RBC Global Asset Management Inc. (RBC GAM Inc.) today announced the launch of four new Exchange Traded Funds (ETFs). All four RBC ETFs begin trading today on the Toronto Stock Exchange.
"Navigating through today’s complex markets can be a challenge and Canadian investors continue to seek solutions that manage risks and provide stable income beyond what a typical government bond fund can offer," said Mark Neill, head of RBC ETFs. "We are pleased to address this need by expanding our offering of ETFs that are designed to take advantage of income opportunities that exist in today’s low-yield environment. Today’s launch builds on our successful suite of RBC ETFs, bringing together superior portfolio construction and competitive fees, while aiming to generate regular income and capital growth for investors."
RBC Canadian Preferred Share ETF (RPF) is a high-quality actively managed preferred share solution. This ETF aims to provide regular dividend income by primarily investing in rate reset preferred shares of Canadian companies.
By providing access to a diversified portfolio of preferred shares in a single ETF, this solution aims to reduce single-issuer risk and has a management fee of 0.53%, making it the lowest cost active preferred share ETF in Canada.
RBC Quant Global Infrastructure Leaders ETF (RIG) is a global equity income solution developed by the RBC Global Asset Management Quantitative Investment team and employs a rules-based, multi-factor approach to build a global portfolio of listed infrastructure companies such as utilities, transportation, energy and communications.
This ETF employs an innovative approach to weighting and quarterly reconstitution to enhance risk-return characteristics and has a management fee of 0.55 per cent. It is also available in a U.S. dollar option with the ticker symbol "RIG.u".
"As Canada’s leading provider of income solutions , we are pleased to continue to offer new investment vehicles that meet the evolving needs of investors and advisors," said Doug Coulter, president of RBC GAM Inc. "Last year, we were recognized as Best Bond ETFs Group by Lipper Fund Awards Canada, and we are pleased to build on this momentum with the expansion of our award winning suite RBC Target Maturity Corporate Bond ETFs."
RBC Target Maturity Corporate Bond ETFs represent a family of fixed income ETFs maturing in successive years ranging from 2016 to 2023. Unlike traditional ETFs, which have a perpetual life, target maturity ETFs have a specified maturity date established when the ETF is launched.
When the ETF reaches the maturity date, the ETF’s final net asset value is returned to the current unitholders. RBC Target Maturity Corporate Bond ETFs provides access to a specific maturity structure, offering investors and advisors increased flexibility to tailor their bond laddering strategies to an exact maturity date of their choice.
These ETFs are intended to be a replacement for holding individual corporate bonds and aims to reduce risk through issuer diversification. The management fees for the new ETFs are listed below.
Next Finance , September 2016
 Source: RBC GAM Inc., IFIC. Based on AUM including IFIC money market, fixed income, income oriented balanced and income oriented equity mutual fund solutions plus income oriented ETF solutions as of June 30, 2015.
RBC Global Asset Management won the award for Lipper Canada Best Bond ETFs Group 2015. The Lipper Awards were based on best risk-adjusted performance for periods ended July 31, 2015. Lipper Inc. is a Thomson Reuters company.
Using its expertise in systematic asset management, in 2013, Ossiam has set up an ETF offering a long only exposure to a risk weighted enhanced commodity index, based on S&P Goldman Sachs Commodity Index constituents, excluding (...)