{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Unfunded Swaps",
    "classification": "complex",
    "supporting_data": "The Invesco MSCI Kuwait UCITS ETF uses unfunded swap agreements to achieve its investment objective, explicitly stated in the KIID and PRIIPs KID. The Fund holds a basket of equities that do not fully replicate the index and swaps the performance of these equities for the MSCI Kuwait 20/35 Index performance. This synthetic replication method introduces counterparty risk and derivative exposure inherent to the swap contracts. There is no leverage or inverse exposure, and derivatives are used as an inherent part of the strategy rather than solely for risk management. The risk profile is medium-high (risk category 6 in KIID, 4 in PRIIPs KID), reflecting the complexity and risks associated with synthetic replication and emerging market exposure. Costs include a swap fee (0.40% p.a.) in addition to the ongoing charge (0.50% p.a.), indicating derivative-related costs. No capital protection or structured features are present. The synthetic replication, use of unfunded swaps, and counterparty risk exposure are the primary drivers for classifying this ETF as complex under MiFID II, despite the absence of leverage or complex underlying assets. The PRIIPs KID does not carry a specific comprehension warning but confirms the medium risk and derivative counterparty risk. The factsheet confirms the synthetic replication and swap fee, validating the swap usage and complexity factors."
}