HSBC today launched the HSBC MSCI Emerging Markets ETF (HMEF), which comes with a highly competitive Total Expense Ratio (TER) of just 0.60%.

London-based HSBC has launched the HSBC MSCI Emerging Markets ETF (HMEF).

The HSBC MSCI Emerging Markets ETF aims to offer investors the total return performance of the MSCI Emerging Markets Index, while minimising as far as possible the tracking error between the Fund’s performance and that of the Index.

The MSCI Emerging Markets Index is a market-capitalisation weighted index designed to measure the performance of the largest companies in Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.

The fund compliments HSBC’s existing emerging market ETF range, which includes country funds tracking China, Russia, South Africa, Mexico, Indonesia, Malaysia, Taiwan and Korea, as well as regional funds covering Latin America and the BRICs.

As with all HSBC ETFs, the HSBC MSCI Emerging Markets ETF will use physical replication in tracking its index.

Farley Thomas, Head of ETFs, at HSBC, said: “MSCI Emerging Markets is an iconic index for tracking emerging markets worldwide, making this latest launch an important milestone in the expansion of HSBC’s ETF offering in Europe. As is the case for all HSBC ETFs in Europe and Asia, this fund offers extremely good value, as well as physical exposure to the total-return performance of the index net of fees.”

HSBC Global Asset Management is a leader in emerging markets, with $139billion invested in this asset class.

The HSBC MSCI Emerging Markets ETF is listed on the London Stock Exchange in sterling and US dollar trading currencies (Bloomberg ticker: HMEF LN for sterling / HMEM LN for US dollar).

Further registrations and cross-listings in Europe are planned over the coming months.  HSBC Global Banking and Markets is the Authorised Participant for all HSBC ETFs.