HSBC Asset Management has launched an ETF capturing sustainable equities in Europe while excluding UK companies.
The HSBC Europe ex UK Sustainable Equity UCITS ETF (HSXU) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.15%.
HSXU tracks the FTSE Developed Europe ex UK ESG Low Carbon Select index which aims to beat the ESG score of its parent benchmark by 20% while achieving a carbon emission intensity reduction of up to 50% and a fossil fuel reserve reduction of up to 50%.
HSXU is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR) and will be rebalanced quarterly.
HSBC AM added as ESG practices evolve and issuers disclose more data, the ETF’s screening methodology will adapt accordingly.
Olga de Tapia (pictured), global head of ETF & indexing sales at HSBC AM, said: “Our priority is to provide our clients with a viable means of improving the social, governance and environmental impact of their portfolios.
“HSXU adds to our suite of sustainable passive building blocks and provides investors and asset allocators with greater opportunities to support the transition to more sustainable investing.”
HSXU becomes HSBC AM’s third sustainability-focused launch in April after the arrival of the HSBC MSCI Emerging Climate Paris Aligned UCITS ETF (HPEM) and HSBC Asia Pacific ex-Japan Climate Paris Aligned UCITS ETF (HPAX) earlier in the month.