Money shouldn't be complicated, but somehow, the world of mutual funds always finds a way. You’re looking at your portfolio, seeing a sea of tickers, and then you spot it: TD US Monthly Income Fund 2460. Maybe you’re an expat living in Florida, or perhaps you just like the idea of getting paid in greenbacks every month. Honestly, most people just see the "TD" name and assume it's a safe bet. They aren't necessarily wrong, but there is a lot more under the hood of TDB2460 than just a monthly check.
The reality is that this fund is a bit of a hybrid. It’s like a Swiss Army knife designed for a very specific type of Canadian investor—the one who wants exposure to the US market but needs that cash flow to hit their account like clockwork.
What Exactly Is TD US Monthly Income Fund 2460?
Basically, TDB2460 is the "Investor Series" version of TD's US dollar monthly income strategy. It’s a balanced fund. That means the managers aren't just throwing everything into high-flying tech stocks or boring government bonds. Instead, they’re playing both sides. As of early 2026, the fund generally keeps around 55% to 60% of its weight in equities and the rest in fixed income and cash.
Why the 2460 code? That’s just the specific internal identifier for the US dollar version of the Investor Series. If you bought this in Canadian dollars, you’d be looking at a completely different fund code. This matters because by holding TDB2460, you are keeping your money in US dollars. You aren't getting hit by the daily fluctuations of the CAD/USD exchange rate within the fund's performance itself.
It’s built for the medium-to-long term. You shouldn't be day-trading this thing. The fund's primary goal is "consistent monthly income," while capital growth is treated as a secondary "nice-to-have" objective.
The Management Fee Reality Check
Let's talk about the elephant in the room: the Management Expense Ratio (MER). For the 2460 series, you’re looking at an MER that often sits around 2.03%.
Is that high? Kinda.
If you compare it to a low-cost ETF, it looks expensive. But you've got to remember what you're paying for here. This is a "commission-based" series, meaning a portion of that fee (the trailing commission) usually goes toward paying for the advice you get from a branch or a broker. If you’re a DIY investor who doesn't need a human to hold your hand, you’d likely look at the F-Series (TDB2465) which has a much lower fee because it strips out that commission.
What’s Inside the Portfolio?
The managers at TD Asset Management (TDAM) aren't reinventing the wheel. They are looking for "blue chip" stability. If you look at the top holdings, you’ll see the usual suspects that dominate the S&P 500 but with an "income" twist.
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- Microsoft (MSFT): A staple for growth and a growing dividend.
- NVIDIA (NVDA): While not a traditional "income" stock, it provides the capital appreciation the fund needs to keep its head above water.
- TD U.S. Corporate Bond Fund: This is a big one. The fund often holds a massive chunk—sometimes over 30%—in its own internal corporate bond fund to provide that steady yield.
- Apple and Alphabet: Tech giants that provide liquidity and stability.
The sector mix is heavily weighted toward Information Technology (around 30%+) and Financials. It’s a classic American growth story, just wrapped in a package that spits out cash every 30 days.
Performance: Is It Actually Worth It?
Past performance is never a guarantee of future results—every legal flyer will scream that at you. But looking back, the fund has been remarkably resilient. In 2025, the fund saw returns in the neighborhood of 10%, which is solid for a "neutral balanced" category.
However, it rarely beats a pure S&P 500 index fund during a massive bull run. Why? Because of that 35-40% bond cushion. When tech stocks are mooning, the bonds act as a literal weight. But when the market hits a pothole—like we saw in the volatility of late 2022—that bond exposure is exactly what keeps your account from bleeding out.
It’s a trade-off. You trade the "moonshot" potential for the ability to sleep at night knowing your monthly distribution is likely coming.
The Distribution Trap
People get confused about "yield" versus "distribution." The TD US Monthly Income Fund 2460 often targets a specific distribution rate. Sometimes, if the underlying stocks don't earn enough in dividends to cover that check, the fund might give you back some of your own money—this is called Return of Capital (ROC).
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ROC isn't inherently "bad," but it can be a surprise at tax time if you don't understand how it lowers your adjusted cost base. If you're holding this in an RRSP or TFSA, you don't really care. But in a taxable account? You’ll want to keep an eye on those T3 slips.
Why Investors Choose TDB2460 Over Others
There are a million ways to get US exposure. You could buy an ETF like VBAL or just grab the S&P 500 directly. So why do people stick with the TD US Monthly Income Fund 2460?
- Simplicity: You don't have to rebalance. The TDAM team does it for you.
- US Dollar Focus: It’s a clean way to keep assets in USD without having to do a "Norbert's Gambit" or pay currency conversion fees every time you buy or sell.
- Low Volatility: Its "low-to-medium" risk rating is accurate. It’s a "smooth ride" fund.
Actionable Steps for Your Portfolio
If you're currently holding TDB2460 or thinking about it, don't just "set it and forget it." Here is how to handle it like a pro.
Check your series. If you are a self-directed investor using a platform like TD Direct Investing, check if you can hold the F-Series (TDB2465) instead. You’ll save significantly on the MER because you aren't paying a "trailer" fee for advice you aren't using. Over 10 years, that 1% difference in fees can be the difference between a nice vacation and a used car.
Verify your currency needs. Only buy this fund if you actually want to hold US dollars. If you are a Canadian who spends strictly in CAD and has no plans to travel or buy US property, the currency fluctuations between the Loonie and the Greenback might add a layer of volatility you don't actually need.
Balance your tech exposure. Because this fund is heavy on Microsoft, Apple, and NVIDIA, make sure you aren't "doubling up" in other parts of your portfolio. If you already own a bunch of NASDAQ ETFs, you might be more concentrated in tech than you realize.
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Reinvest or Cash? Decide if you need the monthly check now. If you don't, set the fund to DRIP (Dividend Reinvestment Plan). This allows the fund to buy more units automatically, compounding your growth. Most people who buy "monthly income" funds forget that if you don't actually need the cash to pay bills, reinvesting is the fastest way to build wealth.