RBC to price best profile notes linked to best-performing ETF basket

By Angela McDaniels

Tacoma, Wash., Aug. 15 – Royal Bank of Canada plans to price 0% best profile notes due Aug. 31, 2021 linked to the best-performing basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

Basket A consists of the SPDR S&P 500 ETF trust with a 30% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight, the SPDR Gold trust with a 20% weight, the iShares iBoxx $ High Yield Corporate Bond ETF with a 10% weight and the iShares iBoxx $ Investment Grade Corporate Bond ETF with a 10% weight.

Basket B consists of the gold trust with a 25% weight; the S&P 500 trust, the EAFE ETF and the high-yield ETF with a 20% weight each and the investment-grade ETF with a 15% weight.

Basket C consists of the gold trust and the investment-grade ETF with a 30% weight each, the high-yield ETF with a 20% weight and the S&P 500 trust and the EAFE ETF with a 10% weight each.

The payout at maturity will be par plus the return of the best-performing basket. The notes are not principal protected, so if the best-performing basket has a negative return, the payout will be less than par.

RBC Capital Markets LLC is the underwriter.

The notes will price Aug. 26.

The Cusip number is 78012KSR9.

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