Indexing Goes Green for ETFs | ETF Trends

HSBC Corporate, Investment Banking and Markets, released the HSBC Global Climate Change Benchmark Index earlier this week, which means exchange traded funds (ETFs) to track it could soon follow. The index will cover the performance of 300 companies that are poised to profit from the challenges surrounding climate change, reports Darla Mercado for Investment News. This index captures both the promptness of reducing greenhouse gas emissions, as well as the necessity to adapt to the physical impact of climate change.

In addition, four sub-indexes have been released, including:

  • HSBC Climate Change Index
  • Low Carbon Energy Production Index
  • Energy Efficiency and Energy Management Index
  • Water Waste & Pollution Control Index

It will be interesting to see what type of ETFs come from these index inventions.

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