{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Global X S&P 500\u00ae Annual Buffer UCITS ETF",
    "investment_objective": "To provide investment results that closely correspond, before fees and expenses, generally to the price and yield performance of the CBOE S&P 500\u00ae Annual 15% Buffer Protect Index, which seeks to provide similar returns to the S&P 500\u00ae Index with lower volatility and downside risks via a buffer mechanism.",
    "primary_asset_class": "Equity",
    "geographic_focus": "Global equity securities with focus on US S&P 500 Index",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded swap agreement",
        "Use of options (put spreads and call writing) embedded in the index",
        "Capital buffer and cap mechanism",
        "Counterparty exposure",
        "Derivative counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The Fund uses an unfunded swap agreement with approved counterparties to exchange the performance of a basket of equities for the return of the CBOE S&P 500\u00ae Annual 15% Buffer Protect Index minus fees. The Index itself employs a put spread option strategy (buying a put and selling a lower strike put) to provide a 15% downside buffer, funded by selling call options that cap upside participation. This embedded options strategy creates a capital protection-like buffer and cap, which is a structured feature. The Fund discloses counterparty risk related to the swap counterparties and derivative instruments. The replication is synthetic, not physical, and the Fund may also use other derivatives such as futures and options to gain exposure. There is no leverage or inverse exposure. The risk profile is moderate (risk category 3-4), but the complexity arises from the use of derivatives and structured index features rather than leverage or illiquid assets. The PRIIPs KID confirms the use of unfunded swaps and derivative instruments and highlights the need for investors to understand the buffer and cap mechanism, indicating complexity. The Fund is UCITS compliant but the embedded derivative strategy and swap usage classify it as complex under MiFID II. No performance fees or securities lending are involved, and ongoing charges are straightforward. The complexity is driven by the synthetic replication via swaps and the structured buffer/cap index construction, which may be difficult for retail investors to fully understand."
}