{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded total return swaps",
        "Counterparty risk",
        "Synthetic replication",
        "Derivative instruments exposure"
    ],
    "classification": "complex",
    "supporting_data": "The iShares S&P 500 Swap UCITS ETF uses synthetic replication via unfunded total return swaps to achieve its investment objective, as explicitly stated in both the KIID and PRIIPs KID documents. The Fund invests in financial derivative instruments (FDIs) including swaps, options, and non-deliverable futures, with the primary method being unfunded total return swaps. The Fund holds a portfolio of equities whose returns are paid to swap counterparties to meet payment obligations, indicating counterparty exposure and derivative counterparty risk. The risk profile is rated 6 out of 7, reflecting medium-high risk largely due to derivative and counterparty risks. There is no leverage or inverse exposure mentioned. The Fund is UCITS compliant but the synthetic structure and swap usage inherently introduce complexity under MiFID II. The monthly factsheet confirms the synthetic swap methodology and highlights counterparty risk and derivative sensitivity. Costs are straightforward with no performance fees, but securities lending revenue sharing is noted. The complexity arises primarily from the synthetic replication via unfunded total return swaps and associated counterparty risk, which may not be easily understood by retail investors, fulfilling MiFID II criteria for classification as a complex financial instrument."
}