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Investor Knowledge + 5 Minutes = New Thinking
In a recent blog, we heighted the Market Perspectives - The Year Ahead 2024 where the TD Wealth Asset Allocation Committee (WAAC) shared its view on the current market environment and its position on key asset classes. Armed with these insights, the "do-it-yourself" investor crowd (who prefer to build their own portfolios) have the info they need to make informed investment decisions. This is however, only half the battle.
Once you have the knowledge, then investors need access to the right tools (investment solutions) to execute the plan. As a leading investment manager, TD Asset Management Inc. (TDAM) offers investors access to one of the broadest investment offerings in Canada, including a wide variety of active and passive Exchange-Traded Funds (ETFs) and alternative investments. For this blog, we will review the WAAC views on various asset classes and geographies and provide solutions to help express those views in your portfolio.
Canadian Equities (neutral): The full effect of higher rates on the consumer and real estate markets remains to be seen. As such, the WAAC anticipates that the Canadian economy will slow in 2024. However, strong free cash flows within the Energy sector, and relatively inexpensive Financials stocks, may present attractive opportunities.
- TD Canadian Equity Index ETF (TTP): To help provide exposure to the broad Canadian equity market in a low-cost passively managed fund.
- TD Canadian Bank Dividend Index ETF (TBNK): The ETF offers investors an opportunity to invest in the largest Canadian banks at currently attractive valuations – using a differentiated weighting approach based on dividend growth.
- TD Q Canadian Dividend ETF (TQCD): This ETF can add quality Canadian dividend-paying companies to your portfolio managed using a tested quantitative methodology that does not sacrifice total returns and includes a strong risk focus to help ensure a well-diversified portfolio.
U.S. Equities (modest overweight): The WAAC believes earnings growth is starting to stabilize/show signs of positive momentum and that valuations are more consistent with a slowing growth environment. The year-to-date returns on U.S. equities have been led by a few mega cap stocks. Valuations for the rest of the U.S. equity market are reasonable, which offers potential support for the stock market, even in a modest economic slowdown.
- TD U.S. Equity Index ETF (TPU): To help provide exposure to the broad U.S. equity market in a low-cost passively managed fund.
- TD Q U.S. Small-Mid-Cap Equity ETF (TQSM): Valuations for small & mid cap stocks is currently attractive, when compared to large cap stocks. TQSM aims to provide exposure to a diversified portfolio of small- and mid-cap U.S. companies. By using a quantitative multi-factor approach which seeks to optimize exposure to stocks that are expected to outperform the market by emphasizing certain style factors.
International Equities (modest underweight): International stocks have rallied this year but are challenged by weaker corporate returns and slowing macroeconomic conditions, particularly in Europe. Given this view, we feel that further gains will be more limited.
- TD International Equity Index ETF (TPE): Get exposure to mid- and large-cap stocks in the European, Asian and Far East regions in a low-cost passively managed fund.
- TD Q International Low Volatility ETF (TILV): An ETF of international stocks that utilizes proprietary models which consider the volatility of individual stocks and the correlation between stocks to help create low volatility portfolios that seek to minimize risk.
Alternatives (neutral): Investor appetite within infrastructure remains strong, particularly for energy transition investments and critical infrastructure sectors that tend to generate stable, growing cash flows. In real estate, Canada’s growing demographic profile continues to be supportive of domestic real estate, particularly multi-unit residential. Office properties continue to experience leasing and valuation headwinds and a flight to quality, while fundamentals remain sound across the other property types.
- TD Active Global Infrastructure Equity ETF (TINF): This actively managed ETF invests in publicly listed infrastructure companies from the U.S., Europe, Asia-Pacific and Canada with a focus on not just traditional infrastructure but new age infrastructure as well like servers, payment platforms and exchanges.
- TD Active Global Real Estate Equity ETF (TGRE): An active solution that seeks to provide regular income and growth through investments in real estate companies around the world.
Fixed Income (modest overweight): As the normalization of inflation appears to be slowing alongside waning economic growth, the Bank of Canada (BoC) continues to debate the need to further tighten monetary policy and to reinforce its higher-for-longer policy rate path. On the flipside, this may also imply higher for longer income returns within the asset class. The WAAC continues to believe that fixed income will likely outperform equities over the next 12 months and that bonds can still provide diversification benefits, reduce overall portfolio volatility, and preserve capital.
- TD Canadian Aggregate Bond Index ETF (TDB): As the economy slows, invest in government securities in the long end of the curve to take advantage of duration. TDB can be utilized to get broad exposure to Canadian investment grade government and corporate debt.
- TD Select Short Term Corporate Bond Ladder ETF (TCSB): The fund invests in a laddered portfolio of corporate bonds, with 1-5 years of maturity. Leverage the expertise of the TDAM credit team as they actively manage credit and interest rate risk to deliver an optimal bond portfolio.
Cash & Equivalents (modest underweight): In recent months, the yield on cash and equivalents has risen alongside further rate hikes from the BoC. As key economic data continues to normalize, the risks of additional monetary policy tightening are now more balanced. The WAAC anticipates that other asset classes may present better opportunities for long-term returns.
- TD Select Short Term Corporate Bond Ladder ETF (TCSB): Include this ETF as the short end of a barbell strategy to benefit from higher rates with lower duration.
To view our entire ETF line-up, visit us at td.com/etfs and download our TD ETFs Quick Product Guide.
本文所含信息由道明资产管理有限公司提供,仅供参考。信息出自我们认为可靠的来源。本信息并未提供财务、法律、税务或投资建议。具体的投资、税款或交易策略应根据每位投资者的目标和风险承受能力加以评估。
进行交易所买卖基金投资可能需要负担相关佣金、管理费以及支出。投资前请参阅招股章程和ETF情况概要。 ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.交易所买卖基金单位在证券交易所按市场价格进行买卖,因此收益会因经纪人佣金的支付而减少。
The TD Wealth Asset Allocation Committee ("WAAC") is comprised of a diverse group of TD investment professionals.WAAC的责任是发布季度市场展望,提供有关未来6至18个月市场行情的简明观点。WAAC的预测并非对未来结果的保证,实际市场事件可能与WAAC季度市场展望中明示或暗示的情况存在实质性差异。WAAC市场展望不可取代投资建议。
The TD Canadian Equity Index 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 Index and/or Index trade mark or the Index Price at any time or in any other respect. The Solactive Canada Broad Market Index (CA NTR) is calculated and published by Solactive AG.Solactive AG会尽一切努力确保指数计算正确。 Irrespective of its obligations towards the Issuer, 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 Canadian Equity Index ETF. Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trade mark for the purpose of use in connection with the TD Canadian Equity Index ETF constitutes a recommendation by Solactive AG to invest capital in said TD Canadian Equity Index ETF nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this TD Canadian Equity Index ETF.
Solactive AG并未对道明美国股票指数交易所买卖基金给予保荐、推广、销售或任何其他方式的支持,也未就使用Solactive AG指数和/或与Solactive AG指数相关的任何商标或任何时间点的Solactive AG指数价格所取得的结果提供任何明示或暗示的保证或担保,或提供任何其他方面的明示或暗示的保证或担保。Solactive AG指数由Solactive AG计算并发布。Solactive AG会尽一切努力确保Solactive AG指数计算正确。 Irrespective of its obligations towards TDAM, Solactive AG has no obligation to point out errors in the Solactive AG ndices to third parties including but not limited to investors and/or financial intermediaries of the TD Index ETFs.Solactive AG对Solactive AG指数的发布以及授权用于TD指数ETF的Solactive AG指数或任何与之相关的商标,均不构成Solactive AG建议投资此TD指数ETF的意见,也不以任何方式表明Solactive AG对在TD指数ETF中进行任何投资的保证或意见。
The TD Canadian Aggregate Bond Index 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 Index and/or Index trade mark or the Index Price at any time or in any other respect. The Solactive Broad Canadian Bond Universe TR Index is calculated and published by Solactive AG.Solactive AG会尽一切努力确保指数计算正确。 Irrespective of its obligations towards the Issuer, 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 Canadian Aggregate Bond Index ETF. Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trade mark for the purpose of use in connection with the TD Canadian Aggregate Bond Index ETF constitutes a recommendation by Solactive AG to invest capital in said TD Canadian Aggregate Bond Index ETF nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this TD Canadian Aggregate Bond Index ETF.
本文档中的部分陈述可能包含预测性的前瞻性陈述(“FLS”),其中包含“预计”、“预期”、“打算”、“认为”、“估计”和类似的前瞻性表述或其否定形式。前瞻性陈述基于当前对未来普遍的经济、政治、相关市场因素(例如利率和汇率、股票和资本市场)以及普遍经营环境的预计和预测,并假定不发生税法或其他法律或政府管制方面的任何变动或灾难事件。对于未来事件的预计和预测本身受无法预见的风险和不确定性的影响。此等预计和预测可能在未来并不准确。前瞻性陈述并非对未来表现的保证。实际发生的事件可能与前瞻性陈述明示或暗示的事件存在实质差异。包括上文所述各项因素在内的多个重要因素均可能造成这种背离。您不应在任何程度上依赖于前瞻性陈述。
道明交易所买卖基金由道明银行(Toronto-Dominion Bank)全资子公司道明资产管理有限公司(TD Asset Management Inc.)管理。
道明资产管理有限公司 (TD Asset Management Inc.) 是道明银行 (The Toronto-Dominion Bank) 的全资拥有附属机构。
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