TD Bank announced last month that it is getting out of the ETF business. TD currently has four Canadian equity index ETFs:
- TTF, which tracks the TSX Composite Index.
- TCF, which is the capped version of the TTF.
- TAG and TAV, the growth and value versions of the Composite.
It is easy to see why: even TTF, the largest ETF from TD Bank has a very low volume and less than a thousand shares change hands on an average day and a lot of days have no trades at all. In contrast, the iUnits S&P TSX 60 Index fund (XIU) offered by Barclays trades an average of a million shares a day. Also, TTF has just $200 million in net asset value, while the XIU has over $7 billion. Given the low traction of its ETF products and Barclays recent changes to the investment objective of the XIC to track the TSX Composite Index, TD probably decided to pull the trigger.