N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number

811- 08821

Rydex Variable Trust

(Exact name of registrant as specified in charter)

9601 Blackwell Road, Suite 500

Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Carl G. Verboncoeur

Rydex Variable Trust

9601 Blackwell Road, Suite 500

Rockville, Maryland 20850

(Name and address of agent for service)

Registrant's telephone number, including area code:              1-301-296-5149

Date of fiscal year end:     December 31, 2007

Date of reporting period:    December 31, 2007

Form N-CSR is to be used by management investment companies to file reports with the

Commission not later than 10 days after the transmission to stockholders of any report that is

required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act

of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-

CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the

Commission will make this information public. A registrant is not required to respond to the

collection of information contained in Form N-CSR unless the Form displays a currently valid

Office of Management and Budget ("OMB") control number. Please direct comments concerning

the accuracy of the information collection burden estimate and any suggestions for reducing the

burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,

DC 20549-0609. The OMB has reviewed this collection of information under the clearance

requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

Rydex Variable Trust Annual Report

Benchmark Funds

Sector Funds

AdvisorOne Funds

Alternative Strategy Funds

Essential Portfolio Funds

Item 2. Code of Ethics.

The Board of Trustees of the Trust has adopted a Combined Code of Ethics (the “Code”)

pursuant to Rule 17j-1 under the 1940 Act. The Advisor and Distributor are also covered by the

Code. The Code applies to the personal investing activities of trustees, directors, officers, and

certain employees (“access persons”). Rule 17j-1 and the Code are designed to prevent unlawful

practices in connection with the purchase or sale of securities by access persons. Under the

Code, access persons are permitted to engage in personal securities transactions, but are required

to report their personal securities transactions for monitoring purposes. In addition, certain

access persons are required to obtain approval before investing in initial public offerings or

private placements. No substantive amendments were approved or waivers were granted to the

Code during the period covered by this report. The Code is filed as an exhibit to this Form N-

CSR.

Item 3. Audit Committee Financial Expert.

The registrant's Board of Trustees has determined that Werner Keller, an "independent" Trustee

serving on the registrant's audit committee, is an "audit committee financial expert," as defined in

Item 3 of Form N-CSR. Under applicable securities laws, a person who is determined to be an

audit committee financial expert will not be deemed an "expert" for any purpose, including

without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of

being designated or identified as an audit committee financial expert. The designation or

identification of a person as an audit committee financial expert does not impose on such person

any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities

imposed on such person as a member of the audit committee and Board of Trustees in the

absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

(a)-(d) The aggregate Audit Fees billed by the Trust’s principal accountant, for the audit of the

annual financial statements in connection with statutory and regulatory filings for the fiscal years

ended December 31, 2007 and December 31, 2006 were $941,675 and $896,832, respectively.

The aggregate Tax Fees billed by Trust’s principal accountant for professional services rendered

for tax compliance, tax advice, and tax planning, including preparation of tax returns and

distribution assistance, for the fiscal years ended December 31, 2007 and December 31, 2006

were $0 and $1,500, respectively.

(e)

The audit committee has adopted a policy whereby audit and non-audit services

performed by the registrant’s principal accountant for the registrant, its investment advisor, and

any entity controlling, controlled by, or under common control with the investment advisor that

provides ongoing services to the registrant require pre-approval in advance at regularly

scheduled audit committee meetings. If such service is required between regularly scheduled

audit committee meetings, the chairman of the audit committee, J. Kenneth Dalton, is authorized

to pre-approve the service with full committee approval at the next scheduled meeting. There

shall be no waivers of the pre-approval process. No services described in (b)-(d) above were

approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)

Not applicable.

(g)

The aggregate non-audit fees billed by the registrant’s accountant for the most recent

fiscal year and the preceding fiscal year for services rendered to the registrant, the investment

advisor, and any entity controlling, controlled by, or under common control with the advisor that

provides ongoing services to the registrant were $31,500 and $30,000, respectively. These

aggregate fees were less than the aggregate fees billed for the same periods by the registrant’s

principal accountant for audit services rendered to the registrant, the investment advisor, and any

entity controlling, controlled by, or under common control with the advisor that provides

ongoing services to the registrant.

(h)

All non-audit services rendered in (g) above were pre-approved by the registrant’s audit

committee. As such, the audit committee has considered these services in maintaining the

principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of

this form.

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.

Not applicable.

Item 11. Controls and Procedures.

(a)

Based on their evaluation on March 10, 2008, the President (principal executive officer)

and the Treasurer (principal financial officer) of the Rydex Variable Trust (the “Trust”) believe

that there were no significant deficiencies in the design or operation of the internal controls of

the Trust or Rydex Investments (“RI”), the investment advisor and manager of the Trust, or

Rydex Distributors, Inc. (“RD”), which acts as distributor for the Trust, including disclosure

controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of

1940) which would have adversely affected the ability of the Trust or RI on behalf of the Trust,

to record, process, summarize, and report the subject matter contained in this Report.

There was no fraud, whether or not material, involving officers or employees of RI, RD or the

Trust who have a significant role in the Trust’s internal controls, including disclosure controls

and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) that

has come to the attention of the Advisor or the officers of the Trust, including its President and

Treasurer.

(b)

There were no significant changes in the Trust’s or RI’s internal controls over financial

reporting, (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) 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 control over

financial reporting.

Item 12. Exhibits.

(a)(1)

The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.

(a)(2)

Separate certifications by the President (principal executive officer) and Treasurer

(principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR

270.30a-2(a)) are attached.

(b)

A certification by the registrant’s President (principal executive officer) and Treasurer

(principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is

attached.

EX.-12(a)(2)(i)

CERTIFICATION

I, Carl G. Verboncoeur, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or

omit to state a material fact necessary to make the statements made, in light of the circumstances

under which such statements were made, not misleading with respect to the period covered by

this report;

3. Based on my knowledge, the financial statements, and other financial information included in

this report, fairly present in all material respects the financial condition, results of operations,

changes in net assets, and cash flows (if the financial statements are required to include a

statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and

maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the

Investment Company Act of 1940) and internal control over financial reporting (as defined in

Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure

controls and procedures to be designed under our supervision, to ensure that

material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly

during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal

control over financial reporting to be designed under our supervision, to provide

reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures

and presented in this report our conclusions about the effectiveness of the

disclosure controls and procedures, as of a date within 90 days prior to the filing

date of this report based on such evaluation; and

(d)

Disclosed in this report any change 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 control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and

the audit committee of the registrant’s board of directors (or persons performing the equivalent

functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of

internal control over financial reporting which are reasonably likely to adversely

affect the registrant’s ability to record, process, summarize, and report financial

information; and

(b)

Any fraud, whether or not material, that involves management or other employees

who have a significant role in the registrant’s internal control over financial

reporting.

Date: March 10, 2008

/s/ Carl G. Verboncoeur

Carl G. Verboncoeur,

President

EX.-12(a)(2)(ii)

CERTIFICATION

I, Nick Bonos, certify that:

1. I have reviewed this report on Form N-CSR of Rydex Variable Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or

omit to state a material fact necessary to make the statements made, in light of the circumstances

under which such statements were made, not misleading with respect to the period covered by

this report;

3. Based on my knowledge, the financial statements, and other financial information included in

this report, fairly present in all material respects the financial condition, results of operations,

changes in net assets, and cash flows (if the financial statements are required to include a

statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and

maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the

Investment Company Act of 1940) and internal control over financial reporting (as defined in

Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure

controls and procedures to be designed under our supervision, to ensure that

material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly

during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal

control over financial reporting to be designed under our supervision, to provide

reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with

generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures

and presented in this report our conclusions about the effectiveness of the

disclosure controls and procedures, as of a date within 90 days prior to the filing

date of this report based on such evaluation; and

(d)

Disclosed in this report any change 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 control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and

the audit committee of the registrant’s board of directors (or persons performing the equivalent

functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of

internal control over financial reporting which are reasonably likely to adversely

affect the registrant’s ability to record, process, summarize, and report financial

information; and

(b)

Any fraud, whether or not material, that involves management or other employees

who have a significant role in the registrant’s internal control over financial

reporting.

Date: March 10, 2008

/s/ Nick Bonos

Nick Bonos,

Vice President and Treasurer

EX. 12(b)(i)

CERTIFICATION

I, Carl G. Verboncoeur, President of Rydex Variable Trust (the “Trust”), certify that:

1.

The Form N-CSR of the Trust (the “Report”) fully complies with the requirements

of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the

financial condition and results of operations of the Trust.

A signed original of this written statement required by Section 906 has been provided to the

Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission

or its staff upon request.

Dated: March 10, 2008

/s/Carl G. Verboncoeur

Carl G. Verboncoeur,

President

EX. 12(b)(ii)

CERTIFICATION

I, Nick Bonos, Vice President and Treasurer of Rydex Variable Trust (the “Trust”), certify that:

1.

The Form N-CSR of the Trust (the “Report”) fully complies with the requirements

of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

The information contained in the Report fairly presents, in all material respects, the

financial condition and results of operations of the Trust.

A signed original of this written statement required by Section 906 has been provided to the

Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission

or its staff upon request.

Dated: March 10, 2008

/s/ Nick Bonos

Nick Bonos,

Vice President and Treasurer

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)

Rydex Variable Trust

By (Signature and Title)*

/s/ Carl G. Verboncoeur

Carl G. Verboncoeur, President

Date

March 10, 2008

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.

By (Signature and Title)*

/s/ Carl G. Verboncoeur

Carl G. Verboncoeur, President

Date

March 10, 2008

By (Signature and Title)*

/s/ Nick Bonos

Nick Bonos, Vice President and Treasurer

Date

March 10, 2008

* Print the name and title of each signing officer under his or her signature.

EX-99

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EX-99

44190_Rydex_VA_Alt_Strategy_Complete

EX-99

44189_VA_Benchmark_AR_Complete

EX-99

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EX-99

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EX-99.CODE ETH

ex99_code_of_ethics