RBC iShares expands ETF lineup with the introduction of RBC AAA CLO (CAD Hedged) ETF Français
TORONTO, May 28, 2025 /CNW/ - RBC iShares today expanded its exchange traded fund lineup with the launch of RBC AAA CLO (CAD Hedged) ETF (the "ETF"). The ETF is managed by RBC Global Asset Management Inc. and is expected to begin trading on Cboe Canada today.
Offering Canadian investors and advisors access to the collateralized loan obligations ("CLO") market which has historically mostly been available to large, institutional investors, the ETF will invest primarily in a diversified portfolio of high-quality AAA rated CLO debt tranches issued by issuers located primarily in the U.S., with the ability to invest in CLO debt tranches issued by issuers located in Europe. As part of its investment strategy, the ETF also seeks to minimize its exposure to currency fluctuations between foreign currencies and the Canadian dollar.
The ETF leverages the investment expertise of the BlueBay Fixed Income Global CLO & Securitized Credit team. Created in 2018, the team consists of nine portfolio managers who currently manage approximately USD $9.0 billion in securitized credit, including USD $4.2 billion in CLOs across the U.S. and Europe. Their active management approach focuses on capital preservation, alpha generation, relative value and diversification, and they specialize in adding value through security selection, credit analysis and risk management.
"Globally, investing in CLOs is a growing segment due to the benefits they have historically provided to investors compared to traditional fixed income investments, including with regards to yields, lower volatility and default rates and portfolio diversification," said Mark Neill, Managing Director and Head of RBC ETFs and Strategic Alliances, RBC Global Asset Management Inc. "RBC AAA CLO (CAD Hedged) ETF is managed by the BlueBay Fixed Income Global CLO & Securitized Credit team, providing investors in the ETF with exposure to an experienced management team. By launching the ETF, RBC iShares is providing Canadian investors and advisors with access to an investment strategy historically available to mostly large, institutional investors, with the transparency and liquidity of an ETF structure."
To learn more about RBC AAA CLO (CAD Hedged) ETF, please visit https://www.rbcgam.com/what-is-a-clo.
RBC iShares aims to help clients achieve their investment objectives by empowering them to build efficient portfolios and take control of their financial futures. RBC iShares is committed to delivering a truly differentiated ETF experience and positive outcomes for clients.
For further information regarding RBC ETFs, please visit www.rbcgam.com/etfsolutions.
RBC iShares ETFs are comprised of RBC ETFs and ETF Series of RBC Funds managed by RBC Global Asset Management Inc. ("RBC GAM Inc.") and iShares ETFs managed by BlackRock Asset Management Canada Limited. Commissions, management fees and expenses all may be associated with investments in exchange-traded funds ("ETFs"). Please read the applicable prospectus or ETF Facts document before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. RBC ETFs are managed by RBC GAM Inc., a member of the RBC GAM group of companies and an indirect wholly-owned subsidiary of Royal Bank of Canada.
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 98,000+ 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 more than 19 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/peopleandplanet.
About RBC Global Asset Management
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC). 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. RBC Funds, BlueBay Funds, PH&N Funds and RBC ETFs are offered by RBC Global Asset Management Inc. (RBC GAM Inc.) and distributed through authorized dealers in Canada. The RBC GAM group of companies, which includes RBC GAM Inc. (including PH&N Institutional), manage approximately $710 billion in assets and have approximately 1,600 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 ETFs
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds (ETFs) and US$4.3 trillion in assets under management as of March 31, 2025, 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.
SOURCE RBC Global Asset Management Inc.
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