{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The UBS (Lux) Fund Solutions - MSCI Japan UCITS ETF is a UCITS-compliant ETF that primarily uses physical replication by investing directly in the component securities of the MSCI Japan Index or through limited use of derivatives only for efficient portfolio management (EPM) purposes, such as managing inflows/outflows or hedging currency risk. The derivatives use is limited and collateralized, mitigating counterparty risk. The ETF does not employ leverage beyond UCITS limits, nor does it embed complex derivatives or structured products. The underlying index is transparent and well-documented. Securities lending is possible but managed within UCITS rules and does not dominate the risk profile. The risk profile is high due to market volatility (risk category 6), but this reflects market risk, not structural complexity. According to MiFID II Article 25(4)(a)(iv) and Article 57 criteria, UCITS ETFs that use physical replication and limited derivatives for EPM with minimal impact on risk-return are classified as non-complex. The ETF's structure and risks are straightforward and understandable by retail investors with basic knowledge. Therefore, this ETF is classified as non-complex under MiFID II."
}