Celebrating ETF Milestones

Celebrating ETF Milestones: Innovative ETFs for Canadian Investors From TDAM.

Published:06/07/2023

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Over the past 5 years TD Asset Management Inc. (TDAM) has been busy launching over 40 Exchange-Traded Fund (ETF) investment options and growing its ETF assets under management (AUM), starting from under $300 million, to today where the firm has exceeded $10 billion. This milestone could not have been achieved without the expertise and collaboration between TDAM's talented product, portfolio management and sales teams. More importantly, we want to thank our valued clients, whose needs drive our commitment to continued innovation and have entrusted us with their money to help reach their investment goals.

Building a strong foundation

It started with developing one of the broadest Mutual Fund solution sets in Canada. TDAM is known for its capabilities in fixed income, fundamental equity, and pioneering low volatility strategies in Canada. We then decided to extend these capabilities a step further and leverage them in our TD ETFs.

While we reflect on this exciting journey and look forward to the next evolution of our ETF line-up, we wanted to highlight some of our popular ETF solutions. About 7 years ago, we launched 6 new ETFs, giving investors convenient access to Canadian, U.S., and Global markets through index ETFs. These 6 tickers are the foundation of the TD ETF line-up and a simple way for investors to build a diversified portfolio of stocks and bonds:

All of these ETFs track an index developed by Solactive AG, an innovative index provider based out of Germany that recently won "Best Index Provider" awards in six different categories on the ETF Express Canadian ETF awards 2023.

"There is an ETF for that"

Over a decade ago, you'd be hard pressed not to hear "There's an app for that" on a daily basis. Today, the same can be said for ETFs as they have seen a remarkable growth trajectory, now exceeding 1,300 ETFs in Canada alone.

From the robust foundation above, we set out on a mission to build a line-up of ETFs to not only give investors a diverse set of strategies, but also focused on what was missing in the marketplace to provide differentiated solutions and help solve some of our clients' most important challenges.

Looking for income….and growth?

When comparing covered call ETFs available at the time, we noticed the lack of growth strategies. Covered call ETFs offer a way for clients to earn an enhanced yield, however often there is a catch— you may sacrifice growth (total return). This was the inspiration behind the TD Active Global Enhanced Dividend ETF (TGED), which seeks both income (4.3% dividend yield¹) and growth (12.5% average yearly total return for last 3 years²). We accomplish this by taking an active approach to covered call option writing and by leveraging our experienced Fundamental Equity team to decide when and, importantly, when not to write call and put options. Check out our TD Enhanced Dividend ETF Brochure, Pioneering a New Frontier, for more information on how this is accomplished.

Looking for pure technology exposure?

Until the launch of the TD Global Technology Leaders Index ETF (TEC), the Canadian marketplace did not offer ETF investors broad based exposure to pure global technology companies. This was a clear gap and we filled it with an ETF that tracks a custom index that is reviewed annually by TDAM. This helps ensure that TEC evolves with the market. Learn more about our Technology ETFs here.

Below we highlight some of our other differentiated solutions:

Want to invest in the stable growth of the Canadian banking sector? The TD Canadian Bank Dividend Index ETF (TBNK) may be for you. TBNK invests in Canada's six biggest banks and puts more weight in companies that exhibit higher dividend growth. Learn more here.
Looking to take advantage of the rising cost of global carbon prices? We have a solution for that in the TD Global Carbon Credit Index ETF (TCBN), which provides exposure to the price of carbon. Learn more here.
Seeking to invest in a historically defensive sector such as Healthcare? The TD Global Healthcare Leaders Index ETF (TDOC) provides exposure to a custom-built index that offers diversification amongst leading and innovative healthcare companies. Learn more here.
Need fixed income exposure? Fixed income is an important complement to any portfolio, acting as a stabilizer and source of income. With interest rates at the highest they've been since 2008, fixed income is back in the spotlight. Interested in short-term, long-term, high yield, or long duration bonds? Corporate or government bonds? If that confused you, let our experienced portfolio managers do the work. The TD Income Builder ETF (TPAY) is an all-in-one fixed income ETF that invests in other fixed income ETFs including securities from issuers anywhere in the world. To learn more about our fixed income ETF line-up, read about the TDAM Fixed Income Advantage.

From everyone here at TDAM, we sincerely thank you for taking the time to learn more about our ETF solutions. We look forward to bringing you more solutions, more choices and more opportunities. To view our entire line-up, visit us at td.com/etfs and download our TD ETF Quick Product Guide.

Be sure to follow us on Twitter and LinkedIn to stay up to date on all content and new product releases.

¹ Calculated as of April 30, 2023. Represents an annualized distribution yield on a forward-looking basis. Current distribution amount multiplied by 12 months and then divided by current NAV.

² Performance is annualized and net of fees, as of April 30, 2023.

The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice.

Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance.

Commissions, management fees and expenses all may be associated with investments in exchange- traded funds (ETFs). Please read the prospectus and ETF Facts before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns.

Certain statements in this document may contain forward looking statements (“FLS”) that are predictive in nature and may include words such as “expects”, “anticipates”, “intends”, “believes”, “estimates” and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest and foreign exchange rates, equity and capital markets, the general business environment, assuming no changes to tax or other laws or government regulation or catastrophic events. Expectations and projections about future events are inherently subject to risks and uncertainties, which may be unforeseeable. Such expectations and projections may be incorrect in the future. FLS are not guarantees of future performance. Actual events could differ materially from those expressed or implied in any FLS.

TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto- Dominion Bank. TD Asset Management Inc. is a wholly-owned subsidiary of The Toronto-Dominion Bank.

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