Equity Income Select Portfolio, Series 62
The Equity Income Approach
Many investors are aware that stocks have historically provided higher average annual returns
over the long-term than bonds or money market securities. Still, there are those who don't feel
comfortable investing in the stock market with all of its potential volatility.
However, there are many approaches to equity investing, including more conservative ones that have the potential to reduce your exposure to market volatility. The objective of our approach is to achieve the potential for long-term growth of capital while seeking to reduce the extreme fluctuations that oftentimes cause investors to flee the market at the wrong time. The principal hallmarks of our approach are an emphasis on value and finding established companies with above-average dividend yields.
Dividends have had a significant impact on stock performance. Consider the historical effect dividends
have had on companies in the S&P 500 Index. According to Ibbotson Associates, dividends have provided
approximately 42% of the 9.99% average annual total return on the S&P 500 Index, from 1926 through
2018. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock
market performance. The index cannot be purchased directly by investors.
Investing in Value
The advantage of a value approach to selecting stocks is that it seeks to reduce
the risk of overpaying for a stock, thus potentially lowering the stock's downside
risk and increasing its upside potential. The Equity Income Select Portfolio
may be appropriate for investors seeking both income and the potential for long-term
capital growth by taking a value approach to the market.
This unit investment trust seeks above-average total return through a combination of capital appreciation and dividend income by investing in a fixed portfolio of equity securities; 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.
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.
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.
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.
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
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 cyber security.