HSBC Multi Factor Worldwide Equity UCITS ETF

Investment rationale

The fund aims to provide long-term capital growth through global equity investing and may suit investors seeking capital appreciation over a five-year time horizon. It is designed for investors willing to accept high day-to-day market fluctuations and prepared to bear losses, and it has a summary risk indicator of 4 out of 7. With at least 90% invested in shares of companies of any size worldwide, including emerging markets, it can serve as a broad global equity allocation. Its distinct feature is an actively managed multi-factor approach using Value, Quality, Momentum, Low Risk and Size rather than market-cap weighting.

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How the strategy works

The objective is to provide long-term capital growth. In normal market conditions, the fund invests at least 90% of assets in shares of companies of any size based anywhere in the world, including emerging markets, and may invest in China A-shares through the Shanghai-Hong Kong and/or Shenzhen-Hong Kong Stock Connect, through CAAPs or through funds. It may invest up to 10% in other funds, including other HSBC funds, and up to 10% in total return swaps and contracts for difference; derivatives may also be used for efficient portfolio management and investment purposes, and securities lending may be used up to 30% of assets, though this is not expected to exceed 25%. The fund is actively managed and does not track a benchmark; MSCI All Country World Index / MSCI AC World Net is the reference benchmark used when selecting investments and for performance comparison, while portfolio weights may deviate materially from the benchmark. The share class is USD, income is distributed quarterly, and the recommended holding period is five years.

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Investment philosophy

• The investment universe is drawn from the MSCI All Country World Index and consists of shares of companies of any size based anywhere in the world, including emerging markets.

• The Investment Manager ranks stocks from least attractive to most attractive using factor criteria including Value, Quality, Momentum, Low Risk and Size.

• The portfolio is then built quantitatively to maximise exposure to the highest-ranked stocks while minimising risk characteristics through constraints such as sector and company weights.

• As at 31 August 2026, the fund held 413 positions excluding cash; the largest holdings were Apple, NVIDIA, Microsoft, Alphabet, Taiwan Semiconductor, Amazon, Micron Technology, Samsung Electronics, Broadcom and SK hynix.

• Positioning as of 31 August 2026 showed the largest sector weights in Information Technology at 33.99%, Financials at 19.42% and Industrials at 11.11%, and the largest geographic exposure in the United States at 61.16%, followed by Canada at 4.00%, the United Kingdom at 3.97% and Japan at 3.90%.

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Distinctive features

The fund is distinguished by its global multi-factor equity approach, with stock selection explicitly based on Value, Quality, Momentum, Low Risk and Size. It is actively managed but built from the MSCI AC World universe, combining broad worldwide equity exposure with material freedom to deviate from benchmark weights. As of 31 August 2026 the portfolio held 413 securities, while still expressing clear convictions through concentrated exposure to major technology names such as Apple, NVIDIA and Microsoft. The ongoing charge figure is 0.250%, and the ETF structure is supported by listings on multiple exchanges and currencies including London, Xetra, SIX Swiss Exchange and Borsa Italiana.

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Risks

The fund has a summary risk indicator of 4 out of 7, a medium risk class, and it does not include protection from future market performance, so investors could lose some or all of their investment. Market risk can arise from movements in investible securities driven by political and economic news, government policy, demographic and cultural changes, and natural or human-caused disasters. Currency risk is present because overseas investments are held and exchange-rate movements can reduce value, and investors may receive payments in a different currency. Additional risks include liquidity, counterparty, operational, investment leverage and exchange rate risk, while derivatives, total return swaps, contracts for difference and securities lending can add leverage and cause pricing and volatility to diverge from underlying assets. The fund’s global equity exposure, including emerging markets and China A-shares, also contributes to its overall risk profile.

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Asset manager

The fund manager is HSBC Global Asset Management (UK) Limited. The management company is HSBC Investment Funds (Luxembourg) S.A., and HSBC Asset Management is the brand name for the asset management business of HSBC Group. The issuer is HSBC ETFs PLC, the fund is domiciled in Ireland, and the custodian/depositary is HSBC Continental Europe. HSBC Securities Services (Ireland) DAC is the fund administrator.

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