Exchange-Traded Funds (ETFs) have revolutionized investing by offering Canadians a convenient, cost-effective way to diversify their portfolios across various sectors and geographies.
While many investors focus on popular or widely known ETFs, keeping it simple is often provides excellent opportunities for growth, stability, and long-term wealth creation.
I personally like to keep things simple as stated in the book of “Psychology of Money” by Morgan Husel. There is a platform through TD bank that is called TD EasyTrade that allow you to trade WITHOUT THE FEES on buying any TD ETF Product with partial fractional shares.
Here will discuss 5 of them that I like to buy on a consistent basis !
1. TD U.S. Equity Index ETF
The TD US Equity Index ETF gives Canadians the exposure of US equities with tracking the large cap segment in the United States stock market.
The ETF tracks the broad based US equity delivering growth like returns on large and mid-cap US companies.
The top sector mix includes 40% in technology, 13% in financial services, and 11% consumer services.
The Top 10 Holdings include Microsoft, Nvidia, Apple, Amazon, Meta, Broadcom, Alphabet, Tesla, and JP Morgan Chase.
This ETF as a strategic pillar for investors who want to confidently leverage the U.S. market’s strength without the hassle of purchasing individual U.S. stocks without having learning more about each individual company.
And the great thing about this ETF’s is that it is a passive managed ETF meaning that the MER (management expense ratio) or management fees are LOW.
2. TD Canadian Equity Index ETF
The TD Canadian Equity Index focuses on the top companies listed on Canadian exchanges, this ETF delivers broad exposure to the domestic market.
Canadian investors gain access to well-established industries, from financial services and natural resources to telecommunications by buying this ETF.
The top sector mix includes 33% in financial service, 14% in energy, 15% in basic materials, and 10% in technology.
The top 10 holdings are Royal Bank of Canada, Shopify, Toronto Dominion Bank, Enbridge, Brookfield Corp, Bank of Montreal, Canadian Pacific Kansas City, Constellation Software, Bank of Nova Scotia, and Canadian Natural Resources.
This is also a passive managed ETF meaning that the MER (management expense ratio) or management fees are LOW.
3. TD International Equity Index ETF
If you are looking beyond North American in terms of investment securities and not having access to international investing opportunities, then TD International Equity Index ETF is for you.
This ETF gives you exposure outside of Canada and United States which include Europe, Asia, and Australian region.
By investing in multiple regions and sectors, the fund helps mitigate currency risk and diversify into growth prospects in various regions.
The top regional mix includes 52% in European Union Region, 23% in Japan Region, 11% in Asia Pacific Region, and 10% into other European regions.
Top 10 holdings include Sap SE, ASML Holding NV, Nestle SA, Roche Holding AG, Novartis AG, NOVO NORDISK A/S, HSBC Holdings PLC, AstraZeneca PLC, Royal Dutch Shell PLC, Toyota Motor Corp.
Even though this ETF has a slightly higher MER or management fee, this under-the-radar ETF holds significant potential for Canadian investors who want to broaden their horizons, hedge against domestic risk, and tap into emerging economic cycles around the world.
4. TD Q Canadian Low Volatility ETF
Volatility can create unease among investors, especially during turbulent economic periods or market downturns especially for beginners.
The TD Q Canadian Low Volatility ETF is a hidden gem designed specifically to address this concern by selecting Canadian companies with low beta meaning that it has characteristics of lower price fluctuations based on the share structure of the public company.
These companies typically are your everyday consumer staples you might be familiar with like grocery shopping, everyday financial services, and utility companies.
The top sector mix includes 25% in financial services, 25% consumer staples, 17% utilities, and 8% in telecommunications.
The top 10 companies include Dollarama, Loblaws, Metro, Intact Financial Corp, Fortis, Royal Bank of Canada, Hydro One, George Weston, Toronto Dominion Bank, and Emera.
This ETF is ideal for risk-averse investors or those looking to shield their portfolios from sharp market corrections while still maintaining exposure to Canadian equities.
Because this is an actively managed ETF which mean that holdings may change in the future, this has a higher MER ratio or management fee relative to other ETF’s already discussed.
5. TD Q International Low Volatility ETF
Complementing its Canadian counterpart, the TD Q International Low Volatility ETF extends the low-volatility strategy to international markets.
This ETF invests in carefully selected companies from developed nations outside North America, emphasizing firms with stable earnings and lower sensitivity to market fluctuations while cushion against extreme price volatility.
This a great fund to invest into if you are looking for exposure but do not have access to these regions due to currency risk and conversions and limited accessibility for retail investors.
Top sector regions include 33% European Union region, 27% Asia Pacific region, 22% Japan region, and 13% in other European regions.
Top 10 holdings include Roche Holding AG, Singapore Telecommunications Ltd, Singapore Technologies Engineering Ltd, TeliaSonera AB, Koninklijke KPN NV, Deutsche Telekom AG, Koninklijke Ahold Delhaize NV, Swisscom AG , Telstra Corp Ltd , Relx PLC.
Not only does this ETF offer an important diversification benefit, but it also aligns well with investors seeking global growth balanced by risk management even though this is an actively managed ETF with a higher MER and management fee.
Conclusion
Whether you seek growth, stability, or global diversification, these ETFs provide excellent building blocks for a resilient and forward-looking portfolio.
It is also important to understand that fees are part of ETF’s and they will determine the performance of the ETF product so it’s good to have that in mind along with the small dividends that each of them payout.
As a tip, always keep you long term investment portfolio separate from your other investment for good psychological measure.
As much as I like TD bank in general, this is not a sponsored post.
I’ve been using TD Direct Investing for years and this TD EasyTrade product allows for any beginner or any type of long term investor to get started by allowing you to buy ETF’s with fractional shares for FREE on any of their ETF products.
I really believe if want to do well in investing you must keep it SIMPLE to order to achieve long term financial goals.