{
    "fund_name": "iShares Core MSCI Europe UCITS ETF MXN Hedged (Acc)",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Currency hedging using derivatives",
        "Optimised replication techniques",
        "Counterparty risk from derivatives"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication as its primary method (as stated in the fact sheet) and aims to track the MSCI Europe Index through direct investment in equity securities. While it uses derivatives for currency hedging (FX forward contracts) and optimised replication, these are standard practices in UCITS-compliant ETFs and do not introduce significant complexity. The derivatives are used for efficient portfolio management rather than for leverage or inverse exposure. The risk profile is straightforward, with risks primarily tied to equity market movements. The fact that it is UCITS-compliant and uses physical replication as the primary method further supports the non-complex classification. The use of derivatives for hedging is common and does not make the fund inherently complex under MiFID II, as long as the overall structure remains transparent and the risks are easily understandable.",
    "confidence": 90,
    "counter_argument": "Some might argue that the use of derivatives for hedging and optimised replication could introduce complexity, but the fact that the ETF is UCITS-compliant and primarily physically replicated mitigates this concern. The derivatives are used for straightforward hedging and replication, not for speculative or leveraged purposes, which aligns with MiFID II's non-complex classification for standard ETFs.",
    "risk_level": "Medium (Risk level 6 out of 7, as per the KIID)"
}