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Communication Services Opportunity, Series 1

With the convergence of technology and entertainment and consumer use of both, Standard & Poor’s and MSCI are making material changes to the Global Industry Classification Standard (GICS). The Telecommunication Services sector is being renamed Communication Services and broadened to include media and entertainment companies. With these changes, the new classification will bring a more modern, updated approach to the everchanging technology landscape. As the lines between traditional media and new technology continue to blur, this reclassification acknowledges changing consumer habits and companies influencing that change. With the changes, a new growth element is being introduced to what has traditionally been viewed as a more value-oriented sector.

Consider The Following Factors

  • Broadcast TV viewership trends have been declining, particularly among young people as competing platforms from Google’s YouTube, Facebook and Netflix gain mindshare.
  • The decline in TV ad spending is projected to continue in 2018 with TV’s share of total U.S. media ad spending dropping from 33.9% in 2017 to 31.6% this year. Meanwhile, total digital ad spending is projected to climb 18.7% this year to $107.3 billion.1
  • In 2017, worldwide social network users reached 2.46 billion individuals with 81% of the U.S. population having a social networking profile.2
  • 2017 was the first year in history in which watching downloaded or streamed video was more popular than watching traditional TV among U.S. consumers aged 45 and under.3
  • For the first time, streaming services topped the 2018 Emmy nominations with Netflix earning 112 nominations, knocking HBO into second place with 108.4
  • Video on demand, content streaming and hyper-targeted content and advertising are just a few of the developments that have the potential to transform the media and entertainment industry this year.5

1,4 Forbes
2 Statista
3 Mediakix
5 Deloitte

Portfolio Objectives

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.

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.

The companies engaged in the communication services sector are subject to rapidly changing technology, rapid product obsolescence, loss of patent protection, cyclical market patterns, governmental regulation, evolving industry standards and frequent new product introductions. Certain companies may be particularly susceptible to cybersecurity threats, which could have an adverse effect on their business.There is no assurance that the projections stated herein will be realized.

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. Risks associated with investing in foreign securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less developed, less liquid, less regulated, and more volatile than the U.S. and developed foreign markets.

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.

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.

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.

 
Fund Cusip Information
30310B826 (Cash)
30310B834 (Reinvest)
30310B842 (Cash-Fee)
30310B859 (Reinvest-Fee)
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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.
First Trust Advisors L.P.
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