RBC Global Asset Management Inc. has launched a passive strategy of investing in the largest U.S. banks, available as either non-hedged or currency-hedged exchange-traded funds.
RBC U.S. Banks Yield Index (symbol: RUBY) and its U.S.-dollar-denominated class of shares (RUBY.u), along with RBC U.S. Banks Yield (CAD Hedged) Index (RUBH), opened for trading today on the Toronto Stock Exchange. The management fee for both new ETFs is 0.29%, which includes most expenses.
The benchmark index for the ETFs is the Solactive U.S. Banks Yield Index and its currency-hedged counterpart. The index constituents are 21 of the largest U.S. dividend-paying bank stocks, as measured by market capitalization. They are weighted in the index on the basis of their annual dividend yields.