{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The iShares Edge MSCI USA Quality Factor UCITS ETF is a UCITS-compliant equity ETF that aims to replicate the MSCI USA Sector Neutral Quality Index by physically holding the underlying equity securities in similar proportions. The KIID and PRIIPs KID documents explicitly state that the Fund intends to replicate the index by holding the equity securities directly, with only limited use of financial derivative instruments (FDIs) for direct investment purposes to produce a similar return, which is typical for efficient portfolio management and risk reduction rather than inherent strategy complexity. There is no mention of synthetic replication, swap agreements, total return swaps, or any funded/unfunded swap structures. The monthly factsheet confirms the product structure as physical replication and does not indicate any use of leverage, inverse exposure, or complex underlying assets such as contingent convertible bonds or CLOs. The risk profile is medium-high (5 out of 7), reflecting equity market risk and factor concentration risk, but not complexity from derivatives or leverage. Costs are straightforward with a TER of 0.20%, no performance fees, and no swap or derivative fees. Counterparty risk disclosures relate to standard custodial and securities lending counterparties, with no significant counterparty risk flagged. There are no capital protection or structured product features. The index tracked is a factor-based equity index, which may be less diversified but is transparent and composed of liquid US large and mid-cap stocks. No complexity flags such as leverage, synthetic replication, or complex underlying assets are present. Therefore, under MiFID II criteria, this ETF is classified as non-complex."
}