Technology Select Portfolio, Series 78
From cell phones to MRIs, innumerable products and services, as well as the people that use them each
day, rely in some way on technology. Powering this technology in our everyday lives are computer,
software, networking, semiconductor and communication companies.
Consider These Factors
- Gartner forecasts worldwide IT spending to total approximately $3.9 trillion in 2020, with the enterprise software segment spending nearly $503 billion, a 10.5% increase from 2019.
- Cloud computing allows companies to use software, applications and other services on a pay-per-use basis. According to Gartner, the worldwide public cloud services market is expected to grow 17%
in 2020 to total $266.4 billion, up from $227.8 billion in 2019. By 2022, Gartner predicts that worldwide public cloud service revenue will potentially reach $354.6 billion.
- According to the World Semiconductor Trade Statistics, in 2020 and 2021 the worldwide
semiconductor market is anticipated to increase by 3.3% and 6.2%, respectively.
This unit investment trust seeks above-average capital appreciation by investing in
companies in the technology sector; however, there is no assurance the objective will
|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.
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 information technology sector which involves additional risks, including limited diversification. The companies engaged in the information technology
sector are subject to fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are Internet-related,
may experience extreme price and volume fluctuations that are often unrelated to their operating performance. There is no assurance that the projections stated herein will be realized.
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.
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.
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 cybersecurity.
The recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December
2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to
disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic
growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global
financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short
term or may last for an extended period of time, and in either case could result in a substantial economic
downturn or recession.
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.