(DRMC) Desjardins RI Canada - Ratings and Ratios

The Desjardins RI Canada - Net-Zero Emissions Pathway ETF (DRMC) is a Canadian Equity ETF listed on the Toronto Stock Exchange, providing investors with exposure to a portfolio of Canadian equities that are aligned with a net-zero emissions pathway by 2050.

By focusing on companies that are transitioning towards a low-carbon economy, DRMC offers a unique investment opportunity for those seeking to balance financial returns with environmental, social, and governance (ESG) considerations. The funds underlying index, tracked by Morningstar Canada GR CAD, is designed to capture the performance of Canadian companies that are well-positioned to thrive in a net-zero emissions future.

Analyzing the ETFs recent price action, we observe a bullish trend, with the current price of $33.85 CAD being above its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, SMA200) of $32.66, $31.92, and $31.43, respectively. The Average True Range (ATR) of 0.40 CAD, or 1.18%, indicates moderate volatility. Given the current technical setup, we can anticipate a potential continuation of the uptrend, with the next resistance level likely to be around $35.00 CAD.

Combining technical analysis with fundamental insights, we note that the funds Assets Under Management (AUM) stand at $41.34M CAD. While this is a relatively modest size, it is not uncommon for newer or niche ETFs. Looking ahead, if the trend continues and the ETF maintains its current growth trajectory, we could see the AUM increase, potentially attracting more investors and further stabilizing the fund.

Forecasting the future performance of DRMC, we can hypothesize that if the Canadian equity market continues to favor companies with strong ESG profiles and the global transition to a low-carbon economy accelerates, DRMC is likely to remain well-positioned. With its current price near the 52-week high of $33.85 CAD and a relatively low ATR, we forecast a potential price target of $36.50 CAD in the next 6-12 months, representing a 7.8% increase from current levels. This forecast is contingent on the ETFs continued alignment with its underlying index and favorable market conditions.