{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via swap agreement",
        "Counterparty risk exposure",
        "Collateralized swap structure",
        "High risk rating (6/7)",
        "Complex underlying index exposure",
        "No capital protection"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares FAANG ETP is a collateralized Exchange Traded Product that seeks to replicate the Solactive FAANG Equal Weight Index via a swap agreement with Natixis. The product explicitly states it is backed by a swap, with collateral held at an independent custodian, indicating synthetic replication. The PRIIP KID and factsheet confirm the use of a swap provider and collateralized structure, with no leverage or inverse exposure. The product carries a high risk rating of 6 out of 7, reflecting significant market and counterparty risks. The product is not UCITS compliant and is intended for investors with specific knowledge and experience, highlighting complexity. There is no capital protection or principal guarantee. The use of a swap exposes investors to counterparty risk, and the product's complexity is further underscored by the collateralized swap structure and the nature of the underlying index. Costs include swap-related fees embedded in the ongoing costs. These factors combined lead to a classification of 'complex' under MiFID II, despite the absence of leverage or inverse exposure, because synthetic replication via swaps and counterparty risk are key complexity drivers."
}