{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The UBS (Irl) ETF plc - UBS MSCI USA Select Factor Mix UCITS ETF is classified as non-complex under MiFID II based on the following analysis: 1. Replication Method: The ETF uses physical replication with stratified sampling, investing directly in US stocks contained in the MSCI USA Select Factor Mix 100% hedged to EUR Index. 2. Derivative Usage: While the KIID mentions the potential use of derivatives for risk reduction, hedging, or generating additional capital/income, the fact sheet confirms physical replication with no mention of synthetic replication or swap agreements. The derivatives usage appears limited to currency hedging (selling foreign currency forwards at one-month forward rates), which is a standard practice for hedged ETFs and does not introduce complexity. 3. Leverage and Inverse Exposure: There is no indication of leverage or inverse exposure in the documentation. 4. Underlying Asset Complexity: The underlying assets are equities, and the index is a factor-weighted equity index, which is not inherently complex. 5. Risk Profile: The fund is in risk category 6 due to equity market volatility, but this is typical for equity ETFs and does not indicate complexity. 6. Costs and Charges: The fee structure is straightforward with no performance fees or complex cost arrangements. 7. UCITS Compliance: The fund is UCITS-compliant, which aligns with non-complex classification. The absence of synthetic replication, leverage, inverse strategies, or complex underlying assets supports the non-complex classification. The use of derivatives for currency hedging is standard and does not trigger complexity under MiFID II.",
    "confidence": 95
}