HSBC launches Japan ETF

HSBC is set to launch its Japanese equity ETF tomorrow, tracking the MSCI Japan index.

Initially listed on the London Stock Exchange, it will fully replicate the index by holding all the index constituents, at a total expense ratio of 0.4%.

MSCI Japan is the latest in a range of ETFs unveiled by HSBC, following the launch of the FTSE 100 ETF in August 2009 and the subsequent Dow Jones Eurostoxx 50 and Cac 40 ETFs.

HSBC head of ETFs Farley Thomas says: "Our latest ETF is a low-cost route to accessing the Japanese equity market compared not only with actively managed funds but also compared to other ETFs available in Europe."

He says: "In terms of demand, Japanese equity funds have seen over 10 weeks of consecutive inflows, the strongest start to the year for the Japanese equity fund sector globally since 2006. There are also significant assets already invested. For example, £6.7bn is currently held in Japanese equity funds by UK investors alone."

He adds: "We believe ETFs and index funds in general will take a bigger share of such flows and assets over the next few years."