{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded total return swaps",
        "Synthetic replication",
        "Counterparty risk exposure",
        "Derivative instruments used for core strategy"
    ],
    "classification": "complex",
    "supporting_data": "The iShares MSCI World Swap UCITS ETF uses synthetic replication via unfunded total return swaps to achieve its investment objective, as explicitly stated in the KIID, PRIIPs KID, and confirmed by the monthly factsheet. The fund does not physically hold the underlying equities but gains exposure through swap agreements, which introduces counterparty risk. The KIID risk profile rates the fund at level 6, indicating higher risk due to derivative usage and counterparty exposure. There is no leverage or inverse exposure, but the use of swaps as a fundamental part of the investment strategy classifies the ETF as complex under MiFID II. The fund is UCITS compliant and an ETF, but the synthetic structure and derivative reliance are key complexity drivers. Costs are straightforward with no performance fees, but securities lending revenue sharing is noted. The PRIIPs KID does not include a comprehension warning but confirms medium risk (4/7) and derivative use. The monthly factsheet confirms the synthetic swap methodology and counterparty risk, with no leverage or structured capital protection features. Overall, the synthetic replication via unfunded total return swaps and associated counterparty risk are the primary reasons for the complex classification despite the fund's straightforward equity index exposure and absence of leverage."
}