Strategic International Opportunity Portfolio, Series 5
Diversification is one of the principal advantages of global investing. Because global markets often
follow different cycles than the U.S. markets, investing globally may provide gains when domestic
markets are flat or declining. Consider that in 17 of the 35 calendar years from 1983 to 2017, the MSCI
World ex USA Index outperformed the S&P 500 Index. It is important to note that diversification does
not guarantee a profit or protect against loss.
Our goal with the Strategic International Opportunity Portfolio is to provide a convenient way to add an
international dimension to your investment portfolio, significantly expanding your investment
opportunities and potentially enhancing your overall return.
Portfolio Selection Process
This unit investment trust invests in a diversified portfolio of common stocks from four distinct
segments of the international market. Each segment contains stocks selected specifically for that
component of the allocation. Our stock selection process evaluates companies based on multiple factors.
These factors are designed to identify those stocks which exhibit strong fundamental characteristics and
to eliminate those that do not meet our investment criteria. Through our selection process we seek to
find the companies in each segment that we believe have the best prospects for above-average capital
appreciation. The four segments are weighted based on the allocation below.
This unit investment trust seeks above-average capital appreciation; 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 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 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
You should be aware that the portfolio is
concentrated in stocks in the consumer
products sector 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.
Because the portfolio is concentrated in
companies headquartered in Europe, the
portfolio may present more risks than a
portfolio which is broadly diversified over
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
All of the securities held by the trusts are
issued by a foreign issuers. 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. Risks associated with
investing in foreign securities may be
more pronounced in emerging markets
where the securities markets are
substantially smaller, 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.
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.
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.