Banking Opportunity Portfolio, Series 37
Following extraordinary turmoil after the 2008 financial crisis, U.S. banks continue to make progress. According to the FDIC, for the third quarter 2019, quarterly net income for all insured commercial
banks and savings institutions totaled $57.4 billion. Through September 30, 2019, only 3.46% of insured banks were reported as unprofitable institutions.
Thanks in part to consolidation, U.S. banks have achieved remarkable growth in assets. At yearend
2000, the 9,904 reporting FDIC-insured commercial banks and savings institutions had
aggregate assets of $7.5 trillion; as of September 30, 2019, the number of reporting banks had
fallen to 4,587 while total assets increased to $17.3 trillion, a gain of over 131% in assets.1
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.
One of the common stocks held by the trust is issued by a foreign entity. An investment in a portfolio
containing equity securities of foreign issuers is subject to additional risks, including currency fluctuations,
political risks, withholding, the lack of adequate financial information, and exchange control restrictions
impacting foreign 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
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.
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.