{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The Vanguard FTSE All-World High Dividend Yield UCITS ETF uses physical replication to track its benchmark index, investing directly in a representative sample of the index's constituent securities. While the KIID mentions the potential use of derivatives for risk reduction, cost management, or generating extra income, this is explicitly stated as a secondary function and not a core part of the investment strategy. The fund does not employ leverage, inverse strategies, or synthetic replication. The risk profile (SRRI 6) is primarily driven by the equity market exposure rather than structural complexity. The fund's documentation clearly outlines its investment approach, risks, and costs, making it transparent and understandable for retail investors. The absence of complex features like capital protection mechanisms, structured products, or significant counterparty risks further supports the non-complex classification.",
    "confidence": 95,
    "risk_level": 6,
    "counterparty_risk": "The fund acknowledges counterparty risk in its documentation, but this is a standard disclosure for any fund engaging in securities lending or using derivatives for ancillary purposes. The risk is mitigated by the fund's physical replication strategy and the fact that derivatives are not a primary driver of returns.",
    "additional_notes": "The fund's use of derivatives is explicitly for risk reduction or cost management, not for creating leverage or complex payoff structures. The physical replication method and straightforward equity exposure align with MiFID II's criteria for non-complex instruments. The fund's high SRRI rating is due to its equity market exposure, not structural complexity."
}