{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The iShares Edge MSCI Europe Quality Factor UCITS ETF is a UCITS-compliant ETF that aims to track the MSCI Europe Sector Neutral Quality Index through physical replication. The KIID and PRIIPs KID documents confirm that the Fund invests directly in equity securities that make up the index or similar securities via optimisation techniques, without synthetic replication or use of swap agreements. There is no mention of funded or unfunded swaps, total return swaps, or derivative counterparty risk as an inherent part of the investment strategy. The Fund may use financial derivative instruments (FDIs) only for direct investment purposes, but this is limited and not a core element of the strategy, so derivatives are marked false. The monthly factsheet explicitly states the product structure as 'Physical' and does not indicate any synthetic or swap-based replication. There is no leverage, inverse exposure, or capital protection features. The risk profile is medium (4 out of 7 in PRIIPs KID, 6 in KIID but this is due to equity market risk and factor concentration, not complexity). Costs are straightforward with a TER of 0.25%, no performance fees, and no complex fee structures. Securities lending is used but only to generate additional income and does not increase complexity. No complex underlying assets such as contingent convertible bonds or CLOs are held; the portfolio consists of liquid European equities with a focus on quality factors. No capital protection or structured features are present. The risk disclosures mention counterparty risk only in the context of safekeeping and limited derivative use, not as a material complexity factor. There are no references to roll costs, contango, or backwardation effects. Overall, the Fund exhibits a clear, linear relationship to the underlying index performance with physical replication and minimal derivative use, leading to a non-complex classification under MiFID II."
}