{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "High Yield Bonds",
        "Currency Hedging via FX Forwards"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares  High Yield Corp Bond UCITS ETF (USD Hedged) is classified as non-complex under MiFID II for the following reasons: 1. Physical replication is used as the primary replication method, with the fund investing directly in high-yield corporate bonds. 2. While derivatives (specifically FX forwards) are used for currency hedging, this is a standard practice in hedged ETFs and does not introduce significant complexity or additional risk beyond what is expected in a hedged bond ETF. 3. The fund does not use leverage, inverse strategies, or synthetic replication. 4. The underlying index (Markit iBoxx Euro Liquid High Yield Index) consists of liquid, sub-investment grade corporate bonds, which are relatively straightforward for investors to understand. 5. The risk profile is clearly disclosed as medium to high, with risks such as credit risk, liquidity risk, and counterparty risk (related to derivatives) being appropriately highlighted. 6. The fund is UCITS-compliant, which inherently imposes certain transparency and risk management standards. The use of derivatives is limited to hedging and does not materially alter the fund's risk profile or make it harder for retail investors to understand. The fund's complexity factors are limited to the nature of high-yield bonds and the currency hedging mechanism, neither of which are sufficient to trigger a 'complex' classification under MiFID II.",
    "confidence": 90
}