{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "derivatives": false,
    "swaps": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The iShares Europe Defence UCITS ETF aims to replicate the STOXX Europe Targeted Defence Index by investing directly in the equity securities that make up the index, using physical replication. The KIID explicitly states the Fund intends to hold the underlying equities in similar proportions to the index, with no mention of synthetic replication or swap agreements. While the Fund may use financial derivative instruments (FDIs), these are described as potentially used for direct investment purposes and not as an inherent part of the replication strategy, implying derivatives are used only for efficient portfolio management or risk mitigation, not as a core element. There is no indication of leverage, inverse exposure, or capital protection features. The risk profile is rated 7, reflecting sector concentration and equity market risks, but this does not alone indicate complexity under MiFID II. Counterparty risk is mentioned in the context of service providers and derivative counterparties, but no significant counterparty exposure or unfunded swap structures are described. Charges are straightforward with no performance fees or swap fees. Securities lending is used but is a common practice and does not add complexity. The index tracked is a standard equity index with ESG and revenue-based screening criteria, but no complex structured indices or contingent bonds are involved. No PRIIPs KID or factsheet information contradicts these findings. Therefore, the ETF is classified as non-complex under MiFID II."
}