RBC unveils two ETFs tracking 2024, 2025 target-maturity bond indexes

By Wendy Van Sickle

Columbus, Ohio, Sept. 12 – RBC Global Asset Management Inc. launched two new RBC Target Maturity Corporate Bond ETFs, which began on the Toronto Stock Exchange Wednesday, according to a news release.

The RBC Target 2024 Corporate Bond index ETF and the RBC Target 2025 Corporate Bond index ETF are linked to the FTSE Canada 2024 Maturity Corporate Bond index and the FTSE Canada 2025 Maturity Corporate Bond index respectively.

Each of the indexes tracked by the new ETFs maintains a portfolio of Canadian investment-grade corporate bonds structured to mature in the same calendar year as the ETF. When the ETF reaches the maturity date, its final net asset value is returned to the current unitholders.

“The suite of RBC Target Maturity Corporate Bond ETFs offers investors and advisers the flexibility to tailor their bond laddering strategies to the maturity date of their choice,” Mark Neill, head of RBC ETFs, said in the release.

“These ETFs are intended to be a replacement for holding individual corporate bonds and aim to reduce risk through issuer diversification as well as enhance returns through institutional bond pricing, transparency and greater liquidity.”

RBC Global Asset Management, based in Toronto, is part of RBC Wealth Management.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.