The trust seeks to maximize total return primarily through capital appreciation by investing in domestic stocks of large capitalization companies.
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 includes domestic stocks of companies that the sponsor believes are core holdings of a well-diversified domestic large capitalization portfolio. The trust includes stocks from all sectors of the U.S. economy. The sponsor selects stocks 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 large-cap portfolio, which may include real estate investment trusts (“REITs”). To select the portfolio the sponsor follows a very disciplined process which includes both quantitative screening and qualitative analysis.
The sponsor begins with the companies that currently comprise the Russell 3000® Index and separates these companies into three capitalization groups (large, mid and small-cap). The stocks comprising the first (or largest) 72.5% of capitalization are classified as largecap, the stocks comprising the next 15% of capitalization are classified as mid-cap and the remaining 12.5% are classified as small-cap. The sponsor then takes the large-cap group and separates these companies into twenty groups based on style and Global Industry Classification Standard (“GICS”) sector. Please note that due to the fluctuating nature of security prices, a company’s classification as large-cap, mid-cap or small-cap may change after its selection for the portfolio. The sponsor then reduces the universe to approximately 250 companies by performing quantitative screening, which may be primarily based on, but not limited to, the following factors:
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 may screen for companies with a history of (and prospects for) above average growth of dividends, sales and earnings.
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 250 companies to approximately 50 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) above 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.
For the final step, the sponsor weights the selected stocks such that the portfolio has a style and sector representation that closely resembles that of the Russell 1000® Index.
The Russell 1000® Index
The Russell 1000® Index consists of the largest 1000 companies in the Russell 3000® Index. This Index represents the universe of large-capitalization stocks from which most active money managers typically select.
The Russell 3000® Index
The Russell 3000® Index is composed of 3000 large U.S. Companies, as determined by market capitalization. This portfolio of Securities represents approximately 98% of the investable U.S. equity market. The Russell 3000® Index is comprised of stocks within the Russell 1000® and the Russell 2000® Indices.
It is not possible to invest directly in the Russell 1000® Index or the Russell 3000® Index. The Trust will not try to replicate the per formance of the Russell 1000® Index or the Russell 3000® Index and will not necessarily invest any substantial portion of its assets in securities in the Indices. 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.
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