An investment in an equity portfolio should be made with an understanding of the risks associated with an investment in common stocks including the risk that the financial condition of the issuers of the equities or the general condition of the stock market may worsen.
A portfolio which is concentrated in an individual sector is subject to additional risks, including limited diversification.
The companies engaged in the agribusiness industry are subject to cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, excess capacity, product liability litigation and governmental regulation and subsidies.
The companies engaged in the materials sector are subject to price and supply fluctuations, excess capacity, economic recession, domestic and international politics, government regulations, volatile interest rates, consumer spending trends and overall capital spending levels.
Risks associated with investing in foreign securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less liquid, less regulated and more volatile than the U.S. and developed foreign markets.
ETFs are subject to various risks, including management's ability to meet the fund's investment objective, and to manage the fund's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding ETFs or their underlying investments change. Unlike open-end funds, which trade at prices based on a current determination of the fund's net asset value, ETFs frequently trade at a discount from their net asset value in the secondary market.
Certain of the ETFs invest in foreign and domestic inflation-protected
securities. Inflation-protected securities are subject to numerous risks
including changes in interest rates, economic recession and deterioration
of the bond market or investors� perception thereof.
Certain of the trust's holdings invest in foreign and domestic inflation-protected
securities. Inflation-protected securities are subject to numerous risks
including changes in interest rates, economic recession and deterioration
of the bond market or investors' perception thereof.
Certain of the ETFs invest in REITs. Companies involved in the real estate
industry are subject to changes in the real estate market, vacancy rates
and competition, volatile interest rates and economic recession.
Certain of the ETFs in the portfolio invests in senior loans. Senior loans are generally below investment
grade quality (�high-yield� securities or �junk� bonds). Investing in such securities should be viewed as
speculative and you should review your ability to assume the risks associated with investments which
utilize such securities. High-yield securities are subject to numerous risks including higher interest
rates, economic recession, deterioration of the high-yield securities market, possible downgrades and
defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated
securities and are affected by short-term credit developments to a greater degree.
An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.
The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.
You should carefully consider the trust's investment objectives, risks, and charges and expenses before investing. Contact your financial advisor or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the trust. Read it carefully before you invest.
This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.
Not FDIC Insured, Not Bank Guaranteed and May Lose Value.