{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Amundi S&P 500 II UCITS ETF CHF Hedged Dist",
    "investment_objective": "Track the S&P 500 Net Total Return Index (net dividends reinvested) in USD while minimizing tracking error, with CHF currency hedging",
    "primary_asset_class": "Equity",
    "geographic_focus": "United States",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via OTC swap",
        "Counterparty risk",
        "Currency hedging via derivatives"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses indirect replication through an over-the-counter swap contract (financial derivative instrument) with counterparties such as Morgan Stanley Bank AG and Societe Generale, as explicitly stated in the KIID and factsheet. The fund invests in a diversified portfolio of international equities whose performance is swapped against the benchmark index performance. The replication method is synthetic, not physical. The fund employs a daily CHF currency hedging strategy embedded in the product, which adds derivative complexity. Counterparty risk is explicitly disclosed, with exposure capped at 10% of total assets per counterparty. The risk profile is medium-high (5/7), reflecting market risk and derivative-related risks including leverage risk, valuation risk, and liquidity risk. There is no explicit leverage or inverse exposure, and derivatives are used as an inherent part of the investment strategy (not merely for risk management), so derivatives are marked false only because they are not used for risk management but as core replication. Costs are straightforward with a low ongoing charge (0.07%) and no performance fees. The underlying assets are liquid US equities, but the synthetic swap structure and counterparty exposure drive the complexity classification under MiFID II. The PRIIPs KID does not carry a specific comprehension warning but confirms the medium-high risk and counterparty risk. The fund is UCITS compliant. Overall, the synthetic replication via OTC swaps and embedded currency hedging make this ETF complex under MiFID II despite its straightforward equity exposure and low leverage.",
    "risk_level": 5
}