REIT Growth & Income Select, Series 23

A Real Estate Investment Trust (REIT) is a company that buys, develops, and/or manages income-producing real estate such as apartments, shopping centers, offices, and warehouses. In short, a REIT is a corporation that pools the capital of many investors to purchase one or more forms of real estate.

Portfolio Objectives

This unit investment trust seeks dividend income and capital appreciation; however, there is no assurance the objectives will be met. The portfolio terminates approximately two years from the initial date of deposit.

Investing In REITs

Income- REITs are currently required to distribute a majority of their income annually as dividends to shareholders.Historically, this has made REITs a significantly higher source of income versus other equities and competitive with traditional fixed income investments (see chart). It should be noted that dividends paid by REITs are generally not eligible for the reduced tax rates for qualified dividend income.

Diversification - The trust invests in a number of REITs offering diversification among properties and regions.This type of diversification may help to reduce some of the fluctuations in the real estate market as a result of economic downturns or changes in supply and demand in a specific region or type of property.

Asset Allocation - A study by Ibbotson Associates found that adding REITs to a portfolio of stocks, bonds, and cash is a key factor for portfolio diversification.¹ We believe this makes a compelling case for the use of REITs to reduce risks in a variety of investment portfolios.

Liquidity- Compared to traditional, privately-held real estate, which may be difficult to sell, REITs are traded on major stock exchanges, making them highly liquid. Additionally, units of the trust may be redeemed on any business day at the redemption price.

Skilled Management- REIT investors also gain the advantage of skilled management since REIT management teams tend to be experts within their specific type of property or geographic location.

¹ NAREIT,"The Investor's Guide to REITs," 2012

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 owning both REITs and common stocks, including, among other factors, the possible deterioration of either the financial condition of the issuers of the securities or the general condition of the stock market, changes in the real estate market, vacancy rates and competition, volatile interest rates or economic recession.

You should be aware that the portfolio is concentrated in REITs in the financials sector which involves additional risks, including limited diversification. There is no guarantee that the REITs in the portfolio will declare dividends in the future or that, if declared, they will either remain at current levels or increase over time. The financials sector is subject to the adverse effects of volatile interest rates, economic recession, increased competition from new entrants in the field, and the potential for increased regulation.

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.

An investment in a portfolio containing small-cap companies is subject to additional risks, as the share prices of small-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.