Dividend Growers and Tax-Advantaged Income Portfolio, Series 40
Ticker Symbol: FGEWDX
40 Holdings (As of Day of Deposit) |
Ticker |
Name |
Initial
Weight |
Price* |
ETFs (75.02%) |
General Equity Funds (19.98%) |
DGRO |
iShares Core Dividend Growth ETF |
4.98% |
$57.01 |
SMDV |
ProShares Russell 2000 Dividend Growers ETF |
4.96% |
63.40 |
NOBL |
ProShares S&P 500 Dividend Aristocrats ETF |
5.00% |
98.56 |
VIG |
Vanguard Dividend Appreciation ETF |
5.04% |
178.82 |
Municipal Bond Funds (50.04%) |
HYMU |
BlackRock High Yield Muni Income Bond ETF |
5.01% |
22.41 |
FLMI |
Franklin Dynamic Municipal Bond ETF |
5.01% |
24.33 |
MMIN |
IQ Mackay Municipal Insured ETF |
5.00% |
24.14 |
MMIT |
IQ Mackay Municipal Intermediate ETF |
5.00% |
24.22 |
JMUB |
JPMorgan Municipal ETF |
5.01% |
50.45 |
MINO |
PIMCO Municipal Income Opportunities Active Exchange-Traded Fund |
5.02% |
45.33 |
SCMB |
Schwab Municipal Bond ETF |
4.99% |
51.69 |
HYMB |
SPDR Nuveen Bloomberg High Yield Municipal Bond ETF |
4.99% |
25.49 |
HYD |
VanEck High Yield Muni ETF |
5.01% |
51.83 |
MLN |
VanEck Long Muni ETF |
5.00% |
17.93 |
World Equity Fund (5.00%) |
IGRO |
iShares International Dividend Growth ETF |
5.00% |
66.89 |
Common Stocks (24.98%) |
AEP |
American Electric Power Company, Inc. |
1.01% |
89.87 |
AMGN |
Amgen Inc. |
1.06% |
300.30 |
BAC |
Bank of America Corporation |
0.99% |
37.84 |
OZK |
Bank OZK |
1.00% |
47.27 |
BBY |
Best Buy Co., Inc. |
0.98% |
73.06 |
BG |
Bunge Global S.A. |
1.03% |
104.35 |
CVX |
Chevron Corporation |
1.03% |
162.67 |
CMCSA |
Comcast Corporation |
1.00% |
38.49 |
CAG |
Conagra Brands, Inc. |
1.00% |
30.72 |
FANG |
Diamondback Energy, Inc. |
1.01% |
203.68 |
EWBC |
East West Bancorp, Inc. |
0.98% |
77.44 |
EOG |
EOG Resources, Inc. |
1.01% |
130.26 |
GPC |
Genuine Parts Company |
0.98% |
154.92 |
GS |
The Goldman Sachs Group, Inc. |
0.94% |
443.80 |
HD |
The Home Depot, Inc. |
0.96% |
340.69 |
HPQ |
HP Inc. |
1.00% |
28.41 |
IPG |
The Interpublic Group of Companies, Inc. |
1.00% |
30.96 |
KDP |
Keurig Dr Pepper Inc. |
1.00% |
33.81 |
LMT |
Lockheed Martin Corporation |
0.99% |
466.68 |
MS |
Morgan Stanley |
1.01% |
95.79 |
NI |
NiSource Inc. |
1.00% |
29.05 |
PCAR |
PACCAR Inc |
0.98% |
106.60 |
PSX |
Phillips 66 |
1.02% |
145.21 |
SNA |
Snap-on Incorporated |
0.98% |
276.86 |
TGT |
Target Corporation |
1.02% |
160.41 |
* As of the close of business on 5/7/24.
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 |
5/8/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
5/8/2026 |
Historical 12-Month Distribution Rate of Trust Holdings:* |
2.91% |
Historical 12-Month Distribution Per Unit:* |
$0.2910 |
Cash CUSIP |
30335M625 |
Reinvestment CUSIP |
30335M633 |
Fee Account Cash CUSIP |
30335M641 |
Fee Account Reinvestment CUSIP |
30335M658 |
*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.
Sales Charges (based on a $10 public offering
price) |
Standard Accounts |
Transactional Sales Charges |
Initial: |
0.00% |
|
Deferred: |
2.25% |
Creation & Development Fee (C&D Fee) |
|
0.50% |
Maximum Sales Charge: |
|
2.75% |
Fee/Wrap Accounts |
Maximum Sales Charge: |
|
0.50% |
The deferred sales charge will be deducted in three monthly installments commencing 8/20/24. 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 maximum sales charge for investors in fee
accounts consists of the C&D fee. Investors in fee accounts are not assessed any transactional sales charges.
Standard accounts sales charges apply to units purchased as an ineligible asset. 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%. In addition to the sales charges listed, UITs are subject to annual operating expenses and
organization costs.
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 common stocks and exchange-traded funds that
invest in municipal bonds.
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.
Common stocks are subject to 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.
Certain 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 security
market or investors’ perception thereof, possible downgrades and defaults of interest and/or principal.
Municipal bonds are subject to numerous risks, including higher interest rates, economic recession,
deterioration of the municipal bond market, possible downgrades and defaults of interest and/or principal.
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.