Defensive Equity Portfolio, Series 52
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. From 2019-
2027, it is projected that health care spending will grow at an average rate of 5.5% annually.
In addition, health care spending is anticipated to grow 0.8% 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 2018
to 19.4% by 2027.1
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 above-average
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.
|Not FDIC Insured Not Bank Guaranteed 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 spending trends.
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.
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
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 qualified plan.