{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Currency hedging using derivatives",
        "Securities lending activities"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares S&P 500 ESG UCITS ETF EUR Hedged (Acc) primarily uses physical replication to track the S&P 500 ESG Index, which is a straightforward equity index. While the fund does use financial derivative instruments (FDIs) for currency hedging and securities lending, these activities are common in UCITS-compliant ETFs and do not significantly alter the fund's risk profile. The fund does not employ leverage, inverse strategies, or synthetic replication. The underlying index is a well-known, transparent equity index with clear ESG screening criteria. The fund's risk rating of 6 (on a 1-7 scale) is consistent with other equity ETFs and does not indicate excessive complexity. The use of derivatives is limited to hedging and efficient portfolio management, which are typical practices in UCITS ETFs and do not trigger MiFID II complexity classification. The fund's disclosure of counterparty risk related to derivatives is standard for UCITS ETFs and does not indicate a complex structure.",
    "confidence": 90
}