ETF Growth and Income Portfolio, April 2012
Ticker Symbol: FTAOMX
|Equity Core Holdings (70.10%):
||Vanguard Emerging Markets ETF
||Vanguard MSCI Europe ETF
||Vanguard Pacific ETF
||iShares Cohen & Steers Realty Majors Index Fund
|US Large Cap (32.03%):
||iShares S&P 500 Growth Index Fund
||iShares S&P 500 Value Index Fund
|US Mid Cap (11.05%):
||iShares S&P MidCap 400 Index Fund
|US Small Cap (11.99%):
||iShares Russell 2000 Index Fund
|Fixed Income Core Holdings (19.86%):
||PowerShares Emerging Markets Sovereign Debt Portfolio
||SPDR Barclays Capital International Treasury Bond ETF
|US Corporate (7.96%):
||iShares Barclays 1-3 Year Credit Bond Fund
||iShares iBoxx $ High Yield Corporate Bond Fund
||iShares iBoxx $ InvesTop Investment Grade Corporate Bond Fund
||PowerShares Senior Loan Portfolio
|US Mortgage-Backed (1.99%):
||iShares Barclays MBS Fixed-Rate Bond Fund
|US Treasury (7.93%):
||iShares Barclays 1-3 Year Treasury Bond Fund
||iShares Barclays 7-10 Year Treasury Bond Fund
||iShares Barclays TIPS Bond Fund
|Satellite Holdings (10.04%):
||iShares Nasdaq Biotechnology Index Fund
||Vanguard Consumer Discretionary ETF
||Vanguard Energy ETF
||Vanguard Financials ETF
||Vanguard Information Technology ETF
*As of the close of business on 4/3/12.
Market values are for reference only and are not indicative of your individual
|Not FDIC Insured Not Bank Guaranteed May Lose Value
|Initial Date of Deposit
|Initial Public Offering Price
||$10.00 per Unit
| Portfolio Ending Date
|Estimated Net Annual Distribution per Unit*
|Fee Account Cash CUSIP
|Fee Account Reinvestment CUSIP
*There is no guarantee that the issuers of the securities included in the portfolio will declare dividends in the future or that, if declared, they will either remain at current levels or increase over time.
|Sales Charges (based on a $10 public offering
|Transactional Sales Charges:
|Creation and Development Fee:
|Maximum Sales Charge:
The deferred sales charge will be deducted in three monthly installments commencing
July 20, 2012.
|Creation and Development Fee:
|Maximum Sales Charge:
*Standard accounts sales charges apply to units purchased as an ineligible
The creation and development fee is a charge of $.050 per unit collected at
the end of the initial offering period. If the price you pay exceeds $10 per
unit, the creation and development fee will be less than 0.50%; if the price
you pay is less than $10 per unit, the creation and development fee will exceed
If you invest at least $50,000, the maximum sales charge is reduced as follows:
|$50,000 but less than $100,000
|$100,000 but less than $250,000
|$250,000 but less than $500,000
|$500,000 but less than $1,000,000
|$1,000,000 or more
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully 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 portfolio. Read it carefully
before you invest.
An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning ETFs which invest in common stocks and taxable bonds.
Common stocks are subject to risks such as an economic recession and the possible
deterioration of either the financial condition of the issuers of the equity
securities or the general condition of the stock market.
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 small-cap companies. Small-cap companies are
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, or financial resources, management inexperience
and less publicly available information.
One of the ETFs invests 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 invest in investment grade securities. Investment grade
securities are subject to numerous risks including higher interest rates, economic
recession, deterioration of the investment grade market or investors' perception
thereof, possible downgrades and defaults of interest and/or principal.
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.
Certain of the exchange-traded funds invest in high-yield securities or "junk"
bonds. Investing in high-yield 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 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.
Certain of the ETFs invest in securities of foreign issuers which are subject
to additional risks, including currency fluctuations, political risks, withholding,
the lack of adequate financial information, and exchange control restrictions
impacting foreign issuers. 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.
Certain of the ETFs invest in U.S. Treasury obligations which are subject to
numerous risks including higher interest rates, economic recession and deterioration
of the bond market or investors� perceptions thereof.
Certain of the ETFs invest in TIPS. TIPS are subject to numerous risks including changes in interest rates, economic recession and deterioration of the bond market or investors' perception thereof.