{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication",
        "Swap counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The UBS MSCI ACWI SF UCITS ETF uses synthetic replication via a total return swap with UBS AG, London Branch as counterparty. The fund does not invest directly in the underlying index securities but swaps the index performance with UBS in exchange for the performance of a basket of securities held by the fund. This swap is fully funded and collateralized with G10 government bonds, supranational bonds, and cash, but the fund is exposed to counterparty risk from UBS. There is no leverage or inverse exposure. The fund is UCITS compliant. The risk profile is medium-high (category 6 in KIID), driven mainly by counterparty risk and market volatility. The PRIIPs KID confirms the synthetic swap structure and highlights counterparty risk and the lack of capital protection. The monthly factsheet explicitly states the use of a fully funded total return swap and collateral management, confirming the synthetic replication method. No leverage or complex underlying assets such as contingent bonds are held. Derivatives are used as an inherent part of the investment strategy (swap), not merely for risk management, so derivatives are marked true for complexity purposes. The fund\u2019s complexity arises primarily from the synthetic replication and counterparty exposure, which may be difficult for retail investors to fully understand, thus classifying it as complex under MiFID II. There are no capital protection features, no leverage, and no inverse exposure. Costs are straightforward with a TER of 0.21% and no performance fees. The fund tracks a broad, liquid equity index (MSCI ACWI) but the synthetic structure and counterparty risk elevate complexity."
}