N-CSRS 1 sr063009vit_scivip.htm DWS SMALL CAP INDEX VIP

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

FORM N-CSRS

 

Investment Company Act file number

811-07507

 

DWS Investments VIT Funds

(Exact Name of Registrant as Specified in Charter)

 

345 Park Avenue

New York, NY 10154-0004

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s Telephone Number, including Area Code: (212) 454-7190

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and Address of Agent for Service)

 

Date of fiscal year end:

12/31

 

Date of reporting period:

06/30/09

 

 

ITEM 1.           REPORT TO STOCKHOLDERS

 

 

June 30, 2009

SEMIANNUAL REPORT

DWS INVESTMENTS VIT FUNDS

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DWS Small Cap Index VIP

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Contents

3 Performance Summary

4 Information About Your Portfolio's Expenses

5 Portfolio Summary

6 Investment Portfolio

29 Financial Statements

31 Financial Highlights

32 Notes to Financial Statements

36 Proxy Voting

37 Summary of Management Fee Evaluation by Independent Fee Consultant

40 Summary of Administrative Fee Evaluation by Independent Fee Consultant

This report must be preceded or accompanied by a prospectus. To obtain an additional prospectus, call (800) 778-1482 or your financial representative. We advise you to consider the Portfolio's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Portfolio. Please read the prospectus carefully before you invest.

The Portfolio is subject to investment risks, including possible loss of principal amount invested. The Portfolio may not be able to mirror the Russell 2000® Index closely enough to track its performance for several reasons, including the Portfolio's cost to buy and sell securities, the flow of money into and out of the Portfolio, and the potential underperformance of stocks selected. Stocks of small companies involve greater risk than securities of larger, more-established companies, as they often have limited product lines, markets or financial resources and may be subject to more erratic and abrupt market movements. All of these factors may result in greater share price volatility. Please read the Portfolio's prospectus for specific details regarding its investments and risk profile.

Russell 2000 is a trademark of the Frank Russell Company and has been licensed for use by the Portfolio's investment advisor.

DWS Investments is part of Deutsche Bank's Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.

NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Performance Summary June 30, 2009

All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please contact your participating insurance company for the Portfolio's most recent month-end performance. Performance figures for Classes A and B differ because each class maintains a distinct expense structure. Performance doesn't reflect charges and fees ("contract charges") associated with the separate account that invests in the Portfolio or any variable life insurance policy or variable annuity contract for which the Portfolio is an investment option. These charges and fees will reduce returns.

The total annual portfolio operating expense ratios, gross of any fee waivers or expense reimbursements, as stated in the fee table of the prospectus dated May 1, 2009 are .54% and .79% for Class A and Class B shares, respectively. Please see the Information About Your Portfolio's Expenses, the Financial Highlights and Notes to the Financial Statements (Note C, Related Parties) sections of this report for gross and net expense-related disclosure for the period ended June 30, 2009.

Returns and ranking during all periods shown reflect a fee waiver and/or expense reimbursement. Without this waiver/reimbursement, returns would have been lower.

Growth of an Assumed $10,000 Investment

[] DWS Small Cap Index VIP — Class A

[] Russell 2000® Index

Russell 2000® Index is an unmanaged, capitalization-weighted measure of approximately 2,000 small US stocks in the Russell 3000 Index.

Index returns assume reinvestment of dividends and, unlike portfolio returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.

scif_g10k120

 

Yearly periods ended June 30

 

Comparative Results (as of June 30, 2009)

DWS Small Cap Index VIP

6-Month‡

1-Year

3-Year

5-Year

10-Year

Class A

Growth of $10,000

$10,228

$7,462

$7,209

$8,945

$12,121

Average annual total return

2.28%

-25.38%

-10.33%

-2.21%

1.94%

Russell 2000 Index
 Growth of $10,000

$10,264

$7,499

$7,317

$9,176

$12,650

Average annual total return

2.64%

-25.01%

-9.89%

-1.71%

2.38%

DWS Small Cap Index VIP

6-Month‡

1-Year

3-Year

5-Year

Life of Class*

Class B

Growth of $10,000

$10,227

$7,446

$7,158

$8,841

$10,409

Average annual total return

2.27%

-25.54%

-10.55%

-2.43%

.56%

Russell 2000 Index
 Growth of $10,000

$10,264

$7,499

$7,317

$9,176

$10,932

Average annual total return

2.64%

-25.01%

-9.89%

-1.71%

1.25%

The growth of $10,000 is cumulative.

‡ Total returns shown for periods less than one year are not annualized.
* The Portfolio commenced offering Class B shares on April 30, 2002. Index returns began on April 30, 2002.

Information About Your Portfolio's Expenses

As an investor of the Portfolio, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Portfolio expenses. Examples of transaction costs include contract charges, redemption fees and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Portfolio and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Portfolio limited these expenses; had it not done so, expenses would have been higher. The example in the table is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (January 1, 2009 to June 30, 2009).

The tables illustrate your Portfolio's expenses in two ways:

• Actual Portfolio Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Portfolio using the Portfolio's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.

• Hypothetical 5% Portfolio Return. This helps you to compare your Portfolio's ongoing expenses (but not transaction costs) with those of other mutual funds using the Portfolio's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical Portfolio return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.

Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.

Expenses and Value of a $1,000 Investment for the six months ended June 30, 2009

Actual Portfolio Return

Class A

 

Class B

 

Beginning Account Value 1/1/09

$ 1,000.00

 

$ 1,000.00

 

Ending Account Value 6/30/09

$ 1,022.80

 

$ 1,022.70

 

Expenses Paid per $1,000*

$ 2.46

 

$ 3.71

 

Hypothetical 5% Portfolio Return

Class A

 

Class B

 

Beginning Account Value 1/1/09

$ 1,000.00

 

$ 1,000.00

 

Ending Account Value 6/30/09

$ 1,022.36

 

$ 1,021.12

 

Expenses Paid per $1,000*

$ 2.46

 

$ 3.71

 

* Expenses are equal to the Portfolio's annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 365.

Annualized Expense Ratios

Class A

 

Class B

 

DWS Small Cap Index VIP

.49%

 

.74%

 

For more information, please refer to the Portfolio's prospectus.

These tables do not reflect charges and fees ("contract charges") associated with the separate account that invests in the Portfolio or any variable life insurance policy or variable annuity contract for which the Portfolio is an investment option.

Portfolio Summary

Asset Allocation (As a % of Investment Portfolio excluding Securities Lending Collateral)

6/30/09

12/31/08

 

 

 

Common Stocks

100%

96%

Cash Equivalents

—

3%

Government & Agency Obligations

—

1%

 

100%

100%

Sector Diversification (As a % of Common Stocks and Rights)

6/30/09

12/31/08

 

 

 

Information Technology

20%

16%

Financials

19%

23%

Industrials

16%

17%

Health Care

15%

15%

Consumer Discretionary

13%

11%

Energy

5%

5%

Materials

4%

4%

Utilities

4%

4%

Consumer Staples

3%

4%

Telecommunication Services

1%

1%

 

100%

100%

Ten Largest Equity Holdings (2.4% of Net Assets)

1. Palm, Inc.
Provides mobile computing products

0.3%

2. Owens & Minor, Inc.
Distributes medical/surgical supplies throughout the United States

0.3%

3. 3Com Corp.
Manufacturer of data networking systems

0.3%

4. VistaPrint Ltd.
Online supplier of graphic design

0.3%

5. Piedmont Natural Gas Co., Inc.
An energy and services company that transports, distributes and sells natural gas

0.2%

6. Solera Holdings, Inc.
Provides software and services to the automobile insurance claims processing industry

0.2%

7. Jack Henry & Associates, Inc.
Developer of integrated computer systems

0.2%

8. Tetra Tech, Inc.
Provider of management consulting and technical services

0.2%

9. Polycom, Inc.
Manufacturer of audio and data conferencing products

0.2%

10. Skyworks Solutions, Inc.
Provider of front-end modules, radio frequency systems

0.2%

Asset allocation, sector diversification and holdings are subject to change.

For more complete details about the Portfolio's investment portfolio, see page 6. A complete list of portfolio holdings of the Portfolio is posted as of the month end on www.dws-investments.com on or about the 15th day of the following month. More frequent posting of portfolio holdings information may be made from time to time on www.dws-investments.com.

Following the Portfolio's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.

Investment Portfolio June 30, 2009 (Unaudited)

 


Shares

Value ($)

 

 

Common Stocks 98.4%

Consumer Discretionary 12.8%

Auto Components 0.6%

American Axle & Manufacturing Holdings, Inc.

15,173

52,195

Amerigon, Inc.*

7,200

43,920

ArvinMeritor, Inc. (a)

25,572

112,261

Cooper Tire & Rubber Co.

20,274

201,118

Dana Holding Corp.*

33,666

43,092

Dorman Products, Inc.*

3,710

51,309

Drew Industries, Inc.*

6,300

76,671

Exide Technologies*

17,922

66,849

Fuel Systems Solutions, Inc.* (a)

4,345

87,726

Hawk Corp. "A"*

1,690

23,407

Lear Corp.*

20,200

10,100

Modine Manufacturing Co.

10,906

52,349

Raser Technologies, Inc.* (a)

17,916

50,165

Spartan Motors, Inc. (a)

11,150

126,330

Standard Motor Products, Inc.

5,063

41,871

Stoneridge, Inc.*

5,500

26,400

Superior Industries International, Inc.

8,071

113,801

Tenneco, Inc.*

16,272

172,483

Wonder Auto Technology, Inc.*

5,172

52,392

 

1,404,439

Automobiles 0.0%

Winnebago Industries, Inc.

10,214

75,890

Distributors 0.0%

Audiovox Corp. "A"*

5,400

31,644

Core-Mark Holding Co., Inc.*

3,199

83,366

 

115,010

Diversified Consumer Services 1.3%

American Public Education, Inc.*

6,062

240,116

Bridgepoint Education, Inc.*

4,882

82,994

Capella Education Co.*

4,917

294,774

ChinaCast Education Corp.*

10,100

71,912

Coinstar, Inc.*

10,081

269,163

Corinthian Colleges, Inc.*

26,882

455,112

CPI Corp.

1,624

27,592

Grand Canyon Education, Inc.*

5,520

92,626

Jackson Hewitt Tax Service, Inc.

9,566

59,883

K12, Inc.* (a)

8,161

175,869

Learning Tree International, Inc.*

2,700

27,810

Lincoln Educational Services Corp.*

3,428

71,748

Mac-Gray Corp.*

3,732

49,412

Matthews International Corp. "A"

10,200

317,424

Nobel Learning Communities, Inc.*

1,137

13,041

Pre-Paid Legal Services, Inc.* (a)

2,578

112,375

Princeton Review, Inc.*

4,474

24,204

Regis Corp.

14,698

255,892

Sotheby's (a)

22,498

317,447

Steiner Leisure Ltd.*

5,000

152,650

Stewart Enterprises, Inc. "A"

27,000

130,140

Universal Technical Institute, Inc.*

6,800

101,524

 

3,343,708

Hotels Restaurants & Leisure 2.6%

AFC Enterprises, Inc.*

9,100

61,425

Ambassadors Group, Inc.

6,222

85,677

Ameristar Casinos, Inc.

8,837

168,168

Bally Technologies, Inc.*

18,243

545,831

Benihana, Inc. "A"*

4,155

26,260

 


Shares

Value ($)

 

 

BJ's Restaurants, Inc.* (a)

6,499

109,638

Bluegreen Corp.*

5,800

14,616

Bob Evans Farms, Inc.

10,289

295,706

Buffalo Wild Wings, Inc.* (a)

6,006

195,315

California Pizza Kitchen, Inc.*

6,600

87,714

Caribou Coffee Co., Inc.*

2,042

13,110

Carrols Restaurant Group, Inc.*

3,474

23,137

CEC Entertainment, Inc.*

7,731

227,910

Churchill Downs, Inc.

3,319

111,718

CKE Restaurants, Inc.

16,400

139,072

Cracker Barrel Old Country Store, Inc.

7,604

212,152

Denny's Corp.*

32,500

69,875

DineEquity, Inc. (a)

6,044

188,512

Domino's Pizza, Inc.*

12,300

92,127

Dover Downs Gaming & Entertainment, Inc.

5,660

26,319

Einstein Noah Restaurant Group, Inc.*

1,465

12,672

Frisch's Restaurants, Inc.

655

19,349

Gaylord Entertainment Co.* (a)

12,002

152,545

Great Wolf Resorts, Inc.*

11,156

22,758

Interval Leisure Group, Inc.*

13,244

123,434

Isle of Capri Casinos, Inc.*

5,511

73,406

Jack in the Box, Inc.*

19,150

429,917

Krispy Kreme Doughnuts, Inc.*

20,100

60,300

Lakes Entertainment, Inc.*

5,819

16,933

Landry's Restaurants, Inc.*

2,760

23,736

LIFE TIME FITNESS, Inc.* (a)

13,528

270,695

Luby's, Inc.*

6,500

26,390

Marcus Corp.

6,608

69,516

McCormick & Schmick's Seafood Restaurants, Inc.*

4,794

36,482

Monarch Casino & Resort, Inc.*

3,312

24,178

Morgans Hotel Group Co.*

7,914

30,311

Multimedia Games, Inc.*

8,686

43,083

O'Charley's, Inc.

6,000

55,500

Orient-Express Hotels Ltd. "A"

25,907

219,950

P.F. Chang's China Bistro, Inc.*

7,979

255,807

Papa John's International, Inc.*

7,292

180,769

Peet's Coffee & Tea, Inc.* (a)

3,826

96,415

Pinnacle Entertainment, Inc.*

20,279

188,392

Red Lion Hotels Corp.*

4,093

19,646

Red Robin Gourmet Burgers, Inc.*

5,176

97,050

Ruby Tuesday, Inc.*

17,769

118,342

Ruth's Hospitality Group, Inc.*

7,200

26,424

Shuffle Master, Inc.*

17,930

118,517

Sonic Corp.*

20,427

204,883

Speedway Motorsports, Inc.

4,154

57,159

Texas Roadhouse, Inc. "A"* (a)

16,700

182,197

The Cheesecake Factory, Inc.*

20,133

348,301

The Steak n Shake Co.*

8,614

75,286

Town Sports International Holdings, Inc.*

6,800

25,500

Universal Travel Group*

3,400

38,046

Vail Resorts, Inc.*

9,818

263,319

Youbet.com, Inc.*

9,720

32,076

 

6,733,566

Household Durables 1.1%

American Greetings Corp. "A"

13,200

154,176

Beazer Homes USA, Inc.* (a)

14,028

25,671

Blyth, Inc.

2,000

65,580

 


Shares

Value ($)

 

 

Brookfield Homes Corp.* (a)

3,184

12,736

Cavco Industries, Inc.*

2,000

50,660

CSS Industries, Inc.

2,429

49,503

Ethan Allen Interiors, Inc.

8,606

89,158

Furniture Brands International, Inc.

12,800

38,784

Helen of Troy Ltd.*

9,900

166,221

Hooker Furniture Corp.

3,500

40,180

Hovnanian Enterprises, Inc. "A"* (a)

18,267

43,110

iRobot Corp.*

6,600

85,668

La-Z-Boy, Inc.

17,809

84,058

M/I Homes, Inc.*

6,410

62,754

Meritage Homes Corp.*

10,482

197,691

National Presto Industries, Inc.

1,600

121,760

Ryland Group, Inc.

14,401

241,361

Sealy Corp.* (a)

13,900

27,244

Skyline Corp.

2,300

50,025

Standard Pacific Corp.*

34,800

70,644

Stanley Furniture Co., Inc.

3,296

35,564

Tempur-Pedic International, Inc.

25,083

327,835

Tupperware Brands Corp.

21,042

547,513

Universal Electronics, Inc.*

4,789

96,594

 

2,684,490

Internet & Catalog Retail 0.4%

1-800 FLOWERS.COM, Inc. "A"*

9,500

18,240

Blue Nile, Inc.* (a)

4,200

180,558

drugstore.com, Inc.*

28,601

52,054

Gaiam, Inc. "A"*

5,400

29,538

HSN, Inc.*

13,348

141,088

NutriSystem, Inc.

10,295

149,278

Orbitz Worldwide, Inc.* (a)

11,701

22,232

Overstock.com, Inc.* (a)

5,200

62,192

PetMed Express, Inc.*

7,700

115,731

Shutterfly, Inc.*

6,914

96,450

Stamps.com, Inc.*

4,017

34,064

Ticketmaster Entertainment, Inc.*

12,551

80,578

US Auto Parts Network, Inc.*

2,943

11,095

 

993,098

Leisure Equipment & Products 0.6%

Brunswick Corp.

30,311

130,944

Callaway Golf Co.

22,445

113,796

Eastman Kodak Co.

90,000

266,400

JAKKS Pacific, Inc.*

9,321

119,588

Leapfrog Enterprises, Inc.*

11,900

27,251

Marine Products Corp.

3,050

11,438

Polaris Industries, Inc. (a)

10,243

329,005

Pool Corp. (a)

16,186

268,040

RC2 Corp.*

5,819

76,985

Smith & Wesson Holding Corp.*

18,404

104,535

Sport Supply Group, Inc.

2,863

24,593

Steinway Musical Instruments, Inc.*

2,200

23,540

Sturm, Ruger & Co., Inc.

6,304

78,422

 

1,574,537

Media 0.8%

Arbitron, Inc.

8,900

141,421

Ascent Media Corp. "A"*

4,706

125,085

Belo Corp. "A"

28,100

50,299

Carmike Cinemas, Inc.

3,550

29,749

Cinemark Holdings, Inc.

10,723

121,384

CKX, Inc.*

19,464

138,000

Crown Media Holdings, Inc.* (a)

4,100

6,847

Dolan Media* (a)

10,066

128,744

E.W. Scripps Co. "A"

8,796

18,384

Fisher Communications, Inc.

2,000

25,580

 


Shares

Value ($)

 

 

Global Sources Ltd.*

4,880

35,186

Harte-Hanks, Inc.

12,603

116,578

Journal Communications, Inc. "A"

12,400

13,020

Knology, Inc.*

9,870

85,178

Lin TV Corp. "A"*

7,600

12,768

Live Nation, Inc.*

28,118

136,653

LodgeNet Interactive Corp.*

6,546

22,256

Martha Stewart Living Omnimedia, Inc. "A"*

9,422

28,831

Mediacom Communications Corp. "A"*

13,100

66,941

National CineMedia, Inc.

14,100

194,016

Outdoor Channel Holdings, Inc.*

4,600

27,140

Playboy Enterprises, Inc. "B"*

7,160

17,972

PRIMEDIA, Inc.

6,490

13,045

RCN Corp.*

12,300

73,431

Reading International, Inc. "A"*

5,337

24,283

Rentrak Corp.*

3,065

50,358

Scholastic Corp.

7,800

154,362

Sinclair Broadcast Group, Inc. "A"

15,691

30,441

Valassis Communications, Inc.*

16,144

98,640

Value Line, Inc.

300

9,861

World Wrestling Entertainment, Inc. (a)

7,722

96,988

 

2,093,441

Multiline Retail 0.3%

99 Cents Only Stores*

15,688

213,043

Dillard's, Inc. "A"

17,718

163,005

Fred's, Inc.

13,468

169,697

Retail Ventures, Inc.*

9,199

20,054

Saks, Inc.*

40,858

181,001

Tuesday Morning Corp.*

10,000

33,700

 

780,500

Specialty Retail 3.1%

America's Car-Mart, Inc.*

3,511

71,976

AnnTaylor Stores Corp.*

20,178

161,020

Asbury Automotive Group, Inc.

11,119

113,859

bebe stores, inc.

8,571

58,969

Big 5 Sporting Goods Corp.

7,146

79,035

Books-A-Million, Inc.

2,112

15,016

Borders Group, Inc.*

16,400

60,352

Brown Shoe Co., Inc.

14,625

105,885

Build-A-Bear Workshop, Inc.*

6,100

27,267

Cabela's, Inc. "A"* (a)

13,792

169,642

Cato Corp. "A"

9,150

159,576

Charlotte Russe Holding, Inc.*

7,000

90,160

Charming Shoppes, Inc.*

39,600

147,312

Children's Place Retail Stores, Inc.*

8,019

211,942

Christopher & Banks Corp.

11,902

79,862

Citi Trends, Inc.*

4,900

126,812

Coldwater Creek, Inc.*

19,100

115,746

Collective Brands, Inc.*

21,478

312,934

Conn's, Inc.* (a)

3,400

42,500

Destination Maternity Corp.*

1,506

25,120

Dress Barn, Inc.* (a)

15,080

215,644

DSW, Inc. "A"*

4,100

40,385

Gander Mountain Co.*

1,493

8,958

Genesco, Inc.*

6,427

120,635

Group 1 Automotive, Inc.

8,303

216,044

Gymboree Corp.*

9,813

348,165

Haverty Furniture Companies, Inc. (a)

5,900

53,985

hhgregg, Inc.*

3,700

56,092

Hibbett Sports, Inc.* (a)

9,575

172,350

 


Shares

Value ($)

 

 

Hot Topic, Inc.*

15,280

111,697

J. Crew Group, Inc.* (a)

16,820

454,476

Jo-Ann Stores, Inc.*

8,891

183,777

Jos. A. Bank Clothiers, Inc.*

6,105

210,378

Kirkland's, Inc.*

4,038

48,496

Lithia Motors, Inc. "A"

5,499

50,811

Lumber Liquidators, Inc.*

4,777

75,286

Midas, Inc.*

4,700

49,256

Monro Muffler Brake, Inc.

5,802

149,169

New York & Co., Inc.*

8,045

24,859

OfficeMax, Inc.

26,275

165,007

Pacific Sunwear of California, Inc.*

21,100

71,107

Pier 1 Imports, Inc.*

30,167

60,032

Rent-A-Center, Inc.*

22,172

395,327

REX Stores Corp.*

2,400

24,144

Sally Beauty Holdings, Inc.* (a)

31,628

201,154

Shoe Carnival, Inc.*

3,258

38,868

Sonic Automotive, Inc. "A"

8,400

85,344

Stage Stores, Inc.

12,744

141,458

Stein Mart, Inc.*

8,896

78,819

Syms Corp.*

1,700

12,767

Systemax, Inc.*

3,400

40,494

Talbots, Inc.

8,000

43,200

The Buckle, Inc. (a)

8,574

272,396

The Finish Line, Inc. "A"

14,170

105,141

The Men's Wearhouse, Inc.

17,477

335,209

The Pep Boys- Manny, Moe & Jack

16,798

170,332

The Wet Seal, Inc. "A"*

32,460

99,652

Tractor Supply Co.*

12,016

496,501

Tween Brands, Inc.*

8,211

54,850

Ulta Salon, Cosmetics & Fragrance, Inc.*

9,190

102,193

West Marine, Inc.*

4,441

24,470

Zale Corp.*

8,000

27,520

Zumiez, Inc.* (a)

6,666

53,395

 

7,864,828

Textiles, Apparel & Luxury Goods 2.0%

American Apparel, Inc.*

10,700

38,948

Carter's, Inc.*

19,052

468,870

Cherokee, Inc.

2,500

49,550

Columbia Sportswear Co.

3,900

120,588

Crocs, Inc.*

28,131

95,645

Deckers Outdoor Corp.*

4,399

309,118

FGX International Holdings Ltd.*

4,797

54,590

Fossil, Inc.*

15,702

378,104

Fuqi International, Inc.* (a)

3,300

68,343

G-III Apparel Group Ltd.*

4,400

50,556

Iconix Brand Group, Inc.*

20,068

308,646

Jones Apparel Group, Inc.

28,679

307,726

K-Swiss, Inc. "A"

9,300

79,050

Kenneth Cole Productions, Inc. "A"

2,910

20,457

Liz Claiborne, Inc.

31,870

91,785

Lululemon Athletica, Inc.* (a)

13,994

182,342

Maidenform Brands, Inc.*

6,696

76,803

Movado Group, Inc.

5,700

60,078

Oxford Industries, Inc.

4,492

52,332

Perry Ellis International, Inc.*

3,100

22,568

Quiksilver, Inc.*

42,824

79,224

Skechers USA, Inc. "A"*

11,081

108,261

Steven Madden Ltd.*

5,438

138,397

The Warnaco Group, Inc.*

15,377

498,215

Timberland Co. "A"*

14,589

193,596

True Religion Apparel, Inc.*

8,724

194,545

 


Shares

Value ($)

 

 

Under Armour, Inc. "A"* (a)

11,094

248,284

Unifi, Inc.*

13,809

19,609

UniFirst Corp.

4,687

174,216

Volcom, Inc.*

6,235

77,937

Weyco Group, Inc.

2,300

53,107

Wolverine World Wide, Inc.

16,613

366,483

 

4,987,973

Consumer Staples 3.5%

Beverages 0.1%

Boston Beer Co., Inc. "A"*

3,000

88,770

Coca-Cola Bottling Co.

1,376

75,859

Heckmann Corp.*

26,686

100,072

National Beverage Corp.*

3,820

40,683

 

305,384

Food & Staples Retailing 1.0%

Arden Group, Inc. "A"

379

47,413

Casey's General Stores, Inc.

17,041

437,783

Diedrich Coffee, Inc.*

938

22,306

Great Atlantic & Pacific Tea Co., Inc.* (a)

11,140

47,345

Ingles Markets, Inc. "A"

4,300

65,532

Nash Finch Co.

4,400

119,064

Pantry, Inc.*

7,400

122,840

PriceSmart, Inc.

5,200

87,100

Ruddick Corp.

14,642

343,062

Spartan Stores, Inc.

7,400

91,834

Susser Holdings Corp.*

2,300

25,737

The Andersons, Inc. (a)

6,100

182,634

United Natural Foods, Inc.*

14,345

376,556

Village Super Market, Inc. "A"

2,000

59,500

Weis Markets, Inc.

3,639

121,979

Winn-Dixie Stores, Inc.*

18,394

230,661

 

2,381,346

Food Products 1.4%

AgFeed Industries, Inc.* (a)

9,622

57,058

Alico, Inc. (a)

1,130

33,923

American Dairy, Inc.*

2,761

109,501

American Italian Pasta Co. "A"*

7,012

204,330

B&G Foods, Inc. "A"

5,933

49,897

Cal-Maine Foods, Inc.

4,716

117,711

Calavo Growers, Inc.

3,427

67,957

Chiquita Brands International, Inc.* (a)

15,376

157,758

Darling International, Inc.*

27,549

181,823

Diamond Foods, Inc.

5,701

159,058

Farmer Brothers Co.

2,144

49,055

Fresh Del Monte Produce, Inc.*

13,727

223,201

Griffin Land & Nurseries, Inc.

1,000

31,280

Hain Celestial Group, Inc.*

13,682

213,576

HQ Sustainable Maritime Industries, Inc.*

3,000

27,450

Imperial Sugar Co.

4,300

52,073

J & J Snack Foods Corp.

4,732

169,879

Lancaster Colony Corp.

6,400

282,048

Lance, Inc.

9,320

215,572

Lifeway Foods, Inc.*

1,481

19,105

Omega Protein Corp.*

6,600

26,796

Overhill Farms, Inc.*

5,050

26,613

Sanderson Farms, Inc.

6,950

312,750

Seneca Foods Corp. "A"*

2,099

70,149

Smart Balance, Inc.*

21,010

143,078

Synutra International, Inc.* (a)

5,903

64,933

Tootsie Roll Industries, Inc.

8,075

183,222

 


Shares

Value ($)

 

 

TreeHouse Foods, Inc.*

10,570

304,099

Zapata Corp.*

2,645

18,012

Zhongpin, Inc.*

6,900

71,484

 

3,643,391

Household Products 0.2%

Central Garden & Pet Co. "A"*

21,200

208,820

Oil-Dri Corp. of America

1,524

22,632

Orchids Paper Products Co.*

1,542

31,688

WD-40 Co.

5,488

159,152

 

422,292

Personal Products 0.6%

American Oriental Bioengineering, Inc.* (a)

21,000

111,090

Bare Escentuals, Inc.*

22,329

198,058

Chattem, Inc.* (a)

6,471

440,675

China Sky One Medical, Inc.* (a)

3,425

46,169

China-Biotics, Inc.*

2,500

26,950

Elizabeth Arden, Inc.*

7,957

69,465

Female Health Co.*

4,952

23,770

Inter Parfums, Inc.

5,250

38,535

Mannatech, Inc. (a)

6,100

20,130

Medifast, Inc.*

4,246

48,659

Nu Skin Enterprises, Inc. "A" (a)

16,607

254,087

Nutraceutical International Corp.*

3,491

36,271

Prestige Brands Holdings, Inc.*

11,860

72,939

Revlon, Inc. "A"*

6,257

34,038

Schiff Nutrition International, Inc.*

3,390

17,255

USANA Health Sciences, Inc.*

1,978

58,806

 

1,496,897

Tobacco 0.2%

Alliance One International, Inc.*

29,789

113,198

Star Scientific, Inc.* (a)

24,200

21,538

Universal Corp.

8,368

277,065

Vector Group Ltd.

12,529

179,039

 

590,840

Energy 4.5%

Energy Equipment & Services 1.6%

Allis-Chalmers Energy, Inc.*

19,438

44,902

Basic Energy Services, Inc.*

8,052

54,995

Bolt Technology Corp.*

2,900

32,596

Boots & Coots, Inc.*

25,346

35,231

Bristow Group, Inc.* (a)

9,845

291,707

Bronco Drilling Co., Inc.*

8,067

34,527

Cal Dive International, Inc.*

14,949

129,010

CARBO Ceramics, Inc. (a)

6,475

221,445

Complete Production Services, Inc.*

19,567

124,446

Dawson Geophysical Co.*

2,600

77,610

Dril-Quip, Inc.*

9,699

369,532

ENGlobal Corp.*

6,739

33,156

Geokinetics, Inc.*

1,900

25,935

Global Industries Ltd.*

33,583

190,080

Gulf Island Fabrication, Inc.

4,100

64,903

GulfMark Offshore, Inc.*

7,700

212,520

Hercules Offshore, Inc.*

29,481

117,040

Hornbeck Offshore Services, Inc.*

7,690

164,489

ION Geophysical Corp.*

30,700

78,899

Key Energy Services, Inc.*

41,602

239,627

Lufkin Industries, Inc.

4,993

209,956

Matrix Service Co.*

9,012

103,458

NATCO Group, Inc. "A"*

6,705

220,729

Natural Gas Services Group*

4,400

58,520

Newpark Resources, Inc.*

30,025

85,571

 


Shares

Value ($)

 

 

OYO Geospace Corp.*

1,400

35,924

Parker Drilling Co.*

39,057

169,507

PHI, Inc. (Non Voting)*

4,300

73,702

Pioneer Drilling Co.*

14,400

68,976

RPC, Inc.

9,150

76,402

SulphCo, Inc.* (a)

16,900

15,548

Superior Well Services, Inc.*

5,048

30,036

T-3 Energy Services, Inc.*

4,200

50,022

TETRA Technologies, Inc.*

25,217

200,727

TGC Industries, Inc.

4,074

19,840

Union Drilling, Inc.*

3,732

24,706

Willbros Group, Inc.*

13,275

166,070

 

4,152,344

Oil, Gas & Consumable Fuels 2.9%

Alon USA Energy, Inc.

2,677

27,707

APCO Argentina, Inc.

2,989

57,478

Approach Resources, Inc.*

3,500

24,150

Arena Resources, Inc.*

12,809

407,967

Atlas America, Inc.

11,397

203,664

ATP Oil & Gas Corp.* (a)

10,142

70,588

Berry Petroleum Co. "A"

14,315

266,116

Bill Barrett Corp.*

12,899

354,207

BPZ Resources, Inc.*

26,647

130,304

Brigham Exploration Co.*

28,777

100,432

Carrizo Oil & Gas, Inc.* (a)

9,636

165,257

Cheniere Energy, Inc.*

17,800

52,332

Clayton Williams Energy, Inc.*

2,000

37,740

Clean Energy Fuels Corp.* (a)

9,972

85,859

Contango Oil & Gas Co.*

4,000

169,960

CREDO Petroleum Corp.*

2,114

22,578

Crosstex Energy, Inc.

13,600

56,576

Cubic Energy, Inc.*

7,838

8,465

CVR Energy, Inc.*

7,515

55,085

Delek US Holdings, Inc.

4,200

35,616

Delta Petroleum Corp.* (a)

61,227

118,168

DHT Maritime, Inc.

16,464

85,777

Endeavour International Corp.* (a)

38,200

51,952

Evergreen Energy, Inc.*

39,300

38,514

FX Energy, Inc.* (a)

14,700

55,713

General Maritime Corp.

16,358

161,781

GeoResources, Inc.*

2,400

24,480

GMX Resources, Inc.* (a)

8,515

90,600

Golar LNG Ltd.

11,000

94,050

Goodrich Petroleum Corp.*

8,451

207,810

Gran Tierra Energy, Inc.* (a)

68,340

235,773

Green Plains Renewable Energy, Inc.*

2,922

19,139

Gulfport Energy Corp.*

8,658

59,307

Harvest Natural Resources, Inc.*

12,100

53,361

International Coal Group, Inc.*

31,755

90,819

Isramco, Inc.*

336

35,794

James River Coal Co.*

9,528

144,159

Knightsbridge Tankers Ltd.

5,700

77,748

McMoRan Exploration Co.* (a)

21,568

128,545

Nordic American Tanker Shipping Ltd. (a)

14,193

451,621

Northern Oil and Gas, Inc.*

9,337

59,477

Oilsands Quest, Inc.* (a)

49,700

47,712

Panhandle Oil & Gas, Inc.

2,200

43,186

Parallel Petroleum Corp.*

13,200

25,608

Patriot Coal Corp.*

22,012

140,437

Penn Virginia Corp.

15,215

249,070

Petroleum Development Corp.*

5,078

79,674

 


Shares

Value ($)

 

 

PetroQuest Energy, Inc.* (a)

15,011

55,391

PrimeEnergy Corp.*

209

7,484

Rex Energy Corp.*

8,363

47,669

Rosetta Resources, Inc.*

17,566

153,703

Ship Finance International Ltd.

14,573

160,740

Stone Energy Corp.*

12,028

89,248

Swift Energy Co.*

10,766

179,254

Syntroleum Corp.*

20,697

45,740

Teekay Tankers Ltd. "A" (a)

3,911

36,333

Toreador Resources Corp.*

6,681

44,763

Uranerz Energy Corp.*

14,427

27,123

Uranium Energy Corp.*

15,302

44,376

USEC, Inc.*

38,295

203,729

VAALCO Energy, Inc.*

18,700

79,101

Venoco, Inc.*

5,800

44,486

W&T Offshore, Inc.

23,642

230,273

Warren Resources, Inc.*

19,323

47,341

Western Refining, Inc.* (a)

10,384

73,311

Westmoreland Coal Co.*

2,800

22,680

World Fuel Services Corp.

9,967

410,939

Zion Oil & Gas, Inc.*

3,778

40,122

 

7,246,162

Financials 19.0%

Capital Markets 2.2%

Allied Capital Corp.

60,249

209,667

American Capital Ltd.

72,287

232,041

Ares Capital Corp.

32,601

262,764

BGC Partners, Inc. "A"

16,416

62,217

BlackRock Kelso Capital Corp.

3,800

23,674

Broadpoint Gleacher Securities, Inc.*

12,637

70,514

Calamos Asset Management, Inc. "A"

6,600

93,126

Capital Southwest Corp.

1,000

72,350

Cohen & Steers, Inc.

6,037

90,253

Diamond Hill Investment Group*

700

28,126

Duff & Phelps Corp. "A"

5,627

100,048

E*TRADE Financial Corp.*

165,833

212,266

Epoch Holding Corp.

4,061

35,087

Evercore Partners, Inc. "A"

3,500

68,740

FBR Capital Markets Corp.*

6,304

29,629

FCStone Group, Inc.*

8,650

34,168

GAMCO Investors, Inc. "A"

2,495

121,008

GFI Group, Inc.

22,425

151,144

Gladstone Capital Corp. (a)

6,870

51,731

Gladstone Investment Corp.

6,600

31,878

Harris & Harris Group, Inc.*

9,500

55,385

Hercules Technology Growth Capital, Inc.

12,426

103,881

International Assets Holding Corp.*

1,449

21,547

JMP Group, Inc.

4,691

36,074

KBW, Inc.*

11,662

335,399

Knight Capital Group, Inc. "A"*

31,173

531,500

Kohlberg Capital Corp.

6,800

42,976

LaBranche & Co., Inc.*

19,418

83,497

Main Street Capital Corp.

2,400

32,856

MCG Capital Corp.*

23,194

56,361

MF Global Ltd.*

33,275

197,321

MVC Capital, Inc.

7,300

61,758

NGP Capital Resources Co.

8,200

48,134

Oppenheimer Holdings, Inc. "A"

3,342

70,750

optionsXpress Holdings, Inc.

14,161

219,920

PennantPark Investment Corp.

6,896

48,962

Penson Worldwide, Inc.*

6,835

61,173

 


Shares

Value ($)

 

 

Piper Jaffray Companies, Inc.*

6,571

286,956

Prospect Capital Corp.

14,784

136,013

Pzena Investment Management, Inc. "A"

2,800

21,224

Riskmetrics Group, Inc.*

7,351

129,819

Safeguard Scientifics, Inc.*

39,865

52,622

Sanders Morris Harris Group, Inc.

6,136

33,748

Stifel Financial Corp.* (a)

9,193

442,091

SWS Group, Inc.

8,409

117,474

Teton Advisors, Inc.*

40

0

Thomas Weisel Partners Group, Inc.*

6,721

40,460

TICC Capital Corp.

9,591

42,296

TradeStation Group, Inc.*

11,500

97,290

Triangle Capital Corp.

2,500

27,300

US Global Investors, Inc. "A"

4,700

43,522

Virtus Investment Partners, Inc.*

1,760

25,854

Westwood Holdings Group, Inc.

1,838

76,847

 

5,561,441

Commercial Banks 5.9%

1st Source Corp.

4,933

85,193

Alliance Financial Corp.

1,287

36,499

American National Bankshares, Inc.

1,893

36,497

Ameris Bancorp.

4,060

25,659

Ames National Corp.

2,109

51,481

Arrow Financial Corp.

2,900

78,300

BancFirst Corp.

2,300

79,534

Banco Latinoamericano de Exportaciones SA "E"

9,200

114,356

Bancorp. Rhode Island, Inc.

1,041

20,518

Bank of Kentucky Financial Corp.

929

26,012

Bank of Marin Bancorp.

1,638

44,144

Bank of the Ozarks, Inc.

4,500

97,335

Banner Corp. (a)

5,700

21,774

Bar Harbor Bankshares

868

26,778

Boston Private Financial Holdings, Inc.

23,599

105,724

Bridge Bancorp., Inc.

2,006

54,603

Bryn Mawr Bank Corp.

2,205

41,608

Camden National Corp.

2,512

85,483

Cape Bancorp., Inc.*

3,654

31,534

Capital City Bank Group, Inc. (a)

3,881

65,395

Cardinal Financial Corp.

9,984

78,175

Cathay General Bancorp. (a)

17,036

162,012

Center Bancorp., Inc.

3,385

27,588

Centerstate Banks, Inc.

2,700

20,034

Central Pacific Financial Corp. (a)

10,212

38,295

Century Bancorp., Inc. "A"

1,033

19,049

Chemical Financial Corp. (a)

7,070

140,764

Chicopee Bancorp., Inc.*

1,931

25,045

Citizens & Northern Corp. (a)

2,800

57,596

Citizens Holdings Co.

1,400

43,680

Citizens Republic Bancorp., Inc.*

38,920

27,633

City Holding Co.

5,300

160,908

CNB Financial Corp.

2,740

38,826

CoBiz Financial, Inc.

5,700

36,537

Colonial BancGroup, Inc. (a)

65,000

40,300

Columbia Banking System, Inc.

6,118

62,587

Community Bank System, Inc.

11,300

164,528

Community Trust Bancorp., Inc.

5,088

136,104

CVB Financial Corp. (a)

23,219

138,617

Eagle Bancorp., Inc.

3,033

26,599

East West Bancorp., Inc. (a)

22,000

142,780

Enterprise Bancorp., Inc.

1,493

17,617

 


Shares

Value ($)

 

 

Enterprise Financial Services Corp.

3,626

32,960

Farmers Capital Bank Corp.

2,073

52,177

Financial Institutions, Inc.

3,400

46,444

First BanCorp. — North Carolina

4,816

75,515

First BanCorp. — Puerto Rico

27,866

110,071

First Bancorp., Inc.

2,700

52,569

First Busey Corp. (a)

8,518

62,607

First California Financial Group, Inc.*

1,640

10,119

First Commonwealth Financial Corp.

28,491

180,633

First Community Bancshares, Inc.

3,472

44,580

First Financial Bancorp.

13,085

98,399

First Financial Bankshares, Inc.

6,986

351,815

First Financial Corp. — Indiana

3,923

123,888

First Merchants Corp.

6,928

55,632

First Midwest Bancorp., Inc. (a)

16,800

122,808

First of Long Island Corp.

1,711

39,593

First South Bancorp., Inc. (a)

2,400

27,840

FirstMerit Corp. (a)

27,457

466,222

FNB Corp. (a)

30,148

186,616

German American Bancorp., Inc.

3,537

50,968

Glacier Bancorp., Inc. (a)

20,580

303,967

Great Southern Bancorp., Inc.

3,543

72,809

Guaranty Bancorp.*

16,300

31,133

Hampton Roads Bankshares, Inc.

5,915

48,799

Hancock Holding Co.

7,948

258,231

Harleysville National Corp.

13,830

65,001

Heartland Financial USA, Inc. (a)

4,287

61,218

Heritage Financial Corp.

1,668

19,282

Home Bancorp., Inc.*

2,819

33,659

Home Bancshares, Inc.

4,939

94,039

IBERIABANK Corp.

5,357

211,119

Independent Bank Corp. — Massachusetts

6,983

137,565

International Bancshares Corp.

17,980

185,374

Investors Bancorp., Inc.*

15,783

144,572

Lakeland Bancorp., Inc.

6,673

59,990

Lakeland Financial Corp.

4,051

76,969

MainSource Financial Group, Inc.

7,158

53,112

MB Financial, Inc.

12,281

125,143

Merchants Bancshares, Inc.

1,476

32,752

Metro Bancorp., Inc.*

1,500

28,890

MidSouth Bancorp., Inc.

1,407

23,638

Nara Bancorp., Inc.

8,300

42,994

National Bankshares, Inc.

2,224

53,376

National Penn Bancshares, Inc. (a)

29,095

134,128

NBT Bancorp., Inc.

11,445

248,471

Northfield Bancorp., Inc.

6,235

72,451

Northrim BanCorp., Inc.

1,982

27,589

Norwood Financial Corp.

531

16,652

Ohio Valley Banc Corp.

1,246

36,558

Old National Bancorp. (a)

22,702

222,934

Old Point Financial Corp.

515

9,528

Old Second Bancorp., Inc. (a)

4,094

24,155

Oriental Financial Group, Inc.

8,142

78,977

Orrstown Financial Services, Inc.

1,658

61,744

Pacific Capital Bancorp.

16,668

35,670

Pacific Continental Corp.

4,104

49,782

PacWest Bancorp.

8,593

113,084

Park National Corp. (a)

3,708

209,428

Peapack-Gladstone Financial Corp.

2,600

50,154

Penns Woods Bancorp., Inc.

1,195

34,822

Peoples Bancorp., Inc.

3,595

61,295

Peoples Financial Corp.

1,094

20,786

 


Shares

Value ($)

 

 

Pinnacle Financial Partners, Inc.*

8,200

109,224

Porter Bancorp., Inc.

696

10,544

PremierWest Bancorp.

6,833

23,164

PrivateBancorp., Inc. (a)

11,711

260,453

Prosperity Bancshares, Inc.

15,450

460,873

Renasant Corp.

7,379

110,833

Republic Bancorp., Inc. "A"

3,313

74,841

Republic First Bancorp., Inc.*

2,119

16,528

S&T Bancorp., Inc.

8,260

100,442

S.Y. Bancorp., Inc.

3,860

93,296

Sandy Spring Bancorp., Inc. (a)

5,500

80,850

Santander BanCorp.*

884

6,153

SCBT Financial Corp.

4,446

105,326

Shore Bancshares, Inc.

2,600

46,644

Sierra Bancorp. (a)

2,333

29,466

Signature Bank*

11,894

322,565

Simmons First National Corp. "A"

4,709

125,824

Smithtown Bancorp., Inc.

4,793

61,302

South Financial Group, Inc.

30,379

36,151

Southside Bancshares, Inc.

4,631

105,911

Southwest Bancorp., Inc.

4,716

46,028

State Bancorp., Inc.

4,711

35,615

StellarOne Corp.

7,497

97,086

Sterling Bancorp.

6,018

50,250

Sterling Bancshares, Inc.

27,699

175,335

Sterling Financial Corp. — Washington (a)

17,611

51,248

Suffolk Bancorp.

3,402

87,227

Sun Bancorp., Inc.*

4,438

22,989

Susquehanna Bancshares, Inc.

29,907

146,245

SVB Financial Group* (a)

11,031

300,264

Texas Capital Bancshares, Inc.*

11,928

184,526

The Bancorp., Inc.*

3,467

20,802

Tompkins Financial Corp.

2,888

138,480

Tower Bancorp., Inc.

1,090

38,313

TowneBank

7,346

102,844

TriCo Bancshares

4,571

70,850

Trustmark Corp.

19,240

371,717

UCBH Holdings, Inc. (a)

42,161

53,123

UMB Financial Corp.

10,773

409,482

Umpqua Holdings Corp.

20,165

156,480

Union Bankshares Corp. (a)

4,472

66,946

United Bankshares, Inc. (a)

12,757

249,272

United Community Banks, Inc. (a)

14,537

87,080

United Security Bancshares, Inc.

1,907

41,763

Univest Corp. of Pennsylvania

4,281

86,733

Washington Banking Co.

2,905

27,365

Washington Trust Bancorp., Inc.

4,587

81,786

Webster Financial Corp.

18,254

146,945

WesBanco, Inc.

7,688

111,784

West Bancorp., Inc.

5,400

27,000

Westamerica Bancorp.

9,735

482,953

Western Alliance Bancorp.*

15,938

109,016

Wilber Corp.

1,688

18,737

Wilshire Bancorp., Inc.

7,300

41,975

Wintrust Financial Corp.

8,350

134,268

Yadkin Valley Financial Corp.

5,178

35,780

 

15,085,694

Consumer Finance 0.4%

Advance America Cash Advance Centers, Inc.

14,750

65,343

Cardtronics, Inc.*

3,300

12,573

Cash America International, Inc.

9,868

230,813

 


Shares

Value ($)

 

 

CompuCredit Holdings Corp.*

5,893

13,554

Credit Acceptance Corp.* (a)

2,037

44,508

Dollar Financial Corp.*

8,100

111,699

EZCORP, Inc. "A"*

15,648

168,685

First Cash Financial Services, Inc.*

7,673

134,431

Nelnet, Inc. "A"*

6,440

87,520

QC Holdings, Inc.

832

4,276

Rewards Network, Inc.*

6,019

22,752

The First Marblehead Corp.*

22,000

44,440

World Acceptance Corp.* (a)

5,629

112,073

 

1,052,667

Diversified Financial Services 0.5%

Ampal-American Israel Corp. "A"*

6,562

16,011

Asset Acceptance Capital Corp.*

4,934

37,942

California First National Bancorp.

432

4,925

Compass Diversified Holdings

8,600

69,574

Encore Capital Group, Inc.*

4,300

56,975

Fifth Street Finance Corp.

6,800

68,272

Financial Federal Corp.

8,750

179,812

Life Partners Holdings, Inc.

2,325

32,969

MarketAxess Holdings, Inc.*

10,600

101,018

Medallion Financial Corp.

4,500

34,425

NewStar Financial, Inc.*

8,756

16,724

PHH Corp.* (a)

18,237

331,549

PICO Holdings, Inc.*

6,314

181,212

Portfolio Recovery Associates, Inc.* (a)

5,153

199,576

Primus Guaranty Ltd.*

8,400

19,824

Resource America, Inc.

4,300

23,134

 

1,373,942

Insurance 3.2%

Ambac Financial Group, Inc.

99,185

91,250

American Equity Investment Life Holding Co.

17,872

99,726

American Physicians Capital, Inc.

2,365

92,613

American Physicians Service Group, Inc.

2,006

45,516

American Safety Insurance Holdings Ltd.*

3,175

43,212

Amerisafe, Inc.*

6,300

98,028

AmTrust Financial Services, Inc.

7,492

85,409

Argo Group International Holdings Ltd.*

10,373

292,726

Assured Guaranty Ltd. (a)

20,400

252,552

Baldwin & Lyons, Inc.

2,625

51,712

Citizens, Inc.* (a)

11,844

72,012

CNA Surety Corp.*

5,543

74,775

Conseco, Inc.*

62,120

147,224

Crawford & Co. "B"* (a)

7,300

35,040

Delphi Financial Group, Inc. "A"

14,490

281,541

Donegal Group, Inc. "A"

3,566

54,239

Eastern Insurance Holdings, Inc.

2,444

22,998

eHealth, Inc.*

8,300

146,578

EMC Insurance Group, Inc.

1,700

35,377

Employers Holdings, Inc.

16,000

216,800

Enstar Group Ltd.*

2,234

131,471

FBL Financial Group, Inc. "A"

4,147

34,254

First Acceptance Corp.*

4,205

8,957

First Mercury Financial Corp.

5,118

70,475

Flagstone Reinsurance Holdings Ltd.

13,002

133,921

FPIC Insurance Group, Inc.*

2,500

76,550

Greenlight Capital Re Ltd. "A"*

9,400

162,714

Hallmark Financial Services, Inc.*

2,863

20,470

Harleysville Group, Inc.

4,500

126,990

 


Shares

Value ($)

 

 

Hilltop Holdings, Inc.*

13,263

157,432

Horace Mann Educators Corp.

13,068

130,288

Independence Holding Co.

1,640

10,430

Infinity Property & Casualty Corp.

4,613

168,190

IPC Holdings Ltd.

18,806

514,156

Kansas City Life Insurance Co.

1,400

37,674

Maiden Holdings Ltd. (a)

16,598

108,883

Max Capital Group Ltd.

15,496

286,056

Meadowbrook Insurance Group, Inc.

19,116

124,827

Mercer Insurance Group, Inc.

1,702

27,062

Montpelier Re Holdings Ltd.

29,167

387,629

National Financial Partners Corp.

14,227

104,142

National Interstate Corp.

2,269

34,443

National Western Life Insurance Co. "A"

745

86,979

Navigators Group, Inc.*

4,200

186,606

NYMAGIC, Inc.

1,455

20,195

Phoenix Companies, Inc.*

39,800

66,466

Platinum Underwriters Holdings Ltd.

17,200

491,748

PMA Capital Corp. "A"*

11,800

53,690

Presidential Life Corp.

6,900

52,233

ProAssurance Corp.*

11,074

511,730

RLI Corp.

6,255

280,224

Safety Insurance Group, Inc.

4,474

136,725

Seabright Insurance Holdings*

7,612

77,110

Selective Insurance Group, Inc.

17,700

226,029

State Auto Financial Corp.

4,690

82,075

Stewart Information Services Corp.

5,600

79,800

Tower Group, Inc.

13,526

335,174

United America Indemnity Ltd. "A"*

12,309

58,960

United Fire & Casualty Co.

7,400

126,910

Universal Insurance Holdings, Inc.

4,094

20,552

Zenith National Insurance Corp.

12,586

273,620

 

8,263,168

Real Estate Investment Trusts 5.2%

Acadia Realty Trust (REIT)

13,295

173,500

Agree Realty Corp. (REIT)

2,597

47,603

Alexander's, Inc. (REIT)

700

188,720

American Campus Communities, Inc. (REIT)

17,529

388,793

American Capital Agency Corp.

3,281

75,365

Anthracite Capital, Inc. (REIT) (a)

17,800

11,036

Anworth Mortgage Asset Corp. (REIT)

34,110

245,933

Ashford Hospitality Trust (REIT)

21,977

61,755

Associated Estates Realty Corp. (REIT)

5,000

29,800

BioMed Realty Trust, Inc. (REIT)

32,953

337,109

CapLease, Inc. (REIT)

15,565

42,959

Capstead Mortgage Corp. (REIT)

21,353

271,397

Care Investment Trust, Inc. (REIT)

3,700

19,240

CBL & Associates Properties, Inc. (REIT)

24,543

132,287

Cedar Shopping Centers, Inc. (REIT)

13,000

58,760

Cogdell Spencer, Inc. (REIT)

8,988

38,559

Colonial Properties Trust (REIT) (a)

16,293

120,568

Cousins Properties, Inc. (REIT) (a)

13,027

110,729

DCT Industrial Trust, Inc. (REIT)

59,074

241,022

Developers Diversified Realty Corp. (REIT)

46,117

225,051

DiamondRock Hospitality Co. (REIT)

36,100

225,986

DuPont Fabros Technology, Inc. (REIT)

8,813

83,018

Dynex Capital, Inc. (REIT)

3,434

28,159

 


Shares

Value ($)

 

 

EastGroup Properties, Inc. (REIT)

8,418

277,962

Education Realty Trust, Inc. (REIT)

9,590

41,141

Entertainment Properties Trust (REIT)

11,749

242,029

Equity Lifestyle Properties, Inc. (REIT)

7,038

261,673

Equity One, Inc. (REIT) (a)

10,942

145,091

Extra Space Storage, Inc. (REIT)

28,900

241,315

FelCor Lodging Trust, Inc. (REIT)

21,171

52,081

First Industrial Realty Trust, Inc. (REIT) (a)

13,600

59,160

First Potomac Realty Trust (REIT)

9,200

89,700

Franklin Street Properties Corp. (REIT)

19,819

262,602

Getty Realty Corp. (REIT)

5,750

108,503

Gladstone Commercial Corp. (REIT)

2,731

35,394

Glimcher Realty Trust (REIT)

12,600

36,540

Gramercy Capital Corp. (REIT)*

13,553

21,820

Hatteras Financial Corp. (REIT)

12,098

345,882

Healthcare Realty Trust, Inc. (REIT)

19,842

333,941

Hersha Hospitality Trust (REIT)

16,000

39,680

Highwoods Properties, Inc. (REIT)

23,711

530,415

Home Properties, Inc. (REIT) (a)

11,021

375,816

Inland Real Estate Corp. (REIT)

23,300

163,100

Investors Real Estate Trust (REIT)

19,690

175,044

iStar Financial, Inc. (REIT)

33,442

94,975

Kilroy Realty Corp. (REIT)

12,064

247,795

Kite Realty Group Trust (REIT)

14,993

43,780

LaSalle Hotel Properties (REIT)

17,891

220,775

Lexington Realty Trust (REIT)

27,773

94,428

LTC Properties, Inc. (REIT)

7,800

159,510

Medical Properties Trust, Inc. (REIT) (a)

26,821

162,803

MFA Financial, Inc. (REIT)

74,748

517,256

Mid-America Apartment Communities, Inc. (REIT)

9,420

345,808

Mission West Properties, Inc. (REIT)

6,300

43,029

Monmouth Real Estate Investment Corp. "A" (REIT)

5,900

34,574

National Health Investors, Inc. (REIT)

8,689

232,083

National Retail Properties, Inc. (REIT)

26,850

465,847

NorthStar Realty Finance Corp. (REIT) (a)

20,824

58,932

OMEGA Healthcare Investors, Inc. (REIT)

27,633

428,864

Parkway Properties, Inc. (REIT) (a)

7,200

93,600

Pennsylvania Real Estate Investment Trust (REIT) (a)

11,883

59,415

Post Properties, Inc. (REIT)

14,934

200,713

Potlatch Corp. (REIT)

13,285

322,693

PS Business Parks, Inc. (REIT)

5,100

247,044

RAIT Financial Trust (REIT)

22,200

30,414

Ramco-Gershenson Properties Trust (REIT)

5,800

58,058

Redwood Trust, Inc. (REIT)

26,001

383,775

Resource Capital Corp. (REIT)

6,200

19,840

Saul Centers, Inc. (REIT)

2,316

68,484

Sovran Self Storage, Inc. (REIT)

7,572

186,271

Strategic Hotels & Resorts, Inc. (REIT)

28,800

31,968

Sun Communities, Inc. (REIT)

5,900

81,302

Sunstone Hotel Investors, Inc. (REIT)

25,273

135,211

Tanger Factory Outlet Centers, Inc. (REIT)

12,364

400,965

Transcontinental Realty Investors, Inc. (REIT)*

238

2,873

 


Shares

Value ($)

 

 

U-Store-It Trust (REIT)

16,900

82,810

UMH Properties, Inc. (REIT)

2,562

20,419

Universal Health Realty Income Trust (REIT)

3,700

116,624

Urstadt Biddle Properties "A" (REIT)

6,800

95,744

Walter Investment Management Corp. (REIT)*

5,975

79,348

Washington Real Estate Investment Trust (REIT)

19,536

437,020

Winthrop Realty Trust (REIT)

3,661

32,693

 

13,333,981

Real Estate Management & Development 0.2%

American Realty Investors, Inc.*

631

6,436

Avatar Holdings, Inc.*

2,200

39,974

China Housing & Land Development, Inc.*

8,800

50,688

Consolidated-Tomoka Land Co.

1,775

62,267

Forestar Group, Inc.*

12,353

146,754

Tejon Ranch Co.*

3,600

95,364

 

401,483

Thrifts & Mortgage Finance 1.4%

Abington Bancorp., Inc.

6,900

54,924

Astoria Financial Corp.

28,758

246,744

Bank Mutual Corp.

15,731

137,174

BankFinancial Corp.

6,991

61,940

Beneficial Mutual Bancorp., Inc.*

10,900

104,640

Berkshire Hills Bancorp., Inc.

4,540

94,341

Brookline Bancorp., Inc.

19,772

184,275

Brooklyn Federal Bancorp., Inc.

600

6,750

Cheviot Financial Corp.

616

4,928

Clifton Savings Bancorp., Inc.

3,000

32,280

Danvers Bancorp., Inc.

5,800

78,010

Dime Community Bancshares

8,969

81,708

ESB Financial Corp.

2,879

37,773

ESSA Bancorp., Inc.

4,800

65,616

First Defiance Financial Corp.

2,546

33,098

First Financial Holdings, Inc.

3,500

32,900

First Financial Northwest, Inc.

6,400

50,048

First Financial Service Corp.

1,063

18,507

Flagstar Bancorp., Inc.*

12,550

8,534

Flushing Financial Corp.

7,300

68,255

Fox Chase Bancorp., Inc.*

1,600

15,344

Heritage Financial Group

350

3,000

Home Federal Bancorp., Inc.

5,391

54,934

K-Fed Bancorp.

1,069

9,813

Kearny Financial Corp. (a)

5,796

66,306

Kentucky First Federal Bancorp.

719

8,736

Legacy Bancorp., Inc.

2,224

24,686

Meridian Interstate Bancorp., Inc.*

2,800

20,860

MGIC Investment Corp.

43,057

189,451

NASB Financial, Inc.

1,000

28,600

NewAlliance Bancshares, Inc.

35,900

412,850

Northeast Community Bancorp., Inc.

1,657

13,438

Northwest Bancorp., Inc.

6,000

113,160

OceanFirst Financial Corp.

2,797

33,480

Ocwen Financial Corp.*

12,957

168,052

Oritani Financial Corp.*

3,700

50,727

Provident Financial Services, Inc.

20,037

182,337

Provident New York Bancorp.

11,624

94,387

Prudential Bancorp., Inc. of Pennsylvania

1,086

12,826

Radian Group, Inc.

27,250

74,120

Rockville Financial, Inc.

2,500

27,375

Roma Financial Corp.

2,900

36,946

 


Shares

Value ($)

 

 

The PMI Group, Inc.

25,000

49,500

Tree.com, Inc.*

2,019

19,382

TrustCo Bank Corp.

26,283

155,333

United Financial Bancorp., Inc.

5,500

76,010

ViewPoint Financial Group

3,400

51,782

Waterstone Financial, Inc.*

3,020

8,969

Westfield Financial, Inc. (a)

9,900

89,694

WSFS Financial Corp.

2,200

60,082

 

3,554,625

Health Care 14.9%

Biotechnology 4.0%

Acorda Therapeutics, Inc.*

12,722

358,633

Affymax, Inc.*

4,579

84,391

Alkermes, Inc.*

31,732

343,340

Allos Therapeutics, Inc.*

20,961

173,767

Alnylam Pharmaceuticals, Inc.*

12,084

269,111

Amicus Therapeutics, Inc.*

4,973

56,941

Arena Pharmaceuticals, Inc.*

27,614

137,794

ARIAD Pharmaceuticals, Inc.*

28,618

45,503

ArQule, Inc.*

14,500

89,030

Array BioPharma, Inc.*

15,833

49,716

AVI BioPharma, Inc.*

25,167

39,764

BioCryst Pharmaceuticals, Inc.*

6,971

28,093

Cardium Therapeutics, Inc.*

12,409

22,957

Celera Corp.*

27,580

210,435

Cell Therapeutics, Inc.*

155,019

266,633

Celldex Therapeutics, Inc.* (a)

3,747

29,302

Cepheid, Inc.*

19,970

188,117

Chelsea Therapeutics International Ltd.*

7,764

32,686

Cougar Biotechnology, Inc.*

5,120

219,955

Cubist Pharmaceuticals, Inc.*

19,297

353,714

Curis, Inc.*

20,390

32,420

Cytokinetics, Inc.*

14,310

40,497

Cytori Therapeutics, Inc.* (a)

8,857

31,974

Dyax Corp.*

19,302

41,306

Emergent Biosolutions, Inc.*

5,719

81,953

Enzon Pharmaceuticals, Inc.* (a)

15,131

119,081

Facet Biotech Corp.*

8,139

75,611

Genomic Health, Inc.*

4,741

82,162

Geron Corp.* (a)

29,822

228,735

GTx, Inc.* (a)

6,746

62,266

Halozyme Therapeutics, Inc.* (a)

21,121

147,213

Hemispherx Biopharma, Inc.*

38,323

97,340

Human Genome Sciences, Inc.* (a)

45,600

130,416

Idenix Pharmaceuticals, Inc.*

8,923

32,837

Idera Pharmaceuticals, Inc.*

7,086

41,524

ImmunoGen, Inc.*

17,160

147,748

Immunomedics, Inc.*

20,900

53,086

Incyte Corp.* (a)

24,000

78,960

Infinity Pharmaceuticals, Inc.*

5,685

33,200

Insmed, Inc.*

41,835

41,835

InterMune, Inc.*

12,775

194,180

Isis Pharmaceuticals, Inc.* (a)

31,202

514,833

Lexicon Pharmaceuticals, Inc.*

24,000

29,760

Ligand Pharmaceuticals, Inc. "B"*

37,947

108,528

MannKind Corp.* (a)

18,133

150,685

Martek Biosciences Corp.* (a)

11,129

235,378

Maxygen, Inc.*

9,100

61,152

Medarex, Inc.*

43,157

360,361

Medivation, Inc.*

9,867

221,120

Metabolix, Inc.* (a)

7,000

57,540

Micromet, Inc.*

14,028

69,859

 


Shares

Value ($)

 

 

Molecular Insight Pharmaceuticals, Inc.* (a)

5,200

26,884

Momenta Pharmaceuticals, Inc.*

11,797

141,918

Myriad Pharmaceuticals, Inc.*

9,111

42,366

Nabi Biopharmaceuticals*

19,133

46,302

Nanosphere, Inc.*

3,700

18,167

Neurocrine Biosciences, Inc.*

13,100

42,313

NeurogesX, Inc.*

3,322

18,736

Novavax, Inc.*

21,587

70,805

NPS Pharmaceuticals, Inc.*

15,762

73,451

OncoGenex Pharmaceutical, Inc.*

1,430

31,288

Onyx Pharmaceuticals, Inc.*

19,081

539,229

Opko Health, Inc.* (a)

13,400

23,718

Orexigen Therapeutics, Inc.*

7,500

38,475

Osiris Therapeutics, Inc.* (a)

5,544

74,456

OXiGENE, Inc.*

8,605

18,759

PDL BioPharma, Inc.

40,071

316,561

Pharmasset, Inc.*

6,940

78,075

Poniard Pharmaceuticals, Inc.*

7,511

44,841

Progenics Pharmaceuticals, Inc.*

9,000

46,350

Protalix BioTherapeutics, Inc.*

11,378

51,429

Regeneron Pharmaceuticals, Inc.*

21,124

378,542

Repligen Corp.*

9,600

52,800

Rigel Pharmaceuticals, Inc.*

12,369

149,912

Sangamo BioSciences, Inc.* (a)

13,584

67,105

Savient Pharmaceuticals, Inc.*

20,366

282,273

SciClone Pharmaceuticals, Inc.*

11,399

29,181

Seattle Genetics, Inc.* (a)

24,114

234,388

SIGA Technologies, Inc.*

8,614

72,702

Spectrum Pharmaceuticals, Inc.*

10,858

83,064

StemCells, Inc.*

34,035

57,860

Synta Pharmaceuticals Corp.*

5,100

11,781

Theravance, Inc.*

18,001

263,535

Vanda Pharmaceuticals, Inc.*

18,420

216,803

Vical, Inc.*

10,549

28,588

ZymoGenetics, Inc.*

13,600

62,560

 

10,338,659

Health Care Equipment & Supplies 3.9%

Abaxis, Inc.* (a)

7,589

155,878

ABIOMED, Inc.* (a)

10,300

90,846

Accuray, Inc.*

13,189

87,971

Align Technology, Inc.* (a)

20,000

212,000

Alphatec Holdings, Inc.*

9,553

31,716

American Medical Systems Holdings, Inc.*

24,718

390,544

Analogic Corp.

4,300

158,885

AngioDynamics, Inc.*

8,400

111,468

Aspect Medical Systems, Inc.*

5,536

32,718

Atrion Corp.

492

65,972

ATS Medical, Inc.*

15,355

50,518

Bovie Medical Corp.*

5,521

48,088

Cantel Medical Corp.*

4,200

68,166

Cardiac Science Corp.*

6,312

25,374

Cardiovascular Systems, Inc.*

2,805

21,627

Conceptus, Inc.*

10,250

173,225

CONMED Corp.*

10,068

156,255

CryoLife, Inc.*

9,900

54,846

Cutera, Inc.*

4,245

36,592

Cyberonics, Inc.*

9,261

154,010

Cynosure, Inc. "A"*

3,600

27,540

Delcath Systems, Inc.*

7,259

25,987

Dexcom, Inc.*

15,389

95,258

Electro-Optical Sciences, Inc.*

5,775

44,987

 


Shares

Value ($)

 

 

Endologix, Inc.*

14,308

47,789

EnteroMedics, Inc.*

4,765

15,867

ev3, Inc.*

23,767

254,782

Exactech, Inc.*

2,900

42,050

Greatbatch, Inc.*

7,732

174,821

Haemonetics Corp.*

8,609

490,713

Hansen Medical, Inc.*

8,242

40,715

HeartWare International, Inc.*

1,600

44,656

Home Diagnostics, Inc.*

3,542

21,748

I-Flow Corp.*

7,300

50,662

ICU Medical, Inc.*

4,405

181,266

Immucor, Inc.*

23,661

325,575

Insulet Corp.* (a)

8,639

66,520

Integra LifeSciences Holdings*

6,327

167,729

Invacare Corp.

9,668

170,640

IRIS International, Inc.*

5,900

69,620

Kensey Nash Corp.*

2,700

70,767

MAKO Surgical Corp.*

4,168

37,595

Masimo Corp.*

16,991

409,653

Medical Action Industries, Inc.*

5,100

58,395

Meridian Bioscience, Inc.

13,546

305,869

Merit Medical Systems, Inc.*

9,544

155,567

Micrus Endovascular Corp.*

5,800

52,432

Natus Medical, Inc.*

9,400

108,476

Neogen Corp.*

4,430

128,381

NuVasive, Inc.* (a)

12,184

543,406

NxStage Medical, Inc.*

7,485

44,162

OraSure Technologies, Inc.*

16,342

40,365

Orthofix International NV*

5,900

147,559

Orthovita, Inc.*

22,990

118,398

Palomar Medical Technologies, Inc.*

6,329

92,783

Quidel Corp.*

8,600

125,216

Rochester Medical Corp.*

3,230

43,282

Rockwell Medical Technologies, Inc.*

4,547

34,330

RTI Biologics, Inc.*

17,600

75,504

Sirona Dental Systems, Inc.*

5,649

112,924

Somanetics Corp.*

4,300

70,993

SonoSite, Inc.*

5,928

118,916

Spectranetics Corp.*

11,100

54,723

Stereotaxis, Inc.* (a)

9,450

36,666

STERIS Corp.

19,651

512,498

SurModics, Inc.*

5,144

116,409

Symmetry Medical, Inc.*

11,941

111,290

Synovis Life Technologies, Inc.*

3,900

81,003

Thoratec Corp.*

18,947

507,401

TomoTherapy, Inc.*

15,020

41,305

TranS1, Inc.*

4,130

25,730

Utah Medical Products, Inc.

959

25,615

Vascular Solutions, Inc.*

5,235

40,938

Volcano Corp.*

16,238

227,007

West Pharmaceutical Services, Inc. (a)

10,968

382,235

Wright Medical Group, Inc.*

12,719

206,811

Young Innovations, Inc.

1,729

37,675

Zoll Medical Corp.*

7,058

136,502

 

9,924,405

Health Care Providers & Services 3.7%

Air Methods Corp.*

3,700

101,232

Alliance HealthCare Services, Inc.*

8,624

63,214

Allied Healthcare International, Inc.*

14,314

31,061

Allion Healthcare, Inc.*

6,390

38,021

Almost Family, Inc.* (a)

2,521

65,823

 


Shares

Value ($)

 

 

Amedisys, Inc.*

9,198

303,718

America Service Group, Inc.*

2,655

42,666

American Caresource Holding, Inc.*

3,071

11,486

American Dental Partners, Inc.*

4,113

37,305

AMERIGROUP Corp.*

17,731

476,077

AMN Healthcare Services, Inc.*

10,800

68,904

AmSurg Corp.*

10,300

220,832

Assisted Living Concepts, Inc. "A"*

3,380

49,179

Bio-Reference Laboratories, Inc.*

4,100

129,601

BioScrip, Inc.*

13,912

82,359

Capital Senior Living Corp.*

7,192

32,724

CardioNet, Inc.*

8,231

134,330

Catalyst Health Solutions, Inc.*

12,358

308,209

Centene Corp.*

14,410

287,912

Chemed Corp.

7,578

299,179

Chindex International, Inc.*

4,200

51,954

Clarient, Inc.*

9,648

35,891

Continucare Corp.*

9,074

21,142

CorVel Corp.*

2,450

55,786

Cross Country Healthcare, Inc.*

10,300

70,761

Emergency Medical Services Corp. "A"*

3,309

121,837

Emeritus Corp.*

6,614

87,371

Genoptix, Inc.*

5,625

179,944

Gentiva Health Services, Inc.*

9,731

160,172

Hanger Orthopedic Group, Inc.*

8,843

120,176

Health Grades, Inc.*

7,555

29,540

HEALTHSOUTH Corp.*

29,658

428,262

Healthspring, Inc.*

16,497

179,157

Healthways, Inc.*

11,400

153,330

HMS Holdings Corp.*

8,694

354,020

inVentiv Health, Inc.*

11,233

151,982

IPC The Hospitalist Co.*

5,403

144,206

Kindred Healthcare, Inc.*

13,111

162,183

Landauer, Inc.

3,131

192,056

LCA-Vision, Inc.*

5,151

21,737

LHC Group, Inc.*

5,278

117,224

Magellan Health Services, Inc.*

11,866

389,442

MedCath Corp.*

5,282

62,116

Metropolitan Health Networks, Inc.*

12,654

25,435

Molina Healthcare, Inc.*

4,400

105,248

MWI Veterinary Supply, Inc.*

3,589

125,113

National Healthcare Corp.

2,800

106,232

National Research Corp.

400

9,760

Nighthawk Radiology Holdings, Inc.*

7,773

28,760

NovaMed, Inc.*

6,239

24,644

Odyssey HealthCare, Inc.*

10,952

112,587

Owens & Minor, Inc.

13,988

612,954

PharMerica Corp.*

10,249

201,188

Providence Service Corp.*

3,768

41,260

PSS World Medical, Inc.*

19,911

368,553

Psychiatric Solutions, Inc.*

18,879

429,308

Radnet, Inc.*

9,308

20,943

RehabCare Group, Inc.*

6,300

150,759

Res-Care, Inc.*

8,402

120,149

Skilled Healthcare Group, Inc. "A"*

6,600

49,500

Sun Healthcare Group, Inc.*

14,597

123,199

Sunrise Senior Living, Inc.*

14,827

24,465

The Ensign Group, Inc.

3,567

50,758

Triple-S Management Corp. "B"*

6,843

106,682

Universal American Financial Corp.* (a)

9,552

83,293

US Physical Therapy, Inc.*

3,900

57,525

 


Shares

Value ($)

 

 

Virtual Radiologic Corp.* (a)

2,413

21,789

WellCare Health Plans, Inc.*

14,196

262,484

 

9,336,709

Health Care Technology 0.8%

AMICAS, Inc.*

11,146

30,986

athenahealth, Inc.*

11,272

417,177

Computer Programs & Systems, Inc.

3,300

126,423

Eclipsys Corp.*

18,872

335,544

MedAssets, Inc.*

13,198

256,701

MedQuist, Inc.

2,760

16,781

Merge Healthcare, Inc.*

8,436

36,275

Omnicell, Inc.*

10,700

115,025

Phase Forward, Inc.*

14,532

219,579

Quality Systems, Inc. (a)

7,887

449,243

Transcend Services, Inc.*

1,972

31,256

Vital Images, Inc.*

4,800

54,480

 

2,089,470

Life Sciences Tools & Services 1.1%

Accelrys, Inc.*

8,800

52,008

Affymetrix, Inc.*

23,747

140,820

Albany Molecular Research, Inc.*

7,400

62,086

AMAG Pharmaceuticals, Inc.*

5,741

313,861

BioDelivery Sciences International, Inc.*

2,940

19,610

Bruker Corp.*

16,884

156,346

Cambrex Corp.*

10,303

42,448

Clinical Data, Inc.*

3,500

38,570

Dionex Corp.*

5,880

358,856

Enzo Biochem, Inc.* (a)

10,773

47,724

eResearchTechnology, Inc.*

14,300

88,803

Exelixis, Inc.* (a)

36,670

178,583

Harvard Bioscience, Inc.*

7,721

30,498

Kendle International, Inc.*

5,212

63,795

Life Sciences Research, Inc.*

3,200

22,944

Luminex Corp.*

13,910

257,891

Nektar Therapeutics* (a)

31,000

200,880

PAREXEL International Corp.*

19,311

277,692

Sequenom, Inc.* (a)

20,570

80,429

Varian, Inc.*

9,696

382,313

 

2,816,157

Pharmaceuticals 1.4%

Acura Pharmaceuticals, Inc.* (a)

2,300

13,754

Adolor Corp.*

17,000

29,920

Akorn, Inc.*

17,000

20,400

Ardea Biosciences, Inc.*

4,720

74,293

ARYx Therapeutics, Inc.*

6,769

27,956

Auxilium Pharmaceuticals, Inc.* (a)

14,325

449,518

AVANIR Pharmaceuticals, Inc. "A"*

19,980

44,356

Biodel, Inc.*

4,905

25,310

BioMimetic Therapeutics, Inc.* (a)

4,737

43,770

BioSpecifics Technologies Corp.*

1,133

26,999

BMP Sunstone Corp.*

10,642

50,443

Cadence Pharmaceuticals, Inc.*

8,400

83,916

Caraco Pharmaceutical Laboratories Ltd.*

3,300

10,131

Cornerstone Therapeutics, Inc.*

2,025

22,235

Cypress Bioscience, Inc.*

13,200

124,344

DepoMed, Inc.*

16,100

52,325

Discovery Laboratories, Inc.*

39,186

40,362

Durect Corp.* (a)

26,400

62,832

Hi-Tech Pharmacal Co., Inc.*

2,511

22,348

Impax Laboratories, Inc.*

20,384

150,026

Inspire Pharmaceuticals, Inc.*

14,200

78,952

 


Shares

Value ($)

 

 

Ista Pharmaceuticals, Inc.*

10,931

45,910

Javelin Pharmaceuticals, Inc.* (a)

14,900

18,327

K-V Pharmaceutical Co. "A"*

12,950

41,570

Lannett Co., Inc.*

3,149

21,571

MAP Pharmaceuticals, Inc.*

2,708

33,092

Matrixx Initiatives, Inc.*

3,744

20,929

Medicines Co.*

18,183

152,555

Medicis Pharmaceutical Corp. "A"

19,716

321,765

MiddleBrook Pharmaceuticals, Inc.*

14,000

18,900

Noven Pharmaceuticals, Inc.*

8,500

121,550

Obagi Medical Products, Inc.*

5,800

42,282

Optimer Pharmaceuticals, Inc.*

9,620

144,011

Pain Therapeutics, Inc.*

12,000

64,440

Par Pharmaceutical Companies, Inc.*

12,008

181,921

POZEN, Inc.*

8,900

68,352

Questcor Pharmaceuticals, Inc.*

19,107

95,535

Repros Therapeutics, Inc.*

2,944

21,167

Salix Pharmaceuticals Ltd.*

16,550

163,348

Santarus, Inc.*

16,933

47,751

Sucampo Pharmaceuticals, Inc. "A"*

3,421

21,108

SuperGen, Inc.*

19,104

38,399

ViroPharma, Inc.*

26,671

158,159

VIVUS, Inc.*

24,000

145,920

XenoPort, Inc.*

9,202

213,210

 

3,655,962

Industrials 15.7%

Aerospace & Defense 1.8%

AAR Corp.*

13,009

208,794

Aerovironment, Inc.*

4,432

136,772

American Science & Engineering, Inc.

3,048

210,678

Applied Signal Technology, Inc.

4,301

109,719

Argon ST, Inc.*

4,683

96,329

Ascent Solar Technologies, Inc.* (a)

5,087

39,780

Astronics Corp.*

2,973

30,890

Axsys Technologies, Inc.*

3,214

172,399

Ceradyne, Inc.*

8,575

151,435

Cubic Corp.

5,372

192,264

Curtiss-Wright Corp.

15,121

449,547

DigitalGlobe, Inc.*

5,165

99,168

Ducommun, Inc.

3,300

62,007

DynCorp International, Inc. "A"*

8,600

144,394

Esterline Technologies Corp.*

9,930

268,805

GenCorp, Inc.*

18,583

35,494

HEICO Corp.

7,797

282,719

Herley Industries, Inc.*

4,387

48,125

Hexcel Corp.*

32,383

308,610

Ladish Co., Inc.*

5,400

70,038

LMI Aerospace, Inc.*

2,600

26,312

Moog, Inc. "A"*

14,379

371,122

Orbital Sciences Corp.*

18,960

287,623

Stanley, Inc.*

4,005

131,684

Taser International, Inc.*

21,700

98,952

Teledyne Technologies, Inc.*

12,059

394,932

Todd Shipyards Corp.

1,795

29,887

Triumph Group, Inc.

5,606

224,240

 

4,682,719

Air Freight & Logistics 0.3%

Air Transport Services Group, Inc.*

18,361

42,598

Atlas Air Worldwide Holdings, Inc.*

5,727

132,809

Dynamex, Inc.*

3,157

48,586

Forward Air Corp.

9,737

207,593

Hub Group, Inc. "A"*

12,532

258,660

 


Shares

Value ($)

 

 

Pacer International, Inc.

11,700

26,091

 

716,337

Airlines 0.6%

AirTran Holdings, Inc.* (a)

40,271

249,277

Alaska Air Group, Inc.*

12,241

223,521

Allegiant Travel Co.* (a)

5,294

209,854

Hawaiian Holdings, Inc.*

17,208

103,592

JetBlue Airways Corp.*

77,236

329,798

Republic Airways Holdings, Inc.*

11,579

75,611

SkyWest, Inc.

18,700

190,740

UAL Corp.* (a)

49,684

158,492

US Airways Group, Inc.*

45,610

110,832

 

1,651,717

Building Products 0.6%

AAON, Inc.

4,153

82,728

American Woodmark Corp.

3,400

81,430

Ameron International Corp.

3,086

206,886

Apogee Enterprises, Inc.

9,343

114,919

Builders FirstSource, Inc.* (a)

4,500

18,720

Gibraltar Industries, Inc.

9,350

64,235

Griffon Corp.*

14,598

121,455

Insteel Industries, Inc.

6,400

52,736

NCI Building Systems, Inc.* (a)

5,900

15,576

Quanex Building Products Corp.

12,620

141,596

Simpson Manufacturing Co., Inc.

12,800

276,736

Trex Co., Inc.*

5,400

72,198

Universal Forest Products, Inc.

6,458

213,695

 

1,462,910

Commercial Services & Supplies 2.6%

ABM Industries, Inc.

15,423

278,694

Acco Brands Corp.*

18,195

51,310

American Ecology Corp.

6,031

108,076

American Reprographics Co.*

12,149

101,080

AMREP Corp.*

800

8,824

APAC Customer Services, Inc.*

8,339

42,779

ATC Technology Corp.*

6,700

97,150

Bowne & Co., Inc.

9,880

64,319

Cenveo, Inc.* (a)

15,962

67,519

Clean Harbors, Inc.*

6,803

367,294

Comfort Systems USA, Inc.

13,425

137,606

Consolidated Graphics, Inc.*

3,300

57,486

Cornell Companies, Inc.*

4,000

64,840

Courier Corp.

3,250

49,595

Deluxe Corp.

17,223

220,627

EnergySolutions

25,503

234,628

EnerNOC, Inc.* (a)

3,960

85,813

Ennis, Inc.

8,596

107,106

Fuel Tech, Inc.* (a)

5,900

57,230

G & K Services, Inc. "A"

6,172

130,538

GeoEye, Inc.* (a)

6,222

146,590

Healthcare Services Group, Inc.

14,530

259,796

Heritage-Crystal Clean, Inc.*

637

7,740

Herman Miller, Inc.

18,000

276,120

HNI Corp.

15,032

271,478

ICT Group, Inc.*

3,400

29,682

Innerworkings, Inc.*

8,691

41,282

Interface, Inc. "A"

17,041

105,654

Kimball International, Inc. "B"

10,100

63,024

Knoll, Inc.

16,341

123,865

M&F Worldwide Corp.*

3,600

72,000

McGrath Rentcorp.

8,200

156,292

Metalico, Inc.*

8,400

39,144

Mine Safety Appliances Co.

8,948

215,647

 


Shares

Value ($)

 

 

Mobile Mini, Inc.*

12,251

179,722

Multi-Color Corp.

3,300

40,458

North American Galvanizing & Coatings, Inc.*

4,004

24,264

Perma-Fix Environmental Services, Inc.*

17,632

42,669

Rollins, Inc.

14,773

255,721

Schawk, Inc.

4,900

36,799

Standard Parking Corp.*

2,377

38,721

Standard Register Co.

5,456

17,787

Steelcase, Inc. "A"

24,798

144,324

Sykes Enterprises, Inc.*

11,635

210,477

Team, Inc.*

6,547

102,591

Tetra Tech, Inc.*

20,235

579,733

The Geo Group, Inc.*

17,169

319,000

United Stationers, Inc.*

8,051

280,819

Viad Corp.

6,881

118,491

Waste Services, Inc.*

6,668

34,540

 

6,566,944

Construction & Engineering 0.9%

Argan, Inc.*

2,332

32,951

Dycom Industries, Inc.*

13,474

149,157

EMCOR Group, Inc.*

22,097

444,592

Furmanite Corp.*

12,033

53,667

Granite Construction, Inc. (a)

11,463

381,489

Great Lakes Dredge & Dock Co.

13,297

63,560

Insituform Technologies, Inc. "A"*

13,386

227,160

Integrated Electrical Services, Inc.*

2,254

17,604

Layne Christensen Co.*

6,738

137,792

MasTec, Inc.*

17,933

210,175

Michael Baker Corp.*

2,729

115,600

MYR Group, Inc.*

5,980

120,916

Northwest Pipe Co.*

3,200

111,232

Orion Marine Group, Inc.*

7,400

140,600

Pike Electric Corp.*

5,308

63,961

Sterling Construction Co., Inc.*

4,300

65,618

Tutor Perini Corp.*

1,268

22,012

 

2,358,086

Electrical Equipment 2.3%

A.O. Smith Corp. (a)

7,388

240,627

Acuity Brands, Inc. (a)

13,735

385,267

Advanced Battery Technologies, Inc.* (a)

15,400

61,908

American Superconductor Corp.* (a)

14,578

382,673

AZZ, Inc.*

4,216

145,073

Baldor Electric Co. (a)

15,579

370,624

Belden, Inc.

15,616

260,787

Brady Corp. "A"

16,100

404,432

Broadwind Energy, Inc.*

10,474

118,566

Chase Corp.

1,840

21,896

China BAK Battery, Inc.*

11,800

34,810

Encore Wire Corp.

6,127

130,811

Ener1, Inc.* (a)

15,938

87,021

Energy Conversion Devices, Inc.* (a)

15,310

216,637

EnerSys*

13,675

248,748

Evergreen Solar, Inc.* (a)

64,608

140,199

Franklin Electric Co., Inc.

7,800

202,176

FuelCell Energy, Inc.* (a)

21,900

91,542

Fushi Copperweld, Inc.*

5,100

42,177

GrafTech International Ltd.*

40,388

456,788

GT Solar International, Inc.* (a)

10,371

55,174

Harbin Electric, Inc.* (a)

3,716

58,118

II-VI, Inc.*

8,500

188,445

 


Shares

Value ($)

 

 

LaBarge, Inc.*

4,103

38,035

LSI Industries, Inc.

6,275

34,199

Microvision, Inc.* (a)

22,519

69,133

Orion Energy Systems, Inc.* (a)

5,446

20,423

Polypore International, Inc.*

7,565

84,123

Powell Industries, Inc.*

2,711

100,497

Power-One, Inc.* (a)

24,952

37,178

PowerSecure International, Inc.*

5,412

23,055

Preformed Line Products Co.

800

35,248

Regal-Beloit Corp. (a)

11,996

476,481

SatCon Technology Corp.*

16,612

29,902

Ultralife Corp.*

4,000

28,680

Valence Technology, Inc.*

16,500

29,535

Vicor Corp.

6,305

45,522

Woodward Governor Co.

20,171

399,386

 

5,795,896

Industrial Conglomerates 0.3%

Otter Tail Corp.

11,928

260,508

Raven Industries, Inc.

5,400

138,240

Seaboard Corp.

109

122,298

Standex International Corp.

4,008

46,493

Tredegar Corp.

9,870

131,468

United Capital Corp.*

400

7,328

 

706,335

Machinery 2.7%

3D Systems Corp.*

5,900

42,539

Actuant Corp. "A"

19,039

232,276

Alamo Group, Inc.

1,800

18,180

Albany International Corp. "A"

9,452

107,564

Altra Holdings, Inc.*

9,300

69,657

American Railcar Industries, Inc.

3,400

28,084

Ampco-Pittsburgh Corp.

3,000

70,350

Astec Industries, Inc.*

6,067

180,129

Badger Meter, Inc.

4,988

204,508

Barnes Group, Inc.

15,600

185,484

Blount International, Inc.*

12,802

110,225

Briggs & Stratton Corp.

16,900

225,446

Cascade Corp.

2,953

46,451

Chart Industries, Inc.*

9,500

172,710

China Fire & Security Group, Inc.*

4,594

55,909

CIRCOR International, Inc.

5,679

134,081

CLARCOR, Inc.

17,078

498,507

Colfax Corp.*

7,500

57,900

Columbus McKinnon Corp.*

6,600

83,490

Dynamic Materials Corp.

4,500

86,760

Energy Recovery, Inc.* (a)

11,064

78,333

EnPro Industries, Inc.*

6,600

118,866

ESCO Technologies, Inc.*

8,799

394,195

Federal Signal Corp.

16,269

124,458

Flanders Corp.*

5,240

32,016

Flow International Corp.*

11,800

27,730

Force Protection, Inc.*

24,030

212,425

FreightCar America, Inc.

4,189

70,417

Gorman-Rupp Co.

4,757

95,949

Graham Corp.

3,600

47,880

Greenbrier Companies, Inc.

5,459

39,250

Hurco Companies, Inc.*

2,400

37,512

John Bean Technologies Corp.

9,203

115,222

K-Tron International, Inc.*

800

63,744

Kadant, Inc.*

4,480

50,579

Kaydon Corp.

11,190

364,346

L.B. Foster Co. "A"*

3,400

102,238

Lindsay Corp. (a)

4,150

137,365

 


Shares

Value ($)

 

 

Met-Pro Corp.

4,600

49,772

Middleby Corp.* (a)

5,427

238,354

Miller Industries, Inc.*

3,148

27,702

Mueller Industries, Inc.

12,497

259,938

Mueller Water Products, Inc. "A"

38,954

145,688

NACCO Industries, Inc. "A"

1,925

55,286

Nordson Corp.

11,237

434,422

Omega Flex, Inc.

800

12,128

PMFG, Inc.*

4,000

35,240

Portec Rail Products, Inc.

2,033

20,025

RBC Bearings, Inc.*

7,245

148,160

Robbins & Myers, Inc.

8,900

171,325

Sauer-Danfoss, Inc.

4,188

25,673

Sun Hydraulics Corp. (a)

4,050

65,489

Tecumseh Products Co. "A"*

6,121

59,435

Tennant Co.

6,217

114,331

The Eastern Co.

1,890

31,185

Titan International, Inc. (a)

12,241

91,440

TriMas Corp.*

4,790

16,142

Twin Disc, Inc.

3,300

22,473

Watts Water Technologies, Inc. "A"

9,801

211,114

 

6,958,097

Marine 0.2%

American Commercial Lines, Inc.*

2,968

45,945

Eagle Bulk Shipping, Inc. (a)

16,400

76,916

Genco Shipping & Trading Ltd.

8,866

192,570

Horizon Lines, Inc. "A"

9,164

35,373

International Shipholding Corp.

1,844

49,714

TBS International Ltd. "A"*

4,352

33,989

Ultrapetrol Bahamas Ltd.*

7,200

31,896

 

466,403

Professional Services 1.6%

Acacia Research*

10,598

83,406

Administaff, Inc.

7,280

169,406

Barrett Business Services, Inc.

2,358

24,759

CBIZ, Inc.*

14,728

104,863

CDI Corp.

3,926

43,775

COMSYS IT Partners, Inc.*

5,274

30,853

Corporate Executive Board Co.

11,467

238,055

CoStar Group, Inc.*

6,656

265,375

CRA International, Inc.*

3,700

102,712

Diamond Management & Technology Consultants, Inc.

7,599

31,916

Exponent, Inc.*

4,800

117,648

First Advantage Corp. "A"*

3,300

50,193

Franklin Covey Co.*

4,046

25,207

GP Strategies Corp.*

4,947

29,138

Heidrick & Struggles International, Inc.

5,644

103,003

Hill International, Inc.*

7,997

34,387

Huron Consulting Group, Inc.*

7,194

332,579

ICF International, Inc.*

2,898

79,956

Kelly Services, Inc. "A"

9,200

100,740

Kforce, Inc.*

10,000

82,700

Korn/Ferry International*

15,465

164,548

MPS Group, Inc.*

31,016

236,962

Navigant Consulting, Inc.*

16,774

216,720

Odyssey Marine Exploration, Inc.* (a)

16,500

26,400

On Assignment, Inc.*

13,300

52,003

Resources Connection, Inc.*

15,161

260,314

School Specialty, Inc.*

6,500

131,365

Spherion Corp.*

18,043

74,337

The Advisory Board Co.*

5,205

133,768

 


Shares

Value ($)

 

 

TrueBlue, Inc.*

15,211

127,772

Volt Information Sciences, Inc.*

4,400

27,588

VSE Corp.

1,200

31,392

Watson Wyatt Worldwide, Inc. "A"

14,297

536,566

 

4,070,406

Road & Rail 1.0%

AMERCO*

3,000

111,450

Arkansas Best Corp.

8,524

224,607

Avis Budget Group, Inc.*

34,934

197,377

Celadon Group, Inc.*

7,400

62,086

Dollar Thrifty Automotive Group, Inc.*

7,500

104,625

Genesee & Wyoming, Inc. "A"*

10,989

291,318

Heartland Express, Inc. (a)

16,881

248,488

Knight Transportation, Inc.

19,192

317,628

Marten Transport Ltd.*

5,083

105,523

Old Dominion Freight Line, Inc.*

9,382

314,954

Patriot Transportation Holding, Inc.*

400

29,172

Saia, Inc.*

4,549

81,927

Universal Truckload Services, Inc.

2,210

34,587

USA Truck, Inc.*

2,424

32,797

Werner Enterprises, Inc. (a)

14,300

259,116

YRC Worldwide, Inc.* (a)

18,500

32,005

 

2,447,660

Trading Companies & Distributors 0.8%

Aceto Corp.

8,081

53,900

Aircastle Ltd.

16,279

119,651

Applied Industrial Technologies, Inc.

14,250

280,725

Beacon Roofing Supply, Inc.*

15,148

219,040

BlueLinx Holdings, Inc.*

3,450

10,350

DXP Enterprises, Inc.*

2,600

29,822

H&E Equipment Services, Inc.*

9,547

89,264

Houston Wire & Cable Co.

5,900

70,269

Interline Brands, Inc.*

10,875

148,770

Kaman Corp.

8,700

145,290

Lawson Products, Inc.

1,100

15,631

RSC Holdings, Inc.* (a)

16,994

114,200

Rush Enterprises, Inc. "A"*

11,140

129,781

TAL International Group, Inc.

4,924

53,672

Textainer Group Holdings Ltd.

2,700

31,023

Titan Machinery, Inc.*

4,470

56,724

United Rentals, Inc.*

20,784

134,888

Watsco, Inc.

8,002

391,538

Willis Lease Finance Corp.*

1,424

18,683

 

2,113,221

Transportation Infrastructure 0.0%

CAI International, Inc.*

2,942

15,004

Information Technology 19.5%

Communications Equipment 3.7%

3Com Corp.*

129,999

612,295

Acme Packet, Inc.*

13,023

131,793

ADC Telecommunications, Inc.*

32,381

257,753

ADTRAN, Inc.

18,506

397,324

Airvana, Inc.*

8,143

51,871

Anaren, Inc.*

4,870

86,102

Arris Group, Inc.*

41,634

506,269

Aruba Networks, Inc.*

19,880

173,751

Avocent Corp.*

14,892

207,892

Bel Fuse, Inc. "B"

3,688

59,155

BigBand Networks, Inc.*

12,600

65,142

Black Box Corp.

5,874

196,603

Blue Coat Systems, Inc.*

13,277

219,602

Cogo Group, Inc.*

8,600

51,342

 


Shares

Value ($)

 

 

Communications Systems, Inc.

1,771

17,356

Comtech Telecommunications Corp.*

9,466

301,776

DG Fastchannel, Inc.*

6,313

115,528

Digi International, Inc.*

8,000

78,000

EMCORE Corp.*

24,473

30,836

EMS Technologies, Inc.*

5,000

104,500

Emulex Corp.*

27,851

272,383

Extreme Networks, Inc.*

29,800

59,600

Globecomm Systems, Inc.*

6,761

48,612

Harmonic, Inc.*

32,937

193,999

Harris Stratex Networks, Inc. "A"*

20,400

132,192

Hughes Communications, Inc.*

2,928

66,846

Infinera Corp.*

28,164

257,137

InterDigital, Inc.*

14,700

359,268

Ixia*

11,211

75,562

KVH Industries, Inc.*

4,433

30,277

Loral Space & Communications, Inc.*

3,722

95,841

NETGEAR, Inc.*

11,500

165,715

Network Equipment Technologies, Inc.*

9,355

39,852

Oplink Communications, Inc.*

7,250

82,650

OpNext, Inc.*

7,700

16,478

Palm, Inc.* (a)

46,292

767,058

ParkerVision, Inc.* (a)

9,458

28,941

PC-Tel, Inc.*

7,100

37,985

Plantronics, Inc.

16,405

310,219

Polycom, Inc.* (a)

28,158

570,763

Powerwave Technologies, Inc.*

43,894

70,669

Riverbed Technology, Inc.* (a)

18,342

425,351

SeaChange International, Inc.*

11,000

88,330

ShoreTel, Inc.*

14,764

118,112

Sonus Networks, Inc.*

68,918

110,958

Starent Networks Corp.*

13,138

320,699

Sycamore Networks, Inc.*

64,621

202,264

Symmetricom, Inc.*

15,100

87,127

Tekelec*

22,291

375,158

UTStarcom, Inc.*

37,400

60,962

ViaSat, Inc.*

8,800

225,632

 

9,361,530

Computers & Peripherals 1.1%

3PAR, Inc.*

9,155

113,522

ActivIdentity Corp.*

14,590

36,913

Adaptec, Inc.*

40,600

107,590

Avid Technology, Inc.*

9,800

131,418

Compellent Technologies, Inc.*

5,572

84,973

Cray, Inc.*

11,900

93,772

Data Domain, Inc.*

15,908

530,532

Electronics for Imaging, Inc.*

16,500

175,890

Imation Corp.

9,500

72,295

Immersion Corp.*

10,400

51,376

Intermec, Inc.*

20,908

269,713

Intevac, Inc.*

7,800

67,938

Isilon Systems, Inc.*

8,304

35,209

Netezza Corp.*

15,794

131,406

Novatel Wireless, Inc.*

10,200

92,004

Quantum Corp.*

66,100

54,863

Rimage Corp.*

3,137

52,105

Silicon Graphics International Corp.*

10,300

46,762

STEC, Inc.* (a)

8,518

197,532

Stratasys, Inc.*

6,700

73,633

Super Micro Computer, Inc.*

7,200

55,152

 


Shares

Value ($)

 

 

Synaptics, Inc.* (a)

11,544

446,176

 

2,920,774

Electronic Equipment, Instruments & Components 2.1%

Agilysys, Inc.

5,675

26,559

Anixter International, Inc.*

10,025

376,840

Benchmark Electronics, Inc.*

21,869

314,914

Brightpoint, Inc.*

16,673

104,540

Checkpoint Systems, Inc.*

13,069

205,053

China Security & Surveillance Technology, Inc.*

10,899

82,178

Cogent, Inc.*

14,321

153,664

Cognex Corp.

13,300

187,929

Coherent, Inc.*

7,300

150,964

Comverge, Inc.*

6,718

81,288

CPI International, Inc.*

2,800

24,332

CTS Corp.

12,090

79,189

Daktronics, Inc.

11,000

84,700

DDi Corp.*

4,353

19,719

DTS, Inc.*

5,961

161,364

Echelon Corp.* (a)

10,790

91,499

Electro Rent Corp.

6,400

60,736

Electro Scientific Industries, Inc.*

9,556

106,836

FARO Technologies, Inc.*

5,800

90,074

ICx Technologies, Inc.*

3,800

22,800

Insight Enterprises, Inc.*

15,362

148,397

IPG Photonics Corp.*

7,645

83,866

L-1 Identity Solutions, Inc.*

25,196

195,017

Littelfuse, Inc.*

7,286

145,428

Maxwell Technologies, Inc.*

7,476

103,393

Measurement Specialties, Inc.*

4,637

32,691

Mercury Computer Systems, Inc.*

7,527

69,625

Methode Electronics, Inc. "A"

12,556

88,143

MTS Systems Corp.

5,600

115,640

Multi-Fineline Electronix, Inc.*

3,238

69,293

Newport Corp.*

11,900

68,901

OSI Systems, Inc.*

5,100

106,335

PAR Technology Corp.*

2,464

15,745

Park Electrochemical Corp.

6,787

146,124

PC Connection, Inc.*

2,400

12,600

PC Mall, Inc.*

3,500

23,660

Plexus Corp.*

13,256

271,218

RadiSys Corp.*

7,474

67,341

RAE Systems, Inc.*

12,612

17,405

Rofin-Sinar Technologies, Inc.*

9,700

194,097

Rogers Corp.*

5,200

105,196

ScanSource, Inc.* (a)

8,921

218,743

Smart Modular Technologies (WWH), Inc.*

13,400

30,418

Spectrum Control, Inc.*

4,034

35,499

SYNNEX Corp.*

6,452

161,235

Technitrol, Inc.

13,727

88,814

TTM Technologies, Inc.*

14,700

117,012

Universal Display Corp.*

9,815

95,991

X-Rite, Inc.*

7,808

11,712

Zygo Corp.*

4,200

19,572

 

5,284,289

Internet Software & Services 2.3%

Art Technology Group, Inc.*

42,100

159,980

Bankrate, Inc.* (a)

4,300

108,532

comScore, Inc.*

7,210

96,037

Constant Contact, Inc.*

8,032

159,355

DealerTrack Holdings, Inc.*

12,600

214,200

Dice Holdings, Inc.*

5,000

23,250

 


Shares

Value ($)

 

 

Digital River, Inc.*

12,773

463,915

DivX, Inc.*

10,606

58,227

EarthLink, Inc.*

35,500

263,055

GSI Commerce, Inc.*

8,598

122,521

Imergent, Inc.

2,421

16,947

InfoSpace, Inc.*

12,100

80,223

Innodata Isogen, Inc.*

6,834

29,933

Internap Network Services Corp.*

17,930

62,576

Internet Brands, Inc. "A"*

9,030

63,210

Internet Capital Group, Inc.*

12,300

82,779

iPass, Inc.*

15,942

25,507

j2 Global Communications, Inc.*

15,015

338,738

Keynote Systems, Inc.*

4,200

32,088

Limelight Networks, Inc.*

10,780

47,432

Liquidity Services, Inc.*

5,500

54,230

LivePerson, Inc.*

13,480

53,920

LoopNet, Inc.*

7,185

55,684

Marchex, Inc. "B"

6,600

22,242

MercadoLibre, Inc.*

8,667

232,969

ModusLink Global Solutions, Inc.*

15,310

105,027

Move, Inc.*

51,757

111,795

NIC, Inc.

16,841

114,014

Omniture, Inc.* (a)

22,675

284,798

OpenTable, Inc.*

1,095

33,036

Openwave Systems, Inc.*

27,507

61,616

Perficient, Inc.*

9,600

67,104

Rackspace Hosting, Inc.*

22,277

308,759

RealNetworks, Inc.*

28,600

85,514

Saba Software, Inc.*

7,942

30,577

SAVVIS, Inc.*

12,000

137,520

Support.com, Inc.

13,900

30,302

Switch & Data Facilities Co.*

6,600

77,418

TechTarget, Inc.* (a)

3,400

13,600

Terremark Worldwide, Inc.*

17,928

103,624

The Knot, Inc.*

10,300

81,164

Travelzoo, Inc.*

1,743

19,086

United Online, Inc.

28,237

183,823

ValueClick, Inc.*

29,141

306,563

Vignette Corp.*

7,940

104,411

VistaPrint Ltd.*

14,174

604,521

Vocus, Inc.*

5,600

110,656

Web.com Group, Inc.*

8,900

50,107

Zix Corp.*

20,485

30,727

 

5,923,312

IT Services 2.3%

Acxiom Corp.

22,769

201,050

CACI International, Inc. "A"*

9,996

426,929

Cass Information Systems, Inc.

2,724

89,184

China Information Security Technology, Inc.*

8,580

24,539

CIBER, Inc.*

22,658

70,240

Computer Task Group, Inc.*

4,676

28,524

CSG Systems International, Inc.*

11,723

155,213

CyberSource Corp.*

23,185

354,730

eLoyalty Corp.*

2,008

15,823

Euronet Worldwide, Inc.*

16,293

315,921

Exlservice Holdings, Inc.*

5,300

59,413

Forrester Research, Inc.*

5,200

127,660

Gartner, Inc.*

19,862

303,094

Global Cash Access Holdings, Inc.*

13,514

107,571

Heartland Payment Systems, Inc.

12,530

119,912

iGATE Corp.

7,431

49,193

infoGROUP, Inc.*

11,299

64,517

 


Shares

Value ($)

 

 

Information Services Group, Inc.*

7,395

22,259

Integral Systems, Inc.*

6,270

52,166

Lionbridge Technologies, Inc.*

18,628

34,276

ManTech International Corp. "A"*

7,340

315,914

MAXIMUS, Inc.

5,854

241,478

MoneyGram International, Inc.*

26,867

47,823

NCI, Inc. "A"*

2,328

70,818

Ness Technologies, Inc.*

14,100

55,131

Online Resources Corp.*

8,500

53,040

Perot Systems Corp. "A"*

29,290

419,726

RightNow Technologies, Inc.*

7,620

89,916

Sapient Corp.*

28,286

177,919

SRA International, Inc. "A"*

13,900

244,084

StarTek, Inc.*

3,805

30,516

Syntel, Inc. (a)

4,270

134,249

TeleTech Holdings, Inc.*

10,888

164,953

The Hackett Group, Inc.*

12,400

28,892

Tier Technologies, Inc. "B"*

5,650

43,392

TNS, Inc.*

8,684

162,825

Unisys Corp.*

250,254

377,884

VeriFone Holdings, Inc.*

24,829

186,466

Virtusa Corp.*

4,203

33,750

Wright Express Corp.*

12,871

327,824

 

5,828,814

Semiconductors & Semiconductor Equipment 3.5%

Actel Corp.*

9,068

97,300

Advanced Analogic Technologies, Inc.*

15,554

71,393

Advanced Energy Industries, Inc.*

10,982

98,728

Amkor Technology, Inc.*

37,681

178,231

ANADIGICS, Inc.*

21,044

88,174

Applied Micro Circuits Corp.*

22,088

179,575

Atheros Communications*

20,454

393,535

ATMI, Inc.*

10,506

163,158

Brooks Automation, Inc.*

21,546

96,526

Cabot Microelectronics Corp.*

7,856

222,246

Cavium Networks, Inc.*

12,113

203,620

CEVA, Inc.*

6,200

53,816

Cirrus Logic, Inc.*

23,000

103,500

Cohu, Inc.

7,483

67,197

Cymer, Inc.*

9,940

295,516

Diodes, Inc.*

10,706

167,442

DSP Group, Inc.*

7,600

51,376

Entegris, Inc.*

38,060

103,523

Entropic Communications, Inc.*

17,405

39,161

Exar Corp.*

11,876

85,388

FEI Co.*

12,570

287,853

FormFactor, Inc.*

16,591

286,029

GSI Technology, Inc.*

5,571

21,504

Hittite Microwave Corp.*

7,193

249,957

Intellon Corp.*

6,869

29,193

IXYS Corp.

7,900

79,948

Kopin Corp.*

21,800

80,006

Kulicke & Soffa Industries, Inc.*

20,382

69,910

Lattice Semiconductor Corp.*

40,700

76,516

MEMSIC, Inc.*

4,655

19,737

Micrel, Inc.

15,100

110,532

Microsemi Corp.*

27,288

376,574

Microtune, Inc.*

16,500

38,610

MIPS Technologies, Inc.*

16,000

48,000

MKS Instruments, Inc.*

16,557

218,387

Monolithic Power Systems, Inc.*

11,355

254,466

Netlogic Microsystems, Inc.* (a)

6,033

219,963

 


Shares

Value ($)

 

 

NVE Corp.*

1,653

80,336

OmniVision Technologies, Inc.*

16,841

174,978

Pericom Semiconductor Corp.*

8,200

69,044

Photronics, Inc.*

13,946

56,481

PLX Technology, Inc.*

10,985

41,413

Power Integrations, Inc.

7,995

190,201

RF Micro Devices, Inc.*

89,189

335,351

Rubicon Technology, Inc.*

4,200

59,976

Rudolph Technologies, Inc.*

10,155

56,056

Semitool, Inc.*

7,200

33,264

Semtech Corp.*

20,443

325,248

Sigma Designs, Inc.* (a)

8,939

143,382

Silicon Image, Inc.*

25,100

57,730

Silicon Storage Technology, Inc.*

28,000

52,360

Skyworks Solutions, Inc.*

56,206

549,695

Standard Microsystems Corp.*

7,261

148,488

Supertex, Inc.*

3,648

91,601

Techwell, Inc.*

5,800

49,300

Tessera Technologies, Inc.*

16,269

411,443

Trident Microsystems, Inc.*

22,400

38,976

TriQuint Semiconductor, Inc.*

49,970

265,341

Ultratech, Inc.*

7,928

97,594

Veeco Instruments, Inc.*

11,100

128,649

Virage Logic Corp.*

4,937

22,217

Volterra Semiconductor Corp.*

7,600

99,864

White Electronic Designs Corp.*

7,034

32,567

Zoran Corp.*

17,375

189,388

 

9,027,533

Software 4.5%

ACI Worldwide, Inc.*

11,732

163,779

Actuate Corp.*

14,800

70,744

Advent Software, Inc.*

5,100

167,229

American Software, Inc. "A"

6,800

39,168

ArcSight, Inc.*

6,375

113,284

Ariba, Inc.*

29,329

288,597

AsiaInfo Holdings, Inc.* (a)

9,788

168,451

Blackbaud, Inc.

14,982

232,970

Blackboard, Inc.*

10,674

308,052

Bottomline Technologies, Inc.*

8,300

74,783

Callidus Software, Inc.*

9,100

25,935

Chordiant Software, Inc.*

11,380

41,309

Commvault Systems, Inc.*

14,000

232,120

Concur Technologies, Inc.* (a)

13,358

415,167

Deltek, Inc.* (a)

4,720

20,485

DemandTec, Inc.*

6,500

57,200

Double-Take Software, Inc.*

6,200

53,630

Dynamics Research Corp.*

2,685

26,877

Ebix, Inc.*

2,234

69,969

Entrust, Inc.*

18,300

33,123

Epicor Software Corp.*

16,615

88,059

EPIQ Systems, Inc.* (a)

10,800

165,780

ePlus, Inc.*

1,066

15,532

Fair Isaac Corp. (a)

16,426

253,946

FalconStor Software, Inc.*

12,193

57,917

GSE Systems, Inc.*

5,077

34,270

i2 Technologies, Inc.*

5,500

69,025

Informatica Corp.*

29,280

503,323

Interactive Intelligence, Inc.*

4,200

51,492

Jack Henry & Associates, Inc.

28,068

582,411

JDA Software Group, Inc.*

8,807

131,753

Kenexa Corp.*

7,933

91,785

Lawson Software, Inc.*

46,353

258,650

Manhattan Associates, Inc.*

7,700

140,294

 


Shares

Value ($)

 

 

Mentor Graphics Corp.*

31,733

173,579

MicroStrategy, Inc. "A"*

3,027

152,016

Monotype Imaging Holdings, Inc.*

7,097

48,331

MSC.Software Corp.*

15,180

101,099

Net 1 UEPS Technologies, Inc.*

12,810

174,088

NetScout Systems, Inc.*

8,667

81,296

NetSuite, Inc.*

5,484

64,766

OpenTV Corp. "A"*

26,600

35,112

OPNET Technologies, Inc.

4,186

38,344

Parametric Technology Corp.*

38,824

453,853

Pegasystems, Inc.

5,017

132,348

Pervasive Software, Inc.*

4,735

28,836

Phoenix Technologies Ltd.*

10,100

27,371

Progress Software Corp.*

13,594

287,785

PROS Holdings, Inc.*

6,260

50,831

QAD, Inc.

3,400

11,050

Quest Software, Inc.*

21,984

306,457

Radiant Systems, Inc.*

9,097

75,505

Renaissance Learning, Inc.

2,200

20,262

Rosetta Stone, Inc.*

2,203

60,450

S1 Corp.*

17,650

121,785

Smith Micro Software, Inc.*

9,500

93,290

Solarwinds, Inc.*

4,121

67,955

Solera Holdings, Inc.*

23,308

592,023

SonicWALL, Inc.*

18,600

101,928

Sourcefire, Inc.*

7,366

91,265

SPSS, Inc.*

6,100

203,557

SRS Labs, Inc.*

3,541

23,548

SuccessFactors, Inc.* (a)

12,402

113,850

SumTotal Systems, Inc.*

10,313

49,605

Symyx Technologies, Inc.*

11,470

67,099

Synchronoss Technologies, Inc.*

6,700

82,209

Take-Two Interactive Software, Inc.* (a)

26,907

254,809

Taleo Corp. "A"*

10,518

192,164

TeleCommunication Systems, Inc. "A"*

12,735

90,546

THQ, Inc.*

23,281

166,692

TIBCO Software, Inc.*

58,887

422,220

TiVo, Inc.*

35,025

367,062

Tyler Technologies, Inc.*

10,514

164,229

Ultimate Software Group, Inc.* (a)

8,100

196,344

Unica Corp.*

4,100

22,468

VASCO Data Security International, Inc.*

8,822

64,489

Websense, Inc.*

14,834

264,639

Wind River Systems, Inc.*

22,870

262,090

 

11,446,354

Materials 3.7%

Chemicals 1.8%

A. Schulman, Inc.

7,804

117,918

American Vanguard Corp.

6,533

73,823

Arch Chemicals, Inc.

8,414

206,900

Balchem Corp.

6,114

149,915

Calgon Carbon Corp.* (a)

18,393

255,479

Ferro Corp.

15,432

42,438

GenTek, Inc.*

2,900

64,757

H.B. Fuller Co.

16,393

307,697

Hawkins, Inc.

2,826

63,811

ICO, Inc.* (a)

8,000

21,760

Innophos Holdings, Inc.

5,733

96,830

Innospec, Inc.

8,100

87,075

 


Shares

Value ($)

 

 

Koppers Holdings, Inc.

6,856

180,793

Landec Corp.*

8,547

58,034

LSB Industries, Inc.*

5,800

93,786

Minerals Technologies, Inc.

6,272

225,917

NewMarket Corp.

3,379

227,508

NL Industries, Inc.

1,832

13,520

Olin Corp.

26,088

310,186

OM Group, Inc.*

10,316

299,370

Omnova Solutions, Inc.*

14,403

46,954

PolyOne Corp.*

30,062

81,468

Quaker Chemical Corp.

3,900

51,831

Rockwood Holdings, Inc.*

16,537

242,102

Sensient Technologies Corp.

16,353

369,087

ShengdaTech, Inc.*

9,400

35,438

Solutia, Inc.*

32,377

186,492

Spartech Corp.

10,200

93,738

Stepan Co.

2,438

107,662

W.R. Grace & Co.*

24,243

299,886

Westlake Chemical Corp.

6,491

132,352

Zep, Inc.

7,176

86,471

Zoltek Companies, Inc.* (a)

9,700

94,284

 

4,725,282

Construction Materials 0.1%

Headwaters, Inc.* (a)

14,040

47,174

Texas Industries, Inc. (a)

7,922

248,434

United States Lime & Minerals, Inc.*

566

24,010

US Concrete, Inc.*

13,500

26,730

 

346,348

Containers & Packaging 0.5%

AEP Industries, Inc.*

1,734

45,760

Boise, Inc.*

12,300

21,156

Bway Holding Co.*

2,458

43,089

Graphic Packaging Holding Co.*

39,416

72,131

Myers Industries, Inc.

10,497

87,335

Rock-Tenn Co. "A"

12,854

490,509

Silgan Holdings, Inc.

9,003

441,417

 

1,201,397

Metals & Mining 0.9%

A.M. Castle & Co.

5,489

66,307

Allied Nevada Gold Corp.*

14,600

117,676

AMCOL International Corp. (a)

7,874

169,921

Brush Engineered Materials, Inc.*

6,600

110,550

Century Aluminum Co.*

15,755

98,154

China Precision Steel, Inc.*

9,934

24,636

Coeur d'Alene Mines Corp.*

22,971

282,543

General Moly, Inc.* (a)

21,500

47,730

General Steel Holdings, Inc.*

4,932

19,580

Haynes International, Inc.*

4,200

99,540

Hecla Mining Co.*

73,131

195,991

Horsehead Holding Corp.*

11,800

87,910

Kaiser Aluminum Corp.

5,200

186,732

Olympic Steel, Inc.

3,000

73,410

Paramount Gold and Silver Corp.*

20,369

30,961

RTI International Metals, Inc.*

8,015

141,625

Stillwater Mining Co.*

13,598

77,645

Sutor Technology Group Ltd.*

3,600

11,772

Universal Stainless & Alloy Products, Inc.*

2,400

39,048

US Gold Corp.*

26,225

69,234

Worthington Industries, Inc.

20,156

257,795

 

2,208,760

 


Shares

Value ($)

 

 

Paper & Forest Products 0.4%

Buckeye Technologies, Inc.*

12,398

55,667

Clearwater Paper Corp.*

3,806

96,254

Deltic Timber Corp.

3,700

131,239

Domtar Corp.*

13,954

231,357

Glatfelter

15,195

135,235

KapStone Paper and Packaging Corp.*

6,666

31,264

Louisiana-Pacific Corp.*

34,400

117,648

Neenah Paper, Inc.

4,900

43,169

Schweitzer-Mauduit International, Inc.

5,147

140,050

Wausau Paper Corp.

14,680

98,650

 

1,080,533

Telecommunication Services 1.3%

Diversified Telecommunication Services 0.9%

AboveNet, Inc.*

2,133

172,730

Alaska Communications Systems Group, Inc. (a)

15,200

111,264

Atlantic Tele-Network, Inc.

3,117

122,467

Cbeyond, Inc.*

7,800

111,930

Cincinnati Bell, Inc.*

73,400

208,456

Cogent Communications Group, Inc.*

15,294

124,646

Consolidated Communications Holdings, Inc.

8,250

96,607

D&E Communications, Inc.

4,707

48,153

FairPoint Communications, Inc.

28,090

16,854

FiberNet Telecom Group, Inc.*

1,828

22,704

General Communication, Inc. "A"*

14,100

97,713

Global Crossing Ltd.*

9,647

88,559

HickoryTech Corp.

4,042

31,043

iBasis, Inc.*

6,400

8,384

inContact, Inc.*

8,490

23,263

Iowa Telecommunications Services, Inc.

11,006

137,685

Neutral Tandem, Inc.*

10,969

323,805

NTELOS Holdings Corp.

10,068

185,452

PAETEC Holding Corp.*

41,166

111,148

Premiere Global Services, Inc.*

20,248

219,488

SureWest Communications*

4,597

48,131

 

2,310,482

Wireless Telecommunication Services 0.4%

Centennial Communications Corp.*

28,523

238,452

iPCS, Inc.*

5,800

86,768

Shenandoah Telecommunications Co.

8,072

163,781

Syniverse Holdings, Inc.*

23,122

370,646

USA Mobility, Inc.

7,460

95,190

Virgin Mobile USA, Inc. "A"*

12,563

50,503

 

1,005,340

Utilities 3.5%

Electric Utilities 1.1%

ALLETE, Inc.

9,000

258,750

Central Vermont Public Service Corp.

3,900

70,590

Cleco Corp.

20,304

455,216

El Paso Electric Co.*

15,017

209,637

Empire District Electric Co.

11,342

187,370

IDACORP, Inc.

15,872

414,894

MGE Energy, Inc.

7,718

258,939

Portland General Electric Co.

25,155

490,019

UIL Holdings Corp.

9,793

219,853

 


Shares

Value ($)

 

 

Unisource Energy Corp.

11,918

316,304

Unitil Corp.

3,371

69,510

 

2,951,082

Gas Utilities 1.4%

Chesapeake Utilities Corp.

2,194

71,371

New Jersey Resources Corp.

14,092

521,968

Nicor, Inc.

15,149

524,458

Northwest Natural Gas Co.

8,840

391,789

Piedmont Natural Gas Co., Inc.

24,639

594,046

South Jersey Industries, Inc.

9,995

348,725

Southwest Gas Corp.

14,962

332,306

The Laclede Group, Inc.

7,398

245,096

WGL Holdings, Inc.

16,838

539,153

 

3,568,912

Independent Power Producers & Energy Traders 0.0%

US Geothermal, Inc.*

19,972

28,360

Multi-Utilities 0.6%

Avista Corp.

18,538

330,162

Black Hills Corp. (a)

13,032

299,605

CH Energy Group, Inc.

5,271

246,156

Florida Public Utilities Co.

1,825

25,605

NorthWestern Corp.

12,100

275,396

PNM Resources, Inc.

29,125

311,929

 

1,488,853

Water Utilities 0.4%

American States Water Co.

6,185

214,248

Artesian Resources Corp. "A"

1,786

28,451

Cadiz, Inc.*

4,016

38,674

California Water Service Group

6,530

240,565

Connecticut Water Service, Inc.

2,660

57,695

Consolidated Water Co., Ltd.

5,200

82,420

Middlesex Water Co.

4,231

61,138

Pennichuck Corp.

1,270

28,956

SJW Corp.

4,315

97,951

Southwest Water Co.

8,225

45,402

York Water Co.

3,576

54,820

 

950,320

Total Common Stocks (Cost $340,923,081)

251,348,509

 

Warrants 0.0%

Industrials

Pegasus Wireless Corp., Expiration Date 2/15/2020* (Cost $0)

2,040

0

 

Rights 0.0%

Consumer Discretionary

Sealy Corp., Expiration Date 7/2/2009* (a) (Cost $85,444)

13,900

29,468

 

Principal Amount ($)

Value ($)

 

 

Government & Agency Obligation 0.3%

US Treasury Obligation

US Treasury Bill, 0.28%**, 11/19/2009 (b) (Cost $734,196)

735,000

734,266

 


Shares

Value ($)

 

 

Closed-End Investment Companies 0.1%

Apollo Investment Corp.

47,746

286,476

Kayne Anderson Energy Development Co.

3,259

43,214

Total Closed-End Investment Companies (Cost $878,223)

329,690

 

Securities Lending Collateral 10.8%

Daily Assets Fund Institutional, 0.48% (c) (d) (Cost $27,497,757)

27,497,757

27,497,757

 

 


Shares

Value ($)

 

 

Cash Equivalents 0.3%

Cash Management QP Trust, 0.27% (c) (Cost $623,610)

623,610

623,610

 

% of Net Assets

Value ($)

 

 

Total Investment Portfolio (Cost $370,742,311)+

109.9

280,563,300

Other Assets and Liabilities, Net (a)

(9.9)

(25,203,035)

Net Assets

100.0

255,360,265

* Non-income producing security.
** Annualized yield at time of purchase; not a coupon rate.
+ The cost for federal income tax purposes was $371,996,503. At June 30, 2009, net unrealized depreciation for all securities based on tax cost was $91,443,203. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $16,717,661 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $108,150,864.
(a) All or a portion of these securities were on loan amounting to $23,815,749 (see Notes to Financial Statements). In addition, included in other assets and liabilities, net are pending sales, amounting to $2,606,769, that are also on loan. The value of all securities loaned at June 30, 2009 amounted to $26,422,518, which is 10.3% of net assets.
(b) At June 30, 2009, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts.
(c) Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
(d) Represents collateral held in connection with securities lending. Income earned by the Portfolio is net of borrower rebates.

REIT: Real Estate Investment Trust

At June 30, 2009, open futures contracts purchased were as follows:

Futures

Expiration Date

Contracts

Aggregated Face Value ($)

Value ($)

Unrealized Appreciation ($)

Russell E Mini 2000 Index

9/18/2009

81

4,076,720

4,108,320

31,600

For information on the Portfolio's policy and additional disclosures regarding futures contracts, please refer to the Derivatives section of Note A in the accompanying Notes to Financial Statements.

Fair Value Measurements

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements," as amended, establishes a three-tier hierarchy for measuring fair value and requires additional disclosure about the classification of fair value measurements.

Various inputs are used in determining the value of the Portfolio's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Portfolio's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2009 in valuing the Portfolio's investments. For information on the Portfolio's policy regarding the valuation of investments, please refer to the Security Valuation section of Note A in the accompanying Notes to the Financial Statements.

Assets

Level 1

Level 2

Level 3

Common Stock and/or Other Equity Investments (e)

$ 251,707,667

$ —

$ 0+

Short-Term Investments (e)

27,497,757

1,357,876

—

Derivatives (f)

31,600

—

—

Total

$ 279,237,024

$ 1,357,876

$ 0

(e) See Investment Portfolio for additional detailed categorizations.
(f) Derivatives include unrealized appreciation on open futures contracts.
+ At December 31, 2008 market value of security was $0.

The accompanying notes are an integral part of the financial statements.

Financial Statements

Statement of Assets and Liabilities

as of June 30, 2009 (Unaudited)

Assets

Investments:

Investments in securities, at value (cost $342,620,944) — including $23,815,749 of securities loaned

$ 252,441,933

Investment in Daily Assets Fund Institutional (cost $27,497,757)*

27,497,757

Investment in Cash Management QP Trust (cost $623,610)

623,610

Total investments at value (cost $370,742,311)

280,563,300

Cash

50,709

Receivable for investments sold

33,657,826

Dividends receivable

231,812

Interest receivable

42,570

Receivable for Portfolio shares sold

61,721

Other assets

12,235

Total assets

314,620,173

Liabilities

Payable for investments purchased

31,443,205

Payable upon return of securities loaned

27,497,757

Payable for Portfolio shares redeemed

112,157

Payable for daily variation margin on open futures contracts

6,480

Accrued management fee

72,487

Other accrued expenses and payables

127,822

Total liabilities

59,259,908

Net assets, at value

$ 255,360,265

Net Assets Consist of

Undistributed net investment income

1,540,118

Net unrealized appreciation (depreciation) on:

Investments

(90,179,011)

Futures

31,600

Accumulated net realized gain (loss)

(22,440,880)

Paid-in capital

366,408,438

Net assets, at value

$ 255,360,265

Class A

Net Asset Value, offering and redemption price per share ($213,596,828 ÷ 26,695,745 outstanding shares of beneficial interest, $.001 par value, unlimited number of shares authorized)

$ 8.00

Class B

Net Asset Value, offering and redemption price per share ($41,763,437 ÷ 5,216,499 outstanding shares of beneficial interest, $.001 par value, unlimited number of shares authorized)

$ 8.01

* Represents collateral on securities loaned.

The accompanying notes are an integral part of the financial statements.

Statement of Operations

for the six months ended June 30, 2009 (Unaudited)

Investment Income

Income:
Dividends (net of foreign taxes withheld of $425)

$ 1,912,234

Interest — Cash Management QP Trust

9,862

Interest

513

Securities lending income, including income from Daily Assets Fund Institutional, net of borrower rebates

307,747

Total Income

2,230,356

Expenses:
Management fee

395,601

Administration fee

113,029

Custodian fee

12,100

Distribution service fees (Class B)

47,531

Services to shareholders

3,104

Professional fees

33,804

Trustees' fees and expenses

6,097

Reports to shareholders

45,013

Other

29,780

Total expenses before expense reductions

686,059

Expense reductions

(89,015)

Total expenses after expense reductions

597,044

Net investment income (loss)

1,633,312

Realized and Unrealized Gain (Loss) on Investment Transactions

Net realized gain (loss) from:
Investments

(19,709,171)

Futures

1,068,427

Foreign currency

(199)

 

(18,640,943)

Change in net unrealized appreciation (depreciation)
Investments

23,961,207

Futures

(667,457)

Foreign currency

11

 

23,293,761

Net gain (loss)

4,652,818

Net increase (decrease) in net assets resulting from operations

$ 6,286,130

The accompanying notes are an integral part of the financial statements.

Statement of Changes in Net Assets

Increase (Decrease) in Net Assets

Six Months Ended June 30, 2009 (Unaudited)

Year Ended December 31, 2008

Operations:
Net investment income (loss)

$ 1,633,312

$ 4,678,372

Net realized gain (loss)

(18,640,943)

14,901,111

Change in net unrealized appreciation (depreciation)

23,293,761

(143,865,318)

Net increase (decrease) in net assets resulting from operations

6,286,130

(124,285,835)

Distributions to shareholders from:
Net investment income:

Class A

(3,930,572)

(4,288,526)

Class B

(665,403)

(769,075)

Net realized gains:

Class A

(14,741,493)

(27,269,429)

Class B

(2,865,686)

(5,881,158)

Total distributions

(22,203,154)

(38,208,188)

Portfolio share transactions:

Class A

Proceeds from shares sold

31,835,972

58,634,125

Reinvestment of distributions

18,672,065

31,557,955

Cost of shares redeemed

(21,420,904)

(64,335,261)

Net increase (decrease) in net assets from Class A share transactions

29,087,133

25,856,819

Class B

Proceeds from shares sold

2,703,441

7,947,062

Reinvestment of distributions

3,531,089

6,650,233

Cost of shares redeemed

(3,922,427)

(16,386,534)

Net increase (decrease) in net assets from Class B share transactions

2,312,103

(1,789,239)

Increase (decrease) in net assets

15,482,212

(138,426,443)

Net assets at beginning of period

239,878,053

378,304,496

Net assets at end of period (including undistributed net investment income of $1,540,118 and $4,502,781, respectively)

$ 255,360,265

$ 239,878,053

Other Information

Class A

Shares outstanding at beginning of period

22,888,959

20,730,811

Shares sold

4,061,482

5,038,694

Shares issued to shareholders in reinvestment of distributions

2,547,349

2,603,792

Shares redeemed

(2,802,045)

(5,484,338)

Net increase (decrease) in Class A shares

3,806,786

2,158,148

Shares outstanding at end of period

26,695,745

22,888,959

Class B

Shares outstanding at beginning of period

4,907,741

4,996,175

Shares sold

352,171

731,345

Shares issued to shareholders in reinvestment of distributions

481,731

548,246

Shares redeemed

(525,144)

(1,368,025)

Net increase (decrease) in Class B shares

308,758

(88,434)

Shares outstanding at end of period

5,216,499

4,907,741

The accompanying notes are an integral part of the financial statements.

Financial Highlights

Class A

Years Ended December 31,

2009a

2008

2007

2006

2005

2004

Selected Per Share Data

Net asset value, beginning of period

$ 8.63

$ 14.71

$ 16.12

$ 14.40

$ 14.35

$ 12.24

Income (loss) from investment operations:

Net investment income (loss)b

.06

.18

.17

.14

.11

.11

Net realized and unrealized gain (loss)

.07

(4.77)

(.40)

2.34

.42

2.06

Total from investment operations

.13

(4.59)

(.23)

2.48

.53

2.17

Less distributions from:

Net investment income

(.16)

(.20)

(.14)

(.10)

(.09)

(.06)

Net realized gains

(.60)

(1.29)

(1.04)

(.66)

(.39)

—

Total distributions

(.76)

(1.49)

(1.18)

(.76)

(.48)

(.06)

Net asset value, end of period

$ 8.00

$ 8.63

$ 14.71

$ 16.12

$ 14.40

$ 14.35

Total Return (%)c

2.28**

(34.12)

(1.90)

17.49

4.26

17.76

Ratios to Average Net Assets and Supplemental Data

Net assets, end of period ($ millions)

214

198

305

536

449

450

Ratio of expenses before expense reductions (%)

.57*

.54

.53

.47

.46

.48

Ratio of expenses after expense reductions (%)

.49*

.47

.51

.45

.45

.45

Ratio of net investment income (loss) (%)

1.49*

1.51

1.09

.93

.78

.87

Portfolio turnover rate (%)

18**

25

24d

42

26

22

a For the six months ended June 30, 2009 (Unaudited).
b Based on average shares outstanding during the period.
c Total return would have been lower had certain expenses not been reduced.
d Excludes portfolio securities delivered as a result of processing redemption in-kind transactions.
* Annualized
** Not annualized

Class B

Years Ended December 31,

2009a

2008

2007

2006

2005

2004

Selected Per Share Data

Net asset value, beginning of period

$ 8.62

$ 14.70

$ 16.11

$ 14.39

$ 14.34

$ 12.23

Income (loss) from investment operations:

Net investment income (loss)b

.05

.15

.13

.10

.07

.08

Net realized and unrealized gain (loss)

.08

(4.77)

(.40)

2.34

.43

2.05

Total from investment operations

.13

(4.62)

(.27)

2.44

.50

2.13

Less distributions from:

Net investment income

(.14)

(.17)

(.10)

(.06)

(.06)

(.02)

Net realized gains

(.60)

(1.29)

(1.04)

(.66)

(.39)

—

Total distributions

(.74)

(1.46)

(1.14)

(.72)

(.45)

(.02)

Net asset value, end of period

$ 8.01

$ 8.62

$ 14.70

$ 16.11

$ 14.39

$ 14.34

Total Return (%)c

2.27**

(34.33)

(2.16)

17.19

3.99

17.48

Ratios to Average Net Assets and Supplemental Data

Net assets, end of period ($ millions)

42

42

73

68

45

35

Ratio of expenses before expense reductions (%)

.82*

.79

.78

.72

.71

.73

Ratio of expenses after expense reductions (%) 

.74*

.72

.76

.70

.70

.70

Ratio of net investment income (loss) (%)

1.24*

1.26

.84

.68

.53

.66

Portfolio turnover rate (%)

18**

25

24d

42

26

22

a For the six months ended June 30, 2009 (Unaudited).
b Based on average shares outstanding during the period.
c Total return would have been lower had certain expenses not been reduced.
d Excludes portfolio securities delivered as a result of processing redemption in-kind transactions.
* Annualized
** Not annualized

Notes to Financial Statements (Unaudited)

A. Organization and Significant Accounting Policies

DWS Investments VIT Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as a diversified, open-end management investment company. The Trust is organized as a Massachusetts business trust. The Trust is comprised of several portfolios. DWS Small Cap Index VIP (the "Portfolio") is one of the series the Trust offers to investors. The Portfolio is an underlying investment vehicle for variable annuity contracts and variable life insurance policies to be offered by the separate accounts of certain life insurance companies ("Participating Insurance Companies").

Multiple Classes of Shares of Beneficial Interest. The Portfolio offers two classes of shares to investors: Class A shares and Class B shares. Class B shares are subject to Rule 12b-1 distribution fees under the 1940 Act equal to an annual rate up to 0.25% of the Class B shares average daily net assets. Class A shares are not subject to such fees.

Investment income, realized and unrealized gains and losses, and certain Portfolio-level expenses and expense reductions, if any, are borne pro rata on the basis of relative net assets by the holders of all classes of shares, except that each class bears certain expenses unique to that class (including the applicable 12b-1 distribution fee). Differences in class-level expenses may result in payment of different per share dividends by class. All shares have equal rights with respect to voting subject to class-specific arrangements.

The Portfolio's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Portfolio in the preparation of its financial statements.

Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading. Equity securities are valued at the most recent sale price or official closing price reported on the exchange (US or foreign) or over-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation.

Debt securities are valued by independent pricing services approved by the Trustees of the Portfolio. If the pricing services are unable to provide valuations, the securities are valued at the average of the means based on the most recent bid or evaluated price, as applicable, obtained from one or more broker-dealers. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes.

Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par, are valued at amortized cost. Investments in open-end investment companies and Cash Management QP Trust are valued at their net asset value each business day.

Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Trustees. In accordance with the Portfolio's valuation procedures, factors used in determining value may include, but are not limited to, the type of the security, the size of the holding, the initial cost of the security, the existence of any contractual restrictions on the security's disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, quotations or evaluated prices from broker-dealers and/or pricing services, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the company's financial statements, an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.

Foreign Currency Translations. The books and records of the Portfolio are maintained in US dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into US dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into US dollars at the prevailing exchange rates on the respective dates of the transactions.

Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the disposition of forward foreign currency exchange contracts and foreign currencies, and the difference between the amount of net investment income accrued and the US dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.

Securities Lending. The Portfolio may lend securities to financial institutions. The Portfolio retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the issuer of securities and to participate in any changes in their market value. The Portfolio requires the borrowers of the securities to maintain collateral with the Portfolio consisting of liquid, unencumbered assets having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agents will use their best efforts to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The Portfolio may invest the cash collateral into a joint trading account in an affiliated money market fund pursuant to Exemptive Orders issued by the SEC. The Portfolio receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral net of borrower rebates and fees paid to a lending agent. Either the Portfolio or the borrower may terminate the loan. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. The Portfolio is also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.

Derivatives. The Portfolio has adopted the provisions of Statement of Financial Accounting Standard No. 161 ("FAS 161"), "Disclosures about Derivative Instruments and Hedging Activities," effective at the beginning of the Portfolio's fiscal year. FAS 161 requires enhanced disclosures about the Portfolio's derivative and hedging activities and derivatives accounted for as hedging instruments under FAS 133 must be disclosed separately from derivatives that do not qualify for hedge accounting under FAS 133. Because investment companies account for their derivatives at fair value and record any changes in fair value in current period earnings, the Portfolio's derivatives are not accounted for as hedging instruments under FAS 133. As such, even though the Portfolio may use derivatives in an attempt to achieve an economic hedge, the Portfolio's derivatives are not considered to be hedging instruments under FAS 133. The disclosure below is presented in accordance with FAS 161.

Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). The Portfolio is subject to equity risk. The Portfolio invests in futures to keep cash on hand to meet shareholder redemptions or other needs while maintaining exposure to the stock market.

Futures contracts are valued at the most recent settlement price. Upon entering into a futures contract, the Portfolio is required to deposit with a financial intermediary cash or securities ("initial margin") in an amount equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments ("variation margin") are made or received by the Portfolio dependent upon the daily fluctuations in the value and are recorded for financial reporting purposes as unrealized gains or losses by the Portfolio. Gains or losses are realized when the contract expires or is closed. Since all futures contracts are exchange traded, counterparty risk is minimized as the exchange's clearinghouse acts as the counterparty, and guarantees the futures against default. Upon a futures contract close out or expiration, realized gain or loss is recognized.

Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit the Portfolio's ability to close out a futures contract prior to the settlement date and that a change in the value of a futures contract may not correlate exactly with the changes in the value of the underlying hedged security, index or currency. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities.

The primary risk exposure of the futures contracts is equity contract risk. See Statement of Assets and Liabilities for net unrealized appreciation (depreciation) on futures. Payable for daily variation margin on open futures contracts reflects unsettled variation margin. See Statement of Operations for net realized gain (loss) from futures and for change in net unrealized appreciation (depreciation) on futures.

A summary of the open futures contracts as of June 30, 2009 is included in a table following the Portfolio's Investment Portfolio. The volume indicated is generally indicative of the volume throughout the period.

Federal Income Taxes. The Portfolio's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable and tax-exempt income to its shareholders.

From November 1, 2008 through December 31, 2008, the Portfolio incurred approximately $1,846,000 of net realized capital losses. As permitted by tax regulations, the Portfolio intends to elect to defer these losses and treat them as arising in the fiscal year ending December 31, 2009.

The Portfolio has reviewed the tax positions for the open tax years as of December 31, 2008 and has determined that no provision for income tax is required in the Portfolio's financial statements. The Portfolio's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Distribution of Income and Gains. Net investment income of the Portfolio, if any, is distributed to shareholders annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Portfolio if not distributed, and, therefore, will be distributed to shareholders at least annually.

The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences primarily relate to investments in futures contracts and certain securities sold at a loss. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Portfolio may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Portfolio.

The tax character of current year distributions will be determined at the end of the current fiscal year.

Contingencies. In the normal course of business, the Portfolio may enter into contracts with service providers that contain general indemnification clauses. The Portfolio's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet been made. However, based on experience, the Portfolio expects the risk of loss to be remote.

Expenses. Expenses of the Trust arising in connection with a specific portfolio are allocated to that portfolio. Other Trust expenses which cannot be directly attributed to a portfolio are apportioned among the portfolios in the Trust.

Real Estate Investment Trusts. The Portfolio periodically recharacterizes distributions received from a Real Estate Investment Trust ("REIT") investment based on information provided by the REIT into the following categories: ordinary income, long-term and short-term capital gains, and return of capital. If information is not available timely from a REIT, the recharacterization will be estimated and a recharacterization will be made in the following year when such information becomes available. Distributions received from REITs in excess of income are recorded as either a reduction of cost of investments or realized gains. The Portfolio distinguishes between dividends on a tax basis and a financial reporting basis and only distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital.

Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset valuation calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Realized gains and losses from investment transactions are recorded on an identified cost basis. The Portfolio distinguishes between dividends on a tax basis and a financial reporting basis and only distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital.

B. Purchases and Sales of Securities

During the six months ended June 30, 2009, purchases and sales of investment securities (excluding short-term investments) aggregated $59,094,031 and $41,667,456, respectively.

C. Related Parties

Investment Management Agreement. Under the Investment Management Agreement with Deutsche Investment Management Americas Inc. ("DIMA" or the "Advisor"), an indirect, wholly owned subsidiary of Deutsche Bank AG, the Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold, or entered into by the Portfolio or delegates such responsibility to the Portfolio's subadvisor. Pursuant to the Investment Management Agreement with the Advisor, the Portfolio pays the Advisor an annual fee based on its average daily net assets, computed and accrued daily and payable monthly at the annual rate of 0.35%.

Northern Trust Investments, N.A. ("NTI") acts as investment sub-advisor for the Portfolio. As the Portfolio's investment sub-advisor, NTI makes the Portfolio's investment decisions. It buys and sells securities for the Portfolio and conducts the research that leads to these purchase and sale decisions. NTI is paid by the Advisor for its services.

For the period from January 1, 2009 through April 30, 2009, the Advisor has contractually agreed to waive all or a portion of its management fee and pay certain operating expenses of the Portfolio (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) to the extent necessary to maintain the operating expenses of 0.47% for Class A.

For the period from May 1, 2009 through September 30, 2009, the Advisor has contractually agreed to waive all or a portion of its management fee and pay certain operating expenses of the Portfolio (excluding certain expenses such as extraordinary expenses, taxes, brokerage and interest) to the extent necessary to maintain the operating expenses of 0.51% for Class A.

Accordingly, for the six months ended June 30, 2009, the Advisor waived a portion of its management fee aggregating $88,374 and the amount charged aggregated $307,227, which was equivalent to an annualized effective rate of 0.27% of the Portfolio's average daily net assets.

Administration Fee. Pursuant to the Administrative Services Agreement, DIMA provides most administrative services to the Portfolio. For all services provided under the Administrative Services Agreement, the Portfolio pays DIMA an annual fee ("Administration Fee") of 0.10% of the Portfolio's average daily net assets, computed and accrued daily and payable monthly. For the six months ended June 30, 2009, the Administration Fee was $113,029, of which $21,356 is unpaid.

Distribution Service Agreement. DWS Investments Distributors, Inc. ("DIDI"), an affiliate of the Advisor, is the Portfolio's distributor. In accordance with the Distribution Plan, DIDI receives 12b-1 fees of 0.25% of average daily net assets of Class B shares. For the six months ended June 30, 2009, the Distribution Service Fee was as follows:

Distribution Service Fee

Total Aggregated

Unpaid at June 30, 2009

Class B

$ 47,531

$ 8,766

Service Provider Fees. DWS Investments Service Company ("DISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent of the Portfolio. Pursuant to a sub-transfer agency agreement among DISC and DST Systems, Inc. ("DST"), DISC has delegated certain transfer agent, dividend-paying agent and shareholder service agent functions to DST. DISC compensates DST out of the shareholder servicing fee they receive from the Portfolio. For the six months ended June 30, 2009, the amounts charged to the Portfolio by DISC were as follows:

Services to Shareholders

Total Aggregated

Waived

Unpaid at June 30, 2009

Class A

$ 639

$ 639

$ —

Class B

174

—

59

 

$ 813

$ 639

$ 59

Typesetting and Filing Service Fees. Under an agreement with DIMA, DIMA is compensated for providing typesetting and certain regulatory filing services to the Portfolio. For the six months ended June 30, 2009, the amount charged to the Portfolio by DIMA included in the Statement of Operations under "reports to shareholders" aggregated $7,584, of which $4,098 is unpaid.

Trustees' Fees and Expenses. The Portfolio paid each Trustee not affiliated with the Advisor retainer fees plus specified amounts for various committee services and for the Board Chairperson.

Cash Management QP Trust. Pursuant to an Exemptive Order issued by the SEC, the Portfolio may invest in the Cash Management QP Trust (the "QP Trust") and other affiliated funds managed by the Manager or Advisor. The QP Trust seeks to provide as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity. The QP Trust does not pay the Manager or Advisor a management fee for the affiliated funds' investments in the QP Trust.

D. Fee Reductions

The Portfolio has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Portfolio's custodian expenses. During the six months ended June 30, 2009, the Portfolio's custodian fee was reduced by $2 for custody credits earned.

E. Line of Credit

The Portfolio and other affiliated funds (the "Participants") share in a $450 million revolving credit facility provided by a syndication of banks. The Portfolio may borrow for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated based on net assets, among each of the Participants. Interest is calculated at a rate per annum equal to the sum of the Federal Funds Rate plus 1.25 percent plus if LIBOR exceeds the Federal Funds Rate the amount of such excess. The Portfolio may borrow up to a maximum of 33 percent of its net assets under the agreement.

F. Ownership of the Portfolio

At June 30, 2009, one participating insurance company was beneficial owner of record of 10% or more of the total outstanding Class A shares of the Portfolio, owning 56%. At June 30, 2009, two participating insurance companies were beneficial owners of record of 10% or more of the outstanding Class B shares of the Portfolio, each owning 49% and 23%, respectively.

G. Review for Subsequent Events

In accordance with the provisions set forth in Financial Accounting Standards Board Statement of Financial Accounting Standards No. 165 "Subsequent Events," adopted by the Portfolio as of June 30, 2009, events and transactions from July 1, 2009 through August 13, 2009, the date the financial statements were available to be issued, have been evaluated by management for subsequent events. Management has determined that there were no material events that would require disclosure in the Portfolio's financial statements through this date.

Proxy Voting

The Portfolio's policies and procedures for voting proxies for portfolio securities and information about how the Portfolio voted proxies related to its portfolio securities during the 12-month period ended June 30 are available on our Web site — www.dws-investments.com (click on "proxy voting" at the bottom of the page) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the Portfolio's policies and procedures without charge, upon request, call us toll free at (800) 621-1048.

Summary of Management Fee Evaluation by Independent Fee Consultant

October 24, 2008

Pursuant to an Order entered into by Deutsche Investment Management Americas and affiliates (collectively, "DeAM") with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds (formerly the DWS Scudder Funds). My duties include preparing an annual written evaluation of the management fees DeAM charges the Funds, considering among other factors the management fees charged by other mutual fund companies for like services, management fees DeAM charges other clients for like services, DeAM's costs of supplying services under the management agreements and related profit margins, possible economies of scale if a Fund grows larger, and the nature and quality of DeAM's services, including fund performance. This report summarizes my evaluation for 2008, including my qualifications, the evaluation process for each of the DWS Funds, consideration of certain complex-level factors, and my conclusions. I served in substantially the same capacity in 2007.

Qualifications

For more than 35 years I have served in various professional capacities within the investment management business. I have held investment analysis and advisory positions, including securities analyst, portfolio strategist and director of investment policy with a large investment firm. I have also performed business management functions, including business development, financial management and marketing research and analysis.

Since 1991, I have been an independent consultant within the asset management industry. I have provided services to over 125 client organizations, including investment managers, mutual fund boards, product distributors and related organizations. Over the past ten years I have completed a number of assignments for mutual fund boards, specifically including assisting boards with management contract renewal.

I hold a Master of Business Administration degree, with highest honors, from Harvard University and Master of Science and Bachelor of Science (highest honors) degrees from the University of California at Berkeley. I am an independent director and audit committee financial expert for two closed-end mutual funds, serve on the board of directors of a private market research company, and have served in various leadership and financial oversight capacities with non-profit organizations.

Evaluation of Fees for each DWS Fund

My work focused primarily on evaluating, fund-by-fund, the fees charged to each of the 129 Fund portfolios in the DWS Fund family. For each Fund, I considered each of the key factors mentioned above, as well as any other relevant information. In doing so I worked closely with the Funds' Independent Directors in their annual contract renewal process, as well as in their approval of contracts for several new funds (documented separately).

In evaluating each Fund's fees, I reviewed comprehensive materials provided by or on behalf of DeAM, including expense information prepared by Lipper Analytical, comparative performance information, profitability data, manager histories, and other materials. I also accessed certain additional information from the Lipper, Strategic Insight, and Morningstar databases and drew on my industry knowledge and experience.

To facilitate evaluating this considerable body of information, I prepared for each Fund a document summarizing the key data elements in each area as well as additional analytics discussed below. This made it possible to consider each key data element in the context of the others.

In the course of contract renewal, DeAM agreed to implement a number of fee and expense adjustments requested by the Independent Directors which will favorably impact future fees and expenses, and my evaluation includes the effects of these changes.

Fees and Expenses Compared with Other Funds

The competitive fee and expense evaluation for each fund focused on two primary comparisons:

The Fund's contractual management fee (the advisory fee plus the administration fee where applicable) compared with those of a group of typically 12-15 funds in the same Lipper investment category (e.g. Large Capitalization Growth) having similar distribution arrangements and being of similar size.

The Fund's total expenses compared with a broader universe of funds from the same Lipper investment category and having similar distribution arrangements.

These two comparisons provide a view of not only the level of the fee compared with funds of similar scale but also the total expense the Fund bears for all the services it receives, in comparison with the investment choices available in the Fund's investment category and distribution channel. The principal figure-of-merit used in these comparisons was the subject Fund's percentile ranking against peers.

DeAM's Fees for Similar Services to Others

DeAM provided management fee schedules for all of its US domiciled fund and non-fund investment management accounts in any of the investment categories where there is a DWS Fund. These similar products included the other DWS Funds, non-fund pooled accounts, institutional accounts and sub-advisory accounts. Using this information, I calculated for each Fund the fee that would be charged to each similar product, at the subject Fund's asset level.

Evaluating information regarding non-fund products is difficult because there are varying levels of services required for different types of accounts, with mutual funds generally requiring considerably more regulatory and administrative types of service as well as having more frequent cash flows than other types of accounts. Also, while mutual fund fees for similar fund products can be expected to be similar, there will be some differences due to different pricing conditions in different distribution channels (e.g. retail funds versus those used in variable insurance products), differences in underlying investment processes and other factors.

Costs and Profit Margins

DeAM provided a detailed profitability analysis for each Fund. After making some adjustments so that the presentation would be more comparable to the available industry figures, I reviewed profit margins from investment management alone, from investment management plus other fund services (excluding distribution) provided to the Funds by DeAM (principally shareholder services), and DeAM profits from all sources, including distribution. A later section comments on overall profitability.

Economies of Scale

Economies of scale — an expected decline in management cost per dollar of fund assets as fund assets grow — are very rarely quantified and documented because of inherent difficulties in collecting and analyzing relevant data. However, in virtually every investment category that I reviewed, larger funds tend to have lower fees and lower total expenses than smaller funds. To see how each DWS Fund compares with this industry observation, I reviewed:

The trend in Fund assets over the last five years and the accompanying trend in total expenses. This shows if the Fund has grown and, if so, whether total expense (management fees as well as other expenses) have declined as a percent of assets.

Whether the Fund has break-points in its management fee schedule, the extent of the fee reduction built into the schedule and the asset levels where the breaks take effect, and in the case of a sub-advised Fund how the Fund's break-points compare with those of the sub-advisory fee schedule.

How the Fund's contractual fee schedule compares with trends in the industry data. To accomplish this, I constructed a chart showing how actual latest-fiscal-year contractual fees of the Fund and of other similar funds relate to average fund assets, with the subject Fund's contractual fee schedule superimposed.

Quality of Service — Performance

The quality-of-service evaluation focused on investment performance, which is the principal result of the investment management service. Each Fund's performance was reviewed over the past 1, 3, 5 and 10 years, as applicable, and compared with that of other funds in the same investment category and with a suitable market index.

In addition, I calculated and reviewed risk-adjusted returns relative to an index of similar mutual funds' returns and a suitable market index. The risk-adjusted returns analysis provides a way of determining the extent to which the Fund's return comparisons are mainly the product of investment value-added (or lack thereof) or alternatively taking considerably more or less risk than is typical in its investment category.

I also received and considered the history of portfolio manager changes for each Fund, as this provided an important context for evaluating the performance results.

Complex-Level Considerations

While this evaluation was conducted mainly at the individual fund level, there are some issues relating to the reasonableness of fees that can alternatively be considered across the whole fund complex:

I reviewed DeAM's profitability analysis for all DWS Funds, with a view toward determining if the allocation procedures used were reasonable and how profit levels compared with public data for other investment managers.

I considered whether DeAM and affiliates receive any significant ancillary or "fall-out" benefits that should be considered in interpreting the direct profitability results. These would be situations where serving as the investment manager of the Funds is beneficial to another part of the Deutsche Bank organization.

I considered how aggregated DWS Fund expenses had varied over the years, by asset class and in the context of trends in asset levels.

I reviewed the structure of the DeAM organization, trends in staffing levels, and information on compensation of investment management and other professionals compared with industry data.

Findings

Based on the process and analysis discussed above, which included reviewing a wide range of information from management and external data sources and considering among other factors the fees DeAM charges other clients, the fees charged by other fund managers, DeAM's costs and profits associated with managing the Funds, economies of scale, possible fall-out benefits, and the nature and quality of services provided, in my opinion the management fees charged the DWS Funds are reasonable.

scif_sigmack1
Thomas H. Mack

Summary of Administrative Fee Evaluation by Independent Fee Consultant

September 29, 2008

Pursuant to an Order entered into by Deutsche Asset Management (DeAM) with the Attorney General of New York, I, Thomas H. Mack, have been appointed the Independent Fee Consultant for the DWS Funds and have as part of my duties evaluated the reasonableness of the proposed management fees to be charged by DeAM to the DWS Funds, taking onto account a proposal to pass through to the funds certain fund accounting-related charges in connection with new regulatory requirements. My evaluation considered the following:

• While the proposal would alter the services to be provided under the Administration Agreement, which I consider to be part of fund management under the Order, it is my opinion that the change in services is slight and that the scope of prospective services under the combination of the Advisory and Administration Agreements continues to be comparable with those typically provided to competitive funds under their management agreements.

• While the proposal would increase fund expenses, according to a pro forma analysis performed by management, the prospective effect is less than .01% for all but seven of the DeAM Funds' 438 active share classes, and in all cases the effect is less than .03% and overall expenses would remain reasonable in my opinion.

Based on the foregoing considerations, in my opinion the fees and expenses for all of the DWS Funds will remain reasonable if the Directors adopt this proposal.

scif_sigmack0
Thomas H. Mack

Notes

Notes

Deutsche Investment Management Americas Inc. ("DIMA"), an indirect, wholly owned subsidiary of Deutsche Bank AG, is the Portfolio's Advisor.

DWS Investments is part of Deutsche Bank's Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.

The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The managers' views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.

This information must be preceded or accompanied by a current prospectus.

Portfolio changes should not be considered recommendations for action by individual investors.

DWS Investments Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606
(800) 778-1482

vit-scif-3 (R-12546-1 8/09)

scif_backcoverlogo0

 

ITEM 2.

CODE OF ETHICS

 

 

 

Not applicable.

 

 

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT

 

 

 

Not applicable.

 

 

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

 

 

Not applicable.

 

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS

 

 

 

Not Applicable

 

 

ITEM 6.

SCHEDULE OF INVESTMENTS

 

 

 

Not Applicable

 

 

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

 

 

 

Not applicable.

 

 

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

 

 

 

Not applicable.

 

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

 

 

 

Not Applicable.

 

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

 

 

The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Chairman of the Board, P.O. Box 100176, Cape Coral, FL 33910.

 

 

ITEM 11.

CONTROLS AND PROCEDURES

 

 

 

(a)        The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

 

 

 

(b)        There have been no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.

 

 

 

 

ITEM 12.

EXHIBITS

 

 

 

(a)(1)   Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

 

 

(b)       Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

 

 

 

 

Form N-CSRS Item F

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Registrant:

DWS Small Cap Index VIP, a series of DWS Investments VIT Funds

 

 

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 20, 2009

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Registrant:

DWS Small Cap Index VIP, a series of DWS Investments VIT Funds

 

 

 

 

By:

/s/Michael G. Clark

Michael G. Clark

President

 

 

Date:

August 20, 2009

 

 

 

 

By:

/s/Paul Schubert

Paul Schubert

Chief Financial Officer and Treasurer

 

 

Date:

August 20, 2009