Hamilton Enhanced Utilities ETF

The fund is a bullish one-day bet on a broadly defined Canadian utilities sector. It provides 1.25x leveraged exposure to an equally weighted index that captures the TSX-listed companies classified under Utilities, Pipelines, or Telecommunications. Eligible stocks must meet minimum liquidity, dividend yield, and market-cap requirements. To build a concentrated portfolio of 12 stocks, the index ranks stocks within each category by market capitalization, with the highest-ranking securities selected for inclusion. To gain its leveraged exposure, the fund uses cash borrowings, short sales, and derivatives. As a leveraged product, the fund is not a buy-and-hold ETF, it is a short-term tactical instrument. The fund rebalances daily. As a result, compounding and path dependency make its long-term returns difficult to predict when compared with its underlying index. Over longer periods, returns can vary significantly from 1.25x exposure to its underlying index.