15:54:50 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
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Bank of Nova Scotia
Symbol BNS
Shares Issued 1,209,265,058
Close 2017-03-28 C$ 79.01
Market Cap C$ 95,544,032,233
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Globe says TD misses opportunity on ETF offerings

2017-03-29 07:58 ET - In the News

See In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Wednesday edition that TD Bank recently launched some managed ETF portfolios. The Globe's Andrew Hallam writes that in doing this, TD missed a chance to create a "couch potato" ETF. Tangerine's blended portfolios of index funds show how they might perform. They cost 1.07 per cent a year. That is not cheap by index fund standards, but Tangerine's humility is a potent weapon. It does not juggle its holdings based on speculation; it just rebalances once a year. That is why Tangerine continues to stomp its iShares cousins. The best-performing blended iShares fund over the past five years was the Balanced Growth Core Portfolio. The stock-heavy fund has just 14.8 per cent in bonds. It averaged 7.76 per cent annually over the five years ending Feb. 28, yet it only beat one of Tangerine's blended index funds -- Tangerine's Balanced Income Fund, which averaged 5.36 per cent annually over the same time period. It contains just 30 per cent in stocks, and 70 per cent in bonds. So how could TD raise the bar to beat Tangerine? Simple, says Mr. Hallam: create low-cost couch-potato ETFs. These funds would win because they would cost even less. That is an open goal that TD just missed.

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