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Interest Rate Hedge Portfolio, Series 126
Ticker Symbol: FOUSZX

35 Holdings (As of Day of Deposit)
Ticker Name Initial
Weight
Price*
Closed-End Funds (60%)
NIE AllianzGI Equity & Convertible Income Fund 5.00% $21.17
CCD Calamos Dynamic Convertible and Income Fund 5.00% 19.74
IGR CBRE Clarion Global Real Estate Income Fund 5.00% 7.55
CTR ClearBridge MLP & Midstream Total Return Fund Inc. 4.00% 8.55
RFI Cohen & Steers Total Return Realty Fund, Inc. 5.00% 14.37
KMF Kayne Anderson Midstream/Energy Fund, Inc. 4.00% 10.17
MIN MFS Intermediate Income Trust 3.75% 3.80
NML Neuberger Berman MLP & Energy Income Fund Inc. 4.00% 6.71
JMF Nuveen Energy MLP Total Return Fund 4.00% 7.99
PIM Putnam Master Intermediate Income Trust 3.75% 4.54
PPT Putnam Premier Income Trust 3.75% 5.20
SMM Salient Midstream & MLP Fund 4.00% 7.26
GIM Templeton Global Income Fund 3.75% 6.10
WIA Western Asset Inflation-Linked Income Fund 2.50% 11.70
WIW Western Asset Inflation-Linked Opportunities & Income Fund 2.50% 11.19
Common Stocks (40%)
AMP Ameriprise Financial, Inc. 2.02% 122.75
ABC AmerisourceBergen Corporation 2.02% 85.97
AMGN Amgen Inc. 1.99% 199.31
BBY Best Buy Co., Inc. 1.99% 63.93
CSCO Cisco Systems, Inc. 2.01% 46.25
CMI Cummins Inc. 1.97% 146.03
DAL Delta Air Lines, Inc. 2.01% 57.11
HON Honeywell International Inc. 2.00% 162.27
HUBB Hubbell Incorporated 2.02% 123.09
KLAC KLA Corporation 2.02% 132.04
LMT Lockheed Martin Corporation 1.97% 373.46
LYB LyondellBasell Industries N.V. 2.00% 72.60
OMC Omnicom Group Inc. 2.00% 75.70
PEP PepsiCo, Inc. 2.00% 130.72
PSX Phillips 66 2.00% 97.47
TROW T. Rowe Price Group, Inc. 1.98% 105.46
TGT Target Corporation 1.99% 82.56
TEL TE Connectivity Ltd. 2.00% 87.29
UNH UnitedHealth Group Incorporated 2.01% 244.25
WBA Walgreens Boots Alliance, Inc. 2.00% 49.29

* As of the close of business on 8/15/19.
Market values are for reference only and are not indicative of your individual cost basis.


Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Portfolio Summary
Initial Date of Deposit 8/16/2019
Initial Public Offering Price $10.00 per Unit
Portfolio Ending Date 8/16/2021
Historical 12-Month Distribution Rate of Trust Holdings:* 5.65%
Historical 12-Month Distribution Per Unit:* $0.5645
Cash CUSIP 30311H525
Reinvestment CUSIP 30311H533
Fee Accounts Cash CUSIP 30311H541
Fee Accounts Reinvestment CUSIP 30311H558

*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 price)
Standard Accounts
Transactional Sales Charges: Initial: 0.00%
  Deferred: 2.25%
Creation & Development Fee:   0.50%
Maximum Sales Charge:   2.75%

The deferred sales charge will be deducted in three monthly installments commencing 11/20/19.

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.

Fee/Wrap Accounts
Maximum Sales Charge: 0.50%

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 0.50%.

In addition to the sales charges listed, UITs are subject to annual operating expenses and organization costs.

You should carefully consider the portfolio investment objective, 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 portfolio. Read it carefully before you invest.

Risk Considerations
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 closed-end funds.

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.

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 the fund’s net asset value, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain of the closed-end funds in the portfolio employ the use of leverage, which increases the volatility of such funds.

Certain of the closed-end funds invest in convertible securities. 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.

Certain of the closed-end funds 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 that utilize such bonds. 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 bonds and are affected by short-term credit developments to a greater degree.

Certain of the closed-end funds 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.

Certain of the closed-end funds 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 rise during the life of the trust.

Certain of the closed-end funds invest in MLPs. Investments in MLPs are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. U.S. taxing authorities could challenge the trust's treatment of the MLPs for federal income tax purposes. These tax risks could have a negative impact on the after-tax income available for distribution by the MLPs and/or the value of the trust's investments.

Certain of the closed-end funds invest in options. 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.

Certain of the closed-end funds invest in REITs. 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.

Certain of the closed-end funds invest in TIPS. TIPS are subject to numerous risks including changes in interest rates, economic recession and deterioration of the bond market or investors’ perception thereof.

Certain of the closed-end funds 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.

An investment in foreign equities 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.

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.

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.

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.

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.

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.

For a discussion of additional risks of investing in the trust see the “Risk Factors” section of the prospectus.

 
Fund Cusip Information
30311H525 (Cash)
30311H533 (Reinvest)
30311H541 (Cash-Fee)
30311H558 (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, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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