Hamilton ETFs Launches Hamilton Enhanced Utilities ETF, Tracking Solactive Index
Facing a volatile economic environment, investors may want to protect and diversify their portfolio. Stocks of utility services companies, such as traditional utilities as well as pipeline and telecommunications, are likely to suffer less from fluctuations, as demand for their products tends to remain resilient even during recessions. Additionally, companies paying consistent dividends are also likely to provide stability to a portfolio, as they offer investors an income source that may be beneficial, especially during turbulent periods in the market. Looking to provide investors with such an opportunity, Hamilton Capital Partners Inc. (“Hamilton ETFs”) recently announced the launch of the Hamilton Enhanced Utilities ETF (“HUTS” or the “ETF”), which tracks a multiple of the Solactive Canadian Utility Services High Dividend Index.
Going beyond traditional utilities, the index is designed to measure the performance of securities from the utilities, telecommunication, and pipeline industries that distribute high dividend payments. To be eligible to constitute the Solactive Canadian Utility Services High Dividend Index, companies must be listed on the Toronto Stock Exchange and classified under any of the following industries according to FactSet classification: electric utilities, gas distributors, water utilities, alternative power generation, and oil & gas pipelines, major telecommunications, and wireless telecommunications.
The ETF began trading on the Toronto Stock Exchange (“TSX”) under the ticker symbol “HUTS”.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are happy that Hamilton decided to launch such a product with us. The index strategy aims to offer a defensive approach to investors seeking to hedge their portfolio against economic volatility. As utility services are considered a defensive sector within the stock market, it could become useful in the following months, as the macroeconomic outlook is deteriorating, with increasing inflation and a potential recession in the foresight.”
Patrick Sommerville, Senior Partner, Head of Business Development, Hamilton ETFs: “We are pleased to partner again with Solactive AG with the launch of HUTS. We believe the historically defensive nature and a strong record of stable dividends of the Canadian utilities sector provide the right ingredients for a strategy utilizing modest leverage to provide investors with the potential for enhanced long-term growth and higher monthly income.