{
    "ucits": true,
    "type": "ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": "Currency hedging via forward contracts, use of derivatives for efficient portfolio management, securities lending",
    "classification": "non-complex",
    "supporting_data": "The WisdomTree Japan Equity UCITS ETF - EUR Hedged Acc is a UCITS-compliant ETF, which is generally presumed non-complex under MiFID II[1]. It employs physical replication to track its index, holding a representative sample of the underlying equities, which supports transparency and ease of understanding for retail investors. The ETF uses forward foreign exchange contracts solely to hedge currency exposure between the Japanese Yen and the Euro, a common practice for currency-hedged share classes and considered efficient portfolio management (EPM) under UCITS rules. The use of derivatives here is limited to hedging and does not form the core investment strategy. The ETF may also engage in securities lending and repurchase/reverse repurchase agreements, but these are secondary activities, well within UCITS limits, and do not dominate the risk profile. There is no significant leverage, embedded derivatives, or synthetic replication. The risks disclosed (tracking error, counterparty risk from hedging and securities lending, operational risk) are typical for physically replicated equity ETFs and are considered comprehensible for retail investors with basic knowledge. The index methodology is transparent and rule-based, further supporting non-complexity. While ESMA has noted that some UCITS ETFs with complex features (e.g., synthetic replication, structured payouts) may be complex, this ETFu2019s structure and derivative use do not reach that threshold[2]. Therefore, despite the use of derivatives for hedging and EPM, the ETF remains non-complex under MiFID II."
}