HSBC Europe Sustainable Equity UCITS ETF EUR (Dist)
| Issuer: HSBC |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 06 Jul 2022 |
| Ticker: HSES |
| ISIN: IE000WARATZ3 |
This fund offers a targeted approach for gaining exposure to a diversified portfolio of developed European companies that meet stringent environmental, social, and governance (ESG) criteria. The strategy is designed for investors who want to align their capital with sustainability objectives without sacrificing broad market exposure to the European region. It achieves this by passively tracking a specific index that applies a multi-layered screening process to a parent universe of European stocks, aiming to replicate the performance of its underlying sustainability-focused benchmark.
The fund's methodology involves first excluding companies with significant business activities in controversial sectors such as certain types of weapons, tobacco, thermal coal, and oil sands. Following these exclusions, the remaining companies are evaluated and weighted based on their ESG ratings and carbon intensity. The index tilts towards companies with better ESG profiles and lower carbon emissions, effectively creating a portfolio with an improved sustainability profile and a reduced carbon footprint compared to the broader European market. This construction results in a core equity holding that emphasizes corporate responsibility and environmental stewardship.
By investing in this fund, individuals can gain access to leading European firms across various sectors that are actively managing their ESG risks and opportunities. The physical replication method means the fund holds the actual shares of the companies in the index, providing direct ownership. As a distributing share class, it aims to pay out any income generated from the underlying holdings to investors on a semi-annual basis, making it a suitable option for those seeking a combination of potential capital growth and an income stream from a socially responsible European equity investment.
