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Election Portfolio, Series 9

In November 2016, the United States elected our 45th President. While most voters focus on the current state of affairs when casting their ballots in presidential elections, equity investors tend to concentrate on the impact the election will have on fiscal and monetary policy that can influence future economic growth. Since the 2016 election, we’ve seen a series of policy changes including deregulation and the passing of the most far-reaching tax reform since the 1980s. Because of the policies that have already been put in place, the IMF continues to anticipate economic growth to reach 2.9% in 2018 compared to 1.6% in 2016 and 2.2% in 2017.

As we reach the half way point of the President’s term, the country completed the mid-term elections on November 6th and the results produced a divided government with a Republican president, Republican majority U.S. Senate and Democrat majority U.S. House of Representatives. This shift in the balance of power in Congress could affect market performance and which sectors could have strong relative value and growth potential. Historically, looking back 60 years to the election of 1958, the S&P 500 Index has performed better during periods of divided government.1While markets have been volatile leading up to the mid-term elections, uncertainty should start to fade as corporations have a better idea of what to expect from Congress in the coming two years.

1 Investor’s Business Daily

Divided Government

We anticipate the following sectors have the potential to perform well under the current divided government now that the Democrats have won the House.

  • Banks
  • Biotechnology
  • Communication Services
  • Health Care
  • Information Technology
  • U.S. Infrastructure

Portfolio Objective

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

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

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 an investment that is concentrated in stocks in the health care sector involves additional risks, including limited diversification. 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. In addition, the Health Care and Education Affordability Reconciliation Act of 2010 has had and will continue to have a significant impact on the health care sector.

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.

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.

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.

 
Fund Cusip Information
30310E648 (Cash)
30310E655 (Reinvest)
30310E663 (Cash-Fee)
30310E671 (Reinvest-Fee)
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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 and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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