HSBC UK Sustainable Equity UCITS ETF (Dist)

Issuer: HSBC

Asset Class: Equity

TER: 12bps

Trading Currency: USD

Pays Income: False

Listing Date: 27 Jul 2022

Ticker: HUKD

ISIN: IE00046S3PW1

This financial product provides targeted exposure to the United Kingdom's equity market, focusing on a portfolio of large and mid-capitalisation companies. It is designed for investors seeking to integrate Environmental, Social, and Governance (ESG) principles into their core UK holdings. The underlying strategy meticulously follows a benchmark that applies specific values-based exclusions. This screening process removes companies with significant business activities in controversial sectors such as thermal coal production, tobacco, and certain types of weapons manufacturing. Additionally, firms that are found to be non-compliant with the United Nations Global Compact principles are also excluded from the portfolio.

By investing in this product, individuals gain access to a broad and diversified basket of UK stocks while adhering to sustainable and ethical considerations. The strategy aims to capture the performance of the mainstream UK market, but with a reduced footprint in industries that may pose ESG-related risks or conflict with an investor's personal values. The use of a physical replication methodology means the fund holds the actual shares of the constituent companies, offering a high degree of transparency and a direct investment in the underlying assets. This approach provides a straightforward, low-cost solution for building a socially responsible core within a UK-centric investment portfolio.