{
    "fund_name": "iShares S&P 500 Health Care Sector UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication to track the S&P 500 Capped 35/20 Health Care Index, which consists of liquid, large-cap U.S. healthcare equities. While the KIID mentions the use of financial derivative instruments (FDIs) for currency hedging and potential direct investment purposes, these are used for efficient portfolio management (EPM) rather than as a core strategy. The fund does not employ leverage, inverse strategies, or synthetic replication. The risk profile is transparent, with a clear focus on sector-specific equity risk. The absence of complex underlying assets, capital protection mechanisms, or significant counterparty risk further supports the non-complex classification.",
    "confidence": 95,
    "counter_argument": "Some might argue that the use of derivatives for currency hedging could introduce complexity. However, under MiFID II, derivatives used solely for hedging or efficient portfolio management (EPM) do not automatically classify an ETF as complex, provided they do not materially alter the risk profile or require specialist knowledge to understand. The fund's straightforward physical replication and transparent underlying assets outweigh this consideration.",
    "risk_level": 6,
    "key_risks": [
        "Sector concentration risk",
        "Equity market risk",
        "Currency hedging risk (mitigated by FX forwards)"
    ]
}