{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The iShares US Mortgage Backed Securities GBP Hedged ETF is a UCITS-compliant ETF that physically invests in a diversified portfolio of US government agency mortgage-backed securities (MBS) such as GNMA, FNMA, and FHLMC. The fund aims to track the Bloomberg Barclays US Mortgage Backed Securities Index using physical securities, with some optimisation techniques including representative sampling. The documents mention the use of financial derivative instruments (FDIs) only for currency hedging purposes (e.g., FX forward contracts), not as an inherent part of the investment strategy, so derivatives are used for risk management rather than exposure. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty exposure related to derivatives. The fund does not employ leverage or inverse strategies, and the risk profile is moderate (risk level 3-4 out of 7), consistent with fixed income MBS exposure. The fund holds a large number of underlying securities (522), all investment grade, with no complex structured products or contingent convertible bonds. The PRIIPs KID confirms no complexity warnings or comprehension warnings. The monthly factsheet confirms physical replication and no use of swaps or leverage. Costs are straightforward with no performance fees or swap fees. Securities lending is used but revenue sharing does not increase costs. Overall, the fund exhibits a clear, linear relationship to the underlying MBS index, with minimal derivative use limited to currency hedging, no leverage, and no complex underlying assets. Therefore, under MiFID II criteria, this ETF is classified as non-complex."
}