Exchange Traded Products
HSBC adds CIVETS and Emerging Markets funds to ETF range
Rob Langston, 21 June 2011
HSBC Global Asset Management is to add a further two exchange-traded funds (ETFs) focusing on emerging markets to its growing range of index-tracking products.
The HSBC MSCI Emerging Markets and HSBC S&P CIVETS 60 ETFs will sit alongside its current stable of products.
The asset manager already offers MSCI Emerging Markets Far East and MSCI Emerging Markets Latin America ETFs, but the addition of the MSCI Emerging Markets will offer a more general indextracking product.
Both existing MSCI Emerging Markets ETFs – launched within the past year – have total expense ratios of 0.6 per cent.
The Far East ETF has gathered assets under management of $11.7 million, while the Latin America ETF has generated $19.2 million.
S&P’s CIVETS 60 index was launched earlier this year and tracks the performance of ten stocks from each of the six CIVETS countries.
The CIVETS group of countries comprises Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.
At launch, S&P indices claimed that the index was unique and would serve as the basis for ETFs in Europe and Asia. To be included in the index, stocks must have a float-adjusted market capitalisation of more than $500 million.
The CIVETS ETF is the latest foray for HSBC into this group of countries, which is tipped as the next BRIC grouping (Brazil, Russia, India and China), following the recent launch of an actively managed openended fund.
The Luxembourg-domiciled SICAV launched in May with an annual management charge of 1.75 per cent, but has the ability to hold 25 per cent of its portfolio in non-CIVETS countries.
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