European Deep Value Dividend Portfolio, Series 35

The European Deep Value Dividend Portfolio is a unit investment trust that invests in 30 European companies that have low estimated current year price-to-earnings (P/E) ratios in addition to above-average dividend yields. We believe these companies may offer long-term investors an opportunity for capital appreciation and dividend income based on these factors.

Importance of P/E Ratios | The P/E ratio is considered the most common measure of a stock’s value. Stocks that have high P/E ratios tend to be considered a higher risk investment than those with low P/E ratios, since a high P/E ratio often signifies high earnings growth expectations.

Importance of Dividends | Corporations are not obligated to share their earnings with stockholders. So, in our opinion, dividends may be viewed as a sign of a company’s profitability as well as management’s assessment of the future. We believe that companies that have shown a solid history of distributing dividends to shareholders are a wise choice for prudent investors to consider as part of their overall investment plan.

Portfolio Selection Process

Through our selection process we seek to find the stocks that we believe have the best prospects for above-average total return.

Identify the Universe | We begin with the companies listed in the STOXX Europe 600 Index.

Screen the Universe | We then evaluate the companies in the universe based on marketcapitalization, the ratio of each stock’s current price to its estimated current year earnings, its dividend payout and dividend yield ratios. These screens are designed to identify stocks with a low P/E ratio and the ability to sustain its dividend yield.

Select the Portfolio | The final step is to select the 30 stocks for the portfolio subject to a maximum of approximately 30% in a single sector. The stocks are approximately equally weighted within the portfolio.

Portfolio Objective

This unit investment trust seeks above-average total return through a combination of capital appreciation and dividend income; however, there is no assurance the objective will be met.

You should consider the portfolio's investment objective, 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.

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.

Because the portfolio is concentrated in companies headquartered in Europe, with a significant percentage of these companies headquartered or incorporated in the United Kingdom, it may present more risks than a portfolio which is broadly diversified over several regions. The United Kingdom vote to leave the European Union and other recent rapid political and social change throughout Europe make the extent and nature of future economic development in Europe and the effect on securities issued by European issuers difficult to predict.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.

The United Kingdom’s official departure from the European Union (commonly referred to as “Brexit”) led to volatility in global financial markets, in particular those of the United Kingdom and across Europe, and the weakening in political, regulatory, consumer, corporate and financial confidence in the United Kingdom and Europe. It is not currently possible to determine the extent of the impact that Brexit may have on the portfolio’s investments and this uncertainty could negatively impact current and future economic conditions in the United Kingdom and other countries, which could negatively impact the value of the portfolio’s investments.

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 cybersecurity.

In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.

The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

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.