{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via funded total return swap",
        "Counterparty exposure to UBS AG",
        "Use of derivatives as inherent part of strategy"
    ],
    "classification": "complex",
    "supporting_data": "The UBS S&P 500 Equal Weight SF UCITS ETF uses synthetic replication through a fully funded total return swap with UBS AG as counterparty, as confirmed by the KIID, PRIIPs KID, and the factsheet. The fund does not physically hold the underlying index securities but swaps the index performance for the performance of a basket of securities it holds. This swap structure inherently exposes investors to counterparty risk. The fund invests in derivatives as an essential part of its investment strategy rather than for risk management purposes, which triggers complexity under MiFID II. There is no leverage or inverse exposure, and the fund is UCITS compliant. The risk profile in the KIID rates the fund at 6 out of 7, indicating a relatively high risk, partly due to the synthetic structure and counterparty risk. Costs are straightforward with no performance fees, but derivative-related costs are embedded. The PRIIPs KID does not include a comprehension warning but confirms the medium risk level (4/7) and the presence of counterparty risk. The fund tracks a well-diversified US equity index (S&P 500 Equal Weight), which is straightforward, but the synthetic replication and swap usage make the product complex under MiFID II rules. There is no leverage or capital protection mechanism. Therefore, despite the straightforward underlying index, the synthetic swap structure and counterparty risk drive the classification as complex."
}