{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Total Return Swaps",
        "Contracts for Difference"
    ],
    "classification": "complex",
    "supporting_data": "The HSBC MSCI WORLD UCITS ETF is classified as 'complex' primarily due to its use of total return swaps and contracts for difference, even though these are limited to 10% of assets and not expected to exceed 5%. The KIID explicitly mentions the use of these derivative instruments, which introduces counterparty risk and potential divergence from the underlying index performance. While the ETF primarily uses physical replication with optimization techniques, the inclusion of swaps and derivatives for investment purposes (beyond mere efficient portfolio management) triggers the complexity classification under MiFID II. The risk level is categorized as 6 out of 7, indicating higher volatility and potential for significant tracking error. Additionally, the recommendation that the fund may not be suitable for investors with a time horizon of less than 5 years further supports the complexity designation.",
    "confidence": 85
}