{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Currency hedging using FX forwards",
        "Securities lending"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares Core S&P 500 UCITS ETF (MXN Hedged) is classified as non-complex under MiFID II for the following reasons: 1. Physical replication method (confirmed in both KIID and factsheet) with direct investment in underlying S&P 500 equities. 2. No leverage or inverse exposure. 3. Derivative usage is limited to: a) FX forwards for currency hedging (standard practice for hedged share classes) and b) securities lending (for cost reduction). 4. The S&P 500 index is a well-known, transparent benchmark. 5. Risk profile is straightforward (equity market risk). While derivatives are used, they serve clear risk management purposes without creating additional complexity. The securities lending program is standard for ETFs and doesn't materially alter the risk profile. The currency hedging is a common feature of hedged share classes and doesn't introduce complexity beyond what retail investors would expect. The fund's risk rating (6) aligns with its equity exposure and doesn't indicate unusual complexity.",
    "confidence": 90,
    "counter_argument": "One could argue the FX forwards introduce complexity, but these are standard hedging instruments in hedged share classes and don't materially alter the fund's risk profile. The physical replication method and direct equity exposure remain the dominant characteristics.",
    "overriding_reason": "The fund's primary investment strategy (physical replication of a transparent index) and lack of leverage/inverse features outweigh the limited derivative usage for hedging purposes. The overall structure remains suitable for retail investors."
}