Utilities Select Portfolio, Series 62
The utilities industry is regarded as a sector with the potential to provide investors with a high degree of stability while generating an above-average level of current income relative to other equities.
Should the overall market decline, utility stocks have historically tended to hold up better than stocks from other sectors. Because of these characteristics, utility company stocks are sometimes
considered an alternative to traditional fixed-income investments.
The utilities sector currently has the second highest dividend yield out of all sector categories in the S&P 500 Index, with a current yield of 3.01% as of January 6, 2022.1 Utility stocks may provide yields
that are attractive relative to bonds on a comparative basis.
1 S&P Dow Jones Indices
This unit investment trust seeks monthly income and above-average capital appreciation; however, there is no assurance the objectives 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 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 an investment that is concentrated in stocks in the utilities sector
involves additional risks, including limited diversification. The companies engaged in the utilities
sector are subject to certain risks, including price and supply fluctuations caused by international
politics, energy conservation, taxes, and other regulatory policies of various governments.
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.
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 COVID-19 global pandemic has caused significant volatility and declines in global financial markets, causing losses for investors. The development of vaccines has slowed the spread of the virus and allowed for the
resumption of “reasonably” normal business activity in the United States, although 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.