A press release titled, "HSBC Asset Management Launches First ETF Share Classes for EU-Regulated Money Market Funds," tells us, "HSBC Asset Management ... announces the launch of new ETF share classes for its existing HSBC Sterling Liquidity and HSBC Euro Liquidity Funds, offering investors an alternative and accessible way to manage cash holdings. The launch builds on HSBC AM's move in 2023 to provide investors with access to both listed and unlisted share classes within a single fund. The development marks the first time an asset manager in Europe has launched ETF share classes within existing EU-regulated Money Market Funds (MMFs)." HSBC is the 5th largest manager of European money funds with $123.4 billion, according to Crane Data's MFI International. (Note: There's still time to register for our "basic training" event, Money Fund University, which takes place Dec. 18-19 in Pittsburgh, Pa.!)
It continues, "The newly launched ETF share classes aim to provide investors with access to the security of capital and daily liquidity, along with a potential investment return comparable to standard money-market interest rates, by actively managing credit, liquidity, and interest rate risks. In addition, they aim to allow investors to access large triple-A-rated money market funds through ETF share classes, benefitting from HSBC AM's long-standing expertise within the liquidity space, with its first funds launched in 1999."
HSBC explains, "These ETF share classes are also expected to be the first ETFs in Europe that qualify as Low Volatility Net Asset Value (LVNAV) Money Market Funds under the strict requirements of the EU MMF Regulation. Investor appetite for accessible, low-risk cash-management solutions continues to grow, particularly among institutional allocators seeking flexibility and transparency."
They state, "The ETF share classes sit within UCITS funds classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). The ETF share classes are also primarily aimed at wholesale and institutional investors, including fund of funds, private banks, pension funds, insurance and family offices, who require efficient, flexible and transparent cash-management solutions within their portfolios."
The release adds, "They will be registered and available to wholesale and institutional investors across key European markets including the UK, Germany, Italy, France, Ireland and Luxembourg, and listed on the London Stock Exchange, Borsa Italiana and Xetra. HSBC AM manages over USD 170bn in liquidity assets across 10 currencies globally, providing investors with access to well-established, actively managed money-market solutions built on more than 30 years of experience."
Olga De Tapia, Global Head of ETF & Indexing Sales at HSBC Asset Management comments, "As investors increasingly look for greater opportunities in cash and ultra-short-term duration solutions, we are pleased to launch ETF share classes of our existing liquidity funds. This aims to provide investors with more choice and access to our longstanding expertise in the liquidity space through the simplicity of a UCITS ETF wrapper."
HSBC AM's Global CIO of Liquidity, Jonathan Curry, states, "Building on our robust, well-established active investment process and experience managing money market funds through numerous market cycles, these new launches are designed to give investors peace of mind when looking for a tool to manage their cash and help them to deliver on their objectives of preservation of capital and provision of liquidity. This launch reflects our continued commitment to innovation in liquidity management and to broadening investor access to money-market solutions through listed formats."
We first learned of the news from website ETF Stream, who published, "HSBC launches ETF share classes on $51bn money market duo." The piece says, "HSBC Asset Management has rolled out ETF share classes for its $29.5bn euro money market fund and $21.8bn sterling money market fund in the latest example of the firm utilising listed and unlisted share classes. The HSBC Sterling Liquidity Fund UCITS ETF (HGBP) is listed on the London Stock Exchange, while the HSBC Euro Liquidity Fund UCITS ETF (HEUR) is listed on Deutsche Borse and Borsa Italiana. Both ETFs carry total expense ratios (TERs) of 0.10%."
It also states, "HSBC AM became the first ETF issuer to create listed and unlisted share classes in Ireland after it converted four global bond index funds to ETFs in April 2023. It has since listed four ETF shares classes of its $12bn global aggregate bond ETF. Its new ETF share class launches are the first to be introduced ETF within existing EU-regulated money market funds."
Their article adds, "They come amid rising demand for cash-focused strategies. Active money market ETFs have multiplied this year, with Amundi introducing the Amundi EUR Cash Active UCITS ETF (CMMF) last week and BlackRock listing the iShares € Cash UCITS ETF (YCSH) late last year. Appetite for cash-like exposures remains strong, with overnight rate ETFs such as the Xtrackers EUR Overnight Rate Swap UCITS ETF (XEON) amassing $5.3bn inflows so far this year, according to data from Trackinsight. In October 2024, the Central Bank of Ireland (CBI) changed its naming convention, enabling issuers to launch listed share classes within mutual funds without the having to include the 'UCITS ETF' moniker at the overall sub-fund level."
For more on Money Market ETFs, see these Crane Data News stories: "Nov. MFI: State Street ETF; BNY on MM Evolution; BlackRock Breaks $1T" (11/7/25), "State Street Files for Prime Money Market ETF; 7th MM ETF, 2nd Prime" (11/4/25), "Barron's on Money-Market ETFs; JPMorgan Says MF Assets Headed Higher" (10/20/25), "JPMorgan Files for Money Market ETF" (7/10/25), "BlackRock Money Market ETFs Go Live; Ondo Finance on Tokenized MMFs" (2/6/25), "VettaFi Discusses Money Market ETFs" (12/11/24), "Dec. MFI: Assets Break $7.0 Tril; Top 10 of 2024; BlackRock MM ETFs" (12/6/24), "BlackRock Debuts First Euro MM ETF" (12/5/24), "FT on BlackRock Money Market ETFs" (11/18/24), "November BFI: Bond Funds Hit by Election; ETF Trends MM Substitutes" (11/15/24), "BlackRock Files for Money Market ETFs" (11/12/24) and "Texas Capital Launches Govt MM ETF" (9/26/24).
