{
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Use of derivatives for optimisation",
        "Minimum volatility index methodology"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares Edge MSCI World Minimum Volatility UCITS ETF is classified as non-complex under MiFID II. While it uses derivatives for optimisation (as stated in the KIID: 'The Fund uses optimising techniques... which may also include the use of financial derivative instruments (FDIs)'), the derivatives are used for efficient portfolio management rather than for leverage or inverse exposure. The replication method is physical, and the fund invests directly in equity securities that make up the MSCI World Minimum Volatility Index. The index methodology, while complex in its selection process, does not introduce additional complexity to the ETF's structure or risk profile. The fund is UCITS-compliant, which aligns with MiFID II's preference for standardised, transparent products. The risk profile is rated 6/7, but this reflects the inherent volatility of equity markets rather than structural complexity. The PRIIPs KID and factsheet confirm the physical replication approach and the absence of synthetic structures or counterparty risk beyond standard market exposure.",
    "confidence": 90
}