Target Growth Portfolio, 1st Quarter 2025 Series
The Strategy
This unit investment trust 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:
- Begin with all stocks traded on a U.S. exchange and screen for the following:
- Minimum market capitalization of $6 billion.
- Minimum three month average daily trading volume of $5 million.
- Minimum stock price of $5.
- Eliminate REITs, ADRs, regulated investment companies
and limited partnerships.
- Select only those stocks with positive one year sales growth.
- Rank the remaining stocks on three equally weighted factors:
- Sustainable growth rate.
- Change in return on assets.
- Recent 6-month price appreciation.
- Purchase an approximately equally weighted portfolio
of the 30 stocks with the highest combined ranking on
the three factors, subject to a maximum of six stocks
from any one of the major GICS® market sectors. The
financials and real estate sectors are combined for the
sector limit purpose.
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 Target Growth 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 1995 |
15.32% |
19.06% |
10.45% |
10.45% |
| 25 years |
15.37% |
19.04% |
7.55% |
7.17% |
| 20 years |
14.88% |
19.15% |
9.68% |
6.32% |
| 15 years |
15.36% |
18.21% |
13.95% |
9.23% |
| 10 years |
15.18% |
18.68% |
12.01% |
7.93% |
| 5 years |
18.51% |
22.55% |
15.66% |
11.43% |
| 3 years |
17.53% |
24.16% |
9.97% |
1.69% |
| *Through 12/29/23 |
| Annual Total Returns |
| Year |
S&P 500
Index |
Strategy
|
| 1995 |
37.50% |
30.86% |
| 1996 |
22.89% |
24.90% |
| 1997 |
33.31% |
41.04% |
| 1998 |
28.55% |
37.08% |
| 1999 |
21.03% |
33.71% |
| 2000 |
-9.10% |
8.32% |
| 2001 |
-11.88% |
-4.26% |
| 2002 |
-22.09% |
-10.84% |
| 2003 |
28.65% |
33.93% |
| 2004 |
10.87% |
16.66% |
| 2005 |
4.90% |
17.04% |
| 2006 |
15.76% |
16.77% |
| 2007 |
5.56% |
19.88% |
| 2008 |
-36.99% |
-52.55% |
| 2009 |
26.46% |
18.13% |
| 2010 |
15.08% |
17.08% |
| 2011 |
2.08% |
-12.57% |
| 2012 |
15.98% |
5.73% |
| 2013 |
32.36% |
37.07% |
| 2014 |
13.66% |
6.24% |
| 2015 |
1.38% |
8.18% |
| 2016 |
11.93% |
-1.93% |
| 2017 |
21.80% |
35.22% |
| 2018 |
-4.39% |
-18.07% |
| 2019 |
31.45% |
33.21% |
| 2020 |
18.39% |
22.66% |
| 2021 |
28.67% |
9.84% |
| 2022 |
-18.12% |
-21.17% |
| 2023 |
26.24% |
21.44% |
| 9/30/24 |
22.06% |
36.03% |
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 0.195%, plus organization
costs, but not taxes or commissions paid by the portfolio to purchase
securities. Strategy returns assume that dividends are reinvested semiannually
while index returns assume dividends are reinvested monthly.
Actual portfolio performance will vary from that of investing in the
strategy stocks because it may not be invested equally in these 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.
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.
A public health crisis, and the ensuing policies enacted by governments and central banks in response, could cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects.
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.