Toronto-based Hamilton Capital Partners Inc. has adding to its suite of financial services equity ETFs with the launch of Hamilton Capital Australian Financials Yield ETF.
Units of the new ETF began trading on Monday on the Toronto Stock Exchange (TSX) under the ticker symbol HFA.
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HFA seeks long-term returns consisting of regular dividend income with modest long-term capital growth from an actively managed equity portfolio built primarily of Australia-based financial services companies, the company says in a news release.
“We are very excited to launch HFA, which is intended to provide investors with exposure to a world class financial services sector with a history of long-term outperformance versus the Canadian financials. Australia is also home to some of the world’s best capitalized banks, which outperformed their Canadian peers during the global financial crisis. With a portfolio of high dividend yielding stocks, HFA is well suited, in our opinion, for investors seeking attractive monthly dividends and portfolio diversification from a group of companies operating in one of the world’s most successful economies” says Rob Wessel, managing partner at Hamilton Capital, in a statement.
HFA will also employ a covered call strategy to help generate additional income and to help mitigate downside risk. Toronto-based Horizons ETFs Management (Canada) Inc. will act as subadvisor to the solely for the writing of covered call options on its portfolio securities.