The two new ETFs offer investors additional options for international ESG exposure
Following the launch of its alternative long/short equity market ETF in January, Desjardins Global Asset Management (DGAM) has announced two new ETFs on the TSX to expand its shelf of responsible investment products.
The Desjardins RI Emerging Markets Multifactor Low CO2 ETF, trading under the ticker symbol DRFE, seeks to replicate the performance of the Scientific Beta Desjardins Emerging RI Low Carbon Multifactor Index, net of fees and expenses.
Investing primarily in large- and mid-cap companies from the Scientific Beta Emerging Markets Universe, it aims to create a portfolio with a weighted-average carbon intensity that’s significantly reduced compared to the cap-weighted Index of the Scientific Beta Emerging Markets Universe. All constituent issuers within the fund portfolio will also be required to meet certain pre-determined ESG standards.
Meanwhile, the Desjardins RI Global Multifactor - Fossil Fuel Reserves Free ETF trades under the ticker symbol DRFG. It aims to replicate the performance of the Scientific Beta Desjardins Global RI Fossil Fuel Reserves Free Multifactor Index, net of fees and expenses.
The fund will be invested primarily in large- and mid-cap companies within the Scientific Beta Global Markets Universe. The fund portfolio will aim to achieve a significant reduction in carbon asset stranding risk exposure relative to the cap-weighted index of the Scientific Beta Global Markets Universe, all while insuring that its constituents adhere to pre-determined ESG standards.
Based on the simplified ETF prospectus, cash distributions of income, if any, will be paid to unitholders of DRFE at least semi-annually, while any available distributions for DRFG will be paid at least quarterly. The management fees for DRFE and DRFG are 0.65% and 0.6% of NAV, respectively.
The two funds complement six other responsible-investing ETFs launched by Desjardins late last year, which include:
- Desjardins RI Canada Multifactor - Low CO2 ETF (DRFC);
- Desjardins RI USA Multifactor - Low CO2 ETF (DRFU);
- Desjardins RI Developed ex-USA ex-Canada Multifactor - Low CO2 ETF (DRFD);
- Desjardins RI Canada - Low CO2 Index ETF (DRMC);
- Desjardins RI USA - Low CO2 Index ETF (DRMU); and
- Desjardins RI Active Canadian Bond - Low CO2 ETF (DRCU
“We are pleased to offer our investors attractive growth potential while supporting the transition to a greener economy", said Nicolas Richard, CEO of DGAM.