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.
Because the portfolio is concentrated in companies headquartered, or with a significant presence,
in Canada, the portfolio may present more risks than a portfolio which is broadly diversified over
several regions.
Certain of the common stocks in the portfolio are issued by Canadian energy
companies that are heavily invested in real estate, oil and gas, pipelines and other infrastructure in
Canada. Due to this lack of diversification these companies are particularly vulnerable to changes
in demand for fossil fuels and fluctuations in oil and gas prices.
The companies engaged in the energy sector are subject to price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments.
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.
An investment in a portfolio containing small-cap companies is subject to additional risks, as the share prices of small-cap companies are often more volatile than those of larger companies due to several factors, including limited trading volumes, products, financial resources, management inexperience and less publicly available information.
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.
All data used for the sector and style classification comparisons is from
Bloomberg Finance L.P, which we believe to be reliable, but do not take responsibility
for its accuracy.
The style and capitalization characteristics used to describe the stocks are designed to help you
understand how they fit into your overall investment plan. Due to changes in the value of the stocks
the characteristics may vary over time. In general, growth stocks have high relative price-to-book
ratios while value stocks have low relative price-to-book ratios. In determining market capitalization
characteristics, we analyze the market capitalizations of the 3,000 largest stocks in the U.S. (excluding
foreign securities, ADRs, limited partnerships and regulated investment companies) on a monthly basis.
Companies with market capitalizations among the largest 10% are considered Large-Cap securities, the next
20% are considered Mid-Cap securities and the remaining securities are considered Small-Cap securities.
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.