RBC iShares Launches Three New Bond & Covered Call ETFs

RBC iShares, a collaboration between RBC Global Asset Management Inc. and BlackRock Canada, has announced the launch of three new exchange-traded funds (ETFs) on the Toronto Stock Exchange (TSX). The newly introduced ETFs are the RBC U.S. Discount Bond ETF (RUDB), RBC U.S. Discount Bond (CAD Hedged) ETF (RDBH), and USD units of RBC U.S. Dividend Covered Call ETF (RUDC.U).

The RBC U.S. Discount Bond ETF and RBC U.S. Discount Bond (CAD Hedged) ETF provide investors with exposure to a diversified portfolio of primarily short-term bonds issued in the U.S. market. These ETFs focus on bonds that are trading below the average price of the U.S. short-term bond universe at the time of purchase. The RBC U.S. Discount Bond (CAD Hedged) ETF also hedges currency fluctuations between the U.S. and Canadian dollar. Both ETFs aim to deliver attractive after-tax yield to maturity relative to other U.S. high-quality fixed income solutions.

The RBC U.S. Dividend Covered Call ETF (USD Units) is an extension of the recently launched RBC U.S. Dividend Covered Call ETF. The new unit option allows Canadian advisors and investors to purchase and receive distributions of the ETF in U.S. dollars.

All three ETFs are actively managed by RBC Global Asset Management, leveraging their expertise in active fixed income portfolio management.

Mark Neill, head of RBC ETFs at RBC Global Asset Management, expressed enthusiasm for expanding the discount bond offering to cover the U.S. market. The RBC Canadian Discount Bond ETF, launched in 2019, has been well-received, and this expansion provides clients with greater geographic diversification within their fixed income portfolios

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