HSBC confirms ETF expansion

HSBC intends to launch three ETFs investing in global real estate, Russian and Chinese equities, alongside plans to further extend its emerging market coverage.

The bank confirmed today that it has filed for a FTSE EPRA/NAREIT Developed Markets ETF and MSCI Russia Capped ETF, although no launch timetable has been released.

The HSBC ETF website also carries a Master Schedule of Funds documenting a FTSE China 25 ETF which is yet to be launched, while the firm's head of ETFs Farley Thomas recently revealed he was looking at global and regional emerging markets, with a possible focus on Eastern Europe.

HSBC's move into the ETF industry has already shown a taste for emerging market exposure, with 12 of the firm's 23 funds tracking emerging countries and regions. The issuer already runs an MSCI China ETF, but the FTSE China 25 index would offer more targeted access, tracking the 25 largest companies on the Hong Kong exchange.

When iShares replicated the MSCI Russia Capped index it was compelled to develop a swap-based model. All of HSBC's ETF launches to date have used physical structures, but Thomas has previously indicated he has not ruled out using swaps on future funds.