Exchange Traded Funds (ETFs)

Diverse as mutual funds, flexible as securities.


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)

  • Diversification

    One ETF can provide instant diversification—either within a broad market portfolio or a focused sector (technology), without having to buy and manage multiple stocks.

  • Transparency

    You can always get a real-time view of an ETF's price during the trading day, plus see how the holdings are doing and if they are right for you.

  • Trading flexibility

    Like stocks, ETFs can be traded any time—even after hours and weekends—and get them filled during market hours. You have control.

  • Lower cost of entry

    Depending on an investor's situation, ETFs that hold stocks and other investments may be more cost-effective than buying the investments separately.


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.

  • Passively managed ETFs

    A passively managed ETF is set up to track the performance of a particular index—stocks or bonds and covering large or small sectors of the market.

  • Actively managed ETFs

    An actively managed ETF attempts to outperform a specific benchmark or index.

  • All-in-one ETF portfolios

    An all-in-one ETF invests in multiple ETFs that can be both actively and passively managed—providing a simple, low-cost way to create a diversified portfolio.


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.

  • Standard: $9.99 flat rate to buy or sell

    Canadian & U.S. stocks standard online commission rate.

  • Active trader: $7.00 flat rate

    150+ trades / quarter on Canadian & U.S. stocks, + $1.25 per contract for Canadian & U.S. options

  • What you get:

    • Real-time market data and quotes for the Canadian and U.S. markets
    • Exclusive research reports
    • Education resources that are online and on-demand

Start investing in ETFs with TD Direct Investing

  • 1

    Open an account

    Select the TD Direct Investing account you want to open online or book an appointment.

  • 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.

  • 3

    Start investing toward your goals

    Build your portfolio using ETFs, stocks, options, mutual funds, GICs and more.


Looking for a simple, easier way to invest?

With TD EasyTradeTM, it's easy to build a portfolio. With a few taps, set goals and start investing with stocks and TD ETFs. Then track your progress right in the app.


Open an account online – it's fast and easy

Whether you're new to self-directed investing or an experienced trader, we welcome you.

  • Apply online

    It's easy to open a cash, margin, RSP, or TFSA account.

  • Call us

    We're here for you. Monday to Friday, 7 am to 10 pm ET

    1-800-465-5463 1-800-465-5463
  • Book an appointment

    Let's chat, face-to-face at a TD location convenient to you.


Have a question? Find answers here