Exchange Traded Products
HSBC to launch Property and Russian ETFs
Joe McGrath, 10 May 2011
EXCLUSIVE: HSBC Asset Management is to launch two new Exchange Traded Funds (ETFs) focussed on global property and Russia.
What Investment.co.uk understands that the HSBC FTSE EPRA/NAREIT Developed Index ETF will track the index, which measures the stock performance of property companies listed in North America, Europe and Asia.
This product will go head to head with an ETF from iShares which is also listed on the London Stock Exchange and tracks the FTSE EPRA/NAREIT Developed Markets index.
It is not yet known whether the HSBC product will have a lower Total Expense Ratio (TER) than that of the iShares product. The iShares ETF has a TER of 0.59 per cent.
The second fund to be launched is the HSBC MSCI Russia Capped ETF, which will track the index monitoring the Russian Standard Index.
MSCI’s Russia Capped tracks constituents on the Russian Standard index and caps those with a weighting greater than 25 per cent daily to 22.5 per cent and quarterly to 20 per cent.
Philip Scott, senior media relations manager for HSBC Global Asset Management confirmed the two funds have been ‘filed for launch’ but said that more detailed information was not ready for release to market.
He explained, ‘All we can confirm at this point are that these are ETFs we have filed for launch but we are finalising exactly when and the product details.
‘We are planning to launch these in the next few months but we cannot confirm since dates do change and sometimes launches can be delayed.’
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