{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETF",
        "leverage": false,
        "derivatives": true,
        "swaps": false,
        "inverse": false,
        "replication_method": "physical",
        "complex_factors": "The ETF's structure includes Shariah-compliant foreign exchange contracts (derivatives) for hedging, and the index tracks the MSCI Europe Islamic ESG Universal Screened Select Index. The index methodology includes ESG exclusions, re-weighting based on ESG profiles, and a semi-annual rebalancing. The fund invests in shares of companies that comply with Shariah principles. The index incorporates environmental, social, and governance (ESG) metrics, and this might lead to opacity which could mean it is complex. The fund may use Shariah-compliant foreign exchange contracts (including spot and forward contracts) for hedging purposes which may be construed as a derivative making it complex.",
        "classification": "complex",
        "supporting_data": "The ETF is a UCITS fund, so it is subject to strict regulatory requirements. The use of Shariah-compliant foreign exchange contracts (derivatives) for hedging is present. The underlying index applies values- and climate-based exclusionary criteria and excludes companies with exposure to controversial and nuclear weapons, adult entertainment, alcohol, gambling, tobacco, thermal coal power, thermal coal mining, oil sands extraction, pork-related products, conventional financial services, Civilian firearms, oil sands reserve ownership and breaching the United Nations Global Compact (UNGC) principles. Although physical replication is used, and the fund is passively managed tracking the MSCI Europe Islamic ESG Universal Screened Select Index, the inclusion of a derivative and a complex index make it complex, particularly as the ESMA guidelines mention that any use of derivatives makes the asset complex. This assessment is further supported by the exclusion criteria of the index and rebalancing. The nature of the index itself, as well as the use of derivatives and the hedging, create an opaque structure that may be difficult for retail investors to understand. The ESG aspect and index methodology further complicates the assessment, potentially making it difficult for an average retail investor to fully understand the risks and performance drivers. Section 2.1 of the ESMA guidance specifically mentions that if the asset uses derivatives the appropriateness test must be carried out."
    }
}