{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Use of OTC derivatives for efficient portfolio management with counterparty risk mitigated by collateral policy",
    "classification": "non-complex",
    "supporting_data": "The UBS (Lux) Fund Solutions - MSCI Switzerland 20/35 UCITS ETF is a UCITS-compliant ETF that primarily uses physical replication of the MSCI Switzerland 20/35 100% hedged to GBP Index. It may use derivatives, specifically OTC currency forwards for currency hedging and possibly for efficient portfolio management to gain exposure or generate efficiencies. The use of derivatives is limited and aimed at risk reduction (currency risk hedging) and operational efficiency, with counterparty risk mitigated by a collateral policy. There is no indication of synthetic replication, embedded derivatives, leverage beyond UCITS limits, or complex structured products such as CLOs. The ETF's structure and risks (market volatility, tracking error, currency risk) are transparent and understandable to retail investors with basic knowledge. According to MiFID II Article 25(4)(a)(iv) and Article 57 criteria, UCITS ETFs using physical replication and limited derivatives for efficient portfolio management with collateralized counterparty risk are classified as non-complex. The ETF does not embed derivatives integral to its investment objective, nor does it have features that would make it complex under MiFID II. Therefore, no appropriateness assessment or comprehension alert is required for retail investors investing in this ETF."
}