RBC iShares has launched four new fixed income ETFs on the Toronto Stock Exchange.

RBC iShares has expanded its sustainable fixed income ETF suite to include Canadian corporate bonds.
The new listings include two ESG-screened Canadian corporate bond ETFs and two non-ESG US aggregate bond ETFs.
Canadian corporate
The iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF (XSHG CN) and iShares ESG Advanced Canadian Corporate Bond Index ETF (XCBG CN) provide exposure to the Canadian dollar-denominated, investment-grade corporate bond market.
XSHG targets bonds with remaining maturities between one and five years, while XCBG invests across the yield curve.
The ETFs track Bloomberg MSCI ‘ESG Screened’ indices which remove issuers that are in violation of UN Global Compact principles as well as those with significant operations linked to adult entertainment, alcohol, gambling, tobacco, conventional weapons, controversial weapons, nuclear weapons, civilian firearms, nuclear power, for-profit prisons, predatory lending, palm oil, cannabis, fossil fuels, and genetically modified organisms.
Using insights from MSCI ESG Research, the remaining issuers are then assigned ESG scores based on the most relevant ESG factors by industry and risk exposure. The ESG scores are based on a seven-point scale between AAA and CCC, and issuers scoring below BBB (equivalent to average) are also eliminated from the selection pool.
The remaining issuers are weighted by market value while capping the weight of any individual firm at 10%.
Each ETF comes with a management fee of 0.15%.
Steven Leong, Head of iShares Product, BlackRock Canada, said: “Through the launch of these new ETFs, RBC iShares continues to deliver the broadest range of sustainable ETFs in Canada, to support portfolio construction among Canadian investors and meet the growing demand for sustainable strategies. With both low interest rates and sustainability top of mind among investors and advisors, these new ETFs provide additional tools to construct sustainable portfolios, offering exposure to ESG-oriented portfolios of Canadian corporate bonds.”
US aggregate
The iShares US Aggregate Bond Index ETF (XAGG.U CN) trades in US dollars, while the iShares US Aggregate Bond Index ETF (CAD-Hedged) (XAGH CN) offers Candian dollar-denominated currency-hedged exposure.
Both ETFs are linked to the Bloomberg US Aggregate Bond Index, a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related debt, corporate securities, agency MBS, ABS, and CMBS (agency and non-agency).
The index covers the entire yield curve, selecting bonds with more than one year remaining until final maturity.
Each ETF comes with a management fee of 0.18%.