HSBC USA Screened Equity UCITS ETF

The HSBC USA Screened Equity UCITS ETF is an exchange-traded fund that seeks to replicate the performance of the FTSE USA ESG Low Carbon Select Index through physical, full replication. This ETF primarily invests in large and mid-cap equities in the United States, with a strong focus on firms that demonstrate superior environmental, social, and governance (ESG) standards and reduced carbon emissions. The underlying index is designed to cut carbon emissions and fossil fuel consumption by half, while improving overall ESG ratings by at least 20 percent relative to the parent FTSE USA Index. The fund systematically excludes companies engaged in weapons, thermal coal, tobacco, nuclear power, and those violating the UN Global Compact principles. Comprising over 400 holdings and heavily weighted towards the technology sector, its top constituents include prominent U.S. companies such as NVIDIA, Apple, and Microsoft, representing a significant share of the portfolio. The ETF features an accumulating distribution policy, which means all dividends are reinvested, and it charges a low total expense ratio of 0.12% per annum. Its structure as a UCITS-compliant product domiciled in Ireland ensures a high regulatory standard and investor protection. The fund serves investors seeking broad U.S. equity exposure with an integrated ESG and low-carbon approach, making it a significant instrument in sustainable investment strategies.