Hamilton launches active US mid-cap financials ETF

Sep 4th, 2017 | By | Category: Equities

Hamilton Capital is launching the actively managed Hamilton Capital US Mid-Cap Financials ETF (HFMU) on the Toronto Stock Exchange. As the name suggests, the fund will give exposure to US mid-size companies operating in the financial sector. The ETF will begin trading at market open on 5 September 2017.

Hamilton launches active US mid-cap financials ETF

The launch marks the third ETF offered by Hamilton that provides actively managed exposure to the financial sector.

The investment objective of HFMU is long-term returns, consisting of capital growth and dividends. It aims to achieve this by investing in financial services companies that represent attractive investment opportunities. HFMU will distribute income quarterly and has a management expense ratio (MER) of 0.85%

To determine which companies to select for the fund, Hamilton will “apply specialized analysis and expertise”, reviewing a company’s individual attributes such as valuation and growth prospects, as well as the macro environment, including, but not limited to, GDP growth, inflation and interest rate trends, fiscal and monetary policies, and regulatory trends within its sub-sector or geography.

The portfolio is anticipated to be comprised of companies with a market capitalisation of between $500 million and $20 billion domiciled in the US, however actual investments may be selected from any sub-sector, country or capitalisation level of the global financial services sector.

HFMU is the third ETF to be launched by the Toronto-based asset manager after the Hamilton Capital Global Bank ETF (TSX: HBG), launched in January 2016, and the Hamilton Capital Global Financials Yield ETF (TSX: HFY), launched in February 2017. All three ETFs are actively managed and give exposure to companies in the financial sector.

HBG has assets under management (AUM) of $46m and HFY has AUM of $18m. Both funds have MERs of 0.85%.

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