Balanced Income Equity
and ETF Opportunity Portfolio, Series 3
Ticker Symbol: FSKPJX
|Common Stocks (50.07%)
|Consumer Discretionary (6.70%)
||General Motors Company
||Valero Energy Corporation
||JPMorgan Chase & Co.
||Prudential Financial, Inc.
|Health Care (6.72%)
||Johnson & Johnson
||The Boeing Company
||Eaton Corporation Plc
|Information Technology (6.66%)
||Cisco Systems, Inc.
||LyondellBasell Industries N.V.
|High-Yield Bond Funds (16.60%)
||iShares iBoxx $ High Yield Corporate Bond ETF
||PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund
||PowerShares Global Short Term High Yield Bond Portfolio
||SPDR Bloomberg Barclays High Yield Bond ETF
||SPDR Bloomberg Barclays Short Term High Yield Bond ETF
|Investment Grade Bond Funds (16.68%)
||iShares Core 10+ Year USD Bond ETF
||iShares iBoxx $ Investment Grade Corporate Bond ETF
||SPDR Portfolio Long Term Corporate Bond ETF
||Vanguard Intermediate-Term Corporate Bond ETF
||Vanguard Long-Term Corporate Bond ETF
|World Income Funds (16.65%)
||iShares Emerging Markets High Yield Bond ETF
||PowerShares Emerging Markets Sovereign Debt Portfolio
||VanEck Vectors Emerging Markets High Yield Bond ETF
||VanEck Vectors International High Yield Bond ETF
||VanEck Vectors J.P. Morgan EM Local Currency Bond ETF
* As of the close of business on 1/22/18.
Market values are for reference only and are not indicative of your individual
|Not FDIC Insured Not Bank Guaranteed May Lose Value
|Initial Date of Deposit
|Initial Public Offering Price
||$10.00 per Unit
| Portfolio Ending Date
|Estimated Net Annual Distribution per Unit:*
|Fee Account Cash CUSIP
|Fee Account Reinvestment CUSIP
*The estimate is 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 dividends in the future or that, if declared, they will remain
at current levels or increase over time.
|Sales Charges (based on a $10 public offering
|Transactional Sales Charges:
|Creation & Development Fee:
|Maximum Sales Charge:
The deferred sales charge will be deducted in three monthly installments commencing
When the public offering price is less than or equal to $10.00 per unit, there will be no initial sales charge. If
the price exceeds $10.00 per unit, you will pay an initial sales charge.
|Maximum Sales Charge:
The maximum sales charge for investors in fee accounts consists of the creation and development fee.
Investors in fee accounts are not assessed any transactional sales charges. Standard accounts sales charges
apply to units purchased as an ineligible asset.
The creation and development fee is a charge of $.050 per unit collected at the end of the initial offering
period. If the price you pay exceeds $10 per unit, the creation and development fee will be less than 0.50%;
if the price you pay is less than $10 per unit, the creation and development fee will exceed 0.50%.
In addition to the sales charges listed, UITs are subject to annual operating expenses and organization costs.
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully 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 portfolio. Read it carefully
before you invest.
An investment in this unmanaged unit investment trust should be made with an understanding of
the risks involved with an investment in a portfolio of common stocks and ETFs.
Common stocks are 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.
ETFs 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 ETFs 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, ETFs frequently trade at a discount
from their net asset value in the secondary market. Certain of the ETFs may employ the use of leverage which increases the volatility of such funds.
An investment in a portfolio
which includes securities issued by foreign companies should be made with an understanding of
the additional risks involved with foreign issuers, such as currency fluctuations, political risk,
withholding, the lack of adequate financial information, and exchange control restrictions impacting
foreign issuers. 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.
All of the ETFs invest in investment grade securities.
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.
All of the ETFs invest in high-yield securities or "junk" bonds.
Investing in high-yield securities 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 shortterm
credit developments to a greater degree.
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.
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
Although this portfolio 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.
For a discussion of additional risks of investing in the trust see the "Risk
Factors" section of the prospectus.