Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       


Innovative Technology, Series 44

Technologically innovative companies are those that create or use technology to create growth. Innovation from companies around the world continues to advance at a rapid pace. Cutting-edge technologies, such as 5G and cloud computing, have the potential to revitalize the economy and spark sustained growth.

We believe an important factor of an economy’s ability to foster innovation is the amount its companies spend on research and development (R&D). By this measure, as shown in the chart, the U.S. was projected to spend $679.4 billion in R&D in 2022. We believe that companies with a history of innovation that continue to effectively use R&D have the potential to outperform the overall market.

Funding Innovation - Reseach & Development Spending Forecast Chart


Access to Transforming Technologies

The Innovative Technology Portfolio provides access to companies in areas of the market we believe are driving innovation:

5G is the mobile wireless system that is expected to transform our world. 5G runs on a higher frequency than 4G LTE and promises dramatically faster upload and download speeds, reduced lag time and greater network capacity to handle a significantly higher number of connected devices.

Artificial Intelligence & Robotics
Artificial intelligence emphasizes the creation of intelligent machines that work and react like humans. Robotics is the branch of technology that deals with the design, construction, operation and application of robots.

Clean Energy
Clean energy is developed from renewable, zero-emissions sources, as well as energy that is stored through energy efficiency measures. As opposed to coal and oil, clean energy does not pollute the atmosphere. The clean energy industry generates hundreds of billions in economic activity and is anticipated to grow rapidly in the coming years.1

Cloud Computing
Offers more efficiency in computing by centralizing storage, memory, processing and bandwidth at a lower cost and with greater flexibility.

Cybersecurity is used to protect computers, information and services from unauthorized users and is applied to computing devices, as well as to networks and the Internet.

e-Commerce refers to the buying and selling of goods or services using the Internet. Worldwide retail e-commerce sales are anticipated to reach $6.33 trillion in 2024. By 2027, sales are anticipated to reach $7.96 trillion.2

Internet Of Things
The interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.

Social Networking
Social networking is changing the way businesses communicate with customers, generate new revenue streams and reduce operating costs.

1 U.S. Department of Energy
2 Insider Intelligence and eMarketer, January 2024

Portfolio Objective

This unit investment trust seeks above-average capital appreciation by investing in a fixed portfolio of common stocks of companies we believe are technologically innovative; 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 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 information technology sector which involves additional risks, including limited diversification. 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.

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 mid-cap companies is subject to additional risks, as the share prices of 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.

The ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease.

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, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Printer Friendly Page Printer Friendly Page
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.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.