{
    "fund_name": "HSBC MSCI Emerging Markets Small Cap Screened UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Derivative usage (up to 10% in total return swaps and contracts for difference)",
        "Counterparty risk from derivative exposure",
        "Emerging markets focus with higher volatility",
        "Potential for tracking error due to index replication challenges"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF primarily uses physical replication to track the MSCI Emerging Markets Small Cap Universal Screens Index. While it has permission to use derivatives (up to 10% in total return swaps and contracts for difference) for efficient portfolio management, this is not expected to exceed 5%. The fund's main complexity factors are its emerging markets focus and potential tracking error, but these do not meet MiFID II's criteria for complexity. The derivative usage appears to be for risk management rather than as an inherent part of the strategy. The fund is UCITS-compliant and has a straightforward investment objective, making it suitable for retail investors.",
    "confidence": 85
}