{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": "Swaps",
    "classification": "complex",
    "supporting_data": "The HSBC MSCI World Value ESG UCITS ETF is a UCITS-compliant ETF that primarily uses physical full replication of the MSCI World Value SRI ESG Target Select Index, investing directly in shares of large and mid-cap companies in developed markets. However, the Fund may invest up to 10% of its assets in total return swaps and contracts for difference, with swap exposure not expected to exceed 5%. The Fund also uses derivatives for efficient portfolio management and may engage in securities lending up to 30% of assets. The presence of total return swaps and contracts for difference, even at limited levels, triggers a synthetic element in the replication method, which under MiFID II rules classifies the ETF as complex. There is no leverage or inverse exposure, and derivatives are not used for leverage but as part of the investment strategy. The risk profile in the KIID is high (category 6), reflecting market volatility rather than leverage. The PRIIPs KID shows a medium risk rating (4/7), but confirms derivative and counterparty risks, including counterparty risk disclosures and liquidity risk. No capital protection or structured features are present. Costs are straightforward with no performance fees, but swap usage implies derivative costs. The monthly factsheet confirms physical full replication as the primary method, with limited swap usage for up to 10% of assets, consistent with the prospectus. The Fund invests directly in liquid, transparent equity securities, but the use of swaps and contracts for difference, even at a limited scale, and the associated counterparty risk, mean the product is classified as complex under MiFID II. There is no leverage or inverse exposure, and no contingent bonds or structured products in the underlying holdings. The complexity arises mainly from the partial synthetic replication via swaps and the associated counterparty risk disclosures."
}