40/60 Strategic Allocation, 1st Qtr 2018  Ticker: FBMDUX
 
Description
A unit investment trust which seeks the potential for above-average total return by investing approximately 40% of its assets in common stocks which are selected by applying a disciplined investment strategy and 60% of its assets in exchange-traded funds which invest in fixed-income securities.
 
Summary
Product Code: 4S1Q18
Portfolio Status: Secondary
Initial Offer Date: 01/16/2018
Secondary Date: 04/12/2018
Portfolio Ending Date: 04/17/2019
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $9.0443
POP(*): $9.1681
Remaining Deferred Sales Charge: $0.0000
* As of Trade Date: 12/13/2018 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Estimated Net Annual Distribution Per Unit
Estimated Net Annual Distribution Per Unit * $0.2834
As of 12/10/2018
* The estimates are based on annualizing the most recent dividends declared by the issuers of the securities included in the portfolio. There is no guarantee that the issuers of the securities included in the portfolio will declare distributions in the future or that, if declared, they will either remain at current levels or increase over time.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 SPDR Bloomberg Barclays Short Term High Yield Bond ETF SJNK 2.81%
 First Trust Senior Loan Fund FTSL 2.81%
 SPDR Blackstone/GSO Senior Loan ETF SRLN 2.81%
 Vanguard Intermediate-Term Corporate Bond ETF VCIT 2.76%
 iShares Emerging Markets High Yield Bond ETF EMHY 2.62%
 Vanguard Long-Term Corporate Bond ETF VCLT 2.61%
 iShares Long-Term Corporate Bond ETF IGLB 2.61%
 SPDR Portfolio Long Term Corporate Bond ETF SPLB 2.60%
 Vanguard Mortgage-Backed Securities ETF VMBS 2.54%
 SPDR Bloomberg Barclays Convertible Securities ETF CWB 2.51%
 Invesco Senior Loan ETF BKLN 2.51%
 iShares TIPS Bond ETF TIP 2.49%
 SPDR Bloomberg Barclays TIPS ETF IPE 2.49%
 First Trust Tactical High Yield ETF HYLS 2.46%
 Invesco Preferred ETF PGX 2.37%
 iShares U.S. Preferred Stock ETF PFF 2.35%
 First Trust Low Duration Opportunities ETF LMBS 2.24%
 iShares 7-10 Year Treasury Bond ETF IEF 2.22%
 iShares 10-20 Year Treasury Bond ETF TLH 2.20%
 SPDR Portfolio Intermediate Term Corporate Bond ETF SPIB 2.19%
 Highland/iBoxx Senior Loan ETF SNLN 2.19%
 VanEck Vectors J.P. Morgan EM Local Currency Bond ETF EMLC 2.18%
 iShares iBoxx $ Investment Grade Corporate Bond ETF LQD 2.12%
 iShares Core 10+ Year USD Bond ETF ILTB 2.07%
 First Trust Preferred Securities and Income ETF FPE 2.06%
 HCA Healthcare, Inc. HCA 0.55%
 O'Reilly Automotive, Inc. ORLY 0.49%
 Illumina, Inc. ILMN 0.49%
 Hormel Foods Corporation HRL 0.47%
 NextEra Energy, Inc. NEE 0.44%
 Express Scripts Holding Company ESRX 0.44%
 Welltower Inc. WELL 0.44%
 Centene Corporation CNC 0.44%
 CME Group Inc. CME 0.44%
 Intuitive Surgical, Inc. ISRG 0.44%
 UnitedHealth Group Incorporated UNH 0.43%
 WEC Energy Group, Inc. WEC 0.42%
 Costco Wholesale Corporation COST 0.42%
 The TJX Companies, Inc. TJX 0.42%
 Anthem, Inc. ANTM 0.42%
 Ventas, Inc. VTR 0.41%
 Eversource Energy ES 0.41%
 Verizon Communications Inc. VZ 0.40%
 Intel Corporation INTC 0.40%
 Sysco Corporation SYY 0.39%
 Dollar General Corporation DG 0.39%
 Prologis, Inc. PLD 0.38%
 T-Mobile US, Inc. TMUS 0.38%
 Waste Management, Inc. WM 0.37%
 Public Storage PSA 0.36%
 Cigna Corporation CI 0.36%
 Ross Stores, Inc. ROST 0.35%
 Biogen Inc. BIIB 0.34%
 Corning Incorporated GLW 0.33%
 CVS Health Corporation CVS 0.33%
 Amphenol Corporation APH 0.33%
 Medtronic Plc MDT 0.32%
 Exxon Mobil Corporation XOM 0.32%
 Raytheon Company RTN 0.32%
 Target Corporation TGT 0.31%
 Texas Instruments Incorporated TXN 0.31%
 Newmont Mining Corporation NEM 0.31%
 Northrop Grumman Corporation NOC 0.31%
 L'Oreal S.A. (ADR) LRLCY 0.30%
 Monster Beverage Corporation MNST 0.30%
 Nucor Corporation NUE 0.29%
 Northern Trust Corporation NTRS 0.29%
 Micron Technology, Inc. MU 0.29%
 T. Rowe Price Group, Inc. TROW 0.29%
 General Dynamics Corporation GD 0.29%
 Accenture Plc ACN 0.29%
 Facebook, Inc. (Class A) FB 0.29%
 Altria Group, Inc. MO 0.28%
 The Allstate Corporation ALL 0.28%
 Cerner Corporation CERN 0.28%
 Tokio Marine Holdings, Inc. (ADR) TKOMY 0.28%
 Total S.A. (ADR) TOT 0.27%
 Best Buy Co., Inc. BBY 0.27%
 Dollar Tree, Inc. DLTR 0.27%
 NTT DOCOMO, Inc. (ADR) DCMYY 0.27%
 Valero Energy Corporation VLO 0.27%
 Orange (ADR) ORAN 0.27%
 Molson Coors Brewing Company TAP 0.27%
 Lam Research Corporation LRCX 0.26%
 Eni SpA (ADR) E 0.26%
 The Toronto-Dominion Bank TD 0.26%
 FedEx Corporation FDX 0.25%
 Tyson Foods, Inc. (Class A) TSN 0.25%
 Toyota Motor Corporation (ADR) TM 0.25%
 Novo Nordisk A/S (ADR) NVO 0.25%
 Stanley Black & Decker, Inc. SWK 0.25%
 D.R. Horton, Inc. DHI 0.25%
 Skyworks Solutions, Inc. SWKS 0.25%
 Nippon Telegraph and Telephone Corporation (ADR) NTTYY 0.25%
 Eaton Corporation Plc ETN 0.24%
 Bank of Montreal BMO 0.24%
 Royal Bank of Canada RY 0.24%
 Rio Tinto Plc (ADR) RIO 0.24%
 Applied Materials, Inc. AMAT 0.23%
 Nissan Motor Co., Ltd. (ADR) NSANY 0.23%
 Suncor Energy Inc. SU 0.23%
 NIDEC Corporation (ADR) NJDCY 0.23%
 PG&E Corporation PCG 0.22%
 Honda Motor Co., Ltd. (ADR) HMC 0.22%
 Canon Inc. (ADR) CAJ 0.21%
 TE Connectivity Ltd. TEL 0.21%
 Telstra Corporation Limited (ADR) TLSYY 0.21%
 Nintendo Co., Ltd. (ADR) NTDOY 0.21%
 ABIOMED, Inc. ABMD 0.21%
 LyondellBasell Industries N.V. LYB 0.21%
 Hitachi, Ltd. (ADR) HTHIY 0.20%
 AXA S.A. (ADR) AXAHY 0.19%
 Lloyds Banking Group Plc (ADR) LYG 0.19%
 Masimo Corporation MASI 0.19%
 Atmos Energy Corporation ATO 0.18%
 Vodafone Group Plc (ADR) VOD 0.18%
 IDACORP, Inc. IDA 0.17%
 Universal Health Services, Inc. (Class B) UHS 0.17%
 Pinnacle West Capital Corporation PNW 0.17%
 F5 Networks, Inc. FFIV 0.17%
 Columbia Sportswear Company COLM 0.17%
 Komatsu Ltd. (ADR) KMTUY 0.17%
 Rollins, Inc. ROL 0.17%
 WellCare Health Plans, Inc. WCG 0.17%
 PRA Health Sciences, Inc. PRAH 0.17%
 Henry Schein, Inc. HSIC 0.16%
 Mohawk Industries, Inc. MHK 0.16%
 Expeditors International of Washington, Inc. EXPD 0.15%
 Akamai Technologies, Inc. AKAM 0.15%
 Foot Locker, Inc. FL 0.15%
 Hologic, Inc. HOLX 0.14%
 MAXIMUS, Inc. MMS 0.14%
 Williams-Sonoma, Inc. WSM 0.14%
 Seaboard Corporation SEB 0.14%
 Gentex Corporation GNTX 0.13%
 The Toro Company TTC 0.13%
 Old Dominion Freight Line, Inc. ODFL 0.13%
 Annaly Capital Management, Inc. NLY 0.13%
 FLIR Systems, Inc. FLIR 0.13%
 CBRE Group, Inc. CBRE 0.13%
 Conagra Brands, Inc. CAG 0.12%
 Torchmark Corporation TMK 0.12%
 Snap-on Incorporated SNA 0.12%
 Arrow Electronics, Inc. ARW 0.12%
 Tech Data Corporation TECD 0.12%
 Ciena Corporation CIEN 0.12%
 Insperity, Inc. NSP 0.12%
 Landstar System, Inc. LSTR 0.12%
 Reinsurance Group of America, Incorporated RGA 0.12%
 Carlisle Companies Incorporated CSL 0.12%
 Reliance Steel & Aluminum Co. RS 0.12%
 SYNNEX Corporation SNX 0.12%
 Huntington Ingalls Industries, Inc. HII 0.12%
 RingCentral, Inc. (Class A) RNG 0.12%
 GCI Liberty, Inc. (Class A) GLIBA 0.12%
 The Gap, Inc. GPS 0.11%
 Teradyne, Inc. TER 0.11%
 Quanta Services, Inc. PWR 0.11%
 EMCOR Group, Inc. EME 0.11%
 JetBlue Airways Corporation JBLU 0.11%
 ON Semiconductor Corporation ON 0.11%
 National Beverage Corp. FIZZ 0.11%
 United Therapeutics Corporation UTHR 0.11%
 First American Financial Corporation FAF 0.11%
 Aramark ARMK 0.11%
 FNF Group FNF 0.11%
 MGIC Investment Corporation MTG 0.10%
 MEDNAX, Inc. MD 0.10%
 Ingredion Incorporated INGR 0.10%
 MKS Instruments, Inc. MKSI 0.10%
 FTI Consulting, Inc. FCN 0.10%
 The Boston Beer Company, Inc. SAM 0.10%
 Carter's, Inc. CRI 0.10%
 Green Dot Corporation (Class A) GDOT 0.10%
 American States Water Company AWR 0.09%
 NVR, Inc. NVR 0.09%
 Spire Inc. SR 0.09%
 PVH Corp. PVH 0.09%
 Skechers U.S.A., Inc. SKX 0.09%
 AMN Healthcare Services, Inc. AMN 0.09%
 Spirit Airlines, Inc. SAVE 0.09%
 Qualys, Inc. QLYS 0.09%
 International Speedway Corporation ISCA 0.08%
 Adtalem Global Education Inc. ATGE 0.08%
 California Water Service Group CWT 0.08%
 Pebblebrook Hotel Trust PEB 0.08%
 Pilgrim's Pride Corporation PPC 0.08%
 Urban Outfitters, Inc. URBN 0.07%
 American Eagle Outfitters, Inc. AEO 0.07%
 The Cheesecake Factory Incorporated CAKE 0.07%
 Mercury Systems, Inc. MRCY 0.07%
 Finisar Corporation FNSR 0.07%
 J & J Snack Foods Corp. JJSF 0.07%
 Dick's Sporting Goods, Inc. DKS 0.07%
 RPC, Inc. RES 0.07%
 Innospec Inc. IOSP 0.07%
 Owens Corning OC 0.07%
 Apollo Commercial Real Estate Finance, Inc. ARI 0.07%
 Piedmont Office Realty Trust, Inc. PDM 0.07%
 Aaron's, Inc. AAN 0.07%
 Retail Properties of America, Inc. RPAI 0.07%
 Sprouts Farmers Market, Inc. SFM 0.07%
 Columbia Property Trust, Inc. CXP 0.07%
 Werner Enterprises, Inc. WERN 0.06%
 Cooper Tire & Rubber Company CTB 0.06%
 Applied Industrial Technologies, Inc. AIT 0.06%
 Plexus Corp. PLXS 0.06%
 AVX Corporation AVX 0.06%
 Stamps.com Inc. STMP 0.06%
 Evercore Inc. EVR 0.06%
 Corcept Therapeutics Incorporated CORT 0.06%
 Axos Financial Inc. AX 0.06%
 GameStop Corp. (Class A) GME 0.05%
 Benchmark Electronics, Inc. BHE 0.05%
 Universal Forest Products, Inc. UFPI 0.05%
 Cirrus Logic, Inc. CRUS 0.05%
 II-VI Incorporated IIVI 0.05%
 Sanderson Farms, Inc. SAFM 0.05%
 Federated Investors, Inc. (Class B) FII 0.05%
 EnPro Industries, Inc. NPO 0.05%
 Thor Industries, Inc. THO 0.05%
 Magellan Health, Inc. MGLN 0.05%
 Hecla Mining Company HL 0.04%
 Diamond Offshore Drilling, Inc. DO 0.04%
 Advanced Energy Industries, Inc. AEIS 0.04%
 Big Lots, Inc. BIG 0.04%
 The Children's Place, Inc. PLCE 0.04%
 Callon Petroleum Company CPE 0.04%
 Cooper-Standard Holdings Inc. CPS 0.04%
 Matador Resources Company MTDR 0.04%
 American Woodmark Corporation AMWD 0.03%
 Kronos Worldwide, Inc. KRO 0.03%
 United Natural Foods, Inc. UNFI 0.02%
 
Total Number of Holdings:    233
Underlying Securities information represented above is as of 12/13/2018 but will vary with future fluctuations in the market.

Risk Considerations

Equity Risk. An investment in a portfolio containing common stocks is subject to certain risks, 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.

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

ETF Risk. 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. Certain ETFs may employ the use of leverage, which increases the volatility of such funds.

Floating Rate Risk. Certain of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest rate benchmark. As a result, the yield on such a security will generally decline in a falling interest rate environment, causing the trust to experience a reduction in the income it receives from such securities.

Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

High-Yield or Junk Bonds Risk. Investing in high-yield securities or "junk" bonds should be viewed as speculative and you should review your ability to assume the risks associated with investments which utilize such securities. High-yield securities are subject to numerous risks, including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.

Investment Grade Bonds Risk. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

IRA Risk. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

Preferred Securities Risk. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, and therefore will be subject to greater credit risk than those debt instruments.

REITs Risk. An investment in a portfolio containing REIT securities is subject to additional risks including limited diversification. Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

Senior Loans Risk. The yield on senior loans will generally decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans are generally below investment grade quality ("junk" bonds). An investment in senior loans involves the risk that the borrowers may default on their obligations to pay principal or interest when due.

Small-Cap and Mid-Cap Risk. 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.

US Treasury Debt Instruments Risk. Debt instruments, such as U.S. Treasury obligations, are subject to numerous risks including higher interest rates, economic recession and deterioration of the bond market or investors' perceptions thereof.

Volatility Risk. 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.

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

Important Note. 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.

Operational Risk. 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 cyber security.

Although the portfolio terminates in approximately one year, the strategy is long-term. Investors should consider their ability to pursue investing in successive portfolios, if available. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

You should carefully consider the trust's investment objectives, risks, and charges and expenses before investing. Contact your financial advisor or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the trust. Read it carefully before you invest.

This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.

Not FDIC Insured, Not Bank Guaranteed and May Lose Value.