HSBC Asset Management Launches Climate Tech ETF in Europe

HSBC Asset Management Launches Climate Tech ETF in Europe

The fund will use an ESG screener.

etf
|
Reviewed by: etf.com Staff
,
Edited by: Mark Nacinovich

HSBC Asset Management has expanded its range of thematic ETFs with the launch of a global climate technology strategy, ETF Stream can reveal.

The HSBC NASDAQ Global Climate Tech UCITS ETF (HNCT) is listed on the London Stock Exchange with a total expense ratio of 0.50%.

HNCT will also be listed on the Deutsche Boerse and Borsa Italiana at a later date.

The fund tracks the Nasdaq CTA Global Climate Technology index, which selects stocks based on three classifications by the Consumer Technology Association.

The classifications comprise enablers, those developing the core technology to facilitate the green transition; engagers, those with tangible products and technology within climate tech; and enhancers, companies that service existing technologies in the climate transition.

Within this, companies will be selected from five subcategories, power sources and storage, climate infrastructure, agriculture, adaptation and transportation.

Following this, the index will use several factors including market capitalization, revenue, market share, patents and product launches to select the final index.

ESG Screener

It will also use an ESG, or environmental, social and governance, screening methodology to exclude companies with material involvement in thermal coal, oil and gas and controversial weapons, as well as United Nations Global Compact violators.

The exchange-traded fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation.

 “Scalable technology solutions have a significant part to play in addressing some of the challenges associated with climate change and we believe thematic ETFs present an exciting way for investors to build climate tech exposure into their portfolios and access this crucial theme,” Olga de Tapia, global head of ETF and indexing sales at HSBC Asset Management, said:

Last month, the asset manager expanded its Shariah-compliant range of ETFs, with the launch of The HSBC MSCI Japan Islamic ESG UCITS ETF (HIJP) and the HSBC FTSE EPRA Nareit Developed Islamic UCITS ETF (HINS).

It follows the launch of Europe’s first global sukuk ETF earlier in September.

Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and retail investments, most recently at Citywire, where he was a senior reporter covering environmental, social and governance investing.