Wednesday, June 12, 2024

This ETF Yields More Than 5% and Invests in Sustainable Infrastructure

Must read



Oftentimes if you invest in a high-yielding dividend stock it can be risky and it may not be a good growth investment, either. One exchange-traded fund (ETF), however, gives investors both of those aspects in just a single investment.

The Middlefield Sustainable Infrastructure Dividend ETF (TSX:MINF) invests in sustainable infrastructure stocks. These include stocks which are involved with hydrogen energy, battery storage, wind power, solar power, and other renewable energy sources. The fund’s forward-looking strategy with respect to energy and infrastructure can make it an appealing investment to buy and hold for the long term.

Year to date, the ETF has risen by more than 7%. And when you include its dividend, its total returns are around 11%. That’s not far lower than the S&P 500’s total returns, which are approximately 13%.

The fund charges a management fee of 1.25% so it isn’t the cheapest ETF out there. But it is an actively managed fund which often comes at a premium. Its dividend yield is more than 5% and with its solid returns, it can make for a good income-generating investment to hang on to for years.

The fund is heavily skewed towards utilities and industrial stocks, with those sectors account for 50% of its told holdings. Energy and pipeline stocks account for another 29%. The largest three holdings in the ETF are Topaz Energy (TSX:TPZ), Xylem (NYSE:XYL), and Tourmaline Oil (TSX:TOU).

With strong returns, a high yield, and a good mix of energy and utility stocks, the Middlefield Sustainable Infrastructure Dividend ETF can make for a great investment to add to your portfolio today.

Latest article