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 …
Which Vanguard asset allocation portfolio should you invest in?
The TD one-click portfolios
The portfolios are offered at 3 levels of risk. Here are their ticker/ticket symbols and target weights.
Ticker TOCC …
TD one-click Conservative Portfolio – 30% stocks and 70% bonds
Ticker TOCM …
TD one-click Moderate Portfolio – 60% stocks and 40% bonds
Ticker TOCA …
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 …
Vanguard asset allocation ETFs.
The management fee for the TD One-Click portfolios has been reduced from 0.25% to 0.15%. That now makes them most cost-effective series of asset allocation ETFs in Canada. While the TD sites (and fund descriptors) have not been updated, it is reported that they will swap out some of the active ETFs for index-tracking ETFs. Cheaper ETFs in the mix means cheaper total fees for the TD One Click Portfolios.
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.
And check out EQ Bank for those who want to make their cash work a lot harder. The current high interest savings account rate is 1.5%. They also offer GICs.
While I do not accept monies for feature blogs please click here on the mission and ‘how I might get paid’ disclosures. Those affiliate partnerships help me pay the bills for this site.
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Dale
Hi Dale,
Thanks for this. I too am intrigued by these recent offerings from TDAM, and am contemplating a wholesale switchover. I DIY 6 accounts with TDDI. I particularly like the de-emphasizing of financials to the favour of technology. I am however a bit perplexed that TDAM didn’t bring in the MER commensurate with the “one-ticket” (click) competitors. Do you think the complexity of the underlying holdings, 15 instead of 5 or 6, is the reason for the additional .05% on the MER? Is the increased diversification, in anticipation of somewhat better returns, likely to offset it?
Regards
Hi Rob, they do have some holdings with some higher MERs. All said, any difference or benefit in assets will quickly overcome any .05% additional MER. If you like the portfolio, I’d suggest you do not let the MER get in the way. 🙂
Dale
Hi Dale,
I regularly read your blog and like your perspective and thought process on investing. I’m a longtime TD client, so thank-you for posting this article. I currently hold individual US and CDN dividend stocks in my RRSP, VGRO in a LIRA account, & having paralysis by analysis on deciding what to do with my TFSA. I like the simplicity of an asset allocation fund and would like something that offers growth and/or includes Tech/Healthcare or FANG stocks and also like that the TD fund includes US treasuries. What are your thoughts on the TD one click portfolio versus XBAL or Horizons in either a TFSA or CDN RRSP account?
Hi Michelle, the Horizons one ticket funds and the TD funds offer the growth kicker and US treasuries. The Horizons funds are Canada’s best performing one ticket funds in their brief history (and they would have been best performing funds from Vanguard or BMO one ticket inception as well based on back tests). The Horizons one ticket funds are total return (almost entirely swap based) and are more tax efficient.
They are all great funds. TD and Horizons might be just a little bit ‘better’. Horizons might get the gold star from me, but this is not investment advice 🙂
Dale
Yes the Horizon funds have better performance but their percentage of stocks is a lot higher. You need to compare the performance of funds with the same percentages of stocks/ bonds as a higher percentage of stocks could lead to higher losses during market corrections.
Yup, that will be in my post. But the better bonds (US Treasuries) do the trick.
It’s is about the new Balanced Portfolio. The new 60/40.
Dale
Thanks for the overview on the one-click portfolios. I use the e-series funds for my kids RESPs, but I’m going to look into switching. I wonder if TD customers will be able to purchase those without a fee.
Hi Gord. No, the fee is embedded within the ETF and underlying ETFs. And of course on TD Waterhouse we’ll have that purchase fee. They trade like stocks.
All said, the fees are incredibly low compared to mutual funds of course. And the fees will be lower than the e-series.
Please let me know how you make out.
Hi Dale,
I currently have a TD balanced growth mutual that I would like to switch into a ETF. If you had to choose between the TD one click offers or the e-series would you have a preference? I’m also research some of Vanguards ETF’s.
Appreciate any thoughts you could provide.
Hi Dale,
Do you have a preference to the TD one click options or the E-series? I have a TD comfort growth mutual and would like to change it over to something with less fees. I’m also looking at some of Vanguards options.
Thanks
Chad
Hi Chad, sorry for the delay. I’d be more of a fan of the TD One Click. It’s cheaper, has greater asset allocation IMHO, and it’s managed for you. Happy to help.
The TD Comfort stuff is not good.
Dale
Waited forever for EQ Bank to finally provide joint accounts. Now we are not able to buy GIC’s in joint names but only the primary account holders name. Defeats the whole estate planning process as it could trigger a probate issue upon first to die because of only that one GIC. It’s the ownership the minute you die, not when the funds return to the joint ownership account, sometime later. Correct me! Wayne
Thanks Wayne, I will check with them.
Dale
You say that you will unlikely to be offered TD e-Series Funds and probably the new Portfolio ETFs in the old brick and mortar branches, This reflects the lack of knowledge at the branches about simple investing tactics.. With the understandable emphasis on online banking due to Covid this is likely to be even more so..
Hi Dr. Mike, it is very easy to buy your own one ticket ETF portfolio, or one click from TD. Please let me know if you need any assistance or guidance. I’m happy to help.
Dale