Do You Trust Canadian Banks? Then This ETF Might Be a Perfect Fit for Your TFSA
If you’re like most Canadians, you probably have a chequing or savings account with one of the big banks — maybe TD, RBC, or CIBC. But here’s a question:
If you trust these banks with your money, why not invest in them too — and let them grow your wealth?
There’s an ETF that lets you do exactly that: HCAL (Hamilton Enhanced Canadian Bank ETF). It’s simple, focused, and designed around something most Canadians already believe in — our banking system.
What Is HCAL?
HCAL is an ETF that holds the Big Six Canadian banks:
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD)
- Bank of Nova Scotia (Scotiabank)
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
- National Bank of Canada
It’s built with a nearly equal weight of these banks, giving you a balanced exposure across the strongest financial institutions in the country.
Why HCAL Deserves a Spot in Your TFSA
Here’s why HCAL is worth considering — especially if you’re using your TFSA to invest for the long term:
✅ Solid Growth Potential
Since inception, HCAL has delivered a total return of 20.05%, including dividends. That’s not bad for an ETF built around banks most of us already know and trust.
💰 Attractive Dividend Yield
HCAL is currently offering a dividend yield of 5.61%, which is considered very healthy — especially in today’s market. And remember, in a TFSA, those dividends are completely tax-free.
If you had invested $10,000 since inception, March 2007, it would have grown to $82,000 till July 2025.
DRIP-Eligible (Automatic Reinvestment)
You can enroll in a Dividend Reinvestment Plan (DRIP), which means your dividends are automatically used to buy more units of the ETF — again, all tax-free inside your TFSA. This turns your ETF into a compounding machine over time.
So, Is This in Your TFSA?
HCAL isn’t a hype-driven, short-term play. It’s a smart, focused, and income-generating ETF that aligns with what many Canadians already believe: our banks are solid, stable, and here for the long haul.
If you’re building your TFSA with long-term wealth in mind, and you want exposure to steady dividends plus growth, HCAL is worth a serious look.
So…
Do you trust Canadian banks? If yes, maybe it’s time to invest in them — not just bank with them.