{
    "fund_name": "Invesco Defence Innovation UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Complex index methodology",
        "Sector concentration risk",
        "Potential for illiquid holdings"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication to track the S&P Kensho Global Future Defense Index, which focuses on companies involved in defense and security technologies. While the index methodology is sophisticated (using automated scans of regulatory filings and overweighting 'Core' companies), the ETF itself does not use derivatives, leverage, or synthetic replication. The primary complexity factors are the specialized nature of the index and potential concentration risk in a niche sector. However, these do not meet MiFID II's criteria for 'complex' instruments, as the fund remains transparent, liquid, and suitable for retail investors. The absence of derivatives, leverage, or inverse strategies further supports the non-complex classification.",
    "confidence": 90
}