{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Goldman Sachs USD High Yield Bond Active UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "Contingent Convertible Bonds",
    "classification": "complex",
    "supporting_data": "The ETF is a UCITS-compliant bond ETF primarily investing in below investment grade US Dollar denominated fixed income securities, including up to 10% in contingent capital securities (CoCos). The fund uses physical replication, holding a broad portfolio of corporate bonds (283 holdings) with minimal derivative exposure (0.25% derivatives per factsheet) used mainly for risk management and efficient portfolio management, not as an inherent part of the investment strategy. There is no mention of synthetic replication, swap agreements, or funded/unfunded swaps. Leverage or inverse exposure is not present. The risk profile is moderate (risk level 3 out of 7 in PRIIPs KID, category 4 in KIID), indicating medium-low risk. However, the presence of contingent convertible bonds (CoCos) introduces complexity due to their trigger-based loss or conversion features, which are highlighted as a specific risk factor in all documents. The fund does not have capital protection or structured features, nor does it employ leverage or inverse strategies. Costs are straightforward with a single ongoing charge of 0.35%, no performance fees, and no complex fee structures. The PRIIPs KID does not carry a comprehension warning but notes the medium-low risk and the need for understanding the risks associated with CoCos and high yield bonds. The factsheet confirms physical replication and limited derivative use for risk management, not synthetic replication. Therefore, despite the straightforward replication and moderate risk profile, the inclusion of contingent convertible bonds mandates classification as complex under MiFID II rules due to the inherent complexity and risk of these instruments, which may not be easily understood by retail investors."
}