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MLP Closed-End Fund and Energy Portfolio, Series 57

The energy infrastructure of the United States provides the backbone of our economy and way of life. Energy infrastructure includes an elaborate network of systems that transport, store, gather, process and deliver crude oil, refined petroleum products, natural gas or electric power generation, including renewable energy. The performance of companies in the energy infrastructure industry is not highly correlated with the price of oil and other types of energy, but rather with the demand for energy. The demand for energy generally increases steadily over time and is much less volatile than commodity energy prices, which often results in steady, predictable cash flows for companies in these industries.1

1 Standard & Poor's

Portfolio Objectives

This unit investment trust seeks a high rate of current monthly income and growth of principal; however, there is no assurance the objectives will be met.

Portfolio Overview

The MLP Closed-End Fund and Energy Portfolio is a professionally selected unit investment trust which invests approximately 50% in closed-end funds that invest in master limited partnerships (MLPs) from the energy infrastructure industry. Approximately 50% of the portfolio invests in common stocks of energy companies.

MLPs are limited partnerships that are publicly traded on a U.S. securities exchange. They combine the tradability of common stocks with the corporate structure of a limited partnership. MLPs are traditionally high cash flow businesses that pay out a majority of that cash to investors. Investing in MLPs through closed-end funds provides an efficient alternative to investing directly in MLPs. Unlike individual partnership investments, a closed-end fund provides one Form 1099 per shareholder at the end of the year, rather than multiple K-1s and potential state filings.

The common stocks held in the portfolio generate cash flow through the gathering, processing, transportation, storage, and distribution of oil and natural gas.

With continuing geo-political and long-term supply concerns, we believe this investment may represent an attractive alternative for investors seeking oil and gas exposure and high current income potential. Advantages include:

  • High current income potential
  • Capital appreciation potential
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 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 an investment in a portfolio of common stocks and closed-end funds.

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.

Closed-end funds 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 the funds 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, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds may employ the use of leverage which increases the volatility of such funds.

You should be aware that an investment that is concentrated in stocks in the energy sector involves additional risks, including limited diversification. The companies engaged in the energy sector, which includes MLPs, are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. U.S. taxing authorities could challenge the trust's treatment of the MLPs for federal tax purposes. These tax risks could have a negative impact on the after-tax income available for distribution by the MLPs and/or the value of the trust's investments.

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.

An investment in foreign equities should be made with an understanding of the additional risks involved with foreign issuers, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

Because the portfolio invests in securities issued by companies headquartered in Canada, the portfolio may present more risks than a portfolio which is broadly diversified over several regions.

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.

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

 
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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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