RBC iShares Expands its Fixed Income Lineup with the addition of Five Fixed Income ETFs
TORONTO, July 12, 2021 (GLOBE NEWSWIRE) -- Today, RBC iShares expanded its exchange traded fund (“ETF”) lineup with the launch of five new fixed income ETFs.
The five ETFs (collectively the “iShares ETFs”) are listed in the table below and 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 certain iShares ETFs, as identified in the table below, also offer a class of U.S. dollar denominated units (“USD Units”).
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.
Steven Leong, Head of iShares Product, BlackRock Canada:
“With the launch of these new ETFs, RBC iShares continues to deliver high quality fixed income strategies to support portfolio construction, helping advisors and investors meet their long-term investment objectives. With both low interest rates and inflation top of mind today, these new ETFs give investors additional tools to diversify their fixed income portfolios, enabling easy access to U.S. corporate bonds and inflation-linked bonds.”
The addition of the iShares ETFs further broadens RBC iShares’ breadth of cost-competitive 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 clients.
The iShares U.S. IG Corporate Bond Index ETF, iShares 1-5 Year U.S. IG Corporate Bond Index ETF and iShares 1-5 Year U.S. IG Corporate Bond Index ETF (CAD-Hedged) provide exposure to the U.S. dollar-denominated investment grade corporate bond market. The iShares 0-5 Year TIPS Bond Index ETF and iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged) provide exposure to inflation-indexed U.S. Treasury bonds with remaining maturities of less than five years.
Fund Name | CAD Units Ticker | USD Units Ticker | Annual Management Fee1 |
iShares U.S. IG Corporate Bond Index ETF | XCBU | XCBU.U | 0.30% |
iShares 1-5 Year U.S. IG Corporate Bond Index ETF | XSHU | XSHU.U | 0.15% |
iShares 1-5 Year U.S. IG Corporate Bond Index ETF (CAD-Hedged) | XIGS | N/A | 0.15% |
iShares 0-5 Year TIPS Bond Index ETF | XSTP | XSTP.U | 0.15% |
iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged) | XSTH | N/A | 0.15% |
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: @BlackRockCA.
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 US$2.81 trillion in assets under management as of March 31, 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.
