Wiki on toroidal transformers:
Toroidal transformers are built around a ring-shaped core, which, depending on operating frequency, is made from a long strip of silicon steel or permalloy wound into a coil, powdered iron, or ferrite.[60][61] A strip construction ensures that the grain boundaries are optimally aligned, improving the transformer's efficiency by reducing the core's reluctance. The closed ring shape eliminates air gaps inherent in the construction of an E-I core.[20] The cross-section of the ring is usually square or rectangular, but more expensive cores with circular cross-sections are also available. The primary and secondary coils are often wound concentrically to cover the entire surface of the core. This minimizes the length of wire needed and provides screening to minimize the core's magnetic field from generating electromagnetic interference.
Toroidal transformers are more efficient than the cheaper laminated E-I types for a similar power level. Other advantages compared to E-I types, include smaller size (about half), lower weight (about half), less mechanical hum (making them superior in audio amplifiers), lower exterior magnetic field (about one tenth), low off-load losses (making them more efficient in standby circuits), single-bolt mounting, and greater choice of shapes. The main disadvantages are higher cost and limited power capacity (see Classification parameters below). Because of the lack of a residual gap in the magnetic path, toroidal transformers also tend to exhibit higher inrush current, compared to laminated E-I types.
Ferrite toroidal cores are used at higher frequencies, typically between a few tens of kilohertz to hundreds of megahertz, to reduce losses, physical size, and weight of inductive components. A drawback of toroidal transformer construction is the higher labor cost of winding. This is because it is necessary to pass the entire length of a coil winding through the core aperture each time a single turn is added to the coil. As a consequence, toroidal transformers rated more than a few kVA are uncommon. Relatively few toroids are offered with power ratings above 10 kVA, and practically none above 25 kVA. Small distribution transformers may achieve some of the benefits of a toroidal core by splitting it and forcing it open, then inserting a bobbin containing primary and secondary windings.