{
    "fund_name": "Franklin US Dividend Tilt UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [],
    "classification": "non-complex",
    "supporting_data": "The Franklin US Dividend Tilt UCITS ETF is classified as non-complex under MiFID II regulations. The fund uses physical replication to track the Morningstar US Dividend Enhanced Select Index-NR, holding the underlying securities directly. While the fund may use derivatives for efficient portfolio management (EPM), this is a common practice for reducing tracking error and transaction costs, and does not introduce significant additional risk or complexity. The fund does not employ leverage, inverse strategies, or synthetic replication, and its risk profile is straightforward, focusing on large and mid-cap US equities with a dividend tilt. The KIID and factsheet indicate that the fund is UCITS-compliant, which imposes strict regulatory safeguards, and the risk disclosures are typical for an equity ETF without unusual or complex risks. The absence of capital protection mechanisms, structured features, or exposure to illiquid assets further supports the non-complex classification.",
    "confidence": 95,
    "risk_level": "The fund's risk level is moderate, consistent with its equity exposure and dividend-focused strategy. The risk indicators in the KIID align with typical equity market risks, and there are no additional complexities introduced by the fund's structure or investment approach."
}