Desjardins adds international equity ETF to responsible investment suite

May 4th, 2020 | By | Category: Equities

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Desjardins Global Asset Management has expanded its range of responsible investment ETFs with the launch of a new fund targeting developed market stocks excluding the US and Canada.

Desjardins adds international equity ETF to ‘responsible investment’ suite

Desjardins has also partnered with ERI Scientific Beta on a suite of ETFs that combine ESG and multi-factor investing.

The Desjardins RI Developed ex-USA ex-Canada – Low CO2 Index ETF (DRMD CN) has listed on the Toronto Stock Exchange with a management fee of 0.30%.

The fund is linked to the Scientific Beta Desjardins Developed ex-US ex-CA RI Low Carbon Index, extending Desjardins’ partnership with ERI Scientific Beta, a smart beta index provider and an affiliate of EDHEC Risk Institute.

Stocks are selected from the parent Scientific Beta Developed Markets (ex-USA ex-Canada) Index universe which covers large- and mid-cap equities from developed markets outside of North America.

The index filters out stocks that do not meet a minimum ESG standard as well as companies with significant carbon emissions, thereby reducing the carbon footprint of the index compared to similar non-ESG benchmarks.

The remaining constituents are weighted by market capitalization.

The fund complements two existing Desjardins ETFs that follow the same approach within the Canadian and US equity markets – the Desjardins RI Canada – Low CO2 Index ETF (DRMC CN) and Desjardins RI USA – Low CO2 Index ETF (DRMU CN) each comes with a management fee of 0.29%.

Desjardins and ERI Scientific Beta have also partnered on a series of ETFs that combine factor and responsible investment themes. The funds, which cover global, US, Canadian, international developed, and emerging market equities, utilize similar ESG and low carbon exclusions but weight their remaining constituents so as to enhance exposure to six factors: size, valuation, volatility, momentum, profitability, and investment.

Nicolas Richard, Chief Executive Officer at Desjardins Global Asset Management, commented, “We are pleased to offer our investors attractive growth potential while supporting the transition to a greener economy.”

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