Compass Undervalued Top Picks Portfolio Series 2

The Trust seeks to provide a portfolio of approximately 43 securities that the Sponsor believes are undervalued by the market and have the potential for increased profitability. However, there can be no assurance that any security held by the Trust will meet the Trust objective.

The Trust may hold U.S.-listed common stocks of companies of all market capitalizations. The U.S.-listed common stocks held by the Trust may include the common stocks of U.S. and non- U.S. companies. As a result of the strategy, the Trust is concentrated in the financial sector and invests significantly in the information technology and health care sectors.

The Trust’s portfolio is constructed and the securities are selected approximately sixteen business days prior to the initial date of deposit (the “Inception Date”) using the methodology described below.

In constructing the Trust portfolio, approximately 43 securities will be selected based on the following fundamentally-based quantitative criteria:

• Begin with all companies listed in the Russell 3000 Index.

• Exclude the smallest 1000 companies as measured by market capitalization.

• 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.

• Rank companies according to Guggenheim’s Compass Valuation Model, which is a proprietary process that evaluates companies based on a company’s profitability trend relative to its market valuation trend.

• Select the top approximately 43 companies as identified by the Compass Valuation Model, subject to a sector limitation of +/- 15% of the sector weightings of the Russell 3000 Index.

• Equally weight each selected security within the portfolio as of the security selection date. Please note that due to the fluctuating nature of security prices, the weighting of an individual security in the Trust portfolio may change after the security selection date.

Compass Valuation Model

The Compass Valuation Model is a proprietary process that evaluates companies based on a company’s profitability trend relative to its trend in market valuation. The Compass Valuation Model generates a measure derived from many discrete factors that are used to determine the trajectory of a company’s return on invest capital (ROIC) relative to the company’s market valuation trend. Stocks that demonstrate a strong, relatively uninterrupted improvement in their ROIC, but remain undervalued by the marketplace, result in higher model scores and are selected for the portfolio.

INDEX DEFINITION: The Russell 3000 Index is composed of the 3,000 largest U.S. companies ranked by total market capitalization, representing approximately 98% of the U.S. investable equity market.

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.

• The Trust is concentrated in the financial sector. As a result, the factors that impact the financial sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Some of the risks associated with the financial sector are listed below. Companies in the financial sector include banks, insurance companies and investment firms. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments. Financial sector companies are especially subject to the adverse effects of economic recession, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business. Negative developments initially relating to the subprime mortgage market and subsequently spreading to other parts of the economy, have adversely affected credit and capital markets worldwide and significantly impacted financial sector companies.

• 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. Some of the risks associated with the information technology sector are listed below. 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 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. Some of the risks associated with the health care sector are listed below. 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 includes real estate investment Trusts (“REITs”). REITs may concentrate their investments in specific geographic areas or in specific property types, such as, hotels, shopping malls, residential complexes and office buildings. The value of the REITs and other real estate securities and the ability of such securities to distribute income may be adversely affected by several factors, including: rising interest rates; changes in the global and local economic climate and real estate conditions; perceptions of prospective tenants of the safety, convenience and attractiveness of the properties; the ability of the owner to provide adequate management, maintenance and insurance; the cost of complying with the Americans with Disabilities Act; increased competition from new properties; the impact of present or future environmental legislation and compliance with environmental laws; changes in real estate taxes and other operating expenses; adverse changes in governmental rules and fiscal policies; adverse changes in zoning laws; declines in the value of real estate; the downturn in the subprime mortgage lending market and the real estate market in the United States; and other factors beyond the control of the issuer of the security.

• 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.

• 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.