HSBC PLUS Emerging Markets Equity Quantitative Active UCITS ETF USD Acc

Issuer: HSBC

Asset Class: Equity

TER: 35bps

Trading Currency: GBP

Pays Income: False

Listing Date: 22 Aug 2025

Ticker: HQES

ISIN: IE000UERNJ93

This financial product offers actively managed exposure to a broad range of emerging market equities, aiming to achieve long-term capital appreciation. It is designed for investors seeking to potentially outperform traditional passive emerging market strategies by leveraging a sophisticated, quantitative investment process. The approach is systematic and rules-based, aiming to remove human emotional bias from stock selection and instead focus on data-driven insights to navigate the complexities and opportunities presented within these dynamic economies. The portfolio is constructed to provide a diversified entry point into the growth potential of developing nations.

The core of the investment strategy is a multi-factor quantitative model. This proprietary model analyzes a vast universe of emerging market stocks, screening for specific, well-documented characteristics historically associated with higher returns. These factors include value, identifying companies that appear undervalued relative to their fundamentals; quality, focusing on financially sound businesses with stable earnings; momentum, targeting stocks with strong recent performance trends; and low risk, selecting securities that have exhibited lower volatility. By systematically combining these distinct factors, the portfolio aims to achieve a more consistent and potentially superior risk-adjusted performance profile compared to a standard market-cap-weighted index.

This product provides a compelling option for those who believe that inefficiencies within emerging markets can be exploited through a disciplined methodology. The diversified nature of the portfolio helps to mitigate single-country or single-sector risk, while the accumulating share class structure ensures that all dividends are automatically reinvested to enhance the power of compounding over time. This makes it a suitable core holding for investors looking to add a professionally managed, growth-oriented emerging markets component to their long-term investment portfolio.