TD Asset Management launches two new ESG corporate bond ETFs

By Marisa Wong

Los Angeles, Nov. 30 – TD Asset Management Inc. announced the launch of two new environmental, social and governance (ESG) exchange-traded funds.

TD Morningstar ESG Canada Corporate Bond Index ETF (TSX: TMCC) and TD Morningstar ESG U.S. Corporate Bond Index ETF (TSX: TMUC) seek to track the performance of corporate bond indexes that measure the investment return of fixed-income securities from issuers that exhibit higher ESG ratings relative to their peers.

TD Asset Management used research from Morningstar, Inc. and Sustainalytics to build the new ESG ETFs. Specifically, the index methodology used for the two ESG ETFs eliminates companies with specific product involvements such as tobacco, small arms and controversial weapons, while including companies that have low ESG risk ratings.

The latest launch follows the 2020 launch of three sustainable ESG ETFs and two sustainable mutual funds.

TD Asset Management also announced on Tuesday the launch of its new TD Global Technology Innovators Index ETF (TSX: TECI), which seeks to track the performance of a technology innovators index. The index measures the investment return of technology companies that are deemed to be innovators based on higher annual growth rates in revenue, return on invested capital and operating margin expansion relative to their peers, while eliminating mega-cap technology stocks that may represent a large component of a particular index.

The investment management firm is based in Toronto.

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