{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Vanguard USD Corporate 1-3 Year Bond GBP Hedged Distributing UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The fund is a UCITS ETF physically replicating the Bloomberg Global Aggregate Corporate \u2013 United States Dollar Index 1-3 Year through representative sampling of bonds. The KIID and PRIIPs KID confirm the use of physical acquisition of securities rather than synthetic replication or swap-based structures. The fund uses derivatives only for risk reduction, cost management, or generating incremental income, not as an inherent part of the investment strategy, so derivatives are not considered complexity drivers here. There is no leverage, inverse or amplified exposure. The risk rating is low to moderate (3 in KIID, 2 in PRIIPs KID), indicating a straightforward risk profile. The fund invests in investment grade, short duration corporate bonds with maturities 1-3 years, which are liquid and transparent. There are no capital protection or structured product features. Counterparty risk is disclosed but limited to normal operational risks (e.g., depositary insolvency). Costs are simple, with a low ongoing charge of 0.14% and no performance fees or swap fees. The PRIIPs KID states the fund is 'not simple and may be difficult to understand' but this is a standard regulatory phrase for bond ETFs with currency hedging and does not reflect synthetic or complex structures. No mention of funded or unfunded swaps, total return swaps, or complex derivatives. Currency hedging is used but does not imply synthetic replication. The fund's benchmark is a broad, transparent index of USD corporate bonds, with no complex contingent bonds or structured products. No leverage or inverse exposure is present. Therefore, under MiFID II criteria, the fund is classified as non-complex."
}