{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Currency hedging via forward contracts, securities lending for efficient portfolio management",
    "classification": "non-complex",
    "supporting_data": "The WisdomTree Japan Equity UCITS ETF - CHF Hedged Acc is a UCITS-compliant ETF, which is generally presumed non-complex under MiFID II[1]. The fund uses physical replication to track its index, holding a representative sample of the underlying equities. Derivatives (forward foreign exchange contracts) are used solely for currency hedging to neutralize JPY/CHF exposure, in line with the index methodology, and not as a core part of the investment strategy. Securities lending is permitted for efficient portfolio management, within UCITS limits and with appropriate collateral. There is no significant leverage, no embedded swaps or structured products, and no complex indices. The risks disclosed (tracking error, counterparty risk from hedging and securities lending, operational risk) are typical for equity ETFs and do not introduce structural complexity beyond what a retail investor with basic knowledge could understand. The fundu2019s structure, objectives, and risks are transparent and well-explained in the KIID. Therefore, despite limited derivative use for hedging and securities lending, the ETF remains non-complex under MiFID II, as these features do not make the productu2019s structure, risks, or payoff difficult for a retail investor to understand[1]."
}