{
    "ucits": true,
    "type": "ETF",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The Franklin U.S. Equity UCITS ETF is a UCITS-compliant ETF investing primarily in large and mid-cap U.S. stocks, tracking the Linked Franklin US Equity Index (Net Return) through physical replication by holding the underlying securities in similar proportions. The fund uses derivatives only for efficient portfolio management purposes, if at all, with minimal impact on the risk-return profile. There is no indication of synthetic replication, embedded derivatives, leverage beyond UCITS limits, or complex structured products such as CLOs. The underlying index is transparent and well-documented, composed of 250 stocks selected from the Russell 1000u00ae Index using clear investment style factors. The risk profile reflects market volatility and tracking error, which are straightforward risks for retail investors to understand. Securities lending, if any, is managed within UCITS rules and does not dominate the risk profile. The fund's structure and risks are transparent and easily comprehensible to a retail investor with basic knowledge. According to MiFID II Article 25(4)(a)(iv) and Article 57 of the Commission Delegated Regulation, UCITS ETFs that physically replicate transparent indices and do not embed derivatives as part of their investment strategy are automatically classified as non-complex. This ETF meets all criteria for non-complex classification, including no significant leverage, no embedded derivatives, and transparent, frequent pricing. Therefore, no appropriateness assessment is required for execution-only sales, and no comprehension alert is mandated."
}