What does currency neutral mean?

Currency neutral just means that it takes into account or “hedges” for your invested currency (your dollar). Hedging means it accounts for any major spike or drop in the currency exchange rates.

What are TD E-Series funds?

TD e-Series funds are index mutual funds, meaning that they follow a passive investment strategy, and are designed to replicate the performance of an underlying stock market index. As an example, for many years, the Canadian equity holdings of TD e-Series funds have mirrored the S&P/TSX index.

How do currency neutral funds work?

A currency-neutral fund protects investors from this risk. Essentially the fund hedges all of its foreign currency exposure back to Canadian dollars. This can be achieved by using derivatives including, but not exclusively, currency forwards, swaps and options.

Does TD have an index fund?

Yes. TD Direct Investing gives you access to a wide variety of investment asset classes including index funds, mutual funds, ETFs, stocks and more.

When would you use a currency neutral fund?

An investor can use a currency-neutral version of a fund or pool to mitigate against the potential losses from a change in exchange rates. Switching to a currency-neutral option will enable you to mitigate the effects of currency risk, yet allow you to continue to reap the benefits of investing in foreign markets.

Is TD E-series still available?

That’s all, folks. Although 2021 again proved the TD e-Series funds can (in theory, anyway) be a good alternative to ETFs, recent changes in the industry are making them increasingly unattractive. As a result, the current edition of my model portfolios no longer includes the e-Series.

What index funds does TD offer?

Top Ten Holdings

• TD Canadian Equity Index ETF* 34.7%
• Royal Bank of Canada 4.0%
• The Toronto-Dominion Bank* 3.6%
• Enbridge Inc. 2.4%
• Canadian National Railway Company 2.3%
• The Bank of Nova Scotia 2.1%
• Canadian Natural Resources Limited 2.0%
• Brookfield Asset Management Inc. 1.9%

How do you do a constant currency analysis?

Constant currencies can be calculated by converting current numbers using the prior period’s average exchange rate, or by adjusting previous numbers to reflect the current year’s exchange rate.

Is currency hedging worth the risk?

As it happens, currency hedging is definitely worth considering when investing in bonds, but is often not justified in the case of equities. Currency risk can have a substantial impact on the portfolio’s total risk exposure.

Why does Apple hedge foreign currency?

The hedges included foreign currency forward contracts to mitigate the impact of FX volatility on operating expenses and monetary assets and liabilities in foreign currencies.

What happened to TD E Series funds?

In 2019, TD announced some changes to its line of index mutual funds (i.e. e-Series Funds). Of note is that the e-Series funds now hold TD-specific ETFs, track slightly different indices, can now be purchased through other online brokerages, and are slightly cheaper than before.

How do I get TD E Series?

There are 2 ways to purchase the e-Series funds:

1. Step 1 – Open a TD Mutual Funds Account. Go to a local TD branch and ask to open a mutual fund account.
2. Step 2 – Mail in the e-Series Funds Account Conversion Form.

Is TD E Series an ETF?

In recent years, the holdings of the TD e-series has changed and now the holdings are TD index-tracking ETFs. They also reduced the management fees and hence the MERs are lower for the TD e-series now.

How do you use constant currency?