RBC GAM launches U.S. Banks Yield Index ETF

RBC Global Asset Management’s new RBC U.S. Banks Yield Index ETF began trading Tuesday on the TSX.

The ETF tracks the Solactive U.S. Banks Yield Index, which follows the performance of 21 of the largest U.S. dividend-paying bank stocks, as measured by market capitalization and weighted based on their annual dividend yields, an RBC release said. The management fee for the ETF is 0.29% and it will trade using the ticker RUBY.

The new ETF is also available in U.S. dollar and Canadian dollar hedged options to allow investors to choose their currency exposure, the release said. RBC GAM now offers 36 ETFs.

Mark Neill, head of RBC ETFs, said in the release that investors are interested in exposure to the U.S banking sector.

“This is driven by a desire for more diversification in the financial sector and by recent trends in the U.S., such as strong growth signals and changing monetary policy that has created a positive long-term outlook for U.S. banks,” he said.

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Staff

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