Financials Select Portfolio, Series 77
The financials sector covers a wide range of industries including banks, investment banking,
brokerage, consumer finance and credit and insurance. Many of the firms included within
this sector offer services including traditional banking, insurance underwriting, securities
underwriting, investment brokerage and merchant banking.
Consider The Following
- During the financial crisis of 2008, many banks had weak, overly levered balance sheets which
contributed to the stock market crash. However, during the current COVID-19 pandemic, many
banks have strong, asset heavy and highly liquid balance sheets. During this crisis, banks may
have the opportunity to help the government in saving other sectors of the economy through
loans and lines of credit.
- We believe the trend that has perhaps had the most notable impact on this sector is industry
consolidation, and that improved efficiency, lower operating costs and increased volume are
a few of the benefits. We believe consolidation across the financials sector could continue
to play an important role as institutions react to regulatory mandates and competitive
opportunities both here in the U.S. and abroad.
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 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.
You should be aware that the portfolio is concentrated in stocks in the financials sector which
involves additional risks, including limited diversification. The companies engaged in the
financials sector are subject to the adverse effects of volatile interest rates, economic recession,
decreases in the availability of capital, increased competition from new entrants in the field, and
potential increased regulation.
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.
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.
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.
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.
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.