TEC:CA is the top Canadian ETF for broad-based, liquid U.S. tech and AI exposure, tracking the Solactive Global Technology Leaders Index. TEC:CA offers strong liquidity, low fees (0.39% expense ratio), and effective benchmark tracking, outperforming less liquid Canadian tech ETFs. Entering Q2 earnings, robust ad spend, resilient consumer demand, and flexible big tech CapEx position TEC:CA for continued strength despite macro/geopolitical risks.
During the fourth quarter, the Harbor Transformative Technologies ETF returned 1.88% (NAV), underperforming its benchmark, the Nasdaq 100 Total Return Index, which returned 2.47%. Harbor Transformative Technologies ETF holdings in Information Technology and Communication Services underperformed, while holdings in the Consumer Discretionary sector and the electronic equipment industry added value. Taiwan Semiconductor shares rose on record profitability as AI demand continues to exceed expectations.
TD Global Technology Leaders Index ETF is the top broad-based, low-fee Canadian tech ETF for U.S. tech and AI exposure. TEC:CA offers strong liquidity, a reasonable 0.39% expense ratio, and closely tracks its benchmark with leading holdings in NVDA, MSFT, and AAPL. TEC:CA outperforms peers like FHQ:CA and XQQ:CA, benefiting from its unhedged structure and global large-cap tech focus.
| ARCA Exchange | US Country |
The fund prioritizes investing a minimum of 80% of its net assets, along with any borrowings made for investment purposes, in securities held by companies categorized as “transformative technology” firms. These are entities across various sectors that the Subadvisor identifies as having significant growth prospects linked to innovative and transformative technologies. Notably, the fund operates on a non-diversified basis, focusing its investments on a concentrated selection of high-potential technology companies.
The fund primarily invests in equities of transformative technology companies, believing these firms will drive significant advancements in their respective industries. This focus allows for exposure to high-growth sectors poised for substantial returns.
While the fund inherently targets transformative technology firms, it spans multiple sectors. This diversification helps to mitigate risk while capitalizing on growth potential across various industry landscapes that rely on disruptive technologies.
The fund is managed actively by a Subadvisor, who continually assesses investment opportunities in the market to identify those that align with the transformative technology theme. This proactive approach helps in adapting to changing market conditions and optimizing returns.
The Subadvisor conducts in-depth research and analysis to evaluate potential investments, examining trends, technologies, and company fundamentals. This rigorous analytical process aims to uncover high-performing stocks in the technology space.
In addition to utilizing available assets for investments, the fund may also engage in borrowing to enhance its investment capabilities. This strategy allows for increased holdings in targeted transformative companies that show strong growth potential, albeit with associated risks.