A Royal Bank of Canada subsidiary agreed to reimburse Massachusetts investors up to $2.9m for losses incurred from nontraditional exchange-traded funds, Massachusetts Commonwealth secretary William Galvin said.

Between 2006 and 2009, the New York-based subsidiary, RBC Capital Markets LLC, sold leveraged and inverse leveraged ETFs, which the state described as highly volatile due to its use of swaps and futures contracts. The firm was fined $250,000, partly for allegedly failing to train and supervise its agents selling the financial instruments.