Aerospace & Defense Portfolio, Series 22
As the name implies, the aerospace and defense industry serves two main markets:
Largely comprised of companies involved in the production, sale, and service of commercial aircraft. Increases in passenger travel demand, especially from countries experiencing
continued wealth creation in the Middle East and the Asia-Pacific region, as well as replacing outdated aircraft with next generation, fuel-efficient aircraft is expected to drive growth in the
commercial aerospace sector. The worldwide commercial passenger and cargo aircraft fleet as well as the annual number of passengers are anticipated to double over the next two decades.1
Dependent on a nation's need for military weapons and systems designed to operate on land, sea, and in the air. The United States military is unquestionably the dominant force in the
world. Defense spending has been increasing in several areas of the globe, as security threats continue to emerge that pose risk to a nation's safety.2
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met.
| Not FDIC Insured Not Bank Guaranteed May Lose Value
You should consider the portfolio's
investment objectives, risks, and charges and
expenses carefully 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.
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
The portfolio is concentrated in stocks in the industrials sector
making it subject to additional risks, including limited
diversification. The companies engaged in the industrials sector
are subject to certain risks, including a deterioration in the
general state of the economy, intense competition, domestic
and international politics, excess capacity and changing
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.
The companies involved in the aerospace and defense industries
are subject to fierce competition, consolidation, adverse
political and government developments, substantial research
and development costs, limited numbers of potential customers
and excess capacity and spending trends. Their products and
services may be subject to rapid obsolescence.
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
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
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 cyber security.