RBC's global real-estate ETF employs rules-based strategy

Morningstar Canada 9 May, 2017 | 5:00PM

RBC Quant Global Real Estate Leaders (symbol: RGRE) opened for trading today on the Toronto Stock Exchange.

Managed internally by a team led by Bill Tilford, head of quantitative investments at RBC Global Asset Management Inc., the exchange-traded fund employs a rules-based, multi-factor approach. Its strategy is to invest in real estate investment trusts and real estate operating companies with attractive yields, strong balance sheets and stable cash flow.

According to the prospectus, the fund managers will employ a weighting methodology designed to reduce the dispersion of weights between larger and smaller-capitalization securities. The portfolio holdings will be reconstituted and rebalanced quarterly. Income distributions are to be made monthly.

The management fee of 0.55% also covers most of the ETF's expenses. Also available is a U.S.-dollar version, which has the ticker symbol RGRE.u.

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