RBC plans best profile notes linked to three fund basket scenarios

By Sarah Lizee

Olympia, Wash., Feb. 8 – Royal Bank of Canada plans to price 0% best profile notes due March 2, 2023 linked to the best performing basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

Basket A consists of the SPDR S&P 500 ETF trust with a 30% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight, the SPDR Gold trust with a 20% weight, the iShares iBoxx $ High Yield Corporate Bond ETF with a 10% weight and the iShares iBoxx $ Investment Grade Corporate Bond ETF with a 10% weight.

Basket B consists of the SPDR S&P 500 ETF trust with a 20% weight, the iShares MSCI EAFE exchange-traded fund with a 20% weight, the SPDR Gold trust with a 25% weight, the iShares iBoxx $ High Yield Corporate Bond ETF with a 20% weight and the iShares iBoxx $ Investment Grade Corporate Bond ETF with a 15% weight.

Basket C consists of the SPDR S&P 500 ETF trust with a 10% weight, the iShares MSCI EAFE exchange-traded fund with a 10% weight, the SPDR Gold trust with a 30% weight, the iShares iBoxx $ High Yield Corporate Bond ETF with a 20% weight and the iShares iBoxx $ Investment Grade Corporate Bond ETF with a 30% weight.

The payout at maturity will be par plus the return of the best performing basket.

Investors will be exposed to any losses.

RBC Capital Markets LLC is the underwriter.

The notes will price on Feb. 25.

The Cusip number is 78013GHM0.

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