{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The UBS (Lux) Fund Solutions - Bloomberg US Liquid Corporates 1-5 Year UCITS ETF (hedged to EUR) is a UCITS-compliant ETF that tracks the Bloomberg US Liquid Corporates 1-5 Year Total Return Index using a stratified sampling physical replication method. The fund invests predominantly in investment grade USD-denominated corporate bonds with maturities between 1 and 5 years. The KIID and PRIIPs KID documents confirm that the fund may use derivatives only for hedging currency risk and/or efficient portfolio management, not as an inherent part of the investment strategy. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty risk exposure. The fund does not employ leverage, inverse or amplified exposure, nor does it invest in complex underlying assets such as contingent convertible bonds or CLOs. The risk profile is moderate to low (risk category 4 in KIID, 2 in PRIIPs KID), consistent with direct investment in liquid, transparent fixed income securities. Costs are straightforward with a TER of 0.19%, no performance fees, and no securities lending. The monthly factsheet confirms physical stratified sampling replication and no securities lending. The PRIIPs KID includes a comprehension warning stating the product 'is not simple and may be difficult to understand,' but this is likely due to the nature of bond markets and currency hedging rather than structural complexity. Overall, the absence of synthetic replication, leverage, complex derivatives, or structured capital protection features leads to a non-complex classification under MiFID II."
}