RBC Global rolls out fixed income and smart beta equity ETFs

Feb 8th, 2016 | By | Category: ETF and Index News

RBC Global Asset Management (RBC GAM), a division of the Royal Bank of Canada, has launched a suite of exchange-traded funds offering international exposure to global companies. Three of the four new ETFs are factor based funds with screens across dividends, quality and value, while the remaining ETF invests in short duration, investment grade, corporate and government securities.

All funds are listed on the Toronto Stock Exchange and the new additions bring the total number of ETFs issued by RBC Global to 24.

RBC Global rolls out batch of fixed income and smart beta equity ETFs

The four ETFs launched by Royal Bank of Canada Global Asset Management target the domestic investment grade fixed income space as well as a range of factor-based strategies seeking high growth, high quality, attractively priced companies.

Mark Neill, head of RBC ETFs, commented: “In today’s global market, investors and advisors are facing challenges when looking for strong investment opportunities while effectively managing risk. We are pleased to address that need by offering ETFs that are designed to take advantage of global opportunities and mitigate risk. Today’s launch extends our successful suite of RBC Quant Dividend Leaders and RBC Quant Equity Leaders ETFs, which feature a disciplined investment process and competitive fees.”

The RBC Strategic Global Dividend Leaders ETF (RLD) employs a multi-factor approach to security selection whereby financially sound companies, as determined through a rules-based balance sheet analysis, with high dividend yields and potential for growth, are selected for investment. A management fee of 0.55% is applicable.

The RBC Strategic Global Equity Leaders ETF (RLE) seeks long-term asset growth from high quality global companies by employing the rules-based Quant Equity Leaders investment process. This methodology conducts an initial screen to exclude firms with below standard earnings quality. Further screens which seek to promote characteristics of high growth and attractive valuations within the final constituents are also applied. The fund has ongoing fees of 0.55%.

The RBC Quant Emerging Markets Equity Leaders ETF (RXE) also follows the rules-based Quant Equity Leaders investment methodology but focuses on companies listed in developing markets. The fund has been listed in both Canadian and US dollar denominated share classes and has a management fee of 0.64%.

The RBC 1-5 Year Laddered Canadian Bond ETF (RLB) aims to enhance yield while providing steady income through investment in Canadian investment grade corporate and government bonds. Interest rate risk is managed through equal 20% allocations across the maturity spectrum between 1-5 years. The fund invests 70% of its assets in ETFs covering investment grade Canadian corporate bonds and 30% directly in Canadian government bonds. A management fee of 0.22% applies.

 

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