Row 50165

Row ID: 50165 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 50165 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

RQL is a target maturity bond ETF ([link](https://www.rbcgam.com/en/ca/products/etfs/RQL/detail)). The ETF terminates at the end of September 2024. The linked website states:

- market price: 20.36 - par value: 20.46 - current yield: 1.84% - yield to maturity: 5.02%

I understand that if the current yield (1.84%) is below the yield to maturity (5.02%) the fund trades at a discount, which it does (20.36 < 20.46). However, I can’t explain the significant gap between current yield and yield to maturity.

Let’s say I hold until maturity (September 2024). Roughly ballparking cash flows I should expect:

- a few more distributions at around 1.84%. - an additional 10 cents because the market price will converge to par value.

But that’s far away from a yield of 5.02%. How can this discrepancy be explained? What do I have to do to actually realize the yield to maturity?

FieldValue
text RQL is a target maturity bond ETF ([link](https://www.rbcgam.com/en/ca/products/etfs/RQL/detail)). The ETF terminates at the end of September 2024. The linked website states: - market price: 20.36 - par value: 20.46 - current yield: 1.84% - yield to maturity: 5.02% I understand that if the current yield (1.84%) is below the yield to maturity (5.02%) the fund trades at a discount, which it does (20.36 < 20.46). However, I can’t explain the significant gap between current yield and yield to matu…
label r/investing
dataType post
communityName r/investing
datetime 2024-05-22
username_encoded Z0FBQUFBQm5Lak1TdnJyd01KTFllVGxxZGdGMl9ocDN4c3FlYzNsUi1obXBwcnVON0k4MzFyaHA5cnphOS1LX0ozaUdScFFSZEJaS0dwNnVaTjVYMFV3YUNDTnk5dkpERFE9PQ==
url_encoded Z0FBQUFBQm5Lak9paHYwLU4taUdEaFIyYzQySnFGUThmU0FGM0dqRVZLQXNYT3dCcjlqZ1FmMWMtaGNlVnZORV9VWVM0by1XMzV4V0w4SnZZRHlhd2xTSlQ0bEdZbGxMcng3ZFQ3TExwSFZlb1VUbGJNVXlZT0U2RV9vMGpscUduX19aWV9fLXVFNXJ5ZjJqVG5zdWFOdkxoVm9oV2VxLXpOa2hPWWxmUHJma0JMMTd2azdpSWYtNlgtdElWUG9KdVUzaXJweVpxVDhX

Raw Record

{
  "text": "RQL is a target maturity bond ETF ([link](https://www.rbcgam.com/en/ca/products/etfs/RQL/detail)). The ETF terminates at the end of September 2024. The linked website states:\n\n- market price: 20.36\n- par value: 20.46\n- current yield: 1.84%\n- yield to maturity: 5.02%\n\nI understand that if the current yield (1.84%) is below the yield to maturity (5.02%) the fund trades at a discount, which it does (20.36 < 20.46). However, I can’t explain the significant gap between current yield and yield to maturity. \n\nLet’s say I hold until maturity (September 2024). Roughly ballparking cash flows I should expect:\n\n- a few more distributions at around 1.84%.\n- an additional 10 cents because the market price will converge to par value.\n\nBut that’s far away from a yield of 5.02%. How can this discrepancy be explained? What do I have to do to actually realize the yield to maturity?\n",
  "label": "r/investing",
  "dataType": "post",
  "communityName": "r/investing",
  "datetime": "2024-05-22",
  "username_encoded": "Z0FBQUFBQm5Lak1TdnJyd01KTFllVGxxZGdGMl9ocDN4c3FlYzNsUi1obXBwcnVON0k4MzFyaHA5cnphOS1LX0ozaUdScFFSZEJaS0dwNnVaTjVYMFV3YUNDTnk5dkpERFE9PQ==",
  "url_encoded": "Z0FBQUFBQm5Lak9paHYwLU4taUdEaFIyYzQySnFGUThmU0FGM0dqRVZLQXNYT3dCcjlqZ1FmMWMtaGNlVnZORV9VWVM0by1XMzV4V0w4SnZZRHlhd2xTSlQ0bEdZbGxMcng3ZFQ3TExwSFZlb1VUbGJNVXlZT0U2RV9vMGpscUduX19aWV9fLXVFNXJ5ZjJqVG5zdWFOdkxoVm9oV2VxLXpOa2hPWWxmUHJma0JMMTd2azdpSWYtNlgtdElWUG9KdVUzaXJweVpxVDhX"
}
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