Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 


 

The S&P Target 24 Portfolio, 2nd Quarter 2017 Series

The Strategy
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

Mountain Chart

Standard Deviations* Average Annual Total Returns*
S&P 500
Index
Strategy S&P 500
Index
Strategy
Since 1986 15.07% 15.93% 10.40% 10.58%
25 years 14.20% 14.72% 9.13% 9.55%
20 years 15.27% 15.70% 7.67% 8.18%
15 years 14.34% 13.72% 6.69% 4.86%
10 years 15.26% 14.44% 6.94% 5.56%
5 years 10.36% 10.27% 14.64% 10.78%
3 years 10.73% 9.76% 8.85% 2.81%
*Through 12/30/16


Annual Total Returns
Year S&P 500
Index
Strategy
1986 18.67% 18.14%
1987 5.25% 1.76%
1988 16.56% 4.29%
1989 31.62% 22.31%
1990 -3.19% 6.42%
1991 30.33% 40.31%
1992 7.61% -1.80%
1993 10.04% 8.03%
1994 1.30% 4.78%
1995 37.50% 38.92%
1996 22.89% 31.22%
1997 33.31% 30.02%
1998 28.55% 39.78%
1999 21.03% 41.09%
2000 -9.10% 3.85%
2001 -11.88% -11.06%
2002 -22.09% -19.23%
2003 28.65% 23.09%
2004 10.87% 13.54%
2005 4.90% 3.61%
2006 15.76% 1.41%
2007 5.56% 3.15%
2008 -36.99% -29.42%
2009 26.46% 12.03%
2010 15.08% 18.08%
2011 2.08% 6.88%
2012 15.98% 7.94%
2013 32.36% 42.22%
2014 13.66% 6.99%
2015 1.38% 2.01%
2016 11.93% 0.58%
02/28/17 5.94% 0.81%

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.

Risk Considerations:
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 such products.

 
The information in the prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted
Printer Friendly Page Printer Friendly Page
 
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2017 All rights reserved.