RBC iShares has launched the RBC Canadian Discount Bond ETF, which began trading on the NEO Exchange on Wednesday.

The fund, managed by Toronto-based RBC Global Asset Management Inc. (RBC GAM), will purchase short-term Canadian government and corporate bonds, with an emphasis on bonds priced below par. It has a management fee of 0.15%.

In a release, RBC GAM said the ETF is designed to “shorten duration, improve capital preservation as well as tax efficiency of investors’ fixed income portfolios.”