{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded swap agreement",
        "Use of options (put spread and call options) for downside protection and buffer",
        "Derivative counterparty risk",
        "Complex index with buffer and cap features",
        "Tail hedge strategy involving options and swaps"
    ],
    "classification": "complex",
    "supporting_data": "The Global X S&P 500 Quarterly Tail Hedge UCITS ETF uses an unfunded swap agreement with approved counterparties to exchange the performance of a basket of equities for the return of a complex index (CBOE S&P 500 15% WHT Quarterly 9% (-3% to -12%) Buffer Product Index). The index itself employs a put spread (buying a put option and selling a lower strike put option) to provide downside protection (buffer) and sells call options to finance this buffer, which caps upside participation. This structure involves derivative instruments (options and swaps) as an inherent part of the investment strategy, not merely for risk management. The fund explicitly references counterparty risk and derivative counterparty exposure. The replication is synthetic, not physical, and the index tracked is complex with contingent payoff features (buffer and cap). There is no leverage or inverse exposure, but the derivative and swap usage combined with the complex index structure and tail hedge strategy make the product complex under MiFID II. The risk profile is medium-high (risk category 5), consistent with the complexity of the product. The PRIIPs KID confirms the use of derivatives and swaps, the complexity of the index, and the medium risk rating (4 out of 7), with a recommended holding period of 5 years, indicating the product is not straightforward for retail investors. No capital protection or principal guarantee is provided, and the product involves significant derivative counterparty risk. The ongoing charges are moderate (0.5%) with no performance fees. The factsheet and KIID confirm the synthetic replication and derivative usage, validating the complex classification."
}