HSBC USA Sustainable Equity UCITS ETF

Issuer: HSBC

Asset Class: Equity

TER: 12bps

Trading Currency: GBP

Pays Income: False

Listing Date: 05 Jun 2020

Ticker: HSUS

ISIN: IE00BKY40J65

This investment vehicle provides targeted exposure to the U.S. equity market, with a distinct focus on companies that meet specific sustainability criteria. The strategy is designed to closely mirror the performance of the FTSE USA ESG Low Carbon Select Index, which is composed of large and mid-capitalization U.S. companies. By tracking this index, the fund invests in firms that demonstrate strong Environmental, Social, and Governance (ESG) practices. A key feature of its methodology is a tilt towards businesses with lower carbon emissions and reduced exposure to fossil fuel reserves, aligning the portfolio with the transition to a more sustainable, low-carbon economy.

The underlying index employs a rigorous screening process to construct its portfolio. It systematically excludes companies with significant involvement in controversial sectors, such as tobacco, controversial weapons, and thermal coal mining. Furthermore, firms that are found to be in violation of the United Nations Global Compact principles are also removed. The remaining constituents are then weighted based on their ESG ratings and carbon characteristics. This results in a diversified portfolio that provides core exposure to the world's largest economy, while embedding responsible investing principles directly into its framework, making it an attractive option for investors looking to align their financial goals with their personal values.

Ultimately, this fund offers a cost-effective and transparent solution for investors seeking long-term capital appreciation from a basket of leading American corporations that are actively managing their environmental and social impact. It is well-suited for those who wish to integrate climate risk considerations and broader sustainability themes into their core U.S. equity allocation. By investing in companies potentially better positioned for future regulatory changes and consumer trends, the strategy aims to achieve sustainable growth in both financial and ethical terms.