HSBC Multi-Factor Emerging Markets Equity UCITS ETF

Issuer: HSBC

Asset Class: Equity

TER: 35

Trading Currency: USD

Pays Income: False

Listing Date: 23 Jan 2026

Ticker: HQEI

ISIN: IE000RN4ORI2

This actively managed fund offers exposure to a diversified portfolio of equities from companies based in emerging markets. Its primary objective is to deliver long-term capital growth by outperforming the broader MSCI Emerging Markets Index. Unlike traditional actively managed funds that rely on discretionary stock picking, this product employs a sophisticated, rules-based quantitative strategy to construct its portfolio, aiming to deliver a more systematic and consistent approach to generating excess returns.

The investment process is driven by a proprietary multi-factor model that systematically analyzes and selects securities. This model focuses on identifying companies that exhibit strong characteristics across several academically-backed investment factors, such as value, quality, momentum, and low volatility. By combining these factors, the strategy seeks to build a robust and diversified portfolio that avoids emotional decision-making and aims for enhanced risk-adjusted performance over a full market cycle. The portfolio holds a broad range of companies across various sectors and countries within the emerging markets universe.

This product is designed for investors seeking to enhance their allocation to emerging economies with the potential for returns above that of a standard passive index fund. It is suitable for those with a long-term investment horizon who are comfortable with the inherent risks of emerging market equities and the specific risk that a factor-based strategy may underperform its benchmark at times. As an accumulating fund, any dividend income is automatically reinvested, which is highly beneficial for compounding returns and simplifying portfolio management for growth-focused investors.