{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Derivatives",
        "Swaps",
        "Counterparty Risk"
    ],
    "classification": "complex",
    "supporting_data": "The HSBC FTSE 250 UCITS ETF is classified as 'complex' under MiFID II due to several key factors. While it 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, which introduces counterparty risk and derivative exposure. Additionally, the fund may use derivatives for efficient portfolio management, which, although not for leverage, still adds a layer of complexity. The presence of counterparty risk and derivative-related risks in the risk disclosures further supports this classification. The fund's risk level is categorized as 6, indicating high fluctuations, and the KIID includes warnings about derivative risks and tracking error, which are typical indicators of complexity. The fund's use of swaps, even if limited, and the potential for significant tracking error due to derivative usage, make it unsuitable for classification as non-complex.",
    "confidence": 85
}