HSBC Global Asset Management has halved the fee on its China ETF in a move that will increase the competitiveness of the strategy.
The HSBC MSCI China UCITS ETF (HMCH) has seen its total expense ratio (TER) cut from 0.60% to 0.30%, a significant decrease for investors.
HMCH is one of the firm’s most successful ETFs. Having launched 10 years ago in January 2011, it currently has $683m assets under management (AUM).
The fee cut brings HMCH in line with its competitors. The cheapest China ETF on the European market is the $78m Franklin FTSE China UCITS ETF (FLXC) which has a TER of 0.19%.
The cheapest ETF in Europe tracking the MSCI China index is the $131m Lyxor MSCI China UCITS ETF (LCCN) which is one basis point cheaper than HMCH at 0.29%.
Commenting on the fee cut, Olga de Tapia (pictured), global head of ETF sales at HSBC GAM, told ETF Stream: “China’s prominence in the global economy continues to grow and we have halved the TER of HMCH to further facilitate investor participation in this important economic growth story.”
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HMCH offers investors exposure to 714 Chinese large and mid-cap companies including tech giants Alibaba and Tencent.
The index currently has 55.1% exposure to China H-Shares, 31.8% to ADRs and 12.4% to the A-Shares segment of the market.
