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RBC ETFs invest in largest U.S. banks

Rudy Luukko 15 May, 2018 | 5:00PM

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.

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About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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