Technology Dividend, Series 46

Historically, technology companies were recognized for their growth potential and paid little in dividends. During the Internet build-out phase of the 1990s, many companies in the sector were new businesses, committing capital to research and development and merger and acquisition efforts. Since then, technology has evolved to become an indispensable part of our lives. Internet usage continues to grow at a rapid pace. Demand is rising for products such as wireless connectivity, semiconductors, and cloud computing.

Today, many technology companies have matured into companies with strong balance sheets and financial flexibility and are paying dividends, while continuing to reinvest in their businesses. We believe future growth potential combined with dividend payouts make technology an attractive sector.

Information Technology Dividend Contribution
(2003-2022)

Information technology companies in the S&P 500 Index are now the largest contributor of dividends from the index. In 2022, technology companies accounted for 19.19% of the dividends paid by the S&P 500 Index, having grown significantly from contributing only 4.08% in 2003.

Portfolio Objective

This unit investment trust seeks above-average total return by investing in dividend-paying companies in the technology sector; however, there is no assurance the objective will be met.

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 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.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.

An investment in a portfolio containing mid-cap companies is subject to additional risks, as the share prices of 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.

In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, 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 COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging 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.