HSBC iShares Global Clean Energy ETF Autocallable Notes Investor Lawsuits
The White Law Group is investigating potential securities lawsuits involving HSBC iShares Global Clean Energy ETF Autocallable Notes.
Investors who purchased a structured product from HSBC linked to the iShares® Global Clean Energy ETF may face significant downside risk depending on ETF performance.
The structured note in question—HSBC’s Autocallable Market-Linked Step Up Notes linked to the iShares® Global Clean Energy ETF (CUSIP: 40438U697)—was issued in April 2021 with a face value of $37,483,860. The note’s performance is tied to the price of the ETF, and poor performance could substantially reduce or eliminate the final payout.
Details of the Investment
- Issue Date: April 1, 2021
- Linked Security: iShares® Global Clean Energy ETF (NYSEARCA: ICLN)
- Product Type: Autocallable Market-Linked Step Up Note
- Face Value: $37,483,860
- Final Payout: Depends on ICLN price on March 25, 2024
- If price ? $22.51 (initial price): $10 + call premium ($1.84 or $3.68)
- If price < $22.51: $10 × (final price ÷ 22.51) — potential full loss
- Total Loss Potential: Up to 100% of principal. Investors could receive as little as $0 if the ETF declines, or up to $13.68 if it performs well and is called.
Why Could the Investment Lose Value?
Autocallable structured products offer capped returns and expose investors to losses if the underlying ETF underperforms. In this case:
https://www.sec.gov/Archives/edgar/data/83246/000110465921043135/tm2110488d31_424b2.htm
- Automatically called if ICLN price ? $22.51 on observation dates.
- If not called, and ICLN closes below the starting value at maturity, investor loss mirrors decline.
- No interest payments. Step-up capped at $6 if held to maturity.
Understanding the Risks of Autocallable Notes
Although marketed with defined return potential, risks include:
- Market risk of the underlying ETF (ICLN).
- Credit risk of HSBC USA Inc.
- No protection if price is below threshold.
- Illiquidity and capped returns.
Did Your Financial Advisor Recommend This Investment (HSBC iShares Global Clean Energy) ?
Firms must recommend suitable investments. If this ETF-linked note was unsuitable for your needs, you may be entitled to recovery through FINRA arbitration.
FINRA Arbitration vs. Class Action
- Individual arbitration better for losses over $100,000
- Class actions suited to smaller, uniform claims
https://whitesecuritieslaw.com/finra-arbitration-attorney/
Free Consultation
The White Law Group is investigating claims involving HSBC iShares Global Clean Energy ETF Autocallable Notes. Call (888) 637-5510 for a free consultation.
Visit www.whitesecuritieslaw.com for more info.
Last modified: May 28, 2025
