{
    "fund_name": "Xtrackers S&P 500 UCITS ETF 3C CHF Hedged",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Currency hedging using derivatives",
        "Potential for tracking error"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication for the S&P 500 index, which is a straightforward equity index. While it uses derivatives for currency hedging (CHF hedging), this is a common and transparent practice in ETFs. The fact sheet confirms direct replication (physical) and the KIID mentions derivatives are used to manage risk and reduce costs, not for leverage or complex strategies. The risk profile is clearly explained, and the fund is classified in category 6 (moderate risk) which is typical for equity ETFs. There are no signs of leverage, inverse exposure, or complex structured products. The use of derivatives here is for efficient portfolio management (currency hedging) rather than as an inherent element of the strategy, which aligns with MiFID II's non-complex classification for standard ETFs.",
    "confidence": 90
}