DESJARDINS RI USA MULTIFACTOR NET-ZERO EMISSIONS PATHWAY ETF (CAD) DRFU.CA

The Desjardins RI USA Multifactor Net-Zero Emissions Pathway ETF is a Canadian-domiciled exchange-traded fund managed by Desjardins Global Asset Management. It seeks long-term capital appreciation by investing mainly in U.S. large- and mid-cap equities, using a quantitative multifactor strategy that combines factors such as valuation, quality, momentum, and low volatility.

The fund is part of Desjardins' Responsible Investment Net-Zero Emissions Pathway suite. Its mandate includes gradually reducing financed greenhouse gas emissions (Scope 1, 2 and, where data allow, Scope 3) with the goal of halving emissions by around 2030 (relative to a 2020 baseline) and achieving net-zero emissions by about 2050.

Equity issuers in its portfolio must meet predetermined ESG standards, and the fund implements exclusions for companies involved in controversial weapons, tobacco, and thermal coal, among others. Construction of the portfolio is active and does not track a traditional index.

The manager controls active risk by managing exposures at the sector, geographic, and individual security levels. Issuers are selected directly or through indirect investment to align with both multifactor objectives and the net-zero emissions trajectory.