Launch stream

HSBC launches sustainable bond ETF

Olga de Tapia

HSBC Asset Management is expanding its fixed income ETF range with the launch of the HSBC Bloomberg Sustainable Global Aggregate 1-3y Bond UCITS ETF.

It will track the Bloomberg MSCI Global Aggregate 1-3 Year SRI Carbon ESG-Weighted Index, an investment grade index that seeks to provide broad-based and diversified exposure across fixed income asset classes, including government and corporate bonds across both developed and emerging markets.

HSBC AM said the ETF aims to achieve a carbon emission intensity reduction target of greater than 50%, an ESG score improvement target of over 5%, relative to the parent index, and is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Olga de Tapia (pictured), global head of ETF & indexing sales for the group, commented: “Providing our clients with a viable means of improving the social and environmental impact of their portfolios is a priority for us. As ETFs continue to play an ever-greater role in client portfolios, it’s crucial that they support the net zero transition. With a significant improvement in ESG score and a notable reduction in carbon intensity, our latest fixed income ETF will help investors to achieve this.”

It has been listed on the London Stock Exchange and further European listings are expected in the coming weeks. It carries a TER of 0.18%.