Guggenheim Launches Blue Chip Dividend Portfolio
In constructing the Blue Chip Dividend Portfolio, Guggenheim analysts conduct fundamental analysis to identify dividend-paying companies with quality metrics such as profitability and profit growth, revenue growth, return on equity and share price stability. As a way of further identifying value-enhancing opportunities, special scrutiny is also paid to recent company news that might impact near-term operating results, but is not yet embodied in financial filings or the stock price. The Blue Chip Dividend Portfolio offers investors the potential for capital appreciation and income.
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 the health 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.
The Blue Chip Dividend Portfolio, Series 1 is a Unit Investment Trust.
RISK CONSIDERATIONS: As 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: • Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices, which could negatively impact the value of the Trust. Additionally, event such war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may adversely affect the economy, various markets and issuers. Recently, the outbreak of a novel and highly contagious form of coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant volatility in certain markets. Many governments and businesses have instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The potential impacts 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 trust and the Trust’s ability to achieve its investment objectives. • Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. • The Trust invests in “growth” stocks. Securities of growth companies may be more volatile than other stocks. If the perception of a company’s growth potential is not realized, the securities purchased may not perform as expected, reducing the Trust’s return. Because different types of stocks tend to shift in and out of favor depending on market and economic conditions, “growth” stocks may perform differently from the market as a whole and other types of securities. • The Trust is concentrated in the information technology sector. As a result, the factors that impact the information technology sector will likely have a greater effect on this Trust than on a more broadly diversified trust. Companies involved in this sector must contend with rapid changes in technology, intense competition, government regulation and the rapid obsolescence of products and services. Furthermore, sector predictions may not materialize and the companies selected for the Trust may not represent the entire sector and may not participate in the overall sector growth. • The Trust invests significantly in the consumer products sector. The factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified trust. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector. • The Trust may be susceptible to potential risks through breaches in cybersecurity. • Inflation may lead to a decrease in the value of assets or income from investments. 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 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.
Guggenheim Funds Distributors, LLC.
©2020 Guggenheim Partners, LLC. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC (“Guggenheim”): 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, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.