HSBC opens Canada ETF to Europe

HSBC has opened a Canadian ETF to its European investors, with the aim of tapping into demand for commodities.

The HSBC MSCI Canada ETF opened Thursday, 24 February 2011, listed on the London Stock Exchange in both sterling and dollar share classes. Further registrations and cross-listings are planned, the bank said.

The ETF aims to replicate the performance of the MSCI Canada Index, designed to offer exposure to leading companies listed on the index. It carries a Total Expense Ratio (TER) of 0.35%.

Expected future demand for commodities has prompted the move into Canada, said HSBC’s head of ETF Sales in Europe Mark Rodino.

“We believe that the world is in the early stages of a commodity super-cycle driven by the need for massive infrastructure spending and rising standards of living within global emerging markets.

“Canada, with its significant abundance of natural resources should be well placed to benefit from these positive macro trends,” he said.

“Sometimes overlooked by international investors, we think that Canada, with the relatively uncommon combination of being rich in natural resources coupled with having a stable political system has attractive features for growth investors,” he added.

It is the 17th ETF to be launched by the bank to investors in Europe. The latest ETF completes the bank’s core developed market ETF offering, said Rodino.

Other developed markets ETFS from HSBC include those linked to the EURO STOXX 50, MSCI Japan, FTSE 250, S&P 500, MSCI Europe and MSCI USA.

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