Desjardins Global has launched seven ETFs on the Toronto Stock Exchange, becoming the latest asset manager to make a foray into the ETF provider space.
To mark the launch of the ETFs, Desjardins Global was invited to open the Toronto Stock Exchange on Monday 3 April 2017.
The initial suite of Desjardins ETFs include four fixed income funds, one preferred share fund and two multifactor-controlled volatility funds that take into account the analysis of key investment factors.
“The launch of the Desjardins ETFs represents the next step in the evolution of our offering of global investment solutions,” said Nicolas Richard, Chief Executive Officer of Desjardins Global.
Richard continued by stating that the launch of three categories of ETF allows Desjardins to increasingly diversify its offerings and to meet the evolving needs of its clients.
Fixed income ETFs
The Desjardins Canadian Universe Bond Index ETF (DCU) tracks the Solactive Canadian Bond Universe TR Index, a representation of the broad Canadian investment grade bond market including government, quasi-government and corporate securities. The fund has management fees of 0.10%.
The Desjardins Canadian Short Term Bond Index ETF (DCS) tracks the Solactive Short-Term Canadian Bond Universe TR Index, which is similar to DCU’s underlying index but targets bonds with short-term average maturities. The fund has management fees of 0.15%.
The Desjardins 1-5 year Laddered Canadian Corporate Bond Index ETF (DCC) track the Solactive 1-5 Year Laddered Canadian Corporate Bond TR Index. The index is divided into five groupings of short-term Canadian corporate bonds with staggered maturities. The fund has management fees of 0.25%.
The Desjardins 1-5 year Laddered Canadian Government Bond Index ETF (DCG) tracks the Solactive 1-5 Year Laddered Canadian Government Bond TR Index which is also divided into five groupings with staggered short-term maturities but is composed of investment-grade government bonds issued in the Canadian market. The fund has management fees of 0.20%.
Preferred Share ETF
The Desjardins Canadian Preferred Share Index ETF (DCP) tracks the Solactive Canadian Rate Reset Preferred Share TR Index which is composed of preferred shares listed on the Toronto Stock Exchange. The fund has management fees of 0.45%.
Multifactor ETFs
The Desjardins Canada Multifactor-Controlled Volatility ETF (DFC) tracks the Scientific Beta Canada Multifactor-Controlled Volatility Index, representing the performance of Canadian equity securities which have been weighted to amplify exposure to a selection of equity market risk factors – value, momentum, size and low volatility. The fund has management fees of 0.50%.
The Desjardins USA Multifactor-Controlled Volatility ETF (DFU) tracks the Scientific Beta USA Multifactor-Controlled Volatility Index, representing the performance of US equity securities which have employed a similar weighting methodology to DFC’s underlying index. The fund has management fees of 0.50%.
Two more Desjardins multifactor ETFs, the Desjardins Developed ex-USA ex-Canada Multifactor-Controlled Volatility ETF and Desjardins Emerging Markets Multifactor-Controlled Volatility ETF, are also anticipated to commence trading by the end of Q2 2017.