skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. TDB655: I am looking at TD index funds for a youngish person with no interest in investing. [TD U.S. Index Currency Neutral Fund - Inv]
You can view 1 more answer this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am looking at TD index funds for a youngish person with no interest in investing. TDB655 is listed as currency neutral, the other as currency diversified. What is the difference and which is the most conservative? ( I don't know what either actually means)

Thanks
Asked by M.S. on December 03, 2024
5i Research Answer:

Currency neutral means the fund's US dollar exposure is hedged. If the US dollar rises against the Canadian dollar, investors will not benefit. But if the US dollar falls, Canadian investors will not be negatively impacted, either. TDB217 is not currency hedge, so swings in the US$ (good or bad) will impact returns when priced in Canadian dollars. We prefer unhedged products, but a 'conservative' investor who does not want to take on ANY currency risk at all would likely be more comfortable with a hedged product. 

Let us help YOU reach your financial goals today!

Start your FREE trial today and enjoy all the benefits of a 5i Membership including:

  • Access to a team of experts ready to answer your investments question 
  • Instant access to over 100,000 archived questions
  • A community of like-minded investors
  • Peace of mind knowing that 5i Research has only YOUR best interests in mind