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Digital World Leaders Strategy Portfolio, Series 1

The tasks we do on a daily basis continue to shift to digital sources. This phenomenon is occurring worldwide, not just here in the United States. In fact, a lot of countries outside of the United States are significantly further along in terms of their transition to a digital economy. Every day, the world population shifts more of its workload and daily tasks to online or computerized sources.

This change is broad based and affects any number of industries. Shopping, content dissemination, human interaction, and advertising have all seen significant transitions to online mediums over the last decade and we believe that we are still in the early stages of this digital transformation.

This shift in global behavior is typically dominated by large scale companies that tend to be first when bringing a new service or product to market. These companies tend to have the resources to evolve, transform, and acquire as technology changes and consumer demand alters. The majority of these companies provide comprehensive mega‐platforms that offer consumers the bulk of the services they require with one convenient payment. As this trend develops and consumers become accustomed, these companies may have a potential advantage over others in their industries.



Portfolio Objective

This unit investment trust seeks above-average capital appreciation; however, there is no assurance the objective will be met.


Not FDIC Insured • Not Bank Guaranteed • May Lose Value

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.

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 information 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.

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.

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.

Although this portfolio terminates in approximately 15 months, the strategy is long-term. Investors should consider their ability to pursue investing in successive portfolios, if available. 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.

First Trust Portfolios L.P. is the sponsor of this unit investment trust. Units of the trust are available exclusively through LPL Financial Corp.

 
The information in the prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
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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, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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