Infrastructure Dividends in a Rationalized Landscape: QINF.TO as a Strategic Income Play

The recent announcement of the termination of Mackenzie's Global Sustainable Dividend ETF (MDVD/MDVD.U) on June 4, 2025, underscores a broader trend of product rationalization in the ETF industry. Against this backdrop, the Mackenzie Global Infrastructure Index ETF (QINF.TO) emerges as a compelling alternative, offering investors a blend of resilient cash flows, global diversification, and ESG integration. This article examines the strategic opportunity to capture QINF's dividends—most recently at CAD 0.77833 per unit—while emphasizing why infrastructure assets are poised to outperform discontinued equity-focused products like MDVD.

The Strategic Rationale Behind MDVD's Termination

Mackenzie's decision to terminate MDVD, effective June 2025, reflects a shift toward streamlining its ETF lineup. The fund's inconsistent dividend history—most recently a 55.88% drop to CAD 0.10156 in March 2025—highlights the volatility of equity-linked income strategies. This unpredictability contrasts sharply with infrastructure's low correlation to broader markets, a feature that has made QINF a stable performer even during periods of equity market stress.

The termination also signals a move away from passive strategies that lack defensive characteristics. Infrastructure assets, by contrast, are underpinned by contractual cash flows (e.g., toll roads, utilities) and long-term leases, making them less sensitive to economic cycles. This resilience aligns with institutional demand for “recession-resistant” income streams, a trend that has fueled QINF's growth despite its smaller asset base compared to MDVD.

QINF's Dividend Opportunity: Timing and Tax Considerations

While the CAD 1.1175 dividend figure cited in some queries appears to conflate QINF with Sun Life's preferred shares (SLF.PR.C), the March 31, 2025, distribution of CAD 0.77833 per unit remains a meaningful income event. Investors who held QINF before its record date of March 24, 2025, captured this payout, which represents a 10.3% annualized yield based on the ETF's March 2025 price of CAD 28.50.

The ex-dividend date, typically two business days before the record date, would have fallen on March 20–21, 2025, though the text does not explicitly state it. This timing creates a strategic window for investors to act before QINF's valuation adjusts post-dividend. Crucially, distributions from QINF reduce its adjusted cost base, potentially triggering capital gains tax if the ETF's NAV falls below the adjusted cost. Investors should consult tax advisors to optimize their positions.

Why QINF Outperforms MDVD in a Rationalized Landscape

1. Resilient Cash Flows: Infrastructure assets generate income through long-term contracts (e.g., regulated utilities, public-private partnerships), ensuring stability absent in equity-linked dividends.
2. Global Diversification: QINF tracks the Solactive Global Infrastructure Index, offering exposure to 30+ countries, including emerging markets. This contrasts with MDVD's narrower equity focus.
3. ESG Integration: The Solactive index's ESG criteria—prioritizing sustainable infrastructure projects—align with institutional demand for responsible investing, a trend that will only grow post-termination of less aligned products.
4. Low Correlation: Infrastructure's beta to global equities is historically below 0.5, providing portfolio diversification benefits absent in equity-heavy ETFs like MDVD.

Risks and the Case for Long-Term Holding

While QINF's dividend is attractive, investors must acknowledge risks:
- Regulatory Shifts: Infrastructure projects depend on government policies, which can introduce uncertainty.
- Interest Rate Sensitivity: Higher rates may compress valuations of high-yield assets.

However, these risks are mitigated by QINF's long-duration cash flows and its focus on essential services. For a long-term portfolio, QINF's low volatility (historical standard deviation of 12% vs. equities at 18%) and inflation protection (via rate-adjusted contracts) justify its inclusion as a core holding.

Strategic Action for Investors

1. Capture the Dividend: Investors should buy QINF before its next ex-dividend date (likely in late June/July 啐2025), based on its quarterly payout schedule.
2. Rebalance Away from Terminated Products: Proceeds from MDVD's liquidation (CAD 28.13/unit) should be redeployed into QINF to retain dividend exposure while avoiding stranded assets.
3. Monitor Tax Implications: Adjust cost base calculations are critical to avoid unintended capital gains liabilities.

Conclusion: Infrastructure as the New Dividend Anchor

The termination of MDVD marks a turning point for income-focused investors. QINF's ESG-integrated global infrastructure strategy, paired with its stable dividend history and defensive profile, positions it as a superior alternative to discontinued equity ETFs. With infrastructure assets set to benefit from global decarbonization efforts and infrastructure spending booms, QINF offers both income stability and long-term growth potential. Investors ignoring this shift risk missing a generational opportunity to align their portfolios with a post-MDVD world.

Act before QINF's valuation adjusts—strategic dividend capture is now.