New Listing

HSBC AM unveils Nasdaq global climate tech ETF

TER 0.50%

Theo Andrew

Olga De Tapia

HSBC Asset Management has expanded its range of thematic ETFs with the launch of a global climate technology strategy, ETF Stream can reveal.

The HSBC NASDAQ Global Climate Tech UCITS ETF (HNCT) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.50%.

HNCT will also be listed on the Deutsche Boerse and Borsa Italiana at a later date.

The ETF tracks the Nasdaq CTA Global Climate Technology index which selects stocks based on three classifications by the Consumer Technology Association.

The classifications comprise enablers, those developing the core technology to facilitate the green transition; engagers, those with tangible products and technology within climate tech; and enhancers, companies that service existing technologies in the climate transition.

Within this, companies will be selected from five subcategories, power sources and storage, climate infrastructure, agriculture, adaptation and transportation.

Following this, the index will use several factors including market capitalisation, revenue, market share, patents and product launches to select the final index.

It will also use an ESG screening methodology to exclude companies with material involvement in thermal coal, oil and gas and controversial weapons, as well as United Nations Global Compact violators.

The ETF is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Olga de Tapia (pictured), global head of ETF and indexing sales at HSBC AM, said: “Scalable technology solutions have a significant part to play in addressing some of the challenges associated with climate change and we believe thematic ETFs present an exciting way for investors to build climate tech exposure into their portfolios and access this crucial theme.”

Last month, the asset manager expanded its Shariah-compliant range of ETFs, with the launch of The HSBC MSCI Japan Islamic ESG UCITS ETF (HIJP) and the HSBC FTSE EPRA Nareit Developed Islamic UCITS ETF (HINS).

It follows the launch of Europe’s first global sukuk ETF earlier in September.

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