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Global Target 15 Portfolio, 3rd Quarter 2020 Series

The Strategy
Global Target 15 3Q '20 - Term 10/8/21 (Global Target 15 Portfolio) is a unit investment trust which invests in a fixed portfolio of stocks for approximately 15 months. The portfolio adheres to a strategy of investing in an approximately equally weighted portfolio of the five lowest-priced of the ten highest dividend-yielding stocks from each of the Dow Jones Industrial Average (DJIA), Hang Seng Index (HSI), and the Financial Times Industrial Ordinary Share Index (FT Index).

The strategy is based on these important elements:

  • Higher Dividend Yields - Blue-chip stocks with higher dividend yields may indicate that the stocks are out of favor or may be undervalued.
  • Industry Leaders - The companies included in the DJIA, HSI, and the FT Index are some of the most widely-held and well-capitalized companies in their markets.

It is important to note that the past performance of the strategy is hypothetical and it is not indicative of the future performance of the Global Target 15 Portfolio. Although this unit investment trust 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.

Portfolio Objective

This unit investment trust seeks above-average total return; however, there is no assurance the objective will be met.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Mountain Chart

Standard Deviations* Average Annual Total Returns*
Strategy Combined
Since 1987 17.37% 19.03% 9.93% 9.72%
25 years 16.59% 18.58% 8.15% 6.90%
20 years 16.26% 18.94% 4.95% 6.83%
15 years 15.80% 18.61% 7.47% 6.28%
10 years 13.83% 14.20% 8.66% 5.26%
5 years 13.00% 14.18% 7.45% 0.93%
3 years 12.82% 13.65% 11.53% 4.88%
*Through 12/31/19

Annual Total Returns
Year Combined

1987 11.26% 15.82%
1988 13.07% 20.64%
1989 20.75% 14.22%
1990 5.51% 0.39%
1991 27.17% 39.62%
1992 11.37% 23.94%
1993 53.50% 62.02%
1994 -7.93% -10.28%
1995 27.33% 11.20%
1996 28.98% 19.19%
1997 7.91% -9.02%
1998 9.21% 10.84%
1999 39.36% 5.89%
2000 -10.88% 1.96%
2001 -17.16% -1.31%
2002 -20.03% -14.54%
2003 32.11% 35.58%
2004 14.35% 28.94%
2005 7.62% 11.23%
2006 32.62% 39.73%
2007 17.27% 13.99%
2008 -44.23% -43.47%
2009 37.73% 48.94%
2010 11.94% 9.04%
2011 -7.55% -8.44%
2012 21.69% 24.89%
2013 22.96% 16.22%
2014 3.42% 10.05%
2015 0.74% -6.48%
2016 3.99% -2.92%
2017 28.94% 15.72%
2018 -11.34% -8.08%
2019 21.37% 8.46%
06/30/20 -18.42% -28.16%

Past performance is no guarantee of future results and the actual current performance of the portfolio may be lower or higher than the hypothetical performance of the strategy. Hypothetical returns for the strategy in certain years were significantly higher than the returns of the Combined Indices. Hypothetical strategy returns were the result of certain market factors and events which may not be replicated in the future. You can obtain performance information which is current through the most recent month-end by calling First Trust Portfolios L.P. at 1-800-621-1675 option 2. Investment return and principal value of the portfolio will fluctuate causing units of the portfolio, when redeemed, to be worth more or less than their original cost.

Simulated strategy returns are hypothetical, meaning that they do not represent actual trading, and, thus, may not reflect material economic and market factors, such as liquidity constraints, that may have had an impact on actual decision making. The hypothetical performance is the retroactive application of the strategy designed with the full benefit of hindsight. Strategy returns reflect a sales charge of 1.85% and estimated annual operating expenses of 0.448%, plus organization costs, but not taxes or commissions paid by the portfolio to purchase securities. Returns assume that all dividends received during a year are reinvested monthly (except the HSI Index from 12/31/86 through 12/31/92 and the FT Index commencing 8/1/19 which reflect price appreciation only). Returns for the foreign indices have been adjusted to take into account the effect of currency exchange rate fluctuations against the U.S. dollar. Actual portfolio performance will vary from that of investing in the strategy stocks because it may not be invested equally in these stocks and may not be fully invested at all times. It is important to note that the strategy may underperform the combined indices in certain years and may produce negative results.

The DJIA consists of U.S. stocks chosen by the editors of The Wall Street Journal as being representative of American industry. The HSI is an unmanaged index of stocks currently listed on the Stock Exchange of Hong Kong Ltd. The FT Index is an unmanaged index of stocks chosen by the editors of The Financial Times as being representative of the British industry and commerce. None of the indices can be purchased directly by investors.

Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.

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.

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 the portfolio is concentrated in stocks in both the energy and financials sectors which 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. 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. Risks associated with investing in foreign securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less liquid, less regulated and more volatile than the U.S. and developed foreign markets.

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.

Because the portfolio is concentrated in securities issued by companies headquartered in China and the United Kingdom, the portfolio may present more risks than a portfolio which is broadly diversified over several regions.

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.

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 recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December 2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.

The information in the prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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