HSBC AM expands Paris-aligned range with emerging markets and Asia-Pacific ex-Japan ETFs

HSBC Asset Management has launched two more Paris-aligned ETFs targeting emerging markets and Asia-Pacific ex-Japan.

The MSCI Emerging Markets Climate Paris Aligned ETF (HPEM) and the HSBC Asia Pacific ex-Japan Climate Paris Aligned UCITS ETF (HPAX) are listed on the London Stock Exchange with total expense ratios (TERs) of 0.18% and 0.25%, respectively.

Listing on 7 April, HPEM tracks the MSCI Emerging Markets Climate Paris Aligned index while HPAX will track the MSCI AC Asia Pacific ex Japan Climate Paris Aligned index and will list on 11 April.

The ETFs will target investors looking to integrate net-zero considerations into their portfolios and will lean towards companies that are 1.5°C aligned.

Furthermore, they will look to overweight companies with a high proportion of ‘green revenue’, those putting forward credible decarbonisation solutions and those exposed to lower physical climate risk.

Both ETFs are classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

Olga de Tapia (pictured), global head of ETF and indexing sales at HSBC AM, said: “Enabling our clients to improve the social and environmental impact of their portfolios is a priority for us.

“With the addition of these two new ETFs, we are pleased to provide investors and asset allocators a comprehensive suite of core PAB building blocks.”

The launch takes the number of climate ETFs launched by HSBC AM to six after it launched the HSBC Japan Climate Paris Aligned UCITS ETF (HPJP) last November.

Last July, the UK asset manager launched its first Paris-aligned ETF, HSBC MSCI World Climate Paris Aligned UCITS ETF (HPAW). This was followed a month later by the HSBC MSCI USA Climate Paris Aligned UCITS ETF (HPAU) and the HSBC MSCI Europe Climate Paris Aligned UCITS ETF (HPAE).

Published on April 14, 2022

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