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S&P Dividend Aristocrats Buy-Write, 1  Ticker: FLNKWX
 
Description
A unit investment trust that seeks income, with capital appreciation as a secondary objective. The trust invests in a fixed portfolio of U.S. Treasury securities and common stocks which are selected from the S&P 500 Dividend Aristocrats Index. The common stocks will be subject to a Long-Term Equity AnticiPation Securities (LEAPS®) call option against each position.
 
Summary
Product Code: ARBW1
Portfolio Status: Secondary
Initial Offer Date: 06/14/2018
Secondary Date: 09/19/2018
Portfolio Ending Date: 01/22/2020
Tax Structure: Regulated Investment Company
Distributions: Semi-Annual
 
Initial Offer Price: $10.0000
NAV(*): $10.3647
POP(*): $10.5066
Remaining Deferred Sales Charge: $0.0900
* As of Trade Date: 09/21/2018 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 * $0.2339
Subsequent Years * $0.2336
As of 09/17/2018
* 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 Analysis Click here to Perform a Benchmark Comparison  
 Sector Weighting
Consumer Discretionary  Consumer Discretionary 16.26%
Consumer Staples  Consumer Staples 21.04%
Energy  Energy 6.78%
Financials  Financials 4.91%
Health Care  Health Care 16.04%
Industrials  Industrials 17.38%
Information Technology  Information Technology 3.50%
Materials  Materials 11.32%
Real Estate  Real Estate 0.00%
Telecommunication Services  Telecommunication Services 3.80%
Utilities  Utilities 0.00%
Other  Other -5.64%
 
  Large Mid Small  
Growth  57.84% 0.00% 0.00%  
Value  39.36% 3.83% 0.00%  

 Style Weighting
Large-Cap Growth 57.84%
Large-Cap Value 39.36%
Mid-Cap Growth 0.00%
Mid-Cap Value 3.83%
Small-Cap Growth 0.00%
Small-Cap Value 0.00%
Undetermined -5.64%
 Composition
U.S. Stocks 101.03%   Bonds/Cash or Cash Equivalents 2.59%
Non-U.S. Stocks 0.00%   Other -5.64%
The style and sector characteristics of the portfolio are determined as of 09/21/2018 and will likely vary thereafter due to market fluctuations in the underlying securities.  

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolSectorStyleWeighting
 3M Company MMM Industrials  Industrials Large-Cap Growth 5.03%
 Johnson & Johnson JNJ Health Care  Health Care Large-Cap Growth 4.98%
 S&P Global Inc. SPGI Financials  Financials Large-Cap Growth 4.91%
 General Dynamics Corporation GD Industrials  Industrials Large-Cap Growth 4.76%
 Walmart, Inc. WMT Consumer Staples  Consumer Staples Large-Cap Value 4.46%
 V.F. Corporation VFC Consumer Discretionary  Consumer Discretionary Large-Cap Growth 4.29%
 Walgreens Boots Alliance, Inc. WBA Consumer Staples  Consumer Staples Large-Cap Value 4.24%
 Hormel Foods Corporation HRL Consumer Staples  Consumer Staples Large-Cap Value 4.18%
 W.W. Grainger, Inc. GWW Industrials  Industrials Large-Cap Growth 4.14%
 Archer-Daniels-Midland Company ADM Consumer Staples  Consumer Staples Large-Cap Value 4.09%
 Kimberly-Clark Corporation KMB Consumer Staples  Consumer Staples Large-Cap Growth 4.07%
 Lowe's Companies, Inc. LOW Consumer Discretionary  Consumer Discretionary Large-Cap Growth 4.07%
 Target Corporation TGT Consumer Discretionary  Consumer Discretionary Large-Cap Value 4.06%
 Abbott Laboratories ABT Health Care  Health Care Large-Cap Value 4.01%
 Exxon Mobil Corporation XOM Energy  Energy Large-Cap Value 3.96%
 Praxair, Inc. PX Materials  Materials Large-Cap Growth 3.87%
 McDonald's Corporation MCD Consumer Discretionary  Consumer Discretionary Large-Cap Growth 3.84%
 Cardinal Health, Inc. CAH Health Care  Health Care Mid-Cap Value 3.83%
 AT&T Inc. T Telecommunication Services  Telecommunication Services Large-Cap Value 3.80%
 Nucor Corporation NUE Materials  Materials Large-Cap Value 3.74%
 Ecolab Inc. ECL Materials  Materials Large-Cap Growth 3.71%
 Automatic Data Processing, Inc. ADP Information Technology  Information Technology Large-Cap Growth 3.50%
 Illinois Tool Works Inc. ITW Industrials  Industrials Large-Cap Growth 3.45%
 AbbVie Inc. ABBV Health Care  Health Care Large-Cap Growth 3.22%
 Chevron Corporation CVX Energy  Energy Large-Cap Value 2.82%
 2020-01-17 Chevron Corporation C 150   Other  Other Undetermined -0.05%
 2020-01-17 Exxon Mobil Corporation C 100   Other  Other Undetermined -0.08%
 2020-01-17 AT&T Inc. C 40   Other  Other Undetermined -0.08%
 2020-01-17 McDonald's Corporation C 200   Other  Other Undetermined -0.08%
 2020-01-17 Illinois Tool Works Inc. C 180   Other  Other Undetermined -0.09%
 2020-01-17 AbbVie Inc. C 120   Other  Other Undetermined -0.10%
 2020-01-17 Ecolab Inc. C 175   Other  Other Undetermined -0.15%
 2020-01-17 Nucor Corporation C 80   Other  Other Undetermined -0.16%
 2020-01-17 General Dynamics Corporation C 240   Other  Other Undetermined -0.16%
 2020-01-17 Automatic Data Processing, Inc. C 170   Other  Other Undetermined -0.16%
 2020-01-17 S&P Global Inc. C 250   Other  Other Undetermined -0.17%
 2020-01-17 3M Company C 250   Other  Other Undetermined -0.19%
 2020-01-17 Cardinal Health, Inc. C 65   Other  Other Undetermined -0.21%
 2020-01-17 Archer-Daniels-Midland Company C 55   Other  Other Undetermined -0.21%
 2020-01-17 Abbott Laboratories C 75   Other  Other Undetermined -0.24%
 2020-01-17 Walgreens Boots Alliance, Inc. C 77.50   Other  Other Undetermined -0.28%
 2020-01-17 Kimberly-Clark Corporation C 125   Other  Other Undetermined -0.29%
 2020-01-17 Praxair, Inc. C 190   Other  Other Undetermined -0.30%
 2020-01-17 Target Corporation C 95   Other  Other Undetermined -0.32%
 2020-01-17 V.F. Corporation C 100   Other  Other Undetermined -0.33%
 2020-01-17 Hormel Foods Corporation C 42.50   Other  Other Undetermined -0.33%
 2020-01-17 Walmart, Inc. C 100   Other  Other Undetermined -0.35%
 2020-01-17 Johnson & Johnson C 145   Other  Other Undetermined -0.36%
 2020-01-17 Lowe's Companies, Inc. C 120   Other  Other Undetermined -0.44%
 2020-01-17 W.W. Grainger, Inc. C 380   Other  Other Undetermined -0.51%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 1.25%, due 12/15/2018
0.87%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 1%, due 03/15/2019
0.86%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 0.875%, due 06/15/2019
0.86%
 
Total Number of Holdings:    53
Underlying Securities information represented above is as of 09/21/2018 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.04500 September 20, 2018
$0.04500 October 19, 2018
$0.04500 November 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.

Sector Concentration Risk. A portfolio which is concentrated in an individual sector is subject to additional risks, including limited diversification.

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.

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.

LEAPS Risk. The value of the LEAPS is deducted from the value of the portfolio assets when determining the value of a unit. As the value of the LEAPS increases, it has a more negative impact on the value of the units. The value of the LEAPS will also be affected by changes in the value and dividend rates of the underlying stocks, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the stocks and the remaining time to expiration. Additionally, the value of the LEAPS does not increase or decrease at the same rate as the underlying stock. However, as the LEAPS approach their expiration date, their value increasingly moves with the price of the stock.

Options Risk. Options are subject to various risks including that their value may be adversely affected if the market for the option becomes less liquid or smaller. In addition, options will be affected by changes in the value and dividend rates of the stock subject to the option, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the common stock and the remaining time to expiration.

US Treasury Note Risk. The value of U.S. Treasury notes will be adversely affected by decreases in bond prices and increases in interest rates.

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.

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.

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.

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
30309N229 (Cash)
30309N237 (Cash-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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