S&P Dividend Aristocrats Buy-Write, Series 7
Ticker Symbol: FIURMX
|54 Holdings (As of Day of Deposit)
||Automatic Data Processing, Inc.
||Cardinal Health, Inc.
||The Clorox Company
||Exxon Mobil Corporation
||General Dynamics Corporation
||Illinois Tool Works Inc.
||Johnson & Johnson
||Lowe’s Companies, Inc.
||PPG Industries, Inc.
||The Procter & Gamble Company
||Stanley Black & Decker, Inc.
||W.W. Grainger, Inc.
||Walgreens Boots Alliance, Inc.
|Description of Call Options
||01/15/21 Abbott Laboratories C 105
||01/15/21 AbbVie Inc. C 77.50
||01/15/21 Automatic Data Processing, Inc. C 200
||01/15/21 Cardinal Health, Inc. C 55
||01/15/21 Chevron Corporation C 150
||01/15/21 The Clorox Company C 190
||01/15/21 Exxon Mobil Corporation C 85
||01/15/21 General Dynamics Corporation C 220
||01/15/21 Illinois Tool Works Inc. C 180
||01/15/21 Johnson & Johnson C 160
||01/15/21 Kimberly-Clark Corporation C 165
||01/15/21 Lowe's Companies, Inc. C 115
||01/15/21 McDonald's Corporation C 260
||01/15/21 Medtronic Plc C 125
||01/15/21 Nucor Corporation C 60
||01/15/21 PepsiCo, Inc. C 155
||01/15/21 PPG Industries, Inc. C 135
||01/15/21 The Procter & Gamble Company C 140
||01/15/21 Stanley Black & Decker, Inc. C 165
||01/15/21 Sysco Corporation C 90
||01/15/21 Target Corporation C 100
||01/15/21 V.F. Corporation C 100
||01/15/21 W.W. Grainger, Inc. C 320
||01/15/21 Walgreens Boots Alliance, Inc. C 65
||01/15/21 Walmart, Inc. C 130
|U.S. Treasury Note, 1.75%, due 11/30/2019
|U.S. Treasury Note, 2.25%, due 02/29/2020
|U.S. Treasury Note, 2.50%, due 05/31/2020
|U.S. Treasury Note, 2.625%, due 08/31/2020
1 As of the close of business on 8/13/19.
Market values are for reference only and are not indicative of your individual
2 Represents market value per contract. Each contract entitles the
holder to purchase 100 shares of common stock at the strike price.
|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 Strike Price of the LEAPS as a % of the
Market Price of the Common Stocks:
|Historical 12-Month Distribution Rate of Trust Holdings:*
|Historical 12-Month Distribution Per Unit:*
|Fee Account Cash CUSIP
*There is no guarantee the issuers of the securities included in the trust will declare dividends or
distributions in the future. The historical 12-month distribution per unit and historical 12-month
distribution rate of the securities included in the trust are for illustrative purposes only and are not
indicative of the trust’s distribution or distribution rate. The historical 12-month distribution per
unit is based on the weighted average of the trailing twelve month distributions paid by the
securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing
the historical 12-month distributions by the trust’s offering price. The historical 12-month
distribution and rate are 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 per unit and 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.
|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 $10.00 per
unit, the creation and development fee will be less than 0.50%; if the price
you pay is less than $10.00 per unit, the creation and development fee will exceed
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.
The S&P 500 Dividend Aristocrats Index is a product of S&P Dow Jones Indices LLC or its affiliates
("SPDJI") and has been licensed for use by First Trust Portfolios L.P. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a
registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these
trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First
Trust Portfolios L.P. The S&P Dividend Aristocrats Buy-Write Portfolio is not sponsored, endorsed,
sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties
make any representation regarding the advisability of investing in such product nor do they have
any liability for any errors, omissions, or interruptions of the S&P 500 Dividend Aristocrats Index.
An investment in this unmanaged unit investment trust should be
made with the understanding of the risks involved with common stocks, LEAPS, and U.S.
Common stocks are subject to 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.
The value of U.S. Treasury notes will be adversely affected by decreases in bond prices and
increases in interest rates.
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 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.
You should be aware that the portfolio is concentrated in stocks in the consumer products sector
which involves additional risks, including limited diversification. The companies engaged in the
consumer products industry 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.
One of the common stocks held by the trust is issued by a foreign entity. An investment in a
portfolio which includes foreign securities should be made with an understanding of the
additional risks involved, such as currency fluctuations, political risk, the lack of adequate financial
information and exchange control restrictions impacting foreign issuers.
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
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
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.
Although this portfolio terminates in approximately 17 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.