{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI World Small Cap ESG UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": "Swaps usage, Optimization technique, ESG screening",
    "classification": "complex",
    "supporting_data": "The Fund aims to track the MSCI World Small Cap SRI ESG Leaders Select Index using a physical sampling replication method with optimization. It invests primarily in equities but may use derivatives, including up to 10% total return swaps and contracts for difference, mainly for investment and efficient portfolio management purposes. The Fund may also engage in securities lending up to 30% of assets. The presence of total return swaps (up to 10%) and contracts for difference, even if limited, and the use of optimization rather than full replication, introduce complexity. The Fund is UCITS compliant and not leveraged or inverse. The risk profile is high (category 6 in KIID) due to market volatility and derivative usage, but the derivatives are used as part of the investment strategy rather than solely for risk management, so derivatives are marked true. The PRIIPs KID shows a medium risk indicator (4/7), reflecting moderate risk perception but does not negate the complexity from swap usage. No leverage or inverse exposure is present. The Fund invests in a complex ESG screened index with sector and issuer concentration limits, which adds to complexity. No capital protection or structured features are present. Costs are straightforward with no performance fees but include derivative-related costs. Overall, the presence of funded total return swaps and contracts for difference, combined with optimization replication and securities lending, leads to a classification of complex under MiFID II despite physical replication being the primary method."
}