The Dow Jones Value Dividend Focus Portfolio, Series 26 ("Trust") seeks to provide total return primarily through capital appreciation and current dividend income by investing in a portfolio of common stocks.
|Wrap Fee Price||$10.701700|
|Remaining Deferred Sales Charge||$0.145000|
|Mandatory Maturity Date||12/15/2017|
|NASDAQ Ticker Symbol||CRBDAX|
|Inception Unit Price||$10.000000|
|Inception Bid Price||$9.900000|
|Inception Liquidation Price||$9.755000|
|Deferred Sales Charge Dates||
|Number of Holdings||50|
|Historical Annual Dividend Distribution||$0.350100|
All data is subject to change daily. Data may differ from the prospectus due to different data sources or market changes. Please refer to prospectus for additional information about the trust including the portfolio section criteria. Source: FactSet Research Systems Inc. unless otherwise noted. The total percentages may not be equal to 100% due to rounding. N/A indicates that certain securities have not been identified and/or classified by the data provider. A unit is a combination of securities or types of securities traded together.
|Weighted Average Price/Earnings (P/E) Ratio||14.39|
|Weighted Average Price/Book (P/B) Ratio||4.06|
|Weighted Average Market Cap (MM)||$50,300.48|
|US Common Stock||96.25%|
|Mortgage Real Estate Investment Trusts (REITs)||3.75%|
|Hotels Restaurants & Leisure||3.39%|
|Independent Power and Renewable Electricity Producers||1.69%|
|Food & Staples Retailing||1.47%|
|Electronic Equipment Instruments & Components||1.36%|
|Aerospace & Defense||1.63%|
|Commercial Services & Supplies||1.88%|
|Road & Rail||1.56%|
|Diversified Telecommunication Services||5.68%|
|Health Care Equipment & Supplies||1.25%|
Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
Principal Investment Strategy
The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of the Sponsor and Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio The U.S.-listed common stocks held by the Trust may include the common stocks of U.S. and non-U.S. companies. The Trust may include securities of real estate investment Trusts (“REITs”). As a result of the strategy, the Trust is concentrated in the financial sector and invests significantly in the consumer products sector.
The Trust’s portfolio is constructed and the securities are selected approximately six business days prior to the initial date of deposit using the methodology described below.
In constructing the Trust portfolio, securities will be selected based on the following fundamentally-based quantitative criteria:
• Begin with all companies listed in the Dow Jones U.S. Top-Cap Value Total Stock Index, which is a combination of the Dow Jones U.S. Large-Cap Value Total Stock Index and the Dow Jones U.S. Mid-Cap Value Total Stock Market Index.
• Exclude companies with a price per share of less than $5 and more than $500.
• Exclude companies with a 30-day average daily traded value of less than $1 million.
• Exclude companies with an indicated dividend yield of zero. Indicated dividend yield is a company’s most recently announced dividend, annualized based on dividend frequency and divided by market price (abnormal or special dividends are not included).
• Exclude 20% of the remaining companies with the lowest indicated dividend yield.
• Exclude 20% of the companies in the starting index with the highest standard deviation of daily returns for the trailing year, as provided by FactSet.
• Select the 100 companies with the highest GIQ Implied Risk Premium based on the methodology described below.
• Select the final portfolio by indicated dividend yield and weight the portfolio by indicated dividend yield, subject to a 5% cap for each individual security on the day the strategy generates the final portfolio. (A company’s weight in the portfolio is derived by dividing the indicated dividend yield of each company by the sum of all indicated dividend yields for the selected companies.) Please note that due to the fluctuating nature of security prices, the weighting of an individual security in the Trust may be greater than 5% of the portfolio after the portfolio selection date.
GIQ Implied Stock Risk Premium
The GIQ (“Guggenheim Intelligent Quantitative”) Implied Risk Premium seeks to measure the market implied discount rate (in excess to risk free rates) that is embedded in the price of a company’s stock. To determine the Implied Risk Premium for a given company, the company’s future cash flows are estimated through a forward-looking discounted free cash flow (“FCF”) model that takes into account each firm’s current balance sheet composition, returns on capital, and normalization assumptions that include excess returns on capital approaching industry average levels over a long-term horizon. The market price of the stock of each firm is used to solve for the discount rate that is required to equate future modeled cash flow streams to current equity value.
Risks and Other 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 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. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
• Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that share prices of the securities in the Trust will not decline and 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 is concentrated in the financial sector. As a result, the factors that impact the financial sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Companies in the financial sector include banks, insurance companies and investment firms. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments. Financial sector companies are especially subject to the adverse effects of economic recession, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business. Negative developments initially relating to the subprime mortgage market and subsequently spreading to other parts of the economy, have adversely affected credit and capital markets worldwide and significantly impacted financial sector companies.
• The Trust invests significantly in the consumer products sector. As a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.
• The Trust invests in securities issued by mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• Inflation may lead to a decrease in the value of assets or income from investments.
• The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.
Please see the Trust prospectus for more complete risk information.
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.
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.
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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