Desjardins Alternative ETF

Stability in a volatile market

Our Desjardins Alternative ETF gives your clients exclusive access to sophisticated investment strategies typically reserved for institutional investors.

  • Strategy: Canadian Equity market neutral
  • Objective: Stable returns in all market cycles

Our equity market neutral strategy is designed to yield absolute positive returns, regardless of market conditions. It provides rigorous risk management in both bull and bear markets:

  • Position diversification
  • Automatic stop-loss
  • Aims to mitigate losses
  • Low volatility

Direct strategy

  • No derivatives
  • Highly liquid asset class
  • Limited use of financial leverage
Desjardins Alternative ETF Mgmt. Fee1
DANC Long/Short Equity Market Neutral ETF 1.00%

Long positions, short positions

Our specialists analyze trends and quantitative and qualitative data to pair promising companies and build a high-conviction portfolio.

Generally chosen from the same industry, these paired businesses combine long and short positions to help us achieve:

  • Risk diversification in all types of investment portfolios
  • Potentially higher returns than fixed-income strategies
  • Returns that aren't correlated with the equity market
  • Mitigation of losses in bear markets

Three core underlying pairs-trading strategies are used:

  • Relative outperformance strategy based on fundamental analysis

    • Long and short positions in companies that are typically in the same industry.
    • The long position seeks to emphasize our highest-conviction fundamental ideas, while the short portion seeks to hedge against market and sector risk.
  • Reversion to the mean strategy

    • Relative evaluation.
    • Strongly correlated securities that exhibit reversion to the mean characteristics.
  • Arbitrage strategy

    • Investment opportunities related to particular situations such as recapitalization, reorganization, merger, acquisition, disposition, etc.

Each pair aims to be dollar neutral, beta neutral and sector neutral.

Our team

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

  • + 63 G$ in assets under management2
  • + 42 investment professionals
  • + 18ETFs

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

See the full list of regional sales directors

(For advisor use only)

  1. The ETF’s annual management fee is based on the ETF’s value. Management Expense Ratio (MER) is not available as these ETFs have not yet completed 12 consecutive months.
  2. As at December 31, 2018.
  3. General and specific information

    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 may all 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. Desjardins exchangetraded funds are offered by registered dealers.

    The Desjardins Alt Long/Short Equity Market Neutral ETF is an alternative mutual fund. It has the ability to invest in asset classes or use investment strategies that are not permitted for other types of mutual funds. The specific strategies that differentiate this ETF from other types of mutual funds include the use of cash borrowings for investment purposes, short sales and derivatives. Leverage amplifies gains and losses. While the strategies will be used in accordance with the ETF’s investment objectives and investment strategies, during certain market conditions they may accelerate the pace at which your investment decreases in value.

    For advisor use only

    This confidential information is intended only for representatives who are registered with a securities regulatory authority. At no time should this information be shared with investors or included in promotional materials.