Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms for Capped Enhanced Return Buffer Notes linked to the Russell 2000 Index, due November 29, 2028, with CUSIP 78018DQF7.

Key Highlights

  • Issuer: Royal Bank of Canada, filing under Registration Statement No. 333-275898 pursuant to Rule 433.
  • Underlier: The Russell 2000 Index (Bloomberg symbol "RTY"), with a Trade Date of November 24, 2026, and Maturity Date of November 29, 2028.
  • Participation Rate: 150% of the Underlier Return on the upside, subject to a Maximum Return of at least 25%, to be determined on the Trade Date.
  • Buffer Percentage: 10%, meaning the Buffer Value equals 90% of the Initial Underlier Value; investors bear losses only beyond that threshold.
  • Initial Estimated Value: Expected to be between $907.50 and $957.50 per $1,000 principal amount, less than the public offering price.
  • No Interest Payments: The notes do not pay interest, according to the filing's risk considerations.

Structure and Payment Terms of RBC's Russell 2000 Buffer Notes

According to the filing, Royal Bank of Canada is offering Capped Enhanced Return Buffer Notes linked to the Russell 2000 Index, with an Issue Date of November 30, 2026, and a Valuation Date of November 24, 2028. The notes are denominated in $1,000 principal amounts and carry CUSIP 78018DQF7. The filing describes three distinct payment scenarios at maturity, each determined by comparing the Final Underlier Value to the Initial Underlier Value.

If the Final Underlier Value is greater than the Initial Underlier Value, the filing states that investors will receive $1,000 plus the lesser of (a) the Underlier Return multiplied by the 150% Participation Rate, or (b) the Maximum Return of at least 25%. If the Final Underlier Value is less than or equal to the Initial Underlier Value but greater than or equal to the Buffer Value of 90% of the Initial Underlier Value, investors receive their $1,000 principal. However, the filing warns that if the Final Underlier Value falls below the Buffer Value, investors "will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value in excess of the Buffer Percentage," and may "lose some or a substantial portion" of principal.

The filing notes that the initial estimated value will be less than the public offering price and describes this in more detail in the accompanying preliminary pricing supplement. The filing identifies multiple risk factors, including the company's credit risk, potential conflicts of interest arising from RBCCM's role as Calculation Agent, the absence of an active secondary trading market, uncertain U.S. federal income tax consequences, and small-capitalization companies risk specific to the Russell 2000 underlier.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus summarizing the key terms, payment structure, and risk considerations for structured notes linked to the Russell 2000 Index, maturing November 29, 2028, with a 10% buffer and 150% upside participation, capped at a maximum return of at least 25%.