RBC to cut fees on target date ETFs

RBC Global Asset Management is cutting the management fee of each RBC Target Maturity Corporate Bond ETF to 0.20%, but not until January 1 of the ETF’s year of maturity.

The reduction reflects the change in the investment management requirements of the ETF as the bonds it holds mature during the maturity year and as its portfolio transitions to cash and cash equivalents.

The firm also announced it would change the name of these ETFs, effective Wednesday, February 29. On that date, the word “index” will be inserted; for example, the RBC Target 2013 Corporate Bond ETF will become the RBC Target 2013 Corporate Bond Index ETF.

The investment objectives and strategies of the RBC Target Maturity Corporate Bond ETFs have not changed.

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