Desjardins Adjusts Risk Ratings on Four ETFs Amid Volatility Review

Event summary

  • Desjardins Investment Inc. lowered the risk ratings of four ETFs effective March 30, 2026, following a standardized volatility assessment.
  • The changes include DMID (Medium to High → Medium), DRFD (Medium → Low to Medium), DRFE (Medium to High → Medium), and DANC.U (Low → Low to Medium).
  • The adjustments were made under Regulation 81-102 Investment Funds, based on 10-year historical volatility or reference index data.
  • Investment objectives and strategies for the ETFs remain unchanged.

The big picture

Desjardins' risk rating adjustments reflect a broader industry trend toward dynamic portfolio risk management amid market uncertainty. As one of Canada's largest ETF managers with $55.8 billion in AUM, the move underscores the importance of standardized volatility assessments in maintaining investor trust. The changes may also signal heightened scrutiny of mid-cap and emerging market exposures in the current economic climate.

What we're watching

Volatility Trends
How future volatility shifts in mid-cap equities and emerging markets will impact these ETFs' risk profiles.
Regulatory Alignment
Whether Desjardins can maintain compliance with evolving risk classification standards under Regulation 81-102.
Investor Behavior
The pace at which investors reallocate assets in response to the revised risk ratings.