What are Blue Chips?

Blue chip companies represent some of the world’s most recognized brands with competitive advantages that may position them to adapt in a changing marketplace. For investors, the advantage of blue chip stocks resides in their size, strength, and stability. With diversified business lines, scale, and established market leadership, blue chip stocks tend to be inherently defensive and able to weather challenging economic times, while offering growth opportunities in more positive environments.

Daily Encounters with Blue Chip Stocks

People are continuously exposed to the products and services of blue chip stocks. The “Day in the Life” graphic details how a typical consumer might interact with blue chip stocks over the course of a day.

Tried and True: The Blue Chip Advantage

Download “Tried and True:
The Blue Chip Advantage”

Blue Chip Info Chart
Set out garbage for Waste Managment
to pick up
Have a glass of chocolate milk
from Nestle
Use Apple, Inc. iPhone to
make a call
Get gas for car at Exxon
Go shopping and pay
with Mastercard
Pick up prescription from CVS
Place an Amazon order
Connect with friends from
high school onFacebook
Watch a movie on a Sony TV
Have a late night snack of
Tolberone® from Mondelez

The logos listed are trademarks of their respective owners and are used for illustrative purposes only and should not be construed as an endorsement or affiliation with Guggenheim Investments. A list of each Guggenheim portfolio’s complete holdings is available daily on GuggenheimInvestments.com.

Resilience of Blue Chips

Blue chip stocks typically deliver attractive up-market / down-market captures. In more volatile markets, such as those experienced over the course of the past 12 months, they deliver on the upside and are resilient on the downside over the long term.

Source: Morningstar 1.31.2024. Past performance is not indicative of future results. See risk metric definitions for up-market capture and down-market capture.

Up-market capture

Up-market capture
A statistical measure of the Russell Top 200 Index’s overall performance in up-markets, relative to the Russell 1000 Index.

Down-market capture

Down-market capture
A statistical measure of the Russell Top 200 Index’s overall performance in down-markets, relative to the Russell 1000 Index.

Benefits of Blue Chip Investing

 

Quality

Offer exposure to recognized market leaders. The size of blue chip companies may offer economies of scale. Typically, they have strong profitability metrics which can signal the presence of a competitive advantage.

 

Strength

Tend to have solid financials, including strong profitability, stable earnings, lower leverage and attractive cash balances.

 

Stable Growth

Tend to be inherently defensive and able to weather challenging economic times, while offering growth opportunities in more positive environments.

 

Lower volatility

Historically tend to have lower volatility than the broad market.

Five Blue Chip Choices from Guggenheim

To offer investors convenient access to blue chip investing, Guggenheim has created five blue chip strategies. Each Guggenheim blue chip strategy is comprised of high quality, large-cap stocks that are meticulously selected to meet the relevant objective of value, income, growth, multinational, or international exposure.

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The Benefits of Blue Chip Investing: Reputation, Stability, Growth.

Blue chip companies represent some of the most widely recognized brands in the world. Their size, stability and reputation also may represent advantages for investors. Guggenheim’s Blue Chip White Paper offers insights into the characteristics of blue chip stocks that enable them to deliver attractive performance compared to the broad market in a variety of market conditions.

Disruptive Opportunity - Innovation That's Changing Markets

The referenced strategies are Unit Investment Trusts

Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.

This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

Index Definitions: The Russell Top 200® Index measures the performance of the largest cap segment of the US equity universe. The Russell Top 200® Index is a subset of the Russell 3000® Index. The Russell Top 200® Index is constructed to provide a comprehensive and unbiased barometer for this very large cap segment and is completely reconstituted annually to ensure new and growing equities are included. The Russell 1000 Index is a subset of the Russell 3000 Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The index is unmanaged and it is not possible to invest directly in an index.

Read the Trust’s prospectus carefully before investing. It contains the Trust’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus at GuggenheimInvestments.com.

Guggenheim Funds Distributors, LLC

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