RBC Global Asset Management opens four Canadian income-oriented ETFs

By Tali Rackner

Norfolk, Va., Sept. 20 – RBC Global Asset Management Inc. launched four new exchange-traded funds, according to a press release.

All four ETFs began trading on Tuesday on the Toronto Stock Exchange.

The RBC Canadian Preferred Share ETF is an actively managed preferred share solution that aims to provide regular dividend income by primarily investing in rate-reset preferred shares of Canadian companies, the release said. The fund has management fees of 0.53% and trades under the symbol “RPF.”

The RBC Target 2022 Corporate Bond index ETF and the RBC Target 2023 Corporate Bond index ETF represent a family of fixed-income ETFs maturing in successive years ranging from 2016 to 2023. Different from 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, its final net asset value is returned to the current unitholders. The 2022 ETF trades under the symbol “RQJ,” and the 2023 ETF trades under the symbol “RQK.” Both have management fees of 0.25%.

The RBC Quant Global Infrastructure Leaders ETF is a global equity income solution developed by the company’s 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. The ETF has management fees of 0.55% and trades under the symbol “RIG.” It is also available in a U.S. dollar option with the symbol "RIG.u."

"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," Mark Neill, head of RBC ETFs, said in the release.

"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.”

RBC Global Asset Management is a Toronto-based wholly owned subsidiary of Royal Bank of Canada.

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