Technology Dividend Buy-Write Portfolio, Series 9
Ticker Symbol: FUUKFX
54 Holdings (As of Day of Deposit) |
Ticker |
Company Name |
Initial
Weight |
Price1 |
Equity Securities |
ACN |
Accenture Plc |
3.88% |
$274.16 |
ADI |
Analog Devices, Inc. |
4.53% |
159.92 |
AVGO |
Broadcom Inc. |
4.04% |
570.57 |
CSCO |
Cisco Systems, Inc. |
4.28% |
48.36 |
CTSH |
Cognizant Technology Solutions Corporation |
3.97% |
70.23 |
GLW |
Corning Incorporated |
4.22% |
34.06 |
FIS |
Fidelity National Information Services, Inc. |
4.11% |
96.73 |
HPE |
Hewlett Packard Enterprise Company |
4.13% |
15.76 |
HPQ |
HP Inc. |
4.04% |
36.85 |
INTC |
Intel Corporation |
4.04% |
42.35 |
IBM |
International Business Machines Corporation |
3.76% |
132.94 |
JNPR |
Juniper Networks, Inc. |
4.12% |
29.85 |
KLAC |
KLA Corporation |
4.72% |
333.85 |
LRCX |
Lam Research Corporation |
3.38% |
477.48 |
MCHP |
Microchip Technology Incorporated |
4.21% |
66.14 |
MSFT |
Microsoft Corporation |
3.59% |
254.08 |
NTAP |
NetApp, Inc. |
4.00% |
70.73 |
NXPI |
NXP Semiconductors N.V. |
3.72% |
175.39 |
ORCL |
Oracle Corporation |
3.87% |
68.30 |
PAYX |
Paychex, Inc. |
4.15% |
117.44 |
QCOM |
QUALCOMM Incorporated |
3.69% |
130.45 |
STX |
Seagate Technology Holdings Plc |
4.16% |
84.10 |
SWKS |
Skyworks Solutions, Inc. |
4.32% |
101.79 |
TSM |
Taiwan Semiconductor Manufacturing Company Ltd. |
3.84% |
90.53 |
TXN |
Texas Instruments Incorporated |
3.61% |
170.30 |
Description of Call Options |
|
Call Premium2 |
LEAPS |
ACN |
01/19/24 Accenture Plc C 330 |
-0.40% |
$2,838.00 |
ADI |
01/19/24 Analog Devices, Inc. C 195 |
-0.36% |
1,260.00 |
AVGO |
01/19/24 Broadcom Inc. C 680 |
-0.38% |
5,420.00 |
CSCO |
01/19/24 Cisco Systems, Inc. C 57.50 |
-0.31% |
355.00 |
CTSH |
01/19/24 Cognizant Technology Solutions Corporation C 85 |
-0.32% |
560.00 |
GLW |
01/19/24 Corning Incorporated C 42 |
-0.33% |
265.00 |
FIS |
01/19/24 Fidelity National Information Services, Inc. C 115 |
-0.38% |
890.00 |
HPE |
01/19/24 Hewlett Packard Enterprise Company C 20 |
-0.32% |
123.00 |
HPQ |
01/19/24 HP Inc. C 45 |
-0.52% |
470.00 |
INTC |
01/19/24 Intel Corporation C 50 |
-0.46% |
477.00 |
IBM |
01/19/24 International Business Machines Corporation C 160 |
-0.23% |
825.00 |
JNPR |
01/19/24 Juniper Networks, Inc. C 37 |
-0.26% |
185.00 |
KLAC |
01/19/24 KLA Corporation C 400 |
-0.59% |
4,160.00 |
LRCX |
01/19/24 Lam Research Corporation C 580 |
-0.46% |
6,550.00 |
MCHP |
01/19/24 Microchip Technology Incorporated C 80 |
-0.53% |
830.00 |
MSFT |
01/19/24 Microsoft Corporation C 310 |
-0.33% |
2,299.00 |
NTAP |
01/19/24 NetApp, Inc. C 85 |
-0.43% |
760.00 |
NXPI |
01/19/24 NXP Semiconductors N.V. C 210 |
-0.47% |
2,220.00 |
ORCL |
01/19/24 Oracle Corporation C 82.50 |
-0.35% |
610.00 |
PAYX |
01/19/24 Paychex, Inc. C 140 |
-0.26% |
730.00 |
QCOM |
01/19/24 QUALCOMM Incorporated C 160 |
-0.46% |
1625.00 |
STX |
01/19/24 Seagate Technology Holdings Plc C 100 |
-0.46% |
930.00 |
SWKS |
01/19/24 Skyworks Solutions, Inc. C 125 |
-0.50% |
1,180.00 |
TSM |
01/19/24 Taiwan Semiconductor Manufacturing Company Ltd. C 110 |
-0.39% |
930.00 |
TXN |
01/19/24 Texas Instruments Incorporated C 210 |
-0.23% |
1,090.00 |
Treasury Obligations |
U.S. Treasury Note, 0.125%, due 08/31/2022 |
2.33% |
|
U.S. Treasury Note, 1.625%, due 11/15/2022 |
2.34% |
|
U.S. Treasury Note, 2.625%, due 02/28/2023 |
2.35% |
|
U.S. Treasury Note, 1.75%, due 05/15/2023 |
2.33% |
|
1 As of the close of business on 5/18/22.
Market values are for reference only and are not indicative of your individual
cost basis.
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 |
Portfolio Summary |
Initial Date of Deposit |
5/19/2022 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
1/24/2024 |
Estimated Strike Price of the LEAPS as a % of the
Market Price of the Common Stocks |
121.13% |
Historical 12-Month Distribution Rate of Trust Holdings* |
1.94% |
Historical 12-Month Distribution Per Unit* |
$0.1941 |
CUSIP |
30326N822 |
Fee Account Cash CUSIP |
30326N830 |
*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 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
price) |
Standard Accounts |
Transactional Sales Charges |
Initial: |
0.00% |
|
Deferred: |
2.25% |
Creation & Development Fee (C&D Fee) |
|
0.50% |
Maximum Sales Charge |
|
2.75% |
Fee/Wrap Accounts |
Maximum Sales Charge |
|
0.50% |
The deferred sales charge will be deducted in three monthly installments commencing 8/19/22. 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 C&D 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 C&D 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 C&D fee will be less than 0.50%; if the price you pay is less than $10.00 per unit, the C&D 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 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.
Risk Considerations
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. Treasury notes.
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
operating performance.
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non- U.S. 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.
In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.
The COVID-19 global pandemic has caused and may continue to cause significant volatility and declines in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.
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.