As the demand for semiconductors continues to surge, HSBC Asset Management (HSBC AM) launched the HSBC Nasdaq Global Semiconductor UCITS ETF, providing investors with a new investment vehicle to tap into this rapidly developing space. The fund began trading on the London Stock Exchange on Jan. 27, 2022, and further listings are expected in Europe in the coming weeks.
The demand for semiconductors has been growing amid the rise of new technologies – from 5G and streaming to artificial intelligence and advanced driver assistance systems. The new ETF aims to replicate the performance of the Nasdaq Global Semiconductor Index (GSOX), which is comprised of the 80 largest global semiconductor companies that supply chips to the automotive, wireless communications, computing and consumer sectors. The fund will invest in the constituents of the index largely in the same proportions in which they are included.
"Semiconductors are key for the future of many technology-based industries and are also expected to play an important role in the transition to net-zero through enabling clean technologies," said Olga de Tapia, Global Head of ETF & Indexing Sales at HSBC AM."We feel that this addition to our tech thematic product suite captures a long-running secular trend, which sits at the heart of the digital revolution."
HSBC AM has seen tremendous growth in its ETF, index and systematic funds, accelerated by the launch of new strategies responding to increasing investor demand for specific solutions, such as sustainable fixed income ETFs, as well as a range of sustainable and Paris-aligned equity ETFs. HSBCNasdaq Global Semiconductor UCITS ETF marks the latest product for HSBC AM.
"Semiconductors are essential to many aspects of modern society with increasing importance for rapidly evolving technologies. Leveraging our rules-based and transparent indexes, we are pleased to partner with HSBC AM, bringing investment products that enable investors to gain meaningful exposure to these pioneering companies that are reshaping the world economy," said Cameron Lilja, Vice President and Head of Index Research and Development at Nasdaq.
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