New: Actively managed CLO exposure for Canadian investors with RCLO
The RBC iShares alliance is expanding its lineup with RCLO, bringing access to collateralized loan obligations (CLOs) to Canadian investors. The Fund aims to deliver higher yields with improved credit quality by investing primarily in AAA-rated CLOs.
The RBC iShares alliance is expanding its fixed income ETF lineup with the launch of RBC AAA CLO (CAD Hedged) ETF (Ticker: RCLO). This actively managed ETF gives Canadians investors access to the CLO market. CLOs offer a unique opportunity for investors seeking higher yields and portfolio diversification, without sacrificing quality. Through RCLO, individual investors can access the benefits of CLOs in a more liquid and transparent way, while maintaining a high degree of credit quality.
What makes RCLO unique?
RCLO is different because of the experienced investment team managing the ETF. RCLO leverages the expertise of RBC GAM’s BlueBay Fixed Income Global CLO and Securitized team. Formed in 2018, the team manages ~U.S.$9.1B¹ in securitized credit including ~ U.S.$4.2B in CLOs². The team adds value through CLO manager analysis, collateral analysis, security selection and sound risk management.
Why should investors consider RCLO?
RCLO provides investors exposure to a unique asset class that further diversifies fixed income exposures while providing high quality income. Here are four reasons to consider this ETF:
- Safety: The majority of the portfolio invests in AAA-rated CLO debt tranches. These tranches are seen as having the lowest risk of default.
- Easy access: RCLO is an efficient way to gain access to this asset class with a low minimum investment requirement.
- Liquidity: As an ETF, RCLO trades like a stock and can be bought and sold throughout the trading day at market prices. This can be a significant advantage over investing directly in CLOs, which can be less liquid and complex to transact.
- U.S. and international exposure with currency hedging: RCLO invests in debt tranches of CLOs from issuers located in the United States. It may also invest in CLOs from issuers located in Europe. As part of its investment strategy, the ETF is currency hedged to minimize exposure to changes of foreign currencies relative to the Canadian dollar.
About RBC iShares alliance:
In 2019, RBC Global Asset Management and BlackRock Canada created the RBC iShares alliance. RBC iShares ETFs are comprised of RBC ETFs and ETF Series of RBC Funds managed by RBC Global Asset Management Inc. and iShares ETFs managed by BlackRock Asset Management Canada Limited ("BlackRock Canada”)
RBC iShares provides the largest full-service ETF platform in Canada.³
Our combined expertise, insights and broad product offering drive meaningful progress for our clients in today’s investing world.
About RBC Global Asset Management
RBC Global Asset Management is the investment arm of Royal Bank of Canada, managing approximately $693 billion⁴ in assets. With offices across Canada, the U.S., Europe, and Asia, and over 1,600 employees⁴, RBC GAM delivers portfolio management services to institutions, advisors, and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @BlackRockCA
About iShares ETFs
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds (ETFs) and US$4.2 trillion in assets under management as of December 31, 2024, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock. iShares® ETFs are managed by BlackRock Asset Management Canada Limited.
Learn more at rbcishares.com
¹ Source: RBC Global Asset Management, as of March 31, 2025.
² Source: RBC Global Asset Management, as of March 31, 2025.
³ $160+ B in assets, as at, March 31, 2025.
⁴ Source: RBC Global Asset Management, as of April 30, 2025.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
Please consult your advisor and read the prospectus or Fund Facts document before investing. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. RBC Funds, BlueBay Funds and PH&N Funds are offered by RBC Global Asset Management Inc. and distributed through authorized dealers in Canada.
