Desjardins rolls out ‘responsible investment’ ETFs on TSX

Sep 27th, 2018 | By | Category: Alternatives / Multi-Asset

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Desjardins Global Asset Management has rolled out a suite of ‘responsible investment’ ETFs on Toronto Stock Exchange.

Guy Cormier, President and CEO of Desjardins Group.

Guy Cormier, President and CEO of Desjardins Group.

The new range includes three multi-factor ETFs, providing exposure to Canadian, US, developed ex-US, and emerging market equities; two cap-weighted ETFs targeting Canadian and US stocks; and an actively managed Canadian aggregate bond ETF.

“Responsible investing isn’t just a passing fad,” said Guy Cormier, President and CEO of Desjardins Group. “It’s a concrete way for Desjardins members and clients to incorporate their social values into their financial decisions.

“As a cooperative financial institution, Desjardins is a natural leader in the responsible investing movement. We’re determined to keep pace with other leaders in the sector—it’s what our members and clients want, and it’s the right thing to do.”

Each of the six new funds filters out stocks that do not meet a minimum environmental, social and governance (ESG) standard. They also screen out companies with significant carbon emissions, thereby reducing the carbon footprint of the fund compared to similar non-ESG benchmarks.

The funds

The multi-factor ETFs track indices have been created in partnership with ERI Scientific Beta, a smart beta index provider and affiliate of EDHEC Risk Institute. The underlying indices seek to outperform their corresponding cap-weighted benchmarks by enhancing exposure to six factors: size, valuation, volatility, momentum, profitability and investment.

Desjardins RI Canada Multifactor – Low CO2 ETF (DRFC CN); MER – 0.50%
Desjardins RI USA Multifactor – Low CO2 ETF (DRFU CN)
; MER – 0.50%
Desjardins RI Developed ex-USA ex-Canada Multifactor – Low CO2 ETF (DRFD CN);
MER – 0.60%

The cap-weighted ETFs, also linked to Scientific Beta indices, track the performance of the large- and mid-cap equity markets within their respective universes. Securities that do not meet the above ESG and low-carbon requirements are eliminated.

Desjardins RI Canada – Low CO2 Index ETF (DRMC CN); MER – 0.25%
Desjardins RI USA – Low CO2 Index ETF (DRMU CN)
; MER – 0.25%

The active bond fund invests in debt securities issued by the government, government agencies and corporations in Canada.

Desjardins RI Active Canadian Bond – Low CO2 ETF (DRCU CN); MER – 0.35%

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