{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI USA CLIMATE PARIS ALIGNED UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": "Swaps usage",
    "classification": "complex",
    "supporting_data": "The Fund aims to track the MSCI USA Climate Paris Aligned Index using primarily physical replication of underlying equities. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, and up to 10% in other funds. The use of total return swaps, even if limited, and contracts for difference indicates synthetic elements in the replication strategy. The Fund is UCITS compliant and does not employ leverage or inverse strategies. The risk profile is medium-high (5 out of 7), reflecting market volatility and derivative usage. The Fund discloses counterparty risk related to derivatives and swap counterparties. The monthly factsheet confirms physical replication as the primary method but acknowledges derivative usage for gaining exposure when direct investment is not possible. The derivatives are not used for leverage but as part of the investment strategy, which under MiFID II rules classifies the Fund as complex. There are no capital protection or structured product features. Costs are straightforward with no performance fees, but swap fees and derivative costs are implicit. The PRIIPs KID does not carry a specific comprehension warning but highlights derivative and counterparty risks. Overall, the presence of swap agreements and derivative instruments for investment purposes, even at limited levels, triggers the complex classification under MiFID II."
}