{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded swaps",
        "Synthetic replication",
        "Counterparty risk",
        "Non-index securities held"
    ],
    "classification": "complex",
    "supporting_data": "The Invesco Russell 2000 UCITS ETF uses synthetic replication via unfunded swap agreements with approved counterparties to achieve its investment objective of tracking the Russell 2000 Index. The Fund holds a basket of equities and equity-related securities that do not fully replicate the index, and swaps the performance of these holdings for the index performance. The use of unfunded swaps introduces counterparty risk, explicitly disclosed in the KIID and factsheet. There is no leverage or inverse exposure, and derivatives are used inherently as part of the investment strategy rather than solely for risk management. The risk profile is high (risk category 7 in KIID, 5/7 in PRIIPs), reflecting the volatility of small-cap equities and synthetic structure. Costs are straightforward with no performance fees, but swap fees and counterparty risk are present. The synthetic replication and swap usage, combined with counterparty exposure and the holding of non-index securities, drive the MiFID II classification as complex despite the absence of leverage or structured capital protection features."
}