{
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Active management",
        "Government bonds with potential credit risk",
        "ESG integration complexity"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF is classified as non-complex under MiFID II because it primarily uses physical replication (direct investment in government bonds) and does not employ leverage, inverse strategies, or synthetic replication via swaps. While it uses derivatives for efficient portfolio management (as permitted under UCITS rules), the usage appears to be for hedging or risk management rather than as an inherent part of the investment strategy. The fund's risk profile (rated 4 out of 7) is moderate and aligns with its stated objective of investing in government bonds. The active management and ESG integration add some complexity, but these do not meet the MiFID II thresholds for classifying the fund as complex. The absence of capital protection mechanisms, structured products, or contingent bonds further supports this classification.",
    "confidence": 85
}