{
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Currency Hedging",
        "Derivative Usage for Hedging"
    ],
    "classification": "non-complex",
    "supporting_data": "The UBS Factor MSCI USA Prime Value Screened UCITS ETF uses physical replication as its primary method, investing directly in the underlying securities of the MSCI USA Prime Value Advanced Target Select Index. While the KIID mentions the use of derivatives, particularly for currency hedging (selling foreign currency forwards), this is done for efficient portfolio management and risk reduction rather than as a core investment strategy. The derivatives are not used for leverage or to create complex payoff structures. The fund's risk profile (category 6) is primarily driven by its equity exposure rather than derivative complexity. The ETF is UCITS-compliant, which imposes strict limits on derivative usage and counterparty risk. The fact sheet confirms physical replication and shows no signs of leverage or inverse strategies. The derivatives are used in a straightforward manner for hedging purposes, which is a common and accepted practice for non-complex ETFs. The fund's transparency, liquidity, and straightforward investment objective further support its non-complex classification.",
    "confidence": 90,
    "counter_argument": "Some might argue that the use of derivatives for hedging could introduce complexity, but under MiFID II, derivatives used solely for hedging or efficient portfolio management do not automatically classify an ETF as complex. The fund's physical replication method and straightforward investment objective outweigh the derivative usage in this context."
}