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Quality Quantamental Portfolio Series 3

Trust Resources
Fact Card
Prospectus
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Investment Objective

The Quality Quantamental Portfolio, Series 3 ("Trust") seeks to provide long-term capital appreciation.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price $10.0809
Wrap Fee Price $9.9444
Liquidation Price $9.9444
Remaining Deferred Sales Charge $0.1350

CUSIPs

Monthly-Cash 40174H785
Monthly-Reinvest 40174H793
Monthly-Fee/Cash 40174H801
Monthly-Fee/Reinvest 40174H819

 

Deposit Information

Inception Date 5/15/2019
Non-Reoffered Date 8/15/2019
Mandatory Maturity Date 8/17/2020
NASDAQ Ticker Symbol CQQPCX
Trust Structure Grantor
Inception Unit Price $10.0000
Inception Liquidation Price $9.8650
Deferred Sales Charge Dates Sep 2019
Oct 2019
Nov 2019
Term 15 Months
Number of Holdings 53
Historical Annual Dividend Distribution* $0.1174

* The Historical Annual Dividend Distribution (HADD) is as of the day prior to trust deposit and subject to change. There is no guarantee the issuers of the securities included in the Trust will declare dividends or distributions in the future. The HADD of the securities included in the Trust is for illustrative purposes only and is not indicative of the Trust’s distribution rate. The HADD is the weighted average of the trailing twelve-month distributions paid by the securities included in the portfolio and is reduced to account for the effects of fees and expenses, which will be incurred when investing in the Trust. The HADD will vary due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio.


Portfolio Holdings Analysis

All data is subject to change daily. Data may differ from the prospectus due to different data sources or market changes. Please refer to prospectus for additional information about the trust including the portfolio section criteria. Source: FactSet Research Systems Inc. unless otherwise noted. The total percentages may not be equal to 100% due to rounding. N/A indicates that certain securities have not been identified and/or classified by the data provider. A unit is a combination of securities or types of securities traded together.

Fundamental Data

Weighted Average Price/Earnings (P/E) Ratio 26.71
Weighted Average Price/Book (P/B) Ratio 7.29
Weighted Average Market Cap (MM) $235,511.02

Market Cap & Style Breakdown

Value Growth Total
Large-Cap 30.65% 41.40% 72.05%
Mid-Cap 14.39% 12.69% 27.07%
Small-Cap -- 0.88% 0.88%
Total 45.04% 54.96% 100.00%

Asset Class

US Common Stock 94.68%
REIT 3.74%
Unit 1.58%
Total 100.00%

Market Cap Breakdown

Style Breakdown

Sector & Industry Breakdown

Information Technology 21.15%
 Communications Equipment 3.08%
 IT Services 6.54%
 Semiconductors & Semiconductor Equipment 2.20%
 Software 9.34%
Health Care 14.60%
 Health Care Equipment & Supplies 4.98%
 Health Care Providers & Services 4.12%
 Health Care Technology 2.18%
 Pharmaceuticals 3.31%
Financials 13.86%
 Banks 6.67%
 Capital Markets 3.79%
 Consumer Finance 1.99%
 Insurance 1.41%
Consumer Discretionary 10.22%
 Hotels Restaurants & Leisure 1.58%
 Household Durables 1.45%
 Internet & Direct Marketing Retail 3.18%
 Specialty Retail 4.02%
Communication Services 10.06%
 Diversified Telecommunication Services 2.09%
 Interactive Media & Services 7.97%
Industrials 9.96%
 Electrical Equipment 2.79%
 Machinery 5.23%
 Professional Services 1.95%
Consumer Staples 6.62%
 Beverages 2.14%
 Food & Staples Retailing 1.14%
 Food Products 1.31%
 Tobacco 2.03%
Energy 6.13%
 Oil Gas & Consumable Fuels 6.13%
Real Estate 3.74%
 Equity Real Estate Investment Trusts (REITs) 3.74%
Utilities 3.66%
 Electric Utilities 3.66%
Total 100.00%

Country Breakdown

United States 100.00%
Total 100.00%

Regional Breakdown

North America 100.00%
Total 100.00%

Developed Status

Developed 100.00%
Total 100.00%

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.


Principal Investment Strategy

Under normal circumstances, the Trust invests at least 80% of the value of its assets in securities that are selected using a Quantamental investment strategy. Quantamental investing is the combination of quantitative and fundamental investment techniques. Quantitative investment techniques use objective financial data to create both risk and return models. Fundamental investment techniques use both qualitative and quantitative information to evaluate a security’s valuation and investment risks. The Trust will utilize quantitative models to rank securities by various quality measures and will select securities that are attractive on a fundamental basis. By applying this investment strategy, the Sponsor, with the assistance of Wells Fargo Securities Equity Research Team, will select a portfolio of U.S.-listed common stocks that it believes may be able to deliver an attractive risk-adjusted return compared to the broader securities markets. The U.S.-listed common stocks may include the securities of U.S.-listed foreign securities. The Trust may invest in real estate investment Trusts. As a result of this strategy, the Trust invests significantly in the information technology sector.

Selection Criteria

The selection process for the final portfolio integrates quantitative investment techniques along with bottom-up fundamental stock selection research to seek to create an attractive risk-adjusted portfolio. The portfolio is selected by applying the following criteria:

  • The starting universe consists of securities that are covered by the Wells Fargo Securities Equity Research Team and that are rated as outperform.
  • From this starting universe, remaining securities must have a market capitalization of $3 billion or more.
  • Next, the remaining securities are screened for positive quality factors, which include analyzing a security’s net debt; earnings before interest, tax, depreciation and amortization; return on equity and net profit margins. Securities that are selected must qualify for the top two quintiles of the Wells Fargo Securities Equity Research Team’s Quality factor ranking.
  • Next, securities that are not rated in the top two quintiles of the Wells Fargo Securities Equity Research Team’s Momentum factor ranking are eliminated.
  • The remaining securities then undergo a quantitative analysis based upon market sector, market capitalization and market volatility. The market volatility measurement includes a number of different time horizons, including but not limited to 12-month realized volatility.
  • The final portfolio will include approximately 53 securities.

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 information technology sector. As a result, the factors that impact the information technology sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. 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 small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of large-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.
  • 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 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.

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