TD Global Technology Leaders CAD Hedged Index Fund (TECX)

Overview

The TD Global Technology Leaders CAD Hedged Index ETF is an innovative financial instrument launched and actively managed by TD Asset Management, Inc. This exchange-traded fund (ETF) is designed to provide investors with exposure to the dynamic field of global information technology. Distinguished by its hedging strategy against the Canadian dollar, this ETF aims to mitigate currency risk for Canadian investors. By investing in a mix of direct equity positions and derivatives, the fund captures the growth of technology companies across various market capitalizations, encompassing both growth and value stocks. Its primary objective is to mirror the performance of the Solactive Global Technology Leaders Hedged to CAD Index (CA NTR), ensuring a focused yet diversified investment in the technology sector. The fund is strategically domiciled in Canada, offering domestic investors a convenient vehicle to gain global technology market exposure while addressing the volatility associated with currency fluctuations.

Products and Services

• Direct Equity Investments

This component allows the TD Global Technology Leaders CAD Hedged Index ETF to hold shares directly in leading technology companies across the globe. By owning shares of individual companies, the fund participates directly in the financial outcomes of these entities, benefiting from both dividends and capital gains.

• Derivatives

The fund employs derivatives as part of its investment strategy to enhance returns, manage risk, or gain exposure to certain assets without directly owning them. This can include instruments such as futures, options, or swaps, which are linked to the performance of technology stocks or related indices.

• Hedging Strategies

Given its CAD-hedged nature, the ETF implements financial strategies to mitigate the impact of currency fluctuations between the Canadian dollar and the currencies in which its holdings are denominated. This is particularly important for Canadian investors looking for exposure to global technology stocks without the added risk of currency volatility.

• Growth and Value Stock Investments

The ETF does not limit itself to a single type of stock, instead it seeks to balance its portfolio between growth stocks, which are expected to grow at an above-average rate compared to the industry, and value stocks, which are believed to be undervalued in comparison to their intrinsic value. This balanced approach aims at diversification and risk management.

• Index Tracking

The ETF seeks to track the performance of the Solactive Global Technology Leaders Hedged to CAD Index (CA NTR), which is a benchmark index representing the performance of technology leaders on a global scale, adjusted for the Canadian dollar’s value. This ensures that the fund’s performance is aligned with the broader technology market trends adjusted for Canadian investors.