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Blue Chip Stock Portfolio October 2008 Series
Blue chip companies are widely regarded as According to the International Monetary Large-cap stocks are at attractive price-to-
front-runners in their respective industries. Fund, U.S. GDP growth is estimated to be earnings (P/E) ratios on a historical basis, in
These companies often reside at the core of 1.6% in 2008 compared to overall global our opinion. The chart shown below
American business and market high-quality, growth of 3.9%. In times like these, when the illustrates how much the P/E ratio of the S&P
essential products and services. Their U.S. economy is experiencing slow economic 500 Index has declined in recent years. As of
products and services often remain in growth, investors tend to gravitate toward October 2008, the P/E ratio of the S&P 500
demand, even during periods of slow less economically-sensitive companies. Index, based on forward-looking earnings
economic growth. Blue chips are nationally Because of their unique combination of estimates for the next 12 months is 11.1,
recognized companies that typically share historically-defensive market characteristics according to Bloomberg. The S&P 500 Index
these qualities: and global exposure, we believe that the is an unmanaged index of 500 stocks used to
Blue Chip Stock Portfolio represents an measure large-cap U.S. stock market
•Skilled management
attractive opportunity for investors in light of performance. The index cannot be purchased
•Strong balance sheets
current market conditions. directly by investors.
•Highly liquid
•Ability to generate earnings growth The Blue Chip Stock Portfolio is diversified
S&P 500 Index P/E Ratio
•Record of financial strength and profit growth across many market segments and provides
the opportunity to participate in global 30
One important advantage that blue chip
growth trends. Many blue chip companies
companies enjoy over most companies is that
today are finding more opportunities outside 25
they are usually very well capitalized, which
of the United States, where populations are
has the potential to provide their 20
growing rapidly and market penetration is
stockholders with a greater degree of stability
lower. In 1950, about 66% of the world’s 15
and consistent performance over time.
population lived in developing countries; in
1990, 80% did. By 2010, the figure may 10
Portfolio Objective approach 82%.1 Realizing this, leading
5
companies have been expanding into many
The objective of this unit investment trust is untapped foreign markets where the growth 0
to provide investors the potential for above- rates in per capita income and spending are ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08*
average capital appreciation; however, there generally forecasted to outpace those of Source: Baseline & Thomson First Call/Bloomberg
is no assurance the objective will be met. The developed countries over the next decade. *Estimated
portfolio terminates approximately two years 1
Standard & Poor’s Industry Surveys
from the initial date of deposit.
You should consider the portfolio’s
investment objective, risks, and charges and
expenses carefully before investing. Contact
your financial advisor or call First Trust
Portfolios, L.P. at the number listed below 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.
An investment in a portfolio containing equity securities of foreign issuers is subject to
additional risks, including currency fluctuations, political risks, withholding, the lack of adequate
First Trust Portfolios L.P.
Member SIPC • Member FINRA
financial information, and exchange control restrictions impacting foreign issuers.
1-800-621-1675
www.ftportfolios.com Not FDIC Insured • Not Bank Guaranteed • May Lose Value BLOCFSOC1008
Blue Chip Stock Portfolio October 2008 Series
Portfolio Summary Holdings Style Analysis
Initial Offering Date: 10/16/2008 Large-Cap Growth 46.66%
Initial Public Offering Price: $10.00 per Unit Large-Cap Value 53.34%
Estimated Net First Year Distribution per Unit:* $0.2278
Estimated Net Subsequent Year Distribution per Unit:* $0.2256
Portfolio Ending Date: 10/18/2010
CUSIPs: 30275V 205(c) 213(r)
Fee Accounts CUSIPs: 30275V 221(c) 239(r)
Ticker Symbol: FTBCHX
*The estimated net annual distribution for the subsequent year is expected
Holdings Sector Analysis
to be less than the amount for the first year because a portion of the Consumer Discretionary 6.66%
securities included in the portfolio will be sold during the first year to pay for Consumer Staples 13.31%
organization costs, the deferred sales charge and the creation and Energy 13.31%
development fee. There is no guarantee that the issuers of the securities Financials 13.33%
included in the portfolio will declare dividends in the future or that, if Health Care 16.69%
declared, they will either remain at current levels or increase over time. Industrials 13.34%
Information Technology 16.68%
Holdings Telecommunication Services 3.34%
Ticker Company Name Price* Utilities 3.34%
Consumer Discretionary: The style and sector characteristics of the portfolio are determined as of
BBY Best Buy Co., Inc. $24.58 the initial date of deposit and may differ slightly from those indicated
NKE NIKE, Inc. 50.36 above due to the requirement that only whole shares be purchased for the
Consumer Staples: portfolio and will likely vary thereafter due to market fluctuations in the
KR The Kroger Co. 24.56 underlying securities. For a complete description of these characteristics
PEP PepsiCo, Inc. 51.25 refer to the prospectus.
PG The Procter & Gamble Company 59.82
WMT Wal–Mart Stores, Inc. 50.05 Sales Charges (based on a $10 public offering price)
Energy:
CVX Chevron Corporation 59.98 Standard Accounts
COP ConocoPhillips 49.09 Transactional Sales Charges: Initial 1.00%
XOM Exxon Mobil Corporation 62.35 Deferred 2.45%
RIG Transocean Inc. 68.36 Creation & Development Fee: 0.50%
Financials: Maximum Sales Charge: 3.95%
CB The Chubb Corporation 40.43 Rollover purchases will receive a 1% discount off the public offering price.
GS The Goldman Sachs Group, Inc. 113.15 The rollover option is subject to modification, termination or suspension,
JPM JPMorgan Chase & Co. 38.49 without notice.
STT State Street Corporation 46.83 The deferred sales charge will be deducted in three monthly installments
Health Care: commencing January 20, 2009.
ABT Abbott Laboratories 53.88
GENZ Genzyme Corporation (General Division) 63.98 Fee/Wrap Accounts*
JNJ Johnson & Johnson 60.54 Creation & Development Fee: 0.50%
MDT Medtronic, Inc. 40.84 Maximum Sales Charge: 0.50%
PFE Pfizer Inc. 16.27 *Standard accounts sales charges apply to units purchased as an
Industrials: ineligible asset.
CAT Caterpillar Inc. 42.06 The creation and development fee is a charge of $.05 per unit collected at
GD General Dynamics Corporation 56.36 the end of the initial offering period. If the price you pay exceeds $10 per
GE General Electric Company 19.25 unit, the creation and development fee will be less than 0.50%; if the price
UTX United Technologies Corporation 49.25 you pay is less than $10 per unit, the creation and development fee will
Information Technology: exceed 0.50%.
ADBE Adobe Systems Incorporated 25.94
CSCO Cisco Systems, Inc. 16.62 Volume Discounts
GOOG Google Inc. 339.55
HPQ Hewlett–Packard Company 38.61 If you invest at least $50,000, the maximum sales charge is reduced as follows:
ORCL Oracle Corporation 16.04 Initial Purchases Maximum Sales Charge
Telecommunication Services: $50,000 but less than $100,000 3.70%
T AT&T Inc. 24.62 $100,000 but less than $250,000 3.45%
Utilities: $250,000 but less than $500,000 3.10%
SO The Southern Company 32.59 $500,000 but less than $1,000,000 2.95%
*As of the close of business on 10/15/08. Market values are for reference $1,000,000 or more 2.45%
only and are not indicative of your individual cost basis.
