The Large-Cap Core Portfolio, Series 20 ("Trust") seeks to maximize total return by investing in U.S.-listed 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 U.S.-listed stocks of companies that the Sponsor believes should be core holdings of a well-diversified 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.
See “Investment Policies” in Part B of the prospectus for more information.
Large Capitalization Stocks
A well-balanced portfolio is the foundation for many successful investment strategies. Advisors may use a mix of investments including stocks, bonds and cash to support a strategy they have established with their clients.
There are three main categories of stocks: large-cap, mid-cap and small-cap. Guggenheim Funds’ methodology has divided the equity market into the following market capitalizations: 72.5% large-cap, 15.0% mid-cap and 12.5% small-cap.
The Trust includes U.S.-listed stocks of large capitalization companies that the Sponsor believes should be core holdings of a well-diversified large-cap portfolio. This Trust includes stocks from all sectors of the U.S. economy.
The Sponsor selects U.S.-listed companies that it believes should be core holdings of a well-diversified U.S.-listed large-cap portfolio. To select the portfolio the Sponsor follows a 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-cap, mid-cap and small-cap). The stocks comprising the first (or largest) 72.5% of capitalization are classified as large-cap, 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 51 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.INDEX DEFINITIONS Russell 3000® Index (“Index”) measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable equity market. The Index is unmanaged and it is not possible to invest directly in the 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 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. In addition, Standard & Poor’s Rating Services lowered its long-term sovereign credit rating on the United States to “AA+” from “AAA.” Effects of the economic crisis can still be felt in many countries around the world and may have an impact on the securities held by the Trust.
• 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.
• 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 “Risk Factors” in Part B of the prospectus and “Investment Risks” in Part A 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 investment management business of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investments Advisors, LLC ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisors to the referenced funds.
© 2019 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.