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 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.
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 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.