Canada’s National Bank Investments has expanded its suite of actively managed ETFs with the launch of four sub-advised strategies on the Toronto Stock Exchange.
Annamaria Testani, Senior Vice-President, National Sales at National Bank Investments.
The listings include three equity ETFs targeting stocks from Canada, the US, and global developed markets excluding North America and one fixed income ETF focused on Canadian corporate bonds while incorporating ESG and low carbon considerations.
The equity strategies are managed by Montrusco Bolton Investments while the fixed income ETF is overseen by AlphaFixe Capital.
Annamaria Testani, Senior Vice-President, National Sales at National Bank Investments, commented: “Since 2019, NBI has entered into the ETF space with competitive financial solutions, leading most notably in sustainable investing.
“Our product line is now evolving to not only cover a broad range of asset classes but also to serve investors across a variety of market segments.”
Equities
The NBI Canadian Dividend Income ETF (NDIV CN) seeks to generate sustainable dividend income while simultaneously maximizing the potential for long-term capital growth. The fund utilizes a bottom-up, fundamentals-driven approach to select Canadian companies that pay a stable, sustainable dividend while diversifying across sectors, industries, and regions in order to reduce volatility. Firms capable of increasing their dividend as well as those proceeding to share repurchases will be favoured. Up to 30% of the portfolio may be allocated to companies listed outside of Canada. The fund comes with a management fee of 0.55%, and distributions are sent to investors monthly.
The NBI Active US Equity ETF (NUSA CN) targets long-term capital growth by targeting US large-cap, growth-oriented companies with significant barriers to entry and first-class management teams. The fund is expected to be relatively undiversified with a focus on quality-over-quantity to lower portfolio risk. It comes with a management fee of 0.55%, and distributions are sent to investors quarterly.
The NBI Active International Equity ETF (NINT CN) similarly targets long-term capital growth but focuses on stocks listed in developed markets outside of North America. The fund comes with a management fee of 0.60%, and distributions are sent to investors annually.
Fixed income
The NBI Sustainable Canadian Corporate Bond ETF (NSCC CN) seeks to balance current income with the potential for capital growth. The strategy emphasizes bonds issued by Canadian corporations with carbon intensity profiles substantially lower than the market average. The fund will also consider firms’ ESG performance and contribution to UN sustainable development goals when conducting security selection. Up to 30% of the portfolio may be allocated to non-Canadian corporate issuers and just 10% to high-yield issues. The fund comes with a management fee of 0.55%, and distributions are sent to investors monthly.