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First Trust® ETF Allocation Portfolio, Series 22

Finding the right mix of investments is a key factor to successful investing. Because different investments often react differently to economic and market changes, diversifying among low-correlated investments primarily helps to reduce volatility and also has the potential to enhance your returns. The First Trust® ETF Allocation Portfolio is a unit investment trust which seeks to provide broad equity diversification by investing approximately 70% in exchange-traded funds (ETFs) advised by First Trust Advisors L.P., an affiliate of the trust's sponsor, that invest in common stocks across various market capitalizations, growth and value styles and sectors. The remaining 30% of the portfolio invests in First Trust® ETFs that invest in common stocks of companies from several different sectors of the market that we believe will outperform the overall market over the

Core and Satellite Approach

For decades, investors have implemented asset allocation strategies designed around a core and satellite approach. This is a strategy of investing in broad based equity asset classes which serve as the core component of the portfolio, and enhancing them with satellite positions that are concentrated in specific market segments. The goal of the core and satellite approach is to balance broad diversification while seeking risk-controlled, enhanced performance. We use this approach to construct the First Trust ETF® Allocation Portfolio.

What is an ETF?

ETFs offer investors the opportunity to buy and sell an entire basket of securities with a single transaction throughout the trading day. ETFs combine the characteristics of a mutual fund with the convenience and trading flexibility of stocks. Below is a list of other ETF features.

  • Diversification - ETFs hold a basket of securities which helps to mitigate single security risk. It is important to note that diversification does not guarantee a profit or protect against loss.


  • Transparency - ETF holdings are available daily so investors know what they own.


  • Tax Efficiency - The ETF structure allows for increased tax efficiency.


  • Fully Invested - Unlike a traditional mutual fund, ETFs do not need to hold cash in order to satisfy investor redemptions which allows them to better adhere to their investment objective.
Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Portfolio Objective

This unit investment trust seeks above-average capital appreciation by investing in a diversified portfolio of First Trust® equity ETFs; however, there is no assurance the objective will be met. The portfolio terminates approximately two years from the initial date of deposit.It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust's sales charge, operating expenses and organizational costs.

You should consider the portfolio's investment objective, 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 ETFs which invest in common stocks.

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 ETFs may employ the use of leverage, which increases the volatility of such funds.

Certain of the ETFs invest in securities issued by foreign issuers. Such securities are subject to certain risks, including currency and interest rate fluctuations, nationalization or other adverse political or economic developments, lack of liquidity of certain foreign markets, 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.

For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.

It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust’s sales charge, operating expenses and organizational costs.

This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

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.

 
Fund Cusip Information
30304Y618 (Cash)
30304Y626 (Reinvest)
30304Y634 (Cash-Fee)
30304Y642 (Reinvest-Fee)
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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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