HSBC Global Asset Management has launched a new ETF that focuses on investments in Saudi Arabia.
The HSBC MSCI Saudi Arabia 20/35 Capped Ucits ETF is listed on the London Stock Exchange and further listings are planned in other European markets.
The group said the launch was in response to client demand for Saudi Arabian securities following MSCI’s decision to include the Kingdom into its emerging markets index, in a two-step process taking place in May and August this year.
The new ETF is designed to replicate the performance of the MSCI Saudi Arabia 20/35 Capped Index, which tracks the Saudi Arabia shares included in the MSCI Emerging Markets Index.
Olga De Tapia, head of EMEA ETFs sales at HSBC Global Asset Management, said: “Saudi Arabia is a market that is increasingly relevant to global investors as it makes further progress in its evolution to becoming an international capital markets hub.”
The ETF has estimated ongoing charges figures of 0.50% and dividends will be paid to investors on a quarterly basis.