{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Covered Call Option Strategy",
    "classification": "complex",
    "supporting_data": "The REX Tech Innovation Income & Growth UCITS ETF invests primarily in equities of technology companies and employs an active management approach. The fund uses covered call option strategies (traditional covered call or covered call spread) on underlying securities to generate additional income. This use of options introduces derivative exposure that is inherent to the investment strategy rather than solely for risk management. The KIID explicitly discusses risks related to derivatives, including the possibility of unlimited loss from selling call options and the unpredictable behavior of derivatives. There is no indication of synthetic replication, swap agreements, or leverage. The replication method is physical, investing directly in underlying equities. The risk profile is moderate (category 4), reflecting the derivative strategy and sector concentration risk. Although the fund is UCITS compliant and does not use leverage or swaps, the embedded option strategies and associated derivative risks classify it as complex under MiFID II. The complexity arises from the derivative option strategies, potential for significant tracking error, and the need for specific investment knowledge to understand the risks involved."
}