Value Line® Target 25 Portfolio, 2nd Quarter 2024 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 factors.

The strategy is based on these steps:

  • We begin with the 100 stocks that Value Line® currently gives a #1 ranking for TimelinessTM (stocks of financial companies, limited partnerships and companies whose shares are not listed on a U.S. exchange are not eligible for inclusion in the Value Line® Target 25 Strategy). Value Line® ranks approximately 1,700 stocks, only 100 of which are given their #1 ranking for TimelinessTM. They base their rankings on a long-term trend of earnings, prices, recent earnings, price momentum, and earnings surprises.

  • We then rank the Value Line® #1 stocks for TimelinessTM based on their 12-month and 6-month price appreciation, return on assets, and price to cash flow.

  • The 25 eligible stocks with the best overall ranking on the four factors are selected by the sponsor for the portfolio. The stocks are weighted by market capitalization subject to a minimum weighting of approximately 1% and a maximum weighting of approximately 25%.

If this strategy had been applied since 1985, investors would have realized higher total returns than by investing in the 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 Value Line® Target 25 Portfolio.

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

Mountain Chart

Standard Deviations* Average Annual Total Returns*
S&P 500
Index
Strategy S&P 500
Index
Strategy
Since 1985 15.31% 24.27% 11.44% 13.83%
25 years 15.37% 22.98% 7.55% 5.75%
20 years 14.88% 20.24% 9.68% 3.59%
15 years 15.36% 18.99% 13.95% 5.74%
10 years 15.18% 17.56% 12.01% 4.92%
5 years 18.51% 21.60% 15.66% 8.43%
3 years 17.53% 21.50% 9.97% 0.21%
*Through 12/29/23

Annual Total Returns
Year S&P 500
Index
Strategy
1985 31.72% 33.21%
1986 18.67% 20.13%
1987 5.25% 16.84%
1988 16.56% -9.48%
1989 31.62% 48.06%
1990 -3.19% 3.05%
1991 30.33% 83.63%
1992 7.61% -2.72%
1993 10.04% 24.94%
1994 1.30% 12.07%
1995 37.50% 52.05%
1996 22.89% 54.08%
1997 33.31% 33.77%
1998 28.55% 90.88%
1999 21.03% 111.09%
2000 -9.10% -10.46%
2001 -11.88% -0.20%
2002 -22.09% -23.97%
2003 28.65% 39.19%
2004 10.87% 21.69%
2005 4.90% 19.61%
2006 15.76% 0.60%
2007 5.56% 23.45%
2008 -36.99% -51.47%
2009 26.46% 3.03%
2010 15.08% 28.50%
2011 2.08% -29.33%
2012 15.98% 14.11%
2013 32.36% 33.88%
2014 13.66% 9.87%
2015 1.38% -9.51%
2016 11.93% 5.24%
2017 21.80% 7.42%
2018 -4.39% -4.08%
2019 31.45% 8.57%
2020 18.39% 37.17%
2021 28.67% 41.44%
2022 -18.12% -34.35%
2023 26.24% 8.39%
3/28/24 10.55% 23.43%

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% in the first year 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 industrials sector which involves additional risks, including limited diversification. The companies engaged in the industrials sector are subject to certain risks, including a deterioration in the general state of the economy, intense competition, domestic and international politics, excess capacity and changing spending trends.

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 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.

“Value Line”, “The Value Line Investment Survey”, and “Timeliness,” are trademarks or registered trademarks of Value Line, Inc. (“Value Line”) and have been licensed for use for certain purposes by First Trust Portfolios L.P. This product is not sponsored, endorsed, recommended, sold or promoted by Value Line and Value Line makes no representation regarding the advisability of investing in products utilizing such strategy. First Trust Portfolios L.P. is not affiliated with any Value Line company.

 

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