New HSBC ETFs on Xetra: investment grade corporate bonds worldwide with positive contribution to the reduction of CO2 emissions

Two new exchange traded funds issued by HSBC Global Asset Management have been tradable on Xetra and Börse Frankfurt since Thursday. 

With the HSBC Bloomberg USD Sustainable Corporate Bond UCITS ETF and the HSBC Bloomberg EUR Sustainable Corporate Bond UCITS ETF, investors invest in US  dollar- and euro-denominated fixed-income bonds of global companies that contribute to a reduction of greenhouse gases. 

For inclusion in the index, bonds must have an investment grade rating, a minimum remaining maturity of one year and a minimum outstanding volume of €300 million or $300 million. In addition to utilities and financial services, companies from the industrial sector are most strongly represented. 

Companies are excluded from the index if they do not comply with the principles of the United Nations Global Compact, are involved in serious ESG-related controversies or have significant business activities in the areas of alcohol, thermal coal, nuclear energy, weapons, gambling, tobacco, or genetically modified. 

Accruing coupon payments are reinvested. The weighting of a company is limited to a maximum of 2 per cent each. 

Name Asset class ISIN On-going charges Distribution policy Reference index 
Bloomberg USD  
Sustainable Corporate Bond UCITS ETF 
Bond ETF IE00BKY81627 0.18 per cent accumulating Bloomberg MSCI US  
Corporate SRI Carbon ESG-Weighted Index 
Bloomberg EUR Sustainable Corporate Bond UCITS ETF 
Bond ETF IE00BKY81B71 0.18 per cent accumulating Bloomberg MSCI Euro  
Corporate SRI Carbon ESG-Weighted Index 

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,749 ETFs. With this selection and an average monthly trading volume of around €17 billion, Xetra is the leading trading venue for ETFs in Europe. 

Further information

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Published on December 9, 2021

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