Mega-Cap Portfolio, Series 48
The Mega-Cap Portfolio invests in some of the largest companies in the world. These companies
are well-known blue chip companies that are widely regarded as leaders in their respective
industries. These companies, known for their quality products and services, are some of the most
successful in the world and have the potential to provide their stockholders with a greater degree
of stability and consistent performance over time.
Mega-cap companies typically have a notable presence throughout the world. Recently, more
opportunities have arisen outside of the United States, where populations are growing rapidly and
market penetration is lower. The United Nations anticipates that the current world population of
7.6 billion could potentially increase to 8.6 billion in 2030 driven by growth in developing countries.
According to the International Monetary Fund, world GDP growth is estimated to be 3.9% in 2018 and
3.9% in 2019.
The S&P 100 Index is a benchmark for mega-cap stock investing. The 50 largest constituents in the S&P
100 Index represent 79.02% of its total market capitalization as of March 9, 2018. Mega-cap stocks are
priced a bit more attractive than the broader market, in our opinion. The 2018 and 2019 year-end priceto-
earnings (P/E) ratio estimates for the S&P 100 Index were 17.56 and 15.91, respectively, on
March 12, 2018, compared to the S&P 500 Index’s 2018 and 2019 P/E estimates of 17.79 and 16.12,
according to Bloomberg. An investor cannot invest directly in an index.
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 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 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.
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.
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 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 cyber security.