{
    "type": "ETF",
    "ucits": true,
    "fund_name": "iShares MSCI USA ESG Enhanced UCITS ETF GBP Hedged (Dist)",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The ETF is a UCITS-compliant equity ETF that aims to replicate the MSCI USA ESG Enhanced Focus CTB Index by physically holding the underlying equity securities in similar proportions. The KIID and PRIIPs KID confirm the fund uses physical replication with no mention of synthetic replication, swap agreements, or total return swaps. The fund uses financial derivative instruments only for currency hedging purposes (FX forwards), which is considered risk management rather than an inherent part of the investment strategy, so derivatives are marked false. There is no leverage, inverse or amplified exposure. The risk indicator is 5 out of 7, reflecting medium-high risk typical of equity funds, but not indicative of complexity under MiFID II. The fund invests in a broad, liquid basket of US equities with ESG screening and optimisation, but no complex underlying assets such as contingent convertible bonds or CLOs. The monthly factsheet confirms physical replication methodology and no use of swaps or synthetic structures. Costs are straightforward with a TER of 0.10%, no performance fees, and securities lending revenue sharing disclosed but not increasing costs. Counterparty risk disclosures relate to normal custodial and FX forward counterparties, typical for UCITS ETFs. No capital protection or structured features are present. The ESG optimisation and index construction use an optimisation process, but this does not introduce complexity under MiFID II as the fund holds the underlying securities directly. Overall, the fund exhibits none of the complexity triggers such as synthetic replication, leverage, complex underlying assets, or capital protection mechanisms. Therefore, it is classified as non-complex."
}