{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic exposure to bond futures",
        "Leverage via bond futures component",
        "Use of futures contracts",
        "High risk rating (7/7)",
        "Tracking error risk",
        "Counterparty risk related to futures",
        "Complex index construction with ESG and multi-asset exposure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Global Efficient Core UCITS ETF is a UCITS-compliant ETF that physically replicates the equity component of its index via representative sampling of large-cap global developed equities. However, it achieves synthetic exposure to the bond component through global government bond futures contracts, representing 60% notional exposure. This use of bond futures introduces leverage and derivative exposure inherent to the strategy, although the fund itself does not use swaps or total return swaps. The index construction involves a 90% equity, 60% bond futures, and 10% cash collateral allocation, effectively delivering a leveraged position relative to a traditional 60/40 portfolio. The PRIIPs KID explicitly states the product has a highest risk rating of 7/7, reflecting the leverage and derivative exposure. The KIID and factsheet confirm no use of swaps but do confirm synthetic exposure via futures and leverage. The fund also discloses counterparty risk related to futures contracts and tracking error risk. The complexity arises primarily from the leveraged exposure via bond futures and the synthetic nature of the bond component, which may be difficult for retail investors to fully understand. There is no capital protection or structured product features. Costs are straightforward with no performance fees or swap fees. Overall, the presence of leverage through futures and synthetic bond exposure, combined with a high risk rating and counterparty risk, leads to a MiFID II classification of complex despite physical replication of equities and UCITS compliance."
}