HSBC has launched the FTSE 250 ETF, which offers investors exposure to the total return performance of medium-sized UK-listed companies representing approximately ten per cent of UK stock market capitalisation.
The fund will initially be listed on the London Stock Exchange, with further registrations in Europe planned in the coming months.
The total expense ratio is 0.35 per cent.
The HSBC FTSE 250 ETF is part of a range of ETFs that HSBC plans to launch across Europe.
The ETF will employ physical replication of the index by mirroring its performance as far as possible through ownership of the index’s underlying shares.
Farley Thomas, head of ETFs at HSBC, says: "The mid-cap segment of the UK market includes some of the fastest growing listed firms, some of which will be future FTSE 100 constituents. Over the past year the FTSE 250 index has soared in line with the global recovery and currently offers a dividend yield of 2.4 per cent. This should make for a potentially very attractive income and capital growth investment that can be included in an Isa.”