HSBC active ETFs cross-listed onto Xetra

May 17th, 2018 | By | Category: Latest news

HSBC Global Asset Management has cross-listed two of its actively managed ETFs onto Xetra and Börse Frankfurt. The funds were originally listed on London Stock Exchange (LSE) in 2014.

Amundi, one of Europe’s leading providers of exchange-traded funds, has a launched a new ETF designed to offer broad access to European equities but without exposure to financial companies. Listed on the NYSE Euronext Paris, the Amundi ETF MSCI Europe Ex Financials (EUXF) tracks the MSCI Europe Ex Financials Index, an index which specifically excludes banks, insurers, real estate and diversified financial companies.

HSBC active ETFs cross-listed onto Xetra

The HSBC Multi-Factor Worldwide Equity UCITS ETF (H41J GR) comprises companies assessed and selected based on the factors of value, quality, momentum, low risk and size. The portfolio’s risk characteristics are minimised through a series of constraints on sector and stock weights.

The fund has performed broadly in line with its benchmark since inception, returning 6.5% per annum versus its benchmark at 6.6%. Its benchmark was the HSBC Worldwide Index until October 2017; since then it has been the MSCI All-Country World Index.

Information technology (20.6%), financials (20.1%) and consumer discretionary (12.5%) are the fund’s three largest sector exposures. Its exposure is heavily weighted towards the US at 49.6%, followed by Japan (9.0%) and Germany (4.2%).

It is a distributing fund which issues dividends quarterly. Its dividend yield is currently 1.8% (as at 31 March 2018). The fund has assets under management of $247m, and a total expense ratio (TER) of 0.25%.

H41J trades in euros on Xetra, but the fund also trades in pounds sterling (HWWA LN) and US dollars (HWWD LN) on LSE.

The HSBC Economic Scale Worldwide Equity UCITS ETF (H41I GR) comprises corporations selected on the basis of their economic scale. A company’s economic scale is measured by its contribution to gross national product, which is also referred to as “value added”.

Value added is the difference between a company’s outputs and inputs which is available for disbursement to equity holders (dividends), bond holders (interest income), government (taxes) and employees (salaries). The manager will construct a diversified portfolio of stocks with high economic scale, typically consisting of approximately 2,500 stocks.

The fund was launched in June 2014 and has since underperformed its benchmark, returning 6.1% per annum versus its benchmark which has returned 6.6%. Its benchmark was the HSBC Economic Scale Worldwide Index until October 2017 when it also changed to the MSCI All-Country World Index.

Financials (19.7%), industrials (13.8%) and consumer discretionary (12.4%) are the fund’s three largest sector exposures. Its exposure is also weighted towards the US at 31.1%, followed by Japan (9.1%) and China (8.9%).

It is a distributing fund which issues dividends quarterly. Its dividend yield is currently 2.1% (as at 31 March 2018).

The underlying currency of both funds is US dollar but they trade on Xetra in euros. The fund has assets under management of $433m and a TER of 0.25%.   

H41I trades in euros on Xetra, but the fund also trades in pounds sterling (HEWA LN) and US dollars (HEWD LN) on LSE.

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