Dow Jones Global Titans Portfolio, Series 31
In recent years, globalization has become a reality. The once distinct geographic, economic and cultural
lines have not only been blurred, but nearly erased. With this transformation, we have seen the
emergence of a new breed of mega-corporations–the Global Titans®.
The Dow Jones Global Titans Portfolio invests in 50 of the world’s largest and most-established blue-chip
companies included in the Dow Jones Global Titans 50TM Index. The portfolio provides exposure to companies
headquartered in countries around the world, aiming to reduce risk through country diversification.
Global diversification is considered one of the best ways of reducing risk by decreasing dependency on
the performance of a single economy. Because large multinational corporations frequently have
operations in multiple countries and generate revenues worldwide, they typically have a buffer against
regional economic downturns that other smaller and more centralized companies may not have. It is
important to note that diversification does not guarantee a profit or protect against loss.
Characteristics of Global Titans®
- To be identified as Global Titans®, the companies must be well established and have a broad
- They must be well known to global investors for either their long history of success or offer
widely used products or services.
- They must be market leaders in their industry with either a dominant position or a
- They must be among the largest of blue-chip companies in the global arena.
- All companies must be market and industry leaders globally, rather than just at the local level.
- All companies must have international market exposure, either selling or providing services,
outside of their home markets.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
This unit investment trust seeks above-average
capital appreciation; however, there is no
assurance the objective will be met.
The portfolio is invested in companies included
in the Dow Jones Global Titans 50TM Index as of
the business day prior to the portfolio's initial
date of deposit. However, it will not be adjusted
to reflect changes to the components of the
Index, if any, during the life of the portfolio.
You should consider the portfolio's investment objective, 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.
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.
Because the portfolio is concentrated in companies headquartered in Europe, the portfolio may present more risks than a portfolio which is broadly diversified over several regions.
On January 31, 2020, the United Kingdom officially departed the European Union (commonly referred to as “Brexit”). Brexit has led to volatility in global financial markets, in particular those of the United Kingdom and across
Europe, and may also lead to weakening in political, regulatory, consumer, corporate and financial confidence in the United Kingdom and Europe.
An investment in a portfolio which includes foreign securities should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, the lack of adequate financial information and
exchange control restrictions impacting foreign issuers. Certain of the securities in the portfolio are listed on a U.S. securities exchange and certain of the securities are traded only in foreign securities markets.
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 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.
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.
The Dow Jones Global Titans 50TM Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”)
and has been licensed for use by First Trust Portfolios L.P. Standard & Poor’s® and S&P® are registered
trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow
Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and
sublicensed for certain purposes by First Trust Portfolios L.P. The Dow Jones Global Titans Portfolio is not
sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such
parties make any representation regarding the advisability of investing in such product nor do they have any
liability for any errors, omissions, or interruptions of the Dow Jones Global Titans 50TM Index.