HSBC launches S&P 500 Exchange Traded Fund

HSBC is to launch the HSBC S&P 500 ETF on 17 May 2010 with a Total Expense Ratio of just 0.15%.

The HSBC S&P 500 ETF will be listed initially on the London Stock Exchange (Bloomberg ticker: HSPX). Further registrations and cross-listings in Europe are planned over the coming months.

The latest ETF from HSBC offers investors exposure to the total return performance of the S&P 500 Index, which is widely used to track the stockmarket performance of large US companies. The index represents some 75% of the value of the US equities market and comprises 500 of the largest companies in the major industries of the US economy.

The HSBC S&P 500 ETF will aim to invest in the underlying shares of the index in the same proportions in which they are included in the index in order to replicate the total return performance of the index as closely as possible. This investment approach is referred to as ‘physical replication' and is used by HSBC for all the ETFs it has launched to date.

Farley Thomas, Head of ETFs at HSBC, said: "Until now, investors have been limited to just one ETF provider for access to the performance of the S&P 500 Index. The launch of the HSBC S&P 500 ETF brings choice for investors with a highly competitive Total Expense Ratio of just 0.15%. As with our other ETFs, our latest offering can be included in an ISA and can be traded like any other stock on the UK stockmarket but without having to pay stamp duty."

HSBC announced its entry into the European ETF market in August 2009 with the launch of the HSBC FTSE 100 ETF, providing exposure to the largest UK-listed companies. Since then, HSBC has added ETFs linked to the EURO STOXX 50, CAC 40, MSCI Japan and FTSE 250 indices.

Copies of the HSBC S&P 500 ETF Supplement will shortly be available for inspection at the Document Viewing Facility of the UK Listing Authority and will also be available on the Company's website at etfs.hsbc.com, where the Simplified Prospectus will also be available.