HSBC launches HSBC MSCI World ETF
HSBC has launched the HSBC MSCI World ETF, which carries a very competitive Total Expense Ratio (TER) of just 0.35 %.
The HSBC MSCI World ETF is listed on the London Stock Exchange in sterling and US dollar trading currencies (Bloomberg ticker: HMWO LN for sterling / HMWD LN for US dollar). Further registrations and cross-listings in Europe are planned over the coming months.
This latest ETF from HSBC offers investors exposure to the total return performance of the MSCI World Index, which is designed to measure the equity market performance of developed markets. The HSBC MSCI World ETF will use ‘optimised physical replication' whereby it will select and invest in the largest and most liquid stocks in the index.
The MSCI World Index consists of over 1,600 companies spread across 24 developed markets including Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.
Farley Thomas, Head of ETFs at HSBC, says: "MSCI World is one of those iconic indices for tracking developed markets worldwide. The launch of the HSBC MSCI World ETF is therefore an important milestone in the development of our range of HSBC ETFs in Europe. As with all our ETFs, with this launch we are offering an extremely good value option for high quality exposure to the total-return performance of the index, less costs."
The TER of the HSBC MSCI World ETF at 0.35% is one-fifth of the average TER of actively managed international equity funds in Europe (1.76%) and less than half the average TER of passively managed international equity funds in Europe (0.76%).
The HSBC MSCI World ETF marks the 13th ETF launch from HSBC in Europe with the group planning to progressively grow its range to offer a complete set of ETFs relevant for the asset allocation needs of the majority of investors.
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, MSCI Europe, MSCI USA, MSCI Brazil, MSCI Pacific ex Japan, MSCI EM Far East and MSCI Turkey indices.
HSBC Global Banking and Markets is the Authorised Participant for all HSBC ETFs.
Copies of the HSBC MSCI World 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.