HSBC launches South Africa ETF on LSE

The fund, as with all ETFs in HSBC's current line-up, uses physical replication to track its underling index, a cap-weighted measure of 85% of the South African equity market. The domestic stock market is heavily weighted towards materials and financials, and to a lesser extent the consumer discretionary and telecommunications sectors. South Africa was recently invited to join the BRIC group of countries in a formal letter from the Chinese government. HSBC head of ETFs Farley Thomas says the country presents a potentially high growth story. "South Africa is one of the bigger economi...