{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Currency Hedging",
        "Counterparty Risk from Swaps"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses physical replication but employs OTC swaps for currency hedging, introducing counterparty risk. The factsheet explicitly mentions exposure to counterparty risk from swaps with Morgan Stanley Bank AG and Societe Generale, which is a key complexity indicator under MiFID II. While the primary replication is physical, the use of swaps for hedging purposes introduces additional risk layers that may not be easily understood by retail investors. The presence of counterparty risk and the potential for tracking error due to hedging imperfections contribute to the complexity classification.",
    "confidence": 85,
    "risk_level": "low",
    "counterparty_risk": true,
    "hedging_risk": true,
    "tracking_error_risk": true,
    "liquidity_risk": false,
    "credit_risk": false,
    "operational_risk": false,
    "currency_risk": true,
    "underlying_risk": false,
    "volatility": 1.8,
    "sharpe_ratio": -0.12,
    "tracking_error": 0.06,
    "benchmark_complexity": "low",
    "additional_notes": "Although the ETF is physically replicated and tracks a straightforward government bond index, the use of OTC swaps for currency hedging introduces complexity. The counterparty risk from these swaps, even within UCITS limits, is a material factor under MiFID II. The ETF's low risk profile and simple underlying assets are outweighed by the derivative-related risks, leading to a 'complex' classification."
}