{
    "type": "ETF",
    "ucits": true,
    "fund_name": "VanEck Morningstar US Wide Moat UCITS ETF",
    "investment_objective": "Track the price and yield performance of the Morningstar\u00ae Wide Moat Focus Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "Primarily United States (97.38%) with minor exposure to Netherlands (2.46%)",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps usage",
        "Derivative instruments usage"
    ],
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS-compliant ETF primarily investing in equities of the Morningstar\u00ae Wide Moat Focus Index, with physical full replication as the main strategy. However, the KIID and PRIIPs KID explicitly state that the Fund may also invest in financial derivative instruments (FDIs) such as futures, options, equity swaps, index swaps, currency forwards, and non-deliverable forwards (NDFs). The use of swaps, including equity swaps and index swaps, is explicitly mentioned, indicating synthetic replication elements or at least partial synthetic exposure. Although the Fund primarily uses physical replication, the presence of swap agreements and other derivatives as part of the investment strategy triggers complexity under MiFID II. The derivatives are used as part of the investment strategy rather than solely for risk management, so 'derivatives' is marked false only if used purely for risk management, but here they are inherent to the strategy. There is no leverage, inverse or amplified exposure, and no capital protection or structured features. The risk rating is 5 out of 7, indicating medium-high risk, consistent with equity market risk and concentration risk, but not extreme complexity from leverage or structured products. The Fund holds liquid, transparent equity securities with no complex underlying assets like contingent convertible bonds or CLOs. The total expense ratio is 0.46%, with no performance fees. The PRIIPs KID does not carry a specific comprehension warning but does highlight the need for investors to have sufficient knowledge and understanding, which aligns with the complexity introduced by derivative usage. The monthly factsheet confirms physical full replication as the primary method but does not exclude the use of derivatives. Therefore, the presence of swap agreements and derivative instruments as part of the investment approach classifies this ETF as complex under MiFID II rules despite its physical replication focus and medium risk profile."
}