Nasdaq^® Dividend Achievers 25 Portfolio, Series 38

The Nasdaq^® Dividend Achievers 25 Portfolio is a unit investment trust which is based on the Nasdaq US Broad Dividend Achievers Index^TM. The index is designed to measure the performance of companies with at least ten consecutive years of increasing annual regular dividend payments. The index includes many companies that are familiar household names and has exposure to all major sectors of the market.

Investing in dividend-paying stocks is a time-tested strategy that provides an attractive combination of income and capital appreciation potential. Since corporations are not obligated to share their earnings with stockholders, dividends may be viewed as a sign of a company’s profitability as well as management’s assessment of the future. Dividend distributions can offer more than just an income boost, they can potentially help to offset losses in down markets. Additionally, reinvesting dividends has the potential to be a powerful strategy in an investor’s portfolio.

The Nasdaq^® Dividend Achievers 25 Portfolio invests in companies from the index using a selection process that seeks to identify companies with the potential to provide above-average total return by favoring dividend growth over high yields.

Portfolio Selection Process

Identify the Universe | We begin with the companies listed in the Nasdaq US Broad Dividend Achievers Index^TM.

Screen the Universe | We then evaluate companies based on multiple factors. These factors are designed to identify companies with dividend growth potential.

Select the Portfolio | The final step is to select the 25 highest-yielding stocks for the portfolio. The stocks are approximately equally weighted within the portfolio.

Portfolio Objective

This unit investment trust seeks above-average total return through a combination of capital appreciation and dividend income; however, there is no assurance the objective will be met.

You should consider the portfolio's investment objective, 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.

Nasdaq^® and NASDAQ US Broad Dividend Achievers Index^TM are registered trademarks of Nasdaq, Inc. (which with its affiliates are the Corporations) and are licensed for use by First Trust Portfolios L.P. The portfolio has not been passed on by the Corporations as to its legality or suitability. The portfolio is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PORTFOLIO.

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.

You should be aware that the portfolio is concentrated in stocks in the financials sector which involves additional risks, including limited diversification. The companies engaged in the financials sector are subject to the adverse effects of volatile interest rates, economic recession, decreases in the availability of capital, increased competition from new entrants in the field, and potential increased regulation.

An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as the share prices of small-cap companies and 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.