{
    "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 - Bloomberg USD Emerging Markets Sovereign UCITS ETF (hedged to GBP) is a UCITS-compliant ETF that tracks the Bloomberg Emerging Markets USD Sovereign & Agency 3% Country Capped Index using a stratified sampling physical replication method. The fund invests predominantly in bonds and transferable securities, with no securities lending. The KIID and PRIIPs KID documents indicate that derivatives may be used only for hedging currency risk and possibly for efficient portfolio management, but not as an inherent part of the investment strategy. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty risk exposure. The fund does not employ leverage, inverse or amplified exposure. The risk profile is moderate (risk level 3 out of 7 in PRIIPs KID, 5 out of 7 in KIID, reflecting emerging market bond volatility), but this is due to the underlying asset class and market risks rather than structural complexity. The fact sheet confirms physical stratified sampling replication and no use of swaps. Costs are straightforward with a TER of 0.28%, no performance fees, and no complex fee structures. There are no capital protection or structured features. The fund holds liquid sovereign bonds, not complex structured products or contingent convertible bonds. The PRIIPs KID does not carry any comprehension warnings or complexity flags. Overall, the fund exhibits a clear, linear relationship to the underlying index performance, with minimal derivative use for hedging only, and no leverage or synthetic structures. Therefore, under MiFID II, this ETF is classified as non-complex."
}