DRMD ETF Hits 5-Year Mark With A Strong Performance and Global ESG Focus
Despite shifting trends, ESG investing remains viable. Desjardins' DRMD ETF offers global net-zero exposure with strong 5-year returns, balancing sustainability and performance.
The current fervor for sustainable investment has declined compared to a few years ago, partly due to a changing political landscape, waning investor sentiment, and the growing interest in Artificial Intelligence (AI). Despite these factors, there are still compelling, sustainable investment-oriented solutions that investors can utilize within their portfolios. An example of such a solution is the Desjardins RI Developed ex-USA ex-Canada - Net-Zero Emissions Pathway ETF (Ticker: DRMD), which recently attained a 5-year performance track record.
DRMD’s Investment Focus
Launched on May 1, 2020, DRMD is a part of Desjardin’s Net-Zero emissions pathway ETF suite. These ETF offerings are thematically aligned with the Net Zero Emissions by 2050 Scenario, an initiative that outlines a path for the global energy sector to achieve net zero CO2 emissions by 2050, with advanced economies reaching net zero emissions in advance of others. This Desjardin ETF suite invests in (and increases its allocation to) companies that are low-carbon emitters, while also working with specific companies to reduce their carbon footprint.
As noted in Desjardin’s ETF prospectus, securities selected for this portfolio suite will be large- and mid-capitalization-oriented. Furthermore, these ETFs invest in most sectors, including energy. Organizations that produce tobacco, thermal coal, or unconventional weapons or whose ESG practices are deemed deficient are excluded.
DRMD’s Vale Proposition
As evidenced in the name, DRMD is an international equity solution that excludes North American equities but provides global exposure to various sectors across developed economies. In looking at the fund’s geographic and sector composition via Trackinsight, the strategy’s leading geographic exposure is to Japan - the world’s fourth largest economy- and the predominant sector exposure is Financials. Regarding the fund’s holdings, among the top-held companies are well-known European firms, such as SAP, NESTLE SA, ASML HOLDING NV, and ASTRAZENECA PLC. As such, while this solution does seek to address carbon risk, investors will still be exposed to a broad range of companies across the global landscape, allowing them to benefit from their ongoing business activities.
DRMD’s Performance
Over the past five years, DRMD has exhibited compelling performance. As observed from the table below, taken from Trackinsight (as of May 6, 2025, at 9:30 AM), the fund's trailing returns have been positive. Given the volatility that occurred in recent months, the elevated volatility number within the 3-month column is not surprising. Finally, the ‘risk-to-reward’ ratio indicates how well an investment performs relative to the risk undertaken. With the ratio being above or around one, this suggests that the investment’s returns have been well-balanced with the risk taken.
Takeaway
While sustainable solutions may not be top-of-mind for many investors at this juncture, there are ESG-oriented solutions that can be a value-add to portfolios of investors. Over its now 5-year history, DRMD has exhibited a strong performance that would make it an investment worth considering.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
