Hamilton ETFs Releases ETFs Based on Solactive’s Indices Offering Exposure to Canadian Financial Sector and U.S. Covered Call ETFs

Expanding its relationship with Solactive, Hamilton ETFs, the fastest-growing ETF provider in Canada, licensed two indices as the underlying for two new ETFs in Canada: Hamilton Enhanced Canadian Financials ETF, tracking the Solactive Canadian Financials Equal-Weight Index, and Hamilton Enhanced U.S. Covered Call ETF, tracking Solactive U.S. Covered Call ETFs Index.

Interest rates are expected to rise in 2022, providing an earnings tailwind for many companies within the financial services sector. Designed for investors who seek exposure to this segment as well as attractive monthly income, the new Hamilton Enhanced Canadian Financials ETF pursues to replicate a multiple of the performance of the Solactive Canadian Financials Equal-Weight Index, which tracks financials companies, especially banks and insurance companies, excluding the ones in the Real Estate segment. It has an equal weight representation of the largest 12 financial companies located in Canada and listed in Toronto.

The Hamilton Enhanced U.S. Covered Call ETF, which targets a multiple of the performance of the Solactive U.S. Covered Call ETFs Index, goes in another direction, focusing on a combination of U.S. focused equity covered call ETFs that collectively offers a sector mix broadly similar to that of the S&P 500 but with a materially higher dividend yield profile, due to the options written by the ETF’s universe.

The two ETFs started trading, respectively, on 27 January and 8 February on the Toronto Stock Exchange under the ticker symbols HFIN and HYLD/HYLD.U.

Timo Pfeiffer, Chief Markets Officer at Solactive, comments: “We are delighted to expand our engagement with the fastest-growing ETF provider in Canada, Hamilton ETFs, especially with a product featuring the financial sector, as it has been showing great potential of growth in the current interest rate environment, as well as a covered call ETF, which can offer great income opportunities.”

We are pleased to continue our association with Solactive AG for our index based ETFs, and are excited to expand our ETF lineup with the launch of HFIN and HYLD, which we believe will help investors meet their long-term investment goals and monthly income needs, with initial target yields of 5% and 10%, respectively”, said Pat Sommerville, Partner, Head of Business Development at Hamilton ETFs.