2016 interim report - gamfunds.rbcgam.com/.../rbcetfs-interim-report-2016.pdf · 2016 interim...

2016 Interim Report

RBC ETFs

TABLE OF CONTENTS

Management Report of Fund Performance

RBC 1-5 Year Laddered Corporate Bond ETF 2RBC 1-5 Year Laddered Canadian Bond ETF 7RBC Target 2016 Corporate Bond Index ETF 11RBC Target 2017 Corporate Bond Index ETF 16RBC Target 2018 Corporate Bond Index ETF 21RBC Target 2019 Corporate Bond Index ETF 26RBC Target 2020 Corporate Bond Index ETF 31RBC Target 2021 Corporate Bond Index ETF 36RBC Quant Canadian Dividend Leaders ETF 41RBC Quant U.S. Dividend Leaders ETF 46RBC Quant U.S. Dividend Leaders (CAD Hedged) ETF 50RBC Quant European Dividend Leaders ETF 55RBC Quant European Dividend Leaders (CAD Hedged) ETF 59RBC Quant EAFE Dividend Leaders ETF 64RBC Quant EAFE Dividend Leaders (CAD Hedged) ETF 68RBC Quant Emerging Markets Dividend Leaders ETF 73RBC Strategic Global Dividend Leaders ETF 77RBC Quant Canadian Equity Leaders ETF 81RBC Quant U.S. Equity Leaders ETF 85RBC Quant U.S. Equity Leaders (CAD Hedged) ETF 89RBC Quant EAFE Equity Leaders ETF 93RBC Quant EAFE Equity Leaders (CAD Hedged) ETF 97RBC Quant Emerging Markets Equity Leaders ETF 102RBC Strategic Global Equity Leaders ETF 106

Financial Statements

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING 110

RBC 1-5 Year Laddered Corporate Bond ETF 111RBC 1-5 Year Laddered Canadian Bond ETF 117RBC Target 2016 Corporate Bond Index ETF 123RBC Target 2017 Corporate Bond Index ETF 129RBC Target 2018 Corporate Bond Index ETF 135RBC Target 2019 Corporate Bond Index ETF 141RBC Target 2020 Corporate Bond Index ETF 147RBC Target 2021 Corporate Bond Index ETF 153RBC Quant Canadian Dividend Leaders ETF 159RBC Quant U.S. Dividend Leaders ETF 165RBC Quant U.S. Dividend Leaders (CAD Hedged) ETF 173RBC Quant European Dividend Leaders ETF 179RBC Quant European Dividend Leaders (CAD Hedged) ETF 185RBC Quant EAFE Dividend Leaders ETF 191RBC Quant EAFE Dividend Leaders (CAD Hedged) ETF 198RBC Quant Emerging Markets Dividend Leaders ETF 204RBC Strategic Global Dividend Leaders ETF 211RBC Quant Canadian Equity Leaders ETF 217RBC Quant U.S. Equity Leaders ETF 224RBC Quant U.S. Equity Leaders (CAD Hedged) ETF 232RBC Quant EAFE Equity Leaders ETF 238RBC Quant EAFE Equity Leaders (CAD Hedged) ETF 247RBC Quant Emerging Markets Equity Leaders ETF 253RBC Strategic Global Equity Leaders ETF 261

GENERIC NOTES TO FINANCIAL STATEMENTS 267

PLEASE CALL US Inside Back Cover

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2016 INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE

RBC ETF

RBC 1-5 YEAR LADDERED CORPORATE BOND ETF

June 30, 2016

Portfolio Manager RBC Global Asset Management Inc. (“RBC GAM”)

This interim management report of fund performance (“MRFP”) contains financial highlights but does not contain either the complete interim financial statements or the complete annual financial statements of the ETF. You can get a copy of the annual financial statements at your request, and at no cost, by calling 1-855-RBC-ETFS (722-3837), by writing to us at RBC Global Asset Management Inc., P.O. Box 7500, Station A, Toronto, Ontario M5W 1P9, or by visiting our website at www.rbcgam.com/etf/reports or SEDAR at www.sedar.com. Security holders may also contact us using one of these methods to request a copy of the ETF’s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure.

The Board of Directors of RBC Global Asset Management Inc. approved this interim management report of fund performance on August 10, 2016.

A Note on Forward-looking Statements

This report may contain forward-looking statements about the ETF, its future performance, strategies or prospects, and possible future ETF action. The words “may,” “could,” “should,” “would,” “suspect,” “outlook,” “believe,” “plan,” “anticipate,” “estimate,” “expect,” “intend,” “forecast,” “objective” and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the ETF and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made in relation to the ETF. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events.

The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.

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MANAGEMENT DISCUSSION OF FUND PERFORMANCE

Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure to the performance of a diversified portfolio of Canadian corporate bonds, divided (“laddered”) into five groupings with staggered maturities from one to five years, which will provide regular income while preserving capital.

The ETF will achieve exposure to Canadian corporate bonds primarily by investing in an equal-weighted portfolio of five RBC Target Maturity Corporate Bond ETFs with remaining terms to maturity of one to five years. At the end of each year, the nearest term RBC Target Maturity Corporate Bond ETF will be sold and proceeds invested into a longer-dated RBC Target Maturity Corporate Bond ETF to maintain the one- to five-year ladder. The portfolio holdings will be rebalanced initially on a semi-annual basis. The frequency of the rebalancing may change without notice.

Results of OperationsThe ETF’s net asset value was $169 million as of June 30, 2016.

Over the past six months, the ETF’s units gained 1.7%. The ETF’s return is after the deduction of fees and expenses. See the Financial Highlights section for the management expense ratios and the Past Performance section for the returns of any other series, which may vary because of differences in management fees and expenses.

Declines in riskier assets, such as corporate bonds, extended into early 2016. Prices for such assets bottomed in mid-February, when a recovery began in non-government bonds, equities and commodities. Government-bond yields in some countries fell to new lows, as central banks in Europe and Japan expanded bond-buying programs aimed at stimulating growth. The Bank of Canada (the “BOC”) refrained from lowering its benchmark interest rate on expectations of new spending by the federal government and a rally in oil prices. Efforts to weaken the U.S. dollar, softer U.S. economic statistics and concerns about the U.K.’s vote in June to leave the EU resulted in the U.S. Federal Reserve (the “Fed”) appearing to put off rate increases until at least later this year.

Corporate bonds with between one and five years left until maturity outperformed government bonds during the first half of the year, as yields on corporate bonds fell more than yields on government bonds. The overall fall in long-term yields and rise in bond prices came amid asset purchases by the European and Japanese central banks, and the realization that the Fed was less likely to immediately resume interest-rate hikes forced down yields on bonds with maturities exceeding three years.

Recent DevelopmentsThe deteriorating health of corporate balance sheets and higher default rates remain a concern for the portfolio manager, considering that extraordinary accommodative monetary policies have done little to bolster global economic growth. The BOC will likely keep interest rates unchanged for the rest of 2016, as government spending is expected to help offset weakness in the economy. Long term, negative government bond yields in Germany and Japan – where investors in some cases actually pay to hold safe-haven government bonds – and the U.K.’s vote could have negative consequences. In the view of the portfolio manager, returns will remain volatile and uncertain, and bond yields will likely remain lower for longer.

Related-Party TransactionsManager, Trustee and Portfolio ManagerRBC GAM is an indirect, wholly owned subsidiary of Royal Bank of Canada (“Royal Bank”) and is the manager, trustee and portfolio manager of the ETF. RBC GAM is responsible for the ETF’s day-to-day operations, holds title to the ETF’s property on behalf of its unitholders, and provides investment advice and portfolio management services to the ETF. RBC GAM is paid a management fee by the ETF as compensation for its services.

Affiliates of RBC GAM that provide services to the ETF in the course of their normal businesses are discussed below.

Custodian and Valuation AgentRBC Investor Services Trust (“RBC IS”) is the custodian and valuation agent and holds the assets of the ETF and provides administrative services to the ETF.

Designated BrokerRBC GAM has entered into an agreement with RBC Dominion Securities Inc., an affiliate of RBC GAM, to act as designated broker and underwriter for distribution of units of the ETF, on terms and conditions that are comparable to arm’s length agreements in the ETF industry. The material terms and conditions of the agreement have been disclosed in the ETF’s Prospectus.

BrokerageThe ETF has established standard brokerage agreements at market rates with related-party dealers. These related-party commissions were $1,000 (2015 – $16,000) or 100% (2015 – 100%) of the total transaction costs paid for this ETF.


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Other Related-Party TransactionsPursuant to applicable securities legislation, the ETF relied on the standing instructions from the Independent Review Committee with respect to one or more of the following transactions:

Related-Party Trading Activities(a) trades in securities of Royal Bank;

(b) investments in the securities of issuers for which a related-party dealer acted as an underwriter during the distribution of such securities and the 60-day period following the conclusion of such distribution of the underwritten securities to the public;

(c) purchases of debt securities from or sales of debt securities to a related-party dealer, where it acted as principal.

The applicable standing instructions require that Related-Party Trading Activities be conducted in accordance with RBC GAM policy and that RBC GAM advise the Independent Review Committee of a material breach of any standing instruction. RBC GAM policy requires that an investment decision in respect of Related-Party Trading Activities (i) is made free from any influence of Royal Bank or its associates or affiliates and without taking into account any consideration relevant to Royal Bank or its affiliates or associates, (ii) represents the business judgment of the portfolio manager, uninfluenced by considerations other than the best interests of the ETF, (iii) is in compliance with RBC GAM policies and procedures, and (iv) achieves a fair and reasonable result for the ETF.

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FINANCIAL HIGHLIGHTS The following tables show selected key financial information about the ETF and are intended to help you understand the ETF’s financial performance for the past six months (noted by June 30, 2016), and for the past five years or for the periods since inception. This information is derived from the ETF’s unaudited interim financial statements and audited annual financial statements. For financial years beginning on or after January 1, 2014, financial highlight information is derived from financial statements prepared in compliance with International Financial Reporting Standards (“IFRS”). For financial years prior to January 1, 2014, financial highlight information is derived from financial statements prepared in accordance with Canadian generally accepted accounting principles (“GAAP”). “Net Assets,” for the periods prior to 2014, are calculated in accordance with GAAP, and “Net Asset Value” is derived from the valuation method disclosed in the RBC Funds Annual Information Form and is used for transactional purposes (see Ratios and Supplemental Data). All other calculations for the purposes of this MRFP are made using Net Asset Value. There is no significant difference between “Net Assets” and “Net Asset Value” under IFRS.

Change in Net Assets Per Unit ($)

Annual Distributions2

Increase (Decrease) from Operations1 From Total Realized Unrealized Income From Net Assets For the Year/ Net Assets Revenue Total Gains Gains (Excluding From Capital Return End of Period Ended Beginning of Year/Period (Loss) Expenses (Losses) (Losses) Total Dividends) Dividends Gains of Capital Total Year/Period

RBC 1-5 Year ETFJune 30, 2016 19.73 0.33 – (0.01) 0.01 0.33 (0.33) – – – (0.33) 19.73 Dec. 31, 2015 20.00 0.70 (0.01) (0.13) (0.23) 0.33 (0.70) – – – (0.70) 19.73 Dec. 31, 20143 20.00† 0.73 – – (0.19) 0.54 (0.65) – – – (0.65) 20.00

1 Net assets and distributions are based on the actual number of units outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of units outstanding over the financial period. This table is not intended to be a reconciliation of beginning to ending net assets per unit.

2 Distributions are either paid in cash, reinvested in additional units of the ETF, or both.3 From January 15, 2014.† Initial offering net asset value per unit.

Ratios and Supplemental Data

Net Asset Value Number of Units Management MER Before Trading Portfolio Net Asset Value Closing As at ($000s) Outstanding (000s) Expense Ratio (%)1 Absorption (%)1 Expense Ratio (%)2 Turnover Rate (%)3 Per Unit ($) Market Price ($)

RBC 1-5 Year ETFJune 30, 2016 168 668 8 550 0.28 0.28 – 2.94 19.73 19.79 Dec. 31, 2015 148 923 7 550 0.28 0.28 0.04 42.39 19.73 19.68Dec. 31, 20144 72 016 3 600 0.28 0.28 – 0.64 20.00 20.00

1 The management expense ratio (“MER”) is based on expenses for the stated period, excluding commissions and other portfolio transaction costs, and is expressed as an annualized percentage of the daily average net asset value during the period. RBC GAM may, at its discretion and without notice to unitholders, waive or absorb certain operating expenses. MER includes the waiver or absorption by RBC GAM of certain operating expenses, while the MER before absorption shows the MER prior to operating expenses being waived or absorbed by RBC GAM.

2 The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period. The trading expense ratio is not applicable to fixed-income transactions.

3 The ETF’s portfolio turnover rate gives an indication of the level of activity employed by the portfolio manager. A portfolio turnover rate of 100% is equivalent to the ETF buying and selling all of the securities in its portfolio once in the course of the year. The higher the ETF’s portfolio turnover rate in a year, the greater the trading costs payable by the ETF in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of the ETF.

4 From January 15, 2014.

Management Fees RBC GAM is the manager, trustee and portfolio manager of the ETF. A management fee is not charged directly to the ETF as this ETF invests in the units of other RBC ETFs. It pays management fees indirectly because the ETFs in which it invests pay management fees.


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SUMMARY OF INVESTMENT PORTFOLIO(after consideration of derivative products, if any)As at June 30, 2016

Investment Mix % of Net Asset Value

Corporate Bonds Financials 65.7 Communication 11.2 Infrastructure 8.9 Energy 6.8 Industrials 4.8 Real Estate 2.6

Top 25 Holdings* % of Net Asset Value

RBC Target 2018 Corporate Bond Index ETF 20.0 RBC Target 2021 Corporate Bond Index ETF 20.0 RBC Target 2020 Corporate Bond Index ETF 20.0 RBC Target 2019 Corporate Bond Index ETF 20.0 RBC Target 2017 Corporate Bond Index ETF 20.0 Total 100.0

* The ETF holds fewer than 25 holdings.

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the ETF and a quarterly update is available at www.rbcgam.com/etfs.

The Simplified Prospectus and other information about the underlying funds are available on SEDAR website at www.sedar.com.


PAST PERFORMANCEThe performance information shown assumes that all distributions made by the ETF in the periods shown were reinvested in additional units of the ETF and would be lower if distributions were not reinvested. The performance information does not take into account sales, redemption, distribution, optional charges or income taxes payable that would have reduced returns or performance. Past performance does not necessarily indicate how the ETF may perform in the future. A fund with more than 10 years of performance history is only permitted to disclose the past 10 years.

Year-by-Year Returns (%) The bar chart indicates the ETF’s performance for each of the years shown, and illustrates how the ETF’s performance has changed from year to year. The bar chart shows, in percentage terms, how much an investment made on the first day of each financial year would have grown or decreased by the end of the financial year or interim period.

The ETF’s units have been available for sale to unitholders since January 15, 2014.

Inception dates are not provided for Funds that have been in existence for more than 10 years.

For the 12-month periods ended December 31 and the six-month period ended June 30, 2016.

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RBC ETF

RBC 1-5 YEAR LADDERED CANADIAN BOND ETF

June 30, 2016








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Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure primarily to the performance of a diversified portfolio of Canadian corporate and government bonds, divided (“laddered”) into five groupings with staggered maturities from one to five years, which will provide regular income while preserving capital.

The ETF will achieve exposure to Canadian corporate and government bonds primarily by investing in a portfolio of five equally weighted sub-portfolios, each of which is targeted to provide at least 30% exposure to government bonds and no more than 70% exposure to corporate bonds. The portfolios may deviate at times from their targeted weights due to market fluctuations between rebalance periods. The government bond exposure will be obtained by direct investment in one or more government bonds. The decision to invest in each government bond is based on RBC GAM’s assessment of each bond’s term to maturity, credit quality, yield to maturity and an overall emphasis on issuer diversification. The corporate bond exposure will be obtained primarily by investing in an appropriate RBC Target Maturity Corporate Bond ETF. Each sub-portfolio will have remaining terms to maturity ranging from one to five years. At the end of each year, the nearest term sub-portfolio will be sold and proceeds rolled into a new five-year sub-portfolio in order to maintain the one to five year ladder. The portfolio holdings will be rebalanced on a quarterly basis. The frequency of the rebalancing may change without notice.

Results of OperationsThe ETF was launched on January 25, 2016, and its net asset value was $45 million as of June 30, 2016. Investment performance is not provided for an ETF that has been available for less than one year.

Recent DevelopmentsThe deteriorating health of corporate balance sheets and higher default rates remain a concern for the portfolio manager, considering that extraordinary accommodative monetary policies have done little to bolster global economic growth. The Bank of Canada will likely keep interest rates unchanged for the rest of 2016, as government spending is expected to help offset weakness in the economy. Long term, negative government-bond yields in Germany and Japan – where investors in some cases actually pay to hold safe-haven government bonds – and the U.K.’s vote to leave the EU could have negative consequences. In the view of the portfolio manager, returns will remain volatile and uncertain, and bond yields will likely remain lower for longer.











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RBC 1-5 Year Can. ETFJune 30, 20163 20.00† 0.32 (0.01) – 0.06 0.37 (0.27) – – – (0.27) 19.94





RBC 1-5 Year Can. ETFJune 30, 20164 44 864 2 250 0.25 0.25 0.33 0.44 19.94 19.99





Management Fees RBC GAM is the manager, trustee and portfolio manager of the ETF. A management fee is charged indirectly and directly to the ETF: indirectly as this ETF invests in the units of other RBC ETFs and the other RBC ETFs pay management fees; and directly for other portfolio manager activities. The total management fee will not exceed 0.22%, before GST/HST, of the daily net asset value of the ETF.

PAST PERFORMANCEInvestment performance in respect of a fund that has been available for less than one year is not provided. The ETF was launched January 2016.


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Corporate Bonds Financials 45.7 Communication 7.7 Infrastructure 6.1 Energy 4.6 Industrials 3.3 Real Estate 1.7Federal and Provincial Bonds 29.9 Other Net Assets 1.0


RBC Target 2021 Corporate Bond Index ETF 14.0 RBC Target 2020 Corporate Bond Index ETF 14.0 RBC Target 2018 Corporate Bond Index ETF 14.0 RBC Target 2019 Corporate Bond Index ETF 14.0 RBC Target 2017 Corporate Bond Index ETF 14.0 Province of Ontario Canada 4.00% Jun 02, 2021 6.0 Government of Canada 1.50% Sep 01, 2017 6.0 Canada Housing Trust No 1 2.05% Jun 15, 2018 6.0 Province of Ontario Canada 4.20% Jun 02, 2020 3.0 Province of Quebec Canada 4.50% Dec 01, 2020 3.0 Province of Quebec Canada 4.50% Dec 01, 2019 2.9 Province of British Columbia 4.10% Dec 18, 2019 2.9 Cash and Cash Equivalents 0.2 Total 100.0





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NOTICE TO UNITHOLDERS OF RBC TARGET 2016 CORPORATE BOND INDEX ETF (TSX: RQD)

You are receiving this notice because you hold units of the RBC Target 2016 Corporate Bond Index ETF. On November 18, 2016 (“maturity date”), the RBC Target 2016 Corporate Bond Index ETF will terminate.

Upon termination, unitholders will receive a maturity distribution in the amount of the net asset value of the RBC Target 2016 Corporate Bond Index ETF units held in the account on the maturity date. Payment of the maturity distribution is expected to be deposited into unitholders’ investment accounts on the maturity date.

Why is the RBC Target 2016 Corporate Bond Index ETF maturing?Unlike traditional ETFs, which do not have a fixed termination date, target maturity ETFs are specifically set up to mature on a specified termination date that is established when the ETF is launched. When the ETF reaches its maturity date, the ETF’s net assets are returned to the unitholders.

When will the RBC Target 2016 Corporate Bond Index ETF cease trading? The last day of trading of RQD on the Toronto Stock Exchange is expected to be November 18, 2016 and unitholders at the end of this trading day will become unitholders of record for the purpose of receiving the maturity distribution.

What are the tax implications?There are no tax implications relating to the termination of the RBC Target 2016 Corporate Bond Index ETF if you are holding units in a registered account.

Termination of the RBC Target 2016 Corporate Bond Index ETF may result in a taxable gain or loss, depending on your individual situation, for units held in a non-registered account on the maturity date. Please read the prospectus of the RBC Target 2016 Corporate Bond Index ETF for additional information on the taxation of unitholders.

What actions do you need to take now?No action needs to be taken by investors.

For more informationThank you for choosing RBC ETFs to help you meet your investment goals. If you have further questions, please contact your financial advisor, or call us at 1-855-RBC-ETFS (722-3837).

RBC TARGET 2016 CORPORATE BOND INDEX ETF

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RBC ETF


June 30, 2016








Notice to Unitholders:

RBC Target 2016 Corporate Bond Index ETF is maturing in November 2016. Important details enclosed.

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Investment Objective and StrategiesThe ETF seeks to provide income for a limited period of time ending on its termination date by replicating, to the extent possible, the investment results that correspond generally to the performance, before fees and expenses, of the FTSE TMX Canada 2016 Maturity Corporate Bond Index*. The FTSE TMX Canada 2016 Maturity Corporate Bond Index is designed to represent the performance of a held-to-maturity portfolio consisting of, primarily, Canadian dollar-denominated investment grade corporate bonds with effective maturities in 2016.

The ETF intends to invest at least 90% of its assets in and hold the securities that comprise the FTSE TMX Canada 2016 Maturity Corporate Bond Index and/or securities that have economic characteristics that are substantially similar to those that comprise the index.



The ETF has entered its maturity year. Proceeds from maturing bonds will be reinvested in Government of Canada T-bills.

Recent DevelopmentsThe Bank of Canada refrained from lowering its benchmark interest rate over the first half of the year and is unlikely to move on rates in 2016 as the federal government looks to increase infrastructure spending to offset economic weakness. As a result, in the portfolio manager’s view, rates on bonds with less than one year until maturity should remain low and stable.











* “FTSE TMX Canada 2016 Maturity Corporate Bond Index” is a trademark of FTSE TMX Debt Capital Markets Inc. (“FTDCM”). “TMX” is a trademark of TSX Inc. (“TSX”) and is used under licence. “FTSE” is a trademark of the London Stock Exchange Group companies (the “Exchange”) and is used by FTDCM under licence. The “FTSE TMX Canada 2016 Maturity Corporate Bond Index” trademark has been licensed for use for certain purposes to RBC GAM. The RBC ETFs are not sponsored, endorsed, sold or promoted by FTDCM, FTSE International Limited, the Exchange or TSX (together, the “Licensor Parties”). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the index and/or the figure at which the said index stands at any particular time on any particular day or otherwise. The index is compiled and calculated by FTDCM and all copyright in the index values and constituent lists vests in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person for any error in the index and the Licensor Parties shall not be under any obligation to advise any person of any error therein.

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RBC 2016 ETFJune 30, 2016 18.97 0.26 (0.03) (0.76) 0.61 0.08 (0.21) – – – (0.21) 18.84 Dec. 31, 2015 19.40 0.78 (0.05) (0.30) (0.13) 0.30 (0.74) – – – (0.74) 18.97 Dec. 31, 2014 19.71 0.78 (0.05) (0.10) (0.25) 0.38 (0.71) – – – (0.71) 19.40 Dec. 31, 2013 19.91 0.81 (0.07) (0.02) (0.27) 0.45 (0.73) – – – (0.73) 19.68 Dec. 31, 2012 19.81 0.82 (0.07) – 0.04 0.79 (0.74) – – – (0.74) 19.91Dec. 31, 20113 20.00† 0.26 (0.02) – (0.20) 0.04 (0.13) – – (0.07) (0.20) 19.81


2 Distributions are either paid in cash, reinvested in additional units of the ETF, or both.3 From September 15, 2011.† Initial offering net asset value per unit.



RBC 2016 ETFJune 30, 2016 42 386 2 250 0.27 0.27 – – 18.84 18.81Dec. 31, 2015 60 695 3 200 0.27 0.27 – 19.43 18.97 18.98Dec. 31, 2014 80 514 4 150 0.28 0.28 – 23.52 19.40 19.35Dec. 31, 2013 51 245 2 600 0.33 0.33 – 7.49 19.71 19.70 Dec. 31, 2012 32 511 1 630 0.33 0.33 – 10.97 19.95 19.85Dec. 31, 20114 8 147 410 0.35 0.41 – 4.60 19.86 19.88




4 From September 15, 2011.


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FINANCIAL HIGHLIGHTS (cont.)

Management Fees RBC GAM is the manager, trustee and portfolio manager of the ETF. The management fee of the ETF is calculated at the annual percentage, before GST/HST, of the daily net asset value of the ETF.

Management Fees

RBC 2016 ETF up to 0.20%



The ETF’s units have been available for sale to unitholders since September 15, 2011.






Corporate Bonds Financials 23.5 Energy 5.5 Industrials 1.9 Infrastructure 1.3Other Net Assets 67.8


Cash and Cash Equivalents 67.8The Toronto-Dominion Bank, FRN 4.78% Dec 14, 2105 8.2 National Bank of Canada 2.70% Dec 15, 2016 4.2 The Manufacturers Life Insurance Co., FRN 4.21% Nov 18, 2021 3.0 GE Capital Canada Funding Co. 3.35% Nov 23, 2016 2.8 Ford Credit Canada Ltd. 2.63% Nov 21, 2016 2.7 Daimler Canada Finance Inc. 3.28% Sep 15, 2016 2.6 TransCanada PipeLines Ltd. 4.65% Oct 03, 2016 2.2 George Weston Ltd. 3.78% Oct 25, 2016 1.9 Brookfield Renewable Energy Partners ULC 6.13% Nov 30, 2016 1.7 Enbridge Inc. 5.00% Aug 09, 2016 1.6 Emera Inc. 2.96% Dec 13, 2016 1.3 Total 100.0



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RBC ETF


June 30, 2016








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Declines in riskier assets, such as corporate bonds, extended into early 2016. Prices for such assets bottomed in mid-February, when a recovery began in non-government bonds, equities and commodities. Government yields in some countries fell to new lows, as central banks in Europe and Japan expanded bond-buying programs aimed at stimulating growth. The Bank of Canada (the “BOC”) refrained from lowering its benchmark interest rate on expectations of new spending by the federal government and a rally in oil prices. Efforts to weaken the U.S. dollar, softer U.S. economic statistics and concerns about the U.K.’s vote in June to leave the EU resulted in the U.S. Federal Reserve (the “Fed”) appearing to put off rate increases until at least later this year.

Corporate bonds with one year left until maturity outperformed government bonds during the first half of the year, as corporate bond yields declined over the period. Meanwhile, the lack of any change in interest rates by the BOC, coupled with expectations that the Fed might raise rates, resulted in yields on shorter-dated Government of Canada bonds finishing the first half of the year essentially unchanged.

Recent DevelopmentsThe deteriorating health of corporate balance sheets and higher default rates remain a concern for the portfolio manager, considering that extraordinary accommodative monetary policies have done little to bolster global economic growth. The BOC will likely keep interest rates unchanged for the rest of 2016, as government spending is expected to help offset weakness in the economy. Long term, negative government bond yields in Germany and Japan – where investors in some cases actually pay to hold safe-haven government bonds – and the U.K. vote could have negative consequences. In the view of the portfolio manager, returns will remain volatile and uncertain, and bond yields will likely remain lower for longer.








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RBC 2017 ETFJune 30, 2016 19.53 0.38 (0.03) (0.06) (0.14) 0.15 (0.37) – – – (0.37) 19.30 Dec. 31, 2015 19.82 0.78 (0.05) (0.03) (0.33) 0.37 (0.70) – – – (0.70) 19.53 Dec. 31, 2014 19.87 0.80 (0.06) (0.02) (0.16) 0.56 (0.70) – – – (0.70) 19.82 Dec. 31, 2013 20.14 0.82 (0.07) – (0.32) 0.43 (0.73) – – (0.01) (0.74) 19.84 Dec. 31, 2012 19.90 0.82 (0.07) 0.02 0.18 0.95 (0.75) – – – (0.75) 20.14Dec. 31, 20113 20.00† 0.26 (0.02) – (0.08) 0.16 (0.14) – – (0.06) (0.20) 19.90





RBC 2017 ETFJune 30, 2016 91 696 4 750 0.28 0.28 – 11.04 19.30 19.26Dec. 31, 2015 77 131 3 950 0.28 0.28 – 5.67 19.53 19.50Dec. 31, 2014 54 495 2 750 0.28 0.28 – 11.12 19.82 19.83Dec. 31, 2013 23 849 1 200 0.34 0.34 – 12.44 19.87 20.00 Dec. 31, 2012 16 674 826 0.34 0.34 – 40.53 20.19 20.31Dec. 31, 20114 5 985 300 0.35 0.42 – – 19.95 19.95






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Management Fees










Corporate Bonds Financials 71.9 Communication 14.4 Infrastructure 9.1 Energy 1.7 Industrials 1.7 Other Net Assets 1.2

Top 25 Holdings % of Net Asset Value

Royal Bank of Canada 3.66% Jan 25, 2017 7.2 The Toronto-Dominion Bank, FRN 5.76% Dec 18, 2106 6.9 Bank of Nova Scotia 4.10% Jun 08, 2017 5.9 HSBC Bank Canada 3.56% Oct 04, 2017 5.6 Canadian Imperial Bank of Commerce 3.95% Jul 14, 2017 5.3 Bank of Montreal 2.24% Dec 11, 2017 4.9 Canadian Imperial Bank of Commerce 2.35% Oct 18, 2017 4.6 Sun Life Financial Inc., FRN 4.38% Mar 02, 2022 3.9 Bank of Nova Scotia, FRN 2.90% Aug 03, 2022 3.9 Bell Canada 5.00% Feb 15, 2017 3.9 TELUS Corp. 4.95% Mar 15, 2017 3.8 Hydro One Inc. 5.18% Oct 18, 2017 3.5 Caisse Centrale Desjardins 3.50% Oct 05, 2017 3.4 National Bank of Canada 2.69% Aug 21, 2017 3.4 Manufacturers Life Insurance Co., FRN 4.17% Jun 01, 2022 2.8 Ford Credit Canada Ltd. 4.88% Feb 08, 2017 2.8 Bank of Montreal 5.45% Jul 17, 2017 2.8 Rogers Communications Inc. 3.00% Jun 06, 2017 2.6 Greater Toronto Airports Authority 4.85% Jun 01, 2017 2.6 VW Credit Canada Inc. 2.45% Nov 14, 2017 2.5 HSBC Bank Canada, FRN 4.80% Apr 10, 2022 2.2 Shaw Communications Inc. 5.70% Mar 02, 2017 2.2 Bank of Montreal 4.55% Aug 01, 2017 2.1 Bell Canada 4.37% Sep 13, 2017 2.0 407 International Inc. 3.87% Nov 24, 2017 1.7 Top 25 Holdings 92.5


20


RBC ETF


June 30, 2016








21








Corporate bonds with two years left until maturity outperformed government bonds during the first half of the year, as corporate bond yields declined over the period. Meanwhile, the lack of any change in interest rates by the BOC, coupled with expectations that the Fed might raise rates, resulted in yields on shorter-dated Government of Canada bonds finishing the first half of the year essentially unchanged.








22








23






RBC 2018 ETFJune 30, 2016 19.81 0.36 (0.03) (0.02) (0.11) 0.20 (0.32) – – – (0.32) 19.68 Dec. 31, 2015 19.93 0.73 (0.06) 0.01 (0.24) 0.44 (0.66) – – – (0.66) 19.81 Dec. 31, 2014 19.62 0.74 (0.06) – 0.16 0.84 (0.65) – – – (0.65) 19.93 Dec. 31, 2013 20.09 0.89 (0.07) (0.13) (0.47) 0.22 (0.81) – – – (0.81) 19.58 Dec. 31, 2012 19.82 0.93 (0.07) – 0.32 1.18 (0.87) – – – (0.87) 20.09Dec. 31, 20113 20.00† 0.29 (0.02) – (0.15) 0.12 (0.16) – – (0.07) (0.23) 19.82





RBC 2018 ETFJune 30, 2016 91 507 4 650 0.28 0.28 – 8.88 19.68 19.67Dec. 31, 2015 75 279 3 800 0.28 0.28 – 5.16 19.81 19.83Dec. 31, 2014 45 850 2 300 0.29 0.29 – 0.72 19.93 19.94Dec. 31, 2013 19 622 1 000 0.34 0.34 – 74.31 19.62 19.75 Dec. 31, 2012 12 194 606 0.34 0.34 – 24.79 20.14 20.16Dec. 31, 20114 5 962 300 0.35 0.41 – 0.24 19.87 19.94






24




Management Fees










Corporate Bonds Financials 70.4 Infrastructure 9.3 Communication 6.4 Industrials 6.2 Energy 3.9 Real Estate 2.9Other Net Assets 0.9


Wells Fargo Canada Corp 2.78% Nov 15, 2018 5.7 HSBC Bank Canada 2.08% Nov 26, 2018 5.6 Royal Bank of Canada 3.77% Mar 30, 2018 5.1 Bank of Montreal 3.21% Sep 13, 2018 4.8 Bank of Nova Scotia 2.24% Mar 22, 2018 4.5 Bank of Montreal, FRN 6.17% Mar 28, 2023 4.3 Hydro One Inc. 2.78% Oct 09, 2018 4.3 Bank of Nova Scotia 2.75% Aug 13, 2018 4.3 National Bank of Canada 2.79% Aug 09, 2018 4.3 Royal Bank of Canada 2.89% Oct 11, 2018 4.2 The Toronto-Dominion Bank, FRN 5.83% Jul 09, 2023 3.4 American Express Canada Credit Corp. 2.31% Mar 29, 2018 3.2 Great-West Lifeco Finance Delaware LP II, FRN 7.13% Jun 26, 2068 3.0 Greater Toronto Airports Authority 5.26% Apr 17, 2018 3.0 Bell Canada 4.40% Mar 16, 2018 2.9 Ford Credit Canada Ltd. 3.70% Aug 02, 2018 2.9 bcIMC Realty Corp. 2.79% Aug 02, 2018 2.9 Toyota Credit Canada Inc. 2.80% Nov 21, 2018 2.9 Toyota Credit Canada Inc. 2.75% Jul 18, 2018 2.8 Sobeys Inc. 3.52% Aug 08, 2018 2.8 Canadian Imperial Bank of Commerce, FRN 6.00% Jun 06, 2023 2.7 Bell Canada 3.50% Sep 10, 2018 2.3 Dollarama Inc. 3.10% Nov 05, 2018 2.3 Manulife Financial Corp. 5.51% Jun 26, 2018 2.3 Suncor Energy Inc. 5.80% May 22, 2018 2.1 Top 25 Holdings 88.6


25


RBC ETF


June 30, 2016








26








Corporate bonds with three years left until maturity outperformed government bonds during the first half of the year, as corporate bond yields declined over the period. Meanwhile, the lack of any change in interest rates by the BOC, coupled with expectations that the Fed might raise rates, resulted in yields on shorter-dated Government of Canada bonds finishing the first half of the year essentially unchanged.









27







28






RBC 2019 ETFJune 30, 2016 20.15 0.41 (0.03) (0.01) (0.05) 0.32 (0.38) – – – (0.38) 20.08 Dec. 31, 2015 20.27 0.83 (0.06) (0.01) (0.23) 0.53 (0.76) – – – (0.76) 20.15 Dec. 31, 2014 19.77 0.87 (0.06) – 0.27 1.08 (0.76) – (0.01) – (0.77) 20.27 Dec. 31, 2013 20.28 0.89 (0.07) (0.01) (0.61) 0.20 (0.80) – – – (0.80) 19.72 Dec. 31, 2012 19.96 0.92 (0.07) 0.07 0.16 1.08 (0.87) – – – (0.87) 20.28Dec. 31, 20113 20.00† 0.29 (0.02) – 0.01 0.28 (0.16) – – (0.07) (0.23) 19.96





RBC 2019 ETFJune 30, 2016 107 436 5 350 0.28 0.28 – 18.85 20.08 20.01Dec. 31, 2015 90 666 4 500 0.28 0.28 – 15.33 20.15 20.10Dec. 31, 2014 60 811 3 000 0.28 0.28 – 20.04 20.27 20.28 Dec. 31, 2013 21 747 1 100 0.33 0.33 – 8.02 19.77 19.85 Dec. 31, 2012 14 352 706 0.33 0.33 – 59.92 20.34 20.36Dec. 31, 20114 6 001 300 0.35 0.41 – 2.26 20.00 19.98






29




Management Fees










Corporate Bonds Financials 57.5 Infrastructure 12.3 Energy 11.1 Industrials 9.7 Communication 8.3 Other Net Assets 1.1


Wells Fargo Canada Corp. 2.94% Jul 25, 2019 9.9 Bank of Nova Scotia, FRN 3.04% Oct 18, 2024 9.7 National Bank of Canada 2.40% Oct 28, 2019 9.3 Greater Toronto Airports Authority 5.96% Nov 20, 2019 6.3 Shaw Communications Inc. 5.65% Oct 01, 2019 6.3 Brookfield Asset Management Inc. 3.95% Apr 09, 2019 5.7 Royal Bank of Canada 2.98% May 07, 2019 5.1 Manulife Financial Corp. 7.77% Apr 08, 2019 4.8 Royal Bank of Canada, FRN 2.99% Dec 06, 2024 4.7 Enbridge Inc. 4.77% Sep 02, 2019 3.9 IGM Financial Inc. 7.35% Apr 08, 2019 3.8 NAV Canada 5.30% Apr 17, 2019 3.5 CU Inc. 6.80% Aug 13, 2019 3.2 Canadian Imperial Bank of Commerce 2.35% Jun 24, 2019 3.0 Sun Life Financial Inc. 5.70% Jul 02, 2019 2.9 Toronto Hydro Corp. 4.49% Nov 12, 2019 2.5 Cameco Corp. 5.67% Sep 02, 2019 2.5 Intact Financial Corp. 5.41% Sep 03, 2019 2.4 Fairfax Financial Holdings Ltd. 7.50% Aug 19, 2019 2.0 Enbridge Pipelines Inc. 4.49% Nov 12, 2019 1.8 SNC-Lavalin Group Inc. 6.19% Jul 03, 2019 1.5 Rogers Communications Inc. 5.38% Nov 04, 2019 1.4 TransAlta Corp. 6.40% Nov 18, 2019 1.3 Westcoast Energy Inc. 5.60% Jan 16, 2019 0.9 TELUS Corp. 5.05% Dec 04, 2019 0.7 Top 25 Holdings 99.1


30


RBC ETF


June 30, 2016








31








Corporate bonds with four years left until maturity outperformed government bonds during the first half of the year, as yields on corporate bonds fell more than yields on government bonds. The overall fall in long-term yields and rise in bond prices came amid asset purchases by the European and Japanese central banks and the realization that the Fed was less likely to immediately resume interest-rate hikes.








32








33






RBC 2020 ETFJune 30, 2016 20.52 0.32 (0.03) (0.01) 0.15 0.43 (0.28) – – – (0.28) 20.67 Dec. 31, 2015 20.49 0.70 (0.06) (0.06) (0.26) 0.32 (0.63) – – – (0.63) 20.52 Dec. 31, 2014 19.81 0.84 (0.06) (0.03) 0.62 1.37 (0.76) – – – (0.76) 20.49 Dec. 31, 2013 20.55 0.88 (0.07) (0.10) (0.69) 0.02 (0.80) – – – (0.80) 19.77 Dec. 31, 2012 20.07 0.88 (0.07) 0.08 0.42 1.31 (0.83) – – – (0.83) 20.55Dec. 31, 20113 20.00† 0.28 (0.02) – 0.13 0.39 (0.16) – – (0.06) (0.22) 20.07





RBC 2020 ETFJune 30, 2016 75 432 3 650 0.28 0.28 – 15.66 20.67 20.61Dec. 31, 2015 58 490 2 850 0.29 0.29 – 49.49 20.52 20.51Dec. 31, 2014 14 343 700 0.29 0.29 – 31.67 20.49 20.51Dec. 31, 2013 9 904 500 0.34 0.34 – 43.34 19.81 19.85 Dec. 31, 2012 10 295 500 0.34 0.34 – 29.30 20.59 20.63Dec. 31, 20114 6 036 300 0.35 0.41 – 0.68 20.12 20.00






34




Management Fees






For the 12-month periods ended December 31 and the six-month period ended June 30, 2016




Corporate Bonds Financials 74.9 Communication 10.1 Energy 6.4 Infrastructure 4.1 Real Estate 1.9 Industrials 1.7Other Net Assets 0.9


Royal Bank of Canada 1.92% Jul 17, 2020 9.2 Caisse Centrale Desjardins 1.75% Mar 02, 2020 8.3 Bank of Nova Scotia 2.27% Jan 13, 2020 7.8 The Toronto-Dominion Bank 2.56% Jun 24, 2020 7.2 Bank of Montreal 2.84% Jun 04, 2020 7.0 HSBC Bank Canada 2.94% Jan 14, 2020 6.6 National Bank of Canada 1.74% Mar 03, 2020 6.1 Capital Desjardins Inc. 5.19% May 05, 2020 6.1 Great-West Lifeco Inc. 4.65% Aug 13, 2020 3.4 Thomson Reuters Corp. 4.35% Sep 30, 2020 3.3 Enbridge Inc. 4.53% Mar 09, 2020 3.3 General Motors Financial of Canada Ltd. 3.08% May 22, 2020 3.1 Sun Life Financial Inc., FRN 2.60% Sep 25, 2025 3.1 Rogers Communications Inc. 4.70% Sep 29, 2020 3.0 Enbridge Pipelines Inc. 4.45% Apr 06, 2020 2.3 Bank of Nova Scotia 2.09% Sep 09, 2020 2.2 407 International Inc. 4.99% Jun 16, 2020 2.1 TELUS Corp. 5.05% Jul 23, 2020 2.0 Hydro One Inc. 4.40% Jun 01, 2020 2.0 OMERS Realty Corp. 3.20% Jul 24, 2020 1.9 Shaw Communications Inc. 5.50% Dec 07, 2020 1.7 HSBC Bank Canada 1.82% Jul 07, 2020 1.5 Genworth MI Canada Inc. 5.68% Jun 15, 2020 1.5 Loblaw Cos Ltd. 5.22% Jun 18, 2020 1.2 The Toronto-Dominion Bank 1.69% Apr 02, 2020 1.1 Top 25 Holdings 97.0


35


RBC ETF


June 30, 2016








36








Corporate bonds with five years left until maturity outperformed government bonds during the first half of the year, as yields on corporate bonds fell more than yields on government bonds. The overall fall in long-term yields and rise in bond prices came amid asset purchases by the European and Japanese central banks and the realization that the Fed was less likely to immediately resume interest-rate hikes.









37







38






RBC 2021 ETFJune 30, 2016 20.21 0.35 (0.03) 0.04 0.26 0.62 (0.30) – – – (0.30) 20.52 Dec. 31, 2015 20.13 0.73 (0.06) (0.01) 0.01 0.67 (0.56) – – (0.09) (0.65) 20.21 Dec. 31, 2014 19.17 0.78 (0.06) 0.03 0.63 1.38 (0.68) – – (0.02) (0.70) 20.13 Dec. 31, 2013 19.93 0.81 (0.07) (0.07) (0.77) (0.10) (0.77) – – – (0.77) 19.12 Dec. 31, 20123 20.00† 0.20 (0.02) – 0.03 0.21 (0.17) – – – (0.17) 19.93


2 Distributions are either paid in cash, reinvested in additional units of the ETF, or both.3 From October 10, 2012.† Initial offering net asset value per unit.



RBC 2021 ETFJune 30, 2016 65 656 3 200 0.28 0.28 – 24.95 20.52 20.49Dec. 31, 2015 46 475 2 300 0.28 0.28 – 34.15 20.21 20.24Dec. 31, 2014 9 060 450 0.29 0.29 – 63.45 20.13 20.51Dec. 31, 2013 3 834 200 0.34 0.34 – 10.97 19.17 19.26 Dec. 31, 20124 3 995 200 0.34 0.34 – – 19.98 20.05




4 From October 10, 2012.


39




Management Fees




The ETF’s units have been available for sale to unitholders since October 10, 2012.






Corporate Bonds Financials 52.7 Communication 15.8 Energy 10.5 Infrastructure 8.7 Real Estate 7.5 Industrials 4.0 Other Net Assets 0.8


HSBC Bank Canada 2.91% Sep 29, 2021 7.9 Thomson Reuters Corp. 3.31% Nov 12, 2021 6.4 Bank of Montreal 3.40% Apr 23, 2021 6.2 Rogers Communications Inc. 5.34% Mar 22, 2021 6.0 TransCanada PipeLines Ltd. 3.65% Nov 15, 2021 6.0 Capital Desjardins Inc., FRN 4.95% Dec 15, 2026 5.8 407 International Inc. 4.30% May 26, 2021 5.0 Enbridge Inc. 3.16% Mar 11, 2021 4.6 Honda Canada Finance Inc. 2.16% Feb 18, 2021 4.5 Bank of Nova Scotia 3.27% Jan 11, 2021 4.1 Wells Fargo Canada Corp. 3.04% Jan 29, 2021 4.0 Royal Bank of Canada 2.86% Mar 04, 2021 4.0 Sun Life Financial Inc., FRN 3.10% Feb 19, 2026 4.0 Brookfield Asset Management Inc. 5.30% Mar 01, 2021 4.0 bcIMC Realty Corp 2.10% Jun 03, 2021 4.0 Bank of Nova Scotia 2.87% Jun 04, 2021 3.8 Sun Life Financial Inc. 4.57% Aug 23, 2021 3.7 Toronto Hydro Corp. 3.54% Nov 18, 2021 3.7 OMERS Realty Corp. 2.97% Apr 05, 2021 3.5 Shaw Communications Inc. 3.15% Feb 19, 2021 3.4 Fairfax Financial Holdings Ltd. 6.40% May 25, 2021 3.0 HSBC Bank Canada 2.45% Jan 29, 2021 1.6 Cash and Cash Equivalents 0.8Total 100.0



40


RBC ETF

RBC QUANT CANADIAN DIVIDEND LEADERS ETF

June 30, 2016








41



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality Canadian dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth.

Portfolio securities for the RBC Quant Canadian Dividend Leaders ETF will be selected using a rules-based, multifactor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced initially on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.



The ETF’s relative exposure to Valeant Pharmaceuticals, TMX Group and Inter Pipeline had the most positive impact on the ETF’s returns, while Barrick Gold, Bank of Nova Scotia and TransCanada were negative for performance. The ETF had the highest relative exposure to Intact Financial, Canadian Imperial Bank of Commerce and Brookfield Property Partners, and the smallest exposure to Bank of Nova Scotia, Toronto-Dominion Bank and Canadian National Railway.

At the sector level, the ETF had the highest relative weightings in the Financials, Telecommunication Services and Utilities sectors, and lowest exposure to Industrials, Consumer Staples and Materials.

Recent DevelopmentsThere have been no material changes to the ETF’s strategy. The ETF will continue to hold stocks that pass the strategy’s quantitative screening process and sell positions in stocks that no longer meet the requirements.











42




43






Canadian Dividend ETFJune 30, 2016 17.74 0.45 (0.05) (0.60) 2.04 1.84 – (0.38) – – (0.38) 19.08 Dec. 31, 2015 20.44 0.85 (0.10) (1.17) (1.69) (2.11) – (0.68) – (0.09) (0.77) 17.74 Dec. 31, 20143 20.00† 0.90 (0.10) 0.51 (2.20) (0.89) – (0.52) (0.31) (0.04) (0.87) 20.44





Canadian Dividend ETFJune 30, 2016 90 626 4 750 0.43 0.43 0.07 22.65 19.08 19.09Dec. 31, 2015 61 195 3 450 0.43 0.43 0.09 67.74 17.74 18.01Dec. 31, 20144 47 010 2 300 0.44 0.44 – 44.85 20.44 20.39






Management Fees

Canadian Dividend ETF 0.39%


44




Canadian Equities Financials 52.8 Energy 17.9 Telecommunication Services 8.4 Utilities 7.2 Materials 5.4 Consumer Discretionary 4.2 Industrials 2.6 Health Care 0.3 Information Technology 0.3 Consumer Staples 0.3 Other Net Assets 0.6


Royal Bank of Canada 6.4 Canadian Imperial Bank of Commerce 4.4 BCE Inc. 3.4 Intact Financial Corp. 3.1 Great-West Lifeco Inc. 2.8 TELUS Corp. 2.6 Power Financial Corp. 2.5 H&R Real Estate Investment Trust 2.5 CI Financial Corp. 2.5 Rogers Communications Inc. 2.4 Inter Pipeline Ltd. 2.4 Brookfield Property Partners LP 2.4 Smart Real Estate Investment Trust 2.3 Cineplex Inc. 2.3 Canadian Apartment Properties REIT 2.3 Keyera Corp. 2.2 Industrial Alliance Insurance & Financial Services Inc. 2.1 Canadian Real Estate Investment Trust 2.1 Agrium Inc. 2.0 Shaw Communications Inc. 1.9 Suncor Energy Inc. 1.9 IGM Financial Inc. 1.9 Cominar Real Estate Investment Trust 1.8 Canadian Utilities Ltd. 1.8 First Capital Realty Inc. 1.8 Top 25 Holdings 63.8








45


RBC ETF

RBC QUANT U.S. DIVIDEND LEADERS ETF

June 30, 2016








46



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality U.S. dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth.

Portfolio securities for the RBC Quant U.S. Dividend Leaders ETF will be selected using a rules-based, multifactor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced initially on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.



The ETF’s relative exposure to Verizon Communications, Marathon Oil and Apple Inc. had the most positive impact on the ETF’s returns, while Valero Energy, Pfizer and Western Digital were negative for performance.

The ETF had the highest relative exposure to Verizon Communications, AT&T and Pfizer, and the smallest exposure to Facebook, General Electric and Berkshire Hathaway.

At the sector level, the ETF had the highest relative weightings in the Industrials, Consumer Staples and Utilities sectors, and the lowest exposure to Information Technology, Consumer Discretionary and Health Care.












47






U.S. Dividend ETFJune 30, 2016 26.69 0.44 (0.12) 0.08 0.44 0.84 – (0.32) – – (0.32) 27.11 Dec. 31, 2015 23.79 0.89 (0.25) 1.41 1.11 3.16 – (0.59) (1.26) – (1.85) 26.69 Dec. 31, 20143 20.00† 0.88 (0.23) 0.47 3.91 5.03 – (0.37) (0.27) (0.01) (0.65) 23.79





U.S. Dividend ETFJune 30, 2016 290 103 10 700 0.43 0.43 0.04 41.59 27.11 26.94Dec. 31, 2015 250 912 9 400 0.43 0.43 0.05 110.87 26.69 26.64Dec. 31, 20144 132 021 5 550 0.44 0.44 0.01 47.29 23.79 23.95






Management Fees

U.S. Dividend ETF 0.39%


48




United States Equities Financials 17.5 Consumer Staples 13.7 Industrials 13.2 Information Technology 12.8 Health Care 10.8 Energy 8.3 Utilities 7.5 Consumer Discretionary 7.4 Telecommunication Services 5.3 Materials 3.2 Other Net Assets 0.3


AT&T Inc. 2.6 Verizon Communications Inc. 2.5 Johnson & Johnson 2.4 Exxon Mobil Corp. 2.1 Merck & Co Inc. 1.9 Coca-Cola Co. 1.8 Apple Inc. 1.8 Philip Morris International Inc. 1.7 PepsiCo Inc. 1.7 Altria Group Inc. 1.7 Wal-Mart Stores Inc. 1.7 Amgen Inc. 1.6 Microsoft Corp. 1.6 Abbvie Inc. 1.5 McDonald’s Corp. 1.4 Eli Lilly & Co. 1.4 Schlumberger Ltd. 1.4 Abbott Laboratories 1.3 Kimberly-Clark Corp. 1.2 Intel Corp. 1.2 3M Co. 1.2 Cisco Systems Inc. 1.2 International Business Machines Corp. 1.1 United Parcel Service Inc. 1.1 ConocoPhillips 1.1 Top 25 Holdings 40.2








49


RBC ETF

RBC QUANT U.S. DIVIDEND LEADERS (CAD HEDGED) ETF

June 30, 2016








50



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure, either directly or indirectly through investment in other mutual funds managed by RBC GAM or an affiliate, to the performance of a diversified portfolio of high-quality U.S. dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth, while seeking to minimize the exposure to currency fluctuations between the U.S. and Canadian dollars.

The ETF intends to invest substantially all of its assets in units of the RBC Quant U.S. Dividend Leaders ETF (the “underlying fund”) but may also invest directly in a portfolio of U.S. dividend-paying equity securities. Portfolio securities for the underlying fund (and for the ETF, to the extent it invests directly in equity securities) will be selected using a rules-based, multifactor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.

The ETF uses derivatives to hedge against fluctuations in the U.S. dollar to minimize exposure to changes of the U.S. dollar relative to the Canadian dollar.



The ETF’s relative exposure to Verizon Communications, Marathon Oil and Apple Inc. had the most positive impact on the ETF’s returns, while Valero Energy, Pfizer and Western Digital were negative for performance. The ETF had the highest relative exposure to Verizon Communications, AT&T and Pfizer, and the smallest exposure to Facebook, General Electric and Berkshire Hathaway.

At the sector level, the ETF had the highest relative weightings in the Industrials, Consumer Staples and Utilities sectors, and the smallest exposure to Information Technology, Consumer Discretionary and Health Care.











51





52






U.S. Div. (CAD Hedged) ETFJune 30, 2016 20.16 0.26 – 1.61 0.43 2.30 – (0.25) – – (0.25) 21.76 Dec. 31, 2015 21.47 0.56 – (2.70) 1.53 (0.61) (0.01) (0.49) – – (0.50) 20.16 Dec. 31, 20143 20.00† 0.14 – (0.09) 0.71 0.76 – (0.08) (0.03) (0.01) (0.12) 21.47





U.S. Div. (CAD Hedged) ETFJune 30, 2016 103 364 4 750 0.43 0.43 0.12 15.09 21.76 21.70Dec. 31, 2015 52 405 2 600 0.43 0.43 0.06 38.13 20.16 20.28Dec. 31, 20144 10 735 500 0.44 0.44 – 5.69 21.47 21.73







53










United States Equities Financials 17.5 Consumer Staples 13.7 Industrials 13.2 Information Technology 12.8 Health Care 10.8 Energy 8.3 Utilities 7.5 Consumer Discretionary 7.4 Telecommunication Services 5.3 Materials 3.2 Other Net Assets 0.3


AT&T Inc. 2.6 Verizon Communications Inc. 2.5 Johnson & Johnson 2.4 Exxon Mobil Corp. 2.1 Merck & Co Inc. 1.9 Coca-Cola Co. 1.8 Apple Inc. 1.8 Philip Morris International Inc. 1.7 PepsiCo Inc. 1.7 Altria Group Inc. 1.7 Wal-Mart Stores Inc. 1.7 Amgen Inc. 1.6 Microsoft Corp. 1.6 Abbvie Inc. 1.5 McDonald’s Corp. 1.4 Eli Lilly & Co. 1.4 Schlumberger Ltd. 1.4 Abbott Laboratories 1.3 Kimberly-Clark Corp. 1.2 Intel Corp. 1.2 3M Co. 1.2 Cisco Systems Inc. 1.2 International Business Machines Corp. 1.1 United Parcel Service Inc. 1.1 ConocoPhillips 1.1 Top 25 Holdings 40.2

* The ETF invests substantially all of its assets directly in the RBC Quant U.S. Dividend Leaders ETF. The above are the Top 25 holdings of the RBC Quant U.S. Dividend Leaders ETF.



54


RBC ETF

RBC QUANT EUROPEAN DIVIDEND LEADERS ETF

June 30, 2016








55



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality European dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth.

Portfolio securities for the ETF will be selected using a rules-based, multi-factor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.


Over the past six months, the ETF’s units lost 6.1%. The ETF’s return is after the deduction of fees and expenses. See the Financial Highlights section for the management expense ratios and the Past Performance section for the returns of any other series, which may vary because of differences in management fees and expenses.

The ETF’s relative exposure to Royal Dutch Shell, Novartis and Bayer had the most positive impact on the ETF’s returns, while Coloplast, BASF and Deutsche Bank were negative for performance. The ETF had the highest relative exposure to Unilever, GlaxoSmithKline and Coloplast, and the lowest relative exposure to Novartis, Roche Holding and Nestlé.

At the sector level, the ETF had the highest relative weightings in Energy, Utilities and Telecommunication Services, and the smallest exposure to Consumer Discretionary, Consumer Staples and Health Care.












56






European Dividend ETFJune 30, 2016 22.33 0.75 (0.20) (0.47) (1.30) (1.22) – (0.37) – – (0.37) 20.61 Dec. 31, 2015 20.49 0.97 (0.39) (0.15) 0.20 0.63 – (0.63) – (0.06) (0.69) 22.33 Dec. 31, 20143 20.00† 0.08 (0.13) (0.10) 0.53 0.38 – (0.01) – (0.07) (0.08) 20.49





European Dividend ETFJune 30, 2016 114 376 5 550 0.56 0.56 0.44 83.53 20.61 20.46Dec. 31, 2015 94 892 4 250 0.56 0.56 0.58 234.29 22.33 22.28Dec. 31, 20144 7 170 350 0.57 0.57 0.39 608.53 20.49 20.61






Management Fees

European Dividend ETF 0.49%


57










European Equities Financials 23.7 Energy 14.1 Telecommunication Services 12.3 Industrials 9.9 Consumer Staples 9.8 Health Care 9.6 Utilities 9.3 Materials 6.9 Consumer Discretionary 4.0 Information Technology 0.1 Other Net Assets 0.3


Unilever NV 9.8 Coloplast A/S 9.7 Royal Dutch Shell PLC 5.7 BHP Billiton PLC 4.7 Total SA 4.3 Swisscom AG 2.9 TeliaSonera AB 2.8 Telenor ASA 2.8 Statoil ASA 2.5 BAE Systems PLC 2.4 Voestalpine AG 2.3 National Grid PLC 2.1 SGS SA 2.1 Proximus 2.1 Tele2 AB 1.7 HSBC Holdings PLC 1.7 Skanska AB 1.7 Technip SA 1.6 SSE PLC 1.4 Snam SpA 1.3 Centrica PLC 1.3 Allianz SE 1.3 Andritz AG 1.3 Randstad Holding NV 1.3 Metso OYJ 1.2 Top 25 Holdings 72.0


58


RBC ETF

RBC QUANT EUROPEAN DIVIDEND LEADERS (CAD HEDGED) ETF

June 30, 2016








59



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure, either directly or indirectly through investment in other mutual funds managed by RBC GAM or an affiliate, to the performance of a diversified portfolio of high-quality European dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth, while seeking to minimize the exposure to currency fluctuations between foreign currencies and the Canadian dollar.

The ETF intends to invest substantially all of its assets in units of the RBC Quant European Dividend Leaders ETF (the “underlying fund”) but may also invest directly in a portfolio of European dividend-paying equity securities. Portfolio securities for the underlying fund (and for the ETF, to the extent it invests directly in equity securities) will be selected using a rules-based, multi-factor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.

The ETF uses derivatives to hedge against fluctuations in foreign currencies to minimize exposure to changes of the foreign currencies held by the ETF relative to the Canadian dollar.



The ETF’s relative exposure to Royal Dutch Shell, Novartis and Bayer had the most positive impact on the ETF’s returns, while Coloplast, BASF and Deutsche Bank were negative for performance. The ETF had the highest relative exposure to Unilever, GlaxoSmithKline and Coloplast, and the smallest exposure to Novartis, Roche Holding and Nestlé.

At the sector level, the ETF had the highest relative weightings in Energy, Utilities and Telecommunication Services, and the smallest exposure to Consumer Discretionary, Consumer Staples and Health Care.











60





61






Europ. Div. (CAD Hedged) ETFJune 30, 2016 20.61 0.35 – 0.72 (0.83) 0.24 – (0.34) – – (0.34) 20.52 Dec. 31, 2015 20.96 0.67 – (2.40) (0.34) (2.07) – (0.63) – (0.01) (0.64) 20.61 Dec. 31, 20143 20.00† 0.11 – 0.07 0.58 0.76 – (0.01) (0.04) (0.07) (0.12) 20.96





Europ. Div. (CAD Hedged) ETFJune 30, 2016 63 599 3 100 0.55 0.55 0.64 20.94 20.52 20.56Dec. 31, 2015 69 027 3 350 0.56 0.56 0.59 35.27 20.61 20.63Dec. 31, 20144 5 239 250 0.57 0.57 – 3.50 20.96 21.11







62










European Equities Financials 23.7 Energy 14.1 Telecommunication Services 12.3 Industrials 9.9 Consumer Staples 9.8 Health Care 9.6 Utilities 9.3 Materials 6.9 Consumer Discretionary 4.0 Information Technology 0.1 Other Net Assets 0.3


Unilever NV 9.8 Coloplast A/S 9.7 Royal Dutch Shell PLC 5.7 BHP Billiton PLC 4.7 Total SA 4.3 Swisscom AG 2.9 TeliaSonera AB 2.8 Telenor ASA 2.8 Statoil ASA 2.5 BAE Systems PLC 2.4 Voestalpine AG 2.3 National Grid PLC 2.1 SGS SA 2.1 Proximus 2.1 Tele2 AB 1.7 HSBC Holdings PLC 1.7 Skanska AB 1.7 Technip SA 1.6 SSE PLC 1.4 Snam SpA 1.3 Centrica PLC 1.3 Allianz SE 1.3 Andritz AG 1.3 Randstad Holding NV 1.3 Metso OYJ 1.2 Top 25 Holdings 72.0

* The ETF invests substantially all of its assets directly in the RBC Quant European Dividend Leaders ETF. The above are the Top 25 holdings of the RBC Quant European Dividend Leaders ETF.



63


RBC ETF

RBC QUANT EAFE DIVIDEND LEADERS ETF

June 30, 2016








64



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality dividend-paying equity securities in markets in Europe, Australasia and the Far East (EAFE) that will provide regular income and that have the potential for long-term capital growth.

Portfolio securities for the RBC Quant EAFE Dividend Leaders ETF will be selected using a rules-based, multifactor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced initially on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.



The ETF’s relative exposure to Royal Dutch Shell, Toyota Motor and Bayer AG had the most positive impact on the ETF’s returns, while Woolworths, Coloplast and Fanuc were negative for performance. The ETF had the highest relative exposure to GlaxoSmithKline, Japan Tobacco and Unilever, and the lowest relative exposure to Novartis, Roche Holding and Toyota Motor.

At the sector level, the ETF had the highest relative weightings in Financials, Energy and Telecommunication Services, and the lowest relative weightings in Information Technology, Consumer Discretionary and Health Care.


Related-Party TransactionsManager, Trustee and Portfolio ManagerRBC GAM is an indirect, wholly owned subsidiary of Royal Bank of Canada (“Royal Bank”) and is the manager, trustee and portfolio manager of the ETF. RBC GAM is responsible for the ETF’s day-to-day operations, holds title to the ETF’s property on behalf of its unitholders,

and provides investment advice and portfolio management services to the ETF. RBC GAM is paid a management fee by the ETF as compensation for its services.










65






EAFE Dividend ETFJune 30, 2016 23.13 0.65 (0.19) (0.31) (1.50) (1.35) – (0.38) – – (0.38) 21.30 Dec. 31, 2015 20.33 1.03 (0.33) 0.66 1.48 2.84 – (0.71) (0.52) (0.03) (1.26) 23.13 Dec. 31, 20143 20.00† 0.85 (0.35) 0.25 (0.86) (0.11) – (0.43) (0.20) – (0.63) 20.33





EAFE Dividend ETFJune 30, 2016 329 104 15 450 0.54 0.54 0.25 60.58 21.30 21.20Dec. 31, 2015 301 818 13 050 0.53 0.53 0.27 124.49 23.13 22.94Dec. 31, 20144 132 174 6 500 0.55 0.55 0.32 251.89 20.33 20.35






Management Fees

EAFE Dividend ETF 0.49%


66




International Equities Financials 27.9 Consumer Staples 12.5 Energy 10.3 Industrials 10.1 Telecommunication Services 9.7 Health Care 7.5 Utilities 7.5 Materials 6.4 Consumer Discretionary 4.0 Index Funds 2.1 Information Technology 1.6 Other Net Assets 0.4


Unilever NV 5.8 GlaxoSmithKline PLC 4.2 Japan Tobacco Inc. 3.8 Royal Dutch Shell PLC 3.6 Woolworths Ltd. 2.9 Total SA 2.7 iShares MSCI EAFE ETF 2.2 BHP Billiton Ltd. 2.0 Coloplast A/S 1.8 ABB Ltd. 1.7 FANUC Corp. 1.7 NTT DOCOMO Inc. 1.6 Statoil ASA 1.6 Mitsubishi Tanabe Pharma Corp. 1.5 Woodside Petroleum Ltd. 1.4 BAE Systems PLC 1.4 Singapore Telecommunications Ltd. 1.4 SGS SA 1.3 Telstra Corp Ltd. 1.2 Nippon Steel & Sumitomo Metal Corp. 1.1 Commonwealth Bank of Australia 1.1 National Grid PLC 1.1 Swisscom AG 1.1 Westpac Banking Corp. 1.1 Telenor ASA 1.0 Top 25 Holdings 50.3








67


RBC ETF

RBC QUANT EAFE DIVIDEND LEADERS (CAD HEDGED) ETF

June 30, 2016








68



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure, either directly or indirectly through investment in other mutual funds managed by RBC GAM or an affiliate, to the performance of a diversified portfolio of high-quality dividend-paying equity securities in markets in Europe, Australasia and the Far East (“EAFE”) that will provide regular income and that have the potential for long-term capital growth, while seeking to minimize the exposure to currency fluctuations between foreign currencies and the Canadian dollar.

The ETF intends to invest substantially all of its assets in units of the RBC Quant EAFE Dividend Leaders ETF (the “underlying fund”) but may also invest directly in a portfolio of dividend-paying equity securities in markets in Europe, Australasia and the Far East. Portfolio securities for the underlying fund (and for the ETF, to the extent it invests directly in equity securities) will be selected using a rules-based, multi-factor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.




The ETF’s relative exposure to Royal Dutch Shell, Toyota Motor and Bayer AG had the most positive impact on the ETF’s returns, while Woolworths, Coloplast and Fanuc were negative for performance. The ETF had the highest relative exposure to GlaxoSmithKline, Japan Tobacco and Unilever, and the lowest relative exposure to Novartis, Roche Holding and Toyota Motor.

At the sector level, the ETF had the highest relative weightings in Financials, Energy and Telecommunication Services, and the lowest relative weightings in Information Technology, Consumer Discretionary and Health Care.











69





70






EAFE Div. (CAD Hedged) ETFJune 30, 2016 21.44 0.36 – 0.59 (1.44) (0.49) – (0.34) – – (0.34) 20.41 Dec. 31, 2015 21.26 0.75 – (2.08) 0.51 (0.82) – (0.70) – – (0.70) 21.44 Dec. 31, 20143 20.00† 0.19 – 0.52 1.00 1.71 – (0.11) (0.43) (0.01) (0.55) 21.26





EAFE Div. (CAD Hedged) ETFJune 30, 2016 90 837 4 450 0.54 0.54 0.93 11.39 20.41 20.41Dec. 31, 2015 67 551 3 150 0.54 0.54 0.29 18.17 21.44 21.47Dec. 31, 20144 3 189 150 0.55 0.55 – – 21.26 21.29







71










International Equities Financials 27.9 Consumer Staples 12.5 Energy 10.3 Industrials 10.1 Telecommunication Services 9.7 Health Care 7.5 Utilities 7.5 Materials 6.4 Consumer Discretionary 4.0 Index Funds 2.1 Information Technology 1.6 Other Net Assets 0.4


Unilever NV 5.8 GlaxoSmithKline PLC 4.2 Japan Tobacco Inc. 3.8 Royal Dutch Shell PLC 3.6 Woolworths Ltd. 2.9 Total SA 2.7 iShares MSCI EAFE ETF 2.2 BHP Billiton Ltd. 2.0 Coloplast A/S 1.8 ABB Ltd. 1.7 FANUC Corp. 1.7 NTT DOCOMO Inc. 1.6 Statoil ASA 1.6 Mitsubishi Tanabe Pharma Corp. 1.5 Woodside Petroleum Ltd. 1.4 BAE Systems PLC 1.4 Singapore Telecommunications Ltd. 1.4 SGS SA 1.3 Telstra Corp Ltd. 1.2 Nippon Steel & Sumitomo Metal Corp. 1.1 Commonwealth Bank of Australia 1.1 National Grid PLC 1.1 Swisscom AG 1.1 Westpac Banking Corp. 1.1 Telenor ASA 1.0 Top 25 Holdings 50.3

* The ETF invests substantially all of its assets directly in the RBC Quant EAFE Dividend Leaders ETF. The above are the Top 25 holdings of the RBC Quant EAFE Dividend Leaders ETF.



72


RBC ETF

RBC QUANT EMERGING MARKETS DIVIDEND LEADERS ETF

June 30, 2016








73



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality emerging market dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth.

Portfolio securities for the ETF will be selected using a rules-based, multi-factor investment approach that considers a company’s balance sheet strength, the stability and sustainability of its dividend payout and its ability to grow dividends in the future. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.



The ETF’s relative exposure to China Petroleum & Chemical, Bradesco Banco and China Construction Bank had the most positive impact on the ETF’s returns, while S-Oil Corp, Oil & Natural Gas and Gulf International Services were negative for performance. The ETF had the highest relative exposure to China Petroleum & Chemical, Sasol and Oil & Natural Gas and the lowest relative exposure to Tencent Holdings, Taiwan Semiconductor and Samsung Electronics.

At the sector level, the ETF had the highest relative weightings in Financials, Telecommunication Services and Energy, and the lowest relative exposure to Information Technology, Consumer Discretionary and Consumer Staples.


Related-Party TransactionsManager, Trustee and Portfolio ManagerRBC GAM is an indirect, wholly owned subsidiary of Royal Bank of Canada (“Royal Bank”) and is the manager, trustee and portfolio manager of the ETF. RBC GAM is responsible for the ETF’s day-to-day operations, holds title to the ETF’s property on behalf of its unitholders,

and provides investment advice and portfolio management services to the ETF. RBC GAM is paid a management fee by the ETF as compensation for its services.










74






Emerging Markets Div. ETFJune 30, 2016 18.32 0.57 (0.15) (1.30) 0.83 (0.05) – (0.29) – – (0.29) 17.77 Dec. 31, 2015 20.36 0.93 (0.37) (0.90) (2.61) (2.95) – (0.60) – – (0.60) 18.32 Dec. 31, 20143 20.00† 0.09 (0.11) (0.28) 0.78 0.48 – (0.03) – (0.07) (0.10) 20.36





Emerging Markets Div. ETFJune 30, 2016 23 993 1 350 0.74 0.74 0.34 83.46 17.77 17.90Dec. 31, 2015 20 149 1 100 0.76 0.76 0.60 225.06 18.32 18.17Dec. 31, 20144 6 108 300 0.79 0.79 0.22 632.85 20.36 20.61






Management Fees

Emerging Markets Div. ETF 0.64%


75










Equities Financials 33.8 Energy 16.9 Telecommunication Services 13.1 Information Technology 6.5 Consumer Discretionary 6.4 Materials 5.0 Consumer Staples 4.7 Industrials 4.4 Index Funds 3.7 Utilities 1.9 Diversified Financials 1.9 Health Care 0.9 Other Net Assets 0.8


iShares MSCI Emerging Markets ETF 3.7 China Petroleum & Chemical Corp. 3.4 Sasol Ltd. 2.8 China Mobile Ltd. 2.4 Tupras Turkiye Petrol Rafinerileri AS 1.7 Oil & Natural Gas Corp. Ltd. 1.7 S-Oil Corp. 1.6 Telekomunikasi Indonesia Persero Tbk PT 1.5 China Construction Bank Corp. 1.5 Bharat Petroleum Corp., Ltd. 1.5 Chunghwa Telecom Co., Ltd. 1.4 China Shenhua Energy Co., Ltd. 1.4 Industrial & Commercial Bank of China Ltd. 1.3 Thai Oil PCL 1.3 Banco Bradesco SA 1.2 Bank of China Ltd. 1.2 Coal India Ltd. 1.2 Infosys Ltd. 1.1 Taiwan Mobile Co., Ltd. 1.0 Vodacom Group Ltd. 1.0 Semen Indonesia Persero Tbk PT 1.0 DiGi.Com Bhd 1.0 KT&G Corp. 1.0 Advanced Info Service PCL 1.0 ITC Ltd. 0.9 Top 25 Holdings 38.8


76


RBC ETF

RBC STRATEGIC GLOBAL DIVIDEND LEADERS ETF

June 30, 2016








77



Investment Objective and StrategiesThe ETF seeks to provide unitholders with exposure, either directly or indirectly through investment in other mutual funds managed by RBC GAM or an affiliate, to the performance of a diversified portfolio of high-quality global dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth.

The ETF invests substantially all of its assets in RBC Quant Dividend Leaders ETFs (other than RBC Quant U.S. Dividend Leaders (CAD Hedged) ETF, RBC Quant European Dividend Leaders (CAD Hedged) ETF and RBC Quant EAFE Dividend Leaders (CAD Hedged) ETF). The ETF may also invest directly in a portfolio of global dividend-paying equity securities.

The portfolio asset allocation will be reconstituted and rebalanced from time to time, and no less frequently than quarterly. The frequency of the reconstitution and rebalancing may change without notice.

In order to adjust the portfolio’s asset mix in a more timely manner, the portfolio manager may use derivatives as a substitute for direct investment in a particular market, on a short-term basis, until the portfolio’s assets can be reallocated among the RBC Quant Dividend Leaders ETFs.

Portfolio securities for each of the applicable RBC Quant Dividend Leaders ETFs, and for the ETF, to the extent it invests directly in equity securities, will be selected using a rules-based, multi-factor investment approach designed to select high-quality global dividend-paying equity securities (i.e. companies with strong balance sheets, stable and sustainable dividend payouts and the ability to grow dividends in the future). Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies.













78






Strat. Global Div. ETFJune 30, 20163 20.00† 0.37 (0.01) 0.08 1.02 1.46 – (0.30) – – (0.30) 21.10





Strat. Global Div. ETFJune 30, 20164 2 110 100 0.52 0.52 0.37 16.49 21.10 20.88








79




Equities Financials 31.5 Energy 12.4 Industrials 8.8 Consumer Staples 8.7 Telecommunication Services 7.9 Utilities 7.6 Health Care 6.6 Consumer Discretionary 5.3 Information Technology 5.1 Materials 5.0 Index Funds 0.5 Diversified Financials 0.4 Other Net Assets 0.2


RBC Quant US Dividend Leaders ETF 36.1 RBC Canadian Dividend Leaders ETF 32.2 RBC Quant EAFE Dividend Leaders ETF 22.0 RBC Quant Emerging Markets Dividend Leaders ETF 9.5 Cash and Cash Equivalents 0.2 Total 100.0





80


RBC ETF

RBC QUANT CANADIAN EQUITY LEADERS ETF

June 30, 2016








81



Investment Objective and StrategiesThe ETF seeks to provide unitholders with broad exposure to the performance of a diversified portfolio of high-quality Canadian equity securities that have the potential for long-term capital growth.

Portfolio securities for the ETF will be selected using a rules-based, multi-factor investment approach designed to select companies with a high quality of earnings while filtering out slow-growth companies and securities with expensive valuations. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.



The ETF’s relative exposure to Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Bank of Montreal had the most positive impact on the ETF’s returns, while Royal Bank of Canada, Enbridge Inc. and Toronto-Dominion Bank were negative for performance. The ETF had the highest relative exposure to Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Bank of Montreal, and the lowest relative exposure to Manulife Financial, Toronto-Dominion Bank and Alimentation Couche-Tard.

At the sector level, the ETF had the highest relative weightings in Health Care, Telecommunication Services and Utilities, and the lowest exposure to Energy, Consumer Discretionary and Materials.












82






Canadian Equity ETFJune 30, 2016 16.76 0.31 (0.05) (0.45) 2.37 2.18 – (0.21) – – (0.21) 18.48 Dec. 31, 20153 20.00† 0.42 (0.06) (0.70) (2.87) (3.21) – (0.24) – – (0.24) 16.76


2 Distributions are either paid in cash, reinvested in additional units of the ETF, or both.3 From May 5, 2015.† Initial offering net asset value per unit.



Canadian Equity ETFJune 30, 2016 5 543 300 0.44 0.44 0.07 64.74 18.48 18.48Dec. 31, 20154 3 353 200 0.44 0.44 0.03 67.50 16.76 17.02




4 From May 5, 2015.


Management Fees

Canadian Equity ETF 0.39%


83




Canadian Equities Financials 36.3 Energy 17.6 Materials 13.5 Industrials 7.9 Consumer Discretionary 6.0 Telecommunication Services 5.9 Utilities 4.3 Consumer Staples 4.3 Information Technology 2.8 Health Care 0.8 Other Net Assets 0.6


Bank of Nova Scotia 9.0 Bank of Montreal 7.5 Canadian Imperial Bank of Commerce 6.3 BCE Inc. 3.7 Suncor Energy Inc. 2.7 Sun Life Financial Inc. 2.6 Canadian Natural Resources Ltd. 2.3 Enbridge Inc. 2.3 Rogers Communications Inc. 2.2 Brookfield Asset Management Inc. 2.2 Canadian National Railway Co. 2.2 TransCanada Corp. 2.1 Barrick Gold Corp. 1.8 Agrium Inc. 1.8 Power Corp. of Canada 1.6 Goldcorp Inc. 1.4 Power Financial Corp. 1.4 Canadian Pacific Railway Ltd. 1.4 Cenovus Energy Inc. 1.3 Loblaw Cos Ltd. 1.3 Thomson Reuters Corp. 1.2 Magna International Inc. 1.2 Fortis Inc. 1.2 Industrial Alliance Insurance & Financial Services Inc. 1.1 Crescent Point Energy Corp. 1.1 Top 25 Holdings 62.9





The ETF’s units have been available for sale to unitholders since May 12, 2015.



84


RBC ETF

RBC QUANT U.S. EQUITY LEADERS ETF

June 30, 2016








85



Investment Objective and StrategiesThe ETF seeks to provide unitholders with broad exposure to the performance of a diversified portfolio of high-quality U.S. equity securities that have the potential for long-term capital growth.




The ETF’s relative exposure to ExxonMobil, Allergan and Wells Fargo had the most positive impact on the ETF’s returns, while Chevron, Pfizer and AT&T were negative for performance. The ETF had the highest relative exposure to ExxonMobil, Alphabet and Cisco Systems, and the lowest relative exposure to Facebook, Amazon.com and Berkshire Hathaway.

At the sector level, the ETF had the highest relative weightings in Information Technology, Health Care and Utilities, and the lowest exposure to Energy, Consumer Discretionary and Telecommunication Services.












86






U.S. Equity ETFJune 30, 2016 22.13 0.25 (0.09) (0.05) (0.58) (0.47) – (0.17) – – (0.17) 21.21 Dec. 31, 20153 20.00† 0.35 (0.12) 0.23 2.17 2.63 – (0.17) (0.11) (0.09) (0.37) 22.13





U.S. Equity ETFJune 30, 2016 16 965 800 0.44 0.44 0.03 48.98 21.21 20.83Dec. 31, 20154 13 281 600 0.44 0.44 0.01 93.28 22.13 22.40




4 From May 5, 2015.


Management Fees

U.S. Equity ETF 0.39%


87




United States Equities Information Technology 20.3 Financials 15.6 Health Care 15.1 Consumer Discretionary 13.2 Consumer Staples 10.0 Industrials 9.9 Energy 6.8 Utilities 4.1 Materials 2.7 Telecommunication Services 2.1 Other Net Assets 0.2


Exxon Mobil Corp. 3.6 Apple Inc. 2.7 Alphabet Inc. 2.2 Verizon Communications Inc. 2.1 Microsoft Corp. 2.0 Johnson & Johnson 1.9 JPMorgan Chase & Co. 1.8 Comcast Corp. 1.7 General Electric Co. 1.5 Pfizer Inc. 1.5 Cisco Systems Inc. 1.4 Procter & Gamble Co. 1.4 Bank of America Corp. 1.3 International Business Machines Corp. 1.3 Merck & Co Inc. 1.3 PepsiCo Inc. 1.2 Altria Group Inc. 1.2 Intel Corp. 1.1 Walt Disney Co. 1.1 Amgen Inc. 1.1 Gilead Sciences Inc. 1.1 Mastercard Inc. 1.0 Accenture PLC 0.9 3M Co. 0.9 Priceline Group Inc. 0.9 Top 25 Holdings 38.2








88


RBC ETF

RBC QUANT U.S. EQUITY LEADERS (CAD HEDGED) ETF

June 30, 2016








89



Investment Objective and StrategiesThe ETF seeks to provide unitholders with broad exposure, either directly or indirectly through investment in other mutual funds managed by RBC GAM or an affiliate, to the performance of a diversified portfolio of high-quality U.S. equity securities that have the potential for long-term capital growth, while seeking to minimize the exposure to currency fluctuations between the U.S. and Canadian dollars.

The ETF intends to invest substantially all of its assets in units of the RBC Quant U.S. Equity Leaders ETF (the “underlying RBC ETF”) but may also invest directly in a portfolio of U.S. equity securities. Portfolio securities for the underlying RBC ETF (and for the ETF, to the extent it invests directly in equity securities) will be selected using a rules-based, multi-factor investment approach designed to select companies with a high quality of earnings while filtering out slow-growth companies and securities with expensive valuations. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.

The ETF uses derivatives to hedge against fluctuations in the U.S. dollar to minimize exposure to changes of the U.S. dollar relative to the Canadian dollar.



The ETF’s relative exposure to ExxonMobil, Allergan and Wells Fargo had the most positive impact on the ETF’s returns, while Chevron, Pfizer and AT&T were negative for performance. The ETF had the highest relative exposure to ExxonMobil, Alphabet and Cisco Systems, and the lowest relative exposure to Facebook, Amazon.com and Berkshire Hathaway.

At the sector level, the ETF had the highest relative weightings in Information Technology, Health Care and Utilities, and the lowest exposure to Energy, Consumer Discretionary and Telecommunication Services.












90






U.S. Equity (CAD Hedged) ETFJune 30, 2016 19.07 0.18 – 1.11 (0.45) 0.84 – (0.19) – – (0.19) 19.42 Dec. 31, 20153 20.00† 0.44 – (1.68) 0.68 (0.56) (0.01) (0.15) – (0.19) (0.35) 19.07





U.S. Equity (CAD Hedged) ETFJune 30, 2016 8 739 450 0.44 0.44 0.08 19.26 19.42 19.41Dec. 31, 20154 3 814 200 0.44 0.44 0.02 136.86 19.07 19.39




4 From May 5, 2015.



91










United States Equities Information Technology 20.3 Financials 15.6 Health Care 15.1 Consumer Discretionary 13.2 Consumer Staples 10.0 Industrials 9.9 Energy 6.8 Utilities 4.1 Materials 2.7 Telecommunication Services 2.1 Other Net Assets 0.2


Exxon Mobil Corp. 3.6 Apple Inc. 2.7 Alphabet Inc. 2.2 Verizon Communications Inc. 2.1 Microsoft Corp. 2.0 Johnson & Johnson 1.9 JPMorgan Chase & Co. 1.8 Comcast Corp. 1.7 General Electric Co. 1.5 Pfizer Inc. 1.5 Cisco Systems Inc. 1.4 Procter & Gamble Co. 1.4 Bank of America Corp. 1.3 International Business Machines Corp. 1.3 Merck & Co Inc. 1.3 PepsiCo Inc. 1.2 Altria Group Inc. 1.2 Intel Corp. 1.1 Walt Disney Co. 1.1 Amgen Inc. 1.1 Gilead Sciences Inc. 1.1 Mastercard Inc. 1.0 Accenture PLC 0.9 3M Co. 0.9 Priceline Group Inc. 0.9 Top 25 Holdings 38.2

* The ETF invests substantially all of its assets directly in the RBC Quant U.S. Equity Leaders ETF. The above are the Top 25 holdings of the RBC Quant U.S. Equity Leaders ETF.



92


RBC ETF

RBC QUANT EAFE EQUITY LEADERS ETF

June 30, 2016








93



Investment Objective and StrategiesThe ETF seeks to provide unitholders with broad exposure to the performance of a diversified portfolio of high-quality equity securities in markets in Europe, Australasia and the Far East (EAFE) that have the potential for long-term capital growth.




The ETF’s relative exposure to HSBC Holdings, Toyota Motor and Bayer AG had the most positive impact on the ETF’s returns, while Royal Dutch Shell, Unicredit and Mitsubishi Motors were negative for performance. The ETF had the highest relative exposure to Rio Tinto Group, BHP Billiton and Heineken, and the lowest relative exposure to GlaxoSmithKline, Anheuser-Busch InBev and Commonwealth Bank Australia.

At the sector level, the ETF had the highest relative weightings in Industrials, Utilities and Consumer Discretionary, and the lowest exposure to Energy, Consumer Staples and Health Care.












94






EAFE Equity ETFJune 30, 2016 20.71 0.52 (0.17) (0.50) (1.68) (1.83) – (0.21) – – (0.21) 18.10 Dec. 31, 20153 20.00† 0.34 (0.20) 0.12 0.97 1.23 – (0.18) (0.11) (0.13) (0.42) 20.71





EAFE Equity ETFJune 30, 2016 15 384 850 0.56 0.56 0.46 103.11 18.10 18.16Dec. 31, 20154 9 318 450 0.56 0.56 0.24 271.60 20.71 20.56




4 From May 5, 2015.


Management Fees

EAFE Equity ETF 0.49%


95




International Equities Financials 23.4 Industrials 16.1 Consumer Discretionary 13.5 Consumer Staples 10.5 Health Care 7.7 Materials 7.2 Information Technology 6.1 Utilities 5.6 Telecommunication Services 5.2 Energy 4.3 Other Net Assets 0.4


Nestlé SA 1.4 Roche Holding AG 1.3 HSBC Holdings PLC 1.1 BP PLC 1.1 Total SA 0.9 Novo Nordisk A/S 0.9 Vodafone Group PLC 0.9 Toyota Motor Corp. 0.9 Diageo PLC 0.9 Reckitt Benckiser Group PLC 0.9 Siemens AG 0.8 BASF SE 0.8 National Grid PLC 0.8 SAP SE 0.8 Allianz SE 0.7 BHP Billiton Ltd. 0.7 L’Oréal SA 0.7 Deutsche Telekom AG 0.6 Rio Tinto Ltd. 0.6 Prudential PLC 0.6 ENI SpA 0.6 National Australia Bank Ltd. 0.6 KDDI Corp. 0.6 ABB Ltd. 0.6 Compass Group PLC 0.6 Top 25 Holdings 20.4








96


RBC ETF

RBC QUANT EAFE EQUITY LEADERS (CAD HEDGED) ETF

June 30, 2016








97



Investment Objective and StrategiesThe ETF seeks to provide unitholders with broad exposure, either directly or indirectly through investment in other mutual funds managed by RBC GAM or an affiliate, to the performance of a diversified portfolio of high-quality equity securities in markets in Europe, Australasia and the Far East (EAFE) that have the potential for long-term capital growth, while seeking to minimize the exposure to currency fluctuations between foreign currencies and the Canadian dollar.

The ETF intends to invest substantially all of its assets in units of the RBC Quant EAFE Equity Leaders ETF (the “underlying RBC ETF”) but may also invest directly in a portfolio of equity securities in markets in Europe, Australasia and the Far East. Portfolio securities for the underlying RBC ETF (and for the ETF, to the extent it invests directly in equity securities) will be selected using a rules-based, multi-factor investment approach designed to select companies with a high quality of earnings while filtering out slow-growth companies and securities with expensive valuations. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.




The ETF’s relative exposure to HSBC Holdings, Toyota Motor and Bayer AG had the most positive impact on the ETF’s returns, while Royal Dutch Shell, UniCredit and Mitsubishi Motors were negative for performance. The ETF had the highest relative exposure to Rio Tinto Group, BHP Billiton and Heineken, and the lowest relative exposure to GlaxoSmithKline, Anheuser-Busch Inbev and Commonwealth Bank Australia.

At the sector level, the ETF had the highest relative weightings in Industrials, Utilities and Consumer Discretionary, and the lowest exposure to Energy, Consumer Staples and Health Care.











98




99






EAFE Equity (CAD Hedged) ETFJune 30, 2016 18.38 0.24 – 0.61 (1.53) (0.68) – (0.20) – – (0.20) 16.55 Dec. 31, 20153 20.00† 0.39 – (1.96) 0.34 (1.23) – (0.16) – (0.24) (0.40) 18.38





EAFE Equity (CAD Hedged) ETFJune 30, 2016 8 276 500 0.56 0.56 0.99 2.37 16.55 16.77Dec. 31, 20154 1 838 100 0.57 0.57 0.25 21.17 18.38 18.36




4 From May 5, 2015.



100










International Equities Financials 23.4 Industrials 16.1 Consumer Discretionary 13.5 Consumer Staples 10.5 Health Care 7.7 Materials 7.2 Information Technology 6.1 Utilities 5.6 Telecommunication Services 5.2 Energy 4.3 Other Net Assets 0.4


Nestlé SA 1.4 Roche Holding AG 1.3 HSBC Holdings PLC 1.1 BP PLC 1.1 Total SA 0.9 Novo Nordisk A/S 0.9 Vodafone Group PLC 0.9 Toyota Motor Corp. 0.9 Diageo PLC 0.9 Reckitt Benckiser Group PLC 0.9 Siemens AG 0.8 BASF SE 0.8 National Grid PLC 0.8 SAP SE 0.8 Allianz SE 0.7 BHP Billiton Ltd. 0.7 L’Oréal SA 0.7 Deutsche Telekom AG 0.6 Rio Tinto Ltd. 0.6 Prudential PLC 0.6 ENI SpA 0.6 National Australia Bank Ltd. 0.6 KDDI Corp. 0.6 ABB Ltd. 0.6 Compass Group PLC 0.6 Top 25 Holdings 20.4

* The ETF invests substantially all of its assets directly in the RBC Quant EAFE Equity Leaders ETF. The above are the Top 25 holdings of the RBC Quant EAFE Equity Leaders ETF.



101


RBC ETF

RBC QUANT EMERGING MARKETS EQUITY LEADERS ETF

June 30, 2016








102



Investment Objective and StrategiesThe ETF seeks to provide unitholders with broad exposure to the performance of a diversified portfolio of high-quality emerging market equity securities that have the potential for long-term capital growth.

Portfolio securities for the ETF will be selected using a rules-based, multi-factor investment approach designed to select companies with a high quality of earnings while filtering out slow growth companies and securities with expensive valuations. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies. The portfolio holdings will be reconstituted and rebalanced on a quarterly basis. The frequency of the reconstitution and rebalancing may change without notice.













103






Emerging Markets Equity ETFJune 30, 20163 20.00† 0.41 (0.16) (0.76) 1.19 0.68 – (0.20) – – (0.20) 20.46





Emerging Markets Equity ETFJune 30, 20164 4 091 200 0.75 0.75 0.59 150.96 20.46 20.59






Management Fees

Emerging Markets Equity ETF 0.64%



104





Equities Financials 26.5 Information Technology 23.5 Consumer Staples 8.2 Energy 8.0 Telecommunication Services 7.9 Industrials 6.5 Consumer Discretionary 6.0 Materials 5.8 Utilities 3.2 Health Care 2.4 Diversified Financials 0.9 Insurance 0.3 Other Net Assets 0.8


Taiwan Semiconductor Manufacturing Co., Ltd. 3.4 Samsung Electronics Co., Ltd. 2.7 Baidu Inc. 2.2 Alibaba Group Holding Ltd. 2.0 NetEase Inc. 1.8 China Mobile Ltd. 1.8 Infosys Ltd. 1.8 Petroleo Brasileiro SA 1.5 China Petroleum & Chemical Corp. 1.5 Hon Hai Precision Industry Co., Ltd. 1.3 PetroChina Co., Ltd. 1.2 Cielo SA 1.2 China Construction Bank Corp. 1.2 CNOOC Ltd. 1.0 America Movil SAB de CV 0.9 Ambev SA 0.9 Banco Bradesco SA 0.9 Itau Unibanco Holding SA 0.9 Telekomunikasi Indonesia Persero Tbk PT 0.8 Ping An Insurance Group Co of China Ltd. 0.8 Bank of China Ltd. 0.8 SK Innovation Co., Ltd. 0.8 Tencent Holdings Ltd. 0.7 Wipro Ltd. 0.7 Emirates Telecommunications Group Co. PJSC 0.6 Top 25 Holdings 33.4


105


RBC ETF

RBC STRATEGIC GLOBAL EQUITY LEADERS ETF

June 30, 2016








106



Investment Objective and StrategiesThe ETF seeks to provide unitholders with broad exposure, either directly or indirectly through investment in other mutual funds managed by RBC GAM or an affiliate, to the performance of a diversified portfolio of high-quality global equity securities that have the potential for long-term capital growth.

The ETF invests substantially all of its assets in RBC Quant Equity Leaders ETFs (other than RBC Quant U.S. Equity Leaders (CAD Hedged) ETF and RBC Quant EAFE Equity Leaders (CAD Hedged) ETF). The ETF may also invest directly in a portfolio of global equity securities.

The portfolio asset allocation will be reconstituted and rebalanced from time to time, and no less frequently than quarterly. The frequency of the reconstitution and rebalancing may change without notice.

In order to adjust the portfolio’s asset mix in a more timely manner, the portfolio manager may use derivatives as a substitute for direct investment in a particular market, on a short-term basis, until the portfolio’s assets can be reallocated among the RBC Quant Equity Leaders ETFs.

Portfolio securities for each of the applicable RBC Quant Equity Leaders ETFs, and for the ETF, to the extent it invests directly in equity securities, will be selected using a rules-based, multi-factor investment approach designed to select high-quality global equity securities (i.e. companies with a high quality of earnings) while filtering out slow growth companies and securities with expensive valuations. Securities are weighted in accordance with a modified capitalization weighting methodology designed to reduce the dispersion of weights between larger and smaller capitalization companies.













107






Strat. Global Equity ETFJune 30, 20163 20.00† 0.22 (0.02) 0.12 0.71 1.03 – (0.20) – – (0.20) 20.79





Strat. Global Equity ETFJune 30, 20164 2 079 100 0.54 0.54 0.12 18.61 20.79 20.43








108





Equities Financials 25.0 Information Technology 11.8 Industrials 10.3 Consumer Discretionary 10.2 Energy 9.9 Consumer Staples 8.1 Health Care 7.6 Materials 7.5 Telecommunication Services 4.5 Utilities 4.4 Diversified Financials 0.1 Other Net Assets 0.6


RBC Quant US Equity Leaders ETF 36.1 RBC Quant Canadian Equity Leaders ETF 32.4 RBC Quant EAFE Equity Leaders ETF 21.8 RBC Quant Emerging Markets Equity Leaders ETF 9.4 Cash and Cash Equivalents 0.3 Total 100.0




109

The accompanying financial statements have been prepared by RBC Global Asset Management Inc. (“RBC GAM”) as manager of the RBC ETFs

(the “ETFs”) and approved by the Board of Directors of RBC GAM. We are responsible for the information contained within the financial statements.

We have maintained appropriate procedures and controls to ensure that timely and reliable financial information is produced. The financial

statements have been prepared in compliance with International Financial Reporting Standards (“IFRS”) (and they include certain amounts

that are based on estimates and judgments). The significant accounting policies, which we believe are appropriate for the ETFs, are described in

Note 3 to the financial statements.

Damon G. Williams, FSA, FCIA, CFA Frank Lippa, CPA, CAChief Executive Officer Chief Financial Officer and Chief Operating OfficerRBC Global Asset Management Inc. RBC Global Asset Management Inc.

August 10, 2016

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

Unaudited Interim Financial Statements

The accompanying interim financial statements have not been reviewed by the external auditors of the ETFs. The external auditors will be

auditing the annual financial statements of the ETFs in accordance with Canadian generally accepted auditing standards.

110

SCHEDULE OF INVESTMENT PORTFOLIO (unaudited) (in $000s)

2016 INTERIM FINANCIAL STATEMENTS

June 30, 2016

The accompanying notes are an integral part of the financial statements.


Number Fair % of Net of Units Security Cost Value Assets

ETF UNITS 1 746 563 RBC Target 2017 Corporate Bond Index ETF* $ 34 607 $ 33 717 1 714 668 RBC Target 2018 Corporate Bond Index ETF* 34 255 33 743 1 679 323 RBC Target 2019 Corporate Bond Index ETF* 34 148 33 723 1 632 685 RBC Target 2020 Corporate Bond Index ETF* 33 993 33 742 1 644 590 RBC Target 2021 Corporate Bond Index ETF* 33 289 33 743

TOTAL ETF UNITS 170 292 168 668 100.0Less: Transaction costs (22) – –TOTAL INVESTMENTS $ 170 270 168 668 100.0OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS – –NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 168 668 100.0

* Investment in related party (see note 8 in the generic notes).

111

FINANCIAL STATEMENTS (unaudited)

The accompanying notes are an integral part of these financial statements.


Statements of Financial Position (unaudited) (in $000s except per unit amounts)

(see note 2 in the generic notes)June 30

2016December 31

2015

ASSETSInvestments at fair value $ 168 668 $ 148 920 Cash – 4 Due from investment dealers – 162 Dividends receivable, interest accrued and other assets – 426 TOTAL ASSETS 168 668 149 512 LIABILITIESDistributions payable – 589 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS – 589 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 168 668 $ 148 923

Investments at cost $ 170 270 $ 150 578

NAV PER UNIT $ 19.73 $ 19.73

Statements of Comprehensive Income (unaudited) (in $000s except per unit amounts)

For the periods ended June 30 (see note 2 in the generic notes) 2016 2015

INCOME (see note 3 in the generic notes)Interest for distribution purposes $ 2 647 $ 1 721 Securities lending revenue (see note 7 in the generic notes) 6 10Net realized gain (loss) on investments (46) (129)Change in unrealized gain (loss) on investments 56 76 TOTAL INCOME (LOSS) 2 663 1 678 EXPENSES (see notes – ETF Specific Information)Transaction costs 1 16 TOTAL EXPENSES 1 16 INCREASE (DECREASE) IN NAV $ 2 662 $ 1 662 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.33 $ 0.33

112




Statements of Cash Flow (unaudited) (in $000s)

For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 2 662 $ 1 662ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 46 129Change in unrealized loss (gain) on investments (56) (76)(Increase) decrease in accrued receivables 426 175Increase (decrease) in accrued payables – –Cost of investments purchased (24 411) (77 583)Proceeds on sales of investments 4 835 17 310NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (16 498) (58 383)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 23 681 64 350Cash paid on redemption of redeemable units (3 938) (4 044)Distributions paid to holders of redeemable units (3 249) (1 925)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 16 494 $ 58 381Net increase (decrease) in cash for the period (4) (2)Cash (bank overdraft), beginning of period 4 3CASH (BANK OVERDRAFT), END OF PERIOD $ – $ 1

Interest received (paid) $ 2 647 $ 1 896Dividends received, net of withholding taxes $ – $ –

113




Statements of Changes in NAV (unaudited) (in $000s)

For the periods ended June 30 (see note 2 in the generic notes)

Total2016 2015

NAV AT BEGINNING OF PERIOD $ 148 923 $ 72 016 INCREASE (DECREASE) IN NAV 2 662 1 662 Early redemption fees – –Proceeds from redeemable units issued 23 681 61 352 Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units (3 938) (4 044)NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 19 743 57 308 Distributions from net income (2 660) (1 718)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (2 660) (1 718)NET INCREASE (DECREASE) IN NAV 19 745 57 252 NAV AT END OF PERIOD $ 168 668 $ 129 268

114

NOTES TO FINANCIAL STATEMENTS – ETF SPECIFIC INFORMATION (unaudited)

Please see the generic notes at the back of the financial statements.

June 30, 2016


General information (see note 1 in the generic notes)

The investment objective of the ETF is to provide unitholders

with exposure to the performance of a diversified portfolio

of Canadian corporate bonds, divided (“laddered”) into five

groupings with staggered maturities from one to five years,

which will provide regular income while preserving capital.

Financial instrument risk and capital management (see note 4 in the generic notes)

Credit risk (%)

The table below summarizes the ETF’s credit risk exposure

grouped by credit ratings as at:

RatingJune 30

2016December 31

2015

AAA 1.0 1.1AA 32.3 31.6A 42.4 44.3BBB 24.3 23.0Total 100.0 100.0

Concentration risk (%)

The table below summarizes the ETF’s investment portfolio

(after consideration of derivative products, if any) as at:

Investment mixJune 30

2016December 31

2015

Corporate Bonds Financials 65.7 65.3 Communication 11.2 11.2 Infrastructure 8.9 9.0 Energy 6.8 7.4 Industrials 4.8 4.7 Real Estate 2.6 1.4 Other Net Assets – 1.0 Total 100.0 100.0

Interest rate risk (%)

The table below summarizes the ETF’s exposure to interest

rate risk by remaining term to maturity as at:

Term to maturityJune 30

2016December 31

2015

Less than 1 year 6.4 –1 – 5 years 93.6 80.05 – 10 years – 20.0> 10 years – –Total 100.0 100.0

As at June 30, 2016, had prevailing interest rates risen or

lowered by 1%, with all other factors kept constant, the ETF’s

net assets may have decreased or increased, respectively, by

approximately 2.9% (December 31, 2015 – 3.3%). In practice,

actual results could differ from this sensitivity analysis and the

difference could be material.

Fair value hierarchy ($000s except % amounts) (see note 3 in the generic notes)

The following is a summary of the inputs used as of

June 30, 2016 and December 31, 2015.

June 30, 2016 Level 1 Level 2 Level 3 Total

ETF units 168 668 – – 168 668 Total financial instruments 168 668 – – 168 668 % of total portfolio 100.0 – – 100.0

December 31, 2015 Level 1 Level 2 Level 3 Total


For the periods ended June 30, 2016 and December 31, 2015,

there were no transfers of financial instruments between

Level 1, Level 2 and Level 3.

Management fees (see note 8 in the generic notes)

A management fee is not charged directly to the ETF as this

ETF invests in the units of other RBC ETFs.

Underlying mutual fund ownership interest (%)

The table below summarizes the ETF’s interest in the

underlying mutual funds as a percentage of NAV, and the

ETF’s ownership interest as a percentage of the net assets of

the underlying funds (“Ownership”). All underlying funds are

established and conduct business in Canada, and have an

associate relationship to the ETF.

June 30 2016

December 31 2015

NAV Ownership NAV Ownership

RBC Target 2017 Corporate Bond Index ETF 20.0 36.8 20.0 38.6RBC Target 2018 Corporate Bond Index ETF 20.0 36.9 20.0 39.6RBC Target 2019 Corporate Bond Index ETF 20.0 31.4 20.0 32.9RBC Target 2020 Corporate Bond Index ETF 20.0 44.7 20.0 50.9RBC Target 2021 Corporate Bond Index ETF 20.0 51.4 20.0 64.1

115



June 30, 2016

Taxes ($000s) (see note 6 in the generic notes)

The non-capital and capital losses as at December 31, 2015

for the ETF were approximately:

Capital losses 792Non-capital losses –

Unitholders’ equity (000s) (see note 5 in the generic notes)

The NAV per unit is arrived at by dividing the net asset

value of the ETF by the total number of units outstanding

at the end of each trading day of the ETF. The ETF’s capital

is managed in accordance with the investment objective as

outlined in the Prospectus.


Opening units 7 550 3 600 Issued number of units 1 200 3 050 Reinvested number of units – –Redeemed number of units (200) (200)Ending number of units 8 550 6 450

Transaction costs ($000s except %)

Transaction costs, including brokerage commissions, in

consideration of portfolio transactions for the periods ended:

June 30 2016

June 30 2015

$ % $ %

Total transaction costs 1 100 16 100Related-party brokerage commissions* 1 100 16 100Commission arrangements† – – – –

* See note 8 in the generic notes.† Commission arrangements are part of commission amounts paid to dealers. The ETF uses

commission arrangements (formerly known as “soft dollars”) for research and/or order execution goods and services.


Securities lending revenue ($000s except %) (see note 7 in the generic notes)

Fair value of securities on loan and collateral received as at:

June 30 2016

June 30 2015

Fair value of securities loaned 409 247Fair value of collateral received 417 252

The table below provides a reconciliation of the gross revenue

generated from the securities lending transactions of the ETF

to the securities lending revenue disclosed in the Statements of

Comprehensive Income.

June 30 2016

June 30 2015

$ % $ %

Gross revenue 9 100 16 100RBC IS (paid) (3) (35) (6) (35)Tax withheld – – – –ETF revenue 6 65 10 65

116



June 30, 2016



Par Value Coupon Fair % of Net (000s) Security Rate % Maturity Cost Value Assets

CANADIAN BONDSFEDERAL & PROVINCIAL 2 604 Canada Housing Trust No. 1 2.050 15-Jun-2018 $ 2 674 $ 2 672 2 653 Canadian Government Bond 1.500 01-Sep-2017 2 686 2 683 1 204 Province of British Columbia 4.100 18-Dec-2019 1 333 1 331 1 209 Province of Ontario Canada 4.200 02-Jun-2020 1 351 1 352 2 386 Province of Ontario Canada 4.000 02-Jun-2021 2 691 2 701 1 209 Province of Quebec Canada 4.500 01-Dec-2019 1 351 1 349 1 178 Province of Quebec Canada 4.500 01-Dec-2020 1 345 1 347

TOTAL CANADIAN BONDS 13 431 13 435 29.9


ETF UNITS 324 091 RBC Target 2017 Corporate Bond Index ETF* $ 6 275 $ 6 256 318 131 RBC Target 2018 Corporate Bond Index ETF* 6 268 6 260 311 665 RBC Target 2019 Corporate Bond Index ETF* 6 257 6 259 303 010 RBC Target 2020 Corporate Bond Index ETF* 6 244 6 262 305 272 RBC Target 2021 Corporate Bond Index ETF* 6 226 6 263

TOTAL ETF UNITS 31 270 31 300 69.8TOTAL INVESTMENTS $ 44 701 44 735 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 129 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 44 864 100.0


117




Statement of Financial Position (unaudited) (in $000s except per unit amounts)


2016

ASSETSInvestments at fair value $ 44 735 Cash 65 Subscriptions receivable 12 961 Dividends receivable, interest accrued and other assets 42 TOTAL ASSETS 57 803 LIABILITIESDue to investment dealers 12 938 Accounts payable and accrued expenses 1 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 12 939 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 44 864

Investments at cost $ 44 701

NAV PER UNIT $ 19.94

Statement of Comprehensive Income (unaudited) (in $000s except per unit amounts)

For the period ended June 30 (see note 2 in the generic notes) 2016

INCOME (see note 3 in the generic notes)Interest for distribution purposes $ 216 Change in unrealized gain (loss) on investments 34 TOTAL INCOME (LOSS) 250 EXPENSES (see notes – ETF Specific Information)Management fees 3 TOTAL EXPENSES 3 INCREASE (DECREASE) IN NAV $ 247 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.37

118




Statement of Cash Flow (unaudited) (in $000s)

For the period ended June 30 (see note 2 in the generic notes) 2016CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 247 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes –Net realized loss (gain) on investments –Change in unrealized loss (gain) on investments (34)(Increase) decrease in accrued receivables (42)Increase (decrease) in accrued payables 1 Cost of investments purchased (31 821)Proceeds on sales of investments 58 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (31 591)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 31 871 Cash paid on redemption of redeemable units –Distributions paid to holders of redeemable units (215)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 31 656 Net increase (decrease) in cash for the period 65 Cash (bank overdraft), beginning of period –CASH (BANK OVERDRAFT), END OF PERIOD $ 65

Interest received (paid) $ 174Dividends received, net of withholding taxes $ –

119




Statement of Changes in NAV (unaudited) (in $000s)

For the period ended June 30 (see note 2 in the generic notes)

Total2016

NAV AT BEGINNING OF PERIOD $ –INCREASE (DECREASE) IN NAV 247 Early redemption fees – Proceeds from redeemable units issued 44 832 Reinvestments of distributions to holders of redeemable units – Redemption of redeemable units – NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 44 832 Distributions from net income (215)Distributions from net gains – Distributions from capital – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (215)NET INCREASE (DECREASE) IN NAV 44 864 NAV AT END OF PERIOD $ 44 864

120



June 30, 2016




with exposure primarily to the performance of a diversified

portfolio of Canadian corporate and government bonds,

divided (“laddered”) into five groupings with staggered

maturities from one to five years, which will provide regular

income while preserving capital.

The ETF was started in January 2016.


Credit risk (%)



RatingJune 30

2016

AAA 15.0AA 38.0A 29.9BBB 17.1Total 100.0





2016

Corporate Bonds Financials 45.7 Communication 7.7 Infrastructure 6.1 Energy 4.6 Industrials 3.3 Real Estate 1.7Federal and Provincial Bonds 29.9 Other Net Assets 1.0Total 100.0





2016

Less than 1 year –1 – 5 years 100.05 – 10 years –> 10 years – Total 100.0




approximately 2.9%. In practice, actual results could differ from

this sensitivity analysis and the difference could be material.



June 30, 2016.


ETF units 24 348 – – 24 348 Fixed-income and debt securities – 10 444 – 10 444 Total financial instruments 24 348 10 444 – 34 792 % of total portfolio 70.0 30.0 – 100.0

For the period ended June 30, 2016, there were no transfers of

financial instruments between Level 1, Level 2 and Level 3.


RBC GAM is the manager, trustee and portfolio manager of

the ETF. A management fee is charged indirectly and directly

to the ETF: indirectly as this ETF invests in the units of other

RBC ETFs and the other RBC ETFs pay management fees;

and directly for other portfolio manager activities. The total

management fee will not exceed 0.22%, before GST/HST, of

the daily net asset value of the ETF.








June 30 2016

NAV Ownership

RBC Target 2017 Corporate Bond Index ETF 14.0 6.8RBC Target 2018 Corporate Bond Index ETF 14.0 6.8RBC Target 2019 Corporate Bond Index ETF 14.0 5.8RBC Target 2020 Corporate Bond Index ETF 14.0 8.3RBC Target 2021 Corporate Bond Index ETF 14.0 9.5

121



June 30, 2016








Opening units –Issued number of units 2 250 Reinvested number of units –Redeemed number of units –Ending number of units 2 250



June 30 2016




to the securities lending revenue disclosed in the Statement of


June 30 2016

$ %

Gross revenue – –RBC IS (paid) – –Tax withheld – –ETF revenue – –


122



June 30, 2016




SHORT-TERM INVESTMENTS 28 749 Canadian Treasury Bill 17-Nov-2016 $ 28 660 $ 28 696

TOTAL SHORT-TERM INVESTMENTS 28 660 28 696 67.7CANADIAN BONDSCORPORATE 693 Brookfield Renewable Energy Partners ULC 6.132 30-Nov-2016 758 706 1 084 Daimler Canada Finance Inc. 3.280 15-Sep-2016 1 119 1 089 550 Emera Inc. 2.960 13-Dec-2016 563 554 693 Enbridge Inc. 5.000 09-Aug-2016 743 695 1 152 Ford Credit Canada Ltd. 2.634 21-Nov-2016 1 164 1 157 1 155 GE Capital Canada Funding Co. 3.350 23-Nov-2016 1 196 1 165 781 George Weston Ltd. 3.780 25-Oct-2016 811 787 1 243 The Manufacturers Life Insurance Co.*, FRN 4.210 18-Nov-2021 1 300 1 254 1 774 National Bank of Canada 2.702 15-Dec-2016 1 813 1 788 3 410 The Toronto-Dominion Bank*, FRN 4.779 14-Dec-2105 3 638 3 453 924 TransCanada PipeLines Ltd. 4.650 03-Oct-2016 990 932

TOTAL CANADIAN BONDS 14 095 13 580 32.0TOTAL INVESTMENTS $ 42 755 42 276 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 110 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 42 386 100.0

* Interest rate risk (see note 4 in the generic notes).

123






2016December 31

2015

ASSETSInvestments at fair value $ 42 276 $ 59 935 Cash 91 468 Due from investment dealers 2 833 –Dividends receivable, interest accrued and other assets 76 619 TOTAL ASSETS 45 276 61 022 LIABILITIESDue to investment dealers 2 880 –Distributions payable – 310 Accounts payable and accrued expenses 10 17 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 2 890 327 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 42 386 $ 60 695


NAV PER UNIT $ 18.84 $ 18.97



INCOME (see note 3 in the generic notes) Interest for distribution purposes $ 677 $ 1 822 Securities lending revenue (see note 7 in the generic notes) 3 3 Net realized gain (loss) on investments (2 011) (82)Change in unrealized gain (loss) on investments 1 599 (654)TOTAL INCOME (LOSS) 268 1 089 EXPENSES (see notes – ETF Specific Information)Management fees 62 114 Independent Review Committee costs – 1 GST/HST 6 10 TOTAL EXPENSES 68 125 INCREASE (DECREASE) IN NAV $ 200 $ 964 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.08 $ 0.20

124




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 200 $ 964 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONS Interest for distribution purposes – –Net realized loss (gain) on investments 2 011 82 Change in unrealized loss (gain) on investments (1 599) 654 (Increase) decrease in accrued receivables 543 (161)Increase (decrease) in accrued payables (7) 4 Cost of investments purchased (36 579) (22 521)Proceeds on sales of investments 53 873 5 038 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 18 442 (15 940)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units – 22 335 Cash paid on redemption of redeemable units (17 954) (4 853)Distributions paid to holders of redeemable units (865) (1 778)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ (18 819) $ 15 704 Net increase (decrease) in cash for the period (377) (236)Cash (bank overdraft), beginning of period 468 264 CASH (BANK OVERDRAFT), END OF PERIOD $ 91 $ 28

Interest received (paid) $ 1 220 $ 1 661 Dividends received, net of withholding taxes $ – $ –


125






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 60 695 $ 80 514 INCREASE (DECREASE) IN NAV 200 964 Early redemption fees – –Proceeds from redeemable units issued – 22 335 Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units (17 954) (4 853)NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS (17 954) 17 482 Distributions from net income (555) (1 554)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (555) (1 554)NET INCREASE (DECREASE) IN NAV (18 309) 16 892 NAV AT END OF PERIOD $ 42 386 $ 97 406

126



June 30, 2016



The investment objective of the ETF is to provide income for

a limited period of time ending on its termination date by

replicating, to the extent possible, the investment results that

correspond generally to the performance, before fees and

expenses, of the FTSE TMX Canada 2016 Maturity Corporate

Bond Index*.


Credit risk (%)



RatingJune 30

2016December 31

2015

AAA 67.9 –AA 4.2 32.6A 18.7 43.6BBB 9.2 23.8Total 100.0 100.0





2016December 31

2015

Corporate Bonds Financials 23.5 69.0 Energy 5.5 9.0 Industrials 1.9 3.2 Infrastructure 1.3 8.0 Communication – 9.5 Other Net Assets 67.8 1.3 Total 100.0 100.0





2016December 31

2015

Less than 1 year 100.0 100.01 – 5 years – –5 – 10 years – –> 10 years – –Total 100.0 100.0











Fixed-income and debt securities – 42 276 – 42 276 Total financial instruments – 42 276 – 42 276 % of total portfolio – 100.0 – 100.0







RBC GAM is paid a management fee per annum of the NAV by

the ETF as compensation for its services.

The management fee of the ETF is calculated at the following

annual percentage, before GST/HST, of the daily net asset

value of the ETF.

Until December 31, 2015 0.25%Effective January 1, 2016 0.20%




Capital losses 1 307Non-capital losses –

127



June 30, 2016









Opening units 3 200 4 150 Issued number of units – 1 150 Reinvested number of units – –Redeemed number of units (950) (250)Ending number of units 2 250 5 050



June 30 2016

June 30 2015

Fair value of securities loaned 12 640 2 333Fair value of collateral received 12 893 2 380





June 30 2016

June 30 2015

$ % $ %


Subsequent event

The ETF will mature on November 18, 2016. Unitholders will

receive cash on maturity.

128



June 30, 2016




CANADIAN BONDSCORPORATE 1 510 407 International Inc. 3.870 24-Nov-2017 $ 1 592 $ 1 560 1 506 Alimentation Couche-Tard Inc. 2.861 01-Nov-2017 1 530 1 530 2 413 Bank of Montreal 5.450 17-Jul-2017 2 644 2 520 1 877 Bank of Montreal 4.550 01-Aug-2017 2 012 1 945 4 397 Bank of Montreal 2.240 11-Dec-2017 4 443 4 463 5 228 Bank of Nova Scotia 4.100 08-Jun-2017 5 533 5 374 3 547 Bank of Nova Scotia*, FRN 2.898 03-Aug-2022 3 625 3 588 3 455 Bell Canada 5.000 15-Feb-2017 3 686 3 532 1 762 Bell Canada 4.370 13-Sep-2017 1 860 1 822 3 016 Caisse Centrale Desjardins 3.502 05-Oct-2017 3 146 3 101 4 675 Canadian Imperial Bank of Commerce 3.950 14-Jul-2017 4 938 4 811 4 179 Canadian Imperial Bank of Commerce 2.350 18-Oct-2017 4 249 4 242 2 513 Ford Credit Canada Ltd. 4.875 08-Feb-2017 2 650 2 560 2 262 Greater Toronto Airports Authority 4.850 01-Jun-2017 2 442 2 340 5 029 HSBC Bank Canada 3.558 04-Oct-2017 5 247 5 162 2 011 HSBC Bank Canada*, FRN 4.800 10-Apr-2022 2 131 2 054 3 014 Hydro One Inc. 5.180 18-Oct-2017 3 314 3 167 2 513 Manufacturers Life Insurance Co. *FRN 4.165 01-Jun-2022 2 627 2 567 3 046 National Bank of Canada 2.689 21-Aug-2017 3 102 3 098 1 509 National Bank of Canada*, FRN 3.261 11-Apr-2022 1 546 1 525 2 311 Rogers Communications Inc. 3.000 06-Jun-2017 2 367 2 346 6 534 Royal Bank of Canada† 3.660 25-Jan-2017 6 798 6 631 1 961 Shaw Communications Inc. 5.700 02-Mar-2017 2 115 2 014 3 546 Sun Life Financial Inc.*, FRN 4.380 02-Mar-2022 3 702 3 605 3 416 TELUS Corp. 4.950 15-Mar-2017 3 651 3 500 1 257 The Toronto-Dominion Bank*, FRN 5.763 18-Dec-2106 6 662 6 361 6 033 Toronto Hydro Corp. 5.150 14-Nov-2017 1 382 1 323 1 507 TransCanada PipeLines Ltd. 5.100 11-Jan-2017 1 616 1 536 2 263 VW Credit Canada Inc. 2.450 14-Nov-2017 2 289 2 284

TOTAL INVESTMENTS $ 92 899 90 561 98.8OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1 135 1.2NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 91 696 100.0

* Interest rate risk (see note 4 in the generic notes).† Investment in related party (see note 8 in the generic notes).

129






2016December 31

2015

ASSETSInvestments at fair value $ 90 561 $ 76 181 Cash 208 380 Subscriptions receivable 965 –Dividends receivable, interest accrued and other assets 950 851 TOTAL ASSETS 92 684 77 412 LIABILITIESDue to investment dealers 964 –Distributions payable – 261 Accounts payable and accrued expenses 24 20 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 988 281 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 91 696 $ 77 131


NAV PER UNIT $ 19.30 $ 19.53



INCOME (see note 3 in the generic notes)Interest for distribution purposes $ 1 642 $ 1 235 Securities lending revenue (see note 7 in the generic notes) 1 1 Net realized gain (loss) on investments (257) (41)Change in unrealized gain (loss) on investments (634) (43)TOTAL INCOME (LOSS) 752 1 152 EXPENSES (see notes – ETF Specific Information)Management fees 104 80 Independent Review Committee costs 2 1 GST/HST 10 7 TOTAL EXPENSES 116 88 INCREASE (DECREASE) IN NAV $ 636 $ 1 064 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.15 $ 0.33

130




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 636 $ 1 064 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONS Interest for distribution purposes – –Net realized loss (gain) on investments 257 41 Change in unrealized loss (gain) on investments 634 43 (Increase) decrease in accrued receivables (99) (199)Increase (decrease) in accrued payables 4 4 Cost of investments purchased (24 247) (19 701)Proceeds on sales of investments 9 940 922 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (12 875) (17 826)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 14 551 18 902 Cash paid on redemption of redeemable units – – Distributions paid to holders of redeemable units (1 848) (1 199)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 12 703 $ 17 703 Net increase (decrease) in cash for the period (172) (123)Cash (bank overdraft), beginning of period 380 265 CASH (BANK OVERDRAFT), END OF PERIOD $ 208 $ 142



131






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 77 131 $ 54 495 INCREASE (DECREASE) IN NAV 636 1 064 Early redemption fees – –Proceeds from redeemable units issued 15 516 18 902 Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units – – NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 15 516 18 902 Distributions from net income (1 587) (1 070)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 587) (1 070)NET INCREASE (DECREASE) IN NAV 14 565 18 896 NAV AT END OF PERIOD $ 91 696 $ 73 391

132



June 30, 2016








Bond Index*.


Credit risk (%)



RatingJune 30

2016December 31

2015

AA 36.6 35.6A 38.4 42.7BBB 25.0 21.7Total 100.0 100.0





2016December 31

2015

Corporate Bonds Financials 71.9 72.8 Communication 14.4 14.0 Infrastructure 9.1 8.8 Energy 1.7 1.6 Industrials 1.7 1.6 Other Net Assets 1.2 1.2 Total 100.0 100.0





2016December 31

2015

Less than 1 year 32.2 –1 – 5 years 67.8 100.05 – 10 years – –> 10 years – –Total 100.0 100.0





actual results could differ from this sensitivity analysis and

the difference could be material.
















value of the ETF.






133



June 30, 2016









Opening units 3 950 2 750 Issued number of units 800 950 Reinvested number of units – –Redeemed number of units – –Ending number of units 4 750 3 700



June 30 2016

June 30 2015

Fair value of securities loaned 4 609 343Fair value of collateral received 4 701 349





June 30 2016

June 30 2015

$ % $ %


Investments by other related investment funds (%) (see note 8 in the generic notes)

The table below summarizes, as a percentage, the net assets

of the ETF owned by other related investment funds as at:

June 30 2016

December 31 2015

RBC 1-5 Year Laddered Canadian Bond ETF 6.8 –RBC 1-5 Year Laddered Corporate Bond ETF 36.8 38.6Total 43.6 38.6

134



June 30, 2016




CANADIAN BONDSCORPORATE 2 915 American Express Canada Credit Corp. 2.310 29-Mar-2018 $ 2 948 $ 2 965 832 Aon Finance NS 1 ULC 4.760 08-Mar-2018 891 869 4 211 Bank of Montreal 3.210 13-Sep-2018 4 394 4 388 3 673 Bank of Montreal*, FRN 6.170 28-Mar-2023 4 146 3 946 4 059 Bank of Nova Scotia 2.242 22-Mar-2018 4 103 4 126 3 809 Bank of Nova Scotia 2.750 13-Aug-2018 3 912 3 920 2 538 bcIMC Realty Corp. 2.790 02-Aug-2018 2 611 2 612 2 538 Bell Canada 4.400 16-Mar-2018 2 718 2 659 1 014 Bell Canada 4.880 26-Apr-2018 1 097 1 073 2 029 Bell Canada 3.500 10-Sep-2018 2 117 2 113 2 274 Canadian Imperial Bank of Commerce*, FRN 6.000 06-Jun-2023 2 568 2 454 2 033 Dollarama Inc. 3.095 05-Nov-2018 2 081 2 094 1 015 EPCOR Utilities Inc. 5.800 31-Jan-2018 1 137 1 086 1 519 Enbridge Pipelines Inc. 6.620 19-Nov-2018 1 788 1 691 759 Enmax Corp. 6.150 19-Jun-2018 851 817 887 Finning International Inc. 6.020 01-Jun-2018 1 001 953 2 538 Ford Credit Canada Ltd. 3.700 02-Aug-2018 2 645 2 628 2 534 Greater Toronto Airports Authority 5.260 17-Apr-2018 2 826 2 715 2 539 Great-West Lifeco Finance Delaware LP II 7.127 26-Jun-2068 2 936 2 763 5 075 HSBC Bank Canada 2.078 26-Nov-2018 5 106 5 121 3 805 Hydro One Inc. 2.780 09-Oct-2018 3 932 3 932 1 947 Manulife Financial Corp. 5.505 26-Jun-2018 2 158 2 088 3 805 National Bank of Canada 2.794 09-Aug-2018 3 912 3 919 4 443 Royal Bank of Canada† 3.770 30-Mar-2018 4 731 4 641 3 727 Royal Bank of Canada† 2.890 11-Oct-2018 3 844 3 856 2 538 Sobeys Inc. 3.520 08-Aug-2018 2 625 2 601 1 425 Sun Life Financial Inc.*, FRN 5.590 30-Jan-2023 1 554 1 504 1 745 Suncor Energy Inc. 5.800 22-May-2018 1 957 1 880 2 882 Toronto-Dominion Bank*, FRN 5.828 09-Jul-2023 3 247 3 112 2 533 Toyota Credit Canada Inc. 2.750 18-Jul-2018 2 601 2 603 2 522 Toyota Credit Canada Inc. 2.800 21-Nov-2018 2 594 2 604 1 653 VW Credit Canada Inc. 2.800 20-Aug-2018 1 688 1 682 5 077 Wells Fargo Canada Corp. 2.780 15-Nov-2018 5 210 5 248

TOTAL INVESTMENTS $ 91 929 90 663 99.1OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 844 0.9NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 91 507 100.0


135






2016December 31

2015

ASSETSInvestments at fair value $ 90 663 $ 74 470 Cash 9 304 Due from investment dealers 20 –Dividends receivable, interest accrued and other assets 840 737 TOTAL ASSETS 91 532 75 511 LIABILITIESDistributions payable – 213 Accounts payable and accrued expenses 25 19 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 25 232 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 91 507 $ 75 279


NAV PER UNIT $ 19.68 $ 19.81



INCOME (see note 3 in the generic notes) Interest for distribution purposes $ 1 504 $ 1 026 Securities lending revenue (see note 7 in the generic notes) 5 1 Net realized gain (loss) on investments (97) 28 Change in unrealized gain (loss) on investments (469) 332 TOTAL INCOME (LOSS) 943 1 387 EXPENSES (see notes – ETF Specific Information)Management fees 103 71 Independent Review Committee costs 2 1 GST/HST 10 6 TOTAL EXPENSES 115 78 INCREASE (DECREASE) IN NAV $ 828 $ 1 309 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.20 $ 0.46

136




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 828 $ 1 309 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONS Interest for distribution purposes – –Net realized loss (gain) on investments 97 (28)Change in unrealized loss (gain) on investments 469 (332)(Increase) decrease in accrued receivables (103) (182)Increase (decrease) in accrued payables 6 5 Cost of investments purchased (23 996) (24 265)Proceeds on sales of investments 7 217 2 206 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (15 482) (21 287)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 16 761 23 196 Cash paid on redemption of redeemable units – (1 012)Distributions paid to holders of redeemable units (1 574) (1 011)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 15 187 $ 21 173 Net increase (decrease) in cash for the period (295) (114)Cash (bank overdraft), beginning of period 304 136 CASH (BANK OVERDRAFT), END OF PERIOD $ 9 $ 22

Interest received (paid) $ 1 401 $ 844 Dividends received, net of withholding taxes $ – $ –


137






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 75 279 $ 45 850 INCREASE (DECREASE) IN NAV 828 1 309 Early redemption fees – –Proceeds from redeemable units issued 16 761 22 201 Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units – (1 012)NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 16 761 21 189 Distributions from net income (1 361) (923)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 361) (923)NET INCREASE (DECREASE) IN NAV 16 228 21 575 NAV AT END OF PERIOD $ 91 507 $ 67 425

138



June 30, 2016








Bond Index*.


Credit risk (%)



RatingJune 30

2016December 31

2015

AAA – 5.3AA 31.4 31.8A 43.4 43.1BBB 25.2 19.8Total 100.0 100.0





2016December 31

2015

Corporate Bonds Financials 70.4 69.3 Infrastructure 9.3 9.6 Communication 6.4 6.6 Industrials 6.2 6.4 Energy 3.9 4.1 Real Estate 2.9 2.9 Other Net Assets 0.9 1.1 Total 100.0 100.0





2016December 31

2015

Less than 1 year – –1 – 5 years 100.0 100.05 – 10 years – –> 10 years – –Total 100.0 100.0






















value of the ETF.






139



June 30, 2016









Opening units 3 800 2 300 Issued number of units 850 1 100 Reinvested number of units – –Redeemed number of units – (50)Ending number of units 4 650 3 350



June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %





June 30 2016

December 31 2015


140



June 30, 2016




CANADIAN BONDSCORPORATE 10 139 Bank of Nova Scotia*, FRN 3.036 18-Oct-2024 $ 10 392 $ 10 446 5 831 Brookfield Asset Management Inc. 3.950 09-Apr-2019 6 115 6 129 2 427 Cameco Corp. 5.670 02-Sep-2019 2 713 2 649 3 119 Canadian Imperial Bank of Commerce 2.350 24-Jun-2019 3 210 3 209 2 915 CU Inc. 6.800 13-Aug-2019 3 515 3 390 3 890 Enbridge Inc. 4.770 02-Sep-2019 4 257 4 192 1 789 Enbridge Pipelines Inc. 4.490 12-Nov-2019 1 975 1 945 1 937 Fairfax Financial Holdings Ltd. 7.500 19-Aug-2019 2 232 2 179 5 831 Greater Toronto Airports Authority 5.960 20-Nov-2019 6 890 6 741 3 532 IGM Financial Inc. 7.350 08-Apr-2019 4 213 4 045 2 294 Intact Financial Corp. 5.410 03-Sep-2019 2 580 2 536 4 431 Manulife Financial Corp. 7.768 08-Apr-2019 5 342 5 127 3 400 NAV Canada 5.304 17-Apr-2019 3 869 3 778 9 721 National Bank of Canada 2.404 28-Oct-2019 9 881 10 005 1 309 Rogers Communications Inc. 5.380 04-Nov-2019 1 475 1 460 5 261 Royal Bank of Canada† 2.980 07-May-2019 5 457 5 494 4 859 Royal Bank of Canada*†, FRN 2.990 06-Dec-2024 4 965 5 005 6 075 Shaw Communications Inc. 5.650 01-Oct-2019 6 831 6 721 1 456 SNC-Lavalin Group Inc. 6.190 03-Jul-2019 1 661 1 615 2 816 Sun Life Financial Inc. 5.700 02-Jul-2019 3 205 3 142 725 TELUS Corp. 5.050 04-Dec-2019 810 800 2 425 Toronto Hydro Corp. 4.490 12-Nov-2019 2 691 2 670 1 428 TransAlta Corp. 6.400 18-Nov-2019 1 533 1 437 10 177 Wells Fargo Canada Corp. 2.944 25-Jul-2019 10 516 10 637 871 Westcoast Energy Inc. 5.600 16-Jan-2019 976 947

TOTAL INVESTMENTS $ 107 304 106 299 98.9OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1 137 1.1NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 107 436 100.0


141






2016December 31

2015

ASSETSInvestments at fair value $ 106 299 $ 89 682 Cash 8 89 Due from investment dealers – 220 Dividends receivable, interest accrued and other assets 1 157 1 004 TOTAL ASSETS 107 464 90 995 LIABILITIESDistributions payable – 306 Accounts payable and accrued expenses 28 23 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 28 329 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 107 436 $ 90 666


NAV PER UNIT $ 20.08 $ 20.15



INCOME (see note 3 in the generic notes)Interest for distribution purposes $ 2 040 $ 1 435 Securities lending revenue (see note 7 in the generic notes) 1 4 Net realized gain (loss) on investments (74) 40 Change in unrealized gain (loss) on investments (254) 668 TOTAL INCOME (LOSS) 1 713 2 147 EXPENSES (see notes – ETF Specific Information)Management fees 124 88 Independent Review Committee costs 2 1 GST/HST 11 7 TOTAL EXPENSES 137 96 INCREASE (DECREASE) IN NAV $ 1 576 $ 2 051 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.32 $ 0.60

142




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 1 576 $ 2 051 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONS Interest for distribution purposes – –Net realized loss (gain) on investments 74 (40)Change in unrealized loss (gain) on investments 254 (668)(Increase) decrease in accrued receivables (153) (202)Increase (decrease) in accrued payables 5 5 Cost of investments purchased (35 428) (23 174)Proceeds on sales of investments 18 703 3 794 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (14 969) (18 234)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 17 077 19 578 Cash paid on redemption of redeemable units – – Distributions paid to holders of redeemable units (2 189) (1 455)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 14 888 $ 18 123 Net increase (decrease) in cash for the period (81) (111)Cash (bank overdraft), beginning of period 89 116 CASH (BANK OVERDRAFT), END OF PERIOD $ 8 $ 5



143






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 90 666 $ 60 811 INCREASE (DECREASE) IN NAV 1 576 2 051 Early redemption fees – –Proceeds from redeemable units issued 17 077 19 578 Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units – – NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 17 077 19 578 Distributions from net income (1 883) (1 296)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 883) (1 296)NET INCREASE (DECREASE) IN NAV 16 770 20 333 NAV AT END OF PERIOD $ 107 436 $ 81 144

144



June 30, 2016








Bond Index*.


Credit risk (%)



RatingJune 30

2016December 31

2015

AA 18.1 17.7A 57.0 57.7BBB 24.9 24.6Total 100.0 100.0





2016December 31

2015

Corporate Bonds Financials 57.5 59.5 Infrastructure 12.3 11.2 Energy 11.1 10.9 Industrials 9.7 8.7 Communication 8.3 8.6 Other Net Assets 1.1 1.1 Total 100.0 100.0





2016December 31

2015























value of the ETF.






145



June 30, 2016









Opening units 4 500 3 000 Issued number of units 850 950 Reinvested number of units – –Redeemed number of units – –Ending number of units 5 350 3 950



June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %

Gross revenue 1 100 6 100RBC IS (paid) – (35) (2) (35)Tax withheld – – – –ETF revenue 1 65 4 65




June 30 2016

December 31 2015


146



June 30, 2016




CANADIAN BONDSCORPORATE 1 372 407 International Inc. 4.990 16-Jun-2020 $ 1 584 $ 1 562 5 037 Bank of Montreal 2.840 04-Jun-2020 5 236 5 300 5 719 Bank of Nova Scotia 2.270 13-Jan-2020 5 839 5 865 1 588 Bank of Nova Scotia 2.090 09-Sep-2020 1 612 1 620 6 181 Caisse Centrale Desjardins 1.748 02-Mar-2020 6 162 6 225 4 116 Capital Desjardins Inc. 5.187 05-May-2020 4 657 4 594 2 289 Enbridge Inc. 4.530 09-Mar-2020 2 495 2 467 1 602 Enbridge Pipelines Inc. 4.450 06-Apr-2020 1 776 1 747 627 Fairfax Financial Holdings Ltd. 7.250 22-Jun-2020 729 717 2 289 General Motors Financial of Canada Ltd. 3.080 22-May-2020 2 320 2 320 1 019 Genworth MI Canada Inc. 5.680 15-Jun-2020 1 138 1 113 2 275 Great-West Lifeco Inc. 4.650 13-Aug-2020 2 560 2 533 4 807 HSBC Bank Canada 2.938 14-Jan-2020 4 990 4 969 1 144 HSBC Bank Canada 1.816 07-Jul-2020 1 135 1 136 1 375 Hydro One Inc. 4.400 01-Jun-2020 1 548 1 527 801 Loblaw Cos. Ltd. 5.220 18-Jun-2020 910 903 4 578 National Bank of Canada 1.742 03-Mar-2020 4 564 4 609 1 374 OMERS Realty Corp. 3.203 24-Jul-2020 1 452 1 463 2 059 Rogers Communications Inc. 4.700 29-Sep-2020 2 288 2 286 6 866 Royal Bank of Canada† 1.920 17-Jul-2020 6 941 6 966 1 146 Shaw Communications Inc. 5.500 07-Dec-2020 1 310 1 294 2 286 Sun Life Financial Inc.*, FRN 2.600 25-Sep-2025 2 276 2 301 1 372 TELUS Corp. 5.050 23-Jul-2020 1 553 1 535 343 Teranet Holdings LP 4.807 16-Dec-2020 381 380 801 The Toronto-Dominion Bank 1.693 02-Apr-2020 800 808 5 180 The Toronto-Dominion Bank*, FRN 2.563 24-Jun-2020 5 341 5 393 2 289 Thomson Reuters Corp. 4.350 30-Sep-2020 2 502 2 491 573 Westcoast Energy Inc. 4.570 02-Jul-2020 633 624



147






2016December 31

2015

ASSETSInvestments at fair value $ 74 748 $ 57 882 Cash 112 280 Dividends receivable, interest accrued and other assets 592 471 TOTAL ASSETS 75 452 58 633 LIABILITIESDistributions payable – 128 Accounts payable and accrued expenses 20 15 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 20 143 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 75 432 $ 58 490


NAV PER UNIT $ 20.67 $ 20.52



INCOME (see note 3 in the generic notes)Interest for distribution purposes $ 1 012 $ 723 Securities lending revenue (see note 7 in the generic notes) 2 –Net realized gain (loss) on investments (39) (19)Change in unrealized gain (loss) on investments 467 (88)TOTAL INCOME (LOSS) 1 442 616 EXPENSES (see notes – ETF Specific Information)Management fees 82 49 Independent Review Committee costs 2 1 GST/HST 8 5 TOTAL EXPENSES 92 55 INCREASE (DECREASE) IN NAV $ 1 350 $ 561 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.43 $ 0.30

148




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 1 350 $ 561 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 39 19 Change in unrealized loss (gain) on investments (467) 88 (Increase) decrease in accrued receivables (121) (250)Increase (decrease) in accrued payables 5 12 Cost of investments purchased (26 611) (53 354)Proceeds on sales of investments 10 173 17 053 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (15 632) (35 871)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 16 479 36 589 Cash paid on redemption of redeemable units – – Distributions paid to holders of redeemable units (1 015) (688)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 15 464 $ 35 901 Net increase (decrease) in cash for the period (168) 30 Cash (bank overdraft), beginning of period 280 103 CASH (BANK OVERDRAFT), END OF PERIOD $ 112 $ 133

Interest received (paid) $ 891 $ 473 Dividends received, net of withholding taxes $ – $ –


149






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 58 490 $ 14 343 INCREASE (DECREASE) IN NAV 1 350 561 Early redemption fees – –Proceeds from redeemable units issued 16 479 36 595 Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units – – NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 16 479 36 595 Distributions from net income (887) (649)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (887) (649)NET INCREASE (DECREASE) IN NAV 16 942 36 507 NAV AT END OF PERIOD $ 75 432 $ 50 850

150



June 30, 2016








Bond Index*.


Credit risk (%)



RatingJune 30

2016December 31

2015

AA 51.2 46.2A 24.9 29.4BBB 23.9 24.4Total 100.0 100.0





2016December 31

2015

Corporate Bonds Financials 74.9 72.9 Communication 10.1 11.8 Energy 6.4 7.5 Infrastructure 4.1 4.8 Real Estate 1.9 – Industrials 1.7 2.0 Other Net Assets 0.9 1.0 Total 100.0 100.0





2016December 31

2015























value of the ETF.






151



June 30, 2016









Opening units 2 850 700 Issued number of units 800 1 750 Reinvested number of units – –Redeemed number of units – –Ending number of units 3 650 2 450



June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %

Gross revenue 3 100 – –RBC IS (paid) (1) (35) – –Tax withheld – – – –ETF revenue 2 65 – –




June 30 2016

December 31 2015


152



June 30, 2016




CANADIAN BONDSCORPORATE 2 908 407 International Inc. 4.300 26-May-2021 $ 3 262 $ 3 285 3 774 Bank of Montreal 3.400 23-Apr-2021 4 015 4 090 2 486 Bank of Nova Scotia 3.270 11-Jan-2021 2 625 2 665 2 361 Bank of Nova Scotia 2.873 04-Jun-2021 2 447 2 498 2 544 bcIMC Realty Corp. 2.100 03-Jun-2021 2 591 2 597 2 304 Brookfield Asset Management Inc. 5.300 01-Mar-2021 2 575 2 610 3 368 Capital Desjardins Inc.*, FRN 4.954 15-Dec-2026 3 792 3 830 2 908 Enbridge Inc. 3.160 11-Mar-2021 2 932 2 991 1 724 Fairfax Financial Holdings Ltd. 6.400 25-May-2021 1 943 1 947 2 907 Honda Canada Finance Inc. 2.155 18-Feb-2021 2 952 2 968 1 036 HSBC Bank Canada 2.449 29-Jan-2021 1 050 1 054 5 020 HSBC Bank Canada 2.908 29-Sep-2021 5 135 5 205 2 180 OMERS Realty Corp. 2.971 05-Apr-2021 2 275 2 311 3 456 Rogers Communications Inc. 5.340 22-Mar-2021 3 937 3 962 2 486 Royal Bank of Canada† 2.860 04-Mar-2021 2 580 2 625 2 179 Shaw Communications Inc. 3.150 19-Feb-2021 2 237 2 244 2 180 Sun Life Financial Inc. 4.570 23-Aug-2021 2 431 2 455 2 544 Sun Life Financial Inc.*, FRN 3.100 19-Feb-2026 2 610 2 616 4 000 Thomson Reuters Corp. 3.309 12-Nov-2021 4 108 4 198 2 180 Toronto Hydro Corp. 3.540 18-Nov-2021 2 366 2 398 3 635 TransCanada PipeLines Ltd. 3.650 15-Nov-2021 3 874 3 922 2 500 Wells Fargo Canada Corp. 3.040 29-Jan-2021 2 613 2 653



153






2016December 31

2015

ASSETSInvestments at fair value $ 65 124 $ 46 089 Cash 22 119 Due from investment dealers – 15 Dividends receivable, interest accrued and other assets 527 379 TOTAL ASSETS 65 673 46 602 LIABILITIESDistributions payable – 117 Accounts payable and accrued expenses 17 10 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 17 127 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 65 656 $ 46 475


NAV PER UNIT $ 20.52 $ 20.21



INCOME (see note 3 in the generic notes)Interest for distribution purposes $ 979 $ 205 Securities lending revenue (see note 7 in the generic notes) 1 – Net realized gain (loss) on investments 114 5 Change in unrealized gain (loss) on investments 710 79 TOTAL INCOME (LOSS) 1 804 289 EXPENSES (see notes – ETF Specific Information)Management fees 71 15 Independent Review Committee costs 2 –GST/HST 7 2 TOTAL EXPENSES 80 17 INCREASE (DECREASE) IN NAV $ 1 724 $ 272 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.62 $ 0.47

154





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 1 724 $ 272 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONS Interest for distribution purposes – –Net realized loss (gain) on investments (114) (5)Change in unrealized loss (gain) on investments (710) (79)(Increase) decrease in accrued receivables (148) (15)Increase (decrease) in accrued payables 7 1 Cost of investments purchased (32 084) (6 107)Proceeds on sales of investments 13 888 2 034 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (17 437) (3 899)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 20 365 4 129 Cash paid on redemption of redeemable units (2 049) 1 Distributions paid to holders of redeemable units (976) (207)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 17 340 $ 3 923 Net increase (decrease) in cash for the period (97) 24 Cash (bank overdraft), beginning of period 119 26 CASH (BANK OVERDRAFT), END OF PERIOD $ 22 $ 50

Interest received (paid) $ 831 $ 190 Dividends received, net of withholding taxes $ – $ –

155






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 46 475 $ 9 060 INCREASE (DECREASE) IN NAV 1 724 272 Early redemption fees – –Proceeds from redeemable units issued 20 365 4 129 Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units (2 049) (2 024)NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 18 316 2 105 Distributions from net income (859) (185)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (859) (185)NET INCREASE (DECREASE) IN NAV 19 181 2 192 NAV AT END OF PERIOD $ 65 656 $ 11 252

156



June 30, 2016








Bond Index*.


Credit risk (%)



RatingJune 30

2016December 31

2015

AA 25.8 26.4A 50.6 49.2BBB 23.6 24.4Total 100.0 100.0





2016December 31

2015

Corporate Bonds Financials 52.7 51.8 Communication 15.8 15.1 Energy 10.5 12.7 Infrastructure 8.7 10.5 Real Estate 7.5 4.3 Industrials 4.0 4.8 Other Net Assets 0.8 0.8 Total 100.0 100.0





2016December 31

2015

Less than 1 year – –1 – 5 years 100.0 –5 – 10 years – 100.0> 10 years – –Total 100.0 100.0






















value of the ETF.






157



June 30, 2016









Opening units 2 300 450 Issued number of units 1 000 200 Reinvested number of units – –Redeemed number of units (100) (100)Ending number of units 3 200 550



June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %





June 30 2016

December 31 2015


158



June 30, 2016



Fair % of Net Holdings Security Cost Value Assets

CANADIAN EQUITIESConsumer Discretionary 40 223 Cineplex Inc. $ 1 993 $ 2 075 69 999 Shaw Communications Inc. 1 865 1 736

3 858 3 811 4.2Consumer Staples 9 086 North West Co., Inc. 238 268

238 268 0.3Energy 40 939 ARC Resources Ltd. 853 905 14 430 Bonterra Energy Corp. 570 384 39 929 Canadian Natural Resources Ltd. 1 167 1 592 44 478 Enbridge Income Fund Holdings Inc. 1 320 1 426 40 299 Enerflex Ltd. 455 430 57 758 Ensign Energy Services Inc. 422 419 36 316 Freehold Royalties Ltd. 632 433 79 053 Inter Pipeline Ltd. 2 244 2 166 49 576 Keyera Corp. 1 976 1 959 32 667 Mullen Group Ltd. 648 461 55 640 Parkland Fuel Corp. 1 204 1 251 27 550 Pason Systems Inc. 498 492 23 239 Peyto Exploration & Development Corp. 775 806 29 975 PrairieSky Royalty Ltd. 813 735 47 684 Suncor Energy Inc. 1 641 1 709 52 108 TORC Oil & Gas Ltd. 309 427 63 383 Whitecap Resources Inc. 684 626

16 211 16 221 17.9Financials 73 162 Brookfield Property Partners LP 1 947 2 125 61 720 Canadian Apartment Properties REIT 1 719 2 047 40 699 Canadian Imperial Bank of Commerce 3 883 3 949 38 832 Canadian Real Estate Investment Trust 1 730 1 876 60 908 Canadian Western Bank 1 417 1 501 82 253 CI Financial Corp. 2 627 2 217 98 135 Cominar Real Estate Investment Trust 1 710 1 653 85 720 Crombie Real Estate Investment Trust 1 113 1 316 73 108 First Capital Realty Inc. 1 445 1 620 39 653 Genworth MI Canada Inc. 1 283 1 314 37 369 Granite Real Estate Investment Trust 1 530 1 447 75 126 Great-West Lifeco Inc. 2 547 2 560 100 092 H&R Real Estate Investment Trust 2 092 2 253 47 702 Home Capital Group Inc. 1 483 1 527 48 579 IGM Financial Inc. 2 051 1 708 46 961 Industrial Alliance Insurance & Financial Services Inc. 1 963 1 907


Financials (cont.) 30 758 Intact Financial Corp. $ 2 575 $ 2 839 66 396 Milestone Apartments Real Estate Investment Trust 1 239 1 254 76 106 Power Financial Corp. 2 556 2 257 234 715 Pure Industrial Real Estate Trust 1 080 1 209 76 182 Royal Bank of Canada* 5 796 5 816 55 184 Smart Real Estate Investment Trust 1 719 2 108 24 902 TMX Group Ltd. 1 237 1 338

46 742 47 841 52.9Health Care 31 961 Extendicare Inc. 292 260

292 260 0.3Industrials 33 312 Russel Metals Inc. 807 762 45 342 Transcontinental Inc. 834 794 44 025 Westshore Terminals Investment Corp. 1 027 824

2 668 2 380 2.7Information Technology 25 932 Computer Modelling Group Ltd. 291 268

291 268 0.3Materials 15 143 Agrium Inc. 1 937 1 770 52 046 Dominion Diamond Corp. 894 595 34 465 Intertape Polymer Group Inc. 585 727 52 775 Labrador Iron Ore Royalty Corp. 794 655 144 858 Nevsun Resources Ltd. 605 549 295 542 Western Forest Products Inc. 635 603

5 450 4 899 5.5Telecommunication Services 49 921 BCE Inc. 2 756 3 052 42 216 Rogers Communications Inc. 1 933 2 208 56 938 TELUS Corp. 2 299 2 369

6 988 7 629 8.4Utilities 94 631 Algonquin Power & Utilities Corp. 1 014 1 125 40 471 Brookfield Renewable Partners LP/CA 1 426 1 557 43 662 Canadian Utilities Ltd. 1 634 1 634 103 560 Superior Plus Corp. 1 210 1 104 79 997 TransAlta Renewables Inc. 1 039 1 069

6 323 6 489 7.2TOTAL CANADIAN EQUITIES 89 061 90 066 99.4Less: Transaction costs (28) – –TOTAL INVESTMENTS $ 89 033 90 066 99.4OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 560 0.6NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 90 626 100.0

*Investment in related party (see note 8 in the generic notes).

159






2016December 31

2015

ASSETSInvestments at fair value $ 90 066 $ 60 791 Cash 175 329 Due from investment dealers – 12 Subscriptions receivable 3 771 – Dividends receivable, interest accrued and other assets 396 285 TOTAL ASSETS 94 408 61 417 LIABILITIESDue to investment dealers 3 747 – Distributions payable – 197 Accounts payable and accrued expenses 35 25 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 3 782 222 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 90 626 $ 61 195


NAV PER UNIT $ 19.08 $ 17.74



INCOME (see note 3 in the generic notes)Dividends $ 1 839 $ 1 273 Securities lending revenue (see note 7 in the generic notes) 29 6 Net realized gain (loss) on investments (2 487) (1 886)Net gain (loss) on foreign currencies and other net assets – (1)Change in unrealized gain (loss) on investments 8 476 (76)TOTAL INCOME (LOSS) 7 857 (684)EXPENSES (see notes – ETF Specific Information)Management fees 149 112 Independent Review Committee costs 2 1 GST/HST 13 11 Transaction costs 26 40 TOTAL EXPENSES 190 164 INCREASE (DECREASE) IN NAV $ 7 667 $ (848)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 1.84 $ (0.30)

160





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 7 667 $ (848)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 2 487 1 886 Change in unrealized loss (gain) on investments (8 476) 76 (Increase) decrease in accrued receivables (111) (103)Increase (decrease) in accrued payables 10 9 Cost of investments purchased (36 925) (42 961)Proceeds on sales of investments 17 398 22 678 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (17 950) (19 263)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 20 576 20 408 Cash paid on redemption of redeemable units (959) –Distributions paid to holders of redeemable units (1 821) (1 295)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 17 796 $ 19 113 Net increase (decrease) in cash for the period (154) (150)Cash (bank overdraft), beginning of period 329 241 CASH (BANK OVERDRAFT), END OF PERIOD $ 175 $ 91

Interest received (paid) $ – $ –Dividends received, net of withholding taxes $ 1 728 $ 1 170

161






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 61 195 $ 47 010 INCREASE (DECREASE) IN NAV 7 667 (848)Early redemption fees – –Proceeds from redeemable units issued 24 347 19 385 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (959) –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 23 388 19 385 Distributions from net income (1 624) (1 153)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 624) (1 153)NET INCREASE (DECREASE) IN NAV 29 431 17 384 NAV AT END OF PERIOD $ 90 626 $ 64 394

162



June 30, 2016




with exposure to the performance of a diversified portfolio of

high-quality Canadian dividend-paying equity securities that

will provide regular income and have the potential for long-

term capital growth.






2016December 31

2015

Canadian Equities Financials 52.8 53.7 Energy 17.9 19.7 Telecommunication Services 8.4 8.3 Utilities 7.2 5.2 Materials 5.4 5.8 Consumer Discretionary 4.2 4.2 Industrials 2.6 1.8 Health Care 0.3 0.3 Information Technology 0.3 0.3 Consumer Staples 0.3 0.3 Other Net Assets 0.6 0.4 Total 100.0 100.0

Other price risk (% impact on net assets)

The table below shows the impact of a 1% change in the

broad-based index (noted below) on the ETF’s net assets,

using a 29-month (December 31, 2015 – 23-month)

historical correlation of data of the ETF’s return and the

index, with all other factors kept constant, as at:

June 30 2016

December 31 2015

S&P/TSX Capped Composite Total Return Index + or - 1.0 + or - 0.9

Since historical correlation may not be representative of future

correlation, actual results could differ from this sensitivity

analysis and the difference could be material.





Fixed-income and debt securities 90 066 – – 90 066 Total financial instruments 90 066 – – 90 066 % of total portfolio 100.0 – – 100.0








the ETF as compensation for its services. The management fee

of the ETF is calculated at 0.39% annually, before GST/HST, of













Opening units 3 450 2 300 Issued number of units 1 350 950 Reinvested number of units – –Redeemed number of units (50) –Ending number of units 4 750 3 250

163



June 30, 2016




June 30 2016

June 30 2015

$ % $ %

Total transaction costs 26 100 40 100Related-party brokerage commissions* 3 12 4 10Commission arrangements† 3 12 – –





June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %

Gross revenue 51 100 9 100RBC IS (paid) (18) (35) (3) (35)Tax withheld (4) (9) – –ETF revenue 29 56 6 65




June 30 2016

December 31 2015

RBC Strategic Global Dividend Leaders ETF 0.8 –


164



June 30, 2016




UNITED STATES EQUITIESConsumer Discretionary 9 917 Buckle Inc. $ 405 $ 335 4 326 Capella Education Co. 279 296 15 404 Carnival Corp. 970 884 7 434 Cato Corp. 338 364 11 910 Cinemark Holdings Inc. 511 564 11 361 Garmin Ltd. 593 626 6 863 Genuine Parts Co. 802 902 22 893 H&R Block Inc. 591 684 6 763 Hasbro Inc. 674 738 6 425 HSN Inc. 429 408 7 267 John Wiley & Sons Inc. 429 492 10 450 L Brands Inc. 1 167 911 6 817 Lamar Advertising Co. 504 587 10 436 Leggett & Platt Inc. 658 693 26 729 McDonald’s Corp. 3 304 4 177 16 354 Nutrisystem Inc. 415 539 5 571 Polaris Industries Inc. 664 592 25 278 Stein Mart Inc. 328 253 4 471 Sturm Ruger & Co., Inc. 381 372 8 775 Superior Industries International Inc. 228 305 6 969 Tupperware Brands Corp. 545 509 12 357 VF Corp. 964 987 16 416 Viacom Inc. 832 884 8 416 Williams-Sonoma Inc. 657 570 7 910 Wyndham Worldwide Corp. 695 732 28 142 Yum! Brands Inc. 2 681 3 031

20 044 21 435 7.4Consumer Staples 54 854 Altria Group Inc. 3 460 4 913 13 775 Clorox Co. 1 952 2 476 87 332 Coca-Cola Co. 4 569 5 141 18 072 Hershey Co. 2 075 2 664 24 595 Kellogg Co. 2 448 2 608 19 662 Kimberly-Clark Corp. 2 768 3 511 36 043 PepsiCo Inc. 4 360 4 959 37 682 Philip Morris International Inc. 3 959 4 978 25 600 SpartanNash Co. 765 1 017 41 868 Sysco Corp. 2 542 2 759 50 761 Wal-Mart Stores Inc. 4 586 4 814

33 484 39 840 13.7Energy 54 614 ConocoPhillips 4 046 3 092 50 507 Exxon Mobil Corp. 5 407 6 149 46 793 Marathon Petroleum Corp. 2 111 2 307 28 858 Oceaneering International Inc. 1 499 1 119 12 673 ONEOK Inc. 664 781 26 520 Phillips 66 2 877 2 733 40 133 Schlumberger Ltd. 4 077 4 122 17 125 Tesoro Corp. 1 676 1 666 33 551 Valero Energy Corp. 2 514 2 222

24 871 24 191 8.3


Financials 5 773 Agree Realty Corp. $ 332 $ 353 5 014 Alexandria Real Estate Equities Inc. 225 362 7 143 American Assets Trust Inc. 526 674 9 696 American Campus Communities Inc. 374 394 6 006 American Financial Group Inc. 466 666 6 669 Ameriprise Financial Inc. 550 577 4 440 AMERISAFE Inc. 815 778 10 719 Arthur J Gallagher & Co. 594 663 19 591 Associated Banc-Corp. 1 093 1 125 5 261 Bank of Hawaii Corp. 808 890 22 533 BB&T Corp. 318 295 17 632 BBCN Bancorp. Inc. 1 042 1 060 2 529 BlackRock Inc. 454 425 5 197 Boston Properties Inc. 409 353 20 594 Brookline Bancorp Inc. 373 486 12 490 Care Capital Properties Inc. 510 536 11 162 Cathay General Bancorp. 246 254 11 676 Chesapeake Lodging Trust 503 582 8 376 CME Group Inc. 437 607 7 680 Community Bank System Inc. 369 446 12 667 Corporate Office Properties Trust 416 490 11 785 Corrections Corp. of America 1 042 945 11 480 Dime Community Bancshares Inc. 642 730 12 616 Douglas Emmett Inc. 656 763 12 073 East West Bancorp Inc. 308 355 4 983 EastGroup Properties Inc. 779 881 5 797 EPR Properties 509 454 11 721 Equity One Inc. 264 276 10 562 Equity Residential 890 842 6 070 Extra Space Storage Inc. 282 313 3 548 Federal Realty Investment Trust 297 391 13 862 First Financial Bancorp. 316 364 22 296 Franklin Street Properties Corp. 932 663 24 853 Fulton Financial Corp. 2 155 1 996 22 737 General Growth Properties Inc. 324 424 10 236 Geo Group Inc. 499 611 9 898 Getty Realty Corp. 629 640 12 384 Glacier Bancorp Inc. 605 671 10 119 Hanmi Financial Corp. 272 269 18 321 HCP Inc. 1 126 1 084 8 355 HFF Inc. 308 429 5 698 Highwoods Properties Inc. 439 483 8 290 Horace Mann Educators Corp. 861 714 5 784 Independent Bank Corp. 880 876 19 993 Invesco Ltd. 298 344 24 739 JPMorgan Chase & Co. 791 1 067 11 839 Liberty Property Trust 436 455 12 711 Lincoln National Corp. 411 432 6 317 LTC Properties Inc. 411 354 9 986 National Retail Properties Inc. 242 305 12 964 Oritani Financial Corp. 523 604 10 254 PNC Financial Services Group Inc. 1 110 1 404 6 093 Post Properties Inc. 397 491

165


June 30, 2016




Financials (cont.) 13 374 Principal Financial Group Inc. $ 320 $ 357 20 142 Progressive Corp. 876 841 7 560 Prosperity Bancshares Inc. 477 555 13 484 Provident Financial Services Inc. 529 553 3 117 PS Business Parks Inc. 1 029 1 099 3 213 Public Storage 1 353 1 283 15 343 Retail Opportunity Investments Corp. 567 613 5 095 RLI Corp. 441 478 9 686 S&T Bancorp. Inc. 245 314 13 207 Sabra Health Care REIT Inc. 763 995 3 804 Saul Centers Inc. 397 427 22 319 Senior Housing Properties Trust 2 291 1 924 4 985 Simon Property Group Inc. 969 905 3 605 Sovran Self Storage Inc. 448 436 20 741 Summit Hotel Properties Inc. 1 146 1 041 8 872 T. Rowe Price Group Inc. 362 342 10 644 Tanger Factory Outlet Centers Inc. 386 470 5 737 Taubman Centers Inc. 421 409 25 012 TCF Financial Corp. 389 410 3 610 Tompkins Financial Corp. 500 536 7 108 Travelers Cos. Inc. 356 350 33 361 Trustco Bank Corp. NY 413 436 14 836 Unum Group 407 427 12 339 Urban Edge Properties 284 309 9 764 Urstadt Biddle Properties Inc. 346 343 24 500 US Bancorp. 449 501 10 523 Ventas Inc. 340 308 13 561 Washington Federal Inc. 392 411 10 580 Webster Financial Corp. 230 305 31 306 Wells Fargo & Co. 282 278 23 400 Weyerhaeuser Co. 498 466

48 400 50 768 17.5Health Care 75 025 Abbott Laboratories 3 919 3 830 55 380 AbbVie Inc. 4 035 4 453 23 594 Amgen Inc. 4 805 4 662 40 758 Eli Lilly & Co. 4 121 4 168 44 260 Johnson & Johnson 5 678 6 972 13 660 Landauer Inc. 705 730 72 896 Merck & Co., Inc. 5 051 5 454 36 423 Meridian Bioscience Inc. 841 922

29 155 31 191 10.8Industrials 15 094 3M Co. 2 987 3 433 4 697 Allegiant Travel Co. 875 924 14 991 Applied Industrial Technologies Inc. 802 879 11 402 CEB Inc. 848 913 16 398 CH Robinson Worldwide Inc. 1 532 1 581 62 631 CSX Corp. 2 277 2 121 13 859 Crane Co. 940 1 021 27 115 Eaton Corp. PLC 2 045 2 103 33 785 Emerson Electric Co. 2 386 2 289 28 211 Fastenal Co. 1 523 1 626 15 695 HNI Corp. 698 948 9 249 Hubbell Inc. 1 212 1 267 8 968 Lockheed Martin Corp. 2 215 2 890 4 684 National Presto Industries Inc. 516 574


Industrials (cont.) 18 657 Norfolk Southern Corp. $ 2 096 $ 2 063 45 896 Pitney Bowes Inc. 1 237 1 061 10 847 Powell Industries Inc. 465 554 29 854 Resources Connection Inc. 576 573 11 827 Rockwell Automation Inc. 1 649 1 764 27 264 Union Pacific Corp. 3 083 3 089 22 215 United Parcel Service Inc. 2 835 3 108 26 041 Waste Management Inc. 2 065 2 241 6 197 Watsco Inc. 1 067 1 132

35 929 38 154 13.2Information Technology 22 036 Analog Devices Inc. 1 472 1 621 41 203 Apple Inc. 4 925 5 116 90 409 Cisco Systems Inc. 2 902 3 369 14 902 Comtech Telecommunications Corp. 566 248 81 723 Intel Corp. 3 217 3 481 16 118 International Business Machines Corp. 3 222 3 177 45 803 Intersil Corp. 834 805 23 406 Linear Technology Corp. 1 279 1 414 67 920 Microsoft Corp. 4 325 4 514 24 430 National Instruments Corp. 982 869 26 081 NIC Inc. 633 743 23 156 Paychex Inc. 1 603 1 789 38 855 QUALCOMM Inc. 3 083 2 702 11 568 Science Applications International Corp. 721 877 22 548 TE Connectivity Ltd. 1 695 1 672 17 779 Tessera Technologies Inc. 684 707 31 696 Texas Instruments Inc. 2 139 2 579 24 173 Xilinx Inc. 1 409 1 448

35 691 37 131 12.8Materials 5 459 Air Products & Chemicals Inc. 1 008 1 007 19 093 Commercial Metals Co. 368 419 4 587 Compass Minerals International Inc. 488 442 6 323 Haynes International Inc. 269 263 6 160 Innophos Holdings Inc. 349 338 9 632 LyondellBasell Industries NV 1 036 931 13 421 Nucor Corp. 782 861 7 192 Packaging Corp. of America 600 625 12 429 PH Glatfelter Co. 319 316 7 260 Praxair Inc. 1 096 1 060 6 104 Reliance Steel & Aluminum Co. 496 610 7 586 Schweitzer-Mauduit International Inc. 366 348 5 548 Scotts Miracle-Gro Co. 428 504 9 259 Sonoco Products Co. 485 597 19 213 Steel Dynamics Inc. 468 611 8 356 Worthington Industries Inc. 315 459

8 873 9 391 3.2Telecommunication Services 133 867 AT&T Inc. 6 750 7 511 34 903 Spok Holdings Inc. 728 869 97 904 Verizon Communications Inc. 5 892 7 100

13 370 15 480 5.3

166


June 30, 2016




Utilities 44 219 AES Corp. $ 668 $ 717 6 150 ALLETE Inc. 452 516 13 963 Alliant Energy Corp. 534 720 12 305 American Electric Power Co., Inc. 904 1 120 13 935 Aqua America Inc. 509 645 6 710 Atmos Energy Corp. 464 709 7 079 DTE Energy Co. 703 911 12 327 Dominion Resources Inc. 1 075 1 247 10 141 Edison International 873 1 023 6 846 El Paso Electric Co. 317 420 11 628 Eversource Energy 859 905 5 317 IDACORP Inc. 507 562 18 829 MDU Resources Group Inc. 496 587 10 160 New Jersey Resources Corp. 370 509 8 021 NextEra Energy Inc. 1 044 1 358 15 093 OGE Energy Corp. 583 642 19 374 PPL Corp. 781 950 15 779 Public Service Enterprise Group Inc. 784 955 7 068 Sempra Energy 966 1 047 18 157 Southern Co. 1 188 1 265 5 413 Southwest Gas Corp. 377 553 11 656 UGI Corp. 543 685 8 149 Vectren Corp. 433 557 11 280 WEC Energy Group Inc. 873 957 9 475 Westar Energy Inc. 641 690 5 575 WGL Holdings Inc. 400 513 16 824 Xcel Energy Inc. 903 978

18 247 21 741 7.5TOTAL UNITED STATES EQUITIES 268 064 289 322 99.7Less: Transaction costs (35) – –TOTAL INVESTMENTS $ 268 029 289 322 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 781 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 290 103 100.0

167






2016December 31

2015

ASSETSInvestments at fair value $ 289 322 $ 250 425 Cash 503 1 263 Dividends receivable, interest accrued and other assets 393 443 TOTAL ASSETS 290 218 252 131 LIABILITIESDue to investment dealers – 633 Distributions payable – 489 Accounts payable and accrued expenses 115 97 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 115 1 219 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 290 103 $ 250 912


NAV PER UNIT $ 27.11 $ 26.69



INCOME (see note 3 in the generic notes)Dividends $ 4 476 $ 3 402 Other income (loss) – 1 Securities lending revenue (see note 7 in the generic notes) 10 2 Net realized gain (loss) on investments 863 3 606 Net gain (loss) on foreign currencies and other net assets (23) (2)Change in unrealized gain (loss) on investments 4 447 (4 702)TOTAL INCOME (LOSS) 9 773 2 307 EXPENSES (see notes – ETF Specific Information)Management fees 522 365 Independent Review Committee costs 2 1 GST/HST 50 31 Transaction costs 48 53 Withholding tax 596 471 TOTAL EXPENSES 1 218 921 INCREASE (DECREASE) IN NAV $ 8 555 $ 1 386INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.84 $ 0.19

168





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 8 555 $ 1 386ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments (863) (3 606)Change in unrealized loss (gain) on investments (4 447) 4 702(Increase) decrease in accrued receivables 50 (92)Increase (decrease) in accrued payables 18 30 Cost of investments purchased (145 165) (183 343)Proceeds on sales of investments 110 945 114 154 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (30 907) (66 769)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 52 116 77 757 Cash paid on redemption of redeemable units (18 143) (8 575)Distributions paid to holders of redeemable units (3 826) (2 593)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 30 147 $ 66 589 Net increase (decrease) in cash for the period (760) (180)Cash (bank overdraft), beginning of period 1 263 441 CASH (BANK OVERDRAFT), END OF PERIOD $ 503 $ 261


169






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 250 912 $ 132 021 INCREASE (DECREASE) IN NAV 8 555 1 386Early redemption fees – –Proceeds from redeemable units issued 52 116 77 757 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (18 143) (8 575)NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 33 973 69 182 Distributions from net income (3 337) (2 327)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (3 337) (2 327)NET INCREASE (DECREASE) IN NAV 39 191 68 241NAV AT END OF PERIOD $ 290 103 $ 200 262

170



June 30, 2016





high-quality U.S. dividend-paying equity securities that will

provide regular income and that have the potential for long-

term capital growth.






2016December 31

2015

United States Equities Financials 17.5 19.2 Consumer Staples 13.7 12.3 Industrials 13.2 12.6 Information Technology 12.8 13.4 Health Care 10.8 10.6 Energy 8.3 8.0 Utilities 7.5 6.9 Consumer Discretionary 7.4 8.8 Telecommunication Services 5.3 4.7 Materials 3.2 3.4 Other Net Assets 0.3 0.1 Total 100.0 100.0

Currency risk (% of net assets)

The table below summarizes the ETF’s net exposure (after

hedging, if any) to currency risk as at:

CurrencyJune 30

2016December 31

2015

United States dollar 100.0 100.2Total 100.0 100.2

As at June 30, 2016, if the Canadian dollar had strengthened

or weakened by 1% in relation to the above currencies, with

all other factors kept constant, the ETF’s net assets may have

decreased or increased, respectively, by approximately 1.0%

(December 31, 2015 – 1.0%). In practice, actual results could

differ from this sensitivity analysis and the difference could

be material.




using a 29-month (December 31, 2015 – 23-month)

historical correlation of data of the ETF’s return and the

index, with all other factors kept constant, as at:

June 30 2016

December 31 2015

S&P 1500 Total Return Index (CAD) + or - 0.8 + or - 0.9




















The ETF had no capital or non-capital losses as at

December 31, 2015.

171



June 30, 2016








Opening units 9 400 5 550 Issued number of units 2 000 3 050 Reinvested number of units – –Units consolidated* – –Redeemed number of units (700) (350)Ending number of units 10 700 8 250

* The units of the ETF are consolidated immediately after a distribution is reinvested so that the total number of units outstanding of the ETF after consolidation is the same as before the distribution.




June 30 2016

June 30 2015

$ % $ %

Total transaction costs 48 100 53 100Related-party brokerage commissions* – – – –Commission arrangements† – – – –





June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %

Gross revenue 18 100 3 100RBC IS (paid) (6) (35) (1) (35)Tax withheld (2) (9) – –ETF revenue 10 56 2 65





June 30 2016

December 31 2015

RBC Quant U.S. Dividend Leaders (CAD Hedged) ETF 18.4 21.3RBC Strategic Global Dividend Leaders ETF 0.1 –Total 18.5 21.3

172



June 30, 2016




ETF UNITS 3 880 876 RBC Quant U.S. Dividend Leaders ETF* $ 98 713 $ 105 220

TOTAL ETF UNITS 98 713 105 220 101.8Less: Transaction costs (4) – –TOTAL INVESTMENTS $ 98 709 105 220 101.8UNREALIZED LOSS ON FOREIGN EXCHANGE CONTRACTS (SCHEDULE A) (2 053) (2.0)TOTAL PORTFOLIO 103 167 99.8OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 197 0.2NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 103 364 100.0

SCHEDULE AForeign Exchange Contracts Unrealized Contracts Maturity Date Gain (Loss)

Bought CAD 104 383 Sold USD 81 958 @ 1.2736 15-Jul-2016 $ (2 049)Bought CAD 3 638 Sold USD 2 851 @ 1.2758 15-Jul-2016 (66)Bought USD 4 155 Sold CAD 5 300 @ 1.2758 15-Jul-2016 95Bought USD 3 393 Sold CAD 4 439 @ 1.3084 15-Jul-2016 (33)

TOTAL FOREIGN EXCHANGE $ (2 053)

All counterparties have a credit rating of at least A.


173






2016December 31

2015

ASSETSInvestments at fair value $ 105 220 $ 53 393 Cash 197 168 Dividends receivable, interest accrued and other assets – 104 TOTAL ASSETS 105 417 53 665 LIABILITIESUnrealized loss on foreign exchange contracts 2 053 1 174 Distributions payable – 86 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 2 053 1 260 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 103 364 $ 52 405


NAV PER UNIT $ 21.76 $ 20.16



INCOME (see note 3 in the generic notes)Dividends $ 1 108 $ 271 Securities lending revenue (see note 7 in the generic notes) 3 7 Net realized gain (loss) on investments 446 422 Net gain (loss) on foreign currencies and other net assets 6 396 (750)Change in unrealized gain (loss) on investments 2 703 (696)Change in unrealized gain (loss) in value of forward contracts (879) (547)TOTAL INCOME (LOSS) 9 777 (1 293)EXPENSES (see notes – ETF Specific Information)Transaction costs 5 1 TOTAL EXPENSES 5 1 INCREASE (DECREASE) IN NAV $ 9 772 $ (1 294)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 2.30 $ (1.32)

174





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 9 772 $ (1 294)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments (446) (422)Change in unrealized loss (gain) on investments and foreign exchange contracts (1 824) 1 243 (Increase) decrease in accrued receivables 104 22 Increase (decrease) in accrued payables – –Cost of investments purchased (61 701) (30 850)Proceeds on sales of investments 13 023 7 249 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (41 072) (24 052)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 51 982 29 876 Cash paid on redemption of redeemable units (9 695) (5 390)Distributions paid to holders of redeemable units (1 186) (286)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 41 101 $ 24 200 Net increase (decrease) in cash for the period 29 148 Cash (bank overdraft), beginning of period 168 46 CASH (BANK OVERDRAFT), END OF PERIOD $ 197 $ 194

Interest received (paid) $ – $ –Dividends received, net of withholding taxes $ 1 212 $ 293

175





Total2016 2015

NAV AT BEGINNING OF PERIOD $ 52 405 $ 10 735 INCREASE (DECREASE) IN NAV 9 772 (1 294)Early redemption fees – –Proceeds from redeemable units issued 51 982 29 876 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (9 695) (5 390)NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 42 287 24 486 Distributions from net income (1 100) (259)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 100) (259)NET INCREASE (DECREASE) IN NAV 50 959 22 933 NAV AT END OF PERIOD $ 103 364 $ 33 668


176



June 30, 2016



with exposure, either directly or indirectly through investment

in other ETFs managed by RBC GAM, to the performance of

a diversified portfolio of high-quality U.S. dividend-paying

equity securities that will provide regular income and that have

the potential for long-term capital growth, while seeking to

minimize the exposure to currency fluctuations between the

U.S. and Canadian dollars.


The ETF invests in the RBC Quant U.S. Dividend Leaders ETF.

The ETF’s exposure to financial instrument risk is based on

the underlying ETF asset mix.





2016December 31

2015

United States Equities Financials 17.5 19.2 Consumer Staples 13.7 12.3 Industrials 13.2 12.6 Information Technology 12.8 13.4 Health Care 10.8 10.6 Energy 8.3 8.0 Utilities 7.5 6.9 Consumer Discretionary 7.4 8.8 Telecommunication Services 5.3 4.7 Materials 3.2 3.4 Other Net Assets 0.3 0.1 Total 100.0 100.0


Since the currency risk of the ETF has been hedged using

foreign exchange contracts, the ETF has minimal sensitivity

to changes in foreign exchange rates.




using a 20-month (December 31, 2015 – 14-month) historical

correlation of data of the ETF’s return and the index, with all

other factors kept constant, as at:

June 30 2016

December 31 2015

S&P 1500 Total Return Index (USD) + or - 0.8 + or - 0.7








ETF units 105 220 – – 105 220 Derivatives – assets – 95 – 95 Derivatives – liabilities – (2 148) – (2 148)Total financial instruments 105 220 (2 053) – 103 167 % of total portfolio 102.0 (2.0) – 100.0










177



June 30, 2016




underlying mutual fund as a percentage of NAV, and the


the underlying fund (“Ownership”). The underlying fund is

established and conducts business in Canada, and has an


June 30 2016

December 31 2015


RBC Quant U.S. Dividend Leaders ETF 101.8 18.4 101.8 21.3












Opening units 2 600 500Issued number of units 2 600 1 400Reinvested number of units – –Redeemed number of units (450) (250)Ending number of units 4 750 1 650




June 30 2016

June 30 2015

$ % $ %






June 30 2016

June 30 2015

Fair value of securities loaned 37 680 Fair value of collateral received 38 694





June 30 2016

June 30 2015

$ % $ %


178



June 30, 2016




EUROPEAN EQUITIESConsumer Discretionary 9 600 Berkeley Group Holdings PLC $ 551 $ 421 6 400 Hugo Boss AG 758 470 179 900 ITV PLC 707 561 7 000 Next PLC 922 599 10 900 Nokian Renkaat OYJ 439 504 4 200 Paddy Power Betfair PLC 773 573 17 400 Persimmon PLC 658 437 11 300 ProSiebenSat.1 Media AG 697 639 21 500 Schaeffler AG 445 368

5 950 4 572 4.0Consumer Staples 185 900 Unilever NV 10 409 11 241

10 409 11 241 9.8Energy 182 100 Royal Dutch Shell PLC 6 432 6 473 127 500 Statoil ASA 2 762 2 851 25 900 Technip SA 1 979 1 824 79 000 Total SA 4 941 4 944

16 114 16 092 14.1Financials 74 300 3i Group PLC 630 706 113 400 Aberdeen Asset Management PLC 822 550 19 300 Admiral Group PLC 656 680 8 100 Allianz SE 1 611 1 494 46 200 AXA SA 1 376 1 187 4 600 Baloise Holding AG 739 664 22 200 BNP Paribas SA 1 444 1 273 224 500 CaixaBank SA 849 637 26 600 CNP Assurances 563 511 29 400 Danske Bank A/S 1 067 1 000 4 900 Deutsche Boerse AG 495 520 111 000 Direct Line Insurance Group PLC 805 664 4 900 Fonciere Des Regions 576 566 3 800 Gecina SA 642 672 26 800 Gjensidige Forsikring ASA 572 577 6 800 Groupe Bruxelles Lambert SA 725 721 5 200 Hannover Rueck SE 672 704 235 700 HSBC Holdings PLC 2 445 1 906 5 800 ICADE 549 533 91 500 ING Groep NV 1 440 1 212 71 200 Investec PLC 632 572 245 500 Legal & General Group PLC 1 210 813 106 900 Natixis SA 803 526 96 800 Nordea Bank AB 1 414 1 051 264 800 Old Mutual PLC 1 032 921 18 700 Sampo Oyj 1 135 986 78 600 Skandinaviska Enskilda Banken AB 1 110 879 133 900 Standard Life PLC 827 683 37 600 Swedbank AB 1 105 1 013 10 700 Swiss Re AG 1 319 1 209


Financials (cont.) 21 100 Tryg A/S $ 573 $ 487 3 400 Unibail-Rodamco SE 1 160 1 146

30 998 27 063 23.7Health Care 114 300 Coloplast A/S 11 002 11 032

11 002 11 032 9.6Industrials 24 100 Andritz AG 1 612 1 477 305 300 BAE Systems PLC 2 889 2 776 45 400 Metso OYJ 1 498 1 378 27 800 Randstad Holding NV 1 857 1 450 70 600 SGS SA 1 856 1 898 800 Skanska AB 2 035 2 374

11 747 11 353 9.9Information Technology 14 600 Telefonaktiebolaget LM Ericsson 144 144

144 144 0.1Materials 324 900 BHP Billiton PLC 5 663 5 318 60 300 Voestalpine AG 2 664 2 612

8 327 7 930 6.9Telecommunication Services 57 000 Proximus 2 511 2 342 5 100 Swisscom AG 3 557 3 282 171 800 Tele2 AB 2 080 1 937 151 500 Telenor ASA 3 074 3 234 532 800 TeliaSonera AB 3 194 3 244

14 416 14 039 12.3Utilities 386 900 Centrica PLC 1 728 1 515 56 400 Fortum OYJ 1 278 1 170 45 200 Gas Natural SDG SA 1 136 1 152 125 000 National Grid PLC 2 202 2 378 196 900 Snam SpA 1 341 1 523 59 500 SSE PLC 1 739 1 605 174 400 Terna Rete Elettrica Nazionale SpA 1 098 1 257

10 522 10 600 9.3TOTAL EUROPEAN EQUITIES 119 629 114 066 99.7Less: Transaction costs (286) – –TOTAL INVESTMENTS $ 119 343 114 066 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 310 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 114 376 100.0

179






2016December 31

2015



NAV PER UNIT $ 20.61 $ 22.33



INCOME (see note 3 in the generic notes)Dividends $ 3 438 $ 1 880 Other income (loss) (2) (1)Securities lending revenue (see note 7 in the generic notes) 82 37 Net realized gain (loss) on investments (2 164) (509)Net gain (loss) on foreign currencies and other net assets (40) 88 Change in unrealized gain (loss) on investments (6 067) (2 490)TOTAL INCOME (LOSS) (4 753) (995)EXPENSES (see notes – ETF Specific Information)Management fees 241 123 Independent Review Committee costs 2 –GST/HST 28 15 Transaction costs 214 296 Withholding tax 456 280 TOTAL EXPENSES 941 714 INCREASE (DECREASE) IN NAV $ (5 694) $ (1 709)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ (1.22) $ (0.78)

180





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ (5 694) $ (1 709)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 2 164 509 Change in unrealized loss (gain) on investments 6 067 2 490 (Increase) decrease in accrued receivables 2 (213)Increase (decrease) in accrued payables 10 40 Cost of investments purchased (110 350) (183 743)Proceeds on sales of investments 82 958 104 758 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (24 843) (77 868)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 32 255 78 689 Cash paid on redemption of redeemable units (5 337) –Distributions paid to holders of redeemable units (1 957) (808)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 24 961 $ 77 881 Net increase (decrease) in cash for the period 118 13 Cash (bank overdraft), beginning of period 63 6 CASH (BANK OVERDRAFT), END OF PERIOD $ 181 $ 19


181






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 94 892 $ 7 170 INCREASE (DECREASE) IN NAV (5 694) (1 709)Early redemption fees – –Proceeds from redeemable units issued 32 255 78 689 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (5 337) –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 26 918 78 689 Distributions from net income (1 740) (792)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 740) (792)NET INCREASE (DECREASE) IN NAV 19 484 76 188 NAV AT END OF PERIOD $ 114 376 $ 83 358

182



June 30, 2016





high-quality European dividend-paying equity securities that

will provide regular income and that have the potential for

long-term capital growth.






2016December 31

2015

European Equities Financials 23.7 26.4 Energy 14.1 12.1 Telecommunication Services 12.3 12.7 Industrials 9.9 9.8 Consumer Staples 9.8 9.5 Health Care 9.6 9.5 Utilities 9.3 8.7 Materials 6.9 6.0 Consumer Discretionary 4.0 5.1 Information Technology 0.1 –Other Net Assets 0.3 0.2 Total 100.0 100.0




CurrencyJune 30

2016December 31

2015

Euro 41.7 45.3Pound sterling 26.0 31.1Danish krone 10.9 4.0Swedish krona 8.9 10.0Swiss franc 6.6 9.3Norwegian krone 5.8 0.6Total 99.9 100.3







be material.







June 30 2016

December 31 2015

MSCI Europe Total Return Index (CAD) + or - 0.9 + or - 0.9























183



June 30, 2016









Opening units 4 250 350Issued number of units 1 550 3 500Reinvested number of units – –Redeemed number of units (250) –Ending number of units 5 550 3 850




June 30 2016

June 30 2015

$ % $ %






June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %





June 30 2016

December 31 2015

RBC Quant European Dividend Leaders (CAD Hedged) ETF 54.7 73.3

184



June 30, 2016




ETF UNITS 3 034 058 RBC Quant European Dividend Leaders ETF* $ 67 045 $ 62 527

TOTAL ETF UNITS 67 045 62 527 98.3Less: Transaction costs (4) – –TOTAL INVESTMENTS $ 67 041 62 527 98.3UNREALIZED GAIN ON FOREIGN EXCHANGE CONTRACTS (SCHEDULE A) 858 1.4TOTAL PORTFOLIO 63 385 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 214 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 63 599 100.0


Bought CAD 17 815 Sold GBP 9 759 @ 1.8255 15-Jul-2016 $ 871Bought GBP 471 Sold CAD 864 @ 1.8328 15-Jul-2016 (46)Bought CAD 1 259 Sold GBP 670 @ 1.8796 15-Jul-2016 96Bought GBP 425 Sold CAD 733 @ 1.7241 15-Jul-2016 5Bought GBP 831 Sold CAD 1 450 @ 1.7436 15-Jul-2016 (6)Bought CAD 577 Sold GBP 332 @ 1.7356 15-Jul-2016 –Bought CAD 6 973 Sold DKK 35 990 @ 0.1937 15-Jul-2016 (10)Bought CAD 526 Sold DKK 2 706 @ 0.1945 15-Jul-2016 1Bought DKK 5 635 Sold CAD 1 096 @ 0.1946 15-Jul-2016 (3)Bought CAD 403 Sold DKK 2 079 @ 0.1939 15-Jul-2016 –Bought CAD 29 353 Sold EUR 20 377 @ 1.4405 15-Jul-2016 (62)Bought EUR 625 Sold CAD 902 @ 1.4430 15-Jul-2016 –Bought CAD 1 272 Sold EUR 879 @ 1.4472 15-Jul-2016 3Bought EUR 1 245 Sold CAD 1 793 @ 1.4397 15-Jul-2016 5Bought EUR 2 432 Sold CAD 3 519 @ 1.4471 15-Jul-2016 (9)Bought CAD 1 236 Sold EUR 857 @ 1.4428 15-Jul-2016 (1)Bought CAD 3 883 Sold NOK 25 033 @ 0.1551 15-Jul-2016 (2)Bought NOK 1 174 Sold CAD 182 @ 0.1553 15-Jul-2016 –Bought CAD 185 Sold NOK 1 200 @ 0.1541 15-Jul-2016 (1)Bought NOK 3 387 Sold CAD 521 @ 0.1538 15-Jul-2016 5Bought CAD 207 Sold NOK 1 334 @ 0.1551 15-Jul-2016 –Bought CAD 6 095 Sold SEK 39 474 @ 0.1544 15-Jul-2016 41Bought SEK 1 822 Sold CAD 283 @ 0.1552 15-Jul-2016 (3)Bought CAD 358 Sold SEK 2 305 @ 0.1554 15-Jul-2016 5Bought SEK 6 468 Sold CAD 991 @ 0.1531 15-Jul-2016 2Bought CAD 177 Sold SEK 1 159 @ 0.1530 15-Jul-2016 –Bought CAD 4 543 Sold CHF 3 429 @ 1.3250 15-Jul-2016 (32)Bought CHF 116 Sold CAD 155 @ 1.3366 15-Jul-2016 –Bought CAD 157 Sold CHF 117 @ 1.3379 15-Jul-2016 –Bought CHF 120 Sold CAD 161 @ 1.3382 15-Jul-2016 –Bought CHF 421 Sold CAD 563 @ 1.3364 15-Jul-2016 (1)Bought CAD 210 Sold CHF 157 @ 1.3332 15-Jul-2016 –

TOTAL FOREIGN EXCHANGE $ 858



185





2016December 31

2015

ASSETSInvestments at fair value $ 62 527 $ 69 563 Cash 205 204 Due from investment dealers 5 871 –Unrealized gain on foreign exchange contracts 858 – Dividends receivable, interest accrued and other assets – 159 TOTAL ASSETS 69 461 69 926 LIABILITIESRedemptions payable 5 862 –Unrealized loss on foreign exchange contracts – 701 Distributions payable – 198 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 5 862 899 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 63 599 $ 69 027


NAV PER UNIT $ 20.52 $ 20.61




INCOME (see note 3 in the generic notes)Dividends $ 1 175 $ 658 Securities lending revenue (see note 7 in the generic notes) 11 –Net realized gain (loss) on investments (1 155) 19 Net gain (loss) on foreign currencies and other net assets 3 607 (933)Change in unrealized gain (loss) on investments (4 384) (1 960)Change in unrealized gain (loss) in value of forward contracts 1 558 (1 045)TOTAL INCOME (LOSS) 812 (3 261)EXPENSES (see notes – ETF Specific Information)Transaction costs 4 2 TOTAL EXPENSES 4 2 INCREASE (DECREASE) IN NAV $ 808 $ (3 263)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.24 $ (1.79)

186




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 808 $ (3 263)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 1 155 (19)Change in unrealized loss (gain) on investments and foreign exchange contracts 2 826 3 005 (Increase) decrease in accrued receivables 159 12 Increase (decrease) in accrued payables – –Cost of investments purchased (14 084) (70 720)Proceeds on sales of investments 9 709 2 526 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 573 (68 459)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 7 908 69 474 Cash paid on redemption of redeemable units (7 132) –Distributions paid to holders of redeemable units (1 348) (633)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ (572) $ 68 841 Net increase (decrease) in cash for the period 1 382 Cash (bank overdraft), beginning of period 204 23 CASH (BANK OVERDRAFT), END OF PERIOD $ 205 $ 405



187





Total2016 2015

NAV AT BEGINNING OF PERIOD $ 69 027 $ 5 239 INCREASE (DECREASE) IN NAV 808 (3 263)Early redemption fees – –Proceeds from redeemable units issued 7 908 69 474 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (12 994) –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS (5 086) 69 474 Distributions from net income (1 150) (621)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 150) (621)NET INCREASE (DECREASE) IN NAV (5 428) 65 590 NAV AT END OF PERIOD $ 63 599 $ 70 829


188



June 30, 2016


The investment objective of the ETF is to provide

unitholders with exposure, either directly or indirectly

through investment in other ETFs managed by RBC GAM,

to the performance of a diversified portfolio of high-quality

European dividend-paying equity securities that will provide

regular income and that have the potential for long-term

capital growth, while seeking to minimize the exposure to

currency fluctuations between foreign currencies and the

Canadian dollar.


The ETF invests in the RBC Quant European Dividend

Leaders ETF. The ETF’s exposure to financial instrument risk

is based on the underlying ETF asset mix.





2016December 31

2015

European Equities Financials 23.7 26.4 Energy 14.1 12.1 Telecommunication Services 12.3 12.7 Industrials 9.9 9.8 Consumer Staples 9.8 9.5 Health Care 9.6 9.5 Utilities 9.3 8.7 Materials 6.9 6.0 Consumer Discretionary 4.0 5.1 Information Technology 0.1 –Other Net Assets 0.3 0.2 Total 100.0 100.0











June 30 2016

December 31 2015

MSCI Europe Total Return Index (100% CAD Hedged) + or - 0.9 + or - 0.9








ETF units 62 527 – – 62 527 Derivatives – assets – 1 034 – 1 034 Derivatives – liabilities – (176) – (176)Total financial instruments 62 527 858 – 63 385 % of total portfolio 98.6 1.4 – 100.0


ETF units 69 563 – – 69 563 Derivatives – assets – 194 – 194 Derivatives – liabilities – (895) – (895)Total financial instruments 69 563 (701) – 68 862 % of total portfolio 101.0 (1.0) – 100.0








189



June 30, 2016








June 30 2016

December 31 2015


RBC Quant European Dividend Leaders ETF 98.3 54.7 100.8 73.3












Opening units 3 350 250 Issued number of units 400 3 050 Reinvested number of units – –Redeemed number of units (650) –Ending number of units 3 100 3 300





June 30 2016

June 30 2015

$ % $ %






June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %


190



June 30, 2016




INTERNATIONAL EQUITIESConsumer Discretionary 21 300 Bandai Namco Holdings Inc. $ 543 $ 710 77 800 Barratt Developments PLC 822 548 12 600 Berkeley Group Holdings PLC 738 552 25 200 Bridgestone Corp. 1 223 1 043 23 400 Fuji Heavy Industries Ltd. 1 240 1 030 7 900 Hugo Boss AG 1 098 580 51 500 Isuzu Motors Ltd. 774 814 231 700 ITV PLC 904 723 8 700 Next PLC 1 311 745 13 500 Nokian Renkaat OYJ 537 624 5 200 Paddy Power Betfair PLC 986 709 22 000 Persimmon PLC 829 553 13 700 ProSiebenSat.1 Media AG 748 775 59 620 RELX NV 1 106 1 343 176 000 Sands China Ltd. 1 110 765 28 900 Sumitomo Rubber Industries Ltd. 519 499 234 800 Taylor Wimpey PLC 967 539 30 400 USS Co., Ltd. 615 648

16 070 13 200 4.0Consumer Staples 240 500 Japan Tobacco Inc. 11 960 12 492 316 400 Unilever NV 17 818 19 132 466 000 Woolworths Ltd. 11 033 9 414

40 811 41 038 12.5Energy 336 200 Royal Dutch Shell PLC 11 836 11 951 230 800 Statoil ASA 4 990 5 162 47 600 Technip SA 3 675 3 352 140 700 Total SA 8 992 8 806 180 500 Woodside Petroleum Ltd. 5 805 4 685

35 298 33 956 10.3Financials 262 300 Aberdeen Asset Management PLC 1 281 1 272 43 400 Admiral Group PLC 1 466 1 530 38 500 AEON Financial Service Co., Ltd. 1 071 1 070 17 000 Allianz SE 3 568 3 135 300 600 Aozora Bank Ltd. 1 237 1 347 576 000 Ascendas Real Estate Investment Trust 1 258 1 378 131 900 Australia & New Zealand Banking Group Ltd. 3 964 3 076 95 600 AXA SA 2 840 2 456 9 700 Baloise Holding AG 1 451 1 399 289 500 Bank of East Asia Ltd. 1 365 1 444 112 900 Bank of Queensland Ltd. 1 381 1 156 130 800 Bendigo & Adelaide Bank Ltd. 1 490 1 214 489 800 BOC Hong Kong Holdings Ltd. 1 921 1 902 648 300 CapitaMall Trust 1 202 1 332 197 000 Chiba Bank Ltd. 1 320 1 200 57 100 CNP Assurances 1 225 1 097


Financials (cont.) 50 800 Commonwealth Bank of Australia $ 4 064 $ 3 653 9 200 Daito Trust Construction Co., Ltd. 1 252 1 938 56 800 Daiwa House Industry Co., Ltd. 1 582 2 144 61 300 Danske Bank A/S 2 513 2 085 154 400 DBS Group Holdings Ltd. 2 593 2 348 14 700 Deutsche Boerse AG 1 341 1 560 180 600 Dexus Property Group 1 314 1 575 225 400 Direct Line Insurance Group PLC 1 670 1 349 261 200 Fukuoka Financial Group Inc. 1 505 1 108 7 300 Gecina SA 1 214 1 290 57 900 Gjensidige Forsikring ASA 1 205 1 246 191 000 Gunma Bank Ltd. 939 895 88 900 Hang Seng Bank Ltd. 1 874 1 969 11 200 Hannover Rueck SE 1 291 1 516 217 000 Hiroshima Bank Ltd. 1 012 934 87 600 Japan Exchange Group Inc. 1 622 1 295 200 Japan Prime Realty Investment Corp. 846 1 117 306 500 Kerry Properties Ltd. 1 139 979 514 600 Legal & General Group PLC 2 375 1 704 113 300 National Australia Bank Ltd. 3 493 2 786 400 Nippon Prologis REIT Inc. 1 153 1 271 47 700 Nomura Real Estate Holdings Inc. 1 244 1 074 205 700 Nordea Bank AB 3 032 2 235 575 600 Old Mutual PLC 2 016 2 002 119 800 ORIX Corp. 2 147 1 984 141 900 Platinum Asset Management Ltd. 830 790 345 300 Resona Holdings Inc. 1 746 1 626 37 600 Sampo Oyj 2 187 1 982 75 000 SBI Holdings Inc. 1 100 958 154 300 Skandinaviska Enskilda Banken AB 2 250 1 725 285 100 Standard Life PLC 1 757 1 453 458 000 Sumitomo Mitsui Trust Holdings Inc. 2 217 1 912 81 800 Swedbank AB 2 363 2 203 21 500 Swiss Re AG 2 187 2 429 44 600 Tryg A/S 1 111 1 029 7 000 Unibail-Rodamco SE 2 243 2 360 520 200 Vicinity Centers 1 627 1 670 122 100 Westpac Banking Corp. 4 041 3 471

98 135 91 673 27.9Health Care 60 400 Coloplast A/S 5 762 5 830 499 400 GlaxoSmithKline PLC 13 653 13 911 208 600 Mitsubishi Tanabe Pharma Corp. 4 261 4 867

23 676 24 608 7.5Index Funds 100 299 iShares MSCI EAFE ETF 7 249 7 270

7 249 7 270 2.2

191


June 30, 2016




Industrials 221 600 ABB Ltd. $ 5 831 $ 5 648 39 900 Andritz AG 2 677 2 445 507 700 BAE Systems PLC 4 916 4 619 26 300 FANUC Corp. 5 961 5 505 43 700 Hino Motors Ltd. 696 559 58 000 Japan Airlines Co., Ltd. 2 522 2 417 75 500 Metso OYJ 2 455 2 290 46 300 Randstad Holding NV 3 094 2 415 1 400 SGS SA 3 636 4 154 118 800 Skanska AB 3 152 3 194

34 940 33 246 10.0Information Technology 22 400 Mixi Inc. 1 110 1 190 71 000 Seiko Epson Corp. 1 572 1 468 23 800 Tokyo Electron Ltd. 1 913 2 584

4 595 5 242 1.6Materials 1 663 100 Alumina Ltd. 2 103 2 083 364 000 BHP Billiton Ltd. 8 158 6 565 29 700 Chr Hansen Holding A/S 2 458 2 522 43 400 Maruichi Steel Tube Ltd. 1 527 1 959 617 000 Mitsubishi Materials Corp. 2 593 1 898 147 900 Nippon Steel & Sumitomo Metal Corp. 3 724 3 666 57 100 Voestalpine AG 2 764 2 473

23 327 21 166 6.4Telecommunication Services 865 400 Bezeq The Israeli Telecommunication Corp., Ltd. 2 056 2 228 148 400 NTT DoCoMo Inc. 3 463 5 197 2 480 000 PCCW Ltd. 2 108 2 159 60 600 Proximus 2 604 2 490 1 142 900 Singapore Telecommunications Ltd. 4 156 4 555 770 000 Spark New Zealand Ltd. 2 088 2 528 528 700 StarHub Ltd. 1 870 1 934 5 400 Swisscom AG 3 713 3 475 159 600 Telenor ASA 3 414 3 408 716 900 Telstra Corp., Ltd. 3 967 3 854

29 439 31 828 9.7


Utilities 620 000 Centrica PLC $ 2 971 $ 2 427 204 900 CLP Holdings Ltd. 2 179 2 710 44 400 Enagas SA 1 644 1 749 65 300 Endesa SA 1 716 1 699 187 600 National Grid PLC 3 271 3 570 367 500 Osaka Gas Co., Ltd. 1 794 1 826 176 000 Power Assets Holdings Ltd. 2 149 2 093 283 900 Snam SpA 1 884 2 195 91 900 SSE PLC 2 647 2 479 264 300 Terna Rete Elettrica Nazionale SpA 1 636 1 904 374 000 Tokyo Gas Co., Ltd. 1 968 1 990

23 859 24 642 7.5TOTAL INTERNATIONAL EQUITIES 337 399 327 869 99.6Less: Transaction costs (570) – –TOTAL INVESTMENTS $ 336 829 327 869 99.6OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1 235 0.4NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 329 104 100.0

192






2016December 31

2015

ASSETSInvestments at fair value $ 327 869 $ 301 261 Cash 419 748 Due from investment dealers 3 120 181 Subscriptions receivable 5 193 –Dividends receivable, interest accrued and other assets 976 543 TOTAL ASSETS 337 577 302 733 LIABILITIESDue to investment dealers 5 177 – Redemptions payable 3 135 –Distributions payable – 770 Accounts payable and accrued expenses 161 145 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 8 473 915 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 329 104 $ 301 818


NAV PER UNIT $ 21.30 $ 23.13



INCOME (see note 3 in the generic notes)Dividends $ 9 143 $ 6 129 Other income (loss) (1) (2)Securities lending revenue (see note 7 in the generic notes) 154 128 Net realized gain (loss) on investments (4 284) 3 280 Net gain (loss) on foreign currencies and other net assets (171) 66 Change in unrealized gain (loss) on investments (21 528) 5 659 TOTAL INCOME (LOSS) (16 687) 15 260 EXPENSES (see notes – ETF Specific Information)Management fees 760 495 Independent Review Committee costs 2 1 GST/HST 70 40 Transaction costs 378 394 Withholding tax 1 441 894 TOTAL EXPENSES 2 651 1 824 INCREASE (DECREASE) IN NAV $ (19 338) $ 13 436 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ (1.35) $ 1.50

193





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ (19 338) $ 13 436 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 4 284 (3 280)Change in unrealized loss (gain) on investments 21 528 (5 659)(Increase) decrease in accrued receivables (433) (602)Increase (decrease) in accrued payables 16 53 Cost of investments purchased (235 450) (272 236)Proceeds on sales of investments 185 268 176 847 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (44 125) (91 441)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 65 075 98 397 Cash paid on redemption of redeemable units (15 085) (3 347)Distributions paid to holders of redeemable units (6 194) (3 720)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 43 796 $ 91 330 Net increase (decrease) in cash for the period (329) (111)Cash (bank overdraft), beginning of period 748 272 CASH (BANK OVERDRAFT), END OF PERIOD $ 419 $ 161


194






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 301 818 $ 132 174 INCREASE (DECREASE) IN NAV (19 338) 13 436 Early redemption fees – –Proceeds from redeemable units issued 70 268 98 397 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (18 220) (3 347)NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 52 048 95 050 Distributions from net income (5 424) (3 395)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (5 424) (3 395)NET INCREASE (DECREASE) IN NAV 27 286 105 091 NAV AT END OF PERIOD $ 329 104 $ 237 265

195



June 30, 2016





high-quality dividend-paying equity securities in markets in

Europe, Australasia and the Far East (EAFE) that will provide


capital growth.






2016December 31

2015

International Equities Financials 27.9 31.7 Consumer Staples 12.5 11.9 Energy 10.3 9.0 Industrials 10.1 9.8 Telecommunication Services 9.7 9.9 Health Care 7.5 7.6 Utilities 7.5 7.1 Materials 6.4 6.5 Consumer Discretionary 4.0 4.7 Index Funds 2.1 – Information Technology 1.6 1.6 Other Net Assets 0.4 0.2 Total 100.0 100.0




CurrencyJune 30

2016December 31

2015

Japanese yen 22.7 18.3Euro 21.5 24.4Pound sterling 15.9 18.2Australian dollar 14.1 12.9Swiss franc 5.2 7.4Hong Kong dollar 4.3 5.2Danish krone 3.5 3.6Singapore dollar 3.5 3.4Norwegian krone 3.0 0.4Swedish krona 2.8 4.3United States dollar 1.6 –New Zealand dollar 0.8 1.1Israeli new shekel 0.7 0.9Total 99.6 100.1







be material.







June 30 2016

December 31 2015

MSCI EAFE Total Return Index (CAD) + or - 0.9 + or - 1.0





















December 31, 2015.

196



June 30, 2016








Opening units 13 050 6 500Issued number of units 3 250 4 400Reinvested number of units – –Units consolidated* – –Redeemed number of units (850) (150)Ending number of units 15 450 10 750

* The units of the ETF are consolidated immediately after a distribution is reinvested so that the total number of units outstanding of the ETF after consolidation is the same as before the distribution.




June 30 2016

June 30 2015

$ % $ %






June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %






June 30 2016

December 31 2015

RBC Quant EAFE Dividend Leaders (CAD Hedged) ETF 27.9 22.7RBC Strategic Global Dividend Leaders ETF 0.2 –Total 28.1 22.7

197



June 30, 2016




ETF UNITS 4 303 283 RBC Quant EAFE Dividend Leaders ETF* $ 95 182 $ 91 665

TOTAL ETF UNITS 95 182 91 665 100.9Less: Transaction costs (3) – –TOTAL INVESTMENTS $ 95 179 91 665 100.9UNREALIZED LOSS ON FOREIGN EXCHANGE CONTRACTS (SCHEDULE A) (1 121) (1.2)TOTAL PORTFOLIO 90 544 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 293 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 90 837 100.0


Bought CAD 12 737 Sold AUD 13 522 @ 0.9420 15-Jul-2016 $ (330)Bought CAD 14 409 Sold GBP 7 893 @ 1.8255 15-Jul-2016 704Bought CAD 496 Sold GBP 264 @ 1.8796 15-Jul-2016 38Bought GBP 356 Sold CAD 620 @ 1.7436 15-Jul-2016 (3)Bought CAD 849 Sold GBP 489 @ 1.7356 15-Jul-2016 –Bought CAD 3 217 Sold DKK 16 606 @ 0.1937 15-Jul-2016 (5)Bought DKK 731 Sold CAD 143 @ 0.1953 15-Jul-2016 (1)Bought CAD 139 Sold DKK 717 @ 0.1943 15-Jul-2016 –Bought DKK 775 Sold CAD 151 @ 0.1946 15-Jul-2016 –Bought CAD 96 Sold DKK 493 @ 0.1940 15-Jul-2016 –Bought CAD 20 498 Sold EUR 14 230 @ 1.4405 15-Jul-2016 (43)Bought EUR 582 Sold CAD 840 @ 1.4430 15-Jul-2016 –Bought CAD 659 Sold EUR 456 @ 1.4450 15-Jul-2016 1Bought EUR 586 Sold CAD 844 @ 1.4397 15-Jul-2016 2Bought EUR 412 Sold CAD 596 @ 1.4471 15-Jul-2016 (1)Bought CAD 928 Sold EUR 643 @ 1.4428 15-Jul-2016 –Bought CAD 3 871 Sold HKD 23 587 @ 0.1641 15-Jul-2016 (78)Bought CAD 21 067 Sold JPY 1 765 962 @ 0.0119 15-Jul-2016 (1 299)Bought JPY 63 895 Sold CAD 777 @ 0.0122 15-Jul-2016 32Bought JPY 50 871 Sold CAD 629 @ 0.0124 15-Jul-2016 15

SCHEDULE A (cont.)Foreign Exchange Contracts Unrealized Contracts Maturity Date Gain (Loss)

Bought CAD 807 Sold JPY 65 798 @ 0.0123 15-Jul-2016 $ (26)Bought JPY 109 788 Sold CAD 1 417 @ 0.0129 15-Jul-2016 (26)Bought CAD 817 Sold JPY 64 559 @ 0.0127 15-Jul-2016 –Bought CAD 2 699 Sold NOK 17 398 @ 0.1551 15-Jul-2016 (1)Bought NOK 616 Sold CAD 96 @ 0.1553 15-Jul-2016 –Bought CAD 113 Sold NOK 735 @ 0.1541 15-Jul-2016 (1)Bought NOK 720 Sold CAD 111 @ 0.1538 15-Jul-2016 1Bought CAD 141 Sold NOK 912 @ 0.1551 15-Jul-2016 –Bought CAD 3 072 Sold SGD 3 272 @ 0.9389 15-Jul-2016 (84)Bought CAD 2 833 Sold SEK 18 349 @ 0.1544 15-Jul-2016 18Bought SEK 841 Sold CAD 130 @ 0.1550 15-Jul-2016 (1)Bought CAD 115 Sold SEK 740 @ 0.1554 15-Jul-2016 1Bought SEK 1 768 Sold CAD 271 @ 0.1531 15-Jul-2016 –Bought CAD 124 Sold SEK 809 @ 0.1533 15-Jul-2016 –Bought CAD 4 858 Sold CHF 3 667 @ 1.3250 15-Jul-2016 (34)Bought CHF 142 Sold CAD 190 @ 1.3442 15-Jul-2016 (1)Bought CAD 206 Sold CHF 154 @ 1.3379 15-Jul-2016 1Bought CHF 112 Sold CAD 150 @ 1.3384 15-Jul-2016 –

TOTAL FOREIGN EXCHANGE $ (1 121)



198





2016December 31

2015

ASSETSInvestments at fair value $ 91 665 $ 68 423 Cash 293 237 Dividends receivable, interest accrued and other assets – 174 TOTAL ASSETS 91 958 68 834 LIABILITIESUnrealized loss on foreign exchange contracts 1 121 1 014 Distributions payable – 269 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 1 121 1 283 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 90 837 $ 67 551


NAV PER UNIT $ 20.41 $ 21.44




INCOME (see note 3 in the generic notes)Dividends $ 1 444 $ 492 Securities lending revenue (see note 7 in the generic notes) 9 4 Net realized gain (loss) on investments (359) 25 Net gain (loss) on foreign currencies and other net assets 2 731 181 Change in unrealized gain (loss) on investments (5 667) (529)Change in unrealized gain (loss) in value of forward contracts (106) (700)TOTAL INCOME (LOSS) (1 948) (527)EXPENSES (see notes – ETF Specific Information)Transaction costs 4 1 TOTAL EXPENSES 4 1 INCREASE (DECREASE) IN NAV $ (1 952) $ (528)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ (0.49) $ (0.43)

199




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ (1 952) $ (528)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 359 (25)Change in unrealized loss (gain) on investments and foreign exchange contracts 5 773 1 229 (Increase) decrease in accrued receivables 174 8 Increase (decrease) in accrued payables – –Cost of investments purchased (38 575) (46 235)Proceeds on sales of investments 9 308 777 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (24 913) (44 774)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 33 414 45 489 Cash paid on redemption of redeemable units (6 781) –Distributions paid to holders of redeemable units (1 664) (469)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 24 969 $ 45 020 Net increase (decrease) in cash for the period 56 246 Cash (bank overdraft), beginning of period 237 12 CASH (BANK OVERDRAFT), END OF PERIOD $ 293 $ 258



200





Total2016 2015

NAV AT BEGINNING OF PERIOD $ 67 551 $ 3 189 INCREASE (DECREASE) IN NAV (1 952) (528)Early redemption fees – –Proceeds from redeemable units issued 33 414 45 489 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (6 781) –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 26 633 45 489 Distributions from net income (1 395) (457)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (1 395) (457)NET INCREASE (DECREASE) IN NAV 23 286 44 504 NAV AT END OF PERIOD $ 90 837 $ 47 693


201



June 30, 2016




in other ETFs managed by RBC GAM, to the performance

of a diversified portfolio of high-quality dividend-paying

equity securities in markets in Europe, Australasia and the

Far East (EAFE) that will provide regular income and that have

the potential for long-term capital growth, while seeking to

minimize the exposure to currency fluctuations between foreign

currencies and the Canadian dollar.


The ETF invests in the RBC Quant EAFE Dividend Leaders

ETF. The ETF’s exposure to financial instrument risk is based

on the underlying ETF asset mix.





2016December 31

2015

International Equities Financials 27.9 31.7 Consumer Staples 12.5 11.9 Energy 10.3 9.0 Industrials 10.1 9.8 Telecommunication Services 9.7 9.9 Health Care 7.5 7.6 Utilities 7.5 7.1 Materials 6.4 6.5 Consumer Discretionary 4.0 4.7 Index Funds 2.1 – Information Technology 1.6 1.6 Other Net Assets 0.4 0.2 Total 100.0 100.0











June 30 2016

December 31 2015

MSCI EAFE Total Return Index (100% CAD Hedged) + or - 0.8 + or - 0.8


















202



June 30, 2016








June 30 2016

December 31 2015


RBC Quant EAFE Dividend Leaders ETF 100.9 27.9 101.3 22.7












Opening units 3 150 150 Issued number of units 1 650 2 000 Reinvested number of units – –Redeemed number of units (350) –Ending number of units 4 450 2 150





June 30 2016

June 30 2015

$ % $ %






June 30 2016

June 30 2015

Fair value of securities loaned 2 –Fair value of collateral received 2 –





June 30 2016

June 30 2015

$ % $ %


203



June 30, 2016




INTERNATIONAL EQUITIESConsumer Discretionary 172 100 Astra International Tbk PT $ 122 $ 125 63 900 Astro Malaysia Holdings Bhd 58 60 1 700 Bajaj Auto Ltd. 84 88 45 900 BEC World PCL 73 39 89 000 Belle International Holdings Ltd. 121 68 44 075 Berjaya Sports Toto Bhd 50 43 6 800 British American Tobacco Malaysia BHD 142 115 29 000 Cheng Shin Rubber Industry Co., Ltd. 76 79 800 Coway Co., Ltd. 81 94 2 400 Dongsuh Co., Ltd. 96 90 73 500 Great Wall Motor Co., Ltd. 152 79 5 100 Hanon Systems 47 60 1 200 Hero MotoCorp Ltd. 64 73 1 900 Kangwon Land Inc. 78 89 10 000 Merida Industry Co., Ltd. 50 55 5 300 Mr. Price Group Ltd. 78 97 7 100 OPAP SA 69 64 199 500 Surya Citra Media Tbk PT 59 65 5 900 Tofas Turk Otomobil Fabrikasi AS 48 63 9 300 Truworths International Ltd. 80 71

1 628 1 517 6.4Consumer Staples 11 900 Hindustan Unilever Ltd. 202 206 31 600 ITC Ltd. 206 224 46 700 Kimberly-Clark de Mexico SAB de CV 135 142 1 500 KT&G Corp. 156 231 6 500 Spar Group Ltd. 114 116 68 200 Wal-Mart de Mexico SAB de CV 202 211

1 015 1 130 4.7Energy 17 100 Bharat Petroleum Corp., Ltd. 294 353 866 000 China Petroleum & Chemical Corp. 818 812 140 000 China Shenhua Energy Co., Ltd. 344 334 46 000 Coal India Ltd. 292 277 99 700 Oil & Natural Gas Corp. Ltd. 471 415 8 500 Qatar Gas Transport Co., Ltd. 73 70 19 400 Sasol Ltd. 752 683 4 500 S-Oil Corp. 442 384 138 200 Thai Oil PCL 341 306 14 500 Tupras Turkiye Petrol Rafinerileri AS 434 417

4 261 4 051 16.9Financials 61 100 Abu Dhabi Commercial Bank PJSC 151 131 380 700 Agricultural Bank of China Ltd. 228 180 27 800 Banco Bradesco SA 234 284 847 736 Banco de Chile 120 118 1 835 Banco de Credito e Inversiones 105 103 16 900 Banco Santander Brasil SA 92 125 11 700 Bancolombia SA 133 133


Financials (cont.) 186 500 Bank Mandiri Persero Tbk PT $ 161 $ 175 277 500 Bank Negara Indonesia Persero Tbk PT 115 142 540 800 Bank of China Ltd. 364 280 2 900 Bank Pekao SA 157 130 184 500 Bank Rakyat Indonesia Persero Tbk PT 186 196 11 900 Barclays Africa Group Ltd. 158 152 28 300 BM&FBovespa SA 173 206 48 000 Chailease Holding Co., Ltd. 96 101 194 000 China Citic Bank Corp. Ltd. 146 153 414 000 China Construction Bank Corp. 317 355 41 600 China Pacific Insurance Group Co., Ltd. 181 182 54 000 China Resources Land Ltd. 159 164 42 000 China Vanke Co., Ltd. 127 107 42 600 Compartamos SAB de CV 98 97 15 600 Coronation Fund Managers Ltd. 137 93 982 Credicorp Ltd. 146 197 89 700 Emlak Konut Gayrimenkul Yatirim Ortakligi AS 103 116 143 000 Evergrande Real Estate Group Ltd. 129 114 98 000 Far East Horizon Ltd. 97 99 53 600 Fibra Uno Administracion SA de CV 149 147 28 500 First Gulf Bank PJSC 132 127 67 900 Growthpoint Properties Ltd. 148 155 206 200 Grupo Aval Acciones y Valores 95 109 48 000 Highwealth Construction Corp. 91 102 11 200 Hyprop Investments Ltd. 136 129 31 200 ICICI Bank Ltd. 166 144 9 100 Indiabulls Housing Finance Ltd. 115 117 444 200 Industrial & Commercial Bank of China Ltd. 394 319 9 100 Industrial Bank of Korea 121 114 11 400 Investec Ltd. 107 91 64 040 Itausa - Investimentos Itau SA 172 197 8 400 Liberty Holdings Ltd. 125 90 68 900 Malayan Banking Bhd 206 181 10 200 Masraf Al Rayan QSC 142 124 50 800 MMI Holdings Ltd. 135 102 33 700 National Bank of Abu Dhabi PJSC 108 115 8 000 Nedbank Group Ltd. 180 132 24 100 Power Finance Corp., Ltd. 109 79 12 300 Powszechny Zaklad Ubezpieczen SA 183 115 2 800 Qatar Islamic Bank SAQ 103 96 31 400 Rand Merchant Investment Holdings Ltd. 105 115 135 100 Redefine Properties Ltd. 126 136 10 900 Resilient REIT Ltd. 115 127 23 700 Rural Electrification Corp., Ltd. 118 79 32 000 Sanlam Ltd. 164 171 62 700 Shimao Property Holdings Ltd. 160 102 4 800 Shinhan Financial Group Co., Ltd. 221 206

204


June 30, 2016




Financials (cont.) 33 000 Siam Commercial Bank PCL $ 193 $ 170 112 000 Sunac China Holdings Ltd. 97 90

8 529 8 114 33.8Diversified Financials 78 700 AMMB Holdings BHD 157 113 52 300 FirstRand Ltd. 262 208 26 900 RMB Holdings Ltd. 168 134

587 455 1.9Health Care 13 500 Life Healthcare Group Holdings Ltd. 56 43 5 400 Odontoprev SA 24 29 88 400 Petkim Petrokimya Holding AS 163 153

243 225 0.9Index Funds 19 724 iShares MSCI Emerging Markets ETF 872 880

872 880 3.7Industrials 16 100 Barloworld Ltd. 121 104 14 500 CCR SA 88 99 262 900 DMCI Holdings Inc. 104 91 46 095 Enka Insaat ve Sanayi AS 82 91 6 400 Grupo Aeroportuario del Pacifico SAB de CV 58 85 4 100 Industries Qatar QSC 168 143 38 300 Jiangsu Expressway Co., Ltd. 60 69 1 300 KEPCO Plant Service & Engineering Co., Ltd. 134 95 84 300 Sinopec Engineering Group Co., Ltd. 91 99 8 200 TAV Havalimanlari Holding AS 71 46 86 100 United Tractors Tbk PT 136 125

1 113 1 047 4.4Information Technology 15 000 Casetek Holdings Ltd. 92 68 31 000 Chicony Electronics Co., Ltd. 106 90 36 900 Delta Electronics Thailand PCL 102 93 11 200 HCL Technologies Ltd. 189 157 11 900 Infosys Ltd. 273 268 25 000 Novatek Microelectronics Corp. 142 120 54 500 Pegatron Corp. 144 149 9 000 Phison Electronics Corp. 93 100 18 000 Simplo Technology Co., Ltd. 103 82 20 000 Transcend Information Inc. 80 79 46 000 Vanguard International Semiconductor Corp. 94 98 14 200 Wipro Ltd. 161 152 68 000 WPG Holdings Ltd. 104 103

1 683 1 559 6.5Materials 22 900 Braskem SA 190 177 119 200 Eregli Demir ve Celik Fabrikalari TAS 213 219 133 800 Indocement Tunggal Prakarsa Tbk PT 258 222 61 400 Lafarge Malaysia Bhd 186 155 252 700 Semen Indonesia Persero Tbk PT 282 232 342 000 Sinopec Shanghai Petrochemical Co., Ltd. 212 203

1 341 1 208 5.0


Telecommunication Services 39 400 Advanced Info Service PCL $ 307 $ 230 39 000 China Mobile Ltd. 553 579 74 000 Chunghwa Telecom Co., Ltd. 291 347 150 400 DiGi.Com Bhd 287 232 69 000 Far EasTone Telecommunications Co., Ltd. 204 215 2 600 Globe Telecom Inc. 179 170 106 900 Maxis Bhd 231 203 53 000 Taiwan Mobile Co., Ltd. 227 240 914 000 Telekomunikasi Indonesia Persero Tbk PT 330 358 50 200 Turk Telekomunikasyon AS 160 137 43 100 Turkcell Iletisim Hizmetleri AS 233 206 15 800 Vodacom Group Ltd. 215 235

3 217 3 152 13.1Utilities 50 700 Aboitiz Power Corp. 61 64 90 000 Aguas Andinas SA 66 67 372 000 Energy Development Corp. 64 57 395 700 Enersis Americas SA 114 87 19 500 Glow Energy PCL 62 62 318 700 Perusahaan Gas Negara Persero Tbk PT 129 73 6 400 Transmissora Alianca de Energia Eletrica SA 53 50

549 460 1.9TOTAL INTERNATIONAL EQUITIES 25 038 23 798 99.2Less: Transaction costs (39) – –TOTAL INVESTMENTS $ 24 999 23 798 99.2OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 195 0.8NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 23 993 100.0

205





2016December 31

2015

ASSETSInvestments at fair value $ 23 798 $ 20 082 Cash 42 97 Subscriptions receivable 877 –Dividends receivable, interest accrued and other assets 168 42 TOTAL ASSETS 24 885 20 221 LIABILITIESDue to investment dealers 877 – Distributions payable – 58 Accounts payable and accrued expenses 15 14 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 892 72 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 23 993 $ 20 149


NAV PER UNIT $ 17.77 $ 18.32




INCOME (see note 3 in the generic notes)Dividends $ 696 $ 442 Other income (loss) (2) (3)Securities lending revenue (see note 7 in the generic notes) 1 –Net realized gain (loss) on investments (1 560) 98 Net gain (loss) on foreign currencies and other net assets (36) (16)Change in unrealized gain (loss) on investments 1 017 (277)TOTAL INCOME (LOSS) 116 244 EXPENSES (see notes – ETF Specific Information)Management fees 69 52 GST/HST 8 7 Transaction costs 36 72 Withholding tax 66 52 TOTAL EXPENSES 179 183 INCREASE (DECREASE) IN NAV $ (63) $ 61 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ (0.05) $ 0.08

206




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ (63) $ 61 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 1 560 (98)Change in unrealized loss (gain) on investments (1 017) 277 (Increase) decrease in accrued receivables (126) (137)Increase (decrease) in accrued payables 1 12 Cost of investments purchased (21 467) (46 309)Proceeds on sales of investments 18 085 28 868 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (3 027) (17 326)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 7 793 16 373 Cash paid on redemption of redeemable units (4 402) –Distributions paid to holders of redeemable units (419) (251)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 2 972 $ 16 122 Net increase (decrease) in cash for the period (55) (1 204)Cash (bank overdraft), beginning of period 97 834 CASH (BANK OVERDRAFT), END OF PERIOD $ 42 $ (370)

Interest received (paid) $ – $ –Dividends received, net of withholding taxes $ 504 $ 253


207





Total2016 2015

NAV AT BEGINNING OF PERIOD $ 20 149 $ 6 108 INCREASE (DECREASE) IN NAV (63) 61 Early redemption fees – –Proceeds from redeemable units issued 8 670 16 373 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (4 402) –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 4 268 16 373 Distributions from net income (361) (228)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (361) (228)NET INCREASE (DECREASE) IN NAV 3 844 16 206 NAV AT END OF PERIOD $ 23 993 $ 22 314


208



June 30, 2016



with exposure to the performance of a diversified portfolio

of high-quality emerging market dividend-paying equity

securities that will provide regular income and that have the

potential for long-term capital growth.






2016December 31

2015

Equities Financials 33.8 38.4 Energy 16.9 16.0 Telecommunication Services 13.1 12.5 Information Technology 6.5 7.3 Consumer Discretionary 6.4 6.2 Materials 5.0 6.3 Consumer Staples 4.7 5.4 Industrials 4.4 4.7 Index Funds 3.7 – Utilities 1.9 2.7 Diversified Financials 1.9 – Health Care 0.9 0.2 Other Net Assets 0.8 0.3 Total 100.0 100.0




CurrencyJune 30

2016December 31

2015

Hong Kong dollar 18.3 15.0South African rand 13.3 12.1Indian rupee 10.7 17.4New Taiwan dollar 8.5 10.3Indonesian rupiah 7.1 3.8Turkish new lira 6.0 2.3South Korean won 5.7 6.3Brazilian real 4.9 7.1Malaysian ringgit 4.6 5.8United States dollar 4.5 0.9Thailand baht 3.7 3.6Mexican peso 2.8 5.1Qatari rial 1.8 2.0Chilean peso 1.6 2.0Philippine peso 1.6 2.0UAE dirham 1.6 1.5

CurrencyJune 30

2016December 31

2015

Polish zloty 1.1 2.2Colombian peso 1.0 –Chinese renminbi 0.5 –Euro 0.3 0.5Total 99.6 99.9







be material.







June 30 2016

December 31 2015

MSCI Emerging Markets Total Return Index (CAD) + or - 0.9 + or - 0.9















209



June 30, 2016


















Opening units 1 100 300 Issued number of units 500 750 Reinvested number of units – –Redeemed number of units (250) –Ending number of units 1 350 1 050




June 30 2016

June 30 2015

$ % $ %






June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %

Gross revenue 1 100 – –RBC IS (paid) – – – –Tax withheld – – – –ETF revenue 1 100 – –




June 30 2016

December 31 2015

RBC Strategic Global Dividend Leaders ETF 1.9 –

210



June 30, 2016




ETF UNITS 28 079 RBC Quant Canadian Dividend Leaders ETF* $ 735 $ 761 35 557 RBC Quant EAFE Dividend Leaders ETF* 594 679 21 810 RBC Quant Emerging Markets Dividend Leaders ETF* 484 465 11 278 RBC Quant U.S. Dividend Leaders ETF* 195 200



211





2016

ASSETSInvestments at fair value $ 2 105 Cash 5 TOTAL ASSETS 2 110 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 2 110






INCOME (see note 3 in the generic notes)Dividends $ 35 Securities lending revenue (see note 7 in the generic notes) 1 Net realized gain (loss) on investments 8 Change in unrealized gain (loss) on investments 97 TOTAL INCOME (LOSS) 141 EXPENSES (see notes – ETF Specific Information)Management fees 1 TOTAL EXPENSES 1 INCREASE (DECREASE) IN NAV $ 140 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 1.46

212




For the period ended June 30 (see note 2 in the generic notes) 2016CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 140 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes –Net realized loss (gain) on investments (8)Change in unrealized loss (gain) on investments (97)(Increase) decrease in accrued receivables –Increase (decrease) in accrued payables –Cost of investments purchased (2 291)Proceeds on sales of investments 291 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (1 965)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 2 000 Cash paid on redemption of redeemable units –Distributions paid to holders of redeemable units (30)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 1 970 Net increase (decrease) in cash for the period 5 Cash (bank overdraft), beginning of period – CASH (BANK OVERDRAFT), END OF PERIOD $ 5

Interest received (paid) $ – Dividends received, net of withholding taxes $ 35


213





Total2016

NAV AT BEGINNING OF PERIOD $ –INCREASE (DECREASE) IN NAV 140 Early redemption fees –Proceeds from redeemable units issued 2 000 Reinvestments of distributions to holders of redeemable units –Redemption of redeemable units –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 2 000 Distributions from net income (30)Distributions from net gains –Distributions from capital –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (30)NET INCREASE (DECREASE) IN NAV 2 110 NAV AT END OF PERIOD $ 2 110


214



June 30, 2016




in other mutual funds managed by RBC GAM or an affiliate,

to the performance of a diversified portfolio of high-quality

global dividend-paying equity securities that will provide


capital growth.







2016

Equities Financials 31.5 Energy 12.4 Industrials 8.8 Consumer Staples 8.7 Telecommunication Services 7.9 Utilities 7.6 Health Care 6.6 Consumer Discretionary 5.3 Information Technology 5.1 Materials 5.0 Index Funds 0.5 Diversified Financials 0.4Other Net Assets 0.2Total 100.0



or weakened by 1% in relation to all other currencies, with


decreased or increased, respectively, by approximately 0.6%. In

practice, actual results could differ from this sensitivity analysis

and the difference could be material.


Due to the fact that the ETF has been in existence for

less than six months, the impact on net assets of the ETF

using the historical correlation between the ETF’s return

and a broad-based index is not disclosed because there

is insufficient data and any resulting calculation could be

materially misleading.



June 30, 2016.




















June 30 2016

NAV Ownership

RBC Quant Canadian Dividend Leaders ETF 36.1 0.8RBC Quant EAFE Dividend Leaders ETF 32.2 0.2RBC Quant Emerging Markets Dividend Leaders ETF 22.0 1.9RBC Quant U.S. Dividend Leaders ETF 9.5 0.1


215



June 30, 2016









Opening units –Issued number of units 100 Reinvested number of units –Redeemed number of units –Ending number of units 100



June 30 2016

Fair value of securities loaned 192Fair value of collateral received 196





June 30 2016

$ %

Gross revenue 1 100RBC IS (paid) – –Tax withheld – –ETF revenue 1 100

216



June 30, 2016




CANADIAN EQUITIESConsumer Discretionary 638 BRP Inc. $ 15 $ 13 377 Canadian Tire Corp., Ltd. 46 53 583 Cineplex Inc. 28 30 518 Cogeco Communications Inc. 33 35 464 Dorel Industries Inc. 16 16 1 159 EnerCare Inc. 18 20 786 Great Canadian Gaming Corp. 16 14 1 436 Magna International Inc. 85 65 1 291 Thomson Reuters Corp. 65 67 528 Uni-Select Inc. 16 17

338 330 6.0Consumer Staples 1 438 Cott Corp. 28 26 373 George Weston Ltd. 40 42 1 181 Jean Coutu Group PJC Inc. 25 24 1 014 Loblaw Cos., Ltd. 68 70 736 North West Co., Inc. 21 22 1 440 Saputo Inc. 55 55

237 239 4.3Energy 2 820 Advantage Oil & Gas Ltd. 21 20 1 155 Canadian Energy Services & Technology Corp. 5 5 3 226 Canadian Natural Resources Ltd. 106 129 4 118 Cenovus Energy Inc. 80 74 2 873 Crescent Point Energy Corp. 63 59 3 099 Crew Energy Inc. 12 18 2 324 Enbridge Inc. 122 127 3 376 Enerplus Corp. 24 29 681 Ensign Energy Services Inc. 6 5 1 552 Freehold Royalties Ltd. 18 18 1 000 Gibson Energy Inc. 16 15 5 405 Gran Tierra Energy Inc. 17 23 2 858 Husky Energy Inc. 42 45 1 972 Inter Pipeline Ltd. 53 54 1 997 Parex Resources Inc. 20 25 64 PrairieSky Royalty Ltd. 1 2 1 306 Precision Drilling Corp. 9 9 291 ShawCor Ltd. 8 9 4 245 Suncor Energy Inc. 148 152 5 727 Surge Energy Inc. 13 15 2 012 TransCanada Corp. 101 118 2 470 Whitecap Resources Inc. 22 24

907 975 17.6Financials 494 Allied Properties Real Estate Investment Trust 18 19 1 089 Artis Real Estate Investment Trust 15 15 5 040 Bank of Montreal 386 413 7 891 Bank of Nova Scotia 480 500


Financials (cont.) 2 894 Brookfield Asset Management Inc. $ 124 $ 124 895 Brookfield Property Partners LP 28 26 3 568 Canadian Imperial Bank of Commerce 339 46 446 Canadian Real Estate Investment Trust 18 22 997 Chartwell Retirement Residences 13 16 1 040 CI Financial Corp. 33 28 1 098 Cominar Real Estate Investment Trust 17 18 1 303 Dream Global Real Estate Investment Trust 12 12 376 Genworth MI Canada Inc. 11 12 374 Granite Real Estate Investment Trust 15 14 1 271 H&R Real Estate Investment Trust 28 29 474 Home Capital Group Inc. 16 15 575 IGM Financial Inc. 23 20 1 451 Industrial Alliance Insurance & Financial Services Inc. 60 59 3 267 Power Corp. of Canada 102 90 2 563 Power Financial Corp. 87 76 2 077 Pure Industrial Real Estate Trust 10 11 3 428 Sun Life Financial Inc. 139 145 231 TMX Group Ltd. 12 12

1 986 2 022 36.5Health Care 921 Extendicare Inc. 9 7 830 Valeant Pharmaceuticals International Inc. 160 22

169 29 0.5Industrials 898 Aecon Group Inc. 14 16 2 022 Air Canada 19 18 632 Badger Daylighting Ltd. 15 14 61 Brookfield Business Partners LP 2 1 2 009 CAE Inc. 30 31 1 596 Canadian National Railway Co. 123 122 450 Canadian Pacific Railway Ltd. 77 75 1 392 Finning International Inc. 30 29 793 Ritchie Bros. Auctioneers Inc. 27 35 640 Russel Metals Inc. 12 15 699 Toromont Industries Ltd. 26 26 910 Transcontinental Inc. 17 16 929 TransForce Inc. 23 22 892 Westshore Terminals Investment Corp. 16 17

431 437 7.9Information Technology 1 256 Celestica Inc. 18 15 891 CGI Group Inc. 49 49 1 273 Computer Modelling Group Ltd. 14 13 78 Constellation Software Inc. 40 39 528 Open Text Corp. 34 40

155 156 2.8

217


June 30, 2016




Materials 829 Agrium Inc. $ 95 $ 97 5 272 Alacer Gold Corp. 14 16 9 852 B2Gold Corp. 26 32 3 688 Barrick Gold Corp. 56 102 90 CCL Industries Inc. 19 20 2 488 Centerra Gold Inc. 17 19 1 489 Chemtrade Logistics Income Fund 26 27 1 303 Detour Gold Corp. 21 42 7 274 FBR 24 46 3 214 Goldcorp Inc. 65 79 4 761 IAMGOLD Corp. 12 25 426 Intertape Polymer Group Inc. 8 9 871 Labrador Iron Ore Royalty Corp. 9 12 2 566 Nevsun Resources Ltd. 11 10 5 010 New Gold Inc. 20 28 1 481 Pan American Silver Corp. 18 32 3 867 Semafo Inc. 21 24 2 302 Teck Resources Ltd. 30 39 6 225 Turquoise Hill Resources Ltd. 25 27 334 West Fraser Timber Co., Ltd. 13 13 3 829 Western Forest Products Inc. 8 8 6 483 Yamana Gold Inc. 40 44

578 751 13.5Telecommunication Services 3 351 BCE Inc. 188 205 2 367 Rogers Communications Inc. 120 124

308 329 5.9Utilities 740 Atco Ltd. 29 34 994 Canadian Utilities Ltd. 36 37 1 209 Capital Power Corp. 22 23 991 Emera Inc. 43 48 1 464 Fortis Inc. 56 64 1 939 Just Energy Group Inc. 16 15 1 979 Superior Plus Corp. 23 21

225 242 4.4TOTAL CANADIAN EQUITIES 5 334 5 510 99.4Less: Transaction costs (1) – –TOTAL INVESTMENTS $ 5 333 5 510 99.4OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 33 0.6NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 5 543 100.0

218






2016December 31

2015



NAV PER UNIT $ 18.48 $ 16.76



INCOME (see note 3 in the generic notes)Dividends $ 89 $ 15 Net realized gain (loss) on investments (130) (1)Change in unrealized gain (loss) on investments 681 (125)TOTAL INCOME (LOSS) 640 (111)EXPENSES (see notes – ETF Specific Information)Management fees 10 2 GST/HST 1 – Transaction costs 2 – TOTAL EXPENSES 13 2 INCREASE (DECREASE) IN NAV $ 627 $ (113)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 2.18 $ (0.98)

219





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 627 $ (113)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – – Net realized loss (gain) on investments 130 1Change in unrealized loss (gain) on investments (681) 125(Increase) decrease in accrued receivables (10) (10)Increase (decrease) in accrued payables 1 1 Cost of investments purchased (4 895) (2 990)Proceeds on sales of investments 3 275 5NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (1 553) (2 981)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 2 549 2 996 Cash paid on redemption of redeemable units (926) – Distributions paid to holders of redeemable units (77) (11)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 1 546 $ 2 985 Net increase (decrease) in cash for the period (7) 4 Cash (bank overdraft), beginning of period 19 – CASH (BANK OVERDRAFT), END OF PERIOD $ 12 $ 4

Interest received (paid) $ – $ – Dividends received, net of withholding taxes $ 79 $ 5

220






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 3 353 $ –INCREASE (DECREASE) IN NAV 627 (113)Early redemption fees – –Proceeds from redeemable units issued 2 549 2 996Reinvestments of distributions to holders of redeemable units – – Redemption of redeemable units (926) – NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 1 623 2 996 Distributions from net income (60) (11)Distributions from net gains – – Distributions from capital – – TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (60) (11)NET INCREASE (DECREASE) IN NAV 2 190 2 872 NAV AT END OF PERIOD $ 5 543 $ 2 872

221



June 30, 2016




with broad exposure to the performance of a diversified

portfolio of high-quality Canadian equity securities that have

the potential for long-term capital growth.

The ETF was started in May 2015.






2016December 31

2015

Canadian Equities Financials 36.3 37.7 Energy 17.6 14.6 Materials 13.5 9.5 Industrials 7.9 8.5 Consumer Discretionary 6.0 6.1 Telecommunication Services 5.9 6.4 Utilities 4.3 5.8 Consumer Staples 4.3 4.4 Information Technology 2.8 3.2 Health Care 0.8 3.2 Other Net Assets 0.6 0.6 Total 100.0 100.0







June 30 2016

December 31 2015

S&P/TSX Capped Composite Total Return Index + or - 1.1 + or - 1.0






























Opening units 200 –Issued number of units 150 200Reinvested number of units – –Redeemed number of units (50) – Ending number of units 300 200

222



June 30, 2016





June 30 2016

June 30 2015

$ % $ %

Total transaction costs 2 100 – –Related-party brokerage commissions* – – – –Commission arrangements† – – – –





June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %

Gross revenue – – – –RBC IS (paid) – – – –Tax withheld – – – –ETF revenue – – – –




June 30 2016

December 31 2015

RBC Strategic Global Equity Leaders ETF 12.1 –

223



June 30, 2016




UNITED STATES EQUITIESConsumer Discretionary 205 Advance Auto Parts Inc. $ 44 $ 43 859 Best Buy Co., Inc. 35 34 1 148 Carnival Corp. 74 66 776 Coach Inc. 39 41 3 435 Comcast Corp. 267 291 497 Darden Restaurants Inc. 39 41 767 Delphi Automotive PLC 67 62 649 Dollar General Corp. 69 79 417 DR Horton Inc. 17 17 440 Foot Locker Inc. 32 31 1 040 Gap Inc. 35 30 228 Garmin Ltd. 12 13 363 Genuine Parts Co. 44 48 1 174 Goodyear Tire & Rubber Co. 45 39 766 Harley-Davidson Inc. 44 45 210 Leggett & Platt Inc. 13 14 482 Mattel Inc. 17 20 924 McDonald’s Corp. 142 144 603 Michael Kors Holdings Ltd. 39 39 67 Mohawk Industries Inc. 15 17 1 398 Nike Inc. 106 100 535 Nordstrom Inc. 34 26 2 434 PayPal Holdings Inc. 122 115 93 Priceline Group Inc. 160 151 776 Ross Stores Inc. 53 57 1 008 Target Corp. 102 91 382 Tiffany & Co. 33 30 1 183 Time Warner Inc. 113 113 854 TJX Cos. Inc. 80 86 506 Urban Outfitters Inc. 19 18 682 VF Corp. 54 54 1 435 Walt Disney Co. 195 182 82 Whirlpool Corp. 18 19 778 Yum! Brands Inc. 82 84

2 260 2 240 13.2Consumer Staples 2 207 Altria Group Inc. 164 198 623 Campbell Soup Co. 51 54 451 Church & Dwight Co., Inc. 55 60 1 237 ConAgra Foods Inc. 67 77 613 Costco Wholesale Corp. 118 126 566 Dr Pepper Snapple Group Inc. 62 71 592 Estée Lauder Cos. Inc. 72 70 1 219 General Mills Inc. 96 113 499 Hershey Co. 59 74 1 097 Hormel Foods Corp. 49 52 686 Kellogg Co. 64 73 1 761 Kroger Co. 84 84 414 McCormick & Co., Inc. 45 57 1 499 PepsiCo Inc. 191 206


Consumer Staples (cont.) 2 134 Procter & Gamble Co. $ 215 $ 235 1 126 Sysco Corp. 63 74 843 Tyson Foods Inc. 72 73

1 527 1 697 10.0Energy 557 Apache Corp. 33 40 227 Concho Resources Inc. 35 35 1 155 ConocoPhillips 76 65 1 122 Diamond Offshore Drilling Inc. 35 35 567 EOG Resources Inc. 59 61 4 977 Exxon Mobil Corp. 530 606 1 957 FMC Technologies Inc. 76 68 931 Helmerich & Payne Inc. 71 81 416 Hess Corp. 32 32 464 Newfield Exploration Co. 21 27 379 Range Resources Corp. 15 21 313 Tesoro Corp. 32 30 736 Valero Energy Corp. 57 49

1 072 1 150 6.8Financials 164 Affiliated Managers Group Inc. 36 30 617 Aflac Inc. 50 58 593 Allstate Corp. 50 54 1 029 American Express Co. 91 81 376 Ameriprise Financial Inc. 52 44 428 Apartment Investment & Management Co. 22 25 257 Assurant Inc. 27 29 192 AvalonBay Communities Inc. 44 45 13 040 Bank of America Corp. 266 225 1 461 Bank of New York Mellon Corp. 77 74 171 BlackRock Inc. 74 76 244 Boston Properties Inc. 39 42 844 Capital One Financial Corp. 83 70 369 Cincinnati Financial Corp. 29 36 785 Discover Financial Services 57 55 1 070 E*TRADE Financial Corp. 33 33 513 Equity Residential 50 46 119 Essex Property Trust Inc. 35 35 3 214 Fifth Third Bancorp. 71 73 61 Four Corners Property Trust Inc. 1 2 927 Franklin Resources Inc. 43 40 1 034 General Growth Properties Inc. 37 40 478 Goldman Sachs Group Inc. 109 92 736 Hartford Financial Services Group Inc. 43 42 1 082 Invesco Ltd. 42 36 3 722 JPMorgan Chase & Co. 309 300 856 Kimco Realty Corp. 29 35 289 Macerich Co. 30 32 512 Northern Trust Corp. 47 44 1 168 PNC Financial Services Group Inc. 138 123 643 Principal Financial Group Inc. 40 34 597 Prudential Financial Inc. 56 55

224


June 30, 2016




Financials (cont.) 452 Realty Income Corp. $ 35 $ 41 5 704 Regions Financial Corp. 72 63 277 Simon Property Group Inc. 71 78 1 617 SunTrust Banks Inc. 86 86 1 650 Synchrony Financial 61 54 511 T. Rowe Price Group Inc. 49 48 352 Torchmark Corp. 26 28 408 Travelers Cos. Inc. 57 63 603 UDR Inc. 28 29 609 Unum Group 24 25 499 Ventas Inc. 43 47 500 Welltower Inc. 43 49 730 XL Group PLC 34 32

2 739 2 649 15.6Health Care 1 097 Agilent Technologies Inc. 56 63 493 AmerisourceBergen Corp. 61 51 910 Amgen Inc. 183 180 1 098 Baxter International Inc. 63 64 350 Becton Dickinson and Co. 76 77 636 Cardinal Health Inc. 68 64 732 Cerner Corp. 52 56 179 CR Bard Inc. 46 55 524 Dover Corp. 44 47 1 465 Eli Lilly & Co. 147 150 1 651 Gilead Sciences Inc. 214 179 615 HCA Holdings Inc. 60 62 213 Henry Schein Inc. 42 49 840 Hologic Inc. 37 38 75 Intuitive Surgical Inc. 56 64 2 001 Johnson & Johnson 278 315 277 Laboratory Corp. of America Holdings 46 47 1 293 Medtronic PLC 137 146 2 885 Merck & Co., Inc, 206 216 5 447 Pfizer Inc. 240 249 422 Quest Diagnostics Inc. 42 45 183 Regeneron Pharmaceuticals Inc. 95 83 661 Thermo Fisher Scientific Inc. 118 127 254 Universal Health Services Inc. 41 45 331 Varian Medical Systems Inc. 36 35 314 Waters Corp. 52 57

2 496 2 564 15.1Industrials 665 3M Co. 134 151 390 Alaska Air Group Inc. 34 30 1 222 American Airlines Group Inc. 61 45 777 Ametek Inc. 54 47 321 CH Robinson Worldwide Inc. 30 31 237 Cintas Corp. 27 30 425 Cummins Inc. 62 62 1 218 Emerson Electric Co. 81 83 445 Expeditors International of Washington Inc. 28 28 577 Fluor Corp. 37 37 6 188 General Electric Co. 230 253 908 Honeywell International Inc. 135 137 620 Illinois Tool Works Inc. 78 84


Industrials (cont.) 695 Ingersoll-Rand PLC $ 59 $ 57 590 Jacobs Engineering Group Inc. 32 38 309 Kansas City Southern 37 36 253 L-3 Communications Holdings Inc. 38 48 381 Parker-Hannifin Corp. 54 53 518 Republic Services Inc. 33 35 349 Robert Half International Inc. 23 17 372 Rockwell Automation Inc. 53 55 423 Rockwell Collins Inc. 49 47 208 Snap-on Inc. 43 43 1 098 Southwest Airlines Co. 60 56 781 United Continental Holdings Inc. 54 42 578 United Parcel Service Inc. 78 81 639 Waste Management Inc. 44 55

1 648 1 681 10.0Information Technology 1 054 Accenture PLC 141 155 417 Alphabet Inc. 403 375 3 668 Apple Inc. 535 455 2 712 Applied Materials Inc. 80 84 1 048 Automatic Data Processing Inc. 115 125 1 488 CA Inc. 57 63 6 459 Cisco Systems Inc. 232 241 620 Citrix Systems Inc. 59 64 1 444 Cognizant Technology Solutions Corp. 120 107 3 665 Corning Inc. 94 97 3 018 eBay Inc. 103 92 977 Electronic Arts Inc. 85 96 387 F5 Networks Inc. 49 57 4 544 Intel Corp. 184 194 1 116 International Business Machines Corp. 217 220 719 Intuit Inc. 94 104 530 Lam Research Corp. 51 58 834 Linear Technology Corp. 47 50 1 455 Mastercard Inc. 183 166 4 968 Microsoft Corp. 318 330 1 070 Paychex Inc. 69 83 736 Red Hat Inc. 67 69 629 Skyworks Solutions Inc. 60 52 2 276 Western Union Co. 58 57 869 Xilinx Inc. 51 52

3 472 3 446 20.3Materials 1 396 Alcoa Inc. 17 17 253 Avery Dennison Corp. 21 25 1 197 Dow Chemical Co. 76 77 379 Eastman Chemical Co. 34 33 398 Ecolab Inc. 60 61 525 LyondellBasell Industries NV 61 51 110 Martin Marietta Materials Inc. 23 27 337 Nucor Corp. 19 22 418 PPG Industries Inc. 59 57 402 Praxair Inc. 61 59 210 Vulcan Materials Co. 28 33

459 462 2.7

225


June 30, 2016




Telecommunication Services 4 898 Verizon Communications Inc. $ 316 $ 355

316 355 2.1Utilities 1 761 AES Corp. 26 29 448 Ameren Corp. 25 31 623 American Electric Power Co., Inc. 48 57 996 CenterPoint Energy Inc. 26 31 528 CMS Energy Corp. 25 31 454 Consolidated Edison Inc. 38 47 320 DTE Energy Co. 34 41 672 Duke Energy Corp. 65 75 486 Edison International 40 49 348 Entergy Corp. 32 37 813 FirstEnergy Corp. 35 37 737 NiSource Inc. 19 25 256 Pinnacle West Capital Corp. 20 28 756 Public Service Enterprise Group Inc. 42 46 325 SCANA Corp. 27 32 340 Sempra Energy 46 50 720 Xcel Energy Inc. 34 42

582 688 4.1TOTAL UNITED STATES EQUITIES 16 571 16 932 99.9Less: Transaction costs (1) – –TOTAL INVESTMENTS $ 16 570 16 932 99.9OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 33 0.1NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 16 965 100.0

226






2016December 31

2015

ASSETSInvestments at fair value $ 16 932 $ 13 263Cash 25 81Dividends receivable, interest accrued and other assets 15 14 TOTAL ASSETS 16 972 13 358 LIABILITIESDistributions payable – 73Accounts payable and accrued expenses 7 4 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 7 77 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 16 965 $ 13 281


NAV PER UNIT $ 21.21 $ 22.13



INCOME (see note 3 in the generic notes)Dividends $ 166 $ 17 Net realized gain (loss) on investments (33) –Net gain (loss) on foreign currencies and other net assets (1) –Change in unrealized gain (loss) on investments (395) 107 TOTAL INCOME (LOSS) (263) 124 EXPENSES (see notes – ETF Specific Information)Management fees 28 3 GST/HST 3 –Transaction costs 2 –Withholding tax 24 2 TOTAL EXPENSES 57 5 INCREASE (DECREASE) IN NAV $ (320) $ 119 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ (0.47) $ 0.65

227





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ (320) $ 119 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 33 –Change in unrealized loss (gain) on investments 395 (107)(Increase) decrease in accrued receivables (1) (3)Increase (decrease) in accrued payables 3 2 Cost of investments purchased (11 157) (3 997)Proceeds on sales of investments 7 060 21 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (3 987) (3 965)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 5 185 4 000 Cash paid on redemption of redeemable units (1 052) –Distributions paid to holders of redeemable units (202) (25)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 3 931 $ 3 975 Net increase (decrease) in cash for the period (56) 10 Cash (bank overdraft), beginning of period 81 –CASH (BANK OVERDRAFT), END OF PERIOD $ 25 $ 10


228






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 13 281 $ –INCREASE (DECREASE) IN NAV (320) 119 Early redemption fees – –Proceeds from redeemable units issued 5 185 4 000 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (1 052) –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 4 133 4 000 Distributions from net income (129) (25)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (129) (25)NET INCREASE (DECREASE) IN NAV 3 684 4 094 NAV AT END OF PERIOD $ 16 965 $ 4 094

229



June 30, 2016





portfolio of high-quality U.S. equity securities that have the








2016December 31

2015

United States Equities Information Technology 20.3 22.0 Financials 15.6 16.2 Health Care 15.1 14.9 Consumer Discretionary 13.2 12.0 Consumer Staples 10.0 9.3 Industrials 9.9 10.3 Energy 6.8 6.1 Utilities 4.1 3.8 Materials 2.7 2.8 Telecommunication Services 2.1 2.5 Other Net Assets 0.2 0.1 Total 100.0 100.0




CurrencyJune 30

2016December 31

2015

United States dollar 100.0 100.5Total 100.0 100.5







be material.







June 30 2016

December 31 2015

S&P 500 Total Return Index (CAD) + or - 0.9 + or - 0.8





















December 31, 2015.

230



June 30, 2016












June 30 2016

June 30 2015

$ % $ %

Total transaction costs 2 100 – –Related-party brokerage commissions* – – – –Commission arrangements† – – – –





June 30 2016

June 30 2015

Fair value of securities loaned 1 633 –Fair value of collateral received 1 666 –





June 30 2016

June 30 2015

$ % $ %






June 30 2016

December 31 2015

RBC Quant U.S. Equity Leaders (CAD Hedged) ETF 52.4 29.1RBC Strategic Global Equity Leaders ETF 4.4 –Total 56.8 29.1

231



June 30, 2016




ETF UNITS 419 069 RBC Quant U.S. Equity Leaders ETF* $ 8 782 $ 8 887

TOTAL INVESTMENTS $ 8 782 8 887 101.7UNREALIZED LOSS ON FOREIGN EXCHANGE CONTRACTS (SCHEDULE A) (170) (2.0)TOTAL PORTFOLIO 8 717 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 22 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 8 739 100.0


Bought CAD 8 560 Sold USD 6 721 @ 1.2736 15-Jul-2016 $ (168)Bought USD 207 Sold CAD 271 @ 1.3084 15-Jul-2016 (2)Bought CAD 289 Sold USD 222 @ 1.2984 15-Jul-2016 –

TOTAL FOREIGN EXCHANGE $ (170)



232






2016December 31

2015

ASSETSInvestments at fair value $ 8 887 $ 3 866 Cash 22 3 Dividends receivable, interest accrued and other assets – 21 TOTAL ASSETS 8 909 3 890 LIABILITIESUnrealized loss on foreign exchange contracts 170 52 Distributions payable – 24 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 170 76 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 8 739 $ 3 814


NAV PER UNIT $ 19.42 $ 19.07



INCOME (see note 3 in the generic notes)Dividends $ 58 $ 12 Net realized gain (loss) on investments (13) 1 Net gain (loss) on foreign currencies and other net assets 365 (42)Change in unrealized gain (loss) on investments (25) 46 Change in unrealized gain (loss) in value of forward contracts (118) (36)TOTAL INCOME (LOSS) 267 (19)INCREASE (DECREASE) IN NAV $ 267 $ (19)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.84 $ (0.20)

233





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 267 $ (19)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 13 (1)Change in unrealized loss (gain) on investments and foreign exchange contracts 143 (10)(Increase) decrease in accrued receivables 21 –Increase (decrease) in accrued payables – –Cost of investments purchased (6 231) (1 991)Proceeds on sales of investments 1 172 43 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (4 615) (1 978)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 5 681 2 000 Cash paid on redemption of redeemable units (956) –Distributions paid to holders of redeemable units (91) (12)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 4 634 $ 1 988 Net increase (decrease) in cash for the period 19 10 Cash (bank overdraft), beginning of period 3 –CASH (BANK OVERDRAFT), END OF PERIOD $ 22 $ 10


234





Total2016 2015

NAV AT BEGINNING OF PERIOD $ 3 814 $ – INCREASE (DECREASE) IN NAV 267 (19)Early redemption fees – –Proceeds from redeemable units issued 5 681 2 000 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units (956) –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 4 725 2 000 Distributions from net income (67) (12)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (67) (12)NET INCREASE (DECREASE) IN NAV 4 925 1 969 NAV AT END OF PERIOD $ 8 739 $ 1 969


235



June 30, 2016



with broad exposure, either directly or indirectly through

investment in other ETFs managed by RBC GAM, to the

performance of a diversified portfolio of high-quality U.S.

equity securities that have the potential for long-term capital

growth, while seeking to minimize the exposure to currency

fluctuations between the U.S. and Canadian dollars.



The ETF invests in the RBC Quant U.S. Equity Leaders ETF.







2016December 31

2015

United States Equities Information Technology 20.3 22.0 Financials 15.6 16.2 Health Care 15.1 14.9 Consumer Discretionary 13.2 12.0 Consumer Staples 10.0 9.3 Industrials 9.9 10.3 Energy 6.8 6.1 Utilities 4.1 3.8 Materials 2.7 2.8 Telecommunication Services 2.1 2.5 Other Net Assets 0.2 0.1 Total 100.0 100.0











June 30 2016

December 31 2015

S&P 500 Total Return Index (USD) + or - 1.0 + or - 0.9








ETF units 8 887 – – 8 887 Derivatives – assets – – – –Derivatives – liabilities – (170) – (170)Total financial instruments 8 887 (170) – 8 717 % of total portfolio 102.0 (2.0) – 100.0










236



June 30, 2016









June 30 2016

December 31 2015


RBC Quant U.S. Equity Leaders ETF 101.7 52.4 101.4 29.1















June 30 2016

June 30 2015






June 30 2016

June 30 2015

$ % $ %


237



June 30, 2016




INTERNATIONAL EQUITIESConsumer Discretionary 400 Adidas AG $ 57 $ 74 600 Aisin Seiki Co., Ltd. 33 31 800 Bandai Namco Holdings Inc. 24 27 4 300 Barratt Developments PLC 49 30 700 Berkeley Group Holdings PLC 42 31 1 300 Bridgestone Corp. 63 54 1 800 Burberry Group PLC 49 36 700 Carnival PLC 46 40 200 Christian Dior SA 50 42 500 Cie Generale des Etablissements Michelin 66 61 3 600 Compass Group PLC 87 89 1 100 Denso Corp. 64 50 600 Dentsu Inc. 43 36 1 000 Electrolux AB 34 35 4 200 Fiat Chrysler Automobiles NV 44 33 1 200 Fuji Heavy Industries Ltd. 55 53 1 700 Hennes & Mauritz AB 80 64 2 300 Honda Motor Co., Ltd. 84 75 300 Hugo Boss AG 35 22 2 000 Inditex SA 84 86 900 InterContinental Hotels Group PLC 44 43 2 000 Isuzu Motors Ltd. 31 32 200 Kering 42 42 8 400 Kingfisher PLC 57 47 400 LVMH Moet Hennessy Louis Vuitton SA 90 78 6 200 Marks & Spencer Group PLC 57 34 1 600 Mazda Motor Corp. 39 28 3 600 Merlin Entertainments plc 30 28 500 Next PLC 65 43 1 500 Nikon Corp. 31 26 1 200 Persimmon PLC 45 30 1 700 Peugeot SA 39 27 284 Rizzoli Corriere Della Sera Mediagroup SpA – – 800 Schibsted ASA 33 31 1 200 SES SA 39 34 7 700 Singapore Press Holdings Ltd 29 29 3 400 Sky PLC 66 50 1 100 Suzuki Motor Corp. 35 38 7 400 Tatts Group Ltd. 29 27 12 800 Taylor Wimpey PLC 50 29 600 Toyota Industries Corp. 32 31 2 100 Toyota Motor Corp. 155 134 2 200 TUI AG 45 33 4 900 William Hill PLC 36 22 1 000 Wolters Kluwer NV 43 53 2 800 WPP Plc 81 75 700 Yamaha Corp. 25 24

2 357 2 037 13.3


Consumer Staples 1 500 Ajinomoto Co., Inc. $ 48 $ 46 1 000 Asahi Group Holdings Ltd. 41 42 1 100 Associated British Foods PLC 72 52 400 Beiersdorf AG 48 49 1 600 Carrefour SA 63 51 1 300 Coca-Cola HBC AG 37 34 400 Colruyt SA 30 29 500 Danone SA 46 46 3 700 Diageo PLC 135 134 600 Heineken NV 68 72 6 700 J Sainsbury PLC 34 27 1 500 Jeronimo Martins SGPS SA 30 31 900 Kao Corp. 64 68 2 100 Koninklijke Ahold NV 57 60 400 L’Oréal SA 95 99 2 200 Nestlé SA 212 220 3 400 Orkla ASA 39 39 500 Pernod Ricard SA 73 72 1 000 Reckitt Benckiser Group PLC 117 130 1 200 Seven & I Holdings Co., Ltd. 67 65 800 Swedish Match AB 33 36 2 700 Tate & Lyle PLC 30 31 2 100 Wesfarmers Ltd. 80 81 28 000 WH Group Ltd. 29 28 9 200 Wilmar International Ltd. 27 29 12 000 WM Morrison Supermarkets PLC 42 39

1 617 1 610 10.5Energy 22 700 BP PLC 154 173 4 500 ENI SpA 95 94 3 100 Inpex Corp. 35 31 700 Neste Oil OYJ 29 32 5 500 Oil Search Ltd. 39 35 900 OMV AG 33 33 500 Technip SA 32 35 1 900 Tenaris SA 32 36 2 300 Total SA 144 144 1 900 Woodside Petroleum Ltd. 56 49

649 662 4.3Financials 4 300 3i Group PLC 39 41 800 Ageas 42 36 600 Allianz SE 126 111 800 ASX Ltd. 32 35 3 200 AXA SA 104 82 200 Baloise Holding AG 33 29 18 300 Banco de Sabadell SA 42 31 4 500 Bank Hapoalim BM 32 29 5 800 Bank Leumi Le-Israel BM 30 26 24 700 Bankia SA 30 23 1 500 BNP Paribas SA 114 86 12 000 BOC Hong Kong Holdings Ltd. 45 47

238


June 30, 2016




Financials (cont.) 11 200 CapitaLand Ltd. $ 35 $ 33 3 000 Challenger Ltd. 26 25 7 000 Cheung Kong Property Holdings Ltd. 52 57 3 500 Credit Agricole SA 51 38 1 300 Daiwa House Industry Co., Ltd. 47 49 4 100 DBS Group Holdings Ltd. 56 62 400 Deutsche Boerse AG 45 42 4 000 Dexus Property Group 30 35 5 766 Direct Line Insurance Group PLC 41 35 3 200 DnB ASA 51 49 1 100 Erste Group Bank AG 43 32 200 Gecina SA 36 35 6 000 Goodman Group 37 41 7 500 GPT Group 34 39 300 Groupe Bruxelles Lambert SA 31 32 300 Hannover Rueck SE 42 41 5 610 Henderson Land Development Co., Ltd. 40 41 4 800 Hongkong Land Holdings Ltd. 38 38 21 500 HSBC Holdings PLC 190 174 6 200 ING Groep NV 110 82 23 800 Intesa Sanpaolo SpA 90 58 3 500 Investec PLC 31 28 800 Julius Baer Group Ltd. 49 41 700 KBC Groep NV 54 44 16 500 Legal & General Group PLC 73 55 7 000 Link REIT 56 62 800 London Stock Exchange Group PLC 38 35 800 Macquarie Group Ltd. 53 53 17 800 Mirvac Group 33 35 14 900 Mitsubishi UFJ Financial Group Inc. 113 86 35 800 Mizuho Financial Group Inc. 85 67 300 Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen 76 65 3 700 National Australia Bank Ltd. 96 91 4 700 Natixis SA 36 23 1 000 NN Group NV 43 36 8 500 Nomura Holdings Inc. 60 39 5 900 Nordea Bank AB 87 64 17 300 Old Mutual PLC 55 60 2 800 ORIX Corp. 52 46 700 Provident Financial PLC 37 28 4 400 Prudential PLC 126 96 12 800 Scentre Group 52 61 700 Schroders PLC 39 29 4 400 Segro PLC 36 32 3 000 Shizuoka Bank Ltd. 30 27 16 000 Sino Land Co., Ltd. 32 34 1 500 Societe Generale SA 84 61 8 700 Stockland 35 40 1 800 Sumitomo Mitsui Financial Group Inc. 88 67 1 000 Sumitomo Realty & Development Co., Ltd. 36 35 4 000 Sun Hung Kai Properties Ltd. 64 62 2 500 Swire Pacific Ltd. 35 37 100 Swiss Life Holding AG 32 30 300 Swiss Prime Site AG 33 35


Financials (cont.) 700 Swiss Re AG $ 82 $ 79 5 300 UBS Group AG 133 89 200 Unibail-Rodamco SE 69 67 3 200 United Overseas Bank Ltd. 62 57 5 200 Westfield Corp. 51 54 5 000 Wheelock & Co., Ltd. 30 30

4 070 3 594 23.4Health Care 300 Actelion Ltd. 59 65 3 500 Astellas Pharma Inc. 67 71 300 Cochlear Ltd. 29 35 400 Coloplast A/S 39 39 1 500 Daiichi Sankyo Co., Ltd. 44 47 400 Essilor International SA 63 69 600 Fresenius Medical Care AG & Co. KGaA 66 68 200 Genmab A/S 42 47 1 300 Grifols SA 35 38 1 000 Kyowa Hakko Kirin Co., Ltd. 24 22 200 Lonza Group AG 40 43 2 000 Novo Nordisk A/S 151 139 900 Otsuka Holdings Co., Ltd. 49 54 1 100 QIAGEN NV 37 31 600 Roche Holding AG 208 205 1 500 Santen Pharmaceutical Co., Ltd. 30 30 2 800 Smith & Nephew PLC 61 62 200 Sonova Holding AG 34 34 400 UCB SA 45 39

1 123 1 138 7.4Industrials 3 500 ABB Ltd. 88 89 800 ACS Actividades de Construccion y Servicios SA 33 28 800 ACS Actividades de Construccion y Servicios SA - Rights July 11, 2016 – 1 200 Aena SA 31 34 1 500 Alfa Laval AB 32 30 800 Alstom SA 26 24 4 000 Asahi Glass Co., Ltd. 34 28 2 100 Atlas Copco AB 70 70 800 Bouygues SA 40 30 4 300 Brambles Ltd. 47 52 600 Brenntag AG 42 38 300 Central Japan Railway Co. 73 69 1 100 Cie de Saint-Gobain 64 55 4 000 CNH Industrial NV 36 37 10 700 ComfortDelGro Corp., Ltd. 31 28 500 Daikin Industries Ltd. 45 54 1 900 Deutsche Post AG 69 69 600 DEXUS 55 39 600 East Japan Railway Co. 75 72 1 600 Ferrovial SA 45 40 2 000 Groupe Eurotunnel SA 34 28 4 000 Hankyu Hanshin Holdings Inc. 35 39 700 Intertek Group PLC 39 42 3 200 Itochu Corp. 53 50 500 Japan Airlines Co., Ltd. 25 21 700 Jardine Matheson Holdings Ltd. 50 53

239


June 30, 2016




Industrials (cont.) 6 000 Kintetsu Corp. $ 32 $ 33 2 200 Komatsu Ltd. 48 49 900 Kone OYJ 50 54 2 500 Kubota Corp. 50 43 1 100 LIXIL Group Corp. 25 23 2 500 Mitsubishi Corp. 59 57 4 000 Mitsubishi Electric Corp. 57 61 3 400 Mitsui & Co., Ltd. 53 52 6 000 MTR Corp., Ltd. 38 39 2 300 Obayashi Corp. 28 32 500 Osram Licht AG 30 34 500 Randstad Holding NV 34 26 4 200 Royal Mail PLC 37 37 700 Safran SA 61 62 3 500 Sandvik AB 45 45 1 000 Schneider Electric SE 82 77 500 Secom Co., Ltd. 51 48 1 700 Seek Ltd. 26 25 900 Siemens AG 118 119 2 800 Singapore Airlines Ltd. 31 29 1 400 Skanska AB 37 38 1 700 SKF AB 43 35 100 SMC Corp. 34 32 200 Societe BIC SA 38 37 2 000 Sumitomo Electric Industries Ltd. 37 34 4 000 Taisei Corp. 32 42 400 Thales SA 35 43 2 000 Toppan Printing Co., Ltd. 23 22 1 000 Toyota Tsusho Corp. 31 28 600 Vestas Wind Systems A/S 54 53 900 Vinci SA 77 83

2 568 2 512 16.3Information Technology 1 100 Amadeus IT Holding SA 60 62 600 ASML Holding NV 76 77 5 000 Auto Trader Group PLC 37 31 400 Check Point Software Technologies Ltd. 44 41 1 000 FUJIFILM Holdings Corp. 50 50 900 Hexagon AB 42 42 1 000 Hoya Corp. 53 46 3 000 Infineon Technologies AG 51 56 1 700 Konica Minolta Inc. 22 16 700 Kyocera Corp. 44 43 400 Murata Manufacturing Co., Ltd. 59 58 300 Nintendo Co., Ltd. 65 55 520 Nomura Research Institute Ltd. 24 25 500 NTT Data Corp. 33 31 2 400 Ricoh Co., Ltd. 31 27 4 100 Sage Group PLC 44 46 1 200 SAP SE 121 115 1 200 Seiko Epson Corp. 26 25 6 700 Telefonaktiebolaget LM Ericsson 83 66 500 Tokyo Electron Ltd. 41 54 500 Trend Micro Inc. 25 23

1 031 989 6.4


Materials 600 Akzo Nobel NV $ 53 $ 49 1 200 BASF SE 121 119 6 100 BHP Billiton Ltd. 130 110 1 500 Boliden AB 30 37 700 Evonik Industries AG 31 27 400 HeidelbergCement AG 40 39 1 700 JFE Holdings Inc. 39 28 800 Johnson Matthey PLC 39 39 600 Koninklijke DSM NV 41 45 1 600 Kuraray Co., Ltd. 27 25 500 Lanxess AG 33 28 4 600 Mitsubishi Chemical Holdings Corp. 34 27 1 600 Mondi PLC 41 39 2 300 Newcrest Mining Ltd. 36 51 1 800 Nippon Steel & Sumitomo Metal Corp. 47 45 500 Nitto Denko Corp. 43 41 6 700 Norsk Hydro ASA 34 32 2 200 Rio Tinto Ltd. 104 97 800 Shin-Etsu Chemical Co., Ltd. 59 60 5 000 Sumitomo Chemical Co., Ltd. 32 26 4 000 Toray Industries Inc. 44 44 500 Umicore SA 32 33 1 800 UPM-Kymmene OYJ 41 43 700 Yara International ASA 40 29

1 171 1 113 7.2Telecommunication Services 10 400 Bezeq The Israeli Telecommunication Corp., Ltd. 27 27 4 500 Deutsche Telekom AG 103 99 2 500 Inmarsat PLC 44 35 2 300 KDDI Corp. 75 91 9 900 Koninklijke KPN NV 49 46 1 200 Nippon Telegraph & Telephone Corp. 61 73 2 200 NTT DoCoMo Inc. 58 76 3 600 Orange SA 81 76 700 Proximus 31 29 8 800 Spark New Zealand Ltd. 26 29 4 000 Telefonica Deutschland Holding AG 27 21 10 400 Telstra Corp., Ltd. 58 56 34 400 Vodafone Group PLC 150 136

790 794 5.2

240


June 30, 2016




Utilities 2 400 AGL Energy Ltd. $ 44 $ 45 1 800 Chubu Electric Power Co., Inc. 32 33 4 500 CLP Holdings Ltd. 52 60 900 Enagas SA 34 35 1 300 Endesa SA 34 34 9 600 Iberdrola SA 84 84 2 600 Kansai Electric Power Co., Inc. 31 33 1 900 Kyushu Electric Power Co., Inc. 25 25 6 200 National Grid PLC 110 118 6 000 Osaka Gas Co., Ltd. 31 30 400 Red Electrica Corp. SA 45 46 1 000 Severn Trent PLC 41 42 2 700 SSE PLC 78 73 1 400 Suez 30 28 1 700 Tohoku Electric Power Co., Inc. 28 28 4 400 Tokyo Electric Power Co., Inc. 29 24 7 000 Tokyo Gas Co., Ltd. 37 37 2 600 United Utilities Group PLC 47 47 1 600 Veolia Environnement SA 46 45

858 867 5.6TOTAL INTERNATIONAL EQUITIES 16 234 15 316 99.6Less: Transaction costs included in Cost (29) – –TOTAL INVESTMENTS $ 16 205 15 316 99.6OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 68 0.4NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 15 384 100.0

241






2016December 31

2015

ASSETSInvestments at fair value $ 15 316 $ 9 300 Cash 37 62 Due from investment dealers – 15Dividends receivable, interest accrued and other assets 39 8TOTAL ASSETS 15 392 9 385LIABILITIESDistributions payable – 62 Accounts payable and accrued expenses 8 5 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 8 67 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 15 384 $ 9 318


NAV PER UNIT $ 18.10 $ 20.71



INCOME (see note 3 in the generic notes)Dividends $ 379 $ 34 Securities lending revenue (see note 7 in the generic notes) 4 –Net realized gain (loss) on investments (380) 25 Net gain (loss) on foreign currencies and other net assets 11 25 Change in unrealized gain (loss) on investments (1 234) 6 TOTAL INCOME (LOSS) (1 220) 90 EXPENSES (see notes – ETF Specific Information)Management fees 34 3 GST/HST 4 –Transaction costs 32 14 Withholding tax 53 7 TOTAL EXPENSES 123 24 INCREASE (DECREASE) IN NAV $ (1 343) $ 66 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ (1.83) $ 0.34

242





For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ (1 343) $ 66 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 380 (25)Change in unrealized loss (gain) on investments 1 234 (6)(Increase) decrease in accrued receivables (31) (10)Increase (decrease) in accrued payables 3 2 Cost of investments purchased (21 755) (16 779)Proceeds on sales of investments 14 140 12 834 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (7 372) (3 918)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 7 582 4 000 Cash paid on redemption of redeemable units – –Distributions paid to holders of redeemable units (235) (28)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 7 347 $ 3 972 Net increase (decrease) in cash for the period (25) 54 Cash (bank overdraft), beginning of period 62 –CASH (BANK OVERDRAFT), END OF PERIOD $ 37 $ 54


243






Total2016 2015

NAV AT BEGINNING OF PERIOD $ 9 318 $ – INCREASE (DECREASE) IN NAV (1 343) 66 Early redemption fees – –Proceeds from redeemable units issued 7 582 7 016 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units – –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 7 582 7 016 Distributions from net income (173) (28)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (173) (28)NET INCREASE (DECREASE) IN NAV 6 066 7 054 NAV AT END OF PERIOD $ 15 384 $ 7 054

244



June 30, 2016





portfolio of high-quality equity securities in markets in

Europe, Australasia and the Far East (EAFE) that have the








2016December 31

2015

International Equities Financials 23.4 26.1 Industrials 16.1 14.9 Consumer Discretionary 13.5 13.6 Consumer Staples 10.5 9.2 Health Care 7.7 9.0 Materials 7.2 7.3 Information Technology 6.1 5.7 Utilities 5.6 5.0 Telecommunication Services 5.2 5.0 Energy 4.3 3.9 Other Net Assets 0.4 0.3 Total 100.0 100.0




CurrencyJune 30

2016December 31

2015

Euro 31.6 29.6Japanese yen 23.6 24.1Pound sterling 17.3 19.0Australian dollar 7.6 7.6Swiss franc 6.5 7.2Swedish krona 3.7 4.4Hong Kong dollar 3.3 3.2Danish krone 1.8 1.6Singapore dollar 1.7 1.4Norwegian krone 1.2 0.5United States dollar 0.9 0.5Israeli new shekel 0.5 1.4New Zealand dollar 0.2 0.2Total 99.9 100.7







be material.







June 30 2016

December 31 2015

MSCI EAFE Total Return Index (CAD) + or - 1.0 + or - 0.9



















245



June 30, 2016



December 31, 2015.








Opening units 450 –Issued number of units 400 450Reinvested number of units – –Redeemed number of units – – Ending number of units 850 450




June 30 2016

June 30 2015

$ % $ %







June 30 2016

June 30 2015

Fair value of securities loaned 1 696 –Fair value of collateral received 1 730 –





June 30 2016

June 30 2015

$ % $ %





June 30 2016

December 31 2015

RBC Quant EAFE Equity Leaders (CAD Hedged) ETF 54.2 20.0RBC Strategic Global Equity Leaders ETF 2.9 –Total 57.1 20.0

246



June 30, 2016




ETF UNITS 460 418 RBC Quant EAFE Equity Leaders ETF* $ 8 806 $ 8 333

TOTAL INVESTMENTS $ 8 806 8 333 100.7UNREALIZED LOSS ON FOREIGN EXCHANGE CONTRACTS (SCHEDULE A) (79) (1.0)TOTAL PORTFOLIO 8 254 99.7OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 22 0.3NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 8 276 100.0


Bought CAD 614 Sold AUD 652 @ 0.9420 15-Jul-2016 $ (16)Bought CAD 1 535 Sold GBP 841 @ 1.8255 15-Jul-2016 75Bought GBP 25 Sold CAD 46 @ 1.8228 15-Jul-2016 (2)Bought GBP 27 Sold CAD 49 @ 1.8328 15-Jul-2016 (3)Bought CAD 68 Sold GBP 36 @ 1.8796 15-Jul-2016 5Bought GBP 26 Sold CAD 45 @ 1.7241 15-Jul-2016 –Bought GBP 38 Sold CAD 67 @ 1.7436 15-Jul-2016 –Bought CAD 44 Sold GBP 25 @ 1.7569 15-Jul-2016 1Bought CAD 48 Sold GBP 27 @ 1.7356 15-Jul-2016 –Bought CAD 153 Sold DKK 791 @ 0.1937 15-Jul-2016 –Bought DKK 23 Sold CAD 5 @ 0.1941 15-Jul-2016 –Bought DKK 32 Sold CAD 6 @ 0.1953 15-Jul-2016 –Bought CAD 5 Sold DKK 27 @ 0.1946 15-Jul-2016 –Bought DKK 33 Sold CAD 6 @ 0.1946 15-Jul-2016 –Bought CAD 8 Sold DKK 40 @ 0.1939 15-Jul-2016 –Bought CAD 2 773 Sold EUR 1 925 @ 1.4405 15-Jul-2016 (6)Bought EUR 76 Sold CAD 109 @ 1.4430 15-Jul-2016 –Bought CAD 84 Sold EUR 58 @ 1.4472 15-Jul-2016 –Bought EUR 108 Sold CAD 156 @ 1.4397 15-Jul-2016 –Bought EUR 64 Sold CAD 93 @ 1.4471 15-Jul-2016 –Bought CAD 126 Sold EUR 88 @ 1.4428 15-Jul-2016 –Bought CAD 260 Sold HKD 1 586 @ 0.1641 15-Jul-2016 (5)Bought CAD 1 993 Sold JPY 167 100 @ 0.0119 15-Jul-2016 (123)Bought JPY 5 709 Sold CAD 69 @ 0.0122 15-Jul-2016 3

SCHEDULE A (cont.)Foreign Exchange Contracts Unrealized Contracts Maturity Date Gain (Loss)

Bought JPY 5 410 Sold CAD 67 @ 0.0124 15-Jul-2016 $ 2Bought CAD 64 Sold JPY 5 225 @ 0.0123 15-Jul-2016 (2)Bought JPY 9 708 Sold CAD 125 @ 0.0129 15-Jul-2016 (2)Bought CAD 66 Sold JPY 5 184 @ 0.0127 15-Jul-2016 –Bought NOK 24 Sold CAD 4 @ 0.1552 15-Jul-2016 –Bought CAD 104 Sold NOK 673 @ 0.1551 15-Jul-2016 –Bought NOK 20 Sold CAD 3 @ 0.1553 15-Jul-2016 –Bought CAD 3 Sold NOK 21 @ 0.1541 15-Jul-2016 –Bought NOK 19 Sold CAD 3 @ 0.1524 15-Jul-2016 –Bought NOK 22 Sold CAD 3 @ 0.1538 15-Jul-2016 –Bought CAD 3 Sold NOK 22 @ 0.1551 15-Jul-2016 –Bought CAD 142 Sold SGD 151 @ 0.9389 15-Jul-2016 (4)Bought SGD 5 Sold CAD 5 @ 0.9648 15-Jul-2016 –Bought CAD 314 Sold SEK 2 036 @ 0.1544 15-Jul-2016 2Bought SEK 74 Sold CAD 11 @ 0.1550 15-Jul-2016 –Bought CAD 12 Sold SEK 77 @ 0.1554 15-Jul-2016 –Bought SEK 153 Sold CAD 23 @ 0.1531 15-Jul-2016 –Bought CAD 15 Sold SEK 97 @ 0.1533 15-Jul-2016 –Bought CAD 564 Sold CHF 426 @ 1.3250 15-Jul-2016 (4)Bought CHF 20 Sold CAD 27 @ 1.3366 15-Jul-2016 – Bought CAD 19 Sold CHF 14 @ 1.3354 15-Jul-2016 – Bought CHF 18 Sold CAD 24 @ 1.3384 15-Jul-2016 –

TOTAL FOREIGN EXCHANGE $ (79)



247





2016December 31

2015

ASSETSInvestments at fair value $ 8 333 $ 1 864 Cash 22 4 Dividends receivable, interest accrued and other assets – 12 TOTAL ASSETS 8 355 1 880 LIABILITIESUnrealized loss on foreign exchange contracts 79 29 Distributions payable – 13 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 79 42 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 8 276 $ 1 838


NAV PER UNIT $ 16.55 $ 18.38




INCOME (see note 3 in the generic notes)Dividends $ 90 $ 13 Net realized gain (loss) on investments (3) 1 Net gain (loss) on foreign currencies and other net assets 239 (44)Change in unrealized gain (loss) on investments (536) 14 Change in unrealized gain (loss) in value of forward contracts (50) (29)TOTAL INCOME (LOSS) (260) (45)INCREASE (DECREASE) IN NAV $ (260) $ (45)INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ (0.68) $ (0.47)

248




For the periods ended June 30 (see note 2 in the generic notes) 2016 2015CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ (260) $ (45)ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes – –Net realized loss (gain) on investments 3 (1)Change in unrealized loss (gain) on investments and foreign exchange contracts 586 15 (Increase) decrease in accrued receivables 12 –Increase (decrease) in accrued payables – –Cost of investments purchased (7 160) (1 989)Proceeds on sales of investments 152 43 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (6 667) (1 977)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 6 793 2 000 Cash paid on redemption of redeemable units – –Distributions paid to holders of redeemable units (108) (13)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 6 685 $ 1 987 Net increase (decrease) in cash for the period 18 10 Cash (bank overdraft), beginning of period 4 –CASH (BANK OVERDRAFT), END OF PERIOD $ 22 $ 10



249





Total2016 2015

NAV AT BEGINNING OF PERIOD $ 1 838 $ –INCREASE (DECREASE) IN NAV (260) (45)Early redemption fees – –Proceeds from redeemable units issued 6 793 2 000 Reinvestments of distributions to holders of redeemable units – –Redemption of redeemable units – –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 6 793 2 000 Distributions from net income (95) (13)Distributions from net gains – –Distributions from capital – –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (95) (13)NET INCREASE (DECREASE) IN NAV 6 438 1 942 NAV AT END OF PERIOD $ 8 276 $ 1 942


250



June 30, 2016


The investment objective of the ETF is to provide

unitholders with broad exposure, either directly or

indirectly through investment in other ETFs managed by

RBC GAM, to the performance of a diversified portfolio

of high-quality equity securities in markets in Europe,

Australasia and the Far East (EAFE) that have the potential

for long-term capital growth, while seeking to minimize

the exposure to currency fluctuations between foreign

currencies and the Canadian dollar.



The ETF invests in the RBC Quant EAFE Equity Leaders ETF.







2016December 31

2015

International Equities Financials 23.4 26.1 Industrials 16.1 14.9 Consumer Discretionary 13.5 13.6 Consumer Staples 10.5 9.2 Health Care 7.7 9.0 Materials 7.2 7.3 Information Technology 6.1 5.7 Utilities 5.6 5.0 Telecommunication Services 5.2 5.0 Energy 4.3 3.9 Other Net Assets 0.4 0.3Total 100.0 100.0











June 30 2016

December 31 2015

MSCI EAFE Net Index 100% CAD Hedged + or - 1.0 + or - 0.9


















251



June 30, 2016








June 30 2016

December 31 2015


RBC Quant EAFE Equity Leaders ETF 100.7 54.2 101.4 20.0












Opening units 100 –Issued number of units 400 100Reinvested number of units – –Redeemed number of units – – Ending number of units 500 100




June 30 2016

June 30 2015




to the securities lending revenue disclosed in the Statements

of Comprehensive Income.

June 30 2016

June 30 2015

$ % $ %


252



June 30, 2016




EQUITIESConsumer Discretionary 1 200 Arcelik AS $ 8 $ 10 32 900 Astra International Tbk PT 20 24 9 000 Belle International Holdings Ltd. 7 7 5 000 Cheng Shin Rubber Industry Co., Ltd. 10 14 200 Coway Co., Ltd. 23 24 8 000 Dongfeng Motor Group Co., Ltd. 14 11 500 El Puerto de Liverpool SAB de CV 8 7 20 000 Geely Automobile Holdings Ltd. 13 14 8 000 Guangzhou Automobile Group Co., Ltd. 10 12 200 Hankook Tire Co., Ltd. 11 12 700 Hanon Systems 9 8 500 Imperial Holdings Ltd. 5 7 300 Kangwon Land Inc. 14 14 400 Kia Motors Corp. 23 19 1 300 Lojas Renner SA 8 12 4 500 Matahari Department Store Tbk PT 8 9 300 New Oriental Education & Technology Group Inc. 13 16 5 000 Pou Chen Corp. 8 9 900 SACI Falabella 8 9 1 400 Woolworths Holdings Ltd. 10 10

230 248 6.0Consumer Staples 4 700 Ambev SA 32 36 500 BIM Birlesik Magazalar AS 12 13 500 British American Tobacco Malaysia BHD 9 8 3 600 Cencosud SA 12 13 27 600 Charoen Pokphand Indonesia Tbk PT 9 10 20 000 China Huishan Dairy Holdings Co., Ltd. 11 11 600 Cia Cervecerias Unidas SA 8 9 1 400 Coca-Cola Femsa SAB de CV 13 15 7 700 CP ALL PCL 13 14 600 Gruma SAB de CV 11 11 3 800 Grupo Bimbo SAB de CV 14 15 2 500 Grupo Lala SAB de CV 8 7 1 700 Gudang Garam Tbk PT 10 12 2 300 Hypermarcas SA 25 22 5 100 Indofood CBP Sukses Makmur TBK PT 8 9 8 100 IOI Corp. Bhd 12 11 1 800 PPB Group BHD 9 10 600 Raia Drogasil SA 12 15 500 Tiger Brands Ltd. 14 16 8 000 Travelsky Technology Ltd. 16 20 8 000 Uni-President Enterprises Corp. 18 20 2 200 Universal Robina Corp. 12 13 7 700 Wal-Mart de Mexico SAB de CV 26 24

314 334 8.2


Energy 64 000 China Petroleum & Chemical Corp. $ 48 $ 60 8 500 China Shenhua Energy Co., Ltd. 17 20 26 000 CNOOC Ltd. 33 42 700 Cosan SA Industria e Comercio 9 9 57 200 IRPC PCL 10 10 14 000 Kunlun Energy Co., Ltd. 14 15 56 000 PetroChina Co., Ltd. 45 50 16 000 Petroleo Brasileiro SA 52 61 1 300 Petronas Dagangan BHD 10 10 700 Qatar Gas Transport Co., Ltd. 6 6 3 400 Sapurakencana Petroleum Bhd 2 2 200 SK Innovation Co., Ltd. 32 32 4 300 Thai Oil PCL 11 10

289 327 8.0Financials 5 300 Abu Dhabi Commercial Bank PJSC 11 11 37 000 Agricultural Bank of China Ltd. 19 18 4 500 Akbank TAS 15 17 7 000 Aldar Properties PJSC 5 7 400 Ayala Corp. 8 9 10 200 Ayala Land Inc. 9 11 3 510 Banco Bradesco SA 21 36 2 000 Banco do Brasil SA 9 14 1 200 Bancolombia SA 11 14 18 400 Bank Mandiri Persero Tbk PT 16 17 66 000 Bank of China Ltd. 37 34 19 300 Bank Rakyat Indonesia Persero Tbk PT 18 20 1 000 Barclays Africa Group Ltd. 11 13 4 200 BDO Unibank Inc. 12 13 1 400 BR Malls Participacoes SA 6 7 3 000 Chailease Holding Co., Ltd. 6 6 55 000 China Construction Bank Corp. 48 47 4 000 China Everbright Ltd. 11 10 7 500 China Merchants Bank Co., Ltd. 21 22 4 000 China Overseas Land & Investment Ltd. 15 16 4 000 China Resources Land Ltd. 13 12 2 700 Compartamos SAB de CV 6 6 106 Credicorp Ltd. 13 21 27 000 CTBC Financial Holding Co., Ltd. 18 18 1 300 Dalian Wanda Commercial Properties Co., Ltd. 9 10 200 Dongbu Insurance Co., Ltd. 16 16 3 900 Dubai Islamic Bank PJSC 8 7 18 000 E.Sun Financial Holding Co., Ltd. 12 14 5 400 Emaar Malls Group PJSC 5 5 4 800 Emaar Properties PJSC 8 11 2 900 Emlak Konut Gayrimenkul Yatirim Ortakligi AS 3 4 1 400 Ezdan Holding Group QSC 9 9 2 200 Fibra Uno Administracion SA de CV 6 6 2 600 First Gulf Bank PJSC 11 12

253


June 30, 2016



Financials (cont.) 9 000 Fubon Financial Holding Co., Ltd. $ 13 $ 14 2 800 GF Securities Co., Ltd. 8 8 2 500 Growthpoint Properties Ltd. 5 6 14 700 Grupo Aval Acciones y Valores 7 8 600 Grupo de Inversiones Suramericana SA 10 10 600 Hana Financial Group Inc. 16 16 18 000 Hua Nan Financial Holdings Co., Ltd. 11 12 3 200 Huatai Securities Co., Ltd. 8 9 400 Hyprop Investments Ltd. 3 5 300 Hyundai Marine & Fire Insurance Co., Ltd. 11 10 1 300 ICICI Bank Ltd. 12 12 800 Industrial Bank of Korea 10 10 800 Investec Ltd. 7 6 2 900 Itau Unibanco Holding SA 24 36 6 680 Itausa - Investimentos Itau SA 15 21 3 000 Kasikornbank PCL 19 19 600 KB Financial Group Inc. 21 22 200 Komercni Banka AS 11 10 12 600 Krung Thai Bank PCL 9 8 4 000 Longfor Properties Co., Ltd. 8 7 7 300 Malayan Banking Bhd 20 19 41 000 Metro Pacific Investments Corp. 7 8 2 700 National Bank of Abu Dhabi PJSC 8 9 500 OTP Bank PLC 16 15 10 000 PICC Property & Casualty Co., Ltd. 25 20 6 000 Ping An Insurance Group Co., of China Ltd. 39 34 1 900 Powszechna Kasa Oszczednosci Bank Polski SA 15 15 1 300 Powszechny Zaklad Ubezpieczen SA 15 12 400 Qatar National Bank SAQ 20 20 2 700 Rand Merchant Investment Holdings Ltd. 9 10 5 000 Redefine Properties Ltd. 4 5 700 Remgro Ltd. 14 16 200 Samsung Life Insurance Co., Ltd. 23 23 3 400 Sanlam Ltd. 17 18 4 000 Shimao Property Holdings Ltd. 8 7 600 Shinhan Financial Group Co., Ltd. 27 26 3 300 Siam Commercial Bank PCL 15 17 29 000 SinoPac Financial Holdings Co., Ltd. 10 11 13 100 SM Prime Holdings Inc. 9 10 24 000 Taishin Financial Holding Co., Ltd. 10 12 20 000 Taiwan Cooperative Financial Holding Co., Ltd. 11 11 4 500 Turkiye Garanti Bankasi AS 15 15 1 000 Woori Bank 10 11

1 021 1 086 26.5Diversified Financials 4 400 FirstRand Ltd. 15 17 2 200 Haci Omer Sabanci Holding AS 8 9 1 800 RMB Holdings Ltd. 8 9

31 35 0.9


Health Care 10 400 Bangkok Dusit Medical Services PCL $ 9 $ 9 5 000 China Medical System Holdings Ltd. 9 10 12 000 CSPC Pharmaceutical Group Ltd. 16 14 300 Dr. Reddy’s Laboratories Ltd. 18 20 4 400 IHH Healthcare Bhd 10 9 500 Richter Gedeon Nyrt 14 13 13 000 Sino Biopharmaceutical Ltd. 13 11 2 000 Sinopharm Group Co., Ltd. 10 12

99 98 2.4Industrials 4 000 Air China Ltd. 4 4 700 Airports of Thailand PCL 10 10 4 400 Alfa SAB de CV 10 10 4 000 Beijing Capital International Airport Co., Ltd. 6 6 1 500 Beijing Enterprises Holdings Ltd. 11 11 400 Bidvest Group Ltd. 11 5 9 500 BTS Group Holdings PCL 3 3 7 000 China Communications Construction Co., Ltd. 10 10 3 500 China Conch Venture Holdings Ltd. 9 9 2 000 China Merchants Holdings International Co., Ltd. 8 7 8 000 China Railway Group Ltd. 7 8 6 000 COSCO Pacific Ltd. 8 8 13 200 Dialog Group BHD 7 7 9 000 Far Eastern New Century Corp. 9 9 5 200 Gamuda BHD 8 8 600 Grupo Aeroportuario del Pacifico SAB de CV 8 8 400 Grupo Aeroportuario del Sureste SAB de CV 7 8 1 600 Grupo Carso SAB de CV 8 9 200 GS Engineering & Construction Corp. 6 6 200 Hyundai Development Co-Engineering & Construction 10 9 200 Hyundai Engineering & Construction Co., Ltd. 7 8 6 600 IJM Corp BHD 7 7 300 Industries Qatar QSC 11 10 3 900 JG Summit Holdings Inc. 8 9 1 700 KOC Holding AS 9 10 500 Latam Airlines Group SA 3 4 200 LG Corp. 14 14 2 600 Malaysia Airports Holdings BHD 5 5 1 500 MISC BHD 4 4 500 Promotora y Operadora de Infraestructura SAB de CV 8 8 12 000 Shanghai Electric Group Co., Ltd. 8 7 300 SM Investments Corp. 7 8 7 000 Teco Electric and Machinery Co., Ltd. 7 8 4 900 United Tractors Tbk PT 8 7

266 264 6.5Insurance 23 000 Peoples Insurance Co., Group of China Ltd. 13 11

13 11 0.3


254


June 30, 2016



Information Technology 800 Alibaba Group Holding Ltd. $ 78 $ 83 2 000 Asustek Computer Inc. 22 21 421 Baidu Inc. 93 90 3 500 Cielo SA 41 48 18 000 Compal Electronics Inc. 13 15 4 000 Foxconn Technology Co., Ltd. 11 12 16 000 Hon Hai Precision Industry Co., Ltd. 49 53 3 200 Infosys Ltd. 80 74 34 000 Innolux Corp. 14 15 12 000 Inventec Corp. 12 11 700 LG Display Co., Ltd. 19 21 8 000 Lite-On Technology Corp. 10 14 300 NetEase Inc. 67 75 4 000 Novatek Microelectronics Corp. 17 19 5 000 Powertech Technology Inc. 14 14 8 000 Quanta Computer Inc. 18 20 4 000 Realtek Semiconductor Corp. 12 16 68 Samsung Electronics Co., Ltd. 94 109 200 Samsung SDI Co., Ltd. 24 24 10 000 Siliconware Precision Industries Co., Ltd. 22 20 21 000 Taiwan Semiconductor Manufacturing Co., Ltd. 121 137 1 000 Tencent Holdings Ltd. 28 29 1 800 Wipro Ltd. 29 29 14 000 Wistron Corp. 10 13

898 962 23.5Materials 200 Anglo American Platinum Ltd. 6 7 600 AngloGold Ashanti Ltd. 7 14 2 500 Anhui Conch Cement Co., Ltd. 8 8 5 000 Asia Cement Corp. 5 6 900 Cementos Argos SA 4 5 25 000 China Steel Corp. 19 20 2 600 Empresas CMPC SA 7 7 4 400 Eregli Demir ve Celik Fabrikalari TAS 6 8 5 000 Formosa Chemicals & Fibre Corp. 14 16 6 000 Formosa Plastics Corp. 18 19 4 000 Gerdau SA 8 10 1 500 Gold Fields Ltd. 7 9 600 Grupo Argos SA 5 5 3 400 Indocement Tunggal Prakarsa Tbk PT 7 6 5 000 Jiangxi Copper Co., Ltd. 8 7 400 KGHM Polska Miedz SA 7 9 200 Mondi Ltd. 5 5 5 400 Petronas Chemicals Group BHD 13 11 100 POSCO 23 23 1 200 Sappi Ltd. 8 7 500 Siam Cement PCL 8 9 14 000 Sinopec Shanghai Petrochemical Co Ltd. 8 8 300 Sociedad Quimica y Minera de Chile SA 8 10 900 Suzano Papel e Celulose SA 5 4 7 000 Taiwan Cement Corp. 8 9

222 242 5.8


Telecommunication Services 46 100 America Movil SAB de CV $ 38 $ 36 9 200 Axiata Group BHD 20 17 5 000 China Mobile Ltd. 76 74 38 000 China Telecom Corp., Ltd. 25 22 16 000 China Unicom Hong Kong Ltd. 23 20 3 900 Emirates Telecommunications Group Co., PJSC 24 26 200 Globe Telecom Inc. 11 13 7 800 Maxis Bhd 14 15 400 Ooredoo QSC 13 13 1 200 Telefonica Brasil SA 18 21 5 900 Telekom Malaysia BHD 13 13 88 000 Telekomunikasi Indonesia Persero Tbk PT 30 34 1 300 Vodacom Group Ltd. 18 19

323 323 7.9Utilities 9 400 Aguas Andinas SA 7 7 8 000 China Longyuan Power Group Corp., Ltd. 7 9 11 000 China Power International Development Ltd. 7 5 4 000 China Resources Power Holdings Co., Ltd. 10 8 800 Cia de Saneamento Basico do Estado de Sao Paulo 5 9 24 100 Colbun SA 8 8 6 900 Empresa Nacional de Electricidad SA 12 8 38 400 Enersis Americas SA 12 9 400 Equatorial Energia SA 7 8 2 100 Glow Energy PCL 6 7 300 Korea Electric Power Corp. 20 19 1 300 Petronas Gas BHD 9 9 3 500 Tenaga Nasional BHD 15 16 14 400 YTL Corp. Bhd 7 8

132 130 3.2TOTAL EQUITIES 3 838 4 060 99.2Less: Transaction costs (5) – –TOTAL INVESTMENTS $ 3 833 4 060 99.2OTHER NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 31 0.8NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS $ 4 091 100.0


255






2016

ASSETSInvestments at fair value $ 4 060 Cash 13 Dividends receivable, interest accrued and other assets 20 TOTAL ASSETS 4 093 LIABILITIESAccounts payable and accrued expenses 2 TOTAL LIABILITIES EXCLUDING NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 2 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 4 091





INCOME (see note 3 in the generic notes)Dividends $ 78 Net realized gain (loss) on investments (100)Net gain (loss) on foreign currencies and other net assets (45)Change in unrealized gain (loss) on investments 227 TOTAL INCOME (LOSS) 160 EXPENSES (see notes – ETF Specific Information)Management fees 12 GST/HST 1 Transaction costs 10 Witholding tax 6 TOTAL EXPENSES 29 INCREASE (DECREASE) IN NAV $ 131 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 0.68

256




For the period ended June 30 (see note 2 in the generic notes) 2016CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 131 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes –Net realized loss (gain) on investments 100 Change in unrealized loss (gain) on investments (227)(Increase) decrease in accrued receivables (20)Increase (decrease) in accrued payables 2 Cost of investments purchased (9 090)Proceeds on sales of investments 5 157 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (3 947)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 4 000 Cash paid on redemption of redeemable units –Distributions paid to holders of redeemable units (40)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 3 960 Net increase (decrease) in cash for the period 13 Cash (bank overdraft), beginning of period – CASH (BANK OVERDRAFT), END OF PERIOD $ 13

Interest received (paid) $ – Dividends received, net of withholding taxes $ 52


257





Total2016

NAV AT BEGINNING OF PERIOD $ –INCREASE (DECREASE) IN NAV 131 Early redemption fees –Proceeds from redeemable units issued 4 000 Reinvestments of distributions to holders of redeemable units –Redemption of redeemable units –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 4 000 Distributions from net income (40)Distributions from net gains –Distributions from capital –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (40)NET INCREASE (DECREASE) IN NAV 4 091 NAV AT END OF PERIOD $ 4 091


258



June 30, 2016




portfolio of high-quality emerging market equity securities

that have the potential for long-term capital growth.



As at December 31, 2015, the ETF held only cash and therefore

was not exposed to significant financial instrument risk.





2016

International Equities Financials 26.5 Information Technology 23.5 Consumer Staples 8.2 Energy 8.0 Telecommunication Services 7.9 Industrials 6.5 Consumer Discretionary 6.0 Materials 5.8 Utilities 3.2 Health Care 2.4 Diversified Financials 0.9 Insurance 0.3 Other Net Assets 0.8 Total 100.0




CurrencyJune 30

2016

Hong Kong dollar 20.5 New Taiwan dollar 15.0 South Korean won 11.6 United States dollar 10.3 Brazilian real 9.2 South African rand 5.0 Malaysian ringgit 4.6 Mexican peso 4.2 Indonesian rupiah 3.6 Thailand baht 2.8 Philippine peso 2.3 UAE dirham 2.2

CurrencyJune 30

2016

Turkish new lira 2.1 Chilean peso 2.0 Qatari rial 1.4 Colombian peso 1.0 Polish zloty 0.9 Hungarian forint 0.7 Chinese renminbi 0.3 Czech koruna 0.2 Total 99.9




decreased or increased, respectively, by approximately 1.0%.

In practice, actual results could differ from this sensitivity











June 30, 2016.











259



June 30, 2016













June 30 2016

$ %

Total transaction costs 10 100Related-party brokerage commissions* – –Commission arrangements† – –





June 30 2016

Fair value of securities loaned 97Fair value of collateral received 99





June 30 2016

$ %

Gross revenue – –RBC IS (paid) – –Tax withheld – –ETF revenue – –




June 30 2016

RBC Strategic Global Equity Leaders ETF 4.8

260



June 30, 2016




ETF UNITS 36 419 RBC Quant Canadian Equity Leaders ETF* $ 570 $ 673 25 015 RBC Quant EAFE Equity Leaders ETF* 490 453 9 698 RBC Quant Emerging Markets Equity Leaders ETF* 194 198 35 354 RBC Quant U.S. Equity Leaders ETF* 753 750



261






2016

ASSETSInvestments at fair value $ 2 074 Cash 5 TOTAL ASSETS 2 079 NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (“NAV”) $ 2 079





INCOME (see note 3 in the generic notes)Dividends $ 21 Net realized gain (loss) on investments 12 Change in unrealized gain (loss) on investments 67 TOTAL INCOME (LOSS) 100 EXPENSES (see notes – ETF Specific Information)Management fees 1 TOTAL EXPENSES 1 INCREASE (DECREASE) IN NAV $ 99 INCREASE (DECREASE) IN NAV PER REDEEMABLE UNIT $ 1.03

262





For the period ended June 30 (see note 2 in the generic notes) 2016CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in NAV $ 99 ADJUSTMENTS TO RECONCILE NET CASH PROVIDED BY (USED IN) OPERATIONSInterest for distribution purposes –Net realized loss (gain) on investments (12)Change in unrealized loss (gain) on investments (67)(Increase) decrease in accrued receivables –Increase (decrease) in accrued payables –Cost of investments purchased (2 321)Proceeds on sales of investments 326 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (1 975)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 2 000 Cash paid on redemption of redeemable units –Distributions paid to holders of redeemable units (20)NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 1 980 Net increase (decrease) in cash for the period 5 Cash (bank overdraft), beginning of period –CASH (BANK OVERDRAFT), END OF PERIOD $ 5

Interest received (paid) $ –Dividends received, net of withholding taxes $ 21

263






Total2016

NAV AT BEGINNING OF PERIOD $ – INCREASE (DECREASE) IN NAV 99 Early redemption fees –Proceeds from redeemable units issued 2 000 Reinvestments of distributions to holders of redeemable units –Redemption of redeemable units –NET INCREASE (DECREASE) FROM REDEEMABLE UNIT TRANSACTIONS 2 000 Distributions from net income (20)Distributions from net gains –Distributions from capital –TOTAL DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITS (20)NET INCREASE (DECREASE) IN NAV 2 079 NAV AT END OF PERIOD $ 2 079

264



June 30, 2016




with broad exposure, either directly or indirectly through

investment in other mutual funds managed by RBC GAM or

an affiliate, to the performance of a diversified portfolio of

high-quality global equity securities that have the potential

for long-term capital growth.







2016

Equities Financials 25.0 Information Technology 11.8 Industrials 10.3 Consumer Discretionary 10.2 Energy 9.9 Consumer Staples 8.1 Health Care 7.6 Materials 7.5 Telecommunication Services 4.5 Utilities 4.4 Diversified Financials 0.1 Other Net Assets 0.6 Total 100.0



or weakened by 1% in relation to all other currencies, with


decreased or increased, respectively, by approximately 0.7%. In

practice, actual results could differ from this sensitivity analysis

and the difference could be material.










June 30, 2016.




















June 30 2016

NAV Ownership

RBC Quant Canadian Equity Leaders ETF 32.4 12.1RBC Quant EAFE Equity Leaders ETF 21.8 2.9RBC Quant Emerging Markets Equity Leaders ETF 9.5 4.8RBC Quant U.S. Equity Leaders ETF 36.1 4.4

265



June 30, 2016










266

GENERIC NOTES TO FINANCIAL STATEMENTS (unaudited)

June 30, 2016

(also see ETF Specific Information)

1. The ETFs

The RBC ETFs, the exchange-traded funds (“ETF” or “ETFs”),

are open-ended mutual fund trusts governed by the laws

of the Province of Ontario and governed by a Master

Declaration of Trust. RBC GAM is the manager, trustee and

portfolio manager of the ETFs and its head office is located

at 155 Wellington Street West, 22nd Floor, Toronto, Ontario.

These financial statements were approved for issuance by the

Board of Directors of RBC GAM on August 10, 2016.

The units of the ETFs are listed on the Toronto Stock

Exchange (“TSX”). Investors may purchase or sell units on the

TSX in the same way as other securities listed on the TSX.

TSX TickerETF Symbol Index*

RBC 1-5 Year Laddered RBO Not applicable Corporate Bond ETF

RBC 1-5 Year Laddered RLB Not applicable Canadian Bond ETF

RBC Target 2016 Corporate RQD FTSE TMX Canada Bond Index ETF 2016 Maturity Corporate Bond

Index

RBC Target 2017 Corporate RQE FTSE TMX Canada Bond Index ETF 2017 Maturity Corporate Bond

Index

RBC Target 2018 Corporate RQF FTSE TMX Canada Bond Index ETF 2018 Maturity Corporate Bond

Index

RBC Target 2019 Corporate RQG FTSE TMX Canada Bond Index ETF 2019 Maturity Corporate Bond

Index

RBC Target 2020 Corporate RQH FTSE TMX Canada Bond Index ETF 2020 Maturity Corporate Bond

Index

RBC Target 2021 Corporate RQI FTSE TMX Canada Bond Index ETF 2021 Maturity Corporate Bond

Index

RBC Quant Canadian RCD Not applicable Dividend Leaders ETF

RBC Quant U.S. RUD Not applicable Dividend Leaders ETF RUD.U

RBC Quant U.S. Dividend RHU Not applicable Leaders (CAD Hedged) ETF

RBC Quant European Dividend RPD Not applicable Leaders ETF RPD.U

RBC Quant European Dividend RHP Not applicable Leaders (CAD Hedged) ETF

RBC Quant EAFE RID Not applicable Dividend Leaders ETF RID.U

TSX TickerETF Symbol Index*

RBC Quant EAFE Dividend RHI Not applicable Leaders (CAD Hedged) ETF

RBC Quant Emerging Markets RXD Not applicable Dividend Leaders ETF RXD.U

RBC Strategic Global RLD Not applicable Dividend Leaders ETF

RBC Quant Canadian RCE Not applicable Equity Leaders ETF

RBC Quant U.S. RUE Not applicable Equity Leaders ETF RUE.U

RBC Quant U.S. Equity Leaders RHS Not applicable (CAD Hedged) ETF

RBC Quant EAFE Equity RIE Not applicable Leaders ETF RIE.U

RBC Quant EAFE Equity RHF Not applicable Leaders (CAD Hedged) ETF

RBC Quant Emerging Markets RXE Not applicable Equity Leaders ETF RXE.U

RBC Strategic Global Equity RLE Not applicable Leaders ETF

* The indices are trademarks of FTSE TMX Debt Capital Markets Inc. (“FTDCM”). “TMX” is a trademark of TSX Inc. (“TSX”) and is used under licence. “FTSE” is a trademark of the London Stock Exchange Group companies (the “Exchange”) and is used by FTDCM under licence. These marks have been licensed for use for certain purposes to RBC GAM. The ETFs are not sponsored, endorsed, sold or promoted by FTDCM, FTSE International Limited, the Exchange or TSX (together, the “Licensor Parties”). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the indices and/or the figures at which the said indices stand at any particular time on any particular day or otherwise. The indices are compiled and calculated by FTDCM and all copyright in the values of the indices and their constituent lists vests in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person for any error in the indices and the Licensor Parties shall not be under any obligation to advise any person of any error therein.

2. Financial year/period

The information provided in these financial statements

and notes thereto is for the six-month periods ended

June 30, 2016 and 2015, or as at June 30, 2016 and

December 31, 2015. In the year an ETF or a series is

established, “period” represents the period from inception

to June 30 of that fiscal year.

3. Summary of significant accounting policies

These financial statements have been prepared in

compliance with International Financial Reporting Standards

(“IFRS”), which include estimates and assumptions made by

management that may affect the reported amounts of assets

(primarily valuation of investments), liabilities, income and

expenses during the reported periods. Actual results may

differ from estimates. The significant accounting policies of

the ETFs, which are investment entities, are as follows:267


June 30, 2016


Fair Value Option Financial instruments are designated as

fair value through profit and loss (“FVTPL”) on their initial

recognition (the fair value option). Derivative financial

instruments are held for trading (“HFT”) and are required

to be classified as FVTPL by nature. Other non-derivative

financial instruments can be designated as FVTPL if they

have a reliably measurable fair value and satisfy some criteria

such as (i) it eliminates or significantly reduces an accounting

mismatch and (ii) it is part of a portfolio that is managed

and its performance is evaluated on a fair value basis.

Management’s judgment is that all non-derivative financial

instruments are designated as FVTPL since all ETFs satisfy the

above criteria. The ETFs’ financial assets and liabilities, such

as foreign exchange contracts, are offset and the net amounts

are reported in the Statements of Financial Position. The

ETFs enter into various master netting or similar agreements

with counterparties, which provide the ETFs with the legally

enforceable right to offset financial assets and liabilities.

Redeemable units are measured at their respective

redemption values. All other assets and liabilities are

measured at amortized cost.

Determination of Fair Value The fair value of a financial

instrument is the amount at which the financial instrument

could be exchanged in an arm’s-length transaction between

knowledgeable and willing parties under no compulsion to

act. In determining fair value, a three-tier hierarchy based on

inputs is used to value the ETFs’ financial instruments. The

hierarchy of inputs is summarized below:

Level 1 – quoted prices (unadjusted) in active markets for

identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1

that are observable for the asset or liability, either directly

(i.e., as prices) or indirectly (i.e., derived from prices),

including broker quotes, vendor prices and vendor fair value

factors; and

Level 3 – inputs for the asset or liability that are not based on

observable market data (unobservable inputs).

Changes in valuation methods may result in transfers into or

out of an investment’s assigned level.

Investments are recorded at fair value, which is determined

as follows:

Equities – Common shares, preferred shares and exchange-

traded funds are valued at the closing price recorded by

the security exchange on which the security is principally

traded. In circumstances where the closing price is not within

the bid-ask spread, management will determine the points

within the bid-ask spread that are most representative of the

fair value.

Fixed-Income and Debt Securities – Bonds are valued at the

closing price quoted by major dealers or independent pricing

vendors in such securities.

Forward Contracts – Forward contracts are valued at the gain or

loss that would arise as a result of closing the position at the

valuation date. Any gain or loss at the close of business on

each valuation date is recorded as “Change in unrealized gain

(loss) on investments” in the Statements of Comprehensive

Income. The receivable/payable on forward contracts is

recorded separately in the Statements of Financial Position.

Realized gain (loss) on foreign exchange contracts is included

in “Net gain (loss) on foreign currencies and other net assets”

in the Statements of Comprehensive Income.

Fair Valuation of Investments – If the valuation methods described

above are not appropriate, RBC GAM will estimate the fair

value of an investment using established fair valuation

procedures, such as consideration of public information,

broker quotes, valuation models, fundamental analysis, matrix

pricing, discounts from market prices of similar securities or

discounts applied due to restrictions on the disposition of

securities, and external fair value service providers.

Foreign Exchange The value of investments and other

assets and liabilities in foreign currencies is translated into

Canadian dollars at the rate of exchange on each valuation

date. Purchases and sales of investments, income and

expenses are translated at the rate of exchange prevailing on

the respective dates of such transactions. Realized foreign

exchange gains/losses are included in “Net gain (loss) on

foreign currencies and other net assets” in the Statements of


Functional Currency The ETFs have their subscriptions,

redemptions and performance denominated in Canadian

dollars and, consequently, the Canadian dollar is the

functional currency for the ETFs.

268


June 30, 2016


Investment Transactions Investment transactions are

accounted for as of the trade date. Transaction costs, such as

brokerage commissions, incurred by the ETFs are recorded

in the Statements of Comprehensive Income for the period.

The unrealized gain and loss on investments is the difference

between fair value and average cost for the period. The basis

of determining the cost of portfolio assets, and realized

and unrealized gains and losses on investments, is average

cost which does not include amortization of premiums or

discounts on fixed-income and debt securities with the

exception of zero coupon bonds.

Income Recognition Dividend income is recognized on the

ex-dividend date and interest for distribution purposes is

coupon interest recognized on an accrual basis and/or

imputed interest on zero coupon bonds. “Other income

(loss)” includes income from income trusts. Distributions

received from income trusts are recognized based on the

nature of the underlying components, such as income,

capital gains and return of capital. “Other income received

from underlying funds” includes income earned by an ETF

from investments in underlying ETFs. Any premiums paid or

discounts received on the purchase of zero coupon bonds are

amortized on a straight line basis.

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per Unit Increase (decrease) in net

assets attributable to holders of redeemable units per unit

in the Statements of Comprehensive Income represents the

increase (decrease) in net assets attributable to holders of

redeemable units, divided by the average units outstanding

during the period.

Foreign Currencies The following is a list of abbreviations

used in the Schedule of Investment Portfolio:

AUD – Australian dollar HKD – Hong Kong dollarCAD – Canadian dollar JPY – Japanese yenCHF – Swiss franc NOK – Norwegian kroneDKK – Danish krone SEK – Swedish kronaEUR – Euro SGD – Singapore dollarGBP – Pound sterling USD – United States dollar

4. Financial instrument risk and capital management

RBC GAM is responsible for managing each ETF’s capital,

which is its net assets and consists primarily of its

financial instruments.

An ETF’s investment activities expose it to a variety of

financial risks. RBC GAM seeks to minimize potential adverse

effects of these risks on an ETF’s performance by employing

professional, experienced portfolio managers, daily monitoring

of the ETF’s holdings and market events and diversifying its

investment portfolio within the constraints of its investment

objectives. To assist in managing risks, RBC GAM also uses

internal guidelines, maintains a governance structure that

oversees each ETF’s investment activities and monitors

compliance with the ETF’s investment strategies, internal

guidelines and securities regulations.

Financial instrument risk, as applicable to an ETF,

is disclosed in its Notes to Financial Statements –

ETF Specific Information.

Liquidity risk

Liquidity risk is the possibility that investments in an ETF

cannot be readily converted into cash when required. An ETF

is exposed to liquidity risk to the extent that it is subject to

daily redemptions of redeemable units. Since the delivery of

redemptions is in the form of securities, an ETF is not exposed

to any significant liquidity risk. Liquidity risk is managed

by investing the majority of an ETF’s assets in investments

that are traded in an active market and that can be readily

disposed. In accordance with securities regulation, an ETF

must maintain at least 90% of its assets in liquid investments.

In addition, an ETF aims to retain sufficient cash and cash

equivalent positions to maintain liquidity, and has the ability

to borrow up to 5% of its net assets. All non-derivative financial

liabilities, other than redeemable units, are due within 90 days.

Any securities deemed to be illiquid are identified in the

Schedules of Investment Portfolio.

Credit risk

Credit risk is the risk that a loss could arise from a security

issuer or counterparty not being able to meet its financial

obligations. The carrying amount of investments and other

assets represents the maximum credit risk exposure as

disclosed in an ETF’s Statements of Financial Position. The

fair value of fixed-income securities includes a consideration

of the creditworthiness of the debt issuer. Credit risk exposure

is mitigated for those ETFs participating in a securities

lending program (see note 7). RBC GAM monitors each ETF’s

credit exposure and counterparty ratings daily. Rating data is

provided by the Licensor Parties.

269


June 30, 2016


Concentration risk

Concentration risk arises as a result of net financial

instrument exposures to the same category, such as

geographical region, asset type, industry sector or market

segment. Financial instruments in the same category have

similar characteristics and may be affected similarly by

changes in economic or other conditions.

Interest rate risk

Interest rate risk is the risk that the fair value of an ETF’s

interest-bearing investments will fluctuate due to changes

in market interest rates. The value of fixed-income and

debt securities, such as bonds, is affected by interest rates.

Generally, the value of these securities increases if interest

rates fall and decreases if interest rates rise.

Securities with a stated maturity date beyond the target

maturity year of the ETF have an effective maturity date in

the target year of the ETF, as determined with the rules based

on methodology developed by the Licensor Parties.

Currency risk

Currency risk is the risk that the value of investments

denominated in currencies, other than the functional

currency of a Fund, will fluctuate due to changes in foreign

exchange rates. The value of investments denominated in a

currency other than the functional currency is affected by

changes in the value of the functional currency in relation

to the value of the currency in which the investment is

denominated. When the value of the functional currency falls

in relation to foreign currencies, then the value of the foreign

investments rises. When the value of the functional currency

rises, the value of the foreign investments falls.

Other price risk

Other price risk is the risk that the value of financial

instruments will fluctuate as a result of changes in market

prices (other than those arising from interest rate or currency

risk), whether caused by factors specific to an individual

investment, its issuer, or all factors affecting all instruments

traded in a market or market segment.

5. Unitholders’ equity

The beneficial interest in the ETFs is divided into equal

interests of one class referred to as outstanding units.

Each ETF is authorized to issue an unlimited number of

redeemable and transferable units, each of which represents

an equal, undivided interest in the net asset value of

the ETF. Each unit outstanding shall participate pro rata

in any distributions made, other than management fee

distributions, and in the event of termination of the ETF, in

the net assets of the ETF.

On any trading day, an underwriter or designated broker

may place a subscription or redemption order for an integral

multiple of the prescribed number of units of an ETF. If the

order is accepted, the ETF will issue or redeem units to or

from the underwriter or designated broker within three

trading days thereafter. For each prescribed number of units

issued or redeemed, the underwriter or designated broker

must deliver or receive payment consisting of:

a) a basket of applicable securities for each prescribed

number of units; and

b) cash in an amount sufficient so that the value of the basket

of the applicable securities and cash delivered is equal to the

net asset value of the prescribed number of units plus the

distribution price adjustment, if applicable, of the ETF.

The distribution price adjustment is a distribution that has

been declared by the ETF and has reduced the net asset value

but has not yet been reflected in the market price. A trading

day is each day on which the TSX is open for trading.

A unitholder is entitled on any trading day to redeem units

for cash at a redemption price of 95% of net asset value

per unit of the ETF’s units at the next valuation following

receipt of the cash redemption request. To be effective on a

particular trading day, a cash redemption request must be

received by such time as RBC GAM may, from time to time,

determine on that trading day. If a cash redemption request

is received later than the prescribed time on a trading day or

a day which is not a trading day, the cash redemption request

shall be deemed to be received as of the next trading day.

The net asset value per unit is arrived at by dividing the

net asset value of the ETF by the total number of units

outstanding at the end of each trading day of the ETF.

The capital of the ETFs is managed in accordance with

the investment objective as outlined in the Prospectus.

6. Taxes

The ETFs qualify as “mutual fund trusts” or “unit trusts” as

defined in the Income Tax Act (Canada). In general, the ETFs

are subject to income tax; however, no income tax is payable

on net income and/or net realized capital gains which are

distributed to unitholders. In addition, for mutual fund

trusts, income taxes payable on net realized capital gains are

refundable on a formula basis when units of the ETFs are

270


June 30, 2016


redeemed. It is the intention of the ETFs to pay out all net

income and realized capital gains each year so that the ETFs

will not be subject to income taxes.

Accordingly, no provision for income taxes is recorded.

Net investment income and capital gains are distributable

to the unitholders in amounts determined under the

provisions of the Declaration of Trust on a monthly or

quarterly basis. All distributions, other than management fee

distributions, shall be credited to the unitholder pro rata in

accordance with the number of units held by them on record

date of the distribution. Management fee distributions shall

be credited to the unitholder entitled thereto.

Capital losses are available to be carried forward indefinitely

and applied against future capital gains. Non-capital losses

may be carried forward to reduce future taxable income for

up to 20 years.

7. Securities lending revenue

Certain of the ETFs lend portfolio securities from time to time

in order to earn additional income. Income from securities

lending is included in the Statements of Comprehensive

Income of the ETF. Each ETF will have entered into a

securities lending agreement with its custodian, RBC Investor

Services Trust (“RBC IS”). The aggregate market value of all

securities loaned by an ETF cannot exceed 50% of the assets

of an ETF. The ETF receives collateral, with an approved

credit rating of at least A, of at least 102% of the value of the

securities on loan. The ETF is indemnified by RBC IS for

any collateral credit or market loss. As such, the credit risk

associated with securities lending is considered minimal.

8. Administrative and other related-party transactions

Manager, Trustee and Portfolio Manager

RBC GAM is an indirect wholly owned subsidiary of

Royal Bank of Canada (“Royal Bank”). RBC GAM is the

manager, trustee and portfolio manager of the ETFs. RBC GAM

is responsible for the ETFs’ day-to-day operations, holds title

to the ETFs’ property on behalf of its unitholders, provides

investment advice and portfolio management services to the

ETFs and appoints underwriters or designated brokers for

the ETFs. RBC GAM is paid a management fee by the ETFs as

compensation for its services. The fee plus applicable taxes are

accrued daily and paid monthly in arrears.

RBC GAM in turn pays certain operating expenses of the

ETFs. These expenses include regulatory filing fees and other

day-to-day operating expenses including, but not limited to,

recordkeeping, accounting and fund valuation costs,

custody fees, audit and legal fees and the cost of preparing

and distributing annual and interim reports, prospectuses

and investor communications. The ETFs also pay certain

operating expenses directly, including the costs related to the

Independent Review Committee of the ETFs and the cost of

any new government or regulatory requirements introduced

and any borrowing costs (collectively, “other fund costs”), and

taxes (including, but not limited to, GST/HST).

Certain ETFs may invest in units of other Funds managed

by RBC GAM or its affiliates (“underlying mutual funds”).

The ETF’s ownership interest in underlying mutual funds

is disclosed in the Notes to Financial Statements – ETF

Specific Information.

Affiliates of RBC GAM that provide services to the ETFs in the

course of their normal businesses are discussed below.

Custodian and Valuation Agent

RBC IS is the custodian and valuation agent for the ETFs.

RBC IS is responsible for certain aspects of day-to-day

administration including holding the assets and the daily

calculation of the net asset value of the ETFs.

Designated Broker and Underwriter

RBC Dominion Securities Inc. is a designated broker and

an underwriter for the ETFs. As such, RBC Dominion

Securities Inc. may subscribe or redeem units of the ETFs.

Brokerage

The ETFs have established standard brokerage agreements at

market rates with related-party brokerages.

Other Related-Party Transactions

Pursuant to applicable securities legislation, the ETFs

relied on the standing instructions from the Independent

Review Committee with respect to the following

related-party transactions:


(b) investments in the securities of issuers for which a

related-party dealer acted as an underwriter during the

distribution of such securities and the 60-day period

following the conclusion of such distribution of the

underwritten securities to the public; and

271


June 30, 2016


(c) purchases of debt securities from or sales of debt

securities to a related-party dealer, where it acted

as principal.

The applicable standing instructions require that Related-

Party Trading Activities be conducted in accordance with

RBC GAM policy and that RBC GAM advise the Independent

Review Committee of a material breach of any standing

instruction. RBC GAM policy requires that an investment

decision in respect of Related-Party Trading Activities

(i) is made free from any influence of Royal Bank or its

associates or affiliates and without taking into account

any consideration relevant to Royal Bank or its affiliates

or associates, (ii) represents the business judgment of the

portfolio manager, uninfluenced by considerations other

than the best interests of the ETFs, (iii) is in compliance with

RBC GAM policies and procedures, and (iv) achieves a fair

and reasonable result for the ETFs.

9. Future accounting changes

The following IFRS standard has been issued, but is not

yet in effect:

In July 2014, the International Accounting Standards Board

finalized the reform of financial instruments accounting

and issued IFRS 9 (as revised in 2014), which contains the

requirements for a) the classification and measurement

of financial assets and financial liabilities, b) impairment

methodology and c) general hedge accounting. IFRS 9 (as

revised in 2014) will supersede IAS 39 Financial Instruments:

Recognition and Measurement in its entirety upon its

effective date.

The new standard, which becomes effective for annual

periods beginning on or after January 1, 2018, is not expected

to have a significant impact on the ETFs.

In December 2014, Disclosure Initiative was issued, which

amends IAS 1 Presentation of Financial Statements. The

amendments are designed to encourage entities to use

professional judgment to determine what information to

disclose in the financial statements and accompanying notes

by clarifying guidance on materiality, presentation and note

structure. These amendments are effective for annual periods

beginning on or after January 1, 2016. ETFs will amend

disclosures if required in the 2016 Financial Statements.

272

By Phone

Investors: 1-855-RBC-ETFS (722-3837) Dealers: 1-800-662-0652

By Mail

Head office:

RBC Global Asset Management Inc. 155 Wellington Street WestSuite 2200Toronto, Ontario M5V 3K7

For general mutual fund enquiries, write to:

RBC Global Asset Management Inc.P.O. Box 7500, Station AToronto, Ontario M5W 1P9

On the Internet

Visit our website at: www.rbcgam.com/etfs

RBC ETFs are managed by RBC Global Asset Management Inc. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © RBC Global Asset Management Inc. 2016

If you have questions regarding RBC ETFs, you can contact us using the following options:

PLEASE CALL US

2016 interim report - gamfunds.rbcgam.com/.../rbcetfs-interim-report-2016.pdf · 2016 interim...

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