FT Moderate Buffer ETF Allocation Portfolio, Series 2

This unit investment trust (UIT) seeks capital appreciation by investing in a portfolio of Target Outcome Buffer ETFs (exchange-traded funds); however, there is no assurance the objective will be met. Buffer ETFs seek to provide targeted exposure to the price returns of an underlying reference asset that is based on a market index, while providing predetermined investment outcomes, removing some of the uncertainty of investing.

Although this UIT does not directly provide a defined buffer, each ETF in the portfolio is structured to offer a 15% downside buffer (before fees and expenses), with potential upside gains capped at a predetermined level. Additionally, the UIT provides broad market exposure across multiple investable markets.

How Buffer ETFs work

Buffer ETFs are designed to offer equity investors a limited level of protection, or “buffer,” against downturns in the market, while still allowing for growth during up markets, up to a specified “cap.” These predetermined outcome values are set over a defined “Target Outcome” period. At the end of the Target Outcome Period, the Buffer ETF “resets” its cap and refreshes its buffer at prevailing market conditions.

Why Consider This UIT?

A Turnkey Approach

Each Buffer ETF held in the portfolio provides a unique balance of risk and growth potential, and this UIT simplifies the implementation of these strategies with a one-ticket approach. The ETFs included in the portfolio are advised by First Trust Advisors L.P., (“First Trust”) an affiliate of the trust’s sponsor. The First Trust Buffer ETFs are available in different monthly vintages, meaning different ETFs refresh their one-year Target Outcome Period and reset their caps and buffers each month. The diagram below illustrates how a portfolio of multiple Buffer ETFs would each have different cap and buffer levels and would reset in different months, creating diversification of the investment time period compared to owning just one Buffer ETF.

You should consider the portfolio's investment objective, risks, and charges and expenses carefully before investing. Contact your financial advisor or call First Trust Portfolios, L.P. 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 associated with an investment in a portfolio of ETFs which invest in FLEX Options based on an underlying ETF.

The portfolio has characteristics unlike many other traditional investment products and may not be appropriate for all investors.

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.

The ETFs included in this portfolio hold purchased and written FLEX Options. The FLEX Options are European style options, which are exercisable at the strike price only on the FLEX Option expiration date. The FLEX Options held by the funds give the option holder the right to buy or sell the underlying ETF on the FLEX Option expiration date at the strike price. The value of the FLEX Options prior to their expiration on the FLEX Option expiration date may vary because of factors other than fluctuations in the value of the underlying ETF. The value of FLEX Options will be affected by changes in the value of the underlying ETF, the underlying index and its underlying securities, a change in interest rates, a change in the expected dividend rate of the underlying ETF, a change in the actual and perceived volatility of the stock market and the underlying index and the remaining time to expiration. Additionally, the value of the FLEX Options does not increase or decrease at the same rate as the underlying ETF, the underlying index or its underlying securities due to “tracking error” as described in more detail in the full prospectus (although they generally move in the same direction).

Funds held by the trust may invest in derivatives such as swap agreements to gain inverse exposure to its target index. As such, the funds will be subject to credit risk with respect to the amount it expects to receive from counterparties to derivatives and repurchase agreements entered into by the funds. If a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the value of the trust’s investment in the funds may decline.

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 organization 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.

The funds included in this UIT are not sponsored, endorsed, sold or promoted by SPDR^® S&P 500^® ETF Trust, PDR, or Standard & Poor’s^®, Invesco QQQ Trust^SM, Series 1, Invesco, or Nasdaq, Inc., MSCI EAFE ETF, BFA, or MSCI Inc., iShares Russell 2000 ETF, BFA or Russell (together with their affiliates hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the funds or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by the fund or the FLEX Options, shareholders or any other person or entity from use of the SPDR^® S&P 500^® ETF Trust, Invesco QQQ Trust^SM, iShares MSCI, EAFE ETF or iShares Russell 2000 ETF. The Corporations have no liability in connection with the management, administration, marketing or trading of the funds or the FLEX Options.