HSBC launches MSCI South Africa ETF in Europe
HSBC has added to its range of ETFs with the launch of the HSBC MSCI South Africa ETF which comes with a market leading Total Expense Ratio (TER) of just 0.60%.
The HSBC MSCI South Africa ETF aims to mirror the performance of the MSCI South Africa Index, which is designed to offer exposure to the leading companies listed on the index.
Farley Thomas, Head of ETFs at HSBC, said: "South Africa is one of the bigger economies within the emerging markets universe. It has an abundant supply of natural resources alongside well-developed financial, communications, energy, and transport sectors. The HSBC MSCI South Africa ETF aims to provide investors with high quality and good value access to this potentially high growth story."
The HSBC MSCI South Africa ETF is listed on the London Stock Exchange in sterling and US dollar trading currencies (Bloomberg ticker: HZAR LN for sterling / HZAD LN for US dollar). Further registrations and cross-listings in Europe are planned.
As with all HSBC ETFs launched to date the HSBC MSCI South Africa ETF will use ‘physical replication' in tracking its index. The fund will aim to invest in securities in generally the same proportions as in the index however may use financial derivative instruments to replicate the performance of selected securities within the index.
The HSBC MSCI South Africa ETF marks the 16th ETF launch from HSBC in Europe. The first, the HSBC FTSE 100 ETF was introduced in August 2009. Since then, HSBC has added ETFs linked to a number of indices including, the EURO STOXX 50, MSCI Japan, FTSE 250, S&P 500, MSCI Europe, MSCI USA, MSCI Brazil, MSCI Pacific ex Japan, MSCI EM Far East, MSCI Turkey, MSCI World, S&P BRIC 40 and MSCI China.
Globally, HSBC has USD 7.5 billion in ETF assets under management and is a leading ETF product provider in Asia ex Japan with 13% market share.
As with all investments, the value and any income from ETFs can go down as well as up, and investors may not get back the amount invested.
HSBC Global Banking and Markets is the Authorised Participant for all HSBC ETFs.
Copies of the HSBC MSCI South Africa 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.