{
    "complex": false,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication with stratified sampling to track the Bloomberg Emerging Markets USD Sovereign & Agency 3% Country Capped Index (hedged to CHF). While derivatives are mentioned as a possible tool for achieving exposure, the primary method is direct investment in the underlying bonds. The fund does not employ leverage, inverse strategies, or synthetic replication. The risk profile is clearly disclosed, and the fund is UCITS-compliant, indicating a regulated and transparent structure. The use of derivatives is limited to hedging currency risk and is not a core part of the investment strategy.",
    "confidence": 90,
    "risk_level": 5,
    "counter_argument": "The mention of derivatives in the KIID could suggest complexity, but the context clarifies that they are used for hedging and not as a primary investment strategy. The fund's physical replication and UCITS compliance further support its non-complex classification.",
    "final_decision": "The ETF is classified as non-complex under MiFID II due to its physical replication strategy, lack of leverage or inverse exposure, and transparent risk profile. The use of derivatives is incidental and for hedging purposes only."
}