{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Unfunded Swaps",
        "Synthetic Replication",
        "Counterparty Risk"
    ],
    "classification": "complex",
    "supporting_data": "The Invesco JPX-Nikkei 400 UCITS ETF uses unfunded swap agreements as a core part of its investment strategy to synthetically replicate the performance of the JPX-Nikkei 400 Net Total Return Index. The Fund holds a basket of equities that do not fully replicate the index and swaps the performance of these equities for the index performance via swap contracts. The KIID explicitly states the use of unfunded swaps and highlights counterparty risk associated with these derivatives. The PRIIPs KID confirms the synthetic replication method and the reliance on swap counterparties to deliver index performance. The monthly factsheet further validates the synthetic replication approach, swap fee charges, and the presence of counterparty risk. There is no leverage or inverse exposure, and derivatives are used inherently in the strategy rather than solely for risk management. The risk profile is medium-high (risk category 6 in KIID, 4/7 in PRIIPs), reflecting the complexity introduced by synthetic replication and counterparty exposure. No capital protection or structured features are present. Costs include swap fees in addition to the ongoing charge. The synthetic replication and unfunded swap usage, combined with counterparty risk and the complexity of the index hedging via FX forward contracts, drive the classification as a complex financial instrument under MiFID II."
}