HSBC, Dimensional Add SRI-Themed ETFs

Dimensional Fund Advisors is to launch a quartet of new sustainability-focused exchange-traded funds (ETFs).

The company has filed a preliminary registration statement with the Securities and Exchange Commission (SEC) for four new products, which aim to pursue lower emissions exposure across US, developed international, and emerging market equities, as well as global fixed income.

Dave Butler, co-CEO of Dimensional, said: “The new ETFs build on Dimensional’s experience in managing sustainability strategies in mutual funds and separate accounts over the past decade.”

The four funds are: Dimensional US Sustainability Core 1 ETF, Dimensional International Sustainability Core 1 ETF, Dimensional Emerging Markets Sustainability Core 1 ETF, and Dimensional Global Sustainability Fixed Income ETF.

Once launched, these new funds will join Dimensional’s line-up of 20 ETFs, which currently hold $48 billion between them in assets under management.

Separately, HSBC Asset Management (HSBC AM) has launched two ETFs designed to help investors integrate net zero considerations into their investment portfolios.

The HSBC MSCI Emerging Markets Climate Paris Aligned UCTIS ETF and HSBC MSCI AC Asia-Pacific ex-Japan Climate Paris Aligned UCITS ETF are additions to the company’s existing Paris-Aligned Benchmark (PAB) equity ETF range.

The funds track the MSCI Emerging Markets Climate Paris-Aligned Benchmark index and the MSCI AC Asia Pacific ex Japan Climate Paris-Aligned Benchmark index, respectively.

Olga de Tapia, global head of ETF and indexing sales at HSBC AM, said the company was prioritizing helping clients “improve the social and environmental impact of their portfolios”.

There was $378 billion invested in ESG-themed ETFs globally at the end of February, according to Statista.