{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The Xtrackers ESG USD Emerging Markets Bond Quality Weighted UCITS ETF is a UCITS-compliant ETF that physically replicates the iBoxx MSCI ESG USD Emerging Markets Sovereigns Quality Weighted Index by directly purchasing USD-denominated emerging market government bonds. The fund uses derivatives only for currency hedging purposes to minimize foreign exchange risk between the fund's USD assets and the EUR share class currency, not for investment exposure or leverage. There is no mention of synthetic replication, swap agreements, total return swaps, or unfunded/funded swap structures. The fund does not employ leverage, inverse exposure, or capital protection mechanisms. The underlying assets are sovereign bonds with a minimum rating of B, which are liquid and transparent, and the index methodology is rules-based with ESG and credit quality filters, but not inherently complex or structured. The risk profile is moderate (risk level 4), consistent with bond market volatility and emerging market risks, without elevated derivative or counterparty risk disclosures. Costs are straightforward with a single ongoing charge of 0.50% and no performance fees or swap fees. The PRIIPs KID does not include any comprehension warnings or complexity flags. The factsheet confirms direct physical replication and derivative use limited to currency hedging, supporting the non-complex classification under MiFID II. Overall, the fund\u2019s structure, replication method, and risk disclosures indicate it is a non-complex financial instrument."
}