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Core Three Income Allocation, 2  Ticker: FINNGX
 
Description
This unit investment trust seeks current monthly income, with capital appreciation as a secondary objective. The portfolio is diversified among federally tax-exempt municipal bond exchange-traded funds (ETFs), senior loan and limited duration ETFs, and domestic equity ETFs.
Please note that there is no assurance the objective will be met.
 
Summary
Product Code: C3IA2
Portfolio Status: Primary
Initial Offer Date: 05/05/2022
Portfolio Ending Date: 05/06/2024
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $9.4208
POP(*): $9.6358
Remaining Deferred Sales Charge: $0.2250
* As of Trade Date: 06/24/2022 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.

 Historical 12-Month Distribution of Trust Holdings:^
Rate (as of 6/24/2022) Per Unit (as of 6/24/2022)
2.86% $0.27600
^ There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust's distribution or distribution rate. The historical 12-month distribution per unit is based on the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust's offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution per unit and rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio. For trusts that include funds, distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 First Trust Senior Loan Fund FTSL 3.72%
 SPDR Blackstone Senior Loan ETF SRLN 3.72%
 Franklin Liberty Senior Loan ETF FLBL 3.72%
 Invesco Senior Loan ETF BKLN 3.71%
 JPMorgan Municipal ETF JMUB 3.45%
 iShares National Muni Bond ETF MUB 3.44%
 SPDR Nuveen Bloomberg Municipal Bond ETF TFI 3.43%
 VanEck Intermediate Muni ETF ITM 3.42%
 VanEck Short High Yield Muni ETF SHYD 3.40%
 Franklin Dynamic Municipal Bond ETF FLMI 3.40%
 Invesco National AMT-Free Municipal Bond ETF PZA 3.39%
 VanEck High Yield Muni ETF HYD 3.37%
 SPDR Nuveen Bloomberg High Yield Municipal Bond ETF HYMB 3.35%
 ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL 3.35%
 First Trust Municipal High Income ETF FMHI 3.34%
 VanEck Morningstar Durable Dividend ETF DURA 3.33%
 SPDR S&P Dividend ETF SDY 3.31%
 iShares Core High Dividend ETF HDV 3.30%
 WisdomTree U.S. Total Dividend Fund DTD 3.27%
 Schwab U.S. Dividend Equity ETF SCHD 3.27%
 Invesco S&P 500 High Dividend Low Volatility ETF SPHD 3.23%
 Fidelity Dividend ETF for Rising Rates FDRR 3.23%
 SPDR Portfolio S&P 500 High Dividend ETF SPYD 3.20%
 ALPS Sector Dividend Dogs ETF SDOG 3.18%
 iShares Broad USD High Yield Corporate Bond ETF USHY 1.63%
 Franklin Liberty High Yield Corporate ETF FLHY 1.63%
 First Trust Tactical High Yield ETF HYLS 1.58%
 Vanguard Short-Term Corporate Bond ETF VCSH 1.54%
 iShares Core 1-5 Year USD Bond ETF ISTB 1.54%
 iShares Trust iShares 1-5 Year Investment Grade Corporate Bond ETF IGSB 1.53%
 First Trust Low Duration Opportunities ETF LMBS 1.53%
 Vanguard Short-Term Inflation-Protected Securities ETF VTIP 1.53%
 iShares CMBS ETF CMBS 1.51%
 FlexShares Credit-Scored US Corporate Bond Index Fund SKOR 1.50%
 Invesco Variable Rate Preferred ETF VRP 1.46%
 VanEck Emerging Markets High Yield Bond ETF HYEM 1.44%
 
Total Number of Holdings:    36
Underlying Securities information represented above is as of 06/24/2022 but will vary with future fluctuations in the market.

 Standard Account Sales Charges *
Transactional sales charges: Initial:  -0.11%
  Deferred:  2.34%
C&D Fee:    0.52%
Maximum Sales Charge:   2.75%
CUSIP Type Distribution
30326G785 Cash Monthly
30326G793 Reinvest Monthly
* Based on the offer price as of 06/24/2022 4:00pm ET

 Fee/Wrap Account Sales Charges *
C&D Fee:    0.53%
Maximum Sales Charge:   0.53%
CUSIP Type Distribution
30326G801 Cash-Fee Monthly
30326G819 Reinvest-Fee Monthly
* Based on the NAV price as of 06/24/2022 4:00pm ET
In addition to the sales charges listed, UITs are subject to annual operating expenses and organization costs.

 Deferred Sales Charge Schedule
Amount Date
$0.07500 August 19, 2022
$0.07500 September 20, 2022
$0.07500 October 20, 2022

Risk Considerations

Brexit Risk. Approximately one year after the United Kingdom officially departed the European Union (commonly referred to as "Brexit"), the United Kingdom and the European Union reached a trade agreement that became effective on December 31, 2020. It is not currently possible to determine the extent of the impact the Brexit trade agreement 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.

Covenant-Lite Loan Risk. Certain of the funds invest significantly in "covenant-lite" loans, which are loans made with minimal protections for the lender. Because covenant-lite loans are less restrictive on borrowers and provide less protection for lenders than typical corporate loans, the risk of default may be significantly higher.

COVID-19 Economic Impact Risk. The COVID-19 global pandemic has caused and may continue to cause significant volatility and declines 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.

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 LIBOR Risk. Certain of the floating-rate securities pay interest based on LIBOR. The United Kingdom's Financial Conduct Authority ("FCA"), which regulates LIBOR, intends to cease making LIBOR available as a reference rate over a phase-out period that began in early 2022. However, subsequent announcements by the FCA, the LIBOR administrators, and other regulators indicate that it is possible that the most widely used LIBOR rates may continue until mid-2023. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain portfolio investments. Any potential effects of the transition away from LIBOR can be difficult to ascertain, and they may vary depending on a variety of factors and they could result in losses to the portfolio.

Foreign Securities Risk. 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.

Fixed Income Risk. The value of fixed-income securities can be expected to decline with increases in interest rates and will also fluctuate with changes in the general condition of fixed-income securities markets, changes in inflation rates or when political or economic events affecting the issuers of such securities occur. Fixed-income portfolios may be subject to federal, state, and local taxes and/or the Alternative Minimum Tax. An investment which includes foreign bonds should be made with an understanding of the additional risks involved with foreign issues including losses due to future political and economic developments, the possible seizure or nationalization of foreign deposits, foreign currency devaluations, restrictions on foreign investments and exchange of securities, inadequate financial information and lack of U.S. jurisdiction over foreign issuers. Consult the Risk Factors section of the prospectus for a more complete discussion of the risks associated with the portfolio.

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.

Market Disruption Risk. 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.

Mortgage-Backed Securities Risk. Rising interest rates tend to extend the duration of mortgage-backed securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. In addition, mortgage-backed securities are subject to prepayment risk, the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline.

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.

Term Risk - 15 months. Although this unit investment trust terminates in approximately 15 months, 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.

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 cybersecurity.

You should carefully consider the trust's investment objectives, risks, and charges and expenses 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 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.

Fund Cusip Information
30326G785 (Cash)
30326G793 (Reinvest)
30326G801 (Cash-Fee)
30326G819 (Reinvest-Fee)
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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