HSBC looks to complete EM line-up

HSBC is considering launching exchange traded funds covering Russia, India, emerging markets Europe and Civets (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa).

Global head of ETFs and wealth solutions Farley Thomas says he expects to complete the firm’s emerging market line-up by the end of the year.

He says: “Countries like Russia and India will inevitably be in focus for expansion of emerging market ETFs. India and Russia are quite challenging environments to offer ETFs and many of our competitors have launched swap-based products. We want to deliver as much as possible a physical investment.”

Thomas says ETFs’ low cost, transparency, risk control and choice will ensure they continue to grow in popularity.

He says: “A gap in our line-up is also an emerging market Europe ETF that includes Russia, Poland and Hungary. That is part of the pipeline of products we are researching and looking at launching. A Civets ETF is another part of the pipeline.”

Hargreaves Lansdown investment manager Ben Yearsley says: “There are a huge number of ETFs. You have to wonder is there room for everybody? One emerging market ETF is the same as the next one. The ability for the ETF to track an index is going to be more important as competition gets tougher.”