TD Active Preferred Share ETF

TD Active Preferred Share ETF is an exchange-traded fund that focuses on investing in preferred shares, a unique asset class that combines features of both equity and fixed-income securities. Managed by TD Asset Management, the ETF aims to provide diversified exposure to Canadian preferred shares with an objective of generating regular income. Notable for its actively managed strategy, this ETF seeks to capitalize on price discrepancies and investment opportunities within the preferred share market. The fund’s primary function is to offer investors a way to gain exposure to preferred shares, which typically provide higher dividend yields compared to common shares, while also maintaining a relatively stable value. The ETF plays a significant role in the financial market by catering to income-focused investors, including those interested in tax-efficient income, as preferred dividends typically have a favorable tax treatment in Canada. As a part of the Toronto-Dominion Bank's suite of investment products, this ETF is particularly significant for individuals seeking to enhance portfolio yield and stability through diversified exposure to high-quality preferred securities issued by established corporations across various sectors.