Guggenheim Inflation Defense & Dividend Portfolio Series 10

The Inflation Defense Trust will invest in a portfolio of securities of 50 global firms that the Sponsor believes may benefit from strong or rising commodity prices. These firms include companies involved in the extraction and production of commodities (energy and non-energy natural resources, as well as agricultural production). The Sponsor believes the Trust’s holdings may have the ability to outperform broader equity markets during periods of high or rising inflation. The Trust will seek to achieve its investment objective through holding stocks with the potential for capital appreciation and dividend income.

See “Investment Policies” in Part B of the prospectus for more information.

The Trust’s portfolio was constructed and the securities were selected seven business days prior to the initial date of deposit (the “Security Selection Date”) using the Security Selection Rules outlined below.

Security Selection Rules:

In constructing the Trust’s portfolio, 50 securities were selected based on the following rules-based criteria. Except as set forth herein, the investment strategy utilizes information provided by FactSet Research Systems, Inc.

1. Initial Universe: Start with an initial global universe of securities which meet the following criteria as of the Security Selection Date:

• Security must be a common share or depositary receipt on any public securities exchange in the world.

• Security may not be an investment fund, exchange-traded fund, limited partnership or Trust (with the exception of Canadian Royalty Trusts).

• Market capitalization greater than $200 million. Market capitalization is determined by the closing price as of the Security Selection Date. If the security is not U.S. dollar-denominated, the currency rate used for the security is the closing price, with currency exchange rates provided by WM/Reuters when share price is non-U.S. dollar-denominated.

• Minimum liquidity of $0.6 million, however, American Depositary Receipts (“ADRs”) traded on either the New York Stock Exchange or NASDAQ Stock Market do not have to meet this liquidity minimum as long as the ADR’s reference foreign security does meet the minimum liquidity criteria based on that foreign security’s own trading volume. Liquidity is determined by the average 30 day trading volume in U.S. dollars and is calculated as the average of a 30 trading day look back from the Security Selection Date (i.e., trading volume in shares multiplied by the closing price for the day, with currency exchange rates provided by WM/Reuters when share price is non-U.S. dollar-denominated).

• For companies with multiple listings, only one security is included. Preference is given to an ADR traded on either the New York Stock Exchange or NASDAQ Stock Market, if available, or to the most liquid security, as determined by the above calculation, if the company is only traded on non-U.S. exchanges.

• Companies must be engaged in the following FactSet global industries/sectors (note the strategy “Sleeve” names, which are used to specify target weights in the selection strategy):

Sleeve                                FactSet Sectors /
Category                            Industries Included
Agriculture                         Agricultural Chemicals
                                          Forest Products
Energy                               Oil & Gas Production
                                          Integrated Oil
                                          Coal
Mining                                Aluminum
                                          Other Metals/Minerals
Precious                             Precious Metals, Gold
Metals

2. Rank on Fundamentals: Rank every company identified in the initial universe against other companies in the same industry Sleeve, as provided by FactSet Industry Classification System, along each of the following reported financial metrics. Each ranking is determined as of the Security Selection Date using the most recently reported information and uses a scale of 1 through 10 (1 representing the highest scoring 10% in the Sleeve, and 10 representing the lowest scoring 10% in the Sleeve):

• Return on assets as provided by FactSet Research Systems, Inc., and calculated as latest four quarters of reported operating income divided by the average of most recent reported total assets and year ago reported total assets.

• Earnings before interest and taxes for the latest four quarters divided by enterprise value, as provided by FactSet Research Systems, Inc. Enterprise value is determined by adding the equity market capitalization as of the most recent closing price with the total outstanding long term and short term debt as determined by the most recently available balance sheet, and then subtracting any cash and short term investments as determined by the most recently available balance sheet.

• Year-over-year growth in sales per share, as provided by FactSet Research Systems, Inc. Trailing year-over-year growth is the percentage change in sales per-share for the trailing 12 months versus the sales per-share from the prior 12 months. Sales per-share is the trailing 12 months of sales from the most recent trailing quarterly or semi-annual filings, whichever is most current, divided by the end of period reported count of common shares outstanding used to calculate basic earnings per share.

Each financial metric will create a separate score so that every company will have three scores. These three scores are averaged together to create one composite score for a company. This composite score is used to rank the companies in the next step in order to determine the sub-universe of securities.

3. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements, with each requirement being applied independently to the initial universe from the other requirements in this step, as of the Security Selection Date:

• Exclude the lowest ranked 25% of securities from the initial universe determined by the average of the three financial rankings described in step 2.

• Exclude the 20% of the initial universe with the lowest trailing six month total return.

• Exclude any security that does not have a minimum one year of trading history for the company, as determined by the trading history on the exchange from which the security will be purchased or, for a ADR, by the trading history for the reference security on the exchange such security is principally traded.

• Exclude securities not listed on a public securities exchange in one of the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Philippines, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, United Kingdom and United States.

• Exclude securities that have a pending cash or stock merger and acquisition or bankruptcy which will lead to delisting the security from the qualifying exchanges above. Such events will be determined by reviewing the announced merger and acquisition data from Bloomberg and if the announced date falls before the Security Selection Date, an announcement of an agreement to be acquired in whole for cash or stock from an acquiring company or bankruptcy filing will cause exclusion.

4. Selection: Select from the sub-universe the fifty top dividend yielding securities combined from the Sleeves (with higher rank given to larger market capitalization when yields are equal) based on the “indicated dividend yield” as provided by Bloomberg L.P. and equally weight these securities as of the Security Selection Date. Selected securities must adhere to following portfolio limits as of the Security Selection Date:

• Maximum one-third of the strategy in small-capitalization companies (less than $1 billion USD) as of the Security Selection Date.

• Maximum two-thirds of the strategy will consist of small-capitalization and mid-capitalization companies (less than $5 billion USD) as of the Security Selection Date.

• Target Sleeve weightings:
a. Energy 40.00%
b. Mining 23.33%
c. Agriculture 20.00%
d. Precious Metals 16.67%

• If there are not enough sub-universe securities in the Agriculture or Precious Metals Sleeves, then additional securities are selected from the Energy and Mining Sleeves. If an even number of substitute securities is needed, select the next highest yielding securities from the Energy and Mining Sleeves equally. If an odd number of substitute securities is needed, then (a) if applicable, select an even number of the next highest yielding securitie from the Energy and Mining Sleeves equally, and then (b) select the next highest yielding security from the Energy and Mining Sleeves combined. For example, if five substitute securities are needed, the next two highest yielding securities will be selected from each of the Energy and Mining Sleeves and the next highest yielding security will be selected, whether it is from the Energy or Mining Sleeve.

• If there are not enough sub-universe securities in the Energy or Mining Sleeves to achieve their target sleeve weightings, then equally adjust upward the weightings of all of the qualifying sub-universe securities in the Energy or Mining Sleeve in order to achieve the target sleeve weighting.

Once an investment limitation has been reached, additional securities of that type will not be included in the Trust and the next highest yielding security will be used.

Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date.

Guggenheim Partners Investment Management, LLC

Guggenheim Partners Investment Management, LLC is a subsidiary of Guggenheim Partners, LLC and an affiliate of the Sponsor, which offers financial services expertise within its asset management, investment advisory, capital markets, institutional finance and merchant banking business lines. Clients consist of a mix of individuals, family offices, endowments, foundations, insurance companies, pension plans and other institutions that together have enTrusted the firm with supervision of more than $100 billion in assets. A global diversified financial services firm, Guggenheim Partners, LLC office locations include New York, Chicago, Los Angeles, Miami, Boston, Philadelphia, St. Louis, Houston, London, Dublin, Geneva, Hong Kong, Singapore, Mumbai and Dubai.

The Sponsor is also a subsidiary of Guggenheim Partners, LLC. See “General Information” for additional information.

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. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

• Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. Starting in December 2007, economic activity declined across all sectors of the economy, and the United States experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Standard & Poor’s Rating Services lowered its long-term sovereign credit rating on the United States to “AA+” from “AAA,” which could lead to increased interest rates and volatility. Extraordinary steps have been taken by the governments of several leading countries to combat the economic crisis; however, the impact of these measures is not yet fully known and cannot be predicted.

• Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.

• The Trust includes securities of companies in the basic materials sector. The Trust is concentrated in the basic materials sector. As a result, the factors that impact the basic materials sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Some of the risks associated with the basic materials sector are listed below. General risks of companies in the basic materials sector include the general state of the economy, consolidation, domestic and international politics and excess capacity. In addition, basic materials companies may also be significantly affected by volatility of commodity prices, import controls, worldwide competition, liability for environmental damage, depletion of resources and mandated expenditures for safety and pollution control devices.

• The Trust includes securities issued by companies in the energy sector. The Trust is concentrated in the energy sector. As a result, the factors that impact the energy sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Some of the risks associated with the energy sector are listed below. Companies in the energy sector are subject to volatile fluctuations in price and supply of energy fuels, and can be impacted by international politics and conflicts, including the unrest in Iraq and hostilities in the Middle East, terrorist attacks, the success of exploration projects, reduced demand as a result of increases in energy efficiency and energy conservation, natural disasters, clean-up and litigation costs associated with environmental damage and extensive regulation.

• The Trust includes securities issued by companies involved with the production of certain commodities. Commodity companies include those companies involved in the production of building materials, aluminum, nonferrous metals, precious metals and steel and other commodities, as well as companies that explore for, produce, refine, distribute or sell petroleum, gas products and other commodities. General risks of commodity companies include price and supply fluctuations, excess capacity, economic recession, government regulations and overall capital spending rates. Exposure to commodities markets may subject the Trust to greater volatility than other investments. Certain commodities may be produced in a limited number of countries and may be controlled by a small number of producers.

• The Trust invests in securities of companies in the agribusiness industry. Companies involved in the agribusiness industry are subject to numerous risks, including cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, weather conditions, quotas, product liability litigation and governmental regulation and subsidies. Generally, the agribusiness industry is affected by the economic health of consumers. A weak economy and its effect on consumer spending would adversely affect agribusiness companies.

• The Trust includes securities issued by companies involved in the precious metals business. Precious metals companies are subject to risks associated with the exploration, development and production of precious metals including competition for land and difficulties in obtaining required governmental approval to mine land. In addition, the price of gold and other precious metals is subject to wide fluctuations and may be influenced by limited markets, expected inflation, central bank demand and availability of substitutes.

• The Trust includes securities issued by companies involved in the metals and mining business. Risks of investing in metals and mining company stocks include inaccurate estimates of mineral reserves and future production levels, varying expectations of mine production costs, technological and operational hazards in mining and mine development activities and mandated expenditures for safety and pollution control devices.

• The Trust invests in foreign securities, ADRs and Global Depositary Receipts (“GDRs”). The Trust’s investment in foreign securities, ADRs and GDRs presents additional risk. ADRs and GDRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.

• The Trust includes securities issued by companies headquartered in countries considered to be emerging markets. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk.

• The Trust includes securities whose value may be dependent on currency exchange rates. The U.S. dollar value of these securities may vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.

• The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of 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.

• Inflation may lead to a decrease in the value of assets or income from investments.

• The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.

See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.