Banking Opportunity Portfolio, Series 34
Following extraordinary turmoil after the 2008 financial crisis, U.S. banks continue to make progress. According to the FDIC, for the fourth quarter 2018, quarterly net income for all insured commercial
banks and savings institutions totaled $59.1 billion, an increase of $33.8 billion from a year earlier. Through December 31, 2018, only 3.24% of insured banks were reported as unprofitable institutions.
Thanks in part to consolidation, U.S. banks have achieved remarkable growth in assets. At year-end
2000, the 9,904 reporting FDIC-insured commercial banks and savings institutions had aggregate assets
of $7.5 trillion; as of December 31, 2018, the number of reporting banks had fallen to 4,715 while total
assets increased to $16.7 trillion, a gain of over 123% in assets.*
Improved efficiency, lower operating costs and increased volume are a few of the benefits of
consolidation. With the financial demands of an aging population, continued competition and the vast
number of financial choices, we believe consolidation will continue to play an important role as
institutions seek to grow their capabilities and gain market share.
This unit investment trust seeks above-average capital appreciation by investing in an
unmanaged, diversified portfolio of commercial banks; however, there is no assurance
the objective will be met.
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.
FDIC Insured, Not Bank Guaranteed and May Lose Value.
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.
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.
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
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.
Although this portfolio terminates in approximately 15 months, the strategy is long-term.
Investors should consider their ability to pursue investing in successive portfolios, if available.
There may be tax consequences unless units are purchased in an IRA or other qualified plan.