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.
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.
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
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
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.