TD Asset Management launches three new Exchange-Traded Funds to help clients invest towards a better tomorrow
7 minute read
7 minute read
TDAM evolves its ETF lineup with the low-cost TD Morningstar ESG Canada Corporate Bond Index ETF, TD Morningstar ESG U.S. Corporate Bond Index ETF and the TD Global Technology Innovators Index ETF
TORONTO, Nov. 30, 2021 /CNW/ - Today, TD Asset Management Inc. (TDAM) announced the launch of three ETFs including two new Environmental, Social and Governance (ESG) Exchange-Traded Funds (ETFs) to its expanding ESG solution suite. TD Morningstar ESG Canada Corporate Bond Index ETF (TMCC) and TD Morningstar ESG U.S. Corporate Bond Index ETF (TMUC) seek to track the performance of corporate bond indexes that measure the investment return of fixed income securities from issuers that exhibit higher ESG ratings relative to their peers.
"At TDAM, we are always looking for more ways to help investors align their investments with sustainable options," said Priti Shokeen, Vice President & Director, ESG Research & Engagement, TDAM. "Our new TD Morningstar ESG Canada Corporate Bond Index ETF (TMCC) and TD Morningstar ESG U.S. Corporate Bond Index ETF (TMUC) offer a convenient, low-cost way to gain exposure to fixed income securities that are investment grade quality and also meet rigorous ESG criteria. At the same time, the ETFs are designed to maintain similar interest rate sensitivity, yield, sector weights and credit quality as their non-ESG screened parent indexes, Morningstar® Canada Corporate Bond IndexTM and Morningstar® US Corporate Bond IndexTM, respectively. As part of a diversified portfolio, they can also complement the popular TD Morningstar ESG Equity Index ETFs that we introduced in December 2020."
TDAM also announced the launch of its new TD Global Technology Innovators Index ETF (TECI), which seeks to track the performance of a technology innovators index which measures the investment return of technology companies that are deemed to be innovators based on higher annual growth rates in revenue, return on invested capital and operating margin expansion relative to their peers, while eliminating mega-cap technology stocks that may represent a large component of a particular index. "This new ETF is a great way to invest in the technology of tomorrow, today," said Dino Vevaina, Vice President & Director and Portfolio Manager, TDAM. "Investors can participate in the growth potential of global companies on the forefront of technology innovation without being overweight in mega-cap tech companies. The ETF can also be used in combination with our popular TD Global Technology Leaders Index ETF (TEC) which offers investors a broader pure-play technology exposure including access to mega-cap tech companies."
"We're so excited to build on our ESG collaboration with TDAM, extending beyond ESG equity indexes to provide our ESG fixed income indexes as well," said Katie Binns, Senior Product Manager, Fixed Income & Multi-Asset Indexes at Morningstar, Inc. "Sustainable investing is a rapidly growing part of investor portfolios and providing a consistent multi-asset lens to ESG risk considerations is increasingly important to clients. Working closely with our colleagues at Morningstar, Sustainalytics and TDAM, we believe we have designed unique indexes to meet the needs of ESG-oriented investors across asset classes."
The following ETFs begin trading on the Toronto Stock Exchange (TSX) today:
TD Morningstar ESG Canada Corporate Bond Index ETF
TD Morningstar ESG U.S. Corporate Bond Index ETF
TD Global Technology Innovators Index ETF
TDAM is pleased to leverage the index construction capabilities and research of Morningstar, Inc., an independent investment and index provider, and Sustainalytics, a Morningstar company and a leading global provider of ESG research, ratings and data, to provide Canadian investors with a premier ESG solution that utilizes a robust screening process. With deep Canadian roots, Sustainalytics serves many of Canada's leading institutional investors who incorporate ESG assessments into their investment processes. The index methodology utilized in our newly launched TD Morningstar ESG Canada Corporate Bond Index ETF and TD Morningstar ESG U.S. Corporate Bond Index ETF eliminates companies with specific product involvements such as tobacco, small arms, and controversial weapons, while including companies that have low ESG risk ratings.
Creating access to sustainable investment solutions for investors continues to be a priority for TDAM. The launch of TD Morningstar ESG Canada Corporate Bond Index ETF and TD Morningstar ESG U.S. Corporate Bond Index ETF follows the 2020 launch of three sustainable ESG ETFs and two sustainable mutual funds. TDAM is also committed to sustainable investing through its TDAM Sustainable Investment Approach, and as an institutional signatory to the Canadian Investor Statement on Climate Change and the Responsible Investment Association's investor statement on diversity and inclusion.
Combined with TD Bank Group's ambitious climate action plan , which includes a target of net-zero greenhouse gas emissions associated with its operations and financing activities by 2050, among other announcements, these initiatives highlight TD Bank Group's continued efforts to offer sustainable products, services and programs to its customers and clients and its commitment to contributing to a more inclusive society.
Additional information about TD Morningstar ESG Canada Corporate Bond Index ETF, TD Morningstar ESG U.S. Corporate Bond Index ETF and TD Global Technology Innovators Index ETF, including the prospectus and ETF Facts, can be found at www.tdassetmanagement.com.
Commissions, management fees and expenses all may be associated with investments in 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.
The Morningstar® Canada Corporate Bond Sustainability IndexTM and the Morningstar® US Corporate Bond Sustainability IndexTM are service marks of Morningstar, Inc. and have been licensed for use for certain purposes by TD Asset Management Inc. The TD Morningstar ESG Canada Corporate Bond Index ETF and TD Morningstar ESG U.S. Corporate Bond Index ETF (collectively, the "TD ESG ETFs") are not sponsored, endorsed, sold or promoted by Morningstar, and Morningstar makes no representation regarding the advisability of investing in the TD ESG ETFs.
The TD Global Technology Innovators Index ETF ("TD ETF") is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Solactive Global Technology Innovators Index (CA NTR) ("Index") and/or any trademark(s) associated with the Index or the price of the Index at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards TDAM, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the TD ETF. Neither publication of the Index by Solactive AG nor the licensing of the Index or any trademark(s) associated with the Index for the purpose of use in connection with the TD ETF constitutes a recommendation by Solactive AG to invest capital in said TD ETF nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this TD ETF.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.
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TD Asset Management Inc. (TDAM), a member of TD Bank Group, is a North American investment management firm. Operating through TD Asset Management Inc. in Canada and TDAM USA Inc. in the U.S., TDAM brings new thinking to investors' most important challenges. 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 $431 billion in assets as at September 30, 2021. Assets under management include TD Asset Management Inc., TDAM USA Inc. and Epoch Investment Partners Inc. (Epoch). All entities are wholly-owned subsidiaries of The Toronto-Dominion Bank.
SOURCE TD Asset Management Inc.