HSBC Multi Factor Worldwide Equity UCITS ETF (Acc)

Issuer: HSBC

Asset Class: Equity

TER: 25bps

Trading Currency: GBP

Pays Income: False

Listing Date: 27 Jul 2022

Ticker: HWWS

ISIN: IE0000378O66

This investment vehicle offers a strategic approach to global equity investing, moving beyond traditional market-capitalisation-weighted indices. It provides exposure to a diversified portfolio of companies across both developed and emerging markets. The core of its strategy lies in a multi-factor methodology, which systematically selects and weights securities based on five distinct and well-researched equity factors: Value, Momentum, Quality, Low Volatility, and Size. This rules-based process is designed to capture the potential excess returns historically associated with these characteristics, aiming for enhanced performance over a full market cycle.

By combining these five factors, the portfolio seeks to deliver a more balanced and potentially more resilient return profile. Each factor targets a different driver of stock performance; for example, 'Value' seeks undervalued companies, while 'Momentum' focuses on stocks with strong recent price trends, and 'Quality' identifies financially robust businesses. This diversification across factors can be beneficial as different factors may outperform in different economic environments, helping to smooth out portfolio returns over time.

This fund is designed for investors looking for a core global equity holding that incorporates a sophisticated, evidence-based investment process. It can serve as a foundational piece of a portfolio, offering broad international diversification combined with a systematic tilt towards academically-supported drivers of return. The strategy aims to provide long-term capital growth while managing risk through its diversified, multi-pronged approach to stock selection.