HSBC to launch swap-based ETFs

The bank currently offers 11 ETFs on exchanges across Europe, all of which physically replicate the respective underlying index. However, HSBC head of ETFs Farley Thomas says there are certain indices that cannot be replicated unless via swaps. He says iShares' recent launch of swap-based ETFs confirms it is hard, if not impossible, to track certain indices on a physical basis and this extends beyond emerging markets equities to certain fixed income indices, as well as other asset classes such as commodities. He says: "Launching the swap-based model will give us the option to signi...