{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "physical",
        "ucits": true,
        "type": "ETF",
        "complex_factors": "The ETF uses swaps to replicate the index (MarketVectoru2122 US Listed Oil Services 10% Capped Index), introducing counterparty risk and potentially making the structure difficult for retail investors to understand. The sector focus on oil services also introduces sector concentration risk and the potential for high market volatility as demonstrated by a KID risk rating of 7/7. The use of derivative instruments like swaps means that an appropriateness assessment needs to be undertaken as ESMA guidelines indicate any use of derivatives renders an instrument complex. ",
        "classification": "complex",
        "supporting_data": "The VanEck Oil Services UCITS ETF (the 'Fund') uses the investment objective to replicate the price and performance, before fees and expenses, of the MarketVectoru2122 US Listed Oil Services 10% Capped Index. To achieve this, the Fund invests in underlying equity securities, but also 'may also (or alternatively) invest in financial derivative instruments (FDIs) which relate to the Index or constituents of the Index.' These FDIs include swaps (including equity swaps and swaps on the Index), currency forwards and non-deliverable forwards (NDFs), which contribute to the classification as complex due to counterparty and collateral risk. The KID document does not indicate whether these FDIs are being used for efficient portfolio management (EPM) or as a central part of the investment objective. Due to this, and the use of swaps, the fund is considered complex, as any use of derivatives, particularly swaps, makes the ETF's structure, risks, and payoff potentially hard to understand by retail investors with basic knowledge, as described by the MiFID II rules, the ESMA guidance and CESR/09-295. The Fund's high risk rating of 7/7 indicates high market volatility and risk, and this factor adds to the complexity."
    }
}