{
    "type": "ETF",
    "ucits": true,
    "fund_name": "UBS BBG US Liquid Corp UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": "Use of currency forwards (swaps) for hedging",
    "classification": "complex",
    "supporting_data": "The fund is a UCITS ETF investing primarily in US investment grade corporate bonds, tracking the Bloomberg US Liquid Corporates Total Return Index with a stratified sampling approach. The replication is mainly physical but the fund uses derivatives, specifically currency forwards (one-month forward rate contracts) to hedge currency risk between USD and GBP. The KIID and PRIIPs KID confirm that derivatives are used for hedging purposes, not for leverage or speculative exposure. However, the presence of swap agreements (currency forwards) and derivative instruments for currency hedging means the fund uses swaps inherently in its strategy. The fund does not engage in securities lending, has no leverage, no inverse or amplified exposure, and invests in liquid, investment grade bonds. The risk profile is moderate (5 in KIID, 3 in PRIIPs KID), reflecting bond market volatility and credit risk, not derivative complexity. The monthly factsheet confirms physical stratified sampling and currency hedging via FX forwards, with no mention of total return swaps or synthetic replication. According to MiFID II criteria, any use of swaps (even unfunded currency forwards) classifies the fund as complex, despite the low risk profile and absence of leverage. There are no capital protection features or structured contingent returns. Costs are straightforward with no performance fees. The complexity arises solely from the use of derivative instruments (currency forwards/swaps) as an inherent part of the fund's strategy, which under MiFID II rules triggers a complex classification."
}