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Quality Dividend Strategy Portfolio Series 18

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Fact Card
Prospectus
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Investment Objective

The Quality Dividend Strategy Portfolio, Series 18 ("Trust") seeks to provide total return primarily through capital appreciation and dividend income.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price $10.554700
Wrap Fee Price $10.293600
Bid Price $10.438600
Liquidation Price $10.293600
Remaining Deferred Sales Charge $0.145000

CUSIPs

Monthly-Cash 40171L821
Monthly-Reinvest 40171L839
Monthly-Fee/Cash 40171L847
Monthly-Fee/Reinvest 40171L854

 

Deposit Information

Inception Date 10/3/2016
Non-Reoffered Date 1/3/2017
Mandatory Maturity Date 1/3/2018
NASDAQ Ticker Symbol CTPLRX
Trust Structure GRANTOR
Inception Unit Price $10.000000
Inception Bid Price $9.900000
Inception Liquidation Price $9.755000
Deferred Sales Charge Dates Feb 2017
Mar 2017
Apr 2017
Term 15 Months
Number of Holdings 105
Historical Annual Dividend Distribution $0.395100

Portfolio Holdings Analysis

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.

Fundamental Data

Weighted Average Price/Earnings (P/E) Ratio 23.84
Weighted Average Price/Book (P/B) Ratio 5.57
Weighted Average Market Cap (MM) $49,122.93

Market Cap & Style Breakdown

Value Growth N/A Total
Large-Cap 30.00% 15.24% -- 45.24%
Mid-Cap 18.42% 14.72% -- 33.15%
Small-Cap 11.41% 7.78% -- 19.19%
N/A -- -- 2.42% 2.42%
Total 59.83% 37.75% 2.42% 100.00%

Asset Class

US Common Stock 68.98%
Non US Common Stock 24.21%
REIT 6.24%
Unit 0.57%
Total 99.99%

Market Cap Breakdown

Style Breakdown

Sector & Industry Breakdown

Energy 14.32%
 Energy Equipment & Services 0.56%
 Oil Gas & Consumable Fuels 13.76%
Financials 13.20%
 Banks 7.28%
 Capital Markets 3.65%
 Insurance 2.27%
Telecommunication Services 11.61%
 Diversified Telecommunication Services 10.02%
 Wireless Telecommunication Services 1.59%
Utilities 10.62%
 Electric Utilities 8.62%
 Independent Power and Renewable Electricity Producers 0.82%
 Multi-Utilities 1.18%
Materials 10.04%
 Chemicals 5.35%
 Containers & Packaging 3.17%
 Metals & Mining 0.49%
 Paper & Forest Products 1.04%
Industrials 8.36%
 Aerospace & Defense 2.23%
 Commercial Services & Supplies 0.85%
 Electrical Equipment 2.06%
 Machinery 2.23%
 Marine 0.30%
 Transportation Infrastructure 0.69%
Information Technology 8.11%
 IT Services 1.98%
 Semiconductors & Semiconductor Equipment 4.17%
 Technology Hardware Storage & Peripherals 1.97%
Consumer Discretionary 7.27%
 Automobiles 2.19%
 Hotels Restaurants & Leisure 1.09%
 Household Durables 0.94%
 Internet & Direct Marketing Retail 0.54%
 Media 1.51%
 Multiline Retail 0.62%
 Specialty Retail 0.39%
Real Estate 6.24%
 Equity Real Estate Investment Trusts (REITs) 6.24%
Health Care 5.33%
 Biotechnology 1.82%
 Health Care Equipment & Supplies 0.44%
 Pharmaceuticals 3.07%
Consumer Staples 4.87%
 Food Products 1.23%
 Household Products 0.43%
 Tobacco 3.21%
Total 99.99%

Country Breakdown

United States 75.79%
United Kingdom 5.20%
Canada 3.32%
Brazil 2.65%
France 2.59%
Norway 1.66%
Chile 1.64%
Spain 1.60%
Taiwan 1.49%
Russia 0.91%
Australia 0.83%
Italy 0.82%
Hong Kong 0.82%
Mexico 0.69%
Total 99.99%

Regional Breakdown

North America 79.49%
West Europe 12.16%
South America 4.29%
Asia 2.31%
East Europe 0.91%
Pacific 0.83%
Total 99.99%

Developed Status

Developed 90.77%
Emerging 7.26%
N/A 1.97%
Total 99.99%

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

Under normal circumstances, the Trust will invest at least 80% of the value of its assets in dividend-paying common stocks of quality companies. The Sponsor believes that quality companies are companies that have demonstrated high returns on assets, profitability, dividend consistency and growth.

The Trust utilizes three different quantitative strategies to determine the constituents of the final portfolio. The portfolio is a blend of securities selected from the following strategies:

• Guggenheim US High Dividend Strategy (25 securities, 50% of the portfolio)

• Guggenheim US SMID High Dividend Strategy (50 securities, 25% of the portfolio)

• Guggenheim International Dividend Strategy (30 securities, 25% of the portfolio)

Selection Criteria

In constructing the Trust’s portfolio, 105 securities were selected using the three fundamentally based quantitative strategies listed below.

Guggenheim US High Dividend Strategy:

Twenty-five securities were selected seven business days prior to the initial date of deposit (the “Security Selection Date”) using the Security Selection Rules outlined below.

Security Selection Rules:

In constructing the Trust’s portfolio, 25 securities were selected based on the following fundamentally based quantitative criteria:

1. Initial Universe: Start with an initial universe of all securities in the Russell 3000® Index as of the Security Selection Date.

2. Rank on Fundamentals: Rank every company identified in the initial universe against other companies in the same sector, as defined by Global Industry Classification Standard (GICS), along each of the following reported financial metrics. Each ranking is determined as of the Security Selection Date using the most recently reported information and uses a scale of 1 through 10 (1 representing the highest scoring 10% in the sector and 10 representing the lowest scoring 10% in the sector):

• Return on assets as provided by S&P Compustat, and calculated as latest four quarters of reported operating income divided by the average of most recent reported total assets and year ago reported total assets.

• Earnings before interest, taxes, depreciation and amortization for the latest four quarters divided by enterprise value, as provided by S&P Compustat. Enterprise value is determined by adding the equity market capitalization as of the most recent closing price with the total outstanding long term and short term debt as determined by the most recently available balance sheet, and then subtracting any cash and short term investments as determined by the most recently available balance sheet.

• Year-over-year growth in sales per share, as provided by S&P Compustat. Trailing year-over-year growth is the percentage change in sales per-share for the trailing 12 months versus the sales per-share from the prior 12 months. Sales per-share is the trailing 12 months of sales from the most recent trailing quarterly or semi-annual filings, whichever is most current, divided by the end of period reported count of common shares outstanding used to calculate basic earnings per share.

Each financial metric will create a separate score so that every company will have three scores. These three scores are averaged together to create one composite score for a company. This composite score is used to rank the companies in the next step in order to determine the sub-universe of securities.

3. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements, with each requirement being applied independently to the initial universe from the other requirements in this step, as of the Security Selection Date:

• Exclude the lowest ranked 25% of securities from the initial universe determined by the average of the three financial rankings described in step 2.

• Exclude the 20% of the initial universe with the lowest trailing six month total return.

• Exclude securities which do not have a policy of regular periodic cash dividends (quarterly, semiannual or yearly), or have omitted the most recent regular periodic cash dividend.

• Exclude securities with a market capitalization less than $200 million. Market capitalization is determined by the closing price as of the Security Selection Date.

• Exclude securities with a liquidity of less than $0.6 million. Liquidity is determined by the median trading volume in U.S. dollars looking back 90 days from the Security Selection Date (i.e., trading volume each day in shares multiplied by the closing price for the day as provided by FactSet Research Systems, Inc.).

• Exclude business development companies as identified by Bloomberg Industry Classification System sub-industry.

• Exclude mortgage real estate investment Trusts, as identified by GICS sub-industry.

• Exclude securities that have a pending cash or stock merger and acquisition or bankruptcy which will lead to delisting the security. Such events will be determined by reviewing the announced merger and acquisition data from Bloomberg.

• Exclude securities that are not one of the largest 500 companies of the initial universe by market capitalization (per FactSet).

4. Selection: Select from the sub-universe the twenty-five top dividend yielding securities (with higher rank given to larger market capitalization when yields are equal) and equally weight these securities as of the Security Selection Date so that each security will constitute 2% of the Trust’s final portfolio. Selected securities must adhere to following strategy limits as of the Security Selection Date:

• Maximum 20% weight in any GICS sector.

Once an investment limitation has been reached, additional securities of that type will not be included in the Trust and the next highest yielding security will be used. Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date.

Guggenheim US SMID High Dividend Strategy:

Fifty securities were selected seven business days prior to the Security Selection Date using the Security Selection Rules outlined below.

Security Selection Rules:

In constructing the Trust’s portfolio, 50 securities were selected based on the following fundamentally based quantitative criteria:

1. Initial Universe: Start with an initial universe of all securities in the Russell 3000® Index as of the Security Selection Date.

2. Rank on Fundamentals: Rank every company identified in the initial universe against other companies in the same sector, as defined by Global Industry Classification Standard (GICS), along each of the following reported financial metrics. Each ranking is determined as of the Security Selection Date using the most recently reported information and uses a scale of 1 through 10 (1 representing the highest scoring 10% in the sector and 10 representing the lowest scoring 10% in the sector):

• Return on assets as provided by S&P Compustat, and calculated as latest four quarters of reported operating income divided by the average of most recent reported total assets and year ago reported total assets.

• Earnings before interest, taxes, depreciation and amortization for the latest four quarters divided by enterprise value, as provided by S&P Compustat. Enterprise value is determined by adding the equity market capitalization as of the most recent closing price with the total outstanding long term and short term debt as determined by the most recently available balance sheet, and then subtracting any cash and short term investments as determined by the most recently available balance sheet.

• Year-over-year growth in sales per share, as provided by S&P Compustat. Trailing year-over-year growth is the percentage change in sales per-share for the trailing 12 months versus the sales per-share from the prior 12 months. Sales per-share is the trailing 12 months of sales from the most recent trailing quarterly or semi-annual filings, whichever is most current, divided by the end of period reported count of common shares outstanding used to calculate basic earnings per share.

Each financial metric will create a separate score so that every company will have three scores. These three scores are averaged together to create one composite score for a company. This composite score is used to rank the companies in the next step in order to determine the sub-universe of securities.

3. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements, with each requirement being applied independently to the initial universe from the other requirements in this step, as of the Security Selection Date:

• Exclude the lowest ranked 25% of securities from the initial universe determined by the average of the three financial rankings described in step 2.

• Exclude the 20% of the initial universe with the lowest trailing six month total return.

• Exclude securities which do not have a policy of regular periodic cash dividends (quarterly, semiannual or yearly), or have omitted the most recent regular periodic cash dividend.

• Exclude securities with a market capitalization less than $200 million. Market capitalization is determined by the closing price as of the Security Selection Date.

• Exclude securities with a liquidity of less than $0.6 million. Liquidity is determined by the median trading volume in U.S. dollars looking back 90 days from the Security Selection Date (i.e., trading volume each day in shares multiplied by the closing price for the day as provided by FactSet Research Systems, Inc.).

• Exclude business development companies as identified by Bloomberg Industry Classification System sub-industry.

• Exclude mortgage real estate investment Trusts, as identified by GICS sub-industry.

• Exclude securities that have a pending cash or stock merger and acquisition or bankruptcy which will lead to delisting the security. Such events will be determined by reviewing the announced merger and acquisition data from Bloomberg.

• Exclude securities of the largest 500 companies of the initial universe by market capitalization (per FactSet).

4. Selection: Select from the sub-universe the fifty top dividend yielding securities (with higher rank given to larger market capitalization when yields are equal) and equally weight these securities as of the Security Selection Date so that each security will constitute 0.5% of the Trust’s final portfolio. Selected securities must adhere to following strategy limits as of the Security Selection Date:

• Maximum 20% weight in any GICS sector.

• Maximum 10% weight in any GICS industry.

Once an investment limitation has been reached, additional securities of that type will not be included in the Trust and the next highest yielding security will be used. Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date.

Guggenheim International Dividend Strategy

Thirty securities were selected seven business days prior to the Security Selection Date using the Security Selection Rules and the Portfolio Diversification & Concentration Rules outlined below.

Security Selection Rules:

In constructing the Trust’s portfolio, 30 securities were selected based on the following fundamentally based quantitative criteria as of the Security Selection Date. Except as set forth herein, the investment strategy utilizes information provided by Factset.

1. Start with an initial universe of securities that consists exclusively of all non-U.S. companies as categorized by Russell with equity securities listed on a U.S. exchange, excluding OTC traded securities.

2. Reduce the initial universe of securities to a sub-universe that consists exclusively of all securities that meet all of the following requirements:

• Market capitalization greater than $5 billion. Market capitalization is determined by the closing price as of the Security Selection Date.

• Minimum liquidity of $0.5 million. Liquidity is determined by the median 90-day trading volume in U.S. dollars using a 90-trading day look back from the Security Selection Date (i.e., trading volume in shares multiplied by the closing price for the day).

• Minimum three-year price history for each security’s primary equity listing, as designated by Factset. For ADR securities, the “parent equity listing” is generally the foreign-listed security that the depository receipt references. For companies that cross list across countries, Factset determines the “parent equity listing” based on their proprietary analysis of listing dates, country of domicile, and liquidity. For some foreign companies, the U.S.-listed security is also the “parent equity listing” if the foreign company chose only to list equity securities in the United States.

• Duplication screen so that in the event a parent company has multiple classes of securities that meet the above criteria, the class that has the greatest 90-day trading volume is considered for final selection. 

3. Dividend Yield Rank: Select from the sub-universe above the 30 securities, as of the Security Selection Date, with the highest arithmetic average of the three trailing yearly actual dividend yields. The three trailing yearly periods are defined as the full year of time that each end on the same month and day as the Security Selection Date for the current year, last year, and two years ago. Each yearly period’s actual dividend yield is measured as all dividends whose ex-dividend date fell within the yearly period, divided by the latest closing security price before the begin date of such yearly period. For example, if the Security Selection Date is March 12, 2012, then the prior yearly period includes March 13, 2011 to March 12, 2012, and the starting security price for this period is the last closing price of the security before the begin date, which was March 11, 2011 since the 13th was a Sunday. Securities are eligible for selection if their actual dividend yield exceeded the median actual dividend yield for all securities in the sub-universe in each of the three prior years. Median dividend yield is defined as the specific dividend yield that separates the higher half of the annual dividend yields of the sub-universe of securities from the lower half of the annual dividend yields of the sub-universe of securities. The 30 securities are subject to the Portfolio Diversification & Concentration Rules below.

Strategy Diversification & Concentration Rules:

The securities selected by this strategy will consist of 30 securities that are equally weighted as of the Security Selection Date so that each security will constitute 0.83% of the Trust’s final portfolio. These 30 securities will be selected using the Security Selection Rules outlined above and must also satisfy the Portfolio Diversification & Concentration Rules below:

1. Sector Diversification: The securities selected by this strategy must consist of securities from a minimum of six of the Global Industry Classification Standards (“GICS”) sectors, with no more than 25% of the strategy’s portfolio in any single GICS sector as of the Security Selection Date.

2. Geographical Diversification: The securities selected by this strategy must consist of securities from companies in at least 10 different countries (as categorized by Russell) with no more than 20% of the strategy’s portfolio from any single country as of the Security Selection Date.

If the initial strategy portfolio violates either diversification rule, then the lowest ranked security (using the Dividend Yield Rank) that violates either rule is replaced by the next highest ranked security that does not violate a diversification rule. This is continued until the diversification rules are satisfied.

Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date.

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.

• Securities selected according to this strategy may not perform as intended. The Trust is exposed to additional risk due to its policy of investing in accordance with an investment strategy. Although the Trust's investment strategy is designed to achieve the Trust's investment objective, the strategy may not prove to be successful. The investment decisions may not produce the intended results and there is no guarantee that the investment objective will be achieved.

• The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.

• The Trust invests in U.S.-listed foreign securities, a New York Registry Share and American Depositary Receipts (“ADRs”). The Trust’s investment in U.S.-listed foreign securities, a New York Registry Share and ADRs presents additional risk. ADRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. New York Registry Shares are created by a U.S. registrar so that securities of companies incorporated in the Netherlands may be traded on a U.S. exchange. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.

• 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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