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 ("BlackRock Canada").
What are discount bond ETFs?
RBC Discount Bond ETFs provide exposure to high quality, short- term government and corporate bonds, with an emphasis on discount bonds. These ETFs seek to deliver an attractive after-tax return that consists of both interest income and capital gains. This means they are an ideal option for investors seeking a tax-efficient, shorter-term solution for their non-registered accounts. RBC Discount Bond ETFs can also be a great complement to a fully diversified ‘core’ bond portfolio to shorten duration and increase tax efficiency.
Simplicity
Access a single ticket, cost efficient diversified portfolio of short-term Canadian or U.S. government and corporate bonds.
Tax-efficiency
Enjoy a more tax-efficient return in non-registered accounts when compared to bonds purchased at par.
Liquidity
Benefit from strong liquidity and ease of trading relative to many other fixed income solutions.
Active Management
Put the breadth and depth of experience of the RBC GAM Fixed Income Team to work for you.
Why invest now?
With short term interest rates at their highest point since the mid 2000s, the North American bond market now offers numerous bonds trading at relatively deep discounts to par. As a result, RBC Discount Bond ETFs are in a strong position to deliver attractive, tax-effective returns for investors.
| Portfolio characteristics |
RCDB |
RUDB* |
| Weighted average yield to maturity |
4.64% |
5.30% |
| Weighted average current yield |
1.67% |
1.80% |
| Pricing (relative to par $100) |
93.18 |
91.58 |
| Modified duration |
2.51 years |
2.56 years |
| Weighted average credit rating |
AA- |
A+ |
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How do we manage RBC Discount Bond ETFs for you?
A consistent rules-based approach
We apply a disciplined process to select shorter-term government and corporate bonds at a discount.
A focus on value – Price Awareness
We look for bonds trading below the weighted average price of a custom short-term bond universe.
A focus on quality
Invests in high-quality Canadian or U.S. government and corporate bonds and actively managed by the RBC GAM Fixed Income Team.
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Explore RBC Discount Bond ETFs
Explore RBC Discount Bond ETFs
Download the Fund profiles (Canada)
Download the Fund profiles (United States)
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How can we help?
RBC iShares offers an unparalleled breadth of ETF solutions, a commitment to exceptional service and top investment expertise located around the world.
Advisors: Contact your dedicated sales team and access portfolio resources – Login here.
Investors: Contact your financial advisor to discuss which investments may be right for you.