Royal Bank of Canada
Market Linked Securities
Filed Pursuant to Rule 433
Registration No. 333-259205
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Market Linked Securities – Leveraged Upside Participation to a Cap and Fixed Percentage Buffered Downside Principal at Risk
Securities Linked to an ETF Basket
Term Sheet to Preliminary Pricing Supplement No. WFC171 dated November 30, 2021
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Issuer
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Royal Bank of Canada
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Term
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Approximately 4 years
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Basket
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A basket consisting of the SPDR® Dow Jones® Industrial Average ETF Trust (50.00%); the SPDR® S&P MidCap 400® ETF Trust (30.00%); and the iShares®
Russell 2000 ETF (20.00%)
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Pricing Date
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December 30, 2021*
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Original Issue Date
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January 4, 2022*
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Principal
Amount
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$1,000 per security (each security will be offered at an initial public offering price of $1,000)
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Payment at
Maturity
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See “How the maturity payment amount is calculated” on page 3
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Maturity Date
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January 5, 2026*
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Initial Basket
Value
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100
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Final Basket
Value
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100 x (1+ the sum of the component return of each basket component multiplied by its weighting)
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Maximum
Maturity
Payment Amount
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[$1,315 - $1,355] (to be determined on the pricing date)
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Buffer Value
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90 (90% of the Initial Basket Value)
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Participation Rate
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110%
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Valuation Date
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December 26, 2025*
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Calculation
Agent
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RBC Capital Markets, LLC, a wholly-owned subsidiary of the issuer
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Denominations
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$1,000 and any integral multiple of $1,000
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Underwriting
Discount and
Commission
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Up to 3.825%, of which dealers, including those using the trade name Wells Fargo Advisors (“WFA”), may receive a selling concession of 2.25% and WFA will receive a distribution expense fee of 0.075%. In
respect of certain securities sold in this offering, our affiliate, RBC Capital Markets, LLC, may pay a fee of up to $1.50 per security to selected securities dealers in consideration for marketing and other services in connection with
the distribution of the securities to other securities dealers.
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CUSIP
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78016F6W9
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Linked to a basket of exchange traded funds
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Unlike ordinary debt securities, the securities do not pay interest or repay a fixed amount of principal at maturity. Instead, the securities provide for a payment at maturity that may be greater than, equal
to or less than the initial public offering price of the securities, depending on the performance of the Basket from its Initial Basket Value to its Final Basket Value.
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Investors may lose up to 90% of the initial public offering price
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All payments on the securities are subject to the credit risk of Royal Bank of Canada, and you will have no ability to pursue any basket component or any securities held by a basket component for payment;
if Royal Bank of Canada defaults on its obligations, you could lose some or all of your investment
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No periodic interest payments or dividends
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No exchange listing; designed to be held to maturity
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Hypothetical
Final Basket Value |
Hypothetical Percentage Change
from the Initial Basket Value to
the Hypothetical
Final Basket Value |
Hypothetical Maturity
Payment Amount per
Security(1)
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Hypothetical Pre-Tax
Total Rate of Return
on the Securities
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0.00
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-100.00%
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$100.00
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-90.00%
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10.00
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-90.00%
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$200.00
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-80.00%
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20.00
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-80.00%
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$300.00
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-70.00%
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30.00
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-70.00%
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$400.00
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-60.00%
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40.00
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-60.00%
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$500.00
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-50.00%
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50.00
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-50.00%
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$600.00
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-40.00%
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60.00
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-40.00%
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$700.00
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-30.00%
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70.00
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-30.00%
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$800.00
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-20.00%
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80.00
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-20.00%
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$900.00
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-10.00%
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90.00 (2)
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-10.00%
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$1,000.00
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0.00%
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95.00
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-5.00%
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$1,000.00
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0.00%
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100.00 (3)
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0.00%
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$1,000.00
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0.00%
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110.00
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10.00%
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$1,110.00
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11.00%
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120.00
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20.00%
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$1,220.00
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22.00%
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130.00
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30.00%
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$1,330.00
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33.00%
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130.45 | 30.45% |
$1,335.00 |
33.50% |
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140.00
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40.00%
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$1,335.00
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33.50%
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150.00
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50.00%
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$1,335.00
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33.50%
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160.00
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60.00%
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$1,335.00
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33.50%
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(1) |
Based on a hypothetical maximum maturity payment amount of $1,335.00 (the mid-point of the range of maximum maturity payment amounts set forth in this term sheet).
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(2) |
This is the Buffer Value.
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(3) |
This is the Initial Basket Value.
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If the Final Basket Value is greater than the Initial Basket Value, the maturity payment amount per security will equal the lesser of:
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(i) |
(ii) |
the maximum maturity payment amount
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If the Final Basket Value is equal to or less than the Initial Basket Value but greater than or equal to the Buffer Value, the maturity payment amount per security will equal the issue price of $1,000.00
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If the Final Basket Value is less than the Buffer Value, the maturity payment amount per security will equal:
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Your investment may result in a loss of up to 90% of your principal
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You will not receive interest payments on the securities
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Your yield may be lower than the yield on a standard debt security of comparable maturity
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Your return is limited and will not reflect the return of owning the shares of the basket components or the common stocks held by the basket components
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The amount to be paid at maturity is not linked to the prices of the basket components at any time other than the valuation date
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Owning the securities is not the same as owning the shares of the basket components or the common stocks held by the basket components
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Changes in the prices of the basket components may offset each other
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The securities will be debt obligations of Royal Bank of Canada. No other company or entity will be responsible for payments under the securities
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The tax treatment of the securities is uncertain and gain on the securities may be treated as ordinary income under the constructive ownership rules
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There may not be an active trading market for the securities
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Many factors affect the market value of the securities
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An investment in securities linked to IWM is subject to risks associated with an investment in stocks with a small market capitalization
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The correlation between the performance of a basket component and the performance of its Underlying Index may be imperfect, especially during periods of market volatility
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The policies of the investment advisers of the basket components and changes that affect the Underlying Indices could affect the amount payable on the securities and their market value
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We have no affiliation with the Index Sponsors and will not be responsible for any actions taken by the Index Sponsors
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Historical prices of the basket components should not be taken as an indication of their future prices during the term of the securities
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Our initial estimated value of the securities will be less than the initial public offering price
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The price, if any, at which you may be able to sell your securities prior to maturity may be less than the initial public offering price and our initial estimated value
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The initial estimated value of the securities is an estimate only, calculated as of the time the terms of the securities are set
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Hedging transactions may affect the return on the securities
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Potential conflicts of interest could arise
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Anti-dilution adjustments relating to the shares of a basket component do not address every event that could affect such shares
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The calculation agent may postpone the valuation date and, therefore, determination of the Final Basket Value and the maturity date if a market disruption event occurs on the valuation date
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There are potential conflicts of interest between you and the calculation agent
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