National Bank launches NTHM thematic rotation ETF on TSX

National Bank launched the NBI Thematic Rotation ETF (NTHM) on the Toronto Stock Exchange. The fund tracks the Thematic Rotation Quality Momentum Screened Index (TRQMS), a proprietary benchmark that rotates quarterly into the seven highest-ranked themes drawn from a universe of 45 thematic categories.

The TRQMS benchmark evaluates 45 thematic subcategories sourced from 35 VettaFi indexes and selects the seven top-ranked themes at each quarterly rebalance. Rankings use a quality-and-momentum framework designed to identify themes with stronger fundamentals and positive price momentum. Because the index draws from an existing set of thematic indexes, new themes can be added as they emerge without creating separate ETFs.

At launch the index holds 173 securities across seven thematic categories, with each theme representing roughly 13%–15% of assets. The current theme allocations are E-Sports & Interactive Gaming (15.0%), Battery Minerals & Raw Materials (14.8%), Battery Technology & Storage (14.8%), Semiconductors (14.7%), Robotic Technologies & Computation (14.6%), Natural Resources (13.4%), and Software-as-a-Service (12.7%). Technology names account for about 40% of the index, materials for nearly 25%, and industrials and energy combined for roughly 23%.

The E-Sports & Interactive Gaming sleeve contains names such as Microsoft (3.30%), Meta Platforms (2.20%) and Tencent Holdings (2.12%). Semiconductors are represented by equipment and chip companies, with KLA Corp. listed as the largest individual holding alongside Applied Materials and Lam Research. Battery-related allocations include miners and raw material producers such as BHP Group and Freeport-McMoRan and battery technology and storage companies including Bloom Energy and Albemarle. The portfolio also features industrial automation and robotics exposure and enterprise software holdings including AppLovin, Oracle and Palantir Technologies.

National Bank Investments oversees more than C$115 billion in assets. NTHM began trading on the TSX under the NTHM ticker and joins the firm’s expanding ETF lineup.

The fund’s approach rotates exposure among the highest-ranked themes each quarter, allocating to themes selected by the index’s quality-and-momentum framework rather than maintaining static exposure to a single theme.