{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Invesco FTSE 250 UCITS ETF",
    "investment_objective": "To achieve the total return performance of the FTSE 250 Index less fees, expenses and transaction costs",
    "primary_asset_class": "Equity",
    "geographic_focus": "United Kingdom (UK mid-cap companies)",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Synthetic replication",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses unfunded swap agreements to synthetically replicate the FTSE 250 Index performance. The Fund holds a basket of equities that do not fully replicate the index and swaps the performance of these equities for the index return. The use of unfunded swaps introduces counterparty risk, as explicitly disclosed in the KIID and PRIIPs KID. The replication method is synthetic, not physical. There is no leverage or inverse exposure. The underlying assets are equities, but the synthetic structure and swap usage increase complexity. The risk rating is 6 out of 7, indicating a relatively high risk profile consistent with the synthetic structure and counterparty exposure. The PRIIPs KID confirms the medium risk rating (4 out of 7) and highlights counterparty risk and reliance on swap counterparties. The monthly factsheet confirms the swap fee (0.10% p.a.) and synthetic replication method. No capital protection or structured features are present. The ETF is UCITS compliant. The presence of unfunded swaps and synthetic replication classifies this ETF as complex under MiFID II rules, despite the absence of leverage or complex underlying assets like contingent bonds.",
    "risk_level_assessment": "The fund's risk rating of 6 (KIID) and 4 (PRIIPs KID) reflects the elevated risk due to synthetic replication and counterparty exposure. This aligns with the MiFID II complexity classification, as the synthetic structure and swap usage increase the difficulty for retail investors to fully understand the product risks."
}