OVLC

Guggenheim U.S. Large Cap Optimized Volatility ETF

 

Investment Objective

Guggenheim U.S. Large Cap Optimized Volatility ETF (OVLC) seeks investment results that correspond generally to the performance, before the fund’s fees and expenses, of the Guggenheim U.S. Large Cap Optimized Volatility Index.

Highlights & Applications

  • U.S. Large Cap Exposure—The index’s starting universe is the S&P 500® Index.
  • Dynamic Volatility Strategy—The index methodology is designed to optimize exposure to equity volatility based upon the current market conditions.
  • Attractive Reward to Risk Potential—The index seeks lower volatility in typical market conditions while attempting to obtain higher market returns when reward-to-risk is estimated to be higher¹.

¹ Please see the fund’s prospectus for additional information on the index methodology.

Top Fund Sectors

as of 9/30/16

SECTOR WEIGHTING
Consumer Staples 16.77 %
Health Care 14.34 %
Utilities 12.98 %
Information Technology 11.01 %
Consumer Discretionary 10.28 %
Financials 8.08 %
Industrials 6.17 %
Telecommunication Services 4.89 %
Energy 4.81 %
Materials 2.29 %


All data is provided by Guggenheim Funds Distributors, Inc. or FactSet. 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 OVLC
Exchange NYSE Arca
NAV Symbol (IIV) OVLCIV
CUSIP 18385P804
Fund Inception Date 5/10/16
Distribution Schedule (if any) Annually
Gross Expense Ratio 0.30 %
Net Expense Ratio 0.30 %
Fiscal Year-End 8/31
Investment Adviser Guggenheim Funds Investment Advisors, LLC
Distributor Guggenheim Funds Distributors, LLC
Guggenheim U.S. Large Cap Optimized Volatility IndexGLCOV
Index Provider Accretive Asset Management LLC
Volume 0
Shares Outstanding 100,000
Total Managed Assets $2,592,944

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  $25.93
Change $0.06
52-Week High $26.89
52-Week Low $24.60

Market Close

as of 12/1/16 Price History
  Market Price 
Close  $26.15
Change $0.00
52-Week High $26.77
52-Week Low $24.61
Bid/Ask Midpoint  $25.89
Premium / Discount  0.08%
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

Guggenheim U.S. Large Cap Optimized Volatility Index is designed to deliver exposure to equity securities of large-capitalization U.S. issuers and respond to changes in market conditions by attempting to obtain higher returns when the “reward to risk” (as measured by the Index methodology) is high, while minimizing volatility during other market conditions. Index constituents must be constituents of the S&P 500® Index, the leading benchmark index for U.S. large capitalization stocks.

Fund Characteristics

as of 9/30/16

Number of Securities97
Average Market Capitalization $53.8 Bil
Price/Earnings (P/E) 20.0 x
Price/Book (P/B) 2.8 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.

Current Distribution

There has been no initial distribution yet, therefore there is no data to display.

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 is designed to deliver exposure to equity securities of large capitalization U.S. issuers and respond to changes in market conditions by attempting to obtain higher returns when the “reward to risk” (as measured by the Index methodology) is high, while minimizing volatility during other market conditions. Index constituents must be constituents of the S&P 500® Index, the leading benchmark index for U.S. large capitalization stocks. The Index is rebalanced quarterly and the Index generally consists of 120 securities on each quarterly rebalancing date. Securities are only eligible for inclusion in the Index if they have been a part of the S&P 500® Index for a minimum period of six months prior to a quarterly rebalancing date. The Index was developed by Accretive.

INDEX CONSTRUCTION

  • Parent Index. Eligible securities must be components of the S&P 500® Index.
  • Index Optimization. An optimizer is employed to select a portfolio which maximizes the ratio between the reward to risk and volatility of the Index.
  • Target Weights. At the time of each rebalance, the weight of any one security is limited to that security’s representation in the S&P 500® Index, plus or minus 1%. The weight of any one sector is limited to that sector's weight in the S&P 500® Index, plus or minus 10%. The weight of a single security in the Index is capped at 0.5% or 10 times the security’s weight in the S&P 500® Index (whichever is greater). In all cases, the maximum weight of any one security will be 3% of the Index at the time of each rebalance.
  • Rebalancing. The Index is rebalanced quarterly on the third Friday of the last month of each quarter.

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 U.S. Large Cap Optimized Volatility 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 may also not be able to achieve its target daily volatility level and the fund may experience greater or lower than expected volatility due to market, sector or other factors. • 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. • 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. • 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. • 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.

Guggenheim U.S. Large Cap Optimized Volatility Index is a trademark of Accretive Asset Management LLC. Accretive Asset Management, LLC is an affiliate of Guggenheim Investments.

 

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.

Guggenheim

Subscribe to Perspectives



©2016 Guggenheim Investments. All Rights Reserved.

Research our firm with FINRA Broker Check.

• Not FDIC Insured • No Bank Guarantee • May Lose Value