Calculating NAVs
For all mutual funds, the price at which you buy, sell, and exchange shares is the “net asset value” per share, also known as NAV.
Each fund calculates NAVs by:
- Taking the current market value of its total assets
- Subtracting any liabilities
- Dividing that amount by the total number of shares owned by shareholders
With the exception of the twice-a-day traded funds, the funds calculate NAV once each business day as of the regularly scheduled close of normal trading on the NYSE (normally 4:00 p.m. ET). If the primary exchange or market where a fund’s securities or other investment trade closes early—such as on days in advance of holidays generally observed by participants in these markets—Guggenheim Investments may calculate NAV as of the earlier closing time.
Twice-a-day traded funds calculate NAV twice each business day, first in the morning and again in the afternoon. The morning NAV is calculated as of 10:45 a.m., ET and the afternoon NAV is calculated as of the regularly scheduled close of normal trading on the NYSE (normally 4:00 p.m., ET). On days when the exchange or market is scheduled to close early, such as the day before the holiday, the twice-a-day priced funds will only calculate NAV once at the close of the exchange or market.
The Europe 1.25x Strategy and Japan 2x Strategy Funds value their assets using procedures approved by the Board of Trustees because of the time difference between the close of the relevant foreign exchanges and the time the Europe 1.25x Strategy and the Japan 2x Strategy Funds price their shares at the close of the NYSE. As such, the value assigned to the Europe 1.25x Strategy and Japan 2x Strategy Funds may not be the quoted or published prices of those securities on their primary markets or exchanges. When calculating the NAV of the Europe 1.25x Strategy and Japan 2x Strategy Funds, this procedure is susceptible to the unavoidable risk that the valuation may be higher or lower than the price at which the securities might actually trade if their relevant foreign markets or exchanges were open.
The U.S. Government Money Market Fund values its assets using the amortized cost method of valuation pursuant to procedures approved by the fund's board of trustees. More information about the valuation of the fund's holdings and the amortized cost method can be found in the Statement of Additional Information.
In calculating NAV, each fund generally values its investment portfolio based on the market price of the securities at the time the fund determines NAV. If market prices are unavailable or a fund thinks that they are unreliable, the fund prices those securities at fair value as determined in good faith using methods approved by the Board of Trustees. The use of fair valuation in pricing a security involves the consideration of a number of subjective factors and therefore, is susceptible to the unavoidable risk that the valuation may be higher or lower than the price at which the security might actually trade if a reliable market price were readily available.
You could lose money by investing in the U.S. Government Money Market Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
