HSBC etfs?

petaling

I am a newbie for UK investing: just opened a sharedealing account with view of investing in shares isa and also personal passive investment thru buying etfs.
I would like to buy some HSBC branded etfs but the KIID shows that they have a 3% charge upfront 3% exit fee while iShares and Vanguard has none.The KIID also says no charge should apply if bought and sold on the stock exchange.
Does it mean it is like Vanguard or iShares ie no fees ?
a bit confused.
One-offchargestakenbeforeorafteryouinvestEntry charge3.00%Exit charge3.00%This is the maximumthat might be taken out of your moneybeforeitis investedor beforethe proceedsof your investmentare paid out.ChargestakenfromtheFundovera yearOngoingcharge0.15%ChargestakenfromtheFundundercertainspecificconditionsPerformancefeeNone.No entry or exit chargeis payablewheresharesare purchased/soldon a stock exchange.Investorsneed only pay any relevantbrokerand stock exchangefees and commissions

KeyInvestorInformationThis documentprovidesyou with key investorinformationabout this Fund.It is not marketingmaterial.The informationis requiredby law to help you understandthe natureand the risks of investingin thisFund.You are advisedto read it so you can make an informeddecisionabout whetherto invest.HSBCMSCI WORLDUCITSETF

masonic

The one off charges are often discounted to zero by the provider. The stated charge therefore represents a maximum and not an actual figure, which is pretty much what the text you pasted states.

I'm surprised to see this said of ETFs, though. There will be bid-offer spread and a trading fee, but the latter is usually a fixed charge and the former determined by the market.

petaling

well the Hsbc kiid makes it complicated and uncompetitive against Vanguard and iShares which states the entry charge and exit as zero.
No if or buts.
Thanks

londoninvestor

The KIID I'm looking at:
https://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/Documents.aspx/?type=point_of_sale&id=a96bcd2b-bfb4-4182-8cf4-b308e8dafb68&user=s0gWbZnDHerVAjJ5Kw8rVivBzhMHCFPlsw7SU7eeglU%3d&r=1

states that no entry/exit fees will be charged to anyone buying or selling shares on an exchange.

It states that these fees are the maximum that can be charged to Authorised Participants, i.e. arbitrageurs who convert shares in the ETF to or from a basket of the underlying shares:
https://www.investopedia.com/terms/a/authorizedparticipant.asp

Now I strongly doubt HSBC would ever charge the APs anything like 3%, because deterring the arbitrageurs doesn't help the liquidity of the fund. But that's moot for you as a private investor - it's not a charge you'll pay.

Alexland

Given these are exchange traded then I don't really see how an entry fee could be collected anyway apart from perhaps when first creating and floating units on the market. By the time you invest the units are essentially second hand.