RBC iShares Expands Thematic ETF Suite With 5 New Mandates
These new ETF solutions provide distinct exposure to both essential and evolving sectors of the global economy
With over $103 billion in assets under management, RBC iShares is one of the largest ETF providers in Canada. Attaining such a size and stature requires ongoing product development and yearly enhancement of their ETF line-up. Year to date+, BlackRock has launched at least thirty-two new ETFs, with distinct investment themes. In this article we’ll look at those recently launched in September 2023, examining their individual investment objectives and how investors can utilize them.
iShares S&P/TSX Energy Transition Materials Index ETF | Ticker: XETM | Mgmt. Fee: 0.55%
As our global energy ecosystem transitions to carbon-neutral, the materials used to develop and sustain electrification are increasing in value. In launching this solution, RBC iShares has provided an investment solution that offers investors pure-play access to North American listed equities, providing access to a range of critical materials necessary for the global energy transition. The ETF will provide targeted access to companies engaged in the mining, exploration, or manufacturing of products using alumina, aluminum, bauxite, cobalt, copper, lithium, manganese, molybdenum, nickel, palladium, platinum, rare earth metals, silver, uranium, and zinc.
iShares S&P U.S. Financials Index ETF | Ticker: XUSF | Mgmt. Fee: 0.25%
While the current sentiment regarding US banks may be negative, it is important to remember that they do not represent the entirety of the US financial sector. In launching this ETF, RBC iShares is providing a comprehensive solution to the various sub-sectors that represent the US financial services landscape, including insurance; capital markets; mortgage real estate investment trusts (“REITs”); and consumer finance.
This ETF provides pure-play exposure to the US financial sector for interested investors, allowing them to take a strategic or tactical positioning in the industry through a single-ticket solution.
iShares NASDAQ 100 Index ETF | Ticker: XQQU/ XQQU.U | Mgmt. Fee: 0.35%
Regarded as one of the world’s preeminent large-cap growth indexes, the Nasdaq-100 reflects the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. This RBC iShares ETF will reflect the performance of the NASDAQ-100 Index, as such investors will have a broad and diversified exposure to many high-performing companies from popular sectors like technology, healthcare, consumer goods & services, and industrials.
This solution is worth considering for investors seeking a diversified portfolio of large-cap companies that are leaders in their respective industries.
iShares U.S. Aerospace & Defense Index ETF | Ticker: XAD | Mgmt. Fee: 0.39%
In the 2023 fiscal year, the US Department of Defense had $2.04 Trillion, or approximately 15.3 percent of the US federal budget, distributed among its 6 sub-components (i.e., Defense-wide, Army, Air Force, Navy-Marin Corps, Military Sales Program, and International Security Assistance) ^. While it is no secret that the US military-industrial complex accounts for a large portion of the US government's total budgetary resources, the companies that are beneficiaries of this ongoing spending tend to be rather large, slow growing, but remarkably stable due to the widespread use of long-term government contracts for most of their services.
In launching this ETF, RBC iShares is providing investors with the opportunity to gain exposure to a sector that is largely supported by the US government, which has historically shown little interest in curtailing their spending around defense spending and related activities.
iShares Semiconductor Index ETF | Ticker: XCHP | Mgmt. Fee: 0.35%
If artificial intelligence is the door to the future of technological innovation, semiconductors are the keys through which said door will be unlocked. Given the recent fervor around NVIDIA's dominant performance and the strategic actions taken by the US government to safeguard America’s semiconductor development, the semiconductor industry is growing in importance within the minds of many stakeholders.
In launching this ETF, RBC iShares is providing investors with comprehensive exposure to the U.S.-listed companies that design, manufacture, and distribute semiconductors; allowing them to access all the key players in an industry that is essential to the technological future.
* Source: BlackRock, RBC GAM. As of December 2022. RBC iShares has the most ETFs across each major asset class, with most solutions available in each asset class.
+As of September 12th, 2023
^Source: Trackinsight. Data as of September 27, 2023.
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.
