{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC EURO STOXX 50 UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Swaps"
    ],
    "classification": "complex",
    "supporting_data": "The HSBC EURO STOXX 50 UCITS ETF aims to track the EURO STOXX 50 Index by investing primarily in the shares of the index constituents using physical full replication. However, the Fund may invest up to 10% of its assets in total return swaps and contracts for difference, and up to 10% in other funds including HSBC funds. The KIID and PRIIPs KID explicitly mention the use of derivatives for efficient portfolio management and risk/cost management, but not as a core synthetic replication strategy. The monthly factsheet confirms physical full replication as the primary method. Despite this, the presence of swap agreements (total return swaps) at up to 10% of assets, and the mention of counterparty risk and derivative risk in the risk disclosures, triggers the MiFID II complexity classification. There is no leverage or inverse exposure, and the risk rating is medium-high (5/7), consistent with equity market volatility rather than structural complexity. The Fund is UCITS compliant and has a straightforward index-tracking objective with minimal derivative use for risk management and limited securities lending. However, the use of swaps, even if limited and for efficient portfolio management, requires classification as complex under MiFID II rules. No capital protection or structured features are present. Costs are simple with no performance fees, and ongoing charges are low. The PRIIPs KID does not carry a comprehension warning but confirms derivative use and counterparty risk disclosures. Overall, the Fund is physically replicated with minor derivative overlay, but the presence of swaps mandates a complex classification."
}