HSBC Emerging Market Sustainable Equity UCITS ETF

Sustainably Invested MX-PE HSBC ETFs PLC - HSBC Emerging Market Sustainable Equity UCITS ETF

HSEF LN Aug 31 2021 Fund IE00BKY59G90 Aug 31 2021 Fund Objective and Strategy Investment Objective

The Fund aims to track as closely as possible the returns of the FTSE Emerging ESG Low Carbon Select Index (the “Index”). The Fund will invest in or gain exposure to shares of companies which make up the Index.

Investment Policy

The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure, improvement of the FTSE Russell ESG rating and also applies the United Nations Global Compact exclusionary criteria.The Fund will be passively managed and will aim to invest in the shares of the companies in generally the same proportion as in the Index. However, there may be circumstances when it is not possible or practical for the Fund to invest in all constituents of the Index. The Fund can gain exposure by using other investments such as depositary receipts, derivatives or funds.The Fund may invest up to 35% in securities from a single issuer during exceptional market conditions.The Fund may invest up to 10% in funds and up to 10% in total return swaps and contracts for difference.See the Prospectus for a full description of the investment objectives and derivative usage.

Since Inception Performance (%) Fund Details UCITS V Compliant Yes 130 Fund Reference Benchmark 125 Distribution Type Accumulating 120 2 115 Ongoing Charge Figure 0.180% 110 105 Share Class Base Currency USD 100 95 90 Domicile Ireland ISIN IE00BKY59G90

Share Class Inception Date Aug 27 2020

NAV per Share USD 16.04 Performance (%) YTD 1M 3M 1Y 3Y¹ 5Y¹ Since Inception¹ Shares Outstanding 7,125,000 Fund 4.31 4.00 -2.35 19.00 - - 18.83 Fund Size USD 114,291,115 Reference Benchmark 4.70 4.16 -2.06 20.05 - - 19.87 HSBC Index and Systematic Equity Manager Tracking Difference -0.40 -0.17 -0.30 -1.05 - - -1.04 Portfolio Management Team Tracking Error - - - 0.69 - - 0.69 Replication Method Physical- Full SIPP Eligible Yes Issuer HSBC ETFs PLC Rolling Performance Aug 31 2020- Aug 31 2019- Aug 31 2018- Aug 31 2017- Aug 31 2016- Custodian HSBC Continental Europe (%) Aug 31 2021 Aug 31 2020 Aug 31 2019 Aug 31 2018 Aug 31 2017 HSBC Securities Services Fund Administrator Fund 19.00 - - - - (Ireland) DAC Reference Benchmark 20.05 - - - - Listing Date Aug 28 2020 Past performance is not an indicator of future returns. The figures are calculated in the Fiscal Year End 31-Dec share class base currency, dividend reinvested, net of fees. Source: HSBC Global Asset Management, data as at August 31 2021 Reference Benchmark Information JP Morgan ACI Sovereign (Indonesia, Mongolia, Pakistan, Index Name Philippines, Sri Lanka and Risk Disclosure Vietnam only) • The Fund's unit value can go up as well as down, and any capital invested in the Fund may be at Index Currency USD risk. • The value of investible securities can change over time due to a wide variety of factors, including Benchmark Type but not limited to: political and economic news, government policy, changes in demographics, Total Return Net cultures and populations, natural or human-caused disasters etc. • The Fund may invest in Emerging Markets, these markets are less established, and often more Index Rebalancing Frequency Annually volatile, than developed markets and involve higher risks, particularly market, liquidity and currency risks. TR Index Bloomberg ticker ELCAWEN • To the extent that the Fund seeks to replicate index performance by holding individual securities, TR Index Reuters RIC there is no guarantee that its composition or performance will exactly match that of the target index .TFTELCAWENU at any given time (“tracking error”). • Derivatives may be used by the Fund, and these can behave unexpectedly. The pricing and 1Result is annualised when calculation period is over one year. volatility of many derivatives may diverge from strictly reflecting the pricing or volatility of their 2Ongoing Charges Figure, is based on expenses over a year. The underlying reference(s), instrument or asset. figure includes annual management charge but not the transaction • Investment Leverage occurs when the economic exposure is greater than the amount invested, costs. Such figures may vary from time to time. such as when derivatives are used. A Fund that employs leverage may experience greater gains and/or losses due to the amplification effect from a movement in the price of the reference source. • Further information on the Fund's potential risks can be found in the Key Investor Information Document and Prospectus. Sector Allocation (%) Geographical Allocation (%) Technology 31.53 Mainland China 35.87 Financials 27.56 Taiwan 18.78 Consumer Discretionary 10.65 India 12.70 Energy 5.44 Brazil 5.63 Basic Materials 5.14 South Africa 5.05 Consumer Staples 4.32 Russian Federation 3.64 Telecommunications 3.86 Mexico 2.63 Industrials 3.46 Thailand 2.51 Health Care 3.28 Saudi Arabia 2.32 Real Estate 1.69 Malaysia 2.02 Utilities 1.61 Other Locations 7.39 Cash & Others 1.46 Cash & Others 1.46

Top 10 Holdings (%) Characteristics Fund Reference Benchmark Taiwan Semiconductor Co Ltd 11.65 Number of Holdings ex Cash 960 - Tencent Holdings Ltd 7.68 Avg Market Cap (USD mil) 158,856 158,707 Infosys Ltd 3.56 P/E Ratio 3 16.69 16.74 Alibaba Group Holding Ltd 2.28 China Construction Bank-H 2.26 Meituan-Class B 1.97 Itau Unibanco Holding SA 1.94 ICBC 1.25 Reliance Industries Ltd 1.21 Ping An Insurance Group Co-H 1.03 3Price Earnings (P/E) Ratio: the price paid for a share divided by the annual profit earned by the firm per share. Source: HSBC Global Asset Management, data as at August 31 2021

Trading Trading Bloomberg iNAV Exchange Name Listing Date Hours(Local Reuters RIC iNAV Reuters Currency Ticker Bloomberg Time)

SIX SWISS EXCHANGE September 9 2020 USD 09:00 - 17:30 HSEM SW HSEM.S HSEMUSIV HSEMUSiv.P BORSA ITALIANA SPA October 9 2020 EUR 09:00 - 17:35 HSEM IM HSEM.MI HSEMEUIV HSEMEUiv.P LONDON STOCK EXCHANGE August 28 2020 GBP 08:00 - 16:30 HSEF LN HSEF.L HSEMGBIV HSEMGBiv.P BOLSA INSTITUCIONAL DE VALORES November 30 2020 MXN 08.25 - 15:00 HSEMN MM HSEM.BIV - - LONDON STOCK EXCHANGE August 28 2020 USD 08:00 - 16:30 HSEM LN HSEM.L HSEMUSIV HSEMUSiv.P NYSE EURONEXT - EURONEXT PARIS September 22 2020 EUR 09:00 - 17:30 HSEM FP HSEM.PA HSEMEUIV HSEMEUiv.P DEUTSCHE BOERSE AG-XETRA September 22 2020 EUR 09:00 - 17:30 H4Z1 GY H4Z1.DE HSEMEUIV HSEMEUiv.P

Index Disclaimer FTSE International Limited ("FTSE") © FTSE 2021. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE's express written consent. Reference Carbon Footprint Fund Benchmark Carbon Intensity 185.63 404.06 Carbon Intensity measures the quantity of carbon emission of a company (tonnes CO²e/USD million)

Reference Emissions from Reserves (mn tonnes/USDmn) Fund Benchmark Emissions from Reserves/Market Cap 0.00629 0.00798 * Carbon emissions from reserves mn tonnes/USD mn market cap

Ten Lowest Carbon Intensity Issuers

Carbon Intensity Carbon Intensity Fund (tonnes CO²e/USD Reference Benchmark (tonnes CO²e/USD million) million)

CHINA LIFE INSURANCE CO LTD 10222021 0.31 China Life Insurance 0.31

BANCO BTG PACTUAL SA-UNIT 10139887 0.91 Banco Inter 0.63

ZHONGAN ONLINE P&C INSURAN-H 10258080 0.99 BTG Pactual Participations UNT11 0.91

CHINA TAIPING INSURANCE HOLD 10217437 1.08 ZhongAn Online P & C Insurance (H) 0.99

BANCO BRADESCO S.A. 10190268 1.51 China Taiping Insurance Holdings (Red Chip) 1.08

CHINA EVERBRIGHT LTD 10225898 1.61 Banco Bradesco S/A Ord 1.51 COMMERCIAL BANK PSQC 10126780 1.73 China Everbright (RED CHIP) 1.61 GRUPO DE INV SURAMERICANA 10181813 1.75 Canara Bank 1.73

CATHAY FINANCIAL HOLDING CO 10225834 1.81 Commercial Bank of Qatar 1.73

BANK OF NANJING CO LTD -A 10297935 1.82 Grupo Financiero Inbursa O 1.73

Ten Highest Carbon Intensity Issuers

Carbon Intensity Carbon Intensity Fund (tonnes CO²e/USD Reference Benchmark (tonnes CO²e/USD million) million)

PROYA COSMETICS CO LTD-A 10645381 14167.96 Shanxi Xishan Coal and Electricity Power (A) (SC SZ)43492.65

CHINA RESOURCES CEMENT 10217749 11808.33 Unipro 24966.63

INDOCEMENT TUNGGAL PRAKARSA 10222156 11291.38 China Shenhua Energy (A) (SC SH) 17939.06

SAUDI ELECTRICITY CO 10127020 10999.61 NTPC 16616.60

SEMEN INDONESIA PERSERO TBK 10220144 10751.55 China Resources Power Holdings (RED CHIP) 15861.07

SHREE CEMENT LTD 10198415 8402.60 JSW Energy Ltd. 14768.89 ULTRATECH CEMENT LTD 10156438 8350.12 Adani Power 14488.03 ACC LTD 10148190 7935.92 Proya Cosmetics (A) (SC SH) 14167.96

CHINA NATIONAL BUILDING MA-H 10221701 7084.63 Mosenergo 13502.12

China Power International Development (Red GRASIM INDUSTRIES LTD 10150134 5039.16 12378.47 Chip)

Carbon Intensity Description, Portfolio's exposure to carbon-intensive Description companies, expressed in tons CO²e/USD million revenue.

Formula

Weighted Average Carbon Intensity

Carbon Intensity Methodology: Scope 1 and Scope 2 GHG emissions are allocated based on portfolio weights (the current value of the investmnet Methodology relative to the current portfolio value), rather than the equity ownership approach. Gross values should be used.

Company carbon data, can often be “partially disclosed”, i.e. partial geographic coverage, or incomplete operational data. Trucost* undertakes analysis and research to assess company reported results. The proprietary Trucost model enables an estimate of total emissions which relies on more than just reported financial data. Where securities are not covered by Trucost, HSBC assigns a proxy value based on the average intensity score of comparable companies.*Trucost are a division of S&P Global; they assess risks relating to climate change, natural resource constraints, and broader environmental, social, and governance factors. Source of analytics: S&P Trucost / FTSE FTSE ESG Score ESG E S G

Fund 3.1 2.3 3.0 3.9 Reference Benchmark 2.8 2.0 2.6 3.7

MSCI ESG Score (Shown for comparison purposes) ESG E S G

Fund 5.7 6.0 5.3 4.2 Reference Benchmark 5.1 5.5 4.9 3.7

ESG for Ten Highest Holdings by Weight

Carbon Fund Weight FTSE ESG E S G Intensity

TAIWAN SEMICONDUCTOR MANUFAC 10217598 11.7% 4.4 3.8 4.5 5.0 259.7 TENCENT HOLDINGS LTD 10110703 7.7% 2.3 1.0 2.4 3.5 13.3 INFOSYS LTD 10170616 3.6% 3.9 3.0 3.7 5.0 22.7 ALIBABA GROUP HOLDING LTD 10168316* 2.3% 1.4 0.6 0.8 3.0 35.9 CHINA CONSTRUCTION BANK-H 10198624* 2.3% 1.8 1.0 1.2 2.6 10.8 MEITUAN-CLASS B 10342562 2.0% 2.2 1.0 2.0 3.5 2.1 ITAU UNIBANCO H-SPON PRF ADR 10201811 1.8% 4.7 5.0 5.0 4.3 4.3 IND & COMM BK OF CHINA-H 10220729* 1.3% 2.1 1.0 2.5 2.3 10.8 RELIANCE INDUSTRIES LTD 10127245 1.2% 2.9 2.1 2.4 4.3 367.0 PING AN INSURANCE GROUP CO-H 10198636* 1.0% 3.1 3.0 3.2 3.0 3.0

Carbon Reference Benchmark Weight FTSE ESG E S G Intensity

Taiwan Semiconductor Manufacturing 7.3% 4.4 3.8 4.5 5.0 259.7 Tencent Holdings (P Chip) 5.1% 2.3 1.0 2.4 3.5 13.3 Alibaba Group Holding (P Chip)* 4.2% 1.4 0.6 0.8 3.0 35.9 Meituan Dianping (P Chip) 1.7% 2.2 1.0 2.0 3.5 2.1 Reliance Industries 1.3% 2.9 2.1 2.4 4.3 367.0 Infosys 1.2% 3.9 3.0 3.7 5.0 22.7 Vale SA 1.1% 2.6 1.6 3.3 2.9 335.4 China Construction Bank (H)* 0.9% 1.8 1.0 1.2 2.6 10.8 Housing Development Finance 0.9% 3.4 2.0 2.6 4.6 6.6 Tata Consultancy Services 0.7% 3.9 3.0 3.7 5.0 20.5

ESG for Ten Lowest Holdings by Weight

Carbon Fund Weight FTSE ESG E S G Intensity

BRITIN 5.5 06/03/24 N3 10924781 0.000% 2.2 1.0 2.4 3.3 31.9 SUNAC SERVICES HOLDINGS LTD 10757719 0.001% 2.0 1.2 1.5 3.6 14.8 GAOTU TECHEDU INC 10531877 0.001% 1.2 0.8 0.3 2.5 892.6 KWG LIVING GROUP HOLDINGS LT 10744965 0.001% 2.0 1.6 1.7 2.9 36.8 CHINA EAST EDUCATION HOLDING 10525264* 0.001% 2.2 1.0 1.3 3.5 70.7 GUANGZHOU SHIYUAN ELECTRON-A 10440706 0.001% 2.7 2.3 2.4 3.4 70.1 ZHEJIANG SUPOR CO LTD -A 10440912 0.001% 4.3 3.3 4.8 5.0 60.2 GUANGZHOU BAIYUNSHAN PHARM-H 10227276* 0.001% 2.0 1.8 1.4 3.0 49.5 CHINA EASTERN AIRLINES CO-H 10223170 0.001% 2.6 1.5 3.3 3.3 1323.3 HITHINK ROYALFLUSH INFORMA-A 10426921 0.002% 0.9 1.5 1.0 1.1 12.0

Carbon Reference Benchmark Weight FTSE ESG E S G Intensity

Banpu - Warrants 4*^ 0.000% 2.6 1.8 2.4 3.5 320.6 Banpu - Warrants 5*^ 0.000% 2.6 1.8 2.4 3.5 320.6 Xinhua Winshare Publishing and Media (A) (SC SH)*^ 0.000% 1.7 0.8 1.3 3.0 44.5 Rainbow Digital Commercial (A) (SC SZ)*^ 0.000% 1.4 0.9 1.1 2.5 39.8 Deppon Logistics (A) (SC SH)*^ 0.001% 1.3 1.0 0.6 2.5 152.4 Jiangsu Zhangjiagang Rural Commercial Bank (A) (SC SZ)*^ 0.001% 1.1 1.0 1.3 0.9 4.0

Beijing Lanxum Technology (A) (SC SZ)*^ 0.001% 1.4 1.5 1.7 2.0 12.1 Rongan Property (A) (SC SZ)*^ 0.001% 0.8 0.3 0.4 1.9 55.4 Sichuan Languang Development (A) (SC SH)*^ 0.001% 1.1 0.9 0.9 1.6 55.4 Shenzhen New Nanshan Holding (Group) (A) (SC SZ)*^ 0.001% 0.4 0.3 1.2 1.1 55.4 Source of analytics: S&P Trucost / FTSE Important Information This document was prepared by HSBC Global Asset Management (UK) Limited, a company incorporated, regulated and supervised in the United Kingdom. The ETFs referred to in this document are governed by laws other than Mexico, which may affect the rights that investors have with respect to the funds.

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The fund is a sub-fund of HSBC ETFs plc (“the Company”), an investment company with variable capital and segregated liability between sub-funds, incorporated in Ireland as a public limited company, and is authorised by the Central Bank of Ireland. The company is constituted as an umbrella fund, with segregated liability between sub-funds. Shares purchased on the secondary market cannot usually be sold directly back to the Company. Investors must buy and sell shares on the secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current Net Asset Value per share when buying shares and may receive less than the current Net Asset Value per Share when selling them. Affiliated companies of HSBC Global Asset Management (UK) Limited may make markets in HSBC ETFs plc.UK based investors are advised they may not be afforded some of the protections conveyed by the Financial Services and Markets Act (2000), (the Act). The Company is recognised in the UK by the Financial Conduct Authority under section 264 of the Act. The shares in the company have not been and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States Persons. All applications are made on the basis of the Prospectus, Key Investor Information Document (KIID), Supplementary Information Document (SID) and Fund supplement, and most recent annual and semi-annual reports, which can be obtained upon request free of charge from HSBC Global Asset Management; from a stockbroker or financial adviser or from our website (see below). Investors and potential investors should read and note the risk warnings in the prospectus, relevant KIID and Fund supplement (where available) and additionally, in the case of retail clients, the information contained in the supporting SID.

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Approved for issue in the UK by HSBC Global Asset Management (UK) Limited, who are authorised and regulated by the Financial Conduct Authority. www.assetmanagement.hsbc.com/uk

Further Information can be found in the prospectus and in our Key Investor Information Documents published in our Fund Centre at www.assetmanagement.hsbc.com/uk Terms of Glossary Accumulation Share: a type of share where the income earned by the Fund is retained in the Fund ACD: HSBC Global Asset Management (UK) Limited, the Authorised Corporate Director of the Company Developed Markets: countries with relatively high levels of personal income and established economies Emerging Markets (EM): countries that are progressing toward becoming advanced, usually shown by some development in financial markets, the existence of some form of stock exchange and a regulatory body Equities: shares issued by a company Growth: the increase in the value of investments Income: money generated by a fund, such as interest from a bond or a dividend from a share, which can be paid out to its investors or paid back into the fund and reinvested Income Share: the type of Share where the income earned by the Fund is paid out to you Net Asset Value (NAV): the value of the scheme property of a fund less the liabilities of the fund Ongoing Charges Figure: a measure of what it costs to invest in a fund. It includes the fee paid to the ACD and other operating costs Return(s): the money made or lost on an investment Share(s): an equally valued holding in a fund of a company, representing part ownership of that fund, (including larger denomination shares and smaller denomination shares) Tracking Difference: the difference between the return of the fund and that of the tracking index Tracking Error: the volatility of the difference between the return of a fund and the return of the index or indices it tracks. In general, the lower the tracking error, the more consistent a fund’s performance is relative to the index, and vice-versa Carbon Intensity Description: Portfolio's exposure to carbon-intensive companies, expressed in tons CO²e/USD million revenue. Carbon Intensity Formula: Σ((current value of investment/current portfolio value)*(issuer's Scope 1 and Scope 2 GHG emissions/issuer's $M revenue)) Carbon Intensity Methodology: Scope 1 and Scope 2 GHG emissions are allocated based on portfolio weights (the current value of the investmnet relative to the current portfolio value), rather than the equity ownership approach. Gross values should be used.