(DMEU) Desjardins American Equity - Ratings and Ratios

The Desjardins American Equity Index ETF (TO:DMEU) is an exchange-traded fund designed to provide investors with exposure to the US equity market, denominated in Canadian dollars. It tracks the Morningstar US Market TR CAD Index, offering a diversified portfolio of US stocks. This ETF is suitable for Canadian investors seeking to enhance their portfolios with US market growth potential while mitigating currency risk through CAD denomination.

From a technical standpoint, DMEU is currently trading at $22.41, with a 20-day average volume of 20,300 shares. The short-term trend, as indicated by the 20-day simple moving average (SMA) of $21.51, suggests a recent uptrend. The 50-day SMA of $22.87 and the 200-day SMA of $23.15 indicate a longer-term perspective, with the ETF trading near its historical averages. The Average True Range (ATR) of 0.56 reflects relatively low volatility, indicating stable price movements.

Fundamentally, DMEU manages assets under management (AUM) of $1.41 billion CAD, demonstrating significant investor interest and liquidity. This substantial AUM underscores the ETFs appeal as a core holding for US equity exposure within Canadian investment portfolios.

Looking ahead over the next three months, DMEU is expected to experience a period of consolidation. The ETF may face short-term weakness as it approaches the 50-day SMA resistance level of $22.87. However, support from the 200-day SMA at $23.15 is anticipated to act as a floor, potentially leading to a rebound. The low ATR of 0.56 suggests that price fluctuations will remain moderate, with the ETF likely trading within a narrow range near its current levels. Investors may expect DMEU to remain stable, with limited downside risk, making it a relatively secure choice for exposure to the US market.