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TD Launches ETF Focused on Global Carbon Credit Market

TD Launches ETF Focused on Global Carbon Credit Market

April 18, 2018 - New York, NY. Exterior of TD Waterhouse bank in New York city.

New TD ETF offers investors exposure to a unique and growing asset class that exhibits a historically low correlation to traditional asset classes

TD Asset Management Inc. announced the launch of TD Global Carbon Credit Index ETF, a new low-cost Exchange Traded Fund solution providing investors with global exposure to the growing carbon credit market.

“Governments across the globe have adopted the practice of pricing greenhouse gas emissions to tackle climate change. With this in mind, carbon credits have emerged as an important alternative asset class by putting a price on carbon and creating a market in which companies can trade emissions permits. That’s why we’re proud to launch the TD Global Carbon Credit Index ETF, which provides investors with an opportunity to participate in the energy transition economy via carbon credits,” said Bruce Cooper, Chief Executive Officer, TDAM and Senior Vice President, TD Bank Group.

TD Global Carbon Credit Index ETF seeks to track, to the extent reasonably possible and before the deduction of fees and expenses, the performance of a global carbon credits market index. Currently, TCBN aims to track the Solactive Global Carbon Credit CAD Hedged Index, which measures the investment return of global cap-and-trade carbon emission credits.

“In addition to participating in the transition from fossil fuels to more sustainable energy sources, we expect positive returns from the carbon credit market as well as added diversification benefits within a portfolio,” added Cooper. “This new ETF offers investors a convenient and low-cost way to participate in a unique market that benefits from the increase in the price of carbon.”

See related article: TD Launches 5th TD Ready Challenge Focused on Equity-Based Solutions for Climate Change

Features of this innovative TD ETF include:

  • Exposure to an Attractive Growing Market: The carbon credit market has seen incredible growth in both trading volumes and carbon prices, and is expected to maintain above-average, long-term growth
  • Diversification and Growth Opportunities: Carbon credits have exhibited a historically low correlation to traditional asset classes such as fixed income and equities and offer exposure to the energy transition economy
  • Low-Cost Structure: TCBN’s competitive management fee of 0.65% makes it one of the lowest in North America for this asset class

Additional information about TD Global Carbon Credit Index ETF, including the prospectus and ETF Facts, can be found at www.TDAssetManagement.com. Information about the complete suite of TD ETFs is also available on the TD ETF Resource Centre.

Commissions, management fees and expenses all may be associated with investments in exchange-traded funds (ETFs). Please read the prospectus and ETF Facts before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns.

The TD Global Carbon Credit Index ETF is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Solactive Global Carbon Credit CAD Hedged Index (“Index”) and/or any trade mark(s) associated with the Index or the price of the Index at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards TDAM, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the TD ETF. Neither publication of the Index by Solactive AG nor the licensing of the Index or any trade mark(s) associated with the Index for the purpose of use in connection with the TD ETF constitutes a recommendation by Solactive AG to invest capital in said TD ETF nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this TD ETF.

TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank and are available through authorized dealers.

Source: TD Asset Management


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