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 and maturing December 5, 2028.

Key Highlights

  • Issuer and CUSIP: Royal Bank of Canada is the issuer; the notes carry CUSIP 78018DQP5.
  • Participation rate: The filing states a 150% participation rate on the Underlier Return, subject to a Maximum Return of at least 29%, to be determined on the Trade Date of November 30, 2026.
  • Buffer protection: A 10% Buffer Percentage applies, with the Buffer Value set at 90% of the Initial Underlier Value; principal is returned in full if the Final Underlier Value stays at or above that level.
  • Principal loss risk: If the Final Underlier Value falls below the Buffer Value, investors lose 1% of principal for each 1% the index declines beyond the 10% buffer.
  • Initial estimated value: According to the filing, the initial estimated value is expected to be between $919.50 and $969.50 per $1,000 principal amount, and will be less than the public offering price.
  • Key dates: The Trade Date is November 30, 2026; Issue Date is December 3, 2026; Valuation Date is November 30, 2028; Maturity Date is December 5, 2028.
  • No interest payments: The filing discloses that the notes do not pay interest.

Terms and Structure of Royal Bank of Canada's Russell 2000 Buffer Notes

Royal Bank of Canada disclosed the terms of its Capped Enhanced Return Buffer Notes linked to the Russell 2000 Index (Bloomberg symbol "RTY") through a free writing prospectus filed pursuant to Rule 433 under Registration Statement No. 333-275898. According to the filing, these notes are structured products with a two-year-plus tenor, running from an Issue Date of December 3, 2026 to a Maturity Date of December 5, 2028.

The filing describes a tiered payment structure at maturity based on the performance of the Russell 2000 Index. If the Final Underlier Value exceeds the Initial Underlier Value, investors receive $1,000 plus the lesser of the Underlier Return multiplied by the 150% Participation Rate or the Maximum Return, which will be at least 29%. If the index finishes flat or down but remains at or above 90% of its starting level, the filing states investors receive their $1,000 principal back in full. Below that threshold, the notes lose value dollar-for-dollar beyond the buffer, and according to the filing, investors "will lose some or a substantial portion of your principal amount at maturity."

The filing notes that the initial estimated value of between $919.50 and $969.50 per $1,000 principal amount will be less than the public offering price, and attributes this difference to costs and the economics of the hedging arrangements. The filing also identifies several risk considerations, including credit risk tied to Royal Bank of Canada, potential conflicts of interest involving RBCCM as calculation agent, the absence of an active secondary trading market, and uncertain U.S. federal income tax consequences. The filing urges investors to review the accompanying preliminary pricing supplement and related documents available on SEC EDGAR.

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus detailing terms for structured notes linked to the Russell 2000 Index, including a 150% participation rate, a 10% principal buffer, a maximum return of at least 29%, and an initial estimated value range of $919.50 to $969.50 per $1,000 note.