{
    "fund_name": "HSBC EUROPE SUSTAINABLE EQUITY UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Up to 10% exposure to total return swaps and contracts for difference",
        "Potential use of derivatives for efficient portfolio management",
        "Tracking a complex ESG index with multiple exclusion criteria"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF primarily uses physical replication (as confirmed in the monthly factsheet) and tracks a straightforward equity index. While it has permissions to use up to 10% of assets in swaps and derivatives for efficient portfolio management, this is well below the thresholds that would typically trigger a complex classification. The derivatives usage appears to be for risk management and cost efficiency rather than as an inherent part of the investment strategy. The index being tracked (FTSE Developed Europe ESG Low Carbon Select Index) while having ESG criteria, does not appear to be particularly complex in structure. The fund's risk profile (category 6) is primarily driven by equity market risk rather than derivative-specific risks. The monthly factsheet confirms the replication method is 'Physical - Full', further supporting the non-complex classification.",
    "confidence": 85
}