{
    "fund_name": "Future of Defence UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Defence sector focus (potential political/regulatory risks)",
        "Potential securities lending (up to 70% of assets)",
        "Index methodology may include complex screening criteria"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication to track the EQM Future of Defence Index, which consists of publicly listed companies in NATO+ countries. There are no indications of synthetic replication, leverage, inverse strategies, or complex derivative structures. The primary complexity factors relate to the defence sector's inherent risks (government spending policies, political risks) and potential securities lending activities. While these factors introduce some complexity, they do not meet MiFID II's criteria for classifying the ETF as complex. The fund's straightforward physical replication method and transparent index-tracking approach align with non-complex ETFs under MiFID II.",
    "confidence": 90,
    "notes": "While the defence sector and securities lending introduce some complexity, they do not trigger MiFID II's complex classification criteria. The fund's physical replication and lack of derivative-based strategies support the non-complex determination."
}