Industry Updates

HSBC GAM halves fee on China ETF

The cheapest China ETF available on the European market has a TER of 0.19%

Tom Eckett

a woman smiling for the camera

HSBC Global Asset Management has halved the fee on its China ETF in a move that will increase the competitiveness of the strategy.

The HSBC MSCI China UCITS ETF (HMCH) has seen its total expense ratio (TER) cut from 0.60% to 0.30%, a significant decrease for investors.

HMCH is one of the firm’s most successful ETFs. Having launched 10 years ago in January 2011, it currently has $683m assets under management (AUM).

The fee cut brings HMCH in line with its competitors. The cheapest China ETF on the European market is the $78m Franklin FTSE China UCITS ETF (FLXC) which has a TER of 0.19%.

The cheapest ETF in Europe tracking the MSCI China index is the $131m Lyxor MSCI China UCITS ETF (LCCN) which is one basis point cheaper than HMCH at 0.29%.

Commenting on the fee cut, Olga de Tapia (pictured), global head of ETF sales at HSBC GAM, told ETF Stream: “China’s prominence in the global economy continues to grow and we have halved the TER of HMCH to further facilitate investor participation in this important economic growth story.”

No longer an ‘optional extra’: What’s in store for China equity ETFs?

HMCH offers investors exposure to 714 Chinese large and mid-cap companies including tech giants Alibaba and Tencent.

The index currently has 55.1% exposure to China H-Shares, 31.8% to ADRs and 12.4% to the A-Shares segment of the market.

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