Defensive Equity Buy-Write, Series 11
Ticker Symbol: FRSMYX
54 Holdings (As of Day of Deposit) |
Ticker |
Company Name |
Initial
Weight |
Price1 |
Equity Securities |
ABBV |
AbbVie Inc. |
4.03% |
$175.27 |
AES |
The AES Corporation |
4.14% |
16.89 |
AEP |
American Electric Power Company, Inc. |
4.30% |
93.52 |
AMGN |
Amgen Inc. |
3.86% |
335.67 |
BSX |
Boston Scientific Corporation |
4.15% |
77.41 |
STZ |
Constellation Brands, Inc. |
3.80% |
248.23 |
COST |
Costco Wholesale Corporation |
3.24% |
846.28 |
ELV |
Elevance Health Inc. |
3.99% |
520.93 |
LLY |
Eli Lilly and Company |
3.47% |
905.59 |
HCA |
HCA Healthcare, Inc. |
3.71% |
322.98 |
KDP |
Keurig Dr Pepper Inc. |
4.18% |
33.08 |
KHC |
The Kraft Heinz Company |
4.16% |
33.90 |
MCK |
McKesson Corporation |
4.46% |
582.06 |
MDLZ |
Mondelez International, Inc. |
4.12% |
67.12 |
NEE |
NextEra Energy, Inc. |
4.08% |
70.90 |
NVO |
Novo Nordisk A/S |
4.15% |
135.42 |
PEP |
PepsiCo, Inc. |
3.91% |
169.89 |
PCG |
PG&E Corporation |
4.19% |
17.94 |
PG |
The Procter & Gamble Company |
3.90% |
169.44 |
REGN |
Regeneron Pharmaceuticals, Inc. |
4.16% |
1,085.62 |
TMO |
Thermo Fisher Scientific Inc. |
4.25% |
555.06 |
UNH |
UnitedHealth Group Incorporated |
4.39% |
573.28 |
VRTX |
Vertex Pharmaceuticals Incorporated |
3.74% |
488.37 |
VST |
Vistra Corp. |
4.09% |
76.20 |
WMT |
Walmart Inc. |
4.08% |
71.03 |
Description of Call Options |
|
Call Premium2 |
LEAPS |
ABBV |
01/16/26 AbbVie Inc. C 210 |
-0.16% |
$695.00 |
AES |
01/16/26 The AES Corporation C 20 |
-0.43% |
177.00 |
AEP |
01/16/26 American Electric Power Company, Inc. C 115 |
-0.09% |
190.00 |
AMGN |
01/16/26 Amgen Inc. C 410 |
-0.21% |
1,860.00 |
BSX |
01/16/26 Boston Scientific Corporation C 95 |
-0.20% |
370.00 |
STZ |
01/16/26 Constellation Brands, Inc. C 300 |
-0.15% |
990.00 |
COST |
01/16/26 Costco Wholesale Corporation C 1,020 |
-0.22% |
5,787.00 |
ELV |
01/16/26 Elevance Health Inc. C 630 |
-0.18% |
2,400.00 |
LLY |
01/16/26 Eli Lilly and Company C 1,100 |
-0.33% |
8,706.00 |
HCA |
01/16/26 HCA Healthcare, Inc. C 390 |
-0.27% |
2,310.00 |
KDP |
01/16/26 Keurig Dr Pepper Inc. C 40 |
-0.13% |
105.00 |
KHC |
01/16/26 The Kraft Heinz Company C 42.50 |
-0.14% |
118.00 |
MCK |
01/16/26 McKesson Corporation C 700 |
-0.24% |
3,110.00 |
MDLZ |
01/16/26 Mondelez International, Inc. C 80 |
-0.16% |
260.00 |
NEE |
01/16/26 NextEra Energy, Inc. C 85 |
-0.29% |
510.00 |
NVO |
01/16/26 Novo Nordisk A/S C 165 |
-0.40% |
1,310.00 |
PEP |
01/16/26 PepsiCo, Inc. C 210 |
-0.07% |
309.00 |
PCG |
01/16/26 PG&E Corporation C 22 |
-0.04% |
17.00 |
PG |
01/16/26 The Procter & Gamble Company C 200 |
-0.10% |
425.00 |
REGN |
01/16/26 Regeneron Pharmaceuticals, Inc. C 1,320 |
-0.30% |
7,700.00 |
TMO |
01/16/26 Thermo Fisher Scientific Inc. C 670 |
-0.24% |
3,090.00 |
UNH |
01/16/26 UnitedHealth Group Incorporated C 700 |
-0.23% |
3,005.00 |
VRTX |
01/16/26 Vertex Pharmaceuticals Incorporated C 600 |
-0.29% |
3,740.00 |
VST |
01/16/26 Vistra Corp. C 92.50 |
-0.82% |
1,520.00 |
WMT |
01/16/26 Walmart Inc. C 85 |
-0.20% |
350.00 |
Treasury Obligations |
U.S. Treasury Note, 4.375%, due 10/31/2024 |
1.34% |
|
U.S. Treasury Note, 4.125%, due 01/31/2025 |
1.33% |
|
U.S. Treasury Note, 3.875%, due 04/30/2025 |
1.33% |
|
U.S. Treasury Note, 4.75%, due 07/31/2025 |
1.34% |
|
1 As of the close of business on 7/17/24.
Market values are for reference only and are not indicative of your individual
cost basis.
2 Represents market value per contract. Each contract entitles the
holder to purchase 100 shares of common stock at the strike price.
Not FDIC Insured Not Bank Guaranteed May Lose Value |
Portfolio Summary |
Initial Date of Deposit |
7/18/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
1/21/2026 |
CUSIP |
30337D169 |
Fee Account Cash CUSIP |
30337D177 |
Estimated Strike Price of the LEAPS as a % of the
Market Price of the Common Stocks* |
121.23% |
Historical 12-Month Distribution Rate of Trust Holdings** |
1.39% |
Historical 12-Month Distribution Per Unit** |
$0.1393 |
Distributions from Treasury Obligations: |
|
First 12 Months Principal Distribution Per Unit*** |
$0.4023 |
Subsequent Months Principal Distribution Per Unit*** |
$0.1341 |
Total Principal Distribution Per Unit*** |
$0.5364 |
*All of the LEAPS are out-of-the-money as of the initial date of deposit.
**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 12-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 12 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.
***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.
Fee Table (based on a $10 public offering
price per unit) |
|
Standard |
Fee/Wrap |
Deferred Sales Charge |
1.35% |
— |
Creation & Development Fee (C&D Fee) |
0.50% |
0.50% |
Maximum Sales Charge |
1.85% |
0.50% |
|
|
|
Estimated Organization Costs |
0.510% |
0.510% |
Estimated Annual Trust Operating Expenses |
0.215% |
0.215% |
The deferred sales charge will be deducted in three monthly installments commencing 10/18/24. When
the public offering price is less than or equal to $10.00 per unit, there will be no initial sales charge. If the
price exceeds $10.00 per unit, you will pay an initial sales charge. The C&D fee is a charge of $0.050 per unit
collected at the end of the initial offering period. If the price you pay exceeds $10.00 per unit, the C&D fee
will be less than 0.50%; if the price you pay is less than $10.00 per unit, the C&D fee will exceed 0.50%.
Estimated organization costs will be deducted from the assets of the trust at the end of the initial offering
period. Estimated organization costs and trust operating expenses are assessed on a fixed dollar amount per
unit basis which, as a percentage of average net assets, will vary over time. Actual expenses may be more or
less than the estimates. Please see “Fee Table” in the trust prospectus for additional information.
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.
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. The S&P Dividend Aristocrats Buy-Write Portfolio 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.
Risk Considerations
An investment in this unmanaged unit investment trust should be made
with the understanding of the risks involved with common stocks, LEAPS, and U.S. Treasury notes.
Common stocks are subject to 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.
The value of U.S. Treasury notes will be adversely affected by decreases in bond prices and
increases in interest rates.
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.
You should be aware that the portfolio is concentrated in stocks in both the consumer staples and health
care sectors which involves additional risks, including limited diversification. The companies engaged in the
consumer staples industry are subject to global competition, changing government regulations and trade
policies, currency fluctuations, and the financial and political risks inherent in producing products for foreign
markets. The companies engaged in the health care sector are subject to fierce competition, high research
and development costs, governmental regulations, loss of patent protection, and changing consumer
spending trends. In addition, health crises, such as a pandemic outbreak, can severely impact the health
care industry in particular.
The portfolio also invests in utilities companies. The companies engaged in the utilities sector are subject to
certain risks, including price and supply fluctuations caused by international politics, energy conservation,
taxes, and other regulatory policies of various governments.
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.
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.
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.