HSBC MSCI Japan Islamic ESG UCITS ETF USD (Acc)

Issuer: HSBC

Asset Class: Equity

TER: 30bps

Trading Currency: USD

Pays Income: False

Listing Date: 29 Sep 2023

Ticker: HIJP

ISIN: IE0001XCFC82

This fund offers a targeted approach for investors seeking to access the Japanese equity market while adhering to Islamic investment principles. It aims to replicate the performance of an index comprising large and mid-capitalisation Japanese companies that are compliant with Shariah law. The screening process meticulously excludes businesses involved in sectors such as alcohol, tobacco, gambling, pork-related products, and conventional interest-based finance. This ensures the portfolio aligns with the core tenets of Islamic finance, providing a values-based investment solution.

The investment strategy is particularly suitable for those who wish to combine their ethical or religious convictions with exposure to one of the world's most advanced economies. The Japanese market is known for its technological innovation, strong industrial base, and globally recognized brands. In addition to the Shariah compliance filter, the underlying index incorporates an Environmental, Social, and Governance (ESG) screen. This dual-layered approach further refines the selection to include companies demonstrating robust sustainability and corporate governance practices, appealing to a broader audience of socially conscious investors.

By investing in this product, individuals can achieve diversified exposure to a responsible and Shariah-compliant segment of the Japanese stock market through a single transaction. As an accumulating fund, any dividends distributed by the underlying holdings are automatically reinvested, facilitating the potential for long-term capital growth through compounding. This structure makes it an efficient instrument for investors with a long-term horizon focused on both ethical principles and sustainable performance.