Equity Income Opportunity Portfolio, Series 29
The Equity Income Approach
Many investors are aware that stocks have historically provided higher average annual returns over the
long-term than bonds or money market securities. Still, there are those who don’t feel comfortable
investing in the stock market with all of its potential volatility.
However, there are many approaches to equity investing, including more conservative ones that have the
potential to reduce your exposure to market volatility. The objective of our approach is to achieve the
potential for long-term growth of capital while seeking to reduce the extreme fluctuations that
often times cause investors to flee the market at the wrong time. The principal hallmarks of our approach
are an emphasis on value and finding established companies with above-average dividend yields.
Why Dividends?
Dividends have traditionally been one of the few constants in the world of investing, helping
to buffer volatility in both good and bad markets. When markets decline, dividends have the
potential to offset losses, and when markets rise, dividends have the potential to enhance returns.
A dividend is a payment from a company’s earnings. 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.
Investing in Value
The advantage of a value approach to selecting stocks is that it seeks to reduce the risk of overpaying for
a stock, thus potentially lowering the stock’s downside risk and increasing its upside potential. The Equity
Income Opportunity Portfolio may be appropriate for investors seeking both income and the potential
for long-term capital growth by taking a value approach to the market.
Portfolio Objective
This unit investment trust seeks above-average total return through a combination of
capital appreciation and dividend income by investing in a fixed portfolio of equity
securities; however, there is no assurance the objective will be met.
| Not FDIC Insured • Not Bank Guaranteed • May Lose Value |
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.
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..