View more on these topics

HSBC adds trio of physical ETFs to GEMs range

HSBC is launching three emerging market exchange traded funds, focusing on Hong Kong, global emerging Europe and global emerging markets.

HSBC head of ETFs Farley Thomas says the Hong Kong ETF will be based on the Hang Seng index.

He says all three will be physical ETFs rather than swap-based. Thomas says: “There will be regulatory action at some point on swap-based ETFs. You can track most markets physically and trading in this simple way has real value.

“HSBC has a good insight into how emerging markets work and investors expect us to have a good line-up.”

HSBC is also considering launching an India ETF but Thomas says it is more complicated to create a physical ETF for the country as it is problematic because of tax issues.

Earlier this month, HSBC launched a European ETF to physically track the Russian stockmarket. It will rival the iShares swap-based Russia ETF.

HSBC’s Russia ETF, with a total expense ratio of 0.60 per cent, aims to replicate the performance of the MSCI Russia Capped Total Return Net index.  Best invest senior adviser Adrian Lowcock says:

“There is the assumption that swap-based ETFs are risky but just because an ETF is physically backed does not mean it is not risky. Asset managers can do stock lending with physically-backed ETFs, where the collateral is not the same as what it is tracking.”

Skerritt Consultants head of investments Andrew Merricks says: “ETFs can be good to access single markets and they are useful if they are in the right hands.

“HSBC is a big global bank and so its ETFs give investors a sense of security. The bank is well known in emerging markets and has a physical presence there, too.”



MM Leader: Regulator needs to reflect on MPs’ RDR report

With hindsight, you would expect the FSA regrets its decision to so swiftly reject the Treasury select committee’s call for the RDR to be delayed by 12 months. The move has angered members of the committee who have accused the FSA of arrogance and treating the committee with contempt. TSC chairman Andrew Tyrie last week […]

George Soros to retire from hedge fund business

Billionaire investor George Soros has decided to retire after more than four decades in the hedge fund industry. A letter signed by Soros’ sons, Jonathan and Robert, the co-deputy chairmen of Soros Fund Management, says the firm will return money to outside investors by the end of the year but continue to manage the assets […]

Ex-Barclays adviser jailed for £600k fraud

An ex-Barclays adviser has been jailed after stealing £600,000 from dead, elderly and ill customers to fund his gambling addiction. James Leonard Finnigan was jailed for four years at the Old Bailey on July 15, having pleaded guilty to the fraud. Finnigan worked as an adviser at a Barclays branch in Twickenham between 1999 and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm