Diversified Income & Growth Portfolio, Fall 2010 Series

Regardless of the market environment, we believe dividends should be considered an important ingredient in an investor's overall investment strategy. One way to seek to accomplish this goal is to buy a portfolio of companies with the potential to pass on a portion of their earnings to investors in the form of regular dividend increases. According to Ibbotson Associates, dividends have provided approximately 44% of the 9.81% average annual total return on the S&P 500 Index from January 1926 through December 2009.

A company's ability to consistently pay - and increase - dividends is an important sign of that company's financial strength.Therefore,we believe investors who are seeking dividends through their investments should look for wellmanaged and financially sound companies with the potential to deliver solid returns. Companies that choose to reward stockholders with greater dividends (and many companies don't) can give investors the potential to increase capital and produce attractive total returns over time. Of course, past performance is no guarantee of future results.

In the opinion of Wells Fargo Advisors, this strategy of investing may allow for the accumulation of wealth over several years, while also being conscious of capital preservation.

In 1993, an exclusive strategy was developed called the Diversified Stock Income Plan to help investors whose goal is to add stocks of dividend-paying companies to their portfolios.

Diversified Stock Income Plan

The Diversified Stock Income Plan (DSIP) was created to capitalize on a rising dividend strategy. The DSIP List is compiled based on the analysis conducted by Wells Fargo Advisors Advisory Services Group. DSIP is a diversified, regularly reviewed list of stocks with attractive current yields, chosen based on Wells Fargo Advisors' view of the likelihood of the companies to consistently raise their annual dividends.When reviewing a company, these analysts look for the following to determine the likelihood of annually increasing dividends:

• Solid financial condition
• Secure dividend with an attractive current yield
• Positive prospects for dividend growth over time

Since the inception of the DSIP List in 1993, 95.5% of the companies on the list have raised their annual dividends (as of December 31, 2009).

There can be no guarantee, however, that the companies on the DSIP List, including those selected for this portfolio, will declare dividends in the future or that if declared, they will remain at current levels or increase over time.

Diversified Income & Growth Portfolio

The stocks included in the Diversified Income & Growth Portfolio are chosen from the DSIP List by Wells Fargo Advisors.

The analysts at Wells Fargo Advisors begin with the roughly 70 stocks on the DSIP List. The list is then evaluated to construct a portfolio of approximately 25 names which offer the best opportunity, in the analyst'' opinion, to generate attractive total return over the approximate 5-year life of the portfolio..

The stocks are combined into a convenient package called a unit investment trust, with a fixed portfolio and a fixed maturity, allowing investors to participate in this unique strategy with one simple investment.

Portfolio Objectives

The Diversified Income & Growth Portfolio seeks to:

• Provide an Attractive Stream of Income.
  A portfolio of stocks believed to have the potential to regularly raise dividends offers investors the potential for a growing income stream. Because companies are selected for this portfolio based on their potential to not only pay dividends, but also their ability to increase them, this strategy can provide a natural inflation hedge. Rising dividends have also demonstrated an ability to cushion the fall of stock prices, especially in a rising interest rate environment.
  
  
• Reduce Volatility and Modify Risk.
  The Diversified Income & Growth Portfolio helps counteract volatility through diversification. The portfolio includes companies across all market capitalizations and from various sectors of the economy. Any stock inevitably is subject to general price fluctuation, but diversification can help smooth out overall portfolio returns.In addition,dividend payments may enhance the investment�s total return.

You should carefully consider the portfolio's investment objectives, risks, charges and expenses before investing. Contact your Financial Consultant or call First Trust Portfolios at 1.800.621.1675 to request a prospectus, which contains this and other information about this portfolio. Read it carefully before you invest. There is no assurance the objectives of this portfolio will be achieved.

Risk Considerations:

An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning common stocks.

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.

The portfolio contains a Real Estate Investment Trust (REIT) which involves additional risks, including changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

The portfolio contains two 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.

While Wells Fargo Advisors has carefully evaluated and approved the securities in this portfolio, it may choose for any reason not to recommend any or all of the securities for another purpose or at a later date. This may affect the value of your units.

Wells Fargo Advisors is the trade name used by three separate registered broker-dealers:Wells Fargo Advisors, LLC,Wells Fargo Advisors Financial Network, LLC and Wells Fargo Investments, LLC,Members SIPC, non-bank affiliates of Wells Fargo & Company.

First Trust Portfolios L.P. is the sponsor of this portfolio. Units are available through Wells Fargo Advisors and other broker/dealer firms.