{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": [
        "Unfunded Total Return Swaps",
        "Counterparty Risk Exposure"
    ],
    "classification": "complex",
    "supporting_data": "The iShares S&P 500 Swap UCITS ETF uses unfunded total return swaps as its primary replication method, which introduces significant counterparty risk and complexity. The KIID explicitly states that the fund invests in financial derivative instruments (FDIs), particularly unfunded total return swaps, to achieve its investment objective. This synthetic replication method, combined with the reliance on swap counterparties to deliver the benchmark performance, creates a layer of complexity that goes beyond simple physical replication. Additionally, the fund's risk profile is rated at level 6 out of 7, indicating higher risk, and the KIID highlights extensive derivative-related risks, including the potential for increased counterparty risk exposure. The use of swaps and the associated risks, such as the spread between swap pricing and benchmark pricing, further contribute to the complexity. While the fund does not employ leverage or inverse strategies, the synthetic nature of its replication and the reliance on derivatives for performance tracking make it a complex instrument under MiFID II regulations.",
    "confidence": 90
}