HSBC launches MSCI BRAZIL ETF

HSBC this week launches the HSBC MSCI BRAZIL ETF with a highly competitive total expense ratio (TER) of just 0.60%.

The launch is the first of series of emerging markets ETFs planned by HSBC and coincides with the recent launch by HSBC of Festival Brazil, an international programme of business and culturally focused activity celebrating the nation that is predicted to be the world's fifth largest economy by 2025.

The HSBC MSCI BRAZIL ETF is designed to replicate the performance of the MSCI Brazil Index, which is made up of the largest listed companies in Brazil.

As with all HSBC ETFs launched to date, the HSBC MSCI BRAZIL ETF will use ‘physical replication', in tracking its index.

Domiciled in Ireland, the ETF will initially be listed on the London Stock Exchange (LSE ticker: HMBR) with further registrations and cross-listings in Europe planned over the coming months.

Farley Thomas, Head of ETFs at HSBC, said: "Our customers expect us to offer a range of HSBC ETFs that track major developed and emerging market indices. The launch of the HSBC MSCI BRAZIL ETF is a first step towards creating an HSBC ETF range in Europe that covers the major emerging markets. Brazil is a key market for future global economic growth and its emergence as a global economic power represents a huge opportunity for investors. The country's cultural diversity also makes it an exciting focus for 2010 as it gears up to host the World Cup in 2014 and the Olympic Games in 2016."

HSBC announced its entry into the European ETF market in August 2009 with the launch of the HSBC FTSE 100 ETF. Since then, HSBC has added ETFs linked to the EURO STOXX 50, CAC 40, MSCI Japan, FTSE 250, S&P 500 and, most recently, the MSCI Europe and MSCI USA indices.

Copies of the HSBC MSCI BRAZIL 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 can also be found.