RBO offers exposure to a diversified portfolio of shorter-term Canadian investment grade corporate bonds. It is an equal-weighted portfolio of five RBC Target Maturity Corporate Bond ETFs with maturities from one to five years.
RBO invests equally (20%) in five RBC Target Maturity Corporate Bond ETFs with maturities ranging from one to five years, offering investors a transparent and relatively consistent maturity profile.
To maintain the maturity profile, at the end of each year, RBO will sell its holdings in the ETF maturing within a year and buy the ETF maturing in five years. For example, in December 2018, RBO will sell the ETF maturing in 2019 (RQG) and will purchase the ETF maturing in 2024. Rebalancing to a 20% allocation to each maturity year will occur semi-annually.
RBO will pay out all net income on a monthly basis. The payout depends on the income stream from the underlying bonds held, and it may vary from month to month. The distributions are expected to be mostly interest income.
RBC Global Asset Management Inc. is Canada's largest fund company by assets under management (IFIC, as of August 31, 2017).
The FundGrade A+ rating is used with permission from Fundata Canada Inc., all rights reserved. Fundata is a leading provider of market and investment funds data to the Canadian financial services industry and business media. The FundGrade A+ rating identifies funds that have consistently demonstrated the best risk-adjusted returns throughout an entire calendar year. For more information on the rating system, please visit www.Fundata.com/ProductsServices/FundGrade.aspx
FTSE TMX Maturity Canada Corporate Bond Indices™ are trademarks of TSX Inc., a subsidiary of TMX Group Inc., and have been licensed for use for certain purposes to RBC Global Asset Management Inc. by FTSE TMX Global Debt Capital Markets Inc. The RBC ETFs are not sponsored, endorsed, sold or promoted by FTSE TMX Global Debt Capital Markets Inc., FTSE International Limited, TMX Group Inc. or their affiliates, or third party data suppliers and they make no representation, warranty or condition regarding the advisability of investing in the RBC ETFs.
