Form FWP ROYAL BANK OF CANADA Filed by: ROYAL BANK OF CANADA
Filed Pursuant to Rule 433
Registration Statement No. 333-227001
Registration Statement No. 333-227001
December 31, 2020 RBC Global Tactical Equity Total Return Index Performance Factsheet Index Objectives: The RBC Global Tactical Equity Total Return Index is designed to
meet or exceed risk-adjusted returns relative to the benchmark by optimizing asset allocation (equities versus cash) and geographic exposure. This dynamic asset allocation is implemented by observing bullish or bearish trends in each of four
broad-based equity indices, on a monthly basis, to determine the exposure to each of these markets versus cash. Index Ticker Symbols: Bloomberg: RBCEGTUT Index Thomson Reuters: .RBCEGTUT Index Launch Date: February 18, 2019 Index Base Date:
December 19, 2007 Asset Class: Equity Fixed Income (Cash) Target Allocations: Large Cap US (50%) International Developed (25%) Emerging Market (15%) Small Cap US (10%) Rebalanced annually Last Rebalancing Date: December 16, 2020 Benchmark: MSCI
ACWI Net Total Return USD Index Bloomberg: M1WD Index Thomson Reuters: .MIWD00000NUS Liquidity: The Index tracks equity futures and cash. Each tracked futures contract averages significantly in excess of $1bn in daily trading volume.
Availability: Investors cannot invest directly in the Index. The Index can be used as an underlying for various investment vehicles to provide exposure to investors. Index Description The Index is comprised of four Sub-Indices, each of which
provides exposure to a different equity market, weighted as follows: 50% Large-Cap U.S. stocks, 10% Small-Cap U.S. stocks, 25% International Developed Market stocks, and 15% Emerging Market stocks. In order to obtain exposure to these markets,
the Index is allocated on a fixed-weight basis, rebalancing once a year, to the four Sub-Indices. Each Sub-Index obtains exposure to one of the relevant markets by tracking the performance of the relevant futures contract. On the specified
monthly determination date, the allocation of each Sub-index is determined based on the observation of a pre-defined Tactical Trigger: the relevant daily moving average (DMA). If a specific ETF that tracks the relevant market (indicated on page
3) is at or above its relevant DMA (a bullish trend), the Sub-Index will allocate to equity via the relevant futures contract plus the Federal Funds rate (to replicate the total return) or only to the Federal Funds rate if the ETF is below its
relevant DMA (a bearish trend). Performance1, 2 – Total Return (USD) 20 60 100 140 180 220 260 300 Dec 07 May 09 Nov 10 Apr 12 Sep 13 Mar 15 Aug 16 Jan 18 Jun 19 Dec 20 Index Benchmark Return (%) 2 Return p.a. (%) YoY Return (%) Index (USD) 1M 3M
YTD 1Y 3Y 5Y Base ’15 ’16 ’17 ’18 ’19 Index (I) 5.0 15.4 -12.5 -12.5 -0.3 5.6 6.3 -1.2 8.5 22.5 3.9 9.0 Benchmark (B) 4.6 14.7 16.3 16.3 10.1 12.3 6.1 -2.4 7.9 24.0 -9.4 26.6 Variation (I) - (B) 0.3 0.7 -28.8 -28.8 -10.4 -6.6 0.3 1.1 0.6 -1.4
13.3 -17.6 Volatility p.a. (%) 3 Sharpe Ratio4 12 Month Return Worst Drawdown Beta Index (USD) 1Y 5Y Base 1Y 5Y Base Best Worst (%) DUW5 1Y 5Y Index (I) 26.2 14.6 12.9 -0.36 0.38 0.50 43.2 -27.5 -32.8 11 0.74 0.71 Benchmark (B) 27.9 15.8 17.8
0.73 0.77 0.39 77.9 -51.0 -56.2 62 1.00 1.00 Variation (I) - (B) -1.7 -1.2 -4.9 -1.09 -0.39 0.11 -34.7 23.5 23.4 -52 - - 1 Daily data from December 19, 2007 to December 31, 2020. Index re-based to 100 on December 19, 2007. Please see the final
page for important information about the presentation of the performance information set forth in this document 2 Source: Solactive AG, Bloomberg, RBC Capital Markets 3 Based on daily returns, annualized with a 252-day factor 4 Based on the
average of daily excess returns against Fed Funds, annualized with a 252-day factor 5 Duration Under Water: number of months taken by the Index and the Benchmark to increase back to their respective previous highest level after a market decline
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December 31, 2020 Allocation History1 (over last 12 months) Allocation Date Large Cap US International Developed Emerging Market Small Cap US Cash Benchmark Performance
* December 16, 2020 50% 25% 15% 10% 0% TBD** November 18, 2020 50% 25% 15% 10% 0% 4.5% October 14, 2020 50% 25% 15% 10% 0% 4.1% September 16, 2020 50% 25% 15% 10% 0% 2.2% August 19, 2020 50% 25% 15% 10% 0% 0.6% July 15, 2020 50% 25% 15% 10% 0%
4.2% June 17, 2020 50% 25% 15% 10% 0% 4.3% May 13, 2020 0% 0% 0% 0% 100% 11.0% April 15, 2020 0% 0% 0% 0% 100% 2.2% March 18, 2020 0% 0% 0% 0% 100% 16.3% February 19, 2020 50% 25% 15% 10% 0% -30.4% 1 Determination Date was two business days
prior to Allocation Date. Target Allocations shown; Current allocations may vary * Benchmark performance between current and next Allocation Date; ** To be determined on the next Allocation Date (January 13, 2021) Current Allocation (as of
December 31, 2020) Emerging Market 15.1% International Developed 24.8% Small Cap US 10.0% Large Cap US 50.1% Equity Exposure Fed Funds Exposure Characteristics Snapshot As of Last Determination Date (December 14, 2020) Sub-Index (Indicator)
Closing Level Tactical Trigger Large Cap US (SPY) 364.66 15.0% ABOVE 200 DMA Int’l Developed (EFA) 71.53 8.4% ABOVE 100 DMA Emerging Market (EEM) 49.94 8.8% ABOVE 100 DMA Small Cap US (IWM) 189.93 17.5% ABOVE 100 DMA As of Month End (December
31, 2020) Sub-Index (Indicator) Closing Level Distance from DMA Large Cap US (SPY) 373.88 15.8% Int’l Developed (EFA) 72.96 8.8% Emerging Market (EEM) 51.67 10.6% Small Cap US (IWM) 196.06 17.3% Date Last Next Determination December 14, 2020
January 11, 2021 Allocation December 16, 2020 January 13, 2021 Rebalancing December 16, 2020 December 15, 2021 Monthly Returns (%, as of December 31, 2020) Index Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2020 -2.0% -7.6% -21.9% 0.0%
0.0% -0.5% 4.9% 5.9% -3.0% -1.9% 12.0% 5.0% -12.5% 2019 0.2% 0.5% 0.5% 3.5% -6.2% 5.4% 0.3% -3.8% 0.4% 2.5% 2.4% 3.4% 9.0% 2018 5.6% -4.2% -1.9% 0.6% 1.3% 0.0% 2.4% 2.1% 0.1% -2.3% 0.2% 0.2% 3.9% 2017 2.1% 2.7% 1.3% 1.3% 2.1% 0.8% 2.7% 0.1%
2.1% 2.2% 1.9% 1.4% 22.5% 2016 0.0% 0.0% 1.4% 0.3% 1.0% -0.4% 3.4% 0.1% 0.9% -1.9% 2.0% 1.4% 8.5% 2015 -1.7% 3.7% -1.2% 0.9% 0.4% -2.1% 1.5% -3.5% 0.7% 0.0% 0.0% 0.0% -1.2% 2014 -3.9% 4.3% 0.2% 0.3% 2.1% 1.7% -1.8% 2.4% -1.2% -3.1% 0.6% -0.1%
1.1% Benchmark Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2020 -1.1% -8.1% -13.5% 10.7% 4.3% 3.2% 5.3% 6.1% -3.2% -2.4% 12.3% 4.6% 16.3% 2019 7.9% 2.7% 1.3% 3.4% -5.9% 6.5% 0.3% -2.4% 2.1% 2.7% 2.4% 3.5% 26.6% 2018 5.6% -4.2% -2.2%
1.0% 0.1% -0.5% 3.0% 0.8% 0.4% -7.5% 1.5% -7.0% -9.4% 2017 2.7% 2.8% 1.2% 1.6% 2.2% 0.5% 2.8% 0.4% 1.9% 2.1% 1.9% 1.6% 24.0% 2016 -6.0% -0.7% 7.4% 1.5% 0.1% -0.6% 4.3% 0.3% 0.6% -1.7% 0.8% 2.2% 7.9% 2015 -1.6% 5.6% -1.6% 2.9% -0.1% -2.4% 0.9%
-6.9% -3.6% 7.9% -0.8% -1.8% -2.4% 2014 -4.0% 4.8% 0.4% 1.0% 2.1% 1.9% -1.2% 2.2% -3.2% 0.7% 1.7% -1.9% 4.2% Page 2 of 4
December 31, 2020 Summary of Index Methodology: RBC Global Tactical Equity Total Return Index 60% Domestic Allocation 40% International Allocation 50% Rebalanced
Annually 10% Rebalanced Annually RBC Large Cap US Tactical Equity Total Return Index RBC Small Cap US Tactical Equity Total Return Index 25% Rebalanced Annually 15% Rebalanced Annually RBC International Developed Tactical Equity Total Return
Index RBC Emerging Market Tactical Equity Total Return Index Tactical Trigger – Determined 2 Trading Days Before Allocation 200-day Moving Average SPDR S&P 500 ETF Trust (SPY) 100-day Moving Average iShares Russell 2000 ETF (IWM) 100-day
Moving Average iShares MSCI EAFE ETF (EFA) 100-day Moving Average iShares MSCI EM ETF (EEM) Monthly Allocation – Is Tactical Trigger Bullish or Bearish? Bullish Tactical Trigger SPDR S&P 500 ETF Spot above the Tactical Trigger E-mini
S&P 500 Future + Fed Funds OR Fed Funds Bearish Tactical Trigger SPDR S&P 500 ETF Spot below the Tactical Trigger Bullish Tactical Trigger iShares Russell 2000 ETF Spot above the Tactical Trigger E-mini Russell 2000 Future + Fed Funds
OR Fed Funds Bearish Tactical Trigger iShares Russell 2000 ETF Spot below the Tactical Trigger Bullish Tactical Trigger iShares MSCI EAFE ETF Spot above the Tactical Trigger MSCI EAFE Future + Fed Funds OR Fed Funds Bearish Tactical Trigger
iShares MSCI EAFE ETF Spot below the Tactical Trigger Bullish Tactical Trigger iShares MSCI EM ETF Spot above the Tactical Trigger MSCI EM Future + Fed Funds OR Fed Funds Bearish Tactical Trigger iShares MSCI EM ETF Spot below the Tactical
Trigger Page 3 of 4
December 31, 2020 This communication has been generated by employees of RBC Capital Markets’ Global Equity Linked Products, and is not a research report or a product
of RBC Capital Markets’ Research Department. This presentation should not be distributed to or shown to anyone other than the intended audience. This document is for informational purposes only and is not intended to set forth a final
expression of the terms and conditions of any offering, and may be amended, superseded or replaced in its entirety by subsequent summaries. When making an investment decision, any prospective investor should rely solely on the relevant
transaction documentation, which will contain the final terms and conditions of the transaction. The information contained herein has been compiled from sources believed to be reliable by RBC Capital Markets or any of its businesses.
Neither RBC Capital Markets nor any of its businesses or representatives has undertaken any independent review or due diligence of such sources. This document shall not constitute a commitment or recommendation to enter into any transaction
by any RBC entity. All information, terms and pricing set forth herein is indicative and subject to change without notice. Any opinions expressed herein reflect our judgment at the date and time hereof and are subject to change without
notice. The information contained in this document has been internally developed or taken from trade and statistical services and other sources which we deem reliable. Transactions of the type described herein may involve a high degree of
risk and the value of such investments may be highly volatile. Such risks may include, without limitation, risk of adverse or unanticipated market developments, risk of issuer default and risk of illiquidity. In certain transactions,
counterparties may lose their entire investment or incur an unlimited loss. This brief statement does not purport to identify or suggest all the risks (directly or indirectly) and other significant aspects in connection with transactions of
the type described herein, and investors should ensure that they fully understand the terms of the transaction, including the relevant risk factors and any legal, tax, regulatory or accounting considerations applicable to them, prior to
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with your own advisors, the appropriateness for you of the transaction before transacting. RBC is acting solely in the capacity of an arm’s length contractual counterparty and not in the capacity of your financial adviser or fiduciary. RBC
Capital Markets is the global brand name for the capital markets business of Royal Bank of Canada and its affiliates, including RBC Capital Markets, LLC (member FINRA, NYSE and SIPC); RBC Dominion Securities Inc. (member IIROC and CIPF);
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the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority.) Royal Bank of Canada has filed a registration statement (including a prospectus) with the SEC for the offerings to
which this document relates. Before you invest, you should read those documents and the other documents relating to these offerings that Royal Bank of Canada has filed with the SEC for more complete information about us and these offerings.
You may obtain these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Royal Bank of Canada, any agent or any dealer participating in this offering will arrange to send you the prospectus and any
related supplements if you so request by calling tollfree at 1-877-688-2301. ® Registered trademark of Royal Bank of Canada. Used under license. All rights reserved. Important Information About the Historical Performance of the Index The
Index was launched on February 18, 2019. Accordingly, all of the information about the performance of the Index prior to that date is based on hypothetical back-tested information. The hypothetical performance of the Index is based on
criteria that have been applied retroactively with the benefit of hindsight; these criteria cannot account for all financial risk that may affect the actual performance of the Index in the future. The future performance of the Index may
vary significantly from the hypothetical performance data in this document. For example, not all of the futures contracts and ETFs upon which the Index is based existed during all the periods shown; accordingly, we have used other related
financial assets for those periods, when needed. In addition, please note that the back-tested performance of the Index set forth in this document does not reflect the deduction of any fees and charges that would be applicable to a
financial instrument that references the Index. For the full Index methodology, please visit the following link: www.solactive.com Page 4 of 4