{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETF",
        "leverage": false,
        "derivatives": true,
        "swaps": false,
        "inverse": false,
        "replication_method": "physical",
        "complex_factors": "The ETF invests in high yield corporate bonds. These are sub-investment grade and carry a higher risk of default, impacting performance. It employs currency hedging using derivatives, which introduces complexity. The index is market-value weighted, which can be complex for retail investors to fully understand.The Fund uses optimizing techniques which may include the strategic selection of securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for direct investment purposes. The use of derivatives and optimization techniques introduce complexity.",
        "classification": "complex",
        "supporting_data": "The iShares Global High Yield Corp Bond UCITS ETF (IE00091SR7N7) is classified as complex due to its investment strategy and the nature of the underlying assets. According to the MiFID II guidelines, as detailed in the provided documents, the use of derivatives, even for currency hedging, contributes to complexity. Furthermore, the ETF's investment in high yield corporate bonds, which are sub-investment grade, introduces credit risk and the potential for default. This risk profile, combined with the use of derivative instruments, makes it difficult for a retail investor with basic knowledge to fully understand the risks involved, as highlighted in the ESMA Supervisory Briefing on Appropriateness and execution-only (August 2023). The reliance on derivatives for currency hedging and optimization techniques aligns with the factors indicating complexity, as detailed in sections 2.3 and 2.4 of the ESMA guidelines as well as CESR document on MiFID complex and non-complex financial instruments. Given that derivatives are integral to the ETF's strategy, and not solely used for EPM purposes with negligible impact, per MiFID II Article 25(3) and related ESMA guidance, this ETF would be complex.The fund also uses optimising techniques which may include the strategic selection of securities that make up the Index or other FI securities which provide similar performance to certain constituent securities which may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for direct investment purposes."
    }
}