U.S. Infrastructure Portfolio, Series 21
A sound infrastructure is fundamental to the quality of life and the economic growth and development of
a community. Infrastructure assets help provide products and services that have become essential to
everyday life such as water and wastewater systems, roads, railways, airports, utilities, hospitals, schools
and communications systems. Developing countries realize that infrastructure will play a key role in
economic development and in their ability to attain projected growth rates. However, the need to improve
infrastructure extends beyond rapidly developing countries. The U.S., while considered to be a world
leader in many aspects, lags other developed regions, especially Europe, when it comes to the condition of
its aging infrastructure. The U.S. Infrastructure Portfolio invests in companies that provide products or
services that aid the development and maintenance of our country’s infrastructure system as well as
companies that tend to benefit from an increasing economic growth rate.
The Aging of America
Infrastructure funding gaps in the U.S. are immense in comparison
to the rest of the world. Total investment needs for America’s
infrastructure are estimated to be approximately $4.59 trillion from
2016 through 2025. Our aging infrastructure comes with additional
costs in terms of economic growth.
- The U.S. has 614,387 bridges of which almost four in 10 are 50
years or older. Many of these bridges are approaching the end of
their design life. The most recent estimate puts the nation’s
backlog of bridge restoration needs at $123 billion.
- One out of every five miles of highway pavement is considered to
be in poor condition. Our roads are chronically underfunded and
are becoming more dangerous.
- Our nation continues to underinvest in school facilities, leaving an
estimated $38 billion per year gap in funding. As a result, 24% of
public school buildings were rated as being in fair or poor condition.
- More than 56 million new users are anticipated to be connected to
centralized wastewater treatment systems over the next two
decades. An estimated $271 billion is needed to meet current and
- Despite increasing demand, the nation’s transit systems have been
continually underfunded. This has resulted in aging infrastructure
and a $90 billion rehabilitation backlog.
Source: American Society of Civil Engineers
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 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
You should be aware that the portfolio is concentrated in
stocks in the industrials sector which involves additional risks,
including limited diversification. The companies engaged in
the industrials sector are subject to certain risks, including a
deterioration in the general state of the economy, intense
competition, domestic and international politics, excess
capacity and changing spending trends.
Certain of the securities held by the trust are issued by foreign entities. 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.
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
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.