HSBC GAM launches first Hang Seng tech ETF in Europe
HSBC Global Asset Management has launched the HSBC Hang Seng TECH UCITS ETF, which it says is the first UCITS ETF tracking the Hang Seng TECH Index.
The fund listed today on the London Stock Exchange (LSE) with a total expense ratio (TER) of 0.50 per cent. Further listings are expected across Europe in the coming weeks.
The new ETF has been designed to provide investment access to China’s fast growing technology sector by following the performance of the Hang Seng TECH Index, which aims to capture the potential of the 30 largest technology companies listed on the Stock Exchange of Hong Kong. The index contains companies from five different sectors including information technology, industrials, healthcare, consumer discretionary and financials.
Among various eligibility criteria, the companies included in the index must have high business exposure to at least one of five technology themes1. They’re also required to pass an innovation potential screening, with the criteria that they operate a technology-enabled business model delivered via the internet or a mobile platform, have strong research and development investment or a year-on-year revenue growth of at least 10 per cent.
Olga de Tapia, Global Head of ETF Sales at HSBC Global Asset Management, says: “China’s technology sector has seen explosive growth over the past few years and the region is the second biggest global hub for unicorns2, which benefit from access to government incentives and the rapidly growing domestic market of middle class, tech-savvy consumers. The HSBC Hang Seng TECH UCITS ETF offers European investors a transparent and cost-efficient way to invest in this burgeoning sector and seize the unique opportunity it presents.”
Daniel Wong, Director and Head of Research & Analytics at Hang Seng Indexes Company, adds: “We are delighted that a new ETF tracking the Hang Seng TECH Index is debuting in the UK and European markets. We launched the Hang Seng TECH Index to enable investors to access the innovative and increasingly important China technology sector, and we are pleased to see the launch of a Hang Seng TECH Index ETF as the first to offer this opportunity to UCITS investors.”
HSBC Global Asset Management has strong experience and expertise investing in Asian markets, which is reflected in its ETF range. The firm offers the most cost-efficient physically optimised MSCI Emerging Market ETF in Europe3 and physically replicated China A UCITS ETF4, launched in 2011 and 2018 respectively. Earlier this year, it also launched the HSBC Asia Pacific ex Japan Sustainable Equity UCITS ETF, the first sustainable UCITS ETF in the market providing exposure to an Asia Pacific ex-Japan benchmark. The HSBC Hang Seng TECH UCITS ETF further expands and complements this strong offering.