{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Derivatives used for currency hedging, optimised physical replication, securities lending",
    "classification": "non-complex",
    "supporting_data": "This UCITS ETF is a sub-fund of iShares II plc, a regulated UCITS umbrella, and is therefore automatically classified as non-complex under MiFID II Article 25(4)(a)(iv), unless it is a structured UCITS or fails the Article 57 criteria[1]. The ETF tracks the Bloomberg Barclays US Government Inflation-Linked Bond Index using optimised physical replication, meaning it primarily holds the underlying inflation-linked bonds, supporting transparency and ease of understanding for retail investors. Derivatives (specifically FX forwards) are used solely for currency hedging to reduce the effect of exchange rate fluctuations between the share class currency (GBP) and the fund's base currency (USD). This use of derivatives is limited to efficient portfolio management (EPM) and does not form an integral part of the investment strategy or introduce significant counterparty or collateral risk that would be difficult for a retail investor to understand. Securities lending is conducted as a secondary activity to generate additional income, within UCITS limits and with appropriate collateral, and does not dominate the risk profile. There is no significant leverage, no embedded derivatives, and no complex or opaque index. The risks disclosed (credit, interest rate, liquidity, counterparty) are standard for fixed income ETFs and do not indicate structural complexity. The ETF does not appear to be a structured UCITS as defined in Regulation (EU) No 583/2010, nor does it fail any of the Article 57 criteria for non-complex instruments. Therefore, despite the use of derivatives for hedging and securities lending, the ETF remains non-complex under MiFID II."
}