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Capital Strength Buy-Write, 40  Ticker: FOAHSX
 
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 of well-capitalized companies with strong market positions. The common stocks will be subject to a Long-Term Equity AnticiPation Securities (LEAPS®) call option against each position.
 
Summary
Product Code: CSBW40
Portfolio Status: Secondary
Initial Offer Date: 07/18/2018
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(*): $9.9495
POP(*): $10.0857
Remaining Deferred Sales Charge: $0.1350
* 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 * $0.1290
Subsequent Years * $0.1287
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 17.31%
Consumer Staples  Consumer Staples 8.41%
Energy  Energy 3.70%
Financials  Financials 0.00%
Health Care  Health Care 18.60%
Industrials  Industrials 22.92%
Information Technology  Information Technology 26.08%
Materials  Materials 3.50%
Real Estate  Real Estate 0.00%
Telecommunication Services  Telecommunication Services 0.00%
Utilities  Utilities 0.00%
Other  Other -6.33%
 
  Large Mid Small  
Growth  72.67% 0.00% 0.00%  
Value  27.85% 0.00% 0.00%  

 Style Weighting
Large-Cap Growth 72.67%
Large-Cap Value 27.85%
Mid-Cap Growth 0.00%
Mid-Cap Value 0.00%
Small-Cap Growth 0.00%
Small-Cap Value 0.00%
Undetermined -6.33%
 Composition
U.S. Stocks 92.62%   Bonds/Cash or Cash Equivalents 5.03%
Non-U.S. Stocks 7.90%   Other -6.33%
The style and sector characteristics of the portfolio are determined as of 09/20/2018 and will likely vary thereafter due to market fluctuations in the underlying securities.  

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolSectorStyleWeighting
 Union Pacific Corporation UNP Industrials  Industrials Large-Cap Growth 5.50%
 Caterpillar Inc. CAT Industrials  Industrials Large-Cap Growth 5.23%
 Costco Wholesale Corporation COST Consumer Staples  Consumer Staples Large-Cap Growth 5.23%
 Mastercard Incorporated MA Information Technology  Information Technology Large-Cap Growth 4.94%
 Apple Inc. AAPL Information Technology  Information Technology Large-Cap Growth 4.91%
 The Home Depot, Inc. HD Consumer Discretionary  Consumer Discretionary Large-Cap Growth 4.71%
 NIKE, Inc. (Class B) NKE Consumer Discretionary  Consumer Discretionary Large-Cap Growth 4.59%
 Cigna Corporation CI Health Care  Health Care Large-Cap Value 4.50%
 Delta Air Lines, Inc. DAL Industrials  Industrials Large-Cap Value 4.42%
 Ingersoll-Rand Plc IR Industrials  Industrials Large-Cap Value 4.40%
 Best Buy Co., Inc. BBY Consumer Discretionary  Consumer Discretionary Large-Cap Growth 4.27%
 AbbVie Inc. ABBV Health Care  Health Care Large-Cap Growth 3.94%
 Biogen Inc. BIIB Health Care  Health Care Large-Cap Growth 3.81%
 The Walt Disney Company DIS Consumer Discretionary  Consumer Discretionary Large-Cap Value 3.74%
 Facebook, Inc. (Class A) FB Information Technology  Information Technology Large-Cap Growth 3.71%
 Valero Energy Corporation VLO Energy  Energy Large-Cap Value 3.70%
 Intel Corporation INTC Information Technology  Information Technology Large-Cap Value 3.59%
 LyondellBasell Industries N.V. LYB Materials  Materials Large-Cap Value 3.50%
 Applied Materials, Inc. AMAT Information Technology  Information Technology Large-Cap Growth 3.43%
 Edwards Lifesciences Corporation EW Health Care  Health Care Large-Cap Growth 3.38%
 Northrop Grumman Corporation NOC Industrials  Industrials Large-Cap Growth 3.37%
 The Estee Lauder Companies Inc. EL Consumer Staples  Consumer Staples Large-Cap Growth 3.18%
 UnitedHealth Group Incorporated UNH Health Care  Health Care Large-Cap Growth 2.97%
 Adobe Systems Incorporated ADBE Information Technology  Information Technology Large-Cap Growth 2.97%
 Electronic Arts Inc. EA Information Technology  Information Technology Large-Cap Growth 2.53%
 2020-01-17 Electronic Arts Inc. C 180   Other  Other Undetermined -0.04%
 2020-01-17 Northrop Grumman Corporation C 390   Other  Other Undetermined -0.07%
 2020-01-17 Intel Corporation C 62.50   Other  Other Undetermined -0.10%
 2020-01-17 Facebook, Inc. (Class A) C 250   Other  Other Undetermined -0.10%
 2020-01-17 LyondellBasell Industries N.V. C 130   Other  Other Undetermined -0.11%
 2020-01-17 The Walt Disney Company C 135   Other  Other Undetermined -0.12%
 2020-01-17 Applied Materials, Inc. C 57.50   Other  Other Undetermined -0.13%
 2020-01-17 The Estee Lauder Companies Inc. C 170   Other  Other Undetermined -0.15%
 2020-01-17 AbbVie Inc. C 115   Other  Other Undetermined -0.15%
 2020-01-17 Valero Energy Corporation C 130   Other  Other Undetermined -0.18%
 2020-01-17 UnitedHealth Group Incorporated C 300   Other  Other Undetermined -0.19%
 2020-01-17 Biogen Inc. C 430   Other  Other Undetermined -0.21%
 2020-01-17 The Home Depot, Inc. C 240   Other  Other Undetermined -0.22%
 2020-01-17 Edwards Lifesciences Corporation C 180   Other  Other Undetermined -0.24%
 2020-01-17 Adobe Systems Incorporated C 310   Other  Other Undetermined -0.24%
 2020-01-17 Best Buy Co., Inc. C 95   Other  Other Undetermined -0.31%
 2020-01-17 Costco Wholesale Corporation C 260   Other  Other Undetermined -0.31%
 2020-01-17 Ingersoll-Rand Plc C 110   Other  Other Undetermined -0.35%
 2020-01-17 Mastercard Incorporated C 250   Other  Other Undetermined -0.36%
 2020-01-17 NIKE, Inc. (Class B) C 95   Other  Other Undetermined -0.39%
 2020-01-17 Delta Air Lines, Inc. C 62.50   Other  Other Undetermined -0.40%
 2020-01-17 Caterpillar Inc. C 170   Other  Other Undetermined -0.42%
 2020-01-17 Union Pacific Corporation C 170   Other  Other Undetermined -0.50%
 2020-01-17 Cigna Corporation C 210   Other  Other Undetermined -0.51%
 2020-01-17 Apple Inc. C 230   Other  Other Undetermined -0.53%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 1.25%, due 10/31/2018
1.26%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 1.25%, due 01/31/2019
1.26%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 1.625%, due 04/30/2019
1.26%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 0.875%, due 07/31/2019
1.25%
 
Total Number of Holdings:    54
Underlying Securities information represented above is as of 09/20/2018 but will vary with future fluctuations in the market.

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

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.

Technology Risk. The companies engaged in the information technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their operating performance.

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
30309R147 (Cash)
30309R154 (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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