HSBC has launched a new exchange-traded fund designed to replicate the performance of the MSCI Canada Index – the bank’s seventeenth ETF launch in Europe.

HSBC said it regards Canada as an attractive growth market as, although it is sometimes overlooked by international investors, it has the “uncommon combination of being rich in natural resources coupled with having a stable political system.”

Underpinning the investment case for Canada, the bank says, is the fact that the world is in the early stages of a commodity super-cycle off the back of massive infrastructure spending in emerging markets. China of course springs first to mind as its government has committed huge sums to infrastructure as living standards continue to rise due to the country's growing wealth.

The HSBC MSCI Canada ETF was listed on the London Stock Exchange yesterday and is available in both sterling and US dollar share classes. The bank also plans further registrations and cross-listings in Europe.