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)

805 King Farm Boulevard, Suite 600
Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Richard M. Goldman
Rydex Variable Trust
805 King Farm Boulevard, Suite 600
Rockville, Maryland 20850

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-301-296-5100

Date of fiscal year end: December 31

Date of reporting period: December 31, 2010

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.

TABLE OF CONTENTS

	Item 1. Reports to Stockholders
	Item 2. Code of Ethics
	Item 3. Audit Committee Financial Expert
	Item 4. Principal Accountant Fees and Services
	Item 5. Audit Committee of Listed Registrants
	Item 6. Investments
	Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
	Item 8. Portfolio Managers of Closed-End Management Investment Companies
	Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
	Item 10. Submission of Matters to a Vote of Security Holders
	Item 11. Controls and Procedures
	Item 12. Exhibits
SIGNATURES
EX-99.CODE ETH
EX-99.CERT
EX-99.906CERT

Item 1. Reports to Stockholders.

This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

Distributed by Rydex Distributors, LLC.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS	2
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	4
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
NOVA FUND	8
INVERSE S&P 500 STRATEGY FUND	18
NASDAQ-100® FUND	23
INVERSE NASDAQ-100® STRATEGY FUND	29
S&P 500 2x STRATEGY FUND	34
NASDAQ-100® 2x STRATEGY FUND	44
MID-CAP 1.5x STRATEGY FUND	50
INVERSE MID-CAP STRATEGY FUND	59
RUSSELL 2000® 2x STRATEGY FUND	64
RUSSELL 2000® 1.5x STRATEGY FUND	87
INVERSE RUSSELL 2000® STRATEGY FUND	112
DOW 2x STRATEGY FUND	117
INVERSE DOW 2x STRATEGY FUND	122
S&P 500 PURE GROWTH FUND	127
S&P 500 PURE VALUE FUND	133
S&P MIDCAP 400 PURE GROWTH FUND	139
S&P MIDCAP 400 PURE VALUE FUND	145
S&P SMALLCAP 600 PURE GROWTH FUND	151
S&P SMALLCAP 600 PURE VALUE FUND	157
EUROPE 1.25x STRATEGY FUND	163
JAPAN 2x STRATEGY FUND	169
STRENGTHENING DOLLAR 2x STRATEGY FUND	174
WEAKENING DOLLAR 2x STRATEGY FUND	179
REAL ESTATE FUND	184
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	190
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	195
U.S. GOVERNMENT MONEY MARKET FUND	200
NOTES TO FINANCIAL STATEMENTS	205
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	220
OTHER INFORMATION	221
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	223

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LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

The U.S. economy continued a second year of recovery in 2010, but soft employment and housing markets combined to keep growth tepid. The consensus forecast for U.S. GDP growth was 2.8%, but a consumer spending rally may be needed for it to do better in 2011. Along with better economic reports on retail sales and jobless claims late in 2010, passage of federal legislation to extend Bush-era tax cuts and roll out new stimulus measures boosted equity markets, and prompted many economists to raise growth forecasts for 2011 to 3.5% or higher. Markets were also affected by a change in control of the House of Representatives and a renewed focus on cutting government spending and dealing with the budget deficit.

The U.S. Federal Reserve was responsible for much of the investor optimism that flowed through 2010, slowed only at mid-year by debt problems in Europe and the fading effects of U.S. government stimulus spending that played into fears of a double-dip recession. Concerns that the economy was not growing fast enough to lower an unemployment rate seemingly stuck at more than 9% led the U.S. central bank to signal in August that it would embark on a second round of bond buying in an attempt to keep long-term rates low enough to entice borrowers and spur economic activity.

Although critics said such quantitative easing could flame inflation or lead to another asset bubble, the expectation of up to $600 billion in purchases corresponded with a third-quarter stock-market rally, which picked up more steam after the purchases actually began in November. Inflation turned out to be tame in 2010, with prices rising just 1.1%.

Government efforts to support the economy were a plug for stocks in 2010, as markets were carried to highs last seen more than two years ago—just before the collapse of Lehman Brothers. U.S. equity markets were up by double digits in 2010. The NASDAQ Composite Index* led major indices, up 17%, while the Dow Jones Industrial Average^SM Index* and S&P 500^® Index* were up 14% and 15%, respectively. The sweet spot was small cap stocks, often a leader in economic recoveries, and the Russell 2000^® Index* was up 27%. Stocks in the consumer discretionary and industrials sectors, which benefited from exposure to awakening consumers as well as emerging markets and commodities, were up the most, 26% and 23% respectively, while the health care sector provided the weakest return at less than 1%.

Markets around the globe also benefited from the flood of cash unleashed by the U.S. Federal Reserve. Those in many European countries rose despite sovereign debt problems, with the broad STOXX Europe 600 Index* finishing up 9%. Strong economic recovery in Asia benefited markets from Indonesia to South Korea, although the region’s two largest economies, Japan and China, finished the year lower.

Yield-hungry fixed-income investors increasingly took on credit risk over the year, which was reflected in good performance across most sectors. Expectations about too-fast economic growth and possibly a tick up in inflation in the next few quarters prompted a late-year selloff in Treasuries. Although the Fed kept interest rates on hold all year, the yield on Treasuries rose, affecting mortgage rates, which unfortunately came at a time when reports were indicating that house prices continue to fall and a glut of foreclosures may hit the market over the next few years. Still, Treasuries performed well over the year, as fears of a double-dip recession and European debt woes eased. Among the best returns for the year: bonds in the U.S. intermediate high yield space and emerging market bonds. The Barclays Capital U.S. Aggregate Bond Index* returned about 6.5%.

Driven by demand from China and other fast-growing countries, commodities performed strongly in 2010, as investors appeared to be either encouraged by global recovery or worried about inflation. The Dow Jones-UBS Commodity Index* was up almost 17%; indicative of the strength of the raw materials rally was a record high price for copper and gold. While the metals and agriculture sub-indices were higher over the year, the energy index was lower. Oil finished 2010 around $91, rising about 15%. The dollar gained on the euro in 2010, reflecting concern about Europe’s crisis in sovereign debt. The dollar weakened against many other currency counterparts around the world, falling most against the yen, as investors coped with record-low rates by searching for higher-yielding assets.

Many economists are calling for recovery to continue in 2011. Some feel there is a chance the economy could overheat, based on continued Fed intervention, causing a spike in interest rates, choking off

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LETTER TO OUR SHAREHOLDERS (concluded)

recovery. Others view high levels of government and consumer debt as weights that could restrain the expansion, with growth insufficient to bring down unemployment. U.S. consumers are vital to a robust global recovery and their improving household incomes and debt burdens, along with rising global profits, should benefit many global regions. Stronger performance is forecast for emerging markets compared with developed economies, which are still shoring up their finances. In the fixed income market, strong corporate balance sheets and a low default rate should combine to further compress spreads, and position credit to outperform government paper in the year ahead.

Whether helping hedge or augment exposures to the equity or fixed-income markets, or introducing alternative assets and strategies to portfolios for overall diversification¹, our products are designed for a range of investment scenarios. Rydex|SGI is pleased to help investors navigate uncertain markets, and we appreciate the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

¹Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

*Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

NASDAQ Composite Index — a capitalization-weighted index of more than 3,000 companies listed on the NASDAQ Stock Market.

The Dow Jones Industrial Average Index (DJIA) — a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

The Russell 2000^® Index — measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large-, mid- and small-capitalization companies across 18 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The U.S. Aggregate rolls up into other Barclays Capital flagship indices such as the multi-currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt.

The Dow Jones-UBS Commodity Index aims to provide broadly diversified representation of commodity markets as an asset class. The index is made up of exchange-traded futures on physical commodities. The index represents 19 commodities, which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

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A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Rydex Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0%—in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index		Index			Fund					Fund
	Level		Performance			Expectation			Fund NAV		Performance			Assessment
Start		100							$	10.00
Day 1		106		6.0	%		9.0	%	$	10.90		9.0	%	In line
Day 2		99		-6.6	%		-9.9	%	$	9.82		-9.9	%	In line
Cumulative				-1.0	%		-1.5	%				-1.8	%		-0.3	%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

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ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)
December 31, 2010

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2010 and ending December 31, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

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ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

							Beginning		Ending		Expenses
	Expense			Fund			Account Value		Account Value		Paid During
	Ratio1			Return			June 30, 2010		December 31, 2010		Period2
Table 1. Based on actual Fund return3
Nova Fund		1.60	%		34.92	%	$	1,000.00	$	1,349.22	$	9.47
Inverse S&P 500 Strategy Fund		1.74	%		(20.52	%)		1,000.00		794.76		7.87
NASDAQ-100® Fund		1.63	%		27.00	%		1,000.00		1,269.98		9.33
Inverse NASDAQ-100® Strategy Fund		1.77	%		(23.56	%)		1,000.00		764.40		7.87
S&P 500 2x Strategy Fund		1.75	%		47.98	%		1,000.00		1,479.81		10.94
NASDAQ-100® 2x Strategy Fund		1.79	%		59.80	%		1,000.00		1,598.04		11.72
Mid-Cap 1.5x Strategy Fund		1.76	%		43.31	%		1,000.00		1,433.05		10.79
Inverse Mid-Cap Strategy Fund		1.74	%		(24.19	%)		1,000.00		758.12		7.71
Russell 2000® 2x Strategy Fund		1.77	%		61.02	%		1,000.00		1,610.24		11.65
Russell 2000® 1.5x Strategy Fund		1.78	%		44.79	%		1,000.00		1,447.93		10.98
Inverse Russell 2000® Strategy Fund		1.75	%		(25.81	%)		1,000.00		741.87		7.68
Dow 2x Strategy Fund		1.77	%		41.22	%		1,000.00		1,412.21		10.76
Inverse Dow 2x Strategy Fund		1.77	%		(33.37	%)		1,000.00		666.34		7.43
S&P 500 Pure Growth Fund		1.61	%		34.28	%		1,000.00		1,342.78		9.51
S&P 500 Pure Value Fund		1.60	%		21.55	%		1,000.00		1,215.46		8.93
S&P MidCap 400 Pure Growth Fund		1.61	%		36.88	%		1,000.00		1,368.84		9.61
S&P MidCap 400 Pure Value Fund		1.60	%		25.52	%		1,000.00		1,255.20		9.09
S&P SmallCap 600 Pure Growth Fund		1.61	%		27.60	%		1,000.00		1,275.95		9.24
S&P SmallCap 600 Pure Value Fund		1.60	%		28.05	%		1,000.00		1,280.51		9.20
Europe 1.25x Strategy Fund		1.75	%		26.14	%		1,000.00		1,261.45		9.97
Japan 2x Strategy Fund		1.59	%		39.82	%		1,000.00		1,398.18		9.61
Strengthening Dollar 2x Strategy Fund		1.73	%		(18.69	%)		1,000.00		813.12		7.91
Weakening Dollar 2x Strategy Fund		1.73	%		17.66	%		1,000.00		1,176.61		9.49
Real Estate Fund		1.68	%		20.59	%		1,000.00		1,205.89		9.34
Government Long Bond 1.2x Strategy Fund		1.28	%		(7.69	%)		1,000.00		923.11		6.20
Inverse Government Long Bond Strategy Fund		5.20	%		4.04	%		1,000.00		1,040.41		26.74
U.S. Government Money Market Fund		0.21	%		0.01	%		1,000.00		1,000.08		1.06

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ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

							Beginning		Ending		Expenses
	Expense			Fund			Account Value		Account Value		Paid During
	Ratio1			Return			June 30, 2010		December 31, 2010		Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund		1.60	%		5.00	%	$	1,000.00	$	1,017.14	$	8.13
Inverse S&P 500 Strategy Fund		1.74	%		5.00	%		1,000.00		1,016.43		8.84
NASDAQ-100® Fund		1.63	%		5.00	%		1,000.00		1,016.99		8.29
Inverse NASDAQ-100® Strategy Fund		1.77	%		5.00	%		1,000.00		1,016.28		9.00
S&P 500 2x Strategy Fund		1.75	%		5.00	%		1,000.00		1,016.38		8.89
NASDAQ-100® 2x Strategy Fund		1.79	%		5.00	%		1,000.00		1,016.18		9.10
Mid-Cap 1.5x Strategy Fund		1.76	%		5.00	%		1,000.00		1,016.33		8.94
Inverse Mid-Cap Strategy Fund		1.74	%		5.00	%		1,000.00		1,016.43		8.84
Russell 2000® 2x Strategy Fund		1.77	%		5.00	%		1,000.00		1,016.28		9.00
Russell 2000® 1.5x Strategy Fund		1.78	%		5.00	%		1,000.00		1,016.23		9.05
Inverse Russell 2000® Strategy Fund		1.75	%		5.00	%		1,000.00		1,016.38		8.89
Dow 2x Strategy Fund		1.77	%		5.00	%		1,000.00		1,016.28		9.00
Inverse Dow 2x Strategy Fund		1.77	%		5.00	%		1,000.00		1,016.28		9.00
S&P 500 Pure Growth Fund		1.61	%		5.00	%		1,000.00		1,017.09		8.19
S&P 500 Pure Value Fund		1.60	%		5.00	%		1,000.00		1,017.14		8.13
S&P MidCap 400 Pure Growth Fund		1.61	%		5.00	%		1,000.00		1,017.09		8.19
S&P MidCap 400 Pure Value Fund		1.60	%		5.00	%		1,000.00		1,017.14		8.13
S&P SmallCap 600 Pure Growth Fund		1.61	%		5.00	%		1,000.00		1,017.09		8.19
S&P SmallCap 600 Pure Value Fund		1.60	%		5.00	%		1,000.00		1,017.14		8.13
Europe 1.25x Strategy Fund		1.75	%		5.00	%		1,000.00		1,016.38		8.89
Japan 2x Strategy Fund		1.59	%		5.00	%		1,000.00		1,017.19		8.08
Strengthening Dollar 2x Strategy Fund		1.73	%		5.00	%		1,000.00		1,016.48		8.79
Weakening Dollar 2x Strategy Fund		1.73	%		5.00	%		1,000.00		1,016.48		8.79
Real Estate Fund		1.68	%		5.00	%		1,000.00		1,016.74		8.54
Government Long Bond 1.2x Strategy Fund		1.28	%		5.00	%		1,000.00		1,018.75		6.51
Inverse Government Long Bond Strategy Fund		5.20	%		5.00	%		1,000.00		998.99		26.20
U.S. Government Money Market Fund		0.21	%		5.00	%		1,000.00		1,024.15		1.07

1	This ratio represents annualized Total Expenses, which include interest and dividend expense from securities sold short. Excluding short interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 3.46% lower.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.
3	Actual cumulative return at net asset value for the period June 30, 2010 to December 31, 2010.

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PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

NOVA FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P 500^® Index (the “underlying index”).

Inception: May 7, 1997

For the one-year period ended December 31, 2010, Nova Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the S&P 500 Index. Nova Fund returned 19.97%, while the S&P 500 Index returned 15.06% over the same time period.

Consumer Discretionary (2.73%), Industrials (2.68%) and Energy (2.23%) provided the most performance to the index during the year. Utilities (0.24%), Health Care (0.33%) and Telecommunication Services (0.61%) provided the least performance to the index during the year.

Apple, Inc., General Electric Co. and Citigroup, Inc. were among the stocks which provided the most performance to the index during the year. Microsoft Corp., Hewlett-Packard Co. and Cisco Systems, Inc. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
December 31, 2000 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

	1 Year			5 Year			10 Year
NOVA FUND		19.97	%		-2.25	%		-3.13	%
S&P 500 INDEX		15.06	%		2.29	%		1.41	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.	2.4	%
Apple, Inc.	1.9	%
Microsoft Corp.	1.4	%
General Electric Co.	1.3	%
Chevron Corp.	1.2	%
International Business Machines Corp.	1.2	%
Procter & Gamble Co.	1.2	%
AT&T, Inc.	1.1	%
Johnson & Johnson	1.1	%
JPMorgan Chase & Co.	1.1	%
Top Ten Total	13.9	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

8       the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

NOVA FUND

	Shares		Value
COMMON STOCKS† - 73.6%
INFORMATION TECHNOLOGY - 13.7%
Apple, Inc.*		1,754	$	565,770
Microsoft Corp.		14,380		401,490
International Business Machines Corp.		2,368		347,528
Google, Inc. — Class A*		480		285,106
Oracle Corp.		7,390		231,307
Intel Corp.		10,647		223,906
Cisco Systems, Inc.*		10,580		214,033
Hewlett-Packard Co.		4,330		182,293
QUALCOMM, Inc.		3,090		152,924
EMC Corp.*		3,930		89,997
Texas Instruments, Inc.		2,240		72,800
Visa, Inc. — Class A		930		65,453
eBay, Inc.*		2,190		60,948
Corning, Inc.		2,978		57,535
Automatic Data Processing, Inc.		940		43,503
Dell, Inc.*		3,210		43,495
Cognizant Technology Solutions Corp. — Class A*		580		42,508
Yahoo!, Inc.*		2,490		41,409
Motorola Solutions, Inc.*		4,485		40,679
Mastercard, Inc. — Class A		180		40,340
NetApp, Inc.*		690		37,922
Broadcom Corp. — Class A		870		37,889
Juniper Networks, Inc.*		1,000		36,920
Applied Materials, Inc.		2,550		35,827
Xerox Corp.		2,648		30,505
Salesforce.com, Inc.*		230		30,360
Adobe Systems, Inc.*		970		29,857
Intuit, Inc.*		530		26,129
Symantec Corp.*		1,480		24,775
Citrix Systems, Inc.*		360		24,628
Western Union Co.		1,250		23,213
SanDisk Corp.*		450		22,437
Analog Devices, Inc.		570		21,472
Altera Corp.		598		21,277
F5 Networks, Inc.*		150		19,524
Paychex, Inc.		610		18,855
CA, Inc.		730		17,841
Amphenol Corp. — Class A		330		17,417
NVIDIA Corp.*		1,113		17,140
Akamai Technologies, Inc.*		350		16,468
Red Hat, Inc.*		360		16,434
Autodesk, Inc.*		430		16,426
Fiserv, Inc.*		280		16,397
BMC Software, Inc.*		340		16,028
Western Digital Corp.*		440		14,916
Linear Technology Corp.		430		14,874
Computer Sciences Corp.		290		14,384
Xilinx, Inc.		490		14,200
Fidelity National Information Services, Inc.		510		13,969
McAfee, Inc.*		290		13,430
Teradata Corp.*		320		13,171
Micron Technology, Inc.*		1,639		13,145
KLA-Tencor Corp.		320		12,365
Microchip Technology, Inc.		360		12,316
Harris Corp.		240		10,872
VeriSign, Inc.		330		10,781
Electronic Arts, Inc.*		629		10,303
Advanced Micro Devices, Inc.*		1,093		8,941
FLIR Systems, Inc.*		300		8,925
SAIC, Inc.*		557		8,834
Jabil Circuit, Inc.		370		7,433
LSI Corp.*		1,180		7,068
National Semiconductor Corp.		458		6,302
JDS Uniphase Corp.*		430		6,226
Monster Worldwide, Inc.*		250		5,907
Molex, Inc.		260		5,907
Novellus Systems, Inc.*		170		5,494
Lexmark International, Inc. — Class A*		146		5,084
Teradyne, Inc.*		350		4,914
Compuware Corp.*		420		4,901
MEMC Electronic Materials, Inc.*		426		4,797
Total System Services, Inc.		310		4,768
Tellabs, Inc.		700		4,746
Novell, Inc.*		666		3,943
QLogic Corp.*		200		3,404
Total Information Technology				4,055,085
FINANCIALS - 11.8%
JPMorgan Chase & Co.		7,460		316,453
Wells Fargo & Co.		10,018		310,458
Berkshire Hathaway, Inc. — Class B*		3,297		264,123
Citigroup, Inc.*		55,470		262,373
Bank of America Corp.		19,260		256,928
Goldman Sachs Group, Inc.		980		164,797
U.S. Bancorp		3,657		98,629
American Express Co.		2,000		85,840
Morgan Stanley		2,890		78,637
MetLife, Inc.		1,730		76,881
Bank of New York Mellon Corp.		2,373		71,665
PNC Financial Services Group, Inc.		1,000		60,720
Simon Property Group, Inc.		560		55,714
Prudential Financial, Inc.		930		54,600
Aflac, Inc.		900		50,787
Travelers Companies, Inc.		880		49,025
State Street Corp.		960		44,486
CME Group, Inc. — Class A		127		40,862
ACE Ltd.		650		40,462
Capital One Financial Corp.		870		37,027
BB&T Corp.		1,320		34,703
Chubb Corp.		580		34,591
Allstate Corp.		1,030		32,836
Charles Schwab Corp.		1,887		32,287
T. Rowe Price Group, Inc.		490		31,625
Franklin Resources, Inc.		280		31,139

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   9

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

NOVA FUND

	Shares		Value
AON Corp.		630	$	28,986
Marsh & McLennan Companies, Inc.		1,040		28,434
Equity Residential		540		28,053
SunTrust Banks, Inc.		950		28,035
Public Storage		270		27,383
Ameriprise Financial, Inc.		470		27,048
Vornado Realty Trust		310		25,832
HCP, Inc.		700		25,753
Northern Trust Corp.		460		25,489
Progressive Corp.		1,270		25,235
Loews Corp.		600		23,346
Boston Properties, Inc.		266		22,903
Host Hotels & Resorts, Inc.		1,268		22,659
Hartford Financial Services Group, Inc.		850		22,517
Fifth Third Bancorp		1,520		22,314
Invesco Ltd.		880		21,173
M&T Bank Corp.		230		20,021
Principal Financial Group, Inc.		610		19,862
Weyerhaeuser Co.		1,020		19,309
Discover Financial Services		1,036		19,197
AvalonBay Communities, Inc.		160		18,008
Regions Financial Corp.		2,400		16,800
Lincoln National Corp.		600		16,686
IntercontinentalExchange, Inc.*		140		16,681
Ventas, Inc.		300		15,744
ProLogis		1,090		15,740
American International Group, Inc.*		270		15,557
NYSE Euronext		500		14,990
KeyCorp		1,680		14,868
Unum Group		610		14,774
Comerica, Inc.		340		14,362
Kimco Realty Corp.		780		14,071
XL Group plc — Class A		620		13,528
Health Care REIT, Inc.		280		13,339
Hudson City Bancorp, Inc.		1,013		12,906
Genworth Financial, Inc. — Class A*		930		12,220
SLM Corp.*		930		11,709
Plum Creek Timber Company, Inc.		310		11,609
Huntington Bancshares, Inc.		1,650		11,336
CB Richard Ellis Group, Inc. — Class A*		550		11,264
Leucadia National Corp.		379		11,059
Legg Mason, Inc.		290		10,518
Moody’s Corp.		390		10,351
Cincinnati Financial Corp.		310		9,824
People’s United Financial, Inc.		700		9,807
Torchmark Corp.		150		8,961
Zions Bancorp.		340		8,238
Assurant, Inc.		200		7,704
Marshall & Ilsley Corp.		1,014		7,017
NASDAQ OMX Group, Inc.*		270		6,402
E*Trade Financial Corp.*		380		6,080
Apartment Investment & Management Co. — Class A		220		5,685
First Horizon National Corp.*		450		5,302
Janus Capital Group, Inc.		350		4,539
Federated Investors, Inc. — Class B		170		4,449
Total Financials				3,503,325
ENERGY - 8.9%
Exxon Mobil Corp.		9,630		704,146
Chevron Corp.		3,839		350,309
Schlumberger Ltd.		2,606		217,601
ConocoPhillips		2,808		191,225
Occidental Petroleum Corp.		1,550		152,055
Apache Corp.		730		87,038
Anadarko Petroleum Corp.		950		72,352
Halliburton Co.		1,737		70,922
Devon Energy Corp.		820		64,378
National Oilwell Varco, Inc.		800		53,800
Marathon Oil Corp.		1,360		50,361
Baker Hughes, Inc.		820		46,879
EOG Resources, Inc.		490		44,791
Hess Corp.		570		43,628
Chesapeake Energy Corp.		1,254		32,491
Peabody Energy Corp.		507		32,438
Spectra Energy Corp.		1,240		30,988
Noble Energy, Inc.		330		28,406
Williams Companies, Inc.		1,120		27,686
Murphy Oil Corp.		370		27,584
Valero Energy Corp.		1,080		24,970
Southwestern Energy Co.*		660		24,704
Cameron International Corp.*		460		23,336
Consol Energy, Inc.		430		20,958
FMC Technologies, Inc.*		230		20,449
Pioneer Natural Resources Co.		220		19,100
Newfield Exploration Co.*		260		18,749
El Paso Corp.		1,340		18,438
Denbury Resources, Inc.*		760		14,508
Range Resources Corp.		310		13,944
Nabors Industries Ltd.*		540		12,668
EQT Corp.		280		12,555
QEP Resources, Inc.		340		12,345
Massey Energy Co.		200		10,730
Helmerich & Payne, Inc.		200		9,696
Sunoco, Inc.		230		9,271
Diamond Offshore Drilling, Inc.		129		8,626
Rowan Companies, Inc.*		236		8,239
Cabot Oil & Gas Corp.		196		7,419
Tesoro Corp.		270		5,006
Total Energy				2,624,789
INDUSTRIALS - 8.1%
General Electric Co.		20,350		372,202
United Technologies Corp.		1,760		138,547

10   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

NOVA FUND

	Shares		Value
United Parcel Service, Inc. — Class B		1,890	$	137,176
3M Co.		1,367		117,972
Caterpillar, Inc.		1,207		113,048
Boeing Co.		1,400		91,364
Union Pacific Corp.		940		87,100
Emerson Electric Co.		1,440		82,325
Honeywell International, Inc.		1,493		79,368
Deere & Co.		810		67,271
FedEx Corp.		600		55,806
General Dynamics Corp.		720		51,091
Illinois Tool Works, Inc.		953		50,890
Danaher Corp.		1,020		48,113
CSX Corp.		710		45,873
Norfolk Southern Corp.		690		43,346
Cummins, Inc.		380		41,804
PACCAR, Inc.		700		40,194
Lockheed Martin Corp.		560		39,150
Tyco International Ltd.		930		38,539
Precision Castparts Corp.		270		37,587
Northrop Grumman Corp.		560		36,277
Waste Management, Inc.		910		33,552
Raytheon Co.		700		32,438
Eaton Corp.		317		32,179
Ingersoll-Rand plc		620		29,196
Parker Hannifin Corp.		310		26,753
CH Robinson Worldwide, Inc.		317		25,420
Fluor Corp.		340		22,528
Expeditors International of Washington, Inc.		410		22,386
Goodrich Corp.		240		21,137
Dover Corp.		360		21,042
Rockwell Automation, Inc.		270		19,362
Southwest Airlines Co.		1,434		18,613
ITT Corp.		350		18,239
Republic Services, Inc. — Class A		590		17,617
Rockwell Collins, Inc.		300		17,478
Fastenal Co.		280		16,775
L-3 Communications Holdings, Inc.		220		15,508
WW Grainger, Inc.		110		15,192
Roper Industries, Inc.		177		13,528
Flowserve Corp.		110		13,114
First Solar, Inc.*		100		13,014
Stericycle, Inc.*		160		12,947
Textron, Inc.		520		12,293
Jacobs Engineering Group, Inc.*		238		10,912
Pall Corp.		218		10,808
Iron Mountain, Inc.		380		9,504
Pitney Bowes, Inc.		390		9,430
Avery Dennison Corp.		210		8,891
Masco Corp.		680		8,609
Robert Half International, Inc.		280		8,568
Equifax, Inc.		240		8,544
Dun & Bradstreet Corp.		100		8,209
Quanta Services, Inc.*		410		8,167
RR Donnelley & Sons Co.		390		6,813
Cintas Corp.		240		6,710
Snap-On, Inc.		110		6,224
Ryder System, Inc.		100		5,264
Total Industrials				2,402,007
HEALTH CARE - 8.0%
Johnson & Johnson		5,237		323,908
Pfizer, Inc.		15,300		267,903
Merck & Company, Inc.		5,880		211,915
Abbott Laboratories		2,950		141,334
Amgen, Inc.*		1,800		98,820
Bristol-Myers Squibb Co.		3,270		86,590
Medtronic, Inc.		2,060		76,405
UnitedHealth Group, Inc.		2,100		75,831
Eli Lilly & Co.		1,937		67,872
Baxter International, Inc.		1,110		56,188
Gilead Sciences, Inc.*		1,549		56,136
Express Scripts, Inc. — Class A*		1,011		54,644
Celgene Corp.*		900		53,226
Medco Health Solutions, Inc.*		810		49,629
WellPoint, Inc.*		750		42,645
Thermo Fisher Scientific, Inc.*		760		42,074
Allergan, Inc.		590		40,515
Becton Dickinson and Co.		440		37,189
Stryker Corp.		650		34,905
Genzyme Corp.*		490		34,888
McKesson Corp.		480		33,782
Biogen Idec, Inc.*		458		30,709
St. Jude Medical, Inc.*		650		27,787
Agilent Technologies, Inc.*		660		27,344
Cardinal Health, Inc.		670		25,668
Aetna, Inc.		760		23,188
Boston Scientific Corp.*		2,900		21,953
Intuitive Surgical, Inc.*		82		21,135
Zimmer Holdings, Inc.*		380		20,398
Life Technologies Corp.*		360		19,980
CIGNA Corp.		520		19,063
AmerisourceBergen Corp. — Class A		530		18,084
Hospira, Inc.*		320		17,821
Forest Laboratories, Inc.*		550		17,589
Mylan, Inc.*		830		17,538
Humana, Inc.*		320		17,517
Laboratory Corporation of America Holdings*		190		16,705
CR Bard, Inc.		180		16,519
Varian Medical Systems, Inc.*		230		15,934
Quest Diagnostics, Inc.		270		14,572
Cerner Corp.*		140		13,264
Waters Corp.*		170		13,211
DaVita, Inc.*		190		13,203
Watson Pharmaceuticals, Inc.*		240		12,396
CareFusion Corp.*		430		11,051
DENTSPLY International, Inc.		270		9,226

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   11

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
NOVA FUND

	Shares		Value
Cephalon, Inc.*		140	$	8,641
Coventry Health Care, Inc.*		280		7,392
Tenet Healthcare Corp.*		930		6,222
PerkinElmer, Inc.		230		5,939
Patterson Companies, Inc.		180		5,513
Total Health Care				2,381,961
CONSUMER STAPLES - 7.8%
Procter & Gamble Co.		5,350		344,166
Coca-Cola Co.		4,429		291,295
Philip Morris International, Inc.		3,460		202,514
Wal-Mart Stores, Inc.		3,740		201,698
PepsiCo, Inc.		3,030		197,950
Kraft Foods, Inc. — Class A		3,342		105,307
Altria Group, Inc.		3,987		98,160
CVS Caremark Corp.		2,590		90,054
Colgate-Palmolive Co.		920		73,940
Walgreen Co.		1,770		68,959
Costco Wholesale Corp.		830		59,934
Kimberly-Clark Corp.		780		49,171
General Mills, Inc.		1,220		43,420
Archer-Daniels-Midland Co.		1,220		36,698
Sysco Corp.		1,120		32,928
HJ Heinz Co.		610		30,171
Kroger Co.		1,220		27,279
Kellogg Co.		489		24,978
Mead Johnson Nutrition Co. — Class A		390		24,278
Avon Products, Inc.		820		23,829
Lorillard, Inc.		287		23,551
Sara Lee Corp.		1,220		21,362
Reynolds American, Inc.		652		21,268
ConAgra Foods, Inc.		840		18,967
Estee Lauder Companies, Inc. — Class A		220		17,754
Clorox Co.		269		17,022
Coca-Cola Enterprises, Inc.		650		16,270
Safeway, Inc.		710		15,968
Dr Pepper Snapple Group, Inc.		430		15,119
JM Smucker Co.		230		15,100
Molson Coors Brewing Co. — Class B		299		15,007
Whole Foods Market, Inc.		280		14,165
Hershey Co.		300		14,145
Brown-Forman Corp. — Class B		200		13,924
Campbell Soup Co.		370		12,858
McCormick & Company, Inc.		246		11,446
Tyson Foods, Inc. — Class A		570		9,815
Constellation Brands, Inc. — Class A*		340		7,531
Hormel Foods Corp.		130		6,664
SUPERVALU, Inc.		410		3,948
Dean Foods Co.*		350		3,094
Total Consumer Staples				2,321,707
CONSUMER DISCRETIONARY - 7.8%
McDonald’s Corp.		2,020		155,055
Walt Disney Co.		3,620		135,786
Amazon.com, Inc.*		680		122,400
Ford Motor Co.*		7,150		120,048
Comcast Corp. — Class A		5,330		117,100
Home Depot, Inc.		3,130		109,738
Target Corp.		1,350		81,176
Time Warner, Inc.		2,120		68,200
Lowe’s Companies, Inc.		2,640		66,211
DIRECTV — Class A*		1,590		63,489
News Corp. — Class A		4,360		63,482
NIKE, Inc. — Class B		730		62,357
Johnson Controls, Inc.		1,287		49,163
Starbucks Corp.		1,420		45,625
Viacom, Inc. — Class B		1,149		45,512
Time Warner Cable, Inc. — Class A		677		44,702
Yum! Brands, Inc.		890		43,654
Carnival Corp.		820		37,810
Priceline.com, Inc.*		90		35,960
TJX Companies, Inc.		760		33,736
Coach, Inc.		570		31,527
Staples, Inc.		1,380		31,423
Kohl’s Corp.*		560		30,430
Omnicom Group, Inc.		580		26,564
CBS Corp. — Class B		1,300		24,765
Bed Bath & Beyond, Inc.*		487		23,936
Marriott International, Inc. — Class A		553		22,972
Discovery Communications, Inc. — Class A*		540		22,518
Starwood Hotels & Resorts Worldwide, Inc.		360		21,881
Best Buy Company, Inc.		630		21,603
McGraw-Hill Companies, Inc.		590		21,482
Stanley Black & Decker, Inc.		320		21,398
Macy’s, Inc.		808		20,442
The Gap, Inc.		840		18,598
Mattel, Inc.		690		17,547
Fortune Brands, Inc.		290		17,473
O’Reilly Automotive, Inc.*		270		16,313
Limited Brands, Inc.		510		15,672
Harley-Davidson, Inc.		450		15,601
Cablevision Systems Corp. — Class A		460		15,566
Genuine Parts Co.		300		15,402
Tiffany & Co.		240		14,945
VF Corp.		170		14,651
Ross Stores, Inc.		230		14,548
JC Penney Company, Inc.		450		14,540
Wynn Resorts Ltd.		140		14,538
NetFlix, Inc.*		80		14,056
CarMax, Inc.*		430		13,708

12   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

NOVA FUND

	Shares		Value
AutoZone, Inc.*		50	$	13,630
Nordstrom, Inc.		320		13,562
Whirlpool Corp.		150		13,324
Polo Ralph Lauren Corp. — Class A		117		12,978
Hasbro, Inc.		260		12,267
Darden Restaurants, Inc.		260		12,074
Family Dollar Stores, Inc.		240		11,930
International Game Technology		570		10,083
Newell Rubbermaid, Inc.		550		9,999
Wyndham Worldwide Corp.		330		9,887
Interpublic Group of Companies, Inc.*		930		9,877
Abercrombie & Fitch Co. — Class A		170		9,797
Expedia, Inc.		390		9,785
Apollo Group, Inc. — Class A*		240		9,478
Urban Outfitters, Inc.*		250		8,952
Scripps Networks Interactive, Inc. — Class A		170		8,797
H&R Block, Inc.		590		7,027
Gannett Company, Inc.		460		6,941
GameStop Corp. — Class A*		290		6,635
DR Horton, Inc.		538		6,418
Leggett & Platt, Inc.		280		6,373
Harman International Industries, Inc.*		130		6,019
Sears Holdings Corp.*		80		5,900
Lennar Corp. — Class A		300		5,625
DeVry, Inc.		116		5,566
Goodyear Tire & Rubber Co.*		460		5,451
Pulte Group, Inc.*		639		4,805
Washington Post Co. — Class B		10		4,395
Big Lots, Inc.*		140		4,264
RadioShack Corp.		220		4,068
AutoNation, Inc.*		120		3,384
Meredith Corp.		69		2,391
Total Consumer Discretionary				2,316,985
MATERIALS - 2.8%
Freeport-McMoRan Copper & Gold, Inc. — Class B		899		107,961
E. I. du Pont de Nemours & Co.		1,744		86,991
Dow Chemical Co.		2,221		75,825
Monsanto Co.		1,020		71,033
Newmont Mining Co.		940		57,744
Praxair, Inc.		587		56,041
Air Products & Chemicals, Inc.		407		37,017
Alcoa, Inc.		1,950		30,010
Nucor Corp.		600		26,292
PPG Industries, Inc.		310		26,062
International Paper Co.		840		22,882
Ecolab, Inc.		440		22,185
Cliffs Natural Resources, Inc.		256		19,970
CF Industries Holdings, Inc.		140		18,921
United States Steel Co.		270		15,773
Sigma-Aldrich Corp.		230		15,309
Sherwin-Williams Co.		170		14,237
Eastman Chemical Co.		140		11,771
Ball Corp.		170		11,568
FMC Corp.		140		11,185
Vulcan Materials Co.		250		11,090
Allegheny Technologies, Inc.		190		10,484
Owens-Illinois, Inc.*		310		9,517
Airgas, Inc.		140		8,744
MeadWestvaco Corp.		323		8,450
International Flavors & Fragrances, Inc.		150		8,338
Sealed Air Corp.		300		7,635
Bemis Company, Inc.		207		6,761
AK Steel Holding Corp.		210		3,438
Titanium Metals Corp.*		170		2,921
Total Materials				816,155
UTILITIES - 2.4%
Southern Co.		1,595		60,977
Exelon Corp.		1,256		52,300
Dominion Resources, Inc.		1,110		47,419
Duke Energy Corp.		2,530		45,059
NextEra Energy, Inc.		790		41,072
PG&E Corp.		747		35,736
American Electric Power Company, Inc.		920		33,102
Public Service Enterprise Group, Inc.		969		30,824
Consolidated Edison, Inc.		550		27,264
Entergy Corp.		350		24,790
Progress Energy, Inc.		560		24,349
PPL Corp.		924		24,320
Sempra Energy		460		24,141
Edison International		620		23,932
FirstEnergy Corp.		580		21,472
Xcel Energy, Inc.		877		20,653
AES Corp.*		1,260		15,347
DTE Energy Co.		320		14,502
Ameren Corp.		460		12,967
Wisconsin Energy Corp.		220		12,949
CenterPoint Energy, Inc.		807		12,686
Constellation Energy Group, Inc.		380		11,639
Oneok, Inc.		200		11,094
Northeast Utilities		340		10,839
NiSource, Inc.		529		9,321
NRG Energy, Inc.*		470		9,184
SCANA Corp.		220		8,932
CMS Energy Corp.		470		8,742
Pinnacle West Capital Corp.		207		8,580
Pepco Holdings, Inc.		434		7,921
Allegheny Energy, Inc.		320		7,757
TECO Energy, Inc.		410		7,298
Integrys Energy Group, Inc.		146		7,082
Nicor, Inc.		90		4,493
Total Utilities				718,743

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   13

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

NOVA FUND

	Shares		Value
TELECOMMUNICATION SERVICES - 2.3%
AT&T, Inc.		11,291	$	331,729
Verizon Communications, Inc.		5,397		193,105
American Tower Corp. — Class A*		760		39,246
CenturyLink, Inc.		580		26,779
Qwest Communications International, Inc.		3,329		25,334
Sprint Nextel Corp.*		5,697		24,098
Frontier Communications Corp.		1,901		18,497
Windstream Corp.		920		12,825
MetroPCS Communications, Inc.*		500		6,315
Total Telecommunication Services				677,928
Total Common Stocks (Cost $13,153,408)				21,818,685
	Face
	Amount
REPURCHASE AGREEMENTS††,1 - 24.1%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/112	$	3,657,865		3,657,865
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		1,193,373		1,193,373
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		1,142,229		1,142,229
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		1,142,229		1,142,229
Total Repurchase Agreements (Cost $7,135,696)				7,135,696
Total Investments - 97.7% (Cost $20,289,104)			$	28,954,381
Cash & Other Assets, Less Liabilities — 2.3%				689,753
Total Net Assets — 100.0%			$	29,644,134

			Unrealized
	Contracts		Gain
FUTURES CONTRACTS PURCHASED†
March 2011 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $11,669,175)		186	$	120,992
	Units
EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International January 2011 S&P 500 Index Swap, Terminating 01/27/11 (Notional Value $6,167,901)		4,904	$	2,782
Credit Suisse Capital, LLC January 2011 S&P 500 Index Swap, Terminating 01/28/11 (Notional Value $2,439,264)		1,940		1,037
Morgan Stanley Capital Services, Inc. January 2011 S&P 500 Index Swap, Terminating 01/26/11 (Notional Value $2,296,409)		1,826		547
(Total Notional Value $10,903,574)			$	4,366

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

14   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	21,818,685
Repurchase agreements, at value		7,135,696
Total investments		28,954,381
Segregated cash with broker		647,693
Unrealized appreciation on swap agreements		4,366
Receivables:
Swap settlement		2,062
Variation margin		6,726
Fund shares sold		305,935
Dividends		26,258
Interest		21
Total assets		29,947,442
Liabilities:
Payable for:
Fund shares redeemed		236,986
Management fees		19,433
Custodian fees		855
Transfer agent/maintenance fees		6,477
Investor service fees		6,477
Portfolio accounting fees		2,591
Other		30,489
Total liabilities		303,308
Net assets	$	29,644,134
Net assets consist of:
Paid in capital	$	50,929,399
Undistributed net investment income		13,783
Accumulated net realized loss on investments		(30,089,683	)
Net unrealized appreciation on investments		8,790,635
Net assets	$	29,644,134
Capital shares outstanding		404,800
Net asset value per share	$	73.23
Investments, at cost	$	13,153,408
Repurchase agreements, at cost		7,135,696
Total cost	$	20,289,104

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends	$	625,736
Interest		13,909
Total investment income		639,645
Expenses:
Management fees		301,873
Transfer agent and administrative fees		100,624
Investor service fees		100,624
Portfolio accounting fees		40,249
Trustees’ fees*		5,050
Miscellaneous		77,442
Total expenses		625,862
Net investment income		13,783
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,723,028
Equity index swaps		2,415,941
Futures contracts		1,837,860
Net realized gain		6,976,829
Net change in unrealized appreciation (depreciation) on:
Investments		(712,233	)
Equity index swaps		(564,030	)
Futures contracts		74,099
Net change in unrealized appreciation (depreciation)		(1,202,164	)
Net realized and unrealized gain		5,774,665
Net increase in net assets resulting from operations	$	5,788,448

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   15

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	13,783		$	74,019
Net realized gain on investments		6,976,829			1,878,800
Net change in unrealized appreciation (depreciation) on investments		(1,202,164	)		11,132,363
Net increase in net assets resulting from operations		5,788,448			13,085,182
Distributions to shareholders from:
Net investment income		(74,019	)		(406,451	)
Total distributions to shareholders		(74,019	)		(406,451	)
Capital share transactions:
Proceeds from sale of shares		129,840,432			134,124,276
Distributions reinvested		74,019			406,451
Cost of shares redeemed		(156,545,401	)		(131,735,686	)
Net increase (decrease) from capital share transactions		(26,630,950	)		2,795,041
Net increase (decrease) in net assets		(20,916,521	)		15,473,772
Net assets:
Beginning of year		50,560,655			35,086,883
End of year	$	29,644,134		$	50,560,655
Undistributed net investment income at end of year	$	13,783		$	74,019
Capital share activity:
Shares sold		2,067,256			2,782,480	†
Shares issued from reinvestment of distributions		1,089			6,730	†
Shares redeemed		(2,490,178	)		(2,733,641	)†
Net increase (decrease) in shares		(421,833	)		55,569	†

^† Share amounts for the period January 1, 2009 through April 19, 2009 have been restated to reflect a 1:10 reverse share split effective April 20, 2009.

16   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

NOVA FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009c			2008c			2007c			2006c
Per Share Data
Net asset value, beginning of period	$	61.16		$	45.50		$	100.60		$	100.90		$	85.60
Income (loss) from investment operations:
Net investment incomea		.02			.09			.60			1.20			1.10
Net gain (loss) on investments (realized and unrealized)		12.19			16.06			(55.40	)		—			15.40
Total from investment operations		12.21			16.15			(54.80	)		1.20			16.50
Less distributions from:
Net investment income		(.14	)		(.49	)		(.30	)		(1.50	)		(1.20	)
Total distributions		(.14	)		(.49	)		(.30	)		(1.50	)		(1.20	)
Net asset value, end of period	$	73.23		$	61.16		$	45.50		$	100.60		$	100.90
Total Returnb		19.97	%		35.51	%		(54.47	%)		1.13	%		19.27	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	29,644		$	50,561		$	35,087		$	82,191		$	134,477
Ratios to average net assets:
Net investment income		0.03	%		0.19	%		0.75	%		1.12	%		1.18	%
Total expenses		1.55	%		1.55	%		1.52	%		1.46	%		1.48	%
Portfolio turnover rate		58	%		84	%		182	%		94	%		211	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Per share amounts for the period December 31, 2005 — April 19, 2009 have been restated to reflect a 1:10 reverse stock split effective April 20, 2009.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   17

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INVERSE S&P 500 STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P 500 Index (the “underlying index”).

Inception: June 9, 1997

For the one-year period ended December 31, 2010, Inverse S&P 500 Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the S&P 500 Index. Inverse S&P 500 Strategy Fund returned -16.96%, while the S&P 500 Index returned 15.06% over the same time period.

Consumer Discretionary (2.73%), Industrials (2.68%) and Energy (2.23%) provided the most performance to the index during the year. Utilities (0.24%), Health Care (0.33%) and Telecommunication Services (0.61%) provided the least performance to the index during the year.

Apple, Inc., General Electric Co. and Citigroup, Inc. were among the stocks which provided the most performance to the index during the year. Microsoft Corp., Hewlett-Packard Co. and Cisco Systems, Inc. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
December 31, 2000 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

	1 Year			5 Year			10 Year
INVERSE S&P 500 STRATEGY FUND		-16.96	%		-4.82	%		-2.92	%
S&P 500 INDEX		15.06	%		2.29	%		1.41	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as equity index swap agreements and futures contracts.

18   |   the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

INVERSE S&P 500 STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† — 44.5%
Federal Farm Credit Bank1 0.15% due 01/05/11	$	2,000,000	$	1,999,994
Fannie Mae2 0.09% due 01/05/11		2,000,000		1,999,980
Farmer Mac1 0.16% due 01/12/11		2,000,000		1,999,974
Federal Home Loan Bank1 0.17% due 01/10/11		2,000,000		1,999,915
Total Federal Agency Discount Notes (Cost $7,999,763)				7,999,863
WORLD BANK DISCOUNT NOTE†† — 11.1%
World Bank 0.20% due 01/05/11		2,000,000		1,999,994
Total World Bank Discount Note (Cost $1,999,956)				1,999,994
REPURCHASE AGREEMENTS††,3 — 39.2%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/114		3,465,073		3,465,073
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		1,231,225		1,231,225
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		1,178,458		1,178,458
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		1,178,458		1,178,458
Total Repurchase Agreements (Cost $7,053,214)				7,053,214
Total Investments — 94.8% (Cost $17,052,933)			$	17,053,071
Cash & Other Assets, Less Liabilities — 5.2%				932,460
Total Net Assets — 100.0%			$	17,985,531
			Unrealized
	Contracts		Loss
FUTURES CONTRACTS SOLD SHORT†
March 2011 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $1,129,275)		18	$	(1,320	)
	UNITS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Morgan Stanley Capital Services, Inc. January 2011 S&P 500 Index Swap, Terminating 01/26/115 (Notional Value $1,298,829)		1,033	$	(364	)
Goldman Sachs International January 2011 S&P 500 Index Swap, Terminating 01/27/115 (Notional Value $1,471,963)		1,170		(402	)
Credit Suisse Capital, LLC January 2011 S&P 500 Index Swap, Terminating 01/28/115 (Notional Value $14,089,737)		11,203		(4,698	)
(Total Notional Value $16,860,529)			$	(5,464	)

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
5	Total Return based on S&P 500 Index +/- financing at a variable rate.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   19

INVERSE S&P 500 STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	9,999,857
Repurchase agreements, at value		7,053,214
Total investments		17,053,071
Segregated cash with broker		244,347
Receivables:
Fund shares sold		765,272
Interest		21
Total assets		18,062,711
Liabilities:
Unrealized depreciation on swap agreements		5,464
Payable for:
Swap settlement		1,704
Variation margin		225
Fund shares redeemed		271
Management fees		16,499
Custodian fees		605
Transfer agent/maintenance fees		4,583
Investor service fees		4,583
Portfolio accounting fees		1,833
Other		41,413
Total liabilities		77,180
Net assets	$	17,985,531
Net assets consist of:
Paid in capital	$	52,234,922
Accumulated net investment loss		—
Accumulated net realized loss on investments		(34,242,745	)
Net unrealized depreciation on investments		(6,646	)
Net assets	$	17,985,531
Capital shares outstanding		511,525
Net asset value per share	$	35.16
Investments, at cost	$	9,999,719
Repurchase agreements, at cost		7,053,214
Total cost	$	17,052,933

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Interest	$	56,466
Total investment income		56,466
Expenses:
Management fees		347,532
Transfer agent and administrative fees		96,537
Investor service fees		96,537
Portfolio accounting fees		38,614
Trustees’ fees*		4,205
Miscellaneous		73,242
Total expenses		656,667
Net investment loss		(600,201	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Equity index swaps		(11,166,945	)
Futures contracts		(2,996,271	)
Net realized loss		(14,163,216	)
Net change in unrealized appreciation (depreciation) on:
Investments		138
Equity index swaps		298,834
Futures contracts		33,367
Net change in unrealized appreciation (depreciation)		332,339
Net realized and unrealized loss		(13,830,877	)
Net decrease in net assets resulting from operations	$	(14,431,078	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

20   |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE S&P 500 STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(600,201	)	$	(632,570	)
Net realized loss on investments		(14,163,216	)		(13,191,598	)
Net change in unrealized appreciation (depreciation) on investments		332,339			323,930
Net decrease in net assets resulting from operations		(14,431,078	)		(14,148,098	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		398,947,468			547,161,771
Cost of shares redeemed		(389,495,091	)		(533,926,936	)
Net increase from capital share transactions		9,452,377			13,234,835
Net decrease in net assets		(4,978,701	)		(913,263	)
Net assets:
Beginning of year		22,964,232			23,877,495
End of year	$	17,985,531		$	22,964,232
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		9,547,734			10,008,325
Shares redeemed		(9,578,574	)		(9,874,534	)
Net increase (decrease) in shares		(30,840	)		133,791

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |    21

INVERSE S&P 500 STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007d			2006d
Per Share Data
Net asset value, beginning of period	$	42.34		$	58.44		$	42.21		$	43.90		$	51.50
Income (loss) from investment operations:
Net investment income (loss)a		(.63	)		(.84	)		(.07	)		1.35			1.70
Net gain (loss) on investments (realized and unrealized)		(6.55	)		(15.26	)		16.17			(1.00	)		(5.60	)
Total from investment operations		(7.18	)		(16.10	)		16.10			.35			(3.90	)
Less distributions from:
Net investment income		—			—			(.36	)		(2.04	)		(3.70	)
Total distributions		—			—			(.36	)		(2.04	)		(3.70	)
Other capital items		—			—			.49	c		—			—
Net asset value, end of period	$	35.16		$	42.34		$	58.44		$	42.21		$	43.90
Total Returnb		(16.96	%)		(27.55	%)		39.25	%c		0.83	%		(7.50	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,986		$	22,964		$	23,877		$	21,581		$	19,025
Ratios to average net assets:
Net investment income (loss)		(1.55	%)		(1.57	%)		(0.14	%)		3.04	%		3.29	%
Total expenses		1.70	%		1.72	%		1.67	%		1.63	%		1.63	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Excluding the Capital Contribution, the Fund’s total return would have been 38.09%.
d	Per share amounts for the period December 31, 2005 — April 22, 2007 have been restated to reflect a 1:10 reverse stock split effective April 23, 2007.

22   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

NASDAQ-100^® FUND

OBJECTIVE: Seeks to provide investment results that correspond to a benchmark for over-the-counter securities on a daily basis. The Fund’s current benchmark is the NASDAQ-100 Index^® (the “underlying index”).

Inception: May 7, 1997

For the one-year period ended December 31, 2010, NASDAQ-100^® Fund maintained a daily correlation of over 99% to its benchmark of 100% of the daily price movement of the NASDAQ-100 Index. The Fund returned 18.48%, while the NASDAQ-100 Index returned 20.15% over the same time period.

Information Technology (12.67%) and Consumer Discretionary (4.08%) contributed most to the performance of the index during the year, while Materials (0.12%), Consumer Staples (0.20%) and Telecommunication Services (0.58%) were among the sectors which contributed the least to performance of the index.

Apple, Inc., Baidu, Inc. and Oracle Corp. were among the stocks which provided the most performance to the index, while Microsoft Corp., Cisco Systems, Inc. and Research in Motion Ltd. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
December 31, 2000 — December 31, 2010

*     Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

	1 Year			5 Year			10 Year
NASDAQ-100® FUND		18.48	%		5.45	%		-1.84	%
NASDAQ-100 INDEX		20.15	%		6.80	%		-0.13	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The NASDAQ-100 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)

Apple, Inc.	13.1	%
QUALCOMM, Inc.	3.1	%
Google, Inc. — Class A	2.8	%
Microsoft Corp.	2.6	%
Oracle Corp.	2.1	%
Amazon.com, Inc.	1.7	%
Intel Corp.	1.3	%
Cisco Systems, Inc.	1.3	%
Teva Pharmaceutical Industries Ltd. ADR	1.2	%
Starbucks Corp.	1.0	%
Top Ten Total	30.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |    23

SCHEDULE OF INVESTMENTS December 31, 2010

NASDAQ-100^® FUND

	Shares		Value
COMMON STOCKS† — 65.1%
INFORMATION TECHNOLOGY — 41.7%
Apple, Inc.*		22,410	$	7,228,570
QUALCOMM, Inc.		34,170		1,691,073
Google, Inc. — Class A*		2,650		1,574,021
Microsoft Corp.		51,570		1,439,834
Oracle Corp.		36,710		1,149,023
Intel Corp.		34,210		719,436
Cisco Systems, Inc.*		34,680		701,576
Research In Motion Ltd.*		9,160		532,471
eBay, Inc.*		17,030		473,945
Baidu, Inc. ADR*		4,800		463,344
Cognizant Technology Solutions Corp. — Class A*		5,180		379,642
NetApp, Inc.*		6,540		359,438
Intuit, Inc.*		6,910		340,663
Broadcom Corp. — Class A		7,293		317,610
Automatic Data Processing, Inc.		6,100		282,308
Altera Corp.		7,701		274,002
Adobe Systems, Inc.*		8,730		268,709
Citrix Systems, Inc.*		3,910		267,483
Symantec Corp.*		14,220		238,043
Activision Blizzard, Inc.		18,860		234,618
CA, Inc.		8,610		210,428
SanDisk Corp.*		4,170		207,916
Marvell Technology Group Ltd.*		10,870		201,639
Fiserv, Inc.*		3,260		190,906
Paychex, Inc.		6,010		185,769
Linear Technology Corp.		5,280		182,635
Yahoo!, Inc.*		10,980		182,597
F5 Networks, Inc.*		1,360		177,018
Xilinx, Inc.		6,020		174,460
BMC Software, Inc.*		3,620		170,647
Applied Materials, Inc.		12,100		170,005
Dell, Inc.*		12,530		169,781
Check Point Software Technologies Ltd.*		3,590		166,073
Autodesk, Inc.*		4,140		158,148
NVIDIA Corp.*		9,870		151,998
Akamai Technologies, Inc.*		3,190		150,090
Infosys Technologies Ltd. ADR		1,965		149,497
Micron Technology, Inc.*		17,860		143,237
KLA-Tencor Corp.		3,550		137,172
Seagate Technology plc*		8,260		124,148
Maxim Integrated Products, Inc.		5,100		120,462
Lam Research Corp.*		2,220		114,952
Flextronics International Ltd.*		14,560		114,296
Electronic Arts, Inc.*		5,860		95,987
Microchip Technology, Inc.		2,720		93,051
VeriSign, Inc.		2,840		92,783
FLIR Systems, Inc.*		2,910		86,573
Total Information Technology				23,058,077
CONSUMER DISCRETIONARY — 10.3%
Amazon.com, Inc.*		5,220		939,600
Starbucks Corp.		18,050		579,946
Comcast Corp. — Class A		25,380		557,599
DIRECTV — Class A*		10,630		424,456
News Corp. — Class A		25,010		364,146
Priceline.com, Inc.*		910		363,590
Bed Bath & Beyond, Inc.*		6,100		299,815
Wynn Resorts Ltd.		2,370		246,101
Staples, Inc.		8,510		193,773
Mattel, Inc.		7,190		182,842
Virgin Media, Inc.		5,780		157,447
NetFlix, Inc.*		870		152,859
Liberty Media Corp. — Interactive*		9,610		151,550
Sears Holdings Corp.*		2,020		148,975
O’Reilly Automotive, Inc.*		2,440		147,425
Ross Stores, Inc.		2,130		134,722
Dollar Tree, Inc.*		2,310		129,545
Expedia, Inc.		4,760		119,428
Ctrip.com International Ltd. ADR*		2,680		108,406
Apollo Group, Inc. — Class A*		2,620		103,464
Urban Outfitters, Inc.*		2,840		101,700
Garmin Ltd.		3,140		97,309
Total Consumer Discretionary				5,704,698
HEALTH CARE — 8.3%
Teva Pharmaceutical Industries Ltd. ADR		12,690		661,530
Gilead Sciences, Inc.*		14,000		507,360
Celgene Corp.*		8,165		482,878
Express Scripts, Inc. — Class A*		8,220		444,291
Amgen, Inc.*		7,710		423,279
Genzyme Corp.*		5,690		405,128
Biogen Idec, Inc.*		4,540		304,407
Life Technologies Corp.*		3,314		183,927
Intuitive Surgical, Inc.*		690		177,847
Mylan, Inc.*		7,740		163,546
Cerner Corp.*		1,450		137,373
Illumina, Inc.*		2,150		136,181
Vertex Pharmaceuticals, Inc.*		3,720		130,312
Warner Chilcott plc — Class A		4,410		99,490
Henry Schein, Inc.*		1,610		98,838
DENTSPLY International, Inc.		2,390		81,666
QIAGEN N.V.*		4,130		80,741
Cephalon, Inc.*		1,280		79,002
Total Health Care				4,597,796
INDUSTRIALS — 2.6%
PACCAR, Inc.		7,160		411,127
CH Robinson Worldwide, Inc.		2,870		230,145
Expeditors International of Washington, Inc.		3,650		199,290
First Solar, Inc.*		1,310		170,483

24   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

NASDAQ-100^® FUND

	Shares		Value
Joy Global, Inc.		1,780	$	154,415
Fastenal Co.		2,470		147,978
Stericycle, Inc.*		1,570		127,045
Total Industrials				1,440,483
TELECOMMUNICATION SERVICES — 1.2%
Vodafone Group plc — SP ADR		12,783		337,854
Millicom International Cellular S.A.		1,830		174,948
NII Holdings, Inc.*		2,880		128,621
Total Telecommunication Services				641,423
CONSUMER STAPLES - 0.8%
Costco Wholesale Corp.		3,990		288,118
Whole Foods Market, Inc.		3,180		160,876
Total Consumer Staples				448,994
MATERIALS — 0.2%
Sigma-Aldrich Corp.		2,040		135,782
Total Common Stocks (Cost $13,549,441)				36,027,253

	Face
	Amount
Repurchase agreements††,1 — 31.2%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/112	$	6,041,419		6,041,419
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		3,845,059		3,845,059
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		3,680,272		3,680,272
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		3,680,272		3,680,272
Total Repurchase Agreements (Cost $17,247,022)				17,247,022
Total Investments - 96.3% (Cost $30,796,463)			$	53,274,275
Cash & Other Assets, Less Liabilities — 3.7%				2,021,120
Total Net Assets — 100.0%			$	55,295,395

			Unrealized
	Contracts		Gain (loss)
FUTURES CONTRACTS PURCHASED†
March 2011 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $6,784,785)		153	$	19,600

	UNITS
EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International January 2011 NASDAQ-100 Index Swap, Terminating 01/27/113 (Notional Value $1,952,309)		880	$	(10,649	)
Morgan Stanley Capital Services, Inc. January 2011 NASDAQ-100 Index Swap, Terminating 01/26/113 (Notional Value $2,120,278)		956		(11,680	)
Credit Suisse Capital, LLC January 2011 NASDAQ-100 Index Swap, Terminating 01/28/113 (Notional Value $8,484,774)		3,826		(45,842	)
(Total Notional Value $12,557,361)			$	(68,171	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
3	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
ADR — American Depositary Receipt plc — Public Limited Company

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |    25

NASDAQ-100^® FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	36,027,253
Repurchase agreements, at value		17,247,022
Total investments		53,274,275
Segregated cash with broker		439,982
Receivables:
Fund shares sold		1,808,436
Dividends		9,646
Interest		53
Total assets		55,532,392
Liabilities:
Unrealized depreciation on swap agreements		68,171
Payable for:
Swap settlement		16,119
Variation margin		6,490
Fund shares redeemed		30,113
Management fees		36,175
Custodian fees		1,591
Transfer agent/maintenance fees		12,059
Investor service fees		12,059
Portfolio accounting fees		4,823
Licensing fees		5,462
Other		43,935
Total liabilities		236,997
Net assets	$	55,295,395
Net assets consist of:
Paid in capital	$	55,268,134
Accumulated net investment loss		—
Accumulated net realized loss on investments		(22,401,980	)
Net unrealized appreciation on investments		22,429,241
Net assets	$	55,295,395
Capital shares outstanding		2,923,965
Net asset value per share	$	18.91
Investments, at cost	$	13,549,441
Repurchase agreements, at cost		17,247,022
Total cost	$	30,796,463

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2,104)	$	342,373
Interest		15,197
Total investment income		357,570
Expenses:
Management fees		358,536
Transfer agent and administrative fees		119,512
Investor service fees		119,512
Portfolio accounting fees		47,804
Trustees’ fees*		5,782
Audit and outside service fees		42,840
Printing fees		38,765
Miscellaneous		29,713
Total expenses		762,464
Net investment loss		(404,894	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		8,808,128
Equity index swaps		1,328,154
Futures contracts		1,003,277
Net realized gain		11,139,559
Net change in unrealized appreciation
(depreciation) on:
Investments		(2,931,125	)
Equity index swaps		(95,735	)
Futures contracts		(19,833	)
Net change in unrealized appreciation (depreciation)		(3,046,693	)
Net realized and unrealized gain		8,092,866
Net increase in net assets resulting from operations	$	7,687,972

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

26   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

NASDAQ-100^® FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(404,894	)	$	(458,798	)
Net realized gain on investments		11,139,559			1,134,163
Net change in unrealized appreciation (depreciation) on investments		(3,046,693	)		19,841,687
Net increase in net assets resulting from operations		7,687,972			20,517,052
Distribution to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		209,726,239			202,045,190
Cost of shares redeemed		(219,660,925	)		(198,006,463	)
Net increase (decrease) from capital share transactions		(9,934,686	)		4,038,727
Net increase (decrease) in net assets		(2,246,714	)		24,555,779
Net assets:
Beginning of year		57,542,109			32,986,330
End of year	$	55,295,395		$	57,542,109
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		12,635,076			15,689,619
Shares redeemed		(13,316,411	)		(15,226,489	)
Net increase (decrease) in shares		(681,335	)		463,130

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |    27

NASDAQ-100^® FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	15.96		$	10.50		$	18.12		$	15.39		$	14.55
Income (loss) from investment operations:
Net investment income (loss)a		(.14	)		(.12	)		(.09	)		.03			(.07	)
Net gain (loss) on investments (realized and unrealized)		3.09			5.58			(7.51	)		2.71			.91
Total from investment operations		2.95			5.46			(7.60	)		2.74			.84
Less distributions from:
Net investment income		—			—			(.02	)		(.01	)		—
Total distributions		—			—			(.02	)		(.01	)		—
Net asset value, end of period	$	18.91		$	15.96		$	10.50		$	18.12		$	15.39
Total Returnb		18.48	%		52.00	%		(41.91	%)		17.82	%		5.77	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	55,295		$	57,542		$	32,986		$	82,492		$	72,871
Ratios to average net assets:
Net investment loss		(0.85	%)		(0.94	%)		(0.62	%)		0.18	%		(0.50	%)
Total expenses		1.59	%		1.59	%		1.55	%		1.51	%		1.49	%
Portfolio turnover rate		49	%		59	%		107	%		110	%		152	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

28   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the NASDAQ-100 Index^® (the “underlying index”).

Inception: May 21, 2001

For the one-year period ended December 31, 2010, with the NASDAQ-100 Index up 20.15%, the Inverse NASDAQ-100^® Fund returned -21.27% over the same time period. For the one-year period ended December 31, 2010, Inverse NASDAQ-100^® Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the NASDAQ-100 Index.

Information Technology (12.67%) and Consumer Discretionary (4.08%) contributed most to the performance of the index during the year, while Materials (0.12%), Consumer Staples (0.20%) and Telecommunication Services (0.58%) were among the sectors which contributed the least to performance of the index.

Apple, Inc., Baidu, Inc. and Oracle Corp. were among the stocks which provided the most performance to the index, while Microsoft Corp., Cisco Systems, Inc. and Research in Motion Ltd. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 21, 2001 — December 31, 2010

* Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/21/01)
INVERSE NASDAQ-100® STRATEGY FUND		-21.27	%		-9.39	%		-6.22	%
NASDAQ-100 INDEX		20.15	%		6.80	%		1.24	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The NASDAQ-100 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as equity index swap agreements and futures contracts.

the RYDEX | SGI variable trust annual report   |   29

SCHEDULE OF INVESTMENTS December 31, 2010

INVERSE NASDAQ-100^® STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† — 13.1%
Federal Home Loan Bank1 0.02% due 01/10/11	$	1,000,000	$	999,995
Total Federal Agency Discount Notes (Cost $999,995)				999,995
REPURCHASE AGREEMENTS††,2 — 104.4%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/113		2,652,834		2,652,834
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		1,830,592		1,830,592
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		1,752,138		1,752,138
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		1,752,138		1,752,138
Total Repurchase Agreements (Cost $7,987,702)				7,987,702
Total Investments — 117.5% (Cost $8,987,697)			$	8,987,697
Liabilities, Less Cash & Other Assets — (17.5)%				(1,340,489	)
Total Net Assets — 100.0%			$	7,647,208

			Unrealized
	Contracts		Gain
FUTURES CONTRACTS SOLD SHORT†
March 2011 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $665,175)		15	$	1,069
	UNITS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Morgan Stanley Capital Services, Inc. January 2011 NASDAQ-100 Index Swap, Terminating 01/26/114 (Notional Value $2,754,768)		1,242	$	14,898
Goldman Sachs International January 2011 NASDAQ-100 Index Swap, Terminating 01/27/114 (Notional Value $2,668,262)		1,203		14,533
Credit Suisse Capital, LLC January 2011 NASDAQ-100 Index Swap, Terminating 01/28/114 (Notional Value $1,572,119)		709		6,637
(Total Notional Value $6,995,149)			$	36,068

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
4	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.

30   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	999,995
Repurchase agreements, at value		7,987,702
Total investments		8,987,697
Segregated cash with broker		499,653
Unrealized appreciation on swap agreements		36,068
Receivable for swap settlement		7,316
Receivables:
Variation margin		2,175
Interest		25
Total assets		9,532,934
Liabilities:
Payable for:
Fund shares redeemed		1,860,248
Management fees		6,402
Custodian fees		235
Transfer agent/maintenance fees		1,778
Investor service fees		1,778
Portfolio accounting fees		711
Licensing fees		1,037
Other		13,537
Total liabilities		1,885,726
Net assets	$	7,647,208
Net assets consist of:
Paid in capital	$	30,016,378
Accumulated net investment loss		—
Accumulated net realized loss on investments		(22,406,307	)
Net unrealized appreciation on investments		37,137
Net assets	$	7,647,208
Capital shares outstanding		647,557
Net asset value per share	$	11.81
Investments, at cost	$	999,995
Repurchase agreements, at cost		7,987,702
Total cost	$	8,987,697

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Interest	$	21,981
Total investment income		21,981
Expenses:
Management fees		132,852
Transfer agent and administrative fees		36,903
Investor service fees		36,903
Portfolio accounting fees		14,761
Trustees’ fees*		1,717
Miscellaneous		33,007
Total expenses		256,143
Net investment loss		(234,162	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Equity index swaps		(3,948,517	)
Futures contracts		(186,496	)
Net realized loss		(4,135,013	)
Net change in unrealized appreciation
(depreciation) on:
Equity index swaps		510,271
Futures contracts		(2,463	)
Net change in unrealized appreciation (depreciation)		507,808
Net realized and unrealized loss		(3,627,205	)
Net decrease in net assets resulting from operations	$	(3,861,367	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   31

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2010
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(234,162	)	$	(258,433	)
Net realized loss on investments		(4,135,013	)		(9,235,533	)
Net change in unrealized appreciation (depreciation) on investments		507,808			(546,880	)
Net decrease in net assets resulting from operations		(3,861,367	)		(10,040,846	)
Distributions to shareholders from:
Net investment income		—			(16,229	)
Total distributions to shareholders		—			(16,229	)
Capital share transactions:
Proceeds from sale of shares		203,935,349			380,006,882
Distributions reinvested		—			16,229
Cost of shares redeemed		(206,735,433	)		(367,784,743	)
Net increase (decrease) from capital share transactions		(2,800,084	)		12,238,368
Net increase (decrease) in net assets		(6,661,451	)		2,181,293
Net assets:
Beginning of year		14,308,659			12,127,366
End of year	$	7,647,208		$	14,308,659
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		14,531,086			19,594,923
Shares issued from reinvestment of distributions		—			1,039
Shares redeemed		(14,837,287	)		(19,126,235	)
Net increase (decrease) in shares		(306,201	)		469,727

32   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	15.00		$	25.05		$	16.99		$	19.79		$	21.51
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.31	)		.02			.64			.74
Net gain (loss) on investments (realized and unrealized)		(2.97	)		(9.72	)		8.13			(2.87	)		(1.07	)
Total from investment operations		(3.19	)		(10.03	)		8.15			(2.23	)		(.33	)
Less distributions from:
Net investment income		—			(.02	)		(.09	)		(.57	)		(1.39	)
Total distributions		—			(.02	)		(.09	)		(.57	)		(1.39	)
Net asset value, end of period	$	11.81		$	15.00		$	25.05		$	16.99		$	19.79
Total Returnb		(21.27	%)		(40.05	%)		47.96	%		(11.28	%)		(1.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,647		$	14,309		$	12,127		$	13,640		$	23,929
Ratios to average net assets:
Net investment income (loss)		(1.59	%)		(1.61	%)		0.08	%		3.40	%		3.35	%
Total expenses		1.74	%		1.75	%		1.70	%		1.68	%		1.64	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   33

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

S&P 500 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the S&P 500 Index (the “underlying index”).

Inception: October 1, 2001

For the one-year period ended December 31, 2010, S&P 500 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the S&P 500 Index. S&P 500 2x Strategy Fund returned 25.47%, while the S&P 500 Index returned 15.06% over the same time period.

Consumer Discretionary (2.73%), Industrials (2.68%) and Energy (2.23%) provided the most performance to the index during the year. Utilities (0.24%), Health Care (0.33%) and Telecommunication Services (0.61%) provided the least performance to the index during the year.

Apple, Inc., General Electric Co. and Citigroup, Inc. were among the stocks which provided the most performance to the index during the year. Microsoft Corp., Hewlett-Packard Co. and Cisco Systems, Inc. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 1, 2001 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(10/01/01)
S&P 500 2x STRATEGY FUND		25.47	%		-6.05	%		-1.32	%
S&P 500 INDEX		15.06	%		2.29	%		4.09	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)

Exxon Mobil Corp.	1.2	%
Apple, Inc.	1.0	%
Microsoft Corp.	0.7	%
General Electric Co.	0.6	%
Chevron Corp.	0.6	%
International Business Machines Corp.	0.6	%
Procter & Gamble Co.	0.6	%
AT&T, Inc.	0.6	%
Johnson & Johnson	0.5	%
JPMorgan Chase & Co.	0.5	%
Top Ten Total	6.9	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

34     |     the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS	December 31, 2010
S&P 500 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 36.7%
INFORMATION TECHNOLOGY - 6.8%
Apple, Inc.*		624	$	201,277
Microsoft Corp.		5,100		142,392
International Business Machines Corp.		837		122,838
Google, Inc. — Class A*		170		100,975
Oracle Corp.		2,620		82,006
Intel Corp.		3,780		79,493
Cisco Systems, Inc.*		3,750		75,863
Hewlett-Packard Co.		1,540		64,834
QUALCOMM, Inc.		1,100		54,439
EMC Corp.*		1,390		31,831
Texas Instruments, Inc.		790		25,675
Visa, Inc. — Class A		330		23,225
eBay, Inc.*		780		21,707
Corning, Inc.		1,060		20,479
Dell, Inc.*		1,140		15,447
Automatic Data Processing, Inc.		330		15,272
Mastercard, Inc. — Class A		68		15,240
Cognizant Technology Solutions Corp. — Class A*		207		15,171
Yahoo!, Inc.*		880		14,634
Motorola Solutions, Inc.*		1,585		14,376
Broadcom Corp. — Class A		310		13,501
NetApp, Inc.*		240		13,190
Juniper Networks, Inc.*		350		12,922
Applied Materials, Inc.		900		12,645
Xerox Corp.		940		10,829
Salesforce.com, Inc.*		80		10,560
Adobe Systems, Inc.*		340		10,465
Intuit, Inc.*		190		9,367
Citrix Systems, Inc.*		130		8,893
Symantec Corp.*		530		8,872
Western Union Co.		440		8,171
SanDisk Corp.*		160		7,978
Altera Corp.		214		7,614
Analog Devices, Inc.		200		7,534
Paychex, Inc.		220		6,800
F5 Networks, Inc.*		50		6,508
CA, Inc.		260		6,354
Amphenol Corp. — Class A		118		6,228
NVIDIA Corp.*		390		6,006
Red Hat, Inc.*		130		5,935
Fiserv, Inc.*		100		5,856
Autodesk, Inc.*		150		5,730
Akamai Technologies, Inc.*		120		5,646
BMC Software, Inc.*		117		5,515
Western Digital Corp.*		160		5,424
Xilinx, Inc.		180		5,216
Linear Technology Corp.		150		5,189
Computer Sciences Corp.		100		4,960
Fidelity National Information Services, Inc.		180		4,930
Micron Technology, Inc.*		580		4,652
McAfee, Inc.*		99		4,585
Teradata Corp.*		110		4,528
Microchip Technology, Inc.		130		4,447
KLA-Tencor Corp.		110		4,250
Harris Corp.		88		3,986
VeriSign, Inc.		117		3,822
Electronic Arts, Inc.*		217		3,555
FLIR Systems, Inc.*		110		3,273
Advanced Micro Devices, Inc.*		390		3,190
SAIC, Inc.*		197		3,124
Jabil Circuit, Inc.		129		2,592
LSI Corp.*		420		2,516
National Semiconductor Corp.		160		2,202
JDS Uniphase Corp.*		150		2,172
Monster Worldwide, Inc.*		90		2,127
Molex, Inc.		87		1,977
Novellus Systems, Inc.*		60		1,939
Compuware Corp.*		150		1,751
Tellabs, Inc.		250		1,695
Total System Services, Inc.		110		1,692
MEMC Electronic Materials, Inc.*		150		1,689
Teradyne, Inc.*		120		1,685
Lexmark International, Inc. — Class A*		47		1,637
Novell, Inc.*		240		1,421
QLogic Corp.*		70		1,191
Total Information Technology				1,437,710
FINANCIALS - 5.9%
JPMorgan Chase & Co.		2,650		112,413
Wells Fargo & Co.		3,550		110,015
Berkshire Hathaway, Inc. — Class B*		1,170		93,729
Citigroup, Inc.*		19,660		92,992
Bank of America Corp.		6,830		91,112
Goldman Sachs Group, Inc.		350		58,856
U.S. Bancorp		1,297		34,980
American Express Co.		710		30,473
Morgan Stanley		1,020		27,754
MetLife, Inc.		610		27,108
Bank of New York Mellon Corp.		840		25,368
PNC Financial Services Group, Inc.		360		21,859
Simon Property Group, Inc.		200		19,898
Prudential Financial, Inc.		330		19,374
Aflac, Inc.		320		18,058
Travelers Companies, Inc.		310		17,270

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     35

SCHEDULE OF INVESTMENTS (continued)

S&P 500 2x STRATEGY FUND December 31, 2010

	Shares		Value
State Street Corp.		340	$	15,756
CME Group, Inc. — Class A		47		15,122
ACE Ltd.		230		14,317
Capital One Financial Corp.		310		13,194
Chubb Corp.		210		12,524
BB&T Corp.		470		12,356
Allstate Corp.		360		11,477
Charles Schwab Corp.		670		11,464
Franklin Resources, Inc.		99		11,010
T. Rowe Price Group, Inc.		170		10,972
AON Corp.		220		10,122
Marsh & McLennan Companies, Inc.		370		10,116
SunTrust Banks, Inc.		340		10,033
Equity Residential		190		9,870
Ameriprise Financial, Inc.		170		9,784
HCP, Inc.		250		9,198
Vornado Realty Trust		110		9,166
Progressive Corp.		450		8,942
Northern Trust Corp.		160		8,866
Public Storage		87		8,824
Loews Corp.		210		8,171
Host Hotels & Resorts, Inc.		450		8,041
Hartford Financial Services Group, Inc.		300		7,947
Fifth Third Bancorp		540		7,927
Boston Properties, Inc.		87		7,491
Invesco Ltd.		310		7,459
Principal Financial Group, Inc.		220		7,163
M&T Bank Corp.		80		6,964
Discover Financial Services		368		6,819
Weyerhaeuser Co.		360		6,815
AvalonBay Communities, Inc.		56		6,303
IntercontinentalExchange, Inc.*		50		5,958
Regions Financial Corp.		850		5,950
Lincoln National Corp.		210		5,840
ProLogis		390		5,632
Ventas, Inc.		107		5,615
NYSE Euronext		180		5,396
KeyCorp		600		5,310
Unum Group		210		5,086
Comerica, Inc.		120		5,069
American International Group, Inc.*		87		5,013
Kimco Realty Corp.		270		4,871
XL Group plc — Class A		220		4,800
Health Care REIT, Inc.		100		4,764
Hudson City Bancorp, Inc.		360		4,586
Genworth Financial, Inc. — Class A*		330		4,336
SLM Corp.*		330		4,155
Plum Creek Timber Company, Inc. (REIT)		110		4,120
CB Richard Ellis Group, Inc. — Class A*		200		4,096
Huntington Bancshares, Inc.		580		3,985
Leucadia National Corp.		130		3,793
Moody’s Corp.		139		3,689
Legg Mason, Inc.		100		3,627
People’s United Financial, Inc.		250		3,502
Cincinnati Financial Corp.		107		3,391
Torchmark Corp.		50		2,987
Zions Bancorp.		120		2,908
Assurant, Inc.		70		2,696
Marshall & Ilsley Corp.		357		2,470
NASDAQ OMX Group, Inc.*		100		2,371
E*Trade Financial Corp.*		130		2,080
Apartment Investment & Management Co. — Class A		78		2,016
First Horizon National Corp.*		161		1,896
Federated Investors, Inc. — Class B		60		1,570
Janus Capital Group, Inc.		120		1,556
Total Financials				1,240,606
ENERGY - 4.4%
Exxon Mobil Corp.		3,410		249,339
Chevron Corp.		1,357		123,826
Schlumberger Ltd.		920		76,820
ConocoPhillips		988		67,283
Occidental Petroleum Corp.		547		53,661
Apache Corp.		260		31,000
Anadarko Petroleum Corp.		340		25,894
Halliburton Co.		617		25,192
Devon Energy Corp.		290		22,768
National Oilwell Varco, Inc.		277		18,628
Marathon Oil Corp.		480		17,774
Baker Hughes, Inc.		290		16,579
EOG Resources, Inc.		170		15,540
Hess Corp.		200		15,308
Chesapeake Energy Corp.		440		11,400
Peabody Energy Corp.		177		11,324
Spectra Energy Corp.		437		10,921
Noble Energy, Inc.		116		9,985
Williams Companies, Inc.		400		9,888
Murphy Oil Corp.		130		9,691
Valero Energy Corp.		380		8,786
Southwestern Energy Co.*		230		8,609
Cameron International Corp.*		160		8,117
Consol Energy, Inc.		150		7,311
FMC Technologies, Inc.*		80		7,113
Pioneer Natural Resources Co.		80		6,946
El Paso Corp.		477		6,564
Newfield Exploration Co.*		90		6,490
Denbury Resources, Inc.*		270		5,154
Range Resources Corp.		109		4,903
Nabors Industries Ltd.*		186		4,364
QEP Resources, Inc.		120		4,357

36     |     the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

S&P 500 2x STRATEGY FUND December 31, 2010

	Shares		Value
EQT Corp.		97	$	4,349
Massey Energy Co.		67		3,595
Helmerich & Payne, Inc.		70		3,394
Sunoco, Inc.		80		3,225
Diamond Offshore Drilling, Inc.		48		3,210
Rowan Companies, Inc.*		88		3,072
Cabot Oil & Gas Corp.		70		2,649
Tesoro Corp.		97		1,798
Total Energy				926,827
INDUSTRIALS - 4.1%
General Electric Co.		7,210		131,871
United Technologies Corp.		630		49,594
United Parcel Service, Inc. — Class B		667		48,411
3M Co.		480		41,424
Caterpillar, Inc.		430		40,274
Boeing Co.		500		32,630
Union Pacific Corp.		330		30,578
Emerson Electric Co.		510		29,157
Honeywell International, Inc.		529		28,122
Deere & Co.		290		24,084
FedEx Corp.		210		19,532
General Dynamics Corp.		259		18,379
Illinois Tool Works, Inc.		336		17,942
Danaher Corp.		360		16,981
CSX Corp.		250		16,152
Norfolk Southern Corp.		247		15,516
Cummins, Inc.		130		14,301
PACCAR, Inc.		249		14,298
Lockheed Martin Corp.		200		13,982
Tyco International Ltd.		330		13,675
Precision Castparts Corp.		96		13,364
Northrop Grumman Corp.		200		12,956
Waste Management, Inc.		320		11,798
Raytheon Co.		250		11,585
Eaton Corp.		110		11,166
Ingersoll-Rand plc		220		10,360
Parker Hannifin Corp.		110		9,493
CH Robinson Worldwide, Inc.		107		8,580
Fluor Corp.		120		7,951
Expeditors International of Washington, Inc.		140		7,644
Dover Corp.		127		7,423
Rockwell Automation, Inc.		100		7,171
Goodrich Corp.		80		7,046
Southwest Airlines Co.		507		6,581
Rockwell Collins, Inc.		110		6,409
Republic Services, Inc. — Class A		210		6,271
ITT Corp.		120		6,253
Fastenal Co.		100		5,991
L-3 Communications Holdings, Inc.		80		5,639
WW Grainger, Inc.		38		5,248
First Solar, Inc.*		40		5,206
Stericycle, Inc.*		60		4,855
Flowserve Corp.		40		4,769
Roper Industries, Inc.		60		4,586
Textron, Inc.		190		4,492
Jacobs Engineering Group, Inc.*		90		4,126
Pall Corp.		80		3,966
Iron Mountain, Inc.		140		3,501
Pitney Bowes, Inc.		137		3,313
Robert Half International, Inc.		100		3,060
Masco Corp.		240		3,038
Quanta Services, Inc.*		150		2,988
Avery Dennison Corp.		70		2,964
Equifax, Inc.		80		2,848
Cintas Corp.		90		2,516
Dun & Bradstreet Corp.		30		2,463
RR Donnelley & Sons Co.		140		2,446
Snap-On, Inc.		38		2,150
Ryder System, Inc.		40		2,106
Total Industrials				851,225
HEALTH CARE - 4.0%
Johnson & Johnson		1,860		115,041
Pfizer, Inc.		5,420		94,904
Merck & Company, Inc.		2,090		75,324
Abbott Laboratories		1,047		50,162
Amgen, Inc.*		640		35,136
Bristol-Myers Squibb Co.		1,160		30,717
Medtronic, Inc.		730		27,076
UnitedHealth Group, Inc.		740		26,721
Eli Lilly & Co.		690		24,178
Gilead Sciences, Inc.*		548		19,860
Baxter International, Inc.		390		19,742
Express Scripts, Inc. — Class A*		358		19,350
Celgene Corp.*		320		18,925
Medco Health Solutions, Inc.*		290		17,768
WellPoint, Inc.*		270		15,352
Thermo Fisher Scientific, Inc.*		270		14,947
Allergan, Inc.		210		14,421
Becton Dickinson and Co.		160		13,523
Genzyme Corp.*		180		12,816
Stryker Corp.		230		12,351
McKesson Corp.		170		11,965
Biogen Idec, Inc.*		164		10,996
St. Jude Medical, Inc.*		227		9,704
Agilent Technologies, Inc.*		230		9,529
Cardinal Health, Inc.		240		9,194
Aetna, Inc.		270		8,238
Boston Scientific Corp.*		1,030		7,797
Intuitive Surgical, Inc.*		30		7,733
Life Technologies Corp.*		129		7,159
Zimmer Holdings, Inc.*		130		6,978
CIGNA Corp.		180		6,599

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     37

SCHEDULE OF INVESTMENTS (continued)

S&P 500 2x STRATEGY FUND December 31, 2010

	Shares		Value
AmerisourceBergen Corp. — Class A		187	$	6,380
Laboratory Corporation of America Holdings*		70		6,154
Mylan, Inc.*		290		6,128
Forest Laboratories, Inc.*		190		6,076
Humana, Inc.*		110		6,021
Hospira, Inc.*		107		5,959
CR Bard, Inc.		60		5,506
Quest Diagnostics, Inc.		100		5,397
Varian Medical Systems, Inc.*		77		5,335
DaVita, Inc.*		70		4,864
Cerner Corp.*		50		4,737
Waters Corp.*		57		4,429
Watson Pharmaceuticals, Inc.*		77		3,977
CareFusion Corp.*		150		3,855
DENTSPLY International, Inc.		100		3,417
Cephalon, Inc.*		50		3,086
Coventry Health Care, Inc.*		100		2,640
Tenet Healthcare Corp.*		330		2,208
Patterson Companies, Inc.		70		2,144
PerkinElmer, Inc.		80		2,066
Total Health Care				844,585
CONSUMER STAPLES - 3.9%
Procter & Gamble Co.		1,890		121,584
Coca-Cola Co.		1,574		103,522
Philip Morris International, Inc.		1,230		71,992
Wal-Mart Stores, Inc.		1,330		71,727
PepsiCo, Inc.		1,070		69,903
Kraft Foods, Inc. — Class A		1,177		37,087
Altria Group, Inc.		1,407		34,640
CVS Caremark Corp.		920		31,988
Colgate-Palmolive Co.		330		26,522
Walgreen Co.		630		24,545
Costco Wholesale Corp.		289		20,869
Kimberly-Clark Corp.		280		17,651
General Mills, Inc.		430		15,304
Archer-Daniels-Midland Co.		430		12,934
Sysco Corp.		400		11,760
HJ Heinz Co.		220		10,881
Kroger Co.		430		9,615
Mead Johnson Nutrition Co. — Class A		140		8,715
Kellogg Co.		170		8,684
Avon Products, Inc.		290		8,427
Lorillard, Inc.		97		7,960
Sara Lee Corp.		430		7,529
Reynolds American, Inc.		230		7,503
ConAgra Foods, Inc.		300		6,774
Estee Lauder Companies, Inc. — Class A		80		6,456
Coca-Cola Enterprises, Inc.		230		5,757
Clorox Co.		90		5,695
Safeway, Inc.		250		5,622
Molson Coors Brewing Co. — Class B		110		5,521
Dr Pepper Snapple Group, Inc.		150		5,274
Whole Foods Market, Inc.		100		5,059
JM Smucker Co.		77		5,055
Hershey Co.		100		4,715
Brown-Forman Corp. — Class B		67		4,665
Campbell Soup Co.		130		4,518
McCormick & Company, Inc.		90		4,188
Tyson Foods, Inc. — Class A		200		3,444
Constellation Brands, Inc. — Class A*		120		2,658
Hormel Foods Corp.		50		2,563
SUPERVALU, Inc.		140		1,348
Dean Foods Co.*		117		1,034
Total Consumer Staples				821,688
CONSUMER DISCRETIONARY - 3.9%
McDonald’s Corp.		720		55,267
Walt Disney Co.		1,280		48,013
Amazon.com, Inc.*		240		43,200
Ford Motor Co.*		2,540		42,647
Comcast Corp. — Class A		1,890		41,523
Home Depot, Inc.		1,110		38,917
Target Corp.		480		28,862
Time Warner, Inc.		750		24,128
Lowe’s Companies, Inc.		930		23,324
News Corp. — Class A		1,550		22,568
DIRECTV — Class A*		560		22,361
NIKE, Inc. — Class B		260		22,209
Johnson Controls, Inc.		458		17,496
Viacom, Inc. — Class B		410		16,240
Starbucks Corp.		500		16,065
Yum! Brands, Inc.		320		15,696
Time Warner Cable, Inc. — Class A		237		15,649
Carnival Corp.		290		13,372
TJX Companies, Inc.		270		11,985
Staples, Inc.		490		11,157
Coach, Inc.		200		11,062
Kohl’s Corp.*		200		10,868
Priceline.com, Inc.*		27		10,788
Omnicom Group, Inc.		200		9,160
CBS Corp. — Class B		460		8,763
Bed Bath & Beyond, Inc.*		176		8,650
Discovery Communications, Inc. — Class A*		190		7,923
Starwood Hotels & Resorts Worldwide, Inc.		130		7,901
Marriott International, Inc. — Class A		190		7,893
McGraw-Hill Companies, Inc.		210		7,646
Best Buy Company, Inc.		220		7,544
Stanley Black & Decker, Inc.		110		7,356
Macy’s, Inc.		287		7,261

38     |     the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

S&P 500 2x STRATEGY FUND December 31, 2010

	Shares		Value
The Gap, Inc.		300	$	6,642
Mattel, Inc.		240		6,103
Fortune Brands, Inc.		100		6,025
Genuine Parts Co.		110		5,647
Tiffany & Co.		90		5,604
Harley-Davidson, Inc.		160		5,547
Limited Brands, Inc.		180		5,531
O’Reilly Automotive, Inc.*		90		5,438
Cablevision Systems Corp. — Class A		160		5,415
NetFlix, Inc.*		30		5,271
Wynn Resorts Ltd.		50		5,192
JC Penney Company, Inc.		157		5,073
Ross Stores, Inc.		80		5,060
VF Corp.		57		4,912
CarMax, Inc.*		150		4,782
Nordstrom, Inc.		110		4,662
AutoZone, Inc.*		17		4,634
Family Dollar Stores, Inc.		90		4,474
Polo Ralph Lauren Corp. — Class A		40		4,437
Whirlpool Corp.		49		4,353
Hasbro, Inc.		90		4,246
Darden Restaurants, Inc.		88		4,087
Newell Rubbermaid, Inc.		200		3,636
Wyndham Worldwide Corp.		120		3,595
Apollo Group, Inc. — Class A*		90		3,554
International Game Technology		200		3,538
Expedia, Inc.		140		3,513
Interpublic Group of Companies, Inc.*		330		3,505
Abercrombie & Fitch Co. — Class A		59		3,400
Urban Outfitters, Inc.*		90		3,223
Scripps Networks Interactive, Inc. — Class A		57		2,950
H&R Block, Inc.		210		2,501
Gannett Company, Inc.		160		2,414
Leggett & Platt, Inc.		100		2,276
Harman International Industries, Inc.*		48		2,222
GameStop Corp. — Class A*		97		2,219
DR Horton, Inc.		186		2,219
Sears Holdings Corp.*		30		2,213
Lennar Corp. — Class A		107		2,006
Goodyear Tire & Rubber Co.*		160		1,896
DeVry, Inc.		38		1,823
Pulte Group, Inc.*		230		1,730
Big Lots, Inc.*		50		1,523
RadioShack Corp.		80		1,479
AutoNation, Inc.*		40		1,128
Meredith Corp.		20		693
Total Consumer Discretionary				815,885
MATERIALS - 1.4%
Freeport-McMoRan Copper & Gold, Inc. — Class B		320		38,429
E. I. du Pont de Nemours & Co.		618		30,826
Dow Chemical Co.		790		26,971
Monsanto Co.		360		25,070
Newmont Mining Co.		330		20,272
Praxair, Inc.		210		20,049
Air Products & Chemicals, Inc.		150		13,642
Alcoa, Inc.		690		10,619
PPG Industries, Inc.		110		9,248
Nucor Corp.		210		9,202
International Paper Co.		300		8,172
Ecolab, Inc.		160		8,067
Cliffs Natural Resources, Inc.		87		6,787
CF Industries Holdings, Inc.		50		6,757
United States Steel Co.		100		5,842
Sigma-Aldrich Corp.		80		5,325
Sherwin-Williams Co.		60		5,025
Eastman Chemical Co.		50		4,204
Vulcan Materials Co.		90		3,992
Ball Corp.		58		3,947
FMC Corp.		49		3,915
Allegheny Technologies, Inc.		67		3,697
Owens-Illinois, Inc.*		110		3,377
Airgas, Inc.		50		3,123
MeadWestvaco Corp.		110		2,878
Sealed Air Corp.		110		2,800
International Flavors & Fragrances, Inc.		50		2,779
Bemis Company, Inc.		70		2,286
AK Steel Holding Corp.		70		1,146
Titanium Metals Corp.*		60		1,031
Total Materials				289,478
UTILITIES - 1.2%
Southern Co.		565		21,600
Exelon Corp.		450		18,738
Dominion Resources, Inc.		390		16,661
Duke Energy Corp.		900		16,029
NextEra Energy, Inc.		280		14,557
PG&E Corp.		273		13,060
American Electric Power Company, Inc.		330		11,873
Public Service Enterprise Group, Inc.		340		10,815
Consolidated Edison, Inc.		200		9,914
Progress Energy, Inc.		200		8,696
PPL Corp.		330		8,686
Entergy Corp.		120		8,500
Edison International		220		8,492
Sempra Energy		160		8,397
FirstEnergy Corp.		210		7,774

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     39

SCHEDULE OF INVESTMENTS (concluded)

S&P 500 2x STRATEGY FUND December 31, 2010

	Shares		Value
Xcel Energy, Inc.		310	$	7,301
AES Corp.*		450		5,481
DTE Energy Co.		110		4,985
Wisconsin Energy Corp.		78		4,591
CenterPoint Energy, Inc.		287		4,512
Ameren Corp.		156		4,398
Constellation Energy Group, Inc.		140		4,288
Northeast Utilities		119		3,794
Oneok, Inc.		67		3,716
NRG Energy, Inc.*		170		3,322
NiSource, Inc.		187		3,295
SCANA Corp.		80		3,248
CMS Energy Corp.		167		3,106
Allegheny Energy, Inc.		120		2,909
Pinnacle West Capital Corp.		70		2,901
Pepco Holdings, Inc.		147		2,683
TECO Energy, Inc.		148		2,634
Integrys Energy Group, Inc.		50		2,425
Nicor, Inc.		27		1,348
Total Utilities				254,729
TELECOMMUNICATION SERVICES - 1.1%
AT&T, Inc.		4,000		117,520
Verizon Communications, Inc.		1,910		68,340
American Tower Corp. — Class A*		270		13,943
CenturyLink, Inc.		209		9,650
Qwest Communications International, Inc.		1,177		8,957
Sprint Nextel Corp.*		2,023		8,557
Frontier Communications Corp.		670		6,519
Windstream Corp.		330		4,600
MetroPCS Communications, Inc.*		180		2,273
Total Telecommunication Services				240,359
Total Common Stocks (Cost $4,018,196)				7,723,092
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		4		1
Total Consumer Discretionary				1
Total Warrant (Cost $—)				1

	Face
	Amount		Value
REPURCHASE AGREEMENTS††,1 - 61.9%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/112	$	6,570,208		6,570,208
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		2,210,784		2,210,784
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		2,116,037		2,116,037
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		2,116,037		2,116,037
Total Repurchase Agreements (Cost $13,013,066)				13,013,066
Total Investments - 98.6% (Cost $17,031,262)			$	20,736,159
Cash & Other Assets, Less Liabilities - 1.4%				287,655
Total Net Assets - 100.0%			$	21,023,814
			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
March 2011 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $3,199,613)		51	$	68,400
	UNITS
EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse Capital, LLC January 2011 S&P 500 Index Swap, Terminating 01/28/113 (Notional Value $16,471,086)		13,097	$	5,281
Morgan Stanley Capital Services, Inc. January 2011 S&P 500 Index Swap, Terminating 01/26/113 (Notional Value $3,320,196)		2,640		792
Goldman Sachs International January 2011 S&P 500 Index Swap, Terminating 01/27/113 (Notional Value $11,039,301)		8,778		(1,344	)
(Total Notional Value $30,830,583)			$	4,729

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
3	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

40     |     the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P 500 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	7,723,093
Repurchase agreements, at value		13,013,066
Total investments		20,736,159
Segregated cash with broker		610,020
Unrealized appreciation on swap agreements		6,073
Receivables:
Swap settlement		1,184
Variation margin		638
Fund shares sold		2,622,648
Dividends		9,079
Interest		40
Total assets		23,985,841
Liabilities:
Unrealized depreciation on swap agreements		1,344
Payable for:
Fund shares redeemed		2,922,033
Management fees		12,783
Custodian fees		469
Transfer agent/maintenance fees		3,551
Investor service fees		3,551
Portfolio accounting fees		1,420
Other		16,876
Total liabilities		2,962,027
Net assets	$	21,023,814
Net assets consist of:
Paid in capital	$	41,509,833
Accumulated net investment loss		—
Accumulated net realized loss on investments		(24,264,045	)
Net unrealized appreciation on investments		3,778,026
Net assets	$	21,023,814
Capital shares outstanding		186,888
Net asset value per share	$	112.49
Investments, at cost	$	4,018,196
Repurchase agreements, at cost		13,013,066
Total cost	$	17,031,262
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends	$	190,020
Interest		11,978
Total investment income		201,998
Expenses:
Management fees		162,720
Transfer agent and administrative fees		45,200
Investor service fees		45,200
Portfolio accounting fees		18,080
Trustees’ fees*		2,304
Miscellaneous		35,026
Total expenses		308,530
Net investment loss		(106,532	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		886,029
Equity index swaps		2,795,470
Futures contracts		440,521
Net realized gain		4,122,020
Net change in unrealized appreciation (depreciation) on:
Investments		(101,714	)
Equity index swaps		(243,153	)
Futures contracts		104,574
Net change in unrealized appreciation (depreciation)		(240,293	)
Net realized and unrealized gain		3,881,727
Net increase in net assets resulting from operations	$	3,775,195

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     41

S&P 500 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(106,532	)	$	(62,724	)
Net realized gain on investments		4,122,020			2,919,243
Net change in unrealized appreciation (depreciation) on investments		(240,293	)		2,173,257
Net increase in net assets resulting from operations		3,775,195			5,029,776
Distributions to shareholders from:
Net investment income		—			(155,985	)
Total distributions to shareholders		—			(155,985	)
Capital share transactions:
Proceeds from sale of shares		363,397,174			637,340,527
Distributions reinvested		—			155,985
Cost of shares redeemed		(375,020,497	)		(640,011,548	)
Net decrease from capital share transactions		(11,623,323	)		(2,515,036	)
Net increase (decrease) in net assets		(7,848,128	)		2,358,755
Net assets:
Beginning of year		28,871,942			26,513,187
End of year	$	21,023,814		$	28,871,942
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		3,884,836			9,648,262	†
Shares issued from reinvestment of distributions		—			1,768	†
Shares redeemed		(4,020,003	)		(9,758,459	)†
Net decrease in shares		(135,167	)		(108,429	)†

^† Share amounts for the period January 1, 2009 through April 19, 2009 have been restated to reflect a 1:10 reverse share split effective April 20, 2009.

42     |     the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P 500 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009c			2008c			2007c			2006c
Per Share Data
Net asset value, beginning of period	$	89.65		$	61.59		$	192.40		$	217.10		$	183.70
Income (loss) from investment operations:
Net investment income (loss)a		(.55	)		(.19	)		.70			2.60			2.30
Net gain (loss) on investments (realized and unrealized)		23.39			28.76			(131.50	)		(.80	)		41.20
Total from investment operations		22.84			28.57			(130.80	)		1.80			43.50
Less distributions from:
Net investment income		—			(.51	)		—			(2.30	)		(2.00	)
Net realized gains		—			—			—			(24.20	)		(8.10	)
Total distributions		—			(.51	)		—			(26.50	)		(10.10	)
Net asset value, end of period	$	112.49		$	89.65		$	61.59		$	192.40		$	217.10
Total Returnb		25.47	%		46.40	%		(67.98	%)		0.61	%		23.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,024		$	28,872		$	26,513		$	36,429		$	37,663
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(0.30	%)		0.56	%		1.12	%		1.13	%
Total expenses		1.71	%		1.71	%		1.67	%		1.62	%		1.64	%
Portfolio turnover rate		68	%		204	%		305	%		104	%		168	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Per share amounts for the period December 31, 2005 — April 19, 2009 have been restated to reflect a 1:10 reverse stock split effective April 20, 2009.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     43

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)
December 31, 2010

NASDAQ-100^® 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the NASDAQ-100 Index (the “underlying index”).

Inception: October 1, 2001

For the one-year period ended December 31, 2010, with the NASDAQ-100 Index up 20.15%, the NASDAQ-100^® 2x Strategy Fund returned 36.90% over the same time period. For the one year period ending December 31, 2010, the Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the NASDAQ-100 Index.

Information Technology (12.67%) and Consumer Discretionary (4.08%) contributed most to the performance of the index during the year, while Materials (0.12%), Consumer Staples (0.20%) and Telecommunication Services (0.58%) were among the sectors which contributed the least to performance of the index.

Apple, Inc., Baidu, Inc. and Oracle Corp. were among the stocks which provided the most performance to the index, while Microsoft Corp., Cisco Systems, Inc. and Research in Motion Ltd. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 1, 2001 — December 31, 2010

* Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

					Since Inception
	1 Year		5 Year		(10/01/01)
NASDAQ-100® 2x STRATEGY FUND	36.90	%	1.90	%		1.52	%
NASDAQ-100 INDEX	20.15	%	6.80	%		7.82	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The NASDAQ-100 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	6.5	%
QUALCOMM, Inc.	1.5	%
Google, Inc. — Class A	1.4	%
Microsoft Corp.	1.3	%
Oracle Corp.	1.0	%
Amazon.com, Inc.	0.8	%
Intel Corp.	0.7	%
Cisco Systems, Inc.	0.6	%
Teva Pharmaceutical Industries Ltd. ADR	0.6	%
Starbucks Corp.	0.5	%
Top Ten Total	14.9	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

44     |     the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS

NASDAQ-100^® 2x STRATEGY FUND December 31, 2010

	Shares		Value
COMMON STOCKS† - 32.6%
INFORMATION TECHNOLOGY - 20.9%
Apple, Inc.*		6,920	$	2,232,115
QUALCOMM, Inc.		10,560		522,614
Google, Inc. — Class A*		820		487,055
Microsoft Corp.		15,930		444,766
Oracle Corp.		11,340		354,942
Intel Corp.		10,570		222,287
Cisco Systems, Inc.*		10,710		216,663
Research In Motion Ltd.*		2,830		164,508
eBay, Inc.*		5,260		146,386
Baidu, Inc. ADR*		1,480		142,864
Cognizant Technology Solutions Corp. — Class A*		1,600		117,264
NetApp, Inc.*		2,020		111,019
Intuit, Inc.*		2,130		105,009
Broadcom Corp. — Class A		2,246		97,813
Automatic Data Processing, Inc.		1,890		87,469
Altera Corp.		2,382		84,752
Adobe Systems, Inc.*		2,700		83,106
Citrix Systems, Inc.*		1,210		82,776
Symantec Corp.*		4,390		73,489
Activision Blizzard, Inc.		5,830		72,525
CA, Inc.		2,660		65,010
SanDisk Corp.*		1,290		64,319
Marvell Technology Group Ltd.*		3,360		62,328
Fiserv, Inc.*		1,010		59,146
Paychex, Inc.		1,860		57,493
Linear Technology Corp.		1,630		56,382
Yahoo!, Inc.*		3,390		56,376
F5 Networks, Inc.*		420		54,667
Xilinx, Inc.		1,860		53,903
BMC Software, Inc.*		1,120		52,797
Applied Materials, Inc.		3,740		52,547
Dell, Inc.*		3,870		52,438
Check Point Software Technologies Ltd.*		1,110		51,349
Autodesk, Inc.*		1,280		48,896
NVIDIA Corp.*		3,050		46,970
Akamai Technologies, Inc.*		990		46,579
Infosys Technologies Ltd. ADR		610		46,409
Micron Technology, Inc.*		5,510		44,190
KLA-Tencor Corp.		1,100		42,504
Seagate Technology plc*		2,550		38,327
Maxim Integrated Products, Inc.		1,580		37,320
Lam Research Corp.*		690		35,728
Flextronics International Ltd.*		4,500		35,325
Electronic Arts, Inc.*		1,810		29,648
VeriSign, Inc.		880		28,750
Microchip Technology, Inc.		840		28,736
FLIR Systems, Inc.*		900		26,775
Total Information Technology				7,124,334
CONSUMER DISCRETIONARY - 5.2%
Amazon.com, Inc.*		1,610		289,800
Starbucks Corp.		5,580		179,285
Comcast Corp. — Class A		7,840		172,245
DIRECTV — Class A*		3,280		130,970
News Corp. — Class A		7,730		112,549
Priceline.com, Inc.*		280		111,874
Bed Bath & Beyond, Inc.*		1,890		92,894
Wynn Resorts Ltd.		730		75,803
Staples, Inc.		2,630		59,885
Mattel, Inc.		2,220		56,455
Virgin Media, Inc.		1,790		48,760
NetFlix, Inc.*		270		47,439
Liberty Media Corp. - Interactive*		2,970		46,837
Sears Holdings Corp.*		620		45,725
O’Reilly Automotive, Inc.*		750		45,315
Ross Stores, Inc.		660		41,745
Dollar Tree, Inc.*		710		39,817
Expedia, Inc.		1,470		36,882
Ctrip.com International Ltd. ADR*		830		33,573
Apollo Group, Inc. — Class A*		810		31,987
Urban Outfitters, Inc.*		880		31,513
Garmin Ltd.		970		30,060
Total Consumer Discretionary				1,761,413
HEALTH CARE - 4.1%
Teva Pharmaceutical Industries Ltd. ADR		3,920		204,350
Gilead Sciences, Inc.*		4,330		156,919
Celgene Corp.*		2,515		148,737
Express Scripts, Inc. — Class A*		2,540		137,287
Amgen, Inc.*		2,380		130,662
Genzyme Corp.*		1,760		125,312
Biogen Idec, Inc.*		1,400		93,870
Life Technologies Corp.*		1,020		56,610
Intuitive Surgical, Inc.*		210		54,127
Mylan, Inc.*		2,390		50,501
Cerner Corp.*		448		42,444
Illumina, Inc.*		660		41,804
Vertex Pharmaceuticals, Inc.*		1,150		40,284
Warner Chilcott plc — Class A		1,360		30,682
Henry Schein, Inc.*		496		30,449
DENTSPLY International, Inc.		740		25,286
QIAGEN N.V.*		1,270		24,829
Cephalon, Inc.*		397		24,503
Total Health Care				1,418,656
INDUSTRIALS - 1.3%
PACCAR, Inc.		2,210		126,898
CH Robinson Worldwide, Inc.		890		71,369
Expeditors International of Washington, Inc.		1,130		61,698
First Solar, Inc.*		410		53,357
Joy Global, Inc.		550		47,713

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     45

SCHEDULE OF INVESTMENTS (concluded)

NASDAQ-100^® 2x STRATEGY FUND December 31, 2010

	Shares		Value
Fastenal Co.		760	$	45,532
Stericycle, Inc.*		490		39,651
Total Industrials				446,218
TELECOMMUNICATION SERVICES - 0.6%
Vodafone Group plc — SP ADR		3,946		104,293
Millicom International Cellular S.A.		560		53,536
NII Holdings, Inc.*		890		39,747
Total Telecommunication Services				197,576
CONSUMER STAPLES - 0.4%
Costco Wholesale Corp.		1,230		88,818
Whole Foods Market, Inc.		980		49,578
Total Consumer Staples				138,396
MATERIALS - 0.1%
Sigma-Aldrich Corp.		630		41,933
Total Common Stocks (Cost $4,489,208)				11,128,526

	FACE
	AMOUNT
REPURCHASE AGREEMENTS††,1 - 56.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/112	$	9,324,466		9,324,466
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		3,426,917		3,426,917
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		3,280,050		3,280,050
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		3,280,050		3,280,050
Total Repurchase Agreements (Cost $19,311,483)				19,311,483
Total Investments - 89.2% (Cost $23,800,691)			$	30,440,009
Cash & Other Assets, Less Liabilities - 10.8%				3,666,975
Total Net Assets - 100.0%			$	34,106,984
			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
March 2011 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $12,904,395)		291	$	67,345
	UNITS
EQUITY INDEX SWAP AGREEMENTS††
Morgan Stanley Capital Services, Inc. January 2011 NASDAQ-100 Index Swap, Terminating 01/26/113 (Notional Value $2,147,520)		968	$	(11,831	)
Credit Suisse Capital, LLC January 2011 NASDAQ-100 Index Swap, Terminating 01/28/113 (Notional Value $7,071,006)		3,188		(38,204	)
Goldman Sachs International January 2011 NASDAQ-100 Index Swap, Terminating 01/27/113 (Notional Value $34,977,818)		15,771		(171,742	)
(Total Notional Value $44,196,344)			$	(221,777	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
3	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
	ADR — American Depositary Receipt
	plc — Public Limited Company

46     |     the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

NASDAQ-100^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	11,128,526
Repurchase agreements, at value		19,311,483
Total investments		30,440,009
Segregated cash with broker		1,057,629
Receivables:
Fund shares sold		3,535,405
Dividends		2,980
Interest		58
Total assets		35,036,081
Liabilities:
Unrealized depreciation on swap agreements		221,777
Payable for:
Swap settlement		2,511
Variation margin		34,348
Fund shares redeemed		604,356
Management fees		23,491
Custodian fees		861
Transfer agent/maintenance fees		6,525
Investor service fees		6,525
Portfolio accounting fees		2,610
Licensing fees		2,547
Other		23,546
Total liabilities		929,097
Net assets	$	34,106,984
Net assets consist of:
Paid in capital	$	30,299,504
Accumulated net investment loss		—
Accumulated net realized loss on investments		(2,677,406	)
Net unrealized appreciation on investments		6,484,886
Net assets	$	34,106,984
Capital shares outstanding		1,395,011
Net asset value per share	$	24.45
Investments, at cost	$	4,489,208
Repurchase agreements, at cost		19,311,483
Total cost	$	23,800,691
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends (net of foreign withholding tax of $905)	$	139,442
Interest		13,449
Total investment income		152,891
Expenses:
Management fees		237,057
Transfer agent and administrative fees		65,849
Investor service fees		65,849
Portfolio accounting fees		26,339
Trustees’ fees*		3,253
Audit and outside service fees		23,858
Miscellaneous		36,784
Total expenses		458,989
Net investment loss		(306,098	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,339,128
Equity index swaps		7,828,661
Futures contracts		5,349
Net realized gain		12,173,138
Net change in unrealized appreciation (depreciation) on:
Investments		(3,520,617	)
Equity index swaps		(1,278,258	)
Futures contracts		(480,346	)
Net change in unrealized appreciation (depreciation)		(5,279,221	)
Net realized and unrealized gain		6,893,917
Net increase in net assets resulting from operations	$	6,587,819

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     47

NASDAQ-100^® 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(306,098	)	$	(326,556	)
Net realized gain on investments		12,173,138			10,340,720
Net change in unrealized appreciation (depreciation) on investments		(5,279,221	)		9,318,556
Net increase in net assets resulting from operations		6,587,819			19,332,720
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		235,719,363			321,577,003
Cost of shares redeemed		(244,312,378	)		(328,145,035	)
Net decrease from capital share transactions		(8,593,015	)		(6,568,032	)
Net increase (decrease) in net assets		(2,005,196	)		12,764,688
Net assets:
Beginning of year		36,112,180			23,347,492
End of year	$	34,106,984		$	36,112,180
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		12,584,632			29,248,186
Shares redeemed		(13,211,686	)		(30,071,865	)
Net decrease in shares		(627,054	)		(823,679	)

48     |     the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

NASDAQ-100 ^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	17.86		$	8.20		$	29.98		$	23.46		$	22.39
Income (loss) from investment operations:
Net investment income (loss)a		(.22	)		(.14	)		(.10	)		.13			.03
Net gain (loss) on investments (realized and unrealized)		6.81			9.80			(21.66	)		6.49			1.06
Total from investment operations		6.59			9.66			(21.76	)		6.62			1.09
Less distributions from:
Net investment income		—			—			(.02	)		(.10	)		(.02	)
Total distributions		—			—			(.02	)		(.10	)		(.02	)
Net asset value, end of period	$	24.45		$	17.86		$	8.20		$	29.98		$	23.46
Total Returnb		36.90	%		117.80	%		(72.60	%)		28.20	%		4.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	34,107		$	36,112		$	23,347		$	65,069		$	29,673
Ratios to average net assets:
Net investment income (loss)		(1.16	%)		(1.19	%)		(0.53	%)		0.45	%		0.14	%
Total expenses		1.74	%		1.75	%		1.72	%		1.66	%		1.65	%
Portfolio turnover rate		92	%		80	%		175	%		203	%		250	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     49

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

MID-CAP 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate to the performance of a specific benchmark for mid-cap securities on a daily basis. The Fund’s current benchmark is 150% of the S&P MidCap 400^® Index (the “underlying index”).

Inception: October 1, 2001

For the year ended December 31, 2010, the Mid-Cap 1.5x Strategy Fund returned 37.55%. Over the year, its benchmark, the S&P MidCap 400 Index turned in a 26.64% return. The Fund had a correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P MidCap 400 Index.

Information Technology (4.96%), Industrials (4.60%) and Consumer Discretionary (4.45%) provided the most performance to the index during the year. Telecommunication Services (0.11%) and Utilities (0.99%) were the smallest contributors to performance.

F5 Networks, Inc., Netflix, Inc. and BorgWarner, Inc. were among the stocks which provided the most performance to the index during the year. Vertex Pharmaceuticals, Inc., Equinix, Inc. and Lender Processing Services, Inc. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 1, 2001 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(10/01/01)
MID-CAP 1.5x STRATEGY FUND		37.55	%		1.62	%		8.91	%
S&P MIDCAP 400 INDEX		26.64	%		5.73	%		9.99	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Edwards Lifesciences Corp.	0.4	%
Joy Global, Inc.	0.4	%
New York Community Bancorp, Inc.	0.4	%
BorgWarner, Inc.	0.4	%
Cimarex Energy Co.	0.3	%
Bucyrus International, Inc. — Class A	0.3	%
Vertex Pharmaceuticals, Inc.	0.3	%
Cree, Inc.	0.3	%
Lubrizol Corp.	0.3	%
Dollar Tree, Inc.	0.3	%
Top Ten Total	3.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

50   |   the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 51.5%
FINANCIALS - 10.2%
New York Community Bancorp, Inc.		4,150	$	78,227
Macerich Co.		1,240		58,739
AMB Property Corp.		1,610		51,053
SL Green Realty Corp.		750		50,632
Affiliated Managers Group, Inc.*		490		48,618
Federal Realty Investment Trust		589		45,901
Everest Re Group Ltd.		520		44,106
MSCI, Inc. — Class A*		1,130		44,025
Nationwide Health Properties, Inc.		1,200		43,656
UDR, Inc.		1,740		40,925
Rayonier, Inc.		770		40,440
Alexandria Real Estate Equities, Inc.		530		38,828
Realty Income Corp.		1,120		38,304
Reinsurance Group of America, Inc. — Class A		700		37,597
Cullen		580		35,450
Camden Property Trust		650		35,087
Liberty Property Trust		1,090		34,793
Jones Lang LaSalle, Inc.		410		34,407
Essex Property Trust, Inc.		300		34,266
Eaton Vance Corp.		1,130		34,160
Old Republic International Corp.		2,430		33,121
SEI Investments Co.		1,390		33,068
Regency Centers Corp.		780		32,947
HCC Insurance Holdings, Inc.		1,100		31,834
Jefferies Group, Inc.		1,180		31,423
Raymond James Financial, Inc.		950		31,065
Transatlantic Holdings, Inc.		600		30,972
W.R. Berkley Corp.		1,130		30,939
Duke Realty Corp.		2,400		29,904
Commerce Bancshares, Inc.		745		29,599
Fidelity National Financial, Inc. — Class A		2,160		29,549
Senior Housing Properties Trust		1,340		29,400
Arthur J Gallagher & Co.		1,009		29,342
Waddell & Reed Financial, Inc. — Class A		810		28,585
First Niagara Financial Group, Inc.		1,990		27,820
East West Bancorp, Inc.		1,410		27,565
Weingarten Realty Investors		1,150		27,324
Hospitality Properties Trust		1,180		27,187
City National Corp.		440		26,998
Brown & Brown, Inc.		1,120		26,813
BRE Properties, Inc.		610		26,535
Mack-Cali Realty Corp.		760		25,126
Associated Banc-Corp.		1,650		24,997
American Financial Group, Inc.		750		24,217
Corporate Office Properties Trust		640		22,368
Valley National Bancorp		1,540		22,022
Protective Life Corp.		820		21,845
Bank of Hawaii Corp.		460		21,717
Highwoods Properties, Inc.		680		21,658
SVB Financial Group*		400		21,220
Omega Healthcare Investors, Inc.		940		21,094
Apollo Investment Corp.		1,860		20,590
FirstMerit Corp.		1,040		20,582
Hanover Insurance Group, Inc.		430		20,090
StanCorp Financial Group, Inc.		440		19,862
Synovus Financial Corp.		7,490		19,774
Fulton Financial Corp.		1,900		19,646
Greenhill & Company, Inc.		240		19,603
Washington Federal, Inc.		1,070		18,104
TCF Financial Corp.		1,210		17,920
Prosperity Bancshares, Inc.		450		17,676
Westamerica Bancorporation		280		15,532
NewAlliance Bancshares, Inc.		1,000		14,980
First American Financial Corp.		990		14,791
Mercury General Corp.		340		14,623
Webster Financial Corp.		700		13,790
Trustmark Corp.		540		13,414
Cathay General Bancorp		750		12,525
Potlatch Corp.		380		12,369
Unitrin, Inc.		469		11,509
BancorpSouth, Inc.		699		11,149
Astoria Financial Corp.		780		10,850
International Bancshares Corp.		500		10,015
Cousins Properties, Inc.		998		8,323
Equity One, Inc.		440		7,999
PacWest Bancorp		300		6,414
Total Financials				2,089,598
INDUSTRIALS - 8.4%
Joy Global, Inc.		980		85,015
Bucyrus International, Inc. — Class A		770		68,838
AMETEK, Inc.		1,530		60,052
Manpower, Inc.		780		48,953
Kansas City Southern*		980		46,903
AGCO Corp.*		889		45,037
KBR, Inc.		1,440		43,877
Donaldson Company, Inc.		730		42,544
Timken Co.		770		36,752
BE Aerospace, Inc.*		980		36,289
J.B. Hunt Transport Services, Inc.		850		34,689
Gardner Denver, Inc.		500		34,410
Pentair, Inc.		940		34,319
SPX Corp.		480		34,315
Hubbell, Inc. — Class B		570		34,274
URS Corp.*		790		32,872
Terex Corp.*		1,040		32,282
Aecom Technology Corp.*		1,130		31,606

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   51

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Kennametal, Inc.		779	$	30,739
Oshkosh Corp.*		870		30,659
IDEX Corp.		779		30,474
Waste Connections, Inc.		1,100		30,283
Nordson Corp.		320		29,402
Baldor Electric Co.		450		28,368
MSC Industrial Direct Co. — Class A		430		27,817
Shaw Group, Inc.*		810		27,726
Corrections Corporation of America*		1,050		26,313
Lincoln Electric Holdings, Inc.		400		26,108
Copart, Inc.*		670		25,024
Regal-Beloit Corp.		370		24,701
Wabtec Corp.		460		24,329
Alliant Techsystems, Inc.		320		23,818
Thomas & Betts Corp.*		490		23,667
Acuity Brands, Inc.		410		23,645
Carlisle Companies, Inc.		580		23,049
Graco, Inc.		570		22,486
Kirby Corp.*		509		22,421
Towers Watson & Co. — Class A		430		22,386
Harsco Corp.		770		21,806
Woodward Governor Co.		569		21,372
Lennox International, Inc.		430		20,335
Trinity Industries, Inc.		760		20,224
Alaska Air Group, Inc.*		350		19,841
Landstar System, Inc.		470		19,242
Con-way, Inc.		520		19,016
Clean Harbors, Inc.*		220		18,498
Crane Co.		440		18,071
Valmont Industries, Inc.		200		17,746
Watsco, Inc.		270		17,032
FTI Consulting, Inc.*		440		16,403
Alexander & Baldwin, Inc.		390		15,612
GATX Corp.		439		15,488
Herman Miller, Inc.		540		13,662
HNI Corp.		430		13,416
United Rentals, Inc.*		580		13,195
JetBlue Airways Corp.*		1,920		12,691
Corporate Executive Board Co.		330		12,392
Rollins, Inc.		600		11,850
Brink’s Co.		440		11,827
Deluxe Corp.		490		11,280
Korn*		439		10,145
AirTran Holdings, Inc.*		1,290		9,533
Werner Enterprises, Inc.		420		9,492
Granite Construction, Inc.		330		9,052
Mine Safety Appliances Co.		290		9,028
Navigant Consulting, Inc.*		480		4,416
Total Industrials				1,719,107
INFORMATION TECHNOLOGY - 8.0%
Cree, Inc.*		1,030		67,867
Rovi Corp.*		1,000		62,010
Lam Research Corp.*		1,170		60,583
Atmel Corp.*		4,370		53,838
Skyworks Solutions, Inc.*		1,750		50,103
Riverbed Technology, Inc.*		1,400		49,238
Avnet, Inc.*		1,450		47,893
Trimble Navigation Ltd.*		1,150		45,919
ANSYS, Inc.*		870		45,301
Factset Research Systems, Inc.		440		41,254
Informatica Corp.*		890		39,187
Synopsys, Inc.*		1,420		38,212
Arrow Electronics, Inc.*		1,100		37,675
Equinix, Inc.*		440		35,754
Alliance Data Systems Corp.*		500		35,515
Global Payments, Inc.		760		35,120
Solera Holdings, Inc.		670		34,384
MICROS Systems, Inc.*		770		33,772
Polycom, Inc.*		810		31,574
TIBCO Software, Inc.*		1,590		31,339
Rackspace Hosting, Inc.*		930		29,211
Ingram Micro, Inc. — Class A*		1,500		28,635
CommScope, Inc.*		910		28,410
Broadridge Financial Solutions, Inc.		1,190		26,097
Lender Processing Services, Inc.		870		25,682
Parametric Technology Corp.*		1,120		25,234
AOL, Inc.*		1,020		24,184
Jack Henry & Associates, Inc.		820		23,903
NCR Corp.*		1,519		23,347
Gartner, Inc.*		700		23,240
Vishay Intertechnology, Inc.*		1,570		23,048
Concur Technologies, Inc.*		434		22,538
ADTRAN, Inc.		600		21,726
Itron, Inc.*		390		21,625
National Instruments Corp.		560		21,078
Cadence Design Systems, Inc.*		2,550		21,063
Zebra Technologies Corp. — Class A*		540		20,515
Diebold, Inc.		630		20,192
International Rectifier Corp.*		660		19,595
Tech Data Corp.*		440		19,369
Silicon Laboratories, Inc.*		420		19,328
RF Micro Devices, Inc.*		2,620		19,257
Ciena Corp.*		890		18,735
Fairchild Semiconductor International, Inc. — Class A*		1,180		18,420
CoreLogic, Inc.		990		18,335
NeuStar, Inc. — Class A*		700		18,235
Intersil Corp. — Class A		1,190		18,171
Plantronics, Inc.		450		16,749
Quest Software, Inc.*		570		15,812
Convergys Corp.*		1,160		15,277
DST Systems, Inc.		340		15,079
Semtech Corp.*		590		13,358
Acxiom Corp.*		770		13,206
Digital River, Inc.*		380		13,080
Mentor Graphics Corp.*		1,050		12,600

52   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

MID-CAP 1.5x STRATEGY FUND

	Shares		Value
ValueClick, Inc.*		770	$	12,343
Integrated Device Technology, Inc.*		1,460		9,724
Mantech International Corp. — Class A*		219		9,051
Fair Isaac Corp.		380		8,881
Advent Software, Inc.*		150		8,688
ACI Worldwide, Inc.*		320		8,598
SRA International, Inc. — Class A*		410		8,384
Total Information Technology				1,656,541
CONSUMER DISCRETIONARY - 7.3%
BorgWarner, Inc.*		1,080		78,149
Dollar Tree, Inc.*		1,190		66,735
Chipotle Mexican Grill, Inc.*		300		63,798
Advance Auto Parts, Inc.		800		52,920
PetSmart, Inc.		1,120		44,598
Phillips-Van Heusen Corp.		630		39,696
Gentex Corp.		1,340		39,610
Williams-Sonoma, Inc.		1,010		36,047
Fossil, Inc.*		490		34,535
Tractor Supply Co.		700		33,943
NVR, Inc.*		49		33,860
Dick’s Sporting Goods, Inc.*		850		31,875
LKQ Corp.*		1,380		31,354
Mohawk Industries, Inc.*		540		30,650
Deckers Outdoor Corp.*		370		29,504
Panera Bread Co. — Class A*		290		29,351
Foot Locker, Inc.		1,480		29,038
Guess?, Inc.		609		28,818
Sotheby’s		640		28,800
Tupperware Brands Corp.		600		28,602
American Eagle Outfitters, Inc.		1,870		27,358
J Crew Group, Inc.*		610		26,315
Toll Brothers, Inc.*		1,380		26,220
Polaris Industries, Inc.		320		24,966
WMS Industries, Inc.*		550		24,882
Warnaco Group, Inc.*		420		23,129
Hanesbrands, Inc.*		910		23,114
Lamar Advertising Co. — Class A*		550		21,912
Aeropostale, Inc.*		880		21,683
Bally Technologies, Inc.*		510		21,517
Chico’s FAS, Inc.		1,690		20,331
DreamWorks Animation SKG, Inc. — Class A*		680		20,040
John Wiley & Sons, Inc. — Class A		440		19,906
Strayer Education, Inc.		130		19,789
Rent-A-Center, Inc. — Class A		610		19,691
Service Corporation International		2,330		19,223
Under Armour, Inc. — Class A*		340		18,646
Brinker International, Inc.		880		18,374
Cheesecake Factory, Inc.*		570		17,476
Ascena Retail Group, Inc.*		660		17,437
Life Time Fitness, Inc.*		400		16,396
Saks, Inc.*		1,530		16,371
ITT Educational Services, Inc.*		250		15,923
AnnTaylor Stores Corp.*		550		15,064
Aaron’s, Inc.		700		14,273
Office Depot, Inc.*		2,641		14,261
Wendy’s — Class A		3,070		14,183
Eastman Kodak Co.*		2,560		13,722
Thor Industries, Inc.		400		13,584
Career Education Corp.*		630		13,060
Collective Brands, Inc.*		606		12,787
New York Times Co. — Class A*		1,131		11,084
MDC Holdings, Inc.		360		10,357
Matthews International Corp. — Class A		280		9,794
Bob Evans Farms, Inc.		290		9,558
KB Home		690		9,308
Regis Corp.		549		9,113
Timberland Co. — Class A*		370		9,098
American Greetings Corp. — Class A		380		8,421
International Speedway Corp. — Class A		279		7,301
99 Cents Only Stores*		450		7,173
Ryland Group, Inc.		417		7,102
Scholastic Corp.		229		6,765
Scientific Games Corp. — Class A*		600		5,976
Boyd Gaming Corp.*		530		5,618
Barnes & Noble, Inc.		370		5,236
Harte-Hanks, Inc.		370		4,725
Total Consumer Discretionary				1,510,145
HEALTH CARE - 5.7%
Edwards Lifesciences Corp.*		1,090		88,116
Vertex Pharmaceuticals, Inc.*		1,940		67,958
Henry Schein, Inc.*		880		54,023
Perrigo Co.		790		50,031
ResMed, Inc.*		1,440		49,882
Beckman Coulter, Inc.		660		49,652
Mettler-Toledo International, Inc.*		310		46,875
Hologic, Inc.*		2,480		46,674
Universal Health Services, Inc. — Class B		930		40,380
Endo Pharmaceuticals Holdings, Inc.*		1,100		39,281
IDEXX Laboratories, Inc.*		550		38,071
Allscripts Healthcare Solutions, Inc.*		1,780		34,301
Community Health Systems, Inc.*		877		32,773
Covance, Inc.*		620		31,874

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   53

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Pharmaceutical Product Development, Inc.		1,130	$	30,668
United Therapeutics Corp.*		480		30,346
Mednax, Inc.*		450		30,280
Omnicare, Inc.		1,110		28,183
Gen-Probe, Inc.*		460		26,841
Kinetic Concepts, Inc.*		599		25,086
Lincare Holdings, Inc.		930		24,952
Health Net, Inc.*		910		24,834
Hill-Rom Holdings, Inc.		600		23,622
Techne Corp.		350		22,984
Health Management Associates, Inc. — Class A*		2,390		22,801
Teleflex, Inc.		380		20,448
STERIS Corp.		560		20,418
Bio-Rad Laboratories, Inc. — Class A*		190		19,731
Charles River Laboratories International, Inc.*		550		19,547
VCA Antech, Inc.*		820		19,098
LifePoint Hospitals, Inc.*		500		18,375
Owens & Minor, Inc.		600		17,658
Masimo Corp.		560		16,279
Thoratec Corp.*		560		15,859
Medicis Pharmaceutical Corp. — Class A		580		15,538
Immucor, Inc.*		670		13,286
WellCare Health Plans, Inc.*		409		12,360
Kindred Healthcare, Inc.*		380		6,981
Total Health Care				1,176,066
MATERIALS - 3.5%
Lubrizol Corp.		630		67,334
Albemarle Corp.		870		48,529
Martin Marietta Materials, Inc.		429		39,571
Ashland, Inc.		750		38,145
Steel Dynamics, Inc.		2,070		37,881
Reliance Steel & Aluminum Co.		708		36,179
Sonoco Products Co.		980		32,997
Valspar Corp.		940		32,411
Aptargroup, Inc.		640		30,445
Compass Minerals International, Inc.		310		27,674
RPM International, Inc.		1,230		27,183
Packaging Corporation of America		980		25,323
Cytec Industries, Inc.		469		24,885
Cabot Corp.		620		23,343
Scotts Miracle-Gro Co. — Class A		440		22,339
Temple-Inland, Inc.		1,030		21,877
Rock-Tenn Co. — Class A		370		19,961
Greif, Inc. — Class A		300		18,570
Commercial Metals Co.		1,090		18,083
Sensient Technologies Corp.		470		17,263
Silgan Holdings, Inc.		480		17,189
Carpenter Technology Corp.		420		16,901
Intrepid Potash, Inc.*		420		15,662
Olin Corp.		760		15,595
Louisiana-Pacific Corp.*		1,260		11,919
Minerals Technologies, Inc.		180		11,774
NewMarket Corp.		90		11,103
Worthington Industries, Inc.		530		9,752
Total Materials				719,888
ENERGY - 3.1%
Cimarex Energy Co.		810		71,709
Pride International, Inc.*		1,680		55,440
Arch Coal, Inc.		1,550		54,343
Plains Exploration & Production Co.*		1,340		43,068
Forest Oil Corp.*		1,079		40,970
Oceaneering International, Inc.*		520		38,288
SM Energy Co.		600		35,358
Patterson-UTI Energy, Inc.		1,470		31,678
Southern Union Co.		1,190		28,643
Tidewater, Inc.		490		26,382
Superior Energy Services, Inc.*		750		26,243
Dril-Quip, Inc.*		330		25,648
Atwood Oceanics, Inc.*		530		19,806
Frontier Oil Corp.		1,010		18,190
Bill Barrett Corp.*		440		18,097
Unit Corp.*		380		17,662
Quicksilver Resources, Inc.*		1,120		16,509
Patriot Coal Corp.*		760		14,721
Exterran Holdings, Inc.*		600		14,370
Helix Energy Solutions Group, Inc.*		1,010		12,261
Comstock Resources, Inc.*		450		11,052
Overseas Shipholding Group, Inc.		260		9,209
Total Energy				629,647
UTILITIES - 3.0%
National Fuel Gas Co.		780		51,184
OGE Energy Corp.		930		42,352
NSTAR		990		41,768
Alliant Energy Corp.		1,060		38,976
MDU Resources Group, Inc.		1,800		36,486
Energen Corp.		690		33,299
UGI Corp.		1,050		33,159
N.V. Energy, Inc.		2,240		31,472
Aqua America, Inc.		1,310		29,449
Questar Corp.		1,670		29,075
DPL, Inc.		1,130		29,052
Atmos Energy Corp.		860		26,832
Westar Energy, Inc.		1,060		26,670
AGL Resources, Inc.		739		26,493
Great Plains Energy, Inc.		1,290		25,013
Hawaiian Electric Industries, Inc.		899		20,488
Vectren Corp.		780		19,796
Cleco Corp.		580		17,841

54   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

MID-CAP 1.5x STRATEGY FUND

	Shares		Value
WGL Holdings, Inc.		490	$	17,527
IDACORP, Inc.		470		17,381
Black Hills Corp.		370		11,100
PNM Resources, Inc.		830		10,807
Dynegy, Inc. — Class A*		980		5,508
Total Utilities				621,728
CONSUMER STAPLES - 1.9%
Energizer Holdings, Inc.*		670		48,843
Church & Dwight Company, Inc.		680		46,934
Green Mountain Coffee Roasters, Inc.*		1,110		36,475
Hansen Natural Corp.*		660		34,505
Ralcorp Holdings, Inc.*		520		33,805
Corn Products International, Inc.		720		33,120
Smithfield Foods, Inc.*		1,580		32,595
Alberto-Culver Co. — Class B		820		30,373
BJ’s Wholesale Club, Inc.*		520		24,908
Flowers Foods, Inc.		720		19,375
Ruddick Corp.		410		15,104
Lancaster Colony Corp.		180		10,296
Universal Corp.		230		9,361
Tootsie Roll Industries, Inc.		230		6,663
Total Consumer Staples				382,357
TELECOMMUNICATION SERVICES - 0.4%
Telephone & Data Systems, Inc.		880		32,164
tw telecom, Inc. — Class A*		1,440		24,552
Syniverse Holdings, Inc.*		670		20,670
Cincinnati Bell, Inc.*		1,920		5,376
Total Telecommunication Services				82,762
Total Common Stocks (Cost $7,880,009)				10,587,839
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		155		48
Total Consumer Discretionary				48
Total Warrant (Cost $—)				48

	Face
	Amount
REPURCHASE AGREEMENTS††,1 - 48.2%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/112	$	3,594,569		3,594,569
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		2,167,125		2,167,125
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		2,074,248		2,074,248
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		2,074,248		2,074,248
Total Repurchase Agreements (Cost $9,910,190)				9,910,190
Total Investments - 99.7% (Cost $17,790,199)			$	20,498,077
Cash & Other Assets, Less Liabilities - 0.3%				61,467
Total Net Assets - 100.0%			$	20,559,544

			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
March 2011 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $10,322,700)		114	$	97,201

	Units
EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse Capital, LLC January 2011 S&P MidCap 400 Index Swap, Terminating 01/28/113 (Notional Value $1,614,427)		1,779	$	(7,247	)
Morgan Stanley Capital Services, Inc. January 2011 S&P MidCap 400 Index Swap, Terminating 01/26/113 (Notional Value $2,458,396)		2,710		(11,493	)
Goldman Sachs International January 2011 S&P MidCap 400 Index Swap, Terminating 01/27/113 (Notional Value $5,709,012)		6,293		(26,116	)
(Total Notional Value $9,781,835)			$	(44,856	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
3	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   55

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	10,587,887
Repurchase agreements, at value		9,910,190
Total investments		20,498,077
Segregated cash with broker		1,004,650
Receivables:
Securities sold		11,603
Fund shares sold		291,654
Dividends		8,420
Interest		30
Total assets		21,814,434
Liabilities:
Unrealized depreciation on swap agreements		44,856
Payable for:
Swap settlement		6,251
Variation margin		69,540
Fund shares redeemed		1,098,226
Management fees		14,453
Custodian fees		530
Transfer agent/maintenance fees		4,015
Investor service fees		4,015
Portfolio accounting fees		1,606
Other		11,398
Total liabilities		1,254,890
Net assets	$	20,559,544
Net assets consist of:
Paid in capital	$	25,791,296
Accumulated net investment loss		—
Accumulated net realized loss on investments		(7,991,975	)
Net unrealized appreciation on investments		2,760,223
Net assets	$	20,559,544
Capital shares outstanding		1,000,201
Net asset value per share	$	20.56
Investments, at cost	$	7,880,009
Repurchase agreements, at cost		9,910,190
Total cost	$	17,790,199

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends	$	126,620
Interest		6,283
Total investment income		132,903
Expenses:
Management fees		129,055
Transfer agent and administrative fees		35,849
Investor service fees		35,849
Portfolio accounting fees		14,339
Trustees’ fees*		1,635
Audit and outside service fees		16,112
Printing fees		13,882
Miscellaneous		(1,359	)
Total expenses		245,362
Net investment loss		(112,459	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(745,247	)
Equity index swaps		2,737,371
Futures contracts		387,726
Net realized gain		2,379,850
Net change in unrealized appreciation (depreciation) on:
Investments		2,000,914
Equity index swaps		(525,961	)
Futures contracts		75,794
Net change in unrealized appreciation (depreciation)		1,550,747
Net realized and unrealized gain		3,930,597
Net increase in net assets resulting from operations	$	3,818,138

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

56   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(112,459	)	$	(56,342	)
Net realized gain (loss) on investments		2,379,850			(1,014,622	)
Net change in unrealized appreciation (depreciation) on investments		1,550,747			2,868,270
Net increase in net assets resulting from operations		3,818,138			1,797,306
Distributions to shareholders from:
Net investment income		—			(7,999	)
Total distributions to shareholders		—			(7,999	)
Capital share transactions:
Proceeds from sale of shares		104,638,982			69,736,981
Distributions reinvested		—			7,999
Cost of shares redeemed		(102,273,776	)		(70,308,441	)
Net increase (decrease) from capital share transactions		2,365,206			(563,461	)
Net increase in net assets		6,183,344			1,225,846
Net assets:
Beginning of year		14,376,200			13,150,354
End of year	$	20,559,544		$	14,376,200
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		6,201,083			6,229,476
Shares issued from reinvestment of distributions		—			572
Shares redeemed		(6,162,822	)		(6,608,555	)
Net increase (decrease) in shares		38,261			(378,507	)

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   57

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	14.95		$	9.81		$	21.72		$	24.20		$	30.15
Income (loss) from investment operations:
Net investment income (loss)a		(.13	)		(.07	)		.01			.28			.11
Net gain (loss) on investments (realized and unrealized)		5.74			5.22			(11.92	)		.65			3.23
Total from investment operations		5.61			5.15			(11.91	)		.93			3.34
Less distributions from:
Net investment income		—			(.01	)		—			(.40	)		(.13	)
Net realized gains		—			—			—			(3.01	)		(9.16	)
Total distributions		—			(.01	)		—			(3.41	)		(9.29	)
Net asset value, end of period	$	20.56		$	14.95		$	9.81		$	21.72		$	24.20
Total Returnb		37.55	%		52.40	%		(54.83	%)		3.60	%		10.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,560		$	14,376		$	13,150		$	27,893		$	38,986
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(0.58	%)		0.07	%		1.05	%		0.34	%
Total expenses		1.71	%		1.71	%		1.66	%		1.64	%		1.64	%
Portfolio turnover rate		176	%		61	%		163	%		368	%		478	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

58   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400 Index (the “underlying index”).

Inception: May 3, 2004

For the year ended December 31, 2010, Inverse Mid-Cap Strategy Fund returned -25.29%. Over the year, its benchmark, the S&P MidCap 400 Index turned in a 26.64% return. Inverse Mid-Cap Strategy Fund achieved a daily correlation of 84% to its benchmark of -100% of the daily price movement of the S&P MidCap 400 Index.

Information Technology (4.96%), Industrials (4.60%) and Consumer Discretionary (4.45%) provided the most performance to the index during the year. Telecommunication Services (0.11%) and Utilities (0.99%) were the smallest contributors to performance.

F5 Networks, Inc., Netflix, Inc. and BorgWarner, Inc. were among the stocks which provided the most performance to the index during the year. Vertex Pharmaceuticals, Inc., Equinix, Inc. and Lender Processing Services, Inc. were among the stocks which provided the least performance to the index during the year. Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
INVERSE MID-CAP STRATEGY FUND		-25.29	%		-9.33	%		-10.00	%
S&P MIDCAP 400 INDEX		26.64	%		5.73	%		8.19	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as equity index swap agreements, futures contracts, and options on index futures.

the RYDEX | SGI variable trust annual report   |   59

SCHEDULE OF INVESTMENTS December 31, 2010

INVERSE MID-CAP STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 30.2%
Federal Home Loan Bank1
0.00% due 01/10/11	$	300,000	$	300,000
0.07% due 01/21/11		300,000		299,987
Farmer Mac1
0.07% due 01/20/11		300,000		299,989
Total Federal Agency Discount Notes (Cost $899,976)				899,976
REPURCHASE AGREEMENTS††,2 - 47.1%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/113		792,119		792,119
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		208,826		208,826
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		199,877		199,877
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		199,877		199,877
Total Repurchase Agreements (Cost $1,400,699)				1,400,699
Total Investments - 77.3% (Cost $2,300,675)			$	2,300,675
Cash & Other Assets, Less Liabilities - 22.7%				676,667
Total Net Assets - 100.0%			$	2,977,342
			Unrealized
	Contracts		Gain
FUTURES CONTRACTS SOLD SHORT†
March 2011 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $181,100)		2	$	532
	Units
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC January 2011 S&P MidCap 400 Index Swap, Terminating 01/28/114 (Notional Value $1,841,627)		2,030	$	8,585
Goldman Sachs International January 2011 S&P MidCap 400 Index Swap, Terminating 01/27/114 (Notional Value $911,999)		1,005		1,072
Morgan Stanley Capital Services, Inc. January 2011 S&P MidCap 400 Index Swap, Terminating 01/26/114 (Notional Value $57,087)		63		256
(Total Notional Value $2,810,713)			$	9,913

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
4	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.

60   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	899,976
Repurchase agreements, at value		1,400,699
Total investments		2,300,675
Segregated cash with broker		88,345
Unrealized appreciation on swap agreements		9,913
Receivable for swap settlement		734
Receivables:
Variation margin		1,220
Fund shares sold		583,634
Interest		5
Total assets		2,984,526
Liabilities:
Payable for:
Fund shares redeemed		388
Management fees		1,909
Custodian fees		70
Transfer agent/maintenance fees		530
Investor service fees		530
Portfolio accounting fees		213
Other		3,544
Total liabilities		7,184
Net assets	$	2,977,342
Net assets consist of:
Paid in capital	$	5,664,504
Accumulated net investment loss		—
Accumulated net realized loss on investments		(2,697,607	)
Net unrealized appreciation on investments		10,445
Net assets	$	2,977,342
Capital shares outstanding		131,541
Net asset value per share	$	22.63
Investments, at cost	$	899,976
Repurchase agreements, at cost		1,400,699
Total cost	$	2,300,675

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Interest	$	5,774
Total investment income		5,774
Expenses:
Management fees		35,256
Transfer agent and administrative fees		9,793
Investor service fees		9,793
Portfolio accounting fees		3,917
Trustees’ fees*		485
Miscellaneous		7,669
Total expenses		66,913
Net investment loss		(61,139	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Equity index swaps		(1,531,197	)
Futures contracts		(413,556	)
Net realized loss		(1,944,753	)
Net change in unrealized appreciation (depreciation) on:
Equity index swaps		150,098
Futures contracts		253
Net change in unrealized appreciation (depreciation)		150,351
Net realized and unrealized loss		(1,794,402	)
Net decrease in net assets resulting from operations	$	(1,855,541	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   61

INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(61,139	)	$	(62,322	)
Net realized loss on investments		(1,944,753	)		(1,694,084	)
Net change in unrealized appreciation (depreciation) on investments		150,351			40,216
Net decrease in net assets resulting from operations		(1,855,541	)		(1,716,190	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		34,511,809			42,842,573
Cost of shares redeemed		(34,356,055	)		(41,261,796	)
Net increase from capital share transactions		155,754			1,580,777
Net decrease in net assets		(1,699,787	)		(135,413	)
Net assets:
Beginning of year		4,677,129			4,812,542
End of year	$	2,977,342		$	4,677,129
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		1,239,965			1,105,078
Shares redeemed		(1,262,816	)		(1,053,510	)
Net increase (decrease) in shares		(22,851	)		51,568

62   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	30.29		$	46.80		$	35.03		$	36.96		$	39.15
Income (loss) from investment operations:
Net investment income (loss)a		(.42	)		(.61	)		.05			1.06			1.32
Net gain (loss) on investments (realized and unrealized)		(7.24	)		(15.90	)		12.04			(1.81	)		(2.83	)
Total from investment operations		(7.66	)		(16.51	)		12.09			(.75	)		(1.51	)
Less distributions from:
Net investment income		—			—			(.32	)		(1.18	)		(.68	)
Total distributions		—			—			(.32	)		(1.18	)		(.68	)
Net asset value, end of period	$	22.63		$	30.29		$	46.80		$	35.03		$	36.96
Total Returnb		(25.29	%)		(35.28	%)		34.42	%		(1.98	%)		(3.83	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,977		$	4,677		$	4,813		$	3,029		$	5,959
Ratios to average net assets:
Net investment income (loss)		(1.56	%)		(1.58	%)		0.12	%		3.04	%		3.49	%
Total expenses		1.71	%		1.71	%		1.67	%		1.67	%		1.65	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   63

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the Russell 2000^® Index (the “underlying index”).

Inception: October 27, 2006

For the one-year period ended December 31, 2010, Russell 2000^® 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the Russell 2000 Index. Russell 2000^® 2x Strategy Fund returned 48.30% while the Russell 2000 Index returned 26.86% over the same time period.

The biggest performance contributors to the index during the period were Information Technology (6.46%), Industrials (4.61%) and Consumer Discretionary (4.44%). Telecommunication Services (0.14%), Utilities (0.59%) and Consumer Staples (0.65%) provided the least performance to the index during the year.

Riverbed Technology, Inc., VeriFone Systems, Inc. and TIBCO Software, Inc. were among the stocks which provided the most performance to the index during the year. Human Genome Sciences, Inc., Assured Guaranty Ltd. And E*TRADE Financial Corp. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 27, 2006 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

				Since Inception
	1 Year			(10/27/06)
RUSSELL 2000® 2x STRATEGY FUND		48.30	%		-10.83	%
RUSSELL 2000 INDEX		26.86	%		1.96	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 2000 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Riverbed Technology, Inc.	0.05	%
Deckers Outdoor Corp.	0.05	%
VeriFone Systems, Inc.	0.05	%
Brigham Exploration Co.	0.04	%
TIBCO Software, Inc.	0.04	%
Rackspace Hosting, Inc.	0.04	%
Salix Pharmaceuticals Ltd.	0.04	%
Hecla Mining Co.	0.04	%
Concur Technologies, Inc.	0.04	%
Solutia, Inc.	0.04	%
Top Ten Total	0.43	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

64   |   the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 14.8%
FINANCIALS - 3.0%
American Capital Ltd.*		218	$	1,648
BioMed Realty Trust, Inc.		86		1,604
Highwoods Properties, Inc.		50		1,593
SVB Financial Group*		30		1,592
Mid-America Apartment Communities, Inc.		25		1,587
CBL & Associates Properties, Inc.		90		1,575
Kilroy Realty Corp.		43		1,568
Tanger Factory Outlet Centers		30		1,536
Signature Bank *		30		1,500
MFA Financial, Inc.		176		1,436
Apollo Investment Corp.		128		1,417
Omega Healthcare Investors, Inc.		63		1,414
FirstMerit Corp.		70		1,385
Stifel Financial Corp.*		22		1,365
MGIC Investment Corp.*		132		1,345
Alterra Capital Holdings Ltd.		59		1,277
National Retail Properties, Inc.		48		1,272
Entertainment Properties Trust		27		1,249
LaSalle Hotel Properties		47		1,241
Washington Real Estate Investment Trust		40		1,240
Home Properties, Inc.		22		1,221
Platinum Underwriters Holdings Ltd.		27		1,214
ProAssurance Corp.*		20		1,212
American Campus Communities, Inc.		38		1,207
DiamondRock Hospitality Co.*		99		1,188
Iberiabank Corp.		20		1,183
Prosperity Bancshares, Inc.		30		1,178
Equity Lifestyle Properties, Inc.		20		1,119
Westamerica Bancorporation		20		1,109
Park National Corp.		15		1,090
Post Properties, Inc.		30		1,089
CNO Financial Group, Inc.*		155		1,051
NewAlliance Bancshares, Inc.		68		1,019
First American Financial Corp.		67		1,001
Montpelier Re Holdings Ltd.		50		997
Extra Space Storage, Inc.		57		992
Potlatch Corp.		30		977
Trustmark Corp.		38		944
Healthcare Realty Trust, Inc.		44		931
PHH Corp.*		40		926
Hatteras Financial Corp.		30		908
Knight Capital Group, Inc. — Class A*		64		883
United Bankshares, Inc.		30		876
Northwest Bancshares, Inc.		74		870
Colonial Properties Trust		48		866
Astoria Financial Corp.		60		835
Umpqua Holdings Corp.		68		828
Cathay General Bancorp		49		818
Ezcorp, Inc. — Class A*		30		814
National Health Investors, Inc.		18		810
Whitney Holding Corp.		57		807
American Capital Agency Corp.		28		805
EastGroup Properties, Inc.		19		804
Glacier Bancorp, Inc.		53		801
First Financial Bancorp		43		795
Tower Group, Inc.		30		767
Delphi Financial Group, Inc. — Class A		26		750
Argo Group International Holdings Ltd.		20		749
Redwood Trust, Inc.		50		747
UMB Financial Corp.		18		746
Susquehanna Bancshares, Inc.		77		745
Cash America International, Inc.		20		739
Medical Properties Trust, Inc.		68		736
Webster Financial Corp.		37		729
DuPont Fabros Technology, Inc.		34		723
DCT Industrial Trust, Inc.		136		722
Old National Bancorp		60		713
Franklin Street Properties Corp.		50		713
Sovran Self Storage, Inc.		19		699
Radian Group, Inc.		86		694
Portfolio Recovery Associates, Inc.*		9		677
Wintrust Financial Corp.		20		661
FNB Corp.		67		658
Invesco Mortgage Capital, Inc.		29		633
Hancock Holding Co.		18		627
Hersha Hospitality Trust — Class A		95		627
National Penn Bancshares, Inc.		77		618
Infinity Property & Casualty Corp.		10		618
Provident Financial Services, Inc.		40		605
Capstead Mortgage Corp.		48		604
Starwood Property Trust, Inc.		28		601
International Bancshares Corp.		30		601
Pennsylvania Real Estate Investment Trust		41		596
MB Financial, Inc.		34		589
Sunstone Hotel Investors, Inc.*		57		589
MF Global Holdings Ltd.*		70		585
Prospect Capital Corp.		54		583
Columbia Banking System, Inc.		27		569
First Midwest Bancorp, Inc.		49		564
LTC Properties, Inc.		20		562
First Cash Financial Services, Inc.*		18		558
Anworth Mortgage Asset Corp.		78		546
U-Store-It Trust		57		543
BlackRock Kelso Capital Corp.		49		542
Greenlight Capital Re Ltd. — Class A*		20		536
Associated Estates Realty Corp.		35		535
World Acceptance Corp.*		10		528
RLI Corp.		10		526
Cousins Properties, Inc.		61		509
Selective Insurance Group, Inc.		28		508
CVB Financial Corp.		58		503

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  65

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
KBW, Inc.		18	$	503
Acadia Realty Trust		27		492
Horace Mann Educators Corp.		27		487
Fifth Street Finance Corp.		40		486
Primerica, Inc.		20		485
Oritani Financial Corp.		39		477
Safety Insurance Group, Inc.		10		476
Nelnet, Inc. — Class A		20		474
Employers Holdings, Inc.		27		472
Glimcher Realty Trust		56		470
optionsXpress Holdings, Inc.		30		470
iStar Financial, Inc.*		60		469
First Commonwealth Financial Corp.		66		467
American Equity Investment Life Holding Co.		37		464
Lexington Realty Trust		58		461
Strategic Hotels & Resorts, Inc.*		87		460
Investment Technology Group, Inc.*		28		458
Dollar Financial Corp.*		16		458
Ocwen Financial Corp.*		48		458
Navigators Group, Inc.*		9		453
S&T Bancorp, Inc.		20		452
Meadowbrook Insurance Group, Inc.		44		451
Investors Real Estate Trust		50		448
Community Bank System, Inc.		16		444
Inland Real Estate Corp.		50		440
Universal Health Realty Income Trust		12		438
NBT Bancorp, Inc.		18		435
PrivateBancorp, Inc. — Class A		30		431
Government Properties Income Trust		16		429
Texas Capital Bancshares, Inc.*		20		425
Sabra Healthcare REIT, Inc.		23		423
FelCor Lodging Trust, Inc.*		60		422
MarketAxess Holdings, Inc.		20		416
Tejon Ranch Co.*		15		413
Brookline Bancorp, Inc.		38		412
Sterling Bancshares, Inc.		58		407
Pebblebrook Hotel Trust		20		406
Chemical Financial Corp.		18		399
Tompkins Financial Corp.		10		392
PS Business Parks, Inc.		7		390
Oriental Financial Group, Inc.		31		387
Forestar Group, Inc.*		20		386
WesBanco, Inc.		20		379
Walter Investment Management Corp.		21		377
Banco Latinoamericano de Comercio Exterior S.A. — Class E		20		369
Harleysville Group, Inc.		10		367
Investors Bancorp, Inc.*		28		367
BGC Partners, Inc. — Class A		44		366
Equity One, Inc.		20		364
PacWest Bancorp		17		363
City Holding Co.		10		362
National Financial Partners Corp.*		27		362
Diamond Hill Investment Group, Inc.		5		362
First Financial Bankshares, Inc.		7		358
First Financial Corp.		10		351
Sandy Spring Bancorp, Inc.		19		350
Piper Jaffray Companies, Inc.*		10		350
Trustco Bank Corp.		55		349
MCG Capital Corp.		50		349
Agree Realty Corp.		13		340
Flagstone Reinsurance Holdings S.A.		27		340
Renasant Corp.		20		338
Compass Diversified Holdings		19		336
Sun Communities, Inc.		10		333
First Industrial Realty Trust, Inc.*		38		333
Provident New York Bancorp		31		325
Boston Private Financial Holdings, Inc.		49		321
Suffolk Bancorp		13		321
First Potomac Realty Trust		19		320
Getty Realty Corp.		10		313
Education Realty Trust, Inc.		40		311
Global Indemnity plc — Class A*		15		307
Evercore Partners, Inc. — Class A		9		306
PennantPark Investment Corp.		25		306
Lakeland Financial Corp.		14		300
Hilltop Holdings, Inc.*		30		298
Hudson Valley Holding Corp.		12		297
FPIC Insurance Group, Inc.*		8		296
Artio Global Investors, Inc. — Class A		20		295
Dime Community Bancshares, Inc.		20		292
PMI Group, Inc.*		88		290
Camden National Corp.		8		290
Ashford Hospitality Trust, Inc.*		30		290
Retail Opportunity Investments Corp.		29		287
Simmons First National Corp. — Class A		10		285
Internet Capital Group, Inc.*		20		284
eHealth, Inc.*		20		284
Flushing Financial Corp.		20		280
Arrow Financial Corp.		10		275
Pinnacle Financial Partners, Inc.*		20		272
Independent Bank Corp.		10		271
TowneBank		17		270
Duff & Phelps Corp. — Class A		16		270
Newcastle Investment Corp.*		40		268
Western Alliance Bancorp*		36		265
Oppenheimer Holdings, Inc. — Class A		10		262
Bank of the Ozarks, Inc.		6		260
Cypress Sharpridge Investments, Inc.		20		258
Urstadt Biddle Properties, Inc. — Class A		13		253
Cedar Shopping Centers, Inc.		40		252
NorthStar Realty Finance Corp.		52		247
Financial Institutions, Inc.		13		247

66   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Advance America Cash Advance Centers, Inc.		43	$	243
Sterling Bancorp — Class N		23		241
German American Bancorp, Inc.		13		239
International Assets Holding Corp.*		10		236
Great Southern Bancorp, Inc.		10		236
Maiden Holdings Ltd.		30		236
Baldwin & Lyons, Inc. — Class B		10		235
Cohen & Steers, Inc.		9		235
MVC Capital, Inc.		16		234
Southside Bancshares, Inc.		11		232
Community Trust Bancorp, Inc.		8		232
TradeStation Group, Inc.*		34		230
Ramco-Gershenson Properties Trust		18		224
Berkshire Hills Bancorp, Inc.		10		221
SY Bancorp, Inc.		9		221
Washington Trust Bancorp, Inc.		10		219
Main Street Capital Corp.		12		218
Ames National Corp.		10		217
Kite Realty Group Trust		40		216
American Safety Insurance Holdings Ltd.*		10		214
CNA Surety Corp.*		9		213
TICC Capital Corp.		19		213
NewStar Financial, Inc.*		20		211
GFI Group, Inc.		45		211
Ameris Bancorp		20		211
CapLease, Inc.		36		210
Cardinal Financial Corp.		18		209
Hercules Technology Growth Capital, Inc.		20		207
FBL Financial Group, Inc. — Class A		7		201
Colony Financial, Inc.		10		200
Resource Capital Corp.		27		199
Territorial Bancorp, Inc.		10		199
Financial Engines, Inc.*		10		198
Avatar Holdings, Inc.*		10		198
Phoenix Companies, Inc.*		78		198
SCBT Financial Corp.		6		197
Peapack Gladstone Financial Corp.		15		196
Winthrop Realty Trust		15		192
Univest Corporation of Pennsylvania		10		192
Pico Holdings, Inc.*		6		191
Triangle Capital Corp.		10		190
Gladstone Commercial Corp.		10		188
Encore Capital Group, Inc.*		8		188
PennyMac Mortgage Investment Trust		10		182
Terreno Realty Corp.*		10		179
Danvers Bancorp, Inc.		10		177
Home Bancshares, Inc.		8		176
Two Harbors Investment Corp.		18		176
AMERISAFE, Inc.*		10		175
Heartland Financial USA, Inc.		10		175
Bryn Mawr Bank Corp.		10		174
Centerstate Banks, Inc.		22		174
State Auto Financial Corp.		10		174
First Financial Holdings, Inc.		15		173
Chatham Lodging Trust		10		172
Monmouth Real Estate Investment Corp. — Class A		20		170
West Coast Bancorp*		60		169
Cogdell Spencer, Inc.		29		168
One Liberty Properties, Inc.		10		167
Westfield Financial, Inc.		18		166
First Mercury Financial Corp.		10		164
Apollo Commercial Real Estate Finance, Inc.		10		164
Farmer Mac — Class C		10		163
ESB Financial Corp.		10		162
1st Source Corp.		8		162
Sierra Bancorp		15		161
First Merchants Corp.		18		159
First Bancorp, Inc.		10		158
Amtrust Financial Services, Inc.		9		158
Citizens Republic Bancorp, Inc.*		256		157
Nara Bancorp, Inc.*		16		157
United Fire & Casualty Co.		7		156
Epoch Holding Corp.		10		155
Bancorp, Inc.*		15		153
First Interstate Bancsystem, Inc. — Class A		10		152
First Community Bancshares, Inc.		10		149
Citizens & Northern Corp.		10		149
CNB Financial Corp.		10		148
Eagle Bancorp, Inc.*		10		144
Republic Bancorp, Inc. — Class A		6		143
RAIT Financial Trust*		65		142
Beneficial Mutual Bancorp, Inc.*		16		141
Parkway Properties, Inc.		8		140
Calamos Asset Management, Inc. — Class A		10		140
Heritage Financial Corp.*		10		139
Bank Mutual Corp.		29		139
First Bancorp		9		138
United Financial Bancorp, Inc.		9		137
Safeguard Scientifics, Inc.*		8		137
Center Financial Corp.*		18		136
OmniAmerican Bancorp, Inc.*		10		135
Citizens, Inc.*		18		134
Northfield Bancorp, Inc.		10		133
ESSA Bancorp, Inc.		10		132
First Busey Corp.		28		132
Taylor Capital Group, Inc.*		10		131
Dynex Capital, Inc.		12		131
CreXus Investment Corp.		10		131
THL Credit, Inc.		10		130
Trico Bancshares		8		129
OceanFirst Financial Corp.		10		129

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  67

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Marlin Business Services Corp.*		10	$	126
Capital City Bank Group, Inc.		10		126
Enterprise Financial Services Corp.		12		126
Southwest Bancorp, Inc.		10		124
Rockville Financial, Inc.		10		122
Excel Trust, Inc.		10		121
Abington Bancorp, Inc.		10		119
Union First Market Bankshares Corp.		8		118
United Community Banks, Inc.*		60		117
Donegal Group, Inc. — Class A		8		116
Gladstone Capital Corp.		10		115
FBR Capital Markets Corp.*		30		115
Chesapeake Lodging Trust		6		113
Gleacher & Company, Inc.*		47		111
Peoples Bancorp, Inc.		7		110
CoBiz Financial, Inc.		18		109
Clifton Savings Bancorp, Inc.		10		108
Meridian Interstate Bancorp, Inc.*		9		106
Roma Financial Corp.		10		106
Encore Bancshares, Inc.*		10		103
UMH Properties, Inc.		10		102
Pacific Continental Corp.		10		101
Presidential Life Corp.		10		99
HFF, Inc. — Class A*		10		97
Cowen Group, Inc. — Class A*		20		93
State Bancorp, Inc.		10		93
Hallmark Financial Services*		10		91
SWS Group, Inc.		18		91
Kennedy-Wilson Holdings, Inc.*		9		90
BankFinancial Corp.		9		88
Harris & Harris Group, Inc.*		20		88
StellarOne Corp.		6		87
First Marblehead Corp.*		40		87
Kearny Financial Corp.		10		86
SeaBright Holdings, Inc.		9		83
Washington Banking Co.		6		82
Medallion Financial Corp.		10		82
Asta Funding, Inc.		10		81
Sanders Morris Harris Group, Inc.		11		80
West Bancorporation, Inc.		10		78
Metro Bancorp, Inc.*		7		77
Hanmi Financial Corp.*		67		77
JMP Group, Inc.		10		76
Wilshire Bancorp, Inc.		10		76
Thomas Properties Group, Inc.*		18		76
MPG Office Trust, Inc.*		27		74
Home Federal Bancorp, Inc.		6		74
NGP Capital Resources Co.		8		74
LaBranche & Company, Inc.*		20		72
ViewPoint Financial Group		6		70
Stewart Information Services Corp.		6		69
1st United Bancorp, Inc.*		10		69
First BanCorp*		148		68
Crawford & Co. — Class B*		20		68
Ladenburg Thalmann Financial Services, Inc.*		57		67
Lakeland Bancorp, Inc.		6		66
First South Bancorp, Inc.		10		65
CompuCredit Holdings Corp.*		9		63
MainSource Financial Group, Inc.		6		62
Virginia Commerce Bancorp, Inc.*		10		62
Gerova Financial Group Ltd.*		2		60
Pzena Investment Management, Inc. — Class A		8		59
Mission West Properties, Inc.		8		54
Primus Guaranty Ltd.*		10		51
Penson Worldwide, Inc.*		10		49
Universal Insurance Holdings, Inc.		10		49
Flagstar Bancorp, Inc.*		29		47
Gladstone Investment Corp.		6		46
Asset Acceptance Capital Corp.*		7		42
Green Bankshares, Inc.*		10		32
Rodman & Renshaw Capital Group, Inc.*		10		27
National Interstate Corp.		1		21
Doral Financial Corp.*		10		14
Total Financials				153,538
INFORMATION TECHNOLOGY - 2.7%
Riverbed Technology, Inc.*		76		2,673
VeriFone Systems, Inc.*		61		2,352
TIBCO Software, Inc.*		108		2,129
Rackspace Hosting, Inc.*		62		1,947
Concur Technologies, Inc.*		35		1,818
Parametric Technology Corp.*		78		1,757
Acme Packet, Inc.*		32		1,701
Jack Henry & Associates, Inc.		58		1,691
ADTRAN, Inc.		42		1,521
Finisar Corp.*		50		1,484
Ariba, Inc.*		59		1,386
Wright Express Corp.*		30		1,380
RF Micro Devices, Inc.*		176		1,294
Veeco Instruments, Inc.*		30		1,289
MicroStrategy, Inc. — Class A*		15		1,282
Netlogic Microsystems, Inc.*		40		1,256
InterDigital, Inc.		30		1,249
Progress Software Corp.*		29		1,227
TriQuint Semiconductor, Inc.*		100		1,169
Loral Space & Communications, Inc.*		15		1,147
Microsemi Corp.*		50		1,145
Cavium Networks, Inc.*		30		1,130
SuccessFactors, Inc.*		39		1,129
Aruba Networks, Inc.*		53		1,107
Quest Software, Inc.*		39		1,082
CACI International, Inc. — Class A*		20		1,068
Plantronics, Inc.		28		1,042
Hittite Microwave Corp.*		17		1,038
Anixter International, Inc.		17		1,015
JDA Software Group, Inc.*		35		980

68   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Viasat, Inc.*		22	$	977
Taleo Corp. — Class A*		35		968
Plexus Corp.*		30		928
Fortinet, Inc.*		28		906
Semtech Corp.*		40		906
GSI Commerce, Inc.*		39		905
Cymer, Inc.*		20		901
Blue Coat Systems, Inc.*		30		896
Digital River, Inc.*		26		895
Arris Group, Inc.*		79		886
Cognex Corp.		30		883
Ultimate Software Group, Inc.*		18		875
CommVault Systems, Inc.*		30		859
Cabot Microelectronics Corp.*		20		829
Sapient Corp.		68		823
j2 Global Communications, Inc.*		28		811
Cirrus Logic, Inc.*		50		799
Lawson Software, Inc.*		86		795
Mentor Graphics Corp.*		66		792
Unisys Corp.*		30		777
Constant Contact, Inc.*		25		775
Omnivision Technologies, Inc.*		26		770
ValueClick, Inc.*		48		769
Blackbaud, Inc.		29		751
TTM Technologies, Inc.*		49		731
Benchmark Electronics, Inc.*		40		726
Power Integrations, Inc.		18		723
Coherent, Inc.*		16		722
Integrated Device Technology, Inc.*		107		713
Rofin-Sinar Technologies, Inc.*		20		709
OpenTable, Inc.*		10		705
Fair Isaac Corp.		30		701
Acxiom Corp.*		40		686
MKS Instruments, Inc.*		28		686
Blackboard, Inc.*		16		661
Entegris, Inc.*		88		657
TiVo, Inc.*		76		656
ACI Worldwide, Inc.*		24		645
Scansource, Inc.*		20		638
IPG Photonics Corp.*		20		632
STEC, Inc.*		35		618
Art Technology Group, Inc.*		103		616
Take-Two Interactive Software, Inc.*		50		612
Websense, Inc.*		30		607
Netgear, Inc.*		18		606
Earthlink, Inc.		70		602
Ebix, Inc.*		25		592
MAXIMUS, Inc.		9		590
Infinera Corp.*		57		589
L-1 Identity Solutions, Inc. — Class 1*		49		584
Emulex Corp.*		50		583
Tessera Technologies, Inc.*		26		576
Checkpoint Systems, Inc.*		27		555
Comtech Telecommunications Corp.		20		555
SRA International, Inc. — Class A*		27		552
Compellent Technologies, Inc.*		20		552
Universal Display Corp.*		18		552
DealerTrack Holdings, Inc.*		27		542
Sanmina-SCI Corp.*		47		540
FEI Co.*		20		528
DG FastChannel, Inc.*		18		520
Sourcefire, Inc.*		20		519
Terremark Worldwide, Inc.*		40		518
Amkor Technology, Inc.*		70		517
Power-One, Inc.*		50		510
Quantum Corp.*		137		510
ATMI, Inc.*		25		498
DTS, Inc.*		10		490
Harmonic, Inc.*		57		488
Diodes, Inc.*		18		486
SAVVIS, Inc.*		19		485
Lattice Semiconductor Corp.*		80		485
Aspen Technology, Inc.*		38		483
Syntel, Inc.		10		478
Entropic Communications, Inc.*		39		471
Euronet Worldwide, Inc.*		27		471
Littelfuse, Inc.		10		471
Synaptics, Inc.*		16		470
Sonic Solutions, Inc.*		31		465
Netscout Systems, Inc.*		20		460
Brightpoint, Inc.*		52		454
LogMeIn, Inc.*		10		443
SolarWinds, Inc.*		23		443
Tekelec*		37		441
Volterra Semiconductor Corp.*		19		440
MIPS Technologies, Inc. — Class A*		29		440
Electronics for Imaging, Inc.*		30		429
Micrel, Inc.		33		429
Applied Micro Circuits Corp.*		39		417
Tyler Technologies, Inc.*		20		415
Mantech International Corp. — Class A*		10		413
TeleTech Holdings, Inc.*		20		412
Advent Software, Inc.*		7		405
NIC, Inc.		41		398
Insight Enterprises, Inc.*		30		395
Oclaro, Inc.*		30		394
Bottomline Technologies, Inc.*		18		391
United Online, Inc.		58		383
Rogers Corp.*		10		382
Intermec, Inc.*		30		380
Cass Information Systems, Inc.		10		379
CSG Systems International, Inc.*		20		379
Ultratech, Inc.*		19		378
iGate Corp.		19		374
TNS, Inc.*		18		374
Cardtronics, Inc.*		21		372
Mercury Computer Systems, Inc.*		20		368
Silicon Image, Inc.*		50		367

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  69

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Pegasystems, Inc.		10	$	366
Sonus Networks, Inc.*		137		366
OSI Systems, Inc.*		10		364
Brooks Automation, Inc.*		40		363
Forrester Research, Inc.		10		353
Radiant Systems, Inc.*		18		352
Black Box Corp.		9		345
Kulicke & Soffa Industries, Inc.*		47		338
Ixia*		20		336
Newport Corp.*		19		330
Electro Scientific Industries, Inc.*		20		321
LivePerson, Inc.*		28		316
Smith Micro Software, Inc.*		20		315
Avid Technology, Inc.*		18		314
SYNNEX Corp.*		10		312
Bel Fuse, Inc. — Class B		13		311
Heartland Payment Systems, Inc.		20		308
Manhattan Associates, Inc.*		10		305
Epicor Software Corp.*		30		303
Maxwell Technologies, Inc.*		16		302
Monolithic Power Systems, Inc.*		18		297
VirnetX Holding Corp.		20		297
Xyratex Ltd.*		18		294
Standard Microsystems Corp.*		10		288
Daktronics, Inc.		18		287
Sigma Designs, Inc.*		20		283
Ancestry.com, Inc.*		10		283
ExlService Holdings, Inc.*		13		279
Vocus, Inc.*		10		277
Synchronoss Technologies, Inc.*		10		267
Cohu, Inc.		16		265
Anadigics, Inc.*		38		263
Stratasys, Inc.*		8		261
Methode Electronics, Inc.		20		259
NetSuite, Inc.*		10		250
Perficient, Inc.*		20		250
Move, Inc.*		97		249
EPIQ Systems, Inc.		18		247
Zoran Corp.*		28		246
Hypercom Corp.*		29		243
Formfactor, Inc.*		27		240
RightNow Technologies, Inc.*		10		237
Axcelis Technologies, Inc.*		68		235
Measurement Specialties, Inc.*		8		235
ShoreTel, Inc.*		30		234
Advanced Energy Industries, Inc.*		17		232
THQ, Inc.*		38		230
LTX-Credence Corp.*		31		229
MTS Systems Corp.		6		225
comScore, Inc.*		10		223
Powerwave Technologies, Inc.*		87		221
Pericom Semiconductor Corp.*		20		220
Rubicon Technology, Inc.*		10		211
IXYS Corp.*		18		209
AXT, Inc.*		20		209
Spansion, Inc. — Class A*		10		207
Sycamore Networks, Inc.		10		206
SS&C Technologies Holdings, Inc.*		10		205
Ceva, Inc.*		10		205
Echelon Corp.*		20		204
Aviat Networks, Inc.*		40		203
SMART Modular Technologies WWH, Inc.*		35		202
RealNetworks, Inc.*		48		202
ModusLink Global Solutions, Inc.*		30		201
Digi International, Inc.*		18		200
CTS Corp.		18		199
Symmetricom, Inc.*		28		199
FARO Technologies, Inc.*		6		197
support.com, Inc.*		30		194
Supertex, Inc.*		8		193
S1 Corp.*		28		193
Novatel Wireless, Inc.*		20		191
Magma Design Automation, Inc.*		38		190
Opnet Technologies, Inc.		7		187
Imation Corp.*		18		186
Multi-Fineline Electronix, Inc.*		7		185
Wave Systems Corp. — Class A*		47		185
Oplink Communications, Inc.*		10		185
Super Micro Computer, Inc.*		16		185
Interactive Intelligence, Inc.*		7		183
Limelight Networks, Inc.*		31		180
Park Electrochemical Corp.		6		180
Extreme Networks*		58		179
Radisys Corp.*		20		178
Ciber, Inc.*		38		178
Renaissance Learning, Inc.		15		178
Photronics, Inc.*		30		177
Seachange International, Inc.*		20		171
Actuate Corp.*		30		171
Zix Corp.*		40		171
Internap Network Services Corp.*		28		170
Rosetta Stone, Inc.*		8		170
Kopin Corp.*		40		166
Infospace, Inc.*		20		166
UTStarcom, Inc.*		80		165
Rudolph Technologies, Inc.*		20		165
Virtusa Corp.*		10		164
DSP Group, Inc.*		20		163
Electro Rent Corp.		10		162
Integrated Silicon Solution, Inc.*		20		161
Pulse Electronics Corp.		30		160
Knot, Inc.*		16		158
QuinStreet, Inc.*		8		154
Silicon Graphics International Corp.*		17		154
Kenexa Corp.*		7		153
Spectrum Control, Inc.*		10		150
Keynote Systems, Inc.		10		146
KIT Digital, Inc.*		9		144

70   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Gerber Scientific, Inc.*		18	$	142
Liquidity Services, Inc.*		10		140
Lionbridge Technologies, Inc.*		36		133
FSI International, Inc.*		30		133
Stamps.com, Inc.		10		132
TeleCommunication Systems, Inc. — Class A*		28		131
VASCO Data Security International, Inc.*		16		130
Cray, Inc.*		18		129
MoneyGram International, Inc.*		47		127
Intevac, Inc.*		9		126
Exar Corp.*		18		126
Anaren, Inc.*		6		125
Comverge, Inc.*		18		124
Saba Software, Inc.*		20		122
Mindspeed Technologies, Inc.*		20		122
Echo Global Logistics, Inc.*		10		120
Advanced Analogic Technologies, Inc.*		30		120
EMS Technologies, Inc.*		6		119
DDi Corp.		10		118
Online Resources Corp.*		25		116
Dice Holdings, Inc.*		8		115
Immersion Corp.*		17		114
PROS Holdings, Inc.*		10		114
LoopNet, Inc.*		10		111
MoSys, Inc.*		19		108
Openwave Systems, Inc.*		50		106
X-Rite, Inc.*		23		105
Mattson Technology, Inc.*		35		105
Rimage Corp.*		7		104
TechTarget, Inc.*		13		103
Nanometrics, Inc.*		8		103
Globecomm Systems, Inc.*		10		100
BigBand Networks, Inc.*		35		98
Computer Task Group, Inc.*		9		98
Zygo Corp.*		8		98
DemandTec, Inc.*		9		98
Marchex, Inc. — Class A		10		95
Ultra Clean Holdings, Inc.*		10		93
Network Equipment Technologies, Inc.*		20		93
Global Cash Access Holdings, Inc.*		29		93
SRS Labs, Inc.*		10		88
Occam Networks, Inc.*		10		87
Trident Microsystems, Inc.*		48		85
KVH Industries, Inc.*		7		84
Richardson Electronics Ltd.		7		82
GSI Technology, Inc.*		10		81
Conexant Systems, Inc.*		48		78
CDC Corp. — Class A*		22		77
Hutchinson Technology, Inc.*		20		74
Evergreen Solar, Inc.*		126		73
TeleNav, Inc.*		10		73
PLX Technology, Inc.*		20		72
Guidance Software, Inc.*		10		72
Hackett Group, Inc.*		20		70
Integral Systems, Inc.*		7		69
FalconStor Software, Inc.*		20		67
Monotype Imaging Holdings, Inc.*		6		67
Deltek, Inc.*		9		65
Local.com Corp.*		10		65
PC Connection, Inc.*		7		62
PC-Telephone, Inc.*		10		60
Tier Technologies, Inc. — Class B*		10		60
Opnext, Inc.*		32		56
Agilysys, Inc.*		9		51
PDF Solutions, Inc.*		10		48
American Software, Inc. — Class A		7		47
Presstek, Inc.*		20		44
QAD, Inc. — Class A*		4		36
Network Engines, Inc.*		18		27
Ikanos Communications, Inc.*		20		27
QAD, Inc. — Class B*		1		10
Total Information Technology				138,058
INDUSTRIALS - 2.4%
Baldor Electric Co.		28		1,765
Esterline Technologies Corp.*		25		1,715
Clean Harbors, Inc.*		20		1,682
Nordson Corp.		18		1,654
Acuity Brands, Inc.		28		1,615
GrafTech International Ltd.*		77		1,528
Genesee & Wyoming, Inc. — Class A*		26		1,377
Woodward Governor Co.		36		1,352
United Stationers, Inc.*		20		1,276
Watsco, Inc.		20		1,262
ArvinMeritor, Inc.*		60		1,231
Moog, Inc. — Class A*		30		1,194
JetBlue Airways Corp.*		180		1,190
EMCOR Group, Inc.*		40		1,159
CLARCOR, Inc.		27		1,158
Alaska Air Group, Inc.*		20		1,134
Atlas Air Worldwide Holdings, Inc.*		20		1,117
Dollar Thrifty Automotive Group, Inc.*		23		1,087
Tetra Tech, Inc.*		43		1,078
US Airways Group, Inc.*		107		1,071
Actuant Corp. — Class A		40		1,065
EnerSys*		33		1,060
Avis Budget Group, Inc.*		68		1,058
Hexcel Corp.*		57		1,031
Belden, Inc.		28		1,031
Rollins, Inc.		52		1,027
Curtiss-Wright Corp.		30		996
Geo Group, Inc.*		40		986
Brady Corp. — Class A		30		978
Applied Industrial Technologies, Inc.		30		974

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  71

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Herman Miller, Inc.		37	$	936
HNI Corp.		30		936
United Rentals, Inc.*		40		910
Triumph Group, Inc.		10		894
Teledyne Technologies, Inc.*		20		879
ABM Industries, Inc.		33		868
HEICO Corp.		17		868
Old Dominion Freight Line, Inc.*		27		864
American Science & Engineering, Inc.		10		852
Simpson Manufacturing Company, Inc.		27		835
II-VI, Inc.*		18		834
American Superconductor Corp.*		29		829
Kaydon Corp.		20		814
Brink’s Co.		30		806
AAR Corp.*		29		797
Franklin Electric Company, Inc.		20		778
Ameron International Corp.		10		764
AO Smith Corp.		20		762
Corporate Executive Board Co.		20		751
Ladish Company, Inc.*		15		729
ESCO Technologies, Inc.		19		719
Insituform Technologies, Inc. — Class A*		27		716
Cascade Corp.		15		709
HUB Group, Inc. — Class A*		20		703
Korn*		30		693
SYKES Enterprises, Inc.*		34		689
Knight Transportation, Inc.		36		684
Healthcare Services Group, Inc.		42		683
Robbins & Myers, Inc.		19		680
Werner Enterprises, Inc.		30		678
Middleby Corp.*		8		675
Watts Water Technologies, Inc. — Class A		18		659
Orbital Sciences Corp.*		38		651
AirTran Holdings, Inc.*		86		636
CIRCOR International, Inc.		15		634
Mine Safety Appliances Co.		20		623
Mueller Industries, Inc.		19		621
Barnes Group, Inc.		30		620
Chart Industries, Inc.*		18		608
DigitalGlobe, Inc.*		19		602
Deluxe Corp.		26		599
Lindsay Corp.		10		594
Skywest, Inc.		38		594
GeoEye, Inc.*		14		593
Amerco, Inc.*		6		576
Badger Meter, Inc.		13		575
Forward Air Corp.		20		568
Ceradyne, Inc.*		18		568
Resources Connection, Inc.		30		558
Kaman Corp.		19		552
Briggs & Stratton Corp.		28		551
Unifirst Corp.		10		550
Granite Construction, Inc.		20		549
Arkansas Best Corp.		20		548
TrueBlue, Inc.*		30		540
Beacon Roofing Supply, Inc.*		30		536
Steelcase, Inc. — Class A		50		529
CoStar Group, Inc.*		9		518
McGrath Rentcorp		19		498
MasTec, Inc.*		34		496
Allegiant Travel Co. — Class A		10		492
Heartland Express, Inc.		30		481
Albany International Corp. — Class A		20		474
Cubic Corp.		10		472
Interface, Inc. — Class A		30		469
Acacia Research — Acacia Technologies*		18		467
Interline Brands, Inc.*		20		455
Knoll, Inc.		27		452
Wabash National Corp.*		38		450
A123 Systems, Inc.*		47		448
Consolidated Graphics, Inc.*		9		436
Tutor Perini Corp.		20		428
Ampco-Pittsburgh Corp.		15		421
Dycom Industries, Inc.*		28		413
Blount International, Inc.*		26		410
LB Foster Co. — Class A*		10		409
Mueller Water Products, Inc. — Class A		97		404
John Bean Technologies Corp.		20		403
AZZ, Inc.		10		400
Altra Holdings, Inc.*		20		397
RBC Bearings, Inc.*		10		391
Advisory Board Co.*		8		381
Quanex Building Products Corp.		20		379
Sun Hydraulics Corp.		10		378
Exponent, Inc.*		10		375
Griffon Corp.*		29		369
American Woodmark Corp.		15		368
Rush Enterprises, Inc. — Class A*		18		368
Sauer-Danfoss, Inc.*		13		367
Team, Inc.*		15		363
ICF International, Inc.*		14		360
Satcon Technology Corp.*		80		360
Kelly Services, Inc. — Class A*		19		357
Titan International, Inc.		18		352
Tredegar Corp.		18		349
GT Solar International, Inc.*		38		347
EnergySolutions, Inc.		62		345
Layne Christensen Co.*		10		344
Ennis, Inc.		20		342
ACCO Brands Corp.*		40		341
EnerNOC, Inc.*		14		335
Mobile Mini, Inc.*		17		335
Raven Industries, Inc.		7		334

72   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
EnPro Industries, Inc.*		8	$	332
Colfax Corp.*		18		331
Viad Corp.		13		331
Powell Industries, Inc.*		10		329
Ducommun, Inc.		15		327
Gorman-Rupp Co.		10		323
Dynamex, Inc.*		13		322
Air Transport Services Group, Inc.*		40		316
3D Systems Corp.*		10		315
Trex Company, Inc.*		13		311
Michael Baker Corp.*		10		311
Great Lakes Dredge & Dock Corp.		42		310
TAL International Group, Inc.		10		309
Applied Signal Technology, Inc.		8		303
Standex International Corp.		10		299
SFN Group, Inc.*		30		293
Aircastle Ltd.		28		293
Commercial Vehicle Group, Inc.*		18		292
Astec Industries, Inc.*		9		292
FreightCar America, Inc.		10		289
Textainer Group Holdings Ltd.		10		285
RSC Holdings, Inc.*		29		282
Federal Signal Corp.		41		281
G&K Services, Inc. — Class A		9		278
Kforce, Inc.*		17		275
Universal Forest Products, Inc.		7		272
Navigant Consulting, Inc.*		29		267
Force Protection, Inc.*		48		264
RailAmerica, Inc.*		20		259
Heidrick & Struggles International, Inc.		9		258
CAI International, Inc.*		13		255
Multi-Color Corp.		13		253
Encore Wire Corp.		10		251
Standard Parking Corp.*		13		246
Polypore International, Inc.*		6		244
Gibraltar Industries, Inc.*		18		244
Northwest Pipe Co.*		10		240
DXP Enterprises, Inc.*		10		240
Twin Disc, Inc.		8		239
Huron Consulting Group, Inc.*		9		238
Kadant, Inc.*		10		236
CRA International, Inc.*		10		235
GenCorp, Inc.*		45		233
Orion Marine Group, Inc.*		20		232
M&F Worldwide Corp.*		10		231
Tennant Co.		6		230
Genco Shipping & Trading Ltd.*		16		230
Apogee Enterprises, Inc.		17		229
Dynamic Materials Corp.		10		226
AAON, Inc.		8		226
Comfort Systems USA, Inc.		17		224
Dolan Co.*		16		223
Aerovironment, Inc.*		8		215
Cenveo, Inc.*		40		214
MYR Group, Inc.*		10		210
Astronics Corp.*		10		210
Park-Ohio Holdings Corp.*		10		209
Schawk, Inc. — Class A		10		206
Hawaiian Holdings, Inc.*		26		204
Eagle Bulk Shipping, Inc.*		40		199
H&E Equipment Services, Inc.*		17		197
Titan Machinery, Inc.*		10		193
Marten Transport Ltd.		9		192
Greenbrier Companies, Inc.*		9		189
CDI Corp.		10		186
Columbus McKinnon Corp.*		9		183
Taser International, Inc.*		38		179
Administaff, Inc.		6		176
US Ecology, Inc.		10		174
Ener1, Inc.*		45		171
CBIZ, Inc.*		27		168
Vicor Corp.		10		164
Trimas Corp.*		8		164
On Assignment, Inc.*		20		163
Hill International, Inc.*		25		162
Generac Holdings, Inc.*		10		162
LMI Aerospace, Inc.*		10		160
Capstone Turbine Corp.*		164		157
LaBarge, Inc.*		10		157
Barrett Business Services, Inc.		10		155
American Railcar Industries, Inc.*		7		155
Aceto Corp.		17		153
Excel Maritime Carriers Ltd. — Class A*		27		152
APAC Customer Services, Inc.*		25		152
Douglas Dynamics, Inc.		10		152
Republic Airways Holdings, Inc.*		20		146
Roadrunner Transportation Systems, Inc.*		10		145
American Reprographics Co.*		19		144
Primoris Services Corp.		15		143
Advanced Battery Technologies, Inc.*		37		142
Miller Industries, Inc.		10		142
Graham Corp.		7		140
NCI Building Systems, Inc.*		10		140
School Specialty, Inc.*		10		139
FuelCell Energy, Inc.*		60		139
Herley Industries, Inc.*		8		139
Kimball International, Inc. — Class B		20		138
Energy Conversion Devices, Inc.*		30		138
Mistras Group, Inc.*		10		135
Broadwind Energy, Inc.*		58		134
USA Truck, Inc.*		10		132
Kratos Defense & Security Solutions, Inc.*		10		132

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  73

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Furmanite Corp.*		19	$	131
Innerworkings, Inc.*		20		131
Tecumseh Products Co. — Class A*		10		131
Sterling Construction Company, Inc.*		10		130
Metalico, Inc.*		22		129
Casella Waste Systems, Inc. — Class A*		18		128
Courier Corp.		8		124
Houston Wire & Cable Co.		9		121
Hudson Highland Group, Inc.*		20		117
Pacer International, Inc.*		17		116
Volt Information Sciences, Inc.*		13		112
Insteel Industries, Inc.		9		112
Flow International Corp.*		27		110
Microvision, Inc.*		57		106
GP Strategies Corp.*		10		102
Baltic Trading Ltd.		10		102
Saia, Inc.*		6		100
PMFG, Inc.*		6		98
Fuel Tech, Inc.*		10		97
Energy Recovery, Inc.*		26		95
Argan, Inc.*		10		93
Quality Distribution, Inc.*		10		91
Celadon Group, Inc.*		6		89
Franklin Covey Co.*		10		86
Pike Electric Corp.*		10		86
PowerSecure International, Inc.*		10		78
LSI Industries, Inc.		9		76
Horizon Lines, Inc. — Class A		17		74
Pinnacle Airlines Corp.*		9		71
Met-Pro Corp.		6		71
Lydall, Inc.*		8		64
Coleman Cable, Inc.*		10		63
Builders FirstSource, Inc.*		30		59
Ultrapetrol Bahamas Ltd.*		8		51
UQM Technologies, Inc.*		18		41
Applied Energetics, Inc.*		48		41
BlueLinx Holdings, Inc.*		10		37
Standard Register Co.		10		34
LECG Corp.*		20		28
PGT, Inc.*		9		22
Hoku Corp.*		8		21
Total Industrials				120,926
CONSUMER DISCRETIONARY — 2.1%
Deckers Outdoor Corp.*		30		2,392
Sotheby’s		37		1,665
Tenneco, Inc.*		40		1,646
Warnaco Group, Inc.*		29		1,597
Polaris Industries, Inc.		20		1,560
Dana Holding Corp.*		87		1,497
Rent-A-Center, Inc. — Class A		40		1,291
Life Time Fitness, Inc.*		30		1,230
Cheesecake Factory, Inc.*		40		1,226
Jo-Ann Stores, Inc.*		20		1,204
Carter’s, Inc.*		40		1,180
Dillard’s, Inc. — Class A		30		1,138
CROCS, Inc.*		65		1,113
Brunswick Corp.		58		1,087
Cooper Tire & Rubber Co.		45		1,061
Ascena Retail Group, Inc.*		40		1,057
Iconix Brand Group, Inc.*		54		1,043
AnnTaylor Stores Corp.*		38		1,041
Vail Resorts, Inc.*		20		1,041
Cracker Barrel Old Country Store, Inc.		19		1,041
OfficeMax, Inc.*		58		1,027
Coinstar, Inc.*		18		1,016
Live Nation Entertainment, Inc.*		87		994
Eastman Kodak Co.*		185		992
Under Armour, Inc. — Class A*		18		987
PF Chang’s China Bistro, Inc.		20		969
Saks, Inc.*		90		963
Wolverine World Wide, Inc.		30		956
Jos A. Bank Clothiers, Inc.*		23		927
HSN, Inc.*		30		919
Jones Group, Inc.		57		886
Shutterfly, Inc.*		25		876
Valassis Communications, Inc.*		27		873
Sally Beauty Holdings, Inc.*		58		843
Steven Madden Ltd.*		20		834
Arbitron, Inc.		20		830
Jack in the Box, Inc.*		38		803
Collective Brands, Inc.*		38		802
Childrens Place Retail Stores, Inc.*		16		794
Orient-Express Hotels Ltd. — Class A*		61		792
Buckle, Inc.		20		755
Group 1 Automotive, Inc.		18		752
Genesco, Inc.*		20		750
Helen of Troy Ltd.*		25		743
Cinemark Holdings, Inc.		43		741
Hibbett Sports, Inc.*		20		738
Timberland Co. — Class A*		30		738
Gaylord Entertainment Co.*		20		719
Pier 1 Imports, Inc.*		68		714
Steiner Leisure Ltd.*		15		700
Matthews International Corp. — Class A		20		700
Men’s Wearhouse, Inc.		28		699
Ulta Salon Cosmetics & Fragrance, Inc.*		20		680
Pool Corp.		30		676
Capella Education Co.*		10		666
Bob Evans Farms, Inc.		20		659
Texas Roadhouse, Inc. — Class A*		38		652
American Greetings Corp. — Class A		29		643
Regis Corp.		38		631
Columbia Sportswear Co.		10		603

74   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
National CineMedia, Inc.		30	$	597
Scholastic Corp.		20		591
Cabela’s, Inc.*		27		587
Pinnacle Entertainment, Inc.*		40		561
Cato Corp. — Class A		20		548
Core-Mark Holding Company, Inc.*		15		534
American Axle & Manufacturing Holdings, Inc.*		41		527
Penske Automotive Group, Inc.*		30		523
Ruby Tuesday, Inc.*		40		522
K12, Inc.*		18		516
Finish Line, Inc. — Class A		30		516
Ryland Group, Inc.		30		511
DineEquity, Inc.*		10		494
99 Cents Only Stores*		30		478
Stage Stores, Inc.		27		468
Fred’s, Inc. — Class A		34		468
Shuffle Master, Inc.*		40		458
PEP Boys-Manny Moe & Jack		34		457
Interval Leisure Group, Inc.*		28		452
Meritage Homes Corp.*		20		444
Talbots, Inc.*		52		443
Exide Technologies*		46		433
Quiksilver, Inc.*		85		431
Superior Industries International, Inc.		20		424
Peet’s Coffee & Tea, Inc.*		10		417
Monro Muffler Brake, Inc.		12		415
Barnes & Noble, Inc.		29		410
Liz Claiborne, Inc.*		57		408
Sonic Corp.*		40		405
Belo Corp. — Class A*		57		404
Modine Manufacturing Co.*		26		403
True Religion Apparel, Inc.*		18		401
Blue Nile, Inc.*		7		399
Sonic Automotive, Inc. — Class A		30		397
Buffalo Wild Wings, Inc.*		9		395
Boyd Gaming Corp.*		37		392
Brown Shoe Company, Inc.		28		390
Ascent Media Corp. — Class A*		10		388
Harte-Hanks, Inc.		30		383
NutriSystem, Inc.		18		379
American Public Education, Inc.*		10		372
Grand Canyon Education, Inc.*		19		372
Asbury Automotive Group, Inc.*		20		370
Scientific Games Corp. — Class A*		37		369
Select Comfort Corp.*		40		365
Jakks Pacific, Inc.*		20		364
Ethan Allen Interiors, Inc.		18		360
BJ’s Restaurants, Inc.*		10		354
DSW, Inc. — Class A*		9		352
G-III Apparel Group Ltd.*		10		352
CEC Entertainment, Inc.*		9		349
Skechers U.S.A., Inc. — Class A*		17		340
Vitamin Shoppe, Inc.*		10		336
Retail Ventures, Inc.*		20		326
Callaway Golf Co.		40		323
Stewart Enterprises, Inc. — Class A		48		321
Domino’s Pizza, Inc.*		20		319
Standard Pacific Corp.*		68		313
Knology, Inc.*		20		313
Corinthian Colleges, Inc.*		59		307
Churchill Downs, Inc.		7		304
PetMed Express, Inc.		17		303
Rentrak Corp.*		10		302
Ameristar Casinos, Inc.		19		297
Fuel Systems Solutions, Inc.*		10		294
Rue21, Inc.*		10		293
Beazer Homes USA, Inc.*		54		291
World Wrestling Entertainment, Inc. — Class A		20		285
Charming Shoppes, Inc.*		78		277
Perry Ellis International, Inc.*		10		275
Winnebago Industries, Inc.*		18		274
America’s Car-Mart, Inc.*		10		271
La-Z-Boy, Inc. — Class Z*		30		271
Shoe Carnival, Inc.*		10		270
Dex One Corp.*		35		261
Krispy Kreme Doughnuts, Inc.*		37		258
Oxford Industries, Inc.		10		256
Mediacom Communications Corp. — Class A*		30		254
Dorman Products, Inc.*		7		254
Wet Seal, Inc. — Class A*		68		252
AFC Enterprises, Inc.*		18		250
Lions Gate Entertainment Corp.*		38		247
Overstock.com, Inc.*		15		247
Citi Trends, Inc.*		10		246
Sinclair Broadcast Group, Inc. — Class A		30		245
Global Sources Ltd.*		25		238
Lincoln Educational Services Corp.		15		233
Entercom Communications Corp. — Class A*		20		232
Drew Industries, Inc.		10		227
Universal Electronics, Inc.*		8		227
Universal Technical Institute, Inc.		10		220
Unifi, Inc.*		13		220
RC2 Corp.*		10		218
Zumiez, Inc.*		8		215
Red Robin Gourmet Burgers, Inc.*		10		215
Maidenform Brands, Inc.*		9		214
K-Swiss, Inc. — Class A*		17		212
hhgregg, Inc.*		10		210
Denny’s Corp.*		57		204
EW Scripps Co. — Class A*		20		203
iRobot Corp.*		8		199
Pacific Sunwear of California, Inc.*		36		195
Papa John’s International, Inc.*		7		194
Bridgepoint Education, Inc.*		10		190
Cherokee, Inc.		10		188

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  75

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Express, Inc.		10	$	188
McClatchy Co. — Class A*		40		187
Stein Mart, Inc.		20		185
HOT Topic, Inc.		28		176
California Pizza Kitchen, Inc.*		10		173
Volcom, Inc.		9		170
Winmark Corp.		5		168
Warner Music Group Corp.*		28		158
CKX, Inc.*		39		157
Libbey, Inc.*		10		155
Speedway Motorsports, Inc.		10		153
Big 5 Sporting Goods Corp.		10		153
Journal Communications, Inc. — Class A*		30		151
Smith & Wesson Holding Corp.*		40		150
Mac-Gray Corp.		10		150
Lumber Liquidators Holdings, Inc.*		6		149
Bebe Stores, Inc.		25		149
Arctic Cat, Inc.*		10		146
Spartan Motors, Inc.		24		146
Furniture Brands International, Inc.*		28		144
Lithia Motors, Inc. — Class A		10		143
Casual Male Retail Group, Inc.*		30		142
Lifetime Brands, Inc.*		10		140
Kirkland’s, Inc.*		10		140
Coldwater Creek, Inc.*		44		139
Sturm Ruger & Company, Inc.		9		138
Standard Motor Products, Inc.		10		137
Leapfrog Enterprises, Inc. — Class A*		24		133
Skyline Corp.		5		130
Drugstore.com, Inc.*		58		128
Bon-Ton Stores, Inc.		10		127
Monarch Casino & Resort, Inc.*		10		125
M/I Homes, Inc.*		8		123
Christopher & Banks Corp.		20		123
Hovnanian Enterprises, Inc. — Class A*		30		123
Marcus Corp.		9		119
Ambassadors Group, Inc.		10		115
Hooker Furniture Corp.		8		113
Movado Group, Inc.*		7		113
Multimedia Games, Inc.*		20		112
Carrols Restaurant Group, Inc.*		15		111
RG Barry Corp.		10		111
Amerigon, Inc.*		10		109
Ruth’s Hospitality Group, Inc.*		23		106
Tuesday Morning Corp.*		20		106
Midas, Inc.*		13		105
Culp, Inc.*		10		104
Systemax, Inc.*		7		99
Archipelago Learning, Inc.*		10		98
LIN TV Corp. — Class A*		18		95
Stoneridge, Inc.*		6		95
MarineMax, Inc.*		10		94
McCormick & Schmick’s Seafood Restaurants, Inc.*		10		91
Haverty Furniture Companies, Inc.		7		91
Morgans Hotel Group Co.*		10		91
Martha Stewart Living Omnimedia — Class A*		20		88
Sealy Corp.*		30		88
SuperMedia, Inc.*		10		87
AH Belo Corp. — Class A*		10		87
Audiovox Corp. — Class A*		10		86
Kid Brands, Inc.*		10		86
LodgeNet Interactive Corp.*		20		85
West Marine, Inc.*		8		85
Brookfield Homes Corp.*		9		85
US Auto Parts Network, Inc.*		10		84
Jamba, Inc.*		37		84
Red Lion Hotels Corp.*		10		80
New York & Company, Inc.*		18		80
Ballantyne Strong, Inc.*		10		78
Carmike Cinemas, Inc.*		10		77
Gaiam, Inc. — Class A		10		77
National American University Holdings, Inc.		10		73
O’Charleys, Inc.*		10		72
Entravision Communications Corp. — Class A*		28		72
Outdoor Channel Holdings, Inc.		10		72
Lee Enterprises, Inc.*		28		69
Marine Products Corp.*		10		67
Isle of Capri Casinos, Inc.*		6		61
Summer Infant, Inc.*		8		61
Nexstar Broadcasting Group, Inc. — Class A*		10		60
Media General, Inc. — Class A*		10		58
Build-A-Bear Workshop, Inc. — Class A*		7		53
Crown Media Holdings, Inc. — Class A*		20		52
Gray Television, Inc.*		28		52
Playboy Enterprises, Inc. — Class B*		10		52
Orbitz Worldwide, Inc.*		9		50
1-800-Flowers.com, Inc. — Class A*		17		46
Cumulus Media, Inc. — Class A*		10		43
Joe’s Jeans, Inc.*		27		42
PRIMEDIA, Inc.		10		42
Conn’s, Inc.*		8		37
Cambium Learning Group, Inc.*		10		34
American Apparel, Inc.*		20		33
Bluegreen Corp.*		10		32
Borders Group, Inc.*		30		27
Radio One, Inc. — Class D*		20		22
Princeton Review, Inc.*		18		21
Empire Resorts, Inc.*		20		21
Vitacost.com, Inc.*†††,1		10		5
Total Consumer Discretionary				104,372

76   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
HEALTH CARE — 1.8%
Salix Pharmaceuticals Ltd.*		40	$	1,878
Onyx Pharmaceuticals, Inc.*		38		1,401
STERIS Corp.		38		1,385
AMERIGROUP Corp.*		28		1,230
Healthsouth Corp.*		59		1,222
HMS Holdings Corp.*		18		1,166
Haemonetics Corp.*		18		1,137
Owens & Minor, Inc.		38		1,118
Healthspring, Inc.*		41		1,088
Dionex Corp.*		9		1,062
Pharmasset, Inc.*		24		1,042
Medicis Pharmaceutical Corp. — Class A		38		1,018
Immucor, Inc.*		50		992
Theravance, Inc.*		38		953
InterMune, Inc.*		26		946
Magellan Health Services, Inc.*		20		946
Incyte Corporation Ltd.*		57		944
American Medical Systems Holdings, Inc.*		50		943
Parexel International Corp.*		44		934
Catalyst Health Solutions, Inc.*		20		930
WellCare Health Plans, Inc.*		30		907
PSS World Medical, Inc.*		40		904
HeartWare International, Inc.*		10		876
Masimo Corp.		30		872
Viropharma, Inc.*		50		866
Cepheid, Inc.*		38		865
Acorda Therapeutics, Inc.*		30		818
Sirona Dental Systems, Inc.*		19		794
Volcano Corp.*		29		792
Cubist Pharmaceuticals, Inc.*		37		792
Par Pharmaceutical Companies, Inc.*		20		770
Impax Laboratories, Inc.*		38		764
Bruker Corp.*		46		764
Centene Corp.*		30		760
Nektar Therapeutics*		59		758
Invacare Corp.		25		754
NuVasive, Inc.*		29		744
Align Technology, Inc.*		38		743
athenahealth, Inc.*		18		738
Alkermes, Inc.*		59		725
Seattle Genetics, Inc.*		48		718
West Pharmaceutical Services, Inc.		17		700
Quality Systems, Inc.		10		698
Meridian Bioscience, Inc.		30		695
Auxilium Pharmaceuticals, Inc.*		30		633
MWI Veterinary Supply, Inc.*		10		631
Martek Biosciences Corp.*		20		626
Arthrocare Corp.*		20		621
Cyberonics, Inc.*		20		620
MedAssets, Inc.*		30		606
Amedisys, Inc.*		18		603
Questcor Pharmaceuticals, Inc.*		40		589
Exelixis, Inc.*		70		575
Chemed Corp.		9		572
Isis Pharmaceuticals, Inc.*		56		567
PDL BioPharma, Inc.		88		548
Momenta Pharmaceuticals, Inc.*		35		524
DexCom, Inc.*		38		519
Kindred Healthcare, Inc.*		28		514
Insulet Corp.*		33		512
Targacept, Inc.*		19		503
Analogic Corp.		10		495
Greatbatch, Inc.*		20		483
Gentiva Health Services, Inc.*		18		479
CONMED Corp.*		18		476
Integra LifeSciences Holdings Corp.*		10		473
Wright Medical Group, Inc.*		30		466
Air Methods Corp.*		8		450
Vivus, Inc.*		48		450
Savient Pharmaceuticals, Inc.*		40		446
NxStage Medical, Inc.*		17		423
Bio-Reference Labs, Inc.*		19		421
Halozyme Therapeutics, Inc.*		53		420
Amsurg Corp. — Class A*		20		419
Neogen Corp.*		10		410
Universal American Corp.		20		409
Medicines Co.*		28		396
Sequenom, Inc.*		49		393
IPC The Hospitalist Company, Inc.*		10		390
Micromet, Inc.*		48		390
Almost Family, Inc.*		10		384
Hanger Orthopedic Group, Inc.*		18		381
RehabCare Group, Inc.*		16		379
Enzon Pharmaceuticals, Inc.*		30		365
ICU Medical, Inc.*		10		365
Landauer, Inc.		6		360
MannKind Corp.*		44		355
Luminex Corp.*		19		347
Ariad Pharmaceuticals, Inc.*		68		347
Zoll Medical Corp.*		9		335
Immunogen, Inc.*		36		333
Computer Programs & Systems, Inc.		7		328
Assisted Living Concepts, Inc. — Class A*		10		325
Inspire Pharmaceuticals, Inc.*		38		319
Medivation, Inc.*		21		319
NPS Pharmaceuticals, Inc.*		40		316
Celera Corp.*		48		302
LHC Group, Inc.*		10		300
Accelrys, Inc.*		36		299
Geron Corp.*		57		295
Sun Healthcare Group, Inc.*		23		291
Omnicell, Inc.*		20		289
Merit Medical Systems, Inc.*		18		285
Delcath Systems, Inc.*		29		284

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  77

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
SIGA Technologies, Inc.*		20	$	280
Molina Healthcare, Inc.*		10		279
National Healthcare Corp.		6		278
Angiodynamics, Inc.*		18		277
Conceptus, Inc.*		20		276
MAKO Surgical Corp.*		18		274
Abaxis, Inc.*		10		269
Chelsea Therapeutics International Ltd.*		35		262
Orthofix International N.V.*		9		261
Ardea Biosciences, Inc.*		10		260
Metabolix, Inc.*		21		256
Natus Medical, Inc.*		18		255
SonoSite, Inc.*		8		253
Affymetrix, Inc.*		50		252
Hi-Tech Pharmacal Company, Inc.*		10		249
Medidata Solutions, Inc.*		10		239
Accuray, Inc.*		35		236
eResearchTechnology, Inc.*		32		235
Sunrise Senior Living, Inc.*		43		234
Cantel Medical Corp.		10		234
America Service Group, Inc.		15		227
Optimer Pharmaceuticals, Inc.*		20		226
Rigel Pharmaceuticals, Inc.*		30		226
Allos Therapeutics, Inc.*		49		226
Akorn, Inc.*		37		225
Select Medical Holdings Corp.*		30		219
AVANIR Pharmaceuticals, Inc. — Class A*		53		216
Endologix, Inc.*		30		215
Neurocrine Biosciences, Inc.*		28		214
Genomic Health, Inc.*		10		214
Opko Health, Inc.*		58		213
AMN Healthcare Services, Inc.*		34		209
Syneron Medical Ltd.*		20		204
Durect Corp.*		58		200
Sangamo Biosciences, Inc.*		30		199
US Physical Therapy, Inc.*		10		198
BMP Sunstone Corp.*		20		198
Alnylam Pharmaceuticals, Inc.*		20		197
Emeritus Corp.*		10		197
Jazz Pharmaceuticals, Inc.*		10		197
Transcend Services, Inc.*		10		196
PharMerica Corp.*		17		195
Cypress Bioscience, Inc.*		30		194
Spectrum Pharmaceuticals, Inc.*		28		192
ABIOMED, Inc.*		20		192
Genoptix, Inc.*		10		190
Healthways, Inc.*		17		190
Vanda Pharmaceuticals, Inc.*		20		189
Exactech, Inc.*		10		188
Lexicon Pharmaceuticals, Inc.*		126		181
AMAG Pharmaceuticals, Inc.*		10		181
Depomed, Inc.*		28		178
Caliper Life Sciences, Inc.*		28		178
Cytori Therapeutics, Inc.*		34		176
Pharmacyclics, Inc.*		29		176
Arqule, Inc.*		30		176
Ensign Group, Inc.		7		174
OraSure Technologies, Inc.*		30		173
XenoPort, Inc.*		20		170
Cross Country Healthcare, Inc.*		20		169
Capital Senior Living Corp.*		25		168
MAP Pharmaceuticals, Inc.*		10		167
Symmetry Medical, Inc.*		18		166
Chindex International, Inc.*		10		165
Emergent Biosolutions, Inc.*		7		164
Accretive Health, Inc.*		10		163
Nabi Biopharmaceuticals*		28		162
Orexigen Therapeutics, Inc.*		20		162
Providence Service Corp.*		10		161
Clinical Data, Inc.*		10		159
Novavax, Inc.*		65		158
BioScrip, Inc.*		30		157
Dynavax Technologies Corp.*		48		154
Unilife Corp.*		28		148
AVI BioPharma, Inc.*		70		148
AVEO Pharmaceuticals, Inc.*		10		146
Rural/Metro Corp.*		10		146
Quidel Corp.*		10		145
Furiex Pharmaceuticals, Inc.*		10		145
Five Star Quality Care, Inc.*		20		141
ZIOPHARM Oncology, Inc.*		30		140
Immunomedics, Inc.*		39		140
Keryx Biopharmaceuticals, Inc.*		30		137
Cadence Pharmaceuticals, Inc.*		18		136
American Dental Partners, Inc.*		10		135
Dyax Corp.*		63		135
Metropolitan Health Networks, Inc.*		30		134
Triple-S Management Corp. — Class B*		7		134
Pozen, Inc.*		20		133
Cynosure, Inc. — Class A*		13		133
Palomar Medical Technologies, Inc.*		9		128
Arena Pharmaceuticals, Inc.*		74		127
BioMimetic Therapeutics, Inc.*		10		127
CryoLife, Inc.*		23		125
Team Health Holdings, Inc.*		8		124
Staar Surgical Co.*		20		122
Pain Therapeutics, Inc.		18		122
Eurand N.V.*		10		118
Vascular Solutions, Inc.*		10		117
Solta Medical, Inc.*		38		116
Merge Healthcare, Inc.*		31		116
Synovis Life Technologies, Inc.*		7		113
Albany Molecular Research, Inc.*		20		112
Rochester Medical Corp.*		10		109
Exact Sciences Corp.*		18		108

78  |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
PDI, Inc.*		10	$	105
SuperGen, Inc.*		40		105
Progenics Pharmaceuticals, Inc.*		19		104
Ironwood Pharmaceuticals, Inc. — Class A*		10		103
Cambrex Corp.*		20		103
BioCryst Pharmaceuticals, Inc.*		20		103
Spectranetics Corp.*		20		103
IRIS International, Inc.*		10		102
Vical, Inc.*		50		101
Curis, Inc.*		50		99
Ligand Pharmaceuticals, Inc. — Class B*		11		98
Vital Images, Inc.*		7		98
TomoTherapy, Inc.*		27		97
RTI Biologics, Inc.*		36		96
Medical Action Industries, Inc.*		10		96
Continucare Corp.*		20		94
CardioNet, Inc.*		20		94
Obagi Medical Products, Inc.*		8		92
Santarus, Inc.*		28		92
Idenix Pharmaceuticals, Inc.*		18		91
Maxygen, Inc.		23		90
Sciclone Pharmaceuticals, Inc.*		21		88
Peregrine Pharmaceuticals, Inc.*		38		87
Kendle International, Inc.*		8		87
Alliance HealthCare Services, Inc.*		20		85
Enzo Biochem, Inc.*		16		84
StemCells, Inc.*		78		84
Medcath Corp.*		6		84
SurModics, Inc.*		7		83
Omeros Corp.*		10		82
Antares Pharma, Inc.*		48		82
Skilled Healthcare Group, Inc. — Class A*		9		81
Array Biopharma, Inc.*		27		81
Orthovita, Inc.*		40		80
Biosante Pharmaceuticals, Inc.*		48		79
Alphatec Holdings, Inc.*		29		78
Corcept Therapeutics, Inc.*		20		77
Allied Healthcare International, Inc.*		30		75
Celldex Therapeutics, Inc.*		18		74
Inhibitex, Inc.*		27		70
Stereotaxis, Inc.*		18		69
Cerus Corp.*		28		69
CytRx Corp.*		67		68
MELA Sciences, Inc.*		20		67
Cutera, Inc.*		8		66
Nymox Pharmaceutical Corp.*		9		63
Somaxon Pharmaceuticals, Inc.*		20		63
Cytokinetics, Inc.*		30		63
Osiris Therapeutics, Inc.*		8		62
Neuralstem, Inc.*		29		61
Synta Pharmaceuticals Corp.*		10		61
MedQuist, Inc.		7		61
Zalicus, Inc.*		38		60
Cumberland Pharmaceuticals, Inc.*		10		60
Cornerstone Therapeutics, Inc.*		10		58
LCA-Vision, Inc.*		10		58
NeurogesX, Inc.*		9		57
Lannett Company, Inc.*		10		56
Aoxing Pharmaceutical Company, Inc.*		20		56
Inovio Pharmaceuticals, Inc.*		47		54
Affymax, Inc.*		8		53
Hansen Medical, Inc.*		35		51
DynaVox, Inc. — Class A*		10		51
Biotime, Inc.*		6		50
Sucampo Pharmaceuticals, Inc. — Class A*		13		50
Infinity Pharmaceuticals, Inc.*		8		47
PURE Bioscience*		20		44
Acura Pharmaceuticals, Inc.*		13		43
Codexis, Inc.*		4		42
Caraco Pharmaceutical Laboratories Ltd.*		9		41
Alexza Pharmaceuticals, Inc.*		28		35
Nanosphere, Inc.*		7		31
Neostem, Inc.*		17		24
St. Jude Medical, Inc.*		0		17
Biodel, Inc.*		7		13
AspenBio Pharma, Inc.*		20		12
Total Health Care				91,853
ENERGY — 0.9%
Brigham Exploration Co.*		80		2,179
Dril-Quip, Inc.*		21		1,632
Complete Production Services, Inc.*		55		1,625
World Fuel Services Corp.		40		1,446
Berry Petroleum Co. — Class A		30		1,311
Lufkin Industries, Inc.		20		1,248
Bill Barrett Corp.*		29		1,193
Rosetta Resources, Inc.*		28		1,054
CARBO Ceramics, Inc.		10		1,035
Patriot Coal Corp.*		53		1,027
Key Energy Services, Inc.*		77		999
Bristow Group, Inc.*		18		852
McMoRan Exploration Co.*		49		840
Helix Energy Solutions Group, Inc.*		67		813
Swift Energy Co.*		20		783
Energy XXI Bermuda Ltd.*		27		747
Northern Oil and Gas, Inc.*		27		735
Overseas Shipholding Group, Inc.		20		708
ION Geophysical Corp.*		83		704
Nordic American Tanker Shipping		27		703
Kodiak Oil & Gas Corp.*		105		693
International Coal Group, Inc.*		88		681
Ship Finance International Ltd.		30		646
Carrizo Oil & Gas, Inc.*		17		586

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  79

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Stone Energy Corp.*		26	$	580
Contango Oil & Gas Co.*		10		579
Tetra Technologies, Inc.*		48		570
RPC, Inc.		30		544
Apco Oil and Gas International, Inc.		9		517
Gulfmark Offshore, Inc. — Class A*		17		517
James River Coal Co.*		20		507
Penn Virginia Corp.		30		505
Global Industries Ltd.*		68		471
Clean Energy Fuels Corp.*		34		471
Cloud Peak Energy, Inc.*		20		465
ATP Oil & Gas Corp.*		26		435
Gulfport Energy Corp.*		20		433
Petroleum Development Corp.*		10		422
Hornbeck Offshore Services, Inc.*		20		418
USEC, Inc.*		67		403
Knightsbridge Tankers Ltd.		18		401
T-3 Energy Services, Inc. — Class 3*		10		398
Pioneer Drilling Co.*		42		370
Newpark Resources, Inc.*		60		370
Gulf Island Fabrication, Inc.		13		366
Cal Dive International, Inc.*		64		363
W&T Offshore, Inc.		20		357
Parker Drilling Co.*		78		356
TransAtlantic Petroleum Ltd.*		105		350
Basic Energy Services, Inc.*		20		330
Dawson Geophysical Co.*		10		319
Tesco Corp.*		20		318
Goodrich Petroleum Corp.*		18		317
Crosstex Energy, Inc.		35		310
CVR Energy, Inc.*		20		304
Energy Partners Ltd.*		20		297
Western Refining, Inc.*		28		296
Willbros Group, Inc.*		30		295
Petroquest Energy, Inc.*		38		286
Resolute Energy Corp.*		19		280
Venoco, Inc.*		15		277
BPZ Resources, Inc.*		58		276
Rex Energy Corp.*		20		273
Uranium Energy Corp.*		41		248
Teekay Tankers Ltd. — Class A		20		247
Matrix Service Co.*		20		244
Golar LNG Ltd.		16		240
Hercules Offshore, Inc.*		68		235
Harvest Natural Resources, Inc.*		19		231
Approach Resources, Inc.*		10		231
Warren Resources, Inc.*		50		226
Georesources, Inc.*		10		222
Vaalco Energy, Inc.*		30		215
Cheniere Energy, Inc.*		38		210
Magnum Hunter Resources Corp.*		28		202
Vantage Drilling Co.*		99		201
PHI, Inc.*		10		188
FX Energy, Inc.*		30		184
Abraxas Petroleum Corp.*		40		183
Houston American Energy Corp.		10		181
Endeavour International Corp.*		13		175
Rentech, Inc.*		136		166
General Maritime Corp.		47		153
Allis-Chalmers Energy, Inc.*		20		142
Natural Gas Services Group, Inc.*		7		132
DHT Holdings, Inc.		27		126
Gastar Exploration Ltd.*		28		120
Callon Petroleum Co.*		20		118
Green Plains Renewable Energy, Inc.*		10		113
L&L Energy, Inc.*		10		108
Scorpio Tankers, Inc.*		10		101
Syntroleum Corp.*		52		96
GMX Resources, Inc.*		17		94
Delta Petroleum Corp.*		122		93
Seahawk Drilling, Inc.*		10		89
Union Drilling, Inc.*		12		87
Delek US Holdings, Inc.		10		73
RAM Energy Resources, Inc.*		39		72
Evolution Petroleum Corp.*		10		65
Hess Corp.		1		65
CAMAC Energy, Inc.*		27		54
Miller Petroleum, Inc.*		10		52
Total Energy				45,568
MATERIALS — 0.8%
Hecla Mining Co.*		166		1,869
Solutia, Inc.*		77		1,777
WR Grace & Co.*		48		1,686
Rock-Tenn Co. — Class A		29		1,565
Coeur d’Alene Mines Corp.*		57		1,557
Allied Nevada Gold Corp.*		51		1,342
Silgan Holdings, Inc.		36		1,289
Thompson Creek Metals Company, Inc.*		86		1,266
Rockwood Holdings, Inc.*		27		1,056
Olin Corp.		49		1,006
Sensient Technologies Corp.		27		992
NewMarket Corp.		8		987
Ferro Corp.*		57		835
Golden Star Resources Ltd.*		173		794
AMCOL International Corp.		25		775
OM Group, Inc.*		20		770
Louisiana-Pacific Corp.*		80		757
Worthington Industries, Inc.		40		736
Buckeye Technologies, Inc.		35		735
Stillwater Mining Co.*		34		726
PolyOne Corp.*		58		724
Globe Specialty Metals, Inc.		40		684
Minerals Technologies, Inc.		10		654
Schweitzer-Mauduit International, Inc.		10		629
Clearwater Paper Corp.*		8		626
HB Fuller Co.		30		616
Balchem Corp.		18		609
Calgon Carbon Corp.*		40		605

80   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
Deltic Timber Corp.		10	$	563
Century Aluminum Co.*		36		559
RTI International Metals, Inc.*		20		540
Stepan Co.		7		534
Kaiser Aluminum Corp.		10		501
US Gold Corp.*		61		492
Georgia Gulf Corp.*		20		481
Innophos Holdings, Inc.		13		469
Koppers Holdings, Inc.		13		465
Hawkins, Inc.		10		444
Westlake Chemical Corp.		10		435
A. Schulman, Inc.		18		412
Texas Industries, Inc.		9		412
Boise, Inc.		51		404
STR Holdings, Inc.*		20		400
KapStone Paper and Packaging Corp.*		25		383
Arch Chemicals, Inc.		10		379
Horsehead Holding Corp.*		28		365
Jaguar Mining, Inc.*		47		335
Quaker Chemical Corp.		8		333
PH Glatfelter Co.		26		319
TPC Group, Inc.*		10		303
Neenah Paper, Inc.		15		295
Haynes International, Inc.		7		293
Graphic Packaging Holding Co.*		70		272
Omnova Solutions, Inc.*		30		251
Kraton Performance Polymers, Inc.*		8		248
General Moly, Inc.*		38		246
Brush Engineered Materials, Inc.*		6		232
Olympic Steel, Inc.		8		229
Wausau Paper Corp.		26		224
United States Lime & Minerals, Inc.*		5		211
Senomyx, Inc.*		29		207
Myers Industries, Inc.		20		195
LSB Industries, Inc.*		8		194
Capital Gold Corp.*		38		193
Spartech Corp.*		20		187
Zoltek Companies, Inc.*		16		185
AM Castle & Co.*		10		184
Headwaters, Inc.*		36		165
Metals USA Holdings Corp.*		10		152
Noranda Aluminum Holding Corp.*		10		146
Graham Packaging Company, Inc.*		10		130
US Energy Corp.*		20		122
Zep, Inc.		6		119
Landec Corp.*		16		96
American Vanguard Corp.		10		85
Verso Paper Corp.*		10		34
Total Materials				42,090
UTILITIES — 0.5%
Nicor, Inc.		29		1,448
Piedmont Natural Gas Company, Inc.		50		1,398
New Jersey Resources Corp.		30		1,293
WGL Holdings, Inc.		34		1,216
Cleco Corp.		38		1,169
Southwest Gas Corp.		30		1,100
Portland General Electric Co.		49		1,063
IDACORP, Inc.		28		1,035
Northwest Natural Gas Co.		20		929
Avista Corp.		40		901
UIL Holdings Corp.		30		899
South Jersey Industries, Inc.		17		898
Unisource Energy Corp.		25		896
MGE Energy, Inc.		20		855
Black Hills Corp.		27		810
PNM Resources, Inc.		58		755
El Paso Electric Co.*		27		743
Allete, Inc.		19		708
Empire District Electric Co.		27		599
NorthWestern Corp.		20		577
Otter Tail Corp.		25		564
Chesapeake Utilities Corp.		10		415
CH Energy Group, Inc.		8		391
Dynegy, Inc. — Class A*		67		377
California Water Service Group		9		335
Laclede Group, Inc.		9		329
Connecticut Water Service, Inc.		10		279
SJW Corp.		10		265
Unitil Corp.		10		227
Central Vermont Public Service Corp.		10		219
American States Water Co.		6		207
Middlesex Water Co.		10		184
York Water Co.		10		173
Consolidated Water Company Ltd.		14		128
Cadiz, Inc.*		10		124
American DG Energy, Inc.*		10		28
Total Utilities				23,537
CONSUMER STAPLES — 0.4%
Ruddick Corp.		29		1,068
United Natural Foods, Inc.*		29		1,064
TreeHouse Foods, Inc.*		20		1,022
Nu Skin Enterprises, Inc. — Class A		30		908
Boston Beer Company, Inc. — Class A*		9		856
Casey’s General Stores, Inc.		20		850
Universal Corp.		20		814
Hain Celestial Group, Inc.*		30		812
Fresh Del Monte Produce, Inc.		30		749
Darling International, Inc.*		48		637
Sanderson Farms, Inc.		15		587
Lancaster Colony Corp.		10		572
Diamond Foods, Inc.		10		532
Weis Markets, Inc.		13		524
Tootsie Roll Industries, Inc.		18		521
J&J Snack Foods Corp.		10		482
Vector Group Ltd.		26		450
Elizabeth Arden, Inc.*		19		437
Nash Finch Co.		10		425
Chiquita Brands International, Inc.*		29		407

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  81

SCHEDULE OF INVESTMENTS (continued) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

	Shares		Value
WD-40 Co.		10	$	403
Central Garden and Pet Co. — Class A*		40		395
B&G Foods, Inc. — Class A		28		384
Pricesmart, Inc.		10		380
Snyders-Lance, Inc.		16		375
Andersons, Inc.		10		363
Rite Aid Corp.*		408		360
Prestige Brands Holdings, Inc.*		30		358
Limoneira Co.		10		287
Winn-Dixie Stores, Inc.*		40		287
Heckmann Corp.*		57		287
Spectrum Brands Holdings, Inc.*		9		281
Alliance One International, Inc.*		59		250
Dole Food Company, Inc.*		18		243
Medifast, Inc.*		8		231
Seneca Foods Corp. — Class A*		8		216
Pilgrim’s Pride Corp.*		30		213
Calavo Growers, Inc.		9		207
Pantry, Inc.*		10		199
Cal-Maine Foods, Inc.		6		189
Inter Parfums, Inc.		10		189
National Beverage Corp.		13		171
Smart Balance, Inc.*		38		165
Griffin Land & Nurseries, Inc.		5		162
Ingles Markets, Inc. — Class A		8		154
Spartan Stores, Inc.		9		153
Nutraceutical International Corp.*		10		142
Imperial Sugar Co.		10		134
John B. Sanfilippo & Son, Inc.*		10		124
Star Scientific, Inc.*		62		121
MGP Ingredients, Inc.		10		110
Synutra International, Inc.*		8		108
Revlon, Inc. — Class A*		10		98
Schiff Nutrition International, Inc.		7		64
Harbinger Group, Inc.*		10		62
Female Health Co.		8		46
Total Consumer Staples				21,628
TELECOMMUNICATION SERVICES — 0.2%
Syniverse Holdings, Inc.*		50		1,542
AboveNet, Inc.		10		585
Hughes Communications, Inc.*		10		404
Shenandoah Telecommunications Co.		20		375
Cogent Communications Group, Inc.*		26		368
Cincinnati Bell, Inc.*		127		356
General Communication, Inc. — Class A*		28		354
Consolidated Communications Holdings, Inc.		18		347
Alaska Communications Systems Group, Inc.		28		311
NTELOS Holdings Corp.		16		305
PAETEC Holding Corp.*		78		292
Premiere Global Services, Inc.*		39		265
Cbeyond, Inc.*		17		260
Global Crossing Ltd.*		20		258
IDT Corp. — Class B		10		256
Neutral Tandem, Inc.*		17		245
Atlantic Tele-Network, Inc.		6		230
USA Mobility, Inc.		10		178
Iridium Communications, Inc.*		20		165
Vonage Holdings Corp.*		68		152
FiberTower Corp.*		30		134
ICO Global Communications Holdings Ltd.*		58		87
Globalstar, Inc.*		48		70
Total Telecommunication Services				7,539
Total Common Stocks (Cost $377,541)				749,109
CLOSED-END FUND† — 0.0%
Kayne Anderson Energy Development Co. (Cost $73)		11		198

	Face
	Amount
REPURCHASE AGREEMENTS††,2 — 87.3%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/113	$	2,085,380		2,085,380
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		803,999		803,999
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		769,541		769,541
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		769,541		769,541
Total Repurchase Agreements (Cost $4,428,461)				4,428,461
Total Investments — 102.1% (Cost $4,806,075)			$	5,177,768
Liabilities, Less Cash & Other Assets — (2.1)%				(104,097	)
Total Net Assets — 100.0%			$	5,073,671

			Unrealized
	Contracts		Gain
FUTURES CONTRACTS PURCHASED†
March 2011 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $1,407,420)		18	$	18,426

82   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

RUSSELL 2000^® 2x STRATEGY FUND

			Unrealized
	Units		Loss
EQUITY INDEX SWAP AGREEMENTS††
Morgan Stanley Capital Services, Inc. January 2011 Russell 2000 Index Swap, Terminating 01/26/114 (Notional Value $485,300)		619	$	(5,129	)
Credit Suisse Capital, LLC January 2011 Russell 2000 Index Swap, Terminating 01/28/114 (Notional Value $2,423,251)		3,092		(25,467	)
Goldman Sachs International January 2011 Russell 2000 Index Swap, Terminating 01/27/114 (Notional Value $5,085,992)		6,490		(47,604	)
(Total Notional Value $7,994,543)			$	(78,200	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs, except as noted — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
†††	Value determined based on Level 3 inputs — See Note 7.
1	Illiquid security.
2	Repurchase Agreements — See Note 6
3	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
4	Total Return based on Russell 2000 Index +/- financing at a variable rate.
plc — Public Limited Company
REIT — Real Estate Investment Trust

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |  83

RUSSELL 2000^® 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	749,307
Repurchase agreements, at value		4,428,461
Total investments		5,177,768
Segregated cash with broker		81,000
Receivables:
Securities sold		424
Dividends		831
Interest		13
Other		3,569
Total assets		5,263,605
Liabilities:
Unrealized depreciation on swap agreements		78,200
Payable for:
Swap settlement		5,605
Variation margin		9,900
Securities purchased		24
Fund shares redeemed		85,802
Management fees		4,165
Custodian fees		153
Transfer agent/maintenance fees		1,157
Investor service fees		1,157
Portfolio accounting fees		463
Other		3,308
Total liabilities		189,934
Net assets	$	5,073,671
Net assets consist of:
Paid in capital	$	5,403,130
Accumulated net investment loss		(201	)
Accumulated net realized loss on investments		(641,177	)
Net unrealized appreciation on investments		311,919
Net assets	$	5,073,671
Capital shares outstanding		34,185
Net asset value per share	$	148.42
Investments, at cost	$	377,614
Repurchase agreements, at cost		4,428,461
Total cost	$	4,806,075

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2)	$	20,827
Interest		3,071
Total investment income		23,898
Expenses:
Management fees		34,262
Transfer agent and administrative fees		9,517
Investor service fees		9,517
Portfolio accounting fees		3,807
Trustees’ fees*		433
Audit and outside service fees		4,002
Printing fees		3,562
Miscellaneous		1,044
Total expenses		66,144
Net investment loss		(42,246	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		323,666
Equity index swaps		1,166,671
Futures contracts		63,270
Net realized gain		1,553,607
Net change in unrealized appreciation (depreciation) on:
Investments		(37,046	)
Equity index swaps		(182,014	)
Futures contracts		(15,923	)
Net change in unrealized appreciation (depreciation)		(234,983	)
Net realized and unrealized gain		1,318,624
Net increase in net assets resulting from operations	$	1,276,378

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

84   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

RUSSELL 2000^® 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(42,246	)	$	(30,024	)
Net realized gain (loss) on investments		1,553,607			(559,709	)
Net change in unrealized appreciation (depreciation) on investments		(234,983	)		465,754
Net increase (decrease) in net assets resulting from operations		1,276,378			(123,979	)
Distributions to shareholders from:
Net investment income		—			(317	)
Total distributions to shareholders		—			(317	)
Capital share transactions:
Proceeds from sale of shares		48,589,346			85,843,610
Distributions reinvested		—			317
Cost of shares redeemed		(48,443,340	)		(85,489,820	)
Net increase from capital share transactions		146,006			354,107
Net increase in net assets		1,422,384			229,811
Net assets:
Beginning of year		3,651,287			3,421,476
End of year	$	5,073,671		$	3,651,287
Accumulated net investment loss at end of year	$	(201	)	$	(454	)
Capital share activity:
Shares sold		426,047			1,241,567	†
Shares issued from reinvestment of distributions		—			3	†
Shares redeemed		(428,349	)		(1,251,526	)†
Net decrease in shares		(2,302	)		(9,956	)†

^† Share amounts for the period January 1, 2009 through April 19, 2009 have been restated to reflect a 1:10 reverse share split effective April 20, 2009.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   85

RUSSELL 2000^® 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009a			2008a			2007a			2006a
Per Share Data
Net asset value, beginning of period	$	100.07		$	73.67		$	224.30		$	259.70		$	250.00
Income (loss) from investment operations:
Net investment income (loss)c		(1.25	)		(.67	)		.10			2.50			.50
Net gain (loss) on investments (realized and unrealized)		49.60			27.08			(148.93	)		(35.20	)		9.60
Total from investment operations		48.35			26.41			(148.83	)		(32.70	)		10.10
Less distributions from:
Net investment income		—			(.01	)		(1.80	)		(.10	)		(.40	)
Net realized gains		—			—			—			(2.60	)		—
Total distributions		—			(.01	)		(1.80	)		(2.70	)		(.40	)
Net asset value, end of period	$	148.42		$	100.07		$	73.67		$	224.30		$	259.70
Total Returnd		48.30	%		35.85	%		(66.18	%)		(12.59	%)		4.06	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,074		$	3,651		$	3,421		$	6,205		$	4,584
Ratios to average net assets:
Net investment income (loss)		(1.11	%)		(0.97	%)		0.06	%		0.95	%		1.02	%
Total expenses		1.74	%		1.75	%		1.68	%		1.64	%		1.64	%
Portfolio turnover rate		100	%		493	%		347	%		174	%		60	%

a	Per share amounts for the period October 27, 2006 — April 19, 2009 have been restated to reflect a 1:10 reverse stock split effective April 20, 2009.
b	Since commencement of operations: October 27, 2006
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

86   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

RUSSELL 2000^® 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate to the performance of a specific benchmark for small-cap securities on a daily basis. The Fund’s current benchmark is 150% of the Russell 2000 Index (the “underlying index”).

Inception: October 1, 2001

For the one-year period ended December 31, 2010, Russell 2000^® 1.5x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 150% of the daily price movement of the Russell 2000 Index. Russell 2000^® 1.5x Strategy Fund returned 37.85%, while the Russell 2000 Index returned 26.86% over the same time period.

The biggest performance contributors to the index during the period were Information Technology (6.46%), Industrials (4.61%) and Consumer Discretionary (4.44%). Telecommunication Services (0.14%), Utilities (0.59%) and Consumer Staples (0.65%) provided the least performance to the index during the year.

Riverbed Technology, Inc., VeriFone Systems, Inc. and TIBCO Software, Inc. were among the stocks which provided the most performance to the index during the year. Human Genome Sciences, Inc., Assured Guaranty Ltd. And E*TRADE Financial Corp. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 1, 2001 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(10/01/01)
RUSSELL 2000® 1.5x STRATEGY FUND		37.85	%		0.15	%		6.51	%
RUSSELL 2000 INDEX		26.86	%		4.49	%		9.05	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 2000 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Riverbed Technology, Inc.	0.04	%
Nordson Corp.	0.03	%
TIBCO Software, Inc.	0.03	%
VeriFone Systems, Inc.	0.03	%
Rackspace Hosting, Inc.	0.03	%
Brigham Exploration Co.	0.03	%
Baldor Electric Co.	0.03	%
Sotheby’s	0.03	%
Dril-Quip, Inc.	0.03	%
Hecla Mining Co.	0.03	%
Top Ten Total	0.31	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   87

SCHEDULE OF INVESTMENTS	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 11.2%
FINANCIALS - 2.3%
American Capital Ltd.*		562	$	4,249
BioMed Realty Trust, Inc.		217		4,047
CBL & Associates Properties, Inc.		230		4,025
Highwoods Properties, Inc.		124		3,949
Entertainment Properties Trust		84		3,885
MFA Financial, Inc.		458		3,737
Stifel Financial Corp.*		60		3,722
National Retail Properties, Inc.		136		3,604
FirstMerit Corp.		182		3,602
Tanger Factory Outlet Centers		70		3,583
Apollo Investment Corp.		321		3,553
SVB Financial Group*		66		3,501
Signature Bank *		70		3,500
Kilroy Realty Corp.		95		3,465
Home Properties, Inc.		62		3,440
Alterra Capital Holdings Ltd.		158		3,419
Omega Healthcare Investors, Inc.		152		3,411
American Campus Communities, Inc.		107		3,398
MGIC Investment Corp.*		331		3,373
Platinum Underwriters Holdings Ltd.		74		3,328
Prosperity Bancshares, Inc.		84		3,300
Washington Real Estate Investment Trust		105		3,254
LaSalle Hotel Properties		121		3,194
ProAssurance Corp.*		50		3,030
DiamondRock Hospitality Co.*		248		2,976
Post Properties, Inc.		81		2,940
Mid-America Apartment Communities, Inc.		46		2,921
Trustmark Corp.		109		2,708
Westamerica Bancorporation		47		2,607
NewAlliance Bancshares, Inc.		172		2,577
CNO Financial Group, Inc.*		377		2,556
Hatteras Financial Corp.		84		2,543
First American Financial Corp.		170		2,540
Montpelier Re Holdings Ltd.		120		2,393
Extra Space Storage, Inc.		137		2,384
Colonial Properties Trust		132		2,383
Equity Lifestyle Properties, Inc.		42		2,349
Umpqua Holdings Corp.		192		2,339
Whitney Holding Corp.		163		2,306
Iberiabank Corp.		39		2,306
Portfolio Recovery Associates, Inc.*		30		2,256
American Capital Agency Corp.		78		2,242
Webster Financial Corp.		113		2,226
Delphi Financial Group, Inc. — Class A		76		2,192
Potlatch Corp.		67		2,181
Knight Capital Group, Inc. — Class A*		157		2,165
Cathay General Bancorp		129		2,154
UMB Financial Corp.		52		2,154
Northwest Bancshares, Inc.		180		2,117
Healthcare Realty Trust, Inc.		99		2,096
PHH Corp.*		90		2,084
Ezcorp, Inc. — Class A*		76		2,062
Susquehanna Bancshares, Inc.		213		2,062
Medical Properties Trust, Inc.		184		1,993
Redwood Trust, Inc.		130		1,941
Astoria Financial Corp.		139		1,933
Argo Group International Holdings Ltd.		51		1,910
FNB Corp.		194		1,905
First Financial Bancorp		103		1,903
National Health Investors, Inc.		42		1,891
DCT Industrial Trust, Inc.		356		1,890
International Bancshares Corp.		94		1,883
Cash America International, Inc.		50		1,846
Sovran Self Storage, Inc.		50		1,841
Radian Group, Inc.		223		1,800
Glacier Bancorp, Inc.		119		1,798
Tower Group, Inc.		70		1,791
Starwood Property Trust, Inc.		82		1,761
Old National Bancorp		146		1,736
EastGroup Properties, Inc.		41		1,735
PS Business Parks, Inc.		31		1,727
Hancock Holding Co.		49		1,708
United Bankshares, Inc.		58		1,694
Wintrust Financial Corp.		51		1,685
Sunstone Hotel Investors, Inc.*		163		1,684
National Penn Bancshares, Inc.		207		1,662
KBW, Inc.		58		1,619
World Acceptance Corp.*		30		1,584
Selective Insurance Group, Inc.		86		1,561
MB Financial, Inc.		90		1,559
Franklin Street Properties Corp.		109		1,553
Invesco Mortgage Capital, Inc.		71		1,551
First Cash Financial Services, Inc.*		49		1,519
Provident Financial Services, Inc.		100		1,513
Capstead Mortgage Corp.		120		1,511
DuPont Fabros Technology, Inc.		70		1,489
First Financial Bankshares, Inc.		29		1,484
RLI Corp.		28		1,472
U-Store-It Trust		154		1,468
Park National Corp.		20		1,453
Prospect Capital Corp.		134		1,447
Government Properties Income Trust		54		1,447
Anworth Mortgage Asset Corp.		206		1,442
MF Global Holdings Ltd.*		172		1,438
Hersha Hospitality Trust — Class A		217		1,432
NBT Bancorp, Inc.		59		1,425
First Midwest Bancorp, Inc.		121		1,394
Greenlight Capital Re Ltd. — Class A*		50		1,341
BlackRock Kelso Capital Corp.		121		1,338
CVB Financial Corp.		154		1,335
Community Bank System, Inc.		47		1,305

88   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
American Equity Investment Life Holding Co.		103	$	1,293
Lexington Realty Trust		162		1,288
Columbia Banking System, Inc.		61		1,285
Acadia Realty Trust		70		1,277
Texas Capital Bancshares, Inc.*		60		1,276
Employers Holdings, Inc.		73		1,276
Cousins Properties, Inc.		153		1,276
Pico Holdings, Inc.*		40		1,272
Pennsylvania Real Estate Investment Trust		87		1,264
PrivateBancorp, Inc. — Class A		87		1,251
First Commonwealth Financial Corp.		175		1,239
Strategic Hotels & Resorts, Inc.*		234		1,238
Infinity Property & Casualty Corp.		20		1,236
iStar Financial, Inc.*		154		1,204
Dollar Financial Corp.*		42		1,202
LTC Properties, Inc.		42		1,179
Pebblebrook Hotel Trust		58		1,179
Glimcher Realty Trust		140		1,176
Sun Communities, Inc.		35		1,166
FelCor Lodging Trust, Inc.*		163		1,148
Equity One, Inc.		63		1,145
Safety Insurance Group, Inc.		24		1,142
Forestar Group, Inc.*		59		1,139
Horace Mann Educators Corp.		63		1,137
Ocwen Financial Corp.*		119		1,135
PacWest Bancorp		53		1,133
Associated Estates Realty Corp.		74		1,131
Investment Technology Group, Inc.*		69		1,130
Flagstone Reinsurance Holdings S.A.		89		1,121
Investors Real Estate Trust		125		1,121
Brookline Bancorp, Inc.		103		1,118
optionsXpress Holdings, Inc.		70		1,097
Fifth Street Finance Corp.		90		1,093
Bank of the Ozarks, Inc.		25		1,084
Inland Real Estate Corp.		123		1,082
Oritani Financial Corp.		88		1,077
First Potomac Realty Trust		64		1,076
Sterling Bancshares, Inc.		152		1,067
City Holding Co.		29		1,051
MarketAxess Holdings, Inc.		50		1,041
Investors Bancorp, Inc.*		79		1,036
Getty Realty Corp.		33		1,032
Piper Jaffray Companies, Inc.*		29		1,015
Navigators Group, Inc.*		20		1,007
National Financial Partners Corp.*		73		978
Oriental Financial Group, Inc.		78		974
Primerica, Inc.		40		970
Compass Diversified Holdings		54		955
Home Bancshares, Inc.		43		947
Meadowbrook Insurance Group, Inc.		92		943
S&T Bancorp, Inc.		41		926
Nelnet, Inc. — Class A		39		924
Banco Latinoamericano de Comercio Exterior S.A. — Class E		50		923
First Industrial Realty Trust, Inc.*		105		920
Cohen & Steers, Inc.		35		914
MCG Capital Corp.		131		913
United Fire & Casualty Co.		40		893
Evercore Partners, Inc. — Class A		26		884
Internet Capital Group, Inc.*		61		867
Simmons First National Corp. — Class A		30		855
Chemical Financial Corp.		38		842
Universal Health Realty Income Trust		23		840
Trustco Bank Corp.		131		831
Sabra Healthcare REIT, Inc.		45		828
Cypress Sharpridge Investments, Inc.		64		826
Western Alliance Bancorp*		112		824
Independent Bank Corp.		30		811
Boston Private Financial Holdings, Inc.		123		806
Urstadt Biddle Properties, Inc. — Class A		41		797
Ramco-Gershenson Properties Trust		64		797
PMI Group, Inc.*		241		795
PennantPark Investment Corp.		64		783
WesBanco, Inc.		40		758
Sandy Spring Bancorp, Inc.		41		756
Parkway Properties, Inc.		43		753
Lakeland Financial Corp.		35		751
Artio Global Investors, Inc. — Class A		50		738
Southside Bancshares, Inc.		35		737
Harleysville Group, Inc.		20		735
Hilltop Holdings, Inc.*		74		734
BGC Partners, Inc. — Class A		87		723
Retail Opportunity Investments Corp.		72		714
WSFS Financial Corp.		15		712
CNA Surety Corp.*		30		710
Saul Centers, Inc.		15		710
Duff & Phelps Corp. — Class A		42		708
First Financial Corp.		20		703
Amtrust Financial Services, Inc.		40		700
Walter Investment Management Corp.		39		700
Education Realty Trust, Inc.		90		699
Newcastle Investment Corp.*		103		690
FPIC Insurance Group, Inc.*		18		665
Renasant Corp.		39		659
FBL Financial Group, Inc. — Class A		23		659
Flushing Financial Corp.		47		658
Ashford Hospitality Trust, Inc.*		68		656
SCBT Financial Corp.		20		655
Pinnacle Financial Partners, Inc.*		48		652

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   89

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
TowneBank		40	$	636
Maiden Holdings Ltd.		80		629
Credit Acceptance Corp.*		10		628
Bancfirst Corp.		15		618
1st Source Corp.		30		607
Cardinal Financial Corp.		52		605
Hercules Technology Growth Capital, Inc.		58		601
Penns Woods Bancorp, Inc.		15		597
StellarOne Corp.		41		596
Nara Bancorp, Inc.*		60		589
Provident New York Bancorp		56		587
Cedar Shopping Centers, Inc.		93		585
Univest Corporation of Pennsylvania		30		575
eHealth, Inc.*		40		568
International Assets Holding Corp.*		24		566
Encore Capital Group, Inc.*		24		563
NorthStar Realty Finance Corp.		117		556
Tompkins Financial Corp.		14		548
PennyMac Mortgage Investment Trust		30		544
Suffolk Bancorp		22		543
MVC Capital, Inc.		37		540
Resource Capital Corp.		73		539
Beneficial Mutual Bancorp, Inc.*		61		539
Danvers Bancorp, Inc.		30		530
NewStar Financial, Inc.*		50		528
GFI Group, Inc.		112		525
Dime Community Bancshares, Inc.		36		525
AMERISAFE, Inc.*		30		525
Advance America Cash Advance Centers, Inc.		93		525
CapLease, Inc.		90		524
Apollo Commercial Real Estate Finance, Inc.		32		523
Arrow Financial Corp.		19		523
Hudson Valley Holding Corp.		21		520
Capital Southwest Corp.		5		519
Enstar Group Ltd.*		6		507
Oppenheimer Holdings, Inc. — Class A		19		498
Kansas City Life Insurance Co.		15		495
Winthrop Realty Trust		38		486
TICC Capital Corp.		43		482
Kite Realty Group Trust		89		481
Westfield Financial, Inc.		52		481
Phoenix Companies, Inc.*		189		480
Triangle Capital Corp.		25		475
Union First Market Bankshares Corp.		32		473
Great Southern Bancorp, Inc.		20		472
Chesapeake Lodging Trust		25		470
Center Financial Corp.*		62		470
Community Trust Bancorp, Inc.		16		463
Washington Banking Co.		33		452
Global Indemnity plc — Class A*		22		450
First Community Bancshares, Inc.		30		448
TradeStation Group, Inc.*		66		446
Safeguard Scientifics, Inc.*		26		444
Tejon Ranch Co.*		16		441
Citizens, Inc.*		59		440
Consolidated-Tomoka Land Co.		15		434
First Busey Corp.		91		428
Republic Bancorp, Inc. — Class A		18		428
West Coast Bancorp*		150		423
Alliance Financial Corp.		13		421
Colony Financial, Inc.		21		420
Calamos Asset Management, Inc. — Class A		30		420
Sterling Bancorp — Class N		40		419
Financial Institutions, Inc.		22		417
Two Harbors Investment Corp.		42		411
German American Bancorp, Inc.		22		405
Citizens Republic Bancorp, Inc.*		651		400
Cogdell Spencer, Inc.		69		400
Main Street Capital Corp.		22		400
Camden National Corp.		11		399
Territorial Bancorp, Inc.		20		398
United Financial Bancorp, Inc.		26		397
Southwest Bancorp, Inc.		32		397
Bancorp, Inc.*		39		397
Financial Engines, Inc.*		20		397
NGP Capital Resources Co.		43		396
Agree Realty Corp.		15		393
SY Bancorp, Inc.		16		393
Northfield Bancorp, Inc.		29		386
Ameris Bancorp		36		379
SeaBright Holdings, Inc.		41		378
National Bankshares, Inc.		12		378
First of Long Island Corp.		13		376
Berkshire Hills Bancorp, Inc.		17		376
Eagle Bancorp, Inc.*		26		375
Epoch Holding Corp.		24		373
Bridge Bancorp, Inc.		15		370
Home Federal Bancorp, Inc.		30		368
Monmouth Real Estate Investment Corp. — Class A		43		366
Virtus Investment Partners, Inc.*		8		363
RAIT Financial Trust*		164		359
Trico Bancshares		22		355
Washington Trust Bancorp, Inc.		16		350
Bank of Marin Bancorp		10		350
Dynex Capital, Inc.		32		349
FBR Capital Markets Corp.*		91		348
Abington Bancorp, Inc.		29		346
First Financial Holdings, Inc.		30		345
American Safety Insurance Holdings Ltd.*		16		342
Gladstone Capital Corp.		29		334
Bryn Mawr Bank Corp.		19		332

90   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
State Auto Financial Corp.		19	$	331
Farmer Mac — Class C		20		326
Bank Mutual Corp.		67		320
Westwood Holdings Group, Inc.		8		320
First Merchants Corp.		36		319
Donegal Group, Inc. — Class A		22		319
CoBiz Financial, Inc.		52		316
United Community Banks, Inc.*		162		316
CreXus Investment Corp.		24		314
Peoples Bancorp, Inc.		20		313
Arlington Asset Investment Corp. — Class A		13		312
First Mercury Financial Corp.		19		312
Lakeland Bancorp, Inc.		28		307
First Bancorp		20		306
Gladstone Investment Corp.		40		306
Gleacher & Company, Inc.*		129		306
BankFinancial Corp.		31		302
Stewart Information Services Corp.		26		300
Citizens & Northern Corp.		20		297
OceanFirst Financial Corp.		23		296
MainSource Financial Group, Inc.		28		291
Excel Trust, Inc.		24		290
HFF, Inc. — Class A*		30		290
Cowen Group, Inc. — Class A*		62		289
GAMCO Investors, Inc. — Class A		6		288
Centerstate Banks, Inc.		36		285
Pacific Continental Corp.		28		282
CNB Financial Corp.		19		281
Kennedy-Wilson Holdings, Inc.*		28		280
Heartland Financial USA, Inc.		16		279
1st United Bancorp, Inc.*		40		276
Orrstown Financial Services, Inc.		10		274
Virginia Commerce Bancorp, Inc.*		44		272
Terreno Realty Corp.*		15		269
Presidential Life Corp.		27		268
Heritage Financial Corp.*		19		264
ESSA Bancorp, Inc.		20		264
Metro Bancorp, Inc.*		24		264
Gladstone Commercial Corp.		14		264
Taylor Capital Group, Inc.*		20		263
SWS Group, Inc.		52		263
Thomas Properties Group, Inc.*		59		249
First Interstate Bancsystem, Inc. — Class A		16		244
Chatham Lodging Trust		14		242
State Bancorp, Inc.		26		241
Golub Capital BDC, Inc.		14		240
Harris & Harris Group, Inc.*		54		237
Sierra Bancorp		22		236
American National Bankshares, Inc.		10		235
Baldwin & Lyons, Inc. — Class B		10		235
UMH Properties, Inc.		23		235
OmniAmerican Bancorp, Inc.*		17		230
Capital City Bank Group, Inc.		18		227
EMC Insurance Group, Inc.		10		226
Solar Capital Ltd.		9		223
ViewPoint Financial Group		19		222
Wilshire Bancorp, Inc.		29		221
Tower Bancorp, Inc.		10		220
MPG Office Trust, Inc.*		80		220
Enterprise Financial Services Corp.		21		220
NASB Financial, Inc.		13		218
LaBranche & Company, Inc.*		60		216
Mission West Properties, Inc.		32		214
Kearny Financial Corp.		24		206
Clifton Savings Bancorp, Inc.		19		205
Sanders Morris Harris Group, Inc.		28		203
West Bancorporation, Inc.		26		203
Hanmi Financial Corp.*		173		199
First Marblehead Corp.*		90		195
Home Bancorp, Inc.*		14		193
Merchants Bancshares, Inc.		7		193
National Interstate Corp.		9		193
Life Partners Holdings, Inc.		10		191
First Bancorp, Inc.		12		189
Century Bancorp, Inc. — Class A		7		188
Avatar Holdings, Inc.*		9		178
Marlin Business Services Corp.*		14		177
Bancorp Rhode Island, Inc.		6		175
Ladenburg Thalmann Financial Services, Inc.*		147		172
One Liberty Properties, Inc.		10		167
Hallmark Financial Services*		18		164
Asta Funding, Inc.		20		162
Peapack Gladstone Financial Corp.		12		157
Medallion Financial Corp.		19		156
Midsouth Bancorp, Inc.		10		154
Primus Guaranty Ltd.*		30		152
CompuCredit Holdings Corp.*		20		140
Crawford & Co. — Class B*		39		133
Universal Insurance Holdings, Inc.		27		131
Flagstar Bancorp, Inc.*		80		130
THL Credit, Inc.		10		130
Ames National Corp.		6		130
Penson Worldwide, Inc.*		26		127
Asset Acceptance Capital Corp.*		21		125
Rockville Financial, Inc.		10		122
JMP Group, Inc.		16		122
Meridian Interstate Bancorp, Inc.*		10		118

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   91

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Fox Chase Bancorp, Inc.*		9	$	107
Roma Financial Corp.		10		106
First BanCorp*		226		104
Encore Bancshares, Inc.*		10		103
ESB Financial Corp.		6		97
BofI Holding, Inc.*		6		93
Rodman & Renshaw Capital Group, Inc.*		34		91
MidWestOne Financial Group, Inc.		6		91
Pzena Investment Management, Inc. — Class A		11		81
Porter Bancorp, Inc.		7		76
Diamond Hill Investment Group, Inc.		1		72
First South Bancorp, Inc.		10		65
Green Bankshares, Inc.*		20		64
Heritage Financial Group, Inc.		5		62
Waterstone Financial, Inc.*		14		45
Doral Financial Corp.*		28		39
Total Financials				397,253
INFORMATION TECHNOLOGY - 2.1%
Riverbed Technology, Inc.*		214		7,526
TIBCO Software, Inc.*		272		5,361
VeriFone Systems, Inc.*		139		5,360
Rackspace Hosting, Inc.*		163		5,120
Parametric Technology Corp.*		189		4,258
Jack Henry & Associates, Inc.		141		4,110
Acme Packet, Inc.*		75		3,987
Concur Technologies, Inc.*		70		3,635
Finisar Corp.*		120		3,563
ADTRAN, Inc.		96		3,476
Ariba, Inc.*		146		3,430
RF Micro Devices, Inc.*		441		3,241
Microsemi Corp.*		140		3,206
Progress Software Corp.*		75		3,174
Anixter International, Inc.		53		3,166
Hittite Microwave Corp.*		51		3,113
TriQuint Semiconductor, Inc.*		260		3,039
Netlogic Microsystems, Inc.*		96		3,015
Veeco Instruments, Inc.*		70		3,007
SuccessFactors, Inc.*		103		2,983
InterDigital, Inc.		70		2,915
Plantronics, Inc.		76		2,829
Quest Software, Inc.*		101		2,802
Cavium Networks, Inc.*		74		2,788
Aruba Networks, Inc.*		132		2,756
Omnivision Technologies, Inc.*		91		2,695
Blackboard, Inc.*		65		2,685
CACI International, Inc. — Class A*		50		2,670
Wright Express Corp.*		58		2,668
GSI Commerce, Inc.*		109		2,529
Arris Group, Inc.*		209		2,345
MAXIMUS, Inc.		35		2,295
Digital River, Inc.*		66		2,272
Fortinet, Inc.*		70		2,265
Semtech Corp.*		100		2,264
Cymer, Inc.*		50		2,254
Viasat, Inc.*		50		2,221
Netgear, Inc.*		65		2,189
Mentor Graphics Corp.*		180		2,160
Cognex Corp.		72		2,118
ValueClick, Inc.*		132		2,116
OpenTable, Inc.*		30		2,114
Lawson Software, Inc.*		228		2,109
Sapient Corp.		173		2,093
Plexus Corp.*		67		2,073
JDA Software Group, Inc.*		73		2,044
Ultimate Software Group, Inc.*		42		2,042
CommVault Systems, Inc.*		71		2,032
j2 Global Communications, Inc.*		70		2,026
TTM Technologies, Inc.*		135		2,013
Blue Coat Systems, Inc.*		67		2,001
Rofin-Sinar Technologies, Inc.*		54		1,914
Coherent, Inc.*		42		1,896
Littelfuse, Inc.		40		1,882
Cabot Microelectronics Corp.*		45		1,865
MKS Instruments, Inc.*		76		1,861
Advent Software, Inc.*		32		1,853
Taleo Corp. — Class A*		67		1,853
Acxiom Corp.*		107		1,835
Synaptics, Inc.*		62		1,822
Integrated Device Technology, Inc.*		273		1,818
Benchmark Electronics, Inc.*		100		1,816
Unisys Corp.*		70		1,812
Blackbaud, Inc.		69		1,787
Tessera Technologies, Inc.*		79		1,750
Cirrus Logic, Inc.*		108		1,726
Entegris, Inc.*		226		1,688
Power Integrations, Inc.		42		1,686
Loral Space & Communications, Inc.*		22		1,683
Diodes, Inc.*		62		1,673
DTS, Inc.*		34		1,668
ACI Worldwide, Inc.*		62		1,666
Fair Isaac Corp.		70		1,636
TiVo, Inc.*		187		1,614
Mantech International Corp. — Class A*		39		1,612
FEI Co.*		60		1,585
L-1 Identity Solutions, Inc. — Class 1*		133		1,584
Constant Contact, Inc.*		51		1,580
Art Technology Group, Inc.*		257		1,537
Universal Display Corp.*		50		1,533
Earthlink, Inc.		178		1,531
Sanmina-SCI Corp.*		133		1,527
Emulex Corp.*		130		1,516

92   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
DealerTrack Holdings, Inc.*		75	$	1,505
Checkpoint Systems, Inc.*		72		1,480
Take-Two Interactive Software, Inc.*		120		1,469
Infinera Corp.*		142		1,467
SRA International, Inc. — Class A*		70		1,432
SAVVIS, Inc.*		56		1,429
Websense, Inc.*		70		1,417
Euronet Worldwide, Inc.*		81		1,413
Entropic Communications, Inc.*		115		1,389
Comtech Telecommunications Corp.		50		1,387
Sourcefire, Inc.*		53		1,374
Harmonic, Inc.*		157		1,345
Scansource, Inc.*		41		1,308
Quantum Corp.*		349		1,298
Aspen Technology, Inc.*		102		1,295
Tekelec*		107		1,274
Terremark Worldwide, Inc.*		97		1,256
SYNNEX Corp.*		40		1,248
Power-One, Inc.*		122		1,244
OSI Systems, Inc.*		34		1,236
Amkor Technology, Inc.*		167		1,234
Applied Micro Circuits Corp.*		115		1,228
DG FastChannel, Inc.*		42		1,213
IPG Photonics Corp.*		38		1,202
MIPS Technologies, Inc. — Class A*		79		1,198
Manhattan Associates, Inc.*		39		1,191
Black Box Corp.		31		1,187
STEC, Inc.*		66		1,165
SolarWinds, Inc.*		60		1,155
Standard Microsystems Corp.*		40		1,153
Lattice Semiconductor Corp.*		190		1,151
Stratasys, Inc.*		35		1,142
CSG Systems International, Inc.*		60		1,136
Pegasystems, Inc.		31		1,136
MTS Systems Corp.		30		1,124
Oclaro, Inc.*		85		1,118
FARO Technologies, Inc.*		34		1,117
Rogers Corp.*		29		1,109
Netscout Systems, Inc.*		48		1,104
Brightpoint, Inc.*		125		1,091
Sonic Solutions, Inc.*		72		1,080
Micrel, Inc.		83		1,078
Newport Corp.*		61		1,060
Insight Enterprises, Inc.*		80		1,053
Bottomline Technologies, Inc.*		48		1,042
Tyler Technologies, Inc.*		50		1,038
ATMI, Inc.*		52		1,037
Brooks Automation, Inc.*		114		1,034
TeleTech Holdings, Inc.*		50		1,030
Compellent Technologies, Inc.*		37		1,021
Volterra Semiconductor Corp.*		44		1,019
RightNow Technologies, Inc.*		43		1,018
Radiant Systems, Inc.*		52		1,018
Daktronics, Inc.		62		987
Heartland Payment Systems, Inc.		64		987
Intermec, Inc.*		77		975
Electronics for Imaging, Inc.*		67		959
Silicon Image, Inc.*		129		948
Sonus Networks, Inc.*		343		916
comScore, Inc.*		41		915
Avid Technology, Inc.*		52		908
Ebix, Inc.*		38		899
United Online, Inc.		136		898
NetSuite, Inc.*		35		875
NIC, Inc.		89		864
Ixia*		51		856
MicroStrategy, Inc. — Class A*		10		855
Kulicke & Soffa Industries, Inc.*		118		850
Ancestry.com, Inc.*		30		850
Xyratex Ltd.*		52		848
VirnetX Holding Corp.		57		846
Park Electrochemical Corp.		28		840
Maxwell Technologies, Inc.*		44		831
Vocus, Inc.*		30		830
Kenexa Corp.*		38		828
Synchronoss Technologies, Inc.*		31		828
Advanced Energy Industries, Inc.*		60		818
Ultratech, Inc.*		41		815
Electro Scientific Industries, Inc.*		50		802
Cardtronics, Inc.*		45		797
TNS, Inc.*		38		790
Methode Electronics, Inc.		60		778
Smith Micro Software, Inc.*		49		771
Epicor Software Corp.*		76		768
Syntel, Inc.		16		765
Anadigics, Inc.*		110		762
Monolithic Power Systems, Inc.*		46		760
LogMeIn, Inc.*		17		754
Mercury Computer Systems, Inc.*		41		754
iGate Corp.		38		749
LivePerson, Inc.*		66		746
Sigma Designs, Inc.*		51		723
Zoran Corp.*		82		722
Formfactor, Inc.*		81		719
EPIQ Systems, Inc.		52		714
ExlService Holdings, Inc.*		32		687
Cohu, Inc.		41		680
THQ, Inc.*		112		679
Move, Inc.*		263		676
Rubicon Technology, Inc.*		31		653
EMS Technologies, Inc.*		33		653
CTS Corp.		59		653
Measurement Specialties, Inc.*		22		646

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   93

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Hypercom Corp.*		77	$	644
Multi-Fineline Electronix, Inc.*		23		609
Axcelis Technologies, Inc.*		176		609
LTX-Credence Corp.*		82		607
Forrester Research, Inc.		17		600
S1 Corp.*		86		593
NVE Corp.*		10		578
Travelzoo, Inc.*		14		577
RealNetworks, Inc.*		136		571
Powerwave Technologies, Inc.*		221		561
Oplink Communications, Inc.*		30		554
Internap Network Services Corp.*		91		553
Knot, Inc.*		55		543
Sycamore Networks, Inc.		26		535
Ceva, Inc.*		26		533
Intevac, Inc.*		38		532
Supertex, Inc.*		22		532
Infospace, Inc.*		64		531
ShoreTel, Inc.*		67		523
Photronics, Inc.*		86		508
Aviat Networks, Inc.*		100		507
Wave Systems Corp. — Class A*		127		500
Perficient, Inc.*		40		500
support.com, Inc.*		77		499
SMART Modular Technologies WWH, Inc.*		86		495
Magma Design Automation, Inc.*		98		491
AXT, Inc.*		47		491
Echelon Corp.*		48		489
IXYS Corp.*		42		488
Electro Rent Corp.		30		485
Super Micro Computer, Inc.*		42		485
Anaren, Inc.*		23		480
Ciber, Inc.*		102		477
Limelight Networks, Inc.*		82		476
Imation Corp.*		46		474
Extreme Networks*		152		470
ModusLink Global Solutions, Inc.*		70		469
Symmetricom, Inc.*		66		468
Rosetta Stone, Inc.*		22		467
Silicon Graphics International Corp.*		51		461
Opnet Technologies, Inc.		17		455
Bel Fuse, Inc. — Class B		19		454
Kopin Corp.*		108		449
KIT Digital, Inc.*		28		449
Rudolph Technologies, Inc.*		54		444
Monotype Imaging Holdings, Inc.*		40		444
Novatel Wireless, Inc.*		46		439
Pericom Semiconductor Corp.*		40		439
Cray, Inc.*		61		436
Dice Holdings, Inc.*		30		431
Seachange International, Inc.*		50		427
Digi International, Inc.*		38		422
Exar Corp.*		60		419
Interactive Intelligence, Inc.*		16		419
Zygo Corp.*		34		416
Nanometrics, Inc.*		32		411
Virtusa Corp.*		25		409
Actuate Corp.*		71		405
Ultra Clean Holdings, Inc.*		43		400
Globecomm Systems, Inc.*		40		400
MoneyGram International, Inc.*		144		390
Digimarc Corp.*		13		390
UTStarcom, Inc.*		187		385
Cass Information Systems, Inc.		10		379
Zix Corp.*		87		371
Lionbridge Technologies, Inc.*		99		365
PROS Holdings, Inc.*		32		364
Spectrum Control, Inc.*		24		360
Pulse Electronics Corp.		66		351
Keynote Systems, Inc.		24		351
DemandTec, Inc.*		31		336
LoopNet, Inc.*		30		333
Spansion, Inc. — Class A*		16		331
Gerber Scientific, Inc.*		42		331
Mindspeed Technologies, Inc.*		54		329
Radisys Corp.*		37		329
Immersion Corp.*		49		329
SS&C Technologies Holdings, Inc.*		16		328
QuinStreet, Inc.*		17		327
VASCO Data Security International, Inc.*		40		325
Integrated Silicon Solution, Inc.*		40		321
TeleCommunication Systems, Inc. — Class A*		68		318
Integral Systems, Inc.*		32		317
DSP Group, Inc.*		38		309
Advanced Analogic Technologies, Inc.*		74		297
Openwave Systems, Inc.*		139		295
Saba Software, Inc.*		48		294
Comverge, Inc.*		42		290
Liquidity Services, Inc.*		20		281
Echo Global Logistics, Inc.*		23		277
FSI International, Inc.*		62		274
American Software, Inc. — Class A		40		271
X-Rite, Inc.*		59		270
Richardson Electronics Ltd.		23		269
GSI Technology, Inc.*		33		267
Stamps.com, Inc.		20		265
Marchex, Inc. — Class A		26		248
Mattson Technology, Inc.*		82		246
Global Cash Access Holdings, Inc.*		76		242

94   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Tessco Technologies, Inc.		15	$	239
KVH Industries, Inc.*		20		239
Rimage Corp.*		16		239
DDi Corp.		20		235
MoSys, Inc.*		41		233
Network Equipment Technologies, Inc.*		50		232
PLX Technology, Inc.*		64		231
BigBand Networks, Inc.*		82		230
Deltek, Inc.*		31		225
Local.com Corp.*		34		221
Trident Microsystems, Inc.*		122		217
Conexant Systems, Inc.*		132		215
Online Resources Corp.*		45		209
Occam Networks, Inc.*		24		208
Viasystems Group, Inc.*		10		201
Renaissance Learning, Inc.		17		201
CPI International, Inc.*		10		194
PDF Solutions, Inc.*		40		193
CDC Corp. — Class A*		54		190
Evergreen Solar, Inc.*		324		189
PC Connection, Inc.*		20		177
SRS Labs, Inc.*		20		176
Hackett Group, Inc.*		50		176
Computer Task Group, Inc.*		16		174
Calix, Inc.*		10		169
PC-Telephone, Inc.*		28		168
FalconStor Software, Inc.*		50		168
ePlus, Inc.*		7		165
SPS Commerce, Inc.*		10		158
Agilysys, Inc.*		27		152
Tier Technologies, Inc. — Class B*		24		144
NCI, Inc. — Class A*		6		138
Hutchinson Technology, Inc.*		37		137
Guidance Software, Inc.*		19		137
Alpha & Omega Semiconductor Ltd.*		10		128
TechTarget, Inc.*		16		127
Meru Networks, Inc.*		8		123
Opnext, Inc.*		69		121
Presstek, Inc.*		53		118
MaxLinear, Inc. — Class A*		10		108
Network Engines, Inc.*		62		94
QAD, Inc. — Class A*		9		82
TeleNav, Inc.*		10		73
Ikanos Communications, Inc.*		50		67
Convio, Inc.*		8		66
Stream Global Services, Inc.*		10		40
QAD, Inc. — Class B*		2		20
Total Information Technology				358,772
INDUSTRIALS - 1.8%
Nordson Corp.		63		5,788
Baldor Electric Co.		79		4,980
GrafTech International Ltd.*		197		3,908
Acuity Brands, Inc.		67		3,864
Clean Harbors, Inc.*		45		3,784
Woodward Governor Co.		99		3,718
Alaska Air Group, Inc.*		64		3,628
Esterline Technologies Corp.*		52		3,567
CLARCOR, Inc.		80		3,431
Genesee & Wyoming, Inc. — Class A*		63		3,336
EMCOR Group, Inc.*		110		3,188
JetBlue Airways Corp.*		469		3,100
Watsco, Inc.		47		2,965
Actuant Corp. — Class A		111		2,955
Belden, Inc.		79		2,909
Hexcel Corp.*		156		2,822
Moog, Inc. — Class A*		68		2,706
US Airways Group, Inc.*		270		2,703
Triumph Group, Inc.		30		2,682
Teledyne Technologies, Inc.*		60		2,638
EnerSys*		82		2,634
Tetra Tech, Inc.*		105		2,631
Avis Budget Group, Inc.*		169		2,630
Kaydon Corp.		64		2,606
Curtiss-Wright Corp.		78		2,590
Brady Corp. — Class A		77		2,511
Dollar Thrifty Automotive Group, Inc.*		53		2,505
AO Smith Corp.		65		2,475
Corporate Executive Board Co.		64		2,403
HEICO Corp.		47		2,398
Geo Group, Inc.*		97		2,392
Herman Miller, Inc.		94		2,378
United Stationers, Inc.*		37		2,361
United Rentals, Inc.*		102		2,320
Applied Industrial Technologies, Inc.		70		2,274
ABM Industries, Inc.		86		2,262
Old Dominion Freight Line, Inc.*		70		2,239
HNI Corp.		71		2,215
Middleby Corp.*		26		2,195
Rollins, Inc.		109		2,153
Brink’s Co.		80		2,150
Atlas Air Worldwide Holdings, Inc.*		38		2,122
HUB Group, Inc. — Class A*		60		2,108
Knight Transportation, Inc.		105		1,995
Mueller Industries, Inc.		60		1,962
II-VI, Inc.*		42		1,947
Simpson Manufacturing Company, Inc.		62		1,916
American Superconductor Corp.*		67		1,916
Korn*		82		1,895
Healthcare Services Group, Inc.		115		1,871
Deluxe Corp.		79		1,819

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   95

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Watts Water Technologies, Inc. — Class A		48	$	1,756
Granite Construction, Inc.		64		1,756
GeoEye, Inc.*		40		1,696
DigitalGlobe, Inc.*		53		1,681
Werner Enterprises, Inc.		74		1,672
Insituform Technologies, Inc. — Class A*		63		1,670
Polypore International, Inc.*		40		1,629
Acacia Research — Acacia Technologies*		62		1,608
AirTran Holdings, Inc.*		217		1,604
AAR Corp.*		58		1,593
Barnes Group, Inc.		77		1,592
Orbital Sciences Corp.*		92		1,576
Franklin Electric Company, Inc.		40		1,557
CoStar Group, Inc.*		27		1,554
Chart Industries, Inc.*		46		1,554
ESCO Technologies, Inc.		41		1,551
Robbins & Myers, Inc.		43		1,539
RBC Bearings, Inc.*		39		1,524
Briggs & Stratton Corp.		76		1,496
SYKES Enterprises, Inc.*		73		1,479
Resources Connection, Inc.		79		1,469
Ladish Company, Inc.*		30		1,458
Ameron International Corp.		19		1,451
Skywest, Inc.		92		1,437
Beacon Roofing Supply, Inc.*		80		1,430
Steelcase, Inc. — Class A		135		1,427
Knoll, Inc.		83		1,389
MasTec, Inc.*		93		1,357
Amerco, Inc.*		14		1,345
Raven Industries, Inc.		28		1,335
Advisory Board Co.*		28		1,334
Allegiant Travel Co. — Class A		27		1,329
Ceradyne, Inc.*		42		1,324
CIRCOR International, Inc.		31		1,311
Forward Air Corp.		46		1,305
Interface, Inc. — Class A		83		1,299
Wabash National Corp.*		109		1,292
Heartland Express, Inc.		80		1,282
Mobile Mini, Inc.*		64		1,260
Cubic Corp.		26		1,226
Quanex Building Products Corp.		64		1,214
Blount International, Inc.*		76		1,198
Titan International, Inc.		61		1,192
Kaman Corp.		41		1,192
TrueBlue, Inc.*		66		1,187
A123 Systems, Inc.*		123		1,173
Administaff, Inc.		40		1,172
Tennant Co.		30		1,152
Interline Brands, Inc.*		50		1,138
Mine Safety Appliances Co.		36		1,121
Arkansas Best Corp.		40		1,097
Albany International Corp. — Class A		46		1,090
Huron Consulting Group, Inc.*		41		1,084
EnPro Industries, Inc.*		26		1,081
McGrath Rentcorp		41		1,075
Astec Industries, Inc.*		33		1,070
Rush Enterprises, Inc. — Class A*		52		1,063
Mueller Water Products, Inc. — Class A		251		1,047
Unifirst Corp.		19		1,046
Badger Meter, Inc.		23		1,017
Universal Forest Products, Inc.		26		1,011
John Bean Technologies Corp.		50		1,006
Heidrick & Struggles International, Inc.		35		1,003
TAL International Group, Inc.		32		988
AZZ, Inc.		24		960
Lindsay Corp.		16		951
Applied Signal Technology, Inc.		25		947
Consolidated Graphics, Inc.*		19		920
SFN Group, Inc.*		94		917
3D Systems Corp.*		29		913
Griffon Corp.*		71		905
GT Solar International, Inc.*		99		903
Layne Christensen Co.*		26		895
Aircastle Ltd.		85		888
Tutor Perini Corp.		41		878
Encore Wire Corp.		35		878
Satcon Technology Corp.*		194		873
NACCO Industries, Inc. — Class A		8		867
G&K Services, Inc. — Class A		28		865
American Science & Engineering, Inc.		10		852
Dycom Industries, Inc.*		57		841
Trex Company, Inc.*		35		839
EnergySolutions, Inc.		150		836
Sun Hydraulics Corp.		22		832
Altra Holdings, Inc.*		41		814
Aerovironment, Inc.*		30		805
ICF International, Inc.*		31		797
Kforce, Inc.*		49		793
Comfort Systems USA, Inc.		60		790
RSC Holdings, Inc.*		81		789
ACCO Brands Corp.*		92		784
LB Foster Co. — Class A*		19		778
Genco Shipping & Trading Ltd.*		54		778
Kelly Services, Inc. — Class A*		41		771
Great Lakes Dredge & Dock Corp.		103		759
Gibraltar Industries, Inc.*		55		746
Air Transport Services Group, Inc.*		94		743
Viad Corp.		29		739

96   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Hawaiian Holdings, Inc.*		94	$	737
Dolan Co.*		52		724
Colfax Corp.*		39		718
Navigant Consulting, Inc.*		78		718
Apogee Enterprises, Inc.		53		714
Tredegar Corp.		36		698
Standex International Corp.		23		688
Federal Signal Corp.		100		686
Ennis, Inc.		40		684
Exponent, Inc.*		18		676
Greenbrier Companies, Inc.*		31		651
EnerNOC, Inc.*		27		646
Force Protection, Inc.*		116		639
Columbus McKinnon Corp.*		31		630
Team, Inc.*		26		629
Standard Parking Corp.*		31		586
Commercial Vehicle Group, Inc.*		36		585
H&E Equipment Services, Inc.*		50		578
Textainer Group Holdings Ltd.		20		570
MYR Group, Inc.*		27		567
Dynamic Materials Corp.		25		564
Marten Transport Ltd.		26		556
Gorman-Rupp Co.		17		549
RailAmerica, Inc.*		40		518
Orion Marine Group, Inc.*		44		510
M&F Worldwide Corp.*		22		508
GenCorp, Inc.*		98		507
Eagle Bulk Shipping, Inc.*		100		498
Saia, Inc.*		30		498
Vicor Corp.		30		492
Cenveo, Inc.*		92		491
Trimas Corp.*		24		491
Northwest Pipe Co.*		20		481
Sauer-Danfoss, Inc.*		17		480
Ducommun, Inc.		22		479
Cascade Corp.		10		473
On Assignment, Inc.*		58		473
Taser International, Inc.*		100		470
Republic Airways Holdings, Inc.*		64		468
CDI Corp.		25		465
FreightCar America, Inc.		16		463
American Reprographics Co.*		61		463
CBIZ, Inc.*		74		462
US Ecology, Inc.		26		452
AAON, Inc.		16		451
CRA International, Inc.*		19		447
Celadon Group, Inc.*		30		444
Michael Baker Corp.*		14		435
NCI Building Systems, Inc.*		31		434
Primoris Services Corp.		45		429
Powell Industries, Inc.*		13		427
Generac Holdings, Inc.*		26		420
Astronics Corp.*		20		420
School Specialty, Inc.*		30		418
Houston Wire & Cable Co.		31		417
Furmanite Corp.*		60		415
Schawk, Inc. — Class A		20		412
CAI International, Inc.*		21		412
Excel Maritime Carriers Ltd. — Class A*		73		411
Pacer International, Inc.*		60		410
PMFG, Inc.*		25		410
Sterling Construction Company, Inc.*		31		404
Advanced Battery Technologies, Inc.*		104		400
Herley Industries, Inc.*		23		398
American Railcar Industries, Inc.*		18		398
Dynamex, Inc.*		16		396
Kratos Defense & Security Solutions, Inc.*		30		395
Ampco-Pittsburgh Corp.		14		393
Capstone Turbine Corp.*		407		391
Alamo Group, Inc.		14		389
Insteel Industries, Inc.		31		387
Ener1, Inc.*		102		387
Graham Corp.		19		380
Douglas Dynamics, Inc.		25		379
Kadant, Inc.*		16		377
Energy Conversion Devices, Inc.*		81		373
Multi-Color Corp.		19		370
Tecumseh Products Co. — Class A*		28		365
VSE Corp.		11		363
FuelCell Energy, Inc.*		156		360
Aceto Corp.		40		360
Metalico, Inc.*		61		359
Twin Disc, Inc.		12		358
Kimball International, Inc. — Class B		50		345
Flow International Corp.*		83		339
Broadwind Energy, Inc.*		146		337
APAC Customer Services, Inc.*		55		334
Mistras Group, Inc.*		24		324
Roadrunner Transportation Systems, Inc.*		22		318
Titan Machinery, Inc.*		16		309
Baltic Trading Ltd.		30		306
Lawson Products, Inc.		12		299
Casella Waste Systems, Inc. — Class A*		42		298
Park-Ohio Holdings Corp.*		14		293
Hudson Highland Group, Inc.*		49		286
Miller Industries, Inc.		20		285
Microvision, Inc.*		147		273
LSI Industries, Inc.		31		262
Fuel Tech, Inc.*		27		262
Innerworkings, Inc.*		40		262
Pike Electric Corp.*		30		257

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   97

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Energy Recovery, Inc.*		69	$	253
LaBarge, Inc.*		16		251
Courier Corp.		16		248
Met-Pro Corp.		21		248
Hill International, Inc.*		38		246
American Woodmark Corp.		10		245
DXP Enterprises, Inc.*		10		240
Lydall, Inc.*		29		233
PowerSecure International, Inc.*		30		233
Ultrapetrol Bahamas Ltd.*		36		231
International Shipholding Corp.		9		229
Quality Distribution, Inc.*		25		227
Horizon Lines, Inc. — Class A		51		223
Pinnacle Airlines Corp.*		28		221
Volt Information Sciences, Inc.*		23		199
Universal Truckload Services, Inc.*		12		191
USA Truck, Inc.*		14		185
GP Strategies Corp.*		17		174
Global Defense Technology & Systems, Inc.*		10		169
Xerium Technologies, Inc.*		10		159
UQM Technologies, Inc.*		62		142
Barrett Business Services, Inc.		9		140
Franklin Covey Co.*		16		137
Builders FirstSource, Inc.*		66		130
PAM Transportation Services, Inc.*		10		112
Applied Energetics, Inc.*		129		110
Standard Register Co.		31		106
LMI Aerospace, Inc.*		6		96
Argan, Inc.*		10		93
Omega Flex, Inc.*		5		83
Hoku Corp.*		29		77
PGT, Inc.*		31		76
Coleman Cable, Inc.*		12		75
BlueLinx Holdings, Inc.*		20		73
Compx International, Inc.		5		57
LECG Corp.*		40		55
Total Industrials				304,640
CONSUMER DISCRETIONARY - 1.6%
Sotheby’s		110		4,950
Deckers Outdoor Corp.*		57		4,545
Tenneco, Inc.*		100		4,116
Warnaco Group, Inc.*		72		3,965
Dana Holding Corp.*		227		3,907
Polaris Industries, Inc.		48		3,745
Rent-A-Center, Inc. — Class A		110		3,551
ArvinMeritor, Inc.*		165		3,386
Cheesecake Factory, Inc.*		104		3,189
Under Armour, Inc. — Class A*		56		3,071
Vail Resorts, Inc.*		59		3,070
Jo-Ann Stores, Inc.*		50		3,011
Coinstar, Inc.*		52		2,935
Carter’s, Inc.*		97		2,863
AnnTaylor Stores Corp.*		102		2,794
Life Time Fitness, Inc.*		68		2,787
Brunswick Corp.		146		2,736
Live Nation Entertainment, Inc.*		236		2,695
Valassis Communications, Inc.*		83		2,685
Ascena Retail Group, Inc.*		101		2,668
Dillard’s, Inc. — Class A		70		2,656
Wolverine World Wide, Inc.		80		2,550
CROCS, Inc.*		145		2,482
Childrens Place Retail Stores, Inc.*		50		2,482
Cooper Tire & Rubber Co.		103		2,429
OfficeMax, Inc.*		137		2,425
Saks, Inc.*		223		2,386
Eastman Kodak Co.*		439		2,353
Sally Beauty Holdings, Inc.*		160		2,325
Cracker Barrel Old Country Store, Inc.		42		2,300
Iconix Brand Group, Inc.*		117		2,259
Collective Brands, Inc.*		106		2,237
Men’s Wearhouse, Inc.		87		2,173
Gaylord Entertainment Co.*		60		2,156
Jones Group, Inc.		136		2,113
Jos A. Bank Clothiers, Inc.*		51		2,056
Capella Education Co.*		30		1,997
Orient-Express Hotels Ltd. — Class A*		152		1,975
PF Chang’s China Bistro, Inc.		40		1,938
Jack in the Box, Inc.*		90		1,902
Pool Corp.		82		1,848
Pier 1 Imports, Inc.*		176		1,848
HSN, Inc.*		60		1,838
Hibbett Sports, Inc.*		49		1,808
Steven Madden Ltd.*		43		1,794
Ulta Salon Cosmetics & Fragrance, Inc.*		52		1,768
Matthews International Corp. — Class A		50		1,749
Timberland Co. — Class A*		70		1,721
National CineMedia, Inc.		86		1,712
Buckle, Inc.		45		1,700
Bob Evans Farms, Inc.		50		1,648
Scholastic Corp.		55		1,625
American Greetings Corp. — Class A		71		1,573
Texas Roadhouse, Inc. — Class A*		91		1,563
CEC Entertainment, Inc.*		40		1,553
Regis Corp.		92		1,527
Cabela’s, Inc.*		70		1,523
Group 1 Automotive, Inc.		36		1,503
Cinemark Holdings, Inc.		87		1,500
Genesco, Inc.*		40		1,500
Arbitron, Inc.		36		1,495
Helen of Troy Ltd.*		49		1,457

98   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Monro Muffler Brake, Inc.		42	$	1,453
Ruby Tuesday, Inc.*		110		1,437
DineEquity, Inc.*		29		1,432
Shutterfly, Inc.*		40		1,401
Cato Corp. — Class A		50		1,371
Blue Nile, Inc.*		24		1,369
Pinnacle Entertainment, Inc.*		97		1,360
Finish Line, Inc. — Class A		78		1,341
BJ’s Restaurants, Inc.*		37		1,311
Columbia Sportswear Co.		21		1,266
American Axle & Manufacturing Holdings, Inc.*		97		1,247
Modine Manufacturing Co.*		80		1,240
PEP Boys-Manny Moe & Jack		92		1,236
G-III Apparel Group Ltd.*		35		1,230
Buffalo Wild Wings, Inc.*		28		1,228
Penske Automotive Group, Inc.*		70		1,219
99 Cents Only Stores*		76		1,211
K12, Inc.*		42		1,204
Ryland Group, Inc.		70		1,192
Skechers U.S.A., Inc. — Class A*		59		1,180
Meritage Homes Corp.*		53		1,177
Steiner Leisure Ltd.*		25		1,168
Liz Claiborne, Inc.*		163		1,167
Interval Leisure Group, Inc.*		72		1,162
Exide Technologies*		120		1,129
Scientific Games Corp. — Class A*		113		1,126
Stage Stores, Inc.		63		1,092
American Public Education, Inc.*		29		1,080
Quiksilver, Inc.*		213		1,080
Lumber Liquidators Holdings, Inc.*		42		1,046
Belo Corp. — Class A*		147		1,041
Sonic Corp.*		102		1,032
Shuffle Master, Inc.*		90		1,031
Domino’s Pizza, Inc.*		64		1,021
Talbots, Inc.*		116		988
Sonic Automotive, Inc. — Class A		74		980
Vitamin Shoppe, Inc.*		29		976
Boyd Gaming Corp.*		90		954
Brown Shoe Company, Inc.		68		947
Grand Canyon Education, Inc.*		48		940
DSW, Inc. — Class A*		24		938
True Religion Apparel, Inc.*		42		935
Asbury Automotive Group, Inc.*		50		924
Callaway Golf Co.		114		920
National Presto Industries, Inc.		7		910
Pre-Paid Legal Services, Inc.*		15		904
Papa John’s International, Inc.*		32		886
Stewart Enterprises, Inc. — Class A		132		883
Jakks Pacific, Inc.*		47		856
Maidenform Brands, Inc.*		36		856
Core-Mark Holding Company, Inc.*		24		854
Fred’s, Inc. — Class A		62		853
RC2 Corp.*		39		849
Superior Industries International, Inc.		40		849
Ethan Allen Interiors, Inc.		42		840
Barnes & Noble, Inc.		59		835
Peet’s Coffee & Tea, Inc.*		20		835
Dorman Products, Inc.*		23		834
Select Comfort Corp.*		90		822
Standard Pacific Corp.*		177		814
NutriSystem, Inc.		38		799
Drew Industries, Inc.		35		795
Corinthian Colleges, Inc.*		152		792
Ascent Media Corp. — Class A*		20		775
La-Z-Boy, Inc. — Class Z*		84		758
Winnebago Industries, Inc.*		49		745
Churchill Downs, Inc.		17		738
PetMed Express, Inc.		41		730
Zumiez, Inc.*		27		726
Knology, Inc.*		46		719
Krispy Kreme Doughnuts, Inc.*		103		719
Harte-Hanks, Inc.		56		715
iRobot Corp.*		28		697
Charming Shoppes, Inc.*		196		696
Lions Gate Entertainment Corp.*		106		690
Universal Technical Institute, Inc.		31		683
Beazer Homes USA, Inc.*		121		652
Retail Ventures, Inc.*		40		652
Wet Seal, Inc. — Class A*		176		651
Express, Inc.		34		639
AFC Enterprises, Inc.*		45		626
Volcom, Inc.		33		623
Rue21, Inc.*		21		616
Oxford Industries, Inc.		24		615
Lithia Motors, Inc. — Class A		43		615
Dex One Corp.*		82		612
Big 5 Sporting Goods Corp.		40		611
Bridgepoint Education, Inc.*		32		608
Pacific Sunwear of California, Inc.*		112		607
California Pizza Kitchen, Inc.*		35		605
Rentrak Corp.*		20		603
Denny’s Corp.*		166		594
Ameristar Casinos, Inc.		37		578
Mediacom Communications Corp. — Class A*		67		567
Sinclair Broadcast Group, Inc. — Class A		69		564
Red Robin Gourmet Burgers, Inc.*		26		558
Perry Ellis International, Inc.*		20		549
K-Swiss, Inc. — Class A*		44		549
Shoe Carnival, Inc.*		20		540
Libbey, Inc.*		34		526
World Wrestling Entertainment, Inc. — Class A		36		513
EW Scripps Co. — Class A*		50		508

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   99

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Fuel Systems Solutions, Inc.*		17	$	499
Lincoln Educational Services Corp.		31		481
Sturm Ruger & Company, Inc.		31		474
McClatchy Co. — Class A*		101		472
Citi Trends, Inc.*		19		466
Entercom Communications Corp. — Class A*		40		463
hhgregg, Inc.*		22		461
Universal Electronics, Inc.*		16		454
Movado Group, Inc.*		28		452
Kirkland’s, Inc.*		32		449
Blyth, Inc.		13		448
Stoneridge, Inc.*		28		442
America’s Car-Mart, Inc.*		16		433
Amerigon, Inc.*		39		424
Destination Maternity Corp.*		11		417
M/I Homes, Inc.*		27		415
HOT Topic, Inc.		66		414
Stein Mart, Inc.		44		407
Furniture Brands International, Inc.*		79		406
Warner Music Group Corp.*		72		405
Christopher & Banks Corp.		64		394
Morgans Hotel Group Co.*		43		390
Marcus Corp.		29		385
Global Sources Ltd.*		40		381
Haverty Furniture Companies, Inc.		29		376
MarineMax, Inc.*		40		374
Smith & Wesson Holding Corp.*		100		374
Cavco Industries, Inc.*		8		374
Hovnanian Enterprises, Inc. — Class A*		90		368
Standard Motor Products, Inc.		26		356
CKX, Inc.*		88		355
Ambassadors Group, Inc.		30		345
Leapfrog Enterprises, Inc. — Class A*		62		344
Journal Communications, Inc. — Class A*		68		343
Unifi, Inc.*		20		339
Casual Male Retail Group, Inc.*		71		337
Coldwater Creek, Inc.*		104		330
Drugstore.com, Inc.*		146		323
Isle of Capri Casinos, Inc.*		31		317
Spartan Motors, Inc.		52		317
Hooker Furniture Corp.		22		311
Audiovox Corp. — Class A*		34		293
Arctic Cat, Inc.*		20		293
Bebe Stores, Inc.		49		292
CSS Industries, Inc.		14		289
Systemax, Inc.*		20		282
Overstock.com, Inc.*		17		280
Multimedia Games, Inc.*		50		279
Lifetime Brands, Inc.*		19		267
Tuesday Morning Corp.*		50		264
Steinway Musical Instruments, Inc.*		13		258
Bon-Ton Stores, Inc.		20		253
AH Belo Corp. — Class A*		29		252
LIN TV Corp. — Class A*		47		249
Ruth’s Hospitality Group, Inc.*		53		245
Archipelago Learning, Inc.*		25		245
Speedway Motorsports, Inc.		16		245
Fisher Communications, Inc.*		11		240
Mac-Gray Corp.		16		239
Skyline Corp.		9		235
Media General, Inc. — Class A*		40		231
Gaiam, Inc. — Class A		30		231
Jamba, Inc.*		100		227
Sealy Corp.*		77		225
O’Charleys, Inc.*		31		223
Weyco Group, Inc.		9		220
Build-A-Bear Workshop, Inc. — Class A*		28		214
Playboy Enterprises, Inc. — Class B*		40		209
Kid Brands, Inc.*		24		205
Entravision Communications Corp. — Class A*		79		203
CPI Corp.		9		203
West Marine, Inc.*		19		201
SuperMedia, Inc.*		23		200
ReachLocal, Inc.*		10		199
Cherokee, Inc.		10		188
Brookfield Homes Corp.*		20		188
Midas, Inc.*		22		178
Lee Enterprises, Inc.*		72		177
New York & Company, Inc.*		40		177
Kenneth Cole Productions, Inc. — Class A*		14		175
Orbitz Worldwide, Inc.*		31		173
McCormick & Schmick’s Seafood Restaurants, Inc.*		19		173
Cumulus Media, Inc. — Class A*		40		172
REX American Resources Corp.*		11		169
Winmark Corp.		5		168
Summer Infant, Inc.*		22		167
Lacrosse Footwear, Inc.		10		164
Martha Stewart Living Omnimedia — Class A*		37		164
Ballantyne Strong, Inc.*		20		155
Carmike Cinemas, Inc.*		20		154
Gray Television, Inc.*		82		153
LodgeNet Interactive Corp.*		36		153
Red Lion Hotels Corp.*		19		152
Outdoor Channel Holdings, Inc.		20		143
US Auto Parts Network, Inc.*		16		134
Marine Products Corp.*		19		127
PRIMEDIA, Inc.		30		126

100   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Johnson Outdoors, Inc. — Class A*		10	$	125
Caribou Coffee Company, Inc.*		12		121
Nexstar Broadcasting Group, Inc. — Class A*		20		120
Carrols Restaurant Group, Inc.*		16		119
Crown Media Holdings, Inc. — Class A*		45		118
Joe’s Jeans, Inc.*		73		114
RG Barry Corp.		10		111
1-800-Flowers.com, Inc. — Class A*		41		110
Cambium Learning Group, Inc.*		30		103
National American University Holdings, Inc.		14		103
Einstein Noah Restaurant Group, Inc.		7		98
Learning Tree International, Inc.		10		96
Westwood One, Inc.*		10		91
Shiloh Industries, Inc.		7		84
American Apparel, Inc.*		50		83
Delta Apparel, Inc.*		6		81
Conn’s, Inc.*		17		80
Monarch Casino & Resort, Inc.*		6		75
Borders Group, Inc.*		80		72
Books-A-Million, Inc. — Class A		12		70
Bluegreen Corp.*		20		64
Culp, Inc.*		6		62
Beasley Broadcasting Group, Inc. — Class A*		10		60
Radio One, Inc. — Class D*		50		56
Princeton Review, Inc.*		44		52
Empire Resorts, Inc.*		40		41
Vitacost.com, Inc.*,†††,1		20		10
Total Consumer Discretionary				270,091
HEALTH CARE - 1.4%
Salix Pharmaceuticals Ltd.*		86		4,051
AMERIGROUP Corp.*		86		3,777
Onyx Pharmaceuticals, Inc.*		102		3,761
STERIS Corp.		101		3,682
Dionex Corp.*		31		3,658
Healthsouth Corp.*		155		3,210
Owens & Minor, Inc.		102		3,002
Catalyst Health Solutions, Inc.*		61		2,836
HMS Holdings Corp.*		43		2,785
Haemonetics Corp.*		42		2,654
Healthspring, Inc.*		99		2,626
Medicis Pharmaceutical Corp. — Class A		98		2,625
Theravance, Inc.*		102		2,557
Magellan Health Services, Inc.*		54		2,553
Masimo Corp.		87		2,529
Sirona Dental Systems, Inc.*		59		2,465
InterMune, Inc.*		67		2,439
Chemed Corp.		38		2,413
Immucor, Inc.*		121		2,399
Pharmasset, Inc.*		55		2,388
Incyte Corporation Ltd.*		143		2,368
Cepheid, Inc.*		104		2,366
Par Pharmaceutical Companies, Inc.*		60		2,311
West Pharmaceutical Services, Inc.		54		2,225
Viropharma, Inc.*		128		2,217
American Medical Systems Holdings, Inc.*		117		2,207
Cubist Pharmaceuticals, Inc.*		103		2,204
Parexel International Corp.*		102		2,165
Seattle Genetics, Inc.*		142		2,123
WellCare Health Plans, Inc.*		70		2,115
Quality Systems, Inc.		30		2,095
Nektar Therapeutics*		163		2,095
Volcano Corp.*		76		2,076
Bruker Corp.*		125		2,075
Centene Corp.*		81		2,053
Impax Laboratories, Inc.*		102		2,051
athenahealth, Inc.*		50		2,049
PSS World Medical, Inc.*		90		2,034
Alkermes, Inc.*		159		1,953
Align Technology, Inc.*		99		1,934
HeartWare International, Inc.*		22		1,927
Meridian Bioscience, Inc.		75		1,737
Amedisys, Inc.*		51		1,708
Martek Biosciences Corp.*		54		1,690
Neogen Corp.*		41		1,682
NuVasive, Inc.*		65		1,667
Acorda Therapeutics, Inc.*		61		1,663
Isis Pharmaceuticals, Inc.*		162		1,639
Integra LifeSciences Holdings Corp.*		34		1,608
Invacare Corp.		52		1,568
Cyberonics, Inc.*		50		1,551
Auxilium Pharmaceuticals, Inc.*		71		1,498
Zoll Medical Corp.*		40		1,489
Exelixis, Inc.*		180		1,478
PDL BioPharma, Inc.		234		1,458
MedAssets, Inc.*		72		1,454
Gentiva Health Services, Inc.*		53		1,410
Arthrocare Corp.*		44		1,367
Questcor Pharmaceuticals, Inc.*		90		1,326
Kindred Healthcare, Inc.*		72		1,323
CONMED Corp.*		49		1,295
DexCom, Inc.*		92		1,256
Air Methods Corp.*		22		1,238
Savient Pharmaceuticals, Inc.*		110		1,225
Medicines Co.*		86		1,215
Landauer, Inc.		20		1,199
Vivus, Inc.*		126		1,181
MWI Veterinary Supply, Inc.*		18		1,137
Luminex Corp.*		61		1,115

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   101

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Micromet, Inc.*		135	$	1,096
IPC The Hospitalist Company, Inc.*		28		1,092
Targacept, Inc.*		41		1,086
Amsurg Corp. — Class A*		51		1,068
Immunogen, Inc.*		114		1,056
RehabCare Group, Inc.*		44		1,043
Computer Programs & Systems, Inc.		22		1,030
Insulet Corp.*		66		1,023
Universal American Corp.		50		1,022
Enzon Pharmaceuticals, Inc.*		84		1,022
Orthofix International N.V.*		35		1,015
Momenta Pharmaceuticals, Inc.*		67		1,003
Analogic Corp.		20		990
LHC Group, Inc.*		33		990
NxStage Medical, Inc.*		39		970
Abaxis, Inc.*		36		967
Greatbatch, Inc.*		40		966
Wright Medical Group, Inc.*		60		932
Sequenom, Inc.*		116		930
Ariad Pharmaceuticals, Inc.*		182		928
Halozyme Therapeutics, Inc.*		116		919
Bio-Reference Labs, Inc.*		41		909
MannKind Corp.*		112		903
Celera Corp.*		139		876
NPS Pharmaceuticals, Inc.*		108		853
Medivation, Inc.*		56		850
Merit Medical Systems, Inc.*		53		839
Inspire Pharmaceuticals, Inc.*		99		832
Medidata Solutions, Inc.*		34		812
Geron Corp.*		157		812
Hanger Orthopedic Group, Inc.*		38		805
Molina Healthcare, Inc.*		28		780
Accelrys, Inc.*		91		755
Conceptus, Inc.*		54		745
ICU Medical, Inc.*		20		730
Delcath Systems, Inc.*		74		725
SIGA Technologies, Inc.*		51		714
National Healthcare Corp.		15		694
Rigel Pharmaceuticals, Inc.*		91		685
Healthways, Inc.*		60		670
Omnicell, Inc.*		46		665
Natus Medical, Inc.*		46		652
Syneron Medical Ltd.*		64		652
Angiodynamics, Inc.*		42		646
Neurocrine Biosciences, Inc.*		84		642
eResearchTechnology, Inc.*		85		625
Quidel Corp.*		43		621
Assisted Living Concepts, Inc. — Class A*		19		618
Emergent Biosolutions, Inc.*		26		610
PharMerica Corp.*		53		607
Alnylam Pharmaceuticals, Inc.*		61		601
Emeritus Corp.*		30		591
Affymetrix, Inc.*		117		588
Depomed, Inc.*		92		585
Allos Therapeutics, Inc.*		126		581
Triple-S Management Corp. — Class B*		30		572
Sun Healthcare Group, Inc.*		45		570
Optimer Pharmaceuticals, Inc.*		50		565
MAKO Surgical Corp.*		37		563
Select Medical Holdings Corp.*		77		563
Accuray, Inc.*		83		560
Endologix, Inc.*		77		551
Metabolix, Inc.*		45		548
Ensign Group, Inc.		22		547
Opko Health, Inc.*		148		543
Spectrum Pharmaceuticals, Inc.*		79		543
SonoSite, Inc.*		17		537
Symmetry Medical, Inc.*		58		536
AMAG Pharmaceuticals, Inc.*		29		525
Akorn, Inc.*		86		522
AVANIR Pharmaceuticals, Inc. — Class A*		124		506
Hi-Tech Pharmacal Company, Inc.*		20		499
Sunrise Senior Living, Inc.*		91		496
BMP Sunstone Corp.*		50		495
Genoptix, Inc.*		26		495
Ardea Biosciences, Inc.*		19		494
Durect Corp.*		142		490
Lexicon Pharmaceuticals, Inc.*		337		485
ABIOMED, Inc.*		50		480
Palomar Medical Technologies, Inc.*		33		469
MAP Pharmaceuticals, Inc.*		28		469
Sangamo Biosciences, Inc.*		69		458
Caliper Life Sciences, Inc.*		72		456
Chelsea Therapeutics International Ltd.*		60		450
Cantel Medical Corp.		19		445
OraSure Technologies, Inc.*		77		443
Cytori Therapeutics, Inc.*		85		441
Rural/Metro Corp.*		30		437
Vanda Pharmaceuticals, Inc.*		46		435
Unilife Corp.*		82		435
Cross Country Healthcare, Inc.*		51		432
BioMimetic Therapeutics, Inc.*		34		432
XenoPort, Inc.*		50		426
Pharmacyclics, Inc.*		69		420
Nabi Biopharmaceuticals*		72		417
Cypress Bioscience, Inc.*		64		415
Medcath Corp.*		29		405
Team Health Holdings, Inc.*		26		404
Pain Therapeutics, Inc.		59		398
US Physical Therapy, Inc.*		20		396
Immunomedics, Inc.*		110		394
Jazz Pharmaceuticals, Inc.*		20		394

102   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULEOFINVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Arqule, Inc.*		67	$	393
Transcend Services, Inc.*		20		392
Dynavax Technologies Corp.*		122		390
Orexigen Therapeutics, Inc.*		48		388
AVI BioPharma, Inc.*		182		386
AMN Healthcare Services, Inc.*		62		381
Novavax, Inc.*		155		377
Exact Sciences Corp.*		62		371
Synovis Life Technologies, Inc.*		23		371
Biotime, Inc.*		44		367
Keryx Biopharmaceuticals, Inc.*		80		366
Staar Surgical Co.*		60		366
American Dental Partners, Inc.*		27		365
ZIOPHARM Oncology, Inc.*		77		359
Eurand N.V.*		30		355
Providence Service Corp.*		22		354
Five Star Quality Care, Inc.*		50		353
Young Innovations, Inc.		11		352
Vascular Solutions, Inc.*		30		352
Almost Family, Inc.*		9		346
Genomic Health, Inc.*		16		342
Dyax Corp.*		157		336
Obagi Medical Products, Inc.*		29		335
BioScrip, Inc.*		64		335
Cadence Pharmaceuticals, Inc.*		44		332
Arena Pharmaceuticals, Inc.*		193		332
Accretive Health, Inc.*		20		325
Vital Images, Inc.*		23		322
Merge Healthcare, Inc.*		86		321
SurModics, Inc.*		27		320
Chindex International, Inc.*		19		313
IRIS International, Inc.*		30		307
TomoTherapy, Inc.*		84		303
Santarus, Inc.*		92		301
Metropolitan Health Networks, Inc.*		67		299
Solta Medical, Inc.*		96		293
Idenix Pharmaceuticals, Inc.*		58		292
Corvel Corp.*		6		290
Clinical Data, Inc.*		18		286
Enzo Biochem, Inc.*		54		285
Array Biopharma, Inc.*		94		281
AVEO Pharmaceuticals, Inc.*		19		278
CryoLife, Inc.*		51		276
Capital Senior Living Corp.*		41		275
Pozen, Inc.*		41		273
Ironwood Pharmaceuticals, Inc. — Class A*		26		269
Biospecifics Technologies Corp.*		10		256
Sciclone Pharmaceuticals, Inc.*		61		255
Albany Molecular Research, Inc.*		45		253
Skilled Healthcare Group, Inc. — Class A*		28		251
Progenics Pharmaceuticals, Inc.*		46		251
Synta Pharmaceuticals Corp.*		41		251
Kensey Nash Corp.*		9		250
Omeros Corp.*		30		247
Vical, Inc.*		121		244
BioCryst Pharmaceuticals, Inc.*		47		243
Cambrex Corp.*		47		243
Ligand Pharmaceuticals, Inc. — Class B*		27		241
Curis, Inc.*		121		240
Spectranetics Corp.*		46		237
SuperGen, Inc.*		90		236
Continucare Corp.*		50		234
RTI Biologics, Inc.*		86		230
Rochester Medical Corp.*		20		218
StemCells, Inc.*		202		218
Osiris Therapeutics, Inc.*		28		218
Furiex Pharmaceuticals, Inc.*		15		217
Maxygen, Inc.		55		216
Inhibitex, Inc.*		83		216
Celldex Therapeutics, Inc.*		52		214
Orthovita, Inc.*		106		213
Peregrine Pharmaceuticals, Inc.*		91		209
Alliance HealthCare Services, Inc.*		49		208
Antares Pharma, Inc.*		122		207
Kendle International, Inc.*		19		207
Affymax, Inc.*		31		206
Alphatec Holdings, Inc.*		76		205
LCA-Vision, Inc.*		35		201
Stereotaxis, Inc.*		52		199
Biosante Pharmaceuticals, Inc.*		121		198
Nymox Pharmaceutical Corp.*		27		190
CardioNet, Inc.*		40		187
Allied Healthcare International, Inc.*		74		186
Cynosure, Inc. — Class A*		18		184
Cutera, Inc.*		22		182
CytRx Corp.*		180		182
Codexis, Inc.*		17		180
Zalicus, Inc.*		112		177
Cytokinetics, Inc.*		84		176
Corcept Therapeutics, Inc.*		45		174
Neuralstem, Inc.*		80		170
Somaxon Pharmaceuticals, Inc.*		50		157
MedQuist, Inc.		18		156
Inovio Pharmaceuticals, Inc.*		134		154
Medical Action Industries, Inc.*		16		153
Cerus Corp.*		62		153
America Service Group, Inc.		10		151
MELA Sciences, Inc.*		42		141
Nanosphere, Inc.*		32		140
PURE Bioscience*		57		127
Exactech, Inc.*		6		113
Infinity Pharmaceuticals, Inc.*		19		113
Lannett Company, Inc.*		20		112

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   103

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Aoxing Pharmaceutical Company, Inc.*		40	$	112
NeurogesX, Inc.*		17		108
Hansen Medical, Inc.*		70		103
DynaVox, Inc. — Class A*		20		103
Cumberland Pharmaceuticals, Inc.*		16		96
Alexza Pharmaceuticals, Inc.*		69		86
Sucampo Pharmaceuticals, Inc. — Class A*		22		84
Transcept Pharmaceuticals, Inc.*		10		74
Alimera Sciences, Inc.*		7		73
Caraco Pharmaceutical Laboratories Ltd.*		14		64
Anthera Pharmaceuticals, Inc.*		13		63
PDI, Inc.*		6		63
Acura Pharmaceuticals, Inc.*		19		63
Cornerstone Therapeutics, Inc.*		10		58
Neostem, Inc.*		38		54
Biodel, Inc.*		29		53
AspenBio Pharma, Inc.*		64		39
Total Health Care				239,198
ENERGY - 0.7%
Brigham Exploration Co.*		187		5,159
Dril-Quip, Inc.*		63		4,896
Complete Production Services, Inc.*		133		3,930
World Fuel Services Corp.		107		3,869
Bill Barrett Corp.*		85		3,496
Berry Petroleum Co. — Class A		80		3,496
Rosetta Resources, Inc.*		90		3,388
Lufkin Industries, Inc.		53		3,307
CARBO Ceramics, Inc.		30		3,106
Bristow Group, Inc.*		62		2,936
Key Energy Services, Inc.*		207		2,687
Patriot Coal Corp.*		133		2,576
McMoRan Exploration Co.*		143		2,451
Swift Energy Co.*		58		2,271
Nordic American Tanker Shipping		83		2,160
Energy XXI Bermuda Ltd.*		77		2,131
Helix Energy Solutions Group, Inc.*		167		2,027
Carrizo Oil & Gas, Inc.*		55		1,897
Northern Oil and Gas, Inc.*		69		1,877
ION Geophysical Corp.*		209		1,772
Kodiak Oil & Gas Corp.*		260		1,716
International Coal Group, Inc.*		220		1,703
Stone Energy Corp.*		69		1,538
Overseas Shipholding Group, Inc.		43		1,523
Ship Finance International Ltd.		70		1,506
Tetra Technologies, Inc.*		116		1,377
Gulfmark Offshore, Inc. — Class A*		45		1,368
RPC, Inc.		75		1,359
Petroleum Development Corp.*		30		1,266
Global Industries Ltd.*		171		1,185
James River Coal Co.*		46		1,165
USEC, Inc.*		193		1,162
Cloud Peak Energy, Inc.*		50		1,161
Contango Oil & Gas Co.*		20		1,159
Apco Oil and Gas International, Inc.		20		1,150
Penn Virginia Corp.		67		1,127
ATP Oil & Gas Corp.*		66		1,105
OYO Geospace Corp.*		11		1,090
W&T Offshore, Inc.		60		1,072
T-3 Energy Services, Inc. — Class 3*		25		996
Cal Dive International, Inc.*		162		919
Clean Energy Fuels Corp.*		66		913
Newpark Resources, Inc.*		147		905
Resolute Energy Corp.*		61		900
Knightsbridge Tankers Ltd.		40		891
Western Refining, Inc.*		84		889
Parker Drilling Co.*		192		877
Golar LNG Ltd.		56		841
Hornbeck Offshore Services, Inc.*		40		835
TransAtlantic Petroleum Ltd.*		242		806
Willbros Group, Inc.*		81		795
Tesco Corp.*		50		794
Pioneer Drilling Co.*		90		793
BPZ Resources, Inc.*		165		785
Gulfport Energy Corp.*		36		779
Rex Energy Corp.*		53		723
Goodrich Petroleum Corp.*		41		723
CVR Energy, Inc.*		47		713
Energy Partners Ltd.*		46		684
Hercules Offshore, Inc.*		196		678
Clayton Williams Energy, Inc.*		8		672
Magnum Hunter Resources Corp.*		93		670
Petroquest Energy, Inc.*		88		663
Basic Energy Services, Inc.*		40		659
Harvest Natural Resources, Inc.*		52		633
Crosstex Energy, Inc.		70		620
Teekay Tankers Ltd. — Class A		50		617
Vaalco Energy, Inc.*		84		601
Uranium Energy Corp.*		96		580
Matrix Service Co.*		44		536
Warren Resources, Inc.*		117		529
Houston American Energy Corp.		29		525
Venoco, Inc.*		28		517
Vantage Drilling Co.*		252		512
Gulf Island Fabrication, Inc.		18		507
Abraxas Petroleum Corp.*		110		503
Cheniere Energy, Inc.*		86		475

104   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
FX Energy, Inc.*		75	$	461
Allis-Chalmers Energy, Inc.*		64		454
Dawson Geophysical Co.*		14		447
Rentech, Inc.*		361		440
General Maritime Corp.		130		422
Georesources, Inc.*		19		422
Isramco, Inc.*		5		421
Endeavour International Corp.*		30		418
Panhandle Oil and Gas, Inc. — Class A		14		384
PHI, Inc.*		20		377
Approach Resources, Inc.*		16		370
DHT Holdings, Inc.		77		358
Green Plains Renewable Energy, Inc.*		29		327
Natural Gas Services Group, Inc.*		17		321
Callon Petroleum Co.*		54		320
Gastar Exploration Ltd.*		69		297
GMX Resources, Inc.*		53		293
L&L Energy, Inc.*		26		281
Delta Petroleum Corp.*		304		231
Syntroleum Corp.*		107		198
Seahawk Drilling, Inc.*		20		179
Delek US Holdings, Inc.		24		175
RAM Energy Resources, Inc.*		92		169
CAMAC Energy, Inc.*		83		165
Scorpio Tankers, Inc.*		16		162
Miller Petroleum, Inc.*		29		151
Evolution Petroleum Corp.*		19		124
Union Drilling, Inc.*		16		116
Global Geophysical Services, Inc.*		10		104
Alon USA Energy, Inc.		14		84
Hallador Energy Co.		7		73
Total Energy				119,966
MATERIALS - 0.6%
Hecla Mining Co.*		422		4,752
Solutia, Inc.*		202		4,662
WR Grace & Co.*		122		4,286
Coeur d’Alene Mines Corp.*		152		4,153
Rockwood Holdings, Inc.*		91		3,560
Thompson Creek Metals Company, Inc.*		234		3,444
Silgan Holdings, Inc.		91		3,259
Allied Nevada Gold Corp.*		118		3,105
Rock-Tenn Co. — Class A		56		3,021
Sensient Technologies Corp.		81		2,975
Olin Corp.		131		2,688
NewMarket Corp.		17		2,097
OM Group, Inc.*		54		2,080
Ferro Corp.*		140		2,050
Golden Star Resources Ltd.*		431		1,978
Louisiana-Pacific Corp.*		209		1,977
Minerals Technologies, Inc.		30		1,962
PolyOne Corp.*		155		1,936
Schweitzer-Mauduit International, Inc.		30		1,888
Globe Specialty Metals, Inc.		101		1,726
Worthington Industries, Inc.		93		1,711
Century Aluminum Co.*		106		1,646
Clearwater Paper Corp.*		20		1,566
HB Fuller Co.		76		1,559
Balchem Corp.		46		1,555
Arch Chemicals, Inc.		40		1,517
Westlake Chemical Corp.		34		1,478
Stillwater Mining Co.*		68		1,452
Georgia Gulf Corp.*		60		1,444
Kaiser Aluminum Corp.		28		1,402
Calgon Carbon Corp.*		91		1,376
Innophos Holdings, Inc.		38		1,371
Buckeye Technologies, Inc.		63		1,324
Texas Industries, Inc.		28		1,282
AMCOL International Corp.		41		1,271
RTI International Metals, Inc.*		47		1,268
US Gold Corp.*		154		1,243
Brush Engineered Materials, Inc.*		30		1,159
STR Holdings, Inc.*		54		1,080
A. Schulman, Inc.		47		1,076
Stepan Co.		14		1,068
Koppers Holdings, Inc.		29		1,038
PH Glatfelter Co.		84		1,031
Jaguar Mining, Inc.*		143		1,020
Deltic Timber Corp.		18		1,014
Boise, Inc.		120		952
Quaker Chemical Corp.		22		917
Horsehead Holding Corp.*		69		900
KapStone Paper and Packaging Corp.*		56		857
Haynes International, Inc.		20		837
Zep, Inc.		40		795
Graphic Packaging Holding Co.*		188		731
General Moly, Inc.*		112		726
LSB Industries, Inc.*		29		704
Wausau Paper Corp.		80		689
Kraton Performance Polymers, Inc.*		22		681
Myers Industries, Inc.		62		604
Omnova Solutions, Inc.*		72		602
Zoltek Companies, Inc.*		50		577
Olympic Steel, Inc.		20		574
AM Castle & Co.*		30		552
Capital Gold Corp.*		96		487
Spartech Corp.*		51		477
Headwaters, Inc.*		104		476
Graham Packaging Company, Inc.*		33		430
TPC Group, Inc.*		14		424
Senomyx, Inc.*		58		413

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   105

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Universal Stainless & Alloy*		12	$	375
Neenah Paper, Inc.		17		335
Noranda Aluminum Holding Corp.*		20		292
Hawkins, Inc.		6		266
AEP Industries, Inc.*		10		259
Metals USA Holdings Corp.*		17		259
American Vanguard Corp.		30		256
Landec Corp.*		40		239
US Energy Corp.*		39		237
KMG Chemicals, Inc.		10		166
NL Industries, Inc.		13		145
Verso Paper Corp.*		17		58
United States Lime & Minerals, Inc.*		1		42
Total Materials				107,884
UTILITIES - 0.3%
Nicor, Inc.		71		3,544
Piedmont Natural Gas Company, Inc.		120		3,355
IDACORP, Inc.		82		3,032
New Jersey Resources Corp.		70		3,018
Cleco Corp.		97		2,984
WGL Holdings, Inc.		82		2,933
South Jersey Industries, Inc.		53		2,799
Southwest Gas Corp.		74		2,714
Portland General Electric Co.		122		2,647
UIL Holdings Corp.		82		2,457
Unisource Energy Corp.		62		2,222
Avista Corp.		94		2,117
El Paso Electric Co.*		69		1,900
Black Hills Corp.		63		1,890
Northwest Natural Gas Co.		40		1,859
PNM Resources, Inc.		142		1,849
Allete, Inc.		47		1,751
NorthWestern Corp.		60		1,730
MGE Energy, Inc.		40		1,710
Empire District Electric Co.		74		1,643
Laclede Group, Inc.		41		1,498
Otter Tail Corp.		62		1,398
CH Energy Group, Inc.		28		1,369
California Water Service Group		35		1,304
American States Water Co.		28		965
Dynegy, Inc. — Class A*		170		955
Chesapeake Utilities Corp.		20		830
Central Vermont Public Service Corp.		25		547
Middlesex Water Co.		29		532
SJW Corp.		16		424
Connecticut Water Service, Inc.		14		390
Unitil Corp.		16		364
York Water Co.		20		346
Cadiz, Inc.*		20		249
Consolidated Water Company Ltd.		19		174
Artesian Resources Corp. — Class A		8		152
American DG Energy, Inc.*		30		83
Total Utilities				59,734
CONSUMER STAPLES - 0.3%
TreeHouse Foods, Inc.*		57		2,912
United Natural Foods, Inc.*		78		2,861
Ruddick Corp.		72		2,652
Casey’s General Stores, Inc.		60		2,551
Nu Skin Enterprises, Inc. — Class A		81		2,451
Diamond Foods, Inc.		40		2,127
Fresh Del Monte Produce, Inc.		74		1,846
Hain Celestial Group, Inc.*		67		1,813
Darling International, Inc.*		136		1,806
Universal Corp.		40		1,628
Sanderson Farms, Inc.		39		1,527
Lancaster Colony Corp.		26		1,487
Boston Beer Company, Inc. — Class A*		15		1,426
Tootsie Roll Industries, Inc.		42		1,217
WD-40 Co.		30		1,208
Vector Group Ltd.		68		1,178
Pricesmart, Inc.		30		1,141
B&G Foods, Inc. — Class A		82		1,126
Nash Finch Co.		24		1,020
Andersons, Inc.		28		1,018
Chiquita Brands International, Inc.*		71		995
Spectrum Brands Holdings, Inc.*		31		966
J&J Snack Foods Corp.		20		965
Snyders-Lance, Inc.		40		938
Rite Aid Corp.*		1,059		935
Elizabeth Arden, Inc.*		40		920
Central Garden and Pet Co. — Class A*		90		889
Weis Markets, Inc.		22		887
Prestige Brands Holdings, Inc.*		67		801
Pantry, Inc.*		40		794
Dole Food Company, Inc.*		56		757
Heckmann Corp.*		147		739
Spartan Stores, Inc.		40		678
Coca-Cola Bottling Company Consolidated		12		667
Winn-Dixie Stores, Inc.*		90		645
Alliance One International, Inc.*		147		623
Pilgrim’s Pride Corp.*		81		574
Medifast, Inc.*		18		520
Cal-Maine Foods, Inc.		16		505
Ingles Markets, Inc. — Class A		24		461
Smart Balance, Inc.*		102		442
Arden Group, Inc. — Class A		5		413
Calavo Growers, Inc.		17		392
Synutra International, Inc.*		28		377
Seneca Foods Corp. — Class A*		13		351
USANA Health Sciences, Inc.*		8		348

106   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Imperial Sugar Co.		25	$	334
Star Scientific, Inc.*		159		310
Inter Parfums, Inc.		16		302
National Beverage Corp.		22		289
Limoneira Co.		10		287
MGP Ingredients, Inc.		25		276
Nutraceutical International Corp.*		19		270
Alico, Inc.		11		262
Farmer Brothers Co.		13		231
Schiff Nutrition International, Inc.		24		218
Village Super Market, Inc. — Class A		6		198
Revlon, Inc. — Class A*		20		197
John B. Sanfilippo & Son, Inc.*		14		174
Griffin Land & Nurseries, Inc.		5		162
Female Health Co.		27		154
Oil-Dri Corporation of America		7		150
Nature’s Sunshine Products, Inc.*		14		126
Susser Holdings Corp.*		8		111
Lifeway Foods, Inc.*		10		96
Harbinger Group, Inc.*		10		62
Total Consumer Staples				56,786
TELECOMMUNICATION SERVICES - 0.1%
Syniverse Holdings, Inc.*		114		3,517
AboveNet, Inc.		40		2,338
General Communication, Inc. — Class A*		82		1,038
NTELOS Holdings Corp.		50		952
Cogent Communications Group, Inc.*		67		947
Cincinnati Bell, Inc.*		337		944
Consolidated Communications Holdings, Inc.		43		830
Alaska Communications Systems Group, Inc.		71		788
PAETEC Holding Corp.*		209		782
Atlantic Tele-Network, Inc.		19		728
Neutral Tandem, Inc.*		50		722
Shenandoah Telecommunications Co.		38		712
USA Mobility, Inc.		40		711
Premiere Global Services, Inc.*		101		687
Global Crossing Ltd.*		52		672
Cbeyond, Inc.*		37		565
IDT Corp. — Class B		20		513
Iridium Communications, Inc.*		60		495
Vonage Holdings Corp.*		172		385
FiberTower Corp.*		85		379
Hughes Communications, Inc.*		6		243
ICO Global Communications Holdings Ltd.*		156		234
Globalstar, Inc.*		122		177
Total Telecommunication Services				19,359
Total Common Stocks (Cost $886,491)				1,933,683
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		52		16
Total Consumer Discretionary				16
Total Warrant (Cost $—)				16
CLOSED-END FUND† - 0.0%
Kayne Anderson Energy Development Co. (Cost $42)		24		432
	Face
	Amount
FEDERAL AGENCY DISCOUNT NOTE†† - 28.9%
Federal Home Loan Bank2 0.16% due 03/23/11	$	5,000,000		4,998,905
Total Federal Agency Discount Note (Cost $4,998,200)				4,998,905
REPURCHASE AGREEMENTS††, 3 - 84.1%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/114		6,602,833		6,602,833
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		2,720,972		2,720,972
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		2,604,358		2,604,358
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		2,604,358		2,604,358
Total Repurchase Agreements (Cost $14,532,521)				14,532,521
Total Investments - 124.2% (Cost $20,417,254)			$	21,465,557
Liabilities, Less Cash & Other Assets — (24.2)%				(4,179,469	)
Total Net Assets — 100.0%			$	17,286,088

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   107

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
RUSSELL 2000® 1.5x STRATEGY FUND

			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
March 2011 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $5,316,920)		68	$	20,147
	Units
EQUITY INDEX SWAP AGREEMENTS††
Morgan Stanley Capital Services, Inc. January 2011 Russell 2000 Index Swap, Terminating 01/26/115 (Notional Value $430,472)		549	$	(4,550	)
Credit Suisse Capital, LLC January 2011 Russell 2000 Index Swap, Terminating 01/28/115 (Notional Value $5,645,033)		7,204		(51,672	)
Goldman Sachs International January 2011 Russell 2000 Index Swap, Terminating 01/27/115 (Notional Value $12,438,840)		15,873		(124,250	)
(Total Notional Value $18,514,345)			$	(180,472	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs, except as noted — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
†††	Value determined based on Level 3 inputs — See Note 7.
1	Illiquid security.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
5	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

108   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	6,933,036
Repurchase agreements, at value		14,532,521
Total investments		21,465,557
Segregated cash with broker		348,420
Receivables:
Securities sold		1,506
Dividends		2,126
Interest		44
Other		12,802
Total assets		21,830,455
Liabilities:
Unrealized depreciation on swap agreements		180,472
Payable for:
Swap settlement		78,121
Variation margin		37,400
Securities purchased		119
Fund shares redeemed		4,209,668
Management fees		15,045
Custodian fees		552
Transfer agent/maintenance fees		4,179
Investor service fees		4,179
Portfolio accounting fees		1,672
Other		12,960
Total liabilities		4,544,367
Net assets	$	17,286,088
Net assets consist of:
Paid in capital	$	24,562,765
Accumulated net investment loss		(772	)
Accumulated net realized loss on investments		(8,163,883	)
Net unrealized appreciation on investments		887,978
Net assets	$	17,286,088
Capital shares outstanding		567,724
Net asset value per share	$	30.45
Investments, at cost	$	5,884,733
Repurchase agreements, at cost		14,532,521
Total cost	$	20,417,254
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends (net of foreign withholding tax of $9)	$	78,170
Interest		11,375
Total investment income		89,545
Expenses:
Management fees		128,598
Transfer agent and administrative fees		35,722
Investor service fees		35,722
Portfolio accounting fees		14,289
Trustees’ fees*		1,702
Audit and outside service fees		15,966
Printing fees		13,139
Miscellaneous		2,852
Total expenses		247,990
Net investment loss		(158,445	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		349,558
Equity index swaps		2,067,040
Futures contracts		43,437
Net realized gain		2,460,035
Net change in unrealized appreciation (depreciation) on:
Investments		(246,070	)
Equity index swaps		(303,063	)
Futures contracts		(1,470	)
Net change in unrealized appreciation (depreciation)		(550,603	)
Net realized and unrealized gain		1,909,432
Net increase in net assets resulting from operations	$	1,750,987

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   109

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(158,445	)	$	(97,982	)
Net realized gain on investments		2,460,035			717,711
Net change in unrealized appreciation (depreciation) on investments		(550,603	)		1,048,557
Net increase in net assets resulting from operations		1,750,987			1,668,286
Distributions to shareholders		—			—
Capital Share Transactions:
Proceeds from sale of shares		192,625,276			221,255,826
Cost of shares redeemed		(187,677,270	)		(226,315,344	)
Net increase (decrease) from capital share transactions		4,948,006			(5,059,518	)
Net increase (decrease) in net assets		6,698,993			(3,391,232	)
Net assets:
Beginning of year		10,587,095			13,978,327
End of year	$	17,286,088		$	10,587,095
Accumulated net investment loss at end of year	$	(772	)	$	(2,724	)
Capital share activity:
Shares sold		7,843,412			12,705,572
Shares redeemed		(7,755,086	)		(13,069,897	)
Net increase (decrease) in shares		88,326			(364,325	)

110    |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	22.08		$	16.57		$	34.20		$	41.14		$	34.14
Income (loss) from investment operations:
Net investment income (loss)a		(.27	)		(.14	)		.01			.49			.19
Net gain (loss) on investments (realized and unrealized)		8.64			5.65			(17.58	)		(3.26	)		6.93
Total from investment operations		8.37			5.51			(17.57	)		(2.77	)		7.12
Less distributions from:
Net investment income		—			—			(.06	)		(.96	)		(.12	)
Net realized gains		—			—			—			(3.21	)		—
Total distributions		—			—			(.06	)		(4.17	)		(.12	)
Net asset value, end of period	$	30.45		$	22.08		$	16.57		$	34.20		$	41.14
Total Returnb		37.85	%		33.31	%		(51.36	%)		(6.74	%)		20.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,286		$	10,587		$	13,978		$	21,879		$	73,112
Ratios to average net assets:
Net investment income (loss)		(1.11	%)		(0.83	%)		0.05	%		1.16	%		0.49	%
Total expenses		1.74	%		1.74	%		1.68	%		1.66	%		1.64	%
Portfolio turnover rate		249	%		376	%		490	%		354	%		380	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report    |    111

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the Russell 2000 Index (the “underlying index”).

Inception: May 3, 2004

For the one-year period ended December 31, 2010, Inverse Russell 2000^® Strategy Fund maintained a daily correlation of over 99% to its benchmark of -100% of the daily price movement of the Russell 2000 Index. Inverse Russell 2000^® Strategy Fund returned -27.62% while the Russell 2000 Index returned 26.86% over the same time period.

The biggest performance contributors to the index during the period were Information Technology (6.46%), Industrials (4.61%) and Consumer Discretionary (4.44%). Telecommunication Services (0.14%), Utilities (0.59%) and Consumer Staples (0.65%) provided the least performance to the index during the year.

Riverbed Technology, Inc., VeriFone Systems, Inc. and TIBCO Software, Inc. were among the stocks which provided the most performance to the index during the year. Human Genome Sciences, Inc., Assured Guaranty Ltd. And E*TRADE Financial Corp. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
INVERSE RUSSELL 2000® STRATEGY FUND		-27.62	%		-10.88	%		-10.81	%
RUSSELL 2000 INDEX		26.86	%		4.49	%		6.43	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 2000 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as equity index swap agreements and futures contracts.

112   |   the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

INVERSE RUSSELL 2000^® STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTE†† - 17.7%
Federal Farm Credit Bank1 0.15% due 01/05/11	$	1,000,000	$	999,997
Total Federal Agency Discount Note (Cost $999,983)				999,997
REPURCHASE AGREEMENTS††,2 - 50.1%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/113		1,074,061		1,074,061
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		602,290		602,290
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		576,477		576,477
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		576,477		576,477
Total Repurchase Agreements (Cost $2,829,305)				2,829,305
Total Investments - 67.8% (Cost $3,829,288)			$	3,829,302
Cash & Other Assets, Less Liabilities — 32.2%				1,817,577
Total Net Assets — 100.0%			$	5,646,879

			Unrealized
	Contracts		Gain
FUTURES CONTRACTS SOLD SHORT†
March 2011 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $1,954,750)		25	$	6,748

	Units
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Morgan Stanley Capital Services, Inc. January 2011 Russell 2000 Index Swap, Terminating 01/26/114 (Notional Value $1,049,157)		1,339	$	10,868
Credit Suisse Capital, LLC January 2011 Russell 2000 Index Swap, Terminating 01/28/114 (Notional Value $2,555,880)		3,262		8,601
Goldman Sachs International January 2011 Russell 2000 Index Swap, Terminating 01/27/114 (Notional Value $109,006)		139		1,133
(Total Notional Value $3,714,043)			$	20,602

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
4	Total Return based on Russell 2000 Index +/- financing at a variable rate.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |    113

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	999,997
Repurchase agreements, at value		2,829,305
Total investments		3,829,302
Segregated cash with broker		345,530
Unrealized appreciation on swap agreements		20,602
Receivables:
Swap settlement		1,896
Variation margin		13,750
Fund shares sold		1,489,213
Interest		9
Other		10,530
Total assets		5,710,832
Liabilities:
Payable for:
Fund shares redeemed		48,741
Management fees		3,819
Custodian fees		140
Transfer agent/maintenance fees		1,061
Investor service fees		1,061
Portfolio accounting fees		424
Other		8,707
Total liabilities		63,953
Net Assets	$	5,646,879
Net assets consist of:
Paid in capital	$	20,860,371
Accumulated net investment loss		—
Accumulated net realized loss on investments		(15,240,856	)
Net unrealized appreciation on investments		27,364
Net assets	$	5,646,879
Capital shares outstanding		272,120
Net asset value per share	$	20.75
Investments, at cost	$	999,983
Repurchase agreements, at cost		2,829,305
Total cost	$	3,829,288
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Interest	$	14,247
Total investment income		14,247
Expenses:
Management fees		86,045
Transfer agent and administrative fees		23,901
Investor service fees		23,901
Portfolio accounting fees		9,560
Trustees’ fees*		1,204
Miscellaneous		20,469
Total expenses		165,080
Net investment loss		(150,833	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(31	)
Equity index swaps		(2,171,109	)
Futures contracts		(1,343,263	)
Net realized loss		(3,514,403	)
Net change in unrealized appreciation (depreciation) on:
Investments		14
Equity index swaps		146,490
Futures contracts		47,545
Net change in unrealized appreciation (depreciation)		194,049
Net realized and unrealized loss		(3,320,354	)
Net decrease in net assets resulting from operations	$	(3,471,187	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

114   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(150,833	)	$	(157,459	)
Net realized loss on investments		(3,514,403	)		(5,913,731	)
Net change in unrealized appreciation (depreciation) on investments		194,049			100,832
Net decrease in net assets resulting from operations		(3,471,187	)		(5,970,358	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		205,622,652			263,134,201
Cost of shares redeemed		(207,937,932	)		(253,508,341	)
Net increase (decrease) from capital share transactions		(2,315,280	)		9,625,860
Net increase (decrease) in net assets		(5,786,467	)		3,655,502
Net assets:
Beginning of year		11,433,346			7,777,844
End of year	$	5,646,879		$	11,433,346
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		7,976,108			7,526,813
Shares redeemed		(8,102,738	)		(7,310,215	)
Net increase (decrease) in shares		(126,630	)		216,598

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   115

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	28.67		$	42.70		$	34.66		$	34.61		$	40.60
Income (loss) from investment operations:
Net investment income (loss)a		(.41	)		(.56	)		.08			1.10			1.30
Net gain (loss) on investments (realized and unrealized)		(7.51	)		(13.47	)		8.54			.76			(6.16	)
Total from investment operations		(7.92	)		(14.03	)		8.62			1.86			(4.86	)
Less distributions from:
Net investment income		—			—			(.58	)		(1.81	)		(1.13	)
Total distributions		—			—			(.58	)		(1.81	)		(1.13	)
Net asset value, end of period	$	20.75		$	28.67		$	42.70		$	34.66		$	34.61
Total Returnb		(27.62	%)		(32.86	%)		24.69	%		5.37	%		(11.95	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,647		$	11,433		$	7,778		$	11,535		$	12,237
Ratios to average net assets:
Net investment income (loss)		(1.58	%)		(1.60	%)		0.22	%		3.19	%		3.48	%
Total expenses		1.73	%		1.73	%		1.69	%		1.67	%		1.64	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

116   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)	December 31, 2010
DOW 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the Dow Jones Industrial Average^SM Index (the “underlying index”).

Inception: May 3, 2004

For the one-year period ended December 31, 2010, Dow 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of 200% of the daily price movement of the Dow Jones Industrial Average Index. Dow 2x Strategy Fund returned 24.58% while the Dow Jones Industrial Average Index returned 14.06% over the same time period.

Industrials (5.41%), Consumer Discretionary (2.25%) and Consumer Staples (1.83%) provided the most performance to the index during the year. Health Care (0.05%), Information Technology (0.10%), Telecommunication Services (0.73%) and Financials (0.75%) provided the least performance to the index during the year.

Caterpillar, Inc., E.I. DuPont de Nemours & Co. and McDonald’s Corp. were among the stocks which provided the most performance to the index during the year. Hewlett-Packard Co., Cisco Systems, Inc. and Microsoft Corp. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
DOW 2x STRATEGY FUND		24.58	%		-1.62	%		-0.56	%
DOW JONES INDUSTRIAL AVERAGE INDEX		14.06	%		4.30	%		4.40	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Dow Jones Industrial Average Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
International Business Machines Corp.	4.3	%
Caterpillar, Inc.	2.8	%
Chevron Corp.	2.7	%
3M Co.	2.6	%
United Technologies Corp.	2.3	%
McDonald’s Corp.	2.3	%
Exxon Mobil Corp.	2.2	%
Coca-Cola Co.	1.9	%
Boeing Co.	1.9	%
Procter & Gamble Co.	1.9	%
Top Ten Total	24.9	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   117

SCHEDULE OF INVESTMENTS	December 31, 2010
DOW 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 45.2%
INDUSTRIALS - 10.1%
Caterpillar, Inc.		4,330	$	405,548
3M Co.		4,330		373,679
United Technologies Corp.		4,322		340,228
Boeing Co.		4,330		282,576
General Electric Co.		4,330		79,195
Total Industrials				1,481,226
INFORMATION TECHNOLOGY - 7.6%
International Business
Machines Corp.		4,330		635,471
Hewlett-Packard Co.		4,330		182,293
Microsoft Corp.		4,330		120,893
Intel Corp.		4,329		91,039
Cisco Systems, Inc.*		4,330		87,596
Total Information Technology				1,117,292
CONSUMER STAPLES - 6.4%
Coca-Cola Co.		4,330		284,784
Procter & Gamble Co.		4,328		278,420
Wal-Mart Stores, Inc.		4,330		233,517
Kraft Foods, Inc. — Class A		4,330		136,439
Total Consumer Staples				933,160
ENERGY - 4.9%
Chevron Corp.		4,330		395,112
Exxon Mobil Corp.		4,330		316,610
Total Energy				711,722
FINANCIALS - 4.6%
Travelers Companies, Inc.		4,330		241,224
American Express Co.		4,330		185,844
JPMorgan Chase & Co.		4,329		183,636
Bank of America Corp.		4,460		59,497
Total Financials				670,201
CONSUMER DISCRETIONARY - 4.4%
McDonald’s Corp.		4,332		332,524
Walt Disney Co.		4,330		162,418
Home Depot, Inc.		4,330		151,810
Total Consumer Discretionary				646,752
HEALTH CARE - 3.4%
Johnson & Johnson		4,329		267,749
Merck & Company, Inc.		4,330		156,053
Pfizer, Inc.		4,330		75,818
Total Health Care				499,620
MATERIALS - 1.9%
E. I. du Pont de Nemours & Co.		4,330		215,980
Alcoa, Inc.		4,320		66,485
Total Materials				282,465
TELECOMMUNICATION SERVICES - 1.9%
Verizon Communications, Inc.		4,316		154,427
AT&T, Inc.		4,330		127,215
Total Telecommunication Services				281,642
Total Common Stocks (Cost $4,748,161)				6,624,080

	Face
	Amount
REPURCHASE AGREEMENTS††,1 - 37.2%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/112	$	3,001,187		3,001,187
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		836,698		836,698
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		800,840		800,840
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		800,840		800,840
Total Repurchase Agreements (Cost $5,439,565)				5,439,565
Total Investments - 82.4% (Cost $10,187,726)			$	12,063,645
Cash & Other Assets, Less Liabilities — 17.6%				2,578,678
Total Net Assets — 100.0%			$	14,642,323

			Unrealized
	Contracts		Gain
FUTURES CONTRACTS PURCHASED†
March 2011 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Value of Contracts $12,339,240)		214	$	28,965

	Units
EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse Capital, LLC January 2011 Dow Jones Industrial Average Index Swap, Terminating 01/28/113 (Notional Value $4,156,145)		359	$	9,571
Morgan Stanley Capital Services, Inc. January 2011 Dow Jones Industrial Average Index Swap, Terminating 01/26/113 (Notional Value $3,268,540)		282		6,649
Goldman Sachs International January 2011 Dow Jones Industrial Average Index Swap, Terminating 01/27/113 (Notional Value $2,731,934)		236		3,967
(Total Notional Value $10,156,619)			$	20,187

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
2	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
3	Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.

118   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

DOW 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	6,624,080
Repurchase agreements, at value		5,439,565
Total investments		12,063,645
Segregated cash with broker		550,944
Unrealized appreciation on swap agreements		20,187
Receivables:
Swap settlement		9,487
Variation margin		13,303
Fund shares sold		2,007,871
Dividends		6,549
Interest		16
Total assets		14,672,002
Liabilities:
Payable for:
Management fees		9,515
Custodian fees		352
Transfer agent/maintenance fees		2,643
Investor service fees		2,643
Portfolio accounting fees		1,057
Licensing fees		3,501
Other		9,968
Total liabilities		29,679
Net assets	$	14,642,323
Net assets consist of:
Paid in capital	$	39,684,701
Accumulated net investment loss		—
Accumulated net realized loss on investments		(26,967,449	)
Net unrealized appreciation on investments		1,925,071
Net assets	$	14,642,323
Capital shares outstanding		179,094
Net asset value per share	$	81.76
Investments, at cost	$	4,748,161
Repurchase agreements, at cost		5,439,565
Total cost	$	10,187,726
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends	$	194,538
Interest		6,057
Total investment income		200,595
Expenses:
Management fees		107,390
Transfer agent and administrative fees		29,830
Investor service fees		29,830
Portfolio accounting fees		11,932
Trustees’ fees*		1,537
Miscellaneous		26,408
Total expenses		206,927
Net investment loss		(6,332	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		854,794
Equity index swaps		1,709,273
Futures contracts		502,141
Net realized gain		3,066,208
Net change in unrealized appreciation (depreciation) on:
Investments		(55,387	)
Equity index swaps		(124,553	)
Futures contracts		(28,095	)
Net change in unrealized appreciation (depreciation)		(208,035	)
Net realized and unrealized gain		2,858,173
Net increase in net assets resulting from operations	$	2,851,841

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   119

DOW 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(6,332	)	$	74,125
Net realized gain (loss) on investments		3,066,208			(4,695,907	)
Net change in unrealized appreciation (depreciation) on investments		(208,035	)		2,859,385
Net increase (decrease) in net assets resulting from operations		2,851,841			(1,762,397	)
Distributions to shareholders from:
Net investment income		(74,124	)		—
Total distributions to shareholders		(74,124	)		—
Capital share transactions:
Proceeds from sale of shares		95,323,862			117,150,942
Distributions reinvested		74,124			—
Cost of shares redeemed		(103,392,691	)		(131,877,098	)
Net decrease from capital share transactions		(7,994,705	)		(14,726,156	)
Net decrease in net assets		(5,216,988	)		(16,488,553	)
Net assets:
Beginning of year		19,859,311			36,347,864
End of year	$	14,642,323		$	19,859,311
Accumulated net investment loss at end of year	$	—		$	74,124
Capital share activity:
Shares sold		1,369,488			2,497,178	†
Shares issued from reinvestment of distributions		972			—
Shares redeemed		(1,492,091	)		(2,949,955	)†
Net decrease in shares		(121,631	)		(452,777	)†

^† Share amounts for the period January 1, 2009 through April 19, 2009 have been restated to reflect a 1:5 reverse stock split effective April 20, 2009.

120   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

DOW 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009c			2008c			2007c			2006c
Per Share Data
Net asset value, beginning of period	$	66.04		$	48.25		$	128.50		$	134.45		$	115.50
Income (loss) from investment operations:
Net investment income (loss)a		(.04	)		.22			.75			1.80			2.00
Net gain (loss) on investments (realized and unrealized)		16.25			17.57			(80.11	)		9.65			32.90
Total from investment operations		16.21			17.79			(79.36	)		11.45			34.90
Less distributions from:
Net investment income		(.49	)		—			(.90	)		(1.50	)		(.75	)
Net realized gains		—			—			—			(15.90	)		(15.20	)
Total distributions		(.49	)		—			(.90	)		(17.40	)		(15.95	)
Net asset value, end of period	$	81.76		$	66.04		$	48.25		$	128.50		$	134.45
Total Returnb		24.58	%		36.90	%		(61.71	%)		8.15	%		30.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,642		$	19,859		$	36,348		$	44,825		$	45,365
Ratios to average net assets:
Net investment income (loss)		(0.05	%)		0.48	%		0.90	%		1.22	%		1.52	%
Total expenses		1.73	%		1.75	%		1.68	%		1.63	%		1.65	%
Portfolio turnover rate		129	%		80	%		78	%		105	%		224	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Per share amounts for the period December 31, 2005 — April 19, 2009 have been restated to reflect a 1:5 reverse stock split effective April 20, 2009.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   121

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INVERSE DOW 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the Dow Jones Industrial Average Index (the “underlying index”).

Inception: May 3, 2004

For the one-year period ended December 31, 2010, Inverse Dow 2x Strategy Fund maintained a daily correlation of over 99% to its benchmark of -200% of the daily price movement of the Dow Jones Industrial Average Index. Inverse Dow 2x Strategy Fund returned -30.29% while the Dow Jones Industrial Average Index returned 14.06% over the same time period.

Industrials (5.41%), Consumer Discretionary (2.25%) and Consumer Staples (1.83%) provided the most performance to the index during the year. Health Care (0.05%), Information Technology (0.10%), Telecommunication Services (0.73%) and Financials (0.75%) provided the least performance to the index during the year.

Caterpillar, Inc., E.I. DuPont de Nemours & Co. and McDonald’s Corp. were among the stocks which provided the most performance to the index during the year. Hewlett-Packard Co., Cisco Systems, Inc. and Microsoft Corp. were among the stocks which provided the least performance to the index during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
INVERSE DOW 2x STRATEGY FUND		-30.29	%		-15.07	%		-12.93	%
DOW JONES INDUSTRIAL AVERAGE INDEX		14.06	%		4.30	%		4.40	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Dow Jones Industrial Average Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as equity index swap agreements and futures contracts.

122    |    the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS	December 31, 2010
INVERSE DOW 2x STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 33.2%
Freddie Mac1 0.05% due 01/03/11	$	1,000,000	$	999,997
Federal Farm Credit Bank2 0.15% due 01/05/11		1,000,000		999,998
Federal Home Loan Bank2 0.07% due 01/05/11		1,000,000		999,992
Fannie Mae1 0.09% due 01/05/11		1,000,000		999,990
Farmer Mac2 0.16% due 01/12/11		1,000,000		999,987
Total Federal Agency Discount Notes (Cost $4,999,915)				4,999,964
REPURCHASE AGREEMENTS††,3 - 97.8%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/114		8,175,479		8,175,479
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		2,241,799		2,241,799
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		2,145,723		2,145,723
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		2,145,723		2,145,723
Total Repurchase Agreements (Cost $14,708,724)				14,708,724
Total Investments - 131.0% (Cost $19,708,639)			$	19,708,688
Liabilities, Less Cash & Other Assets – (31.0)%				(4,664,163	)
Total Net Assets – 100.0%			$	15,044,525

			Unrealized
	Contracts		Loss
FUTURES CONTRACTS SOLD SHORT†
March 2011 Dow Jones Industrial Average Index (Aggregate Value of Contracts $115,320)		2	$	(173	)

	Units
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Morgan Stanley Capital Services, Inc. January 2011 Dow Jones Industrial Average Index Swap, Terminating 01/26/115 (Notional Value $643,402)		56	$	(1,378	)
Goldman Sachs International January 2011 Dow Jones Industrial Average Index Swap, Terminating 01/27/115 (Notional Value $8,703,187)		752		(18,370	)
Credit Suisse Capital, LLC January 2011 Dow Jones Industrial Average Index Swap, Terminating 01/28/115 (Notional Value $20,684,286)		1,787		(40,011	)
(Total Notional Value $30,030,875)			$	(59,759	)

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Repurchase Agreements — See Note 6.
4	All or a portion of this security is pledged as equity index swap collateral at December 31, 2010.
5	Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     123

INVERSE DOW 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	4,999,964
Repurchase agreements, at value		14,708,724
Total investments		19,708,688
Segregated cash with broker		222,153
Receivables:
Variation margin		199
Interest		44
Total assets		19,931,084
Liabilities:
Unrealized depreciation on swap agreements		59,759
Payable for:
Swap settlement		19,599
Fund shares redeemed		4,758,350
Management fees		13,962
Custodian fees		512
Transfer agent/maintenance fees		3,878
Investor service fees		3,878
Portfolio accounting fees		1,551
Licensing fees		4,389
Other		20,681
Total liabilities		4,886,559
Net assets	$	15,044,525
Net assets consist of:
Paid in capital	$	37,657,288
Accumulated net investment loss		—
Accumulated net realized loss on investments		(22,552,880	)
Net unrealized depreciation on investments		(59,883	)
Net assets	$	15,044,525
Capital shares outstanding		1,094,882
Net asset value per share	$	13.74
Investments, at cost	$	4,999,915
Repurchase agreements, at cost		14,708,724
Total cost	$	19,708,639

STATEMENT OF OPERTIONS
For the Year Ended December 31, 2010

Investment Income:
Interest	$	25,015
Total investment income		25,015
Expenses:
Management fees		156,064
Transfer agent and administrative fees		43,351
Investor service fees		43,351
Portfolio accounting fees		17,340
Trustees’ fees*		1,988
Miscellaneous		38,871
Total expenses		300,965
Net investment loss		(275,950	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Equity index swaps		(5,111,762	)
Futures contracts		(878,617	)
Net realized loss		(5,990,379	)
Net change in unrealized appreciation (depreciation) on:
Investment securities		49
Equity index swaps		(149,724	)
Futures contracts		(29,198	)
Net change in unrealized appreciation (depreciation)		(178,873	)
Net realized and unrealized loss		(6,169,252	)
Net decrease in net assets resulting from operations	$	(6,445,202	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

124    |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE DOW 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(275,950	)	$	(369,493	)
Net realized loss on investments		(5,990,379	)		(16,221,092	)
Net change in unrealized appreciation (depreciation) on investments		(178,873	)		377,962
Net decrease in net assets resulting from operations		(6,445,202	)		(16,212,623	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		265,338,764			551,385,484
Cost of shares redeemed		(261,870,045	)		(528,855,256	)
Net increase from capital share transactions		3,468,719			22,530,228
Net increase (decrease) in net assets		(2,976,483	)		6,317,605
Net assets:
Beginning of year		18,021,008			11,703,403
End of year	$	15,044,525		$	18,021,008
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		15,495,577			18,095,669
Shares redeemed		(15,315,106	)		(17,509,886	)
Net increase in shares		180,471			585,783

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |     125

INVERSE DOW 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	19.71		$	35.61		$	28.79		$	33.34		$	43.20
Income (loss) from investment operations:
Net investment income (loss)a		(.27	)		(.47	)		(.01	)		1.02			1.35
Net gain (loss) on investments (realized and unrealized)		(5.70	)		(15.43	)		18.12			(4.06	)		(10.75	)
Total from investment operations		(5.97	)		(15.90	)		18.11			(3.04	)		(9.40	)
Less distributions:
Net investment income		—			—			(.18	)		(1.51	)		(.46	)
Net realized gains		—			—			(11.11	)		—			—
Total distributions		—			—			(11.29	)		(1.51	)		(.46	)
Net asset value, end of period	$	13.74		$	19.71		$	35.61		$	28.79		$	33.34
Total Returnb		(30.29	%)		(44.65	%)		60.84	%		(8.99	%)		(21.77	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,045		$	18,021		$	11,703		$	11,885		$	17,053
Ratios to average net assets:
Net investment income (loss)		(1.59	%)		(1.61	%)		(0.03	%)		3.36	%		3.61	%
Total expenses		1.74	%		1.74	%		1.69	%		1.66	%		1.64	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

126     |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

S&P 500 PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a benchmark for large-cap growth securities. The Fund’s current benchmark is the S&P 500 Pure Growth Index (the “underlying index”).

Inception: May 3, 2004

For the year ended December 31, 2010, S&P 500 Pure Growth Fund returned 25.03%, compared with 27.67% for the S&P 500 Pure Growth Index.

The large-cap growth stocks that comprise the Index outperformed their large-cap value stock counterparts. The Information Technology sector was the biggest contributor to returns, adding 8.88% to the index performance for the year, followed by the Consumer Discretionary sector, which added 8.54%, and Energy, which added 3.35%. Telecommunication Services contributed the least to return, 0.05%.

The stocks contributing most to performance in the index were priceline.com, Inc., Salesforce.com, Inc. and Akamai Technologies, Inc. Those detracting the most from performance in the index were Western Digital Corp., Diamond Offshore Drilling, Inc. and Southwestern Energy Co.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
S&P 500 PURE GROWTH FUND		25.03	%		4.14	%		4.01	%
S&P 500 PURE GROWTH INDEX		27.67	%		6.12	%		7.36	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Pure Growth Index is and unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Tenet Healthcare Corp.	1.7	%
Cognizant Technology Solutions Corp. — Class A	1.7	%
Apple, Inc.	1.6	%
Amazon.com, Inc.	1.6	%
Priceline.com, Inc.	1.6	%
F5 Networks, Inc.	1.5	%
Red Hat, Inc.	1.5	%
Western Digital Corp.	1.5	%
NetFlix, Inc.	1.5	%
NetApp, Inc.	1.5	%
Top Ten Total	15.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   127

SCHEDULE OF INVESTMENTS	December 31, 2010
S&P 500 PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
INFORMATION TECHNOLOGY - 30.6%
Cognizant Technology Solutions Corp. — Class A*		11,303	$	828,397
Apple, Inc.*		2,535		817,690
F5 Networks, Inc.*		5,750		748,420
Red Hat, Inc.*		16,311		744,597
Western Digital Corp.*		21,890		742,071
NetApp, Inc.*		13,224		726,791
Salesforce.com, Inc.*		5,214		688,248
Akamai Technologies, Inc.*		14,621		687,918
Micron Technology, Inc.*		67,360		540,227
Juniper Networks, Inc.*		14,188		523,821
eBay, Inc.*		17,846		496,654
Google, Inc. — Class A*		797		473,394
Broadcom Corp. — Class A		10,364		451,352
Citrix Systems, Inc.*		6,342		433,856
SanDisk Corp.*		8,296		413,639
Teradata Corp.*		9,982		410,859
Visa, Inc. — Class A		5,610		394,832
Oracle Corp.		12,350		386,555
JDS Uniphase Corp.*		26,623		385,501
Mastercard, Inc. — Class A		1,720		385,469
McAfee, Inc.*		8,021		371,453
Intuit, Inc.*		7,288		359,298
EMC Corp.*		15,109		345,996
BMC Software, Inc.*		6,084		286,800
FLIR Systems, Inc.*		9,408		279,888
Advanced Micro Devices, Inc.*		34,070		278,693
Analog Devices, Inc.		6,656		250,732
Amphenol Corp. — Class A		4,682		247,116
Linear Technology Corp.		7,021		242,856
Altera Corp.		6,669		237,283
Symantec Corp.*		12,547		210,037
International Business Machines Corp.		1,335		195,925
Microsoft Corp.		6,357		177,487
QLogic Corp.*		9,671		164,600
Xilinx, Inc.		5,454		158,057
Total Information Technology				15,086,512
CONSUMER DISCRETIONARY - 28.6%
Amazon.com, Inc.*		4,489		808,020
Priceline.com, Inc.*		1,957		781,919
NetFlix, Inc.*		4,180		734,426
Coach, Inc.		13,121		725,723
Discovery Communications, Inc. — Class A*		15,909		663,405
Expedia, Inc.		25,250		633,522
AutoZone, Inc.*		2,225		606,513
O’Reilly Automotive, Inc.*		9,004		544,022
Wynn Resorts Ltd.		4,942		513,177
Ross Stores, Inc.		7,840		495,880
Starbucks Corp.		15,407		495,027
Nordstrom, Inc.		11,641		493,346
Wyndham Worldwide Corp.		14,660		439,214
DIRECTV — Class A*		10,920		436,036
Urban Outfitters, Inc.*		11,959		428,252
Tiffany & Co.		6,772		421,692
Darden Restaurants, Inc.		8,715		404,725
Hasbro, Inc.		8,216		387,631
Limited Brands, Inc.		12,250		376,443
CarMax, Inc.*		11,499		366,588
Cablevision Systems Corp. — Class A		10,530		356,335
Polo Ralph Lauren Corp. — Class A		3,109		344,850
Bed Bath & Beyond, Inc.*		6,480		318,492
DeVry, Inc.		6,460		309,951
Comcast Corp. — Class A		13,876		304,856
TJX Companies, Inc.		6,336		281,255
Yum! Brands, Inc.		5,347		262,270
Apollo Group, Inc. — Class A*		6,068		239,625
Family Dollar Stores, Inc.		4,600		228,666
Starwood Hotels & Resorts Worldwide, Inc.		3,616		219,780
Interpublic Group of Companies, Inc.*		18,580		197,320
Scripps Networks Interactive, Inc. — Class A		2,810		145,417
NIKE, Inc. — Class B		1,660		141,797
Total Consumer Discretionary				14,106,175
HEALTH CARE - 15.9%
Tenet Healthcare Corp.*		124,683		834,129
CIGNA Corp.		15,386		564,051
Life Technologies Corp.*		8,636		479,298
Intuitive Surgical, Inc.*		1,857		478,642
Watson Pharmaceuticals, Inc.*		9,235		476,988
Mylan, Inc.*		21,710		458,732
Biogen Idec, Inc.*		6,248		418,928
Medco Health Solutions, Inc.*		6,045		370,377
Express Scripts, Inc. — Class A*		6,603		356,892
Allergan, Inc.		4,987		342,457
Hospira, Inc.*		6,048		336,813
Gilead Sciences, Inc.*		9,263		335,691
Celgene Corp.*		5,543		327,813
Cerner Corp.*		3,215		304,589
St. Jude Medical, Inc.*		6,860		293,265
Laboratory Corporation of America Holdings*		3,217		282,839
Varian Medical Systems, Inc.*		3,924		271,855
Waters Corp.*		2,998		232,975
Patterson Companies, Inc.		7,110		217,779
Agilent Technologies, Inc.*		3,935		163,027
Eli Lilly & Co.		4,490		157,330
Genzyme Corp.*		2,149		153,009
Total Health Care				7,857,479

128   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

S&P 500 PURE GROWTH FUND December 31, 2010

	Shares		Value
ENERGY - 7.0%
FMC Technologies, Inc.*		5,843	$	519,501
National Oilwell Varco, Inc.		7,699		517,758
Massey Energy Co.		9,129		489,771
Cameron International Corp.*		8,782		445,511
Pioneer Natural Resources Co.		5,016		435,489
Diamond Offshore Drilling, Inc.		4,860		324,988
Peabody Energy Corp.		4,356		278,697
Southwestern Energy Co.*		6,604		247,188
Consol Energy, Inc.		3,709		180,776
Total Energy				3,439,679
INDUSTRIALS - 5.6%
Flowserve Corp.		3,877		462,216
Cummins, Inc.		3,088		339,711
First Solar, Inc.*		2,487		323,658
Goodrich Corp.		3,509		309,038
Stericycle, Inc.*		3,643		294,792
Ingersoll-Rand plc		5,702		268,507
Deere & Co.		2,782		231,045
WW Grainger, Inc.		1,574		217,385
Rockwell Automation, Inc.		2,237		160,415
Precision Castparts Corp.		1,028		143,108
Total Industrials				2,749,875
MATERIALS - 4.6%
CF Industries Holdings, Inc.		4,475		604,796
Freeport-McMoRan Copper & Gold, Inc. — Class B		4,593		551,573
Newmont Mining Co.		5,082		312,187
FMC Corp.		2,900		231,681
Ball Corp.		2,950		200,748
International Flavors & Fragrances, Inc.		3,532		196,344
Sigma-Aldrich Corp.		2,605		173,389
Total Materials				2,270,718
CONSUMER STAPLES - 3.3%
Whole Foods Market, Inc.		10,076		509,745
Coca-Cola Enterprises, Inc.		15,620		390,968
Estee Lauder Companies, Inc. — Class A		4,250		342,975
Dr Pepper Snapple Group, Inc.		6,868		241,479
Coca-Cola Co.		2,270		149,298
Total Consumer Staples				1,634,465
FINANCIALS - 2.7%
Ventas, Inc.		8,706		456,891
IntercontinentalExchange, Inc.*		3,289		391,884
Ameriprise Financial, Inc.		4,793		275,837
CB Richard Ellis Group, Inc. — Class A*		10,610		217,293
Total Financials				1,341,905
TELECOMMUNICATION SERVICES - 1.2%
American Tower Corp. — Class A*		6,037		311,750
MetroPCS Communications, Inc.*		20,065		253,421
Total Telecommunication Services				565,171
Total Common Stocks (Cost $39,502,956)				49,051,979
Total Investments - 99.5% (Cost $39,502,956)			$	49,051,979
Cash & Other Assets, Less Liabilities - 0.5%				249,211
Total Net Assets - 100.0%			$	49,301,190

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 7. plc — Public Limited Company

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   129

S&P 500 PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	49,051,979
Total investments		49,051,979
Receivables:
Securities sold		5,452,731
Dividends		11,006
Total assets		54,515,716
Liabilities:
Payable for:
Line of credit		607,317
Fund shares redeemed		4,521,707
Management fees		33,551
Custodian fees		1,489
Transfer agent/maintenance fees		11,183
Investor service fees		11,183
Portfolio accounting fees		4,473
Other		23,623
Total liabilities		5,214,526
Net assets	$	49,301,190
Net assets consist of:
Paid in capital	$	45,258,238
Accumulated net investment loss		—
Accumulated net realized loss on investments		(5,506,071	)
Net unrealized appreciation on investments		9,549,023
Net assets	$	49,301,190
Capital shares outstanding		1,625,721
Net asset value per share	$	30.33
Investments, at cost	$	39,502,956
Total cost	$	39,502,956

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends	$	241,457
Interest		260
Total investment income		241,717
Expenses:
Management fees		226,170
Transfer agent and administrative fees		75,390
Investor service fees		75,390
Portfolio accounting fees		30,156
Trustees’ fees*		3,361
Audit and outside service fees		37,380
Printing fees		29,633
Miscellaneous		(4,338	)
Total expenses		473,142
Net investment loss		(231,425	)
Net Realized And Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,033,781
Net realized gain		3,033,781
Net change in unrealized appreciation (depreciation) on:
Investments		3,932,349
Net change in unrealized appreciation (depreciation)		3,932,349
Net realized and unrealized gain		6,966,130
Net increase in net assets resulting from operations	$	6,734,705

*      Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

130   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P 500 PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(231,425	)	$	(109,065	)
Net realized gain on investments		3,033,781			3,936,220
Net change in unrealized appreciation (depreciation) on investments		3,932,349			4,451,465
Net increase in net assets resulting from operations		6,734,705			8,278,620
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		116,171,404			111,506,565
Cost of shares redeemed		(108,085,568	)		(98,511,301	)
Net increase from capital share transactions		8,085,836			12,995,264
Net increase in net assets		14,820,541			21,273,884
Net assets:
Beginning of year		34,480,649			13,206,765
End of year	$	49,301,190		$	34,480,649
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		4,426,580			5,918,829
Shares redeemed		(4,222,735	)		(5,298,909	)
Net increase in shares		203,845			619,920

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   131

S&P 500 PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	24.25		$	16.47		$	27.36		$	26.68		$	25.69
Income (loss) from investment operations:
Net investment lossa		(.20	)		(.10	)		(.09	)		(.16	)		(.17	)
Net gain (loss) on investments (realized and unrealized)		6.28			7.88			(10.80	)		1.46			1.56
Total from investment operations		6.08			7.78			(10.89	)		1.30			1.39
Less distributions from:
Net realized gains		—			—			—			(.62	)		(.40	)
Total distributions		—			—			—			(.62	)		(.40	)
Net asset value, end of period	$	30.33		$	24.25		$	16.47		$	27.36		$	26.68
Total Returnb		25.03	%		47.24	%		(39.80	%)		4.87	%		5.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	49,301		$	34,481		$	13,207		$	36,275		$	23,568
Ratios to average net assets:
Net investment loss		(0.77	%)		(0.53	%)		(0.40	%)		(0.57	%)		(0.66	%)
Total expenses		1.57	%		1.55	%		1.51	%		1.48	%		1.49	%
Portfolio turnover rate		356	%		497	%		360	%		521	%		612	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

132   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

S&P 500 PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a benchmark for large-cap value securities. The Fund’s current benchmark is the S&P 500 Pure Value Index (the “underlying index”).

Inception: May 3, 2004

For the year ended December 31, 2010, S&P 500 Pure Value Fund returned 20.32%, compared with 23.08% for the S&P 500 Pure Value Index.

The large-cap value stocks that comprise the index underperformed their large-cap growth stock counterparts, reflecting strong performance from the Financial, Energy and Utilities sectors, which contributed 8.01%, 4.21% and 3.19% to return, respectively. The weakest-performing sector was Materials, contributing 0.33% to return.

The strongest contributors to index performance for the year included Huntington Bancshares, Inc., Sunoco, Inc. and Zions Bankcorporation. Dean Foods Co., Sears Holdings Corp. and Goodyear Tire & Rubber Co. were among the stocks which added the least to index performance during the year.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
S&P 500 PURE VALUE FUND		20.32	%		0.80	%		3.02	%
S&P 500 PURE VALUE INDEX		23.08	%		2.85	%		7.12	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Pure Value Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
SUPERVALU, Inc.	2.6	%
Constellation Energy Group, Inc.	2.2	%
Dean Foods Co.	2.2	%
Sears Holdings Corp.	2.0	%
Valero Energy Corp.	1.9	%
Tesoro Corp.	1.8	%
Coventry Health Care, Inc.	1.8	%
NRG Energy, Inc.	1.8	%
Tyson Foods, Inc. — Class A	1.7	%
Hartford Financial Services Group, Inc.	1.7	%
Top Ten Total	19.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   133

SCHEDULE OF INVESTMENTS	December 31, 2010
S&P 500 PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
FINANCIALS - 26.2%
Hartford Financial Services Group, Inc.		18,496	$	489,959
Assurant, Inc.		10,991		423,373
Bank of America Corp.		31,279		417,262
Allstate Corp.		11,495		366,461
Unum Group		14,581		353,152
Capital One Financial Corp.		8,062		343,119
Prudential Financial, Inc.		5,601		328,835
Genworth Financial, Inc. — Class A*		24,267		318,868
XL Group plc — Class A		13,784		300,767
Lincoln National Corp.		9,974		277,377
Fifth Third Bancorp		15,009		220,332
NASDAQ OMX Group, Inc.*		8,948		212,157
ACE Ltd.		3,404		211,899
Principal Financial Group, Inc.		6,496		211,510
Citigroup, Inc.*		44,670		211,289
JPMorgan Chase & Co.		4,971		210,870
Travelers Companies, Inc.		3,639		202,729
Cincinnati Financial Corp.		6,379		202,150
Loews Corp.		4,828		187,857
Regions Financial Corp.		25,352		177,464
BB&T Corp.		6,564		172,568
Legg Mason, Inc.		4,464		161,909
PNC Financial Services Group, Inc.		2,633		159,876
SunTrust Banks, Inc.		5,417		159,856
Morgan Stanley		5,688		154,770
People’s United Financial, Inc.		10,879		152,415
MetLife, Inc.		3,208		142,563
SLM Corp.*		11,153		140,416
Chubb Corp.		2,354		140,393
Weyerhaeuser Co.		7,107		134,535
Goldman Sachs Group, Inc.		774		130,156
NYSE Euronext		4,322		129,574
Discover Financial Services		5,980		110,809
Torchmark Corp.		1,711		102,215
Total Financials				7,659,485
UTILITIES - 16.9%
Constellation Energy Group, Inc.		21,449		656,983
NRG Energy, Inc.*		26,504		517,888
Pepco Holdings, Inc.		20,706		377,885
Ameren Corp.		10,258		289,173
NiSource, Inc.		15,639		275,559
AES Corp.*		21,970		267,595
FirstEnergy Corp.		5,551		205,498
Integrys Energy Group, Inc.		3,982		193,167
DTE Energy Co.		4,125		186,945
Oneok, Inc.		3,043		168,795
Allegheny Energy, Inc.		6,938		168,177
Edison International		4,234		163,432
CMS Energy Corp.		8,344		155,198
American Electric Power Company, Inc.		3,982		143,272
Consolidated Edison, Inc.		2,836		140,581
Duke Energy Corp.		7,127		126,932
Progress Energy, Inc.		2,846		123,744
Nicor, Inc.		2,473		123,452
Sempra Energy		2,210		115,981
Northeast Utilities		3,501		111,612
SCANA Corp.		2,608		105,885
Xcel Energy, Inc.		4,417		104,020
CenterPoint Energy, Inc.		6,569		103,265
Entergy Corp.		1,452		102,845
Total Utilities				4,927,884
CONSUMER STAPLES - 13.6%
SUPERVALU, Inc.		77,966		750,813
Dean Foods Co.*		72,485		640,768
Tyson Foods, Inc. — Class A		28,778		495,557
Archer-Daniels-Midland Co.		15,289		459,893
CVS Caremark Corp.		9,907		344,466
Kroger Co.		12,462		278,650
Safeway, Inc.		10,052		226,070
Costco Wholesale Corp.		3,056		220,674
Walgreen Co.		4,549		177,229
Wal-Mart Stores, Inc.		2,611		140,811
Sysco Corp.		4,585		134,799
ConAgra Foods, Inc.		5,247		118,477
Total Consumer Staples				3,988,207
CONSUMER DISCRETIONARY - 11.0%
Sears Holdings Corp.*		7,900		582,625
GameStop Corp. — Class A*		19,320		442,041
Whirlpool Corp.		4,506		400,268
AutoNation, Inc.*		8,484		239,249
DR Horton, Inc.		19,189		228,925
JC Penney Company, Inc.		6,643		214,635
Gannett Company, Inc.		12,399		187,101
Washington Post Co. — Class B		417		183,271
RadioShack Corp.		9,530		176,210
Time Warner, Inc.		5,295		170,340
CBS Corp. — Class B		7,132		135,865
Lowe’s Companies, Inc.		5,060		126,905
Goodyear Tire & Rubber Co.*		10,112		119,827
Total Consumer Discretionary				3,207,262
HEALTH CARE - 9.9%
Coventry Health Care, Inc.*		20,015		528,396
WellPoint, Inc.*		6,935		394,324
Humana, Inc.*		7,166		392,267
McKesson Corp.		5,336		375,548
Aetna, Inc.		12,161		371,032
Cardinal Health, Inc.		8,825		338,086
UnitedHealth Group, Inc.		6,396		230,960
CareFusion Corp.*		5,576		143,303
Boston Scientific Corp.*		16,892		127,872
Total Health Care				2,901,788

134   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
S&P 500 PURE VALUE FUND

	Shares		Value
ENERGY - 7.9%
Valero Energy Corp.		24,555	$	567,712
Tesoro Corp.		28,931		536,381
Marathon Oil Corp.		8,652		320,383
Sunoco, Inc.		6,326		255,001
QEP Resources, Inc.		5,297		192,334
ConocoPhillips		2,759		187,888
Rowan Companies, Inc.*		4,558		159,120
Hess Corp.		1,326		101,492
Total Energy				2,320,311
INDUSTRIALS - 5.8%
RR Donnelley & Sons Co.		17,394		303,873
L-3 Communications Holdings, Inc.		3,983		280,762
Ryder System, Inc.		4,541		239,038
Jacobs Engineering Group, Inc.*		5,105		234,064
Northrop Grumman Corp.		3,385		219,281
Masco Corp.		11,864		150,198
Quanta Services, Inc.*		7,139		142,209
General Electric Co.		6,642		121,482
Total Industrials				1,690,907
INFORMATION TECHNOLOGY - 3.8%
Jabil Circuit, Inc.		20,943		420,745
Computer Sciences Corp.		8,102		401,859
Xerox Corp.		14,787		170,346
Dell, Inc.*		7,756		105,094
Total Information Technology				1,098,044
MATERIALS - 3.2%
AK Steel Holding Corp.		15,332		250,985
International Paper Co.		8,656		235,789
MeadWestvaco Corp.		7,572		198,083
Alcoa, Inc.		9,208		141,711
Sealed Air Corp.		4,779		121,626
Total Materials				948,194
TELECOMMUNICATION SERVICES - 1.2%
Sprint Nextel Corp.*		83,408		352,816
Total Common Stocks (Cost $25,401,818)				29,094,898

	FACE
	AMOUNT		Value
REPURCHASE AGREEMENT††,1 - 0.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	208,089	$	208,089
Total Repurchase Agreement (Cost $208,089)				208,089
Total Investments - 100.2% (Cost $25,609,907)			$	29,302,987
Liabilities, Less Cash & Other Assets - (0.2)%				(59,613	)
Total Net Assets - 100.0%			$	29,243,374

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6. plc — Public Limited Company

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   135

S&P 500 PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	29,094,898
Repurchase agreement, at value		208,089
Total investments		29,302,987
Receivables:
Fund shares sold		1,367,526
Dividends		19,716
Total assets		30,690,229
Liabilities:
Payable for:
Securities purchased		1,405,947
Fund shares redeemed		46
Management fees		15,239
Custodian fees		671
Transfer agent/maintenance fees		5,080
Investor service fees		5,080
Portfolio accounting fees		2,032
Other		12,760
Total liabilities		1,446,855
Net assets	$	29,243,374
Net assets consist of:
Paid in capital	$	32,724,757
Undistributed net investment income		8,103
Accumulated net realized loss on investments		(7,182,566	)
Net unrealized appreciation on investments		3,693,080
Net assets	$	29,243,374
Capital shares outstanding		359,314
Net asset value per share	$	81.39
Investments, at cost	$	25,401,818
Repurchase agreement, at cost		208,089
Total cost	$	25,609,907

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends	$	443,054
Interest		213
Total investment income		443,267
Expenses:
Management fees		209,873
Transfer agent and administrative fees		69,958
Investor service fees		69,958
Portfolio accounting fees		27,983
Trustees’ fees*		3,383
Audit and outside service fees		23,918
Printing fees		24,457
Miscellaneous		5,634
Total expenses		435,164
Net investment income		8,103
Net Realized And Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,395,380
Net realized gain		3,395,380
Net change in unrealized appreciation (depreciation) on:
Investments		1,018,637
Net change in unrealized appreciation (depreciation)		1,018,637
Net realized and unrealized gain		4,414,017
Net increase in net assets resulting from operations	$	4,422,120

*     Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

136   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P 500 PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	8,103		$	184,518
Net realized gain on investments		3,395,380			2,815,545
Net change in unrealized appreciation (depreciation) on investments		1,018,637			2,503,349
Net increase in net assets resulting from operations		4,422,120			5,503,412
Distributions to shareholders from:
Net investment income		(184,518	)		(438,407	)
Total distributions to shareholders		(184,518	)		(438,407	)
Capital share transactions:
Proceeds from sale of shares		124,591,277			71,165,035
Distributions reinvested		184,518			438,407
Cost of shares redeemed		(127,621,142	)		(58,296,047	)
Net increase (decrease) from capital share transactions		(2,845,347	)		13,307,395
Net increase in net assets		1,392,255			18,372,400
Net assets:
Beginning of year		27,851,119			9,478,719
End of year	$	29,243,374		$	27,851,119
Undistributed net investment income at end of year	$	8,103		$	184,518
Capital share activity:
Shares sold		1,689,047			1,238,658	†
Shares issued from reinvestment of distributions		2,462			6,632	†
Shares redeemed		(1,740,816	)		(1,043,567	)†
Net increase (decrease) in shares		(49,307	)		201,723	†

^† Share amounts for the period January 1, 2009 through April 19, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   137

S&P 500 PURE VALUE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009c			2008c			2007c			2006c
Per Share Data
Net asset value, beginning of period	$	68.16		$	45.81		$	126.85		$	158.90		$	139.50
Income (loss) from investment operations:
Net investment incomea		.02			.65			2.35			2.10			1.95
Net gain (loss) on investments (realized and unrealized)		13.79			22.78			(65.04	)		(10.15	)		22.65
Total from investment operations		13.81			23.43			(62.69	)		(8.05	)		24.60
Less distributions from:
Net investment income		(.58	)		(1.08	)		(1.15	)		(2.85	)		(1.25	)
Net realized gains		—			—			(17.20	)		(21.15	)		(3.95	)
Total distributions		(.58	)		(1.08	)		(18.35	)		(24.00	)		(5.20	)
Net asset value, end of period	$	81.39		$	68.16		$	45.81		$	126.85		$	158.90
Total Returnb		20.32	%		51.22	%		(48.65	%)		(5.37	%)		17.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	29,243		$	27,851		$	9,479		$	24,799		$	83,323
Ratios to average net assets:
Net investment income		0.03	%		1.18	%		2.42	%		1.28	%		1.29	%
Total expenses		1.56	%		1.54	%		1.51	%		1.49	%		1.50	%
Portfolio turnover rate		425	%		421	%		389	%		307	%		401	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Per share amounts for the period December 31, 2005 — April 19, 2009 have been restated to reflect a 1:5 reverse stock split effective April 20, 2009.

138   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

S&P MIDCAP 400 PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a benchmark for mid-cap growth securities. The Fund’s current benchmark is the S&P MidCap 400 Pure Growth Index (the “underlying index”).

Inception: May 3, 2004

For the year ended December 31, 2010, S&P MidCap 400 Pure Growth Fund returned 32.58%, compared with 35.19% for the S&P MidCap 400 Pure Growth Index.

Mid-cap growth stocks significantly outperformed their mid-cap value stock counterparts, paced by strong performances of Consumer Discretionary and Information Technology holdings, which contributed 12.26% and 8.56% to Fund returns, respectively. Other heavily weighted sectors in the index, Health Care and Industrials, made modest contributions to overall returns.

Netflix, Inc., F5 Networks, Inc. and Chipotle Mexican Grill, Inc. were among the stocks which added the most to the index during the year. Wellcare Health Plans, Inc., Equinix, Inc. and FTI Consulting were among the stocks which provided the least performance to the index during the year.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
S&P MIDCAP 400 PURE GROWTH FUND		32.58	%		8.23	%		9.19	%
S&P MIDCAP 400 PURE GROWTH INDEX		35.19	%		10.22	%		11.66	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400 Pure Growth Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Bucyrus International, Inc. — Class A	1.9	%
Guess?, Inc.	1.9	%
Deckers Outdoor Corp.	1.9	%
Rackspace Hosting, Inc.	1.9	%
Riverbed Technology, Inc.	1.8	%
Joy Global, Inc.	1.8	%
Cree, Inc.	1.8	%
Chipotle Mexican Grill, Inc.	1.6	%
Green Mountain Coffee Roasters, Inc.	1.6	%
NewMarket Corp.	1.6	%
Top Ten Total	17.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   139

SCHEDULE OF INVESTMENTS	December 31, 2010
S&P MIDCAP 400 PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
CONSUMER DISCRETIONARY - 31.1%
Guess?, Inc.		25,138	$	1,189,530
Deckers Outdoor Corp.*		14,795		1,179,753
Chipotle Mexican Grill, Inc.*		4,851		1,031,614
Aeropostale, Inc.*		40,207		990,701
Cheesecake Factory, Inc.*		32,312		990,686
Ascena Retail Group, Inc.*		34,328		906,946
Fossil, Inc.*		11,684		823,488
Life Time Fitness, Inc.*		19,677		806,560
Under Armour, Inc. — Class A*		14,199		778,673
LKQ Corp.*		32,569		739,968
Panera Bread Co. — Class A*		7,245		733,266
Tractor Supply Co.		13,958		676,823
Phillips-Van Heusen Corp.		10,508		662,109
Dick’s Sporting Goods, Inc.*		16,400		615,000
Dollar Tree, Inc.*		10,367		581,381
Warnaco Group, Inc.*		10,152		559,071
DreamWorks Animation SKG, Inc. — Class A*		18,367		541,276
J Crew Group, Inc.*		12,487		538,689
PetSmart, Inc.		13,417		534,265
Polaris Industries, Inc.		6,295		491,136
Chico’s FAS, Inc.		40,808		490,920
Advance Auto Parts, Inc.		6,912		457,229
ITT Educational Services, Inc.*		6,741		429,334
Tupperware Brands Corp.		8,994		428,744
Williams-Sonoma, Inc.		11,754		419,500
AnnTaylor Stores Corp.*		13,958		382,310
Strayer Education, Inc.		2,071		315,248
Bally Technologies, Inc.*		7,460		314,737
WMS Industries, Inc.*		5,800		262,392
Lamar Advertising Co. — Class A*		6,397		254,857
Gentex Corp.		7,724		228,321
Total Consumer Discretionary				19,354,527
INFORMATION TECHNOLOGY - 26.9%
Rackspace Hosting, Inc.*		37,232		1,169,457
Riverbed Technology, Inc.*		32,415		1,140,036
Cree, Inc.*		16,720		1,101,681
Skyworks Solutions, Inc.*		32,153		920,540
Informatica Corp.*		20,182		888,613
TIBCO Software, Inc.*		38,748		763,723
Advent Software, Inc.*		12,335		714,443
Equinix, Inc.*		7,534		612,213
ANSYS, Inc.*		11,670		607,657
Concur Technologies, Inc.*		11,549		599,740
Rovi Corp.*		9,408		583,390
Factset Research Systems, Inc.		6,030		565,373
Solera Holdings, Inc.		10,970		562,980
Polycom, Inc.*		13,458		524,593
Lender Processing Services, Inc.		17,769		524,541
CommScope, Inc.*		16,768		523,497
MICROS Systems, Inc.*		10,288		451,232
Quest Software, Inc.*		14,950		414,713
Gartner, Inc.*		12,436		412,875
ADTRAN, Inc.		10,592		383,536
Atmel Corp.*		31,018		382,142
Semtech Corp.*		16,641		376,752
Global Payments, Inc.		7,905		365,290
Alliance Data Systems Corp.*		4,692		333,273
Digital River, Inc.*		8,950		308,059
Silicon Laboratories, Inc.*		6,629		305,067
NeuStar, Inc. — Class A*		10,870		283,163
Jack Henry & Associates, Inc.		8,762		255,412
Zebra Technologies Corp. — Class A* 6,108				232,043
RF Micro Devices, Inc.*		30,474		223,984
ACI Worldwide, Inc.*		7,955		213,751
Total Information Technology				16,743,769
HEALTH CARE - 15.3%
Medicis Pharmaceutical Corp. — Class A		31,830		852,726
Allscripts Healthcare Solutions, Inc.*		43,815		844,315
Edwards Lifesciences Corp.*		9,080		734,027
United Therapeutics Corp.*		11,594		732,973
Mednax, Inc.*		10,857		730,567
Health Management Associates, Inc. — Class A*		67,730		646,144
Endo Pharmaceuticals Holdings, Inc.*		17,114		611,141
IDEXX Laboratories, Inc.*		8,772		607,198
ResMed, Inc.*		17,115		592,864
Perrigo Co.		9,150		579,469
Universal Health Services, Inc. — Class B		12,912		560,639
Kinetic Concepts, Inc.*		12,037		504,110
Lincare Holdings, Inc.		16,658		446,934
Thoratec Corp.*		14,657		415,086
Gen-Probe, Inc.*		6,506		379,625
Mettler-Toledo International, Inc.*		1,961		296,523
Total Health Care				9,534,341
INDUSTRIALS - 8.0%
Bucyrus International, Inc. — Class A		13,321		1,190,897
Joy Global, Inc.		13,024		1,129,832
BE Aerospace, Inc.*		23,199		859,059
Baldor Electric Co.		13,190		831,498
Copart, Inc.*		10,150		379,102
Woodward Governor Co.		8,650		324,894
Rollins, Inc.		11,400		225,150
Total Industrials				4,940,432

140   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
S&P MIDCAP 400 PURE GROWTH FUND

	Shares		Value
MATERIALS - 4.7%
NewMarket Corp.		8,059	$	994,239
Intrepid Potash, Inc.*		17,800		663,762
Lubrizol Corp.		5,895		630,058
Compass Minerals International, Inc.		4,803		428,764
Albemarle Corp.		4,112		229,367
Total Materials				2,946,190
ENERGY - 4.4%
Dril-Quip, Inc.*		9,670		751,552
Oceaneering International, Inc.*		9,812		722,458
Atwood Oceanics, Inc.*		19,102		713,842
Bill Barrett Corp.*		12,433		511,369
Total Energy				2,699,221
FINANCIALS - 4.3%
SL Green Realty Corp.		10,101		681,919
Macerich Co.		10,132		479,953
Jones Lang LaSalle, Inc.		5,159		432,943
Corporate Office Properties Trust		10,778		376,691
Waddell & Reed Financial, Inc. — Class A		9,995		352,724
MSCI, Inc. — Class A*		8,518		331,861
Total Financials				2,656,091
CONSUMER STAPLES - 2.7%
Green Mountain Coffee Roasters, Inc.*		30,602		1,005,582
Hansen Natural Corp.*		12,584		657,891
Total Consumer Staples				1,663,473
TELECOMMUNICATION SERVICES - 2.1%
Syniverse Holdings, Inc.*		25,765		794,850
tw telecom, Inc. — Class A*		29,595		504,595
Total Telecommunication Services				1,299,445
Total Common Stocks (Cost $50,907,298)				61,837,489
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		6		2
Total Consumer Discretionary				2
Total Warrant (Cost $—)				2

	Face
	Amount		Value
REPURCHASE AGREEMENT††,1- 0.2%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	156,188	$	156,188
Total Repurchase Agreement (Cost $156,188)				156,188
Total Investments - 99.7% (Cost $51,063,486)			$	61,993,679
Cash & Other Assets,
Less Liabilities — 0.3%				184,791
Total Net Assets — 100.0%			$	62,178,470

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   141

S&P MIDCAP 400 PURE GROWTH FUND

STATE MENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	61,837,491
Repurchase agreement, at value		156,188
Total investments		61,993,679
Receivables:
Securities sold		730,560
Fund shares sold		235,752
Dividends		19,978
Total assets		62,979,969
Liabilities:
Payable for:
Fund shares redeemed		699,786
Management fees		39,631
Custodian fees		1,744
Transfer agent/maintenance fees		13,210
Investor service fees		13,210
Portfolio accounting fees		5,284
Other		28,634
Total liabilities		801,499
Net assets		$62,178,470
Net assets consist of:
Paid in capital	$	52,672,388
Accumulated net investment loss		—
Accumulated net realized loss on investments		(1,424,111	)
Net unrealized appreciation on investments		10,930,193
Net assets	$	62,178,470
Capital shares outstanding		1,586,541
Net asset value per share	$	39.19
Investments, at cost	$	50,907,298
Repurchase agreement, at cost		156,188
Total cost	$	51,063,486
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends	$	190,332
Interest		352
Total investment income		190,684
Expenses:
Management fees		283,208
Transfer agent and administrative fees		94,403
Investor service fees		94,403
Portfolio accounting fees		37,761
Trustees’ fees*		4,352
Audit and outside service fees		45,350
Printing fees		36,407
Miscellaneous		(5,630	)
Total expenses		590,254
Net investment loss		(399,570	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,437,951
Net realized gain		5,437,951
Net change in unrealized appreciation (depreciation) on:
Investments		3,193,005
Net change in unrealized appreciation (depreciation)		3,193,005
Net realized and unrealized gain		8,630,956
Net increase in net assets resulting from operations	$	8,231,386

*    Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

142   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P MIDCAP 400 PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(399,570	)	$	(267,975	)
Net realized gain on investments		5,437,951			4,202,297
Net change in unrealized appreciation (depreciation) on investments		3,193,005			7,659,593
Net increase in net assets resulting from operations		8,231,386			11,593,915
Distributions to Shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		112,741,033			69,247,787
Cost of shares redeemed		(103,711,891	)		(47,618,481	)
Net increase from capital share transactions		9,029,142			21,629,306
Net increase in net assets		17,260,528			33,223,221
Net assets:
Beginning of year		44,917,942			11,694,721
End of year	$	62,178,470		$	44,917,942
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		3,306,088			2,971,794
Shares redeemed		(3,239,015	)		(2,072,658	)
Net increase in shares		67,073			899,136

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   143

S&P MIDCAP 400 PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	29.56		$	18.85		$	29.51		$	29.33		$	30.24
Income (loss) from investment operations:
Net investment lossa		(.35	)		(.25	)		(.24	)		(.19	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		9.98			10.96			(10.42	)		2.69			1.26
Total from investment operations		9.63			10.71			(10.66	)		2.50			.98
Less distributions:
Net realized gains		—			—			—			(2.32	)		(1.89	)
Total distributions		—			—			—			(2.32	)		(1.89	)
Net asset value, end of period	$	39.19		$	29.56		$	18.85		$	29.51		$	29.33
Total Returnb		32.58	%		56.82	%		(36.12	%)		8.42	%		3.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	62,178		$	44,918		$	11,695		$	25,940		$	15,440
Ratios to average net assets:
Net investment loss		(1.06	%)		(1.01	%)		(0.89	%)		(0.61	%)		(0.90	%)
Total expenses		1.56	%		1.55	%		1.51	%		1.48	%		1.47	%
Portfolio turnover rate		304	%		244	%		381	%		591	%		462	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

144   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

S&P MIDCAP 400 PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a benchmark for mid-cap value securities. The Fund’s current benchmark is the S&P MidCap 400 Pure Value Index (the “underlying index”).

Inception: May 3, 2004

For the year ended December 31, 2010, S&P MidCap 400 Pure Value Fund returned 20.13%, compared with 23.18% for the S&P MidCap 400 Pure Value Index.

Mid-cap value stocks significantly underperformed their mid-cap growth stock counterparts. Industrials, which composed about 20% of the portfolio, rose about 30%, and contributed 6.19% to return. Consumer Discretionary and Financials were also significant contributors to performance. Lightly weighted Telecommunication Services (0.87% of the portfolio) contributed less than 1% to Fund return.

The best-performing holdings included Cathay General Bancorp, Foot Locker, Inc. and Saks, Inc. Dynegy, Inc., Wilmington Trust Corp. and Overseas Shipholding Group, Inc. were among the stocks providing the least performance to the index during the year.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
S&P MIDCAP 400 PURE VALUE FUND		20.13	%		3.21	%		5.86	%
S&P MIDCAP 400 PURE VALUE INDEX		23.18	%		5.40	%		8.18	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400 Pure Value Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Kindred Healthcare, Inc.	2.9	%
CoreLogic, Inc.	2.7	%
First American Financial Corp.	2.2	%
Ingram Micro, Inc. — Class A	2.0	%
Omnicare, Inc.	2.0	%
Barnes & Noble, Inc.	1.9	%
Community Health Systems, Inc.	1.9	%
URS Corp.	1.9	%
Tech Data Corp.	1.9	%
Smithfield Foods, Inc.	1.8	%
Top Ten Total	21.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   145

SCHEDULE OF INVESTMENTS December 31, 2010

S&P MIDCAP 400 PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
FINANCIALS - 22.9%
First American Financial Corp.		22,850	$	341,379
Unitrin, Inc.		10,448		256,394
Protective Life Corp.		8,533		227,319
Reinsurance Group of America, Inc. — Class A		4,216		226,441
Fidelity National Financial, Inc. — Class A		15,443		211,260
Transatlantic Holdings, Inc.		3,791		195,691
Everest Re Group Ltd.		1,985		168,368
Hanover Insurance Group, Inc.		3,582		167,351
American Financial Group, Inc.		5,174		167,069
BancorpSouth, Inc.		10,350		165,083
Old Republic International Corp.		10,659		145,282
StanCorp Financial Group, Inc.		3,201		144,493
International Bancshares Corp.		5,840		116,975
Mercury General Corp.		2,650		113,977
Astoria Financial Corp.		7,906		109,973
W.R. Berkley Corp.		3,990		109,246
HCC Insurance Holdings, Inc.		3,751		108,554
Washington Federal, Inc.		6,354		107,510
Synovus Financial Corp.		38,846		102,554
Fulton Financial Corp.		8,686		89,813
Associated Banc-Corp.		5,622		85,173
Hospitality Properties Trust		3,483		80,248
Webster Financial Corp.		3,510		69,147
First Niagara Financial Group, Inc.		4,640		64,867
Apollo Investment Corp.		5,745		63,597
Total Financials				3,637,764
INDUSTRIALS - 14.0%
URS Corp.*		7,280		302,921
Manpower, Inc.		3,163		198,510
Navigant Consulting, Inc.*		19,944		183,485
KBR, Inc.		6,021		183,460
Granite Construction, Inc.		6,558		179,886
Aecom Technology Corp.*		6,282		175,707
Brink’s Co.		6,442		173,161
AirTran Holdings, Inc.*		22,442		165,846
Shaw Group, Inc.*		4,467		152,905
Harsco Corp.		4,721		133,699
JetBlue Airways Corp.*		19,515		128,994
Alliant Techsystems, Inc.		1,168		86,934
Trinity Industries, Inc.		3,160		84,088
Con-way, Inc.		1,900		69,483
Total Industrials				2,219,079
CONSUMER DISCRETIONARY - 13.7%
Barnes & Noble, Inc.		21,820		308,753
Boyd Gaming Corp.*		26,318		278,971
Collective Brands, Inc.*		11,830		249,613
Regis Corp.		11,502		190,933
American Greetings Corp. — Class A		8,262		183,086
Scholastic Corp.		4,992		147,464
Wendy’s — Class A		31,020		143,312
Rent-A-Center, Inc. — Class A		4,011		129,475
Bob Evans Farms, Inc.		3,920		129,203
Mohawk Industries, Inc.*		1,810		102,736
Foot Locker, Inc.		4,340		85,151
Career Education Corp.*		4,070		84,371
KB Home		5,620		75,814
MDC Holdings, Inc.		2,460		70,774
Total Consumer Discretionary				2,179,656
INFORMATION TECHNOLOGY - 11.8%
CoreLogic, Inc.		22,797		422,200
Ingram Micro, Inc. — Class A*		16,978		324,110
Tech Data Corp.*		6,731		296,299
Avnet, Inc.*		7,833		258,724
Arrow Electronics, Inc.*		7,397		253,347
AOL, Inc.*		7,650		181,382
SRA International, Inc. — Class A*		3,700		75,665
Convergys Corp.*		5,164		68,010
Total Information Technology				1,879,737
HEALTH CARE - 11.0%
Kindred Healthcare, Inc.*		25,118		461,418
Omnicare, Inc.		12,419		315,318
Community Health Systems, Inc.*		8,170		305,313
Owens & Minor, Inc.		7,540		221,902
Health Net, Inc.*		7,251		197,880
LifePoint Hospitals, Inc.*		4,378		160,892
Teleflex, Inc.		1,662		89,432
Total Health Care				1,752,155
UTILITIES - 8.6%
PNM Resources, Inc.		20,217		263,225
Questar Corp.		9,970		173,578
Atmos Energy Corp.		4,831		150,727
N.V. Energy, Inc.		9,325		131,016
Great Plains Energy, Inc.		6,518		126,384
Dynegy, Inc. — Class A*		21,978		123,517
UGI Corp.		3,377		106,646
WGL Holdings, Inc.		2,516		89,997
Hawaiian Electric Industries, Inc.		3,137		71,492
Vectren Corp.		2,435		61,800
IDACORP, Inc.		1,644		60,795
Total Utilities				1,359,177
CONSUMER STAPLES - 6.2%
Smithfield Foods, Inc.*		13,662		281,847
Universal Corp.		5,999		244,159
BJ’s Wholesale Club, Inc.*		4,262		204,150
Ruddick Corp.		3,840		141,466
Ralcorp Holdings, Inc.*		1,621		105,381
Total Consumer Staples				977,003

146    |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

S&P MIDCAP 400 PURE VALUE FUND

	Shares		Value
MATERIALS - 5.4%
Ashland, Inc.		4,314	$	219,410
Commercial Metals Co.		10,067		167,012
Reliance Steel & Aluminum Co.		2,540		129,794
Worthington Industries, Inc.		3,892		71,613
Olin Corp.		3,257		66,834
Cabot Corp.		1,757		66,151
Temple-Inland, Inc.		3,084		65,504
Louisiana-Pacific Corp.*		6,912		65,387
Total Materials				851,705
ENERGY - 4.4%
Overseas Shipholding Group, Inc.		6,500		230,230
Frontier Oil Corp.		6,433		115,858
Helix Energy Solutions Group, Inc.*		8,710		105,740
Tidewater, Inc.		1,742		93,789
Exterran Holdings, Inc.*		3,632		86,987
Southern Union Co.		2,618		63,015
Total Energy				695,619
TELECOMMUNICATION SERVICES - 1.5%
Telephone & Data Systems, Inc.		3,767		137,684
Cincinnati Bell, Inc.*		37,681		105,506
Total Telecommunication Services				243,190
Total Common Stocks (Cost $13,362,865)				15,795,085
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		27		9
Total Consumer Discretionary				9
Total Warrant (Cost $—)				9

	Face
	Amount		Value
REPURCHASE AGREEMENT††,1 - 0.8%
Credit Suisse Group issued 12/31/10 at 0.10%due 01/03/11	$	126,163	$	126,163
Total Repurchase Agreement (Cost $126,163)				126,163
Total Investments - 100.3% (Cost $13,489,028)			$	15,921,257
Liabilities, Less Cash & Other Assets — (0.3)%				(46,157	)
Total Net Assets — 100.0%			$	15,875,100

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report    |   147

S&P MIDCAP 400 PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	15,795,094
Repurchase agreement, at value		126,163
Total investments		15,921,257
Receivables:
Fund shares sold		409,250
Dividends		9,300
Total assets		16,339,807
Liabilities:
Payable for:
Securities purchased		433,545
Fund shares redeemed		3,434
Management fees		10,045
Custodian fees		444
Transfer agent/maintenance fees		3,348
Investor service fees		3,348
Portfolio accounting fees		1,339
Other		9,204
Total liabilities		464,707
Net assets	$	15,875,100
Net assets consist of:
Paid in capital	$	17,983,247
Accumulated net investment loss		—
Accumulated net realized loss on investments		(4,540,376	)
Net unrealized appreciation on investments		2,432,229
Net assets	$	15,875,100
Capital shares outstanding		199,825
Net asset value per share	$	79.45
Investments, at cost	$	13,362,865
Repurchase agreement, at cost		126,163
Total cost	$	13,489,028

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends	$	369,287
Interest		193
Total investment income		369,480
Expenses:
Management fees		184,951
Transfer agent and administrative fees		61,650
Investor service fees		61,650
Portfolio accounting fees		24,660
Trustees’ fees*		3,149
Miscellaneous		44,790
Total expenses		380,850
Net investment loss		(11,370	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,255,787
Net realized gain		2,255,787
Net change in unrealized appreciation (depreciation) on:
Investments		(27,441	)
Net change in unrealized appreciation (depreciation)		(27,441	)
Net realized and unrealized gain		2,228,346
Net increase in net assets resulting from operations	$	2,216,976

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

148   |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P MIDCAP 400 PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(11,370	)	$	141,796
Net realized gain on investments		2,255,787			2,805,164
Net change in unrealized appreciation (depreciation) on investments		(27,441	)		3,258,696
Net increase in net assets resulting from operations		2,216,976			6,205,656
Distributions to Shareholders From:
Net investment income		(141,797	)		(254,108	)
Total distributions to shareholders		(141,797	)		(254,108	)
Capital Share Transactions:
Proceeds from sale of shares		64,430,849			59,187,577
Distributions reinvested		141,797			254,108
Cost of shares redeemed		(80,279,065	)		(43,481,930	)
Net increase (decrease) from capital share transactions		(15,706,419	)		15,959,755
Net increase (decrease) in net assets		(13,631,240	)		21,911,303
Net Assets:
Beginning of year		29,506,340			7,595,037
End of year	$	15,875,100		$	29,506,340
Accumulated/(Undistributed) net investment income/(loss) at end of year	$	—		$	141,796
Capital Share Activity:
Shares sold		899,338			1,065,338	†
Shares issued from reinvestment of distributions		1,894			4,032	†
Shares redeemed		(1,142,948	)		(802,602	)†
Net increase (decrease) in shares		(241,716	)		266,768	†

^† Share amounts for the period January 1, 2009 through April 19, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   149

S&P MIDCAP 400 PURE VALUE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009c			2008c			2007c			2006c
Per Share Data
Net asset value, beginning of period	$	66.83		$	43.46		$	104.20		$	111.90		$	96.35
Income (loss) from investment operations:
Net investment income (loss)a		(.03	)		.50			1.75			1.05			1.40
Net gain (loss) on investments (realized and unrealized)		13.44			23.46			(47.84	)		(6.45	)		15.05
Total from investment operations		13.41			23.96			(46.09	)		(5.40	)		16.45
Less distributions from:
Net investment income		(.79	)		(.59	)		—			(2.20	)		(.90	)
Net realized gains		—			—			(14.65	)		(.10	)		—
Total distributions		(.79	)		(.59	)		(14.65	)		(2.30	)		(.90	)
Net asset value, end of period	$	79.45		$	66.83		$	43.46		$	104.20		$	111.90
Total Returnb		20.13	%		55.22	%		(43.63	%)		(4.85	%)		17.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,875		$	29,506		$	7,595		$	15,998		$	28,254
Ratios to average net assets:
Net investment income (loss)		(0.05	%)		0.90	%		2.06	%		0.87	%		1.37	%
Total expenses		1.54	%		1.54	%		1.51	%		1.49	%		1.49	%
Portfolio turnover rate		250	%		321	%		255	%		358	%		307	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Per share amounts for the period December 31, 2005 — April 19, 2009 have been restated to reflect a 1:5 reverse stock split effective April 20, 2009.

150    |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

S&P SMALLCAP 600 PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a benchmark for small-cap growth securities. The Fund’s current benchmark is the S&P SmallCap 600 Pure Growth Index (the “underlying index”).

Inception: May 3, 2004

For the year ended December 31, 2010, S&P SmallCap 600 Pure Growth Fund returned 25.40%, compared with 28.72% for the S&P SmallCap 600 Pure Growth Index.

Small-cap growth stocks performed in-line with their value stock counterparts. Information Technology stocks, which composed about 30% of the portfolio, climbed about 30%, adding 10.10% to the return. Consumer Discretionary, about 23% of the index weight, rose 42% and contributed 9.15% to the return. Telecommunication Services was the only detractor from return, -0.27%.

The best-performing stocks in the S&P SmallCap 600 Pure Growth Index were Crocs, Inc., TriQuint Semiconductor, Inc. and Deckers Outdoor Corp. The weakest performers were Healthways, Inc., Nutrisystems, Inc. and Genoptix, Inc.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/03/04)
S&P SMALLCAP 600 PURE GROWTH FUND		25.40	%		3.50	%		5.85	%
S&P SMALLCAP 600 PURE GROWTH INDEX		28.72	%		5.73	%		8.37	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P SmallCap 600 Pure Growth Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Hi-Tech Pharmacal Company, Inc.	1.4	%
Dolan Co.	1.2	%
Sourcefire, Inc.	1.2	%
Medifast, Inc.	1.2	%
Par Pharmaceutical Companies, Inc.	1.1	%
Blue Coat Systems, Inc.	1.1	%
Air Methods Corp.	1.1	%
Sturm Ruger & Company, Inc.	1.1	%
Synchronoss Technologies, Inc.	1.1	%
Ebix, Inc.	1.0	%
Top Ten Total	11.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   151

SCHEDULE OF INVESTMENTS December 31, 2010

S&P SMALLCAP 600 PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 100.4%
INFORMATION TECHNOLOGY - 32.1%
Sourcefire, Inc.*		12,952	$	335,845
Blue Coat Systems, Inc.*		10,716		320,087
Synchronoss Technologies, Inc.*		11,040		294,878
Ebix, Inc.*		12,062		285,508
TriQuint Semiconductor, Inc.*		24,105		281,787
Interactive Intelligence, Inc.*		10,494		274,523
Netscout Systems, Inc.*		11,764		270,690
Kopin Corp.*		58,174		242,004
Volterra Semiconductor Corp.*		10,244		237,251
Wright Express Corp.*		5,127		235,842
RightNow Technologies, Inc.*		9,780		231,493
CommVault Systems, Inc.*		7,986		228,559
Smith Micro Software, Inc.*		14,475		227,837
Novatel Wireless, Inc.*		22,720		216,976
comScore, Inc.*		9,479		211,476
Taleo Corp. — Class A*		7,512		207,707
Compellent Technologies, Inc.*		7,371		203,366
TTM Technologies, Inc.*		13,302		198,333
Bottomline Technologies, Inc.*		9,110		197,778
Radiant Systems, Inc.*		9,883		193,410
Blackbaud, Inc.		7,349		190,339
Kulicke & Soffa Industries, Inc.*		25,202		181,454
Perficient, Inc.*		14,450		180,625
Diodes, Inc.*		6,669		179,996
Power Integrations, Inc.		4,462		179,105
MAXIMUS, Inc.		2,724		178,640
Mercury Computer Systems, Inc.*		9,542		175,382
Tyler Technologies, Inc.*		7,993		165,935
Ceva, Inc.*		8,090		165,845
Oplink Communications, Inc.*		8,618		159,174
Liquidity Services, Inc.*		10,903		153,187
MicroStrategy, Inc. — Class A*		1,728		147,692
Synaptics, Inc.*		5,016		147,370
OSI Systems, Inc.*		3,963		144,095
DTS, Inc.*		2,570		126,058
Netgear, Inc.*		3,547		119,463
j2 Global Communications, Inc.*		4,042		117,016
Monolithic Power Systems, Inc.*		6,925		114,401
CSG Systems International, Inc.*		5,939		112,485
Stratasys, Inc.*		3,444		112,412
Hittite Microwave Corp.*		1,774		108,285
JDA Software Group, Inc.*		3,732		104,496
Veeco Instruments, Inc.*		2,401		103,147
Websense, Inc.*		5,007		101,392
Sonic Solutions, Inc.*		6,440		96,600
DG FastChannel, Inc.*		3,270		94,438
Littelfuse, Inc.		1,890		88,943
iGate Corp.		4,290		84,556
Stamps.com, Inc.		5,964		79,023
Viasat, Inc.*		1,680		74,609
Forrester Research, Inc.		2,068		72,980
Global Payments, Inc.		1		46
Total Information Technology				8,954,539
CONSUMER DISCRETIONARY - 27.0%
Sturm Ruger & Company, Inc.		19,563		299,118
Coinstar, Inc.*		5,037		284,288
Texas Roadhouse, Inc. — Class A*		16,168		277,605
BJ’s Restaurants, Inc.*		7,794		276,142
CROCS, Inc.*		15,555		266,302
DineEquity, Inc.*		5,350		264,183
Jos A. Bank Clothiers, Inc.*		6,543		263,814
Lumber Liquidators Holdings, Inc.*		10,396		258,964
Jo-Ann Stores, Inc.*		4,170		251,117
Iconix Brand Group, Inc.*		11,594		223,880
Buckle, Inc.		5,771		217,971
Interval Leisure Group, Inc.*		13,467		217,357
Buffalo Wild Wings, Inc.*		4,814		211,094
Cabela’s, Inc.*		9,567		208,082
PF Chang’s China Bistro, Inc.		4,270		206,924
Kirkland’s, Inc.*		14,705		206,311
Zumiez, Inc.*		7,466		200,611
Steven Madden Ltd.*		4,808		200,590
True Religion Apparel, Inc.*		9,005		200,451
National Presto Industries, Inc.		1,487		193,325
Monro Muffler Brake, Inc.		5,403		186,890
CEC Entertainment, Inc.*		4,750		184,443
Kid Brands, Inc.*		20,580		175,959
Cracker Barrel Old Country Store, Inc.		3,099		169,732
HSN, Inc.*		5,530		169,439
Arbitron, Inc.		4,002		166,163
Peet’s Coffee & Tea, Inc.*		3,933		164,163
Hibbett Sports, Inc.*		4,328		159,703
Maidenform Brands, Inc.*		6,414		152,461
California Pizza Kitchen, Inc.*		8,780		151,718
Biglari Holdings, Inc.*		363		148,906
Blue Nile, Inc.*		2,546		145,275
Capella Education Co.*		1,970		131,163
American Public Education, Inc.*		3,130		116,561
Pre-Paid Legal Services, Inc.*		1,838		110,740
PetMed Express, Inc.		6,020		107,216
Universal Electronics, Inc.*		3,596		102,019
Volcom, Inc.		5,347		100,898
Universal Technical Institute, Inc.		3,540		77,951
Carter’s, Inc.*		2,430		71,709
Total Consumer Discretionary				7,521,238
HEALTH CARE - 21.2%
Hi-Tech Pharmacal Company, Inc.*		15,502		386,775
Par Pharmaceutical Companies, Inc.*		8,368		322,252
Air Methods Corp.*		5,424		305,208
MWI Veterinary Supply, Inc.*		4,072		257,147
Arqule, Inc.*		38,655		226,905
Neogen Corp.*		5,412		222,054

152   |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

S&P SMALLCAP 600 PURE GROWTH FUND

	Shares		Value
IPC The Hospitalist Company, Inc.*		5,660	$	220,797
Quality Systems, Inc.		3,131		218,606
Cooper Companies, Inc.		3,874		218,261
Regeneron Pharmaceuticals, Inc.*		6,636		217,860
HMS Holdings Corp.*		3,280		212,446
Align Technology, Inc.*		10,008		195,556
Catalyst Health Solutions, Inc.*		4,185		194,561
American Medical Systems Holdings, Inc.*		10,105		190,580
Healthspring, Inc.*		7,118		188,840
Salix Pharmaceuticals Ltd.*		3,656		171,686
Parexel International Corp.*		7,730		164,108
Corvel Corp.*		3,303		159,700
Bio-Reference Labs, Inc.*		7,092		157,301
Integra LifeSciences Holdings Corp.*		3,215		152,069
Cyberonics, Inc.*		4,900		151,998
Ensign Group, Inc.		6,028		149,916
Dionex Corp.*		1,265		149,283
Almost Family, Inc.*		3,779		145,189
Genoptix, Inc.*		7,560		143,791
Cubist Pharmaceuticals, Inc.*		6,337		135,612
Abaxis, Inc.*		4,728		126,947
Viropharma, Inc.*		6,100		105,652
Kensey Nash Corp.*		3,494		97,238
Chemed Corp.		1,530		97,170
Haemonetics Corp.*		1,390		87,820
Enzo Biochem, Inc.*		15,013		79,269
Zoll Medical Corp.*		1,968		73,269
Total Health Care				5,925,866
INDUSTRIALS - 5.7%
Dolan Co.*		24,381		339,383
Triumph Group, Inc.		1,980		177,032
Consolidated Graphics, Inc.*		3,480		168,536
Vicor Corp.		9,014		147,830
Allegiant Travel Co. — Class A		2,842		139,940
American Science & Engineering, Inc.		1,430		121,879
II-VI, Inc.*		2,620		121,463
Orion Marine Group, Inc.*		9,550		110,780
Exponent, Inc.*		2,720		102,082
Applied Signal Technology, Inc.		2,620		99,272
Healthcare Services Group, Inc.		4,372		71,132
Total Industrials				1,599,329
FINANCIALS - 4.1%
World Acceptance Corp.*		4,792		253,018
Portfolio Recovery Associates, Inc.*		2,342		176,118
Ezcorp, Inc. — Class A*		6,369		172,791
Cash America International, Inc.		4,035		149,013
First Cash Financial Services, Inc.*		4,725		146,428
Stifel Financial Corp.*		1,724		106,957
eHealth, Inc.*		5,171		73,376
Signature Bank *		1,256	$	62,800
Total Financials				1,140,501
CONSUMER STAPLES - 3.8%
Medifast, Inc.*		11,498		332,062
Boston Beer Company, Inc. —Class A*		2,365		224,888
TreeHouse Foods, Inc.*		3,826		195,470
Darling International, Inc.*		13,575		180,276
Calavo Growers, Inc.		5,895		135,880
Total Consumer Staples				1,068,576
MATERIALS - 3.4%
Schweitzer-Mauduit International, Inc.		3,617		227,582
KapStone Paper and Packaging Corp.*		14,062		215,149
Buckeye Technologies, Inc.		10,034		210,814
Balchem Corp.		5,728		193,664
Quaker Chemical Corp.		2,636		109,842
Total Materials				957,051
ENERGY - 1.9%
Gulfport Energy Corp.*		8,534		184,761
Contango Oil & Gas Co.*		2,490		144,246
Oil States International, Inc.*		1,693		108,504
CARBO Ceramics, Inc.		820		84,903
Total Energy				522,414
TELECOMMUNICATION SERVICES - 1.2%
Neutral Tandem, Inc.*		9,400		135,736
Atlantic Tele-Network, Inc.		3,116		119,468
Cbeyond, Inc.*		5,794		88,532
Total Telecommunication Services				343,736
Total Common Stocks (Cost $23,362,328)				28,033,250

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	171,213		171,213
Total Repurchase Agreement (Cost $171,213)				171,213
Total Investments - 101.0% (Cost $23,533,541)			$	28,204,463
Liabilities, Less Cash & Other Assets — (1.0)%				(284,983	)
Total Net Assets — 100.0%			$	27,919,480

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report    |    153

S&P SMALLCAP 600 PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	28,033,250
Repurchase agreement, at value		171,213
Total investments		28,204,463
Receivables:
Securities sold		827,917
Fund shares sold		620,796
Dividends		6,844
Total assets		29,660,020
Liabilities:
Payable for:
Fund shares redeemed		1,693,482
Management fees		16,289
Custodian fees		717
Transfer agent/maintenance fees		5,430
Investor service fees		5,430
Portfolio accounting fees		2,172
Other		17,020
Total liabilities		1,740,540
Net assets	$	27,919,480
Net assets consist of:
Paid in capital	$	31,311,531
Accumulated net investment loss		—
Accumulated net realized loss on investments		(8,062,973	)
Net unrealized appreciation on investments		4,670,922
Net assets	$	27,919,480
Capital shares outstanding		934,553
Net asset value per share	$	29.87
Investments, at cost	$	23,362,328
Repurchase agreement, at cost		171,213
Total cost	$	23,533,541

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends	$	92,293
Interest		154
Total investment income		92,447
Expenses:
Management fees		114,125
Transfer agent and administrative fees		38,042
Investor service fees		38,042
Portfolio accounting fees		15,216
Trustees’ fees*		1,651
Audit and outside service fees		22,416
Printing fees		16,707
Miscellaneous		(7,403	)
Total expenses		238,796
Net investment loss		(146,349	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		881,785
Net realized gain		881,785
Net change in unrealized appreciation (depreciation) on:
Investments		2,039,219
Net change in unrealized appreciation (depreciation)		2,039,219
Net realized and unrealized gain		2,921,004
Net increase in net assets resulting from operations	$	2,774,655

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

154    |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P SMALLCAP 600 PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(146,349	)	$	(156,884	)
Net realized gain on investments		881,785			1,103,692
Net change in unrealized appreciation (depreciation) on investments		2,039,219			1,459,565
Net increase in net assets resulting from operations		2,774,655			2,406,373
Distributions to Shareholders		—			—
Capital Share Transactions:
Proceeds from sale of shares		96,754,486			94,056,239
Cost of shares redeemed		(85,165,739	)		(96,624,009	)
Net increase (decrease) from capital share transactions		11,588,747			(2,567,770	)
Net increase (decrease) in net assets		14,363,402			(161,397	)
Net assets:
Beginning of year		13,556,078			13,717,475
End of year	$	27,919,480		$	13,556,078
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		3,748,828			4,853,655
Shares redeemed		(3,383,275	)		(5,056,310	)
Net increase (decrease) in shares		365,553			(202,655	)

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report    |    155

S&P SMALLCAP 600 PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	23.82		$	17.78		$	27.07		$	29.92		$	28.64
Income (loss) from investment operations:
Net investment lossa		(.25	)		(.23	)		(.01	)		(.28	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		6.30			6.27			(9.28	)		.30			2.54
Total from investment operations		6.05			6.04			(9.29	)		.02			2.23
Less distributions from:
Net realized gains		—			—			—			(2.87	)		(.95	)
Total distributions		—			—			—			(2.87	)		(.95	)
Net asset value, end of period	$	29.87		$	23.82		$	17.78		$	27.07		$	29.92
Total Returnb		25.40	%		33.97	%		(34.32	%)		(0.11	%)		7.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	27,919		$	13,556		$	13,717		$	12,428		$	23,300
Ratios to average net assets:
Net investment loss		(0.96	%)		(1.13	%)		(0.04	%)		(0.90	%)		(1.01	%)
Total expenses		1.57	%		1.56	%		1.52	%		1.49	%		1.49	%
Portfolio turnover rate		529	%		633	%		465	%		573	%		769	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

156    |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

S&P SMALLCAP 600 PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a benchmark for small-cap value securities. The Fund’s current benchmark is the S&P SmallCap 600 Pure Value Index (the “underlying index”).

Inception: May 3, 2004

For the year ended December 31, 2010, S&P SmallCap 600 Pure Value Fund returned 25.10%, compared with 29.18% for the S&P SmallCap 600 Pure Value Index.

Small-cap value stocks performed in-line with their small-cap growth stock counterparts. Consumer Discretionary stocks, which composed 58% of the portfolio, climbed 27%, adding 13.49% to return. Industrials was the other large contributor to return, 5.29%. Consumer Staples, which composed about 5% of the portfolio and had performance of -6%, was the only negative contributor to return, -0.26%.

The stocks contributing the most to return in the S&P SmallCap 600 Pure Value Index were Quiksilver, Inc., Tuesday Morning Corp. and Petroleum Development Corp. Those contributing least were First BankCorp (Puerto Rico), Seahawk Drilling, Inc. and AMN Healthcare Services, Inc.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 3, 2004 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/2010

							Since Inception
	1 Year			5 Year			(05/03/04)
S&P SMALLCAP 600 PURE VALUE FUND		25.10	%		1.72	%		4.40	%
S&P SMALLCAP 600 PURE VALUE INDEX		29.18	%		4.01	%		7.78	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P SmallCap 600 Pure Value Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Kendle International, Inc.	1.9	%
Ciber, Inc.	1.8	%
Corinthian Colleges, Inc.	1.8	%
StarTek, Inc.	1.8	%
Audiovox Corp. — Class A	1.7	%
School Specialty, Inc.	1.7	%
Agilysys, Inc.	1.6	%
Seneca Foods Corp. — Class A	1.4	%
SWS Group, Inc.	1.4	%
Alliance One International, Inc.	1.3	%
Top Ten Total	16.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   157

SCHEDULE OF INVESTMENTS December 31, 2010

S&P SMALLCAP 600 PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 101.9%
CONSUMER DISCRETIONARY - 26.6%
Corinthian Colleges, Inc.*		59,510	$	310,047
Audiovox Corp. — Class A*		34,742		299,823
Standard Pacific Corp.*		47,369		217,897
O’Charleys, Inc.*		27,738		199,714
Tuesday Morning Corp.*		36,546		192,963
Lithia Motors, Inc. — Class A		12,738		182,026
MarineMax, Inc.*		19,431		181,680
La-Z-Boy, Inc. — Class Z*		19,449		175,430
Red Robin Gourmet Burgers,Inc.*		7,836		168,239
Group 1 Automotive, Inc.		3,735		155,974
Fred’s, Inc. — Class A		11,238		154,635
Spartan Motors, Inc.		25,236		153,687
HOT Topic, Inc.		24,196		151,709
Sonic Automotive, Inc. — Class A		11,316		149,824
Christopher & Banks Corp.		22,124		136,063
Callaway Golf Co.		16,646		134,333
Zale Corp.*		30,079		128,137
Brown Shoe Company, Inc.		9,183		127,919
Stage Stores, Inc.		7,119		123,444
Standard Motor Products, Inc.		8,774		120,204
PEP Boys-Manny Moe & Jack		8,812		118,345
Stein Mart, Inc.		11,545		106,791
Quiksilver, Inc.*		20,843		105,674
Haverty Furniture Companies, Inc.		7,743		100,504
Blyth, Inc.		2,412		83,166
OfficeMax, Inc.*		4,630		81,951
Coldwater Creek, Inc.*		24,890		78,901
Live Nation Entertainment, Inc.*		6,450		73,659
Ruth’s Hospitality Group, Inc.*		15,121		70,010
Helen of Troy Ltd.*		2,056		61,145
Jack in the Box, Inc.*		2,880		60,854
Multimedia Games, Inc.*		10,190		56,860
Ruby Tuesday, Inc.*		3,765		49,171
Marcus Corp.		3,070		40,739
Skechers U.S.A., Inc. — Class A*		2,020		40,400
Total Consumer Discretionary				4,591,918
INDUSTRIALS - 17.3%
School Specialty, Inc.*		21,055		293,296
Skywest, Inc.		14,195		221,726
Apogee Enterprises, Inc.		12,216		164,550
Gibraltar Industries, Inc.*		12,052		163,546
Federal Signal Corp.		22,225		152,463
EMCOR Group, Inc.*		5,176		150,000
Universal Forest Products, Inc.		3,524		137,084
SFN Group, Inc.*		13,807		134,756
Comfort Systems USA, Inc.		10,183		134,110
ABM Industries, Inc.		4,640		122,032
United Stationers, Inc.*		1,760		112,306
Briggs & Stratton Corp.		4,894		96,363
Griffon Corp.*		7,274		92,671
G&K Services, Inc. — Class A		2,990		92,421
Lydall, Inc.*		11,230		90,401
CDI Corp.		4,845		90,069
Kelly Services, Inc. — Class A*		4,538		85,314
Lawson Products, Inc.		3,374		83,979
Volt Information Sciences, Inc.*		9,040		78,196
On Assignment, Inc.*		9,396		76,577
Dycom Industries, Inc.*		4,869		71,818
Powell Industries, Inc.*		1,920		63,130
GenCorp, Inc.*		11,838		61,202
AAR Corp.*		2,155		59,198
Standard Register Co.		17,356		59,184
Curtiss-Wright Corp.		1,530		50,796
Standex International Corp.		1,468		43,908
Total Industrials				2,981,096
FINANCIALS - 15.8%
SWS Group, Inc.		47,837		241,577
Wilmington Trust Corp.		42,185		183,083
First BanCorp*		311,059		143,087
Stewart Information Services Corp.		11,657		134,405
Piper Jaffray Companies, Inc.*		3,689		129,152
Susquehanna Bancshares, Inc.		13,336		129,092
Selective Insurance Group, Inc.		6,706		121,714
Bank Mutual Corp.		24,863		118,845
Horace Mann Educators Corp.		6,491		117,098
Investment Technology Group, Inc.*		7,106		116,325
Hanmi Financial Corp.*		96,358		110,812
Wintrust Financial Corp.		3,252		107,414
Presidential Life Corp.		10,244		101,723
United Community Banks, Inc.*		48,611		94,791
Whitney Holding Corp.		5,777		81,745
Delphi Financial Group, Inc. — Class A		2,761		79,627
First Midwest Bancorp, Inc.		6,133		70,652
United Fire & Casualty Co.		3,022		67,451
Wilshire Bancorp, Inc.		8,692		66,233
Interactive Brokers Group, Inc. — Class A		3,517		62,673
Navigators Group, Inc.*		1,235		62,182
Infinity Property & Casualty Corp.		947		58,525
Pinnacle Financial Partners, Inc.*		3,822		51,903
Cedar Shopping Centers, Inc.		7,945		49,974
AMERISAFE, Inc.*		2,813		49,227
Safety Insurance Group, Inc.		992		47,189
Boston Private Financial Holdings, Inc.		7,134		46,728
Kite Realty Group Trust		8,303		44,919
PrivateBancorp, Inc. — Class A		3,010		43,284
Total Financials				2,731,430

158    |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

S&P SMALLCAP 600 PURE VALUE FUND

	Shares		Value
INFORMATION TECHNOLOGY - 14.7%
Ciber, Inc.*		67,213	$	314,557
StarTek, Inc.*		60,073		304,570
Agilysys, Inc.*		49,392		278,077
SYNNEX Corp.*		5,814		181,397
Insight Enterprises, Inc.*		12,078		158,946
Benchmark Electronics, Inc.*		6,889		125,104
Brightpoint, Inc.*		13,743		119,976
THQ, Inc.*		19,100		115,746
Hutchinson Technology, Inc.*		30,475		113,062
Scansource, Inc.*		3,387		108,045
Black Box Corp.		2,609		99,899
Gerber Scientific, Inc.*		12,234		96,282
United Online, Inc.		14,505		95,733
CACI International, Inc. — Class A*		1,780		95,052
Brooks Automation, Inc.*		8,493		77,032
Anixter International, Inc.		1,030		61,522
Digi International, Inc.*		4,495		49,894
Infospace, Inc.*		5,970		49,551
Arris Group, Inc.*		3,739		41,952
Comtech Telecommunications Corp.		1,478		40,985
Total Information Technology				2,527,382
HEALTH CARE - 11.6%
Kendle International, Inc.*		30,292		329,880
PharMerica Corp.*		19,295		220,928
Molina Healthcare, Inc.*		6,565		182,835
Centene Corp.*		6,077		153,991
Cross Country Healthcare, Inc.*		17,515		148,352
Healthways, Inc.*		13,217		147,502
Amedisys, Inc.*		4,209		141,002
RehabCare Group, Inc.*		5,805		137,578
Gentiva Health Services, Inc.*		4,306		114,540
Cambrex Corp.*		21,851		112,970
Invacare Corp.		2,964		89,394
Amsurg Corp. — Class A*		3,920		82,124
Symmetry Medical, Inc.*		8,870		82,047
CONMED Corp.*		1,866		49,318
Total Health Care				1,992,461
CONSUMER STAPLES - 6.1%
Seneca Foods Corp. — Class A*		9,140		246,597
Alliance One International, Inc.*		53,298		225,984
Spartan Stores, Inc.		9,623		163,110
Nash Finch Co.		3,595		152,823
Central Garden and Pet Co. — Class A*		15,111		149,297
Sanderson Farms, Inc.		1,540		60,291
Casey’s General Stores, Inc.		1,185		50,374
Total Consumer Staples				1,048,476
MATERIALS - 4.3%
A. Schulman, Inc.		6,113		139,927
Penford Corp.*		22,472		137,304
Wausau Paper Corp.		12,424		106,971
Headwaters, Inc.*		17,659		80,878
AM Castle & Co.*		4,224		77,764
Myers Industries, Inc.		7,225		70,372
Kaiser Aluminum Corp.		1,391		69,675
Stepan Co.		661		50,414
Total Materials				733,305
ENERGY - 3.2%
World Fuel Services Corp.		3,858		139,505
Hornbeck Offshore Services, Inc.*		4,758		99,347
Seahawk Drilling, Inc.*		9,401		84,139
Matrix Service Co.*		6,197		75,480
Holly Corp.		1,340		54,632
Bristow Group, Inc.*		977		46,261
Tetra Technologies, Inc.*		3,723		44,192
Total Energy				543,556
UTILITIES - 2.3%
Central Vermont Public Service Corp.		4,703		102,808
Laclede Group, Inc.		2,647		96,721
Avista Corp.		3,327		74,924
NorthWestern Corp.		1,589		45,811
CH Energy Group, Inc.		856		41,850
Southwest Gas Corp.		1,114		40,850
Total Utilities				402,964
Total Common Stocks (Cost $14,842,845)				17,552,588

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	96,439		96,439
Total Repurchase Agreement (Cost $96,439)				96,439
Total Investments - 102.4% (Cost $14,939,284)			$	17,649,027
Liabilities, Less Cash & Other Assets — (2.4)%				(421,279	)
Total Net Assets — 100.0%			$	17,227,748

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report    |   159

S&P SMALLCAP 600 PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	17,552,588
Repurchase agreement, at value		96,439
Total investments		17,649,027
Receivables:
Securities sold		659,806
Dividends		5,747
Total assets		18,314,580
Liabilities:
Payable for:
Fund shares redeemed		1,047,807
Management fees		10,136
Custodian fees		446
Transfer agent/maintenance fees		3,378
Investor service fees		3,378
Portfolio accounting fees		1,351
Other		20,336
Total liabilities		1,086,832
Net assets	$	17,227,748
Net assets consist of:
Paid in capital	$	21,465,415
Accumulated net investment loss		—
Accumulated net realized loss on investments		(6,947,410	)
Net unrealized appreciation on investments		2,709,743
Net assets	$	17,227,748
Capital shares outstanding		168,925
Net asset value per share	$	101.98
Investments, at cost	$	14,842,845
Repurchase agreement, at cost		96,439
Total cost	$	14,939,284
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends	$	205,029
Interest		207
Total investment income		205,236
Expenses:
Management fees		163,053
Transfer agent and administrative fees		54,351
Investor service fees		54,351
Portfolio accounting fees		21,741
Trustees’ fees*		2,544
Printing fees		19,418
Miscellaneous		22,023
Total expenses		337,481
Net investment loss		(132,245	)
Net Realized and Unrealized Gain (loss):
Net realized gain (loss) on:
Investments		(147,775	)
Net realized loss		(147,775	)
Net change in unrealized appreciation (depreciation) on:
Investments		723,537
Net change in unrealized appreciation (depreciation)		723,537
Net realized and unrealized gain		575,762
Net increase in net assets resulting from operations	$	443,517

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

160   |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

S&P SMALLCAP 600 PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(132,245	)	$	(72,023	)
Net realized gain (loss) on investments		(147,775	)		6,577,669
Net change in unrealized appreciation (depreciation) on investments		723,537			1,753,036
Net increase in net assets resulting from operations		443,517			8,258,682
Distributions to shareholders from:
Net investment income		—			(195,475	)
Total distributions to shareholders		—			(195,475	)
Capital share transactions:
Proceeds from sale of shares		126,900,019			82,652,502
Distributions reinvested		—			195,475
Cost of shares redeemed		(123,677,761	)		(87,659,469	)
Net increase (decrease) from capital share transactions		3,222,258			(4,811,492	)
Net increase in net assets		3,665,775			3,251,715
Net assets:
Beginning of year		13,561,973			10,310,258
End of year	$	17,227,748		$	13,561,973
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		1,392,712			1,216,577	†
Shares issued from reinvestment of distributions		—			2,433	†
Shares redeemed		(1,390,154	)		(1,255,471	)†
Net increase (decrease) in shares		2,558			(36,461	)†

^† Share amounts for the period January 1, 2009 through April 19, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report    |    161

S&P SMALLCAP 600 PURE VALUE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009c			2008c			2007c			2006c
Per Share Data
Net asset value, beginning of period	$	81.52		$	50.83		$	91.10		$	143.00		$	128.35
Income (loss) from investment operations:
Net investment income (loss)a		(.56	)		(.26	)		1.20			.95			.90
Net gain (loss) on investments (realized and unrealized)		21.02			31.93			(40.87	)		(29.85	)		23.70
Total from investment operations		20.46			31.67			(39.67	)		(28.90	)		24.60
Less distributions from:
Net investment income		—			(.98	)		(.60	)		(.30	)		(.85	)
Net realized gains		—			—			—			(22.70	)		(9.10	)
Total distributions		—			(.98	)		(.60	)		(23.00	)		(9.95	)
Net asset value, end of period	$	101.98		$	81.52		$	50.83		$	91.10		$	143.00
Total Returnb		25.10	%		62.33	%		(43.50	%)		(20.36	%)		19.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,228		$	13,562		$	10,310		$	9,710		$	34,124
Ratios to average net assets:
Net investment income (loss)		(0.61	%)		(0.37	%)		1.60	%		0.66	%		0.64	%
Total expenses		1.55	%		1.55	%		1.52	%		1.49	%		1.49	%
Portfolio turnover rate		526	%		380	%		391	%		241	%		433	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Per share amounts for the period December 31, 2005 — April 19, 2009 have been restated to reflect a 1:5 reverse stock split effective April 20, 2009.

162    |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the STOXX 50^® Index (the “underlying index”).

Inception: October 1, 2001

For the one-year period ended December 31, 2010, Europe 1.25x Strategy Fund maintained a daily correlation of over 93% to its benchmark of 125% of the daily price movement of the STOXX 50 Index. Europe 1.25x Strategy Fund returned -10.35% while the STOXX 50 Index returned -3.56% over the same period. The Consumer Staples segment, up 15.37% during the year, contributed the most to Fund performance, 2.02%. The Materials segment, which climbed 23.45%, contributed 1.81% to return. Detracting from performance was Financials, which was the largest sector in the portfolio at 27%, and returned -17.86%, dropping -4.92% off return. Utilities, Energy and Health Care also detracted.

The EURO STOXX 50 tracks some of the largest companies in Europe, but its most heavily weighted sector, Financials, is still undergoing recovery. The Fund’s returns, expressed in dollar terms, were also impacted by the 6.6% decline of the euro against the dollar during the year.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 1, 2001 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/2010

							Since Inception
	1 Year			5 Year			(10/01/01)
EUROPE 1.25x STRATEGY FUND		-10.35	%		-4.36	%		1.38	%
STOXX 50 INDEX		-3.56	%		0.68	%		4.69	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The STOXX 50 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Novartis AG ADR	4.3	%
Total S.A. ADR	3.5	%
HSBC Holdings plc ADR	2.9	%
Siemens AG ADR	2.5	%
France Telecom S.A. ADR	2.4	%
Royal Dutch Shell plc ADR	2.4	%
ENI SpA ADR	2.3	%
Vodafone Group plc ADR	2.2	%
BP plc ADR	2.2	%
Rio Tinto plc ADR	2.1	%
Top Ten Total	26.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX | SGI variable trust annual report   |   163

SCHEDULE OF INVESTMENTS December 31, 2010

EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 51.1%
FINANCIALS - 10.4%
HSBC Holdings plc ADR		5,120	$	261,325
Banco Santander S.A. ADR		14,840		158,046
Deutsche Bank AG		2,090		108,785
UBS AG		6,260		103,102
Credit Suisse Group AG ADR		2,310		93,347
Banco Bilbao Vizcaya Argentaria S.A. ADR		8,310		84,513
Barclays plc ADR		4,720		77,974
ING Groep N.V. ADR		5,960		58,348
Total Financials				945,440
ENERGY - 10.4%
Total S.A. ADR		5,990		320,345
Royal Dutch Shell plc ADR		3,210		214,364
ENI SpA ADR		4,660		203,829
BP plc ADR		4,590		202,740
Total Energy				941,278
HEALTH CARE - 8.8%
Novartis AG ADR		6,620		390,249
GlaxoSmithKline plc ADR		4,030		158,057
AstraZeneca plc ADR		2,860		132,103
Sanofi-Aventis S.A. ADR		2,632		84,829
Alcon, Inc.		200		32,680
Total Health Care				797,918
TELECOMMUNICATION SERVICES - 7.2%
France Telecom S.A. ADR		10,350		218,178
Vodafone Group plc ADR		7,710		203,775
Telefonica S.A. ADR		2,480		169,682
Deutsche Telekom AG ADR		4,710		60,288
Total Telecommunication Services				651,923
MATERIALS - 4.5%
Rio Tinto plc ADR		2,610		187,033
BHP Billiton Ltd. ADR		1,670		155,176
ArcelorMittal		1,670		63,677
Total Materials				405,886
CONSUMER STAPLES - 3.1%
Diageo plc ADR		1,430		106,292
Unilever N.V.		3,380		106,132
British American Tobacco plc ADR		950		73,815
Total Consumer Staples				286,239
INDUSTRIALS - 2.5%
Siemens AG ADR		1,800		223,650
INFORMATION TECHNOLOGY - 2.1%
SAP AG ADR		1,600		80,976
Telefonaktiebolaget LM Ericsson ADR		5,070		58,457
Nokia Oyj ADR		4,990		51,497
Total Information Technology				190,930
CONSUMER DISCRETIONARY - 1.5%
Daimler AG		2,010		135,836
UTILITIES - 0.6%
Veolia Environnement S.A. ADR		1,860		54,609
Total Common Stocks (Cost $3,600,146)				4,633,709

	Face
	Amount
REPURCHASE AGREEMENTS† †, 1 - 41.3%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	956,676		956,676
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		953,895		953,895
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		913,013		913,013
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		913,014		913,014
Total Repurchase Agreements (Cost $3,736,598)				3,736,598
Total Investments - 92.4% (Cost $7,336,744)			$	8,370,307
Other Assets,
Less Liabilities — 7.6%				692,223
Total Net Assets — 100.0%			$	9,062,530

164   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

EUROPE 1.25x STRATEGY FUND

			Unrealized
	Contracts		Gain (Loss)
CURRENCY FUTURES CONTRACTS PURCHASED†
March 2011 EURO Currency Futures Contracts (Aggregate Value of Contracts $6,848,025)		41	$	73,723
FUTURES CONTRACTS PURCHASED†
March 2011 STOXX 50 Index Futures Contracts (Aggregate Value of Contracts $1,518,678)		44	$	(9,247	)
March 2011 EURO STOXX 50 Index Futures Contracts (Aggregate Value of Contracts $3,514,918)		94		(56,615	)
(Total Aggregate Value of Contracts $5,033,596)			$	(65,862	)

Country Diversification

The pie chart above reflects percentages of the market value of Common Stocks.

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   165

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	4,633,709
Repurchase agreements, at value		3,736,598
Total investments		8,370,307
Segregated cash with broker		511,372
Receivable from broker		16,976
Receivables:
Variation margin		44,848
Securities sold		95,476
Fund shares sold		43,056
Dividends		15,012
Foreign taxes reclaim		4,449
Interest		12
Total assets		9,101,508
Liabilities:
Due to broker		17,089
Payable for:
Management fees		6,640
Custodian fees		243
Transfer agent/maintenance fees		1,845
Investor service fees		1,845
Portfolio accounting fees		738
Licensing fees		194
Other		10,384
Total liabilities		38,978
Net assets	$	9,062,530
Net assets consist of:
Paid in capital	$	14,815,530
Undistributed net investment income		—
Accumulated net realized loss on investments		(6,794,424	)
Net unrealized appreciation on investments		1,041,424
Net assets	$	9,062,530
Capital shares outstanding		612,334
Net asset value per share	$	14.80
Investments, at cost	$	3,600,146
Repurchase agreements, at cost		3,736,598
Total cost	$	7,336,744

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $12,331)	$	283,431
Interest		3,994
Total investment income		287,425
Expenses:
Management fees		102,282
Transfer agent and administrative fees		28,412
Investor service fees		28,412
Portfolio accounting fees		11,365
Trustees’ fees*		1,707
Miscellaneous		21,955
Total expenses		194,133
Net investment income		93,292
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		789,283
Futures contracts		(1,339,251	)
Foreign currency		(280,974	)
Net realized loss		(830,942	)
Net change in unrealized appreciation (depreciation) on:
Investments		(2,196,793	)
Futures contracts		(301,705	)
Foreign currency		68,201
Net change in unrealized appreciation (depreciation)		(2,430,297	)
Net realized and unrealized loss		(3,261,239	)
Net decrease in net assets resulting from operations	$	(3,167,947	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

166   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	93,292		$	136,383
Net realized gain (loss) on investments and foreign currency		(830,942	)		1,630,865
Net change in unrealized appreciation (depreciation) on investments and foreign currency		(2,430,297	)		2,263,618
Net increase (decrease) in net assets resulting from operations		(3,167,947	)		4,030,866
Distributions to shareholders from:
Net investment income		(169,256	)		(517,215	)
Total distributions to shareholders		(169,256	)		(517,215	)
Capital share transactions:
Proceeds from sale of shares		87,347,017			87,899,479
Distributions reinvested		169,256			517,215
Cost of shares redeemed		(97,474,706	)		(82,107,657	)
Net increase (decrease) from capital share transactions		(9,958,433	)		6,309,037
Net increase (decrease) in net assets		(13,295,636	)		9,822,688
Net assets:
Beginning of year		22,358,166			12,535,478
End of year	$	9,062,530		$	22,358,166
Undistributed net investment income at end of year	$	—		$	169,255
Capital share activity:
Shares sold		5,949,770			6,090,427
Shares issued from reinvestment of distributions		11,157			29,811
Shares redeemed		(6,684,951	)		(5,775,119	)
Net increase (decrease) in shares		(724,024	)		345,119

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   167

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	16.73		$	12.65		$	29.95		$	29.60		$	23.84
Income (loss) from investment operations:
Net investment incomea		.12			.13			.55			.70			.70
Net gain (loss) on investments (realized and unrealized)		(1.85	)		4.31			(17.04	)		3.26			6.31
Total from investment operations		(1.73	)		4.44			(16.49	)		3.96			7.01
Less distributions from:
Net investment income		(.20	)		(.36	)		(.19	)		(.71	)		(.48	)
Net realized gains		—			—			(.62	)		(2.90	)		(.77	)
Total distributions		(.20	)		(.36	)		(.81	)		(3.61	)		(1.25	)
Net asset value, end of period	$	14.80		$	16.73		$	12.65		$	29.95		$	29.60
Total Returnb		(10.35	%)		35.01	%		(54.86	%)		13.06	%		29.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,063		$	22,358		$	12,535		$	82,833		$	89,490
Ratios to average net assets:
Net investment income		0.82	%		0.90	%		2.33	%		2.18	%		2.55	%
Total expenses		1.71	%		1.71	%		1.67	%		1.63	%		1.65	%
Portfolio turnover rate		461	%		321	%		111	%		220	%		219	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

168   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

Inception: October 1, 2001

For the one-year period ended December 31, 2010, Japan 2x Strategy Fund maintained a daily correlation of over 91% to its benchmark of 200% of the daily price movement of the fair value of the Nikkei-225 Stock Average Index. Japan 2x Strategy Fund returned 15.72% while the Nikkei-225 Stock Average Index returned 11.36% over the same time period.

All sectors contributed to Fund performance. The largest contributions were from Industrials, Information Technology and Consumer Discretionary, contributing 4.20%, 3.15% and 2.30% to return, respectively.

The Japanese yen appreciated almost 13% against the dollar during the year, which helped the Fund’s performance as it does not hedge out its foreign currency exposure.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 1, 2001 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/2010

							Since Inception
	1 Year			5 Year			(10/01/01)
JAPAN 2x STRATEGY FUND		15.72	%		-2.19	%		2.00	%
NIKKEI - 225 STOCK AVERAGE INDEX		11.36	%		-0.35	%		5.77	%

* Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Nikkei-225 Stock Average Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as futures contracts, and currency futures contracts.

the RYDEX | SGI variable trust annual report   |   169

SCHEDULE OF INVESTMENTS December 31, 2010

JAPAN 2x STRATEGY FUND

	Face
	Amount		Value
REPURCHASE AGREEMENTS††,1 - 76.9%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	1,697,597		$	1,697,597
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		1,692,661			1,692,661
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		1,620,119			1,620,119
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		1,620,119			1,620,119
Total Repurchase Agreements (Cost $6,630,496)					6,630,496
Total Investments - 76.9% (Cost $6,630,496)				$	6,630,496
Cash & Other Assets, Less Liabilities - 23.1%					1,987,184
Total Net Assets — 100.0%				$	8,617,680

			Unrealized
	Contracts		Gain (loss)
CURRENCY FUTURES CONTRACTS PURCHASED†
March 2011 Japanese Yen Currency Futures Contracts (Aggregate Value of Contracts $17,720,063)		115	$	340,218
FUTURES CONTRACTS PURCHASED†
March 2011 Nikkei-225 Stock Average Index Futures Contracts (Aggregate Value of Contracts $17,101,750)		335		(43,203	)

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreements — See Note 6.

170   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Repurchase agreements, at value	$	6,630,496
Total investments		6,630,496
Segregated cash with broker		2,242,500
Receivables:
Variation margin		27,311
Interest		21
Total assets		8,900,328
Liabilities:
Payable for:
Fund shares redeemed		264,311
Management fees		5,027
Custodian fees		221
Transfer agent/maintenance fees		1,676
Investor service fees		1,676
Portfolio accounting fees		670
Other		9,067
Total liabilities		282,648
Net assets	$	8,617,680
Net assets consist of:
Paid in capital	$	15,355,616
Accumulated net investment loss		—
Accumulated net realized loss on investments		(7,034,951	)
Net unrealized appreciation on investments		297,015
Net assets	$	8,617,680
Capital shares outstanding		401,013
Net asset value per share	$	21.49
Repurchase agreements, at cost	$	6,630,496
Total cost	$	6,630,496

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Interest	$	7,255
Total investment income		7,255
Expenses:
Management fees		50,491
Transfer agent and administrative fees		16,830
Investor service fees		16,830
Portfolio accounting fees		6,732
Trustees’ fees*		842
Audit and outside service fees		6,235
Printing fees		5,574
Miscellaneous		837
Total expenses		104,371
Net investment loss		(97,116	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Futures contracts		580,853
Net realized gain		580,853
Net change in unrealized appreciation (depreciation) on:
Futures contracts		127,894
Net change in unrealized appreciation (depreciation)		127,894
Net realized and unrealized gain		708,747
Net increase in net assets resulting from operations	$	611,631

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   171

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(97,116	)	$	(138,097	)
Net realized gain on investments		580,853			2,016,139
Net change in unrealized appreciation (depreciation) on investments		127,894			(810,156	)
Net increase in net assets resulting from operations		611,631			1,067,886
Distributions to shareholders from:
Net investment income		—			(31,969	)
Total distributions to shareholders		—			(31,969	)
Capital share transactions:
Proceeds from sale of shares		74,254,486			69,313,593
Distributions reinvested		—			31,969
Cost of shares redeemed		(74,658,275	)		(75,075,537	)
Net decrease from capital share transactions		(403,789	)		(5,729,975	)
Net Increase (decrease) in net assets		207,842			(4,694,058	)
Net assets:
Beginning of year		8,409,838			13,103,896
End of year	$	8,617,680		$	8,409,838
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		4,076,487			4,318,134
Shares issued from reinvestment of distributions		—			1,917
Shares redeemed		(4,128,317	)		(4,736,245	)
Net decrease in shares		(51,830	)		(416,194	)

172   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	18.57		$	15.08		$	22.73		$	27.13		$	33.42
Income (loss) from investment operations:
Net investment income (loss)a		(.26	)		(.23	)		.05			.88			1.02
Net gain (loss) on investments (realized and unrealized)		3.18			3.79			(7.86	)		(3.83	)		.50
Total from investment operations		2.92			3.56			(7.81	)		(2.95	)		1.52
Less distributions from:
Net investment income		—			(.07	)		(.13	)		(1.45	)		(1.29	)
Net realized gains		—			—			—			—			(6.52	)
Total distributions		—			(.07	)		(.13	)		(1.45	)		(7.81	)
Payments by affiliates		—			—			.29	c		—			—
Net asset value, end of period	$	21.49		$	18.57		$	15.08		$	22.73		$	27.13
Total Returnb		15.72	%		23.68	%		(32.97%)	c		(11.23	%)		5.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,618		$	8,410		$	13,104		$	15,568		$	30,510
Ratios to average net assets:
Net investment income (loss)		(1.44	%)		(1.49	%)		0.25	%		3.32	%		2.99	%
Total expenses		1.55	%		1.60	%		1.65	%		1.64	%		1.63	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Excluding the reimbursement, the Fund’s total return would have been (34.25%)

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   173

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

STRENGTHENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the U.S. Dollar Index^® (the “underlying index”).

Inception: September 30, 2005

For the one-year period ended December 31, 2010, Strengthening Dollar 2x Strategy Fund maintained a daily correlation of over 98% to its benchmark of 200% of the daily price movement of the U.S. Dollar Index. Strengthening Dollar 2x Strategy Fund returned -4.51%, compared with a 1.50% gain for its benchmark, the U.S. Dollar Index.

The yen, Swiss franc and Swedish krona contributed the most to index performance during the year, while the euro and British pound detracted from the performance of the index for the year.

The U.S. Dollar Index traded in a narrow range early in 2010, but spiked in mid-year over concerns about European sovereign debt and fears of a slow global economic recovery. It fell back in the last half of the year as the U.S. Federal Reserve pumped money into the economy via low rates and a second round of quantitative easing designed to help the U.S. economy gain traction. There was also another round of fiscal stimulus in the December tax cuts.

At year end, the dollar had advanced against the euro and pound, both suffering from their own versions of economic and fiscal woes, but fallen against the yen and Swiss franc. The strength of the yen was a surprise, given Japanese economic weakness and large debt burden, and despite the first market intervention from the Bank of Japan since 2004 to hold down the yen, designed to protect its exporters. The Swiss central bank also reportedly mounted a massive intervention effort to stem appreciation of its currency, as investors were attracted to its strong fiscal position.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
September 30, 2005 — December 31, 2010

AVERAGE ANNUAL RETURNS PERIODS ENDED 12/31/2010

							Since Inception
	1 Year			5 Year			(09/30/05)
STRENGTHENING DOLLAR 2x STRATEGY FUND		-4.51	%		-7.54	%		-6.64	%
U.S. DOLLAR INDEX		1.50	%		-2.82	%		-2.35	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as currency index swaps and currency futures contracts.

174    |    the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS

STRENGTHENING DOLLAR 2x STRATEGY FUND December 31, 2010

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† — 29.1%
Federal Home Loan Bank1 0.08% due 01/10/11	$	1,000,000	$	999,980
Farmer Mac1 0.10% due 01/13/11		1,000,000		999,966
Total Federal Agency Discount Notes (Cost $1,999,946)				1,999,946
REPURCHASE AGREEMENTS††,2 — 69.3%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/113		1,270,608		1,270,608
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		1,197,383		1,197,383
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		1,146,068		1,146,068
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		1,146,068		1,146,068
Total Repurchase Agreements (Cost $4,760,127)				4,760,127
Total Investments — 98.4% (Cost $6,760,073)			$	6,760,073
Cash & Other Assets, Less Liabilities — 1.6%				110,471
Total Net Assets — 100.0%			$	6,870,544

			Unrealized
	Contracts		Loss
CURRENCY FUTURES CONTRACTS PURCHASED†
March 2011 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $12,132,900)		153	$	(137,638	)
	Units
CURRENCY INDEX SWAP AGREEMENT††
Goldman Sachs International January 2011 U.S. Dollar Index Swap, Terminating 01/27/114 (Notional Value $1,624,846)		20,532	$	(9,774	)

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as currency index swap collateral at December 31, 2010.
4	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report     |    175

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	1,999,946
Repurchase agreements, at value		4,760,127
Total investments		6,760,073
Segregated cash with broker		198,900
Receivable for swap settlement		59,132
Receivables:
Fund shares sold		331,751
Interest		15
Total assets		7,349,871
Liabilities:
Unrealized depreciation on swap agreements		9,774
Payable for:
Variation margin		76,194
Fund shares redeemed		377,460
Management fees		5,577
Custodian fees		204
Transfer agent/maintenance fees		1,549
Investor service fees		1,549
Portfolio accounting fees		620
Other		6,400
Total liabilities		479,327
Net assets	$	6,870,544
Net assets consist of:
Paid in capital	$	10,321,015
Accumulated net investment loss		—
Accumulated net realized loss on investments		(3,303,059	)
Net unrealized depreciation on investments		(147,412	)
Net assets	$	6,870,544
Capital shares outstanding		1,044,852
Net asset value per share	$	6.58
Investments, at cost	$	1,999,946
Repurchase agreements, at cost		4,760,127
Total cost	$	6,760,073

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Interest	$	14,902
Total investment income		14,902
Expenses:
Management fees		92,729
Transfer agent and administrative fees		25,758
Investor service fees		25,758
Portfolio accounting fees		10,303
Trustees’ fees*		1,112
Miscellaneous		18,927
Total expenses		174,587
Net investment loss		(159,685	)
Net Realized and Unrealized Gain (loss):
Net realized gain (loss) on:
Currency index swaps		(461,328	)
Futures contracts		159,413
Net realized loss		(301,915	)
Net change in unrealized appreciation (depreciation) on:
Currency index swaps		(89,680	)
Futures contracts		(279,238	)
Net change in unrealized appreciation (depreciation)		(368,918	)
Net realized and unrealized loss		(670,833	)
Net decrease in net assets resulting from operations	$	(830,518	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

176    |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(159,685	)	$	(93,045	)
Net realized loss on investments		(301,915	)		(2,009,336	)
Net change in unrealized appreciation (depreciation) on investments		(368,918	)		772,300
Net decrease in net assets resulting from operations		(830,518	)		(1,330,081	)
Distributions to shareholders from:
Net realized gains		—			(2,363,329	)
Total distributions to shareholders		—			(2,363,329	)
Capital share transactions:
Proceeds from sale of shares		125,762,833			101,503,797
Distributions reinvested		—			2,363,329
Cost of shares redeemed		(125,587,200	)		(99,671,863	)
Net increase from capital share transactions		175,633			4,195,263
Net increase (decrease) in net assets		(654,885	)		501,853
Net assets:
Beginning of year		7,525,429			7,023,576
End of year	$	6,870,544		$	7,525,429
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		17,276,135			6,089,566
Shares issued from reinvestment of distributions		—			367,547
Shares redeemed		(17,324,657	)		(5,694,228	)
Net increase (decrease) in shares		(48,522	)		762,885

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |    177

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	6.88		$	21.25		$	20.13		$	22.59		$	25.62
Income (loss) from investment operations:
Net investment income (loss)a		(.11	)		(.27	)		(.08	)		.70			.79
Net gain (loss) on investments (realized and unrealized)		(.19	)		(3.82	)		1.20			(3.16	)		(3.51	)
Total from investment operations		(.30	)		(4.09	)		1.12			(2.46	)		(2.72	)
Less distributions from:
Net investment income		—			—			—			—			(.31	)
Net realized gains		—			(10.28	)		—			—			—
Total distributions		—			(10.28	)		—			—			(.31	)
Net asset value, end of period	$	6.58		$	6.88		$	21.25		$	20.13		$	22.59
Total Returnb		(4.51	%)		(15.84	%)		5.56	%		(10.89	%)		(10.63	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,871		$	7,525		$	7,024		$	4,006		$	3,067
Ratios to average net assets:
Net investment income (loss)		(1.55	%)		(1.57	%)		(0.41	%)		3.26	%		3.33	%
Total expenses		1.69	%		1.72	%		1.69	%		1.61	%		1.65	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

178    |    the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

WEAKENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the U.S. Dollar Index (the “underlying index”).

Inception: September 30, 2005

For the one-year period ended December 31, 2010, Weakening Dollar 2x Strategy Fund maintained a daily correlation of over 98% to its benchmark of -200% of the daily price movement of the U.S. Dollar Index. Weakening Dollar 2x Strategy Fund returned -5.61%, compared with a 1.50% gain for its benchmark, the U.S. Dollar Index.

The yen, Swiss franc and Swedish krona contributed the most to index performance during the year, while the euro and British pound detracted from the performance of the index for the year.

The U.S. Dollar Index traded in a narrow range early in 2010, but spiked in mid-year over concerns about European sovereign debt and fears of a slow global economic recovery. It fell back in the last half of the year as the U.S. Federal Reserve pumped money into the economy via low rates and a second round of quantitative easing designed to help the U.S. economy gain traction. There was also another round of fiscal stimulus in the December tax cuts.

At year end, the dollar had advanced against the euro and pound, both suffering from their own versions of economic and fiscal woes, but fallen against the yen and Swiss franc. The strength of the yen was a surprise, given Japanese economic weakness and large debt burden, and despite the first market intervention from the Bank of Japan since 2004 to hold down the yen, designed to protect its exporters. The Swiss central bank also reportedly mounted a massive intervention effort to stem appreciation of its currency, as investors were attracted to its strong fiscal position.

Derivatives in the Fund were used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
September 30, 2005 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/2010

							Since Inception
	1 Year			5 Year			(09/30/05)
WEAKENING DOLLAR 2x STRATEGY FUND		-5.61	%		4.02	%		3.31	%
U.S. DOLLAR INDEX		1.50	%		-2.82	%		-2.35	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The U.S. Dollar Index is an unmanaged index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative instruments such as currency index swap agreements and currency futures contracts.

the RYDEX | SGI variable trust annual report   |   179

SCHEDULE OF INVESTMENTS	December 31, 2010
WEAKENING DOLLAR 2x STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† — 18.2%
Federal Home Loan Bank1 0.17% due 01/10/11	$	300,000	$	299,994
Farmer Mac1 0.10% due 01/13/11		300,000		299,990
Total Federal Agency Discount Notes (Cost $599,984)				599,984
REPURCHASE AGREEMENTS††,2 — 79.2%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/113		738,466		738,466
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		643,755		643,755
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		616,165		616,165
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		616,165		616,165
Total Repurchase Agreements (Cost $2,614,551)				2,614,551
Total Investments — 97.4% (Cost $3,214,535)			$	3,214,535
Cash & Other Assets, Less Liabilities — 2.6%				87,167
Total Net Assets — 100.0%			$	3,301,702

			Unrealized
	Contracts		Gain
CURRENCY FUTURES CONTRACTS SOLD SHORT†
March 2011 U.S. Dollar Index Futures Contract (Aggregate Value of Contracts $5,551,000)		70	$	65,221
	Units
CURRENCY INDEX SWAP AGREEMENT SOLD SHORT††
Goldman Sachs International January 2011 U.S. Dollar Index Swap, Terminating 01/27/114 (Notional Value $1,096,238)		13,852	$	13,390

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 6.
3	All or a portion of this security is pledged as currency index swap collateral at December 31, 2010.
4	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

180   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	599,984
Repurchase agreements, at value		2,614,551
Total investments		3,214,535
Segregated cash with broker		91,000
Unrealized appreciation on swap agreements		13,390
Receivables:
Variation margin		34,860
Fund shares sold		4,857
Interest		8
Total assets		3,358,650
Liabilities:
Swap settlement		37,676
Fund shares redeemed		8,471
Management fees		2,086
Custodian fees		76
Transfer agent/maintenance fees		580
Investor service fees		580
Portfolio accounting fees		232
Other		7,247
Total liabilities		56,948
Net Assets	$	3,301,702
Net assets consist of:
Paid in capital	$	5,660,094
Accumulated net investment loss		—
Accumulated net realized loss on investments		(2,437,003	)
Net unrealized appreciation on investments		78,611
Net assets	$	3,301,702
Capital shares outstanding		130,730
Net asset value per share	$	25.26
Investments, at cost	$	599,984
Repurchase agreements, at cost		2,614,551
Total cost	$	3,214,535

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment income:
Interest	$	5,125
Total investment income		5,125
Expenses:
Management fees		32,220
Transfer agent and administrative fees		8,950
Investor service fees		8,950
Portfolio accounting fees		3,580
Trustees’ fees*		481
Audit and outside service fees		3,796
Miscellaneous		2,811
Total expenses		60,788
Net investment loss		(55,663	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Currency index swaps		(299,127	)
Futures contracts		(480,538	)
Net realized loss		(779,665	)
Net change in unrealized appreciation (depreciation) on:
Currency index swaps		17,029
Futures contracts		287,670
Net change in unrealized appreciation (depreciation)		304,699
Net realized and unrealized loss		(474,966	)
Net decrease in net assets resulting from operations	$	(530,629	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   181

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(55,663	)	$	(118,114	)
Net realized gain (loss) on investments		(779,665	)		965,487
Net change in unrealized appreciation (depreciation) on investments		304,699			(759,018	)
Net increase (decrease) in net assets resulting from operations		(530,629	)		88,355
Distributions to shareholders from:
Net investment income		—			(2,390	)
Total distributions to shareholders		—			(2,390	)
Capital share transactions:
Proceeds from sale of shares		23,120,221			59,861,148
Distributions reinvested		—			2,390
Cost of shares redeemed		(24,195,851	)		(66,006,661	)
Net decrease from capital share transactions		(1,075,630	)		(6,143,123	)
Net decrease in net assets		(1,606,259	)		(6,057,158	)
Net assets:
Beginning of year		4,907,961			10,965,119
End of year	$	3,301,702		$	4,907,961
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		939,074			2,482,978
Shares issued from reinvestment of distributions		—			83
Shares redeemed		(991,828	)		(2,736,491	)
Net decrease in shares		(52,754	)		(253,430	)

182   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	26.75		$	25.10		$	28.60		$	27.51		$	24.31
Income (loss) from investment operations:
Net investment income (loss)a		(.38	)		(.40	)		.07			.89			.93
Net gain (loss) on investments (realized and unrealized)		(1.11	)		2.06			(3.57	)		4.15			3.14
Total from investment operations		(1.49	)		1.66			(3.50	)		5.04			4.07
Less distributions from:
Net investment income		—			(.01	)		—			(3.95	)		(.86	)
Net realized gains		—			—			—			—			(.01	)
Total distributions		—			(.01	)		—			(3.95	)		(.87	)
Net asset value, end of period	$	25.26		$	26.75		$	25.10		$	28.60		$	27.51
Total Returnb		(5.61	%)		6.61	%		(12.24	%)		18.12	%		16.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,302		$	4,908		$	10,965		$	13,579		$	11,155
Ratios to average net assets:
Net investment income (loss)		(1.55	%)		(1.58	%)		0.23	%		3.02	%		3.46	%
Total expenses		1.70	%		1.71	%		1.68	%		1.64	%		1.65	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   183

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

REAL ESTATE FUND

OBJECTIVE: Seeks to provide capital appreciation by investing in companies that are involved in the real estate industry, including real estate investment trusts (“REITs”), (collectively, “Real Estate Companies”).

Inception: October 1, 2001

Real Estate Fund returned 24.86%, compared to a gain of 15.06% for the S&P 500 Index. Within the sector, Real Estate Investment Trusts (REITs), which compose 92% of the portfolio, rose about 27% for the year, contributing almost all of the return. Real Estate Management & Development segment, which composed about 7% of the portfolio, provided most of the rest of Fund performance.

The year was favorable to REITs in that slow, steady economic growth helped set the stage for improvements in occupancy and rents, while also helping non-commercial mortgage delinquencies level off. The industry was also aided by falling 10-year Treasury yields, which pushed capitalization rates lower and supported property valuations.

The strongest performing stocks included Equity Residential, Host Hotels & Resorts, Inc. and Simon Property Group, Inc. St. Joe Co., Dupont Fabros Technology, Inc. and Forestar Group, Inc. contributed least to Fund performance during the year.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
October 1, 2001 – December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(10/01/01)
REAL ESTATE FUND		24.86	%		-0.71	%		6.54	%
S&P 500 INDEX		15.06	%		2.29	%		4.09	%
MSCI U.S. REIT INDEX		28.48	%		2.99	%		10.62	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and MSCI U.S. REIT Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Simon Property Group, Inc.	3.1	%
Public Storage	2.5	%
Vornado Realty Trust	2.3	%
Equity Residential	2.3	%
General Growth Properties, Inc.	2.2	%
HCP, Inc.	2.2	%
Host Hotels & Resorts, Inc.	2.0	%
Boston Properties, Inc.	2.0	%
Annaly Capital Management, Inc.	1.9	%
Weyerhaeuser Co.	1.9	%
Top Ten Total	22.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

184   |   the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 100.0%
REAL ESTATE INVESTMENT TRUSTS (REITS) - 94.2%
SPECIALIZED REITS - 24.1%
Public Storage		6,152	$	623,936
HCP, Inc.		14,851		546,368
Host Hotels & Resorts, Inc.		28,875		515,996
Ventas, Inc.		8,154		427,922
Health Care REIT, Inc.		8,256		393,316
Plum Creek Timber Company, Inc.		9,700		363,265
Nationwide Health Properties, Inc.		8,931		324,910
Rayonier, Inc.		5,746		301,780
Senior Housing Properties Trust		12,102		265,518
Hospitality Properties Trust		10,906		251,274
Omega Healthcare Investors, Inc.		9,909		222,358
Entertainment Properties Trust		4,704		217,560
DiamondRock Hospitality Co.*		17,075		204,900
LaSalle Hotel Properties		7,748		204,547
Extra Space Storage, Inc.		10,421		181,325
Healthcare Realty Trust, Inc.		8,275		175,182
Medical Properties Trust, Inc.		15,421		167,009
Sunstone Hotel Investors, Inc.*		16,081		166,117
Potlatch Corp.		4,567		148,656
Hersha Hospitality Trust — Class A		22,155		146,223
U-Store-It Trust		13,293		126,682
Sovran Self Storage, Inc.		3,059		112,602
Total Specialized REITs				6,087,446
RETAIL REITS - 20.0%
Simon Property Group, Inc.		8,001		796,019
General Growth Properties, Inc.		35,862		555,144
Kimco Realty Corp.		22,788		411,096
Macerich Co.		7,778		368,444
Federal Realty Investment Trust		4,176		325,436
Realty Income Corp.		8,556		292,615
Developers Diversified Realty Corp.		20,178		284,308
Regency Centers Corp.		6,585		278,150
Taubman Centers, Inc.		4,959		250,330
Weingarten Realty Investors		10,514		249,813
CBL & Associates Properties, Inc.		12,932		226,310
National Retail Properties, Inc.		8,299		219,923
Tanger Factory Outlet Centers		4,197		214,844
Equity One, Inc.		11,408		207,397
Pennsylvania Real Estate Investment Trust		9,060		131,642
Acadia Realty Trust		6,903		125,911
Glimcher Realty Trust		14,094		118,390
Total Retail REITs				5,055,772
OFFICE REITS - 15.5%
Boston Properties, Inc.		5,947		512,037
SL Green Realty Corp.		5,142		347,136
Digital Realty Trust, Inc.		6,372		328,413
Alexandria Real Estate Equities, Inc.		4,136		303,003
Pediment Office Realty Trust, Inc. — Class A		13,470		271,286
Duke Realty Corp.		21,454		267,317
Mack-Cali Realty Corp.		7,315		241,834
BioMed Realty Trust, Inc.		12,677		236,426
Corporate Office Properties Trust		6,412		224,099
Highwoods Properties, Inc.		7,018		223,523
Douglas Emmett, Inc.		12,700		210,820
Kilroy Realty Corp.		5,710		208,244
Brandywine Realty Trust		16,583		193,192
Common Wealth REIT		6,984		178,162
Lexington Realty Trust		19,891		158,134
Total Office REITs				3,903,626
RESIDENTIAL REITS - 14.2%
Equity Residential		10,931		567,866
AvalonBay Communities, Inc.		4,092		460,555
UDR, Inc.		13,018		306,183
Camden Property Trust		5,356		289,117
Essex Property Trust, Inc.		2,531		289,091
Apartment Investment & Management Co. — Class A		9,944		256,953
BRE Properties, Inc.		5,728		249,168
American Campus Communities, Inc.		6,858		217,810
Mid-America Apartment Communities, Inc.		3,414		216,755
Home Properties, Inc.		3,860		214,191
Post Properties, Inc.		5,570		202,191
Equity Lifestyle Properties, Inc.		3,472		194,189
Associated Estates Realty Corp.		7,808		119,384
Total Residential REITs				3,583,453
MORTGAGE REITS - 7.2%
Annaly Capital Management, Inc.		27,325		489,664
MFA Financial, Inc.		27,356		223,225
American Capital Agency Corp.		6,854		196,984
Starwood Property Trust, Inc.		8,450		181,506
Hatteras Financial Corp.		5,654		171,147
Invesco Mortgage Capital, Inc.		6,817		148,883
Redwood Trust, Inc.		9,890		147,658
Anworth Mortgage Asset Corp.		19,160		134,120
Cypress Sharpridge Investments, Inc.		9,730		125,614
Total Mortgage REITs				1,818,801
DIVERSIFIED REITS - 6.1%
Vornado Realty Trust		7,023		585,227
Liberty Property Trust		8,954		285,812
Washington Real Estate Investment Trust		6,754		209,306

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   185

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

REAL ESTATE FUND

	Shares		Value
Colonial Properties Trust		9,645	$	174,092
PS Business Parks, Inc.		2,810		156,573
Cousins Properties, Inc.		17,019		141,938
Total Diversified REITs				1,552,948
INDUSTRIAL REITS - 5.2%
ProLogis		29,150		420,926
AMB Property Corp.		10,764		341,326
DuPont Fabros Technology, Inc.		7,844		166,842
DCT Industrial Trust, Inc.		26,099		138,586
EastGroup Properties, Inc.		3,224		136,440
First Industrial Realty Trust, Inc.*		13,621		119,320
Total Industrial REITs				1,323,440
FOREST PRODUCTS - 1.9%
Weyerhaeuser Co.		24,711		467,779
Total Real Estate Investment Trusts (REITs)				23,793,265
REAL ESTATE SERVICES - 2.6%
CB Richard Ellis Group, Inc. — Class A*		18,033		369,316
Jones Lang LaSalle, Inc.		3,297		276,684
Total Real Estate Services				646,000
REAL ESTATE OPERATING COMPANIES - 1.0%
Brookfield Properties Corp.		15,056		263,931
DIVERSIFIED REAL ESTATE ACTIVITIES - 0.8%
St. Joe Co.*		9,642		210,678
REAL ESTATE DEVELOPMENT - 0.7%
Howard Hughes Corp.*		3,090		168,158
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.7%
Forest City Enterprises, Inc. — Class A*		9,910		165,398
Total Common Stocks (Cost $14,505,309)				25,247,430

	Face
	Amount		Value
REPURCHASE AGREEMENT ††,1 - 0.2%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	52,790	$	52,790
Total Repurchase Agreement (Cost $52,790)				52,790
Total Investments - 100.2% (Cost $14,558,099)			$	25,300,220
Liabilities, Less Cash & Other Assets — (0.2)%				(38,240	)
Total Net Assets — 100.0%			$	25,261,980

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Repurchase Agreement — See Note 6.
	REIT — Real Estate Investment Trust

186   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	25,247,430
Repurchase agreement, at value		52,790
Total investments		25,300,220
Cash		1,728
Receivables:
Securities sold		579,099
Fund shares sold		35,399
Dividends		138,690
Total assets		26,055,136
Liabilities:
Payable for:
Fund shares redeemed		743,062
Management fees		18,417
Custodian fees		716
Transfer agent/maintenance fees		5,417
Investor service fees		5,417
Portfolio accounting fees		2,167
Other		17,960
Total liabilities		793,156
Net assets	$	25,261,980
Net assets consist of:
Paid in capital	$	32,171,613
Undistributed net investment income		497,372
Accumulated net realized loss on investments		(18,149,126	)
Net unrealized appreciation on investments		10,742,121
Net assets	$	25,261,980
Capital shares outstanding		964,334
Net asset value per share	$	26.20
Investments, at cost	$	14,505,309
Repurchase agreement, at cost		52,790
Total cost	$	14,558,099

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2,572)	$	1,047,130
Interest		227
Total investment income		1,047,357
Expenses:
Management fees		283,233
Transfer agent and administrative fees		83,304
Investor service fees		83,304
Portfolio accounting fees		33,321
Trustees’ fees*		4,120
Miscellaneous		62,702
Total expenses		549,984
Net investment income		497,373
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,163,334
Net realized gain		2,163,334
Net change in unrealized appreciation (depreciation) on:
Investments		1,676,248
Net change in unrealized appreciation (depreciation)		1,676,248
Net realized and unrealized gain		3,839,582
Net increase in net assets resulting from operations	$	4,336,955

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   187

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	497,373		$	575,246
Net realized gain (loss) on investments		2,163,334			(3,131,780	)
Net change in unrealized appreciation (depreciation) on investments		1,676,248			8,199,313
Net increase in net assets resulting from operations		4,336,955			5,642,779
Distributions to shareholders from:
Net investment income		(575,246	)		(674,166	)
Total distributions to shareholders		(575,246	)		(674,166	)
Capital share transactions:
Proceeds from sale of shares		159,529,139			111,717,937
Distributions reinvested		575,246			674,166
Cost of shares redeemed		(172,476,141	)		(98,925,973	)
Net increase (decrease) from capital share transactions		(12,371,756	)		13,466,130
Net increase (decrease) in net assets		(8,610,047	)		18,434,743
Net assets:
Beginning of year		33,872,027			15,437,284
End of year	$	25,261,980		$	33,872,027
Undistributed net investment income at end of year	$	497,372		$	575,245
Capital share activity:
Shares sold		6,687,209			6,121,767
Shares issued from reinvestment of distributions		22,818			33,408
Shares redeemed		(7,325,879	)		(5,456,422	)
Net increase (decrease) in shares		(615,852	)		698,753

188   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	21.44		$	17.51		$	34.35		$	50.25		$	40.30
Income (loss) from investment operations:
Net investment incomea		.35			.50			.79			.63			.72
Net gain (loss) on investments (realized and unrealized)		4.97			3.90			(15.47	)		(10.02	)		11.68
Total from investment operations		5.32			4.40			(14.68	)		(9.39	)		12.40
Less distributions from:
Net investment income		(.56	)		(.47	)		(.20	)		(1.09	)		(.83	)
Net realized gains		—			—			(1.96	)		(5.42	)		(1.62	)
Total distributions		(.56	)		(.47	)		(2.16	)		(6.51	)		(2.45	)
Net asset value, end of period	$	26.20		$	21.44		$	17.51		$	34.35		$	50.25
Total Returnb		24.86	%		25.27	%		(41.64	%)		(19.12	%)		30.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	25,262		$	33,872		$	15,437		$	31,757		$	83,181
Ratios to average net assets:
Net investment income		1.49	%		2.83	%		2.61	%		1.28	%		1.54	%
Total expenses		1.65	%		1.65	%		1.62	%		1.60	%		1.60	%
Portfolio turnover rate		394	%		450	%		288	%		226	%		532	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   189

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond to a benchmark for U.S. Government securities. The Fund’s current benchmark is 120% of the price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S.Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond.

Inception: August 18, 1997

The 30-year bond began 2010 with a yield of 4.64% and ended the year about where it started. Yields fell for most of the year due to safe-haven buying amid concerns about European debt crisis and the potential for a U.S. double-dip recession. But the Fed’s quantitative easing and passage of a tax cut helped push up yields in the last few weeks of the year, as concerns rose that the gradually improving economy and asset purchases by the Fed could stoke inflation.

Despite faltering as the year drew to a close, the overall solid performance of Treasuries in 2010 helped the Government Long Bond 1.2x Strategy Fund close up 10.14% for the year.

Derivatives in the Fund are used to provide additional exposure to composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
December 31, 2000 – December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

	1 Year			5 Year			10 Year
GOVERNMENT LONG BOND 1.2x STRATEGY FUND		10.14	%		3.04	%		4.81	%
PRICE MOVEMENT OF LONG TREASURY BOND*		2.77	%		-2.65	%		-0.18	%
BARCLAYS CAPITAL LONG TREASURY BOND INDEX		9.38	%		5.73	%		6.57	%

* Does not reflect any interest.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Barclays Capital Long Treasury Bond Index is an unmanaged bond index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported return. The price movement of the Long Treasury Bond represents a cumulative percentage change in its closing price. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in U.S. Government securities and in derivative instruments such as futures.

190   |   the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 41.6%
Fannie Mae1 0.09% due 01/05/11	$	2,000,000	$	1,999,980
Federal Home Loan Bank2 0.13% due 01/05/11		2,000,000		1,999,971
Farmer Mac 0.08% due 01/18/11		2,000,000		1,999,925
Freddie Mac1 0.05% due 01/03/11		1,000,000		999,997
Total Federal Agency Discount Notes (Cost $6,999,873)				6,999,873
U.S. GOVERNMENT SECURITIES† - 23.7%
U.S. Treasury Bond 4.25% due 11/15/40		4,054,000		3,986,856
Total U.S. Government Securities (Cost $3,900,067)				3,986,856
REPURCHASE AGREEMENTS††,3 - 13.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11		590,036		590,036
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		588,321		588,321
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		563,107		563,107
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		563,107		563,107
Total Repurchase Agreements (Cost $2,304,571)				2,304,571
Total Investments - 79.0% (Cost $13,204,511)			$	13,291,300
Cash & Other Assets, Less Liabilities – 21.0%				3,541,339
Total Net Assets – 100.0%			$	16,832,639

			Unrealized
	Contracts		Gain
FUTURES CONTRACTS PURCHASED†
March 2011 Ultra Long-Term U.S. Treasury Bond Futures Contracts (Aggregate Value of Contracts $21,092,375)		166	$	221,019

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Repurchase Agreements — See Note 6.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   191

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	10,986,729
Repurchase agreements, at value		2,304,571
Total investments		13,291,300
Segregated cash with broker		405,150
Receivables:
Variation margin		194,109
Securities sold		2,094,722
Fund shares sold		880,936
Interest		34,130
Total assets		16,900,347
Liabilities:
Overdraft due to custodian bank		86
Payable for:
Fund shares redeemed		3,961
Management fees		9,885
Custodian fees		654
Transfer agent/maintenance fees		3,954
Investor service fees		4,942
Portfolio accounting fees		1,977
Other		42,249
Total liabilities		67,708
Net assets	$	16,832,639
Net assets consist of:
Paid in capital	$	23,940,280
Undistributed net investment income		—
Accumulated net realized loss on investments		(7,415,449	)
Net unrealized appreciation on investments		307,808
Net assets	$	16,832,639
Capital shares outstanding		2,369,953
Net asset value per share	$	7.10
Investments, at cost	$	10,899,940
Repurchase agreements, at cost		2,304,571
Total cost	$	13,204,511

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Interest	$	1,614,821
Total investment income		1,614,821
Expenses:
Management fees		222,136
Transfer agent and administrative fees		88,855
Investor service fees		111,068
Portfolio accounting fees		44,427
Trustees’ fees*		4,824
Printing fees		30,493
Miscellaneous		52,289
Total expenses		554,092
Net investment income		1,060,729
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(644,817	)
Futures contracts		570,399
Net realized loss		(74,418	)
Net change in unrealized appreciation (depreciation) on:
Investments		83,488
Futures contracts		537,041
Net change in unrealized appreciation (depreciation)		620,529
Net realized and unrealized gain		546,111
Net increase in net assets resulting from operations	$	1,606,840

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

192   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	1,060,729		$	819,528
Net realized loss on investments		(74,418	)		(5,003,952	)
Net change in unrealized appreciation (depreciation) on investments		620,529			(12,040,892	)
Net increase (decrease) in net assets resulting from operations		1,606,840			(16,225,316	)
Distributions to shareholders from:
Net investment income		(1,069,767	)		(812,130	)
Net realized gains		—			(14,815,101	)
Total distributions to shareholders		(1,069,767	)		(15,627,231	)
Capital share transactions:
Proceeds from sale of shares		646,517,465			381,138,369
Distributions reinvested		1,069,678			15,627,099
Cost of shares redeemed		(655,383,267	)		(404,415,440	)
Net decrease from capital share transactions		(7,796,124	)		(7,649,972	)
Net decrease in net assets		(7,259,051	)		(39,502,519	)
Net assets:
Beginning of year		24,091,690			63,594,209
End of year	$	16,832,639		$	24,091,690
Undistributed net investment income at end of year	$	—		$	7,398
Capital share activity:
Shares sold		89,845,379			33,665,126
Shares issued from reinvestment of distributions		152,743			2,156,176
Shares redeemed		(91,283,305	)		(35,854,023	)
Net increase (decrease) in shares		(1,285,183	)		(32,721	)

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report   |   193

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	6.59		$	17.24		$	12.24		$	11.56		$	12.38
Income (loss) from investment operations:
Net investment incomea		.17			.28			.35			.41			.42
Net gain (loss) on investments (realized and unrealized)		.50			(5.33	)		5.00			.68			(.82	)
Total from investment operations		.67			(5.05	)		5.35			1.09			(.40	)
Less distributions from:
Net investment income		(.16	)		(.28	)		(.35	)		(.41	)		(.42	)
Net realized gains		—			(5.32	)		—			—			—
Total distributions		(.16	)		(5.60	)		(.35	)		(.41	)		(.42	)
Net asset value, end of period	$	7.10		$	6.59		$	17.24		$	12.24		$	11.56
Total Returnb		10.14	%		(31.54	%)		44.87	%		9.77	%		(3.14	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,833		$	24,092		$	63,594		$	52,250		$	50,420
Ratios to average net assets:
Net investment income		2.39	%		2.29	%		2.75	%		3.60	%		3.66	%
Total expenses		1.25	%		1.26	%		1.22	%		1.20	%		1.20	%
Portfolio turnover rate		2,452	%		1,694	%		1,372	%		1,367	%		1,339	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

194   |   the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: Seeks to provide total returns that inversely correlate to the price movements of a benchmark for U.S.Treasury debt instruments or futures contract on a specified debt instrument. The Fund’s current benchmark is the inverse (opposite) of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S.Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond.

Inception: May 1, 2003

The 30-year bond began 2010 with a yield of 4.64% and ended the year about where it started. Yields fell for most of the year due to safe-haven buying amid concerns about European debt crisis and the potential for a U.S. double-dip recession. But the Fed’s quantitative easing and passage of a tax cut helped push up yields in the last few weeks of the year, as concerns rose that the gradually improving economy and asset purchases by the Fed could stoke inflation.

The overall solid performance of Treasuries in 2010 caused the Inverse Government Long Bond Strategy Fund to move negatively in the higher price/lower yield environment, allowing the Fund to close down 12.81% for the year.

Derivatives in the Fund are used to help provide exposure to the composition of the benchmark in the highest efficient manner and to provide leverage, not for hedging purposes.

Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings to ensure that they are consistent with their strategies, as frequently as daily.

The effects of compounding may cause the longer-term correlation of the fund to its benchmark to diminish. The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 1, 2003 — December 31, 2010

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/10

							Since Inception
	1 Year			5 Year			(05/01/03)
INVERSE GOVERNMENT LONG BOND STRATEGY FUND		-12.81	%		-5.59	%		-5.84	%
PRICE MOVEMENT OF LONG TREASURY BOND*		2.77	%		-2.65	%		-1.35	%
BARCLAYS CAPITAL LONG TREASURY BOND INDEX		9.38	%		5.73	%		5.58	%

* Does not reflect any interest.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Barclays Capital Long Treasury Bond Index is an unmanaged bond index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported return. The price movement of the Long Treasury Bond represents a cumulative percentage change in its closing price. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in short sales and derivative instruments such as futures contracts, and options on index futures.

the RYDEX | SGI variable trust annual report | 195

SCHEDULE OF INVESTMENTS December 31, 2010

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 46.6%
Federal Farm Credit Bank1
0.15% due 01/05/11	$	2,000,000	$	1,999,994
Farmer Mac1
0.16% due 01/12/11		2,000,000		1,999,974
Federal Home Loan Bank1
0.08% due 01/21/11		1,000,000		999,958
0.17% due 01/10/11		1,000,000		999,958
Freddie Mac2
0.05% due 01/03/11		1,000,000		999,997
Fannie Mae2
0.09% due 01/05/11		1,000,000		999,990
Total Federal Agency Discount Notes (Cost $7,999,772)				7,999,871
WORLD BANK DISCOUNT NOTE†† - 11.6%
World Bank
0.20% due 01/05/11		2,000,000		1,999,994
Total World Bank Discount Note (Cost $1,999,956)				1,999,994
REPURCHASE AGREEMENTS†† - 151.8%
Joint Repurchase Agreements3
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11		2,366,860		2,366,860
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		2,359,979		2,359,979
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		2,258,837		2,258,837
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		2,258,837		2,258,837
Individual Repurchase Agreement4
Barclays Capital issued 12/31/10 at 0.07% due 01/03/11 (Secured by a U.S. Treasury Bond, at a rate of 4.26% and maturing 11/15/40 as collateral with a Value of 17,168,314) to be repurchased at 16,831,778		16,831,680		16,831,680
Total Repurchase Agreements (Cost $26,076,193)				26,076,193
Total Long Investments - 210.0% (Cost $36,075,921)			$	36,076,058
U.S. GOVERNMENT SECURITIES SOLD SHORT† - (92.9)%
U.S. Treasury Bond
4.25% due 11/15/40	$	16,233,000	$	(15,964,141	)
Total U.S. Government Securities Sold Short (Proceeds $16,244,440)				(15,964,141	)
Liabilities, Less Cash &
Other Assets — (17.1)%				(2,931,298	)
Total Net Assets — 100.0%			$	17,180,619

			Unrealized
	Contracts		Loss
FUTURES CONTRACTS SOLD SHORT†
March 2011 Ultra Long-Term
U.S. Treasury Bond Futures Contracts (Aggregate Value of Contracts $2,160,063)		17	$	(41,049	)

†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
3	Repurchase Agreements — See Note 6.
4	All or portion of this security is pledged as short security collateral at December 31, 2010

196 | the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	9,999,865
Repurchase agreements, at value		26,076,193
Total investments		36,076,058
Segregated cash with broker		62,050
Receivables:
Fund shares sold		15,990
Interest		62
Total assets		36,154,160
Liabilities:
Securities sold short, at value		15,964,141
Payable for:
Variation margin		29,219
Securities purchased		1,278,469
Fund shares redeemed		1,562,359
Management fees		15,369
Custodian fees		564
Transfer agent/maintenance fees		4,269
Investor service fees		4,269
Portfolio accounting fees		1,708
Short sales interest		96,746
Other		16,428
Total liabilities		18,973,541
Net Assets	$	17,180,619
Net Assets Consist Of:
Paid in capital	$	30,245,098
Accumulated net investment loss		—
Accumulated net realized loss on investments		(13,303,866	)
Net unrealized appreciation on investments		239,387
Net assets	$	17,180,619
Capital shares outstanding		1,213,365
Net asset value per share	$	14.16
Investments, at cost	$	9,999,728
Repurchase agreements, at cost		26,076,193
Total cost	$	36,075,921
Securities sold short, proceeds		16,244,440

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Interest	$	35,368
Total investment income		35,368
Expenses:
Management fees		167,762
Transfer agent and administrative fees		46,601
Investor service fees		46,601
Portfolio accounting fees		18,640
Trustees’ fees*		2,246
Short sales interest expense		671,909
Miscellaneous		35,115
Total expenses		988,874
Net investment loss		(953,506	)
Net Realized And Unrealized Gain (loss):
Net realized gain (loss) on:
Futures contracts		(155,206	)
Securities sold short		(658,916	)
Net realized loss		(814,122	)
Net change in unrealized appreciation (depreciation) on:
Securities sold short		(551,066	)
Futures contracts		(316,831	)
Net change in unrealized appreciation (depreciation)		(867,897	)
Net realized and unrealized loss		(1,682,019	)
Net decrease in net assets resulting from operations	$	(2,635,525	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report | 197

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(953,506	)	$	(424,042	)
Net realized gain (loss) on investments		(814,122	)		2,762,077
Net change in unrealized appreciation (depreciation) on investments		(867,897	)		934,857
Net increase (decrease) in net assets resulting from operations		(2,635,525	)		3,272,892
Distributions To Shareholders		—			—
Capital Share Transactions:
Proceeds from sale of shares		461,891,203			325,040,627
Cost of shares redeemed		(470,014,885	)		(310,998,588	)
Net increase (decrease) from capital share transactions		(8,123,682	)		14,042,039
Net increase (decrease) in net assets		(10,759,207	)		17,314,931
Net Assets:
Beginning of year		27,939,826			10,624,895
End of year	$	17,180,619		$	27,939,826
Accumulated net investment loss at end of year	$	—		$	—
Capital Share Activity:
Shares sold		32,095,890			20,562,501
Shares redeemed		(32,603,212	)		(19,623,167	)
Net increase (decrease) in shares		(507,322	)		939,334

198 | the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	16.24		$	13.60		$	19.58		$	21.55		$	20.80
Income (loss) from investment operations:
Net investment income (loss)a		(.73	)		(.33	)		(.21	)		.70			.69
Net gain (loss) on investments (realized and unrealized)		(1.35	)		2.97			(5.68	)		(1.67	)		.97
Total from investment operations		(2.08	)		2.64			(5.89	)		(.97	)		1.66
Less distributions from:
Net investment income		—			—			(.09	)		(1.00	)		(.91	)
Total distributions		—			—			(.09	)		(1.00	)		(.91	)
Net asset value, end of period	$	14.16		$	16.24		$	13.60		$	19.58		$	21.55
Total Returnb		(12.81	%)		19.41	%		(30.21	%)		(4.51	%)		8.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,181		$	27,940		$	10,625		$	17,611		$	29,246
Ratios to average net assets:
Net investment income (loss)		(5.12	%)		(2.09	%)		(1.12	%)		3.17	%		3.08	%
Total expenses		5.31	%		2.23	%		4.12	%		3.83	%		5.12	%
Operating expensesc		1.70	%		1.71	%		1.65	%		1.63	%		1.63	%
Portfolio turnover rate		3,555	%		—			2,851	%		1,123	%		597	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Operating expenses exclude interest and dividend expense from securities sold short.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report | 199

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: Seeks to provide security of principal, high current income, and liquidity.

Inception: May 7, 1997

For the year ended December 31, 2010, U.S. Government Money Market Fund had a total return of 0.01%.

Money market yields continued to languish in the low-interest rate environment maintained by the Fed, which has continued to keep short-term rates at 0.0% to 0.25%. Hundreds of billions of dollars have moved out of money market funds in the past year in search of better yields.

The President’s Working Group on Financial Markets released a report detailing a number of options for reforms related to money market funds in October, which were designed to address the vulnerabilities of money market funds that contributed to the financial crisis in 2008. The Securities and Exchange Commission called for reforms, now in place, to mitigate the systemic risk associated with money market funds and reduce their susceptibility to runs.

According to the Investment Company Institute, money market fund assets slid to $2.8 trillion in 2010, from more than $3.3 trillion at the end of November 2009.

Performance displayed represents past performance which is no guarantee of future results.

AVERAGE ANNUAL RETURNS FOR THE PERIODS ENDED 12/31/2010

	1 Year			5 Year			10 Year
U.S. GOVERNMENT MONEY MARKET FUND		0.01	%		1.77	%		1.43	%

Holdings Diversification (Market Exposure as % of Net Assets)

The Fund invests primarily in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities.

200 | the RYDEX | SGI variable trust annual report

SCHEDULE OF INVESTMENTS

December 31, 2010

U.S. GOVERNMENT MONEY MARKET FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 24.0%
Freddie Mac1
0.18% due 04/26/11	$	10,000,000	$	9,994,250
0.17% due 08/16/11		10,000,000		9,985,497
Fannie Mae1
0.14% due 03/30/11		10,000,000		9,996,456
0.20% due 07/11/11		5,000,000		4,994,694
Federal Home Loan Bank2
0.25% due 06/24/11		15,000,000		14,981,875
Total Federal Agency Discount Notes (Cost $49,952,772)				49,952,772
FEDERAL AGENCY NOTE†† - 4.8%
Federal Home Loan Bank2
0.58% due 06/10/11		10,000,000		10,015,750
Total Federal Agency Note (Cost $10,015,750)				10,015,750
WORLD BANK DISCOUNT NOTE†† - 4.8%
World Bank Discount Note
0.21% due 04/01/11	$	10,000,000	$	9,994,750
Total World Bank Discount Note (Cost $9,994,750)				9,994,750
REPURCHASE AGREEMENTS††,3 - 64.3%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11		34,179,598		34,179,598
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		34,080,218		34,080,218
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		32,619,636		32,619,636
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		32,619,636		32,619,636
Total Repurchase Agreements (Cost $133,499,088)				133,499,088
Total Investments - 97.9% (Cost $203,462,360)			$	203,462,360
Other Assets,
Less Liabilities — 2.1%				4,319,870
Total Net Assets — 100.0%			$	207,782,230

††	Value determined based on Level 2 inputs — See Note 7.
1	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	Repurchase Agreements — See Note 6.

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report | 201

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	69,963,272
Repurchase agreements, at value		133,499,088
Total investments		203,462,360
Receivables:
Fund shares sold		4,929,098
Interest		3,921
Total assets		208,395,379
Liabilities:
Payable for:
Fund shares redeemed		343,065
Custodian fees		5,788
Portfolio accounting fees		375
Other		263,921
Total liabilities		613,149
Net Assets	$	207,782,230
Net Assets Consist Of:
Paid in capital	$	207,774,855
Undistributed net investment income		7,375
Accumulated net realized loss on investments		—
Net unrealized appreciation on investments		—
Net assets	$	207,782,230
Capital shares outstanding		207,794,456
Net asset value per share	$	1.00
Investments, at cost	$	69,963,272
Repurchase agreements, at cost		133,499,088
Total cost	$	203,462,360

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Interest	$	457,330
Total investment income		457,330
Expenses:
Management fees		1,223,737
Transfer agent and administrative fees		489,500
Investor service fees		611,869
Portfolio accounting fees		240,422
Trustees’ fees*		28,788
Audit and outside service fees		169,348
Printing fees		186,513
Miscellaneous		104,092
Total expenses		3,054,269
Less:
Expenses waived by Service Company		(700,035	)
Expenses waived by Distributor		(611,874	)
Expenses waived/reimbursed by Advisor		(1,298,431	)
Total waived expenses		(2,610,340	)
Net expenses		443,929
Net investment income		13,401
Net increase in net assets resulting from operations	$	13,401

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

202 | the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (decrease) In Net Assets From Operations:
Net investment income	$	13,401		$	61,155
Net realized gain on investments		—			7,951
Net increase in net assets resulting from operations		13,401			69,106
Distributions To Shareholders From:
Net investment income		(13,400	)		(61,159	)
Net realized gains		(7,879	)		(76,221	)
Total distributions to shareholders		(21,279	)		(137,380	)
Capital Share Transactions:
Proceeds from sale of shares		920,292,877			1,108,889,448
Distributions reinvested		21,279			137,380
Cost of shares redeemed		(943,975,363	)		(1,238,453,140	)
Net decrease from capital share transactions		(23,661,207	)		(129,426,312	)
Net decrease in net assets		(23,669,085	)		(129,494,586	)
Net Assets:
Beginning of year		231,451,315			360,945,901
End of year	$	207,782,230		$	231,451,315
Undistributed net investment income at end of year	$	7,375		$	7,493
Capital Share Activity:
Shares sold		920,292,876			1,108,889,442
Shares issued from reinvestment of distributions		21,280			137,382
Shares redeemed		(943,975,363	)		(1,238,453,140	)
Net decrease in shares		(23,661,207	)		(129,426,316	)

See Notes to Financial Statements. the RYDEX | SGI variable trust annual report | 203

U.S. GOVERNMENT MONEY MARKET FUND

FINANCIAL HIGH LIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment incomea		—	b		—	b		.01			.04			.04
Net gain on investments (realized and unrealized)		—			—	b		—	b		—			—
Total from investment operations		—	b		—	b		.01			.04			.04
Less distributions from:
Net investment income		—	b		—	b		(.01	)		(.04	)		(.04	)
Total distributions		—	b		—	b		(.01	)		(.04	)		(.04	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Returnc		0.01	%		0.06	%		1.14	%		3.90	%		3.82	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	207,782		$	231,451		$	360,946		$	277,346		$	208,148
Ratios to average net assets:
Net investment income		0.01	%		0.02	%		1.09	%		3.80	%		3.78	%
Total expenses		1.25	%		1.28	%		1.22	%		1.19	%		1.19	%
Net expensesd		0.18	%		0.54	%		1.22	%		1.19	%		1.19	%
Portfolio turnover rate		—			—			—			—			—

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Less than $0.01 per share.
c	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
d	Net expense information reflects the expense ratios after voluntary expense waivers/reimbursements.

204 | the RYDEX | SGI variable trust annual report See Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies Organization

The Rydex Variable Trust (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company and is authorized to issue an unlimited number of no par value shares. The Trust offers shares of the funds to insurance companies for their variable annuity and variable life insurance contracts.

At December 31, 2010, the Trust consisted of fifty-eight separate funds. This report covers the Benchmark and the Money Market funds (the “Funds”), while the other funds are contained in separate reports.

Security Global Investors (“SGI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (“RDL”) acts as principal underwriter for the Trust. SGI, RFS and RDL are affiliated entities.

Significant Accounting Policies

The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The information contained in these notes may not apply to every Fund in the Trust. All time references are based on Eastern Time.

A. Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. (Eastern Time) on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

The value of futures contracts purchased and sold by the Trust is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act.

Debt securities in a non 2a-7 money market fund with a maturity greater than 60 days at the time of purchase are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a debt security is valued at the reported bid price, at the close of business. Short-term debt securities with a maturity of 60 days or less at the time of purchase and repurchase agreements are valued at amortized cost, which approximates market value.

Open-end investment companies (“Mutual Funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange Traded Funds (“ETFs”) and closed-end investment companies are valued at the last quoted sales price.

The value of domestic equity index swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the last quoted value of the index that the swap pertains to at the close of the NYSE. The swap’s market value is then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements. The value of currency index swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the broker quote.

The value of foreign equity swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the price at which orders are being filled at the close of the NYSE. In the event that no order is filled at 4:00 p.m., the security dealer provides a fair value quote at which the swap agreement is valued. The swap’s market value is then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair valued as determined in good faith by SGI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related markets.

B. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend

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NOTES TO FINANCIAL STATEMENTS (continued)

date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Net investment income is computed and dividends are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. Income dividends in these Funds are accrued daily. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions from net investment income in the remaining Funds and distributions from net realized gains, if any, in all Funds, are declared at least annually and recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. When a Fund engages in a short sale of an equity or fixed income security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales. The Fund is exposed to market risk based on the amount, if any, that the market value of the security exceeds the market value of the securities in the segregated account. Fees, if any, paid to brokers to borrow securities in connection with short sales are considered part of the cost of short sale transactions. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the treasury obligation to the lender and record this as an expense. Short dividends or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

E. Certain Funds entered into stock, bond and currency index futures contracts. Futures contracts are contracts for delayed delivery of securities at a specified future delivery date and at a specific price. Upon entering into a contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The following Funds entered into futures contracts for the following purposes:

	Index
Fund	Exposure		Liquidity
Nova Fund		x		x
Inverse S&P 500 Strategy Fund		x		x
NASDAQ-100® Fund		x		x
Inverse NASDAQ-100® Strategy Fund		x		x
S&P 500 2x Strategy Fund		x		x
NASDAQ-100® 2x Strategy Fund		x		x
Mid-Cap 1.5x Strategy Fund		x		x
Inverse Mid-Cap Strategy Fund		x		x
Russell 2000® 2x Strategy Fund		x		x
Russell 2000® 1.5x Strategy Fund		x		x
Inverse Russell 2000® Strategy Fund		x		x
Dow 2x Strategy Fund		x		x
Inverse Dow 2x Strategy Fund		x		x
Europe 1.25x Strategy Fund		x		x
Japan 2x Strategy Fund		x		x
Strengthening Dollar 2x Strategy Fund		x		x
Weakening Dollar 2x Strategy Fund		x		x
Government Long Bond 1.2x Strategy Fund		x		x
Inverse Government Long Bond Strategy Fund		x		x

F. Certain Funds entered into domestic equity index and domestic currency index swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified equity security, basket of equity securities, equity index or domestic currency index, in return for periodic payments based on a fixed or variable interest rate or the change in market value of a different equity security, basket of equity securities, equity index or domestic currency index. Swap agreements are used to obtain exposure to an equity or market without owning or taking physical custody of securities. The swap agreements are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

The following Funds entered into swap agreements for the following purposes:

	Index
Fund	Exposure		Liquidity
Nova Fund		x		x
Inverse S&P 500 Strategy Fund		x		x
NASDAQ-100® Fund		x		x
Inverse NASDAQ-100® Strategy Fund		x		x
S&P 500 2x Strategy Fund		x		x
NASDAQ-100® 2x Strategy Fund		x		x
Mid-Cap 1.5x Strategy Fund		x		x
Inverse Mid-Cap Srtategy Fund		x		x
Russell 2000® 2x Strategy Fund		x		x
Russell 2000® 1.5x Strategy Fund		x		x
Inverse Russell 2000® Strategy Fund		x		x
Dow 2x Strategy Fund		x		x

206    |    the RYDEX | SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

	Index
Fund	Exposure		Liquidity
Inverse Dow 2x Strategy Fund		x		x
Strengthening Dollar 2x Strategy Fund		x		x
Weakening Dollar 2x Strategy Fund		x		x

G. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

H. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the discount rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity. The Funds may also purchase American Depository Receipts, U.S. Government securities, Commercial Paper and enter into repurchase agreements.

I. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate. Segregated cash with the broker is held as collateral for investments in derivative instruments such as futures contracts and index swap agreements.

J. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments

As part of its investment strategy, the Funds utilized short sales and a variety of derivative instruments, including futures and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

A short sale is a transaction in which a Fund sells an equity or fixed income security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, that Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, that Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

There are several risks in connection with the use of futures contracts. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

There are several risks associated with the use of swap agreements that are different from those associated with ordinary portfolio securities transactions, due to the fact they could be considered illiquid. Although the Trust will not enter into any swap agreement unless SGI believes that the other party to the transaction is creditworthy, the Funds bear the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of the agreement counterparty.

In conjunction with the use of short sales, futures and swap agreements, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each Fund.

The risks inherent in the use of short sales, futures contracts and swap agreements, include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; iii) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles require enhanced disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivatives instruments are

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NOTES TO FINANCIAL STATEMENTS (continued)

accounted for and their effects on the Funds’ financial position and results of operations. None of the derivatives currently held by the Funds are being used as hedging instruments.

During the year ended December 31, 2010, certain Funds sought to gain exposure to their respective benchmarks by investing in commodity, currency, and financial-linked derivative instruments, including swap agreements and futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Funds’ net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage of Fund’s
Fund	net assets on a daily basis
Nova Fund		75	%
Inverse S&P 500 Strategy Fund		100	%
NASDAQ-100® Fund		35	%
Inverse NASDAQ-100® Strategy Fund		100	%
S&P 500 2x Strategy Fund		160	%
NASDAQ-100® 2x Strategy Fund		165	%
Mid-Cap 1.5x Strategy Fund		100	%
Inverse Mid-Cap Strategy Fund		100	%
Russell 2000® 2x Strategy Fund		185	%
Russell 2000® 1.5x Strategy Fund		140	%
Inverse Russell 2000® Strategy Fund		100	%
Dow 2x Strategy Fund		155	%
Inverse Dow 2x Strategy Fund		200	%
Europe 1.25x Strategy Fund		130	%
Japan 2x Strategy Fund		200	%
Strengthening Dollar 2x Strategy Fund		200	%
Weakening Dollar 2x Strategy Fund		200	%
Government Long Bond 1.2x Strategy Fund		125	%
Inverse Government Long Bond Strategy Fund		15	%

The following is a summary of the location of derivative investments on the Fund’s Statements of Assets and Liabilities as of December 31, 2010:

Location on the Statements of Assets and Liabilities

Derivative Investments Type	Asset Derivatives	Liability Derivatives
Equity/Currency contracts	Variation margin Unrealized appreciation on swap agreements	Variation margin Unrealized depreciation on swap agreements
Interest Rate contracts	Variation margin	Variation margin

The following table sets forth the fair value of the Fund’s derivative investments categorized by primary risk exposure at December 31, 2010:

	Asset Derivative Investments Value
	Futures		Swaps		Futures		Swaps		Futures
	Equity		Equity		Currency		Currency		Interest Rate		Total Value at
Fund	Contracts*		Contracts		Contracts*		Contracts		Contracts*		December 31, 2010
Nova Fund	$	120,992	$	4,366	$	—	$	—	$	—	$	125,358
Inverse S&P 500 Strategy Fund		—		—		—		—		—		—
NASDAQ-100® Fund		19,600		—		—		—		—		19,600
Inverse NASDAQ-100® Strategy Fund		1,069		36,068		—		—		—		37,137
S&P 500 2x Strategy Fund		68,400		6,073		—		—		—		74,473
NASDAQ-100 2x Strategy Fund		67,345		—		—		—		—		67,345
Mid-Cap 1.5x Strategy Fund		97,201		—		—		—		—		97,201
Inverse Mid-Cap Strategy Fund		532		9,913		—		—		—		10,445
Russell 2000® 2x Strategy Fund		18,426		—		—		—		—		18,426
Russell 2000® 1.5x Strategy Fund		20,147		—		—		—		—		20,147

208    |    the RYDEX | SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

	Asset Derivative Investments Value
	Futures		Swaps		Futures		Swaps		Futures
	Equity		Equity		Currency		Currency		Interest Rate		Total Value at
Fund	Contracts*		Contracts		Contracts*		Contracts		Contracts*		December 31, 2010
Inverse Russell 2000® Strategy Fund	$	6,748	$	20,602	$	—	$	—	$	—	$	27,350
Dow 2x Strategy Fund		28,965		20,187		—		—		—		49,152
Inverse Dow 2x Strategy Fund		—		—		—		—		—		—
Europe 1.25x Strategy Fund		—		—		73,723		—		—		73,723
Japan 2x Strategy Fund		—		—		340,218		—		—		340,218
Strengthening Dollar 2x Strategy Fund		—		—		—		—		—		—
Weakening Dollar 2x Strategy Fund		—		—		65,221		13,390		—		78,611
Government Long Bond 1.2x Strategy Fund		—		—		—		—		221,019		221,019
Inverse Government Long Bond Strategy Fund		—		—		—		—		—		—

	Liability Derivative Investments Value
	Futures		Swaps		Futures		Swaps		Futures
	Equity		Equity		Currency		Currency		Interest Rate		Total Value at
Fund	Contracts*		Contracts		Contracts*		Contracts		Contracts*		December 31, 2010
Nova Fund	$	—	$	—	$	—	$	—	$	—	$	—
Inverse S&P 500 Strategy Fund		1,320		5,464		—		—		—		6,784
NASDAQ-100® Fund		—		68,171		—		—		—		68,171
Inverse NASDAQ-100® Strategy Fund		—		—		—		—		—		—
S&P 500 2x Strategy Fund		—		1,344		—		—		—		1,344
NASDAQ-100® 2x Strategy Fund		—		221,777		—		—		—		221,777
Mid-Cap 1.5x Strategy Fund		—		44,856		—		—		—		44,856
Inverse Mid-Cap Strategy Fund		—		—		—		—		—		—
Russell 2000® 2x Strategy Fund		—		78,200		—		—		—		78,200
Russell 2000® 1.5x Strategy Fund		—		180,472		—		—		—		180,472
Inverse Russell 2000® Strategy Fund		—		—		—		—		—		—
Dow 2x Strategy Fund		—		—		—		—		—		—
Inverse Dow 2x Strategy Fund		173		59,759		—		—		—		59,932
Europe 1.25x Strategy Fund		65,862		—		—		—		—		65,862
Japan 2x Strategy Fund		43,203		—		—		—		—		43,203
Strengthening Dollar 2x Strategy Fund		—		—		137,638		9,774		—		147,412
Weakening Dollar 2x Strategy Fund		—		—		—		—		—		—
Government Long Bond 1.2x Strategy Fund		—		—		—		—		—		—
Inverse Government Long Bond Strategy Fund		—		—		—		—		41,049		41,049

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund’s Statements of Operations for the year ended December 31, 2010:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts and equity index swaps
	Net change in unrealized appreciation (depreciation) on futures contracts and equity index swaps
Currency contracts	Net realized gain (loss) on futures contracts and currency index swaps
	Net change in unrealized appreciation (depreciation) on futures contracts and currency index swaps
Interest rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts

the RYDEX | SGI variable trust annual report    |    209

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure for the year ended December 31, 2010:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations

	Futures			Swaps			Futures			Swaps			Futures
	Equity			Equity			Currency			Currency			Interest Rate
Fund	Contracts			Contracts			Contracts			Contracts			Contracts			Total
Nova Fund	$	1,837,860		$	2,415,941		$	—		$	—		$	—		$	4,253,801
Inverse S&P 500 Strategy Fund		(2,996,271	)		(11,166,945	)		—			—			—			(14,163,216	)
NASDAQ-100® Fund		1,003,277			1,328,154			—			—			—			2,331,431
Inverse NASDAQ-100® Strategy Fund		(186,496	)		(3,948,517	)		—			—			—			(4,135,013	)
S&P 500 2x Strategy Fund		440,521			2,795,470			—			—			—			3,235,991
NASDAQ-100® 2x Strategy Fund		5,349			7,828,661			—			—			—			7,834,010
Mid-Cap 1.5x Strategy Fund		387,726			2,737,371			—			—			—			3,125,097
Inverse Mid-Cap Strategy Fund		(413,556	)		(1,531,197	)		—			—			—			(1,944,753	)
Russell 2000® 2x Strategy Fund		63,270			1,166,671			—			—			—			1,229,941
Russell 2000® 1.5x Strategy Fund		43,437			2,067,040			—			—			—			2,110,477
Inverse Russell 2000® Strategy Fund		(1,343,263	)		(2,171,109	)		—			—			—			(3,514,372	)
Dow 2x Strategy Fund		502,141			1,709,273			—			—			—			2,211,414
Inverse Dow 2x Strategy Fund		(878,617	)		(5,111,762	)		—			—			—			(5,990,379	)
Europe 1.25x Strategy Fund		(299,173	)		—			(1,040,078	)		—			—			(1,339,251	)
Japan 2x Strategy Fund		(689,604	)		—			1,270,457			—			—			580,853
Strengthening Dollar 2x Strategy Fund		—			—			159,413			(461,328	)		—			(301,915	)
Weakening Dollar 2x Strategy Fund		—			—			(480,538	)		(299,127	)		—			(779,665	)
Government Long Bond 1.2x Strategy Fund		—			—			—			—			570,399			570,399
Inverse Government Long Bond Strategy Fund		—			—			—			—			(155,206	)		(155,206	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations

	Futures			Swaps			Futures			Swaps			Futures
	Equity			Equity			Currency			Currency			Interest Rate
Fund	Contracts			Contracts			Contracts			Contracts			Contracts			Total
Nova Fund	$	74,099		$	(564,030	)	$	—		$	—		$	—		$	(489,931	)
Inverse S&P 500 Strategy Fund		33,367			298,834			—			—			—			332,201
NASDAQ-100® Fund		(19,833	)		(95,735	)		—			—			—			(115,568	)
Inverse NASDAQ-100® Strategy Fund		(2,463	)		510,271			—			—			—			507,808
S&P 500 2x Strategy Fund		104,574			(243,153	)		—			—			—			(138,579	)
NASDAQ-100® 2x Strategy Fund		(480,346	)		(1,278,258	)		—			—			—			(1,758,604	)
Mid-Cap 1.5x Strategy Fund		75,794			(525,961	)		—			—			—			(450,167	)
Inverse Mid-Cap Strategy Fund		253			150,098			—			—			—			150,351
Russell 2000® 2x Strategy Fund		(15,923	)		(182,014	)		—			—			—			(197,937	)
Russell 2000® 1.5x Strategy Fund		(1,470	)		(303,063	)		—			—			—			(304,533	)
Inverse Russell 2000® Strategy Fund		47,545			146,490			—			—			—			194,035
Dow 2x Strategy Fund		(28,095	)		(124,553	)		—			—			—			(152,648	)
Inverse Dow 2x Strategy Fund		(29,198	)		(149,724	)		—			—			—			(178,922	)
Europe 1.25x Strategy Fund		(622,646	)		—			320,941			—			—			(301,705	)
Japan 2x Strategy Fund		(621,414	)		—			749,308			—			—			127,894
Strengthening Dollar 2x Strategy Fund		—			—			(279,238	)		(89,680	)		—			(368,918	)
Weakening Dollar 2x Strategy Fund		—			—			287,670			17,029			—			304,699
Government Long Bond 1.2x Strategy Fund		—			—			—			—			537,041			537,041
Inverse Government Long Bond Strategy Fund		—			—			—			—			(316,831	)		(316,831	)

4. Fees and Other Transactions with Affiliates

Under the terms of an investment advisory contract, the Trust pays SGI investment advisory fees calculated at an annualized rate of 0.50% of the average daily net assets of the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund; 0.75% of the average daily net assets of the Nova Fund, the NASDAQ-100^® Fund, the S&P SmallCap 600 Pure Value Fund, the S&P MidCap 400 Pure Value Fund, the S&P 500 Pure Value Fund, the S&P SmallCap 600 Pure Growth Fund, the S&P MidCap 400 Pure Growth Fund, the S&P 500 Pure Growth Fund and the Japan 2x Strategy Fund; 0.85% of the average daily net assets of the Real Estate Fund; and 0.90% of the average daily net assets of the remaining Funds covered in this report.

210    |    the RYDEX | SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

RFS provides transfer agent and administrative services to the Funds calculated at an annualized rate of 0.20% of the average daily net assets of the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund; and 0.25% of the average daily net assets of the remaining Funds covered in this report.

RFS also provides accounting services to the Trust for fees calculated at an annualized rate of 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each Fund.

RFS engages external service providers to perform other necessary services for the Trust, such as accounting and audit related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets. Organizational and setup costs for new funds are paid by the Trust.

The Trust has adopted an Investor Services Plan for which RDL and other firms that provide investor services (“Service Providers”) may receive compensation. The Funds will pay investor service fees at an annual rate not to exceed 0.25% of average daily net assets. RDL, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

SGI and its affiliates have voluntarily agreed to waive their fees, including but not limited to, accounting, investor services and investment advisory fees in an attempt to maintain a positive net yield for the U.S. Government Money Market Fund. SGI or its affiliates may terminate this voluntary waiver at any time upon notice to the Fund. When investor services fees are waived, dealer compensation will be reduced to the extent of such waiver.

Certain officers and trustees of the Trust are also officers of SGI, RFS and RDL.

5. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on Federal income tax returns for all open tax years (fiscal years 2007 — 2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for derivatives, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, and excise tax regulations.

Permanent book and tax basis differences, if any, will result in reclassifications. This may include net operating losses not utilized during the current period and expired capital loss carryforward or permanently lost due to limitations in the Internal Revenue Code. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended December 31, 2010, the following capital loss carryforward amounts expired, were used, or were permanently lost due to loss limitation rules in Section 382 of the Internal Revenue Code:

Fund	Amount
Nova Fund	$	16,542,228
NASDAQ-100® Fund		98,591,246
S&P 500 2x Strategy Fund		3,499,909
NASDAQ-100® 2x Strategy Fund		22,307,315
Mid-Cap 1.5x Strategy Fund		2,634,236
Inverse Mid-Cap Strategy Fund		2,191,799
Russell 2000® 2x Strategy Fund		4,331,660
Russell 2000® 1.5x Strategy Fund		1,138,895
Dow 2x Strategy Fund		2,689,762
S&P 500 Pure Growth Fund		2,216,051
S&P 500 Pure Value Fund		2,864,203
S&P MidCap 400 Pure Growth Fund		3,792,856
S&P MidCap 400 Pure Value Fund		1,894,266
S&P SmallCap 600 Pure Growth Fund		1,282,635
S&P SmallCap 600 Pure Value Fund		266,630
Europe 1.25x Strategy Fund		11,471,407
Japan 2x Strategy Fund		708,746
Real Estate Fund		761,165

THE RYDEX | SGI variable trust annual report    |    211

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended December 31, 2010 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Nova Fund	$	74,019	$	—	$	74,019
Inverse S&P 500 Strategy Fund		—		—		—
NASDAQ-100® Fund		—		—		—
Inverse NASDAQ-100® Strategy Fund		—		—		—
S&P 500 2x Strategy Fund		—		—		—
NASDAQ-100® 2x Strategy Fund		—		—		—
Mid-Cap 1.5x Strategy Fund		—		—		—
Inverse Mid-Cap Strategy Fund		—		—		—
Russell 2000® 2x Strategy Fund		—		—		—
Russell 2000® 1.5x Strategy Fund		—		—		—
Inverse Russell 2000® Strategy Fund		—		—		—
Dow 2x Strategy Fund		74,124		—		74,124
Inverse Dow 2x Strategy Fund		—		—		—
S&P 500 Pure Growth Fund		—		—		—
S&P 500 Pure Value Fund		184,518		—		184,518
S&P MidCap 400 Pure Growth Fund		—		—		—
S&P MidCap 400 Pure Value Fund		141,797		—		141,797
S&P SmallCap 600 Pure Growth Fund		—		—		—
S&P SmallCap 600 Pure Value Fund		—		—		—
Europe 1.25x Strategy Fund		169,256		—		169,256
Japan 2x Strategy Fund		—		—		—
Strengthening Dollar 2x Strategy Fund		—		—		—
Weakening Dollar 2x Strategy Fund		—		—		—
Real Estate Fund		575,246		—		575,246
Government Long Bond 1.2x Strategy Fund		1,069,767		—		1,069,767
Inverse Government Long Bond Strategy Fund		—		—		—
U.S. Government Money Market Fund		21,279		—		21,279

The tax character of distributions paid during the year ended December 31, 2009 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Nova Fund	$	406,451	$	—	$	406,451
Inverse S&P 500 Strategy Fund		—		—		—
NASDAQ-100® Fund		—		—		—
Inverse NASDAQ-100® Strategy Fund		16,229		—		16,229
S&P 500 2x Strategy Fund		155,985		—		155,985
NASDAQ-100® 2x Strategy Fund		—		—		—
Mid-Cap 1.5x Strategy Fund		7,999		—		7,999
Inverse Mid-Cap Strategy Fund		—		—		—
Russell 2000® 2x Strategy Fund		317		—		317
Russell 2000® 1.5x Strategy Fund		—		—		—
Inverse Russell 2000® Strategy Fund		—		—		—
Dow 2x Strategy Fund		—		—		—
Inverse Dow 2x Strategy Fund		—		—		—
S&P 500 Pure Growth Fund		—		—		—
S&P 500 Pure Value Fund		438,407		—		438,407
S&P MidCap 400 Pure Growth Fund		—		—		—
S&P MidCap 400 Pure Value Fund		254,108		—		254,108
S&P SmallCap 600 Pure Growth Fund		—		—		—
S&P SmallCap 600 Pure Value Fund		195,475		—		195,475
Europe 1.25x Strategy Fund		517,215		—		517,215
Japan 2x Strategy Fund		31,969		—		31,969
Strengthening Dollar 2x Strategy Fund		830,466		1,532,863		2,363,329
Weakening Dollar 2x Strategy Fund		2,390		—		2,390
Real Estate Fund		674,166		—		674,166
Government Long Bond 1.2x Strategy Fund		10,701,077		4,926,154		15,627,231
Inverse Government Long Bond Strategy Fund		—		—		—
U.S. Government Money Market Fund		137,380		—		137,380

212    |    the RYDEX | SGI Variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributable earnings/(accumulated losses) at December 31, 2010 was as follows:

	Undistributed		Undistributed		Net Unrealized
	Ordinary		Long-Term		Appreciation/			Capital Loss
Fund	Income		Capital Gain		(Depreciation)			Carryforward
Nova Fund	$	13,783	$	—	$	4,008,293		$	(25,307,341	)1
Inverse S&P 500 Strategy Fund		—		—		(5,326	)		(34,244,065	)1
NASDAQ-100® Fund		—		—		20,597,924			(20,570,663	)1
Inverse NASDAQ-100® Strategy Fund		—		—		36,068			(22,405,238	)1
S&P 500 2x Strategy Fund		—		—		1,529,372			(22,015,391	)1
NASDAQ-100® 2x Strategy Fund		896,442		2,665,434		4,916,256			(4,670,652	)1
Mid-Cap 1.5x Strategy Fund		—		—		1,553,903			(6,785,655	)1
Inverse Mid-Cap Strategy Fund		—		—		9,913			(2,432,280	)1
Russell 2000® 2x Strategy Fund		290,393		197,743		128,148			(945,743	)1
Russell 2000® 1.5x Strategy Fund		—		—		288,553			(7,565,230	)1
Inverse Russell 2000® Strategy Fund		—		—		20,616			(14,662,896	)1
Dow 2x Strategy Fund		—		—		1,363,640			(26,406,018	)1
Inverse Dow 2x Strategy Fund		—		—		(59,710	)		(20,787,715	)1
S&P 500 Pure Growth Fund		—		—		6,244,663			(2,201,711	)1
S&P 500 Pure Value Fund		8,103		—		701,866			(4,191,352	)1
S&P MidCap 400 Pure Growth Fund		—		1,787,658		7,718,424			—
S&P MidCap 400 Pure Value Fund		—		—		644,684			(2,752,831	)1
S&P SmallCap 600 Pure Growth Fund		—		—		1,909,248			(5,301,299	)1
S&P SmallCap 600 Pure Value Fund		—		—		102,164			(4,339,831	)1
Europe 1.25x Strategy Fund		—		—		(457,480	)		(5,295,520	)1
Japan 2x Strategy Fund		—		—		—			(6,737,936	)1
Strengthening Dollar 2x Strategy Fund		—		—		—			(3,450,471	)1
Weakening Dollar 2x Strategy Fund		—		—		—			(2,101,332	)1
Real Estate Fund		497,372		—		2,887,001			(10,294,006	)1
Government Long Bond 1.2x Strategy Fund		—		—		(303,742	)		(6,803,899	)1
Inverse Government Long Bond Strategy Fund		—		—		280,436			(13,344,915	)1
U.S. Government Money Market Fund		7,375		—		—			—

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

the RYDEX | SGI Variable trust annual report    |    213

NOTES TO FINANCIAL STATEMENTS (continued)

¹ A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows:

																									Total
	Expires in			Expires in			Expires in			Expires in			Expires in			Expires in			Expires in			Expires in			Capital Loss
Fund	2011			2012			2013			2014			2015			2016			2017			2018			Carryforward
Nova Fund	$	—		$	—		$	—		$	—		$	—		$	(25,307,341	)	$	—		$	—		$	(25,307,341	)
Inverse S&P 500 Strategy Fund		—			—			(180,774	)		(5,114,923	)		(1,661,366	)		—			(13,157,153	)		(14,129,849	)		(34,244,065	)
NASDAQ-100® Fund		(10,118,266	)		(305,933	)		—			—			—			(10,146,464	)		—			—			(20,570,663	)
Inverse NASDAQ-100® Strategy Fund		—			—			(2,149,850	)		(1,494,971	)		(5,330,554	)		—			(9,292,387	)		(4,137,476	)		(22,405,238	)
S&P 500 2x Strategy Fund		—			—			—			—			—			(21,924,942	)		(90,449	)		—			(22,015,391	)
NASDAQ-100® 2x Strategy Fund		—			—			—			—			—			(4,670,652	)		—			—			(4,670,652	)
Mid-Cap 1.5x Strategy Fund		—			—			—			—			—			(5,813,639	)		(972,016	)		—			(6,785,655	)
Inverse Mid-Cap Strategy Fund		—			—			—			(472,652	)		(118,163	)		—			(236,326	)		(1,605,139	)		(2,432,280	)
Russell 2000® 2x Strategy Fund		—			—			—			—			—			(810,636	)		(135,107	)		—			(945,743	)
Russell 2000® 1.5x Strategy Fund		—			—			—			—			—			(7,565,230	)		—			—			(7,565,230	)
Inverse Russell 2000® Strategy Fund		—			(295,607	)		(955,067	)		(3,912,378	)		(371,570	)		—			(5,019,104	)		(4,109,170	)		(14,662,896	)
Dow 2x Strategy Fund		—			—			—			—			—			(18,445,795	)		(7,960,223	)		—			(26,406,018	)
Inverse Dow 2x Strategy Fund		—			—			—			—			—			—			(13,703,764	)		(7,083,951	)		(20,787,715	)
S&P 500 Pure Growth Fund		—			—			—			—			—			—			(2,201,711	)		—			(2,201,711	)
S&P 500 Pure Value Fund		—			—			—			—			—			(1,218,609	)		(2,972,743	)		—			(4,191,352	)
S&P MidCap 400 Pure Value Fund		—			—			—			—			—			—			(2,752,831	)		—			(2,752,831	)
S&P SmallCap 600 Pure Growth Fund		—			—			—			—			—			—			(5,301,299	)		—			(5,301,299	)
S&P SmallCap 600 Pure Value Fund		—			—			—			—			(227,466	)		(1,438,380	)		(2,673,985	)		—			(4,339,831	)
Europe 1.25x Strategy Fund		—			—			—			—			—			(3,560,618	)		—			(1,734,902	)		(5,295,520	)
Japan 2x Strategy Fund		—			—			—			—			(1,212,352	)		(5,525,584	)		—			—			(6,737,936	)
Strengthening Dollar 2x Strategy Fund		—			—			—			—			—			—			(2,779,638	)		(670,833	)		(3,450,471	)
Weakening Dollar 2x Strategy Fund		—			—			—			—			—			(1,596,857	)		—			(504,475	)		(2,101,332	)
Real Estate Fund		—			—			—			—			—			(3,497,108	)		(6,796,898	)		—			(10,294,006	)
Government Long Bond 1.2x Strategy Fund		—			—			—			—			—			—			(5,869,672	)		(934,227	)		(6,803,899	)
Inverse Government Long Bond Strategy Fund		—			(2,139,643	)		(2,319,251	)		(986,005	)		(1,974,960	)		(4,794,104	)		—			(1,130,952	)		(13,344,915	)

214    |    the RYDEX | SGI Variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2010, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

			Tax		Tax			Net
	Tax		Unrealized		Unrealized			Unrealized
Fund	Cost		Gain		Loss			Gain (Loss)
Nova Fund	$	24,950,454	$	4,056,047	$	(52,120	)	$	4,003,927
Inverse S&P 500 Strategy Fund		17,052,933		138		—			138
NASDAQ-100® Fund		32,608,180		20,716,802		(50,707	)		20,666,095
Inverse NASDAQ-100® Strategy Fund		8,987,697		—		—			—
S&P 500 2x Strategy Fund		19,211,516		1,535,975		(11,332	)		1,524,643
NASDAQ-100® 2x Strategy Fund		25,301,976		5,153,879		(15,846	)		5,138,033
Mid-Cap 1.5x Strategy Fund		18,899,318		1,640,585		(41,826	)		1,598,759
Inverse Mid-Cap Strategy Fund		2,300,675		—		—			—
Russell 2000® 2x Strategy Fund		4,971,420		211,450		(5,102	)		206,348
Russell 2000® 1.5x Strategy Fund		20,996,532		472,242		(3,217	)		469,025
Inverse Russell 2000® Strategy Fund		3,829,288		14		—			14
Dow 2x Strategy Fund		10,720,192		1,348,594		(5,141	)		1,343,453
Inverse Dow 2x Strategy Fund		19,708,639		49		—			49
S&P 500 Pure Growth Fund		42,807,316		6,601,300		(356,637	)		6,244,663
S&P 500 Pure Value Fund		28,601,121		775,267		(73,401	)		701,866
S&P MidCap 400 Pure Growth Fund		54,275,255		8,213,585		(495,161	)		7,718,424
S&P MidCap 400 Pure Value Fund		15,276,573		771,031		(126,347	)		644,684
S&P SmallCap 600 Pure Growth Fund		26,295,215		2,335,824		(426,576	)		1,909,248
S&P SmallCap 600 Pure Value Fund		17,546,863		426,303		(324,139	)		102,164
Europe 1.25x Strategy Fund		8,761,925		—		(391,618	)		(391,618	)
Japan 2x Strategy Fund		6,630,496		—		—			—
Strengthening Dollar 2x Strategy Fund		6,760,073		—		—			—
Weakening Dollar 2x Strategy Fund		3,214,535		—		—			—
Real Estate Fund		22,413,219		2,931,099		(44,098	)		2,887,001
Government Long Bond 1.2x Strategy Fund		13,595,042		—		(303,742	)		(303,742	)
Inverse Government Long Bond Strategy Fund		36,075,921		137		—			137
U.S. Government Money Market Fund		203,462,360		—		—			—

Post-October Losses Deferred

Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses realized between November 1 and December 31 of each year as occurring on the first day of the following tax year. For the year ended December 31, 2010, the following amounts of realized capital losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2011:

Fund	Capital
Inverse Mid-Cap Strategy Fund	$	(264,795	)
Inverse Russell 2000® Strategy Fund		(571,212	)
Inverse Dow 2x Strategy Fund		(1,765,338	)
Weakening Dollar 2x Strategy Fund		(257,060	)

6. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

The repurchase agreements executed by the joint account and outstanding at December 31, 2010, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.10% due 01/03/11	$	116,166,211	$	116,166,211	$	116,166,533
Morgan Stanley	0.06% due 01/03/11		70,000,000		70,000,000		70,000,117
HSBC Group	0.16% due 01/03/11		67,000,000		67,000,000		67,000,298
Mizuho Financial Group, Inc.	0.13% due 01/03/11		67,000,000		67,000,000		67,000,242

the RYDEX | SGI variable trust annual report   |    215

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2010, the collateral for the repurchase agreements in the joint account was as follows:

Security Type	Maturity Dates		Range of Rates			Par Value		Market Value
U.S. Treasury Notes		11/15/19		3.38	%	$	114,216,700	$	118,489,764
U.S. Treasury Bills		02/24/11 — 11/17/11		0.00	%		108,335,400		108,283,700
U.S. TIP Bond		04/15/28		3.63	%		24,211,900		42,104,145
U.S. TIP Note		04/15/14		1.25	%		26,932,400		29,295,999
U.S. Treasury Bonds		08/15/20 — 05/15/39		4.25% — 8.75	%		27,718,800		28,396,387

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

7. Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes.Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 —	quoted prices in active markets for identical investments.
Level 2 —	other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3 —	significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2010:

	Level 1		Level 1		Level 2		Level 2		Level 3
	Investments		Other Financial		Investments		Other Financial		Investments
Fund	In Securities		Instruments*		In Securities		Instruments*		In Securities		Total
Assets
Nova Fund	$	21,818,685	$	120,992	$	7,135,696	$	4,366	$	—	$	29,079,739
Inverse S&P 500 Strategy Fund		—		—		17,053,071		—		—		17,053,071
NASDAQ-100® Fund		36,027,253		19,600		17,247,022		—		—		53,293,875
Inverse NASDAQ-100® Strategy Fund		—		1,069		8,987,697		36,068		—		9,024,834
S&P 500 2x Strategy Fund		7,723,092		68,400		13,013,067		6,073		—		20,810,632
NASDAQ-100® 2x Strategy Fund		11,128,526		67,345		19,311,483		—		—		30,507,354
Mid-Cap 1.5x Strategy Fund		10,587,839		97,201		9,910,238		—		—		20,595,278
Inverse Mid-Cap Strategy Fund		—		532		2,300,675		9,913		—		2,311,120
Russell 2000® 2x Strategy Fund		749,302		18,426		4,428,461		—		5		5,196,194
Russell 2000® 1.5x Strategy Fund		1,934,105		20,147		19,531,442		—		10		21,485,704
Inverse Russell 2000® Strategy Fund		—		6,748		3,829,302		20,602		—		3,856,652
Dow 2x Strategy Fund		6,624,080		28,965		5,439,565		20,187		—		12,112,797
Inverse Dow 2x Strategy Fund		—		—		19,708,688		—		—		19,708,688
S&P 500 Pure Growth Fund		49,051,979		—		—		—		—		49,051,979
S&P 500 Pure Value Fund		29,094,898		—		208,089		—		—		29,302,987
S&P MidCap 400 Pure Growth Fund		61,837,489		—		156,190		—		—		61,993,679
S&P MidCap 400 Pure Value Fund		15,795,085		—		126,172		—		—		15,921,257
S&P SmallCap 600 Pure Growth Fund		28,033,250		—		171,213		—		—		28,204,463
S&P SmallCap 600 Pure Value Fund		17,552,588		—		96,439		—		—		17,649,027
Europe 1.25x Strategy Fund		4,633,709		7,861		3,736,598		—		—		8,378,168
Japan 2x Strategy Fund		—		297,015		6,630,496		—		—		6,927,511
Strengthening Dollar 2x Strategy Fund		—		—		6,760,073		—		—		6,760,073
Weakening Dollar 2x Strategy Fund		—		65,221		3,214,535		13,390		—		3,293,146

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NOTES TO FINANCIAL STATEMENTS (continued)

	Level 1		Level 1		Level 2		Level 2		Level 3
	Investments		Other Financial		Investments		Other Financial		Investments
Fund	In Securities		Instruments*		In Securities		Instruments*		In Securities		Total
Assets
Real Estate Fund	$	25,247,430	$	—	$	52,790	$	—	$	—	$	25,300,220
Government Long Bond 1.2x Strategy Fund		3,986,856		221,019		9,304,444		—		—		13,512,319
Inverse Government Long Bond Strategy Fund		—		—		36,076,058		—		—		36,076,058
U.S. Government Money Market Fund		—		—		203,462,360		—		—		203,462,360
Liabilities
Nova Fund		—		—		—		—		—		—
Inverse S&P 500 Strategy Fund		—		1,320		—		5,464		—		6,784
NASDAQ-100® Fund		—		—		—		68,171		—		68,171
Inverse NASDAQ-100® Strategy Fund		—		—		—		—		—		—
S&P 500 2x Strategy Fund		—		—		—		1,344		—		1,344
NASDAQ-100® 2x Strategy Fund		—		—		—		221,777		—		221,777
Mid-Cap 1.5x Strategy Fund		—		—		—		44,856		—		44,856
Inverse Mid-Cap Strategy Fund		—		—		—		—		—		—
Russell 2000® 2x Strategy Fund		—		—		—		78,200		—		78,200
Russell 2000® 1.5x Strategy Fund		—		—		—		180,472		—		180,472
Inverse Russell 2000® Strategy Fund		—		—		—		—		—		—
Dow 2x Strategy Fund		—		—		—		—		—		—
Inverse Dow 2x Strategy Fund		—		173		—		59,759		—		59,931
S&P 500 Pure Growth Fund		—		—		—		—		—		—
S&P 500 Pure Value Fund		—		—		—		—		—		—
S&P MidCap 400 Pure Growth Fund		—		—		—		—		—		—
S&P MidCap 400 Pure Value Fund		—		—		—		—		—		—
S&P SmallCap 600 Pure Growth Fund		—		—		—		—		—		—
S&P SmallCap 600 Pure Value Fund		—		—		—		—		—		—
Europe 1.25x Strategy Fund		—		—		—		—		—		—
Japan 2x Strategy Fund		—		—		—		—		—		—
Strengthening Dollar 2x Strategy Fund		—		137,638		—		9,774		—		147,412
Weakening Dollar 2x Strategy Fund		—		—		—		—		—		—
Real Estate Fund		—		—		—		—		—		—
Government Long Bond 1.2x Strategy Fund		—		—		—		—		—		—
Inverse Government Long Bond Strategy Fund		15,964,141		41,049		—		—		—		16,005,190
U.S. Government Money Market Fund		—		—		—		—		—		—

* Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective January 1, 2010. This update applies to the Funds’ disclosures about transfers in and out of all levels of the fair value hierarchy and the reasons for the transfers as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 of the fair value hierarchy. Effective for interim and annual periods beginning after December 15, 2010, purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.

For the year ended December 31, 2010, there were no significant transfers between Levels.

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value for the year ended December 31, 2010:

LEVEL 3 — Fair value measurement using significant unobservable inputs

	Russell 2000® 2x			Russell 2000® 1.5x
	Strategy Fund			Strategy Fund
	Securities			Securities
Assets:
Beginning Balance	$	208		$	938
Total realized gains or losses included in earnings		(53	)		(134	)
Total unrealized gains or losses included in earnings		(90	)		(131	)
Purchases, sales, issuances, and settlements (net)		—			—
Transfers in and/or out of Level 3		(60	)		(663	)
Ending Balance	$	5		$	10

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NOTES TO FINANCIAL STATEMENTS (continued)

8. Securities Transactions

For the year ended December 31, 2010, the cost of purchases and proceeds from sales of investment securities, excluding government securities and short-term investments, were:

							Inverse
			Inverse				NASDAQ-100®		S&P 500 2x		NASDAQ-100®		Mid-Cap 1.5x		Inverse
	Nova		S&P 500		NASDAQ-100®		Strategy		Strategy		2x Strategy		Strategy		Mid-Cap
	Fund		Strategy Fund		Fund		Fund		Fund		Fund		Fund		Strategy Fund
Purchases	$	17,620,941	$	—	$	18,441,198	$	—	$	6,395,551	$	15,013,020	$	16,962,285	$	—
Sales	$	37,043,894	$	—	$	40,344,820	$	—	$	10,807,713	$	30,445,441	$	17,813,824	$	—

									Inverse			S&P		S&P	S&P Mid-Cap
	Russell 2000®		Russell 2000®		Inverse		Dow 2x		Dow 2x		500 Pure		500 Pure		400 Pure
	2x Strategy		1.5x Strategy		Russell 2000®		Strategy		Strategy		Growth		Value		Growth
	Fund		Fund		Strategy Fund		Fund		Fund		Fund		Fund		Fund
Purchases	$	1,667,854	$	15,447,502	$	—	$	9,558,759	$	—	$	116,979,431	$	117,752,192	$	126,093,650
Sales	$	3,207,908	$	21,437,775	$	—	$	12,908,823	$	—	$	109,175,467	$	120,998,529	$	117,485,488

	S&P		S&P		S&P						Strengthening		Weakening
	MidCap 400		SmallCap 600		SmallCap 600		Europe 1.25x		Japan 2x		Dollar 2x		Dollar 2x		Real
	Pure Value		Pure Growth		Pure Value		Strategy		Strategy		Strategy		Strategy		Estate
	Fund		Fund		Fund		Fund		Fund		Fund		Fund		Fund
Purchases	$	61,040,205	$	93,848,558	$	109,541,466	$	37,594,890	$	—	$	—	$	—	$	129,011,449
Sales	$	76,823,286	$	82,213,351	$	106,043,520	$	48,637,344	$	—	$	—	$	—	$	140,756,914

	Government		Inverse		U.S.
	Long Bond		Government		Government
	1.2x Strategy		Long Bond		Money Market
	Fund		Strategy Fund		Fund
Purchases	$	—	$	—	$	—
Sales	$	—	$	—	$	—

For the year ended December 31, 2010, the cost of purchases and proceeds from sales of government securities were:

	Government		Inverse
	Long Bond		Government
	1.2x Strategy		Long Bond
	Fund		Strategy Fund
Purchases	$	723,638,860	$	478,928,246
Sales	$	727,615,148	$	480,249,550

9. Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33 1/3% of a Fund’s net assets, 33 1/3% of a Fund’s assets held by the Custodian or 33 1/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. On December 31, 2010, the S&P 500 Pure Growth Fund borrowed $608,000 under this agreement. As of and for the year ended December 31, 2010, the Funds did not have any other borrowings under this agreement.

10. Acquisition of Security Benefit Corporation

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors II, LLC (formerly PADCO Advisors II, Inc.), the Funds’ investment advisor (the “Investment Advisor”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Advisor (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction did not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

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NOTES TO FINANCIAL STATEMENTS (concluded)

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreement with the Investment Advisor (the “Previous Agreement”). A new investment advisory agreement (the “New Agreement”) was approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreement are substantially identical to the Previous Agreement, except with respect to the date of execution.

11. Distributor and Transfer Change

Effective July 30, 2010, the Funds’ Distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

12. Subsequent Events

Effective January 3, 2011, Rydex Advisors II, LLC, the Funds’ investment advisor was merged with and into Security Investors, LLC, which will operate under the name SGI.

The foregoing internal restructuring is not expected to affect the investment advisory services rendered to the Funds, which will continue to be managed on a day-to-day basis by the same teams of portfolio managers. The investment philosophies, strategies, and processes of the Funds also will remain the same.

In order to implement the restructuring, technical amendments were made to the Funds’ investment advisory agreement with Rydex Advisors II, LLC, in order to reflect the change of the identity of the investment advisor. No other changes will be made to the investment advisory agreement of the Funds, and the fees and expenses of the Funds will remain the same.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
of Rydex Variable Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Nova Fund, Inverse S&P 500 Strategy Fund, NASDAQ-100^® Fund, Inverse NASDAQ-100^® Strategy Fund, S&P 500 2x Strategy Fund, NASDAQ-100 2x Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 2x Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Inverse Russell 2000^® Strategy Fund, Dow 2x Strategy Fund, Inverse Dow 2x Strategy Fund, S&P 500 Pure Growth Fund, S&P 500 Pure Value Fund, S&P MidCap 400 Pure Growth Fund, S&P MidCap 400 Pure Value Fund, S&P SmallCap 600 Pure Growth Fund, S&P SmallCap 600 Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Real Estate Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, and U.S. Government Money Market Fund (twenty-seven of the series constituting the Rydex Variable Trust) (the “Funds”) as of December 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 26, 2008 expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds at December 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles.

McLean,Virginia
February 25, 2011

220    |    the RYDEX SGI variable trust annual report

OTHER INFORMATION (Unaudited)

Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

Of the ordinary income distributions paid during the year, the following funds had the corresponding percentages qualify for the dividends received deduction for corporations:

Fund	% Qualifying
Nova Fund		100	%
Dow 2x Strategy Fund		100	%
S&P 500 Pure Value Fund		100	%
S&P MidCap 400 Pure Value Fund		100	%
Europe 1.25x Strategy Fund		100	%

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended March 31 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800 SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Change of Address

Effective January 17, 2011, the RYDEX | SGI office was moved to Four Irvington Centre, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

SGI Board Review and Approval of the Investment Advisory Agreements

At an in-person meeting of the Trust’s Board of Trustees held on January 28, 2010, called for the purpose of, among other things, voting on the approval of the investment advisory and sub-advisory agreements applicable to the series of the Trust (the “Funds”), the Trust’s Board of Trustees, including the Independent Trustees, unanimously approved the continuation for a two-year period the investment advisory agreements between the Trust and Rydex Advisors II, LLC (formerly, PADCO Advisors II, Inc., and referred to herein as “Rydex”). In reaching this conclusion, the Trustees requested and obtained from Rydex and each investment sub-adviser such information as the Trustees deemed reasonably necessary to evaluate the proposed renewal of the agreements. The Trustees carefully evaluated this information and were advised by legal counsel with respect to their deliberations.

In considering the approval of the investment advisory and sub-advisory agreements, the Independent Trustees evaluated a number of considerations, including, among others, (1) the nature, extent, and quality of the advisory services to be provided by Rydex; (2) the investment performance of the Funds and Rydex; (3) the costs of services provided by Rydex and the profits derived by Rydex from its relationship with the Funds; (4) a comparison of each Funds’ expense ratios and those of similarly situated funds; (5) benefits (such as soft dollars) to Rydex and its affiliates from their relationship with the Funds (and any corresponding benefits to the Funds); (6) other factors the Board deemed to be relevant. The Board also took into account other considerations that it believed, in light of the legal advice furnished to the Independent Trustees by their independent legal counsel and the Trustees’ own business judgment, to be relevant. Following its review, the Trust’s Board determined that the investment advisory agreement will enable Fund shareholders to obtain high quality services at a cost that is appropriate, reasonable and in the best interests of shareholders. Accordingly, the Trustees, including the Independent Trustees, unanimously approved the renewal of the investment advisory agreements based upon the following considerations, among others:

• The nature, extent and quality of the advisory services to be provided. The Board of Trustees concluded that Rydex is capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided in the past, Rydex’s management capabilities demonstrated with respect to the Funds and other mutual funds managed by Rydex, the professional qualifications and experience of Rydex and Rydex’s investment and management oversight processes. The Trustees also determined that Rydex proposed to provide investment and related services that were of the same quality and quantity as

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OTHER INFORMATION (Unaudited) (concluded)

services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Fund. With respect to the Funds, the Trustees concluded on the basis of information compiled by Morningstar that Rydex and the investment sub-advisers had achieved investment performance that was acceptable, and competitive or superior relative to comparable funds over trailing periods.

• The cost of advisory services provided and the level of profitability. On the basis of the Board’s review of the fees to be charged by Rydex for investment advisory and other services, and the estimated profitability of Rydex’s relationship with the Funds, the Board concluded that the level of investment advisory fees and Rydex’s profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and Rydex and its affiliates. On the basis of comparative information compiled by Morningstar, the Trustees determined that the advisory fees and estimated overall expense ratio of each Fund are consistent with, and often below, industry medians, particularly with respect to mutual funds of comparable size.

• Whether the advisory fees reflect economies of scale. The Trustees concluded that the Funds’ investment advisory fees appropriately reflect the current economic environment for Rydex and the competitive nature of the mutual fund market.

• The extent to which economies of scale will be realized as the Fund grows. While the Funds’ investment advisory fees do not reduce should fund assets grow meaningfully, the Trustees determined that the investment advisory fees payable by the funds already reflect potential future economies of scale to some extent by virtue of their competitive levels (determined with reference to industry standards as reported by Lipper) and Rydex’s estimated profitability at current or foreseeable asset levels. The Trustees also considered that they will have the opportunity to periodically re-examine whether each Fund has achieved economies of scale, and the appropriateness of investment advisory fees payable to Rydex in the future.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of SGI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

All Trustees and Officers may be reached c/o Security Global Investors, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds — 1997		150
Trustee, Chairman of the	Rydex Variable Trust — 1998
Board (1940)	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Retired

Corey A. Colehour	Rydex Series Funds — 1993	150
Trustee (1945)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)

J. Kenneth Dalton	Rydex Series Funds — 1995	150
Trustee (1941)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group

Werner E. Keller	Rydex Series Funds — 2005	150
Trustee (1940)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005

Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)

Thomas F. Lydon, Jr.	Rydex Series Funds — 2005	150
Trustee (1960)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005

Principal Occupations During Past Five Years: President, Global Trends Investments

Patrick T. McCarville	Rydex Series Funds — 1997	150
Trustee (1942)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.

Roger Somers	Rydex Series Funds — 1993	150
Trustee (1944)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Owner, Arrow Limousine

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nikolaos Bonos* Vice President and Treasurer (1963)	Senior Vice President, Security Investors LLC; and Vice President, Security Benefit Asset Management Holdings LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney Catalucci* Chief Compliance Officer and Secretary (1966)	Vice President, Security Benefit Asset Management Holdings, LLC; 6) and Senior Vice President and Chief Compliance Officer, Security Investors, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present); Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)

224   |    the RYDEX SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Vice President, Security Investors, LLC (2010 to present); Vice President, Security Global Investors, LLC (2010 to 2011); Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)

* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments.

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805 King Farm Boulevard, Suite 600
Rockville, MD 20850
www.rydex-sgi.com
800.820.0888
RVABENF-ANN-2-1210x1211

This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

Distributed by Rydex Distributors, LLC.

TABLE OF CONTENTS
LETTER TO OUR SHAREHOLDERS	2
ABOUT SHAREHOLDERS’ FUND EXPENSES	4
BANKING FUND	6
BASIC MATERIALS FUND	11
BIOTECHNOLOGY FUND	17
CONSUMER PRODUCTS FUND	22
ELECTRONICS FUND	27
ENERGY FUND	32
ENERGY SERVICES FUND	37
FINANCIAL SERVICES FUND	42
HEALTH CARE FUND	48
INTERNET FUND	54
LEISURE FUND	59
PRECIOUS METALS FUND	65
RETAILING FUND	70
TECHNOLOGY FUND	75
TELECOMMUNICATIONS FUND	81
TRANSPORTATION FUND	86
UTILITIES FUND	91
NOTES TO FINANCIAL STATEMENTS	96
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	102
OTHER INFORMATION	103
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	105

the RYDEX|SGI variable trust annual report | 1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

The U.S. economy continued a second year of recovery in 2010, but soft employment and housing markets combined to keep growth tepid. The consensus forecast for U.S. GDP growth was 2.8%, but a consumer spending rally may be needed for it to do better in 2011. Along with better economic reports on retail sales and jobless claims late in 2010, passage of federal legislation to extend Bush-era tax cuts and roll out new stimulus measures boosted equity markets, and prompted many economists to raise growth forecasts for 2011 to 3.5% or higher. Markets were also affected by a change in control of the House of Representatives and a renewed focus on cutting government spending and dealing with the budget deficit.

The U.S. Federal Reserve was responsible for much of the investor optimism that flowed through 2010, slowed only at mid-year by debt problems in Europe and the fading effects of U.S. government stimulus spending that played into fears of a double-dip recession. Concerns that the economy was not growing fast enough to lower an unemployment rate seemingly stuck at more than 9% led the U.S. central bank to signal in August that it would embark on a second round of bond buying in an attempt to keep long-term rates low enough to entice borrowers and spur economic activity. Although critics said such quantitative easing could flame inflation or lead to another asset bubble, the expectation of up to $600 billion in purchases corresponded with a third-quarter stock-market rally, which picked up more steam after the purchases actually began in November. Inflation turned out to be tame in 2010, with prices rising just 1.1%.

Government efforts to support the economy were a plug for stocks in 2010, as markets were carried to highs last seen more than two years ago—just before the collapse of Lehman Brothers. U.S. equity markets were up by double digits in 2010. The NASDAQ Composite Index* led major indices, up 17%, while the Dow Jones Industrial Average Index* and S&P 500^® Index* were up 14% and 15%, respectively. The sweet spot was small cap stocks, often a leader in economic recoveries, and the Russell 2000^® Index* was up 27%. Stocks in the consumer discretionary and industrials sectors, which benefited from exposure to awakening consumers as well as emerging markets and commodities, were up the most, 26% and 23% respectively, while the health care sector provided the weakest return at less than 1%.

Markets around the globe also benefited from the flood of cash unleashed by the U.S. Federal Reserve. Those in many European countries rose despite sovereign debt problems, with the broad STOXX Europe 600 Index* finishing up 9%. Strong economic recovery in Asia benefited markets from Indonesia to South Korea, although the region’s two largest economies, Japan and China, finished the year lower.

Yield-hungry fixed-income investors increasingly took on credit risk over the year, which was reflected in good performance across most sectors. Expectations about too-fast economic growth and possibly a tick up in inflation in the next few quarters prompted a late-year selloff in Treasuries. Although the Fed kept interest rates on hold all year, the yield on Treasuries rose, affecting mortgage rates, which unfortunately came at a time when reports were indicating that house prices continue to fall and a glut of foreclosures may hit the market over the next few years. Still, Treasuries performed well over the year, as fears of a double-dip recession and European debt woes eased. Among the best returns for the year: bonds in the U.S. intermediate high yield space and emerging market bonds. The Barclays Capital U.S. Aggregate Bond Index* returned about 6.5%.

Driven by demand from China and other fast-growing countries, commodities performed strongly in 2010, as investors appeared to be either encouraged by global recovery or worried about inflation. The Dow Jones-UBS Commodity Index* was up almost 17%; indicative of the strength of the raw materials rally was a record high price for copper and gold. While the metals and agriculture sub-indices were higher over the year, the energy index was lower. Oil finished 2010 around $91, rising about 15%.

The dollar gained on the euro in 2010, reflecting concern about Europe’s crisis in sovereign debt. The dollar weakened against many other currency counterparts around the world, falling most against the yen, as investors coped with record-low rates by searching for higher-yielding assets.

2 | the RYDEX|SGI variable trust annual report

LETTER TO OUR SHARE HOLDERS (concluded)

Many economists are calling for recovery to continue in 2011. Some feel there is a chance the economy could overheat, based on continued Fed intervention, causing a spike in interest rates, choking off recovery. Others view high levels of government and consumer debt as weights that could restrain the expansion, with growth insufficient to bring down unemployment. U.S. consumers are vital to a robust global recovery and their improving household incomes and debt burdens, along with rising global profits, should benefit many global regions. Stronger performance is forecast for emerging markets compared with developed economies, which are still shoring up their finances. In the fixed income market, strong corporate balance sheets and a low default rate should combine to further compress spreads, and position credit to outperform government paper in the year ahead.

Whether helping hedge or augment exposures to the equity or fixed-income markets, or introducing alternative assets and strategies to portfolios for overall diversification¹, our products are designed for a range of investment scenarios. Rydex|SGI is pleased to help investors navigate uncertain markets, and we appreciate the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

1	Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
*	Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

NASDAQ Composite Index — a capitalization-weighted index of more than 3,000 companies listed on the NASDAQ Stock Market.

The Dow Jones Industrial Average Index (DJIA) — a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

The Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large-, mid- and small-capitalization companies across 18 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The U.S. Aggregate rolls up into other Barclays Capital flagship indices such as the multi-currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt.

The Dow Jones-UBS Commodity Index aims to provide broadly diversified representation of commodity markets as an asset class. The index is made up of exchange-traded futures on physical commodities. The index represents 19 commodities, which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

the RYDEX|SGI variable trust annual report | 3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2010 and ending December 31, 2010. The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

4 | the RYDEX|SGI variable trust annual report

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

							Beginning		Ending		Expenses
	Expense			Fund			Account Value		Account Value		Paid During
	Ratio1			Return			June 30, 2010		December 31, 2010		Period2
Table 1. Based on actual Fund return3
Banking Fund		1.68	%		13.13	%	$	1,000.00	$	1,131.30	$	9.05
Basic Materials Fund		1.70	%		38.78	%		1,000.00		1,387.80		10.21
Biotechnology Fund		1.69	%		19.63	%		1,000.00		1,196.30		9.37
Consumer Products Fund		1.69	%		17.57	%		1,000.00		1,175.70		9.25
Electronics Fund		1.69	%		23.94	%		1,000.00		1,239.40		9.54
Energy Fund		1.69	%		37.51	%		1,000.00		1,375.10		10.13
Energy Services Fund		1.69	%		48.26	%		1,000.00		1,482.60		10.60
Financial Services Fund		1.68	%		19.52	%		1,000.00		1,195.20		9.32
Health Care Fund		1.68	%		13.55	%		1,000.00		1,135.50		9.07
Internet Fund		1.70	%		34.63	%		1,000.00		1,346.30		10.04
Leisure Fund		1.69	%		29.23	%		1,000.00		1,292.30		9.77
Precious Metals Fund		1.59	%		35.33	%		1,000.00		1,353.30		9.45
Retailing Fund		1.69	%		30.80	%		1,000.00		1,308.00		9.85
Technology Fund		1.69	%		24.39	%		1,000.00		1,243.90		9.57
Telecommunications Fund		1.69	%		26.95	%		1,000.00		1,269.50		9.67
Transportation Fund		1.68	%		25.42	%		1,000.00		1,254.20		9.57
Utilities Fund		1.68	%		14.04	%		1,000.00		1,140.40		9.08
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund		1.68	%		5.00	%	$	1,000.00	$	1,016.74	$	8.54
Basic Materials Fund		1.70	%		5.00	%		1,000.00		1,016.64		8.64
Biotechnology Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Consumer Products Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Electronics Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Energy Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Energy Services Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Financial Services Fund		1.68	%		5.00	%		1,000.00		1,016.74		8.54
Health Care Fund		1.68	%		5.00	%		1,000.00		1,016.74		8.54
Internet Fund		1.70	%		5.00	%		1,000.00		1,016.64		8.64
Leisure Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Precious Metals Fund		1.59	%		5.00	%		1,000.00		1,017.19		8.08
Retailing Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Technology Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Telecommunications Fund		1.69	%		5.00	%		1,000.00		1,016.69		8.59
Transportation Fund		1.68	%		5.00	%		1,000.00		1,016.74		8.54
Utilities Fund		1.68	%		5.00	%		1,000.00		1,016.74		8.54

1	Annualized.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.
3	Actual cumulative return at net asset value for the period June 30, 2010 to December 31, 2010.

the RYDEX|SGI variable trust annual report | 5

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

BANKING FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the banking sector, including commercial banks (and their holding companies) and savings and loan institutions (“Banking Companies”).

Inception: May 2, 2001

Strong outperformance of the banking industry in December helped the Fund keep pace with the broader market in 2010. Almost all the Banking Fund’s performance came from the commercial banks, which generally are enjoying high levels of capital, ample liquidity and strengthening asset quality. While credit conditions are gradually improving, banks are still beset by weak loan demand, face higher levels of potentially delinquent mortgages and are expecting recent financial reform to impact earnings. An underutilized capital markets industry and poor returns from diversified financial services, with heavy exposure to Europe, were drags on Banking Fund performance.

For the one-year period ended December 31, 2010, Banking Fund rose 13.04% compared with the S&P 500^® Index, which returned 15.06%.

Fifth Third Bancorp, SunTrust Banks, Inc. and KeyCorp were among the best-performing stocks in the Fund for the year.

The worst-performing holdings for the period were Wilmington Trust Corp., Bank of America Corp. and Banco Santander S.A. ADS.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 2, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
BANKING FUND		13.04	%		-12.23	%		-2.72	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 FINANCIALS INDEX		12.18	%		-10.58	%		-3.31	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Financials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

JPMorgan Chase & Co.	4.1	%
Bank of America Corp.	4.0	%
U.S. Bancorp	3.9	%
Wells Fargo & Co.	3.9	%
Bank of New York Mellon Corp.	3.8	%
PNC Financial Services Group, Inc.	3.5	%
BB&T Corp.	2.6	%
SunTrust Banks, Inc.	2.5	%
Fifth Third Bancorp	2.1	%
M&T Bank Corp.	2.0	%
Top Ten Total	32.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

6 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS	December 31, 2010
BANKING FUND

	Shares		Value
COMMON STOCKS† - 99.4%
FINANCIALS - 99.4%
JPMorgan Chase & Co.		5,227	$	221,729
Bank of America Corp.		16,544		220,697
U.S. Bancorp		7,983		215,301
Wells Fargo & Co.		6,934		214,885
Bank of New York Mellon Corp.		6,867		207,383
PNC Financial Services Group, Inc.		3,172		192,604
BB&T Corp.		5,496		144,490
SunTrust Banks, Inc.		4,541		134,005
Fifth Third Bancorp		7,912		116,148
M&T Bank Corp.		1,260		109,683
CIT Group, Inc.*		2,255		106,210
Regions Financial Corp.		14,975		104,825
New York Community Bancorp, Inc.		5,208		98,171
KeyCorp		10,844		95,969
Comerica, Inc.		2,174		91,830
Hudson City Bancorp, Inc.		6,889		87,766
Huntington Bancshares, Inc.		12,142		83,416
People’s United Financial, Inc.		5,516		77,279
Itau Unibanco Holding S.A. ADR		3,203		76,904
Banco Bradesco S.A. ADR		3,652		74,099
Zions Bancorporation		2,974		72,060
ICICI Bank Ltd. ADR		1,329		67,301
Marshall & Ilsley Corp.		9,459		65,456
Cullen		1,062		64,909
Banco Santander Brasil S.A. ADR		4,730		64,328
Toronto-Dominion Bank		847		62,941
HSBC Holdings plc ADR		1,231		62,830
Commerce Bancshares, Inc.		1,574		62,535
HDFC Bank Ltd. ADR		365		60,995
UBS AG		3,670		60,445
Royal Bank of Canada		1,153		60,371
First Horizon National Corp.*		5,107		60,156
City National Corp.		980		60,133
Banco Santander S.A. ADR		5,614		59,789
East West Bancorp, Inc.		3,018		59,002
Barclays plc ADR		3,570		58,976
Bank of Montreal		1,024		58,952
Deutsche Bank AG		1,125		58,556
First Niagara Financial Group, Inc.		4,118		57,570
Credicorp Ltd.		470		55,888
Associated Banc-Corp.		3,640		55,146
Bank of Hawaii Corp.		1,091		51,506
Valley National Bancorp		3,566		50,994
SVB Financial Group*		950		50,397
TCF Financial Corp.		3,394		50,265
FirstMerit Corp.		2,511		49,693
Fulton Financial Corp.		4,785		49,477
CapitalSource, Inc.		6,925		49,167
Signature Bank*		973		48,650
Capitol Federal Financial, Inc.		4,032		48,021
MGIC Investment Corp.*		4,687		47,761
Prosperity Bancshares, Inc.		1,170		45,958
Whitney Holding Corp.		3,240		45,846
Webster Financial Corp.		2,189		43,123
Westamerica Bancorporation		776		43,045
Trustmark Corp.		1,719		42,700
NewAlliance Bancshares, Inc.		2,830		42,393
Iberiabank Corp.		715		42,278
BancorpSouth, Inc.		2,589		41,295
Astoria Financial Corp.		2,899		40,325
Umpqua Holdings Corp.		3,292		40,097
Cathay General Bancorp		2,363		39,462
Susquehanna Bancshares, Inc.		3,790		36,687
Wintrust Financial Corp.		1,100		36,333
FNB Corp.		3,660		35,941
Radian Group, Inc.		4,393		35,452
TFS Financial Corp.		3,900		35,178
Washington Federal, Inc.		2,042		34,551
Old National Bancorp		2,905		34,540
PrivateBancorp, Inc. — Class A		2,350		33,793
Northwest Bancshares, Inc.		2,855		33,575
Provident Financial Services, Inc.		2,140		32,378
First Midwest Bancorp, Inc.		2,795		32,198
Glacier Bancorp, Inc.		2,040		30,824
Texas Capital Bancshares, Inc.*		1,410		29,991
Sterling Bancshares, Inc.		3,440		24,149
Ocwen Financial Corp.*		2,420		23,087
CVB Financial Corp.		2,419		20,973
Total Financials				5,433,836
Total Common Stocks (Cost $4,061,022)				5,433,836

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	36,782		36,782
Total Repurchase Agreement (Cost $36,782)				36,782
Total Investments - 100.1% (Cost $4,097,804)			$	5,470,618
Liabilities, Less Cash & Other Assets - (0.1)%				(7,731	)
Total Net Assets - 100.0%			$	5,462,887

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 7

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	5,433,836
Repurchase agreements, at value		36,782
Total investments		5,470,618
Receivables:
Fund shares sold		158,526
Dividends		5,871
Foreign taxes reclaim		1,092
Total assets		5,636,107
Liabilities:
Payable for:
Securities purchased		140,074
Fund shares redeemed		13,984
Management fees		3,521
Custodian fees		140
Transfer agent/maintenance fees		1,036
Investor service fees		1,036
Portfolio accounting fees		414
Other		13,015
Total liabilities		173,220
Net Assets	$	5,462,887
Net assets consist of:
Paid in capital	$	15,956,717
Undistributed net investment income		8,767
Accumulated net realized loss on investments		(11,875,411	)
Net unrealized appreciation on investments		1,372,814
Net assets	$	5,462,887
Capital shares outstanding		390,842
Net asset value per share	$	13.98
Investments, at cost	$	4,061,022
Repurchase agreements, at cost		36,782
Total cost	$	4,097,804

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2,613)	$	124,211
Interest		83
Total investment income		124,294
Expenses:
Management fees		59,715
Transfer agent and administrative fees		17,563
Investor service fees		17,563
Portfolio accounting fees		7,025
Trustees’ fees*		878
Printing fees		5,911
Miscellaneous		6,872
Total expenses		115,527
Net investment income		8,767
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		44,948
Net realized gain		44,948
Net change in unrealized appreciation (depreciation) on:
Investments		206,243
Net change in unrealized appreciation (depreciation)		206,243
Net realized and unrealized gain		251,191
Net increase in net assets resulting from operations	$	259,958

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

8 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	8,767		$	78,777
Net realized gain (loss) on investments		44,948			(1,454,620	)
Net change in unrealized appreciation (depreciation) on investments		206,243			605,767
Net increase (decrease) in net assets resulting from operations		259,958			(770,076	)
Distributions to shareholders from:
Net investment income		(78,777	)		(435,757	)
Total distributions to shareholders		(78,777	)		(435,757	)
Capital share transactions:
Proceeds from sale of shares		84,205,602			90,692,374
Distributions reinvested		78,777			435,757
Cost of shares redeemed		(83,641,681	)		(108,251,516	)
Net increase (decrease) from capital share transactions		642,698			(17,123,385	)
Net increase (decrease) in net assets		823,879			(18,329,218	)
Net Assets:
Beginning of year		4,639,008			22,968,226
End of year	$	5,462,887		$	4,639,008
Undistributed net investment income at end of year	$	8,767		$	78,777
Capital share activity:
Shares sold		6,248,914			8,335,904
Shares issued from reinvestment of distributions		6,093			34,777
Shares redeemed		(6,234,738	)		(9,714,053	)
Net increase (decrease) in shares		20,269			(1,343,372	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 9

BANKING FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	12.52		$	13.40		$	22.80		$	32.44		$	29.69
Income (loss) from investment operations:
Net investment incomea		.02			.08			.48			.56			.44
Net gain (loss) on investments (realized and unrealized)		1.60			(.54	)		(9.86	)		(9.32	)		2.89
Total from investment operations		1.62			(.46	)		(9.38	)		(8.76	)		3.33
Less distributions from:
Net investment income		(.16	)		(.42	)		(.02	)		(.88	)		(.58	)
Total distributions		(.16	)		(.42	)		(.02	)		(.88	)		(.58	)
Net asset value, end of period	$	13.98		$	12.52		$	13.40		$	22.80		$	32.44
Total Returnb		13.04	%		(3.43	%)		(41.16	%)		(27.08	%)		11.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,463		$	4,639		$	22,968		$	9,186		$	24,348
Ratios to average net assets:
Net investment income		0.12	%		0.70	%		2.87	%		1.85	%		1.42	%
Total expenses		1.64	%		1.66	%		1.63	%		1.59	%		1.59	%
Portfolio turnover rate		1,119	%		731	%		521	%		405	%		259	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

10 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

BASIC MATERIALS FUND

OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the mining, manufacture or sale of basic materials, such as lumber, steel, iron, aluminum, concrete, chemicals and other basic building and manufacturing materials (“Basic Materials Companies”).

Inception: May 2, 2001

For the one-year period ended December 31, 2010, Basic Materials Fund returned 26.67% compared with 15.06% for the S&P 500^® Index.

The Basic Materials sector was an underperformer for much of 2010, but awakened along with improving economic conditions that solidified demand in the space. While some segments of this sector (such as industrial metals) are tied closely with global economic growth, the U.S. materials sectors is driven more by performance in the chemicals and agricultural products. The latter have seen strong pricing gains, which could easily reverse with strong harvests. Although dollar strength for much of the year crimped the sector, a stable-to-weak dollar could provide a tailwind to sector returns.

Within the sector, both the Chemicals and the Metals & Mining industries turned in very strong performances, rising 33% and 30%, respectively, providing almost all of the Fund’s return. Lightly weighted Construction Materials detracted from the Fund’s performance.

The top-performing holdings were Potash Corp. of Saskatchewan Inc., Freeport-McMoRan Copper & Gold, Inc. and E.I. DuPont de Nemours & Co. The worst-performing holdings included Monsanto, ArcelorMittal SA and Vulcan Materials Co.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 2, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
BASIC MATERIALS FUND		26.67	%		11.99	%		9.76	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 MATERIALS INDEX		22.34	%		7.56	%		8.36	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Materials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Freeport-McMoRan Copper & Gold, Inc. — Class B	2.8	%
Vale S.A. — Class B ADR	2.7	%
Barrick Gold Corp.	2.7	%
E. I. du Pont de Nemours & Co.	2.4	%
Dow Chemical Co.	2.3	%
Monsanto Co.	2.3	%
Mosaic Co.	2.2	%
Goldcorp, Inc.	2.1	%
Potash Corporation of Saskatchewan, Inc.	2.0	%
Newmont Mining Co.	2.0	%
Top Ten Total	23.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 11

SCHEDULE OF INVESTMENTS	December 31, 2010
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 99.6%
MATERIALS - 98.4%
Freeport-McMoRan Copper & Gold, Inc. — Class B		11,378	$	1,366,384
Vale S.A. — Class B ADR		37,704		1,303,427
Barrick Gold Corp.		24,495		1,302,644
E. I. du Pont de Nemours & Co.		23,945		1,194,377
Dow Chemical Co.		32,783		1,119,212
Monsanto Co.		15,999		1,114,170
Mosaic Co.		14,374		1,097,599
Goldcorp, Inc.		22,670		1,042,367
Potash Corporation of Saskatchewan, Inc.		6,469		1,001,595
Newmont Mining Co.		15,932		978,703
Praxair, Inc.		10,002		954,891
Kinross Gold Corp.		43,807		830,581
Air Products & Chemicals, Inc.		8,613		783,352
AngloGold Ashanti Ltd. ADR		15,705		773,157
Alcoa, Inc.		46,015		708,171
PPG Industries, Inc.		7,846		659,613
Nucor Corp.		14,944		654,846
Silver Wheaton Corp.*		16,773		654,818
Cia de Minas Buenaventura S.A. ADR		13,318		652,049
Gold Fields Ltd. ADR		35,077		635,946
Teck Resources Ltd. — Class B		10,221		631,964
Agnico-Eagle Mines Ltd.		8,219		630,397
BHP Billiton Ltd. ADR		6,694		622,006
International Paper Co.		22,699		618,321
Ecolab, Inc.		11,988		604,435
Southern Copper Co.		11,864		578,251
Cliffs Natural Resources, Inc.		7,322		571,189
Agrium, Inc.		6,051		555,179
Yamana Gold, Inc.		43,300		554,240
CF Industries Holdings, Inc.		4,091		552,899
Sherwin-Williams Co.		6,380		534,325
United States Steel Co.		8,889		519,295
Gerdau S.A. ADR		36,430		509,656
Sigma-Aldrich Corp.		7,483		498,068
Rio Tinto plc ADR		6,944		497,607
ArcelorMittal		12,991		495,347
Cia Siderurgica Nacional S.A. ADR		28,867		481,213
Randgold Resources Ltd. ADR		5,693		468,705
Walter Energy, Inc.		3,630		464,059
Lubrizol Corp.		4,232		452,316
Celanese Corp. — Class A		10,956		451,059
Eastman Chemical Co.		5,253		441,672
Ball Corp.		6,333		430,961
LyondellBasell Industries N.V. — Class A*		12,510		430,344
FMC Corp.		5,352		427,571
Cemex SAB de CV ADR*		39,237		420,228
Vulcan Materials Co.		9,396		416,807
Crown Holdings, Inc.*		12,225		408,071
Airgas, Inc.		6,467		403,929
Allegheny Technologies, Inc.		7,311		403,421
Owens-Illinois, Inc.*		13,134		403,214
Albemarle Corp.		7,195		401,337
Eldorado Gold Corp.		21,242		394,464
Molycorp, Inc.*		7,880		393,212
POSCO ADR		3,536		380,792
MeadWestvaco Corp.		14,385		376,312
Pan American Silver Corp.		9,107		375,299
Mechel ADR		12,741		372,419
International Flavors & Fragrances, Inc.		6,679		371,286
Nalco Holding Co.		11,551		368,939
IAMGOLD Corp.		20,145		358,581
Sealed Air Corp.		14,083		358,412
Steel Dynamics, Inc.		19,321		353,574
Martin Marietta Materials, Inc.		3,830		353,279
Ivanhoe Mines Ltd.*		15,290		350,447
Ashland, Inc.		6,880		349,917
Reliance Steel & Aluminum Co.		6,824		348,706
Huntsman Corp.		22,024		343,795
Bemis Company, Inc.		10,110		330,193
Sonoco Products Co.		9,746		328,148
Valspar Corp.		9,458		326,112
Scotts Miracle-Gro Co. — Class A		6,405		325,182
Titanium Metals Corp.*		18,127		311,422
Domtar Corp.		4,065		308,615
Intrepid Potash, Inc.*		8,243		307,381
Hecla Mining Co.*		27,023		304,279
Royal Gold, Inc.		5,559		303,688
RPM International, Inc.		13,591		300,361
Rockwood Holdings, Inc.*		7,655		299,464
Compass Minerals International, Inc.		3,324		296,733
Solutia, Inc.*		12,657		292,124
Silgan Holdings, Inc.		8,130		291,135
Packaging Corporation of America		11,171		288,659
Thompson Creek Metals Company, Inc.*		19,560		287,923
Cytec Industries, Inc.		5,378		285,357
WR Grace & Co.*		7,983		280,443
Coeur d’Alene Mines Corp.*		10,194		278,500
Temple-Inland, Inc.		12,909		274,187
Cabot Corp.		7,270		273,716
Silver Standard Resources, Inc.*		9,570		270,065
Stillwater Mining Co.*		12,081		257,929
Schnitzer Steel Industries, Inc. — Class A		3,860		256,265
Rock-Tenn Co. — Class A		4,735		255,453
Commercial Metals Co.		14,496		240,489
AK Steel Holding Corp.		14,489		237,185
Total Materials				48,366,430

12 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
BASIC MATERIALS FUND

	Shares		Value
FINANCIALS - 1.2%
Weyerhaeuser Co.		29,933	$	566,632
Total Common Stocks (Cost $32,454,014)				48,933,062
RIGHT†† - 0.0%
Ivanhoe Mines Ltd. Expires 01/26/11††		14,660		20,524
Total Right (Cost $20,254)				20,524

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	247,917		247,917
Total Repurchase Agreement (Cost $247,917)				247,917
Total Investments - 100.1% (Cost $32,722,185)			$	49,201,503
Liabilities, Less Cash & Other Assets - (0.1)%				(70,323	)
Total Net Assets - 100.0%			$	49,131,180

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 13

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	48,953,586
Repurchase agreements, at value		247,917
Total investments		49,201,503
Receivables:
Fund shares sold		1,633,025
Dividends		36,695
Total assets		50,871,223
Liabilities:
Payable for:
Securities purchased		1,646,918
Fund shares redeemed		2,364
Management fees		33,904
Custodian fees		1,316
Transfer agent/maintenance fees		9,972
Investor service fees		9,972
Portfolio accounting fees		3,989
Other		31,608
Total liabilities		1,740,043
Net Assets	$	49,131,180
Net assets consist of:
Paid in capital	$	36,302,345
Accumulated net investment loss		—
Accumulated net realized loss on investments		(3,650,483	)
Net unrealized appreciation on investments		16,479,318
Net assets	$	49,131,180
Capital shares outstanding		1,334,120
Net asset value per share	$	36.83
Investments, at cost	$	32,474,268
Repurchase agreements, at cost		247,917
Total cost	$	32,722,185

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $5,891)	$	494,564
Interest		299
Total investment income		494,863
Expenses:
Management fees		292,758
Transfer agent and administrative fees		86,105
Investor service fees		86,105
Portfolio accounting fees		34,442
Trustees’ fees*		4,209
Audit and outside service fees		38,462
Printing fees		29,926
Miscellaneous		(1,348	)
Total expenses		570,659
Net investment loss		(75,796	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,083,403
Net realized gain		5,083,403
Net change in unrealized appreciation (depreciation) on:
Investments		763,261
Net change in unrealized appreciation (depreciation)		763,261
Net realized and unrealized gain		5,846,664
Net increase in net assets resulting from operations	$	5,770,868

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

14 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(75,796	)	$	231,949
Net realized gain (loss) on investments		5,083,403			(2,791,365	)
Net change in unrealized appreciation (depreciation) on investments		763,261			14,170,060
Net increase in net assets resulting from operations		5,770,868			11,610,644
Distributions to shareholders from:
Net investment income		(231,949	)		(86,889	)
Net realized gains		—			(1,278,910	)
Total distributions to shareholders		(231,949	)		(1,365,799	)
Capital share transactions:
Proceeds from sale of shares		178,635,157			138,818,144
Distributions reinvested		231,949			1,365,799
Cost of shares redeemed		(181,796,720	)		(127,695,314	)
Net increase (decrease) from capital share transactions		(2,929,614	)		12,488,629
Net increase in net assets		2,609,305			22,733,474
Net Assets:
Beginning of year		46,521,875			23,788,401
End of year	$	49,131,180		$	46,521,875
Accumulated/(Undistributed) net investment income/(loss) at end of year	$	—		$	231,949
Capital share activity:
Shares sold		5,804,562			5,641,375
Shares issued from reinvestment of distributions		6,879			47,032
Shares redeemed		(6,069,612	)		(5,323,392	)
Net increase (decrease) in shares		(258,171	)		365,015

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 15

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	29.22		$	19.38		$	41.66		$	33.33		$	27.87
Income (loss) from investment operations:
Net investment income (loss)a		(.07	)		.17			.06			.11			.32
Net gain (loss) on investments (realized and unrealized)		7.86			10.58			(19.38	)		11.21			5.90
Total from investment operations		7.79			10.75			(19.32	)		11.32			6.22
Less distributions from:
Net investment income		(.18	)		(.06	)		(.27	)		(.05	)		(.31	)
Net realized gains		—			(.85	)		(2.69	)		(2.94	)		(.45	)
Total distributions		(.18	)		(.91	)		(2.96	)		(2.99	)		(.76	)
Net asset value, end of period	$	36.83		$	29.22		$	19.38		$	41.66		$	33.33
Total Returnb		26.67	%		55.46	%		(45.40	%)		33.97	%		22.29	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	49,131		$	46,522		$	23,788		$	95,591		$	58,622
Ratios to average net assets:
Net investment income (loss)		(0.22	%)		0.69	%		0.15	%		0.28	%		1.02	%
Total expenses		1.66	%		1.65	%		1.60	%		1.58	%		1.60	%
Portfolio turnover rate		418	%		377	%		191	%		244	%		225	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

16 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

BIOTECHNOLOGY FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic or biological engineering and in the design, manufacture, or sale of related biotechnology products or services (“Biotechnology Companies”).

Inception: May 2, 2001

For the one-year period ended December 31, 2010, Biotechnology Fund returned 10.70% compared with the S&P 500^® Index, which returned 15.06%.

This capital-intensive industry did not enjoy a rush of capital during the year. This factor, along with the perception that the FDA takes too long to review new drugs and too-quickly rejects new therapies and technologies because of possible future side effects, restrained performance of the industry and the Fund. Among industry news was the $18.5 billion takeover bid of Genzyme, the world’s largest manufacturer of medicines for genetic diseases, by the French company Sanofi-Aventis SA. After an initial offer was rejected, the two companies had discussions about a new bid late in the year.

The best-performing stocks in the Fund were Genzyme Corp., Biogen Idec, Inc. and OSI Pharmaceuticals. The worst-performing stocks in the Fund included Gilead Sciences, Inc. Vertex Pharmaceuticals, Inc. and AMAG Pharmaceuticals, Inc.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 2, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
BIOTECHNOLOGY FUND		10.70	%		3.13	%		0.00	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 HEALTH CARE INDEX		2.90	%		1.87	%		1.19	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Amgen, Inc.	10.7	%
Gilead Sciences, Inc.	8.1	%
Celgene Corp.	8.0	%
Genzyme Corp.	6.6	%
Biogen Idec, Inc.	6.0	%
Alexion Pharmaceuticals, Inc.	4.1	%
Vertex Pharmaceuticals, Inc.	4.0	%
Dendreon Corp.	3.3	%
Human Genome Sciences, Inc.	3.2	%
Cephalon, Inc.	3.2	%
Top Ten Total	57.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 17

SCHEDULE OF INVESTMENTS	December 31, 2010
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.1%
HEALTH CARE - 99.1%
Amgen, Inc.*		26,888	$	1,476,151
Gilead Sciences, Inc.*		31,098		1,126,992
Celgene Corp.*		18,666		1,103,907
Genzyme Corp.*		12,830		913,496
Biogen Idec, Inc.*		12,388		830,615
Alexion Pharmaceuticals, Inc.*		6,962		560,789
Vertex Pharmaceuticals, Inc.*		15,827		554,420
Dendreon Corp.*		13,107		457,696
Human Genome Sciences, Inc.*		18,617		444,760
Cephalon, Inc.*		7,169		442,471
United Therapeutics Corp.*		6,262		395,884
Regeneron Pharmaceuticals, Inc.*		10,387		341,005
Onyx Pharmaceuticals, Inc.*		8,793		324,198
InterMune, Inc.*		8,300		302,120
Amylin Pharmaceuticals, Inc.*		20,435		300,599
BioMarin Pharmaceutical, Inc.*		9,716		261,652
Myriad Genetics, Inc.*		11,180		255,351
Incyte Corporation Ltd.*		15,055		249,311
Cubist Pharmaceuticals, Inc.*		10,988		235,143
Theravance, Inc.*		8,930		223,875
Acorda Therapeutics, Inc.*		8,176		222,878
MannKind Corp.*		25,894		208,706
Exelixis, Inc.*		23,370		191,868
Pharmasset, Inc.*		4,260		184,927
Enzon Pharmaceuticals, Inc.*		14,890		181,211
Savient Pharmaceuticals, Inc.*		15,887		176,981
Momenta Pharmaceuticals, Inc.*		11,820		176,945
Martek Biosciences Corp.*		5,320		166,516
Cepheid, Inc.*		7,190		163,573
Seattle Genetics, Inc.*		10,692		159,845
PDL BioPharma, Inc.		22,967		143,084
Geron Corp.*		26,970		139,435
Orexigen Therapeutics, Inc.*		15,990		129,199
Alkermes, Inc.*		10,260		125,993
Ariad Pharmaceuticals, Inc.*		24,450		124,695
Talecris Biotherapeutics Holdings Corp.*		4,672		108,858
Immunogen, Inc.*		8,860		82,044
Isis Pharmaceuticals, Inc.*		8,098		81,952
SIGA Technologies, Inc.*		5,410		75,740
AMAG Pharmaceuticals, Inc.*		4,064		73,558
Total Health Care				13,718,443
Total Common Stocks (Cost $8,971,575)				13,718,443

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.9%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	123,694		123,694
Total Repurchase Agreement (Cost $123,694)				123,694
Total Investments - 100.0% (Cost $9,095,269)			$	13,842,137
Cash & Other Assets, Less Liabilities - 0.0%				858
Total Net Assets - 100.0%			$	13,842,995

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

18 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	13,718,443
Repurchase agreements, at value		123,694
Total investments		13,842,137
Receivables:
Fund shares sold		111,590
Total assets		13,953,727
Liabilities:
Payable for:
Fund shares redeemed		70,381
Management fees		10,605
Custodian fees		412
Transfer agent/maintenance fees		3,119
Investor service fees		3,119
Portfolio accounting fees		1,248
Other		21,848
Total liabilities		110,732
Net Assets	$	13,842,995
Net assets consist of:
Paid in capital	$	22,910,801
Accumulated net investment loss		—
Accumulated net realized loss on investments		(13,814,674	)
Net unrealized appreciation on investments		4,746,868
Net assets	$	13,842,995
Capital shares outstanding		555,203
Net asset value per share	$	24.93
Investments, at cost	$	8,971,575
Repurchase agreements, at cost		123,694
Total cost	$	9,095,269

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends	$	41,222
Interest		179
Total investment income		41,401
Expenses:
Management fees		140,356
Transfer agent and administrative fees		41,281
Investor service fees		41,281
Portfolio accounting fees		16,512
Trustees’ fees*		1,873
Miscellaneous		31,345
Total expenses		272,648
Net investment loss		(231,247	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		685,066
Net realized gain		685,066
Net change in unrealized appreciation (depreciation) on:
Investments		765,162
Net change in unrealized appreciation (depreciation)		765,162
Net realized and unrealized gain		1,450,228
Net increase in net assets resulting from operations	$	1,218,981

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 19

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(231,247	)	$	(269,006	)
Net realized gain on investments		685,066			423,232
Net change in unrealized appreciation (depreciation) on investments		765,162			173,101
Net increase in net assets resulting from operations		1,218,981			327,327
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		86,929,077			76,854,529
Cost of shares redeemed		(87,449,125	)		(99,333,937	)
Net decrease from capital share transactions		(520,048	)		(22,479,408	)
Net increase (decrease) in net assets		698,933			(22,152,081	)
Net Assets:
Beginning of year		13,144,062			35,296,143
End of year	$	13,842,995		$	13,144,062
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		3,708,311			3,794,772
Shares redeemed		(3,736,720	)		(5,065,926	)
Net decrease in shares		(28,409	)		(1,271,154	)

20 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	22.52		$	19.03		$	21.57		$	20.66		$	21.37
Income (loss) from investment operations:
Net investment lossa		(.33	)		(.25	)		(.26	)		(.26	)		(.32	)
Net gain (loss) on investments (realized and unrealized)		2.74			3.74			(2.28	)		1.17			(.39	)
Total from investment operations		2.41			3.49			(2.54	)		.91			(.71	)
Net asset value, end of period	$	24.93		$	22.52		$	19.03		$	21.57		$	20.66
Total Returnb		10.70	%		18.34	%		(11.78	%)		4.40	%		(3.32	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,843		$	13,144		$	35,296		$	13,927		$	10,754
Ratios to average net assets:
Net investment loss		(1.40	%)		(1.25	%)		(1.25	%)		(1.20	%)		(1.48	%)
Total expenses		1.65	%		1.68	%		1.63	%		1.59	%		1.59	%
Portfolio turnover rate		509	%		388	%		351	%		660	%		379	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 21

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

CONSUMER PRODUCTS FUND

OBJECTIVE: Seeks capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally (“Consumer Products Companies”).

Inception: May 29, 2001

Consumer Products firms performed well, with solid fundamentals—wage growth that was constrained, lean inventories and strong control of expenses. But because of the rise in commodity prices and the group’s lack of pricing power, margins may be compressed going forward. Among the best-performing segments are those with high exposure to emerging markets and strong brands in domestic markets. Consumer products, as a defensive sector, often lags if the U.S. economy is rapidly growing, as investors seek returns in more-aggressive sectors.

For the one-year period ended December 31, 2010, Consumer Products Fund returned 17.28%, compared with a gain of 15.06% for the S&P 500^® Index. All industries were higher for the year. Within the sector, the Food Products, Beverages and Tobacco industries were the biggest contributors to Fund performance. Food & Staples Retailing and Household Products were the weakest contributors to Fund performance.

Fund performance for the year got the biggest boost from Philip Morris International Inc., Coca-Cola Enterprises, Inc. and Altria Group, Inc. Dean Foods Co., Universal Corp. and SUPERVALU, Inc. were among the Fund’s weakest performers during the year.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 29, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/29/01)
CONSUMER PRODUCTS FUND		17.28	%		6.90	%		6.77	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 CONSUMER STAPLES INDEX		14.12	%		7.75	%		6.19	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Consumer Staples Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Procter & Gamble Co.	6.6	%
Coca-Cola Co.	6.1	%
Philip Morris International, Inc.	5.0	%
PepsiCo, Inc.	5.0	%
Kraft Foods, Inc. — Class A	3.6	%
Altria Group, Inc.	3.5	%
Colgate-Palmolive Co.	3.1	%
Kimberly-Clark Corp.	2.5	%
General Mills, Inc.	2.3	%
Archer-Daniels-Midland Co.	2.1	%
Top Ten Total	39.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

22 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS	December 31, 2010
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.4%
CONSUMER STAPLES - 99.4%
Procter & Gamble Co.		15,546	$	1,000,074
Coca-Cola Co.		14,144		930,251
Philip Morris International, Inc.		13,075		765,280
PepsiCo, Inc.		11,557		755,019
Kraft Foods, Inc. — Class A		17,611		554,923
Altria Group, Inc.		21,556		530,709
Colgate-Palmolive Co.		5,826		468,236
Kimberly-Clark Corp.		6,021		379,564
General Mills, Inc.		9,902		352,412
Archer-Daniels-Midland Co.		10,869		326,940
Reynolds American, Inc.		9,970		325,221
Kellogg Co.		6,351		324,409
Sysco Corp.		10,563		310,552
Estee Lauder Companies, Inc. — Class A		3,729		300,930
HJ Heinz Co.		6,022		297,848
Kroger Co.		12,814		286,521
Avon Products, Inc.		9,072		263,632
Mead Johnson Nutrition Co. — Class A		4,229		263,255
Lorillard, Inc.		3,197		262,346
Campbell Soup Co.		7,366		255,968
Sara Lee Corp.		14,161		247,959
Hershey Co.		5,073		239,192
Bunge Ltd.		3,639		238,427
ConAgra Foods, Inc.		10,472		236,458
Molson Coors Brewing Co. — Class B		4,528		227,260
Clorox Co.		3,512		222,239
Whole Foods Market, Inc.		4,364		220,775
Safeway, Inc.		9,787		220,110
Coca-Cola Enterprises, Inc.		8,670		217,010
JM Smucker Co.		3,185		209,095
Dr Pepper Snapple Group, Inc.		5,922		208,217
Cia de Bebidas das Americas ADR		6,200		192,386
Tyson Foods, Inc. — Class A		11,066		190,556
McCormick & Company, Inc.		3,969		184,678
Hormel Foods Corp.		3,453		177,001
Energizer Holdings, Inc.*		2,303		167,889
Church & Dwight Company, Inc.		2,388		164,820
Constellation Brands, Inc. — Class A*		7,371		163,268
Hansen Natural Corp.*		3,059		159,924
Brown-Forman Corp. — Class B		2,255		156,993
Green Mountain Coffee Roasters, Inc.*		4,679		153,752
Del Monte Foods Co.		7,653		143,876
Alberto-Culver Co. — Class B		3,880		143,715
Ralcorp Holdings, Inc.*		2,171		141,137
Smithfield Foods, Inc.*		6,692		138,056
Corn Products International, Inc.		3,000		138,000
Unilever N.V.		4,087		128,332
Herbalife Ltd.		1,843		126,006
Fomento Economico Mexicano SAB de CV ADR		2,157		120,619
Anheuser-Busch InBev N.V. ADR		2,106		120,232
Diageo plc ADR		1,522		113,130
SUPERVALU, Inc.		11,720		112,864
Flowers Foods, Inc.		4,002		107,694
Nu Skin Enterprises, Inc. — Class A		3,314		100,282
Dean Foods Co.*		11,240		99,362
Central European Distribution Corp.*		4,158		95,218
Casey’s General Stores, Inc.		2,233		94,925
United Natural Foods, Inc.*		2,587		94,891
Total Consumer Staples				15,170,438
Total Common Stocks (Cost $10,193,722)				15,170,438
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12††		17		5
Total Warrant (Cost $—)				5

	Face
	Amount
REPURCHASE AGREEMENT††,1- 0.3%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	49,191		49,191
Total Repurchase Agreement (Cost $49,191)				49,191
Total Investments - 99.7% (Cost $10,242,913)			$	15,219,634
Cash & Other Assets, Less Liabilities - 0.3%				38,939
Total Net Assets - 100.0%			$	15,258,573

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 23

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	15,170,443
Repurchase agreements, at value		49,191
Total investments		15,219,634
Receivables:
Fund shares sold		345,398
Dividends		50,041
Total assets		15,615,073
Liabilities:
Payable for:
Securities purchased		318,613
Fund shares redeemed		894
Management fees		11,983
Custodian fees		468
Transfer agent/maintenance fees		3,524
Investor service fees		3,524
Portfolio accounting fees		1,410
Other		16,084
Total liabilities		356,500
Net Assets	$	15,258,573
Net assets consist of:
Paid in capital	$	15,018,415
Undistributed net investment income		320,376
Accumulated net realized loss on investments		(5,056,939	)
Net unrealized appreciation on investments		4,976,721
Net assets	$	15,258,573
Capital shares outstanding		408,762
Net asset value per share	$	37.33
Investments, at cost	$	10,193,722
Repurchase agreements, at cost		49,191
Total cost	$	10,242,913

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $147)	$	620,506
Interest		133
Total investment income		620,639
Expenses:
Management fees		154,395
Transfer agent and administrative fees		45,410
Investor service fees		45,410
Portfolio accounting fees		18,164
Trustees’ fees*		2,202
Miscellaneous		34,682
Total expenses		300,263
Net investment income		320,376
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,017,347
Net realized gain		2,017,347
Net change in unrealized appreciation (depreciation) on:
Investments		428,639
Net change in unrealized appreciation (depreciation)		428,639
Net realized and unrealized gain		2,445,986
Net increase in net assets resulting from operations	$	2,766,362

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

24 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	320,376		$	242,595
Net realized gain (loss) on investments		2,017,347			(356,061	)
Net change in unrealized appreciation (depreciation) on investments		428,639			2,224,030
Net increase in net assets resulting from operations		2,766,362			2,110,564
Distributions to shareholders from:
Net investment income		(242,595	)		(346,841	)
Total distributions to shareholders		(242,595	)		(346,841	)
Capital share transactions:
Proceeds from sale of shares		89,104,867			46,961,368
Distributions reinvested		242,595			346,841
Cost of shares redeemed		(97,864,840	)		(52,652,456	)
Net decrease from capital share transactions		(8,517,378	)		(5,344,247	)
Net decrease in net assets		(5,993,611	)		(3,580,524	)
Net Assets:
Beginning of year		21,252,184			24,832,708
End of year	$	15,258,573		$	21,252,184
Undistributed net investment income at end of year	$	320,376		$	242,595
Capital share activity:
Shares sold		2,576,242			1,603,031
Shares issued from reinvestment of distributions		6,702			10,715
Shares redeemed		(2,833,190	)		(1,857,493	)
Net decrease in shares		(250,246	)		(243,747	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 25

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	32.25		$	27.51		$	37.02		$	36.55		$	31.63
Income (loss) from investment operations:
Net investment incomea		.60			.41			.40			.42			.48
Net gain (loss) on investments (realized and unrealized)		4.96			4.85			(9.09	)		3.69			5.03
Total from investment operations		5.56			5.26			(8.69	)		4.11			5.51
Less distributions from:
Net investment income		(.48	)		(.52	)		(.06	)		(.69	)		(.27	)
Net realized gains		—			—			(.76	)		(2.95	)		(.32	)
Total distributions		(.48	)		(.52	)		(.82	)		(3.64	)		(.59	)
Net asset value, end of period	$	37.33		$	32.25		$	27.51		$	37.02		$	36.55
Total Returnb		17.28	%		19.12	%		(23.39	%)		11.08	%		17.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,259		$	21,252		$	24,833		$	40,847		$	43,007
Ratios to average net assets:
Net investment income		1.76	%		1.43	%		1.21	%		1.10	%		1.41	%
Total expenses		1.65	%		1.66	%		1.61	%		1.59	%		1.59	%
Portfolio turnover rate		442	%		259	%		297	%		260	%		219	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

26 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

ELECTRONICS FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the electronics sector, including semiconductor manufacturers and distributors, and makers and vendors of other electronic components and devices (“Electronics Companies”).

Inception: August 3, 2001

Semiconductors and Semiconductor Equipment firms provided some of the strongest equity returns in 2009, but reverted to performance that was lower than the broad market in 2010. Although growth in business investment in technology has been higher than total business investment, companies remain hesitant to increase capital spending and governments are also clamping down on spending.

For the one-year period ended December 31, 2010, Electronics Fund returned 9.55%, compared with a gain of 15.06% for the S&P 500^® Index. The Semiconductors and Semiconductor Equipment stocks that make up the Fund contributed nearly all of the Fund’s performance.

For the year, Fund performance got the biggest boost from Atmel Corp., Altera Corp. and Broadcom Corp., while Micron Technology, Inc., FormFactor Inc. and Advanced Micro Devices, Inc. were among the stocks which provided the least to Fund performance for the period.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
August 3, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(08/03/01)
ELECTRONICS FUND		9.55	%		-1.26	%		-6.11	%
S&P 500 INDEX		15.06	%		2.29	%		2.33	%
S&P 500 INFORMATION TECHNOLOGY INDEX		10.22	%		5.02	%		1.15	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Intel Corp.	8.2	%
Texas Instruments, Inc.	4.7	%
Broadcom Corp. — Class A	3.6	%
Applied Materials, Inc.	3.4	%
Marvell Technology Group Ltd.	2.6	%
Analog Devices, Inc.	2.6	%
Altera Corp.	2.5	%
First Solar, Inc.	2.5	%
NVIDIA Corp.	2.4	%
Micron Technology, Inc.	2.2	%
Top Ten Total	34.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 27

SCHEDULE OF INVESTMENTS

ELECTRONICS FUND December 31, 2010

	Shares		Value
COMMON STOCKS† - 99.9%
INFORMATION TECHNOLOGY - 96.5%
Intel Corp.		36,144	$	760,108
Texas Instruments, Inc.		13,419		436,118
Broadcom Corp. — Class A		7,646		332,983
Applied Materials, Inc.		22,032		309,550
Marvell Technology Group Ltd.*		12,897		239,239
Analog Devices, Inc.		6,272		236,266
Altera Corp.		6,563		233,512
NVIDIA Corp.*		14,105		217,217
Micron Technology, Inc.*		25,147		201,679
Xilinx, Inc.		6,758		195,847
Linear Technology Corp.		5,661		195,814
Avago Technologies Ltd.		6,566		186,934
Maxim Integrated Products, Inc.		7,874		185,984
Cree, Inc.*		2,818		185,678
Microchip Technology, Inc.		5,233		179,021
Lam Research Corp.*		3,406		176,363
KLA-Tencor Corp.		4,560		176,198
Atmel Corp.*		13,820		170,262
Advanced Micro Devices, Inc.*		20,405		166,913
Skyworks Solutions, Inc.*		5,681		162,647
Taiwan Semiconductor Manufacturing Company Ltd. ADR		12,565		157,565
ON Semiconductor Corp.*		15,284		151,006
LSI Corp.*		23,258		139,315
National Semiconductor Corp.		9,398		129,317
Cypress Semiconductor Corp.*		6,761		125,619
Novellus Systems, Inc.*		3,757		121,426
Trina Sola Ltd. ADR*		5,178		121,269
Varian Semiconductor Equipment Associates, Inc.*		3,193		118,045
Teradyne, Inc.*		8,173		114,749
Atheros Communications, Inc.*		3,185		114,405
MEMC Electronic Materials, Inc.*		10,062		113,298
ASML Holding N.V. — Class G		2,657		101,869
PMC — Sierra, Inc.*		11,820		101,534
Fairchild Semiconductor International, Inc. — Class A*		6,427		100,326
Silicon Laboratories, Inc.*		2,165		99,633
Netlogic Microsystems, Inc.*		3,118		97,936
Intersil Corp. — Class A		6,394		97,636
TriQuint Semiconductor, Inc.*		8,346		97,565
RF Micro Devices, Inc.*		13,147		96,631
Microsemi Corp.*		4,171		95,516
Veeco Instruments, Inc.*		2,177		93,524
Hittite Microwave Corp.*		1,525		93,086
Cavium Networks, Inc.*		2,416		91,035
Omnivision Technologies, Inc.*		3,072		90,962
International Rectifier Corp.*		3,004		89,189
Semtech Corp.*		3,666		82,998
Cymer, Inc.*		1,821		82,073
SunPower Corp. — Class A*		6,077		77,968
Rambus, Inc.*		3,692		75,612
Cirrus Logic, Inc.*		4,606		73,604
Entropic Communications, Inc.*		5,975		72,178
Integrated Device Technology, Inc.*		10,684		71,155
Power Integrations, Inc.		1,746		70,084
Entegris, Inc.*		9,218		68,859
Lattice Semiconductor Corp.*		10,405		63,054
MIPS Technologies, Inc. — Class A*		4,130		62,611
Applied Micro Circuits Corp.*		5,543		59,199
Volterra Semiconductor Corp.*		2,409		55,792
Advanced Energy Industries, Inc.*		3,983		54,328
Rubicon Technology, Inc.*		2,421		51,035
Tessera Technologies, Inc.*		2,270		50,281
Monolithic Power Systems, Inc.*		3,041		50,237
Kulicke & Soffa Industries, Inc.*		6,885		49,572
Amkor Technology, Inc.*		5,581		41,244
Total Information Technology				8,912,673
INDUSTRIALS - 3.4%
First Solar, Inc.*		1,793		233,341
GT Solar International, Inc.*		9,485		86,503
Total Industrials				319,844
Total Common Stocks (Cost $6,504,528)				9,232,517

	Face
	Amount
REPURCHASE AGREEMENT ††,1 - 0.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	60,227		60,227
Total Repurchase Agreement (Cost $60,227)				60,227
Total Investments — 100.6% (Cost $6,564,755)			$	9,292,744
Liabilities, Less Cash & Other Assets — (0.6)%				(54,280	)
Total Net Assets — 100.0%			$	9,238,464

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.
	ADR — American Depositary Receipt

28 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	9,232,517
Repurchase agreements, at value		60,227
Total investments		9,292,744
Receivables:
Securities sold		300,945
Fund shares sold		2,594
Dividends		1,080
Total assets		9,597,363
Liabilities:
Payable for:
Fund shares redeemed		340,099
Management fees		6,242
Custodian fees		242
Transfer agent/maintenance fees		1,836
Investor service fees		1,836
Portfolio accounting fees		734
Other		7,910
Total liabilities		358,899
Net Assets	$	9,238,464
Net assets consist of:
Paid in capital	$	9,127,692
Accumulated net investment loss		—
Accumulated net realized loss on investments		(2,617,217	)
Net unrealized appreciation on investments		2,727,989
Net assets	$	9,238,464
Capital shares outstanding		979,272
Net asset value per share	$	9.43
Investments, at cost	$	6,504,528
Repurchase agreements, at cost		60,227
Total cost	$	6,564,755

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $36)	$	147,195
Interest		104
Total investment income		147,299
Expenses:
Management fees		106,064
Transfer agent and administrative fees		31,195
Investor service fees		31,195
Portfolio accounting fees		12,478
Trustees’ fees*		1,810
Miscellaneous		21,463
Total expenses		204,205
Net investment loss		(56,906	)
Net Realized and Unrealized Gain (loss):
Net realized gain (loss) on:
Investments		2,944,930
Net realized gain		2,944,930
Net change in unrealized appreciation (depreciation) on:
Investments		(4,689,536	)
Net change in unrealized appreciation (depreciation)		(4,689,536	)
Net realized and unrealized loss		(1,744,606	)
Net decrease in net assets resulting from operations	$	(1,801,512	)

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 29

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(56,906	)	$	(31,930	)
Net realized gain on investments		2,944,930			1,870,560
Net change in unrealized appreciation (depreciation) on investments		(4,689,536	)		7,186,967
Net increase (decrease) in net assets resulting from operations		(1,801,512	)		9,025,597
Distributions To Shareholders From:
Net realized gains		(1,609,036	)		—
Total distributions to shareholders		(1,609,036	)		—
Capital share transactions:
Proceeds from sale of shares		137,613,070			94,247,995
Distributions reinvested		1,609,036			—
Cost of shares redeemed		(151,602,331	)		(80,121,501	)
Net increase (decrease) from capital share transactions		(12,380,225	)		14,126,494
Net increase (decrease) in net assets		(15,790,773	)		23,152,091
Net assets:
Beginning of year		25,029,237			1,877,146
End of year	$	9,238,464		$	25,029,237
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		12,576,972			10,441,590
Shares issued from reinvestment of distributions		183,890			—
Shares redeemed		(13,916,768	)		(8,581,628	)
Net increase (decrease) in shares		(1,155,906	)		1,859,962

30 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	11.72		$	6.82		$	13.67		$	14.02		$	13.68
Income (loss) from investment operations:
Net investment lossa		(.05	)		(.02	)		(.02	)		(.11	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		.92			4.92			(6.83	)		(.24	)		.49
Total from investment operations		.87			4.90			(6.85	)		(.35	)		.34
Less distributions from:
Net realized gains		(3.16	)		—			—			—			—
Total distributions		(3.16	)		—			—			—			—
Net asset value, end of period	$	9.43		$	11.72		$	6.82		$	13.67		$	14.02
Total Returnb		9.55	%		71.85	%		(50.11	%)		(2.50	%)		2.49	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,238		$	25,029		$	1,877		$	2,943		$	3,856
Ratios to average net assets:
Net investment loss		(0.46	%)		(0.19	%)		(0.15	%)		(0.73	%)		(1.02	%)
Total expenses		1.64	%		1.64	%		1.61	%		1.59	%		1.59	%
Portfolio turnover rate		958	%		445	%		940	%		1,009	%		477	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 31

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

ENERGY FUND

OBJECTIVE: Seeks capital appreciation by investing in companies involved in the energy field, including the exploration, production and development of oil, gas, coal and alternative sources of energy (“Energy Companies”).

Inception: May 29, 2001

The energy sector finished 2010 strongly, as the sector benefited from a continuing economic recovery and U.S. quantitative easing that has pushed the dollar lower, supporting oil prices. The price of a barrel of oil increased 15% in 2010 to about $92. Loosening monetary policy globally has been keeping upward pressure on economic growth, and developing countries have been leading the demand for more fuel. The sector also benefited from the change in Congressional control, which could ease the regulatory environment affecting oil drilling.

For the one-year period ended December 31, 2010, Energy Fund returned 19.05%, compared with the 15.06% increase in the S&P 500^® Index. Within the sector, the segment most sensitive to changes in the price of oil, Energy Equipment & Services, accounted for only about 26% of the holdings. Its contribution to return was second to the contribution from much more heavily weighted Oil, Gas & Consumable Fuels. That segment accounts for 74% of the portfolio weight and advanced 19%.

Schlumberger Ltd., ConocoPhillips and Chevron Corp. were among the most significant positive contributors to Fund performance for the year, while Petrobras Petroleo Brasileiro, Diamond Offshore Drilling, Inc. and Southwestern Energy Co. were among the weakest contributors.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 29, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/29/01)
ENERGY FUND		19.05	%		5.82	%		8.48	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 ENERGY INDEX		20.46	%		8.32	%		10.01	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Energy Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Exxon Mobil Corp.	6.3	%
Chevron Corp.	4.5	%
Schlumberger Ltd.	3.5	%
ConocoPhillips	3.3	%
Occidental Petroleum Corp.	2.9	%
Petroleo Brasileiro S.A. ADR	2.8	%
Anadarko Petroleum Corp.	2.1	%
Apache Corp.	2.1	%
Halliburton Co.	2.0	%
Devon Energy Corp.	1.9	%
Top Ten Total	31.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

32 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS

ENERGY FUND December 31, 2010

	Shares		Value
COMMON STOCKS† - 99.6%
ENERGY - 99.6%
Exxon Mobil Corp.		36,449	$	2,665,151
Chevron Corp.		20,722		1,890,882
Schlumberger Ltd.		17,692		1,477,282
ConocoPhillips		20,482		1,394,824
Occidental Petroleum Corp.		12,675		1,243,417
Petroleo Brasileiro S.A. ADR		30,834		1,166,759
Anadarko Petroleum Corp.		11,862		903,410
Apache Corp.		7,526		897,325
Halliburton Co.		20,698		845,099
Devon Energy Corp.		10,294		808,182
National Oilwell Varco, Inc.		10,897		732,823
Marathon Oil Corp.		19,272		713,642
Transocean Ltd.*		10,125		703,789
Baker Hughes, Inc.		12,098		691,643
Hess Corp.		8,986		687,788
EOG Resources, Inc.		7,106		649,559
BP plc ADR		13,971		617,099
Weatherford International Ltd.*		25,006		570,137
Peabody Energy Corp.		8,906		569,806
Chesapeake Energy Corp.		21,880		566,911
Spectra Energy Corp.		22,196		554,678
Noble Energy, Inc.		6,159		530,167
Williams Companies, Inc.		21,176		523,471
Murphy Oil Corp.		6,916		515,588
Valero Energy Corp.		21,701		501,727
Southwestern Energy Co.*		13,299		497,782
Suncor Energy, Inc.		12,470		477,476
Cameron International Corp.*		9,353		474,478
Consol Energy, Inc.		9,666		471,121
FMC Technologies, Inc.*		4,973		442,149
Continental Resources, Inc.*		7,311		430,252
El Paso Corp.		31,207		429,408
Pioneer Natural Resources Co.		4,943		429,151
Newfield Exploration Co.*		5,855		422,204
Diamond Offshore Drilling, Inc.		6,285		420,278
Noble Corp.		11,280		403,486
Concho Resources, Inc.*		4,599		403,194
Alpha Natural Resources, Inc.*		6,374		382,631
Total S.A. ADR		7,147		382,222
Canadian Natural Resources Ltd.		8,473		376,371
Denbury Resources, Inc.*		19,568		373,553
Range Resources Corp.		8,145		366,362
Cimarex Energy Co.		4,126		365,275
Ultra Petroleum Corp.*		7,609		363,482
Nabors Industries Ltd.*		15,471		362,950
Encana Corp.		12,429		361,932
Royal Dutch Shell plc ADR		5,401		360,679
Whiting Petroleum Corp.*		3,039		356,140
EQT Corp.		7,852		352,084
Ensco plc ADR		6,425		342,967
QEP Resources, Inc.		9,358		339,789
PetroChina Company Ltd. ADR		2,529		332,538
Pride International, Inc.*		9,979		329,307
Arch Coal, Inc.		9,306		326,268
Cameco Corp. — Class A		8,041		324,696
Nexen, Inc.		14,096		322,798
Massey Energy Co.		5,990		321,363
CNOOC Ltd. ADR		1,347		321,084
Talisman Energy, Inc.		14,115		313,212
Petrohawk Energy Corp.*		17,147		312,933
Tenaris S.A. ADR		6,346		310,827
McDermott International, Inc.*		14,786		305,922
Helmerich & Payne, Inc.		6,297		305,279
Sunoco, Inc.		7,438		299,826
Plains Exploration & Production Co.*		9,194		295,495
Forest Oil Corp.*		7,448		282,801
Rowan Companies, Inc.*		8,097		282,666
Cenovus Energy, Inc.		8,460		281,210
EXCO Resources, Inc.		14,194		275,647
Cabot Oil & Gas Corp.		7,116		269,341
Oceaneering International, Inc.*		3,621		266,614
Core Laboratories N.V.		2,978		265,191
SM Energy Co.		4,494		264,831
Atlas Energy, Inc.*		5,849		257,181
Dresser-Rand Group, Inc.*		5,842		248,811
Patterson-UTI Energy, Inc.		11,411		245,907
Oil States International, Inc.*		3,818		244,696
SandRidge Energy, Inc.*		33,378		244,327
Brigham Exploration Co.*		8,836		240,693
Southern Union Co.		9,766		235,068
Dril-Quip, Inc.*		3,022		234,870
Tidewater, Inc.		4,242		228,389
Superior Energy Services, Inc.*		6,491		227,120
Quicksilver Resources, Inc.*		14,854		218,948
Tesoro Corp.		11,740		217,660
Total Energy				42,262,094
Total Common Stocks (Cost $24,403,270)				42,262,094

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	244,498		244,498
Total Repurchase Agreement (Cost $244,498)				244,498
Total Investments — 100.2% (Cost $24,647,768)			$	42,506,592
Liabilities, Less Cash & Other Assets — (0.2)%				(93,970	)
Total Net Assets — 100.0%			$	42,412,622

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

ADR — American Depositary Receipt

plc — Public Limited Company

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 33

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	42,262,094
Repurchase agreements, at value		244,498
Total investments		42,506,592
Cash		3,327
Receivables:
Fund shares sold		360,571
Dividends		14,157
Total assets		42,884,647
Liabilities:
Payable for:
Securities purchased		347,926
Fund shares redeemed		35,553
Management fees		28,810
Custodian fees		1,118
Transfer agent/maintenance fees		8,474
Investor service fees		8,474
Portfolio accounting fees		3,389
Other		38,281
Total liabilities		472,025
Net assets	$	42,412,622
Net assets consist of:
Paid in capital	$	28,196,692
Accumulated net investment loss		—
Accumulated net realized loss on investments		(3,642,894	)
Net unrealized appreciation on investments		17,858,824
Net assets	$	42,412,622
Capital shares outstanding		1,357,471
Net asset value per share	$	31.24
Investments, at cost	$	24,403,270
Repurchase agreements, at cost		244,498
Total cost	$	24,647,768

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $7,927)	$	483,497
Interest		285
Total investment income		483,782
Expenses:
Management fees		283,935
Transfer agent and administrative fees		83,510
Investor service fees		83,510
Portfolio accounting fees		33,404
Trustees’ fees*		4,005
Audit & outside service fees		32,245
Printing fees		28,771
Miscellaneous		2,877
Total expenses		552,257
Net investment loss		(68,475	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,318,529
Net realized gain		2,318,529
Net change in unrealized appreciation (depreciation) on:
Investments		2,393,456
Net change in unrealized appreciation (depreciation)		2,393,456
Net realized and unrealized gain		4,711,985
Net increase in net assets resulting from operations	$	4,643,510

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

34 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(68,475	)	$	171,009
Net realized gain (loss) on investments		2,318,529			(761,981	)
Net change in unrealized appreciation (depreciation) on investments		2,393,456			11,603,214
Net increase in net assets resulting from operations		4,643,510			11,012,242
Distributions to shareholders from:
Net investment income		(171,009	)		—
Net realized gains		—			(3,007,402	)
Total distributions to shareholders		(171,009	)		(3,007,402	)
Capital share transactions:
Proceeds from sale of shares		88,163,634			85,614,933
Distributions reinvested		171,009			3,007,402
Cost of shares redeemed		(89,747,360	)		(88,117,410	)
Net increase (decrease) from capital share transactions		(1,412,717	)		504,925
Net increase in net assets		3,059,784			8,509,765
Net assets:
Beginning of year		39,352,838			30,843,073
End of year	$	42,412,622		$	39,352,838
Accumulated/(Undistributed) net investment income/(loss) at end of year	$	—		$	171,009
Capital share activity:
Shares sold		3,291,280			3,620,410
Shares issued from reinvestment of distributions		5,981			117,111
Shares redeemed		(3,432,168	)		(3,750,065	)
Net decrease in shares		(134,907	)		(12,544	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 35

ENERGY FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	26.37		$	20.49		$	39.83		$	33.14		$	39.20
Income (loss) from investment operations:
Net investment income (loss)a		(.05	)		.11			(.03	)		(.11	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		5.06			7.73			(18.29	)		11.01			5.28
Total from investment operations		5.01			7.84			(18.32	)		10.90			5.15
Less distributions from:
Net investment income		(.14	)		—			—			—			—
Net realized gains		—			(1.96	)		(1.02	)		(4.21	)		(11.21	)
Total distributions		(.14	)		(1.96	)		(1.02	)		(4.21	)		(11.21	)
Net asset value, end of period	$	31.24		$	26.37		$	20.49		$	39.83		$	33.14
Total Returnb		19.05	%		38.50	%		(46.03	%)		33.22	%		11.93	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	42,413		$	39,353		$	30,843		$	101,458		$	70,190
Ratios to average net assets:
Net investment income (loss)		(0.20	%)		0.48	%		(0.08	%)		(0.27	%)		(0.31	%)
Total expenses		1.65	%		1.65	%		1.60	%		1.58	%		1.59	%
Portfolio turnover rate		224	%		206	%		154	%		217	%		146	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

36 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

ENERGY SERVICES FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the energy services field, including those that provide services and equipment in the areas of oil, coal and gas exploration and production (“Energy Services Companies”).

Inception: May 2, 2001

The energy equipment and services providers that make up this Fund, and typically are sensitive to changes in the price of oil, responded to the jump in oil prices over 2010. Global oil demand grew 2.9% to an all time high of 87.45 million barrels a day in 2010, according to the International Energy Agency. The price of a barrel of oil finished the year near $92, climbing about 15% for the year.

For the one-year period ended December 31, 2010, Energy Services Fund returned 26.05%, compared with the S&P 500^® Index, which returned 15.06%. The Energy Equipment & Services holdings in this Fund, which makes up 99% of the portfolio, rose about 28% for the year, contributing most of the Fund’s return for the period.

Schlumberger Ltd., National Oilwell Varco, Inc. and Halliburton Co. were among the Fund’s best-performing stocks for the year. The Fund’s worst-performing holdings included Diamond Offshore Drilling, Inc., Transocean Ltd. and Noble Corp.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 2, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
ENERGY SERVICES FUND		26.05	%		5.72	%		6.10	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 ENERGY INDEX		20.46	%		8.32	%		10.40	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Energy Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Schlumberger Ltd.	11.2	%
Halliburton Co.	6.4	%
National Oilwell Varco, Inc.	5.6	%
Transocean Ltd.	5.4	%
Baker Hughes, Inc.	5.2	%
Weatherford International Ltd.	4.3	%
Cameron International Corp.	3.6	%
FMC Technologies, Inc.	3.4	%
Diamond Offshore Drilling, Inc.	3.2	%
Nabors Industries Ltd.	2.8	%
Top Ten Total	51.1	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 37

SCHEDULE OF INVESTMENTS
ENERGY SERVICES FUND December 31, 2010

	Shares		Value
COMMON STOCKS† - 99.6%
ENERGY - 99.6%
Schlumberger Ltd.		55,556	$	4,638,926
Halliburton Co.		64,914		2,650,439
National Oilwell Varco, Inc.		34,817		2,341,443
Transocean Ltd.*		32,275		2,243,435
Baker Hughes, Inc.		37,926		2,168,229
Weatherford International Ltd.*		78,385		1,787,178
Cameron International Corp.*		29,751		1,509,268
FMC Technologies, Inc.*		15,965		1,419,448
Diamond Offshore Drilling, Inc.		20,069		1,342,014
Nabors Industries Ltd.*		49,824		1,168,871
Noble Corp.		30,906		1,105,508
Pride International, Inc.*		31,910		1,053,030
Helmerich & Payne, Inc.		20,137		976,242
McDermott International, Inc.*		46,449		961,030
Rowan Companies, Inc.*		25,870		903,122
Ensco plc ADR		16,565		884,240
Oceaneering International, Inc.*		11,640		857,053
Tenaris S.A. ADR		16,285		797,639
Patterson-UTI Energy, Inc.		36,468		785,885
Oil States International, Inc.*		12,241		784,526
Dril-Quip, Inc.*		9,705		754,273
Tidewater, Inc.		13,639		734,324
Superior Energy Services, Inc.*		20,738		725,623
CARBO Ceramics, Inc.		6,598		683,157
Atwood Oceanics, Inc.*		17,888		668,475
Core Laboratories N.V.		7,366		655,942
Complete Production Services, Inc.*		21,745		642,565
Seadrill, Ltd.		18,920		641,766
RPC, Inc.		35,321		640,017
SEACOR Holdings, Inc.		6,199		626,657
Key Energy Services, Inc.*		45,281		587,747
Lufkin Industries, Inc.		8,614		537,427
Dresser-Rand Group, Inc.*		12,453		530,373
Helix Energy Solutions Group, Inc.*		40,326		489,558
Unit Corp.*		9,025		419,482
Bristow Group, Inc.*		8,664		410,240
Exterran Holdings, Inc.*		15,840		379,368
ION Geophysical Corp.*		34,110		289,253
Hornbeck Offshore Services, Inc.*		12,765		266,533
Tetra Technologies, Inc.*		19,339		229,554
Total Energy				41,289,860
Total Common Stocks (Cost $24,147,295)				41,289,860

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 1.1%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	468,820		468,820
Total Repurchase Agreement (Cost $468,820)				468,820
Total Investments — 100.7% (Cost $24,616,115)			$	41,758,680
Liabilities, Less Cash & Other Assets — (0.7)%				(288,848	)
Total Net Assets — 100.0%			$	41,469,832

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

ADR — American Depositary Receipt

plc — Public Limited Company

38 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	41,289,860
Repurchase agreements, at value		468,820
Total investments		41,758,680
Cash		29
Receivables:
Dividends		11,886
Total assets		41,770,595
Liabilities:
Payable for:
Fund shares redeemed		215,608
Management fees		28,226
Custodian fees		1,096
Transfer agent/maintenance fees		8,302
Investor service fees		8,302
Portfolio accounting fees		3,320
Other		35,909
Total liabilities		300,763
Net assets	$	41,469,832
Net assets consist of:
Paid in capital	$	25,478,960
Accumulated net investment loss		—
Accumulated net realized loss on investments		(1,151,693	)
Net unrealized appreciation on investments		17,142,565
Net assets	$	41,469,832
Capital shares outstanding		1,498,200
Net asset value per share	$	27.68
Investments, at cost	$	24,147,295
Repurchase agreements, at cost		468,820
Total cost	$	24,616,115

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $888)	$	306,159
Interest		279
Total investment income		306,438
Expenses:
Management fees		263,946
Transfer agent and administrative fees		77,631
Investor service fees		77,631
Portfolio accounting fees		31,052
Trustees’ fees*		3,850
Audit and outside service fees		29,039
Printing fees		26,982
Miscellaneous		2,780
Total expenses		512,911
Net investment loss		(206,473	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,650,800
Net realized gain		5,650,800
Net change in unrealized appreciation (depreciation) on:
Investments		(1,061,538	)
Net change in unrealized appreciation (depreciation)		(1,061,538	)
Net realized and unrealized gain		4,589,262
Net increase in net assets resulting from operations	$	4,382,789

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 39

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(206,473	)	$	(106,716	)
Net realized gain (loss) on investments		5,650,800			(3,019,409	)
Net change in unrealized appreciation (depreciation) on investments		(1,061,538	)		17,820,008
Net increase in net assets resulting from operations		4,382,789			14,693,883
Distributions to shareholders from:
Net realized gains		—			(2,202,081	)
Total distributions to shareholders		—			(2,202,081	)
Capital share transactions:
Proceeds from sale of shares		111,238,890			101,081,304
Distributions reinvested		—			2,202,081
Cost of shares redeemed		(115,652,133	)		(95,872,426	)
Net increase (decrease) from capital share transactions		(4,413,243	)		7,410,959
Net increase (decrease) in net assets		(30,454	)		19,902,761
Net assets:
Beginning of year		41,500,286			21,597,525
End of year	$	41,469,832		$	41,500,286
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		4,873,240			5,247,177
Shares issued from reinvestment of distributions		—			102,090
Shares redeemed		(5,264,620	)		(4,983,087	)
Net increase (decrease) in shares		(391,380	)		366,180

40 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	21.96		$	14.18		$	38.67		$	29.79		$	30.92
Income (loss) from investment operations:
Net investment lossa		(.15	)		(.06	)		(.28	)		(.34	)		(.37	)
Net gain (loss) on investments (realized and unrealized)		5.87			8.89			(21.79	)		11.37			4.01
Total from investment operations		5.72			8.83			(22.07	)		11.03			3.64
Less distributions from:
Net realized gains		—			(1.05	)		(2.42	)		(2.15	)		(4.77	)
Total distributions		—			(1.05	)		(2.42	)		(2.15	)		(4.77	)
Net asset value, end of period	$	27.68		$	21.96		$	14.18		$	38.67		$	29.79
Total Returnb		26.05	%		62.42	%		(57.60	%)		37.10	%		10.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	41,470		$	41,500		$	21,598		$	95,917		$	43,910
Ratios to average net assets:
Net investment loss		(0.66	%)		(0.30	%)		(0.78	%)		(0.91	%)		(1.08	%)
Total expenses		1.65	%		1.65	%		1.60	%		1.58	%		1.59	%
Portfolio turnover rate		307	%		247	%		122	%		193	%		184	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 41

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

FINANCIAL SERVICES FUND

OBJECTIVE: Seeks capital appreciation by investing in companies involved in the financial services sector (“Financial Services Companies”).

Inception: July 20, 2001

Gradually improving credit conditions and some easing in lending standards helped the Financial Services sector to finish the year strongly and perform in-line with the market for the year. More financial institutions have been repaying government loans, and prospects for capital markets activity, weak throughout the year, are improving. New regulations, however, are limiting banks’ proprietary trading, and new capital requirements could hold back lending—both to the detriment of profits. Although housing continues to stabilize, it hasn’t returned to normal, and the industry may be at risk as foreclosures mount. For the year, all industries were positive contributors to Fund performance. Insurance, commercial banks and REITs were among the highest contributing segments. Capital markets and diversified financial services were among the lowest.

For the one-year period ended December 31, 2010, Financial Services Fund returned 14.36%, while the S&P 500^® Index gained 15.06% over the same period.

American International Group, Inc., Wells Fargo & Co. and Equity Residential were among the stocks which contributed the most to Fund performance during the year. Bank of America Corp., BlackRock, Inc. and Assured Guaranty Ltd. were among the stocks that contributed the least to Fund performance for the period.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
July 20, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/20/01)
FINANCIAL SERVICES FUND		14.36	%		-7.59	%		-1.66	%
S&P 500 INDEX		15.06	%		2.29	%		2.35	%
S&P 500 FINANCIALS INDEX		12.18	%		-10.58	%		-3.37	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Financials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Berkshire Hathaway, Inc. — Class B	3.1	%
JPMorgan Chase & Co.	3.0	%
Wells Fargo & Co.	2.9	%
Bank of America Corp.	2.7	%
Goldman Sachs Group, Inc.	2.1	%
U.S. Bancorp	1.6	%
American Express Co.	1.6	%
MetLife, Inc.	1.5	%
American International Group, Inc.	1.5	%
Morgan Stanley	1.5	%
Top Ten Total	21.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

42 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

FINANCIAL SERVICES FUND

	Shares		VALUE
COMMON STOCKS† - 99.8%
FINANCIALS - 99.8%
Berkshire Hathaway, Inc. — Class B*		3,107	$	248,931
JPMorgan Chase & Co.		5,521		234,201
Wells Fargo & Co.		7,333		227,250
Bank of America Corp.		15,779		210,492
Goldman Sachs Group, Inc.		1,001		168,328
U.S. Bancorp		4,773		128,728
American Express Co.		2,960		127,043
MetLife, Inc.		2,637		117,188
American International Group, Inc.*		2,017		116,220
Morgan Stanley		4,232		115,153
Bank of New York Mellon Corp.		3,613		109,113
BlackRock, Inc. — Class A		553		105,391
PNC Financial Services Group, Inc.		1,685		102,313
Simon Property Group, Inc.		968		96,306
Prudential Financial, Inc.		1,598		93,819
Aflac, Inc.		1,612		90,965
Travelers Companies, Inc.		1,600		89,136
Franklin Resources, Inc.		783		87,077
State Street Corp.		1,844		85,451
CME Group, Inc. — Class A		261		83,977
ACE Ltd.		1,315		81,859
Charles Schwab Corp.		4,689		80,229
Capital One Financial Corp.		1,853		78,864
BB&T Corp.		2,890		75,978
Public Storage		745		75,558
Chubb Corp.		1,265		75,445
Itau Unibanco Holding S.A. ADR		3,073		73,783
Allstate Corp.		2,311		73,675
T. Rowe Price Group, Inc.		1,130		72,930
SunTrust Banks, Inc.		2,408		71,060
Loews Corp.		1,819		70,777
Vornado Realty Trust		840		69,997
Banco Bradesco S.A. ADR		3,440		69,798
Equity Residential		1,315		68,314
Ameriprise Financial, Inc.		1,181		67,967
Marsh & McLennan Companies, Inc.		2,483		67,885
AON Corp.		1,473		67,773
General Growth Properties, Inc.		4,323		66,920
HCP, Inc.		1,794		66,001
Northern Trust Corp.		1,176		65,162
Progressive Corp.		3,229		64,160
ICICI Bank Ltd. ADR		1,231		62,338
Fifth Third Bancorp		4,230		62,096
Boston Properties, Inc.		716		61,648
Host Hotels & Resorts, Inc.		3,449		61,634
Hartford Financial Services Group, Inc.		2,301		60,953
Invesco Ltd.		2,523		60,703
TD Ameritrade Holding Corp.		3,134		59,515
Annaly Capital Management, Inc.		3,310		59,315
HSBC Holdings plc ADR		1,153		58,849
Banco Santander Brasil S.A. ADR		4,320		58,752
M&T Bank Corp.		668		58,149
Principal Financial Group, Inc.		1,785		58,120
Toronto-Dominion Bank		772		57,367
HDFC Bank Ltd. ADR		340		56,817
Weyerhaeuser Co.		2,980		56,411
Discover Financial Services		3,035		56,239
UBS AG		3,411		56,179
CIT Group, Inc.*		1,185		55,814
Regions Financial Corp.		7,955		55,685
Royal Bank of Canada		1,058		55,397
Brookfield Properties Corp.		3,120		54,694
Manulife Financial Corp.		3,178		54,598
AvalonBay Communities, Inc.		484		54,474
Credit Suisse Group AG ADR		1,348		54,473
Banco Santander S.A. ADR		5,114		54,464
Deutsche Bank AG		1,034		53,820
China Life Insurance Company Ltd. ADR		878		53,707
IntercontinentalExchange, Inc.*		443		52,783
Lincoln National Corp.		1,894		52,672
New York Community Bancorp, Inc.		2,768		52,177
Ventas, Inc.		981		51,483
KeyCorp		5,759		50,967
ProLogis		3,511		50,699
NYSE Euronext		1,647		49,377
Unum Group		2,020		48,924
Kimco Realty Corp.		2,709		48,870
Comerica, Inc.		1,140		48,154
Health Care REIT, Inc.		998		47,545
XL Group plc — Class A		2,152		46,957
Leucadia National Corp.		1,599		46,659
Hudson City Bancorp, Inc.		3,622		46,144
Genworth Financial, Inc. — Class A*		3,425		45,005
CB Richard Ellis Group, Inc. — Class A*		2,173		44,503
Macerich Co.		938		44,433
Huntington Bancshares, Inc.		6,464		44,408
Moody’s Corp.		1,665		44,189
Plum Creek Timber Company, Inc.		1,172		43,891
PartnerRe Ltd.		545		43,791
SLM Corp.*		3,423		43,096
SL Green Realty Corp.		612		41,316
Legg Mason, Inc.		1,135		41,166
People’s United Financial, Inc.		2,932		41,077
AMB Property Corp.		1,284		40,716
Cincinnati Financial Corp.		1,282		40,627
Affiliated Managers Group, Inc.*		404		40,085
Digital Realty Trust, Inc.		771		39,737
Lazard Ltd. — Class A		1,005		39,687
Nationwide Health Properties, Inc.		1,076		39,145
Federal Realty Investment Trust		499		38,887
MSCI, Inc. — Class A*		990		38,570
Everest Re Group Ltd.		454		38,508

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 43

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

FINANCIAL SERVICES FUND

	Shares		Value
NASDAQ OMX Group, Inc.*		1,619	$	38,386
Zions Bancorporation		1,577		38,211
Torchmark Corp.		638		38,114
Credicorp Ltd.		320		38,051
Jefferies Group, Inc.		1,426		37,974
Axis Capital Holdings Ltd.		1,033		37,064
UDR, Inc.		1,570		36,926
SEI Investments Co.		1,551		36,898
Arch Capital Group Ltd.*		415		36,541
Assurant, Inc.		947		36,478
Alexandria Real Estate Equities, Inc.		497		36,410
Rayonier, Inc.		690		36,239
Barclays plc ADR		2,182		36,047
Realty Income Corp.		1,030		35,226
W.R. Berkley Corp.		1,284		35,156
Marshall & Ilsley Corp.		5,020		34,738
Liberty Property Trust		1,083		34,569
Jones Lang LaSalle, Inc.		400		33,568
Total Financials				7,876,272
Total Common Stocks
(Cost $5,029,272)				7,876,272

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	49,256		49,256
Total Repurchase Agreement
(Cost $49,256)				49,256
Total Investments — 100.4%
(Cost $5,078,528)			$	7,925,528
Liabilities, Less Cash & Other Assets — (0.4)%				(29,790	)
Total Net Assets — 100.0%			$	7,895,738

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4. ADR — American Depositary Receipt plc — Public Limited Company REIT — Real Estate Investment Trust

44 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	7,876,272
Repurchase agreements, at value		49,256
Total investments		7,925,528
Cash		277
Receivables:
Securities sold		217,461
Fund shares sold		9,942
Foreign taxes reclaim		1,168
Dividends		13,498
Total assets		8,167,874
Liabilities:
Payable for:
Fund shares redeemed		252,264
Management fees		5,565
Custodian fees		216
Transfer agent/maintenance fees		1,637
Investor service fees		1,637
Portfolio accounting fees		654
Other		10,163
Total liabilities		272,136
Net assets	$	7,895,738
Net assets consist of:
Paid in capital	$	14,813,918
Undistributed net investment income		9,374
Accumulated net realized loss on investments		(9,774,554	)
Net unrealized appreciation on investments		2,847,000
Net assets	$	7,895,738
Capital shares outstanding		519,844
Net asset value per share	$	15.19
Investments, at cost	$	5,029,272
Repurchase agreements, at cost		49,256
Total cost	$	5,078,528

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $2,555)	$	190,952
Interest		108
Total investment income		191,060
Expenses:
Management fees		93,973
Transfer agent and administrative fees		27,639
Investor service fees		27,639
Portfolio accounting fees		11,056
Trustees’ fees*		1,489
Miscellaneous		19,891
Total expenses		181,687
Net investment income		9,373
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,334,873
Net realized gain		1,334,873
Net change in unrealized appreciation (depreciation) on:
Investments		(1,424,557	)
Net change in unrealized appreciation (depreciation)		(1,424,557	)
Net realized and unrealized loss		(89,684	)
Net decrease in net assets resulting from operations	$	(80,311	)

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 45

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	9,373		$	71,316
Net realized gain (loss) on investments		1,334,873			(402,332	)
Net change in unrealized appreciation (depreciation) on investments		(1,424,557	)		4,114,331
Net increase (decrease) in net assets resulting from operations		(80,311	)		3,783,315
Distributions to shareholders from:
Net investment income		(72,499	)		(254,482	)
Total distributions to shareholders		(72,499	)		(254,482	)
Capital share transactions:
Proceeds from sale of shares		74,034,490			57,021,322
Distributions reinvested		72,499			254,482
Cost of shares redeemed		(83,221,418	)		(51,948,558	)
Net increase (decrease) from capital share transactions		(9,114,429	)		5,327,246
Net increase (decrease) in net assets		(9,267,239	)		8,856,079
Net assets:
Beginning of year		17,162,977			8,306,898
End of year	$	7,895,738		$	17,162,977
Undistributed net investment income at end of year	$	9,374		$	71,414
Capital share activity:
Shares sold		5,212,942			5,025,328
Shares issued from reinvestment of distributions		5,038			18,893
Shares redeemed		(5,974,984	)		(4,495,513	)
Net increase (decrease) in shares		(757,004	)		548,708

46 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	13.44		$	11.41		$	21.96		$	32.18		$	29.10
Income (loss) from investment operations:
Net investment incomea		.01			.06			.32			.28			.26
Net gain (loss) on investments (realized and unrealized)		1.91			2.19			(10.87	)		(6.23	)		4.59
Total from investment operations		1.92			2.25			(10.55	)		(5.95	)		4.85
Less distributions from:
Net investment income		(.17	)		(.22	)		—			(.66	)		(.39	)
Net realized gains		—			—			—			(3.61	)		(1.38	)
Total distributions		(.17	)		(.22	)		—			(4.27	)		(1.77	)
Net asset value, end of period	$	15.19		$	13.44		$	11.41		$	21.96		$	32.18
Total Returnb		14.36	%		19.68	%		(48.04	%)		(18.80	%)		16.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,896		$	17,163		$	8,307		$	17,508		$	50,190
Ratios to average net assets:
Net investment income		0.08	%		0.54	%		1.87	%		0.90	%		0.83	%
Total expenses		1.64	%		1.64	%		1.61	%		1.59	%		1.59	%
Portfolio turnover rate		617	%		357	%		422	%		525	%		330	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 47

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)	December 31, 2010
HEALTH CARE FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the health care industry (“Health Care Companies”).

Inception: June 19, 2001

The health care sector did not stand out in 2010, despite attractive fundamentals, largely because it was beaten down prior to passage of the healthcare bill in March, even though the more damaging provisions to profitability will take effect well down the road. Investors in 2010 appeared to be more concerned over the strength of the drug pipeline and how regulations could impact the group. The large pharmaceutical industry is looking at a significant level of patent expirations, and investors are unsure where future growth will come from.

For the one-year period ended December 31, 2010, Health Care Fund returned 6.77%, compared with a 15.06% gain for the S&P 500^® Index. The biggest positive contributors to Fund performance included Pharmaceuticals, which composed 34% of the portfolio. The Health Care Providers & Services segment was also a significant contributor to Fund return. All industries in the portfolio generated positive returns for the year, but Health Care Technology was the segment contributing least to Fund performance.

The year’s top performing holdings included Illumina, Inc., Genzyme Corp. and Valeant Pharmaceuticals International, Inc. Medtronic, Gilead Sciences, Inc. and Amylin Pharmaceuticals, Inc. were among the Fund’s weakest performers for the period.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
June 19, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the rein vestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(06/19/01)
HEALTH CARE FUND		6.77	%		2.19	%		2.58	%
S&P 500 INDEX		15.06	%		2.29	%		2.33	%
S&P 500 HEALTH CARE INDEX		2.90	%		1.87	%		0.83	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Health Care Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Johnson & Johnson	4.0	%
Pfizer, Inc.	3.7	%
Merck & Company, Inc.	3.3	%
Abbott Laboratories	2.7	%
Alcon, Inc.	2.2	%
Teva Pharmaceutical Industries Ltd. ADR	2.2	%
Amgen, Inc.	2.2	%
Bristol-Myers Squib b Co.	2.1	%
UnitedHealth Group, Inc.	2.0	%
Eli Lilly & Co.	2.0	%
Top Ten Total	26.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

48 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS	December 31, 2010
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 99.3%
HEALTH CARE - 99.3%
Johnson & Johnson		7,382	$	456,577
Pfizer, Inc.		23,961		419,557
Merck & Company, Inc.		10,234		368,833
Abbott Laboratories		6,308		302,216
Alcon, Inc.		1,529		249,839
Teva Pharmaceutical Industries Ltd. ADR		4,782		249,286
Amgen, Inc.*		4,516		247,928
Bristol-Myers Squibb Co.		8,957		237,181
UnitedHealth Group, Inc.		6,224		224,749
Eli Lilly & Co.		6,412		224,677
Medtronic, Inc.		5,987		222,058
Baxter International, Inc.		3,782		191,445
Gilead Sciences, Inc.*		5,212		188,883
Express Scripts, Inc. — Class A*		3,426		185,175
Celgene Corp.*		3,128		184,990
Medco Health Solutions, Inc.*		2,926		179,276
WellPoint, Inc.*		2,946		167,510
Covidien plc		3,661		167,161
Thermo Fisher Scientific, Inc.*		2,978		164,862
Stryker Corp.		3,002		161,207
Allergan, Inc.		2,319		159,246
Becton Dickinson and Co.		1,852		156,531
Genzyme Corp.*		2,151		153,151
McKesson Corp.		2,125		149,558
Biogen Idec, Inc.*		2,079		139,397
St. Jude Medical, Inc.*		3,169		135,475
Agilent Technologies, Inc.*		3,250		134,648
Cardinal Health, Inc.		3,353		128,453
Novartis AG ADR		2,115		124,679
Aetna, Inc.		4,047		123,474
Boston Scientific Corp.*		15,230		115,291
Zimmer Holdings, Inc.*		2,122		113,909
Life Technologies Corp.*		2,050		113,775
CIGNA Corp.		3,019		110,677
AmerisourceBergen Corp. — Class A		3,200		109,184
Intuitive Surgical, Inc.*		419		107,997
Humana, Inc.*		1,954		106,962
Mylan, Inc.*		5,041		106,516
Quest Diagnostics, Inc.		1,959		105,727
Laboratory Corporation of America Holdings*		1,201		105,592
Hospira, Inc.*		1,896		105,588
Forest Laboratories, Inc.*		3,287		105,118
Edwards Lifesciences Corp.*		1,291		104,364
CR Bard, Inc.		1,108		101,681
Varian Medical Systems, Inc.*		1,447		100,248
Illumina, Inc.*		1,540		97,544
Cerner Corp.*		1,028		97,393
Alexion Pharmaceuticals, Inc.*		1,173		94,485
Vertex Pharmaceuticals, Inc.*		2,651		92,865
Waters Corp.*		1,182		91,853
DaVita, Inc.*		1,320		91,727
Watson Pharmaceuticals, Inc.*		1,775		91,679
CareFusion Corp.*		3,330		85,581
GlaxoSmithKline plc ADR		2,165		84,911
Warner Chilcott plc — Class A		3,749		84,577
Perrigo Co.		1,326		83,976
Henry Schein, Inc.*		1,360		83,490
Beckman Coulter, Inc.		1,070		80,496
ResMed, Inc.*		2,308		79,949
Valeant Pharmaceuticals International, Inc.		2,790		78,929
Hologic, Inc.*		4,150		78,103
AstraZeneca plc ADR		1,680		77,599
DENTSPLY International, Inc.		2,262		77,293
Mettler-Toledo International, Inc.*		510		77,117
Dendreon Corp.*		2,198		76,754
QIAGEN N.V.*		3,855		75,365
Sanofi-Aventis S.A. ADR		2,314		74,580
Cephalon, Inc.*		1,207		74,496
Human Genome Sciences, Inc.*		3,118		74,489
Endo Pharmaceuticals Holdings, Inc.*		2,015		71,956
Universal Health Services, Inc. — Class B		1,616		70,167
Coventry Health Care, Inc.*		2,640		69,696
IDEXX Laboratories, Inc.*		997		69,012
Patterson Companies, Inc.		2,214		67,815
United Therapeutics Corp.*		1,056		66,760
Community Health Systems, Inc.*		1,775		66,332
Allscripts Healthcare Solutions, Inc.*		3,435		66,193
King Pharmaceuticals, Inc.*		4,706		66,119
Covance, Inc.*		1,249		64,211
Tenet Healthcare Corp.*		9,410		62,953
Mednax, Inc.*		935		62,916
Omnicare, Inc.		2,468		62,663
PerkinElmer, Inc.		2,366		61,090
Gen-Probe, Inc.*		1,010		58,934
Salix Pharmaceuticals Ltd.*		1,230		57,761
Health Net, Inc.*		2,115		57,718
Regeneron Pharmaceuticals, Inc.*		1,740		57,124
BioMarin Pharmaceutical, Inc.*		2,120		57,092
Lincare Holdings, Inc.		2,123		56,960
Cooper Companies, Inc.		1,000		56,340
Hill -Rom Holdings, Inc.		1,360		53,543
Pharmaceutical Product Development, Inc.		1,951		52,950
Total Health Care				11,252,207
Total Common Stocks
(Cost $7,390,878)				11,252,207

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 49

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
HEALTH CARE FUND

	FACE
	AMOUNT		VALUE
REPURCHASE AGREEMENT††,1 - 0.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	76,201	$	76,201
Total Repurchase Agreement
(Cost $76,201)				76,201
Total Investments - 100.0%
(Cost $7,467,079)			$	11,328,408
Liabilities, Less Cash & Other Assets - 0.0%				(24	)
Total Net Assets - 100.0%			$	11,328,384

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4. ADR — American Depositary Receipt plc — Public Limited Company

50 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	11,252,207
Repurchase agreements, at value		76,201
Total investments		11,328,408
Receivables:
Fund shares sold		388,675
Dividends		8,981
Total assets		11,726,064
Liabilities:
Payable for:
Securities purchased		362,064
Management fees		8,638
Custodian fees		335
Transfer agent/maintenance fees		2,541
Investor service fees		2,541
Portfolio accounting fees		1,016
Other		20,545
Total liabilities		397,680
Net assets	$	11,328,384
Net assets consist of:
Paid in capital	$	16,793,628
Accumulated net investment loss		—
Accumulated net realized loss on investments		(9,326,573	)
Net unrealized appreciation on investments		3,861,329
Net assets	$	11,328,384
Capital shares outstanding		402,286
Net asset value per share	$	28.16
Investments, at cost	$	7,390,878
Repurchase agreements, at cost		76,201
Total cost	$	7,467,079

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $1,654)	$	284,609
Interest		150
Total investment income		284,759
EXPENSES:
Management fees		162,740
Transfer agent and administrative fees		47,865
Investor service fees		47,865
Portfolio accounting fees		19,146
Trustees’ fees*		2,450
Miscellaneous		34,247
Total expenses		314,313
Net investment loss		(29,554	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,801,248
Net realized gain		2,801,248
Net change in unrealized appreciation (depreciation) on:
Investments		(2,390,384	)
Net change in unrealized appreciation (depreciation)		(2,390,384	)
Net realized and unrealized gain		410,864
Net increase in net assets resulting from operations	$	381,310

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 51

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(29,554	)	$	41,798
Net realized gain (loss) on investments		2,801,248			(899,015	)
Net change in unrealized appreciation (depreciation) on investments		(2,390,384	)		4,337,116
Net increase in net assets resulting from operations		381,310			3,479,899
Distributions to shareholders from:
Net investment income		(41,798	)		—
Total distributions to shareholders		(41,798	)		—
Capital share transactions:
Proceeds from sale of shares		92,694,576			72,742,133
Distributions reinvested		41,798			—
Cost of shares redeemed		(108,643,765	)		(85,103,361	)
Net decrease from capital share transactions		(15,907,391	)		(12,361,228	)
Net decrease in net assets		(15,567,879	)		(8,881,329	)
Net assets:
Beginning of year		26,896,263			35,777,592
End of year	$	11,328,384		$	26,896,263
Accumulated/(Undistributed) net investment income/(loss) at end of year	$	—		$	41,798
Capital share activity:
Shares sold		3,454,463			3,234,301
Shares issued from reinvestment of distributions		1,534			—
Shares redeemed		(4,070,687	)		(3,903,309	)
Net decrease in shares		(614,690	)		(669,008	)

52 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	26.45		$	21.22		$	29.61		$	28.41		$	28.17
Income (loss) from investment operations:
Net investment income (loss)a		(.04	)		.04			—	c		(.01	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		1.83			5.19			(7.40	)		1.73			1.59
Total from investment operations		1.79			5.23			(7.40	)		1.72			1.44
Less distributions from:
Net investment income		(.08	)		—			—			—			—
Net realized gains		—			—			(.99	)		(.52	)		(1.20	)
Total distributions		(.08	)		—			(.99	)		(.52	)		(1.20	)
Net asset value, end of period	$	28.16		$	26.45		$	21.22		$	29.61		$	28.41
Total Returnc		6.77	%		24.65	%		(24.86	%)		6.02	%		5.11	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,328		$	26,896		$	35,778		$	37,521		$	40,825
Ratios to average net assets:
Net investment income (loss)		(0.15	%)		0.17	%		(0.01	%)		(0.02	%)		(0.52	%)
Total expenses		1.64	%		1.67	%		1.62	%		1.59	%		1.59	%
Portfolio turnover rate		455	%		301	%		266	%		424	%		251	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Net investment income is less than $0.01 per share.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 53

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INTERNET FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that provide products or services designed for or related to the Internet (“Internet Companies”).

Inception: May 24, 2001

Internet companies benefited from improving economic conditions, retail spending and more confident consumers. The industry continues to build on new trends, such as cloud computing, which can help address the explosion of data-heavy media being transferred across the web. The industry is also full of innovation, including the use of technology to solve everyday problems that creates markets quickly, like online dining reservations or locally focused advertising.

For the one-year period ended December 31, 2010, Internet Fund returned 20.77%, compared with a gain of 15.06% for the S&P 500^® Index. Within the sector, Internet Software and Services, Internet & Catalog Retail and Software were the biggest positive contributors to Fund performance. All industries had positive contributions to performance, but among the weaker industries were the Capital Markets, Computer Peripherals and Media segments.

Baidu, Inc. (ADS), Netflix, Inc. and Priceline.com, Inc. were among the stocks which added the most to Fund performance for the year, while Cisco Systems, Inc., Google, Inc. (Class A) and Research in Motion Ltd. were among the stocks which added the least to Fund performance for the year.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 24, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/24/01)
INTERNET FUND		20.77	%		5.98	%		-1.12	%
S&P 500 INDEX		15.06	%		2.29	%		1.64	%
S&P 500 INFORMATION TECHNOLOGY INDEX		10.22	%		5.02	%		-0.12	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and
reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Google, Inc. — Class A	9.2	%
Cisco Systems, Inc.	7.2	%
QUALCOMM, Inc.	6.0	%
Amazon.com, Inc.	5.9	%
Time Warner, Inc.	4.1	%
eBay, Inc.	3.9	%
Baidu, Inc. ADR	3.8	%
Research In Motion Ltd.	3.7	%
Broadcom Corp. — Class A	3.2	%
Yahoo!, Inc.	3.2	%
Top Ten Total	50.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

54 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS	December 31, 2010
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.5%
INFORMATION TECHNOLOGY - 78.6%
Google, Inc. — Class A*		2,602	$	1,545,510
Cisco Systems, Inc.*		59,935		1,212,485
QUALCOMM, Inc.		20,455		1,012,318
eBay, Inc.*		23,707		659,766
Baidu, Inc. ADR*		6,672		644,048
Research In Motion Ltd.*		10,636		618,271
Broadcom Corp. — Class A		12,219		532,137
Yahoo!, Inc.*		31,885		530,248
Juniper Networks, Inc.*		13,408		495,023
Intuit, Inc.*		8,898		438,671
Symantec Corp.*		24,390		408,289
F5 Networks, Inc.*		2,741		356,769
Check Point Software Technologies Ltd.*		7,570		350,188
Red Hat, Inc.*		7,096		323,932
BMC Software, Inc.*		6,850		322,909
Akamai Technologies, Inc.*		6,829		321,305
McAfee, Inc.*		6,540		302,867
VeriSign, Inc.		8,003		261,458
Sina Corp.*		3,350		230,547
Rackspace Hosting, Inc.*		7,222		226,843
Equinix, Inc.*		2,652		215,502
TIBCO Software, Inc. *		9,990		196,903
Monster Worldwide, Inc.*		8,245		194,829
MercadoLibre, Inc.*		2,880		191,952
IAC/InterActiveCorp. *		6,259		179,633
Sohu.com, Inc.*		2,740		173,963
VistaPrint N.V.*		3,593		165,278
Ciena Corp.*		7,410		155,981
OpenTable, Inc.*		2,040		143,779
GSI Commerce, Inc.*		6,057		140,522
Digital River, Inc.*		3,877		133,446
ValueClick, Inc.*		8,032		128,753
AOL, Inc.*		5,055		119,854
Earthlink, Inc.		10,608		91,229
WebMD Health Corp. — Class A*		1,749		89,304
Art Technology Group, Inc.*		13,100		78,338
Total Information Technology				13,192,850
CONSUMER DISCRETIONARY - 17.2%
Amazon.com, Inc.*		5,510		991,800
Time Warner, Inc.		21,089		678,433
Priceline.com, Inc.*		1,220		487,451
NetFlix, Inc.*		1,924		338,047
Expedia, Inc.		11,402		286,076
Blue Nile, Inc.*		1,727		98,543
Total Consumer Discretionary				2,880,350
TELECOMMUNICATION SERVICES - 2.4%
Qwest Communications International, Inc.		53,460		406,830
FINANCIALS - 1.3%
E*Trade Financial Corp.*		13,430		214,880
Total Common Stocks
(Cost $11,084,744)				16,694,910

	Face
	AMOUNT
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	103,747		103,747
Total Repurchase Agreement
(Cost $103,747)				103,747
Total Investments - 100.1%
(Cost $11,188,491)			$	16,798,657
Liabilities, Less Cash & Other Assets - (0.1)%				(12,924	)
Total Net Assets - 100.0%			$	16,785,733

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 in puts — See Note 5.
1	Repurchase Agreement — See Note 4. ADR — American Depositary Receipt

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 55

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	16,694,910
Repurchase agreements, at value		103,747
Total investments		16,798,657
Receivables:
Securities sold		299,953
Total assets		17,098,610
Liabilities:
Payable for:
Fund shares redeemed		279,515
Management fees		13,243
Custodian fees		514
Transfer agent/maintenance fees		3,895
Investor service fees		3,895
Portfolio accounting fees		1,558
Other		10,257
Total liabilities		312,877
Net Assets	$	16,785,733
Net assets consist of:
Paid in capital	$	13,350,503
Accumulated net investment loss		—
Accumulated net realized loss on investments		(2,174,936	)
Net unrealized appreciation on investments		5,610,166
Net assets	$	16,785,733
Capital shares outstanding		851,695
Net asset value per share	$	19.71
Investments, at cost	$	11,084,744
Repurchase agreements, at cost		103,747
Total cost	$	11,188,491

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends	$	75,541
Interest		168
Total investment income		75,709
Expenses:
Management fees		126,734
Transfer agent and administrative fees		37,275
Investor service fees		37,275
Portfolio accounting fees		14,910
Trustees’ fees*		2,038
Miscellaneous		28,582
Total expenses		246,814
Net investment loss		(171,105	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,259,443
Net realized gain		4,259,443
Net change in unrealized appreciation (depreciation) on:
Investments		(2,874,173	)
Net change in unrealized appreciation (depreciation)		(2,874,173	)
Net realized and unrealized gain		1,385,270
Net increase in net assets resulting from operations	$	1,214,165

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

56 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From operations:
Net investment loss	$	(171,105	)	$	(239,177	)
Net realized gain on investments		4,259,443			1,096,400
Net change in unrealized appreciation (depreciation) on investments		(2,874,173	)		7,844,290
Net increase in net assets resulting from operations		1,214,165			8,701,513
DISTRIBUTIONS TO SHAREHOLDERS		—			—
Capital share transactions:
Proceeds from sale of shares		59,419,024			73,227,493
Cost of shares redeemed		(74,207,349	)		(53,973,824	)
Net increase (decrease) from capital share transactions		(14,788,325	)		19,253,669
Net increase (decrease) in net assets		(13,574,160	)		27,955,182
Net assets:
Beginning of year		30,359,893			2,404,711
End of year	$	16,785,733		$	30,359,893
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		3,439,213			5,616,975
Shares redeemed		(4,448,309	)		(4,000,662	)
Net increase (decrease) in shares		(1,009,096	)		1,616,313

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 57

INTERNET FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	16.32		$	9.84		$	17.85		$	16.17		$	14.74
Income (loss) from investment operations:
Net investment lossa		(.19	)		(.19	)		(.16	)		(.05	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		3.58			6.67			(7.85	)		1.73			1.64
Total from investment operations		3.39			6.48			(8.01	)		1.68			1.43
Net asset value, end of period	$	19.71		$	16.32		$	9.84		$	17.85		$	16.17
Total Returnb		20.77	%		65.85	%		(44.87	%)		10.39	%		9.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,786		$	30,360		$	2,405		$	24,937		$	9,381
Ratios to average net assets:
Net investment loss		(1.15	%)		(1.36	%)		(1.07	%)		(0.29	%)		(1.33	%)
Total expenses		1.66	%		1.64	%		1.60	%		1.54	%		1.58	%
Portfolio turnover rate		401	%		274	%		341	%		432	%		420	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

58 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

LEISURE FUND

OBJECTIVE: Seeks capital appreciation by investing in companies in leisure and entertainment businesses (“Leisure Companies”).

Inception: May 22, 2001

Profits of consumer discretionary companies were strong during 2010, as consumer spending rebounded along with the overall economy. The Fund is composed largely of media companies and hotels and restaurants, and both benefited from a slightly better outlook for employment toward year end that gave consumers a little more confidence in their ability to spend.

For the one-year period ended December 31, 2010, Leisure Fund returned 30.34%, compared with a gain of 15.06% for the S&P 500^® Index. Within the sector, the Hotels, Restaurants & Leisure segment, which made up 41% of the portfolio, contributed about half of the Fund’s return for the year, while media holdings was the next-largest contributor. Software and Automobiles, which together composed less than 6% of the portfolio, were the weakest segments. All segments were positive for the year.

Among the stocks that contributed the most to the Fund’s annual performance were Las Vegas Sands Corp., Carnival Corp. and Time Warner Cable, Inc. Eastman Kodak Co., DreamWorks Animation SKG, Inc. (Class A) and New York Times Co. (Class A) were among the Fund’s weakest holdings for the period.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 22, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/22/01)
LEISURE FUND		30.34	%		1.77	%		0.71	%
S&P 500 INDEX		15.06	%		2.29	%		1.51	%
S&P 500 CONSUMER DISCRETIONARY INDEX		27.84	%		4.35	%		1.97	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

McDonald’s Corp.	4.7	%
Walt Disney Co.	4.4	%
Comcast Corp. — Class A	4.0	%
Carnival Corp.	3.3	%
News Corp. — Class A	3.3	%
Time Warner, Inc.	3.1	%
DIRECTV — Class A	3.0	%
Las Vegas Sands Corp.	2.9	%
Viacom, Inc. — Class B	2.6	%
Time Warner Cable, Inc. — Class A	2.5	%
Top Ten Total	33.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 59

SCHEDULE OF INVESTMENTS December 31, 2010

LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
CONSUMER DISCRETIONARY - 95.7%
McDonald’s Corp.		7,927	$	608,477
Walt Disney Co.		15,261		572,440
Comcast Corp. — Class A		23,759		521,985
Carnival Corp.		9,282		427,993
News Corp. — Class A		29,368		427,598
Time Warner, Inc.		12,634		406,436
DIRECTV — Class A*		9,741		388,958
Las Vegas Sands Corp.*		8,033		369,116
Viacom, Inc. — Class B		8,526		337,715
Time Warner Cable, Inc. — Class A		4,987		329,292
Starbucks Corp.		10,096		324,384
Yum! Brands, Inc.		6,559		321,719
Discovery Communications, Inc. — Class A*		6,576		274,219
Marriott International, Inc. — Class A		6,216		258,213
CBS Corp. — Class B		12,760		243,078
Wynn Resorts Ltd.		2,308		239,663
Starwood Hotels & Resorts Worldwide, Inc.		3,764		228,776
McGraw-Hill Companies, Inc.		6,223		226,579
Royal Caribbean Cruises Ltd.*		4,724		222,028
Cablevision Systems Corp. — Class A		6,310		213,530
Virgin Media, Inc.		7,498		204,246
Mattel, Inc.		7,988		203,135
DISH Network Corp. — Class A*		10,275		202,006
Liberty Global, Inc. — Class A*		5,511		194,979
Harley-Davidson, Inc.		5,575		193,285
MGM Resorts International*		12,284		182,417
Hasbro, Inc.		3,556		167,772
Chipotle Mexican Grill, Inc. — Class A*		775		164,811
Darden Restaurants, Inc.		3,536		164,212
Ctrip.com International Ltd. ADR*		4,010		162,204
Liberty Media Corp.— Capital*		2,572		160,904
International Game Technology		8,814		155,920
Wyndham Worldwide Corp.		5,101		152,826
Scripps Networks Interactive, Inc. — Class A		2,944		152,352
Grupo Televisa S.A. ADR*		5,432		140,852
Washington Post Co. — Class B		294		129,213
Melco Crown Entertainment Ltd. — Class Participation Certificate ADR*		20,200		128,472
Gannett Company, Inc.		8,430		127,209
Liberty Media Corp. — Starz*		1,872		124,451
Panera Bread Co. — Class A*		1,146		115,987
Penn National Gaming, Inc.*		3,222		113,253
WMS Industries, Inc.*		2,434		110,114
Polaris Industries, Inc.		1,402		109,384
DreamWorks Animation SKG, Inc. — Class A*		3,637		107,182
Bally Technologies, Inc.*		2,410		101,678
Madison Square Garden, Inc. — Class A*		3,780		97,448
Cinemark Holdings, Inc.		5,433		93,665
Live Nation Entertainment, Inc.*		8,192		93,553
Brinker International, Inc.		4,474		93,417
Vail Resorts, Inc.*		1,766		91,903
Cheesecake Factory, Inc.*		2,908		89,159
Gaylord Entertainment Co.*		2,452		88,125
Life Time Fitness, Inc.*		2,147		88,006
Regal Entertainment Group — Class A		7,469		87,686
Brunswick Corp.		4,614		86,466
Valassis Communications, Inc.*		2,637		85,307
Orient-Express Hotels Ltd. — Class A*		6,500		84,435
Meredith Corp.		2,405		83,333
New York Times Co. — Class A*		8,196		80,321
Eastman Kodak Co.*		14,550		77,988
Texas Roadhouse, Inc. — Class A*		4,480		76,922
Cracker Barrel Old Country Store, Inc.		1,358		74,378
Jack in the Box, Inc.*		3,364		71,081
PF Chang’s China Bistro, Inc.		1,445		70,025
Bob Evans Farms, Inc.		2,010		66,250
Total Consumer Discretionary				12,390,531
INFORMATION TECHNOLOGY - 3.8%
Activision Blizzard, Inc.		21,185		263,542
Electronic Arts, Inc.*		9,785		160,278
Take-Two Interactive Software, Inc.*		5,480		67,075
Total Information Technology				490,895
Total Common Stocks (Cost $9,116,751)				12,881,426
WARRANT†† - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Krispy Kreme Doughnuts, Inc. $12.21, 03/02/12		311		96
Total Warrant (Cost $—)				96

60 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

LEISURE FUND

	Face
	Amount		Value
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	70,474	$	70,474
Total Repurchase Agreement (Cost $70,474)				70,474
Total Investments - 100.1% (Cost $9,187,225)			$	12,951,996
Liabilities, Less Cash & Other Assets - (0.1)%				(10,378	)
Total Net Assets - 100.0%			$	12,941,618

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

ADR — American Depositary Receipt

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 61

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	12,881,522
Repurchase agreements, at value		70,474
Total investments		12,951,996
Receivables:
Fund shares sold		578,711
Dividends		9,023
Total assets		13,539,730
Liabilities:
Payable for:
Securities purchased		572,694
Fund shares redeemed		1,415
Management fees		9,761
Custodian fees		396
Transfer agent/maintenance fees		2,871
Investor service fees		2,871
Portfolio accounting fees		1,148
Other		6,956
Total liabilities		598,112
Net assets	$	12,941,618
Net assets consist of:
Paid in capital	$	13,126,739
Accumulated net investment loss		—
Accumulated net realized loss on investments		(3,949,892	)
Net unrealized appreciation on investments		3,764,771
Net assets	$	12,941,618
Capital shares outstanding		238,536
Net asset value per share	$	54.25
Investments, at cost	$	9,116,751
Repurchase agreements, at cost		70,474
Total cost	$	9,187,225

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $645)	$	179,697
Interest		113
Total investment income		179,810
Expenses:
Management fees		113,298
Transfer agent and administrative fees		33,323
Investor service fees		33,323
Portfolio accounting fees		13,329
Trustees’ fees*		1,572
Printing fees		11,865
Miscellaneous		13,685
Total expenses		220,395
Net investment loss		(40,585	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,009,911	)
Net realized loss		(1,009,911	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,621,887
Net change in unrealized appreciation (depreciation)		1,621,887
Net realized and unrealized gain		611,976
Net increase in net assets resulting from operations	$	571,391

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

62 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(40,585	)	$	10,939
Net realized gain (loss) on investments		(1,009,911	)		112,210
Net change in unrealized appreciation (depreciation) on investments		1,621,887			2,209,194
Net increase in net assets resulting from operations		571,391			2,332,343
Distributions to shareholders from:
Net investment income		(10,939	)		—
Total distributions to shareholders		(10,939	)		—
Capital share transactions:
Proceeds from sale of shares		69,465,152			23,593,142
Distributions reinvested		10,939			—
Cost of shares redeemed		(68,816,762	)		(15,805,061	)
Net increase from capital share transactions		659,329			7,788,081
Net increase in net assets		1,219,781			10,120,424
Net assets:
Beginning of year		11,721,837			1,601,413
End of year	$	12,941,618		$	11,721,837
Accumulated/(Undistributed) net investment income/(loss) at end of year	$	—		$	10,939
Capital share activity:
Shares sold		1,466,653			679,704
Shares issued from reinvestment of distributions		209			—
Shares redeemed		(1,509,693	)		(450,891	)
Net increase (decrease) in shares		(42,831	)		228,813

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 63

LEISURE FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008		c	2007		c	2006		c
Per Share Data
Net asset value, beginning of period	$	41.66		$	30.47		$	636.60		$	785.70		$	658.80
Income (loss) from investment operations:
Net investment income (loss)a		(.14	)		.06			(1.07	)		(1.20	)		(.60	)
Net gain (loss) on investments (realized and unrealized)		12.78			11.13			(347.66	)		(15.30	)		155.10
Total from investment operations		12.64			11.19			(348.73	)		(16.50	)		154.50
Less distributions from:
Net investment income		(.05	)		—			—			—			—
Net realized gains		—			—			(257.40	)		(132.60	)		(27.60	)
Total distributions		(.05	)		—			(257.40	)		(132.60	)		(27.60	)
Net asset value, end of period	$	54.25		$	41.66		$	30.47		$	636.60		$	785.70
Total Returnb		30.34	%		36.72	%		(49.09	%)		(2.54	%)		23.47	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,942		$	11,722		$	1,601		$	15,311		$	37,699
Ratios to average net assets:
Net investment income (loss)		(0.30	%)		0.17	%		(0.26	%)		(0.14	%)		(0.07	%)
Total expenses		1.65	%		1.64	%		1.61	%		1.59	%		1.60	%
Portfolio turnover rate		468	%		316	%		255	%		171	%		221	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Per share amounts for the period December 31, 2005 — December 7, 2008 have been restated to reflect a 1:30 reverse share split effective December 8, 2008.

64 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

PRECIOUS METALS FUND

OBJECTIVE: To provide capital appreciation by investing in U.S. and foreign companies that are involved in the precious metals sector, including exploration, mining, production and development, and other precious metals-related services (“Precious Metals Companies”).

Inception: May 29, 1997

The precious metals market and commodities generally moved up strongly in 2010, in conjunction with the improving global economy and demand from China and other fast-growing nations. Concern about economic instability in the West and the potential for inflation in China also drove demand from hedge funds and institutional investors. Participation among individual investors also benefited this group, as they snapped up ETFs and futures contracts in seeking a perceived safe haven. Gold finished the year at $1421 an ounce, up almost 30%, and rising for its tenth straight year. Those attracted to palladium, used heavily in the car parts market, did even better, as that metal rose 97% for the year. The silver market—much smaller than the gold market and thus more sensitive to investor inflows—also grew strongly, with the price of an ounce of silver rising 84%.

For the one-year period ended December 31, 2010, Precious Metals Fund returned 38.08%, compared with the 15.06% increase in the S&P 500^® Index. The Metals & Mining holdings that account for most of the portfolio advanced about 40% for the year.

Freeport-McMoRan Copper & Gold, Inc., Silver Wheaton Corp. and Newmont Mining Corp. were among the stocks which added the most to Fund performance during the year. Jaguar Mining, Inc., Gammon Gold, Inc. and Seabridge Gold, Inc. were among the stocks which contributed the least to Fund performance.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
December 31, 2000 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

	ONE			FIVE			TEN
	YEAR			YEAR			YEAR
PRECIOUS METALS FUND		38.08	%		12.94	%		16.02	%
S&P 500 INDEX		15.06	%		2.29	%		1.41	%
S&P 500 MATERIALS INDEX		22.34	%		7.56	%		8.71	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Materials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Freeport-McMoRan Copper & Gold, Inc. — Class B	11.7	%
Barrick Gold Corp.	7.2	%
Newmont Mining Co.	6.9	%
Silver Wheaton Corp.	6.1	%
Goldcorp, Inc.	5.8	%
Agnico-Eagle Mines Ltd.	4.3	%
Kinross Gold Corp.	3.9	%
Yamana Gold, Inc.	3.7	%
Hecla Mining Co.	3.6	%
Eldorado Gold Corp.	3.3	%
Top Ten Total	56.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 65

SCHEDULE OF INVESTMENTS December 31, 2010

PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 99.6%
MATERIALS - 99.6%
Freeport-McMoRan Copper & Gold, Inc. — Class B		114,419	$	13,740,578
Barrick Gold Corp.		159,274		8,470,191
Newmont Mining Co.		132,708		8,152,252
Silver Wheaton Corp.*		182,265		7,115,626
Goldcorp, Inc.		148,109		6,810,052
Agnico-Eagle Mines Ltd.		66,383		5,091,576
Kinross Gold Corp.		242,824		4,603,943
Yamana Gold, Inc.		335,371		4,292,749
Hecla Mining Co.*		371,802		4,186,490
Eldorado Gold Corp.		206,823		3,840,703
AngloGold Ashanti Ltd. ADR		77,613		3,820,888
Southern Copper Co.		77,994		3,801,428
Gold Fields Ltd. ADR		179,238		3,249,585
Randgold Resources Ltd. ADR		38,847		3,198,273
Novagold Resources, Inc.*		220,485		3,146,321
Stillwater Mining Co.*		142,349		3,039,151
Pan American Silver Corp.		71,764		2,957,394
Coeur d’Alene Mines Corp.*		106,690		2,914,771
Cia de Minas Buenaventura S.A. ADR		55,903		2,737,011
Titanium Metals Corp.*		152,320		2,616,858
IAMGOLD Corp.		142,532		2,537,070
Silver Standard Resources, Inc.*		81,944		2,312,460
Silvercorp Metals, Inc.		156,609		2,009,293
Royal Gold, Inc.		34,693		1,895,279
Harmony Gold Mining Company Ltd. ADR		123,746		1,551,775
Allied Nevada Gold Corp.*		50,184		1,320,341
Gammon Gold, Inc.*		142,533		1,167,345
Rare Element Resources Ltd.*		60,900		978,054
US Gold Corp.*		118,320		954,842
Fronteer Gold, Inc.*		79,100		927,843
New Gold, Inc.*		94,850		925,736
Seabridge Gold, Inc.*		26,670		818,236
Jaguar Mining, Inc.*		113,018		805,818
Golden Star Resources Ltd.*		118,060		541,895
North American Palladium Ltd.*		68,300		474,002
Total Materials				117,005,829
Total Common Stocks (Cost $54,725,120)				117,005,829

	Face
	Amount		Value
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	608,576	$	608,576
Total Repurchase Agreement (Cost $608,576)				608,576
Total Investments — 100.1% (Cost $55,333,696)			$	117,614,405
Liabilities, Less Cash & Other Assets — (0.1)%				(115,628	)
Total Net Assets — 100.0%			$	117,498,777

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

ADR — American Depositary Receipt

66 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	117,005,829
Repurchase agreements, at value		608,576
Total investments		117,614,405
Receivables:
Fund shares sold		2,177,307
Dividends		25,912
Interest		10
Total assets		119,817,634
Liabilities:
Payable for:
Securities purchased		1,546,141
Fund shares redeemed		563,747
Management fees		72,345
Custodian fees		3,232
Transfer agent/maintenance fees		24,115
Investor service fees		24,115
Portfolio accounting fees		9,646
Other		75,516
Total liabilities		2,318,857
Net assets	$	117,498,777
Net assets consist of:
Paid in capital	$	70,811,482
Accumulated net investment loss		(430,852	)
Accumulated net realized loss on investments		(15,162,562	)
Net unrealized appreciation on investments		62,280,709
Net assets	$	117,498,777
Capital shares outstanding		6,171,630
Net asset value per share	$	19.04
Investments, at cost	$	54,725,120
Repurchase agreements, at cost		608,576
Total cost	$	55,333,696

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $24,566)	$	746,920
Interest		833
Total investment income		747,753
Expenses:
Management fees		624,743
Transfer agent and administrative fees		208,248
Investor service fees		208,248
Portfolio accounting fees		83,298
Trustees’ fees*		9,572
Audit & outside service fees		94,358
Printing fees		76,059
Miscellaneous		(3,935	)
Total expenses		1,300,591
Net investment loss		(552,838	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,270,819
Foreign currency		100
Net realized gain		5,270,919
Net change in unrealized appreciation (depreciation) on:
Investments		22,955,313
Foreign currency		8
Net change in unrealized appreciation (depreciation)		22,955,321
Net realized and unrealized gain		28,226,240
Net increase in net assets resulting from operations	$	27,673,402

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 67

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(552,838	)	$	(825,584	)
Net realized gain on investments		5,270,919			4,436,285
Net change in unrealized appreciation on investments		22,955,321			18,143,545
Net increase in net assets resulting from operations		27,673,402			21,754,246
Distributions to Shareholders from:
Net investment income		(4,015	)		—
Total distributions to shareholders		(4,015	)		—
Capital share transactions:
Proceeds from sale of shares		240,075,819			207,682,362
Distributions reinvested		4,015			—
Cost of shares redeemed		(236,527,238	)		(204,185,090	)
Net increase from capital share transactions		3,552,596			3,497,272
Net increase in net assets		31,221,983			25,251,518
Net assets:
Beginning of year		86,276,794			61,025,276
End of year	$	117,498,777		$	86,276,794
Accumulated/(Undistributed) net investment income/(loss) at end of year	$	(430,852	)	$	4,015
Capital share activity:
Shares sold		15,772,167			17,955,101
Shares issued from reinvestment of distributions		228			—
Shares redeemed		(15,859,244	)		(18,302,594	)
Net decrease in shares		(86,849	)		(347,493	)

68 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	13.79		$	9.24		$	15.04		$	12.58		$	10.36
Income (loss) from investment operations:
Net investment lossa		(.10	)		(.13	)		(.09	)		(.10	)		(.03	)
Net gain (loss) on investments (realized and unrealized)		5.35			4.68			(5.71	)		2.56			2.25
Total from investment operations		5.25			4.55			(5.80	)		2.46			2.22
Less distributions from:
Net investment income		—	c		—			—			—			—
Net asset value, end of period	$	19.04		$	13.79		$	9.24		$	15.04		$	12.58
Total Returnb		38.08	%		49.24	%		(38.56	%)		19.55	%		21.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	117,499		$	86,277		$	61,025		$	91,613		$	62,910
Ratios to average net assets:
Net investment loss		(0.66	%)		(1.14	%)		(0.66	%)		(0.71	%)		(0.26	%)
Total expenses		1.56	%		1.55	%		1.50	%		1.45	%		1.49	%
Portfolio turnover rate		234	%		253	%		228	%		268	%		228	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Less than $0.01 per share.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 69

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

RETAILING FUND

OBJECTIVE: Seeks capital appreciation by investing in companies engaged in merchandising finished goods and services, including department stores, restaurant franchises, mail-order operations and other companies involved in selling products to consumers (“Retailing Companies”).

Inception: July 23, 2001

Late-year reports indicating strong holiday sales boosted the shares of many retailers, but the sector is also facing the impact of recent spikes in commodity prices and a beleaguered consumer market dealing with continued high unemployment and low levels of confidence. Higher-growth industries, including Internet & Catalog Retail, posted the strongest gains for the year, while lower-growth, lower-risk industries, including Distributors and Food & Staples Retailing, made low contributions to return.

For the one-year period ended December 31, 2010, Retailing Fund returned 25.14%, compared with a gain of 15.06% for the S&P 500^® Index. Within the sector, heavily weighted Specialty Retail contributed about half of the Fund performance. Internet Catalog & Retail and Multiline Retail contributed most of the remainder of the Fund’s total return.

Fund performance for the year benefited most from Priceline.com, Inc., Netflix, Inc. and Amazon.com, Inc. Best Buy Co., Inc., Nutrisystems, Inc. and Sears Holdings Corp. were among the Fund’s weakest performing stocks for the period.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
July 23, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/23/01)
RETAILING FUND		25.14	%		3.09	%		4.13	%
S&P 500 INDEX		15.06	%		2.29	%		2.54	%
S&P 500 CONSUMER DISCRETIONARY INDEX		27.84	%		4.35	%		2.98	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Consumer Discretionary Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Wal-Mart Stores, Inc.	7.0	%
Amazon.com, Inc.	4.4	%
Home Depot, Inc.	3.8	%
CVS Caremark Corp.	3.5	%
Target Corp.	3.3	%
Walgreen Co.	3.1	%
Lowe’s Companies, Inc.	2.9	%
Costco Wholesale Corp.	2.8	%
Priceline.com, Inc.	2.2	%
TJX Companies, Inc.	2.1	%
Top Ten Total	35.1	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

70 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

RETAILING FUND

	Shares		Value
COMMON STOCKS† - 99.6%
CONSUMER DISCRETIONARY - 82.4%
Amazon.com, Inc.*		2,328	$	419,040
Home Depot, Inc.		10,284		360,557
Target Corp.		5,245		315,382
Lowe’s Companies, Inc.		11,024		276,482
Priceline.com, Inc.*		518		206,967
TJX Companies, Inc.		4,513		200,332
Staples, Inc.		8,546		194,592
Kohl’s Corp.*		3,488		189,538
The Gap, Inc.		8,161		180,685
Best Buy Company, Inc.		5,169		177,245
Bed Bath & Beyond, Inc.*		3,496		171,828
AutoZone, Inc.*		606		165,190
Macy’s, Inc.		6,153		155,671
Dollar General Corp.*		4,996		153,227
Limited Brands, Inc.		4,844		148,856
Liberty Media Corporation - Interactive*		9,255		145,951
Nordstrom, Inc.		3,402		144,177
NetFlix, Inc.*		815		143,196
Sears Holdings Corp.*		1,902		140,273
O’Reilly Automotive, Inc.*		2,255		136,247
Genuine Parts Co.		2,644		135,743
Ross Stores, Inc.		2,072		131,054
Tiffany & Co.		2,089		130,082
JC Penney Company, Inc.		3,997		129,143
Dollar Tree, Inc.*		2,244		125,844
Expedia, Inc.		4,823		121,009
Family Dollar Stores, Inc.		2,401		119,354
CarMax, Inc.*		3,743		119,327
Urban Outfitters, Inc.*		3,181		113,912
Advance Auto Parts, Inc.		1,674		110,735
Abercrombie & Fitch Co. — Class A		1,862		107,307
PetSmart, Inc.		2,577		102,616
Dick’s Sporting Goods, Inc.*		2,671		100,163
AutoNation, Inc.*		3,502		98,756
Guess?, Inc.		2,080		98,426
GameStop Corp. — Class A*		4,066		93,030
Williams-Sonoma, Inc.		2,583		92,187
Signet Jewelers Ltd.*		2,099		91,097
Tractor Supply Co.		1,851		89,755
Foot Locker, Inc.		4,224		82,875
American Eagle Outfitters, Inc.		5,434		79,499
Sally Beauty Holdings, Inc.*		5,450		79,188
J Crew Group, Inc.*		1,829		78,903
Big Lots, Inc.*		2,418		73,652
Dillard’s, Inc. — Class A		1,936		73,452
Rent-A-Center, Inc. — Class A		2,181		70,403
Aeropostale, Inc.*		2,848		70,175
Chico’s FAS, Inc.		5,791		69,666
Jo-Ann Stores, Inc.*		1,152		69,373
Ulta Salon Cosmetics & Fragrance, Inc.*		2,039		69,326
RadioShack Corp.		3,749		69,319
Ascena Retail Group, Inc.*		2,620		69,220
HSN, Inc.*		2,082		63,792
Buckle, Inc.		1,676		63,303
Saks, Inc.*		5,699		60,979
AnnTaylor Stores Corp.*		2,149		58,861
OfficeMax, Inc.*		3,312		58,622
Men’s Wearhouse, Inc.		2,209		55,181
Collective Brands, Inc.*		2,600		54,860
Childrens Place Retail Stores, Inc.*		1,080		53,611
Pier 1 Imports, Inc.*		5,000		52,500
LKQ Corp.*		2,243		50,961
Jos A. Bank Clothiers, Inc.*		1,241		50,037
99 Cents Only Stores*		3,130		49,892
Group 1 Automotive, Inc.		1,140		47,606
Total Consumer Discretionary				7,810,232
CONSUMER STAPLES - 17.2%
Wal-Mart Stores, Inc.		12,273		661,883
CVS Caremark Corp.		9,465		329,098
Walgreen Co.		7,565		294,733
Costco Wholesale Corp.		3,705		267,538
BJ’s Wholesale Club, Inc.*		1,668		79,897
Total Consumer Staples				1,633,149
Total Common Stocks (Cost $6,257,573)				9,443,381

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	53,776		53,776
Total Repurchase Agreement (Cost $53,776)				53,776
Total Investments - 100.2% (Cost $6,311,349)			$	9,497,157
Liabilities, Less Cash & Other Assets - (0.2)%				(20,234	)
Total Net Assets - 100.0%			$	9,476,923

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 71

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	9,443,381
Repurchase agreements, at value		53,776
Total investments		9,497,157
Receivables:
Fund shares sold		668,447
Dividends		7,922
Total assets		10,173,526
Liabilities:
Payable for:
Securities purchased		613,863
Fund shares redeemed		59,372
Management fees		7,225
Custodian fees		288
Transfer agent/maintenance fees		2,125
Investor service fees		2,125
Portfolio accounting fees		850
Other		10,755
Total liabilities		696,603
Net assets	$	9,476,923
Net assets consist of:
Paid in capital	$	8,495,341
Accumulated net investment loss		—
Accumulated net realized loss on investments		(2,204,226	)
Net unrealized appreciation on investments		3,185,808
Net assets	$	9,476,923
Capital shares outstanding		697,350
Net asset value per share	$	13.59
Investments, at cost	$	6,257,573
Repurchase agreements, at cost		53,776
Total cost	$	6,311,349

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends	$	169,431
Interest		106
Total investment income		169,537
Expenses:
Management fees		102,838
Transfer agent and administrative fees		30,246
Investor service fees		30,246
Portfolio accounting fees		12,098
Trustees’ fees*		1,602
Miscellaneous		22,048
Total expenses		199,078
Net investment loss		(29,541	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,072,295
Net realized gain		2,072,295
Net change in unrealized appreciation (depreciation) on:
Investments		(1,447,985	)
Net change in unrealized appreciation (depreciation)		(1,447,985	)
Net realized and unrealized gain		624,310
Net increase in net assets resulting from operations	$	594,769

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

72 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(29,541	)	$	(26,215	)
Net realized gain on investments		2,072,295			446,066
Net change in unrealized appreciation (depreciation) on investments		(1,447,985	)		3,701,876
Net increase in net assets resulting from operations		594,769			4,121,727
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		82,623,625			61,285,575
Cost of shares redeemed		(89,229,867	)		(63,539,988	)
Net decrease from capital share transactions		(6,606,242	)		(2,254,413	)
Net increase (decrease) in net assets		(6,011,473	)		1,867,314
Net assets:
Beginning of year		15,488,396			13,621,082
End of year	$	9,476,923		$	15,488,396
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		6,993,103			6,538,502
Shares redeemed		(7,722,176	)		(6,922,165	)
Net decrease in shares		(729,073	)		(383,663	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 73

RETAILING FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	10.86		$	7.53		$	11.27		$	29.78		$	27.85
Income (loss) from investment operations:
Net investment lossa		(.03	)		(.02	)		(.02	)		(.24	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		2.76			3.35			(3.70	)		(2.95	)		2.92
Total from investment operations		2.73			3.33			(3.72	)		(3.19	)		2.81
Less distributions from:
Net realized gains		—			—			(.02	)		(15.32	)		(.88	)
Total distributions		—			—			(.02	)		(15.32	)		(.88	)
Net asset value, end of period	$	13.59		$	10.86		$	7.53		$	11.27		$	29.78
Total Returnb		25.14	%		44.22	%		(32.95	%)		(12.60	%)		10.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,477		$	15,488		$	13,621		$	4,651		$	28,306
Ratios to average net assets:
Net investment loss		(0.24	%)		(0.19	%)		(0.17	%)		(0.81	%)		(0.37	%)
Total expenses		1.65	%		1.65	%		1.62	%		1.60	%		1.59	%
Portfolio turnover rate		616	%		470	%		460	%		182	%		227	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

74 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

TECHNOLOGY FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the technology sector, including computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment manufacturers, PC hardware and peripherals companies (“Technology Companies”).

Inception: May 2, 2001

The technology sector underperformed despite solidifying economic growth, providing returns somewhat lower than the market in 2010. Companies in the sector often carry large cash balances and relatively low debt, and may be poised to increase dividends or consider mergers and acquisitions. The sector is benefiting from the secular change away from desktop PCs and into smartphones and tablets.

For the one-year period ended December 31, 2010, Technology Fund returned 12.03%, compared with a gain of 15.06% for the S&P 500^® Index. Within the sector, Software provided about a third of the Fund return, while Computers & Peripherals, Internet Software & Services, and Communications Equipment provided another third of Fund return. Consumer Finance and Diversified Financial Services industries both had negative returns for the period and detracted from overall Fund performance.

Fund performance for the year got the biggest boost from Apple, Inc., Baidu, Inc. ADS and VMware, Inc. Hewlett-Packard Co., Cisco Systems, Inc. and Microsoft Corp. were among the weakest-performing stocks for the period.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 2, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
TECHNOLOGY FUND		12.03	%		2.15	%		-1.69	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 INFORMATION TECHNOLOGY INDEX		10.22	%		5.02	%		-0.11	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Information Technology Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Apple, Inc.	4.2	%
Microsoft Corp.	3.8	%
Google, Inc. — Class A	3.5	%
International Business Machines Corp.	3.3	%
Oracle Corp.	3.0	%
Intel Corp.	2.6	%
Cisco Systems, Inc.	2.6	%
Hewlett-Packard Co.	2.3	%
QUALCOMM, Inc.	2.2	%
Visa, Inc. — Class A	1.8	%
Top Ten Total	29.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 75

SCHEDULE OF INVESTMENTS December 31, 2010

TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.6%
INFORMATION TECHNOLOGY - 98.7%
Apple, Inc.*		2,764	$	891,556
Microsoft Corp.		28,874		806,162
Google, Inc. — Class A*		1,278		759,094
International Business Machines Corp.		4,824		707,970
Oracle Corp.		20,638		645,969
Intel Corp.		26,773		563,036
Cisco Systems, Inc.*		27,693		560,229
Hewlett-Packard Co.		11,936		502,506
QUALCOMM, Inc.		9,423		466,344
Visa, Inc. — Class A		5,370		377,941
EMC Corp.*		15,637		358,087
Infosys Technologies Ltd. ADR		4,580		348,446
Texas Instruments, Inc.		9,907		321,978
VMware, Inc. — Class A*		3,529		313,763
Accenture plc — Class A		6,407		310,675
eBay, Inc.*		10,920		303,904
Mastercard, Inc. — Class A		1,340		300,307
Baidu, Inc. ADR*		3,070		296,347
Corning, Inc.		14,978		289,375
Research In Motion Ltd.*		4,902		284,953
Dell, Inc.*		19,893		269,550
Broadcom Corp. — Class A		5,670		246,929
Automatic Data Processing, Inc.		5,335		246,904
Cognizant Technology Solutions Corp. — Class A*		3,362		246,401
Yahoo!, Inc.*		14,741		245,143
Motorola Solutions, Inc.*		26,634		241,570
NetApp, Inc.*		4,174		229,403
Applied Materials, Inc.		16,320		229,296
Juniper Networks, Inc.*		6,179		228,129
Salesforce.com, Inc.*		1,720		227,040
Adobe Systems, Inc.*		6,866		211,335
Xerox Corp.		17,965		206,957
Activision Blizzard, Inc.		16,350		203,394
Intuit, Inc.*		4,102		202,229
Symantec Corp.*		11,235		188,074
Citrix Systems, Inc.*		2,702		184,844
Western Union Co.		9,790		181,800
CA, Inc.		7,433		181,663
SanDisk Corp.*		3,576		178,299
Nokia Oyj ADR		17,118		176,658
Marvell Technology Group Ltd.*		9,522		176,633
F5 Networks, Inc.*		1,350		175,716
Paychex, Inc.		5,651		174,672
Analog Devices, Inc.		4,623		174,148
Altera Corp.		4,845		172,385
Taiwan Semiconductor Manufacturing Company Ltd. ADR		13,164		165,077
Check Point Software Technologies Ltd.*		3,487		161,309
NVIDIA Corp.*		10,415		160,391
Amphenol Corp. — Class A		2,988		157,707
Autodesk, Inc.*		4,007		153,067
Fiserv, Inc.*		2,609		152,783
SAP AG ADR		3,007		152,184
Fidelity National Information Services, Inc.		5,491		150,398
Sina Corp.*		2,180		150,028
Red Hat, Inc.*		3,274		149,458
Micron Technology, Inc.*		18,601		149,180
BMC Software, Inc.*		3,156		148,774
Akamai Technologies, Inc.*		3,140		147,737
Tyco Electronics Ltd.		4,170		147,618
Computer Sciences Corp.		2,954		146,518
Western Digital Corp.*		4,297		145,668
ASML Holding N.V. — Class G		3,797		145,577
Xilinx, Inc.		4,994		144,726
Linear Technology Corp.		4,180		144,586
Sohu.com, Inc.*		2,240		142,218
Seagate Technology plc*		9,350		140,530
Telefonaktiebolaget LM Ericsson ADR		12,118		139,721
McAfee, Inc.*		3,007		139,254
Rovi Corp.*		2,228		138,158
Avago Technologies Ltd.		4,850		138,079
Cree, Inc.*		2,085		137,381
MercadoLibre, Inc.*		2,060		137,299
Maxim Integrated Products, Inc.		5,810		137,232
Teradata Corp.*		3,240		133,358
Microchip Technology, Inc.		3,868		132,324
Lam Research Corp.*		2,520		130,486
KLA-Tencor Corp.		3,375		130,410
Flextronics International Ltd.*		16,469		129,282
SAIC, Inc.*		8,139		129,085
Trina Sola Ltd. ADR*		5,456		127,780
Atmel Corp.*		10,286		126,724
Amdocs Ltd.*		4,611		126,664
Harris Corp.		2,732		123,760
Advanced Micro Devices, Inc.*		15,095		123,477
Electronic Arts, Inc.*		7,527		123,292
Nuance Communications, Inc.*		6,661		121,097
VeriSign, Inc.		3,689		120,520
Skyworks Solutions, Inc.*		4,190		119,960
Riverbed Technology, Inc.*		3,330		117,116
Avnet, Inc.*		3,526		116,464
Trimble Navigation Ltd.*		2,877		114,879
FLIR Systems, Inc.*		3,830		113,943
Equinix, Inc.*		1,304		105,963
Total Information Technology				21,197,056
INDUSTRIALS - 0.9%
First Solar, Inc.*		1,410		183,497
Total Common Stocks (Cost $13,930,681)				21,380,553

76 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

TECHNOLOGY FUND

	Face
	Amount		Value
REPURCHASE AGREEMENT††,1 - 0.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	129,104	$	129,104
Total Repurchase Agreement (Cost $129,104)				129,104
Total Investments - 100.2% (Cost $14,059,785)			$	21,509,657
Liabilities, Less Cash & Other Assets - (0.2)%				(41,838	)
Total Net Assets - 100.0%			$	21,467,819

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

ADR — American Depositary Receipt

plc — Public Limited Company

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 77

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	21,380,553
Repurchase agreements, at value		129,104
Total investments		21,509,657
Receivables:
Securities sold		1,079,885
Fund shares sold		58,142
Foreign taxes reclaim		975
Dividends		3,576
Total assets		22,652,235
Liabilities:
Payable for:
Fund shares redeemed		1,140,611
Management fees		16,298
Custodian fees		633
Transfer agent/maintenance fees		4,793
Investor service fees		4,793
Portfolio accounting fees		1,917
Other		15,371
Total liabilities		1,184,416
Net assets	$	21,467,819
Net assets consist of:
Paid in capital	$	18,278,927
Accumulated net investment loss		—
Accumulated net realized loss on investments		(4,260,980	)
Net unrealized appreciation on investments		7,449,872
Net assets	$	21,467,819
Capital shares outstanding		1,746,170
Net asset value per share	$	12.29
Investments, at cost	$	13,930,681
Repurchase agreements, at cost		129,104
Total cost	$	14,059,785

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $845)	$	216,181
Interest		182
Total investment income		216,363
Expenses:
Management fees		202,492
Transfer agent and administrative fees		59,556
Investor service fees		59,556
Portfolio accounting fees		23,822
Trustees’ fees*		3,101
Miscellaneous		43,451
Total expenses		391,978
Net investment loss		(175,615	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		3,361,174
Net realized gain		3,361,174
Net change in unrealized appreciation (depreciation) on:
Investments		(2,800,102	)
Net change in unrealized appreciation (depreciation)		(2,800,102	)
Net realized and unrealized gain		561,072
Net increase in net assets resulting from operations	$	385,457

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

78 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(175,615	)	$	(160,972	)
Net realized gain on investments		3,361,174			797,898
Net change in unrealized appreciation (depreciation) on investments		(2,800,102	)		10,412,771
Net increase in net assets resulting from operations		385,457			11,049,697
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		95,797,480			84,866,100
Cost of shares redeemed		(114,681,744	)		(63,187,497	)
Net increase (decrease) from capital share transactions		(18,884,264	)		21,678,603
Net increase (decrease) in net assets		(18,498,807	)		32,728,300
Net assets:
Beginning of year		39,966,626			7,238,326
End of year	$	21,467,819		$	39,966,626
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		8,653,254			9,525,746
Shares redeemed		(10,550,362	)		(6,909,178	)
Net increase (decrease) in shares		(1,897,108	)		2,616,568

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 79

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	10.97		$	7.05		$	16.27		$	14.74		$	13.92
Income (loss) from investment operations:
Net investment lossa		(.08	)		(.06	)		(.08	)		(.15	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		1.40			3.98			(7.39	)		1.68			.98
Total from investment operations		1.32			3.92			(7.47	)		1.53			.82
Less distributions from:
Net realized gains		—			—			(1.75	)		—			—
Total distributions		—			—			(1.75	)		—			—
Net asset value, end of period	$	12.29		$	10.97		$	7.05		$	16.27		$	14.74
Total Returnb		12.03	%		55.60	%		(45.41	%)		10.38	%		5.89	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,468		$	39,967		$	7,238		$	33,123		$	23,215
Ratios to average net assets:
Net investment loss		(0.74	%)		(0.68	%)		(0.63	%)		(0.91	%)		(1.09	%)
Total expenses		1.65	%		1.65	%		1.60	%		1.56	%		1.59	%
Portfolio turnover rate		357	%		252	%		277	%		584	%		403	%

a	Net investment loss per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

80 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

TELECOMMUNICATIONS FUND

OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the development, manufacture or sale of communications services or communications equipment (“Telecommunications Companies”).

Inception: July 27, 2001

Telecommunication firms posted returns in line with the broad equity market in 2010, benefiting from investors’ seeking higher-yielding areas of the market. Even though consumers’ demand for wireless devices appears to be increasing, it means the sector is facing a continued secular decline in wireline revenue and greater competition among wireless carriers, with five or more networks in all major markets. The sector has the highest debt-to-equity ratio of a non-financial sector, which could be a drag on profits if credit remains tight.

For the one-year period ended December 31, 2010, Telecommunications Fund returned 14.51%, compared with a gain of 15.06% for the S&P 500^® Index. All three industries within the sector contributed strongly to the Fund’s return, led by the Communications Equipment segment, which composed about half of the portfolio weight. Wireless Telecommunications Services stocks and Diversified Telecommunication Services combined to provide the rest of the portfolio’s return.

Vodafone Group PLC ADS, Acme Packet, Inc. and Juniper Networks, Inc. were among the strongest performers for the year. Cisco Systems, Inc., Brocade Communications Systems, Inc. and Palm, Inc. were among the stocks which added least to Fund performance during the year.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
July 27, 2001 — December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/27/01)
TELECOMMUNICATIONS FUND		14.51	%		1.01	%		-1.42	%
S&P 500 INDEX		15.06	%		2.29	%		2.40	%
S&P 500 TELECOMMUNICATION SERVICES INDEX		18.96	%		6.62	%		-0.70	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Telecommunication Services Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

AT&T, Inc.	7.9	%
Cisco Systems, Inc.	6.5	%
Verizon Communications, Inc.	6.1	%
Vodafone Group plc ADR	5.6	%
QUALCOMM, Inc.	5.4	%
Research In Motion Ltd.	3.3	%
Motorola Solutions, Inc.	2.8	%
American Tower Corp. — Class A	2.7	%
Juniper Networks, Inc.	2.6	%
CenturyLink, Inc.	2.2	%
Top Ten Total	45.1	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 81

SCHEDULE OF INVESTMENTS December 31, 2010

TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 99.5%
TELECOMMUNICATION SERVICES - 54.1%
AT&T, Inc.		21,847	$	641,865
Verizon Communications, Inc.		13,861		495,946
Vodafone Group plc ADR		17,205		454,728
American Tower Corp. — Class A*		4,265		220,245
CenturyLink, Inc.		3,928		181,356
Qwest Communications International, Inc.		23,020		175,182
Crown Castle International Corp.*		3,987		174,750
Millicom International Cellular S.A.		1,660		158,696
Frontier Communications Corp.		15,759		153,335
America Movil SAB de CV ADR		2,512		144,038
NII Holdings, Inc.*		2,995		133,757
Windstream Corp.		8,986		125,265
China Mobile Ltd. ADR		2,200		109,164
SBA Communications Corp. — Class A*		2,615		107,058
MetroPCS Communications, Inc.*		8,075		101,987
Mobile Telesystems OJSC ADR		4,641		96,858
Telefonica S.A. ADR		1,120		76,630
Vivo Participacoes S.A. ADR		2,340		76,261
Tele Norte Leste Participacoes S.A. ADR		5,180		76,146
VimpelCom Ltd. ADR		4,990		75,050
BCE, Inc.		2,028		71,913
Syniverse Holdings, Inc.*		2,322		71,634
Chunghwa Telecom Company Ltd. ADR		2,760		69,745
China Unicom Hong Kong Ltd. ADR		4,867		69,355
Clearwire Corp. — Class A*		10,919		56,233
Telephone & Data Systems, Inc.		1,490		54,459
tw telecom, Inc. — Class A*		2,936		50,059
SK Telecom Company Ltd. ADR		2,645		49,276
Leap Wireless International, Inc.*		3,935		48,243
KT Corporation ADR		2,250		46,800
Total Telecommunication Services				4,366,034
INFORMATION TECHNOLOGY - 45.4%
Cisco Systems, Inc.*		25,812		522,177
QUALCOMM, Inc.		8,810		436,007
Research In Motion Ltd.*		4,584		266,468
Motorola Solutions, Inc.*		24,817		225,090
Juniper Networks, Inc.*		5,776		213,250
F5 Networks, Inc.*		1,180		153,589
Nokia Oyj ADR		13,162		135,832
Harris Corp.		2,552		115,606
Riverbed Technology, Inc.*		3,120		109,730
Polycom, Inc.*		2,264		88,251
JDS Uniphase Corp.*		6,088		88,154
Acme Packet, Inc.*		1,642		87,289
CommScope, Inc.*		2,686		83,857
Tellabs, Inc.		11,326		76,790
Telefonaktiebolaget LM Ericsson ADR		6,564		75,683
Brocade Communications Systems, Inc.*		14,296		75,626
ADTRAN, Inc.		2,050		74,231
Finisar Corp.*		2,452		72,800
Ciena Corp.*		3,190		67,149
Aruba Networks, Inc.*		3,214		67,108
InterDigital, Inc.		1,550		64,542
RADWARE Ltd.*		1,580		59,266
Plantronics, Inc.		1,490		55,458
Blue Coat Systems, Inc.*		1,840		54,961
Netgear, Inc.*		1,560		52,541
Infinera Corp.*		4,692		48,468
Emulex Corp.*		3,817		44,506
DG FastChannel, Inc.*		1,540		44,475
Arris Group, Inc.*		3,862		43,332
Comtech Telecommunications Corp.		1,510		41,872
Viasat, Inc.*		940		41,745
Oclaro, Inc.*		3,090		40,633
Tekelec*		3,250		38,707
Total Information Technology				3,665,193
Total Common Stocks (Cost $6,192,889)				8,031,227

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.8%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	67,027		67,027
Total Repurchase Agreement (Cost $67,027)				67,027
Total Investments - 100.3% (Cost $6,259,916)			$	8,098,254
Liabilities, Less Cash & Other Assets - (0.3)%				(21,456	)
Total Net Assets - 100.0%			$	8,076,798

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

ADR — American Depository Receipt

plc — Public Limited Company

82 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	8,031,227
Repurchase agreements, at value		67,027
Total investments		8,098,254
Receivables:
Securities sold		42,292
Fund shares sold		1,036,686
Foreign taxes reclaim		357
Dividends		10,549
Total assets		9,188,138
Liabilities:
Payable for:
Securities purchased		1,090,874
Fund shares redeemed		3,405
Management fees		5,540
Custodian fees		226
Transfer agent/maintenance fees		1,629
Investor service fees		1,629
Portfolio accounting fees		652
Other		7,385
Total liabilities		1,111,340
Net assets	$	8,076,798
Net assets consist of:
Paid in capital	$	9,278,819
Undistributed net investment income		44,330
Accumulated net realized loss on investments		(3,084,689	)
Net unrealized appreciation on investments		1,838,338
Net assets	$	8,076,798
Capital shares outstanding		731,411
Net asset value per share	$	11.04
Investments, at cost	$	6,192,889
Repurchase agreements, at cost		67,027
Total cost	$	6,259,916

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment income:
Dividends (net of foreign withholding tax of $2,117)	$	157,171
Interest		55
Total investment income		157,226
Expenses:
Management fees		57,519
Transfer agent and administrative fees		16,917
Investor service fees		16,917
Portfolio accounting fees		6,767
Trustees’ fees*		754
Audit & outside service fees		7,433
Printing fees		6,678
Miscellaneous		(90	)
Total expenses		112,895
Net investment income		44,331
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		438,730
Net realized gain		438,730
Net change in unrealized appreciation (depreciation) on:
Investments		534,651
Net change in unrealized appreciation (depreciation)		534,651
Net realized and unrealized gain		973,381
Net increase in net assets resulting from operations	$	1,017,712

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 83

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	44,331		$	124,807
Net realized gain on investments		438,730			906,657
Net change in unrealized appreciation (depreciation) on investments		534,651			433,135
Net increase in net assets resulting from operations		1,017,712			1,464,599
Distributions to shareholders from:
Net investment income		(124,808	)		(180,137	)
Total distributions to shareholders		(124,808	)		(180,137	)
Capital share transactions:
Proceeds from sale of shares		90,677,324			44,074,912
Distributions reinvested		124,808			180,137
Cost of shares redeemed		(89,366,201	)		(48,545,640	)
Net increase (decrease) from capital share transactions		1,435,931			(4,290,591	)
Net increase (decrease) in net assets		2,328,835			(3,006,129	)
Net assets:
Beginning of year		5,747,963			8,754,092
End of year	$	8,076,798		$	5,747,963
Undistributed net investment income at end of year	$	44,330		$	124,807
Capital share activity:
Shares sold		9,055,491			4,847,866
Shares issued from reinvestment of distributions		11,853			19,002
Shares redeemed		(8,922,688	)		(5,382,779	)
Net increase (decrease) in shares		144,656			(515,911	)

84 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	9.80		$	7.94		$	23.89		$	21.91		$	18.81
Income (loss) from investment operations:
Net investment incomea		.06			.18			.24			.05			.15
Net gain (loss) on investments (realized and unrealized)		1.35			2.08			(11.49	)		1.97			3.52
Total from investment operations		1.41			2.26			(11.25	)		2.02			3.67
Less distributions from:
Net investment income		(.17	)		(.40	)		(.05	)		(.04	)		(.29	)
Net realized gains		—			—			(4.65	)		—			(.28	)
Total distributions		(.17	)		(.40	)		(4.70	)		(.04	)		(.57	)
Net asset value, end of period	$	11.04		$	9.80		$	7.94		$	23.89		$	21.91
Total Returnb		14.51	%		28.68	%		(45.34	%)		9.23	%		19.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,077		$	5,748		$	8,754		$	31,781		$	33,337
Ratios to average net assets:
Net investment income		0.66	%		2.03	%		1.34	%		0.20	%		0.72	%
Total expenses		1.67	%		1.66	%		1.61	%		1.58	%		1.59	%
Portfolio turnover rate		1,276	%		694	%		341	%		295	%		264	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 85

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

TRANSPORTATION FUND

OBJECTIVE: Seeks capital appreciation by investing in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution or sale of transportation equipment (“Transportation Companies”).

Inception: June 11, 2001

Transportation firms outpaced the broader equity market in the 2010, particularly in the Road & Rail segment, the largest in the Fund. The other two large components of the Fund, Airlines and Air Freight & Logistics, also performed well. The two smallest segments, Marine and Transportation Infrastructure, had poor performance for the year and produced a drag on Fund performance.

For the one-year period ended December 31, 2010, Transportation Fund returned 24.13%, compared with a gain of 15.06% for the S&P 500^® Index. Within the sector, lightly weighted segments, Marine and Transportation Infrastructure, had negative performance and detracted from portfolio return. The Road & Rail segment, which accounted for 46% of the portfolio weight, contributed about half the return for the year, followed by the Air Freight & Logistics segment, which contributed another third to return.

Union Pacific Corp., United Parcel Service, Inc. (Class B) and United Continental Holdings, Inc. were among the biggest contributors to Fund performance for the year. DryShips, Inc., Genco Shipping & Trading Ltd. and Aegean Marine Petroleum Network, Inc. were among the stocks which provided the least performance to the Fund during the year. Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
June 11, 2001 – December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(06/11/01)
TRANSPORTATION FUND		24.13	%		1.31	%		4.18	%
S&P 500 INDEX		15.06	%		2.29	%		1.96	%
S&P 500 INDUSTRIALS INDEX		26.74	%		3.17	%		2.61	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Industrials Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

United Parcel Service, Inc. — Class B	9.7	%
Union Pacific Corp.	7.8	%
FedEx Corp.	6.2	%
CSX Corp.	5.7	%
Norfolk Southern Corp.	5.5	%
CH Robinson Worldwide, Inc.	4.2	%
Expeditors International of Washington, Inc.	3.9	%
Delta Air Lines, Inc.	3.6	%
Southwest Airlines Co.	3.6	%
United Continental Holdings, Inc.	3.1	%
Top Ten Total	53.3	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

86 | the RYDEX|SGI variable trust annual report

SCHEDULE OF INVESTMENTS December 31, 2010

TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.5%
INDUSTRIALS - 99.5%
United Parcel Service, Inc. — Class B		17,487	$	1,269,207
Union Pacific Corp.		11,053		1,024,171
FedEx Corp.		8,711		810,210
CSX Corp.		11,582		748,313
Norfolk Southern Corp.		11,488		721,676
CH Robinson Worldwide, Inc.		6,873		551,146
Expeditors International of Washington, Inc.		9,258		505,487
Delta Air Lines, Inc.*		37,584		473,558
Southwest Airlines Co.		35,952		466,657
United Continental Holdings, Inc.*		17,135		408,156
Hertz Global Holdings, Inc.*		25,321		366,901
J.B. Hunt Transport Services, Inc.		8,405		343,008
Kansas City Southern*		6,960		333,106
Canadian National Railway Co.		4,641		308,487
DryShips, Inc.*		46,180		253,990
Ryder System, Inc.		4,773		251,251
AMR Corp.*		30,542		237,922
Landstar System, Inc.		5,305		217,187
Con-way, Inc.		5,927		216,750
Alaska Air Group, Inc.*		3,796		215,195
JetBlue Airways Corp.*		31,701		209,544
Canadian Pacific Railway Ltd.		3,039		196,958
Avis Budget Group, Inc.*		12,455		193,800
Werner Enterprises, Inc.		8,488		191,829
US Airways Group, Inc.*		18,997		190,160
Knight Transportation, Inc.		9,952		189,088
Kirby Corp.*		4,185		184,349
Genesee & Wyoming, Inc. — Class A*		3,442		182,254
Atlas Air Worldwide Holdings, Inc.*		3,194		178,321
Old Dominion Freight Line, Inc.*		5,508		176,201
Dollar Thrifty Automotive Group, Inc.*		3,721		175,854
HUB Group, Inc. — Class A*		4,837		169,972
AirTran Holdings, Inc.*		20,318		150,150
Allegiant Travel Co. — Class A		2,751		135,459
Arkansas Best Corp.		4,690		128,600
Heartland Express, Inc.		7,441		119,205
Alexander & Baldwin, Inc.		2,970		118,889
Genco Shipping & Trading Ltd.*		7,536		108,518
Copa Holdings S.A. — Class A		1,844		108,501
UTI Worldwide, Inc.		5,070		107,484
Republic Airways Holdings, Inc.*		12,450		91,134
Total Industrials				13,028,648
Total Common Stocks (Cost $9,267,967)				13,028,648

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	58,537		58,537
Total Repurchase Agreement (Cost $58,537)				58,537
Total Investments - 100.0% (Cost $9,326,504)			$	13,087,185
Cash & Other Assets, Less Liabilities - 0.0%				3,183
Total Net Assets - 100.0%			$	13,090,368

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Repurchase Agreement — See Note 4.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 87

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	13,028,648
Repurchase agreements, at value		58,537
Total investments		13,087,185
Cash		964
Receivables:
Fund shares sold		563,216
Dividends		6,876
Total assets		13,658,241
Liabilities:
Payable for:
Securities purchased		398,475
Fund shares redeemed		145,074
Management fees		9,218
Custodian fees		358
Transfer agent/maintenance fees		2,711
Investor service fees		2,711
Portfolio accounting fees		1,085
Other		8,241
Total liabilities		567,873
Net assets	$	13,090,368
Net assets consist of:
Paid in capital	$	21,413,184
Accumulated net investment loss		—
Accumulated net realized loss on investments		(12,083,497	)
Net unrealized appreciation on investments		3,760,681
Net assets	$	13,090,368
Capital shares outstanding		831,532
Net asset value per share	$	15.74
Investments, at cost	$	9,267,967
Repurchase agreements, at cost		58,537
Total cost	$	9,326,504
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends (net of foreign withholding tax of $1,403)	$	161,087
Interest		111
Total investment income		161,198
Expenses:
Management fees		102,720
Transfer agent and administrative fees		30,212
Investor service fees		30,211
Portfolio accounting fees		12,085
Trustees’ fees*		1,317
Audit & outside service fees		10,779
Printing fees		12,063
Miscellaneous		640
Total expenses		200,027
Net investment loss		(38,829	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,130,692	)
Net realized loss		(2,130,692	)
Net change in unrealized appreciation (depreciation) on:
Investments		2,028,821
Net change in unrealized appreciation (depreciation)		2,028,821
Net realized and unrealized loss		(101,871	)
Net decrease in net assets resulting from operations	$	(140,700	)

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

88 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In net Assets From Operations:
Net investment loss	$	(38,829	)	$	(17,321	)
Net realized loss on investments		(2,130,692	)		(2,177,217	)
Net change in unrealized appreciation (depreciation) on investments		2,028,821			(567,169	)
Net decrease in net assets resulting from operations		(140,700	)		(2,761,707	)
Distributions to shareholders from:
Net investment income		—			(41,800	)
Total distributions to shareholders		—			(41,800	)
Capital share transactions:
Proceeds from sale of shares		96,743,746			51,524,372
Distributions reinvested		—			41,800
Cost of shares redeemed		(91,975,038	)		(61,809,749	)
Net increase (decrease) from capital share transactions		4,768,708			(10,243,577	)
Net increase (decrease) in net assets		4,628,008			(13,047,084	)
Net assets:
Beginning of year		8,462,360			21,509,444
End of year	$	13,090,368		$	8,462,360
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		6,942,538			4,767,262
Shares issued from reinvestment of distributions		—			3,533
Shares redeemed		(6,778,440	)		(6,075,172	)
Net increase (decrease) in shares		164,098			(1,304,377	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 89

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS
Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	12.68		$	10.91		$	14.85		$	35.05		$	32.64
Income (loss) from investment operations:
Net investment income (loss)a		(.04	)		(.03	)		.04			(.04	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		3.10			1.92			(3.80	)		(2.24	)		2.65
Total from investment operations		3.06			1.89			(3.76	)		(2.28	)		2.41
Less distributions from:
Net investment income		—			(.12	)		—			—			—
Net realized gains		—			—			(.18	)		(17.92	)		—
Total distributions		—			(.12	)		(.18	)		(17.92	)		—
Net asset value, end of period	$	15.74		$	12.68		$	10.91		$	14.85		$	35.05
Total Returnb		24.13	%		17.39	%		(25.26	%)		(8.75	%)		7.38	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,090		$	8,462		$	21,509		$	8,513		$	29,549
Ratios to average net assets:
Net investment income (loss)		(0.32	%)		(0.29	%)		0.27	%		(0.12	%)		(0.68	%)
Total expenses		1.65	%		1.67	%		1.62	%		1.60	%		1.59	%
Portfolio turnover rate		693	%		857	%		544	%		284	%		249	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

90 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

UTILITIES FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that operate public utilities (“Utilities Companies”).

Inception: May 2, 2001

Utility companies underperformed the broader equity markets in 2010, as investors sought out investments with more leverage to the expanding economy. Regulated utilities have been steady performers, particularly during the recent deflationary environment, and earnings growth is expected to grow moderately. A glut of capacity, however, will keep pressure on prices the less-regulated power generators can charge.

For the one-year period ended December 31, 2010, Utilities Fund returned 6.88%, compared with a gain of 15.06% for the S&P 500^® Index. Within the sector, the Multi-Utilities segment, a third of the portfolio weight, contributed the most to the Fund’s return. Electric Utilities, the most heavily weighted segment in the sector, was the next-largest contributor to the Fund’s return. Independent Power Producers and Oil, Gas & Consumable Fuels, both relatively lightly weighted in the sector, had negative performance and detracted from Fund return.

Southern Co., Dominion Resources, Inc. and National Fuel Gas Co. were among the Fund’s best-performing stocks over the one-year period, while Exelon Corp., FirstEnergy Corp. and Mirant Corp. were among the weakest performers.

Performance displayed represents past performance which is no guarantee of future results.

Cumulative Fund Performance:
May 2, 2001 – December 31, 2010

^† Data points for the line graph do not reflect the reinvestment of dividends on securities in the index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
UTILITIES FUND		6.88	%		3.18	%		-0.73	%
S&P 500 INDEX		15.06	%		2.29	%		1.85	%
S&P 500 UTILITIES INDEX		5.46	%		3.89	%		1.24	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P 500 Utilities Index are unmanaged stock indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)

Southern Co.	3.4	%
Exelon Corp.	3.2	%
Dominion Resources, Inc.	3.0	%
Duke Energy Corp.	2.9	%
NextEra Energy, Inc.	2.8	%
PG&E Corp.	2.6	%
American Electric Power Company, Inc.	2.5	%
Public Service Enterprise Group, Inc.	2.4	%
Consolidated Edison, Inc.	2.3	%
Entergy Corp.	2.1	%
Top Ten Total	27.2	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

the RYDEX|SGI variable trust annual report | 91

SCHEDULE OF INVESTMENTS December 31, 2010

UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.5%
UTILITIES - 99.5%
Southern Co.		13,671	$	522,642
Exelon Corp.		11,719		487,979
Dominion Resources, Inc.		10,770		460,094
Duke Energy Corp.		25,326		451,056
NextEra Energy, Inc.		8,346		433,909
PG&E Corp.		8,324		398,220
American Electric Power Company, Inc.		10,692		384,698
Public Service Enterprise Group, Inc.		11,775		374,563
Consolidated Edison, Inc.		7,093		351,600
Entergy Corp.		4,674		331,059
PPL Corp.		12,568		330,790
Progress Energy, Inc.		7,576		329,404
Sempra Energy		6,259		328,472
Edison International		8,461		326,595
FirstEnergy Corp.		8,471		313,596
Xcel Energy, Inc.		12,874		303,183
AES Corp.*		23,809		289,994
DTE Energy Co.		5,634		255,333
Wisconsin Energy Corp.		4,095		241,032
Ameren Corp.		8,529		240,433
CenterPoint Energy, Inc.		15,125		237,765
Constellation Energy Group, Inc.		7,742		237,137
Oneok, Inc.		4,076		226,096
Calpine Corp.*		16,831		224,526
National Fuel Gas Co.		3,340		219,171
Northeast Utilities		6,864		218,824
SCANA Corp.		5,172		209,983
NRG Energy, Inc.*		10,641		207,925
NiSource, Inc.		11,734		206,753
Pinnacle West Capital Corp.		4,738		196,390
CMS Energy Corp.		10,478		194,891
OGE Energy Corp.		4,272		194,547
American Water Works Company, Inc.		7,681		194,253
Allegheny Energy, Inc.		7,843		190,114
Alliant Energy Corp.		5,100		187,527
Pepco Holdings, Inc.		10,253		187,117
TECO Energy, Inc.		10,180		181,204
Integrys Energy Group, Inc.		3,692		179,099
Energen Corp.		3,602		173,833
UGI Corp.		5,460		172,427
NSTAR		4,027		169,899
MDU Resources Group, Inc.		8,345		169,153
N.V. Energy, Inc.		11,886		166,998
Aqua America, Inc.		7,270		163,430
Questar Corp.		9,336		162,540
DPL, Inc.		6,270		161,202
Cia Energetica de Minas Gerais ADR		9,590		159,098
Atmos Energy Corp.		5,001		156,031
AGL Resources, Inc.		4,334		155,374
Westar Energy, Inc.		6,135		154,357
Great Plains Energy, Inc.		7,714		149,574
National Grid plc ADR		3,190		141,572
Nicor, Inc.		2,801		139,826
ITC Holdings Corp.		2,206		136,728
Piedmont Natural Gas Company, Inc.		4,584		128,169
Cleco Corp.		4,100		126,116
WGL Holdings, Inc.		3,499		125,159
IDACORP, Inc.		3,343		123,624
Hawaiian Electric Industries, Inc.		5,312		121,060
Portland General Electric Co.		5,338		115,835
UIL Holdings Corp.		3,780		113,249
Unisource Energy Corp.		2,937		105,262
Vectren Corp.		4,146		105,225
New Jersey Resources Corp.		2,376		102,429
Black Hills Corp.		3,325		99,750
Southwest Gas Corp.		2,593		95,085
NorthWestern Corp.		3,257		93,899
Avista Corp.		4,108		92,512
PNM Resources, Inc.		7,087		92,273
El Paso Electric Co.*		3,173		87,353
South Jersey Industries, Inc.		1,569		82,875
Northwest Natural Gas Co.		1,739		80,811
Dynegy, Inc. — Class A*		13,540		76,095
Total Utilities				15,346,797
Total Common Stocks (Cost $11,107,420)				15,346,797

	Face
	Amount
REPURCHASE AGREEMENT††,1 - 0.5%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	74,544		74,544
Total Repurchase Agreement (Cost $74,544)				74,544
Total Investments - 100.0% (Cost $11,181,964)			$	15,421,341
Liabilities, Less Cash & Other Assets - 0.0%				(364	)
Total Net Assets – 100.0%			$	15,420,977

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1 ADR — plc   —	Repurchase Agreement — See Note 4. American Depository Receipt Public Limited Company

92 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	15,346,797
Repurchase agreements, at value		74,544
Total investments		15,421,341
Cash		3,691
Receivables:
Securities sold		635,214
Dividends		38,207
Total assets		16,098,453
Liabilities:
Payable for:
Fund shares redeemed		634,799
Management fees		11,776
Custodian fees		458
Transfer agent/maintenance fees		3,463
Investor service fees		3,463
Portfolio accounting fees		1,385
Other		22,132
Total liabilities		677,476
Net Assets	$	15,420,977
Net assets consist of:
Paid in capital	$	15,628,693
Undistributed net investment income		439,334
Accumulated net realized loss on investments		(4,886,427	)
Net unrealized appreciation on investments		4,239,377
Net assets	$	15,420,977
Capital shares outstanding		904,889
Net asset value per share	$	17.04
Investments, at cost	$	11,107,420
Repurchase agreements, at cost		74,544
Total cost	$	11,181,964
STATEMENT OF OPERATIONS For the Year Ended December 31, 2010
Investment Income:
Dividends (net of foreign withholding tax of $875)	$	732,867
Interest		191
Total investment income		733,058
Expenses:
Management fees		150,518
Transfer agent and administrative fees		44,270
Investor service fees		44,270
Portfolio accounting fees		17,707
Trustees’ fees*		2,077
Printing fees		15,452
Miscellaneous		19,431
Total expenses		293,725
Net investment income		439,333
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,038	)
Net realized loss		(4,038	)
Net change in unrealized appreciation (depreciation) on:
Investments		691,999
Net change in unrealized appreciation (depreciation)		691,999
Net realized and unrealized gain		687,961
Net increase in net assets resulting from operations	$	1,127,294

^* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 93

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	439,333		$	552,285
Net realized gain (loss) on investments		(4,038	)		698,742
Net change in unrealized appreciation (depreciation) on investments		691,999			(136,938	)
Net increase in net assets resulting from operations		1,127,294			1,114,089
Distributions to shareholders from:
Net investment income		(552,285	)		(777,786	)
Total distributions to shareholders		(552,285	)		(777,786	)
Capital share transactions:
Proceeds from sale of shares		112,771,956			71,149,584
Distributions reinvested		552,285			777,786
Cost of shares redeemed		(114,292,141	)		(90,792,665	)
Net decrease from capital share transactions		(967,900	)		(18,865,295	)
Net decrease in net assets		(392,891	)		(18,528,992	)
Net assets:
Beginning of year		15,813,868			34,342,860
End of year	$	15,420,977		$	15,813,868
Undistributed net investment income at end of year	$	439,334		$	552,286
Capital share activity:
Shares sold		6,859,200			4,637,775
Shares issued from reinvestment of distributions		32,660			50,506
Shares redeemed		(6,950,576	)		(5,953,797	)
Net decrease in shares		(58,716	)		(1,265,516	)

94 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

UTILITIES FUND

FINANCIAL HIGHLIGHTS

Selected data for each share of capital stock outstanding throughout each period

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	16.41		$	15.41		$	22.29		$	22.38		$	19.09
Income (loss) from investment operations:
Net investment incomea		.41			.41			.37			.32			.36
Net gain (loss) on investments (realized and unrealized)		.72			1.65			(6.97	)		2.59			3.64
Total from investment operations		1.13			2.06			(6.60	)		2.91			4.00
Less distributions from:
Net investment income		(.50	)		(1.06	)		(.08	)		(.39	)		(.49	)
Net realized gains		—			—			(.20	)		(2.61	)		(.22	)
Total distributions		(.50	)		(1.06	)		(.28	)		(3.00	)		(.71	)
Net asset value, end of period	$	17.04		$	16.41		$	15.41		$	22.29		$	22.38
Total Returnb		6.88	%		13.80	%		(29.57	%)		12.86	%		20.96	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,421		$	15,814		$	34,343		$	65,532		$	71,719
Ratios to average net assets:
Net investment income		2.48	%		2.69	%		1.90	%		1.32	%		1.73	%
Total expenses		1.66	%		1.67	%		1.61	%		1.58	%		1.59	%
Portfolio turnover rate		561	%		309	%		293	%		244	%		169	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 95

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies

Organization

The Rydex Variable Trust (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company and is authorized to issue an unlimited number of shares (no par value). The Trust offers shares of the funds to insurance companies for their variable annuity and variable life insurance contracts.

At December 31, 2010, the Trust consisted of fifty-eight separate Funds. This report covers the Sector Funds (the “Funds”), while the other funds are contained in separate reports.

Security Global Investors (“SGI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (“RDL”) acts as principal underwriter for the Trust. SGI, RFS and the RDL are affiliated entities.

The Sector Funds invest in a specific industry sector. To the extent that investments are concentrated in a single sector, the Funds are subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting such sector.

The Funds seek capital appreciation and invest substantially all of their assets in equity securities of companies involved in their sector.

Significant Accounting Policies

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

A. Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Investments for which market quotations are not readily available are fair valued as determined in good faith by Rydex Investments under direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related markets.

B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.

E. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays SGI investment advisory fees calculated at an annualized rate of 0.85% of the average daily net assets of each of the Funds, except the Precious Metals Fund, which is 0.75% of the average daily net assets.

RFS provides transfer agent and administrative services to the Funds for fees calculated at an annualized rate of 0.25% of the average daily net assets of each Fund.

RFS also provides accounting services to the Trust for fees calculated at an annualized rate of 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each Fund.

96 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

RFS engages external service providers to perform other necessary services to the Trust, such as accounting and auditing related services, legal services, printing and mailing, etc. on a pass through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets. Organizational and setup costs for new Funds are paid by the Trust.

The Trust has adopted an Investor Services Plan for which the RDL and other firms that provide investor services (“Service Providers”) may receive compensation. The Funds will pay investor service fees at an annual rate not to exceed 0.25% of average daily net assets. The RDL, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

Certain officers and trustees of the Trust are also officers of SGI, RFS and the RDL.

3. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on Federal income tax returns for all open tax years (fiscal years 2007-2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales.

Permanent book and tax basis differences, if any, will result in reclassifications. This may include net operating losses not utilized during the current period and expired capital loss carryforward or permanently lost due to limitations in the Internal Revenue Code. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended December 31, 2010, the following capital loss carryforward amounts expired, were used, or were permanently lost due to loss limitation rules in Section 382 of the Internal Revenue Code:

Fund	Amount
Basic Materials Fund	$	426,671
Biotechnology Fund		608,485
Consumer Products Fund		1,564,884
Electronics Fund		9,483,741
Energy Fund		855,054
Energy Services Fund		989,167
Health Care Fund		958,837
Internet Fund		4,381,289
Precious Metals Fund		4,952,923
Retailing Fund		458,642
Technology Fund		2,321,375
Telecommunications Fund		545,775
Utilities Fund		192,376

The tax character of distributions paid during the year ended December 31, 2010, was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Banking Fund	$	78,777	$	—	$	78,777
Basic Materials Fund		231,949		—		231,949
Biotechnology Fund		—		—		—
Consumer Products Fund		242,595		—		242,595
Electronics Fund		1,405,357		203,679		1,609,036
Energy Fund		171,009		—		171,009
Energy Services Fund		—		—		—
Financial Services Fund		72,499		—		72,499

the RYDEX|SGI variable trust annual report | 97

NOTES TO FINANCIAL STATEMENTS (continued)

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Health Care Fund	$	41,798	$	—	$	41,798
Internet Fund		—		—		—
Leisure Fund		10,939		—		10,939
Precious Metals Fund		4,015		—		4,015
Retailing Fund		—		—		—
Technology Fund		—		—		—
Telecommunications Fund		124,808		—		124,808
Transportation Fund		—		—		—
Utilities Fund		552,285		—		552,285

The tax character of distributions paid during the year ended December 31, 2009, was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Banking Fund	$	435,757	$	—	$	435,757
Basic Materials Fund		86,889		1,278,910		1,365,799
Biotechnology Fund		—		—		—
Consumer Products Fund		346,841		—		346,841
Electronics Fund		—		—		—
Energy Fund		576		3,006,826		3,007,402
Energy Services Fund		—		2,202,081		2,202,081
Financial Services Fund		254,482		—		254,482
Health Care Fund		—		—		—
Internet Fund		—		—		—
Leisure Fund		—		—		—
Precious Metals Fund		—		—		—
Retailing Fund		—		—		—
Technology Fund		—		—		—
Telecommunications Fund		180,137		—		180,137
Transportation Fund		41,800		—		41,800
Utilities Fund		777,786		—		777,786

The tax character of distributable earnings/(accumulated losses) at December 31, 2010, was as follows:

	Undistributed		Undistributed		Net Unrealized
	Ordinary		Long-Term		Appreciation/			Capital Loss
Fund	Income		Capital Gain		Depreciation			Carryforward
Banking Fund	$	8,767	$	—	$	(907,536	)	$	(9,595,061	)1
Basic Materials Fund		—		2,783,814		10,045,021			—
Biotechnology Fund		—		—		1,310,235			(10,378,041	)1
Consumer Products Fund		320,376		—		2,560,364			(2,640,582	)1
Electronics Fund		—		2,395,856		351,668			(2,636,752	)1
Energy Fund		—		185,047		14,030,883			—
Energy Services Fund		—		2,664,613		13,326,259			—
Financial Services Fund		9,374		—		(697,850	)		(6,229,704	)1
Health Care Fund		—		—		633,007			(6,098,251	)1
Internet Fund		—		—		4,520,055			(1,084,825	)1
Leisure Fund		—		—		2,377,511			(2,562,632	)1
Precious Metals Fund		57,336		—		48,899,199			(2,269,240	)1
Retailing Fund		—		—		1,633,210			(651,628	)1
Technology Fund		—		598,420		4,321,333			(1,730,861	)1
Telecommunications Fund		86,624		83,550		338,047			(1,710,242	)1
Transportation Fund		—		—		1,449,239			(9,772,055	)1
Utilities Fund		439,334		—		905,618			(1,552,668	)1

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

98 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

¹A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows:

																						Total
	Expires in			Expires in			Expires in			Expires in			Expires in			Expires in			Expires in			Capital Loss
Fund	2012			2013			2014			2015			2016			2017			2018			Carryforward
Banking Fund	$	—		$	(470,556	)	$	—		$	—		$	(1,380,916	)	$	(6,378,417	)	$	(1,365,172	)	$	(9,595,061	)
Biotechnology Fund		(1,880,980	)		(739,559	)		(1,048,743	)		(717,792	)		(239,044	)		(5,635,438	)		(116,485	)		(10,378,041	)
Consumer Products Fund		—			—			—			—			—			(2,640,582	)		—			(2,640,582	)
Electronics Fund		(504,508	)		(484,274	)		(329,594	)		(329,594	)		(329,594	)		(67,626	)		(591,562	)		(2,636,752	)
Financial Services Fund		—			—			—			(1,122,489	)		(2,376,570	)		(2,453,589	)		(277,056	)		(6,229,704	)
Health Care Fund		—			—			—			—			(1,097,466	)		(5,000,785	)		—			(6,098,251	)
Internet Fund		—			—			—			—			(1,084,825	)		—			—			(1,084,825	)
Leisure Fund		—			—			—			—			(2,050,147	)		—			(512,485	)		(2,562,632	)
Precious Metals Fund		—			—			—			—			—			(2,269,240	)		—			(2,269,240	)
Retailing Fund		—			—			—			—			—			(651,628	)		—			(651,628	)
Technology Fund		—			—			—			—			(1,730,861	)		—			—			(1,730,861	)
Telecommunications Fund		—			—			—			—			(650,713	)		(1,059,529	)		—			(1,710,242	)
Transportation Fund		—			—			—			—			(593,525	)		(8,058,463	)		(1,120,067	)		(9,772,055	)
Utilities Fund		—			—			—			—			(704,929	)		(847,739	)		—			(1,552,668	)

At December 31, 2010, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

			Tax		Tax			Net
	Tax		Unrealized		Unrealized			Unrealized
Fund	Cost		Gain		Loss			Gain (Loss)
Banking Fund	$	6,378,154	$	—	$	(907,536	)	$	(907,536	)
Basic Materials Fund		39,156,482		10,135,654		(90,633	)		10,045,021
Biotechnology Fund		12,531,902		1,421,810		(111,575	)		1,310,235
Consumer Products Fund		12,659,270		2,576,515		(16,151	)		2,560,364
Electronics Fund		8,941,076		383,272		(31,604	)		351,668
Energy Fund		28,475,709		14,040,737		(9,854	)		14,030,883
Energy Services Fund		28,432,421		13,441,221		(114,962	)		13,326,259
Financial Services Fund		8,623,378		—		(697,850	)		(697,850	)
Health Care Fund		10,695,401		661,802		(28,795	)		633,007
Internet Fund		12,278,602		4,577,622		(57,567	)		4,520,055
Leisure Fund		10,574,485		2,427,180		(49,669	)		2,377,511
Precious Metals Fund		68,715,206		49,129,863		(230,664	)		48,899,199
Retailing Fund		7,863,947		1,652,883		(19,673	)		1,633,210
Technology Fund		17,188,324		4,423,333		(102,000	)		4,321,333
Telecommunications Fund		7,760,207		372,016		(33,969	)		338,047
Transportation Fund		11,637,946		1,513,689		(64,450	)		1,449,239
Utilities Fund		14,515,723		914,621		(9,003	)		905,618

4. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund. Repurchase agreements are valued at amortized cost, which approximates market value.

The repurchase agreements executed by the joint account and outstanding at December 31, 2010, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.10% due 01/03/11	$	11,982,762	$	11,982,762	$	11,982,795

At December 31, 2010, the collateral for the repurchase agreements in the joint account was as follows:

Security Type	Maturity Date		Range of Rate			Par Value		Market Value
U.S. Treasury Notes		11/15/19		3.38	%	$	11,781,700	$	12,222,476

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek

the RYDEX|SGI variable trust annual report | 99

NOTES TO FINANCIAL STATEMENTS (continued)

to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

5. Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 —	quoted prices in active markets for identical investments.
Level 2 —	other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3 —	significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2010:

	Level 1		Level 2		Level 3
	Investments		Investments		Investments
Fund	In Securities		In Securities		In Securities		Total
Assets
Banking Fund	$	5,433,836	$	36,782	$	—	$	5,470,618
Basic Materials Fund		48,933,062		268,441		—		49,201,503
Biotechnology Fund		13,718,443		123,694		—		13,842,137
Consumer Products Fund		15,170,438		49,196		—		15,219,634
Electronics Fund		9,232,517		60,227		—		9,292,744
Energy Fund		42,262,094		244,498		—		42,506,592
Energy Services Fund		41,289,860		468,820		—		41,758,680
Financial Services Fund		7,876,272		49,256		—		7,925,528
Health Care Fund		11,252,207		76,201		—		11,328,408
Internet Fund		16,694,910		103,747		—		16,798,657
Leisure Fund		12,881,426		70,570		—		12,951,996
Precious Metals Fund		117,005,829		608,576		—		117,614,405
Retailing Fund		9,443,381		53,776		—		9,497,157
Technology Fund		21,380,553		129,104		—		21,509,657
Telecommunications Fund		8,031,227		67,027		—		8,098,254
Transportation Fund		13,028,648		58,537		—		13,087,185
Utilities Fund		15,346,797		74,544		—		15,421,341

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective January 1, 2010. This update applies to the Funds’ disclosures about transfers in and out of all levels of the fair value hierarchy and the reasons for the transfers as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy. Effective for interim and annual periods beginning after December 15, 2010, purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.

For the year ended December 31, 2010, there were no significant transfers between Levels.

100 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (concluded)

6. Securities Transactions

During the year ended December 31, 2010, purchases and sales of investment securities, excluding short-term and temporary cash investments, were:

			Basic		Biotech-		Consumer						Energy
	Banking		Materials		nology		Products		Electronics		Energy		Services
	Fund		Fund		Fund		Fund		Fund		Fund		Fund
Purchases	$	75,177,794	$	146,298,211	$	84,591,283	$	80,667,683	$	122,893,554	$	74,945,090	$	95,747,009
Sales	$	74,604,103	$	149,693,175	$	85,403,263	$	89,053,686	$	136,807,463	$	76,726,745	$	100,342,628

	Financial		Health						Precious
	Services		Care		Internet		Leisure		Metals		Retailing		Technology
	Fund		Fund		Fund		Fund		Fund		Fund		Fund
Purchases	$	68,593,174	$	86,978,425	$	62,480,662	$	61,827,849	$	195,043,603	$	74,566,017	$	85,975,247
Sales	$	77,642,915	$	102,813,040	$	77,374,623	$	61,238,523	$	192,333,454	$	81,099,859	$	104,918,122

	Telecommunications		Transportation		Utilities
	Fund		Fund		Fund
Purchases	$	87,466,503	$	87,333,606	$	98,210,666
Sales	$	86,119,127	$	82,603,389	$	99,272,728

7. Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33 1/3% of a Fund’s net assets, 33 1/3% of a Fund’s assets held by the Custodian or 33 1/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. As of and for the period ended December 31, 2010, the Funds did not have any outstanding borrowings under this agreement.

8. Acquisition of Security Benefit Corporation

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors II, LLC (formerly PADCO Advisors II, Inc.), the Funds’ investment advisor (the “Investment Advisor”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Advisor (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction did not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreement with the Investment Advisor (the “Previous Agreement”). A new investment advisory agreement (“New Agreement”) was approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreement are substantially identical to the Previous Agreement, except with respect to the date of execution.

9. Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ Distributor, Rydex Distributors, LLC, a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

10. Subsequent Events

Effective January 3, 2011, Rydex Advisors II, LLC, the Funds’ investment advisor was merged with and into Security Investors, LLC, which will operate under the name SGI.

The foregoing internal restructuring is not expected to affect the investment advisory services rendered to the Funds, which will continue to be managed on a day-to-day basis by the same teams of portfolio managers. The investment philosophies, strategies, and processes of the Funds also will remain the same.

In order to implement the restructuring, technical amendments were made to the Funds’ investment advisory agreement with Rydex Advisors II, LLC, in order to reflect the change of the identity of the investment advisor. No other changes will be made to the investment advisory agreement of the Funds, and the fees and expenses of the Funds will remain the same.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
of Rydex Variable Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (seventeen of the series constituting the Rydex Variable Trust) (the “Funds”) as of December 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 25, 2008 expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds at December 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 24, 2011

102 | the RYDEX|SGI variable trust annual report

OTHER INFORMATION (Unaudited)

Tax Information

This information is being provided as required by the Internal Revenue Code. Amounts shown may differ from those elsewhere in the report because of differences in tax and financial reporting practice.

Of the ordinary income distributions paid during the year, the following funds had the corresponding percentages qualify for the dividends received deduction for corporations:

Fund	%Qualifying
Banking Fund		100	%
Basic Materials Fund		100	%
Consumer Products Fund		100	%
Energy Fund		100	%
Financial Services Fund		100	%
Health Care Fund		100	%
Leisure Fund		100	%
Precious Metals Fund		100	%
Telecommunications Fund		100	%
Utilities Fund		100	%

With respect to the taxable year ended December 31, 2010, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gain of such year:

	Electronics
	Fund
From long-term capital gains, subject to the 15% rate gains category:	$	203,679

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Change of Address

Effective January 17, 2011, the RYDEX | SGI office was moved to Four Irvington Centre, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

SGI Board Review and Approval of the Investment Advisory Agreements

At an in-person meeting of the Trust’s Board of Trustees held on January 28, 2010, called for the purpose of, among other things, voting on the approval of the investment advisory and sub-advisory agreements applicable to the series of the Trust (the “Funds”), the Trust’s Board of Trustees, including the Independent Trustees, unanimously approved the continuation for a two-year period the investment advisory agreements between the Trust and Rydex Advisors II, LLC (formerly, PADCO Advisors II, Inc., and referred to herein as “Rydex”). In reaching this conclusion, the Trustees requested and obtained from Rydex and each investment sub-adviser such information as the Trustees deemed reasonably necessary to evaluate the proposed renewal of the agreements. The Trustees carefully evaluated this information and were advised by legal counsel with respect to their deliberations.

In considering the approval of the investment advisory and sub-advisory agreements, the Independent Trustees evaluated a number of considerations, including, among others, (1) the nature, extent, and quality of the advisory services to be provided by Rydex; (2) the investment performance of the Funds and Rydex; (3) the costs of services provided by Rydex and the profits derived by Rydex from its relationship with the Funds; (4) a comparison of each Funds’ expense ratios and those of similarly situated funds; (5) benefits (such as soft dollars) to Rydex and its affiliates from their relationship with the Funds (and any corresponding benefits to the Funds); (6) other factors the Board deemed to be relevant. The Board also took into account other

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OTHER INFORMATION (Unaudited) (concluded)

considerations that it believed, in light of the legal advice furnished to the Independent Trustees by their independent legal counsel and the Trustees’ own business judgment, to be relevant. Following its review, the Trust’s Board determined that the investment advisory agreement will enable Fund shareholders to obtain high quality services at a cost that is appropriate, reasonable and in the best interests of shareholders. Accordingly, the Trustees, including the Independent Trustees, unanimously approved the renewal of the investment advisory agreements based upon the following considerations, among others:

• The nature, extent and quality of the advisory services to be provided. The Board of Trustees concluded that Rydex is capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided in the past, Rydex’s management capabilities demonstrated with respect to the Funds and other mutual funds managed by Rydex, the professional qualifications and experience of Rydex and Rydex’s investment and management oversight processes. The Trustees also determined that Rydex proposed to provide investment and related services that were of the same quality and quantity as services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Fund. With respect to the Funds, the Trustees concluded on the basis of information compiled by Morningstar that Rydex and the investment sub-advisers had achieved investment performance that was acceptable, and competitive or superior relative to comparable funds over trailing periods.

• The cost of advisory services provided and the level of profitability. On the basis of the Board’s review of the fees to be charged by Rydex for investment advisory and other services, and the estimated profitability of Rydex’s relationship with the Funds, the Board concluded that the level of investment advisory fees and Rydex’s profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and Rydex and its affiliates. On the basis of comparative information compiled by Morningstar, the Trustees determined that the advisory fees and estimated overall expense ratio of each Fund are consistent with, and often below, industry medians, particularly with respect to mutual funds of comparable size.

• Whether the advisory fees reflect economies of scale. The Trustees concluded that the Funds’ investment advisory fees appropriately reflect the current economic environment for Rydex and the competitive nature of the mutual fund market.

• The extent to which economies of scale will be realized as the Fund grows. While the Funds’ investment advisory fees do not reduce should fund assets grow meaningfully, the Trustees determined that the investment advisory fees payable by the funds already reflect potential future economies of scale to some extent by virtue of their competitive levels (determined with reference to industry standards as reported by Lipper) and Rydex’s estimated profitability at current or foreseeable asset levels. The Trustees also considered that they will have the opportunity to periodically re-examine whether each Fund has achieved economies of scale, and the appropriateness of investment advisory fees payable to Rydex in the future.

104 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of SGI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

All Trustees and Officers may be reached c/o Security Global Investors, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds – 1997		150
Trustee, Chairman of the	Rydex Variable Trust – 1998
Board (1940)	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour	Rydex Series Funds – 1993		150
Trustee (1945)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton	Rydex Series Funds – 1995		150
Trustee (1941)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group
Werner E. Keller	Rydex Series Funds – 2005		150
Trustee (1940)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.	Rydex Series Funds – 2005		150
Trustee (1960)	Rydex Variable Trust – 2005
	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville	Rydex Series Funds – 1997		150
Trustee (1942)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers	Rydex Series Funds – 1993		150
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nikolaos Bonos* Vice President and Treasurer (1963)	Senior Vice President, Security Investors, LLC and Vice President, Security Benefit Asset Management Holdings, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010-2011); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney Catalucci* Chief Compliance Officer and Secretary (1966)	Vice President, Security Benefit Asset Management Holdings, LLC; and Senior Vice President and Chief Compliance Officer, Security Investors, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010-2011); Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice resident of Security Global Investors, LLC (2009 to present)
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Vice President, Security Investors, LLC (2010 to present); Vice President, Security Global Investors, LLC (2010-2011); Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration Rydex Investments (2001 to present)

^* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, in as much as this person is affiliated with Rydex Investments.

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805 King Farm Boulevard, Suite 600
Rockville, MD 20850
www.rydex-sgi.com
800.820.0888
RVASECF-ANN-2-1210x1211

DECEMBER 31, 2010 RYDEX VARIABLE TRUST CLS ADVISORONE FUNDS ANNUAL REPORT AMERIGO FUND CLERMONT FUND SELECT ALLOCATION FUND (For merly, Berolina Fund)

This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

Distributed by Rydex Distributors, LLC.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS	2
ABOUT SHAREHOLDERS’ FUND EXPENSES	4
AMERIGO FUND	6
CLERMONT FUND	12
SELECT ALLOCATION FUND	20
NOTES TO FINANCIAL STATEMENTS	27
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	32
OTHER INFORMATION	33
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	35

the RYDEX|SGI variable trust annual report | 1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

The U.S. economy continued a second year of recovery in 2010, but soft employment and housing markets combined to keep growth tepid. The consensus forecast for U.S. GDP growth was 2.8%, but a consumer spending rally may be needed for it to do better in 2011. Along with better economic reports on retail sales and jobless claims late in 2010, passage of federal legislation to extend Bush-era tax cuts and roll out new stimulus measures boosted equity markets, and prompted many economists to raise growth forecasts for 2011 to 3.5% or higher. Markets were also affected by a change in control of the House of Representatives and a renewed focus on cutting government spending and dealing with the budget deficit.

The U.S. Federal Reserve was responsible for much of the investor optimism that flowed through 2010, slowed only at mid-year by debt problems in Europe and the fading effects of U.S. government stimulus spending that played into fears of a double-dip recession. Concerns that the economy was not growing fast enough to lower an unemployment rate seemingly stuck at more than 9% led the U.S. central bank to signal in August that it would embark on a second round of bond buying in an attempt to keep long-term rates low enough to entice borrowers and spur economic activity. Although critics said such quantitative easing could flame inflation or lead to another asset bubble, the expectation of up to $600 billion in purchases corresponded with a third-quarter stock-market rally, which picked up more steam after the purchases actually began in November. Inflation turned out to be tame in 2010, with prices rising just 1.1%.

Government efforts to support the economy were a plug for stocks in 2010, as markets were carried to highs last seen more than two years ago—just before the collapse of Lehman Brothers. U.S. equity markets were up by double digits in 2010. The NASDAQ Composite Index* led major indices, up 17%, while the Dow Jones Industrial Average Index* and S&P 500^® Index* were up 14% and 15%, respectively. The sweet spot was small cap stocks, often a leader in economic recoveries, and the Russell 2000^® Index* was up 27%. Stocks in the consumer discretionary and industrials sectors, which benefited from exposure to awakening consumers as well as emerging markets and commodities, were up the most, 26% and 23% respectively, while the health care sector provided the weakest return at less than 1%.

Markets around the globe also benefited from the flood of cash unleashed by the U.S. Federal Reserve. Those in many European countries rose despite sovereign debt problems, with the broad STOXX Europe 600 Index* finishing up 9%. Strong economic recovery in Asia benefited markets from Indonesia to South Korea, although the region’s two largest economies, Japan and China, finished the year lower.

Yield-hungry fixed-income investors increasingly took on credit risk over the year, which was reflected in good performance across most sectors. Expectations about too-fast economic growth and possibly a tick up in inflation in the next few quarters prompted a late-year selloff in Treasuries. Although the Fed kept interest rates on hold all year, the yield on Treasuries rose, affecting mortgage rates, which unfortunately came at a time when reports were indicating that house prices continue to fall and a glut of foreclosures may hit the market over the next few years. Still, Treasuries performed well over the year, as fears of a double-dip recession and European debt woes eased. Among the best returns for the year: bonds in the U.S. intermediate high yield space and emerging market bonds. The Barclays Capital U.S. Aggregate Bond Index* returned about 6.5%.

Driven by demand from China and other fast-growing countries, commodities performed strongly in 2010, as investors appeared to be either encouraged by global recovery or worried about inflation. The Dow Jones-UBS Commodity Index* was up almost 17%; indicative of the strength of the raw materials rally was a record high price for copper and gold. While the metals and agriculture sub-indices were higher over the year, the energy index was lower. Oil finished 2010 around $91, rising about 15%.

2 | the RYDEX|SGI variable trust annual report

LETTER TO OUR SHAREHOLDERS (concluded)

The dollar gained on the euro in 2010, reflecting concern about Europe’s crisis in sovereign debt. The dollar weakened against many other currency counterparts around the world, falling most against the yen, as investors coped with record-low rates by searching for higher-yielding assets.

Many economists are calling for recovery to continue in 2011. Some feel there is a chance the economy could overheat, based on continued Fed intervention, causing a spike in interest rates, choking off recovery. Others view high levels of government and consumer debt as weights that could restrain the expansion, with growth insufficient to bring down unemployment. U.S. consumers are vital to a robust global recovery and their improving household incomes and debt burdens, along with rising global profits, should benefit many global regions. Stronger performance is forecast for emerging markets compared with developed economies, which are still shoring up their finances. In the fixed income market, strong corporate balance sheets and a low default rate should combine to further compress spreads, and position credit to outperform government paper in the year ahead.

Whether helping hedge or augment exposures to the equity or fixed-income markets, or introducing alternative assets and strategies to portfolios for overall diversification¹, our products are designed for a range of investment scenarios. Rydex|SGI is pleased to help investors navigate uncertain markets, and we appreciate the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

1	Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
*	Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

NASDAQ Composite Index — a capitalization-weighted index of more than 3,000 companies listed on the NASDAQ Stock Market.

The Dow Jones Industrial Average Index (DJIA) — a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

The Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large-, mid- and small-capitalization companies across 18 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The U.S. Aggregate rolls up into other Barclays Capital flagship indices such as the multi-currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt.

The Dow Jones-UBS Commodity Index aims to provide broadly diversified representation of commodity markets as an asset class. The index is made up of exchange-traded futures on physical commodities. The index represents 19 commodities, which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

the RYDEX|SGI variable trust annual report | 3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2010 and ending December 31, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

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ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

							Beginning		Ending		Expenses
	Expense			Fund			Account Value		Account Value		Paid During
	Ratio1			Return			June 30, 2010		December 31, 2010		Period2
Table 1. Based on actual Fund return3
Amerigo Fund		1.74	%		24.02	%	$	1,000.00	$	1,240.20	$	9.82
Clermont Fund		1.74	%		12.12	%		1,000.00		1,121.21		9.30
Select Allocation Fund		1.74	%		19.39	%		1,000.00		1,193.86		9.62
Table 2. Based on hypothetical 5% return (before expenses)
Amerigo Fund		1.74	%		5.00	%	$	1,000.00	$	1,016.43	$	8.84
Clermont Fund		1.74	%		5.00	%		1,000.00		1,016.43		8.84
Select Allocation Fund		1.74	%		5.00	%		1,000.00		1,016.43		8.84

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.
3	Actual cumulative return at net asset value for the period June 30, 2010 to December 31, 2010.

the RYDEX|SGI variable trust annual report | 5

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

AMERIGO FUND

OBJECTIVE: Seeks long-term growth of capital without regard to current income.

Inception: July 1, 2003

Amerigo Fund rose 15.13% for the year ended December 31, 2010, slightly outperforming its benchmark, the S&P 500^® Index*, which gained 15.06%. While the stock market remained in a wide trading range for the first 11 months of 2010, investor behavior clearly reflected a “risk-on/risk-off” mentality, as “macro” factors appeared to be the primary drivers of market direction.

The first half of 2010 reflected the “risk-off” phase for the markets. During the first half, Amerigo Fund’s allocation to international securities was reduced, with the Fund’s allocation to mid-cap securities significantly increased. Commodity exposure was eliminated in the first quarter. During the “risk-off” phase, the U.S. dollar was strengthening, pressuring returns on international equities and commodities.

During the second half of the year, the Fed’s decision to pursue a second quantitative easing program to stimulate economic growth shifted investor behavior back to “risk-on.” During the second half, Amerigo Fund’s exposure to emerging market securities was increased, as was commodity exposure. In an effort to fund this portfolio allocation adjustment, the Fund’s allocation to large-cap growth was reduced. During the second half of the year, the U.S. dollar was trending lower.

As we move into 2011, our expectation is that market leadership may begin to narrow, as investors become more selective and “valuation” may begin to replace “beta” as a significant source of incremental return.

* Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

Performance displayed represents past performance which is no guarantee of future results.

The returns do not reflect the effects of taxes.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

ETF — Exchange Traded Fund.

Ten Largest Holdings
(% of Total Net Assets)
SPDR S&P 500 ETF Trust	11.1	%
Vanguard Mid-Capital ETF	6.7	%
Powershares QQQ	6.3	%
iShares MSCI Emerging Markets Index Fund	5.2	%
iShares S&P Latin America 40 Index Fund	4.9	%
iShares Russell 1000 Growth Index Fund	4.9	%
iShares Russell Midcap Index Fund	4.7	%
iShares S&P 500 Index Fund	4.4	%
Vanguard Emerging Markets ETF	3.4	%
Vanguard Small-Capital ETF	3.4	%
Top Ten Total	55.0	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

6 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance:
July 1, 2003 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/01/03)
AMERIGO FUND		15.13	%		3.15	%		6.85	%
S&P 500 INDEX		15.06	%		2.29	%		5.44	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported return. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 7

SCHEDULE OF INVESTMENTS	December 31, 2010
AMERIGO FUND

	Shares		Value
COMMON STOCK† - 0.4%
FINANCIAL - 0.4%
Berkshire Hathaway, Inc. — Class B*		11,050	$	885,215
Total Common Stock (Cost $733,607)				885,215
EXCHANGE TRADED FUNDS† - 99.0%
UNITED STATES OF AMERICA - 73.1%
SPDR S&P 500 ETF Trust		176,400		22,187,592
Vanguard Mid-Capital ETF		178,200		13,268,772
Powershares QQQ		229,600		12,506,312
iShares Russell 1000 Growth Index Fund		169,400		9,699,844
iShares Russell Midcap Index Fund		92,800		9,442,400
iShares S&P 500 Index Fund		69,900		8,824,875
Vanguard Small-Capital ETF		92,400		6,711,012
Vanguard Large-Capital ETF		113,100		6,515,691
SPDR Dow Jones Industrial Average ETF Trust		55,500		6,415,800
Vanguard Extended Market ETF		105,400		5,734,814
iShares Russell Midcap Growth Index Fund		99,800		5,655,666
Vanguard Total Stock Market ETF		76,900		4,993,117
SPDR S&P MidCap 400 ETF Trust		30,300		4,989,804
iShares Russell 2000 Index Fund		55,400		4,333,942
Energy Select Sector SPDR Fund		62,600		4,272,450
PowerShares DB US Dollar Index Bullish Fund		148,000		3,361,080
iShares S&P MidCap 400 Index Fund		30,300		2,747,907
RevenueShares Large Capital ETF		111,300		2,631,132
Technology Select Sector SPDR Fund		92,400		2,326,632
PowerShares DB Oil Fund		62,700		1,769,394
Financial Select Sector SPDR Fund		99,800		1,591,810
Vanguard Value ETF		28,900		1,541,237
iShares Diversified Alternatives Trust		29,500		1,491,228
iShares Russell 1000 Value Index Fund		18,500		1,200,095
Vanguard Dividend Appreciation ETF		20,800		1,094,704
SPDR S&P Biotech ETF		9,200		580,336
Total United States of America				145,887,646
INTERNATIONAL - 10.1%
iShares MSCI Emerging Markets Index Fund		219,700		10,462,114
Vanguard Emerging Markets ETF		140,200		6,750,630
SPDR S&P BRIC 40 ETF		54,000		1,481,220
Vanguard FTSE All-World ex-US ETF		29,600		1,412,808
Total International				20,106,772
LATIN AMERICAN REGION - 4.9%
iShares S&P Latin America 40 Index Fund		181,900		9,797,134
CHINA - 2.6%
SPDR S&P China ETF		38,500		2,932,930
iShares FTSE China 25 Index Fund		51,600		2,223,444
Total China				5,156,374
ASIAN PACIFIC REGION - 2.0%
SPDR S&P Emerging Asia Pacific ETF		48,100		4,076,475
CANADA - 1.5%
iShares MSCI Canada Index Fund		99,600		3,087,600
ASIAN PACIFIC REGION EX-JAPAN - 1.5%
iShares MSCI All Country Asia ex-Japan Index Fund		25,800		1,643,460
iShares MSCI Pacific ex-Japan Index Fund		29,600		1,390,608
Total Asian Pacific Region ex-Japan				3,034,068
BRAZIL - 1.3%
iShares MSCI Brazil Index Fund		33,100		2,561,940
GERMANY - 1.1%
iShares MSCI Germany Index Fund		88,800		2,125,872
EUROPE - 0.5%
Vanguard European ETF		20,300		996,527
KOREA - 0.3%
iShares MSCI South Korea Index Fund		9,400		575,186
Total Exchange Traded Funds (Cost $168,781,482)				197,405,594
MUTUAL FUND† - 0.8%
First American Treasury Obligations Fund		1,522,657		1,522,657
Total Mutual Fund (Cost $1,522,657)				1,522,657
Total Investments - 100.2% (Cost $171,037,746)			$	199,813,466
Liabilities, Less Other Assets - (0.2)%				(326,113	)
Total Net Assets - 100.0%			$	199,487,353

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.

8 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

AMERIGO FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	199,813,466
Total investments		199,813,466
Receivables:
Fund shares sold		1,405
Dividends		186,123
Total assets		200,000,994
Liabilities:
Payable for:
Fund shares redeemed		51,840
Management fees		151,836
Custodian fees		5,567
Transfer agent/maintenance fees		42,177
Investor service fees		42,177
Portfolio accounting fees		16,871
Other		203,173
Total liabilities		513,641
Net assets	$	199,487,353
Net assets consist of:
Paid in capital	$	218,690,469
Accumulated net investment loss		(386,274	)
Accumulated net realized loss on investments		(47,592,562	)
Net unrealized appreciation on investments		28,775,720
Net assets	$	199,487,353
Capital shares outstanding		5,777,730
Net asset value per share	$	34.53
Investments, at cost	$	171,037,746
STATEMENT OF OPERATIONS Year Ended December 31, 2010
Investment Income:
Dividends	$	3,045,945
Total investment income		3,045,945
Expenses:
Management fees		1,739,703
Transfer agent and administrative fees		483,250
Investor service fees		483,250
Portfolio accounting fees		193,299
Trustees’ fees*		23,138
Miscellaneous		370,435
Total expenses		3,293,075
Net investment loss		(247,130	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(286,826	)
Investments in unaffiliated issuers		6,610,282
Realized gain distributions from other investment companies		41,509
Net realized gain		6,364,965
Net change in unrealized appreciation (depreciation) on:
Investments		20,547,500
Net change in unrealized appreciation (depreciation)		20,547,500
Net realized and unrealized gain		26,912,465
Net increase in net assets resulting from operations	$	26,665,335

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 9

AMERIGO FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(247,130	)	$	233,651
Net realized gain (loss) on investments		6,364,965			(18,789,230	)
Net change in unrealized appreciation (depreciation) on investments		20,547,500			84,567,045
Net increase in net assets resulting from operations		26,665,335			66,011,466
Distributions to shareholders from:
Net investment income		(179,331	)		(1,134,816	)
Total distributions to shareholders		(179,331	)		(1,134,816	)
Capital share transactions:
Proceeds from sale of shares		29,504,404			24,800,289
Distributions reinvested		179,331			1,134,816
Cost of shares redeemed		(69,754,821	)		(82,617,381	)
Net decrease from capital share transactions		(40,071,086	)		(56,682,276	)
Net increase (decrease) in net assets		(13,585,082	)		8,194,374
Net assets:
Beginning of year		213,072,435			204,878,061
End of Year	$	199,487,353		$	213,072,435
Accumulated/(Undistributed) net investment income/(loss) at end of year	$	(386,274	)	$	234,209
Capital share activity:
Shares sold		967,466			987,651
Shares issued from reinvestment of distributions		5,441			38,481
Shares redeemed		(2,294,722	)		(3,392,250	)
Net decrease in shares		(1,321,815	)		(2,366,118	)

10 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

AMERIGO FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	30.01		$	21.64		$	39.13		$	35.83		$	34.78
Income (loss) from investment operations:
Net investment income (loss)a		(.04	)		.03			.12			.12			.21
Net gain (loss) on investments (realized and unrealized)		4.59			8.49			(17.01	)		4.85			4.06
Total from investment operations		4.55			8.52			(16.89	)		4.97			4.27
Less distributions from:
Net investment income		(.03	)		(.15	)		(.10	)		(.14	)d		(.03	)
Net realized gains		—			—			(.50	)		(1.53	)d		(3.19	)
Total distributions		(.03	)		(.15	)		(.60	)		(1.67	)		(3.22	)
Net asset value, end of period	$	34.53		$	30.01		$	21.64		$	39.13		$	35.83
Total Returnb		15.13	%		39.41	%		(43.09	%)		13.77	%		12.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	199,487		$	213,072		$	204,878		$	364,693		$	279,410
Ratios to average net assets:
Net investment income (loss)		(0.13	%)		0.12	%		0.36	%		0.32	%		0.57	%
Total expensesc		1.70	%		1.71	%		1.65	%		1.63	%		1.64	%
Portfolio turnover rate		77	%		102	%		103	%		88	%		299	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

CLERMONT FUND

OBJECTIVE: Seek a combination of current income and growth of capital.

Inception: July 1, 2003

Clermont Fund had a total return of 10.99% for the year ended December 31, 2010, outperforming its blended benchmark, consisting of 45% S&P 500^® Index and 55% Barclay’s Capital U.S. Credit Index*, which gained 9.48%.

In 2010, there were primarily two keys the portfolio had to get right to stay close to the performance benchmark. First, it had to fight the urge to trade aggressively, as frequent “risk-on/risk-off” trades would have led to under-performance, since the market remained range-bound for most of the year. The second key was that it actually had to stay constructive on the markets, despite having to face several opportunities where cash looked attractive including: the Greece meltdown, the Flash Crash, rising unemployment, Ireland’s struggles, the need for the Fed’s QE II program and North Korea’s artillery attack on South Korea, just to name a few.

During 2010, the key shift in Clermont Fund’s portfolio was a gradual, yet persistent, reduction in large-cap growth exposure as the year progressed. Proceeds were reinvested into mid caps. The net effect was a reduction in the portfolio’s exposure to technology, while increasing exposure to industrials.

With regard to fixed-income positioning, investment-grade securities were reduced, with proceeds being reallocated toward high-yield bonds and equities. This allocation change positioned the portfolio more favorably in the event interest rates begin to rise in 2011. The above-average yield spread of high-yield bonds should help offset a rise in U.S. Treasury yields, while a rise in interest rates due to an improving economy should not impair equity valuations as profit growth expands.

As we enter 2011, “total return” may once again return to the investor lexicon as a viable strategy. With interest rates at low levels and potentially rising, investors may alter their investment strategy from “fixed income” toward “total return,” should equities outperform bonds for a third consecutive year.

* Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

The Barclays Capital U.S. Credit Index comprises the Barclays Capital U.S. Corporate Index and a non-corporate component that includes foreign agencies, sovereigns, supranationals and local authorities. It is a subset of the Barclays Capital U.S. Government/Credit Index and Barclays Capital U.S. Aggregate Index.

Performance displayed represents past performance which is no guarantee of future results.

The returns do not reflect the effects of taxes.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

ETF — Exchange Traded Fund.

Ten Largest Holdings
(% of Total Net Assets)
iShares Barclays Credit Bond Fund	10.8	%
SPDR S&P 500 ETF Trust	9.2	%
iShares iBoxx $ High Yield Corporate Bond Fund	7.0	%
iShares iBoxx Investment Grade Corporate Bond Fund	6.4	%
Vanguard Total Bond Market ETF	5.1	%
SPDR Barclays Capital High Yield Bond ETF	4.7	%
Vanguard Emerging Markets ETF	4.4	%
Vanguard Total Stock Market ETF	3.2	%
SPDR S&P MidCap 400 ETF Trust	3.2	%
iShares S&P 500 Index Fund	2.4	%
Top Ten Total	56.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

12 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance:
July 1, 2003 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

	ONE			FIVE			SINCE INCEPTION
	YEAR			YEAR			(07/01/03)
CLERMONT FUND		10.99	%		1.84	%		3.60	%
S&P 500 INDEX		15.06	%		2.29	%		5.44	%
SYNTHETIC BALANCED BENCHMARK*		9.48	%		4.68	%		6.10	%

* Benchmark reflects a 45/55 ratio of the performance of the S&P 500 Index and the Barclays Capital U.S. Credit Index.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and Barclay’s Capital U.S. Credit Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 13

SCHEDULE OF INVESTMENTS	December 31, 2010
CLERMONT FUND

	Shares		Value
COMMON STOCK† - 1.0%
FINANCIAL - 1.0%
Berkshire Hathaway, Inc. — Class B*		9,500	$	761,045
Total Common Stock (Cost $691,404)				761,045
EXCHANGE TRADED FUNDS† - 88.9%
UNITED STATES OF AMERICA - 77.2%
iShares Barclays Credit Bond Fund		76,500		7,965,945
SPDR S&P 500 ETF Trust		53,900		6,779,542
iShares iBoxx $ High Yield Corporate Bond Fund		57,500		5,191,675
iShares iBoxx Investment Grade Corporate Bond Fund		43,500		4,717,140
Vanguard Total Bond Market ETF		46,600		3,740,582
SPDR Barclays Capital High Yield Bond ETF		88,000		3,494,480
Vanguard Total Stock Market ETF		36,600		2,376,438
SPDR S&P MidCap 400 ETF Trust		14,300		2,354,924
iShares S&P 500 Index Fund		14,300		1,805,375
Powershares QQQ		31,100		1,694,017
Vanguard Mid-Capital ETF		22,200		1,653,012
Vanguard Large-Capital ETF		26,900		1,549,709
SPDR Dow Jones Industrial Average ETF Trust		12,900		1,491,240
Vanguard Extended Market ETF		22,200		1,207,902
Vanguard Small-Capital ETF		15,900		1,154,817
iShares Diversified Alternatives Trust		22,400		1,132,322
iShares Russell Midcap Index Fund		9,500		966,625
PowerShares DB US Dollar Index Bullish Fund		41,600		944,736
iShares Russell 1000 Growth Index Fund		15,900		910,434
Vanguard Value ETF		13,500		719,955
Vanguard Dividend Appreciation ETF		13,000		684,190
iShares Barclays Aggregate Bond Fund		6,400		676,800
Vanguard Intermediate-Term Corporate Bond ETF		7,800		613,860
RevenueShares Large Capital ETF		22,300		527,172
iShares Russell 2000 Index Fund		6,400		500,672
iShares Barclays Intermediate Credit Bond Fund		4,700		494,346
iShares S&P MidCap 400 Index Fund		4,900		444,381
Energy Select Sector SPDR Fund		6,500		443,625
SPDR Barclays Capital Intermediate Term Corporate Bond ETF		6,600		214,896
PIMCO Enhanced Short Maturity Strategy Fund		1,300		130,923
iShares Barclays 1-3 Year Credit Bond Fund		900		93,852
Vanguard Intermediate-Term Bond ETF		1,000		82,490
Vanguard Long-Term Corporate Bond ETF		900		69,741
Vanguard Short-Term Corporate Bond ETF		900		69,669
iShares Barclays 3-7 Year Treasury Bond Fund		600		68,790
iShares Barclays 7-10 Year Treasury Bond Fund		600		56,292
SPDR Barclays Capital Aggregate Bond ETF		1,000		55,540
iShares 10+ Year Credit Bond Fund		900		47,682
SPDR Barclays Capital Long Term Credit Bond ETF		900		32,085
SPDR Barclays Capital Short Term Corporate Bond ETF		900		27,225
iShares S&P 500 Growth Index Fund		100		6,564
iShares S&P 500 Value Index Fund		100		5,959
Total United States of America				57,197,624
INTERNATIONAL - 6.8%
Vanguard Emerging Markets ETF		68,400		3,293,460
Vanguard FTSE All-World ex-US ETF		18,700		892,551
iShares MSCI Emerging Markets Index Fund		17,100		814,302
Total International				5,000,313
GLOBAL - 1.3%
Vanguard Short-Term Bond ETF		9,400		756,324
Vanguard Total World Stock Index Fund ETF		4,700		224,660
Total Global				980,984
LATIN AMERICAN REGION - 1.2%
iShares S&P Latin America 40 Index Fund		17,100		921,006
ASIAN PACIFIC REGION - 1.1%
SPDR S&P Emerging Asia Pacific ETF		6,300		533,925
Vanguard Pacific ETF		4,700		268,088
Total Asian Pacific Region				802,013
EUROPE - 0.8%
Vanguard European ETF		9,500		466,355
iShares S&P Europe 350 Index Fund		3,100		121,768
Total Europe				588,123

14 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
CLERMONT FUND

	Shares		Value
ASIAN PACIFIC REGION EX-JAPAN - 0.3%
iShares MSCI All Country Asia ex- Japan Index Fund		3,100	$	197,470
GERMANY - 0.2%
iShares MSCI Germany Index Fund		6,300		150,822
Total Exchange Traded Funds (Cost $58,978,122)				65,838,355
MUTUAL FUND† - 1.5%
First American Treasury Obligations Fund		1,095,425		1,095,425
Total Mutual Fund (Cost $1,095,425)				1,095,425

	Face
	Amount
CORPORATE BONDS†† - 7.6%
FINANCIAL INSTITUTIONS - 2.2%
Mutual of Omaha Insurance Co. 6.80% due 06/15/361,2	$	725,000		685,703
HSBC Finance Corp. 7.00% due 05/15/12		482,000		517,159
Goldman Sachs Group, Inc. 5.95% due 01/15/27		482,000		462,310
				1,665,172
MATERIALS - 1.2%
Alcoa, Inc. 5.87% due 02/23/22		793,000		787,823
Freeport-McMoRan Copper & Gold, Inc. 8.38% due 04/01/17		50,000		55,313
				843,136
INDUSTRIAL - 1.1%
Chevron Phillips Chemical Company LLC 8.25% due 06/15/191,2		416,000		501,785
Bunge Limited Finance Corp. 8.50% due 06/15/19		274,000		321,272
				823,057
HEALTH CARE - 0.9%
Agilent Technologies, Inc. 6.50% due 11/01/17		577,000		639,518
UTILITIES - 1.5%
Enogex LLC 6.25% due 03/15/201,2		520,000		555,420
Westar Energy, Inc. 6.00% due 07/01/14		468,000		521,057
				1,076,477
INDUSTRIALS - 0.4%
Timken Co. 6.00% due 09/15/14		300,000		330,234
ENERGY - 0.3%
Sunoco, Inc. 4.88% due 10/15/14		237,000		247,009
Total Corporate Bonds (Cost $5,052,152)				5,624,603
U.S. GOVERNMENT SECURITIES†- 0.8%
U.S. Treasury Notes
1.00% due 10/31/11		100,000		100,586
0.88% due 02/29/12		100,000		100,582
0.88% due 01/31/12		100,000		100,559
1.00% due 09/30/11		100,000		100,539
0.75% due 11/30/11		100,000		100,394
0.88% due 05/31/11		100,000		100,285
Total U.S. Government Securities (Cost $601,079)				602,945
Total Investments - 99.8% (Cost $66,418,182)			$	73,922,373
Other Assets, Less Liabilities - 0.2%				125,850
Total Net Assets - 100.0%			$	74,048,223

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Security was acquired through a private placement.
2	Security is a 144A or Section 4(2) security. The total market value of 144A or Section 4(2) securities is $1,742,908 (cost $1,581,358), or 2.4% of total net assets.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 15

CLERMONT FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	73,922,373
Total investments		73,922,373
Receivables:
Fund shares sold		3,133
Dividends		219,325
Interest		79,389
Total assets		74,224,220
Liabilities:
Payable for:
Fund shares redeemed		24,741
Management fees		56,652
Custodian fees		2,077
Transfer agent/maintenance fees		15,736
Investor service fees		15,736
Portfolio accounting fees		6,295
Other		54,760
Total liabilities		175,997
Net Assets	$	74,048,223
Net assets consist of:
Paid in capital	$	74,544,698
Undistributed net investment income		1,304,882
Accumulated net realized loss on investments		(9,305,548	)
Net unrealized appreciation on investments		7,504,191
Net assets	$	74,048,223
Capital shares outstanding		3,125,762
Net asset value per share	$	23.69
Investments, at cost	$	66,418,182

STATEMENT OF OPERATIONS
Year Ended December 31, 2010

Investment Income:
Dividends	$	2,186,173
Interest		351,422
Total investment income		2,537,595
Expenses:
Management fees		621,802
Transfer agent and administrative fees		172,723
Investor service fees		172,723
Portfolio accounting fees		69,089
Trustees’ fees*		8,051
Audit and service fees		60,743
Miscellaneous		73,575
Total expenses		1,178,706
Net investment income		1,358,889
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(91,731	)
Investments in unaffiliated issuers		1,286,923
Realized gain distributions from other investment companies		82,935
Net realized gain		1,278,127
Net change in unrealized appreciation (depreciation) on:
Investments		4,885,068
Net change in unrealized appreciation (depreciation)		4,885,068
Net realized and unrealized gain		6,163,195
Net increase in net assets resulting from operations	$	7,522,084

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

16 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CLERMONT FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	1,358,889		$	1,302,306
Net realized gain (loss) on investments		1,278,127			(2,676,519	)
Net change in unrealized appreciation (depreciation) on investments		4,885,068			12,544,393
Net increase in net assets resulting from operations		7,522,084			11,170,180
Distributions to shareholders from:
Net investment income		(1,293,571	)		(1,340,021	)
Total distributions to shareholders		(1,293,571	)		(1,340,021	)
Capital share transactions:
Proceeds from sale of shares		26,286,130			29,360,353
Distributions reinvested		1,293,571			1,340,021
Cost of shares redeemed		(26,563,162	)		(20,986,699	)
Net increase from capital share transactions		1,016,539			9,713,675
Net increase in net assets		7,245,052			19,543,834
Net assets:
Beginning of year		66,803,171			47,259,337
End of year	$	74,048,223		$	66,803,171
Undistributed net investment income at end of year	$	1,304,882		$	1,302,306
Capital share activity:
Shares sold		1,175,728			1,477,619
Shares issued from reinvestment of distributions		55,902			61,981
Shares redeemed		(1,180,776	)		(1,077,072	)
Net increase in shares		50,854			462,528

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 17

CLERMONT FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	21.73		$	18.09		$	26.79		$	29.90		$	29.41
Income from investment operations:
Net investment incomea		.44			.47			.51			.53			.46
Net gain (loss) on investments (realized and unrealized)		1.94			3.61			(8.60	)		1.40			1.98
Total from investment operations		2.38			4.08			(8.09	)		1.93			2.44
Less distributions from:
Net investment income		(.42	)		(.44	)		(.25	)		(.61	)d		(.64	)
Net realized gains		—			—			(.36	)		(4.43	)d		(1.31	)
Total distributions		(.42	)		(.44	)		(.61	)		(5.04	)		(1.95	)
Net asset value, end of period	$	23.69		$	21.73		$	18.09		$	26.79		$	29.90
Total Returnb		10.99	%		22.58	%		(30.07	%)		6.23	%		8.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	74,048		$	66,803		$	47,259		$	62,264		$	99,809
Ratios to average net assets:
Net investment income		1.97	%		2.41	%		2.19	%		1.73	%		1.51	%
Total expensesc		1.71	%		1.70	%		1.66	%		1.64	%		1.63	%
Portfolio turnover rate		68	%		128	%		149	%		163	%		197	%

a	Net investment income per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Does not include expenses of the underlying funds in which the Fund invests.
d	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

18 | the RYDEX|SGI variable trust annual report

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the RYDEX|SGI variable trust annual report | 19

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)

December 31, 2010

SELECT ALLOCATION FUND

OBJECTIVE: Seeks to provide growth of capital and total return.

Inception: November 10, 2006

Select Allocation Fund (previously known as the Berolina Fund) had a total return of 13.75% for the year ended December 31, 2010, outperforming its blended benchmark, 75% S&P 500^® Index* and 25% Barclay’s Capital U.S. Credit Index*, which rose 12.64%.

Portfolio adjustments during the quarter were minimal, with the Fund reducing commodity exposure and slightly reducing the duration in fixed-income assets. The Fund benefited from its small- and mid-cap positions, which performed strongly the last few months of the year, helping offset some underperformance in its Chinese securities holdings. The Fund did trim some of its international exposure as concerns over European debt in the periphery countries resurfaced again as the year ended. The market spent most of 2010 in a trading range, with the S&P 500 Index fluctuating between 1000 and 1250. It was a frustrating year as the market changed from “risk-on” to “risk-off” and back again without developing a consistent trend.

We entered 2010 with the belief that the market could be similar to 2004, an election year following a strong up-year in the market that also finished up, but with almost all of the return happening in a short period. As such, we reduced our over/under weights, which proved beneficial, as 2010 did play out similar to 2004, with the bulk of the returns happening around the election. The fixed-income portion remains overweight corporate bonds and underweight U.S. government securities. As we look forward, we believe we might see trends start to develop and define themselves, which will allow the Fund to focus its holdings.

*    Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

The Barclays Capital U.S. Credit Index comprises the Barclays Capital U.S. Corporate Index and a non-corporate component that includes foreign agencies, sovereigns, supranationals and local authorities. It is a subset of the Barclays Capital U.S. Government/Credit Index and Barclays Capital U.S. Aggregate Index.

Performance displayed represents past performance which is no guarantee of future results.

The returns do not reflect the effects of taxes.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^sm and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

ETF — Exchange Traded Fund.

Ten Largest Holdings
(% of Total Net Assets)
SPDR S&P 500 ETF Trust	7.5	%
Vanguard Emerging Markets ETF	5.0	%
iShares S&P Latin America 40 Index Fund	5.0	%
iShares S&P 500 Index Fund	4.7	%
iShares MSCI Emerging Markets Index Fund	4.4	%
SPDR Barclays Capital High Yield Bond ETF	4.2	%
iShares iBoxx $ High Yield Corporate Bond Fund	4.1	%
SPDR S&P MidCap 400 ETF Trust	3.5	%
Vanguard Total Stock Market ETF	3.3	%
Vanguard Large-Capital ETF	2.9	%
Top Ten Total	44.6	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

20 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(conducted)

Cumulative Fund Performance:
November 10, 2006 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

				SINCE
	ONE			INCEPTION
	YEAR			(11/10/06)
SELECT ALLOCATION FUND		13.75	%		1.36	%
S&P 500 INDEX		15.06	%		-0.09	%
SYNTHETIC BALANCED BENCHMARK*		12.64	%		2.38	%

*

Benchmark reflects a 75/25 ratio of the performance of the S&P 500 Index and the Barclays Capital U.S. Credit Index.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and Barclay’s Capital U.S. Credit Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 21

SCHEDULE OF INVESTMENTS	December 31, 2010
SELECT ALLOCATION FUND

	Shares		Value
COMMON STOCK† - 0.7%
FINANCIAL - 0.7%
Berkshire Hathaway, Inc. — Class B*		3,760	$	301,213
Total Common Stock
(Cost $218,659)				301,213
EXCHANGE TRADED FUNDS† - 88.1%
UNITED STATES OF AMERICA - 57.8%
SPDR S&P 500 ETF Trust		25,100		3,157,078
iShares S&P 500 Index Fund		15,500		1,956,875
SPDR Barclays Capital High Yield Bond ETF		44,400		1,763,124
iShares iBoxx $ High Yield Corporate Bond Fund		18,900		1,706,481
SPDR S&P MidCap 400 ETF Trust		8,800		1,449,184
Vanguard Total Stock Market ETF		21,300		1,383,009
Vanguard Large-Capital ETF		21,400		1,232,854
Vanguard Mid-Capital ETF		15,700		1,169,022
Vanguard Small-Capital ETF		12,800		929,664
iShares Barclays Credit Bond Fund		8,700		905,931
Vanguard Extended Market ETF		15,700		854,237
iShares Russell 1000 Growth Index Fund		14,500		830,270
Powershares QQQ		14,900		811,603
Vanguard Growth ETF		12,100		743,182
iShares Russell 2000 Index Fund		8,300		649,309
SPDR Dow Jones Industrial Average ETF Trust		5,500		635,800
SPDR S&P Biotech ETF		8,200		517,256
Vanguard Value ETF		8,400		447,972
iShares Russell Midcap Index Fund		4,400		447,700
iShares iBoxx Investment Grade Corporate Bond Fund		3,900		422,916
RevenueShares Large Capital ETF		17,100		404,244
iShares S&P MidCap 400 Index Fund		4,400		399,036
Consumer Staples Select Sector SPDR Fund		10,600		310,686
PowerShares DB Base Metals Fund		11,800		288,274
Energy Select Sector SPDR Fund		4,100		279,825
Technology Select Sector SPDR Fund		10,200		256,836
Materials Select Sector SPDR Fund		4,000		154,000
Industrial Select Sector SPDR Fund		4,100		143,090
iShares Barclays Intermediate Credit Bond Fund		200		21,036
Vanguard Total Bond Market ETF		200		16,054
Vanguard Intermediate-Term Corporate Bond ETF		200		15,740
SPDR Barclays Capital Intermediate Term Corporate Bond ETF		200		6,512
Total United States of America				24,308,800
INTERNATIONAL - 11.1%
Vanguard Emerging Markets ETF		44,000		2,118,600
iShares MSCI Emerging Markets Index Fund		38,800		1,847,656
SPDR S&P BRIC 40 ETF		20,600		565,058
SPDR S&P Emerging Markets Small Capital ETF		2,300		131,123
Total International				4,662,437
LATIN AMERICAN REGION - 5.0%
iShares S&P Latin America 40 Index Fund		38,800		2,089,768
ASIA - 3.7%
SPDR S&P China ETF		10,900		830,362
iShares FTSE China 25 Index Fund		10,900		469,681
iShares S&P Asia 50 Index Fund		5,600		262,899
Total Asia				1,562,942
GLOBAL - 3.0%
iShares S&P Global Materials Sector Index Fund		5,400		395,550
Market Vectors — Coal ETF		7,000		330,680
iShares S&P Global Energy Sector Index Fund		7,300		285,138
iShares S&P Global Industrials Sector Index Fund		4,100		220,798
Vanguard Short-Term Bond ETF		200		16,092
Total Global				1,248,258
ASIAN PACIFIC REGION EX-JAPAN - 2.7%
iShares MSCI Pacific ex-Japan Index Fund		19,000		892,620
iShares MSCI All Country Asia ex-Japan Index Fund		4,000		254,800
Total Asian Pacific Region ex-Japan				1,147,420
ASIAN PACIFIC REGION - 2.0%
SPDR S&P Emerging Asia Pacific ETF		7,400		627,150
Vanguard Pacific ETF		4,000		228,160
Total Asian Pacific Region				855,310
CANADA -1.5%
iShares MSCI Canada Index Fund		19,700		610,700
BRAZIL - 1.0%
iShares MSCI Brazil Index Fund		5,500		425,700
EUROPE - 0.2%
Vanguard European ETF		2,000		98,180
Total Exchange Traded Funds
(Cost $32,841,373)				37,009,515

22 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
SELECT ALLOCATION FUND

	Shares		Value
MUTUAL FUND† - 0.5%
First American Treasury Obligations Fund		194,858	$	194,858
Total Mutual Fund
(Cost $194,858)				194,858
		Face
	Amount
CORPORATE BONDS†† - 10.3%
FINANCIAL INSTITUTIONS - 2.5%
Mutual of Omaha Insurance Co. 6.80% due 06/15/361,2	$	460,000		435,067
HSBC Finance Corp. 7.00% due 05/15/12		310,000		332,613
Goldman Sachs Group, Inc. 5.95% due 01/15/27		310,000		297,336
				1,065,016
MATERIALS - 2.3%
Alcoa, Inc.
5.87% due 02/23/22		626,000		621,914
6.75% due 07/15/18		257,000		280,025
Freeport-McMoRan Copper & Gold, Inc.
8.38% due 04/01/17		45,000		49,781
				951,720
INDUSTRIAL - 1.7%
Chevron Phillips Chemical Company LLC 8.25% due 06/15/191,2		352,000		424,587
Bunge Limited Finance Corp. 8.50% due 06/15/19		235,000		275,544
				700,131
CONSUMER DISCRETIONARY - 1.6%
Nordstrom, Inc. 7.00% due 01/15/38	$	593,000		671,818
HEALTH CARE - 1.0%
Agilent Technologies, Inc. 6.50% due 11/01/17		368,000		407,873
INFORMATION TECHNOLOGY - 0. 7%
Corning, Inc. 7.25% due 08/15/36		270,000		307,266
ENERGY - 0.5%
Sunoco, Inc. 4.88% due 10/15/14		216,000		225,122
Total Corporate Bonds
(Cost $3,602,687)				4,328,946
U.S. GOVERNMENT SECURITIES† - 0.4%
U.S. Treasury Notes
1.00% due 10/31/11		50,000		50,293
0.88% due 02/29/12		50,000		50,291
0.75% due 11/30/11		50,000		50,197
Total U.S. Government Securities
(Cost $150,233)				150,781
Total Investments - 99.9%
(Cost $37,007,810)			$	41,985,313
Other Assets, Less Liabilities - 0.1%				42,212
Total Net Assets - 100.0%			$	42,027,525

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 5.
††	Value determined based on Level 2 inputs — See Note 5.
1	Security was acquired through a private placement.
2	Security is a 144A or Section 4(2) security. The total market value of 144A or Section 4(2) securities is $859,654 (cost $762,753), or 2.0% of total net assets.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 23

SELECT ALLOCATION FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	41,985,313
Total investments		41,985,313
Receivables:
Dividends		84,388
Interest		70,260
Total assets		42,139,961
Liabilities:
Payable for:
Fund shares redeemed		14,591
Management fees		32,094
Custodian fees		1,177
Transfer agent/maintenance fees		8,915
Investor service fees		8,915
Portfolio accounting fees		3,566
Other		43,178
Total liabilities		112,436
Net assets	$	42,027,525
Net assets consist of:
Paid in capital	$	48,148,199
Undistributed net investment income		294,393
Accumulated net realized loss on investments		(11,392,570	)
Net unrealized appreciation on investments		4,977,503
Net assets	$	42,027,525
Capital shares outstanding		1,756,584
Net asset value per share	$	23.93
Investments, at cost	$	37,007,810

STATEMENT OF OPERATIONS
Year Ended December 31, 2010

Investment Income:
Dividends	$	948,558
Interest		293,783
Total investment income		1,242,341
Expenses :
Management fees		371,393
Transfer agent and administrative fees		103,165
Investor service fees		103,165
Portfolio accounting fees		41,265
Trustees’ fees*		4,910
Miscellaneous		79,467
Total expenses		703,365
Net investment income		538,976
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		1,237,996
Realized gain distributions from other investment companies		34,927
Net realized gain		1,272,923
Net change in unrealized appreciation (depreciation) on:
Investments		3,456,806
Net change in unrealized appreciation (depreciation)		3,456,806
Net realized and unrealized gain		4,729,729
Net increase in net assets resulting from operations	$	5,268,705

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

24 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SELECT ALLOCATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	538,976		$	716,733
Net realized gain (loss) on investments		1,272,923			(7,403,723	)
Net change in unrealized appreciation (depreciation) on investments		3,456,806			19,431,125
Net increase in net assets resulting from operations		5,268,705			12,744,135
Distributions to shareholders from:
Net investment income		(699,942	)		(961,298	)
Total distributions to shareholders		(699,942	)		(961,298	)
Capital share transactions :
Proceeds from sale of shares		8,982,102			7,839,991
Distributions reinvested		699,942			961,298
Cost of shares redeemed		(15,765,460	)		(20,458,393	)
Net decrease from capital share transactions		(6,083,416	)		(11,657,104	)
Net increase (decrease) in net assets		(1,514,653	)		125,733
Net assets:
Beginning of year		43,542,178			43,416,445
End of year	$	42,027,525		$	43,542,178
Undistributed net investment income at end of year	$	294,393		$	815,264
Capital share activity :
Shares sold		408,680			443,218
Shares issued from reinvestment of distributions		30,327			45,131
Shares redeemed		(717,667	)		(1,147,350	)
Net decrease in shares		(278,660	)		(659,001	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 25

SELECT ALLOCATION FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006		a
Per Share Data
Net asset value, beginning of period	$	21.39		$	16.11		$	28.98		$	25.55		$	25.00
Income (loss) from investment operations:
Net investment incomeb		.28			.31			.32			.34			.40
Net gain (loss) on investments (realized and unrealized)		2.66			5.45			(12.56	)		3.48			.34
Total from investment operations		2.94			5.76			(12.24	)		3.82			.74
Less distributions from:
Net investment income		(.40	)		(.48	)		(.31	)		—			(.19	)
Net realized gains		—			—			(.32	)		(.39	)		—
Total distributions		(.40	)		(.48	)		(.63	)		(.39	)		(.19	)
Net asset value, end of period	$	23.93		$	21.39		$	16.11		$	28.98		$	25.55
Total Returnc		13.75	%		35.79	%		(42.14	%)		14.91	%		2.96	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	42,028		$	43,542		$	43,391		$	84,921		$	19,989
Ratios to average net assets:
Net investment income		1.31	%		1.70	%		1.32	%		1.22	%		10.65	%d
Total expensese		1.70	%		1.71	%		1.66	%		1.62	%		1.63	%d
Portfolio turnover rate		61	%		131	%		120	%		171	%		13	%

a	Since the commencement of operations: November 10, 2006.
b	Net investment income per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
d	Ratios for the period ended December 31, 2006 were calculated for an abbreviated time frame and are not indicative of future class performance, and are annualized.
e	Does not include expenses of the underlying funds in which the Fund invests.

26 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies

Organization

The Rydex Variable Trust (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company and is authorized to issue an unlimited number of shares (no par value). The Trust offers shares of the funds to insurance companies for their variable annuity and variable life insurance contracts.

At December 31, 2010, the Trust consisted of fifty-eight separate funds. This report covers the CLS AdvisorOne Funds (the “Funds”), while the other funds are contained in separate reports.

Each Fund invests primarily in Exchange Traded Funds (“ETFs”) (“underlying funds”), acting similar to a “fund of funds”. The Funds seek to achieve their investment objectives by investing in underlying funds, in conjunction with a sparse amount of additional securities.

Security Global Investors (“SGI”) provides advisory services and Rydex Fund Services, LLC (“RFS”) provides transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (“RDL”) acts as principal underwriter for the Trust. SGI, RFS and RDL are affiliated entities.

CLS Investments, LLC serves as investment sub-advisor (the “Sub-Advisor”) to the Funds and is responsible for the day-to-day management of each Fund’s portfolio.

Significant Accounting Policies

The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

A. Open-ended investment companies (“Mutual Funds”) are valued at their Net Asset Value (the “NAV”) as of the close of business, usually 4:00 p.m. Eastern Time on the valuation date. ETFs and closed-end investment companies (“closed-end funds”) are valued at the last quoted sales price.

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. (Eastern Time) on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date. Debt securities with a maturity greater than 60 days at the time of purchase, are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a debt security is valued at the reported bid price, at the close of business. Short-term debt securities, with a maturity of 60 days or less at the time of purchase, if any, are valued at amortized cost, which approximates market value.

Investments for which market quotations are not readily available are fair valued as determined in good faith by SGI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related markets.

B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in funds are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.

E. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments

The Funds are subject to a fund of funds risk. By investing in the underlying funds indirectly through the Fund, an investor will incur not only a proportionate share of the expenses of the underlying funds held by the Fund (including operating costs and management fees), but also

the RYDEX|SGI variable trust annual report | 27

NOTES TO FINANCIAL STATEMENTS (continued)

expenses of the Fund. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying funds.

The Funds invest to a significant extent in shares of ETFs to gain exposure to their investment objectives. ETFs are pooled investment vehicles, which may be managed or unmanaged, that generally seek to track the performance of a specific index. Although individual shares of an ETF are traded on an exchange (such as the NYSE, AMEX, or NASDAQ), large blocks of shares of ETFs are redeemable at net asset value. This ability to redeem large blocks of shares has historically resulted in the market price of individual shares of ETFs being at or near the net asset value of the ETF’s underlying investments. However, shares of ETFs may trade below their NAV. The NAV of shares will fluctuate with changes in the market value of the ETF’s holdings. The trading prices of shares will fluctuate in accordance with changes in NAV as well as market supply and demand. The difference between the bid price and ask price, commonly referred to as the “spread,” will also vary for an ETF depending on the ETF’s trading volume and market liquidity. Generally, the greater the trading volume and market liquidity, the smaller the spread is and vice versa. Any of these factors may lead to an ETF’s shares trading at a premium or a discount to NAV. The Funds, from time to time, may invest in ETFs that are not registered pursuant to the Investment Company Act of 1940. Such ETFs may include commodity pools that are registered pursuant to the Securities Act of 1933 and the Commodity Exchange Act.

3. Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays SGI investment advisory fees calculated at an annual percentage rate of 0.90% of the average daily net assets of each Fund.

SGI pays the Sub-Advisor out of the advisory fees it receives. In addition, SGI bears all of its own costs associated with providing these services and the expenses of the Trustees that are affiliated with SGI. SGI may make payments from its own resources to broker-dealers and other financial institutions in connection with the sale of Fund shares.

Each Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other expenses) of the underlying funds in which the Fund invests.

RFS provides transfer agent and administrative services to the Funds calculated at an annual percentage rate of 0.25% of the average daily net assets of each Fund.

RFS also provides accounting services to the Funds calculated at an annualized rate of 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each of the Funds.

RFS engages external service providers to perform other necessary services for the Trust, such as auditing services, legal services, printing and mailing, etc., on a pass-through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets.

The Trust has adopted an Investor Services Plan for which RDL and other firms that provide investor services (“Service Providers”) may receive compensation. The Funds will pay investor service fees at an annual rate not to exceed 0.25% of average daily net assets. RDL, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

The Board approved the use of a Distribution Plan for which RDL and other Service Providers may receive compensation. If a Service Provider provides distribution services, the Trust will pay distribution fees to RDL at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. RDL, in turn, will pay the Service Provider out of its fees. RDL may, at its discretion, retain a portion of such payments to compensate itself for distribution services. Although approved, for the year ended December 31, 2010, this plan was not utilized.

Certain officers and trustees of the Trust are also officers of SGI, RFS and RDL.

4. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (fiscal years 2007 — 2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales.

28 the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

Permanent book and tax basis differences, if any, will result in reclassifications. This may include net operating losses not utilized during the current period and capital loss carryforward expired or permanently lost due to limitations in the Internal Revenue Code. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended December 31, 2010, the following capital loss carryforward amounts expired, were used, or were permanently lost due to loss limitation rules in Section 382 of the Internal Revenue Code:

Fund	Amount
Amerigo Fund	$	5,494,067
Clermont Fund		1,161,544
Select Allocation Fund		7,355,252

The tax character of distributions paid during 2010 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Amerigo Fund	$	179,331	$	—	$	179,331
Clermont Fund		1,293,571		—		1,293,571
Select Allocation Fund		699,942		—		699,942

The tax character of distributions paid during 2009 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Amerigo Fund	$	1,134,816	$	—	$	1,134,816
Clermont Fund		1,340,021		—		1,340,021
Select Allocation Fund		961,298		—		961,298

The tax character of distributable earnings/(accumulated losses) at December 31, 2010, was as follows:

	Undistributed		Undistributed
	Ordinary		Long-Term		Net Unrealized		Capital Loss
Fund	Income		Capital Gain		Appreciation		Carryforward1
Amerigo Fund	$	—	$	—	$	27,652,510	$	(46,855,626	)
Clermont Fund		1,402,949		—		7,078,766		(8,978,190	)
Select Allocation Fund		557,737		—		4,580,803		(11,259,214	)

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

¹   A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows:

							Total
	Expires in			Expires in			Capital Loss
Fund	2016			2017			Carryforward
Amerigo Fund	$	(27,406,286	)	$	(19,449,340	)	$	(46,855,626	)
Clermont Fund		(5,977,001	)		(3,001,189	)		(8,978,190	)
Select Allocation Fund		(6,169,000	)		(5,090,214	)		(11,259,214	)

At December 31, 2010, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

								Net Unrealized
Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Gain
Amerigo Fund	$	172,160,956	$	28,262,087	$	(609,577	)	$	27,652,510
Clermont Fund		66,843,607		7,592,411		(513,645	)		7,078,766
Select Allocation Fund		37,404,510		4,999,924		(419,121	)		4,580,803

5. Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect

the RYDEX|SGI variable trust annual report | 29

NOTES TO FINANCIAL STATEMENTS (continued)

the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical investments.

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2010:

	Level 1		Level 2
	Investments		Investments
Fund	In Securities		In Securities		Total
Assets
Amerigo Fund	$	199,813,466	$	—	$	199,813,466
Clermont Fund		68,297,770		5,624,603		73,922,373
Select Allocation Fund		37,656,367		4,328,946		41,985,313

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective January 1, 2010. This update applies to the Funds’ disclosures about transfers in and out of all Levels of the fair value hierarchy on a gross basis and the reasons for the transfers, as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 of the fair value hierarchy. Effective for interim and annual periods beginning after December 15, 2010, purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.

For the year ended December 31, 2010, there were no significant transfers between Levels.

6. Securities Transactions

During the year ended December 31, 2010, purchases and sales of investment securities, excluding government securities and short-term investments, were:

	Amerigo		Clermont		Select Allocation
	Fund		Fund		Fund
Purchases	$	149,417,668	$	47,678,384	$	24,904,391
Sales	$	189,977,163	$	47,231,306	$	31,303,180

During the year ended December 31, 2010, purchases and sales of government securities, excluding short-term government and temporary cash investments, were:

	Amerigo		Clermont		Select Allocation
	Fund		Fund		Fund
Purchases	$	—	$	601,820	$	150,217
Sales	$	—	$	—	$	—

7. Name Change

Effective May 3, 2010, the Berolina Fund changed its Fund name to the Select Allocation Fund. The name change did not have any impact on the Fund’s investment objectives or CUSIP.

8. Line of Credit

The Trust has secured an uncommitted $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33⅓% of a Fund’s net assets, 33⅓% of a Fund’s assets held by the Custodian or 33⅓% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. As of and for the year ended December 31, 2010, the Funds did not have any outstanding borrowings under this agreement.

30 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (concluded)

9. Acquisition of Security Benefit Corporation

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors II, LLC (formerly PADCO Advisors II, Inc.), the Funds’ investment advisor (the “Investment Advisor”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Advisor (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction did not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company At of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreement with the Investment Advisor and any investment sub-advisory agreements entered on behalf of a Fund (together, the “Previous Agreements”). New investment advisory and sub-advisory agreements (“New Agreements”) were approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreements are substantially identical to the corresponding Previous Agreements, except with respect to the date of execution.

10. Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ Distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

11. Subsequent Events

Effective January 3, 2011, Rydex Advisors II, LLC, the Funds’ investment advisor was merged with and into Security Investors, LLC, which will operate under the name SGI.

The foregoing internal restructuring is not expected to affect the investment advisory services rendered to the Funds, which will continue to be managed on a day-to-day basis by the same teams of portfolio managers. The investment philosophies, strategies, and processes of the Funds also will remain the same.

In order to implement the restructuring, technical amendments were made to the Funds’ investment advisory agreement with Rydex Advisors II, LLC, in order to reflect the change of the identity of the investment advisor. No other changes will be made to the investment advisory agreement of the Funds, and the fees and expenses of the Funds will remain the same.

the RYDEX|SGI variable trust annual report | 31

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
of Rydex Variable Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Amerigo Fund, Clermont Fund and Select Allocation Fund (formerly Berolina Fund) (three of the series constituting the Rydex Variable Trust) (the “Funds”) as of December 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 25, 2008 expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds at December 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 24, 2011

32 | the RYDEX|SGI variable trust annual report

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended December 31 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Change of Address

Effective January 17, 2011, the RYDEX SGI office was moved to Four Irvington Centre, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

SGI Board Review and Approval of the Investment Advisory Agreements

At an in-person meeting of the Trust’s Board of Trustees held on January 28, 2010, called for the purpose of, among other things, voting on the approval of the investment advisory and sub-advisory agreements applicable to the series of the Trust (the “Funds”), the Trust’s Board of Trustees, including the Independent Trustees, unanimously approved the continuation for a two-year period the investment advisory agreements between the Trust and Rydex Advisors II, LLC (formerly, PADCO Advisors II, Inc., and referred to herein as “Rydex”). In reaching this conclusion, the Trustees requested and obtained from Rydex and each investment sub-adviser such information as the Trustees deemed reasonably necessary to evaluate the proposed renewal of the agreements. The Trustees carefully evaluated this information and were advised by legal counsel with respect to their deliberations.

In considering the approval of the investment advisory and sub-advisory agreements, the Independent Trustees evaluated a number of considerations, including, among others, (1) the nature, extent, and quality of the advisory services to be provided by Rydex; (2) the investment performance of the Funds and Rydex; (3) the costs of services provided by Rydex and the profits derived by Rydex from its relationship with the Funds; (4) a comparison of each Funds’ expense ratios and those of similarly situated funds; (5) benefits (such as soft dollars) to Rydex and its affiliates from their relationship with the Funds (and any corresponding benefits to the Funds); (6) other factors the Board deemed to be relevant. The Board also took into account other considerations that it believed, in light of the legal advice furnished to the Independent Trustees by their independent legal counsel and the Trustees’ own business judgment, to be relevant. Following its review, the Trust’s Board determined that the investment advisory agreement will enable Fund shareholders to obtain high quality services at a cost that is appropriate, reasonable and in the best interests of shareholders. Accordingly, the Trustees, including the Independent Trustees, unanimously approved the renewal of the investment advisory agreements based upon the following considerations, among others:

• The nature, extent and quality of the advisory services to be provided. The Board of Trustees concluded that Rydex is capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided in the past, Rydex’s management capabilities demonstrated with respect to the Funds and other mutual funds managed by Rydex, the professional qualifications and experience of Rydex and Rydex’s investment and management oversight processes. The Trustees also determined that Rydex proposed to provide investment and related services that were of the same quality and quantity as services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Fund. With respect to the Funds, the Trustees concluded on the basis of information compiled by Morningstar that Rydex and the investment sub-advisers had achieved investment performance that was acceptable, and competitive or superior relative to comparable funds over trailing periods.

the RYDEX|SGI variable trust annual report | 33

OTHER INFORMATION (Unaudited) (concluded)

• The cost of advisory services provided and the level of profitability. On the basis of the Board’s review of the fees to be charged by Rydex for investment advisory and other services, and the estimated profitability of Rydex’s relationship with the Funds, the Board concluded that the level of investment advisory fees and Rydex’s profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and Rydex and its affiliates. On the basis of comparative information compiled by Morningstar, the Trustees determined that the advisory fees and estimated overall expense ratio of each Fund are consistent with, and often below, industry medians, particularly with respect to mutual funds of comparable size.

• Whether the advisory fees reflect economies of scale. The Trustees concluded that the Funds’ investment advisory fees appropriately reflect the current economic environment for Rydex and the competitive nature of the mutual fund market.

• The extent to which economies of scale will be realized as the Fond grows. While the Funds’ investment advisory fees do not reduce should fund assets grow meaningfully, the Trustees determined that the investment advisory fees payable by the funds already reflect potential future economies of scale to some extent by virtue of their competitive levels (determined with reference to industry standards as reported by Lipper) and Rydex’s estimated profitability at current or foreseeable asset levels. The Trustees also considered that they will have the opportunity to periodically re-examine whether each Fund has achieved economies of scale, and the appropriateness of investment advisory fees payable to Rydex in the future.

34 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of SGI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

All Trustees and Officers may be reached c/o Security Global Investors, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret Trustee, Chairman of the Board (1940)	Rydex Series Funds — 1997 Rydex Variable Trust — 1998 Rydex Dynamic Funds — 1999		150
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour Trustee (1945)	Rydex Series Funds — 1993 Rydex Variable Trust — 1998		150
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton Trustee (1941)	Rydex Series Funds — 1995 Rydex Variable Trust — 1998		150
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group
Werner E. Keller Trustee (1940)	Rydex Series Funds — 2005 Rydex Variable Trust — 2005		150
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr. Trustee (1960)	Rydex Series Funds — 2005 Rydex Variable Trust — 2005		150
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville Trustee (1942)	Rydex Series Funds — 1997 Rydex Variable Trust — 1998		150
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers Trustee (1944)	Rydex Series Funds — 1993 Rydex Variable Trust — 1998		150
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

the RYDEX|SGI variable trust annual report | 35

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P Byrum* Vice President (1970)	Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nikolaos Bonos* Vice President and Treasurer (1963)	Senior Vice President, Security Investors, LLC and Vice President, Security Benefit Asset Management Holdings, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011). Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney Catalucci* Chief Compliance Officer and Secretary (1966)	Vice President, Security Benefit Asset Management Holdings, LLC; and Senior Vice President and Chief Compliance Officer, Security Investors, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present); Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)

36 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

EXECUTIVE OFFICERS (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Vice President, Security Investors, LLC (2010 to present); Vice President, Security Global Investors, LLC (2010 to 2011); Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration Rydex Investments (2001 to present)

* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments.

the RYDEX|SGI variable trust annual report | 37

805 King Farm Boulevard, Suite 600
Rockville, MD 20850
www.rydex-sgi.com
800.820.0888
RVAAO-2-1210x1211

DECEMBER 31. 2010RYDEX VARIABLE TRUST ANNUAL REPORT ALTERNATIVES FUNDS U.S. LONG SHORT MOMENTUM FUND (Formerly, All-Cap Opportunity Fund) INTERNATIONAL LONG SHORT SELECT FUND (Formerly, International Opportunity Fund) ALTERNATIVE STRATEGIES ALLOCATION FUND MANAGED FUTURES STRATEGY FUND MULTI-HEDGE STRATEGIES FUND COMMODITIES STRATEGY FUND

This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

Distributed by Rydex Distributors, LLC.

TABLE OF CONTENTS
LETTER TO OUR SHAREHOLDERS	2
ABOUT SHAREHOLDERS’ FUND EXPENSES	4
U.S. LONG SHORT MOMENTUM FUND	6
INTERNATIONAL LONG SHORT SELECT FUND	14
ALTERNATIVE STRATEGIES ALLOCATION FUND	22
MANAGED FUTURES STRATEGY FUND	28
MULTI-HEDGE STRATEGIES FUND	36
COMMODITIES STRATEGY FUND	52
NOTES TO FINANCIAL STATEMENTS	58
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	68
OTHER INFORMATION	69
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	71

the RYDEX|SGI variable trust annual report | 1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

The U.S. economy continued a second year of recovery in 2010, but soft employment and housing markets combined to keep growth tepid. The consensus forecast for U.S. GDP growth was 2.8%, but a consumer spending rally may be needed for it to do better in 2011. Along with better economic reports on retail sales and jobless claims late in 2010, passage of federal legislation to extend Bush-era tax cuts and roll out new stimulus measures boosted equity markets, and prompted many economists to raise growth forecasts for 2011 to 3.5% or higher. Markets were also affected by a change in control of the House of Representatives and a renewed focus on cutting government spending and dealing with the budget deficit.

The U.S. Federal Reserve was responsible for much of the investor optimism that flowed through 2010, slowed only at mid-year by debt problems in Europe and the fading effects of U.S. government stimulus spending that played into fears of a double-dip recession. Concerns that the economy was not growing fast enough to lower an unemployment rate seemingly stuck at more than 9% led the U.S. central bank to signal in August that it would embark on a second round of bond buying in an attempt to keep long-term rates low enough to entice borrowers and spur economic activity. Although critics said such quantitative easing could flame inflation or lead to another asset bubble, the expectation of up to $600 billion in purchases corresponded with a third-quarter stock-market rally, which picked up more steam after the purchases actually began in November. Inflation turned out to be tame in 2010, with prices rising just 1.1%.

Government efforts to support the economy were a plug for stocks in 2010, as markets were carried to highs last seen more than two years ago—just before the collapse of Lehman Brothers. U.S. equity markets were up by double digits in 2010. The NASDAQ Composite Index* led major indices, up 17%, while the Dow Jones Industrial Average Index* and S&P 500^® Index* were up 14% and 15%, respectively. The sweet spot was small cap stocks, often a leader in economic recoveries, and the Russell 2000^® Index* was up 27%. Stocks in the consumer discretionary and industrials sectors, which benefited from exposure to awakening consumers as well as emerging markets and commodities, were up the most, 26% and 23% respectively, while the health care sector provided the weakest return at less than 1%.

Markets around the globe also benefited from the flood of cash unleashed by the U.S. Federal Reserve. Those in many European countries rose despite sovereign debt problems, with the broad STOXX Europe 600 Index* finishing up 9%. Strong economic recovery in Asia benefited markets from Indonesia to South Korea, although the region’s two largest economies, Japan and China, finished the year lower.

Yield-hungry fixed-income investors increasingly took on credit risk over the year, which was reflected in good performance across most sectors. Expectations about too-fast economic growth and possibly a tick up in inflation in the next few quarters prompted a late-year selloff in Treasuries. Although the Fed kept interest rates on hold all year, the yield on Treasuries rose, affecting mortgage rates, which unfortunately came at a time when reports were indicating that house prices continue to fall and a glut of foreclosures may hit the market over the next few years. Still, Treasuries performed well over the year, as fears of a double-dip recession and European debt woes eased. Among the best returns for the year: bonds in the U.S. intermediate high yield space and emerging market bonds. The Barclays Capital U.S. Aggregate Bond Index* returned about 6.5%.

Driven by demand from China and other fast-growing countries, commodities performed strongly in 2010, as investors appeared to be either encouraged by global recovery or worried about inflation. The Dow Jones-UBS Commodity Index* was up almost 17%; indicative of the strength of the raw materials rally was a record high price for copper and gold. While the metals and agriculture sub-indices were higher over the year, the energy index was lower. Oil finished 2010 around $91, rising about 15%.

The dollar gained on the euro in 2010, reflecting concern about Europe’s crisis in sovereign debt. The dollar weakened against many other currency counterparts around the world, falling most against the yen, as investors coped with record-low rates by searching for higher-yielding assets.

Many economists are calling for recovery to continue in 2011. Some feel there is a chance the economy could overheat, based on continued Fed intervention, causing a spike in interest rates, choking off recovery. Others

2 | the RYDEX|SGI variable trust annual report

LETTER TO OUR SHAREHOLDERS (concluded)

view high levels of government and consumer debt as weights that could restrain the expansion, with growth insufficient to bring down unemployment. U.S. consumers are vital to a robust global recovery and their improving household incomes and debt burdens, along with rising global profits, should benefit many global regions. Stronger performance is forecast for emerging markets compared with developed economies, which are still shoring up their finances. In the fixed income market, strong corporate balance sheets and a low default rate should combine to further compress spreads, and position credit to outperform government paper in the year ahead.

Whether helping hedge or augment exposures to the equity or fixed-income markets, or introducing alternative assets and strategies to portfolios for overall diversification¹, our products are designed for a range of investment scenarios. Rydex|SGI is pleased to help investors navigate uncertain markets, and we appreciate the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

1  Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

*  Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

NASDAQ Composite Index — a capitalization-weighted index of more than 3,000 companies listed on the NASDAQ Stock Market.

The Dow Jones Industrial Average Index (DJIA) — a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

The Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large-, mid- and small-capitalization companies across 18 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The U.S. Aggregate rolls up into other Barclays Capital flagship indices such as the multi-currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt.

The Dow Jones-UBS Commodity Index aims to provide broadly diversified representation of commodity markets as an asset class. The index is made up of exchange-traded futures on physical commodities. The index represents 19 commodities, which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

the RYDEX|SGI variable trust annual report | 3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2010 and ending December 31, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

4 | the RYDEX|SGI variable trust annual report

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (conducted)

							Beginning		Ending		Expenses
	Expense			Fund			Account Value		Account Value		Paid During
	Ratio1,4			Return			June 30, 2010		December 31, 2010		Period2
Table 1. Based on actual Fund return3
U.S. Long Short Momentum Fund		1.76	%		21.44	%	$	1,000.00	$	1,214.42	$	9.82
International Long Short Select Fund		4.14	%		20.25	%		1,000.00		1,202.50		22.98
Alternative Strategies Allocation Fund		0.00	%†		4.82	%		1,000.00		1,048.16		—
Managed Futures Strategy Fund		2.14	%		1.91	%		1,000.00		1,019.13		10.89
Multi-Hedge Strategies Fund		4.82	%		7.85	%		1,000.00		1,078.48		25.25
Commodities Strategy Fund		1.65	%		22.99	%		1,000.00		1,229.86		9.27
Table 2. Based on hypothetical 5% return (before expenses)
U.S. Long Short Momentum Fund		1.76	%		5.00	%	$	1,000.00	$	1,016.33	$	8.94
International Long Short Select Fund		4.14	%		5.00	%		1,000.00		1,004.34		20.92
Alternative Strategies Allocation Fund		0.00	%†		5.00	%		1,000.00		1,025.21		—
Managed Futures Strategy Fund		2.14	%		5.00	%		1,000.00		1,014.42		10.87
Multi-Hedge Strategies Fund		4.82	%		5.00	%		1,000.00		1,000.91		24.31
Commodities Strategy Fund		1.65	%		5.00	%		1,000.00		1,016.89		8.39

†	Excludes expenses of the underlying funds in which the Fund invests. 1
1	Annualized.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.
3	Actual cumulative return at net asset value for the period June 30, 2010 to December 31, 2010.
4	This ratio represents annualized Total Expenses which includes dividend and interest expense related to securities sold short. Excluding short dividend expense and prime broker interest expense, the operating expense ratio would be .01% lower in U.S. Long Short Momentum Fund, 1.90% lower in the International Long Short Select Fund and 3.64% lower in the Multi-Hedge Strategies Fund.

the RYDEX|SGI variable trust annual report | 5

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

U.S. LONG SHORT MOMENTUM FUND
(Formerly, All-Cap Opportunity Fund)

OBJECTIVE: Seeks long-term capital appreciation.

Inception: May 1, 2002

For the one-year period ended December 31, 2010, the Fund returned 11.21% as opposed to its benchmark, the Russell 3000^® Index, which ended the year up 16.93%. The performance differential for the Fund can be attributed to three major sources of relative returns: core momentum strategy, defensive hedge and transaction costs/fees.

After a difficult 2009, the performance of momentum strategies in 2010 was mixed. In contrast to 2009, 12-month momentum signals fared better than three-month signals. The former contributed positively to Fund return but was overwhelmed by losses from the shorter-term signal. The net effect was that the core momentum model trailed the Russell 3000 Index benchmark by -1.7%.

At the end of May, an active hedging model was introduced to the Fund based on the breadth of industry strength. This hedge utilizes S&P 500 Index equity futures to dial down the Fund’s equity exposure when a large number of industries have negative 12-month and three-month price momentum. This hedge was initiated at approximately 8% at the end of May, meaning that the Fund reduced its long equity exposure by 8% and introduced a short equity exposure with a notional value equal to 8% of AUM. The hedge consistently declined in value and ended the year at 3%. These are small hedge ratios relative to the amounts expected to be realized in a downward trending market. However, they did cost the Fund relative performance, as the Russell 3000 Index rallied 17.3% from the end of May through year end. In total, this hedge cost the Fund -2.4% of relative performance for the year.

For the year, transaction costs, which are estimated at 70 bps, were relatively low given the high turnover of the momentum strategy, which approximated 300% per side in 2010. Combined with management fees, these operational costs reduced Fund performance by -2.1% versus the Russell 3000 Index benchmark.

Within the Fund, large overweights of Internet & Catalog Retail and Auto Components contributed positively to benchmark relative return, with the two industry allocations generating alpha of 1.7% and 1.4%, respectively. The two biggest detractors from relative performance were allocations to Internet Software and Metals & Mining industries, which cost the Fund -1.1% and -1.0%, respectively.

Performance displayed represents past performance which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)
Amazon.com, Inc.	4.1	%
Brookfield Asset Management, Inc. — Class A	2.4	%
Priceline.com, Inc.	2.1	%
Schlumberger Ltd.	1.5	%
Brookfield Properties Corp.	1.5	%
NIKE, Inc. — Class B	1.5	%
Magna International, Inc. — Class A	1.5	%
Johnson Controls, Inc.	1.5	%
NetFlix, Inc.	1.4	%
CB Richard Ellis Group, Inc. — Class A	1.4	%
Top Ten Total	18.9	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

6 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)(concluded)

Cumulative Fund Performance
May 1, 2002 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/01/02)
U.S. LONG SHORT MOMENTUM FUND		11.21	%		2.78	%		4.43	%
S&P 500 INDEX		15.06	%		2.29	%		3.73	%
RUSSELL 3000 INDEX		16.93	%		2.74	%		4.38	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the Russell 3000 Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 7

SCHEDULE OF INVESTMENTS	December 31, 2010
U.S. LONG SHORT MOMENTUM FUND

	Shares		Value
COMMON STOCKS† - 98.2%
CONSUMER DISCRETIONARY - 38.7%
Amazon.com, Inc.*		12,829	$	2,309,220
Priceline.com, Inc.*		2,916		1,165,088
NIKE, Inc. — Class B		9,740		831,991
Magna International, Inc. — Class A		15,860		824,720
Johnson Controls, Inc.		21,460		819,772
NetFlix, Inc.*		4,534		796,624
Liberty Media Corporation - Interactive*		47,335		746,473
McDonald’s Corp.		8,890		682,396
Expedia, Inc.		24,083		604,242
Coach, Inc.		10,380		574,118
BorgWarner, Inc.*		6,950		502,902
Las Vegas Sands Corp.*		9,910		455,365
VF Corp.		5,210		448,998
Autoliv, Inc.		5,550		438,117
TRW Automotive Holdings Corp.*		8,110		427,397
Carnival Corp.		9,230		425,595
Polo Ralph Lauren Corp. — Class A		3,500		388,220
Lear Corporation*		3,920		386,943
Gentex Corp.		13,010		384,576
Starbucks Corp.		11,910		382,668
Yum! Brands, Inc.		7,340		360,027
HSN, Inc.*		10,870		333,057
Fossil, Inc.*		4,460		314,341
Marriott International, Inc. — Class A		7,400		307,396
Goodyear Tire & Rubber Co.*		24,890		294,947
Royal Caribbean Cruises Ltd.*		6,200		291,400
Phillips-Van Heusen Corp.		4,560		287,326
Tenneco, Inc.*		6,690		275,360
Dana Holding Corp.*		15,540		267,443
Starwood Hotels & Resorts Worldwide, Inc.		4,400		267,432
Wynn Resorts Ltd.		2,530		262,715
Deckers Outdoor Corp.*		3,220		256,763
Blue Nile, Inc.*		4,368		249,238
Shutterfly, Inc.*		7,086		248,223
Federal-Mogul Corp.*		11,950		246,768
Warnaco Group, Inc.*		4,230		232,946
MGM Resorts International*		15,140		224,829
Columbia Sportswear Co.		3,600		217,080
Hanesbrands, Inc.*		8,480		215,392
Under Armour, Inc. — Class A*		3,760		206,198
Cooper Tire & Rubber Co.		8,520		200,902
Chipotle Mexican Grill, Inc.*		940		199,900
Darden Restaurants, Inc.		4,080		189,475
NutriSystem, Inc.		8,876		186,662
International Game Technology		10,470		185,214
Wolverine World Wide, Inc.		5,780		184,266
Carter’s, Inc.*		6,160		181,782
Wyndham Worldwide Corp.		5,950		178,262
CROCS, Inc.*		10,200		174,624
Iconix Brand Group, Inc.*		9,040		174,562
American Axle & Manufacturing Holdings, Inc.*		13,350		171,681
Overstock.com, Inc.*		9,987		164,586
PetMed Express, Inc.		9,241		164,582
Modine Manufacturing Co.*		9,170		142,135
Panera Bread Co. — Class A*		1,370		138,658
Fuel Systems Solutions, Inc.*		3,690		108,412
Vitacost.com, Inc.*,†††,1		15,999		8,000
Total Consumer Discretionary				21,708,009
INDUSTRIALS - 34.4%
WW Grainger, Inc.		5,480		756,843
Fastenal Co.		12,340		739,289
Caterpillar, Inc.		6,860		642,508
Fluor Corp.		7,410		490,987
Deere & Co.		5,770		479,198
Danaher Corp.		9,730		458,964
Masco Corp.		35,790		453,101
Illinois Tool Works, Inc.		7,980		426,132
Owens Corning*		13,450		418,967
MSC Industrial Direct Co. — Class A		6,380		412,722
Cummins, Inc.		3,580		393,836
PACCAR, Inc.		6,480		372,082
WESCO International, Inc.*		6,980		368,544
Lennox International, Inc.		7,130		337,178
Armstrong World Industries, Inc.		7,840		337,120
Eaton Corp.		3,280		332,953
Ingersoll-Rand plc		7,020		330,572
Jacobs Engineering Group, Inc.*		6,945		318,428
Watsco, Inc.		5,020		316,662
GATX Corp.		8,770		309,406
KBR, Inc.		10,060		306,528
Parker Hannifin Corp.		3,480		300,324
Quanta Services, Inc.*		14,790		294,617
United Rentals, Inc.*		12,870		292,792
USG Corp.*		16,790		282,576
Applied Industrial Technologies, Inc.		8,670		281,602
CNH Global N.V.		5,820		277,847
Textainer Group Holdings Ltd.		9,730		277,208
Dover Corp.		4,550		265,947
URS Corp.*		6,380		265,472
Simpson Manufacturing Company, Inc.		8,500		262,735
RSC Holdings, Inc.*		26,840		261,421
AO Smith Corp.		6,740		256,659
Joy Global, Inc.		2,900		251,575
Aecom Technology Corp.*		8,696		243,227
TAL International Group, Inc.		7,630		235,538
IHS, Inc. — Class A*		2,880		231,523
Manpower, Inc.		3,670		230,329

8 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
U.S. LONG SHORT MOMENTUM FUND

	Shares		Value
Verisk Analytics, Inc. — Class A*		6,620	$	225,610
Beacon Roofing Supply, Inc.*		12,530		223,911
Aircastle Ltd.		21,170		221,226
Bucyrus International, Inc. — Class A		2,420		216,348
Robert Half International, Inc.		7,070		216,342
Equifax, Inc.		5,970		212,532
Interline Brands, Inc.*		9,330		212,444
Flowserve Corp.		1,770		211,019
Kaman Corp.		7,190		209,013
Dun & Bradstreet Corp.		2,510		206,046
Pall Corp.		4,040		200,303
Shaw Group, Inc.*		5,757		197,062
EMCOR Group, Inc.*		6,790		196,774
Chicago Bridge & Iron Company N.V.*		5,908		194,373
Griffon Corp.*		14,757		188,004
Universal Forest Products, Inc.		4,750		184,775
Quanex Building Products Corp.		9,236		175,207
Ameron International Corp.		2,259		172,520
Towers Watson & Co. — Class A		3,060		159,304
MasTec, Inc.*		10,330		150,715
FTI Consulting, Inc.*		3,570		133,090
Apogee Enterprises, Inc.		9,557		128,733
Trex Company, Inc.*		5,350		128,186
Tutor Perini Corp.		5,863		125,527
Granite Construction, Inc.		4,444		121,899
Corporate Executive Board Co.		3,020		113,401
NCI Building Systems, Inc.*		7,960		111,360
CoStar Group, Inc.*		1,930		111,091
Korn*		4,430		102,377
Dycom Industries, Inc.*		6,940		102,365
Acacia Research — Acacia Technologies*		3,770		97,794
Resources Connection, Inc.		5,040		93,694
Layne Christensen Co.*		2,708		93,209
TrueBlue, Inc.*		4,940		88,871
Administaff, Inc.		3,030		88,779
Insituform Technologies, Inc. — Class A*		3,329		88,252
First Solar, Inc.*		480		62,467
Total Industrials				19,278,035
ENERGY -9.1%
Schlumberger Ltd.		10,330		862,555
Halliburton Co.		12,040		491,593
Tenaris S.A. ADR		8,920		436,902
National Oilwell Varco, Inc.		6,370		428,383
Baker Hughes, Inc.		7,180		410,481
Transocean Ltd.*		5,290		367,708
Weatherford International Ltd.*		14,630		333,564
Cameron International Corp.*		5,460		276,986
FMC Technologies, Inc.*		2,950		262,284
Diamond Offshore Drilling, Inc.		3,490		233,376
Noble Corp.		6,450		230,716
Nabors Industries Ltd.*		8,770		205,744
Pride International, Inc.*		5,680		187,440
McDermott International, Inc.*		8,820		182,486
Helmerich & Payne, Inc.		3,670		177,922
Total Energy				5,088,140
FINANCIALS - 8.5%
Brookfield Asset Management, Inc. — Class A		40,897		1,361,461
Brookfield Properties Corp.		48,799		855,446
CB Richard Ellis Group, Inc. — Class A*		37,289		763,679
Jones Lang LaSalle, Inc.		6,483		544,053
Forest City Enterprises, Inc. — Class A*		27,731		462,830
St. Joe Co.*		20,661		451,443
Forestar Group, Inc.*		12,826		247,542
China Housing & Land Development, Inc.*		32,467		88,960
Total Financials				4,775,414
MATERIALS - 5.5%
BHP Billiton Ltd. ADR		4,130		383,760
Vale S.A. — Class B ADR		9,390		324,612
Rio Tinto plc		4,390		314,587
ArcelorMittal		6,400		244,032
Freeport-McMoRan Copper & Gold, Inc. —Class B		1,980		237,778
Barrick Gold Corp.		4,170		221,761
Southern Copper Co.		4,070		198,372
Goldcorp, Inc.		3,780		173,804
Newmont Mining Co.		2,710		166,475
Kinross Gold Corp.		7,460		141,442
AngloGold Ashanti Ltd. ADR		2,670		131,444
Alcoa, Inc.		8,170		125,736
Nucor Corp.		2,730		119,629
Agnico-Eagle Mines Ltd.		1,400		107,380
Cia de Minas Buenaventura S.A. ADR		2,120		103,795
Gerdau S.A. ADR		4,750		66,453
Total Materials				3,061,060
INFORMATION TECHNOLOGY - 2.0%
Intel Corp.		9,320		196,000
Taiwan Semiconductor Manufacturing Company Ltd. ADR		11,940		149,728
Texas Instruments, Inc.		3,470		112,775
Applied Materials, Inc.		5,880		82,614
Broadcom Corp. — Class A		1,830		79,696
ASML Holding N.V. — Class G		2,020		77,447
Analog Devices, Inc.		1,630		61,402
Marvell Technology Group Ltd.*		3,280		60,844
Altera Corp.		1,680		59,774
NVIDIA Corp.*		3,650		56,210
Micron Technology, Inc.*		6,610		53,012
Linear Technology Corp.		1,500		51,885

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 9

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
U.S. LONG SHORT MOMENTUM FUND

	Shares		Value
Xilinx, Inc.		1,730	$	50,135
Cree, Inc.*		730		48,100
Total Information Technology				1,139,622
Total Common Stocks (Cost $48,795,595)				55,050,280

	Face
	Amount
REPURCHASE AGREEMENT††,2 - 1.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	926,553		926,553
Total Repurchase Agreement (Cost $926,553)				926,553
Total Investments - 99.9% (Cost $49,722,148)			$	55,976,833
Cash & Other Assets, Less Liabilities -0.1%				66,025
Total Net Assets - 100.0%			$	56,042,858

			Unrealized
	Contracts		loss
FUTURES CONTRACTS SOLD SHORT†
March 2011 S&P 500 Index
Mini Futures Contracts (Aggregate Value of Contracts $2,572,238)		41	$	(55,096	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs except as noted — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
†††	Value determined based on Level 3 inputs — See Note 8.
1	Illiquid security.
2	Repurchase Agreement — See Note 7.
	ADR — American Depositary Receipt
	plc — Public Limited Company

10 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

U.S. LONG SHORT MOMENTUM FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	55,050,280
Repurchase agreements, at value		926,553
Total investments		55,976,833
Segregated cash with broker		184,500
Cash		5,807
Receivables:
Securities sold		8,998,279
Fund shares sold		11,744
Dividends		34,531
Total assets		65,211,694
Liabilities:
Payable for:
Variation margin		512
Securities purchased		9,011,067
Fund shares redeemed		17,635
Management fees		43,062
Custodian fees		1,579
Transfer agent/maintenance fees		11,962
Investor service fees		11,962
Portfolio accounting fees		4,785
Other		66,272
Total liabilities		9,168,836
Net assets	$	56,042,858
Net assets consist of:
Paid in capital	$	72,210,430
Accumulated net investment loss		(16,432	)
Accumulated net realized loss on investments		(22,350,729	)
Net unrealized appreciation on investments		6,199,589
Net assets	$	56,042,858
Capital shares outstanding		4,378,188
Net asset value per share	$	12.80
Investments, at cost	$	48,795,595
Repurchase agreements, at cost		926,553
Total cost	$	49,722,148

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $8,525)	$	740,797
Interest		3,247
Total investment income		744,044
Expenses:
Management fees		533,432
Transfer agent and administrative fees		148,175
Investor service fees		148,175
Portfolio accounting fees		59,270
Trustees’ fees*		7,226
Short sales dividend expense		4,535
Prime broker interest expense		1,661
Miscellaneous		117,934
Total expenses		1,020,408
Net investment loss		(276,364	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		11,666,184
Futures contracts		(580,780	)
Securities sold short		(377,348	)
Net realized gain		10,708,056
Net change in unrealized appreciation (depreciation) on:
Investments		(5,390,126	)
Futures contracts		(55,096	)
Net change in unrealized appreciation (depreciation)		(5,445,222	)
Net realized and unrealized gain		5,262,834
Net increase in net assets resulting from operations	$	4,986,470

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 11

U.S. LONG SHORT MOMENTUM FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(276,364	)	$	(226,802	)
Net realized gain on investments		10,708,056			5,045,307
Net change in unrealized appreciation (depreciation) on investments		(5,445,222	)		11,120,488
Net increase in net assets resulting from operations		4,986,470			15,938,993
Distributions to shareholders from:
Net investment income		—			(58,031	)
Total distributions to shareholders		—			(58,031	)
Capital Share Transactions:
Proceeds from sale of shares		26,692,398			30,590,836
Distributions reinvested		—			58,031
Cost of shares redeemed		(43,982,754	)		(50,621,864	)
Net decrease from capital share transactions		(17,290,356	)		(19,972,997	)
Net decrease in net assets		(12,303,886	)		(4,092,035	)
Net Assets:
Beginning of year		68,346,744			72,438,779
End of year	$	56,042,858		$	68,346,744
Accumulated net investment loss at end of year	$	(16,432	)	$	—
Capital Share Activity:
Shares sold		2,270,757			3,256,064
Shares issued from reinvestment of distributions		—			5,158
Shares redeemed		(3,832,859	)		(5,325,054	)
Net decrease in shares		(1,562,102	)		(2,063,832	)

12 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

U.S. LONG SHORT MOMENTUM FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	11.51		$	9.05		$	15.33		$	13.47		$	12.68
Income (loss) from investment operations:
Net investment income (loss)a		(.05	)		(.03	)		.01			(.02	)		(.02	)
Net gain (loss) on investments (realized and unrealized)		1.34			2.50			(6.25	)		3.10			1.48
Total from investment operations		1.29			2.47			(6.24	)		3.08			1.46
Less distributions from:
Net investment income		—			(.01	)		—			—			—
Net realized gains		—			—			(.04	)		(1.22	)		(.67	)
Total distributions		—			(.01	)		(.04	)		(1.22	)		(.67	)
Net asset value, end of period	$	12.80		$	11.51		$	9.05		$	15.33		$	13.47
Total Returnb		11.21	%		27.29	%		(40.73	%)		22.75	%		11.47	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	56,043		$	68,347		$	72,439		$	130,166		$	87,673
Ratios to average net assets:
Net investment income (loss)		(0.47	%)		(0.33	%)		0.05	%		(0.15	%)		(0.16	%)
Total expenses		1.72	%		1.71	%		1.67	%		1.61	%		1.64	%
Operating expensesc		1.71	%		1.71	%		1.67	%		1.61	%		1.64	%
Portfolio turnover rate		314	%		379	%		463	%		277	%		353	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Operating expenses exclude interest and dividend expense from securities sold short.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 13

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

INTERNATIONAL LONG SHORT SELECT FUND

(Formerly, International Opportunity Fund)

OBJECTIVE: Seeks long term capital appreciation.

Inception: March 27, 2008

Management of the Fund changed in June, at which time the name was changed from International Opportunity Fund to International Long Short Select Fund. The Fund is now managed according to a completely bottom-up fundamental stock selection strategy on both the long and short sides of the portfolio. The strategy does not employ derivatives or Exchange Traded Funds (ETFs) to manage equitization or positioning or for any other purpose.

Volatility best describes market performance in 2010, and investors needed to be nimble given the rapid swings in market direction and significant divergences in returns among markets. An early-year sell-off was followed by a solid bull market over February through April, before concerns over European sovereign debt in general and Greece in particular sparked a bear market that persisted until Federal Reserve Chairman Bernanke indicated that the Fed was to embark on another round of quantitative easing. The subsequent rally hit a speed bump in November, as Ireland became the next sovereign casualty, but December saw further advances to end the year on a positive note. For the one year period ended December 31, 2010 the Fund returned -1.00%. The MSCI EAFE Index was up 7.75%.

In the second half of the year, Europe dominated the return profile on the long side due to good stock selection and the heavy Fund exposure to the region. European shorts also performed well with a relatively flat return in markets that performed strongly. In North America, the Fund invests in overseas companies listed in the U.S. and in U.S. companies with significant overseas business exposure. Here, return surpassed Europe, but a lower weighting led to an overall lower contribution. North American shorts, however, performed extremely well, providing a positive return for the half-year. In Asia and Japan, long returns were also positive but short positions struggled, detracting from portfolio performance.

Performance displayed represents past performance which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)
Apple, Inc.	5.2	%
Mastercard, Inc. — Class A	4.4	%
Exxaro Resources Ltd.	4.3	%
Hitachi Ltd.	3.6	%
Software AG	3.5	%
Valeo S.A.	3.5	%
Sony Financial Holdings, Inc.	3.4	%
BNP Paribas	3.4	%
CNOOC Ltd.	3.3	%
Julius Baer Group Ltd.	3.3	%
Top Ten Total	37.9	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

14 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance
March 27, 2008 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

				SINCE
	ONE			INCEPTION
	YEAR			(03/27/08)
INTERNATIONAL LONG SHORT SELECT FUND		-1.00	%		-4.36	%
S&P 500 INDEX		15.06	%		0.36	%
MSCI EAFE INDEX		7.75	%		-4.61	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the MSCI EAFE Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 15

SCHEDULE OF INVESTMENTS December 31, 2010

INTERNATIONAL LONG SHORT SELECT FUND

	shares		value
COMMON STOCKS† - 85.7%
INFORMATION TECHNOLOGY - 23.3%
Apple, Inc.*,1		761	$	245,468
Mastercard, Inc. — Class A1		927		207,750
Hitachi Ltd.		31,835		169,708
Software AG1		1,144		167,941
Xerox Corp.		13,400		154,368
Wistron Corp.		73,434		149,629
Total Information Technology				1,094,864
CONSUMER DISCRETIONARY - 14.1%
Valeo S.A.1		2,922		165,897
Time Warner Cable, Inc. — Class A1		1,936		127,834
Kingfisher plc		28,412		117,015
Kabel Deutschland Holding AG*		2,464		114,890
ProSiebenSat. 1 Media AG		3,032		91,209
Cie Financiere Richemont S.A.		797		46,923
Total Consumer Discretionary				663,768
FINANCIALS - 11.7%
Sony Financial Holdings, Inc.		40		161,773
BNP Paribas1		2,483		158,053
Julius Baer Group Ltd.		3,299		154,674
Banco Santander S.A.		7,410		78,543
Total Financials				553,043
INDUSTRIALS - 9.5%
Marubeni Corp.		19,000		133,567
Deutsche Lufthansa AG		5,596		122,364
Neptune Orient Lines Ltd.		58,515		99,441
Yangzijiang Shipbuilding Holdings Ltd.		63,000		93,803
Total Industrials				449,175
ENERGY - 8.4%
CNOOC Ltd.		66,000		156,579
Nexen, Inc.1		5,355		122,630
Royal Dutch Shell plc — Class A1		3,472		115,787
Total Energy				394,996
TELECOMMUNICATION SERVICES - 6.1%
MetroPCS Communications, Inc.*,1		8,100		102,303
Koninklijke KPN N.V.		6,662		97,265
Vodafone Group plc		34,499		89,253
Total Telecommunication Services				288,821
MATERIALS - 5.7%
Exxaro Resources Ltd.		9,774		200,880
Mongolian Mining Corp.*		57,500		67,097
Total Materials				267,977
CONSUMER STAPLES - 4.1%
Imperial Tobacco Group plc		3,977		122,365
Pernod-Ricard S.A.		767		72,152
Total Consumer Staples				194,517
HEALTH CARE - 2.8%
Fresenius SE & Company KGaA		965		82,662
Fresenius SE-PREF		563		48,228
Total Health Care				130,890
Total Common Stocks (Cost $3,475,378)				4,038,051

	Face
	Amount
REPURCHASE AGREEMENTS††,2 - 25.0%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	302,114		302,114
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		301,235		301,235
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		288,326		288,326
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		288,326		288,326
Total Repurchase Agreements (Cost $1,180,001)				1,180,001
Total Long Investments - 110.6% (Cost $4,655,379)			$	5,218,052

	Shares
COMMON STOCKS SOLD SHORT† - (33.5)%
FINANCIALS - (2.9)%
Commerzbank AG		18,118	(134,538	)
MATERIALS - (3.2)%
JFE Holdings, Inc.		1,400	(48,744	)
Fibria Celulose S.A. ADR*		6,400	(102,400	)
Total Materials			(151,144	)
CONSUMER STAPLES - (4.0)%
Kao Corp.		7,000	(188,563	)
INDUSTRIALS - (4.9)%
Mitsubishi Heavy Industries, Ltd.		26,000	(97,630	)
GS Yuasa Corp.		19,000	(131,462	)
Total Industrials			(229,092	)
INFORMATION TECHNOLOGY - (5.2)%
Solarworld AG		10,902	(108,808	)
Foxconn International Holdings Ltd.*		196,105	(136,999	)
Total Information Technology			(245,807	)

16 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)	December 31, 2010
INTERNATIONAL LONG SHORT SELECT FUND

	Shares		Value
CONSUMER DISCRETIONARY - (5.8)%
Esprit Holdings Ltd.		13,900	$	(66,167	)
Central European Media Enterprises Ltd. - Class A*		3,300		(67,155	)
Sharp Corporation		14,000		(144,266	)
Total Consumer Discretionary				(277,588	)
ENERGY - (7.5)%
Showa Shell Sekiyu KK		19,300		(176,783	)
Neste Oil Oyj		11,065		(176,786	)
Total Energy				(353,569	)
Total Common Stocks Sold Short (Proceeds $1,524,182)			$	(1,580,301	)
Cash & Other Assets,
Less Liabilities - 22.8%				1,074,244
Total Net Assets - 100.0%			$	4,711,995

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	All or a portion of this security is pledged as short security collateral at December 31, 2010.
2	Repurchase Agreements — See Note 7.
	ADR — American Depositary Receipt
	plc — Public Limited Company

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 17

INTERNATIONAL LONG SHORT SELECT FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments, at value	$	4,038,051
Repurchase agreements, at value		1,180,001
Total investments		5,218,052
Segregated cash with broker		1,143,815
Receivable from broker		32
Receivables:
Securities sold		52,576
Dividends		797
Foreign taxes reclaim		304
Foreign exchange		152,379
Interest		4
Total assets		6,567,959
Liabilities:
Payable to broker		32
Securities sold short, at value		1,580,301
Payable for:
Securities purchased		100,172
Fund shares redeemed		9,009
Management fees		3,528
Custodian fees		3,160
Transfer agent/maintenance fees		980
Investor service fees		980
Portfolio accounting fees		392
Interest		5,060
Foreign exchange		152,372
Other		(22	)
Total liabilities		1,855,964
Net assets	$	4,711,995
Net assets consist of:
Paid in capital	$	7,273,300
Accumulated net investment loss		(7,234	)
Accumulated net realized loss on investments		(3,060,567	)
Net unrealized appreciation on investments and foreign currency		506,496
Net assets	$	4,711,995
Capital shares outstanding		216,320
Net asset value per share	$	21.78
Investments, at cost	$	3,475,378
Repurchase agreements, at cost		1,180,001
Total cost	$	4,655,379
Securities sold short, proceeds		1,524,182

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $4,181)	$	42,392
Interest		909
Total investment income		43,301
Expenses:
Management fees		72,508
Transfer agent and administrative fees		20,141
Investor service fees		20,141
Portfolio accounting fees		8,056
Trustees’ fees*		1,307
Short sales dividend expense		15,393
Prime broker interest expense		33,229
Custody fees		13,232
Miscellaneous		11,620
Total expenses		195,627
Net investment loss		(152,326	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(264,227	)
Futures contracts		(1,297,050	)
Foreign currency		(130,524	)
Securities sold short		(294,708	)
Net realized loss		(1,986,509	)
Net change in unrealized appreciation (depreciation) on:
Investments		633,008
Securities sold short		(56,119	)
Futures contracts		(198,940	)
Foreign currency		18,744
Net change in unrealized appreciation (depreciation)		396,693
Net realized and unrealized loss		(1,589,816	)
Net decrease in net assets resulting from operations	$	(1,742,142	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

18 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

INTERNATIONAL LONG SHORT SELECT FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income (loss)	$	(152,326	)	$	33,234
Net realized gain (loss) on investments		(1,986,509	)		1,437,823
Net change in unrealized appreciation (depreciation) on investments		396,693			(445,336	)
Net increase (decrease) in net assets resulting from operations		(1,742,142	)		1,025,721
Distributions to shareholders from:
Net investment income		(46,141	)		(89,971	)
Total distributions to shareholders		(46,141	)		(89,971	)
Capital Share Transactions:
Proceeds from sale of shares		8,950,775			31,223,463
Distributions reinvested		46,141			89,971
Cost of shares redeemed		(24,435,163	)		(22,381,489	)
Net increase (decrease) from capital share transactions		(15,438,247	)		8,931,945
Net increase (decrease) in net assets		(17,226,530	)		9,867,695
Net Assets:
Beginning of year		21,938,525			12,070,830
End of year	$	4,711,995		$	21,938,525
Undistributed/(Accumulated) net investment income/(loss) at end of year	$	(7,234	)	$	46,141
Capital Share Activity:
Shares sold		415,391			1,553,294
Shares issued from reinvestment of distributions		2,162			3,898
Shares redeemed		(1,187,482	)		(1,272,619	)
Net increase (decrease) in shares		(769,929	)		284,573

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 19

INTERNATIONAL LONG SHORT SELECT FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,
	2010			2009			2008a
Per Share Data
Net asset value, beginning of period	$	22.24		$	17.20		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.39	)		.06			.01
Net gain (loss) on investments (realized and unrealized)		.14			5.07			(7.81	)
Total from investment operations		(.25	)		5.13			(7.80	)
Less distributions from:
Net investment income		(.21	)		(.09	)		—
Total distributions		(.21	)		(.09	)		—
Net asset value, end of period	$	21.78		$	22.24		$	17.20
Total Returnd		(1.00	%)		29.79	%		(31.20	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,712		$	21,939		$	12,071
Ratios to average net assets:
Net investment income (loss)		(1.85	%)		0.30	%		0.09	%b
Total expenses		2.38	%		1.71	%		1.64	%b
Operating expensese		1.82	%		1.71	%		1.64	%b
Portfolio turnover rate		238	%		324	%		362	%

a	Since the commencement of operations: March 27, 2008.
b	Annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
e	Operating expenses exclude interest and dividend expense from securities sold short.

20 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

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the RYDEX|SGI variable trust annual report | 21

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

ALTERNATIVE STRATEGIES ALLOCATION FUND

OBJECTIVE: Seeks to deliver a return that has a low correlation to the returns of traditional stock and bond asset classes as well as provide capital appreciation.

Inception: May 1, 2008

Federal Reserve was the dominant force in the market for 2010. The year began with the breakout of the sovereign debt crisis in Europe, and equity markets fell off on the news. After a brief recovery during earnings season, the markets were reminded of the European crisis and fell off again. However, the Fed’s announcement of its second quantitative easing policy changed the market sentiment. Beginning in late August, sentiment moved to risk-on. In the meantime, macroeconomic numbers showed the economy was improving. Despite the emergence of the Ireland crisis and the crisis in other European countries still lingering, the equity and commodities markets ignored these developments, and more than covered the losses from earlier in the year. Short-term bond yields late in the year touched record-low levels.

Alternative investment strategies did not shine in this environment, and some momentum strategies that were designed to capture the trend quicker actually lost money in the market swings. The Fund returned -0.61%. Equities, as represented by the S&P 500^® Index, returned 15.06%. The Barclays Capital U.S. Aggregate Bond Index rose 6.54%.

In the whole period, the Long/Short Commodities Strategy Fund, Event Driven and Distressed Strategies Fund, and Long Short Equity Strategy Fund were the largest contributors to Fund performance. Equity Market Neutral Fund, Managed Futures Strategy Fund and PowerShares DB G10 Currency Harvest Fund contributed the least to performance.

Performance displayed represents past performance which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)
RVT — Managed Futures Strategy Fund	20.1	%
RSF — Equity Market Neutral Fund — Class H	14.3	%
RSF — Long/Short Commodities Strategy Fund — Class H	10.9	%
RSF — Event Driven and Distressed Strategies Fund — Class H	9.8	%
RSF — Long Short Interest Rate Strategy Fund — Class H	9.8	%
RSF — Alternative Strategies Fund — Class H	9.8	%
RVT— Multi-Hedge Strategies Fund	9.6	%
RSF — Long Short Equity Strategy Fund — Class H	4.9	%
RVT — Real Estate Fund	4.5	%
PowerShares DB G10 Currency Harvest Fund	3.7	%
Top Ten Total	97.4	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

22 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance
May 1, 2008 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

				SINCE
	ONE			INCEPTION
	YEAR			(05/01/08)
ALTERNATIVE STRATEGIES ALLOCATION FUND		-0.61	%		-7.32	%
S&P 500 INDEX		15.06	%		-1.95	%
BARCLAYS CAPITAL U.S. AGGREGATE BOND INDEX		6.54	%		5.84	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the Barclays Capital U.S. Aggregate Bond Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 23

SCHEDULE OF INVESTMENTS	December 31, 2010
ALTERNATIVE STRATEGIES ALLOCATION FUND

	Shares		Value
CURRENCY EXCHANGE TRADED FUND† - 3.7%
PowerShares DB G10 Currency Harvest Fund		11,691	$	277,544
Total Currency Exchange Traded Fund (Cost $236,372)				277,544
MUTUAL FUNDS†,1 - 94.8%
RVT — Managed Futures Strategy Fund*		67,496		1,509,896
RSF — Equity Market Neutral Fund — Class H*		49,860		1,076,976
RSF — Long/Short Commodities Strategy Fund — Class H		31,690		816,644
RSF — Event Driven and Distressed Strategies Fund — Class H*		28,589		738,744
RSF — Long Short Interest Rate Strategy Fund — Class H*		28,391		736,457
RSF — Alternative Strategies Fund — Class H		28,885		733,395
RVT — Multi-Hedge Strategies Fund*		33,907		722,227
RSF — Long Short Equity Strategy Fund — Class H*		14,252		367,134
RVT — Real Estate Fund		12,832		336,195
RVT — Commodities Strategy Fund*		6,115		83,097
Total Mutual Funds (Cost $6,926,126)				7,120,765

	Face
	Amount		Value
REPURCHASE AGREEMENT††,2 — 1.5%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	111,030	$	111,030
Total Repurchase Agreement (Cost $111,030)				111,030
Total Investments - 100.0% (Cost $7,273,528)			$	7,509,339
Cash & Other Assets, Less Liabilities - 0.0%				612
Total Net Assets - 100.0%			$	7,509,951

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	Affiliated security.
2	Repurchase Agreement — See Note 7.
	RSF — Rydex Series Funds
	RVT — Rydex Variable Trust

24 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALTERNATIVE STRATEGIES ALLOCATION FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments in unaffiliated issuers, at value*	$	277,544
Investments in affiliated issuers, at value**		7,120,765
Repurchase agreements, at value		111,030
Total investments		7,509,339
Receivables:
Fund shares sold		1,410
Total assets		7,510,749
Liabilities:
Payable for:
Fund shares redeemed		798
Total liabilities		798
Net assets	$	7,509,951
Net assets consist of:
Paid in capital	$	8,010,100
Undistributed net investment income		111,513
Accumulated net realized loss on investments		(847,473	)
Net unrealized appreciation on investments		235,811
Net assets	$	7,509,951
Capital shares outstanding		377,065
Net asset value per share	$	19.92
*Investments in unaffiliated issuers, at cost	$	236,372
**Investments in affiliated issuers, at cost		6,926,126
Repurchase agreements, at cost		111,030
Total cost	$	7,273,528

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment income:
Dividends from affiliated issuers	$	64,818
Interest		173
Total investment income		64,991
Expenses:
Custody fees		168
Total expenses		168
Net investment income		64,823
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(190,886	)
Investments in unaffiliated issuers		(61,451	)
Realized gain distributions received from affiliated issuers		121,657
Net realized loss		(130,680	)
Net change in unrealized appreciation (depreciation) on:
Investments		118,212
Net change in unrealized appreciation (depreciation)		118,212
Net realized and unrealized loss		(12,468	)
Net increase in net assets resulting from operations	$	52,355

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 25

ALTERNATIVE STRATEGIES ALLOCATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	64,823		$	16,270
Net realized loss on investments		(130,680	)		(743,533	)
Net change in unrealized appreciation (depreciation) on investments		118,212			816,581
Net increase in net assets resulting from operations		52,355			89,318
Distributions to shareholders from:
Net investment income		(12,042	)a		—
Net realized gains		(5,793	)a		—
Total distributions to shareholders		(17,835	)		—
Capital share transactions:
Proceeds from sale of shares		6,967,747			4,877,224
Distributions reinvested		17,835			—
Cost of shares redeemed		(4,631,477	)		(2,982,823	)
Net increase from capital share transactions		2,354,105			1,894,401
Net increase in net assets		2,388,625			1,983,719
Net assets:
Beginning of year		5,121,326			3,137,607
End of year	$	7,509,951		$	5,121,326
Undistributed net investment income at end of year	$	111,513		$	180,646
Capital share activity:
Shares sold		357,589			248,709
Shares issued from reinvestment of distributions		912			—
Shares redeemed		(236,359	)		(151,286	)
Net increase in shares		122,142			97,423

^a For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

26 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALTERNATIVE STRATEGIES ALLOCATION FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,
	2010			2009			2008a
Per Share Data
Net asset value, beginning of period	$	20.09		$	19.92		$	25.00
Income (loss) from investment operations:
Net investment incomec		.19			.07			.38
Net gain (loss) on investments (realized and unrealized)		(.31	)		.10			(5.02	)
Total from investment operations		(.12	)		.17			(4.64	)
Less distributions from:
Net investment income		(.03	)d		—			(.39	)d
Net realized gains		(.02	)d		—			(.05	)d
Total distributions		(.05	)		—			(.44	)
Net asset value, end of period	$	19.92		$	20.09		$	19.92
Total Returne		(0.61	%)		0.85	%		(18.55	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,510		$	5,121		$	3,138
Ratios to average net assets:
Net investment income		1.01	%		0.38	%		2.47	%b
Total expensesf		—	g		—	g		—	b,g
Portfolio turnover rate		165	%		149	%		33	%

a	Since commencement of operations: May 1, 2008.
b	Annualized.
c	Net investment income per share was computed using average shares outstanding throughout the period.
d	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.
e	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
f	Does not include expenses of the underlying funds in which the Fund invests.
g	Less than .01%.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report 27

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

MANAGED FUTURES STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a benchmark for measuring trends in the commodity and financial futures markets. The Fund’s current benchmark is the Standard & Poor’s Diversified Trends Indicator^® (“S&P DTI”). If the Fund meets its objective, the value of the Fund’s shares will tend to increase on a daily basis by the amount of any increase in the value of the benchmark. When the value of the benchmark declines, the value of the Fund’s shares should also decrease on a daily basis by the amount of any decrease in value of the benchmark.

Inception: November 7, 2008

For the one-year period ended December 31, 2010, the Fund returned -3.54%, compared with -2.82% for its benchmark, the Standard & Poor’s Diversified Trends Indicator (S&P DTI). Corn, silver, sugar and natural gas were the most significant positive contributors to S&P DTI performance during the year, while wheat, the euro and copper were among the components that contributed least to index performance. The contribution to return from financials and commodities were almost evenly split.

Derivatives in the Fund are used to provide exposure to the composition of the benchmark in the most efficient manner, as well as to provide liquidity.

Performance displayed represents past performance which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

The Fund invests principally in derivative investments such as equity index swap agreements, futures contracts, and options on index futures.

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

28 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance
November 7, 2008 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

				SINCE
	ONE			INCEPTION
	YEAR			(11/07/08)
MANAGED FUTURES STRATEGY FUND		-3.54	%		-5.04	%
S&P DIVERSIFIED TRENDS INDICATOR		-2.82	%		-5.80	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P Diversified Trends Indicator is an unmanaged index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 29

CONSOLIDATED SCHEDULE OF INVESTMENTS December 31, 2010

MANAGED FUTURES STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES††- 35.2%
Federal Home Loan Bank1 0.17% due 01/10/11	$	2,000,000	$	1,999,915
Federal Farm Credit Bank1
0.09% due 01/03/11		1,500,000		1,499,993
0.15% due 01/05/11		1,000,000		999,997
Farmer Mac1 0.16% due 01/12/11		1,000,000		999,987
Total Federal Agency Discount Notes (Cost $5,499,842)				5,499,892
WORLD BANK DISCOUNT NOTE††- 12.8%
World Bank 0.20% due 01/05/11		2,000,000		1,999,994
Total World Bank Discount Note (Cost $1,999,956)				1,999,994
REPURCHASE AGREEMENTS††,2 - 47.1%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11		1,884,745		1,884,745
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		1,879,265		1,879,265
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		1,798,725		1,798,725
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		1,798,725		1,798,725
Total Repurchase Agreements (Cost $7,361,460)				7,361,460
Total Investments - 95.1% (Cost $14,861,258)			$	14,861,346
Cash & Other Assets, Less Liabilities - 4.9%				771,612
Total Net Assets -100.0%			$	15,632,958

			unrealized
	contracts		gain(Loss)
COMMODITY FUTURES CONTRACTS PURCHASED†
March 2011 Soybean Futures Contracts (Aggregate Value of Contracts $982,100)		14	$	226,089
March 2011 Copper Futures Contracts (Aggregate Value of Contracts $998,775)		9		104,002
March 2011 Wheat Futures Contracts (Aggregate Value of Contracts $436,837)		11		60,463
March 2011 WTI Crude Futures Contracts (Aggregate Value of Contracts $1,472,640)		16		55,896
March 2011 Sugar #11 Futures Contracts (Aggregate Value of Contracts $179,032)		5		46,538
March 2011 Silver Futures Contracts (Aggregate Value of Contracts $308,750)		2		40,464
March 2011 RBOB Gasoline Futures Contracts (Aggregate Value of Contracts $715,567)		7		36,051
March 2011 Corn Futures Contracts (Aggregate Value of Contracts $691,900)		22		27,411
March 2011 Coffee Futures Contracts (Aggregate Value of Contracts $268,425)		3		25,505
March 2011 Heating Oil Futures Contracts (Aggregate Value of Contracts $642,852)		6		18,508
February 2011 Lean Hogs Futures Contracts (Aggregate Value of Contracts $287,100)		9		13,508
February 2011 Gold 100 Oz Futures Contracts (Aggregate Value of Contracts $567,920)		4		11,868
February 2011 Live Cattle Futures Contracts (Aggregate Value of Contracts $520,680)		12		11,547
March 2011 Cotton #2 Futures Contracts (Aggregate Value of Contracts $217,215)		3		(3,459	)
(Total Aggregate Value of Contracts $8,289,793)			$	674,391
CURRENCY FUTURES CONTRACTS PURCHASED†
March 2011 Swiss Franc Futures Contracts (Aggregate Value of Contracts $401,813)		3	$	19,267
March 2011 Australian Dollar Futures Contracts (Aggregate Value of Contracts $304,260)		3		10,613

30 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded) December 31, 2010

MANAGED FUTURES STRATEGY FUND

			Unrealized
	Contracts		Gain(loss)
March 2011 Canadian Dollar Currency Futures Contracts (Aggregate Value of Contracts $200,860)		2	$	2,155
(Total Aggregate Value of Contracts $906,933)			$	32,035
FUTURES CONTRACTS SOLD SHORT†
March 2011 U.S. Long Bond Futures Contracts (Aggregate Value of Contracts $1,220,937)		10	$	36,293
March 2011 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $1,083,938)		9		18,434
(Total Aggregate Value of Contracts $2,304,875)			$	54,727
CURRENCY FUTURES CONTRACTS SOLD SHORT†
March 2011 British Pound Currency Futures Contracts (Aggregate Value of Contracts $778,950)		8	$	6,330
March 2011 Euro Currency Futures Contracts (Aggregate Value of Contracts $2,004,300)		12		(7,551	)
March 2011 Japanese Yen Currency Futures Contracts (Aggregate Value of Contracts $2,003,138)		13		(33,452	)
(Total Aggregate Value of Contracts $4,786,388)			$	(34,673	)

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	Repurchase Agreements — See Note 7.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 31

MANAGED FUTURES STRATEGY FUND

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	7,499,886
Repurchase agreements, at value		7,361,460
Total investments		14,861,346
Segregated cash with broker		683,270
Receivables:
Variation margin		94,250
Fund shares sold		518
Interest		23
Other assets		3,054
Total assets		15,642,461
Liabilities:
Payable for:
Fund shares redeemed		874
Management fees		11,790
Custodian fees		443
Transfer agent/maintenance fees		3,275
Investor service fees		3,275
Portfolio accounting fees		1,310
Licensing fees		(11,464	)
Total liabilities		9,503
Net assets	$	15,632,958
Net assets consist of:
Paid in capital	$	15,901,776
Accumulated net investment loss		—
Accumulated net realized loss on investments		(995,386	)
Net unrealized appreciation on investments		726,568
Net assets	$	15,632,958
Capital shares outstanding		698,713
Net asset value per share	$	22.37
Investments, at cost	$	7,499,798
Repurchase agreements, at cost		7,361,460
Total cost	$	14,861,258

CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment income:
Interest		29,297
Total investment income		29,297
Expenses:
Management fees		215,760
Transfer agent and administrative fees		54,215
Investor service fees		54,215
Portfolio accounting fees		21,686
Trustees’ fees*		3,876
Licensing fees		82,193
Miscellaneous		42,906
Total expenses		474,851
Less Expenses waived by Advisor		(20,585	)
Net expenses		454,266
Net investment loss		(424,969	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,195	)
Futures contracts		(2,104,393	)
Net realized loss		(2,106,588	)
Net change in unrealized appreciation (depreciation) on:
Investments		88
Futures contracts		974,880
Net change in unrealized appreciation (depreciation)		974,968
Net realized and unrealized loss		(1,131,620	)
Net decrease in net assets resulting from operations	$	(1,556,589	)

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

32 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

MANAGED FUTURES STRATEGY FUND

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(424,969	)	$	(493,500	)
Net realized loss on investments		(2,106,588	)		(481,674	)
Net change in unrealized appreciation (depreciation) on investments		974,968			(126,186	)
Net decrease in net assets resulting from operations		(1,556,589	)		(1,101,360	)
Distributions to shareholders		—			—
Capital share transactions:
Proceeds from sale of shares		19,457,158			58,236,725
Cost of shares redeemed		(30,900,254	)		(34,915,511	)
Net increase (decrease) from capital share transactions		(11,443,096	)		23,321,214
Net increase (decrease) in net assets		(12,999,685	)		22,219,854
Net Assets:
Beginning of year		28,632,643			6,412,789
End of year	$	15,632,958		$	28,632,643
Accumulated net investment loss at end of year	$	—		$	—
Capital share activity:
Shares sold		881,807			2,458,377
Shares redeemed		(1,417,904	)		(1,489,649	)
Net increase (decrease) in shares		(536,097	)		968,728

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 33

MANAGED FUTURES STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,
	2010e			2009e			2008a,b
Per Share Data
Net asset value, beginning of period	$	23.19		$	24.10		$	25.00
Income (loss) from investment operations:
Net investment lossc		(.43	)		(.49	)		(.08	)
Net loss on investments (realized and unrealized)		(.39	)		(.42	)		(.82	)
Total from investment operations		(.82	)		(.91	)		(.90	)
Net asset value, end of period	$	22.37		$	23.19		$	24.10
Total Returnd		(3.54	%)		(3.78	%)		(3.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,633		$	28,633		$	6,413
Ratios to average net assets:
Net investment loss		(1.96	%)		(2.08	%)		(2.09	%)b
Total expenses		2.19	%		2.32	%		2.21	% b
Net expensesf		2.09	%		2.20	%		2.21	% b
Portfolio turnover rate		—			—			—

a	Since commencement of operations: November 7, 2008.
b	Annualized.
c	Net investment loss per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
e	Consolidated
f	Net expense information reflects the expense ratios after expense waivers, as applicable.

34 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

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the RYDEX|SGI variable trust annual report | 35

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

MULTI-HEDGE STRATEGIES FUND

OBJECTIVE: Seeks long-term capital appreciation with less risk than traditional equity funds.

Inception: November 29, 2005

2010 was the first full calendar year of performance since the Fund’s objective was changed from hedge fund replication to capital appreciation with risk management. The result for 2010 was strong, as the Fund generated a 6.18% return with only 3.5% annualized risk, for a Sharpe ratio approximating 1.5. In addition to generating a strong Sharpe ratio, the Fund generated a correlation of 60% to the S&P 500 Index over the course of the year.

While no longer a replication product, the Fund still maintains the HFRX Global Hedge Fund Index as its benchmark, which was up 5.19% for the year. Four (global macro, long/short equity, equity market neutral and merger arbitrage) of the five hedged strategies employed by the Fund contributed positive returns to the Fund, while the fifth, fixed-income arbitrage, detracted from performance.

Global macro contributed the most to return, 3.2%, as gains from the trend model were supplemented by gains from a newly introduced relative value model.

Long/short equity contributed the second-most, adding 1.4% to Fund return. The underlying country-rotation, industry-rotation, buy-write and closed end long/short strategies all performed well and contributed approximately equal amounts to return.

Merger arbitrage contributed 0.7% to Fund return. Our implementation of this strategy returned 5.1% with volatility of 1.3%. This return trailed the HFRX Merger Arbitrage index by -0.6% but at approximately half the risk level.

The equity market neutral strategy recovered from a difficult 2009, contributing 0.6% to Fund performance in 2010 due in large part to the size trade, which was positioned to benefit along with the outperformance of small cap stocks.

The fixed-income strategies, which consist of government bond yield and spread trades, subtracted -0.6% from Fund performance during the year.

Derivatives in the Fund are used for various purposes, including hedging, producing income and for speculation.

Performance displayed represents past performance which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)
Qwest Communications International, Inc.	3.2	%
Allegheny Energy, Inc.	2.5	%
McAfee, Inc.	2.3	%
Del Monte Foods Co.	2.1	%
Bucyrus International, Inc. — Class A	1.9	%
CommScope, Inc.	1.9	%
Dionex Corp.	1.8	%
Syniverse Holdings, Inc.	1.7	%
Novell, Inc.	1.7	%
Alberto-Culver Co. — Class B	1.7	%
Top Ten Total	20.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

36 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance
November 29, 2005 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(11/29/05)
MULTI-HEDGE STRATEGIES FUND		6.18	%		-1.56	%		-1.38	%
S&P 500 INDEX		15.06	%		2.29	%		2.14	%
HFRX GLOBAL HEDGE FUND INDEX		5.19	%		0.84	%		1.12	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the HFRX Global Hedge Fund Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 37

CONSOLIDATED SCHEDULE OF INVESTMENTS December 31, 2010

MULTI-HEDGE STRATEGIES FUND

	Shares		Value
COMMON STOCKS† - 61.1%
INFORMATION TECHNOLOGY — 12.3%
McAfee, Inc.*		8,630	$	399,655
CommScope, Inc.*		10,960		342,171
Novell, Inc.*		51,370		304,110
L-1 Identity Solutions, Inc. — Class 1*		14,330		170,670
Compellent Technologies, Inc.*		3,060		84,425
Hypercom Corp.*		7,658		64,097
Voltaire, Ltd.*		6,020		52,073
Atheros Communications, Inc.*,1		1,030		36,998
Xerox Corp.1		3,190		36,749
CA, Inc.1		1,470		35,927
Tech Data Corp.*,1		800		35,216
CPI International, Inc.*		1,780		34,443
Art Technology Group, Inc.*		5,750		34,385
Compuware Corp.*,1		2,850		33,260
Marvell Technology Group Ltd.*,1		1,690		31,350
Fiserv, Inc.*,1		510		29,866
Skyworks Solutions, Inc.*,1		990		28,344
Corning, Inc.1		1,440		27,821
Intuit, Inc.*,1		560		27,608
AVX Corp.1		1,700		26,231
Diebold, Inc.1		790		25,320
EMC Corp.*,1		1,070		24,503
Xilinx, Inc.1		790		22,894
Micron Technology, Inc.*,1		2,600		20,852
Cree, Inc.*,1		310		20,426
Broadridge Financial Solutions, Inc		910		19,956
WebMD Health Corp. — Class A*,1		390		19,913
Silicon Laboratories, Inc.*,1		420		19,328
Akamai Technologies, Inc.*,1		400		18,820
International Business Machines Corp.1		120		17,611
eBay, Inc.*,1		610		16,976
Fairchild Semiconductor International, Inc. — Class A*,1		1,000		15,610
F5 Networks, Inc.*,1		110		14,318
SanDisk Corp.*,1		220		10,969
Apple, Inc.*,1		30		9,677
Harris Corp.1		200		9,060
LTX-Credence Corp.*		1,196		8,850
Red Hat, Inc.*,1		180		8,217
Factset Research Systems, Inc.1		70		6,563
Atmel Corp.*,1		420		5,174
Cognizant Technology Solutions Corp. — Class A*,1		70		5,130
Teradata Corp.*,1		110		4,528
Microchip Technology, Inc.1		120		4,105
Salesforce.com, Inc.*,1		30		3,960
Lexmark International, Inc. — Class A*,1		70		2,437
Amphenol Corp. — Class A1		20		1,056
Solera Holdings, Inc.1		20		1,026
NetApp, Inc.*		10		550
Total Information Technology				2,173,228
HEALTH CARE — 7.7%
Dionex Corp.*		2,620		309,186
King Pharmaceuticals, Inc.*		16,980		238,569
Alcon, Inc.		1,250		204,250
Crucell N.V. ADR*		4,230		132,357
Martek Biosciences Corp.*		2,210		69,173
Alexion Pharmaceuticals, Inc.*,1		500		40,275
Biogen Idec, Inc.*,1		580		38,889
Amgen, Inc.*,1		660		36,234
LifePoint Hospitals, Inc.*,1		950		34,913
ResMed, Inc.*,1		990		34,294
Cooper Companies, Inc.1		470		26,480
Community Health Systems, Inc.*,1		600		22,422
Endo Pharmaceuticals Holdings, Inc.*,1		570		20,355
Humana, Inc.*,1		350		19,159
Watson Pharmaceuticals, Inc.*,1		360		18,594
AmerisourceBergen Corp. — Class A1		440		15,013
Henry Schein, Inc.*,1		240		14,734
Omnicare, Inc.1		480		12,187
Abbott Laboratories1		240		11,498
Thermo Fisher Scientific, Inc.*,1		200		11,072
McKesson Corp.1		130		9,149
Kinetic Concepts, Inc.*,1		210		8,795
Hospira, Inc.*,1		100		5,569
Intuitive Surgical, Inc.*,1		20		5,155
Bio-Rad Laboratories, Inc. — Class A*,1		40		4,154
Teleflex, Inc.1		70		3,767
Edwards Lifesciences Corp.*,1		20		1,617
Perrigo Co.1		20		1,267
Lincare Holdings, Inc.1		30		805
Coventry Health Care, Inc.*		10		264
Total Health Care				1,350,196
INDUSTRIALS — 7.3%
Bucyrus International, Inc. — Class A1		3,840		343,296
Baldor Electric Co.		4,800		302,592
FedEx Corp.		560		52,086
Copa Holdings S.A. — Class A		790		46,484
CNH Global N.V.1		820		39,147
Thomas & Betts Corp.*,1		800		38,640
Copart, Inc.*		920		34,362
Crane Co.1		730		29,981
Ladish Company, Inc.*		600		29,166
Republic Services, Inc. — Class A1		970		28,964

38 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2010

MULTI-HEDGE STRATEGIES FUND

	Shares		Value
Navistar International Corp.*,1		490	$	28,376
WESCO International, Inc.*,1		530		27,984
Corrections Corporation of America*,1		1,040		26,062
Goodrich Corp.1		280		24,660
CSX Corp.1		340		21,967
WW Grainger, Inc.1		150		20,717
TransDigm Group, Inc.*,1		240		17,282
Dollar Thrifty Automotive Group, Inc.*,1		360		17,014
Union Pacific Corp.1		180		16,679
L-3 Communications Holdings, Inc. — Class 31		210		14,803
Southwest Airlines Co.1		1,100		14,278
Cummins, Inc.1		100		11,001
Delta Air Lines, Inc.*,1		679		8,555
ITT Corp.1		160		8,338
GATX Corp.1		230		8,114
Joy Global, Inc.1		90		7,808
Pentair, Inc.1		210		7,667
CH Robinson Worldwide, Inc.1		80		6,415
Valmont Industries, Inc.1		70		6,211
Hubbell, Inc. — Class B1		90		5,412
Applied Signal Technology, Inc.		140		5,305
FTI Consulting, Inc.*,1		140		5,219
Flowserve Corp.1		40		4,769
Ingersoll-Rand plc1		100		4,709
Timken Co.1		60		2,864
Snap-On, Inc.1		50		2,829
General Cable Corp.*,1		80		2,807
Trinity Industries, Inc.1		100		2,661
Armstrong World Industries, Inc.1		50		2,150
Raytheon Co.1		40		1,854
Kirby Corp.*		10		441
Total Industrials				1,279,669
FINANCIALS - 6.5%
NewAlliance Bancshares, Inc.		10,350		155,043
Marshall & Ilsley Corp.		20,030		138,608
Whitney Holding Corp.		7,730		109,380
Annaly Capital Management, Inc.		2,920		52,326
Endurance Specialty Holdings Ltd.		830		38,238
Legg Mason, Inc.		1,050		38,084
American Financial Group, Inc.		1,160		37,456
JPMorgan Chase & Co.		880		37,330
Allied World Assurance Company Holdings, Ltd.		610		36,258
Reinsurance Group of America, Inc. — Class A		570		30,615
Hospitality Properties Trust		1,320		30,413
PNC Financial Services Group, Inc.		450		27,324
Digital Realty Trust, Inc.		520		26,801
Raymond James Financial, Inc.		680		22,236
Hudson City Bancorp, Inc.		1,670		21,276
Student Loan Corp.		618		20,048
NASDAQ OMX Group, Inc.*		830		19,679
CommonWealth REIT		760		19,388
Torchmark Corp.		310		18,519
Assurant, Inc.		460		17,719
Aspen Insurance Holdings Ltd.		600		17,172
Capital One Financial Corp.		390		16,598
New York Community Bancorp, Inc.		860		16,211
Piedmont Office Realty Trust, Inc. — Class A		800		16,112
StanCorp Financial Group, Inc.		340		15,348
Rayonier, Inc.		290		15,231
CapitalSource, Inc.		2,000		14,200
Axis Capital Holdings Ltd.		340		12,199
Huntington Bancshares, Inc.		1,740		11,954
Forest City Enterprises, Inc. — Class A*		670		11,182
Public Storage		110		11,156
Zions Bancorporation		430		10,419
Unum Group		430		10,415
Hanover Insurance Group, Inc.		190		8,877
Fifth Third Bancorp		530		7,780
Douglas Emmett, Inc.		400		6,640
HCC Insurance Holdings, Inc.		220		6,367
Senior Housing Properties Trust		280		6,143
Alexandria Real Estate Equities, Inc.		80		5,861
First Citizens BancShares, Inc. — Class A		20		3,781
SL Green Realty Corp.		50		3,376
Transatlantic Holdings, Inc.		60		3,097
Morgan Stanley		90		2,449
Genworth Financial, Inc. — Class A*		180		2,365
Jones Lang LaSalle, Inc.		20		1,678
General Growth Properties, Inc.		100		1,548
Howard Hughes Corporation*		23		1,252
MBIA, Inc.*		90		1,079
Aflac, Inc.		10		564
BancorpSouth, Inc.		20		319
Total Financials				1,138,114
CONSUMER DISCRETIONARY - 6.3%
J Crew Group, Inc.*		4,780		206,209
Jo-Ann Stores, Inc.*		1,680		101,170
Whirlpool Corp.1		470		41,750
Comcast Corp. — Class A1		1,750		38,448
Wyndham Worldwide Corp.1		1,230		36,851
Mediacom Communications Corp. — Class A*		3,930		33,248
Federal-Mogul Corp.*,1		1,550		32,007
Priceline.com, Inc.*,1		80		31,964
Mattel, Inc.1		1,220		31,025
Darden Restaurants, Inc.1		660		30,650
Williams-Sonoma, Inc.1		670		23,912
Brinker International, Inc.1		960		20,045

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 39

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued) December 31, 2010

MULTI-HEDGE STRATEGIES FUND

	Shares		Value
Ross Stores, Inc.1		300	$	18,975
VF Corp.1		220		18,960
Liberty Global, Inc. — Class A*,1		520		18,398
Polo Ralph Lauren Corp. — Class A1		160		17,747
Autoliv, Inc.1		220		17,367
International Speedway Corp. — Class A1		660		17,272
Panera Bread Co. — Class A*,1		170		17,206
Lear Corporation*,1		170		16,781
Liberty Media Corporation - Interactive*,1		1,060		16,716
NIKE, Inc. — Class B1		190		16,230
Amazon.com, Inc.*,1		90		16,200
Liberty Media Corp. — Starz*,1		240		15,955
McDonald’s Corp.1		200		15,352
Service Corporation International1		1,830		15,097
Gentex Corp.1		460		13,598
Tesla Motors, Inc.*,1		510		13,581
Ford Motor Co.*,1		800		13,432
Gannett Company, Inc.1		880		13,279
Yum! Brands, Inc.1		270		13,244
PetSmart, Inc.1		320		12,742
NetFlix, Inc.*,1		70		12,299
Bally Technologies, Inc.*,1		290		12,235
Virgin Media, Inc.1		410		11,168
Career Education Corp.*,1		530		10,987
Leggett & Platt, Inc.1		450		10,242
Royal Caribbean Cruises Ltd.*,1		190		8,930
Guess?, Inc.1		180		8,518
Time Warner Cable, Inc. — Class A1		110		7,263
BorgWarner, Inc.*,1		100		7,236
Family Dollar Stores, Inc.1		120		5,965
Madison Square Garden, Inc. — Class A*,1		220		5,672
Viacom, Inc. — Class B1		140		5,545
Coach, Inc.1		90		4,978
Limited Brands, Inc.1		160		4,917
Hanesbrands, Inc.*,1		180		4,572
Big Lots, Inc.*,1		150		4,569
Goodyear Tire & Rubber Co.*,1		380		4,503
Phillips-Van Heusen Corp.1		70		4,411
DISH Network Corp. — Class A*,1		220		4,325
Hasbro, Inc.1		80		3,774
Bed Bath & Beyond, Inc.*,1		70		3,441
Las Vegas Sands Corp.*,1		70		3,217
Jarden Corp.1		90		2,778
Regal Entertainment Group — Class A1		229		2,688
Thor Industries, Inc.1		70		2,377
Carnival Corp.1		50		2,306
Hyatt Hotels Corporation — Class A*,1		50		2,288
Stanley Black & Decker, Inc.1		30		2,006
Johnson Controls, Inc.1		50		1,910
GameStop Corp. — Class A*,1		80		1,830
WMS Industries, Inc.*,1		30		1,357
Advance Auto Parts, Inc.1		20		1,323
Best Buy Company, Inc.1		30		1,029
Fossil, Inc.*		10		705
The Gap, Inc.1		20		443
Total Consumer Discretionary				1,117,218
CONSUMER STAPLES - 5.6%
Del Monte Foods Co.1		19,790		372,052
Alberto-Culver Co. — Class B		8,180		302,987
Molson Coors Brewing Co. — Class B1		840		42,160
JM Smucker Co.1		570		37,421
Church & Dwight Company, Inc.1		530		36,581
ConAgra Foods, Inc.1		1,500		33,870
BJ’s Wholesale Club, Inc.*,1		660		31,614
Herbalife Ltd.1		400		27,348
Reynolds American, Inc.1		740		24,139
Wal-Mart Stores, Inc.1		310		16,718
Coca-Cola Co.1		240		15,785
Estee Lauder Companies, Inc. — Class A1		180		14,526
Kimberly-Clark Corp.1		170		10,717
Sara Lee Corp.1		209		3,660
Whole Foods Market, Inc.1		70		3,541
Tyson Foods, Inc. — Class A1		180		3,100
Kraft Foods, Inc. — Class A1		80		2,521
Dr Pepper Snapple Group, Inc.1		50		1,758
Coca-Cola Enterprises, Inc.1		39		976
Total Consumer Staples				981,474
UTILITIES - 5.3%
Allegheny Energy, Inc.		17,730		429,775
Nicor, Inc.		2,810		140,275
Progress Energy, Inc.1		1,050		45,654
Xcel Energy, Inc.1		1,770		41,683
Oneok, Inc.1		720		39,938
CMS Energy Corp.1		2,010		37,386
NiSource, Inc.1		2,090		36,826
Atmos Energy Corp.1		1,100		34,320
N.V. Energy, Inc.1		2,160		30,348
DTE Energy Co.1		520		23,566
TECO Energy, Inc.1		1,300		23,140
NRG Energy, Inc.*,1		970		18,954
UGI Corp.1		500		15,790
Ameren Corp.1		410		11,558
Questar Corp.1		210		3,656
NSTAR1		19		802
CenterPoint Energy, Inc.1		50		786
Total Utilities				934,457

40 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
MULTI-HEDGE STRATEGIES FUND

	Shares		Value
TELECOMMUNICATION SERVICES - 5.1%
Qwest Communications International, Inc.		74,630	$	567,934
Syniverse Holdings, Inc.*		10,000		308,500
Verizon Communications, Inc.1		860		30,771
Total Telecommunication Services				907,205
ENERGY - 3.7%
Atlas Energy, Inc.*		3,060		134,601
T-3 Energy Services, Inc. — Class 3*		3,130		124,668
Penn Virginia GP Holdings, LP		2,950		77,644
Newfield Exploration Co.*		560		40,382
EXCO Resources, Inc.		1,830		35,539
Southern Union Co.		1,460		35,142
Teekay Corp.		960		31,757
Spectra Energy Corp.		1,170		29,238
Murphy Oil Corp.		350		26,093
Rowan Companies, Inc.*		640		22,342
Helmerich & Payne, Inc.		360		17,453
Pride International, Inc.*		390		12,870
National Oilwell Varco, Inc.		170		11,432
Williams Companies, Inc.		380		9,394
Peabody Energy Corp.		140		8,957
Chevron Corp.		70		6,388
Oil States International, Inc.*		80		5,127
Alpha Natural Resources, Inc.*		70		4,202
Concho Resources, Inc.*		40		3,507
Tidewater, Inc.		60		3,230
Exterran Holdings, Inc.*		130		3,114
Diamond Offshore Drilling, Inc.		30		2,006
Marathon Oil Corp.		50		1,852
Cabot Oil & Gas Corp.		20		757
Atwood Oceanics, Inc.*		10		374
Total Energy				648,069
MATERIALS -1.3%
Reliance Steel & Aluminum Co.1		720		36,792
Newmont Mining Co.1		510		31,329
Ashland, Inc.1		490		24,921
Cytec Industries, Inc.1		280		14,857
Bemis Company, Inc.1		430		14,044
Huntsman Corp.1		820		12,800
Valspar Corp.1		350		12,068
Compass Minerals International, Inc.1		130		11,605
MeadWestvaco Corp.1		410		10,726
Domtar Corp.1		130		9,870
Packaging Corporation of America1		380		9,819
MMC Norilsk Nickel ADR		335		8,054
RPM International, Inc.1		300		6,630
Celanese Corp. — Class A1		130		5,352
Albemarle Corp.1		90		5,020
Sealed Air Corp.1		160		4,072
Sherwin-Williams Co.1		30		2,513
Cabot Corp.1		30		1,130
Total Materials				221,602
Total Common Stocks (Cost $9,477,301)				10,751,222
EXCHANGE TRADED FUNDS† - 3.0%
iShares MSCI Chile Investable Market Index Fund		1,550		123,380
iShares MSCI Malaysia Index Fund		6,620		95,196
iShares MSCI United Kingdom Index Fund		3,880		67,396
iShares MSCI Turkey Index Fund		690		45,685
iShares MSCI Emerging Markets Index Fund		860		40,953
iShares MSCI South Africa Index Fund		540		40,327
iPath MSCI India Index ETN		510		39,607
iShares MSCI South Korea Index Fund		410		25,088
Vanguard Emerging Markets ETF		260		12,519
iShares MSCI Sweden Index Fund		390		12,180
iShares MSCI Switzerland Index Fund		450		11,286
iShares MSCI Australia Index Fund		410		10,430
iShares MSCI Canada Index Fund		120		3,720
Total Exchange Traded Funds (Cost $371,613)				527,767
CLOSED-END FUNDS† - 11.1%
Cohen & Steers Infrastructure Fund, Inc.		8,089		132,821
Royce Value Trust, Inc.		8,885		129,191
Gabelli Dividend & Income Trust		7,852		120,607
NFJ Dividend Interest & Premium Strategy Fund1		6,710		117,492
Cohen & Steers Quality Income Realty Fund, Inc.		12,049		104,224
Liberty All Star Equity Fund		20,802		102,554
Cohen & Steers REIT and Preferred Income Fund, Inc.1		7,063		100,930
Calamos Strategic Total Return Fund		9,673		89,572
Eaton Vance Tax-Advantaged Dividend Income Fund		4,735		78,364
Alpine Global Premier Properties Fund1		10,579		75,005
Adams Express Company		5,942		63,702
John Hancock Bank and Thrift Opportunity Fund		3,537		60,907
DWS High Income Opportunities Fund, Inc.1		4,039		56,869
Tri-Continental Corp.		3,897		53,623

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 41

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)	December 31, 2010
MULTI-HEDGE STRATEGIES FUND

	Shares		Value
H&Q Healthcare Investors		3,744	$	50,057
John Hancock Tax-Advantaged Dividend Income Fund		3,254		48,517
BlackRock Strategic Dividend Achievers Trust		4,397		46,960
Petroleum & Resources Corp.		1,723		46,538
Macquarie Global Infrastructure Total Return Fund, Inc.		2,599		44,911
General American Investors Company, Inc.		1,332		35,715
Swiss Helvetia Fund, Inc.		2,292		31,034
Zweig Fund, Inc.		9,005		30,167
Clough Global Equity Fund		1,975		29,783
LMP Capital and Income Fund, Inc.1		2,357		29,345
H&Q Life Sciences Investors1		2,615		28,164
Royce Micro-Capital Trust, Inc.		2,601		25,489
Claymore Dividend & Income Fund1		1,693		25,446
Gabelli Global Deal Fund		1,833		24,507
Nuveen Diversified Dividend and Income Fund		1,904		20,735
Neuberger Berman Real Estate Securities Income Fund, Inc.		5,159		20,481
Cohen & Steers Dividend Majors Fund, Inc.		1,471		19,064
Source Capital, Inc.		352		18,726
Liberty All Star Growth Fund, Inc.		4,280		18,190
Nuveen Tax-Advantaged Dividend Growth Fund1		1,299		16,900
LMP Real Estate Income Fund, Inc.		1,531		15,463
Lazard Global Total Return and Income Fund, Inc.		987		14,864
Blue Chip Value Fund, Inc.		3,414		12,666
Macquarie		866		12,540
Royce Focus Trust, Inc.		1,420		10,749
Diamond Hill Financial Trends Fund, Inc.		333		3,267
Total Closed-End Funds (Cost $1,562,149)				1,966,139
	Face Amount
REPURCHASE AGREEMENTS††,2 - 11.0%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/111	$	623,069		623,069
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		454,816		454,816
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		435,324		435,324
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11	$	435,324		435,324
Total Repurchase Agreements (Cost $1,948,533)				1,948,533
Total Long Investments - 86.2% (Cost $13,359,596)			$	15,193,661

	Shares
COMMON STOCKS SOLD SHORT† - (33.2)%
CONSUMER STAPLES — (1.4)%
SUPERVALU, Inc.		90	(867	)
Costco Wholesale Corp.		30	(2,166	)
Colgate-Palmolive Co.		30	(2,411	)
Lorillard, Inc.		30	(2,462	)
Altria Group, Inc.		110	(2,708	)
Avon Products, Inc.		120	(3,487	)
PepsiCo, Inc.		60	(3,920	)
Sysco Corp.		140	(4,116	)
Mead Johnson Nutrition Co. — Class A		70	(4,357	)
Central European Distribution Corp.*		300	(6,870	)
Kellogg Co.		150	(7,662	)
Smithfield Foods, Inc.*		430	(8,871	)
Flowers Foods, Inc.		350	(9,419	)
Energizer Holdings, Inc.*		140	(10,206	)
Clorox Co.		220	(13,922	)
Brown-Forman Corp. — Class B		220	(15,316	)
HJ Heinz Co.		310	(15,333	)
Procter & Gamble Co.		260	(16,726	)
Archer-Daniels-Midland Co.		560	(16,845	)
Safeway, Inc.		791	(17,790	)
Kroger Co.		811	(18,134	)
Corn Products International, Inc.		410	(18,860	)
Bunge Ltd.		300	(19,656	)
Constellation Brands, Inc. — Class A*		911	(20,169	)
Total Consumer Staples			(242,273	)
MATERIALS - (1.5)%
Greif, Inc. — Class A		10	(619	)
Praxair, Inc.		10	(955	)
Alcoa, Inc.		70	(1,077	)
Sigma-Aldrich Corp.		30	(1,997	)
Owens-Illinois, Inc.*		110	(3,377	)
Monsanto Co.		50	(3,482	)
Commercial Metals Co.		250	(4,147	)
Mosaic Co.		60	(4,582	)
Temple-Inland, Inc.		240	(5,098	)
International Paper Co.		220	(5,993	)
AK Steel Holding Corp.		430	(7,039	)

42 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

MULTI-HEDGE STRATEGIES FUND December 31, 2010

	Shares		Value
Ecolab, Inc.		230	$	(11,597	)
Eagle Materials, Inc.		520		(14,690	)
Allegheny Technologies, Inc.		270		(14,899	)
Freeport-McMoRan Copper & Gold, Inc. — Class B		130		(15,612	)
Nucor Corp.		400		(17,528	)
Royal Gold, Inc.		330		(18,028	)
Scotts Miracle-Gro Co. — Class A		360		(18,277	)
Southern Copper Co.		390		(19,008	)
Vulcan Materials Co.		450		(19,962	)
Intrepid Potash, Inc.*		561		(20,920	)
Martin Marietta Materials, Inc.		250		(23,060	)
Nalco Holding Co.		1,021		(32,611	)
Total Materials				(264,558	)
CONSUMER DISCRETIONARY — (2.0)%
New York Times Co. — Class A*		40		(392	)
Tempur-Pedic International, Inc.*		20		(801	)
MGM Resorts International*		60		(891	)
Scripps Networks Interactive, Inc. — Class A		30		(1,553	)
Expedia, Inc.		80		(2,007	)
Choice Hotels International, Inc.		71		(2,717	)
Thomson Reuters Corp.		80		(2,982	)
DreamWorks Animation SKG, Inc. — Class A*		120		(3,536	)
American Eagle Outfitters, Inc.		250		(3,658	)
Abercrombie & Fitch Co. — Class A		70		(4,034	)
LKQ Corp.*		180		(4,090	)
Chico’s FAS, Inc.		460		(5,534	)
NVR, Inc.*		10		(6,910	)
Wendy’s — Class A		1,851		(8,552	)
Macy’s, Inc.		380		(9,614	)
Harley-Davidson, Inc.		280		(9,708	)
Urban Outfitters, Inc.*		280		(10,027	)
Weight Watchers International, Inc.		270		(10,122	)
Wynn Resorts Ltd.		100		(10,384	)
Mohawk Industries, Inc.*		200		(11,352	)
Cablevision Systems Corp. — Class A		410		(13,874	)
Newell Rubbermaid, Inc.		780		(14,180	)
Lamar Advertising Co. — Class A*		370		(14,741	)
Dick’s Sporting Goods, Inc.*		400		(15,000	)
Office Depot, Inc.*		2,812		(15,185	)
Home Depot, Inc.		480		(16,829	)
Liberty Media Corp.- Capital*		270		(16,891	)
News Corp. — Class A		1,221		(17,778	)
MDC Holdings, Inc.		630		(18,125	)
Meredith Corp.		530		(18,365	)
Marriott International, Inc. — Class A		460		(19,108	)
Morningstar, Inc.		370		(19,640	)
International Game Technology		1,121		(19,830	)
Harman International Industries, Inc.*		460		(21,298	)
Total Consumer Discretionary				(349,708	)
ENERGY — (2.3)%
Devon Energy Corp.		20		(1,570	)
FMC Technologies, Inc.*		20		(1,778	)
Schlumberger Ltd.		30		(2,505	)
Exxon Mobil Corp.		40		(2,925	)
Petrohawk Energy Corp.*		172		(3,139	)
Unit Corp.*		70		(3,254	)
Plains Exploration & Production Co.*		190		(6,107	)
EQT Corp.		171		(7,668	)
Holly Corp.		230		(9,377	)
Valero Energy Corp.		540		(12,485	)
SandRidge Energy, Inc.*		1,780		(13,030	)
Chesapeake Energy Corp.		540		(13,991	)
McDermott International, Inc.*		800		(16,552	)
Comstock Resources, Inc.*		680		(16,701	)
Southwestern Energy Co.*		490		(18,341	)
Denbury Resources, Inc.*		981		(18,727	)
Ultra Petroleum Corp.*		410		(19,586	)
ConocoPhillips		290		(19,749	)
Range Resources Corp.		450		(20,241	)
Continental Resources, Inc.*		360		(21,186	)
Weatherford International Ltd.*		951		(21,683	)
Frontier Oil Corp.		1,241		(22,350	)
Superior Energy Services, Inc.*		650		(22,744	)
Atlas Pipeline Holdings, LP		1,643		(24,645	)
Penn Virginia Resource Partners, LP		2,920		(82,694	)
Total Energy				(403,028	)
HEALTH CARE — (2.4)%
Quest Diagnostics, Inc.		10		(540	)
CR Bard, Inc.		10		(918	)
Covance, Inc.*		60		(3,085	)
DENTSPLY International, Inc.		100		(3,417	)
Emdeon, Inc. — Class A*		360		(4,874	)
Cerner Corp.*		60		(5,684	)
Techne Corp.		110		(7,224	)
IDEXX Laboratories, Inc.*		110		(7,614	)
Celgene Corp.*		150		(8,871	)
Alere, Inc.*		250		(9,150	)
Hill-Rom Holdings, Inc.		280		(11,024	)
Vertex Pharmaceuticals, Inc.*		340		(11,910	)
Amylin Pharmaceuticals, Inc.*		840		(12,356	)
Allergan, Inc.		180		(12,361	)
Brookdale Senior Living, Inc. — Class A*		710		(15,201	)
DaVita, Inc.*		220		(15,288	)
Human Genome Sciences, Inc.*		640		(15,290	)
Eli Lilly & Co.		440		(15,418	)
Laboratory Corporation of America Holdings*		190		(16,705	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 43

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

MULTI-HEDGE STRATEGIES FUND December 31, 2010

	Shares		Value
Health Net, Inc.*		620	$	(16,920	)
Cephalon, Inc.*		280		(17,282	)
BioMarin Pharmaceutical, Inc.*		710		(19,120	)
VCA Antech, Inc.*		831		(19,354	)
United Therapeutics Corp.*		310		(19,598	)
Patterson Companies, Inc.		650		(19,910	)
Charles River Laboratories International, Inc.*		570		(20,258	)
Boston Scientific Corp.*		2,713		(20,537	)
Agilent Technologies, Inc.*		510		(21,129	)
Gen-Probe, Inc.*		370		(21,590	)
Regeneron Pharmaceuticals, Inc.*		700		(22,981	)
Beckman Coulter, Inc.		330		(24,826	)
Total Health Care				(420,435	)
INDUSTRIALS — (3.6)%
Iron Mountain, Inc.		1		(25	)
Donaldson Company, Inc.		10		(583	)
Boeing Co.		10		(653	)
Hertz Global Holdings, Inc.*		50		(725	)
Honeywell International, Inc.		20		(1,063	)
Emerson Electric Co.		30		(1,715	)
Aecom Technology Corp.*		70		(1,958	)
AMR Corp.*		334		(2,602	)
Avis Budget Group, Inc.*		250		(3,890	)
United Technologies Corp.		50		(3,936	)
Gardner Denver, Inc.		80		(5,506	)
Manpower, Inc.		90		(5,648	)
Manitowoc Company, Inc.		450		(5,899	)
Masco Corp.		510		(6,457	)
Tyco International Ltd.		170		(7,045	)
UTI Worldwide, Inc.		360		(7,632	)
BE Aerospace, Inc.*		220		(8,147	)
Spirit Aerosystems Holdings, Inc. — Class A*		430		(8,948	)
MSC Industrial Direct Co. — Class A		140		(9,057	)
Rockwell Automation, Inc.		140		(10,039	)
USG Corp.*		800		(13,464	)
Quanta Services, Inc.*		680		(13,546	)
KBR, Inc.		460		(14,016	)
Deere & Co.		170		(14,118	)
Shaw Group, Inc.*		430		(14,719	)
AMETEK, Inc.		390		(15,307	)
Illinois Tool Works, Inc.		300		(16,020	)
Fastenal Co.		270		(16,176	)
Jacobs Engineering Group, Inc.*		360		(16,506	)
Lockheed Martin Corp.		240		(16,778	)
Expeditors International of Washington, Inc.		310		(16,926	)
Graco, Inc.		430		(16,964	)
Alliant Techsystems, Inc.		240		(17,863	)
Landstar System, Inc.		450		(18,423	)
Chicago Bridge & Iron Company N.V.*		560		(18,424	)
Fluor Corp.		280		(18,553	)
PACCAR, Inc.		330		(18,949	)
Con-way, Inc.		530		(19,382	)
WABCO Holdings, Inc.*		320		(19,498	)
Oshkosh Corp.*		560		(19,734	)
Robert Half International, Inc.		651		(19,921	)
J.B. Hunt Transport Services, Inc.		490		(19,997	)
Kennametal, Inc.		521		(20,559	)
Avery Dennison Corp.		490		(20,747	)
Terex Corp.*		761		(23,621	)
Robbins & Myers, Inc.		2,860		(102,331	)
Total Industrials				(634,070	)
TELECOMMUNICATION SERVICES — (3.8)%
AT&T, Inc.		10		(294	)
Frontier Communications Corp.		80		(778	)
Windstream Corp.		160		(2,230	)
United States Cellular Corp.*		70		(3,496	)
American Tower Corp. — Class A*		90		(4,647	)
Leap Wireless International, Inc.*		680		(8,337	)
Sprint Nextel Corp.*		2,370		(10,025	)
Level 3 Communications, Inc.*		13,018		(12,758	)
NII Holdings, Inc.*		350		(15,631	)
MetroPCS Communications, Inc.*		1,381		(17,442	)
CenturyLink, Inc.		12,840		(592,823	)
Total Telecommunication Services				(668,461	)
INFORMATION TECHNOLOGY — (4.2)%
National Semiconductor Corp.		1		(14	)
NeuStar, Inc. — Class A*		1		(26	)
CoreLogic, Inc.		10		(185	)
Equinix, Inc.*		10		(813	)
Motorola Solutions, Inc.*		140		(1,270	)
NVIDIA Corp.*		100		(1,540	)
Alliance Data Systems Corp.*		30		(2,131	)
Seagate Technology plc*		162		(2,435	)
Zebra Technologies Corp. — Class A*		71		(2,697	)
Cypress Semiconductor Corp.*		210		(3,902	)
Juniper Networks, Inc.*		110		(4,061	)
Yahoo!, Inc.*		390		(6,486	)
Trimble Navigation Ltd.*		200		(7,986	)
Jabil Circuit, Inc.		420		(8,438	)
KLA-Tencor Corp.		221		(8,539	)
Nuance Communications, Inc.*		530		(9,635	)
Automatic Data Processing, Inc.		240		(11,107	)
Activision Blizzard, Inc.		901		(11,208	)
Novellus Systems, Inc.*		350		(11,312	)
Verigy, Ltd.*		965		(12,564	)
Dell, Inc.*		1,051		(14,241	)
International Rectifier Corp.*		501		(14,875	)
Avnet, Inc.*		460		(15,194	)
Symantec Corp.*		921		(15,417	)
Mastercard, Inc. — Class A		70		(15,688	)
MEMC Electronic Materials, Inc.*		1,421		(16,000	)
Brocade Communications Systems, Inc.*		3,062		(16,198	)
Itron, Inc.*		300		(16,635	)
QLogic Corp.*		1,000		(17,020	)

44 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

MULTI-HEDGE STRATEGIES FUND December 31, 2010

	Shares		Value
Cadence Design Systems, Inc.*		2,152	$	(17,775	)
Electronic Arts, Inc.*		1,101		(18,034	)
Rambus, Inc.*		890		(18,227	)
IAC/InterActiveCorp.*		640		(18,368	)
Western Union Co.		1,011		(18,774	)
Adobe Systems, Inc.*		620		(19,084	)
Molex, Inc.		841		(19,107	)
National Instruments Corp.		510		(19,196	)
NCR Corp.*		1,251		(19,228	)
Autodesk, Inc.*		510		(19,482	)
Lam Research Corp.*		380		(19,676	)
LSI Corp.*		3,293		(19,725	)
ANSYS, Inc.*		380		(19,787	)
Varian Semiconductor Equipment Associates, Inc.*		541		(20,001	)
Applied Materials, Inc.		1,431		(20,106	)
Paychex, Inc.		660		(20,401	)
Avago Technologies Ltd.		730		(20,783	)
Teradyne, Inc.*		1,520		(21,341	)
ON Semiconductor Corp.*		2,220		(21,934	)
Monster Worldwide, Inc.*		951		(22,472	)
Ciena Corp.*		1,271		(26,755	)
VeriFone Systems, Inc.*		1,850		(71,336	)
Total Information Technology				(739,209	)
UTILITIES — (5.1)%
Hawaiian Electric Industries, Inc.		1		(23	)
PG&E Corp.		10		(478	)
Entergy Corp.		10		(708	)
Aqua America, Inc.		91		(2,046	)
SCANA Corp.		80		(3,248	)
Alliant Energy Corp.		350		(12,870	)
Constellation Energy Group, Inc.		430		(13,171	)
Great Plains Energy, Inc.		700		(13,573	)
Duke Energy Corp.		801		(14,266	)
Integrys Energy Group, Inc.		300		(14,553	)
Vectren Corp.		610		(15,482	)
Sempra Energy		300		(15,744	)
Dominion Resources, Inc.		410		(17,515	)
PPL Corp.		670		(17,634	)
Wisconsin Energy Corp.		300		(17,658	)
Public Service Enterprise Group, Inc.		560		(17,814	)
Exelon Corp.		430		(17,905	)
MDU Resources Group, Inc.		891		(18,061	)
Southern Co.		480		(18,350	)
Energen Corp.		390		(18,821	)
National Fuel Gas Co.		320		(20,998	)
AES Corp.*		2,411		(29,366	)
Ormat Technologies, Inc.		1,130		(33,425	)
Calpine Corp.*		2,511		(33,497	)
AGL Resources, Inc.		2,380		(85,323	)
FirstEnergy Corp.		12,145		(449,608	)
Total Utilities				(902,137	)
FINANCIALS — (6.9)%
Moody’s Corp.		1		(27	)
Regions Financial Corp.		40		(280	)
State Street Corp.		10		(463	)
Popular, Inc.*		190		(597	)
U.S. Bancorp		30		(809	)
SEI Investments Co.		50		(1,189	)
Commerce Bancshares, Inc.		32		(1,252	)
Bank of Hawaii Corp.		40		(1,888	)
RenaissanceRe Holdings Ltd.		30		(1,911	)
MSCI, Inc. — Class A*		50		(1,948	)
Weyerhaeuser Co.		110		(2,082	)
Nationwide Health Properties, Inc.		70		(2,547	)
SunTrust Banks, Inc.		100		(2,951	)
Wilmington Trust Corp.		690		(2,995	)
SLM Corp.*		240		(3,022	)
Cullen		50		(3,056	)
Fidelity National Financial, Inc. — Class A		240		(3,283	)
Vornado Realty Trust		50		(4,167	)
Loews Corp.		110		(4,280	)
American National Insurance Company		50		(4,281	)
City National Corp.		70		(4,295	)
Prudential Financial, Inc.		80		(4,697	)
First Horizon National Corp.*		407		(4,797	)
Interactive Brokers Group, Inc. — Class A		270		(4,811	)
Principal Financial Group, Inc.		150		(4,884	)
KeyCorp		553		(4,894	)
Affiliated Managers Group, Inc.*		50		(4,961	)
Goldman Sachs Group, Inc.		30		(5,045	)
M&T Bank Corp.		60		(5,223	)
TD Ameritrade Holding Corp.		300		(5,697	)
Bank of New York Mellon Corp.		190		(5,738	)
Allstate Corp.		180		(5,738	)
Charles Schwab Corp.		340		(5,817	)
Janus Capital Group, Inc.		450		(5,837	)
Hartford Financial Services Group, Inc.		230		(6,093	)
Plum Creek Timber Company, Inc.		170		(6,367	)
Franklin Resources, Inc.		60		(6,673	)
Synovus Financial Corp.		2,741		(7,236	)
Equity Residential		160		(8,312	)
BOK Financial Corp.		160		(8,544	)
Host Hotels & Resorts, Inc.		510		(9,114	)
American Express Co.		240		(10,301	)
Wells Fargo & Co.		350		(10,847	)
Everest Re Group Ltd.		140		(11,875	)
CB Richard Ellis Group, Inc. — Class A*		610		(12,493	)
TCF Financial Corp.		870		(12,885	)
Kimco Realty Corp.		720		(12,989	)
Jefferies Group, Inc.		510		(13,581	)
Mercury General Corp.		330		(14,193	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 45

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

MULTI-HEDGE STRATEGIES FUND December 31, 2010

	Shares		Value
AvalonBay Communities, Inc.		130	$	(14,631	)
Liberty Property Trust		470		(15,002	)
Taubman Centers, Inc.		300		(15,144	)
Fulton Financial Corp.		1,481		(15,314	)
St. Joe Co.*		710		(15,514	)
ProLogis		1,111		(16,043	)
TFS Financial Corp.		1,811		(16,335	)
Progressive Corp.		841		(16,711	)
White Mountains Insurance Group Ltd.		50		(16,780	)
Regency Centers Corp.		410		(17,318	)
W.R. Berkley Corp.		650		(17,797	)
Duke Realty Corp.		1,431		(17,830	)
Greenhill & Company, Inc.		220		(17,970	)
NYSE Euronext		600		(17,988	)
Arthur J Gallagher & Co.		640		(18,611	)
Markel Corp.*		50		(18,906	)
Brown & Brown, Inc.		791		(18,937	)
XL Group plc — Class A		871		(19,005	)
Marsh & McLennan Companies, Inc.		710		(19,411	)
Leucadia National Corp.		671		(19,580	)
Citigroup, Inc.*		4,143		(19,596	)
AON Corp.		440		(20,244	)
MetLife, Inc.		460		(20,442	)
People’s United Financial, Inc.		1,461		(20,469	)
Associated Banc-Corp.		1,501		(22,740	)
Lincoln National Corp.		840		(23,360	)
Comerica, Inc.		570		(24,077	)
Valley National Bancorp		1,770		(25,311	)
BB&T Corp.		991		(26,053	)
Hancock Holding Co.		3,360		(117,130	)
First Niagara Financial Group, Inc.		10,170		(142,177	)
Bank of Montreal		2,590		(149,106	)
Total Financials				(1,222,497	)
Total Common Stocks Sold Short (Proceeds $5,109,603)				(5,846,376	)
EXCHANGE TRADED FUNDS SOLD SHORT† - (12.7)%
iShares MSCI BRIC Index Fund		10		(491	)
iShares MSCI Singapore Index Fund		50		(693	)
iShares MSCI Belgium Investable Market Index Fund		179		(2,350	)
iShares MSCI Hong Kong Index Fund		130		(2,458	)
iShares MSCI Japan Index Fund		357		(3,895	)
iShares MSCI Taiwan Index Fund		286		(4,467	)
Market Vectors — Gold Miners ETF		108		(6,639	)
iShares MSCI Netherlands Investable Market Index Fund		600		(12,654	)
iShares MSCI France Index Fund		631		(15,428	)
iShares MSCI Mexico Investable Market Index Fund		460		(28,483	)
Powershares QQQ		591		(32,192	)
iShares MSCI Germany Index Fund		1,350		(32,319	)
iShares MSCI Spain Index Fund		1,120		(41,149	)
iShares MSCI Italy Index Fund		2,790		(45,700	)
iShares Russell 1000 Growth Index Fund		952		(54,512	)
iShares MSCI EMU Index Fund		2,790		(98,403	)
iShares MSCI EAFE Index Fund		1,852		(107,842	)
iShares Dow Jones US Real Estate Index Fund		1,957		(109,514	)
iShares Russell 1000 Value Index Fund		2,733		(177,290	)
iShares Russell 2000 Index Fund		5,940		(464,686	)
SPDR S&P 500 ETF Trust		7,949		(999,825	)
Total Exchange Traded Funds Sold Short (Proceeds $1,946,393)				(2,240,990	)
Total Securities Sold Short — (45.9)% (Proceeds $7,055,996)			$	(8,087,366	)
Cash & Other Assets, Less Liabilities - 59.7%				10,530,648
Total Net Assets - 100.0%			$	17,636,943

			Unrealized
	Contracts		Gain
COMMODITY FUTURES CONTRACTS PURCHASED†
September 2011 Coffee Futures Contracts (Aggregate Value of Contracts $617,794)		7	$	104,806
July 2011 Sugar #11 Futures Contracts (Aggregate Value of Contracts $557,323)		19		102,912
September 2011 Soybean Futures Contracts (Aggregate Value of Contracts $537,400)		8		67,704
December 2011 Cotton #2 Futures Contracts (Aggregate Value of Contracts $553,190)		11		59,961
June 2011 Live Cattle Futures Contracts (Aggregate Value of Contracts $743,070)		17		55,751
May 2011 Soybean Oil Futures Contracts (Aggregate Value of Contracts $246,708)		7		54,020
July 2011 Wheat Futures Contracts (Aggregate Value of Contracts $416,000)		10		46,516
October 2011 RBOB Gasoline Futures Contracts (Aggregate Value of Contracts $499,254)		5		41,275

46 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (continued)

MULTI-HEDGE STRATEGIES FUND December 31, 2010

			Unrealized
	Contracts		Gain (LOSS)
April 2011 Heating Oil Futures Contracts (Aggregate Value of Contracts $535,290)		5	$	38,772
December 2011 Copper Futures Contracts (Aggregate Value of Contracts $218,850)		2		27,394
September 2011 Corn Futures Contracts (Aggregate Value of Contracts $506,175)		17		27,032
October 2011 Lean Hogs Futures Contracts (Aggregate Value of Contracts $295,740)		9		18,509
March 2011 Silver Futures Contracts (Aggregate Value of Contracts $154,375)		1		16,957
February 2011 Gold 100 Oz Futures Contracts (Aggregate Value of Contracts $283,960)		2		9,016
April 2012 Natural Gas Futures Contracts (Aggregate Value of Contracts $292,860)		6		8,730
March 2011 LME Primary Aluminum Futures Contracts (Aggregate Value of Contracts $123,537)		2		7,880
September 2011 WTI Crude Futures Contracts (Aggregate Value of Contracts $94,250)		1		4,377
April 2011 LME Lead Futures Contracts (Aggregate Value of Contracts $63,738)		1		2,659
December 2011 LME Nickel Futures Contracts (Aggregate Value of Contracts $147,000)		1		986
(Total Aggregate Value of Contracts $6,886,514)			$	695,257
FUTURES CONTRACTS PURCHASED†
March 2011 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $2,189,320)		28	$	49,091
March 2011 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $2,173,200)		24		43,649
March 2011 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $3,854,000)		32		(129,843	)
April 2011 Volatility Index Futures Contracts (Aggregate Value of Contracts $3,309,800)		134		(412,402	)
(Total Aggregate Value of Contracts $11,526,320)			$	(449,505	)
FUTURES CONTRACTS SOLD SHORT†
January 2011 Volatility Index Futures Contracts (Aggregate Value of Contracts $1,786,500)		90	$	465,154
March 2011 U.S. Treasury 2 Year Note Futures Contracts (Aggregate Value of Contracts $12,916,391)		59		25,846
March 2011 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $4,203,412)		67		(89,021	)
(Total Aggregate Value of Contracts $18,906,303)			$	401,979
COMMODITY FUTURES CONTRACTS SOLD SHORT†
January 2012 Natural Gas Futures Contracts (Aggregate Value of Contracts $52,340)		1	$	6,833
April 2011 Live Cattle Futures Contracts (Aggregate Value of Contracts $269,280)		6		(6,216	)
May 2011 Coffee Futures Contracts (Aggregate Value of Contracts $269,944)		3		(6,966	)
December 2011 Natural Gas Futures Contracts (Aggregate Value of Contracts $254,000)		5		(7,406	)
May 2011 Wheat Futures Contracts (Aggregate Value of Contracts $287,262)		7		(8,423	)

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 47

CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded)

MULTI-HEDGE STRATEGIES FUND December 31, 2010

			Unrealized
	Contracts		Loss
May 2011 Corn Futures Contracts (Aggregate Value of Contracts $286,425)		9	$	(13,193	)
November 2011 Heating Oil Futures Contracts (Aggregate Value of Contracts $328,217)		3		(14,438	)
March 2011 Soybean Futures Contracts (Aggregate Value of Contracts $280,600)		4		(23,027	)
October 2011 Sugar #11 Futures Contracts (Aggregate Value of Contracts $300,608)		11		(34,586	)
April 2011 RBOB Gasoline Futures Contracts (Aggregate Value of Contracts $317,999)		3		(34,953	)
May 2011 Lean Hogs Futures Contracts (Aggregate Value of Contracts $439,800)		12		(41,414	)
March 2011 Cotton #2 Futures Contracts (Aggregate Value of Contracts $362,025)		5		(63,211	)
(Total Aggregate Value of Contracts $3,448,500)			$	(247,000	)
CURRENCY FUTURES CONTRACTS SOLD SHORT†
March 2011 Euro Currency Mini Futures Contracts (Aggregate Value of Contracts $167,013)		2	$	(622	)

*	Non-income producing security
†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	All or a portion of this security is pledged as short security collateral at December 31, 2010.
2	Repurchase Agreements — See Note 7.

ADR — American Depositary Receipt
plc — Public Limited Company
REIT — Real Estate Investment Trust

48 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

MULTI-HEDGE STRATEGIES FUND

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	13,245,128
Repurchase agreements, at value		1,948,533
Total investments		15,193,661
Segregated cash with broker		10,329,742
Cash		11,193
Receivables:
Variation margin		48,031
Securities sold		430,145
Dividends		18,078
Other assets		7,182
Total assets		26,038,032
Liabilities:
Securities sold short, at value		8,087,366
Payable for:
Securities purchased		280,978
Fund shares redeemed		2,421
Management fees		17,187
Short sales dividend		4,378
Prime broker interest		8,759
Total liabilities		8,401,089
Net assets	$	17,636,943
Net assets consist of:
Paid in capital	$	26,951,051
Undistributed net investment income		226
Accumulated net realized loss on investments		(10,517,138	)
Net unrealized appreciation on investments		1,202,804
Net assets	$	17,636,943
Capital shares outstanding		827,971
Net asset value per share	$	21.30
Investments, at cost	$	11,411,063
Repurchase agreements, at cost		1,948,533
Total cost	$	13,359,596
Securities sold short, proceeds		7,055,996

CONSOLIDATED STATEMENT OF OPERATIONS
Year Ended December 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $230)	$	302,249
Interest		8,100
Total investment income		310,349
Expenses:
Management fees		274,260
Trustees’ fees*		3,855
Short sales dividend expense		384,975
Prime broker interest expense		66,926
Miscellaneous		217
Total expenses		730,233
Less Expenses waived by Advisor		(26,208	)
Net expenses		704,025
Net investment loss		(393,676	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,167,630	)
Futures contracts		775,745
Foreign currency		(4	)
Securities sold short		2,346,575
Written options		(294,609	)
Net realized gain		660,077
Net change in unrealized appreciation (depreciation) on:
Investments		(19,175	)
Securities sold short		371,026
Futures contracts		367,252
Written options		39,566
Net change in unrealized appreciation (depreciation)		758,669
Net realized and unrealized gain		1,418,746
Net increase in net assets resulting from operations	$	1,025,070

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 49

MULTI-HEDGE STRATEGIES FUND

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(393,676	)	$	(231,919	)
Net realized gain on investments		660,077			146,778
Net change in unrealized appreciation (depreciation) on investments		758,669			(521,589	)
Net increase (decrease) in net assets resulting from operations		1,025,070			(606,730	)
Distributions to shareholders from:
Net investment income		—			(294,753	)
Total distributions to shareholders		—			(294,753	)
Capital share transactions:
Proceeds from sale of shares		17,748,501			28,020,716
Distributions reinvested		—			249,753
Cost of shares redeemed		(26,699,449	)		(37,182,855	)
Net decrease from capital share transactions		(8,950,948	)		(6,557,390	)
Net decrease in net assets		(7,925,878	)		(7,458,873	)
Net assets:
Beginning of year		25,562,821			33,021,694
End of year	$	17,636,943		$	25,562,821
Undistributed/(Accumulated) net investment income/(loss) at end of year	$	226		$	(923	)
Capital share activity:
Shares sold		883,835			1,531,493	†
Shares issued from reinvestment of distributions		—			14,585
Shares redeemed		(1,330,182	)		(1,846,273	)
Net decrease in shares		(446,347	)		(300,195	)

† Includes 116,314 shares issued in connection with Fund merger — see Note 12.

50 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

MULTI-HEDGE STRATEGIES FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010e			2009e			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	20.06		$	20.97		$	25.95		$	26.20		$	25.20
Income (loss) from investment operations:
Net investment income (loss)a		(.37	)		(.19	)		.16			.74			.80
Net gain (loss) on investments (realized and unrealized)		1.61			(.50	)		(5.02	)		.27			.87
Total from investment operations		1.24			(.69	)		(4.86	)		1.01			1.67
Less distributions from:
Net investment income		—			(.22	)		(.12	)		(1.00	)		(.30	)
Net realized gains		—			—			—			(.26	)		(.37	)
Total distributions		—			(.22	)		(.12	)		(1.26	)		(.67	)
Net asset value, end of period	$	21.30		$	20.06		$	20.97		$	25.95		$	26.20
Total Returnb		6.18	%		(3.28	%)		(18.72	%)		3.84	%		6.64	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,637		$	25,563		$	33,022		$	31,437		$	22,557
Ratios to average net assets:
Net investment income (loss)		(1.83	%)		(0.95	%)		0.67	%		2.72	%		3.08	%
Total expenses		3.39	%		1.87	%		1.81	%		1.69	%		1.70	%
Net expensesc		3.26	%		1.84	%		1.81	%		1.69	%		1.70	%
Operating expensesc,d		1.17	%		1.15	%		1.15	%		1.17	%		1.16	%
Portfolio turnover rate		845	%		1,074	%		1,447	%		421	%		309	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Net expense information reflects the expense ratios after expense waivers, as applicable.
d	Operating expenses exclude interest and dividend expense from securities sold short.
e	Consolidated

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 51

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

COMMODITIES STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate to the performance of a benchmark for commodities. The Fund’s current benchmark is the S&P GSCI™ Commodity Index (formerly known as the S&P GSCI Total Return Index).

Inception: September 30, 2005

For the one-year period ended December 31, 2010, the Fund returned 8.03%, compared with 9.00% for its benchmark, the S&P GSCI^TM Commodity Index. The GSCI was in negative territory for much of the year, before strong growth in the fourth quarter helped push the index to a positive return for the year. Agricultural futures prices led the way, with cotton up almost 100% and coffee up 66% for the year. The commodities contributing most to the positive returns were Brent crude, cotton, copper, corn and soybeans. The commodities contributing most to negative returns were natural gas, zinc, cocoa and crude oil.

Derivatives in the Fund are used to provide exposure to the composition of the benchmark in the most efficient manner, as well as to provide liquidity.

Performance displayed represents past performance which is no guarantee of future results.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

The Fund invests principally in derivative investments such as equity index swap agreements, futures contracts, and options on index futures.

52 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance
September 30, 2005 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(09/30/05)
COMMODITIES STRATEGY FUND		8.03	%		-7.94	%		-9.67	%
S&P 500 INDEX		15.06	%		2.29	%		2.58	%
S&P GSCI COMMODITY INDEX		9.00	%		-5.69	%		-7.57	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and the S&P GSCI Commodity Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 53

CONSOLIDATED SCHEDULE OF INVESTMENTS	December 31, 2010
COMMODITIES STRATEGY FUND

	Face
	Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 37.5%
Federal Home Loan Bank1
0.07% due 01/05/11	$	1,000,000	$	999,992
0.07% due 01/21/11		1,000,000		999,959
Freddie Mac2
0.05% due 01/03/11		1,000,000		999,997
Federal Farm Credit Bank1
0.15% due 01/05/11		1,000,000		999,997
Fannie Mae2
0.09% due 01/05/11		1,000,000		999,990
Farmer Mac1
0.16% due 01/12/11		1,000,000		999,986
Total Federal Agency Discount Notes (Cost $5,999,872)				5,999,921
REPURCHASE AGREEMENTS††,3 - 56.3%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11		2,307,405		2,307,405
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		2,300,695		2,300,695
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		2,202,094		2,202,094
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		2,202,094		2,202,094
Total Repurchase Agreements (Cost $9,012,288)				9,012,288
Total Investments - 93.8% (Cost $15,012,160)			$	15,012,209
Cash & Other Assets, Less Liabilities - 6.2%				993,717
Total Net Assets - 100.0%			$	16,005,926
			Unrealized
	Contracts		Gain
COMMODITY FUTURES CONTRACTS PURCHASED†
January 2011 Goldman Sachs IDX Futures Contracts (Aggregate Value of Contracts $14,423,500)		91	$	564,368
March 2011 WTI Crude Futures Contracts (Aggregate Value of Contracts $1,748,760)		19		149,774
(Total Aggregate Market Value of Contracts $16,172,260)			$	714,142

†	Value determined based on Level 1 inputs — See Note 8.
††	Value determined based on Level 2 inputs — See Note 8.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
3	Repurchase Agreements — See Note 7.

54 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

COMMODITIES STRATEGY FUND

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	5,999,921
Repurchase agreements, at value		9,012,288
Total investments		15,012,209
Segregated cash with broker		789,375
Receivables:
Variation margin		287,275
Fund shares sold		7,038
Interest		28
Total assets		16,095,925
Liabilities:
Payable for:
Fund shares redeemed		56,228
Management fees		10,092
Custodian fees		460
Transfer agent/maintenance fees		3,364
Investor service fees		3,364
Portfolio accounting fees		1,346
Other		15,145
Total liabilities		89,999
Net assets	$	16,005,926
Net assets consist of:
Paid in capital	$	32,704,078
Accumulated net investment loss		(316,416	)
Accumulated net realized loss on investments		(17,095,927	)
Net unrealized appreciation on investments		714,191
Net assets	$	16,005,926
Capital shares outstanding		1,177,612
Net asset value per share	$	13.59
Investments, at cost	$	5,999,872
Repurchase agreements, at cost		9,012,288
Total cost	$	15,012,160
CONSOLIDATED STATEMENT OF OPERATIONS Year Ended December 31, 2010
Investment Income:
Interest	$	18,912
Total investment income		18,912
Expenses:
Management fees		129,909
Transfer agent and administrative fees		38,872
Investor service fees		38,872
Portfolio accounting fees		15,549
Trustees’ fees*		2,917
Audit and service fees		14,680
Miscellaneous		18,156
Total expenses		258,955
Less Expenses waived by Advisor		(13,352	)
Net expenses		245,603
Net investment loss		(226,691	)
Net Realized And Unrealized Gain (loss):
Net realized gain (loss) on:
Investments		1,083,706
Futures contracts		2,298,589
Net realized gain		3,382,295
Net change in unrealized appreciation (depreciation) on:
Investments		(3,395,069	)
Futures contracts		643,126
Net change in unrealized appreciation (depreciation)		(2,751,943	)
Net realized and unrealized gain		630,352
Net increase in net assets resulting from operations	$	403,661

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 55

COMMODITIES STRATEGY FUND

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

	Year Ended			Year Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment loss	$	(226,691	)	$	(221,532	)
Net realized gain (loss) on investments		3,382,295			(1,534,044	)
Net change in unrealized appreciation (depreciation) on investments		(2,751,943	)		3,648,227
Net increase in net assets resulting from operations		403,661			1,892,651
Distributions To Shareholders From:
Net investment income		—			(362,231	)
Total distributions to shareholders		—			(362,231	)
Capital Share Transactions:
Proceeds from sale of shares		25,577,179			39,045,949
Distributions reinvested		—			362,231
Cost of shares redeemed		(31,361,210	)		(35,333,621	)
Net increase (decrease) from capital share transactions		(5,784,031	)		4,074,559
Net increase (decrease) in net assets		(5,380,370	)		5,604,979
Net Assets:
Beginning of year		21,386,296			15,781,317
End of year	$	16,005,926		$	21,386,296
Accumulated net investment loss at end of year	$	(316,416	)	$	(82,627	)
Capital share activity:
Shares sold		2,072,547			3,365,908
Shares issued from reinvestment of distributions		—			29,118
Shares redeemed		(2,595,020	)		(3,070,935	)
Net increase (decrease) in shares		(522,473	)		324,091

56 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

COMMODITIES STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010d			2009d			2008			2007			2006
Per Share Data
Net asset value, beginning of period	$	12.58		$	11.47		$	23.78		$	18.15		$	22.10
Income (loss) from investment operations:
Net investment income (loss)a		(.17	)		(.13	)		.15			.71			.50
Net gain (loss) on investments (realized and unrealized)		1.18			1.45			(11.69	)		4.92			(4.45	)
Total from investment operations		1.01			1.32			(11.54	)		5.63			(3.95	)
Less distributions from:
Net investment income		—			(.21	)		(.77	)		—			—
Total distributions		—			(.21	)		(.77	)		—			—
Net asset value, end of period	$	13.59		$	12.58		$	11.47		$	23.78		$	18.15
Total Returnb		8.03	%		11.56	%		(49.02	%)		31.02	%		(17.87%	)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,006		$	21,386		$	15,781		$	43,624		$	20,269
Ratios to average net assets:
Net investment income (loss)		(1.46	%)		(1.10	%)		0.56	%		3.52	%		2.34	%
Total expenses		1.67	%		1.58	%		1.50	%		1.48	%		1.50	%
Net expensesc		1.58	%		1.46	%		1.29	%		1.28	%		1.31	%
Portfolio turnover rate		69	%		359	%		427	%		346	%		109	%

a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
b	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
c	Net expense information reflects the expense ratios after expense waivers, as applicable.
d	Consolidated

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 57

NOTES TO FINANCIAL STATEMENTS

1. Organization, Consolidation of Subsidiary, and Significant Accounting Policies

Organization

The Rydex Variable Trust (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company and is authorized to issue an unlimited number of no par value shares. The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.

At December 31, 2010, the Trust consisted of fifty-eight separate Funds. This report covers the Alternatives Funds (the “Funds”), while the other Funds are contained in separate reports.

The Alternative Strategies Allocation Fund is a “fund of funds,” which means that the Fund seeks to achieve its investment objective by investing principally in a diversified portfolio of affiliated and unaffiliated funds (the “underlying funds”) instead of individual securities.

Valu-Trac Investment Management Limited served as sub-advisor to the International Long Short Select Fund through July 30, 2010, at which point in time Security Global Investors, LLC served as the investment sub-advisor to the Fund. Security Global Investors (“SGI”) is responsible for the development and ongoing maintenance of the investment management strategy utilized by that Fund.

SGI provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (“RDL”) acts as principal underwriter for the Trust. SGI, RFS and RDL are affiliated entities.

Consolidation of Subsidiary

The consolidated financial statements of the Managed Futures Strategy, Multi-Hedge Strategies, and Commodities Strategy Funds include the accounts of a wholly-owned and controlled Cayman Islands subsidiary (the “Subsidiary”). Significant intercompany accounts and transactions have been eliminated in consolidation for the Funds.

The Funds may invest up to 25% of their total assets in the Subsidiary which acts as an investment vehicle in order to effect certain investments consistent with the Funds’ investment objectives and policies.

A summary of each Fund’s investment in its respective Subsidiary is as follows:

					% of Total
			Subsidiary		Net Assets
	Inception		Net Assets at		of the Fund at
	Date of		December 31,		December 31,
	Subsidiary		2010		2010
Managed Futures Strategy Fund		11/07/08	$	2,882,626		18.4	%
Multi-Hedge Strategies Fund		04/15/09		2,039,995		11.6	%
Commodities Strategy Fund		07/21/09		3,331,435		20.8	%

Significant Accounting Policies

The following significant accounting policies are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

A. Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date.

Listed options held by the Trust are valued at the Official Settlement Price listed by the exchange, as of 4:00 p.m. Long options are valued using the bid price and short options are valued using the ask price. In the event that a settlement price is not available, fair valuation is enacted. Over-the-counter options held by the Trust are valued using the average bid price (for long options), or average ask price (for short options) obtained from one or more security dealers.

The value of futures contracts purchased and sold by the Trust is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the last quoted sales price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

Short-term debt securities, with a maturity of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.

Open-ended investment companies (“Mutual Funds”) are valued at their NAV as of the close of business, on the valuation date. Exchange Traded Funds (“ETFs”) and closed-end investment companies are valued at the last quoted sales price.

Investments for which market quotations are not readily available are fair valued as determined in good faith by SGI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a)

58 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related markets.

B. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income.

Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. When a Fund engages in a short sale of an equity or fixed income security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales. The Fund is exposed to market risk based on the amount, if any, that the market value of the security exceeds the market value of the securities in the segregated account. Fees, if any, paid to brokers to borrow securities in connection with short sales are considered part of the cost of short sale transactions. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the treasury obligation to the lender and record this as an expense. Short dividends or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short or incur rebate charges to borrow certain securities.

E. Managed Futures Strategy Fund invests in options to gain index exposure. Upon the purchase of an option, the premium paid is recorded as an investment, the value of which is marked-to-market daily. If a purchased option expires, the Fund realizes a loss in the amount of the cost of the option. When the Fund enters into a closing sale transaction, it realizes a gain or loss depending on whether the proceeds from the closing sale transaction are greater or less than the cost of the option. If the Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale will be decreased by the premium originally paid. When the Fund exercises a call option, the cost of the security purchased by the Fund upon exercise increases by the premium originally paid.

Multi-Hedge Strategies Fund writes (sells) options for hedging, income and speculation purposes. When the Fund writes (sells) an option, an amount equal to the premium received is entered in that Fund’s accounting records as an asset and equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. When a written option expires, or if the Fund enters into a closing purchase transaction, it realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold).

F. Managed Futures Strategy Fund and Commodities Strategy Fund invest in futures for liquidity and to gain index exposure. U.S. Long Short Momentum Fund also invests in futures for reasons mentioned above and as a hedge, while Multi-Hedge Strategies Fund invests in futures for income, hedging and speculation. These funds invest in stock or bond index futures, commodity futures, currency futures, or a combination of the four. Futures contracts are contracts for delayed delivery of securities at a specified future delivery date and at a specific price. Upon entering into a contract, these Funds deposit and maintain as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Funds as unrealized gains or losses. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

G. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies and currency gains or losses realized between the trade and settlement dates on investment transactions. Net unrealized exchange gains and losses arise from changes in the fair values of assets and liabilities other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

the RYDEX|SGI variable trust annual report | 59

NOTES TO FINANCIAL STATEMENTS (continued)

H. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

I. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate. Segregated cash with the broker is held as collateral for investments in derivative instruments such as futures contracts and index swap agreements.

J. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments

As part of its investment strategy, the Funds utilized short sales and a variety of derivative instruments, including options, futures and options on futures. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statement of Assets and Liabilities.

A short sale is a transaction in which a Fund sells an equity or fixed income security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, that Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, that Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

The risk associated with purchasing options is limited to the premium originally paid. The risk in writing a covered call option is that a Fund may forego the opportunity for profit if the market price of the underlying security increases and the option is exercised. The risk in writing a covered put option is that a Fund may incur a loss if the market price of the underlying security decreases and the option is exercised. In addition, there is the risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market or, for over-the-counter options, because of the counterparty’s inability to perform. There are several risks in connection with the use of futures contracts. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

In conjunction with the use of short sales, options, futures and options on futures, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each Fund.

The risks inherent in the use of short sales, options, futures contracts and options on futures contracts, include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; iii) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles require disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations.

During the year ended December 31, 2010, Funds sought to achieve their investment objectives by investing in currency, and financial-linked derivative instruments, including futures and options on futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Funds’ net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage of Fund’s
	net assets on a daily basis
Fund	Long			Short
U.S. Long Short Momentum Fund		—			5	%
Managed Futures Strategy Fund		60	%		45	%
Multi-Hedge Strategies Fund		105	%		130	%
Commodities Strategy Fund		100	%		—

60 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a summary of the location of derivative investments on the Fund’s Statements of Assets and Liabilities as of December 31, 2010:

	Location on the Statements of Assets and Liabilities
Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency/Commodity/Interest Rate contracts	Variation margin	Variation margin

The following is a summary of the Funds’ derivative instruments categorized by primary risk exposure at December 31, 2010:

Asset Derivative Investments Value
	Futures		Futures		Futures		Futures
	Equity		Currency		Commodity		Interest Rate		Total Value at
Fund	Contracts*		Contracts*		Contracts		Contracts		December 31, 2010
U.S. Long Short Momentum Fund	$	—	$	—	$	—	$	—	$	—
International Long Short Select Fund		—		—		—		—		—
Alternative Strategies Allocation Fund		—		—		—		—		—
Managed Futures Strategy Fund		—		38,365		677,850		54,727		770,942
Multi-Hedge Strategies Fund		557,894		—		702,090		25,846		1,285,830
Commodities Strategy Fund		—		—		714,142		—		714,142

Liability Derivative Investments Value
	Futures		Futures		Futures		Futures
	Equity		Currency		Commodity		Interest Rate		Total Value at
Fund	Contracts*		Contracts*		Contracts		Contracts		December 31, 2010
U.S. Long Short Momentum Fund	$	55,096	$	—	$	—	$	—	$	55,096
International Long Short Select Fund		—		—		—		—		—
Alternative Strategies Allocation Fund		—		—		—		—		—
Managed Futures Strategy Fund		—		41,003		3,459		—		44,462
Multi-Hedge Strategies Fund		501,423		622		253,833		129,843		885,721
Commodities Strategy Fund		—		—		—		—		—

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund’s Statements of Operations for the year ended December 31, 2010:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts
	Net realized gain (loss) on written options
	Net realized gain (loss) on investments
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net change in unrealized appreciation (depreciation) on written options
Currency/Commodity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure for the year ended December 31, 2010:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations
	Futures			Written			Purchased			Futures			Futures			Futures
	Equity			Options			Options			Currency			Commodity			Interest Rate
Fund	Contracts*			Contracts*			Contracts*			Contracts*			Contracts			Contracts			Total
U.S. Long Short Momentum Fund	$	(580,780	)	$	—		$	—		$	—		$	—		$	—		$	(580,780	)
International Long Short Select Fund		(1,290,530	)		—			—			(6,520	)		—			—			(1,297,050	)
Alternative Strategies Allocation Fund		—			—			—			—			—			—			—
Managed Futures Strategy Fund		—			(2,195	)		—			(528,776	)		(1,223,485	)		(352,132	)		(2,106,588	)
Multi-Hedge Strategies Fund		1,171,648			(294,609	)		(3,190	)		(205,648	)		(226,835	)		36,580			477,946
Commodities Strategy Fund		—			—			—			—			2,298,589			—			2,298,589

the RYDEX|SGI variable trust annual report | 61

NOTES TO FINANCIAL STATEMENTS (continued)

Change in Unrealized Appreciation (Depreciation) on Derivative
Investments Recognized in the Statement of Operations
	Futures			Written		Futures			Futures		Futures
	Equity			Options		Currency			Commodity		Interest Rate
Fund	Contracts*			Contracts*		Contracts*			Contracts		Contracts			Total
U.S. Long Short Momentum Fund	$	(55,096	)	$	—	$	—		$	—	$	—		$	(55,096	)
International Long Short Select Fund		66,629			—		(265,569	)							(198,940	)
Alternative Strategies Allocation Fund		—			—		—			—		—			—
Managed Futures Strategy Fund		—			—		485,521			252,781		236,578			974,880
Multi-Hedge Strategies Fund		(59,747	)		39,566		99,481			400,551		(73,033	)		406,818
Commodities Strategy Fund		—			—		—			643,126		—			643,126

4. Written Options

Transactions in options written during the year ended December 31, 2010, were as follows:

	Multi-Hedge Strategies Fund
	Number of			Premium
	Contracts			Amount
Options outstanding at December 31, 2009		93		$	139,381
Options written		652			374,196
Options terminated in closing purchase transactions		(152	)		(467,572	)
Options expired		(496	)		(5,367	)
Options exercised		(97	)		(40,638	)
Options outstanding at December 31, 2010		—		$	—

5. Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays SGI investment advisory fees calculated at an annualized rate of 0.75% of the average daily net assets of the Commodities Strategy Fund; 0.90% of the average daily net assets of the U.S. Long Short Momentum Fund, the International Long Short Select Fund and the Managed Futures Strategy Fund, and 1.15% of the average daily net assets of the Multi-Hedge Strategies Fund. The Alternative Strategies Allocation Fund does not pay SGI a management fee.

SGI has contractually agreed to waive the management fee it receives from each Subsidiary. This undertaking will continue in effect for so long as each Fund invests in the Subsidiary, and may not be terminated by SGI unless SGI obtains the prior approval of the Fund’s Board of Trustees for such termination. In any event, this undertaking will continue through April 30, 2011.

As part of its agreement with the Trust, SGI will pay all expenses of the Multi-Hedge Strategies Fund including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with execution of portfolio transactions, short dividend expenses, and extraordinary expenses.

SGI manages the investment and reinvestment of the assets of the Alternative Strategies Allocation Fund in accordance with the investment objectives, policies, and limitations of the Fund. As part of its agreement with the Trust, SGI will pay all expenses of the Fund, including the cost of transfer agency, fund administration, audit and other services, excluding interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the execution of portfolio transactions, short dividend expenses, and extraordinary expenses. The Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other underlying fund expenses) of the underlying funds in which the Fund invests.

RFS provides transfer agent and administrative services to the Funds for fees calculated at an annualized rate of 0.25% of the average daily net assets of each Fund. Fees related to the Multi-Hedge Strategies and Alternative Strategies Allocation Funds are paid by SGI, as previously noted.

RFS provides accounting services to the Trust calculated at an annualized rate of 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each Fund. Fees related to the Multi-Hedge Strategies and Alternative Strategies Allocation Funds are paid by SGI, as previously noted.

SGI engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets. Certain expenses allocated to the Multi-Hedge Strategies and Alternative Strategies Allocation Funds are paid by SGI, as previously noted. Organizational and setup costs for new funds are paid by the Trust.

62 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

The Trust has adopted an Investor Services Plan for which the RDL and other firms that provide investor services (“Service Providers”) may receive compensation. The Funds will pay investor service fees to RDL at an annual rate not to exceed 0.25% of average daily net assets. RDL, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

Certain officers and trustees of the Trust are also officers of SGI, RFS and RDL.

6. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (fiscal years 2007 — 2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

The Managed Futures Strategy Fund, Commodities Strategy Fund and Multi-Hedge Strategies Fund intend to invest up to 25% of their assets in the Subsidiary which is expected to provide the Fund with exposure to the commodities markets within the limitations of the federal tax requirement under Subchapter M of the Code. The Managed Futures Strategy Fund, Commodities Strategy Fund and Multi-Hedge Strategies Fund have received a private letter ruling from the IRS that concludes that the income the Funds receive from the Subsidiary will constitute qualifying income for purposes of Subchapter M of the Code. The Subsidiary will be classified as a corporation for U.S. federal income tax purposes. A foreign corporation, such as the Subsidiary, will generally not be subject to U.S. federal income taxation unless it is deemed to be engaged in a U.S. trade or business.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales, losses deferred due to post-October losses, and unsettled short sales.

Permanent book and tax basis differences, if any, will result in reclassifications. This includes net operating losses not utilized during the current period and capital loss carryforward expired or permanently lost due to limitations in the Internal Revenue Code. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

The Funds’ tax basis capital gains and losses are determined only at the end of each fiscal year. Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.

For the year ended December 31, 2010, the following capital loss carryforward amounts were used or were permanently lost due to loss limitation rules in Section 382 of the Internal Revenue Code:

Fund	Amount
U.S. Long Short Momentum Fund	$	10,329,539
International Long Short Select Fund		2,050,375
Multi-Hedge Strategies Fund		592,977
Commodities Strategy Fund		1,036,134

The tax character of distributions paid during the year ended December 31, 2010 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
U.S. Long Short Momentum Fund	$	—	$	—	$	—
International Long Short Select Fund		46,141		—		46,141
Alternative Strategies Allocation Fund		17,835		—		17,835
Managed Futures Strategy Fund		—		—		—
Multi-Hedge Strategies Fund		—		—		—
Commodities Strategy Fund		—		—		—

The tax character of distributions paid during the year ended December 31, 2009 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
U.S. Long Short Momentum Fund	$	58,031	$	—	$	58,031
International Long Short Select Fund		89,971		—		89,971
Alternative Strategies Allocation Fund		—		—		—
Managed Futures Strategy Fund		—		—		—
Multi-Hedge Strategies Fund		294,753		—		294,753
Commodities Strategy Fund		362,231		—		362,231

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NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributable earnings/(accumulated losses) at December 31, 2010 was as follows:

	Undistributed		Undistributed		Net Unrealized
	Ordinary		Long-Term		Appreciation			Capital Loss
Fund	Income		Capital Gain		(Depreciation)			Carryforward1
U.S. Long Short Momentum Fund	$	—	$	—	$	6,175,964		$	(22,343,536	)
International Long Short Select Fund		—		—		494,984			(3,049,055	)
Alternative Strategies Allocation Fund		145,724		—		(74,345	)		(571,528	)
Managed Futures Strategy Fund		—		—		674,479			(690,543	)
Multi-Hedge Strategies Fund		—		—		1,121,724			(10,434,593	)
Commodities Strategy Fund		1,291,922		—		(894,146	)		(17,095,389	)

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

¹ A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows:

																Total
	Expires in			Expires in			Expires in			Expires in			Expires in			Capital Loss
Fund	2014			2015			2016			2017			2018			Carryforward
U.S. Long Short Momentum Fund	$	—		$	—		$	(22,343,536	)	$	—		$	—		$	(22,343,536	)
International Long Short Select Fund		—			—			(1,634,568	)		(2,257	)		(1,412,230	)		(3,049,055	)
Alternative Strategies Allocation Fund		—			—			(8,821	)		(360,763	)		(201,944	)		(571,528	)
Managed Futures Strategy Fund		—			—			—			(321,144	)		(369,399	)		(690,543	)
Multi-Hedge Strategies Fund		—			(1,587,959	)		(5,656,359	)		(3,190,275	)		—			(10,434,593	)
Commodities Strategy Fund		(2,785,045	)		—			(4,932,556	)		(9,377,788	)		—			(17,095,389	)

At December 31, 2010, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities, for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities, for which there was an excess of tax cost over value were as follows:

			Tax		Tax			Net
	Tax		Unrealized		Unrealized			Unrealized
Fund	Cost		Gain		Loss			Gain (Loss)
U.S. Long Short Momentum Fund	$	49,800,869	$	6,771,660	$	(595,696	)	$	6,175,964
International Long Short Select Fund		4,666,893		585,624		(34,465	)		551,159
Alternative Strategies Allocation Fund		7,583,684		66,076		(140,421	)		(74,345	)
Managed Futures Strategy Fund		14,861,258		88		—			88
Multi-Hedge Strategies Fund		13,488,824		1,757,958		(53,121	)		1,704,837
Commodities Strategy Fund		16,620,497		—		(1,608,288	)		(1,608,288	)

Post-October Losses Deferred

Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses realized between November 1 and December 31 of each year as occurring on the first day of the following tax year. For the year ended December 31, 2010, the following amounts of realized capital and currency losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2011:

Fund	Capital			Currency
International Long Short Select Fund	$	—		$	(7,234	)
Managed Futures Strategy Fund		(252,754	)		—
Commodities Strategy Fund		(539	)		—

7. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

64 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

The repurchase agreements executed by the joint account and outstanding at December 31, 2010, were as follows:

Counterparty	Terms of Agreement		Face Value		Market Value		Repurchase Price
Credit Suisse Group		0.10% due 01/03/11	$	116,166,211	$	116,166,211	$	116,166,533
Morgan Stanley		0.06% due 01/03/11		70,000,000		70,000,000		70,000,117
HSBC Group		0.16% due 01/03/11		67,000,000		67,000,000		67,000,298
Mizuho Financial Group, Inc.		0.13% due 01/03/11		67,000,000		67,000,000		67,000,242
					$	320,166,211	$	320,167,190

At December 31, 2010, the collateral for the repurchase agreements in the joint account was as follows:

Security Type	Maturity Dates	Range of Rates			Par Value		Market Value
U.S. Treasury Notes	11/15/19		3.38	%	$	114,216,700	$	118,489,764
U.S. Treasury Bills	02/24/11 - 11/17/11		0.00	%		108,335,400		108,283,700
U.S. TIP Bond	04/15/28		3.63	%		24,211,900		42,104,145
U.S. TIP Note	04/15/14		1.25	%		26,932,400		29,295,999
U.S. Treasury Bonds	08/15/20 - 05/15/39		4.25% - 8.75	%		27,718,800		28,396,387
							$	326,569,995

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

8. Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund will receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical investments.

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3 — significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2010:

			Level 1				Level 2
	Level 1		Other		Level 2		Other		Level 3
	Investments		Financial		Investments		Financial		Investments
Fund	In Securities		Instruments*		In Securities		Instruments*		In Securities		Total
Assets
U.S. Long Short Momentum Fund	$	55,042,280	$	—	$	926,553	$	—	$	8,000	$	55,976,833
International Long Short Select Fund		4,038,051		—		1,180,001		—		—		5,218,052
Alternative Strategies Allocation Fund		7,398,309		—		111,030		—		—		7,509,339
Managed Futures Strategy Fund		—		726,480		14,861,346		—		—		15,587,826
Multi-Hedge Strategies Fund		13,245,128		400,109		1,948,533		—		—		15,593,770
Commodities Strategy Fund		—		714,142		15,012,209		—		—		15,726,351

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NOTES TO FINANCIAL STATEMENTS (continued)

			Level 1				Level 2
	Level 1		Other		Level 2		Other		Level 3
	Investments		Financial		Investments		Financial		Investments
Fund	In Securities		Instruments*		In Securities		Instruments*		In Securities		Total
Liabilities
U.S. Long Short Momentum Fund	$	—	$	55,096	$	—	$	—	$	—	$	55,096
International Long Short Select Fund		1,580,301		—		—		—		—		1,580,301
Alternative Strategies Allocation Fund		—		—		—		—		—		—
Managed Futures Strategy Fund		—		—		—		—		—		—
Multi-Hedge Strategies Fund		8,087,366		—		—		—		—		8,087,366
Commodities Strategy Fund		—		—		—		—		—		—

* Other financial instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective January 1, 2010. This update applies to the Funds’ disclosures about transfers in and out of all Levels of the fair value hierarchy on a gross basis and the reasons for the transfers, as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 fair value hierarchy. Effective for interim and annual periods beginning after December 15, 2010, purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.

For the year ended December 31, 2010, there were no significant transfers between Levels.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value for the year ended December 31, 2010:

LEVEL 3 — Fair value measurement using significant unobservable inputs

	Securities			Total
U.S. Long Short Momentum Fund
Assets:
Beginning Balance	$	—		$	—
Total realized gains or losses included in earnings		(9,946	)		(9,946	)
Total unrealized gains or losses included in earnings		(134,158	)		(134,158	)
Purchases, sales, issuances, and settlements (net)		—			—
Transfers in and/or out of Level 3		152,104			152,104
Ending Balance	$	8,000		$	8,000

9. Securities Transactions

During the year ended December 31, 2010, purchases and sales of investment securities, excluding short-term and temporary cash investments, were:

	U.S. Long Short		International		Alternative		Managed Futures		Multi-Hedge
	Momentum		Long Short Select		Strategies		Strategy		Strategies		Commodities
	Fund		Fund		Allocation Fund		Fund		Fund		Strategy Fund
Purchases	$	179,627,573	$	9,627,331	$	12,774,700	$	—	$	30,886,899	$	2,602,617
Sales	$	197,248,422	$	16,397,374	$	10,324,581	$	—	$	29,673,013	$	9,923,261

10. Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33¹/₃% of a Fund’s net assets, 33¹/₃% of a Fund’s assets held by the Custodian or 33¹/₃% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. As of and for the year ended December 31, 2010, the Funds did not have any outstanding borrowings under this agreement.

11. Name Changes

Effective May 28, 2010, the All-Cap Opportunity Fund changed its name to U.S. Long Short Momentum Fund.

Effective June 7, 2010, the International Opportunity Fund changed its name to International Long Short Select Fund. The name changes did not have any impact on the Funds’ investment objectives, ticker and CUSIP.

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NOTES TO FINANCIAL STATEMENTS (concluded)

12. Fund Merger

On May 29, 2009, the Multi-Hedge Strategies Fund (formerly, the Absolute Return Strategies Fund) acquired all of the net assets of Hedged Equity Fund, a separate series of the Trust, in exchange for shares of the Multi-Hedge Strategies Fund, pursuant to an agreement and plan of reorganization approved by the Board of Trustees and approved by the shareholders of the Hedged Equity Fund. The primary reason for the transaction was to combine a smaller fund into a larger fund with a similar investment objective. The acquisition was accomplished through a combination of a tax-free exchange of Hedged Equity Fund shares (129,412) valued at $2,309,996 for respective shares of the Multi-Hedge Strategies Fund (116,314), with the remainder coming from capital transactions. For financial reporting purposes, the net assets received and shares issued by Multi-Hedge Strategies Fund were recorded at fair value; however, the Hedged Equity Fund’s cost of the investments and proceeds from short sales were carried forward to align ongoing reporting of Multi-Hedge Strategies Fund realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Hedged Equity Fund’s net assets on May 29, 2009 were $2,309,996, including $234,458 of unrealized appreciation. Hedged Equity Fund’s net assets were primarily comprised of investments with a fair value of $6,564,180, deposits with brokers related to short sales with a fair value of $1,680,116, obligations relating to short sales with a fair value of $1,935,482 and payable for shares redeemed of $4,489,375. The aggregate net assets of Multi-Hedge Strategies Fund immediately before and after the acquisition were $24,123,430 and $26,433,426, respectively.

The financial statements reflect the operations of the Multi-Hedge Strategies Fund for the period prior to the acquisition and the combined fund for the period subsequent to the fund merger. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Hedged Equity Fund that have been included in the combined fund’s Statement of Operations since the acquisition was completed. Assuming the acquisition had been completed on January 1, 2009, Multi-Hedge Strategies Fund proforma net investment income (loss), net gain (loss) on investments and net increase(decrease) in net assets from operations for the year ended December 31, 2009 would have been $(249,393), $(304,596) and $(650,619), respectively. Rydex Investments and its affiliates bore all of the expenses related to the reorganization.

13. Acquisition of Security Benefit Corporation

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors II, LLC (formerly PADCO Advisors II, Inc.), the Funds’ investment adviser (the “Investment Advisor”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Advisor (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction did not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreement with the Investment Advisor and any investment sub-advisory agreements entered on behalf of a Fund (together, the “Previous Agreements”). New investment advisory and sub-advisory agreements (“New Agreements”) were approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreements are substantially identical to the corresponding Previous Agreements, except with respect to the date of execution.

14. Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

15. Subsequent Events

Effective January 3, 2011, Rydex Advisors II, LLC, the Funds’ investment advisor was merged with and into Security Investors, LLC, which operates under the name SGI.

The foregoing internal restructuring is not expected to affect the investment advisory services rendered to the Funds, which will continue to be managed on a day-to-day basis by the same teams of portfolio managers. The investment philosophies, strategies, and processes of the Funds also will remain the same.

In order to implement the restructuring, technical amendments were made to the Funds’ investment advisory agreement with Rydex Advisors II, LLC, in order to reflect the change of the identity of the investment advisor. No other changes will be made to the investment advisory agreement of the Funds, and the fees and expenses of the Funds will remain the same.

the RYDEX|SGI variable trust annual report | 67

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
of the Rydex Variable Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of U.S. Long Short Momentum Fund (formerly All-Cap Opportunity Fund), International Long Short Select Fund (formerly International Opportunity Fund), Alternative Strategies Allocation Fund, Managed Futures Strategy Fund (consolidated), Multi-Hedge Strategies Fund (consolidated), and Commodities Strategy Fund (consolidated) (six of the series constituting the Rydex Variable Trust) (the “Funds”) as of December 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods presented in the three-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 26, 2008 expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds at December 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the years or periods presented in the three-year period then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 25, 2011

68 | the RYDEX|SGI variable trust annual report

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended December 31 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Change of Address

Effective January 17, 2011, the RYDEX | SGI office was moved to Four Irvington Centre, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

SGI Board Review and Approval of the Investment Advisory Agreements

At an in-person meeting of the Trust’s Board of Trustees held on January 28, 2010, called for the purpose of, among other things, voting on the approval of the investment advisory and sub-advisory agreements applicable to the series of the Trust (the “Funds”), the Trust’s Board of Trustees, including the Independent Trustees, unanimously approved the continuation for a two-year period the investment advisory agreements between the Trust and Rydex Advisors II, LLC (formerly, PADCO Advisors II, Inc., and referred to herein as “Rydex”). In reaching this conclusion, the Trustees requested and obtained from Rydex and each investment sub-adviser such information as the Trustees deemed reasonably necessary to evaluate the proposed renewal of the agreements. The Trustees carefully evaluated this information and were advised by legal counsel with respect to their deliberations.

In considering the approval of the investment advisory and sub-advisory agreements, the Independent Trustees evaluated a number of considerations, including, among others, (1) the nature, extent, and quality of the advisory services to be provided by Rydex; (2) the investment performance of the Funds and Rydex; (3) the costs of services provided by Rydex and the profits derived by Rydex from its relationship with the Funds; (4) a comparison of each Funds’ expense ratios and those of similarly situated funds; (5) benefits (such as soft dollars) to Rydex and its affiliates from their relationship with the Funds (and any corresponding benefits to the Funds); (6) other factors the Board deemed to be relevant. The Board also took into account other considerations that it believed, in light of the legal advice furnished to the Independent Trustees by their independent legal counsel and the Trustees’ own business judgment, to be relevant. Following its review, the Trust’s Board determined that the investment advisory agreement will enable Fund shareholders to obtain high quality services at a cost that is appropriate, reasonable and in the best interests of shareholders. Accordingly, the Trustees, including the Independent Trustees, unanimously approved the renewal of the investment advisory agreements based upon the following considerations, among others:

• The nature, extent and quality of the advisory services to be provided. The Board of Trustees concluded that Rydex is capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided in the past, Rydex’s management capabilities demonstrated with respect to the Funds and other mutual funds managed by Rydex, the professional qualifications and experience of Rydex and Rydex’s investment and management oversight processes. The Trustees also determined that Rydex proposed to provide investment and related services that were of the same quality and quantity as services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Fund. With respect to the Funds, the Trustees concluded on the basis of information compiled by Morningstar that Rydex and the investment sub-advisers had achieved investment performance that was acceptable, and competitive or superior relative to comparable funds over trailing periods.

• The cost of advisory services provided and the level of profitability. On the basis of the Board’s review of the fees to be charged by Rydex for investment advisory and other services, and the estimated profitability of Rydex’s relationship with the Funds, the Board concluded that the level of investment advisory fees and Rydex’s profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and Rydex and its affiliates. On the basis of comparative information compiled by Morningstar, the Trustees determined that the advisory fees and estimated overall expense ratio of each Fund are consistent with, and often below, industry medians, particularly with respect to mutual funds of comparable size.

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OTHER INFORMATION (Unaudited) (concluded)

• Whether the advisory fees reflect economies of scale. The Trustees concluded that the Funds’ investment advisory fees appropriately reflect the current economic environment for Rydex and the competitive nature of the mutual fund market.

• The extent to which economies of scale will be realized as the Fund grows. While the Funds’ investment advisory fees do not reduce should fund assets grow meaningfully, the Trustees determined that the investment advisory fees payable by the funds already reflect potential future economies of scale to some extent by virtue of their competitive levels (determined with reference to industry standards as reported by Lipper) and Rydex’s estimated profitability at current or foreseeable asset levels. The Trustees also considered that they will have the opportunity to periodically re-examine whether each Fund has achieved economies of scale, and the appropriateness of investment advisory fees payable to Rydex in the future.

70 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of SGI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

All Trustees and Officers may be reached c/o Security Global Investors, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds — 1997		150
Trustee, Chairman of the	Rydex Variable Trust — 1998
Board (1940)	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour	Rydex Series Funds — 1993		150
Trustee (1945)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton	Rydex Series Funds — 1995		150
Trustee (1941)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group
Werner E. Keller	Rydex Series Funds — 2005		150
Trustee (1940)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.	Rydex Series Funds — 2005		150
Trustee (1960)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville	Rydex Series Funds — 1997		150
Trustee (1942)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers	Rydex Series Funds — 1993		150
Trustee (1944)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Owner, Arrow Limousine

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nikolaos Bonos* Vice President and Treasurer (1963)	Senior Vice President, Security Investors, LLC and Vice President, Security Benefit Asset Management Holdings, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)

72 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS (concluded)

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Joanna M. Haigney Catalucci* Chief Compliance Officer and Secretary (1966)	Vice President, Security Benefit Asset Management Holdings, LLC; and Senior Vice President and Chief Compliance Officer, Security Investors, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present); Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Vice President, Security Investors, LLC (2010 to present); Vice President, Security Global Investors, LLC (2010 to 2011); Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration Rydex Investments (2001 to present)

* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments.

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805 King Farm Boulevard, Suite 600
Rockville, MD 20850
www.rydex-sgi.com
800.820.0888
RVAALTS-ANN-2-1210x1211

DECEMBER 31 , 2010 RYDEX VARIABLE TRUST ANNUAL REPORT ASSET ALLOCATION FUNDS ALL-ASSET CONSERVATIVE STRATEGY FUND ALL-ASSET MODERATE STRATEGY FUND ALL-ASSET AGGRESSIVE STRATEGY FUND

This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

Distributed by Rydex Distributors, LLC.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS	2
ABOUT SHAREHOLDERS’ FUND EXPENSES	4
ALL-ASSET CONSERVATIVE STRATEGY FUND	6
ALL-ASSET MODERATE STRATEGY FUND	12
ALL-ASSET AGGRESSIVE STRATEGY FUND	18
NOTES TO FINANCIAL STATEMENTS	24
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	31
OTHER INFORMATION	32
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	34

the RYDEX|SGI variable trust annual report | 1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

The U.S. economy continued a second year of recovery in 2010, but soft employment and housing markets combined to keep growth tepid. The consensus forecast for U.S. GDP growth was 2.8%, but a consumer spending rally may be needed for it to do better in 2011. Along with better economic reports on retail sales and jobless claims late in 2010, passage of federal legislation to extend Bush-era tax cuts and roll out new stimulus measures boosted equity markets, and prompted many economists to raise growth forecasts for 2011 to 3.5% or higher. Markets were also affected by a change in control of the House of Representatives and a renewed focus on cutting government spending and dealing with the budget deficit.

The U.S. Federal Reserve was responsible for much of the investor optimism that flowed through 2010, slowed only at mid-year by debt problems in Europe and the fading effects of U.S. government stimulus spending that played into fears of a double-dip recession. Concerns that the economy was not growing fast enough to lower an unemployment rate seemingly stuck at more than 9% led the U.S. central bank to signal in August that it would embark on a second round of bond buying in an attempt to keep long-term rates low enough to entice borrowers and spur economic activity. Although critics said such quantitative easing could flame inflation or lead to another asset bubble, the expectation of up to $600 billion in purchases corresponded with a third-quarter stock-market rally, which picked up more steam after the purchases actually began in November. Inflation turned out to be tame in 2010, with prices rising just 1.1%.

Government efforts to support the economy were a plug for stocks in 2010, as markets were carried to highs last seen more than two years ago—just before the collapse of Lehman Brothers. U.S. equity markets were up by double digits in 2010. The NASDAQ Composite Index* led major indices, up 17%, while the Dow Jones Industrial Average Index* and S&P 500^® Index* were up 14% and 15%, respectively. The sweet spot was small cap stocks, often a leader in economic recoveries, and the Russell 2000^® Index* was up 27%. Stocks in the consumer discretionary and industrials sectors, which benefited from exposure to awakening consumers as well as emerging markets and commodities, were up the most, 26% and 23% respectively, while the health care sector provided the weakest return at less than 1%.

Markets around the globe also benefited from the flood of cash unleashed by the U.S. Federal Reserve. Those in many European countries rose despite sovereign debt problems, with the broad STOXX Europe 600 Index* finishing up 9%. Strong economic recovery in Asia benefited markets from Indonesia to South Korea, although the region’s two largest economies, Japan and China, finished the year lower.

Yield-hungry fixed-income investors increasingly took on credit risk over the year, which was reflected in good performance across most sectors. Expectations about too-fast economic growth and possibly a tick up in inflation in the next few quarters prompted a late-year selloff in Treasuries. Although the Fed kept interest rates on hold all year, the yield on Treasuries rose, affecting mortgage rates, which unfortunately came at a time when reports were indicating that house prices continue to fall and a glut of foreclosures may hit the market over the next few years. Still, Treasuries performed well over the year, as fears of a double-dip recession and European debt woes eased. Among the best returns for the year: bonds in the U.S. intermediate high yield space and emerging market bonds. The Barclays Capital U.S. Aggregate Bond Index* returned about 6.5%.

Driven by demand from China and other fast-growing countries, commodities performed strongly in 2010, as investors appeared to be either encouraged by global recovery or worried about inflation. The Dow Jones-UBS Commodity Index* was up almost 17%; indicative of the strength of the raw materials rally was a record high price for copper and gold. While the metals and agriculture sub-indices were higher over the year, the energy index was lower. Oil finished 2010 around $91, rising about 15%.

The dollar gained on the euro in 2010, reflecting concern about Europe’s crisis in sovereign debt. The dollar weakened against many other currency counterparts around the world, falling most against the yen, as investors coped with record-low rates by searching for higher-yielding assets.

2 | the RYDEX|SGI variable trust annual report

LETTER TO OUR SHAREHOLDERS (concluded)

Many economists are calling for recovery to continue in 2011. Some feel there is a chance the economy could overheat, based on continued Fed intervention, causing a spike in interest rates, choking off recovery. Others view high levels of government and consumer debt as weights that could restrain the expansion, with growth insufficient to bring down unemployment. U.S. consumers are vital to a robust global recovery and their improving household incomes and debt burdens, along with rising global profits, should benefit many global regions. Stronger performance is forecast for emerging markets compared with developed economies, which are still shoring up their finances. In the fixed income market, strong corporate balance sheets and a low default rate should combine to further compress spreads, and position credit to outperform government paper in the year ahead.

Whether helping hedge or augment exposures to the equity or fixed-income markets, or introducing alternative assets and strategies to portfolios for overall diversification¹, our products are designed for a range of investment scenarios. Rydex|SGI is pleased to help investors navigate uncertain markets, and we appreciate the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

1	Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
*	Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

NASDAQ Composite Index — a capitalization-weighted index of more than 3,000 companies listed on the NASDAQ Stock Market.

The Dow Jones Industrial Average Index (DJIA) — a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

The Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large-, mid- and small-capitalization companies across 18 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The U.S. Aggregate rolls up into other Barclays Capital flagship indices such as the multi-currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt.

The Dow Jones-UBS Commodity Index aims to provide broadly diversified representation of commodity markets as an asset class. The index is made up of exchange-traded futures on physical commodities. The index represents 19 commodities, which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

the RYDEX|SGI variable trust annual report | 3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2010 and ending December 31, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

4 | the RYDEX|SGI variable trust annual report

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

							Beginning		Ending		Expenses
	Expense			Fund			Account Value		Account Value		Paid During
	Ratio1			Return			June 30, 2010		December 31, 2010		Period2
Table 1. Based on actual Fund return3
All-Asset Conservative Strategy Fund		0.00	%		8.97	%	$	1,000.00	$	1,089.70	$	—
All-Asset Moderate Strategy Fund		0.00	%		11.80	%		1,000.00		1,118.00		—
All-Asset Aggressive Strategy Fund		0.00	%		17.01	%		1,000.00		1,170.10		—
Table 2. Based on hypothetical 5% return (before expenses)
All-Asset Conservative Strategy Fund		0.00	%		5.00	%	$	1,000.00	$	1,025.21	$	—
All-Asset Moderate Strategy Fund		0.00	%		5.00	%		1,000.00		1,025.21		—
All-Asset Aggressive Strategy Fund		0.00	%		5.00	%		1,000.00		1,025.21		—

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.
3	Actual cumulative return at net asset value for the period June 30, 2010 to December 31, 2010.

the RYDEX|SGI variable trust annual report | 5

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

ALL-ASSET CONSERVATIVE STRATEGY FUND

OBJECTIVE: To primarily seek preservation of capital and, secondarily, to seek long-term growth of capital.

Inception: October 27, 2006

The Federal Reserve was the dominant force in the market for 2010. The year began with the break out of the sovereign debt crisis in Europe, and equity markets fell off on the news. After a brief recovery during earnings season, the markets were reminded of the European crisis and fell off again. However, the Fed’s announcement of its second quantitative easing policy changed the market sentiment. Beginning in late August, sentiment moved to risk-on. In the meantime, macroeconomic numbers showed the economy was improving. Despite the emergence of the Ireland crisis later and the crisis in other European countries still lingering, the equity and commodities markets ignored these developments, and more than covered the losses from earlier in the year. Short-term bond yields late in the year touched record-low levels.

Alternative investment strategies did not shine in this environment, and some momentum strategies that were designed to capture trend quicker actually lost money in the market swings.

For the one-year period ended December 31, 2010, the All-Asset Conservative Strategy Fund returned 7.40%, compared with its benchmark (32% Russell 3000^® Index, 8% MSCI EAFE Index and 60% Barclays Capital U.S. Aggregate Bond Index), which ended the year at 10.53%.

In the whole period, the Small Cap Growth Series, Mid Cap Growth Series and Small Cap Value Series contributed the most to performance. The International Long Short Select Fund, Equity Market Neutral Fund and Managed Futures Strategy Fund contributed the least to performance.

Derivatives in the Fund are used to provide the most efficient exposure to the components of the blended benchmark, as well as to provide liquidity.

Performance displayed represents past performance which is no guarantee of future results.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)
SBL Fund — Series E (U.S. Intermediate Bond Series)	19.2	%
RVT — U.S. Long Short Momentum Fund	13.3	%
SBL Fund — Series P (High Yield Series)	8.0	%
RVT — Multi-Hedge Strategies Fund	5.5	%
SBL Fund — Series B (Large Cap Value Series)	4.9	%
SBL Fund — Series Y (Large Cap Concentrated Growth Series)	4.9	%
RSF — Equity Market Neutral Fund — H Class	4.9	%
RSF — Long Short Interest Rate Strategy Fund — H Class	3.6	%
SBL Fund — Series D (Global Series)	2.3	%
RSF — Event Driven and Distressed Strategies Fund — H Class	2.1	%
Top Ten Total	68.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

6 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance:
October 27, 2006 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

				SINCE
	ONE			INCEPTION
	YEAR			(10/27/06)
ALL-ASSET CONSERVATIVE STRATEGY FUND		7.40	%		2.07	%
S&P 500 INDEX		15.06	%		0.00	%
SYNTHETIC ALL-ASSET CONSERVATIVE STRATEGY BENCHMARK*		10.53	%		4.22	%

* Benchmark reflects 32% Russell 3000^® Index, 8% MSCI EAFE Index^®, and 60% Barclays Capital U.S. Aggregate Bond Index.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index, Barclays Capital U.S. Aggregate Bond Index, Russell 3000 Index, and the MSCI EAFE Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 7

SCHEDULE OF INVESTMENTS	December 31, 2010
ALL-ASSET CONSERVATIVE STRATEGY FUND

	Shares		Value
MUTUAL FUNDS†,1 - 77.6%
SBL Fund — Series E (U.S. Intermediate Bond Series)		167,114	$	2,169,137
RVT — U.S. Long Short Momentum Fund*		117,653		1,505,953
SBL Fund — Series P (High Yield Series)		33,879		907,269
RVT — Multi-Hedge Strategies Fund*		29,336		624,867
SBL Fund — Series B (Large Cap Value Series)		21,311		549,602
SBL Fund — Series Y (Large Cap Concentrated Growth Series)		55,202		549,255
RSF — Equity Market Neutral Fund — H Class*		25,415		548,964
RSF — Long Short Interest Rate Strategy Fund — H Class*		15,757		408,742
SBL Fund — Series D (Global Series)		25,483		261,200
RSF — Event Driven and Distressed Strategies Fund — H Class*		8,968		231,733
SBL Fund — Series V (Mid Cap Value Series)		2,771		160,098
SBL Fund — Series J (Mid Cap Growth Series)*		5,299		159,242
RVT — Managed Futures Strategy Fund*		6,534		146,157
RSF — Alternative Strategies Fund — H Class*		4,385		111,324
RSF — Long Short Equity Strategy Fund — H Class*		4,310		111,023
RSF — Long/Short Commodities Strategy Fund — H Class		4,272		110,101
SBL Fund — Series X (Small Cap Growth Series)*		3,113		58,810
SBL Fund — Series Q (Small Cap Value Series)*		1,610		54,172
RVT — Commodities Strategy Fund*		3,618		49,165
RVT — Real Estate Fund		1,694		44,384
Total Mutual Funds (Cost $7,580,730)				8,761,198

	Face
	Amount		Value
REPURCHASE AGREEMENT††,2 - 21.6%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	2,434,961	$	2,434,961
Total Repurchase Agreement (Cost $2,434,961)				2,434,961
Total Investments - 99.2% (Cost $10,015,691)			$	11,196,159
Cash & Other Assets, Less Liabilities - 0.8%				88,362
Total Net Assets - 100.0%			$	11,284,521

			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
March 2011 MSCI EAFE Index Mini Futures Contracts (Aggregate Value of Contracts $580,160)		7	$	12,031
March 2011 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $156,380)		2		3,506
March 2011 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $1,204,375)		10		(30,407	)
(Total Aggregate Value of Contracts $1,940,915)			$	(14,870	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Affiliated security.
2	Repurchase Agreement — See Note 6.
	RSF — Rydex Series Funds
	RVT — Rydex Variable Trust
	SBL — Security Benefit Life

8 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALL-ASSET CONSERVATIVE STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments in affiliated issuers, at value	$	8,761,198
Repurchase agreements, at value		2,434,961
Total investments		11,196,159
Segregated cash with broker		81,000
Receivables:
Variation margin		6,511
Fund shares sold		1,126
Total assets		11,284,796
Liabilities:
Payable for:
Fund shares redeemed		275
Total liabilities		275
Net Assets	$	11,284,521
Net Assets Consist of:
Paid in capital	$	12,316,401
Distributions in excess of net investment income		(71,029	)
Accumulated net realized loss on investments		(2,126,449	)
Net unrealized appreciation on investments		1,165,598
Net assets	$	11,284,521
Capital shares outstanding		471,996
Net asset value per share	$	23.91
Investments in affiliated issuers, at cost	$	7,580,730
Repurchase agreements, at cost		2,434,961
Total cost	$	10,015,691

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends from affiliated issuers	$	17,921
Interest		2,177
Total investment income		20,098
Expenses:
Total expenses		—
Net investment income		20,098
Net Realized And Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		59,580
Realized gain distributions received from affiliated issuers		36,079
Futures contracts		(496	)
Net realized gain		95,163
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		700,355
Futures contracts		(14,870	)
Net change in unrealized appreciation (depreciation)		685,485
Net realized and unrealized gain		780,648
Net increase in net assets resulting from operations	$	800,746

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 9

ALL-ASSET CONSERVATIVE STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) in Net Assets From Operations:
Net investment income	$	20,098		$	170,172
Net realized gain (loss) on investments		95,163			(477,712	)
Net change in unrealized appreciation (depreciation) on investments		685,485			641,235
Net increase in net assets resulting from operations		800,746			333,695
Distributions to Shareholders From:
Net investment income		(286,468	)a		(147	)
Net realized gains		(4,516	)a		—
Total distributions to shareholders		(290,984	)		(147	)
Capital Share Transactions:
Proceeds from sale of shares		9,656,031			7,584,215
Distributions reinvested		290,984			147
Cost of shares redeemed		(7,343,088	)		(10,769,408	)
Net increase (decrease) from capital share transactions		2,603,927			(3,185,046	)
Net increase (decrease) in net assets		3,113,689			(2,851,498	)
Net Assets:
Beginning of year		8,170,832			11,022,330
End of year	$	11,284,521		$	8,170,832
Undistributed (distributions in excess of) net investment income at end of year	$	(71,029	)	$	174,688
Capital Share Activity:
Shares sold		417,702			354,336
Shares issued from reinvestment of distributions		12,388			6
Shares redeemed		(315,960	)		(503,699	)
Net increase (decrease) in shares		114,130			(149,357	)

^a For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

10 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALL-ASSET CONSERVATIVE STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006a
Per Share Data
Net asset value, beginning of period	$	22.83		$	21.73		$	25.68		$	25.09		$	25.00
Income (loss) from investment operations:
Net investment incomeb		.05			.40			.89			.61			.45
Net gain (loss) on investments (realized and unrealized)		1.63			.70			(3.67	)		1.00			(.02	)
Total from investment operations		1.68			1.10			(2.78	)		1.61			.43
Less distributions from:
Net investment income		(.59	)d		(—	)c		(.91	)		(.33	)d		(.33	)
Net realized gains		(.01	)d		—			(.26	)		(.69	)d		(.01	)
Total distributions		(.60	)		(—	)		(1.17	)		(1.02	)		(.34	)
Net asset value, end of period	$	23.91		$	22.83		$	21.73		$	25.68		$	25.09
Total Returne		7.40	%		5.06	%		(10.83	%)		6.45	%		1.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	11,285		$	8,171		$	11,022		$	5,439		$	432
Ratios to average net assets:
Net investment income		0.20	%		1.86	%		3.72	%		2.33	%		9.77	%g
Total expensesf		—			—	h		0.01	%		0.03	%		—
Portfolio turnover rate		165	%		291	%		314	%		395	%		18	%

a	Since the commencement of operations: October 27, 2006.
b	Net investment income per share was computed using average shares outstanding throughout the period.
c	Less than $.01 per share.
d	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.
e	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
f	Does not include expenses of the underlying funds in which the Fund invests.
g	Income ratio for the period ended December 31, 2006 was calculated for an abbreviated time frame and is not indicative of future class performance, and is annualized.
h	Less than .01%.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

ALL-ASSET MODERATE STRATEGY FUND

OBJECTIVE: To primarily seek growth of capital and, secondarily, to seek preservation of capital.

Inception: October 27, 2006

The Federal Reserve was the dominant force in the market for 2010. The year began with the break out of the sovereign debt crisis in Europe, and equity markets fell off on the news. After a brief recovery during earnings season, the markets were reminded of the European crisis and fell off again. However, the Fed’s announcement of its second quantitative easing policy changed the market sentiment. Beginning in late August, sentiment moved to risk-on. In the meantime, macroeconomic numbers showed the economy was improving. Despite the emergence of the Ireland crisis later and the crisis in other European countries still lingering, the equity and commodities markets ignored these developments, and more than covered the losses from earlier in the year. Short-term bond yields late in the year touched record-low levels.

Alternative investment strategies did not shine in this environment, and some momentum strategies that were designed to capture trend quicker actually lost money in the market swings.

For the one-year period ended December 31, 2010, the All-Asset Moderate Strategy Fund returned 7.86%, compared with its benchmark (48% Russell 3000^® Index, 12% MSCI EAFE Index and 40% Barclays Capital U.S. Aggregate Bond Index), which ended the year at 12.04%.

In the whole period, the Small Cap Growth Series, Mid Cap Growth Series and Small Cap Value Series contributed the most to performance. The International Long Short Select Fund, Equity Market Neutral Fund and Managed Futures Strategy Fund contributed the least to performance.

Derivatives in the Fund are used to provide the most efficient exposure to the components of the blended benchmark, as well as to provide liquidity.

Performance displayed represents past performance which is no guarantee of future results.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)
SBL Fund — Series E (U.S. Intermediate Bond Series)	18.4	%
RVT — U.S. Long Short Momentum Fund	16.7	%
SBL Fund — Series Y (Large Cap Concentrated Growth Series)	7.3	%
SBL Fund — Series D (Global Series)	7.1	%
SBL Fund — Series B (Large Cap Value Series)	6.8	%
RSF — Equity Market Neutral Fund — H Class	4.3	%
RVT — Multi-Hedge Strategies Fund	2.8	%
RSF — Long Short Interest Rate Strategy Fund — H Class	2.7	%
SBL Fund — Series J (Mid Cap Growth Series)	2.2	%
SBL Fund — Series V (Mid Cap Value Series)	2.2	%
Top Ten Total	70.5	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

12 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance:
October 27, 2006 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

				SINCE
	ONE			INCEPTION
	YEAR			(10/27/06)
ALL-ASSET MODERATE STRATEGY FUND		7.86	%		2.10	%
S&P 500 INDEX		15.06	%		0.00	%
SYNTHETIC ALL-ASSET MODERATE STRATEGY BENCHMARK*		12.04	%		2.99	%

* Benchmark reflects 48% Russell 3000^® Index, 12% MSCI EAFE Index^®, and 40% Barclays Capital U.S. Aggregate Bond Index.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index, Barclays Capital U.S. Aggregate Bond Index, Russell 3000 Index, and the MSCI EAFE Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report  |  13

SCHEDULE OF INVESTMENTS December 31, 2010

ALL-ASSET MODERATE STRATEGY FUND

	Shares		Value
MUTUAL FUNDS†,1 - 82.8%
SBL Fund — Series E (U.S. Intermediate Bond Series)		299,112	$	3,882,475
RVT — U.S. Long Short Momentum Fund*		275,564		3,527,221
SBL Fund — Series Y (Large Cap Concentrated Growth Series)		154,983		1,542,079
SBL Fund — Series D (Global Series)		145,561		1,492,004
SBL Fund — Series B (Large Cap Value Series)		55,715		1,436,879
RSF — Equity Market Neutral Fund — H Class*		41,862		904,225
RVT — Multi-Hedge Strategies Fund*		28,087		598,254
RSF — Long Short Interest Rate Strategy Fund — H Class*		21,924		568,714
SBL Fund — Series J (Mid Cap Growth Series)*		15,609		469,040
SBL Fund — Series V (Mid Cap Value Series)		8,116		468,933
SBL Fund — Series P (High Yield Series)		15,462		414,078
RSF — Event Driven and Distressed Strategies Fund — H Class*		15,523		401,108
RVT — Commodities Strategy Fund*		22,802		309,883
RSF — Long/Short Commodities Strategy Fund — H Class		10,886		280,538
RVT — Managed Futures Strategy Fund*		12,403		277,460
SBL Fund — Series X (Small Cap Growth Series)*		10,837		204,715
RSF — Long Short Equity Strategy Fund — H Class*		7,745		199,512
RSF — Alternative Strategies Fund — H Class*		7,853		199,381
SBL Fund — Series Q (Small Cap Value Series)*		5,873		197,571
RVT — Real Estate Fund		4,612		120,824
Total Mutual Funds (Cost $14,781,632)				17,494,894

	Face
	Amount		Value
REPURCHASE AGREEMENT††,2 - 16.5%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	3,488,814	$	3,488,814
Total Repurchase Agreement (Cost $3,488,814)				3,488,814
Total Investments - 99.3% (Cost $18,270,446)			$	20,983,708
Cash & Other Assets, Less Liabilities - 0.7%				137,476
Total Net Assets - 100.0%			$	21,121,184

			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
March 2011 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $860,090)		11	$	18,351
March 2011 MSCI EAFE Index Mini Futures Contracts (Aggregate Value of Contracts $663,040)		8		13,749
March 2011 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $1,445,250)		12		(32,957	)
(Total Aggregate Value of Contracts $2,968,380)			$	(857	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Affiliated security.
2	Repurchase Agreement — See Note 6.
	RSF — Rydex Series Funds
	RVT — Rydex Variable Trust
	SBL — Security Benefit Life

14 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALL-ASSET MODERATE STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments in affiliated issuers, at value	$	17,494,894
Repurchase agreements, at value		3,488,814
Total investments		20,983,708
Segregated cash with broker		132,700
Receivables:
Variation margin		2,907
Fund shares sold		2,136
Total assets		21,121,451
Liabilities:
Payable for:
Fund shares redeemed		267
Total liabilities		267
Net Assets	$	21,121,184
Net Assets Consist of:
Paid in capital	$	22,876,525
Distributions in excess of net investment income		(83,473	)
Accumulated net realized loss on investments		(4,384,273	)
Net unrealized appreciation on investments		2,712,405
Net assets	$	21,121,184
Capital shares outstanding		859,971
Net asset value per share	$	24.56
Investments in affiliated issuers, at cost	$	14,781,632
Repurchase agreements, at cost		3,488,814
Total cost	$	18,270,446

STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010

Investment Income:
Dividends from affiliated issuers	$	37,936
Interest		2,501
Total investment income		40,437
Expenses:
Custody fees		136
Total expenses		136
Net investment income		40,301
Net Realized And Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		116,454
Realized gain distributions received from affiliated issuers		58,551
Futures contracts		39,645
Net realized gain		214,650
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		1,160,865
Futures contracts		(857	)
Net change in unrealized appreciation (depreciation)		1,160,008
Net realized and unrealized gain		1,374,658
Net increase in net assets resulting from operations	$	1,414,959

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 15

ALL-ASSET MODERATE STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	40,301		$	223,210
Net realized gain (loss) on investments		214,650			(1,041,679	)
Net change in unrealized appreciation (depreciation) on investments		1,160,008			2,598,977
Net increase in net assets resulting from operations		1,414,959			1,780,508
Distributions to shareholders from:
Net investment income		(388,005	)a		(300	)
Net realized gains		(10,849	)a		—
Total distributions to shareholders		(398,854	)		(300	)
Capital share transactions:
Proceeds from sale of shares		15,525,622			7,161,809
Distributions reinvested		398,854			300
Cost of shares redeemed		(14,495,251	)		(10,107,134	)
Net increase (decrease) from capital share transactions		1,429,225			(2,945,025	)
Net increase (decrease) in net assets		2,445,330			(1,164,817	)
Net assets:
Beginning of year		18,675,854			19,840,671
End of year	$	21,121,184		$	18,675,854
Undistributed (distributions in excess of) net investment income at end of year	$	(83,473	)	$	233,913
Capital share activity:
Shares sold		664,745			341,296
Shares issued from reinvestment of distributions		16,675			13
Shares redeemed		(625,448	)		(492,072	)
Net increase (decrease) in shares		55,972			(150,763	)

^a  For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

16 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALL-ASSET MODERATE STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006a
Per Share Data
Net asset value, beginning of period	$	23.23		$	20.78		$	25.96		$	25.01		$	25.00
Income (loss) from investment operations:
Net investment incomeb		.05			.26			.47			.36			1.35
Net gain (loss) on investments (realized and unrealized)		1.76			2.19			(5.04	)		1.27			(.61	)
Total from investment operations		1.81			2.45			(4.57	)		1.63			.74
Less distributions from:
Net investment income		(.47	)d		(—	)c		(.44	)		(.22	)d		(.72	)
Net realized gains		(.01	)d		—			(.17	)		(.46	)d		(.01	)
Total distributions		(.48	)		(—	)		(.61	)		(.68	)		(.73	)
Net asset value, end of period	$	24.56		$	23.23		$	20.78		$	25.96		$	25.01
Total Returne		7.86	%		11.79	%		(17.58	%)		6.56	%		2.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,121		$	18,676		$	19,841		$	14,285		$	3,508
Ratios to average net assets:
Net investment income		0.20	%		1.25	%		1.99	%		1.36	%		28.35	%g
Total expensesf		—	h		—	h		—	h	0.01		%		—	h
Portfolio turnover rate		187	%		256	%		232	%		269	%		20	%

a	Since the commencement of operations: October 27, 2006.
b	Net investment income per share was computed using average shares outstanding throughout the period.
c	Less than $.01 per share.
d	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.
e	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
f	Does not include expenses of the underlying funds in which the Fund invests.
g	Income ratio for the period ended December 31, 2006 was calculated for an abbreviated time frame and is not indicative of future class performance, and is annualized.
h	Less than .01%.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 17

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

ALL-ASSET AGGRESSIVE STRATEGY FUND

OBJECTIVE: To primarily seek growth of capital.

Inception: October 27, 2006

The Federal Reserve was the dominant force in the market for 2010. The year began with the break out of the sovereign debt crisis in Europe, and equity markets fell off on the news. After a brief recovery during earnings season, the markets were reminded of the European crisis and fell off again. However, the Fed’s announcement of its second quantitative easing policy changed the market sentiment. Beginning in late August, sentiment moved to risk-on. In the meantime, macroeconomic numbers showed the economy was improving. Despite the emergence of the Ireland crisis later and the crisis in other European countries still lingering, the equity and commodities markets ignored these developments, and more than covered the losses from earlier in the year. Short-term bond yields late in the year touched record-low levels.

Alternative investment strategies did not shine in this environment, and some momentum strategies that were designed to capture trend quicker actually lost money in the market swings.

For the one-year period ended December 31, 2010, the All-Asset Aggressive Strategy Fund returned 12.34%, compared with its benchmark (64% Russell 3000^® Index, 16% MSCI EAFE Index and 20% Barclays Capital U.S. Aggregate Bond Index), which ended the year at 13.73%.

In the whole period, the Small Cap Growth Series, Mid Cap Growth Series and Small Cap Value Series contributed the most to performance. The International Long Short Select Fund, Equity Market Neutral Fund and Managed Futures Strategy Fund contributed the least to performance.

Derivatives in the Fund are used to provide the most efficient exposure to the components of the blended benchmark, as well as to provide liquidity.

Performance displayed represents past performance which is no guarantee of future results.

Industry Diversification (Market Exposure as % of Net Assets)

“Industry Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings
(% of Total Net Assets)
RVT — U.S. Long Short Momentum Fund	18.0	%
SBL Fund — Series D (Global Series)	11.0	%
SBL Fund — Series Y (Large Cap Concentrated Growth Series)	9.8	%
SBL Fund — Series B (Large Cap Value Series)	9.8	%
SBL Fund — Series E (U.S. Intermediate Bond Series)	9.5	%
RSF — Equity Market Neutral Fund — H Class	3.7	%
RSF — Long Short Interest Rate Strategy Fund — H Class	3.5	%
SBL Fund — Series V (Mid Cap Value Series)	2.9	%
SBL Fund — Series J (Mid Cap Growth Series)	2.9	%
RVT — Multi-Hedge Strategies Fund	2.6	%
Top Ten Total	73.7	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

18 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance:
October 27, 2006 — December 31, 2010

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

				SINCE
	ONE			INCEPTION
	YEAR			(10/27/06)
ALL-ASSET AGGRESSIVE STRATEGY FUND		12.34	%		2.20	%
S&P 500 INDEX		15.06	%		0.00	%
SYNTHETIC ALL-ASSET AGGRESSIVE STRATEGY BENCHMARK*		13.73	%		1.73	%

* Benchmark reflects 64% Russell 3000^® Index, 16% MSCI EAFE Index^®, and 20% Barclays Capital U.S. Aggregate Bond Index.

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index, Barclays Capital U.S. Aggregate Bond Index, Russell 3000 Index, and the MSCI EAFE Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 19

SCHEDULE OF INVESTMENTS December 31, 2010

ALL-ASSET AGGRESSIVE STRATEGY FUND

	Shares		Value
MUTUAL FUNDS†,1 - 85.6%
RVT — U.S. Long Short Momentum Fund*		172,980	$	2,214,144
SBL Fund — Series D (Global Series)		132,025		1,353,257
SBL Fund — Series Y (Large Cap Concentrated Growth Series)		120,600		1,199,965
SBL Fund — Series B (Large Cap Value Series)		46,507		1,199,417
SBL Fund — Series E (U.S. Intermediate Bond Series)		90,095		1,169,432
RSF — Equity Market Neutral Fund — H Class*		21,231		458,586
RSF — Long Short Interest Rate Strategy Fund — H Class*		16,413		425,751
SBL Fund — Series V (Mid Cap Value Series)		6,212		358,937
SBL Fund — Series J (Mid Cap Growth Series)*		11,774		353,817
RVT — Multi-Hedge Strategies Fund*		15,124		322,142
RSF — Long/Short Commodities Strategy Fund — H Class		9,508		245,012
RSF — Event Driven and Distressed Strategies Fund — H Class*		8,671		224,068
RVT — Managed Futures Strategy Fund*		8,724		195,148
SBL Fund — Series X (Small Cap Growth Series)*		9,547		180,334
SBL Fund — Series Q (Small Cap Value Series)*		5,327		179,195
RVT — Commodities Strategy Fund*		10,377		141,022
RSF — Alternative Strategies Fund — H Class*		4,499		114,217
RSF — Long Short Equity Strategy Fund — H Class*		4,313		111,097
RVT — Real Estate Fund		2,721		71,293
Total Mutual Funds (Cost $9,038,288)				10,516,834

	Face
	Amount		Value
REPURCHASE AGREEMENT††,2 - 13.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	1,688,151	$	1,688,151
Total Repurchase Agreement (Cost $1,688,151)				1,688,151
Total Investments - 99.3% (Cost $10,726,439)			$	12,204,985
Cash & Other Assets, Less Liabilities - 0.7%				83,340
Total Net Assets - 100.0%			$	12,288,325

			Unrealized
	Contracts		Gain (Loss)
FUTURES CONTRACTS PURCHASED†
March 2011 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $703,710)		9	$	15,779
March 2011 MSCI EAFE Index Mini Futures Contracts (Aggregate Value of Contracts $414,400)		5		8,594
March 2011 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $361,313)		3		(7,374	)
(Total Aggregate Value of Contracts $1,479,423)			$	16,999

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 7.
††	Value determined based on Level 2 inputs — See Note 7.
1	Affiliated security.
2	Repurchase Agreement — See Note 6.
	RSF — Rydex Series Funds
	RVT — Rydex Variable Trust
	SBL — Security Benefit Life

20 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALL-ASSET AGGRESSIVE STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010

Assets:
Investments in affiliated issuers, at value	$	10,516,834
Repurchase agreements, at value		1,688,151
Total investments		12,204,985
Segregated cash with broker		85,305
Total assets		12,290,290
Liabilities:
Payable for:
Variation margin		1,391
Fund shares redeemed		574
Total liabilities		1,965
Net Assets	$	12,288,325
Net Assets Consist of:
Paid in capital	$	12,369,343
Undistributed net investment income		3,916
Accumulated net realized loss on investments		(1,580,479	)
Net unrealized appreciation on investments		1,495,545
Net assets	$	12,288,325
Capital shares outstanding		512,290
Net asset value per share	$	23.99
Investments in affiliated issuers, at cost	$	9,038,288
Repurchase agreements, at cost		1,688,151
Total cost	$	10,726,439

STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010

Investment Income:
Dividends from affiliated issuers	$	23,092
Interest		769
Total investment income		23,861
Expenses:
Custody fees		100
Total expenses		100
Net investment income		23,761
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		241,560
Realized gain distributions received from affiliated issuers		33,936
Futures contracts		73,067
Net realized gain		348,563
Net change in unrealized appreciation (depreciation) on:
Investments in affiliated issuers		772,280
Futures contracts		16,999
Net change in unrealized appreciation (depreciation)		789,279
Net realized and unrealized gain		1,137,842
Net increase in net assets resulting from operations	$	1,161,603

See Notes to Financial Statements.

the RYDEX|SGI variable trust annual report | 21

ALL-ASSET AGGRESSIVE STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Year			Year
	Ended			Ended
	December 31,			December 31,
	2010			2009
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	23,761		$	40,501
Net realized gain (loss) on investments		348,563			(205,289	)
Net change in unrealized appreciation (depreciation) on investments		789,279			1,423,485
Net increase in net assets resulting from operations		1,161,603			1,258,697
Distributions to shareholders from:
Net investment income		(83,673	)a		(125	)
Net realized gains		(4,727	)a		—
Total distributions to shareholders		(88,400	)		(125	)
Capital Share Transactions:
Proceeds from sale of shares		9,080,933			5,220,666
Distributions reinvested		88,400			125
Cost of shares redeemed		(5,927,949	)		(5,141,187	)
Net increase from capital share transactions		3,241,384			79,604
Net increase in net assets		4,314,587			1,338,176
Net assets:
Beginning of year		7,973,738			6,635,562
End of year	$	12,288,325		$	7,973,738
Undistributed net investment income at end of year	$	3,916		$	45,108
Capital share activity:
Shares sold		406,964			277,849
Shares issued from reinvestment of distributions		3,824			6
Shares redeemed		(269,193	)		(272,291	)
Net increase in shares		141,595			5,564

^a For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

22 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

ALL-ASSET AGGRESSIVE STRATEGY FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
	2010			2009			2008			2007			2006		a
Per Share Data
Net asset value, beginning of period	$	21.51		$	18.17		$	25.21		$	24.48		$	25.00
Income (loss) from investment operations:
Net investment incomeb		.06			.11			.25			.29			1.85
Net gain (loss) on investments (realized and unrealized)		2.59			3.23			(6.57	)		1.32			(1.10	)
Total from investment operations		2.65			3.34			(6.32	)		1.61			.75
Less distributions from:
Net investment income		(.16	)d		(—	)c		(.24	)		(.17	)d		(1.24	)
Net realized gains		(.01	)d		—			(.48	)		(.71	)d		(.03	)
Total distributions		(.17	)		(—	)		(.72	)		(.88	)		(1.27	)
Net asset value, end of period	$	23.99		$	21.51		$	18.17		$	25.21		$	24.48
Total Returne		12.34	%		18.38	%		(25.04	%)		6.64	%		3.02	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,288		$	7,974		$	6,636		$	6,874		$	542
Ratios to average net assets:
Net investment income		0.27	%		0.56	%		1.11	%		1.12	%		39.87	%g
Total expensesf		—	h		—	h		—	h		0.01	%		—
Portfolio turnover rate		168	%		307	%		308	%		300	%		34	%

a	Since the commencement of operations: October 27, 2006.
b	Net investment income per share was computed using average shares outstanding throughout the period.
c	Less than $.01 per share.
d	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.
e	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
f	Does not include expenses of the underlying funds in which the Fund invests.
g	Income ratio for the period ended December 31, 2006 was calculated for an abbreviated time frame and is not indicative of future class performance, and is annualized.
h	Less than .01%.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 23

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies

Organization

The Rydex Variable Trust (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company and is authorized to issue an unlimited number of shares (no par value). The Trust offers shares of its funds to insurance companies for their variable annuity and variable life insurance contracts.

At December 31, 2010, the Trust consisted of fifty-eight separate Funds. This report covers the Asset Allocation Funds (the “Funds”), while the other Funds are contained in separate reports.

Each Fund is a “fund of funds,” which means that each Fund seeks to achieve its investment objective by investing primarily in a combination of mutual funds (the “underlying funds”), within the same group of affiliated investment companies, and exchange-traded funds (“ETFs”), instead of in individual securities. The underlying funds are advised by Security Investors, LLC (doing business as “Security Global Investors” (“SGI”)). SGI is an indirect, wholly-owned subsidiary of Security Benefit Corporation.

SGI provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (“RDL”) acts as principal underwriter for the Trust. SGI, RFS and RDL are affiliated entities.

Significant Accounting Policies

The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. All time references are based on Eastern Time.

A. The underlying funds are valued at their Net Asset Value (“NAV”) as of the close of business, usually 4:00 p.m. on the valuation date. ETFs and closed-end investment companies are valued at the last quoted sales price. Short-term securities with a maturity of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.

The value of futures contracts purchased and sold by the Trust is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in underlying funds are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. The Funds invested in equity and interest rate futures contracts for liquidity and to gain the most efficient exposure. Futures contracts are contracts for delayed delivery of securities at a specified future delivery date and at a specific price. Upon entering into a contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

E. Throughout the normal course of business, the Funds and the underlying funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The maximum exposure under these arrangements is unknown, as this would involve future claims that may be made that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

24 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

2. Financial Instruments

As part of their investment strategies, the underlying funds may utilize short sales and a variety of derivative instruments including, options, futures, options on futures, structured notes, and swap agreements. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts reflected in the underlying funds’ NAVs.

The Funds are subject to fund of funds risk. By investing in the underlying funds indirectly through the Fund, an investor will incur not only a proportionate share of the expenses of the underlying funds held by the Fund (including operating costs and management fees), but also expenses of the Fund. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying funds. In order to minimize these expenses, the Fund intends to invest in the class of shares of each underlying fund with the lowest shareholder fees and net fund operating expenses.

In conjunction with the use of futures, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each Fund.

The risks inherent in the use of futures contracts include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; iii) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles requires disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations.

During the year ended December 31, 2010, the Funds sought to gain exposure to their respective benchmarks by investing in financial-linked derivative instruments, including equity and interest rate futures. The following table represents the notional amount of derivative instruments outstanding, as an approximate percentage of the Funds’ net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives:

	Approximate percentage of Fund’s
Fund	net assets on a daily basis
All-Asset Conservative Strategy Fund		20	%
All-Asset Moderate Strategy Fund		15	%
All-Asset Aggressive Strategy Fund		10	%

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of December 31, 2010:

Location on the Statements of Assets and Liabilities

Derivative Investments Type	Asset Derivatives	Liability Derivatives
Equity/Interest rate contracts	Variation margin	Variation margin

The following table sets forth the fair value of the Fund’s derivative contracts by primary risk exposure at December 31, 2010:

Asset Derivative Investments Value

	Futures			Futures
	Equity			Interest Rate			Total Value at
Fund	Contracts		*	Contracts		*	December 31, 2010
All-Asset Conservative Strategy Fund	$	15,537		$	—		$	15,537
All-Asset Moderate Strategy Fund		32,100			—			32,100
All-Asset Aggressive Strategy Fund		24,373			—			24,373

the RYDEX|SGI variable trust annual report | 25

NOTES TO FINANCIAL STATEMENTS (continued)

Liability Derivative Investments Value

	Futures			Futures
	Equity			Interest Rate			Total Value at
Fund	Contracts		*	Contracts		*	December 31, 2010
All-Asset Conservative Strategy Fund	$	—		$	30,407		$	30,407
All-Asset Moderate Strategy Fund		—			32,957			32,957
All-Asset Aggressive Strategy Fund		—			7,374			7,374

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations for the year ended December 31, 2010:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure for the year ended December 31, 2010:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations

	Futures		Futures
	Equity		Interest Rate
Fund	Contracts		Contracts			Total
All-Asset Conservative Strategy Fund	$	27,252	$	(27,748	)	$	(496	)
All-Asset Moderate Strategy Fund		56,746		(17,101	)		39,645
All-Asset Aggressive Strategy Fund		78,854		(5,787	)		73,067

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations

	Futures		Futures
	Equity		Interest Rate
Fund	Contracts		Contracts			Total
All-Asset Conservative Strategy Fund	$	15,537	$	(30,407	)	$	(14,870	)
All-Asset Moderate Strategy Fund		32,100		(32,957	)		(857	)
All-Asset Aggressive Strategy Fund		24,373		(7,374	)		16,999

4. Fees And Other Transactions With Affiliates

SGI manages the investment and reinvestment of the assets of each of the Funds in accordance with the investment objectives, policies, and limitations of each Fund, however, the Funds do not pay SGI a management fee. As part of its agreement with the Trust, SGI will pay all expenses of the Funds, including the cost of transfer agency, fund administration, audit and other services, excluding interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the execution of portfolio transactions, short dividend expenses, and extraordinary expenses.

Each Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other expenses) of the underlying funds in which the Fund invests.

Certain officers and trustees of the Trust are also officers of SGI, RFS and RDL.

5. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (fiscal years 2007-2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

26 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales and deferred post-October losses.

Permanent book and tax basis differences, if any, will result in reclassifications. This may include net operating losses not utilized during the current period and expired capital loss carryforward. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains. For the year ended December 31, 2010, the following capital loss carryforward amounts were used:

Fund	Amount
All-Asset Aggressive Strategy Fund	$	156,583

The tax character of distributions paid during 2010 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
All-Asset Conservative Strategy Fund	$	290,984	$	—	$	290,984
All-Asset Moderate Strategy Fund		398,854		—		398,854
All-Asset Aggressive Strategy Fund		88,400		—		88,400

The tax character of distributions paid during 2009 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
All-Asset Conservative Strategy Fund	$	147	$	—	$	147
All-Asset Moderate Strategy Fund		300		—		300
All-Asset Aggressive Strategy Fund		125		—		125

The tax character of distributable earnings/(accumulated losses) at December 31, 2010 was as follows:

	Undistributed		Undistributed
	Ordinary		Long-Term		Net Unrealized		Capital Loss
Fund	Income		Capital Gain		Appreciation		Carryforward1
All-Asset Conservative Strategy Fund	$	45,267	$	—	$	813,653	$	(1,870,766	)
All-Asset Moderate Strategy Fund		81,469		—		2,042,712		(3,879,522	)
All-Asset Aggressive Strategy Fund		47,209		—		1,125,389		(1,253,616	)

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

¹ A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows:

										Total
	Expires in			Expires in			Expires in			Capital Loss
Fund	2016			2017			2018			Carryforward
All-Asset Conservative Strategy Fund	$	(612,719	)	$	(1,211,730	)	$	(46,317	)	$	(1,870,766	)
All-Asset Moderate Strategy Fund		(1,816,884	)		(1,613,664	)		(448,974	)		(3,879,522	)
All-Asset Aggressive Strategy Fund		(608,035	)		(645,581	)		—			(1,253,616	)

At December 31, 2010, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities, for which there was an excess of value over tax cost, and the aggregate gross unrealized loss for all securities, for which there was an excess of tax cost over value, were as follows:

			Tax		Tax			Net
	Tax		Unrealized		Unrealized			Unrealized
Fund	Cost		Gain		Loss			Gain
All-Asset Conservative Strategy Fund	$	10,382,506	$	859,812	$	(46,159	)	$	813,653
All-Asset Moderate Strategy Fund		18,940,996		2,129,620		(86,908	)		2,042,712
All-Asset Aggressive Strategy Fund		11,079,597		1,167,993		(42,604	)		1,125,389

Post-October Losses Deferred

Pursuant to Federal income tax regulations applicable to investment companies, the Funds have elected to treat net capital losses realized between November 1 and December 31 of each year as occurring on the first day of the following tax

the RYDEX|SGI variable trust annual report | 27

NOTES TO FINANCIAL STATEMENTS (continued)

year. For the year ended December 31, 2010, the following amounts of realized capital losses reflected in the accompanying financial statements will not be recognized for Federal income tax purposes until January 1, 2011:

Fund	Capital
All-Asset Conservative Strategy Fund	$	(20,034	)

6. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

The repurchase agreements executed by the joint account and outstanding at December 31, 2010, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.10% due 01/03/11	$	11,982,762	$	11,982,762	$	11,982,795

At December 31, 2010, the collateral for the repurchase agreements in the joint account was as follows:

Security Type	Maturity Date	Rate			Par Value		Market Value
U.S. Treasury Note	11/15/19		3.38	%	$	11,781,700	$	12,222,476

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the credit worthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

7. Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 —	quoted prices in active markets for identical investments.
Level 2 —	other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3 —	significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2010:

	Level 1		Level 1		Level 2		Level 3
	Investments		Other Financial		Investments		Investments
Fund	In Securities		Instruments*		In Securities		in Securities		Total
Assets
All-Asset Conservative Strategy Fund	$	8,761,198	$	15,537	$	2,434,961	$	—	$	11,211,696
All-Asset Moderate Strategy Fund		17,494,894		32,100		3,488,814		—		21,015,808
All-Asset Aggressive Strategy Fund		10,516,834		24,373		1,688,151		—		12,229,358

28 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

	Level 1		Level 1		Level 2		Level 3
	Investments		Other Financial		Investments		Investments
Fund	In Securities		Instruments*		In Securities		in Securities		Total
Liabilities
All-Asset Conservative Strategy Fund	$	—	$	30,407	$	—	$	—	$	30,407
All-Asset Moderate Strategy Fund		—		32,957		—		—		32,957
All-Asset Aggressive Strategy Fund		—		7,374		—		—		7,374

* Other financial instruments includes futures which are reported as unrealized gain/loss at period end.

The Funds adopted updated provisions surrounding fair value measurements and disclosures effective January 1, 2010. This update applies to the Funds’ disclosures about transfers in and out of all Levels of the fair value hierarchy on a gross basis and the reasons for the transfers, as well as to disclosures about the valuation techniques and inputs used to measure fair value for investments that fall in either Level 2 or Level 3 of the fair value hierarchy. Effective for interim and annual periods beginning after December 15, 2010, purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.

For the year ended December 31, 2010, there were no significant transfers between Levels.

8. Securities Transactions

During the year ended December 31, 2010, purchases and sales of investment securities, excluding short-term and temporary cash investments, were:

	All-Asset		All-Asset		All-Asset
	Conservative Strategy Fund		Moderate Strategy Fund		Aggressive Strategy Fund
Purchases	$	14,518,734	$	33,618,577	$	15,613,624
Sales	$	14,156,560	$	35,202,824	$	13,890,264

9. Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33¹/₃% of a Fund’s net assets, 33¹/₃% of a Fund’s assets held by the Custodian or 33¹/₃% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. As of and for the year ended December 31, 2010, the Funds did not have any outstanding borrowings under this agreement.

10. Acquisition of Security Benefit Corporation

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors II, LLC (formerly PADCO Advisors II, Inc.), the Funds’ investment advisor (the “Investment Advisor”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Advisor (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction did not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreement with the Investment Advisor (“Previous Agreement”). A new investment advisory agreement (“New Agreement”) was approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreement are substantially identical to the Previous Agreement, except with respect to the date of execution.

11. Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ Distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

the RYDEX|SGI variable trust annual report | 29

NOTES TO FINANCIAL STATEMENTS (concluded)

12. Subsequent Events

Effective January 3, 2011, Rydex Advisors II, LLC, the Funds’ investment advisor was merged with and into Security Investors, LLC, which will operate under the name SGI.

The foregoing internal restructuring is not expected to affect the investment advisory services rendered to the Funds, which will continue to be managed on a day-to-day basis by the same teams of portfolio managers. The investment philosophies, strategies, and processes of the Funds also will remain the same.

In order to implement the restructuring, technical amendments were made to the Funds’ investment advisory agreement with Rydex Advisors II, LLC in order to reflect the change of the identity of the investment advisor. No other changes will be made to the investment advisory agreement of the Funds, and the fees and expenses of the Funds will remain the same.

30 | the RYDEX|SGI variable trust annual report

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
of the Rydex Variable Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of All-Asset Conservative Strategy Fund, All-Asset Moderate Strategy Fund, and All-Asset Aggressive Strategy Fund (three of the series constituting the Rydex Variable Trust) (the “Funds”) as of December 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the periods presented through December 31, 2007 were audited by other auditors, whose report dated February 25, 2008 expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the transfer agent of underlying funds and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds at December 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 24, 2011

the RYDEX|SGI variable trust annual report | 31

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended December 31 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Change of Address

Effective January 17, 2011, the RYDEX|SGI office was moved to Four Irvington Centre, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

SGI Board Review and Approval of the Investment Advisory Agreements

At an in-person meeting of the Trust’s Board of Trustees held on January 28, 2010, called for the purpose of, among other things, voting on the approval of the investment advisory and sub-advisory agreements applicable to the series of the Trust (the “Funds”), the Trust’s Board of Trustees, including the Independent Trustees, unanimously approved the continuation for a two-year period the investment advisory agreements between the Trust and Rydex Advisors II, LLC (formerly, PADCO Advisors II, Inc., and referred to herein as “Rydex”). In reaching this conclusion, the Trustees requested and obtained from Rydex and each investment sub-adviser such information as the Trustees deemed reasonably necessary to evaluate the proposed renewal of the agreements. The Trustees carefully evaluated this information and were advised by legal counsel with respect to their deliberations.

In considering the approval of the investment advisory and sub-advisory agreements, the Independent Trustees evaluated a number of considerations, including, among others, (1) the nature, extent, and quality of the advisory services to be provided by Rydex; (2) the investment performance of the Funds and Rydex; (3) the costs of services provided by Rydex and the profits derived by Rydex from its relationship with the Funds; (4) a comparison of each Funds’ expense ratios and those of similarly situated funds; (5) benefits (such as soft dollars) to Rydex and its affiliates from their relationship with the Funds (and any corresponding benefits to the Funds); (6) other factors the Board deemed to be relevant. The Board also took into account other considerations that it believed, in light of the legal advice furnished to the Independent Trustees by their independent legal counsel and the Trustees’ own business judgment, to be relevant. Following its review, the Trust’s Board determined that the investment advisory agreement will enable Fund shareholders to obtain high quality services at a cost that is appropriate, reasonable and in the best interests of shareholders. Accordingly, the Trustees, including the Independent Trustees, unanimously approved the renewal of the investment advisory agreements based upon the following considerations, among others:

• The nature, extent and quality of the advisory services to be provided. The Board of Trustees concluded that Rydex is capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided in the past, Rydex’s management capabilities demonstrated with respect to the Funds and other mutual funds managed by Rydex, the professional qualifications and experience of Rydex and Rydex’s investment and management oversight processes. The Trustees also determined that Rydex proposed to provide investment and related services that were of the same quality and quantity as services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Fund. With respect to the Funds, the Trustees concluded on the basis of information compiled by Morningstar that Rydex and the investment sub-advisers had achieved investment performance that was acceptable, and competitive or superior relative to comparable funds over trailing periods.

32 | the RYDEX|SGI variable trust annual report

OTHER INFORMATION (Unaudited) (concluded)

• The cost of advisory services provided and the level of profitability. On the basis of the Board’s review of the fees to be charged by Rydex for investment advisory and other services, and the estimated profitability of Rydex’s relationship with the Funds, the Board concluded that the level of investment advisory fees and Rydex’s profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and Rydex and its affiliates. On the basis of comparative information compiled by Morningstar, the Trustees determined that the advisory fees and estimated overall expense ratio of each Fund are consistent with, and often below, industry medians, particularly with respect to mutual funds of comparable size.

• Whether the advisory fees reflect economies of scale. The Trustees concluded that the Funds’ investment advisory fees appropriately reflect the current economic environment for Rydex and the competitive nature of the mutual fund market.

• The extent to which economies of scale will be realized as the Fund grows. While the Funds’ investment advisory fees do not reduce should fund assets grow meaningfully, the Trustees determined that the investment advisory fees payable by the funds already reflect potential future economies of scale to some extent by virtue of their competitive levels (determined with reference to industry standards as reported by Lipper) and Rydex’s estimated profitability at current or foreseeable asset levels. The Trustees also considered that they will have the opportunity to periodically re-examine whether each Fund has achieved economies of scale, and the appropriateness of investment advisory fees payable to Rydex in the future.

the RYDEX|SGI variable trust annual report | 33

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of SGI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

All Trustees and Officers may be reached c/o Security Global Investors, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds — 1997		150
Trustee, Chairman of the	Rydex Variable Trust — 1998
Board (1940)	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired
Corey A. Colehour	Rydex Series Funds — 1993		150
Trustee (1945)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)
J. Kenneth Dalton	Rydex Series Funds — 1995		150
Trustee (1941)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group
Werner E. Keller	Rydex Series Funds — 2005		150
Trustee (1940)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)
Thomas F. Lydon, Jr.	Rydex Series Funds — 2005		150
Trustee (1960)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005
Principal Occupations During Past Five Years: President, Global Trends Investments
Patrick T. McCarville	Rydex Series Funds — 1997		150
Trustee (1942)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.
Roger Somers	Rydex Series Funds — 1993		150
Trustee (1944)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

34 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nikolaos Bonos* Vice President and Treasurer (1963)	Senior Vice President, Security Investors, LLC; and Vice President, Security Benefit Asset Management Holdings, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney Catalucci* Chief Compliance Officer and Secretary (1966)	Vice President, Security Benefit Asset Management Holdings, LLC; and Senior Vice President and Chief Compliance Officer, Security Investors, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present); Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)

the RYDEX|SGI variable trust annual report | 35

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS — concluded

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Vice President, Security Investors, LLC (2010 to present); Vice President, Security Global Investors, LLC (2010 to 2011); Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration Rydex Investments (2001 to present)

* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments.

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805 King Farm Boulevard, Suite 600
Rockville, MD 20850
www.rydex-sgi.com
800.820.0888
RVAEP-2-1210x1211

This report and the financial statements contained herein are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus.

Distributed by Rydex Distributors, LLC.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS	2
ABOUT SHAREHOLDERS’ FUND EXPENSES	4
DWA FLEXIBLE ALLOCATION FUND	6
DWA SECTOR ROTATION FUND	12
NOTES TO FINANCIAL STATEMENTS	18
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	24
OTHER INFORMATION	25
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	27

the RYDEX|SGI variable trust annual report | 1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER,

The U.S. economy continued a second year of recovery in 2010, but soft employment and housing markets combined to keep growth tepid. The consensus forecast for U.S. GDP growth was 2.8%, but a consumer spending rally may be needed for it to do better in 2011. Along with better economic reports on retail sales and jobless claims late in 2010, passage of federal legislation to extend Bush-era tax cuts and roll out new stimulus measures boosted equity markets, and prompted many economists to raise growth forecasts for 2011 to 3.5% or higher. Markets were also affected by a change in control of the House of Representatives and a renewed focus on cutting government spending and dealing with the budget deficit.

The U.S. Federal Reserve was responsible for much of the investor optimism that flowed through 2010, slowed only at mid-year by debt problems in Europe and the fading effects of U.S. government stimulus spending that played into fears of a double-dip recession. Concerns that the economy was not growing fast enough to lower an unemployment rate seemingly stuck at more than 9% led the U.S. central bank to signal in August that it would embark on a second round of bond buying in an attempt to keep long-term rates low enough to entice borrowers and spur economic activity. Although critics said such quantitative easing could flame inflation or lead to another asset bubble, the expectation of up to $600 billion in purchases corresponded with a third-quarter stock-market rally, which picked up more steam after the purchases actually began in November. Inflation turned out to be tame in 2010, with prices rising just 1.1%.

Government efforts to support the economy were a plug for stocks in 2010, as markets were carried to highs last seen more than two years ago—just before the collapse of Lehman Brothers. U.S. equity markets were up by double digits in 2010. The NASDAQ Composite Index* led major indices, up 17%, while the Dow Jones Industrial Average Index* and S&P 500^® Index* were up 14% and 15%, respectively. The sweet spot was small cap stocks, often a leader in economic recoveries, and the Russell 2000^® Index* was up 27%. Stocks in the consumer discretionary and industrials sectors, which benefited from exposure to awakening consumers as well as emerging markets and commodities, were up the most, 26% and 23% respectively, while the health care sector provided the weakest return at less than 1%.

Markets around the globe also benefited from the flood of cash unleashed by the U.S. Federal Reserve. Those in many European countries rose despite sovereign debt problems, with the broad STOXX Europe 600 Index* finishing up 9%. Strong economic recovery in Asia benefited markets from Indonesia to South Korea, although the region’s two largest economies, Japan and China, finished the year lower.

Yield-hungry fixed-income investors increasingly took on credit risk over the year, which was reflected in good performance across most sectors. Expectations about too-fast economic growth and possibly a tick up in inflation in the next few quarters prompted a late-year selloff in Treasuries. Although the Fed kept interest rates on hold all year, the yield on Treasuries rose, affecting mortgage rates, which unfortunately came at a time when reports were indicating that house prices continue to fall and a glut of foreclosures may hit the market over the next few years. Still, Treasuries performed well over the year, as fears of a double-dip recession and European debt woes eased. Among the best returns for the year: bonds in the U.S. intermediate high yield space and emerging market bonds. The Barclays Capital U.S. Aggregate Bond Index* returned about 6.5%.

Driven by demand from China and other fast-growing countries, commodities performed strongly in 2010, as investors appeared to be either encouraged by global recovery or worried about inflation. The Dow Jones-UBS Commodity Index* was up almost 17%; indicative of the strength of the raw materials rally was a record high price for copper and gold. While the metals and agriculture sub-indices were higher over the year, the energy index was lower. Oil finished 2010 around $91, rising about 15%.

The dollar gained on the euro in 2010, reflecting concern about Europe’s crisis in sovereign debt. The dollar weakened against many other currency counterparts around the world, falling most against the yen, as investors coped with record-low rates by searching for higher-yielding assets.

2 | the RYDEX|SGI variable trust annual report

LETTER TO OUR SHAREHOLDERS (concluded)

Many economists are calling for recovery to continue in 2011. Some feel there is a chance the economy could overheat, based on continued Fed intervention, causing a spike in interest rates, choking off recovery. Others view high levels of government and consumer debt as weights that could restrain the expansion, with growth insufficient to bring down unemployment. U.S. consumers are vital to a robust global recovery and their improving household incomes and debt burdens, along with rising global profits, should benefit many global regions. Stronger performance is forecast for emerging markets compared with developed economies, which are still shoring up their finances. In the fixed income market, strong corporate balance sheets and a low default rate should combine to further compress spreads, and position credit to outperform government paper in the year ahead.

Whether helping hedge or augment exposures to the equity or fixed-income markets, or introducing alternative assets and strategies to portfolios for overall diversification¹, our products are designed for a range of investment scenarios. Rydex|SGI is pleased to help investors navigate uncertain markets, and we appreciate the trust you place in us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

¹ Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.

* Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

NASDAQ Composite Index — a capitalization-weighted index of more than 3,000 companies listed on the NASDAQ Stock Market.

The Dow Jones Industrial Average Index (DJIA) — a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

The Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large-, mid- and small-capitalization companies across 18 countries of the European region: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The U.S. Aggregate rolls up into other Barclays Capital flagship indices such as the multi-currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt.

The Dow Jones-UBS Commodity Index aims to provide broadly diversified representation of commodity markets as an asset class. The index is made up of exchange-traded futures on physical commodities. The index represents 19 commodities, which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.

Performance displayed represents past performance which is no guarantee of future results. Of course, fund performance is subject to daily market volatility and may be better or worse since the end of the last quarter. For up-to-date fund performance, call us at 800.820.0888 or visit www.rydex-sgi.com.

Read each fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

the RYDEX|SGI variable trust annual report | 3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

December 31, 2010

All mutual funds have operating expenses and it is important for our shareholders to understand the impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs, including sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative services, and shareholder reports, among others. These ongoing costs, or operating expenses, are deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the expense ratio. The following examples are intended to help investors understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning June 30, 2010 and ending December 31, 2010.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the fourth column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. Investors may use the information here, together with the amount invested, to estimate the expenses paid over the period. Simply divide the Fund’s 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 provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s cost with those of other mutual funds. The table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid during the period. The example is useful in making comparisons because the U.S. Securities and Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5% return. Investors can assess a Fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The calculations illustrated above assume no shares were bought or sold during the period. Actual costs may have been higher or lower, depending on the amount of investment and the timing of any purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

4 | the RYDEX|SGI variable trust annual report

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

December 31, 2010

							Beginning		Ending		Expenses
	Expense			Fund			Account Value		Account Value		Paid During
	Ratio1			Return			June 30, 2010		December 31, 2010		Period2
Table 1. Based on actual Fund return3
DWA Flexible Allocation Fund		1.84	%		11.26	%	$	1,000.00	$	1,112.57	$	9.80
DWA Sector Rotation Fund		1.84	%		13.99	%		1,000.00		1,139.90		9.92
Table 2. Based on hypothetical 5% return (before expenses)
DWA Flexible Allocation Fund		1.84	%		5.00	%	$	1,000.00	$	1,015.93	$	9.35
DWA Sector Rotation Fund		1.84	%		5.00	%		1,000.00		1,015.93		9.35

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund’s annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses shown do not include fees charged by insurance companies.
3	Actual cumulative return at net asset value for the period June 30, 2010 to December 31, 2010.

the RYDEX|SGI variable trust annual report | 5

PERFORMANCE REPORT AND FUND PROFILE (Unaudited)

December 31, 2010

DWA FLEXIBLE ALLOCATION FUND

OBJECTIVE: Seeks to provide capital appreciation with capital preservation as a secondary objective.

Inception: April 28, 2010.

Performance for the DWA Flexible Allocation Fund for the partial year ended December 31, 2010, was -1.56%, behind the performance of the S&P 500^® Index*, which rose 7.07% (4/28/10 to 12/31/10). The Fund has lagged the market since inception on April 28, 2010, primarily due to a choppy market environment earlier in the year.

Rather than being responsive to specific global or domestic events, all changes in the portfolio are a consequence of relative strength. Significant portfolio shifts were driven by relative strength over the course of 2010. Real estate and small-cap domestic equities were significant weights in the portfolio from spring through autumn. Starting in the fall and continuing through the winter, there was consistent rotation toward international equities, commodities, energy and basic materials.

The strongest performances were in technology, industrials and basic materials. Latin America did not perform as well, as capital controls were instituted in some countries.

The biggest negative factors in the portfolio performance were two hedging transactions early in its existence. Although hedging can be extraordinarily valuable in years like 2008, it can create underperformance during choppy market environments. The Fund was launched April 28, almost coincident with the S&P 500 highest close since March 2009 on April 23 and followed shortly by the “flash crash” of May 6. By May 20, the market had declined enough to activate our hedge. Another decline in June triggered our hedge on July 1. In both cases, the hedging occurred at a point that turned out to be near the end of the declines. The subsequent reversals created significant opportunity cost—enough to put the portfolio behind the market. (Using the S&P 500^® Index price as an approximation, the first hedge cost 4%, while the second cost 7%.)

During the brief November correction, a modest cash hedge was instituted. When the equity market resumed its uptrend, positions were reestablished that accentuated the shift toward energy and basic materials. As a result of the smoother equity market trends, the portfolio performed more strongly during the latter part of the year.

Our investment process relies on market action rather than economic forecasts. If the indications provided by relative strength are accurate, global economic growth may be stronger than expected. In addition, the late Q4 reductions in precious metals suggest that immediate inflation fears may be exaggerated. Investor sentiment is probably the major risk to an otherwise positive outlook. Some surveys suggest investor complacency, which could lead to a sideways market or a modest correction. Our investment philosophy is firmly grounded in a rotational process driven by relative strength, so we expect to be able to adapt to a wide variety of market conditions as they continue to present themselves.

* Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

Performance displayed represents past performance which is no guarantee of future results.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

Ten Largest Holdings (% of Total Net Assets)

First Trust Dow Jones Internet Index Fund	8.7	%
PowerShares DB Precious Metals Fund	8.6	%
PowerShares DB Agriculture Fund	8.5	%
iShares Dow Jones US Basic Materials Sector Index Fund	8.5	%
iShares Dow Jones Transportation Average Index Fund	8.3	%
iShares S&P Latin America 40 Index Fund	8.2	%
Vanguard Telecommunication Services ETF	8.1	%
Vanguard Materials ETF	8.0	%
iShares MSCI Emerging Markets Index Fund	8.0	%
iShares MSCI Pacific ex-Japan Index Fund	7.9	%
Top Ten Total	82.8	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

6 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance:
April 28, 2010 — December 31, 2010

TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

	SINCE
	INCEPTION
	(04/28/10)
DWA FLEXIBLE ALLOCATION FUND		-1.56	%
S&P 500 INDEX		7.07	%
SYNTHETIC DWA FLEXIBLE ALLOCATION BENCHMARK*		6.00	%

* Benchmark reflects 60% S&P 500 Index and 40% Barclays Aggregate Bond Index

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index and Barclays Aggregate Bond Index are unmanaged indices and, unlike the Fund, have no management fees or other operating expenses to reduce their reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 7

SCHEDULE OF INVESTMENTS December 31, 2010

DWA FLEXIBLE ALLOCATION FUND

	Shares		Value
| |
EXCHANGE TRADED FUNDS† - 98.2%
UNITED STATES OF AMERICA - 74.1%
First Trust Dow Jones Internet Index Fund		53,350	$	1,830,972
PowerShares DB Precious Metals Fund		34,950		1,811,109
PowerShares DB Agriculture Fund		55,450		1,793,808
iShares Dow Jones US Basic Materials Sector Index Fund		23,000		1,781,580
iShares Dow Jones Transportation Average Index Fund		18,848		1,740,047
Vanguard Telecommunication Services ETF		26,000		1,706,380
Vanguard Materials ETF		20,500		1,693,300
SPDR S&P Metals & Mining ETF		24,000		1,650,720
iShares Dow Jones US Oil Equipment & Services Index Fund		28,500		1,605,975
Total United States of America				15,613,891
LATIN AMERICAN REGION - 8.2%
iShares S&P Latin America 40 Index Fund		32,000		1,723,520
INTERNATIONAL - 8.0%
iShares MSCI Emerging Markets Index Fund		35,200		1,676,224
ASIAN PACIFIC REGION EX-JAPAN - 7.9%
iShares MSCI Pacific ex-Japan Index Fund		35,500		1,667,790
Total Exchange Traded Funds
(Cost $19,250,348)				20,681,425

	Face
	Amount		Value
REPURCHASE AGREEMENTS††,1 - 3.1%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	165,083	$	165,083
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		164,604		164,604
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		157,550		157,550
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		157,550		157,550
Total Repurchase Agreements
(Cost $644,787)				644,787
Total Investments - 101.3%
(Cost $19,895,135)			$	21,326,212
Liabilities, Less Other Assets — (1.3)%				(275,758	)
Total Net Assets - 100.0%			$	21,050,454

†	Value determined based on Level 1 inputs — See Note 6.
††	Value determined based on Level 2 inputs — See Note 6.
1	Repurchase Agreements — See Note 5.

8 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

DWA FLEXIBLE ALLOCATION FUND

STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010

Assets:
Investments, at value	$	20,681,425
Repurchase agreements, at value		644,787
Total investments		21,326,212
Receivables:
Dividends		2,075
Total Assets		21,328,287
Liabilities:
Payable for:
Securities purchased		241,262
Fund shares redeemed		881
Management fees		17,797
Custodian fees		587
Transfer agent/maintenance fees		4,449
Investor service fees		4,449
Portfolio accounting fees		1,780
Other		6,628
Total Liabilities		277,833
Net Assets	$	21,050,454
Net assets consist of:
Paid in capital	$	19,552,488
Undistributed net investment income		90,587
Accumulated net realized loss on investments		(23,698	)
Net unrealized appreciation on investments		1,431,077
Net assets	$	21,050,454
Capital shares outstanding		855,319
Net asset value per share	$	24.61
Investments, at cost	$	19,250,348
Repurchase agreements, at cost		644,787
Total Cost	$	19,895,135

STATEMENT OF OPERATIONS

Period Ended December 31, 2010†
|
Investment Income:
Dividends	$	288,254
Interest		2,610
Total investment income		290,864
Expenses:
Management fees		109,019
Transfer agent and administrative fees		27,255
Investor service fees		27,255
Portfolio accounting fees		10,902
Trustees’ fees*		947
Audit and service fees		20,202
Miscellaneous		4,697
Total Expenses		200,277
Net investment income		90,587
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(23,698	)
Net realized loss		(23,698	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,431,077
Net change in unrealized appreciation (depreciation)		1,431,077
Net realized and unrealized gain		1,407,379
Net increase in net assets resulting from operations	$	1,497,966

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
†	Since the commencement of operations: April 28, 2010.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 9

DWA FLEXIBLE ALLOCATION FUND

STATEMENT OF CHANGES IN NET ASSETS

	Period
	Ended
	December 31,
	2010*
Increase (Decrease) in Net Assets From Operations:
Net investment income	$	90,587
Net realized loss on investments		(23,698	)
Net change in unrealized appreciation (depreciation) on investments		1,431,077
Net increase in net assets resulting from operations		1,497,966
Distributions to Shareholders		—
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares		23,846,705
Cost of shares redeemed		(4,294,217	)
Net increase from capital share transactions		19,552,488
Net increase in net assets		21,050,454
Net Assets:
Beginning of period		—
End of period	$	21,050,454
Undistributed net investment income at end of period	$	90,587
Capital Share Activity:
Shares sold		1,043,463
Shares redeemed		(188,144	)
Net increase in shares		855,319

* Since the commencement of operations: April 28, 2010.

10 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

DWA FLEXIBLE ALLOCATION FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Period Ended
	December 31,
	2010a
Per Share Data
Net asset value, beginning of period	$	25.00
Income (loss) from investment operations:
Net investment incomeb		.12
Net loss on investments (realized and unrealized)		(.51	)
Total from investment operations		(.39	)
Net asset value, end of period	$	24.61
Total Returnc		(1.56	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,050
Ratios to average net assetse:
Net investment income		0.83	%
Total expensesd		1.84	%
Portfolio turnover rate		305	%

a	Since the commencement of operations: April 28, 2010.
b	Net investment income per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
d	Total expense information does not include expenses of the underlying funds in which the Fund invests.
e	Annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 11

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) December 31, 2010

DWA SECTOR ROTATION FUND

OBJECTIVE: Seeks to provide long-term capital appreciation.

Inception: April 28, 2010.

Performance for the Sector Rotation Fund for the partial year ended December 31, 2010 was -4.16%, behind the performance of the S&P 500^® Index*, which rose 7.07% (4/28/10 to 12/31/10). The Fund has lagged the market since inception on April 28, 2010, primarily due to a choppy market environment earlier in the year.

All changes in the portfolio are a consequence of relative strength, rather than a response to specific global or domestic events. Relative strength drove significant portfolio shifts over the course of 2010. Real estate was a heavy weighting in the portfolio from spring into autumn. Starting in the summer and continuing into the winter, there was consistent rotation into economically sensitive areas like basic materials, industrials, retailing and technology. Real estate did not decline in any meaningful way; rather, the relative strength of the more economically sensitive areas increased rapidly, causing the real estate positions to be eliminated.

The strongest performances were in energy, leisure and basic materials. Retailing did not fare as well, after disappointing retail sales figures were announced.

The biggest negative factors in the portfolio performance were two hedging transactions early in its existence. Although hedging can be extraordinarily valuable in years like 2008, it can create underperformance during choppy market environments. The Fund was launched April 28, 2010, almost coincident with the S&P 500’s highest close since March 2009 on April 23 and followed shortly by the “flash crash” of May 6. By May 20, the market had declined enough to activate our hedge. Another decline in June triggered our hedge on July 1. In both cases, the hedging occurred at a point that turned out to be near the end of the declines. The subsequent reversals created significant opportunity cost—enough to put the portfolio behind the market. (Using the S&P 500 price as an approximation, the first hedge cost 4%, while the second cost 7%.)

Although the market had corrections in August and November, neither triggered our hedging indicators. As a result of the smoother equity market trends, the portfolio was able to outperform during the latter part of the year.

Our investment process relies on market action rather than economic forecasts. The economy may recover more powerfully than expected, if the indications provided by relative strength are correct. Strength in economically sensitive sectors suggests that the market believes current growth forecasts are too low. Recently added exposure in international sectors suggests that overseas growth may be underestimated or that the dollar may become weaker. The major risk to the current positive outlook for the equity market may be investor sentiment. Some surveys suggest that investors are somewhat complacent, which may lead to a sideways trend for the time being. Our investment philosophy is firmly grounded in a rotational process driven by relative strength, so we expect to be able to adapt to market conditions as they continue to change.

* Indices are defined as follows:

Standard & Poor’s 500 Index (S&P 500^®) — a capitalization-weighted index covering 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE Euronext issues).

Performance displayed represents past performance which is no guarantee of future results.

The funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investors^SM and Rydex Investments. SI and RDL are affiliates and are subsidiaries of Security Benefit Corporation, which is wholly owned by Guggenheim SBC Holdings, LLC, a special purpose entity managed by an affiliate of Guggenheim Partners, LLC, a diversified financial services firm with more than $100 billion in assets under supervision.

Holdings Diversification (Market Exposure as % of Net Assets)

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes any temporary cash investments.

BMI — Broad Market Index

Ten Largest Holdings (% of Total Net Assets)
PowerShares Dynamic Energy Exploration & Production Portfolio	10.8	%
PowerShares Dynamic Energy Sector Portfolio	10.5	%
PowerShares Dynamic Leisure & Entertainment Portfolio	10.4	%
SPDR S&P International Materials Sector ETF	10.4	%
PowerShares Dynamic Basic Materials Sector Portfolio	10.4	%
SPDR S&P International Consumer Discretionary Sector ETF	10.4	%
SPDR S&P International Industrials Sector ETF	10.4	%
PowerShares Dynamic Pharmaceuticals Portfolio	10.0	%
SPDR S&P Retail ETF	8.7	%
PowerShares Dynamic Semiconductors Portfolio	8.1	%
Top Ten Total	100.1	%

“Ten Largest Holdings” exclude any temporary cash or derivative investments.

12 | the RYDEX|SGI variable trust annual report

PERFORMANCE REPORT AND FUND PROFILE (Unaudited) (concluded)

Cumulative Fund Performance:
April 28, 2010 — December 31, 2010

TOTAL RETURNS FOR THE PERIOD ENDED 12/31/10

	SINCE
	INCEPTION
	(04/28/10)
DWA SECTOR ROTATION FUND		-4.16	%
S&P 500 INDEX		7.07	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged stock index and, unlike the Fund, has no management fees or other operating expenses to reduce its reported returns. Returns are historical and include changes in principal and reinvested dividends and capital gains.

the RYDEX|SGI variable trust annual report | 13

SCHEDULE OF INVESTMENTS December 31, 2010

DWA SECTOR ROTATION FUND

	Shares		Value
EXCHANGE TRADED FUNDS† - 100.1%
UNITED STATES OF AMERICA - 68.9%
PowerShares Dynamic Energy Exploration & Production Portfolio		164,529	$	3,795,683
PowerShares Dynamic Energy Sector Portfolio		100,000		3,741,000
PowerShares Dynamic Leisure & Entertainment Portfolio1		201,163		3,715,481
PowerShares Dynamic Basic Materials Sector Portfolio		104,583		3,706,422
PowerShares Dynamic Pharmaceuticals Portfolio		150,300		3,553,092
SPDR S&P Retail ETF		64,000		3,095,040
PowerShares Dynamic Semiconductors Portfolio1		177,450		2,888,868
Total United States of America				24,495,586
INTERNATIONAL - 31.2%
SPDR S&P International Materials Sector ETF1		120,000		3,712,800
SPDR S&P International Consumer Discretionary Sector ETF1		126,195		3,702,561
SPDR S&P International Industrials Sector ETF1		130,300		3,684,897
Total International				11,100,258
Total Exchange Traded Funds (Cost $32,193,509)				35,595,844

	Face
	Amount		Value
REPURCHASE AGREEMENTS††.2 - 0.7%
Credit Suisse Group issued 12/31/10 at 0.10% due 01/03/11	$	63,697	$	63,697
Morgan Stanley issued 12/31/10 at 0.06% due 01/03/11		63,512		63,512
HSBC Group issued 12/31/10 at 0.16% due 01/03/11		60,790		60,790
Mizuho Financial Group, Inc. issued 12/31/10 at 0.13% due 01/03/11		60,790		60,790
Total Repurchase Agreements (Cost $248,789)				248,789
Total Investments - 100.8% (Cost $32,442,298)			$	35,844,633
Liabilities, Less Other Assets - (0.8)%				(289,578	)
Total Net Assets - 100.0%			$	35,555,055

†	Value determined based on Level 1 inputs — See Note 6.
††	Value determined based on Level 2 inputs — See Note 6.
1	Affiliated security — See Note 8.
2	Repurchase Agreements — See Note 5.

14 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

DWA SECTOR ROTATION FUND

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2010
Assets:
Investments in unaffiliated issuers, at value*	$	17,891,237
Investments in affiliated issuers, at value**		17,704,607
Repurchase agreements, at value		248,789
Total investments		35,844,633
Receivables:
Securities sold		3,062,733
Total Assets		38,907,366
Liabilities:
Payable for:
Securities purchased		3,291,548
Fund shares redeemed		298
Management fees		29,954
Custodian fees		1,030
Transfer agent/maintenance fees		7,489
Investor service fees		7,489
Portfolio accounting fees		2,995
Other		11,508
Total Liabilities		3,352,311
Net Assets	$	35,555,055
Net assets consist of:
Paid in capital	$	34,297,880
Undistributed net investment income		42,734
Accumulated net realized loss on investments		(2,187,894	)
Net unrealized appreciation on investments		3,402,335
Net assets	$	35,555,055
Capital shares outstanding		1,483,842
Net asset value per share	$	23.96
*   Investments in unaffiliated issuers, at cost	$	16,128,157
** Investments in affiliated issuers, at cost		16,065,352
Repurchase agreements, at cost		248,789
Total Cost	$	32,442,298

STATEMENT OF OPERATIONS

Period Ended December 31, 2010†
Investment Income:
Dividends††	$	402,762
Interest		1,429
Total investment income		404,191
Expenses:
Management fees		196,928
Transfer agent and administrative fees		49,232
Investor service fees		49,232
Portfolio accounting fees		19,693
Trustees’ fees*		1,721
Audit and service fees		33,651
Miscellaneous		11,000
Total expenses		361,457
Net investment income		42,734
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(246,844	)
Investments in unaffiliated issuers		(1,953,062	)
Realized gain distributions from other investment companies		12,012
Net realized loss		(2,187,894	)
Net change in unrealized appreciation (depreciation) on:
Investments		3,402,335
Net change in unrealized appreciation (depreciation)		3,402,335
Net realized and unrealized gain		1,214,441
Net increase in net assets resulting from operations	$	1,257,175

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
†	Since the commencement of operations: April 28, 2010.
††	Includes dividends of $61,750 from affiliated issuers.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 15

DWA SECTOR ROTATION FUND

STATEMENT OF CHANGES IN NET ASSETS

	Period
	Ended
	December 31,
	2010		*
Increase (Decrease) In Net Assets From Operations:
Net investment income	$	42,734
Net realized loss on investments		(2,187,894	)
Net change in unrealized appreciation (depreciation) on investments		3,402,335
Net increase in net assets resulting from operations		1,257,175
Distributions to Shareholders		—
Capital Share Transactions:
Proceeds from sale of shares		44,340,023
Cost of shares redeemed		(10,042,143	)
Net increase from capital share transactions		34,297,880
Net increase in net assets		35,555,055
Net Assets:
Beginning of period		—
End of period	$	35,555,055
Undistributed net investment income at end of period	$	42,734
Capital Share Activity:
Shares sold		1,957,608
Shares redeemed		(473,766	)
Net increase in shares		1,483,842

* Since the commencement of operations: April 28, 2010.

16 | the RYDEX|SGI variable trust annual report See Notes to Financial Statements.

DWA SECTOR ROTATION FUND

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

	Period Ended
	December 31,
	2010		a
Per Share Data
Net asset value, beginning of period	$	25.00
Income (loss) from investment operations:
Net investment incomeb		.03
Net loss on investments (realized and unrealized)		(1.07	)
Total from investment operations		(1.04	)
Net asset value, end of period	$	23.96
Total Returnc		(4.16	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	35,555
Ratios to average net assetse:
Net investment income		0.22	%
Total expensesd		1.84	%
Portfolio turnover rate		312	%

a	Since the commencement of operations: April 28, 2010.
b	Net investment income per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
d	Total expense information does not include expenses of the underlying funds in which the Fund invests.
e	Annualized.

See Notes to Financial Statements. the RYDEX|SGI variable trust annual report | 17

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies Organization

The Rydex Variable Trust (the “Trust”), a Delaware business trust, is registered with the SEC under the Investment Company Act of 1940 (the “1940 Act”) as a non-diversified, open-ended investment company and is authorized to issue an unlimited number of shares (no par value). The Trust offers shares of the Funds to insurance companies for their variable annuity and variable life insurance contracts.

At December 31, 2010, the Trust consisted of fifty-eight separate Funds. This report covers the Dorsey, Wright & Associates, Inc. (“DWA”) Funds (the “Funds”), while the other funds are contained in separate reports.

Each Fund, a “fund of funds,” seeks to achieve its investment objective by investing primarily in a portfolio of exchange-traded funds (“ETFs”) (“underlying funds”) or other exchange-traded products (“ETPs”) to allocate its investment exposure to market segments including domestic equity, international equity, fixed income and alternative assets.

Security Global Investors (“SGI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, LLC (“RDL”) acts as principal underwriter for the Trust. SGI, RFS and RDL are affiliated entities.

SGI makes investment decisions for the assets of the Funds based on investment management strategies generated by the Funds’ sub-advisor, and continuously reviews, supervises, and administers each Funds’ investment program. The Board of Trustees of the Trust supervises SGI and establishes policies that SGI must follow in its day-to-day management activities.

DWA serves as investment sub-advisor (the “Sub-Advisor”) and is responsible, subject to the supervision and control of SGI and the Trust’s Board, for the purchase, retention and sale of securities in the Funds’ investment portfolios.

Significant Accounting Policies

The following significant accounting policies and the preparation of financial statements are in conformity with U.S. generally accepted accounting principles and are consistently followed by the Trust. This requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

A. Open-ended investment companies (“Mutual Funds”) are valued at their Net Asset Value (the “NAV”) as of the close of business, usually 4:00 p.m. on the valuation date. ETFs and closed-end investment companies (“closed-end funds”) are valued at the last quoted sales price.

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. (Eastern Time) on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date. Short-term debt securities, if any, with a maturity date of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.

Investments for which market quotations are not readily available are fair valued as determined in good faith by SGI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade; (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market; and (iii) other information and considerations, including current values in related markets.

B. Securities transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discount, is accrued on a daily basis. Distributions received from investments in funds are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

C. Distributions of net investment income and net realized gains, if any, are declared and paid at least annually. Distributions are recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles.

D. The Funds may leave cash overnight in their cash account with the custodian, U.S. Bank. Periodically, a Fund may have cash due to the custodian bank as an

18 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.

E. Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments

The Funds are subject to fund of funds risk. By investing in the underlying funds indirectly through the Fund, an investor will incur not only a proportionate share of the expenses of the underlying funds held by the Fund (including operating costs and management fees), but also expenses of the Fund. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying funds.

The Funds invest to a significant extent in shares of ETFs to gain exposure to their investment objectives. ETFs are pooled investment vehicles, which may be managed or unmanaged, that generally seek to track the performance of a specific index. Although individual shares of an ETF are traded on an exchange (such as the NYSE, AMEX, or NASDAQ), large blocks of shares of ETFs are redeemable at net asset value. This ability to redeem large blocks of shares has historically resulted in the market price of individual shares of ETFs being at or near the net asset value of the ETF’s underlying investments. However, shares of ETFs may trade below their NAV. The NAV of shares will fluctuate with changes in the market value of the ETF’s holdings. The trading prices of shares will fluctuate in accordance with changes in NAV as well as market supply and demand. The difference between the bid price and ask price, commonly referred to as the “spread,” will also vary for an ETF depending on the ETF’s trading volume and market liquidity. Generally, the greater the trading volume and market liquidity, the smaller the spread is and vice versa. Any of these factors may lead to an ETF’s shares trading at a premium or a discount to NAV. The Funds, from time to time, may invest in ETFs that are not registered pursuant to the Investment Company Act of 1940. Such ETFs may include commodity pools that are registered pursuant to the Securities Act of 1933 and the Commodity Exchange Act.

3. Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays SGI investment advisory fees calculated at an annual percentage rate of 1.00% of the average daily net assets of each Fund.

SGI pays the Sub-Advisor out of the advisory fees it receives. In addition, SGI bears all of its own costs associated with providing these services and the expenses of the Trustees that are affiliated with SGI. SGI may make payments from its own resources to broker-dealers and other financial institutions in connection with the sale of Fund shares.

Each Fund indirectly bears a proportionate share of the total operating expenses (including investment management, shareholder servicing, custody, transfer agency, audit and other expenses) of the underlying funds in which the Fund invests.

RFS provides transfer agent and administrative services to the Funds calculated at an annual percentage rate of 0.25% of the average daily net assets of each Fund. RFS also provides accounting services to the Funds calculated at an annualized rate of 0.10% on the first $250 million of the average daily net assets, 0.075% on the next $250 million of the average daily net assets, 0.05% on the next $250 million of the average daily net assets, and 0.03% on the average daily net assets over $750 million of each of the Funds.

RFS engages external service providers to perform other necessary services for the Trust, such as auditing services, legal services, printing and mailing, etc., on a pass-through basis. Such expenses vary from Fund to Fund and are allocated to the Funds based on relative net assets.

The Trust has adopted an Investor Services Plan for which RDL and other firms that provide investor services (“Service Providers”) may receive compensation. The Funds will pay investor service fees at an annual rate not to exceed 0.25% of average daily net assets. RDL in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for investor services it performs.

Certain officers and trustees of the Trust are also officers of SGI, RFS and the RDL.

4. Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute substantially all net investment income and capital gains to shareholders.

the RYDEX|SGI variable trust annual report | 19

NOTES TO FINANCIAL STATEMENTS (continued)

Tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns are evaluated to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (fiscal year 2010), and has concluded that no provision for income tax is required in the Funds’ financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for losses deferred due to wash sales.

Permanent book and tax basis differences, if any, will result in reclassifications. This may include net operating losses not utilized during the current period and expired capital loss carryforward. These reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term capital gain remaining at fiscal year end is distributed in the following year.

Tax basis capital losses in excess of capital gains are carried forward to offset future net capital gains.

The tax character of distributions paid during 2010 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
DWA Flexible Allocation Fund	$	—	$	—	$	—
DWA Sector Rotation Fund		—		—		—

The tax character of distributable earnings/(accumulated losses) at December 31, 2010 was as follows:

	Undistributed		Undistributed		Net
	Ordinary		Long-Term		Unrealized		Capital Loss
Fund	Income		Capital Gain		Appreciation		Carryforward
DWA Flexible Allocation Fund	$	119,283	$	—	$	1,378,683	$	—
DWA Sector Rotation Fund		42,734		—		3,062,342		(1,847,901	)1

Capital Loss Carryforward amounts may be limited due to Federal income tax regulations.

¹ Expires in 2018.

At December 31, 2010, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

			Tax		Tax			Net
	Tax		Unrealized		Unrealized			Unrealized
Fund	Cost		Gain		Loss			Gain
DWA Flexible Allocation Fund	$	19,947,529	$	1,387,232	$	(8,549	)		$1,378,683
DWA Sector Rotation Fund		32,782,291		3,085,745		(23,403	)		3,062,342

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

The repurchase agreements executed by the joint account and outstanding as of December 31, 2010, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.10% due 01/03/11	$	82,186,888	$	82,186,888	$	82,187,117
Morgan Stanley	0.06% due 01/03/11		70,000,000		70,000,000		70,000,117
HSBC Group	0.16% due 01/03/11		67,000,000		67,000,000		67,000,298
Mizuho Financial Group, Inc.	0.13% due 01/03/11		67,000,000		67,000,000		67,000,242
				$	286,186,888	$	286,187,774

20 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (continued)

As of December 31, 2010, the collateral for the repurchase agreements was as follows:

Security Type	Maturity Dates		Range of Rates			Par Value		Market Value
U.S. Treasury Notes		11/15/19		3.38	%	$	80,807,600	$	83,830,766
U.S. Treasury Bills		02/24/11 – 11/17/11		0.00	%		108,335,400		108,283,700
U.S. TIP Bond		04/15/28		3.63	%		24,211,900		42,104,145
U.S. TIP Note		04/15/14		1.25	%		26,932,400		29,295,999
U.S. Treasury Bonds		08/15/20 – 05/15/39		4.25% – 8.75	%		27,718,800		28,396,387
								$	291,910,997

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees, reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into repurchase agreements to evaluate potential risks.

6. Fair Value Measurement

In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 —	quoted prices in active markets for identical securities.
Level 2 —	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 —	significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2010:

	Level 1		Level 2		Level 3
	Investments		Investments		Investments
Fund	In Securities		In Securities		In Securities		Total
Assets
DWA Flexible Allocation Fund	$	20,681,425	$	644,787	$	—	$	21,326,212
DWA Sector Rotation Fund		35,595,844		248,789		—		35,844,633

For the period ended December 31, 2010, there were no significant transfers between Levels.

7. Securities Transactions

During the period ended December 31, 2010, purchases and sales of investment securities, excluding short-term and temporary cash investments, were:

	DWA Flexible		DWA Sector
	Allocation Fund		Rotation Fund
Purchases	$	60,418,011	$	119,379,019
Sales	$	41,143,965	$	84,985,602

the RYDEX|SGI variable trust annual report | 21

NOTES TO FINANCIAL STATEMENTS (continued)

8. Affiliated Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under SGI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act. Transactions during the period ended December 31, 2010 in which the portfolio company is an “affiliated person” are as follows:

		Value							Value		Shares
		April 28,							December 31,		December 31,		Investment
Fund	Security	2010		Additions		Reductions			2010		2010		Income
DWA Sector Rotation Fund	Exchange Traded Funds:
	PowerShares Dynamic Leisure & Entertainment Portfolio		—	$	5,592,250	$	(2,353,701	)	$	3,715,481		201,163	$	29,679
	PowerShares Dynamic Semiconductors Portfolio		—		4,357,841		(1,394,369	)		2,888,868		177,450		3,557
	SPDR S&P International Materials Sector ETF		—		3,519,914		—			3,712,800		120,000		6,304
	SPDR S&P International Industrials Sector ETF		—		3,440,032		—			3,684,897		130,300		8,645
	SPDR S&P International Consumer Discretionary Sector ETF		—		3,573,541		(423,312	)		3,702,561		126,195		13,565
	Total		—	$	20,483,578	$	(4,171,382	)	$	17,704,607		755,108	$	61,750

22 | the RYDEX|SGI variable trust annual report

NOTES TO FINANCIAL STATEMENTS (concluded)

9. Line of Credit

The Trust has secured an uncommitted, $75,000,000 line of credit with U.S. Bank, N.A. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly. The maximum loan amount outstanding per Fund should be the lesser of: an amount which, when added to the total of other outstanding loan amounts under this agreement, exceeds the total line of credit, 33 1/3% of a Fund’s net assets, 33 1/3% of a Fund’s assets held by the Custodian or 33 1/3% of the sum of a Fund’s securities on any given day. This line of credit expires on June 15, 2011. As of and for the period ended December 31, 2010, the Funds did not have any outstanding borrowings under this agreement.

10. Acquisition of Security Benefit Corporation

Guggenheim SBC Holdings, LLC (“Guggenheim SBC Holdings”), an investor group managed by Guggenheim Partners, LLC (“Guggenheim”), acquired control of Security Benefit Corporation (“SBC”), the parent company of Rydex Advisors II, LLC (formerly PADCO Advisors II, Inc.), the Funds’ investment advisor (the “Investment Advisor”), pursuant to an agreement entered between SBC and Guggenheim SBC Holdings. Under the agreement, Guggenheim SBC Holdings received a 100% ownership stake in SBC and consequently acquired control of the Investment Advisor (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction did not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. The Purchase Transaction closed on July 30, 2010.

Under the Investment Company Act of 1940, the closing of the Purchase Transaction had the effect of terminating the Funds’ investment advisory agreement with the Investment Advisor and any investment sub-advisory agreements entered on behalf of a Fund (together, the “Previous Agreements”). New investment advisory and sub-advisory agreements (“New Agreements”) were approved by Fund shareholders in a series of special meetings of shareholders. The terms of the New Agreements are substantially identical to the corresponding Previous Agreements, except with respect to the date of execution.

11. Distributor and Transfer Agent Change

Effective July 30, 2010, the Funds’ Distributor, Rydex Distributors, Inc., a Maryland corporation, became Rydex Distributors, LLC, a Kansas limited liability company, and Rydex Fund Services, Inc., the Funds’ transfer agent, became Rydex Fund Services, LLC, a Kansas limited liability company.

12. Subsequent Events

Effective January 3, 2011, Rydex Advisors II, LLC, the Funds’ investment advisor was merged with and into Security Investors, LLC, which will operate under the name SGI.

The foregoing internal restructuring is not expected to affect the investment advisory services rendered to the Funds, which will continue to be managed on a day-to-day basis by the same teams of portfolio managers. The investment philosophies, strategies, and processes of the Funds also will remain the same.

In order to implement the restructuring, technical amendments were made to the Funds’ investment advisory agreement with Rydex Advisors II, LLC, in order to reflect the change of the identity of the investment advisor. No other changes will be made to the investment advisory agreement of the Funds, and the fees and expenses of the Funds will remain the same.

the RYDEX|SGI variable trust annual report | 23

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders of the Rydex Variable Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of DWA Flexible Allocation Fund and DWA Sector Rotation Fund (two of the series constituting the Rydex Variable Trust) (the “Funds”) as of December 31, 2010, and the related statements of operations, statements of changes in net assets, and financial highlights for the period from April 28, 2010 (commencement of operations) through December 31, 2010. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above listed Funds at December 31, 2010, and the results of their operations, the changes in their net assets, and their financial highlights for the period from April 28, 2010 (commencement of operations) through December 31, 2010, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 24, 2011

24 | the RYDEX|SGI variable trust annual report

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended December 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Change of Address

Effective January 17, 2011, the RYDEX | SGI office was moved to Four Irvington Centre, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

SGI Board Review and Approval of the Investment Advisory Agreements

At an in-person meeting of the Trust’s Board of Trustees held on January 28, 2010, called for the purpose of, among other things, voting on the approval of the investment advisory and sub-advisory agreements applicable to the series of the Trust (the “Funds”), the Trust’s Board of Trustees, including the Independent Trustees, unanimously approved the continuation for a two-year period the investment advisory agreements between the Trust and Rydex Advisors II, LLC (formerly, PADCO Advisors II, Inc., and referred to herein as “Rydex”). In reaching this conclusion, the Trustees requested and obtained from Rydex and each investment sub-adviser such information as the Trustees deemed reasonably necessary to evaluate the proposed renewal of the agreements. The Trustees carefully evaluated this information and were advised by legal counsel with respect to their deliberations.

In considering the approval of the investment advisory and sub-advisory agreements, the Independent Trustees evaluated a number of considerations, including, among others, (1) the nature, extent, and quality of the advisory services to be provided by Rydex; (2) the investment performance of the Funds and Rydex; (3) the costs of services provided by Rydex and the profits derived by Rydex from its relationship with the Funds; (4) a comparison of each Funds’ expense ratios and those of similarly situated funds; (5) benefits (such as soft dollars) to Rydex and its affiliates from their relationship with the Funds (and any corresponding benefits to the Funds); (6) other factors the Board deemed to be relevant. The Board also took into account other considerations that it believed, in light of the legal advice furnished to the Independent Trustees by their independent legal counsel and the Trustees’ own business judgment, to be relevant. Following its review, the Trust’s Board determined that the investment advisory agreement will enable Fund shareholders to obtain high quality services at a cost that is appropriate, reasonable and in the best interests of shareholders. Accordingly, the Trustees, including the Independent Trustees, unanimously approved the renewal of the investment advisory agreements based upon the following considerations, among others:

• The nature, extent and quality of the advisory services to be provided. The Board of Trustees concluded that Rydex is capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided in the past, Rydex’s management capabilities demonstrated with respect to the Funds and other mutual funds managed by Rydex, the professional qualifications and experience of Rydex and Rydex’s investment and management oversight processes. The Trustees also determined that Rydex proposed to provide investment and related services that were of the same quality and quantity as services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Funds’ operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Fund. With respect to the Funds, the Trustees concluded on the basis of information compiled by Morningstar that Rydex and the investment sub-advisers had achieved investment performance that was acceptable, and competitive or superior relative to comparable funds over trailing periods.

the RYDEX|SGI variable trust annual report | 25

OTHER INFORMATION (Unaudited) (concluded)

• The cost of advisory services provided and the level of profitability. On the basis of the Board’s review of the fees to be charged by Rydex for investment advisory and other services, and the estimated profitability of Rydex’s relationship with the Funds, the Board concluded that the level of investment advisory fees and Rydex’s profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and Rydex and its affiliates. On the basis of comparative information compiled by Morningstar, the Trustees determined that the advisory fees and estimated overall expense ratio of each Fund are consistent with, and often below, industry medians, particularly with respect to mutual funds of comparable size.

• Whether the advisory fees reflect economies of scale. The Trustees concluded that the Funds’ investment advisory fees appropriately reflect the current economic environment for Rydex and the competitive nature of the mutual fund market.

• The extent to which economies of scale will be realized as the Fund grows. While the Funds’ investment advisory fees do not reduce should fund assets grow meaningfully, the Trustees determined that the investment advisory fees payable by the funds already reflect potential future economies of scale to some extent by virtue of their competitive levels (determined with reference to industry standards as reported by Lipper) and Rydex’s estimated profitability at current or foreseeable asset levels. The Trustees also considered that they will have the opportunity to periodically re-examine whether each Fund has achieved economies of scale, and the appropriateness of investment advisory fees payable to Rydex in the future.

26 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of SGI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

All Trustees and Officers may be reached c/o Security Global Investors, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.

INDEPENDENT TRUSTEES

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds — 1997		150
Trustee, Chairman of the	Rydex Variable Trust — 1998
Board (1940)	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Retired

Corey A. Colehour	Rydex Series Funds — 1993	150
Trustee (1945)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005)

J. Kenneth Dalton	Rydex Series Funds — 1995	150
Trustee (1941)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group

Werner E. Keller	Rydex Series Funds — 2005	150
Trustee (1940)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005

Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)

Thomas F. Lydon, Jr.	Rydex Series Funds — 2005	150
Trustee (1960)	Rydex Variable Trust — 2005
	Rydex Dynamic Funds — 2005
	Rydex ETF Trust — 2005

Principal Occupations During Past Five Years: President, Global Trends Investments

Patrick T. McCarville	Rydex Series Funds — 1997	150
Trustee (1942)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.

Roger Somers	Rydex Series Funds — 1993	150
Trustee (1944)	Rydex Variable Trust — 1998
	Rydex Dynamic Funds — 1999
	Rydex ETF Trust — 2003

Principal Occupations During Past Five Years: Owner, Arrow Limousine

the RYDEX|SGI variable trust annual report | 27

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued)

EXECUTIVE OFFICERS
Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Richard M. Goldman* President (1961)	President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005)
Michael P. Byrum* Vice President (1970)	Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007)
Nikolaos Bonos* Vice President and Treasurer (1963)	Senior Vice President, Security Investors, LLC; and Vice President, Security Benefit Asset Management Holdings, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney Catalucci* Chief Compliance Officer and Secretary (1966)	Vice President, Security Benefit Asset Management Holdings, LLC; and Senior Vice President and Chief Compliance Officer, Security Investors, LLC (2010 to present); Senior Vice President, Security Global Investors, LLC (2010 to 2011); Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present); Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)

28 | the RYDEX|SGI variable trust annual report

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

EXECUTIVE OFFICERS — (concluded)
Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Keith Fletcher* Vice President (1958)	Vice President of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
Amy Lee* Vice President and Assistant Secretary (1960)	Vice President and Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present)
Joseph Arruda* Assistant Treasurer (1966)	Vice President, Security Investors, LLC (2010 to present); Vice President, Security Global Investors, LLC (2010 to 2011); Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration Rydex Investments (2001 to present)

* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments.

the RYDEX|SGI variable trust annual report | 29

805 King Farm Boulevard, Suite 600
Rockville, MD 20850
www.rydex-sgi.com
800.820.0888
RVDWA-2-1210x1211

Item 2. Code of Ethics.

The registrant’s Board of Trustees has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. 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, 2010 and December 31, 2009 were $984,960 and $991,250, respectively. The aggregate Audit Related Fees by the Trust’s principal accountant billed for the fiscal years ended December 31, 2010 and December 31, 2009 were $21,465 and $35,625, 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, 2010 and December 31, 2009 were $0 and $0, 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 $0 and $0, 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. 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, 2011, 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 Security Investors, LLC, d/b/a Security Global Investors (“SGI” or the “Advisor”), the investment advisor and manager of the Trust, or Rydex Distributors, LLC. (“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 SGI 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 SGI, 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 SGI’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.

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/ Richard M. Goldman Richard M. Goldman, President
Date March 10, 2011

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/ Richard M. Goldman Richard M. Goldman, President
Date March 10, 2011
By (Signature and Title)*	/s/ Nikolaos Bonos Nikolaos Bonos, Vice President and Treasurer
Date March 10, 2011

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

EX-99.CODE ETH

Exhibit 99.CODE ETH

Rydex Series Funds
Rydex Dynamic Funds
Rydex Variable Trust
Rydex ETF Trust

FINANCIAL OFFICER CODE OF ETHICS

I. Introduction

     The reputation and integrity of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust (each a “Trust” and, collectively, the “Trusts”) are valuable assets that are vital to the Trusts’ success. The Trusts’ senior financial officers (“SFOs,”) are responsible for conducting the Trusts’ business in a manner that demonstrates a commitment to the highest standards of integrity. The Trusts’ SFOs are set forth on Appendix A of this Code, as may be amended from time to time, and include the principal executive officer, the principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function.

     The Sarbanes-Oxley Act of 2002 (the “Act”) effected sweeping corporate disclosure and financial reporting reform on public companies, including mutual funds, to address corporate malfeasance and assure investors that the companies in which they invest are accurately and completely disclosing financial information. Under the Act, all public companies (including the Trusts) must either have a code of ethics for their SFOs, or disclose why they do not. The Act was intended to foster corporate environments which encourage employees to question and report unethical and potentially illegal business practices. The Trusts have chosen to adopt this Financial Officer Code of Ethics (the “Code”) to encourage its SFOs to act in a manner consistent with the highest principles of ethical conduct.

II. Purposes of the Code

     The purposes of this Code are:

• To promote honest and ethical conduct by the Trusts’ SFOs, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

• To assist the Trusts’ SFOs in recognizing and avoiding conflicts of interest, including disclosing to an appropriate person any material transaction or relationship that reasonably could be expected to give rise to such a conflict;

• To promote full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trusts file with, or submit to, the SEC and in other public communications made by the Trusts;

• To promote compliance with applicable laws, rules and regulations;

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• To encourage the prompt internal reporting to an appropriate person of violations of this Code; and

• To establish accountability for adherence to this Code.

III. Questions about this Code

     Each Trust’s compliance officer designated to oversee the Trust’s Code of Ethics adopted pursuant to Rule 17j-1 shall serve as Compliance Officer for the implementation and administration of this Code. You should direct your questions about this Code to the Compliance Officer.

IV. Conduct Guidelines

     Each Trust has adopted the following guidelines under which the Trust’s SFOs must perform their official duties and conduct the business affairs of the Trust.

1.	Ethical and honest conduct is of paramount importance. Each Trust’s SFOs must act with honesty and integrity and avoid violations of this Code, including the avoidance of actual or apparent conflicts of interest with the Trust in personal and professional relationships.
2.	SFOs must disclose material transactions or relationships. Each Trust’s SFOs must disclose to the Compliance Officer any actual or apparent conflicts of interest the SFO may have with the Trust that reasonably could be expected to give rise to any violations of this Code. Such conflicts of interest may arise as a result of material transactions or business or personal relationships to which the SFO may be a party. If it is not possible to disclose the matter to the Compliance Officer, it should be disclosed to the Trust’s Chief Financial Officer, Chief Executive Officer or another appropriate person. In addition to disclosing any actual or apparent conflicts of interest in which an SFO is personally involved, the Trust’s SFOs have an obligation to report any other actual or apparent conflicts which they discover or of which they otherwise become aware. If you are unsure whether a particular fact pattern gives rise to a conflict of interest, or whether a particular transaction or relationship is “material,” you should bring the matter to the attention of the Compliance Officer
3.	Standards for quality of information shared with Trust service providers. Each Trust’s SFOs must at all times seek to provide information to the Trust’s service providers (adviser, administrator, outside auditor, outside counsel, custodian, etc.) that is accurate, complete, objective, relevant, timely, and understandable.
4.	Standards for quality of information included in periodic reports. Each Trust’s SFOs must at all times endeavor to ensure full, fair, timely, accurate, and understandable disclosure in the Trust’s periodic reports.

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5.	Compliance with laws. Each Trust’s SFOs must comply with the federal securities laws and other laws and rules applicable to the Trusts, such as the Internal Revenue Code.
6.	Standard of care. Each Trust’s SFOs must at all times act in good faith and with due care, competence and diligence, without misrepresenting material facts or allowing your independent judgment to be subordinated. Each Trust’s SFOs must conduct the affairs of the Trust in a responsible manner, consistent with this Code.
7.	Confidentiality of information. Each Trust’s SFOs must respect and protect the confidentiality of information acquired in the course of their professional duties, except when authorized by the Trust to disclose it or where disclosure is otherwise legally mandated. You may not use confidential information acquired in the course of your work for personal advantage.
8.	Sharing of information and educational standards. Each Trust’s SFOs should share information with relevant parties to keep them informed of the business affairs of the Trust, as appropriate, and maintain skills important and relevant to the Trust’s needs.
9.	Promote ethical conduct. Each Trust’s SFOs should at all times proactively promote ethical behavior among peers in your work environment.
10.	Standards for recordkeeping. Each Trust’s SFOs must at all times endeavor to ensure that the Trust’s financial books and records are thoroughly and accurately maintained to the best of their knowledge in a manner consistent with applicable laws and this Code.

V. Waivers of this Code

     You may request a waiver of a provision of this Code by submitting your request in writing to the Compliance Officer for appropriate review. For example, if a family member works for a service provider that prepares a Trust’s financial statements, you may have a potential conflict of interest in reviewing those statements and should seek a waiver of this Code to review the work. An executive officer of each Trust, or another appropriate person (such as a designated Board or Audit Committee member), will decide whether to grant a waiver. All waivers of this code must be disclosed to the applicable Trust’s shareholders to the extent required by SEC rules.

VI. Affirmation of the Code

     Upon adoption of the Code, each Trusts’ SFOs must affirm in writing that they have received, read and understand the Code, and annually thereafter must affirm that they have complied with the requirements of the Code. These affirmations may be made electronically via the Financial Tracking website (www.financial-tracking.com). To the extent necessary, each Trusts’ Compliance Officer will provide guidance on the conduct required by this Code and the

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manner in which violations or suspected violations must be reported and waivers must be requested.

VII. Reporting Violations

     In the event that an SFO discovers or, in good faith, suspects a violation of this Code, the SFO must immediately report the violation or suspected violation to the Compliance Officer. The Compliance Officer may, in his or her discretion, consult with another member of the Trusts’ senior management or the Board in determining how to address the suspected violation. For example, a Code violation may occur when a Trust periodic report or financial statement omits a material fact, or is technically accurate but, in the view of the SFO, is written in a way that obscures its meaning.

     SFOs who report violations or suspected violations in good faith will not be subject to retaliation of any kind. Reported violations will be investigated and addressed promptly and will be treated as confidential to the extent possible.

VIII. Violations of the Code

     Dishonest or unethical conduct or conduct that is illegal will constitute a violation of this Code, regardless of whether this Code specifically refers to such particular conduct. A violation of this Code may result in disciplinary action, up to and including removal as an SFO of the Trusts. A variety of laws apply to the Trusts and their operations, including the Securities Act of 1933, the Investment Company Act of 1940, state laws relating to duties owed by Trust officers, and criminal laws. The Trusts will report any suspected criminal violations to the appropriate authorities, and will investigate, address and report, as appropriate, non-criminal violations.

Adopted: August 25, 2003

Richard Goldman	Date
President
Nikolaos Bonos	Date
Treasurer
Mike Byrum	Date
Chief Investment Officer

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APPENDIX A

Senior Financial Officers

As of January 1, 2011 each Trust’s senior financial officers are:

Richard Goldman
Nikolaos Bonos
Mike Byrum

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EX-99.CERT

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

CERTIFICATION

I, Richard M. Goldman, 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, 2011	/s/ Richard M. Goldman Richard M. Goldman,
	President

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

CERTIFICATION

I, Nikolaos 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, 2011	/s/ Nikolaos Bonos Nikolaos Bonos,
	Vice President and Treasurer

EX-99.906CERT

EX. 12(b)(i)

CERTIFICATION

I, Richard M. Goldman, 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, 2011
	/s/ Richard M. Goldman Richard M. Goldman,
	President

EX. 12(b)(ii)

CERTIFICATION

I, Nikolaos 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, 2011
	/s/ Nikolaos Bonos Nikolaos Bonos,
	Vice President and Treasurer