Financials Opportunity Portfolio, Series 5
The financials sector covers a wide range of industries including banks, investment banking, brokerage, consumer finance and credit and insurance. Many of the firms included within this sector offer
services including traditional banking, insurance underwriting, securities underwriting, investment brokerage and merchant banking.
Earnings have been steadily rising since the 2008 global financial crisis. Bloomberg’s 2019 and 2020 consensus estimated earnings growth rates for the S&P 500 Financials Index were 6.80% and
9.90%, respectively, as of 2/22/19.
We believe the trend that has perhaps had the most notable impact on this sector is industry
consolidation, and that improved efficiency, lower operating costs and increased volume are a few of the
benefits. We believe consolidation across the financials sector could continue to play an important role as
institutions react to regulatory mandates and competitive opportunities both here in the U.S. and abroad.
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 objective, 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 the portfolio is concentrated in stocks in the financials sector which
involves additional risks, including limited diversification. The companies engaged in the
financials sector are subject to the adverse effects of volatile interest rates, economic recession,
decreases in the availability of capital, increased competition from new entrants in the field, and
potential increased regulation.
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.
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.
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.