Nasdaq® Dividend Achievers 25 Portfolio, Series 13
The Nasdaq® Dividend Achievers 25 Portfolio is a unit investment trust which is based on the Nasdaq US Broad Dividend Achievers IndexTM. The index is designed to measure the performance of companies with at least ten consecutive years of increasing annual regular dividend payments. The index includes many companies that are familiar household names and has exposure to all major sectors of the market.
Dividends have historically been one of the few constants in the world of investing, contributing nearly half
of the stock market’s total returns. According to Ibbotson Associates, dividends have provided approximately
41% of the 10.16% average annual total return on the S&P 500 Index, from 1926 through 2017. The S&P
500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.
The index cannot be purchased directly by investors. Past performance is no guarantee of future results.
The Nasdaq® Dividend Achievers 25 Portfolio invests in companies from the index using a selection process that seeks to identify companies with the potential to provide above-average total return by favoring dividend growth over high yields.
Portfolio Selection Process
Identify the Universe
We begin with the companies listed in the Nasdaq US Broad
Dividend Achievers IndexTM.
Screen the Universe
We then evaluate companies based on multiple factors. These
factors are designed to identify companies with dividend growth potential.
Select the Portfolio
The final step is to select the 25 highest-yielding stocks for the portfolio. The stocks are approximately equally weighted within the portfolio.
*Excluding limited partnerships and limited liability companies.
**Subject to a maximum of 30% from any one of the major GICS market sectors. For purposes of this
restriction, consumer discretionary and consumer staples are considered separate sectors.
This unit investment trust seeks above-average total return through a combination
of capital appreciation and dividend income; 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 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.
Nasdaq® and NASDAQ US Broad Dividend Achievers IndexTM are registered trademarks of Nasdaq, Inc.
(which with its affiliates are the Corporations) and are licensed for use by First Trust Portfolios L.P. The
portfolio has not been passed on by the Corporations as to its legality or suitability. The portfolio is not
issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES
AND BEAR NO LIABILITY WITH RESPECT TO THE PORTFOLIO.
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 both the consumer products
and financials sectors which involves additional risks, including limited diversification. The
companies engaged in the consumer products industry are subject to global competition,
changing government regulations and trade policies, currency fluctuations, and the financial
and political risks inherent in producing products for foreign markets. The companies engaged in
the financials sector are subject to the adverse effects of volatile interest rates, economic
recession, decreases in the availability of capital, increased competition from new entrants in the
field, and potential increased regulation.
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.
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.
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.
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.