{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Complex Index (STOXX Global Metaverse Index)",
        "ESG Screening Complexity"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares Metaverse UCITS ETF is classified as non-complex under MiFID II for the following reasons: 1. Physical Replication: The fund primarily uses physical replication to track the STOXX Global Metaverse Index, as confirmed by the KIID ('The Fund intends to replicate the Index by holding the equity securities, which make up the Index, in similar proportions to it'). 2. No Leverage or Inverse Exposure: The fund does not employ leverage or inverse strategies, and there are no references to amplified returns or gearing. 3. Minimal Derivative Use: While the KIID mentions the potential use of financial derivative instruments (FDIs) to help achieve the investment objective, it specifies that 'the use of FDIs is expected to be limited for this share class.' The PRIIPs KID and factsheet further confirm that the fund uses a 'physical' methodology. 4. Transparent Underlying Assets: The fund invests in equity securities of companies involved in metaverse-related technologies, which are relatively straightforward to understand. 5. Risk Profile: The fund's risk rating of 6 (on a scale of 1-7) is within the typical range for equity funds and does not indicate excessive complexity. 6. Counterparty Risk: The fund does engage in securities lending, which introduces some counterparty risk, but this is a common practice among ETFs and does not necessarily make the fund complex. 7. Complex Index: The STOXX Global Metaverse Index is complex due to its ESG screening criteria and the specific metaverse technology themes it tracks. However, the fund's physical replication method mitigates the complexity of the index for investors. 8. No Capital Protection or Structured Features: The fund does not offer capital guarantees or structured return features, which are common complexity triggers. The main complexity factor is the underlying index's focus on metaverse technologies, which may require some understanding of emerging tech trends. However, this does not meet the MiFID II threshold for complexity, as the fund's structure remains transparent and straightforward.",
    "confidence": 90
}