RBC Unveils S&P 500-Linked Buffer Notes with 200% Participation Rate

Royal Bank of Canada (RBC) has introduced its Capped Enhanced Return Dual Directional Buffer Notes linked to the S&P 500 Index, maturing on December 3, 2027. The notes offer a 200% participation rate in gains, with a maximum upside return of at least 11.20%, determined on October 30, 2026.

The buffer protection feature provides investors with a 10% buffer percentage, meaning losses only apply if the S&P 500 Index declines more than 10% from its initial value. If the index closes below its initial level but remains above the buffer value of 90%, investors receive a positive return equal to the absolute value of the negative underlier return, capped at 10%. However, if the index falls below the buffer value, investors will lose principal on a one-for-one basis beyond the buffer.

The notes do not offer periodic interest payments and have an initial estimated value between $939.00 and $989.00 per $1,000 principal amount. Investors are advised to carefully review the preliminary pricing supplement, product supplement, underlying supplement, prospectus supplement, and prospectus prior to investing due to various risk factors.