{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Use of derivatives for risk management and efficient portfolio management; exposure to emerging markets risks; securities lending; potential operational and custody risks in China and Hong Kong markets",
    "classification": "non-complex",
    "supporting_data": "The Xtrackers MSCI China UCITS ETF is a UCITS-compliant ETF that aims to replicate the MSCI China TRN Index by buying all or a substantial number of the securities in the index, indicating physical replication. The fund uses derivatives only for risk management and efficient portfolio management purposes, such as hedging currency risk and managing inflows/outflows, which is consistent with non-complex classification under MiFID II Article 254 and Delegated Regulation EU 2017/565 Article 57. The derivatives use is limited and does not form an integral part of the investment objective, thus not triggering complexity. The ETF does not employ leverage beyond UCITS limits, nor does it embed derivatives or structured products that would automatically render it complex. Securities lending is used but is well-managed within UCITS rules and does not dominate the risk profile. The fund targets retail investors with basic knowledge, and its structure and risks (market volatility, tracking error) are straightforward and transparent. The underlying MSCI China Index is a transparent equity index, supporting non-complexity. Although the fund is exposed to emerging markets risks and operational risks related to China and Hong Kong markets, these are market risks rather than structural complexity. Therefore, the ETF meets the criteria for non-complex instruments and does not require a comprehension alert in the PRIIPs KID."
}