Defensive Equity Portfolio, Series 54

Investors tend to gravitate toward less economically sensitive sectors when questions arise regarding sustained economic growth. Because of their unique combination of global exposure and historically defensive market characteristics, we believe that the consumer staples and health care sectors represent an attractive opportunity for investors during times of uncertain economic growth. The Defensive Equity Portfolio was designed with this in mind. It invests approximately equally in stocks of companies in both the consumer staples and health care sectors.

Health Care

The health care industry has been responsible for numerous discoveries that have led to new drugs and products designed to better serve the masses, especially the aging population. These discoveries have improved the quality of life and the life expectancy of millions. From 2019- 2028, it is projected that health care spending will grow at an average rate of 5.4% annually. In addition, health care spending is anticipated to grow 1.1% faster than GDP per year over the same period; as a result, the health care share of GDP is expected to increase from 17.8% in 2019 to 19.7% by 2028.1


Consumer Staples

Consumer staples consist of food, beverages, household goods and personal products that most consumers use on a daily basis. Purchases of these products tend to be a relatively small portion of most consumers' yearly income, which keeps demand stable. Because of this stability, sales and earnings growth tend to remain fairly constant in up or down markets. We believe consumer staples represents an attractive sector for investors due to its non-cyclical nature and significant exposure to foreign demand.

Portfolio Objective

This unit investment trust seeks above-average capital appreciation; however, there is no assurance the objective will be met. The portfolio terminates approximately two years from the initial date of deposit.

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.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Risk Considerations
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 both the consumer staples and health care sectors which involves additional risks, including limited diversification. The companies engaged in the consumer staples 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, health crises, such as a pandemic outbreak, can severely impact the health care industry in particular.

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.

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 recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December 2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or 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.

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.