HSBC Japan Sustainable Equity UCITS ETF

Issuer: HSBC

Asset Class: Equity

TER: 18bps

Trading Currency: USD

Pays Income: False

Listing Date: 05 Jun 2020

Ticker: HSJD

ISIN: IE00BKY55S33

This fund offers a targeted investment approach to the Japanese equity market, providing investors with broad exposure to a portfolio of large and mid-capitalization companies. It is designed to closely track the performance of a custom-tailored market index, offering a passive and cost-effective way to access the core of Japan's corporate landscape. The underlying portfolio consists of publicly listed firms that represent the diverse sectors driving one of the world's largest developed economies.

The key feature of this investment is its integration of responsible investment principles through a rigorous screening process. The underlying index applies specific Environmental, Social, and Governance (ESG) criteria, systematically excluding companies with significant involvement in controversial industries such as weapons manufacturing, tobacco, and thermal coal. It also filters out businesses that fail to comply with the principles of the UN Global Compact. Furthermore, the strategy incorporates a low-carbon tilt, aiming to reduce the portfolio's carbon footprint by favoring companies with better carbon efficiency and lower potential emissions, thereby aligning the investment with climate-conscious objectives.

This product is well-suited for investors seeking to build a core allocation to Japanese equities while adhering to sustainability and ethical values. It provides a comprehensive solution for those who want to participate in Japan's economic prospects without exposure to certain industries and business practices deemed harmful or unsustainable. By combining broad market access with a robust ESG and low-carbon framework, the fund caters to the growing demand for investments that can generate competitive returns while contributing to positive societal and environmental outcomes.