Solactive strengthens its Presence in Canada with Hamilton ETFs issuing two Bank ETFs on Solactive Indices
Both the Canadian and Australian banking sector remain long-distance runners. With an average net annual return of 11%[1] since 1996 for the Solactive Australian Bank Equal-Weight Index and 14.4% over three decades[2] for the Solactive Canadian Bank Mean Reversion Index, Canadian ETF provider Hamilton Capital Partners Inc. (“Hamilton ETFs”) recognized the potential of these bank indices and licensed both indices as the underlying for two new index ETFs in Canada. The rules-based strategies are aimed at Canadian investors who want to benefit from investing in two world class banking sectors with excellent long-term performance and attractive dividends. With the release of the two ETFs, Solactive expands its market share in Canada once more.
The constituents of the Solactive Australian Bank Equal-weight Index serving as the underlying of the Hamilton Australian Bank Equal-Weight Index ETF consist of the five largest banks in Australia, which are equally weighted and rebalanced semi-annually. The Solactive Canadian Bank Mean Reversion Index underlying the Hamilton Canadian Bank Mean Reversion Index ETF enables investors to invest in the six largest Canadian banks. In contrast to its equally-weighted Australian peer, the weighting of the Solactive Canadian Bank Mean Reversion Index is based on mean reversion, where each month, the three banks that are “oversold” are weighted to 80% of the index and the three banks that are “overbought” are weighted to 20% of the index.
“For us, the Canadian ETF market has always been one of our core markets, and we are very happy to expand our footprint in this region once again, this time with Hamilton ETFs and their team of financial sector specialists.” comments Timo Pfeiffer, Chief Markets Officer at Solactive.
Robert Wessel, Managing Partner at Hamilton ETF, comments, “We are pleased to partner with respected global index provider, Solactive AG, on these two unique index products for Canadian financial services investors.”
The two ETFs – Hamilton Canadian Bank Mean Reversion Index ETF (ticker: HCA) and Hamilton Australian Bank Equal-Weight Index ETF (ticker: HBA) – started trading on Monday, 29th of June on the Toronto Stock Exchange.
[1] Time frame: 1996-2020
[2] Time frame: 1990-2020