{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETF",
        "replication_method": "synthetic",
        "derivatives": true,
        "swaps": true,
        "inverse": false,
        "leverage": false,
        "complex_factors": [
            "FX Forward Contracts for Hedging"
        ],
        "classification": "non-complex",
        "supporting_data": "The ETF is a UCITS ETF, which generally benefits from a presumption of being non-complex. The ETF aims to track the MSCI Japan 100% Hedged to USD Net TR Index, which involves the use of one-month foreign exchange (FX) forward contracts to hedge Japanese Yen back to US Dollar. While the use of derivatives (FX forward contracts) is present for hedging purposes, the document specifies that these are used 'for direct investment purposes' to track the hedging methodology of the index. The Key Investor Information Document (KIID) does not indicate that these derivatives are integral to achieving the investment objective in a complex manner or that they introduce significant counterparty or collateral risks that would render the product difficult for a retail investor to understand. The primary investment strategy is to invest in equity securities that make up the index. The KIID also states that the fund uses 'optimising techniques' which may include financial derivative instruments (FDIs). However, without further specific details on the nature and complexity of these techniques, and given the primary focus on physical replication with a hedging overlay, the presumption of non-complexity for a UCITS ETF remains. The risk profile is rated 'six' due to investment concentration and market volatility, but these are not indicators of structural complexity. The use of securities lending is also mentioned as a secondary feature for generating income, which is permissible for UCITS and does not automatically trigger complexity if managed within UCITS rules. Overall, the ETF tracks a standard equity index with a currency hedge using derivatives, which is a common practice for UCITS ETFs and generally considered understandable for retail investors under MiFID II."
    }
}