HSBC Global Asset Management has expanded its low carbon product offering with the launch of a developed world ETF.

The HSBC Developed World Sustainable Equity UCITS ETF (HSWD) is listed on the London Stock Exchange with a total expense ratio of 0.18%.

The listing comes a month after HSBC GAM launched its low carbon ETF range which initially included three ETFs offering exposure to Europe, Japan and USA equities.

HSWD tracks the FTSE Developed ESG Low Carbon Select Net Tax Index.

This seeks to target a 50% carbon emissions reduction and a 50% fossil fuel cut relative to the parent index.

Furthermore, HSWD’s benchmark aims for a 20% ESG score uplift compared it its parent index and incorporates a custom exclusion list based on the United Nations Global Compact Principles.

HSBC GAM to launch 8 ESG ETFs and hire 15 staff in H1

Commenting on the launch of the low carb ETF range, Olga De Tapia (pictured), global head of ETF sales at HSBC GAM, said: “This three-tilt approach allows us to capture the benefits of positive inclusion and access companies that are transitioning towards a low carbon economy.

“Due to the evolution of the energy industry, the indices aim to capture stocks with lower fossil fuel reserves intensity, including alternative energy companies.”

HSBC GAM says it is planning to expand the range further in the coming weeks with exposures to the emerging markets and Asia-Pacific ex Japan.

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