Mutual Funds
What is an ETF?
Exchange Traded Funds (ETFs) can be an easy way to help investors get into the market with instant diversification. ETFs are a collection of stocks, bonds, and more, traded like a stock on an exchange. Sound similar to mutual funds? They are both designed to add diversification to an investment portfolio. However, there are some differences between the two including when they can be bought or sold. Mutual funds are traded at the end of the day, so you pay whatever the value is at the time. You can trade an ETF just like a stock anytime during the market day.
Benefits of Exchange Traded Funds (ETFs)
How ETFs work?
Since an ETF is a collection of underlying stocks, bonds and other assets, its value will change based on the fluctuation of these underlying assets. Sometimes this may cause the price of the ETF to fall, therefore losing value. Other impacts on the value of an ETF might include changes in interest rates and/or currency exchange rates. Always do detailed research before making any investment decision.
ETFs: The basics
ETFs can be a simple way to get into the market, allowing you to invest in multiple companies, industries, or sectors you're interested in, and to diversify your portfolio. Watch the video to learn more about how ETFs can:
- Help build an asset allocation that matches one's investment strategy
- Be either actively or passively managed, and the difference between the two
- Be purchased from your direct investing brokerage
ETF investing strategies
An ETF can be either passive or active, or it can be a combination of both. Choose the ETFs that align with your investment strategy.
Discover more about ETFs
ETF pricing: clear and simple
It's the service, support, and overall experience of investing with us that defines the value for you.
Start investing in ETFs with TD Direct Investing
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1
Open an account
Select the TD Direct Investing account you want to open online or book an appointment.
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2
Fund your account
Transfer funds into your account with the online bill payment or funds transfer feature – or set up recurring deposits. Moving investments from another brokerage? Ask about how we could cover the transfer fees up to $1502.
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3
Start investing toward your goals
Build your portfolio using ETFs, stocks, options, mutual funds, GICs and more.
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Open an account online – it's fast and easy
Whether you're new to self-directed investing or an experienced trader, we welcome you.