The S&P Dividend Aristocrats Select 25 Strategy Portfolio, Series 11 ("Trust") seeks attractive total return through capital appreciation and dividend income.
|Wrap Fee Price||$10.1689|
|Remaining Deferred Sales Charge||$0.1350|
|Mandatory Maturity Date||7/25/2019|
|NASDAQ Ticker Symbol||CACTKX|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.8650|
|Deferred Sales Charge Dates||
|Number of Holdings||25|
|Historical Annual Dividend Distribution||$0.2468|
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||23.31|
|Weighted Average Price/Book (P/B) Ratio||10.96|
|Weighted Average Market Cap (MM)||$73,589.99|
|US Common Stock||100.00%|
|Food & Staples Retailing||4.08%|
|Hotels Restaurants & Leisure||4.02%|
|Textiles Apparel & Luxury Goods||4.07%|
|Commercial Services & Supplies||4.02%|
|Trading Companies & Distributors||4.25%|
|Metals & Mining||3.95%|
|Oil Gas & Consumable Fuels||3.92%|
|Diversified Telecommunication Services||3.65%|
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 invests at least 80% of the value of its assets in common stocks that are included in the S&P 500 Dividend Aristocrats Index (the “Index”). The Index is comprised of companies within the S&P 500 that have followed a managed dividends policy of consistently increasing dividends every year for at least 25 years. As of March 31, 2018, the Index included securities with market capitalization ranges from approximately $6 billion to $344 billion.
Utilizing a unique rule based strategy, the Trust invests in 25 common stocks in the Index selected by the Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of Guggenheim Partners, LLC. The Trust invests in U.S.-listed common stocks, which may include the common stock of U.S. and non-U.S. companies, including issuers in emerging markets. In addition, the Trust may invest in companies of all market capitalizations. As a result of this strategy, the Trust is concentrated in the consumer products sector.
The Trust’s portfolio was constructed and the securities were selected twelve business days prior to the initial date of deposit (the “Security Selection Date”) using the following security selection rules:
1. Initial Universe: Begin with the Index as of the Security Selection Date.
2. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe by excluding securities priced higher than $500 per share or lower than $5 per share.
3. Rank on Fundamentals: Rank the remaining universe of securities from highest to lowest by the factors listed below. Each ranking is determined as of the Security Selection Date using the most recently reported information from S&P Compustat. Every company identified in the sub-universe is given a separate score for each of the three following financial metrics. A score of 1 is given for the lowest scoring company in each financial metric, a score of 2 is given to the next highest scoring company and this continues until each company is scored.
• Return on assets as provided by S&P Compustat and calculated as the latest four quarters of reported income divided by the most recent reported total assets.
• Return on equity as provided by S&P Compustat and calculated as the latest four quarters of reported income divided by the most recent reported common equity.
• Dividend yield as provided by S&P Compustat and calculated as the total of all regular dividends paid over the prior twelve months divided by the company’s stock price as of the most recent month end.
The three scores for each company are then added together to create the final composite score for the company. For example, if Company A scores a 2, 15 and 25, respectively, on the above metrics, it will have a composite score of 42.
4. Selection: Select the top 25 securities with the highest composite score from the criteria above and apply an equal weight to each security.
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 is concentrated 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.
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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• Not FDIC Insured • No Bank Guarantee • May Lose Value
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