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Dow Jones Sustainable Growth Portfolio Series 2

Trust Resources
Prospectus
secondary

Investment Objective

The Dow Jones Sustainable Growth Portfolio, Series 2 ("Trust") seeks to maximize total return primarily through capital appreciation.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price N/A
Wrap Fee Price N/A
Liquidation Price $9.4480
Remaining Deferred Sales Charge $0.1350

CUSIPs

Monthly-Cash 40173U563
Monthly-Reinvest 40173U571
Monthly-Fee/Cash 40173U589
Monthly-Fee/Reinvest 40173U597

 

Deposit Information

Inception Date 2/16/2018
Non-Reoffered Date 5/16/2018
Mandatory Maturity Date 5/20/2019
NASDAQ Ticker Symbol CSUSBX
Trust Structure GRANTOR
Inception Unit Price $10.0000
Inception Liquidation Price $9.8650
Deferred Sales Charge Dates Jun 2018
Jul 2018
Aug 2018
Term 15 Months
Number of Holdings 49
Historical Annual Dividend Distribution $0.0156

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 76.07
Weighted Average Price/Book (P/B) Ratio 20.23
Weighted Average Market Cap (MM) $63,219.48

Market Cap & Style Breakdown

Value Growth Total
Large-Cap 2.97% 21.08% 24.05%
Mid-Cap 7.89% 64.40% 72.29%
Small-Cap -- 3.66% 3.66%
Total 10.86% 89.14% 100.00%

Asset Class

US Common Stock 100.00%
Total 100.00%

Market Cap Breakdown

Style Breakdown

Sector & Industry Breakdown

Health Care 25.43%
 Biotechnology 1.39%
 Health Care Equipment & Supplies 1.79%
 Health Care Providers & Services 10.39%
 Life Sciences Tools & Services 8.57%
 Pharmaceuticals 3.28%
Information Technology 23.55%
 Electronic Equipment Instruments & Components 4.18%
 IT Services 12.96%
 Software 4.42%
 Technology Hardware Storage & Peripherals 1.98%
Consumer Discretionary 23.00%
 Auto Components 2.34%
 Distributors 3.68%
 Diversified Consumer Services 3.72%
 Hotels Restaurants & Leisure 0.97%
 Household Durables 1.49%
 Multiline Retail 1.01%
 Specialty Retail 9.79%
Industrials 19.94%
 Aerospace & Defense 1.27%
 Building Products 5.08%
 Electrical Equipment 1.30%
 Machinery 6.82%
 Professional Services 3.82%
 Trading Companies & Distributors 1.64%
Materials 3.22%
 Containers & Packaging 3.22%
Consumer Staples 3.12%
 Beverages 2.08%
 Food Products 1.04%
Real Estate 1.75%
 Real Estate Management & Development 1.75%
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

The Trust invests substantially all of its assets in securities included in the Dow Jones Top Cap Growth Index that the Sponsor believes have the highest sustainable growth potential. The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of the Sponsor and Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio by utilizing GPIM’s proprietary process to select the top 50 stocks that the Sponsor believes have the highest sustainable growth potential. The Trust may invest in companies with small-, mid- and large-capitalizations. The Trust will include U.S.-listed common stocks, which may include the common stocks of U.S. and non-U.S. companies and may include the securities of issuers located in emerging market countries. The Trust may include the securities of real estate investment Trusts (“REITs”). As a result of the strategy, the Trust is concentrated in the consumer products sector and invests significantly in the health care sector and in the information technology sector.

Selection Criteria

The Trust’s portfolio is constructed and the securities are selected using the methodology described below.

In constructing the Trust portfolio, securities will be selected based on the following fundamentally-based quantitative criteria:

• Begin with all companies listed in the Dow Jones Top Cap Growth Index, which is a combination of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index and the Dow Jones U.S. Mid-Cap Growth Total Stock Market Index.

• Exclude companies with a price per share of less than $5.

• Exclude companies with a market value of less than $500 million.

• Exclude companies with a 90-day median daily traded value of less than $1 million.

• Concurrently filter the starting universe of securities by the following:

o Exclude 20% of the companies whose asset growth exceeds their sales growth by the highest percentage;

o Exclude 20% of the companies with the highest 1 year standard deviation of daily returns for the trailing year;

o Exclude 20% of the companies that have the lowest forward year earnings per share (EPS) growth estimates (analyst consensus); and

o Exclude 20% of the companies that have the lowest momentum as measured by 6 month total returns.

• Select the 100 companies with the highest Santa Monica Quantitative (SMQ) Alpha Score.

• Select the final portfolio by selecting the top 50 companies based on highest sustainable growth rate (return on equity multiplied by retained earnings) and weight the portfolio by sustainable growth rate, subject to a 5% cap for each individual security on the day the strategy generates the final portfolio, except for financial sector securities which are subject to a 4% cap. (A company’s weight in the portfolio is derived by dividing the sustainable growth rate of each company by the sum of all sustainable growth rates for the 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 the cap described above after the portfolio selection date. Portfolio sector weights will be constrained to +/- 10% of the benchmark weights as of the day of deposit.

Strategy Definitions

Asset growth: The one year growth of a company’s total assets calculated by finding the percent change of total assets from a company’s most recently reported total asset compared to that company’s total asset one year prior.

Retained earnings: The most recently reported last twelve month earnings per share minus the most recently reported last twelve month dividends per share, divided by most recently reported last twelve month earnings per share.

Return on equity: The most recently reported last twelve month net income before extraordinary items divided by the one-year average of total stockholders equity, multiplied by 100.

Santa Monica Quantitative (SMQ) Alpha Score: A proprietary value score that incorporates elements of forward looking growth and profitability to estimate future cash flows and value them relative to current market prices.

Sales growth: The one year growth of a company’s sales calculated by finding the percent change of quarterly sales from a company’s most recently reported last twelve month sales compared to that company’s last twelve month sales one year prior.

INDEX DEFINITIONS: The Dow Jones Top Cap Growth Index is a combination of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index and the Dow Jones U.S. Mid-Cap Growth Total Stock Market Index. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index is designed to measure the performance of large-cap U.S. equity securities that are classifi ed as “growth” based on multi-factor analysis. The Dow Jones U.S. Mid-Cap Growth Total Stock Market Index is designed to measure the performance of mid-cap U.S. equity securities that are classifi ed as “growth” based on multi-factor analysis. Indexes are unmanaged and it is not possible to invest directly in an index.

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 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.

• 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, including the use of the Santa Monica Quantitative (SMQ) Alpha Score, may not produce the intended results and there is no guarantee that the investment objective will be achieved.

• The Trust invests in “growth” stocks. Growth stocks are issued by companies which are expected to experience greater earnings growth rates relative to other companies in the same industry or the economy as a whole. Securities of growth companies may be more volatile than other stocks. If the perception of a company’s growth potential is not realized, the securities purchased may not perform as expected, reducing the Trust’s return. In addition, because different types of stocks tend to shift in and out of favor depending on market and economic conditions, “growth” stocks may perform differently from the market as a whole and other types of securities.

• The Trust is concentrated 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 significantly in the health care sector. As a result, the factors that impact the health care sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the health care sector include extensive competition, generic drug sales, the loss of patent protection, product liability litigation and increased government regulation.

• 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 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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