HSBC Global Asset Management has expanded its low carbon ESG ETF range with the launch of a emerging markets product.
The HSBC Emerging Market Sustainable Equity UCITS ETF (HSEM) is listed on the London Stock Exchange (LSE) with a total expense ratio (TER) of 0.18%.
Similar to the rest of the range, HSEM tracks a newly launched FTSE Russell index, the FTSE Emerging ESG Low Carbon Emissions Select index.
This index targets a 20% ESG improvement, a 50% carbon emissions reduction and a 50% fossil fuels reserves reduction.
Last week, HSBC GAM added the HSBC Asia Pacific ex Japan Sustainable Equity UCITS ETF (HSXD) to the suite, the first ESG ETF in Europe to offer exposure to Asia Pacific ex-Japan.
The latest launch takes the firm’s low carbon ESG ETF range to six.
Olga De Tapia (commented), global head of ETF sales at HSBC GAM, commented: “With emerging markets being a key part of our DNA, we are pleased to offer clients a cost-effective solution to access companies that are transitioning towards a lower carbon economy in this space.”
HSBC will provide custody and fund administration services to HSEM as well being the authorised participant and market maker.