Guggenheim Funds Distributors, Inc. announced the launch of the
Guggenheim ABC High Dividend ETF (NYSE Arca: ABCS). The new
offering from Guggenheim will seek to replicate the BNY Mellon ABC
Index (the “Index”) by providing investors with exposure to
high-yielding mature companies from the commodity-rich countries of
Australia, Brazil and Canada.
“The global supply of commodity and natural resources is
expected to become further constrained such that it will be
unlikely to keep pace with global population growth,” explained
Scott Minerd, Chief Investment Officer, Guggenheim Partners.
“Australia, Brazil and Canada are uniquely positioned as a result
of vast commodity deposits. These global supply and demand dynamics
are likely to place upward pressure on natural resources and
commodity prices, thereby leading to attractive investment
opportunities.”
Mr. Minerd believes having access to higher-yielding companies
from commodity-rich Australia, Brazil and Canada offers investors a
high level of dividend income potential. During inflationary
periods in commodity-linked economies, many companies—not just
energy and materials producers—tend to flourish as overall profits
and employment rise with their country’s export sector.
“The introduction of Guggenheim ABC High Dividend ETF represents
another step in the growth of our comprehensive product range,”
commented Steve Baffico, Senior Managing Director, Guggenheim Funds
Distributors, Inc. “Our products are built around themes in which
Guggenheim has strong conviction.”
The BNY Mellon ABC Index universe includes US exchange-listed
ADRs of companies from Australia and Brazil and locally-listed
companies in Australia and Canada, which meet the follow criteria:
minimum one year of trading, minimum float market capitalization of
$200 million, and minimum three-month daily average trading volume
of $1 million. From this universe the 10 highest dividend yielding
companies, where possible, are selected from each country for a
total of 30 companies in the BNY Mellon ABC Index. Passive foreign
investment companies are excluded based upon the best information
available. As of May 31, 2011, the Index yield was 5.2%.*
For more information on the Guggenheim ABC High Dividend ETF,
click the hyperlink above or call 800-345-7999.
Guggenheim Funds Distributors, Inc.
Guggenheim Funds offers strategic investment solutions for
financial advisors and their valued clients. As an innovator in
exchange-traded funds (ETFs), unit investment trusts (UITs) and
closed-end funds (CEFs), Guggenheim Funds often leads its peers
with creative investment strategy solutions. Guggenheim Funds and
its affiliates provide supervision, management or servicing of
assets with a commitment to consistently delivering exceptional
service. Guggenheim Funds is a subsidiary of Guggenheim Partners,
LLC, and a global, diversified financial services firm with more
than $100 billion in assets under supervision. Guggenheim Partners,
through its affiliates, provides investment management, investment
advisory, insurance, investment banking, and capital markets
services. The firm is headquartered in Chicago and New York with a
global network of offices throughout the United States, Europe, and
Asia. Guggenheim Funds Investment Advisors, LLC, an affiliate of
Guggenheim Funds Distributors, Inc., serves as the Funds’
investment adviser.
*Source: BNY Mellon. The Fund seeks investment results that
correspond generally to the performance, before the Fund’s fees and
expenses of an equity index called the BNY Mellon ABC Index. The
Fund generally will invest in all of the securities comprising the
Index in proportion to their weightings in the Index. However,
under various circumstances, it may not be possible or practicable
to purchase all of the securities in the Index in those weightings.
In those circumstances, the Fund may purchase a sample of the
securities in the Index in proportions expected by the Investment
Adviser to replicate generally the performance of the Index as a
whole. There may also be instances in which the Investment Adviser
may choose to overweight another security in the Index or purchase
(or sell) securities not in the Index which the Investment Adviser
believes are appropriate to substitute for one or more Index
components in seeking to accurately track the Index. In addition,
from time to time securities are added to or removed from the
Index. The Fund may sell securities that are represented in the
Index or purchase securities that are not yet represented in the
Index in anticipation of their removal from or addition to the
Index.
RISK CONSIDERATIONS
Risks 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. Equity Risk:
The value of the securities held by the Fund will fall due to
general market and economic conditions, perceptions regarding the
industries in which the issuers of securities held by the Fund
participate, or factors relating to specific companies in which the
Fund invests. Foreign Investment Risk: Investing in non-U.S.
issuers, although limited to ADRs, may involve unique risks such as
currency, political, and economic risk, as well as less market
liquidity, generally greater market volatility and less complete
financial information than for U.S. issuers. Risks of investing in
each of Australia and Canada include commodity exposure risk,
geographic risk and trading partners’ risk. Commodity exposure risk
is exposure related to any negative changes in the agricultural or
mining industries which could therefore have an adverse impact on
the Australian or Canadian economy, as applicable. Geographic risk
is the risk that a natural disaster could occur in Australia or
Canada, as applicable. Trading partners risk is due to the
Australian or Canadian economy, as applicable, being heavily
dependent upon trading with its key partners. Any reduction in this
trading may cause an adverse impact on the economy in which the
Fund invests. Brazil has experienced substantial economic
instability resulting from, among other things, periods of very
high inflation, persistent structural public sector deficits and
significant devaluations of the currency of Brazil, and leading
also to a high degree of price volatility in both the Brazilian
equity and foreign currency markets. Brazilian companies may also
be adversely affected by high interest and unemployment rates, and
are particularly sensitive to fluctuations in commodity prices.
Concentration Risk: 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.
Currently, the Fund is subject to Financial Services Sector Risk
and Telecommunication Sector Risk. Therefore, the Fund can be
significantly affected by certain economic, competitive and
regulatory developments associated with these sectors. Small and
Medium-Sized Company Risk: Investing in securities of these
companies involves greater risk as their stocks may be more
volatile and less liquid than investing in more established
companies. These stocks may have returns that vary, sometimes
significantly, from the overall stock market. In addition the funds
are subject to Non- Correlation Risk, Replication Management
Risk, Issuer-Specific Changes, and Non-Diversified Fund
Risk. Please read the Fund’s prospectus for more detailed
information on these risks and considerations.
“BNY Mellon”, and “BNY Mellon ABC Index ” are service marks of
The Bank of New York Mellon Corporation (the “Bank”) and have been
licensed for use for certain purposes by the Investment Adviser.
The Fund is not sponsored, endorsed, sold or promoted by BNY Mellon
(“Licensor”). Licensor makes no representation or warranty, express
or implied, regarding the advisability of investing in securities
generally or in the Fund particularly or the ability of BNY Mellon
ABC Index (“Index”) to track general market performance. Licensor’s
only relationship to the Licensee is the licensing of the Index
which is determined, composed and calculated by Licensor without
regard to the Licensee or the Fund. Licensor has no obligation to
take the needs of the Licensee or the owners of the Fund into
consideration in determining, composing or calculating the Index.
Licensor shall not be liable to any person for any error in the
Index nor shall it be under any obligation to advise any person of
any error therein. Please refer to the prospectus for a full
disclaimer.
Investors should consider the investment objectives, risks,
charges and ongoing expenses of any ETF carefully before investing.
The prospectus contains this and other relevant information.
Investors should read the prospectus carefully before investing. To
obtain a prospectus, visit www.guggenheimfunds.com or
contact a securities representative or Guggenheim Funds
Distributors, Inc. 2455 Corporate West Drive, Lisle, IL 60532,
800-345-7999.
Member FINRA/SIPC (6/11)
NOT FDIC - INSURED • NOT BANK - GUARANTEED •
MAY LOSE VALUE