Toronto-Dominion Returns to Canadian ETF Market With Six Funds

Toronto-Dominion Bank is returning to the exchange-traded funds market after a decade-long absence with six ETFs, tapping an industry that’s almost doubled in four years.

The bank’s TD Asset Management unit started selling ETFs tied to fixed-income and equity markets in Canada, the U.S. and abroad, the Toronto-based firm said Wednesday in a statement. Management fees are from 0.07 percent to 0.18 percent. The funds trade on the Toronto Stock Exchange.

“Our goal is to bring new thinking to the table and create solutions that meet the changing needs of our clients," Tim Wiggan, chief executive officer of TD Asset Management, said in the statement. “With our longstanding experience managing ETFs for institutional clients, this is a natural extension of our offerings by providing more choice and flexibility to investors."

Toronto-Dominion joins Bank of Montreal and Royal Bank of Canada in selling its own ETFs. TD was the first Canadian bank to offer the securities in 2001, before shutting down the business in 2006 due to lack of investor interest.

About C$88.9 billion ($68.1 billion) of ETFs are now traded in Canada, with BlackRock Inc.’s iShares Canada the leader with a 51 percent market share, according to February data from the Canadian ETF Association. That’s up from C$47.9 billion in February 2012.

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