{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Xtrackers USD High Yield Corporate Bond UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The ETF is a UCITS-compliant fund physically replicating the Bloomberg US High Yield Very Liquid Index ex 144A by directly purchasing a portfolio of bonds. The fund uses derivatives only for currency hedging purposes to reduce exchange rate fluctuations between the USD-denominated assets and the GBP share class currency, not as an inherent part of the investment strategy. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty exposure related to replication. The fund is unleveraged, with no leverage or inverse exposure. The underlying assets are high yield corporate bonds, which are non-investment grade but liquid and tradable, without complex structured products or contingent convertible bonds. 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 direct bond exposure and currency hedging. Costs are straightforward with a single ongoing charge of 0.25% and no performance fees or swap fees. Securities lending is minimal and revenue sharing does not increase costs. The factsheet confirms direct physical replication and no use of swaps for replication. There are no capital protection or structured features. The PRIIPs KID does not include any comprehension warnings or complexity flags. Therefore, under MiFID II criteria, the fund is classified as non-complex because it uses physical replication, has no leverage or synthetic elements, invests directly in liquid bonds, and derivatives are used solely for currency risk management rather than as a core strategy element."
}