{
    "complex": false,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The HSBC NASDAQ Global Semiconductor UCITS ETF is classified as non-complex under MiFID II regulations. The primary reasons for this classification are: 1) The fund uses physical replication as its primary investment strategy, aiming to directly hold the securities in the Nasdaq Global Semiconductor Index; 2) While the fund has permission to use derivatives (up to 10% in total return swaps and contracts for difference), this is explicitly stated to be for efficient portfolio management purposes rather than as a core investment strategy; 3) The fund does not employ leverage or inverse strategies; 4) The underlying assets are straightforward equity securities of semiconductor companies; 5) The fund is UCITS compliant, which imposes additional investor protection requirements; 6) The risk profile (category 7) is primarily due to the volatile nature of semiconductor stocks rather than structural complexity; 7) The fund provides regular liquidity and transparent pricing. The limited derivative usage (capped at 5% expected) for EPM purposes does not trigger complexity under MiFID II, as it doesn't materially alter the risk profile or require specialist knowledge to understand.",
    "confidence": 95
}