{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETF",
        "leverage": false,
        "derivates": true,
        "swaps": false,
        "inverse": false,
        "replication_method": "physical",
        "complex_factors": [
            "Currency Hedging via Forwards",
            "Index Complexity"
        ],
        "classification": "complex",
        "supporting_data": "This UCITS ETF seeks to track the WisdomTree Japan Equity UCITS Index, which is fundamentally weighted based on dividend yield and a composite risk score (CRS). It employs currency hedging using forward exchange contracts to neutralize Yen exposure. While the fund uses a physical replication approach by investing in a representative sample of the index constituents which on its own may make it non-complex the currency hedging introduces counterparty risk and the revenue exposure used to construct the index may prove hard to understand by retail clients, especially if there is a lack of easily understandable and available information. The fund uses forward exchange contracts (contracts between two parties to buy or s ell a specific currency in the future at an agreed upon exchange rate) in order to hedge the Japanese Yen exposure arising as a result of the difference between the J apa nese Yen and the US Dollar. Even using derivatives for risk management has been known to get regulators to classify the fund as complex even if for Effecient Portfolio Management only - reference ESMA. As it may be difficult, expensive or otherwise inefficient to purchase all the securities in the Index, the Fund may also hol d s hares or other securities which produce a similar investment return to securities in the Index or may invest in collective investment schemes.",
        "complex": true,
        "non-complex": false
    }
}