Royal Bank of Canada filed a free writing prospectus (FWP) disclosing the terms of Enhanced Return Notes linked to the S&P 500 Market Agility 10 TCA 0.5% Decrement Index, with a stated maturity date of November 28, 2031 and a trade date of November 24, 2026.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), filed pursuant to Registration Statement No. 333-275898 under Rule 433.
  • Participation Rate: At least 185% of the Underlier Return, to be determined on the Trade Date (November 24, 2026).
  • Principal Protection: If the Final Underlier Value is less than or equal to the Initial Underlier Value, investors receive only $1,000 per $1,000 principal amount, with no additional return.
  • Initial Estimated Value: Expected to be between $937.50 and $987.50 per $1,000 principal amount, less than the public offering price.
  • CUSIP: 78018DQJ9; the Underlier carries Bloomberg symbol "SPMKTD".
  • Maturity Date: November 28, 2031, with the Valuation Date set as November 24, 2031.
  • No Interest Payments: According to the filing, "The Notes Do Not Pay Interest."

Terms and Structure of Royal Bank of Canada's S&P 500 Market Agility-Linked Notes

According to the filing, the Notes are structured so that investors receive enhanced upside participation if the Final Underlier Value - the closing value of the S&P 500 Market Agility 10 TCA 0.5% Decrement Index on November 24, 2031 - exceeds the Initial Underlier Value recorded on the Trade Date of November 24, 2026. In that scenario, the payment per $1,000 principal is calculated as $1,000 plus ($1,000 multiplied by the Underlier Return multiplied by the Participation Rate of at least 185%). If the index finishes flat or lower, investors receive only their $1,000 principal back, the filing disclosed.

The filing noted that the initial estimated value of the Notes is expected to fall between $937.50 and $987.50 per $1,000 principal amount as of the Trade Date, and that this estimate "will be less than the public offering price of the Notes." The filing also disclosed that RBC Capital Markets LLC ("RBCCM") serves as Calculation Agent, and that "RBCCM Coordinated with the Index Sponsor in the Development of the Underlier and Its Sub-Indices," which the filing lists as a potential conflict of interest.

The filing identified a range of risk factors specific to these Notes. Among them, the filing stated that payments are subject to RBC's credit risk, there may be no active secondary trading market, and the Underlier has "a Limited Operating History and May Perform in Unanticipated Ways." The filing further disclosed that the Underlier and its sub-indices are subject to deductions - including transaction costs and a 0.5% decrement - that "Will Adversely Affect Their Performance." The Notes do not pay interest during their term, and investors may be required to recognize taxable income prior to maturity, according to the filing.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus disclosing the key terms, payment structure, estimated value range, and selected risk considerations for Enhanced Return Notes linked to the S&P 500 Market Agility 10 TCA 0.5% Decrement Index, with a maturity date of November 28, 2031.