{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Derivative use for currency hedging, securities lending, optimised replication",
    "classification": "non-complex",
    "supporting_data": "The iShares Global Corp Bond UCITS ETF USD Hedged (Acc) is a UCITS-compliant, physically replicated ETF tracking a transparent, market-cap-weighted corporate bond index. It uses derivatives (FX forwards) solely for currency hedging to reduce exchange rate risk between the fund's base currency (USD) and underlying portfolio currencies, not for synthetic replication or to achieve leveraged/inverse exposure. Securities lending is employed as a secondary activity to generate additional income, within UCITS limits and with collateralization. The ETF does not use swaps, does not employ leverage beyond UCITS limits, and does not embed complex options or structured payoffs. The underlying index is straightforward, and the fund's structure, risks, and objectives are clearly disclosed. While derivative use introduces counterparty risk, this is limited to hedging and is well-managed within UCITS rules. The ETF's featuresu2014physical replication, limited and disclosed derivative use, no embedded complex options, no leverage, and a transparent indexu2014are consistent with the presumption that UCITS ETFs are non-complex under MiFID II, absent features that make the product difficult for a retail investor with basic knowledge to understand[1]. The use of derivatives for hedging and securities lending for cost offset does not, in this case, override the UCITS presumption of non-complexity, as these are ancillary to the core passive strategy and do not introduce structural complexity or opacity that would require an appropriateness test under MiFID II[1]. If the ETF used swaps for synthetic replication or embedded complex options, or if the index itself were opaque or complex, the classification would likely be 'complex'. Here, those factors are absent."
}