{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Currency hedging using FX forward contracts",
        "Use of financial derivative instruments for direct investment purposes"
    ],
    "classification": "non-complex",
    "supporting_data": "The iShares Core Global Aggregate Bond UCITS ETF is classified as non-complex under MiFID II despite some derivative usage. The fund primarily uses physical replication to track the Bloomberg Barclays Global Aggregate Bond Index, which is a straightforward fixed income benchmark. While the KIID mentions the use of financial derivative instruments (FDIs) for direct investment purposes and currency hedging via FX forward contracts, these are standard practices in bond ETFs and do not introduce significant complexity. The derivatives are used for efficient portfolio management and hedging rather than for leverage or inverse exposure. The fund's risk profile is rated as '3' (moderate), and the underlying investments are transparent, liquid investment-grade bonds. The PRIIPs KID and factsheet confirm the physical replication method and the absence of complex structures like leverage or contingent bonds. The main complexity factors are the currency hedging and potential use of derivatives for direct investment, but these do not materially alter the fund's risk profile or make it unsuitable for retail investors. The fund's transparency, liquidity, and straightforward investment strategy align with typical non-complex ETFs under MiFID II.",
    "confidence": 90
}