{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The UBS BBG USD EM Sovereign UCITS ETF primarily invests in emerging market sovereign bonds included in the Bloomberg Emerging Markets USD Sovereign & Agency 3% Country Capped Index. The fund uses a stratified sampling strategy with portfolio optimisation to replicate the index, predominantly through direct investment in bonds and transferable securities. The KIID and PRIIPs KID documents indicate that while derivatives may be used, this is for risk management or to achieve proportionate exposure, not as an inherent element of the investment strategy. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty risk exposure typical of synthetic ETFs. The fund does not engage in securities lending. The fact sheet confirms physical stratified sampling replication and no use of leverage or inverse strategies. The risk profile is moderate (risk category 5 in KIID, 3 in PRIIPs KID), reflecting bond market volatility and emerging market risks, but not complexity from derivatives or leverage. Costs are straightforward with a TER of 0.25% and no performance fees or swap fees. The PRIIPs KID states the product is 'not simple and may be difficult to understand' but this appears related to the underlying emerging market sovereign bonds and market risks rather than structural complexity such as leverage or synthetic replication. No capital protection or structured features are present. Overall, the ETF exhibits a clear, linear relationship to the underlying index performance, invests directly in liquid, transparent securities, and does not use leverage or synthetic replication. Therefore, under MiFID II criteria, it is classified as non-complex."
}