HSBC launches ETF strategy for Europe

HSBC will launch its first exchange traded fund (ETF) product in Europe tomorrow (August 25). Listed on the London Stock Exchange and tracking the FTSE 100 index, the Ireland-domiciled ETF will be sold first in the UK, and later in continental Europe. The total expense ratio will be 0.35%.

HSBC Global Asset Management will be the investment manager and HSBC Global Markets will ensure liquidity as a market maker.

HSBC has an ETF business in Asia, through majority-owned Hang Seng Bank and HSBC Global Asset Management in Hong Kong, which boast almost 8% of regional ETF assets under management, according to HSBC. On August 14 2009, Hang Seng Bank's ETFs became the first Hong Kong-listed funds to also be listed in Taiwan.

HSBC plans to extend its ETF business across Asia, Latin America