{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "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, which are forms of derivatives that introduce counterparty risk and potential tracking error complexities. While the ETF primarily uses physical replication, the KIID explicitly states that the fund may invest up to 10% of its assets in total return swaps and contracts for difference, though it is not expected to exceed 5%. This derivative usage, even if limited, introduces additional layers of risk and complexity that may not be easily understood by retail investors. Additionally, the fund's risk profile is categorized as level 6, indicating high volatility and potential for significant fluctuations. The presence of these derivative instruments, combined with the high-risk classification, aligns with MiFID II criteria for complexity, as it involves risks that may not be fully captured by standard risk indicators and requires a deeper understanding of derivative mechanics and counterparty risks.",
    "confidence": 90
}