Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Inflation Hedge, 53  Ticker: FZUGWX
 
Description
A unit investment trust that seeks above-average total return by investing in exchange-traded funds (ETFs) which invest in REITs, senior loans or government bonds, exchange-traded products (ETPs) which invest in commodities, such as gold and silver, and in common stocks of agriculture, energy and materials companies (including metals and mining). There can be no assurance that the trust will provide a positive return during an inflationary period.
Please note that there is no assurance the objective will be met.
 
Summary
Product Code: IFOP53
Portfolio Status: Secondary
Initial Offer Date: 05/11/2023
Secondary Date: 08/08/2023
Portfolio Ending Date: 05/12/2025
Tax Structure: Grantor
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $10.1609
POP(*): Not Avail
Remaining Deferred Sales Charge: $0.0000
* As of Trade Date: 12/12/2024 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  Per Unit (as of 12/9/2024)
----- $0.31950
^ 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 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 distributions are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. For trusts that include funds, distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution per unit 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.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 iShares Gold Trust IAU 11.42%
 abrdn Silver ETF Trust SIVR 7.05%
 Invesco Senior Loan ETF BKLN 6.87%
 Exxon Mobil Corporation XOM 4.38%
 Vanguard Global ex-U.S. Real Estate ETF VNQI 3.91%
 Schwab U.S. TIPS ETF SCHP 3.80%
 SPDR FTSE International Government Inflation-Protected Bond ETF WIP 3.39%
 SPDR Dow Jones REIT ETF RWR 3.37%
 Schwab U.S. REIT ETF SCHH 3.27%
 Agnico Eagle Mines Limited AEM 2.81%
 Steel Dynamics, Inc. STLD 2.54%
 Marathon Petroleum Corporation MPC 2.53%
 Reliance Inc. RS 2.44%
 Suncor Energy Inc. SU 2.43%
 Diamondback Energy, Inc. FANG 2.37%
 Valero Energy Corporation VLO 2.24%
 EOG Resources, Inc. EOG 2.19%
 Canadian Natural Resources Limited CNQ 2.16%
 Shell Plc (ADR) SHEL 2.04%
 ConocoPhillips COP 1.96%
 Rio Tinto Plc (ADR) RIO 1.95%
 Chevron Corporation CVX 1.92%
 Nucor Corporation NUE 1.85%
 Eni SpA (ADR) E 1.82%
 Bunge Global S.A. BG 1.81%
 TotalEnergies SE (ADR) TTE 1.78%
 BHP Group Ltd (ADR) BHP 1.70%
 Glencore Plc (ADR) GLNCY 1.65%
 Repsol, S.A. (ADR) REPYY 1.61%
 BP Plc (ADR) BP 1.58%
 Equinor ASA EQNR 1.55%
 Nutrien Ltd. NTR 1.48%
 Archer-Daniels-Midland Company ADM 1.38%
 Devon Energy Corporation DVN 1.36%
 Vale S.A. (ADR) VALE 1.32%
 Sociedad Quimica y Minera de Chile S.A. (ADR) SQM 1.08%
 FMC Corporation FMC 0.94%
 
Total Number of Holdings:    37
Underlying Securities information represented above is as of 12/12/2024 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.

Sector Concentration Risk. A portfolio which is concentrated in an individual sector is subject to additional risks, including limited diversification.

Agribusiness Risk. The companies engaged in the agribusiness industry are subject to cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, excess capacity, product liability litigation and governmental regulation and subsidies.

Brexit Risk. 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.

Buy & Hold Risk – Taxable Trusts. 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.

Commodities Risk. Commodity prices are subject to several factors including, price and supply fluctuations, excess capacity, economic recession, domestic and international politics, government regulations, volatile interest rates, consumer spending trends and overall capital spending levels.

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.

Energy Risk. 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.

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.

ETP Risk. The ETPs held by the trust rely on custodians for the safekeeping of commodities. Failure by a custodian to safekeep the commodities could result in a loss to a fund. In addition, a custodian may not carry adequate insurance to cover claims against it which could adversely affect the value of a fund's assets, and in turn the value of the trust.

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.

Market Disruption Risk. 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.

Materials Risk. The companies engaged in the materials sector are subject to price and supply fluctuations, excess capacity, economic recession, domestic and international politics, government regulations, volatile interest rates, consumer spending trends and overall capital spending levels.

Precious Metals Risk. Companies in the precious metals industry are subject to risks associated with the exploration, development, and production of precious metals including competition for land, difficulties in obtaining required governmental approval to mine land, inability to raise adequate capital, increases in production costs  and political unrest in nations where sources of precious metals are located. In addition, the price of gold and other precious metals is subject to wide fluctuations and may be influenced by limited markets, fabricator demand, expected inflation, return on assets, central bank demand and availability of substitutes.

Public Health Crisis Risk. A public health crisis, and the ensuing policies enacted by governments and central banks in response, could cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.

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.

US Treasury Note Risk. The value of U.S. Treasury notes will be adversely affected by decreases in bond prices and increases in interest rates.

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.

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Fund Cusip Information
30331D140 (Cash)
30331D157 (Reinvest)
30331D165 (Cash-Fee)
30331D173 (Reinvest-Fee)
Printer Friendly Page Printer Friendly Page

 
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.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.