TUED ETF: TD active U.S. dividend holdings, MER

Short answer: TUED is TD Asset Management’s actively managed U.S. dividend ETF. Listed in May 2020, 0.73% MER, 26.0% three-year annualized return through May 2026. The active mandate gives the team room to skip dividend traps that a pure dividend-screen index would buy.

TUED is one of the few actively managed U.S. dividend wrappers on the Morningstar Five Star and Gold list. The fee is high for an ETF but the strategy is meaningfully different from a passive dividend screen.

Not financial advice. Fund details change. Check current disclosures.

What TUED actually is

TSX-listed, CAD-denominated (unhedged on the underlying USD exposure). TD’s portfolio team picks U.S. dividend-paying stocks, with discretion to skip companies where the dividend looks unsustainable.

TUED fund facts
Attribute	Value
Ticker	TUED (TSX)
Inception	May 26, 2020
Asset mix	U.S. equities (dividend-focused)
MER	0.73%
Strategy	Active
Currency	CAD (unhedged)
Net assets	about $721.1M (May 2026)
3-year annualized return	26.0% (through May 19, 2026)

What TUED holds

TUED asset allocation

U.S. equity 88.9%

Canadian equity 7.2%

Cash and other 3.9%

Source: Morningstar Direct, data as of May 19, 2026, via The Globe and Mail.

The Canadian sleeve is unusual for a “U.S.” dividend ETF. It reflects TD’s flexibility to hold a handful of cross-listed names that fit the dividend thesis.

The fee

Fee drag calculator

How much TUED's MER costs vs XUU over time

Starting balance Annual contribution Years Gross return %

Extra cost from TUED

That's what you pay TUED (0.73%) over 20 years above what XUU (0.07%) would charge on the same portfolio.

TUED total fees

XUU total fees

Peer comparison: XUU, iShares Core S&P U.S. Total Market Index ETF, broad U.S. equity benchmark. Assumes constant gross return, annual contributions made at year-end, and MER charged on average annual balance. Real returns vary.

For illustration only. Simplified compounding. Ignores trading costs, tracking error, distribution reinvestment timing, taxes, and the obvious fact that real returns are not constant. MERs and peer fees as of May 2026 and may change. Do not use this number as the basis for a real decision.

The fee gap is large. A passive U.S. dividend ETF like VYM (U.S.-listed) charges around 0.06%. TUED’s premium reflects the active stock-picking and the Canadian wrapper.

Tax treatment

Tax treatment for Canadian investors

Distribution frequency: Monthly
What distributions are made of: Foreign income from U.S. dividends (taxed as interest in non-registered accounts)
Small Canadian eligible dividends from cross-listed names
Active trading capital gains
In a registered account: Inside an RRSP, U.S. dividend withholding is exempt under the treaty (subject to the standard caveats). That makes TUED meaningfully more tax-efficient inside an RRSP than a TFSA. Inside a TFSA or FHSA, the 15% U.S. withholding applies and is not recoverable.
In a non-registered account: Foreign income plus monthly distribution cadence make non-registered placement less tax-efficient. If you can use an RRSP, you should.
Adjusted cost base: Monthly distributions and active turnover mean meaningful ACB tracking.

General guidance, not tax advice. Distribution composition shifts year to year, and edge cases (currency-hedged wrappers, fund-of-funds structures, the U.S.-Canada treaty's reach inside an RRSP) can change the picture. Confirm with the issuer's current T3 disclosures and a tax professional before acting.

How TUED compares to alternatives

TUED vs VYM (U.S.-listed). Vanguard High Dividend Yield ETF, U.S.-listed at 0.06%. Cheaper, passive, but needs a USD account and U.S. tax considerations.
TUED vs XUS or XUU. Broad U.S. equity at 0.07 to 0.10%. No dividend tilt.
TUED vs a Canadian dividend ETF. VDY or XEI focus on Canadian dividend payers. Different geographic exposure, different tax treatment.

Frequently asked questions

What is TUED.TO?

TUED is TD Active U.S. Enhanced Dividend ETF. An actively managed U.S. equity ETF with a dividend focus, listed on the TSX in CAD.

What is TUED’s MER?

0.73%. High for an ETF; in line with active equity funds.

Is TUED hedged to CAD?

No. TUED is unhedged. The underlying USD exposure means currency moves affect headline returns.

What does “Enhanced Dividend” mean?

It signals an active mandate with some flexibility to use covered-call or other yield-enhancing strategies on a portion of the holdings. Check TD’s current factsheet for the current overlay usage.

Where should I hold TUED?

Inside an RRSP, ideally. The U.S. dividend withholding tax exemption inside an RRSP (under the U.S.-Canada treaty) is the cleanest setup for a U.S. dividend wrapper.

Why pay 0.73% for TUED instead of a cheaper passive?

If you specifically value the active team’s ability to skip dividend traps, TUED is the way to express that. The three-year outperformance suggests the active edge has shown up. Whether it persists is the open question.

Is TUED a covered-call ETF?

Not primarily. TUED’s “Enhanced” label allows some yield-enhancing overlays but the fund is fundamentally a long-only active dividend ETF, not a pure covered-call wrapper.

The honest verdict

Good fit for

DIY investors who want active U.S. dividend exposure inside a CAD wrapper, held in an RRSP for tax efficiency, and willing to pay 0.73% for the active overlay.

Skip if

Cost matters more than active selection (VYM at 0.06% is the cheaper alternative if you can use a USD account), or you don't want to pay active-fund fees in the ETF wrapper.

Cheaper alternative XUU · iShares Core S&P U.S. Total Market Index ETF · MER 0.07%

Bottom line

TUED is the active U.S. dividend bet that worked over the last three years. The fee is steep, the strategy is genuine, and the RRSP placement is what makes it tax-sensible. Pick it if you specifically value the active overlay; skip it if you’d be as happy with a passive U.S. dividend tracker.

TUED ETF: what TD Active U.S. Enhanced Dividend ETF is, what it holds, and how it works