Toronto-based RBC Global Asset Management Inc. has launched RBC U.S. Banks Yield Index ETF, which began trading on the Toronto Stock Exchange (ticker: RUBY) on Tuesday.
The new ETF tracks the Solactive U.S. banks yield index, following the performance of 21 of the largest U.S. dividend paying bank stocks, as measured by market capitalization and weighted based on their annual dividend yields. The management fee is 0.29%.
“Through our ongoing discussions with investors and advisors, there has been notable interest in further exposure to the U.S. banking sector,” says Mark Neill, head of RBC ETFs, in a statement.
“This is driven by a desire for more diversification in the financial sector and by recent trends in the U.S., such as strong growth signals and changing monetary policy that has created a positive long-term outlook for U.S. banks,” he adds.
The ETF is also available in USD and CAD hedged options to encourage investors to choose their currency exposure.