Middlefield and HANetf Launch MCTC, Europe’s First Active ETF Focused on Canadian Dividend Investing

Already listed on London Stock Exchange and other major European exchanges, this product is the first actively managed ETF exclusively focused on Canadian equities and represents a structural innovation globally, having been created through the world’s first rollover of a UK-listed closed-end investment trust into a UCITS ETF.

The ETF aims to capture Canada’s dividend growth leaders, focusing on high-quality, large-cap North American companies operating in traditionally strong sectors of the Canadian economy—such as energy, infrastructure, financials, and real estate.

An Innovative Transaction: From Investment Trust to ETF

MCTC is not a brand-new launch but rather the outcome of a strategic transformation. The ETF originates from the conversion of the Middlefield Canadian Income Investment Trust (MCTC), a London Stock Exchange-listed closed-end fund established in 2006 with approximately USD 80 million in assets under management.

This transition—technically termed a “rollover”—marks the first-ever instance globally of a British investment trust being converted into a UCITS ETF. The move was proposed after the closed-end fund had historically traded at an approximate 6.5% discount to its net asset value (NAV) while also facing liquidity challenges. The ETF structure is designed to address both issues by offering investors enhanced liquidity, a reduced NAV discount, tighter bid-ask spreads, and thus greater overall investment efficiency.

Statements from the CEOs

Dean Orrico, President and CEO of Middlefield, commented: “Canadian dividend-paying companies have consistently delivered stable income and attractive returns across multiple market cycles. In recent years, demand for Canada’s abundant natural resources has grown, and today, high-quality Canadian companies are well positioned to generate strong total returns. We believe a UCITS ETF is the most effective vehicle to bring this opportunity—and our investment strategy—to European investors, leveraging Middlefield’s more than 40 years of experience in this space.”

Hector McNeil, Co-Founder and Co-CEO of HANetf, stated: “MCTC marks our sixteenth actively managed ETF brought to major European exchanges via the HANetf platform. The European active ETF market is indeed experiencing rapid growth, with assets under management rising by 68% in 2024 (reaching over USD 55.43 billion) and by a further 66% in the first nine months of 2025 (amounting to USD 85.79 billion). We anticipate continued expansion in this segment and aim to become a leader in active ETFs in Europe by offering the broadest range of active strategies on the continent.”

Market Context: The Active ETF Boom in Europe

McNeil’s remarks are supported by market data. The launch of MCTC arrives amid explosive growth in Europe’s active ETF segment.

Despite this rapid expansion, active ETFs still represent only around 2.6–2.7% of the total European ETF market—a significantly lower share compared to the U.S. market (10.2%)—leaving substantial room for further growth. Indeed, 74% of professional investors expect this share to reach 5% by the end of 2026.

Middlefield’s Track Record and the Investment Case for Canada

Middlefield is no stranger to such conversions. “Over the past decade, Middlefield has converted several of its closed-end funds into ETFs listed on the Toronto Stock Exchange,” capitalizing on the structural advantages of the ETF vehicle.

MCTC’s strategy is grounded in the belief that Canadian equities present a compelling long-term opportunity. Currently, they trade at attractive valuations relative to their U.S. and global peers. According to the firm’s analysis, the combination of growing dividends and modest valuations offers the potential for competitive returns, supported by a pro-business Canadian federal government focused on lowering taxes and regulations while promoting significant infrastructure investments.

MCTC ETF Fact Sheet

To fully understand the product, the table below summarizes its key features.