New Leveraged ETFs Launched
RBC iShares Alliance Introduces Three New Leveraged ETF Series for Enhanced Investment Returns
The RBC iShares alliance launched three new leveraged ETFs on June 9, 2026, expanding its alternative investment lineup for Canadian retail investors. The funds — RNVL, RCDL, and RUDL — began trading on Cboe Canada the same day, according to Newswire.
Each fund uses roughly 25% leverage on top of its net asset value to "enhance" returns from proven dividend and value strategies. Stephen Hoffman, Managing Director of ETFs at RBC GAM, said the launch is designed to make "sophisticated investment strategies accessible" to everyday investors and advisors facing volatile markets.
Three New Funds With a Modest Leverage Twist
The three new ETF Series each target a different slice of North American equities. RNVL tracks North American value stocks and carries a 1.00% management fee. RCDL focuses on Canadian dividend leaders and charges 0.65%. RUDL targets U.S. dividend leaders, also at 0.65%, according to Yahoo Finance.
All three funds borrow cash equal to about 25% of their net asset value — meaning a $100 investment controls roughly $125 in assets. This is far below the 300% leverage ceiling that Canadian regulators allow under the "Alternative Mutual Fund" rules introduced in 2019. RBC chose a conservative approach deliberately, pitching the funds as "enhanced" rather than aggressive.
How Canada's 2019 Rule Change Made This Possible
Before 2019, Canadian retail investors could not access funds that used leverage or short-selling. That changed when amendments to National Instrument 81-102 came into effect on January 3, 2019, creating the "Liquid Alternative" fund category. The rule let retail funds use up to 300% aggregate leverage for the first time.
RBC iShares — formed just days later, on January 8, 2019, as a partnership between RBC Global Asset Management and BlackRock Canada — became Canada's largest ETF provider. The alliance now manages over 240 ETFs with more than $240 billion in total assets, according to Market Screener.
Bulls and Bears Disagree on 25% Leverage Risk
Supporters argue these funds give ordinary investors a "one-click" path to strategies once reserved for hedge funds and wealthy clients. The underlying RBC North American Value Fund already manages over $10 billion without leverage, suggesting the base strategy is well-tested. Cboe Canada's Erik Sloane called RBC iShares a leader in advancing "the Canadian ETF landscape."
Critics are less enthusiastic. Some financial educators warn that even modest leverage increases the size of losses during market downturns. In choppy, flat markets, "leverage decay" — where daily borrowing costs eat into returns — can quietly erode capital over time. Consumer advocates stress that easy daily liquidity does not equal long-term safety, according to Yahoo Finance.
Cboe Canada Cements Its Role as Canada's Alt-ETF Hub
RBC chose to list all three funds on Cboe Canada — formerly the NEO Exchange — rather than the Toronto Stock Exchange. This continues a trend. RBC iShares first used Cboe Canada for a bond ETF launch in March 2024, and returned for another multi-ETF launch in April 2026, according to Market Screener.
Industry watchers say the choice signals Cboe Canada's growing reputation as the go-to venue for complex and alternative fund structures. As Canada's ETF market matures, the competition for listings — and for investor assets — is heating up fast.
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