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What is an ETF?

An Exchange Traded Fund (ETF) offers investors the chance to invest in a diverse mix of assets like stocks and bonds. ETFs are highly liquid and available on the stock exchange, so you can buy or sell them whenever the market is open. Investing in ETFs is a flexible way to participate in the market.

Benefits of TD ETFs

  • Diversification

    ETFs offer diversification within a broad market or a more focused sector, without having to buy and manage multiple stocks.

  • Flexible Trading Options

    Like stocks, ETFs can be traded any time the market is open to help you reach your investment goals.

  • Low Costs

    In comparison with other investment funds, ETFs tend to be lower cost investment options.

  • Transparency

    If you have ever wondered what’s in an ETF, it’s no secret. The ETF holdings are published daily.

Investment Categories

There is a broad range of TD ETFs available to help you meet your investing goals. Learn more about the TD ETF offering.

  • All-in-One ETFs

    Imagine an ETF that invests in multiple ETFs. That’s what an All-in-One ETF does.

    These ETFs are for:

    • Investors who are looking to leave portfolio construction up to the investment professionals.
    • Diversifying your portfolio in one simple solution.
    • Getting broad market exposure and access to asset classes at a low cost.
    Explore All-in-One ETFs

  • Passive ETFs

    Passive ETFs are for investors wanting instant exposure to hundreds of securities.

    These ETFs are for:

    • Getting access to a variety of securities that would otherwise be too costly and time-consuming for the average investor to purchase.
    • Incurring lower fees compared to actively managed ETFs.
    • Accessing a variety of investments in different sectors and geographic regions.
    Explore Passive ETFs

  • Active ETFs

    Active ETFs are for those investors who want to leave investment decisions to the professionals.

    These ETFs are for:

    • Gaining access to investment professionals that can take advantage of market opportunities.
    • Actively diversifying across sectors and geographic regions.
    • Potentially achieving higher returns than the index.
    Explore Active ETFs

  • Special Focus ETFs

    Special Focus ETFs invest in specific industries or themes. They offer exposure to sectors like Technology, Health Care, banking, and more.

    These ETFs are for:

    • Investing in industries you think will perform well without hand-picking specific companies.
    • Gaining exposure to specific asset classes or sectors for a more personalized portfolio.
    Explore Special Focus ETFs

  • Quantitative ETFs

    Quantitative ETFs use a blend of data analytics and professional judgment to aim for returns exceeding the index, while managing risk.

    These ETFs are for:

    • Gaining access to an investment approach that combines technology and professional insights.
    • A way to invest in a specialized portfolio.
    • Adding diversification to a portfolio using a data driven investment strategy.
    Explore Quantitative ETFs

Why invest in TD ETFs?

TD Asset Management Inc. (TDAM) is a leading asset manager in Canada with an expanding global presence. We offer an extensive history of innovative solutions designed to provide better risk-adjusted returns with a long track record in integrating public and private market capabilities.

  • Investor-centric

    Baskets of solutions tailored to help you achieve your investment goals.

  • New Thinking

    Innovative investment solutions that can bring new thinking to some of the most important challenges facing investors.

  • Culture

    A collaborative team-based approach that applies our extensive proprietary research capabilities and robust risk management discipline.

  • Experience

    Expertise across traditional and alternative solutions, with over 220 investment professionals.

  • Choice

    One of the broad offerings of investment solutions in Canada.

  • Trust

    TD Asset Management Inc. manages assets on behalf of almost 2 million retail investors and offers a broadly diversified suite of investment solution ETFs1.

ETF Investing Basics

Before buying an ETF, it is important for investors to research offerings so that they align with their particular investment goals and risk tolerance. Depending on an investor’s unique needs, it may be advisable to consult an investment professional.

With actively managed ETFs, the Portfolio Manager picks securities based on their research and strategies. They seek to own a basket of securities that is different from an index, in an attempt to outperform the index.

For passively managed ETFs, the Portfolio Manager seeks to hold a basket of securities similar to the benchmark index it is attempting to replicate. For example, the ETF would seek to hold a similar basket of securities as the S&P/ TSX Composite Index or the Dow Jones Industrial Average Index.

Exchange-Traded Funds (ETFs) are investments that seek to combine the diversification of mutual funds with the trading flexibility of securities. Like mutual funds, ETFs invest in a basket (i.e., portfolio) of securities such as stocks, fixed income securities or commodities. However, unlike mutual funds, ETFs are bought and sold on a stock exchange. This means their pricing changes throughout the day. In contrast, mutual fund prices are determined daily after the stock market has closed. Additionally, mutual fund purchases and sales are processed by the fund company.

ETFs

Mutual funds

Flexibility

ETFs trade on stock exchanges and can be bought and sold any time during the trading day.

Mutual funds are not sold on stock exchanges but transact at the end of the trading day when markets have closed.

Price Transparency

ETF prices are communicated throughout the trading day.

Mutual fund prices are not known until the end of the trading day.

Costs and Fees

ETFs can incur a management expense ratio (MER) fee, sales taxes and independent review committee (IRC) fees. Brokerage commissions may also apply.

Mutual funds can incur many of the same costs as an ETF, including a MER fee which is usually higher since mutual funds typically carry higher operating expenses on top of management fees and sales taxes. At the same time, mutual fund transactions rarely carry transaction and/or commission fees.

Costs of owning ETFs include management fees, operational expenses and trading fees. ETFs charge a management fee and have certain operating costs for their ongoing operation and administration. Added together, these fees make up the management expense ratio (MER), which is the total of the management fees and operating costs expressed as a percentage of the ETF's total assets. Buying and selling ETFs on a stock exchange can also result in brokerage fees and/or commissions.

Insights and investor education

Market Insights

Know what’s happening in the markets with our insights market experts. We'll share with you the latest insights on the ETF markets which will help you invest with that extra bit of knowledge.

Explore the latest insights

Investor Education

We’ll help you discover ETFs and explain how they differ from mutual funds. We’ll also cover how to buy and sell ETFs and all their other potential benefits such as low costs and tax efficiencies.

Explore investor education

Tools and Calculators

Use our tools and calculators to compare investment options and get a better understanding of our product offerings.

Explore tools and calculators

Ways to invest in TD ETFs

Below are some options to invest in TD ETFs through TD. If you are not a client of TD or already work with an investment professional at another institution, ask them about our ETF lineup.

  • TD Easy Trade

    Invest in TD ETFs commission-free with the TD Easy Trade mobile app. It allows investors to buy, sell, and track their investments on their phone.

    Open an Account

  • TD Direct Investing

    Invest in TD ETFs with TD Direct Investing. Get access to market insights and research tools to help you grow your investments. If you have an investment account, log in to WebBroker.

    Open an Account

  • TD Advisor

    Sometimes help from a real person feels the most assuring. Get one-on-one advice from a TD Wealth Advisor on ways to invest that’s best for you.

    Find an Advisor