HSBC GAM slashes fees on three equity ETFs

Jan 10th, 2020 | By | Category: ETF and Index News

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HSBC Global Asset Management has slashed the fees charged on three equity ETFs providing exposure to developed Europe, Pacific ex-Japan, and emerging markets stocks.

HSBC GAM slashes fees on three regional equity ETFs

HSBC GAM has slashed fees on three regional equity ETFs.

The ETFs, which range in size from $30 million to $190m in assets under management, are all linked to market-cap-weighted indices from MSCI that cover the large and mid-cap segments of their respective regions.

The move comes just a week after the firm announced its intention to re-invigorate its ETF business in 2020 including plans to launch ESG, fixed income, and precious metals products.

The most notable fee cut is the HSBC MSCI Emerging Markets UCITS ETF (HMEM LN) which has had its expense ratio reduced from 0.40% to 0.15%.

The fund, which is linked to the widely followed MSCI Emerging Markets Index, becomes the lowest-cost emerging markets ETF in Europe, three basis points cheaper than its closest rival, the $15.2bn iShares Core MSCI Emerging Markets IMI UCITS ETF (EIMI LN).

The asset manager’s European and Pacific ex-Japan ETFs have also experienced significant price reductions, each seeing their expense ratio cut by at least half.

The HSBC MSCI Europe UCITS ETF (HMEU LN) has had its expense ratio reduced from 0.20% to 0.10% and now becomes the cheapest ETF in Europe to track the MSCI Europe Index, undercutting the $6.5 billion iShares Core MSCI Europe ETF (IMEU LN) which costs 0.12%.

The HSBC MSCI Pacific ex Japan UCITS ETF (HMXD LN) meanwhile has had its expense ratio reduced from 0.40% to 0.15%.

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