FT American Fundamental Industries ETF Portfolio, Series 1

Deglobalization is reshaping the global economy as countries emphasize local production and reduced reliance on international supply chains. We believe this shift is driving U.S. efforts toward re-industrialization, infrastructure improvements, energy independence, and enhancing protections for its technological advancements.

This unit investment trust (UIT) invests in a portfolio of equity exchange-traded funds (ETFs) advised by First Trust Advisors L.P., an affiliate of the trust’s sponsor. The ETFs included in the portfolio are based on the principle of “Build it, Power it, Protect it, Transport it.” This principle outlines the flow of goods and services from creation, through power and protection, and finally to the desired destination or end user.

Build It

A renaissance of American industry is underway, in our opinion, arising from elevated risks to global supply chains, increased trade protectionism, and U.S. industrial policies offering substantial incentives for reshoring.

• Nearly 1.9 million reshoring and FDI jobs were announced from 2010 through 2023. Reshoring is anticipated to continue to be key to both U.S. manufacturing and economic recovery in the years to come.¹


• Artificial intelligence (AI) and robots are tools that help build things better, faster, safer, and smarter. Worldwide consumer robot unit shipments are anticipated to reach 65.9 million units annually by 2025, up from 15.4 million units annually in 2018.²

Power It

Demand for electricity is likely to soar over the next decade as a convergence of new, powerhungry innovations reach critical mass, which may require massive investments to modernize and expand power grids within the U.S and around the world

• The smart grid is a renovation of the electricity supply chain, which is designed to modernize how we produce, transport, use and store energy. It may transform the current electric power grid just as the internet revolutionized communications.


• Utilities were expected to spend up to $53.8 billion on internet devices and software in 2024, up from $28.6 billion in 2019.³

Protect It

Individuals, businesses and governments face a growing challenge of protecting private information that may be accessible to cybercriminals, such as hackers and spies. In recent years, the risks have never been greater and the need for cybersecurity is even more critical.

• The global cybersecurity market is anticipated to reach $638.2 billion by 2032, up from $205.8 billion in 2023 and is anticipated to have a compound annual growth rate (CAGR) of 13.4% over the 2024-2032 period.⁴


• The command, control, communications, computers, cyber, intelligence, surveillance, and reconnaissance (“C5ISR”) is a critical framework for military operations. By 2029, the C5ISR market is anticipated to reach approximately $19.28 billion, up from $10.72 billion in 2024, at (CAGR) of 12.5%.⁵

Transport It

Reliable energy transportation is essential to keeping the U.S. powered, ensuring that petroleum, natural gas, and electricity efficiently reach homes and businesses. From pipelines and power lines to storage and power generation facilities, energy infrastructure is fundamental to maintaining a secure and stable energy supply.

• In 2024, the global gas pipeline infrastructure market was valued at approximately $2.8 trillion and is projected to reach $3.0 trillion by 2030.⁶

Portfolio Objective

This UIT seeks above-average capital appreciation; however, there is no assurance the objective will be met.

Indxx and Indxx US Aerospace & Defense Index (“Index”) are trademarks of Indxx, Inc. (“Indxx”) and have been licensed for use for certain purposes by First Trust. The trust is not sponsored, endorsed, sold or promoted by Indxx and Indxx makes no representation regarding the advisability of trading in such product. The Index is determined, composed and calculated by Indxx without regard to First Trust or the trust.

Nasdaq^®, Nasdaq OMX^®, Clean Edge^®, Nasdaq CTA Artificial Intelligence and Robotics^TM Index, and Nasdaq CTA Cybersecurity^TM Index, Nasdaq Clean Edge Smart Grid Infrastructure^TM Index (“the Nasdaq Indexes”) are registered trademarks and service marks of Nasdaq, Inc. and Clean Edge, Inc., respectively (together with its affiliates hereinafter referred to as the “Corporations”) and are licensed for use by First Trust. The trust has not been passed on by the Corporations as to their legality or suitability. The trust is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE TRUST.

Richard Bernstein Advisors and Richard Bernstein Advisors American Industrial Renaissance^® Index (“Index”) are trademarks and trade names of Richard Bernstein Advisors (“RBA”). The trust is not sponsored, endorsed, sold or promoted by RBA and RBA makes no representation or warranty, express or implied, to the owners of the trust or any member of the public regarding the advisability of trading in the trust. RBA’s only relationship to First Trust is the licensing of certain trademarks and trade names of RBA and of the Index, which is determined and composed by RBA without regard to First Trust or the trust. RBA has no obligation to take the needs of First Trust or the owners of the trust into consideration in determining or composing the Index. RBA is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the trust to be listed or in the determination or calculation of the equation by which the trust is to be converted into cash. RBA has no obligation or liability in connection with the administration, marketing or trading of the trust.

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.

Risk Considerations
An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning ETFs which invest in common stocks.

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 ETFs or their underlying investments change. Unlike open-end funds, which trade at prices based on a current determination of the fund’s net asset value, ETFs frequently trade at a discount from their net asset value in the secondary market.

Investments in MLPs are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. U.S. taxing authorities could challenge the trust’s treatment of the MLPs for federal income tax purposes. These tax risks could have a negative impact on the after-tax income available for distribution by the MLPs and/or the value of the trust’s investments.

You should be aware that the portfolio is concentrated in stocks in both the energy and information technology sectors which involves additional risks, including limited diversification. The companies engaged in the energy sector are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. Falling oil and gas prices may negatively impact the profitability and business prospects of certain energy companies. 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 operating performance.

The companies involved in the aerospace and defense industries are subject to fierce competition, consolidation, adverse political and government developments, substantial research and development costs, limited numbers of potential customers and excess capacity and spending trends. Their products and services may be subject to rapid obsolescence.

Smart grid companies can be negatively affected by high costs of research and development, high capital requirements for implementation, government regulations, limited ability of industrial and utility companies to implement new technologies and uncertainty of the ability of new products to penetrate established industries.

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. Risks associated with investing in non-U.S. securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less developed, less liquid, less regulated, and more volatile than the U.S. and developed non-U.S. markets.

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.

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 organization costs.

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.

For a discussion of additional risks of investing in the trust see the “Risk Factors” section of the prospectus.