The value of mortgage-backed securities will decline with increases
in interest rates.The value of mortgage-backed securities will also fluctuate
with changes in the general condition of the mortgage-backed securities market,
changes in inflation rates or when political or economic events affecting Ginnie
Reinvestment during periods when interest rates are lower will have the effect of
decreasing monthly distributions of interest income from the trust. In addition, there
may be times when reinvestment is not feasible. Since the trust can only distribute
what it receives, interest distributions will decrease if principal payments and
prepayments cannot be reinvested.
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. In addition, the market for
mortgage-backed securities has become increasingly volatile due to the downturn in the
housing and mortgage lending markets.
Estimated current return is determined by dividing a Trust's estimated net annual interest income per unit by the public offering price per unit. Estimated long-term return is a measure of the estimated return over the estimated life of a Trust. Unlike estimated current return, estimated long-term return reflects maturities, estimated principal prepayments, Trust charges and expenses, and discounts and premiums of securities in a Trust. Returns and prices will fluctuate. Consult a prospectus for a more complete description of the estimated current return and estimated long-term return calculations.
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.