Technology Dividend, Series 38
Historically, technology companies were recognized for their growth potential and paid little in
dividends. During the internet build-out phase of the 1990s, many companies in the sector were new
businesses, committing capital to research and development and merger and acquisition efforts. Since
then, technology has evolved to become an indispensable part of our lives. Internet usage continues to
grow at a rapid pace. Demand is rising for products such as mobile phones, wireless connectivity,
computer devices, semiconductors and cloud computing.
Today, many technology companies have matured into companies with strong balance sheets and
financial flexibility and are paying dividends, while continuing to reinvest in their businesses. We believe
future growth potential combined with dividend payouts make technology an attractive sector.
This unit investment trust seeks above-average total return by investing in dividend-paying
companies in the technology sector; 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 stock market.
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 Internet-related, may experience extreme price and
volume fluctuations that are often unrelated to their
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.
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 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.
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.