(H4Z1) HSBC Emerging Market - Ratings and Ratios

The HSBC Emerging Market Sustainable Equity UCITS ETF, traded on XETRA under the ticker symbol H4Z1, is an investment vehicle that tracks the Morningstar Emerging Markets TME NR USD Index. This ETF is designed to provide exposure to a broad range of emerging markets equities that adhere to certain sustainability criteria.

The fund is domiciled in Germany and falls under the Global Emerging Markets Equity category, making it an attractive option for investors seeking diversified exposure to emerging markets with a focus on sustainability. The Morningstar Emerging Markets TME NR USD Index serves as the benchmark, guiding the ETFs investment composition and strategy.

Analyzing the ETFs recent price action, we observe that it is currently priced at €14.71. The short-term Simple Moving Average (SMA20) is €13.77, indicating a recent uptrend as the current price is above this average. The medium-term SMA50 is €14.14, and the long-term SMA200 is €14.30, further supporting the notion of a positive trend, albeit with a recent slowdown indicated by the proximity of the current price to these averages. The Average True Range (ATR) stands at 0.30, or 2.06% of the current price, suggesting moderate volatility.

With Assets Under Management (AUM) of €167.60 million, the ETF has a reasonable scale, potentially offering liquidity and a cost-effective structure for investors. The 52-week high and low prices are €15.44 and €12.42, respectively, giving a range within which the ETF has traded over the past year.

Forecasting the ETFs future performance involves analyzing both technical indicators and fundamental data. Given the current price is above its SMA20, SMA50, and near its SMA200, it indicates a strong uptrend. However, the proximity to the SMA200 and the 52-week high suggests potential resistance. Considering the AUM and the ETFs focus on sustainable emerging markets equities, if the broader emerging markets continue to attract capital due to their growth potential and if sustainability-focused investments remain in favor, the ETF could see further inflows. Thus, a potential target could be a move towards the 52-week high, or €15.44, assuming the current trend continues and theres no significant downturn in the broader emerging markets or a shift away from sustainable investments.

However, its crucial to monitor the ETFs tracking efficiency, fees, and how closely it adheres to its sustainability criteria, as these factors can impact its long-term performance. Investors should also be aware of the inherent risks in emerging markets, including currency fluctuations, political instability, and economic volatility.