{
    "fund_name": "Future of European Defence UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Defence sector focus (potential geopolitical risks)",
        "Complex index methodology (defence/cyber defence companies)",
        "Potential for high tracking error due to sector concentration"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication to track the VettaFi Future of Defence Ex US Index, which comprises publicly listed defence companies in NATO+ countries (excluding the USA). The fund does not use derivatives, leverage, or inverse strategies. The primary complexity factors relate to the sector-specific risks of defence investments and the potential for tracking error due to the concentrated nature of the index. However, these factors do not meet the MiFID II criteria for a 'complex' financial instrument, as the fund's structure remains straightforward and transparent. The UCITS compliance further supports the non-complex classification.",
    "confidence": 90
}