TD Asset Management launches three asset allocation ETFs in Canada

Aug 19th, 2020 | By | Category: Alternatives / Multi-Asset

TD Asset Management has launched three asset allocation ETFs on Toronto Stock Exchange catering to investors looking for single-ticker portfolio solutions.

Michael Craig, Managing Director and Head of Asset Allocation & Derivatives at TD Asset Management

Michael Craig, Managing Director and Head of Asset Allocation & Derivatives at TD Asset Management.

The TD One-Click ETF Portfolios provide globally diversified multi-asset exposure.

They are tailored for different investor risk appetites ranging from ‘Conservative’ to ‘Aggressive’.

The funds invest in a mix of the asset manager’s own-branded broad market index ETFs and actively managed ETFs to gain their exposure.

TD Asset Management has not disclosed exactly which ETFs will be used within the portfolios, although the firm maintains a broad range of exposures.

The range includes global, US, and Canadian equity ETFs offering broad market, high dividend, and factor strategies, and, on the fixed income side, aggregate, government, corporate, and high-yield exposures.

Each TD One-Click ETF Portfolio comes with a management fee of 0.25% which includes the cost of investing in the underlying ETFs.

Michael Craig, Managing Director and Head of Asset Allocation & Derivatives at TD Asset Management, commented, “At TDAM, we are always looking for ways to make investing simple and accessible for Canadians. Our new TD One-Click ETF Portfolios are a convenient way to diversify your portfolio even if you only have a small amount of cash to invest.

“Whether you are looking for growth, income, or both, these innovative solutions can help investors reach their medium to long-term investment goals.”

The TD One-Click Conservative ETF Portfolio (TOCC CN) emphasizes income generation with the potential for moderate capital growth. It has a target asset mix of 70% fixed income and 30% equities.

The TD One-Click Moderate ETF Portfolio (TOCM CN) aims to generate long-term capital growth while providing the opportunity to earn moderate income. Its target asset mix is 60% equities and 40% fixed income.

The TD One-Click Aggressive ETF Portfolio (TOCA CN) focuses primarily on generating long-term capital growth while providing a modest level of income. Its target asset mix is 90% equities and 10% fixed income.

TD Asset Management is not alone in offering multi-asset portfolio ETFs in Canada.

Vanguard Canada was the first to enter the space with a suite of five portfolios while RBC iShares followed up shortly after with three portfolios. Vanguard and RBC iShares charge all-in fees of 0.22% and 0.18% respectively for these portfolios.

Horizons ETFs is another firm to test this market, but it has taken a unique approach with its offering. The firm currently offers two ETF portfolios which charge zero direct management fees, although investors still pay the costs on the underlying Horizons ETFs, estimated to be around 0.18%.

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