{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "synthethic",
        "ucits": true,
        "type": "ETF",
        "complex_factors": "The ETF uses unfunded swaps to replicate the MSCI World Index. This synthetic replication introduces counterparty risk. The underlying index is transparent.",
        "classification": "complex",
        "supporting_data": "The Invesco MSCI World UCITS ETF is classified as complex. The primary reason is the use of 'unfunded swaps' for replicating the index's performance, which is a form of synthetic replication. This approach introduces counterparty risk, where the ETF is reliant on the counterparty to continuously deliver the performance of the benchmark in line with the swap agreements. While the KID mentions that the Index is designed to measure the performance of the large and mid cap segments across 23 Developed Markets (DM) countries, and that the index is rebalanced quarterly, the use of swaps as a method of replicating the performance makes the asset complex as retail investors may not easily understand the risks associated with swaps. Referencing ESMA guidelines, any use of derivatives increases asset complexity. Section 2.2 of the ESMA document, which highlights that firms must clearly communicate the distinction between advisory and non-advisory services. Section 2.1 of the ESMA document details the policies and processes firms must set up to identify complex investment products. In this situation the ETF utilizes derivatives. Additionally, the Share Class is in risk category 6, the use of derivatives for index tracking is a noted risk and is mentioned in the KID documentation."
    }
}