Health Care Select Portfolio, Series 56
The health care industry has been responsible for several discoveries that have led to new drugs and products designed to better serve the masses, especially the aging population. These discoveries
have improved the quality of life and the life expectancy of millions. More recent research, relating to areas such as genomics, is providing avenues of growth never before imagined. Debilitating
diseases, previously untreatable, are now often manageable or even curable. Over the period of 2018-2027, it is projected that health care spending will grow at an average rate of 5.5% annually. In
addition, health care spending is anticipated to grow 0.8% faster than GDP per year over the same period; as a result, the health care share of GDP is expected to increase from 17.9% in 2017 to
19.4% by 2027.1
Medical Products & Supplies
In 1988, approximately 20% of all surgeries were performed on an outpatient basis, compared to approximately 60-70% today.2 Technological advances made to medical devices have helped fuel this trend. New devices have been developed that are less invasive, often eliminating the need for extensive inpatient hospital stays. We believe that further advances may also serve to keep costs down and create demand for medical products, devices and supplies.
Biotechnology & Pharmaceuticals
A variety of new and improved medicines have expanded the options for doctors and patients, allowing previously untreatable or poorly treated illnesses to be treated effectively and giving patients and physicians new opportunities to prevent and manage disease. Managed care providers encourage the use of pharmaceuticals because they are a relatively inexpensive and less invasive form of treatment.
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 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.
You should be aware that the portfolio is concentrated in stocks
in the health care sector which involves additional risks,
including limited diversification. The companies engaged in the
health care sector are subject to fierce competition, high
research and development costs, governmental regulations, loss
of patent protection, and changing consumer spending trends.
An investment in foreign equities should be made with an
understanding of the additional risks involved with foreign
issuers, such as currency fluctuations, political risk, 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
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 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