The Royal Bank of Canada (RBC) has launched a five-year note in the US market linked to the RBC Global Tactical Equity Total Return Index.

The choice of underlying asset, a proprietary index developed by RBC, is of interest. The note itself is delivered as a delta one ie the investor gets linear exposure to the index performance itself with no capital protection. Economically it is similar to investing in an ETF which is by design an instrument that accesses indices, whether market capitalisation indices or more complex algorithmic strategies. The RBC index is itself comprised of four sub-indices each with the tactical methodology