HSBC Factor & Capitalisation ETF Range
Building indices using fundamental criteria
Our expanded product range includes a factor and capitalisation offering with a sustainable focus. Complementing our multi-factor product, we have launched individual factor products to be used as an alternative to standard market capitalisation indices, enabling investors to build non-standard risk exposures into their portfolios.
Factors represent intuitive fundamental investment concepts which can be used to explain the risk and return of an asset. Explanatory power is crucial when designing factor screening methodologies as it helps to attribute returns to specific fundamental factor characteristics.
Defining Seven Factor Concepts
Source: MSCI August 2022. Representative overview of the investment process, which may differ by product, client mandate or market conditions.
Meaningful ESG screening whilst maintaining factor integrity
Our factor products are carefully designed to combine Factor and ESG exposure simultaneously to minimize the trade off between the two.
Each factor index has a carefully designed ESG screening process embedded within it to ensure an intuitive, effective ESG screening process is employed which maintains the factor characteristics of the index to the highest degree possible.
Source: MSCI August 2022. Representative overview of the investment process, which may differ by product, client mandate or market conditions.
Access the opportunity
To equip investors looking for alternative investment solutions, we have carefully crafted the first of a growing toolbox of Factor ETFs with ESG considerations
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HSBC MSCI World Value ESG UCITS ETF |
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HSBC MSCI World Small Cap ESG UCITS ETF |
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HSBC MSCI Emerging Markets Value ESG UCITS ETF |
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HSBC MSCI Emerging Markets Small Cap ESG UCITS ETF |
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Biodiversity & nature
Our objectives and approach -
Key risks
The value of an investment in the portfolios and any income from them can go down as well as up and as with any investment you may not receive back the amount originally invested.
- Counterparty Risk: The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations
- Derivatives Risk: Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset
- Exchange Rate Risk: Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly
- Index Tracking Risk: To the extent that the Fund seeks to replicate index performance by holding individual securities, there is no guarantee that its composition or performance will exactly match that of the target index at any given time (“tracking error”)
- Investment Leverage Risk: Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source
- Liquidity Risk: Liquidity Risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising existing or remaining investors
- Operational Risk: Operational risks may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things
Any views expressed were held at the time of preparation and are subject to change without notice. Any forecast, projection or target where provided is indicative only and not guaranteed in any way. HSBC Global Asset Management (UK) Limited accepts no liability for any failure to meet such forecast, projection or target.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Supplement to the Prospectus contains a more detailed description of the limited relationship MSCI has with HSBC ETFs plc and any related funds.
Detailed information for article 8 and 9 sustainable investment products, as categorised under the Sustainable Finance Disclosure Regulation (SFDR), including; description of the environmental or social characteristics or the sustainable investment objective; methodologies used to assess, measure and monitor the environmental or social characteristics and the impact of the selected sustainable investments and; objectives and benchmark information, can be found at: https://www.assetmanagement.hsbc.co.uk/en/intermediary/investment-expertise/sustainable-investments/sustainable-investment-product-offering.
Index-based Investing - The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Stock market investments should be viewed as a medium to long term investment and should be held for at least five years. Any performance information shown refers to the past and should not be seen as an indication of future returns.