{
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Synthetic replication using swaps",
        "Counterparty risk exposure",
        "Potential tracking error"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses unfunded swaps for synthetic replication, which introduces counterparty risk and potential tracking error. While the underlying index (S&P Select Sector Capped 20% Materials Index) is relatively straightforward, the use of swaps and the fact that the fund purchases securities not contained in the index make the structure more complex. The PRIIPs KID and factsheet confirm the synthetic replication method and swap usage, which are key complexity indicators under MiFID II. The fund's risk category 6 (out of 7) also suggests higher complexity. The fact that the fund may not be suitable for all retail investors (as implied by the PRIIPs KID) further supports the 'complex' classification.",
    "confidence": 90
}