RBC's five new ETFs will make monthly income payouts

Rudy Luukko 19 October, 2017 | 5:00PM

RBC Global Asset Management Inc. (RBC GAM) today launched four actively managed exchange-traded funds in fixed-income categories, along with a passive index ETF investing in the largest Canadian bank stocks.

Listed on the Toronto Stock Exchange, the new offerings are:

RBC BlueBay Global Diversified Income (CAD Hedged), managed by London-based BlueBay Asset Management LLP, an affiliate of RBC GAM. This ETF will invest primarily in investment-grade and high-yield bonds of corporate issuers in developed markets, along with emerging-market government and corporate bonds. As noted in the prospectus, the ETF may also hold asset-backed securities and loans.

RBC PH&N Short Term Canadian Bond, managed by Phillips, Hager & North Investment Management, part of RBC GAM. It will Invest primarily in high-quality short-duration Canadian corporate and government bonds, along with money-market instruments.

RBC 6-10 Year Laddered Canadian Corporate Bond, a rules-based portfolio of Canadian bonds with terms to maturity ranging from six to 10 years.

RBC Short-Term U.S. Corporate Bond, investing primarily in short-duration U.S. corporate bonds. RBC GAM describes it as the first actively managed short-term U.S. fixed- income ETF in Canada. This ETF is available in either Canadian-dollar-denominated units (RUSB) or a U.S.-dollar version (RUSB.U).

RBC Canadian Bank Yield Index, which invests in the largest six Canadian bank stocks. Its reference index is the Solactive Canada Bank Yield Index.

All five new ETFs will make monthly distributions of income. The management fees (see table below) also cover most expenses.

With the new additions to its line-up, the $4-billion family of RBC ETFs now has a total of 40 funds and 50 listings, since some of its funds have more than one class of unit.

ETF name Symbol Mgmt fee (%)
RBC BlueBay Global Diversified Income (CAD Hedged) RBDI 0.60
RBC PH&N Short Term Canadian Bond RPSB 0.35
RBC 6-10 Year Laddered Canadian Corporate Bond RMBO 0.25
RBC Short-Term U.S. Corporate Bond RUSB
RUSB.U
0.35
RBC Canadian Bank Yield Index RBNK 0.29
Source: RBC Global Asset Management Inc.

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.