TD Asset Management joins the asset allocation ETF game with the TD one-click portfolios. Welcome to the team. These portfolios are a wonderful addition to the TD ETF line up. As many of us in the investment blogosphere have suggested, the asset allocation ETF portfolios are game changers.
As a background for those who are new to the one ticket game, these are more complete ETF managed portfolios that one can purchase with one click. By way of a discount brokerage, you enter one ticker symbol and instantly hold a diversified portfolio of Canadian, US and International stocks and bonds. And these diversified asset allocation portfolios are available at various risk levels.
For some guidance on how to select the right one ticket, er make that one-click portfolio here’s …
The TD one-click portfolios.
The portfolios are offered at 3 levels of risk. Here are their target weights.
TD one-click Conservative Portfolio – 30% stocks and 70% bonds
TD one-click Moderate Portfolio – 60% stocks and 40% bonds
TD one-click Aggressive Portfolio – 90% stocks and 10% bonds
The portfolios use TD ETFs. It’s an interesting mix that includes a global tech ETF growth kicker, some dividend and low volatility focus, and US treasuries on the bond side. I’m a fan.
The TD Global Technology Leaders ETF is off to a roaring start. Here’s the brief returns history. You’ll see though that the fund is dominated by the US tech giants.
On the stock side we see a slight overweight to US equities, followed by a near even mix of Canadian equities and International stocks. For example, here’s the asset mix for the conservative portfolio.
Here are the stock ETFs employed in the portfolio.
- TD Global Technology Leaders
- TD US Equity Index
- TD US Small Cap
- TD International Index
- TD Global Multifactor
- TD Global Dividend
- TD Canadian Index
- TD Canadian Low Volatility
And the fixed income ETFs.
- TD Canadian Aggregate Bond
- TD Canadian Long Term Bond
- TD Select Short Term Bond Ladders
- TD Active US High Yield Bond
- TD US Long Term Treasuries
- TD Advice Global Income
It will be interesting to watch these portfolios moving forward. They go off script just slightly with the growth kicker and US treasuries. That is a strategy employed by Horizons total return one ticket offerings. And again the TD options also include low volatility and dividend focused ETFs. They may be able to deliver better risk adjusted returns compared to the leading one ticket offerings.
Cut The Crap Investing will keep score.
All said, all of the one ticket offerings are a giant leap forward for investor kind. Here’s my reviews of …
The management expense ratio for the TD portfolios is .25%. That is certainly in line with the one ticket universe.
On the shelf, but on offer?
This a wonderful move by TD asset management. And it’s a recognition that investors do want comprehensive and low fee portfolio solutions. Every financial institution that has investment offerings needs this type of model on the shelf.
TD has the low fee e-series index funds. But as I ‘joked’ on Twitter you’d have more chance of strolling through the front doors of Buckingham Palace than walking into a TD branch and being offered the e-series. They are on the shelf but they are hidden behind the high fee funds.
Of course the TD one click portfolios are not likely to be top of mind for TD advisors.
Spread the word. Wonderful TD portfolios are just one click away.
If you want advice and lower fee managed ETF portfolios, look into the Canadian Robo Advisors.
Canada’s top-ranked discount brokerage.
Cut The Crap Investing readers can sign up with Questrade (Canada’s top-ranked discount brokerage) through this partnership link. You can buy ETFs for free.
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