{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via total return swap",
        "Counterparty risk exposure",
        "Use of derivatives inherent to strategy"
    ],
    "classification": "complex",
    "supporting_data": "The UBS MSCI China A SF UCITS ETF uses synthetic replication through a fully funded total return swap with UBS AG as counterparty, as explicitly stated in the KIID and confirmed by the factsheet. The Fund invests in financial derivative instruments (FDIs) with UBS as counterparty, swapping the index performance to the Fund and swapping the securities' performance back to UBS. This swap structure is a funded swap, collateralized by G10 government bonds and supranational bonds, but still exposes investors to counterparty risk, which is highlighted as a material risk in the KIID with a risk rating of 5 out of 7. The Fund does not employ leverage or inverse exposure, and the risk profile is medium-high (category 5). The derivatives are used as an inherent part of the investment strategy (synthetic replication), not merely for risk management, so 'derivatives' is true. There are no capital protection or structured features, no leverage, and no complex underlying assets like contingent convertible bonds. The PRIIPs KID confirms the complexity by highlighting counterparty risk and the use of swaps. The factsheet confirms the synthetic replication method and collateral arrangements. Therefore, under MiFID II, the ETF is classified as complex due to its synthetic replication via swaps and associated counterparty risk, which may not be easily understood by retail investors despite the fund's UCITS status and medium risk profile."
}