Equity Income Opportunity Portfolio, Series 5
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
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 41% of the 10.16% average annual total return on the S&P 500 Index, from 1926 through
2017. 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 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 and holding them 1for a period of approximately five years
from the portfolio's initial date of deposit; 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.
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.
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.