{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "Preferred Securities with hybrid equity/bond features",
    "classification": "non-complex",
    "supporting_data": "The Invesco Preferred Shares UCITS ETF physically replicates the ICE BofA Diversified Core Plus Fixed Rate Preferred Securities Index by holding the underlying preferred securities directly, as confirmed by the factsheet and KIID. There is no mention of synthetic replication, swap agreements, or total return swaps. The fund uses FX forwards solely for currency hedging, which is considered risk management rather than inherent derivative use, so derivatives are marked false. There is no leverage or inverse exposure. The fund invests in preferred securities, which are hybrid instruments with some complexity due to their equity-like and bond-like characteristics, including perpetual subordinated debt and potential deferral of distributions, but these do not trigger a complex classification under MiFID II by themselves. The risk indicator is medium (4 out of 7 in PRIIPs, 6 out of 7 in KIID), reflecting market and credit risks but not complexity from structure or leverage. Costs are straightforward with no performance fees or swap fees. No capital protection or structured features are present. The fund is UCITS compliant and uses physical replication. Therefore, despite the underlying asset complexity (preferred shares), the fund itself is classified as non-complex under MiFID II criteria."
}