{
    "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 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 and no use of leverage or inverse strategies. Although the KIID and PRIIPs documents mention that derivatives may be used, this is only for risk management purposes and not as an inherent part of the investment strategy, so derivatives are not considered a complexity factor here. There is no mention of synthetic replication, swap agreements, or counterparty risk exposure. The fund's risk profile is moderate (risk level 3 in PRIIPs, risk level 5 in KIID reflecting emerging market bond volatility), but this is due to the underlying asset class (emerging market sovereign bonds) rather than structural complexity. The fact sheet confirms physical stratified sampling replication and no use of leverage or synthetic instruments. Costs are straightforward with a TER of 0.25% and no performance fees or swap fees. No capital protection or structured features are present. The index tracked is a broad, transparent fixed income index with capped country weights, not a complex or contingent bond index. Therefore, the fund does not meet MiFID II criteria for a complex financial instrument."
}