The new fund seeks to follow the performance of 21 of the largest dividend-paying US bank stocks
RBC Global Asset Management has launched the RBC US Banks Yield Index ETF (RUBY) on the Toronto Stock Exchange. The fund is based on the Solactive US Banks Yield Index, which follows the performance of 21 of the largest US dividend-paying bank stocks as measured by market capitalization and weighted by their annual dividend yields.
“Through our ongoing discussions with investors and advisors, there has been notable interest in further exposure to the U.S banking sector," said Mark Neill, head of RBC ETFs. "This is driven by a desire for more diversification in the financial sector and by recent trends in the US, such as strong growth signals and changing monetary policy that has created a positive long-term outlook for US banks.”
RUBY is also available in USD (RUBY.u) and CAD-hedged (RUBH) options to let investors select their preferred currency exposure; the CAD-hedged series follows the Solactive US Banks Yield (CAD Hedged) Index.
All three options come with a management fee of 0.29%.
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