RBC iShares is expanding their actively managed ETF suite with the launch of two cover call funds, the RBC Canadian Dividend Covered Call ETF (RCDC) and the RBC U.S. Dividend Covered Call ETF (RUDC). Both funds seek to offer income while mitigating downside risk by using an active covered call writing strategy with a group of stocks, either Canadian or U.S., that are expected to provide dividends. A quote from the Senior Vice President and Portfolio Manager at RBC regarding the launch states, “In response to today’s uncertain market environment, investment solutions offering enhanced income streams with some ability to reduce volatility have become more attractive to investors… The RBC covered call ETFs are designed to meet this need, utilizing RBC Global Asset Management’s demonstrated expertise in active dividend investing combined with our capabilities in option writing.”
ETF Newz Says:
RCDC and RUDC will both have an annual management fee of 0.64%.