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Technological Innovation Portfolio Series 16

Trust Resources
Fact Card
Prospectus
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Investment Objective

The Technological Innovation Portfolio, Series 16 ("Trust") seeks to provide the potential for capital appreciation.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price $10.3863
Wrap Fee Price $10.1507
Liquidation Price $10.1507
Remaining Deferred Sales Charge $0.2250

CUSIPs

Monthly-Cash 40176C222
Monthly-Reinvest 40176C230
Monthly-Fee/Cash 40176C248
Monthly-Fee/Reinvest 40176C255

 

Deposit Information

Inception Date 9/17/2020
Non-Reoffered Date 3/15/2021
Mandatory Maturity Date 9/19/2022
NASDAQ Ticker Symbol CATEPX
Trust Structure Grantor
Inception Unit Price $10.0000
Inception Liquidation Price $9.7750
Deferred Sales Charge Dates Apr 2021
May 2021
Jun 2021
Term 2 Years
Number of Holdings 27

Historical Annual Dividend Distribution*

Per Unit $0.0364
Rate 0.35%
Rate Fee Based 0.36%

* 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.


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 34.52
Weighted Average Price/Book (P/B) Ratio 10.94
Weighted Average Market Cap (MM) $317,478.54

Market Cap & Style Breakdown

Value Growth Total
Large-Cap 13.28% 44.63% 57.90%
Mid-Cap 11.05% 23.10% 34.16%
Small-Cap -- 7.94% 7.94%
Total 24.33% 75.67% 100.00%

Asset Class

US Common Stock 92.65%
Non US Common Stock 7.35%
Total 100.00%

Market Cap Breakdown

Style Breakdown

Sector & Industry Breakdown

Information Technology 67.94%
 Communications Equipment 8.40%
 IT Services 3.58%
 Software 48.24%
 Technology Hardware Storage & Peripherals 7.72%
Health Care 12.87%
 Biotechnology 6.18%
 Health Care Equipment & Supplies 2.97%
 Life Sciences Tools & Services 3.72%
Communication Services 11.15%
 Entertainment 3.43%
 Interactive Media & Services 7.72%
Industrials 4.41%
 Machinery 4.41%
Consumer Discretionary 3.62%
 Internet & Direct Marketing Retail 3.62%
Total 100.00%

Country Breakdown

United States 92.65%
Canada 3.70%
France 3.65%
Total 100.00%

Regional Breakdown

North America 96.35%
West Europe 3.65%
Total 100.00%

Developed Status

Developed 100.00%
Total 100.00%

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 technologically innovative. Technologically innovative companies are innovative companies that create new technology or use current technology in a new way to create new growth opportunities. These technological innovations are being engineered and applied in multiple sectors of the economy to improve corporate profit, marketing and operations as well as the efficiency, productivity and enjoyment in the daily lives of individuals.

The Trust consists of companies that the Sponsor feels have demonstrated a capacity to be innovative or are involved in an industry that has been involved in technological advances in various fields, including, but not limited to, health sciences, global security, information access and manufacturing improvements. The U.S.-listed common stocks held by the Trust may include the common stocks of U.S. and non-U.S. companies. The foreign securities that may be held by the Trust may include American Depositary Receipts (“ADRs”). As a result of this strategy, the Trust is concentrated in the information technology sector.

Selection Criteria

The Sponsor selects companies it believes are contributing to some of today’s largest technological innovations. The Trust may invest in small-, mid- and large-capitalization companies, which may include foreign companies. The Sponsor begins with a universe of approximately 65 securities of companies that the Sponsor believes to be innovative. The Sponsor then reduces the initial universe of securities by following a disciplined process based on, but not limited to, the following factors:

  • Valuation. The Sponsor may screen for reasonably valued companies based on measures such as price-to-earnings, price-to-book and price-to-cash flow.
  • Growth. The Sponsor may screen for companies with a history of better than average growth of revenues, earnings and dividends (if applicable).
  • Profitability. The Sponsor may screen for companies with a history of consistent and high profitability as measured by return-on-assets, return-on-equity, gross margin and net margin.
  • Liquidity. The Sponsor may screen for companies whose shares may not trade frequently enough to be able to be included in a portfolio.
  • Balance Sheet. The Sponsor favors companies that possess overall financial strength and exhibit balance sheet improvements relative to their peers and the marketplace.
  • Industry Leadership. The Sponsor favors companies that possess a strong competitive position among their domestic and global peers.

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. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices, which could negatively impact the value of the Trust. Additionally, event such war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may adversely affect the economy, various markets and issuers. Recently, the outbreak of a novel and highly contagious form of coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant volatility in certain markets. Many governments and businesses have instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The potential impacts are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses. Any adverse event could materially and negatively impact the value and performance of Trust and the Trust’s ability to achieve its investment objectives. 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.
  • The Trust is concentrated in the information technology sector. As a result, the factors that impact the information technology sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Companies involved in this sector must contend with rapid changes in technology, intense competition, government regulation and the rapid obsolescence of products and services. Furthermore, sector predictions may not materialize and the companies selected for the Trust may not represent the entire sector and may not participate in the overall sector growth.
  • The Trust invests in U.S.-listed foreign securities and an ADR. The Trust’s investment in U.S.-listed foreign securities presents additional risk. ADRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. 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.
  • 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.
  • 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 may be susceptible to potential risks through breaches in cybersecurity. A breach in cybersecurity refers to both intentional and unintentional events that may cause the Trust to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Sponsor of the Trust to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cybersecurity breaches of the Trust’s third-party service providers, or issuers in which the Trust invests, can also subject the Trust to many of the same risks associated with direct cybersecurity breaches.
  • The Trust is subject to risks arising from various operational factors and their service providers. Operational factors include, but not limited to, human error, processing and communication errors, errors of the Trust’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Additionally, the Trust may be subject to the risk that a service provider may not be willing or able to perform their duties as required or contemplated by their agreements with the Trust. Although the Trust seeks to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
  • 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 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 Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.

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