Key Morningstar Metrics for HSBC FTSE All Share Index Fund
- : SilverMorningstar Medalist Rating
- : Above AverageProcess Pillar
- : Above AveragePeople Pillar
- : AverageParent Pillar
HSBC FTSE All-Share Index tracks the FTSE All-Share Index, a broad and diversified benchmark that captures approximately 98% of the UK equity market, offering comprehensive and representative exposure to UK-listed stocks. The index allocates around one-fourth of its weight to mid-, small-, and micro-cap stocks, offering more diversified exposure than the well-known but large-cap-heavy FTSE 100 Index. As a result, the FTSE All-Share Index is expected to deliver stronger risk-adjusted returns over the long term. The fund employs an optimized approach to replicate the index.
The FTSE All-Share Index, with its broad exposure, has historically been a difficult benchmark for active managers to outperform. The fund has delivered superior risk-adjusted returns compared with the average peer in the UK large-cap equity Morningstar Category over the trailing three-, five-, and 10-year periods.
The index and systematic equity portfolio management team operates collaboratively, with each portfolio managed by a primary, deputy, and training manager to ensure shared responsibility and accountability. The team uses HSBC TRAC, an in-house decision-making tool, to maintain a disciplined investment process. Investment specialists support the passive strategies, and all trades are executed by HSBC’s central equity trading desk in coordination with the portfolio management team.
Overall, this is the best passive option for investors seeking broad UK equity exposure. Its portfolio is well diversified and captures almost the entire opportunity set, making it a challenging benchmark for active managers to consistently outperform. The fund maintains a minimal level of tracking error, and Morningstar has a positive view of the experienced portfolio management team. Additionally, the fund benefits from the compounding effect of low fees across most of its share classes.
HSBC FTSE All Share Index Fund: Performance Highlights
The UK equity market has extended the momentum it built in 2025, with the FTSE All-Share gaining close to 20% over the past twelve months to the end of June 2026 and reaching a record high in late February 2026, before a spring correction and subsequent recovery. This marks a clear break from the period of modest growth of less than 5% annually between 2022 and 2024. The advance has been led by financials, with healthcare and energy sectors also contributing positively, while technology exerted downward pressure. Growth was strongest among top constituents, which contributed to the FTSE All-Share Index slightly lagging the FTSE 100.
The FTSE All-Share Index has proved to be a challenging benchmark for active managers to outperform. Its exposure to mid- and small-cap stocks provides additional diversification benefits and improves long-term risk-adjusted returns. Funds tracking this index have consistently delivered second-quartile performance relative to their peer group in nine of the past 10 years, as measured by both absolute and risk-adjusted returns.
