{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Invesco Consumer Staples S&P US Select Sector UCITS ETF",
    "investment_objective": "To achieve the total return performance of the S&P Select Sector Capped 20% Consumer Staples Index, less fees, expenses and transaction costs.",
    "primary_asset_class": "Equity",
    "geographic_focus": "United States",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Synthetic replication",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The Fund uses unfunded swaps to achieve its investment objective, swapping the performance of a basket of equities held by the Fund for the performance of the S&P Select Sector Capped 20% Consumer Staples Index. The Fund explicitly states use of synthetic replication and swap agreements with approved counterparties without collateral (unfunded swaps). The Fund holds equities that are not contained in the index, indicating a synthetic replication approach rather than physical replication. The risk disclosures highlight counterparty risk related to derivatives and swaps. The risk category is 6 out of 7, indicating a relatively high risk profile. There is no leverage or inverse exposure. The Fund is UCITS compliant. The PRIIPs KID confirms the use of unfunded swaps and the reliance on counterparties to deliver index performance. The monthly factsheet confirms synthetic replication and swap usage, with no leverage or capital protection features. The complexity arises primarily from the synthetic replication method using unfunded swaps and the associated counterparty risk, which may not be easily understood by retail investors. There are no capital protection or structured features, and the underlying assets are equities, not complex bonds or structured products. Costs are straightforward with no performance fees and a low ongoing charge. Overall, the synthetic replication and swap usage drive the classification as complex under MiFID II despite the absence of leverage or complex underlying assets.",
    "risk_level_assessment": "The Fund's risk category is 6 out of 7, reflecting a higher risk profile consistent with the use of synthetic replication and counterparty risk. This aligns with the MiFID II complexity assessment, as higher risk ratings often correlate with complexity. The Fund does not use leverage or capital protection, but the synthetic swap structure and counterparty exposure elevate its complexity."
}