NBI's New Funds: A Strategic Play in a Shifting Investment Landscape

MONTREAL, QC – June 23, 2026 – National Bank Investments Inc. (NBI) today announced a significant expansion of its product lineup, launching five new exchange-traded funds (ETFs) and a new mutual fund on the Toronto Stock Exchange. While new fund launches are a regular occurrence, this move by the investment arm of one of Canada's largest banks is a clear and calculated response to powerful undercurrents reshaping modern investment: the demand for simplicity, the allure of thematic megatrends, and the mainstreaming of sustainable finance.

"The launch of these new ETFs and mutual fund strategies... marks an exciting step forward in our commitment to advisor and investor needs," said Martin Felton, Vice-President of National Sales at National Bank Investments. He pointed to the new offerings as solutions that "combine innovation, simplicity, and practical portfolio building blocks for every investor."

Beyond the standard corporate messaging, this launch serves as a barometer for where the smart money is flowing and how major financial institutions are retooling their strategies to remain competitive and relevant.

Responding to Evolving Investor Appetites

The timing and composition of NBI's launch are deeply rooted in current market dynamics. The Canadian ETF industry has been on a remarkable growth trajectory, with assets under management swelling to a record US$720 billion by May 2026 after 47 consecutive months of net inflows. This isn't just about a preference for a different product wrapper; it's about a fundamental shift in investor behavior.

NBI's new offerings—four diversified ETF Portfolios, a thematic rotation ETF, and a sustainable equity fund—directly target the three most powerful trends driving this growth. The explosive rise of active ETFs, which now account for 70% of new launches, underscores a market that is no longer satisfied with purely passive strategies. Investors want the low cost and transparency of an ETF but are increasingly seeking the potential for outperformance that active management can provide.

Simultaneously, sustainable investing has firmly moved from the niche to the mainstream. With the Canadian ESG market projected to surpass USD 5.5 billion by 2030 and 96% of financial advisors reporting increased client focus on ESG, a robust sustainable offering is no longer optional; it's a core requirement. NBI's new sustainable fund is a direct answer to this demand, which is driven not just by values but by a growing understanding of ESG factors as crucial components of risk mitigation and long-term return enhancement.

A Deeper Dive into Thematic and Sustainable Strategies

The two most specialized products in the new suite, the NBI Thematic Rotation ETF (NTHM) and the NBI Sustainable Systematic World Equity Fund, offer a glimpse into the increasing sophistication of retail and advisor-led investment strategies.

The NBI Thematic Rotation ETF is engineered to solve a key problem with investing in megatrends: timing. While themes like artificial intelligence, battery technology, and cybersecurity are compelling, their market leadership can be fleeting. Static exposure to a single theme can lead to significant underperformance if the narrative shifts. NBI's solution is a dynamic one. The NTHM ETF tracks a proprietary index that systematically rotates exposure among global equity themes based on a combination of "quality and momentum characteristics." At launch, its portfolio is spread across themes like E-Sports, Battery Minerals, Semiconductors, and Software-as-a-Service, with a heavy weighting towards technology and materials. This strategy aims to provide exposure to long-term growth trends while actively managing the risk of any single theme falling out of favor.

Similarly, the NBI Sustainable Systematic World Equity Fund signals an evolution in ESG investing. The term "systematic" implies a move beyond simple exclusionary screens (e.g., avoiding tobacco or weapons) toward a more data-driven, quantitative approach. The fund aims to provide long-term growth by investing in a global portfolio of companies selected using quantitative models while adhering to a sustainable framework. As a signatory of the UN-supported Principles for Responsible Investment (PRI), NBI is aligning this product with institutional-grade standards, where ESG integration is a rules-based process designed to identify resilient companies and uncover hidden risks and opportunities.

Simplifying Portfolios in a Complex Market

While the thematic and sustainable funds cater to specific investor goals, the core of the new launch may be the four NBI ETF Portfolios: Conservative, Balanced, Growth, and Equity. These all-in-one solutions are designed as foundational "building blocks" for portfolio construction, addressing a widespread demand for simplicity and convenience.

With a management fee of 0.35%, these portfolios are competitively priced, though not the absolute cheapest on the market when compared to the ultra-low-cost passive offerings from giants like Vanguard or BMO. However, this fee level hints at NBI's strategy. These are not simple index-tracking funds. The portfolios invest in a diverse mix of other ETFs and mutual funds, likely leveraging NBI's "open architecture" strategy to include a blend of both passive and active underlying strategies from various managers. This positions the portfolios as a value-added solution, offering curated diversification and professional oversight for a fee that is still significantly lower than traditional balanced mutual funds.

For financial advisors and self-directed investors alike, these products offer a streamlined way to achieve a diversified allocation matching a specific risk profile, reducing the complexity of managing dozens of individual holdings.

The Competitive Landscape and Strategic Positioning

This multi-faceted product launch is a strategic maneuver to solidify NBI's position in Canada's fiercely competitive wealth management landscape. Rather than attempting to out-compete on cost alone, NBI is reinforcing its role as an innovator and a key partner for advisors. Its open architecture strategy allows it to act as a curator, selecting and packaging what it deems to be best-in-class solutions—whether developed in-house or by external partners—to meet the sophisticated needs of today's investors.

The new suite demonstrates a deep understanding of the market's trajectory, providing accessible tools for diversification, sophisticated vehicles for tapping into global megatrends, and credible options for values-based investing. By addressing these distinct but overlapping needs, National Bank Investments is not just expanding its product shelf; it is building a more resilient and responsive system designed to navigate the complexities of the modern global economy.