{
    "fund_name": "iShares Edge MSCI USA Value Factor UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Complex index methodology (factor-based selection)",
        "Potential for significant tracking error due to factor focus",
        "Counterparty risk from securities lending"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication for its core strategy, tracking the MSCI USA Enhanced Value Index through direct equity investments. While the index methodology is complex (factor-based selection), the ETF itself does not use derivatives for investment purposes beyond potential securities lending. The risk profile is rated 6/7, but this is primarily due to equity market risk rather than structural complexity. The use of derivatives is limited to potential securities lending, which is a common practice in ETFs and does not materially alter the risk profile. The fund's transparency, liquidity, and straightforward equity exposure make it suitable for retail investors under MiFID II standards.",
    "confidence": 90
}