RBC launches its first ETFs

Just when you thought the ETF market was saturated, a new player rolls out its initial offering.

Advisor.ca broke the news of RBC entering the ETF market in July, and today the bank’s asset management division launched eight corporate bond ETFs on the Toronto Stock Exchange.

According to RBC Global Asset Management, its RBC Target Maturity Corporate Bond ETFs are designed to act like individual bonds. They’ll combine the diversification and oversight of a mutual fund with the transparency and intra-day liquidity of an ETF.

Each RBC ETF provides investors with exposure to the Canadian investment grade corporate bond market by seeking to replicate the performance of the corresponding DEX Maturity Canadian Corporate Bond Index that matures in the same year as the RBC ETF.

Earn CE credits on ETFs

• Fundamental vs. Traditional Index Investing
• The Place of ETFs in Portfolio Allocation and Diversification
• Benefits of Combining Active and Index-based Investing Strategies
• Pension Investing with ETFs

“Clients and advisors have been enquiring about an ETF offering of this kind for some time and we are very pleased to be able to bring this innovative structure to market,” said John Montalbano, chief executive officer, RBC GAM. “The new suite of RBC ETFs illustrates our commitment to meeting the evolving needs of investors and delivering added value investment solutions that enable investors to construct diverse portfolios reflective of their individual profiles.”

Cary Blake, vice-president, RBC GAM, added, “The RBC Target Maturity Corporate Bond ETFs fill a gap in the investment landscape, offering advisors increased flexibility to tailor their bond laddering strategies for clients, serve as a source of cash to match large known future liabilities, and capture perceived opportunities at particular points on the yield curve.”

The eight target maturities on the ETFs range from 2013 to 2020, at increments of one year. RBC Dexia Investor Services will provide custody and fund administration for the suite of RBC ETFs.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.