Desjardins launches four fixed-income ETFs, one preferred shares ETF

By Angela McDaniels

Tacoma, Wash., April 3 – Desjardins Global Asset Management Inc. launched a new suite of exchange-traded funds that includes four fixed-income funds and one preferred share fund, according to a company news release.

Each of the ETFs has closed an initial offering of units, and those units began trading on the Toronto Stock Exchange on Monday.

Two more Desjardins ETFs, the Desjardins Developed ex-USA ex-Canada Multifactor-Controlled Volatility ETF and the Desjardins Emerging Markets Multifactor-Controlled Volatility ETF, are expected to begin trading during the second quarter of 2017.

Bond fund

The Desjardins Canadian Universe Bond Index ETF seeks to replicate the performance of a broad Canadian bond index. Currently, the fund seeks to replicate the performance of the Solactive Canadian Bond Universe TR index, net of fees and expenses.

Under normal market conditions, the fund will primarily invest in Canadian investment-grade fixed-income securities issued in the Canadian market, including government, quasi-government and corporate bonds.

The ticker symbol is “DCU.”

The management fees are 0.10%.

For each fund, the annual management fees are based on a percentage of the net asset value of the corresponding Desjardins ETF. They are calculated daily and payable monthly in arrears, plus applicable taxes.

Short bond fund

The Desjardins Canadian Short Term Bond Index ETF seeks to replicate the performance of a broad Canadian bond index with a short-term average maturity. Currently, the fund seeks to replicate the performance of the Solactive Short-Term Canadian Bond Universe TR Index, net of fees and expenses.

Under normal market conditions, the fund will primarily invest in short-term Canadian investment-grade fixed income securities issued in the Canadian market, including government, quasi-government and corporate short term bonds.

The ticker symbol is “DCS.”

The management fees are 0.15%.

Laddered corporate bond fund

The Desjardins 1-5 year Laddered Canadian Corporate Bond Index ETF seeks to replicate the performance of a diversified short-term Canadian corporate bond index, which index is divided into five groupings with staggered maturities. Currently, the fund seeks to replicate the performance of the Solactive 1-5 Year Laddered Canadian Corporate Bond TR Index, net of fees and expenses.

Under normal market conditions, the fund invests primarily in corporate bonds issued in the Canadian market with an effective term to maturity between one and six years.

The ticker symbol is “DCC.”

The management fees are 0.25%.

Laddered government bond fund

The Desjardins 1-5 year Laddered Canadian Government Bond Index ETF seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a selected short-term Canadian government bond index, which index is divided into five groupings with staggered maturities. Currently, the fund seeks to replicate the performance of the Solactive 1-5 Year Laddered Canadian Government Bond TR Index, net of fees and expenses.

Under normal market conditions, the fund will primarily invest in investment-grade government bonds issued in the Canadian market, with an effective term to maturity between one and six years.

The ticker symbol is “DCG.”

The management fees are 0.20%.

Preferred fund

The Desjardins Canadian Preferred Share Index ETF seeks to replicate the performance of a Canadian preferred shares index. Currently, the fund seeks to replicate the performance of the Solactive Canadian Rate Reset Preferred Share TR Index, net of fees and expenses.

Under normal market conditions, the fund will primarily invest in preferred shares listed on the Toronto Stock Exchange.

The ticker symbol is “DCP.”

The management fees are 0.45%.

Equity funds

The Desjardins Canada Multifactor-Controlled Volatility ETF (TSX: DFC) seeks to replicate the performance of a Canadian multifactor-controlled volatility equity index. Currently, the fund seeks to replicate the performance of the Scientific Beta Canada Multifactor-Controlled Volatility Index, net of fees and expenses. Under normal market conditions, the fund will primarily invest in Canadian equity securities.

The Desjardins USA Multifactor-Controlled Volatility ETF (TSX: DFU) seeks to replicate the performance of a U.S. multifactor-controlled volatility equity index. Currently, the fund seeks to replicate the performance of the Scientific Beta USA Multifactor-Controlled Volatility index, net of fees and expenses. Under normal market conditions, the fund will primarily invest in U.S. equity securities.

The management fees for each equity ETF are 0.50%.

Desjardins Group is a cooperative financial group based in Montreal.

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