Guggenheim MSCI Global Timber ETF

NAV $32.44
Change ($0.51) / -1.55%
As of 3/22/18

Market Close $32.27
Change ($0.85) / -2.57%
As of 3/22/18

Investment Objective

Guggenheim MSCI Global Timber ETF (CUT) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the MSCI ACWI IMI Timber Select Capped Index.

Index Description

The MSCI ACWI IMI Timber Select Capped Index is designed to measure the performance of securities that are engaged in the ownership and management of forests and timberlands and production of finished products which use timber as raw material. The index captures large, mid and small-cap stocks across 23 developed markets countries and 23 emerging markets countries.

Fund Highlights

  • The first U.S.-listed global timber ETF to offer retail investors access to the global timber market.
  • Timber investments tend to offer low correlations to major asset classes, which may help reduce a portfolio's volatility.
  • Timber investments may offer a potential hedge against inflation.

Top Fund Holdings

Security Name % of Net Assets

Overall Morningstar RatingTM*

as of 12/31/2017
Among Natural Resources Funds

The fund was rated, based on its risk-adjusted returns, 5 stars for 3 years, 4 stars for 5 years, 4 stars for 10 years, and 4 stars Overall out of 127, 116, 72, and 127 Natural Resources funds, respectively.

Fund Profile

Fund Ticker CUT
Exchange NYSE Arca
iNAV Ticker CUT.IV
CUSIP 18383Q879
Fund Inception Date 11/9/2007
Distribution Schedule (if any) Annually
Gross Expense Ratio 0.70%
Net Expense Ratio 0.57%
Fiscal Year-End 5/31
Index Ticker M1CXTSA
Index Name MSCI ACWI IMI Timber Select Capped Index
Volume 37,308
Shares Outstanding 7,000,000
Total Assets $227,079,512
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC

Net Asset Value (NAV)

NAV $32.44
Change ($0.51) | -1.55%
52-Week High $33.68
52-Week Low $26.17

Market Close

Closing Price $32.27
Change ($0.85) | -2.57%
52-Week High $33.73
52-Week Low $26.15
Bid/Ask Midpoint $32.27
Premium/Discount -0.54%

Fund Characteristics

Number of Securities 77
Price to Earning (P/E) 16.11
Price to Book (P/B) 2.70

Fund Statistics

Beta 1.22
Standard Deviation 14.31

Current Distribution

Ex-Date 12/26/17
Record Date 12/27/17
Payable Date 12/29/17
Distribution per Share $0.499100

Index Methodology

The MSCI ACWI IMI Timber Select Capped Index is based on its parent index–the MSCI ACWI Investable Market Indexes (IMI) (the "Parent Index") which captures large, mid and small-cap stocks across 23 developed markets countries and 23 emerging markets countries. The index is designed to reflect the performance of those stocks in the Parent Index that are engaged in the ownership and management of forests and timberlands and production of finished products which use timber as raw material. For example, the index includes companies engaged in the production of forest products, paper products and paper packaging products.

Index Construction

  1. The MSCI ACWI IMI Timber Select Capped Index includes stocks from the Parent Index that belong to the following GICS® subindustries:
    • Forest Products (GICS® Code - 15105010)
    • Paper Products (GICS® Code - 15105020)
    • Paper Packaging (GICS® Code - 15103020)
    • Specialized REITS (GICS® Code - 40402070) - Only those stocks which are classified as ‘Timber’ REITS.
    • All included securities are included at their free-float market capitalization adjusted weight.
    • The maximum Issuer weight in the index is capped at 5%.
    • The MSCI ACWI IMI Timber Select Capped Index is reviewed on a quarterly basis and changes in the Parent Index impact the MSCI ACWI IMI Timber Select Capped Index as follows:
      • Existing constituents of MSCI ACWI IMI Timber Select Capped Index that are deleted from the Parent Index are also deleted from the MSCI ACWI IMI Timber Select Capped Index.
      • Companies that have been added to the Parent Index and satisfy the GICS® subindustries eligibility criteria are added to the MSCI ACWI IMI Timber Select Capped Index.
      • The maximum issuer weight is capped at 5% at each quarterly index review.

Risks and Other Considerations

Risk Considerations Investors should consider the following risk factors and special considerations associated with investing in the fund, which may cause you to lose money, including the entire principal amount that you invest. Equity Risk: The value of the equity securities held by the fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the fund participate, or factors relating to specific companies in which the fund invests. Global Timber Industry Risk: As the Index is comprised of issuers in the global timber industry, the fund is therefore focused in that industry. Accordingly, the fund may be subject to more risks than if it were broadly diversified over numerous industries and sectors of the economy. The market value of securities of global timber companies may be affected by numerous factors, including events occurring in nature and international politics. The volume and value of timber that can be harvested from timberlands may be limited by natural disasters and other events. In periods of poor logging conditions, global timber companies may harvest less timber than expected. Global timber companies involved in the forest, paper and packaging products industries are highly competitive globally, and no single company is dominant. These industries have suffered, and continue to suffer, from excess capacity. Global timber companies are subject to many federal, state and local environmental, health and safety laws and regulations. Foreign Investment Risk: The fund’s investments in non-U.S. issuers, although generally limited to ADRs, may involve unique risks compared to investing in securities of U.S. issuers, including less market liquidity, generally greater market volatility than U.S. securities, and less complete financial information than for U.S. issuers. Small- and Medium-Sized Company Risk: Investing in securities of small- and medium-sized companies involves greater risk than is customarily associated with investing in larger, more established companies. In addition, the funds are subject to: Non-correlation risk, Replication Management Risk, Issuer-Specific Changes and Non-Diversified Fund Risk. Please read the prospectus for more detailed Information regarding these and other risks.

Fund data is subject to change on a daily basis.

Composition is subject to change. Information provided is for illustration purposes only and may not reflect current investments by the fund. Referenced companies are not affiliated with Guggenheim Investments and Guggenheim Investments does not sponsor, endorse, sell or promote the referenced companies.

Performance displayed represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Total returns reflect the reinvestment of all dividends. Current performance may be lower or higher than the performance data quoted. For up-to-date fund performance, including performance current to the most recent month-end, please visit the ETF performance page. ETFs are subject to third party transaction fees/commissions. Net asset value (NAV) is calculated by subtracting total liabilities from total assets, then dividing by the number of shares outstanding. Market close is the last price at which shares are traded. Fund shares may trade at, above or below NAV. For additional information, see the fund’s prospectus.

*The Morningstar Rating for funds, or “star rating”, is calculated for managed products with at least a three-year history and does not include the effect of sales charges. Exchange-traded funds and open-end mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.

© 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investments Advisors, LLC ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisors to the referenced funds.

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