Banking on the Fundamentals
Looking for quality dividend growers? At TD Asset Management Inc. (TDAM), we've got you covered. Leveraging its strong expertise in fundamental equity investing, TDAM has built an innovative Canadian bank ETF, TD Canadian Bank Dividend Index ETF (TBNK), providing more options and opportunities for investors.
For more information on TD ETFs and ETFs in general, visit our TD ETF Resource Centre.
Not All Bank ETFs Are Created Equal
-
TDAM Talks ETFs: TBNK - Banking on the Fundamentals
TBNK offers investors an opportunity to invest in the largest Canadian banks (the "big six") – TD Bank, RBC, BMO, Scotiabank, CIBC and National Bank – using a differentiated weighting approach based on dividend growth. Companies that pay consistent and growing dividends are typically more stable with less volatility in stock prices.
Reasons to Invest
- Tax-Efficient Income: The Canadian banks have historically been able to provide stable and growing income through tax efficient Canadian Eligible Dividends.
- Quality Focused: TBNK can be a core building block for any portfolio, providing investors stable growth and income over the long-term.
- Differentiated Weighting Methodology: TBNK tracks an index which uses a methodology that puts more weight in issuers with higher dividend growth – an effective strategy for building wealth.
- Diversified Bank Exposure: Gain exposure to the largest Canadian banks in one easy, cost-effective solution and avoid the hassle of picking individual stocks.
Why Canadian Banks?
Canadian banks are key pillars in the Canadian economy. They participate in the growth of the country by lending and facilitating transactions across all industries. The Canadian banking sector's future looks bright as they stand to benefit from efficiency improvements, immigration, and acquisition opportunities. Notably, Canadian banks have historically paid attractive dividends and grown these dividends consistently over time. Canadian bank stocks can provide quality growth and income for investor portfolios over the long term.
Key Facts
|
TSX Ticker
|
TBNK
|
|
Name
|
TD Canadian Bank Dividend Index ETF
|
|
Benchmark
|
Solactive Canadian Bank Dividend Index (CA NTR)
|
|
Management Fee (%)
|
0.25
|
|
Risk Rating
|
Medium-High
|
|
Distribution Frequency
|
Monthly
|
|
Expected Distribution Yield (%)
(As of December 31, 2023) |
5.1
|
TBNK Additional Resources
- Banking on the Banks: Should all Canadian bank ETFs be painted with the same brush?
Fund Card
WAYS TO INVEST WITH US
Below are some options to invest in TD ETFs within TD. If you are not a client of TD or already work with an investment professional, feel free to ask them about our ETF lineup.
TD Direct Investing
(Do-It-Yourself)
Canada's Largest online brokerage, with industry leading research tools and market research insights
TD Advisor
(With an Advisor)
TD offers a one-to-one relationship with a dedicated TD Wealth advisor.
The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance.
Commissions, management fees and expenses all may be associated with investments in exchange-traded funds (ETFs). Please read the prospectus and ETF Facts before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. Index returns do not represent ETF returns. The indicated rates of return are the historical total returns for the periods including changes in unit value and reinvestment of all distributions and do not take into account redemption, commission charges or income taxes payable by any unitholder that would have reduced returns. Past performance may not be repeated.
The TD Canadian Bank Dividend Index ETF is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Solactive Canadian Bank Dividend Index (CA NTR) ("the Index") and/or any trade mark(s) associated with the Index or the price of the Index at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank.
® The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank