The S&P Target 24 Portfolio, 3rd Quarter 2024 Series
The Strategy
This unit investment trust which invests in a fixed
portfolio of stocks for approximately 15 months. The stocks
are selected by applying a disciplined investment strategy
which adheres to pre-determined screens and factors.
The strategy is based on these steps:
- We begin with the companies listed in the S&P 500 Index.
- The economic sectors in the index are ranked by market capitalization
- the eight largest are selected.
- The stocks in each of the eight largest sectors are ranked
among their peers on three factors:
- Trailing four quarters' return on assets.
- Buyback yield - the percentage decrease in a company's outstanding
common shares versus one year earlier.
- Bullish interest indicator - a comparison, over the past twelve
months, between the number of a company's shares that traded in months
when the stock price rose versus the number of shares that traded in months
when the stock price fell.
- The three stocks from each of the eight sectors with the highest
combined ranking on the above factors are selected for the portfolio. The
stocks are weighted according to their market capitalization relative to their
sector and relative to their peers within the sector.
If this strategy had been applied since 1986, investors would have realized
higher total returns than by investing in the entire S&P 500 Index. It is important
to note that the past performance of the strategy is hypothetical and it is
not indicative of the future performance of the S&P Target 24 Portfolio. Although
this unit investment trust terminates in approximately 15 months, the strategy
is long-term. Investors should consider their ability to pursue investing in
successive portfolios, if available. There may be tax consequences unless units
are purchased in an IRA or other qualified plan.
Portfolio Objective
This unit investment trust seeks above-average total
return; however, there is no assurance the objective will
be met.
| Not FDIC Insured • Not Bank Guaranteed • May Lose Value |
| Standard Deviations* |
Average Annual Total Returns* |
|
S&P 500
Index |
Strategy |
S&P 500
Index |
Strategy |
| Since 1986 |
15.38% |
16.46% |
10.95% |
11.63% |
| 25 years |
15.37% |
16.25% |
7.55% |
8.40% |
| 20 years |
14.88% |
15.52% |
9.68% |
9.14% |
| 15 years |
15.36% |
16.11% |
13.95% |
13.37% |
| 10 years |
15.18% |
16.57% |
12.01% |
11.62% |
| 5 years |
18.51% |
20.61% |
15.66% |
18.22% |
| 3 years |
17.53% |
20.07% |
9.97% |
10.01% |
| *Through 12/29/23 |
| Annual Total Returns |
| Year |
S&P 500
Index |
Strategy |
| 1986 |
18.67% |
19.51% |
| 1987 |
5.25% |
1.90% |
| 1988 |
16.56% |
4.46% |
| 1989 |
31.62% |
22.50% |
| 1990 |
-3.19% |
6.60% |
| 1991 |
30.33% |
40.52% |
| 1992 |
7.61% |
-1.63% |
| 1993 |
10.04% |
8.20% |
| 1994 |
1.30% |
4.96% |
| 1995 |
37.50% |
39.14% |
| 1996 |
22.89% |
31.43% |
| 1997 |
33.31% |
30.23% |
| 1998 |
28.55% |
39.98% |
| 1999 |
21.03% |
41.30% |
| 2000 |
-9.10% |
4.01% |
| 2001 |
-11.88% |
-10.90% |
| 2002 |
-22.09% |
-19.10% |
| 2003 |
28.65% |
23.29% |
| 2004 |
10.87% |
13.72% |
| 2005 |
4.90% |
3.79% |
| 2006 |
15.76% |
1.58% |
| 2007 |
5.56% |
3.32% |
| 2008 |
-36.99% |
-29.28% |
| 2009 |
26.46% |
12.23% |
| 2010 |
15.08% |
18.28% |
| 2011 |
2.08% |
7.05% |
| 2012 |
15.98% |
8.11% |
| 2013 |
32.36% |
42.43% |
| 2014 |
13.66% |
7.17% |
| 2015 |
1.38% |
2.17% |
| 2016 |
11.93% |
0.75% |
| 2017 |
21.80% |
19.44% |
| 2018 |
-4.39% |
-1.34% |
| 2019 |
31.45% |
34.03% |
| 2020 |
18.39% |
29.39% |
| 2021 |
28.67% |
31.94% |
| 2022 |
-18.12% |
-19.81% |
| 2023 |
26.24% |
25.84% |
| 3/28/24 |
10.55% |
3.21% |
Past performance is no guarantee of future results and the actual current
performance of the portfolio may be lower or higher than the hypothetical performance
of the strategy. Hypothetical returns for the strategy in certain years were
significantly higher than the returns of the S&P 500 Index. Hypothetical strategy
returns were the result of certain market factors and events which may not be
replicated in the future. You can obtain performance information which is current
through the most recent month-end by calling First Trust Portfolios L.P. at
1-800-621-1675 option 2. Investment return and principal value of the portfolio
will fluctuate causing units of the portfolio, when redeemed, to be worth more
or less than their original cost.
Simulated strategy returns are hypothetical, meaning that they do not represent actual trading, and, thus, may not reflect material economic and market factors, such as liquidity constraints, that may have had an impact on actual decision making. The hypothetical performance is the retroactive application of the strategy designed with the full benefit of hindsight. Strategy returns reflect a sales
charge of 1.85% and estimated annual operating expenses of 0.172%, plus organization costs, but not taxes or commissions paid by the portfolio to purchase securities. Returns assume that all dividends received during a year are reinvested monthly. Actual portfolio performance will vary from that of investing in the strategy stocks because it may not be weighted the same as the strategy stocks and may not be fully invested at all times. It is important to note that the strategy may underperform the S&P 500 Index in certain years and may produce negative results.
The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap
U.S. stock market performance. The index cannot be purchased directly by investors.
Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.
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, 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. In addition, the portfolio is heavily weighted in only a few stocks, making it
more volatile than an equally weighted portfolio.
You should be aware that the portfolio is concentrated in stocks in the information technology sector which
involves additional risks, including limited diversification. The companies engaged in the information
technology sector are subject to fierce competition, high research and development costs, and their products
and services may be subject to rapid obsolescence. Technology company stocks, especially those which are
Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their
operating performance.
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.
An investment in a portfolio containing mid-cap companies is subject to additional risks, as the share prices
of certain mid-cap companies are often more volatile than those of larger companies due to several factors,
including limited trading volumes, products, financial resources, management inexperience and less publicly
available information.
Large capitalization companies may grow at a slower rate than the overall market.
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.
The S&P 500 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 Target 24
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 Index.