Two new ETFs for Canadian investors

Article Excerpt

This month, we highlight two actively managed ETFs from Middlefield Group that were recently converted from closed-end funds. MIDDLEFIELD INNOVATION DIVIDEND ETF $11.43 (Toronto symbol MINN) invests in companies that derive a major portion of their revenue from products or services related to major technological innovations. The ETF is actively managed and discloses its full portfolio only every six months although the top holdings are available more frequently. Its current holdings are mostly listed in the U.S. (95%) with the balance in Canada. Technology companies make up the bulk of the holdings. These include Alphabet, Enphase Energy, Advanced Micro Devices, Nvidia, ASML Holding, Amazon, Microsoft, Tesla, Visa, and Broadcom. The ETF pays a monthly dividend of $0.033 per unit, which has been unchanged since the predecessor closed-end fund launched in 2018. The yield is 3.5%. The trouble is that the dividend income that the ETF receives from its own portfolio is insufficient to cover its distribution to unitholders. To make up the difference, it has to make…

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