S&P International Dividend Aristocrats Portfolio, 4th Quarter 2020 Series
The S&P International Dividend Aristocrats Portfolio invests in companies from the S&P Global Dividend
Aristocrats Index. The index consists of 100 companies from the S&P Global Broad Market Index that have
increased dividends or maintained stable dividends every year for at least 10 consecutive years, as
determined by the index provider.
Why Invest In Companies With A History Of Growing Dividends?
Quality | Companies that have been able to consistently grow their dividend have a tendency to be
higher quality compared to those of the broader market in terms of earnings quality and leverage, in our
opinion. A company’s ability to reliably increase its dividend for years, or even decades, can be an
indication of its financial strength or discipline.
Buffer Against Market Volatility | Dividend growth companies may be attractive to investors
looking for disciplined companies that can endure difficult market and economic environments. These
companies typically feature healthy balance sheets and consistent cash flows that provide plenty of
capital to effectively operate their business and fund a growing dividend.
Address The Potential Risks Associated With Rising Rates | Unlike high dividend yield
strategies which tend to be concentrated in companies from certain sectors that could come under pressure
during periods of rising rates, dividend growth strategies tend to be more diversified and able to provide
increased exposure to sectors that could become more desirable with improving economic activity and
This unit investment trust seeks above-average total return through a combination of
capital appreciation and dividend income; 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.
Certain securities held by the portfolio are issued by companies in the Asia Pacific region with a significant
percentage headquartered or incorporated in Japan, making the portfolio more susceptible to the economic,
market, regulatory, political, natural disasters and local risks of the Asia Pacific region. The region has
historically been highly dependent on global trade which creates a risk with this dependency on global
growth. The stock markets tend to have a larger prevalence of smaller companies that are inherently more
volatile and less liquid than larger companies.
Certain securities held by the portfolio are issued by companies in Europe. The United Kingdom vote to leave
the European Union and other recent rapid political and social change throughout Europe make the extent
and nature of future economic development in Europe and the effect on securities issued by European issuers
difficult to predict.
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.
On January 31, 2020, the United Kingdom officially departed the European Union (commonly referred to as
“Brexit”). Brexit has led to volatility in global financial markets, in particular those of the United Kingdom
and across Europe, and may also lead to weakening in political, regulatory, consumer, corporate and financial
confidence in the United Kingdom and Europe.
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.
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.
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.
The S&P Global Dividend Aristocrats Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by First Trust Portfolios L.P. Standard & Poor's® and S&P® are registered trademarks of
Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for
certain purposes by First Trust Portfolios L.P. The S&P International Dividend Aristocrats Portfolio is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make
any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P Global Dividend Aristocrats Index.