{
    "fund_name": "Xtrackers MSCI World Value ESG UCITS ETF",
    "isin": "IE000LAUZQT6",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Complex index methodology (value factor screening, ESG criteria, optimization-based approach)",
        "Potential for significant tracking error (up to 1%)",
        "Risk of incorrect ESG screening by third-party provider"
    ],
    "classification": "non-complex",
    "confidence": 90,
    "supporting_data": "The ETF uses physical replication to track the MSCI World Value Low Carbon SRI Screened Select Index, which applies complex screening and optimization methodologies. While the index methodology is sophisticated, the ETF itself does not use derivatives for leverage or synthetic replication. The fund's risk profile (category 6) reflects the underlying equity market risk rather than derivative-related risks. The primary complexity factors are the index construction methodology and potential tracking error, but these do not meet MiFID II's criteria for complexity. The ETF is UCITS-compliant and provides daily liquidity, making it suitable for retail investors. The fact that derivatives are mentioned as a possible risk management tool does not trigger complexity classification, as they are not used for the core investment strategy. The PRIIPs KID and factsheet confirm the physical replication approach and lack of derivative usage in the portfolio."
}