{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Currency hedging via FX forwards; use of derivatives for efficient portfolio management; exposure to dividend-weighted global developed equity index",
    "classification": "non-complex",
    "supporting_data": "The WisdomTree Global Quality Dividend Growth UCITS ETF is a UCITS-compliant ETF that tracks a transparent, rule-based, dividend-weighted global developed equity index. It uses physical replication by holding a representative sample of the index's underlying equity securities. The ETF employs currency hedging through forward exchange contracts to neutralize Euro exposure, which involves derivatives but solely for efficient portfolio management (EPM) purposes. The derivatives used (FX forwards) do not form an integral part of the investment objective but serve to manage currency risk, with no indication of embedded derivatives or complex structured products such as CLOs. There is no significant leverage beyond UCITS limits, no synthetic replication, and no embedded derivatives or structured products. The risk profile is driven by market volatility and tracking error, which are straightforward for retail investors to understand. According to MiFID II Article 25(4)(a)(iv) and Article 57 criteria, UCITS ETFs that use derivatives only for EPM with minimal impact on risk-return are generally classified as non-complex. ESMA guidance and regulatory practice confirm that physical replication and limited derivative use for hedging do not trigger complexity. Therefore, despite the use of FX forwards, this ETF remains non-complex under MiFID II. The ETF's structure, transparency, and risk profile support this classification, and no comprehension alert is required in the KID."
}