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Skybridge Core Dividend Strategy, Series 2

The SkyBridge Core Dividend Strategy is a unit investment trust that seeks to find companies with the ability to declare, pay and potentially increase dividends. The stocks in the portfolio are selected by applying a rules-based investment style developed by SkyBridge Capital II, LLC. SkyBridge believes a portfolio of high-quality dividend stocks may play a key role in most portfolios.

Portfolio Construction

The portfolio consists of the 10 highest-yielding stocks in the Dow Jones Industrial Average plus 20 additional stocks screened by profitability, valuation and dividend yield. Stocks in the financials and utility sectors are excluded from the universe of securities from which the portfolio's additional 20 stocks are selected. SkyBridge seeks to uncover and invest in companies that they believe will produce predictable earnings and strong cash flows.


Portfolio Consultant

SkyBridge invests using a high-conviction approach, expressed by seeking investments in profitable value stocks with attractive dividend yield potential.

Brendan G. Voege, CFA, leads the team responsible for selecting the stocks included in the SkyBridge Core Dividend Strategy trust. Prior to joining SkyBridge, Mr. Voege was a senior vice president and portfolio manager at SunAmerica Asset Management Corporation, where he managed a suite of rulesbased portfolios. Before joining SunAmerica in November of 2005, Mr. Voege was a portfolio analytics specialist at FactSet Research Systems Inc., a provider of financial information and analytics. Between 1998 and 2000 he was a mergers and acquisitions analyst at John S. Herold Inc., an independent research firm specializing in the energy sector. Mr. Voege received a B.A. from Fordham University and an M.B.A from Iona College. He also holds the Chartered Financial Analyst designation.

The Importance of Dividends

  • Companies that pay dividends tend to be more mature and relatively more stable • than those that do not pay dividends.

  • In today's low interest rate environment, investors may have the potential to achieve yield through relatively high dividend-paying stocks. Dividend-paying stocks can be used to capture yield while retaining capital appreciation potential.

  • Dividends have historically been one of the few constants in the world of investing, contributing nearly half of the stock market's total returns. According to Ibbotson Associates, dividends have provided approximately 42% of the 10.04% average annual total return on the S&P 500 Index, from 1926 through 2016.

The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The index cannot be purchased directly by investors. Past performance is no guarantee of future results.

Portfolio Objective

This unit investment trust seeks total return through a combination of capital appreciation and dividend income; 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 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.

You should be aware that the portfolio is concentrated in stocks in the consumer products sector which involves additional risks, including limited diversification. The companies engaged in the consumer products industry are subject to global competition, changing government regulations and trade policies, currency fluctuations, and the financial and political risks inherent in producing products for foreign markets.

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 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.

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.

The unit investment trust invests primarily in dividend yielding equity securities for which there is no guarantee that a company will increase or continue to pay dividends over time.

Although this portfolio terminates in approximately 15 months, the strategy is longterm. 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 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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