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REIT Growth & Income Select, Series 41

A Real Estate Investment Trust (REIT) is a company that buys, develops and/or manages income-producing real estate such as apartments, shopping centers, offices and warehouses. In short, a REIT is a corporation that pools the capital of many investors to purchase one or more forms of real estate. In September 2016, equity REITs moved from the Financials sector of the Global Industry Classification Standard (GICS®) to a new, stand-alone Real Estate sector. This change reflected the growth in size and importance of real estate in the economy. Over the past 25 years, the total equity market capitalization of listed U.S. Equity REITs has grown from $9 billion to over $1 trillion.1 Going forward, we believe the real estate sector may benefit from fiscal stimulus, possible regulatory changes, economic growth, job growth and prospects for higher corporate profits.

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Portfolio Objectives

This unit investment trust seeks dividend income and capital appreciation; however, there is no assurance the objectives will be met. The portfolio terminates approximately two years from the initial date of deposit.

Investing in REITs

Income- REITs are currently required to distribute at least 90% of their income annually as dividends to shareholders. Historically, this has made REITs a significantly higher source of income versus other equities and competitive with traditional fixed income investments. It should be noted that dividends paid by REITs are generally not eligible for the reduced tax rates for qualified dividend income.

Diversification - The portfolio invests in a number of REITs offering diversification among properties and regions.This type of diversification may help to reduce some of the fluctuations in the real estate market as a result of economic downturns or changes in supply and demand in a specific region or type of property.

Asset Allocation - A study by Ibbotson Associates found that adding REITs to a portfolio of stocks, bonds, and cash is a key factor for portfolio diversification.2 We believe this makes a compelling case for the use of REITs to reduce risks in a variety of investment portfolios.

Liquidity- Compared to traditional, privately-held real estate, which may be difficult to sell, the REITs in which this portfolio invests are traded on major stock exchanges, making them highly liquid. Additionally, units of the portfolio may be redeemed on any business day at the redemption price.

Skilled Management- REIT investors also gain the advantage of skilled management since REIT management teams tend to be experts within their specific type of property or geographic location.

1 REIT.com
2 NAREIT

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 REITs which involves additional risks, including limited diversification. 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 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.

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.

 
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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