{
    "fund_name": "iShares Global High Yield Corp Bond CHF Hedged UCITS ETF (Dist)",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Use of FX forward contracts for currency hedging",
        "Investment in high-yield corporate bonds (sub-investment grade)",
        "Potential counterparty risk from derivative usage"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF primarily uses physical replication for its core investment strategy, tracking the Markit iBoxx Global Developed Markets Liquid High Yield Capped Index. While it employs FX forward contracts for currency hedging (a common practice in international bond ETFs), these are straightforward derivatives used for risk management rather than speculative purposes. The fund's risk profile is clearly disclosed as medium risk (level 4 on the scale), and the underlying assets (high-yield corporate bonds) are transparent and liquid. The use of derivatives is limited to hedging and does not create leverage or inverse exposure. The ETF is UCITS-compliant, which inherently imposes strict limits on complexity. While high-yield bonds carry credit risk, this is a standard feature of the asset class and does not make the ETF complex under MiFID II. The fact sheet confirms the fund uses physical replication with derivative usage limited to hedging, supporting the non-complex classification.",
    "confidence": 90
}