{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "inverse": false,
    "derivatives": false,
    "swaps": false,
    "complex_factors": "High Yield Bonds, Currency Hedging",
    "classification": "non-complex",
    "supporting_data": "The Xtrackers USD High Yield Corporate Bond UCITS ETF aims to replicate the Bloomberg US High Yield Very Liquid Index ex 144A by physically purchasing a portfolio of bonds that comprise the index or other unrelated investments as determined by the manager. The factsheet explicitly states the portfolio methodology is 'Direct Replication (physically)'. The fund uses derivatives only for currency hedging purposes to reduce the effect of exchange rate fluctuations between the USD-denominated assets and the EUR share class currency. There is no indication of synthetic replication, swap agreements, total return swaps, or unfunded/funded swap structures. The fund does not employ leverage or inverse exposure. The risk profile is moderate (risk category 5 in the KIID, but 3 in the PRIIPs KID, reflecting medium to medium-low risk), consistent with a high yield bond fund investing in non-investment grade bonds, which inherently carry credit and liquidity risks but are straightforward fixed income instruments. There are no capital protection or structured product features. Costs are simple, with a standard ongoing charge of 0.25% and no performance fees or swap fees. The fund engages in securities lending but this does not increase costs. The index tracked is a liquid, transparent bond index excluding complex or contingent convertible bonds. The use of derivatives is limited to currency hedging and risk management, not as an inherent part of the investment strategy, so derivatives are marked false. No complex underlying assets such as CoCos, CLOs, or structured products are held. No significant counterparty risk is disclosed beyond normal market risks. There is no mention of roll costs, contango, or backwardation effects. Therefore, under MiFID II criteria, this ETF is classified as non-complex."
}