RBC launches four new ETFs

Toronto-based RBC Global Asset Management Inc. (RBCGAM) has launched four new exchange-traded funds (ETFs): RBC 1-5 Year Laddered Corporate Bond ETF, RBC Quant U.S. Dividend Leaders ETF, RBC Quant Canadian Dividend Leaders ETF and RBC Quant EAFE Dividend Leaders ETF. These ETFs provide clients with the opportunity to generate regular monthly income. The U.S. and EAFE Quant Dividend Leader ETFs are not currency-hedged and are available for purchase in Canadian-dollar and U.S.-dollar units. The three RBC Quant Dividend Leaders ETFs are managed by Bill Tilford, head of quantitative investments with RBCGAM. The RBC 1-5 Year Laddered Corporate Bond ETF will be managed by Tom Drake, corporate bond trader with RBCGAM, and aims to provide exposure to a diversified portfolio of individual Canadian investment-grade corporate bonds by holding units in RBC Target Maturity Corporate Bond ETFs. Management fees are 0.39% for RBC Quant Canadian Dividend Leaders ETF and RBC Quant U.S. Dividend Leaders ETF; 0.49% for RBC Quant EAFE Dividend Leaders ETF; and 0.25% for RBC 1-5 Year Laddered Corporate Bond ETF. In addition, RBC Target 2014 Corporate Bond ETF has reduced its management fee to 0.2% and the management fees on seven of the existing RBC Target Maturity Corporate Bond ETFs (with maturity years ranging from 2015 through 2021) have been reduced to 0.25% from 0.30%.

(cohara@investmentexecutive.com).