RBC Launches Accelerated Return Notes Linked to Invesco S&P 500 Equal Weight ETF
Royal Bank of Canada has announced accelerated return notes linked to the Invesco S&P 500 Equal Weight ETF (RSP), a popular passive investment product.
The notes, which have an approximately 14-month maturity, offer investors triple the positive percentage change in RSP's value, subject to a capped return. The participation rate is set at 300%, with a capped value range of $10.975 to $11.375 per unit.
The maximum gain for investors would be between 9.75% and 13.75% above principal, depending on the pricing date. On the downside, losses are passed through on a one-to-one basis, with full principal risk involved.
Royal Bank of Canada has highlighted multiple risks associated with these notes, including exposure to its own credit risk and potential conflicts of interest from its hedging and trading activities. Additionally, the U.S. federal income tax treatment remains uncertain.