{
    "type": "ETP",
    "ucits": true,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Daily Reset Leverage",
        "Compounding Effect",
        "Futures Rolling",
        "Collateralised Debt Security",
        "High Risk Level 7"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree PHLX Semiconductor 3x Daily Leveraged product is a UCITS eligible Exchange Traded Product (ETP) that provides 3x leveraged exposure to the PHLX Semiconductor Sector Net Total Return Index. The product uses a fully collateralised structure and achieves its exposure through futures contracts referenced in the benchmark, implying synthetic replication rather than physical replication. The document explicitly states the presence of leverage (3x daily), daily reset of leverage with compounding effects, and the use of futures contracts with rolling, which introduces complexity such as roll costs and tracking deviations over periods longer than one day. The product is classified with the highest risk rating of 7 out of 7, indicating very high risk and complexity. The product is described as a certificated, registered, collateralised debt security, not a straightforward ETF with direct underlying securities. There is no mention of swap agreements or total return swaps, so swaps are marked false, but derivatives usage is true due to futures and leverage. The product is intended for informed investors with specific knowledge, highlighting complexity and suitability concerns. The risk disclosures warn about potential total loss, currency risk, and the impact of compounding and volatility on returns. Costs include significant transaction costs (3.74% annually) reflecting active management of futures and rolling. These factors combined\u2014leverage, synthetic exposure via futures, daily reset and compounding, collateralised debt security structure, and high risk rating\u2014drive the classification as complex under MiFID II."
}