HSBC Asset Management (HSBC AM) has today launched the HSBC S&P 500 Equal Weight Equity Index Fund, the first UK-domiciled index fund to track the S&P 500 Equal Weight Thermal Coal Screened Index by investing in the underlying securities – physically replicating the benchmark.
Through incorporating the equal weight index methodology, the fund offers investors diversification in their US equity exposure and mitigates concentration risks associated with US mega-cap stocks.
Available to both wholesale and institutional investors, the HSBC S&P 500 Equal Weight Equity Index Fund offers equally weighted exposure to the constituents of the Index while also applying exclusions in line with HSBC AM’s thermal coal policy.
The launch follows growing demand for the investment solution, with equal weight ETFs recording strong inflows in recent months[1].
Bhavick Patel, Head of UK ETF & Indexing Sales at HSBC Asset Management, said: “We are very pleased to offer investors the first unlisted UK-domiciled index fund (OEIC) tracking the S&P 500 Equal Weight Thermal Coal Screened Index providing large cap US equity exposure to investors in an equal weight format.
“Index concentration in US large cap equity benchmarks is top of mind for investors. The S&P 500 Equal Weight Equity Index Fund offers timely, diversified access to US equities at a moment when investors are looking for alternatives to market cap weighted benchmarks to mitigate this risk.”
HSBC AM’s Index fund assets have more than doubled from USD 27 billion at the end of 2019 to over USD 63 billion as of the end of March 2024, with UK-domiciled assets similarly increasing more than two-fold to pass USD 43 billion over the same period.
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OEIC Trading Table:
| Income C | Accumulation C | Income S | Accumulation S | |
| ISIN | GB00BSZ8FB09 | GB00BSZ8GD97 | GB00BSZ8GF12 | GB00BSZ8GG29 |
| Sedol | BSZ8FB0 | BSZ8GD9 | BSZ8GF1 | BSZ8GG2 |
| Indicative OCF | 0.17% | 0.17% | 0.10% | 0.10% |
| Min Investment (GBP) | 1,000,000 | 1,000,000 | 10,000,000 | 10,000,000 |
