The announcement came just one day after Amundi launched a range of ETFs with exposure to emerging makets, through both the individual countries’ MSCI indices and the region’s MSCI index.
HSBC said it aimed to offer investors the total return performance of the MSCI emerging markets ETF, while minimising as far as possible the tracking error between the fund’s performance and that of the index.
The fund will use physical replication in tracking its index, in keeping with the rest of HSBC’s ETFs.
As an investment house HSBC has $139bn invested in emerging markets.
Farley Thomas, head of ETFs at HSBC, said: "MSCI emerging markets is an iconic index for tracking emerging markets worldwide, this fund offers extremely good value, as well as exposure to the total-return performance of the index net of fees."
The 0.60% TER is on the lower end of the charges spectrum in the area, but the funds launched by Amundi yesterday have TERs of between 0.45% and 0.55%.
HSBC’s MSCI Emerging markets ETF is listed on the London Stock Exchange in sterling and US dollar, it has UK reporting status.
