HSBC Asset Management launches active ETF range  

HSBC Asset Management (HSBC AM) has entered the active ETF market with the launch of five new funds. 

The HSBC PLUS Active ETF range will provide investors with country and regional exposures through ‘core’ and ‘income’ versions, aiming to blend the benefits of the ETF wrapper with the potential to outperform.  

The funds utilise a quantitative driven investment approach with proprietary factors forming the basis of a stock selection process which leverages HSBC AM’s Quantitative Equity capabilities.  

The funds that comprise the HSBC PLUS Active ETF range are:

• HSBC PLUS USA Equity Quant Active UCITS ETF 
• HSBC PLUS World Equity Quant Active UCITS ETF 
• HSBC PLUS Emerging Markets Equity Quant Active UCITS ETF 
• HSBC PLUS World Equity Income Quant Active UCITS ETF 
• HSBC PLUS Emerging Markets Equity Income Quant Active UCITS ETF 

The overall investment approach aims to target specific drivers of equity returns and select stocks based on their ‘style’ characteristics, including stocks which show the greatest association with value, quality, industry momentum, low risk and size. The stock selection process relies on HSBC AM’s well-defined criteria which has been developed by the business for 20 years.  

The core range, which includes the HSBC PLUS USA Equity Quant Active UCITS ETF, HSBC PLUS World Equity Quant Active UCITS ETF and HSBC PLUS Emerging Markets Equity Quant Active UCITS ETF funds, aims to maximise exposure to the highest ranked stocks based on their factor characteristics whilst minimising the portfolio’s overall risk. 

The income range consists of the HSBC PLUS World Equity Income Quant Active UCITS ETF and HSBC PLUS Emerging Markets Equity Income Quant Active UCITS ETF funds which aim to identify equity securities with attractive income and quality characteristics and that provide additional income compared to a market-cap index, while preserving the capital growth. 

The funds will be registered and available to retail, wholesale and institutional investors in Austria, Germany, Spain, France, Italy, Luxembourg, Sweden and the UK. They will also be listed on London Stock Exchange, Borsa Italiana and Xetra. 

Olga de Tapia, Global Head of ETF and Indexing Sales at HSBC AM, said:  

“The active ETF market is enjoying strong growth, and we are pleased to introduce our suite of funds in this space as part of our efforts to bring innovative and relevant investment tools to investors.  

“Our HSBC PLUS Active ETF range combines quantitative active management with the efficiency of an ETF structure and aims to provide investors with additional alpha beyond core passive exposures in a cost-efficient way and ensuring resilience across diverse market cycles and economic regimes. 

“As investors seek more sophisticated strategies and more efficient ways to capture risk premia, as well as enhance equity returns in today’s complex investment environment, we believe factor strategies can be used to complement existing investments and help with diversification by sitting in a space between traditional active and passive investments.” 

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.  Funds are denominated in currencies other than GBP. Returns and costs may vary with fluctuations in exchange rates.