Dow 30 Buy-Write, Series 13
Ticker Symbol: FOASOX
64 Holdings (As of Day of Deposit) |
Ticker |
Company Name |
Initial
Weight |
Price1 |
Equity Securities |
MMM |
3M Company |
3.07% |
$139.18 |
AMZN |
Amazon.com, Inc. |
3.66% |
220.66 |
AXP |
American Express Company |
3.44% |
311.48 |
AMGN |
Amgen Inc. |
2.98% |
269.43 |
AAPL |
Apple Inc. |
3.78% |
228.26 |
BA |
The Boeing Company |
3.73% |
168.93 |
CAT |
Caterpillar Inc. |
4.20% |
380.55 |
CVX |
Chevron Corporation |
3.52% |
159.38 |
CSCO |
Cisco Systems, Inc. |
3.30% |
59.82 |
KO |
The Coca-Cola Company |
3.44% |
62.25 |
GS |
The Goldman Sachs Group, Inc. |
3.38% |
612.99 |
HD |
The Home Depot, Inc. |
2.26% |
409.33 |
HON |
Honeywell International Inc. |
3.69% |
222.69 |
IBM |
International Business Machines Corporation |
3.69% |
222.66 |
JNJ |
Johnson & Johnson |
3.26% |
147.77 |
JPM |
JPMorgan Chase & Co. |
1.40% |
254.27 |
MCD |
McDonald’s Corporation |
3.09% |
279.74 |
MRK |
Merck & Co., Inc. |
3.34% |
100.70 |
MSFT |
Microsoft Corporation |
2.34% |
424.58 |
NKE |
NIKE, Inc. |
3.53% |
71.11 |
NVDA |
NVIDIA Corporation |
3.69% |
133.57 |
PG |
The Procter & Gamble Company |
3.55% |
160.50 |
CRM |
Salesforce, Inc. |
3.53% |
320.00 |
SHW |
The Sherwin-Williams Company |
3.91% |
354.17 |
TRV |
The Travelers Companies, Inc. |
4.02% |
242.37 |
UNH |
UnitedHealth Group Incorporated |
2.82% |
510.59 |
VZ |
Verizon Communications Inc. |
3.39% |
38.34 |
V |
Visa Inc. |
3.50% |
317.25 |
WMT |
Walmart Inc. |
3.53% |
91.30 |
DIS |
The Walt Disney Company |
3.53% |
106.46 |
Description of Call Options |
|
Call Premium2 |
LEAPS |
MMM |
01/15/27 3M Company C 170 |
-0.28% |
$1,255.00 |
AMZN |
01/15/27 Amazon.com, Inc. C 270 |
-0.49% |
2,940.00 |
AXP |
01/15/27 American Express Company C 380 |
-0.33% |
2,965.00 |
AMGN |
01/15/27 Amgen Inc. C 330 |
-0.21% |
1,880.00 |
AAPL |
01/15/27 Apple Inc. C 280 |
-0.31% |
1,884.00 |
BA |
01/15/27 The Boeing Company C 210 |
-0.52% |
2,370.00 |
CAT |
01/15/27 Caterpillar Inc. C 460 |
-0.36% |
3,275.00 |
CVX |
01/15/27 Chevron Corporation C 195 |
-0.15% |
670.00 |
CSCO |
01/15/27 Cisco Systems, Inc. C 75 |
-0.14% |
246.00 |
KO |
01/15/27 The Coca-Cola Company C 75 |
-0.12% |
212.00 |
GS |
01/15/27 The Goldman Sachs Group, Inc. C 740 |
-0.26% |
4,680.00 |
HD |
01/15/27 The Home Depot, Inc. C 500 |
-0.14% |
2,558.00 |
HON |
01/15/27 Honeywell International Inc. C 270 |
-0.31% |
1,860.00 |
IBM |
01/15/27 International Business Machines Corporation C 270 |
-0.27% |
1,650.00 |
JNJ |
01/15/27 Johnson & Johnson C 180 |
-0.11% |
505.00 |
JPM |
01/15/27 JPMorgan Chase & Co. C 310 |
-0.09% |
1,565.00 |
MCD |
01/15/27 McDonald's Corporation C 340 |
-0.15% |
1,350.00 |
MRK |
01/15/27 Merck & Co., Inc. C 120 |
-0.22% |
670.00 |
MSFT |
01/15/27 Microsoft Corporation C 520 |
-0.21% |
3,857.00 |
NKE |
01/15/27 NIKE, Inc. C 87.50 |
-0.39% |
780.00 |
NVDA |
01/15/27 NVIDIA Corporation C 165 |
-0.85% |
3,070.00 |
PG |
01/15/27 The Procter & Gamble Company C 195 |
-0.12% |
535.00 |
CRM |
01/15/27 Salesforce, Inc. C 390 |
-0.48% |
4,380.00 |
SHW |
01/15/27 The Sherwin-Williams Company C 430 |
-0.27% |
2,450.00 |
TRV |
01/15/27 The Travelers Companies, Inc. C 290 |
-0.26% |
1,600.00 |
UNH |
01/15/27 UnitedHealth Group Incorporated C 620 |
-0.29% |
5,180.00 |
VZ |
01/15/27 Verizon Communications Inc. C 47 |
-0.14% |
159.00 |
V |
01/15/27 Visa Inc. C 390 |
-0.19% |
1,750.00 |
WMT |
01/15/27 Walmart Inc. C 110 |
-0.30% |
765.00 |
DIS |
01/15/27 The Walt Disney Company C 130 |
-0.35% |
1,045.00 |
Treasury Obligations |
U.S. Treasury Note, 3.875%, due 04/30/2025 |
1.93% |
|
U.S. Treasury Note, 4.75%, due 07/31/2025 |
1.94% |
|
U.S. Treasury Note, 5%, due 10/31/2025 |
1.94% |
|
U.S. Treasury Note, 4.25%, due 01/31/2026 |
1.93% |
|
1 As of the close of business on 1/16/25.
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 |
1/17/2025 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
1/20/2027 |
CUSIP |
30339C409 |
Fee Account Cash CUSIP |
30339C417 |
Estimated Strike Price of the LEAPS as a % of the
Market Price of the Common Stocks* |
121.93% |
Historical 12-Month Distribution Rate of Trust Holdings** |
1.59% |
Historical 12-Month Distribution Per Unit** |
$0.1586 |
Distributions from Treasury Obligations: |
|
First 12 Months Principal Distribution Per Unit*** |
$0.5797 |
Subsequent Months Principal Distribution Per Unit*** |
$0.1932 |
Total Principal Distribution Per Unit*** |
$0.7729 |
*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 |
2.25% |
— |
Creation & Development Fee (C&D Fee) |
0.50% |
0.50% |
Maximum Sales Charge |
2.75% |
0.50% |
|
|
|
Estimated Organization Costs |
0.710% |
0.710% |
Estimated Annual Trust Operating Expenses |
0.218% |
0.218% |
The deferred sales charge will be deducted in three monthly installments commencing 4/17/25. 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 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 portfolio. Read it carefully
before you invest.
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.
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.
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.
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.