Bringing you live news and features since 2006 

Bringing you news, views and analysis since 2013

HSBC Asset Management launches new Shariah screened ESG ETFs

HSBC Asset Management (HSBC AM) has further expanded its ETF and indexing product suite with five new Islamic ESG ETFs.

The HSBC MSCI USA Islamic ESG UCITS ETF launched on the London Stock Exchange. The funds will be classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).

The firm writes that four other Islamic ESG ETFs are set to launch in the upcoming months, these include:



HSBC MSCI Emerging Markets Islamic ESG UCITS ETF

HSBC MSCI AC Asia Pacific ex Japan Islamic ESG UCITS ETF

HSBC writes that the index screening methodology first applies a set of Shariah exclusions (e.g. alcohol, gambling & pork related products). This Islamic screen has two levels, financial screening and business activity screening, to ensure compliance with Shariah investment principles. This is followed by a set of norms-based exclusions via a Socially Responsible Investment (SRI) screen (e.g. nuclear weapons & producers of firearms). There will be some overlap between the Islamic and norms-based screening (e.g. tobacco & controversial weapons). The methodology then tilts towards companies with stronger ESG credentials as defined by their MSCI ESG scores.

The ETFs aim to track their respective MSCI Islamic Universal Screened indices as closely as possible. They will be rebalanced annually and the restrictions are applied on a quarterly basis. MSCI applies a dividend purification factor to all reinvested dividends, reviewed on annual basis

Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC AM says: “There is growing appetite for a range of Islamic passive products as investors look to build Shariah compliant multi-asset portfolios. We are proud of our long-term commitment of serving Islamic investors worldwide and excited to bring innovative solutions to these clients.

“We see a natural overlap between faith based screening and standard SRI filters and this set of toolkit funds will provide investors with a pathway to gain holistic risk profiled market exposure in compliance with Shariah law.”

Latest News

ETF data providers ETFGI report that assets invested in the global ETFs industry extended its lead over the global hedge..
Never a dull moment for Cathie Wood, founder and CEO of ARK Invest. In 2020 she was the ETF darling enjoying..
New data from ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK,..
New York based MacMillan Communications, a well-known provider of public relations services to the finance industry since 1996, which has..

Related Articles

Osprey Funds’ founder and CEO, Greg King, has written an open letter to Barry Silbert, majority owner of Digital Currency Group which owns Grayscale, suggesting that he uses his powers...
Comparing multifactor ETFs to the popular Marvel Avengers series may seem a bit of a stretch but recent analysis from Morningstar suggests the investment strategies have more in common with...
Franklin Templeton, with global ETF AUM exceeding USD13 billion, launched its European ETF offering in 2017, and announced last year the hire of Lotfi Ladjemi as Senior ETF Sales Specialist...
Welcome to the 2023 ETF Express Global Outlook, in association with Qontigo’s STOXX index business, which garners the views of global ETF investors on likely trends for the coming year....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by