{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The Future of Defence UCITS ETF is a UCITS-compliant ETF that physically replicates the EQM Future of Defence Index by investing directly in the underlying securities of publicly listed companies headquartered in NATO+ countries within the defence sector. The KIID and PRIIPs KID documents explicitly state the use of a passive management, index replication methodology investing 'in all of the securities comprising the Index' insofar as practicable, indicating physical replication rather than synthetic. There is no mention of synthetic replication, swap agreements, total return swaps, or derivative instruments as part of the investment strategy. The fund does not employ leverage, inverse or amplified exposure, nor does it invest in complex underlying assets such as contingent convertible bonds or CLOs. The risk profile is moderate (5 out of 7), consistent with sector concentration and market risk, but without derivative or counterparty risk disclosures. Costs are straightforward with a single ongoing charge (0.49%) and no performance fees or swap fees. The PRIIPs KID includes a comprehension warning stating the product 'is not simple and may be difficult to understand,' which likely relates to the sector concentration and geopolitical risk rather than structural complexity. No capital protection or structured features are present. The fund uses securities lending but this is a common practice and does not add complexity under MiFID II. Overall, the absence of synthetic replication, leverage, derivatives as an inherent strategy element, or complex underlying assets leads to a classification of non-complex under MiFID II."
}