Responsible Investment ETFs

Adapting to change is in our DNA.Net-zero ETFs

ETFs with absolute ambitions for your clients

The world now has a clear target in the fight against climate change: net-zero emissions by 2050.1 But markets are dragging their feet.

Our low CO2, responsible investment ETFs (exchange-traded funds) are following Desjardins Group's lead and stepping up efforts to combat climate change. Through their gradual decarbonization, the portfolios aim to achieve the net-zero objective. An absolute trajectory by 2050.

 

Discover the net-zero emissions ETFs approach within our RI product suite!

Net-zero emissions pathway ETFs seek to gradually chip away at financed emissions compared to 2020 levels, supporting the probability that annual decreases achieve net-zero emissions by 2050. This strategy is consistent with industry best practices and doesn't compromise on performance. The ETFs are designed to:

Benefit from growth across all economic sectors. Reduce exposure to the worst emitters. Maintain sound industry and geographic diversification. Enhance risk control with active quantitative management. Encourage companies to cut emissions.

Emissions reductions are achieved at the level of each ETF's total financed emissions, regardless of the emissions reduction policies of the companies held within it. However, to reach the net zero financed emissions target, exposure to the largest emitters will need to be cut back if they do not take concrete action to reduce their own emissions.

What are financed emissions?

Financed emissions are greenhouse gas emissions created by the companies in which a fund is invested. Investments into the fund are essentially financing these emissions.

A fund's financed emissions are equivalent to its share of the total emissions of the companies in which it is invested, based on the value of the securities it holds.

The net-zero emissions pathway ETFs exclude companies that:

  • Apply ESG practices deemed inadequate
  • Profit from controversial weapons
  • Profit from the production or manufacturing of tobacco or thermal coal

Note: The energy sector is not excluded from these ETFs.

ETF name Management style Ticker Management fees2
Desjardins RI Active Canadian Bond – Net-Zero Emissions Pathway ETF Active DRCU 0.35%
Desjardins RI Canada – Net-Zero Emissions Pathway ETF Active systematic DRMC 0.15%
Desjardins RI USA – Net-Zero Emissions Pathway ETF Active systematic DRMU 0.20%
Desjardins RI Developed ex-USA ex-Canada – Net-Zero Emissions Pathway ETF Active systematic DRMD 0.25%
Desjardins RI Emerging Markets – Net-Zero Emissions Pathway ETF Active systematic DRME 0.35%
Desjardins RI Canada Multifactor – Net-Zero Emissions Pathway ETF Active systematic multifactor DRFC 0.40% (reduced!)
Desjardins RI USA Multifactor – Net-Zero Emissions Pathway ETF Active systematic multifactor DRFU 0.40% (reduced!)
Desjardins RI Developed ex-USA ex-Canada Multifactor – Net-Zero Emissions Pathway ETF Active multifactor DRFD 0.45% (reduced!)
Desjardins RI Emerging Markets Multifactor – Net-Zero Emissions Pathway ETF Active multifactor DRFE 0.65%
ETF name Management style Ticker Management fees
Desjardins Sustainable American Equity ETF Active DSAE 0.80%

Desjardins Sustainable ETF

The Desjardins Sustainable American Equity ETF invests in American companies that are current or emerging ESG leaders in their sector.

Excludes companies involved in:

  • Production and specialized transportation of fossil fuels
  • Civilian firearms
  • Production of electricity based on nuclear or coal-powered sources
  • Tobacco

This actively managed ETF uses a similar strategy to the one behind the Desjardins Sustainable American Equity Fund.

ETF name Management style Ticker Management fees2
Desjardins RI Global Multifactor – Fossil Fuel Reserves Free ETF Multifactor DRFG 0.50% (reduced!)

An ETF free from fossil fuel reserves

The Desjardins RI Global Multifactor – Fossil Fuel Reserves Free ETF is an opportunity to invest in companies with no exposure to the traditional energy sector (coal, oil and gas) to reduce the risks associated with the energy transition.

How? By excluding companies that:

  • Own fossil fuel reserves
  • Are categorized in the fossil fuel sector
  • Earn a significant share of revenues from fossil fuels
  • Produce a significant share of electricity from thermal coal

It also excludes companies that:

  • Lag behind the competition in their ESG practices
  • Profit from selling controversial weapons or from tobacco production or manufacturing
  • Are involved in critical controversies

Our team3

Desjardins Global Asset Management Inc. (DGAM) is one of the largest portfolio managers in Canada.

  • $77B+ in assets under management
  •  84 investment professionals
  •  20+ETFs

Want to speak to a regional sales director about our investment solutions?

  1. 1. "More than 70 countries, including the biggest polluters – China, the United States, and the European Union – have set a net-zero target, covering about 76% of global emissions. More than 3,000 businesses and financial institutions are working with the Science-Based Targets Initiative to reduce their emissions in line with climate science." Source: https://www.un.org/en/climatechange/net-zero-coalition
  2. 2. The management fees are calculated based on a percentage per annum of the average daily net asset value of the ETF. As at September 15, 2023.
  3. 3. As at December 31, 2022.

The Desjardins Exchange Traded Funds are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns. Commissions, management fees and expenses all may be associated with an investment in exchange traded funds. Please read the prospectus before investing. Desjardins Global Asset Management Inc. is the manager and portfolio manager of the Desjardins Exchange Traded Funds. The Desjardins Exchange Traded Funds are offered by registered dealers.

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