TD launches six fixed-income ETFs tied to investment-grade bonds

By Marisa Wong

Los Angeles, April 9 – TD Asset Management Inc. announced the addition of six new actively managed fixed-income exchange-traded funds, the TD Target Maturity Bond ETFs, to its comprehensive fixed-income suite.

The ETFs offer investors a choice of Canadian or U.S. dollar exposure, bond-like maturity, professional management, diversification and enhanced liquidity.

Each of the ETFs seeks to provide regular income and preserve capital by investing primarily in a portfolio of investment-grade corporate bonds, with the TD Target Maturity Canadian Bond ETFs focusing on investment-grade Canadian corporate bonds denominated in Canadian dollars and the TD Target Maturity U.S. Bond ETFs on investment-grade U.S. corporate bonds denominated in U.S. dollars.

As target maturity funds, each ETF has a predetermined, specified lifespan. Therefore, bonds held by an ETF are expected to mature in the same year the corresponding ETF is expected to terminate.

The three new TD Target Maturity Canadian Bond ETFs are the TD Target 2025 Investment Grade Bond ETF (TBCE), TD Target 2026 Investment Grade Bond ETF (TBCF) and TD Target 2027 Investment Grade Bond ETF (TBCG).

The three new TD Target Maturity U.S. Bond ETFs are the TD Target 2025 U.S. Investment Grade Bond ETF (TBUE.U), TD Target 2026 U.S. Investment Grade Bond ETF (TBUF.U) and TD Target 2027 U.S. Investment Grade Bond ETF (TBUG.U).

The ETFs begin trading on the Toronto Stock Exchange on Tuesday.

The investment management firm is based in Toronto.

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