Product roundup: RBC iShares brings new fixed-income ETFs to market

The funds are managed by RBC Global Asset Management Inc. (RBC GAM Inc.) and began trading on the Toronto Stock Exchange on April 2.

“Fixed income is a key component of portfolio construction, and Canadian investors and advisors are looking for solutions which help navigate an increasingly complex market,” said Stephen Hoffman, managing director of ETFs with RBC GAM Inc., in a release. “RBC iShares is dedicated to bringing solutions to the market to help address this client need.”

RUST, which has a 0.20% management fee, invests primarily in a diversified portfolio of Canadian investment-grade, short-term corporate bonds with a targeted term to maturity of less than one year. The fund is actively managed and “seeks to provide investors with regular income while preserving capital via downside protection in volatile markets,” the release said.

Meanwhile, RGQT, RQT and RUQT/RUQT.U provide access to a range of diversified bond portfolios that mature in 2031. RGQT has a 0.15% management fee, while RQT and RUQT/RUQT.U have a 0.20% management fee.

Those funds join the RBC target-maturity bond ETF suite, which has grown to some $4 billion in assets since its inception in 2011.

RBC iShares — a strategic alliance between RBC GAM Inc. and BlackRock Canada — has the highest ETF market share in Canada, with more than 200 funds across various asset classes and strategies.

Invesco launches equal-weighted ETF

Invesco Canada Ltd. has expanded its equal-weighted ETF offerings.

On April 3, the firm announced the launch of the Invesco S&P/TSX 60 Equal Weight Index ETF (TSX: EQLT).

The fund invests primarily in equity securities of companies listed in Canada. It seeks to replicate the S&P/TSX 60 Equal Weight Index, the equally weighted version of the S&P/TSX 60, Canada’s headline large-cap benchmark.

EQLT has a 0.25% management fee.

It joins four other funds in Invesco Canada’s Equal Weighted ETF suite — the Invesco S&P 500 Equal Weight Index ETF (EQL, EQL.F, EQL.U), Invesco S&P 500 Equal Weight Income Advantage ETF (EQLI), Invesco S&P Europe 350 Equal Weight Index ETF (EQE, EQE.F) and Invesco NASDAQ 100 Equal Weight Index ETF (QQEQ, QQEQ.F).

Franklin Templeton to terminate four funds

Franklin Templeton Canada will soon terminate four mutual funds.

The FT Balanced Growth Private Wealth Pool, FT Balanced Income Private Wealth Pool, FT Growth Private Wealth Pool and Franklin Martin Currie Improving Society Fund will be terminated on or around June 13, the firm announced in a release.

As of April 3, Franklin Templeton Canada stopped offering series A, F and O units of the funds for purchase to new and current investors.

By market close on June 13, investors who are still holding series A, F or O units of the terminated funds in non-registered accounts “will have their investments liquidated at fair market value,” with the proceeds sent to the investor or their dealer, the release noted.

Meanwhile, investors who hold the terminated funds in registered accounts will have their investments switched into the corresponding series A, F or O units of the Franklin Canadian Money Market Fund.

Franklin Templeton Canada said it will provide a notice to investors at least 60 days prior to the effective date of the terminations.

Investors will not have to pay any fees associated with the terminations.

Interactive Brokers launches forecast contracts in Canada

American multi-national brokerage firm Interactive Brokers, Inc. has launched forecast contracts in Canada.

In essence, forecast contracts are financial instruments that allow investors to bet on the outcome of specific events including economic data releases, political decisions and climate trends. Investors can buy a “yes” or “no” contract, depending on their prediction of an event’s income, such as inflation rising above a certain level.