Equity Income Opportunity Portfolio, Series 23
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
often times 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 39% of the 10.46% average annual total return on the
S&P 500 Index, from 1926 through 2021. 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
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 Opportunity 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 objectives, risks, and
charges and expenses carefully before investing. Contact your financial professional
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.
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.
An investment in a portfolio containing mid-cap companies is subject to additional risks, as the share prices of 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.
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.
In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.
The COVID-19 global pandemic has caused and may continue to cause significant volatility and declines in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue
to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.
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.