Key risks

The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.

  • Exchange Rate risk: Investing in assets denominated in a currency other than that of the investor’s own currency perspective exposes the value of the investment to exchange rate fluctuations.

  • Derivative risk: The value of derivative contracts is dependent upon the performance of an underlying asset. A small movement in the value of the underlying can cause a large movement in the value of the derivative. Unlike exchange traded derivatives, over-the-counter (OTC) derivatives have credit risk associated with the counterparty or institution facilitating the trade.

  • Index Tracking risk: The performance of the Fund may not match the performance of the index it tracks because of fees and expenses, market opening times and regulatory constraints.

  • Operational risk: The main risks are related to systems and process failures. Investment processes are overseen by independent risk functions which are subject to independent audit and supervised by regulators.

  • Liquidity risk: Liquidity is a measure of how easily an investment can be converted to cash without a loss of capital and/or income in the process. The value of assets may be significantly impacted by liquidity risk during adverse market conditions.

  • Emerging Market risk: Emerging economies typically exhibit higher levels of investment risk. Markets are not always well regulated or efficient and investments can be affected by reduced liquidity.

  • Focused Strategy risk: Funds with a narrow or concentrated investment strategy may experience higher risk and return volatility and lower liquidity than funds with amore diversified approach.

Important information

The HSBC ETF fund range are sub-funds of HSBC ETFs plc (the Company), an investment company with variable capital and segregated liability between sub-funds, incorporated in Ireland as a public limited company, which is authorised by the Central Bank of Ireland. The Company is constituted as an umbrella fund, with segregated liability between sub-funds.

UK based investors in HSBC ETFs plc are advised that they may not be afforded some of the protections conveyed by the Financial Services and Markets Act (2000) (the Act).

The Company is recognised in the United Kingdom by the Financial Conduct Authority under section 264 of the Act. The shares in HSBC ETFs plc have not been and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons.

Affiliated companies of HSBC Global Asset Management (UK) Limited may make markets in HSBC ETFs plc.

HSBC Global Asset Management (UK) Limited provides information to Institutions, Professional Advisers and their clients on the investment products and services of the HSBC Group.

Investors and potential investors should read the relevant Key Investor Information Document (KIID), full Prospectus and Supplement for a full list of risk warnings prior to making a decision to invest.


Professional support

E-mail: wholesale.clientservices@hsbc.com

*To help us continually improve our service and in the interest of security, we may monitor and/or record your telephone calls with us

ETF Literature