Take Canada for instance. Investors who solely invest in Canadian equities will naturally be over exposed to Financials, Energy and Materials, while having little to no exposure to Technology, Healthcare, and Consumer Discretionary sectors. In addition, some industries are very localized or concentrated in a specific region for varying reasons. Take luxury goods for example. Premium, high-end, heritage luxury brands are typically situated in the European epicenters of Italy and France.

For investors, extending their geographic reach can unlock opportunities that are otherwise inaccessible and can gain exposure to industries and businesses across the world, improving portfolio diversification and the overall risk profile of a portfolio. The challenge however is how to gain access to this vast universe of growth opportunities without "breaking the bank" and the hassle of managing a complex portfolio.

An easy and cost-effective way to gain access to global markets is through index investing. While an investor can buy each index themselves via individual ETFs, a portfolio of index tracking ETFs is a simple way to get exposure across multiple indices in a single solution, at a low cost, and with rebalancing between the indices done for you.

Delivering on the options

TDAM has a broad and extensive lineup of ETFs, to help investors construct a well-diversified portfolio. For those that want to take a hands-off approach, investors can consider all-in-one ETF solutions - single ticket solutions that can provide investors with a diversified exposure to stocks and bonds.

Introducing the TD All-Equity ETF Portfolio (TEQT)

TDAM recently launched the new TD All-Equity ETF Portfolio (TEQT). TEQT is an all-in-one solution that helps make equity investing easy. TEQT invests primarily in units of ETFs managed by TDAM that provide exposure to broad based equity markets. Some of the key features and benefits of TEQT include:

• Convenience - TEQT is a simple and efficient way to gain exposure to a broad array of equities in one convenient package.
• Low cost - A low-cost solution offering one of the lowest management fees compared to key competitors.
• Rebalancing – The portfolio will be rebalanced on a quarterly basis to bring the allocation back to the desired asset mix and geographic mix.
• Streamlined portfolio structure – TEQT consists of only three underlying holdings making it easier to understand for investors.
• Equity exposure – 100% equity exposure will allow the highest opportunity for capital growth, better aligning with the risk appetite of many investors comfortable the volatility of the stock market in exchange for potentially higher returns.
• Higher U.S equity exposure compared to key peers – TEQT will maintain a higher weight in U.S equities, which will be positioned to potentially outperform and gain a competitive edge during favourable market conditions.

Visit the TD ETFs solutions page for more information.