The ARK Early Stage Disruptors Portfolio Series 3 ("Trust") seeks to provide the potential for capital appreciation.
|Wrap Fee Price||$8.5009|
|Remaining Deferred Sales Charge||$0.2250|
|Mandatory Maturity Date||5/6/2024|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.7750|
|Deferred Sales Charge Dates||
|Number of Holdings||25|
|Rate Fee Based||0.00%|
* The Historical Annual Dividend Distribution (HADD) per unit is as of the day prior to trust deposit and subject to change. The HADD per unit is the weighted average of the trailing twelve-month distributions paid by the securities included in the portfolio. The HADD rate is based on the HADD divided by the current offer price and recalculated daily. Both the HADD per unit and the rate shown are reduced to account for the effects of fees and expenses, which will be incurred when investing in the Trust. The HADD per unit and rate will vary due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio. There is no guarantee the issuers of the securities included in the Trust will declare dividends or distributions in the future. The HADD of the securities included in the Trust is for illustrative purposes only and is not indicative of the Trust’s distribution. Due to the negative economic impact across many industries caused by the recent COVID-19 outbreak, certain issuers of the securities included in the trust may elect to reduce the amount of, or cancel entirely, dividends and/or distributions paid in the future. As a result, the HADD figure will likely be higher, and in some cases significantly higher, than the actual distribution rate achieved by the trust.
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||3.81|
|Weighted Average Price/Book (P/B) Ratio||2.91|
|Weighted Average Market Cap (MM)||$3,561.10|
|US Common Stock||95.43%|
|Non US Common Stock||4.57%|
|Health Care Providers & Services||16.25%|
|Health Care Technology||2.97%|
|Life Sciences Tools & Services||8.00%|
|Electronic Equipment Instruments & Components||4.59%|
|Technology Hardware Storage & Peripherals||4.79%|
|Diversified Telecommunication Services||8.43%|
|Interactive Media & Services||2.14%|
|Diversified Consumer Services||1.99%|
|Hotels Restaurants & Leisure||2.01%|
|Aerospace & Defense||3.88%|
|Road & Rail||2.35%|
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 companies that the Sponsor believes are early stage disruptors. “Disruptors” are leading innovative companies that stimulate substantial growth or create new markets while also disrupting existing sectors. An innovative company is one that introduces a technologically enabled new product or service that the Sponsor believes may change an industry by creating simplicity and accessibility, while possibly driving down costs. An early stage disruptor is either: 1) a newer public company that the Sponsor believes is a disruptor company and has the potential for future long-term growth, or 2) a company that has introduced a technologically enabled product or service that is in the early stages of development and has the potential for future long-term growth.
The Trust will invest in securities that the Sponsor believes are early stage disruptors that are involved in at least one of the following five innovation platforms: DNA sequencing, robotics, energy storage, artificial intelligence and blockchain technology. Each innovation platform has associated transformative technologies and while the Trust may be exposed to some of the associated transformative technologies, the Trust may not have exposure to all of them. The associated transformative technologies for the innovation platforms are:
The Trust does not invest directly in cryptocurrencies or invest indirectly in cryptocurrencies through derivative instruments or other investment vehicles, such as exchange-traded funds or other funds, that seek to track the price movements of one or more cryptocurrencies. Therefore, the Trust is not expected to track the price movements of any cryptocurrencies. Additionally, the Trust will not invest in initial coin offerings.
The Sponsor has selected ARK Investment Management LLC (“ARK”) to serve as the Trust’s as portfolio consultant. ARK will recommend securities for the portfolio that it believes possess the potential to achieve the Trust’s investment objective and follow the Trust’s principal investment strategies.
The Trust will invest in U.S.-traded equities, which may include the common stocks of U.S. and non-U.S. companies or American Depositary Receipts (“ADRs”). The non-U.S. equities may include the securities of companies located in emerging markets. The Trust may invest in companies of any market capitalization but will be significantly invested in small- and mid-capitalization companies. As a result of this strategy, the Trust is concentrated in the health care sector and invests significantly in the information technology sector.
The Sponsor, with the assistance of ARK, selects companies that it believes are early stage disruptors. When recommending securities, ARK identifies five innovation platforms that it believes are transforming multiple sectors through the convergence and adoption of technology and enabling long-term investment opportunities around disruptive innovation: DNA sequencing, robotics, energy storage, artificial intelligence and blockchain technology. To identify securities within these innovation platforms, ARK utilizes top-down and bottom-up investment analyses.
ARK uses top-down research to define the investment universe of securities. ARK gathers and uses research from many sources to identify multi-year value-chain transformations, which are multi-year changes in a business model that encompasses the full range of activities needed to create a product or service. By anticipating and quantifying multi-year value-chain transformations, which may be caused by technologically enabled disruptive innovation, ARK believes that it can identify securities that may be able to capitalize on these opportunities, benefit from the innovation platforms and provide significant outperformance.
After identifying the investment universe, ARK scores the potential investments based on the following six key metrics by inputting the values into a proprietary scoring system to quantify the companies:
From this analysis, ARK suggests a portfolio of securities that it believes consists of early stage disruptors that present the best risk-reward opportunities.
ARK Investment Management LLC
ARK Investment Management LLC is a federally registered investment adviser and privately held investment firm with $39.8 billion assets under management as of March 31, 2022. Specializing in thematic investing in disruptive innovation, the firm is rooted in over 40 years of experience in identifying and investing in innovations that should change the way the world works. Through its open research process, ARK identifies companies that it believes are leading and benefiting from cross-sector innovations such as robotics, energy storage, DNA sequencing, artificial intelligence, and blockchain technology.
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:
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 following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Partners Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Fund Management (Europe) Limited, Guggenheim Partners Japan Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.
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