New Issue: RBC prices $3.25 million absolute return notes linked to iShares Russell 2000 index fund

By Angela McDaniels

Tacoma, Wash., July 29 - Royal Bank of Canada priced $3.25 million of zero-coupon principal-protected absolute return notes due July 30, 2010 linked to the iShares Russell 2000 index fund, according to a 424B5 filing with the Securities and Exchange Commission.

If shares of the exchange-traded fund remain within 30% of the initial share price throughout the life of the notes, the payout at maturity will be par plus the absolute value of the fund return. Otherwise, the payout will be par.

RBC Capital Markets Corp. is the underwriter.

Issuer:	Royal Bank of Canada
Issue:	Principal-protected absolute return notes
Underlying ETF:	iShares Russell 2000 index fund
Amount:	$3,246,000
Maturity:	July 30, 2010
Coupon:	0%
Price:	Par
Payout at maturity:	If the ETF closes above the upper barrier or below the lower barrier on any day during the life of the notes, par; otherwise, par plus the absolute value of the fund return
Initial share price:	$69.48
Upper barrier:	$90.32, 130% of initial price
Lower barrier:	$48.64, 70% of initial price
Pricing date:	July 28
Settlement date:	July 31
Underwriter:	RBC Capital Markets Corp.
Fees:	2.375%

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