{
    "name": "Invesco MSCI Emerging Markets UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": [
        "Unfunded Swaps",
        "Counterparty Risk",
        "Synthetic Replication"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses unfunded swaps to achieve its investment objective, which introduces counterparty risk and complexity in tracking the MSCI Emerging Markets Index. The KIID explicitly states that the Fund will use unfunded swaps, which are derivative instruments, to exchange the performance of a basket of equities for the performance of the index. This synthetic replication method, along with the associated counterparty risk, makes the product complex under MiFID II. Additionally, the risk category is 6, indicating higher risk, and the document highlights the reliance on counterparties to deliver the benchmark performance, which adds to the complexity.",
    "confidence": 95,
    "risk_level": 6,
    "counterparty_risk": true,
    "benchmark_complexity": "moderate",
    "liquidity": "high",
    "additional_notes": "While the ETF is UCITS compliant and has a straightforward objective of tracking the MSCI Emerging Markets Index, the use of synthetic replication via unfunded swaps introduces complexity that requires investors to understand counterparty risk and the mechanics of swap agreements. The PRIIPs document and factsheet confirm the swap fee and the synthetic replication method, reinforcing the classification as complex."
}