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Welcome to the new RBC iShares digital experience.

Find all things ETFs here: investment strategies, products, insights and more.

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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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Characteristics as of April 30, 2024
* Also available in $US and CAD hedged (RUDB.u and RDBH)

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.

Discount
Bond

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Explore RBC Discount Bond ETFs

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Explore RBC Discount Bond ETFs

Download the Fund profiles (Canada) Download the Fund profiles (United States)
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Additional resources

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.

Disclosure

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").

Commissions, trailing commissions, management fees and expenses all may be associated with investing in exchange-traded funds (ETFs). Please read the relevant prospectus or ETF Facts document before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

The information and opinions herein are provided for informational purposes only and should not be relied upon as the basis for your investment decisions.

Publication date: December 12, 2023