{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC USA SCREENED EQUITY UCITS ETF",
    "investment_objective": "Track the FTSE USA ESG Low Carbon Select Index, investing in shares of companies in the Index with ESG and low carbon focus",
    "primary_asset_class": "Equity",
    "geographic_focus": "United States",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Counterparty Risk",
        "Derivatives for efficient portfolio management"
    ],
    "classification": "complex",
    "supporting_data": "The Fund primarily uses physical replication investing directly in shares of the Index constituents. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, with expected usage not exceeding 5%. The Fund also uses derivatives for efficient portfolio management and risk management purposes, but these are not inherent to the investment strategy. The presence of total return swaps and contracts for difference, even at limited levels, introduces counterparty risk and derivative complexity. The Risk and Reward Indicator is high (category 6), reflecting high price fluctuations and derivative-related risks. The Fund is UCITS compliant and invests mainly in liquid equity securities, but the use of swaps and derivatives, counterparty risk disclosures, and securities lending (up to 30%, expected max 25%) contribute to complexity under MiFID II. There is no leverage or inverse exposure. The PRIIPs KID confirms medium-high risk (5/7) and highlights counterparty, derivatives, investment leverage, and liquidity risks. The monthly factsheet confirms physical full replication as the primary method, with derivative use limited and for efficient management rather than core strategy. The Fund does not have capital protection or structured features. Overall, the limited but present use of total return swaps and contracts for difference, combined with counterparty risk and derivative risk disclosures, leads to classification as complex under MiFID II despite physical replication being the main method.",
    "risk_level_assessment": "The Fund is rated risk category 6 out of 7 in the KIID, indicating high risk and volatility. The PRIIPs KID rates it as 5 out of 7 (medium-high risk). The elevated risk rating aligns with the presence of derivative instruments (swaps and contracts for difference), counterparty risk, and securities lending, which increase complexity and risk beyond a straightforward physical equity ETF. The risk profile supports the complex classification under MiFID II."
}