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
Canadian Bond ETFs
|
TD Target 2025
Investment Grade Bond ETF (TBCE)
TD Target 2026
Investment Grade Bond ETF (TBCF)
TD Target 2027
Investment Grade Bond ETF (TBCG)
|
TD Target
Maturity
U.S. Bond ETFs
|
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.