As the European exchange traded fund (ETF) market continues to glimmer, one of the world’s largest banking and financial services organizations, HSBC, has entered the arena with the introduction of a FTSE 100 Index Fund listed on the London Stock Exchange.
The HSBC FTSE 100 ETF (HUKX) is designed to track the performance of the FTSE 100 Index, domiciled in Ireland, registered for sale in the United Kingdom and carries an expense ratio of 0.35%. The newly created ETF will be managed by HSBC Global Asset Management and HSBC Global Markets will ensure liquidity as a market maker.
HSBC is no stranger to the ETF universe, as it is already involved in the ETF markets in Asia through its subsidiary Hang Seng Bank and is a well established provider of services to the global ETF industry as a custodian and market maker.
To not much surprise, the move into Europe by HSBC was inevitable. After all, Europe is the leader of the ETF world offering 753 different ETFs of the 1,768 available on the global markets. Additionally, ETF assets under management in Europe rose 28% in the year to July as compared to 17.2% in the United States.
As for ETFs in general, total assets globally hit $862 billion in July, 21% above the start of the year and is one reason HSBC plans to leverage its global capabilities and to extend its ETF business across Asia, Latin America and the Middle East.
