{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS Core MSCI EMU UCITS ETF",
    "investment_objective": "Passive replication of MSCI EMU Index (Net Return) via direct investments and/or derivatives to gain exposure efficiently",
    "primary_asset_class": "Equity",
    "geographic_focus": "European Economic and Monetary Union (EMU) countries",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives (swaps) for efficient index exposure and counterparty risk",
    "classification": "complex",
    "supporting_data": "The fund primarily uses physical replication (full replication of MSCI EMU Index) as confirmed by the factsheet. However, the KIID and PRIIPs KID explicitly state that the fund may use derivatives, including OTC swaps, to gain exposure where direct replication is not possible or efficient. The use of OTC derivatives introduces counterparty risk, which is mitigated by collateral policies but remains a complexity factor. The PRIIPs KID also states the product is 'not simple and may be difficult to understand,' indicating complexity under MiFID II. There is no leverage or inverse exposure, and derivatives are used as an inherent part of the strategy, not merely for risk management, so 'derivatives' is marked false only if used for risk management, but here they are used for exposure. The risk profile is medium to high (risk category 5 in KIID, 4 in PRIIPs KID), reflecting equity market volatility rather than structural complexity. Costs are straightforward with a low TER and no performance fees. No capital protection or structured features are present. The fund is UCITS compliant. Overall, the presence of synthetic elements via OTC swaps and counterparty risk, despite predominant physical replication, leads to classification as complex under MiFID II rules.",
    "risk_level_assessment": "The fund's risk category is 5 (KIID) and 4 (PRIIPs KID), reflecting medium to high market volatility typical of equity ETFs. The complexity arises not from leverage or structured features but from the use of OTC derivatives and associated counterparty risk, which may not be easily understood by retail investors."
}