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Investing Made Simple
The DowSM Target 5 Trust is based on a simple strategy, commonly known as 'the dogs of The DowSM'. The strategy invests in the five lowest-priced of the ten highest dividend-yielding stocks of the Dow Jones Industrial AverageSM (DJIASM). It seeks to outperform the DJIASM over a one year period and suggests that you rebalance and readjust the portfolio annually. This is an outstanding vehicle for tools like traditional retirement IRA's, ROTH IRA's, Edcation IRA's. Historically, as the chart below shows, if this strategy had been applied when selecting stocks over the last 25 years, investors would have realized a higher total return than by investing in the entire DJIASM. It is important to note, however, that past performance is no guarantee of future results, and there is no guarantee the objectives of the Trust will be reached. The DowSM Target 5 Trust offers a simplified way to purchase these five stocks with a low minimum investment. Although the Trust will terminate in approximately one year, investors should consider the long-term benefit of the strategy and may roll their assets annually into the then-current series, if available. *The Dow Jones Industrial AverageSM and DJIASM are service marks of Dow Jones & Co., Inc. and have been licensed for use for certain purposes by First Trust Advisers L.P. The DowSM Target 5 Trust, based on the Dow Jones Industrial AverageSM , is not endorsed, sold, or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of investing in such products.
The chart above represents past performance of the S&P 500 Index, DJIASM and the 5 lowest-priced of the 10 highest-yielding stocks (but not the Trust or any prior series) and the results are hypothetical. The chart assumes that all dividends during a year are reinvested semi-annually. The DowSM Target 5 strategy returns reflect sales charges, fees and expenses, but not taxes. In addition, the Trust's performance will vary from that of investing in the DowSM Target 5 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 indices in certain years and may produce negative results. All returns as of 12-31-97 Advantages of Investing IMMEDIATE LIQUIDITY Units may be redeemed on any business day at the current market value (less any remaining deferred sales charge) which may be more or less than your original purchase price. There may be tax consequences unless units are purchased in an IRA or other qualified plan.
IN-KIND DISTRIBUTION Investors with a minimum of 2,500 units can take shares of stock, rather than cash at termination or at any time over the life of the Trust. This defers a taxable event.
DIVIDEND DISTRIBUTION Dividends, if any, will be paid to Unit holders each June, December, and at termination. Dividends may be reinvested into additional units, subject only to any remaining deferred sales charge.
EXCHANGE OPTION Investors of other unit investment trusts, having a similar strategy to the Target 5 Trust, may use the proceeds from those trusts to purchase units of the Target 5 Trust at no up front sales charge.
KNOWN PORTFOLIO Unit investment trusts provide a specific portfolio giving investors the comfort of knowing exactly what they own. Comparison of Total Return Year DJIASM* Target 5 Strategy** 1973 -13.20% 16.62% 1974 -23.64% -7.41% 1975 44.46% 62.26% 1976 22.80% 38.60% 1977 -12.91% 3.39% 1978 2.66% -0.84% 1979 10.60% 7.70% 1980 21.90% 39.33% 1981 -3.61% 1.11% 1982 26.85% 41.00% 1983 25.82% 34.06% 1984 1.29% 8.98% 1985 33.28% 36.00% 1986 27.00% 28.61% 1987 5.66% 8.55% 1988 16.03% 19.26% 1989 32.09% 8.41% 1990 -0.73% -17.67% 1991 24.19% 59.53% 1992 7.39% 20.67% 1993 16.87% 31.70% 1994 5.03% 6.15% 1995 36.67% 28.22% 1996 28.71% 23.95% 1997 24.82% 17.77% Compounded Annual Average Total Return 13.08% 19.11% 1998† 14.11% 8.80% *An index of 30 stocks compiled by Dow Jones & Company, Inc. Total return represents the sum of a stock's appreciation and actual dividend yield.**The 5 lowest-priced of the 10 highest-yielding stocks for any given year were selected by ranking the dividend yields for each of the stocks in the DJIASM as of the beginning of that year, based upon an annualization of the last quarterly or semi-annual regular dividend distribution (which would have been declared in the preceding year) divided by that stock's market value on the first trading day on the New York Stock Exchange in the given year. These returns represent the Target 5 strategy but not the Trust or any prior series and takes into consideration any sales charges, fees and expenses, but not taxes. †Calculated through 6/30/98. Summary of Performance The Target 5 Trust October 1998 Series Target 5 Strategy* 25 Years 19.11% 20 Years 18.78% 15 Years 19.64% 10 Years 18.17% 5 Years 20.97% *These hypothetical results represent the past performance of the Target 5 strategy, but not the Trust since it was not in existence. Performance figures are historical and take into consideration any sales charges, fees and expenses, but not taxes. Past performance is no guarantee of future results. Low Initial Sales Charge The deferred sales charge will be deducted in equal payments over a ten-month period. Ask for a free prospectus which includes current statistical data, information about sales charges and expenses, and a discussion of the risks associated with equity investments. Read the prospectus carefully before you invest or send money. For more information, contact Ken Lund at kenlund@ptinet.net. |
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Text, charts and examples found within this web site are for illustrative and informational purposes only. No guarantees, promises, representations specific to your own circumstances are made within this site. If you have questions or comments, complete the feedback section or send mail to kenlund@ptinet.net with questions or comments about this web site. Copyright © 1998 American Cornerstones Last modified: June 1, 1998 |
