The Quality Dividend Strategy Portfolio, Series 19 ("Trust") seeks to provide total return primarily through capital appreciation and dividend income.
Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
This information does not constitute an offer to sell or a solicitation of any offer to buy: nor shall there be any sale of these securities in any state where the offer, solicitation, or sale is not permitted.
Principal Investment Strategy
Under normal circumstances, the Trust will invest at least 80% of the value of its assets in dividend-paying common stocks of quality companies. The Sponsor believes that quality companies are companies that have demonstrated high returns on assets, profitability, dividend consistency and growth.
The Trust utilizes three different quantitative strategies to determine the constituents of the final portfolio. The portfolio is a blend of securities selected from the following strategies: • Guggenheim US High Dividend Strategy (25 securities, 50% of the portfolio) • Guggenheim US SMID High Dividend Strategy (50 securities, 25% of the portfolio) • Guggenheim International Dividend Strategy (30 securities, 25% of the portfolio) |
Selection CriteriaIn constructing the Trust’s portfolio, 105 securities were selected using the three fundamentally based quantitative strategies listed below. Guggenheim US High Dividend Strategy: Twenty-five securities were selected six business days prior to the initial date of deposit (the “Security Selection Date”) using the Security Selection Rules outlined below. Security Selection Rules: In constructing the Trust’s portfolio, 25 securities were selected based on the following fundamentally based quantitative criteria: 1. Initial Universe: Start with an initial universe of all securities in the Russell 3000® Index as of the Security Selection Date. 2. Rank on Fundamentals: Rank every company identified in the initial universe against other companies in the same sector/group, along each of the following reported financial metrics. For this strategy, the 10 sector/groups are defined by Global Industry Classification Standard (GICS) by combining the financial and real estate sectors as one sector because they were one sector prior to September 1, 2016. Each ranking is determined as of the Security Selection Date using the most recently reported information and uses a scale of 1 through 10 (1 representing the highest scoring 10% in the sector/group and 10 representing the lowest scoring 10% in the sector/group):
Each financial metric will create a separate score so that every company will have three scores. These three scores are averaged together to create one composite score for a company. This composite score is used to rank the companies in the next step in order to determine the sub-universe of securities. 3. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements, with each requirement being applied independently to the initial universe from the other requirements in this step, as of the Security Selection Date:
4. Selection: Select from the sub-universe the twenty-five top dividend yielding securities (with higher rank given to larger market capitalization when yields are equal) and equally weight these securities as of the Security Selection Date so that each security will constitute 2% of the Trust’s final portfolio. Selected securities must adhere to following strategy limits as of the Security Selection Date:
Guggenheim US SMID High Dividend Strategy: Security Selection Rules: In constructing the Trust’s portfolio, 50 securities were selected based on the following fundamentally based quantitative criteria: 1. Initial Universe: Start with an initial universe of all securities in the Russell 3000® Index as of the Security Selection Date. 2. Rank on Fundamentals: Rank every company identified in the initial universe against other companies in the same sector/group, along each of the following reported financial metrics. For this strategy, the 10 sector/groups are defined by Global Industry Classification Standard (GICS) by combining the financial and real estate sectors as one sector because they were one sector prior to September 1, 2016. Each ranking is determined as of the Security Selection Date using the most recently reported information and uses a scale of 1 through 10 (1 representing the highest scoring 10% in the sector/group and 10 representing the lowest scoring 10% in the sector/group):
Each financial metric will create a separate score so that every company will have three scores. These three scores are averaged together to create one composite score for a company. This composite score is used to rank the companies in the next step in order to determine the sub-universe of securities. 3. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements, with each requirement being applied independently to the initial universe from the other requirements in this step, as of the Security Selection Date:
4. Selection: Select from the sub-universe the fifty top dividend yielding securities (with higher rank given to larger market capitalization when yields are equal) and equally weight these securities as of the Security Selection Date so that each security will constitute 0.5% of the Trust’s final portfolio. Selected securities must adhere to following strategy limits as of the Security Selection Date:-
Guggenheim International Dividend Strategy Thirty securities were selected on the Security Selection Date using the Security Selection Rules and the Portfolio Diversification & Concentration Rules outlined below. Security Selection Rules: In constructing the Trust’s portfolio, 30 securities were selected based on the following fundamentally based quantitative criteria as of the Security Selection Date. Except as set forth herein, the investment strategy utilizes information provided by Factset. 1. Start with an initial universe of securities that consists exclusively of all non-U.S. companies as categorized by Russell with equity securities listed on a U.S. exchange, excluding OTC traded securities. 2. Reduce the initial universe of securities to a sub-universe that consists exclusively of all securities that meet all of the following requirements:
3. Dividend Yield Rank: Select from the sub-universe above the 30 securities, as of the Security Selection Date, with the highest arithmetic average of the three trailing yearly actual dividend yields. The three trailing yearly periods are defined as the full year of time that each end on the same month and day as the Security Selection Date for the current year, last year, and two years ago. Each yearly period’s actual dividend yield is measured as all dividends whose exdividend date fell within the yearly period, divided by the latest closing security price before the begin date of such yearly period. For example, if the Security Selection Date is March 12, 2012, then the prior yearly period includes March 13, 2011 to March 12, 2012, and the starting security price for this period is the last closing price of the security before the begin date, which was March 11, 2011 since the 13th was a Sunday. Securities are eligible for selection if their actual dividend yield exceeded the median actual dividend yield for all securities in the sub-universe in each of the three prior years. Median dividend yield is defined as the specific dividend yield that separates the higher half of the annual dividend yields of the sub-universe of securities from the lower half of the annual dividend yields of the sub-universe of securities. The 30 securities are subject to the Portfolio Diversification & Concentration Rules below. Strategy Diversification & Concentration Rules: The securities selected by this strategy will consist of 30 securities that are equally weighted as of the Security Selection Date so that each security will constitute 0.83% of the Trust’s final portfolio. These 30 securities will be selected using the Security Selection Rules outlined above and must also satisfy the Portfolio Diversification & Concentration Rules below: 1. Sector Diversification: The securities selected by this strategy must consist of securities from a minimum of six of the ten Global Industry Classification Standards (“GICS”) sectors/groups for this strategy (which combines the financial and real estate sectors as one sector, as they were one sector prior to September 1, 2016), with no more than 25% of the strategy’s portfolio in any single GICS sector/group as of the Security Selection Date. 2. Geographical Diversification: The securities selected by this strategy must consist of securities from companies in at least 10 different countries (as categorized by Russell) with no more than 20% of the strategy’s portfolio from any single country as of the Security Selection Date. If the initial strategy portfolio violates either diversification rule, then the lowest ranked security (using the Dividend Yield Rank) that violates either rule is replaced by the next highest ranked security that does not violate a diversification rule. This is continued until the diversification rules are satisfied. Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date. |
Risks and Other ConsiderationsAs 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:
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information. |
Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.
Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.
Investing involves risk, including the possible loss of principal.
Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Japan Limited, and GS GAMMA Advisors, LLC. Securities offered through Guggenheim Funds Distributors, LLC.
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