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Interest Rate Hedge, 117  Ticker: FMQZHX
 
Description
A unit investment trust that seeks above average total return by investing in assets we believe are attractive should interest rates rise. The portfolio is diversified across stocks of companies that have a history of dividend growth as well as closed-end funds which invest in convertible securities, TIPS, master limited partnerships, limited duration bonds and REITs. There can be no assurance that the trust will achieve a positive return if interest rates rise.
 
Summary
Product Code: IRHG117
Portfolio Status: Secondary
Initial Offer Date: 03/12/2018
Secondary Date: 04/30/2018
Portfolio Ending Date: 03/12/2020
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $9.5079
POP(*): $9.7267
Remaining Deferred Sales Charge: $0.1500
* As of Trade Date: 06/18/2018 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Estimated Net Annual Distribution Per Unit
Estimated Net Annual Distribution * $0.5407
Subsequent Years * $0.5397
As of 06/18/2018
* The estimated net annual distribution for subsequent years is expected to be less than the amount for the first year because a portion of the securities included in the portfolio will be sold to pay for organization costs, the deferred sales charge and the creation and development fee.  The estimates are based on annualizing the most recent dividends declared by the issuers of the securities included in the portfolio. There is no guarantee that the issuers of the securities included in the portfolio will declare distributions in the future or that, if declared, they will either remain at current levels or increase over time.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. MIE 4.15%
 Neuberger Berman MLP Income Fund Inc. NML 4.14%
 ClearBridge Energy MLP Total Return Fund Inc. CTR 4.02%
 Nuveen Energy MLP Total Return Fund JMF 3.90%
 Fiduciary/Claymore MLP Opportunity Fund FMO 3.88%
 Calamos Dynamic Convertible and Income Fund CCD 3.64%
 Calamos Convertible Opportunities and Income Fund CHI 3.50%
 Cohen & Steers Total Return Realty Fund, Inc. RFI 3.44%
 CBRE Clarion Global Real Estate Income Fund IGR 3.43%
 AllianzGI Equity & Convertible Income Fund NIE 3.41%
 Aberdeen Global Premier Properties Fund AWP 3.37%
 Putnam Premier Income Trust PPT 3.02%
 Credit Suisse Asset Management Income Fund, Inc. CIK 2.92%
 Templeton Global Income Fund GIM 2.90%
 MFS Intermediate Income Trust MIN 2.89%
 Putnam Master Intermediate Income Trust PIM 2.88%
 Valero Energy Corporation VLO 2.46%
 Western Asset Inflation-Linked Income Fund WIA 2.45%
 Western Asset Inflation-Linked Opportunities & Income Fund WIW 2.41%
 Union Pacific Corporation UNP 2.18%
 The Home Depot, Inc. HD 2.18%
 Marathon Petroleum Corporation MPC 2.14%
 NextEra Energy, Inc. NEE 2.11%
 Best Buy Co., Inc. BBY 2.11%
 Snap-on Incorporated SNA 2.09%
 Ingersoll-Rand Plc IR 2.05%
 Pfizer Inc. PFE 1.98%
 CVS Health Corporation CVS 1.97%
 Packaging Corporation of America PKG 1.97%
 Eaton Corporation Plc ETN 1.90%
 United Technologies Corporation UTX 1.89%
 Ameriprise Financial, Inc. AMP 1.87%
 Royal Caribbean Cruises Ltd. RCL 1.83%
 BlackRock, Inc. BLK 1.81%
 Principal Financial Group, Inc. PFG 1.79%
 Prudential Financial, Inc. PRU 1.79%
 Altria Group, Inc. MO 1.75%
 Cardinal Health, Inc. CAH 1.48%
 
Total Number of Holdings:    38
Underlying Securities information represented above is as of 06/18/2018 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.07500 June 20, 2018
$0.07500 July 20, 2018
$0.07500 August 20, 2018

Risk Considerations

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.

Buy & Hold Risk – Taxable Trusts. 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.

Closed-End Fund Risk. 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.

Convertible Securities Risk. Convertible securities are bonds, preferred stocks and other securities that pay a fixed rate of interest (or dividends) and will repay principal at a fixed date in the future. However, these securities may be converted into a specific number of common stocks at a specified time. As such, an investment in convertible securities entails some of the risks associated with both common stocks and bonds.

Emerging Markets Risk. Risks associated with investing in foreign securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less liquid, less regulated and more volatile than the U.S. and developed foreign markets.

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

High-Yield or Junk Bonds Risk. Investing in high-yield securities or "junk" bonds should be viewed as speculative and you should review your ability to assume the risks associated with investments which utilize such securities. High-yield securities are subject to numerous risks, including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.

Investment Grade Bonds Risk. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

Limited Duration Bonds Risk. Limited duration bonds are subject to interest rate risk, which is the risk that the value of a security will fall if interest rates increase. While limited duration bonds are generally subject to less interest rate sensitivity than longer duration bonds, there can be no assurance that interest rates will rise during the life of the trust.

MLP Risk. Investments in Master Limited Partnerships (MLPs) are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. There are certain tax risks associated with MLPs, including the risk that U.S. taxing authorities could challenge the trust's treatment of the MLPs for federal income 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.

REITs Risk. An investment in a portfolio containing REIT securities is subject to additional risks including limited diversification. Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

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.

TIPS Risk. TIPS are subject to numerous risks including changes in interest rates, economic recession and deterioration of the bond market or investors' perception thereof.

US Treasury Debt Instruments Risk. Debt instruments, such as U.S. Treasury obligations, are subject to numerous risks including higher interest rates, economic recession and deterioration of the bond market or investors' perceptions thereof.

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.

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

Important Note. 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.

Operational Risk. As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cyber security.

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.

Fund Cusip Information
30307G184 (Cash)
30307G192 (Reinvest)
30307G200 (Cash-Fee)
30307G218 (Reinvest-Fee)
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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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