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Low Volatility Portfolio, Series 9

The ebb and flow of markets can have a significant impact on a portfolio. For investors focused on long-term investment objectives, one way to potentially mitigate the adverse effects of market movements is to invest in relatively low-volatility stocks. Typically, these stocks do not have as dramatic price fluctuations (relative to other stocks), but change in value steadily over time.

The goal of the Low Volatility Portfolio is to provide investors with exposure to 50 well-capitalized companies which have displayed low price fluctuations over time while also retaining capital growth potential.

Portfolio Selection Process

Through our multi-factor selection process we seek to find the stocks that we believe have the best prospects for above-average capital appreciation.

Step 1: Fundamental Model Ranking

All stocks contained in the S&P 500 Index are ranked by the following equally weighted factors to determine an overall fundamental model rank:

  • Price-to-book.
  • Price-to-cash flow.
  • Return on assets.

Step 2: Volatility Model Ranking

All stocks contained in the S&P 500 Index are ranked by long- and short-term volatility based on standard deviation of historical returns in order to determine each stock's volatility model rank.

Step 3: Select Lowest Volatility Stocks

The top 100 stocks in the S&P 500 Index according to their volatility model rank are determined.

Step 4: Select Highest Fundamentally Ranked Stocks

The remaining stocks are ranked based on their fundamental model score and the top 50 stocks are selected for the portfolio subject to a maximum of 25% in any one sector. Stocks are equally weighted within the portfolio.

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. at the number listed below 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.

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.

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 trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.

 
Fund Cusip Information
30305A403 (Cash)
30305A411 (Reinvest)
30305A429 (Cash-Fee)
30305A437 (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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