- Of the 58 HSBC funds analysed, 25.8% achieved a 4 or 5 star Yodelar Rating.
- A total of 44.9% of HSBC funds received a 1 or 2 star rating, indicating prolonged periods of underperformance when compared with their respective sector averages.
- The two highest rated HSBC funds, the HSBC Euro Stoxx 50 Index fund and the HSBC FTSE 100 Index fund, each achieved a 5 star Yodelar Rating after outperforming their sector averages over 1, 3 and 5 years.
- The HSBC American Index fund delivered 100.52% over 5 years, outperforming the IA North America sector average of 75.56%, supporting its 4 star Yodelar Rating.
HSBC is one of the largest banking and investment groups globally, managing hundreds of billions of pounds on behalf of investors. In the UK, its funds are widely used across ISAs, pensions and workplace schemes, offering exposure to equity, index, multi asset and regional investment strategies. Due to their scale and broad availability, HSBC funds are commonly held within long term investor portfolios.
In this review, we analysed the performance of 58 HSBC funds across 1, 3 and 5 year periods. Each fund was assessed relative to its Investment Association sector average and assigned an overall Yodelar Rating to support consistent comparison across the fund range.
The analysis shows that HSBC offers a broad and accessible range of funds, with performance outcomes varying across the range. While some funds have delivered competitive results over multiple timeframes, a meaningful proportion have not kept pace with their sector averages during the periods reviewed. This level of variation highlights the importance of reviewing fund level outcomes rather than relying on brand recognition alone.
HSBC Fund Performance Summary
We completed a comprehensive analysis of 58 HSBC funds, reviewing their performance and sector rankings over the past 1, 3 & 5 years. Each fund received an overall Yodelar Rating based on how it performance in comparison to all other funds within its sector.
How Yodelar Rates Fund Performance
The analysis identified that 15 funds, representing 25.8% of their range, achieved a 4 or 5 star Yodelar Rating, indicating sustained and competitive performance against sector averages.
By contrast, 26 funds, or 44.9% of those analysed, received a poor performing 1 or 2 star rating. These funds have consistently lagged behind their sector averages over the periods analysed.
Top Performing HSBC Funds
Below we highlight the five best performing HSBC funds from our analysis. Each of these funds has delivered strong performance, ranking well within its sector over the 1, 3 and 5 year periods reviewed.
HSBC Euro Stoxx 50 Index Fund
The HSBC Euro Stoxx 50 Index fund has been one of the strongest performers across the HSBC range. It provides exposure to large-capitalisation European equities and closely tracks the Euro Stoxx 50 index.
Over 1 year, the fund returned 26.80%, comfortably ahead of the IA Europe Excluding UK sector average of 19.05%. Over 3 years, it delivered 56.98% versus the sector average of 40.09%, and over 5 years it returned 80.42%, compared with 54.18% for the sector.
HSBC FTSE 100 Index Fund
The HSBC FTSE 100 Index fund has also delivered consistently strong results relative to its sector. Despite ongoing challenges for UK equities, the fund has outperformed the IA UK All Companies sector over each period analysed.
Over 1 year, it returned 20.68% compared with a sector average of 11.53%. Over 3 years, returns reached 43.28% versus 29.38%, and over 5 years the fund delivered 81.10%, well ahead of the sector average of 48.38%.
HSBC American Index Fund
The HSBC American Index fund provides broad, low cost exposure to the US equity market and its long term performance has been clearly competitive within its sector. Over 1, 3 and 5 years the fund delivered returns of 9.07%, 59.58% and 100.52%, comfortably ahead of the IA North America sector averages of 3.65%, 47.30% and 75.56%.
HSBC Global Strategy Dynamic Portfolio
This fund sits within the IA Volatility Managed sector and is designed to deliver growth through diversified asset allocation within a defined risk framework.
Over 1 year, it returned 10.55% against a sector average of 8.76%. Over 3 years, it delivered 40.41% versus 27.02%, and over 5 years 54.79% compared with 29.60% for the sector.
Its consistent performance across the analysed timeframes resulted in a 4 star Yodelar Rating, reflecting effective diversification and portfolio construction rather than reliance on any single market theme.
HSBC Global Strategy Adventurous Portfolio
Also within the IA Volatility Managed sector, the Adventurous portfolio targets higher long-term growth through increased equity exposure.
It returned 11.15% over 1 year, ahead of the sector average of 8.76%. Over 3 years, returns reached 45.30% compared with 27.02%, and over 5 years the fund delivered 65.73%, more than double the sector average of 29.60%.
Underperforming HSBC Funds
While several HSBC funds have delivered competitive returns, others have struggled to keep pace with their sector peers. The following five funds ranked among the weakest performers in our analysis and received low Yodelar Ratings due to sustained underperformance.
HSBC MSCI Indonesia UCITS ETF
This specialist regional fund has delivered particularly weak results. Over 1 year, it returned -11.28% compared with a sector average of 15.98%. Over 3 years, returns were -18.48% versus 35.12%, and over 5 years the fund delivered -3.08%, well below the sector average of 40.77%.
Performance has been heavily affected by political risk, currency volatility and uneven economic growth within the region.
HSBC Europe Ex UK Equity Fund
Despite operating within a strong European equity environment, this fund has underperformed consistently. Over 1 year, it returned 6.76% compared with a sector average of 19.05%, and over 3 years delivered 17.87% versus 40.09%.
Limited exposure to the strongest areas of European equity markets contributed to its relative weakness.
HSBC MSCI Pacific Ex Japan UCITS ETF
This fund has lagged its IA Asia Pacific Excluding Japan sector over shorter periods. Over 1 year, it returned 5.62% compared with 16.75% for the sector, and over 3 years delivered 19.60% versus 33.17%.
Although 5 year performance of 31.82% was above the sector average of 26.49%, its 1 and 3 year rating has been among the worst in the entire sector. As a result, the fund received a 1 star Yodelar rating.
HSBC FTSE 250 Index Fund
The HSBC FTSE 250 Index fund illustrates how index exposure alone does not guarantee competitive outcomes. Over 1 year, it returned 8.73% compared with the sector average of 11.53%. Over 3 years, it delivered 22.44% versus 29.38%, and over 5 years 29.05%, well below the sector average of 48.38%.
HSBC Global Responsible Multi Asset Balanced Portfolio
This fund has underperformed within the IA Volatility Managed sector. Over 1 year, it returned 5.46% compared with a sector average of 8.76%. Over 3 years, it delivered 23.56% versus 27.02%, and over 5 years 26.12%, below the sector average of 29.60%.
Summary
HSBC provides UK investors with a wide selection of funds across asset classes and regions. However, our analysis of 58 funds highlights clear variation in performance across the range. Slightly over a quarter of the HSBC funds analysed delivered consistently strong results relative to their sector averages, while a significant proportion underperformed over multiple timeframes.
These findings reinforce the importance of assessing each fund individually rather than forming any assumptions based on provider reputation alone. Even within large and established fund groups, performance dispersion can be substantial.
Why Diversification and Oversight Matter
The uneven performance across HSBC’s fund range reflects a broader reality of investing. Market cycles, regional dynamics and asset allocation decisions all influence outcomes, and no single fund house performs strongly across all conditions.
Maintaining diversification across different fund managers, regions and asset types helps manage these variations. Ongoing portfolio oversight ensures holdings remain aligned with their intended role and risk profile as markets evolve.
Discretionary portfolio management, such as that provided through MKC Invest, allows portfolios to be monitored and adjusted proactively. In an environment where performance differences between funds can be significant, disciplined oversight and evidence-based decision making remain central to achieving more consistent long-term outcomes.
