RBC GAM makes changes to ETF risk ratings

RBC Global Asset Management Inc. (RBC GAM) has made changes to the risk ratings of certain ETFs. These changes will be reflected in the prospectus updates filed for these ETFs on or about April 25.

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Risk rating increases

• The RBC Quant Global Real Estate Leaders ETF went from “Medium” to “Medium to High.”

Risk rating decreases

• The RBC Canadian Preferred Share ETF and RBC Quant Global Infrastructure Leaders ETF went from “Medium” to “Low to Medium.”
• The RBC Quant Emerging Markets Dividend Leaders ETF and RBC Quant Emerging Markets Equity Leaders ETF went from “High” to “Medium to High.”

The changes are based on the methodology mandated by Canadian Securities Administrators to determine the risk level of ETFs. RBC GAM reviews the risk rating for each ETF on an annual basis, as well as when an ETF undergoes a material change. These changes are the result of an annual review and are not a result of any changes to the investment objectives, strategies or management of the funds.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.