NextGen Communications and Technology Portfolio, Series 1
A New Generation Of Possibilities
5G, or the fifth generation of wireless technology, is the new mobile wireless system that is expected to
transform our world. 5G runs on a higher frequency than 4G LTE and promises dramatically faster upload
and download speeds, reduced lag time and greater network capacity to handle a significantly higher
number of connected devices. In 2018, 5G became a reality with some wireless carriers launching in
certain test cities. All major U.S. carriers are working to build out 5G networks; however, full deployment
may take several years.
Source: Digital Trends
- ENHANCED MOBILE BROADBAND | Network improvements that may enable more efficient data
transmission to potentially lower costs of data transmission to drive increased use of broadband
applications on mobile networks.
- INTERNET OF THINGS | 5G is expected to build upon earlier IoT applications to enable significant
increases in economies of scale to drive adoption and utilization across all economic sectors.
- FIXED WIRELESS ACCESS | Establishes a means of providing Internet access to homes using
wireless mobile network technology rather than fixed lines.
- MISSION-CRITICAL CONTROL | A new market opportunity for wireless technology to provide
ultra-reliable and secure connections to support applications such as driverless vehicles and health care
where failure is not acceptable.
The portfolio will include companies in the Indxx 5G & NextG Thematic Index as well as other companies that have
devoted material resources or made material commitments to the use of 5G technology. The index is
designed to track the performance of companies that are at the core of the research and development of
the new 5G cellular technology.
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met.
“Indxx” and “Indxx 5G & NextG Thematic Index” are trademarks of Indxx, LLC and have been licensed for use for
certain purposes by First Trust Advisors L.P. The portfolio is based on the Indxx Indxx 5G & NextG Thematic Index and is not
sponsored, endorsed, sold or promoted by Indxx, LLC, and Indxx, LLC makes no representation regarding
the advisability of trading in such product.
| 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.
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
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 Internetrelated,
may experience extreme price and
volume fluctuations that are often
unrelated to their operating performance.
The 5G communication network is an
entirely new technology and risks
associated with such technology may not
emerge until it is widely used. Risks
associated with 5G technology include, but
are not limited to, device compatibility,
geographical coverage, and new and
changing government regulation. In
addition, 5G technology is subject to risks
associated with security and privacy
protection as more devices are connecting
to the network than ever before.
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.
Certain of the securities in the portfolio
are issued by Real Estate Investment
Trusts (REITs). 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.
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.
Although this portfolio 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.
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.