RBC Global launches real estate leaders ETF

May 10th, 2017 | By | Category: Alternatives / Multi-Asset

RBC Global Asset Management has launched the RBC Quant Global Real Estate Leaders ETF (TSX: RGRE), providing access to a globally diversified portfolio of REITs and real estate management and development companies within a single ETF wrapper.

RBC Global launches RBC Quant Global Real Estate Leaders ETF

The RBC Quant Global Real Estate Leaders ETF provides access to a globally diversified portfolio of REITs and real estate management and development companies.

Using insights from the RBC Global Asset Management Quantitative Investment team, RGRE employs a proprietary, rules-based, multi-factor approach to build a portfolio of global real estate investment trusts and real estate operating companies with attractive yields, strong balance sheets and stable cash flow. It aims to provide stable, regular monthly income and long-term capital growth – RBC Global has estimated the fund’s gross portfolio yield at between 4-5%.

The ETF may suit Canadian investors looking for income who are also seeking to enhance portfolio diversification; global real estate investments have historically shown a low correlation to traditional asset classes within Canada. In addition, exposure to real assets acts as a partial inflation hedge.

Mark Neill, Head of RBC ETFs, commented: “With this new ETF, we continue to grow our offering of real asset investment strategies, following our launch last September of the RBC Quant Global Infrastructure Leaders ETF (TSX:RIG). As investors increasingly seek stable sources of income to enhance the yield of their portfolios, diversified global real asset investment solutions will continue to grow in importance. RGRE and RIG are the first real asset ETFs in Canada that employ a quantitative methodology and we are pleased to offer these unique solutions to Canadian investors.”

The management fee of RGRE is 0.55% and the fund is also available in a US dollar-denominated share class option (Ticker: RGRE.u).

“With this launch, there are now more than 20 RBC ETFs available to investors that apply our proprietary quantitative investment approach,” said Bill Tilford, head of quantitative investments. “For each of these ETFs, we employ a specifically designed security selection and weighting methodology with the goal of maximizing risk-adjusted returns.”

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