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NextGen Communications and Technology, Series 23

A New Generation Of Possibilities1

5G, or the fifth generation of wireless technology, 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. In 2018, 5G became a reality with some wireless carriers launching in certain test cities. All major U.S. carriers are working to build out 5G networks; however, full deployment may take several years.

1 Source: Digital Trends

5G Possibilities

Enhanced Mobile Broadband | Network improvements that may enable more efficient data transmission to potentially lower costs of data transmission to drive increased use of broadband applications on mobile networks.

Internet of Things | 5G is expected to build upon earlier IoT applications to enable significant increases in economies of scale to drive adoption and utilization across all economic sectors.

Fixed Wireless Access | Establishes a means of providing Internet access to homes using wireless mobile network technology rather than fixed lines.

Mission-Critical Control | A new market opportunity for wireless technology to provide ultra-reliable and secure connections to support applications such as driverless vehicles and health care where failure is not acceptable.

Number Of Mobile 5G Subscriptions Worldwide Chart

The Portfolio

The portfolio includes companies in the Indxx 5G & NextG Thematic Index as well as other companies that have devoted material resources or made material commitments to the use of 5G technology. The index is designed to track the performance of companies that are at the core of the research and development of the new 5G cellular technology.

Portfolio Objective

This unit investment trust seeks above-average capital appreciation; however, there is no assurance the objective will be met.

“Indxx” and “Indxx 5G & NextG Thematic Index” are trademarks of Indxx and have been licensed by First Trust Portfolios L.P. The NextGen Communications and Technology Portfolio is not sponsored, endorsed, sold or promoted by Indxx, and Indxx makes no representation regarding the advisability of investing in such a product. Indxx has no obligation to take the needs of First Trust or the unit holders of the product into consideration in determining, composing or calculating the Indxx 5G & NextG Thematic Index.

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 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.

The 5G communication network is an entirely new technology and risks associated with such technology may not emerge until it is widely used. Risks associated with 5G technology include, but are not limited to, device compatibility, geographical coverage, and new and changing government regulation. In addition, 5G technology is subject to risks associated with security and privacy protection as more devices are connecting to the network than ever before.

Some of the companies in the portfolio are engaged in other lines of business unrelated to 5G technology which could adversely affect their operating results.

Certain of the securities in the portfolio are issued by Real Estate Investment Trusts (REITs). Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

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 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.

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.


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.

Fund Cusip Information
30336H443 (Cash)
30336H450 (Reinvest)
30336H468 (Cash-Fee)
30336H476 (Reinvest-Fee)
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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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