U.S. Energy Independence Portfolio, Series 16
The U.S. has a long history of depending primarily on imported energy, particularly petroleum. However, the growth in domestic crude oil and other liquids production has contributed to a
significant decline in imports. The decline in imports is due to growing domestic production as horizontal drilling and hydraulic fracturing unlock supplies from shale rocks deep underground. In fact,
according to a 2017 report released by the U.S. Energy Information Administration, the U.S. has the potential to become a net energy exporter by 2026. The U.S. has been a net importer since 1953
North American energy producers have achieved notable success by unlocking and developing the technologies necessary to deliver vast amounts of cheap oil and natural gas to the market. As a result, the U.S. might be on the verge of an industrial renaissance that could provide the spark that will help the country regain its economic footing, and at the same time significantly alter the industrial landscape of the country for many years to come.
The U.S. Energy Independence portfolio is a unit investment trust which invests in a fixed
portfolio of common stocks of companies within the energy industry. There are three areas within
the energy industry from which we select the majority of the portfolio:
Exploration & Production— These types of companies focus on finding and producing oil and gas.
Transportation— Companies in the rail and trucking business have the potential to benefit from the
transportation of fuels and equipment to facilitate the growing oil and gas business in North America.
Equipment & Services— These types of companies have the equipment, technology and
knowledge to extract the vast resources of energy reserves in North America.
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 stock market.
You should be aware that an investment that is concentrated in stocks in the energy sector involves additional risks, including limited diversification. The companies engaged in the energy sector are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. There can be no assurance the projections will be achieved.
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.
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.
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.