Capital Strength Buy-Write, Series 56
Ticker Symbol: FHXYLX
|54 Holdings (As of Day of Deposit)
||Activision Blizzard, Inc.
||Applied Materials, Inc.
||Costco Wholesale Corporation
||D.R. Horton, Inc.
||Deere & Company
||Dollar General Corporation
||Honeywell International Inc.
||Lowe’s Companies, Inc.
||Monster Beverage Corporation
||PayPal Holdings, Inc.
||Regeneron Pharmaceuticals, Inc.
||Skyworks Solutions, Inc.
||Thermo Fisher Scientific Inc.
||Union Pacific Corporation
||UnitedHealth Group Incorporated
|Description of Call Options
||01/20/23 Activision Blizzard, Inc. C 115
||01/20/23 Adobe Incorporated C 550
||01/20/23 Apple Inc. C 150
||01/20/23 Applied Materials, Inc. C 145
||01/20/23 Costco Wholesale Corporation C 400
||01/20/23 Cummins Inc. C 320
||01/20/23 D.R. Horton, Inc. C 100
||01/20/23 Deere & Company C 450
||01/20/23 Dollar General Corporation C 230
||01/20/23 Facebook, Inc. C 340
||01/20/23 Honeywell International Inc. C 260
||01/20/23 Lowe's Companies, Inc. C 210
||01/20/23 Mastercard Incorporated C 460
||01/20/23 Microsoft Corporation C 285
||01/20/23 Monster Beverage Corporation C 110
||01/20/23 NIKE, Inc. C 175
||01/20/23 NVIDIA Corporation C 650
||01/20/23 PayPal Holdings, Inc. C 310
||01/20/23 Regeneron Pharmaceuticals, Inc. C 585
||01/20/23 Skyworks Solutions, Inc. C 220
||01/20/23 Target Corporation C 220
||01/20/23 Thermo Fisher Scientific Inc. C 550
||01/20/23 Union Pacific Corporation C 260
||01/20/23 UnitedHealth Group Incorporated C 430
||01/20/23 Zoetis Inc. C 185
|U.S. Treasury Note, 2.625%, due 06/15/2021
|U.S. Treasury Note, 2.75%, due 09/15/2021
|U.S. Treasury Note, 2.625%, due 12/15/2021
|U.S. Treasury Note, 2.375%, due 03/15/2022
1As of the close of business on 3/16/21.
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. Due to the negative economic impact across many industries caused
by the 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
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 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 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 information technology sector which
involves additional risks, including limited diversification. The companies engaged in the information
technology sector are subject to fierce competition, high research and development costs, and their products
and services may be subject to rapid obsolescence. Technology company stocks, especially those which are
Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their
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 cybersecurity.
The COVID-19 global pandemic has resulted in major disruptions to economies and markets around the world. Financial markets have experienced extreme volatility and severe losses, negatively impacting global economic
growth prospects. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty and may exacerbate other political, social and economic risks.
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.