The Guggenheim US SMID High Dividend Portfolio, Series 28 ("Trust") seeks to provide dividend income.
|Wrap Fee Price||$10.2328|
|Remaining Deferred Sales Charge||$0.1350|
|Mandatory Maturity Date||7/18/2019|
|NASDAQ Ticker Symbol||CSMHCX|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.8650|
|Deferred Sales Charge Dates||
|Number of Holdings||50|
|Historical Annual Dividend Distribution||$0.4773|
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.
|Weighted Average Price/Earnings (P/E) Ratio||32.04|
|Weighted Average Price/Book (P/B) Ratio||2.04|
|Weighted Average Market Cap (MM)||$3,128.27|
|US Common Stock||88.17%|
|Diversified Consumer Services||2.02%|
|Hotels Restaurants & Leisure||6.06%|
|Thrifts & Mortgage Finance||3.95%|
|Commercial Services & Supplies||6.62%|
|Trading Companies & Distributors||2.27%|
|Equity Real Estate Investment Trusts (REITs)||9.96%|
|Real Estate Management & Development||2.11%|
|Energy Equipment & Services||1.91%|
|Oil Gas & Consumable Fuels||9.01%|
|Metals & Mining||1.98%|
|Paper & Forest Products||2.06%|
|Semiconductors & Semiconductor Equipment||2.43%|
|Diversified Telecommunication Services||2.05%|
|Health Care Equipment & Supplies||1.93%|
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 will invest at least 80% of the value of its assets in dividend-paying common stocks of U.S. incorporated companies with small- and mid-capitalizations. The Trust seeks to provide dividend income that is greater than its benchmark, the Russell 2500TM Index. The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio. The Sponsor and GPIM believe that companies that distribute significant dividends on a consistent basis demonstrate strong financial strength and positive performance relative to their peers. The U.S.-listed common stocks held by the Trust may include the common stocks of U.S. and non-U.S. companies. The Trust will invest in securities of companies with small- and mid- market capitalization and may invest in real estate investment Trusts. The small- and mid-capitalization companies will be the 2,500 smallest companies by market capitalization in the Russell 3000® Index.
As a result of this strategy, the Trust invests significantly in the consumer products sector.
The Trust’s portfolio was constructed and the securities were selected five business days prior to the initial date of deposit (the “Security Selection Date”) using the Security Selection Rules outlined below.
Security Selection Rules:
In constructing the Trust’s portfolio, 50 securities were selected based on the following fundamentally based quantitative criteria:
1. Initial Universe: Start with an initial universe of all securities in the Russell 3000® Index as of the Security Selection Date.
2. Rank on Fundamentals: Rank every company identified in the initial universe against other companies in the same sector, as defined by Global Industry Classification Standard (GICS). Each ranking is determined as of the Security Selection Date using the most recently reported information and uses a scale of 1 through 10 (1 representing the highest scoring 10% in the sector and 10 representing the lowest scoring 10% in the sector):
• Return on assets as provided by S&P Compustat, and calculated as latest four quarters of reported operating income divided by the average of most recent reported total assets and year ago reported total assets.
• Earnings before interest, taxes, depreciation and amortization for the latest four quarters divided by enterprise value, as provided by S&P Compustat. Enterprise value is determined by adding the equity market capitalization as of the most recent closing price with the total outstanding long term and short term debt as determined by the most recently available balance sheet, and then subtracting any cash and short term investments as determined by the most recently available balance sheet.
• Year-over-year growth in sales per share, as provided by S&P Compustat. Trailing year-over-year growth is the percentage change in sales per-share for the trailing 12 months versus the sales per-share from the prior 12 months. Sales per-share is the trailing 12 months of sales from the most recent trailing quarterly or semi-annual filings, whichever is most current, divided by the end of period reported count of common shares outstanding used to calculate basic earnings per share.
Each financial metric will create a separate score so that every company will have three scores. These three scores are averaged together to create one composite score for a company. This composite score is used to rank the companies in the next step in order to determine the sub-universe of securities.
3. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements, with each requirement being applied independently to the initial universe from the other requirements in this step, as of the Security Selection Date:
• Exclude the lowest ranked 25% of securities from the initial universe determined by the average of the three financial rankings described in step 2.
• Exclude the 20% of the initial universe with the lowest trailing six month total return.
• Exclude securities which do not have a policy of regular periodic cash dividends (quarterly, semiannual or yearly), or have omitted the most recent regular periodic cash dividend.
• Exclude securities with a market capitalization less than $200 million. Market capitalization is determined by the closing price as of the Security Selection Date.
• Exclude securities with a liquidity of less than $0.6 million. Liquidity is determined by the median trading volume in U.S. dollars looking back 90 days from the Security Selection Date (i.e., trading volume each day in shares multiplied by the closing price for the day as provided by FactSet Research Systems, Inc.).
• Exclude business development companies as identified by Bloomberg Industry Classification System sub-industry.
• Exclude mortgage real estate investment Trusts, as identified by GICS sub-industry.
• Exclude securities that have a pending cash or stock merger and acquisition or bankruptcy which will lead to delisting the security. Such events will be determined by reviewing the announced merger and acquisition data from Bloomberg.
• Exclude securities of the largest 500 companies of the initial universe by market capitalization (per FactSet).
4. Selection: Select from the sub-universe the 50 top dividend yielding securities (with higher rank given to larger market capitalization when yields are equal) and equally weight these securities as of the Security Selection Date. Selected securities must adhere to following portfolio limits as of the Security Selection Date:
• Maximum 20% weight in any GICS sector.
• Maximum 10% weight in any GICS industry.
• Minimum 80% in U.S. incorporated companies.
Once an investment limitation has been reached, additional securities of the type that would violate the limitation will not be included in the Trust and the next highest yielding security will be used.
Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date.
INDEX DEFINITION: The Russell 3000® Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable equity market. The Russell 2500 Index is composed of the smallest 2500 securities in the Russell 3000 Index. It is constructed to provide a comprehensive and unbiased barometer for the small to mid-cap segment of the U.S. equity universe. The Indexes are unmanaged and it is not possible to invest directly in the Indexes.
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.
• 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 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.
• The Trust invests significantly in the consumer products sector. As a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.
• The Trust invests in 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.
• 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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