{
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": "FX hedging via forward contracts, securities lending for efficient portfolio management",
    "classification": "non-complex",
    "supporting_data": "The WisdomTree Global Quality Dividend Growth UCITS ETF - GBP Hedged is a UCITS-compliant ETF that tracks a transparent, fundamentally weighted equity index. It uses physical replication to invest in a representative sample of the index constituents, which is a standard, straightforward approach for equity ETFs and supports a non-complex classification under MiFID II[1]. The ETF employs forward currency contracts solely to hedge GBP exposure for the share class, which is a common and limited use of derivatives for efficient portfolio management (EPM) under UCITS rules. This FX hedging does not introduce significant counterparty or collateral risk, nor is it central to the ETF's investment objectiveu2014it merely neutralizes currency risk for GBP-denominated investors. The ETF may also engage in securities lending, but this is secondary, well-managed within UCITS limits, and does not dominate the risk profile. There is no evidence of embedded derivatives, leverage beyond UCITS limits, or complex structured features. The risks disclosed (tracking error, counterparty risk from service providers, operational risk, hedging mismatch) are typical for physically replicated UCITS ETFs and do not introduce structural complexity that would be difficult for a retail investor with basic knowledge to understand. The ETF's structure, objective, and risks are transparent and well-documented in the KIID, supporting the view that it is non-complex[1]. Under MiFID II, all UCITS are automatically non-complex unless they employ complex portfolio management techniques or structured features that make the product difficult to understandu2014neither of which applies here[1][3]. The use of derivatives for FX hedging is permitted for EPM and, when limited and well-disclosed as here, does not trigger a complex classification[1]. Therefore, despite the use of derivatives for hedging and securities lending for EPM, the ETF remains non-complex under MiFID II."
}