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Innovative Health Care Portfolio, Series 6

Innovation is important to the success of any business, but may be most profound in the health care sector with the potential to improve the quality of life and life expectancy of millions. Innovation in the health care sector is accelerating. Advances include cutting edge gene and cell therapies, the use of artificial intelligence (AI), machine learning tools, the application of database systems, and other innovations from outside the industry. We believe transformative shifts within the health care sector are creating opportunities for companies that embrace innovation in today’s new era of technological and medical advances.

As researchers and companies work to apply the latest advances in lifesaving medical drugs and devices, the government has been working to streamline its drug and device approval process. According to the U.S. Food & Drug Administration (FDA), in 2019, the FDA approved 48 new drugs. Together, over the past three years, drug approvals represent drug companies’ most productive period in more than two decades.1 In addition, as of 9/4/2020, the FDA approved 40 new drugs,
none of which were COVID-19-related. Statistics show a need for more efficiency in the health
care system to prioritize early diagnoses and prevention of diseases:

Aging population – In 2019, there were 703 million persons aged 65 years or over globally. This number is anticipated to double to 1.5 billion by 2050, according to the United Nations Department of Economic and Social Affairs.

Prevalence of chronic disease – Cancer, heart disease and diabetes are the leading causes of death and disability in the U.S., according to the Center for Disease Control.

The health care industry is undergoing fundamental transformations as a shift toward an aging population, prevalence of chronic diseases and advances in innovative technologies continue to increase health care demand and expenditures. Global health care expenditures are projected to increase by 5.4% annually from $7.7 trillion in 2017 to $10.1 trillion in 2022.


Access To Transforming Themes

The Innovative Health Care Portfolio provides access to health care companies that are involved in areas that we believe are driving innovation:

Robotic Surgery | Surgical robots are relied upon to assist human surgeons, aiding in procedures that require great precision. The global market for surgical robots is expected to experience a compound annual growth rate of 13%, from 2019-2027, according to Transparency Market Research.

Rare Disease | According to the World Economic Forum, approximately 7,000 rare diseases have been identified and affect approximately 475 million people worldwide2, but the vast majority of them have no specific treatment.

Gene and Cell Therapy | The first gene therapy treatment was approved by the FDA in August 2017. In 2020, the FDA has stated that it has more than 900 active investigational new drug applications on file and anticipates many more approvals in the coming years.

Electronic Health Care | The electronic health records (EHR) market is anticipated to grow from $30 billion in 2020 to $40 billion by 2025, according to Research And Markets. EHR solutions may play a key role in providing value based personalized health care and seek to provide the best outcome for patients by providing more effective clinical workflow, support for clinical decision making, patient safety, and ensuring fewer medical errors.

Infectious Disease | Infectious diseases are caused by pathogenic microorganisms, such as bacteria, viruses, parasites or fungi; the diseases can be spread, directly or indirectly, from one person to another. Worldwide, the leading infectious disease is tuberculosis (TB) which is estimated to kill someone approximately every 21 seconds – about 1.5 million in 2018 alone.3 Investment in infectious disease has the potential to prevent needless deaths, dramatically reduce health care costs and improve the quality of life for millions.

Oncology | The global oncology market is currently valued at $100 billion and is anticipated to grow with a compound annual growth rate of 7.6% from 2020-2028, according to Quince Market Insights.

Advanced Life Sciences | The combination of technology and health care, or life science, is a broad and growing sector of the economy. According to a report from Cushman & Wakefield, the life science industry is one of the fastest-growing sectors of the U.S. economy, with many recession-proof characteristics.

1  Chemical & Engineering News
2  TB Alliance

Portfolio Objective

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.

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 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 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 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 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.

Although this portfolio 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 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.
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