Value Line® Target 25 Portfolio, 2nd Quarter 2019 Series
Value Line® Target 25 2Q '19 - Term 7/9/20 (Value Line®
Target 25 Portfolio) is a unit investment trust which invests in a fixed portfolio
of stocks for approximately 15 months. The stocks are selected by applying a
disciplined investment strategy which adheres to pre-determined factors. The
portfolio seeks above-average total return; however, there is no assurance the
objective will be met.
The strategy is based on these steps:
- We begin with the 100 stocks that Value Line® currently
gives a #1 ranking for TimelinessTM (stocks of financial
companies, limited partnerships and companies whose
shares are not listed on a U.S. exchange are not eligible for
inclusion in the Value Line® Target 25 Strategy). Value
Line® ranks approximately 1,700 stocks, only 100 of which
are given their #1 ranking for TimelinessTM. They base their
rankings on a long-term trend of earnings, prices, recent
earnings, price momentum, and earnings surprises.
- We then rank the Value Line® #1 stocks for TimelinessTM
based on their 12-month and 6-month price appreciation, return on assets,
and price to cash flow.
- The 25 eligible stocks with the best overall ranking on
the four factors are selected by the sponsor for the
portfolio. The stocks are weighted by market
capitalization subject to a minimum weighting of
approximately 1% and a maximum weighting of
If this strategy had been applied since 1985, investors
would have realized higher total returns than by investing
in the S&P 500 Index. It is important to note that the past
performance of the strategy is hypothetical and it is not
indicative of the future performance of the Value Line®
Target 25 Portfolio. Although this unit investment trust
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.
This unit investment trust seeks above-average total return;
however, there is no assurance the objective will be met.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
| Standard Deviations*
|| Average Annual Total Returns*
|Annual Total Returns
Past performance is no guarantee of future results and the actual current
performance of the portfolio may be lower or higher than the hypothetical performance
of the strategy. Hypothetical returns for the strategy in certain years were
significantly higher than the returns of the S&P 500 Index. Hypothetical strategy
returns were the result of certain market factors and events which may not be
replicated in the future. You can obtain performance information which is current
through the most recent month-end by calling First Trust Portfolios L.P. at
1-800-621-1675 option 2. Investment return and principal value of the portfolio
will fluctuate causing units of the portfolio, when redeemed, to be worth more
or less than their original cost.
Simulated strategy returns are hypothetical, meaning that they do not
represent actual trading, and, thus, may not reflect material economic
and market factors, such as liquidity constraints, that may have had an
impact on actual decision making. The hypothetical performance is the
retroactive application of the strategy designed with the full benefit of
hindsight. Strategy returns reflect a sales charge of 1.85% in the first year
and estimated annual operating expenses of 0.172%, plus organization
costs, but not taxes or commissions paid by the portfolio to purchase
securities. Returns assume that all dividends received during a year are
reinvested monthly. Actual portfolio performance will vary from that of
investing in the strategy stocks because it may not be weighted the same
as the strategy stocks and may not be fully invested at all times. It is
important to note that the strategy may underperform the S&P 500 Index
in certain years and may produce negative results.
The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap
U.S. stock market performance.The index cannot be purchased directly by investors.
Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.
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. In addition, the portfolio is heavily weighted in only a few stocks, making it more volatile than an equally weighted portfolio.
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.
You should be aware that the portfolio is concentrated in stocks in both the consumer products and
health care sectors 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. The companies engaged in the health care
sector are subject to fierce competition, high research and development costs, governmental
regulations, loss of patent protection, and changing consumer spending trends. In addition, the
Health Care and Education Affordability Reconciliation Act of 2010 has had and will continue to
have a significant impact on the health care sector.
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.
One of the securities held by the trust is issued by a REIT. Companies involved in the real estate
industry are subject to changes in the real estate market, vacancy rates and competition, volatile
interest rates and economic recession.
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.
“Value Line”, “The Value Line Investment Survey”, and “Timeliness” are
trademarks or registered trademarks of Value Line, Inc. (“Value Line”)
and have been licensed for use for certain purposes by First Trust
Portfolios L.P. and First Trust Advisors L.P. This product is not sponsored,
endorsed, recommended, sold or promoted by Value Line and Value
Line makes no representation regarding the advisability of investing in
products utilizing such strategy. First Trust Portfolios L.P. and First Trust
Advisors L.P. are not affiliated with any Value Line company.