OPD

Guggenheim Large Cap Optimized Diversification ETF

 

Investment Objective

Guggenheim Large Cap Optimized Diversification ETF (OPD) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the Wilshire Large Cap Optimized Diversification Index.

Highlights & Applications

  • Performance Potential—Combining differentiated return streams from lowly-correlated stocks may provide the potential for attractive risk-adjusted returns.
  • Diversification¹—Seeks to replicate, before the fund’s fees and expenses, the performance of an index that is methodically constructed via a proprietary algorithm, individual stocks are added only up to the point that they contribute to diversification.
  • Risk Management—The fund seeks to manage risk by constraining at the stock and sector level relative to the parent index.
¹ Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

Top Fund Holdings

as of 12/2/16 View All Holdings
CSRA INC 1.35%
KOHLS CORP 1.33%
NETFLIX INC 1.33%
TARGA RESOURCES CORP 1.30%
HUMANA INC 1.28%
BEST BUY CO INC 1.28%
SIX FLAGS ENTERTAINMENT CORP 1.27%
ORBITAL ATK INC 1.23%
TARGET CORP 1.19%
REPUBLIC SERVICES INC 1.19%

Top Fund Sectors

as of 9/30/16

SECTOR WEIGHTING
Consumer Staples 23.91 %
Consumer Discretionary 18.46 %
Health Care 14.68 %
Information Technology 8.71 %
Real Estate 7.70 %
Utilities 6.43 %
Financials 6.19 %
Telecommunication Services 4.93 %
Energy 4.04 %
Industrials 2.39 %
Materials 1.33 %


All data is provided by Guggenheim Funds Distributors, Inc. or Morningstar. Data is subject to change on a daily basis and represents a percentage of the Fund’s holdings excluding cash, except where noted. 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 12/2/16
Symbol OPD
Exchange NYSE Arca
NAV Symbol (IIV) OPDIV
CUSIP 18383M167
Fund Inception Date 4/19/16
Distribution Schedule (if any) Annually
Gross Expense Ratio 0.40 %
Net Expense Ratio 0.40 %
Fiscal Year-End 8/31
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC
Wilshire Large Cap Optimized Diversification InexWILCOD
Index Provider Wilshire
Volume 0
Shares Outstanding 50,000
Total Managed Assets $1,274,731

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 12/2/16 Price History
NAV  $25.49
Change $0.13
52-Week High $26.69
52-Week Low $24.31

Market Close

as of 12/2/16 Price History
  Market Price 
Close  $25.42
Change $0.00
52-Week High $26.39
52-Week Low $24.71
Bid/Ask Midpoint  $25.49
Premium / Discount  -0.02%
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 Wilshire Large Cap Optimized Diversification Index (“index”) is designed to provide optimized diversification to the U.S. large-cap equity market. Utilizing a proprietary algorithm, the index seeks to optimize diversification by selecting a subset of stocks, generally with higher stock specific risk (diversifiable risk), and weighting them so that each stock contributes approximately the same amount of correlation-weighted risk to the parent index. The index is constrained at the sector and stock level relative to the cap-weighted Wilshire Large Cap Index. This approach may provide the potential for attractive risk-adjusted returns.

Fund Characteristics

as of 9/30/16

Number of Securities102
Average Market Capitalization $122.6 Bil
Price/Earnings (P/E) 18.7 x
Price/Book (P/B) 2.5 x

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.

INDEX METHODOLOGY

To be included in the Wilshire Large Cap Optimized Diversification Index, an issue must:

• Be a constituent of the Wilshire US Large-Cap Index for more than six months
• Be selected using the proprietary correlation weighted diversification optimizer

INDEX CONSTRUCTION

Weighting

• The Index is weighted based on a process designed to optimize the diversification benefit of each security in the Index based on a correlation-weighted methodology.
• Individual security position sizes are constrained to a maximum of 1% of the Index.
• Sector exposures are constrained to between 0.5x to 2x, where the Wilshire US Large-Cap Index is the reference portfolio for the sector allocation based on Industry Classification Benchmark (“ICB”) methodology.

Changes to the composition of the Index and updates of component shares are based on the following rules:

Composition Changes

The composition of the Wilshire Large Cap Optimized Diversification Index is reviewed quarterly. Additions and deletions are made after the close of trading on the last day of the calendar quarter and are pre-announced by the second day prior to the implementation date.

• Additions include any constituent of the Wilshire US Large-Cap Index that is selected using the proprietary correlation-weighted diversication optimizer for inclusion as of the close of trading on the 10th business day of the last calendar quarter month.
• Deletions include any constituent of the Wilshire US Large-Cap Index that is not selected using the proprietary correlation-weighted diversication optimization for inclusion as of the close of trading on the 10th business day of the last calendar quarter month.
• During the calendar quarter, any issue that is delisted is removed as an Index constituent.
• Securities that are spun-off from existing consituents are added to the Index until the next rebalance date.

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.

Performance displayed represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Total returns reflect the reinvestment of all dividends. Current performance may be lower or higher than the performance data quoted. For up-to-date fund performance, including performance current to the most recent month-end, please visit the ETF performance page. ETFs are subject to third party transaction fees/commissions. Net asset value (NAV) is calculated by subtracting total liabilities from total assets, then dividing by the number of shares outstanding. Market close is the last price at which shares are traded. Fund shares may trade at, above or below NAV. For additional information, see the fund’s prospectus.

Performance results for periods under one year are short-term and may not provide an adequate basis for evaluating the performance potential of the fund over varying market conditions or economic cycles.

Guggenheim Large Cap Optimized Diversification 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 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. Non-Correlation risk may cause the fund’s performance to be less than you expect. • 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.

Fund data is subject to change on a daily basis.

Composition is subject to change. Information provided is for illustration purposes only and may not reflect current investments by the fund. Referenced companies are not affiliated with Guggenheim Investments and Guggenheim Investments does not sponsor, endorse, sell or promote the referenced companies.

Wilshire®, the Wilshire Indexes℠, Wilshire Large Cap Optimized Diversification Index℠ and Wilshire Large Cap Index℠ are service marks of Wilshire Associates Incorporated (“Wilshire”) and have been licensed for use by Guggenheim Funds Investment Advisors, LLC. All content of the Wilshire Indexes℠, Wilshire Large Cap Optimized Diversification Index℠ and Wilshire Large Cap Index℠ is ©2016 Wilshire Associates Incorporated, all rights reserved. The ETF is not sponsored, endorsed, sold or promoted by Wilshire, and Wilshire makes no representations or warranties with respect to the 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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