HSBC has unveiled two ETFs based on MSCI indices tracking the US and European markets.
The HSBC MSCI USA ETF physically replicates the underlying MSCI index by investing in its constituent stocks.
The total return, free float adjusted index measures the performance of large and mid-cap US equity markets and reinvests dividends.
The Ucits-compliant fund is denominated in US dollars and has a total expense ratio of 0.30%.
The HSBC MSCI Europe ETF also physically replicates the underlying MSCI index and has an expense ratio of 0.30%. Both the funds are listed on the London Stock Exchange.
HSBC head of ETFs Farley Thomas says the firm plans to become a major provider of ETFs within the next three years and therefore must meet the needs of investors.
He says: "The investment community in Europe uses a few different indices to gain exposure to the US market, including the S&P 500 and MSCI USA. By providing ETFs that track more than one index in the American and European markets, we are better placed to meet our customers' needs."
He adds: "We firmly believe that ETFs offer an attractive method of tracking markets that investors already want access to, so we will launch products that tap this flow."
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