{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Use of OTC derivatives for currency hedging and efficiency, counterparty risk exposure, structured notes holdings",
    "classification": "complex",
    "supporting_data": "The UBS MSCI Switzerland 20/35 UCITS ETF is a UCITS-compliant ETF that primarily uses physical replication (full replication) of the MSCI Switzerland 20/35 100% hedged to EUR Index. However, the fund may use derivatives, specifically OTC derivatives such as currency forwards and possibly other derivatives, to achieve currency hedging and to gain exposure efficiently where direct replication is impractical. The KIID and PRIIPs documents explicitly mention the use of OTC derivatives and associated counterparty risk, mitigated by collateral policies. The fund also invests in structured notes listed on regulated markets, which adds complexity. There is no leverage or inverse exposure, and derivatives are used for hedging and efficiency rather than as an inherent element of the investment strategy, so 'derivatives' is marked false. The presence of swaps (currency forwards) and counterparty risk exposure triggers classification as complex under MiFID II. The risk profile is medium (category 4-5), consistent with equity exposure and derivative usage. The fund does not have capital protection or leverage. The complexity arises mainly from the use of OTC derivatives (currency forwards/swaps) and structured notes, plus counterparty risk disclosures. The fund\u2019s replication is physical but supplemented by derivatives for hedging and efficiency, which under MiFID II makes it complex. No leverage or inverse exposure is present. The PRIIPs KID does not carry a specific comprehension warning but confirms the derivative usage and counterparty risk. The monthly factsheet confirms physical replication and currency hedging via forwards, no synthetic replication or funded/unfunded swaps. Overall, the fund is complex due to derivative usage (swaps/forwards) and counterparty risk, despite physical replication and no leverage."
}