The Dow Jones Value RBP Dividend Focus Portfolio, Series 8 (“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.
See “Investment Policies” in Part B of the prospectus for additional information.
The Trust’s portfolio is constructed and the securities are selected approximately seven 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:
• Begin with all companies listed in the Dow Jones U.S. Top-Cap Value Total Stock Index, which is a combination of the Dow Jones U.S. Large-Cap Value Total Stock Index and the Dow Jones U.S. Mid-Cap Value Total Stock Market Index.
• Exclude companies with a price per share of less than $5 and more than $500.
• Exclude companies with a 30-day average daily traded value of less than $1 million.
• Exclude companies with an indicated dividend yield of 0. Indicated dividend yield is a company’s most recently announced dividend, annualized based on dividend frequency and divided by market price (abnormal or special dividends are not included).
• Exclude 20% of the companies with the lowest indicated dividend yield.
• Select the 100 companies according to the Required Business Performance® (“RBP®”) methodology described below that have the highest probability percentage.
• Select the top 50 companies by indicated dividend yield and weight the portfolio by indicated dividend yield, subject to a 5% cap for each individual security on the day the strategy generates the final portfolio. (A company’s weight in the portfolio is derived by dividing the indicated dividend yield of each company by the sum of all indicated dividend yields for the 50 selected companies). Please note that due to the fluctuating nature of security prices, the weighting of an individual security in the Trust may be greater than 5% of the portfolio after the portfolio selection date.
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%).
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:
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 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 Partners Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Fund Management (Europe) Limited, Guggenheim Partners Japan Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.
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• 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.