{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded total return swaps",
        "Counterparty risk",
        "Use of derivatives for index replication",
        "Sector concentration in Video Games & Esports companies"
    ],
    "classification": "complex",
    "supporting_data": "The Global X Video Games & Esports UCITS ETF uses synthetic replication via total return 'unfunded' OTC swaps to track the Solactive Video Games & Esports v2 Index. The KIID explicitly mentions the use of financial derivative instruments (FDIs), including unfunded OTC swaps and exchange-traded equity futures, as part of the investment strategy. This introduces counterparty risk and derivative-related risks, which are highlighted in the risk disclosures. The fund does not employ leverage or inverse strategies, but the presence of swaps and derivatives as inherent elements of the replication method classifies it as complex under MiFID II. The risk profile is high (category 6 in KIID, 5 in PRIIPs), reflecting volatility and derivative usage. Costs are straightforward with no performance fees, but securities lending is used. The PRIIPs KID confirms the synthetic replication and derivative use, with no capital protection or leverage. The fund invests in a concentrated sector of video games and esports companies, which may add to complexity due to sector-specific risks. No references to capital protection, leverage, or structured products were found. The synthetic replication and swap usage are the primary drivers of complexity classification despite the fund's UCITS status and absence of leverage."
}