TEC ETF – Investment objective
The TD Global Technology Leaders Index ETF aims to mirror the performance of a global equity index that tracks mid- and large-cap tech companies worldwide. It seeks to replicate the Solactive Global Technology Leaders Index (CA NTR) or a potential successor. To achieve its goal, the fund managers plan to invest in a selected subset of securities from the relevant index. TEC fund manager may also explore other securities for exposure. Additionally, TEC can hold cash or equivalents to meet its obligations.
What’s the Solactive Global Technology Leaders Index (CA NTR)?
The Solactive Global Technology Leaders Index is comprised of traditional tech companies and others from different subsectors involved in disruptive technologies. Disruptive technologies are innovations or advancements that significantly alter or revolutionize traditional industries, business models, or products, often creating new markets or fundamentally changing existing ones. These technologies typically introduce novel approaches, efficiencies, and functionalities, causing a paradigm shift and challenging established norms within the industry.
This includes, but isn’t confined to, global companies in tech themes like Cybersecurity, IoT, E-Commerce, Robotics & Automation, AI, Autonomous Vehicles, and Cloud/Big Data. The Index, published in Canadian Dollars, comes in Price Return, Net Total Return, and Total Return variants.
Why you should consider adding Tech ETFs such as TEC to your portfolio?
Adding tech ETFs to your portfolio can be a savvy move for several reasons. Firstly, the technology sector has historically shown strong growth potential, making it a compelling choice for investors seeking capital appreciation. Tech companies often innovate and adapt quickly to market trends, potentially leading to higher returns.
Secondly, tech ETFs provide diversification by offering exposure to a broad range of technology-related companies. This diversification helps spread risk, reducing the impact of poor performance from a single stock or subsector on your overall portfolio.
Moreover, the tech industry is at the forefront of global innovation. Investing in tech ETFs allows you to participate in groundbreaking developments such as artificial intelligence, cybersecurity, and other transformative technologies that are shaping the future.
Additionally, tech ETFs are known for their liquidity and ease of trading on the stock market. This liquidity provides flexibility, allowing investors to buy or sell shares easily.
High dividend ETF in Canada (Top 11 paying over 6%)
Historical performance vs Similar ETFs
Historical performance – TEC ETF
Impressive numbers all around! TEC.TO has a robust year-to-date return at 34.54%, showcasing its strong performance in the short term. ZQQ.TO and XQQ.TO are neck and neck in year-to-date returns, both exceeding 33%, reflecting their consistent positive momentum.
In the longer term, over the past three years, TEC.TO and ZQQ.TO maintain closely competitive average returns at 8.35% and 8.34%, respectively. Meanwhile, XQQ.TO slightly outshines with an average return of 8.39%.
For the five-year average return, XIT.TO takes the lead with an impressive 16.80%, indicating strong performance and potential long-term growth. ZQQ.TO and XQQ.TO also exhibit healthy five-year averages, emphasizing their sustained positive trends.
MER – TEC ETF
The Management Expense Ratio (MER) for the TEC ETF stands at 0.39%. This ratio includes various costs associated with managing the fund, such as administrative expenses, advisory fees, and operational charges. A lower MER is generally favorable for investors, as it means a smaller portion of their investment is allocated to covering these expenses, leaving more potential returns. It’s essential for investors to consider the MER along with other factors when evaluating the overall cost and performance of the ETF.
Top 10 Best Growth ETF in Canada!
TEC ETF Portfolio of holdings
Top Ten Holdings
| Apple Inc – Common | 13.89% |
|---|---|
| Microsoft Corp – Common | 12.63% |
| Amazon.com Inc – Common | 6.23% |
| NVIDIA Corp – Common | 5.62% |
| Alphabet Inc – Common Cl A | 4.32% |
| Alphabet Inc – Common Cl C | 3.74% |
| Tesla Inc – Common | 3.71% |
| Meta Platforms Inc – Common Cl A | 3.68% |
| Visa Inc – Common Cl A | 2.06% |
| Broadcom Inc – Common | 1.85% |
