{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Xtrackers MSCI World Swap UCITS ETF",
    "investment_objective": "To reflect the performance of the MSCI Total Return Net World Index via a swap-based replication",
    "primary_asset_class": "Equity",
    "geographic_focus": "Global developed markets (23+ developed countries)",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via total return swaps",
        "Counterparty risk exposure",
        "Derivative instruments inherent to strategy"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses synthetic replication through total return swaps with one or more counterparties to achieve its investment objective, as explicitly stated in both the KIID and PRIIPs KID. The fund does not physically hold the underlying equities but gains exposure via swap agreements, which introduces counterparty risk. The risk profile is relatively high (category 6 in KIID, 4/7 in PRIIPs), reflecting potential volatility and derivative risks. There is no leverage or inverse exposure, and the fund is UCITS compliant. The factsheet confirms indirect replication (swap) methodology and highlights counterparty risk. The use of swaps and derivatives as an inherent part of the investment strategy, rather than solely for risk management, triggers MiFID II complexity classification. No capital protection or structured features are present. Costs are straightforward with no performance fees, but derivative-related risks and counterparty exposure remain significant complexity drivers. The PRIIPs KID does not carry a specific comprehension warning but confirms derivative and counterparty risks. Overall, the synthetic swap-based structure and counterparty exposure make this ETF complex under MiFID II rules despite its straightforward equity index objective and absence of leverage."
}