HSBC Developed World Sustainable Equity UCITS ETF (Dist)
| Issuer: HSBC |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 27 Jul 2022 |
| Ticker: HSDD |
| ISIN: IE000ZGT8JM8 |
This investment product offers exposure to a broad basket of large and mid-cap stocks from developed countries around the world. It is designed for investors looking for core equity exposure that aligns with environmental, social, and governance (ESG) principles. The strategy follows a specific index that applies sustainability criteria to its selection process. This means it actively screens companies based on their ESG performance, aiming to improve the overall sustainability profile of the portfolio compared to a standard market-cap weighted index.
The core thesis is to capture the long-term growth potential of developed economies while mitigating risks associated with poor corporate governance and negative environmental impacts. Specifically, the underlying index methodology reduces exposure to companies with high carbon emissions and significant fossil fuel reserves. This dual-focus approach appeals to investors who believe that sustainable business practices will lead to superior risk-adjusted returns over time. By excluding companies involved in controversial sectors and favouring those with stronger ESG credentials, the portfolio is positioned to benefit from the global transition towards a more sustainable, low-carbon economy.
This fund is suitable for investors seeking a foundational, globally diversified equity holding with a built-in sustainability screen. It can serve as a core component in a long-term portfolio, providing access to established markets such as North America, Europe, and developed Asia. The strategy's emphasis on ESG and low carbon characteristics makes it particularly relevant for those who wish to align their investments with their values without sacrificing broad market participation. It offers a convenient, single-product solution for gaining exposure to a screened portfolio of international companies that are leaders in sustainable practices.
