{
    "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 optimisation techniques (including FDIs for direct investment) adds complexity. The presence of counterparty risk and the need for investors to understand the implications of currency hedging strategies contribute to the classification as complex under MiFID II.",
    "confidence": 85,
    "risk_level": 3,
    "benchmark_complexity": "low",
    "underlying_assets": "Government bonds from G7 countries, generally considered low complexity",
    "additional_notes": "Although the ETF is physically replicated and invests in relatively straightforward government bonds, the use of derivatives for currency hedging and potential optimisation introduces elements that may not be easily understood by retail investors. The counterparty risk associated with derivatives is a key factor in the complex classification."
}