{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Invesco Preferred Shares UCITS ETF",
    "investment_objective": "To track the ICE BofA Diversified Core Plus Fixed Rate Preferred Securities Net Total Return Index, less fees and expenses",
    "primary_asset_class": "Preferred Securities (hybrid equity/bond instruments)",
    "geographic_focus": "United States",
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Preferred Securities (hybrid instruments with bond-like features)",
    "classification": "non-complex",
    "supporting_data": "The 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 KIID and factsheet stating 'physical replication' and 'hold all the securities in the Index in their respective weightings'. There is no mention of synthetic replication, swap agreements, or derivative instruments used for investment purposes, only a note that derivatives may be used for risk management but not as an inherent part of the strategy, so derivatives are marked false. There is no leverage, inverse or amplified exposure language. The fund invests in preferred securities, which are hybrid instruments with some complexity but are liquid and transparent securities, not contingent convertible bonds or structured products. The risk rating is 6 on a 7-point scale in the KIID, reflecting the risk profile of preferred securities but not necessarily complexity under MiFID II. The PRIIPs KID confirms a medium risk level (4/7) and no comprehension warning or complexity flag. Costs are straightforward with a 0.50% ongoing charge and no performance fees or swap fees. Securities lending is used but is common and disclosed. No capital protection or structured features are present. Overall, the fund\u2019s physical replication, lack of leverage, absence of synthetic or swap structures, and investment in liquid preferred securities support a non-complex classification under MiFID II despite the hybrid nature of preferred shares. The complexity of preferred securities as hybrid instruments does not alone trigger a complex classification unless combined with leverage, derivatives, or structured features, which are absent here."
}