{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The Xtrackers II Eurozone Government Bond 3-5 UCITS ETF aims to replicate the Markit iBoxx EUR Eurozone 3-5 Index by directly purchasing a portfolio of government bonds with maturities between 3 and 5 years. The fund uses physical replication as confirmed by the factsheet stating 'Direct Replication (physically)'. The fund employs derivatives only for currency hedging purposes to reduce foreign exchange risk between the fund's EUR assets and the GBP share class currency, which is a risk management use rather than an inherent part of the investment strategy. There is no mention of synthetic replication, swap agreements, total return swaps, or counterparty exposure related to replication. The fund does not use leverage or inverse strategies, and the risk profile is low (risk level 2 out of 7), consistent with a straightforward bond index tracking ETF. The underlying assets are investment grade Eurozone government bonds, which are liquid and transparent. There are no capital protection or structured product features. Costs are simple, with a low ongoing charge and no performance fees. Securities lending is used but does not add complexity as it is a standard revenue enhancement technique. The PRIIPs KID does not include any comprehension warnings or complexity flags. Overall, the fund exhibits none of the complexity indicators such as synthetic replication, leverage, complex underlying assets, or capital protection mechanisms. Therefore, under MiFID II, this ETF is classified as non-complex."
}