Setting the Gold Standard with TD Asset Management’s Innovative Technology ETF
TEC was pioneered with the intention of tracking the performance of global equity indices, measuring the investment returns of technology-related global mid and large capitalization issuers. Currently, TEC seeks to track the Collective Global Technology Leaders Index (CA NTR), an index that tracks the performance of global mid and large capitalization issuers, including such as Apple, Meta, Amazon, Tesla, NVIDIA and others. Tech giants are involved.
As for the result? Describing TEC as “the gold standard of technology sector ETFs in Canada,” enthuses Needham, “the rise has been a success.”
“It’s one of the top three largest with nearly $1.5 billion in assets under management,” he says. “And our custom index methodology has helped outperform the index that most Canadians follow when investing in technology.”
Building on TEC’s success, late last November, TDAM launched its TD Global Technology Innovators Index ETF (TECI) – which seeks to track an index that is considered innovative based on high annual growth rates. Measures investment returns of technology companies. in revenue, return on invested capital and operating margin expansion relative to its peers, while eliminating the mega-cap technology stocks that typically dominate an index.
“The TECI innovator strategy is the sweet spot in terms of technology and products that are in the early stages of capturing markets,” explains Needham. “We’ve optimized this particular universe of tech stocks — what we call the innovators of the future — based on three key metrics. Revenue growth, margin expansion, and return on capital. And its output is named 100 Pure Play Technology.”
