{
    "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 - Bloomberg TIPS 1-10 UCITS ETF is a UCITS-compliant ETF that predominantly invests in bonds and transferable securities, tracking the Bloomberg US Government 1-10 Year Inflation-Linked Bondu2122 Index. It uses physical replication by direct investment in the component securities and only uses derivatives for efficient portfolio management (EPM) purposes, such as to gain exposure when direct replication is not practicable. The derivatives use is limited and collateralized, with counterparty risk mitigated by a collateral policy. The fund does not engage in securities lending or significant leverage beyond UCITS limits. The structure and risks (market volatility, tracking error) are straightforward and transparent, suitable for retail investors with basic knowledge. The ETF does not embed derivatives as an inherent element of its strategy, nor does it invest in complex structured products like CLOs. According to MiFID II Article 25(4)(a)(iv) and Article 57 criteria, UCITS ETFs that physically replicate transparent indices and use derivatives only for EPM with minimal risk impact are classified as non-complex. ESMA and CESR guidance confirm that synthetic replication or embedded derivatives would trigger complexity, but this ETF does not exhibit such features. Therefore, the ETF is classified as non-complex under MiFID II for appropriateness assessment purposes."
}