{
    "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",
        "Emerging markets equity exposure",
        "Use of derivatives integral to strategy"
    ],
    "classification": "complex",
    "supporting_data": "The Amundi MSCI Emerging Markets II UCITS ETF Acc is a UCITS-compliant ETF that tracks the MSCI Emerging Markets Net Total Return Index using an indirect replication method via over-the-counter total return swap contracts. The KIID and PRIIPs KID explicitly state that derivatives, specifically total return swaps, are integral to the investment strategy, exposing the fund to counterparty risk. The replication method is synthetic, not physical, confirmed by the factsheet. There is no leverage or inverse exposure. The fund invests in emerging markets equities, which carry higher political, legal, and liquidity risks. The risk profile is medium (4/7), reflecting equity market risk and counterparty risk from swaps. Costs are straightforward with no performance fees, but swap usage implies derivative costs. The PRIIPs KID does not include a comprehension warning but highlights counterparty and liquidity risks. The synthetic replication and swap usage are the primary drivers of complexity under MiFID II, as they introduce derivative counterparty risk and reduce transparency compared to physical replication. The fund\u2019s risk profile aligns with a medium risk equity product but the synthetic structure and swap counterparty exposure classify it as complex under MiFID II rules."
}