At a glance
HSBH charges 0.19% a year. It has $2.1M in assets; it paid 2.6% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +32.3% with distributions reinvested (S&P 500: +11.5%).
The short version
HSBC Holdings plc ADRhedged (HSBH), from Precidian Investments, holds one stock: U.S.-traded receipts (ADRs) for shares of the British bank HSBC. It pairs them with a currency swap designed to offset moves in the pound against the dollar. The aim is to match HSBC's total return in London, before fees, for 0.19% a year. Because it owns a single bank, its swings can be far larger than a diversified fund's.
Price history
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HSBH +32.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HSBH official prospectus, to Dec 31, 2025 | — | +54.36% | — | — | — | +56.95% |
| HSBH price data to Oct 27, 2026 | +14.2% | +32.3% | — | — | — | +40.2% |
- Over the year to Oct 27, 2026, HSBH returned +32.3%.
- Its worst full calendar year was 2025 (+53.3%); its best was 2025 (+53.3%).
- The deepest fall in its price history was 20.5% (Feb 28, 2025 to Apr 8, 2025), recovered by Jul 9, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +14.2% | — |
| 2025 | +53.3% | +54.36% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.5000 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 96.22% of assets, and 3.96% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| HSBC HOLDINGS PLC | 96.22% |
By country
United Kingdom 96.22%By asset type
Stocks 96.22%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $1.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.64%, +3.20%, +2.88%.
How it works
HSBH does not follow an index. Under normal conditions, it invests at least 95% of net assets in American Depositary Receipts (ADRs) of HSBC Holdings plc. ADRs are receipts issued by a U.S. bank. Each one represents shares of a foreign company and trades in dollars on U.S. exchanges. As of June 30, 2026, the HSBC ADR made up about 96.2% of assets and cash about 4.0%. Because it holds only one company, the fund is non-diversified.
An ADR's dollar price still moves with the pound, because HSBC's shares are priced in pounds. To offset that, the fund holds a currency swap. This is a contract designed to gain when the pound weakens and lose when it strengthens. As of June 30, 2026, the other party to the swap was Canadian Imperial Bank of Commerce. The swap's size is reset daily to match the ADRs' value, and gains or losses are settled in cash each day.
When the fund owes money on the swap, the manager may sell ADRs. As a result, the number of ADRs behind each fund share can shrink over time. The hedge may not track currency moves perfectly, and the fund could lose money if that bank fails to pay. For U.S. federal income tax, the fund intends to be treated as a grantor trust, so its income, gains and losses pass through to shareholders.
What it really costs
- HSBH charges 0.19% a year.
- Of that, 0.17% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $19 in the first year and $243 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HSBH | $19 | $61 | $107 | $243 |
In a retirement portfolio
It holds a single bank stock, and its one-year volatility (a measure of how widely returns swing) was 25.1% as of October 27, 2026, so it may fit as a small add-on rather than a foundation.
HSBH could add exposure to a single British bank, with the pound's swings largely hedged out, alongside diversified core funds. It launched October 1, 2024, so it did not exist during the 2008, 2020 or 2022 market declines. Its only full calendar year, 2025, was a 53.3% gain. Its deepest drop was 20.5%, from February 28 to April 8, 2025. It recovered by July 9, 2025, about three months later. It also fell 16.4% in the three months to October 27, 2026. Anyone who must sell during a slump like these could lock in losses.
Income arrives twice a year, and the yield over the 12 months to October 27, 2026, was 2.6%. In the SEC's standard example, the 0.19% expense ratio comes to $19 in the first year on $10,000. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want HSBC's returns in its London market without the pound-dollar exchange rate adding to or subtracting from results.
- Investors at ease with single-stock swings: HSBH fell 20.5% in early 2025 and 16.4% in the three months to October 27, 2026.
- Holders wanting HSBC dividend income twice a year at low cost: a 2.6% yield as of October 27, 2026, and a 0.19% expense ratio.
Look elsewhere if
- Anyone wanting diversification: the fund is non-diversified and holds only HSBC, so problems at the bank, in banking or in the UK hit it directly.
- Investors wary of tiny funds: net assets were about $2.1 million as of June 30, 2026, after about $1.1 million left over three months.
- Those who want a long history or pound exposure: HSBH launched October 1, 2024, and its hedge aims to remove currency gains as well as losses.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
What is HSBH and what does it hold?
HSBH is HSBC Holdings plc ADRhedged, a Precidian Investments fund. It holds American Depositary Receipts (ADRs) of the London-based bank HSBC, plus a currency swap. ADRs are dollar-traded receipts that represent a foreign company's shares. As of June 30, 2026, the HSBC ADR made up about 96.2% of assets and cash about 4.0%. The swap is designed to offset moves in the pound against the dollar. The fund launched October 1, 2024, and does not track an index.
What's the difference between HSBH and HSBC stock?
The main difference is the currency hedge. The HSBC ADR trades in dollars, but its price still rises and falls with the pound. HSBH holds that same ADR and adds a currency swap, adjusted daily, that is meant to remove the pound's effect. The aim is to match HSBC's total return in its London market. In exchange, HSBH charges a 0.19% annual expense ratio. It also depends on the bank on the other side of the swap paying, and it may sell ADRs over time to settle hedge payments.
Does HSBH pay dividends?
Yes. HSBH pays income twice a year. Over the 12 months to October 27, 2026, it paid about $2.50 per share, a yield of 2.6%. That income comes mainly from the HSBC ADRs it holds. HSBH intends to be treated as a grantor trust for U.S. federal income tax purposes. Its income, gains and losses would then flow through to shareholders in proportion to their holdings, rather than being taxed at the fund level.
How has HSBH performed since launch?
It has posted large gains, with sharp swings along the way. According to its prospectus, HSBH returned 54.36% in 2025. From its October 1, 2024, launch through December 31, 2025, it averaged 56.95% a year. Based on share prices, it gained 32.3% over the year to October 27, 2026, and 14.2% in 2026 through that date, despite a 14.7% drop in the final month. It did not exist during the 2008, 2020 or 2022 market declines.
Is HSBH a risky investment?
Yes, more than most funds. HSBH is non-diversified and holds one company, so trouble at HSBC, in banking or in the UK hits it directly. Its one-year volatility, a measure of how widely returns swing, was 25.1% as of October 27, 2026. Its deepest drop was 20.5%, in early 2025. The currency swap adds the risk that the bank on the other side fails to pay. Net assets were only about $2.1 million as of June 30, 2026.