HSBC Global Asset Management this morning announced the launch of the HSBC Emerging Market Sustainable Equity UCITS ETF, with the first day of trading on the London Stock Exchange (LSE) today.
Designed to offer a cost-efficient solution to investing in emerging markets equities, the new ETF tracks the customised FTSE Emerging ESG Low Carbon Emissions Select Index, which targets a 20% ESG improvement, a 50% carbon emissions reduction and a 50% fossil fuels reserves reduction.
HSBC said the fund aims to replicate the performance of the index while minimising the tracking error.
With emerging markets being a key part of our DNA, we’re pleased to offer clients a cost-effective solution to access companies that are transitioning towards a lower carbon economy in this space."
The HSBC Emerging Market Sustainable Equity UCITS ETF is the latest addition to the firm's sustainable equity ETF range and follows last week's launch of the HSBC Asia Pacific ex Japan Sustainable Equity UCITS ETF, the first sustainable UCITS ETF in the market providing exposure to an Asia Pacific ex-Japan benchmark. The other funds in the range include:
- HSBC Europe Sustainable Equity UCITS ETF
- HSBC Japan Sustainable Equity UCITS ETF
- HSBC USA Sustainable Equity UCITS ETF
- HSBC Developed World Sustainable Equity UCITS ETF
Olga de Tapia, global head of ETF sales at HSBC Global Asset Management, commented: "With emerging markets being a key part of our DNA, we're pleased to offer clients a cost-effective solution to access companies that are transitioning towards a lower carbon economy in this space."
HSBC is providing custody and fund administration services to the new ETFs as well as acting as authorised participant and market-maker.
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