Defensive Equity Portfolio, Series 48
Investors tend to gravitate toward less economically sensitive sectors when questions arise
regarding sustained economic growth. Because of their unique combination of global exposure
and historically defensive market characteristics, we believe that the consumer staples and health
care sectors represent an attractive opportunity for investors during times of uncertain economic
growth. The Defensive Equity Portfolio was designed with this in mind. It invests approximately
equally in stocks of companies in both the consumer staples and health care sectors.
The health care industry has been responsible for numerous discoveries that have led to new drugs and
products designed to better serve the masses, especially the aging population. These discoveries have
improved the quality of life and the life expectancy of millions. Over the period of 2016-2025, it is
projected that health care spending will grow at an average rate of 4.7% annually. In addition, health
care spending is anticipated to grow 1.2% faster than GDP per year over the same period; as a result, the
health care share of GDP is expected to increase from 17.8% in 2015 to 19.9% by 2025.1
Consumer staples consist of food, beverages, household goods and personal products that most
consumers use on a daily basis. Purchases of these products tend to be a relatively small portion
of most consumers' yearly income, which keeps demand stable. Because of this stability, sales and
earnings growth tend to remain fairly constant in up or down markets. We believe consumer
staples represents an attractive sector for investors due to its non-cyclical nature and significant
exposure to foreign demand.
This unit investment trust seeks aboveaverage
capital appreciation; however, there
is no assurance the objective will be met. The
portfolio terminates approximately two years
from the initial date of deposit.
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.
FDIC Insured, Not Bank Guaranteed and May Lose Value.
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 both the
consumer products and health care sectors which involves additional risks, including
limited diversification.The companies engaged in the consumer products industry
are subject to global competition, changing government regulations and trade
policies, currency fluctuations, and the financial and political risks inherent
in producing products for foreign markets.The companies engaged in the health
care sector are subject to fierce competition, high research and development
costs, governmental regulations, loss of patent protection, and changing consumer
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.