{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The UBS (Lux) Fund Solutions - MSCI EMU UCITS ETF (hedged to GBP) is a UCITS-compliant ETF that primarily uses physical full replication of the MSCI EMU 100% hedged to GBP Index. The fund invests predominantly in shares of the index constituents and applies currency hedging via currency forwards to reduce exchange rate risk. The KIID and PRIIPs KID documents confirm that derivatives are used only for hedging and efficiency purposes, not as an inherent part of the investment strategy, and there is no mention of synthetic replication, swap agreements, or total return swaps. The fund does not employ leverage, inverse exposure, or capital protection mechanisms. The risk profile is medium (4 out of 7 in PRIIPs KID, 5-6 in KIID), reflecting equity market volatility rather than structural complexity. The fact sheet explicitly states physical full replication and no use of synthetic replication or swaps. Costs are straightforward with a low TER (0.15%) and no performance fees. There are no complex underlying assets such as contingent convertible bonds or CLOs. Counterparty risk from OTC derivatives is minimal and related only to currency forwards, mitigated by collateral policies. No complexity flags such as capital protection, structured features, or leverage are present. Therefore, under MiFID II criteria, this ETF is classified as non-complex."
}