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At a glance
- Global financial markets are vast and investing in them can open a world of opportunities, spanning countless industries, geographies and business models that drive the global economy.
- Gaining access to these growth opportunities can be challenging for many investors.
- TD Asset Management Inc. (TDAM) recently launched the TD All-Equity ETF Portfolio (TEQT), an all-equity ETF Portfolio solution that helps investors gain exposure to a full array of equites in a low-cost and efficient way.
Equity markets are vast. Investing in them can open a world of opportunities, spanning countless industries, geographies and business models that drive the global economy. Most equity markets around the world are often concentrated in a small number of sectors that dominate their respective economies.
Take Canada for instance. Investors who solely invest in Canadian equities will naturally be over exposed to Financials, Energy and Materials, while having little to no exposure to Technology, Healthcare, and Consumer Discretionary sectors. In addition, some industries are very localized or concentrated in a specific region for varying reasons. Take luxury goods for example. Premium, high-end, heritage luxury brands are typically situated in the European epicenters of Italy and France.
For investors, extending their geographic reach can unlock opportunities that are otherwise inaccessible and can gain exposure to industries and businesses across the world, improving portfolio diversification and the overall risk profile of a portfolio. The challenge however is how to gain access to this vast universe of growth opportunities without "breaking the bank" and the hassle of managing a complex portfolio.
An easy and cost-effective way to gain access to global markets is through index investing. While an investor can buy each index themselves via individual ETFs, a portfolio of index tracking ETFs is a simple way to get exposure across multiple indices in a single solution, at a low cost, and with rebalancing between the indices done for you.
Delivering on the options
TDAM has a broad and extensive lineup of ETFs, to help investors construct a well-diversified portfolio. For those that want to take a hands-off approach, investors can consider all-in-one ETF solutions – single ticket solutions that can provide investors with a diversified exposure to stocks and bonds.
Introducing the TD All-Equity ETF Portfolio (TEQT)
TDAM recently launched the new TD All-Equity ETF Portfolio (TEQT). TEQT is an all-in-one solution that helps make equity investing easy. TEQT invests primarily in units of ETFs managed by TDAM that provide exposure to broad based equity markets. Some of the key features and benefits of TEQT include:
- Convenience - TEQT is a simple and efficient way to gain exposure to a broad array of equities in one convenient package.
- Low cost - A low-cost solution offering one of the lowest management fees compared to key competitors.
- Rebalancing – The portfolio will be rebalanced on a quarterly basis to bring the allocation back to the desired asset mix and geographic mix.
- Streamlined portfolio structure – TEQT consists of only three underlying holdings making it easier to understand for investors.
- Equity exposure – 100% equity exposure will allow the highest opportunity for capital growth, better aligning with the risk appetite of many investors comfortable the volatility of the stock market in exchange for potentially higher returns.
- Higher U.S equity exposure compared to key peers – TEQT will maintain a higher weight in U.S equities, which will be positioned to potentially outperform and gain a competitive edge during favourable market conditions.
Visit the TD ETFs solutions page for more information.
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. A number of important factors including those factors set out above can contribute to these digressions. You should avoid placing any reliance on 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.
®The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
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