Industry Updates

RBC and BlackRock create alliance to form Canada's most comprehensive ETF offering

George Geddes

a man writing on a paper

World's leading ETF provider BlackRock and Canada's leading asset manager Royal Bank of Canada have formed an alliance to develop the Canadian ETF marketplace.

The alliance being named RBC iShares will manage the combined $60bn solution suite of ETFs. This will be Canada's largest ETF offering, covering index, factor, quantitative and active strategies.

RBC iShares' suite will be comprised of 150 ETFs. BlackRock Canada is contributing majority of the ETFs, managing 106 index solutions. The remaining 44 ETFs being contributed by RBC, including index, smart beta and actively managed solutions.

Still remaining separate legal entities, RBC and BlackRock aim to offer a support and service model to assist both investors and advisors. Services will also be provided to third-party portfolio managers, advisors and institutions.

While no changes are being made to the name and tickers of the ETFs, some changes are being made to the structure and fees of some products, once approval has been confirmed. In some cases, the fees could possibly be reduced.

Damon Williams, CEO of RBC Global Asset Management. "Canadian investors deserve a level of choice, quality and cost competitiveness that is second to none - and that is what RBC iShares delivers. This exciting step forward in the ETF space complements our continued focus on expanding our industry-leading Canadian mutual fund business."


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