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Biotechnology Portfolio, Series 37

While biotechnology has already had a significant impact on the diagnosis, treatment and prevention of diseases, we believe further advances could potentially bring about radically new approaches to health care. We are in a new era in medical research and health care made possible by the exponential growth in knowledge of gene structure and function. The Human Genome Project has opened new doors to breakthrough research. At the start of the project in 1990, scientists had discovered fewer than 100 human disease genes. After completion of the project, more than 1,400 disease genes had been identified.1

Research and development has afforded many patients access to new and better medicines that are allowing them to maintain their normal lives, instead of being debilitated by a disease. In fact, some diseases once considered fatal have now evolved into "chronic diseases" that can be managed, due in large measure to advances in diagnostic procedures and new medicines developed by biotechnology and pharmaceutical companies.


Consider the following factors:

  • More than 250 biotechnology health care products and vaccines are currently available to patients, many for previously untreatable diseases.2
  • Biotechnology is becoming more involved in the agriculture sector. Agricultural biotechnology benefits farmers, consumers and the environment by increasing yields and farm income, decreasing pesticide applications and improving soil and water quality, and providing healthful foods for consumers. More than 13.3 million farmers globally use agricultural biotechnology.3
  • We believe the outlook for long-term investing remains quite encouraging due to promising drug launches, cost-cutting efforts, an aging population, increasing health care spending, increased merger & acquisition activity, expansion into emerging markets.

1 DOEgenomes.org

2,3 Biotechnology Industry Organization

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Portfolio Objective

This unit investment trust seeks above-average capital appreciation; however, there is no assurance the objective will be met.

You should consider the portfolio's investment objective, 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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

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 biotechnology and pharmaceutical companies in the health care sector which involves additional risks, including limited diversification. The companies engaged in the biotechnology and pharmaceutical industries are subject to fierce competition, substantial research and development costs, governmental regulations, pricing constraints, and their products and services may be subject to rapid obsolescence. Biotechnology and pharmaceutical stocks have experienced extreme price and volume fluctuations that are often unrelated to their operating performance. In addition, implementation of the Health Care and Education Affordability Reconciliation Act of 2010 continues to have significant implications for companies in the health care sector.

An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as the share prices of smallcap 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.

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.

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 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.

 
The information in the prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
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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 and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
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