{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "inverse": false,
    "derivatives": false,
    "swaps": false,
    "complex_factors": "Sub-investment grade bonds, ESG screening, Optimisation techniques",
    "classification": "non-complex",
    "supporting_data": "The iShares $ High Yield Corp Bond ESG UCITS ETF aims to track the Bloomberg Barclays MSCI US Corporate High Yield Sustainable BB+ SRI Bond Index by investing primarily in a portfolio of fixed income securities (bonds) that make up the index. The fund uses physical replication with sampled methodology, investing directly in underlying bonds rather than synthetic replication or swap-based structures. The KIID and PRIIPs KID documents confirm the use of physical securities and only mention limited use of financial derivative instruments (FDIs) for direct investment purposes, not as an inherent part of the replication strategy. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty exposure related to derivatives. The fund does not employ leverage, inverse or amplified exposure, nor does it have capital protection or structured features. The risk profile is moderate (risk level 3-4), consistent with sub-investment grade bond risk, credit risk, and liquidity risk, but without complexity flags such as high derivative use or leverage. Costs are straightforward with a TER of 0.25%, no performance fees, and no swap or derivative fees. The monthly factsheet confirms a physical product structure with over 1,100 holdings, no indication of synthetic replication or swap usage, and no leverage. The complexity arises mainly from the underlying asset class (high yield bonds, which are inherently more complex than plain equities or government bonds) and ESG screening reducing the investable universe, but these factors alone do not trigger a MiFID II complex classification. There is no PRIIPs comprehension warning or other complexity flags. Therefore, the ETF is classified as non-complex under MiFID II."
}