HSBC Global Asset Management is set to add to its range of exchange-traded funds (ETFs) with the launch of an South African index-tracking product.

The HSBC MSCI South Africa ETF will track the South African index when it launches later in the the first quarter and will have a total expense ratio (TER) of 0.6 per cent.

BlackRock Global Investors-owned  ETF provider iShares it has the only other London-listed MSCI South Africa product.

However, the HSBC ETF undercuts its rival with a total expense ratio (TER) 14 basis-points (0.14 per cent) lower than its rival as the bank aims to make headway in the ETF market.

Farley Thomas, head of ETFs at HSBC, said, 'In keeping with our focus on emerging markets, we are planning to launch a South Africa ETF later this quarter.

'This is one of the bigger economies within the emerging markets universe and HSBC Global Research has a positive view on this market for 2011.'

He added, 'The planned launch of the HSBC MSCI South Africa ETF aims to provide investors with high quality and good value access to this potentially high growth story.'

HSBC has launched a number of ETFs into the market offering rates lower than a number of its competitors.