{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC FTSE 250 UCITS ETF",
    "investment_objective": "Track as closely as possible the returns of the FTSE 250 Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "United Kingdom",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of total return swaps up to 10%, securities lending, exposure to derivatives for efficient portfolio management",
    "classification": "complex",
    "supporting_data": "The Fund primarily uses physical replication investing directly in shares of FTSE 250 companies but may use total return swaps and contracts for difference up to 10% of assets, with expected usage below 5%. The Fund also engages in securities lending up to 30% of assets (expected below 25%). Derivatives are used mainly for efficient portfolio management and risk management, not for leverage. The risk profile is high (category 6), with explicit counterparty risk and derivatives risk disclosures. The Fund is UCITS compliant and invests in liquid, mid-cap UK equities. However, the presence of total return swaps and contracts for difference, even at limited levels, introduces counterparty risk and derivative complexity. According to MiFID II criteria, any use of swaps or contingent bonds mandates classification as complex. The PRIIPs KID confirms medium risk (4/7) but does not indicate leverage or inverse exposure. The monthly factsheet confirms physical replication as primary method and derivative use is limited and for risk management, but swap usage is present. No leverage or capital protection features are identified. Therefore, despite physical replication dominance and low derivative usage, the presence of total return swaps and contracts for difference triggers the complex classification under MiFID II.",
    "risk_level": 6
}