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S&P Dividend Aristocrats Buy-Write, 35  Ticker: FNQALX
 
Description
A unit investment trust that seeks to provide income, with limited capital appreciation as a secondary objective. The trust invests in a fixed portfolio of U.S. Treasury securities and common stocks which are selected from the S&P 500 Dividend Aristocrats Index. The common stocks will be subject to a Long-Term Equity AnticiPation Securities (LEAPS®) call option against each position.
Please note that there is no assurance the objective will be met.
 
Summary
Product Code: ARBW35
Portfolio Status: Secondary
Initial Offer Date: 05/14/2024
Secondary Date: 07/16/2024
Portfolio Ending Date: 01/21/2026
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $9.7319
POP(*): $9.9559
Remaining Deferred Sales Charge: $0.2250
* As of Trade Date: 07/22/2024 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 (as of 7/22/2024) Per Unit (as of 7/22/2024)
2.05% $0.20450
 Distributions from Treasury Obligations:^^
Total Principal Distribution Per Unit (as of 7/22/2024)
$0.4568
^ 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.
^^ Represents the estimated principal per unit from the maturity of Treasury Obligations. The premium income received from writing call options is invested in U.S. Treasury Notes. Unit holders receive income from the treasury notes until they mature and principal shortly after they mature.

 Holdings Analysis Click here to Perform a Benchmark Comparison  
 Sector Weighting
Communication Services  Communication Services 0.00%
Consumer Discretionary  Consumer Discretionary 8.86%
Consumer Staples  Consumer Staples 19.88%
Energy  Energy 8.22%
Financials  Financials 8.81%
Health Care  Health Care 19.20%
Industrials  Industrials 14.16%
Information Technology  Information Technology 4.88%
Materials  Materials 11.64%
Real Estate  Real Estate 0.00%
Utilities  Utilities 3.86%
Other  Other 0.00%
 
  Large Mid Small  
Growth  37.57% 3.36% 0.00%  
Value  54.48% 4.10% 0.00%  

 Style Weighting
Large-Cap Growth 37.57%
Large-Cap Value 54.48%
Mid-Cap Growth 3.36%
Mid-Cap Value 4.10%
Small-Cap Growth 0.00%
Small-Cap Value 0.00%
Undetermined 0.00%
 Composition
U.S. Stocks 87.46%   Bonds/Cash or Cash Equivalents 4.56%
Non-U.S. Stocks 12.05%   Other -4.07%
The style and sector characteristics of the portfolio are determined as of 07/22/2024 and will likely vary thereafter due to market fluctuations in the underlying securities.  

 Key Stats
Weighted Average Market Cap $185,486
Price/Earnings 19.49
Price/Book 3.49
Average Call Moneyness 20.60%
As of 7/22/2024
All market capitalization numbers are in USD$ Millions. Market cap and price ratio statistics are for the equity portion of the fund and exclude cash and options. Moneyness is how much an option contract's strike price is in-the-money (ITM) or out-of-the-money (OTM) expressed as a percentage of the price of the option contract's underlying asset. All figures are subject to change.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolSectorStyleWeighting
 International Business Machines Corporation IBM Information Technology  Information Technology Large-Cap Growth 4.88%
 Chubb Limited CB Financials  Financials Large-Cap Value 4.65%
 McDonald's Corporation MCD Consumer Discretionary  Consumer Discretionary Large-Cap Growth 4.60%
 AbbVie Inc. ABBV Health Care  Health Care Large-Cap Growth 4.60%
 The Procter & Gamble Company PG Consumer Staples  Consumer Staples Large-Cap Growth 4.46%
 Automatic Data Processing, Inc. ADP Industrials  Industrials Large-Cap Growth 4.40%
 Walmart Inc. WMT Consumer Staples  Consumer Staples Large-Cap Growth 4.35%
 Nucor Corporation NUE Materials  Materials Large-Cap Value 4.33%
 Lowe's Companies, Inc. LOW Consumer Discretionary  Consumer Discretionary Large-Cap Growth 4.26%
 Emerson Electric Co. EMR Industrials  Industrials Large-Cap Value 4.16%
 Aflac Incorporated AFL Financials  Financials Large-Cap Value 4.16%
 Chevron Corporation CVX Energy  Energy Large-Cap Value 4.16%
 The J.M. Smucker Company SJM Consumer Staples  Consumer Staples Mid-Cap Value 4.10%
 Johnson & Johnson JNJ Health Care  Health Care Large-Cap Value 4.09%
 Exxon Mobil Corporation XOM Energy  Energy Large-Cap Value 4.06%
 Target Corporation TGT Consumer Staples  Consumer Staples Large-Cap Value 4.00%
 Linde Plc LIN Materials  Materials Large-Cap Value 3.91%
 NextEra Energy, Inc. NEE Utilities  Utilities Large-Cap Value 3.86%
 Abbott Laboratories ABT Health Care  Health Care Large-Cap Value 3.66%
 Medtronic Plc MDT Health Care  Health Care Large-Cap Value 3.49%
 PPG Industries, Inc. PPG Materials  Materials Large-Cap Value 3.40%
 Cardinal Health, Inc. CAH Health Care  Health Care Mid-Cap Growth 3.36%
 Caterpillar Inc. CAT Industrials  Industrials Large-Cap Growth 3.05%
 PepsiCo, Inc. PEP Consumer Staples  Consumer Staples Large-Cap Growth 2.97%
 General Dynamics Corporation GD Industrials  Industrials Large-Cap Value 2.55%
 2026-01-16 PepsiCo, Inc. C 220     -0.03%
 2026-01-16 General Dynamics Corporation C 360     -0.07%
 2026-01-16 Medtronic Plc C 100     -0.09%
 2026-01-16 Chevron Corporation C 200     -0.11%
 2026-01-16 PPG Industries, Inc. C 165     -0.11%
 2026-01-16 The Procter & Gamble Company C 200     -0.12%
 2026-01-16 Exxon Mobil Corporation C 145     -0.13%
 2026-01-16 McDonald's Corporation C 325     -0.14%
 2026-01-16 Johnson & Johnson C 180     -0.14%
 2026-01-16 Cardinal Health, Inc. C 120     -0.16%
 2026-01-16 Abbott Laboratories C 125     -0.17%
 2026-01-16 Automatic Data Processing, Inc. C 300     -0.18%
 2026-01-16 Linde Plc C 530     -0.18%
 2026-01-16 Caterpillar Inc. C 430     -0.21%
 2026-01-16 NextEra Energy, Inc. C 90     -0.22%
 2026-01-16 The J.M. Smucker Company C 140     -0.23%
 2026-01-16 Chubb Limited C 310     -0.24%
 2026-01-16 Emerson Electric Co. C 140     -0.25%
 2026-01-16 Target Corporation C 195     -0.26%
 2026-01-16 Nucor Corporation C 210     -0.29%
 2026-01-16 Aflac Incorporated C 105     -0.29%
 2026-01-16 AbbVie Inc. C 195     -0.30%
 2026-01-16 Lowe's Companies, Inc. C 280     -0.32%
 2026-01-16 International Business Machines Corporation C 200     -0.41%
 2026-01-16 Walmart Inc. C 75     -0.42%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 3.25%, due 08/31/2024
1.14%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 4.50%, due 11/30/2024
1.14%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 4.625%, due 02/28/2025
1.14%
 Name of Issuer and Title of Treasury Obligation
 U.S. Treasury Note, 4.25%, due 05/31/2025
1.14%
 
Total Number of Holdings:    54
Underlying Securities information represented above is as of 07/22/2024 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.07500 August 20, 2024
$0.07500 September 20, 2024
$0.07500 October 18, 2024

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.

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.

COVID-19 Economic Impact Risk. 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.

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.

LEAPS Risk. The value of the LEAPS is deducted from the value of the portfolio assets when determining the value of a unit. As the value of the LEAPS increases, it has a more negative impact on the value of the units. The value of the LEAPS will also be affected by changes in the value and dividend rates of the underlying stocks, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the stocks and the remaining time to expiration. Additionally, the value of the LEAPS does not increase or decrease at the same rate as the underlying stock. However, as the LEAPS approach their expiration date, their value increasingly moves with the price of the stock.

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.

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.

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.

The style and capitalization characteristics used to describe the stocks are designed to help you understand how they fit into your overall investment plan. Due to changes in the value of the stocks the characteristics may vary over time. In general, growth stocks have high relative price-to-book ratios while value stocks have low relative price-to-book ratios. In determining market capitalization characteristics, we analyze the market capitalizations of the 3,000 largest stocks in the U.S. (excluding foreign securities, ADRs, limited partnerships and regulated investment companies) on a monthly basis. Companies with market capitalizations among the largest 10% are considered Large-Cap securities, the next 20% are considered Mid-Cap securities and the remaining securities are considered Small-Cap securities.

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.

The S&P 500 Dividend Aristocrats Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by First Trust Portfolios L.P. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by First Trust Portfolios L.P. This product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Dividend Aristocrats Index.

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
30335M542 (Cash)
30335M559 (Cash-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.
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First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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