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S&P Global Dividend Aristocrats Select 25 Strategy Portfolio Series 3

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Investment Objective

The S&P Global Dividend Aristocrats Select 25 Strategy Portfolio, Series 3 ("Trust") seeks attractive total return through capital appreciation and dividend income.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Deposit Information

Inception Date 4/6/2017
Non-Reoffered Date 7/7/2017
Mandatory Maturity Date 7/9/2018
Ticker Symbol CGACCX
Trust Structure RIC
Inception Unit Price $10.0000
Maturity Price (as of 7/9/18) $9.7822

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

Under normal circumstances, the Trust invests substantially all of the value of its assets in common stocks that are included in the S&P Global Dividend Aristocrats Index (the “Index”). The Index is comprised of companies within the S&P Global Broad Market Index (the “S&P Global BMI Index”) that have followed a managed dividends policy of increasing or stable dividends for at least 10 consecutive years. As of March 31, 2017, the Index included securities with market capitalization ranges from approximately $1 billion to $255 billion.

The common stocks held by the Trust may include the common stocks of U.S. and non-U.S. companies, including issuers located in emerging markets countries. As of the date of deposit, the Trust will invest at least 40% of its assets in the securities of non-U.S. companies located in at least three different countries, as defined by Russell Investments. The Trust will invest in securities of companies with small-, mid- and large market capitalization.

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.

As a result of this strategy, the Trust invests significantly in the consumer discretionary sector, financials sector and telecommunications services sector.

Selection Criteria

The Trust’s portfolio was constructed and the securities were selected fourteen business days prior to the Trust’s 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 per the following criteria:

  • Exclude securities that are neither U.S.-listed securities nor American Depositary Receipts (“ADRs”);
  • Exclude securities that have an average daily trading volume (using the most recent complete one month’s daily average as reported by S&P Compustat) of less than $1 million; and Exclude securities that are priced higher than $500 per share or lower than $5 per share.

3. Rank and screen 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 ranked highest to lowest for each of the following financial metrics:

  • Dividend yield 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 highest 2% of companies, as ranked by dividend yield, are screened out.
  • Return on assets calculated as the latest four quarters of reported income divided by the most recent reported total assets. The lowest 20% of companies, as ranked by return on assets, are screened out.
  • One-year trading volume change calculated as the most recent month’s traded dollar value divided by the sum of the last twelve month’s traded dollar values. The lowest 3% of companies, as ranked by one-year trading volume change, are screened out.

    If these screens result in fractional numbers of companies being selected for elimination from the universe, the resulting number of companies to be screened out are rounded up to the nearest whole number.

4. Selection: The remaining companies are then ranked by dividend yield, as defined above. The highest ranked stocks are selected for the portfolio in order of the highest rank to lowest. Select the top 25 securities and apply an equal weight to each security.

If any country or sector is weighted more than 36% of the portfolio, additional securities of that type will not be included in the Trust and the next highest yielding security will be selected.

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. The portfolio is not managed and will not be rebalanced to track changes in the Index.

INDEX DEFINITION: The S&P Global BMI Index. is a rules-based index designed to measure global stock market performance. The index covers all publicly listed equities with float-adjusted market values of $100 million or more and annual dollar value traded of at least $50 million in all included countries. Indices are statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. The S&P Global BMI Index is unmanaged and it is not possible to invest directly in the S&P Global BMI Index. The historical performance of the S&P Global BMI Index is shown for illustrative purposes only; it is not meant to forecast, imply or guarantee the future performance of any particular investment or the trust, which will vary. Securities in which the trust invests may differ from those in the S&P Global BMI Index. The trust will not try to replicate the performance of these indices and will not necessarily invest any substantial portion of its assets in securities in the S&P Global BMI 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 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.
  • 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 significantly in the consumer discretionary sector. As a result, the factors that impact the consumer discretionary sector will likely have a greater effect on this trust than on a more broadly diversified trust. Consumer discretionary products are products purchased by consumers on a discretionary basis and are not necessities. The success of consumer discretionary companies, which manufacture products and provide discretionary services directly to the consumer, is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence. Success also depends income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer discretionary products in the marketplace.
  • The trust invests significantly in the financial sector. As a result, the factors that impact the financial sector will likely have a greater effect on this trust than on a more broadly diversified trust. Companies in the financial sector include banks, insurance companies and investment firms. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments. Financial sector companies are especially subject to the adverse effects of economic recession, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business.
  • The trust invests significantly in the telecommunication services sector. As a result, the factors that impact the telecommunication services sector will likely have a greater effect on this trust than on a more broadly diversified trust. General risks of investing in telecommunications services companies include rapidly changing technology, rapid product obsolescence or loss of patent protection, cyclical market patterns, evolving industry standards and frequent new product introductions. Competitive pressures are intense and stocks of telecommunications services companies can experience rapid volatility.
  • The trust invests in ADRs and U.S.- listed foreign securities. The trust’s investment in ADRs and 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- and mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Small- and midcapitalization 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.
  • 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 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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