HSBC Asset Management has launched five funds as it enters the active ETF market.
The company said the exchange traded funds use a “quantitative driven investment approach”.
Olga de Tapia, global head of ETF and indexing sales at HSBC AM, said: “The active ETF market is enjoying strong growth, and we are pleased to introduce our suite of funds in this space as part of our efforts to bring innovative and relevant investment tools to investors.
“Our HSBC PLUS Active ETF range combines quantitative active management with the efficiency of an ETF structure and aims to provide investors with additional alpha beyond core passive exposures in a cost-efficient way and ensuring resilience across diverse market cycles and economic regimes.”
The funds, which will be listed on the London Stock Exchange, are:
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HSBC PLUS USA Equity Quant Active UCITS ETF
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HSBC PLUS World Equity Quant Active UCITS ETF
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HSBC PLUS Emerging Markets Equity Quant Active UCITS ETF
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HSBC PLUS World Equity Income Quant Active UCITS ETF
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HSBC PLUS Emerging Markets Equity Income Quant Active UCITS ETF
HSBC said its investment approach aims to target drivers of equity returns and select stocks based on their “style characteristics”.
It said this includes picking stocks which show the greatest association with value, quality, industry momentum, low risk and size.
De Tapia added: “As investors seek more sophisticated strategies and more efficient ways to capture risk premia, as well as enhance equity returns in today’s complex investment environment, we believe factor strategies can be used to complement existing investments and help with diversification by sitting in a space between traditional active and passive investments.”
tara.o’connor@ft.com
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