Fund in Focus: HSBC Japan Index

Gold-rated HSBC Japan Index fund is one of the very best trackers in a category in which passive funds have performed well

Kenneth Lamont 19 March, 2019 | 12:02PM

Mount Fuji, Japan

HSBC Japan Index fund is one of the very best trackers in a category in which passive funds have performed well. The fund offers broad and representative cap-weighted exposure to Japanese large-cap equities. With around 500 constituents, including a number of mid-caps and small caps, the FTSE Japan Index stands as a better proposition than the more popular but narrower MSCI Japan Index. With an ongoing charge of only 0.21%, the clean share class of the fund is one of the cheapest in the Japan large-cap Morningstar Category.

The yawning fee gap between this fund and that charged by the average fund in the category has proved to be a formidable hurdle for active managers. The low fee, coupled with an underperformance of active managers, has seen the fund clearly outshine its surviving category peers over three, five, and 10 years when ranked on a risk-adjusted basis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
HSBC Japan Index C Acc1.28 GBP0.14

About Author

Kenneth Lamont  is a passive funds research analyst for Morningstar Europe.

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