{
    "fund_name": "First Trust SMID Rising Dividend Achievers 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 ETF is classified as non-complex under MiFID II based on the following analysis:1. **Replication Method**: The fact sheet explicitly states the replication method is 'Physical - Full Replication', meaning the ETF directly holds the underlying securities of the Nasdaq US Small Mid Cap Rising Dividend Achievers Index. There is no mention of synthetic replication, swaps, or derivative instruments in the KIID or fact sheet.2. **Leverage and Inverse Exposure**: The ETF does not use leverage or inverse strategies. The KIID and fact sheet confirm the fund seeks to replicate the index's performance without amplification or gearing.3. **Underlying Asset Complexity**: The index tracks small and mid-cap U.S. equities with a focus on dividend growth, which are generally considered straightforward and transparent. The fact sheet lists the top 10 holdings, which are all common equities.4. **Risk Profile**: The ETF has a risk rating of 7 (high risk), but this is typical for equity funds and does not indicate complexity. The risks are clearly disclosed and relate to market volatility, not structural or derivative-related risks.5. **Costs and Charges**: The fee structure is simple (0.60% TER), with no performance fees or complex cost arrangements.6. **UCITS Compliance**: The ETF is UCITS-compliant, which inherently limits the use of complex strategies and derivatives.7. **No Complexity Flags**: There are no capital protection mechanisms, structured products, or contingent bonds in the portfolio. The fact sheet and KIID do not contain any warnings about complexity or suitability for retail investors.**Conclusion**: The ETF is a straightforward, physically replicated equity fund with no derivative exposure or complex features. It qualifies as non-complex under MiFID II.",
    "confidence": 95
}