{
    "complex": false,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "ucits": true,
    "type": "ETF",
    "complex_factors": [
        "Global corporate bond index tracking",
        "Currency hedging via derivatives",
        "Counterparty risk from derivatives"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares Global Corp Bond UCITS ETF is classified as non-complex under MiFID II despite using derivatives for currency hedging and efficient portfolio management. The fund primarily uses physical replication (as indicated by the 'sampled' methodology in the fact sheet) and does not employ leverage or inverse strategies. While it uses derivatives (including swaps) for hedging and replication, these are standard practices in bond ETFs and do not materially alter the risk profile. The underlying index (Bloomberg Barclays Global Aggregate Corporate Bond Index) is a mainstream, transparent benchmark. The fund's risk profile (rated 4) is clearly disclosed, and the use of derivatives is limited to efficient portfolio management rather than speculative strategies. The fact that it is UCITS-compliant and tracks a widely followed index further supports its non-complex classification. The only potential complexity factors are the global nature of the bond holdings and the use of derivatives for hedging, but these are not sufficient to trigger a 'complex' classification under MiFID II.",
    "confidence": 90
}