{
    "type": "ETC",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via futures contracts",
        "Collateralised debt security structure",
        "Exposure to commodity futures with roll costs and contango effects",
        "Counterparty risk inherent in collateralised debt security",
        "Currency hedging complexity"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Zinc - EUR Daily Hedged product is a UCITS eligible Exchange Traded Commodity (ETC) structured as a fully collateralised debt security governed by Jersey law. It provides exposure to Zinc futures contracts through synthetic replication of the Bloomberg Zinc Sub Euro Hedged Daily Total Return Index. The product explicitly references futures contracts and the impact of rolling futures (roll costs, contango/backwardation), which are derivative instruments. The collateralised debt security structure implies counterparty risk and complexity beyond direct physical ownership. The KIID states the product is 'not simple and may be difficult to understand' and is intended for investors with specific knowledge or experience. The risk indicator is medium-high (5/7), reflecting the complexity and risks including currency risk and issuer credit risk. There is no leverage or inverse exposure, but the use of futures and collateralised debt security structure, along with currency hedging, introduces synthetic replication and derivative exposure. These factors meet MiFID II criteria for classification as a complex financial instrument despite the absence of leverage or inverse features."
}