{
    "complex": true,
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Contingent Convertible Bonds"
    ],
    "classification": "complex",
    "supporting_data": "The Invesco AT1 Capital Bond UCITS ETF is classified as complex primarily due to its exposure to Contingent Convertible Bonds (CoCos). These bonds are inherently complex instruments that may convert into equity or suffer principal write-downs upon predefined triggers, making their risk profile difficult for retail investors to fully understand. While the ETF uses physical replication and does not employ leverage or synthetic replication, the underlying assets (AT1 bonds) introduce significant complexity due to their contingent features and credit risk characteristics. The KIID explicitly mentions the risks associated with CoCos, including liquidity risk and potential principal loss, which are not typical of standard bond investments. Additionally, the ETF's risk rating of 5 further supports its classification as complex under MiFID II.",
    "confidence": 90
}