Limited Duration Fixed Income ETF, Series 60
Ticker Symbol: FJENLX
25 Holdings (As of Day of Deposit) |
Ticker |
Name |
Initial
Weight |
Price* |
High-Yield Bond Funds |
SHYG |
iShares 0-5 Year High Yield Corporate Bond ETF |
4% |
$42.86 |
USHY |
iShares Broad USD High Yield Corporate Bond ETF |
4% |
37.09 |
HYDB |
iShares High Yield Systematic Bond ETF |
4% |
47.29 |
HYS |
PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund |
4% |
94.27 |
JNK |
SPDR Bloomberg Barclays High Yield Bond ETF |
4% |
96.33 |
SJNK |
SPDR Bloomberg Short Term High Yield Bond ETF |
4% |
25.38 |
SPHY |
SPDR Portfolio High Yield Bond ETF |
4% |
23.69 |
Income & Preferred Stock Funds |
PFFV |
Global X Variable Rate Preferred ETF |
4% |
23.71 |
VRP |
Invesco Variable Rate Preferred ETF |
4% |
24.08 |
Investment Grade Bond Funds |
IGSB |
iShares Trust iShares 1-5 Year Investment Grade Corporate Bond ETF |
4% |
52.07 |
SCHJ |
Schwab 1-5 Year Corporate Bond ETF |
4% |
49.09 |
FLRN |
SPDR Bloomberg Investment Grade Floating Rate ETF |
4% |
30.78 |
SPIB |
SPDR Portfolio Intermediate Term Corporate Bond ETF |
4% |
33.31 |
SPSB |
SPDR Portfolio Short Term Corporate Bond ETF |
4% |
30.01 |
FLTR |
VanEck IG Floating Rate ETF |
4% |
25.41 |
Loan Participation Funds |
FLBL |
Franklin Senior Loan ETF |
4% |
24.23 |
BKLN |
Invesco Senior Loan ETF |
4% |
20.89 |
FLRT |
Pacer Pacific Asset Floating Rate High Income ETF |
4% |
47.66 |
SRLN |
SPDR Blackstone Senior Loan ETF |
4% |
41.59 |
SEIX |
Virtus Seix Senior Loan ETF |
4% |
23.90 |
U.S. Government Bond Funds |
TFLO |
iShares Treasury Floating Rate ETF |
4% |
50.56 |
USFR |
WisdomTree Floating Rate Treasury Fund |
4% |
50.40 |
U.S. Mortgage Bond Fund |
JMBS |
Janus Henderson Mortgage-Backed Securities ETF |
4% |
46.16 |
World Income Funds |
CEMB |
iShares J.P. Morgan EM Corporate Bond ETF |
4% |
45.37 |
JPIB |
JPMorgan International Bond Opportunities ETF |
4% |
48.20 |
*As of the close of business on 8/19/24
Market values are for reference only and are not indicative of your individual
cost basis.
Not FDIC Insured Not Bank Guaranteed May Lose Value |
Portfolio Summary |
Initial Date of Deposit |
8/20/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
8/20/2026 |
Historical 12-Month Distribution Rate of Trust Holdings:* |
5.80% |
Historical 12-Month Distribution Per Unit:* |
$0.5798 |
Cash
CUSIP |
30337H566 |
Reinvestment
CUSIP |
30337H574 |
Fee Account Cash CUSIP |
30337H582 |
Fee Account Reinvestment CUSIP |
30337H590 |
*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. 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 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.
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 |
0.340% |
0.340% |
|
|
|
Operating Expenses |
0.218% |
0.218% |
Acquired Fund Fees and Expenses^ |
0.318% |
0.318% |
Estimated Annual Trust Operating Expenses |
0.536% |
0.536% |
^Although not actual trust operating expenses, the trust, and therefore unit holders, will indirectly bear
similar operating expenses of the funds in which the trust invests. These expenses are estimated and are
subject to change in the future.
The deferred sales charge will be deducted in three monthly installments commencing 11/20/24. 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.
Risk Considerations
An investment in this unmanaged unit
investment trust should be made with an understanding of the risks
involved with owning ETFs and fixed-income securities.
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 of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the
interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest
rate benchmark. As a result, the yield on such a security will generally decline in a falling interest rate
environment, causing the trust to experience a reduction in the income it receives from such securities.
Certain of the funds invest in high-yield securities or “junk” bonds. Investing in high-yield securities 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.
All of the funds invest in investment grade securities. Investment grade securities are subject to numerous
risks including higher interest rates, economic recession, deterioration of the investment grade market or
investors’ perception thereof, possible downgrades and defaults of interest and/or principal.
A significant percentage of the funds invest in limited duration bonds. Limited duration bonds are subject to
interest rate risk, which is the risk that the value of a security will fall if interest rates increase. While limited
duration bonds are generally subject to less interest rate sensitivity than longer duration bonds, there can be
no assurance that interest rates will not rise during the life of the trust.
Certain of the funds invest in senior loans. The yield on funds which invest in 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.
Certain of the funds invest in covenant-lite loans which contain fewer or no maintenance covenants and
may hinder the funds’ ability to reprice credit risk and mitigate potential loss especially during a downturn
in the credit cycle.
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.
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.
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.
For a discussion of additional risks of investing in the trust see the “Risk
Factors” section of the prospectus.