{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded swaps",
        "Synthetic replication",
        "Counterparty risk",
        "Non-physical replication",
        "Complex index weighting"
    ],
    "classification": "complex",
    "supporting_data": "The Invesco STOXX Europe 600 Optimised Health Care UCITS ETF uses synthetic replication via unfunded swap agreements with approved counterparties to achieve its investment objective. The Fund holds a basket of equities that do not fully replicate the index and swaps the performance of these equities for the performance of the STOXX Europe 600 Optimised Health Care Index. This introduces counterparty risk and derivative exposure inherent to the swap structure. The replication method is explicitly synthetic, confirmed by the factsheet and KIID. There is no leverage or inverse exposure, and derivatives are used as an inherent part of the investment strategy rather than solely for risk management, so 'derivatives' is marked false per instructions. The risk profile is medium-high (risk category 6 in KIID), reflecting the complexity and risks associated with synthetic ETFs. The index tracked applies liquidity caps and hybrid weighting methodologies, adding complexity to the underlying benchmark. No capital protection or structured features are present. Costs are straightforward with no performance fees, but swap fees and counterparty risk are relevant. The PRIIPs KID does not include a comprehension warning but confirms the use of swaps and counterparty risk. Overall, the use of unfunded swaps and synthetic replication, combined with counterparty risk and complex index construction, drives the classification as a complex financial instrument under MiFID II."
}