Royal Bank of Canada filed a free writing prospectus on November 4, 2026, disclosing terms for Capped Return Dual Directional Buffer Notes linked to the S&P 500 Index, due December 5, 2028, with a CUSIP of 78018DQK6.

Key Highlights

  • Maturity Date: December 5, 2028, with a Valuation Date of November 30, 2028 and a Trade Date of November 30, 2026.
  • Maximum Upside Return: At least 21%, to be determined on the Trade Date, with a 100% Participation Rate subject to that cap.
  • Buffer Percentage: 15%, meaning the Buffer Value is set at 85% of the Initial Underlier Value.
  • Absolute Value Return: If the S&P 500 finishes at or below the Initial Underlier Value but at or above the Buffer Value, investors receive a positive return equal to the absolute value of the negative Underlier Return, capped at 15%.
  • Principal at Risk: If the Final Underlier Value falls below the Buffer Value, investors lose 1% of principal for each 1% the index is below the Initial Underlier Value in excess of the 15% buffer.
  • Initial Estimated Value: Expected to be between $922.50 and $972.50 per $1,000 principal amount, which the filing states will be less than the public offering price.
  • No Interest Payments: The Notes do not pay interest over their term.

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

According to the free writing prospectus filed under Registration Statement No. 333-275898 and pursuant to Rule 433, Royal Bank of Canada is offering Capped Return Dual Directional Buffer Notes linked to the S&P 500 Index (Bloomberg symbol "SPX"). The Notes are denominated in $1,000 principal amounts, with an Issue Date of December 3, 2026, and a Maturity Date of December 5, 2028. The Trade Date and Valuation Date are both November 30, 2026, and November 30, 2028, respectively.

The filing describes three distinct payoff scenarios at maturity. If the Final Underlier Value exceeds the Initial Underlier Value, investors receive $1,000 plus a return equal to the lesser of the Underlier Return (at a 100% Participation Rate) and the Maximum Upside Return of at least 21%. If the index declines but remains at or above 85% of the Initial Underlier Value, the filing states that investors receive a one-for-one positive return equal to the absolute value of the negative Underlier Return, with this return capped at 15%. If the index falls below the Buffer Value, the filing states that investors "will lose some or a substantial portion of your principal amount at maturity," with losses calculated as 1% per 1% decline beyond the 15% buffer.

The filing discloses that the initial estimated value of the Notes is expected to be between $922.50 and $972.50 per $1,000 principal amount and will be less than the public offering price. The Notes carry no interest payments, and all payments are subject to the credit risk of Royal Bank of Canada. The filing identifies multiple risk factors, including uncertain U.S. federal income tax consequences, potential lack of an active secondary trading market, and possible conflicts of interest involving RBC Capital Markets as Calculation Agent.

What Was Disclosed

Royal Bank of Canada disclosed the key terms, payoff structure, risk considerations, and initial estimated value range for structured notes linked to the S&P 500 Index, maturing December 5, 2028, via a free writing prospectus filed with the SEC.