HSBC has launched its first European exchange traded fund (EFT), the HSBC FTSE 100 ETF. Listed on the London Stock Exchange, the ETF (ticker: HUKX) is designed to track the performance of the FTSE 100 index.

The ETF, domiciled in Ireland, is registered for sale in the UK and a number of additional registrations are planned across Europe.

HSBC Global Asset Management will be the investment manager with HSBC Global Markets as market maker. The total expense ratio will be 0.35%.

ETFs represent around 2% of the European mutual fund market compared with 6% in the US. "ETFs are one of the fastest-growing areas in the investment management industry and we aim to be among the leading providers within a few years," said Samir Assaf, head of global markets at HSBC.

In Asia, through majority owned by HSBC Hang Seng Bank and HSBC Global Asset Management in Hong Kong, the two together have almost an 8% market share of the regional ETF assets under management. On August 14, 2009, Hang Seng Bank's ETFs became the first Hong Kong-listed funds to also be listed in Taiwan.

Globally HSBC is an established provider of services to the ETF industry, principally as a custodian and market maker.

HSBC said it plans to extend its ETF business across Asia, Latin America and the Middle East.