{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The iShares J.P. Morgan $ EM Bond UCITS ETF MXN Hedged (Acc) is a UCITS-compliant ETF that physically invests in a diversified portfolio of US Dollar-denominated emerging market fixed income securities, including sovereign and quasi-sovereign bonds. The fund uses a sampling (optimising) technique to replicate the J.P. Morgan EMBI Global Core Index but does not employ synthetic replication or swap agreements. The KIID and PRIIPs KID documents explicitly mention the use of financial derivative instruments only for currency hedging purposes (FX forward contracts), not as an inherent part of the investment strategy, which means derivatives are used for risk management rather than return generation. There is no mention of funded or unfunded swaps, total return swaps, or counterparty exposure related to synthetic replication. The fund is not leveraged, inverse, or amplified in exposure, and there are no capital protection or structured product features. The risk profile is moderate (risk level 5 in KIID, 3 out of 7 in PRIIPs KID), consistent with emerging market bond risk but not indicative of complexity under MiFID II. Costs are straightforward with a single ongoing charge (TER) of 0.50%, no performance fees, and no complex fee structures. The monthly factsheet confirms physical replication and direct holdings in bonds, with no indication of derivative-based replication or complex underlying assets such as contingent convertible bonds or CLOs. The hedging strategy uses FX forwards solely to reduce currency risk and does not introduce complexity. No comprehension warnings or complexity flags appear in the PRIIPs KID. Therefore, the ETF does not meet the MiFID II criteria for classification as a complex financial instrument."
}