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  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]
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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. 

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