TVRAX — Guggenheim Directional Allocation Fund
Data updated: 2024-12-13
TVRAX — Guggenheim Directional Allocation Fund. United States Large Cap Blend / Core Equity · $204.60M AUM. Holdings, fees, performance and SEC filings.
TVRAX Fund Overview
TVRAX — Guggenheim Directional Allocation Fund is a US mutual fund managed by Transparent Value Trust, categorised as United States Large Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Transparent Value Trust
- Category: United States Large Cap Blend / Core Equity
- Assets under management: $204.60M
- 1-year return: 35.0%
- Ticker: TVRAX
- SEC CIK: 0001465886
- SEC series ID: S000037307
- Share class ID: C000115029
TVRAX Investment Objective and Strategy
Guggenheim Directional Allocation Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Transparent Value Trust.
Investment objective
The Funds investment objective is to provide investment results that, before fees and expenses, correspond generally to the performance of the Guggenheim Directional Allocation Index SM (the Directional Allocation Index or Index).
Principal investment strategy
The Fund uses a passive investment strategy designed to track the total return performance (before fees and expenses) of the Directional Allocation Index. The Indexs objective is to provide consistent long-term, risk adjusted outperformance of the broad U.S. equity markets with the goal of capturing more upside in rising equity markets and limiting the downside including up to 100% cash allocation during market downturns. The Directional Allocation Index consists of common stock of companies, and units of beneficial ownership in real estate investment trusts (REITs), in the Dow Jones U.S. Large-Cap Total Stock Market Index SM that Transparent Value, LLC , an affiliate of the Investment Manager, has selected for inclusion in the Index by applying Required Business Performance (RBP) Probability scores (as defined below) and other rules based signals as defined by the Index methodology.
The RBP Probability scores are derived from a quantitative process of Transparent Value, LLC. The RBP Probability scores are intended to measure the future business performance required of a company to support its stock price and to indicate the probability that the company will actually achieve that performance. Using a rules-based methodology, the Index is designed to participate in rising markets while attempting to preserve capital during market declines. The Index aims to allocate its holdings among the stocks in the three Guggenheim Directional Series Indexes (the Directional Series Indexes) the Guggenheim RBP Large-Cap Market Index SM (with components that have betas close to one), the Guggenheim RBP Large-Cap Aggressive Index SM (with components that have betas higher than one) and the Guggenheim RBP Large-Cap Defensive Index SM (with components that have betas lower than one) and cash.
The allocations are based on a moving average crossover system of analysis. The moving average crossover system used in the Indexs methodology uses three primary signals: economic condition, consumer sentiment and market momentum. The components of each of the Directional Series Indexes are derived from the Dow Jones U.S. Large-Cap Total Stock Market Index. As of December 31, 2017, the Directional Allocation Index was composed of 161 securities. A description of the Indexs methodology is available directly from Transparent Value, LLC (http://www.rbpinstitute.com). The Fund will invest in securities representing the holdings of the Directional Allocation Index, and cash or cash equivalents to the extent the Index is allocated to cash. The Fund may be invested in any combination of securities and cash or cash equivalents, as defined by the Index methodology weights.
In accordance with the Index methodology, the Index may be 100% allocated to cash. In such circumstances, the Fund will also hold 100% of its assets in cash or cash equivalents. The cash equivalents consist of shares of money market mutual funds and short-term funds, commercial paper, certificates of deposit, bankers acceptances, U.S. Government securities and repurchase agreements. To the extent that the Fund invests in money market mutual funds or short-term funds for cash positions, there will be some duplication of expenses because the Fund pays its pro-rata portion of such funds' advisory fees and operational fees. The Fund will generally invest in all of the securities comprising the Index in proportion to the weightings in the Index. Under various circumstances where it may not be possible or practicable (that is, in instances when a security in the Index becomes temporarily illiquid, unavailable or less liquid, or due to legal restrictions (for instance tax diversification requirements that apply to the Fund but not the Index or the Investment Manager is restricted from purchasing securities of a particular company on behalf of the Fund)) to purchase all of the securities in the Index or amounts of such securities in proportion to their weighting in the Index, Guggenheim will utilize a sampling methodology.
Sampling means that quantitative analysis is used to select securities that represent a sample of the securities in the Index with a similar investment profile as the Index in terms of key risk factors, performance attributes and other characteristics. Under normal circumstances, the Fund invests at least 80% of its net assets, plus the amount of borrowings for investment purposes, in securities and/or cash or cash equivalents consistent with the weighting of the Index at the time of initial purchase. This investment policy is non-fundamental and was not adopted pursuant to Rule 35d-1 and, therefore, may be changed by the Board without prior notice to shareholders. The Index is rebalanced at least quarterly or more frequently when economic conditions signal changes. In addition, the Index is reviewed on an ongoing basis to account for corporate actions such as mergers or de-listings.
The Investment Manager 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. As of December 31, 2017, market capitalizations of companies included in the Directional Index ranged from approximately $3.6 billion to $860.9 billion. The Fund also may invest up to 20% of its net assets in common stocks and REITs not included in the Index, but which the Investment Manager believes will help the Fund track the Index, as well as in exchange-traded funds (ETFs), futures, put and call options, interest rate, index and total return swap contracts, cash and cash equivalents. Such investments are intended to improve liquidity, reduce transaction costs and help the Fund stay fully invested, and are not intended to be used for hedging or speculative investment purposes.
The Investment Manager does not invest Fund assets based on its opinion of a security, instrument or company. The short-term funds in which the Fund will invest include short-term investment companies advised by the Investment Manager or an affiliate of the Investment Manager, or short-term ETFs, that invest in short-term fixed-income or floating rate securities. Investments by the Fund in these investment companies significantly increase the Funds exposure to the following asset categories: (i) a broad range of high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization (also known as junk bonds) or, if unrated, determined by the Investment Manager, to be of comparable quality; (ii) collateralized loan obligations (CLOs), other asset-backed securities and similarly structured debt investments; and (iii) other short-term fixed or floating rate debt securities.
Such investments expose the Fund to the risks of these asset categoriesand decreases in the value of these investments may cause the Fund to deviate from its investment objective. The Fund will concentrate its investments ( i.e., hold 25% or more of its total assets) in a particular industry or sector to approximately the same extent that the Index is so concentrated. The Board may change the Funds investment objective, investment strategy, Index and other policies without shareholder notice or approval, except as otherwise indicated. Due to its investment strategies, the turnover rate of the Fund should generally be similar to the turnover rate of the Index. As a result, the Fund may buy and sell securities frequently. This may result in higher transaction costs and additional capital gains liabilities than for a fund with a buy and hold strategy.
Higher transaction costs may negatively impact the Funds performance. Under adverse, unstable or abnormal market conditions, the Fund could invest some or all of its assets in cash, fixed-income instruments, government bonds, money market instruments, repurchase agreements or securities of other investment companies. The Fund may be unable to pursue or achieve its investment objective during that time and temporary investments could reduce the benefit from any upswing in the market.
TVRAX Holdings
Top 10 holdings of Guggenheim Directional Allocation Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Microsoft Corp | 7.07% |
| Apple Inc | 5.42% |
| NVIDIA Corp | 5.00% |
| Alphabet Inc | 4.44% |
| Meta Platforms Inc | 3.18% |
| Amazon.com Inc | 2.30% |
| Tesla Inc | 2.11% |
| JPMorgan Chase & Co | 2.00% |
| Visa Inc | 1.75% |
| Mastercard Inc | 1.74% |
TVRAX Portfolio Allocation
Asset-class allocation of Guggenheim Directional Allocation Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 99.7% |
TVRAX Performance
Total returns for TVRAX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 35.0% |
| 3 years (annualised) | 6.6% |
| 5 years (annualised) | 9.3% |
TVRAX Risk Information
Risk metrics for TVRAX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 12.0%
TVRAX Costs and Fees
TVRAX costs about $147 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.47%
- Gross expense ratio: 1.58%
- Portfolio turnover: 130%
- Brokerage commissions: 1.69 bps of average net assets (SEC N-CEN)
TVRAX Cashflows
Over the 12 months to 2024-09, Guggenheim Directional Allocation Fund had net outflows of $41.79M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-09 | −$2.02M |
| 2024-08 | −$2.76M |
| 2024-07 | −$2.45M |
| 2024-06 | −$3.73M |
| 2024-05 | −$3.08M |
| 2024-04 | −$2.97M |
TVRAX Debt Constituents
No individual debt constituents are reported in Guggenheim Directional Allocation Fund's latest SEC N-PORT filing.
TVRAX Prospectus and SEC Filings
Official Guggenheim Directional Allocation Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2024-01-29
- Prospectus supplement (497) — filed 2024-02-02
- Prospectus supplement (497) — filed 2023-05-25
- Portfolio holdings (N-PORT) — filed 2024-11-29
- Portfolio holdings (N-PORT) — filed 2024-08-29
- Portfolio holdings (N-PORT) — filed 2024-05-30
- Annual census (N-CEN) — filed 2024-12-13
- Annual census (N-CEN) — filed 2023-12-12
Related Funds
Other United States Large Cap Blend / Core Equity funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.