New TD ETFs provide investors with a simple and efficient solution to manage cash flows with the potential to earn an attractive yield through a diversified fixed income portfolio
TORONTO, April 9, 2024 /CNW/ - Today, TD Asset Management Inc. ("TDAM") announced the addition of six new actively managed fixed income Exchange-Traded Funds ("TD ETFs"), the TD Target Maturity Bond ETFs ("TD TMB ETFs") to its comprehensive fixed income suite. This new suite of TD TMB ETFs has the benefits of diversification and professional management that comes with TDAM's Fixed Income Investment Team. The TD TMB ETFs begin trading on the Toronto Stock Exchange (TSX) today.
The TD TMB ETFs offer investors:
- Choice of Canadian or U.S. dollar exposure: Investors can choose to invest in either Canadian or U.S. dollar investment-grade corporate bonds by allocating to a respective ETF and maturity year;
- Bond-like maturity: The TD TMB ETFs allow investors to align their cash flow needs with the known maturity date of the ETF while seeking to reduce sensitivity to changes in the interest rates as the ETF approaches maturity;
- Professional management: The TD TMB ETFs seek to reduce credit risk and maximize income potential by investing in a portfolio of investment-grade securities;
- Diversification: The solution seeks to provide diversification through allocation to a basket of bonds from different issuers and sectors, which potentially contributes to a more resilient fixed income portfolio; and
- Enhanced liquidity: The suite provides investors with a possibility to modify their portfolio allocation as needs change with the flexibility of ETFs that trade during regular market hours.
"This launch showcases the value of our proprietary independent credit research capabilities and offers a compelling avenue for investors looking for a potential to earn attractive yields," said Michael Augustine, Managing Director, Head of Fixed Income & Asset Liability Management, TDAM.
Each of the TD TMB ETFs seeks to provide regular income and preserve capital by investing primarily in a portfolio of investment-grade corporate bonds, with the TD Target Maturity Canadian Bond ETFs focusing on investment-grade Canadian corporate bonds denominated in Canadian dollars, and the TD Target Maturity U.S. Bond ETFs on investment-grade U.S. corporate bonds denominated in U.S. dollars. As target maturity funds, each TD TMB ETF has a pre-determined, specified lifespan. It is, therefore, anticipated that bonds held by a TD TMB ETF will mature in the same year the TD TMB ETF is expected to terminate.
TD Target Maturity |
TD Target 2025 Investment Grade Bond ETF (TBCE) TD Target 2026 Investment Grade Bond ETF (TBCF) TD Target 2027 Investment Grade Bond ETF (TBCG)
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TD Target Maturity |
TD Target 2025 U.S. Investment Grade Bond ETF (TBUE.U) TD Target 2026 U.S. Investment Grade Bond ETF (TBUF.U) TD Target 2027 U.S. Investment Grade Bond ETF (TBUG.U) |
Additional information about the TD TMB ETFs, including the prospectus and ETF Facts, can be found at tdam.com. Information about the complete suite of TD ETFs is also available on our ETFs In-Focus Solutions page.
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.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.
TD Bank Group means The Toronto-Dominion Bank and its affiliates, who provide deposit, investment, loan, securities, trust, insurance and other products or services.
®The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
About TD Asset Management Inc.
TD Asset Management Inc. ("TDAM"), a member of TD Bank Group, is a North American investment management firm. TDAM offers investment solutions to corporations, pension funds, endowments, foundations and individual investors. Additionally, TDAM manages assets on behalf of almost 2 million retail investors and offers a broadly diversified suite of investment solutions including mutual funds, professionally managed portfolios and corporate class funds. Asset management businesses at TD manage $437 billion in assets. Aggregate statistics are as of December 31, 2023 for TDAM and Epoch Investment Partners, Inc. TDAM operates in Canada and Epoch Investment Partners, Inc. operates in the United States. Both entities are affiliates and are wholly-owned subsidiaries of The Toronto-Dominion Bank.
SOURCE TD Asset Management Inc.
Alicia Skrinjar, TD Bank Group, [email protected]
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