RBC Global Asset Management (RBC GAM) has launched five new income-oriented ETFs on the Toronto Stock Exchange.
RBC GAM now offers 40 ETFs in Canada with over $4bn in combined AUM.
Four of the ETFs leverage investment capabilities from the fixed income teams at RBC GAM, which includes Phillips, Hager & North Investment Management and BlueBay Asset Management.
“RBC GAM has been consistently recognized as a leader in fixed income investment solutions,” said Doug Coulter, president of RBC GAM. “We are excited to leverage the capabilities from our diverse, global fixed income teams, applying their expertise within our growing family of ETFs.”
The RBC PH&N Short Term Canadian Bond ETF (RPSB) invests primarily in a diversified portfolio of short duration Canadian government and corporate bonds, as well as Canadian bonds issued by foreign corporations. RPSB is actively managed by the fixed income investment team at Phillips, Hager & North Investment Management and aims to provide attractive monthly income and stability of capital. Its total expense ratio (TER) is 0.35%.
The RBC 6-10 Year Laddered Canadian Corporate Bond Ladder ETF (RMBO) consists of a rules-based, actively managed portfolio of Canadian bonds with a term to maturity ranging from six to ten years. RMBO aims to provide regular monthly income and offers staggered maturities with the aim of reducing interest rate risk. Its TER is 0.25%.
The RBC Short-Term US Corporate Bond ETF (RUSB) invests primarily in short duration US corporate bonds and is the first actively managed short-term US fixed income ETF in Canada. RUSB aims to provide investors with attractive yield and potential for modest capital appreciation. The fund is also offered in a USD version with the ticker RUSB.U. Its TER is 0.35%.
The RBC BlueBay Global Diversified Income (CAD Hedged) ETF (RBDI) consists of a diversified global bond portfolio designed to maximize yield for a particular level of credit risk by targeting bonds with the most attractive yield/quality characteristics. RBDI aims to provide investors a simple way to access attractive monthly income from a specialty global fixed income strategy. Its TER is 0.60%.
In addition, RBC GAM has also expanded its suite of index-tracking ETFs. The RBC Canadian Bank Yield Index ETF (RBNK) tracks the performance of a portfolio of the largest six Canadian bank stocks. RBNK aims to provide investors with an efficient way to invest in the Canadian banks and an attractive source of tax-efficient income. Its TER is 0.29%
“As our ETF family continues to grow, we are pleased to offer an expanded range of solutions to help our clients take advantage of market opportunities,” said Mark Neill, head of RBC ETFs. “This year, we have significantly expanded our ETF line-up in response to continued strong demand from investors and advisors. We now manage more than $4 billion in ETF assets and, with the addition of these five funds, we now have 40 funds and 50 tickers.”