{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI USA CLIMATE PARIS ALIGNED UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Derivative Exposure"
    ],
    "classification": "complex",
    "supporting_data": "The Fund aims to track the MSCI USA Climate Paris Aligned Index primarily through physical replication of shares in the Index. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, and up to 10% in other funds. The use of total return swaps and contracts for difference, even if limited, introduces synthetic elements and counterparty risk, which are complexity indicators under MiFID II. The Fund is UCITS compliant and uses physical replication as the main method, but the presence of swap agreements and derivative instruments for gaining exposure or efficient portfolio management triggers complexity classification. There is no leverage or inverse exposure, and the risk profile is medium-high (risk category 5-6), reflecting market volatility rather than structural complexity. The PRIIPs KID and monthly factsheet confirm derivative usage is limited and primarily for exposure or risk management, but the presence of swaps mandates classification as complex. No capital protection or structured features are present. Costs are straightforward with no performance fees, but swap fees and derivative costs are implicit. The Fund\u2019s complexity arises mainly from the partial use of swaps and derivative contracts, which may not be easily understood by retail investors, despite the physical replication of the majority of the portfolio."
}