{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS Factor MSCI EMU Quality Screened UCITS ETF",
    "investment_objective": "Passive replication of MSCI EMU Quality Advanced Target Select Index (Net Total 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; complex ESG-adjusted index; derivative counterparty risk mitigated by collateral policy",
    "classification": "complex",
    "supporting_data": "The ETF primarily invests in equities of EMU countries aiming to replicate the MSCI EMU Quality Advanced Target Select Index. The KIID and PRIIPs KID state that the fund uses direct investments in all or substantially all index components and/or derivatives, particularly OTC derivatives (swaps) where physical replication is not practicable. The use of OTC derivatives introduces counterparty risk, although mitigated by collateral policies. The factsheet confirms physical full replication as the main method but acknowledges derivative use for efficiency. There is no leverage or inverse exposure. The risk profile is medium to high (risk category 5 in KIID, 4 in PRIIPs KID), reflecting equity volatility and derivative counterparty risk. The PRIIPs KID explicitly states the product 'is not simple and may be difficult to understand,' indicating complexity under MiFID II. No capital protection or structured features are present. Costs are straightforward with no performance fees. The complexity arises mainly from the use of OTC derivatives (swaps) for index exposure and the complexity of the ESG-adjusted index tracked, which may be difficult for retail investors to fully understand. Therefore, despite physical replication predominance, the presence of swap agreements and counterparty risk leads to a 'complex' classification under MiFID II.",
    "risk_level_assessment": "The fund's stated risk profile is medium to high (risk category 5-6 in KIID, 4 in PRIIPs KID), consistent with equity market volatility and derivative counterparty risk. This aligns with the complexity classification as the use of OTC derivatives and counterparty risk elevate the risk beyond simple physical equity ETFs."
}