Guggenheim High Beta Equity Portfolio Series 1

As of the initial date of deposit (the “Inception Date”), the Trust will invest at least 80% of the value of its assets in U.S.-listed stocks determined by the Sponsor to be “high beta” securities. Beta of a security is a number describing the relation of its returns with that of the market as a whole. By definition, the market has a beta of 1.0. A security whose returns vary more than the market’s returns have a beta greater than 1.0. A security whose returns vary less than the market’s returns have a beta less than 1.0. In general, stocks with higher beta tend to be more volatile and therefore riskier than those with lower beta. The Sponsor has selected securities that have a beta no less than 1.1 over the most recent two-year period according to its quantitative evaluation process. The Sponsor considers such securities as high beta securities. However, there is no assurance that the individual stocks selected for the portfolio will have a risk profile and provide returns consistent with the beta measurements assigned by the Sponsor.

The Trust employs a quantitative method that uses a multi-factor risk model that attributes the monthly returns of all companies in the selection universe based on exposure to common risk factors (referred to as “beta”) as well as company-specifc return that is not explained by the common risk exposures (referred to as “alpha”). The risk model seeks to target expected risk versus the desired benchmark, and uses rules-based mathematical models to try to predict future common factor returns, future company-specifc returns and the riskiness of the factors and individual companies. A mean-variance optimization step is used on the security selection date which aims to maximize predicted return while meeting all portfolio specific holding constraints and the overall portfolio risk limits.

The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC ("GPIM"), an affiliate of Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio.

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.
• Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. Starting in December 2007, economic activity declined across all sectors of the economy, and the United States experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Extraordinary steps have been taken by the governments of several leading countries to combat the economic crisis; however, the impact of these measures is not yet fully known and cannot be predicted.
• Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee 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 includes securities that the Sponsor has determined have a high beta. In general high beta stocks tend to be more volatile and therefore riskier than the securities market as a whole.
• The Trust includes securities issued by companies in the information technology sector. 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. Adverse developments in the sector may affect the value of your investment. 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 includes securities issued by companies in the energy sector. Companies in the energy sector are subject to volatile fluctuations in price and supply of energy fuels, and can be impacted by international politics and conflicts, including the unrest in Iraq and hostilities in the Middle East, terrorist attacks, the success of exploration projects, reduced demand as a result of increases in energy efficiency and energy conservation, natural disasters, clean-up and litigation costs associated with environmental damage and extensive regulation.
• The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of larger 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.
• The Trust invests in a U.S.-listed foreign security. The Trust’s investment in a foreign security presents additional risk. 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.
• 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 continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.