Desjardins unveils EM multifactor ETF with controlled volatility

Dec 1st, 2017 | By | Category: Equities

Desjardins Global Asset Management (DGAM) has launched the Desjardins Emerging Markets Multifactor-Controlled Volatility ETF (DFE CN) on the Toronto Stock Exchange.

Nicolas Richard, chief operating officer at Desjardins Global Asset Management.

Nicolas Richard, chief operating officer at Desjardins Global Asset Management.

DFE complements the firm’s existing suite of three multifactor funds which includes ETFs providing exposure to US, Canadian, and developed international (ex-US, ex-Canada) equities.

Each fund in the suite tracks an index developed by Scientific Beta, a commercial venture of EDHEC Risk Institute, and is designed to amplify exposure to a selection of equity market risk factors – value, momentum, size and low volatility.

DFE tracks the Scientific Beta Emerging Markets Multifactor–Controlled Volatility Index.

Nicolas Richard, chief operating officer of DGAM, commented: “Given our earlier launches of developed market ETFs, an emerging market solution was the next major market segment selected for our Multifactor – Controlled Volatility ETF approach. We are now in a position to offer our unique and innovative construction strategy to all of our clients for all of the major markets of the world.”

The ETFs tracking US and Canadian equities were the first in the suite to be launched, making their debut in April 2017. Their management fees are 0.50% each. The international fund followed in May and currently charges fees of 0.60%.

DFE has been launched with a management fee of 0.65%.

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