The Dow Jones Value RBP Dividend Focus Portfolio, Series 5 ("Trust") seeks to provide total return primarily through capital appreciation and current dividend income by investing in a portfolio of common stocks.
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’s investment strategy uses a quantitative selection process developed by Transparent Value, LLC (“Transparent Value”), an affiliate of the Sponsor, to help the Sponsor determine the constituents of the portfolio.
The Trust’s portfolio is constructed and the securities are selected approximately six business days prior to the initial date of deposit (the “Inception Date”) using the methodology described below.
In constructing the Trust portfolio, 50 securities will be selected based on the following fundamentally-based quantitative criteria:
Required Business Performance®
RBP® seeks to measure the performance that is implied in the price of a company’s stock. To determine the RBP® probability for a given company, the company’s required revenue (revenue that the company is required to generate over the next twelve months) is calculated through a ten-year forward discounted free cash flow (“FCF”) model. The ten-year forward FCF model includes the perpetuity growth rate, capital expenditures, operating margins and potentially scaling forward growth rates. With this required forward FCF and historical company performance from the past twelve quarters, a distribution curve is fit to the data and derives an RBP® probability (expressed as a percentage from 0 to 100%).
Transparent Value, LLC
Transparent Value was established in 2003 with a dedicated vision: the pursuit of delivering sustainable investment returns across global equity markets by introducing a new way to measure the equity value of publicly traded companies.
Transparent Value calculates the Required Business Performance® probabilities used in the Dow Jones RBP Indexes? and licenses the RBP® probabilities exclusively to Dow Jones Indexes? for the construction of domestic and global indexes.
Since 2003, Transparent Value has grown into a financial services firm with subsidiaries, including Transparent Value Advisors LLC, a U.S. registered adviser and Transparent Value Pvt., Ltd., its Indian knowledge center. Guggenheim Funds will pay Transparent Value a fee for its assistance in the selection of the Trust portfolio. Transparent Value is an affiliate of the Sponsor.
The Dow Jones U.S. Total Stock Market Index is an all-inclusive measure composed of all U.S. equity securities with readily available prices. This broad index is sliced according to stock-size segment, style and sector to create distinct sub-indexes that track every major segment of the market. Size-segments are defined based on full market capitalization rankings within the Dow Jones U.S. Total Stock Market Index as follows: Dow Jones U.S. Large-Cap Total Stock Market Index: Stocks ranked 1-750, Dow Jones U.S. Mid-Cap Total Stock Market Index: Stocks ranked 501-1000. The indexes are unmanaged and it is not possible to invest directly in the indexes.
The Dow Jones U.S. Top-Cap Value Total Stock Index, Dow Jones U.S. Large-Cap Value Total Stock Index, Dow Jones U.S. Mid- Cap Value Total Stock Market Index, Dow Jones U.S. Top-Cap Growth Total Stock Index, Dow Jones U.S. Large-Cap Growth Total Stock Index, Dow Jones U.S. Mid-Cap Growth Total Stock Market Index, Dow Jones U.S. Top-Cap Total Stock Index, Dow Jones U.S. Large-Cap Total Stock Index, and Dow Jones U.S. Mid-Cap Total Stock Market Index are products of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME”), and have been licensed for use. “Dow Jones U.S. Top-Cap Value Total Stock Index, Dow Jones U.S. Large-Cap Value Total Stock Index, Dow Jones U.S. Mid-Cap Value Total Stock Market Index, Dow Jones U.S. Top-Cap Growth Total Stock Index, Dow Jones U.S. Large-Cap Growth Total Stock Index, Dow Jones U.S. Mid- Cap Growth Total Stock Market Index, Dow Jones U.S. Top-Cap Total Stock Index, Dow Jones U.S. Large-Cap Total Stock Index, and Dow Jones U.S. Mid-Cap Total Stock Market Index, and “Dow Jones Indexes” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), and have been licensed for use for certain purposes by Guggenheim Funds Distributors, Inc. (“Guggenheim Funds”) and Guggenheim Funds’ Dow Jones Value RBP Dividend Focus Portfolio, Series 4 is not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates. Dow Jones, CME and respective affiliates make no representation or warranty, express or implied, to the owners of the Trusts or any member of the public regarding the advisability of trading in the Trusts.
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:
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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• Not FDIC Insured • No Bank Guarantee • May Lose Value
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