{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETF",
        "replication_method": "physical",
        "derivatives": false,
        "swaps": false,
        "leverage": false,
        "inverse": false,
        "complex_factors": [
            "Credit Risk",
            "Liquidity Risk",
            "Counterparty Risk"
        ],
        "classification": "non-complex",
        "supporting_data": "The iShares Fallen Angels High Yield Corp Bond USD (Dist) Share Class is a UCITS ETF. Its primary objective is to track the Bloomberg Barclays Global Corporate ex EM Fallen Angels 3% Issuer Capped Index. The investment policy states that the ETF aims to invest in fixed income securities that make up the Index and comply with its credit rating requirements. Specifically, it tracks sub-investment grade corporate bonds that were previously investment grade and have since been downgraded. The ETF uses physical replication, holding the underlying securities to achieve its objective. While the Key Investor Information Document mentions potential risks like counterparty risk and credit risk associated with sub-investment grade bonds, these are inherent market risks rather than structural complexities arising from derivatives or intricate payoff mechanisms. The rules state that UCITS ETFs are presumed non-complex unless they have features difficult for retail investors to understand. This ETF's structure, replication method (physical), and investment objective are generally transparent and understandable to a retail investor with basic financial knowledge. The use of 'optimising techniques' may include financial derivative instruments (FDIs), but the KID states these may be used for 'direct investment purposes' and their extent for EPM is not specified. However, the core replication is physical. The primary risks highlighted (credit risk, liquidity risk, counterparty risk) are common to bond investments and do not, by themselves, render the ETF complex under MiFID II, as long as the derivative use is not integral to the strategy or the structure is not opaque. Securities lending is also mentioned as a way to generate income, which is a common practice for ETFs and does not automatically trigger complexity if managed appropriately and within UCITS rules. The index itself is a corporate bond index with a focus on 'Fallen Angels', which may introduce specific credit risk but does not inherently imply structural complexity that would make the ETF itself complex. The KID does not indicate any embedded derivatives, leverage, or other complex structures that would typically lead to a complex classification. Therefore, based on the information provided and the MiFID II framework for UCITS ETFs, this ETF is classified as non-complex."
    }
}