The Dow® Target 10 Portfolio, December 2024
Series
The Strategy
This unit investment trust which invests in a fixed portfolio
of stocks for approximately 13 months. The portfolio adheres to a simple strategy
referred to as the "Dogs of the Dow". This strategy consists of ranking all 30
stocks contained in the Dow Jones Industrial
Average (DJIA®) by their dividend yield and
investing in an equally weighted portfolio of the
ten highest dividend-yielding stocks.
The Dogs strategy is based on three important elements:
- Higher Dividend Yields - Blue-chip stocks with higher dividend yields may
indicate that the stocks are out of favor or may be undervalued.
- Industry Leaders - The companies included in the DJIA® are some of the
most widely-held and well-capitalized companies in the world.
- Discipline - The strategy dictates what to buy, when to buy, and when to
sell. No emotional judgments are made and the strategy remains the same.
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 Dow® Target 10 Portfolio. Although this unit investment trust
terminates in approximately 13 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* |
|
DJIA® |
Strategy |
DJIA® |
Strategy |
| Since 1972 |
15.31% |
16.14% |
10.98% |
10.79% |
| 25 years |
15.03% |
17.36% |
8.28% |
5.30% |
| 20 years |
14.40% |
16.26% |
9.23% |
6.02% |
| 15 years |
15.08% |
16.65% |
12.92% |
10.37% |
| 10 years |
15.25% |
15.54% |
11.06% |
7.28% |
| 5 years |
18.40% |
19.02% |
12.47% |
5.98% |
| 3 years |
16.89% |
18.01% |
9.38% |
8.33% |
| *Through 12/29/23 |
| Annual Total Returns |
| Year |
DJIA® |
Strategy |
| 1972 |
18.48% |
21.25% |
| 1973 |
-13.28% |
1.91% |
| 1974 |
-23.58% |
-3.04% |
| 1975 |
44.75% |
54.13% |
| 1976 |
22.82% |
33.09% |
| 1977 |
-12.84% |
-4.08% |
| 1978 |
2.79% |
-2.32% |
| 1979 |
10.55% |
10.75% |
| 1980 |
22.17% |
25.51% |
| 1981 |
-3.57% |
5.19% |
| 1982 |
27.11% |
25.03% |
| 1983 |
25.97% |
36.71% |
| 1984 |
1.31% |
5.65% |
| 1985 |
33.55% |
27.57% |
| 1986 |
27.10% |
33.26% |
| 1987 |
5.48% |
3.45% |
| 1988 |
16.14% |
22.22% |
| 1989 |
32.19% |
24.14% |
| 1990 |
-0.56% |
-9.95% |
| 1991 |
24.19% |
32.89% |
| 1992 |
7.41% |
5.47% |
| 1993 |
16.93% |
24.56% |
| 1994 |
5.01% |
1.91% |
| 1995 |
36.87% |
34.26% |
| 1996 |
28.89% |
25.74% |
| 1997 |
24.94% |
19.15% |
| 1998 |
18.15% |
8.24% |
| 1999 |
27.21% |
2.76% |
| 2000 |
-4.71% |
3.49% |
| 2001 |
-5.43% |
-5.00% |
| 2002 |
-14.97% |
-10.90% |
| 2003 |
28.23% |
25.52% |
| 2004 |
5.30% |
2.05% |
| 2005 |
1.72% |
-7.23% |
| 2006 |
19.03% |
27.40% |
| 2007 |
8.87% |
-0.34% |
| 2008 |
-31.92% |
-39.00% |
| 2009 |
22.70% |
14.63% |
| 2010 |
14.10% |
16.66% |
| 2011 |
8.34% |
14.10% |
| 2012 |
10.23% |
7.90% |
| 2013 |
29.63% |
32.18% |
| 2014 |
10.02% |
8.29% |
| 2015 |
0.23% |
0.30% |
| 2016 |
16.46% |
17.72% |
| 2017 |
28.07% |
20.88% |
| 2018 |
-3.48% |
-2.29% |
| 2019 |
25.32% |
17.17% |
| 2020 |
9.75% |
-10.25% |
| 2021 |
20.95% |
13.49% |
| 2022 |
-6.86% |
-0.03% |
| 2023 |
16.17% |
12.05% |
| 6/28/24 |
4.79% |
-2.85% |
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 DJIA®. 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 0.152%, 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 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 DJIA® in certain years and may produce negative results.
The DJIA® consists of 30 U.S. stocks chosen by the editors of The
Wall Street Journal as being representative of American industry. 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.
You should be aware that the portfolio is concentrated in stocks in the health care sector which involves
additional risks, including limited diversification. The companies engaged in the health care sector are
subject to fierce competition, high research and development costs, governmental regulations, loss of patent
protection, and changing consumer spending trends. In addition, health crises, such as a pandemic outbreak,
can severely impact the health care industry in particular.
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 Dow Jones Industrial Average 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 Dow® Target 10 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 Dow Jones Industrial Average.