Municipal Advantage Closed-End and ETF Portfolio, Series 65
Americans deal with a number of different taxes in their everyday lives, perhaps none more noticeable
than individual income taxes. In fact, individual income taxes comprise the largest component of
Americans’ tax bill. Tax Freedom Day is the day on which Americans have earned enough money to pay
all federal, state and local taxes for the year. On average, Americans had to work a full 42 days in 2019
just to earn enough money to pay for these taxes.1
Investing in both closed-end funds and exchange-traded funds provides an
efficient way to achieve diversification across municipal bonds. The broad range of closed-end funds and
exchange-traded funds in which the portfolio invests are further diversified across hundreds of individual
issues. It is important to note that diversification does not guarantee a profit or protect against loss.
The trust seeks monthly income that is exempt from federal income taxes by investing in a
diversified pool of closed-end funds and exchange-traded funds that invest in tax-exempt
It is important to note that certain distributions paid by certain funds may be subject
to federal income taxes and may be subject to the alternative minimum tax.
|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 associated with an investment in a portfolio of closed-end funds and
exchange-traded funds (ETFs).
Municipal bonds are subject to numerous risks, including higher interest rates, economic recession,
deterioration of the municipal bond market, possible downgrades and defaults of interest and/or principal.
Closed-end funds and ETFs are subject to various risks, including management’s ability to meet the fund’s
investment objective, and to manage the fund’s portfolio when the underlying securities are redeemed or
sold, during periods of market turmoil and as investors’ perceptions regarding the funds or their underlying
investments change. Shares of closed-end funds and ETFs frequently trade at a discount to their net asset
value in the secondary market and the net asset value may decrease. Based on current publicly available
information, none of the funds selected for the portfolio are reporting the use of structural leverage.
However, certain or all of these funds may have utilized structural leverage in the past and may elect to
utilize structural leverage in the future. Structural leverage creates a systematic level of additional investment
exposure through a fund’s issuance of preferred shares or debt securities, or through borrowing money. Funds
which employ structural leverage are more volatile than those that do not.
All of the funds invest in investment grade securities. Investment grade securities are subject to numerous
risks including higher interest rates, economic recession, deterioration of the investment grade bond market
or investors’ perception thereof, possible downgrades and defaults of interest and/or principal.
It is important to note that an investment can be made in the underlying funds directly rather than through
the trust. These direct investments can be made without paying the trust’s sales charge, operating expenses
and organizational costs.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity.
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 COVID-19 global pandemic has resulted in major disruptions to economies and markets around the world. Financial markets have experienced extreme volatility and severe losses, negatively impacting global economic
growth prospects. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty and may exacerbate other political, social and economic risks.
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. The markets for credit instruments, including municipal
securities, have experienced periods of extreme illiquidity and volatility.
For a discussion of additional risks of investing in the trust see the “Risk Factors” section of the prospectus.