TSE:HCAL

19.61
0.01 (0.05%) 1d
0
Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

The Hamilton Canadian Bank 1.25x Leverage ETF (HCAL-T) provides equal exposure to the big 6 banks with modest leverage. However, this leverage increases volatility and has led to a 14% drawdown over the last 2 years compared to 7% on the unlevered ZEB. Experts caution that while it may be promising in certain market conditions, it also poses a double-edged sword for investors due to its 25% swing. Extreme caution is advised when considering this stock for the long term.

Consensus
Caution
Valuation
Fair Value
RISKY

Equal exposure to the big 6 banks, with modest leverage. Leverage increases volatility. Drawdown over the last 2 years was 14% on this compared to 7% on the unlevered, unwritten ZEB. As you reach for yield, remember that leverage and covered writing deliver another edge to that sword on the downside.

E.T.F.'s
RISKY

Lightly levered. 25% of leverage that's balanced periodically, but not daily, so you won't get as much erosion. More like traditional leverage. Promising when rates were low, but no longer. Not a Beta Pro product, which has daily balancing of 100% leverage. 

OK if you're very bullish on banks and need juice in your portfolio. For the long term, it's a double-edge sword of a 25% swing whichever way the market goes. Big selloff provides entry point. Extreme caution needed.

E.T.F.'s
RISKY
Be aware that the ticker is similar to leveraged funds from Horizons Beta Pro that apply leverage daily. The HCAL we're talking about has just 25% leverage with 6 banks. Similar to ZEB, just different in the weights. 25% leverage means it's 25% riskier than a typical position, so 25% to the upside or the downside. Could be used to recoup portfolio losses, but must monitor carefully, extreme caution advised.
E.T.F.'s
COMMENT
For active investments with covered calls, you need to think about what type of exposure you want. Consider the different types of exposures to Canadian banks. It is not early, so would not be adding new money. However, he is overweight and thematically, it is good. Good on a relative basis.
E.T.F.'s
BUY

Covers Canadian banks. Pays a 5.16% dividend. It's a leveraged play, investing 12% of cash they're bringing in, which allows them a better return and more income. A consideration: ZWB uses a covered call on the Canadian banks to pay roughly the same dividend. He never does leveraged plays, but HCAL is fine.

E.T.F.'s
COMMENT
Different ways to play the Canadian banks. There is some volatility but there is yield to compensate.
E.T.F.'s
BUY ON WEAKNESS
A good way to extract enhanced yields from Canadian banks. No issues with it at all. The story for banks is not early. We have had a great run the past 6 months. Buy some dips.
E.T.F.'s
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Hamilton Canadian Bank 1.25x Leverage ETF(HCAL-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Hamilton Canadian Bank 1.25x Leverage ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Hamilton Canadian Bank 1.25x Leverage ETF(HCAL-T) Frequently Asked Questions

What is Hamilton Canadian Bank 1.25x Leverage ETF stock symbol?

Hamilton Canadian Bank 1.25x Leverage ETF is a Canadian stock, trading under the symbol HCAL-T on the Toronto Stock Exchange (HCAL-CT). It is usually referred to as TSX:HCAL or HCAL-T

Is Hamilton Canadian Bank 1.25x Leverage ETF a buy or a sell?

In the last year, 2 stock analysts published opinions about HCAL-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hamilton Canadian Bank 1.25x Leverage ETF.

Is Hamilton Canadian Bank 1.25x Leverage ETF a good investment or a top pick?

Hamilton Canadian Bank 1.25x Leverage ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Hamilton Canadian Bank 1.25x Leverage ETF.

Why is Hamilton Canadian Bank 1.25x Leverage ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Hamilton Canadian Bank 1.25x Leverage ETF worth watching?

2 stock analysts on Stockchase covered Hamilton Canadian Bank 1.25x Leverage ETF In the last year. It is a trending stock that is worth watching.

What is Hamilton Canadian Bank 1.25x Leverage ETF stock price?

On 2024-06-21, Hamilton Canadian Bank 1.25x Leverage ETF (HCAL-T) stock closed at a price of $19.61.