Best TD Mutual Funds in Canada (2026)

TD sells over 200 mutual funds. Most charge 2%+ MER and aren't worth your money. But buried in the lineup are the e-Series funds — among the cheapest mutual funds in Canada at 0.22-0.50% MER. Here's what to actually buy.

e-Series spotlight MER comparison Fund codes included Updated 2026

The e-Series Funds: TD's Best-Kept Secret

TD e-Series index funds are the reason this page exists. They track the same indexes as popular ETFs but work like regular mutual funds — automatic contributions, no trading commissions, fractional shares. At 0.22-0.50% MER, they cost a fraction of TD's regular mutual fund lineup.

You won't find them promoted at your local TD branch. Advisors earn zero commission on e-Series because there's no trailer fee. You need a TD Direct Investing account or specifically ask for them at TD.

Why e-Series still matter in 2026: Yes, ETFs are cheaper. XEQT charges 0.20% vs 0.22% for TDB900. But e-Series let you set up automatic $50/month contributions with no trading fees. For dollar-cost averaging in a TFSA or RRSP, that convenience is worth the extra 0.02%.

TD e-Series Funds — The Only Ones Worth Buying

These four funds cover every major market. Combine them for a complete portfolio.

Fund Code MER Tracks 10-Year Return Verdict
TD Canadian Index Fund – e TDB900 0.28% S&P/TSX Composite 7.8% Buy
TD U.S. Index Fund – e TDB902 0.33% S&P 500 (CAD) 13.2% Buy
TD International Index Fund – e TDB911 0.47% MSCI EAFE 6.1% Buy
TD Canadian Bond Index Fund – e TDB909 0.44% FTSE Canada Universe Bond 1.8% Buy (if you want bonds)

Classic 4-fund e-Series portfolio: 25% TDB900 + 25% TDB902 + 25% TDB911 + 25% TDB909. Adjust the bond allocation based on your age and risk tolerance. Younger investors often skip bonds entirely. See our Couch Potato portfolio guide for allocation strategies.

TD's Regular Mutual Funds — Mostly Overpriced

These are the funds TD branch advisors actually push. The MER difference is staggering.

Fund Code MER e-Series Equivalent MER Difference Verdict
TD Canadian Index Fund TDB161 0.83% TDB900 (0.28%) +0.55% Switch to e-Series
TD Balanced Growth Fund TDB880 2.12% DIY e-Series mix +1.84% Avoid
TD Dividend Growth Fund TDB600 2.07% TDB900 (0.28%) +1.79% Avoid
TD Canadian Equity Fund TDB161 2.08% TDB900 (0.28%) +1.80% Avoid
TD Comfort Balanced Growth TDB886 2.01% DIY e-Series mix +1.73% Avoid
TD Monthly Income Fund TDB622 1.88% DIY e-Series mix +1.60% Avoid

The cost of 2% MER on $100,000 over 25 years: You'd pay roughly $95,000 in fees. The same money in e-Series funds (0.28% MER) costs about $16,000 in fees. That's $79,000 more in your pocket. Use our MER calculator to run your own numbers.

How to Buy TD e-Series Funds

Option 1: TD Direct Investing (easiest). Open a self-directed TFSA or RRSP at TD Direct Investing. Search for the fund codes (TDB900, TDB902, etc.) and buy. Set up automatic contributions. Minimum purchase is $100.

Option 2: TD EasyWeb Mutual Funds. You can buy e-Series through regular TD banking, but you need to fill out a form to convert your mutual fund account to an e-Series account. Call TD at 1-800-386-3757 or visit a branch — but know that most advisors will try to talk you out of it because they earn nothing on e-Series.

Option 3: TD GoalAssist app. TD's app lets you buy e-Series funds with automatic contributions. Simple interface, but limited to e-Series only (which is actually a feature, not a bug).

Already in TD mutual funds? You can switch from any TD mutual fund to e-Series within the same account type (RRSP to RRSP, TFSA to TFSA) with no tax consequences. It's an internal transfer. Call TD Direct Investing to do it in one phone call. Read our full switching guide for step-by-step instructions.

TD e-Series vs ETFs: When Each Makes Sense

Choose e-Series if: You want automatic contributions (e.g., $200/month into your TFSA), you're investing smaller amounts, or you don't want to deal with bid-ask spreads and market orders. The slightly higher MER buys you convenience.

Choose ETFs if: You have a lump sum to invest, your portfolio is over $50,000, or you're already comfortable with a brokerage account. At that point, XEQT at 0.20% MER beats e-Series on cost and simplicity. See our ETF vs mutual funds comparison.

The honest take: For most people investing under $500/month, the difference between e-Series (0.28%) and a comparable ETF (0.20%) on a $50,000 portfolio is about $40/year. That's less than one dinner out. Pick whichever you'll actually stick with.

TD Managed Portfolios: Overpriced Convenience

TD Comfort Portfolios and TD Managed Asset Allocation funds charge 1.8-2.2% MER for a pre-mixed portfolio of TD funds. That's the same thing as mixing 4 e-Series funds yourself, except TD charges you 7x more for the privilege of not having to pick the allocation.

If you want a single-fund solution, buy a single all-in-one ETF like XBAL (balanced) or XEQT (all equity) at 0.20% MER through TD Direct Investing. Same concept, 90% cheaper.

Or use a robo-advisor like Wealthsimple (0.40% all-in) or RBC InvestEase (0.50%). Both are cheaper than TD's managed portfolios and do the rebalancing for you.

The TD Trailer Fee Class Action

In 2025, TD settled a $70.25 million class action lawsuit over trailing commissions charged at TD Direct Investing — their discount brokerage. The issue: TD charged trailer fees (embedded in the MER) on funds held in self-directed accounts where no advisor was providing service. You paid for advice you never received.

If you held mutual funds in a TD Direct Investing account between 2009 and 2022, you may be eligible for a share of the settlement. Read our full trailer fee class action breakdown for details on eligibility and how to claim.

Bottom line on TD funds

Buy the e-Series. Ignore everything else in TD's lineup. Set up automatic contributions and go live your life.

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Nothing on this site is financial advice. Fund MERs and returns can change. Verify current data on TD's website or in the Fund Facts document before investing. Some links on this site are affiliate links. Past performance doesn't guarantee future returns.