Nasdaq® Dividend Achievers 25 Portfolio, Series 28
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 39% of the 10.46% average annual total return on the S&P 500 Index,
from 1926 through 2021. 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.
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.
You should consider the portfolio's investment objective, 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.
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 the financials sector which involves additional risks, including limited diversification. 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.
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
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.
In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, 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 COVID-19 global pandemic has caused and may continue to cause significant volatility and declines in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue
to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging 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.
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.