Limited Duration Fixed Income ETF, Series 31
Ticker Symbol: FDJADX
|24 Holdings (As of Day od Deposit)
|Convertible Securities Funds
||iShares Convertible Bond ETF
|High-Yield Bond Funds
||First Trust Tactical High Yield ETF
||iShares 0-5 Year High Yield Corporate Bond ETF
||iShares iBoxx $ High Yield Corporate Bond ETF
||SPDR Bloomberg Barclays High Yield Bond ETF
||SPDR Bloomberg Barclays Short Term High Yield Bond ETF
|Investment Grade Bond Funds
||Invesco Fundamental Investment Grade Corporate Bond ETF
||iShares Short-Term Corporate Bond ETF
||SPDR Portfolio Intermediate Term Corporate Bond ETF
||VanEck Vectors Investment Grade Floating Rate ETF
||Vanguard Short-Term Corporate Bond ETF
|Loan Participation Funds
||First Trust Senior Loan Fund
||Invesco Senior Loan ETF
||SPDR Blackstone/GSO Senior Loan ETF
|U.S. Government Bond Funds
||Franklin Liberty Short Duration U.S. Government ETF
||iShares Short Treasury Bond ETF
|U.S. Mortgage Bond Funds
||First Trust Low Duration Opportunities ETF
||iShares MBS ETF
||SPDR Bloomberg Barclays Mortgage Backed Bond ETF
||Vanguard Mortgage-Backed Securities ETF
|World Income Funds
||iShares Global High Yield Corporate Bond ETF
||iShares J.P. Morgan EM Corporate Bond ETF
||VanEck Vectors Emerging Markets High Yield Bond ETF
||WisdomTree Emerging Markets Local Debt Fund
*As of the close of business on 8/21/19.
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
|Historical 12-Month Distribution Rate of Trust Holdings:*
|Historical 12-Month Distribution Per Unit:*
|Fee Account Cash CUSIP
|Fee Account Reinvestment 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. Distributions may include realized short term capital gains,
realized long-term capital gains and/or return of capital. 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 12/20/19.
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 objective, 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 owning ETFs and fixed-income securities.
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 ETFs in which the portfolio invests may employ the
use of leverage, which increases the volatility of such funds.
Certain of the ETFs 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. Certain of the floating-rate securities pay interest based
on LIBOR. Due to the uncertainty regarding the future utilization of LIBOR and the nature of any
replacement rate, the potential effect of a transition away from LIBOR on a fund or the financial
instruments in which the fund invests cannot yet be determined.
Certain 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 short-term credit
developments to a greater degree.
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 market or investors’ perception thereof, possible downgrades and defaults of
interest and/or principal.
Certain of the ETFs invest in limited duration bonds. Limited duration bonds are subject to interest
rate risk, which is the risk that the value of a security will fall if interest rates increase. While
limited duration bonds are generally subject to less interest rate sensitivity than longer duration
bonds, there can be no assurance that interest rates will not rise during the life of the trust.
Certain of the ETFs invest in senior loans. The yield on ETFs which invest in 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.
Certain of the ETFs invest in covenant-lite loans which contain fewer or no maintenance
covenants and may hinder the ETF’s ability to reprice credit risk and mitigate potential loss
especially during a downturn in the credit cycle.
Certain of the ETFs invest in mortgage-backed securities. Rising interest rates tend to extend the
duration of mortgage-backed securities, making them more sensitive to changes in interest
rates, and may reduce the market value of the securities. In addition, mortgage-backed securities
are subject to prepayment risk, the risk that borrowers may pay off their mortgages sooner than
expected, particularly when interest rates decline.
Certain of the ETFs invest in U.S. Treasury obligations which are subject to numerous risks
including higher interest rates, economic recession and deterioration of the bond market or
investors’ perceptions thereof.
Certain of the ETFs invest in securities issued by
foreign issuers which are subject to certain risks including currency and interest rate fluctuations,
political risks, 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.
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.
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.
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.
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.
For a discussion of additional risks of investing in the trust see the “Risk Factors” section of