{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Currency Hedging with Derivatives",
        "Counterparty Risk Exposure"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses financial derivative instruments (FDIs) for currency hedging purposes, including FX forward contracts, which introduces counterparty risk. While the primary replication method is physical, the use of derivatives for hedging and potential securities lending with counterparty exposure adds complexity. The KIID explicitly mentions counterparty risk related to derivatives, which is a key complexity indicator under MiFID II. Additionally, the fund's use of optimising techniques and potential securities lending further contribute to its classification as complex.",
    "confidence": 85,
    "risk_level": "medium",
    "counterparty_risk": true,
    "securities_lending": true,
    "benchmark_complexity": "low",
    "underlying_assets": "investment-grade floating rate bonds",
    "hedging_strategy": "currency hedging with FX forwards",
    "additional_notes": "Although the ETF is physically replicated and tracks a relatively straightforward index, the use of derivatives for hedging and the associated counterparty risks push it into the 'complex' category under MiFID II. The fund's risk rating of 2 (out of 7) does not negate the complexity introduced by derivative usage and counterparty exposure."
}