Interest Rate Hedge and ETF, Series 27
Ticker Symbol: FYOXAX
|35 Holdings (As of Day of Deposit)
|Exchange-Traded Funds (60.11%)
||Alerian MLP ETF
||Global X MLP & Energy Infrastructure ETF
||Global X MLP ETF
||Invesco Senior Loan ETF
||iShares 0-5 Year TIPS Bond ETF
||iShares Cohen & Steers REIT ETF
||iShares Convertible Bond ETF
||iShares Core 1-5 Year USD Bond ETF
||PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund
||PIMCO 1-5 Year U.S. TIPS Index ETF
||Schwab U.S. REIT ETF
||SPDR Bloomberg Barclays Convertible Securities ETF
||SPDR Dow Jones REIT ETF
||VanEck Vectors Investment Grade Floating Rate ETF
||Vanguard Short-Term Corporate Bond ETF
|Common Stocks (39.89%)
||The Allstate Corporation
||Ameriprise Financial, Inc.
||Best Buy Co., Inc.
||Eli Lilly and Company
||General Dynamics Corporation
||Honeywell International Inc.
||Lockheed Martin Corporation
||M.D.C. Holdings, Inc.
||Mondelez International, Inc.
||Quest Diagnostics Incorporated
||Steel Dynamics, Inc.
||Union Pacific Corporation
||UnitedHealth Group Incorporated
* As of the close of business on 10/21/20.
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 Accounts Cash CUSIP
|Fee Accounts 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. Due to the negative economic impact across many industries caused
by the recent COVID-19 outbreak, certain issuers of the securities included in the trust may elect
to reduce the amount of dividends and/or distributions paid in the future. As a result, the
“Historical 12-Month Distribution Rate of Trust Holdings,” which is based on the trailing twelve-month
distributions paid by the securities included in a trust, will likely be higher, and in some
cases significantly higher, than the actual distribution rate achieved by the trust. The historical
12-month distribution per unit is based on the weighted average of the trailing 12-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 12 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:
|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.
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 $0.050 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 consider the portfolio's investment objective, risks, and
charges and expenses carefully before investing. Contact your financial professional
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 exchangetraded
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.
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.
Certain of the ETFs 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 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 bond 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 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 ETFs 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 ETFs invest in TIPS which are subject to numerous risks including changes in interest rates,
economic recession and deterioration of the bond market or investors’ perception thereof.
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 cybersecurity.
The recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December
2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to
disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic
growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global
financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short
term or may last for an extended period of time, and in either case could result in a substantial economic
downturn or recession.
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
This unit investment trust is not an absolute return investment vehicle.
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