TDASo is a new ETF for TD Securities that is designed to be a diversified investment fund.
It’s the first time TD Securities has launched an ETF.
The fund, launched by TD Securities on Friday, is aimed at helping investors diversify their portfolio into a variety of asset classes.
“It’s not a fund to be held for a particular asset class,” said TD Securities chief investment officer, Mark Walshe.
TDASo aims to provide an alternative to the traditional investment funds by providing investors with an asset class diversification option.
The fund has the following investment objectives: •Provide diversified fund options, as well as diversified exposure to a range of asset class investments.
•Reduce risk in the fund’s performance by combining multiple ETFs into one.
Investors can use TDASs ETF to trade the TD Securities ETF, and TD Securities is the primary investor.
Diversification options in TDAS offer the investor a range to choose from, such as a fixed-income ETF with a fixed target price or an index fund with a target asset allocation.
A fixed-risk portfolio with TDAS offers a diversification approach that minimises the risk associated with asset classes, such that it does not result in the loss of capital over time.
In contrast, an index-focused portfolio, such a Vanguard-style index fund, can include many different asset classes such as stocks, bonds, commodities, and currencies.
While the fund has no asset class exposure, TDAS allows for the use of different investment strategies, such those used by investors who are trying to diversify the portfolio.
This means that the fund can be used for an asset-class portfolio, as opposed to the index-oriented portfolio that typically is used by index funds.
TD Securities also has an asset allocation strategy that allows for diversification to be achieved, and its index fund offers multiple index fund options.
At launch, TD Securities will invest in over 1,500 securities, including a range from the S&P 500 to the SPDR S&p 500.
TDAS is one of the first ETFs launched by a new fund operator.
