{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Xtrackers II ESG Global Aggregate 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 bond ETF tracking the Bloomberg MSCI Global Aggregate Sustainable and SRI Currency Neutral Index. It uses physical replication (direct purchase of underlying bonds) as confirmed by the factsheet stating 'Direct Replication (physically)'. The fund invests in investment-grade fixed-rate bonds globally, including government, corporate, and securitized bonds, with ESG screening applied. The fund employs derivatives only for currency hedging purposes to reduce foreign exchange risk between the fund's USD assets and the GBP share class currency. This use of derivatives is risk management rather than an inherent part of the investment strategy, so derivatives are marked false for complexity. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty risk exposure. The fund does not use leverage or inverse strategies, and the risk indicator is low (category 2 out of 7 in PRIIPs KID). There are no capital protection or structured product features. Costs are straightforward with a single ongoing charge of 0.10% and no performance fees. The index tracked is broad and transparent, with no complex structured products or contingent bonds involved. The fund's risk disclosures mention derivatives risk only in the context of currency hedging, not as a complexity driver. Therefore, the ETF does not meet MiFID II criteria for a complex financial instrument."
}