HSBC Asset Management (HSBC AM) has entered the active ETF market by launching five funds under its HSBC PLUS Active ETF range.
The new offerings are designed to combine the liquidity and transparency of the ETF structure with the performance potential of active management, targeting investors seeking country-specific and regional equity exposures, shared the investment management business of the HSBC Group.
The core strategies—focused on the USA, world, and emerging markets—seek to maximise exposure to high-ranking stocks based on factor strength while maintaining a balanced portfolio risk profile.
The HSBC Plus Active ETF range utilises a quantitative investment approach, leveraging HSBC AM’s proprietary factor-based stock selection process. This methodology, developed over two decades through the firm’s quantitative equity capabilities, targets key drivers of equity returns such as value, quality, industry momentum, low risk and size. The approach aims to identify stocks that exhibit favourable ‘style’ characteristics, allowing for a structured and risk-aware allocation.
The five funds include HSBC PLUS USA Equity Quant Active Ucits ETF, HSBC PLUS World Equity Quant Active Ucits ETF, HSBC PLUS Emerging Markets Equity Quant Active Ucits ETF, HSBC PLUS World Equity Income Quant Active Ucits ETF, and HSBC PLUS Emerging Markets Equity Income Quant Active Ucits ETF.
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The income strategies are designed to identify equities offering attractive income and quality characteristics, aiming to deliver higher income than traditional market-cap indices while preserving capital growth. According to HSBC AM, these funds are suited for investors looking for an enhanced income profile without sacrificing the potential for long-term equity returns.
The funds will be registered for sale across Austria, Germany, Spain, France, Italy, Luxembourg, Sweden and the UK. They will also be listed on major European exchanges including the London Stock Exchange, Borsa Italiana and Xetra.
Olga de Tapia, global head of ETF and indexing sales at HSBC AM, commented: “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.
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.”
