Toronto-Dominion Bank

A: Preferred shares behave more like long-term fixed-income instruments rather than short-term instruments. So while short-term interest rates are still relatively low, the outlook for long-term interest rates is less certain.

The underlying credit quality of preferred share issuers can be a negative factor in some cases; for example, when the issuer’s share price is falling.

So unlike GICs, which don’t fall in value, the prices of preferreds can decline along with stock markets.

If you want to own a preferred share as part of the fixed-income segment of your portfolio, and you can accept some risk, then preferreds are okay to hold....

A: iShares Canadian Financial Monthly Income ETF, $6.82, symbol FIE on Toronto (Units outstanding: 90.1 million; Market cap: $614.5 million; www.blackrock.com/ca), invests primarily in common shares, preferred shares, corporate bonds and income trusts of firms in the Canadian finance industry.

The fund has an MER of 0.93%, which is high by ETF standards....

The shares of Canada’s big five banks have moved down recently, mainly due to fears that a slowing economy and rising interest rates will cut demand for new loans. However, each of the five continue to lower their costs and expand outside of Canada. That should spur their future earnings and dividends.


TORONTO-DOMINION BANK $68 (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.8 billion; Market cap: $122.4 billion; Price-to-sales ratio: 3.4; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.td.com) gets 56% of its earnings from its Canadian retail business....

The six ETFs we update below mainly hold high-quality stocks that are widely traded on Canadian and U.S. exchanges. Each fund tracks the performance of a major stock market index. That’s different from ETFs focused on narrower indexes or themes such as cryptocurrencies or biotechnology.


Of course, you pay brokerage commissions to buy and sell these investments....

The Bank of Canada increased its benchmark interest rate in October 2018 from 1.50% to 1.75%. That rate could rise further in 2019 depending on economic growth and the level of unemployment.


We continue to caution against investing in bonds. Today’s still-low interest rates make them unattractive, and rising interest rates will push down their future value....

TD Bank reported higher earnings in the latest quarter for both its Canadian and U.S. businesses. The bank continues to expand; its recent $729 million acquisition of Regina-based wealth management firm Greystone Managed Investments now makes it Canada’s largest wealth management firm....

ISHARES S&P/TSX 60 INDEX ETF $22.97 (Toronto symbol XIU; TSINetwork ETF Rating: Conservative; Market cap: $8.6 billion) is a low-fee way to buy the top Canadian listed stocks. Specifically, the ETF holds stocks that represent the S&P/TSX 60 Index—the largest, most heavily traded equities on the TSX.


The ETF’s top holdings are Royal Bank, 8.8%; TD Bank, 8.5%; Bank of Nova Scotia, 5.6%; CN Rail, 5.0%; Suncor Energy, 4.8%; Enbridge, 4.2%; Bank of Montreal, 4.0%; Canadian Imperial Bank of Commerce, 3.2%; and Canadian Natural Resources, 3.1%.


The industry breakdown is as follows: Financials (39%), Resources (29%), Industrials (11%), Telecommuncations (7%), Consumer discretionary (4%), Consumer staples (4%), Information technology (4%), Utilities (2%) and others (1%).


The S&P/TSX 60 Index mostly consists of high-quality companies....

A fintech stock typically offers financial services, or services to the financial industry, and working towards efficiency through the use of technology. Here’s how to spot the best ones.

TORONTO-DOMINION BANK $73.41 (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $134.1 billion; TSINetwork Rating: Above Average; Dividend yield: 3.7%; www.td.com) is Canada’s second-largest bank, with total assets of $1.26 trillion.


The bank continues to invest in its digital operations—online and mobile banking.


In Canada, 81% of TD’s clients now process their transactions online or through an ATM....

The six ETFs we update below mainly hold high-quality stocks that are widely traded on Canadian and U.S. exchanges. Each fund tracks the performance of a major stock market index. That’s different from ETFs focused on narrower indexes or themes such as cryptocurrencies or biotechnology.


Of course, you pay brokerage commissions to buy and sell these investments....