The trust seeks to maximize total return primarily through capital appreciation.
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.
This information does not constitute an offer to sell or a solicitation of any offer to buy: nor shall there be any sale of these securities in any state where the offer, solicitation, or sale is not permitted.
Principal Investment Strategy
The trust consists of 44 stocks classified as being in the information technology sector by the Global Industry Classification Standard (“GICS”). The trust is diversified across the information technology sector and includes stocks of companies from the following industries: communications equipment, computers and peripherals, electronic equipment and instruments, internet software and services, IT services, office electronics, semiconductors and semiconductor equipment and software. The sponsor selects stocks for the trust within the sector that it believes have the potential to achieve the trust’s investment objective.
The sponsor selects domestic companies that it believes are core holdings of a well-diversified domestic technology portfolio. To select the portfolio the sponsor follows a very disciplined process which includes both quantitative and qualitative analysis. The sponsor begins with the approximately 500 companies that are in the Russell 3000 Index and are classified as being in the information technology sector. The sponsor then reduces the 500 companies to approximately 150 by performing quantitative screening, which may be primarily 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.
The sponsor then reduces the 150 companies to 44 by performing qualitative analysis, which may be primarily based on, but not limited to, the following factors:
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.
Valuation. The sponsor favors companies whose valuations appear to be attractive based on measures such as price-to-earnings, price-to-book, and price-to-cash flow.
Growth. The sponsor favors companies with a history of (and prospects for) better than average growth of revenues, earnings and dividends (if applicable).
Profitability. The sponsor favors companies with a history of (and prospects for) consistent and high profitability as measured by return-on-assets, return-on-equity, gross margin and net margin.
The Russell 3000® Index
The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. As of the latest reconstitution, the average market capitalization was approximately $81.646 billion; the median market capitalization was approximately $0.941 billion. The index had a total market capitalization range of approximately $476.462 billion to $25 million. It is not possible to invest directly in the Russell 3000® Index. The Trust will not try to replicate the performance of the Russell 3000® Index and will not necessarily invest any substantial portion of its assets in securities in the Index. There is no guarantee that the perceived intrinsic value of a security will be realized.
Risks and Other Considerations
As with all investments, you can lose money by investing in the trust. The trust also might not perform as well as you expect. This can happen for reasons such as these:
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.
© 2021 Guggenheim Investments. All Rights Reserved.
Research our firm with FINRA Broker Check.
• Not FDIC Insured • No Bank Guarantee • May Lose Value
This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. Investing involves risk, including the possible loss of principal.