{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Total Return Swap",
        "Synthetic Replication",
        "Counterparty Risk",
        "Currency Hedging"
    ],
    "classification": "complex",
    "supporting_data": "The AMUNDI JAPAN TOPIX UCITS ETF - DAILY HEDGED USD uses an indirect replication method via a total return swap, a financial derivative instrument, to achieve exposure to the TOPIX Index. The KIID and PRIIPs KID explicitly state that derivatives are integral to the Sub-Fund's investment strategy, confirming synthetic replication. The fund is UCITS compliant but involves counterparty risk due to the swap agreement. There is no leverage or inverse exposure, but the use of total return swaps and currency hedging introduces complexity. The risk profile is medium (4 out of 7), reflecting market and counterparty risks. The factsheet confirms synthetic replication and swap usage, with no leverage. The presence of total return swaps and derivative instruments as a core part of the investment strategy, along with counterparty risk and currency hedging, classifies this ETF as complex under MiFID II. Although the fund tracks a straightforward equity index (TOPIX), the synthetic structure and derivative use mean the product is not straightforward for retail investors to fully understand, fulfilling MiFID II complexity criteria."
}