{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Total Return Swaps",
        "Derivatives for Investment Purposes"
    ],
    "classification": "complex",
    "supporting_data": "The HSBC Multi Factor Worldwide Equity UCITS ETF is classified as complex primarily due to its use of total return swaps and derivatives for investment purposes, which introduces counterparty risk and potential leverage effects. While the fund primarily uses physical replication, the KIID explicitly states that up to 10% of assets may be allocated to total return swaps and contracts for difference, though not expected to exceed 5%. Additionally, derivatives are employed for both efficient portfolio management and investment purposes, which adds layers of complexity beyond simple index tracking. The fund's active management strategy, deviation from benchmark weightings, and exposure to emerging markets further contribute to its complexity. The risk profile is categorized as level 6, indicating high volatility and potential for significant fluctuations. While the fund does not employ leverage or inverse strategies, the combination of derivative usage and active management techniques makes it unsuitable for classification as non-complex under MiFID II.",
    "confidence": 85
}