Equity Risk. An investment in a portfolio containing common stocks is 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.
Sector Concentration Risk. A portfolio which is concentrated in an individual sector is subject to additional risks, including limited diversification.
Consumer Products Risk. The companies engaged in the consumer products sector 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.
Health Care Risk. The companies engaged in the health care sector are subject to fierce competition, high research and development costs, governmental regulations, loss of patent protection, and changing consumer spending trends. In addition, passage of the Health Care and Education Affordability Reconciliation Act of 2010 has had and will continue to have a significant impact on the health care sector.
IRA Risk. There may be tax consequences unless units are purchased in an IRA or other qualified plan.
Small-Cap and Mid-Cap Risk. 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.
Volatility Risk. 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.
All data used for the sector and style classification comparisons is from
Bloomberg Finance L.P, which we believe to be reliable, but do not take responsibility
for its accuracy.
The style and capitalization characteristics used to describe the stocks are designed to help you
understand how they fit into your overall investment plan. Due to changes in the value of the stocks
the characteristics may vary over time. In general, growth stocks have high relative price-to-book
ratios while value stocks have low relative price-to-book ratios. In determining market capitalization
characteristics, we analyze the market capitalizations of the 3,000 largest stocks in the U.S. (excluding
foreign securities, ADRs, limited partnerships and regulated investment companies) on a monthly basis.
Companies with market capitalizations among the largest 10% are considered Large-Cap securities, the next
20% are considered Mid-Cap securities and the remaining securities are considered Small-Cap securities.
Although the portfolio terminates in approximately one year, 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.
You should carefully consider the trust's investment objectives, risks, and charges and expenses 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 trust. Read it carefully before you invest.
This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.
Not FDIC Insured, Not Bank Guaranteed and May Lose Value.