While Desjardins as an institution is familiar to many Canadians, their recognition as an ETF manufacturer is gradually developing. In this ETF Issuer article, we will look at the existing ETF product offerings of Desjardins Global Asset Management, highlighting the investment solutions that are most prominent on their shelf and how they can be of benefit to investors.

Desjardins Global Asset Management Introduction

Established in 1998, Desjardins Global Asset Management (DGAM) is one of Canada's largest asset managers with approximately $77.1 billion in assets under management, as of December 31, 2022. With in-house expertise in equity, fixed income and real assets (infrastructure, real estate), the firm seeks to provide solutions that meet the varied and changing needs of Canadian investors. Furthermore, DGAM is convinced that taking environmental, social and governance (ESG) issues into consideration when managing investments can have a positive impact on financial returns for clients and partners.

Desjardins ETFs Offering

Desjardins has grown their ETF offerings quickly, since launching their initial ETF mandates in 2017. Presently, the firm has 19 ETF offerings, which can be categorized under three banners – Responsible Investments, Alternatives, and Fixed Income.  

Responsible Investments

Desjardin’s responsible investment ETF offerings are segmented into three distinct groupings:

Low CO2 ETFs primarily invest in companies that generate lower carbon emissions than their peers in traditional indexes. These solutions will exclude companies that lag the competition in their ESG practices, such as companies that profit from selling controversial weapons or from tobacco production or manufacturing and are involved in critical controversies. The funds included in this group are:

• Desjardins RI Active Canadian Bond – Low CO2 ETF (Ticker: DRCU)
• Desjardins RI Canada – Low CO2 Index ETF (Ticker: DRMC)
• Desjardins RI USA – Low CO2 Index ETF (Ticker: DRMU)
• Desjardins RI Developed ex-USA ex-Canada Multifactor – Low CO2 ETF (Ticker: DRFD)
• Desjardins RI Emerging Markets – Low CO2 ETF (Ticker: DRFE)
• Desjardins RI Canada Multifactor – Low CO2 Index ETF (Ticker: DRFC)
• Desjardins RI USA Multifactor – Low CO2 ETF (Ticker: DRFU)
• Desjardins RI Developed ex-USA ex-Canada Low CO2 Index ETF (Ticker: DRMD)
• Desjardins RI Emerging Markets Multifactor – Low CO2 Index ETF (Ticker: DRME)

Fossil Fuel Reserve Free ETF

The Desjardins RI Global Multifactor ETF – Fossil Fuel Reserves Free (Ticker: DRFG), invests in companies with no exposure to the traditional energy sector (i.e., coil, oil, and gas), providing investors with a solution aligned with the energy infrastructure of the future.

‘Best-In-Class’ ESG ETF

The Desjardins SocieTerra American Equity ETF (Ticker: DSAE) invests in American companies that are current or emerging ESG leaders in their sector. The fund will exclude companies involved in the production and specialized transportation of fossil fuels, civilian firearms, production of electricity based on nuclear or coal-powered sources, and tobacco.

Alternatives

Desjardins' liquid alternative ETFs provide investors with exclusive access to sophisticated investment strategies. Like most alternative asset-type solutions, the value proposition behind these ETFs is their low correlation to traditional asset classes, thus minimizing investment portfolios from market volatility.

• Desjardins Alt Long/Short Equity Market Neutral ETF (Ticker: DANC)
• Desjardins Alt Long/Short Global Equity Markets ETF - CA$ Hedged (Ticker: DAMG)
• Desjardins Alt Long/Short Global Equity Markets ETF - US$ Hedged (Ticker: DAMG.U)
• Desjardins Alt Long/Short Equity Market Neutral ETF - US$ Hedged (Ticker: DANC.U)

Fixed Income

Desjardins' fixed income ETFs provide investors with broad-based exposure to varying segments of the fixed income universe. With these index ETFs, investors can integrate diversified income assets such as preferred shares, government bonds and high-quality corporate bonds into their existing portfolio.

• Desjardins Canadian Universe Bond Index ETF (Ticker: DCU)
• Desjardins Canadian Short Term Bond Index ETF (Ticker: DCS)
• Desjardins 1-5 Year Laddered Canadian Corporate Bond Index ETF (Ticker: DCC)
• Desjardins 1-5 Year Laddered Canadian Government Bond Index ETF (Ticker: DCG)
• Desjardins Canadian Preferred Share Index ETF (Ticker: DCP)

Desjardins ETFs: Fund Size & Performance

Within Desjardin’s ETF product shelf, the top five largest funds by AUM are as follows:

• Desjardins Alt Long/Short Equity Market Neutral ETF (Ticker: DANC) | Fund Size: $ 427,487,617 | Annual 2023 Return: 3.14%
• Desjardins Alt Long/Short Equity Market Neutral ETF - US$ Hedged (Ticker: DANC.U) | Fund Size: $ 320,203,451 | Annual Return 2023: 1.80%
• Desjardins RI Canada Multifactor – Low CO2 Index ETF (Ticker: DRFC) | Fund Size: $ 304,844,236 | Annual Return 2023: 16.39%
• Desjardins Canadian Universe Bond Index ETF (Ticker: DCU) | Fund Size: $ 237,245,606 | Annual Return 2023: 6.50%
• Desjardins RI USA – Low CO2 Index ETF (Ticker: DRMU) | Fund Size: $ 127,267,953 | Annual Return 2023: 23.97%

Conclusion

Though Desjardins’ current ETF product offering is progressing, the firm’s commitment to responsible investing is reflected in the breadth and intentionality of its ETF offerings. For investors who are seeking responsible investment solutions that can be the core to their portfolio or gain exposure to global companies that are leaders within the ESG space, Desjardins ETF lineup can facilitate your investment needs in a meaningful way.

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.