{
    "ucits": false,
    "type": "ETC",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Derivatives, Synthetic replication, Commodity futures exposure, Daily reset compounding effect",
    "classification": "complex",
    "supporting_data": "The WisdomTree Gold 3x Daily Leveraged product is an Exchange Traded Commodity (ETC), not a UCITS ETF, designed to provide 3 times leveraged exposure to gold via the Solactive Gold Commodity Futures SL Index. It uses commodity futures contracts and derivatives to achieve this leverage, with a daily reset of the leverage factor, which introduces a compounding effect making the product's performance over periods longer than one day deviate significantly from the index multiplied by three. The product is fully collateralised but involves significant derivative use and leverage, which are key complexity drivers under MiFID II. The use of futures and daily leverage reset means the replication is synthetic in nature, with embedded derivative risk and leverage beyond UCITS limits. The product is intended for informed retail investors with specific knowledge or experience, reflecting its complexity. The risk indicator is at the highest level (7/7), indicating very high risk. The product documentation includes a comprehension alert stating it is not simple and may be difficult to understand, consistent with MiFID II requirements for complex products. According to MiFID II Article 57 and ESMA guidelines, products using derivatives integral to their strategy, with leverage and synthetic replication, are classified as complex. The presence of leverage, derivative use beyond efficient portfolio management, and synthetic replication all confirm the complex classification. This product is not UCITS compliant and is an ETC, which under MiFID II is generally complex if it uses derivatives and leverage as core features. Therefore, the classification is complex."
}