RBC Financial Group today announced the introduction of the RBC Principal Protected Dow 10 LEOS (Liquid Equity Option-linked noteS) aimed at risk-averse retail investors looking to expand their portfolio with U.S. blue chip equity returns.

The Dow 10 index is made up of the 10 highest dividend-yielding equities in the Dow Jones industrial average.

The notes are available to self-directed investors, as well as through investment advisors and financial planners up until March 25. RBC says the notes are 100% RRSP eligible, and will not affect the 30% allowable foreign content in an investor’s RRSP portfolio.

“Investors today are looking for financial products that give them access to the upside return potential of U.S. blue chip equities,” said Andre Colenbrander, managing director, RBC Capital Markets. “The RBC Dow 10 LEOS offer investors 100 per cent principal protection with returns linked to the full upside price performance of the Dow 10 Index(SM).”

The notes have a maturity date of April 1, 2013 but could be called by RBC at the four-year anniversary date for a price of $13.80 per $10 note. Should the RBC notes be called at this price, an investor would realize an 8.39% annualized return.

As of January 20, 2005, the members of the Dow 10 index are: Altria Group Inc.; Citigroup; E.I. du Pont de Nemours and Co.; General Motors Corp.; JP Morgan Chase & Co.; Merck & Co. Inc.; Pfizer Inc.; SBC Communications Inc.; The Coca-Cola Co.; and Verizon Communications Inc.