Guggenheim Frontier Markets ETF

NAV $16.11
Change ($0.07) / -0.43%
As of 3/22/18

Market Close $16.11
Change ($0.22) / -1.35%
As of 3/22/18

Investment Objective

Guggenheim Frontier Markets Equity ETF (FRN)* seeks investment results that correspond generally to the performance, before the fund's fees and expenses, of the BNY Mellon New Frontier Index. FRN seeks opportunities based on an evaluation of gross domestic product growth, per capital income growth, experienced and expected inflation rates, privatization of infrastructure and social inequalities.

Index Description

The BNY Mellon New Frontier Index is comprised of all liquid American depository receipts (“ADRs”), global depository receipts (“GDRs”) and local securities of certain countries that are represented in the index.

Fund Highlights

  • Offers broad exposure to the frontier marketplace.
  • Potential to benefit from the growth of countries in the early stages of economic development.
  • Provides relatively low correlation to other equity asset classes.

*On April 17, 2015, Guggenheim Frontier Markets ETF (FRN) revised its benchmark methodology to include local securities, in addition to those currently available in the form of American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). A 15% country cap was placed on the three largest countries within the eligible country list (Kuwait, Nigeria, Argentina) and a 10% country cap was placed on all other eligible countries. Eligible constituents must have a minimum market cap of $250M and a three-month minimum ADV of greater than $500k USD. FRN is rebalanced quarterly (April/July/October/January).

Top Fund Holdings

Security Name % of Net Assets

Fund Profile

Fund Ticker FRN
Exchange NYSE Arca
iNAV Ticker FRN.IV
CUSIP 18383Q838
Fund Inception Date 6/12/2008
Distribution Schedule (if any) Annually
Gross Expense Ratio 1.17%
Net Expense Ratio 0.70%
Fiscal Year-End 5/31
Index Ticker BKNFR
Index Name BNY Mellon New Frontier Index
Volume 121,006
Shares Outstanding 4,290,000
Total Assets $69,093,288
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC

Net Asset Value (NAV)

NAV $16.11
Change ($0.07) | -0.43%
52-Week High $16.20
52-Week Low $12.81

Market Close

Closing Price $16.11
Change ($0.22) | -1.35%
52-Week High $16.33
52-Week Low $12.79
Bid/Ask Midpoint $16.18
Premium/Discount 0.43%

Fund Characteristics

Number of Securities 92
Price to Earning (P/E) 20.32
Price to Book (P/B) 3.50

Fund Statistics

Beta 0.65
Standard Deviation 13.67

Current Distribution

Ex-Date 12/26/17
Record Date 12/27/17
Payable Date 12/29/17
Distribution per Share $0.538700

Index Methodology

The Index tracks the performance of companies in Frontier Markets. The Frontier Market countries are Argentina, Bahrain, Bangladesh, Bulgaria, Croatia, Cyprus, Jordan, Kazakhstan, Kenya, Kuwait, Latvia, Lithuania, Nigeria, Oman, Pakistan, Panama, Romania, Sri Lanka, Tunisia, Ukraine, Vietnam and Zambia. The universe of potential constituents includes all liquid ADRs, GDRs and ordinary shares which meet certain criteria with respect to trading volume, market capitalization and price. 

Index Construction

  1. The Index consists of all ADRs, GDRs and local securities of companies from Argentina, Bahrain, Bangladesh, Bulgaria, Croatia, Cyprus, Jordan, Kazakhstan, Kenya, Kuwait, Latvia, Lithuania, Nigeria, Oman, Pakistan, Panama, Romania, Sri Lanka, Tunisia, Ukraine, Vietnam and Zambia that meet the following criteria:
    • Minimum 10 days traded in each month for the previous 3 months and average daily volume greater than or equal to $500,000. The inclusion of an ADR or GDR in the Index based on local share liquidity will be determined on a case-by-case basis and the local share volume must pass the same minimum requirements as the ADR or GDR.
    • Free-float adjusted market capitalization greater than or equal to $250 million.
    • To improve the investability of the Index and avoid adverse tax consequences for investors, passive foreign investment companies are excluded based on the best information available.
    • The Index’s administrator, subject to periodic review by a policy steering committee known as the BNY Mellon ADR Index Committee, performs a quarterly review of the Index methodology. Any changes to the methodology will be publicly disclosed prior to implementation of the change.
    • The Index is weighted based on a modified capitalization method, using a formula based upon the aggregate of prices times share quantities. The aggregate weight of all components within each country will be capped at 10% of the total Index weight with the exception of Argentina, Kuwait and Nigeria, which will be capped at 15%. The number of shares used in the Index calculation generally represents the entire class(es) or series of shares, adjusted for free-float, that trade in the local market and also trade in the form of depositary receipts in the United States and the United Kingdom, New York Shares, Global Registered Shares, or ordinary shares. Adjustments are made to ensure that no single security exceeds 10% of the Index and, with respect to the bottom 40% of the Index weight, that no single security represents more than 4.5% of the Index.
    • The Index is adjusted for changes in shares and float that may affect the weighting of constituents generally on a quarterly basis.

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. 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. Risks of Investing in Frontier Securities: Frontier Market countries are emerging market countries. Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries, including risks associated with expropriation and/or nationalization, political or social instability, armed conflict, the impact on the economy as a result of civil war, religious or ethnic unrest and the withdrawal or non-renewal of any license enabling the fund to trade in securities of a particular country, confiscatory taxation, restrictions on transfers of assets, lack of uniform accounting, auditing and financial reporting standards, less publicly available financial and other information, diplomatic development which could affect U.S. investments in those countries and potential difficulties in enforcing contractual obligations. Frontier countries generally have smaller economies or less developed capital markets than traditional emerging markets, and, as a result, the risks of investing in emerging market countries are magnified in frontier countries. Political Risk: Certain of the frontier countries may be subject to a greater degree of political and social instability than is the case in more developed countries. Licensing, Custody and Settlement Risk: Approval of governmental authorities may be required prior to investing in the securities of companies based in certain frontier countries. Delays in obtaining such an approval would delay investments in the particular country. Certain banks in foreign countries that are eligible foreign sub-custodians may lack extensive operating experience, and there may be legal restrictions or limitations on the ability of the fund to recover assets held in custody by a foreign sub-custodian in the event of the bankruptcy of the sub-custodian. Because settlement systems may be less well organized than in developed markets, there may be a risk of delayed settlements and that cash or securities of the fund may be in jeopardy because of failures of or defects in the systems. Financial Services Sector Risk: The financial services industries are subject to extensive government regulation, can be subject to relatively rapid change due to increasingly blurred distinctions between service segments, and can be significantly affected by availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, and price competition. 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. Micro-Cap Company Risk: Micro-cap stocks involve substantially greater risk so floss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), and their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. 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. Please note: the above risks are a broad overview of the potential risks associated with investing in the Frontier markets. Investing in securities of Frontier countries involves significant risk. The prospect us contains a more detailed discussion of these individual risks and should be evaluated when determining an investor’s risk tolerance.

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.

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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