Banks have had a tough year so far in 2023, with the SPDR S Bank ETF (NYSEMKT: KBE) down more than 20% versus a roughly 7% gain for the broader S 500 index. Even if you've never bought shares of a bank stock before, that might have you thinking about making a contrarian investment in the sector. You should probably err on the side of caution and opt for a bank like Toronto-Dominion Bank (NYSE: TD). Here are some important reasons why.

Toronto-Dominion hails from Canada, where it is one of the largest banks in the country. That provides a solid foundation for the business. It also has a significant presence in the U. S., where its business is concentrated on the East Coast. Basically, in the U.S. market, it is a large regional bank. Given its footprint, there's room for growth as it expands its geographic reach.

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Source Fool.com