Here’s a look at new ETFs for investors

Article Excerpt

This month we consider two new ETFs. The first offers you an actively managed portfolio of global dividend-payers; the second provides investors with some upside exposure to the S&P 500 along with some risk protection. TD Bank launched the TD ACTIVE GLOBAL ENHANCED DIVIDEND ETF (Toronto symbol TGED) in May 2019. This ETF invests in dividend-paying stocks from companies in developed markets around the world. The fund has gathered $10 million since its launch and charges a high 0.70% MER. That reflects the ETF’s active management. The fund selects its holdings based on “…an issuer’s ability to profitably generate and grow free cash flow and its efficiency at allocating capital.” Non-dividend-paying companies may make up to 15% of the overall portfolio, and the portfolio managers may use options to enhance the fund’s income and hedge against foreign currency movements. This gives the fund manager a great deal of control, although investors may be left in the dark. The ETF currently holds 60% of its assets in the U.S.,…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.