Strategic Income Advantage Opportunity, Closed-End Portfolio, Series 17
The Multi-Sector Approach
The Strategic Income Advantage Opportunity Closed-End Portfolio seeks to provide a high rate of current
monthly income and to reduce some of the volatility typically associated with high-income investments.
To accomplish this, the portfolio is diversified across a broad range of closed-end funds that invest in U.S.
and foreign common stocks and taxable bonds. Because different sectors follow different cycles and
react differently to changes in global economies and interest rates, spreading assets across this spectrum
of closed-end funds has the potential to reduce the overall risk of the portfolio. In addition, based on
current publicly available information, none of the closed-end funds selected for the portfolio are
reporting the use of structural leverage.
Unlike open-end mutual funds, closed-end funds maintain a relatively
fixed pool of investment capital. This allows portfolio managers to better adhere to their investment
philosophies through greater flexibility and control. In addition, closed-end funds don’t have to manage
fund liquidity to meet potentially large redemptions.
The portfolio offers investors diversification by investing in a broad range of
closed-end funds that are further diversified across hundreds of individual securities. Diversification does
not guarantee a profit or protect against loss.
Closed-end funds are structured to generally provide a more
stable income stream than other managed investment products because they are not subjected to cash
inflows and outflows, which can dilute dividends over time. However, stable income cannot be assured.
This unit investment trust seeks a high rate of current monthly income, with capital appreciation as a
secondary objective. There is, however, no assurance that the objectives of the portfolio will be achieved.
| 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.
An investment in this unmanaged
unit investment trust should be made with an understanding
of the risks associated with an investment in a portfolio of
Closed-end funds are subject to various risks, including
management’s ability to meet the fund’s investment objective,
and to manage the fund’s portfolio when the underlying
securities are redeemed or sold, during periods of market
turmoil, and as investors’ perceptions regarding the funds or
their underlying investments change. Unlike open-end funds,
which trade at prices based on a current determination of the
fund’s net asset value, closed-end funds frequently trade at a
discount to their net asset value in the secondary market.
Based on current publicly available information, none of the
closed-end funds selected for the portfolio are reporting the
use of structural leverage. Structural leverage creates a
systematic level of additional investment exposure through a
closed-end fund's issuance of preferred shares or debt
securities, or through borrowing money. Closed-end funds
which employ structural leverage are more volatile than those
that do not. However, certain or all of these closed-end funds
may have utilized structural leverage in the past and may elect
to utilize structural leverage in the future.
Certain of the closed-end funds invest in common stocks.
Common stocks are subject to certain risks, 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.
Certain of the closed-end funds invest in convertible securities.
Convertible securities are bonds, preferred stocks and other
securities that pay a fixed rate of interest (or dividends) and
will repay principal at a fixed date in the future. However, these
securities may be converted into a specific number of common
stocks at a specified time. As such, an investment in convertible
securities entails some of the risks associated with both
common stocks and bonds.
Certain of the closed-end funds invest in high-yield securities or
“junk” bonds. Investing in high-yield securities should be viewed
as speculative and you should review your ability to assume the
risks associated with investments which utilize such securities.
High-yield securities are subject to numerous risks, including
higher interest rates, economic recession, deterioration of the
junk bond market, possible downgrades and defaults of interest
and/or principal. High-yield security prices tend to fluctuate more
than higher rated securities and are affected by short-term credit
developments to a greater degree.
Certain of the closed-end funds invest in investment grade
securities. Investment grade securities are subject to numerous
risks including higher interest rates, economic recession,
deterioration of the investment grade bond market or investors’
perception thereof, possible downgrades and defaults of
interest and/or principal.
Certain of the closed-end funds invest in options. Options are
subject to various risks including that their value may be
adversely affected if the market for the option becomes less
liquid or smaller. In addition, options will be affected by
changes in the value and dividend rates of the stock subject to
the option, an increase in interest rates, a change in the actual
and perceived volatility of the stock market and the common
stock and the remaining time to expiration.
Certain of the closed-end funds invest in U.S. Treasury obligations which are subject to numerous
risks including higher interest rates, economic recession and deterioration of the bond market or
investors’ perceptions thereof.
All of the closed-end funds invest in securities issued by foreign issuers. Such securities are subject
to certain risks, including currency and interest rate fluctuations, nationalization or other adverse
political or economic developments, lack of liquidity of certain foreign markets, withholding, the
lack of adequate financial information, and exchange control restrictions impacting foreign issuers.
Risks associated with investing in foreign securities may be more pronounced in emerging markets
where the securities markets are substantially smaller, less developed, less liquid, less regulated,
and more volatile than the U.S. and developed foreign markets.
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.
It is important to note that an investment can be made in the underlying funds directly rather
than through the trust. These direct investments can be made without paying the trust’s sales
charge, operating expenses and organizational costs.
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.
For a discussion of additional risks of investing in the trust see the “Risk Factors” section of
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.