{
    "type": "ETF",
    "ucits": true,
    "fund_name": "AMUNDI JPX-NIKKEI 400 UCITS ETF - DAILY HEDGED USD",
    "investment_objective": "Track the performance of JPX-Nikkei 400 Index with minimized tracking error",
    "primary_asset_class": "Equity",
    "geographic_focus": "Japan",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via total return swaps",
        "Counterparty risk exposure",
        "Currency hedging strategy using derivatives"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses an indirect replication method via total return swaps (financial derivative instruments) to achieve exposure to the JPX-Nikkei 400 Index. The KIID and PRIIPs KID explicitly state that derivatives are integral to the investment strategy, confirming swap usage. The fund is UCITS compliant but synthetic replication and counterparty risk are clearly disclosed. There is no leverage or inverse exposure, and the risk rating is moderate (4/7). The fund employs currency hedging which adds derivative complexity. The underlying index is a broad Japanese equity index, which is straightforward, but the use of total return swaps and counterparty risk exposure are key complexity drivers under MiFID II. Costs are simple with no performance fees, but swap fees are implicit in the derivative usage. No capital protection or structured features are present. The PRIIPs KID does not include a comprehension warning but highlights counterparty and liquidity risks. Overall, the synthetic replication via total return swaps and associated counterparty risk make this ETF complex under MiFID II despite a moderate risk profile and no leverage."
}