{
    "fund_name": "iShares MSCI USA SRI UCITS ETF GBP Hedged (Dist)",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Currency hedging using derivatives",
        "ESG screening complexity",
        "Counterparty risk from derivatives"
    ],
    "classification": "non-complex",
    "supporting_data": "The ETF uses physical replication for its core investment strategy, tracking the MSCI USA SRI Select Reduced Fossil Fuel Index. While it uses derivatives for currency hedging (FX forward contracts), this is a common practice in hedged ETFs and doesn't significantly alter the risk profile. The ESG screening process is complex but doesn't make the ETF inherently complex for investors. The fund's risk rating of 6 (on a 1-7 scale) is moderate, and the use of derivatives is limited to hedging purposes rather than for leverage or synthetic replication. The fund's prospectus confirms it does not use swaps or other complex derivative structures. The main complexity factors are the ESG screening methodology and the currency hedging strategy, but these are standard for this type of ETF and do not trigger a 'complex' classification under MiFID II.",
    "confidence": 90
}