HSBC MSCI World Small Cap Screened

ETF description

This ETF is designed to give investors access to a broad set of smaller‑sized companies from developed nations around the world. These are businesses that are smaller in market value compared to large multinational corporations. What makes this fund distinct is that it applies filters to exclude companies involved in certain industries such as fossil fuels, tobacco, weapons and gambling, while favouring companies whose environmental, social and governance practices meet certain standards.

By investing in many smaller companies, the fund aims to capture potential growth opportunities that may come from firms that are less established than the large players. Potentially, this may appeal to investors who are comfortable with a greater level of variability in their investments and are looking for exposure to global equity markets beyond the major blue‑chip brands.

Issuer details

HSBC Global Asset Management is a leading asset management firm and subsidiary of HSBC Holdings plc. With over $500 billion in assets under management as of June 2024, HSBC offers many investment products, including ETFs and covers various market segments.

Established in 1973, HSBC Global Asset Management has a global presence with a particular focus on emerging markets, leveraging its expertise in these regions. Notable ETFs include the HSBC MSCI Emerging Markets UCITS ETF and the HSBC S&P 500 UCITS ETF, reflecting HSBC’s focus on providing exposure to global markets and diversified investment options.

Index details

The Index is a subset of the MSCI World Index (Parent Index), and is made up of small cap companies based in certain developed market countries, as defined by the Index Provider. The Index is constructed by screening all securities of companies and excluding securities with exposure to: controversial and nuclear weapons, adult entertainment, alcohol, gambling, nuclear power, thermal coal power, fossil fuel and tobacco. The Fund is passively managed and utilises an investment technique called optimization. The Fund aims to invest in the shares of the companies in generally the same proportion as in the Index.