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Interest Rate Hedge, 63  Ticker: FRDERX
 
Description
A unit investment trust that seeks above average total return by investing in assets we believe are attractive should interest rates rise. The portfolio is diversified across stocks of companies that have a history of dividend growth as well as closed-end funds which invest in convertible securities, TIPS, master limited partnerships, limited duration bonds and REITs. There can be no assurance that the trust will achieve a positive return if interest rates rise.
 
Summary
Product Code: IRHG63
Portfolio Status: Secondary
Initial Offer Date: 02/25/2013
Secondary Date: 03/12/2013
Portfolio Ending Date: 03/03/2015
Tax Structure: RIC
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $10.2737
POP(*): Not Avail
* As of Trade Date: 10/30/2014 4:00pm ET

 Estimated Net Annual Distribution Per Unit
Estimated Net Annual Distribution Per Unit * $0.5126
As of 10/27/2014
* The estimates are based on annualizing the most recent dividends declared by the issuers of the securities included in the portfolio. There is no guarantee that the issuers of the securities included in the portfolio will declare distributions in the future or that, if declared, they will either remain at current levels or increase over time.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 Microsoft Corporation MSFT 4.70%
 Intel Corporation INTC 4.65%
 Medtronic, Inc. MDT 4.19%
 Western Asset/Claymore Inflation-Linked Opportunities & Income Fund WIW 4.06%
 Western Asset/Claymore Inflation-Linked Securities & Income Fund WIA 4.04%
 Honeywell International Inc. HON 3.81%
 ConocoPhillips COP 3.41%
 Aflac Incorporated AFL 3.33%
 United Technologies Corporation UTX 3.28%
 Baxter International Inc. BAX 2.95%
 Salient Midstream & MLP Fund SMM 2.92%
 Chevron Corporation CVX 2.82%
 Salient MLP & Energy Infrastructure Fund SMF 2.72%
 Target Corporation TGT 2.69%
 Calamos Convertible and High Income Fund CHY 2.67%
 Fiduciary/Claymore MLP Opportunity Fund FMO 2.66%
 Calamos Convertible Opportunities and Income Fund CHI 2.64%
 Kayne Anderson Energy Total Return Fund, Inc. KYE 2.61%
 ClearBridge Energy MLP Fund CEM 2.57%
 Nuveen Energy MLP Total Return Fund JMF 2.54%
 ClearBridge Energy MLP Opportunity Fund EMO 2.51%
 Tortoise MLP Fund, Inc. NTG 2.49%
 AllianzGI Convertible & Income Fund NCV 2.46%
 Advent Claymore Convertible Securities and Income Fund II AGC 2.24%
 Cohen & Steers Quality Income Realty Fund, Inc. RQI 1.96%
 Cohen & Steers REIT and Preferred Income Fund, Inc. RNP 1.91%
 Nuveen Real Estate Income Fund JRS 1.82%
 Putnam Master Intermediate Income Trust PIM 1.81%
 Western Asset Mortgage Defined Opportunity Fund Inc. DMO 1.77%
 Cohen & Steers Limited Duration Preferred and Income Fund, Inc. LDP 1.75%
 Wells Fargo Advantage Multi-Sector Income Fund ERC 1.63%
 Alpine Global Premier Properties Fund AWP 1.60%
 Blackstone/GSO Strategic Credit Fund BGB 1.60%
 Credit Suisse Asset Management Income Fund, Inc. CIK 1.58%
 Eaton Vance Limited Duration Income Fund EVV 1.58%
 Prudential Short Duration High Yield Fund Inc. ISD 1.55%
 Nuveen Mortgage Opportunity Term Fund JLS 1.50%
 MFS Intermediate Income Trust MIN 1.46%
 RMR Real Estate Income Fund RIF 1.43%
 
Total Number of Holdings:    39
Underlying Securities information represented above is as of 10/29/2014 but will vary with future fluctuations in the market.

Closed-end funds 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 the funds 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, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds may employ the use of leverage which increases the volatility of such funds.

Convertible securities are bonds, preferred stocks, and other securities that pay interest or dividends and are convertible into common stocks. As such, convertible securities have some characteristics of both bonds and common stocks, making them tend to be less sensitive to interest rate changes than bonds of comparable maturity and quality, and less sensitive to stock market changes than common stocks.

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.

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.

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 ETFs held by the trust invest in derivatives such as swap agreements to gain inverse exposure to its target index. As such, the ETF will be subject to credit risk with respect to the amount it expects to receive from counterparties to derivatives and repurchase agreements entered into by the ETF. If a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the value of the Trust's investment in the ETF may decline.

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.

Investing in high-yield securities or "junk" bonds 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 junk bond 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.

Investment grade bonds are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade bond market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

Investments in Master Limited Partnerships (MLPs) are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. There are certain tax risks associated with MLPs, including the risk that U.S. taxing authorities could challenge the trust's treatment of the MLPs for federal income tax purposes. These tax risks could have a negative impact on the aftertax income available for distribution by the MLPs and/or the value of the trust's investments.

The value of mortgage-backed securities will decline with increases in interest rates.The value of mortgage-backed securities will also fluctuate with changes in the general condition of the mortgage-backed securities market, changes in inflation rates or when political or economic events affecting Ginnie Mae occur.

Options are subject to various risks including that their value may be adversely affected if the market for the option becomes less liquid or smaller. In addition, options will be affected by changes in the value and dividend rates of the stock subject to the option, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the common stock and the remaining time to expiration.

Preferred stocks are equity securities of the issuing company which pay income in the form of dividends. Preferred stocks are typically subordinated to bonds and other debt instruments in a company�s capital structure, and therefore will be subject to greater credit risk than those debt instruments.

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.

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