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With do-it-yourself investing popularity on the rise, TD Direct Investing launches one-of-a-kind self-directed investor sentiment index, to help Canadians build their investing knowledge
TD Direct Investing Index offers analysis of market and self-directed investor trends, with unique segmentation that includes demographics, geography and trading activity
TORONTO, Sept. 23, 2021 /CNW/ - Today, TD Direct Investing ("DI") launched the TD Direct Investing Index, a monthly investor sentiment index that provides Canadians with a picture of the self-directed investment landscape from prior months to help them better understand, stay engaged and informed.
A first-of-its-kind in Canada, the TD Direct Investing Index looks at self-directed investing activity and provides a detailed analysis on investor behaviour. Developed with data and analytics support from TD Wealth and market trends and analysis from TD Economics and TD Securities, Canadian investors can gain insight into trading activity of anonymized self-directed investors from the prior month, and up to the past 13 months.
"With the TD Direct Investing Index , we are helping Canadians make sense of what's happening in the markets by taking complex insights and investing activity to provide a snapshot of what self-directed investors were doing and how they may have been feeling – were they optimistic or pessimistic about their investing, what they bought, held and sold," said Raymond Chun, President, TD Direct Investing and EVP, TD Bank Group. "Throughout the pandemic, we saw a significant increase in demand for online investing. With so many Canadians starting self-directed investing for the first time, it's more important than ever we provide educational resources to help build their investing knowledge. Investing can be overwhelming for many; the TD Direct Investing Index, alongside our Learning Centre, Analyst Research and other tools, helps investors navigate their investing journey and invest with confidence."
The TD Direct Investing Index can be filtered and applied to key demographic groups and sectors, including:
- Most Popular Securities: The securities that were bought and sold the most in the previous month.
- Investment Sectors: A analysis of 11 different sectors, including Energy, Technology, Basic Materials, Communication Services, Financial Sector and Consumer Discretionary.
- Trading Style: How sentiment varied across engagement level of two types of investor profiles; long-term investor or active trader.
- Age Groups: Age demographics for Gen Z, Millennial, Gen X, Baby Boomers and Traditionalists.
- Sentiment Across Provinces: Analysis broken down by provinces to gauge sentiment across the country.
The TD Direct Investing Index also reveals a monthly "sentiment score" measured on a scale from very bullish to very bearish. Made up of four distinct investing behaviour measures (also called proxies), each one can be bullish or bearish, and anywhere in between:
- Bought vs Sold: measures net equity demand—whether self-directed investors were buying more or selling more in a specified month.
- Chasing Trends: measures if self-directed investors bought securities on a rising or declining market.
- Bought at Extremes: measures if self-directed investors were buying at either the top or bottom of the market.
- Flight to Safety: measures how much self-directed investors were pulling back into safer, less risky investments.
The TD Direct Investing Index supports TD Direct Investing's strategic investments to help meet the increase in online investing and re-affirm its position as Canada's largest online brokerage1. With leading investment tools and resources, like the TD Direct Investing Learning Centre, one of the largest libraries of free educational content, and TD GoalAssist™, a first of its kind mobile app in Canada, TD Direct Investing helps clients make more informed investment decisions.
To learn more, visit the TD Direct Investing Index.
The TD Direct Investing Index (DII) provides data and insights relating to historical self-directed investor activity. The DII is for informational purposes only. Any information provided through the DII should not be considered an investment recommendation, nor is it an offer, or solicitation of an offer to purchase or sell any investment fund, security or other product. Particular investment, trading, or tax strategies should be evaluated relative to each individual's objectives. Investors should not take the historical information as an indication, assurance, estimate or forecast of future values or future performance. The DII should not be used as individual financial, legal, investment or tax advice. Please consult your own legal, investment and/or tax advisor. Information provided through the DII is subject to change without notice.
TD Direct Investing is a division of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank.
TD GoalAssistTM is a service of TD Direct Investing, a division of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank.
The Toronto-Dominion Bank and/or its subsidiaries or affiliated persons or companies may hold a position in the securities mentioned, including options, futures and other derivative instruments thereon, and may, as principal or agent, buy or sell such securities. They may also make a market in, issue, and participate in an underwriting of such securities.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the fifth largest bank in North America by assets and serves more than 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; and Wholesale Banking, including TD Securities. TD also ranks among the world's leading online financial services firms, with more than 15 million active online and mobile customers. TD had CDN$1.7 trillion in assets on July 31, 2021. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
1 Based on assets under administration and trading volume of Online/Discount Brokerage firms in Canada as reported by Investor Economics in the "Online/Discount Brokerage Market Share Report" for the quarter ending June 30, 2021.
SOURCE TD Bank Group
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