HSBC MSCI World Value ESG UCITS ETF USD (Acc)

Issuer: HSBC

Asset Class: Equity

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 19 Oct 2022

Ticker: HWVL

ISIN: IE000LYBU7X5

This fund offers targeted exposure to global developed market equities that exhibit strong value characteristics. The core of its strategy is to systematically identify and invest in companies that appear to be trading at a discount to their intrinsic or fundamental worth. This value-oriented approach is based on metrics such as low price-to-book value, low price-to-earnings, and high dividend yield. The objective is to capture potential long-term capital appreciation as the market eventually recognizes the true value of these underpriced securities, a concept that has been a cornerstone of investment theory for decades.

The portfolio is constructed by selecting stocks from the broad MSCI World Index, which provides a diversified foundation of large and mid-capitalization companies across more than 20 developed countries. From this universe, a rules-based methodology is applied to score and select securities that demonstrate the strongest value traits. Furthermore, the 'screened' component of the strategy ensures the exclusion of companies involved in specific controversial business activities, such as controversial weapons and thermal coal, appealing to investors who wish to apply certain ethical considerations to their holdings.

As an accumulating share class, all dividends paid by the underlying companies are automatically reinvested back into the fund. This process enhances the potential for long-term growth through the power of compounding and offers tax efficiency for investors in certain jurisdictions by not distributing taxable income. This makes the product a suitable core holding for investors aiming to build long-term wealth with a strategic tilt towards the value factor, which has historically demonstrated cycles of strong performance relative to the broader market.