HSBC Asset Management has launched five new Islamic ESG ETFs.

The funds will be classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR). The new funds are:

HSBC MSCI USA Islamic ESG UCITS ETF
HSBC MSCI World Islamic ESG UCITS ETF
HSBC MSCI Europe Islamic ESG UCITS ETF
HSBC MSCI Emerging Markets Islamic ESG UCITS ETF
HSBC MSCI AC Asia Pacific ex Japan Islamic ESG UCITS ETF

The index screening methodology first applies a set of Shariah exclusions (e.g. alcohol, gambling & pork related products). This Islamic screen has two levels, financial screening and business activity screening, to ensure compliance with Shariah investment principles. This is followed by a set of norms-based exclusions via a Socially Responsible Investment (SRI) screen (e.g. nuclear weapons & producers of firearms).

The ETFs aim to track their respective MSCI Islamic Universal Screened indices.