Guggenheim: Navigating Uncertainty
In today’s uncertain market, a more defensively positioned portfolio may enable investors to better weather periods of market volatility by seeking to lessen the impact of a drawdown and increase the potential for more attractive long-term returns. Two market areas that may be attractive include quality-focused companies, as well as defensive growth sectors.
During uncertain times, high quality stocks may be an advantageous way to navigate volatility. High quality companies, generally defined as those with strong balance sheets, profitability, dependable earnings, and the overall size to help withstand market downturns, offer the potential to demonstrate performance leadership in periods of heightened market volatility. Explore these five quality-focused Guggenheim UITs:
- Blue Chip Growth Portfolio
- Dividend Strength Portfolio
- US Capital Strength Portfolio
- US Low Volatility Portfolio
- S&P Dividend Aristocrats Select 25 Strategy Portfolio
Defensive Growth Sectors
Health care and technology are two sectors that have historically delivered better than average growth vs. the broad market.1 Guggenheim believes that both these sectors are positioned to lead in this uncertain time and should continue to lead as we emerge from this market event. Explore Guggenheim’s defensive growth sector UITs:
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Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal. Securities of small-capitalization and mid–capitalization companies customarily involve more investment risk than large-capitalization companies. Small-capitalization and mid–capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments. Investing in sector funds is more volatile than investing in broadly diversified funds, as there is a greater risk due to the concentration of the fund’s holdings in issuers of the same or similar offerings. General risks of companies in thehealth care sector include extensive competition, generic drug sales, the loss of patent protection, product liability litigation and increasedgovernment regulation. Companies involved in the technology sector must contend with rapid changes in technology, intense competition,government regulation and the rapid obsolescence of products and services. The potential impacts of the COVID-19 outbreak are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses. Any adverse event could materially and negatively impact the value and performance of fund and the fund’s ability to achieve its investment objectives.
- Source: Bloomberg 3.31.2020. Both the S&P 500 Health Care Index and S&P Information Technology Index with respective average annual total returns of 10.09% and 10.85% outperformed the S&P 500® Index’s average annual total return of 8.09% for the period 7.31.1996–3.31.2020, which represents the since inception numbers for the sector indexes.
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 thepurchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.
. This material is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax, and/or legal professional regarding your specific situation.
Read the trust’s prospectus carefully before investing. It contains the trust’s investment objectives, risks, charges, expenses, and other information, which should be considered carefully before investing. Obtain a prospectus at GuggenheimInvestments.com.
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