(HJAP) HSBC MSCI Japan Climate - Ratings and Ratios

HSBC MSCI Japan Climate Paris Aligned UCITS ETF (HJAP) is an exchange-traded fund listed on XETRA, designed to track the Morningstar Japan TME NR JPY Index. This ETF is part of HSBCs range of sustainable investment products, targeting ESG-focused investors seeking exposure to Japanese large-cap equities. The fund is structured as a UCITS-compliant ETF, offering investors a climate-aligned investment strategy that adheres to the Paris Agreement goals. HJAP focuses on decarbonization and aligns its portfolio with a 1.5°C pathway, integrating ESG metrics to reduce exposure to high-carbon sectors.

From a technical perspective, HJAP currently trades at 13.42 EUR, with a 20-day average volume of 1072 shares. The funds short-term momentum is slightly bearish, as the last price is below its 20-day (13.86) and 50-day (13.89) simple moving averages, while the 200-day SMA (13.74) suggests a longer-term sideways trend. The ATR of 0.14 indicates low volatility, making it suitable for investors seeking stable exposure to Japanese equities.

Fundamentally, HJAP has an AUM of 10.52M EUR, reflecting modest investor interest. The ETF tracks a large-cap-focused index, providing exposure to established Japanese companies across sectors such as technology, automotive, and financials. The funds tracking error is tightly managed, ensuring close alignment with its underlying index. Its climate-aligned strategy emphasizes companies with lower carbon footprints and higher ESG ratings, appealing to investors prioritizing sustainability.

Over the next three months, HJAP is expected to face headwinds from its current technical setup, as the price remains below its key moving averages. The 20-day SMA (13.86) and 50-day SMA (13.89) may act as resistance levels, potentially capping upside. However, the funds low ATR of 0.14 suggests limited downside risk, making it a defensive option for investors seeking stable Japanese equity exposure. The modest AUM of 10.52M EUR may lead to lower trading activity, which could impact liquidity during periods of high market volatility. Investors should monitor volume trends and price action relative to its moving averages to gauge potential entry or exit points.