European Deep Value Dividend Portfolio, Series 38

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.

All of the securities held by the trust are issued by companies headquartered and/or incorporated in Europe, with a significant percentage of these companies headquartered or incorporated in the United Kingdom. This may present more risks than a portfolio which is broadly diversified over several regions.

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.

An investment in a portfolio containing mid-cap companies is subject to additional risks, as the share prices of 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.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East 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 ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future 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.