{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The HSBC MSCI World UCITS ETF is a UCITS-compliant ETF, which under MiFID II is generally presumed non-complex due to strict regulatory requirements ensuring diversification, liquidity, and transparency. The ETF uses physical replication with an optimization technique to track the MSCI World Index, investing directly or gaining exposure to shares of companies in the index. It may invest up to 10% of its assets in derivatives, but only for efficient portfolio management (EPM) purposes such as managing risk and costs, and this derivative use is limited and not integral to the investment objective. The ETF also engages in securities lending up to 30% of assets, but this is managed within UCITS rules and does not dominate the risk profile. There is no significant leverage beyond UCITS limits, no embedded derivatives, and the underlying index is transparent and well-documented. The risk profile reflects market volatility but not structural complexity. According to MiFID II Article 254 and Delegated Regulation EU 2017/565 Article 57, such an ETF meets the criteria for non-complex classification because it uses physical replication, limited derivative use for EPM, and has a straightforward structure understandable by retail investors with basic knowledge. Therefore, no comprehension alert is required in the PRIIPs KID. This assessment aligns with ESMA guidance that synthetic replication or significant derivative use integral to the strategy would render an ETF complex, which is not the case here. Hence, the ETF is classified as non-complex."
}