TORONTO, Aug. 12, 2021 (GLOBE NEWSWIRE) — 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.
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
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.