NFO

Guggenheim Insider Sentiment ETF
Effective October 24, 2016, Guggenheim Insider Sentiment ETF (NFO) changed its benchmark index to the Guggenheim Nasdaq US Insider Sentiment Index from the Sabrient Insider Sentiment Index. The ETF ticker and name did not change. Read Frequently Asked Questions (FAQs) for more information.

 

Investment Objective

Guggenheim Insider Sentiment ETF (NFO) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the Nasdaq US Insider Sentiment Index.

Highlights & Applications

  • Corporate Insider Insights. Seeks to provide exposure to companies with a high degree of corporate insider buying.
  • Multi-Factor Approach. Adds momentum and volatility to an insider buying screen to identify companies with attractive share price characteristics.
  • Equal Weighted. Provides equal weight exposure to all stocks in the index, which may result in a more balanced and diversified portfolio.

Top Fund Holdings

as of 12/9/16 View All Holdings
XPO LOGISTICS INC 1.37%
CLARCOR INC 1.33%
FMC CORP 1.20%
FLOWSERVE CORP 1.16%
HARRIS CORP 1.13%
HUNTINGTON INGALLS INDUSTRIE 1.13%
WPX ENERGY INC 1.13%
CHIMERA INVESTMENT CORP 1.13%
ASPEN TECHNOLOGY INC 1.12%
CHEVRON CORP 1.11%

Top Fund Sectors

as of 9/30/16

SECTOR WEIGHTING
Consumer Discretionary 19.28 %
Information Technology 15.01 %
Industrials 13.94 %
Financials 12.95 %
Materials 9.61 %
Health Care 8.12 %
Utilities 5.96 %
Consumer Staples 3.87 %
Energy 3.09 %


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.

 

Fund Profile

as of 12/9/16
Symbol NFO
Exchange NYSE Arca
NAV Symbol (IIV) NFA
CUSIP 18383M209
Fund Inception Date 9/21/06
Distribution Schedule (if any) Annually
Gross Expense Ratio 0.76 %
Net Expense Ratio 0.65 %
Fiscal Year-End 8/31
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC
Nasdaq US Insider Sentiment IndexNQBUY
Index Provider Nasdaq Global Indexes
Volume 6,031
Shares Outstanding 1,400,800
Total Managed Assets $70,435,999

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.

Net Asset Value

as of 12/9/16 Price History
NAV  $50.28
Change $0.05
52-Week High $50.89
52-Week Low $39.68

Market Close

as of 12/8/16 Price History
  Market Price 
Close  $50.22
Change $0.15
52-Week High $50.83
52-Week Low $39.72
Bid/Ask Midpoint  $50.23
Premium / Discount  -0.01%
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.

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 listing exchange, usually 4:00 p.m. Eastern time, each day the listing exchange 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.

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

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.

Index Description

The Nasdaq US Insider Sentiment Index is designed to provide exposure to U.S. companies within the Nasdaq US Large Mid Cap Index (which consists of approximately 900 stocks) which exhibit high degrees of corporate insider buying. The universe of securities is screened by a series of three factors—increase in average shares held by corporate insiders, and a combination of positive share price momentum and lower share price volatility. The 100 highest-ranking securities, subject to industry weight constraints, are selected for inclusion in the Index and an equal weighting methodology is applied.

Fund Characteristics

as of 9/30/16

Number of Securities101
Average Market Capitalization $17.6 Bil
Price/Earnings (P/E) 19.1 x
Price/Book (P/B) 2.4 x
Beta 1.07
Alpha -4.77
Standard Deviation (Fund / Sabrient Insider Index) 12.61/0

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 $0.717200

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 Index Provider selects securities for the Index using a rules-based selection criteria designed to increase the Index’s exposure, relative to the starting universe, to securities that reflect favorable corporate insider buying trends by considering the following factors:

  • Insider Buying Trends. Increases in average shares of a company held by corporate insiders are evaluated by calculating the average shares held by corporate insiders over a trailing 12-month period and comparing that average to the average number of shares held by corporate insiders over a 13 to 24-month period.
  • Momentum. Momentum is calculated based on each company's one-month, three-month, six-month, nine-month and twelve-month returns.
  • Volatility. Volatility reflects the degree of fluctuation in a company’s share price and it is calculated based on a company's trailing one-year share price fluctuation.

Eligible securities are ranked based on the above three factors and the top 100 ranking securities are selected for inclusion in the Index. The Index is also subject to industry specific constraints. The Index is evaluated and rebalanced semi-annually. As of September 30, 2016, the Index was comprised of approximately 100 securities.

RISKS AND OTHER CONSIDERATIONS

Guggenheim Defensive Equity ETF is subject to risks and may not be suitable for all investors. • Investing involves risk and special consideration, including the possible loss of principal. • There are no assurances that the fund will achieve its investment objective and/or strategy. • Investments in large capitalization stocks may underperform other segments of the equity market or the equity market as a whole. • The Fund seeks to track quantitative strategy index, meaning that the Fund invests in securities comprising an index created by a proprietary quantitative model. The Fund’s return depends on the effectiveness of the model in screening securities for inclusion in the index. The factors used the model’s quantitative analysis and the weight placed on these factors may not accurately predict a security’s value. As a result, the Fund may have a lower return than if the Fund tracked an index based on a fundamental investment strategy, or an index that did not incorporate quantitative analysis. • The fund is not actively “managed” which means the fund would not necessarily sell a security because the security’s issuer was in financial trouble unless that security is removed from the Index. In addition, the fund will not otherwise take defensive positions in declining markets unless such positions are reflected in the Index. • Non-Correlation risk refers to the risk that the Advisor may not be able to cause the fund’s performance to match or correlate to that of the fund’s Underlying Index, either on a daily or aggregate basis. • Shares may trade below their net asset value (“NAV”). The NAV of shares will fluctuate with changes in the market value of the fund’s holdings. In addition, although the fund’s shares are currently listed on NYSE Arca, Inc. (the “Exchange”), there can be no assurance that an active trading market for shares will develop or be maintained. • Most investors will incur customary brokerage commissions when buying or selling shares of an ETF. • 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 a broader range of industries.• Please read the prospectus for more detailed information regarding these and other risks.

Nasdaq®, Nasdaq Insider Sentiment Index, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Guggenheim. Guggenheim Insider Sentiment ETF has not been passed on by the Corporations as to their legality or suitability. Guggenheim Insider Sentiment ETF is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE GUGGENHEIM INSIDER SENTIMENT ETF.

 

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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