RBC iShares Expands its Sustainable ETF Platform and Fixed Income Lineup with the addition of Four ETFs
August 12 2021 - 6:00AM
Today, RBC iShares expanded its exchange traded fund (“ETF”) lineup
with the launch of four new fixed income ETFs (collectively the
“iShares ETFs”), including two sustainable fixed income ETFs. All
four iShares ETFs are expected to begin trading on the Toronto
Stock Exchange (the “TSX”) today.
The new iShares ETFs will be managed by
BlackRock Asset Management Canada Limited (“BlackRock Canada”), an
indirect wholly-owned subsidiary of BlackRock, Inc. All iShares
ETFs offer one class of Canadian dollar denominated units (“CAD
Units”) and the iShares U.S. Aggregate Bond Index ETF also offers
one class of U.S. dollar denominated units (“USD Units”).
New Sustainable Corporate Bond
ETFs The
new sustainable fixed income ETFs build on upon the success of RBC
iShares’ existing ESG Advanced suite, and expand sustainable
coverage into corporate bonds. The iShares ESG Advanced 1-5 Year
Canadian Corporate Bond Index ETF and iShares ESG Advanced Canadian
Corporate Bond Index ETF provide exposure to the Canadian dollar
investment grade corporate bond market, and currently seek to track
indices that are designed to provide efficient exposure to
companies demonstrating more sustainable business practices
relative to their industry peers, while also excluding issuers from
industries with elevated sustainability-related risks. These ETFs
can be used as sustainable fixed income building blocks for the
core of a portfolio.
Fund Name |
CAD Units Ticker |
USD Units Ticker |
Annual Management Fee |
iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index
ETF |
XSHG |
N/A |
0.15% |
iShares ESG Advanced Canadian Corporate Bond Index ETF |
XCBG |
N/A |
0.15% |
Sustainable investing continues to gain
importance, as investors and advisors seek to assemble portfolios
built for the long-term, and account for potential sustainability
related risks in their portfolio. As awareness increases, a growing
number of Canadian investors and advisors are re-allocating assets
into this category.
Steven Leong, Head of iShares Product,
BlackRock Canada:
“Through the launch of these new ETFs, RBC
iShares continues to deliver the broadest range of sustainable ETFs
in Canada, to support portfolio construction among Canadian
investors and meet the growing demand for sustainable strategies.
With both low interest rates and sustainability top of mind among
investors and advisors, these new ETFs provide additional tools to
construct sustainable portfolios, offering exposure to ESG-oriented
portfolios of Canadian corporate bonds.”
New U.S. Aggregate Bond
ETFs
The iShares U.S. Aggregate Bond Index ETF and
iShares U.S. Aggregate Bond Index ETF (CAD-Hedged) provide exposure
to the U.S. dollar-denominated investment grade corporate bond
market. Combined with the existing comprehensive suite of U.S.
fixed income exposures offered by RBC iShares, these new ETFs
provide efficient access to the deepest and most liquid bond market
in the world.
Fund Name |
CAD Units Ticker |
USD Units Ticker |
Annual Management Fee1 |
iShares U.S. Aggregate Bond Index ETF |
XAGG |
XAGG.U |
0.18% |
iShares U.S. Aggregate Bond Index ETF (CAD-Hedged) |
XAGH |
N/A |
0.18% |
The addition of the iShares ETFs further
broadens RBC iShares’ breadth of cost-competitive Canadian and U.S.
fixed income exposures, by providing advisors and investors with
the ability to invest in currency hedged, non-hedged, and U.S.
dollar denominated units. RBC iShares aims to help clients achieve
their investing goals by empowering them to pursue better ways to
invest and take control of their financial futures. RBC iShares is
committed to delivering a truly differentiated ETF experience and
positive outcomes for Canadian investors and advisors.
Purchases and sales of CAD Units and USD Units
on the TSX, and payment of cash distributions, subscriptions,
exchange proceeds and redemption proceeds, will generally be made
in Canadian dollars and U.S. dollars, respectively.
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 |
Twitter: @blackrock |
LinkedIn: www.linkedin.com/company/blackrock
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 900+ exchange traded funds
(ETFs) and $3.03 trillion in assets under management as of June 30,
2021, iShares continues to drive progress for the financial
industry. iShares funds are powered by the expert portfolio and
risk management of BlackRock.
iShares ETFs are managed by BlackRock Asset
Management Canada Limited. 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 $550 billion in assets
and have approximately 1,500 employees located across Canada, the
United States, Europe and Asia.
RBC iShares ETFs are 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.
® / TM Trademark(s) of Royal Bank of Canada.
Used under license. iSHARES is a registered trademark of BlackRock,
Inc., or its subsidiaries in the United States and elsewhere. Used
under license. © 2021 BlackRock Asset Management Canada Limited and
RBC Global Asset Management Inc. All rights reserved.
For more information, please
contact:
Grace Christus, BlackRock Communications, 1 646
231 8710
1 If applicable, BlackRock Canada or an
affiliate is entitled to receive a fee for acting as manager of
each ETF managed by BlackRock Canada or an affiliate (“iShares
ETF”) in which this ETF may invest (an “underlying product fee” and
together with the management fee payable to BlackRock Canada, the
“total annual fee”). As the underlying product fees are embedded in
the market value of the iShares ETFs in which this ETF may invest,
any underlying product fees are borne indirectly by this ETF.
BlackRock Canada will adjust the management fee payable to it by
this ETF to ensure that the total annual fees paid directly or
indirectly to BlackRock Canada and its affiliates by this ETF will
not exceed the percentage of the net asset value set out in this
table. The total annual fee is exclusive of HST. Any underlying
product fees borne indirectly by this ETF are calculated and
accrued daily and are paid not less than annually.
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