Guggenheim Raymond James SB-1 Equity ETF

NAV $43.62
Change ($1.03) / -2.31%
As of 3/22/18

Market Close $43.61
Change ($1.08) / -2.42%
As of 3/22/18

Investment Objective

Guggenheim Raymond James SB-1 Equity ETF (RYJ) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the Raymond James SB-1 Equity Index.

Index Description

The Raymond James SB-1 Equity Index is composed of all equity securities rated Strong Buy (“SB-1”) by Raymond James & Associates, Inc., an affiliate of Raymond James Research Services, LLC (“Raymond James”), the fund’s index provider, as of each rebalance and reconstitution date.

Fund Highlights

  • Offers single trade access to Raymond James & Associates equity research capabilities.
  • Historically has provided growth potential through Raymond James’ security selection of equities expected to outperform the S&P 500 in either the six or 12-month period.

Top Fund Holdings

Security Name % of Net Assets

Fund Profile

Fund Ticker RYJ
Exchange NYSE Arca
iNAV Ticker RYJ.IV
CUSIP 18383M613
Fund Inception Date 5/19/2006
Distribution Schedule (if any) Annually
Gross Expense Ratio 0.75%
Net Expense Ratio 0.75%
Fiscal Year-End 8/31
Index Ticker RJSBI
Index Name Raymond James SB-1 Equity Index
Volume 7,977
Shares Outstanding 4,272,822
Total Assets $186,396,087
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC

Net Asset Value (NAV)

NAV $43.62
Change ($1.03) | -2.31%
52-Week High $46.48
52-Week Low $38.26

Market Close

Closing Price $43.61
Change ($1.08) | -2.42%
52-Week High $46.48
52-Week Low $38.20
Bid/Ask Midpoint $43.64
Premium/Discount 0.05%

Fund Characteristics

Number of Securities 156
Price to Earning (P/E) 17.31
Price to Book (P/B) 2.07

Fund Statistics

Beta 1.07
Standard Deviation 13.26

Current Distribution

Ex-Date 12/26/17
Record Date 12/27/17
Payable Date 12/29/17
Distribution per Share $0.000000

Index Methodology

The Index is composed of all equity securities rated SB-1 by Raymond James & Associates as of each rebalance and reconstitution date, with the relative weighting of each constituent determined according to a modified equal-weighting methodology, as described below. The number of securities rated SB-1 may be modified on any day as a result of upgrades and/or downgrades of securities’ ratings by Raymond James & Associates analysts; however, the Index will be reconstituted and rebalanced twice per calendar month.

There are currently four rating categories used by Raymond James & Associates analysts, with SB-1 being the highest rating. A rating of SB-1 indicates generally that the Raymond James & Associates analyst assigning the rating expects the stock to achieve total return of at least 15% and to outperform the S&P 500 the next six to twelve months. In the case of certain higher-yielding or more conservative equities, a rating of SB-1 indicates that the Raymond James & Associates analyst assigning the rating expects such equities to achieve total return of at least 15% over the next 12 months. The ratings assigned by Raymond James & Associates analysts represent such analysts’ judgments given available public facts and information and are not intended as guarantees of investment performance of rated securities or of the Index.

Raymond James & Associates Equity Research Department currently includes more than 49 equity analysts and publishes research on approximately 949 companies. Securities rated by Raymond James & Associates analysts include equity securities of U.S. issuers and U.S. dollar-denominated equity securities of foreign issuers, in each case that are traded on U.S. securities exchanges. As of November 30, 2016, 156 securities received a rating of SB-1 from Raymond James & Associates analysts. The number of securities rated SB-1 may be modified on any day as a result of upgrades and/or downgrades of securities’ ratings by Raymond James & Associates analysts.

Index Construction

  1. Index constituents will include all securities rated SB-1 by a Raymond James & Associates analyst as defined above.
  2. The Index will seek to include each SB-1 rated security in equal dollar-weighted percentages relative to the total value of the entire Index of SB-1 rated securities (“Equal Portfolio Weight”). Using the following method, in instances in which there is comparatively little trading volume in a SB-1 rated security, the Index will limit its weighting in that constituent. Upon initial selection and on each rebalancing and reconstitution day, the Index will calculate for each SB-1 rated security the average product of the closing price multiplied by the trading volume for such stock for the 60 trading days prior to the rebalancing and reconstitution day to provide the “Average Price-Volume Amount.” For any Index constituent that the Average Price-Volume Amount is less than $1,000,000 per day, that security’s weight will be reduced to a proportion of the Equal Portfolio Weight equal to the ratio of its Average Price-Volume Amount over $1,000,000 (the “Liquidity Cap”). To the extent that the Index’s weighting in a security is limited as a result of the Liquidity Cap, the difference between the equal weight position and the capped position will be reallocated equally among all other Index constituents.
  3. At each Index rebalancing and reconstitution, all Index constituents that are no longer rated SB-1 on the date of the rebalancing and reconstitution will be removed from the Index and all securities rated SB-1 on the date of the rebalancing and reconstitution that are not currently part of the Index will be added.
  4. In the event a constituent is downgraded by Raymond James & Associates and is no longer rated SB-1 subsequent to adding the security as an Index constituent, such constituent will remain a part of the Index until the next rebalancing and reconstitution date following such downgrade. In the event a security is upgraded by Raymond James & Associates to a rating of SB-1 between rebalancing and reconstitution dates, the constituent will be added to the Index at the next rebalance and reconstitution date.
  5. The Index will be rebalanced and reconstituted twice per calendar month.

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 prices of equity securities generally fluctuate in value more than fixed-income investments, may rise or fall rapidly or unpredictably and may reflect real or perceived changes in the issuing company’s financial condition and changes in the overall market or economy. A decline in the value of equity securities held by the fund will adversely affect the value of your investment in the fund. Small- and Medium-Sized Company Risk The fund is subject to the risk that small- and mid- capitalization securities may underperform other segments of the equity market or the equity market as a whole, may be more speculative, volatile and less liquid than securities of large companies, and may be more vulnerable to adverse developments than large capitalization companies. Micro-Cap Company Risk: Micro-cap stocks involve substantially greater risks of loss 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. Concentration Risk: If the index concentrates in an industry or group of industries, the fund’s investments will be concentrated accordingly. In such event, the value of the fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries. REIT Risk: Investments in securities of real estate companies involve risks. These risks include, among others, adverse changes in national, state or local real estate conditions; obsolescence of properties; changes in the availability, cost and terms of mortgage funds; and the impact of changes in environmental laws. Depositary Receipt Risk: The fund may hold the securities of non-U.S. companies in the form of depositary receipts, which are subject to fluctuations in foreign currency exchange rates that may affect the value of the fund’s portfolio. The value of the securities underlying the depositary receipts may change materially when the U.S. markets are not open for trading. Investments in the underlying foreign securities also involve political and economic risks distinct from those associated with investing in the securities of U.S. issuers. Investment in BDCs Risk: BDCs generally invest in less mature private companies, which involve greater risk than well-established, publicly-traded companies. The Investment Company Act of 1940, as amended (the “1940 Act”), imposes certain restraints upon the operations of a BDC and these limitations may prohibit the way that the BDC raises capital. MLP Risk: MLPs are subject to tax risks, limited control and voting rights and potential conflicts of interest. MLPs that concentrate in a particular industry or a particular geographic region are subject to risks associated with such industry or region. Securities issued by MLPs may be relatively illiquid or volatile at times. MLPs may be subject to state taxation in certain jurisdictions, which may reduce the amount of income an MLP pays to its investors. Financial Services Sector Risk: The financial sector can be affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and the impact of more stringent capital requirements, which may adversely affect the fund. Risks Relating to Raymond James & Associate Equity Securities Ratings: The fund will seek to construct and maintain a portfolio consisting of the equity securities rated SB-1 by Raymond James & Associates analysts. Changes in the ratings methodologies or in the scope of equity research by Raymond James & Associates may have an adverse effect on the ability of the fund to pursue its investment strategy. Please see the prospectus for more details and risks pertaining to the following subjects: the details of and possible changes in the ratings system used by Raymond James & Associates analysts, Raymond James & Associates’ provision of research, the subsequent risks and procedures in the event that an analyst leaves Raymond James & Associates, the effects of the modification of research reports published by Raymond James & Associates, including the timing of updating this research and the timing of communicating to investors a change in sentiment pertaining to a covered security (based on the laws, rules and regulations of the SEC and of, other regulatory agencies). Portfolio Turnover Risk: The fund may engage in active and frequent trading of its portfolio securities in connection with the rebalancing of the index, and therefore the fund’s investments. In addition, the fund is 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.

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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