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Health, Power, & Robo Tech, Series 1

The aging population is pushing health care demand sky-high, and artificial intelligence (AI) and robotics are becoming a crucial tool to meet that demand. However, along with the rise in AI comes increased energy demand. This unit investment trust (UIT) invests in three areas of the market—health care, energy, and information technology. These three areas address critical human needs, drive technological innovation, and shape the future of work and societal well-being.

Health Care

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. From 2023-2032, it is projected that health care spending will grow at an average rate of 5.6% annually.1

  • Currently, there are approximately 8,000 medicines in development around the world. Of these, nearly 70% have the potential to be first-in-class treatments, which represents an entirely new approach to treating a disease.2

  • According to Statista, the AI healthcare market was valued at $11 billion in 2021 but is anticipated to reach $187 billion by 2030.

Power

Demand for electricity is likely to soar over the next decade as a convergence of new, powerhungry innovations reach critical mass, which may require massive investments to modernize and expand power grids within the U.S and around the world.

  • The smart grid is a renovation of the electricity supply chain, which is designed to modernize how we produce, transport, use and store energy. It may transform the current electric power grid just as the internet revolutionized communications.

  • Electricity demand is increasing about twice as fast as overall energy use and is anticipated to increase by more than half between 2022 and 2040.3 The surge in demand is driven partly by data centers for artificial intelligence and high performance computing. Nuclear energy is the only clean source capable of continuous, around-the-clock operations. It is one of the few options that can ensure grid reliability at the scale required.4,5

Robo Tech

AI and robotics are extending human capabilities and revolutionizing business. AI allows machines to complete various human tasks, such as driving automobiles, providing virtual assistance and playing games. Robots continue to replace and enhance integral processes across multiple industries. Together, AI and robotics are advancing the way we live and work. They are disrupting a range of industries and have the potential to address problems caused by an aging workforce and rising labor costs while making the workforce more efficient and productive.

  • AI and robots are tools that help build things better, faster, safer, and smarter. Worldwide consumer robot unit shipments are anticipated to reach 65.9 million units annually by 2025, up from 15.4 million units annually in 2018.6

  • The global industrial robotics market was valued at $55.2 billion in 2023 and is projected to reach approximately $163.9 billion by 2033, growing at a compound annual growth rate (CAGR) of approximately 11.5% from 2024-2033.7

1 CMS.gov
2 PhRMA
3 World Nuclear Association
4 NEI - Nuclear Fuel
5 Office of Nuclear Energy - U.S. Department of Energy
6 Tractica
7 Market.US

Portfolio Objectives

This UIT seeks above-average capital appreciation; however, there is no assurance the objective will be met.

Global Humanoid Healthcare Assistive Robot Market chart



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 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.

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 the health care, industrials and information technology sectors 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. In addition, health crises, such as a pandemic outbreak, can severely impact the health care industry in particular. The companies engaged in the industrials sector are subject to certain risks, including a deterioration in the general state of the economy, intense competition, domestic and international politics, excess capacity and changing spending trends. The companies engaged in the information technology sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their operating performance.

Smart grid companies can be negatively affected by high costs of research and development, high capital requirements for implementation, government regulations, limited ability of industrial and utility companies to implement new technologies and uncertainty of the ability of new products to penetrate established industries.

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 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.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.

A public health crisis, and the ensuing policies enacted by governments and central banks in response, could cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.

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.

 
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.

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2025 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

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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.
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