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Cybersecurity Portfolio, Series 12

"Cybersecurity" is security that is applied to computing devices such as computers and smartphones, as well as to networks and the Internet. Cybersecurity is used to protect computers, information and services from unauthorized users. The Cybersecurity Portfolio contains a diversified portfolio of companies that have been identified for their growing involvement in the cybersecurity industry.

With the heightened need for cybersecurity solutions, we believe this could be a favorable time to invest in companies involved in such areas as anti-virus solutions, data back-up and recovery, cloud-based systems, data encryption, data loss, enterprise security and homeland security.

Consider These Factors

  • Global cybersecurity spending is anticipated to exceed $1 trillion cumulatively • from 2017-2021. In 2004, the global cybersecurity market was worth $3.5 billion and was forecast to reach approximately $120 billion in 2017.1
  • Approximately 6 billion people are anticipated to be online – and need cyber protection – by 2022, up from over 2 billion in 2015.2 By 2030 the human attack surface, defined as the totality of all exploitable security holes within an organization that are created through the activities and vulnerabilities of personnel, could possibly equal the world's population which is anticipated to reach 8.5 billion.3
  • Data breaches increased 44.7% in 2017 over 2016 and hit an all-time record of 1,579, according to a report released by the Identity Theft Resource Center and CyberScout.
  • In fiscal year 2017, the White House proposed $62 million in funding to expand cybersecurity education across the country.43 In May 2017, President Trump issued a presidential executive order on strengthening the cybersecurity of federal networks and critical infrastructure.

2 Cybersecurity Ventures
2 Business Wire
3 whitehouse.gov

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.

You should be aware that the portfolio is concentrated in stocks in the information technology sector which involves additional risks, including limited diversification. The companies engaged in the technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their operating performance. There is no assurance that the projections stated herein will be realized.

Cybersecurity companies are subject to the risks set forth in "Information Technology" above. In addition to their cybersecurity business, certain of these companies may be involved in other businesses unrelated to cybersecurity. Negative performance by a company's other business operations may have a negative effect on a company's stock performance, even in situations in which they are deriving positive results from their cybersecurity business.

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.

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.

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.

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.

Fund Cusip Information
30308V677 (Cash)
30308V685 (Reinvest)
30308V693 (Cash-Fee)
30308V701 (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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