TORONTO, Jan. 17,
2023 /CNW/ - RBC iShares today announced the launch
of RBC Canadian Dividend Covered Call ETF and RBC U.S. Dividend
Covered Call ETF (collectively, "the Covered Call ETFs"). The new
Covered Call ETFs are managed by RBC Global Asset Management Inc.
("RBC GAM Inc."), and are expected to begin trading on the Toronto
Stock Exchange today.
Designed for investors seeking a current source of income while
mitigating some downside risk, the Covered Call ETFs leverage RBC
GAM Inc.'s long-standing expertise in active management, combining
the selection of stocks that are expected to provide dividends with
an active covered call writing strategy. The solutions will seek to
provide exposure to the performance of a diversified portfolio of
Canadian or U.S. equity securities, as applicable, that are
expected to provide regular income from dividends and have the
potential for long term capital growth while mitigating some
downside risk through the use of covered call options.
Fund
Name
|
Ticker
|
Annual
Management Fee
|
|
RBC Canadian Dividend
Covered Call ETF
|
RCDC
|
0.64 %
|
|
RBC U.S. Dividend
Covered Call ETF
|
RUDC
|
0.64 %
|
|
|
|
|
|
The Covered Call ETFs will be managed by RBC GAM Inc.'s North
American Equities team.
"In response to today's uncertain market environment, investment
solutions offering enhanced income streams with some ability to
reduce volatility have become attractive to investors," said
Stu Kedwell, Senior Vice President
and Senior Portfolio Manager, Co-Head of North American Equities,
RBC Global Asset Management Inc. "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."
More information about the Covered Call ETFs can be found
here.
RBC iShares are ETFs comprised of RBC ETFs managed by RBC Global
Asset Management Inc. and iShares ETFs managed by BlackRock Asset
Management Canada Limited. Commissions, trailing commissions,
management fees and expenses all may be associated with investing
in ETFs. Please read the relevant prospectus before investing. ETFs
are not guaranteed, their values change frequently and past
performance may not be repeated. Tax, investment and all other
decisions should be made, as appropriate, only with guidance from a
qualified professional.
About RBC
Royal Bank of Canada is a
global financial institution with a purpose-driven, principles-led
approach to delivering leading performance. Our success comes from
the 95,000+ employees who leverage their imaginations and insights
to bring our vision, values and strategy to life so we can help our
clients thrive and communities prosper. As Canada's biggest bank and one of the largest
in the world, based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn
more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
About RBC Global Asset
Management
RBC Global Asset Management (RBC GAM) is the asset
management division of Royal Bank of Canada (RBC) and includes money managers
BlueBay Asset Management and Phillips, Hager & North Investment
Management. RBC GAM is a provider of global investment management
services and solutions to institutional, high-net-worth and
individual investors through separate accounts, pooled funds,
mutual funds, hedge funds, exchange-traded funds and specialty
investment strategies. The RBC GAM group of companies manage
approximately $540 billion in assets
and have approximately 1,500 employees located across Canada, the United
States, Europe and
Asia.
About BlackRock
BlackRock's purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
provider of financial technology, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate.
About iShares
iShares unlocks opportunity across markets to meet the evolving
needs of investors. With more than twenty years of experience, a
global line-up of 1300+ exchange traded funds (ETFs) and
US$2.91 trillion in assets under
management as of December 31, 2022,
iShares continues to drive progress for the financial industry.
iShares funds are powered by the expert portfolio and risk
management of BlackRock.
SOURCE RBC Global Asset Management Inc.