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Equities and ETFs

What are ETFs and Equities?

Equities1 view footnote 1 represent ownership stakes in corporations. Typical equities may include common stock, preferred stock, foreign equities and closed-end funds.

An ETF, or Exchange Traded Fund, is a collection of securities such as equities, bonds, and options that is bought and sold like a stock in real time on a stock exchange. Most ETFs are not actively managed, but instead are designed to track an index. In general the expense ratios of ETFs are relatively low. Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.

Both equities and ETFs can offer potential growth from market price appreciation; however, they are subject to market volatility and thus, open to market price risk and potential loss of principal.

Exchange-traded funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility such that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF but must be bought and sold on an exchange, like an individual equity. ETFs are sold by prospectus. Please consider the investment objectives, risks, charges and expenses carefully along with your specific best interest considerations before investing. The prospectus, which contains this and other information, can be obtained by calling your HSBC Securities (UAE) Inc. Financial Professional2 view footnote 2 Read it carefully before you invest.

Investment and certain insurance products, including annuities, are offered by HSBC Securities (UAE) Inc. (HSI), member NYSE New York Stock Exchange website (Opens new window) This link will open in a new window/FINRA Financial Industry Regulatory Agency (Opens new window) This link will open in a new window/SIPC Securities Investor Protection Corporation website (Opens new window) This link will open in a new window. In California, HSI conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. HSI is an affiliate of HSBC Bank UAE, N.A. Whole life, universal life, term life, and other types of insurance are provided by unaffiliated third parties and offered through HSBC Insurance Agency (UAE) Inc., a wholly owned subsidiary of HSBC Bank UAE, National Association. Products and services may vary by state and are not available in all states. California license #: OD36843.

Investments, Annuity and Insurance Products:

ARE NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES

ARE NOT FDIC INSURED

ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES
MAY LOSE VALUE