The S&P Target 24 Portfolio, 2nd Quarter 2017 Series
S&P Target 24 2Q '17 - Term 7/9/18 (S&P Target 24 Portfolio) is a unit investment
trust which invests in a fixed portfolio of stocks for approximately 15 months.
The stocks are selected by applying a disciplined investment strategy which
adheres to pre-determined screens and factors. The portfolio seeks above-average
total return; however, there is no assurance the objective will be met.
The strategy is based on these steps:
- We begin with the companies listed in the S&P 500 Index.
- The economic sectors in the index are ranked by market capitalization
- the eight largest are selected.
- The stocks in each of the eight largest sectors are ranked
among their peers on three factors:
- Trailing four quarters return on assets.
- Buyback yield - the percentage decrease in a company's outstanding
common shares versus one year earlier.
- Bullish interest indicator - a comparison, over the past twelve
months, between the number of a company's shares that traded in months
when the stock price rose versus the number of shares that traded in months
when the stock price fell.
- The three stocks from each of the eight sectors with the highest
combined ranking on the above factors are selected for the portfolio. The
stocks are weighted according to their market capitalization relative to their
sector and relative to their peers within the sector.
If this strategy had been applied since 1986, investors would have realized
higher total returns than by investing in the entire S&P 500 Index. It is important
to note that the past performance of the strategy is hypothetical and it is
not indicative of the future performance of the S&P Target 24 Portfolio. Although
this unit investment trust terminates in approximately 15 months, the strategy
is long-term. Investors should consider their ability to pursue investing in
successive portfolios, if available. There may be tax consequences unless units
are purchased in an IRA or other qualified plan.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
| Standard Deviations*
|| Average Annual Total Returns*
|Annual Total Returns
Past performance is no guarantee of future results and the actual current
performance of the portfolio may be lower or higher than the hypothetical performance
of the strategy. Hypothetical returns for the strategy in certain years were
significantly higher than the returns of the S&P 500 Index. Hypothetical strategy
returns were the result of certain market factors and events which may not be
replicated in the future. You can obtain performance information which is current
through the most recent month-end by calling First Trust Portfolios L.P. at
1-800-621-1675 option 2. Investment return and principal value of the portfolio
will fluctuate causing units of the portfolio, when redeemed, to be worth more
or less than their original cost.
Simulated strategy returns are hypothetical, meaning that they do not represent actual trading, and, thus, may not reflect material economic and market factors, such as liquidity constraints, that may have had an impact on actual decision making. The hypothetical performance is the retroactive application of the strategy designed with the full benefit of hindsight. Strategy returns reflect a sales charge of 2.95% in the first year, 1.95% in subsequent years, estimated annual operating expenses of 0.174%, plus organization costs, but not taxes or commissions paid by the portfolio to purchase securities. Returns assume that all dividends received during a year are reinvested monthly. Actual portfolio performance will vary from that of investing in the strategy stocks because it may not be weighted the same as the strategy stocks and may not be fully invested at all times. It is important to note that the strategy may underperform the S&P 500 Index in certain years and may produce negative results.
The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap
U.S. stock market performance. The index cannot be purchased directly by investors.
Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.
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 common stocks, 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.
You should be aware that the portfolio is concentrated in stocks in the
consumer products sector which involves additional risks, including limited
diversification.The companies engaged in the consumer products industry are
subject to global competition, changing government regulations and trade
policies, currency fluctuations, and the financial and political risks inherent in
producing products for foreign markets.
An investment in a portfolio containing equity securities of foreign issuers is subject to
additional risks, including currency fluctuations, political risks, withholding, the lack of
adequate financial information, and exchange control restrictions impacting foreign issuers.
An investment in a portfolio containing small-cap and mid-cap companies
is subject to additional risks, as the share prices of small-cap companies
and certain mid-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.
"S&P", "S&P 500", and "Standard & Poor's" are trademarks of Standard & Poor's Financial
Services LLC ("S&P") and have been licensed for use by First Trust Portfolios L.P. The S&P
Target 24 Portfolio is not sponsored, endorsed, sold, or promoted by Standard & Poor's
and Standard & Poor's makes no representation regarding the advisability of investing in