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NextGen Communications and Technology, Series 4

A New Generation Of Possibilities

5G, or the fifth generation of wireless technology, is the new 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.

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.

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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, LLC and have been licensed for use for certain purposes by First Trust Portfolios L.P. The portfolio is based on the Indxx 5G & NextG Thematic Index and is not sponsored, endorsed, sold or promoted by Indxx, LLC, and Indxx, LLC makes no representation regarding the advisability of trading in such product.

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.

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.

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.

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 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 advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
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