Energy Select Portfolio, Series 78
Energy is the vital force powering business, manufacturing, and the transportation of goods and services to serve the world’s economies. Energy supply and demand plays an increasingly vital role in
worldwide economic output. The challenge of developing clean fuel initiatives to make the most of traditional fossil fuels and investing in cutting edge research to identify new energy sources, like
hydrogen fuels and fusion technologies, becomes increasingly important.
Consider The Following
- The energy sector is still down 62.77% from it’s all time high and down 36.47% year-to-date
as of November 30, 2020, which could represent an opportunity for long-term investing.1
- Because of the COVID-19 pandemic, policy makers stepped in quickly and responded with
radical steps to tackle the oil market crisis. These steps included cutting output to stabilize the
oil market and reducing the amount of supply.
- According to the Energy Information Administration, the global consumption of petroleum
and liquid fuels will average 92.4 million barrels per day for 2020, down by 8.8 million barrels
per day from 2019. They anticipate an increase of 5.8 million barrels per day in 2021.
- The shale industry’s rapid growth over the last decade put the American oil industry ahead of
the rest of the world, surpassing Saudi Arabia and Russia.22
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 objectives, risks, and
charges and expenses carefully before investing. Contact your financial professional
or call First Trust Portfolios, L.P. at the number listed below 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 an investment that is concentrated in stocks in the energy sector involves additional risks, including limited diversification. The
companies engaged in the energy sector are subject to certain risks, including price and supply fluctuations caused by international politics, energy
conservation, taxes, price controls, and other regulatory policies of various governments. Falling oil and gas prices may negatively impact the profitability
and business prospects of certain energy companies.
An investment in foreign equities should be made with an
understanding of the additional risks involved with foreign
issuers, such as currency fluctuations, political risk, withholding,
the lack of adequate financial information, and exchange control
restrictions impacting foreign issuers.
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.
Large capitalization companies may grow at a slower rate than the overall market.
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 COVID-19 global pandemic has resulted in major disruptions to economies and markets around the world. Financial markets have experienced extreme volatility and severe losses, negatively impacting global economic
growth prospects. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty and may exacerbate other political, social and economic risks.
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.