Municipal Advantage Closed-End and ETF Portfolio, Series 44
Americans deal with a number of different taxes in their everyday lives, perhaps none more noticeable
than individual income taxes. In fact, individual income taxes comprise the largest component of
Americans' tax bill. Tax Freedom Day is the day on which Americans have earned enough money to pay
all federal, state and local taxes for the year. On average, Americans have to work a full 46 days in 2017
just to earn enough money to pay for these taxes.1
The trust seeks monthly income that is exempt
from federal income taxes by investing in a
well-diversified pool of closed-end funds and
exchange-traded funds that invest in taxexempt
municipal bonds. In addition, none of
the funds which are selected for the portfolio is
reporting the use of structural leverage. By not
employing structural leverage, the volatility of
the funds is reduced. However, certain or all of
these closed-end funds may elect to utilize
structural leverage in the future.
It is important to note that certain distributions paid by certain funds may
be subject to federal income taxes and may be subject to the alternative minimum
tax. The portfolio terminates approximately two years from the initial date
Investing in both closed-end funds and exchange-traded funds provides an efficient
way to achieve diversification across municipal bonds. The broad range of closedend
funds and exchange-traded funds in which the portfolio invests are further diversified
across hundreds of individual issues. It is important to note that diversification
does not guarantee a profit or protect against loss.
|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 associated with an investment in a portfolio of closed-end
funds and exchange-traded funds (ETFs).
Closed-end funds and ETFs are subject to various risks, including
management's ability to meet the fund's investment objective,
and to manage the fund's portfolio when the underlying
securities are redeemed or sold, during periods of market
turmoil and as investors' perceptions regarding the funds or
their underlying investments change. Shares of closed-end
funds and ETFs frequently trade at a discount to their net asset
value in the secondary market and the net asset value may
decrease. Based on current publicly available information, none
of the funds selected for the portfolio are reporting the use of
structural leverage. Structural leverage creates a systematic
level of additional investment exposure through a fund's
issuance of preferred shares or debt securities, or through
borrowing money. Funds which employ structural leverage are
more volatile than those that do not. However, certain or all of
these funds may have utilized structural leverage in the past and
may elect to utilize structural leverage in the future. Certain of
the funds may, however, report effective leverage, which results
from a fund's investment in derivative instruments that are
Certain of the closed-end funds and ETFs invest in high-yield securities or "junk" bonds. Investing in high-yield securities should be viewed as speculative and you should
review your ability to assume the risks associated with investments that utilize such bonds. High-yield securities are subject to numerous risks including
higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal. High-yield
security prices tend to fluctuate more than higher rated bonds and are affected by short-term credit developments to a greater degree.
Municipal bonds are subject to numerous risks, including higher interest rates,
economic recession, deterioration of the municipal bond market, possible downgrades
and defaults of interest and/or principal.
All of the funds invest in investment grade securities. Investment
grade securities are subject to numerous risks including higher interest
rates, economic recession, deterioration of the investment grade bond
market or investors' perception thereof, possible downgrades and
defaults of interest and/or principal.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity.
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.
The markets for credit instruments, including municipal securities, have experienced
periods of extreme illiquidity and volatility.
It is important to note that an investment can be made in the underlying
funds directly rather than through the trust. These direct investments can
be made without paying the trust's sales charge, operating expenses and
For a discussion of additional risks of investing in the trust see the "Risk
Factors" section of the prospectus.