Cybersecurity Portfolio, Series 21
"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
- The global cybersecurity market is anticipated to reach $244.4 billion by 2024 from a market
size of $132.8 billion in 2018.1
- 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
- In 2019, the total number of U.S. data breaches reached 1,473, an increase of 17% over 2018.4
- In fiscal year 2020, the White House proposed more than $9.6 billion to advance the cyber
missions of the Department of Defense.5
This unit investment trust seeks above-average capital appreciation; however, there is no
assurance the objective will be met.
1,3 Security Sales & Integration
2 Cybersecurity Ventures
4 Identity Theft Resource Center and CyberScout
| 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 professional
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.
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 “Information Technology” risks listed previously. 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
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 available information.
Large capitalization companies may grow at a slower rate than the overall market.
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.
The recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December 2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to disrupt
manufacturing, supply chains and sales in affected areas and negatively impact global economic growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global financial markets, which
have caused losses for investors. The impact of the COVID-19 outbreak may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.
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.
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