{
    "type": "ETP",
    "ucits": true,
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Synthetic replication, Derivative use, Daily reset compounding, Leveraged exposure to FTSE MIB",
    "classification": "complex",
    "supporting_data": "The WisdomTree FTSE MIB 3x Daily Leveraged product is a UCITS-eligible Exchange Traded Product (ETP) that provides 3 times leveraged exposure to the FTSE MIB index through a synthetic replication method involving derivatives (futures contracts). It uses daily leverage reset, which introduces a compounding effect that can cause the product's performance over periods longer than one day to deviate significantly from the simple 3x multiple of the index return. The product is fully collateralised but involves derivative instruments integral to its investment objective, exposing investors to counterparty and collateral risks. The product's structure, use of leverage beyond typical UCITS limits, and synthetic replication method make it difficult for retail investors with basic knowledge to understand the risks and payoff profile. The PRIIP KID explicitly states that the product is not simple and may be difficult to understand, confirming its complex nature. According to MiFID II Article 254, Delegated Regulation EU 2017/565 Article 57, and ESMA guidelines, such features classify the product as complex. The presence of leverage, synthetic replication, and derivative use integral to the strategy, combined with the daily reset and compounding effects, are key complexity drivers. Therefore, despite being UCITS eligible, this ETF is classified as complex under MiFID II."
}