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Four of the new funds are focused on fixed-income strategies while the other invests in bank stocks

By James Langton |

 

Toronto-based RBC Global Asset Management Inc. (RBC GAM) has launched five new ETFs that began trading on the Toronto Stock Exchange on Thursday.

Four of the new ETFs will leverage the investment capabilities of the fixed-income teams at RBC GAM, which includes Vancouver-based Phillips, Hager & North Investment Management (PH&N) and London, U.K.-based BlueBay Asset Management LLP.

The four fixed-income ETFs are:

> RBC PH&N Short Term Canadian Bond ETF, which invests mainly in a diversified portfolio of short duration Canadian government and corporate bonds, in addition to Canadian bonds issued by foreign corporations. The ETF is actively managed by the fixed income investment team at PH&N and seeks to provide monthly income and stability of capital. The management fee is 0.35%.

> RBC 6-10 Year Laddered Canadian Corporate Bond Ladder ETF, which contains a rules-based, actively managed portfolio of Canadian bonds with a term to maturity ranging from six to 10 years. The ETF offers regular monthly income and delivers staggered maturities that seek to reduce interest rate risk. The management fee is 0.25%.

> RBC Short-Term U.S. Corporate Bond ETF, which invests mostly in short duration U.S. corporate bonds, is the first active short-term U.S. fixed-income ETF in Canada. The ETF seeks to provide investors with attractive yield and potential for modest capital appreciation. The management fee is 0.35%.

> RBC BlueBay Global Diversified Income (CAD HEDGED) ETF, which consists of a diversified global bond portfolio intended to maximize yield for a particular level of credit risk by targeting bonds with the most attractive yield characteristics. The ETF offers investors a way to access attractive monthly income from a specialty global fixed-income strategy. The management fee is 0.60%

In addition to these four ETFs, RBC GAM has introduced RBC Canadian Bank Yield Index ETF, which tracks the performance of a portfolio of the largest six Canadian bank stocks.

The ETF seeks to offer investors an efficient way to invest in the Canadian banks and an attractive source of tax-efficient income. The management fee is 0.29%.

"This year, we have significantly expanded our ETF line-up in response to continued strong demand from investors and advisors, " says Mark Neill, head of RBC ETFs, in a statement. "We now manage more than $4 billion in ETF assets and with the addition of these five funds, we now have 40 funds and 50 tickers."

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