{
    "success": true,
    "data": {
        "leverage": false,
        "derivatives": false,
        "swaps": false,
        "inverse": false,
        "replication_method": "physical",
        "ucits": true,
        "type": "ETF",
        "complex_factors": [
            "Counterparty risk from derivatives (FX forward contracts) used for currency hedging, explicitly highlighted as a 'Particular risk' in the KID, indicating difficulty for retail investors to understand.",
            "Counterparty risk from securities lending, also explicitly highlighted as a 'Particular risk' in the KID.",
            "Complex underlying index methodology involving multi-layered ESG screening, exclusionary criteria, and a 'best-in-class' selection approach, which is conceptually more intricate than a standard market index and may require advanced understanding."
        ],
        "classification": "complex",
        "supporting_data": "The iShares MSCI World SRI UCITS ETF USD Hedged (Dist) is a UCITS compliant Exchange Traded Fund that primarily employs physical replication by holding the underlying equity securities of its benchmark index. While UCITS ETFs are generally presumed non-complex, and physical replication supports this, the presumption is overturned due to specific features that make the ETF's risks and payoff potentially difficult for retail investors with basic knowledge to understand. Firstly, the Fund utilizes Financial Derivative Instruments (FDIs), specifically FX forward contracts, for currency hedging purposes. Although this use is for efficient portfolio management (managing risk) rather than as an inherent element of the core strategy, the Key Investor Information (KII) document explicitly identifies 'Counterparty Risk' as a 'Particular risk not adequately captured by the risk indicator', citing the insolvency of institutions acting as counterparty to derivatives. MiFID II guidance indicates that even limited derivative use can lead to a complex classification if it introduces risks, such as counterparty risk, that are not easily understood by retail investors.Secondly, the Fund engages in securities lending to generate additional income. Similar to derivatives, this activity also introduces 'Counterparty Risk', which is again highlighted in the KII as a 'Particular risk not adequately captured by the risk indicator'. This further contributes to the overall complexity of the fund's risk profile.Finally, the underlying benchmark, the MSCI World SRI Select Reduced Fossil Fuel Index, is not a simple, broad market index. Its construction involves a sophisticated, multi-layered methodology that includes environmental, social, and governance (ESG) screening, exclusion of companies based on specific activities and controversies, and a 'best-in-class' selection process. While transparent in its documentation, the conceptual intricacies of this index's methodology can be challenging for an average retail investor to fully grasp, impacting their ability to make an informed judgment on the ETF's performance drivers and risk characteristics. MiFID II rules suggest that if an underlying index is complex, it can contribute to the ETF's overall complex classification.Therefore, the combination of explicit counterparty risks arising from both derivatives and securities lending, coupled with the complex methodology of the underlying ESG index, results in a 'complex' classification for this UCITS ETF under MiFID II."
    }
}