Canadian investors generally have a more difficult time adding technology exposure to their portfolios than their global counterparts. There are a number of reasons for this.
Among these, the lack of Canadian options in the large cap, blue-chip technology sector continues to be problematic for those seeking decent risk-adjusted returns. In this article, I’m going to discuss one Exchange Traded Fund (ETF) that can help alleviate this issue for Canadian investors.
The TD Global Technology Leaders Index (TSX:TEC) holds a wide range of global technology leaders. This fund spreads out the concentration risk many Canada or U.S.-based funds would otherwise provide. By including various emerging markets and European players into the mix, North American investors can benefit from a wider degree of diversification and greater risk-adjusted returns over time.