Product news: RBC and Manulife offer new active fixed-income ETFs

RBC Global Asset Management Inc. has launched a U.S. version of its popular fixed-income ETF focused on short-term bonds trading at a discount.

The RBC U.S. Discount Bond ETF (TSX: RUDB) provides exposure to short-term U.S. government and corporate bonds issued in the U.S. The actively managed fund focuses on securities trading below the average price of the U.S. short-term bond universe, the firm said, and aims to offer a mix of capital gains and interest income.

The RBC Canadian Discount Bond ETF (NEO: RCDB), launched in 2019, has more than $866 million in assets.

RBC is also offering a currency-hedged version of the new U.S. ETF (TSX: RDBH). The management fee for both versions, which began trading on Thursday, is 0.25%, and the risk rating is low to medium.

Earlier this month, the asset manager released six RBC Target Maturity Government Bond ETFs, complementing its suite of target-date corporate bond ETFs launched in 2018.

The government bond ETFs hold a mix of federal, provincial and agency bonds with the same maturity dates as the ETFs (which range from 2024 to 2029). The funds’ management fee is 0.15%, and the risk rating is low.

Keeping with active fixed income, Manulife Investment Management launched two new ETFs focused on dividends and bonds.

The Manulife Smart Global Dividend ETF Portfolio (NEO: GDIV) is a fund of funds that invests in Manulife ETFs focused on global dividend-paying securities. The fund’s asset allocation process allows the manager to make tactical calls based on market conditions, with a maximum 20% of assets allocated to cash-equivalent or short-term bond ETFs. The management fee is 0.35%, and the risk rating is medium.

The Manulife Smart Global Bond ETF (NEO: GBND) invests mostly in global investment-grade bonds, though it may also invest in high-yield securities directly, through derivatives or through other funds. The fund tends to hold fewer bonds than passive ETFs, the firm said. The management fee is 0.40%, and the risk rating is low.

CI expands commodity suite

CI Global Asset Management launched liquid alternative mutual fund versions of its CI Auspice Broad Commodity ETF (TSX: CCOM), which began trading last September. The fund invests in futures contracts and derivatives to provide exposure to energy, metals and agriculture, seeking to replicate the performance of the Auspice Broad Commodity Excess Return Index.

The mutual fund units were introduced with the adoption of a dual-class structure for the ETF, a release said. As a result, the ETF’s name was changed to the CI Auspice Broad Commodity Fund. The management fee on Series A units is 1.52%, and 0.52% for Series F and the ETF. The risk rating is low to medium.

Evolve shutters real estate fund

Evolve Funds Group Inc. is winding down the Evolve Slate Global Real Estate Enhanced Yield Fund (TSX: BILT), an income ETF holding real estate companies that launched last fall. The fund will be terminated around Aug. 10. In a difficult environment for many publicly listed real estate firms, the fund’s assets under management totalled $1.8 million on May 17.

If you have investment product news, email Mark Burgess at markb@newcom.ca.