{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Currency hedging using derivatives",
        "Optimised replication (sampling)",
        "Potential for imperfect hedging losses"
    ],
    "classification": "non-complex",
    "supporting_data": "The SPDR MSCI Japan UCITS ETF is classified as non-complex under MiFID II. While it uses derivatives for currency hedging and optimised replication, these are standard practices in ETFs and do not create significant complexity. The fund tracks a straightforward equity index (MSCI Japan) with no leverage, inverse exposure, or complex structured features. The use of derivatives is limited to efficient portfolio management and currency hedging, which are common in UCITS-compliant ETFs. The risk profile is clearly disclosed as category 6 (higher risk), but this reflects the underlying equity market risk rather than structural complexity. The fund's physical replication (with optimised sampling) and transparent index-tracking objective align with typical non-complex ETFs. The fact sheet confirms the use of derivatives is for hedging and efficient management, not for speculative or complex strategies. The absence of swap counterparty risk warnings in the KIID further supports the non-complex classification.",
    "confidence": 90
}