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REIT Growth & Income Select, Series 68

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. Over the last several decades, the real estate sector has grown in size and importance to the economy. The total equity market capitalization of listed U.S. Equity REITs has grown from $5.55 billion in 1990 to approximately $1.28 trillion as of March 2024.1

Portfolio Objectives

This unit investment trust seeks dividend income and capital appreciation; however, there is no assurance the objectives will be met.

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. Diversification does not guarantee a profit or protect against a loss.

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.

1,2 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 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 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.

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
30335K603 (Cash)
30335K611 (Reinvest)
30335K629 (Cash-Fee)
30335K637 (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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