Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms for Capped Enhanced Return Buffer Notes linked to the S&P 500 Index, due December 5, 2028, with a CUSIP of 78018DQM2.

Key Highlights

  • Participation Rate: The notes offer 150% participation in any upside return of the S&P 500 Index, subject to a Maximum Return of at least 22%, to be determined on the Trade Date.
  • Buffer Protection: A 10% buffer applies, meaning the Buffer Value is set at 90% of the Initial Underlier Value; investors receive full principal if the Final Underlier Value is at or above this threshold.
  • Principal at Risk: If the Final Underlier Value falls below the Buffer Value, investors lose 1% of principal for each 1% decline in excess of the 10% buffer.
  • Initial Estimated Value: The initial estimated value is expected to be between $920.40 and $970.40 per $1,000 principal amount, which will be less than the public offering price.
  • Key Dates: The Trade Date is November 30, 2026, the Issue Date is December 3, 2026, the Valuation Date is November 30, 2028, and the Maturity Date is December 5, 2028.
  • No Interest Payments: According to the filing, the notes do not pay interest.
  • Registration: Filed pursuant to Rule 433 under Registration Statement No. 333-275898.

Royal Bank of Canada S&P 500 Buffer Notes: Structure and Terms

According to the free writing prospectus, Royal Bank of Canada ("RBC") is offering Capped Enhanced Return Buffer Notes linked to the S&P 500 Index. The notes are structured so that if the Final Underlier Value exceeds the Initial Underlier Value at the Valuation Date, investors receive $1,000 plus the lesser of 150% of the Underlier Return or the Maximum Return of at least 22%. The exact Maximum Return will be set on the Trade Date of November 30, 2026.

The filing discloses a principal protection mechanism described as "contingent." If the S&P 500 closes on the Valuation Date (November 30, 2028) at or above 90% of its Initial Underlier Value, investors recover their full $1,000 principal per note. However, if the index falls below the Buffer Value, the filing states investors will lose 1% of principal for each 1% the Final Underlier Value is below the Initial Underlier Value in excess of the 10% buffer, and that investors "will lose some or a substantial portion" of their principal amount at maturity.

The filing notes that the initial estimated value of the notes, as determined by Royal Bank of Canada as of the Trade Date, is expected to be between $920.40 and $970.40 per $1,000 principal amount, and will be less than the public offering price. The filing identifies several risk considerations, including that payments on the notes are subject to RBC's credit risk, there may not be an active secondary trading market, and that the U.S. federal income tax consequences of an investment are described as uncertain. RBC Capital Markets LLC ("RBCCM") serves as the calculation agent, and the filing notes that this role "may create conflicts of interest."

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus outlining the terms of structured notes linked to the S&P 500 Index, due December 5, 2028, including a 150% participation rate, a 10% buffer, an at-least-22% maximum return cap, and an initial estimated value between $920.40 and $970.40 per $1,000 note.