RBC Global Asset Management has launched five exchange traded funds (ETFs) providing access to international markets and reduced exposure to foreign currency risk.
All five ETFs are now available for purchase on the Toronto Stock Exchange (TSX).
"Our ongoing discussions with investors and advisors indicated a need for better income-generating solutions that provide international diversification and limit foreign currency risk," says Mark Neill, head of RBC ETFs. "These new ETFs build upon our successful suite of RBC Quant Dividend Leaders ETFs, which feature a forward-looking investment approach, superior portfolio construction and competitive fees while offering additional global investment opportunities."
RBC Quant Emerging Markets Dividend Leaders ETF (RXD) seeks to provide regular income by focusing on companies domiciled in the emerging markets by following the rules-based Quant Dividend Leaders investment process which screens for income, financial strength and growth potential and applies a modified cap weighting methodology. This ETF has a management fee of 0.64 per cent. The ticker symbol "RXD" represents Canadian-dollar-denominated units, while the ticker symbol "RXD.u" represents US-dollar denominated units.
RBC Quant European Dividend Leaders ETF (RPD) seeks to provide regular income by focusing on companies domiciled in Europe by following the rules-based Quant Dividend Leaders investment process which screens for income, financial strength and growth potential and applies a modified cap weighting methodology. This is the first unhedged European dividend ETF in Canada and has a management fee of 0.49 per cent. The ticker symbol "RPD" represents Canadian-dollar-denominated units, while the ticker symbol "RPD.u" represents U.S.-dollar denominated units.
RBC GAM has also launched three new currency-hedged ETFs:
• RBC Quant US Dividend Leaders (CAD Hedged) ETF (RHU)
• RBC Quant European Dividend Leaders (CAD Hedged) ETF (RHP)
• RBC Quant EAFE Dividend Leaders (CAD Hedged) ETF (RHI)
The RBC Quant EAFE Dividend Leaders ETF is the first and only international dividend ETF available in Canada and it is now available in a currency-hedged option.
The five new ETFs launched bring the number of RBC Quant Dividend Leaders ETFs to eight, with four also available in US-dollar denominated units. Each RBC Quant Dividend Leaders ETF is managed by Bill Tilford, head of quantitative investments, RBC GAM, and a team of portfolio managers and analysts.
"More and more, investors are looking for global investment options that offer income and growth potential, and are easy to understand," Neill says. "These five new ETFs help address that need, as they have the potential to generate regular monthly incomes and capital growth. As Canada's leading provider of income solutions, we look forward to continuing to add more innovative products to RBC Global Asset Management's ETF family."
