HSBC Developed World Sustainable Equity UCITS ETF
| Issuer: HSBC |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 10 Jul 2020 |
| Ticker: HSWD |
| ISIN: IE00BKY59K37 |
This fund offers a strategic approach for investors looking to gain core exposure to global developed equity markets while adhering to responsible investment principles. The investment objective is to replicate the performance of a custom benchmark that screens large and mid-cap companies from developed nations based on specific Environmental, Social, and Governance (ESG) criteria. The underlying index specifically excludes businesses involved in controversial sectors such as tobacco, thermal coal, and certain weapons manufacturing. Furthermore, it filters out companies that fail to comply with the principles of the United Nations Global Compact, ensuring a baseline of corporate responsibility.
By integrating these screens, the portfolio is tilted towards companies with better ESG profiles and significantly lower carbon footprints compared to a traditional market-cap weighted index. The methodology aims to reduce exposure to carbon emissions and fossil fuel reserves, aligning the investment with the goals of a low-carbon economy. This provides investors with a diversified basket of equities from regions like North America, Europe, and Asia Pacific, but with a conscious effort to mitigate climate-related transition risks and promote sustainable business practices. The fund utilizes a physical replication strategy, meaning it holds the actual stocks of the index, which provides transparency and direct ownership of the underlying assets.
This product is well-suited to serve as a foundational holding in a long-term investment portfolio. It is designed for those who seek broad, international equity diversification but also want to ensure their capital is allocated towards companies that demonstrate stronger sustainability characteristics. It offers a simple, cost-effective solution to combine market-like returns with a positive environmental and social impact, making it an attractive option for the modern, conscientious investor.
