Disruptive Investing— Invest in the Future Today

Guggenheim and ARK Invest (ARK) believe that the global economy is undergoing a transformation, the likes of which hasn’t been seen in more than a century. The transformation is being driven by innovation that has the potential to change the way the world works. Innovation can displace industry incumbents, increase efficiencies, and, generally, expand market share. While Guggenheim and ARK Investment Management LLC (ARK) believe that innovation poses a threat to companies that fail to adapt, the long-term opportunities for companies participating in the change could be measured in trillions of dollars.

Early Stage Disruptors—Identifying the Next Big Thing

At the forefront of today’s innovation wave are “early stage disruptor” companies—leading innovative companies that have the potential for future long-term growth and are either newer public companies or have introduced new technologically-enabled products or services that are in the early stages of development. Disruptors offer the potential to stimulate substantial growth or even create new markets, while upending existing sectors.

A newer public company that the sponsor believes is a disruptor company and has the potential for future long-term growth


A company that has introduced a technologically enabled product or service that is in the early stages of development and has the potential for future long-term growth.

Today’s Five Transformative Innovation Platforms

A century ago, three innovation platforms— the internal combustion engine, telephony, and electrification—changed the world by transforming the way we traveled, communicated and transmitted power. Similarly, ARK and Guggenheim believe the global economy is undergoing an even larger technological transformation thanks to five innovation platforms evolving at the same time: artificial intelligence, DNA sequencing, robotics, energy storage, and blockchain technology.


Artificial Intelligence (AI)

Artificial intelligence (AI) refers to the ability for machines to mimic the capabilities of humans. ARK and Guggenheim believe that AI learning systems will transform not only retail, media and telecom, as did the Internet, but all sectors in the economy, even those previously thought impervious to disruption, notably health care and financial services.


Associated Transformative Technologies: Neural Networks, Mobile Connected Devices, Cloud Computing, Internet of Things


DNA Sequencing

As the cost to sequence a whole human genome falls precipitously, DNA Sequencing, a test once limited to the research lab, should see widespread clinical adoption and an increase in volumes, transforming health care completely.


Associated Transformative Technologies: Immunotherapy, Gene Editing, Sequencing Technology


Energy Storage

Declining battery costs should cause an explosion in mobile form factors. These innovations should increase the demand for electrical energy, displacing fossil fuels and reducing not only the vulnerability of grids but also operating expenses and the capital intensity of transmission and distribution.


Associated Transformative Technologies: Battery Systems, Autonomous Mobility


Blockchain Technology

ARK believes money and contracts could one day migrate onto open source protocols that enable and verify digital scarcity and proof of ownership. The financial ecosystem may be forced to reconfigure and take advantage of more transparency, fewer capital and regulatory controls, and a collapse in contract execution costs.


Associated Transformative Technologies: Blockchain, Frictionless Value Transfer



Advances in software and sensors should enable robots to operate alongside humans in all sorts of environments. If their unit costs decline by more than 50% while their capabilities increase, as ARK anticipates will be the case, robots should transform many business that depends upon physical processes and workflows.


Associated Transformative Technologies: Adaptive Robotics, 3D Printing, Reusable Rockets


Innovation as a Strategic Allocation

The forces of disruption, including the digital transformation, are impacting industries across the globe. Innovative platforms are still in their infancy and have the potential to reshape the way the world works. Given that disruptor companies are not significantly represented in broad-based equity market indexes, Guggenheim and ARK believe that investors may want to evolve their style box investment strategies to capture innovation as a portfolio component that complements traditional holdings and may offer attractive growth opportunities.

Potential Benefits of Adding Early Stage Disruptors to A Portfolio

ARK Early Stage Disruptors Portfolio

To offer investors access to the potential growth opportunities found through early stage disruptor companies, Guggenheim has partnered with ARK Investment Management LLC (ARK) to create the ARK Early Stage Disruptors Portfolio.

When added to a well-allocated portfolio, Guggenheim believes the strategy may offer diversification opportunities through exposure to companies not traditionally widely held, and may provide the possibility to gain targeted exposure to tomorrow’s potential market leaders.

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About ARK Investment Management LLC

ARK Investment Management LLC is a federally registered investment adviser and privately held investment firm with $84 billion in assets under management as of June 30, 2021. Specializing in thematic investing in disruptive innovation, the fi rm is rooted in over 40 years of experience in identifying and investing in innovations that should change the way the world works. Through its open research process, ARK identifies companies that it believes are leading and benefiting from cross-sector innovations such as robotics, energy storage, DNA sequencing, artificial intelligence, and blockchain technology.

Yes! I want to know more about investing in innovation and receive the white paper, ”Disruptive Opportunity: Innovation That’s Changing Markets.”

Disruptive Opportunity Innovation That’s Changing Markets.

When a technology crosses certain cost or performance thresholds, its addressable market can widen and diversify dramatically. We believe that no sector, industry, or company in the world will escape the throes of change now underway. In our ever-changing world, as industries are disintermediated or displaced, and lifespans of companies shorten, investors could capitalize on these alternative sources of growth potential.

Disruptive Opportunity - Innovation That's Changing Markets

1 Source: ARK Investment Management LLC 6.30.2021. There is no guarantee that these trends and projections will continue or come to fruition and they are subject to change.

2 Source: Standard & Poor’s, 7.28.2021.

ARK Early Stage Disruptors Portfolio is a Unit Investment Trust.

RISK CONSIDERATIONS: As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust does not invest directly in cryptocurrencies or invest indirectly in cryptocurrencies through derivative instruments or other investment vehicles, such as exchange-traded funds or other funds, that seek to track the price movements of one or more cryptocurrencies. Additionally, the Trust will not invest in initial coin offerings. • The Trust also might not perform as well as you expect. This can happen for reasons such as these: • Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices, which could negatively impact the value of the Trust. Events such war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may adversely affect the economy, various markets and issuers. Recently, the outbreak of a novel and highly contagious form of coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant volatility in certain markets. Many governments and businesses have instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The potential impacts are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses. Any adverse event could materially and negatively impact the value and performance of Trust and the Trust’s ability to achieve its investment objectives. • Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust, and there is no guarantee that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time. • The Trust invests in early stage disruptors. Although the Trust’s investment strategy is designed to achieve the Trust’s investment objective, the strategy may not prove to be successful. The investment decisions may not produce the intended results and there is no guarantee that the investment objective will be achieved. Companies that may be capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology. Companies that develop disruptive technologies may face political or legal attacks from competitors, industry groups or local and national governments. These companies may also be exposed to risks applicable to sectors other than the disruptive innovation platform for which they are chosen, and the securities issued by these companies may underperform the securities of other companies that are primarily focused on a particular innovation platform. The Trust may invest in a company that does not currently derive any revenue from disruptive innovations or technologies, and there is no assurance that a company will derive any revenue from disruptive innovations or technologies in the future. A disruptive innovation or technology may constitute a small portion of a company’s overall business. As a result, the success of a disruptive innovation or technology may not affect the value of the equity securities issued by the company. • The Trust is concentrated in the health care sector, which will likely have a greater effect on this Trust than on a more broadly diversified trust. General risks of companies in the health care sector include extensive competition, generic drug sales, the loss of patent protection, product liability litigation and increased government regulation. • The Trust is concentrated in companies involved with DNA sequencing, which will likely have a greater effect on this Trust than on a more broadly diversified trust. DNA sequencing companies typically engage in significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful. The field of DNA sequencing science could face increasing regulatory scrutiny in the future and the process of obtaining regulatory approvals may be long and costly. DNA sequencing companies typically face intense competition and potentially rapid product obsolescence. These companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. • The Trust is concentrated in companies involved with artificial intelligence, which will likely have a greater effect on this Trust than on a more broadly diversified trust. Artificial intelligence companies may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress and government regulation. These companies face intense competition and potentially rapid product obsolescence. These companies are also heavily dependent on intellectual property rights, and challenges to or misappropriation of such rights could have a material adverse effect on such companies. Securities of artificial intelligence companies tend to be more volatile than securities of companies that rely less heavily on technology. Artificial intelligence companies typically engage in significant amounts of spending on research and development, and rapid changes to the field could have a material adverse effect on a company’s operating results • The Trust invests in U.S.-listed foreign securities and American Depositary Receipts (“ADRs”). which presents additional risk. ADRs are issued by a bank or trust company to evidence ownership of underlying securities issued by foreign corporations. Securities of foreign issuers present risks beyond those of domestic securities, such as foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards. • The Trust invests in securities issued by small-capitalization and mid-capitalization companies, which may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments. These securities customarily involve more investment risk than securities of large-capitalization companies. • The Trust may be susceptible to potential risks through breaches in cybersecurity. • The Trust is subject to risks arising from various operational factors and their service providers. Although the Trust seeks to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.• Inflation may lead to a decrease in the value of assets or income from investments. Please see the Trust prospectus for more complete risk information.

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