Madison Investments launches two U.S. ETFs on TSX

Madison Investments has listed two actively managed U.S. exchange-traded funds on the Toronto Stock Exchange: Madison US Mid Cap ETF (TSX: MMID) and Madison US Large Cap ETF (TSX: MLRG).

The privately held, Wisconsin-based firm has operated for 51 years and manages about USD28 billion across separately managed accounts, mutual funds and active ETFs.

Steven Carl, chair of Madison’s executive committee, called the listings “an important milestone” and said they reinforce the firm’s commitment to serving Canadian investors with the same disciplined investment approach used in its other products.

Madison cited tax advantages, intraday trading liquidity and diversification as reasons Canadian investors are increasingly interested in active ETFs and described active ETFs as a natural extension of its product lineup.

Haruki Toyama, portfolio manager and head of Mid Cap & Large Cap Equity, said the funds are built on intensive fundamental research and aim to provide exposure to high-quality U.S. companies with durable growth at reasonable valuations. “We’re committed to building and offering risk-conscious strategies that seek to deliver strong long-term returns,” Toyama added.

Madison has a distribution relationship with Royal Bank of Canada that spans more than a decade in Canada and over 20 years in the U.S. The firm manages about USD3.5 billion for RBC platforms, approximately USD2.1 billion in the U.S. and USD1.5 billion in Canada.

The firm said it may introduce additional actively managed ETFs on both the New York Stock Exchange and the Toronto Stock Exchange. Carl noted private ownership allows the firm to make longer-term decisions without pressure from quarterly earnings targets and said the company expects Canadian ETF growth to be positive but steady, requiring patience.

The two funds trade under the tickers MMID and MLRG on the TSX and bring Madison’s U.S. mid- and large-cap equity strategies to Canadian investors in an ETF wrapper.