{
    "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 usage",
    "classification": "complex",
    "supporting_data": "The Fund aims to track the EURO STOXX 50 Index primarily through physical full replication of the underlying shares. However, the KIID, PRIIPs KID, and monthly factsheet confirm that 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 use of total return swaps, even at a limited level, introduces counterparty risk and derivative exposure that is inherent to the strategy rather than solely for risk management. The Fund also engages in securities lending up to 30% of assets, which adds operational complexity. There is no leverage or inverse exposure, and the Fund is UCITS compliant. The risk profile is medium-high (category 5 or 6 in different documents), reflecting market volatility and derivative usage. The replication method is physical full replication, but the presence of swap agreements (total return swaps) triggers MiFID II complexity classification. The Fund does not use leverage or inverse strategies, nor does it have capital protection or structured features. The underlying assets are large-cap European equities, which are liquid and transparent. The complexity arises primarily from the use of derivatives (swaps) as an inherent part of the investment strategy, not just for hedging. Therefore, under MiFID II, the Fund is classified as complex due to swap usage and associated counterparty risk, despite its physical replication and straightforward index tracking objective."
}