RBC GAM launches income-oriented ETFs

How RBC’s asset management division expanded its ETF lineup

RBC Global Asset Management has launched four new ETFs that aim to provide steady income for investors.

“Navigating through today's complex markets can be a challenge and Canadian investors continue to seek solutions that manage risks and provide stable income beyond what a typical government bond fund can offer," said Mark Neill, head of RBC ETFs. "We are pleased to address this need by expanding our offering of ETFs that are designed to take advantage of income opportunities that exist in today's low-yield environment."

The first new product, RBC Canadian Preferred Share ETF (RPF), is “a high-quality actively managed preferred share solution.” By cherry-picking and investing in rate reset preferred shares of Canadian companies, it aims to provide regular dividend income. Access to a diversified portfolio of preferred shares lets this solution reduce single-issuer risk. With a management fee of 0.53%, it is the lowest-cost active preferred share ETF in Canada.

RBC Quant Global Infrastructure Leaders ETF (RIG), on the other hand, is a global equity income solution. A rules-based, multi-factor approach is used to build a global portfolio of listed infrastructure companies. Its innovative approach to weighting and quarterly reconstitution enhances its risk-return characteristics. The management fee for this fund is 0.55%, and it is also available in a US dollar option.

The last two new ETFs, RBC Target 2022 Corporate Bond Index ETF (RQJ) and RBC Target 2023 Corporate Bond Index ETF (RQK), make up the RBC Target Maturity Corporate Bond ETFs family. They are target maturity ETFs, which means they have a specified maturity date established upon their launch; when the ETF reaches the maturity date, its final net asset value is returned to current unitholders. These ETFs are a more diversified alternative to holding individual corporate bonds, which means less issuer risk for investors.

"As Canada's leading provider of income solutions, we are pleased to continue to offer new investment vehicles that meet the evolving needs of investors and advisors," said Doug Coulter, president of RBC GAM Inc.

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