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ESG Impact Opportunity, Series 1

Environmental, social and governance (ESG) investing is a process for evaluating how companies’ ESG practices may affect their stock return potential. This unit investment trust has been developed to provide values-based investors control over where their investment dollars are allocated.

Investing With A Purpose

ESG is a set of criteria that investors can use to measure how well a company is managing its risks and opportunities related to environmental, social, and governance issues.

Environmental
Environmental criteria examine how a company performs as a steward of the natural environment. Such criteria measure how well a company manages its impacts, as well as its actual performance in curbing its own emissions, managing its water use and waste, and other environmental metrics.

Social
Social criteria examine how a company manages its relationships with its employees, suppliers, customers, and society in general. Social criteria include labor relations and human capital development, supply chain management, human rights and community relations management.

Goverance
Stakeholder governance criteria determine the quality of the company’s overall management of ESG and its relationship with shareholders. They assess the quality of policies and management systems to ensure that the company operates in an ethical manner, and that it maintains a healthy leadership structure.

Who Is Sustainalytics

Sustainalytics is an independent ESG and corporate governance research and analysis firm supporting investors around the world with the development and implementation of responsible investment strategies. Established in 1992, Sustainalytics has been a trusted partner of responsible investors for almost 25 years.

Sustainalytics collaborates with institutions within the capital markets, helping them turn vast quantities of environmental, social and governance information into insightful, value-added analysis to enable more informed investment decisions. Sustainalytics serves approximately 450 clients, across 24 countries, providing them with comprehensive ESG and corporate governance research, ratings and analysis on more than 10,000 companies worldwide. Their vision, mission and their core values are listed below.

Vision
Sustainalytics believes it is imperative for the global economy to become more just and sustainable.

Mission
Sustainalytics’ mission is to provide the insights required for investors and companies to make more informed decisions that lead to a more just and sustainable global economy.



Portfolio Selection Process

The ESG Impact Opportunity Portfolio is a unit investment trust which invests in companies using a comprehensive evaluation process based on Sustainalytics’ ESG metrics. Each company included in the portfolio is assigned an ESG rating. The Sustainalytics ESG rating provides an assessment of issuers relative to peers within Sustainalytics’ 42 global industry peer groups. These ratings measure how well issuers proactively manage the environmental, social and governance issues that are the most material to their business. Based on a structured, objective and transparent methodology, ESG ratings provide an assessment on companies’ ability to mitigate risks and capitalize on opportunities. Sustainalytics’ analyst knowledge is a critical component of the ratings as the analyst applies expertise based on extensive company and sector knowledge to assess indicators, and provides an opinion of the issuer’s performance on its key ESG issues. First Trust then evaluates each company using fundamental investment factors to select companies for the portfolio which have strong characteristics, trade at attractive valuations, and in its opinion, are likely to exceed market expectations of future cash flows.

Portfolio Objective

This unit investment trust seeks above-average capital appreciation; however, there is no assurance the objective will be met.



Not FDIC Insured • Not Bank Guaranteed • May Lose Value

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. 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.

Common stocks are subject to certain 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.

An investment in a portfolio containing 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.

You should be aware that the portfolio is concentrated in stocks in the information technology sector which involves additional risks, including limited diversification. The companies engaged in the information technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their operating performance.

One of the securities in the portfolio is issued by a Real Estate Investment Trust (REIT). 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.

Although this portfolio 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

The value of the securities held by the trusts may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.

 
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.
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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