Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       


S&P Target SMid 60 Portfolio, 3rd Quarter 2024 Series

The Strategy

This unit investment trust invests in a fixed portfolio of stocks for approximately 15 months. The stocks are selected by applying a disciplined investment strategy which adheres to pre-determined screens and factors. The strategy seeks to identify small and mid-capitalization stocks with improving fundamental performance and market sentiment.

The strategy focuses on small and mid-size companies because we believe they are more likely to be in an earlier stage of their economic life cycle than mature large-cap companies. In addition, the ability to take advantage of share price discrepancies is likely to be greater with smaller stocks than with more widely followed large-cap stocks, in our opinion. The portfolio seeks above-average total return; however, there is no assurance the objective will be met.

Portfolio Selection Process

The strategy is based on these important steps:

  • Begin with the stocks that comprise the S&P MidCap 400 and the S&P SmallCap 600 Indices.

  • Rank the stocks in each index by price-to-book value. Select the best quartile from each index - 100 stocks from the S&P MidCap 400 Index and 150 stocks from the S&P SmallCap 600 Index with the lowest, but positive, price-to-book ratio.

  • Rank each stock on three factors:

    • Price to cash flow

    • 12-month change in return on assets

    • 3-month price appreciation

  • Eliminate any regulated investment companies, limited partnerships, business development companies, and stocks with a market capitalization of less than $250 million and with an average daily trading volume of less than $250,000.

  • The 30 stocks from each index with the highest combined ranking on the three factors are selected for the portfolio.

  • The stocks selected from the S&P MidCap 400 Index are given approximately twice the weight of the stocks selected from the S&P SmallCap 600 Index.

It is important to note that the past performance of the strategy is hypothetical and it is not indicative of the future performance of the S&P Target SMid 60 Portfolio.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Mountain Chart

Standard Deviations* Average Annual Total Returns*
S&P 1000
Strategy S&P 1000
Since 1995 18.16% 22.47% 11.46% 9.83%
25 years 18.28% 23.62% 9.68% 8.21%
20 years 18.26% 23.88% 9.76% 5.32%
15 years 18.76% 25.46% 13.14% 8.30%
10 years 18.64% 26.02% 9.09% 1.83%
5 years 22.83% 33.04% 12.14% 5.93%
3 years 20.22% 24.32% 7.85% 18.86%
*Through 12/29/23

Annual Total Returns
Year S&P 1000


1995 30.69% 25.20%
1996 19.85% 13.08%
1997 30.26% 41.93%
1998 13.20% 4.75%
1999 14.11% 23.73%
2000 15.86% 13.91%
2001 1.45% 31.86%
2002 -14.54% -5.40%
2003 36.61% 45.15%
2004 18.39% 23.37%
2005 10.93% 2.94%
2006 11.89% 19.56%
2007 5.18% -9.78%
2008 -34.67% -37.76%
2009 33.48% 59.74%
2010 26.55% 14.94%
2011 -0.92% -8.93%
2012 17.40% 20.25%
2013 35.87% 37.24%
2014 8.54% -0.41%
2015 -2.11% -9.02%
2016 22.49% 30.60%
2017 15.33% -0.24%
2018 -10.30% -23.86%
2019 25.14% 3.07%
2020 12.98% -22.95%
2021 25.35% 48.84%
2022 -13.98% -13.20%
2023 16.35% 29.98%
6/28/24 4.03% -6.12%

Past performance is no guarantee of future results and the actual current performance of the portfolio may be lower or higher than the hypothetical performance of the strategy. Hypothetical returns for the strategy in certain years were significantly higher than the returns of the S&P 1000 Index. Hypothetical strategy returns were the result of certain market factors and events which may not be replicated in the future. You can obtain performance information which is current through the most recent month-end by calling First Trust Portfolios L.P. at 1-800-621-1675 option 2. Investment return and principal value of the portfolio will fluctuate causing units of the portfolio, when redeemed, to be worth more or less than their original cost.

Simulated strategy returns are hypothetical, meaning that they do not represent actual trading, and, thus, may not reflect material economic and market factors, such as liquidity constraints, that may have had an impact on actual decision making. The hypothetical performance is the retroactive application of the strategy designed with the full benefit of hindsight. Strategy returns reflect a sales charge of 1.85% and estimated annual operating expenses of 0.195%, plus organization costs, but not taxes or commissions paid by the portfolio to purchase securities. Strategy returns assume that all dividends are reinvested semi-annually while index returns assume dividends are reinvested when they are received. Actual portfolio performance will vary from that of investing in the strategy stocks because it may not be invested equally in these stocks and may not be fully invested at all times. It is important to note that the strategy may underperform the S&P 1000 Index in certain years and may produce negative results.

The S&P 1000 Index is an unmanaged index of 1000 stocks used to measure small and mid-cap U.S. stock market performance by combining the S&P MidCap 400 and S&P SmallCap 600 indices. An index cannot be purchased directly by investors.

Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.

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 an understanding of the risks involved with owning common stocks, 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.

You should be aware that the portfolio is concentrated in stocks in the financials sector which involves additional risks, including limited diversification. The companies engaged in the financials sector are subject to the adverse effects of volatile interest rates, economic recession, decreases in the availability of capital, increased competition from new entrants in the field, and potential increased regulation.

Certain of the securities in the portfolio are issued by Real Estate Investment Trusts (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.

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.

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 cybersecurity.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East 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 ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future 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.

The S&P MidCap 400 and the S&P SmallCap 600 Indices are products of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and have been licensed for use by First Trust Portfolios L.P. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust Portfolios L.P. The S&P Target SMid 60 Portfolio is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P MidCap 400 and the S&P SmallCap 600 Indices.


CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Fund Cusip Information
30336F645 (Cash)
30336F652 (Reinvest)
30336F660 (Cash-Fee)
30336F678 (Reinvest-Fee)
Printer Friendly Page Printer Friendly Page
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 professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.