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Tactical Income Opportunity, 7  Ticker: FREADX
 
Description
A unit investment trust that seeks current income with total return as a secondary objective by investing in dividend paying stocks and REITs as well as closed-end funds which invest in convertible securities and senior loan floating rate securities.
 
Summary
Product Code: TACO7
Portfolio Status: Secondary
Initial Offer Date: 10/19/2018
Secondary Date: 12/28/2018
Portfolio Ending Date: 01/21/2020
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Historical 12-Month Distribution Rate of Trust Holdings:^ 6.34%
Initial Offer Price: $10.0000
NAV(*): $9.7463
POP(*): $9.8797
Remaining Deferred Sales Charge: $0.0450
* As of Trade Date: 02/22/2019 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.
^There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical distribution rate of the securities included in the trust is for illustrative purposes only and is not indicative of the trust's distribution rate. The historical distribution rate is calculated by dividing the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio by the trust's offering price and is reduced to account for the effects of fees and expenses which will be incurred when investing in a trust. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 Calamos Convertible Opportunities and Income Fund CHI 4.98%
 Advent Claymore Convertible Securities and Income Fund AVK 4.95%
 AllianzGI Equity & Convertible Income Fund NIE 4.95%
 Calamos Dynamic Convertible and Income Fund CCD 4.87%
 AllianzGI Diversified Income & Convertible Fund ACV 4.83%
 Pioneer Floating Rate Trust PHD 3.07%
 Nuveen Floating Rate Income Fund JFR 3.05%
 Invesco Dynamic Credit Opportunities Fund VTA 3.05%
 Nuveen Floating Rate Income Opportunity Fund JRO 3.02%
 Blackstone/GSO Long-Short Credit Income Fund BGX 2.99%
 Eaton Vance Senior Floating-Rate Trust EFR 2.98%
 Apollo Senior Floating Rate Fund Inc. AFT 2.97%
 THL Credit Senior Loan Fund TSLF 2.88%
 Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP (ADR) SBS 1.45%
 Companhia Paranaense de Energia-Copel (Preference, ADR) ELP 1.40%
 Companhia Energetica de Minas Gerais-CEMIG (ADR) CIG 1.35%
 Federated Investors, Inc. (Class B) FII 1.28%
 Telefonica Brasil S.A. (ADR) VIV 1.25%
 Rio Tinto Plc (ADR) RIO 1.20%
 OGE Energy Corp. OGE 1.15%
 CenterPoint Energy, Inc. CNP 1.14%
 International Paper Company IP 1.13%
 Santander Consumer USA Holdings Inc. SC 1.09%
 China Mobile Limited (ADR) CHL 1.07%
 Sinopec Shanghai Petrochemical Company Limited (ADR) SHI 1.07%
 CVR Energy, Inc. CVI 1.07%
 China Petroleum & Chemical Corporation (Sinopec) (ADR) SNP 1.06%
 Seaspan Corporation SSW 1.06%
 Verizon Communications Inc. VZ 1.04%
 Covanta Holding Corporation CVA 1.04%
 National Grid Plc (ADR) NGG 1.03%
 The Williams Companies, Inc. WMB 1.02%
 Aircastle Limited AYR 1.01%
 Eni SpA (ADR) E 0.99%
 Royal Dutch Shell Plc (ADR) RDS/A 0.98%
 CNOOC Limited (ADR) CEO 0.98%
 AU Optronics Corp. (ADR) AUO 0.97%
 Exxon Mobil Corporation XOM 0.96%
 BT Group Plc (ADR) BT 0.96%
 AT&T Inc. T 0.95%
 The Buckle, Inc. BKE 0.95%
 H&R Block, Inc. HRB 0.95%
 LyondellBasell Industries N.V. LYB 0.94%
 Mobile TeleSystems PJSC (ADR) MBT 0.91%
 Waddell & Reed Financial, Inc. WDR 0.89%
 British American Tobacco Plc (ADR) BTI 0.87%
 The Kraft Heinz Company KHC 0.86%
 Helmerich & Payne, Inc. HP 0.84%
 Altria Group, Inc. MO 0.82%
 Vale S.A. (ADR) VALE 0.80%
 Macy's, Inc. M 0.75%
 Chico's FAS, Inc. CHS 0.73%
 CenturyLink, Inc. CTL 0.64%
 Medical Properties Trust, Inc. MPW 0.63%
 Ryman Hospitality Properties, Inc. RHP 0.58%
 Piedmont Office Realty Trust, Inc. PDM 0.57%
 Park Hotels & Resorts Inc. PK 0.55%
 LTC Properties, Inc. LTC 0.54%
 EPR Properties EPR 0.54%
 Four Corners Property Trust, Inc. FCPT 0.54%
 Hospitality Properties Trust HPT 0.53%
 PennyMac Mortgage Investment Trust PMT 0.53%
 Host Hotels & Resorts, Inc. HST 0.52%
 Weingarten Realty Investors WRI 0.52%
 Lamar Advertising Company LAMR 0.52%
 Ladder Capital Corp (Class A) LADR 0.52%
 Simon Property Group, Inc. SPG 0.51%
 Apollo Commercial Real Estate Finance, Inc. ARI 0.49%
 CoreCivic, Inc. CXW 0.47%
 New Residential Investment Corp. NRZ 0.46%
 Sabra Health Care REIT, Inc. SBRA 0.45%
 Xenia Hotels & Resorts, Inc. XHR 0.45%
 Senior Housing Properties Trust SNH 0.42%
 
Total Number of Holdings:    73
Underlying Securities information represented above is as of 02/21/2019 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.04500 January 18, 2019
$0.04500 February 20, 2019
$0.04500 March 20, 2019

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.

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.

Floating Rate Risk. Certain of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest rate benchmark. As a result, the yield on such a security will generally decline in a falling interest rate environment, causing the trust to experience a reduction in the income it receives from such securities.

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.

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.

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.

Senior Loans Risk. The yield on senior loans will generally decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans are generally below investment grade quality ("junk" bonds). An investment in senior loans involves the risk that the borrowers may default on their obligations to pay principal or interest when due.

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.

Term Risk - 15 months. Although this unit investment trust terminates in approximately 15 months, 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.

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
30310D582 (Cash)
30310D590 (Reinvest)
30310D608 (Cash-Fee)
30310D616 (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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