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HSBC S&P India Tech UCITS ETF
The forefront of a digitally empowered India
The new era of digitalisation in India
India offers appealing investment opportunities, especially within the technology sector. Given the large pool of skilled IT professionals and increasing digital adoption within its vast tech-savvy population, the market is set for continued growth.
India's government has launched initiatives such as 'Digital India' to promote digitalisation, ‘Make in India’ to promote domestic manufacturing and 'India Stack' to provide digital infrastructure that can be universally accessed and utilised.
Old and new world tech thematic exposure
The Fund tracks the S&P India Tech Index which uses an alternative company classification known as Revere Business Industry Classifications (RBICS) to identify companies associated with the “Technology” theme. This provides investors exposure to an index that is broadly focused on Indian companies that are Technology focused but may have been excluded by the traditional GICS or ICB classification systems – capturing a range of old and new world tech companies operating across industries.
A diversified index which includes companies engaged in broader tech related activities
Source: S&P Dow Jones Indices as at February 2024. For illustrative purposes only. For a detailed list of eligible business activities please refer to the S&P Thematic Indices Methodology
The commentary and analysis presented in this document reflect the opinion of HSBC Asset Management on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Asset Management. Consequently, HSBC Asset Management will not be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document. Overview of the general strategy, which may differ depending on market conditions.
HSBC S&P India TECH UCITS ETF
HSBC S&P India Tech UCITS ETF
Key risks
The value of an investment in the portfolios and any income from them can go down as well as up and as with any investment you may not receive back the amount originally invested.
- Counterparty Risk: The possibility that the counterparty to a transaction may be unwilling or unable to meet its obligations
- Derivatives Risk: Derivatives can behave unexpectedly. The pricing and volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their underlying reference(s), instrument or asset
- Exchange Rate Risk: Changes in currency exchange rates could reduce or increase investment gains or investment losses, in some cases significantly
- Index Tracking Risk: To the extent that the Fund seeks to replicate index performance by holding individual securities, there is no guarantee that its composition or performance will exactly match that of the target index at any given time (“tracking error”)
- Investment Leverage Risk: Investment Leverage occurs when the economic exposure is greater than the amount invested, such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source
- Liquidity Risk: Liquidity Risk is the risk that a Fund may encounter difficulties meeting its obligations in respect of financial liabilities that are settled by delivering cash or other financial assets, thereby compromising existing or remaining investors
- Operational Risk: Operational risks may subject the Fund to errors affecting transactions, valuation, accounting, and financial reporting, among other things
Further information on the potential risks can be found in the Key Investor Information Document (KIID) and/or the Prospectus of Offering Memorandum.
Any views expressed were held at the time of preparation and are subject to change without notice. Any forecast, projection or target where provided is indicative only and not guaranteed in any way. HSBC Global Asset Management (UK) Limited accepts no liability for any failure to meet such forecast, projection or target.
Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by HSBC Global Asset Management Limited. The S&P India Tech Index (“Index”) is a product of S&P Dow Jones Indices LLC, and has been licensed for use by HSBC Global Asset Management Limited. This fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates make any representation regarding the advisability of investing in such product(s).
Risk Warning
Index-based Investing - 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. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Stock market investments should be viewed as a medium to long term investment and should be held for at least five years. Any performance information shown refers to the past and should not be seen as an indication of future returns.