RCDC.TO vs. RCDB.NEO

Last updated Jun 4, 2026

RCDC.TO (RBC Canadian Dividend Covered Call ETF) and RCDB.NEO (RBC Canadian Discount Bond ETF) are both exchange-traded funds - RCDC.TO is a Derivative Income fund actively managed by RBC, while RCDB.NEO is a Short-Term Bond fund actively managed by RBC. Both are actively managed. Over the past 3 years, RCDC.TO returned 18.86%/yr vs 4.84%/yr for RCDB.NEO. At a 0.09 correlation, their price movements are largely independent. RCDC.TO charges 0.64%/yr vs 0.17%/yr for RCDB.NEO.

Performance

RCDC.TO vs. RCDB.NEO - Performance Comparison

The chart below illustrates the hypothetical performance of a CA$10,000 investment in RBC Canadian Dividend Covered Call ETF (RCDC.TO) and RBC Canadian Discount Bond ETF (RCDB.NEO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RCDC.TO achieves a 12.49% return, which is significantly higher than RCDB.NEO's 1.15% return.

RCDC.TO

• 1D: 0.08%
• 1M: 4.61%
• YTD: 12.49%
• 6M: 14.54%
• 1Y: 29.08%
• 3Y*: 18.86%
• 5Y*: —
• 10Y*: —

RCDB.NEO

• 1D: 0.00%
• 1M: 1.09%
• YTD: 1.15%
• 6M: 0.91%
• 1Y: 3.01%
• 3Y*: 4.84%
• 5Y*: 2.25%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

RCDC.TO vs. RCDB.NEO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
RCDC.TO RBC Canadian Dividend Covered Call ETF	12.49%	19.29%	17.27%	2.39%
RCDB.NEO RBC Canadian Discount Bond ETF	1.15%	3.75%	5.58%	4.49%

Correlation

The correlation between RCDC.TO and RCDB.NEO is 0.16, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.16
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (All Time) Calculated using the full available price history since Jan 17, 2023	0.09

Return for Risk

RCDC.TO vs. RCDB.NEO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RCDC.TO

RCDC.TO Risk / Return Rank: 93
RCDC.TO Sharpe Ratio Rank: 93
RCDC.TO Sortino Ratio Rank: 95
RCDC.TO Omega Ratio Rank: 94
RCDC.TO Calmar Ratio Rank: 89
RCDC.TO Martin Ratio Rank: 94

RCDB.NEO

RCDB.NEO Risk / Return Rank: 38
RCDB.NEO Sharpe Ratio Rank: 37
RCDB.NEO Sortino Ratio Rank: 36
RCDB.NEO Omega Ratio Rank: 36
RCDB.NEO Calmar Ratio Rank: 40
RCDB.NEO Martin Ratio Rank: 41

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RCDC.TO vs. RCDB.NEO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for RBC Canadian Dividend Covered Call ETF (RCDC.TO) and RBC Canadian Discount Bond ETF (RCDB.NEO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	RCDC.TO	RCDB.NEO	Difference
Sharpe ratio: Return per unit of total volatility	3.54	1.29	+2.25
Sortino ratio: Return per unit of downside risk	5.12	1.85	+3.27
Omega ratio: Gain probability vs. loss probability	1.67	1.24	+0.44
Calmar ratio: Return relative to maximum drawdown	5.38	1.91	+3.47
Martin ratio: Return relative to average drawdown	26.80	6.47	+20.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RCDC.TO vs. RCDB.NEO - Sharpe Ratio Comparison

The current RCDC.TO Sharpe Ratio is 3.54, which is higher than the RCDB.NEO Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of RCDC.TO and RCDB.NEO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RCDC.TO	RCDB.NEO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.54	1.29	+2.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.80	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.50	0.45	+1.05

Drawdowns

RCDC.TO vs. RCDB.NEO - Drawdown Comparison

The maximum RCDC.TO drawdown since its inception was -10.88%, which is greater than RCDB.NEO's maximum drawdown of -8.31%. Use the drawdown chart below to compare losses from any high point for RCDC.TO and RCDB.NEO.

Drawdown Indicators

	RCDC.TO	RCDB.NEO	Difference
Max Drawdown Largest peak-to-trough decline	-10.88%	-8.31%	-2.57%
Max Drawdown (1Y) Largest decline over 1 year	-5.43%	-1.59%	-3.84%
Max Drawdown (3Y) Largest decline over 3 years	-10.88%	-1.59%	-9.29%
Max Drawdown (5Y) Largest decline over 5 years	—	-6.90%	—
Current Drawdown Current decline from peak	-0.19%	-0.03%	-0.16%
Average Drawdown Average peak-to-trough decline	-1.87%	-1.41%	-0.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.09%	0.47%	+0.62%

Volatility

RCDC.TO vs. RCDB.NEO - Volatility Comparison

RBC Canadian Dividend Covered Call ETF (RCDC.TO) has a higher volatility of 2.49% compared to RBC Canadian Discount Bond ETF (RCDB.NEO) at 0.67%. This indicates that RCDC.TO's price experiences larger fluctuations and is considered to be riskier than RCDB.NEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RCDC.TO	RCDB.NEO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.49%	0.67%	+1.82%
Volatility (6M) Calculated over the trailing 6-month period	6.71%	1.84%	+4.87%
Volatility (1Y) Calculated over the trailing 1-year period	8.25%	2.35%	+5.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.15%	2.83%	+7.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.15%	5.48%	+4.67%

RCDC.TO vs. RCDB.NEO - Expense Ratio Comparison

RCDC.TO has a 0.64% expense ratio, which is higher than RCDB.NEO's 0.17% expense ratio.

Dividends

RCDC.TO vs. RCDB.NEO - Dividend Comparison

RCDC.TO's dividend yield for the trailing twelve months is around 6.33%, more than RCDB.NEO's 2.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
RCDB.NEO RBC Canadian Discount Bond ETF	2.11%	1.96%	1.58%	1.22%	1.16%	1.33%	1.68%	0.78%
RCDC.TO RBC Canadian Dividend Covered Call ETF	6.33%	6.38%	6.46%	6.49%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both RCDC.TO and RCDB.NEO in my portfolio?

RCDC.TO and RCDB.NEO have a correlation of 0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, RCDC.TO or RCDB.NEO?

On fees, RCDB.NEO is cheaper at 0.17% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, RCDC.TO or RCDB.NEO?

RCDB.NEO is cheaper with a 0.17% expense ratio, compared with 0.64% for RCDC.TO.

What is the main difference between RCDC.TO and RCDB.NEO?

RCDC.TO is categorized as Derivative Income, while RCDB.NEO is Short-Term Bond. Their fees differ too: 0.64% for RCDC.TO and 0.17% for RCDB.NEO.