On May 20, 2016, CSD changed its name and benchmark index.

CSD

Guggenheim S&P Spin-Off ETF

 

Investment Objectives

Guggenheim S&P Spin-Off ETF (CSD) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the S&P U.S. Spin-Off Index. CSD offers exposure to U.S. domiciled companies that have been spun-off from a parent company within the last four years and have a float-adjusted market capitalization of at least $1 billion.

Highlights & Applications

  • Access pure exposure to the spin-off sector.
  • Positioned to benefit from potential stock price appreciation that may accompany a spin-off.
  • Diversified exposure across a variety of industries.

Top Fund Holdings

as of 7/25/16 View All Holdings
HEWLETT PACKARD ENTERPRIS 7.75%
SYNCHRONY FINANCIAL 7.51%
ZOETIS INC 7.40%
PAYPAL HOLDINGS INC 7.38%
ABBVIE INC 7.32%
KRAFT HEINZ CO/THE 7.18%
FORTIVE CORP 4.76%
WHITEWAVE FOODS CO 3.18%
CDK GLOBAL INC 2.92%
MALLINCKRODT PLC 2.37%

Top Fund Sectors

as of 3/31/16

SECTOR WEIGHTING
Consumer Discretionary 25.83 %
Financials 24.07 %
Information Technology 19.17 %
Industrials 11.83 %
Health Care 10.65 %
Utilities 5.93 %
Materials 0.67 %
Energy 0.66 %
Telecommunication Services 0.60 %


All data is provided by Guggenheim Funds Distributors, LLC, Morningstar or Fact Set. Data is subject to change on a daily basis and represents a percentage of the Fund’s holdings, excluding cash. The securities mentioned are provided for informational purposes only and should not be deemed as a recommendation to buy or sell.

Prior to May 20, 2016, the fund was named Guggenheim SpinOff ETF and sought to correspond generally to the performance, before the fund’s fees and expenses, of the Beacon Spin-Off Index.

Fund Profile

Symbol CSD
Exchange NYSE Arca
NAV Symbol (IIV) CSDIV
CUSIP 18383M605
Fund Inception Date 12/15/06
Distribution Schedule (if any) Annually
Gross Expense Ratio 0.72 %
Net Expense Ratio 0.65 %
Fiscal Year-End 8/31
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC
S&P U.S. Spin-Off IndexSPUSSOUP
Index Provider S&P Dow Jones Indices LLC

The Advisor has contractually agreed to waive fees and expenses through December 31, 2018 to limit the ordinary operating expenses of the Fund. The Fund may have net expenses greater than the expense cap as a result of any acquired fund fees and expenses or other expenses that are excluded from the calculation.

The gross expense ratio reflects the fund’s actual total annual operating expense ratio, gross of any fee waivers or expense reimbursements as of its most recent prospectus.

Index Description

The S&P U.S Spin-Off Index is designed to measure the performance of U.S. companies that have been spun-off from a parent company within the last four years and have a float-adjusted market capitalization of at least $1 billion.

Fund Statistics

as of 7/25/16 Price History
  MARKET PRICE NAV
Close $41.78 $41.85
Change ($0.12) ($0.08)
52-Week High $45.53 $45.53
52-Week Low $32.48 $32.47
Bid/Ask Premium (Discount) -0.07 %
Volume 94,617
Shares Outstanding 5,300,000
Total Managed Assets $221,791,834

Premium (Discount) Historical Download1

1Shareholders may pay more than net asset value when they buy shares of an ETF and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices.

In general, market price represents what the fund is trading at.

NAV is the price per share at which each Fund issues and redeems shares. The net asset value per share for each Fund is determined once daily as of the close of the NYSE, usually 4:00 p.m. Eastern time, each day the NYSE is open for trading. NAV per share is determined by dividing the value of the Fund’s portfolio securities, cash and other assets (including accrued interest), less all liabilities (including accrued expenses), by the total number of shares outstanding.

The closing price is the price of the last reported trade on any exchange on which the Fund trades before the market closes, usually at 4 pm Eastern time.

The bid/ask midpoint is the midpoint of the highest bid and lowest offer on the listing exchange at the time that the NAV is calculated, usually 4 pm Eastern time.

The premium/discount is the amount the Fund is trading higher (“premium”) or lower (“discount”) to its NAV, expressed as a percentage of its bid/ask midpoint to its NAV. A positive number indicates it’s trading at premium and a negative number indicates it’s trading at a discount.

Fund Characteristics

as of 3/31/16

Number of Securities42
Average Market Capitalization $41.0 Bil
Price/Earnings (P/E) 18.0 x
Price/Book (P/B) 1.7 x
Beta 1.28
Alpha -9.53
Standard Deviation (Fund / S&P 500 Index) 16.56/0

P/E ratio is a harmonic weighted average and is equal to a security’s market capitalization divided by it after-tax earnings over the most recent 12-month period.

P/B ratio is a harmonic weighted average and is equal to a security’s market capitalization divided by its book value.

Alpha is a statistical measurement that depicts the performance difference between a fund’s return and an underlying performance benchmark, given a fund’s level of volatility, measured by beta. The benchmark will always reflect an alpha of 0.00%. A positive alpha indicates a fund has performed better than its beta would predict in the stated period.

Beta is the measure of a fund’s sensitivity to an index. By definition, the beta of an index is 1.00. Any fund with a higher beta is more volatile than the index. Likewise, any portfolio with a lower beta will be less volatile than the index in the stated period.

Standard deviation is a measure of historical volatility that indicates the degree to which an investment’s returns fluctuate around its average return. Generally, a higher standard deviation indicates a more risky investment.

Average market capitalization is the geometric mean of the market capitalization s for all securities in a fund’s portfolio.

Weighted average coupon is calculated by weighting each bond’s coupon by its relative size in the portfolio.

Weighted average bond price is a weighted average of individual bond prices.

Weighted average option-adjusted duration is a weighted average which measures the sensitivity of the price (the value of principal), incorporating the expected duration-shortening effect of an embedded call provision, of a fixed-income investment to a change in interest rates. The larger the duration number, the greater the interest-rate risk for bond prices.

Average maturity is the length of time until the principal amount of a bond must be repaid.

Average effective duration measures the sensitivity of the price (value of principal) of a fixed income investment to a change in interest rates. The larger the duration number, the greater the interest rate risk for bond prices.

Current Distribution

View Distribution History
Ex-Date 12/24/15
Record Date 12/29/15
Payable Date 12/31/15
Distribution per Share $1.001600

The extent the Current Distribution is comprised of something other than Income, such as Return of Capital, please refer to the applicable Rule 19a-1 Notice found on the Fund's website under the Literature section. If the Current Distribution is comprised solely from Income, a Rule 19a-1 Notice will not be produced and posted.

Past performance is not a guarantee of future results.

INDEX METHODOLOGY

The S&P U.S. Spin-Off Index is based on the S&P U.S. BMI. The index contains all spin-offs added to the S&P U.S. BMI that have a float-adjusted market capitalization of at least $1 billion. The index also contains split-offs added to, or already included in, the S&P U.S. BMI that have float-adjusted market capitalizations of at least $1 billion. Additions are made to the index on a monthly basis after the close of the third Friday of each month. Any eligible spin-offs occurring at least seven business days prior to the rebalancing date are included in the index at the monthly rebalancing. Constituents are included in the index for a maximum of 48 months. If a constituent has been in the index for 48 months, it is removed at the subsequent monthly rebalancing. In addition, any consituents removed from the S&P U.S. BMI are removed from the S&P U.S. Spin-Off Index simultaneously. If the deletion of a constituent at the monthly rebalancing would result in a constituent count of less than 20, the deletion will be delayed until the next rebalancing period in which the resulting constituent count would be at least 20.

INDEX CONSTRUCTION

  1. Universe. All companies must be constituents of the S&P U.S. BMI that have been spun off from a parent company withing the last four years.
  2. Weighting. Each constituent in the index is weighted by float-adjusted market capitalization, subject to a 7.5% cap for any single stock. Companies with multiple share class lines in the index have their weights combined with the sum total subject to the 7/5% cap.
  3. Deletions. Constituents are included in the index for a maximum of 48 months. Any constituent removed from the S&P U.S. BMI is removed from the S&P U.S. Spin-Off Index simultaneously.
  4. Size. Companies must have a float-adjusted market capitalization of at least USD 1 billion.
  5. Rebalancing. The index is rebalanced monthly, after the close of the third Friday of each month.

RISKS AND OTHER CONSIDERATIONS

Investors should consider the following risk factors and special considerations associated with investing in the fund, which may cause you to lose money, including the entire principal amount that you invest.

Equity Risk: The value of the equity securities held by the fund will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the fund participate, or factors relating to specific companies in which the fund invests.

Foreign Investment Risk: The fund’s investments in non-U.S. issuers, although generally limited to ADRs, may involve unique risks compared to investing in securities of U.S. issuers, including less market liquidity, generally greater market volatility than U.S. securities and less complete financial information than for U.S. issuers.

Consumer Discretionary Sector Risk: The success of consumer product manufacturers and retailers is tied closely to the performance of the overall domestic and international economy, interest rates, competitive and consumer confidence. Success depends heavily on disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products in the marketplace.

Computer/Technology Sector Risk: Competitive pressures may have a significant effect on the financial condition of companies in the computer/technology sector. Also, many of the products and services offered by computer and technology companies are subject to the risks of short product cycles and rapid obsolescence.

Small- and Medium-Sized Company Risk: Investing in securities of small and medium-sized companies involves greater risk than is customarily associated with investing in larger, more established companies.

Micro-Cap Company Risk: Micro-cap stocks involve substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), and their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations.

MLP Risk: Investments in securities of MLPs involve risks that differ from an investment in common stock. Holders of the units of MLPs have more limited control and limited rights to vote on matters affecting the partnership. There are also certain tax risks associated with an investment in units of MLPs.

Concentration Risk: If the Index concentrates in an industry or group of industries the fund’s investments will be concentrated accordingly. In such event, the value of the fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in abroader range of industries. In addition the fund is subject to Non-Correlation Risk, Replication Management Risk, Issuer- Specific Changes and Non-Diversified fund Risk.

 

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or contact us.

Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investment Advisors, LLC, ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisers to the referenced funds. Securities offered through Guggenheim Funds Distributors, LLC, an affiliate of Guggenheim, SI, GFIA and GPIM.

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