The HSBC MSCI South Africa ETF is listed on the London Stock Exchange in sterling and dollar trading currencies and will have a total expense ratio of 0.6%.
As with all HSBC ETFs launched to date, the HSBC MSCI South Africa ETF will use ‘physical replication’ in tracking its index. The fund will aim to invest in securities in generally the same proportions as in the index but may use financial derivative instruments to replicate the performance of selected securities within the index.
The HSBC MSCI South Africa ETF marks the 16th ETF launch from HSBC in Europe. The first, the HSBC FTSE 100 ETF was introduced in August 2009.
Farley Thomas, head of ETFs at HSBC, said: “South Africa is one of the bigger economies within the emerging markets universe. It has an abundant supply of natural resources alongside well-developed financial, communications, energy, and transport sectors. This new ETF aims to provide investors with high quality and good value access to this potentially high growth story.”
