{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via total return swaps",
        "Counterparty risk exposure",
        "Use of derivatives for index exposure and currency hedging"
    ],
    "classification": "complex",
    "supporting_data": "The Xtrackers MSCI World Swap UCITS ETF uses synthetic replication through total return swaps to achieve its investment objective, as explicitly stated in the KIID and factsheet. The fund does not invest directly in the underlying index components but gains exposure via swap agreements with counterparties, exposing investors to counterparty risk. The fund also uses derivatives to hedge currency risk between the index currency and the share class currency. There is no leverage or inverse exposure. The risk profile is medium to high (risk category 4-6 in KIID and 4 in PRIIPs KID), reflecting the volatility and derivative usage. The presence of funded or unfunded swap structures and counterparty risk, combined with synthetic replication, are key MiFID II complexity indicators. The fund is UCITS compliant but the synthetic swap structure and counterparty exposure mean it is classified as complex under MiFID II. No capital protection or structured features are present. Costs are straightforward with no performance fees but include swap-related costs embedded in tracking error. The PRIIPs KID does not carry a specific comprehension warning but confirms derivative and counterparty risks. Overall, the synthetic replication and swap usage are the main drivers of complexity classification despite the fund\u2019s straightforward equity index exposure and absence of leverage."
}