N-CSR/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 08821

Rydex Variable Trust
(Exact name of registrant as specified in charter)

9601 Blackwell Road, Suite 500

Rockville, Maryland 20850
(Address of principal executive offices) (Zip code)

Carl G. Verboncoeur
Rydex Variable Trust
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Name and address of agent for service)

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

Date of fiscal year end: December 31, 2008

Date of reporting period: December 31, 2008

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

Rydex Variable Trust Annual Report

DECEMBER 31, 2008

RYDEX VARIABLE TRUST ANNUAL REPORT

BENCHMARK FUNDS

NOVA FUND	RUSSELL 2000® 2x STRATEGY FUND	INVERSE DOW 2x STRATEGY FUND
INVERSE S&P 500 STRATEGY FUND	RUSSELL 2000 ® 1.5x STRATEGY FUND	SMALL-CAP VALUE FUND
NASDAQ-100 ® FUND	INVERSE RUSSELL 2000 ®	MID-CAP VALUE FUND
(Formerly, OTC Fund)	STRATEGY FUND
		LARGE-CAP VALUE FUND
INVERSE NASDAQ-100 ®	GOVERNMENT LONG BOND
STRATEGY FUND	1.2x STRATEGY FUND	SMALL-CAP GROWTH FUND
(Formerly, Inverse OTC Strategy Fund)
	INVERSE GOVERNMENT LONG BOND	MID-CAP GROWTH FUND
S&P 500 2x STRATEGY FUND	STRATEGY FUND
		LARGE-CAP GROWTH FUND
NASDAQ-100® 2x STRATEGY FUND	EUROPE 1.25x STRATEGY FUND
(Formerly, OTC 2x Strategy Fund)		U.S. GOVERNMENT
	JAPAN 1.25x STRATEGY FUND	MONEY MARKET FUND
MID-CAP 1.5x STRATEGY FUND
	DOW 2x STRATEGY FUND
INVERSE MID-CAP STRATEGY FUND

GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888.

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, Inc.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS   2

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS   3

ABOUT SHAREHOLDERS’ FUND EXPENSES   4

PERFORMANCE REPORTS AND FUND PROFILES   6

SCHEDULES OF INVESTMENTS   30

STATEMENTS OF ASSETS AND LIABILITIES   118

STATEMENTS OF OPERATIONS   122

STATEMENTS OF CHANGES IN NET ASSETS   126

FINANCIAL HIGHLIGHTS   134

NOTES TO FINANCIAL STATEMENTS   138

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   150

OTHER INFORMATION   151

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   152

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.

Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.

Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.

It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases), home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.

Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500^® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.

Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP.

The industry’s first managed futures mutual fund—the Rydex Managed Futures Strategy Fund—surpassed the $1-billion mark as investors embrace alternatives strategies and investments to assist not only in managing portfolio risk, but also the potential of enhancing returns.

The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.

In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets.

Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.

We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

2    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Rydex Funds described in this report are benchmarked daily to leveraged 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.

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.

THE RYDEX 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, 2008 and ending December 31, 2008.

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 VARIABLE TRUST ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

					Beginning		Ending		Expenses
	Expense				Account Value		Account Value		Paid During
	Ratio			†	June 30, 2008		December 31, 2008		Period		*
Table 1. Based on actual Fund return
Nova Fund		1.56	%		$	1,000.00	$	561.30	$	6.12
Inverse S&P 500 Strategy Fund		1.72	%			1,000.00		1,230.10		9.64
NASDAQ-100® Fund		1.59	%			1,000.00		660.30		6.64
Inverse NASDAQ-100® Strategy Fund		1.74	%			1,000.00		1,335.60		10.22
S&P 500 2x Strategy Fund		1.71	%			1,000.00		432.90		6.16
NASDAQ-100® 2x Strategy Fund		1.75	%			1,000.00		373.40		6.04
Mid-Cap 1.5x Strategy Fund		1.72	%			1,000.00		495.20		6.46
Inverse Mid-Cap Strategy Fund		1.71	%			1,000.00		1,299.70		9.88
Russell 2000® 2x Strategy Fund		1.73	%			1,000.00		434.90		6.24
Russell 2000® 1.5x Strategy Fund		1.73	%			1,000.00		576.70		6.86
Inverse Russell 2000® Strategy Fund		1.72	%			1,000.00		1,147.90		9.29
Government Long Bond 1.2x Strategy Fund		1.25	%			1,000.00		1,439.20		7.66
Inverse Government Long Bond Strategy Fund		2.68	%			1,000.00		709.90		11.52
Europe 1.25x Strategy Fund		1.70	%			1,000.00		545.10		6.60
Japan 1.25x Strategy Fund		1.69	%			1,000.00		722.00		7.32
Dow 2x Strategy Fund		1.72	%			1,000.00		535.90		6.64
Inverse Dow 2x Strategy Fund		1.73	%			1,000.00		1,235.80		9.72
Small-Cap Value Fund		1.56	%			1,000.00		671.60		6.55
Mid-Cap Value Fund		1.56	%			1,000.00		662.20		6.52
Large-Cap Value Fund		1.57	%			1,000.00		676.00		6.61
Small-Cap Growth Fund		1.55	%			1,000.00		737.80		6.77
Mid-Cap Growth Fund		1.55	%			1,000.00		657.50		6.46
Large-Cap Growth Fund		1.56	%			1,000.00		656.70		6.50
U.S. Government Money Market Fund		1.26	%			1,000.00		1,003.80		6.35
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund		1.56	%			1,000.00		1,017.29		7.91
Inverse S&P 500 Strategy Fund		1.72	%			1,000.00		1,016.49		8.72
NASDAQ-100® Fund		1.59	%			1,000.00		1,017.14		8.06
Inverse NASDAQ-100® Strategy Fund		1.74	%			1,000.00		1,016.39		8.82
S&P 500 2x Strategy Fund		1.71	%			1,000.00		1,016.54		8.67
NASDAQ-100® 2x Strategy Fund		1.75	%			1,000.00		1,016.34		8.87
Mid-Cap 1.5x Strategy Fund		1.72	%			1,000.00		1,016.49		8.72
Inverse Mid-Cap Strategy Fund		1.71	%			1,000.00		1,016.54		8.67
Russell 2000® 2x Strategy Fund		1.73	%			1,000.00		1,016.44		8.77
Russell 2000® 1.5x Strategy Fund		1.73	%			1,000.00		1,016.44		8.77
Inverse Russell 2000® Strategy Fund		1.72	%			1,000.00		1,016.49		8.72
Government Long Bond 1.2x Strategy Fund		1.25	%			1,000.00		1,018.85		6.34
Inverse Government Long Bond Strategy Fund		2.68	%			1,000.00		1,011.66		13.55
Europe 1.25x Strategy Fund		1.70	%			1,000.00		1,016.59		8.62
Japan 1.25x Strategy Fund		1.69	%			1,000.00		1,016.64		8.57
Dow 2x Strategy Fund		1.72	%			1,000.00		1,016.49		8.72
Inverse Dow 2x Strategy Fund		1.73	%			1,000.00		1,016.44		8.77
Small-Cap Value Fund		1.56	%			1,000.00		1,017.29		7.91
Mid-Cap Value Fund		1.56	%			1,000.00		1,017.29		7.91
Large-Cap Value Fund		1.57	%			1,000.00		1,017.24		7.96
Small-Cap Growth Fund		1.55	%			1,000.00		1,017.34		7.86
Mid-Cap Growth Fund		1.55	%			1,000.00		1,017.34		7.86
Large-Cap Growth Fund		1.56	%			1,000.00		1,017.29		7.91
U.S. Government Money Market Fund		1.26	%			1,000.00		1,018.80		6.39

*	Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies.
†	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 0.98% lower.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    5

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)

NOVA FUND

OBJECTIVE: Seeks to provide investment returns that correspond to 150% of the daily performance of the S&P 500 Index.

Inception: May 7, 1997

The S&P 500 Index was down 37.00% in 2008, the worst year since Standard and Poor’s began publishing the index in 1957. The year began with continued concerns over the subprime mortgage crisis and weakening housing market as Bear Stearns collapsed and the Federal Reserve helped orchestrate a takeover of the industry giant by JPMorgan Chase & Co. in March. Fears of a recession increased throughout the year as a highly chaotic atmosphere that came to characterize U.S. equity markets took hold. Stock markets started to freefall after Lehman Brothers Holdings, Inc. filed for bankruptcy on September 15. One-month LIBOR rates spiked to 4.5875% as banks required a higher premium for taking on credit risk from other banks. Volatility also spiked as the VIX increased to a high of 80.86%.

To help calm financial markets, the U.S. government rescued the Federal National Mortgage Association known as Fannie Mae, the Federal Home Loan Mortgage Corp. known as Freddie Mac and American International Group (“AIG”), and released an infusion of cash in the hopes of firming up the balance sheets of major U.S. banking institutions. Then, on October 8, many governments announced massive spending plans in a coordinated effort to help boost global economic activity. These actions appeared to stabilize the financial markets for a short time as the S&P 500 Index ended the year at 903.25—up from its low of 752.44 on November 20. LIBOR rates have also fallen to less than half a percent and VIX decreased to 40% by year end.

Cumulative Fund Performance:
December 31, 1998 – December 31, 2008

As expected, no sector provided positive returns for the year. While investors sought growth, they also sought to shield themselves from the now global collapse of the nation’s housing market. Consumer staples, health care and utilities remained defensive during the year. Battered financials, materials and technology were the worst-performing sectors.

Rydex Nova Fund returned -54.47% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P 500 Index.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Ten
	Year			Year			Year
NOVA FUND		-54.47	%		-8.13	%		-7.89	%
S&P 500 INDEX		-37.00	%		-2.19	%		-1.38	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index 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.	3.7	%
Procter & Gamble Co.	1.7	%
General Electric Co.	1.6	%
AT&T, Inc.	1.5	%
Johnson & Johnson, Inc.	1.5	%
Chevron Corp.	1.4	%
Microsoft Corp.	1.4	%
Wal-Mart Stores, Inc.	1.1	%
Wells Fargo & Co.	1.1	%
Pfizer, Inc.	1.1	%
Top Ten Total	16.1	%

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

6    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

INVERSE S&P 500 STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correlate to daily performance of the S&P 500 Index.

Inception: June 9, 1997

The S&P 500 Index was down 37.00% in 2008, the worst year since Standard and Poor’s began publishing the index in 1957. The year began with continued concerns over the subprime mortgage crisis and weakening housing market. Bear Stearns collapsed in March and the Federal Reserve helped orchestrate a takeover of Bear Stearns by JPMorgan Chase & Co. Fears of a recession increased throughout the year. Stock markets started to freefall after Lehman Brothers Holdings, Inc. bankruptcy on September 15. One-month LIBOR rates spiked to 4.5875% as banks required a higher premium for taking on credit risk from other banks. Volatility also spiked as the VIX increased to a high of 80.86%.

To help calm financial markets the U.S. government rescued the Federal National Mortgage Association known as Fannie Mae, the Federal Home Loan Mortgage Corp. known as Freddie Mac and American International Group (“AIG”), as well as firming up the balance sheets of major U.S. banks. Many central banks around the globe coordinated interest rate cuts. Then, on October 8, many governments announced massive spending plans to help boost global economic activity. These actions appear to be stabilizing the financial markets as the S&P 500 Index ended the year at 903.25, up from its low of 752.44 on November 20. LIBOR rates have also fallen to less than half a percent and VIX decreased to 40% by year end.

Cumulative Fund Performance:
December 31, 1998 – December 31, 2008

As expected, no sector provided positive returns for the year. Consumer staples, health care and utilities remained defensive and were the best-performing sectors for 2008. Battered financials, materials and technology were the worst-performing sectors.

Rydex Inverse S&P 500 Strategy Fund returned 39.25% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. The Fund achieved a daily correlation of more than 99% to its benchmark of -100% of the daily price movement of the S&P 500 Index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Ten
	Year			Year			Year
INVERSE S&P 500 STRATEGY FUND		39.25	%		2.96	%		1.99	%
S&P 500 INDEX		-37.00	%		-2.19	%		-1.38	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index 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 VARIABLE TRUST ANNUAL REPORT    |    7

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

NASDAQ-100^® FUND

OBJECTIVE: Seeks to provide investment results that correspond to the performance of the NASDAQ-100 Index^® on a daily basis.

Inception: May 7, 1997

The NASDAQ-100 Index was down 41.49% in 2008. As expected, technology stocks were hit hard by decreased economic activity as well as forecasts of weaker consumer demand. The financial crisis impacted global economies and even stocks with a large proportion of foreign revenues suffered from weaker demand overseas. Many stocks have correspondingly lowered their revenue and earnings guidance for upcoming quarters.

Technology companies have responded to weaker economic growth by reducing spending on research and development and restructuring (or modifying) business plans to help increase profitability. Apple Inc. held the largest weight in the index throughout the year with the NASDAQ-100 Index’s modified cap weighting methodology. The large weighting combined with Apple, Inc.’s -56.91% return weighed heavily on the index’s negative performance for the year.

Cumulative Fund Performance:
December 31, 1998 – December 31, 2008

Rydex NASDAQ-100^® Fund returned - -41.91% for the year. The Fund achieved a daily correlation over 99% to its benchmark of 100% of the daily price movement of the NASDAQ-100 Index.

* 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 12/31/08

	One			Five			Ten
	Year			Year			Year
NASDAQ-100® FUND		-41.91	%		-4.36	%		-5.40	%
NASDAQ-100 INDEX		-41.49	%		-3.34	%		-3.81	%

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.	8.5	%
Qualcomm, Inc.	5.7	%
Microsoft Corp.	4.8	%
Gilead Sciences, Inc.	3.7	%
Google, Inc. — Class A	3.6	%
Oracle Corp.	3.1	%
Cisco Systems, Inc.	2.7	%
Intel Corp.	2.3	%
Amgen, Inc.	2.3	%
Teva Pharmaceutical Industries Ltd. — SP ADR	2.2	%
Top Ten Total	38.9	%

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

8    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correlates to the daily performance of the NASDAQ-100 Index.

Inception: May 21, 2001

The NASDAQ-100 Index was down 41.49% in 2008. As expected, technology stocks were hit hard by decreased economic activity as well as forecasts of weaker consumer demand. The financial crisis impacted global economies and even stocks with a large proportion of foreign revenues suffered from weaker demand overseas. Many stocks have correspondingly lowered their revenue and earnings guidance for upcoming quarters.

Technology companies have responded to weaker economic growth by reducing spending on research and development and restructuring (or modifying) business plans to help increase profitability.

Apple Inc. held the largest weight in the index throughout the year with the NASDAQ-100 Index’s modified cap weighting methodology. The large weighting combined with Apple, Inc.’s -56.91% return weighed heavily on the index’s negative performance for the year.

Cumulative Fund Performance:
May 21, 2001 – December 31, 2008

Rydex Inverse NASDAQ-100^® Strategy Fund returned 47.96% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of -100% of the daily price movement of the NASDAQ-100 Index.

* 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 12/31/08

	One			Five			Since Inception
	Year			Year			(05/21/01)
INVERSE NASDAQ -100® STRATEGY FUND		47.96	%		2.94	%		1.77	%
NASDAQ-100 INDEX		-41.49	%		-3.34	%		-3.81	%

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, futures contracts, and options on index futures.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    9

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

S&P 500 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond to 200% of the daily performance of the S&P 500 Index.

Inception: October 1, 2001

The S&P 500 Index was down 37.00% in 2008, the worst year since Standard and Poor’s began publishing the index in 1957. The year began with continued concerns over the subprime mortgage crisis and weakening housing market as Bear Stearns collapsed and the Federal Reserve helped orchestrate a takeover of the industry giant by JPMorgan Chase & Co. in March. Fears of a recession increased throughout the year as a highly chaotic atmosphere that came to characterize U.S. equity markets took hold. Stock markets started to freefall after Lehman Brothers Holdings, Inc. filed for bankruptcy on September 15. One-month LIBOR rates spiked to 4.5875% as banks required a higher premium for taking on credit risk from other banks. Volatility also spiked as the VIX increased to a high of 80.86%.

To help calm financial markets, the U.S. government rescued Fannie Mae, Freddie Mac and AIG and released an infusion of cash in the hopes of firming up the balance sheets of major U.S. banking institutions. Then, on October 8, many governments announced massive spending plans in a coordinated effort to help boost global economic activity. These actions appeared to stabilize the financial markets for a short time as the S&P 500 Index ended the year at 903.25—up from its low of 752.44 on November 20. LIBOR rates have also fallen to less than half a percent and VIX decreased to 40% by year end.

Cumulative Fund Performance:
October 1, 2001 – December 31, 2008

As expected, no sector provided positive returns for the year. Consumer staples, health care and utilities remained defensive and were the best-performing sectors for 2008. Battered financials, materials and technology were the worst-performing sectors.

For the year, Rydex S&P 500 2x Strategy Fund returned -67.98%. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the S&P 500 Index.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Since Inception
	Year			Year			(10/01/01)
S&P 500 2x STRATEGY FUND		-67.98	%		-13.60	%		-9.59	%
S&P 500 INDEX		-37.00	%		-2.19	%		-0.06	%

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.	3.2	%
Procter & Gamble Co.	1.4	%
General Electric Co.	1.3	%
AT&T, Inc.	1.3	%
Johnson & Johnson, Inc.	1.3	%
Chevron Corp.	1.2	%
Microsoft Corp.	1.2	%
Wal-Mart Stores, Inc.	1.0	%
Wells Fargo & Co.	1.0	%
Pfizer, Inc.	0.9	%
Top Ten Total	13.8	%

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

10    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

NASDAQ-100^® 2x STRATEGY FUND

OBJECTIVE: To provide investment results that will 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.

Inception: October 1, 2001

The NASDAQ-100 Index was down 41.49% in 2008. As expected, technology stocks were hit hard by decreased economic activity as well as forecasts of weaker consumer demand. The financial crisis impacted global economies and even stocks with a large proportion of foreign revenues suffered from weaker demand overseas. Many stocks have correspondingly lowered their revenue and earnings guidance for upcoming quarters.

Technology companies have responded to weaker economic growth by reducing spending on research and development and restructuring (or modifying) business plans to help increase profitability. Apple Inc. held the largest weight in the index throughout the year with the NASDAQ-100 Index’s modified cap weighting methodology. The large weighting combined with Apple, Inc.’s -56.91% return weighed heavily on the index’s negative performance for the year.

Cumulative Fund Performance:
October 1, 2001 – December 31, 2008

Rydex NASDAQ-100^® 2x Strategy Fund returned -72.60% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the NASDAQ-100 Index.

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 3 of this report.

* 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 12/31/08

	One			Five			Since Inception
	Year			Year			(10/01/01)
NASDAQ-100® 2x STRATEGY FUND		-72.60	%		-16.42	%		-12.31	%
NASDAQ-100 INDEX		-41.49	%		-3.34	%		1.06	%

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.	7.5	%
Qualcomm, Inc.	5.1	%
Microsoft Corp.	4.2	%
Gilead Sciences, Inc.	3.3	%
Google, Inc. — Class A	3.2	%
Oracle Corp.	2.7	%
Cisco Systems, Inc.	2.4	%
Intel Corp.	2.0	%
Amgen, Inc.	2.0	%
Teva Pharmaceutical Industries Ltd. — SP ADR	1.9	%
Top Ten Total	34.3	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    11

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

MID-CAP 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate to that performance of the S&P MidCap 400™ Index. The Fund will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of its daily benchmark.

Inception: October 1, 2001

The S&P MidCap 400 Index was down 36.23% in 2008 and was in-line with the performance of the large-cap S&P 500 Index, which was down 37.00% for the year. The weaker housing market and unfolding financial crisis hurt mid-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.

The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and T-bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to rescue troubled firms culminated in large fiscal spending plans and coordinated interest rates cuts that helped calm financial markets by year-end.

Cumulative Fund Performance:
October 1, 2001 – December 31, 2008

Rydex Mid-Cap 1.5x Strategy Fund returned - -54.83% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 150% of the daily price movement of the S&P MidCap 400 Index.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Since Inception
	Year			Year			(10/01/01)
MID-CAP 1.5x STRATEGY FUND		-54.83	%		-6.36	%		0.68	%
S&P MIDCAP 400 INDEX		-36.23	%		-0.08	%		4.62	%

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)
Everest Re Group Ltd.	0.4	%
Vertex Pharmaceuticals, Inc.	0.4	%
Health Care REIT, Inc.	0.3	%
W.R. Berkley Corp.	0.3	%
O’Reilly Automotive, Inc.	0.3	%
New York Community Bancorp, Inc.	0.3	%
Martin Marietta Materials, Inc.	0.3	%
MDU Resources Group, Inc.	0.3	%
SAIC, Inc.	0.3	%
Church & Dwight Co., Inc.	0.3	%
Top Ten Total	3.2	%

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

12    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correspond to the daily performance of the S&P MidCap 400™ Index.

Inception: May 3, 2004

The S&P MidCap 400 Index was down 36.23% in 2008 and was in-line with the performance of the large-cap S&P 500 Index, which was down 37.00% for the year. The weaker housing market and unfolding financial crisis hurt mid-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.

The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and T-bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to rescue troubled firms culminated in large fiscal spending plans and coordinated interest rates cuts that helped calm financial markets by year-end.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

Rydex Inverse Mid-Cap Strategy Fund returned 34.42% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of -100% of the daily price movement of the S&P MidCap 400 Index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
INVERSE MID-CAP STRATEGY FUND		34.42	%		0.53	%
S&P MIDCAP 400 INDEX		-36.23	%		-0.63	%

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 VARIABLE TRUST ANNUAL REPORT    |    13

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

RUSSELL 2000^® 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment returns that correspond to 200% of the daily performance of the Russell 2000^® Index.

Inception: October 27, 2006

The Russell 2000 Index was down 33.79% in 2008. The weaker housing market and unfolding financial crisis hurt small-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.

The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and treasury bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to assist, and even rescue, troubled firms, announce large fiscal spending plans and coordinated interest rate cuts had helped calm financial markets by year-end.

Even with a flight to less risky assets, the Russell 2000 Index outperformed the large-cap S&P 500 Index, which was down 37.00% for the year. The main reason for the outperformance was that smaller-cap financial stocks outperformed larger-cap financial stocks even though financial stocks comprise a larger weight in the Russell 2000 Index than in the S&P 500 Index.

Cumulative Fund Performance:
October 27, 2006 – December 31, 2008

Rydex Russell 2000^® 2x Strategy Fund returned -66.18% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the Russell 2000 Index.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(10/27/06)
RUSSELL 2000® 2x STRATEGY FUND		-66.18	%		-41.80	%
RUSSELL 2000 INDEX		-33.79	%		-16.68	%

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)
Ralcorp Holdings, Inc.	0.2	%
Myriad Genetics, Inc.	0.2	%
Alexion Pharmaceuticals, Inc.	0.2	%
Waste Connections, Inc.	0.2	%
Realty Income Corp.	0.1	%
Piedmont Natural Gas Co.	0.1	%
ITC Holdings Corp.	0.1	%
Comstock Resources, Inc.	0.1	%
OSI Pharmaceuticals, Inc.	0.1	%
Westar Energy, Inc.	0.1	%
Top Ten Total	1.4	%

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

14    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

RUSSELL 2000^® 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment returns that correlate to the performance of the Russell 2000 Index. The Fund will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of the benchmark.

Inception: October 1, 2001

The Russell 2000 Index was down 33.79% in 2008. The weaker housing market and unfolding financial crisis hurt small-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.

The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and treasury bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to assist, and even rescue, troubled firms, announce large fiscal spending plans and coordinated interest rates cuts had helped calm financial markets by year end.

Even with a flight to less risky assets, the Russell 2000 Index outperformed the large-cap S&P 500 Index, which was down 37.00% for the year. The main reason for the outperformance was that smaller-cap financial stocks outperformed larger-cap financial stocks even though financial stocks comprise a larger weight in the Russell 2000 Index than in the S&P 500 Index.

Cumulative Fund Performance:
October 1, 2001 – December 31, 2008

Rydex Russell 2000 ^® 1.5x Strategy Fund returned -51.36% for the year. It achieved a daily correlation of more than 99% to its benchmark of 150% of the daily price movement of the Russell 2000 Index.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Since Inception
	Year			Year			(10/01/01)
RUSSELL 2000 ® 1.5x STRATEGY FUND		-51.36	%		-6.54	%		-0.34	%
RUSSELL 2000 INDEX		-33.79	%		-0.93	%		4.52	%

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 12 % of Net Assets)

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

Ten Largest Holdings (% of Total Net Assets)
Ralcorp Holdings, Inc.	0.3	%
Myriad Genetics, Inc.	0.3	%
Alexion Pharmaceuticals, Inc.	0.2	%
Waste Connections, Inc.	0.2	%
Realty Income Corp.	0.2	%
Piedmont Natural Gas Co.	0.2	%
OSI Pharmaceuticals, Inc.	0.2	%
ITC Holdings Corp.	0.2	%
Comstock Resources, Inc.	0.2	%
Westar Energy, Inc.	0.2	%
Top Ten Total	2.2	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    15

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correspond to daily performance of the Russell 2000 Index.

Inception: May 3, 2004

The Russell 2000 Index was down 33.79% in 2008. The weaker housing market and unfolding financial crisis hurt small-cap companies throughout the year. Increasing fears of a recession were confirmed as the National Bureau of Economic Research announced late in 2008 that U.S. economic activity reached a peak in December 2007.

The bankruptcy of Lehman Brothers Holdings, Inc. in September caused a flight away from risk stocks into the safety of government bonds and treasury bills and both investment grade and high yield corporate debt yields to rise dramatically. The actions of the governments and central banks around the world to assist, and even rescue, troubled firms, announce large fiscal spending plans and coordinated interest rates cuts had helped calm financial markets by year end.

Even with a flight to less risky assets, the Russell 2000 ^®Index outperformed the large-cap S&P 500 Index, which was down 37.00% for the year. The main reason for the outperformance was that smaller-cap financial stocks outperformed larger-cap

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

financial stocks even though financial stocks comprise a larger weight in the Russell 2000 Index than in the S&P 500 Index.

Rydex Inverse Russell 2000 ^® Strategy Fund returned 24.69% for the year. The SEC’s three-week ban on shorting stocks in fall 2008 had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of - -100% of the daily price movement of the Russell 2000 Index.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
INVERSE RUSSELL 2000 ® STRATEGY FUND		24.69	%		-0.86	%
RUSSELL 2000 INDEX		-33.79	%		-1.39	%

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, futures contracts, and options on index futures.

16    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: To provide investment results that corresponds 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.

Inception: August 8, 1997

During the first quarter of 2008, volatility prevailed at the long end of the Treasury curve, as the market reacted alternately to the Federal Reserve’s remedial response to subprime issues and the overriding fear of recession. On April 30, the Fed lowered its target rate to 2.00%, following three previous rate cuts that began on January 22 at 4.25%.

During April through mid-September, investors awaited the outcome of lower Fed Funds rates and the unconventional means utilized by the Treasury and the Federal Reserve to end the crisis brought on by subprime mortgage write-downs and home foreclosures. The Federal Open Market Committee (“FOMC”) meetings through the second and third quarters introduced the Fed’s concern regarding the risk of inflation. The Long Bond yield, although volatile, remained within a narrow trading range and averaged 4.53% for the period.

In September and October, the U.S. placed the government-sponsored agencies (“GSEs”) into conservatorship and saved AIG. Lehman Brothers filed Chapter 11, Bank of America acquired Merrill Lynch and the auto industry was in need of a bailout. These and other unprecedented events led to increasing investor fear and uncertainty.

Cumulative Fund Performance:
December 31, 1998 – December 31, 2008

In November, investors fled to the safety of Treasuries. The 30-year bond yield reached historical lows and closed out the year at 2.68%.

The Government Long Bond 1.2x Strategy Fund benefits from a falling interest rate environment. Since, the 30-year bond yield was, on average, lower, the Fund adhered to its objective and closed up 44.87%.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Ten
	Year			Year			Year
GOVERNMENT LONG BOND 1.2x STRATEGY FUND		44.87	%		12.46	%		7.33	%
PRICE MOVEMENT OF LONG TREASURY BOND		26.53	%		5.73	%		2.19	%
BARCLAYS CAPITAL LONG TREASURY BOND INDEX		24.03	%		9.73	%		8.10	%

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 and options contracts.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    17

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: To provide total returns that will inversely correlate to the price movements of a benchmark for U.S. Treasury debt instruments or futures contracts on a specified debt instrument. The Fund’s current benchmark is the inverse 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.

Inception: May 1, 2003

During the first quarter of 2008, the Federal Reserve continued its response to the subprime mortgage crisis adding volatility to the 30-year bond.

The Fed dropped the central bank’s target rate to 2.00% on April 30 from 4.25% in January, pushing short-term rates lower. Since the FOMC meetings during the second and third quarters indicated a risk of inflation, the Long Bond maintained an average yield of 4.53% for the period.

The Treasury and the Federal Reserve brought forth tools to save the GSE’s, investment and commercial banks, insurance companies and others in an unparalleled effort to keep the economy moving.

Cumulative Fund Performance:
May 1, 2003 – December 31, 2008

In November, with little sign of a near-term recovery, fear and uncertainty impacted the Treasury market resulting in a flight to quality that took long Treasuries to historic lows and the 30-year bond to 2.68% by year-end.

Since the 30-year bond yield was, on average, lower over the period, the Fund closed down 30.21%.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Since Inception
	Year			Year			(05/01/03)
INVERSE GOVERNMENT LONG BOND STRATEGY FUND		-30.21	%		-9.42	%		-8.47	%
PRICE MOVEMENT OF LONG TREASURY BOND		26.53	%		5.73	%		4.20	%
BARCLAYS CAPITAL LONG TREASURY BOND INDEX		24.03	%		9.73	%		8.55	%

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.

18    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: Seeks to provide investment returns that correlate to the performance of the Dow Jones STOXX^® 50 Index. The Fund will attempt to consistently apply leverage to increase the Fund’s exposure to 125% of its benchmark.

Inception: October 1, 2001

International markets were not immune to the financial crisis, which spread from the U.S. Continued concerns about a weakening global economy weighed heavily on stocks around the world. The Dow Jones STOXX 50 Index was down 43.65% for the year as European stocks underperformed U.S. stocks. Weakening European currencies detracted from the index’s overall performance in terms of U.S. dollars. Rydex Europe 1.25x Strategy Fund returned -54.86% for the year. It achieved a daily correlation of more than 97% to its benchmark of 125% of the daily price movement of the Dow Jones STOXX 50 Index.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent

Cumulative Fund Performance:
October 1, 2001 – December 31, 2008

discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Since Inception
	Year			Year			(10/01/01)
EUROPE 1.25x STRATEGY FUND		-54.86	%		-3.97	%		-0.88	%
DOW JONES STOXX 50 INDEX		-43.65	%		0.26	%		2.58	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Dow Jones 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 — SP ADR	5.5	%
BP PLC — SP ADR	4.6	%
GlaxoSmithKline PLC — SP ADR	4.6	%
Telefonica SA — SP ADR	4.2	%
Total SA — SP ADR	4.1	%
Vodafone Group PLC — SP ADR	3.8	%
France Telecom SA — SP ADR	3.6	%
Sanofi-Aventis — SP ADR	3.6	%
Royal Dutch Shell PLC — SP ADR	3.2	%
HSBC Holdings PLC — SP ADR	2.8	%
Top Ten Total	40.0	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    19

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

JAPAN 1.25x STRATEGY FUND

OBJECTIVE: The Japan 1.25x Strategy Fund 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 Topix 100 Index.

Inception: October 1, 2001

International markets were not immune to the financial crisis, which spread from the U.S. in 2008. Continued concerns about a weakening global economy weighed heavily on stocks around the world.

Japanese stocks outperformed U.S. stocks as the S&P 500 was down 37.00%. The strengthening Japanese Yen added to the overall Index’s performance in terms of U.S. dollars. As a result, the Rydex Japan 1.25x Strategy Fund returned - -32.97% for the year. The Fund achieved a daily correlation of more than 91% to its benchmark.

The effects of compounding may cause the longer-term correlation of the Fund to its benchmark to diminish. The apparent dis-

Cumulative Fund Performance:
October 1, 2001 – December 31, 2008

crepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Since Inception
	Year			Year			(10/01/01)
JAPAN 1.25x STRATEGY FUND		-32.97	%		-3.64	%		-2.38	%
TOPIX 100 INDEX		-30.06	%		-0.62	%		0.56	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Topix 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, futures contracts, and options on index futures.

20    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

DOW 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond to 200% of the daily performance of the Dow Jones Industrial AverageSM Index.

Inception: May 3, 2004

The Dow Jones Industrial Average Index (“DJIA”) was down a historic 31.93% in 2008. The year began with continued concerns over the subprime mortgage crisis and weakening housing market. Stock markets started to freefall after Lehman Brothers Holding’s Inc. bankruptcy on September 15. Inter-bank lending rates and volatility spiked and investors fled risky assets such as stocks to more conservative investments such as government bonds and bills.

Fears of a global recession increased throughout the year, culminating with the U.S. government attempting to calm global financial markets by rescuing Fannie Mae, Freddie Mac and AIG, while also shoring up the balance sheets of major U.S. banks. This unprecedented action helped to lower lending rates and volatility by the close of 2008.

Two stocks that seemed to weather the 2008 crisis were McDonald’s Corp. and Wal-Mart Stores, Inc., while AIG, Boeing Co. and American Express contributed the most to the DJIA’s negative performance for the year.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

Rydex Dow 2x Strategy Fund returned -61.71% for the year. The Fund achieved a daily correlation of more than 99% to its benchmark of 200% of the daily price movement of the Dow Jones Industrial Average.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
DOW 2x STRATEGY FUND		-61.71	%		-11.53	%
DOW JONES INDUSTRIAL AVERAGE INDEX		-31.93	%		-1.05	%

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.	4.5	%
Exxon Mobil Corp.	4.3	%
Chevron Corp.	4.0	%
McDonald’s Corp.	3.3	%
Procter & Gamble Co.	3.3	%
Johnson & Johnson, Inc.	3.2	%
3M Co.	3.1	%
Wal-Mart Stores, Inc.	3.0	%
United Technologies Corp.	2.9	%
Coca-Cola Co.	2.4	%
Top Ten Total	34.0	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    21

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)

INVERSE DOW 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correspond to 200% of the daily performance of the Dow Jones Industrial Average Index.

Inception: May 3, 2004

The DJIA was down a historic 31.93% in 2008. The year began with continued concerns over the subprime mortgage crisis and weakening housing market. Stock markets started to freefall after Lehman Brothers Holding’s Inc. bankruptcy on September 15. Inter-bank lending rates and volatility spiked and investors fled risky assets such as stocks to more conservative investments such as government bonds and bills.

Fears of a global recession increased throughout the year culminating with the U.S. government attempting to calm global financial markets by rescuing Fannie Mae, Freddie Mac and AIG, while also shoring up the balance sheets of major U.S. banks. This unprecedented action helped to lower lending rates and volatility by the close of 2008.

Two stocks that seemed to weather the 2008 crisis were McDonald’s Corp. and Wal-Mart Stores, Inc., while AIG, Boeing Co. and American Express contributed the most to the DJIA’s negative performance for the year.

Rydex Inverse Dow 2x Strategy Fund returned 60.84% for the year. The SEC’s three-week ban on shorting stocks in fall 2008

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

had no impact on the Fund’s ability to get short exposure to the broad index. It achieved a daily correlation of more than 99% to its benchmark of -200% of the daily price movement of the Dow Jones Industrial Average.

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 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
INVERSE DOW 2x STRATEGY FUND		60.84	%		0.64	%
DOW JONES INDUSTRIAL AVERAGE INDEX		-31.93	%		-1.05	%

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, futures contracts, and options on index futures.

22    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

SMALL-CAP VALUE FUND

OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P SmallCap 600/Citigroup Pure Value Index.

Inception: May 3, 2004

The S&P SmallCap 600/Citigroup Pure Value Index was down 41.73% for the year. Across all pure style boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Larger-cap stocks were hurt more than smaller-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.

The utilities sector was the only one that contributed positive returns for the year. The worst-performing sectors were technology and energy. Rydex Small-Cap Value Fund returned - -43.50% for the year.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
SMALL-CAP VALUE FUND		-43.50	%		-8.64	%
S&P SMALLCAP 600/CITIGROUP PURE VALUE INDEX		-41.73	%		-5.20	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P SmallCap 600/Citigroup Pure Value 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)
BankAtlantic Bancorp, Inc. — Class A	2.0	%
Brunswick Corp.	2.0	%
Standard Motor Products, Inc.	2.0	%
OfficeMax Inc.	1.9	%
Sonic Automotive, Inc.	1.8	%
Lithia Motors, Inc. — Class A	1.8	%
Insight Enterprises, Inc.	1.7	%
AH Belo Corp. — Class A	1.7	%
Guaranty Financial Group, Inc.	1.6	%
Oxford Industries, Inc.	1.6	%
Top Ten Total	18.1	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    23

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

MID-CAP VALUE FUND

OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P MidCap 400/Citigroup Pure Value Index.

Inception: May 3, 2004

The S&P Midcap 400/Citigroup Pure Value Index was down 42.59% for the year. Across all pure style boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Larger-cap stocks were hurt more than smaller-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.

Energy was the only sector that contributed positive returns for the year. The worst-performing sectors were consumer discretionary and materials. Rydex Mid-Cap Value Fund returned -43.63% for the year.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
MID-CAP VALUE FUND		-43.63	%		-5.09	%
S&P MIDCAP 400/CITIGROUP PURE VALUE INDEX		-42.59	%		-3.16	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400/Citigroup 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)
ArvinMeritor, Inc.	2.8	%
Temple-Inland, Inc.	2.7	%
Colonial BancGroup, Inc.	2.6	%
Oshkosh Corp.	2.6	%
Modine Manufacturing Co.	2.2	%
Ashland, Inc.	2.2	%
Protective Life Corp.	2.1	%
Furniture Brands International, Inc.	2.0	%
Belo Corp. — Class A	1.8	%
Kelly Services, Inc. — Class A	1.8	%
Top Ten Total	22.8	%

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

24    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

LARGE-CAP VALUE FUND

OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P 500/Citigroup Pure Value Index.

Inception: May 3, 2004

The S&P 500/Citigroup Pure Value Index was down 47.88% for the year. Across all pure style boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Large-cap stocks were hurt more than small-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.

There were no specific sectors that provided positive returns for the year. The best-performing sectors were utilities and energy. The worst-performing sectors were financials and technology. Rydex Large-Cap Value Fund returned - -48.65% for the year.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
LARGE-CAP VALUE FUND		-48.65	%		-8.23	%
S&P 500/CITIGROUP PURE VALUE INDEX		-47.88	%		-3.97	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500/Citigroup 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)
ProLogis	3.5	%
SUPERVALU, INC.	2.3	%
CIT Group, Inc.	2.3	%
Hartford Financial Services Group, Inc.	2.3	%
XL Capital Ltd.	2.2	%
Tesoro Corp.	2.1	%
American Capital Ltd.	2.0	%
Office Depot, Inc.	2.0	%
American International Group, Inc.	2.0	%
Genworth Financial, Inc. — Class A	1.8	%
Top Ten Total	22.5	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    25

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

SMALL-CAP GROWTH FUND

OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P SmallCap 600/CitiGroup Pure Growth Index.

Inception: May 3, 2004

The S&P SmallCap 600/Citigroup Pure Growth Index was down 33.11% for the year. Across all pure boxes small-cap stocks tended to outperform large-cap stocks and growth stocks tended to outperform value stocks. Large-cap stocks were hurt more than small-caps over the past year as the global economy slipped into a recession. Growth stocks beat out value stocks in 2008 as investors placed a premium on growth in a slowing economic environment.

The best-performing sectors for 2008 were industrials and financials. The worst-performing sectors remained energy and consumer staples. Rydex Small-Cap Growth Fund returned -34.32% for the year.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
SMALL-CAP GROWTH FUND		-34.32	%		-2.96	%
S&P SMALLCAP 600/CITIGROUP PURE GROWTH INDEX		-33.11	%		-0.79	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P SmallCap 600/Citigroup 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)
Palomar Medical Technologies, Inc.	1.3	%
TradeStation Group, Inc.	1.2	%
Viropharma, Inc.	1.2	%
NutriSystem, Inc.	1.2	%
Stamps.com, Inc.	1.2	%
True Religion Apparel, Inc.	1.2	%
Cubist Pharmaceuticals, Inc.	1.2	%
Basic Energy Services, Inc.	1.1	%
Intevac, Inc.	1.1	%
LCA-Vision, Inc.	1.1	%
Top Ten Total	11.8	%

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

26    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

MID-CAP GROWTH FUND

OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P MidCap 400/Citigroup Pure Growth Index.

Inception: May 3, 2004

The S&P MidCap 400/Citigroup Pure Growth Index was down 35.17% for the year. Across all boxes smaller-cap stocks tended to outperform larger-cap stocks and growth stocks tended to outperform value stocks. Larger-cap stocks were hurt more than smaller-cap stocks over the past year as the global economy slipped into a recession. Growth stocks beat value stocks over the past year as investors placed a premium on growth in a slowing economic environment.

No sectors provided positive returns for the year. The best-performing sectors were financials and consumer discretionary. The worst-performing sectors were materials and energy. Rydex Mid-Cap Growth Fund returned -36.12% for the year.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
MID-CAP GROWTH FUND		-36.12	%		-3.09	%
S&P MIDCAP 400/CITIGROUP PURE GROWTH INDEX		-35.17	%		-0.82	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P MidCap 400/Citigroup 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)
Sepracor, Inc.	1.8	%
Sotheby’s	1.8	%
United Therapeutics Corp.	1.8	%
Hansen Natural Corp.	1.8	%
J. Crew Group, Inc.	1.7	%
CommScope, Inc.	1.6	%
Cliffs Natural Resources, Inc.	1.5	%
Lam Research Corp.	1.5	%
Joy Global, Inc.	1.5	%
Energizer Holdings, Inc.	1.4	%
Top Ten Total	16.4	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    27

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

LARGE-CAP GROWTH FUND

OBJECTIVE: Seeks to provide investment results that correspond to the daily performance of the S&P 500/Citigroup Pure Growth Index.

Inception: May 3, 2004

The S&P 500/Citigroup Pure Growth Index was down 38.99% for the year. Across all pure style boxes, small-cap stocks tended to outperform their large-cap counterparts and growth stocks tended to outperform value stocks. Large-cap stocks were hurt more than small-caps over the past year, as the global economy slipped into a recession. That being said, growth stocks beat out value stocks in 2008 as investors placed a premium on growth strategies in a slowing economic environment.

Understandably, no sectors provided positive returns for the year. The best-performing sectors were consumer staples and health care. The worst performing were utilities and financials.

Rydex Large-Cap Growth Fund returned -39.80% for the year.

Cumulative Fund Performance:
May 3, 2004 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Since Inception
	Year			(05/03/04)
LARGE-CAP GROWTH FUND		-39.80	%		-7.19	%
S&P500/CITIGROUP PURE GROWTH INDEX		-38.99	%		-3.83	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500/Citigroup 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)
Celgene Corp.	1.5	%
Intuitive Surgical, Inc.	1.5	%
Titanium Metals Corp.	1.5	%
Sunoco, Inc.	1.4	%
IntercontinentalExchange, Inc.	1.4	%
Sears Holdings Corp.	1.3	%
Nucor Corp.	1.3	%
NYSE Euronext	1.3	%
Agilent Technologies, Inc.	1.3	%
Freeport-McMoRan Copper & Gold, Inc.	1.2	%
Top Ten Total	13.7	%

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

28    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: The U.S. Government Money Market Fund seeks to provide security of principal, high current income, and liquidity.

Inception: May 7, 1997

As subprime mortgage delinquencies and mortgage foreclosures increased and profits at mortgage banks continued to fall, a credit crisis unfolded in 2008. The U.S. Treasury and the Federal Reserve brought forth unconventional tools to support the financial markets and stimulate consumer spending and economic growth.

Throughout the year, it was difficult to fathom the demise of Lehman Brothers Holdings, Inc., the Government’s decision to rescue banks, insurers and auto companies, the conservatorship of Fannie Mae and Freddie Mac, the issuance of money market fund protective insurance and even negative yields for the 3-month T-Bill.

The Federal Reserve stepped up its easing operations through eight scheduled and two interim meetings. By December 16, the central bank had pushed its target rate down to a range of 0.25% from 4.25% to encourage bank lending and consumer borrowing.

As a result, money market rates dropped to the lowest in history, forcing some funds to close to new investors.

The Rydex U.S. Government Money Market Fund holds GSEs and repurchase agreements (Repos), collateralized by U.S Treasuries.

For 2008, the Rydex U.S. Government Money Market Fund returned 1.14%

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	One			Five			Ten
	Year			Year			Year
U.S. GOVERNMENT MONEY MARKET FUND		1.14	%		2.21	%		2.33	%

Holdings Diversification (Market Exposure as % of Net Assets)

FAB — Federal Agency Bonds

FADN — Federal Agency Discount Notes

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.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    29

SCHEDULE OF INVESTMENTS

December 31, 2008

     NOVA FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 71.8%
INFORMATION TECHNOLOGY 11.0%
Microsoft Corp.		24,490	$	476,086
International Business Machines Corp.		4,300		361,888
Cisco Systems, Inc.*		18,740		305,462
Hewlett-Packard Co.		7,833		284,260
Intel Corp.		17,800		260,948
Apple, Inc.*		2,849		243,162
Google, Inc. — Class A*		765		235,352
Oracle Corp.*		12,546		222,441
Qualcomm, Inc.		5,303		190,006
EMC Corp*		6,540		68,474
Texas Instruments, Inc.		4,150		64,408
Automatic Data Processing, Inc.		1,630		64,124
Dell, Inc.*		5,539		56,719
Yahoo!, Inc.*		4,440		54,168
eBay, Inc.*		3,440		48,022
Corning, Inc.		4,980		47,459
Applied Materials, Inc.		4,302		43,579
Symantec Corp.*		2,679		36,220
Adobe Systems, Inc.*		1,700		36,193
MasterCard, Inc.		230		32,874
Western Union Co.		2,290		32,839
Motorola, Inc.		7,258		32,153
Juniper Networks, Inc.*		1,690		29,592
Paychex, Inc.		1,029		27,042
Intuit, Inc.*		1,030		24,504
Broadcom Corp. — Class A*		1,415		24,013
Tyco Electronics Ltd.		1,470		23,829
CA, Inc.		1,260		23,348
Xerox Corp.		2,768		22,061
Fiserv, Inc.*		510		18,549
Analog Devices, Inc.		928		17,651
Agilent Technologies, Inc.*		1,120		17,506
Computer Sciences Corp.*		488		17,148
McAfee, Inc.*		490		16,939
Cognizant Technology
Solutions Corp. — Class A*		928		16,760
Electronic Arts, Inc.*		1,033		16,569
Harris Corp.		430		16,362
BMC Software, Inc.*		600		16,146
Altera Corp.		950		15,875
Linear Technology Corp.		710		15,705
Xilinx, Inc.		879		15,664
NetApp, Inc.*		1,064		14,864
Affiliated Computer Services, Inc. — Class A*		310		14,245
Autodesk, Inc.*		719		14,128
Nvidia Corp.*		1,720		13,880
Citrix Systems, Inc.*		580		13,671
Flir Systems, Inc.*		440		13,499
Amphenol Corp.		560		13,429
VeriSign, Inc.*		617		11,772

			MARKET
	SHARES		VALUE
KLA-Tencor Corp.		540	$	11,767
Microchip Technology, Inc.		580		11,327
Salesforce.com, Inc.*		340		10,883
MEMC Electronic Materials, Inc.*		719		10,267
Fidelity National Information Services, Inc.		610		9,925
Sun Microsystems, Inc.*		2,370		9,053
Total System Services, Inc.		630		8,820
Teradata Corp.*		560		8,305
Akamai Technologies, Inc.*		540		8,149
SanDisk Corp.*		720		6,912
LSI Logic Corp.*		2,070		6,810
Lexmark International, Inc.*		250		6,725
Molex, Inc.		450		6,521
Micron Technology, Inc.*		2,449		6,465
National Semiconductor Corp.		615		6,193
QLogic Corp.*		410		5,510
Compuware Corp.*		790		5,333
Tellabs, Inc.*		1,269		5,228
Jabil Circuit, Inc.		668		4,509
Novell, Inc.*		1,105		4,298
Advanced Micro Devices, Inc.*		1,952		4,216
Novellus Systems, Inc.*		310		3,825
JDS Uniphase Corp.*		695		2,537
Convergys Corp.*		390		2,500
Teradyne, Inc.*		541		2,283
Ciena Corp.*		290		1,943
Total Information Technology				3,851,892
HEALTH CARE 10.6%
Johnson & Johnson, Inc.		8,888		531,769
Pfizer, Inc.		21,593		382,412
Abbott Laboratories		4,969		265,196
Merck & Company, Inc.		6,770		205,808
Amgen, Inc.*		3,385		195,484
Wyeth		4,261		159,830
Gilead Sciences, Inc.*		2,949		150,812
Bristol-Myers Squibb Co.		6,336		147,312
Eli Lilly & Co.		3,194		128,622
Medtronic, Inc.		3,579		112,452
Baxter International, Inc.		1,990		106,644
UnitedHealth Group, Inc.		3,870		102,942
Schering-Plough Corp.		5,207		88,675
Celgene Corp.*		1,470		81,262
WellPoint, Inc.*		1,627		68,546
Medco Health Solutions, Inc.*		1,590		66,637
Covidien Ltd.		1,609		58,310
Genzyme Corp.*		870		57,742
Becton, Dickinson & Co.		779		53,276
Thermo Fisher Scientific, Inc.*		1,349		45,960
Biogen Idec, Inc.*		925		44,058
Express Scripts, Inc.*		790		43,434
Aetna, Inc.		1,480		42,180
Cardinal Health, Inc.		1,150		39,640
Allergan, Inc.		978		39,433

30    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     NOVA FUND

			MARKET
	SHARES		VALUE
Boston Scientific Corp.*		4,809	$	37,222
St. Jude Medical, Inc.*		1,100		36,256
McKesson Corp.		879		34,044
Stryker Corp.		780		31,161
Zimmer Holdings, Inc.*		720		29,102
C.R. Bard, Inc.		320		26,963
Quest Diagnostics, Inc.		509		26,422
Forest Laboratories, Inc.*		969		24,680
Laboratory Corporation of America Holdings*		350		22,543
Humana, Inc.*		535		19,945
AmerisourceBergen Corp.		500		17,830
Cephalon, Inc.*		220		16,949
Intuitive Surgical, Inc.*		130		16,509
DaVita, Inc.*		329		16,309
CIGNA Corp.		878		14,794
Varian Medical Systems, Inc.*		400		14,016
Hospira, Inc.*		510		13,678
DENTSPLY International, Inc.		480		13,555
Life Technologies Corp.*		550		12,820
Waters Corp.*		310		11,361
Mylan Laboratories, Inc.*		980		9,692
Millipore Corp.*		180		9,274
Watson Pharmaceuticals, Inc.*		340		9,034
IMS Health, Inc.		579		8,778
King Pharmaceuticals, Inc.*		790		8,390
Coventry Health Care, Inc.*		480		7,142
Patterson Companies, Inc.*		290		5,438
PerkinElmer, Inc.		380		5,286
Tenet Healthcare Corp.*		1,325		1,524
Total Health Care				3,719,153
ENERGY 9.6%
Exxon Mobil Corp.		16,280		1,299,632
Chevron Corp.		6,510		481,545
ConocoPhillips		4,770		247,086
Schlumberger Ltd.		3,830		162,124
Occidental Petroleum Corp.		2,590		155,374
Devon Energy Corp.		1,409		92,585
Apache Corp.		1,065		79,374
XTO Energy, Inc.		1,845		65,073
Marathon Oil Corp.		2,260		61,834
Anadarko Petroleum Corp.		1,470		56,668
EOG Resources, Inc.		800		53,264
Halliburton Co.		2,860		51,995
Hess Corp.		909		48,759
Valero Energy Corp.		1,650		35,706
National-Oilwell Varco, Inc.*		1,335		32,627
Southwestern Energy Co.*		1,100		31,867
Baker Hughes, Inc.		980		31,429
Spectra Energy Corp.		1,960		30,850
Chesapeake Energy Corp.		1,726		27,909
Noble Energy, Inc.		550		27,071
Murphy Oil Corp.		610		27,053
Williams Companies, Inc.		1,849		26,774
Weatherford International Ltd.*		2,180		23,588

			MARKET
	SHARES		VALUE
Peabody Energy Corp.		850	$	19,338
Noble Corp.		850		18,777
El Paso Corp.		2,250		17,618
Range Resources Corp.		500		17,195
Consol Energy, Inc.		580		16,576
Sunoco, Inc.		370		16,080
Smith International, Inc.		697		15,954
Cameron International Corp.*		698		14,309
ENSCO International, Inc.		450		12,776
Nabors Industries Ltd.*		910		10,893
BJ Services Co.		930		10,853
Cabot Oil & Gas Corp.		330		8,580
Pioneer Natural Resources Co.		380		6,148
Tesoro Corp.		440		5,795
Rowan Companies, Inc.		360		5,724
Massey Energy Co.		270		3,723
Total Energy				3,350,526
FINANCIALS 9.5%
Wells Fargo & Co.		13,500		397,980
JPMorgan Chase & Co.		11,943		376,563
Bank of America Corp.		20,470		288,218
U.S. Bancorp		5,615		140,431
Goldman Sachs Group, Inc.		1,422		120,003
Citigroup, Inc.		17,441		117,029
Bank of New York Mellon Corp.		3,683		104,339
MetLife, Inc.		2,539		88,510
Travelers Companies, Inc.		1,870		84,524
American Express Co.		3,704		68,709
AFLAC, Inc.		1,490		68,302
PNC Financial Services Group, Inc.		1,370		67,130
Chubb Corp.		1,140		58,140
Allstate Corp.		1,720		56,347
Morgan Stanley		3,400		54,536
State Street Corp.		1,382		54,354
BB&T Corp.		1,768		48,549
Charles Schwab Corp.		3,002		48,542
CME Group, Inc.		210		43,703
Prudential Financial, Inc.		1,360		41,154
Marsh & McLennan Companies, Inc.		1,649		40,021
Capital One Financial Corp.		1,253		39,958
Aon Corp.		860		39,285
Simon Property Group, Inc.		720		38,254
Northern Trust Corp.		710		37,019
SunTrust Banks, Inc.		1,134		33,498
Loews Corp.		1,163		32,855
Progressive Corp.		2,159		31,975
Public Storage		400		31,800
Franklin Resources, Inc.		480		30,614
T. Rowe Price Group, Inc.		829		29,380
Hudson City Bancorp, Inc.		1,674		26,717
Vornado Realty Trust		438		26,433
Equity Residential		874		26,063
NYSE Euronext		847		23,191

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    31

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     NOVA FUND

			MARKET
	SHARES		VALUE
HCP, Inc.		810	$	22,494
Boston Properties, Inc.		390		21,450
People’s United Financial, Inc.		1,110		19,791
Unum Group		1,060		19,716
IntercontinentalExchange, Inc.*		230		18,961
Principal Financial Group, Inc.		827		18,665
Plum Creek Timber Company,
Inc. (REIT)		530		18,412
Invesco Ltd.		1,230		17,761
Regions Financial Corp.		2,221		17,679
Ameriprise Financial, Inc.		690		16,118
Hartford Financial Services
Group, Inc.		960		15,763
Lincoln National Corp.		820		15,449
Fifth Third Bancorp		1,852		15,298
Cincinnati Financial Corp.		519		15,087
AvalonBay Communities, Inc.		246		14,903
Discover Financial Services		1,537		14,648
M&T Bank Corp.		246		14,123
KeyCorp		1,587		13,521
American International
Group, Inc.		8,606		13,512
SLM Corp.*		1,500		13,350
KIMCO Realty Corp.		725		13,253
Host Hotels & Resorts, Inc.		1,669		12,634
Moody’s Corp.		620		12,456
Torchmark Corp.		270		12,069
ProLogis		850		11,807
Assurant, Inc.		380		11,400
Marshall & Ilsley Corp.		830		11,321
Leucadia National Corp.*		570		11,286
Nasdaq Stock Market, Inc.*		440		10,872
Legg Mason, Inc.		450		9,860
Comerica, Inc.		480		9,528
Zions Bancorporation		365		8,946
Huntington Bancshares, Inc.		1,165		8,924
First Horizon National Corp.		661		6,986
CIT Group, Inc.		1,150		5,221
Sovereign Bancorp, Inc.*		1,744		5,197
Federated Investors,
Inc. — Class B		277		4,698
Janus Capital Group, Inc.		510		4,095
Genworth Financial,
Inc. — Class A		1,389		3,931
XL Capital Ltd.		1,060		3,922
Apartment Investment &
Management Co. — Class A		320		3,696
CB Richard Ellis Group,
Inc. — Class A*		710		3,067
MBIA, Inc.*		600		2,442
American Capital Ltd.		659		2,135
E*Trade Financial Corp.*		1,799		2,069
Developers Diversified
Realty Corp.		390		1,903
Total Financials				3,344,545

			MARKET
	SHARES		VALUE
CONSUMER STAPLES 9.2%
Procter & Gamble Co.		9,560	$	590,999
Wal-Mart Stores, Inc.		7,162		401,502
Coca-Cola Co.		6,364		288,098
Philip Morris International, Inc.		6,480		281,945
PepsiCo, Inc.		4,968		272,097
CVS Caremark Corp.		4,599		132,175
Kraft Foods, Inc.		4,710		126,464
Colgate-Palmolive Co.		1,618		110,898
Altria Group, Inc.		6,593		99,291
Walgreen Co.		3,167		78,130
Costco Wholesale Corp.		1,380		72,450
Kimberly-Clark Corp.		1,330		70,144
General Mills, Inc.		1,070		65,003
Archer-Daniels-Midland Co.		2,048		59,044
Kroger Co.		2,088		55,144
Sysco Corp.		1,917		43,976
H.J. Heinz Co.		1,013		38,089
Kellogg Co.		807		35,387
UST, Inc.		475		32,956
Avon Products, Inc.		1,369		32,897
Safeway, Inc.		1,370		32,565
Lorillard, Inc.		540		30,429
Clorox Co.		440		24,446
ConAgra Foods, Inc.		1,430		23,595
Molson Coors Brewing
Co. — Class B		480		23,482
Sara Lee Corp.		2,264		22,165
Reynolds American, Inc.		538		21,687
Campbell Soup Co.		660		19,807
Hershey Co.		530		18,412
J.M. Smucker Co.		380		16,477
Brown-Forman Corp. — Class B		310		15,962
McCormick & Company, Inc.		420		13,381
Dr Pepper Snapple Group, Inc.*		805		13,081
Coca-Cola Enterprises, Inc.		1,016		12,222
Estee Lauder Companies,
Inc. — Class A		370		11,455
SUPERVALU, INC.		680		9,928
Constellation Brands,
Inc. — Class A*		620		9,777
Pepsi Bottling Group, Inc.		430		9,679
Dean Foods Co.*		490		8,805
Tyson Foods, Inc. — Class A		970		8,497
Whole Foods Market, Inc.		453		4,276
Total Consumer Staples				3,236,817
INDUSTRIALS 8.0%
General Electric Co.		33,624		544,709
United Parcel Service,
Inc. — Class B		3,190		175,960
United Technologies Corp.		3,040		162,944
3M Co.		2,219		127,681
Boeing Co.		2,349		100,232
Emerson Electric Co.		2,460		90,061
Lockheed Martin Corp.		1,065		89,545

32    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     NOVA FUND

			MARKET
	SHARES		VALUE
Caterpillar, Inc.		1,930	$	86,213
Union Pacific Corp.		1,620		77,436
Honeywell International, Inc.		2,330		76,494
General Dynamics Corp.		1,250		71,987
Burlington Northern Santa
Fe Corp.		899		68,063
Raytheon Co.		1,329		67,832
FedEx Corp.		999		64,086
Norfolk Southern Corp.		1,190		55,990
Deere & Co.		1,369		52,460
Waste Management, Inc.		1,570		52,030
Northrop Grumman Corp.		1,050		47,292
Danaher Corp.		820		46,420
Illinois Tool Works, Inc.		1,260		44,163
CSX Corp.		1,260		40,912
Paccar, Inc.		1,164		33,290
Tyco International Ltd.		1,510		32,616
CH Robinson Worldwide, Inc.		540		29,716
L-3 Communications Holdings, Inc.		380		28,036
Precision Castparts Corp.		450		26,766
ITT Corporation		575		26,444
Eaton Corp.		530		26,346
Fluor Corp.		580		26,025
Republic Services, Inc.		1,030		25,534
Expeditors International of Washington, Inc.		680		22,624
Parker Hannifin Corp.		520		22,121
Southwest Airlines Co.		2,369		20,421
Rockwell Collins, Inc.		510		19,936
Dover Corp.		599		19,719
Jacobs Engineering Group, Inc.*		389		18,711
Ingersoll-Rand Co. — Class A		1,024		17,766
Cummins, Inc.		640		17,107
Pitney Bowes, Inc.		660		16,817
W.W. Grainger, Inc.		210		16,556
Cooper Industries Ltd. — Class A		560		16,369
Rockwell Automation, Inc.		450		14,508
Goodrich Corp.		390		14,438
Fastenal Co.		410		14,289
Stericycle, Inc.*		270		14,062
Dun & Bradstreet Corp.		170		13,124
Masco Corp.		1,150		12,800
Avery Dennison Corp.		340		11,128
Pall Corp.		380		10,803
Textron, Inc.		770		10,680
Equifax, Inc.		400		10,608
Robert Half International, Inc.		499		10,389
Iron Mountain, Inc.*		417		10,312
Cintas Corp.		420		9,757

			MARKET
	SHARES		VALUE
Flowserve Corp.		180	$	9,270
RR Donnelley & Sons Co.		660		8,963
Ryder System, Inc.		180		6,980
Monster Worldwide, Inc.*		390		4,715
Manitowoc Company, Inc.		416		3,603
Total Industrials				2,795,859
CONSUMER DISCRETIONARY 6.0%
McDonald’s Corp.		3,567		221,832
Comcast Corp. — Class A		9,220		155,634
Walt Disney Co.		5,930		134,552
Home Depot, Inc.		5,425		124,883
Time Warner, Inc.		11,490		115,589
Lowe’s Companies, Inc.		4,690		100,929
Target Corp.		2,412		83,286
News Corp. — Class A		7,371		67,002
Nike, Inc. — Class B		1,259		64,209
Amazon.com, Inc.*		1,025		52,562
Yum! Brands, Inc.		1,480		46,620
Staples, Inc.		2,284		40,929
DIRECTV Group, Inc.*		1,750		40,092
Viacom, Inc. — Class B*		1,960		37,358
Kohl’s Corp.*		979		35,440
Johnson Controls, Inc.		1,899		34,486
Carnival Corp.		1,401		34,072
Best Buy Company, Inc.		1,080		30,359
TJX Companies, Inc.		1,330		27,358
Omnicom Group, Inc.		1,000		26,920
Apollo Group, Inc. — Class A*		340		26,051
H&R Block, Inc.		1,085		24,651
McGraw-Hill Companies, Inc.		1,010		23,422
Starbucks Corp.*		2,359		22,316
Coach, Inc.*		1,050		21,808
Bed Bath & Beyond, Inc.*		830		21,099
The Gap, Inc.		1,490		19,951
Fortune Brands, Inc.		479		19,773
Genuine Parts Co.		510		19,309
Sherwin-Williams Co.		310		18,522
Mattel, Inc.		1,148		18,368
Marriott International, Inc. — Class A		940		18,283
CBS Corp.		2,179		17,846
Ford Motor Co.*		7,648		17,514
AutoZone, Inc.*		120		16,736
VF Corp.		279		15,281
J.C. Penney Company, Inc.		709		13,967
Macy’s, Inc.		1,349		13,962
Harley-Davidson, Inc.		750		12,728
Darden Restaurants, Inc.		440		12,399
Family Dollar Stores, Inc.		450		11,732
Hasbro, Inc.		400		11,668
GameStop Corp. — Class A*		517		11,198

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    33

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     NOVA FUND

			MARKET
	SHARES		VALUE
International Game
Technology, Inc.		940	$	11,177
Starwood Hotels & Resorts Worldwide, Inc.		590		10,561
Whirlpool Corp.		240		9,924
Tiffany & Co.		390		9,216
Limited Brands, Inc.		870		8,735
Newell Rubbermaid, Inc.		890		8,704
Stanley Works		250		8,525
Wynn Resorts Ltd.*		200		8,452
Polo Ralph Lauren Corp.		175		7,947
Black & Decker Corp.		190		7,944
Washington Post Co. — Class B		20		7,805
Leggett & Platt, Inc.		500		7,595
Pulte Homes, Inc.		680		7,432
Snap-On, Inc.		180		7,088
Sears Holdings Corp.*		181		7,035
Nordstrom, Inc.		510		6,788
Abercrombie & Fitch Co. — Class A		280		6,460
Scripps Networks Interactive, Inc.		290		6,380
General Motors Corp.		1,960		6,272
D.R. Horton, Inc.		879		6,215
Interpublic Group of
Companies, Inc.*		1,534		6,075
Gannett Co., Inc.		730		5,840
Eastman Kodak Co.		860		5,659
Expedia, Inc.*		669		5,513
RadioShack Corp.		400		4,776
Goodyear Tire & Rubber Co.*		765		4,567
Centex Corp.		397		4,224
Lennar Corp. — Class A		450		3,902
Big Lots, Inc.*		260		3,767
Wyndham Worldwide Corp.		570		3,734
AutoNation, Inc.*		350		3,458
KB HOME		236		3,214
Harman International Industries, Inc.		186		3,112
New York Times Co. — Class A		370		2,712
Office Depot, Inc.*		880		2,622
Meredith Corp.		120		2,054
Jones Apparel Group, Inc.		270		1,582
Total Consumer Discretionary				2,109,762
UTILITIES 3.0%
Exelon Corp.		2,109		117,282
Southern Co.		2,479		91,723
Dominion Resources, Inc.		1,855		66,483
FPL Group, Inc.		1,310		65,932
Duke Energy Corp.		4,044		60,701
Entergy Corp.		609		50,626
FirstEnergy Corp.		980		47,608
Public Service Enterprise
Group, Inc.		1,620		47,255
PG&E Corp.		1,155		44,710

			MARKET
	SHARES		VALUE
American Electric Power
Company, Inc.		1,289	$	42,898
PPL Corp.		1,199		36,797
Consolidated Edison, Inc.		880		34,258
Progress Energy, Inc.		839		33,434
Edison International		1,040		33,405
Sempra Energy		780		33,251
Xcel Energy, Inc.		1,439		26,694
Ameren Corp.		680		22,617
DTE Energy Co.		520		18,548
Questar Corp.		560		18,306
Allegheny Energy, Inc.		539		18,251
AES Corp.*		2,150		17,716
Wisconsin Energy Corp.		370		15,533
Constellation Energy
Group, Inc.		570		14,301
Equitable Resources, Inc.		420		14,091
CenterPoint Energy, Inc.		1,095		13,819
SCANA Corp.		380		13,528
Pepco Holdings, Inc.		690		12,254
Integrys Energy Group, Inc.		240		10,315
Pinnacle West Capital Corp.		320		10,282
NiSource, Inc.		879		9,643
TECO Energy, Inc.		679		8,386
CMS Energy Corp.		720		7,279
Nicor, Inc.		140		4,864
Dynegy Inc.*		1,615		3,230
Total Utilities				1,066,020
TELECOMMUNICATION SERVICES 2.8%
AT&T, Inc.		18,860		537,510
Verizon Communications, Inc.		9,099		308,456
American Tower Corp. — Class A*		1,272		37,295
Qwest Communications
International, Inc.		4,690		17,071
Sprint Nextel Corp.*		9,143		16,732
Embarq Corp.		460		16,542
Windstream Corp.		1,405		12,926
CenturyTel, Inc.		320		8,746
Frontier Communications Corp.		1,000		8,740
Total Telecommunication Services				964,018
MATERIALS 2.1%
Monsanto Co.		1,749		123,042
E.I. du Pont de Nemours and Co.		2,889		73,092
Newmont Mining Corp.		1,450		59,015
Praxair, Inc.		990		58,767
Nucor Corp.		1,010		46,662
Dow Chemical Co.		2,959		44,651
Air Products & Chemicals, Inc.		670		33,681
Freeport-McMoRan Copper & Gold, Inc.		1,210		29,572
Alcoa, Inc.		2,560		28,826
Rohm & Haas Co.		400		24,716

34    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     NOVA FUND

			MARKET
	SHARES		VALUE
Vulcan Materials Co.		350	$	24,353
PPG Industries, Inc.		530		22,488
Weyerhaeuser Co.		680		20,815
Ecolab, Inc.		540		18,981
Sigma-Aldrich Corp.		400		16,896
International Paper Co.		1,369		16,154
Owens-Illinois, Inc.*		530		14,485
United States Steel Corp.		370		13,764
Ball Corp.		300		12,477
Pactiv Corp.*		415		10,325
CF Industries Holdings, Inc.		175		8,603
Allegheny Technologies, Inc.		310		7,914
Sealed Air Corp.		510		7,619
Bemis Co.		318		7,530
International Flavors &
Fragrances, Inc.		250		7,430
Eastman Chemical Co.		230		7,293
MeadWestvaco Corp.		550		6,155
AK Steel Holding Corp.		357		3,327
Titanium Metals Corp.		270		2,379
Total Materials				751,012
Total Common Stocks (Cost $27,007,608)				25,189,604
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 29.8%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	2,680,020		2,680,020
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		2,680,020		2,680,020
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		2,680,020		2,680,020
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		2,418,916		2,418,916
Total Repurchase Agreements (Cost $10,458,976)				10,458,976
Total Investments 101.6% (Cost $37,466,584)			$	35,648,580
Liabilities in Excess of
Other Assets — (1.6)%			$	(561,697	)
Net Assets — 100.0%			$	35,086,883

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS PURCHASED
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $20,666,475)		459	$	442,503
		UNITS
EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International January 2009 S&P500 Index Swap, Terminating 01/08/09** (Notional Market Value $6,551,259)		7,253	$	235,937

*	Non-Income Producing Security.
**	Total Return based on S&P 500 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
	REIT — Real Estate Investment Trust

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    35

SCHEDULE OF INVESTMENTS

December 31, 2008

     INVERSE S&P 500 STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 41.9%
Federal Home Loan Bank* 0.20% due 01/06/09	$	5,000,000	$	4,999,892
Federal Farm Credit Bank* 0.25% due 01/02/09		2,000,000		2,000,000
Freddie Mac†† 0.05% due 01/29/09		2,000,000		1,999,925
Farmer Mac* 0.07% due 01/07/09		1,000,000		999,990
Total Federal Agency Discount Notes (Cost $9,999,807)				9,999,807
REPURCHASE AGREEMENTS† 35.0%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		2,144,450		2,144,450
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		2,144,450		2,144,450
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		2,144,450		2,144,450
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,935,523		1,935,523
Total Repurchase Agreements (Cost $8,368,873)				8,368,873
Total Investments 76.9% (Cost $18,368,680)			$	18,368,680
Other Assets in Excess of Liabilities – 23.1%			$	5,508,815
Net Assets – 100.0%			$	23,877,495

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS SOLD SHORT
March 2009 S&P500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $11,391,325)		253	$	(69,133	)
		UNITS
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
Goldman Sachs International January 2009 S&P500 Index Swap, Terminating 01/08/09** (Notional Market Value $12,210,187)		13,518	$	54,078

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	Total Return based on S&P 500 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
††	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.

36    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     NASDAQ - 100^® FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 86.2%
INFORMATION TECHNOLOGY 50.8%
Apple, Inc.*		32,770	$	2,796,919
Qualcomm, Inc.		52,770		1,890,749
Microsoft Corp.		80,920		1,573,085
Google, Inc. — Class A*		3,850		1,184,452
Oracle Corp.*		56,810		1,007,241
Cisco Systems, Inc.*		55,290		901,227
Intel Corp.		51,480		754,697
Research In Motion Ltd.*		14,950		606,671
Automatic Data Processing, Inc.		9,490		373,337
eBay, Inc.*		25,170		351,373
Symantec Corp.*		23,110		312,447
Adobe Systems, Inc.*		13,750		292,738
Activision Blizzard Inc.*		31,260		270,086
Intuit, Inc.*		10,660		253,601
CA, Inc.		13,160		243,855
Paychex, Inc.		9,050		237,834
Yahoo!, Inc.*		17,630		215,086
Dell, Inc.*		18,910		193,638
Fiserv, Inc.*		5,290		192,397
Applied Materials, Inc.		18,340		185,784
Altera Corp.		11,050		184,646
Broadcom Corp. — Class A*		10,770		182,767
Linear Technology Corp.		7,830		173,200
Xilinx, Inc.		9,600		171,072
Juniper Networks, Inc.*		9,170		160,567
Electronic Arts, Inc.*		8,550		137,142
Cognizant Technology Solutions Corp. — Class A*		7,500		135,450
Citrix Systems, Inc.*		5,700		134,349
NetApp, Inc.*		9,120		127,406
Autodesk, Inc.*		6,230		122,420
KLA-Tencor Corp.		5,410		117,884
Flir Systems, Inc.*		3,840		117,811
Nvidia Corp.*		13,940		112,496
Check Point Software Technologies Ltd.*		5,590		106,154
Marvell Technology Group Ltd.*		15,410		102,785
Maxim Integrated Products, Inc.		8,220		93,872
VeriSign, Inc.*		4,840		92,347
Baidu.com — SP ADR*		700		91,399
Microchip Technology, Inc.		4,000		78,120
Infosys Technologies Ltd. — SP ADR		2,970		72,973
Lam Research Corp.*		3,410		72,565
Logitech International SA*		4,610		71,824
Akamai Technologies, Inc.*		4,280		64,585
IAC/InterActiveCorp*		3,850		60,561
Flextronics International Ltd.*		23,210		59,418
Seagate Technology		12,870		57,014
Sun Microsystems, Inc.*		8,490		32,432
Total Information Technology				16,770,476

			MARKET
	SHARES		VALUE
HEALTH CARE 17.5%
Gilead Sciences, Inc.*		23,700	$	1,212,018
Amgen, Inc.*		13,050		753,638
Teva Pharmaceutical
Industries Ltd. — SP ADR		16,870		718,156
Celgene Corp.*		12,010		663,913
Genzyme Corp.*		8,960		594,675
Biogen Idec, Inc.*		8,380		399,139
Express Scripts, Inc.*		5,840		321,083
Cephalon, Inc.*		1,760		135,590
Intuitive Surgical, Inc.*		1,030		130,800
Vertex Pharmaceuticals, Inc.*		4,160		126,381
Life Technologies Corp.*		4,640		108,158
DENTSPLY International, Inc.		3,780		106,747
Warner Chilcott Ltd.*		6,600		95,700
Hologic, Inc.*		7,120		93,058
Pharmaceutical Product
Development, Inc.		3,030		87,900
Henry Schein, Inc.*		2,350		86,222
Illumina, Inc.*		3,210		83,621
Patterson Companies, Inc.*		3,080		57,750
Total Health Care				5,774,549
CONSUMER DISCRETIONARY 10.4%
Comcast Corp. — Class A		38,130		643,635
DIRECTV Group, Inc.*		20,210		463,011
Amazon.com, Inc.*		7,530		386,138
Apollo Group, Inc. — Class A*		4,250		325,635
Starbucks Corp.*		26,950		254,947
Bed Bath & Beyond, Inc.*		9,230		234,627
Staples, Inc.		12,670		227,046
Wynn Resorts Ltd.*		3,230		136,500
Sears Holdings Corp.*		3,420		132,935
O’Reilly Automotive, Inc.*		3,540		108,820
Ross Stores, Inc.		3,520		104,650
Garmin Ltd.		4,970		95,275
Urban Outfitters, Inc.*		4,390		65,762
Liberty Global, Inc. — Class A*		4,020		63,998
DISH Network Corp. — Class A*		5,690		63,102
Expedia, Inc.*		7,460		61,470
Liberty Media Corp - Interactive*		14,380		44,866
Focus Media Holding — SP ADR*		3,020		27,452
Total Consumer Discretionary				3,439,869
INDUSTRIALS 5.1%
Paccar, Inc.		10,740		307,164
First Solar, Inc.*		1,880		259,365
CH Robinson Worldwide, Inc.		4,420		243,233
Expeditors International of Washington, Inc.		5,500		182,985
Fastenal Co.		3,750		130,687
Stericycle, Inc.*		2,380		123,950
Cintas Corp.		4,850		112,665

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    37

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     NASDAQ - 100^® FUND

			MARKET
	SHARES		VALUE
Ryanair Holdings PLC — SP ADR*		3,070	$	89,276
J.B. Hunt Transport Services, Inc.		3,330		87,479
Foster Wheeler Ltd.*		3,480		81,362
Joy Global, Inc.		2,650		60,659
Total Industrials				1,678,825
CONSUMER STAPLES 1.2%
Costco Wholesale Corp.		6,010		315,525
Hansen Natural Corp.*		2,420		81,143
Total Consumer Staples				396,668
TELECOMMUNICATION SERVICES 0.6%
Millicom International
Cellular SA		2,770		124,400
NII Holdings, Inc. — Class B*		4,260		77,447
Total Telecommunication Services				201,847
MATERIALS 0.6%
Sigma-Aldrich Corp.		3,180		134,323
Steel Dynamics, Inc.		4,950		55,341
Total Materials				189,664
Total Common Stocks (Cost $22,856,861)				28,451,898
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 10.4%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	875,912		875,912
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		875,912		875,912
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		875,912		875,912
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		790,577		790,577
Total Repurchase Agreements (Cost $3,418,313)				3,418,313
Total Investments 96.6% (Cost $26,275,174)			$	31,870,211
Other Assets in Excess of Liabilities – 3.4%			$	1,116,119
Net Assets – 100.0%			$	32,986,330

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS PURCHASED
March 2009 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $798,765)		33	$	25,215
		UNITS
EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International January 2009 NASDAQ-100 Index Swap, Terminating 01/08/09** (Notional Market Value $3,802,224)		3,138	$	13,995

*	Non-Income Producing Security.
**	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
	ADR — American Depository Receipt.

38    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     INVERSE NASDAQ - 100^® STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 8.2%
Federal Home Loan Bank* 0.20% due 01/08/09	$	1,000,000	$	999,967
Total Federal Agency Discount Notes (Cost $999,967)				999,967
REPURCHASE AGREEMENTS† 96.8%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		3,006,580		3,006,580
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		3,006,580		3,006,580
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		3,006,580		3,006,580
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		2,713,660		2,713,660
Total Repurchase Agreements (Cost $11,733,400)				11,733,400
Total Investments 105.0% (Cost $12,733,367)			$	12,733,367
Liabilities in Excess of Other Assets – (5.0)%			$	(606,001	)
Net Assets – 100.0%			$	12,127,366

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS SOLD SHORT
March 2009 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $10,771,225)		445	$	60,386
		UNITS
EQUITY INDEX SWAP AGREEMENT SOLD SHORT
Goldman Sachs International January 2009 NASDAQ-100 Index Swap, Terminating 01/08/09** (Notional Market Value $1,305,421)		1,077	$	15,823

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    39

SCHEDULE OF INVESTMENTS

December 31, 2008

     S&P 500 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 61.2%
INFORMATION TECHNOLOGY 9.4%
Microsoft Corp.		15,760	$	306,374
International Business
Machines Corp.		2,770		233,123
Cisco Systems, Inc.*		12,060		196,578
Hewlett-Packard Co.		5,046		183,119
Intel Corp.		11,460		168,004
Apple, Inc.*		1,829		156,105
Google, Inc. — Class A*		490		150,748
Oracle Corp.*		8,069		143,063
Qualcomm, Inc.		3,407		122,073
EMC Corp*		4,200		43,974
Texas Instruments, Inc.		2,670		41,438
Automatic Data Processing, Inc.		1,045		41,110
Dell, Inc.*		3,570		36,557
Yahoo!, Inc.*		2,859		34,880
eBay, Inc.*		2,210		30,852
Corning, Inc.		3,200		30,496
Applied Materials, Inc.		2,757		27,928
Symantec Corp.*		1,717		23,214
Adobe Systems, Inc.*		1,087		23,142
Western Union Co.		1,470		21,080
MasterCard, Inc.		146		20,868
Motorola, Inc.		4,667		20,675
Juniper Networks, Inc.*		1,090		19,086
Paychex, Inc.		656		17,240
Broadcom Corp. — Class A*		924		15,680
Intuit, Inc.*		658		15,654
Tyco Electronics Ltd.		940		15,237
CA, Inc.		810		15,009
Xerox Corp.		1,780		14,187
Fiserv, Inc.*		327		11,893
Analog Devices, Inc.		600		11,412
Agilent Technologies, Inc.*		720		11,254
Computer Sciences Corp.*		313		10,999
Cognizant Technology
Solutions Corp. — Class A*		599		10,818
McAfee, Inc.*		310		10,717
Harris Corp.		279		10,616
Electronic Arts, Inc.*		660		10,586
BMC Software, Inc.*		387		10,414
Altera Corp.		610		10,193
Linear Technology Corp.		460		10,175
Xilinx, Inc.		560		9,979
NetApp, Inc.*		680		9,500
Autodesk, Inc.*		470		9,235
Affiliated Computer Services,
Inc. — Class A*		200		9,190
Nvidia Corp.*		1,110		8,958
Citrix Systems, Inc.*		370		8,721
Amphenol Corp.		360		8,633
Flir Systems, Inc.*		280		8,590

			MARKET
	SHARES		VALUE
KLA-Tencor Corp.		350	$	7,627
VeriSign, Inc.*		396		7,556
Microchip Technology, Inc.		370		7,226
Salesforce.com, Inc.*		220		7,042
MEMC Electronic Materials, Inc.*		460		6,569
Fidelity National Information Services, Inc.		386		6,280
Sun Microsystems, Inc.*		1,520		5,806
Total System Services, Inc.		412		5,768
Teradata Corp.*		360		5,339
Akamai Technologies, Inc.*		350		5,282
SanDisk Corp.*		470		4,512
LSI Logic Corp.*		1,325		4,359
Lexmark International, Inc.*		160		4,304
Molex, Inc.		290		4,202
Micron Technology, Inc.*		1,571		4,147
National Semiconductor Corp.		400		4,028
QLogic Corp.*		260		3,494
Compuware Corp.*		510		3,443
Tellabs, Inc.*		816		3,362
Jabil Circuit, Inc.		428		2,889
Novell, Inc.*		713		2,774
Advanced Micro Devices, Inc.*		1,250		2,700
Novellus Systems, Inc.*		200		2,468
JDS Uniphase Corp.*		450		1,643
Convergys Corp.*		246		1,577
Teradyne, Inc.*		350		1,477
Ciena Corp.*		186		1,246
Total Information Technology				2,476,497
HEALTH CARE 9.0%
Johnson & Johnson, Inc.		5,718		342,108
Pfizer, Inc.		13,892		246,027
Abbott Laboratories		3,204		170,998
Merck & Company, Inc.		4,360		132,544
Amgen, Inc.*		2,177		125,722
Wyeth		2,742		102,852
Gilead Sciences, Inc.*		1,895		96,910
Bristol-Myers Squibb Co.		4,083		94,930
Eli Lilly & Co.		2,059		82,916
Medtronic, Inc.		2,298		72,203
Baxter International, Inc.		1,280		68,595
UnitedHealth Group, Inc.		2,489		66,207
Schering-Plough Corp.		3,353		57,102
Celgene Corp.*		939		51,908
WellPoint, Inc.*		1,045		44,026
Medco Health Solutions, Inc.*		1,030		43,167
Covidien Ltd.		1,042		37,762
Genzyme Corp.*		563		37,366
Becton, Dickinson & Co.		499		34,127
Thermo Fisher Scientific, Inc.*		870		29,641
Biogen Idec, Inc.*		596		28,388
Express Scripts, Inc.*		506		27,820
Aetna, Inc.		950		27,075

40    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     S&P 500 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Cardinal Health, Inc.		741	$	25,542
Allergan, Inc.		633		25,523
Boston Scientific Corp.*		3,087		23,893
St. Jude Medical, Inc.*		710		23,402
McKesson Corp.		565		21,882
Stryker Corp.		500		19,975
Zimmer Holdings, Inc.*		460		18,593
Quest Diagnostics, Inc.		328		17,027
C.R. Bard, Inc.		200		16,852
Forest Laboratories, Inc.*		620		15,791
Laboratory Corporation of America Holdings*		220		14,170
Humana, Inc.*		350		13,048
AmerisourceBergen Corp.		320		11,411
Cephalon, Inc.*		140		10,786
DaVita, Inc.*		210		10,410
CIGNA Corp.		569		9,588
Intuitive Surgical, Inc.*		75		9,524
Varian Medical Systems, Inc.*		260		9,110
Hospira, Inc.*		328		8,797
DENTSPLY International, Inc.		310		8,754
Life Technologies Corp.*		360		8,392
Waters Corp.*		198		7,257
Mylan Laboratories, Inc.*		630		6,231
Watson Pharmaceuticals, Inc.*		220		5,845
IMS Health, Inc.		367		5,564
Millipore Corp.*		106		5,461
King Pharmaceuticals, Inc.*		510		5,416
Coventry Health Care, Inc.*		308		4,583
Patterson Companies, Inc.*		187		3,506
PerkinElmer, Inc.		240		3,338
Tenet Healthcare Corp.*		859		988
Total Health Care				2,391,053
ENERGY 8.1%
Exxon Mobil Corp.		10,480		836,618
Chevron Corp.		4,190		309,934
ConocoPhillips		3,070		159,026
Schlumberger Ltd.		2,463		104,259
Occidental Petroleum Corp.		1,670		100,183
Devon Energy Corp.		913		59,993
Apache Corp.		690		51,426
XTO Energy, Inc.		1,186		41,830
Marathon Oil Corp.		1,453		39,754
Anadarko Petroleum Corp.		950		36,623
EOG Resources, Inc.		514		34,222
Halliburton Co.		1,842		33,488
Hess Corp.		580		31,111
Valero Energy Corp.		1,060		22,938
National-Oilwell Varco, Inc.*		863		21,092
Southwestern Energy Co.*		710		20,569
Baker Hughes, Inc.		630		20,204
Spectra Energy Corp.		1,260		19,832
Chesapeake Energy Corp.		1,113		17,997
Noble Energy, Inc.		356		17,522

			MARKET
	SHARES		VALUE
Williams Companies, Inc.		1,191	$	17,246
Murphy Oil Corp.		385		17,075
Weatherford International Ltd.*		1,397		15,116
Peabody Energy Corp.		550		12,513
Noble Corp.		540		11,929
El Paso Corp.		1,440		11,275
Range Resources Corp.		320		11,005
Consol Energy, Inc.		370		10,575
Sunoco, Inc.		240		10,430
Smith International, Inc.		446		10,209
Cameron International Corp.*		449		9,205
ENSCO International, Inc.		290		8,233
Nabors Industries Ltd.*		585		7,002
BJ Services Co.		600		7,002
Cabot Oil & Gas Corp.		210		5,460
Pioneer Natural Resources Co.		240		3,883
Tesoro Corp.		290		3,819
Rowan Companies, Inc.		229		3,641
Massey Energy Co.		180		2,482
Total Energy				2,156,721
FINANCIALS 8.1%
Wells Fargo & Co.		8,630		254,412
JPMorgan Chase & Co.		7,691		242,497
Bank of America Corp.		13,070		184,026
U.S. Bancorp		3,618		90,486
Goldman Sachs Group, Inc.		907		76,542
Citigroup, Inc.		11,226		75,326
Bank of New York Mellon Corp.		2,359		66,830
MetLife, Inc.		1,637		57,066
Travelers Companies, Inc.		1,196		54,059
American Express Co.		2,394		44,409
AFLAC, Inc.		960		44,006
PNC Financial Services Group, Inc.		870		42,630
Chubb Corp.		730		37,230
Allstate Corp.		1,100		36,036
Morgan Stanley		2,190		35,128
State Street Corp.		887		34,886
BB&T Corp.		1,142		31,359
Charles Schwab Corp.		1,925		31,127
CME Group, Inc.		140		29,135
Prudential Financial, Inc.		866		26,205
Capital One Financial Corp.		811		25,863
Marsh & McLennan Companies, Inc.		1,062		25,775
Aon Corp.		560		25,581
Simon Property Group, Inc.		466		24,759
Northern Trust Corp.		456		23,776
SunTrust Banks, Inc.		730		21,564
Loews Corp.		750		21,187
Progressive Corp.		1,393		20,630
Public Storage		258		20,511
Franklin Resources, Inc.		310		19,772

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    41

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     S&P 500 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
T. Rowe Price Group, Inc.		530	$	18,783
Hudson City Bancorp, Inc.		1,073		17,125
Vornado Realty Trust		278		16,777
Equity Residential		559		16,669
NYSE Euronext		550		15,059
HCP, Inc.		520		14,440
Boston Properties, Inc.		247		13,585
People’s United Financial, Inc.		720		12,838
Unum Group		680		12,648
IntercontinentalExchange, Inc.*		150		12,366
Principal Financial Group, Inc.		530		11,962
Plum Creek Timber Company, Inc. (REIT)		336		11,673
Invesco Ltd.		788		11,379
Regions Financial Corp.		1,428		11,367
Ameriprise Financial, Inc.		452		10,559
Hartford Financial Services Group, Inc.		622		10,213
Lincoln National Corp.		530		9,985
Fifth Third Bancorp		1,187		9,805
AvalonBay Communities, Inc.		160		9,693
Cincinnati Financial Corp.		326		9,477
Discover Financial Services		993		9,463
M&T Bank Corp.		160		9,186
American International Group, Inc.		5,538		8,695
KeyCorp		1,015		8,648
KIMCO Realty Corp.		471		8,610
SLM Corp.*		961		8,553
Host Hotels & Resorts, Inc.		1,080		8,176
Torchmark Corp.		180		8,046
Moody’s Corp.		397		7,976
ProLogis		553		7,681
Marshall & Ilsley Corp.		538		7,338
Assurant, Inc.		240		7,200
Leucadia National Corp.*		360		7,128
Nasdaq Stock Market, Inc.*		278		6,869
Legg Mason, Inc.		290		6,354
Comerica, Inc.		310		6,153
Zions Bancorporation		240		5,882
Huntington Bancshares, Inc.		753		5,768
First Horizon National Corp.		421		4,448
CIT Group, Inc.		740		3,360
Sovereign Bancorp, Inc.*		1,118		3,332
Federated Investors, Inc. — Class B		180		3,053
Janus Capital Group, Inc.		330		2,650
Genworth Financial, Inc. — Class A		890		2,519
XL Capital Ltd.		680		2,516
Apartment Investment & Management Co. — Class A		210		2,425
CB Richard Ellis Group, Inc. — Class A*		460		1,987

			MARKET
	SHARES		VALUE
MBIA, Inc.*		390	$	1,587
American Capital Ltd.		429		1,390
E*Trade Financial Corp.*		1,157		1,331
Developers Diversified Realty Corp.		246		1,200
Total Financials				2,148,740
CONSUMER STAPLES 7.9%
Procter & Gamble Co.		6,150		380,193
Wal-Mart Stores, Inc.		4,606		258,212
Coca-Cola Co.		4,102		185,698
Philip Morris International, Inc.		4,170		181,437
PepsiCo, Inc.		3,200		175,264
CVS Caremark Corp.		2,960		85,070
Kraft Foods, Inc.		3,030		81,355
Colgate-Palmolive Co.		1,040		71,282
Altria Group, Inc.		4,251		64,020
Walgreen Co.		2,038		50,277
Costco Wholesale Corp.		890		46,725
Kimberly-Clark Corp.		850		44,829
General Mills, Inc.		690		41,918
Archer-Daniels-Midland Co.		1,320		38,056
Kroger Co.		1,340		35,389
Sysco Corp.		1,230		28,216
H.J. Heinz Co.		654		24,590
Kellogg Co.		520		22,802
UST, Inc.		308		21,369
Avon Products, Inc.		877		21,074
Safeway, Inc.		879		20,894
Lorillard, Inc.		350		19,723
Clorox Co.		292		16,224
ConAgra Foods, Inc.		920		15,180
Molson Coors Brewing Co. — Class B		308		15,067
Sara Lee Corp.		1,458		14,274
Reynolds American, Inc.		350		14,109
Campbell Soup Co.		420		12,604
Hershey Co.		339		11,777
J.M. Smucker Co.		240		10,406
Brown-Forman Corp. — Class B		197		10,144
McCormick & Company, Inc.		270		8,602
Dr Pepper Snapple Group, Inc.*		520		8,450
Coca-Cola Enterprises, Inc.		650		7,820
Estee Lauder Companies, Inc. — Class A		240		7,430
SUPERVALU, INC.		440		6,424
Pepsi Bottling Group, Inc.		277		6,235
Constellation Brands,
Inc. — Class A*		395		6,229
Dean Foods Co.*		316		5,679
Tyson Foods, Inc. — Class A		623		5,457
Whole Foods Market, Inc.		290		2,738
Total Consumer Staples				2,083,242

42    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     S&P 500 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
INDUSTRIALS 6.9%
General Electric Co.		21,637	$	350,519
United Parcel Service,
Inc. — Class B		2,050		113,078
United Technologies Corp.		1,960		105,056
3M Co.		1,430		82,282
Boeing Co.		1,510		64,432
Lockheed Martin Corp.		693		58,267
Emerson Electric Co.		1,580		57,844
Caterpillar, Inc.		1,240		55,391
Union Pacific Corp.		1,040		49,712
Honeywell International, Inc.		1,500		49,245
General Dynamics Corp.		796		45,842
Burlington Northern Santa Fe Corp.		575		43,533
Raytheon Co.		850		43,384
FedEx Corp.		640		41,056
Norfolk Southern Corp.		760		35,758
Deere & Co.		877		33,607
Waste Management, Inc.		1,008		33,405
Northrop Grumman Corp.		670		30,177
Danaher Corp.		528		29,890
Iron Mountain, Inc.*		1,184		29,280
Illinois Tool Works, Inc.		810		28,390
CSX Corp.		810		26,301
Paccar, Inc.		750		21,450
Tyco International Ltd.		970		20,952
CH Robinson Worldwide, Inc.		350		19,260
L-3 Communications Holdings, Inc.		245		18,076
ITT Corporation		369		16,970
Precision Castparts Corp.		285		16,952
Eaton Corp.		338		16,802
Fluor Corp.		370		16,602
Republic Services, Inc.		660		16,361
Expeditors International of Washington, Inc.		440		14,639
Parker Hannifin Corp.		330		14,038
Southwest Airlines Co.		1,518		13,085
Rockwell Collins, Inc.		330		12,900
Dover Corp.		380		12,510
Jacobs Engineering Group, Inc.*		246		11,833
Ingersoll-Rand Co. — Class A		660		11,451
Cummins, Inc.		410		10,959
Pitney Bowes, Inc.		416		10,600
Cooper Industries Ltd. — Class A		360		10,523
W.W. Grainger, Inc.		130		10,249
Fastenal Co.		270		9,410
Stericycle, Inc.*		179		9,322
Rockwell Automation, Inc.		286		9,221
Goodrich Corp.		247		9,144
Dun & Bradstreet Corp.		110		8,492
Masco Corp.		739		8,225

			MARKET
	SHARES		VALUE
Avery Dennison Corp.		220	$	7,201
Textron, Inc.		500		6,935
Equifax, Inc.		257		6,816
Pall Corp.		236		6,709
Robert Half International, Inc.		320		6,662
Cintas Corp.		270		6,272
Flowserve Corp.		119		6,129
RR Donnelley & Sons Co.		420		5,704
Ryder System, Inc.		110		4,266
Monster Worldwide, Inc.*		247		2,986
Manitowoc Company, Inc.		270		2,338
Total Industrials				1,818,493
CONSUMER DISCRETIONARY 5.1%
McDonald’s Corp.		2,300		143,037
Comcast Corp. — Class A		5,930		100,098
Walt Disney Co.		3,810		86,449
Home Depot, Inc.		3,490		80,340
Time Warner, Inc.		7,385		74,293
Lowe’s Companies, Inc.		3,021		65,012
Target Corp.		1,550		53,521
News Corp. — Class A		4,737		43,059
Nike, Inc. — Class B		810		41,310
Amazon.com, Inc.*		663		33,999
Yum! Brands, Inc.		946		29,799
Staples, Inc.		1,468		26,307
DIRECTV Group, Inc.*		1,130		25,888
Viacom, Inc. — Class B*		1,260		24,016
Kohl’s Corp.*		630		22,806
Johnson Controls, Inc.		1,215		22,064
Carnival Corp.		904		21,985
Best Buy Company, Inc.		699		19,649
TJX Companies, Inc.		860		17,690
Omnicom Group, Inc.		640		17,229
Apollo Group, Inc. — Class A*		216		16,550
H&R Block, Inc.		695		15,790
McGraw-Hill Companies, Inc.		648		15,027
Starbucks Corp.*		1,516		14,341
Coach, Inc.*		670		13,916
Bed Bath & Beyond, Inc.*		539		13,701
The Gap, Inc.		957		12,814
Fortune Brands, Inc.		310		12,797
Genuine Parts Co.		330		12,494
Sherwin-Williams Co.		200		11,950
Mattel, Inc.		738		11,808
Marriott International, Inc. — Class A		600		11,670
CBS Corp.		1,401		11,474
Ford Motor Co.*		4,919		11,265
AutoZone, Inc.*		80		11,158
VF Corp.		180		9,859
J.C. Penney Company, Inc.		462		9,101
Macy’s, Inc.		870		9,004
Harley-Davidson, Inc.		480		8,146
Darden Restaurants, Inc.		287		8,088

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    43

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     S&P 500 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Family Dollar Stores, Inc.		287	$	7,482
Hasbro, Inc.		256		7,468
GameStop Corp. — Class A*		336		7,278
International Game Technology, Inc.		610		7,253
Starwood Hotels & Resorts Worldwide, Inc.		380		6,802
Whirlpool Corp.		150		6,202
Tiffany & Co.		249		5,884
Limited Brands, Inc.		560		5,622
Newell Rubbermaid, Inc.		569		5,565
Wynn Resorts Ltd.*		130		5,494
Stanley Works		160		5,456
Polo Ralph Lauren Corp.		118		5,358
Black & Decker Corp.		120		5,017
Leggett & Platt, Inc.		320		4,861
Pulte Homes, Inc.		440		4,809
Snap-On, Inc.		120		4,726
Nordstrom, Inc.		327		4,352
Sears Holdings Corp.*		110		4,276
Abercrombie & Fitch Co. — Class A		182		4,199
Scripps Networks Interactive, Inc.		190		4,180
General Motors Corp.		1,260		4,032
D.R. Horton, Inc.		566		4,002
Washington Post Co. — Class B		10		3,903
Interpublic Group of Companies, Inc.*		982		3,889
Gannett Co., Inc.		465		3,720
Eastman Kodak Co.		550		3,619
Expedia, Inc.*		426		3,510
RadioShack Corp.		260		3,104
Goodyear Tire & Rubber Co.*		496		2,961
Centex Corp.		260		2,766
Lennar Corp. — Class A		285		2,471
Big Lots, Inc.*		170		2,463
Wyndham Worldwide Corp.		373		2,443
KB HOME		159		2,166
AutoNation, Inc.*		216		2,134
Harman International
Industries, Inc.		118		1,974
New York Times Co. — Class A		240		1,759
Office Depot, Inc.*		574		1,711
Meredith Corp.		70		1,198
Jones Apparel Group, Inc.		166		973
Total Consumer Discretionary				1,356,586
UTILITIES 2.6%
Exelon Corp.		1,357		75,463
Southern Co.		1,603		59,311
Dominion Resources, Inc.		1,201		43,044
FPL Group, Inc.		836		42,076

			MARKET
	SHARES		VALUE
Duke Energy Corp.		2,612	$	39,206
Entergy Corp.		390		32,421
FirstEnergy Corp.		630		30,605
Public Service Enterprise Group, Inc.		1,037		30,249
PG&E Corp.		743		28,762
American Electric Power Company, Inc.		829		27,589
PPL Corp.		770		23,631
Consolidated Edison, Inc.		560		21,801
Edison International		668		21,456
Progress Energy, Inc.		535		21,320
Sempra Energy		500		21,315
Xcel Energy, Inc.		930		17,252
Ameren Corp.		440		14,634
DTE Energy Co.		336		11,985
Allegheny Energy, Inc.		349		11,817
Questar Corp.		357		11,670
AES Corp.*		1,387		11,429
Wisconsin Energy Corp.		240		10,075
Constellation Energy Group, Inc.		368		9,233
Equitable Resources, Inc.		270		9,059
CenterPoint Energy, Inc.		707		8,922
SCANA Corp.		240		8,544
Pepco Holdings, Inc.		450		7,992
Integrys Energy Group, Inc.		160		6,877
Pinnacle West Capital Corp.		210		6,747
NiSource, Inc.		569		6,242
TECO Energy, Inc.		435		5,372
CMS Energy Corp.		470		4,752
Nicor, Inc.		88		3,057
Dynegy Inc.*		1,040		2,080
Total Utilities				685,988
TELECOMMUNICATION SERVICES 2.3%
AT&T, Inc.		12,135		345,847
Verizon Communications, Inc.		5,852		198,383
American Tower Corp. — Class A*		821		24,072
Qwest Communications
International, Inc.		3,020		10,993
Sprint Nextel Corp.*		5,885		10,770
Embarq Corp.		288		10,356
Windstream Corp.		909		8,363
CenturyTel, Inc.		207		5,657
Frontier Communications Corp.		640		5,594
Total Telecommunication Services				620,035
MATERIALS 1.8%
Monsanto Co.		1,129		79,425
E.I. du Pont de Nemours and Co.		1,860		47,058
Newmont Mining Corp.		943		38,380
Praxair, Inc.		640		37,990

44    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     S&P 500 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Nucor Corp.		650	$	30,030
Dow Chemical Co.		1,900		28,671
Air Products & Chemicals, Inc.		425		21,365
Freeport-McMoRan Copper & Gold, Inc.		780		19,063
Alcoa, Inc.		1,650		18,579
Vulcan Materials Co.		230		16,003
Rohm & Haas Co.		255		15,757
PPG Industries, Inc.		340		14,426
Weyerhaeuser Co.		437		13,377
Ecolab, Inc.		350		12,303
Sigma-Aldrich Corp.		255		10,771
International Paper Co.		877		10,349
Owens-Illinois, Inc.*		340		9,292
United States Steel Corp.		237		8,816
Ball Corp.		190		7,902
Pactiv Corp.*		267		6,643
CF Industries Holdings, Inc.		120		5,899
Allegheny Technologies, Inc.		200		5,106
Bemis Co.		210		4,973
Sealed Air Corp.		327		4,885
Eastman Chemical Co.		150		4,757
International Flavors &
Fragrances, Inc.		160		4,755
MeadWestvaco Corp.		348		3,894
AK Steel Holding Corp.		230		2,144
Titanium Metals Corp.		180		1,586
Total Materials				484,199
Total Common Stocks (Cost $15,283,956)				16,221,554
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 22.7%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	1,543,868		1,543,868
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,543,868		1,543,868

	FACE		MARKET
	AMOUNT		VALUE
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09	$	1,543,868	$	1,543,868
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,393,455		1,393,455
Total Repurchase Agreements (Cost $6,025,059)				6,025,059
Total Investments 83.9% (Cost $21,309,015)			$	22,246,613
Other Assets in Excess of Liabilities – 16.1%			$	4,266,574
Net Assets – 100.0%			$	26,513,187
			Unrealized
		Contracts		Gain
FUTURES CONTRACTS PURCHASED
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $25,123,950)		558	$	529,828
		UNITS
EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International January 2009 S&P 500 Index Swap, Terminating 01/08/09** (Notional Market Value $11,507,669)		12,740	$	377,636

*	Non-Income Producing Security.
**	Total Return based on S&P 500 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
	REIT — Real Estate Investment Trust.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    45

SCHEDULE OF INVESTMENTS

December 31, 2008

     NASDAQ – 100^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 76.5%
INFORMATION TECHNOLOGY 45.1%
Apple, Inc.*		20,560	$	1,754,796
Qualcomm, Inc.		33,100		1,185,973
Microsoft Corp.		50,750		986,580
Google, Inc. — Class A*		2,420		744,513
Oracle Corp.*		35,630		631,720
Cisco Systems, Inc.*		34,680		565,284
Intel Corp.		32,290		473,372
Research In Motion Ltd.*		9,380		380,641
Automatic Data Processing, Inc.		5,950		234,073
eBay, Inc.*		15,790		220,428
Symantec Corp.*		14,490		195,905
Adobe Systems, Inc.*		8,630		183,733
Activision Blizzard Inc.*		19,610		169,430
Intuit, Inc.*		6,680		158,917
CA, Inc.		8,250		152,873
Paychex, Inc.		5,680		149,270
Yahoo!, Inc.*		11,060		134,932
Dell, Inc.*		11,860		121,446
Fiserv, Inc.*		3,320		120,748
Applied Materials, Inc.		11,500		116,495
Altera Corp.		6,930		115,800
Broadcom Corp. — Class A*		6,760		114,717
Linear Technology Corp.		4,910		108,609
Xilinx, Inc.		6,020		107,276
Juniper Networks, Inc.*		5,750		100,683
Electronic Arts, Inc.*		5,360		85,974
Cognizant Technology Solutions Corp. — Class A*		4,710		85,063
Citrix Systems, Inc.*		3,580		84,381
NetApp, Inc.*		5,720		79,908
Autodesk, Inc.*		3,910		76,832
Flir Systems, Inc.*		2,410		73,939
KLA-Tencor Corp.		3,390		73,868
Nvidia Corp.*		8,740		70,532
Check Point Software Technologies Ltd.*		3,510		66,655
Marvell Technology Group Ltd.*		9,670		64,499
Maxim Integrated Products, Inc.		5,160		58,927
VeriSign, Inc.*		3,030		57,812
Baidu.com — SP ADR*		440		57,451
Microchip Technology, Inc.		2,510		49,020
Infosys Technologies Ltd. — SP ADR		1,860		45,700
Lam Research Corp.*		2,140		45,539
Logitech International SA*		2,890		45,026
Akamai Technologies, Inc.*		2,690		40,592
IAC/InterActiveCorp*		2,420		38,067
Flextronics International Ltd.*		14,560		37,274
Seagate Technology		8,070		35,750
Sun Microsystems, Inc.*		5,330		20,361
Total Information Technology				10,521,384

			MARKET
	SHARES		VALUE
HEALTH CARE 15.5%
Gilead Sciences, Inc.*		14,870	$	760,452
Amgen, Inc.*		8,190		472,972
Teva Pharmaceutical Industries Ltd. — SP ADR		10,580		450,391
Celgene Corp.*		7,530		416,258
Genzyme Corp.*		5,620		372,999
Biogen Idec, Inc.*		5,260		250,534
Express Scripts, Inc.*		3,660		201,227
Cephalon, Inc.*		1,110		85,514
Intuitive Surgical, Inc.*		650		82,543
Vertex Pharmaceuticals, Inc.*		2,610		79,292
Life Technologies Corp.*		2,910		67,832
DENTSPLY International, Inc.		2,370		66,929
Warner Chilcott Ltd.*		4,140		60,030
Hologic, Inc.*		4,470		58,423
Pharmaceutical Product Development, Inc.		1,900		55,119
Henry Schein, Inc.*		1,480		54,301
Illumina, Inc.*		2,010		52,361
Patterson Companies, Inc.*		1,930		36,188
Total Health Care				3,623,365
CONSUMER DISCRETIONARY 9.2%
Comcast Corp. — Class A		23,920		403,770
DIRECTV Group, Inc.*		12,680		290,499
Amazon.com, Inc.*		4,720		242,042
Apollo Group, Inc. — Class A*		2,670		204,575
Starbucks Corp.*		16,900		159,874
Bed Bath & Beyond, Inc.*		5,790		147,182
Staples, Inc.		7,950		142,464
Wynn Resorts Ltd.*		2,020		85,365
Sears Holdings Corp.*		2,140		83,182
O’Reilly Automotive, Inc.*		2,220		68,243
Ross Stores, Inc.		2,210		65,703
Garmin Ltd.		3,110		59,619
Urban Outfitters, Inc.*		2,750		41,195
Liberty Global, Inc. — Class A*		2,520		40,118
DISH Network Corp. — Class A*		3,570		39,591
Expedia, Inc.*		4,680		38,563
Liberty Media Corp - Interactive*		9,020		28,142
Focus Media Holding — SP ADR*		1,900		17,271
Total Consumer Discretionary				2,157,398
INDUSTRIALS 4.5%
Paccar, Inc.		6,740		192,764
First Solar, Inc.*		1,180		162,793
CH Robinson Worldwide, Inc.		2,770		152,433
Expeditors International of
Washington, Inc.		3,450		114,782

46    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     NASDAQ — 100^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Fastenal Co.		2,350	$	81,898
Stericycle, Inc.*		1,490		77,599
Cintas Corp.		3,040		70,619
Ryanair Holdings PLC — SP ADR*		1,930		56,124
J.B. Hunt Transport Services, Inc.		2,090		54,904
Foster Wheeler Ltd.*		2,190		51,202
Joy Global, Inc.		1,660		37,997
Total Industrials				1,053,115
CONSUMER STAPLES 1.1%
Costco Wholesale Corp.		3,770		197,925
Hansen Natural Corp.*		1,520		50,966
Total Consumer Staples				248,891
TELECOMMUNICATION SERVICES 0.6%
Millicom International
Cellular SA		1,740		78,143
NII Holdings, Inc. — Class B*		2,670		48,541
Total Telecommunication Services				126,684
MATERIALS 0.5%
Sigma-Aldrich Corp.		2,000		84,480
Steel Dynamics, Inc.		3,110		34,770
Total Materials				119,250
Total Common Stocks (Cost $15,679,573)				17,850,087
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 10.4%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	622,620		622,620
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		622,620		622,620
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		622,620		622,620
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		561,961		561,961
Total Repurchase Agreements (Cost $2,429,821)				2,429,821
Total Investments 86.9% (Cost $18,109,394)			$	20,279,908
Other Assets in Excess of Liabilities — 13.1%			$	3,067,584
Net Assets — 100.0%			$	23,347,492

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS PURCHASED
March 2009 NASDAQ-100 Index Mini Futures Contracts (Aggregate Market Value of Contracts $20,380,610)		842	$	198,498
		UNITS
EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International January 2009 NASDAQ-100 Index Swap, Terminating 01/08/09** (Notional Market Value $8,649,829)		7,139	$	76,539

*	Non-Income Producing Security.
**	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    47

SCHEDULE OF INVESTMENTS

December 31, 2008

     MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 52.7%
FINANCIALS 11.1%
Everest Re Group Ltd.		640	$	48,730
Health Care REIT, Inc.		1,080		45,576
W.R. Berkley Corp.		1,450		44,950
New York Community Bancorp, Inc.		3,600		43,056
Fidelity National Financial, Inc. — Class A		2,210		39,227
Federal Realty Investment Trust		620		38,490
Regency Centers Corp.		730		34,091
Reinsurance Group of America, Inc.		760		32,543
HCC Insurance Holdings, Inc.		1,196		31,993
Cullen/Frost Bankers, Inc.		620		31,422
Commerce Bancshares, Inc.		689		30,282
Nationwide Health Properties, Inc.		1,035		29,725
Valley National Bancorp		1,420		28,755
Old Republic International Corp.		2,410		28,727
Associated Banc-Corp.		1,340		28,046
First American Corp.		970		28,023
Rayonier, Inc.		820		25,707
Arthur J. Gallagher & Co.		990		25,651
Eaton Vance Corp.		1,210		25,422
Brown & Brown, Inc.		1,210		25,289
Realty Income Corp.		1,088		25,187
Synovus Financial Corp.		2,940		24,402
AMB Property Corp.		1,030		24,123
Liberty Property Trust		1,030		23,515
Hanover Insurance Group, Inc.		530		22,774
Bank of Hawaii Corp.		500		22,585
SEI Investments Co.		1,390		21,837
Essex Property Trust, Inc.		280		21,490
Stancorp Financial Group, Inc.		510		21,303
Alexandria Real Estate Equities, Inc.		340		20,516
City National Corp.		420		20,454
First Niagara Financial Group, Inc.		1,240		20,051
UDR, Inc.		1,420		19,582
American Financial Group, Inc.		790		18,075
Highwoods Properties, Inc.		660		18,058
Affiliated Managers Group, Inc.*		430		18,026
BancorpSouth, Inc.		760		17,754
Jefferies Group, Inc.		1,260		17,716
Fulton Financial Corp.		1,830		17,605
Camden Property Trust		560		17,550
FirstMerit Corp.		850		17,501
Raymond James Financial, Inc.		1,010		17,301
Mercury General Corp.		370		17,016
Mack-Cali Realty Corp.		690		16,905
Duke Realty Corp.		1,540		16,878
Weingarten Realty Investors		810		16,759

			MARKET
	SHARES		VALUE
TCF Financial Corp.		1,200	$	16,392
Wilmington Trust Corp.		710		15,790
SL Green Realty Corp.		600		15,540
Westamerica Bancorporation		300		15,345
BRE Properties, Inc. — Class A		530		14,829
Hospitality Properties Trust		980		14,573
Macerich Co.		800		14,528
Omega Healthcare Investors, Inc.		870		13,894
Apollo Investment Corp.		1,490		13,872
Astoria Financial Corp.		840		13,843
Washington Federal, Inc.		920		13,763
Waddell & Reed Financial, Inc. — Class A		890		13,759
Cathay General Bancorp		520		12,350
Potlatch Corp.		410		10,664
Protective Life Corp.		730		10,476
Jones Lang LaSalle, Inc.		360		9,972
AmeriCredit Corp.*		1,220		9,321
SVB Financial Group*		340		8,918
Unitrin, Inc.		510		8,129
Webster Financial Corp.		550		7,579
PacWest Bancorp		260		6,994
Cousins Properties, Inc.		460		6,371
Equity One, Inc.		340		6,018
Colonial BancGroup, Inc.		2,120		4,388
Horace Mann Educators Corp.		410		3,768
The PMI Group, Inc.		730		1,424
Total Financials				1,463,168
INDUSTRIALS 7.6%
Roper Industries, Inc.		940		40,805
Quanta Services, Inc.*		2,060		40,788
URS Corp.*		870		35,470
AMETEK, Inc.		1,120		33,835
Alliant Techsystems, Inc.*		340		29,158
Manpower, Inc.		820		27,872
Donaldson Company		800		26,920
Waste Connections, Inc.*		830		26,203
Joy Global, Inc.		1,130		25,866
KBR, Inc.		1,690		25,688
Pentair, Inc.		1,030		24,380
Harsco Corp.		870		24,082
FTI Consulting, Inc.*		530		23,680
SPX Corp.		570		23,114
Lincoln Electric Holdings, Inc.		450		22,919
AGCO Corp.*		960		22,646
J.B. Hunt Transport Services, Inc.		860		22,592
Corrections Corporation of America*		1,310		21,432
IDEX Corp.		860		20,769
Wabtec Corp.		510		20,273
Hubbell, Inc. — Class B		590		19,281
Kansas City Southern*		950		18,098
Copart, Inc.*		660		17,945

48    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Shaw Group, Inc.*		870	$	17,809
Timken Co.		890		17,471
MSC Industrial Direct Co.		470		17,310
Terex Corp.*		990		17,147
Kennametal, Inc.		760		16,864
GATX Corp.		510		15,795
Granite Construction, Inc.		340		14,936
Graco, Inc.		620		14,713
Bucyrus International, Inc.		780		14,446
Thomas & Betts Corporation*		580		13,932
JetBlue Airways Corp.*		1,916		13,604
Clean Harbors, Inc.*		210		13,322
Carlisle Companies, Inc.		640		13,248
Woodward Governor Co.		570		13,121
Trinity Industries, Inc.		830		13,081
Con-way Inc.		480		12,768
Nordson Corp.		360		11,624
Brink’s Co.		430		11,558
Alaska Air Group, Inc.*		380		11,115
Alexander & Baldwin, Inc.		430		10,776
Crane Co.		510		8,792
BE Aerospace, Inc.*		1,040		7,998
Corporate Executive Board Co.		360		7,942
Deluxe Corp.		530		7,929
Werner Enterprises, Inc.		450		7,803
Navigant Consulting, Inc.*		490		7,776
Rollins, Inc.		430		7,774
Mine Safety Appliances Co.		310		7,412
MPS Group, Inc.*		970		7,304
Herman Miller, Inc.		560		7,297
HNI Corp.		460		7,286
Oshkosh Corp.		780		6,934
United Rentals, Inc.*		630		5,746
AirTran Holdings, Inc.*		1,230		5,461
Korn/Ferry International, Inc.*		470		5,367
Federal Signal Corp.		500		4,105
Kelly Services, Inc. — Class A		290		3,773
Dycom Industries, Inc.*		410		3,370
YRC Worldwide, Inc.*		620		1,779
Total Industrials				1,000,304
CONSUMER DISCRETIONARY 7.4%
O’Reilly Automotive, Inc.*		1,410		43,343
Ross Stores, Inc.		1,350		40,135
Dollar Tree, Inc.*		950		39,710
DeVry, Inc.		640		36,742
Advance Auto Parts, Inc.		990		33,313
Strayer Education, Inc.		150		32,161
ITT Educational Services, Inc.*		330		31,343
priceline.com, Inc.*		420		30,933
Toll Brothers, Inc.*		1,360		29,145
NVR, Inc.*		60		27,375
BorgWarner, Inc.		1,210		26,342
Mohawk Industries, Inc.*		590		25,352
Petsmart, Inc.		1,330		24,538

			MARKET
	SHARES		VALUE
Wendy’s/Arby’s Group, Inc. — Class A		4,370	$	21,588
Chipotle Mexican Grill, Inc. — Class A*		340		21,073
DreamWorks Animation SKG, Inc. — Class A*		810		20,461
American Eagle Outfitters, Inc.		2,160		20,218
CarMax, Inc.*		2,300		18,124
Urban Outfitters, Inc.*		1,190		17,826
LKQ Corp.*		1,470		17,140
John Wiley & Sons, Inc. — Class A		450		16,011
Marvel Entertainment, Inc.*		510		15,682
Tupperware Brands Corp.		650		14,755
Corinthian Colleges, Inc.*		890		14,569
Career Education Corp.*		770		13,814
Service Corporation International		2,670		13,270
Netflix, Inc.*		440		13,152
Gentex Corp.		1,460		12,892
Dick’s Sporting Goods, Inc.*		890		12,558
Hanesbrands, Inc.*		980		12,495
Rent-A-Center, Inc.*		700		12,355
Scientific Games Corp. — Class A*		680		11,927
Foot Locker, Inc.		1,620		11,891
Matthews International Corp. — Class A		320		11,738
M.D.C. Holdings, Inc.		380		11,514
Aeropostale, Inc.*		700		11,270
Brinker International, Inc.		1,060		11,172
Phillips-Van Heusen Corp.		540		10,870
Lamar Advertising Company*		790		9,922
Guess?, Inc.		630		9,670
The Warnaco Group, Inc.*		490		9,619
Brink’s Home Security Holdings, Inc.*		430		9,426
Under Armour, Inc.*		380		9,059
International Speedway Corp. — Class A		290		8,332
Ryland Group, Inc.		450		7,952
Collective Brands, Inc.*		670		7,852
Chico’s FAS, Inc.*		1,850		7,733
Williams-Sonoma, Inc.		910		7,153
J. Crew Group, Inc.*		540		6,588
Regis Corp.		450		6,539
Bob Evans Farms, Inc.		320		6,538
Saks, Inc.*		1,490		6,526
Callaway Golf Co.		680		6,317
Cheesecake Factory, Inc.*		620		6,262
Sotheby’s		700		6,223
Barnes & Noble, Inc.		390		5,850
Timberland Co. — Class A*		480		5,544
99 Cents Only Stores*		490		5,356
Thor Industries, Inc.		370		4,877

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    49

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Life Time Fitness, Inc.*		370	$	4,792
Scholastic Corp.		280		3,802
American Greetings Corp. — Class A		470		3,558
AnnTaylor Stores Corp.*		600		3,462
Boyd Gaming Corp.		600		2,838
Harte-Hanks, Inc.		400		2,496
ArvinMeritor, Inc.		770		2,195
Blyth, Inc.		250		1,960
Modine Manufacturing Co.		340		1,656
Belo Corp. — Class A		920		1,435
Coldwater Creek, Inc.*		500		1,425
Pacific Sunwear of California, Inc.*		690		1,097
Furniture Brands International, Inc.		430		950
Hovnanian Enterprises, Inc. — Class A*		530		912
Total Consumer Discretionary				974,713
INFORMATION TECHNOLOGY 6.6%
SAIC, Inc.*		2,120		41,298
Alliance Data Systems Corp.*		670		31,175
Avnet, Inc.*		1,570		28,590
Synopsys, Inc.*		1,510		27,965
Lam Research Corp.*		1,310		27,877
Global Payments, Inc.		840		27,544
Trimble Navigation Ltd.*		1,250		27,012
Western Digital Corp.*		2,320		26,564
ANSYS, Inc.*		940		26,217
Lender Processing Services, Inc.		880		25,916
Mettler-Toledo International, Inc.*		350		23,590
Arrow Electronics, Inc.*		1,250		23,550
NCR Corp.*		1,650		23,331
Ingram Micro, Inc. — Class A*		1,720		23,031
Sybase, Inc.*		850		21,054
FactSet Research Systems Inc.		440		19,466
Diebold, Inc.		690		19,382
F5 Networks, Inc.*		830		18,974
Broadridge Financial Solutions, Inc.		1,480		18,559
Jack Henry & Associates, Inc.		880		17,081
DST Systems, Inc.*		430		16,331
NeuStar, Inc.*		820		15,687
Parametric Technology Corp.*		1,210		15,306
Metavante Technologies, Inc.*		940		15,143
Atmel Corp.*		4,680		14,648
National Instruments Corp.		600		14,616
Cree, Inc.*		920		14,600
Zebra Technologies Corp. — Class A*		660		13,372
Mantech International Corp. — Class A*		220		11,922
Silicon Laboratories, Inc.*		480		11,894
Intersil Corp. — Class A		1,280		11,763

			MARKET
	SHARES		VALUE
Polycom, Inc.*		870	$	11,754
CommScope, Inc.*		740		11,500
Gartner, Inc. — Class A*		620		11,055
Macrovision Solutions Corp.*		870		11,005
International Rectifier Corp.*		760		10,260
Cadence Design Systems, Inc.*		2,720		9,955
Integrated Device Technology, Inc.*		1,770		9,930
3Com Corp.*		4,250		9,690
Digital River, Inc.*		390		9,672
Tech Data Corp.*		520		9,277
Fair Isaac Corp.		510		8,599
ADTRAN, Inc.		570		8,482
Avocent Corp.*		470		8,418
SRA International, Inc. — Class A*		440		7,590
Semtech Corp.*		630		7,100
Plantronics, Inc.		510		6,732
ADC Telecommunications, Inc.*		1,230		6,728
Vishay Intertechnology, Inc.*		1,950		6,669
Wind River Systems, Inc.*		710		6,411
Fairchild Semiconductor International, Inc.*		1,300		6,357
ValueClick, Inc.*		910		6,224
Acxiom Corp.		710		5,758
ACI Worldwide, Inc.*		360		5,724
Mentor Graphics Corp.*		970		5,015
Imation Corp.		320		4,342
Palm, Inc.*		1,150		3,530
Advent Software, Inc.*		170		3,395
RF Micro Devices, Inc.*		2,750		2,145
Total Information Technology				866,775
HEALTH CARE 6.0%
Vertex Pharmaceuticals, Inc.*		1,570		47,697
Pharmaceutical Product Development, Inc.		1,230		35,682
Hologic, Inc.*		2,680		35,028
Henry Schein, Inc.*		930		34,122
Edwards Lifesciences Corp.*		580		31,871
Endo Pharmaceuticals Holdings, Inc.*		1,220		31,574
Covance, Inc.*		660		30,380
Omnicare, Inc.		1,090		30,259
ResMed, Inc.*		790		29,609
Beckman Coulter, Inc.		660		29,000
Cerner Corp.*		710		27,300
Perrigo Co.		810		26,171
Techne Corp.		400		25,808
Gen-Probe, Inc.*		570		24,419
IDEXX Laboratories, Inc.*		620		22,370
Teleflex, Inc.		420		21,042
Lincare Holdings, Inc.*		780		21,005
Universal Health Services, Inc. — Class B		530		19,912

50    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Valeant Pharmaceuticals
International*		850	$	19,465
Thoratec Corp.*		590		19,169
Charles River Laboratories International, Inc.*		710		18,602
VCA Antech, Inc.*		880		17,494
Psychiatric Solutions, Inc.*		580		16,153
Bio-Rad Laboratories, Inc. — Class A*		200		15,062
United Therapeutics Corp.*		240		15,012
Masimo Corp.*		500		14,915
Steris Corp.		620		14,812
Community Health Systems, Inc.*		980		14,288
LifePoint Hospitals, Inc.*		560		12,790
Sepracor, Inc.*		1,140		12,517
Health Net, Inc.*		1,080		11,761
Kinetic Concepts, Inc.*		590		11,316
Hill-Rom Holdings, Inc.		650		10,699
Varian, Inc.*		300		10,053
Medicis Pharmaceutical Corp. — Class A		590		8,201
WellCare Health Plans, Inc.*		440		5,658
Health Management Associates, Inc. — Class A*		2,550		4,565
Kindred Healthcare, Inc.*		310		4,036
Advanced Medical Optics, Inc.*		540		3,569
Affymetrix, Inc.*		730		2,183
Total Health Care				785,569
UTILITIES 4.3%
MDU Resources Group, Inc.		1,920		41,434
NSTAR		1,120		40,869
Northeast Utilities		1,630		39,218
Puget Energy, Inc.		1,360		37,087
Alliant Energy Corp.		1,150		33,557
Oneok, Inc.		1,090		31,741
Aqua America, Inc.		1,410		29,032
DPL, Inc.		1,210		27,636
UGI Corp.		1,130		27,595
National Fuel Gas Co.		830		26,004
AGL Resources, Inc.		800		25,080
OGE Energy Corp.		970		25,007
NV Energy, Inc.		2,450		24,230
Great Plains Energy, Inc.		1,240		23,969
Westar Energy, Inc.		1,130		23,176
Energen Corp.		750		21,997
Vectren Corp.		850		21,258
Hawaiian Electric Industries, Inc.		940		20,812
WGL Holdings, Inc.		520		16,999
IDACORP, Inc.		480		14,136
Black Hills Corp.		400		10,784
PNM Resources, Inc.		900		9,072
Total Utilities				570,693

			MARKET
	SHARES		VALUE
MATERIALS 3.6%
Martin Marietta Materials, Inc.		430	$	41,744
FMC Corp.		770		34,442
Airgas, Inc.		850		33,141
Cliffs Natural Resources Inc		1,190		30,476
Lubrizol Corp.		700		25,473
AptarGroup, Inc.		710		25,020
Sonoco Products Co.		1,043		24,156
Albemarle Corp.		950		21,185
Steel Dynamics, Inc.		1,690		18,894
Valspar Corp.		1,040		18,814
RPM International, Inc.		1,350		17,942
Terra Industries, Inc.		1,070		17,837
Olin Corp.		798		14,428
Packaging Corporation of America		1,070		14,402
Commercial Metals Co.		1,190		14,125
Scotts Miracle-Gro Co. — Class A		460		13,671
Reliance Steel & Aluminum Co.		670		13,360
Sensient Technologies Corp.		510		12,179
Greif, Inc. — Class A		360		12,035
Cabot Corp.		680		10,404
Cytec Industries, Inc.		490		10,398
Carpenter Technology Corp.		460		9,448
Minerals Technologies, Inc.		200		8,180
Ashland, Inc.		690		7,252
Worthington Industries, Inc.		630		6,943
Temple-Inland, Inc.		1,110		5,328
Chemtura Corp.		2,540		3,556
Ferro Corp.		460		3,243
Louisiana-Pacific Corp.		950		1,482
Total Materials				469,558
ENERGY 3.4%
FMC Technologies, Inc.*		1,310		31,217
Pride International, Inc.*		1,810		28,924
Denbury Resources, Inc.*		2,580		28,173
Newfield Exploration Co.*		1,380		27,255
Plains Exploration & Production Co.*		1,120		26,029
Helmerich & Payne, Inc.		1,100		25,025
Arch Coal, Inc.		1,490		24,272
Cimarex Energy Co.		870		23,298
Comstock Resources, Inc.*		480		22,680
Tidewater, Inc.		540		21,746
Patterson-UTI Energy, Inc.		1,620		18,646
Southern Union Co.		1,300		16,952
Forest Oil Corp.*		1,020		16,820
Oceaneering International, Inc.*		570		16,610
Exterran Holdings, Inc.*		680		14,484
Encore Acquisition Co.*		550		14,036
Frontier Oil Corp.		1,090		13,767
Unit Corp.*		490		13,093
Superior Energy Services*		810		12,903

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    51

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     MID-CAP 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Overseas Shipholding
Group, Inc.		260	$	10,949
Mariner Energy, Inc.*		930		9,486
Bill Barrett Corp.*		390		8,241
Helix Energy Solutions Group, Inc.*		960		6,950
Quicksilver Resources, Inc.*		1,170		6,517
Patriot Coal Corp.*		660		4,125
Total Energy				442,198
CONSUMER STAPLES 2.4%
Church & Dwight Co., Inc.		730		40,968
Ralcorp Holdings, Inc.*		590		34,456
Energizer Holdings, Inc.*		610		33,025
Hansen Natural Corp.*		770		25,818
Hormel Foods Corp.		730		22,688
Corn Products International, Inc.		780		22,503
Alberto-Culver Co.		890		21,814
BJ’s Wholesale Club, Inc.*		610		20,899
Flowers Foods, Inc.		820		19,975
Smithfield Foods, Inc.*		1,240		17,447
PepsiAmericas, Inc.		600		12,216
Ruddick Corp.		410		11,336
NBTY, Inc.*		570		8,921
Universal Corp.		260		7,766
Lancaster Colony Corp.		210		7,203
Tootsie Roll Industries, Inc.		270		6,915
Total Consumer Staples				313,950
TELECOMMUNICATION SERVICES 0.3%
Telephone & Data Systems, Inc.		1,110		35,243
Cincinnati Bell, Inc.*		2,410		4,651
Total Telecommunication Services				39,894
Total Common Stocks (Cost $9,098,345)				6,926,822
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 28.0%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	945,878		945,878
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		945,878		945,878

	FACE		MARKET
	AMOUNT		VALUE
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09	$	945,878	$	945,878
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		853,723		853,723
Total Repurchase Agreements (Cost $3,691,357)				3,691,357
Total Investments 80.7% (Cost $12,789,702)			$	10,618,179
Other Assets in Excess of Liabilities – 19.3%			$	2,532,175
Net Assets – 100.0%			$	13,150,354
			Unrealized
		Contracts		Gain
FUTURES CONTRACTS
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $7,854,210)		147	$	352,821
		UNITS
EQUITY INDEX SWAP AGREEMENTS
Credit Suisse Capital, LLC March 2009 S&P MidCap 400 Index Swap, Terminating 03/26/09** (Notional Market Value $4,359,817)		8,100	$	139,176
Goldman Sachs International January 2009 MidCap 400 Index Swap, Terminating 01/08/09** (Notional Market Value $511,333)		950		20,732
(Total Notional Market Value $4,871,150)			$	159,908

*	Non-Income Producing Security.
**	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
	REIT — Real Estate Investment Trust.

52    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     INVERSE MID-CAP STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 20.8%
Farmer Mac* 0.07% due 01/07/09	$	500,000	$	499,995
Federal Home Loan Bank* 0.20% due 01/06/09		500,000		499,989
Total Federal Agency Discount Notes (Cost $999,984)				999,984
REPURCHASE AGREEMENTS† 71.2%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		878,564		878,564
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		878,564		878,564
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		878,564		878,564
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		792,968		792,968
Total Repurchase Agreements (Cost $3,428,660)				3,428,660
Total Investments 92.0% (Cost $4,428,644)			$	4,428,644
Other Assets in Excess of Liabilities — 8.0%			$	383,898
Net Assets — 100.0%			$	4,812,542
			Unrealized
		Contracts		Loss
FUTURES CONTRACTS SOLD SHORT
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $3,098,940)		58	$	(104,331	)

			UNREALIZED
	UNITS		LOSS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT
Goldman Sachs International January 2009 S&P MidCap 400 Index Swap, Terminating 01/08/09** (Notional Market Value $511,333)		950	$	(20,763	)
Credit Suisse Capital, LLC March 2009 S&P MidCap 400 Index Swap, Terminating 03/26/09** (Notional Market Value $1,182,352)		2,197		(55,028	)
(Total Notional Market Value $1,693,685)			$	(75,791	)

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    53

SCHEDULE OF INVESTMENTS

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 45.9%
FINANCIALS 10.7%
Realty Income Corp.		220	$	5,093
Aspen Insurance Holdings Ltd.		180		4,365
Senior Housing Properties Trust		240		4,301
First Niagara Financial Group, Inc.		248		4,010
Highwoods Properties, Inc.		136		3,721
Validus Holdings Ltd.		140		3,662
Platinum Underwriters Holdings Ltd.		100		3,608
ProAssurance Corp.*		67		3,536
FirstMerit Corp.		170		3,500
Montpelier Re Holdings Ltd.		196		3,291
IPC Holdings Ltd.		110		3,289
UMB Financial Corp.		66		3,243
Washington Real Estate Investment Trust		113		3,198
Knight Capital Group, Inc. — Class A*		196		3,165
Westamerica Bancorporation		60		3,069
NewAlliance Bancshares, Inc.		230		3,029
Healthcare Realty Trust, Inc.		128		3,005
National Retail Properties, Inc.		169		2,905
Susquehanna Bancshares, Inc.		180		2,864
Corporate Office Properties Trust SBI		92		2,824
Apollo Investment Corp.		300		2,793
Home Properties, Inc.		68		2,761
Omega Healthcare Investors, Inc.		170		2,715
United Bankshares, Inc.		80		2,658
Tanger Factory Outlet Centers, Inc.		70		2,633
Cathay General Bancorp		110		2,612
Odyssey Re Holdings Corp.		50		2,590
Selective Insurance Group, Inc.		110		2,522
Greenhill & Company, Inc.		36		2,512
Argo Group International Holdings Ltd.*		74		2,510
Zenith National Insurance Corp.		79		2,494
MFA Mortgage Investments, Inc.		420		2,474
Old National Bancorp		136		2,470
National Penn Bancshares, Inc.		170		2,467
RLI Corp.		40		2,446
Stifel Financial Corp.*		53		2,430
International Bancshares Corp.		110		2,401
FNB Corp.		180		2,376
Trustmark Corp.		110		2,375
Prosperity Bancshares, Inc.		80		2,367
Hancock Holding Co.		50		2,273
East-West Bancorp, Inc.		140		2,236
Mid-America Apartment Communities, Inc.		60		2,230
First Financial Bankshares, Inc.		40		2,208
Glacier Bancorp, Inc.		110		2,092
Max Capital Group Ltd.		116		2,053

			MARKET
	SHARES		VALUE
Signature Bank*		71	$	2,037
Entertainment Properties Trust		68		2,026
First Midwest Bancorp, Inc.		100		1,997
Provident Financial Services, Inc.		130		1,989
First Commonwealth Financial Corp.		160		1,981
Potlatch Corp.		76		1,977
MB Financial Corp.		70		1,956
BioMed Realty Trust, Inc.		166		1,946
Franklin Street Properties Corp., Inc.		130		1,917
NBT Bancorp, Inc.		68		1,901
Umpqua Holding Corp.		130		1,881
DCT Industrial Trust, Inc.		370		1,872
American Campus Communities, Inc.		90		1,843
Sovran Self Storage, Inc.		50		1,800
Employers Holdings, Inc.		109		1,798
PrivateBancorp, Inc.		55		1,785
S&T Bancorp, Inc.		50		1,775
Extra Space Storage, Inc.		170		1,754
Eastgroup Properties, Inc.		48		1,708
First Bancorp Puerto Rico		150		1,671
CVB Financial Corp.		140		1,666
Pacific Capital Bancorp		98		1,654
UCBH Holdings, Inc.		240		1,651
Cash America International, Inc.		60		1,641
WesBanco, Inc.		60		1,633
Delphi Financial Group,Inc. — Class A		88		1,623
Interactive Brokers Group, Inc. — Class A*		90		1,610
Community Bank System, Inc.		66		1,610
SVB Financial Group*		60		1,574
Inland Real Estate Corp.		120		1,558
Equity Lifestyle Properties, Inc.		40		1,534
TrustCo Bank Corp.		160		1,522
PHH Corp.*		118		1,502
Pinnacle Financial Partners, Inc.*		50		1,490
Post Properties, Inc.		90		1,485
Navigators Group, Inc.*		27		1,483
Piper Jaffray Companies, Inc.*		37		1,471
IBERIABANK Corp.		30		1,440
United Fire & Casualty Co.		46		1,429
Infinity Property & Casualty Corp.		30		1,402
Chemical Financial Corp.		50		1,394
KBW, Inc.*		60		1,380
National Health Investors, Inc.		50		1,371
PacWest Bancorp		50		1,345
PS Business Parks, Inc.		30		1,340
Assured Guaranty Ltd.		117		1,334
Ares Capital Corp.		210		1,329
Park National Corp.		18		1,291
Investors Real Estate Trust		120		1,285
Capstead Mortgage Corp.		116		1,249

54    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Brookline Bancorp, Inc.		116	$	1,235
Cousins Properties, Inc.		89		1,233
United Community Banks, Inc.		91		1,232
Ezcorp, Inc. — Class A*		80		1,217
Investors Bancorp, Inc.*		90		1,209
Equity One, Inc.		68		1,204
optionsXpress Holdings, Inc.		90		1,202
Financial Federal Corp.		50		1,163
Anworth Mortgage Asset Corp.		180		1,157
Safety Insurance Group, Inc.		30		1,142
Bank Mutual Corp.		98		1,131
Tower Group, Inc.		40		1,128
Community Trust Bancorp, Inc.		30		1,102
Provident New York Bancorp		88		1,091
Capital Southwest Corp.		10		1,082
Berkshire Hills Bancorp, Inc.		35		1,080
Bancfirst Corp.		20		1,058
Redwood Trust, Inc.		70		1,044
Harleysville Group, Inc.		30		1,042
Wintrust Financial Corp.		50		1,028
Portfolio Recovery Associates, Inc.*		30		1,015
LTC Properties, Inc.		50		1,014
DiamondRock Hospitality Co.		199		1,009
City Holding Co.		29		1,009
Acadia Realty Trust		70		999
TowneBank		40		992
First Financial Bancorp		80		991
Hilltop Holdings, Inc.*		100		974
Sterling Bancshares, Inc.		160		973
LaSalle Hotel Properties		88		972
Univest Corp. of Pennsylvania		30		964
American Physicians Capital, Inc.		20		962
Harleysville National Corp.		66		953
Stewart Information Services Corp.		40		940
Sterling Savings Bank		106		933
Universal Health Realty Income Trust		28		921
First Busey Corp.		50		912
SWS Group, Inc.		48		910
State Auto Financial Corp.		30		902
Castlepoint Holdings Ltd.		66		895
Bank of the Ozarks, Inc.		30		889
First Merchants Corp.		40		888
Simmons First National Corp.		30		884
Colonial BancGroup, Inc.		426		882
FPIC Insurance Group, Inc.*		20		876
Banco Latinoamericano de Exportaciones SA		60		862
Medical Properties Trust Inc.		136		858
Northwest Bancorp, Inc.		40		855
StellarOne Corp.		50		845
Getty Realty Corp.		40		842
American Equity Investment Life Holding Co.		120		840
Colonial Properties Trust		100		833

			MARKET
	SHARES		VALUE
Horace Mann Educators Corp.		90	$	827
SY Bancorp, Inc.		30		825
Boston Private Financial Holdings, Inc.		120		821
First Financial Corp.		20		820
Capital City Bank Group, Inc.		30		817
Home Bancshares, Inc.		30		808
Citizens Banking Corp.		271		808
Pico Holdings, Inc.*		30		797
Saul Centers, Inc.		20		790
Ambac Financial Group, Inc.		606		788
Beneficial Mutual Bancorp, Inc.*		70		787
Independent Bank Corp.		30		785
Phoenix Companies, Inc.		240		785
Greenlight Capital Re Ltd. — Class A*		60		779
Citizens, Inc.*		80		776
Texas Capital Bancshares, Inc.*		58		775
Meadowbrook Insurance Group, Inc.		120		773
First Cash Financial Services, Inc.*		40		762
Forestar Real Estate Group, Inc.*		80		762
Amerisafe, Inc.*		37		760
Triko Bancshares		30		749
Union Bankshares Corp.		30		744
Ocwen Financial Corp.*		80		734
Crawford & Co. — Class B*		50		727
Suffolk Bancorp		20		719
Prospect Capital Corp.		60		718
Lakeland Financial Corp.		30		715
1st Source Corp.		30		709
Southside Bancshares, Inc.		30		705
Westfield Financial, Inc.		68		702
CNA Surety Corp.*		36		691
SCBT Financial Corp.		20		690
Riskmetrics Group, Inc.*		46		685
Sunstone Hotel Investors, Inc.		110		681
First Industrial Realty Trust, Inc.		89		672
Provident Bankshares Corp.		68		657
Sandy Spring Bancorp, Inc.		30		655
Dime Community Bancshares		49		652
South Financial Group, Inc.		150		648
Renasant Corp.		38		647
eHealth, Inc.*		48		637
Urstadt Biddle Properties, Inc.		40		637
Radian Group, Inc.		170		626
thinkorswim Group, Inc.*		110		618
Heartland Financial USA, Inc.		30		618
United Financial Bancorp, Inc.		40		606
Danvers Bancorp, Inc.		45		602
Flushing Financial Corp.		50		598
First Potomac Realty Trust		64		595
World Acceptance Corp.*		30		593
First Community Bancshares, Inc.		17		593
Central Pacific Financial Corp.		59		592

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    55

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Enstar Group*		10	$	591
BancTrust Financial Group, Inc.		40		590
Tompkins Financial Corp.		10		579
MainSource Financial Group, Inc.		37		573
Nelnet, Inc. — Class A		40		573
SeaBright Insurance Holdings, Inc.*		48		564
Compass Diversified Trust		50		562
Hercules Technology Growth Capital, Inc.		70		554
First Bancorp		30		550
MVC Capital, Inc.		50		548
Flagstone Reinsurance Holdings		56		547
Republic Bancorp, Inc.		20		544
Parkway Properties, Inc.		30		540
Lexington Realty Trust		108		540
MarketAxess Holdings, Inc.*		66		539
Cedar Shopping Centers, Inc.		76		538
Sterling Bancorp		38		533
Peapack Gladstone Financial Corp.		20		533
Hatteras Financial Corp.		20		532
Nara Bancorp, Inc.		54		531
ESSA Bancorp, Inc.		37		523
Pennsylvania Real Estate Investment Trust		70		521
Dollar Financial Corp.*		50		515
United America Indemnity Ltd. — Class A*		40		512
Kearny Financial Corp.		40		512
LaBranche & Company, Inc.*		106		508
Oritani Financial Corp.*		30		505
Arrow Financial Corp.		20		503
GFI Group, Inc.		140		496
Tejon Ranch Co. De*		20		495
Presidential Life Corp.		50		494
GAMCO Investors, Inc. — Class A		18		492
West Bancorporation, Inc.		40		490
U-Store-It Trust		110		489
Camden National Corp.		18		486
PMA Capital Corp.*		68		481
WSFS Financial Corp.		10		480
Shore Bancshares, Inc.		20		480
Aircastle Ltd.		100		478
NorthStar Realty Finance Corp.		120		469
First Financial Northwest, Inc.		50		467
FBL Financial Group, Inc. — Class A		30		463
Abington Bancorp, Inc.		49		453
Lakeland Bancorp, Inc.		40		450
Northfield Bancorp, Inc.		40		450
Columbia Banking Systems, Inc.		37		441
Cohen & Steers, Inc.		40		440
TradeStation Group, Inc.*		68		439
Life Partners Holdings, Inc.		10		436
Frontier Financial Corp.		100		436
Kansas City Life Insurance Co.		10		433

			MARKET
	SHARES		VALUE
First Mercury Financial Corp.*		30	$	428
Sun Communities, Inc.		30		420
Sierra Bancorp		20		420
NGP Capital Resources Co.		50		418
BankFinancial Corp.		40		408
Green Bankshares, Inc.		30		406
First Financial Holdings, Inc.		20		405
Western Alliance Bancorp, Inc.*		40		404
First Bancorp, Inc.		20		398
Citizens & Northern Corp.		20		395
Washington Trust Bancorp, Inc.		20		395
CoBiz Financial, Inc.		40		390
Southwest Bancorp, Inc.		30		389
Peoples Bancorp, Inc.		20		383
Consolidated-Tomoka Land Co.		10		382
Baldwind & Lyons, Inc. — Class B		20		364
Wilshire Bancorp, Inc.		40		363
American Capital Agency Corp.		17		363
Agree Realty Corp.		20		363
Ameris Bancorp		30		355
Amtrust Financial Services, Inc.		30		348
Old Second Bancorp, Inc.		30		348
Cascade Bancorp.		50		337
Donegal Group, Inc. — Class A		20		335
Oceanfirst Financial Corp.		20		332
The PMI Group, Inc.		170		332
RAIT Financial Trust		126		328
Gladstone Capital Corp.		40		324
Maiden Holdings Ltd.		100		313
Mission West Properties		40		306
Education Realty Trust, Inc.		58		303
Oriental Financial Group		50		303
Hersha Hospitality Trust		100		300
Pacific Continental Corp.		20		299
Calamos Asset Management, Inc. — Class A		40		296
BlackRock Kelso Capital Corp.		30		296
State Bancorp, Inc.		30		292
FBR Capital Markets Corp.*		60		292
Anthracite Capital, Inc.		130		290
Penson Worldwide Company, Inc.*		38		290
ViewPoint Financial Group		18		289
Ashford Hospitality Trust, Inc.		250		288
Financial Institutions, Inc.		20		287
Yadkin Valley Financial Corp.		20		285
Banner Corp.		30		282
Cogdell Spencer, Inc.		30		281
Monmouth Real Estate Investment Corp. — Class A		40		280
Rockville Financial, Inc.		20		279
Enterprise Financial Services Corp.		18		274
Associated Estates Realty Corp.		30		274
Smithtown Bancorp, Inc.		17		273
Centerstate Banks of Florida, Inc.		16		272
NASB Financial, Inc.		10		270

56    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Ames National Corp.		10	$	265
Avatar Holdings Inc.*		10		265
American Safety Insurance Holdings Ltd.*		20		264
Strategic Hotels & Resorts, Inc.		156		262
Cardinal Financial Corp.		46		262
EMC Insurance Group, Inc.		10		257
Roma Financial Corp.		20		252
First South Bancorp, Inc.		20		251
Evercore Partners, Inc. — Class A		20		250
Premierwest Bancorp		37		248
Farmers Capital Bank Corp.		10		244
Chimera Investment Corp.		70		242
Pennsylvania Commerce Bancorp, Inc.*		9		240
Sanders Morris Harris Group Inc.		40		240
FelCor Lodging Trust, Inc.		130		239
Clifton Savings Bancorp, Inc.		20		237
Capitol Bancorp, Ltd.		30		234
National Financial Partners Corp.		76		231
Harris & Harris Group, Inc.*		58		229
Medallion Financial Corp.		30		229
Gladstone Investment Corp.		46		226
Heritage Commerce Corp.		20		225
Glimcher Realty Trust		80		225
Sun Bancorp, Inc.*		30		225
Kite Realty Group Trust		40		222
FCStone Group, Inc.*		50		222
Guaranty Bancorp*		110		220
Winthrop Realty Trust		20		217
Encore Capital Group, Inc.*		30		216
Care Investment Trust, Inc.		27		210
Guaranty Financial Group, Inc.*		80		209
United Security Bancshares		18		208
Bryn Mawr Bank Corp.		10		201
NewStar Financial, Inc.*		50		200
Westwood Holdings Group, Inc.		7		199
Seacoast Banking Corporation of Florida		30		198
West Coast Bancorp		30		198
First Marblehead Corp.*		150		194
Resource Capital Corp.		50		192
NYMAGIC, Inc.		10		191
Thomas Weisel Partners Group, Inc.*		40		189
Ramco-Gershenson Properties Trust		30		185
Meridian Interstate Bancorp, Inc.*		20		185
BGC Partners, Inc. — Class A		66		182
National Interstate Corp.		10		179
One Liberty Properties, Inc.		20		176
Advance America Cash Advance Centers, Inc.		90		170
Advanta Corp.		80		167
CapLease, Inc.		96		166

			MARKET
	SHARES		VALUE
Hanmi Financial Corp.		80	$	165
Ladenburg Thalmann Financial Services, Inc.*		227		163
City Bank		30		156
CompuCredit Corp.*		28		155
Asset Acceptance Capital Corp.*		30		153
First Place Financial Corp.		40		153
Epoch Holding Corp.		20		152
Fifth Street Finance Corp.		20		151
Kayne Anderson Energy Development Co.		20		150
US Global Investors, Inc. — Class A		30		147
Patriot Capital Funding, Inc.		40		146
Amcore Financial, Inc.		40		145
PennantPark Investment Corp.		40		144
Broadpoint Securities Group, Inc.*		48		143
Credit Acceptance Corp.*		10		137
Capital Trust, Inc. — Class A		38		137
Maui Land & Pineapple Company, Inc.*		10		134
Kohlberg Capital Corp.		36		131
First Acceptance Corp.*		45		131
Thomas Properties Group, Inc.		50		130
Santander BanCorp		10		125
Stratus Properties, Inc.*		10		125
Gramercy Capital Corp.		90		115
Meruelo Maddux Properties, Inc.*		90		112
Maguire Properties, Inc.*		76		111
MCG Capital Corp.		156		111
Anchor BanCorp Wisconsin, Inc.		40		110
Encore Bancshares, Inc.*		10		110
Fox Chase Bancorp, Inc.*		10		110
Home Federal Bancorp, Inc.		10		107
Brooklyn Federal Bancorp, Inc.		7		98
Newcastle Investment Corp.		110		92
Arbor Realty Trust, Inc.		30		89
Hallmark Financial Services, Inc.*		10		88
International Assets Holding Corp.*		10		86
Grubb & Ellis Co.		69		86
Corus Bankshares, Inc.		76		84
Flagstar Bancorp, Inc.*		106		75
Midwest Banc Holdings, Inc.		50		70
Resource America, Inc. — Class A		17		68
Doral Financial Corp.*		9		68
Federal Agricultural Mortgage Corp.		19		67
DuPont Fabros Technology, Inc.		28		58
Primus Guaranty Ltd.*		50		57
United Community Financial Corp.		61		55
Friedman Billings Ramsey Group, Inc. — Class A*		310		53
FirstFed Financial Corp.*		30		53
Integra Bank Corp.		37		51
JER Investors Trust, Inc.		48		45

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    57

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Pzena Investment Management,
Inc. — Class A		10	$	42
Cardtronics, Inc.*		30		39
Independence Holding Co.		10		36
Waterstone Financial, Inc.*		10		34
Ampal American Israel — Class A*		40		23
FX Real Estate and Entertainment, Inc.*		20		3
Total Financials				364,682
INDUSTRIALS 7.8%
Waste Connections, Inc.*		171		5,398
Watson Wyatt & Company Holdings		90		4,304
Wabtec Corp.		98		3,896
Clarcor, Inc.		110		3,650
Curtiss-Wright Corp.		105		3,506
Teledyne Technologies, Inc.*		76		3,386
Moog, Inc. — Class A*		90		3,291
Acuity Brands, Inc.		90		3,142
EMCOR Group, Inc.*		140		3,140
Granite Construction, Inc.		70		3,075
Tetra Tech, Inc.*		126		3,043
Woodward Governor Co.		130		2,993
UAL Corp.*		270		2,975
Brady Corp. — Class A		110		2,635
JetBlue Airways Corp.*		370		2,627
Regal-Beloit Corp.		68		2,583
Clean Harbors, Inc.*		40		2,538
Energy Conversion Devices, Inc.*		100		2,521
Perini Corp.*		106		2,478
ESCO Technologies, Inc.*		58		2,375
TransDigm Group, Inc.*		70		2,350
Orbital Sciences Corp.*		120		2,344
Alaska Air Group, Inc.*		80		2,340
Huron Consulting Group, Inc.*		40		2,291
SkyWest, Inc.		120		2,232
Simpson Manufacturing Company, Inc.		80		2,221
Actuant Corp. — Class A		116		2,206
Esterline Technologies Corp.*		58		2,198
Genesee & Wyoming, Inc. — Class A*		70		2,135
Nordson Corp.		66		2,131
HUB Group, Inc. — Class A*		80		2,122
Mueller Water Products, Inc. — Class A		250		2,100
GrafTech International Ltd.*		250		2,080
Kaydon Corp.		58		1,992
Mueller Industries, Inc.		78		1,956
Heico Corp.		50		1,942
Briggs & Stratton Corp.		110		1,935
Knight Transportation, Inc.		120		1,934
Watsco, Inc.		50		1,920
Geo Group, Inc.*		106		1,911
Belden, Inc.		90		1,879

			MARKET
	SHARES		VALUE
Otter Tail Power Co.		80	$	1,866
US Airways Group, Inc.*		240		1,855
Heartland Express, Inc.		116		1,828
Baldor Electric Co.		98		1,749
ABM Industries, Inc.		90		1,715
Old Dominion Freight Line, Inc.*		60		1,708
Applied Industrial Technologies, Inc.		90		1,703
Triumph Group, Inc.		40		1,698
United Stationers, Inc.*		50		1,675
Deluxe Corp.		110		1,646
Resources Connection, Inc.*		100		1,638
Rollins, Inc.		90		1,627
Navigant Consulting, Inc.*		100		1,587
Mine Safety Appliances Co.		66		1,578
Werner Enterprises, Inc.		89		1,543
Herman Miller, Inc.		116		1,511
MPS Group, Inc.*		200		1,506
Arkansas Best Corp.		50		1,506
Watts Industries, Inc. — Class A		60		1,498
American Science & Engineering, Inc.		20		1,479
Hexcel Corp.*		200		1,478
AAR Corp.*		80		1,473
Allegiant Travel Co.*		30		1,457
Forward Air Corp.		60		1,456
American Superconductor Corp.*		88		1,435
Healthcare Services Group		90		1,434
HNI Corp.		90		1,426
Franklin Electric Company, Inc.		50		1,406
Barnes Group, Inc.		96		1,392
SYKES Enterprises, Inc.*		70		1,338
CoStar Group, Inc.*		40		1,318
Ameron International Corp.		20		1,258
Astec Industries, Inc.*		40		1,253
Beacon Roofing Supply, Inc.*		88		1,221
Ceradyne, Inc.*		60		1,219
K-Tron International, Inc.*		15		1,199
Insituform Technologies, Inc. — Class A*		60		1,181
A.O. Smith Corp.		40		1,181
Korn/Ferry International, Inc.*		100		1,142
Team, Inc.*		40		1,108
Axsys Technologies, Inc.*		20		1,097
AirTran Holdings, Inc.*		246		1,092
Middleby Corp.*		40		1,091
General Maritime Corp.		100		1,080
Universal Forest Products, Inc.		40		1,076
Mcgrath Rentcorp		50		1,068
Circor International, Inc.		38		1,045
Mastec, Inc.*		90		1,042
Administaff, Inc.		48		1,041
RBC Bearings, Inc.*		50		1,014
Mobile Mini, Inc.*		70		1,009
Viad Corp.		40		990

58    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Evergreen Solar, Inc.*		310	$	989
Robbins & Myers, Inc.		60		970
Layne Christensen Co.*		40		960
II-VI, Inc.*		50		955
Gorman-Rupp Co.		30		934
Comfort Systems USA, Inc.		86		917
Tredegar Corp.		50		909
Kaman Corp. — Class A		50		907
Exponent, Inc.*		30		902
Knoll, Inc.		100		902
Lindsay Manufacturing Co.		28		890
Force Protection, Inc.*		146		873
Badger Meter, Inc.		30		871
Heidrick & Struggles International, Inc.		40		862
EnPro Industries, Inc.*		40		862
Northwest Pipe Co.*		20		852
TrueBlue, Inc.*		88		842
Griffon Corp.*		90		840
CBIZ, Inc.*		96		830
RSC Holdings, Inc.*		97		826
Cubic Corp.		30		816
G & K Services, Inc. — Class A		40		809
Advisory Board Co.*		36		803
Federal Signal Corp.		96		788
Albany International Corp. — Class A		60		770
DynCorp International, Inc. — Class A*		50		759
Encore Wire Corp.		40		758
AZZ, Inc.*		30		753
Genco Shipping & Trading Ltd.		50		740
Michael Baker Corp.*		20		738
Aerovironment, Inc.*		20		736
ATC Technology Corp.*		50		732
Quanex Building Products Corp.		78		731
GeoEye, Inc.*		38		731
Pacer International, Inc.		70		730
Kelly Services, Inc. — Class A		56		729
Stanley, Inc.*		20		724
Dycom Industries, Inc.*		88		723
Raven Industries, Inc.		30		723
Interline Brands, Inc.*		68		723
Blount International, Inc.*		76		720
School Specialty, Inc.*		37		707
Republic Airways Holdings, Inc.*		66		704
Amerco, Inc.*		20		691
Taser International, Inc.*		130		686
Eagle Bulk Shipping Inc.		100		682
Gibraltar Industries, Inc.		56		669
Atlas Air Worldwide Holdings Company, Inc.*		35		662
EnerSys*		60		660
NCI Building Systems, Inc.*		40		652
Chart Industries, Inc.*		60		638

			MARKET
	SHARES		VALUE
AAON, Inc.		30	$	626
LB Foster Co. — Class A*		20		626
Tennant Co.		40		616
Apogee Enterprises, Inc.		59		611
American Ecology Corp.		30		607
Kimball International, Inc. — Class B		70		603
Standex International Corp.		30		595
Ennis Inc.		49		593
FuelCell Energy, Inc.*		150		582
Powell Industries, Inc.*		20		580
Dynamic Materials Corp.		30		579
Titan International, Inc.		70		578
Ener1, Inc.*		80		572
Marten Transport Ltd.*		30		569
Argon ST, Inc.*		30		566
Rush Enterprises, Inc. — Class A*		66		566
Colfax Corp.*		53		551
Columbus McKinnon Corp. — Class A*		40		546
American Reprographics Co.*		79		545
CRA International, Inc.*		20		539
Applied Signal Technology, Inc.		30		538
Kforce, Inc.*		70		538
Orion Marine Group, Inc.*		53		512
Freightcar America, Inc.		28		512
Hawaiian Holdings, Inc.*		80		510
Interface, Inc. — Class A		110		510
Cascade Corp.		17		508
Trex Company, Inc.*		30		494
Aceto Corp.		49		491
Altra Holdings, Inc.*		60		475
Pike Electric Corp.*		38		467
Cenveo, Inc.*		105		467
Preformed Line Products Co.		10		460
Innerworkings, Inc.*		70		459
Insteel Industries, Inc.		40		452
DHT Maritime, Inc.		80		443
Gencorp, Inc.*		120		442
On Assignment, Inc.*		77		437
Ampco-Pittsburgh Corp.		20		434
Furmanite Corp.*		80		431
LaBarge, Inc.*		30		431
Celadon Group, Inc.*		50		427
Fuel Tech, Inc.*		40		424
TAL International Group, Inc.		30		423
Houston Wire & Cable Co.		45		419
Ladish Co., Inc.*		30		416
ACCO Brands Corp.*		118		407
Kadant, Inc.*		30		404
Ultralife Batteries, Inc.*		30		402
Met-Pro Corp.		30		400
VSE Corp.		10		392
American Commercial Lines, Inc.*		79		387
Standard Parking Corp.*		20		387

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    59

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Consolidated Graphics, Inc.*		17	$	385
EnergySolutions, Inc.		68		384
Duff & Phelps Corp. — Class A*		20		382
Teekay Tankers Ltd.		30		381
Sun Hydraulics Corp.		20		377
NACCO Industries, Inc. — Class A		10		374
Cornell Companies, Inc.*		20		372
Sterling Construction Company, Inc.*		20		371
Herley Industries, Inc.*		30		368
American Woodmark Corp.		20		365
Courier Corp.		20		358
3D Systems Corp.*		45		357
Hill International, Inc.*		50		352
CDI Corp.		27		349
YRC Worldwide, Inc.*		120		344
Schawk, Inc.		30		344
LECG Corp.*		50		336
Ducommun, Inc.		20		334
Great Lakes Dredge & Dock Corp. Co.		80		332
Bowne & Company, Inc.		56		329
Waste Services Inc.*		50		329
Saia, Inc.*		30		326
Odyssey Marine Exploration, Inc.*		100		322
Multi-Color Corp.		20		316
Wabash National Corp.		70		315
M&F Worldwide Corp.*		20		309
DXP Enterprises, Inc.*		20		292
Tecumseh Products Co. — Class A*		30		287
First Advantage Corp. — Class A*		20		283
Titan Machinery, Inc.*		20		281
Omega Flex, Inc.		13		272
Standard Register Co.		30		268
Vicor Corp.		40		264
Capstone Turbine Corp.*		310		260
PMFG, Inc.*		27		258
Spherion Corp.*		116		256
LSI Industries, Inc.		37		254
International Shipholding Corp.		10		253
ICF International, Inc.*		10		246
Advanced Battery Technologies, Inc.*		90		239
Dynamex, Inc.*		16		236
TurboChef Technologies, Inc.*		48		236
Microvision, Inc.*		140		235
H&E Equipment Services, Inc.*		30		231
Lydall, Inc.*		40		230
Lawson Products, Inc.		10		229
LMI Aerospace, Inc.*		20		227
Polypore International, Inc.*		30		227
Volt Information Sciences, Inc.*		30		217
Textainer Group Holdings Ltd.		20		212

			MARKET
	SHARES		VALUE
Horizon Lines, Inc. — Class A		60	$	209
Thermadyne Holdings Corp.*		30		206
Greenbrier Companies, Inc.		30		206
Casella Waste Systems, Inc. — Class A*		50		204
TBS International Ltd. — Class A*		20		201
Energy Recovery, Inc.*		26		197
Graham Corp.		18		195
Valence Technology, Inc.*		106		193
Power-One, Inc.*		160		190
Key Technology, Inc.*		10		189
Flow International Corp.*		78		189
China Fire & Security Group, Inc.*		27		184
American Railcar Industries, Inc.		17		179
Sauer, Inc.		20		175
Plug Power, Inc.*		170		173
GT Solar International, Inc.*		57		165
Fushi Copperweld, Inc.*		30		158
Integrated Electrical Services, Inc.*		18		158
Hudson Highland Group, Inc.*		46		154
Alamo Group, Inc.		10		150
Ultrapetrol Bahamas Ltd.*		46		147
Harbin Electric, Inc.*		18		144
Universal Truckload Services, Inc.*		10		142
Twin Disc, Inc.		20		138
Flanders Corp.*		28		131
EnerNOC, Inc.*		17		126
PowerSecure International, Inc.*		38		125
Park-Ohio Holdings Corp.*		20		123
PRG-Schultz International, Inc.*		30		122
Hurco Companies, Inc.*		10		120
China BAK Battery, Inc.*		70		113
Beacon Power Corp.*		213		113
Orion Energy Systems Inc.*		20		108
China Architectural Engineering, Inc.*		40		98
Coleman Cable Inc.*		20		91
ICT Group, Inc.*		17		78
Metalico, Inc.*		48		74
NN, Inc.		30		69
Ascent Solar Technologies, Inc.*		18		68
COMSYS IT Partners, Inc.*		30		67
Akeena Solar, Inc.*		38		65
CAI International, Inc.*		20		63
Dollar Thrifty Automotive Group, Inc.*		50		55
Protection One, Inc.*		10		48
Builders FirstSource, Inc.*		30		46
Commercial Vehicle Group, Inc.*		46		43
Trimas Corp.*		30		41
Medis Technologies Ltd.*		74		33
Xerium Technologies, Inc.*		40		26
China Direct, Inc.*		10		15
Total Industrials				268,051

60    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
INFORMATION TECHNOLOGY 7.3%
Sybase, Inc.*		170	$	4,211
Parametric Technology Corp.*		250		3,162
Jack Henry & Associates, Inc.		160		3,106
Concur Technologies, Inc.*		90		2,954
Micros Systems, Inc.*		170		2,774
CACI International, Inc. — Class A*		60		2,705
InterDigital, Inc.*		98		2,695
Solera Holdings, Inc.*		110		2,651
Informatica Corp.*		190		2,609
Polycom, Inc.*		190		2,567
Perot Systems Corp. — Class A*		180		2,461
Comtech Telecommunications Corp.*		50		2,291
PMC — Sierra, Inc.*		470		2,284
Macrovision Solutions Corp.*		180		2,277
Gartner, Inc. — Class A*		126		2,247
Mantech International Corp. — Class A*		40		2,168
Microsemi Corp.*		170		2,149
TIBCO Software, Inc.*		400		2,076
Arris Group, Inc.*		260		2,067
3Com Corp.*		860		1,961
Skyworks Solutions, Inc.*		350		1,939
Digital River, Inc.*		78		1,934
Quest Software, Inc.*		150		1,888
Tekelec*		140		1,868
j2 Global Communications, Inc.*		90		1,804
Atheros Communications, Inc.*		126		1,803
Infinera Corp.*		200		1,792
Benchmark Electronics, Inc.*		140		1,788
Cybersource Corp.*		148		1,775
Quality Systems, Inc.		40		1,745
Progress Software Corp.*		90		1,733
Blackboard, Inc.*		66		1,731
Intermec, Inc.*		130		1,726
ADTRAN, Inc.		116		1,726
Avocent Corp.*		96		1,719
Anixter International, Inc.*		57		1,717
Fair Isaac Corp.		100		1,686
VistaPrint Ltd.*		90		1,675
MKS Instruments, Inc.*		110		1,627
TiVo, Inc.*		216		1,547
SRA International, Inc. — Class A*		89		1,535
EarthLink, Inc.*		227		1,535
FEI Co.*		79		1,490
Websense, Inc.*		98		1,467
Semtech Corp.*		130		1,465
Formfactor, Inc.*		100		1,460
MAXIMUS, Inc.		40		1,404
Net 1 UEPS Technologies, Inc.*		100		1,370
Plexus Corp.*		80		1,356
Wind River Systems, Inc.*		150		1,354
Blackbaud, Inc.		100		1,350
Omniture, Inc.*		126		1,341

			MARKET
	SHARES		VALUE
Cognex Corp.		90	$	1,332
Bankrate, Inc.*		35		1,330
Riverbed Technology, Inc.*		116		1,321
Plantronics, Inc.		100		1,320
Data Domain, Inc.*		70		1,316
Cymer, Inc.*		60		1,315
Ariba, Inc.*		180		1,298
EPIQ Systems, Inc.*		76		1,270
Interwoven, Inc.*		100		1,260
Emulex Corp.*		180		1,256
Rofin-Sinar Technologies, Inc.*		60		1,235
ValueClick, Inc.*		180		1,231
CSG Systems International, Inc.*		70		1,223
Cogent, Inc.*		90		1,221
SPSS, Inc.*		45		1,213
ViaSat, Inc.*		50		1,204
Cabot Microelectronics Corp.*		46		1,199
Power Integrations, Inc.		60		1,193
Commvault Systems, Inc.*		88		1,180
Take-Two Interactive Software, Inc.		156		1,179
Hittite Microwave Corp.*		40		1,178
Lawson Software, Inc.*		246		1,166
Tessera Technologies, Inc.*		98		1,164
Euronet Worldwide, Inc.*		100		1,161
Scansource, Inc.*		60		1,156
Harmonic, Inc.*		200		1,122
ACI Worldwide, Inc.*		70		1,113
Rogers Corp.*		40		1,111
Synaptics, Inc.*		67		1,110
Sycamore Networks, Inc.*		410		1,103
Coherent, Inc.*		50		1,073
DealerTrack Holdings, Inc.*		90		1,070
Triquint Semiconductor, Inc.*		310		1,066
MTS Systems Corp.		40		1,066
Acxiom Corp.		130		1,054
ATMI, Inc.*		68		1,049
Black Box Corp.		40		1,045
Electronics for Imaging, Inc.*		108		1,032
Wright Express Corp.*		80		1,008
Mentor Graphics Corp.*		190		982
United Online, Inc.		160		971
L-1 Identity Solutions, Inc.*		136		917
Tyler Technologies, Inc.*		76		910
Netlogic Microsystems, Inc.*		40		880
Heartland Payment Systems, Inc.		50		875
S1 Corp.*		110		868
Netgear, Inc.*		76		867
Adaptec, Inc.*		257		848
Sapient Corp.*		190		844
Littelfuse, Inc.*		50		830
AsiaInfo Holdings, Inc.*		70		829
DTS, Inc. — Class A*		45		826
MercadoLibre, Inc.*		50		820
Forrester Research, Inc.*		29		818
Standard Microsystems Corp.*		50		817

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    61

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Imation Corp.		60	$	814
Brooks Automation, Inc.*		140		813
Manhattan Associates, Inc.*		50		790
Micrel, Inc.		108		789
Checkpoint Systems, Inc.*		80		787
EMS Technologies, Inc.*		30		776
Park Electrochemical Corp.		40		758
Monolithic Power Systems, Inc.*		60		757
VeriFone Holdings, Inc.*		150		735
Ultimate Software Group, Inc.*		50		730
Zoran Corp.*		106		724
Advent Software, Inc.*		36		719
Starent Networks Corp.*		60		716
Palm, Inc.*		230		706
Syntel, Inc.		30		694
Insight Enterprises, Inc.*		100		690
Sonus Networks, Inc.*		430		679
Advanced Energy Industries, Inc.*		68		677
Silicon Image, Inc.*		160		672
RealNetworks, Inc.*		190		671
MSC.Software Corp.*		100		668
Teletech Holdings, Inc.*		80		668
JDA Software Group, Inc.*		50		656
Daktronics, Inc.		70		655
MicroStrategy, Inc. — Class A*		17		631
Cavium Networks, Inc.*		60		631
Electro Rent Corp.		55		614
Avid Technology, Inc.*		56		611
Cohu, Inc.		50		607
Faro Technologies, Inc.*		36		607
Epicor Software Corp.*		126		605
Ultratech, Inc.*		50		598
Bel Fuse, Inc. — Class B		28		594
THQ, Inc.*		140		587
Actel Corp.*		50		586
Neutral Tandem, Inc.*		36		584
Vasco Data Security International*		56		578
Blue Coat Systems, Inc.*		68		571
Universal Display Corp.*		60		567
TeleCommunication Systems, Inc. — Class A*		66		567
OmniVision Technologies, Inc.*		106		556
Applied Micro Circuits Corp.*		140		550
Transmeta Corp.*		30		546
Newport Corp.*		80		542
SAVVIS, Inc.*		78		537
Exar Corp.*		80		534
Seachange International, Inc.*		74		534
Synchronoss Technologies, Inc.*		50		533
Sigma Designs, Inc.*		56		532
Sanmina-SCI Corp.*		1,130		531
Constant Contact, Inc.*		40		530
Ciber, Inc.*		110		529
InfoSpace, Inc.		70		528

			MARKET
	SHARES		VALUE
IPG Photonics Corp.*		40	$	527
GSI Commerce, Inc.*		50		526
Entegris, Inc.*		240		526
DG FastChannel, Inc.*		42		524
Art Technology Group, Inc.*		270		521
Ixia*		90		520
Netscout Systems, Inc.*		60		517
Methode Electronics, Inc. — Class A		76		512
Vocus, Inc.*		28		510
Netezza Corp.*		76		505
Amkor Technology, Inc.*		230		501
The Knot, Inc.*		60		499
comScore, Inc.*		39		497
Integral Systems, Inc.*		40		482
Supertex, Inc.*		20		480
Echelon Corp.*		58		473
Vignette Corp.*		50		470
Brightpoint, Inc.*		108		470
TNS, Inc.*		50		469
TTM Technologies, Inc.*		90		469
RightNow Technologies, Inc.*		60		464
Taleo Corp.*		59		462
SYNNEX Corp.*		40		453
Extreme Networks, Inc.*		190		445
Utstarcom, Inc.*		240		444
Veeco Instruments, Inc.*		70		444
3PAR, Inc.*		58		443
SonicWALL, Inc.*		110		438
RF Micro Devices, Inc.*		560		437
Internet Capital Group, Inc.*		80		436
Move, Inc.*		270		432
Stratasys, Inc.*		40		430
Terremark Worldwide, Inc.*		110		428
OSI SYSTEMS INC*		30		415
IXYS Corp.		50		413
Immersion Corp.*		70		412
Silicon Storage Technology, Inc.*		180		412
LoopNet, Inc.*		60		409
Electro Scientific Industries, Inc.*		60		407
Digi International, Inc.*		50		405
ShoreTel, Inc.*		90		404
DSP Group, Inc.*		50		401
Kenexa Corp. — Class A*		50		399
Symyx Technologies, Inc.*		66		392
Symmetricom, Inc.*		98		387
BigBand Networks, Inc.*		70		386
Actuate Corp.*		130		385
Lattice Semiconductor Corp.*		250		377
Pegasystems, Inc.		30		371
NIC, Inc.		80		368
Cirrus Logic, Inc.*		137		367
CTS Corp.		66		364
Diodes, Inc.*		60		364

62    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Anaren, Inc.*		30	$	358
Volterra Semiconductor Corp.*		50		357
Bottomline Technologies, Inc.*		50		355
Oplink Communications, Inc.*		40		344
Ness Technologies, Inc.*		80		342
Mercury Computer Systems, Inc.*		54		341
Perficient, Inc.*		70		335
Smith Micro Software, Inc.*		60		334
infoGROUP, Inc.		70		332
iGate Corp.*		50		325
Double-Take Software, Inc.*		36		323
DemandTec, Inc.*		40		323
Hughes Communications, Inc.*		20		319
Finisar Corp.*		836		318
Super Micro Computer, Inc.*		50		317
Acme Packet, Inc.*		60		316
Novatel Wireless, Inc.*		68		316
STEC, Inc.*		74		315
DivX, Inc.*		60		314
Airvana, Inc.*		50		306
Kopin Corp.*		150		306
Cass Information Systems, Inc.		10		305
Advanced Analogic Technologies, Inc.*		100		302
NCI, Inc.*		10		301
Technitrol, Inc.		86		299
Switch & Data Facilities Company, Inc.*		40		296
Marchex, Inc.		50		292
Internet Brands, Inc. — Class A*		50		291
Loral Space & Communications, Inc.*		20		291
ModusLink Global Solutions, Inc.*		100		289
SuccessFactors, Inc.*		50		287
Online Resources Corp.*		60		284
Compellent Technologies, Inc.*		29		282
Aruba Networks, Inc.*		110		281
Ceva, Inc.*		40		280
Radisys Corp.*		50		277
Internap Network Services Corp.*		110		275
Pericom Semiconductor Corp.*		50		274
Rimage Corp.*		20		268
Opnet Technologies, Inc.*		27		266
Hackett Group, Inc.*		90		263
PC-Tel, Inc.		40		263
China Security & Surveillance Technology, Inc.*		59		261
NVE Corp.*		10		261
Harris Stratex Networks, Inc. — Class A*		50		258
ExlService Holdings, Inc.*		30		257
Gerber Scientific, Inc.*		50		256
MRV Communications, Inc.*		330		254
Intevac, Inc.*		50		254

			MARKET
	SHARES		VALUE
Liquidity Services Inc.*		30	$	250
Rudolph Technologies, Inc.*		70		247
Trident Microsystems, Inc.*		130		246
Comverge, Inc.*		50		245
Microtune, Inc.*		120		245
Cogo Group, Inc.*		50		243
ICx Technologies, Inc.*		30		237
Rackable Systems, Inc.*		60		236
American Software, Inc. — Class A		50		235
Multi-Fineline Electronix, Inc.*		20		234
Rackspace Hosting*		43		231
Keynote Systems, Inc.*		30		231
Sourcefire, Inc.*		40		224
OpenTV Corp.*		180		221
Globecomm Systems, Inc.*		40		220
Web.com Group, Inc.*		60		220
SupportSoft, Inc.*		98		219
Agilysys, Inc.		50		215
FalconStor Software, Inc.*		76		211
Phoenix Technologies, Ltd.*		60		210
Measurement Specialties, Inc.*		30		209
Emcore Corp.*		160		208
Zygo Corp., Inc.*		30		207
Entrust, Inc.*		130		205
Maxwell Technologies, Inc.*		40		203
Radiant Systems, Inc.*		60		202
Global Cash Access Holdings, Inc.*		88		195
Techwell, Inc.*		30		195
Presstek, Inc.*		60		193
Interactive Intelligence, Inc.*		30		192
i2 Technologies, Inc.*		30		192
Kulicke & Soffa Industries, Inc.*		110		187
Anadigics, Inc.*		126		186
China Information Security Technology, Inc.*		50		180
Renaissance Learning, Inc.		20		180
Safeguard Scientifics, Inc.*		260		179
Photronics, Inc.*		90		176
Monotype Imaging Holdings, Inc.*		30		174
CPI International, Inc.*		20		173
PROS Holdings, Inc.*		30		173
NetSuite, Inc.*		20		169
Callidus Software, Inc.*		56		167
Ebix, Inc.*		7		167
Hutchinson Technology, Inc.*		48		167
Isilon Systems, Inc.*		50		165
Unica Corp.*		30		164
SiRF Technology Holdings, Inc.*		126		161
Chordiant Software, Inc.*		60		160
Quantum Corp.*		440		158
Mattson Technology, Inc.*		110		155
Semitool, Inc.*		50		153
Orbcomm, Inc.*		70		151
Limelight Networks Inc.*		60		147

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    63

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Cray, Inc.*		70	$	146
Powerwave Technologies, Inc.*		280		140
Deltek, Inc.*		30		139
Smart Modular Technologies WWH, Inc.*		88		136
TechTarget, Inc.*		30		130
QAD, Inc.		30		126
Dice Holdings, Inc.*		30		122
Hypercom Corp.*		110		119
TheStreet.com, Inc.		40		116
Rubicon Technology, Inc.*		27		115
Parkervision, Inc.*		46		114
Virtusa Corp.*		20		113
Axcelis Technologies, Inc.*		220		112
PC Connection, Inc.*		20		102
Digimarc Corp.*		10		100
PLX Technology, Inc.*		58		100
MIPS Technology, Inc.*		88		98
Bookham, Inc.*		210		95
AuthenTec, Inc.*		55		92
Magma Design Automation, Inc.*		90		92
Sonic Solutions, Inc.*		50		88
Ultra Clean Holdings*		40		80
ArcSight, Inc.*		10		80
Gevity HR, Inc.		50		76
Guidance Software, Inc.*		18		73
LTX-Credence Corp.*		270		73
PC Mall, Inc.*		18		72
Opnext, Inc.*		40		70
Spansion, Inc.*		266		50
KEMET Corp.*		180		49
Avanex Corp.*		30		32
Asyst Technologies, Inc.*		110		28
HSW International, Inc.*		60		23
Elixir Gaming Technologies, Inc.*		136		18
Nextwave Wireless, Inc.*		100		9
Entropic Communications, Inc.*		16		8
Midway Games, Inc.*		20		4
Total Information Technology				249,382
HEALTH CARE 7.0%
Myriad Genetics, Inc.*		100		6,626
Alexion Pharmaceuticals, Inc.*		156		5,646
OSI Pharmaceuticals, Inc.*		120		4,686
Onyx Pharmaceuticals, Inc.*		120		4,099
Immucor, Inc.*		150		3,987
Thoratec Corp.*		120		3,899
Magellan Health Services, Inc.*		90		3,524
Valeant Pharmaceuticals International*		148		3,389
Owens & Minor, Inc.		90		3,388
AMERIGROUP Corp.*		110		3,247
Psychiatric Solutions, Inc.*		116		3,231
United Therapeutics Corp.*		50		3,127

			MARKET
	SHARES		VALUE
Bio-Rad Laboratories, Inc. — Class A*		39	$	2,937
Masimo Corp.*		98		2,923
Steris Corp.		120		2,867
Haemonetics Corp.*		50		2,825
Cubist Pharmaceuticals, Inc.*		116		2,803
Isis Pharmaceuticals, Inc.*		188		2,666
NuVasive, Inc.*		76		2,633
West Pharmaceutical Services, Inc.		68		2,568
Auxilium Pharmaceuticals, Inc.*		90		2,560
PSS World Medical, Inc.*		134		2,522
Sequenom, Inc.*		120		2,381
Amedisys, Inc.*		56		2,315
Regeneron Pharmaceuticals, Inc.*		126		2,313
Meridian Bioscience, Inc.		88		2,241
Healthspring, Inc.*		110		2,197
Mentor Corp.		70		2,165
Alkermes, Inc.*		200		2,130
Martek Biosciences Corp.		70		2,122
Healthsouth Corp.*		190		2,082
Varian, Inc.*		60		2,011
Chemed Corp.		50		1,988
Viropharma, Inc.*		150		1,953
Luminex Corp.*		90		1,922
Celera Corp.*		170		1,892
Alnylam Pharmaceuticals, Inc.*		76		1,879
Dionex Corp.*		40		1,794
Centene Corp.*		90		1,774
Catalyst Health Solutions, Inc.*		70		1,704
Eclipsys Corp.*		120		1,703
Acorda Therapeutics, Inc.*		80		1,641
AmSurg Corp.*		70		1,634
Medicis Pharmaceutical Corp. —
Class A		116		1,612
Integra LifeSciences
Holdings Corp.*		45		1,601
Wright Medical Group, Inc.*		78		1,594
Medicines Co.*		106		1,561
PDL BioPharma, Inc.		250		1,545
athenahealth, Inc.*		40		1,505
Medarex, Inc.*		266		1,484
Gentiva Health Services, Inc.*		50		1,463
Volcano Corp.*		97		1,455
HMS Holdings Corp.*		46		1,450
Conmed Corp.*		60		1,436
Datascope Corp.		27		1,410
AMAG Pharmaceuticals, Inc.*		38		1,362
American Medical Systems
Holdings, Inc.*		150		1,348
Greatbatch, Inc.*		50		1,323
Landauer, Inc.		18		1,319
Theravance, Inc.*		106		1,313
XenoPort, Inc.*		50		1,254
Cepheid, Inc.*		120		1,246

64    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
CV Therapeutics, Inc.*		130	$	1,197
Allscripts Healthcare Solutions, Inc.		120		1,190
Parexel International Corp.*		120		1,165
Seattle Genetics, Inc.*		126		1,126
Questcor Pharmaceuticals, Inc.*		120		1,117
Nektar Therapeutics*		200		1,112
Exelixis, Inc.*		220		1,104
Align Technology, Inc.*		126		1,102
Phase Forward, Inc.*		88		1,102
Abiomed, Inc.*		66		1,084
LHC Group, Inc.*		30		1,080
Merit Medical Systems, Inc.*		60		1,076
Hanger Orthopedic Group, Inc.*		73		1,059
Invacare Corp.		67		1,040
PharMerica Corp.*		60		940
Dendreon Corp.*		200		916
ev3, Inc.*		150		915
Par Pharmaceutical Companies, Inc.*		68		912
National Healthcare Corp.		18		912
Salix Pharmaceuticals Ltd.*		100		883
Conceptus, Inc.*		56		852
Cyberonics, Inc.*		50		828
Analogic Corp.		30		818
inVentiv Health, Inc.*		70		808
Omnicell, Inc.*		66		806
Healthways, Inc.*		70		804
Abaxis, Inc.*		50		801
Vivus, Inc.*		150		798
Sun Healthcare Group, Inc.*		90		796
Geron Corp.*		168		785
Quidel Corp.*		60		784
Emergent Biosolutions, Inc.*		30		783
Kindred Healthcare, Inc.*		60		781
Cougar Biotechnology, Inc.*		30		780
Natus Medical, Inc.*		60		777
Kendle International, Inc.*		30		772
SurModics, Inc.*		30		758
Res-Care, Inc.*		50		751
Neogen Corp.*		30		749
InterMune, Inc.*		70		741
Medivation, Inc.*		50		728
Halozyme Therapeutics, Inc.*		130		728
SonoSite, Inc.*		38		725
Zoll Medical Corp.*		38		718
Universal American Financial Corp.*		80		706
Emergency Medical Services Corp. — Class A*		19		696
Genoptix Inc.*		20		682
GTx, Inc.*		40		674
Allos Therapeutics, Inc.*		110		673
Savient Pharmaceuticals, Inc.*		116		672
Arena Pharmaceuticals, Inc.*		160		667
Angiodynamics, Inc.*		48		657

			MARKET
	SHARES		VALUE
Odyssey HealthCare, Inc.*		70	$	648
Rigel Pharmaceuticals, Inc.*		78		624
Progenics Pharmaceuticals, Inc.*		60		619
Cross Country Healthcare, Inc.*		70		615
Human Genome Sciences, Inc.*		290		615
Orthofix International NV*		40		613
RehabCare Group, Inc.*		40		606
Incyte Corp.*		160		606
Symmetry Medical, Inc.*		76		606
Optimer Pharmaceuticals, Inc.*		50		606
NPS Pharmaceuticals, Inc.*		97		602
eResearch Technology, Inc.*		90		597
ICU Medical, Inc.*		18		597
Genomic Health, Inc.*		30		584
MedAssets, Inc.*		40		584
Momenta Pharmaceuticals, Inc.*		50		580
Durect Corp.*		170		576
Osiris Therapeutics, Inc.*		30		575
CryoLife, Inc.*		59		573
Synovis Life Technologies, Inc.*		30		562
Enzon Pharmaceuticals, Inc.*		96		560
AMN Healthcare Services, Inc.*		66		558
IRIS International, Inc.*		40		558
Noven Pharmaceuticals, Inc.*		50		550
Cypress Bioscience, Inc.*		80		547
MWI Veterinary Supply, Inc.*		20		539
Albany Molecular Research, Inc.*		55		536
Indevus Pharmaceuticals, Inc.*		170		534
Molina Healthcare, Inc.*		30		528
Bio-Reference Labs, Inc.*		20		525
Metabolix, Inc.*		40		509
Pharmasset, Inc.*		38		498
Somanetics Corp.*		30		495
Ligand Pharmaceuticals, Inc. — Class B*		180		493
Vnus Medical Technologies, Inc.*		30		487
Assisted Living Concepts, Inc. — Class A*		116		481
Facet Biotech Corp.*		50		480
Orthovita, Inc.*		140		475
Palomar Medical Technologies, Inc.*		40		461
ImmunoGen, Inc.*		106		455
Affymetrix, Inc.*		152		454
Almost Family, Inc.*		10		450
Maxygen Inc.*		50		446
Bruker BioSciences Corp.*		110		444
Cantel Medical Corp.*		30		440
Corvel Corp.*		20		440
Dyax Corp.*		119		433
Computer Programs & Systems, Inc.		16		429
Vital Images, Inc.*		30		417
Pain Therapeutics, Inc.*		70		414

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    65

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Accuray, Inc.*		80	$	413
FGX International Holdings Ltd.*		30		412
Emeritus Corp.*		40		401
Alliance Imaging, Inc.*		50		399
Array Biopharma, Inc.*		96		389
Sirona Dental Systems, Inc.*		37		389
Kensey Nash Corp.*		20		388
Arqule, Inc.*		90		380
MannKind Corp.*		110		377
US Physical Therapy, Inc.*		28		373
OraSure Technologies, Inc.*		100		368
Ardea Biosciences, Inc.*		30		359
Nabi Biopharmaceuticals*		106		355
Triple-S Management Corp. — Class B*		30		345
Enzo Biochem, Inc.*		70		342
Skilled Healthcare Group, Inc. — Class A*		40		338
Exactech, Inc.*		20		337
Micrus Endovascular Corp.*		29		337
Ensign Group, Inc.		20		335
Air Methods Corp.*		20		320
Inspire Pharmaceuticals, Inc.*		88		317
Medcath Corp.*		30		313
Insulet Corp.*		40		309
Idera Pharmaceuticals, Inc.*		40		307
RTI Biologics, Inc.*		110		304
Pozen, Inc.*		60		302
Cardiac Science Corp.*		40		300
Medical Action Industries, Inc.*		30		300
Obagi Medical Products, Inc.*		40		298
Cadence Pharmaceuticals, Inc.*		40		289
Hansen Medical, Inc.*		40		289
ArthroCare Corp.*		60		286
Accelrys, Inc.*		64		279
BMP Sunstone Corp.*		50		279
Idenix Pharmaceuticals, Inc.*		48		278
Cambrex Corp.*		60		277
Akorn, Inc.*		120		276
Sangamo Biosciences, Inc.*		78		271
Stereotaxis, Inc.*		60		264
Neurocrine Biosciences, Inc.*		80		256
Affymax, Inc.*		25		250
Repligen Corp.*		66		249
BioMimetic Therapeutics, Inc.*		27		249
CardioNet, Inc.*		10		247
Nighthawk Radiology Holdings, Inc.*		50		243
I-Flow Corp.*		50		240
Zymogenetics, Inc.*		80		240
Lexicon Genetics, Inc.*		170		238
Celldex Therapeutics, Inc.*		30		238
Discovery Laboratories, Inc.*		210		235
Immunomedics, Inc.*		138		235
Orexigen Therapeutics, Inc.*		40		223

			MARKET
	SHARES		VALUE
Synta Pharmaceuticals Corp.*		36	$	220
Novavax, Inc.*		116		219
TomoTherapy, Inc.*		86		205
TranS1, Inc.*		28		202
KV Pharmaceutical Co.*		70		202
Cytokinetics, Inc.*		67		191
Life Sciences Research, Inc.*		20		188
Cynosure, Inc.*		20		183
Clinical Data, Inc.*		20		178
Spectranetics Corp.*		68		177
XOMA Ltd.*		280		174
Molecular Insight Pharmaceuticals, Inc.*		40		172
IPC The Hospitalist Company, Inc.*		10		168
RadNet, Inc.*		50		168
Adolor Corp.*		100		166
Sunrise Senior Living, Inc.*		98		165
Alexza Pharmaceuticals, Inc.*		50		159
Depomed, Inc.*		96		158
Opko Health, Inc.*		96		156
NxStage Medical, Inc.*		58		155
DexCom, Inc.*		56		155
Acura Pharmaceuticals, Inc.*		20		147
Cytori Therapeutics, Inc.*		40		144
Chindex International, Inc.*		18		143
Nanosphere, Inc.*		30		143
Capital Senior Living Corp.*		47		140
MAP Pharmaceuticals, Inc.*		20		140
Targacept, Inc.*		37		132
Ariad Pharmaceuticals, Inc.*		150		128
Columbia Labs, Inc.*		100		127
Javelin Pharmaceuticals, Inc.*		100		125
Caraco Pharm Labs, Inc.*		20		118
MiddleBrook Pharmaceuticals, Inc.*		78		117
Sucampo Pharmaceuticals, Inc. — Class A*		20		115
Alphatec Holdings, Inc.*		48		113
Five Star Quality Care, Inc.*		70		107
Biodel, Inc.*		20		96
Caliper Life Sciences, Inc.*		96		93
Virtual Radiologic Corp.*		10		85
Amicus Therapeutics, Inc.*		9		72
Acadia Pharmaceuticals, Inc.*		70		63
Vision-Sciences, Inc.*		38		58
Rexahn Pharmaceuticals, Inc.*		60		53
BioForm Medical, Inc.*		50		46
Providence Service Corp.*		30		44
Cell Genesys, Inc.*		178		39
Jazz Pharmaceuticals, Inc.*		20		39
Protalix BioTherapeutics, Inc.*		20		37
PharmaNet Development Group, Inc.*		37		34
Marshall Edwards, Inc.*		40		28
Total Health Care				239,554

66    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY 5.1%
Wendy’s/Arby’s Group, Inc. — Class A		840	$	4,150
Marvel Entertainment, Inc.*		100		3,075
Corinthian Colleges, Inc.*		180		2,947
Jack in the Box, Inc.*		130		2,872
Tupperware Brands Corp.		126		2,860
Bally Technologies, Inc.*		116		2,787
Matthews International Corp. — Class A		74		2,714
Netflix, Inc.*		88		2,630
Aaron Rents, Inc.		98		2,609
Rent-A-Center, Inc.*		140		2,471
Tractor Supply Co.*		67		2,421
WMS Industries, Inc.*		90		2,421
Deckers Outdoor Corp.*		30		2,396
Carter’s, Inc.*		120		2,311
Wolverine World Wide, Inc.		109		2,293
Aeropostale, Inc.*		140		2,254
Polaris Industries, Inc.		70		2,005
Vail Resorts, Inc.*		74		1,968
The Warnaco Group, Inc.*		100		1,963
Interactive Data Corp.		78		1,923
Capella Education Co.*		30		1,763
Pool Corp.		96		1,725
Under Armour, Inc.*		70		1,669
Collective Brands, Inc.*		140		1,641
Fossil, Inc.*		97		1,620
Ryland Group, Inc.		90		1,590
Chico’s FAS, Inc.*		380		1,588
Sonic Corp.*		130		1,582
Gymboree Corp.*		60		1,565
Men’s Wearhouse, Inc.		107		1,449
Bob Evans Farms, Inc.		66		1,348
Cheesecake Factory, Inc.*		130		1,313
Regis Corp.		90		1,308
Callaway Golf Co.		136		1,263
Sotheby’s		140		1,245
Jakks Pacific, Inc.*		60		1,238
Iconix Brand Group, Inc.*		120		1,174
Coinstar, Inc.*		60		1,171
Buffalo Wild Wings, Inc.*		45		1,154
Sally Beauty Holdings, Inc.*		200		1,138
Tempur-Pedic International, Inc.		160		1,134
Timberland Co. — Class A*		96		1,109
J. Crew Group, Inc.*		90		1,098
99 Cents Only Stores*		100		1,093
Buckle, Inc.		50		1,091
Children’s Place Retail Stores, Inc.*		50		1,084
Dress Barn, Inc.*		100		1,074
Columbia Sportswear Co.		30		1,061
Jos. A. Bank Clothiers, Inc.*		40		1,046
NutriSystem, Inc.		70		1,021
P.F. Chang’s China Bistro, Inc.*		48		1,005

			MARKET
	SHARES		VALUE
Pinnacle Entertainment, Inc.*		130	$	998
Fuel Systems Solutions, Inc.*		30		983
Helen of Troy Ltd.*		56		972
CEC Entertainment, Inc.*		40		970
CKE Restaurants, Inc.		110		955
Gaylord Entertainment Co.*		88		954
Cracker Barrel Old Country
Store, Inc.		46		947
Universal Technical Institute, Inc.*		55		944
Hibbett Sports Inc.*		60		943
Jackson Hewitt Tax Service, Inc.		60		941
Fred’s, Inc.		86		925
Papa John’s International, Inc.*		50		921
Live Nation, Inc.*		160		918
National CineMedia, Inc.		90		913
Life Time Fitness, Inc.*		70		906
Cato Corp. — Class A		60		906
Skechers U.S.A., Inc. — Class A*		70		897
Unifirst Corp.		30		891
Steiner Leisure Ltd.*		30		886
PetMed Express, Inc.*		50		881
Steven Madden, Ltd.*		40		853
Texas Roadhouse, Inc.*		110		852
Meritage Homes Corp.*		70		852
Exide Technologies*		160		846
HOT Topic, Inc.*		90		834
Churchill Downs, Inc.		20		808
Brunswick Corp.		190		800
Arbitron, Inc.		60		797
Cooper Tire & Rubber Co.		126		776
Jo-Ann Stores, Inc.*		50		774
National Presto Industries, Inc.		10		770
Monro Muffler Brake, Inc.		30		765
Brown Shoe Company, Inc.		90		762
American Greetings Corp. —
Class A		100		757
Pre-Paid Legal Services, Inc.*		20		746
American Public Education, Inc.*		20		744
Ethan Allen Interiors, Inc.		50		718
Peet’s Coffee & Tea, Inc.*		30		698
Scholastic Corp.		50		679
Genesco, Inc.*		40		677
Blue Nile, Inc.*		27		661
K-Swiss, Inc. — Class A		58		661
Weyco Group, Inc.		20		661
Stage Stores, Inc.		80		660
Marcus Corp.		40		649
Red Robin Gourmet Burgers, Inc.*		38		640
Bebe Stores, Inc.		80		598
The Wet Seal, Inc. — Class A*		200		594
Charming Shoppes, Inc.*		240		586
World Wrestling
Entertainment, Inc.		50		554
Shuffle Master, Inc.*		110		546

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    67

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Stewart Enterprises, Inc. — Class A		180	$	542
Group 1 Automotive, Inc.		50		539
Superior Industries
International, Inc.		50		526
Maidenform Brands, Inc.*		50		508
Finish Line, Inc. — Class A		90		504
Harte-Hanks, Inc.		80		499
True Religion Apparel, Inc.*		40		498
Quiksilver, Inc.*		270		497
Universal Electronics, Inc.*		30		487
Drew Industries, Inc.*		40		480
Blockbuster, Inc. — Class A*		380		479
Dillard’s, Inc. — Class A		120		476
Cabela’s, Inc. — Class A*		80		466
Standard-Pacific Corp.*		260		463
DineEquity, Inc.		40		462
ArvinMeritor, Inc.		160		456
RCN Corp.*		76		448
Citi Trends, Inc.*		30		442
Volcom, Inc.*		40		436
Speedway Motorsports, Inc.		27		435
Ameristar Casinos, Inc.		50		432
BJ’s Restaurants, Inc.*		40		431
Core-Mark Holding Company, Inc.*		20		430
California Pizza Kitchen, Inc.*		40		429
RC2 Corp.*		40		427
Christopher & Banks Corp.		76		426
Cinemark Holdings, Inc.		57		424
CKX, Inc.*		110		404
Denny’s Corp.*		198		394
Blyth, Inc.		50		392
Raser Technologies, Inc.*		104		388
Domino’s Pizza, Inc.*		80		377
DSW, Inc.*		30		374
Ambassadors Group, Inc.		40		368
PEP Boys-Manny Moe & Jack		88		363
Winnebago Industries, Inc.		60		362
Steak n Shake Co.*		60		357
CSS Industries, Inc.		20		355
Haverty Furniture Companies, Inc.		37		345
Mediacom Communications Corp.*		80		344
Coldwater Creek, Inc.*		120		342
Sinclair Broadcast Group, Inc. — Class A		110		341
Modine Manufacturing Co.		70		341
iRobot Corp.*		37		334
Ulta Salon Cosmetics & Fragrance, Inc.*		40		331
Dolan Media Co.*		50		330
Overstock.com, Inc.*		30		323
Spartan Motors, Inc.		68		322
Asbury Automotive Group, Inc.		70		320
M/I Homes, Inc.		30		316

			MARKET
	SHARES		VALUE
Midas, Inc.*		30	$	315
Cherokee, Inc.		18		312
Orbitz Worldwide, Inc.*		80		310
Knology, Inc.*		60		310
Lululemon Athletica, Inc.*		38		301
Zumiez, Inc.*		40		298
Belo Corp. — Class A		190		296
Tenneco, Inc.*		100		295
Stamps.com, Inc.*		30		295
Cox Radio Inc. — Class A*		49		294
American Axle & Manufacturing Holdings, Inc.		98		283
Movado Group, Inc.		30		282
Shutterfly, Inc.*		40		280
Morgans Hotel Group Co.*		60		280
Unifi, Inc.*		98		276
America’s Car Mart, Inc.*		20		276
Cavco Industries, Inc.*		10		269
Dorman Products, Inc.*		20		264
Oxford Industries, Inc.		30		263
Big 5 Sporting Goods Corp.		50		261
hhgregg, Inc.*		30		260
Charlotte Russe Holding, Inc.*		40		260
Sonic Automotive, Inc.		64		255
Leapfrog Enterprises, Inc.*		70		245
AFC Enterprises, Inc.*		50		235
Zale Corp.*		70		233
Monarch Casino & Resort, Inc.*		20		233
La-Z-Boy, Inc.		107		232
Landry’s Restaurants, Inc.		20		232
1-800-FLOWERS.com, Inc.*		60		229
RHI Entertainment*		28		227
Sealy Corp.		90		226
CROCS, Inc.*		180		223
drugstore.com, Inc.*		180		223
Luby’s, Inc.*		53		222
Pacific Sunwear of California, Inc.*		139		221
Global Sources Ltd.*		40		218
Tween Brands, Inc.*		50		216
Journal Communications, Inc. — Class A		88		216
Systemax, Inc.		20		215
Lumber Liquidators, Inc.*		20		211
Outdoor Channel Holdings, Inc.*		28		210
Retail Ventures, Inc.*		60		208
Fisher Communications, Inc.		10		206
Entravision Communications Corp. — Class A*		130		203
Krispy Kreme Doughnuts, Inc.*		120		202
Audiovox Corp. — Class A*		40		200
Skyline Corp.		10		200
Furniture Brands International, Inc.		90		199
Lear Corp.*		140		197
Build-A-Bear Workshop, Inc.*		40		194

68    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Shoe Carnival, Inc.*		20	$	191
Perry Ellis International, Inc.*		30		190
K12 Inc.*		10		188
Smith & Wesson Holding Corp.*		78		177
Steinway Musical Instruments, Inc.*		10		175
G-III Apparel Group Ltd.*		27		173
Hovnanian Enterprises, Inc. — Class A*		100		172
Ruby Tuesday, Inc.*		110		172
Learning Tree International, Inc.*		20		170
Gaiam, Inc.*		36		166
Global Traffic Network, Inc.*		28		164
Rex Stores Corp.*		20		161
Dana Holding Corp.*		210		155
Hooker Furniture Corp.		20		153
Amerigon, Inc.*		46		150
Quantum Fuel Systems
Technologies Worldwide, Inc.*		176		150
Cumulus Media, Inc. — Class A*		60		149
Princeton Review, Inc.*		30		148
Conn’s, Inc.*		17		144
Kenneth Cole Productions, Inc. — Class A		20		142
American Apparel, Inc.*		70		139
Stoneridge, Inc.*		30		137
Lincoln Educational Services Corp.*		10		133
Martha Stewart Omnimedia, Inc.*		50		130
Russ Berrie & Company, Inc.*		43		128
Town Sports International Holdings, Inc.*		40		128
Valassis Communications, Inc.*		96		127
Beazer Homes USA, Inc.*		80		126
Talbots, Inc.		50		120
Nautilus, Inc.*		54		119
Wonder Auto Technology, Inc.*		30		118
New York & Company, Inc.*		50		116
Primedia, Inc.		50		109
Playboy Enterprises, Inc. — Class B*		50		108
Fuqi International, Inc.*		17		106
MarineMax, Inc.*		30		102
Palm Harbor Homes, Inc.*		20		100
Hayes Lemmerz International, Inc.*		220		99
Visteon Corp.*		280		98
Tuesday Morning Corp.*		60		98
Isle of Capri Casinos, Inc.*		30		96
McClatchy Company — Class A		120		96
Marine Products Corp.		17		96
Dover Downs Gaming & Entertainment, Inc.		30		95
Champion Enterprises, Inc.*		170		95
Bluegreen Corp.*		30		94
Great Wolf Resorts, Inc.*		60		92
Syms Corp.*		10		89

			MARKET
	SHARES		VALUE
AH Belo Corp. — Class A		40	$	87
Media General, Inc.		46		81
O’Charleys, Inc.		37		74
Brookfield Homes Corp.		17		73
Charter Communications, Inc. — Class A*		870		71
Pier 1 Imports, Inc.*		190		70
Lodgian, Inc.*		30		64
Citadel Broadcasting Corp.*		390		62
Entercom Communications Corp.		50		62
Lin TV Corp. — Class A*		56		61
Riviera Holdings Corp.*		20		60
Einstein Noah Restaurant Group, Inc.*		10		58
Crown Media Holdings, Inc. — Class A*		20		57
Stein Mart, Inc.*		50		57
Ruth’s Chris Steak House*		40		55
RH Donnelley Corp.*		146		54
Borders Group, Inc.*		130		52
Six Flags, Inc.*		150		47
Bidz.com, Inc.*		10		46
Casual Male Retail Group, Inc.*		80		42
Lee Enterprises, Inc.		100		41
Cache, Inc.*		20		40
Rick’s Cabaret International, Inc.*		10		40
Libbey, Inc.		30		38
Gray Television, Inc.		90		36
Dover Motorsports, Inc.		27		35
Fleetwood Enterprises, Inc.*		160		16
Total Consumer Discretionary				173,638
UTILITIES 2.0%
Piedmont Natural Gas Co.		160		5,067
ITC Holdings Corp.		110		4,805
Westar Energy, Inc.		220		4,512
WGL Holdings, Inc.		110		3,596
New Jersey Resources Corp.		88		3,463
Nicor, Inc.		97		3,370
IDACORP, Inc.		98		2,886
Cleco Corp.		126		2,877
Northwest Natural Gas Co.		60		2,654
Portland General Electric Co.		130		2,531
South Jersey Industries, Inc.		60		2,391
Laclede Group, Inc.		50		2,342
Southwest Gas Corp.		90		2,270
Black Hills Corp.		80		2,157
Avista Corp.		108		2,093
Unisource Energy Corp.		70		2,055
Allete, Inc.		60		1,936
California Water Service Group		40		1,857
NorthWestern Corp.		78		1,831
PNM Resources, Inc.		177		1,784
El Paso Electric Co.*		97		1,755
Mge Energy, Inc.		50		1,650

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    69

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
CH Energy Group, Inc.		30	$	1,542
UIL Holding Corp.		50		1,501
Ormat Technologies, Inc.		40		1,275
Empire District Electric Co.		70		1,232
American States Water Co.		36		1,187
SJW Corp.		30		898
Central Vermont Public Service Corp.		20		477
Connecticut Water Service, Inc.		20		472
Middlesex Water Co.		27		465
Cadiz, Inc.*		30		375
Consolidated Water Company, Inc.		30		375
Chesapeake Utilities Corp.		10		315
Southwest Water Co.		50		161
US Geothermal, Inc.*		126		105
Synthesis Energy Systems, Inc.*		50		34
Total Utilities				70,296
ENERGY 2.0%
Comstock Resources, Inc.*		100		4,725
EXCO Resources, Inc.*		320		2,899
Concho Resources, Inc.*		116		2,647
Nordic American Tanker Shipping		70		2,362
Penn Virginia Corp.		90		2,338
Arena Resources, Inc.*		80		2,247
World Fuel Services Corp.		60		2,220
Contango Oil & Gas Co.*		30		1,689
Bill Barrett Corp.*		78		1,648
Goodrich Petroleum Corp.*		49		1,468
CARBO Ceramics, Inc.		40		1,421
Dril-Quip, Inc.*		66		1,354
Precision Drilling Trust		161		1,347
Bristow Group, Inc.*		50		1,340
McMoRan Exploration Co.*		128		1,254
GulfMark Offshore, Inc.*		50		1,190
Swift Energy Co.*		70		1,177
Basic Energy Services, Inc.*		90		1,174
USEC, Inc.*		240		1,078
Lufkin Industries, Inc.		30		1,035
Atlas America, Inc.		67		995
Ship Finance International Ltd.		88		972
Vaalco Energy, Inc.*		130		967
Carrizo Oil & Gas, Inc.*		60		966
GMX Resources, Inc.*		36		912
James River Coal Co.*		56		858
Complete Production Services, Inc.*		105		856
BPZ Resources, Inc.*		130		832
Hornbeck Offshore Services, Inc.*		50		817
Rosetta Resources, Inc.*		110		779
Stone Energy Corp.*		66		727
Petroleum Development Corp.*		30		722
Parker Drilling Co.*		240		696
Newpark Resources, Inc.*		186		688

			MARKET
	SHARES		VALUE
Berry Petroleum Co. — Class A		90	$	680
Willbros Group, Inc.*		80		678
International Coal Group, Inc.*		270		621
Delta Petroleum Corp.*		130		619
ION Geophysical Corp.*		180		617
Gran Tierra Energy, Inc.*		220		616
Pioneer Drilling Co.*		110		613
Petroquest Energy, Inc.*		90		608
NATCO Group, Inc.*		40		607
Knightsbridge Tankers Ltd.		40		586
Cal Dive International, Inc.*		90		586
RPC, Inc.		60		586
Golar LNG Ltd.		80		541
Matrix Service Co.*		58		445
Western Refining, Inc.		56		435
Gulf Island Fabrication, Inc.		30		432
PHI, Inc.*		30		420
Clayton Williams Energy, Inc.*		9		409
Superior Well Services, Inc.*		40		400
Bronco Drilling Company, Inc.*		60		388
Panhandle Oil and Gas, Inc. — Class A		20		360
Crosstex Energy, Inc.		90		351
ATP Oil & Gas Corp.*		60		351
Allis-Chalmers Energy, Inc.*		60		330
Brigham Exploration Co.*		103		330
Harvest Natural Resources, Inc.*		76		327
Dawson Geophysical Co.*		18		321
Natural Gas Services Group, Inc.*		30		304
Clean Energy Fuels Corp.*		50		302
Cheniere Energy, Inc.*		100		285
T-3 Energy Services, Inc. — Class A*		30		283
Oilsands Quest, Inc.*		370		270
APCO Argentina, Inc.		10		266
FX Energy, Inc.*		88		246
Rentech, Inc.*		350		238
Gulfport Energy Corp.*		60		237
Warren Resources, Inc.*		116		231
Westmoreland Coal Co.*		20		222
Toreador Resources Corp.*		38		209
Energy XXI Bermuda Ltd.		260		205
CVR Energy, Inc.*		50		200
ENGlobal Corp.*		60		195
Alon USA Energy, Inc.		20		183
OYO Geospace Corp.*		10		175
Parallel Petroleum Corp.*		86		173
Union Drilling, Inc.*		30		156
Approach Resources, Inc.*		20		146
Delek US Holdings, Inc.		27		143
Double Eagle Petroleum Co.*		20		140
Bolt Technology Corp.*		20		139
Rex Energy Corp.*		45		132
Northern Oil And Gas, Inc.*		50		130

70    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
BMB Munai, Inc.*		88	$	122
GeoGlobal Resources, Inc.*		76		122
Trico Marine Services, Inc.*		27		121
Endeavour International Corp.*		236		118
Venoco, Inc.*		40		108
Sulphco, Inc.*		110		103
Houston American Energy Corp.		30		101
Callon Petroleum Co.*		38		99
TXCO Resources, Inc.*		66		98
Meridian Resource Corp.*		170		97
Energy Partners Ltd.*		70		95
Tri-Valley Corp.*		50		90
RAM Energy Resources, Inc.*		100		88
Georesources, Inc.*		10		87
Uranium Resources, Inc.*		100		77
Gasco Energy, Inc.*		196		76
National Coal Corp.*		60		76
GeoMet, Inc.*		40		69
Mitcham Industries, Inc.*		17		67
American Oil & Gas, Inc.*		80		64
Abraxas Petroleum Corp.*		88		63
Evergreen Energy Inc.*		180		52
GreenHunter Energy, Inc.*		10		49
Cano Petroleum, Inc.*		100		44
Pacific Ethanol, Inc.*		90		40
Aventine Renewable Energy Holdings, Inc.*		59		38
Quest Resource Corp.*		60		26
Geokinetics, Inc.*		10		25
Total Energy				69,082
CONSUMER STAPLES 1.8%
Ralcorp Holdings, Inc.*		116		6,774
Flowers Foods, Inc.		160		3,898
Chattem, Inc.*		40		2,861
Ruddick Corp.		90		2,488
Casey’s General Stores, Inc.		106		2,414
TreeHouse Foods, Inc.*		74		2,016
Fresh Del Monte Produce, Inc.*		88		1,973
Winn-Dixie Stores, Inc.*		117		1,884
Hain Celestial Group, Inc.*		90		1,718
United Natural Foods, Inc.*		90		1,604
Nash Finch Co.		35		1,571
Universal Corp.		50		1,493
Green Mountain Coffee Roasters, Inc.*		38		1,471
Sanderson Farms, Inc.		40		1,382
Lancaster Colony Corp.		40		1,372
Chiquita Brands International, Inc.*		90		1,330
Lance, Inc.		56		1,285
Tootsie Roll Industries, Inc.		50		1,280
Spartan Stores, Inc.		50		1,162
Nu Skin Enterprises, Inc.		110		1,147
J&J Snack Foods Corp.		30		1,076
Pantry, Inc.*		50		1,072

			MARKET
	SHARES		VALUE
Vector Group Ltd.		70	$	953
Darling International, Inc.*		170		933
Smart Balance, Inc.*		130		884
American Oriental
Bioengineering, Inc.*		130		883
WD-40 Co.		30		849
Central Garden and Pet Co. — Class A*		140		826
Cal-Maine Foods, Inc.		27		775
Prestige Brands Holdings, Inc. — Class A*		70		738
Weis Markets, Inc.		20		673
Elizabeth Arden, Inc.*		50		630
Pricesmart, Inc.		30		620
Andersons, Inc.		37		610
Boston Beer Company, Inc. — Class A*		20		568
Diamond Foods, Inc.		28		564
Alliance One International, Inc.*		190		559
Star Scientific, Inc.*		138		529
Ingles Markets, Inc. — Class A		30		528
Zhongpin, Inc.*		40		480
Great Atlantic & Pacific Tea Company, Inc*		76		477
Coca-Cola Bottling Company Consolidated		10		460
Imperial Sugar Company, Inc.		28		402
Griffin Land & Nurseries, Inc.		10		369
Village Super Market		6		344
USANA Health Sciences, Inc.*		10		342
American Dairy, Inc.*		20		301
China Sky One Medical, Inc.*		18		288
Susser Holdings Corp.*		20		266
Farmer Brothers Co.		10		249
Alico, Inc.		6		246
Calavo Growers, Inc.		20		230
Synutra International, Inc.*		20		220
B&G Foods, Inc.		40		216
Inter Parfums, Inc.		27		207
National Beverage Corp.*		20		180
Omega Protein Corp.*		40		160
Schiff Nutrition International, Inc.*		16		96
Lifeway Foods, Inc.*		10		90
HQ Sustainable Maritime Industries, Inc.*		10		78
Mannatech, Inc.		30		74
Reddy Ice Holdings, Inc.		45		65
AgFeed Industries, Inc.*		38		61
Total Consumer Staples				61,294
MATERIALS 1.7%
Compass Minerals International, Inc.		68		3,989
Royal Gold, Inc.		60		2,953
Olin Corp.		160		2,893

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    71

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Rock-Tenn Co. — Class A		80	$	2,734
Silgan Holdings, Inc.		50		2,391
Sensient Technologies Corp.		96		2,293
Texas Industries, Inc.		50		1,725
Minerals Technologies, Inc.		40		1,636
H.B. Fuller Co.		100		1,611
Worthington Industries, Inc.		140		1,543
OM Group, Inc.*		70		1,478
Calgon Carbon Corp.*		90		1,382
Arch Chemicals, Inc.		48		1,251
Amcol International Corp.		50		1,048
NewMarket Corp.		30		1,047
Coeur d’Alene Mines Corp.*		1,170		1,030
Wausau Paper Corp.		90		1,030
A. Schulman, Inc.		60		1,020
Rockwood Holdings, Inc.*		90		972
Balchem Corp.		37		922
Deltic Timber Corp.		20		915
Solutia, Inc.*		200		900
Glatfelter		96		893
W.R. Grace & Co.*		146		872
Koppers Holdings, Inc.		40		865
Hecla Mining Co.*		270		756
Zep, Inc.		38		734
Haynes International, Inc.*		28		689
Kaiser Aluminum Corp.		30		676
RTI International Metals, Inc.*		46		658
Westlake Chemical Corp.		40		652
PolyOne Corp.*		200		630
Ferro Corp.		89		627
Schweitzer-Mauduit International, Inc.		30		601
Headwaters, Inc.*		88		594
Zoltek Companies, Inc.*		60		539
Allied Nevada Gold Corp.*		100		506
Brush Engineered Materials, Inc.*		38		483
Myers Industries, Inc.		60		480
Stepan Co.		10		470
American Vanguard Corp.		40		468
Spartech Corp.		70		438
A.M. Castle & Co.		40		433
Olympic Steel, Inc.		20		407
Innophos Holdings, Inc.		20		396
Stillwater Mining Co.*		76		375
Graphic Packaging Holding Co.*		310		353
Louisiana-Pacific Corp.		220		343
LSB Industries, Inc.*		40		333
Landec Corp.*		50		329
Quaker Chemical Corp.		20		329
Horsehead Holding Corp.*		70		329
GenTek, Inc.*		20		301
Innospec, Inc.		50		295
Buckeye Technologies, Inc.*		80		291
U S Concrete, Inc.*		80		269

			MARKET
	SHARES		VALUE
Neenah Paper, Inc.		30	$	265
Penford Corp.		20		202
ShengdaTech, Inc.*		56		197
ICO, Inc.*		58		183
AEP Industries, Inc.*		10		176
Clearwater Paper Corp.*		20		168
General Moly, Inc.*		130		153
Universal Stainless & Alloy*		10		145
Bway Holding Co.*		18		143
NL Industries, Inc.		10		134
Apex Silver Mines Ltd.*		129		126
Flotek Industries, Inc.*		50		126
Mercer International, Inc.*		56		108
KapStone Paper and Packaging Corp.*		40		95
General Steel Holdings, Inc.*		20		79
AbitibiBowater, Inc.*		110		52
China Precision Steel, Inc.*		40		50
Sutor Technology Group Ltd.*		20		46
Boise, Inc.*		80		34
Verso Paper Corp.		27		28
Total Materials				56,687
TELECOMMUNICATION SERVICES 0.5%
tw telecom Inc.*		310		2,626
NTELOS Holdings Corp.		56		1,381
Shenandoah Telecommunications Co.		48		1,346
Syniverse Holdings, Inc.*		110		1,313
Centennial Communications Corp.*		140		1,128
Premiere Global Services, Inc.*		130		1,119
Cincinnati Bell, Inc.*		520		1,004
Iowa Telecommunications Services, Inc.		70		1,000
Alaska Communications Systems Group, Inc.		90		844
Cbeyond, Inc.*		50		799
General Communication, Inc. — Class A*		96		777
Cogent Communications Group, Inc.*		97		633
Fairpoint Communications, Inc.		190		623
Consolidated Communications Holdings, Inc.		50		594
USA Mobility, Inc.*		50		579
Atlantic Tele-Network, Inc.		19		505
Global Crossing*		60		476
PAETEC Holding Corp.*		260		374
iPCS, Inc. — Class A*		40		274
ICO Global Communications Holdings Ltd.*		220		249
Ibasis, Inc.*		70		99
Hungarian Telephone & Cable Corp.*		10		86
Vonage Holdings Corp.*		107		71

72    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     RUSSELL 2000^® 2x STRATEGY FUND

			MARKET
	SHARES		VALUE
Virgin Mobile USA, Inc. — Class A*		60	$	50
TerreStar Corp.*		120		48
IDT Corp. — Class B*		118		47
FiberTower Corp.*		260		42
Globalstar, Inc.*		88		18
Total Telecommunication Services				18,105
Total Common Stocks (Cost $1,757,002)				1,570,771
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 29.9%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	261,740		261,740
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		261,740		261,740
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		261,740		261,740
Credit Suisse Group
issued 12/31/08 at 0.03% due 01/02/09		236,238		236,238
Total Repurchase Agreements (Cost $1,021,458)				1,021,458
Total Investments 75.8% (Cost $2,778,460)			$	2,592,229
Other Assets in Excess of Liabilities – 24.2%			$	829,247
Net Assets – 100.0%			$	3,421,476

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $295,800)		6	$	(809	)
		UNITS
EQUITY INDEX SWAP AGREEMENTS
Goldman Sachs International January 2009 Russell 2000 Index Swap, Terminating 01/08/09** (Notional Market Value $3,317,920)		6,643	$	188,350
Credit Suisse Capital, LLC March 2009 Russell 2000 Index Swap, Terminating 03/26/09** (Notional Market Value $1,724,942)		3,454		79,838
(Total Notional Market Value $5,042,862)			$	268,188

*	Non-Income Producing Security.
**	Total Return based on Russell 2000 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    73

SCHEDULE OF INVESTMENTS

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 65.7%
FINANCIALS 15.4%
Realty Income Corp.		1,250	$	28,938
Aspen Insurance Holdings Ltd.		1,050		25,462
Senior Housing Properties Trust		1,410		25,267
First Niagara Financial Group, Inc.		1,460		23,608
Platinum Underwriters Holdings Ltd.		600		21,648
Highwoods Properties, Inc.		780		21,341
Validus Holdings Ltd.		790		20,666
ProAssurance Corp.*		390		20,584
FirstMerit Corp.		990		20,384
Montpelier Re Holdings Ltd.		1,150		19,308
Knight Capital Group, Inc. — Class A*		1,160		18,734
UMB Financial Corp.		380		18,673
Westamerica Bancorporation		360		18,414
Washington Real Estate Investment Trust		640		18,112
NewAlliance Bancshares, Inc.		1,340		17,648
IPC Holdings Ltd.		570		17,043
Healthcare Realty Trust, Inc.		720		16,906
Susquehanna Bancshares, Inc.		1,060		16,865
National Retail Properties, Inc.		960		16,502
Apollo Investment Corp.		1,750		16,292
Omega Healthcare Investors, Inc.		1,010		16,130
Corporate Office Properties Trust SBI		520		15,964
Home Properties, Inc.		390		15,834
United Bankshares, Inc.		470		15,613
Selective Insurance Group, Inc.		659		15,111
Old National Bancorp		810		14,710
Stifel Financial Corp.*		320		14,672
Tanger Factory Outlet Centers, Inc.		388		14,597
Hancock Holding Co.		320		14,547
Zenith National Insurance Corp.		460		14,522
Cathay General Bancorp		609		14,464
Greenhill & Company, Inc.		206		14,373
First Financial Bankshares, Inc.		260		14,355
MFA Mortgage Investments, Inc.		2,430		14,313
Glacier Bancorp, Inc.		750		14,265
National Penn Bancshares, Inc.		980		14,220
Prosperity Bancshares, Inc.		480		14,203
RLI Corp.		230		14,067
Odyssey Re Holdings Corp.		270		13,989
FNB Corp.		1,059		13,979
International Bancshares Corp.		630		13,753
Trustmark Corp.		610		13,170
Mid-America Apartment Communities, Inc.		350		13,006

			MARKET
	SHARES		VALUE
First Commonwealth Financial Corp.		1,050	$	12,999
Argo Group International Holdings Ltd.*		380		12,890
Potlatch Corp.		480		12,485
East-West Bancorp, Inc.		777		12,409
Signature Bank*		430		12,337
Max Capital Group Ltd.		690		12,213
MB Financial Corp.		430		12,018
First Midwest Bancorp, Inc.		600		11,982
Entertainment Properties Trust		397		11,831
BioMed Realty Trust, Inc.		990		11,603
Provident Financial Services, Inc.		730		11,169
Eastgroup Properties, Inc.		307		10,923
NBT Bancorp, Inc.		390		10,904
Extra Space Storage, Inc.		1,049		10,826
Franklin Street Properties Corp., Inc.		730		10,767
Umpqua Holding Corp.		740		10,708
DCT Industrial Trust, Inc.		2,110		10,677
American Campus Communities, Inc.		520		10,650
S&T Bancorp, Inc.		290		10,295
Employers Holdings, Inc.		610		10,065
Park National Corp.		140		10,045
Cash America International, Inc.		360		9,846
Sovran Self Storage, Inc.		270		9,720
First Bancorp Puerto Rico		870		9,692
Community Bank System, Inc.		397		9,683
CVB Financial Corp.		810		9,639
SVB Financial Group*		367		9,626
Pacific Capital Bancorp		570		9,622
IBERIABANK Corp.		200		9,600
Equity Lifestyle Properties, Inc.		250		9,590
UCBH Holdings, Inc.		1,360		9,357
Delphi Financial Group, Inc. — Class A		507		9,349
Piper Jaffray Companies, Inc.*		230		9,145
Inland Real Estate Corp.		700		9,086
Interactive Brokers Group, Inc. — Class A*		500		8,945
Post Properties, Inc.		540		8,910
WesBanco, Inc.		326		8,870
TrustCo Bank Corp.		930		8,844
United Fire & Casualty Co.		280		8,700
Navigators Group, Inc.*		156		8,566
PHH Corp.*		670		8,529
PrivateBancorp, Inc.		260		8,440
Infinity Property & Casualty Corp.		180		8,411
Pinnacle Financial Partners, Inc.*		280		8,347
Chemical Financial Corp.		290		8,085
PacWest Bancorp		300		8,070
PS Business Parks, Inc.		180		8,039
Assured Guaranty Ltd.		690		7,866

74    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Brookline Bancorp, Inc.		719	$	7,657
Harleysville National Corp.		530		7,653
Safety Insurance Group, Inc.		200		7,612
Investors Real Estate Trust		710		7,604
Ares Capital Corp.		1,190		7,533
Cousins Properties, Inc.		540		7,479
Capstead Mortgage Corp.		690		7,431
National Health Investors, Inc.		270		7,406
KBW, Inc.*		316		7,268
Investors Bancorp, Inc.*		540		7,252
Financial Federal Corp.		310		7,214
Ezcorp, Inc. — Class A*		470		7,149
Anworth Mortgage Asset Corp.		1,100		7,073
Equity One, Inc.		399		7,062
optionsXpress Holdings, Inc.		520		6,947
Tower Group, Inc.		246		6,940
City Holding Co.		198		6,886
Bank Mutual Corp.		590		6,809
United Community Banks, Inc.		500		6,791
Community Trust Bancorp, Inc.		180		6,615
TowneBank		260		6,445
Portfolio Recovery Associates, Inc.*		190		6,430
Provident New York Bancorp		490		6,076
Wintrust Financial Corp.		290		5,965
Redwood Trust, Inc.		400		5,964
DiamondRock Hospitality Co.		1,170		5,932
National Western Life Insurance Co. — Class A		35		5,921
Chimera Investment Corp.		1,676		5,782
First Financial Corp.		140		5,739
Acadia Realty Trust		400		5,708
First Financial Bancorp		460		5,699
SWS Group, Inc.		300		5,685
First Busey Corp.		310		5,654
Sterling Savings Bank		640		5,632
LTC Properties, Inc.		276		5,597
Castlepoint Holdings Ltd.		410		5,560
Harleysville Group, Inc.		160		5,557
Sterling Bancshares, Inc.		900		5,472
LaSalle Hotel Properties		490		5,414
Hilltop Holdings, Inc.*		550		5,357
Pico Holdings, Inc.*		200		5,316
Univest Corp. of Pennsylvania		165		5,303
Independent Bank Corp.		200		5,232
Medical Properties Trust Inc.		820		5,174
Colonial BancGroup, Inc.		2,480		5,134
State Auto Financial Corp.		170		5,110
Hatteras Financial Corp.		190		5,054
Universal Health Realty Income Trust		150		4,936
Stewart Information Services Corp.		210		4,933

			MARKET
	SHARES		VALUE
Simmons First National Corp.		167	$	4,921
First Merchants Corp.		220		4,886
Banco Latinoamericano de Exportaciones SA		340		4,882
Alexander’s, Inc.		19		4,843
Colonial Properties Trust		580		4,831
SCBT Financial Corp.		140		4,830
Bancfirst Corp.		90		4,763
Saul Centers, Inc.		120		4,740
StellarOne Corp.		280		4,732
Amerisafe, Inc.*		230		4,722
American Equity Investment Life Holding Co.		670		4,690
Lexington Realty Trust		930		4,650
Berkshire Hills Bancorp, Inc.		150		4,629
American Physicians Capital, Inc.		96		4,618
Phoenix Companies, Inc.		1,410		4,611
Citizens Banking Corp.		1,547		4,610
FPIC Insurance Group, Inc.*		105		4,597
Horace Mann Educators Corp.		500		4,595
Ambac Financial Group, Inc.		3,530		4,589
First Cash Financial Services, Inc.*		240		4,574
Boston Private Financial Holdings, Inc.		667		4,562
Greenlight Capital Re Ltd. — Class A*		350		4,546
Texas Capital Bancshares, Inc.*		340		4,542
Beneficial Mutual Bancorp, Inc.*		400		4,500
Northwest Bancorp, Inc.		210		4,490
Citizens, Inc.*		460		4,462
Enstar Group*		75		4,435
Getty Realty Corp.		210		4,423
SY Bancorp, Inc.		160		4,400
Renasant Corp.		258		4,394
Meadowbrook Insurance Group, Inc.		680		4,379
Crawford & Co. — Class B*		300		4,362
Bank of the Ozarks, Inc.		147		4,357
Sandy Spring Bancorp, Inc.		198		4,322
Home Bancshares, Inc.		160		4,312
Suffolk Bancorp		120		4,312
Prospect Capital Corp.		360		4,309
1st Source Corp.		180		4,253
Triko Bancshares		170		4,245
Capital Southwest Corp.		39		4,218
Union Bankshares Corp.		170		4,216
Forestar Real Estate Group, Inc.*		440		4,189
eHealth, Inc.*		307		4,077
Tompkins Financial Corp.		70		4,056
First Industrial Realty Trust, Inc.		537		4,054
Ocwen Financial Corp.*		440		4,039
Westfield Financial, Inc.		390		4,025

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    75

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
CNA Surety Corp.*		208	$	3,994
Urstadt Biddle Properties, Inc.		250		3,982
Provident Bankshares Corp.		410		3,961
World Acceptance Corp.*		197		3,893
MainSource Financial Group, Inc.		250		3,875
Riskmetrics Group, Inc.*		260		3,871
Dime Community Bancshares		290		3,857
South Financial Group, Inc.		890		3,845
WSFS Financial Corp.		80		3,839
Sunstone Hotel Investors, Inc.		600		3,714
Capital City Bank Group, Inc.		136		3,705
First Community Bancshares, Inc.		106		3,696
Radian Group, Inc.		990		3,643
Flagstone Reinsurance Holdings		370		3,615
thinkorswim Group, Inc.*		637		3,580
Lakeland Financial Corp.		150		3,573
Southside Bancshares, Inc.		150		3,525
Central Pacific Financial Corp.		350		3,514
Tejon Ranch Co.*		140		3,464
Parkway Properties, Inc.		190		3,420
Washington Trust Bancorp, Inc.		170		3,357
Cedar Shopping Centers, Inc.		470		3,328
First Bancorp		180		3,303
United Financial Bancorp, Inc.		218		3,301
Heartland Financial USA, Inc.		160		3,294
MVC Capital, Inc.		300		3,291
Compass Diversified Trust		290		3,262
BancTrust Financial Group, Inc.		218		3,218
Pennsylvania Real Estate Investment Trust		430		3,203
Hercules Technology Growth Capital, Inc.		400		3,168
First Potomac Realty Trust		340		3,162
Nelnet, Inc. — Class A		218		3,124
Flushing Financial Corp.		260		3,110
MarketAxess Holdings, Inc.*		380		3,101
Dollar Financial Corp.*		300		3,090
Sterling Bancorp		218		3,059
Life Partners Holdings, Inc.		70		3,055
SeaBright Insurance Holdings, Inc.*		260		3,052
LaBranche & Company, Inc.*		630		3,018
Republic Bancorp, Inc.		110		2,992
United America Indemnity Ltd. — Class A*		230		2,946
Guaranty Financial Group, Inc.*		1,120		2,923
Danvers Bancorp, Inc.		217		2,901
GFI Group, Inc.		810		2,867
Consolidated-Tomoka Land Co.		75		2,864
First Financial Holdings, Inc.		140		2,834
Sun Communities, Inc.		200		2,800
Peapack Gladstone Financial Corp.		105		2,797
Kearny Financial Corp.		218		2,790

			MARKET
	SHARES		VALUE
Abington Bancorp, Inc.		300	$	2,775
Lakeland Bancorp, Inc.		246		2,770
Arrow Financial Corp.		110		2,765
PMA Capital Corp.*		390		2,761
Nara Bancorp, Inc.		280		2,752
Aircastle Ltd.		570		2,725
Western Alliance Bancorp, Inc.*		270		2,724
U-Store-It Trust		610		2,714
Northfield Bancorp, Inc.		240		2,700
Presidential Life Corp.		270		2,670
NorthStar Realty Finance Corp.		680		2,659
ESSA Bancorp, Inc.		187		2,642
Columbia Banking Systems, Inc.		220		2,625
First Financial Northwest, Inc.		280		2,615
Kansas City Life Insurance Co.		60		2,601
TradeStation Group, Inc.*		400		2,580
West Bancorporation, Inc.		210		2,572
First Mercury Financial Corp.*		180		2,567
FBL Financial Group, Inc. — Class A		165		2,549
Frontier Financial Corp.		580		2,529
Oritani Financial Corp.*		150		2,527
Peoples Bancorp, Inc.		130		2,487
American Capital Agency Corp.		116		2,478
BankFinancial Corp.		240		2,446
GAMCO Investors, Inc. — Class A		89		2,431
Camden National Corp.		90		2,428
Donegal Group, Inc. — Class A		140		2,348
Southwest Bancorp, Inc.		180		2,333
Shore Bancshares, Inc.		96		2,303
Cohen & Steers, Inc.		206		2,264
NGP Capital Resources Co.		270		2,260
ViewPoint Financial Group		140		2,247
CoBiz Financial, Inc.		230		2,240
First Bancorp, Inc.		110		2,188
Amtrust Financial Services, Inc.		188		2,181
Citizens & Northern Corp.		110		2,172
Green Bankshares, Inc.		160		2,166
Wilshire Bancorp, Inc.		238		2,161
Enterprise Financial Services Corp.		140		2,134
Ames National Corp.		80		2,123
Gladstone Capital Corp.		260		2,103
Ameris Bancorp		170		2,014
Baldwind & Lyons, Inc. — Class B		110		2,001
Yadkin Valley Financial Corp.		140		1,995
RAIT Financial Trust		760		1,976
Old Second Bancorp, Inc.		170		1,972
Farmers Capital Bank Corp.		80		1,954
Diamond Hill Investment Group, Inc.		30		1,950
The PMI Group, Inc.		1,000		1,950

76    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Pacific Continental Corp.		130	$	1,946
Maiden Holdings Ltd.		600		1,878
Smithtown Bancorp, Inc.		117		1,876
Westwood Holdings Group, Inc.		66		1,875
Sierra Bancorp		89		1,869
Centerstate Banks of Florida, Inc.		110		1,869
Financial Institutions, Inc.		130		1,865
Avatar Holdings Inc.*		70		1,856
Calamos Asset Management, Inc. — Class A		250		1,850
Mission West Properties		240		1,836
Cascade Bancorp.		270		1,822
Oriental Financial Group		300		1,815
Agree Realty Corp.		100		1,813
Education Realty Trust, Inc.		347		1,811
EMC Insurance Group, Inc.		70		1,795
Hersha Hospitality Trust		590		1,770
Oceanfirst Financial Corp.		106		1,760
State Bancorp, Inc.		180		1,753
American Safety Insurance Holdings Ltd.*		130		1,717
Cardinal Financial Corp.		298		1,696
Banner Corp.		180		1,694
Monmouth Real Estate
Investment Corp. — Class A		240		1,680
Bryn Mawr Bank Corp.		80		1,608
Associated Estates Realty Corp.		176		1,607
Premierwest Bancorp		240		1,606
Anthracite Capital, Inc.		718		1,601
Penson Worldwide Company, Inc.*		210		1,600
Kite Realty Group Trust		286		1,590
BlackRock Kelso Capital Corp.		160		1,578
Pennsylvania Commerce Bancorp, Inc.*		59		1,573
Clifton Savings Bancorp, Inc.		130		1,542
Rockville Financial, Inc.		110		1,537
Strategic Hotels & Resorts, Inc.		910		1,529
FBR Capital Markets Corp.*		310		1,507
Evercore Partners, Inc. — Class A		120		1,499
National Financial Partners Corp.		490		1,490
Winthrop Realty Trust		136		1,474
Heritage Commerce Corp.		130		1,461
Sanders Morris Harris Group Inc.		240		1,438
National Interstate Corp.		80		1,430
FelCor Lodging Trust, Inc.		770		1,417
Cogdell Spencer, Inc.		150		1,404
Capitol Bancorp, Ltd.		180		1,404
Roma Financial Corp.		110		1,385
Medallion Financial Corp.		180		1,373
Sun Bancorp, Inc.*		180		1,348
Gladstone Investment Corp.		270		1,326
Ashford Hospitality Trust, Inc.		1,140		1,311
Guaranty Bancorp*		650		1,300

			MARKET
	SHARES		VALUE
Glimcher Realty Trust		460	$	1,293
Harris & Harris Group, Inc.*		320		1,264
First South Bancorp, Inc.		100		1,256
FCStone Group, Inc.*		280		1,240
West Coast Bancorp		186		1,226
Encore Capital Group, Inc.*		170		1,224
Care Investment Trust, Inc.		157		1,223
Meridian Interstate Bancorp, Inc.*		130		1,202
Seacoast Banking
Corporation of Florida		180		1,188
Ramco-Gershenson
Properties Trust		190		1,174
NewStar Financial, Inc.*		290		1,157
Thomas Weisel Partners Group, Inc.*		240		1,133
BGC Partners, Inc. — Class A		409		1,129
United Security Bancshares		96		1,112
CompuCredit Corp.*		200		1,106
First Marblehead Corp.*		847		1,093
NASB Financial, Inc.		40		1,080
Epoch Holding Corp.		140		1,063
Stratus Properties, Inc.*		80		997
Resource Capital Corp.		260		996
Advanta Corp.		470		982
Advance America Cash Advance Centers, Inc.		510		964
Credit Acceptance Corp.*		70		959
NYMAGIC, Inc.		50		953
Ladenburg Thalmann Financial Services, Inc.*		1,319		950
Hanmi Financial Corp.		460		948
CapLease, Inc.		547		946
PennantPark Investment Corp.		260		939
Asset Acceptance Capital Corp.*		180		920
Broadpoint Securities Group, Inc.*		308		915
Patriot Capital Funding, Inc.		250		910
Fifth Street Finance Corp.		120		906
Amcore Financial, Inc.		250		905
Kayne Anderson Energy Development Co.		120		901
City Bank		170		884
Encore Bancshares, Inc.*		80		880
Fox Chase Bancorp, Inc.*		80		880
One Liberty Properties, Inc.		100		880
Home Federal Bancorp, Inc.		80		858
Maui Land & Pineapple Company, Inc.*		60		806
First Place Financial Corp.		210		804
US Global Investors, Inc. — Class A		160		782
Thomas Properties Group, Inc.		290		751
Kohlberg Capital Corp.		206		750
Capital Trust, Inc. — Class A		199		716
Maguire Properties, Inc.*		470		686

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    77

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
MCG Capital Corp.		930	$	660
Meruelo Maddux Properties, Inc.*		530		657
Gramercy Capital Corp.		510		653
Anchor BanCorp Wisconsin, Inc.		230		635
Santander BanCorp		50		625
Hallmark Financial Services, Inc.*		70		614
First Acceptance Corp.*		206		597
Brooklyn Federal Bancorp, Inc.		40		562
Newcastle Investment Corp.		650		546
Grubb & Ellis Co.		430		533
Flagstar Bancorp, Inc.*		740		525
Doral Financial Corp.*		70		525
Corus Bankshares, Inc.		457		507
Arbor Realty Trust, Inc.		170		502
Resource America, Inc. — Class A		117		468
International Assets Holding Corp.*		50		429
Federal Agricultural Mortgage Corp.		120		420
Midwest Banc Holdings, Inc.		270		378
W Holding Company, Inc.		35		361
Integra Bank Corp.		250		343
Pzena Investment Management, Inc. — Class A		80		338
Primus Guaranty Ltd.*		290		331
DuPont Fabros Technology, Inc.		150		311
Friedman Billings Ramsey Group, Inc. — Class A*		1,820		309
Waterstone Financial, Inc.*		90		302
United Community Financial Corp.		331		298
FirstFed Financial Corp.*		170		298
Independence Holding Co.		80		289
JER Investors Trust, Inc.		280		260
Cardtronics, Inc.*		160		206
Ampal American Israel — Class A*		240		139
FX Real Estate and Entertainment, Inc.*		130		20
Total Financials				2,155,838
INDUSTRIALS 11.1%
Waste Connections, Inc.*		983		31,033
Watson Wyatt & Company Holdings		520		24,866
Wabtec Corp.		600		23,850
Clarcor, Inc.		620		20,572
Teledyne Technologies, Inc.*		440		19,602
Moog, Inc. — Class A*		520		19,016
EMCOR Group, Inc.*		830		18,617
Curtiss-Wright Corp.		547		18,264
Granite Construction, Inc.		410		18,011
Acuity Brands, Inc.		500		17,455
Tetra Tech, Inc.*		720		17,388

			MARKET
	SHARES		VALUE
UAL Corp.		1,550	$	17,081
Woodward Governor Co.		720		16,574
Clean Harbors, Inc.*		240		15,226
Regal-Beloit Corp.		400		15,196
JetBlue Airways Corp.*		2,130		15,123
Huron Consulting Group, Inc.*		260		14,890
Brady Corp. — Class A		620		14,849
Perini Corp.*		620		14,496
Kaydon Corp.		417		14,324
Orbital Sciences Corp.*		720		14,062
Energy Conversion Devices, Inc.*		550		13,865
TransDigm Group, Inc.*		410		13,764
Esterline Technologies Corp.*		360		13,640
SkyWest, Inc.		720		13,392
Nordson Corp.		410		13,239
Actuant Corp. — Class A		690		13,124
ESCO Technologies, Inc.*		320		13,104
Alaska Air Group, Inc.*		440		12,870
Simpson Manufacturing Company, Inc.		460		12,770
GrafTech International Ltd.*		1,470		12,230
HUB Group, Inc. — Class A*		450		11,938
Mueller Water Products, Inc. — Class A		1,420		11,928
Belden, Inc.		570		11,902
Genesee & Wyoming, Inc. — Class A*		380		11,590
Mueller Industries, Inc.		457		11,462
Geo Group, Inc.*		630		11,359
Knight Transportation, Inc.		700		11,284
Watsco, Inc.		287		11,021
Heartland Express, Inc.		690		10,874
US Airways Group, Inc.*		1,400		10,822
Briggs & Stratton Corp.		610		10,730
Heico Corp.		270		10,484
ABM Industries, Inc.		540		10,287
Baldor Electric Co.		570		10,174
Otter Tail Power Co.		430		10,032
Applied Industrial Technologies, Inc.		520		9,838
Old Dominion Freight Line, Inc.*		340		9,676
United Stationers, Inc.*		287		9,612
Deluxe Corp.		630		9,425
Navigant Consulting, Inc.*		590		9,363
Rollins, Inc.		510		9,221
Resources Connection, Inc.*		560		9,173
Mine Safety Appliances Co.		380		9,086
Herman Miller, Inc.		690		8,991
Watts Industries, Inc. — Class A		360		8,989
Werner Enterprises, Inc.		517		8,965
AAR Corp.*		479		8,818
MPS Group, Inc.*		1,160		8,735
Hexcel Corp.*		1,180		8,720

78    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
HNI Corp.		550	$	8,712
Barnes Group, Inc.		590		8,555
Forward Air Corp.		350		8,494
American Superconductor Corp.*		520		8,481
Healthcare Services Group		530		8,443
Arkansas Best Corp.		280		8,431
Triumph Group, Inc.		198		8,407
Allegiant Travel Co.*		170		8,257
American Science & Engineering, Inc.		110		8,136
CoStar Group, Inc.*		240		7,906
Franklin Electric Company, Inc.		280		7,871
SYKES Enterprises, Inc.*		410		7,839
Beacon Roofing Supply, Inc.*		538		7,467
A.O. Smith Corp.		250		7,380
Ameron International Corp.		110		6,921
Astec Industries, Inc.*		219		6,861
Insituform Technologies, Inc. — Class A*		340		6,695
General Maritime Corp.		604		6,523
Korn/Ferry International, Inc.*		570		6,509
Ceradyne, Inc.*		320		6,499
AirTran Holdings, Inc.*		1,440		6,394
Team, Inc.*		230		6,371
Mobile Mini, Inc.*		430		6,201
Mcgrath Rentcorp		290		6,194
Viad Corp.		250		6,185
Mastec, Inc.*		530		6,137
Axsys Technologies, Inc.*		110		6,035
Circor International, Inc.		210		5,775
Layne Christensen Co.*		240		5,762
II-VI, Inc.*		300		5,727
Middleby Corp.*		210		5,727
Administaff, Inc.		260		5,637
Kaman Corp. — Class A		310		5,620
Evergreen Solar, Inc.*		1,760		5,614
Gorman-Rupp Co.		180		5,602
Robbins & Myers, Inc.		340		5,498
RBC Bearings, Inc.*		270		5,476
Tredegar Corp.		300		5,454
Knoll, Inc.		600		5,412
Universal Forest Products, Inc.		198		5,328
EnPro Industries, Inc.*		246		5,299
Badger Meter, Inc.		180		5,224
Comfort Systems USA, Inc.		490		5,223
Cubic Corp.		190		5,168
TrueBlue, Inc.*		537		5,139
Exponent, Inc.*		170		5,114
Griffon Corp.*		540		5,038
Force Protection, Inc.*		838		5,011
RSC Holdings, Inc.*		580		4,942
G & K Services, Inc. — Class A		240		4,853
Federal Signal Corp.		590		4,844
Raven Industries, Inc.		200		4,820

			MARKET
	SHARES		VALUE
Aerovironment, Inc.*		130	$	4,785
Lindsay Manufacturing Co.		150		4,768
CBIZ, Inc.*		550		4,757
Northwest Pipe Co.*		110		4,687
Albany International Corp. — Class A		360		4,622
Republic Airways Holdings, Inc.*		430		4,588
DynCorp International, Inc. — Class A*		298		4,521
Pacer International, Inc.		430		4,485
Heidrick & Struggles International, Inc.		208		4,480
Blount International, Inc.*		470		4,456
Genco Shipping & Trading Ltd.		300		4,440
School Specialty, Inc.*		230		4,398
Advisory Board Co.*		196		4,371
Quanex Building Products Corp.		457		4,282
Interline Brands, Inc.*		400		4,252
GeoEye, Inc.*		218		4,192
Encore Wire Corp.		220		4,171
Kelly Services, Inc. — Class A		319		4,150
Amerco, Inc.*		120		4,144
LB Foster Co. — Class A*		130		4,066
Taser International, Inc.*		770		4,066
American Ecology Corp.		200		4,046
Dycom Industries, Inc.*		490		4,028
Gibraltar Industries, Inc.		330		3,940
NCI Building Systems, Inc.*		240		3,912
Eagle Bulk Shipping Inc.		570		3,887
Ennis Inc.		319		3,863
Stanley, Inc.*		106		3,839
ATC Technology Corp.*		260		3,804
CRA International, Inc.*		140		3,770
AZZ, Inc.*		150		3,765
EnerSys*		340		3,740
Apogee Enterprises, Inc.		360		3,730
Chart Industries, Inc.*		346		3,678
Marten Transport Ltd.*		190		3,602
Ener1, Inc.*		500		3,575
Rush Enterprises, Inc. — Class A*		410		3,514
Titan International, Inc.		420		3,465
Hawaiian Holdings, Inc.*		530		3,381
Kimball International, Inc. — Class B		390		3,358
AAON, Inc.		160		3,341
Michael Baker Corp.*		89		3,285
FuelCell Energy, Inc.*		840		3,259
Cascade Corp.		106		3,165
Trex Company, Inc.*		190		3,127
Columbus McKinnon Corp. — Class A*		229		3,126
American Reprographics Co.*		450		3,105
Interface, Inc. — Class A		660		3,062

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    79

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Tennant Co.		198	$	3,049
Argon ST, Inc.*		160		3,018
Aceto Corp.		300		3,003
Standex International Corp.		150		2,976
Atlas Air Worldwide Holdings Company, Inc.*		157		2,967
Dynamic Materials Corp.		150		2,896
Kforce, Inc.*		377		2,895
Colfax Corp.*		270		2,805
Ladish Co., Inc.*		200		2,770
Freightcar America, Inc.		150		2,740
Applied Signal Technology, Inc.		150		2,691
DHT Maritime, Inc.		480		2,659
Sun Hydraulics Corp.		140		2,638
Consolidated Graphics, Inc.*		116		2,626
Cenveo, Inc.*		590		2,625
NACCO Industries, Inc. — Class A		70		2,619
Powell Industries, Inc.*		90		2,612
Orion Marine Group, Inc.*		270		2,608
Cornell Companies, Inc.*		140		2,603
Sterling Construction Company, Inc.*		140		2,596
Pike Electric Corp.*		210		2,583
Gencorp, Inc.*		700		2,576
Innerworkings, Inc.*		390		2,555
TAL International Group, Inc.		180		2,538
Altra Holdings, Inc.*		320		2,531
On Assignment, Inc.*		440		2,495
Duff & Phelps Corp. — Class A*		130		2,486
Fuel Tech, Inc.*		230		2,436
Furmanite Corp.*		450		2,426
Met-Pro Corp.		180		2,398
K-Tron International, Inc.*		30		2,397
American Woodmark Corp.		130		2,370
Insteel Industries, Inc.		208		2,348
Courier Corp.		130		2,327
EnergySolutions, Inc.		410		2,317
ACCO Brands Corp.*		670		2,312
Celadon Group, Inc.*		270		2,303
Ampco-Pittsburgh Corp.		105		2,279
Schawk, Inc.		190		2,177
Ducommun, Inc.		130		2,171
M&F Worldwide Corp.*		140		2,163
Teekay Tankers Ltd.		170		2,159
American Commercial Lines, Inc.*		440		2,156
LaBarge, Inc.*		150		2,153
Kadant, Inc.*		157		2,116
Herley Industries, Inc.*		170		2,088
LECG Corp.*		310		2,080
Multi-Color Corp.		130		2,057
Odyssey Marine Exploration, Inc.*		637		2,051

			MARKET
	SHARES		VALUE
Hill International, Inc.*		290	$	2,042
Great Lakes Dredge & Dock Corp. Co.		490		2,034
Houston Wire & Cable Co.		217		2,020
Ultralife Batteries, Inc.*		150		2,012
YRC Worldwide, Inc.*		700		2,009
ICF International, Inc.*		80		1,966
VSE Corp.		50		1,962
Bowne & Company, Inc.		330		1,940
Standard Parking Corp.*		100		1,934
Tecumseh Products Company — Class A*		200		1,916
Waste Services Inc.*		290		1,908
CDI Corp.		147		1,902
Saia, Inc.*		170		1,846
First Advantage Corp. — Class A*		130		1,840
Capstone Turbine Corp.*		2,140		1,798
International Shipholding Corp.		70		1,773
3D Systems Corp.*		217		1,723
Wabash National Corp.		380		1,710
Dynamex, Inc.*		110		1,623
Standard Register Co.		180		1,607
Vicor Corp.		240		1,586
LSI Industries, Inc.		230		1,580
PMFG, Inc.*		159		1,520
H&E Equipment Services, Inc.*		197		1,519
Polypore International, Inc.*		200		1,512
Advanced Battery Technologies, Inc.*		538		1,431
Microvision, Inc.*		840		1,411
TurboChef Technologies, Inc.*		286		1,404
Patriot Transportation Holding, Inc.*		20		1,401
Spherion Corp.*		630		1,392
Preformed Line Products Co.		30		1,381
Energy Recovery, Inc.*		181		1,372
Greenbrier Companies, Inc.		196		1,347
TBS International Ltd. — Class A*		130		1,304
Graham Corp.		120		1,298
Horizon Lines, Inc. — Class A		367		1,281
Textainer Group Holdings Ltd.		120		1,272
DXP Enterprises, Inc.*		87		1,271
Titan Machinery, Inc.*		90		1,265
LMI Aerospace, Inc.*		110		1,251
Key Technology, Inc.*		65		1,228
Sauer, Inc.		140		1,225
Valence Technology, Inc.*		660		1,201
Alamo Group, Inc.		80		1,196
American Railcar Industries, Inc.		110		1,158
Volt Information Sciences, Inc.*		160		1,157
Lydall, Inc.*		200		1,150
Lawson Products, Inc.		50		1,143

80    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Casella Waste Systems, Inc. — Class A*		280	$	1,142
China Fire & Security Group, Inc.*		167		1,137
Thermadyne Holdings Corp.*		165		1,134
Flow International Corp.*		459		1,111
Power-One, Inc.*		920		1,095
GT Solar International, Inc.*		370		1,069
Hudson Highland Group, Inc.*		306		1,025
Plug Power, Inc.*		990		1,010
Universal Truckload Services, Inc.*		70		991
Hurco Companies, Inc.*		80		960
Fushi Copperweld, Inc.*		180		949
Flanders Corp.*		199		933
Ultrapetrol Bahamas Ltd.*		277		884
Integrated Electrical Services, Inc.*		100		876
EnerNOC, Inc.*		116		863
Omega Flex, Inc.		40		838
Twin Disc, Inc.		110		758
PRG-Schultz International, Inc.*		180		734
Harbin Electric, Inc.*		90		719
PowerSecure International, Inc.*		210		691
China BAK Battery, Inc.*		400		648
Beacon Power Corp.*		1,190		631
Amrep Corp. PLC*		20		626
Park-Ohio Holdings Corp.*		100		617
Orion Energy Systems Inc.*		110		595
China Architectural Engineering, Inc.*		230		566
ICT Group, Inc.*		106		485
Metalico, Inc.*		298		462
Coleman Cable Inc.*		100		453
Akeena Solar, Inc.*		258		444
NN, Inc.		190		435
COMSYS IT Partners, Inc.*		180		403
Protection One, Inc.*		80		382
United Capital Corp.*		20		363
Ascent Solar Technologies, Inc.*		90		338
Builders FirstSource, Inc.*		200		306
Dollar Thrifty Automotive Group, Inc.*		267		291
CAI International, Inc.*		90		285
Trimas Corp.*		180		248
Commercial Vehicle Group, Inc.*		258		240
Xerium Technologies, Inc.*		260		172
Medis Technologies Ltd.*		380		171
China Direct, Inc.*		80		116
Total Industrials				1,552,712
INFORMATION TECHNOLOGY 10.4%
Sybase, Inc.*		970		24,027
Parametric Technology Corp.*		1,420		17,963
Jack Henry & Associates, Inc.		920		17,857
Concur Technologies, Inc.*		530		17,395
CACI International, Inc. —
Class A*		370		16,683

			MARKET
	SHARES		VALUE
Micros Systems, Inc.*		1,000	$	16,320
InterDigital, Inc.*		560		15,400
Solera Holdings, Inc.*		630		15,183
Informatica Corp.*		1,090		14,966
Polycom, Inc.*		1,080		14,591
Perot Systems Corp. — Class A*		1,060		14,490
Comtech Telecommunications Corp.*		300		13,746
Mantech International Corp. — Class A*		250		13,547
PMC — Sierra, Inc.*		2,690		13,073
Gartner, Inc. — Class A*		730		13,016
Macrovision Solutions Corp.*		1,010		12,776
Microsemi Corp.*		970		12,261
Arris Group, Inc.*		1,510		12,004
TIBCO Software, Inc.*		2,290		11,885
Digital River, Inc.*		458		11,358
3Com Corp.*		4,960		11,309
Quest Software, Inc.*		890		11,205
Anixter International, Inc.*		370		11,144
Skyworks Solutions, Inc.*		2,000		11,080
j2 Global Communications, Inc.*		550		11,022
Tekelec*		800		10,672
Benchmark Electronics, Inc.*		830		10,599
Atheros Communications, Inc.*		730		10,446
ADTRAN, Inc.		690		10,267
Infinera Corp.*		1,140		10,214
Cybersource Corp.*		850		10,191
Fair Isaac Corp.		600		10,116
Intermec, Inc.*		760		10,093
VistaPrint Ltd.*		540		10,049
Blackboard, Inc.*		380		9,967
Progress Software Corp.*		510		9,823
Avocent Corp.*		548		9,815
Quality Systems, Inc.		218		9,509
EarthLink, Inc.*		1,350		9,126
MKS Instruments, Inc.*		610		9,022
TiVo, Inc.*		1,250		8,950
SRA International, Inc. — Class A*		517		8,918
Formfactor, Inc.*		600		8,760
Semtech Corp.*		760		8,565
FEI Co.*		450		8,487
Net 1 UEPS Technologies, Inc.*		610		8,357
Plexus Corp.*		490		8,305
Websense, Inc.*		550		8,233
Omniture, Inc.*		770		8,193
Cymer, Inc.*		370		8,107
Plantronics, Inc.		600		7,920
Riverbed Technology, Inc.*		690		7,859
MAXIMUS, Inc.		220		7,724
Data Domain, Inc.*		410		7,708
Wind River Systems, Inc.*		840		7,585
Ariba, Inc.*		1,050		7,570

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    81

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Cabot Microelectronics Corp.*		290	$	7,560
CSG Systems International, Inc.*		430		7,512
ViaSat, Inc.*		310		7,465
Blackbaud, Inc.		550		7,425
Rofin-Sinar Technologies, Inc.*		360		7,409
Power Integrations, Inc.		370		7,356
Emulex Corp.*		1,040		7,259
Cognex Corp.		490		7,252
ValueClick, Inc.*		1,060		7,250
EPIQ Systems, Inc.*		430		7,185
Take-Two Interactive Software, Inc.		950		7,182
Commvault Systems, Inc.*		530		7,107
Hittite Microwave Corp.*		240		7,070
Interwoven, Inc.*		560		7,056
Tessera Technologies, Inc.*		590		7,009
Synaptics, Inc.*		417		6,906
Lawson Software, Inc.*		1,450		6,873
Cogent, Inc.*		500		6,785
Euronet Worldwide, Inc.*		580		6,734
ACI Worldwide, Inc.*		420		6,678
Harmonic, Inc.*		1,160		6,508
Sycamore Networks, Inc.*		2,350		6,321
Coherent, Inc.*		290		6,223
Electronics for Imaging, Inc.*		647		6,185
Scansource, Inc.*		320		6,166
Acxiom Corp.		749		6,074
Triquint Semiconductor, Inc.*		1,760		6,054
Wright Express Corp.*		480		6,048
Rogers Corp.*		217		6,026
ATMI, Inc.*		390		6,018
L-1 Identity Solutions, Inc.*		889		5,992
Bankrate, Inc.*		157		5,966
SPSS, Inc.*		217		5,850
DealerTrack Holdings, Inc.*		490		5,826
MTS Systems Corp.		218		5,808
Mentor Graphics Corp.*		1,120		5,790
United Online, Inc.		950		5,766
Black Box Corp.		218		5,694
Tyler Technologies, Inc.*		470		5,631
Forrester Research, Inc.*		190		5,360
Heartland Payment Systems, Inc.		300		5,250
AsiaInfo Holdings, Inc.*		430		5,091
MercadoLibre, Inc.*		310		5,087
Imation Corp.		370		5,021
Adaptec, Inc.*		1,490		4,917
EMS Technologies, Inc.*		190		4,915
Netgear, Inc.*		430		4,906
Checkpoint Systems, Inc.*		490		4,822
Sapient Corp.*		1,080		4,795
Manhattan Associates, Inc.*		297		4,696
Park Electrochemical Corp.		246		4,664
Netlogic Microsystems, Inc.*		210		4,622
Standard Microsystems Corp.*		280		4,575

			MARKET
	SHARES		VALUE
Brooks Automation, Inc.*		777	$	4,514
S1 Corp.*		570		4,497
Littelfuse, Inc.*		270		4,482
Micrel, Inc.		610		4,459
Ultimate Software Group, Inc.*		300		4,380
Starent Networks Corp.*		367		4,378
Zoran Corp.*		640		4,371
JDA Software Group, Inc.*		320		4,202
Advent Software, Inc.*		209		4,174
VeriFone Holdings, Inc.*		840		4,116
Palm, Inc.*		1,320		4,052
Avid Technology, Inc.*		370		4,037
Insight Enterprises, Inc.*		580		4,002
Monolithic Power Systems, Inc.*		316		3,985
DTS, Inc. — Class A*		217		3,982
Sonus Networks, Inc.*		2,510		3,966
Advanced Energy Industries, Inc.*		398		3,960
MicroStrategy, Inc. — Class A*		106		3,936
Cavium Networks, Inc.*		370		3,889
Silicon Image, Inc.*		900		3,780
Teletech Holdings, Inc.*		450		3,757
Daktronics, Inc.		400		3,744
RealNetworks, Inc.*		1,050		3,706
Syntel, Inc.		160		3,699
MSC.Software Corp.*		550		3,674
Actel Corp.*		310		3,633
Vocus, Inc.*		198		3,606
Faro Technologies, Inc.*		209		3,524
TeleCommunication Systems, Inc. — Class A*		410		3,522
Epicor Software Corp.*		730		3,504
Blue Coat Systems, Inc.*		410		3,444
THQ, Inc.*		820		3,436
Ultratech, Inc.*		287		3,433
Vasco Data Security International*		330		3,409
Universal Display Corp.*		360		3,402
Supertex, Inc.*		140		3,361
Cohu, Inc.		276		3,353
OmniVision Technologies, Inc.*		630		3,307
Constant Contact, Inc.*		246		3,260
Neutral Tandem, Inc.*		198		3,212
Netezza Corp.*		480		3,187
Bel Fuse, Inc. — Class B		150		3,180
Ciber, Inc.*		660		3,175
InfoSpace, Inc.		420		3,171
Methode Electronics, Inc. — Class A		470		3,168
IPG Photonics Corp.*		240		3,163
SAVVIS, Inc.*		458		3,156
Applied Micro Circuits Corp.*		800		3,144
Sigma Designs, Inc.*		330		3,135
Netscout Systems, Inc.*		360		3,103
Sanmina-SCI Corp.*		6,530		3,069
Exar Corp.*		460		3,068

82    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Entegris, Inc.*		1,400	$	3,066
GSI Commerce, Inc.*		290		3,051
Art Technology Group, Inc.*		1,580		3,049
Ixia*		520		3,006
Newport Corp.*		440		2,983
Amkor Technology, Inc.*		1,340		2,921
The Knot, Inc.*		350		2,912
Echelon Corp.*		357		2,910
Electro Rent Corp.		258		2,879
Vignette Corp.*		300		2,823
TNS, Inc.*		300		2,817
comScore, Inc.*		216		2,754
DG FastChannel, Inc.*		220		2,746
Seachange International, Inc.*		380		2,740
Transmeta Corp.*		150		2,730
TTM Technologies, Inc.*		520		2,709
Stratasys, Inc.*		250		2,688
Synchronoss Technologies, Inc.*		250		2,665
Brightpoint, Inc.*		610		2,654
OSI SYSTEMS INC*		190		2,632
RightNow Technologies, Inc.*		340		2,628
SonicWALL, Inc.*		660		2,627
Internet Capital Group, Inc.*		480		2,616
Digi International, Inc.*		320		2,595
Extreme Networks, Inc.*		1,090		2,551
Integral Systems, Inc.*		210		2,531
Terremark Worldwide, Inc.*		650		2,529
Move, Inc.*		1,580		2,528
RF Micro Devices, Inc.*		3,230		2,519
Utstarcom, Inc.*		1,360		2,516
3PAR, Inc.*		328		2,503
Taleo Corp.*		317		2,482
IXYS Corp.		300		2,478
Veeco Instruments, Inc.*		390		2,473
LoopNet, Inc.*		360		2,455
Cass Information Systems, Inc.		80		2,437
Symyx Technologies, Inc.*		410		2,435
NCI, Inc.*		80		2,410
ShoreTel, Inc.*		530		2,380
SYNNEX Corp.*		207		2,345
NIC, Inc.		490		2,254
CTS Corp.		409		2,254
DSP Group, Inc.*		280		2,246
Symmetricom, Inc.*		567		2,240
Kenexa Corp. — Class A*		280		2,234
Pegasystems, Inc.		180		2,225
Electro Scientific Industries, Inc.*		327		2,220
Volterra Semiconductor Corp.*		310		2,217
BigBand Networks, Inc.*		400		2,208
Silicon Storage Technology, Inc.*		960		2,198
Actuate Corp.*		740		2,190
Diodes, Inc.*		360		2,182
Anaren, Inc.*		180		2,151
Oplink Communications, Inc.*		250		2,150

			MARKET
	SHARES		VALUE
Lattice Semiconductor Corp.*		1,420	$	2,144
Cirrus Logic, Inc.*		800		2,144
Smith Micro Software, Inc.*		370		2,057
Ness Technologies, Inc.*		480		2,054
Loral Space & Communications, Inc.*		140		2,034
Immersion Corp.*		337		1,985
infoGROUP, Inc.		410		1,943
DemandTec, Inc.*		240		1,937
Bottomline Technologies, Inc.*		270		1,917
Ebix, Inc.*		80		1,912
Perficient, Inc.*		390		1,864
Double-Take Software, Inc.*		206		1,848
Switch & Data Facilities Company, Inc.*		250		1,848
Finisar Corp.*		4,850		1,843
Airvana, Inc.*		300		1,836
Super Micro Computer, Inc.*		290		1,836
Novatel Wireless, Inc.*		390		1,810
Mercury Computer Systems, Inc.*		280		1,767
iGate Corp.*		270		1,758
Ceva, Inc.*		250		1,750
Technitrol, Inc.		500		1,740
Kopin Corp.*		850		1,734
DivX, Inc.*		330		1,726
SuccessFactors, Inc.*		300		1,722
Marchex, Inc.		290		1,691
Advanced Analogic Technologies, Inc.*		559		1,688
Online Resources Corp.*		350		1,659
Compellent Technologies, Inc.*		170		1,654
ModusLink Global Solutions, Inc.*		570		1,647
Aruba Networks, Inc.*		640		1,632
STEC, Inc.*		380		1,619
Acme Packet, Inc.*		307		1,615
Rimage Corp.*		120		1,609
Harris Stratex Networks, Inc. — Class A*		310		1,600
PC-Tel, Inc.		240		1,577
Internet Brands, Inc. — Class A*		270		1,571
NVE Corp.*		60		1,568
China Security & Surveillance Technology, Inc.*		350		1,551
Internap Network Services Corp.*		620		1,550
Radisys Corp.*		280		1,548
Opnet Technologies, Inc.*		156		1,538
Liquidity Services Inc.*		180		1,499
Hackett Group, Inc.*		510		1,489
MRV Communications, Inc.*		1,930		1,486
Gerber Scientific, Inc.*		290		1,482
Pericom Semiconductor Corp.*		270		1,480
ExlService Holdings, Inc.*		170		1,457
Hughes Communications, Inc.*		90		1,435
Rackable Systems, Inc.*		360		1,418

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    83

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Trident Microsystems, Inc.*		750	$	1,418
Cogo Group, Inc.*		290		1,409
Sourcefire, Inc.*		250		1,400
Globecomm Systems, Inc.*		250		1,373
Intevac, Inc.*		270		1,369
Microtune, Inc.*		670		1,367
ICx Technologies, Inc.*		170		1,345
Rudolph Technologies, Inc.*		377		1,331
Comverge, Inc.*		270		1,323
OpenTV Corp.*		1,070		1,316
American Software, Inc. — Class A		280		1,316
Zygo Corp., Inc.*		190		1,313
Keynote Systems, Inc.*		170		1,311
FalconStor Software, Inc.*		470		1,307
Multi-Fineline Electronix, Inc.*		110		1,286
Kulicke & Soffa Industries, Inc.*		750		1,275
SupportSoft, Inc.*		570		1,271
Measurement Specialties, Inc.*		180		1,251
Web.com Group, Inc.*		340		1,244
Techwell, Inc.*		190		1,235
i2 Technologies, Inc.*		190		1,214
Agilysys, Inc.		280		1,201
Phoenix Technologies, Ltd.*		340		1,190
Entrust, Inc.*		750		1,185
Emcore Corp.*		900		1,170
Radiant Systems, Inc.*		340		1,146
Anadigics, Inc.*		770		1,140
Rackspace Hosting*		210		1,130
Maxwell Technologies, Inc.*		220		1,115
Callidus Software, Inc.*		370		1,106
Monotype Imaging Holdings, Inc.*		190		1,102
Presstek, Inc.*		340		1,091
Global Cash Access Holdings, Inc.*		489		1,086
Renaissance Learning, Inc.		120		1,079
CPI International, Inc.*		120		1,039
Safeguard Scientifics, Inc.*		1,490		1,028
Interactive Intelligence, Inc.*		160		1,026
Photronics, Inc.*		520		1,014
Hutchinson Technology, Inc.*		290		1,009
China Information Security Technology, Inc.*		280		1,008
Isilon Systems, Inc.*		300		987
Chordiant Software, Inc.*		367		976
SiRF Technology Holdings, Inc.*		750		960
PROS Holdings, Inc.*		165		949
Unica Corp.*		167		915
Quantum Corp.*		2,530		911
Mattson Technology, Inc.*		610		860
Limelight Networks Inc.*		350		858
Semitool, Inc.*		280		854
Cray, Inc.*		410		853

			MARKET
	SHARES		VALUE
Orbcomm, Inc.*		390	$	842
Smart Modular Technologies WWH, Inc.*		537		827
Powerwave Technologies, Inc.*		1,620		810
NetSuite, Inc.*		95		802
Digimarc Corp.*		80		802
Dice Holdings, Inc.*		186		759
TechTarget, Inc.*		170		734
Hypercom Corp.*		660		713
Deltek, Inc.*		150		696
Parkervision, Inc.*		280		692
Rubicon Technology, Inc.*		157		669
Axcelis Technologies, Inc.*		1,260		643
ArcSight, Inc.*		80		641
TheStreet.com, Inc.		220		638
QAD, Inc.		150		629
PC Connection, Inc.*		120		614
Virtusa Corp.*		106		598
PLX Technology, Inc.*		347		597
MIPS Technology, Inc.*		537		596
PC Mall, Inc.*		140		561
Bookham, Inc.*		1,240		558
Magma Design Automation, Inc.*		540		551
AuthenTec, Inc.*		306		511
Ultra Clean Holdings*		240		482
Sonic Solutions, Inc.*		270		475
Gevity HR, Inc.		300		453
Guidance Software, Inc.*		110		449
LTX-Credence Corp.*		1,540		416
Opnext, Inc.*		230		403
Spansion, Inc.*		1,570		297
KEMET Corp.*		1,030		278
Avanex Corp.*		175		184
Asyst Technologies, Inc.*		610		153
HSW International, Inc.*		340		129
Elixir Gaming Technologies, Inc.*		830		108
Entropic Communications, Inc.*		110		55
Nextwave Wireless, Inc.*		600		54
Midway Games, Inc.*		140		27
Total Information Technology				1,451,180
HEALTH CARE 10.1%
Myriad Genetics, Inc.*		550		36,443
Alexion Pharmaceuticals, Inc.*		940		34,019
OSI Pharmaceuticals, Inc.*		700		27,335
Onyx Pharmaceuticals, Inc.*		680		23,229
Immucor, Inc.*		859		22,832
Thoratec Corp.*		670		21,768
Magellan Health Services, Inc.*		500		19,580
AMERIGROUP Corp.*		660		19,483
Owens & Minor, Inc.		510		19,201
Psychiatric Solutions, Inc.*		680		18,938
Haemonetics Corp.*		320		18,080
Valeant Pharmaceuticals International*		780		17,862

84    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Allscripts Healthcare
Solutions, Inc.		1,790	$	17,757
United Therapeutics Corp.*		280		17,514
Bio-Rad Laboratories, Inc. — Class A*		229		17,246
Steris Corp.		720		17,201
Masimo Corp.*		570		17,003
Cubist Pharmaceuticals, Inc.*		690		16,670
Isis Pharmaceuticals, Inc.*		1,110		15,740
NuVasive, Inc.*		440		15,246
West Pharmaceutical Services, Inc.		398		15,032
Sequenom, Inc.*		750		14,880
Auxilium Pharmaceuticals, Inc.*		510		14,504
PSS World Medical, Inc.*		760		14,303
Regeneron Pharmaceuticals, Inc.*		760		13,954
Amedisys, Inc.*		330		13,642
Mentor Corp.		417		12,898
Viropharma, Inc.*		970		12,629
Meridian Bioscience, Inc.		490		12,480
Alkermes, Inc.*		1,170		12,460
Healthspring, Inc.*		610		12,182
Martek Biosciences Corp.		400		12,124
Varian, Inc.*		360		12,064
Healthsouth Corp.*		1,080		11,837
Chemed Corp.		280		11,136
Celera Corp.*		980		10,907
Luminex Corp.*		510		10,894
Alnylam Pharmaceuticals, Inc.*		440		10,881
Centene Corp.*		530		10,446
Dionex Corp.*		230		10,315
Catalyst Health Solutions, Inc.*		410		9,983
HMS Holdings Corp.*		307		9,677
Medicis Pharmaceutical Corp. — Class A		690		9,591
Eclipsys Corp.*		670		9,507
Acorda Therapeutics, Inc.*		460		9,435
Medicines Co.*		640		9,427
athenahealth, Inc.*		250		9,405
Wright Medical Group, Inc.*		458		9,357
AmSurg Corp.*		390		9,103
PDL BioPharma, Inc.		1,470		9,085
Gentiva Health Services, Inc.*		310		9,071
Medarex, Inc.*		1,570		8,761
Volcano Corp.*		580		8,700
Conmed Corp.*		350		8,379
Datascope Corp.		156		8,149
Landauer, Inc.		110		8,063
American Medical Systems Holdings, Inc.*		890		8,001
Theravance, Inc.*		640		7,930
XenoPort, Inc.*		310		7,775
Integra LifeSciences Holdings Corp.*		217		7,719
AMAG Pharmaceuticals, Inc.*		208		7,457

			MARKET
	SHARES		VALUE
Greatbatch, Inc.*		280	$	7,409
Cepheid, Inc.*		700		7,266
CV Therapeutics, Inc.*		750		6,907
Abiomed, Inc.*		420		6,896
Parexel International Corp.*		700		6,797
Align Technology, Inc.*		760		6,650
Phase Forward, Inc.*		530		6,636
Seattle Genetics, Inc.*		740		6,616
LHC Group, Inc.*		180		6,480
Exelixis, Inc.*		1,290		6,476
Nektar Therapeutics*		1,140		6,338
Merit Medical Systems, Inc.*		340		6,096
Invacare Corp.		390		6,053
PharMerica Corp.*		370		5,798
Questcor Pharmaceuticals, Inc.*		620		5,772
Par Pharmaceutical Companies, Inc.*		420		5,632
Conceptus, Inc.*		370		5,631
Hanger Orthopedic Group, Inc.*		380		5,514
Dendreon Corp.*		1,150		5,267
ev3, Inc.*		860		5,246
Salix Pharmaceuticals Ltd.*		590		5,210
Healthways, Inc.*		430		4,936
Zoll Medical Corp.*		258		4,874
National Healthcare Corp.		96		4,861
Cyberonics, Inc.*		290		4,805
SurModics, Inc.*		190		4,801
inVentiv Health, Inc.*		410		4,731
Sun Healthcare Group, Inc.*		530		4,690
Cougar Biotechnology, Inc.*		180		4,680
Omnicell, Inc.*		380		4,640
ICU Medical, Inc.*		140		4,640
Quidel Corp.*		350		4,574
Vivus, Inc.*		850		4,522
Medivation, Inc.*		310		4,517
Neogen Corp.*		180		4,496
Geron Corp.*		960		4,483
Res-Care, Inc.*		297		4,461
Emergent Biosolutions, Inc.*		170		4,439
Kindred Healthcare, Inc.*		340		4,427
Natus Medical, Inc.*		340		4,403
Analogic Corp.		160		4,365
Abaxis, Inc.*		270		4,328
Universal American Financial Corp.*		480		4,234
Halozyme Therapeutics, Inc.*		750		4,200
InterMune, Inc.*		390		4,126
Kendle International, Inc.*		160		4,115
Angiodynamics, Inc.*		298		4,080
Emergency Medical Services Corp. — Class A*		110		4,027
SonoSite, Inc.*		210		4,007
Allos Therapeutics, Inc.*		650		3,978
Savient Pharmaceuticals, Inc.*		670		3,879

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    85

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Optimer Pharmaceuticals, Inc.*		320	$	3,875
GTx, Inc.*		230		3,873
Momenta Pharmaceuticals, Inc.*		330		3,828
Arena Pharmaceuticals, Inc.*		910		3,795
Odyssey HealthCare, Inc.*		400		3,700
Bio-Reference Labs, Inc.*		140		3,672
NPS Pharmaceuticals, Inc.*		580		3,602
Rigel Pharmaceuticals, Inc.*		450		3,600
Almost Family, Inc.*		80		3,598
Genoptix Inc.*		105		3,578
Incyte Corp.*		940		3,563
AMN Healthcare Services, Inc.*		420		3,553
Human Genome Sciences, Inc.*		1,670		3,540
eResearch Technology, Inc.*		530		3,514
Symmetry Medical, Inc.*		440		3,507
MWI Veterinary Supply, Inc.*		130		3,505
Osiris Therapeutics, Inc.*		180		3,449
Durect Corp.*		1,010		3,424
Noven Pharmaceuticals, Inc.*		307		3,377
Progenics Pharmaceuticals, Inc.*		327		3,371
Cross Country Healthcare, Inc.*		377		3,314
RehabCare Group, Inc.*		218		3,305
CryoLife, Inc.*		340		3,301
Genomic Health, Inc.*		167		3,253
Orthofix International NV*		210		3,219
MedAssets, Inc.*		220		3,212
IRIS International, Inc.*		230		3,206
Enzon Pharmaceuticals, Inc.*		548		3,195
Cypress Bioscience, Inc.*		460		3,146
Molina Healthcare, Inc.*		170		2,994
Indevus Pharmaceuticals, Inc.*		950		2,983
Computer Programs &
Systems, Inc.		110		2,948
Metabolix, Inc.*		230		2,926
Ligand Pharmaceuticals, Inc. — Class B*		1,040		2,850
Albany Molecular Research, Inc.*		290		2,825
Synovis Life Technologies, Inc.*		150		2,811
Facet Biotech Corp.*		290		2,781
Assisted Living Concepts, Inc. — Class A*		670		2,780
Maxygen Inc.*		310		2,765
Pharmasset, Inc.*		210		2,753
Orthovita, Inc.*		810		2,746
ImmunoGen, Inc.*		620		2,660
Vital Images, Inc.*		187		2,601
Vnus Medical Technologies, Inc.*		160		2,595
Affymetrix, Inc.*		853		2,550
Palomar Medical Technologies, Inc.*		220		2,537
Bruker BioSciences Corp.*		620		2,505
Pain Therapeutics, Inc.*		420		2,486
Somanetics Corp.*		150		2,476
Dyax Corp.*		680		2,475

			MARKET
	SHARES		VALUE
Alliance Imaging, Inc.*		310	$	2,471
Emeritus Corp.*		240		2,407
Array Biopharma, Inc.*		580		2,349
FGX International Holdings Ltd.*		170		2,336
Accuray, Inc.*		440		2,270
Micrus Endovascular Corp.*		190		2,206
Sirona Dental Systems, Inc.*		210		2,205
Cantel Medical Corp.*		150		2,200
Corvel Corp.*		100		2,198
MannKind Corp.*		627		2,151
Nabi Biopharmaceuticals*		640		2,144
OraSure Technologies, Inc.*		580		2,134
Arqule, Inc.*		500		2,110
Medcath Corp.*		200		2,088
Air Methods Corp.*		130		2,079
US Physical Therapy, Inc.*		150		1,999
Enzo Biochem, Inc.*		400		1,956
Triple-S Management Corp. — Class B*		170		1,955
Atrion Corp.		20		1,942
Idera Pharmaceuticals, Inc.*		246		1,889
Inspire Pharmaceuticals, Inc.*		520		1,872
Kensey Nash Corp.*		95		1,844
Skilled Healthcare Group, Inc. — Class A*		218		1,840
RTI Biologics, Inc.*		660		1,822
Cardiac Science Corp.*		240		1,800
Ardea Biosciences, Inc.*		150		1,795
Idenix Pharmaceuticals, Inc.*		310		1,795
Cadence Pharmaceuticals, Inc.*		248		1,793
Insulet Corp.*		230		1,776
Ensign Group, Inc.		105		1,758
Medical Action Industries, Inc.*		170		1,700
Cambrex Corp.*		360		1,663
Obagi Medical Products, Inc.*		218		1,626
Akorn, Inc.*		700		1,610
Pozen, Inc.*		316		1,593
Sangamo Biosciences, Inc.*		450		1,566
BMP Sunstone Corp.*		280		1,560
ArthroCare Corp.*		326		1,555
Hansen Medical, Inc.*		210		1,516
Exactech, Inc.*		90		1,516
Neurocrine Biosciences, Inc.*		470		1,504
Stereotaxis, Inc.*		340		1,496
CardioNet, Inc.*		60		1,479
BioMimetic Therapeutics, Inc.*		157		1,448
Accelrys, Inc.*		330		1,439
Repligen Corp.*		380		1,436
Celldex Therapeutics, Inc.*		180		1,426
Nighthawk Radiology Holdings, Inc.*		290		1,409
Orexigen Therapeutics, Inc.*		250		1,395
Lexicon Genetics, Inc.*		990		1,386
Zymogenetics, Inc.*		460		1,380

86    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Immunomedics, Inc.*		797	$	1,355
Affymax, Inc.*		135		1,349
Novavax, Inc.*		710		1,342
Discovery Laboratories, Inc.*		1,190		1,333
I-Flow Corp.*		266		1,277
Synta Pharmaceuticals Corp.*		208		1,273
Clinical Data, Inc.*		140		1,246
Cytokinetics, Inc.*		428		1,220
TomoTherapy, Inc.*		500		1,190
IPC The Hospitalist Company, Inc.*		70		1,178
KV Pharmaceutical Co.*		400		1,152
Chindex International, Inc.*		140		1,113
Cynosure, Inc.*		120		1,096
TranS1, Inc.*		150		1,081
Depomed, Inc.*		630		1,040
Life Sciences Research, Inc.*		110		1,034
Spectranetics Corp.*		390		1,018
XOMA Ltd.*		1,630		1,011
Cytori Therapeutics, Inc.*		270		975
Opko Health, Inc.*		590		956
Adolor Corp.*		570		946
Molecular Insight Pharmaceuticals, Inc.*		220		946
Alexza Pharmaceuticals, Inc.*		290		919
Sunrise Senior Living, Inc.*		547		919
DexCom, Inc.*		320		883
RadNet, Inc.*		260		871
NxStage Medical, Inc.*		320		854
Capital Senior Living Corp.*		270		805
Targacept, Inc.*		220		783
Caraco Pharm Labs, Inc.*		130		770
Nanosphere, Inc.*		160		762
Javelin Pharmaceuticals, Inc.*		600		750
Columbia Labs, Inc.*		580		737
Acura Pharmaceuticals, Inc.*		100		734
Ariad Pharmaceuticals, Inc.*		850		723
Alphatec Holdings, Inc.*		307		721
MAP Pharmaceuticals, Inc.*		100		698
Virtual Radiologic Corp.*		80		678
MiddleBrook Pharmaceuticals, Inc.*		440		660
Sucampo Pharmaceuticals, Inc. — Class A*		110		633
Biodel, Inc.*		130		627
Five Star Quality Care, Inc.*		390		597
National Research Corp.		20		579
Caliper Life Sciences, Inc.*		590		572
Amicus Therapeutics, Inc.*		60		479
Acadia Pharmaceuticals, Inc.*		410		369
Vision-Sciences, Inc.*		210		321
Rexahn Pharmaceuticals, Inc.*		360		320
BioForm Medical, Inc.*		270		246
Protalix BioTherapeutics, Inc.*		130		239
Cell Genesys, Inc.*		1,060		233

			MARKET
	SHARES		VALUE
PharmaNet Development Group, Inc.*		240	$	218
Providence Service Corp.*		150		218
Marshall Edwards, Inc.*		250		175
Jazz Pharmaceuticals, Inc.*		90		174
Total Health Care				1,406,706
CONSUMER DISCRETIONARY 7.2%
Wendy’s/Arby’s Group, Inc. — Class A		4,880		24,107
Marvel Entertainment, Inc.*		600		18,450
Tupperware Brands Corp.		760		17,252
Corinthian Colleges, Inc.*		1,050		17,188
Bally Technologies, Inc.*		670		16,100
Jack in the Box, Inc.*		720		15,905
Netflix, Inc.*		500		14,945
Aaron Rents, Inc.		560		14,907
Tractor Supply Co.*		410		14,817
Rent-A-Center, Inc.*		820		14,473
WMS Industries, Inc.*		537		14,445
Matthews International Corp. — Class A		380		13,938
Carter’s, Inc.*		700		13,482
Aeropostale, Inc.*		819		13,186
Wolverine World Wide, Inc.		610		12,834
Deckers Outdoor Corp.*		160		12,779
Polaris Industries, Inc.		410		11,746
Interactive Data Corp.		450		11,097
The Warnaco Group, Inc.*		560		10,993
Pool Corp.		590		10,602
Capella Education Co.*		180		10,577
Under Armour, Inc.*		410		9,774
Vail Resorts, Inc.*		360		9,576
Fossil, Inc.*		560		9,352
Collective Brands, Inc.*		790		9,259
Ryland Group, Inc.		520		9,188
Gymboree Corp.*		350		9,131
Chico’s FAS, Inc.*		2,170		9,071
Sonic Corp.*		740		9,006
Men’s Wearhouse, Inc.		630		8,530
Bob Evans Farms, Inc.		380		7,763
Regis Corp.		530		7,701
Callaway Golf Co.		810		7,525
Sotheby’s		830		7,379
Cheesecake Factory, Inc.*		730		7,373
Jakks Pacific, Inc.*		340		7,014
Iconix Brand Group, Inc.*		710		6,944
Timberland Co. — Class A*		590		6,814
Coinstar, Inc.*		340		6,633
Sally Beauty Holdings, Inc.*		1,160		6,600
Tempur-Pedic International, Inc.		920		6,523
Helen of Troy Ltd.*		370		6,423
J. Crew Group, Inc.*		520		6,344
99 Cents Only Stores*		580		6,339
Buckle, Inc.		286		6,241

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    87

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
P.F. Chang’s China Bistro, Inc.*		298	$	6,240
Children’s Place Retail Stores, Inc.*		287		6,222
CEC Entertainment, Inc.*		250		6,062
Dress Barn, Inc.*		550		5,907
Steiner Leisure Ltd.*		200		5,904
Jos. A. Bank Clothiers, Inc.*		220		5,753
Pinnacle Entertainment, Inc.*		740		5,683
Life Time Fitness, Inc.*		430		5,569
Cracker Barrel Old Country Store, Inc.		270		5,559
CKE Restaurants, Inc.		640		5,555
Buffalo Wild Wings, Inc.*		216		5,540
NutriSystem, Inc.		377		5,500
Hibbett Sports Inc.*		350		5,499
Jackson Hewitt Tax Service, Inc.		350		5,492
Gaylord Entertainment Co.*		500		5,420
Unifirst Corp.		180		5,344
Live Nation, Inc.*		930		5,338
National CineMedia, Inc.		520		5,273
Fred’s, Inc.		490		5,272
American Public Education, Inc.*		140		5,207
Columbia Sportswear Co.		147		5,199
Cato Corp. — Class A		340		5,134
Skechers U.S.A., Inc. — Class A*		400		5,128
PetMed Express, Inc.*		290		5,113
Monro Muffler Brake, Inc.		200		5,100
HOT Topic, Inc.*		540		5,006
Papa John’s International, Inc.*		270		4,976
Exide Technologies*		930		4,920
Fuel Systems Solutions, Inc.*		150		4,914
Churchill Downs, Inc.		120		4,850
Jo-Ann Stores, Inc.*		310		4,802
Texas Roadhouse, Inc.*		610		4,728
Steven Madden, Ltd.*		220		4,690
Meritage Homes Corp.*		380		4,625
National Presto Industries, Inc.		60		4,620
Brunswick Corp.		1,079		4,543
Arbitron, Inc.		340		4,515
Universal Technical Institute, Inc.*		258		4,430
Cooper Tire & Rubber Co.		719		4,429
Brown Shoe Company, Inc.		520		4,404
Ethan Allen Interiors, Inc.		300		4,311
American Greetings Corp. — Class A		560		4,239
Scholastic Corp.		300		4,074
Genesco, Inc.*		240		4,061
Marcus Corp.		246		3,993
Peet’s Coffee & Tea, Inc.*		167		3,883
Stage Stores, Inc.		470		3,878
Blue Nile, Inc.*		157		3,845
Pre-Paid Legal Services, Inc.*		100		3,729
K-Swiss, Inc. — Class A		320		3,648
Bebe Stores, Inc.		470		3,511

			MARKET
	SHARES		VALUE
Charming Shoppes, Inc.*		1,390	$	3,392
The Wet Seal, Inc. — Class A*		1,130		3,356
Shuffle Master, Inc.*		650		3,224
Red Robin Gourmet Burgers, Inc.*		190		3,198
Weyco Group, Inc.		95		3,140
Group 1 Automotive, Inc.		290		3,123
Stewart Enterprises, Inc. — Class A		1,030		3,100
Finish Line, Inc. — Class A		520		2,912
Superior Industries International, Inc.		276		2,904
World Wrestling Entertainment, Inc.		260		2,881
Drew Industries, Inc.*		240		2,880
Quiksilver, Inc.*		1,550		2,852
Maidenform Brands, Inc.*		280		2,842
Cabela’s, Inc. — Class A*		480		2,798
Harte-Hanks, Inc.		447		2,789
California Pizza Kitchen, Inc.*		260		2,787
Dillard’s, Inc. — Class A		700		2,779
Universal Electronics, Inc.*		170		2,757
Cinemark Holdings, Inc.		370		2,749
Blockbuster, Inc. — Class A*		2,180		2,747
Speedway Motorsports, Inc.		170		2,739
RCN Corp.*		458		2,702
Ameristar Casinos, Inc.		310		2,678
Citi Trends, Inc.*		180		2,650
True Religion Apparel, Inc.*		210		2,612
ArvinMeritor, Inc.		910		2,594
Core-Mark Holding Company, Inc.*		120		2,582
Grand Canyon Education, Inc.*		130		2,441
Christopher & Banks Corp.		430		2,408
DineEquity, Inc.		208		2,404
Volcom, Inc.*		220		2,398
CKX, Inc.*		650		2,386
Blyth, Inc.		299		2,344
Denny’s Corp.*		1,170		2,328
Domino’s Pizza, Inc.*		480		2,261
RC2 Corp.*		210		2,241
BJ’s Restaurants, Inc.*		208		2,240
Standard-Pacific Corp.*		1,240		2,207
Winnebago Industries, Inc.		360		2,171
Raser Technologies, Inc.*		580		2,163
Cavco Industries, Inc.*		80		2,151
PEP Boys-Manny Moe & Jack		520		2,148
Ambassadors Group, Inc.		230		2,116
Steak n Shake Co.*		350		2,083
Mediacom Communications Corp.*		480		2,064
Overstock.com, Inc.*		190		2,048
Dolan Media Co.*		310		2,043
Ulta Salon Cosmetics & Fragrance, Inc.*		246		2,037

88    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Haverty Furniture Companies, Inc.		217	$	2,025
Coldwater Creek, Inc.*		700		1,995
DSW, Inc.*		160		1,994
iRobot Corp.*		217		1,960
Modine Manufacturing Co.		400		1,948
Spartan Motors, Inc.		400		1,892
Lululemon Athletica, Inc.*		238		1,887
Movado Group, Inc.		200		1,878
Sinclair Broadcast Group, Inc. — Class A		600		1,860
Knology, Inc.*		350		1,806
M/I Homes, Inc.		170		1,792
Zumiez, Inc.*		240		1,788
Midas, Inc.*		170		1,783
Asbury Automotive Group, Inc.		390		1,782
CSS Industries, Inc.		100		1,774
Orbitz Worldwide, Inc.*		450		1,746
Cox Radio Inc. — Class A*		289		1,737
Dorman Products, Inc.*		130		1,716
Belo Corp. — Class A		1,100		1,716
Charlotte Russe Holding, Inc.*		260		1,687
Tenneco, Inc.*		570		1,682
Shutterfly, Inc.*		240		1,678
Stamps.com, Inc.*		170		1,671
America’s Car Mart, Inc.*		120		1,657
Fisher Communications, Inc.		80		1,651
American Axle & Manufacturing
Holdings, Inc.		570		1,647
Monarch Casino & Resort, Inc.*		140		1,631
Landry’s Restaurants, Inc.		140		1,624
Skyline Corp.		80		1,599
Cherokee, Inc.		90		1,562
Unifi, Inc.*		550		1,551
Systemax, Inc.		140		1,508
K12 Inc.*		80		1,500
Oxford Industries, Inc.		170		1,491
AFC Enterprises, Inc.*		310		1,454
Leapfrog Enterprises, Inc.*		410		1,435
Big 5 Sporting Goods Corp.		270		1,407
Steinway Musical Instruments, Inc.*		80		1,401
Morgans Hotel Group Co.*		300		1,398
RHI Entertainment*		170		1,380
La-Z-Boy, Inc.		630		1,367
Sealy Corp.		540		1,355
Outdoor Channel Holdings, Inc.*		178		1,333
hhgregg, Inc.*		150		1,302
Zale Corp.*		390		1,299
Pacific Sunwear of California, Inc.*		810		1,288
Tween Brands, Inc.*		297		1,283
drugstore.com, Inc.*		1,030		1,277
Journal Communications, Inc. — Class A		520		1,274
Sonic Automotive, Inc.		320		1,274
Lumber Liquidators, Inc.*		120		1,267

			MARKET
	SHARES		VALUE
CROCS, Inc.*		1,020	$	1,265
Retail Ventures, Inc.*		360		1,249
1-800-FLOWERS.com, Inc.*		316		1,207
Krispy Kreme Doughnuts, Inc.*		688		1,156
Global Sources Ltd.*		210		1,145
Luby’s, Inc.*		270		1,131
Furniture Brands International, Inc.		510		1,127
Lear Corp.*		790		1,114
Entravision Communications Corp. — Class A*		690		1,076
Audiovox Corp. — Class A*		210		1,052
Shoe Carnival, Inc.*		110		1,051
Smith & Wesson Holding Corp.*		458		1,040
G-III Apparel Group Ltd.*		157		1,003
Ruby Tuesday, Inc.*		640		998
Gaiam, Inc.*		216		998
Conn’s, Inc.*		116		984
Hovnanian Enterprises, Inc. — Class A*		570		980
Build-A-Bear Workshop, Inc.*		198		962
Perry Ellis International, Inc.*		150		951
Learning Tree International, Inc.*		110		937
Dana Holding Corp.*		1,220		903
Amerigon, Inc.*		270		880
Global Traffic Network, Inc.*		150		876
Quantum Fuel Systems Technologies Worldwide, Inc.*		1,010		859
Rex Stores Corp.*		105		847
Hooker Furniture Corp.		110		843
American Apparel, Inc.*		418		832
Stoneridge, Inc.*		180		821
Martha Stewart Omnimedia, Inc.*		310		806
Cumulus Media, Inc. — Class A*		320		797
Princeton Review, Inc.*		160		789
Valassis Communications, Inc.*		590		779
Kenneth Cole Productions, Inc. — Class A		110		779
Beazer Homes USA, Inc.*		480		758
Fuqi International, Inc.*		116		726
Talbots, Inc.		300		717
Syms Corp.*		80		710
Wonder Auto Technology, Inc.*		180		706
Town Sports International Holdings, Inc.*		218		695
Value Line, Inc.		20		690
New York & Company, Inc.*		290		673
Primedia, Inc.		310		673
MarineMax, Inc.*		197		668
Lincoln Educational Services Corp.*		50		663
Marine Products Corp.		116		652
Nautilus, Inc.*		280		619
Russ Berrie & Company, Inc.*		207		615
Tuesday Morning Corp.*		370		603
Isle of Capri Casinos, Inc.*		187		598
Palm Harbor Homes, Inc.*		120		598

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    89

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Visteon Corp.*		1,610	$	564
Playboy Enterprises, Inc. — Class B*		260		562
McClatchy Company — Class A		700		560
Hayes Lemmerz International, Inc.*		1,240		558
AH Belo Corp. — Class A		250		545
Dover Downs Gaming & Entertainment, Inc.		170		541
Champion Enterprises, Inc.*		960		538
Brookfield Homes Corp.		120		518
Bluegreen Corp.*		165		516
Great Wolf Resorts, Inc.*		330		508
Media General, Inc.		280		490
O’Charleys, Inc.		220		440
Lodgian, Inc.*		199		424
Charter Communications, Inc. — Class A*		5,020		411
Pier 1 Imports, Inc.*		1,090		403
Entercom Communications Corp.		320		394
Crown Media Holdings, Inc. — Class A*		130		371
Riviera Holdings Corp.*		120		360
Lin TV Corp. — Class A*		330		360
Citadel Broadcasting Corp.*		2,230		357
Stein Mart, Inc.*		310		350
Ruth’s Chris Steak House*		246		339
Bidz.com, Inc.*		70		322
Rick’s Cabaret International, Inc.*		80		319
RH Donnelley Corp.*		850		315
Borders Group, Inc.*		740		296
Einstein Noah Restaurant Group, Inc.*		50		288
Cache, Inc.*		140		283
Six Flags, Inc.*		890		276
Dover Motorsports, Inc.		190		247
Casual Male Retail Group, Inc.*		460		239
Lee Enterprises, Inc.		550		226
Libbey, Inc.		180		225
Gray Television, Inc.		530		212
Fleetwood Enterprises, Inc.*		940		94
Aristotle Corp.*		10		36
Total Consumer Discretionary				1,005,512
UTILITIES 2.9%
Piedmont Natural Gas Co.		900		28,503
ITC Holdings Corp.		610		26,645
Westar Energy, Inc.		1,290		26,458
New Jersey Resources Corp.		517		20,344
WGL Holdings, Inc.		610		19,941
Nicor, Inc.		559		19,420
Cleco Corp.		740		16,894
IDACORP, Inc.		560		16,492
Portland General Electric Co.		770		14,992
South Jersey Industries, Inc.		367		14,625

			MARKET
	SHARES		VALUE
Northwest Natural Gas Co.		320	$	14,154
Southwest Gas Corp.		530		13,367
Black Hills Corp.		470		12,671
Laclede Group, Inc.		270		12,647
Avista Corp.		650		12,597
Unisource Energy Corp.		420		12,331
California Water Service Group		240		11,143
PNM Resources, Inc.		1,059		10,675
NorthWestern Corp.		440		10,327
Allete, Inc.		320		10,326
El Paso Electric Co.*		547		9,895
CH Energy Group, Inc.		187		9,610
UIL Holding Corp.		310		9,309
Mge Energy, Inc.		270		8,910
Empire District Electric Co.		406		7,146
Ormat Technologies, Inc.		217		6,916
American States Water Co.		206		6,794
SJW Corp.		160		4,790
Central Vermont Public Service Corp.		140		3,340
Middlesex Water Co.		157		2,705
Chesapeake Utilities Corp.		79		2,487
Connecticut Water Service, Inc.		96		2,266
Consolidated Water Company, Inc.		180		2,250
Cadiz, Inc.*		150		1,876
Southwest Water Co.		300		966
US Geothermal, Inc.*		760		631
Synthesis Energy Systems, Inc.*		310		211
Total Utilities				404,654
ENERGY 2.9%
Comstock Resources, Inc.*		560		26,465
EXCO Resources, Inc.*		1,840		16,670
Concho Resources, Inc.*		680		15,518
Nordic American Tanker Shipping		420		14,175
Penn Virginia Corp.		510		13,250
Arena Resources, Inc.*		468		13,146
World Fuel Services Corp.		350		12,950
Bill Barrett Corp.*		450		9,508
Contango Oil & Gas Co.*		160		9,008
CARBO Ceramics, Inc.		250		8,882
Goodrich Petroleum Corp.*		280		8,386
Bristow Group, Inc.*		300		8,037
Dril-Quip, Inc.*		380		7,794
Gran Tierra Energy, Inc.*		2,720		7,616
McMoRan Exploration Co.*		740		7,252
GulfMark Offshore, Inc.*		280		6,661
Basic Energy Services, Inc.*		510		6,650
Precision Drilling Trust		783		6,572
Swift Energy Co.*		377		6,337
Atlas America, Inc.		420		6,237
Lufkin Industries, Inc.		180		6,210
USEC, Inc.*		1,370		6,151

90    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Ship Finance International Ltd.		520	$	5,746
Carrizo Oil & Gas, Inc.*		340		5,474
Vaalco Energy, Inc.*		730		5,431
GMX Resources, Inc.*		208		5,267
James River Coal Co.*		340		5,212
Complete Production Services, Inc.*		590		4,808
BPZ Resources, Inc.*		739		4,730
Hornbeck Offshore Services, Inc.*		280		4,575
Rosetta Resources, Inc.*		627		4,439
Petroleum Development Corp.*		180		4,333
Stone Energy Corp.*		390		4,298
Newpark Resources, Inc.*		1,100		4,070
Willbros Group, Inc.*		480		4,066
Parker Drilling Co.*		1,390		4,031
Berry Petroleum Co. — Class A		520		3,931
NATCO Group, Inc.*		250		3,795
ION Geophysical Corp.*		1,100		3,773
Delta Petroleum Corp.*		760		3,618
International Coal Group, Inc.*		1,560		3,588
Petroquest Energy, Inc.*		530		3,583
Cal Dive International, Inc.*		540		3,515
RPC, Inc.		360		3,514
Pioneer Drilling Co.*		610		3,398
Clayton Williams Energy, Inc.*		70		3,181
Knightsbridge Tankers Ltd.		210		3,076
Golar LNG Ltd.		430		2,907
Western Refining, Inc.		370		2,871
Matrix Service Co.*		320		2,454
PHI, Inc.*		170		2,382
Gulf Island Fabrication, Inc.		150		2,161
Bronco Drilling Company, Inc.*		320		2,067
ATP Oil & Gas Corp.*		340		1,989
Superior Well Services, Inc.*		198		1,980
Crosstex Energy, Inc.		490		1,911
Allis-Chalmers Energy, Inc.*		339		1,864
Brigham Exploration Co.*		573		1,834
Clean Energy Fuels Corp.*		300		1,812
Dawson Geophysical Co.*		100		1,781
Harvest Natural Resources, Inc.*		400		1,720
Cheniere Energy, Inc.*		600		1,710
Oilsands Quest, Inc.*		2,280		1,664
Panhandle Oil and Gas, Inc. — Class A		90		1,620
Natural Gas Services Group, Inc.*		150		1,519
Warren Resources, Inc.*		720		1,433
T-3 Energy Services, Inc. — Class A*		150		1,416
FX Energy, Inc.*		500		1,395
Rentech, Inc.*		2,040		1,387
Westmoreland Coal Co.*		120		1,332
APCO Argentina, Inc.		50		1,331
Gulfport Energy Corp.*		317		1,252
Alon USA Energy, Inc.		130		1,189

			MARKET
	SHARES		VALUE
Energy XXI Bermuda Ltd.		1,470	$	1,161
Toreador Resources Corp.*		210		1,153
CVR Energy, Inc.*		280		1,120
ENGlobal Corp.*		327		1,063
Parallel Petroleum Corp.*		510		1,025
OYO Geospace Corp.*		55		961
Union Drilling, Inc.*		170		882
Delek US Holdings, Inc.		157		831
Approach Resources, Inc.*		110		804
Bolt Technology Corp.*		110		766
GeoGlobal Resources, Inc.*		470		752
Double Eagle Petroleum Co.*		100		702
Trico Marine Services, Inc.*		157		702
Endeavour International Corp.*		1,400		700
BMB Munai, Inc.*		490		681
Northern Oil And Gas, Inc.*		260		676
Callon Petroleum Co.*		258		671
Sulphco, Inc.*		710		667
Venoco, Inc.*		246		667
TXCO Resources, Inc.*		430		641
Rex Energy Corp.*		207		609
Houston American Energy Corp.		180		608
Georesources, Inc.*		70		608
Meridian Resource Corp.*		950		541
Energy Partners Ltd.*		390		527
PrimeEnergy Corp.*		10		520
Tri-Valley Corp.*		280		504
RAM Energy Resources, Inc.*		570		502
Uranium Resources, Inc.*		610		470
Mitcham Industries, Inc.*		116		461
Gasco Energy, Inc.*		1,150		449
Evergreen Energy Inc.*		1,519		441
National Coal Corp.*		340		432
GeoMet, Inc.*		230		396
Abraxas Petroleum Corp.*		517		372
American Oil & Gas, Inc.*		450		360
GreenHunter Energy, Inc.*		60		295
Cano Petroleum, Inc.*		580		255
Pacific Ethanol, Inc.*		540		238
Aventine Renewable Energy Holdings, Inc.*		360		234
Quest Resource Corp.*		340		150
Geokinetics, Inc.*		60		148
Total Energy				401,653
CONSUMER STAPLES 2.5%
Ralcorp Holdings, Inc.*		690		40,296
Flowers Foods, Inc.		949		23,118
Chattem, Inc.*		208		14,878
Ruddick Corp.		520		14,378
Casey’s General Stores, Inc.		620		14,117
Fresh Del Monte Produce, Inc.*		517		11,591
Winn-Dixie Stores, Inc.*		660		10,626
TreeHouse Foods, Inc.*		380		10,351

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    91

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
Hain Celestial Group, Inc.*		500	$	9,545
United Natural Foods, Inc.*		530		9,445
Universal Corp.		310		9,260
Lancaster Colony Corp.		250		8,575
Sanderson Farms, Inc.		246		8,502
Green Mountain Coffee Roasters, Inc.*		208		8,050
Chiquita Brands International, Inc.*		530		7,833
Lance, Inc.		330		7,570
Tootsie Roll Industries, Inc.		290		7,427
Nash Finch Co.		157		7,048
Nu Skin Enterprises, Inc.		610		6,362
Spartan Stores, Inc.		270		6,277
J&J Snack Foods Corp.		170		6,100
Pantry, Inc.*		270		5,791
WD-40 Co.		200		5,658
Vector Group Ltd.		410		5,584
Darling International, Inc.*		1,000		5,490
Smart Balance, Inc.*		770		5,236
American Oriental Bioengineering, Inc.*		757		5,140
Weis Markets, Inc.		140		4,708
Central Garden and Pet Co. — Class A*		790		4,661
Cal-Maine Foods, Inc.		159		4,563
Prestige Brands Holdings, Inc. — Class A*		407		4,294
Diamond Foods, Inc.		199		4,010
Elizabeth Arden, Inc.*		300		3,783
Pricesmart, Inc.		180		3,719
Andersons, Inc.		220		3,626
Alliance One International, Inc.*		1,090		3,205
Star Scientific, Inc.*		810		3,102
Zhongpin, Inc.*		230		2,760
USANA Health Sciences, Inc.*		80		2,739
Boston Beer Company, Inc. — Class A*		96		2,726
Great Atlantic & Pacific Tea Company, Inc*		430		2,696
Ingles Markets, Inc. — Class A		150		2,639
Coca-Cola Bottling Company
Consolidated		55		2,528
Village Super Market		40		2,296
Imperial Sugar Company, Inc.		150		2,151
Farmer Brothers Co.		80		1,995
Alico, Inc.		40		1,640
China Sky One Medical, Inc.*		99		1,583
Calavo Growers, Inc.		130		1,495
Griffin Land & Nurseries, Inc.		40		1,474
Synutra International, Inc.*		130		1,433
American Dairy, Inc.*		90		1,354
Susser Holdings Corp.*		100		1,329
B&G Foods, Inc.		246		1,328
Inter Parfums, Inc.		170		1,306

			MARKET
	SHARES		VALUE
Arden Group, Inc.		10	$	1,260
National Beverage Corp.*		130		1,170
Omega Protein Corp.*		230		922
Schiff Nutrition International, Inc.*		110		657
HQ Sustainable Maritime Industries, Inc.*		80		626
Lifeway Foods, Inc.*		60		539
Mannatech, Inc.		190		466
AgFeed Industries, Inc.*		240		386
Reddy Ice Holdings, Inc.		217		312
Total Consumer Staples				355,729
MATERIALS 2.4%
Compass Minerals International, Inc.		400		23,464
Royal Gold, Inc.		360		17,716
Olin Corp.		920		16,634
Rock-Tenn Co. — Class A		467		15,962
Silgan Holdings, Inc.		310		14,821
Sensient Technologies Corp.		590		14,089
Calgon Carbon Corp.*		660		10,138
Texas Industries, Inc.		290		10,005
H.B. Fuller Co.		600		9,666
Minerals Technologies, Inc.		230		9,407
Worthington Industries, Inc.		790		8,706
Arch Chemicals, Inc.		307		8,003
OM Group, Inc.*		377		7,958
Amcol International Corp.		320		6,704
Wausau Paper Corp.		540		6,178
Coeur d’Alene Mines Corp.*		6,770		5,958
Deltic Timber Corp.		130		5,948
NewMarket Corp.		170		5,935
Hecla Mining Co.*		2,080		5,824
Koppers Holdings, Inc.		260		5,621
A. Schulman, Inc.		327		5,559
Rockwood Holdings, Inc.*		510		5,508
Balchem Corp.		220		5,480
W.R. Grace & Co.*		890		5,313
Solutia, Inc.*		1,160		5,220
Glatfelter		560		5,208
Zep, Inc.		258		4,982
Kaiser Aluminum Corp.		187		4,211
RTI International Metals, Inc.*		280		4,007
Westlake Chemical Corp.		240		3,910
Ferro Corp.		540		3,807
Schweitzer-Mauduit International, Inc.		190		3,804
Stepan Co.		80		3,759
Haynes International, Inc.*		150		3,693
PolyOne Corp.*		1,150		3,623
Headwaters, Inc.*		517		3,490
Brush Engineered Materials, Inc.*		250		3,180
Zoltek Companies, Inc.*		340		3,057
Myers Industries, Inc.		350		2,800
Allied Nevada Gold Corp.*		550		2,783

92    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			MARKET
	SHARES		VALUE
American Vanguard Corp.		229	$	2,679
Innophos Holdings, Inc.		130		2,575
Stillwater Mining Co.*		490		2,421
Spartech Corp.		378		2,366
Olympic Steel, Inc.		106		2,159
A.M. Castle & Co.		198		2,144
Quaker Chemical Corp.		130		2,139
Graphic Packaging Holding Co.*		1,780		2,029
Horsehead Holding Corp.*		430		2,021
Louisiana-Pacific Corp.		1,270		1,981
Landec Corp.*		290		1,908
Buckeye Technologies, Inc.*		480		1,747
LSB Industries, Inc.*		207		1,722
Innospec, Inc.		287		1,690
GenTek, Inc.*		110		1,656
Neenah Paper, Inc.		180		1,591
U S Concrete, Inc.*		450		1,512
Penford Corp.		140		1,417
AEP Industries, Inc.*		75		1,319
ShengdaTech, Inc.*		370		1,302
Universal Stainless & Alloy*		80		1,159
Clearwater Paper Corp.*		137		1,149
NL Industries, Inc.		80		1,072
ICO, Inc.*		337		1,065
General Moly, Inc.*		770		909
Mercer International, Inc.*		370		710
Bway Holding Co.*		89		708
Flotek Industries, Inc.*		280		706
Apex Silver Mines Ltd.*		720		706
KapStone Paper and Packaging Corp.*		217		516
General Steel Holdings, Inc.*		130		512
United States Lime & Minerals, Inc.*		20		479
AbitibiBowater, Inc.*		649		305
China Precision Steel, Inc.*		208		260
Sutor Technology Group Ltd.*		90		208
Boise, Inc.*		440		189
Verso Paper Corp.		167		172
Total Materials				341,334
TELECOMMUNICATION SERVICES 0.8%
tw telecom Inc.*		1,810		15,331
NTELOS Holdings Corp.		370		9,124
Shenandoah
Telecommunications Co.		290		8,135
Syniverse Holdings, Inc.*		630		7,522
Centennial
Communications Corp.*		830		6,690
Premiere Global Services, Inc.*		760		6,544
Iowa Telecommunications
Services, Inc.		390		5,569
Cincinnati Bell, Inc.*		2,830		5,462
Alaska Communications
Systems Group, Inc.		530		4,971

			MARKET
	SHARES		VALUE
Cbeyond, Inc.*		290	$	4,634
General Communication, Inc. — Class A*		560		4,530
Cogent Communications Group, Inc.*		549		3,585
Fairpoint Communications, Inc.		1,090		3,575
USA Mobility, Inc.*		290		3,355
Consolidated Communications Holdings, Inc.		280		3,326
Atlantic Tele-Network, Inc.		120		3,186
Global Crossing*		316		2,509
PAETEC Holding Corp.*		1,520		2,189
iPCS, Inc. — Class A*		210		1,441
ICO Global Communications Holdings Ltd.*		1,270		1,435
Ibasis, Inc.*		370		522
Hungarian Telephone & Cable Corp.*		60		516
Vonage Holdings Corp.*		630		416
Virgin Mobile USA, Inc. — Class A*		450		378
TerreStar Corp.*		710		284
IDT Corp. — Class B*		660		264
FiberTower Corp.*		1,480		237
Globalstar, Inc.*		547		109
Total Telecommunication Services				105,839
Total Common Stocks (Cost $9,427,482)				9,181,157
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 25.0%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	895,442		895,442
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		895,442		895,442
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		895,442		895,442
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		808,204		808,204
Total Repurchase Agreements (Cost $3,494,530)				3,494,530
Total Investments 90.7% (Cost $12,922,012)			$	12,675,687
Other Assets in Excess of Liabilities – 9.3%			$	1,302,640
Net Assets – 100.0%			$	13,978,327

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    93

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     RUSSELL 2000^® 1.5x STRATEGY FUND

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS PURCHASED
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $6,754,100)		137	$	292,469
		UNITS
EQUITY INDEX SWAP AGREEMENTS
Goldman Sachs International January 2009 Russell 2000 Index Swap, Terminating 01/08/09** (Notional Market Value $2,858,200)		5,723	$	234,201
Credit Suisse Capital, LLC March 2009 Russell 2000 Index Swap, Terminating 03/26/09** (Notional Market Value $2,313,459)		4,632		109,679
(Total Notional Market Value $5,171,659)			$	343,880

*	Non-Income Producing Security.
**	Total Return based on Russell 2000 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.

94    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     INVERSE RUSSELL 2000^® STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 19.3%
Fannie Mae†† 0.04% due 01/05/09	$	500,000	$	499,999
Farmer Mac* 0.07% due 01/07/09		500,000		499,995
Freddie Mac†† 0.05% due 01/29/09		500,000		499,981
Total Federal Agency Discount Notes
(Cost $1,499,975)				1,499,975
REPURCHASE AGREEMENTS† 53.4%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		1,064,461		1,064,461
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,064,461		1,064,461
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		1,064,461		1,064,461
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		960,754		960,754
Total Repurchase Agreements (Cost $4,154,137)				4,154,137
Total Long Securities 72.7% (Cost $5,654,112)			$	5,654,112
Other Assets in Excess of Liabilities – 27.3%			$	2,123,732
Net Assets – 100.0%			$	7,777,844
			Unrealized
		Contracts		Loss
FUTURES CONTRACTS SOLD SHORT
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $2,958,000)		60	$	(102,397	)

			UNREALIZED
	UNITS		LOSS
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT
Credit Suisse Capital, LLC March 2009 Russell 2000 Index Swap, Terminating 03/26/09** (Notional Market Value $2,596,107)		5,198	$	(51,248	)
Goldman Sachs International January 2009 Russell 2000 Index Swap, Terminating 01/08/09** (Notional Market Value $2,102,528)		4,210		(113,872	)
(Total Notional Market Value $4,698,635)			$	(165,120	)

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	Total Return based on Russell 2000 Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
††	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.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    95

SCHEDULE OF INVESTMENTS

December 31, 2008

     GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 28.4%
Federal Farm Credit Bank* 0.03% due 01/07/09	$	5,000,000	$	4,999,979
Farmer Mac* 0.07% due 01/07/09		5,000,000		4,999,951
Freddie Mac†† 0.05% due 01/29/09		5,000,000		4,999,812
Federal Home Loan Bank* 0.20% due 01/06/09		2,000,000		1,999,956
Fannie Mae†† 0.04% due 01/05/09		1,060,000		1,059,996
Total Federal Agency Discount Notes
(Cost $18,059,694)				18,059,694
U.S. TREASURY OBLIGATIONS 46.6%
U.S. Treasury Bond 4.50% due 05/15/38		21,520,000		29,650,525
Total U.S. Treasury Obligations
(Cost $21,712,900)				29,650,525
REPURCHASE AGREEMENTS† 32.4%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		5,271,514		5,271,514
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		5,271,514		5,271,514
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		5,271,514		5,271,514
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		4,757,932		4,757,932
Total Repurchase Agreements
(Cost $20,572,474)				20,572,474
Total Investments 107.4%
(Cost $60,345,068)			$	68,282,693
Liabilities in Excess of Other Assets – (7.4)%			$	(4,688,484	)
Net Assets – 100.0%			$	63,594,209
			Unrealized
		Contracts		Gain
FUTURES CONTRACTS PURCHASED
March 2009 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $89,858,344)		651	$	3,790,546

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
†	Repurchase Agreements — See Note 5.
††	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.

96    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 32.9%
Federal Home Loan Bank* 0.20% due 01/06/09	$	2,000,000	$	1,999,956
Fannie Mae** 0.04% due 01/05/09		500,000		499,998
Farmer Mac* 0.07% due 01/07/09		500,000		499,995
Freddie Mac** 0.05% due 01/29/09		500,000		499,981
Total Federal Agency Discount Notes
(Cost $3,499,930)				3,499,930
		CONTRACTS
OPTIONS PURCHASED 0.0%
Call Options On:
March 2009 U.S. Treasury Bond Index Futures Contracts Expiring February 2009 with strike price of 200†		66		—
Total Options Purchased
(Cost $1,163)				—
		FACE
		AMOUNT
REPURCHASE AGREEMENTS†† 65.8%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	1,790,432		1,790,432
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,790,432		1,790,432
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		1,790,432		1,790,432
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,615,997		1,615,997
Total Repurchase Agreements
(Cost $6,987,293)				6,987,293
Total Investments 98.7%
(Cost $10,488,386)			$	10,487,223
Other Assets in Excess of Liabilities – 1.3%			$	137,672
Net Assets – 100.0%			$	10,624,895

			UNREALIZED
	CONTRACTS		GAIN
FUTURES CONTRACTS SOLD SHORT
March 2009 U.S. Treasury Bond Futures Contracts (Aggregate Market Value of Contracts $18,496,188)		134	$	173,590

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	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.
†	Security is fair valued.
††	Repurchase Agreements — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    97

SCHEDULE OF INVESTMENTS

December 31, 2008

     EUROPE 1.25x STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 85.0%
FINANCIALS 18.3%
HSBC Holdings PLC — SP ADR		7,100	$	345,557
Banco Santander Central Hispano SA — SP ADR		28,900		274,261
Banco Bilbao Vizcaya Argentaria SA — SP ADR		21,140		264,039
Allianz SE — SP ADR		21,530		233,170
AXA — SP ADR		10,200		229,194
UBS AG — SP ADR*		15,370		219,791
Credit Suisse Group AG — SP ADR		6,530		184,538
Deutsche Bank AG— SP ADR		3,780		153,808
Barclays PLC — SP ADR		11,170		109,466
ING Groep NV — SP ADR		9,820		109,002
Lloyds TSB Group PLC — SP ADR		11,460		88,242
Willis Group Holdings Ltd.		2,460		61,205
Allied Irish Banks PLC — SP ADR		5,290		24,810
Total Financials				2,297,083
HEALTH CARE 18.1%
Novartis AG — SP ADR		13,820		687,684
GlaxoSmithKline PLC — SP ADR		15,500		577,685
Sanofi-Aventis — SP ADR		13,870		446,059
AstraZeneca PLC — SP ADR		7,530		308,956
Novo Nordisk A/S — SP ADR		2,490		127,961
Teva Pharmaceutical Industries Ltd. — SP ADR		1,830		77,903
Alcon, Inc. — SP ADR		510		45,487
Total Health Care				2,271,735
TELECOMMUNICATION SERVICES 15.4%
Telefonica SA — SP ADR		7,870		530,359
Vodafone Group PLC — SP ADR		23,390		478,092
France Telecom SA — SP ADR		15,990		448,839
Deutsche Telekom AG — SP ADR		18,380		281,214
BT Group PLC — SP ADR		9,250		184,815
Total Telecommunication Services				1,923,319
ENERGY 14.3%
BP PLC — SP ADR		12,370		578,174
Total SA — SP ADR		9,340		516,502

			MARKET
	SHARES		VALUE
Royal Dutch Shell PLC — SP ADR		7,530	$	398,638
Eni SpA — SP ADR		5,590		267,314
Compagnie Generale de Geophysique SA, Inc. — SP ADR*		1,740		26,082
Total Energy				1,786,710
CONSUMER STAPLES 5.4%
Unilever NV		12,030		295,337
Diageo PLC — SP ADR		4,700		266,678
British American Tobacco PLC — SP ADR		2,160		114,350
Total Consumer Staples				676,365
INFORMATION TECHNOLOGY 4.0%
Nokia Oyj — SP ADR		15,490		241,644
SAP AG — SP ADR		4,700		170,234
Telefonaktiebolaget LM Ericsson — SP ADR		11,530		90,049
Total Information Technology				501,927
MATERIALS 3.9%
BHP Billiton Ltd. — SP ADR		3,790		162,591
Anglo American PLC — SP ADR		10,080		117,130
Rio Tinto PLC — SP ADR		960		85,354
ArcelorMittal		2,960		72,786
Syngenta AG — SP ADR		1,380		54,013
Total Materials				491,874
INDUSTRIALS 3.4%
Siemens AG — SP ADR		3,430		259,823
Koninklijke Philips Electronics NV— SP ADR		4,460		88,620
Ryanair Holdings PLC — SP ADR*		2,740		79,679
Total Industrials				428,122
CONSUMER DISCRETIONARY 1.8%
Daimler AG— SP ADR		4,470		171,112
Carnival PLC — SP ADR		2,410		54,586
Total Consumer Discretionary				225,698
UTILITIES 0.4%
Veolia Environnement — SP ADR		1,620		51,370
Total Utilities				51,370
Total Common Stocks
(Cost $9,934,771)				10,654,203

98    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     EUROPE 1.25x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 11.5%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	370,575	$	370,575
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		370,575		370,575
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		370,575		370,575
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		334,473		334,473
Total Repurchase Agreements
(Cost $1,446,198)				1,446,198
Total Investments 96.5%
(Cost $11,380,969)			$	12,100,401
Other Assets in Excess of Liabilities – 3.5%			$	435,077
Net Assets – 100.0%			$	12,535,478
			Unrealized
		Contracts		Gain
CURRENCY FUTURES
CONTRACTS PURCHASED
March 2009 EURO Currency Futures Contracts (Aggregate Market Value of Contracts $5,226,000)		30	$	290,962
FUTURES CONTRACTS PURCHASED
March 2009 Dow Jones STOXX 50 Futures Contracts (Aggregate Market Value of Contracts $5,219,475)		177	$	197,709

               Country Diversification

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

*	Non-Income Producing Security.
†	Repurchase Agreements — See Note 5.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    99

SCHEDULE OF INVESTMENTS

December 31, 2008

     JAPAN 1.25X STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 78.5%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	2,634,229	$	2,634,229
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		2,634,229		2,634,229
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		2,634,229		2,634,229
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		2,377,585		2,377,585
Total Repurchase Agreements
(Cost $10,280,272)			$	10,280,272
Total Investments 78.5%
(Cost $10,280,272)			$	10,280,272
Other Assets in Excess of Liabilities – 21.5%			$	2,823,624
Net Assets – 100.0%			$	13,103,896

			UNREALIZED
	CONTRACTS		GAIN
CURRENCY FUTURES
CONTRACTS PURCHASED
March 2009 Japanese Yen Currency
Futures Contracts
(Aggregate Market Value of
Contracts $16,285,475)		118	$	58,612
FUTURES CONTRACTS PURCHASED
March 2009 Nikkei 225
Stock Average Index
Futures Contracts
(Aggregate Market Value of
Contracts $16,321,125)		355	$	920,665

† Repurchase Agreements — See Note 5.

100    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     DOW 2X STRATEGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 59.0%
INDUSTRIALS 11.5%
3M Co.		19,450	$	1,119,152
United Technologies Corp.		19,452		1,042,627
Caterpillar, Inc.		19,450		868,831
Boeing Co.		19,450		829,932
General Electric Co.		19,450		315,090
Total Industrials				4,175,632
CONSUMER STAPLES 10.2%
Procter & Gamble Co.		19,448		1,202,275
Wal-Mart Stores, Inc.		19,450		1,090,367
Coca-Cola Co.		19,450		880,501
Kraft Foods, Inc.		19,450		522,233
Total Consumer Staples				3,695,376
INFORMATION TECHNOLOGY 8.3%
International Business Machines Corp.		19,450		1,636,912
Hewlett-Packard Co.		19,450		705,841
Microsoft Corp.		19,450		378,108
Intel Corp.		19,450		285,137
Total Information Technology				3,005,998
ENERGY 8.2%
Exxon Mobil Corp.		19,450		1,552,693
Chevron Corp.		19,450		1,438,717
Total Energy				2,991,410
CONSUMER DISCRETIONARY 5.9%
McDonald’s Corp.		19,450		1,209,595
Home Depot, Inc.		19,450		447,739
Walt Disney Co.		19,450		441,321
General Motors Corp.		19,450		62,240
Total Consumer Discretionary				2,160,895
HEALTH CARE 5.8%
Johnson & Johnson, Inc.		19,450		1,163,693
Merck & Company, Inc.		19,450		591,280
Pfizer, Inc.		19,450		344,460
Total Health Care				2,099,433
FINANCIALS 3.8%
JPMorgan Chase & Co.		19,449		613,227
American Express Co.		19,450		360,797
Bank of America Corp.		19,450		273,856
Citigroup, Inc.		19,453		130,530
Total Financials				1,378,410
TELECOMMUNICATION SERVICES 3.3%
Verizon Communications, Inc.		19,446		659,219
AT&T, Inc.		19,450		554,325
Total Telecommunication Services				1,213,544

			MARKET
	SHARES		VALUE
MATERIALS 2.0%
E.I. du Pont de Nemours and Co.		19,450	$	492,085
Alcoa, Inc.		19,450		219,007
Total Materials				711,092
Total Common Stocks
(Cost $22,918,743)				21,431,790
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 14.5%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	1,352,665		1,352,665
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		1,352,665		1,352,665
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,352,665		1,352,665
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,220,880		1,220,880
Total Repurchase Agreements
(Cost $5,278,875)				5,278,875
Total Investments 73.5%
(Cost $28,197,618)			$	26,710,665
Other Assets in Excess of Liabilities – 26.5%			$	9,637,199
Net Assets – 100.0%			$	36,347,864
			Unrealized
		CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED
March 2009 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Market Value of Contracts $50,590,350)		1,159	$	777,950
		UNITS
EQUITY INDEX SWAP AGREEMENT
Goldman Sachs International January 2009 Dow Jones Industrial Average Index Swap, Terminating 01/08/09* (Notional Market Value $1,009,269)		115	$	(17,276	)

*	Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    101

SCHEDULE OF INVESTMENTS

December 31, 2008

     INVERSE DOW 2X STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 25.6%
Federal Home Loan Bank* 0.20% due 01/06/09	$	2,000,000	$	1,999,956
Farmer Mac* 0.07% due 01/07/09		500,000		499,995
Freddie Mac†† 0.05% due 01/29/09		500,000		499,981
Total Federal Agency Discount Notes
(Cost $2,999,932)				2,999,932
REPURCHASE AGREEMENTS† 49.1%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		1,471,701		1,471,701
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,471,701		1,471,701
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		1,471,701		1,471,701
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,328,319		1,328,319
Total Repurchase Agreements
(Cost $5,743,422)				5,743,422
Total Investments 74.7%
(Cost $8,743,354)			$	8,743,354
Other Assets in Excess of Liabilities – 25.3%			$	2,960,049
Net Assets – 100.0%			$	11,703,403

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS SOLD SHORT
March 2009 Dow Jones Industrial Average Index Mini Futures Contracts (Aggregate Market Value of Contracts $21,912,300)		502	$	(276,182	)
		UNITS
EQUITY INDEX SWAP AGREEMENT
SOLD SHORT
Goldman Sachs International January 2009 Dow Jones Industrial Average Index Swap, Terminating 01/08/09** (Notional Market Value $1,009,269)		115	$	17,210

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	Total Return based on Dow Jones Industrial Average Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 5.
††	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.

102    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     SMALL-CAP VALUE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 100.3%
CONSUMER DISCRETIONARY 40.0%
Brunswick Corp.		49,265	$	207,406
Standard Motor Products, Inc.		59,086		204,438
OfficeMax Inc.		25,646		195,935
Sonic Automotive, Inc.		47,621		189,532
Lithia Motors, Inc. — Class A		56,361		183,737
AH Belo Corp. — Class A		80,817		176,181
Oxford Industries, Inc.		19,228		168,630
Champion Enterprises, Inc.*		284,782		159,478
EW Scripps Co. — Class A		71,176		157,299
O’Charleys, Inc.		75,144		150,288
Ruby Tuesday, Inc.*		95,180		148,481
Group 1 Automotive, Inc.		12,823		138,104
Liz Claiborne, Inc.		48,910		127,166
Stein Mart, Inc.*		105,724		119,468
Bassett Furniture Industries, Inc.		34,514		115,622
Big 5 Sporting Goods Corp.		21,964		114,432
MarineMax, Inc.*		33,532		113,673
PEP Boys-Manny Moe & Jack		25,762		106,397
Christopher & Banks Corp.		18,870		105,672
Brown Shoe Company, Inc.		11,805		99,988
Tuesday Morning Corp.*		60,628		98,824
Stage Stores, Inc.		10,520		86,790
Quiksilver, Inc.*		46,020		84,677
Live Nation, Inc.*		14,742		84,619
Perry Ellis International, Inc.*		12,926		81,951
Standard-Pacific Corp.*		43,787		77,941
Spartan Motors, Inc.		14,710		69,578
Ethan Allen Interiors, Inc.		4,747		68,214
Zale Corp.*		16,985		56,560
La-Z-Boy, Inc.		26,002		56,424
Russ Berrie & Company, Inc.*		18,870		56,044
Arctic Cat, Inc.		11,633		55,722
DineEquity, Inc.		4,470		51,673
Tween Brands, Inc.*		11,640		50,285
Superior Industries International, Inc.		4,715		49,602
Hillenbrand, Inc.		2,320		38,698
National Presto Industries, Inc.		499		38,423
Men’s Wearhouse, Inc.		2,460		33,308
Total Consumer Discretionary				4,121,260
FINANCIALS 32.6%
BankAtlantic Bancorp, Inc. — Class A		36,090		209,322
Guaranty Financial Group, Inc.*		64,681		168,817
Sterling Savings Bank		19,024		167,411
National Financial Partners Corp.		50,396		153,204

			MARKET
	SHARES		VALUE
Stewart Information
Services Corp.		6,307	$	148,151
Corus Bankshares, Inc.		132,235		146,781
Flagstar Bancorp, Inc.*		205,484		145,894
Pennsylvania Real Estate Investment Trust		19,233		143,286
Colonial Properties Trust		15,531		129,373
Frontier Financial Corp.		28,865		125,851
Anchor BanCorp
Wisconsin, Inc.		34,561		95,388
Kite Realty Group Trust		17,032		94,698
Cedar Shopping Centers, Inc.		12,700		89,916
DiamondRock Hospitality Co.		17,439		88,416
Parkway Properties, Inc.		4,420		79,560
BioMed Realty Trust, Inc.		6,553		76,801
Lexington Realty Trust		14,905		74,525
Irwin Financial Corp.*		56,269		72,587
Independent Bank Corp.		29,427		63,562
National Retail Properties, Inc.		3,650		62,743
Susquehanna Bancshares, Inc.		3,913		62,256
Post Properties, Inc.		3,690		60,885
Senior Housing Properties Trust		3,390		60,749
South Financial Group, Inc.		13,727		59,301
Extra Space Storage, Inc.		5,170		53,354
Sovran Self Storage, Inc.		1,455		52,380
Whitney Holding Corp.		3,275		52,367
Entertainment Properties Trust		1,753		52,239
Umpqua Holding Corp.		3,389		49,039
LTC Properties, Inc.		2,352		47,699
Kilroy Realty Corp.		1,380		46,175
Inland Real Estate Corp.		3,261		42,328
Home Properties, Inc.		1,038		42,143
Provident Bankshares Corp.		4,336		41,886
First Midwest Bancorp, Inc.		1,975		39,441
Presidential Life Corp.		3,859		38,166
Delphi Financial Group, Inc. — Class A		1,960		36,142
Franklin Street Properties Corp., Inc.		2,430		35,843
Brookline Bancorp, Inc.		3,111		33,132
Eastgroup Properties, Inc.		880		31,310
Mid-America Apartment Communities, Inc.		838		31,140
Urstadt Biddle Properties, Inc.		1,806		28,770
Acadia Realty Trust		1,720		24,544
Total Financials				3,357,575
INFORMATION TECHNOLOGY 12.0%
Insight Enterprises, Inc.*		26,093		180,042
Technitrol, Inc.		47,710		166,031
SYNNEX Corp.*		12,664		143,483

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    103

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     SMALL-CAP VALUE FUND

			MARKET
	SHARES		VALUE
Keithley Instruments, Inc.		37,365	$	136,382
Gevity HR, Inc.		82,201		124,124
Agilysys, Inc.		18,463		79,206
Gerber Scientific, Inc.*		15,046		76,885
Brightpoint, Inc.*		17,530		76,255
Startek, Inc.*		15,951		70,982
Axcelis Technologies, Inc.*		115,470		58,890
Cypress Semiconductor Corp.*		8,380		37,459
Hutchinson Technology, Inc.*		10,630		36,992
Rudolph Technologies, Inc.*		9,676		34,156
CTS Corp.		3,878		21,368
Total Information Technology				1,242,255
INDUSTRIALS 8.4%
Spherion Corp.*		58,118		128,441
Bowne & Co., Inc.		21,136		124,280
Volt Information Sciences, Inc.*		11,392		82,364
Wabash National Corp.		16,325		73,463
John Bean Technologies Corp.		8,990		73,448
CDI Corp.		5,587		72,296
Standard Register Co.		7,654		68,350
Briggs & Stratton Corp.		3,307		58,170
Apogee Enterprises, Inc.		4,620		47,863
Consolidated Graphics, Inc.*		1,750		39,620
C&D Technologies, Inc.*		11,348		35,519
Barnes Group, Inc.		2,210		32,045
Baldor Electric Co.		1,640		29,274
Total Industrials				865,133
MATERIALS 3.6%
Neenah Paper, Inc.		11,992		106,009
Quaker Chemical Corp.		5,132		84,422
PolyOne Corp.*		16,195		51,014
Myers Industries, Inc.		5,970		47,760
A. Schulman, Inc.		2,783		47,311
Buckeye Technologies, Inc.*		8,830		32,141
Total Materials				368,657
CONSUMER STAPLES 1.6%
Great Atlantic & Pacific Tea Company, Inc*		15,035		94,270
Andersons, Inc.		3,980		65,590
Total Consumer Staples				159,860
UTILITIES 1.3%
Atmos Energy Corp.		1,815		43,015
Central Vermont Public Service Corp.		1,413		33,714
UIL Holding Corp.		1,121		33,664
CH Energy Group, Inc.		525		26,980
Total Utilities				137,373
TELECOMMUNICATION SERVICES 0.8%
Fairpoint Communications, Inc.		25,230		82,754
Total Telecommunication Services				82,754

	FACE		MARKET
	AMOUNT		VALUE
Total Common Stocks
(Cost $10,101,697)			$	10,334,867
REPURCHASE AGREEMENT† 2.1%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	220,141		220,141
Total Repurchase Agreement
(Cost $220,141)				220,141
Total Investments 102.4%
(Cost $10,321,838)			$	10,555,008
Liabilities in Excess of Other Assets – (2.4)%			$	(244,750	)
Net Assets – 100.0%			$	10,310,258

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 5.

104    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     MID-CAP VALUE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.3%
FINANCIALS 33.0%
Colonial BancGroup, Inc.		96,128	$	198,985
Protective Life Corp.		11,296		162,098
SL Green Realty Corp.		4,940		127,946
Webster Financial Corp.		7,773		107,112
Hospitality Properties Trust		6,769		100,655
Unitrin, Inc.		5,858		93,377
Old Republic International Corp.		7,434		88,613
Duke Realty Corp.		7,868		86,233
Mack-Cali Realty Corp.		3,489		85,480
Apollo Investment Corp.		9,100		84,721
Fidelity National Financial, Inc. — Class A		4,722		83,816
Weingarten Realty Investors		3,667		75,870
Alexandria Real Estate Equities, Inc.		1,240		74,822
Macerich Co.		4,090		74,274
Horace Mann Educators Corp.		7,936		72,932
Liberty Property Trust		3,170		72,371
Camden Property Trust		2,093		65,595
Highwoods Properties, Inc.		2,316		63,366
Regency Centers Corp.		1,340		62,578
Nationwide Health Properties, Inc.		2,178		62,552
Health Care REIT, Inc.		1,480		62,456
Equity One, Inc.		3,452		61,100
Cousins Properties, Inc.		4,211		58,322
Omega Healthcare Investors, Inc.		3,490		55,735
New York Community Bancorp, Inc.		4,605		55,076
Realty Income Corp.		2,312		53,523
BRE Properties, Inc. — Class A		1,840		51,483
Washington Federal, Inc.		2,783		41,634
Associated Banc-Corp.		1,969		41,211
PacWest Bancorp		1,505		40,485
First American Corp.		1,329		38,395
UDR, Inc.		2,643		36,447
Wilmington Trust Corp.		1,514		33,671
Astoria Financial Corp.		1,975		32,548
Total Financials				2,505,482
CONSUMER DISCRETIONARY 23.3%
ArvinMeritor, Inc.		73,810		210,358
Modine Manufacturing Co.		34,358		167,323
Furniture Brands International, Inc.		69,891		154,459
Belo Corp. — Class A		89,191		139,138
Williams-Sonoma, Inc.		15,488		121,736
Pacific Sunwear of California, Inc.*		76,278		121,282

			MARKET
	SHARES		VALUE
Foot Locker, Inc.		15,738	$	115,517
Barnes & Noble, Inc.		6,841		102,615
Brinker International, Inc.		9,340		98,444
Brink’s Home Security Holdings, Inc.*		4,390		96,229
AnnTaylor Stores Corp.*		14,790		85,338
Blyth, Inc.		10,600		83,104
Boyd Gaming Corp.		14,987		70,888
Regis Corp.		4,486		65,182
Harte-Hanks, Inc.		9,500		59,280
American Greetings Corp. — Class A		5,480		41,484
Bob Evans Farms, Inc.		1,788		36,529
Total Consumer Discretionary				1,768,906
MATERIALS 12.5%
Temple-Inland, Inc.		42,620		204,576
Ashland, Inc.		15,681		164,808
Ferro Corp.		18,145		127,922
Chemtura Corp.		75,840		106,176
Louisiana-Pacific Corp.		55,788		87,029
RPM International, Inc.		4,793		63,699
Packaging Corporation of America		4,670		62,858
Cabot Corp.		3,343		51,148
Cytec Industries, Inc.		2,000		42,440
Worthington Industries, Inc.		3,813		42,019
Total Materials				952,675
INDUSTRIALS 10.5%
Oshkosh Corp.		22,300		198,247
Kelly Services, Inc. — Class A		10,646		138,505
HNI Corp.		5,410		85,694
Timken Co.		4,079		80,071
Deluxe Corp.		4,620		69,115
YRC Worldwide, Inc.*		18,074		51,872
Manpower, Inc.		1,421		48,300
Crane Co.		2,800		48,272
Alexander & Baldwin, Inc.		1,590		39,845
Federal Signal Corp.		4,431		36,379
Total Industrials				796,300
INFORMATION TECHNOLOGY 6.7%
Tech Data Corp.*		5,649		100,778
Ingram Micro, Inc. — Class A*		7,474		100,077
Imation Corp.		4,661		63,250
Intersil Corp. — Class A		6,180		56,794
Vishay Intertechnology, Inc.*		16,556		56,621
Arrow Electronics, Inc.*		2,951		55,597
Avnet, Inc.*		2,380		43,340
RF Micro Devices, Inc.*		43,130		33,641
Total Information Technology				510,098

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    105

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     MID-CAP VALUE FUND

			MARKET
	SHARES		VALUE
UTILITIES 5.6%
Great Plains Energy, Inc.		3,998	$	77,281
PNM Resources, Inc.		6,771		68,252
Oneok, Inc.		2,146		62,491
Westar Energy, Inc.		2,386		48,937
Black Hills Corp.		1,618		43,621
NV Energy, Inc.		4,152		41,063
AGL Resources, Inc.		1,294		40,567
OGE Energy Corp.		1,533		39,521
Total Utilities				421,733
HEALTH CARE 2.8%
Health Net, Inc.*		7,350		80,042
Kindred Healthcare, Inc.*		5,602		72,938
WellCare Health Plans, Inc.*		4,720		60,699
Total Health Care				213,679
CONSUMER STAPLES 2.4%
Smithfield Foods, Inc.*		9,379		131,963
Universal Corp.		1,681		50,211
Total Consumer Staples				182,174
ENERGY 0.5%
Southern Union Co.		3,072		40,059
Total Energy				40,059
Total Common Stocks
(Cost $8,190,132)				7,391,106
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.9%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	146,417		146,417
Total Repurchase Agreement
(Cost $146,417)				146,417
Total Investments 99.2%
(Cost $8,336,549)			$	7,537,523
Other Assets in Excess of Liabilities – 0.8%			$	57,514
Net Assets – 100.0%			$	7,595,037

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 5.
	REIT — Real Estate Investment Trust.

106    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     LARGE-CAP VALUE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.2%
FINANCIALS 37.1%
ProLogis		24,140	$	335,309
CIT Group, Inc.		48,173		218,705
Hartford Financial Services Group, Inc.		13,064		214,511
XL Capital Ltd.		55,757		206,301
American Capital Ltd.		59,624		193,182
American International Group, Inc.		121,430		190,645
Genworth Financial, Inc. — Class A		61,694		174,594
Lincoln National Corp.		6,839		128,847
Host Hotels & Resorts, Inc.		16,063		121,597
Morgan Stanley		6,927		111,109
Citigroup, Inc.		15,146		101,630
Bank of America Corp.		6,156		86,677
Comerica, Inc.		4,306		85,474
Fifth Third Bancorp		9,990		82,517
Allstate Corp.		2,469		80,884
SunTrust Banks, Inc.		2,627		77,602
Marshall & Ilsley Corp.		5,548		75,675
Huntington Bancshares, Inc.		9,181		70,326
Legg Mason, Inc.		3,150		69,017
HCP, Inc.		2,185		60,677
Apartment Investment & Management Co. — Class A		5,228		60,383
Prudential Financial, Inc.		1,940		58,704
Regions Financial Corp.		7,280		57,949
KIMCO Realty Corp.		3,130		57,216
Vornado Realty Trust		890		53,712
Boston Properties, Inc.		890		48,950
Principal Financial Group, Inc.		2,160		48,751
Capital One Financial Corp.		1,490		47,516
KeyCorp		5,054		43,060
Simon Property Group, Inc.		810		43,035
Ameriprise Financial, Inc.		1,770		41,347
BB&T Corp.		1,422		39,048
Cincinnati Financial Corp.		1,321		38,402
Equity Residential		1,270		37,871
Assurant, Inc.		1,180		35,400
JPMorgan Chase & Co.		1,084		34,179
U.S. Bancorp		1,240		31,012
Zions Bancorporation		1,145		28,064
AvalonBay Communities, Inc.		460		27,867
Total Financials				3,517,745
CONSUMER DISCRETIONARY 20.7%
Office Depot, Inc.*		64,520		192,270
Gannett Company, Inc.		21,390		171,120
Macy’s, Inc.		15,909		164,658

			MARKET
	SHARES		VALUE
CBS Corp.		19,542	$	160,049
Jones Apparel Group, Inc.		27,230		159,568
Wyndham Worldwide Corp.		17,220		112,791
Eastman Kodak Co.		14,308		94,147
Goodyear Tire & Rubber Co.*		14,890		88,893
Ford Motor Co.*		33,554		76,839
Whirlpool Corp.		1,784		73,769
Limited Brands, Inc.		7,060		70,882
Carnival Corp.		2,637		64,132
International Game Technology, Inc.		5,260		62,541
J.C. Penney Company, Inc.		3,068		60,440
AutoNation, Inc.*		5,581		55,140
Leggett & Platt, Inc.		3,506		53,256
Meredith Corp.		2,910		49,819
Newell Rubbermaid, Inc.		4,810		47,042
Johnson Controls, Inc.		2,320		42,131
Starwood Hotels & Resorts Worldwide, Inc.		2,300		41,170
Time Warner, Inc.		3,612		36,337
Mattel, Inc.		1,910		30,560
Fortune Brands, Inc.		730		30,134
Darden Restaurants, Inc.		1,040		29,307
Total Consumer Discretionary				1,966,995
UTILITIES 8.4%
Constellation Energy Group, Inc.		3,960		99,356
NiSource, Inc.		7,592		83,284
Pinnacle West Capital Corp.		2,084		66,959
Pepco Holdings, Inc.		3,460		61,450
Ameren Corp.		1,769		58,837
Integrys Energy Group, Inc.		1,324		56,905
DTE Energy Co.		1,407		50,188
TECO Energy, Inc.		4,005		49,462
CenterPoint Energy, Inc.		3,454		43,589
Progress Energy, Inc.		1,088		43,357
Duke Energy Corp.		2,885		43,304
Consolidated Edison, Inc.		994		38,696
American Electric Power Company, Inc.		1,071		35,643
Xcel Energy, Inc.		1,663		30,849
SCANA Corp.		840		29,904
Total Utilities				791,783
MATERIALS 7.2%
Alcoa, Inc.		9,570		107,758
International Paper Co.		8,642		101,975
MeadWestvaco Corp.		8,835		98,864
AK Steel Holding Corp.		7,480		69,714
United States Steel Corp.		1,720		63,984
Dow Chemical Co.		4,011		60,526
Eastman Chemical Co.		1,570		49,785
Weyerhaeuser Co.		1,563		47,843

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    107

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     LARGE-CAP VALUE FUND

			MARKET
	SHARES		VALUE
E.I. du Pont de Nemours and Co.		1,790	$	45,287
Air Products & Chemicals, Inc.		740		37,200
Total Materials				682,936
CONSUMER STAPLES 5.9%
SUPERVALU, INC.		15,167		221,438
Tyson Foods, Inc. — Class A		10,370		90,841
Philip Morris International, Inc.		1,400		60,914
Altria Group, Inc.		3,900		58,734
Coca-Cola Enterprises, Inc.		4,140		49,804
Reynolds American, Inc.		1,175		47,365
ConAgra Foods, Inc.		1,850		30,525
Total Consumer Staples				559,621
INDUSTRIALS 5.0%
RR Donnelley & Sons Co.		6,537		88,773
Masco Corp.		6,647		73,981
Textron, Inc.		4,500		62,415
General Electric Co.		3,290		53,298
Ingersoll-Rand Co. — Class A		3,010		52,224
Tyco International Ltd.		1,700		36,720
Avery Dennison Corp.		1,080		35,348
Ryder System, Inc.		889		34,475
Northrop Grumman Corp.		744		33,510
Total Industrials				470,744
TELECOMMUNICATION SERVICES 4.2%
Qwest Communications International, Inc.		23,080		84,011
CenturyTel, Inc.		2,750		75,157
Embarq Corp.		1,759		63,254
Windstream Corp.		5,958		54,814
Frontier Communications Corp.		6,072		53,069
Verizon Communications, Inc.		1,028		34,849
AT&T, Inc.		1,173		33,431
Total Telecommunication Services				398,585
ENERGY 3.9%
Tesoro Corp.		15,460		203,608
Valero Energy Corp.		4,390		95,000
Spectra Energy Corp.		4,584		72,152
Total Energy				370,760
INFORMATION TECHNOLOGY 3.2%
Jabil Circuit, Inc.		15,970		107,797
Tyco Electronics Ltd.		3,310		53,655
Analog Devices, Inc.		2,240		42,605
Microchip Technology, Inc.		1,980		38,669
Sun Microsystems, Inc.*		8,760		33,463
Molex, Inc.		2,150		31,154
Total Information Technology				307,343

			MARKET
	SHARES		VALUE
HEALTH CARE 2.6%
AmerisourceBergen Corp.		2,760	$	98,422
Tenet Healthcare Corp.*		58,046		66,753
Pfizer, Inc.		2,605		46,134
McKesson Corp.		868		33,618
Total Health Care				244,927
Total Common Stocks
(Cost $9,140,345)				9,311,439
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.7%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	158,196		158,196
Total Repurchase Agreement
(Cost $158,196)				158,196
Total Investments 99.9%
(Cost $9,298,541)			$	9,469,635
Other Assets in Excess of Liabilities – 0.1%			$	9,084
Net Assets – 100.0%			$	9,478,719

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 5.

108    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     SMALL-CAP GROWTH FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.1%
INFORMATION TECHNOLOGY 26.2%
Intevac, Inc.*		30,368	$	153,966
Heartland Payment Systems, Inc.		7,464		130,620
j2 Global Communications, Inc.*		6,505		130,360
Hittite Microwave Corp.*		4,323		127,356
InfoSpace, Inc.		16,668		125,843
Quality Systems, Inc.		2,759		120,348
Epicor Software Corp.*		24,934		119,683
Wright Express Corp.*		9,430		118,818
DealerTrack Holdings, Inc.*		9,475		112,658
Pericom Semiconductor Corp.*		19,850		108,778
Perficient, Inc.*		22,590		107,980
The Knot, Inc.*		12,960		107,827
United Online, Inc.		17,356		105,351
Cybersource Corp.*		8,680		104,073
Kulicke & Soffa Industries, Inc.*		57,610		97,937
Smith Micro Software, Inc.*		17,565		97,661
MKS Instruments, Inc.*		6,490		95,987
Bankrate, Inc.*		2,481		94,278
Micrel, Inc.		12,610		92,179
Plexus Corp.*		5,090		86,275
ATMI, Inc.*		5,410		83,476
Netgear, Inc.*		7,056		80,509
Electro Scientific Industries, Inc.*		11,650		79,103
Blackbaud, Inc.		5,771		77,908
Park Electrochemical Corp.		4,080		77,357
Websense, Inc.*		4,762		71,287
Concur Technologies, Inc.*		2,120		69,578
Diodes, Inc.*		11,307		68,520
Comtech Telecommunications Corp.*		1,489		68,226
EPIQ Systems, Inc.*		3,976		66,439
Faro Technologies, Inc.*		3,901		65,771
Daktronics, Inc.		6,855		64,163
TTM Technologies, Inc.*		12,280		63,979
Varian Semiconductor
Equipment Associates, Inc.*		3,530		63,964
Bel Fuse, Inc. — Class B		2,760		58,512
ViaSat, Inc.*		2,060		49,605
Micros Systems, Inc.*		2,479		40,457
CACI International, Inc. — Class A*		876		39,499
Synaptics, Inc.*		2,280		37,757
Stratasys, Inc.*		3,340		35,905
Integral Systems, Inc.*		2,690		32,415
Cymer, Inc.*		1,450		31,770
Tyler Technologies, Inc.*		2,565		30,729
Global Payments, Inc.		1		33
Total Information Technology				3,594,940

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY 19.6%
NutriSystem, Inc.		11,299	$	164,852
Stamps.com, Inc.*		16,734		164,495
True Religion Apparel, Inc.*		13,001		161,732
CROCS, Inc.*		114,370		141,819
Shuffle Master, Inc.*		28,254		140,140
Ruth’s Hospitality Group, Inc.*		95,540		131,845
PetMed Express, Inc.*		6,770		119,355
Pool Corp.		5,744		103,220
Zumiez, Inc.*		11,649		86,785
Pre-Paid Legal Services, Inc.*		2,299		85,730
Cracker Barrel Old Country Store, Inc.		4,130		85,037
Volcom, Inc.*		7,093		77,314
Panera Bread Co. — Class A*		1,410		73,658
Deckers Outdoor Corp.*		918		73,321
K-Swiss, Inc. — Class A		6,141		70,007
WMS Industries, Inc.*		2,563		68,945
Hibbett Sports Inc.*		4,111		64,584
Meritage Homes Corp.*		5,151		62,688
Jos. A. Bank Clothiers, Inc.*		2,353		61,531
Dress Barn, Inc.*		5,686		61,068
Drew Industries, Inc.*		4,895		58,740
Children’s Place Retail Stores, Inc.*		2,570		55,718
Papa John’s International, Inc.*		2,976		54,848
Maidenform Brands, Inc.*		5,160		52,374
Tractor Supply Co.*		1,442		52,114
Capella Education Co.*		870		51,121
Universal Technical
Institute, Inc.*		2,875		49,364
CEC Entertainment, Inc.*		1,962		47,578
Monarch Casino & Resort, Inc.*		4,082		47,555
Fossil, Inc.*		2,718		45,391
P.F. Chang’s China Bistro, Inc.*		1,815		38,006
Coinstar, Inc.*		1,909		37,244
Gymboree Corp.*		1,398		36,474
HSN, Inc.*		4,060		29,516
Carter’s, Inc.*		1,370		26,386
Total Consumer Discretionary				2,680,555
HEALTH CARE 15.5%
Palomar Medical
Technologies, Inc.*		15,267		176,029
Viropharma, Inc.*		12,670		164,964
Cubist Pharmaceuticals, Inc.*		6,610		159,698
LCA-Vision, Inc.		37,047		152,263
inVentiv Health, Inc.*		10,560		121,862
Martek Biosciences Corp.		3,924		118,937
Magellan Health Services, Inc.*		2,890		113,172
Catalyst Health Solutions, Inc.*		3,980		96,913
Healthways, Inc.*		7,919		90,910
Chemed Corp.		2,160		85,903

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    109

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     SMALL-CAP GROWTH FUND

			MARKET
	SHARES		VALUE
Immucor, Inc.*		3,185	$	84,657
Meridian Bioscience, Inc.		2,990		76,155
LHC Group, Inc.*		1,906		68,616
Integra LifeSciences Holdings Corp.*		1,660		59,046
Dionex Corp.*		1,280		57,408
Natus Medical, Inc.*		3,980		51,541
Abaxis, Inc.*		3,204		51,360
Molina Healthcare, Inc.*		2,698		47,512
ArthroCare Corp.*		9,810		46,794
Amedisys, Inc.*		1,114		46,053
Symmetry Medical, Inc.*		5,690		45,349
Pediatrix Medical Group, Inc.*		1,316		41,717
Air Methods Corp.*		2,590		41,414
ICU Medical, Inc.*		1,166		38,641
Salix Pharmaceuticals Ltd.*		4,030		35,585
AmSurg Corp.*		1,450		33,843
SurModics, Inc.*		916		23,147
Total Health Care				2,129,489
INDUSTRIALS 11.3%
Ceradyne, Inc.*		6,473		131,467
Viad Corp.		4,560		112,814
Landstar System, Inc.		2,795		107,412
Actuant Corp. — Class A		5,590		106,322
Astec Industries, Inc.*		2,910		91,170
SkyWest, Inc.		4,390		81,654
Mueller Industries, Inc.		2,860		71,729
Toro Co.		2,153		71,049
Geo Group, Inc.*		3,730		67,252
Knight Transportation, Inc.		3,885		62,626
Forward Air Corp.		2,567		62,301
Gardner Denver, Inc.*		2,470		57,650
II-VI, Inc.*		2,830		54,025
Teledyne Technologies, Inc.*		1,170		52,123
Orbital Sciences Corp.*		2,575		50,290
Heartland Express, Inc.		3,091		48,714
Old Dominion Freight Line, Inc.*		1,690		48,097
Curtiss-Wright Corp.		1,435		47,915
SYKES Enterprises, Inc.*		2,450		46,844
Simpson Manufacturing Company, Inc.		1,654		45,915
Axsys Technologies, Inc.*		830		45,534
AAR Corp.*		2,346		43,190
Watson Wyatt & Company Holdings		780		37,299
Total Industrials				1,543,392
ENERGY 10.2%
Basic Energy Services, Inc.*		11,984		156,271
Petroleum Development Corp.*		5,454		131,278
St. Mary Land & Exploration Co.		5,921		120,256

			MARKET
	SHARES		VALUE
Hornbeck Offshore
Services, Inc.*		6,470	$	105,720
Superior Well Services, Inc.*		9,760		97,600
Swift Energy Co.*		5,320		89,429
Oil States International, Inc.*		4,590		85,787
Penn Virginia Corp.		3,259		84,669
ION Geophysical Corp.*		21,210		72,750
Petroquest Energy, Inc.*		10,430		70,507
Tetra Technologies, Inc.*		13,750		66,825
SEACOR Holdings, Inc.*		840		55,986
NATCO Group, Inc.*		3,630		55,103
CARBO Ceramics, Inc.		1,516		53,864
Dril-Quip, Inc.*		2,590		53,121
Lufkin Industries, Inc.		1,520		52,440
Pioneer Drilling Co.*		9,190		51,188
Total Energy				1,402,794
FINANCIALS 8.8%
TradeStation Group, Inc.*		25,821		166,545
Greenhill & Company, Inc.		2,062		143,866
optionsXpress Holdings, Inc.		8,733		116,673
Wilshire Bancorp, Inc.		12,274		111,448
Portfolio Recovery Associates, Inc.*		2,394		81,013
East-West Bancorp, Inc.		4,480		71,546
American Physicians Capital, Inc.		1,460		70,226
Nara Bancorp, Inc.		6,578		64,662
Amerisafe, Inc.*		3,120		64,054
Cascade Bancorp.		9,350		63,112
Signature Bank*		2,070		59,388
World Acceptance Corp.*		2,949		58,272
PrivateBancorp, Inc.		1,775		57,616
First Cash Financial Services, Inc.*		2,450		46,697
Stifel Financial Corp.*		690		31,637
Total Financials				1,206,755
CONSUMER STAPLES 3.4%
Mannatech, Inc.		48,666		119,232
Darling International, Inc.*		13,920		76,421
Green Mountain Coffee Roasters, Inc.*		1,740		67,338
Spartan Stores, Inc.		2,550		59,287
Diamond Foods, Inc.		2,730		55,010
Chattem, Inc.*		710		50,786
Boston Beer Company, Inc. — Class A*		1,335		37,914
Total Consumer Staples				465,988
MATERIALS 3.1%
A.M. Castle & Co.		11,080		119,996
Eagle Materials, Inc.		5,130		94,443
Brush Engineered Materials, Inc.*		6,990		88,913

110    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     SMALL-CAP GROWTH FUND

			MARKET
	SHARES		VALUE
Headwaters, Inc.*		8,621	$	58,192
Balchem Corp.		1,525		37,988
Deltic Timber Corp.		640		29,280
Total Materials				428,812
Total Common Stocks
(Cost $12,280,587)				13,452,725
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.8%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	256,482		256,482
Total Repurchase Agreement
(Cost $256,482)				256,482
Total Investments 99.9%
(Cost $12,537,069)			$	13,709,207
Other Assets in Excess of Liabilities – 0.1%			$	8,268
Net Assets – 100.0%			$	13,717,475

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    111

SCHEDULE OF INVESTMENTS

December 31, 2008

     MID-CAP GROWTH FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.5%
CONSUMER DISCRETIONARY 23.4%
Sotheby’s		23,825	$	211,804
J. Crew Group, Inc.*		16,710		203,862
Aeropostale, Inc.*		9,582		154,270
NVR, Inc.*		333		151,931
ITT Educational Services, Inc.*		1,366		129,743
Under Armour, Inc.*		5,335		127,186
Chico’s FAS, Inc.*		28,553		119,352
Guess?, Inc.		7,352		112,853
Urban Outfitters, Inc.*		7,356		110,193
Netflix, Inc.*		3,540		105,811
Marvel Entertainment, Inc.*		3,280		100,860
Chipotle Mexican Grill, Inc. — Class A*		1,625		100,718
Strayer Education, Inc.		463		99,272
Toll Brothers, Inc.*		4,309		92,342
Ross Stores, Inc.		3,084		91,687
Lamar Advertising Co. — Class A*		6,950		87,292
The Warnaco Group, Inc.*		3,976		78,049
DreamWorks Animation SKG,
Inc. — Class A*		3,065		77,422
Thor Industries, Inc.		5,510		72,622
Advance Auto Parts, Inc.		2,080		69,992
John Wiley & Sons, Inc. — Class A		1,957		69,630
Career Education Corp.*		3,860		69,248
Dick’s Sporting Goods, Inc.*		4,820		68,010
Timberland Co. — Class A*		5,347		61,758
Hovnanian Enterprises, Inc. — Class A*		32,226		55,429
Dollar Tree, Inc.*		1,318		55,092
priceline.com, Inc.*		748		55,090
Total Consumer Discretionary				2,731,518
INDUSTRIALS 18.7%
Joy Global, Inc.		7,430		170,073
Corporate Executive Board Co.		7,058		155,699
Trinity Industries, Inc.		9,430		148,617
Clean Harbors, Inc.*		2,000		126,880
Herman Miller, Inc.		9,650		125,739
Con-way’, Inc.		4,400		117,040
Graco, Inc.		4,926		116,894
Thomas & Betts Corp.*		4,770		114,575
Terex Corp.*		6,322		109,497
J.B. Hunt Transport Services, Inc.		3,900		102,453
Alliant Techsystems, Inc.*		1,179		101,111
MSC Industrial Direct Co. — Class A		2,530		93,180
Bucyrus International, Inc. — Class A		4,930		91,304

			MARKET
	SHARES		VALUE
Alaska Air Group, Inc.*		2,860	$	83,655
Rollins, Inc.		4,308		77,889
Donaldson Company, Inc.		2,170		73,020
Korn/Ferry International, Inc.*		6,138		70,096
Lincoln Electric Holdings, Inc.		1,320		67,228
Navigant Consulting, Inc.*		3,793		60,195
AMETEK, Inc.		1,650		49,846
FTI Consulting, Inc.*		1,100		49,148
Roper Industries, Inc.		1,070		46,449
Copart, Inc.*		1,554		42,253
Total Industrials				2,192,841
INFORMATION TECHNOLOGY 16.9%
CommScope, Inc.*		11,950		185,703
Lam Research Corp.*		8,070		171,730
NeuStar, Inc.*		6,740		128,936
DST Systems, Inc.*		3,263		123,929
Digital River, Inc.*		4,994		123,851
Western Digital Corp.*		10,381		118,862
FactSet Research Systems Inc.		2,650		117,236
ValueClick, Inc.*		14,678		100,398
Synopsys, Inc.*		5,180		95,934
Silicon Laboratories, Inc.*		3,839		95,130
F5 Networks, Inc.*		3,910		89,383
Parametric Technology Corp.*		6,390		80,834
Plantronics, Inc.		5,801		76,573
Alliance Data Systems Corp.*		1,488		69,237
Global Payments, Inc.		1,755		57,546
ANSYS, Inc.*		2,051		57,202
Metavante Technologies, Inc.*		3,540		57,029
Cree, Inc.*		3,375		53,561
ACI Worldwide, Inc.*		3,184		50,626
Gartner, Inc. — Class A*		2,599		46,340
Trimble Navigation Ltd.*		2,007		43,371
Mettler-Toledo International, Inc.*		470		31,678
Total Information Technology				1,975,089
ENERGY 11.5%
Frontier Oil Corp.		12,998		164,165
Patterson-UTI Energy, Inc.		14,160		162,982
Helix Energy Solutions Group, Inc.*		22,032		159,512
Unit Corp.*		5,649		150,941
Helmerich & Payne, Inc.		5,500		125,125
Encore Acquisition Co.*		4,583		116,958
Quicksilver Resources, Inc.*		17,032		94,868
Denbury Resources, Inc.*		8,433		92,088
FMC Technologies, Inc.*		3,504		83,500
Superior Energy Services*		5,150		82,039
Oceaneering International, Inc.*		2,220		64,691
Comstock Resources, Inc.*		990		46,778
Total Energy				1,343,647

112    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     MID-CAP GROWTH FUND

			MARKET
	SHARES		VALUE
HEALTH CARE 11.4%
Sepracor, Inc.*		19,590	$	215,098
United Therapeutics Corp.*		3,355		209,855
Kinetic Concepts, Inc.*		7,361		141,184
VCA Antech, Inc.*		5,450		108,346
Endo Pharmaceuticals Holdings, Inc.*		3,450		89,286
Hologic, Inc.*		6,650		86,916
Lincare Holdings, Inc.*		2,916		78,528
IDEXX Laboratories, Inc.*		2,140		77,211
Techne Corp.		1,102		71,101
Pharmaceutical Product Development, Inc.		2,322		67,361
ResMed, Inc.*		1,751		65,627
Gen-Probe, Inc.*		1,518		65,031
Cerner Corp.*		1,437		55,253
Total Health Care				1,330,797
FINANCIALS 7.2%
Affiliated Managers Group, Inc.*		3,079		129,072
Eaton Vance Corp.		6,134		128,875
SEI Investments Co.		7,286		114,463
Jones Lang LaSalle, Inc.		3,474		96,230
HCC Insurance Holdings, Inc.		3,460		92,555
W.R. Berkley Corp.		2,979		92,349
Brown & Brown, Inc.		3,670		76,703
Hanover Insurance Group, Inc.		1,370		58,869
SVB Financial Group*		2,070		54,296
Total Financials				843,412
MATERIALS 4.7%
Cliffs Natural Resources, Inc.		6,839		175,147
Steel Dynamics, Inc.		14,122		157,884
FMC Corp.		2,600		116,298
Reliance Steel & Aluminum Co.		5,220		104,087
Total Materials				553,416
CONSUMER STAPLES 3.7%
Hansen Natural Corp.*		6,254		209,697
Energizer Holdings, Inc.*		3,129		169,404
Church & Dwight Company, Inc.		941		52,809
Total Consumer Staples				431,910
Total Common Stocks
(Cost $11,325,035)				11,402,630

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 1.9%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	219,753	$	219,753
Total Repurchase Agreement
(Cost $219,753)				219,753
Total Investments 99.4%
(Cost $11,544,788)			$	11,622,383
Other Assets in Excess of Liabilities – 0.6%			$	72,338
Net Assets – 100.0%			$	11,694,721

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    113

SCHEDULE OF INVESTMENTS

December 31, 2008

     LARGE-CAP GROWTH FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.2%
INFORMATION TECHNOLOGY 27.4%
Agilent Technologies, Inc.*		10,580	$	165,365
Google, Inc. — Class A*		482		148,287
Cognizant Technology Solutions Corp. — Class A*		8,009		144,643
Akamai Technologies, Inc.*		9,553		144,155
Salesforce.com, Inc.*		4,477		143,309
MasterCard, Inc.		999		142,787
BMC Software, Inc.*		5,050		135,895
Motorola, Inc.		29,092		128,878
Autodesk, Inc.*		6,123		120,317
SanDisk Corp.*		12,440		119,424
Amphenol Corp.		4,956		118,845
Apple, Inc.*		1,315		112,235
Microsoft Corp.		5,495		106,823
Dell, Inc.*		10,176		104,202
National Semiconductor Corp.		10,165		102,362
Western Union Co.		7,122		102,129
Paychex, Inc.		3,830		100,652
Texas Instruments, Inc.		6,360		98,707
Flir Systems, Inc.*		3,210		98,483
Yahoo!, Inc.*		7,775		94,855
NetApp, Inc.*		6,722		93,906
Oracle Corp.*		5,141		91,150
Intuit, Inc.*		3,743		89,046
Cisco Systems, Inc.*		5,381		87,710
eBay, Inc.*		6,267		87,487
VeriSign, Inc.*		4,560		87,005
Qualcomm, Inc.		2,376		85,132
Total System Services, Inc.		5,838		81,732
Altera Corp.		4,870		81,378
Harris Corp.		2,039		77,584
Fiserv, Inc.*		1,877		68,266
Adobe Systems, Inc.*		3,190		67,915
Lexmark International, Inc.*		2,464		66,282
MEMC Electronic Materials, Inc.*		4,588		65,517
Compuware Corp.*		9,030		60,953
Total Information Technology				3,623,416
ENERGY 16.1%
Sunoco, Inc.		4,155		180,576
Schlumberger Ltd.		3,550		150,271
XTO Energy, Inc.		4,073		143,655
Exxon Mobil Corp.		1,565		124,934
Murphy Oil Corp.		2,668		118,326
EOG Resources, Inc.		1,717		114,318
BJ Services Co.		9,656		112,686
Chesapeake Energy Corp.		6,876		111,185
Chevron Corp.		1,400		103,558
Nabors Industries Ltd.*		8,430		100,907

			MARKET
	SHARES		VALUE
Apache Corp.		1,333	$	99,348
Baker Hughes, Inc.		2,900		93,003
Hess Corp.		1,630		87,433
Cabot Oil & Gas Corp.		3,237		84,162
Anadarko Petroleum Corp.		2,040		78,642
Smith International, Inc.		3,418		78,238
ENSCO International, Inc.		2,610		74,098
Consol Energy, Inc.		2,510		71,736
Cameron International Corp.*		3,366		69,003
Devon Energy Corp.		980		64,396
Range Resources Corp.		1,810		62,246
Total Energy				2,122,721
HEALTH CARE 13.6%
Celgene Corp.*		3,509		193,977
Intuitive Surgical, Inc.*		1,520		193,025
DaVita, Inc.*		2,977		147,570
IMS Health, Inc.		7,801		118,263
UnitedHealth Group, Inc.		4,347		115,630
Waters Corp.*		2,882		105,625
Varian Medical Systems, Inc.*		2,921		102,352
Express Scripts, Inc.*		1,821		100,119
Amgen, Inc.*		1,528		88,242
Forest Laboratories, Inc.*		3,102		79,008
Biogen Idec, Inc.*		1,620		77,161
Johnson & Johnson, Inc.		1,282		76,702
St. Jude Medical, Inc.*		2,186		72,051
Medtronic, Inc.		2,254		70,821
Stryker Corp.		1,639		65,478
Laboratory Corporation of America Holdings*		993		63,959
Zimmer Holdings, Inc.*		1,556		62,893
Patterson Companies, Inc.*		2,995		56,156
Total Health Care				1,789,032
CONSUMER DISCRETIONARY 13.2%
Sears Holdings Corp.*		4,484		174,293
Coach, Inc.*		7,335		152,348
Abercrombie & Fitch Co. — Class A		5,773		133,183
Apollo Group, Inc. — Class A*		1,672		128,109
Amazon.com, Inc.*		2,185		112,047
Wynn Resorts Ltd.*		2,470		104,382
TJX Companies, Inc.		5,028		103,426
AutoZone, Inc.*		730		101,813
Black & Decker Corp.		2,347		98,128
Starbucks Corp.*		10,226		96,738
Sherwin-Williams Co.		1,600		95,600
Yum! Brands, Inc.		2,771		87,286
McGraw-Hill Companies, Inc.		3,620		83,948
Bed Bath & Beyond, Inc.*		3,216		81,751
Viacom, Inc. — Class B*		3,760		71,665

114    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     LARGE-CAP GROWTH FUND

			MARKET
	SHARES		VALUE
Nike, Inc. — Class B		1,234	$	62,934
GameStop Corp. — Class A*		2,850		61,731
Total Consumer Discretionary				1,749,382
INDUSTRIALS 9.6%
Caterpillar, Inc.		3,020		134,904
Paccar, Inc.		4,340		124,124
Rockwell Collins, Inc.		2,948		115,237
CH Robinson Worldwide, Inc.		1,910		105,107
Rockwell Automation, Inc.		3,050		98,332
3M Co.		1,610		92,639
Equifax, Inc.		3,480		92,290
Dun & Bradstreet Corp.		1,180		91,096
Expeditors International of Washington, Inc.		2,715		90,328
Lockheed Martin Corp.		1,040		87,443
Robert Half International, Inc.		3,980		82,864
Fastenal Co.		2,330		81,201
Danaher Corp.		1,238		70,083
Total Industrials				1,265,648
FINANCIALS 7.6%
IntercontinentalExchange, Inc.*		2,180		179,719
NYSE Euronext		6,096		166,909
SLM Corp.*		16,080		143,112
Goldman Sachs Group, Inc.		1,500		126,585
CB Richard Ellis Group, Inc. — Class A*		27,619		119,314
CME Group, Inc.		480		99,893
Progressive Corp.		6,564		97,213
Franklin Resources, Inc.		1,126		71,816
Total Financials				1,004,561
MATERIALS 5.2%
Titanium Metals Corp.		21,895		192,895
Nucor Corp.		3,613		166,921
Freeport-McMoRan Copper & Gold, Inc.		6,530		159,593
Ball Corp.		2,428		100,980
Ecolab, Inc.		1,788		62,848
Total Materials				683,237
CONSUMER STAPLES 5.0%
Avon Products, Inc.		3,717		89,320
PepsiCo, Inc.		1,603		87,796
Colgate-Palmolive Co.		1,233		84,510
Sysco Corp.		3,630		83,272
Campbell Soup Co.		2,692		80,787
Hershey Co.		2,318		80,527
Kellogg Co.		1,817		79,676
Estee Lauder Companies, Inc. — Class A		2,420		74,923
Total Consumer Staples				660,811

			MARKET
	SHARES		VALUE
UTILITIES 0.5%
Questar Corp.		2,170	$	70,937
Total Utilities				70,937
Total Common Stocks
(Cost $11,804,536)				12,969,745
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 2.0%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	257,295		257,295
Total Repurchase Agreement
(Cost $257,295)				257,295
Total Investments 100.2%
(Cost $12,061,831)			$	13,227,040
Liabilities in Excess of Other Assets – (0.2)%			$	(20,275	)
Net Assets – 100.0%			$	13,206,765

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 5.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    115

SCHEDULE OF INVESTMENTS

December 31, 2008

     U.S. GOVERNMENT MONEY MARKET FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 91.2%
Fannie Mae††
2.00% due 01/02/09	$	25,000,000	$	25,000,000
1.19% due 02/23/09		25,000,000		24,957,028
2.30% due 02/05/09		25,000,000		24,945,694
1.35% due 03/30/09		25,000,000		24,918,438
Freddie Mac††
2.30% due 02/03/09		25,000,000		24,948,889
1.45% due 04/08/09		25,000,000		24,903,333
2.90% due 02/24/09		25,000,000		24,893,264
1.15% due 05/11/09		15,000,000		14,938,187
Federal Home Loan Bank*
2.32% due 01/08/09		25,000,000		24,990,333
3.10% due 01/12/09		25,000,000		24,978,472
2.80% due 02/17/09		20,000,000		19,928,444
Farmer Mac*
2.05% due 01/06/09		25,000,000		24,994,306
1.20% due 03/12/09		25,000,000		24,942,500
1.25% due 06/25/09		20,000,000		19,879,167
Total Federal Agency Discount Notes
(Cost $329,218,055)				329,218,055
FEDERAL AGENCY BONDS 6.9%
Federal Home Loan Bank* 3.25% due 01/14/09		25,000,000		25,000,000
Total Federal Agency Bonds
(Cost $25,000,000)				25,000,000
REPURCHASE AGREEMENTS† 5.5%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		5,019,676		5,019,676
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		5,019,676		5,019,676
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		5,019,676		5,019,676
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		4,530,628		4,530,628
Total Repurchase Agreements
(Cost $19,589,656)				19,589,656
Total Investments 103.6%
(Cost $373,807,711)			$	373,807,711
Liabilities in Excess of Other Assets – (3.6)%			$	(12,861,810	)
Net Assets – 100.0%			$	360,945,901

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
†	Repurchase Agreements — See Note 5.
††	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.

116    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

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See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    117

STATEMENTS OF ASSETS AND LIABILITIES

				Inverse						Inverse
				S&P 500						NASDAQ-100®
	Nova			Strategy			NASDAQ-100®			Strategy
	Fund			Fund			Fund			Fund
Assets
Investment Securities	$	25,189,604		$	9,999,807		$	28,451,898		$	999,967
Repurchase Agreements		10,458,976			8,368,873			3,418,313			11,733,400
Total Investments		35,648,580			18,368,680			31,870,211			12,733,367
Segregated Cash with Broker		3,412,211			2,598,840			432,356			1,856,708
Cash		—			—			—			—
Unrealized Appreciation On Swap Agreements		235,937			54,078			13,995			15,823
Receivable for Equity Index Swap Settlement		—			1,762,630			—			4,445
Variation Margin on Futures Contracts		254,607			—			19,221			—
Receivable for Securities Sold		92,394			—			8,337			—
Receivable for Fund Shares Sold		126,188			1,843,291			994,914			49,576
Investment Income Receivable		56,792			8			11,568			11
Total Assets		39,826,709			24,627,527			33,350,602			14,659,930
Liabilities
Unrealized Depreciation On Swap Agreements		—			—			—			—
Payable for Equity Index Swap Settlement		188,097			—			34,683			—
Variation Margin on Futures Contracts		—			133,773			—			68,993
Payable for Securities Purchased		4,099,200			—			—			—
Payable for Fund Shares Redeemed		375,736			521,278			249,480			2,425,665
Investment Advisory Fees Payable		21,324			32,372			20,773			12,113
Transfer Agent and Administrative Fees Payable		7,108			8,992			6,924			3,365
Distribution and Service Fees Payable		7,108			8,992			6,924			3,365
Portfolio Accounting Fees Payable		2,843			3,597			2,770			1,346
Custody Fees Payable		920			1,157			897			435
Other Accrued Fees		37,490			39,871			41,821			17,282
Total Liabilities		4,739,826			750,032			364,272			2,532,564
Net Assets	$	35,086,883		$	23,877,495		$	32,986,330		$	12,127,366
Net Assets Consist Of
Paid-In Capital	$	125,040,332		$	30,780,481		$	352,439,484		$	21,070,689
Undistributed Net Investment Income		410,874			—			—			16,229
Accumulated Net Realized Gain (Loss) on Investments		(89,224,759	)		(6,887,931	)		(325,087,401	)		(9,035,761	)
Net Unrealized Appreciation (Depreciation) on Investments		(1,139,564	)		(15,055	)		5,634,247			76,209
Net Assets	$	35,086,883		$	23,877,495		$	32,986,330		$	12,127,366
Shares Outstanding		771,064	1		408,574			3,142,170			484,031
Net Asset Values	$	45.50	1	$	58.44		$	10.50		$	25.05
Cost of Investments	$	37,466,584		$	18,368,680		$	26,275,174		$	12,733,367

¹ The shares outstanding and net asset value per share have been restated to reflect a 1-for-10 reverse share split effective April 20, 2009. See Note 13 in Notes to Financial Statements.

118    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

December 31, 2008

									Inverse									Inverse			Government
S&P 500			NASDAQ-100®			Mid-Cap			Mid-Cap			Russell 2000®			Russell 2000®			Russell 2000®			Long Bond
2x Strategy			2x Strategy			1.5x Strategy			Strategy			2x Strategy			1.5x Strategy			Strategy			1.2x Strategy
Fund			Fund			Fund			Fund			Fund			Fund			Fund			Fund
$	16,221,554		$	17,850,087		$	6,926,822		$	999,984		$	1,570,771		$	9,181,157		$	1,499,975		$	47,710,219
	6,025,059			2,429,821			3,691,357			3,428,660			1,021,458			3,494,530			4,154,137			20,572,474
	22,246,613			20,279,908			10,618,179			4,428,644			2,592,229			12,675,687			5,654,112			68,282,693
	3,855,128			3,995,103			1,119,960			520,741			445,409			1,611,003			804,971			2,083,200
	—			—			—			—			—			23,177			—			—
	377,636			76,539			159,908			—			268,188			343,880			—			—
	—			—			8,337			—			11,565			—			—			—
	343,170			71,570			93,013			—			6,018			128,780			—			—
	70,602			5,324			88,274			—			3,330			13,690			—			—
	299,572			126,583			1,163,346			13,015			250,537			26,754			1,707,317			—
	27,783			5,358			10,599			3			2,505			9,425			4			128,426
	27,220,504			24,560,385			13,261,616			4,962,403			3,579,781			14,832,396			8,166,404			70,494,319
	—			—			—			75,791			—			—			165,120			—
	74,369			307,142			—			11,515			—			28,881			149,062			—
	—			—			—			51,620			—			—			56,400			2,088,897
	100,611			—			42,680			—			—			—			—			172,973
	478,618			854,359			39,107			36			152,117			796,724			9			4,511,634
	19,232			14,685			8,005			3,884			1,917			8,338			5,510			32,736
	5,342			4,079			2,223			1,079			532			2,316			1,531			13,094
	5,342			4,079			2,223			1,079			532			2,316			1,531			16,368
	2,137			1,632			889			432			213			927			612			6,547
	695			528			294			140			78			302			210			2,125
	20,971			26,389			15,841			4,285			2,916			14,265			8,575			55,736
	707,317			1,212,893			111,262			149,861			158,305			854,069			388,560			6,900,110
$	26,513,187		$	23,347,492		$	13,150,354		$	4,812,542		$	3,421,476		$	13,978,327		$	7,777,844		$	63,594,209
$	56,359,933		$	62,016,355		$	24,460,919		$	6,251,745		$	8,414,395		$	25,220,144		$	13,858,083		$	40,900,120
	158,278			—			13,700			—			2,386			7,619			—			—
	(31,850,086	)		(41,114,414	)		(9,665,471	)		(1,259,081	)		(5,076,453	)		(11,639,460	)		(5,812,722	)		10,965,918
	1,845,062			2,445,551			(1,658,794	)		(180,122	)		81,148			390,024			(267,517	)		11,728,171
$	26,513,187		$	23,347,492		$	13,150,354		$	4,812,542		$	3,421,476		$	13,978,327		$	7,777,844		$	63,594,209
	430,484	1		2,845,744			1,340,447			102,824			46,443	1		843,723			182,152			3,687,857
$	61.59	1	$	8.20		$	9.81		$	46.80		$	73.67	1	$	16.57		$	42.70		$	17.24
$	21,309,015		$	18,109,394		$	12,789,702		$	4,428,644		$	2,778,460		$	12,922,012		$	5,654,112		$	60,345,068

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    119

STATEMENTS OF ASSETS AND LIABILITIES (concluded)

	Inverse
	Government
	Long Bond			Europe 1.25x			Japan 1.25x			Dow 2x
	Strategy			Strategy			Strategy			Strategy
	Fund			Fund			Fund			Fund
Assets
Investment Securities	$	3,499,930		$	10,654,203		$	—		$	21,431,790
Repurchase Agreements		6,987,293			1,446,198			10,280,272			5,278,875
Total Investments		10,487,223			12,100,401			10,280,272			26,710,665
Segregated Cash with Broker		456,766			1,175,470			2,199,800			6,374,500
Cash		—			243			—			—
Unrealized Appreciation On Swap Agreements		—			—			—			—
Variation Margin on Futures Contracts		542,371			21,656			42,629			—
Receivable for Securities Sold		—			—			—			—
Receivable for Fund Shares Sold		638,698			1,859,309			611,243			6,638,542
Investment Income Receivable		7			20,956			10			28,877
Prepaid Insurance		—			—			—			—
Total Assets		12,125,065			15,178,035			13,133,954			39,752,584
Liabilities
Unrealized Depreciation On Swap Agreements		—			—			—			17,276
Variation Margin on Futures Contracts		—			—			—			1,143,549
Payable for Securities Purchased		—			2,605,349			—			2,193,908
Payable for Fund Shares Redeemed		1,474,665			547			6,865			—
Investment Advisory Fees Payable		7,261			8,374			7,630			19,576
Transfer Agent and Administrative Fees Payable		2,017			2,326			2,119			5,438
Distribution and Service Fees Payable		2,017			2,326			2,119			5,438
Portfolio Accounting Fees Payable		807			930			848			2,175
Custody Fees Payable		260			301			276			746
Other Accrued Fees		13,143			22,404			10,201			16,614
Total Liabilities		1,500,170			2,642,557			30,058			3,404,720
Net Assets	$	10,624,895		$	12,535,478		$	13,103,896		$	36,347,864
Net Assets Consist Of
Paid-In Capital	$	25,704,289		$	30,245,506		$	21,724,593		$	62,420,066
Undistributed Net Investment Income		—			517,214			31,969			—
Accumulated Net Realized Gain (Loss) on Investments		(15,251,821	)		(19,435,345	)		(9,631,943	)		(25,345,923	)
Net Unrealized Appreciation (Depreciation) on Investments		172,427			1,208,103			979,277			(726,279	)
Net Assets	$	10,624,895		$	12,535,478		$	13,103,896		$	36,347,864
Shares Outstanding		781,353			991,239			869,037			753,502	2
Net Asset Values	$	13.60		$	12.65		$	15.08		$	48.24	2
Cost of Investments	$	10,488,386		$	11,380,969		$	10,280,272		$	28,197,618

² The shares outstanding and net asset value per share have been restated to reflect a 1-for-5 reverse share split effective April 20, 2009. See Note 13 in Notes to Financial Statements.

120    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

December 31, 2008

Inverse
Dow 2x			Small-Cap			Mid-Cap			Large-Cap			Small-Cap			Mid-Cap			Large-Cap			U.S. Government
Strategy			Value			Value			Value			Growth			Growth			Growth			Money Market
Fund			Fund			Fund			Fund			Fund			Fund			Fund			Fund
$	2,999,932		$	10,334,867		$	7,391,106		$	9,311,439		$	13,452,725		$	11,402,630		$	12,969,745		$	354,218,055
	5,743,422			220,141			146,417			158,196			256,482			219,753			257,295			19,589,656
	8,743,354			10,555,008			7,537,523			9,469,635			13,709,207			11,622,383			13,227,040			373,807,711
	2,761,000			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	17,210			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			1,968,275			36,063			391,127			—			117,811			—			—
	1,208,775			419,676			479,931			66,584			1,233,950			512,811			1,845,198			32,992
	6			38,219			15,322			50,421			5,379			4,768			13,295			217,178
	—			—			—			—			—			—			—			52,404
	12,730,345			12,981,178			8,068,839			9,977,767			14,948,536			12,257,773			15,085,533			374,110,285
	—			—			—			—			—			—			—			—
	205,667			—			—			—			—			—			—			—
	—			43,121			111,822			229,108			384,807			202,023			633,227			—
	790,679			2,603,744			342,057			240,926			820,120			330,208			1,211,660			12,422,685
	10,256			6,549			4,419			6,680			7,338			6,998			8,921			186,400
	2,849			2,183			1,473			2,227			2,446			2,333			2,974			74,560
	2,849			2,183			1,473			2,227			2,446			2,333			2,974			93,200
	1,140			873			589			891			978			933			1,189			33,424
	367			317			194			292			320			302			421			12,563
	13,135			11,950			11,775			16,697			12,606			17,922			17,402			341,552
	1,026,942			2,670,920			473,802			499,048			1,231,061			563,052			1,878,768			13,164,384
$	11,703,403		$	10,310,258		$	7,595,037		$	9,478,719		$	13,717,475		$	11,694,721		$	13,206,765		$	360,945,901
$	12,303,784		$	23,388,064		$	17,841,268		$	22,831,635		$	22,887,698		$	22,827,004		$	24,899,824		$	360,862,374
	—			198,801			266,722			438,407			—			—			—			7,497
	(341,409	)		(13,509,777	)		(9,713,927	)		(13,962,417	)		(10,342,361	)		(11,209,878	)		(12,858,268	)		76,030
	(258,972	)		233,170			(799,026	)		171,094			1,172,138			77,595			1,165,209			—
$	11,703,403		$	10,310,258		$	7,595,037		$	9,478,719		$	13,717,475		$	11,694,721		$	13,206,765		$	360,945,901
	328,628			202,828	2		174,773	2		206,898	2		771,655			620,332			801,956			360,881,979
	$35.61		$	50.83	2	$	43.46	2	$	45.81	2	$	17.78		$	18.85		$	16.47		$	1.00
$	8,743,354		$	10,321,838		$	8,336,549		$	9,298,541		$	12,537,069		$	11,544,788		$	12,061,831		$	373,807,711

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    121

STATEMENTS OF OPERATIONS

				Inverse						Inverse
				S&P 500						NASDAQ-100®
	Nova			Strategy			NASDAQ-100®			Strategy
	Fund			Fund			Fund			Fund
Investment Income
Interest	$	212,224		$	785,812		$	226,225		$	369,978
Income from Securities Lending, net		27,863			—			42,213			—
Dividends, Net of Foreign Tax Withheld		1,005,684			—			236,894			—
Total Income		1,245,771			785,812			505,332			369,978
Expenses
Investment Advisory Fees		412,934			461,704			412,279			187,755
Transfer Agent and Administrative Fees		137,645			128,251			137,426			52,154
Audit and Outside Service Fees		29,169			31,301			29,851			12,080
Portfolio Accounting Fees		55,058			51,301			54,971			20,862
Trustees’ Fees*		7,040			5,502			7,031			2,515
Shareholder Service Fees		137,645			128,251			137,426			52,154
Custody Fees		15,676			14,155			15,118			5,689
Miscellaneous		39,730			38,745			53,539			20,540
Total Expenses		834,897			859,210			847,641			353,749
Net Investment Income (Loss)		410,874			(73,398	)		(342,309	)		16,229
Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on:
Investment Securities		(8,227,311	)		—			(5,926,090	)		—
Equity Index Swaps		(5,462,082	)		2,991,819			(2,036,128	)		2,776,341
Futures Contracts		(15,211,059	)		20,828,635			(2,947,425	)		5,741,067
Total Net Realized Gain (Loss)		(28,900,452	)		23,820,454			(10,909,643	)		8,517,408
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(9,885,703	)		—			(18,012,043	)		—
Equity Index Swaps		422,577			(41,579	)		105,515			(90,960	)
Futures Contracts		209,271			(171,177	)		(31,050	)		(14,606	)
Net Change in Unrealized Appreciation (Depreciation)		(9,253,855	)		(212,756	)		(17,937,578	)		(105,566	)
Net Gain (Loss) on Investments		(38,154,307	)		23,607,698			(28,847,221	)		8,411,842
Net Increase (Decrease) in Net Assets from Operations	$	(37,743,433	)	$	23,534,300		$	(29,189,530	)	$	8,428,071
Foreign Tax Withheld	$	—		$	—		$	2,809		$	—

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

122    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Year Ended December 31, 2008

									Inverse									Inverse			Government
S&P 500			NASDAQ-100®			Mid-Cap			Mid-Cap			Russell 2000®			Russell 2000®			Russell 2000®			Long Bond
2x Strategy			2x Strategy			1.5x Strategy			Strategy			2x Strategy			1.5x Strategy			Strategy			1.2x Strategy
Fund			Fund			Fund			Fund			Fund			Fund			Fund			Fund
$	188,019		$	279,497		$	103,757		$	100,543		$	33,471		$	102,803		$	219,809		$	2,329,597
	10,474			21,619			16,533			—			3,884			20,065			—			—
	432,290			123,805			199,504			—			29,349			133,724			—			—
	630,783			424,921			319,794			100,543			66,704			256,592			219,809			2,329,597
	254,154			322,611			166,329			50,600			34,606			133,733			104,154			293,801
	70,598			89,614			46,203			14,056			9,613			37,148			28,932			117,521
	16,060			18,915			12,307			3,233			2,254			10,950			6,509			41,868
	28,239			35,846			18,481			5,622			3,845			14,859			11,573			58,760
	3,203			4,546			3,084			577			437			2,530			1,320			6,586
	70,598			89,614			46,203			14,056			9,613			37,148			28,932			146,900
	8,615			16,968			5,052			1,540			1,092			4,193			3,174			17,145
	21,038			35,212			8,435			4,245			2,999			8,576			10,328			32,145
	472,505			613,326			306,094			93,929			64,459			249,137			194,922			714,726
	158,278			(188,405	)		13,700			6,614			2,245			7,455			24,887			1,614,871
	(8,076,543	)		(5,602,721	)		(3,736,213	)		—			(888,736	)		(3,659,903	)		—			11,433,554
	(4,465,377	)		(8,367,393	)		(1,695,948	)		345,049			(1,811,654	)		(4,482,525	)		2,780,994			—
	(18,014,300	)		(19,507,206	)		(3,412,129	)		266,998			(1,368,611	)		(2,047,560	)		(795,528	)		4,354,023
	(30,556,220	)		(33,477,320	)		(8,844,290	)		612,047			(4,069,001	)		(10,189,988	)		1,985,466			15,787,577
	(2,234,494	)		(7,906,328	)		(1,977,768	)		—			(197,412	)		(610,055	)		—			6,063,321
	724,814			75,899			58,149			(109,252	)		273,675			360,617			(158,175	)		—
	334,735			117,230			568,472			(134,516	)		(36,450	)		192,139			(100,552	)		3,856,232
	(1,174,945	)		(7,713,199	)		(1,351,147	)		(243,768	)		39,813			(57,299	)		(258,727	)		9,919,553
	(31,731,165	)		(41,190,519	)		(10,195,437	)		368,279			(4,029,188	)		(10,247,287	)		1,726,739			25,707,130
$	(31,572,887	)	$	(41,378,924	)	$	(10,181,737	)	$	374,893		$	(4,026,943	)	$	(10,239,832	)	$	1,751,626		$	27,322,001
$	—		$	1,366		$	—		$	—		$	13		$	61		$	—		$	—

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    123

STATEMENTS OF OPERATIONS (concluded)

	Inverse
	Government
	Long Bond			Europe 1.25x			Japan 1.25x			Dow 2x
	Strategy			Strategy			Strategy			Strategy
	Fund			Fund			Fund			Fund
Investment Income
Interest	$	488,636		$	100,246		$	243,012		$	135,712
Income from Securities Lending, net		—			28,064			—			10,007
Dividends, Net of Foreign Tax Withheld		—			1,099,708			—			597,412
Total Income		488,636			1,228,018			243,012			743,131
Expenses
Investment Advisory Fees		146,730			277,461			114,910			258,899
Transfer Agent and Administrative Fees		40,758			77,072			31,919			71,916
Audit and Outside Service Fees		10,219			15,306			7,901			7,375
Portfolio Accounting Fees		16,303			30,829			12,768			28,766
Interest Expense		401,188			—			—			—
Trustees’ Fees*		2,146			5,116			1,979			2,705
Shareholder Service Fees		40,758			77,072			31,919			71,916
Custody Fees		4,390			8,962			3,427			7,896
Treasury Guarantee Program Fees		—			—			—			—
Miscellaneous		8,064			21,242			6,220			33,807
Total Expenses		670,556			513,060			211,043			483,280
Net Investment Income (Loss)		(181,920	)		714,958			31,969			259,851
Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on:
Investment Securities		(4,019	)		(7,924,161	)		—			(2,465,721	)
Equity Index Swaps		—			(3,597,156	)		(2,889,262	)		(3,655,411	)
Futures Contracts		(3,724,609	)		(4,621,876	)		(3,956,852	)		(14,110,894	)
Securities Sold Short		(755,257	)		—			—			—
Net Increase from Payments by Affiliates		—			—			179,990			—
Total Net Realized Gain (Loss)		(4,483,885	)		(16,143,193	)		(6,666,124	)		(20,232,026	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(1,163	)		(6,914,118	)		—			(5,446,832	)
Equity Index Swaps		—			625,460			380,195			572,842
Futures Contracts		125,221			488,672			1,140,540			715,598
Securities Sold Short		87,697			—			—			—
Net Change in Unrealized Appreciation (Depreciation)		211,755			(5,799,986	)		1,520,735			(4,158,392	)
Net Gain (Loss) on Investments		(4,272,130	)		(21,943,179	)		(5,145,389	)		(24,390,418	)
Net Increase (Decrease) in Net Assets from Operations	$	(4,454,050	)	$	(21,228,221	)	$	(5,113,420	)	$	(24,130,567	)
Foreign Tax Withheld	$	—		$	143,150		$	—		$	—

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

124    |     THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Year Ended December 31, 2008

Inverse
Dow 2x			Small-Cap			Mid-Cap			Large-Cap			Small-Cap			Mid-Cap			Large-Cap			U.S. Government
Strategy			Value			Value			Value			Growth			Growth			Growth			Money Market
Fund			Fund			Fund			Fund			Fund			Fund			Fund			Fund
$	318,095		$	1,023		$	1,065		$	1,413		$	1,450		$	2,591		$	2,607		$	8,376,965
	—			38,158			40,715			44,630			58,747			52,382			25,649			—
	—			348,656			420,652			665,603			137,061			90,192			228,427			—
	318,095			387,837			462,432			711,646			197,258			145,165			256,683			8,376,965
	173,270			93,274			97,139			135,930			100,006			175,631			174,422			1,810,190
	48,130			31,091			32,380			45,310			33,335			58,544			58,141			724,076
	5,926			9,243			9,208			13,025			9,620			13,847			13,409			259,193
	19,252			12,436			12,952			18,124			13,334			23,417			23,256			333,993
	—			—			—			—			—			—			—			—
	1,607			1,678			2,130			3,311			1,739			2,855			2,749			38,034
	48,130			31,091			32,380			45,310			33,335			58,544			58,141			905,095
	5,286			3,477			3,581			4,916			3,672			6,369			6,233			110,774
	—			—			—			—			—			—			—			53,049
	23,231			6,746			5,940			7,313			7,336			13,776			14,167			198,361
	324,832			189,036			195,710			273,239			202,377			352,983			350,518			4,432,765
	(6,737	)		198,801			266,722			438,407			(5,119	)		(207,818	)		(93,835	)		3,944,200
	—			(10,574,577	)		(7,541,970	)		(11,659,693	)		(6,099,762	)		(6,088,855	)		(9,182,357	)		77,579
	5,230,736			—			—			—			—			—			—			—
	5,198,438			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	10,429,174			(10,574,577	)		(7,541,970	)		(11,659,693	)		(6,099,762	)		(6,088,855	)		(9,182,357	)		77,579
	—			(66,716	)		(785,062	)		4,873			(281,627	)		(3,409,958	)		(2,461,497	)		—
	(376,197	)		—			—			—			—			—			—			—
	(389,905	)		—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	(766,102	)		(66,716	)		(785,062	)		4,873			(281,627	)		(3,409,958	)		(2,461,497	)		—
	9,663,072			(10,641,293	)		(8,327,032	)		(11,654,820	)		(6,381,389	)		(9,498,813	)		(11,643,854	)		77,579
$	9,656,335		$	(10,442,492	)	$	(8,060,310	)	$	(11,216,413	)	$	(6,386,508	)	$	(9,706,631	)	$	(11,737,689	)	$	4,021,779
$	—		$	500		$	—		$	—		$	—		$	—		$	—		$	—

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    125

STATEMENTS OF CHANGES IN NET ASSETS

							Inverse S&P 500
	Nova Fund						Strategy Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income (Loss)	$	410,874		$	1,080,329		$	(73,398	)	$	825,635
Net Realized Gain (Loss) on Investments		(28,900,452	)		5,154,818			23,820,454			(1,764,661	)
Net Change in Unrealized Appreciation (Depreciation) on Investments		(9,253,855	)		(1,800,911	)		(212,756	)		182,590
Net Increase (Decrease) in Net Assets from Operations		(37,743,433	)		4,434,236			23,534,300			(756,436	)
Distributions to Shareholders from:
Net Investment Income		(223,114	)		(1,161,348	)		(172,209	)		(767,870	)
Realized Gain on Investments		—			—			—			—
Total Distributions to Shareholders		(223,114	)		(1,161,348	)		(172,209	)		(767,870	)
Share Transactions
Proceeds from Shares Purchased		189,555,477			273,549,727			1,047,740,031			352,463,997
Value of Shares Purchased through Dividend Reinvestment		223,114			1,161,348			172,209			767,870
Cost of Shares Redeemed		(198,916,487	)		(330,269,317	)		(1,069,928,756	)		(349,151,544	)
Net Increase (Decrease) in Net Assets From Share Transactions		(9,137,896	)		(55,558,242	)		(22,016,516	)		4,080,323
Capital Contribution from Advisor		—			—			950,611			—
Net Increase (Decrease) in Net Assets		(47,104,443	)		(52,285,354	)		2,296,186			2,556,017
Net Assets—Beginning of Period		82,191,326			134,476,680			21,581,309			19,025,292
Net Assets—End of Period	$	35,086,883		$	82,191,326		$	23,877,495		$	21,581,309
Undistributed Net Investment Income—End of Period	$	410,874		$	223,114		$	—		$	172,208

126    |     THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

						Inverse NASDAQ-100®						S&P 500						NASDAQ-100®
NASDAQ-100®Fund						Strategy Fund						2x Strategy Fund						2x Strategy Fund
Year			Year			Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008			2007			2008			2007			2008			2007
$	(342,309	)	$	140,368		$	16,229		$	814,033		$	158,278		$	361,467		$	(188,405	)	$	205,829
	(10,909,643	)		11,931,932			8,517,408			(5,163,846	)		(30,556,220	)		1,141,227			(33,477,320	)		(4,011,465	)
	(17,937,578	)		(503,303	)		(105,566	)		(201,817	)		(1,174,945	)		(1,476,028	)		(7,713,199	)		4,523,444
	(29,189,530	)		11,568,997			8,428,071			(4,551,630	)		(31,572,887	)		26,666			(41,378,924	)		717,808
	(77,200	)		(63,168	)		(66,793	)		(906,240	)		—			(354,038	)		(42,494	)		(186,716	)
	—			—			—			—			—			(3,786,307	)		—			—
	(77,200	)		(63,168	)		(66,793	)		(906,240	)		—			(4,140,345	)		(42,494	)		(186,716	)
	235,783,846			352,847,814			350,204,615			1,210,258,728			359,293,713			206,969,261			379,346,745			1,067,742,482
	77,200			63,168			66,793			906,240			—			4,140,345			42,494			186,716
	(256,100,482	)		(354,795,402	)		(360,145,407	)		(1,215,995,634	)		(337,636,561	)		(208,230,256	)		(379,689,311	)		(1,033,063,920	)
	(20,239,436	)		(1,884,420	)		(9,873,999	)		(4,830,666	)		21,657,152			2,879,350			(300,072	)		34,865,278
	—			—			—			—			—			—			—			—
	(49,506,166	)		9,621,409			(1,512,721	)		(10,288,536	)		(9,915,735	)		(1,234,329	)		(41,721,490	)		35,396,370
	82,492,496			72,871,087			13,640,087			23,928,623			36,428,922			37,663,251			65,068,982			29,672,612
$	32,986,330		$	82,492,496		$	12,127,366		$	13,640,087		$	26,513,187		$	36,428,922		$	23,347,492		$	65,068,982
$	—		$	77,200		$	16,229		$	66,793		$	158,278		$	—		$	—		$	42,493

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    127

STATEMENTS OF CHANGES IN NET ASSETS (continued)

	Mid-Cap						Inverse Mid-Cap
	1.5x Strategy Fund						Strategy Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income	$	13,700		$	452,666		$	6,614		$	105,883
Net Realized Gain (Loss) on Investments		(8,844,290	)		(299,351	)		612,047			(236,703	)
Net Change in Unrealized Appreciation (Depreciation) on Investments		(1,351,147	)		(2,126,958	)		(243,768	)		(7,630	)
Net Increase (Decrease) in Net Assets from Operations		(10,181,737	)		(1,973,643	)		374,893			(138,450	)
Distributions to Shareholders from:
Net Investment Income		—			(470,418	)		(30,085	)		(119,992	)
Realized Gain on Investments		—			(3,554,938	)		—			—
Total Distributions to Shareholders		—			(4,025,356	)		(30,085	)		(119,992	)
Share Transactions
Proceeds from Shares Purchased		102,921,383			388,695,373			60,317,135			106,240,775
Value of Shares Purchased through Dividend Reinvestment		—			4,025,356			30,085			119,992
Cost of Shares Redeemed		(107,482,610	)		(397,814,356	)		(58,908,702	)		(109,031,843	)
Net Increase (Decrease) in Net Assets From Share Transactions		(4,561,227	)		(5,093,627	)		1,438,518			(2,671,076	)
Net Increase (Decrease) in Net Assets		(14,742,964	)		(11,092,626	)		1,783,326			(2,929,518	)
Net Assets—Beginning of Period		27,893,318			38,985,944			3,029,216			5,958,734
Net Assets—End of Period	$	13,150,354		$	27,893,318		$	4,812,542		$	3,029,216
Undistributed Net Investment Income—End of Period	$	13,700		$	—		$	—		$	18,025

128    |     THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Russell 2000®						Russell 2000®						Inverse Russell 2000®						Government Long Bond
2x Strategy Fund						1.5x Strategy Fund						Strategy Fund						1.2x Strategy Fund
Year			Year			Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008			2007			2008			2007			2008			2007
$	2,245		$	54,693		$	7,455		$	405,819		$	24,887		$	344,137		$	1,614,871		$	1,898,755
	(4,069,001	)		(987,631	)		(10,189,988	)		(156,131	)		1,985,466			286,881			15,787,577			1,053,605
	39,813			42,780			(57,299	)		(3,591,433	)		(258,727	)		(92,722	)		9,919,553			1,248,169
	(4,026,943	)		(890,158	)		(10,239,832	)		(3,341,745	)		1,751,626			538,296			27,322,001			4,200,529
	(54,736	)		(1,234	)		(24,991	)		(459,551	)		(77,668	)		(382,872	)		(1,614,871	)		(1,898,770	)
	—			(55,803	)		—			(1,542,506	)		—			—			—			—
	(54,736	)		(57,037	)		(24,991	)		(2,002,057	)		(77,668	)		(382,872	)		(1,614,871	)		(1,898,770	)
	66,696,125			51,531,314			228,443,245			367,099,100			245,228,300			207,784,835			474,352,681			463,570,772
	54,736			57,037			24,991			2,002,057			77,668			382,872			1,614,871			1,898,770
	(65,452,310	)		(49,020,342	)		(226,104,575	)		(414,989,632	)		(250,736,749	)		(209,025,910	)		(490,330,030	)		(465,941,934	)
	1,298,551			2,568,009			2,363,661			(45,888,475	)		(5,430,781	)		(858,203	)		(14,362,478	)		(472,392	)
	(2,783,128	)		1,620,814			(7,901,162	)		(51,232,277	)		(3,756,823	)		(702,779	)		11,344,652			1,829,367
	6,204,604			4,583,790			21,879,489			73,111,766			11,534,667			12,237,446			52,249,557			50,420,190
$	3,421,476		$	6,204,604		$	13,978,327		$	21,879,489		$	7,777,844		$	11,534,667		$	63,594,209		$	52,249,557
$	2,386		$	54,736		$	7,619		$	24,990		$	—		$	44,246		$	—		$	—

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    129

STATEMENTS OF CHANGES IN NET ASSETS (continued)

	Inverse Government						Europe
	Long Bond Strategy Fund						1.25x Strategy Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income (Loss)	$	(181,920	)	$	652,342		$	714,958		$	1,851,030
Net Realized Gain (Loss) on Investments		(4,483,885	)		(1,973,476	)		(16,143,193	)		2,171,852
Net Change in Unrealized Appreciation (Depreciation) on Investments		211,755			(827,112	)		(5,799,986	)		1,011,109
Net Increase (Decrease) in Net Assets from Operations		(4,454,050	)		(2,148,246	)		(21,228,221	)		5,033,991
Distributions to Shareholders from:
Net Investment Income		(57,414	)		(725,228	)		(154,314	)		(1,982,475	)
Realized Gain on Investments		—			—			(496,316	)		(8,037,155	)
Total Distributions to Shareholders		(57,414	)		(725,228	)		(650,630	)		(10,019,630	)
Share Transactions
Proceeds from Shares Purchased		319,401,142			178,977,020			79,201,238			219,995,801
Value of Shares Purchased through Dividend Reinvestment		57,414			725,228			650,630			10,019,630
Cost of Shares Redeemed		(321,933,649	)		(188,463,694	)		(128,270,198	)		(231,687,377	)
Net Increase (Decrease) in Net Assets From Share Transactions		(2,475,093	)		(8,761,446	)		(48,418,330	)		(1,671,946	)
Net Increase (Decrease) in Net Assets		(6,986,557	)		(11,634,920	)		(70,297,181	)		(6,657,585	)
Net Assets—Beginning of Period		17,611,452			29,246,372			82,832,659			89,490,244
Net Assets—End of Period	$	10,624,895		$	17,611,452		$	12,535,478		$	82,832,659
Undistributed Net Investment Income—End of Period	$	—		$	57,414		$	517,214		$	154,313

130    |     THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Japan						Dow						Inverse Dow						Small-Cap
1.25x Strategy Fund						2x Strategy Fund						2x Strategy Fund						Value Fund
Year			Year			Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008			2007			2008			2007			2008			2007
$	31,969		$	808,841		$	259,851		$	442,216		$	(6,737	)	$	580,349		$	198,801		$	117,534
	(6,666,124	)		(2,407,314	)		(20,232,026	)		(1,498,294	)		10,429,174			(2,623,725	)		(10,574,577	)		(875,146	)
	1,520,735			(1,209,398	)		(4,158,392	)		(41,827	)		(766,102	)		807,666			(66,716	)		(2,300,846	)
	(5,113,420	)		(2,807,871	)		(24,130,567	)		(1,097,905	)		9,656,335			(1,235,710	)		(10,442,492	)		(3,058,458	)
	(76,368	)		(1,177,302	)		(405,000	)		(428,235	)		(65,614	)		(650,488	)		(117,535	)		(29,154	)
	—			—			—			(4,564,672	)		(4,005,690	)		—			—			(2,089,925	)
	(76,368	)		(1,177,302	)		(405,000	)		(4,992,907	)		(4,071,304	)		(650,488	)		(117,535	)		(2,119,079	)
	82,969,661			136,271,443			216,705,153			210,572,797			387,121,913			148,035,616			61,739,467			47,931,806
	76,368			1,177,302			405,000			4,992,907			4,071,304			650,488			117,535			2,119,079
	(80,320,566	)		(148,405,041	)		(201,051,518	)		(210,015,349	)		(396,959,455	)		(151,968,697	)		(50,696,367	)		(69,287,218	)
	2,725,463			(10,956,296	)		16,058,635			5,550,355			(5,766,238	)		(3,282,593	)		11,160,635			(19,236,333	)
	(2,464,325	)		(14,941,469	)		(8,476,932	)		(540,457	)		(181,207	)		(5,168,791	)		600,608			(24,413,870	)
	15,568,221			30,509,690			44,824,796			45,365,253			11,884,610			17,053,401			9,709,650			34,123,520
$	13,103,896		$	15,568,221		$	36,347,864		$	44,824,796		$	11,703,403		$	11,884,610		$	10,310,258		$	9,709,650
$	31,969		$	76,368		$	—		$	136,108		$	—		$	59,582		$	198,801		$	117,535

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    131

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Mid-Cap						Large-Cap
	Value Fund						Value Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income (Loss)	$	266,722		$	282,228		$	438,407		$	672,543
Net Realized Gain (Loss) on Investments		(7,541,970	)		1,578,360			(11,659,693	)		5,047,817
Net Change in Unrealized Appreciation (Depreciation) on Investments		(785,062	)		(2,259,896	)		4,873			(5,927,846	)
Net Increase (Decrease) in Net Assets from Operations		(8,060,310	)		(399,308	)		(11,216,413	)		(207,486	)
Distributions to Shareholders from:
Net Investment Income		—			(366,943	)		(173,272	)		(639,172	)
Realized Gain on Investments		(1,633,526	)		(17,776	)		(2,551,427	)		(4,733,675	)
Total Distributions to Shareholders		(1,633,526	)		(384,719	)		(2,724,699	)		(5,372,847	)
Share Transactions
Proceeds from Shares Purchased		37,059,547			119,801,427			79,752,005			188,096,688
Value of Shares Purchased through Dividend Reinvestment		1,633,526			384,719			2,724,699			5,372,847
Cost of Shares Redeemed		(37,401,992	)		(131,658,649	)		(83,856,157	)		(246,412,645	)
Net Increase (Decrease) in Net Assets From Share Transactions		1,291,081			(11,472,503	)		(1,379,453	)		(52,943,110	)
Net Increase (Decrease) in Net Assets		(8,402,755	)		(12,256,530	)		(15,320,565	)		(58,523,443	)
Net Assets—Beginning of Period		15,997,792			28,254,322			24,799,284			83,322,727
Net Assets—End of Period	$	7,595,037		$	15,997,792		$	9,478,719		$	24,799,284
Undistributed Net Investment Income—End of Period	$	266,722		$	—		$	438,407		$	173,272

132    |     THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Small-Cap						Mid-Cap						Large-Cap						U.S. Government
Growth Fund						Growth Fund						Growth Fund						Money Market Fund
Year			Year			Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008			2007			2008			2007			2008			2007
$	(5,119	)	$	(185,034	)	$	(207,818	)	$	(181,849	)	$	(93,835	)	$	(150,559	)	$	3,944,200		$	10,144,753
	(6,099,762	)		(146,038	)		(6,088,855	)		(828,789	)		(9,182,357	)		(1,379,474	)		77,579			—
	(281,627	)		(1,001,524	)		(3,409,958	)		1,414,199			(2,461,497	)		1,634,631			—			—
	(6,386,508	)		(1,332,596	)		(9,706,631	)		403,561			(11,737,689	)		104,598			4,021,779			10,144,753
	—			—			—			—			—			—			(3,944,200	)		(10,144,753	)
	—			(1,579,622	)		—			(2,700,731	)		—			(715,291	)		—			—
	—			(1,579,622	)		—			(2,700,731	)		—			(715,291	)		(3,944,200	)		(10,144,753	)
	80,629,274			119,144,626			93,243,235			182,659,368			96,181,370			153,983,619			1,084,838,242			1,479,694,976
	—			1,579,622			—			2,700,731			—			715,291			3,944,200			10,144,753
	(72,953,255	)		(128,683,642	)		(97,781,591	)		(172,563,004	)		(107,512,062	)		(141,380,688	)		(1,005,259,657	)		(1,420,642,029	)
	7,676,019			(7,959,394	)		(4,538,356	)		12,797,095			(11,330,692	)		13,318,222			83,522,785			69,197,700
	1,289,511			(10,871,612	)		(14,244,987	)		10,499,925			(23,068,381	)		12,707,529			83,600,364			69,197,700
	12,427,964			23,299,576			25,939,708			15,439,783			36,275,146			23,567,617			277,345,537			208,147,837
$	13,717,475		$	12,427,964		$	11,694,721		$	25,939,708		$	13,206,765		$	36,275,146		$	360,945,901		$	277,345,537
$	—		$	—		$	—		$	—		$	—		$	—		$	7,497		$	7,497

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    133

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.

																																		RATIOS TO
																																		AVERAGE NET ASSETS:
									Net Increase
						Net Realized			(Decrease)
	NET ASSET		Net			and			in Net Asset			Distributions			Distributions											Net Increase			NET ASSET								Net						Net Assets,
	VALUE,		Investment			Unrealized			Value			from Net			from Net									Other		(Decrease) in			VALUE,		Total						Investment			Portfolio			End of
	BEGINNING		Income			Gains (Losses)			Resulting from			Investment			Realized			Return of			Total			Capital		Net Asset			END OF		Investment			Total			Income			Turnover			Period (000’s
Year Ended	OF PERIOD		(Loss)†			on Investments			Operations			Income			Gains			Capital			Distributions			Items		Value			PERIOD		Return††			Expenses			(Loss)			Rate			omitted)
Nova Fund
December 31, 2008†††	$	100.60	$	.60		$	(55.40	)	$	(54.80	)	$	(.30	)	$	—		$	—		$	(.30	)		—	$	(55.10	)	$	45.50		(54.47)	%		1.52	%		0.75	%		182	%	$	35,087
December 31, 2007†††		100.90		1.20			—			1.20			(1.50	)		—			—			(1.50	)		—		(.30	)		100.60		1.13	%		1.46	%		1.12	%		94	%		82,191
December 31, 2006†††		85.60		1.10			15.40			16.50			(1.20	)		—			—			(1.20	)		—		15.30			100.90		19.27	%		1.48	%		1.18	%		211	%		134,477
December 31, 2005†††		82.60		.50			2.80			3.30			(.30	)		—			—			(.30	)		—		3.00			85.60		3.97	%		1.53	%		0.60	%		381	%		132,018
December 31, 2004†††		72.10		.30			10.20			10.50			(—	) §		—			—			(—	) §		—		10.50			82.60		14.62	%		1.46	%		0.41	%		654	%		130,200
Inverse S&P 500 Strategy Fund
December 31, 2008		42.21		(.07	)		16.17			16.10			(.36	)		—			—			(.36	)		.49▲		16.23			58.44		39.25	%		1.67	%		(0.14)	%		—			23,877
December 31, 2007		43.90		1.35			(1.00	)		.35			(2.04	)		—			—			(2.04	)		—		(1.69	)		42.21		0.83	%		1.63	%		3.04	%		—			21,581
December 31, 2006†††		51.50		1.70			(5.60	)		(3.90	)		(3.70	)		—			—			(3.70	)		—		(7.60	)		43.90		(7.50)	%		1.63	%		3.29	%		—			19,025
December 31, 2005†††		51.90		.80			(1.20	)		(.40	)		—			—			—			—			—		(.40	)		51.50		(0.77)	%		1.70	%		1.46	%		—			32,505
December 31, 2004†††		57.70		(.20	)		(5.60	)		(5.80	)		—			—			—			—			—		(5.80	)		51.90		(10.05)	%		1.62	%		(0.28)	%		—			19,076
NASDAQ-100® Fund
December 31, 2008		18.12		(.09	)		(7.51	)		(7.60	)		(.02	)		—			—			(.02	)		—		(7.62	)		10.50		(41.91)	%		1.55	%		(0.62)	%		107	%		32,986
December 31, 2007		15.39		.03			2.71			2.74			(.01	)		—			—			(.01	)		—		2.73			18.12		17.82	%		1.51	%		0.18	%		110	%		82,492
December 31, 2006		14.55		(.07	)		.91			.84			—			—			—			—			—		.84			15.39		5.77	%		1.49	%		(0.50)	%		152	%		72,871
December 31, 2005		14.39		(.09	)		.25			.16			—			—			—			—			—		.16			14.55		1.11	%		1.50	%		(0.68)	%		294	%		102,487
December 31, 2004		13.16		(.02	)		1.25			1.23			—			—			—			—			—		1.23			14.39		9.35	%		1.47	%		(0.17)	%		418	%		191,476
Inverse NASDAQ-100® Strategy Fund
December 31, 2008		16.99		.02			8.13			8.15			(.09	)		—			—			(.09	)		—		8.06			25.05		47.96	%		1.70	%		0.08	%		—			12,127
December 31, 2007		19.79		.64			2.87			(2.23	)		(.57	)		—			—			(.57	)		—		(2.80	)		16.99		(11.28)	%		1.68	%		3.40	%		—			13,640
December 31, 2006		21.51		.74			(1.07	)		(.33	)		(1.39	)		—			—			(1.39	)		—		(1.72	)		19.79		(1.40)	%		1.64	%		3.35	%		—			23,929
December 31, 2005		21.24		.33			(.06	)		.27			—			—			—			—			—		.27			21.51		1.27	%		1.63	%		1.49	%		—			19,648
December 31, 2004		24.09		(.08	)		(2.77	)		(2.85	)		—			—			—			—			—		(2.85	)		21.24		(11.83)	%		1.64	%		(0.35)	%		—			23,928
S&P 500 2x Strategy Fund
December 31, 2008†††		192.40		.70			(131.51	)		(130.81	)		—			—			—			—			—		(130.81	)		61.59		(67.98)	%		1.67	%		0.56	%		305	%		26,513
December 31, 2007†††		217.10		2.60			(.80	)		1.80			(2.30	)		(24.20	)		—			(26.50	)		—		(24.70	)		192.40		0.61	%		1.62	%		1.12	%		104	%		36,429
December 31, 2006†††		183.70		2.30			41.20			43.50			(2.00	)		(8.10	)		—			(10.10	)		—		33.40			217.10		23.70	%		1.64	%		1.13	%		168	%		37,663
December 31, 2005†††		198.30		1.00			5.30			6.30			(.20	)		(20.70	)		—			(20.90	)		—		(14.60	)		183.70		3.38	%		1.65	%		0.55	%		585	%		25,397
December 31, 2004†††		215.90		.20			29.80			30.00			—			(47.60	)		—			(47.60	)		—		(17.60	)		198.30		16.90	%		1.65	%		0.09	%		974	%		29,053
NASDAQ-100® 2x Strategy Fund
December 31, 2008		29.98		(.10	)		(21.66	)		(21.76	)		(.02	)		—			—			(.02	)		—		(21.78	)		8.20		(72.60)	%		1.72	%		(0.53)	%		175	%		23,347
December 31, 2007		23.46		.13			6.49			6.62			(.10	)		—			—			(.10	)		—		6.52			29.98		28.20	%		1.66	%		0.45	%		203	%		65,069
December 31, 2006		22.39		.03			1.06			1.09			(.02	)		—			—			(.02	)		—		1.07			23.46		4.86	%		1.65	%		0.14	%		250	%		29,673
December 31, 2005		23.09		(.09	)		(.61	)		(.70	)		—			—			—			—			—		(.70	)		22.39		(3.03)	%		1.65	%		(0.42)	%		343	%		44,313
December 31, 2004		21.73		(.06	)		2.76			2.70			(.97	)		(.06	)		(.31	)		(1.34	)		—		1.36			23.09		14.21	%		1.65	%		(0.29)	%		662	%		57,599
Mid-Cap 1.5x Strategy Fund
December 31, 2008		21.72		.01			(11.92	)		(11.91	)		—			—			—			—			—		(11.91	)		9.81		(54.83)	%		1.66	%		0.07	%		163	%		13,150
December 31, 2007		24.20		.28			.65			.93			(.40	)		(3.01	)		—			(3.41	)		—		(2.48	)		21.72		3.60	%		1.64	%		1.05	%		368	%		27,893
December 31, 2006		30.15		.11			3.23			3.34			(.13	)		(9.16	)		—			(9.29	)		—		(5.95	)		24.20		10.46	%		1.64	%		0.34	%		478	%		38,986
December 31, 2005		26.50		(.02	)		3.75			3.73			—			(.08	)		—			(.08	)		—		3.65			30.15		14.07	%		1.65	%		(0.05)	%		573	%		51,197
December 31, 2004		24.74		(.09	)		4.96			4.87			—			(3.11	)		—			(3.11	)		—		1.76			26.50		22.14	%		1.64	%		(0.37)	%		866	%		34,162

134    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

FINANCIAL HIGHLIGHTS (continued)

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.

																													RATIOS TO
																													AVERAGE NET ASSETS:
									Net Increase
						Net Realized			(Decrease)
	NET ASSET		Net			and			in Net Asset			Distributions			Distributions						Net Increase			NET ASSET											Net						Net Assets,
	VALUE,		Investment			Unrealized			Value			from Net			from Net						(Decrease) in			VALUE,		Total									Investment			Portfolio			End of
	BEGINNING		Income			Gains (Losses)			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Operating			Income			Turnover			Period (000’s
Year Ended	OF PERIOD		(Loss)†			on Investments			Operations			Income			Gains			Distributions			Value			PERIOD		Return††			Expenses			Expenses			(Loss)			Rate			omitted)
Inverse Mid-Cap Strategy Fund
December 31, 2008	$	35.03	$	.05		$	12.04		$	12.09		$	(.32	)	$	—		$	(.32	)	$	11.77		$	46.80		34.42	%		1.67	%		1.67	%		0.12	%		—		$	4,813
December 31, 2007		36.96		1.06			(1.81	)		(.75	)		(1.18	)		—			(1.18	)		(1.93	)		35.03		(1.98	)%		1.67	%		1.67	%		3.04	%		—			3,029
December 31, 2006		39.15		1.32			(2.83	)		(1.51	)		(.68	)		—			(.68	)		(2.19	)		36.96		(3.83	)%		1.65	%		1.65	%		3.49	%		—			5,959
December 31, 2005		44.03		.70			(4.31	)		(3.61	)		(1.27	)		—			(1.27	)		(4.88	)		39.15		(8.16	)%		1.64	%		1.64	%		1.65	%		—			2,846
December 31, 2004*		50.00		(.06	)		(5.91	)		(5.97	)		—			—			—			(5.97	)		44.03		(11.94	)%		1.62	%**		1.62	%**		(0.17	)%**		—			1,319
Russell 2000® 2x Strategy Fund
December 31, 2008†††		224.30		.10			(148.93	)		(148.83	)		(1.80	)		—			(1.80	)		(150.63	)		73.67		(66.18	)%		1.68	%		1.68	%		0.06	%		347	%		3,421
December 31, 2007†††		259.70		2.50			(35.20	)		(32.70	)		(.10	)		(2.60	)		(2.70	)		(35.40	)		224.30		(12.59	)%		1.64	%		1.64	%		0.95	%		174	%		6,205
December 31, 2006*†††		250.00		.50			9.60			10.10			(.40	)		—			(.40	)		9.70			259.70		4.06	%		1.64	%**		1.64	%**		1.02	%**		60	%		4,584
Russell 2000® 1.5x Strategy Fund
December 31, 2008		34.20		.01			(17.58	)		(17.57	)		(.06	)		—			(.06	)		(17.63	)		16.57		(51.36	)%		1.68	%		1.68	%		0.05	%		490	%		13,978
December 31, 2007		41.14		.49			(3.26	)		(2.77	)		(.96	)		(3.21	)		(4.17	)		(6.94	)		34.20		(6.74	)%		1.66	%		1.66	%		1.16	%		354	%		21,879
December 31, 2006		34.14		.19			6.93			7.12			(.12	)		—			(.12	)		7.00			41.14		20.85	%		1.64	%		1.64	%		0.49	%		380	%		73,112
December 31, 2005		33.65		.01			1.31			1.32			(.83	)		—			(.83	)		.49			34.14		3.91	%		1.63	%		1.63	%		0.04	%		404	%		38,589
December 31, 2004		29.75		(.10	)		6.95			6.85			—			(2.95	)		(2.95	)		3.90			33.65		25.20	%		1.65	%		1.65	%		(0.32	)%		1,171	%		112,649
Inverse Russell 2000® Strategy Fund
December 31, 2008		34.66		.08			8.54			8.62			(.58	)		—			(.58	)		8.04			42.70		24.69	%		1.69	%		1.69	%		0.22	%		—			7,778
December 31, 2007		34.61		1.10			.76			1.86			(1.81	)		—			(1.81	)		.05			34.66		5.37	%		1.67	%		1.67	%		3.19	%		—			11,535
December 31, 2006		40.60		1.30			(6.16	)		(4.86	)		(1.13	)		—			(1.13	)		(5.99	)		34.61		(11.95	)%		1.64	%		1.64	%		3.48	%		—			12,237
December 31, 2005		42.83		.65			(1.98	)		(1.33	)		(.90	)		—			(.90	)		(2.23	)		40.60		(3.07	)%		1.63	%		1.63	%		1.49	%		—			11,850
December 31, 2004*		50.00		(.10	)		(7.07	)		(7.17	)		—			—			—			(7.17	)		42.83		(14.34	)%		1.65	%**		1.65	%**		(0.29	)%**		—			4,344
Government Long Bond 1.2x Strategy Fund
December 31, 2008		12.24		.35			5.00			5.35			(.35	)		—			(.35	)		5.00			17.24		44.87	%		1.22	%		1.22	%		2.75	%		1,372	%		63,594
December 31, 2007		11.56		.41			.68			1.09			(.41	)		—			(.41	)		.68			12.24		9.77	%		1.20	%		1.20	%		3.60	%		1,367	%		52,250
December 31, 2006		12.38		.42			(.82	)		(.40	)		(.42	)		—			(.42	)		(.82	)		11.56		(3.14	)%		1.20	%		1.20	%		3.66	%		1,339	%		50,420
December 31, 2005		11.88		.41			.50			.91			(.41	)		—			(.41	)		.50			12.38		7.71	%		1.18	%		1.18	%		3.30	%		1,284	%		60,160
December 31, 2004		11.67		.40			.54			.94			(.40	)		(.33	)		(.73	)		.21			11.88		8.42	%		1.21	%		1.21	%		3.36	%		1,318	%		48,709
Inverse Government Long Bond Strategy Fund
December 31, 2008		19.58		(.21	)		(5.68	)		(5.89	)		(.09	)		—			(.09	)		(5.98	)		13.60		(30.21	)%		4.12	%		1.65	%à		(1.12	)%		2,851	%		10,625
December 31, 2007		21.55		.70			(1.67	)		(.97	)		(1.00	)		—			(1.00	)		(1.97	)		19.58		(4.51	)%		3.83	%		1.63	%à		3.17	%		1,123	%		17,611
December 31, 2006		20.80		.69			.97			1.66			(.91	)		—			(.91	)		.75			21.55		8.11	%		5.12	%		1.63	%à		3.08	%		597	%		29,246
December 31, 2005		21.95		(.07	)		(1.08	)		(1.15	)		—			—			—			(1.15	)		20.80		(5.24	)%		5.11	%		1.63	%à		(0.33	)%		589	%		29,671
December 31, 2004		24.82		(.66	)		(1.98	)		(2.64	)		—			(.23	)		(.23	)		(2.87	)		21.95		(10.67	)%		5.02	%		1.63	%à		(2.86	)%		—			41,098
Europe 1.25x Strategy Fund
December 31, 2008		29.95		.55			(17.04	)		(16.49	)		(.19	)		(.62	)		(.81	)		(17.30	)		12.65		(54.86	)%		1.67	%		1.67	%		2.33	%		111	%		12,535
December 31, 2007		29.60		.70			3.26			3.96			(.71	)		(2.90	)		(3.61	)		.35			29.95		13.06	%		1.63	%		1.63	%		2.18	%		220	%		82,833
December 31, 2006		23.84		.70			6.31			7.01			(.48	)		(.77	)		(1.25	)		5.76			29.60		29.51	%		1.65	%		1.65	%		2.55	%		219	%		89,490
December 31, 2005		22.62		.21			1.23			1.44			(.09	)		(.13	)		(.22	)		1.22			23.84		6.36	%		1.63	%		1.63	%		0.94	%		399	%		25,954
December 31, 2004		22.87		(.05	)		3.71			3.66			(3.82	)		(.09	)		(3.91	)		(.25	)		22.62		16.15	%		1.64	%		1.64	%		(0.23	)%		—			54,994

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    135

FINANCIAL HIGHLIGHTS (continued)

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.

									Net Increase																						RATIOS TO
						Net Realized			(Decrease)																						AVERAGE NET ASSETS:
	NET ASSET		Net			and			in Net Asset			Distributions			Distributions								Net Increase			NET ASSET								Net							Net Assets,
	VALUE,		Investment			Unrealized			Value			from Net			from Net						Payments		(Decrease) in			VALUE,		Total							Investment			Portfolio			End of
	BEGINNING		Income			Gains (Losses)			Resulting from			Investment			Realized			Total			by		Net Asset			END OF		Investment			Total				Income			Turnover			Period (000’s
Year Ended	OF PERIOD		(Loss)†			on Investments			Operations			Income			Gains			Distributions			Affiliates		Value			PERIOD		Return††			Expenses				(Loss)			Rate			omitted)
Japan 1.25x Strategy Fund
December 31, 2008	$	22.73	$	.05		$	(7.86	)	$	(7.81	)	$	(.13	)	$	—		$	(.13	)	$	.29■	$	(7.65	)	$	15.08		(32.97	)%		1.65	%			0.25	%		—		$	13,104
December 31, 2007		27.13		.88			(3.83	)		(2.95	)		(1.45	)		—			(1.45	)		—		(4.40	)		22.73		(11.23	)%		1.64	%			3.32	%		—			15,568
December 31, 2006		33.42		1.02			.50			1.52			(1.29	)		(6.52	)		(7.81	)		—		(6.29	)		27.13		5.14	%		1.63	%			2.99	%		—			30,510
December 31, 2005		27.77		.48			5.17			5.65			—			—			—			—		5.65			33.42		20.35	%		1.70	%			1.72	%		—			55,219
December 31, 2004		25.17		(.14	)		2.74			2.60			—			—			—			—		2.60			27.77		10.33	%		1.63	%			(0.50	)%		—			14,228
Dow 2x Strategy Fund
December 31, 2008†††		128.50		.75			(80.11	)		(79.36	)		(.90	)		—			(.90	)		—		(80.26	)		48.24		(61.71	)%		1.68	%			0.90	%		78	%		36,348
December 31, 2007†††		134.45		1.80			9.65			11.45			(1.50	)		(15.90	)		(17.40	)		—		(5.95	)		128.50		8.15	%		1.63	%			1.22	%		105	%		44,825
December 31, 2006†††		115.50		2.00			32.90			34.90			(.75	)		(15.20	)		(15.95	)		—		18.95			134.45		30.54	%		1.65	%			1.52	%		224	%		45,365
December 31, 2005†††		129.45		1.20			(6.25	)		(5.05	)		(.85	)		(8.05	)		(8.90	)		—		(13.95	)		115.50		(3.81	)%		1.67	%			1.03	%		666	%		12,920
December 31, 2004*†††		125.00		.70			10.15			10.85			(5.80	)		(.60	)		(6.40	)		—		4.45			129.45		8.65	%		1.63	%**			0.91	%**		907	%		10,419
Inverse Dow 2x Strategy Fund
December 31, 2008		28.79		(.01	)		18.12			18.11			(.18	)		(11.11	)		(11.29	)		—		6.82			35.61		60.84	%		1.69	%			(0.03	)%		—			11,703
December 31, 2007		33.34		1.02			(4.06	)		(3.04	)		(1.51	)		—			(1.51	)		—		(4.55	)		28.79		(8.99	)%		1.66	%			3.36	%		—			11,885
December 31, 2006		43.20		1.35			(10.75	)		(9.40	)		(.46	)		—			(.46	)		—		(9.86	)		33.34		(21.77	)%		1.64	%			3.61	%		—			17,053
December 31, 2005		43.22		.74			(.06	)		.68			(.70	)		—			(.70	)		—		(.02	)		43.20		1.63	%		1.65	%			1.67	%		—			7,257
December 31, 2004*		50.00		(.03	)		(5.71	)		(5.74	)		—			(1.04	)		(1.04	)		—		(6.78	)		43.22		(11.47	)%		1.62	%**			(0.09	)%**		—			3,184
Small-Cap Value Fund
December 31, 2008†††		91.10		1.20			(40.87	)		(39.67	)		(.60	)		—			(.60	)		—		(40.27	)		50.83		(43.50	)%		1.52	%			1.60	%		391	%		10,310
December 31, 2007†††		143.00		.95			(29.85	)		(28.90	)		(.30	)		(22.70	)		(23.00	)		—		(51.90	)		91.10		(20.36	)%		1.49	%			0.66	%		241	%		9,710
December 31, 2006†††		128.35		.90			23.70			24.60			(.85	)		(9.10	)		(9.95	)		—		14.65			143.00		19.21	%		1.49	%			0.64	%		433	%		34,124
December 31, 2005†††		144.20		(.25	)		5.65			5.40			—			(21.25	)		(21.25	)		—		(15.85	)		128.35		3.64	%		1.47	%			(0.16	)%		825	%		19,035
December 31, 2004*†††		125.00		.05			22.50			22.55			(.05	)		(3.30	)		(3.35	)		—		19.20			144.20		18.03	%		1.46	%**			0.07	%**		507	%		47,274
Mid-Cap Value Fund
December 31, 2008†††		104.20		1.75			(47.84	)		(46.09	)		—			(14.65	)		(14.65	)		—		(60.74	)		43.46		(43.63	)%		1.51	%			2.06	%		255	%		7,595
December 31, 2007†††		111.90		1.05			(6.45	)		(5.40	)		(2.20	)		(.10	)		(2.30	)		—		(7.70	)		104.20		(4.85	)%		1.49	%			0.87	%		358	%		15,998
December 31, 2006†††		96.35		1.40			15.05			16.45			(.90	)		—			(.90	)		—		15.55			111.90		17.08	%		1.49	%			1.37	%		307	%		28,254
December 31, 2005†††		135.40		.35			11.40			11.75			(1.00	)		(49.80	)		(50.80	)		—		(39.05	)		96.35		8.32	%		1.48	%			0.26	%		1,133	%		14,232
December 31, 2004*†††		125.00		—			19.00			19.00			(—	) §		(8.60	)		(8.60	)		—		10.40			135.40		15.20	%		1.48	%**			0.01	%**		1,173	%		19,479
Large-Cap Value Fund
December 31, 2008†††		126.85		2.35			(65.04	)		(62.69	)		(1.15	)		(17.20	)		(18.35	)		—		(81.04	)		45.81		(48.65	)%		1.51	%			2.42	%		389	%		9,479
December 31, 2007†††		158.90		2.10			(10.15	)		(8.05	)		(2.85	)		(21.15	)		(24.00	)		—		(32.05	)		126.85		(5.37	)%		1.49	%			1.28	%		307	%		24,799
December 31, 2006†††		139.50		1.95			22.65			24.60			(1.25	)		(3.95	)		(5.20	)		—		19.40			158.90		17.66	%		1.50	%			1.29	%		401	%		83,323
December 31, 2005†††		138.40		1.05			4.75			5.80			(.75	)		(3.95	)		(4.70	)		—		1.10			139.50		4.19	%		1.50	%			0.77	%		493	%		24,547
December 31, 2004*†††		125.00		.60			15.00			15.60			(.55	)		(1.65	)		(2.20	)		—		13.40			138.40		12.49	%		1.45	%**			0.69	%**		983	%		11,144
Small-Cap Growth Fund
December 31, 2008		27.07		(.01	)		(9.28	)		(9.29	)		—			—			—			—		(9.29	)		17.78		(34.32	)%		1.52	%			(0.04	)%		465	%		13,717
December 31, 2007		29.92		(.28	)		.30			.02			—			(2.87	)		(2.87	)		—		(2.85	)		27.07		(0.11	)%		1.49	%			(0.90	)%		573	%		12,428
December 31, 2006		28.64		(.31	)		2.54			2.23			—			(.95	)		(.95	)		—		1.28			29.92		7.73	%		1.49	%			(1.01	)%		769	%		23,300
December 31, 2005		28.55		(.21	)		2.00			1.79			—			(1.70	)		(1.70	)		—		.09			28.64		6.20	%		1.50	%			(0.72	)%		737	%		24,308
December 31, 2004*		25.00		(.17	)		4.12			3.95			—			(.40	)		(.40	)		—		3.55			28.55		15.82	%		1.46	%**			(0.93	)%**		733	%		30,269

136    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

FINANCIAL HIGHLIGHTS (concluded)

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.

									Net Increase																				RATIOS TO
						Net Realized			(Decrease)																				AVERAGE NET ASSETS:
	NET ASSET		Net			and			in Net Asset			Distributions			Distributions						Net Increase			NET ASSET											Net						Net Assets,
	VALUE,		Investment			Unrealized			Value			from Net			from Net						(Decrease) in			VALUE,		Total									Investment			Portfolio			End of
	BEGINNING		Income			Gains (Losses)			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Net			Income			Turnover			Period (000’s
Year Ended	OF PERIOD		(Loss)†			on Investments			Operations			Income			Gains			Distributions			Value			PERIOD		Return††			Expenses			Expenses			(Loss)			Rate			omitted)
Mid-Cap Growth Fund
December 31, 2008	$	29.51	$	(.24	)	$	(10.42	)	$	(10.66	)	$	—		$	—		$	—		$	(10.66	)	$	18.85		(36.12)	%		1.51	%		1.51	%		(0.89)	%		381	%	$	11,695
December 31, 2007		29.33		(.19	)		2.69			2.50			—			(2.32	)		(2.32	)		.18			29.51		8.42	%		1.48	%		1.48	%		(0.61)	%		591	%		25,940
December 31, 2006		30.24		(.28	)		1.26			.98			—			(1.89	)		(1.89	)		(.91	)		29.33		3.13	%		1.47	%		1.47	%		(0.90)	%		462	%		15,440
December 31, 2005		27.13		(.20	)		3.31			3.11			—			—			—			3.11			30.24		11.46	%		1.52	%		1.52	%		(0.70)	%		1,178	%		53,035
December 31, 2004*		25.00		(.13	)		2.26			2.13			—			—			—			2.13			27.13		8.52	%		1.46	%**		1.46	%**		(0.75)	%**		875	%		20,702
Large-Cap Growth Fund
December 31, 2008		27.36		(.09	)		(10.80	)		(10.89	)		—			—			—			(10.89	)		16.47		(39.80)	%		1.51	%		1.51	%		(0.40)	%		360	%		13,207
December 31, 2007		26.68		(.16	)		1.46			1.30			—			(.62	)		(.62	)		.68			27.36		4.87	%		1.48	%		1.48	%		(0.57)	%		521	%		36,275
December 31, 2006		25.69		(.17	)		1.56			1.39			—			(.40	)		(.40	)		.99			26.68		5.40	%		1.49	%		1.49	%		(0.66)	%		612	%		23,568
December 31, 2005		25.75		(.01	)		.47			.46			(.02	)		(.50	)		(.52	)		(.06	)		25.69		1.77	%		1.52	%		1.52	%		(0.03)	%		1,111	%		22,538
December 31, 2004*		25.00		.36			.71			1.07			(.15	)		(.17	)		(.32	)		.75			25.75		4.26	%		1.46	%**		1.46	%**		2.12	%**		1,087	%		20,012
U.S. Government Money Market Fund
December 31, 2008		1.00		.01			—			.01			(.01	)		—			(.01	)		—			1.00		1.14	%		1.22	%		1.22	%		1.09	%		—			360,946
December 31, 2007		1.00		.04			—			.04			(.04	)		—			(.04	)		—			1.00		3.90	%		1.19	%		1.19	%		3.80	%		—			277,346
December 31, 2006		1.00		.04			—			.04			(.04	)		—			(.04	)		—			1.00		3.82	%		1.19	%		1.19	%		3.78	%		—			208,148
December 31, 2005		1.00		.02			—			.02			(.02	)		—			(.02	)		—			1.00		2.00	%		1.17	%		1.17	%		1.96	%		—			185,365
December 31, 2004		1.00		—§			—			—			(—)§			—			(—)§			—			1.00		0.23	%		1.19	%		1.10	%		0.20	%		—			167,678

*	Since the commencement of operations: May 3, 2004 — Inverse Mid-Cap Strategy Fund, Inverse Russell 2000® Strategy Fund, Dow 2x Strategy Fund, Inverse Dow 2x Strategy Fund, Small-Cap Value Fund, Mid-Cap Value Fund, Large-Cap Value Fund, Small-Cap Growth Fund, Mid-Cap Growth Fund, and Large-Cap Growth Fund; October 27, 2006 — Russell 2000® 2x Strategy Fund.
**	Annualized
†	Calculated using the average daily shares outstanding for the period.
††	Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
†††	Per share amounts for periods ended:
	December 31, 2004—December 31, 2006 have been restated to reflect a 1:10 reverse share split effective April 23, 2007 — Inverse S&P 500 Strategy Fund
	December 31, 2004—December 31, 2008 have been restated to reflect a 1:10 reverse share split effective April 20, 2009 — Nova Fund and S&P 500 2x Strategy Fund
	December 31, 2004—December 31, 2008 have been restated to reflect a 1:5 reverse share split effective April 20, 2009 — Dow 2x Strategy Fund, Small-Cap Value Fund, Mid-Cap Value Fund and Large-Cap Value Fund
	December 31, 2006—December 31, 2008 have been restated to reflect a 1:10 reverse share split effective April 20, 2009 — Russell 2000® 2x Strategy Fund
§	Less than $.01 per share.
à	Operating Expenses exclude interest expense from securities sold short.
▲	Excluding the capital contribution, the Fund’s total return would have been 38.09%.
n	Excluding the reimbursement, the Fund’s total return would have been (34.25)%.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    137

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, 2008, 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.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, Inc. (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor 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.

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.

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.

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 are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a security is valued at the reported bid price, at the close of business. Short-term securities with a maturity of 60 days or less 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.

The value of domestic equity index and credit default 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 foreign equity and 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 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 Rydex Investments 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. Proceeds from lawsuits related to investment holdings

138    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

1

NOTES TO FINANCIAL STATEMENTS (continued)

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. 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 of net investment income in the remaining Funds and distributions of net realized gains in all Funds 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 records 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. Upon the purchase of an option by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, that Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, that Fund will realize a gain or loss depending on whether the proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, that Fund will realize 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 a Fund exercises a call option, the cost of the security purchased by that Fund upon exercise will be increased by the premium originally paid. When a 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 a Fund enters into a closing purchase transaction, that Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold).

F. The Trust may enter into stock and bond index futures contracts and options on such 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.

G. The Trust may enter 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 Trust may enter into credit default swap agreements where one party, the protection buyer, makes an upfront or periodic payment to a counterparty, the protection seller, in exchange for the right to receive a contingent payment. The maximum amount of the payment may equal the notional amount, at par, of the underlying index or security as a result of a related credit event. Upfront payments received or made by a Fund, are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. The credit default contracts 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 a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    139

2

NOTES TO FINANCIAL STATEMENTS (continued)

H. 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.

I. The Trust may enter into forward currency contracts primarily to hedge against foreign currency exchange rate risks on its non-U.S. dollar denominated investment securities. When entering into a forward currency contract, a Fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily and the corresponding unrealized gain or loss on the contracts, as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the Statement of Assets and Liabilities. Realized and unrealized gains and losses are included in the Statement of Operations.

J. 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, and enter into repurchase agreements.

K. 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.

L. 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 Trust may utilize short sales and a variety of derivative instruments, including options, futures, options on 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.

Short sales are transactions 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.

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 Rydex Investments 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.

There are several risks associated with credit default swaps. Credit default swaps involve the exchange of a fixed-rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor,” receiving a periodic payment that is a fixed percentage applied to a notional principal

140    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

3

NOTES TO FINANCIAL STATEMENTS (continued)

amount. In return, the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. A Fund may enter into credit default swaps in which that Fund or its counterparty acts as guarantor. By acting as the guarantor of a swap, that Fund assumes the market and credit risk of the underlying instrument, including liquidity and loss of value.

In conjunction with the use of short sales, options, futures, options on 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, options, futures contracts, options on 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. Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays Rydex Investments 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 Small-Cap Value Fund, the Mid-Cap Value Fund, the Large-Cap Value Fund, the Small-Cap Growth Fund, the Mid-Cap Growth Fund and the Large-Cap Growth Fund; and 0.90% of the average daily net assets of the remaining Funds covered in this report.

Rydex Investments 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.

Rydex Investments 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.

Rydex Investments 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 a Distribution Services Plan for which the Distributor and other firms that provide shareholder services (“Service Providers”) may receive compensation. The Trust will pay fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets. The Distributor, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs.

During the year ended December 31, 2008, Rydex Investments reimbursed the Japan 1.25x Strategy Fund related to estimated losses on amounts receivable from Lehman Brothers Finance S.A. and certain of its affiliates.

On July 29, 2008, the Advisor voluntarily made a capital contribution to Inverse S&P 500 Strategy Fund to eliminate the tracking deviation from the Index.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

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 2005 — 2008), 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, losses deferred due to post-October losses, and excise tax regulations.

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. 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 RYDEX VARIABLE TRUST ANNUAL REPORT    |    141

4

NOTES TO FINANCIAL STATEMENTS (continued)

The Fund’s 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, 2008, the following Funds expired or offset net realized capital gains with capital losses from previous years:

Fund	Amount
Nova Fund	$	22,511,032
Inverse S&P 500 Strategy Fund		23,474,772
NASDAQ-100® Fund		65,045,522
Inverse NASDAQ-100® Strategy Fund		8,502,802
Inverse Mid-Cap Strategy Fund		938,294
Inverse Russell 2000® Strategy Fund		2,265,411
Government Long Bond 1.2x Strategy Fund		4,637,274
Inverse Dow 2x Strategy Fund		6,651,170
U.S. Government Money Market Fund		1,546

The tax character of distributions paid during the year ended December 31, 2008, was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Nova Fund	$	223,114	$	—	$	223,114
Inverse S&P 500 Strategy Fund		172,209		—		172,209
NASDAQ-100® Fund		77,200		—		77,200
Inverse NASDAQ-100® Strategy Fund		66,793		—		66,793
S&P500 2x Strategy Fund		—		—		—
NASDAQ-100® 2x Strategy Fund		42,494		—		42,494
Mid-Cap 1.5x Strategy Fund		—		—		—
Inverse Mid-Cap Strategy Fund		30,085		—		30,085
Russell 2000® 2x Strategy Fund		54,736		—		54,736
Russell 2000® 1.5x Strategy Fund		24,991		—		24,991
Inverse Russell 2000® Strategy Fund		77,668		—		77,668
Government Long Bond 1.2x Strategy Fund		1,614,871		—		1,614,871
Inverse Government Long Bond Strategy Fund		57,414		—		57,414
Europe 1.25x Strategy Fund		396,212		254,418		650,630
Japan 1.25x Strategy Fund		76,368		—		76,368
Dow 2x Strategy Fund		405,000		—		405,000
Inverse Dow 2x Strategy Fund		834,289		3,237,015		4,071,304
Small-Cap Value Fund		117,535		—		117,535
Mid-Cap Value Fund		177,210		1,456,316		1,633,526
Large-Cap Value Fund		173,272		2,551,427		2,724,699
Small-Cap Growth Fund		—		—		—
Mid-Cap Growth Fund		—		—		—
Large-Cap Growth Fund		—		—		—
U.S. Government Money Market Fund		3,944,200		—		3,944,200

142    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended December 31, 2007, was as follows:

	Ordinary		Long-Term		Return of		Total
Fund	Income		Capital Gain		Capital		Distributions
Nova Fund	$	1,161,348	$	—	$	—	$	1,161,348
Inverse S&P 500 Strategy Fund		767,870		—		—		767,870
NASDAQ-100® Fund		63,168		—		—		63,168
Inverse NASDAQ-100® Strategy Fund		906,240		—		—		906,240
S&P 500 2x Strategy Fund		2,666,050		622,608		851,687		4,140,345
NASDAQ-100® 2x Strategy Fund		186,716		—		—		186,716
Mid-Cap 1.5x Strategy Fund		1,494,103		691,701		1,839,552		4,025,356
Inverse Mid-Cap Strategy Fund		119,992		—		—		119,992
Russell 2000® 2x Strategy Fund		57,037		—		—		57,037
Russell 2000® 1.5x Strategy Fund		459,551		1,542,506		—		2,002,057
Inverse Russell 2000® Strategy Fund		382,872		—		—		382,872
Government Long Bond 1.2x Strategy Fund		1,898,770		—		—		1,898,770
Inverse Government Long Bond Strategy Fund		725,228		—		—		725,228
Europe 1.25x Strategy Fund		9,030,437		989,193		—		10,019,630
Japan 1.25x Strategy Fund		1,177,302		—		—		1,177,302
Dow 2x Strategy Fund		4,715,887		277,020		—		4,992,907
Inverse Dow 2x Strategy Fund		650,488		—		—		650,488
Small-Cap Value Fund		1,261,225		857,854		—		2,119,079
Mid-Cap Value Fund		366,943		17,776		—		384,719
Large-Cap Value Fund		3,639,001		1,733,846		—		5,372,847
Small-Cap Growth Fund		924,827		654,795		—		1,579,622
Mid-Cap Growth Fund		1,416,965		1,250,505		33,261		2,700,731
Large-Cap Growth Fund		503,128		190,616		21,547		715,291
U.S. Government Money Market Fund		10,144,753		—		—		10,144,753

The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows:

	Undistributed		Undistributed		Net Unrealized
	Ordinary		Long-Term		Appreciation/			Capital Loss
Fund	Income		Capital Gain		(Depreciation)			Carryforward
Nova Fund	$	410,874	$	—	$	(8,282,353	)	$	(82,081,970	)1
Inverse S&P500 Strategy Fund		—		—		54,078			(6,957,064	)1
NASDAQ-100® Fund		—		—		(18,890,756	)		(300,562,398	)1
Inverse NASDAQ-100® Strategy Fund		16,229		—		15,823			(8,975,375	)1
S&P500 2x Strategy Fund		158,278		—		(4,578,128	)		(25,426,896	)1
NASDAQ-100® 2x Strategy Fund		—		—		(2,193,308	)		(36,475,555	)1
Mid-Cap 1.5x Strategy Fund		13,700		—		(2,870,819	)		(8,453,446	)1
Inverse Mid-Cap Strategy Fund		—		—		(75,791	)		(853,591	)1
Russell 2000® 2x Strategy Fund		2,452		—		(515,294	)		(4,151,768	)1
Russell 2000® 1.5x Strategy Fund		7,792		—		(2,322,524	)		(8,927,085	)1
Inverse Russell 2000® Strategy Fund		—		—		(165,120	)		(5,534,622	)1
Government Long Bond 1.2x Strategy Fund		9,888,947		4,926,154		7,878,988			—
Inverse Government Long Bond Strategy Fund		—		—		—			(15,079,394	)1
Europe 1.25x Strategy Fund		517,214		—		(3,753,937	)		(14,473,305	)
Japan 1.25x Strategy Fund		31,969		—		—			(8,652,666	)1
Dow 2x Strategy Fund		—		—		(3,084,408	)		(21,135,557	)1
Inverse Dow 2x Strategy Fund		—		—		17,210			—
Small-Cap Value Fund		198,801		—		(6,867,327	)		(1,932,476	)1
Mid-Cap Value Fund		266,722		—		(4,918,193	)		(1,798,278	)1
Large-Cap Value Fund		438,407		—		(5,729,114	)		(4,082,812	)1
Small-Cap Growth Fund		—		—		(5,377,191	)		(1,085,308	)1
Mid-Cap Growth Fund		—		—		(4,241,920	)		(3,436,260	)1
Large-Cap Growth Fund		—		—		(7,160,616	)		(992,717	)1
U.S. Government Money Market Fund		83,527		—		—			—

Capital Loss Carryforward amounts may be limited due to Treasury Regulations.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    143

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	2009			2010			2011			2012			2013			2014			2015			2016			Carryforward
Nova Fund	$	(40,390,472	)	$	(16,542,228	)	$	—		$	—		$	—		$	—		$	—		$	(25,149,270	)	$	(82,081,970	)
Inverse S&P 500 Strategy Fund		—			—			—			—			(180,775	)		(5,114,923	)		(1,661,366	)		—			(6,957,064	)
NASDAQ-100® Fund		(180,736,125	)		(98,591,246	)		(10,118,266	)		(305,933	)		—			—			—			(10,810,828	)		(300,562,398	)
Inverse NASDAQ-100® Strategy Fund		—			—			—			—			(2,149,850	)		(1,494,971	)		(5,330,554	)		—			(8,975,375	)
S&P 500 2x Strategy Fund		—			—			—			—			—			—			—			(25,426,896	)		(25,426,896	)
NASDAQ-100® 2x Strategy Fund		—			—			—			—			(798,838	)		—			(2,972,623	)		(32,704,094	)		(36,475,555	)
Mid-Cap 1.5x Strategy Fund		—			—			—			—			—			—			(157,985	)		(8,295,461	)		(8,453,446	)
Inverse Mid-Cap Strategy Fund		—			—			—			—			—			(513,021	)		(340,570	)		—			(853,591	)
Russell 2000® 2x Strategy Fund		—			—			—			—			—			—			(683,805	)		(3,467,963	)		(4,151,768	)
Russell 2000® 1.5x Strategy Fund		—			—			—			—			—			—			(848,738	)		(8,078,347	)		(8,927,085	)
Inverse Russell 2000® Strategy Fund		—			—			—			(295,607	)		(955,067	)		(3,912,378	)		(371,570	)		—			(5,534,622	)
Inverse Government Long Bond Strategy Fund		—			—			—			(5,005,075	)		(2,319,251	)		(986,005	)		(1,974,960	)		(4,794,103	)		(15,079,394	)
Europe 1.25x Strategy Fund		—			—			—			—			—			—			—			(14,473,305	)		(14,473,305	)
Japan 1.25x Strategy Fund		—			—			—			—			—			(429,142	)		(2,697,940	)		(5,525,584	)		(8,652,666	)
Dow 2x Strategy Fund		—			—			—			—			—			—			—			(21,135,557	)		(21,135,557	)
Small-Cap Value Fund		—			—			—			—			—			—			(494,096	)		(1,438,380	)		(1,932,476	)
Mid-Cap Value Fund		—			—			—			—			—			—			—			(1,798,278	)		(1,798,278	)
Large-Cap Value Fund		—			—			—			—			—			—			—			(4,082,812	)		(4,082,812	)
Small-Cap Growth Fund		—			—			—			—			—			—			—			(1,085,308	)		(1,085,308	)
Mid-Cap Growth Fund		—			—			—			—			—			—			—			(3,436,260	)		(3,436,260	)
Large-Cap Growth Fund		—			—			—			—			—			—			—			(992,717	)		(992,717	)

At December 31, 2008, 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	$	44,166,870	$	149,270	$	(8,667,560	)	$	(8,518,290	)
Inverse S&P 500 Strategy Fund		18,368,681		—		—			—
NASDAQ-100®Fund		50,774,962		—		(18,904,751	)		(18,904,751	)
Inverse NASDAQ-100®Strategy Fund		12,733,367		—		—			—
S&P 500 2x Strategy Fund		27,202,377		—		(4,955,764	)		(4,955,764	)
NASDAQ-100®2x Strategy Fund		22,549,755		—		(2,269,847	)		(2,269,847	)
Mid-Cap 1.5x Strategy Fund		13,648,906		155,402		(3,186,129	)		(3,030,727	)
Inverse Mid-Cap Strategy Fund		4,428,644		—		—			—
Russell 2000®2x Strategy Fund		3,375,711		—		(783,482	)		(783,482	)
Russell 2000®1.5x Strategy Fund		15,342,091		—		(2,666,404	)		(2,666,404	)
Inverse Russell 2000®Strategy Fund		5,654,112		—		—			—
Government Long Bond 1.2x Strategy Fund		60,403,705		7,878,988		—			7,878,988
Inverse Government Long Bond Strategy Fund		10,487,223		—		—			—
Europe 1.25x Strategy Fund		16,052,047		—		(3,951,646	)		(3,951,646	)
Japan 1.25x Strategy Fund		10,280,272		—		—			—
Dow 2x Strategy Fund		29,777,797		676,531		(3,743,663	)		(3,067,132	)
Inverse Dow 2x Strategy Fund		8,743,354		—		—			—
Small-Cap Value Fund		17,422,335		—		(6,867,327	)		(6,867,327	)
Mid-Cap Value Fund		12,455,716		—		(4,918,193	)		(4,918,193	)
Large-Cap Value Fund		15,198,749		—		(5,729,114	)		(5,729,114	)
Small-Cap Growth Fund		19,086,398		—		(5,377,191	)		(5,377,191	)
Mid-Cap Growth Fund		15,864,303		—		(4,241,920	)		(4,241,920	)
Large-Cap Growth Fund		20,387,656		—		(7,160,616	)		(7,160,616	)
U.S. Government Money Market Fund		373,807,711		—		—			—

144    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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, 2008, 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, 2009:

Fund	Capital
Inverse Mid-Cap Strategy Fund	$	(509,821	)
Russell 2000® 2x Strategy Fund		(328,309	)
Inverse Russell 2000® Fund		(380,497	)
Dow 2x Strategy Fund		(1,852,237	)
Inverse Dow 2x Strategy Fund		(617,591	)
Small-Cap Value Fund		(4,476,804	)
Mid-Cap Value Fund		(3,796,482	)
Large-Cap Value Fund		(3,979,397	)
Small-Cap Growth Fund		(2,707,724	)
Mid-Cap Growth Fund		(3,454,103	)
Large-Cap Growth Fund		(3,539,726	)

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, 2008, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.03% due 01/02/09	$	49,841,465	$	49,841,465	$	49,841,548
Mizuho Financial Group, Inc.	0.02% due 01/02/09		45,000,000		45,000,000		45,000,050
Morgan Stanley	0.01% due 01/02/09		45,000,000		45,000,000		45,000,025
UBS Financial Services	0.01% due 01/02/09		45,000,000		45,000,000		45,000,025
				$	184,841,465	$	184,841,648

As of December 31, 2008, the collateral for the repurchase agreements was as follows:

Security Type	Maturity Dates		Range of Rates		Par Value		Market Value
U.S. Treasury Notes		08/31/09 – 08/15/18		1.500% – 5.125%	$	69,022,000	$	76,858,108
U.S. Treasury Bill		05/07/09		—		45,906,500		45,900,073
U.S. TIP Bond		01/15/26		2.000%		43,599,000		45,900,318
U.S. TIP Note		01/15/10		4.250%		15,365,000		19,837,560
U.S. Treasury Bond		02/15/19 – 05/15/30		6.250% – 8.875%		31,000		47,724
							$	188,543,783

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.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    145

NOTES TO FINANCIAL STATEMENTS (continued)

6. Fair Value Measurement

Effective January 1, 2008, the Funds adopted Statement of Financial Accounting Standard No. 157 (“FAS 157”), Fair Value Measurement, which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications.

Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels:

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, 2008:

	Level 1		Level 1			Level 2		Level 2			Level 3		Level 3
	Investments		Other Financial			Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	In Securities		Instruments		*	Total
Assets
Nova Fund	$	35,648,580	$	442,503		$	—	$	235,937		$	—	$	—		$	36,327,020
Inverse S&P 500 Strategy Fund		8,368,873		—			9,999,807		54,078			—		—			18,422,758
NASDAQ-100® Fund		31,870,211		25,215			—		13,995			—		—			31,909,421
Inverse NASDAQ-100® Strategy Fund		11,733,400		60,386			999,967		15,823			—		—			12,809,576
S&P 500 2x Strategy Fund		22,246,613		529,828			—		377,636			—		—			23,154,077
NASDAQ-100® 2x Strategy Fund		20,279,908		198,498			—		76,539			—		—			20,554,945
Mid-Cap 1.5x Strategy Fund		10,618,179		352,821			—		159,908			—		—			11,130,908
Inverse Mid-Cap Strategy Fund		3,428,660		—			999,984		—			—		—			4,428,644
Russell 2000® 2x Strategy Fund		2,592,229		—			—		268,188			—		—			2,860,417
Russell 2000® 1.5x Strategy Fund		12,675,687		292,469			—		343,880			—		—			13,312,036
Inverse Russell 2000® Strategy Fund		4,154,137		—			1,499,975		—			—		—			5,654,112
Government Long Bond 1.2x Strategy Fund		50,222,999		3,790,546			18,059,694		—			—		—			72,073,239
Inverse Government Long Bond Strategy Fund		6,987,293		173,590			3,499,930		—			—		—			10,660,813
Europe 1.25x Strategy Fund		12,100,401		—			—		488,671			—		—			12,589,072
Japan 1.25x Strategy Fund		10,280,272		—			—		979,277			—		—			11,259,549
Dow 2x Strategy Fund		26,710,665		777,950			—		—			—		—			27,488,615
Inverse Dow 2x Strategy Fund		5,743,422		—			2,999,932		17,210			—		—			8,760,564
Small-Cap Value Fund		10,555,008		—			—		—			—		—			10,555,008
Mid-Cap Value Fund		7,537,523		—			—		—			—		—			7,537,523
Large-Cap Value Fund		9,469,635		—			—		—			—		—			9,469,635
Small-Cap Growth Fund		13,709,207		—			—		—			—		—			13,709,207
Mid-Cap Growth Fund		11,622,383		—			—		—			—		—			11,622,383
Large-Cap Growth Fund		13,227,040		—			—		—			—		—			13,227,040
U.S. Government Money Market Fund		—		—			373,807,711		—			—		—			373,807,711

146    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

	Level 1		Level 1			Level 2		Level 2			Level 3		Level 3
	Investments		Other Financial			Investments		Other Financial			Investments		Other Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	In Securities		Instruments		*	Total
Liabilities
Nova Fund	$	—	$	—		$	—	$	—		$	—	$	—		$	—
Inverse S&P 500 Strategy Fund		—		69,133			—		—			—		—			69,133
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		—		104,331			—		75,791			—		—			180,122
Russell 2000® 2x Strategy Fund		—		809			—		—			—		—			809
Russell 2000® 1.5x Strategy Fund		—		—			—		—			—		—			—
Inverse Russell 2000® Strategy Fund		—		102,397			—		165,120			—		—			267,517
Government Long Bond 1.2x Strategy Fund		—		—			—		—			—		—			—
Inverse Government Long Bond Strategy Fund		—		—			—		—			—		—			—
Europe 1.25x Strategy Fund		—		—			—		—			—		—			—
Japan 1.25x Strategy Fund		—		—			—		—			—		—			—
Dow 2x Strategy Fund		—		—			—		17,276			—		—			17,276
Inverse Dow 2x Strategy Fund		—		276,182			—		—			—		—			276,182
Small-Cap Value Fund		—		—			—		—			—		—			—
Mid-Cap Value Fund		—		—			—		—			—		—			—
Large-Cap Value Fund		—		—			—		—			—		—			—
Small-Cap Growth Fund		—		—			—		—			—		—			—
Mid-Cap Growth Fund		—		—			—		—			—		—			—
Large-Cap Growth Fund		—		—			—		—			—		—			—
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.

7. Securities Transactions

During the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

							Inverse
			Inverse				NASDAQ-100®		S&P 500 2x		NASDAQ-100®		Mid-Cap 1.5x		Inverse
			S&P 500		NASDAQ-100®		Strategy		Strategy		2x Strategy		Strategy		Mid-Cap
	Nova Fund		Strategy Fund		Fund		Fund		Fund		Fund		Fund		Strategy Fund
Purchases	$	81,738,129	$	—	$	47,665,012	$	—	$	70,311,329	$	40,202,254	$	22,197,550	$	—
Sales	$	100,525,081	$	—	$	59,929,511	$	—	$	56,189,052	$	49,940,788	$	34,140,259	$	—
							Government		Inverse
	Russell 2000®		Russell 2000®		Inverse		Long Bond		Government		Europe 1.25x		Japan 1.25x		Dow 2x
	2x Strategy		1.5x Strategy		Russell 2000®		1.2x Strategy		Long Bond		Strategy		Strategy		Strategy
	Fund		Fund		Strategy Fund		Fund		Strategy Fund		Fund		Fund		Fund
Purchases	$	7,437,327	$	47,010,319	$	—	$	588,158,275	$	228,582,936	$	29,323,965	$	—	$	17,108,269
Sales	$	8,927,756	$	47,797,767	$	—	$	608,698,414	$	241,738,517	$	62,608,653	$	—	$	19,925,715
															U.S.
	Inverse Dow 2x								Small-Cap		Mid-Cap		Large-Cap		Government
	Strategy		Small-Cap		Mid-Cap		Large-Cap		Growth		Growth		Growth		Money Market
	Fund		Value Fund		Value Fund		Value Fund		Fund		Fund		Fund		Fund
Purchases	$	—	$	59,740,441	$	33,759,003	$	69,845,014	$	72,212,439	$	89,604,575	$	83,416,665	$	—
Sales	$	—	$	48,439,604	$	33,935,600	$	73,609,604	$	64,725,377	$	94,458,996	$	94,815,273	$	—

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    147

NOTES TO FINANCIAL STATEMENTS (continued)

8. Share Transactions

The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:

					Purchased through										Net Shares
	Shares Purchased				Dividend Reinvestment				Shares Redeemed						Purchased (Redeemed)
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	December 31,		December 31,		December 31,		December 31,		December 31,			December 31,			December 31,			December 31,
	2008		2007		2008		2007		2008			2007			2008			2007
Nova Fund†		2,626,742		2,612,058		5,094		11,408		(2,677,574	)		(3,139,674	)		(45,739	)		(516,208	)
Inverse S&P 500 Strategy Fund		21,518,902		19,376,299		2,739		18,344		(21,624,298	)		(23,220,677	)		(102,657	)		(3,826,034	)
NASDAQ-100® Fund		15,541,893		20,423,064		7,546		3,482		(16,959,483	)		(20,609,419	)		(1,410,044	)		(182,873	)
Inverse NASDAQ-100® Strategy Fund		17,935,192		64,675,490		2,502		53,434		(18,256,560	)		(65,135,299	)		(318,866	)		(406,375	)
S&P 500 2x Strategy Fund†		3,347,245		914,913		—		21,135		(3,106,068	)		(920,239	)		241,177			15,809
NASDAQ-100® 2x Strategy Fund		20,970,855		39,415,461		5,285		6,199		(20,300,480	)		(38,516,138	)		675,660			905,522
Mid-Cap 1.5x Strategy Fund		5,902,564		14,637,784		—		182,225		(5,846,105	)		(15,146,674	)		56,459			(326,665	)
Inverse Mid-Cap Strategy Fund		1,570,980		3,053,209		585		3,463		(1,555,212	)		(3,131,417	)		16,353			(74,745	)
Russell 2000® 2x Strategy Fund†		434,384		202,147		903		254		(416,502	)		(192,395	)		18,786			10,006
Russell 2000® 1.5x Strategy Fund		8,537,378		8,677,892		1,695		58,488		(8,335,124	)		(9,873,791	)		203,949			(1,137,411	)
Inverse Russell 2000® Strategy Fund		6,499,337		6,055,699		1,622		11,037		(6,651,630	)		(6,087,515	)		(150,671	)		(20,779	)
Government Long Bond 1.2x Strategy Fund		38,451,799		40,890,318		129,093		166,118		(39,162,852	)		(41,149,330	)		(581,960	)		(92,894	)
Inverse Government Long Bond Strategy Fund		17,094,570		8,139,115		3,211		37,001		(17,215,791	)		(8,633,879	)		(118,010	)		(457,763	)
Europe 1.25x Strategy Fund		3,814,283		6,760,829		54,998		325,736		(5,644,181	)		(7,343,936	)		(1,774,900	)		(257,371	)
Japan 1.25x Strategy Fund		4,289,085		5,089,542		5,839		48,429		(4,110,880	)		(5,577,430	)		184,044			(439,459	)
Dow 2x Strategy Fund†		2,761,219		1,432,060		8,738		37,739		(2,365,341	)		(1,458,296	)		404,616			11,503
Inverse Dow 2x Strategy Fund		10,433,543		4,904,068		108,279		23,215		(10,625,926	)		(5,026,052	)		(84,104	)		(98,769	)
Small-Cap Value Fund†		807,806		350,807		2,311		23,033		(713,852	)		(505,934	)		96,265			(132,093	)
Mid-Cap Value Fund†		428,519		1,014,913		39,173		3,619		(446,449	)		(1,117,448	)		21,243			(98,915	)
Large-Cap Value Fund†		810,076		1,143,995		62,637		41,505		(861,316	)		(1,514,351	)		11,396			(328,851	)
Small-Cap Growth Fund		3,612,727		3,790,354		—		57,233		(3,300,132	)		(4,167,256	)		312,595			(319,669	)
Mid-Cap Growth Fund		3,431,308		5,781,889		—		90,205		(3,689,854	)		(5,519,616	)		(258,546	)		352,478
Large-Cap Growth Fund		4,488,552		5,518,742		—		26,086		(5,012,226	)		(5,102,555	)		(523,674	)		442,273
U.S. Government Money Market Fund		1,084,838,243		1,479,694,977		3,944,200		10,144,753		(1,005,259,658	)		(1,420,642,030	)		83,522,785			69,197,700

†	As described in Note 13, per share amounts for periods ended December 31, 2007 — December 31, 2008 have been restated to reflect a:
	1:5 reverse stock split effective April 20, 2009 — Dow 2x Strategy Fund, Small-Cap Value Fund, Mid-Cap Value Fund and Large-Cap Value Fund.
	1:10 reverse stock split effective April 20, 2009 — Nova Fund, S&P 500 2x Strategy Fund and Russell 2000® 2x Strategy Fund.

148    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (concluded)

9. Portfolio Securities Loaned

During the year ended December 31, 2008, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the statement of operations is shown net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of December 31, 2008, the Funds had ceased participation in securities lending.

10. Continued Participation in the U.S. Treasury’s Temporary Guarantee Program for Money Market Funds

U.S. Government Money Market Fund (the “Fund”) has filed a Guarantee Agreement with the United States Department of the Treasury (the “Treasury”) to participate in the Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”).

Under the Program, the Treasury will guarantee the share price of shares of the Fund held by shareholders as of September 19, 2008 at $1.00 per share if the Fund’s net asset value per share falls below $0.995 (a “Guarantee Event”) and the Fund liquidates. Recovery under the Program is subject to certain conditions and limitations, including the following:

• For shareholders of a Fund, the Program provides a guarantee for the lesser of (a) the number of Fund shares owned by the shareholder as of the close of business on September 19, 2008, or (b) the number of Fund shares owned by the shareholder on the date of a Guarantee Event.

• The total amount of coverage available for all participants in the Program is limited to the amount of funds available under the Federal Exchange Stabilization Fund at the time of a Guarantee Event (currently approximately $50 billion).

• In order to recover, a Guarantee Event must occur during the term of the Program.

Fund shares acquired by investors after September 19, 2008 that increase the number of Fund shares the investor held as of the close of business on September 19, 2008 are not eligible for protection under the Program. In addition, Fund shares acquired by investors who did not hold Fund shares as of the close of business on September 19, 2008 are not eligible for protection under the Program.

The Program will remain in effect until April 30, 2009, after which the Secretary of the Treasury will review the need for, and terms of, the Program. Participation in the initial three months of the Program required a payment to the Treasury in the amount of .01% of the value of all shares outstanding as of September 19, 2008. Continued participation in the Program required an additional payment to the Treasury in the amount of .015% of the value of all shares outstanding as of September 19, 2008, which were both paid by the Fund. The Secretary may extend the Program through the close of business on September 18, 2009. If the Program is extended, the Fund will consider whether to continue to participate and pay any additional fees.

11. Change in Independent Registered Public Accounting Firm

The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).

The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.

12. New Accounting Pronouncements

In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how entities use derivatives, how they are accounted for and how they affect the financial position and operations of that entity. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management is evaluating the impact of FAS 161 on its current disclosures.

13. Subsequent Event- Reverse Share Splits

Effective April 20, 2009, the Nova Fund, S&P 500 2x Strategy Fund, and Russell 2000 2x Strategy Fund underwent a 1-for-10 reverse share split and the Dow 2x Strategy Fund, Small-Cap Value Fund, Mid-Cap Value Fund and Large-Cap Value Fund underwent a 1-for-5 reverse share split. The effect of each transaction was to divide the number of outstanding shares of the Fund by ten or five, as applicable, resulting in a corresponding increase in the net asset value per share. The shares outstanding and net asset value per share on the statements of assets and liabilities as of December 31, 2008, the share transactions presented in Note 8 for each of the two years in the period then ended, and the per share data in the financial highlights for each of the years or periods in the five-year period then ended have been given retroactive effect to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    149

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 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, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, Europe 1.25x Strategy Fund, Japan 1.25x Strategy Fund, Dow 2x Strategy Fund, Inverse Dow 2x Strategy Fund, Small-Cap Value Fund, Mid-Cap Value Fund, Large-Cap Value Fund, Small-Cap Growth Fund, Mid-Cap Growth Fund, Large-Cap Growth Fund and U.S Government Money Market Fund (twenty-four of the series constituting the Rydex Variable Trust) (the “Funds”), including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year 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 statements of changes in net assets for the year ended December 31, 2007 and 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 statements and 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, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, 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 each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 26, 2009, except for Note 13, as to which the date is April 28, 2009

150    |    THE RYDEX 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		100.00	%
NASDAQ-100® Fund		100.00	%
NASDAQ-100® 2x Strategy Fund		65.15	%
Russell 2000® 2x Strategy Fund		56.52	%
Russell 2000® 1.5x Strategy Fund		30.08	%
Dow 2x Strategy Fund		72.50	%
Small-Cap Value Fund		100.00	%
Mid-Cap Value Fund		100.00	%
Large-Cap Value Fund		34.75	%

The Funds’ distributions to shareholders included:

	Europe 1.25x		Inverse Dow 2x		Mid-Cap		Large-Cap
	Strategy		Strategy		Value		Value
	Fund		Fund		Fund		Fund
From long-term capital gains, subject to the 15% rate gains category:	$	254,418	$	3,237,015	$	1,456,316	$	2,551,427

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 1-800-820-0888. 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 1-800-820-0888. 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 1-800-820-0888.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    151

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, 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 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

TRUSTEES AND OFFICERS

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Carl G. Verboncoeur*	Rydex Series Funds – 2004	160
Trustee, President (1952)	Rydex Variable Trust – 2004
	Rydex Dynamic Funds – 2004
	Rydex ETF Trust – 2004
Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to present) Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present)
Michael P. Byrum*	Rydex Series Funds – 2005	160
Trustee, Vice President	Rydex Variable Trust – 2005
(1970)	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005
Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); 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); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)
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	151
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	151
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	151
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	151
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)

152    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Thomas F. Lydon, Jr.	Rydex Series Funds – 2005	151
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	151
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	151
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Nick Bonos* Vice President and Treasurer (1963)	Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present); 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 (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	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, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, 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.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    153

9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVABENF-ANN-2-1208x1209

DECEMBER 31, 2008

RYDEX VARIABLE TRUST ANNUAL REPORT
SECTOR FUNDS

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

UTILITIES FUND

GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888.

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, Inc.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS   2

ABOUT SHAREHOLDERS’ FUND EXPENSES   3

PERFORMANCE REPORTS AND FUND PROFILES   5

SCHEDULES OF INVESTMENTS   22

STATEMENTS OF ASSETS AND LIABILITIES   42

STATEMENTS OF OPERATIONS   46

STATEMENTS OF CHANGES IN NET ASSETS   50

FINANCIAL HIGHLIGHTS   56

NOTES TO FINANCIAL STATEMENTS   59

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   67

OTHER INFORMATION   68

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   69

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.

Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.

Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.

It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases); home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.

Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500^® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.

Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP.

The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.

In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.

We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

2    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

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, 2008 and ending December 31, 2008.

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.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

				Beginning		Ending		Expenses
	Expense			Account Value		Account Value		Paid During
	Ratio		†	June 30, 2008		December 31, 2008		Period		*
Table 1. Based on actual Fund return
Banking Fund		1.66%			$ 1,000.00		$ 839.00		$7.67
Basic Materials Fund		1.64%			1,000.00		515.90		6.25
Biotechnology Fund		1.65%			1,000.00		925.10		7.98
Consumer Products Fund		1.65%			1,000.00		870.20		7.76
Electronics Fund		1.65%			1,000.00		575.00		6.53
Energy Fund		1.64%			1,000.00		446.80		5.96
Energy Services Fund		1.64%			1,000.00		337.20		5.51
Financial Services Fund		1.64%			1,000.00		681.60		6.93
Health Care Fund		1.65%			1,000.00		837.10		7.62
Internet Fund		1.64%			1,000.00		640.60		6.76
Leisure Fund		1.69%			1,000.00		643.00		6.98
Precious Metals Fund		1.54%			1,000.00		585.60		6.14
Retailing Fund		1.65%			1,000.00		761.00		7.30
Technology Fund		1.65%			1,000.00		614.70		6.70
Telecommunications Fund		1.65%			1,000.00		651.30		6.85
Transportation Fund		1.64%			1,000.00		778.30		7.33
Utilities Fund		1.65%			1,000.00		732.50		7.19
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund		1.66%			1,000.00		1,016.79		8.42
Basic Materials Fund		1.64%			1,000.00		1,016.89		8.31
Biotechnology Fund		1.65%			1,000.00		1,016.84		8.36
Consumer Products Fund		1.65%			1,000.00		1,016.84		8.36
Electronics Fund		1.65%			1,000.00		1,016.84		8.36
Energy Fund		1.64%			1,000.00		1,016.89		8.31
Energy Services Fund		1.64%			1,000.00		1,016.89		8.31
Financial Services Fund		1.64%			1,000.00		1,016.89		8.31
Health Care Fund		1.65%			1,000.00		1,016.84		8.36
Internet Fund		1.64%			1,000.00		1,016.89		8.31
Leisure Fund		1.69%			1,000.00		1,016.64		8.57
Precious Metals Fund		1.54%			1,000.00		1,017.39		7.81
Retailing Fund		1.65%			1,000.00		1,016.84		8.36
Technology Fund		1.65%			1,000.00		1,016.84		8.36
Telecommunications Fund		1.65%			1,000.00		1,016.84		8.36
Transportation Fund		1.64%			1,000.00		1,016.89		8.31
Utilities Fund		1.65%			1,000.00		1,016.84		8.36

*	Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies.
†	Annualized

4    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)

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.

Inception: May 2, 2001

The subprime debacle and subsequent collapse of the U.S. housing market decimated the banking sector this year. Rydex Banking Fund fell 41.16% compared to the S&P 500 Index’s -37.00% return. Every industry in the banking sector felt the effects of the impending global recession in 2008. Thrifts and mortgage finance suffered the most, falling more than -58% each. While several banks simply failed or were taken over, there was one industry stand-out: Unionbancal Corporation, which ended the year up 54.7%. The worst-performing stock in this industry was clearly Washington Mutual Inc., which lost 98.9% before being taken over by the Office of Thrift Supervision.

Cumulative Fund Performance:
May 2, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
BANKING FUND		-41.16	%		-11.84	%		-4.51	%
S&P 500 INDEX		-37.00	%		-2.19	%		-2.55	%
S&P 500 FINANCIALS INDEX		-55.27	%		-12.48	%		-7.52	%

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)
Wells Fargo & Co.	4.9	%
JPMorgan Chase & Co.	4.3	%
U.S. Bancorp	4.1	%
HSBC Holdings PLC — SP ADR	3.6	%
UBS AG — SP ADR	3.4	%
Credit Suisse Group AG — SP ADR	3.1	%
Bank of America Corp.	2.9	%
PNC Financial Services Group, Inc.	2.5	%
BB&T Corp.	2.4	%
Barclays PLC — SP ADR	2.3	%
Top Ten Total	33.5	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    5

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: May 2, 2001

Rydex Basic Materials Fund turned in a -45.40% return for the one-year period ended December 31, 2008, compared to the S&P 500 Index’s -37.00% return. The basic materials industry was the second-worst performing market sector, with most of its industries ending the year in double-digit losses. The top-performing industries were building products (down 8.4%) and containers & packaging (down 28.6%) with Millennium Pharmaceuticals delivering a positive return of 66.9% for the year. On the downside, the worst performer in this category was the beleaguered paper & forest products, which lost 67.1% in

Cumulative Fund Performance:
May 2, 2001 – December 31, 2008

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

large part due to the multinational mining group Rio Tinto, which was down 78.5%.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
BASIC MATERIALS FUND		-45.40	%		2.38	%		2.94	%
S&P 500 INDEX		-37.00	%		-2.19	%		-2.55	%
S&P 500 MATERIALS INDEX		-45.66	%		-1.25	%		2.36	%

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)
BHP Billiton Ltd. — SP ADR	4.3	%
Barrick Gold Corp.	3.2	%
Companhia Vale do Rio Doce — SP ADR	2.9	%
Monsanto Co.	2.8	%
Goldcorp, Inc.	2.7	%
ArcelorMittal	2.5	%
Newmont Mining Corp.	2.4	%
Syngenta AG — SP ADR	2.3	%
Nucor Corp.	2.2	%
Potash Corporation of Saskatchewan	2.1	%
Top Ten Total	27.4	%

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

6    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: May 2, 2001

Rydex Biotechnology Fund returned -11.78% compared to the S&P 500 Index’s -37.00% return. The industry itself consists of two subsets: biotechnology and life sciences tools & services. While both were down, they performed significantly better than the broader markets.

The biotechnology industry was down 9.6% while life sciences tools & services lost only 4.0%.

Cumulative Fund Performance:
May 2, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
BIOTECHNOLOGY FUND		-11.78	%		-0.07	%		-3.46	%
S&P 500 INDEX		-37.00	%		-2.19	%		-2.55	%
S&P 500 HEALTH CARE INDEX		-22.81	%		-0.73	%		-1.21	%

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)
Genentech, Inc.	12.8	%
Amgen, Inc.	11.1	%
Gilead Sciences, Inc.	10.2	%
Celgene Corp.	6.6	%
Biogen Idec, Inc.	4.3	%
Genzyme Corp.	4.3	%
Cephalon, Inc.	3.3	%
Vertex Pharmaceuticals, Inc.	3.0	%
Myriad Genetics, Inc.	2.5	%
Alexion Pharmaceuticals, Inc.	2.2	%
Top Ten Total	60.3	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    7

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

CONSUMER PRODUCTS FUND

OBJECTIVE: Seeks capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally.

Inception: May 29, 2001

Rydex Consumer Products Fund returned -23.39% compared to the S&P 500 Index’s -37.00%. While the consumer products sector fared better than the broader markets in 2008, it did not provide investors with much shelter from the all-encompassing financial storm. All of its industry returns were in negative territory for the year, with the best-performing group remaining household products, which lost 16.0%. WM Wrigley was up 38.6% for 2008. The worst-performing industry remained personal products (down 34.9%), with Supervalu Inc.—the leading U.S.-based grocery distributor—down 59.8%.

Cumulative Fund Performance:
May 29, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/29/01)
CONSUMER PRODUCTS FUND		-23.39	%		2.43	%		3.95	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.59	%
S&P500 CONSUMER STAPLES INDEX		-15.44	%		4.42	%		4.10	%

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.	7.8	%
Coca-Cola Co.	6.1	%
Philip Morris International, Inc.	5.5	%
PepsiCo, Inc.	5.4	%
Unilever NV	3.7	%
Kraft Foods, Inc.	3.7	%
Colgate-Palmolive Co.	3.6	%
Diageo PLC — SP ADR	3.3	%
Archer-Daniels-Midland Co.	3.2	%
Altria Group, Inc.	2.9	%
Top Ten Total	45.2	%

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

8    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: August 3, 2001

Rydex Electronics Fund returned -50.11%, as compared to the S&P 500 Index’s return of -37.00% for the same period. The electronics sector consists primarily of one industry group—semiconductors & semiconductor equipment—which lost 48.8% this year. There were a wide range of returns amongst this sector’s constituents. The best performing-stock, fuel cell maker Entegris Inc lost 4.8% while the worst performing stock, Infineon Technologies, ended 2008 down more than 88.0%.

Cumulative Fund Performance:
August 3, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(08/03/01)
ELECTRONICS FUND		-50.11	%		-16.58	%		-15.25	%
S&P500 INDEX		-37.00	%		2.19	%		-2.12	%
S&P500 INFORMATION TECHNOLOGY INDEX		-43.14	%		-5.77	%		-6.14	%

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.	10.8	%
Taiwan Semiconductor Manufacturing
Company Ltd. — SP ADR	7.7	%
Texas Instruments, Inc.	5.1	%
Applied Materials, Inc.	4.1	%
ASML Holding NV	3.9	%
Broadcom Corp. — Class A	3.6	%
Altera Corp.	2.8	%
Analog Devices, Inc.	2.7	%
Nvidia Corp.	2.7	%
STMicroelectronics NV — SP ADR	2.6	%
Top Ten Total	46.0	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    9

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: May 29, 2001

Rydex Energy Fund returned -46.03% during a tumultuous year in which oil prices soared to new highs of more than $145 per barrel early in the year, only to come crashing down by year-end. In fact, the oil industry lost nearly two-thirds of its value from its historic summer highs. This plummet in oil prices negatively impacted the entire energy sector, which consists of two industry groups—energy equipment & services (down 57.88% for the year) and oil, gas & consumable fuels (which lost 40.9%). The sector wasn’t alone—the broad-market S&P 500 Index lost 37.00% for the one-year period.

Despite the doom and gloom in this tumultuous sector, a few stocks managed to end 2008 in positive territory.

Cumulative Fund Performance:
May 29, 2001 – December 31, 2008

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

The best-performing stock was Concho Resources Inc., which closed the year at a respectable 14.7%. The worst-performing stock was Smith International Inc., which ended the year down 68.7%.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/29/01)
ENERGY FUND		-46.03	%		8.08	%		3.77	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.59	%
S&P500 ENERGY INDEX		-34.86	%		13.43	%		8.21	%

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.	9.1	%
Chevron Corp.	5.5	%
BP PLC — SP ADR	5.2	%
Royal Dutch Shell PLC — SP ADR	4.2	%
ConocoPhillips	3.6	%
Occidental Petroleum Corp.	3.2	%
Petroleo Brasileiro SA	2.9	%
Schlumberger Ltd.	2.4	%
Devon Energy Corp.	2.2	%
Apache Corp.	2.1	%
Top Ten Total	40.4	%

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

10    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: May 2, 2001

Rydex Energy Services Fund returned -57.60% for the one-year period ending December 31, 2008 versus the S&P 500 Index’s return of -37.00%. The industry holdings in this fund are broader and include more smaller-cap names than its counterparts held in Rydex Energy Fund.

It was a tumultuous year for the energy services industry. Oil prices soared to unprecedented highs of more than $145 per barrel early in the year, only to come crashing down by year-end. By the time 2008 came to a close, the oil industry had lost nearly two-thirds of its value from its summer highs. As can be expected, the fall in oil prices negatively impacted the holdings in Rydex Energy Services

Cumulative Fund Performance:
May 2, 2001 – December 31, 2008

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

Fund, with only five stocks returning positive gains for the year. The best-performing stock was WH Energy Services Inc., which was up 58.6%. The worst-performing stock was Smith International Inc., which ended the year down 68.7%.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
ENERGY SERVICES FUND		-57.60	%		5.05	%		-1.87	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.55	%
S&P500 ENERGY INDEX		-34.86	%		13.43	%		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 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.	9.6	%
Halliburton Co.	6.2	%
Tenaris SA — SP ADR	5.1	%
Transocean Ltd.	4.9	%
National-Oilwell Varco, Inc.	4.9	%
Baker Hughes, Inc.	4.7	%
Diamond Offshore Drilling, Inc.	4.1	%
Weatherford International Ltd.	3.7	%
Noble Corp.	3.4	%
Cameron International Corp.	3.0	%
Top Ten Total	49.6	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    11

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

FINANCIAL SERVICES FUND

OBJECTIVE: Seeks capital appreciation by investing in companies involved in the financial services sector.

Inception: July 20, 2001

The subprime debacle and collapse of the U.S. housing market decimated the financial services sector this year. Rydex Financial Services Fund returned -48.04% compared to the S&P 500 Index’s return of -37.00%. The collapse of the mortgage market and spread of financial contagion to the broader stock market hit the sector hard. Financial stocks as a group lost more than half their value. In these historic times the Federal Reserve intervened, bailing out certain firms. The Federal Reserve was also granted unprecedented authority and resources in order to restore normalcy to the financial markets.

None of the financial sector’s industries escaped the fallout from the credit crisis. The best-performing industry, real estate investment trusts, lost 37.2%. The best-performing stock was Unionbancal Corp., which ended the year up 54.7%. The worst-performing

Cumulative Fund Performance:
July 20, 2001 – December 31, 2008

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

industries lost more than 60% of their value, including thrifts & mortgage finance and real estate & development firms. Leading the pack was Lehman Brothers Holdings, which filed for bankruptcy in September 2008.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/20/01)
FINANCIAL SERVICES FUND		-48.04	%		-9.83	%		-6.14	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.06	%
S&P500 FINANCIALS INDEX		-55.27	%		-12.48	%		-7.71	%

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 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.	2.5	%
Wells Fargo & Co.	2.3	%
HSBC Holdings PLC — SP ADR	2.2	%
Bank of America Corp.	1.5	%
AXA — SP ADR	1.5	%
U.S. Bancorp	1.5	%
Travelers Companies, Inc.	1.4	%
Bank of New York Mellon Corp.	1.3	%
UBS AG — SP ADR	1.2	%
Goldman Sachs Group, Inc.	1.2	%
Top Ten Total	16.6	%

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

12    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

HEALTH CARE FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that are involved in the health care industry.

Inception: June 19, 2001

Rydex Health Care Fund returned -24.86% in 2008. The S&P 500 Index returned -37.00%. The health care providers & services industry was the worst performing industry, (down 41.4%) with Coventry Health Care the industry’s laggard (down 74.8%). The best stock of the year was Imclone Systems, which ended 2008 on a high note—up 62.8%.

Cumulative Fund Performance:
June 19, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(06/19/01)
HEALTH CARE FUND		-24.86	%		-0.32	%		-0.57	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.04	%
S&P500 HEALTH CARE INDEX		-22.81	%		-0.73	%		-1.70	%

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 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, Inc.	4.2	%
Novartis AG — SP ADR	3.8	%
Pfizer, Inc.	3.7	%
Teva Pharmaceutical Industries
Ltd. — SP ADR	3.4	%
Sanofi-Aventis — SP ADR	3.2	%
GlaxoSmithKline PLC — SP ADR	3.2	%
Genentech, Inc.	3.2	%
Abbott Laboratories	3.0	%
Amgen, Inc.	2.7	%
Merck & Company, Inc.	2.7	%
Top Ten Total	33.1	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    13

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

INTERNET FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that provide products or services designed for or related to the Internet.

Inception: May 24, 2001

Rydex Internet Fund returned -44.87% for the one-year period ending December 31, 2008 (the broad-market S&P 500 Index returned -37.00% for the same period). The Fund had some very small exposure to the financial industries, including thrifts & mortgage finance and capital markets. Despite the turmoil in the financial sector, these positions fared relatively well for the fund. The thrifts & mortgage finance position gained 1.9% and capital markets lost 5.1%. The worst-performing industry, computers & peripherals, fell 78.8%, with the worst performing stock, Sun Microsystems, down 78.9%. The best-performing stock was BEA Systems, which was up 22.8%. BEA Systems was recently acquired in

Cumulative Fund Performance:
May 24, 2001 – December 31, 2008

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

April, 2008 by Oracle, a leading provider of enterprise application software.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/24/01)
INTERNET FUND		-44.87	%		-5.27	%		-10.02	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.84	%
S&P500 INFORMATION TECHNOLOGY INDEX		-43.14	%		-5.77	%		-7.45	%

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)
Cisco Systems, Inc.	10.2	%
Google, Inc. — Class A	8.7	%
Qualcomm, Inc.	8.0	%
Time Warner, Inc.	6.5	%
Amazon.com, Inc.	5.0	%
Yahoo!, Inc.	4.5	%
Research In Motion Ltd.	4.4	%
eBay, Inc.	4.2	%
Symantec Corp.	3.6	%
Juniper Networks, Inc.	3.4	%
Top Ten Total	58.5	%

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

14    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

LEISURE FUND

OBJECTIVE: Seeks capital appreciation by investing in companies in leisure and entertainment businesses.

Inception: May 22, 2001

Rydex Leisure Fund turned in a -49.09% return compared to the S&P 500 Index’s -37.00% return. Consumer spending all but dried up this year. And, as real estate and equity values dropped, leisure stocks suffered. The best-performing industry, leisure equipment & products, lost 31.0%.The worst-performing industry, software (primarily video games), lost 66.0%. The best-performing stock, Panera Bread, was up 19.2%. The two worst-performing stocks, video game makers International Game Technology and Electronic Arts, each lost more than 72%.

Cumulative Fund Performance:
May 22, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/22/01)
LEISURE FUND		-49.09	%		-6.31	%		-6.48	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.99	%
S&P500 CONSUMER DISCRETIONARY INDEX		-33.49	%		-6.19	%		-5.17	%

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.	9.2	%
Walt Disney Co.	6.4	%
Time Warner, Inc.	6.2	%
Yum! Brands, Inc.	4.2	%
News Corp. — Class A	4.1	%
Carnival Corp.	3.7	%
Viacom, Inc. — Class B	3.3	%
Activision Blizzard, Inc.	2.9	%
Marriott International, Inc. — Class A	2.8	%
Mattel, Inc.	2.6	%
Top Ten Total	45.4	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    15

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: May 29, 1997

While the S&P 500 Index returned -37.00% for the one-year period ending December 31, 2008, Rydex Precious Metals Fund returned -38.56%. The Fund represents a concentrated investment in the stocks of gold and other precious metal producers. Gold and other precious metal stocks, normally thought of as defensive holdings, were unable to provide much shelter during the market turmoil. The two best-performing stocks produced double-digit gains: Royal Gold, up 62.9%, and Eldorado Gold Corp., up 37.1%. On the other end of the spectrum, the worst-performing stock was Apex Silver Mines, down 93.6%.

Cumulative Fund Performance:
December 31, 1998 — December 31, 2008

† 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 12/31/08
	ONE			FIVE			TEN
	YEAR			YEAR			YEAR
PRECIOUS METALS FUND		-38.56	%		-1.55	%		5.08	%
S&P500 INDEX		-37.00	%		-2.19	%		-1.38	%
S&P500 MATERIALS INDEX		-45.66	%		-1.25	%		2.97	%

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 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)
Barrick Gold Corp.	8.7	%
Goldcorp, Inc.	8.2	%
Newmont Mining Corp.	8.0	%
Agnico-Eagle Mines Ltd.	6.5	%
Kinross Gold Corp.	6.0	%
Yamana Gold, Inc.	4.7	%
Freeport-McMoRan Copper & Gold, Inc.	4.6	%
Gold Fields Ltd. — SP ADR	4.5	%
AngloGold Ashanti Ltd. — SP ADR	4.3	%
Eldorado Gold Corp.	4.1	%
Top Ten Total	59.6	%

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

16    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: July 23, 2001

Rydex Retailing Fund delivered a one-year -32.95% return versus the S&P 500 Index’s -37.00% return. This year, retailers suffered through one of the worst holiday shopping seasons in history. The lack of demand from the American consumer is leading to bankruptcies and store closings amongst retailing outfits across the country. The best-performing retail sector was truly defensively oriented: food & staples retailing, down 8.2%. The best-performing stock was Dollar Tree, which was up 61.0% for the year. The worst-performing stock was the online travel discounter, Expedia, which closed the year down 73.09%.

Cumulative Fund Performance:
July 23, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/23/01)
RETAILING FUND		-32.95	%		-5.62	%		-2.77	%
S&P500 INDEX		-37.00	%		-2.19	%		-1.84	%
S&P500 CONSUMER DISCRETIONARY INDEX		-33.49	%		-6.19	%		-4.13	%

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.	11.4	%
Home Depot, Inc.	4.9	%
CVS Caremark Corp.	4.8	%
Lowe’s Companies, Inc.	4.5	%
Walgreen Co.	3.8	%
Target Corp.	3.6	%
Costco Wholesale Corp.	3.4	%
Amazon.com, Inc.	3.4	%
Staples, Inc.	2.7	%
Kohl’s Corp.	2.6	%
Top Ten Total	45.1	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    17

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: May 2, 2001

For the one-year period ending December 31, 2008, Rydex Technology Fund returned -45.41%, versus the S&P 500 Index’s -37.00% return. Performance was very weak on the industry level. The top-performing industry, IT services, was down 30.9% for the year. The worst-performing industry groups, Internet software & services and communications equipment, were both down more than -52%. The best-performing stock in this industry for 2008 was BEA Systems, which ended the year on a positive note, returning 22.8% due to the company’s acquisition by Oracle. The worst performing stock was

Cumulative Fund Performance:
May 2, 2001 – December 31, 2008

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

semi-conductor manufacturer MEMC Electronic Materials, which closed the year down 83.9%.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
TECHNOLOGY FUND		-45.41	%		-7.82	%		-8.97	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.55	%
S&P500 INFORMATION TECHNOLOGY INDEX		-43.14	%		-5.77	%		-7.39	%

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 its 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)
Microsoft Corp.	3.6	%
International Business Machines Corp.	3.1	%
Oracle Corp.	2.9	%
Cisco Systems, Inc.	2.8	%
Hewlett-Packard Co.	2.7	%
Intel Corp.	2.7	%
Google, Inc. — Class A	2.4	%
Apple, Inc.	2.4	%
Nokia Oyj — SP ADR	2.2	%
Qualcomm, Inc.	2.2	%
Top Ten Total	27.0	%

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

18    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

TELECOMMUNICATIONS FUND

OBJECTIVE: Seeks capital appreciation by investing in companies engaged in the development, manufacture or sale of communications services or communications equipment.

Inception: July 27, 2001

Rydex Telecommunications Fund provided a -45.34% one-year total return compared to the S&P 500 Index’s -37.00% return. As expected, all industry performance was in negative territory. The top-performing industry was diversified telecommunication services, which ended the year down 25.4%. The worst-performing industry group, communications equipment, was down 52.4%, with the worst performing stock of the year being Sprint-Nextel, down 86.1%. On the positive side, the best performing stock of the year for telecom was Foundry Networks, which delivered a positive 8.8% for the year.

Cumulative Fund Performance:
July 27, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/27/01)
TELECOMMUNICATIONS FUND		-45.34	%		-4.05	%		-6.80	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.01	%
S&P500 TELECOMMUNICATION SERVICES INDEX		-30.48	%		3.83	%		-4.28	%

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.	11.0	%
Verizon Communications, Inc.	8.8	%
Vodafone Group PLC — SP ADR	8.5	%
Cisco Systems, Inc.	7.6	%
Deutsche Telekom AG — SP ADR	7.0	%
Qualcomm, Inc.	4.5	%
Nokia Oyj — SP ADR	4.3	%
America Movil SAB de CV — SP ADR	4.2	%
Telefonaktiebolaget LM Ericsson — SP ADR	4.2	%
Research In Motion Ltd.	3.2	%
Top Ten Total	63.3	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    19

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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.

Inception: June 11, 2001

Rydex Transportation Fund returned -25.26% for the one-year period ending December 31, 2008 compared to the S&P 500 Index’s -37.00% return. Only one of its four component industries was in positive territory. The top-performing industry was road & rail, up 7.23%. The worst-performing industry group, airlines, was down 43.67%. The best performing stock was Union Pacific Corp., up 37.64%, while the worst-performing stock was US Airways Group, Inc., down 73.87%.

Cumulative Fund Performance:
June 11, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(06/11/01)
TRANSPORTATION FUND		-25.26	%		-0.46	%		0.20	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.47	%
S&P500 INDUSTRIALS INDEX		-39.92	%		-1.63	%		-2.37	%

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 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	9.1	%
Burlington Northern Santa Fe Corp.	7.3	%
Delta Air Lines, Inc.	7.0	%
Union Pacific Corp.	6.4	%
FedEx Corp.	6.3	%
Canadian National Railway Co.	5.7	%
Norfolk Southern Corp.	4.4	%
CH Robinson Worldwide, Inc.	4.4	%
CSX Corp.	4.3	%
Expeditors International of Washington, Inc.	4.1	%
Top Ten Total	59.0	%

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

20    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (concluded)

UTILITIES FUND

OBJECTIVE: Seeks capital appreciation by investing in companies that operate public utilities.

Inception: May 2, 2001

With industry performance mostly positive, Rydex Utilities Fund returned -29.57% for the one-year period ending December 31, 2008 compared to the S&P 500 Index’s -37.00% return. The top-performing industry was independent power producers & energy traders, up 26.53%. The worst performing industry group, water utilities, was down 3.81%. The best performing stock was NRG Energy, Inc., up 55.26%, while the worst-performing stock was PNM Resources, Inc., down 19.39%.

Cumulative Fund Performance:
May 2, 2001 – December 31, 2008

† 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 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/02/01)
UTILITIES FUND		-29.57	%		4.52	%		-3.42	%
S&P500 INDEX		-37.00	%		-2.19	%		-2.55	%
S&P500 UTILITIES INDEX		-28.98	%		8.29	%		-0.60	%

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)
Exelon Corp.	4.0	%
Southern Co.	3.7	%
FPL Group, Inc.	3.3	%
Dominion Resources, Inc.	3.0	%
Duke Energy Corp.	2.8	%
Entergy Corp.	2.7	%
PG&E Corp.	2.7	%
Public Service Enterprise Group, Inc.	2.5	%
American Electric Power Company, Inc.	2.5	%
FirstEnergy Corp.	2.4	%
Top Ten Total	29.6	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    21

SCHEDULE OF INVESTMENTS

December 31, 2008

     BANKING FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.7%
Wells Fargo & Co.		37,829	$	1,115,199
JPMorgan Chase & Co.		31,156		982,349
U.S. Bancorp		37,298		932,823
HSBC Holdings PLC — SP ADR		16,821		818,679
UBS AG — SP ADR*		54,367		777,448
Credit Suisse Group AG — SP ADR		25,467		719,697
Bank of America Corp.		47,805		673,094
PNC Financial Services Group, Inc.		11,902		583,198
BB&T Corp.		20,033		550,106
Barclays PLC — SP ADR		54,651		535,580
Wachovia Corp.		92,750		513,835
Hudson City Bancorp, Inc.		28,509		455,004
SunTrust Banks, Inc.		14,100		416,514
People’s United Financial, Inc.		23,049		410,964
M&T Bank Corp.		5,963		342,336
TFS Financial Corp		25,199		325,067
Capitol Federal Financial		7,022		320,203
Regions Financial Corp.		39,183		311,897
Commerce Bancshares, Inc.		6,666		292,971
New York Community Bancorp, Inc.		23,431		280,235
Cullen/Frost Bankers, Inc.		5,418		274,584
KeyCorp		32,222		274,531
Fifth Third Bancorp		33,146		273,786
Valley National Bancorp		13,346		270,256
Associated Banc-Corp.		12,871		269,390
Marshall & Ilsley Corp.		18,528		252,722
BOK Financial Corp.		5,986		241,834
Synovus Financial Corp.		28,987		240,592
National City Corp.		130,449		236,113
City National Corp.		4,746		231,130
Huntington Bancshares, Inc.		30,135		230,834
First Horizon National Corp.		21,621		228,534
First Niagara Financial Group, Inc.		14,023		226,752
Comerica, Inc.		11,417		226,627
Bank of Hawaii Corp.		4,886		220,701
UMB Financial Corp.		4,485		220,393
BancorpSouth, Inc.		8,950		209,072
FirstMerit Corp.		10,124		208,453
Sovereign Bancorp, Inc.*		69,475		207,036
Zions Bancorporation		8,352		204,708
United Bankshares, Inc.		6,043		200,748
Fulton Financial Corp.		19,912		191,553
Westamerica Bancorporation		3,735		191,045
Investors Bancorp, Inc.*		14,110		189,497
Susquehanna Bancshares, Inc.		11,822		188,088
Astoria Financial Corp.		11,353		187,097
Hancock Holding Co.		4,110		186,841
First Financial Bankshares, Inc.		3,340		184,401
International Bancshares Corp.		8,378		182,892

			MARKET
	SHARES		VALUE
Cathay General Bancorp		7,600	$	180,500
Trustmark Corp.		8,360		180,492
NewAlliance Bancshares, Inc.		13,625		179,441
Old National Bancorp		9,767		177,369
TCF Financial Corp.		12,883		175,982
Wilmington Trust Corp.		7,890		175,474
Prosperity Bancshares, Inc.		5,910		174,877
National Penn Bancshares, Inc.		12,007		174,222
First Bancorp Puerto Rico		15,480		172,447
FNB Corp.		12,905		170,346
Washington Federal, Inc.		11,295		168,973
East-West Bancorp, Inc.		10,540		168,324
S&T Bancorp, Inc.		4,510		160,105
CVB Financial Corp.		13,430		159,817
Popular, Inc.		30,665		158,231
PrivateBancorp, Inc.		4,872		158,145
Park National Corp.		2,174		155,985
NBT Bancorp, Inc.		5,570		155,737
Signature Bank*		5,415		155,356
MB Financial Corp.		5,425		151,629
First Commonwealth Financial Corp.		12,220		151,284
Glacier Bancorp, Inc.		7,865		149,592
Umpqua Holding Corp.		10,270		148,607
First Midwest Bancorp, Inc.		7,146		142,706
Whitney Holding Corp.		8,835		141,272
Northwest Bancorp, Inc.		6,546		139,953
Pacific Capital Bancorp		7,990		134,871
Webster Financial Corp.		8,249		113,671
SVB Financial Group*		4,025		105,576
Colonial BancGroup, Inc.		25,916		53,646
Total Common Stocks
(Cost $21,881,235)				22,442,039
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.8%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	415,592		415,592
Total Repurchase Agreement
(Cost $415,592)				415,592
Total Investments 99.5%
(Cost $22,296,827)			$	22,857,631
Other Assets in Excess
of Liabilities – 0.5%			$	110,595
Net Assets – 100.0%			$	22,968,226

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

22    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     BASIC MATERIALS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.1%
BHP Billiton Ltd. — SP ADR		23,818	$	1,021,792
Barrick Gold Corp.		20,508		754,079
Companhia Vale do Rio
Doce — SP ADR		56,550		684,820
Monsanto Co.		9,439		664,034
Goldcorp, Inc.		20,212		637,284
ArcelorMittal		24,272		596,848
Newmont Mining Corp.		14,061		572,283
Syngenta AG — SP ADR		14,160		554,222
Nucor Corp.		11,527		532,547
Potash Corporation of Saskatchewan		6,730		492,771
Praxair, Inc.		8,080		479,629
E.I. du Pont de Nemours and Co.		18,912		478,474
Southern Copper Corp.		29,665		476,420
Kinross Gold Corp.		25,715		473,670
The Mosaic Co.		12,746		441,012
AngloGold Ashanti Ltd. — SP ADR		14,874		412,159
Rohm & Haas Co.		6,337		391,563
Rio Tinto PLC — SP ADR		4,327		384,714
Vulcan Materials Co.		5,366		373,366
Agnico-Eagle Mines Ltd.		6,763		347,145
Air Products & Chemicals, Inc.		6,808		342,238
Dow Chemical Co.		22,611		341,200
Alcoa, Inc.		29,736		334,827
Gold Fields Ltd. — SP ADR		33,431		331,970
Cemex SA de CV — SP ADR*		36,060		329,588
Ecolab, Inc.		9,070		318,811
Yamana Gold, Inc.		40,777		314,798
PPG Industries, Inc.		6,769		287,209
Cia de Minas Buenaventura SA — SP ADR		14,250		283,860
Freeport-McMoRan
Copper & Gold, Inc.		11,608		283,700
Gerdau SA — SP ADR		42,820		282,612
Owens-Illinois, Inc.*		10,233		279,668
Eldorado Gold Corp.*		33,695		267,875
Ball Corp.		6,414		266,758
Sigma-Aldrich Corp.		6,248		263,916
Harmony Gold Mining Co. Ltd. — SP ADR*		24,030		263,609
Martin Marietta Materials, Inc.		2,663		258,524
Agrium, Inc.		7,417		253,142
Weyerhaeuser Co.		7,972		244,023
Randgold Resources Ltd. — SP ADR		5,483		240,813
FMC Corp.		5,222		233,580
Sociedad Quimica y Minera de Chile SA — SP ADR		9,330		227,559
United States Steel Corp.		6,021		223,981
Airgas, Inc.		5,607		218,617
Pactiv Corp.*		8,616		214,366
Crown Holdings, Inc.*		10,821		207,763

			MARKET
	SHARES		VALUE
Steel Dynamics, Inc.		17,934	$	200,502
International Paper Co.		16,594		195,809
Iamgold Corp.		31,380		191,732
AptarGroup, Inc.		5,396		190,155
Allegheny Technologies, Inc.		7,384		188,514
Scotts Miracle-Gro Co. — Class A		6,260		186,047
Lubrizol Corp.		5,086		185,080
Compass Minerals International, Inc.		3,149		184,720
Bemis Co.		7,654		181,247
CF Industries Holdings, Inc.		3,580		175,993
Sonoco Products Co.		7,531		174,418
Cliffs Natural Resources Inc		6,768		173,328
Silgan Holdings, Inc.		3,550		169,726
International Flavors &
Fragrances, Inc.		5,540		164,649
Albemarle Corp.		7,090		158,107
Silver Wheaton Corp.*		24,014		155,851
Valspar Corp.		8,580		155,212
Eastman Chemical Co.		4,887		154,967
Sealed Air Corp.		10,239		152,971
Titanium Metals Corp.		16,840		148,360
Olin Corp.		7,902		142,868
RPM International, Inc.		10,735		142,668
Rock-Tenn Co. — Class A		4,080		139,454
Intrepid Potash, Inc.*		6,580		136,667
Nalco Holding Co.		11,539		133,160
Celanese Corp.		10,498		130,490
Reliance Steel & Aluminum Co.		6,313		125,881
MeadWestvaco Corp.		10,965		122,698
Terra Industries, Inc.		7,300		121,691
Packaging Corporation of America		8,543		114,989
Westlake Chemical Corp.		6,890		112,238
Cytec Industries, Inc.		4,875		103,448
AK Steel Holding Corp.		10,490		97,767
Cabot Corp.		5,990		91,647
Domtar Corp.*		47,670		79,609
Ashland, Inc.		6,555		68,893
Huntsman Corp.		15,780		54,283
Temple-Inland, Inc.		10,680		51,264
Total Common Stocks
(Cost $21,794,945)				23,340,942
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 2.0%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	469,457		469,457
Total Repurchase Agreement
(Cost $469,457)				469,457

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    23

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     BASIC MATERIALS FUND

	MARKET
	VALUE
Total Investments 100.1%
(Cost $22,264,402)	$	23,810,399
Liabilities in Excess of
Other Assets – (0.1)%	$	(21,998	)
Net Assets – 100.0%	$	23,788,401

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

24    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     BIOTECHNOLOGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.9%
Genentech, Inc.*		54,536	$	4,521,580
Amgen, Inc.*		67,591		3,903,380
Gilead Sciences, Inc.*		70,436		3,602,097
Celgene Corp.*		41,885		2,315,403
Biogen Idec, Inc.*		32,055		1,526,780
Genzyme Corp.*		22,829		1,515,161
Cephalon, Inc.*		14,901		1,147,973
Vertex Pharmaceuticals, Inc.*		34,646		1,052,545
Myriad Genetics, Inc.*		13,396		887,619
Alexion Pharmaceuticals, Inc.*		21,498		778,013
Onyx Pharmaceuticals, Inc.*		20,800		710,528
OSI Pharmaceuticals, Inc.*		17,722		692,044
Cubist Pharmaceuticals, Inc.*		25,112		606,706
BioMarin Pharmaceuticals, Inc.*		31,230		555,894
Isis Pharmaceuticals, Inc.*		39,060		553,871
Regeneron Pharmaceuticals, Inc.*		29,855		548,138
Amylin Pharmaceuticals, Inc.*		47,063		510,633
Martek Biosciences Corp.		16,162		489,870
Alnylam Pharmaceuticals, Inc.*		19,342		478,328
Alkermes, Inc.*		43,335		461,518
United Therapeutics Corp.*		7,315		457,553
Celera Corp.*		39,531		439,980
Acorda Therapeutics, Inc.*		21,142		433,622
Seattle Genetics, Inc.*		44,681		399,448
Theravance, Inc.*		32,220		399,206
Medarex, Inc.*		70,417		392,927
GTx, Inc.*		22,523		379,287
CV Therapeutics, Inc.*		38,846		357,772
Cepheid, Inc.*		33,635		349,131
Genomic Health, Inc.*		17,784		346,432
PDL BioPharma, Inc.		55,378		342,236
Momenta Pharmaceuticals, Inc.*		27,700		321,320
Metabolix, Inc.*		23,666		301,031
Dendreon Corp.*		63,774		292,085
Indevus Pharmaceuticals, Inc.*		86,876		272,791
Arena Pharmaceuticals, Inc.*		64,115		267,359
Enzon Pharmaceuticals, Inc.*		44,999		262,344
InterMune, Inc.*		24,697		261,294
Progenics Pharmaceuticals, Inc.*		24,889		256,606
Incyte Corp.*		65,306		247,510
Savient Pharmaceuticals, Inc.*		32,173		186,282
Human Genome Sciences, Inc.*		87,791		186,117
Rigel Pharmaceuticals, Inc.*		20,750		166,000
Zymogenetics, Inc.*		55,240		165,720
Sangamo Biosciences, Inc.*		36,220		126,046
Facet Biotech Corp.*		11,073		106,190
Total Common Stocks
(Cost $30,765,765)				34,574,370

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 1.7%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	593,776	$	593,776
Total Repurchase Agreement
(Cost $593,776)				593,776
Total Investments 99.6%
(Cost $31,359,541)			$	35,168,146
Other Assets in Excess of
Liabilities – 0.4%			$	127,997
Net Assets – 100.0%			$	35,296,143

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    25

SCHEDULE OF INVESTMENTS

December 31, 2008

     CONSUMER PRODUCTS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.2%
Procter & Gamble Co.		31,511	$	1,948,010
Coca-Cola Co.		33,482		1,515,730
Philip Morris International, Inc.		31,505		1,370,783
PepsiCo, Inc.		24,707		1,353,202
Unilever NV		37,381		917,704
Kraft Foods, Inc.		33,968		912,041
Colgate-Palmolive Co.		12,941		886,976
Diageo PLC — SP ADR		14,593		828,007
Archer-Daniels-Midland Co.		27,424		790,634
Altria Group, Inc.		47,266		711,826
General Mills, Inc.		10,603		644,132
Kimberly-Clark Corp.		12,119		639,156
Kroger Co.		23,216		613,135
Kellogg Co.		12,592		552,159
Cadbury PLC — SP ADR		14,245		508,119
Sysco Corp.		22,131		507,685
UST, Inc.		7,024		487,325
Safeway, Inc.		19,972		474,734
Reynolds American, Inc.		11,701		471,667
H.J. Heinz Co.		12,194		458,494
Molson Coors Brewing Co. — Class B		9,213		450,700
Lorillard, Inc.		7,912		445,841
Campbell Soup Co.		14,583		437,636
Avon Products, Inc.		16,933		406,900
Clorox Co.		7,193		399,643
Bunge Ltd.		7,602		393,556
ConAgra Foods, Inc.		22,638		373,527
Coca-Cola Enterprises, Inc.		29,737		357,736
Sara Lee Corp.		36,517		357,501
Hershey Co.		10,194		354,140
Pepsi Bottling Group, Inc.		13,679		307,914
Brown-Forman Corp. — Class B		5,728		294,935
Hansen Natural Corp.*		8,760		293,723
Hormel Foods Corp.		9,263		287,894
Church & Dwight Co., Inc.		4,877		273,697
McCormick & Co., Inc.		8,442		268,962
Constellation Brands, Inc. — Class A*		16,063		253,313
Dr Pepper Snapple Group, Inc.*		15,290		248,462
Estee Lauder Companies,
Inc. — Class A		7,956		246,318
Energizer Holdings, Inc.*		4,367		236,429
SUPERVALU, INC.		16,081		234,783
Dean Foods Co.*		12,512		224,841
J.M. Smucker Co.		5,030		218,101
Flowers Foods, Inc.		8,610		209,740
Tyson Foods, Inc. — Class A		23,409		205,063
Total Common Stocks
(Cost $22,048,822)				24,372,874

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 1.8%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	455,957	$	455,957
Total Repurchase Agreement
(Cost $455,957)				455,957
Total Investments 100.0%
(Cost $22,504,779)			$	24,828,831
Other Assets in Excess
of Liabilities – 0.0%			$	3,877
Net Assets – 100.0%			$	24,832,708

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4. ADR — American Depository Receipt.

26    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     ELECTRONICS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.2%
Intel Corp.		13,882	$	203,510
Taiwan Semiconductor Manufacturing Company Ltd. — SP ADR		18,353		144,989
Texas Instruments, Inc.		6,162		95,634
Applied Materials, Inc.		7,580		76,785
ASML Holding NV		4,012		72,497
Broadcom Corp. — Class A*		3,991		67,727
Altera Corp.		3,098		51,768
Analog Devices, Inc.		2,639		50,194
Nvidia Corp.*		6,214		50,147
STMicroelectronics NV — SP ADR		7,311		48,618
Linear Technology Corp.		2,181		48,244
Xilinx, Inc.		2,685		47,847
Marvell Technology Group Ltd.*		6,591		43,962
KLA-Tencor Corp.		1,967		42,861
Rambus, Inc.*		2,543		40,485
Microchip Technology, Inc.		1,957		38,220
Lam Research Corp.*		1,718		36,559
MEMC Electronic Materials, Inc.*		2,258		32,244
National Semiconductor Corp.		3,011		30,321
LSI Logic Corp.*		9,009		29,640
Micron Technology, Inc.*		9,599		25,341
Varian Semiconductor Equipment Associates, Inc.*		1,350		24,462
Atmel Corp.*		7,804		24,426
Silicon Laboratories, Inc.*		981		24,309
Cree, Inc.*		1,487		23,599
Hittite Microwave Corp.*		789		23,244
Novellus Systems, Inc.*		1,858		22,928
International Rectifier Corp.*		1,668		22,518
PMC — Sierra, Inc.*		4,489		21,817
ON Semiconductor Corp.*		6,381		21,695
Integrated Device Technology, Inc.*		3,766		21,127
Intersil Corp. — Class A		2,200		20,218
Skyworks Solutions, Inc.*		3,642		20,177
Cypress Semiconductor Corp.*		4,413		19,726
Semtech Corp.*		1,741		19,621
Atheros Communications, Inc.*		1,347		19,276
Advanced Micro Devices, Inc.*		8,812		19,034
FEI Co.*		988		18,634
MKS Instruments, Inc.*		1,234		18,251
Cymer, Inc.*		831		18,207
Formfactor, Inc.*		1,241		18,119
Microsemi Corp.*		1,417		17,911
Power Integrations, Inc.		889		17,673
Cabot Microelectronics Corp.*		663		17,284
Teradyne, Inc.*		3,888		16,407

			MARKET
	SHARES		VALUE
Fairchild Semiconductor
International, Inc.*		3,170	$	15,501
Tessera Technologies, Inc.*		1,283		15,242
Infineon Technologies
AG — SP ADR*		10,576		14,806
Amkor Technology, Inc.*		4,691		10,226
Total Common Stocks
(Cost $1,593,473)				1,824,031
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 2.2%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	41,352		41,352
Total Repurchase Agreement
(Cost $41,352)				41,352
Total Investments 99.4%
(Cost $1,634,825)			$	1,865,383
Other Assets in Excess
of Liabilities – 0.6%			$	11,763
Net Assets – 100.0%			$	1,877,146

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    27

SCHEDULE OF INVESTMENTS

December 31, 2008

     ENERGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.0%
Exxon Mobil Corp.		35,267	$	2,815,365
Chevron Corp.		22,807		1,687,034
BP PLC — SP ADR		34,171		1,597,153
Royal Dutch Shell PLC — SP ADR		24,424		1,293,007
ConocoPhillips		21,524		1,114,943
Occidental Petroleum Corp.		16,425		985,336
Petroleo Brasileiro SA		36,753		900,081
Schlumberger Ltd.		17,674		748,140
Devon Energy Corp.		10,136		666,037
Apache Corp.		8,530		635,741
XTO Energy, Inc.		16,848		594,229
Anadarko Petroleum Corp.		15,204		586,114
Canadian Natural Resources Ltd.		14,080		562,918
Marathon Oil Corp.		20,252		554,095
Hess Corp.		9,837		527,657
EOG Resources, Inc.		7,810		519,990
Halliburton Co.		26,703		485,461
Nexen, Inc.		25,638		450,716
Valero Energy Corp.		20,365		440,699
Talisman Energy, Inc.		41,074		410,329
Southwestern Energy Co.*		13,880		402,104
Tenaris SA — SP ADR		19,040		399,459
Noble Energy, Inc.		8,035		395,483
Transocean Ltd.*		8,079		381,733
National-Oilwell Varco, Inc.*		15,575		380,653
Baker Hughes, Inc.		11,519		369,414
Spectra Energy Corp.		23,168		364,664
Sunoco, Inc.		8,086		351,418
Murphy Oil Corp.		7,909		350,764
Chesapeake Energy Corp.		21,586		349,046
Cameco Corp.		19,923		343,672
Williams Companies, Inc.		23,459		339,686
CNX Gas Corp.*		12,239		334,125
Diamond Offshore Drilling, Inc.		5,400		318,276
Range Resources Corp.		8,945		307,619
Weatherford International Ltd.*		26,619		288,018
PetroHawk Energy Corp.*		18,280		285,716
El Paso Corp.		36,118		282,804
Peabody Energy Corp.		12,430		282,782
Consol Energy, Inc.		9,435		269,652
Noble Corp.		11,934		263,622
Ultra Petroleum Corp.*		7,522		259,584
Cameron International Corp.*		11,332		232,306
BJ Services Co.		19,702		229,922
Continental Resources, Inc.*		10,790		223,461
Smith International, Inc.		9,656		221,026
ENSCO International, Inc.		7,770		220,590
Cabot Oil & Gas Corp.		7,930		206,180

			MARKET
	SHARES		VALUE
Plains Exploration & Production Co.*		8,847	$	205,604
Nabors Industries Ltd.*		17,006		203,562
Denbury Resources, Inc.*		18,514		202,173
Newfield Exploration Co.*		9,879		195,110
Pride International, Inc.*		12,047		192,511
Tidewater, Inc.		4,568		183,953
Concho Resources, Inc.*		7,910		180,506
Helmerich & Payne, Inc.		7,693		175,016
Frontline Ltd.		5,892		174,462
FMC Technologies, Inc.*		7,298		173,911
IHS Inc.*		4,563		170,747
Arch Coal, Inc.		9,990		162,737
Cimarex Energy Co.		6,022		161,269
Patterson-UTI Energy, Inc.		14,004		161,186
Oceaneering International, Inc.*		5,321		155,054
Rowan Companies, Inc.		9,721		154,564
Southern Union Co.		11,250		146,700
Whiting Petroleum Corp.*		4,070		136,182
Dresser-Rand Group, Inc.*		7,747		133,636
Pioneer Natural Resources Co.		7,767		125,670
Forest Oil Corp.*		7,531		124,186
Massey Energy Co.		8,010		110,458
Atwood Oceanics, Inc.*		6,054		92,505
Alpha Natural Resources, Inc.*		5,643		91,360
SandRidge Energy, Inc.*		14,731		90,596
Walter Industries, Inc.		5,050		88,425
Total Common Stocks
(Cost $26,358,753)				30,220,907
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 0.8%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09				239,327
Total Repurchase Agreement
(Cost $239,327)	$	239,327		239,327
Total Investments 98.8%
(Cost $26,598,080)			$	30,460,234
Other Assets in Excess
of Liabilities – 1.2%			$	382,839
Net Assets – 100.0%			$	30,843,073

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

28    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     ENERGY SERVICES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.3%
Schlumberger Ltd.		48,905	$	2,070,149
Halliburton Co.		73,898		1,343,466
Tenaris SA — SP ADR		52,699		1,105,625
Transocean Ltd.*		22,354		1,056,226
National-Oilwell Varco, Inc.*		43,096		1,053,266
Baker Hughes, Inc.		31,883		1,022,488
Diamond Offshore Drilling, Inc.		14,931		880,033
Weatherford International Ltd.*		73,674		797,153
Noble Corp.		33,034		729,721
Cameron International Corp.*		31,367		643,023
BJ Services Co.		54,524		636,295
Smith International, Inc.		26,724		611,712
ENSCO International, Inc.		21,500		610,385
Nabors Industries Ltd.*		47,048		563,165
Pride International, Inc.*		33,348		532,901
Tidewater, Inc.		12,644		509,174
Helmerich & Payne, Inc.		21,279		484,097
FMC Technologies, Inc.*		20,198		481,318
IHS Inc.*		12,617		472,128
Patterson-UTI Energy, Inc.		38,752		446,036
SEACOR Holdings, Inc.*		6,633		442,089
Oceaneering International, Inc.*		14,724		429,057
Rowan Companies, Inc.		26,897		427,662
Exterran Holdings, Inc.*		18,822		400,909
Dresser-Rand Group, Inc.*		21,452		370,047
Unit Corp.*		13,348		356,659
Superior Energy Services*		22,063		351,464
RPC, Inc.		34,535		337,062
Oil States International, Inc.*		17,046		318,590
CARBO Ceramics, Inc.		8,487		301,543
Dril-Quip, Inc.*		13,024		267,122
Cal Dive International, Inc.*		40,577		264,156
Atwood Oceanics, Inc.*		16,772		256,276
Complete Production Services, Inc.*		28,113		229,121
Precision Drilling Trust		26,514		222,454
Helix Energy Solutions Group, Inc.*		30,221		218,800
Total Common Stocks
(Cost $20,857,277)				21,241,372

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 1.5%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	320,485	$	320,485
Total Repurchase Agreement
(Cost $320,485)				320,485
Total Investments 99.8%
(Cost $21,177,762)			$	21,561,857
Other Assets in Excess
of Liabilities – 0.2%			$	35,668
Net Assets – 100.0%			$	21,597,525

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    29

SCHEDULE OF INVESTMENTS

December 31, 2008

     FINANCIAL SERVICES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.1%
JPMorgan Chase & Co.		6,478	$	204,252
Wells Fargo & Co.		6,578		193,919
HSBC Holdings PLC — SP ADR		3,707		180,420
Bank of America Corp.		9,104		128,184
AXA — SP ADR		5,650		126,955
U.S. Bancorp		4,928		123,249
Travelers Companies, Inc.		2,649		119,735
Bank of New York Mellon Corp.		3,796		107,541
UBS AG — SP ADR*		7,172		102,560
Goldman Sachs Group, Inc.		1,190		100,424
MetLife, Inc.		2,856		99,560
AFLAC, Inc.		2,123		97,318
Chubb Corp.		1,867		95,217
Credit Suisse Group AG — SP ADR		3,366		95,123
Allstate Corp.		2,684		87,928
Aon Corp.		1,740		79,483
Charles Schwab Corp.		4,904		79,298
American Express Co.		4,245		78,745
PNC Financial Services Group, Inc.		1,552		76,048
Citigroup, Inc.		11,319		75,950
Franklin Resources, Inc.		1,185		75,579
Public Storage		947		75,286
Blackrock, Inc.		556		74,587
Morgan Stanley		4,607		73,896
BB&T Corp.		2,640		72,494
State Street Corp.		1,828		71,895
Barclays PLC — SP ADR		7,220		70,756
Marsh & McLennan Companies, Inc.		2,836		68,830
Wachovia Corp.		12,240		67,810
Loews Corp.		2,374		67,065
Annaly Capital Management, Inc.		4,195		66,575
Capital One Financial Corp.		2,076		66,204
Progressive Corp.		4,417		65,416
Merrill Lynch & Co., Inc.		5,604		65,231
Northern Trust Corp.		1,229		64,080
Simon Property Group, Inc.		1,165		61,896
Hudson City Bancorp, Inc.		3,761		60,026
TD Ameritrade Holding Corp.*		4,157		59,237
Vornado Realty Trust		977		58,962
T. Rowe Price Group, Inc.		1,611		57,094
W.R. Berkley Corp.		1,829		56,699
CME Group, Inc.		271		56,398
Prudential Financial, Inc.		1,856		56,163
SunTrust Banks, Inc.		1,860		54,944
People’s United Financial, Inc.		3,047		54,328
Equity Residential		1,813		54,064
NYSE Euronext		1,957		53,583
Brookfield Asset Management, Inc. — Class A		3,440		52,529
Fidelity National Financial, Inc. — Class A		2,918		51,795
Unum Group		2,764		51,410
HCP, Inc.		1,838		51,041

			MARKET
	SHARES		VALUE
Cincinnati Financial Corp.		1,719	$	49,971
IntercontinentalExchange, Inc.*		606		49,959
Principal Financial Group, Inc.		2,147		48,458
PartnerRe Ltd.		650		46,326
Plum Creek Timber Co., Inc. (REIT)		1,329		46,169
Invesco Ltd.		3,164		45,688
Everest Re Group Ltd.		600		45,684
Arch Capital Group Ltd.*		650		45,565
Boston Properties, Inc.		825		45,375
Axis Capital Holdings Ltd.		1,548		45,078
Odyssey Re Holdings Corp.		870		45,075
M&T Bank Corp.		774		44,435
TFS Financial Corp		3,329		42,944
Ventas, Inc.		1,257		42,197
Nasdaq Stock Market, Inc.*		1,700		42,007
Capitol Federal Financial		920		41,952
Health Care REIT, Inc.		989		41,736
Ameriprise Financial, Inc.		1,774		41,441
RenaissanceRe Holdings Ltd.		800		41,248
Regions Financial Corp.		5,172		41,169
HCC Insurance Holdings, Inc.		1,539		41,168
Torchmark Corp.		910		40,677
Discover Financial Services		4,229		40,302
CNA Financial Corp.		2,436		40,048
Moody’s Corp.		1,968		39,537
AvalonBay Communities, Inc.		650		39,377
Willis Group Holdings Ltd.		1,579		39,286
Commerce Bancshares, Inc.		870		38,237
Brown & Brown, Inc.		1,813		37,892
First American Corp.		1,310		37,846
SLM Corp.*		4,223		37,585
KIMCO Realty Corp.		2,055		37,565
Federal Realty Investment Trust		605		37,558
Regency Centers Corp.		797		37,220
Old Republic International Corp.		3,114		37,119
New York Community Bancorp, Inc.		3,091		36,968
Host Hotels & Resorts, Inc.		4,872		36,881
Lincoln National Corp.		1,926		36,286
KeyCorp		4,250		36,210
Fifth Third Bancorp		4,378		36,162
Cullen/Frost Bankers, Inc.		701		35,527
Associated Banc-Corp.		1,697		35,518
Valley National Bancorp		1,738		35,195
Legg Mason, Inc.		1,600		35,056
SEI Investments Co.		2,192		34,436
American Financial Group, Inc.		1,490		34,091
Nationwide Health Properties, Inc.		1,162		33,373
Leucadia National Corp.*		1,682		33,304
Marshall & Ilsley Corp.		2,441		33,295
Arthur J. Gallagher & Co.		1,274		33,009
Assurant, Inc.		1,100		33,000
Nationwide Financial Services, Inc.		630		32,892
Markel Corp.*		110		32,890
Hanover Insurance Group, Inc.		764		32,829
Hartford Financial Services Group, Inc.		1,999		32,824

30    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     FINANCIAL SERVICES FUND

			MARKET
	SHARES		VALUE
Transatlantic Holdings, Inc.		810	$	32,449
American International Group, Inc.		20,504		32,191
Realty Income Corp.		1,380		31,947
Synovus Financial Corp.		3,831		31,797
BOK Financial Corp.		784		31,674
Alleghany Corp.*		112		31,584
Mercury General Corp.		680		31,273
National City Corp.		17,221		31,170
Aspen Insurance Holdings Ltd.		1,280		31,040
Huntington Bancshares, Inc.		3,983		30,510
Brookfield Properties Corp.		3,909		30,217
City National Corp.		620		30,194
First Horizon National Corp.		2,853		30,153
Stancorp Financial Group, Inc.		720		30,074
First Niagara Financial Group, Inc.		1,856		30,012
Greenhill & Company, Inc.		430		30,001
Rayonier, Inc.		955		29,939
Eaton Vance Corp.		1,424		29,918
Comerica, Inc.		1,489		29,557
White Mountains Insurance Group Ltd.		110		29,382
Erie Indemnity Co. — Class A		780		29,351
Digital Realty Trust, Inc.		890		29,237
Senior Housing Properties Trust		1,620		29,030
UMB Financial Corp.		590		28,993
Bank of Hawaii Corp.		641		28,954
ProLogis		2,065		28,683
Highwoods Properties, Inc.		1,030		28,181
American National Insurance Co.		380		28,017
Jefferies Group, Inc.		1,990		27,979
ProAssurance Corp.*		530		27,973
Liberty Property Trust		1,201		27,419
Lazard Ltd. — Class A		920		27,361
BancorpSouth, Inc.		1,170		27,331
Sovereign Bancorp, Inc.*		9,167		27,318
FirstMerit Corp.		1,320		27,179
The St. Joe Co.*		1,110		26,995
AMB Property Corp.		1,145		26,816
Zions Bancorporation		1,090		26,716
Fulton Financial Corp.		2,633		25,329
Essex Property Trust, Inc.		330		25,328
Mack-Cali Realty Corp.		1,024		25,088
Camden Property Trust		790		24,759
Raymond James Financial, Inc.		1,426		24,427
Astoria Financial Corp.		1,480		24,390
Weingarten Realty Investors		1,172		24,249
Alexandria Real Estate Equities, Inc.		400		24,136
International Bancshares Corp.		1,096		23,926

			MARKET
	SHARES		VALUE
Washington Real Estate Investment Trust		840	$	23,772
UDR, Inc.		1,723		23,760
TCF Financial Corp.		1,701		23,236
Wilmington Trust Corp.		1,030		22,907
Douglas Emmett, Inc.		1,745		22,790
Affiliated Managers Group, Inc.*		531		22,260
Federated Investors, Inc. — Class B		1,301		22,065
Duke Realty Corp.		1,988		21,788
BRE Properties, Inc. — Class A		770		21,545
Apollo Investment Corp.		2,256		21,003
Popular, Inc.		4,043		20,862
Taubman Centers, Inc.		796		20,266
SL Green Realty Corp.		739		19,140
Janus Capital Group, Inc.		2,323		18,654
Potlatch Corp.		640		16,646
MBIA, Inc.*		4,060		16,524
Macerich Co.		895		16,253
CapitalSource, Inc.		3,505		16,193
Apartment Investment & Management Co. — Class A		1,300		15,016
Genworth Financial, Inc. — Class A		5,300		14,999
SVB Financial Group*		530		13,902
XL Capital Ltd.		3,446		12,750
Forest City Enterprises, Inc. — Class A		1,314		8,804
Developers Diversified Realty Corp.		1,644		8,023
American Capital Ltd.		2,405		7,792
Total Common Stocks
(Cost $7,985,393)				8,142,619
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.6%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	136,482		136,482
Total Repurchase Agreement
(Cost $136,482)				136,482
Total Investments 99.7%
(Cost $8,121,875)			$	8,279,101
Other Assets in Excess
of Liabilities – 0.3%			$	27,797
Net Assets – 100.0%			$	8,306,898

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.
	REIT — Real Estate Investment Trust.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    31

SCHEDULE OF INVESTMENTS

December 31, 2008

     HEALTH CARE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.3%
Johnson & Johnson, Inc.		24,848	$	1,486,656
Novartis AG — SP ADR		27,650		1,375,864
Pfizer, Inc.		74,583		1,320,865
Teva Pharmaceutical Industries Ltd. — SP ADR		28,658		1,219,971
Sanofi-Aventis — SP ADR		36,058		1,159,625
GlaxoSmithKline PLC — SP ADR		30,953		1,153,618
Genentech, Inc.*		13,732		1,138,520
Abbott Laboratories		19,946		1,064,518
Amgen, Inc.*		17,028		983,367
Merck & Company, Inc.		32,246		980,278
AstraZeneca PLC — SP ADR		22,472		922,026
Gilead Sciences, Inc.*		17,740		907,224
Bristol-Myers Squibb Co.		38,682		899,356
Wyeth		23,719		889,700
Eli Lilly & Co.		21,452		863,872
UnitedHealth Group, Inc.		27,366		727,936
Schering-Plough Corp.		39,636		675,001
Baxter International, Inc.		12,078		647,260
Medtronic, Inc.		19,137		601,285
Celgene Corp.*		10,552		583,315
Medco Health Solutions, Inc.*		13,122		549,943
WellPoint, Inc.*		12,803		539,390
Genzyme Corp.*		7,450		494,457
Alcon, Inc. — SP ADR		5,542		494,291
Becton, Dickinson & Co.		6,882		470,660
Biogen Idec, Inc.*		9,534		454,104
Covidien Ltd.		12,205		442,309
Express Scripts, Inc.*		7,646		420,377
Quest Diagnostics, Inc.		7,938		412,062
Stryker Corp.		9,865		394,107
Allergan, Inc.		9,770		393,926
Aetna, Inc.		13,782		392,787
Thermo Fisher Scientific, Inc.*		11,518		392,418
Cardinal Health, Inc.		11,193		385,823
St. Jude Medical, Inc.*		11,316		372,975
Boston Scientific Corp.*		47,760		369,662
Shire PLC — SP ADR		8,081		361,867
McKesson Corp.		9,295		359,995
C.R. Bard, Inc.		4,199		353,808
Forest Laboratories, Inc.*		13,512		344,151
Laboratory Corporation of
America Holdings*		5,199		334,868
AmerisourceBergen Corp.		8,531		304,215
Zimmer Holdings, Inc.*		7,525		304,161
Humana, Inc.*		7,964		296,898
Cephalon, Inc.*		3,808		293,368
DaVita, Inc.*		5,424		268,868
Vertex Pharmaceuticals, Inc.*		8,850		268,863
Life Technologies Corp.*		10,559		246,130

			MARKET
	SHARES		VALUE
Warner Chilcott Ltd.*		16,321	$	236,655
DENTSPLY International, Inc.		8,126		229,478
Hospira, Inc.*		8,555		229,445
Omnicare, Inc.		8,260		229,298
Varian Medical Systems, Inc.*		6,361		222,889
Cerner Corp.*		5,780		222,241
Edwards Lifesciences Corp.*		3,890		213,756
Pharmaceutical Product Development, Inc.		7,120		206,551
ResMed, Inc.*		5,500		206,140
Hologic, Inc.*		15,322		200,259
Waters Corp.*		5,460		200,109
Illumina, Inc.*		7,630		198,762
Alexion Pharmaceuticals, Inc.*		5,490		198,683
Perrigo Co.		6,130		198,060
Intuitive Surgical, Inc.*		1,543		195,946
Henry Schein, Inc.*		5,272		193,430
IMS Health, Inc.		12,690		192,380
CIGNA Corp.		11,281		190,085
Millipore Corp.*		3,544		182,587
Beckman Coulter, Inc.		3,810		167,411
Elan Corp. PLC -SP ADR*		26,410		158,460
Covance, Inc.*		3,418		157,331
Patterson Companies, Inc.*		8,295		155,531
Coventry Health Care, Inc.*		8,682		129,188
Charles River Laboratories International, Inc.*		4,577		119,917
Total Common Stocks
(Cost $33,236,735)				35,151,332
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 2.0%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	730,051		730,051
Total Repurchase Agreement
(Cost $730,051)				730,051
Total Investments 100.3%
(Cost $33,966,786)			$	35,881,383
Liabilities in Excess of
Other Assets – (0.3)%			$	(103,791	)
Net Assets – 100.0%			$	35,777,592

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

32    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     INTERNET FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.4%
Cisco Systems, Inc.*		14,989	$	244,321
Google, Inc. — Class A*		683		210,125
Qualcomm, Inc.		5,366		192,264
Time Warner, Inc.		15,545		156,383
Amazon.com, Inc.*		2,323		119,123
Yahoo!, Inc.*		8,804		107,409
Research In Motion Ltd.*		2,579		104,656
eBay, Inc.*		7,202		100,540
Symantec Corp.*		6,335		85,649
Juniper Networks, Inc.*		4,647		81,369
Broadcom Corp. — Class A*		4,542		77,078
Qwest Communications International, Inc.		20,449		74,434
Intuit, Inc.*		2,987		71,061
McAfee, Inc.*		1,868		64,577
BMC Software, Inc.*		2,257		60,736
Check Point Software Technologies Ltd.*		2,803		53,229
priceline.com, Inc.*		646		47,578
VeriSign, Inc.*		2,393		45,658
Red Hat, Inc.*		3,188		42,145
Akamai Technologies, Inc.*		2,761		41,663
HLTH Corp.*		3,863		40,407
Netflix, Inc.*		1,338		39,993
IAC/InterActiveCorp*		2,433		38,271
F5 Networks, Inc.*		1,670		38,176
Sun Microsystems, Inc.*		9,719		37,127
Equinix, Inc.*		669		35,584
Baidu.com — SP ADR*		268		34,993
Sohu.com, Inc.*		704		33,327
Expedia, Inc.*		3,983		32,820
Monster Worldwide, Inc.*		2,528		30,564
Total Common Stocks
(Cost $1,701,211)				2,341,260

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 2.2%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	53,290	$	53,290
Total Repurchase Agreement (Cost $53,290)				53,290
Total Investments 99.6% (Cost $1,754,501)			$	2,394,550
Other Assets in Excess of Liabilities – 0.4%			$	10,161
Net Assets – 100.0%			$	2,404,711

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    33

SCHEDULE OF INVESTMENTS

December 31, 2008

     LEISURE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.0%
McDonald’s Corp.		2,380	$	148,012
Walt Disney Co.		4,540		103,013
Time Warner, Inc.		9,816		98,749
Yum! Brands, Inc.		2,143		67,504
News Corp. — Class A		7,205		65,493
Carnival Corp.		2,409		58,587
Viacom, Inc. — Class B*		2,790		53,177
Activision Blizzard Inc.*		5,347		46,198
Marriott International, Inc. — Class A		2,282		44,385
Mattel, Inc.		2,623		41,968
Tim Hortons, Inc.		1,446		41,703
Starbucks Corp.*		4,271		40,404
Darden Restaurants, Inc.		1,326		37,367
Hasbro, Inc.		1,152		33,604
Burger King Holdings, Inc.		1,376		32,859
Wynn Resorts Ltd.*		703		29,709
MGM MIRAGE*		2,117		29,130
International Game Technology, Inc.		2,431		28,905
Electronic Arts, Inc.*		1,742		27,942
Starwood Hotels & Resorts Worldwide, Inc.		1,502		26,886
Choice Hotels International, Inc.		881		26,483
Marvel Entertainment, Inc.*		854		26,260
Penn National Gaming, Inc.*		1,165		24,908
Royal Caribbean Cruises Ltd.		1,789		24,599
Panera Bread Co. — Class A*		438		22,881
DreamWorks Animation SKG, Inc. — Class A*		897		22,658
Scientific Games Corp. — Class A*		1,213		21,276
Bally Technologies, Inc.*		878		21,098
Jack in the Box, Inc.*		930		20,544
WMS Industries, Inc.*		760		20,444
Brinker International, Inc.		1,566		16,506
Eastman Kodak Co.		2,475		16,285
Las Vegas Sands Corp.*		2,728		16,177
Vail Resorts, Inc.*		602		16,013
Regal Entertainment Group — Class A		1,559		15,917
Pool Corp.		885		15,903
International Speedway Corp. — Class A		529		15,198
Wyndham Worldwide Corp.		2,280		14,934
Polaris Industries, Inc.		514		14,726
Sonic Corp.*		1,198		14,580
Cheesecake Factory, Inc.*		1,300		13,130
Bob Evans Farms, Inc.		597		12,197
Cinemark Holdings, Inc.		1,629		12,103
Callaway Golf Co.		1,241		11,529
Life Time Fitness, Inc.*		744		9,635
Take-Two Interactive Software, Inc.		1,267		9,578

			MARKET
	SHARES		VALUE
CTC Media, Inc.*		1,920	$	9,216
Liberty Media Corp-Capital*		1,944		9,156
Warner Music Group Corp.		2,849		8,604
Gaylord Entertainment Co.*		740		8,022
Live Nation, Inc.*		1,267		7,273
Total Common Stocks
(Cost $1,619,738)				1,553,428
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.7%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	26,989		26,989
Total Repurchase Agreement
(Cost $26,989)				26,989
Total Investments 98.7%
(Cost $1,646,727)			$	1,580,417
Other Assets in Excess
of Liabilities – 1.3%			$	20,996
Net Assets – 100.0%			$	1,601,413

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.

34    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     PRECIOUS METALS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.0%
Barrick Gold Corp.		143,647	$	5,281,900
Goldcorp, Inc.		159,058		5,015,099
Newmont Mining Corp.		120,254		4,894,338
Agnico-Eagle Mines Ltd.		77,093		3,957,184
Kinross Gold Corp.		199,126		3,667,901
Yamana Gold, Inc.		369,970		2,856,168
Freeport-McMoRan Copper & Gold, Inc.		113,817		2,781,687
Gold Fields Ltd. — SP ADR		279,466		2,775,097
AngloGold Ashanti Ltd. — SP ADR		94,796		2,626,797
Eldorado Gold Corp.*		316,106		2,513,043
Randgold Resources
Ltd. — SP ADR		55,435		2,434,705
Silver Wheaton Corp.*		354,257		2,299,128
Pan American Silver Corp.*		131,879		2,251,174
Silver Standard Resources, Inc.*		137,160		2,186,330
Royal Gold, Inc.		44,174		2,173,803
Cia de Minas Buenaventura
SA — SP ADR		93,899		1,870,468
Harmony Gold Mining Co.
Ltd. — SP ADR*		165,417		1,814,624
Iamgold Corp.		295,697		1,806,709
Stillwater Mining Co.*		346,189		1,710,174
Hecla Mining Co.*		427,724		1,197,627
Coeur d’Alene Mines Corp.*		1,280,798		1,127,102
Golden Star Resources Ltd.*		972,702		972,702
Allied Nevada Gold Corp.*		144,950		733,447
Apex Silver Mines Ltd.*		556,413		545,285
Novagold Resources, Inc.*		245,344		365,563
Total Common Stocks
(Cost $38,676,212)				59,858,055

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 2.2%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	1,312,400	$	1,312,400
Total Repurchase Agreement
(Cost $1,312,400)				1,312,400
Total Investments 100.2%
(Cost $39,988,612)			$	61,170,455
Liabilities in Excess of
Other Assets – (0.2)%			$	(145,179	)
Net Assets – 100.0%			$	61,025,276

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    35

SCHEDULE OF INVESTMENTS

December 31, 2008

     RETAILING FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.9%
Wal-Mart Stores, Inc.		27,619	$	1,548,321
Home Depot, Inc.		29,166		671,401
CVS Caremark Corp.		22,618		650,041
Lowe’s Companies, Inc.		28,402		611,211
Walgreen Co.		21,190		522,757
Target Corp.		14,154		488,738
Costco Wholesale Corp.		8,859		465,098
Amazon.com, Inc.*		8,973		460,136
Staples, Inc.		20,470		366,822
Kohl’s Corp.*		9,941		359,864
Best Buy Company, Inc.		12,677		356,351
AutoZone, Inc.*		2,405		335,425
The Gap, Inc.		22,845		305,895
Sherwin-Williams Co.		4,836		288,951
Genuine Parts Co.		7,163		271,191
TJX Companies, Inc.		12,780		262,885
Bed Bath & Beyond, Inc.*		10,108		256,945
O’Reilly Automotive, Inc.*		7,818		240,325
Dollar Tree, Inc.*		5,289		221,080
Macy’s, Inc.		20,557		212,765
Advance Auto Parts, Inc.		6,025		202,741
Ross Stores, Inc.		6,812		202,521
J.C. Penney Company, Inc.		10,141		199,778
Family Dollar Stores, Inc.		7,634		199,018
priceline.com, Inc.*		2,494		183,683
Sears Holdings Corp.*		4,589		178,374
Limited Brands, Inc.		16,659		167,256
GameStop Corp. — Class A*		7,546		163,446
Tiffany & Co.		6,712		158,605
Netflix, Inc.*		5,169		154,501
AutoNation, Inc.*		15,590		154,029
Petsmart, Inc.		8,166		150,663
Nordstrom, Inc.		10,973		146,051
BJ’s Wholesale Club, Inc.*		4,242		145,331
American Eagle Outfitters, Inc.		14,309		133,932
Abercrombie & Fitch Co. — Class A		5,681		131,061
Urban Outfitters, Inc.*		8,601		128,843
Expedia, Inc.*		15,387		126,789
RadioShack Corp.		10,043		119,913
CarMax, Inc.*		14,938		117,712
Tractor Supply Co.*		3,190		115,287
LKQ Corp.*		9,857		114,933
Rent-A-Center, Inc.*		6,036		106,535
Dick’s Sporting Goods, Inc.*		7,085		99,969
Sally Beauty Holdings, Inc.*		16,690		94,966
Guess?, Inc.		6,073		93,221
Big Lots, Inc.*		6,122		88,708
Liberty Media Corp — Interactive*		28,220		88,046

			MARKET
	SHARES		VALUE
Buckle, Inc.		3,863	$	84,291
Aeropostale, Inc.*		5,223		84,090
Foot Locker, Inc.		10,972		80,535
Barnes & Noble, Inc.		5,055		75,825
Williams-Sonoma, Inc.		9,215		72,430
J. Crew Group, Inc.*		5,619		68,552
Total Common Stocks
(Cost $12,395,920)				13,327,837
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 2.0%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	274,779		274,779
Total Repurchase Agreement
(Cost $274,779)				274,779
Total Investments 99.9%
(Cost $12,670,699)			$	13,602,616
Other Assets in Excess
of Liabilities – 0.1%			$	18,466
Net Assets – 100.0%			$	13,621,082

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.

36    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     TECHNOLOGY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.3%
Microsoft Corp.		13,524	$	262,907
International Business Machines Corp.		2,650		223,024
Oracle Corp.*		11,908		211,129
Cisco Systems, Inc.*		12,427		202,560
Hewlett-Packard Co.		5,426		196,909
Intel Corp.		13,101		192,061
Google, Inc. — Class A*		568		174,745
Apple, Inc.*		2,034		173,602
Nokia Oyj — SP ADR		10,329		161,132
Qualcomm, Inc.		4,449		159,408
SAP AG — SP ADR		3,930		142,345
Taiwan Semiconductor Manufacturing Company Ltd. — SP ADR		17,320		136,828
Canon, Inc. — SP ADR		4,330		135,962
Telefonaktiebolaget LM Ericsson — SP ADR		14,306		111,730
Automatic Data Processing, Inc.		2,646		104,094
Visa, Inc.		1,940		101,753
EMC Corp*		9,697		101,528
Accenture Ltd. — Class A		3,002		98,436
Texas Instruments, Inc.		5,813		90,218
Yahoo!, Inc.*		7,302		89,084
Research In Motion Ltd.*		2,140		86,841
Dell, Inc.*		8,223		84,203
eBay, Inc.*		5,967		83,299
Infosys Technologies Ltd. — SP ADR		3,150		77,395
MasterCard, Inc.		525		75,038
Applied Materials, Inc.		7,155		72,480
CA, Inc.		3,891		72,100
Corning, Inc.		7,548		71,932
Symantec Corp.*		5,253		71,021
ASML Holding NV		3,789		68,467
Juniper Networks, Inc.*		3,851		67,431
Paychex, Inc.		2,472		64,964
Broadcom Corp. — Class A*		3,771		63,994
Adobe Systems, Inc.*		2,976		63,359
Motorola, Inc.		14,171		62,777
Activision Blizzard Inc.*		7,020		60,653
Intuit, Inc.*		2,482		59,047
Western Union Co.		4,090		58,651
Xerox Corp.		7,059		56,260
McAfee, Inc.*		1,547		53,480
Computer Sciences Corp.*		1,485		52,183
Tyco Electronics Ltd.		3,190		51,710
BMC Software, Inc.*		1,876		50,483
Fiserv, Inc.*		1,379		50,154
AU Optronics Corp. — SP ADR		6,504		49,951
Harris Corp.		1,312		49,922
Altera Corp.		2,925		48,877
Cognizant Technology Solutions Corp. — Class A*		2,662		48,076

			MARKET
	SHARES		VALUE
Analog Devices, Inc.		2,493	$	47,417
Nvidia Corp.*		5,867		47,347
Citrix Systems, Inc.*		1,992		46,951
NetApp, Inc.*		3,342		46,688
STMicroelectronics NV — SP ADR		6,898		45,872
Linear Technology Corp.		2,057		45,501
Affiliated Computer Services, Inc. — Class A*		987		45,353
Xilinx, Inc.		2,532		45,120
Flir Systems, Inc.*		1,460		44,793
SAIC, Inc.*		2,280		44,414
Check Point Software Technologies Ltd.*		2,327		44,190
Alcatel-Lucent*		20,068		43,146
Agilent Technologies, Inc.*		2,663		41,623
Marvell Technology Group Ltd.*		6,223		41,507
Salesforce.com, Inc.*		1,280		40,973
Autodesk, Inc.*		2,062		40,518
KLA-Tencor Corp.		1,859		40,508
Amphenol Corp.		1,658		39,759
Lender Processing Services, Inc.		1,340		39,463
Fidelity National Information Services, Inc.		2,333		37,958
VeriSign, Inc.*		1,989		37,950
Alliance Data Systems Corp.*		804		37,410
Trimble Navigation Ltd.*		1,710		36,953
Electronic Arts, Inc.*		2,288		36,699
Amdocs, Ltd.*		2,001		36,598
Synopsys, Inc.*		1,956		36,225
Microchip Technology, Inc.		1,848		36,091
Total System Services, Inc.		2,570		35,980
Avnet, Inc.*		1,961		35,710
Hewitt Associates, Inc. — Class A*		1,240		35,191
Red Hat, Inc.*		2,644		34,954
Lam Research Corp.*		1,625		34,580
Akamai Technologies, Inc.*		2,290		34,556
Teradata Corp.*		2,320		34,406
ANSYS, Inc.*		1,193		33,273
Nuance Communications, Inc.*		3,200		33,152
Ingram Micro, Inc. — Class A*		2,433		32,578
Lexmark International, Inc.*		1,206		32,441
Arrow Electronics, Inc.*		1,712		32,254
Global Payments, Inc.		970		31,806
IAC/InterActiveCorp*		2,020		31,775
FactSet Research Systems Inc.		710		31,410
Sun Microsystems, Inc.*		8,060		30,789
Metavante Technologies, Inc.*		1,890		30,448
MEMC Electronic Materials, Inc.*		2,126		30,359
Mettler Toledo International, Inc.*		449		30,263
Baidu.com — SP ADR*		230		30,031
Satyam Computer Services Ltd. — SP ADR		3,320		30,013
Sybase, Inc.*		1,210		29,972

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    37

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     TECHNOLOGY FUND

			MARKET
	SHARES		VALUE
Western Digital Corp.*		2,617	$	29,965
Itron, Inc.*		470		29,958
National Instruments Corp.		1,220		29,719
NCR Corp.*		2,087		29,510
Equinix, Inc.*		550		29,254
National Semiconductor Corp.		2,843		28,629
DST Systems, Inc.*		742		28,181
LSI Logic Corp.*		8,505		27,981
Sohu.com, Inc.*		580		27,457
SanDisk Corp.*		2,546		24,442
Micron Technology, Inc.*		9,058		23,913
Flextronics International Ltd.*		9,103		23,304
Seagate Technology		5,190		22,992
Cree, Inc.*		1,400		22,218
ON Semiconductor Corp.*		6,020		20,468
Advanced Micro Devices, Inc.*		8,320		17,971
Infineon Technologies
AG — SP ADR*		9,980		13,972
Total Common Stocks
(Cost $7,279,902)				7,117,105
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 2.2%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	155,696		155,696
Total Repurchase Agreement
(Cost $155,696)				155,696
Total Investments 100.5%
(Cost $7,435,598)			$	7,272,801
Liabilities in Excess of
Other Assets – (0.5)%			$	(34,475	)
Net Assets – 100.0%			$	7,238,326

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

38    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     TELECOMMUNICATIONS FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.5%
AT&T, Inc.		33,939	$	967,262
Verizon Communications, Inc.		22,652		767,903
Vodafone Group PLC — SP ADR		36,296		741,890
Cisco Systems, Inc.*		40,694		663,312
Deutsche Telekom AG — SP ADR		39,999		611,985
Qualcomm, Inc.		10,939		391,944
Nokia Oyj — SP ADR		24,377		380,281
America Movil SAB de
CV — SP ADR		11,857		367,448
Telefonaktiebolaget LM
Ericsson — SP ADR		46,836		365,789
Research In Motion Ltd.*		7,005		284,263
Corning, Inc.		24,705		235,439
American Tower Corp. — Class A*		7,897		231,540
Juniper Networks, Inc.*		12,616		220,906
Motorola, Inc.		46,397		205,539
Qwest Communications
International, Inc.		55,527		202,118
MetroPCS Communications, Inc.*		11,318		168,072
Harris Corp.		4,295		163,425
Embarq Corp.		4,513		162,288
Crown Castle International Corp.*		8,340		146,617
Windstream Corp.		15,565		143,198
Alcatel-Lucent*		65,702		141,259
Tele Norte Leste Participacoes
SA — ADR		10,006		139,284
U.S. Cellular Corp.*		2,798		120,986
Frontier Communications Corp.		13,202		115,385
Sprint Nextel Corp.*		59,906		109,628
CenturyTel, Inc.		3,905		106,724
NII Holdings, Inc. — Class B*		5,828		105,953
Leap Wireless International,
Inc. — Class B*		3,603		96,885
SBA Communications Corp.*		5,507		89,874
Polycom, Inc.*		4,614		62,335
CommScope, Inc.*		3,759		58,415
Level 3 Communications, Inc.*		72,187		50,531
Total Common Stocks
(Cost $7,747,926)				8,618,478

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 1.8%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	161,278	$	161,278
Total Repurchase Agreement
(Cost $161,278)				161,278
Total Investments 100.3%
(Cost $7,909,204)			$	8,779,756
Liabilities in Excess of
Other Assets – (0.3)%			$	(25,664	)
Net Assets – 100.0%			$	8,754,092

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    39

SCHEDULE OF INVESTMENTS

December 31, 2008

     TRANSPORTATION FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.2%
United Parcel Service,
Inc. — Class B		35,462	$	1,956,084
Burlington Northern
Santa Fe Corp.		20,633		1,562,124
Delta Air Lines, Inc.*		131,891		1,511,471
Union Pacific Corp.		28,608		1,367,462
FedEx Corp.		21,103		1,353,757
Canadian National Railway Co.		33,510		1,231,828
Norfolk Southern Corp.		20,276		953,986
CH Robinson Worldwide, Inc.		17,335		953,945
CSX Corp.		28,556		927,213
Expeditors International of
Washington, Inc.		26,721		889,008
Southwest Airlines Co.		77,652		669,360
AMR Corp.*		53,816		574,217
JetBlue Airways Corp.*		78,815		559,587
Continental Airlines,
Inc. — Class B*		29,309		529,321
J.B. Hunt Transport Services, Inc.		20,085		527,633
UAL Corp.		42,389		467,127
Landstar System, Inc.		11,659		448,055
Ryder System, Inc.		10,797		418,708
UTI Worldwide, Inc.		28,354		406,596
Heartland Express, Inc.		25,342		399,390
Hertz Global Holdings, Inc.*		78,088		395,906
Knight Transportation, Inc.		23,986		386,654
Old Dominion Freight Line, Inc.*		12,122		344,992
Werner Enterprises, Inc.		19,447		337,211
Kirby Corp.*		12,161		332,725
Genesee & Wyoming,
Inc. — Class A*		10,482		319,701
Kansas City Southern*		16,620		316,611
Con-way, Inc.		11,166		297,016
HUB Group, Inc. — Class A*		10,506		278,724
Alexander & Baldwin, Inc.		10,326		258,770
DryShips Inc.		13,484		143,739
Total Common Stocks
(Cost $18,819,892)				21,118,921

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT† 1.9%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	411,625	$	411,625
Total Repurchase Agreement
(Cost $411,625)				411,625
Total Investments 100.1%
(Cost $19,231,517)			$	21,530,546
Liabilities in Excess of
Other Assets – (0.1)%			$	(21,102	)
Net Assets – 100.0%			$	21,509,444

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.

40    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     UTILITIES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.1%
Exelon Corp.		24,774	$	1,377,682
Southern Co.		34,083		1,261,071
FPL Group, Inc.		22,344		1,124,574
Dominion Resources, Inc.		28,487		1,020,974
Duke Energy Corp.		64,646		970,337
Entergy Corp.		11,197		930,807
PG&E Corp.		23,773		920,253
Public Service Enterprise Group, Inc.		30,013		875,479
American Electric Power
Company, Inc.		25,512		849,039
FirstEnergy Corp.		17,178		834,507
Sempra Energy		17,863		761,500
Progress Energy, Inc.		18,755		747,387
PPL Corp.		23,992		736,315
Consolidated Edison, Inc.		18,707		728,264
Edison International		22,404		719,617
Xcel Energy, Inc.		36,188		671,287
Ameren Corp.		18,340		609,988
Questar Corp.		18,464		603,588
NRG Energy, Inc.*		25,040		584,183
Allegheny Energy, Inc.		17,121		579,717
DTE Energy Co.		15,662		558,664
Equitable Resources, Inc.		15,863		532,204
Wisconsin Energy Corp.		12,385		519,922
AES Corp.*		62,547		515,387
CenterPoint Energy, Inc.		40,546		511,691
NSTAR		13,502		492,688
SCANA Corp.		13,742		489,215
Constellation Energy Group, Inc.		19,023		477,287
Northeast Utilities		19,735		474,824
MDU Resources Group, Inc.		21,180		457,064
Puget Energy, Inc.		16,671		454,618
Mirant Corp.*		24,035		453,541
American Water Works Company, Inc.		20,839		435,118
Alliant Energy Corp.		14,338		418,383
Pinnacle West Capital Corp.		12,957		416,308
Pepco Holdings, Inc.		23,405		415,673
Aqua America, Inc.		20,110		414,065
Integrys Energy Group, Inc.		9,356		402,121
Oneok, Inc.		13,566		395,042
UGI Corp.		15,732		384,175
NV Energy, Inc.		38,321		378,995
AGL Resources, Inc.		11,927		373,911
DPL, Inc.		16,024		365,988
NiSource, Inc.		33,189		364,083
Piedmont Natural Gas Co.		11,235		355,812
Great Plains Energy, Inc.		18,122		350,298
ITC Holdings Corp.		8,011		349,921
National Fuel Gas Co.		11,149		349,298

			MARKET
	SHARES		VALUE
OGE Energy Corp.		13,526	$	348,700
Westar Energy, Inc.		16,951		347,665
CMS Energy Corp.		34,222		345,984
TECO Energy, Inc.		27,949		345,170
Calpine Corp.*		46,871		341,221
Vectren Corp.		13,360		334,134
Atmos Energy Corp.		13,984		331,421
New Jersey Resources Corp.		8,220		323,457
WGL Holdings, Inc.		9,775		319,545
Energen Corp.		10,873		318,905
Reliant Energy, Inc.*		54,933		317,513
Hawaiian Electric Industries, Inc.		13,333		295,193
Ormat Technologies, Inc.		8,797		280,360
Nicor, Inc.		7,530		261,592
Dynegy Inc.*		89,073		178,146
Total Common Stocks
(Cost $30,017,555)				33,701,871
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.9%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	637,486		637,486
Total Repurchase Agreement
(Cost $637,486)				637,486
Total Investments 100.0%
(Cost $30,655,041)			$	34,339,357
Other Assets in Excess
of Liabilities – 0.0%			$	3,503
Net Assets – 100.0%			$	34,342,860

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 4.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    41

STATEMENTS OF ASSETS AND LIABILITIES

				Basic			Bio-			Consumer
	Banking			Materials			technology			Products
	Fund			Fund			Fund			Fund
ASSETS
Investment Securities	$	22,442,039		$	23,340,942		$	34,574,370		$	24,372,874
Repurchase Agreements		415,592			469,457			593,776			455,957
Total Investments		22,857,631			23,810,399			35,168,146			24,828,831
Receivable for Securities Sold		—			—			—			227,341
Receivable for Fund Shares Sold		103,091			298,853			712,910			1,455
Investment Income Receivable		69,669			31,594			—			90,134
Total Assets		23,030,391			24,140,846			35,881,056			25,147,761
LIABILITIES
Payable for Securities Purchased		—			164,390			517,007			—
Payable for Fund Shares Redeemed		18,862			124,187			5,815			261,986
Investment Advisory Fees Payable		15,274			14,749			21,983			16,669
Transfer Agent and Administrative Fees Payable		4,492			4,338			6,466			4,903
Distribution and Service Fees Payable		4,492			4,338			6,466			4,903
Portfolio Accounting Fees Payable		1,797			1,735			2,586			1,961
Custody Fees Payable		608			584			1,787			635
Other Accrued Fees		16,640			38,124			22,803			23,996
Total Liabilities		62,165			352,445			584,913			315,053
NET ASSETS	$	22,968,226		$	23,788,401		$	35,296,143		$	24,832,708
NET ASSETS CONSIST OF
Paid-In Capital	$	34,581,279		$	28,118,202		$	47,128,682		$	29,315,687
Undistributed Net Investment Income (Loss)		435,757			86,889			—			346,841
Accumulated Net Realized Loss on Investments		(12,609,614	)		(5,962,687	)		(15,641,144	)		(7,153,872	)
Net Unrealized Appreciation (Depreciation) on Investments		560,804			1,545,997			3,808,605			2,324,052
NET ASSETS	$	22,968,226		$	23,788,401		$	35,296,143		$	24,832,708
SHARES OUTSTANDING		1,713,945			1,227,276			1,854,766			902,755
NET ASSET VALUES	$	13.40		$	19.38		$	19.03		$	27.51
Cost of Investments	$	22,296,827		$	22,264,402		$	31,359,541		$	22,504,779

42    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

December 31, 2008

						Energy			Financial			Health									Precious
Electronics			Energy			Services			Services			Care			Internet			Leisure			Metals
Fund			Fund			Fund			Fund			Fund			Fund			Fund			Fund
$	1,824,031		$	30,220,907		$	21,241,372		$	8,142,619		$	35,151,332		$	2,341,260		$	1,553,428		$	59,858,055
	41,352			239,327			320,485			136,482			730,051			53,290			26,989			1,312,400
	1,865,383			30,460,234			21,561,857			8,279,101			35,881,383			2,394,550			1,580,417			61,170,455
	68,134			669,264			—			—			392,622			15,511			—			—
	—			85,934			1,675,686			696,588			64,591			4,279			427,872			1,195,064
	369			48,154			16,423			30,646			55,222			832			2,718			23,455
	1,933,886			31,263,586			23,253,966			9,006,335			36,393,818			2,415,172			2,011,007			62,388,974
	—			—			1,583,497			667,009			—			—			400,002			678,275
	50,279			330,788			3,472			9,611			539,191			1,499			2,250			576,349
	1,504			22,586			13,804			5,573			24,897			1,672			795			32,638
	442			6,643			4,060			1,639			7,323			492			234			10,879
	442			6,643			4,060			1,639			7,323			492			234			10,879
	177			2,657			1,624			656			2,929			197			94			4,352
	57			881			530			217			1,158			64			30			1,419
	3,839			50,315			45,394			13,093			33,405			6,045			5,955			48,907
	56,740			420,513			1,656,441			699,437			616,226			10,461			409,594			1,363,698
$	1,877,146		$	30,843,073		$	21,597,525		$	8,306,898		$	35,777,592		$	2,404,711		$	1,601,413		$	61,025,276
$	14,483,099		$	30,270,303		$	24,084,485		$	19,924,094		$	46,274,763		$	9,295,441		$	4,719,914		$	69,531,552
	—			—			—			264,133			—			—			—			(96,056	)
	(12,836,511	)		(3,289,384	)		(2,871,055	)		(12,038,555	)		(12,411,768	)		(7,530,779	)		(3,052,191	)		(29,592,063	)
	230,558			3,862,154			384,095			157,226			1,914,597			640,049			(66,310	)		21,181,843
$	1,877,146		$	30,843,073		$	21,597,525		$	8,306,898		$	35,777,592		$	2,404,711		$	1,601,413		$	61,025,276
	275,216			1,504,922			1,523,400			728,140			1,685,984			244,478			52,554			6,605,972
$	6.82		$	20.49		$	14.18		$	11.41		$	21.22		$	9.84		$	30.47		$	9.24
$	1,634,825		$	26,598,080		$	21,177,762		$	8,121,875		$	33,966,786		$	1,754,501		$	1,646,727		$	39,988,612

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    43

STATEMENTS OF ASSETS AND LIABILITIES (concluded)

							Telecom-			Trans-
	Retailing			Technology			munications			portation
	Fund			Fund			Fund			Fund
ASSETS
Investment Securities	$	13,327,837		$	7,117,105		$	8,618,478		$	21,118,921
Repurchase Agreements		274,779			155,696			161,278			411,625
Total Investments		13,602,616			7,272,801			8,779,756			21,530,546
Receivable for Securities Sold		—			—			302,174			195,893
Receivable for Fund Shares Sold		79,211			2,683			—			981
Investment Income Receivable		10,949			3,576			26,540			20,879
Total Assets		13,692,776			7,279,060			9,108,470			21,748,299
LIABILITIES
Payable for Fund Shares Redeemed		49,467			19,372			330,028			197,668
Investment Advisory Fees Payable		7,950			5,267			6,663			13,634
Transfer Agent and Administrative Fees Payable		2,338			1,549			1,960			4,010
Distribution and Service Fees Payable		2,338			1,549			1,960			4,010
Portfolio Accounting Fees Payable		935			620			784			1,604
Custody Fees Payable		303			200			258			523
Other Accrued Fees		8,363			12,177			12,725			17,406
Total Liabilities		71,694			40,734			354,378			238,855
NET ASSETS	$	13,621,082		$	7,238,326		$	8,754,092		$	21,509,444
NET ASSETS CONSIST OF
Paid-In Capital	$	17,659,639		$	15,931,335		$	13,157,265		$	28,154,907
Undistributed Net Investment Income		—			—			180,137			41,800
Accumulated Net Realized Loss on Investments		(4,970,474	)		(8,530,212	)		(5,453,862	)		(8,986,292	)
Net Unrealized Appreciation (Depreciation) on Investments		931,917			(162,797	)		870,552			2,299,029
NET ASSETS	$	13,621,082		$	7,238,326		$	8,754,092		$	21,509,444
SHARES OUTSTANDING		1,810,086			1,026,710			1,102,666			1,971,812
NET ASSET VALUES	$	7.53		$	7.05		$	7.94		$	10.91
Cost of Investments	$	12,670,699		$	7,435,598		$	7,909,204		$	19,231,517

44    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

December 31, 2008

Utilities
Fund
$	33,701,871
	637,486
	34,339,357
	1,063,702
	18,567
	85,702
	35,507,328
	1,086,067
	25,298
	7,441
	7,441
	2,976
	968
	34,277
	1,164,468
$	34,342,860
$	36,213,473
	777,787
	(6,332,716	)
	3,684,316
$	34,342,860
	2,229,121
$	15.41
$	30,655,041

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    45

STATEMENTS OF OPERATIONS

				Basic			Bio-			Consumer
	Banking			Materials			technology			Products
	Fund			Fund			Fund			Fund
INVESTMENT INCOME
Interest	$	568		$	5,569		$	1,960		$	2,452
Income from Securities Lending, net		25,909			60,724			36,233			13,337
Dividends, Net of Foreign Tax Withheld		656,838			933,145			44,117			792,154
Total Income		683,315			999,438			82,310			807,943
EXPENSES
Investment Advisory Fees		128,813			486,724			186,382			243,944
Transfer Agent and Administrative Fees		37,886			143,154			54,818			71,748
Audit and Outside Service Fees		12,548			29,775			16,961			18,380
Portfolio Accounting Fees		15,155			57,262			21,927			28,699
Trustees’ Fees*		1,490			7,662			1,856			3,410
Shareholder Service Fees		37,886			143,154			54,818			71,748
Custody Fees		5,369			15,593			8,201			7,926
Miscellaneous		8,411			29,225			13,083			15,247
Total Expenses		247,558			912,549			358,046			461,102
Net Investment Income (Loss)		435,757			86,889			(275,736	)		346,841
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities		(10,573,313	)		1,152,831			(7,929,098	)		(5,215,418	)
Total Net Realized Gain (Loss)		(10,573,313	)		1,152,831			(7,929,098	)		(5,215,418	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		447,394			(23,178,062	)		900,607			(3,412,150	)
Net Change in Unrealized Appreciation (Depreciation)		447,394			(23,178,062	)		900,607			(3,412,150	)
Net Loss on Investments		(10,125,919	)		(22,025,231	)		(7,028,491	)		(8,627,568	)
Net Decrease in Net Assets from Operations	$	(9,690,162	)	$	(21,938,342	)	$	(7,304,227	)	$	(8,280,727	)
Foreign Tax Withheld	$	3,052		$	19,505		$	—		$	5,542

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

46    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Year Ended December 31, 2008

						Energy			Financial			Health									Precious
Electronics			Energy			Services			Services			Care			Internet			Leisure			Metals
Fund			Fund			Fund			Fund			Fund			Fund			Fund			Fund
$	832		$	8,631		$	6,947		$	1,252		$	2,356		$	1,267		$	882		$	8,128
	5,837			52,792			61,158			17,557			19,531			11,942			13,100			94,911
	48,930			1,042,620			479,512			473,119			560,193			39,016			81,216			505,289
	55,599			1,104,043			547,617			491,928			582,080			52,225			95,198			608,328
	32,500			619,238			570,646			120,469			308,869			82,903			60,527			544,274
	9,559			182,129			167,837			35,432			90,844			24,383			17,802			181,425
	3,001			39,091			35,574			10,248			25,430			4,763			4,763			37,209
	3,824			72,852			67,135			14,173			36,338			9,753			7,121			72,570
	730			9,009			8,709			2,406			4,261			1,251			1,540			7,441
	9,559			182,129			167,837			35,432			90,844			24,383			17,802			181,425
	1,118			19,501			19,071			4,109			11,237			2,623			2,576			19,737
	1,048			38,674			34,389			5,526			18,958			5,397			1,674			44,289
	61,339			1,162,623			1,071,198			227,795			586,781			155,456			113,805			1,088,370
	(5,740	)		(58,580	)		(523,581	)		264,133			(4,701	)		(103,231	)		(18,607	)		(480,042	)
	(1,803,213	)		1,554,190			2,778,008			(8,632,303	)		(8,440,559	)		(3,481,970	)		(1,616,766	)		(16,661,919	)
	(1,803,213	)		1,554,190			2,778,008			(8,632,303	)		(8,440,559	)		(3,481,970	)		(1,616,766	)		(16,661,919	)
	(710,290	)		(29,169,597	)		(32,892,033	)		(731,796	)		(5,038,254	)		(2,316,967	)		(3,099,244	)		(8,942,337	)
	(710,290	)		(29,169,597	)		(32,892,033	)		(731,796	)		(5,038,254	)		(2,316,967	)		(3,099,244	)		(8,942,337	)
	(2,513,503	)		(27,615,407	)		(30,114,025	)		(9,364,099	)		(13,478,813	)		(5,798,937	)		(4,716,010	)		(25,604,256	)
$	(2,519,243	)	$	(27,673,987	)	$	(30,637,606	)	$	(9,099,966	)	$	(13,483,514	)	$	(5,902,168	)	$	(4,734,617	)	$	(26,084,298	)
$	3,548		$	25,146		$	393		$	6,871		$	20,418		$	—		$	—		$	26,883

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    47

STATEMENTS OF OPERATIONS (concluded)

							Telecom-			Trans-
	Retailing			Technology			munications			portation
	Fund			Fund			Fund			Fund
INVESTMENT INCOME
Interest	$	534		$	1,745		$	995		$	1,118
Income from Securities Lending, net		8,488			15,359			10,287			13,826
Dividends, Net of Foreign Tax Withheld		79,966			137,178			385,222			275,098
Total Income		88,988			154,282			396,504			290,042
EXPENSES
Investment Advisory Fees		51,902			135,774			114,786			130,092
Transfer Agent and Administrative Fees		15,265			39,933			33,760			38,262
Audit and Outside Service Fees		6,330			9,493			9,848			13,129
Portfolio Accounting Fees		6,106			15,973			13,504			15,305
Trustees’ Fees*		1,119			2,371			2,691			1,930
Shareholder Service Fees		15,265			39,933			33,760			38,262
Custody Fees		1,752			4,258			4,041			4,419
Miscellaneous		1,746			7,470			3,977			6,843
Total Expenses		99,485			255,205			216,367			248,242
Net Investment Income (Loss)		(10,497	)		(100,923	)		180,137			41,800
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on:
Investment Securities		(4,010,244	)		(4,303,913	)		(487,480	)		(7,373,133	)
Total Net Realized Loss		(4,010,244	)		(4,303,913	)		(487,480	)		(7,373,133	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(496,209	)		(5,449,695	)		(7,308,560	)		321,511
Net Change in Unrealized Appreciation (Depreciation)		(496,209	)		(5,449,695	)		(7,308,560	)		321,511
Net Loss on Investments		(4,506,453	)		(9,753,608	)		(7,796,040	)		(7,051,622	)
Net Decrease in Net Assets from Operations	$	(4,516,950	)	$	(9,854,531	)	$	(7,615,903	)	$	(7,009,822	)
Foreign Tax Withheld	$	—		$	8,565		$	19,750		$	2,615

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

48    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Year Ended December 31, 2008

Utilities
Fund
$	3,287
	23,727
	1,408,512
	1,435,526
	348,349
	102,456
	26,128
	40,982
	5,305
	102,456
	11,422
	20,642
	657,740
	777,786
	(4,412,357	)
	(4,412,357	)
	(8,435,432	)
	(8,435,432	)
	(12,847,789	)
$	(12,070,003	)
$	—

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    49

STATEMENTS OF CHANGES IN NET ASSETS

	Banking Fund						Basic Materials Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
FROM OPERATIONS
Net Investment Income (Loss)	$	435,757		$	231,442		$	86,889		$	227,377
Net Realized Gain (Loss) on Investments		(10,573,313	)		(236,806	)		1,152,831			4,888,395
Net Change in Unrealized Appreciation (Depreciation) on Investments		447,394			(2,663,252	)		(23,178,062	)		13,276,324
Net Increase (Decrease) in Net Assets from Operations		(9,690,162	)		(2,668,616	)		(21,938,342	)		18,392,096
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income		(31,117	)		(264,031	)		(210,622	)		(115,536	)
Realized Gain on Investments		—			—			(2,124,893	)		(6,304,782	)
Total Distributions to Shareholders		(31,117	)		(264,031	)		(2,335,515	)		(6,420,318	)
SHARE TRANSACTIONS
Proceeds from Shares Purchased		131,840,581			53,295,310			122,781,379			207,462,598
Value of Shares Purchased through Dividend Reinvestment		31,117			264,031			2,335,515			6,420,318
Cost of Shares Redeemed		(108,368,480	)		(65,788,808	)		(172,645,480	)		(188,885,815	)
Net Increase (Decrease) in Net Assets From Share Transactions		23,503,218			(12,229,467	)		(47,528,586	)		24,997,101
Net Increase (Decrease) in Net Assets		13,781,939			(15,162,114	)		(71,802,443	)		36,968,879
NET ASSETS—BEGINNING OF PERIOD		9,186,287			24,348,401			95,590,844			58,621,965
NET ASSETS—END OF PERIOD	$	22,968,226		$	9,186,287		$	23,788,401		$	95,590,844
UNDISTRIBUTED NET INVESTMENT INCOME—END OF PERIOD	$	435,757		$	31,117		$	86,889		$	210,622

50    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Biotechnology Fund						Consumer Products Fund						Electronics Fund						Energy Fund
Year			Year			Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008			2007			2008			2007			2008			2007
$	(275,736	)	$	(141,129	)	$	346,841		$	359,385		$	(5,740	)	$	(62,342	)	$	(58,580	)	$	(211,655	)
	(7,929,098	)		469,104			(5,215,418	)		3,935,767			(1,803,213	)		(51,554	)		1,554,190			9,147,271
	900,607			(231,721	)		(3,412,150	)		(1,236,597	)		(710,290	)		(389,276	)		(29,169,597	)		9,036,708
	(7,304,227	)		96,254			(8,280,727	)		3,058,555			(2,519,243	)		(503,172	)		(27,673,987	)		17,972,324
	—			—			(52,693	)		(619,303	)		—			—			—			—
	—			—			(723,429	)		(2,667,488	)		—			—			(1,382,160	)		(9,416,467	)
	—			—			(776,122	)		(3,286,791	)		—			—			(1,382,160	)		(9,416,467	)
	113,407,091			86,196,308			93,052,835			88,745,950			36,140,507			96,620,046			135,629,947			215,732,736
	—			—			776,122			3,286,791			—			—			1,382,160			9,416,467
	(84,733,296	)		(83,120,184	)		(100,786,369	)		(93,964,574	)		(34,687,381	)		(97,029,201	)		(178,570,587	)		(202,437,037	)
	28,673,795			3,076,124			(6,957,412	)		(1,931,833	)		1,453,126			(409,155	)		(41,558,480	)		22,712,166
	21,369,568			3,172,378			(16,014,261	)		(2,160,069	)		(1,066,117	)		(912,327	)		(70,614,627	)		31,268,023
	13,926,575			10,754,197			40,846,969			43,007,038			2,943,263			3,855,590			101,457,700			70,189,677
$	35,296,143		$	13,926,575		$	24,832,708		$	40,846,969		$	1,877,146		$	2,943,263		$	30,843,073		$	101,457,700
$	—		$	—		$	346,841		$	52,693		$	—		$	—		$	—		$	—

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    51

STATEMENTS OF CHANGES IN NET ASSETS (continued)

	Energy Services Fund						Financial Services Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
FROM OPERATIONS
Net Investment Income (Loss)	$	(523,581	)	$	(724,648	)	$	264,133		$	301,738
Net Realized Gain (Loss) on Investments		2,778,008			5,318,870			(8,632,303	)		(2,475,909	)
Net Change in Unrealized Appreciation (Depreciation) on Investments		(32,892,033	)		15,361,157			(731,796	)		(3,591,390	)
Net Increase (Decrease) in Net Assets from Operations		(30,637,606	)		19,955,379			(9,099,966	)		(5,765,561	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income		—			—			—			(356,724	)
Realized Gain on Investments		(2,824,110	)		(4,988,289	)		—			(1,965,631	)
Total Distributions to Shareholders		(2,824,110	)		(4,988,289	)		—			(2,322,355	)
SHARE TRANSACTIONS
Proceeds from Shares Purchased		99,290,499			208,159,435			68,548,696			79,190,928
Value of Shares Purchased through Dividend Reinvestment		2,824,110			4,988,289			—			2,322,355
Cost of Shares Redeemed		(142,972,195	)		(176,108,208	)		(68,649,518	)		(106,107,981	)
Net Increase (Decrease) in Net Assets From Share Transactions		(40,857,586	)		37,039,516			(100,822	)		(24,594,698	)
Net Increase (Decrease) in Net Assets		(74,319,302	)		52,006,606			(9,200,788	)		(32,682,614	)
NET ASSETS—BEGINNING OF PERIOD		95,916,827			43,910,221			17,507,686			50,190,300
NET ASSETS—END OF PERIOD	$	21,597,525		$	95,916,827		$	8,306,898		$	17,507,686
UNDISTRIBUTED NET INVESTMENT INCOME—END OF PERIOD	$	—		$	—		$	264,133		$	—

52    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Health Care Fund						Internet Fund						Leisure Fund						Precious Metals Fund
Year			Year			Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008			2007			2008			2007			2008			2007
$	(4,701	)	$	(10,979	)	$	(103,231	)	$	(42,463	)	$	(18,607	)	$	(35,731	)	$	(480,042	)	$	(451,283	)
	(8,440,559	)		1,289,369			(3,481,970	)		(2,185,780	)		(1,616,766	)		3,885,473			(16,661,919	)		2,831,069
	(5,038,254	)		668,394			(2,316,967	)		637,407			(3,099,244	)		(3,807,495	)		(8,942,337	)		5,749,066
	(13,483,514	)		1,946,784			(5,902,168	)		(1,590,836	)		(4,734,617	)		42,247			(26,084,298	)		8,128,852
	—			—			—			—			—			—			—			—
	(1,811,041	)		(704,340	)		—			—			(897,056	)		(2,699,704	)		—			—
	(1,811,041	)		(704,340	)		—			—			(897,056	)		(2,699,704	)		—			—
	120,262,804			92,827,139			34,864,746			88,043,421			18,425,199			44,910,850			219,496,964			241,306,780
	1,811,041			704,340			—			—			897,056			2,699,704			—			—
	(108,522,893	)		(98,077,985	)		(51,495,124	)		(70,895,883	)		(27,400,224	)		(67,341,016	)		(223,999,955	)		(220,733,106	)
	13,550,952			(4,546,506	)		(16,630,378	)		17,147,538			(8,077,969	)		(19,730,462	)		(4,502,991	)		20,573,674
	(1,743,603	)		(3,304,062	)		(22,532,546	)		15,556,702			(13,709,642	)		(22,387,919	)		(30,587,289	)		28,702,526
	37,521,195			40,825,257			24,937,257			9,380,555			15,311,055			37,698,974			91,612,565			62,910,039
$	35,777,592		$	37,521,195		$	2,404,711		$	24,937,257		$	1,601,413		$	15,311,055		$	61,025,276		$	91,612,565
$	—		$	—		$	—		$	—		$	—		$	—		$	(96,056	)	$	—

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    53

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

	Retailing Fund						Technology Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income (Loss)	$	(10,497	)	$	(142,319	)	$	(100,923	)	$	(310,013	)
Net Realized Gain (Loss) on Investments		(4,010,244	)		4,054,955			(4,303,913	)		(97,899	)
Net Change in Unrealized Appreciation (Depreciation) on Investments		(496,209	)		(4,163,479	)		(5,449,695	)		2,356,246
Net Increase (Decrease) in Net Assets from Operations		(4,516,950	)		(250,843	)		(9,854,531	)		1,948,334
Distributions to Shareholders from:
Net Investment Income		—			—			—			—
Realized Gain on Investments		(43,364	)		(2,790,535	)		(1,738,171	)		—
Total Distributions to Shareholders		(43,364	)		(2,790,535	)		(1,738,171	)		—
Share Transactions
Proceeds from Shares Purchased		43,988,119			32,143,772			51,312,291			107,559,082
Value of Shares Purchased through Dividend Reinvestment		43,364			2,790,535			1,738,171			—
Cost of Shares Redeemed		(30,501,348	)		(55,548,038	)		(67,342,145	)		(99,599,978	)
Net Increase (Decrease) in Net Assets From Share Transactions		13,530,135			(20,613,731	)		(14,291,683	)		7,959,104
Net Increase (Decrease) in Net Assets		8,969,821			(23,655,109	)		(25,884,385	)		9,907,438
Net Assets—Beginning of Period		4,651,261			28,306,370			33,122,711			23,215,273
Net Assets—End of Period	$	13,621,082		$	4,651,261		$	7,238,326		$	33,122,711
Undistributed Net Investment Income—End of Period	$	—		$	—		$	—		$	—

54    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Telecommunications Fund						Transportation Fund						Utilities Fund
Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008			2007			2008			2007
$	180,137		$	89,337		$	41,800		$	(28,394	)	$	777,786		$	903,330
	(487,480	)		829,644			(7,373,133	)		6,322,992			(4,412,357	)		6,950,046
	(7,308,560	)		1,033,472			321,511			(6,232,420	)		(8,435,432	)		(471,010	)
	(7,615,903	)		1,952,453			(7,009,822	)		62,178			(12,070,003	)		7,382,366
	(27,542	)		(61,795	)		—			—			(168,847	)		(965,717	)
	(2,568,098	)		—			(426,402	)		(4,179,577	)		(446,727	)		(6,515,265	)
	(2,595,640	)		(61,795	)		(426,402	)		(4,179,577	)		(615,574	)		(7,480,982	)
	51,078,163			127,767,300			108,853,564			67,872,597			151,253,931			183,701,392
	2,595,640			61,795			426,402			4,179,577			615,574			7,480,982
	(66,488,967	)		(131,276,188	)		(88,847,430	)		(88,970,860	)		(170,372,614	)		(197,270,858	)
	(12,815,164	)		(3,447,093	)		20,432,536			(16,918,686	)		(18,503,109	)		(6,088,484	)
	(23,026,707	)		(1,556,435	)		12,996,312			(21,036,085	)		(31,188,686	)		(6,187,100	)
	31,780,799			33,337,234			8,513,132			29,549,217			65,531,546			71,718,646
$	8,754,092		$	31,780,799		$	21,509,444		$	8,513,132		$	34,342,860		$	65,531,546
$	180,137		$	27,542		$	41,800		$	—		$	777,787		$	168,848

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    55

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.

																													RATIOS TO
																													AVERAGE NET ASSETS:
									Net Increase
						Net Realized			(Decrease)
	NET ASSET		Net			and			in Net Asset			Distributions			Distributions						Net Increase			NET ASSET								Net						Net Assets,
	VALUE,		Investment			Unrealized			Value			from Net			from Net						(Decrease) in			VALUE,		Total						Investment			Portfolio			End of
	BEGINNING		Income			Gains (Losses)			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Income			Turnover			Period (000’s
Year Ended	OF PERIOD		(Loss)†			on Investments			Operations			Income			Gains			Distributions			Value			PERIOD		Return††			Expenses			(Loss)			Rate			omitted)
Banking Fund
December 31, 2008	$	22.80	$	.48			$   (9.86	)		$   (9.38	)		$   (.02	)	$	—			$   (.02	)		$   (9.40	)	$	13.40		(41.16)	%		1.63	%		2.87	%		521	%	$	22,968
December 31, 2007		32.44		.56			(9.32	)		(8.76	)		(.88	)		—			(.88	)		(9.64	)		22.80		(27.08)	%		1.59	%		1.85	%		405	%		9,186
December 31, 2006		29.69		.44			2.89			3.33			(.58	)		—			(.58	)		2.75			32.44		11.25	%		1.59	%		1.42	%		259	%		24,348
December 31, 2005		36.29		.44			(1.52	)		(1.08	)		(.49	)		(5.03	)		(5.52	)		(6.60	)		29.69		(2.77)	%		1.58	%		1.34	%		532	%		14,580
December 31, 2004		32.50		.35			4.38			4.73			(.11	)		(.83	)		(.94	)		3.79			36.29		14.74	%		1.59	%		1.02	%		884	%		21,920
Basic Materials Fund
December 31, 2008		41.66		.06			(19.38	)		(19.32	)		(.27	)		(2.69	)		(2.96	)		(22.28	)		19.38		(45.40)	%		1.60	%		0.15	%		191	%		23,788
December 31, 2007		33.33		.11			11.21			11.32			(.05	)		(2.94	)		(2.99	)		8.33			41.66		33.97	%		1.58	%		0.28	%		244	%		95,591
December 31, 2006		27.87		.32			5.90			6.22			(.31	)		(.45	)		(.76	)		5.46			33.33		22.29	%		1.60	%		1.02	%		225	%		58,622
December 31, 2005		32.66		.12			.80			.92			(.13	)		(5.58	)		(5.71	)		(4.79	)		27.87		4.04	%		1.57	%		0.41	%		364	%		28,317
December 31, 2004		27.69		.09			5.58			5.67			(.01	)		(.69	)		(.70	)		4.97			32.66		20.83	%		1.59	%		0.30	%		725	%		46,162
Biotechnology Fund
December 31, 2008		21.57		(.26	)		(2.28	)		(2.54	)		—			—			—			(2.54	)		19.03		(11.78)	%		1.63	%		(1.25)	%		351	%		35,296
December 31, 2007		20.66		(.26	)		1.17			.91			—			—			—			.91			21.57		4.40	%		1.59	%		(1.20)	%		660	%		13,927
December 31, 2006		21.37		(.32	)		(.39	)		(.71	)		—			—			—			(.71	)		20.66		(3.32)	%		1.59	%		(1.48)	%		379	%		10,754
December 31, 2005		19.31		(.31	)		2.37			2.06			—			—			—			2.06			21.37		10.67	%		1.66	%		(1.59)	%		652	%		36,086
December 31, 2004		19.10		(.29	)		.50			.21			—			—			—			.21			19.31		1.10	%		1.59	%		(1.51)	%		1,169	%		6,588
Consumer Products Fund
December 31, 2008		37.02		.40			(9.09	)		(8.69	)		(.06	)		(.76	)		(.82	)		(9.51	)		27.51		(23.39)	%		1.61	%		1.21	%		297	%		24,833
December 31, 2007		36.55		.42			3.69			4.11			(.69	)		(2.95	)		(3.64	)		.47			37.02		11.08	%		1.59	%		1.10	%		260	%		40,847
December 31, 2006		31.63		.48			5.03			5.51			(.27	)		(.32	)		(.59	)		4.92			36.55		17.42	%		1.59	%		1.41	%		219	%		43,007
December 31, 2005		32.95		.14			(.26	)		(.12	)		(.17	)		(1.03	)		(1.20	)		(1.32	)		31.63		(0.40)	%		1.58	%		0.42	%		357	%		22,177
December 31, 2004		29.39		.11			3.78			3.89			(.01	)		(.32	)		(.33	)		3.56			32.95		13.30	%		1.59	%		0.36	%		730	%		24,433
Electronics Fund
December 31, 2008		13.67		(.02	)		(6.83	)		(6.85	)		—			—			—			(6.85	)		6.82		(50.11)	%		1.61	%		(0.15)	%		940	%		1,877
December 31, 2007		14.02		(.11	)		(.24	)		(.35	)		—			—			—			(.35	)		13.67		(2.50)	%		1.59	%		(0.73)	%		1,009	%		2,943
December 31, 2006		13.68		(.15	)		.49			.34			—			—			—			.34			14.02		2.49	%		1.59	%		(1.02)	%		477	%		3,856
December 31, 2005		13.17		(.16	)		.67			.51			—			—			—			.51			13.68		3.87	%		1.62	%		(1.24)	%		1,136	%		8,306
December 31, 2004		16.88		(.20	)		(3.51	)		(3.71	)		—			—			—			(3.71	)		13.17		(21.98)	%		1.59	%		(1.34)	%		1,325	%		12,289
Energy Fund
December 31, 2008		39.83		(.03	)		(18.29	)		(18.32	)		—			(1.02	)		(1.02	)		(19.34	)		20.49		(46.03)	%		1.60	%		(0.08)	%		154	%		30,843
December 31, 2007		33.14		(.11	)		11.01			10.90			—			(4.21	)		(4.21	)		6.69			39.83		33.22	%		1.58	%		(0.27)	%		217	%		101,458
December 31, 2006		39.20		(.13	)		5.28			5.15			—			(11.21	)		(11.21	)		(6.06	)		33.14		11.93	%		1.59	%		(0.31)	%		146	%		70,190
December 31, 2005		29.68		—§			11.44			11.44			(.01	)		(1.91	)		(1.92	)		9.52			39.20		38.54	%		1.59	%		(0.01)	%		351	%		83,437
December 31, 2004		22.45		.01			7.23			7.24			(—	)§		(.01	)		(.01	)		7.23			29.68		32.27	%		1.58	%		0.04	%		542	%		60,501
Energy Services Fund
December 31, 2008		38.67		(.28	)		(21.79	)		(22.07	)		—			(2.42	)		(2.42	)		(24.49	)		14.18		(57.60)	%		1.60	%		(0.78)	%		122	%		21,598
December 31, 2007		29.79		(.34	)		11.37			11.03			—			(2.15	)		(2.15	)		8.88			38.67		37.10	%		1.58	%		(0.91)	%		193	%		95,917
December 31, 2006		30.92		(.37	)		4.01			3.64			—			(4.77	)		(4.77	)		(1.13	)		29.79		10.98	%		1.59	%		(1.08)	%		184	%		43,910
December 31, 2005		20.85		(.30	)		10.37			10.07			—			—			—			10.07			30.92		48.30	%		1.61	%		(1.17)	%		317	%		79,722
December 31, 2004		15.59		(.22	)		5.48			5.26			—			—			—			5.26			20.85		33.74	%		1.58	%		(1.19)	%		808	%		29,316

56    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

FINANCIAL HIGHLIGHTS (continued)

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.

																													RATIOS TO
																													AVERAGE NET ASSETS:
									Net Increase
						Net Realized			(Decrease)
	NET ASSET		Net			and			in Net Asset			Distributions			Distributions						Net Increase			NET ASSET								Net						Net Assets,
	VALUE,		Investment			Unrealized			Value			from Net			from Net						(Decrease) in			VALUE,		Total						Investment			Portfolio			End of
	BEGINNING		Income			Gains (Losses)			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Income			Turnover			Period (000’s
Year Ended	OF PERIOD		(Loss)†			on Investments			Operations			Income			Gains			Distributions			Value			PERIOD		Return††			Expenses			(Loss)			Rate			omitted)
Financial Services Fund
December 31, 2008		$   21.96		$   .32			$   (10.87	)		$   (10.55	)		$   —			$   —			$   —			$ (10.55	)		$11.41		(48.04)	%		1.61	%		1.87	%		422	%		$  8,307
December 31, 2007		32.18		.28			(6.23	)		(5.95	)		(.66	)		(3.61	)		(4.27	)		(10.22	)		21.96		(18.80)	%		1.59	%		0.90	%		525	%		17,508
December 31, 2006		29.10		.26			4.59			4.85			(.39	)		(1.38	)		(1.77	)		3.08			32.18		16.73	%		1.59	%		0.83	%		330	%		50,190
December 31, 2005		30.38		.28			.67			.95			(.25	)		(1.98	)		(2.23	)		(1.28	)		29.10		3.38	%		1.59	%		0.94	%		549	%		36,839
December 31, 2004		26.00		.23			4.21			4.44			(.06	)		—			(.06	)		4.38			30.38		17.12	%		1.59	%		0.84	%		762	%		45,180
Health Care Fund
December 31, 2008		29.61		(--)§			(7.40	)		(7.40	)		—			(.99	)		(.99	)		(8.39	)		21.22		(24.86)	%		1.62	%		(0.01)	%		266	%		35,778
December 31, 2007		28.41		(.01	)		1.73			1.72			—			(.52	)		(.52	)		1.20			29.61		6.02	%		1.59	%		(0.02)	%		424	%		37,521
December 31, 2006		28.17		(.15	)		1.59			1.44			—			(1.20	)		(1.20	)		.24			28.41		5.11	%		1.59	%		(0.52)	%		251	%		40,825
December 31, 2005		25.46		(.16	)		2.87			2.71			—			—			—			2.71			28.17		10.64	%		1.60	%		(0.62)	%		330	%		51,692
December 31, 2004		24.28		(.16	)		1.65			1.49			—			(.31	)		(.31	)		1.18			25.46		6.22	%		1.59	%		(0.67)	%		629	%		30,435
Internet Fund
December 31, 2008		17.85		(.16	)		(7.85	)		(8.01	)		—			—			—			(8.01	)		9.84		(44.87)	%		1.60	%		(1.07)	%		341	%		2,405
December 31, 2007		16.17		(.05	)		1.73			1.68			—			—			—			1.68			17.85		10.39	%		1.54	%		(0.29)	%		432	%		24,937
December 31, 2006		14.74		(.21	)		1.64			1.43			—			—			—			1.43			16.17		9.70	%		1.58	%		(1.33)	%		420	%		9,381
December 31, 2005		17.01		(.21	)		(.13	)		(.34	)		—			(1.93	)		(1.93	)		(2.27	)		14.74		(1.38)	%		1.61	%		(1.36)	%		676	%		20,959
December 31, 2004		14.68		(.23	)		2.56			2.33			—			—			—			2.33			17.01		15.87	%		1.58	%		(1.49)	%		693	%		36,922
Leisure Fund
December 31, 2008†††		636.60		(1.07	)		(347.66	)		(348.73	)		—			(257.40	)		(257.40	)		(606.13	)		30.47		(49.09)	%		1.61	%		(0.26)	%		255	%		1,601
December 31, 2007†††		785.70		(1.20	)		(15.30	)		(16.50	)		—			(132.60	)		(132.60	)		(149.10	)		636.60		(2.54)	%		1.59	%		(0.14)	%		171	%		15,311
December 31, 2006†††		658.80		(.60	)		155.10			154.50			—			(27.60	)		(27.60	)		126.90			785.70		23.47	%		1.60	%		(0.07)	%		221	%		37,699
December 31, 2005†††		761.70		(5.70	)		(30.90	)		(36.60	)		—			(66.30	)		(66.30	)		(102.90	)		658.80		(4.87)	%		1.56	%		(0.79)	%		369	%		13,961
December 31, 2004†††		624.00		(5.10	)		152.10			147.00			—			(9.30	)		(9.30	)		137.70			761.70		23.86	%		1.58	%		(0.74)	%		663	%		51,755
Precious Metals Fund
December 31, 2008		15.04		(.09	)		(5.71	)		(5.80	)		—			—			—			(5.80	)		9.24		(38.56)	%		1.50	%		(0.66)	%		228	%		61,025
December 31, 2007		12.58		(.10	)		2.56			2.46			—			—			—			2.46			15.04		19.55	%		1.45	%		(0.71)	%		268	%		91,613
December 31, 2006		10.36		(.03	)		2.25			2.22			—			—			—			2.22			12.58		21.43	%		1.49	%		(0.26)	%		228	%		62,910
December 31, 2005		8.57		(.02	)		1.81			1.79			—			—			—			1.79			10.36		20.89	%		1.57	%		(0.24)	%		308	%		68,241
December 31, 2004		9.99		(.05	)		(1.37	)		(1.42	)		—			—			—			(1.42	)		8.57		(14.21)	%		1.46	%		(0.54)	%		519	%		35,043
Retailing Fund
December 31, 2008		11.27		(.02	)		(3.70	)		(3.72	)		—			(.02	)		(.02	)		(3.74	)		7.53		(32.95)	%		1.62	%		(0.17)	%		460	%		13,621
December 31, 2007		29.78		(.24	)		(2.95	)		(3.19	)		—			(15.32	)		(15.32	)		(18.51	)		11.27		(12.60)	%		1.60	%		(0.81)	%		182	%		4,651
December 31, 2006		27.85		(.11	)		2.92			2.81			—			(.88	)		(.88	)		1.93			29.78		10.08	%		1.59	%		(0.37)	%		227	%		28,306
December 31, 2005		26.65		(.25	)		1.70			1.45			—			(.25	)		(.25	)		1.20			27.85		5.48	%		1.58	%		(0.90)	%		421	%		17,616
December 31, 2004		25.99		(.22	)		2.62			2.40			—			(1.74	)		(1.74	)		.66			26.65		10.06	%		1.58	%		(0.83)	%		609	%		20,800
Technology Fund
December 31, 2008		16.27		(.08	)		(7.39	)		(7.47	)		—			(1.75	)		(1.75	)		(9.22	)		7.05		(45.41)	%		1.60	%		(0.63)	%		277	%		7,238
December 31, 2007		14.74		(.15	)		1.68			1.53			—			—			—			1.53			16.27		10.38	%		1.56	%		(0.91)	%		584	%		33,123
December 31, 2006		13.92		(.16	)		.98			.82			—			—			—			.82			14.74		5.89	%		1.59	%		(1.09)	%		403	%		23,215
December 31, 2005		13.50		(.16	)		.58			.42			—			—			—			.42			13.92		3.11	%		1.62	%		(1.21)	%		541	%		19,145
December 31, 2004		14.88		(.05	)		.03			(.02	)		—			(1.36	)		(1.36	)		(1.38	)		13.50		1.15	%		1.58	%		(0.36)	%		767	%		19,919

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    57

FINANCIAL HIGHLIGHTS (concluded)

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.

																													RATIOS TO
																													AVERAGE NET ASSETS:
									Net Increase
						Net Realized			(Decrease)
	NET ASSET		Net			and			in Net Asset			Distributions			Distributions						Net Increase			NET ASSET								Net						Net Assets,
	VALUE,		Investment			Unrealized			Value			from Net			from Net						(Decrease) in			VALUE,		Total						Investment			Portfolio			End of
	BEGINNING		Income			Gains (Losses)			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Income			Turnover			Period (000’s
Year Ended	OF PERIOD		(Loss)†			on Investments			Operations			Income			Gains			Distributions			Value			PERIOD		Return††			Expenses			(Loss)			Rate			omitted)
Telecommunications Fund
December 31, 2008		$23.89		$ .24			$ (11.49	)		$ (11.25	)		$ (.05	)		$  (4.65	)		$  (4.70	)		$  (15.95	)		$  7.94		(45.34)	%		1.61	%		1.34	%		341	%		$  8,754
December 31, 2007		21.91		.05			1.97			2.02			(.04	)		—			(.04	)		1.98			23.89		9.23	%		1.58	%		0.20	%		295	%		31,781
December 31, 2006		18.81		.15			3.52			3.67			(.29	)		(.28	)		(.57	)		3.10			21.91		19.51	%		1.59	%		0.72	%		264	%		33,337
December 31, 2005		20.53		.19			.06			.25			—			(1.97	)		(1.97	)		(1.72	)		18.81		1.16	%		1.60	%		0.98	%		362	%		16,898
December 31, 2004		18.22		(.02	)		2.33			2.31			—			—			—			2.31			20.53		12.68	%		1.58	%		(0.08)	%		809	%		30,191
Transportation Fund
December 31, 2008		14.85		.04			(3.80	)		(3.76	)		—			(.18	)		(.18	)		(3.94	)		10.91		(25.26)	%		1.62	%		0.27	%		544	%		21,509
December 31, 2007		35.05		(.04	)		(2.24	)		(2.28	)		—			(17.92	)		(17.92	)		(20.20	)		14.85		(8.75)	%		1.60	%		(0.12)	%		284	%		8,513
December 31, 2006		32.64		(.24	)		2.65			2.41			—			—			—			2.41			35.05		7.38	%		1.59	%		(0.68)	%		249	%		29,549
December 31, 2005		31.45		(.19	)		2.64			2.45			—			(1.26	)		(1.26	)		1.19			32.64		8.48	%		1.58	%		(0.63)	%		258	%		31,378
December 31, 2004		25.97		(.20	)		6.09			5.89			—			(.41	)		(.41	)		5.48			31.45		22.99	%		1.57	%		(0.71)	%		473	%		47,333
Utilities Fund
December 31, 2008		22.29		.37			(6.97	)		(6.60	)		(.08	)		(.20	)		(.28	)		(6.88	)		15.41		(29.57)	%		1.61	%		1.90	%		293	%		34,343
December 31, 2007		22.38		.32			2.59			2.91			(.39	)		(2.61	)		(3.00	)		(.09	)		22.29		12.86	%		1.58	%		1.32	%		244	%		65,532
December 31, 2006		19.09		.36			3.64			4.00			(.49	)		(.22	)		(.71	)		3.29			22.38		20.96	%		1.59	%		1.73	%		169	%		71,719
December 31, 2005		17.34		.34			1.50			1.84			(.09	)		—			(.09	)		1.75			19.09		10.56	%		1.60	%		1.80	%		342	%		39,943
December 31, 2004		14.96		.33			2.24			2.57			(.19	)		—			(.19	)		2.38			17.34		17.31	%		1.57	%		2.06	%		904	%		21,902

†	Calculated using the average daily shares outstanding for the year.
††	Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
†††	Per share amounts for the period December 31, 2003 through December 7, 2008 have been restated to reflect a 1:30 reverse stock split effective December 8, 2008 — See Note 11.
§	Less than $.01 per share.

58    |    THE RYDEX 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, 2008, 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.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, Inc. (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor 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. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.

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. 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.

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 Rydex Investments 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.

Rydex Investments 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. Rydex Investments 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.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    59

NOTES TO FINANCIAL STATEMENTS (continued)

Rydex Investments 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 Distributor and other firms that provide shareholder services (“Service Providers”) may receive compensation. The Trust will pay fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets. The Distributor, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

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 2005-2008), 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 includes net operating losses not utilized during the current period and capital loss carryforward expired. 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 tax character of distributions paid during the year ended December 31, 2008, was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Banking Fund	$	31,117	$	—	$	31,117
Basic Materials Fund		1,786,119		549,396		2,335,515
Biotechnology Fund		—		—		—
Consumer Products Fund		208,803		567,319		776,122
Electronics Fund		—		—		—
Energy Fund		1,012,358		369,802		1,382,160
Energy Services Fund		2,132,477		691,633		2,824,110
Financial Services Fund		—		—		—
Health Care Fund		777,941		1,033,100		1,811,041
Internet Fund		—		—		—
Leisure Fund		117,360		779,696		897,056
Precious Metals Fund		—		—		—
Retailing Fund		—		43,364		43,364
Technology Fund		1,726,089		12,082		1,738,171
Telecommunications Fund		1,453,922		1,141,718		2,595,640
Transportation Fund		—		426,402		426,402
Utilities Fund		441,479		174,095		615,574

60    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the year ended December 31, 2007, was as follows:

	Ordinary		Long-Term		Return of			Total
Fund	Income		Capital Gain		Capital			Distributions
Banking Fund		$    264,031	$	—	$	—			$    264,031
Basic Materials Fund		3,917,113		2,503,205		—			6,420,318
Biotechnology Fund		—		—		—			—
Consumer Products Fund		2,278,448		1,008,343		—			3,286,791
Electronics Fund		—		—		—			—
Energy Fund		218,328		9,198,139		—			9,416,467
Energy Services Fund		124,501		4,863,788		—			4,988,289
Financial Services Fund		1,354,485		472,030		495,840			2,322,355
Health Care Fund		669,151		35,189		—			704,340
Internet Fund		—		—		—			—
Leisure Fund		2,084,487		615,217		—			2,699,704
Precious Metals Fund		—		—		—			—
Retailing Fund		909,107		1,881,428		—			2,790,535
Technology Fund		—		—		—			—
Telecommunications Fund		61,795		—		—			61,795
Transportation Fund		—		4,179,577		—			4,179,577
Utilities Fund		4,017,476		3,463,506		—			7,480,982
The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows:
	Undistributed		Undistributed
	Ordinary		Long-Term		Net Unrealized			Capital Loss
Fund	Income		Capital Gain		Depreciation			Carryforward
Banking Fund		$435,757	$	—		$(10,197,338	)		$  (1,851,472	)1
Basic Materials Fund		86,889		1,278,910		(5,695,600	)		—
Biotechnology Fund		—		—		(6,597,936	)		(5,234,603	)1
Consumer Products Fund		346,841		—		(3,602,238	)		(1,227,582	)1
Electronics Fund		—		—		(1,960,749	)		(10,645,204	)1
Energy Fund		576		3,006,826		(2,434,632	)		—
Energy Services Fund		—		2,202,081		(4,689,041	)		—
Financial Services Fund		264,133		—		(8,374,741	)		(3,506,588	)1
Health Care Fund		—		—		(8,440,868	)		(2,056,303	)1
Internet Fund		—		—		(673,091	)		(6,217,639	)1
Leisure Fund		—		—		(581,827	)		(2,536,674	)1
Precious Metals Fund		—		—		(7,447,403	)		(1,058,873	)1
Retailing Fund		—		—		(3,590,729	)		(447,828	)1
Technology Fund		—		—		(3,966,217	)		(4,726,792	)1
Telecommunications Fund		180,137		—		(3,386,822	)		(1,196,488	)1
Transportation Fund		41,800		—		(6,093,738	)		(593,525	)1
Utilities Fund		777,787		—		(1,751,095	)		(897,305	)1

Capital Loss Carryforward amounts may be limited due to Treasury Regulations.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    61

NOTES TO FINANCIAL STATEMENTS (continued)

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.

¹ A summary of the expiration of the afore mentioned Capital Loss Carryforward is as follows:

																					Total
	Expires in			Expires in		Expires in			Expires in			Expires in			Expires in			Expires in			Capital Loss
Fund	2010			2011		2012			2013			2014			2015			2016			Carryforward
Banking Fund	$	—		$	—	$	—		$	(470,556	)	$	—		$	—		$	(1,380,916	)	$	(1,851,472	)
Biotechnology Fund		(608,485	)		—		(1,880,980	)		(739,559	)		(1,048,743	)		(717,792	)		(239,044	)		(5,234,603	)
Consumer Products Fund		—			—		—			—			—			—			(1,227,582	)		(1,227,582	)
Electronics Fund		(324,070	)		—		(549,313	)		(1,309,130	)		(6,193,088	)		(1,411,864	)		(857,739	)		(10,645,204	)
Financial Services Fund		—			—		—			—			—			(1,122,489	)		(2,384,099	)		(3,506,588	)
Health Care Fund		—			—		—			—			—			—			(2,056,303	)		(2,056,303	)
Internet Fund		—			—		—			(384,202	)		—			—			(5,833,437	)		(6,217,639	)
Leisure Fund		—			—		—			—			—			—			(2,536,674	)		(2,536,674	)
Precious Metals Fund		—			—		—			(935,222	)		—			—			(123,651	)		(1,058,873	)
Retailing Fund		—			—		—			—			—			—			(447,828	)		(447,828	)
Technology Fund		—			—		—			—			—			—			(4,726,792	)		(4,726,792	)
Telecommunications Fund		—			—		—			—			—			—			(1,196,488	)		(1,196,488	)
Transportation Fund		—			—		—			—			—			—			(593,525	)		(593,525	)
Utilities Fund		—			—		—			—			—			—			(897,305	)		(897,305	)

At December 31, 2008, 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			Loss
Banking Fund	$	33,054,969	$	—	$	(10,197,338	)	$	(10,197,338	)
Basic Materials Fund		29,505,999		—		(5,695,600	)		(5,695,600	)
Biotechnology Fund		41,766,082		—		(6,597,936	)		(6,597,936	)
Consumer Products Fund		28,431,069		—		(3,602,238	)		(3,602,238	)
Electronics Fund		3,826,132		—		(1,960,749	)		(1,960,749	)
Energy Fund		32,894,866		2,172,601		(4,607,233	)		(2,434,632	)
Energy Services Fund		26,250,898		1,026,047		(5,715,088	)		(4,689,041	)
Financial Services Fund		16,653,842		—		(8,374,741	)		(8,374,741	)
Health Care Fund		44,322,251		—		(8,440,868	)		(8,440,868	)
Internet Fund		3,067,641		—		(673,091	)		(673,091	)
Leisure Fund		2,162,244		—		(581,827	)		(581,827	)
Precious Metals Fund		68,617,858		—		(7,447,403	)		(7,447,403	)
Retailing Fund		17,193,345		—		(3,590,729	)		(3,590,729	)
Technology Fund		11,239,018		—		(3,966,217	)		(3,966,217	)
Telecommunications Fund		12,166,578		—		(3,386,822	)		(3,386,822	)
Transportation Fund		27,624,284		—		(6,093,738	)		(6,093,738	)
Utilities Fund		36,090,452		—		(1,751,095	)		(1,751,095	)

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.

The repurchase agreements executed by the joint account and outstanding at December 31, 2008, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.03% due 01/02/09		$49,841,465		$49,841,465		$49,841,548
					$49,841,465		$49,841,548

62    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2008, 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		05/15/18		3.875	%	$	43,815,000		$50,842,661
									$50,842,661

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.

5.    Fair Value Measurement

Effective January 1, 2008, the Funds adopted Statement of Financial Accounting Standard No. 157 (“FAS 157”), Fair Value Measurement, which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications.

Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels:

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, 2008:

	Level 1		Level 1		Level 2		Level 2		Level 3		Level 3
	Investments		Other Financial		Investments		Other Financial		Investments		Other Financial
Fund	In Securities		Instruments		In Securities		Instruments		In Securities		Instruments		Total
Assets
Banking Fund	$	22,857,631	$	—	$	—	$	—	$	—	$	—	$	22,857,631
Basic Materials Fund		23,810,399		—		—		—		—		—		23,810,399
Biotechnology Fund		35,168,146		—		—		—		—		—		35,168,146
Consumer Products Fund		24,828,831		—		—		—		—		—		24,828,831
Electronics Fund		1,865,383		—		—		—		—		—		1,865,383
Energy Fund		30,460,234		—		—		—		—		—		30,460,234
Energy Services Fund		21,561,857		—		—		—		—		—		21,561,857
Financial Services Fund		8,279,101		—		—		—		—		—		8,279,101
Health Care Fund		35,881,383		—		—		—		—		—		35,881,383
Internet Fund		2,394,550		—		—		—		—		—		2,394,550
Leisure Fund		1,580,417		—		—		—		—		—		1,580,417
Precious Metals Fund		61,170,455		—		—		—		—		—		61,170,455
Retailing Fund		13,602,616		—		—		—		—		—		13,602,616
Technology Fund		7,272,801		—		—		—		—		—		7,272,801
Telecommunications Fund		8,779,756		—		—		—		—		—		8,779,756
Transportation Fund		21,530,546		—		—		—		—		—		21,530,546
Utilities Fund		34,339,357		—		—		—		—		—		34,339,357

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    63

NOTES TO FINANCIAL STATEMENTS (continued)

6.    Securities Transactions

For the year ended December 31, 2008, the cost of purchases and proceeds from 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	$	103,183,132	$	111,629,914	$	103,780,919	$	84,994,168	$	33,174,483	$	113,198,201	$	82,666,911
Sales	$	79,792,704	$	161,385,018	$	76,013,256	$	92,658,008	$	31,775,613	$	156,342,263	$	126,824,819
	Financial		Health						Precious
	Services		Care		Internet		Leisure		Metals		Retailing		Technology
	Fund		Fund		Fund		Fund		Fund		Fund		Fund
Purchases	$	60,353,534	$	107,446,921	$	35,091,628	$	18,771,225	$	170,536,681	$	41,175,280	$	45,994,945
Sales	$	60,306,727	$	96,171,096	$	51,756,757	$	27,734,071	$	176,220,296	$	27,917,102	$	62,088,019
	Telecommu-		Transpor-
	nications		tation		Utilities
	Fund		Fund		Fund
Purchases	$	48,198,353	$	102,265,807	$	119,829,361
Sales	$	63,379,477	$	82,536,750	$	138,462,494

64    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

7.    Share Transactions

The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:

					Purchased through										Net Shares
	Shares Purchased				Dividend Reinvestment				Shares Redeemed						Purchased (Redeemed)
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	December 31,		December 31,		December 31,		December 31,		December 31,			December 31,			December 31,			December 31,
	2008		2007		2008		2007		2008			2007			2008			2007
Banking Fund		7,674,987		1,845,752		2,286		11,231		(6,366,272	)		(2,204,564	)		1,311,001			(347,581	)
Basic Materials Fund		3,369,025		5,190,655		137,141		154,149		(4,573,538	)		(4,808,890	)		(1,067,372	)		535,914
Biotechnology Fund		5,366,301		3,990,446		—		—		(4,157,122	)		(3,865,363	)		1,209,179			125,083
Consumer Products Fund		2,837,579		2,294,742		29,299		87,391		(3,067,404	)		(2,455,664	)		(200,526	)		(73,531	)
Electronics Fund		3,207,474		6,529,568		—		—		(3,147,576	)		(6,589,223	)		59,898			(59,655	)
Energy Fund		3,864,204		5,614,940		66,642		242,255		(4,973,246	)		(5,427,952	)		(1,042,400	)		429,243
Energy Services Fund		2,869,511		5,771,123		182,083		130,277		(4,008,447	)		(4,895,054	)		(956,853	)		1,006,346
Financial Services Fund		3,936,662		2,645,597		—		103,354		(4,005,875	)		(3,511,041	)		(69,213	)		(762,090	)
Health Care Fund		4,549,619		3,090,996		88,430		23,261		(4,219,410	)		(3,283,734	)		418,639			(169,477	)
Internet Fund		2,275,129		4,841,463		—		—		(3,427,511	)		(4,024,787	)		(1,152,382	)		816,676
Leisure Fund		32,634		56,479		33,598		4,132		(88,526	)		(84,553	)		(22,294	)		(23,942	)
Precious Metals Fund		18,236,924		17,782,601		—		—		(17,722,874	)		(16,689,984	)		514,050			1,092,617
Retailing Fund		4,688,769		1,126,720		6,405		238,507		(3,297,878	)		(1,903,105	)		1,397,296			(537,878	)
Technology Fund		3,653,213		6,680,204		258,272		—		(4,920,488	)		(6,219,761	)		(1,009,003	)		460,443
Telecommunications Fund		3,199,295		5,213,399		356,055		2,537		(3,783,032	)		(5,406,876	)		(227,682	)		(190,940	)
Transportation Fund		7,764,155		1,928,033		40,494		269,129		(6,406,286	)		(2,466,872	)		1,398,363			(269,710	)
Utilities Fund		8,051,669		7,620,878		41,093		331,751		(8,803,682	)		(8,217,534	)		(710,920	)		(264,905	)

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    65

NOTES TO FINANCIAL STATEMENTS (concluded)

8.    Portfolio Securities Loaned

During the year ended December 31, 2008, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the statement of operations is shown net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of December 31, 2008, the Funds had ceased participation in securities lending.

9.    Change in Independent Registered Public Accounting Firm

The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).

The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.

10.   New Accounting Pronouncements

In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how entities use derivatives, how they are accounted for and how they affect the financial position and operations of that entity. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management is evaluating the impact of FAS 161 on its current disclosures.

11.   Leisure Fund 1-for-30 Reverse Split

Effective December 8, 2008, the Leisure Fund underwent a 1-for-30 reverse stock split. The effect of this transaction was to divide the number of outstanding shares of the Fund by thirty, resulting in a corresponding increase in the net asset value per share. There were no changes in the aggregate market values of the outstanding shares as a result of this transaction.

66    |    THE RYDEX 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 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”), including the schedules of

investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year 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 statements of changes in net assets for the year ended December 31, 2007 and 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 statements and 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, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, 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 each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 26, 2009

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    67

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		100.00	%
Basic Materials Fund		20.09	%
Consumer Products Fund		37.44	%
Energy Fund		66.29	%
Energy Services Fund		20.18	%
Health Care Fund		68.37	%
Leisure Fund		16.69	%
Technology Fund		7.29	%
Telecommunications Fund		26.15	%
Utilities Fund		43.01	%

The Funds’ distributions to shareholders included:

			Consumer
	Basic Materials		Products		Energy		Energy Services
	Fund		Fund		Fund		Fund
From long-term capital gains, subject to the 15% rate gains category:		$   549,396		$    567,319		$ 369,802		$ 691,633
	Health Care		Leisure		Retailing		Technology
	Fund		Fund		Fund		Fund
From long-term capital gains, subject to the 15% rate gains category:		$1,033,100		$   779,696		$   43,364		$   12,082
			Telecommunications		Transportation		Utilities
			Fund		Fund		Fund
From long-term capital gains, subject to the 15% rate gains category:				$1,141,718		$426,402		$174,095

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 1-800-820-0888. 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 1-800-820-0888. 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 1-800-820-0888.

68    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, 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 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

TRUSTEES AND OFFICERS

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Carl G. Verboncoeur*	Rydex Series Funds – 2004	160
Trustee, President (1952)	Rydex Variable Trust – 2004
	Rydex Dynamic Funds – 2004
	Rydex ETF Trust – 2004

Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to present) Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present)

Michael P. Byrum*	Rydex Series Funds – 2005	160
Trustee, Vice President	Rydex Variable Trust – 2005
(1970)	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); 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); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)

INDEPENDENT TRUSTEES

Name, Position and	Length of Service As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
John O. Demaret	Rydex Series Funds – 1997	151
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	151
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	151
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	151
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)

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    69

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Thomas F. Lydon, Jr.	Rydex Series Funds – 2005	151
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	151
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	151
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Owner, Arrow Limousine

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Nick Bonos* Vice President and Treasurer (1963)	Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present); 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 (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	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, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, 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.

70    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVASECF-ANN-2-1208x1209

DECEMBER 31, 2008

RYDEX VARIABLE TRUST

CLS ADVISORONE FUNDS ANNUAL REPORT

AMERIGO FUND

CLERMONT FUND

BEROLINA FUND

GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888.

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, Inc.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS   2

ABOUT SHAREHOLDERS’ FUND EXPENSES   3

PERFORMANCE REPORTS AND FUND PROFILES   6

SCHEDULES OF INVESTMENTS   12

STATEMENTS OF ASSETS AND LIABILITIES   18

STATEMENTS OF OPERATIONS   19

STATEMENTS OF CHANGES IN NET ASSETS   20

FINANCIAL HIGHLIGHTS   22

NOTES TO FINANCIAL STATEMENTS   23

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   29

OTHER INFORMATION   30

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   31

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    1

1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.

Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.

Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.

It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases); home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.

Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500^® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.

Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP.

The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.

In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.

We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

2    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

2

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, 2008 and ending December 31, 2008.

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.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    3

3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

					Beginning		Ending		Expenses
	Expense				Account Value		Account Value		Paid During
	Ratio			†	June 30, 2008		December 31, 2008		Period		*
Table 1. Based on actual Fund return
Amerigo Fund		1.70	%		$	1,000.00	$	618.40	$	6.92
Clermont Fund		1.70	%			1,000.00		757.50		7.51
Berolina Fund		1.70	%			1,000.00		619.50		6.92
Table 2. Based on hypothetical 5% return (before expenses)
Amerigo Fund		1.70	%			1,000.00		1,016.59		8.62
Clermont Fund		1.70	%			1,000.00		1,016.59		8.62
Berolina Fund		1.70	%			1,000.00		1,016.59		8.62

*	Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies.
†	Annualized and excludes expenses of the underlying funds in which the Funds invest.

4    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

4

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THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    5

5

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)

AMERIGO FUND

OBJECTIVE: Amerigo seeks capital appreciation and long-term growth of capital without regard to current income.

Inception: July 1, 2003

Over the past 12 months, Rydex Amerigo Fund declined 43.09%. Over this same period, Amerigo Fund’s performance benchmark, the S&P 500 Index, had a total return of -37.00%. The critical event that drove investors to be extremely risk averse was Lehman Brothers Holdings, Inc. being “allowed” to file for bankruptcy on September 14. That set off a chain of events that caused a panic sell-off in the prices of equities and commodities as well as corporate bonds. Because of the indiscriminate selling, it became very difficult for investors to value securities. As a result, valuations converged, prices fell and diversification was of little benefit.

As a result of the investor panic, “perceived risk” appears to have exceeded actual risk in the pricing of several asset classes. Specifically, we witnessed:

• The highest junk bond yields ever.

• Investment-grade corporate bonds that were selling at the highest spread over U.S. Treasuries since 1933.

• Commodity prices nearly 50% less expensive than they were six months ago.

• Real estate suffering its biggest cumulative price decline on record.

• Stock dividend yields that were above bond yields for the first time in 50 years.

These rapid valuation changes caused us to reposition Amerigo Fund’s portfolio to seek to take advantage of these newly created opportunities.

During this reporting period, the major investment themes to Amerigo Fund’s trades were as follows:

• While Amerigo is an equity fund, the cheapness of corporate bond valuations moved us to add investment-grade and high-yield bonds to Amerigo’s portfolio in October and November. Given the levels at which these bonds were trading, we were of the opinion that corporate bonds might produce equity-like returns.

• Positions in emerging and developed international securities were all trimmed as the U.S. dollar strengthened and commodity prices weakened. Proceeds were primarily added to corporate and high-yield bonds.

• At the sector level, positions in industrials and energy were reduced.

While the investment environment remains challenging, the sharp decline we witnessed in the markets significantly discounts those risks. At this point in time, we do not need to see improvement in the economy; we merely need to see some signs of stabilization. We have begun to see early signs of that stabilization taking place in the bond market.

Sector Diversification (Market Exposure as % of Net Assets)

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

Ten Largest Holdings (% of Total Net Assets)
iShares Russell 1000
Growth Index Fund	8.4	%
iShares MSCI Emerging Markets
Index Fund	6.9	%
PowerShares QQQ	6.7	%
iShares S&P Latin America 40
Index Fund	6.5	%
Vanguard Mid-Cap ETF	4.6	%
iShares Russell Midcap Growth
Index Fund	4.6	%
SPDR Trust, Series 1	4.0	%
DIAMONDS Trust, Series I	3.5	%
SPDR S&P Biotech ETF	3.4	%
iShares iBoxx $ Investment Grade
Corporate Bond Fund	3.2	%
Top Ten Total	51.8	%

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

6    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

6

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

Cumulative Fund Performance:

July 1, 2003 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/01/03)
AMERIGO FUND		-43.09	%		-2.45	%		0.44	%
S&P500 INDEX		-37.00	%		-2.19	%		0.40	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index 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 VARIABLE TRUST ANNUAL REPORT    |    7

7

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)

CLERMONT FUND

OBJECTIVE: The investment objective of Clermont is a combination of current income and growth of capital.

Inception: July 1, 2003

Rydex Clermont Fund, a balanced fund, declined 30.07% for the 12 months ending December 31, 2008, as compared to its benchmark which had a total return of -14.79%. The blended index used for this comparison is comprised of 45% of the total return of the S&P 500 Index and 55% of the return of the Barclays Capital Credit Index. The critical event that drove investors to be extremely risk-averse was Lehman Brothers Holdings, Inc. being “allowed” to file for bankruptcy on September 14. That set off a chain of events that caused a panic sell-off in the prices of equities and commodities as well

as corporate bonds. As a result, Clermont Fund’s significant corporate bond holdings failed to provide the level of diversification normally generated by this fixed-income asset class.

During this period of time, Clermont Fund took advantage of the distressed level at which corporate bonds were trading by increasing its allocation to bonds from approximately 41% on June 30 to 57% during the fourth quarter. At current valuation levels, we continue to believe that corporate bonds have the potential to offer equity-like returns with less volatility.

Within Clermont Fund’s equity allocation, positions in emerging market equities and industrials were reduced. Both have a high correlation to global economic activity. Until economic activity around the world stabilizes, we elected to reduce these positions.

Sector Diversification (Market Exposure as % of Net Assets)

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

Ten Largest Holdings (% of Total Net Assets)
iShares Barclays Aggregate Bond Fund	12.4	%
Vanguard Total Bond Market ETF	10.3	%
iShares iBoxx $ Investment Grade
Corporate Bond Fund	9.8	%
iShares iBoxx $ High Yield
Corporate Bond Fund	9.0	%
Vanguard Short-Term Bond ETF	6.5	%
SPDR Barclays High Yield Bond ETF	4.3	%
iShares S&P Latin America 40 Index Fund	3.6	%
iShares Russell 1000 Growth Index Fund	3.2	%
SPDR Trust, Series 1	3.0	%
PowerShares QQQ	2.6	%
Top Ten Total	64.7	%

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

8    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

8

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)

Cumulative Fund Performance:
July 1, 2003 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(07/01/03)
CLERMONT FUND		-30.07	%		-2.40	%		-0.77	%
S&P500 INDEX		-37.00	%		-2.19	%		0.40	%
SYNTHETIC BALANCED BENCHMARK*		-14.79	%		1.78	%		2.84	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The S&P 500 Index 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.

* Benchmark reflects a 45/55 ratio of the performance of the S&P 500 Index and the Barclays Capital Credit Index.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    9

9

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)

BEROLINA FUND

OBJECTIVE: The investment objective of Berolina is a combination of growth of capital and total return.

Inception: November 10, 2006

Over the past 12 months, Rydex Berolina Fund declined 42.14%. Over this same period, Berolina Fund’s performance benchmark generated a total return of -27.50%. The blended index used for this comparison was comprised of 75% of the total return of the S&P 500 Index and 25% of the return of the Barclays Capital Credit Index. The critical event that drove investors to be extremely risk averse was Lehman Brothers Holdings, Inc. being “allowed” to file for bankruptcy on September 14. That set off a chain of events that caused a panic sell-off in the prices of equities and commodities as well as corporate bonds. As a result, Berolina Fund’s holdings of corporate bond holdings failed to provide the level

of diversification normally generated by the fixed-income asset class.

Berolina Fund’s equity allocation, positions in Latin America and the Dow Jones Industrial Average Index were reduced. Both of the latter have a high correlation to global economic activity. Until economic activity around the world stabilizes and commodity-related prices firm up, we elected to reduce these positions.

During this period of time, Berolina Fund took advantage of the distressed level at which corporate bonds were trading by increasing its allocation to bonds from approximately 11% on June 30 to 27% during the fourth quarter. At current valuation levels, we continue to believe that corporate bonds have the potential to offer equity-like returns with less volatility.

Sector Diversification (Market Exposure as % of Net Assets)

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

Ten Largest Holdings (% of Total Net Assets)
iShares iBoxx $ Investment Grade
Corporate Bond Fund	7.0	%
iShares MSCI Emerging Markets
Index Fund	6.8	%
iShares iBoxx $ High Yield Corporate
Bond Fund	6.2	%
iShares S&P Latin America 40
Index Fund	5.9	%
SPDR Barclays High Yield Bond ETF	5.7	%
SPDR S&P Biotech ETF	4.7	%
Consumer Staples Select Sector
SPDR Fund	4.4	%
SPDR S&P China ETF	2.5	%
iShares MSCI Pacific ex-Japan Index Fund	2.5	%
Berkshire Hathaway, Inc. — Class A	2.4	%
Top Ten Total	48.1	%

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

10    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

10

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)(continued)

Cumulative Fund Performance:
November 10, 2006 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

				SINCE
	ONE			INCEPTION
	YEAR			(11/10/06)
BEROLINA FUND		-42.14	%		-16.23	%
S&P500 INDEX		-37.00	%		-16.23	%
SYNTHETIC BALANCED BENCHMARK*		-27.50	%		1.76	%

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.

* Benchmark reflects a 75/25 ratio of the performance of the S&P 500 Index and the Barclays Capital Credit Index.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    11

SCHEDULE OF INVESTMENTS

December 31, 2008

     AMERIGO FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 7.9%
FINANCIALS 2.5%
Berkshire Hathaway, Inc. — Class A*		53	$	5,119,800
Total Financials				5,119,800
INDUSTRIALS 1.4%
Emerson Electric Co.		14,100		516,201
3M Co.		8,500		489,090
Burlington Northern Santa Fe Corp.		6,300		476,973
General Electric Co.		29,400		476,280
Caterpillar, Inc.		9,900		442,233
Honeywell International, Inc.		13,000		426,790
Total Industrials				2,827,567
ENERGY 1.2%
Exxon Mobil Corp.		9,500		758,385
Occidental Petroleum Corp.		8,100		485,919
Chevron Corp.		6,300		466,011
Devon Energy Corp.		6,400		420,544
Hess Corp.		5,900		316,476
BP PLC — SP ADR		2,200		102,828
Total Energy				2,550,163
CONSUMER STAPLES 1.1%
Procter & Gamble Co.		9,500		587,290
Philip Morris International, Inc.		12,100		526,471
Coca-Cola Co.		11,300		511,551
PepsiCo, Inc.		8,500		465,545
Altria Group, Inc.		5,400		81,324
Total Consumer Staples				2,172,181
INFORMATION TECHNOLOGY 1.0%
Intel Corp.		33,600		492,576
Cisco Systems, Inc.*		26,800		436,840
Microsoft Corp.		21,500		417,960
International Business Machines Corp.		4,900		412,384
Apple, Inc.*		3,500		298,725
Total Information Technology				2,058,485
HEALTH CARE 0.3%
Johnson & Johnson, Inc.		9,500		568,385
Total Health Care				568,385
TELECOMMUNICATION SERVICES 0.2%
AT&T, Inc.		17,600		501,600
Total Telecommunication Services				501,600

			MARKET
	SHARES		VALUE
MATERIALS 0.2%
E.I. du Pont de Nemours and Co.		13,600	$	344,080
Total Materials				344,080
Total Common Stocks (Cost $20,763,370)				16,142,261
EXCHANGE TRADED FUNDS 90.4%
UNITED STATES OF AMERICA 61.4%
iShares Russell 1000
Growth Index Fund		462,000		17,121,720
PowerShares QQQ		462,000		13,739,880
Vanguard Mid-Cap ETF		220,200		9,514,842
iShares Russell Midcap
Growth Index Fund		300,300		9,405,396
SPDR Trust, Series 1		91,300		8,238,912
DIAMONDS Trust, Series I		81,600		7,156,320
SPDR S&P Biotech ETF		130,200		6,994,344
iShares iBoxx $ Investment Grade Corporate Bond Fund		64,000		6,505,600
iShares iBoxx $ High Yield Corporate Bond Fund		79,700		6,063,576
iShares Russell 2000 Index Fund		112,100		5,523,167
iShares Russell Midcap Index Fund		90,100		5,380,772
Rydex Russell Top 50 ETF†		70,200		5,010,174
SPDR Barclays Capital High Yield Bond ETF		119,600		3,826,004
KBW Bank ETF		160,200		3,506,778
Vanguard Materials ETF		48,700		2,210,980
Technology Select Sector SPDR Fund		141,000		2,172,810
Consumer Staples
Select Sector SPDR Fund		81,100		1,935,857
Utilities Select Sector SPDR Fund		59,900		1,738,897
Industrial Select Sector SPDR Fund		60,200		1,413,496
Market Vectors-Coal ETF		81,100		1,193,792
KBW Capital Markets ETF		40,500		1,065,555
iShares Barclays 1-3 Year
Treasury Bond Fund		11,000		931,238
iShares Barclays 3-7 Year Treasury Bond Fund		8,000		924,560
Vanguard Mega Cap 300 ETF		27,600		870,780
Vanguard Mega Cap 300 Growth ETF		27,600		870,780
Vanguard Mega Cap 300 Value ETF		27,600		866,088
iShares Barclays 7-10 Year Treasury Bond Fund		8,000		788,240
Vanguard Small-Cap ETF		16,200		691,416
Total United States of America				125,661,974

12    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     AMERIGO FUND

			MARKET
	SHARES		VALUE
INTERNATIONAL 8.3%
iShares MSCI Emerging Markets Index Fund		565,000	$	14,108,050
Vanguard Emerging Markets ETF		67,800		1,606,860
SPDR S&P BRIC 40 ETF		86,800		1,231,692
Total International				16,946,602
LATIN AMERICA REGION 6.5%
iShares S&P Latin America 40 Index Fund		524,000		13,346,280
Total Latin America Region				13,346,280
CHINA 4.0%
iShares FTSE/Xinhua China 25 Index Fund		214,900		6,270,782
SPDR S&P China ETF		30,000		1,357,800
iShares S&P Asia 50 Index Fund		21,800		549,360
Total China				8,177,942
GLOBAL 3.5%
Vanguard Short-Term Bond ETF		32,000		2,577,280
iShares S&P Global Materials Sector Index Fund		40,500		1,584,765
iShares S&P Global Energy Sector Index Fund		39,900		1,167,474
iShares S&P Global Industrials Sector Index Fund		30,400		1,103,216
SPDR Gold Trust*		8,000		692,400
iShares Silver Trust*		8,000		90,000
Total Global				7,215,135
ASIAN PACIFIC REGION 3.3%
Vanguard Pacific ETF		121,000		5,302,220
SPDR S&P Emerging Asia Pacific ETF		35,100		1,542,294
Total Asian Pacific Region				6,844,514
BRAZIL 1.7%
iShares MSCI Brazil Index Fund		101,000		3,524,900
Total Brazil				3,524,900
ASIAN PACIFIC REGION EX JAPAN 0.8%
iShares MSCI Pacific ex-Japan Index Fund		60,900		1,604,715
Total Asian Pacific Region ex Japan				1,604,715
TAIWAN 0.5%
iShares MSCI Taiwan Index Fund, Inc.		121,000		918,390
Total Taiwan				918,390

			MARKET
	SHARES		VALUE
HONG KONG 0.4%
iShares MSCI Hong Kong Index Fund		80,100	$	830,637
Total Hong Kong				830,637
Total Exchange Traded Funds (Cost $256,788,805)				185,071,089
MUTUAL FUNDS 1.9%
First American Treasury Obligations Fund		3,962,330		3,962,330
Total Mutual Funds (Cost $3,962,330)				3,962,330
Total Investments 100.2% (Cost $281,514,505)			$	205,175,680
Liabilities in Excess of Other Assets – (0.2)%			$	(322,619	)
Net Assets – 100.0%			$	204,853,061

*	Non-Income Producing Security.
†	Affiliated Fund
	ADR—American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    13

SCHEDULE OF INVESTMENTS

December 31, 2008

     CLERMONT FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 3.8%
FINANCIALS 2.0%
Berkshire Hathaway, Inc. — Class A*		10	$	966,001
Total Financials				966,001
INDUSTRIALS 0.4%
Emerson Electric Co.		1,100		40,271
3M Co.		600		34,524
Burlington Northern Santa Fe Corp.		450		34,069
General Electric Co.		2,100		34,020
Caterpillar, Inc.		760		33,949
Honeywell International, Inc.		1,000		32,830
Total Industrials				209,663
ENERGY 0.4%
Exxon Mobil Corp.		800		63,864
Occidental Petroleum Corp.		600		35,994
Devon Energy Corp.		500		32,855
Chevron Corp.		400		29,588
Hess Corp.		450		24,138
BP PLC — SP ADR		400		18,696
Total Energy				205,135
CONSUMER STAPLES 0.4%
Coca-Cola Co.		900		40,743
PepsiCo, Inc.		700		38,339
Procter & Gamble Co.		600		37,092
Philip Morris International, Inc.		800		34,808
Altria Group, Inc.		1,100		16,566
Total Consumer Staples				167,548
INFORMATION TECHNOLOGY 0.3%
Cisco Systems, Inc.*		2,100		34,230
International Business Machines Corp.		350		29,456
Microsoft Corp.		1,500		29,160
Intel Corp.		1,700		24,922
Apple, Inc.*		200		17,070
Total Information Technology				134,838
HEALTH CARE 0.1%
Johnson & Johnson, Inc.		600		35,898
Total Health Care				35,898
TELECOMMUNICATION SERVICES 0.1%
AT&T, Inc.		1,200		34,200
Total Telecommunication Services				34,200

			MARKET
	SHARES		VALUE
MATERIALS 0.1%
E.I. du Pont de Nemours and Co.		1,050	$	26,565
Total Materials				26,565
Total Common Stocks (Cost $2,134,342)				1,779,848
EXCHANGE TRADED FUNDS 94.9%
UNITED STATES OF AMERICA 77.0%
iShares Barclays Aggregate Bond Fund		56,200		5,838,056
Vanguard Total Bond Market ETF		61,200		4,847,040
iShares iBoxx $ Investment Grade Corporate Bond Fund		45,500		4,625,075
iShares iBoxx $ High Yield Corporate Bond Fund		55,700		4,237,656
SPDR Barclays Capital High Yield Bond ETF		64,000		2,047,360
iShares Russell 1000 Growth Index Fund		40,700		1,508,342
SPDR Trust, Series 1		15,900		1,434,816
PowerShares QQQ		40,700		1,210,418
SPDR S&P Biotech ETF		20,600		1,106,632
Vanguard Consumer Staples VIPERs		15,800		914,030
Vanguard Mid-Cap ETF		20,600		890,126
DIAMONDS Trust, Series I		8,000		701,600
Vanguard Mega Cap 300 Growth ETF		20,200		637,310
Vanguard Mega Cap 300 ETF		20,200		637,310
Vanguard Mega Cap 300 Value ETF		20,200		633,876
Technology Select Sector SPDR Fund		40,700		627,187
KBW Bank ETF		28,500		623,865
KBW Capital Markets ETF		20,200		531,462
iShares Russell 2000 Index Fund		8,200		404,014
Consumer Staples Select Sector SPDR Fund		15,800		377,146
Utilities Select Sector SPDR Fund		12,400		359,972
Vanguard Small-Cap ETF		8,200		349,976
Rydex Russell Top 50 ETF†		4,000		285,480
Market Vectors-Coal ETF		14,200		209,024
iShares Barclays 7-10 Year Treasury Bond Fund		2,000		197,060
iShares Barclays 3-7 Year Treasury Bond Fund		1,100		127,127
BlackRock Floating Rate Income Strategies Fund Inc		12,200		106,872
Van Kampen Senior Income Trust		40,500		103,680
BlackRock Floating Rate Income Strategies Fund II Inc		12,200		103,212

14    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     CLERMONT FUND

			MARKET
	SHARES		VALUE
Eaton Vance Floating-Rate Income Trust		12,200	$	97,844
Nuveen Floating Rate Income Fund		14,200		85,768
Pioneer Floating Rate Trust		12,200		85,766
Nuveen Floating Rate Income Opportunity Fund		14,200		76,112
Eaton Vance Senior Income Trust		20,300		69,223
BlackRock Corporate High Yield Fund VI, Inc.		8,900		55,803
BlackRock Corporate High Yield Fund V, Inc.		8,900		53,667
BlackRock Corporate High Yield Fund, Inc.		14,200		53,392
BlackRock Corporate High Yield Fund III, Inc.		14,200		51,546
Dreyfus High Yield Strategies Fund		14,200		31,666
Van Kampen High Income Trust II		14,200		25,276
Helios High Income Fund, Inc.		14,200		13,348
Total United States of America				36,375,135
GLOBAL 7.8%
Vanguard Short-Term Bond ETF		38,000		3,060,520
SPDR Gold Trust*		4,100		354,855
Vanguard Intermediate-Term Bond ETF		2,000		159,140
Western Asset High Income Fund II, Inc.		12,200		61,610
iShares Silver Trust*		4,100		46,125
Helios Multi-Sector High Income Fund, Inc.		14,200		8,804
Total Global				3,691,054
INTERNATIONAL 4.2%
iShares MSCI Emerging Markets Index Fund		39,300		981,321
Vanguard Emerging Markets ETF		39,300		931,410
SPDR S&P BRIC 40 ETF		5,500		78,045
Total International				1,990,776
LATIN AMERICA REGION 3.5%
iShares S&P Latin America 40 Index Fund		66,200		1,686,114
Total Latin America Region				1,686,114
ASIAN PACIFIC REGION 1.3%
Vanguard Pacific ETF		8,400		368,088
SPDR S&P Emerging Asia Pacific ETF		5,500		241,670
Total Asian Pacific Region				609,758

			MARKET
	SHARES		VALUE
CHINA 0.8%
SPDR S&P China ETF		5,500	$	248,930
iShares S&P Asia 50 Index Fund		5,500		138,600
Total China				387,530
HONG KONG 0.3%
iShares MSCI Hong Kong Index Fund		12,400		128,588
Total Hong Kong				128,588
Total Exchange Traded Funds (Cost $54,439,731)				44,868,955
MUTUAL FUNDS 1.1%
First American Treasury Obligations Fund		513,001		513,001
Total Mutual Funds (Cost $513,001)				513,001
Total Investments 99.8% (Cost $57,087,074)			$	47,161,804
Other Assets in Excess of Liabilities – 0.2%			$	97,533
Net Assets – 100.0%			$	47,259,337

*	Non-Income Producing Security.
†	Affiliated Fund
	ADR—American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    15

SCHEDULE OF INVESTMENTS

December 31, 2008

     BEROLINA FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 8.3%
FINANCIALS 2.5%
Berkshire Hathaway, Inc. — Class A*		11	$	1,062,600
Total Financials				1,062,600
CONSUMER STAPLES 1.5%
UST, Inc.		1,800		124,884
Procter & Gamble Co.		2,000		123,640
Philip Morris International, Inc.		2,500		108,775
Coca-Cola Co.		2,400		108,648
PepsiCo, Inc.		1,800		98,586
British American Tobacco PLC — SP ADR		1,200		63,528
Altria Group, Inc.		2,400		36,144
Total Consumer Staples				664,205
INDUSTRIALS 1.3%
Emerson Electric Co.		2,900		106,169
3M Co.		1,800		103,572
Burlington Northern Santa Fe Corp.		1,300		98,423
General Electric Co.		6,000		97,200
Caterpillar, Inc.		2,000		89,340
Honeywell International, Inc.		2,700		88,641
Total Industrials				583,345
ENERGY 1.2%
Exxon Mobil Corp.		2,000		159,660
Chevron Corp.		1,300		96,161
Occidental Petroleum Corp.		1,600		95,984
Devon Energy Corp.		1,300		85,423
Hess Corp.		1,200		64,368
BP PLC — SP ADR		400		18,696
Total Energy				520,292
INFORMATION TECHNOLOGY 1.0%
Intel Corp.		6,900		101,154
Cisco Systems, Inc.*		5,500		89,650
Microsoft Corp.		4,400		85,536
International Business Machines Corp.		1,000		84,160
Apple, Inc.*		700		59,745
Total Information Technology				420,245
HEALTH CARE 0.3%
Johnson & Johnson, Inc.		2,000		119,660
Total Health Care				119,660

			MARKET
	SHARES		VALUE
TELECOMMUNICATION SERVICES 0.2%
AT&T, Inc.		3,600	$	102,600
Total Telecommunication Services				102,600
MATERIALS 0.2%
E.I. du Pont de Nemours and Co.		2,800		70,840
Total Materials				70,840
CONSUMER DISCRETIONARY 0.1%
Fortune Brands, Inc.		1,100		45,408
Total Consumer Discretionary				45,408
Total Common Stocks (Cost $4,837,838)				3,589,195
EXCHANGE TRADED FUNDS 89.8%
UNITED STATES OF AMERICA 55.7%
iShares iBoxx $ Investment Grade Corporate Bond Fund		30,000		3,049,500
iShares iBoxx $ High Yield Corporate Bond Fund		35,200		2,678,016
SPDR Barclays Capital High Yield
Bond ETF		77,900		2,492,021
SPDR S&P Biotech ETF		38,100		2,046,732
Consumer Staples Select Sector SPDR Fund		80,200		1,914,374
Vanguard Mid-Cap ETF		20,800		898,768
KBW Bank ETF		36,500		798,985
iShares Russell 1000 Growth Index Fund		20,600		763,436
KBW Capital Markets ETF		25,000		657,750
Vanguard Large-Cap ETF		16,000		652,000
Vanguard Growth ETF		16,000		632,160
Vanguard Mega Cap 300 Growth ETF		20,000		631,000
Vanguard Mega Cap 300 ETF		20,000		631,000
Vanguard Mega Cap 300
Value ETF		20,000		627,600
PowerShares QQQ		20,600		612,644
Materials Select Sector SPDR Fund		26,100		593,514
Rydex Russell Top 50 ETF†		8,300		592,371
SPDR Trust, Series 1		5,400		487,296
Vanguard Small-Cap ETF		8,800		375,584
Market Vectors-Coal ETF		25,000		368,000
iShares Dow Jones US Oil Equipment & Services Index Fund		13,700		363,461
Technology Select Sector SPDR Fund		20,600		317,446
PowerShares DB Base Metals Fund*		18,800		223,908
BlackRock Floating Rate Income Strategies Fund Inc		21,300		186,588

16    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     BEROLINA FUND

			MARKET
	SHARES		VALUE
Eaton Vance Floating-Rate Income Trust		22,500	$	180,450
BlackRock Floating Rate Income Strategies Fund II Inc		21,300		180,198
Pioneer Floating Rate Trust		23,800		167,314
Nuveen Floating Rate Income Fund		24,000		144,960
Nuveen Floating Rate Income Opportunity Fund		24,700		132,392
BlackRock Corporate High Yield Fund VI, Inc.		20,800		130,416
BlackRock Corporate
High Yield Fund V, Inc.		20,800		125,424
Van Kampen Senior Income Trust		41,600		106,496
Eaton Vance Senior Income Trust		27,900		95,139
BlackRock Corporate High Yield Fund, Inc.		20,800		78,208
BlackRock Corporate High Yield Fund III, Inc.		20,800		75,504
Dreyfus High Yield Strategies Fund		20,800		46,384
Van Kampen High Income Trust II		20,800		37,024
Vanguard Total Bond Market ETF		400		31,680
iShares Russell 2000 Index Fund		400		19,708
Helios High Income Fund, Inc.		20,800		19,552
Total United States of America				24,165,003
INTERNATIONAL 10.2%
iShares MSCI Emerging Markets Index Fund		118,500		2,958,945
Vanguard Emerging Markets ETF		36,600		867,420
SPDR S&P BRIC 40 ETF		41,300		586,047
Total International				4,412,412
LATIN AMERICA REGION 5.9%
iShares S&P Latin America 40 Index Fund		100,300		2,554,641
Total Latin America Region				2,554,641
GLOBAL 5.8%
iShares S&P Global Materials Sector Index Fund		16,700		653,471
iShares S&P Global Industrials Sector Index Fund		16,700		606,043
iShares S&P Global Energy Sector Index Fund		12,000		351,120
SPDR Gold Trust*		4,000		346,200
Vanguard Short-Term Bond ETF		2,800		225,512
iPath Dow Jones-AIG Commodity Index Total Return ETN*		4,700		165,722
Western Asset High Income Fund II, Inc.		20,800		105,040
iShares Silver Trust*		4,000		45,000

			MARKET
	SHARES		VALUE
Helios Multi-Sector High Income Fund, Inc.		20,800	$	12,896
Total Global				2,511,004
CHINA 5.4%
SPDR S&P China ETF		23,700		1,072,662
iShares FTSE/Xinhua China 25 Index Fund		32,200		939,596
iShares S&P Asia 50 Index Fund		13,300		335,160
Total China				2,347,418
ASIAN PACIFIC REGION 3.0%
Vanguard Pacific ETF		16,700		731,794
SPDR S&P Emerging Asia Pacific ETF		13,300		584,402
Total Asian Pacific Region				1,316,196
ASIAN PACIFIC REGION EX JAPAN 2.4%
iShares MSCI Pacific ex-Japan Index Fund		40,500		1,067,175
Total Asian Pacific Region ex Japan				1,067,175
BRAZIL 1.0%
iShares MSCI Brazil Index Fund		12,500		436,250
Total Brazil				436,250
HONG KONG 0.4%
iShares MSCI Hong Kong Index Fund		16,000		165,920
Total Hong Kong				165,920
Total Exchange Traded Funds (Cost $55,637,804)				38,976,019
MUTUAL FUNDS 2.0%
First American Treasury Obligations Fund		848,572		848,572
Total Mutual Funds (Cost $848,572)				848,572
Total Investments 100.1% (Cost $61,324,214)			$	43,413,786
Other Assets in Excess of Liabilities – (0.1)%			$	(22,341	)
Net Assets – 100.0%			$	43,391,445

*	Non-Income Producing Security.
†	Affiliated Fund
	ADR—American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    17

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2008

	Amerigo			Clermont			Berolina
	Fund			Fund			Fund
Assets
Investment Securities	$	200,165,506		$	46,876,324		$	42,821,415
Investments in Affiliated Funds		5,010,174			285,480			592,371
Total Investments		205,175,680			47,161,804			43,413,786
Receivable for Fund Shares Sold		10,172			99,171			4,487
Investment Income Receivable		405,767			141,392			152,642
Total Assets		205,591,619			47,402,367			43,570,915
Liabilities
Payable for Fund Shares Redeemed		205,513			30,779			47,343
Investment Advisory Fees Payable		155,521			35,687			32,725
Transfer Agent and Administrative Fees Payable		43,200			9,913			9,090
Distribution and Service Fees Payable		43,200			9,913			9,090
Portfolio Accounting Fees Payable		17,280			3,965			3,636
Custody Fees Payable		5,593			1,284			1,207
Other Accrued Fees		243,251			51,489			51,379
Total Liabilities		713,558			143,030			154,470
Net Assets	$	204,878,061		$	47,259,337		$	43,416,445
Net Assets Consist Of
Paid-In Capital	$	316,305,813		$	63,814,509		$	72,061,740
Undistributed Net Investment Income		1,135,397			1,340,035			964,113
Accumulated Net Realized Loss on Investments		(36,224,324	)		(7,969,937	)		(11,698,980	)
Net Unrealized Depreciation on Investments		(76,338,825	)		(9,925,270	)		(17,910,428	)
NET ASSETS	$	204,878,061		$	47,259,337		$	43,416,445
Shares Outstanding		9,465,663			2,612,380			2,694,245
Net Asset Values	$	21.64		$	18.09		$	16.11
Cost of Investments	$	281,514,505		$	57,087,074		$	61,324,214

18    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

STATEMENTS OF OPERATIONS

Year Ended December 31, 2008

	Amerigo			Clermont			Berolina
	Fund			Fund			Fund
Investment Income
Interest	$	—		$	10,591		$	57,712
Income from Securities Lending, net		624,613			104,598			171,595
Dividends, Net of Foreign Tax Withheld		5,558,092			2,230,874			1,904,125
Dividends from Affiliated Funds		168,432			8,855			21,047
Total Income		6,351,137			2,354,918			2,154,479
Expenses
Investment Advisory Fees		2,831,066			551,008			643,763
Transfer Agent and Administrative Fees		786,407			153,058			178,823
Portfolio Accounting Fees		295,781			61,223			71,529
Trustees’ Fees*		35,592			7,590			7,430
Shareholder Service Fees		786,407			153,058			178,823
Custody Fees		93,815			18,064			23,742
Miscellaneous		360,700			70,882			81,652
Total Expenses		5,189,768			1,014,883			1,185,762
Net Investment Income		1,161,369			1,340,035			968,717
Realized and Unrealized Gain (Loss) on Investments
Net Realized Gain (Loss) on:
Investment Securities		(34,973,443	)		(7,632,196	)		(11,683,836	)
Total Net Realized Loss		(34,973,443	)		(7,632,196	)		(11,683,836	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(132,185,284	)		(15,254,103	)		(24,539,979	)
Net Change in Unrealized Appreciation (Depreciation)		(132,185,284	)		(15,254,103	)		(24,539,979	)
Net Loss on Investments		(167,158,727	)		(22,886,299	)		(36,223,815	)
Net Decrease in Net Assets from Operations	$	(166,022,358	)	$	(21,546,264	)	$	(35,280,098	)
Foreign Tax Withheld	$	—		$	—		$	29

* 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 VARIABLE TRUST ANNUAL REPORT    |    19

STATEMENTS OF CHANGES IN NET ASSETS

	Amerigo Fund						Clermont Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income	$	1,161,369		$	935,950		$	1,340,035		$	1,121,752
Net Realized Gain (Loss) on Investments		(34,973,443	)		15,635,297			(7,632,196	)		8,459,992
Net Change in Unrealized Appreciation (Depreciation) on Investments		(132,185,284	)		22,707,195			(15,254,103	)		(5,100,549	)
Net Increase (Decrease) in Net Assets from Operations		(166,022,358	)		39,278,442			(21,546,264	)		4,481,195
Distributions to Shareholders from:*
Net Investment Income		(953,283	)		(1,267,780	)		(650,300	)		(1,188,265	)
Realized Gain on Investments		(4,735,912	)		(13,487,428	)		(909,727	)		(8,572,083	)
Total Distributions to Shareholders		(5,689,195	)		(14,755,208	)		(1,560,027	)		(9,760,348	)
Share Transactions
Proceeds from Shares Purchased		85,058,638			110,973,073			34,231,270			38,517,427
Value of Shares Purchased through Dividend Reinvestment		5,689,195			14,755,208			1,560,027			9,760,348
Cost of Shares Redeemed		(78,876,030	)		(64,968,711	)		(27,689,440	)		(80,543,715	)
Net Increase (Decrease) in Net Assets From Share Transactions		11,871,803			60,759,570			8,101,857			(32,265,940	)
Net Increase (Decrease) in Net Assets		(159,814,750	)		85,282,804			(15,004,434	)		(37,545,093	)
Net Assets—Beginning of Period		364,692,811			279,410,007			62,263,771			99,808,864
Net Assets—End of Period	$	204,878,061		$	364,692,811		$	47,259,337		$	62,263,771
Undistributed Net Investment Income— End of Period	$	1,135,397		$	957,147		$	1,340,035		$	650,300

* For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

20    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Berolina Fund
Year			Year
Ended			Ended
December 31,			December 31,
2008			2007
$	968,717		$	801,212
	(11,683,836	)		1,980,907
	(24,539,979	)		6,601,470
	(35,280,098	)		9,383,589
	(824,090	)		—
	(852,832	)		(1,124,847	)
	(1,676,922	)		(1,124,847	)
	20,454,297			69,340,665
	1,676,922			1,124,847
	(26,704,126	)		(13,791,956	)
	(4,572,907	)		56,673,556
	(41,504,927	)		64,932,298
	84,921,372			19,989,074
$	43,416,445		$	84,921,372
$	964,113		$	828,032

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    21

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.

																												RATIOS TO
					Net Realized			Net Increase																				AVERAGE NET ASSETS:
	NET ASSET				and			(Decrease) in Net			Distributions			Distributions						Net Increase			NET ASSET														Net Assets,
	VALUE,		Net		Unrealized			Asset Value			from Net			from Net						(Decrease) in			VALUE,		Total						Net			Portfolio			End of
	BEGINNING		Investment		Gains (Losses)			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Investment			Turnover			Period (000’s
Year Ended	OF PERIOD		Income†		on Investments			Operations			Income§			Gains§			Distributions			Value			PERIOD		Return†††			Expenses††			Income			Rate			omitted)
Amerigo Fund
December 31, 2008	$	39.13	$	.12	$	(17.01	)	$	(16.89	)	$	(.10	)	$	(.50	)	$	(.60	)	$	(17.49	)	$	21.64		(43.09)	%		1.65	%		0.36	%		103	%	$	204,853
December 31, 2007		35.83		.12		4.85			4.97			(.14	)		(1.53	)		(1.67	)		3.30			39.13		13.77	%		1.63	%		0.32	%		88	%		364,693
December 31, 2006		34.78		.21		4.06			4.27			(.03	)		(3.19	)		(3.22	)		1.05			35.83		12.30	%		1.64	%		0.57	%		299	%		279,410
December 31, 2005		32.18		.05		2.94			2.99			(.04	)		(.35	)		(.39	)		2.60			34.78		9.35	%		1.64	%		0.15	%		82	%		196,493
December 31, 2004		28.99		.08		3.13			3.21			(.02	)		—			(.02	)		3.19			32.18		11.09	%		1.63	%		0.27	%		149	%		127,059
Clermont Fund
December 31, 2008		26.79		.51		(8.60	)		(8.09	)		(.25	)		(.36	)		(.61	)		(8.70	)		18.09		(30.07)	%		1.66	%		2.19	%		149	%		47,259
December 31, 2007		29.90		.53		1.40			1.93			(.61	)		(4.43	)		(5.04	)		(3.11	)		26.79		6.23	%		1.64	%		1.73	%		163	%		62,264
December 31, 2006		29.41		.46		1.98			2.44			(.64	)		(1.31	)		(1.95	)		.49			29.90		8.34	%		1.63	%		1.51	%		197	%		99,809
December 31, 2005		28.57		.33		.78			1.11			(.17	)		(.10	)		(.27	)		.84			29.41		3.92	%		1.64	%		1.15	%		129	%		108,667
December 31, 2004		27.05		.32		1.27			1.59			(.07	)		—			(.07	)		1.52			28.57		5.89	%		1.63	%		1.17	%		124	%		91,092
Berolina Fund
December 31, 2008		28.98		.32		(12.56	)		(12.24	)		(.31	)		(.32	)		(.63	)		(12.87	)		16.11		(42.14)	%		1.66	%		1.32	%		120	%		43,391
December 31, 2007		25.55		.34		3.48			3.82			—			(.39	)		(.39	)		3.43			28.98		14.91	%		1.62	%		1.22	%		171	%		84,921
December 31, 2006*		25.00		.40		.34			.74			(.19	)		—			(.19	)		.55			25.55		2.96	%		1.63	%**		10.65	%**		13	%		19,989

*	Since the commencement of operations: November 10, 2006.
**	Income ratios for the year ended December 31, 2006 were calculated for an abbreviated time frame and are not indicative of future class performance, and are annualized.
†	Calculated using the average daily shares outstanding for the year.
††	Does not include expenses of the underlying funds in which the Funds invest.
†††	Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
§	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 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 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, 2008, 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.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, Inc. (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor are affiliated entities.

CLS Investment Firm, LLC serves as investment 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. The information contained in these notes may not apply to every Fund in the Trust.

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, 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

Rydex Investments 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 also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.

E. 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.

F. 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 their investment strategies, the Funds, as well as the underlying funds they invest in, 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 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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    23

NOTES TO FINANCIAL STATEMENTS (continued)

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.

There are several risks associated with the use of structured notes. Structured notes are leveraged, thereby providing an exposure to the underlying benchmark greater than the face amount and increasing the volatility of each note relative to the change in the underlying linked financial instrument. A highly liquid secondary market may not exist for the structured notes a Fund invests in, which may make it difficult for that Fund to sell the structured notes it holds at an acceptable price or to accurately value them. In addition, structured notes are subject to the risk that the counterparty to the instrument, or issuer, might not pay interest when due or repay principal at maturity of the obligation. Although the Trust will not invest in any structured notes unless Rydex Investments believes that the issuer is creditworthy, a Fund does bear the risk of loss of the amount expected to be received in the event of the default or bankruptcy of the issuer.

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 Rydex Investments 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.

There are several risks associated with credit default swaps. Credit default swaps involve the exchange of a fixed-rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor,” receiving a periodic payment that is a fixed percentage

applied to a notional principal amount. In return, the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. A Fund may enter into credit default swaps in which that Fund or its counterparty acts as guarantor. By acting as the guarantor of a swap, that Fund assumes the market and credit risk of the underlying instrument, including liquidity and loss of value.

In conjunction with the use of short sales, options, futures, options on 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, options, futures contracts, options on futures contracts, structured notes, 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 strict counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3.    Fees And Other Transactions With Affiliates
Under the terms of an investment advisory contract, the Trust pays Rydex Investments investment advisory fees calculated at an annual percentage rate of 0.90% of the average daily net assets of each Fund.

Rydex Investments pays the Sub-Advisor out of the advisory fees it receives. In addition, Rydex Investments bears all of its own costs associated with providing these services and the expenses of the Trustees that are affiliated with Rydex Investments. Rydex Investments 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 underlying fund expenses) of the underlying funds in which the Fund invests.

Rydex Investments 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.

Rydex Investments 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.

24    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

Rydex Investments 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 a Distribution Plan for which the Distributor and other firms that provide shareholder services (“Service Providers”) may receive compensation.

The Trust will pay fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets. The Distributor in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs.

The Board approved the use of a Distribution Plan for which the Distributor and other Service Providers may receive compensation. If a Service Provider provides distribution services, the Trust will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor, in turn, will pay the Service Provider out of its fees. The Distributor may, at its discretion, retain a portion of such payments to compensate itself for distribution services. Although approved, for the year ended December 31, 2008, this plan was not utilized.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

4.    Federal Income Tax Information
The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code (IRC) 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.

The Advisor has submitted a request for a Closing Agreement with the Internal Revenue Service (IRS) on behalf of the Amerigo Fund and the Berolina Fund in order to resolve uncertainty regarding the treatment of gains realized in 2008 on the disposition of certain securities for purposes of complying with the income qualification test under Subchapter M of the IRC. At December 31, 2008, each Fund has recorded an estimate of $50,000 associated with obtaining the Closing Agreement, and the Advisor has agreed to reimburse 50% of that amount. The actual cost of the Agreement could be up to $406,479 for the Amerigo Fund, and $340,861 for the Berolina Fund. In the event that the actual cost to each fund exceeds the recorded estimate of $50,000, the portion of this amount to be borne by the Funds is subject to approval by the Board of Trustees.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (fiscal years 2005 —2008), 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, losses deferred due to post-October losses, and excise tax regulations.

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. 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.

The tax character of distributions paid during 2008 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Amerigo Fund	$	3,038,794	$	2,650,401	$	5,689,195
Clermont Fund		650,300		909,727		1,560,027
Berolina Fund		1,664,277		12,645		1,676,922

The tax character of distributions paid during 2007 was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Amerigo Fund	$	10,211,488	$	4,543,720	$	14,755,208
Clermont Fund		4,731,756		5,028,592		9,760,348
Berolina Fund		1,124,847		—		1,124,847

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    25

NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows:

	Undistributed		Undistributed
	Ordinary		Long-Term		Net Unrealized			Capital Loss
Fund	Income		Capital Gain		Depreciation			Carryforward
Amerigo Fund	$	1,134,815	$	—	$	(79,662,214	)	$	(32,900,353	)1
Clermont Fund		1,340,021		—		(10,756,648	)		(7,138,545	)1
Berolina Fund		964,099		—		(18,265,854	)		(7,356,665	)1

Capital Loss Carryforward amounts may be limited due to Treasury Regulations.

¹ Expires in 2016.

At December 31, 2008, 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			Loss
Amerigo Fund	$	284,837,894	$	1,286,881	$	(80,949,095	)	$	(79,662,214	)
Clermont Fund		57,918,452		861,610		(11,618,258	)		(10,756,648	)
Berolina Fund		61,679,640		524,715		(18,790,569	)		(18,265,854	)

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, 2008, 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, 2009:

Fund	Capital
Berolina Fund		(3,986,875	)

5.    Fair Value Measurement

Effective January 1, 2008, the Funds adopted Statement of Financial Accounting Standard No. 157 (“FAS 157”), Fair Value Measurement, which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications.

Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels:

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, 2008:

	Level 1		Level 1		Level 2		Level 2		Level 3		Level 3
	Investments		Other Financial		Investments		Other Financial		Investments		Other Financial
Fund	In Securities		Instruments		In Securities		Instruments		In Securities		Instruments		Total
Assets
Amerigo Fund	$	205,175,680	$	—	$	—	$	—	$	—	$	—	$	205,175,680
Clermont Fund		47,161,804		—		—		—		—		—		47,161,804
Berolina Fund		43,413,786		—		—		—		—		—		43,413,786

6.    Securities Transactions

For the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

	Amerigo		Clermont		Berolina
	Fund		Fund		Fund
Purchases	$	338,035,468	$	98,907,593	$	87,068,009
Sales	$	328,409,875	$	90,772,837	$	92,983,251

26    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

7.    Share Transactions

The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:

					Purchased through										Net Shares
	Shares Purchased				Dividend Reinvestment				Shares Redeemed						Purchased (Redeemed)
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	December 31,		December 31,		December 31,		December 31,		December 31,			December 31,			December 31,			December 31,
	2008		2007		2008		2007		2008			2007			2008			2007
Amerigo		2,452,832		2,858,045		274,177		369,897		(2,581,580	)		(1,706,648	)		145,429			1,521,294
Clermont		1,431,071		1,233,260		90,594		359,365		(1,233,274	)		(2,607,229	)		288,391			(1,014,604	)
Berolina		785,239		2,609,248		108,679		37,950		(1,129,943	)		(499,164	)		(236,025	)		2,148,034

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    27

NOTES TO FINANCIAL STATEMENTS (concluded)

8.    Portfolio Securities Loaned

During the year ended December 31, 2008, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the statement of operations is shown net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of December 31, 2008, the Funds had ceased participation in securities lending.

9.    Change in Independent Registered Public Accounting Firm

The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).

The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.

10.    New Accounting Pronouncements

In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how entities use derivatives, how they are accounted for and how they affect the financial position and operations of that entity. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management is evaluating the impact of FAS 161 on its current disclosures.

28    |    THE RYDEX 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 of Amerigo Fund, Clermont Fund and Berolina Fund (three of the series constituting the Rydex Variable Trust) (the “Funds”), including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year 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 statements of changes in net assets for the year ended December 31, 2007 and 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 statements and 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, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, 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 each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 27, 2009

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    29

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.

The Funds’ distributions to shareholders included:

	Amerigo		Clermont		Berolina
	Fund		Fund		Fund
From long-term capital gains, subject to the 15% rate gains category:	$	2,650,401	$	909,727	$	12,645

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 1-800-820-0888. 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 1-800-820-0888. 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 1-800-820-0888.

30    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, 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 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

TRUSTEES AND OFFICERS

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Carl G. Verboncoeur*	Rydex Series Funds – 2004	160
Trustee, President (1952)	Rydex Variable Trust – 2004
	Rydex Dynamic Funds – 2004
	Rydex ETF Trust – 2004

Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to present) Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present)

Michael P. Byrum*	Rydex Series Funds – 2005	160
Trustee, Vice President	Rydex Variable Trust – 2005
(1970)	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); 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); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)

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	151
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	151
Trustee (1945)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
	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	151
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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    31

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Werner E. Keller	Rydex Series Funds – 2005	151
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	151
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	151
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	151
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

EXECUTIVE OFFICERS
Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Nick Bonos* Vice President and Treasurer (1963)	Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present); 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 (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	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, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, 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.

32    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAAO-2-1208x1209

DECEMBER 31, 2008

RYDEX VARIABLE TRUST ANNUAL REPORT

DOMESTIC EQUITY FUNDS

MULTI-CAP CORE EQUITY FUND

SECTOR ROTATION FUND

ALTERNATIVE INVESTMENT FUNDS

ABSOLUTE RETURN STRATEGIES FUND

ALTERNATIVE STRATEGIES ALLOCATION FUND

COMMODITIES STRATEGY FUND

HEDGED EQUITY FUND

INTERNATIONAL ROTATION FUND

MANAGED FUTURES STRATEGY FUND

REAL ESTATE FUND

STRENGTHENING DOLLAR 2x STRATEGY FUND

WEAKENING DOLLAR 2x STRATEGY FUND

GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888.

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, Inc.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS   2

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS   3

ABOUT SHAREHOLDERS’ FUND EXPENSES   4

PERFORMANCE REPORTS AND FUND PROFILES   6

SCHEDULES OF INVESTMENTS   17

STATEMENTS OF ASSETS AND LIABILITIES   54

STATEMENTS OF OPERATIONS   56

STATEMENTS OF CHANGES IN NET ASSETS   58

FINANCIAL HIGHLIGHTS   62

NOTES TO FINANCIAL STATEMENTS   64

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   75

OTHER INFORMATION   76

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   77

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.

Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.

Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.

It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases), home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.

Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500^® Index’s 37% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.

Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP.

The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.

In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.

We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.

Sincerely,

Michael Byrum
President & Chief Investment Officer

2    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Rydex Funds described in this report are benchmarked daily to leveraged 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.

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.

THE RYDEX 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, 2008 and ending December 31, 2008.

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 VARIABLE TRUST ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

					Beginning		Ending		Expenses
	Expense				Account Value		Account Value		Paid During
	Ratio			†	June 30, 2008		December 31, 2008		Period		*
Table 1. Based on actual Fund return
Multi-Cap Core Equity Fund		1.07	%			$1,000.00	$	681.10	$	4.52
Sector Rotation Fund		1.72	%			1,000.00		641.60		7.10
Absolute Return Strategies Fund		1.84	%			1,000.00		830.70		8.47
Alternative Strategies Allocation Fund††		0.00	%			1,000.00		796.30		—
Commodities Strategy Fund		1.31	%			1,000.00		366.00		4.50
Hedged Equity Fund		1.84	%			1,000.00		810.80		8.38
International Rotation Fund		1.68	%			1,000.00		698.30		7.17
Managed Futures Strategy Fund**		2.21	%			1,000.00		964.00		3.20
Real Estate Fund		1.64	%			1,000.00		629.40		6.72
Strengthening Dollar 2x Strategy Fund		1.73	%			1,000.00		1,205.30		9.59
Weakening Dollar 2x Strategy Fund		1.74	%			1,000.00		781.70		7.79
Table 2. Based on hypothetical 5% return (before expenses)
Multi-Cap Core Equity Fund		1.07	%			1,000.00		1,019.76		5.43
Sector Rotation Fund		1.72	%			1,000.00		1,016.49		8.72
Absolute Return Strategies Fund		1.84	%			1,000.00		1,015.89		9.32
Alternative Strategies Allocation Fund††		0.00	%			1,000.00		1,025.14		—
Commodities Strategy Fund		1.31	%			1,000.00		1,018.55		6.65
Hedged Equity Fund		1.84	%			1,000.00		1,015.89		9.32
International Rotation Fund		1.68	%			1,000.00		1,016.69		8.52
Managed Futures Strategy Fund**		2.21	%			1,000.00		1,014.03		11.29
Real Estate Fund		1.64	%			1,000.00		1,016.89		8.31
Strengthening Dollar 2x Strategy Fund		1.73	%			1,000.00		1,016.44		8.77
Weakening Dollar 2x Strategy Fund		1.74	%			1,000.00		1,016.39		8.82

*	Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies.
**	Since the commencement of operations: November 7, 2008.
†	This ratio represents annualized Total Expenses, which include dividend expense from securities sold short. Excluding short dividend expense, the operating expense ratio would be 0.68% and 0.69% lower for the Absolute Return Strategies Fund and Hedged Equity Fund, respectively.
††	Does not include expenses of the underlying funds in which the Fund invests.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    5

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)

MULTI-CAP CORE EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

Inception: November 29, 2005

Rydex Multi-Cap Core Equity Fund returned - -38.96% for the one-year period ending December 31, 2008 versus the broad market Russell 3000 Index’s 37.31% decline. The Fund allocates its assets generally in equal proportions to the large-, mid- and small-cap size groups. Large-cap stocks outperformed mid-cap but did not beat small-cap equities. The Fund’s size allocation neither added nor detracted significantly to returns.

The Fund uses a quantitative stock ranking model as part of the investment process and also utilizes momentum factors. Of the three factor groups used in the Fund, momentum factors proved to be the strongest for the year. Weak performance in the growth and value factors more than offset the benefit provided by momentum factors in 2008. The stock selection model was particularly weak in energy services and industrials, but performed well in the financial services and utilities sectors.

Cumulative Fund Performance
November 29, 2005 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

				SINCE
	ONE			INCEPTION
	YEAR			(11/29/05)
MULTI-CAP CORE EQUITY FUND		-38.96	%		-12.49	%
RUSSELL 3000 INDEX		-37.31	%		-8.51	%

The returns presented above do not reflect the effects of taxes. Past performance is no guarantee of future results. The Russell 3000 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.	1.7	%
Procter & Gamble Co.	0.9	%
JPMorgan Chase & Co.	0.8	%
International Business Machines Corp.	0.7	%
Chevron Corp.	0.7	%
Wells Fargo & Co.	0.7	%
AT&T, Inc.	0.6	%
Hewlett-Packard Co.	0.6	%
Abbott Laboratories	0.6	%
Verizon Communications, Inc.	0.6	%
Top Ten Total	7.9	%

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

6    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

SECTOR ROTATION FUND

OBJECTIVE: Seeks long-term capital appreciation.

Inception: May 1, 2002

Rydex Sector Rotation Fund returned -40.73% for the one-year period ending December 31, 2008. To no one’s surprise, it was a tough year for both the stock market and for the performance of the Fund. The S&P 500 Index fell 37.00% and the Fund trailed these results. Performance was negatively impacted the most by the Fund’s heavy exposure to industrials, which were hit hard due to the deepening financial crisis and fear of a global slowdown. On the other hand, the Fund also benefited from some well-timed moves into and out of the basic materials and energy sectors. During the first half of the year, the Fund held heavy exposures to the basic material and energy sectors. As momentum waned in these areas (following the decline of oil and commodities), we moved to reduce our exposures. At the more granular industry level, we made allocation decisions involving energy equipment & services, metals & mining, tobacco, capital markets and insurance—all

Cumulative Fund Performance
May 1, 2002 – December 31, 2008

of which benefited the Fund during the year. Allocation decisions made to oil gas & consumables, construction & engineering, marine, pharmaceuticals and air freight & logistics negatively impacted results.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(05/01/02)
SECTOR ROTATION FUND		-40.73	%		0.40	%		0.42	%
S&P 500 INDEX		-37.00	%		-2.19	%		-0.86	%

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)
Procter & Gamble Co.	3.8	%
Genentech, Inc.	3.0	%
Wal-Mart Stores, Inc.	2.6	%
Amgen, Inc.	2.5	%
Apollo Group, Inc. — Class A	2.5	%
Gilead Sciences, Inc.	2.3	%
AT&T, Inc.	2.2	%
H&R Block, Inc.	2.1	%
Verizon Communications, Inc.	1.7	%
Unilever NV	1.7	%
Top Ten Total	24.4	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    7

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

ABSOLUTE RETURN
STRATEGIES FUND

OBJECTIVE: Seeks to provide capital appreciation consistent with the return and risk characteristics of the hedge fund universe. The secondary objective is to achieve these returns with low correlation to, and less volatility than, equity indices.

Inception: November 29, 2005

Hedge funds experienced their worst year on record in 2008. Only two of the 10 hedge fund strategies—global macro and merger arbitrage—tracked by Hedge Fund Research’s (“HFRX”) indices provided positive returns for the period. On the other end of the spectrum, the convertible arbitrage strategy dropped 58.20%, giving it the distinction of being the sole hedge fund strategy capable of underperforming the 37.00% loss posted by the S&P 500 Index. The HFRX Global Hedge Fund Index tracked by HFRX lost 23.10% for the period.

Rydex Absolute Return Strategies Fund lost 18.72% for the one-year period ending December 31, 2008. Relative to the HFRX Global Hedge Fund Index, the Fund benefited from greater exposure to the better-performing hedge fund strategies

Cumulative Fund Performance
November 29, 2005 – December 31, 2008

including global macro, merger arbitrage and equity market neutral. The biggest detractor from Fund performance came from the Fund’s hedged equity allocation, which was punished by both long equity and short volatility exposure.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

				SINCE
	ONE			INCEPTION
	YEAR			(11/29/05)
ABSOLUTE RETURN STRATEGIES FUND		-18.72	%		-3.10	%
S&P 500 INDEX		-37.00	%		-8.30	%
HFRX GLOBAL HEDGE FUND INDEX		-23.10	%		-3.74	%

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.

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)
iShares S&P GSCI Commodity Indexed Trust	5.0	%
iShares MSCI Emerging Markets Index Fund	1.5	%
Sovereign Bancorp, Inc.	1.1	%
Embarq Corp.	1.1	%
NDS Group PLC — SP ADR	1.0	%
Genentech, Inc.	0.9	%
Datascope Corp.	0.9	%
Wachovia Corp.	0.9	%
Nationwide Financial Services, Inc.	0.9	%
Constellation Energy Group, Inc.	0.9	%
Top Ten Total	14.2	%

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

8    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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

Rydex Alternative Strategies Allocation Fund returned -18.55% with an observed correlation with the market of 60.00%. 2008 was a difficult year with the stock market going through a turbulence unseen in the past several decades. It is not uncommon to observe high correlations among assets when the financial markets have strong moves in either direction. Unfortunately, with the negative returns being so prevalent, the Fund did not provide the uncorrelated diversification that was desired, but it did benefit the shareholders with higher returns than the market, although still negative.

In particular, the Rydex Variable Trust—Commodities Strategy Fund helped during the first half of the year and the Rydex Managed Futures Strategy Fund—Class H had the best return over the course of the year. Another measure that is important is the observed correlation with the market. Clients that included the Fund with a traditional allocation would likely benefit from its addition to their portfolio.

Cumulative Fund Performance
May 1, 2008 – December 31, 2008

The Fund’s collection of the alternative strategies and asset classes is broader than the traditional list of just real estate and commodities. Currently, we are researching other strategies to broaden the list even further.

TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	SINCE
	INCEPTION
	(05/01/08)
ALTERNATIVE STRATEGIES ALLOCATION FUND		-18.55	%
S&P 500 INDEX		-34.79	%
U.S. TREASURY BELLWETHERS: 3 MONTH INDEX		1.14	%

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 U.S. Treasury Bellwethers: 3 Month 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.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Holdings (% of Total Net Assets)
Rydex Series Funds — Managed Futures Strategy Fund — Class H	48.9	%
PowerShares DB G10 Currency Harvest Fund	12.5	%
Rydex Variable Trust — Commodities Strategy Fund	10.7	%
Rydex Variable Trust — Absolute Return Strategies Fund	9.6	%
Rydex Variable Trust — Real Estate Fund	7.1	%
Grand Total	88.8	%

“Holdings” exclude any temporary cash or derivative investments.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    9

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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 Goldman Sachs Commodity Total Return Index (GSCI™”).

Inception: September 30, 2005

For the one-year period ending December 31, 2008, Rydex Commodities Strategy Fund returned -49.02% as opposed to its benchmark, the S&P GSCI, which ended the year down 46.50%. Commodities continued their rally for the first half of 2008 with oil peaking at a price of just over $145/barrel in the beginning of July. U.S. demand for oil subsided as the high price of gasoline led Americans to drive less. Reduced economic activity around the world also weighed heavily on oil prices for the second half of the year. Oil prices fell to less than $34.00 in December, a price not seen since the beginning of 2004, then rallied by year-end to close at $44.60. This was largely due to Israel’s offensive into Gaza.

Reduced housing construction subsequently lowered the demand for copper. Agricultural and livestock prices were also down. Gold provided a positive return for the year, as investors moved into the precious metal to hedge against the long-term

Cumulative Fund Performance
September 30, 2005 – December 31, 2008

inflationary pressures of unprecedented global monetary and fiscal stimulus. Cocoa and gold were the only two commodities that provided positive returns for the year. Their worst performing counterparts were lead, unleaded gasoline, nickel and crude oil.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

				SINCE
	ONE			INCEPTION
	YEAR			(09/30/05)
COMMODITIES STRATEGY FUND		-49.02	%		-19.88	%
S&P 500 INDEX		-37.00	%		-7.14	%
S&P GSCI TOTAL RETURN INDEX		-46.50	%		-17.52	%

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 Total Return 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.

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 exchange traded funds and in derivative instruments such as structured notes, futures contracts, and options on index futures.

10    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

HEDGED EQUITY FUND

OBJECTIVE: Seeks to provide capital appreciation consistent with the return and risk characteristics of the long/short hedge fund universe. The secondary objective is to achieve these returns with low correlation to and less volatility than the equity indices.

Inception: November 29, 2005

Hedge funds experienced their worst year on record in 2008. Long/Short managers (as measured by the HFRX Equity Hedge Index) lost 25.72% on average during the one-year period. By comparison, the Hedged Equity Fund returned -23.84%. All long/short investment styles—growth, value, and momentum—performed poorly during the period due to their equity exposure. The Fund’s long/short value style exposure helped mitigate overall losses as value strategies tended to outperform during the bear market, however, volatility selling strategies—via covered call writing—harmed Fund performance as market implied volatility spiked to unprecedented levels.

Cumulative Fund Performance
November 29, 2005 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

				SINCE
	ONE			INCEPTION
	YEAR			(11/29/05)
HEDGED EQUITY FUND		-23.84	%		-4.84	%
S&P 500 INDEX		-37.00	%		-8.30	%
HFRX EQUITY HEDGE INDEX		-25.72	%		-5.01	%

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 HFRX Equity Hedge 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.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Ten Largest Long Holdings (% of Total Net Assets)
iShares MSCI Emerging Markets Index Fund	4.0	%
Liberty All Star Equity Fund	0.5	%
Eaton Vance Tax-Managed Buy-Write Income Fund	0.5	%
Eaton Vance Tax-Managed Buy-Write Opportunities Fund	0.5	%
First Trust Enhanced Equity Income Fund, Inc.	0.5	%
Nuveen Equity Premium and Growth Fund	0.5	%
Nuveen Core Equity Alpha Fund	0.5	%
Nuveen Equity Premium Opportunity Fund	0.5	%
Vanguard Emerging Markets ETF	0.4	%
Pepco Holdings, Inc.	0.3	%
Top Ten Total	8.2	%

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

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    11

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

INTERNATIONAL ROTATION FUND

OBJECTIVE: Seeks long-term capital appreciation.

Inception: March 27, 2008

2008 was a very poor year for World Equity markets due to the Credit Crunch and resulting fears of a World economic recession. The MSCI World Ex USA Index (Net Dividends Reinvested) returned -39.60% in local currency terms for the period. This was slightly worse than the return for the MSCI USA Index which returned -37.60%. However, due to the recovery in the U.S. Dollar in the latter part of the year, the return from the MSCI World Ex USA Index in U.S. Dollar terms, which is the official benchmark, was lower at -38.26%. Being fully invested, the Fund suffered from the significant falls in equity markets. During the period, the provisional return for the Fund was -31.20% in U.S. Dollar terms. This is slightly behind the S&P 500^® Index and significantly ahead of the benchmark return of -38.26%, although this is of little consolation for investors.

Throughout the period, the Fund has been invested in a selection of international equity markets which have displayed attractive levels and behavior of “Intrinsic Value” compared to the overall World Equity market. Intrinsic Value is a measure of the income generation that investors could potentially receive from an investment, which is fundamental to the justification for investment.

The Fund has had exposure to a variety of countries such as Belgium, Italy and New Zealand early in the year. Canada was

Cumulative Fund Performance
March 27, 2008 – December 31, 2008

also an important holding for much of the period until it was reduced in the Fall as the Fund rotated into other markets such as UK, Switzerland, Japan, Hong Kong and Sweden.

“Intrinsic Value” measurements also identified that the U.S. Dollar was cheap and attractive, so in the latter part of the year, the Fund had significant currency hedges back into the U.S. Dollar in order to protect investors from expected weakness in the currencies of the underlying investments. This proved to be advantageous to the Fund given the weakness of many currencies against the U.S. Dollar.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	SINCE
	INCEPTION
	(03/27/08)
INTERNATIONAL ROTATION FUND		-31.20	%
S&P 500 INDEX		-30.58	%
MSCI WORLD Ex USA INDEX		-38.26	%

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 World Ex USA 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.

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 exchange traded funds and in derivative instruments such as structured notes, futures contracts, and options on index futures.

12    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

MANAGED FUTURES STRATEGY FUND

OBJECTIVE: Seeks to provide investment returns 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”).

Inception: November 7, 2008

The S&P DTI was up 8.29% for 2008. The S&P DTI’s ability to go long and short (with the exception of energy, which can only have a long or neutral stance) was the key driver in the Indicator’s ability to produce positive returns for the year. The S&P DTI was long on the energy sector up until the August rebalance and then switched to a neutral position for the rest of the year. Most of the other commodities positions were long for the first half of the year, as well, before switching to short positions towards the end of the year.

Currency positions were generally long relative to the U.S. dollar in the first half of the year before switching to short positions in the latter half of 2008. The Japanese yen was the exception as it was long for the last three months of the year. Interest rate futures were mixed throughout the year before turning decidedly positive at the end of the year.

Since the Fund’s inception date of November 7, 2008, the S&P DTI was down 3.83%. The Japanese Yen was the only currency future with a long position. The two interest rate

Cumulative Fund Performance
November 7, 2008 – December 31, 2008

futures (Treasury Bond and 10-Year Note) were initially short but moved to a long position at the December rebalance. The Energy sector has been in a neutral position since the Fund’s inception and other commodities sectors have been short.

Copper and the Japanese yen positions provided the most returns for the period. The Euro, Treasury Bond, 10-Year Note and Precious Metals futures had the highest negative returns for the period. The Rydex Managed Futures Strategy Fund returned - -3.60% since the Fund’s inception date.

TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

	SINCE
	INCEPTION
	(11/07/08)
MANAGED FUTURES STRATEGY FUND		-3.60	%
S&P DIVERSIFIED TRENDS INDICATOR		-3.83	%

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.

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 exchange traded funds and in derivative instruments such as structured notes, futures contracts, and options on index futures.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    13

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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”).

Inception: October 1, 2001

Rydex Real Estate Fund returned -41.64% for the one-year period ending December 31, 2008. REITs (down 42.10%) and real estate management companies (down 61.00%) continued to suffer through another tough year as the credit crisis worsened. Despite the downturn in the commercial real estate industry, there were still bright spots: the Fund’s best-performing holding was PS Business Parks, Inc., up 17.10%. On the flip side, the worst-performing stock was General Growth Properties Inc., which lost 96.70% of its value.

Cumulative Fund Performance
October 1, 2001 – December 31, 2008

† 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 12/31/08

							SINCE
	ONE			FIVE			INCEPTION
	YEAR			YEAR			(10/01/01)
REAL ESTATE FUND		-41.64	%		-3.05	%		1.93	%
S&P 500 INDEX		-37.00	%		-2.19	%		-0.06	%
S&P REIT COMPOSITE INDEX		-41.68	%		-4.38	%		0.30	%

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 REIT Composite 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 Long Holdings (% of Total Net Assets)
Public Storage	3.5	%
Annaly Capital Management, Inc.	3.1	%
Simon Property Group, Inc.	2.9	%
Vornado Realty Trust	2.7	%
Equity Residential	2.5	%
Brookfield Asset Management, Inc. — Class A	2.4	%
HCP, Inc.	2.3	%
Plum Creek Timber Co., Inc. (REIT)	2.1	%
Boston Properties, Inc.	2.1	%
Ventas, Inc.	1.9	%
Top Ten Total	25.5	%

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

14    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

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^®.

Inception: September 30, 2005

The U.S. Dollar Index (“DXY”) was up 6.01% for the one-year period ending December 31, 2008. For the first half of the year, the U.S. dollar continued to slide against other major world currencies, as the Federal Reserve cut interest rates five times from 4.25% to 2.00%. As the U.S. subprime mortgage crisis spread, other central banks around the world joined in the Fed’s efforts to slash interest rates as global economic growth slowed during the second half of the year. By the end of 2008, the Federal Reserve cut interest rates to a range between 0.00% and 0.25%. The flight to quality and safety led investors back to U.S.-denominated assets and helped push the U.S. dollar back up into positive territory against other major world currencies for the year. In 2008, the U.S. dollar strengthened against the British Pound, Canadian Dollar, Swedish Krona and the Euro, but remained weak against the Japanese Yen and Swiss Franc. Rydex Strengthening Dollar 2x

Cumulative Fund Performance
September 30, 2005 – December 31, 2008

Strategy Fund returned 5.56% for the year. It achieved a daily correlation of more than 97% to its benchmark of 200% of the daily price movement of the U.S. Dollar Index.

The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

				SINCE
	ONE			INCEPTION
	YEAR			(09/30/05)
STRENGTHENING DOLLAR 2x STRATEGY FUND		5.56	%		-4.28	%
U.S. DOLLAR INDEX		6.01	%		-2.91	%

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, futures contracts, and options on index futures.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    15

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (concluded)

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 performance of the U.S. Dollar Index.

Inception: September 30, 2005

Rydex Weakening Dollar 2x Strategy Fund returned - -12.24% for the year. It achieved a daily correlation of more than 97% to its benchmark of 200% of the inverse daily price movement of the U.S. Dollar Index. The DXY was up 6.01% in 2008. For the first half of 2008, the U.S. dollar continued to slide against other major world currencies, as the Federal Reserve cut interest rates five times from 4.25% to 2.00%. As the U.S. subprime mortgage crisis spread, other central banks around the world joined in the Fed’s efforts to slash interest rates as global economic growth slowed during the second half of 2008. By the end of 2008, the Federal Reserve cut interest rates to a range between 0.00% and 0.25%. The flight to quality and safety led investors back to U.S.-denominated assets and helped push the U.S. dollar back up into positive territory against other major world currencies for the year. In

Cumulative Fund Performance
September 30, 2005 – December 31, 2008

2008, the U.S. dollar strengthened against the British Pound, Canadian Dollar, Swedish Krona and the Euro, but remained weak against the Japanese Yen and Swiss Franc.

The apparent discrepancy between the leveraged and unleveraged indices is the result of compounding, which is described briefly on page 3 of this report.

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08

				SINCE
	ONE			INCEPTION
	YEAR			(09/30/05)
WEAKENING DOLLAR 2x STRATEGY FUND		-12.24	%		5.20	%
U.S. DOLLAR INDEX		6.01	%		-2.91	%

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, futures contracts, and options on index futures.

16    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

SCHEDULE OF INVESTMENTS

December 31, 2008

     MULTI-CAP CORE EQUITY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 92.2%
FINANCIALS 16.6%
JPMorgan Chase & Co.		540	$	17,027
Wells Fargo & Co.		490		14,445
Bank of America Corp.		730		10,278
Senior Housing Properties Trust		450		8,064
Hudson City Bancorp, Inc.		460		7,342
Unum Group		380		7,068
AFLAC, Inc.		150		6,876
Health Care REIT, Inc.		160		6,752
Omega Healthcare Investors, Inc.		420		6,707
Ameriprise Financial, Inc.		280		6,541
Platinum Underwriters Holdings Ltd.		180		6,494
Fifth Third Bancorp		779		6,435
FNB Corp.		480		6,336
IPC Holdings Ltd.		210		6,279
Marshall & Ilsley Corp.		450		6,138
BB&T Corp.		220		6,041
Alexandria Real Estate Equities, Inc.		100		6,034
Reinsurance Group of America, Inc.		140		5,995
Entertainment Properties Trust		200		5,960
MFA Mortgage Investments, Inc.		999		5,884
Axis Capital Holdings Ltd.		200		5,824
Discover Financial Services		610		5,813
Agree Realty Corp.		320		5,802
Kilroy Realty Corp.		170		5,688
Transatlantic Holdings, Inc.		140		5,608
Hanover Insurance Group, Inc.		130		5,586
Prospect Capital Corp.		460		5,506
First Horizon National Corp.		520		5,496
American Financial Group, Inc.		240		5,491
State Auto Financial Corp.		180		5,411
Safety Insurance Group, Inc.		140		5,328
Camden Property Trust		170		5,328
Hercules Technology Growth Capital, Inc.		670		5,306
Dollar Financial Corp.*		510		5,253
Harleysville National Corp.		360		5,198
Cogdell Spencer, Inc.		550		5,148
Capital One Financial Corp.		160		5,102
Assurant, Inc.		170		5,100
Sanders Morris Harris Group Inc.		829		4,966
Oriental Financial Group		749		4,531
Huntington Bancshares, Inc.		590		4,519
Associated Estates Realty Corp.		490		4,474
Citigroup, Inc.		660		4,429
Annaly Capital Management, Inc.		260		4,126
Aspen Insurance Holdings Ltd.		170		4,123
Capstead Mortgage Corp.		350		3,770
Chubb Corp.		70		3,570
Peoples Bancorp, Inc.		180		3,443
Wachovia Corp.		610		3,379
Legg Mason, Inc.		150		3,287
WesBanco, Inc.		120		3,265

			MARKET
	SHARES		VALUE
Post Properties, Inc.		190	$	3,135
Unitrin, Inc.		180		2,869
International Assets Holding Corp.*		320		2,746
Weingarten Realty Investors		130		2,690
PS Business Parks, Inc.		60		2,680
World Acceptance Corp.*		130		2,569
Citizens & Northern Corp.		130		2,568
CNA Surety Corp.*		130		2,496
PNC Financial Services Group, Inc.		50		2,450
Fidelity National Financial, Inc. — Class A		130		2,308
Extra Space Storage, Inc.		220		2,270
Santander BanCorp		180		2,248
Assured Guaranty Ltd.		190		2,166
MetLife, Inc.		60		2,092
CME Group, Inc.		10		2,081
NYSE Euronext		70		1,917
East-West Bancorp, Inc.		120		1,916
MGIC Investment Corp.		460		1,601
Simon Property Group, Inc.		30		1,594
Evercore Partners, Inc. — Class A		120		1,499
First Financial Holdings, Inc.		60		1,214
UCBH Holdings, Inc.		170		1,170
Knight Capital Group, Inc. — Class A*		70		1,131
Urstadt Biddle Properties, Inc.		70		1,115
Pinnacle Financial Partners, Inc.*		30		894
U.S. Bancorp		30		750
CNA Financial Corp.		40		658
Cedar Shopping Centers, Inc.		80		566
Anworth Mortgage Asset Corp.		70		450
Franklin Street Properties Corp., Inc.		10		148
E*Trade Financial Corp.*		120		138
American International Group, Inc.		70		110
Total Financials				356,805
INFORMATION TECHNOLOGY 14.8%
International Business Machines Corp.		190		15,990
Hewlett-Packard Co.		370		13,427
Microsoft Corp.		540		10,498
Apple, Inc.*		110		9,388
Oracle Corp.*		460		8,156
CA, Inc.		390		7,227
Automatic Data Processing, Inc.		180		7,081
Interwoven, Inc.*		520		6,552
Analog Devices, Inc.		340		6,467
Google, Inc. — Class A*		21		6,461
Parametric Technology Corp.*		490		6,198
Linear Technology Corp.		280		6,194
Alliance Data Systems Corp.*		130		6,049
Symantec Corp.*		440		5,949
Corning, Inc.		620		5,909
CACI International, Inc. — Class A*		130		5,862
Plexus Corp.*		340		5,763
Fidelity National Information Services, Inc.		350		5,694

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    17

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     MULTI-CAP CORE EQUITY FUND

			MARKET
	SHARES		VALUE
Marvell Technology Group Ltd.*		839	$	5,596
CommScope, Inc.*		360		5,594
PC-Tel, Inc.		850		5,584
Starent Networks Corp.*		460		5,488
Mantech International Corp. — Class A*		100		5,419
Multi-Fineline Electronix, Inc.*		460		5,377
Diebold, Inc.		190		5,337
TeleCommunication Systems, Inc. — Class A*		620		5,326
Jabil Circuit, Inc.		789		5,326
FactSet Research Systems Inc.		120		5,309
Motorola, Inc.		1,190		5,272
Western Digital Corp.*		460		5,267
Heartland Payment Systems, Inc.		300		5,250
Sohu.com, Inc.*		110		5,207
Silicon Laboratories, Inc.*		210		5,204
i2 Technologies, Inc.*		809		5,170
Transmeta Corp.*		280		5,096
Smith Micro Software, Inc.*		899		4,998
Black Box Corp.		190		4,963
Cisco Systems, Inc.*		300		4,890
United Online, Inc.		800		4,856
Intel Corp.		330		4,838
Radisys Corp.*		849		4,695
Take-Two Interactive Software, Inc.		610		4,612
Amphenol Corp.		190		4,556
Ingram Micro, Inc. — Class A*		330		4,419
Juniper Networks, Inc.*		250		4,377
Skyworks Solutions, Inc.*		749		4,149
Accenture Ltd. — Class A		120		3,935
Affiliated Computer Services, Inc. — Class A*		70		3,216
OSI Systems Inc.*		230		3,185
Bel Fuse, Inc. — Class B		140		2,968
Hughes Communications, Inc.*		170		2,710
Akamai Technologies, Inc.*		170		2,565
Netscout Systems, Inc.*		290		2,500
NCR Corp.*		170		2,404
Harris Corp.		60		2,283
NCI, Inc.*		70		2,109
Computer Sciences Corp.*		50		1,757
MEMC Electronic Materials, Inc.*		120		1,714
Intersil Corp. — Class A		170		1,562
InfoSpace, Inc.		200		1,510
VistaPrint Ltd.*		70		1,303
Teletech Holdings, Inc.*		110		919
SYNNEX Corp.*		70		793
JDS Uniphase Corp.*		110		402
Qualcomm, Inc.		10		358
QLogic Corp.*		10		134
Total Information Technology				319,367

			MARKET
	SHARES		VALUE
HEALTH CARE 13.3%
Abbott Laboratories		240	$	12,809
Johnson & Johnson, Inc.		190		11,368
Bristol-Myers Squibb Co.		410		9,532
Eli Lilly & Co.		210		8,457
Baxter International, Inc.		150		8,038
Myriad Genetics, Inc.*		110		7,289
Becton, Dickinson & Co.		100		6,839
AmerisourceBergen Corp.		190		6,775
Pfizer, Inc.		380		6,730
Medco Health Solutions, Inc.*		160		6,706
Express Scripts, Inc.*		120		6,598
Cardinal Health, Inc.		180		6,205
Biogen Idec, Inc.*		130		6,192
Gilead Sciences, Inc.*		120		6,137
Omnicare, Inc.		220		6,107
Celgene Corp.*		110		6,081
Bio-Rad Laboratories, Inc. — Class A*		80		6,025
Viropharma, Inc.*		460		5,989
Thoratec Corp.*		180		5,848
Techne Corp.		90		5,807
Amedisys, Inc.*		140		5,788
Mylan Laboratories, Inc.*		580		5,736
Gen-Probe, Inc.*		130		5,569
Gentiva Health Services, Inc.*		190		5,559
Greatbatch, Inc.*		210		5,557
Pharmaceutical Product Development, Inc.		190		5,512
Teleflex, Inc.		110		5,511
Perrigo Co.		170		5,493
Emergency Medical Services Corp. — Class A*		150		5,491
Hologic, Inc.*		410		5,359
Emergent Biosolutions, Inc.*		200		5,222
Schering-Plough Corp.		300		5,109
Cardiac Science Corp.*		680		5,100
Computer Programs & Systems, Inc.		190		5,092
Warner Chilcott Ltd.*		350		5,075
Genzyme Corp.*		70		4,646
Cephalon, Inc.*		60		4,622
National Healthcare Corp.		90		4,558
Cubist Pharmaceuticals, Inc.*		180		4,349
Conmed Corp.*		170		4,070
Sun Healthcare Group, Inc.*		450		3,982
Healthspring, Inc.*		190		3,794
Hill-Rom Holdings, Inc.		230		3,786
AmSurg Corp.*		150		3,501
Masimo Corp.*		110		3,281
Albany Molecular Research, Inc.*		290		2,825
PDL BioPharma, Inc.		440		2,719
Sepracor, Inc.*		240		2,635
Stryker Corp.		60		2,397
Luminex Corp.*		90		1,922
eResearch Technology, Inc.*		200		1,326
Merck & Company, Inc.		40		1,216

18    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     MULTI-CAP CORE EQUITY FUND

			MARKET
	SHARES		VALUE
Amgen, Inc.*		20	$	1,155
Questcor Pharmaceuticals, Inc.*		120		1,117
Zoll Medical Corp.*		50		944
Quest Diagnostics, Inc.		10		519
Cerner Corp.*		10		385
Par Pharmaceutical Companies, Inc.*		20		268
ArthroCare Corp.*		30		143
Total Health Care				286,865
INDUSTRIALS 11.6%
General Electric Co.		700		11,340
Emerson Electric Co.		210		7,688
Lockheed Martin Corp.		90		7,567
ITT Corporation		160		7,358
Parker Hannifin Corp.		170		7,232
Union Pacific Corp.		150		7,170
Raytheon Co.		140		7,146
Burlington Northern Santa Fe Corp.		90		6,814
Northrop Grumman Corp.		150		6,756
Fluor Corp.		150		6,730
Norfolk Southern Corp.		140		6,587
Regal-Beloit Corp.		170		6,458
Hawaiian Holdings, Inc.*		999		6,374
SkyWest, Inc.		340		6,324
EMCOR Group, Inc.*		280		6,280
URS Corp.*		150		6,116
LMI Aerospace, Inc.*		530		6,026
Timken Co.		300		5,889
Continental Airlines, Inc. — Class B*		320		5,779
ABM Industries, Inc.		300		5,715
Triumph Group, Inc.		130		5,520
Kirby Corp.*		200		5,472
AGCO Corp.*		230		5,426
Federal Signal Corp.		660		5,419
SPX Corp.		130		5,272
Knoll, Inc.		580		5,232
Circor International, Inc.		190		5,225
VSE Corp.		130		5,100
Ennis Inc.		420		5,086
DXP Enterprises, Inc.*		340		4,967
Multi-Color Corp.		300		4,746
CSX Corp.		140		4,546
Dover Corp.		130		4,280
MSC Industrial Direct Co.		110		4,051
Republic Airways Holdings, Inc.*		320		3,414
CH Robinson Worldwide, Inc.		60		3,302
Manitowoc Co., Inc.		380		3,291
Valmont Industries, Inc.		50		3,068
Encore Wire Corp.		160		3,034
Textron, Inc.		200		2,774
GrafTech International Ltd.*		330		2,746
Goodrich Corp.		70		2,591
Comfort Systems USA, Inc.		230		2,452
Flowserve Corp.		40		2,060
Titan International, Inc.		200		1,650

			MARKET
	SHARES		VALUE
Joy Global, Inc.		70	$	1,602
Eaton Corp.		30		1,491
AMETEK, Inc.		40		1,208
School Specialty, Inc.*		60		1,147
Sterling Construction Company, Inc.*		60		1,112
Chart Industries, Inc.*		100		1,063
Shaw Group, Inc.*		50		1,024
Tyco International Ltd.		30		648
United Technologies Corp.		10		536
Energy Conversion Devices, Inc.*		20		504
EnerSys*		40		440
TBS International Ltd. — Class A*		40		401
Franklin Electric Company, Inc.		10		281
Genco Shipping & Trading Ltd.		10		148
Total Industrials				249,678
CONSUMER DISCRETIONARY 9.2%
Walt Disney Co.		400		9,076
Time Warner, Inc.		829		8,340
Comcast Corp. — Class A		430		7,258
H&R Block, Inc.		310		7,043
Darden Restaurants, Inc.		240		6,763
Jo-Ann Stores, Inc.*		410		6,351
McDonald’s Corp.		100		6,219
Nike, Inc. — Class B		120		6,120
Polaris Industries, Inc.		210		6,017
Staples, Inc.		330		5,914
Carnival Corp.		240		5,837
Tractor Supply Co.*		160		5,782
DeVry, Inc.		100		5,741
Family Dollar Stores, Inc.		220		5,735
Petsmart, Inc.		310		5,720
Ross Stores, Inc.		190		5,649
Polo Ralph Lauren Corp.		120		5,449
Omnicom Group, Inc.		190		5,115
Unifirst Corp.		170		5,047
P.F. Chang’s China Bistro, Inc.*		240		5,026
Core-Mark Holding Company, Inc.*		230		4,950
Johnson Controls, Inc.		270		4,903
Foot Locker, Inc.		650		4,771
DineEquity, Inc.		400		4,624
Genuine Parts Co.		120		4,543
Fred’s, Inc.		420		4,519
Fuqi International, Inc.*		690		4,319
TJX Companies, Inc.		170		3,497
Amazon.com, Inc.*		60		3,077
Genesco, Inc.*		170		2,876
True Religion Apparel, Inc.*		230		2,861
Kenneth Cole Productions, Inc. — Class A		390		2,761
Harman International Industries, Inc.		160		2,677
Pulte Homes, Inc.		230		2,514
Collective Brands, Inc.*		190		2,227
DIRECTV Group, Inc.*		90		2,062
Gaylord Entertainment Co.*		180		1,951

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    19

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     MULTI-CAP CORE EQUITY FUND

			MARKET
	SHARES		VALUE
Tupperware Brands Corp.		80	$	1,816
Life Time Fitness, Inc.*		140		1,813
Citi Trends, Inc.*		120		1,766
Apollo Group, Inc. — Class A*		20		1,532
Exide Technologies*		240		1,270
Whirlpool Corp.		30		1,241
Brookfield Homes Corp.		220		950
Best Buy Company, Inc.		30		843
Finish Line, Inc. — Class A		140		784
Stage Stores, Inc.		90		743
priceline.com, Inc.*		10		737
Fuel Systems Solutions, Inc.*		20		655
Group 1 Automotive, Inc.		60		646
WMS Industries, Inc.*		10		269
Wolverine World Wide, Inc.		10		210
Total Consumer Discretionary				198,609
ENERGY 8.4%
Exxon Mobil Corp.		451		36,003
Chevron Corp.		210		15,534
Murphy Oil Corp.		170		7,539
Noble Corp.		290		6,406
Transocean Ltd.*		130		6,142
Plains Exploration & Production Co.*		260		6,042
World Fuel Services Corp.		160		5,920
Diamond Offshore Drilling, Inc.		100		5,894
Nordic American Tanker Shipping		170		5,738
Overseas Shipholding Group, Inc.		130		5,474
Frontline Ltd.		180		5,330
Peabody Energy Corp.		230		5,233
Williams Companies, Inc.		340		4,923
Delek US Holdings, Inc.		919		4,862
Hornbeck Offshore Services, Inc.*		270		4,412
Southwestern Energy Co.*		150		4,346
Valero Energy Corp.		200		4,328
Alpha Natural Resources, Inc.*		240		3,886
Massey Energy Co.		280		3,861
Arch Coal, Inc.		230		3,747
ConocoPhillips		70		3,626
Chesapeake Energy Corp.		220		3,557
Schlumberger Ltd.		80		3,386
Whiting Petroleum Corp.*		100		3,346
McMoRan Exploration Co.*		340		3,332
Mariner Energy, Inc.*		300		3,060
Pioneer Drilling Co.*		470		2,618
ENSCO International, Inc.		80		2,271
Oil States International, Inc.*		110		2,056
Willbros Group, Inc.*		230		1,948
Cimarex Energy Co.		70		1,875
Tesoro Corp.		120		1,580
Swift Energy Co.*		90		1,513
Encore Acquisition Co.*		20		510
Superior Well Services, Inc.*		10		100
Total Energy				180,398

			MARKET
	SHARES		VALUE
CONSUMER STAPLES 6.9%
Procter & Gamble Co.		300	$	18,546
Wal-Mart Stores, Inc.		190		10,652
Altria Group, Inc.		490		7,379
Bunge Ltd.		140		7,248
Costco Wholesale Corp.		130		6,825
Archer-Daniels-Midland Co.		230		6,631
Kroger Co.		240		6,338
TreeHouse Foods, Inc.*		220		5,993
Nash Finch Co.		130		5,836
Chiquita Brands International, Inc.*		390		5,764
Central Garden and Pet Co. — Class A*		960		5,664
Pantry, Inc.*		260		5,577
Cal-Maine Foods, Inc.		190		5,453
Coca-Cola Co.		120		5,432
Zhongpin, Inc.*		450		5,400
PepsiAmericas, Inc.		260		5,294
Philip Morris International, Inc.		120		5,221
Calavo Growers, Inc.		440		5,060
Tyson Foods, Inc. — Class A		560		4,906
Susser Holdings Corp.*		330		4,386
PepsiCo, Inc.		70		3,834
Coca-Cola Bottling Company Consolidated		80		3,677
Village Super Market		60		3,443
Sysco Corp.		110		2,523
China Sky One Medical, Inc.*		60		959
Nu Skin Enterprises, Inc.		60		626
Spectrum Brands, Inc.*		190		17
Total Consumer Staples				148,684
UTILITIES 5.3%
NRG Energy, Inc.*		299		6,976
DTE Energy Co.		189		6,742
Entergy Corp.		80		6,650
Northeast Utilities		260		6,255
CenterPoint Energy, Inc.		490		6,184
CH Energy Group, Inc.		120		6,167
Reliant Energy, Inc.*		1,019		5,890
Unisource Energy Corp.		200		5,872
NorthWestern Corp.		250		5,867
Oneok, Inc.		200		5,824
Central Vermont Public Service Corp.		240		5,726
OGE Energy Corp.		220		5,671
UGI Corp.		230		5,617
Great Plains Energy, Inc.		290		5,606
Atmos Energy Corp.		230		5,451
Pepco Holdings, Inc.		300		5,328
Vectren Corp.		210		5,252
CMS Energy Corp.		490		4,954
Alliant Energy Corp.		140		4,085
Questar Corp.		40		1,308
AES Corp.*		120		989
NV Energy, Inc.		99		979

20    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     MULTI-CAP CORE EQUITY FUND

			MARKET
	SHARES		VALUE
Avista Corp.		50	$	969
PNM Resources, Inc.		50		504
Dynegy Inc.*		69		138
Total Utilities				115,004
MATERIALS 3.9%
Innophos Holdings, Inc.		350		6,933
International Paper Co.		510		6,018
Bway Holding Co.*		740		5,890
Celanese Corp.		440		5,469
A. Schulman, Inc.		320		5,440
Cabot Corp.		350		5,355
Glatfelter		570		5,301
Compass Minerals International, Inc.		90		5,279
Stepan Co.		110		5,169
Schweitzer-Mauduit International, Inc.		230		4,605
Greif, Inc. — Class A		130		4,346
United States Steel Corp.		90		3,348
The Mosaic Co.		90		3,114
Steel Dynamics, Inc.		240		2,683
Ashland, Inc.		230		2,417
Koppers Holdings, Inc.		90		1,946
Eastman Chemical Co.		60		1,903
OM Group, Inc.*		90		1,900
CF Industries Holdings, Inc.		30		1,475
AK Steel Holding Corp.		140		1,305
Huntsman Corp.		320		1,101
Terra Industries, Inc.		50		834
Owens-Illinois, Inc.*		30		820
Cliffs Natural Resources Inc		30		768
Intrepid Potash, Inc.*		10		208
Total Materials				83,627
TELECOMMUNICATION SERVICES 2.2%
AT&T, Inc.		480		13,680
Verizon Communications, Inc.		360		12,204
Embarq Corp.		190		6,832
Syniverse Holdings, Inc.*		550		6,567
Shenandoah Telecommunications Co.		200		5,610
NII Holdings, Inc. — Class B*		160		2,909
Total Telecommunication Services				47,802
Total Common Stocks
(Cost $2,032,366)				1,986,839

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 6.5%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	36,127	$	36,127
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		36,127		36,127
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		36,127		36,127
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		32,607		32,607
Total Repurchase Agreements (Cost $140,988)				140,988
Total Investments 98.7% (Cost $2,173,354)			$	2,127,827
Other Assets in Excess of Liabilities – 1.3%			$	28,425
Net Assets – 100.0%			$	2,156,252
			Unrealized
		Contracts		Gain
FUTURES CONTRACTS PURCHASED
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $53,430)		1	$	2,345
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $49,300)		1		1,038
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $45,025)		1		758
(Total Aggregate Market Value of Contracts $147,755)			$	4,141

*	Non-Income Producing Security.
†	Repurchase Agreements — See Note 6.
	REIT — Real Estate Investment Trust.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    21

SCHEDULE OF INVESTMENTS

December 31, 2008

     SECTOR ROTATION FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 97.9%
CONSUMER STAPLES 25.6%
Procter & Gamble Co.		44,900	$	2,775,718
Wal-Mart Stores, Inc.		34,000		1,906,040
Unilever NV		48,916		1,200,888
Colgate-Palmolive Co.		17,300		1,185,742
Kraft Foods, Inc.		43,617		1,171,117
Kimberly-Clark Corp.		18,052		952,063
CVS Caremark Corp.		27,000		775,980
Clorox Co.		10,731		596,214
General Mills, Inc.		9,800		595,350
Walgreen Co.		23,300		574,811
Costco Wholesale Corp.		10,800		567,000
Kroger Co.		20,400		538,764
Archer-Daniels-Midland Co.		18,600		536,238
Kellogg Co.		11,200		491,120
Safeway, Inc.		17,700		420,729
Sysco Corp.		17,900		410,626
Church & Dwight Company, Inc.		7,061		396,263
Cadbury PLC — SP ADR		9,914		353,632
H.J. Heinz Co.		9,100		342,160
Energizer Holdings, Inc.*		5,900		319,426
Campbell Soup Co.		10,634		319,126
ConAgra Foods, Inc.		13,100		216,150
Sara Lee Corp.		20,500		200,695
Bunge Ltd.		3,700		191,549
SUPERVALU, INC.		12,600		183,960
BJ’s Wholesale Club, Inc.*		5,200		178,152
Hershey Co.		4,900		170,226
Ruddick Corp.		5,100		141,015
WD-40 Co.		4,831		136,669
Winn-Dixie Stores, Inc.*		8,000		128,800
Hormel Foods Corp.		4,057		126,092
Casey’s General Stores, Inc.		5,500		125,235
McCormick & Company, Inc.		3,600		114,696
Whole Foods Market, Inc.		11,000		103,840
United Natural Foods, Inc.*		5,700		101,574
Total Consumer Staples				18,547,660
HEALTH CARE 24.2%
Genentech, Inc.*		26,600		2,205,406
Amgen, Inc.*		31,300		1,807,575
Gilead Sciences, Inc.*		32,600		1,667,164
Celgene Corp.*		20,400		1,127,712
Genzyme Corp.*		14,500		962,365
Biogen Idec, Inc.*		18,600		885,918
Johnson & Johnson, Inc.		10,600		634,198
Novartis AG — SP ADR		11,400		567,264
Cephalon, Inc.*		7,200		554,688
Pfizer, Inc.		30,500		540,155
Vertex Pharmaceuticals, Inc.*		16,900		513,422
GlaxoSmithKline PLC — SP ADR		13,000		484,510

			MARKET
	SHARES		VALUE
Sanofi-Aventis — SP ADR		14,400	$	463,104
Abbott Laboratories		8,400		448,308
Merck & Company, Inc.		13,500		410,400
Myriad Genetics, Inc.*		6,100		404,186
AstraZeneca PLC — SP ADR		9,300		381,579
Alexion Pharmaceuticals, Inc.*		10,400		376,376
OSI Pharmaceuticals, Inc.*		9,000		351,450
Wyeth		9,300		348,843
Onyx Pharmaceuticals, Inc.*		10,100		345,016
Eli Lilly & Co.		8,500		342,295
Bristol-Myers Squibb Co.		14,300		332,475
BioMarin Pharmaceuticals, Inc.*		17,800		316,840
Teva Pharmaceutical Industries Ltd. — SP ADR		6,700		285,219
Schering-Plough Corp.		15,000		255,450
United Therapeutics Corp.*		3,700		231,435
Allergan, Inc.		4,500		181,440
Shire PLC — SP ADR		3,200		143,296
Total Health Care				17,568,089
UTILITIES 16.0%
Questar Corp.		22,145		723,920
Equitable Resources, Inc.		19,863		666,404
Dominion Resources, Inc.		17,010		609,638
Public Service Enterprise Group, Inc.		17,994		524,885
PG&E Corp.		13,203		511,088
Oneok, Inc.		16,515		480,917
UGI Corp.		19,306		471,453
AGL Resources, Inc.		14,406		451,628
Sempra Energy		10,145		432,481
Piedmont Natural Gas Co.		13,526		428,368
Consolidated Edison, Inc.		10,976		427,296
National Fuel Gas Co.		13,474		422,140
Atmos Energy Corp.		17,615		417,476
Energen Corp.		13,612		399,240
Xcel Energy, Inc.		21,100		391,405
New Jersey Resources Corp.		9,912		390,037
WGL Holdings, Inc.		11,643		380,610
Ameren Corp.		10,851		360,904
DTE Energy Co.		8,943		318,997
Nicor, Inc.		9,052		314,466
Northwest Natural Gas Co.		6,746		298,376
Wisconsin Energy Corp.		7,010		294,280
CenterPoint Energy, Inc.		22,504		284,000
NSTAR		7,720		281,703
SCANA Corp.		7,819		278,356
Laclede Group, Inc.		5,899		276,309
Puget Energy, Inc.		9,007		245,621
Integrys Energy Group, Inc.		5,645		242,622
Alliant Energy Corp.		8,189		238,955
Total Utilities				11,563,575

22    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     SECTOR ROTATION FUND

			MARKET
	SHARES		VALUE
CONSUMER DISCRETIONARY 15.8%
Apollo Group, Inc. — Class A*		23,300	$	1,785,246
H&R Block, Inc.		65,899		1,497,225
DeVry, Inc.		17,900		1,027,639
ITT Educational Services, Inc.*		10,500		997,290
Strayer Education, Inc.		4,100		879,081
Weight Watchers International, Inc.		26,500		779,630
Career Education Corp.*		36,099		647,616
Corinthian Colleges, Inc.*		37,100		607,327
Service Corporation International		109,499		544,210
Capella Education Co.*		8,899		522,905
Hillenbrand, Inc.		31,202		520,450
Matthews International Corp. — Class A		14,099		517,151
American Public Education, Inc.*		10,600		394,214
Sotheby’s		42,500		377,825
K12 Inc.*		20,093		376,744
Total Consumer Discretionary				11,474,553
TELECOMMUNICATION SERVICES 8.2%
AT&T, Inc.		55,100		1,570,350
Verizon Communications, Inc.		35,900		1,217,010
Deutsche Telekom AG — SP ADR		68,400		1,046,520
Qwest Communications International, Inc.		88,200		321,048
Embarq Corp.		7,700		276,892
Windstream Corp.		27,100		249,320
Tele Norte Leste Participacoes SA — ADR		16,200		225,504
Frontier Communications Corp.		22,900		200,146
CenturyTel, Inc.		7,100		194,043
tw telecom Inc.*		16,900		143,143
NTELOS Holdings Corp.		5,000		123,300
Level 3 Communications, Inc.*		158,300		110,810
Cbeyond, Inc.*		5,000		79,900
Global Crossing*		10,000		79,400
Iowa Telecommunications Services, Inc.		5,300		75,684
Total Telecommunication Services				5,913,070

			MARKET
	SHARES		VALUE
INDUSTRIALS 8.1%
Delta Air Lines, Inc.*		86,684	$	993,399
Southwest Airlines Co.		103,838		895,084
AMR Corp.*		56,211		599,771
Continental Airlines, Inc. — Class B*		27,459		495,910
JetBlue Airways Corp.*		69,649		494,508
UAL Corp.		38,000		418,760
SkyWest, Inc.		19,599		364,541
Alaska Air Group, Inc.*		12,250		358,312
Allegiant Travel Co.*		7,075		343,633
Copa Holdings SA		10,911		330,822
US Airways Group, Inc.*		42,503		328,548
AirTran Holdings, Inc.*		54,971		244,071
Total Industrials				5,867,359
Total Common Stocks (Cost $70,409,983)				70,934,306
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.3%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	929,453		929,453
Total Repurchase Agreement (Cost $929,453)				929,453
Total Investments 99.2% (Cost $71,339,436)			$	71,863,759
Other Assets in Excess of Liabilities – 0.8%			$	575,020
Net Assets – 100.0%			$	72,438,779

*	Non-Income Producing Security.
†	Repurchase Agreements — See Note 6.
	ADR — American Depository Receipt.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    23

SCHEDULE OF INVESTMENTS

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 34.5%
FINANCIALS 9.0%
Sovereign Bancorp, Inc.*		127,180	$	378,995
Wachovia Corp.		53,130		294,340
Nationwide Financial Services, Inc.		5,600		292,376
Merrill Lynch & Co., Inc.		24,380		283,783
National City Corp.		147,930		267,753
Castlepoint Holdings Ltd.		14,870		201,637
Hanover Insurance Group, Inc.		1,970		84,651
Travelers Companies, Inc.		1,800		81,360
Arthur J. Gallagher & Co.		2,510		65,034
Aon Corp.		1,330		60,754
Annaly Capital Management, Inc.		3,490		55,386
Transatlantic Holdings, Inc.		1,350		54,081
MetLife, Inc.		1,430		49,850
JPMorgan Chase & Co.		1,540		48,556
Nationwide Health Properties, Inc.		1,450		41,644
People’s United Financial, Inc.		2,090		37,265
Chubb Corp.		570		29,070
ACE Ltd.§		500		26,460
Capital One Financial Corp.		820		26,150
Goldman Sachs Group, Inc.		300		25,317
Ameriprise Financial, Inc.		990		23,126
ProLogis		1,620		22,502
Invesco Ltd.		1,550		22,382
Allstate Corp.		660		21,622
HCP, Inc.		760		21,105
Valley National Bancorp		990		20,047
NYSE Euronext		730		19,987
Genpact Ltd.*		2,430		19,975
Axis Capital Holdings Ltd.		670		19,510
Allied World Assurance Company Holdings Ltd		460		18,676
PartnerRe Ltd.		250		17,817
W.R. Berkley Corp.		540		16,740
Waddell & Reed Financial, Inc. — Class A		910		14,069
Charles Schwab Corp.		850		13,744
IntercontinentalExchange, Inc.*		160		13,190
Everest Re Group Ltd.		170		12,944
Jones Lang LaSalle, Inc.		450		12,465
Prudential Financial, Inc.		400		12,104
Cincinnati Financial Corp.		410		11,919
CB Richard Ellis Group, Inc. — Class A*		2,750		11,880
Macerich Co.		640		11,622
Host Hotels & Resorts, Inc.		1,530		11,582
Unum Group		610		11,346
Federated Investors, Inc. — Class B		570		9,667
State Street Corp.		220		8,653
Protective Life Corp.		580		8,323
Comerica, Inc.		410		8,139
AmeriCredit Corp.*		1,029		7,862
Webster Financial Corp.		540		7,441

			MARKET
	SHARES		VALUE
Assurant, Inc.		230	$	6,900
American Financial Group, Inc.		300		6,864
Stancorp Financial Group, Inc.		160		6,683
Janus Capital Group, Inc.		820		6,585
Hartford Financial Services Group, Inc.		390		6,404
Principal Financial Group, Inc.		250		5,643
SunTrust Banks, Inc.		190		5,613
Hospitality Properties Trust		370		5,502
Regions Financial Corp.		690		5,492
TD Ameritrade Holding Corp.*		370		5,273
Loews Corp.		170		4,803
CBL & Associates Properties, Inc.		670		4,355
CME Group, Inc.		20		4,162
Lincoln National Corp.		220		4,145
iStar Financial Inc.		1,840		4,103
Genworth Financial, Inc. — Class A		1,370		3,877
American Capital Ltd.		1,190		3,856
SEI Investments Co.		220		3,456
Developers Diversified Realty Corp.		690		3,367
American International Group, Inc.		2,090		3,281
Affiliated Managers Group, Inc.*		70		2,934
SL Green Realty Corp.		100		2,590
CIT Group, Inc.		520		2,361
Aircastle Ltd.		470		2,247
Boston Properties, Inc.		40		2,200
General Growth Properties, Inc.		1,580		2,038
Legg Mason, Inc.		70		1,534
First Marblehead Corp.*		1,110		1,432
Discover Financial Services		140		1,334
AvalonBay Communities, Inc.		20		1,212
Taubman Centers, Inc.		40		1,018
BB&T Corp.		30		824
American National Insurance Co.		10		737
CNA Financial Corp.		40		658
XL Capital Ltd.		110		407
East-West Bancorp, Inc.		10		160
Eaton Vance Corp.		1		21
TFS Financial Corp		1		13
Total Financials				2,958,985
HEALTH CARE 5.7%
Genentech, Inc.*§		3,670		304,280
Datascope Corp.§		5,640		294,634
Mentor Corp.§		4,910		151,866
Teva Pharmaceutical Industries Ltd. — SP ADR§		2,599		110,639
Perrigo Co.§		2,590		83,683
C.R. Bard, Inc.§		990		83,417
King Pharmaceuticals, Inc.*§		5,250		55,755
Celgene Corp.*§		930		51,410
LifePoint Hospitals, Inc.*§		1,980		45,223
Thermo Fisher Scientific, Inc.*§		1,280		43,610
Hill-Rom Holdings, Inc.§		2,530		41,644
Life Technologies Corp.*		1,704		39,720
WellPoint, Inc.*§		860		36,232

24    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
AmerisourceBergen Corp.§		920	$	32,807
ResMed, Inc.*§		870		32,608
Lincare Holdings, Inc.*§		1,160		31,239
Forest Laboratories, Inc.*§		1,210		30,819
Millipore Corp.*§		560		28,851
Universal Health Services, Inc. — Class B§		750		28,177
Cardinal Health, Inc.§		710		24,474
Baxter International, Inc.§		400		21,436
Charles River Laboratories International, Inc.*§		800		20,960
Biogen Idec, Inc.*§		440		20,957
UnitedHealth Group, Inc.		771		20,509
Vertex Pharmaceuticals, Inc.*§		640		19,443
DENTSPLY International, Inc.§		670		18,921
Amgen, Inc.*		280		16,170
Aetna, Inc.		500		14,250
Humana, Inc.*		370		13,794
Health Net, Inc.*		1,100		11,979
Kinetic Concepts, Inc.*		590		11,316
Inverness Medical Innovations, Inc.*		590		11,157
Beckman Coulter, Inc.§		240		10,546
Intuitive Surgical, Inc.*§		70		8,889
Coventry Health Care, Inc.*		581		8,645
Abraxis BioScience, Inc.*§		128		8,438
CIGNA Corp.		480		8,088
Zimmer Holdings, Inc.*§		200		8,084
Community Health Systems, Inc.*§		500		7,290
Inverness Medical Innovations*		50		6,124
Pediatrix Medical Group, Inc.*		190		6,023
Endo Pharmaceuticals Holdings, Inc.*§		230		5,952
Brookdale Senior Living, Inc.		1,010		5,636
Johnson & Johnson, Inc.§		90		5,385
Novartis AG — SP ADR§		100		4,976
Wyeth§		130		4,876
McKesson Corp.		110		4,260
Sanofi-Aventis — SP ADR§		130		4,181
GlaxoSmithKline PLC — SP ADR§		110		4,100
Myriad Genetics, Inc.*§		60		3,976
Abbott Laboratories§		70		3,736
AstraZeneca PLC — SP ADR§		80		3,282
Alexion Pharmaceuticals, Inc.*§		90		3,257
OSI Pharmaceuticals, Inc.*§		80		3,124
Onyx Pharmaceuticals, Inc.*§		90		3,074
Bristol-Myers Squibb Co.§		130		3,023
Eli Lilly & Co.		70		2,819
United Therapeutics Corp.*§		30		1,877
Quest Diagnostics, Inc.§		30		1,557
Shire PLC — SP ADR§		30		1,343
BioMarin Pharmaceuticals, Inc.*		1		18
Total Health Care				1,894,559
UTILITIES 4.0%
Constellation Energy Group, Inc.		11,610		291,295
Puget Energy, Inc.§		10,560		287,971

			MARKET
	SHARES		VALUE
Pepco Holdings, Inc.§		4,910	$	87,202
American Water Works Company, Inc.§		3,850		80,388
DPL, Inc.§		3,340		76,286
UGI Corp.§		3,030		73,993
Pinnacle West Capital Corp.		1,690		54,300
Alliant Energy Corp.		1,840		53,691
Atmos Energy Corp.		1,720		40,764
AES Corp.*		3,750		30,900
DTE Energy Co.§		850		30,319
Great Plains Energy, Inc.§		1,550		29,961
TECO Energy, Inc.§		1,930		23,835
National Fuel Gas Co.§		740		23,184
NV Energy, Inc.		2,310		22,846
Edison International		560		17,987
PG&E Corp.§		461		17,845
Mirant Corp.*		740		13,964
SCANA Corp.§		290		10,324
Oneok, Inc.§		330		9,610
Questar Corp.§		190		6,211
Dominion Resources, Inc.§		150		5,376
Energen Corp.§		170		4,986
AGL Resources, Inc.§		130		4,076
Consolidated Edison, Inc.		100		3,893
Sempra Energy§		90		3,837
Piedmont Natural Gas Co.§		120		3,800
New Jersey Resources Corp.§		90		3,542
WGL Holdings, Inc.§		100		3,269
Nicor, Inc.§		80		2,779
Northwest Natural Gas Co.§		60		2,654
Laclede Group, Inc.§		50		2,342
Integrys Energy Group, Inc.§		50		2,149
Wisconsin Energy Corp.§		50		2,099
Public Service Enterprise Group, Inc.§		20		583
Exelon Corp.§		10		556
Equitable Resources, Inc.		1		34
PPL Corp.§		1		31
Reliant Energy, Inc.*		3		17
Total Utilities				1,328,899
CONSUMER DISCRETIONARY 3.5%
Landry’s Restaurants, Inc.§		24,865		288,434
DreamWorks Animation SKG, Inc. — Class A*§		3,370		85,126
DIRECTV Group, Inc.*§		2,700		61,857
Hasbro, Inc.§		2,070		60,382
Burger King Holdings, Inc.§		1,750		41,790
Regal Entertainment Group — Class A§		3,920		40,023
DeVry, Inc.§		660		37,891
Comcast Corp. — Class A§		2,080		35,110
HSN, Inc.*§		4,300		31,261
RadioShack Corp.§		1,790		21,373
John Wiley & Sons, Inc. — Class A§		600		21,348
The Gap, Inc.§		1,350		18,076
VF Corp.§		330		18,074

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    25

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
Time Warner, Inc.§		1,760	$	17,706
Weight Watchers International, Inc.§		590		17,358
Liberty Media Corp — Capital*		3,680		17,333
Tiffany & Co.§		730		17,250
Liberty Global, Inc. — Class A*§		960		15,283
Mohawk Industries, Inc.*§		340		14,610
Dick’s Sporting Goods, Inc.*§		950		13,404
Carnival Corp.§		520		12,646
Centex Corp.§		1,170		12,449
Amazon.com, Inc.*§		220		11,282
Interval Leisure Group, Inc.*§		1,810		9,756
Service Corporation International§		1,830		9,095
Royal Caribbean Cruises Ltd.		660		9,075
Garmin Ltd.		460		8,818
Ticketmaster Entertainment, Inc.*§		1,360		8,731
BorgWarner, Inc.§		400		8,708
D.R. Horton, Inc.		1,180		8,343
Petsmart, Inc.§		440		8,118
Whirlpool Corp.§		180		7,443
Central European Media Enterprises Ltd. — Class A*§		340		7,385
Expedia, Inc.*§		881		7,259
Autoliv, Inc.§		320		6,867
Penske Auto Group, Inc.§		870		6,682
priceline.com, Inc.*§		90		6,629
J.C. Penney Company, Inc.§		330		6,501
CBS Corp.		760		6,224
Gannett Co., Inc.		750		6,000
Barnes & Noble, Inc.§		400		6,000
Big Lots, Inc.*§		410		5,941
Clear Channel Outdoor Holdings, Inc. — Class A*		960		5,904
Corinthian Colleges, Inc.*§		330		5,402
CTC Media, Inc.*§		1,090		5,232
Snap-On, Inc.§		130		5,119
Liberty Media Corp — Interactive*		1,520		4,742
Capella Education Co.*§		80		4,701
Hillenbrand, Inc.§		280		4,670
TRW Automotive Holdings Corp.*		1,280		4,608
Urban Outfitters, Inc.*§		300		4,494
Matthews International Corp. — Class A§		120		4,402
Abercrombie & Fitch Co. — Class A		190		4,383
AnnTaylor Stores Corp.*		700		4,039
Meredith Corp.		230		3,938
K12 Inc.*§		180		3,375
American Public Education, Inc.*§		90		3,347
Sotheby’s§		370		3,289
OfficeMax Inc.		390		2,980
ITT Educational Services, Inc.*§		30		2,849
Williams-Sonoma, Inc.		360		2,830
Phillips-Van Heusen Corp.§		100		2,013
Chipotle Mexican Grill, Inc. — Class A*		30		1,859
Sears Holdings Corp.*		40		1,555

			MARKET
	SHARES		VALUE
O’Reilly Automotive, Inc.*§		50	$	1,537
Harman International Industries, Inc.		70		1,171
Orient-Express Hotels Ltd. — Class A		150		1,149
KB HOME		80		1,090
Chico’s FAS, Inc.*		220		920
News Corp. — Class A§		60		545
RH Donnelley Corp.*		80		30
Total Consumer Discretionary				1,145,814
INFORMATION TECHNOLOGY 2.7%
NDS Group PLC — SP ADR*§		5,856		335,783
Synopsys, Inc.*§		3,860		71,487
Applied Materials, Inc.§		3,260		33,024
Cypress Semiconductor Corp.*§		6,400		28,608
Jabil Circuit, Inc.		3,730		25,177
BMC Software, Inc.*§		900		24,219
Activision Blizzard Inc.*§		2,500		21,600
WebMD Health Corp.*§		900		21,231
Zebra Technologies Corp. — Class A*§		1,030		20,868
National Instruments Corp.§		800		19,488
Computer Sciences Corp.*§		540		18,976
Western Digital Corp.*§		1,590		18,206
Arrow Electronics, Inc.*		830		15,637
EchoStar Corp. — Class A*§		1,050		15,614
Hewlett-Packard Co.§		430		15,605
Ingram Micro, Inc. — Class A*§		1,070		14,327
Apple, Inc.*§		160		13,656
Seagate Technology		2,920		12,936
MEMC Electronic Materials, Inc.*§		900		12,852
Affiliated Computer Services, Inc. — Class A*§		260		11,947
Nvidia Corp.*		1,461		11,790
Avnet, Inc.*§		640		11,654
Xerox Corp.		1,450		11,557
Vishay Intertechnology, Inc.*		3,350		11,457
CommScope, Inc.*§		710		11,033
Fidelity National Information Services, Inc.§		670		10,901
Novellus Systems, Inc.*§		830		10,242
EMC Corp*§		900		9,423
Cadence Design Systems, Inc.*		2,570		9,406
Fairchild Semiconductor International, Inc.*		1,350		6,602
Sun Microsystems, Inc.*		1,630		6,227
Intersil Corp. — Class A§		670		6,157
Micron Technology, Inc.*		1,980		5,227
Convergys Corp.*		730		4,679
SanDisk Corp.*		480		4,608
VMware, Inc.*		180		4,264
Acxiom Corp.		463		3,755
KLA-Tencor Corp.		141		3,072
Molex, Inc.§		190		2,753
ADC Telecommunications, Inc.*		470		2,571
Broadridge Financial Solutions, Inc.§		190		2,383

26    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
Lender Processing Services, Inc.§		80	$	2,356
Lexmark International, Inc.*		80		2,152
ANSYS, Inc.*§		60		1,673
Corning, Inc.		130		1,239
Amphenol Corp.§		50		1,199
Ciena Corp.*§		121		811
NCR Corp.*		2		28
Lam Research Corp.*		1		21
Total Information Technology				910,481
CONSUMER STAPLES 2.6%
UST, Inc.§		4,090		283,764
BJ’s Wholesale Club, Inc.*§		2,370		81,196
Alberto-Culver Co.		2,690		65,932
Del Monte Foods Co.		6,220		44,411
Church & Dwight Co., Inc.§		740		41,529
Herbalife Ltd.§		1,520		32,954
PepsiAmericas, Inc.§		1,480		30,133
Procter & Gamble Co.§		400		24,728
Dr Pepper Snapple Group, Inc.*§		1,400		22,750
SUPERVALU, INC.		1,260		18,396
Hansen Natural Corp.*§		540		18,106
Safeway, Inc.		760		18,065
Wal-Mart Stores, Inc.§		300		16,818
NBTY, Inc.*§		960		15,024
Bunge Ltd.§		270		13,978
Reynolds American, Inc.§		340		13,705
Pepsi Bottling Group, Inc.§		560		12,606
Bare Escentuals, Inc.*		2,380		12,447
Unilever NV§		430		10,556
Kraft Foods, Inc.§		330		8,860
Kimberly-Clark Corp.§		160		8,438
Molson Coors Brewing Co. — Class B§		170		8,316
Coca-Cola Enterprises, Inc.		660		7,940
CVS Caremark Corp.§		240		6,898
Costco Wholesale Corp.§		100		5,250
Walgreen Co.		200		4,934
General Mills, Inc.§		80		4,860
Kroger Co.§		180		4,754
Kellogg Co.§		100		4,385
Corn Products International, Inc.§		130		3,751
Sysco Corp.§		160		3,670
Cadbury PLC — SP ADR§		90		3,210
H.J. Heinz Co.§		80		3,008
Energizer Holdings, Inc.*		50		2,707
Whole Foods Market, Inc.		180		1,699
Casey’s General Stores, Inc.§		50		1,139
WD-40 Co.§		40		1,132
Winn-Dixie Stores, Inc.*§		70		1,127
Ruddick Corp.§		40		1,106
McCormick & Co., Inc.§		31		988
Hormel Foods Corp.		30		932
United Natural Foods, Inc.*§		50		891
Clorox Co.		10		556
Tyson Foods, Inc. — Class A		20		175

			MARKET
	SHARES		VALUE
ConAgra Foods, Inc.		2	$	33
Archer-Daniels-Midland Co.§		1		29
Total Consumer Staples				867,886
INDUSTRIALS 2.3%
Republic Services, Inc.§		6,844		169,663
Brink’s Co.§		2,880		77,414
Iron Mountain, Inc.*		2,771		68,527
Southwest Airlines Co.		4,620		39,824
Alliant Techsystems, Inc.*§		360		30,874
Hubbell, Inc. — Class B§		710		23,203
Trinity Industries, Inc.§		1,250		19,700
Flowserve Corp.§		340		17,510
AMR Corp.*		1,530		16,325
Continental Airlines, Inc. — Class B*		890		16,073
Ryder System, Inc.§		400		15,512
Quanta Services, Inc.*§		680		13,464
SPX Corp.§		330		13,381
Valmont Industries, Inc.§		200		12,272
Timken Co.§		620		12,171
United Rentals, Inc.*		1,331		12,139
Fluor Corp.§		250		11,217
Carlisle Companies, Inc.§		510		10,557
Northrop Grumman Corp.§		230		10,359
McDermott International, Inc.*§		1,030		10,176
Precision Castparts Corp.§		170		10,112
WESCO International, Inc.*		480		9,230
Deere & Co.§		240		9,197
Thomas & Betts Corporation*		380		9,128
Manitowoc Co., Inc.§		1,020		8,833
Delta Air Lines, Inc.*		730		8,366
Bucyrus International, Inc.§		440		8,149
General Cable Corp.*§		420		7,430
Hertz Global Holdings, Inc.*		1,420		7,199
GATX Corp.§		230		7,123
Steelcase, Inc. — Class A§		1,180		6,632
Boeing Co.		140		5,974
UAL Corp.§		530		5,841
Terex Corp.*		320		5,542
Avis Budget Group, Inc.*		7,560		5,292
Manpower, Inc.§		140		4,759
JetBlue Airways Corp.*		600		4,260
Copa Holdings SA§		140		4,245
Caterpillar, Inc.§		90		4,020
US Airways Group, Inc.*		510		3,942
Textron, Inc.		260		3,606
Alaska Air Group, Inc.*		110		3,218
SkyWest, Inc.		170		3,162
Allegiant Travel Co.*		60		2,914
Foster Wheeler Ltd.*§		110		2,572
Oshkosh Corp.		241		2,142
AirTran Holdings, Inc.*		480		2,131
Kansas City Southern*§		100		1,905
Kennametal, Inc.§		50		1,110
Eaton Corp.		10		497
Kirby Corp.*§		10		274

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    27

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
General Electric Co.		10	$	162
Spirit AeroSystems Holdings, Inc. —
Class A*		10		102
Stericycle, Inc.*§		1		52
Shaw Group, Inc.*		1		20
KBR, Inc.§		1		15
Total Industrials				759,517
TELECOMMUNICATION SERVICES 2.0%
Embarq Corp.§		9,650		347,014
Centennial Communications
Corp.*§		13,920		112,195
MetroPCS Communications, Inc.*§		3,570		53,014
Verizon Communications, Inc.§		1,000		33,900
Qwest Communications
International, Inc.§		7,130		25,953
American Tower Corp. — Class A*§		860		25,215
AT&T, Inc.§		580		16,530
U.S. Cellular Corp.*§		300		12,972
Deutsche Telekom AG — SP ADR§		600		9,180
NII Holdings, Inc. — Class B*		350		6,363
Windstream Corp.§		240		2,208
Tele Norte Leste Participacoes
SA — ADR§		140		1,949
Frontier Communications Corp.§		200		1,748
tw telecom Inc.*§		150		1,271
NTELOS Holdings Corp.§		50		1,233
Level 3 Communications, Inc.*		1,400		980
Cbeyond, Inc.*§		50		799
Global Crossing*§		90		715
Iowa Telecommunications Services,
Inc.§		50		714
Telephone & Data Systems, Inc.		10		318
Total Telecommunication Services				654,271
MATERIALS 1.5%
Rohm & Haas Co.§		3,910		241,599
Crown Holdings, Inc.*§		2,580		49,536
Lubrizol Corp.§		740		26,929
AptarGroup, Inc.§		680		23,963
Monsanto Co.§		260		18,291
Alcoa, Inc.§		1,450		16,327
Airgas, Inc.§		380		14,816
Ashland, Inc.		1,300		13,663
CF Industries Holdings, Inc.§		270		13,273
AK Steel Holding Corp.§		1,230		11,464
Nalco Holding Co.§		900		10,386
The Mosaic Co.§		280		9,688
Huntsman Corp.§		2,450		8,428
Allegheny Technologies, Inc.§		260		6,638
International Paper Co.§		550		6,490
Freeport-McMoRan Copper &
Gold, Inc.		260		6,354
Dow Chemical Co.§		400		6,036
Temple-Inland, Inc.§		1,210		5,808
Reliance Steel & Aluminum Co.§		270		5,384

			MARKET
	SHARES		VALUE
Albemarle Corp.§		240	$	5,352
Southern Copper Corp.§		1		16
Total Materials				500,441
ENERGY 1.2%
Precision Drilling Trust		8,225		69,006
SEACOR Holdings, Inc.*		500		33,325
ENSCO International, Inc.		1,010		28,674
ConocoPhillips		490		25,382
Anadarko Petroleum Corp.		460		17,733
Cimarex Energy Co.		640		17,139
Noble Corp.		740		16,347
Superior Energy Services*		1,000		15,930
Valero Energy Corp.		580		12,551
Unit Corp.*		460		12,291
Patterson-UTI Energy, Inc.		940		10,819
Atwood Oceanics, Inc.*		640		9,779
Quicksilver Resources, Inc.*		1,570		8,745
Rowan Companies, Inc.		520		8,268
Mariner Energy, Inc.*		800		8,160
Tesoro Corp.		610		8,034
National-Oilwell Varco, Inc.*		320		7,821
FMC Technologies, Inc.*		270		6,434
Marathon Oil Corp.		220		6,019
Key Energy Services, Inc.*		1,360		5,998
Holly Corp.		320		5,834
Transocean LTD.*		120		5,670
Global Industries Ltd.*		1,520		5,305
Nabors Industries Ltd.*		430		5,147
Williams Companies, Inc.		270		3,910
Chesapeake Energy Corp.		230		3,719
Helmerich & Payne, Inc.		160		3,640
Forest Oil Corp.*		210		3,463
Smith International, Inc.		140		3,205
W&T Offshore, Inc.		210		3,007
Massey Energy Co.		210		2,896
Helix Energy Solutions Group, Inc.*		380		2,751
Frontier Oil Corp.		180		2,273
Patriot Coal Corp.*		350		2,187
Murphy Oil Corp.		30		1,330
Oceaneering International, Inc.*		41		1,195
Pride International, Inc.*		60		959
Southwestern Energy Co.*		30		869
Oil States International, Inc.*		10		187
Total Energy				386,002
Total Common Stocks
(Cost $11,367,637)				11,406,855
EXCHANGE TRADED FUNDS 10.1%
iShares S&P GSCI Commodity
Indexed Trust*		57,790		1,653,372
iShares MSCI Emerging
Markets Index Fund		19,690		491,659
Liberty All Star Equity Fund§		44,120		154,420
Eaton Vance Tax-Managed
Buy-Write Income Fund§		12,120		151,864

28    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
Eaton Vance Tax-Managed Buy-Write Opportunities Fund§		14,720	$	150,144
First Trust Enhanced Equity Income Fund, Inc.§		16,910		149,653
Nuveen Equity Premium and Growth Fund§		13,940		149,576
Nuveen Core Equity Alpha Fund§		15,560		149,532
Nuveen Equity Premium Opportunity Fund§		13,820		147,598
Vanguard Emerging Markets ETF§		5,220		123,714
Total Exchange Traded Funds
(Cost $3,571,115)				3,321,532
		CONTRACTS
OPTIONS PURCHASED 0.1%
Put Options On:
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 840		20		43,750
Total Options Purchased
(Cost $110,076)				43,750
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 28.5%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	2,412,008		2,412,008
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		2,412,008		2,412,008
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		2,412,008		2,412,008
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		2,177,016		2,177,016
Total Repurchase Agreements
(Cost $9,413,040)				9,413,040
Total Long Securities 73.2%
(Cost $24,461,868)			$	24,185,177
		SHARES
COMMON STOCKS SOLD SHORT (25.4)%
ENERGY (0.9)%
SandRidge Energy, Inc.*		10		(61	)
Cheniere Energy, Inc.*		100		(285	)
Arch Coal, Inc.		160		(2,606	)
Hercules Offshore, Inc.*		600		(2,850	)
Hess Corp.		60		(3,218	)
Diamond Offshore Drilling, Inc.		70		(4,126	)
Whiting Petroleum Corp.*		170		(5,688	)

			MARKET
	SHARES		VALUE
Alpha Natural Resources, Inc.*		360	$	(5,828	)
Schlumberger Ltd.		150		(6,350	)
El Paso Corp.		940		(7,360	)
Range Resources Corp.		220		(7,566	)
CONSOL Energy Inc.		280		(8,002	)
Walter Industries, Inc.		500		(8,755	)
CNX Gas Corp.*		390		(10,647	)
Encore Acquisition Co.*		420		(10,718	)
Exterran Holdings, Inc.*		560		(11,928	)
Teekay Corp.		670		(13,166	)
IHS, Inc.*		380		(14,220	)
Continental Resources, Inc.*		760		(15,740	)
Peabody Energy Corp.		700		(15,925	)
Plains Exploration & Production Co.*		900		(20,916	)
Newfield Exploration Co.*		1,200		(23,700	)
Overseas Shipholding Group, Inc		670		(28,214	)
Precision Drilling Trust		8,745		(73,400	)
Total Energy				(301,269	)
MATERIALS (1.1)%
Southern Copper Corp.		1		(16	)
Intrepid Potash, Inc.*		10		(208	)
Louisiana-Pacific Corp.		1,040		(1,622	)
United States Steel Corp.		50		(1,860	)
Carpenter Technology Corp.		100		(2,054	)
Cliffs Natural Resources, Inc.		130		(3,329	)
RPM International, Inc.		330		(4,386	)
Commercial Metals Co.		420		(4,985	)
International Flavors & Fragrances, Inc.		180		(5,350	)
FMC Corp.		120		(5,368	)
Sigma-Aldrich Corp.		140		(5,914	)
Ashland, Inc.		680		(7,147	)
Westlake Chemical Corp.		450		(7,330	)
Owens-Illinois, Inc.*		300		(8,199	)
Celanese Corp.		710		(8,825	)
Chemtura Corp.		6,690		(9,366	)
Nucor Corp.		210		(9,702	)
Cabot Corp.		820		(12,546	)
Valhi, Inc.		1,210		(12,947	)
Scotts Miracle-Gro Co. — Class A		440		(13,077	)
Eastman Chemical Co.		420		(13,318	)
Eagle Materials, Inc.		1,000		(18,410	)
Weyerhaeuser Co.		1,170		(35,814	)
Ecolab, Inc.		1,030		(36,204	)
Valspar Corp.		3,110		(56,260	)
Newmont Mining Corp.		1,650		(67,155	)
Total Materials				(351,392	)
TELECOMMUNICATION SERVICES (1.1)%
Sprint Nextel Corp.*		2,250		(4,118	)
SBA Communications Corp. — Class A*		1,060		(17,299	)
CenturyTel, Inc.		12,630		(345,178	)
Total Telecommunication Services				(366,595	)

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    29

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
CONSUMER STAPLES (1.2)%
Rite Aid Corp.*		1,060	$	(327	)
Altria Group, Inc.		470		(7,078	)
Hershey Co.		280		(9,727	)
Coca-Cola Co.		270		(12,223	)
Archer Daniels Midland Co.		521		(15,020	)
Constellation Brands, Inc. — Class A*		1,140		(17,978	)
Smithfield Foods, Inc.*		1,340		(18,854	)
Philip Morris International, Inc.		490		(21,320	)
Dean Foods Co.*		1,280		(23,002	)
Colgate-Palmolive Co.		480		(32,899	)
Sara Lee Corp.		4,480		(43,859	)
ConAgra Foods, Inc.		3,052		(50,358	)
Campbell Soup Co.		1,830		(54,918	)
Avon Products, Inc.		3,070		(73,804	)
Total Consumer Staples				(381,367	)
UTILITIES (1.6)%
PPL Corp.		1		(31	)
NiSource, Inc.		500		(5,485	)
Reliant Energy, Inc.*		1,183		(6,838	)
MDU Resources Group, Inc.		340		(7,337	)
Allegheny Energy, Inc.		220		(7,449	)
NSTAR		300		(10,947	)
Ameren Corp.		370		(12,306	)
Dynegy, Inc. — Class A*		8,500		(17,000	)
OGE Energy Corp.		1,010		(26,038	)
Centerpoint Energy, Inc.		2,120		(26,755	)
Equitable Resources, Inc.		831		(27,880	)
Duke Energy Corp.		3,330		(49,983	)
Southern Co.		1,530		(56,610	)
Aqua America, Inc.		2,770		(57,034	)
Xcel Energy Inc.		3,410		(63,256	)
Hawaiian Electric Industries, Inc.		6,210		(137,528	)
Total Utilities				(512,477	)
CONSUMER DISCRETIONARY (2.2)%
Office Depot, Inc.*		60		(179	)
Boyd Gaming Corp.		120		(568	)
Coldwater Creek, Inc.*		240		(684	)
American Eagle Outfitters, Inc.		90		(842	)
GameStop Corp.*		50		(1,083	)
Signet Jewelers Ltd.		200		(1,734	)
AutoNation, Inc.*		230		(2,272	)
Fortune Brands, Inc.		60		(2,477	)
Dollar Tree, Inc.*		70		(2,926	)
Wynn Resorts, Ltd.*		80		(3,381	)
E.W. Scripps Co. — Class A		1,690		(3,735	)
M.D.C. Holdings, Inc.		130		(3,939	)
Interpublic Group of Companies, Inc.*		1,020		(4,039	)
Virgin Media, Inc.		810		(4,042	)
Scientific Games Corp. — Class A*		260		(4,560	)
Macy’s, Inc.		490		(5,071	)
Wyndham Worldwide Corp.		850		(5,567	)

			MARKET
	SHARES		VALUE
Liz Claiborne, Inc.		2,260	$	(5,876	)
LKQ Corp.*		590		(6,879	)
International Game Technology		590		(7,015	)
CarMax, Inc.*		910		(7,171	)
Las Vegas Sands Corp.*		1,240		(7,353	)
Lennar Corp. — Class A		890		(7,716	)
Jones Apparel Group, Inc.		1,350		(7,911	)
Brinker International, Inc.		780		(8,221	)
Apollo Group, Inc. — Class A*		120		(9,194	)
Marriott International, Inc. — Class A		480		(9,336	)
Coach, Inc.*		480		(9,970	)
Starbucks Corp.*		1,110		(10,501	)
Morningstar, Inc.*		300		(10,650	)
NIKE, Inc. — Class B		210		(10,710	)
Strayer Education, Inc.		50		(10,720	)
Kohl’s Corp.*		330		(11,946	)
Federal-Mogul Corp.*		2,850		(12,056	)
Panera Bread Co. — Class A*		250		(13,060	)
Mattel, Inc.		890		(14,240	)
Yum! Brands, Inc.		470		(14,805	)
Hearst-Argyle Television, Inc.		2,680		(16,241	)
Goodyear Tire & Rubber Co.*		2,730		(16,298	)
Tim Hortons, Inc.		570		(16,439	)
Eastman Kodak Co.		2,550		(16,779	)
WABCO Holdings, Inc.		1,130		(17,843	)
Thor Industries, Inc.		1,360		(17,925	)
Saks, Inc.*		4,850		(21,243	)
NVR, Inc.*		50		(22,813	)
Cablevision Systems Corp. — Class A		1,430		(24,081	)
Choice Hotels International, Inc.		950		(28,557	)
Scripps Networks Interactive, Inc. — Class A		1,360		(29,920	)
Home Depot, Inc.		1,330		(30,617	)
Pulte Homes, Inc.		3,750		(40,988	)
McDonald’s Corp.		900		(55,971	)
H&R Block, Inc.		2,950		(67,024	)
Toll Brothers, Inc.*		3,600		(77,156	)
Total Consumer Discretionary				(742,324	)
HEALTH CARE (2.9)%
Pfizer Inc.		240		(4,250	)
Hologic, Inc.*		350		(4,574	)
PDL BioPharma, Inc.		850		(5,253	)
Health Management Associates,
Inc. — Class A*		3,620		(6,480	)
Schering-Plough Corp.		490		(8,345	)
Amylin Pharmaceuticals, Inc.*		840		(9,114	)
Tenet Healthcare Corp.*		12,500		(14,375	)
Advanced Medical Optics, Inc.*		2,240		(14,806	)
Express Scripts, Inc.*		270		(14,845	)
CooperCompanies, Inc.		940		(15,416	)
Stryker Corp.		570		(22,771	)
Edwards Lifesciences Corp.*		420		(23,079	)
Hospira, Inc.*		890		(23,870	)

30    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
BioMarin Pharmaceuticals, Inc.*		1,481	$	(26,362	)
Teleflex, Inc.		550		(27,555	)
Boston Scientific Corp.*		4,420		(34,211	)
Merck & Company, Inc.		1,180		(35,872	)
Life Technologies Corp.*		1,704		(39,720	)
Gilead Sciences, Inc.*		780		(39,889	)
Techne Corp.		640		(41,293	)
Illumina, Inc.*		1,640		(42,722	)
Watson Pharmaceuticals, Inc.*		1,810		(48,092	)
Allergan, Inc.		1,400		(56,448	)
HLTH Corp.*		5,600		(58,576	)
Genzyme Corp.*		1,170		(77,653	)
Covidien Ltd.		2,210		(80,090	)
Cephalon, Inc.*		1,040		(80,122	)
Teva Pharmaceutical Industries
Ltd. — SP ADR		2,540		(108,169	)
Total Health Care				(963,952	)
INFORMATION TECHNOLOGY (2.9)%
Western Union Co.		10		(143	)
Equinix, Inc.*		20		(1,064	)
MoneyGram International, Inc.*		1,250		(1,262	)
Acxiom Corp.		243		(1,971	)
Cognizant Technology Solutions Corp. — Class A*		200		(3,612	)
Riverbed Technology, Inc.*		320		(3,645	)
Nuance Communications, Inc.*		530		(5,491	)
Google, Inc. — Class A*		20		(6,153	)
Salesforce.com, Inc.*		230		(7,362	)
Adobe Systems, Inc.*		350		(7,451	)
Lam Research Corp.*		371		(7,895	)
Sohu.com, Inc.*		170		(8,048	)
Juniper Networks, Inc.*		500		(8,755	)
Total System Services, Inc.		710		(9,940	)
MasterCard, Inc.		70		(10,005	)
Teradyne, Inc.*		2,550		(10,761	)
Brocade Communications Systems, Inc.*		4,110		(11,508	)
Motorola, Inc.		3,120		(13,822	)
Akamai Technologies, Inc.*		972		(14,667	)
Mettler-Toledo International Inc.*		220		(14,828	)
NCR Corp.*		1,162		(16,431	)
Rambus, Inc.*		1,080		(17,194	)
Novell, Inc.*		4,550		(17,699	)
AVX Corp.		2,350		(18,659	)
Integrated Device Technology,
Inc.*		3,430		(19,242	)
Broadcom Corp. — Class A*		1,160		(19,685	)
Cree, Inc.*		1,380		(21,901	)
Tech Data Corp.*		1,250		(22,300	)
VeriSign, Inc.*		1,220		(23,278	)
International Rectifier Corp.*		1,730		(23,355	)
LSI Logic Corp.*		7,160		(23,556	)
Tyco Electronics Ltd.		1,550		(25,125	)
Dolby Laboratories, Inc. — Class A*		810		(26,536	)
Visa Inc.		570		(29,896	)

			MARKET
	SHARES		VALUE
Flir Systems, Inc.*		1,040	$	(31,907	)
Electronic Arts, Inc.*		2,050		(32,882	)
IAC/InterActiveCorp*		2,180		(34,291	)
Paychex, Inc.		1,320		(34,690	)
Tellabs, Inc.*		10,080		(41,530	)
Hewitt Associates, Inc. — Class A*		1,570		(44,557	)
Altera Corp.		3,670		(61,326	)
Diebold, Inc.		2,560		(71,910	)
SAIC, Inc.*		3,920		(76,362	)
Atmel Corp.*		26,920		(84,296	)
Total Information Technology				(966,991	)
INDUSTRIALS (3.2)%
KBR, Inc.		1		(15	)
Joy Global Inc.		30		(687	)
Ingersoll-Rand Company Ltd. — Class A		150		(2,602	)
Danaher Corp.		50		(2,830	)
Pall Corp.		100		(2,843	)
Masco Corp.		530		(5,899	)
Norfolk Southern Corp.		160		(7,528	)
Shaw Group Inc.*		411		(8,413	)
PACCAR Inc.		300		(8,580	)
Corporate Executive Board Co.		420		(9,265	)
AMETEK, Inc.		310		(9,365	)
USG Corp.*		1,170		(9,407	)
Monster Worldwide, Inc.*		790		(9,551	)
AGCO Corp.*		410		(9,672	)
Cummins Inc.		450		(12,029	)
Tyco International Ltd.		560		(12,096	)
Armstrong World Industries, Inc		600		(12,972	)
Donaldson Company, Inc.		400		(13,460	)
FTI Consulting, Inc.*		310		(13,851	)
Waste Management, Inc.		420		(13,919	)
CSX Corp.		430		(13,962	)
Rockwell Collins, Inc.		360		(14,072	)
Jacobs Engineering Group Inc.*		300		(14,430	)
First Solar, Inc.*		130		(17,935	)
SunPower Corp.*		550		(20,350	)
UTi Worldwide, Inc.		1,680		(24,091	)
Con-way Inc.		930		(24,738	)
Expeditors International of Washington, Inc.		760		(25,285	)
Fastenal Co.		770		(26,835	)
Avery Dennison Corp.		910		(29,784	)
FedEx Corp.		510		(32,717	)
Owens Corning, Inc.*		2,130		(36,849	)
CH Robinson Worldwide, Inc.		850		(46,776	)
Dun & Bradstreet Corp.		680		(52,496	)
Stericycle, Inc.*		1,091		(56,819	)
Landstar System, Inc.		1,760		(67,637	)
Pitney Bowes, Inc.		3,390		(86,377	)
United Parcel Service, Inc. — Class B		2,480		(136,797	)
Republic Services, Inc.		6,844		(169,663	)
Total Industrials				(1,062,597	)

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    31

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			MARKET
	SHARES		VALUE
FINANCIALS (8.3)%
Colonial BancGroup, Inc.		840	$	(1,739	)
Northern Trust Corp.		40		(2,086	)
HRPT Properties Trust		750		(2,527	)
MSCI, Inc. — Class A*		150		(2,664	)
Unitrin, Inc.		180		(2,869	)
Kimco Realty Corp.		190		(3,473	)
Old Republic International Corp.		350		(4,172	)
BRE Properties, Inc.		150		(4,197	)
Health Care REIT, Inc.		110		(4,642	)
Kilroy Realty Corp.		140		(4,684	)
Nasdaq OMX Group, Inc.*		190		(4,695	)
Zions Bancorporation		200		(4,902	)
Forest City Enterprises, Inc. — Class A		870		(5,829	)
E*Trade Financial Corp.*		6,110		(7,026	)
KeyCorp		890		(7,583	)
Leucadia National Corp.*		400		(7,920	)
UDR, Inc.		590		(8,136	)
T. Rowe Price Group, Inc.		230		(8,151	)
Citigroup, Inc.		1,250		(8,387	)
MF Global Ltd.*		4,380		(8,935	)
U.S. Bancorp		360		(9,004	)
First Citizens BancShares, Inc. — Class A		60		(9,168	)
Allied Capital Corp.		3,510		(9,442	)
Brandywine Realty Trust		1,280		(9,869	)
Public Storage		130		(10,335	)
Moody’s Corp.		520		(10,447	)
Student Loan Corp.		260		(10,660	)
Morgan Stanley		690		(11,068	)
Regency Centers Corp.		250		(11,675	)
Eaton Vance Corp.		591		(12,417	)
Endurance Specialty Holdings Ltd.		410		(12,517	)
Equity Residential		480		(14,314	)
First Horizon National Corp.		1,410		(14,905	)
Conseco, Inc.*		3,010		(15,592	)
Popular, Inc.		3,040		(15,686	)
Cullen/Frost Bankers, Inc.		310		(15,711	)
Camden Property Trust		520		(16,297	)
Fifth Third Bancorp		2,110		(17,429	)
St Joe Co.*		720		(17,510	)
Huntington Bancshares, Inc.		2,540		(19,456	)
Essex Property Trust, Inc.		260		(19,955	)
Simon Property Group, Inc.		380		(20,189	)
Capitol Federal Financial		450		(20,520	)
Synovus Financial Corp.		2,530		(20,999	)
SLM Corp.*		2,380		(21,182	)
Franklin Resources, Inc.		350		(22,323	)
Ventas, Inc.		680		(22,828	)
First American Corp.		860		(24,845	)
Plum Creek Timber Company, Inc.		750		(26,055	)
Brown & Brown, Inc.		1,270		(26,543	)
New York Community Bancorp, Inc.		2,370		(28,345	)

			MARKET
	SHARES		VALUE
Fidelity National Financial, Inc — Class A		1,700	$	(30,175	)
Federal Realty Investment Trust		600		(37,248	)
Hudson City Bancorp, Inc.		2,960		(47,242	)
Lazard Ltd. — Class A		1,640		(48,774	)
Digital Realty Trust, Inc.		1,700		(55,845	)
Marsh & McLennan Companies, Inc.		4,980		(120,865	)
TFS Financial Corp.		9,631		(124,240	)
M&T Bank Corp.		2,810		(161,322	)
Tower Group, Inc.		6,420		(181,108	)
Wells Fargo & Co.		10,300		(303,644	)
Bank of America Corp.		21,659		(304,959	)
PNC Financial Services Group, Inc.		6,650		(325,850	)
Banco Santander CEN-SPON ADR		39,169		(371,732	)
Total Financials				(2,734,907	)
Total Common Stocks Sold Short
(Proceeds $8,778,328)				(8,383,871	)
		CONTRACTS
OPTIONS WRITTEN (0.6)%
Call Options On:
Constellation Energy Group Expiring January 2009 with strike price of 25		70		(7,000	)
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 880		20		(200,000	)
Total Options Written
(Premiums Received $218,571)				(207,000	)
Other Assets in Excess of Other Liabilities – 52.8%			$	17,427,388
Net Assets – 100.0%			$	33,021,694
			Unrealized
		Contracts		Gain (Loss)
CURRENCY FUTURES CONTRACTS
PURCHASED
March 2009 Australian Dollar Futures Contracts (Aggregate Market Value of Contracts $494,620)		7	$	36,068
March 2009 New Zealand Dollar Futures Contracts (Aggregate Market Value of Contracts $409,080)		7		34,318
March 2009 British Pound Futures Contracts (Aggregate Market Value of Contracts $364,225)		4		(4,210	)
(Total Aggregate Market Value of Contracts $1,267,925)			$	66,176

32    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     ABSOLUTE RETURN STRATEGIES FUND

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $5,087,825)		113	$	84,905
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,816,620)		34		74,802
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $2,612,900)		53		68,442
March 2009 Nikkei-225 Stock Average Index Futures Contracts (Aggregate Market Value of Contracts $965,475)		21		62,537
March 2009 Dow Jones STOXX 50 Futures Contracts (Aggregate Market Value of Contracts $1,326,985)		45		56,217
(Total Aggregate Market Value of Contracts $11,809,805)			$	346,903
CURRENCY FUTURES CONTRACTS
SOLD SHORT
March 2009 U.S. Dollar Index Futures Contracts (Aggregate Market Value of Contracts $6,982,750)		85	$	297,781
March 2009 Japanese Yen Futures Contracts (Aggregate Market Value of Contracts $552,050)		4		(7,310	)
March 2009 Canadian Dollar Futures Contracts (Aggregate Market Value of Contracts $492,840)		6		(17,955	)
March 2009 Swiss Franc Futures Contracts (Aggregate Market Value of Contracts $469,750)		4		(53,311	)
(Total Aggregate Market Value of Contracts $8,497,390)			$	219,205

			UNREALIZED
	CONTRACTS		LOSS
FUTURES CONTRACTS SOLD SHORT
March 2009 Dow Jones Euro STOXX 50 Index Futures Contracts (Aggregate Market Value of Contracts $352,298)		10	$	(30,355	)

*	Non-Income Producing Security.
†	Repurchase Agreements — See Note 6.
	All or a portion of this security is pledged as short security § collateral at December 31, 2008.
	ADR — American Depository Receipt.
	REIT — Real Estate Investment Trust.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    33

SCHEDULE OF INVESTMENTS

December 31, 2008

     ALTERNATIVE STRATEGIES ALLOCATION FUND

			MARKET
	SHARES		VALUE
MUTUAL FUNDS† 76.3%
Rydex Series Funds – Managed Futures Strategy Fund — Class H		54,784	$	1,533,943
Rydex Variable Trust – Commodities Strategy Fund		29,370		336,877
Rydex Variable Trust — Absolute Return Strategies Fund		14,339		300,691
Rydex Variable Trust — Real Estate Fund		12,766		223,526
Total Mutual Funds
(Cost $2,944,719)				2,395,037
CURRENCY EXCHANGE TRADED
FUNDS 12.5%
PowerShares DB G10 Currency Harvest Fund*		20,150		391,313
Total Currency Exchange Traded Funds
(Cost $540,613)				391,313
		FACE
		AMOUNT
REPURCHASE AGREEMENT†† 11.1%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	347,233		347,233
Total Repurchase Agreement
(Cost $347,233)				347,233
Total Investments 99.9%
(Cost $3,832,565)			$	3,133,583
Other Assets in Excess of Liabilities – 0.1%			$	4,024
Net Assets – 100.0%			$	3,137,607

*	Non-Income Producing Security.
†	Affiliated Funds
††	Repurchase Agreements — See Note 6.

34    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     COMMODITIES STRATEGY FUND

			MARKET
	SHARES		VALUE
EXCHANGE TRADED FUNDS 16.9%
iShares S&P GSCI Commodity Indexed Trust*		93,000	$	2,660,730
Total Exchange Traded Funds
(Cost $2,724,854)				2,660,730
		FACE
		AMOUNT
STRUCTURED NOTES†† 24.7%
Credit Suisse Securities (USA) LLC, S&P GSCI Total Return Linked Notes at 1.33% due 12/16/09	$	3,009,900		2,681,851
Swedish Export Credit Corp., S&P GSCI Total Return Linked Notes at 1.83% due 12/21/09		1,000,000		1,210,080
Total Structured Notes
(Cost $4,009,900)				3,891,931
FEDERAL AGENCY DISCOUNT NOTES 19.0%
Federal Farm Credit Bank** 0.25% due 01/02/09		2,000,000		2,000,000
Farmer Mac** 0.07% due 01/07/09		500,000		499,995
Freddie Mac*** 0.05% due 01/29/09		500,000		499,981
Total Federal Agency Discount Notes
(Cost $2,999,976)				2,999,976

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 41.3%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	1,670,909	$	1,670,909
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,670,909		1,670,909
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		1,670,909		1,670,909
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,508,118		1,508,118
Total Repurchase Agreements
(Cost $6,520,845)				6,520,845
Total Investments 101.9%
(Cost $16,255,575)			$	16,073,482
Liabilities in Excess of Other Assets – (1.9)%			$	(292,165	)
Net Assets – 100.0%			$	15,781,317

*	Non-Income Producing Security.
**	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
***	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.
†	Repurchase Agreements — See Note 6.
††	Structured Notes are leveraged, providing a market exposure to the underlying benchmark greater than the face amount. The total exposure to the Benchmark is $11,911,731 as of December 31, 2008 — See Note 2.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    35

SCHEDULE OF INVESTMENTS

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 24.4%
FINANCIALS 4.3%
Travelers Companies, Inc.		910	$	41,132
Aon Corp.		880		40,198
Hanover Insurance Group, Inc.		820		35,235
Annaly Capital Management, Inc.		1,950		30,946
Transatlantic Holdings, Inc.		620		24,837
MetLife, Inc.		650		22,659
Arthur J. Gallagher & Co.		860		22,283
Allied World Assurance Company Holdings Ltd		530		21,518
Chubb Corp.		400		20,400
JPMorgan Chase & Co.		640		20,179
ACE Ltd.§		330		17,464
Nationwide Health Properties, Inc.		600		17,232
Allstate Corp.		430		14,087
Axis Capital Holdings Ltd.		440		12,813
W.R. Berkley Corp.		390		12,090
Ameriprise Financial, Inc.		500		11,680
PartnerRe Ltd.		150		10,690
Unum Group		550		10,230
Capital One Financial Corp.		310		9,886
ProLogis		700		9,723
Charles Schwab Corp.		600		9,702
Goldman Sachs Group, Inc.		110		9,283
Invesco Ltd.		640		9,242
HCP, Inc.		310		8,609
Everest Re Group Ltd.		110		8,375
Valley National Bancorp		410		8,302
Cincinnati Financial Corp.		270		7,849
NYSE Euronext		260		7,119
Genpact Ltd.*		800		6,576
Federated Investors, Inc. — Class B		380		6,445
People’s United Financial, Inc.		350		6,240
Jones Lang LaSalle, Inc.§		220		6,094
Prudential Financial, Inc.		190		5,749
Alleghany Corp.*		20		5,640
Blackrock, Inc.		40		5,366
AFLAC, Inc.		110		5,042
American Financial Group, Inc.		220		5,034
Waddell & Reed Financial, Inc. — Class A		320		4,947
CB Richard Ellis Group, Inc. — Class A*		1,100		4,752
State Street Corp.		120		4,720
Host Hotels & Resorts, Inc.		600		4,542
Macerich Co.		210		3,814
Janus Capital Group, Inc.		450		3,613
Webster Financial Corp.		250		3,445
Protective Life Corp.		230		3,300
Assurant, Inc.		110		3,300
Comerica, Inc.		150		2,978
Stancorp Financial Group, Inc.		70		2,924
Hospitality Properties Trust		190		2,825

			MARKET
	SHARES		VALUE
Hartford Financial Services Group, Inc.		170	$	2,791
Principal Financial Group, Inc.		110		2,483
IntercontinentalExchange, Inc.*		30		2,473
American Capital Ltd.		710		2,300
Lincoln National Corp.		110		2,072
Loews Corp.		70		1,978
Genworth Financial, Inc. — Class A		670		1,896
AmeriCredit Corp.*		210		1,604
CNA Financial Corp.		90		1,480
Bank of New York Mellon Corp.		50		1,417
Investment Technology Group, Inc.*		60		1,363
SL Green Realty Corp.		50		1,295
iStar Financial Inc.		550		1,227
SunTrust Banks, Inc.		40		1,182
CBL & Associates Properties, Inc.		180		1,170
Boston Properties, Inc.		20		1,100
First Marblehead Corp.*		770		993
American International Group, Inc.		610		958
Discover Financial Services		90		858
General Growth Properties, Inc.		660		851
Developers Diversified Realty Corp.		170		830
Regions Financial Corp.		100		796
American National Insurance Co.		10		737
Arch Capital Group Ltd.*		10		701
Aircastle Ltd.		140		669
Ambac Financial Group, Inc.		360		468
Guaranty Financial Group, Inc.*		150		392
CIT Group, Inc.		70		318
BB&T Corp.		10		275
The PMI Group, Inc.		140		273
Total Financials				608,059
HEALTH CARE 3.8%
Perrigo Co.§		1,110		35,864
C.R. Bard, Inc.§		410		34,546
King Pharmaceuticals, Inc.*§		3,087		32,784
LifePoint Hospitals, Inc.*§		1,290		29,464
Hill-Rom Holdings, Inc.§		1,680		27,653
Baxter International, Inc.§		410		21,972
AmerisourceBergen Corp.§		600		21,396
WellPoint, Inc.*§		490		20,644
Lincare Holdings, Inc.*§		751		20,224
Thermo Fisher Scientific, Inc.*§		560		19,079
Universal Health Services, Inc. — Class B§		490		18,409
Celgene Corp.*§		314		17,358
Amgen, Inc.*		300		17,325
Cardinal Health, Inc.§		420		14,477
Biogen Idec, Inc.*§		290		13,813
Forest Laboratories, Inc.*§		540		13,754
ResMed, Inc.*§		360		13,493
Millipore Corp.*§		230		11,850
Charles River Laboratories International, Inc.*§		440		11,528

36    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
Vertex Pharmaceuticals, Inc.*§		360	$	10,937
UnitedHealth Group, Inc.		372		9,895
Pfizer, Inc.§		490		8,678
DENTSPLY International, Inc.§		300		8,472
Abraxis BioScience, Inc.*§		103		6,790
Beckman Coulter, Inc.§		150		6,591
Aetna, Inc.		220		6,270
Johnson & Johnson, Inc.§		100		5,983
Humana, Inc.*		160		5,965
Zimmer Holdings, Inc.*§		130		5,255
Novartis AG — SP ADR§		100		4,976
Health Net, Inc.*		440		4,792
Wyeth§		120		4,501
GlaxoSmithKline PLC — SP ADR§		120		4,472
Abbott Laboratories§		80		4,270
Sanofi-Aventis — SP ADR§		130		4,181
Quest Diagnostics, Inc.§		80		4,153
Myriad Genetics, Inc.*§		60		3,976
Endo Pharmaceuticals Holdings, Inc.*§		150		3,882
McKesson Corp.		100		3,873
Alexion Pharmaceuticals, Inc.*§		100		3,619
Onyx Pharmaceuticals, Inc.*§		100		3,416
AstraZeneca PLC — SP ADR§		80		3,282
Kinetic Concepts, Inc.*		170		3,261
OSI Pharmaceuticals, Inc.*§		80		3,124
Bristol-Myers Squibb Co.§		130		3,022
Medco Health Solutions, Inc.*§		70		2,934
CIGNA Corp.		170		2,864
Coventry Health Care, Inc.*		190		2,827
Warner Chilcott Ltd.*§		180		2,610
Teva Pharmaceutical Industries Ltd. — SP ADR§		60		2,554
Intuitive Surgical, Inc.*§		20		2,540
Community Health Systems, Inc.*§		130		1,895
Inverness Medical Innovations, Inc.*		100		1,891
United Therapeutics Corp.*§		30		1,876
Pediatrix Medical Group, Inc.*		50		1,585
Shire PLC — SP ADR§		30		1,343
Covance, Inc.*§		20		921
Eli Lilly & Co.		20		805
Total Health Care				559,914
CONSUMER DISCRETIONARY 3.1%
DreamWorks Animation SKG, Inc. — Class A*§		1,543		38,976
Hasbro, Inc.§		980		28,587
DIRECTV Group, Inc.*§		1,120		25,659
HSN, Inc.*§		2,800		20,356
DeVry, Inc.§		330		18,945
Burger King Holdings, Inc.§		730		17,432
Regal Entertainment Group — Class A§		1,620		16,540
Comcast Corp. — Class A§		860		14,517
Time Warner, Inc.§		1,150		11,569

			MARKET
	SHARES		VALUE
Weight Watchers International, Inc.§		390	$	11,474
Service Corporation International§		2,000		9,940
Mohawk Industries, Inc.*§		220		9,453
RadioShack Corp.§		777		9,277
John Wiley & Sons, Inc. — Class A§		250		8,895
Carnival Corp.§		340		8,269
Liberty Media Corp — Capital*		1,680		7,913
VF Corp.§		140		7,668
The Gap, Inc.§		560		7,498
Tiffany & Co.§		300		7,089
Liberty Global, Inc. — Class A*§		400		6,368
Interval Leisure Group, Inc.*§		1,180		6,360
Ticketmaster Entertainment, Inc.*§		890		5,714
Amazon.com, Inc.*§		110		5,641
AutoZone, Inc.*§		40		5,579
Corinthian Colleges, Inc.*§		340		5,566
Dick’s Sporting Goods, Inc.*§		390		5,503
BorgWarner, Inc.§		240		5,225
TJX Companies, Inc.§		240		4,937
Hillenbrand, Inc.§		290		4,837
Royal Caribbean Cruises Ltd.		350		4,812
Matthews International Corp. — Class A§		130		4,768
Capella Education Co.*§		80		4,701
Big Lots, Inc.*§		320		4,637
Whirlpool Corp.§		110		4,548
Autoliv, Inc.§		210		4,507
Centex Corp.§		420		4,469
Penske Auto Group, Inc.§		570		4,378
Expedia, Inc.*§		500		4,120
Barnes & Noble, Inc.§		260		3,900
ITT Educational Services, Inc.*§		40		3,799
J.C. Penney Company, Inc.§		190		3,743
American Public Education, Inc.*§		100		3,719
Sotheby’s§		390		3,467
K12 Inc.*§		180		3,375
Petsmart, Inc.§		180		3,321
Foot Locker, Inc.§		450		3,303
Ross Stores, Inc.§		110		3,270
Apollo Group, Inc. — Class A*§		40		3,065
Central European Media Enterprises Ltd. — Class A*§		140		3,041
CBS Corp.		340		2,785
D.R. Horton, Inc.		350		2,474
CTC Media, Inc.*§		500		2,400
Snap-On, Inc.§		60		2,363
Career Education Corp.*		130		2,332
TRW Automotive Holdings Corp.*		590		2,124
Discovery Communications, Inc. — Class A*§		150		2,124
Gannett Co., Inc.		250		2,000
Garmin Ltd.		100		1,917
AnnTaylor Stores Corp.*		240		1,385
OfficeMax Inc.		180		1,375

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    37

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
Family Dollar Stores, Inc.§		50	$	1,303
GameStop Corp. — Class A*§		60		1,300
Phillips-Van Heusen Corp.§		60		1,208
Abercrombie & Fitch Co. — Class A		50		1,153
Liberty Media Corp — Interactive*		280		874
Sears Holdings Corp.*		20		777
Urban Outfitters, Inc.*§		50		749
priceline.com, Inc.*		10		736
Meredith Corp.		40		685
KB HOME		50		681
O’Reilly Automotive, Inc.*§		20		615
Guess?, Inc.§		40		614
Sherwin-Williams Co.§		10		598
Clear Channel Outdoor Holdings, Inc. — Class A*		90		554
Williams-Sonoma, Inc.		70		550
RH Donnelley Corp.*		1,000		370
News Corp. — Class A§		40		364
M.D.C. Holdings, Inc.		10		303
Total Consumer Discretionary				451,443
UTILITIES 2.6%
Pepco Holdings, Inc.§		2,410		42,802
American Water Works Company, Inc.§		1,600		33,408
UGI Corp.§		1,360		33,211
DPL, Inc.§		1,310		29,920
Pinnacle West Capital Corp.		780		25,061
DTE Energy Co.§		590		21,045
Great Plains Energy, Inc.§		880		17,010
Atmos Energy Corp.		640		15,168
Alliant Energy Corp.		470		13,715
PG&E Corp.§		341		13,200
TECO Energy, Inc.§		1,050		12,968
National Fuel Gas Co.§		380		11,905
NV Energy, Inc.		980		9,692
Questar Corp.§		290		9,480
Edison International		270		8,672
AES Corp.*		1,050		8,652
Oneok, Inc.§		270		7,862
SCANA Corp.§		220		7,832
Energen Corp.§		220		6,453
Mirant Corp.*		310		5,850
Dominion Resources, Inc.§		160		5,734
PPL Corp.§		180		5,524
Public Service Enterprise Group, Inc.§		150		4,376
AGL Resources, Inc.§		130		4,076
NSTAR§		110		4,014
Sempra Energy§		90		3,837
Piedmont Natural Gas Co.§		120		3,800
New Jersey Resources Corp.§		90		3,542
WGL Holdings, Inc.§		100		3,269
Nicor, Inc.§		80		2,779
Northwest Natural Gas Co.§		60		2,654

			MARKET
	SHARES		VALUE
Wisconsin Energy Corp.§		60	$	2,519
Laclede Group, Inc.§		50		2,342
Integrys Energy Group, Inc.§		50		2,149
Total Utilities				384,521
INDUSTRIALS 2.5%
Iron Mountain, Inc.*		1,702		42,090
Brink’s Co.§		1,440		38,707
Ryder System, Inc.§		420		16,288
Southwest Airlines Co.		1,744		15,033
Alliant Techsystems, Inc.*§		150		12,864
Trinity Industries, Inc.§		630		9,929
Hubbell, Inc. — Class B§		300		9,804
Delta Air Lines, Inc.*		800		9,168
Burlington Northern Santa Fe Corp.§		120		9,085
Flowserve Corp.§		170		8,755
Continental Airlines, Inc. — Class B*		460		8,308
Timken Co.§		400		7,852
Valmont Industries, Inc.§		120		7,363
SPX Corp.§		180		7,299
Copart, Inc.*§		250		6,797
Northrop Grumman Corp.§		150		6,756
Norfolk Southern Corp.§		130		6,116
AMR Corp.*		560		5,975
Carlisle Companies, Inc.§		270		5,589
GATX Corp.§		180		5,575
UAL Corp.§		470		5,179
United Rentals, Inc.*		540		4,925
Union Pacific Corp.§		100		4,780
W.W. Grainger, Inc.§		60		4,730
McDermott International, Inc.*§		470		4,644
Deere & Co.§		120		4,598
Manitowoc Co., Inc.§		530		4,590
JetBlue Airways Corp.*		630		4,473
Steelcase, Inc. — Class A§		770		4,327
WESCO International, Inc.*		210		4,038
Gardner Denver, Inc.*§		170		3,968
J.B. Hunt Transport Services, Inc.§		150		3,940
Thomas & Betts Corporation*		160		3,843
Republic Services, Inc.§		150		3,718
Bucyrus International, Inc.§		200		3,704
Copa Holdings SA§		120		3,638
US Airways Group, Inc.*		470		3,633
Fluor Corp.§		80		3,590
Eaton Corp.§		70		3,480
SkyWest, Inc.		180		3,348
Waste Management, Inc.§		100		3,314
Kansas City Southern*§		170		3,239
Alaska Air Group, Inc.*		110		3,218
Quanta Services, Inc.*§		160		3,168
Allegiant Travel Co.*		60		2,914
General Cable Corp.*		160		2,830
Hertz Global Holdings, Inc.*		540		2,738
Manpower, Inc.§		80		2,719

38    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
CSX Corp.§		80	$	2,598
Terex Corp.*		140		2,425
Precision Castparts Corp.§		40		2,379
AirTran Holdings, Inc.*		500		2,220
MSC Industrial Direct Co.§		50		1,842
Caterpillar, Inc.§		40		1,787
Covanta Holding Corp.*§		80		1,757
Pentair, Inc.§		60		1,420
Lennox International, Inc.		40		1,292
Avis Budget Group, Inc.*		1,410		987
Foster Wheeler Ltd.*§		40		935
Joy Global, Inc.§		40		916
Boeing Co.		20		853
Kennametal, Inc.§		30		666
URS Corp.*		10		408
KBR, Inc.§		20		304
Kirby Corp.*		10		274
Oshkosh Corp.		20		178
Textron, Inc.		10		139
Total Industrials				370,019
CONSUMER STAPLES 2.5%
BJ’s Wholesale Club, Inc.*§		1,010		34,603
Alberto-Culver Co.		1,110		27,206
Procter & Gamble Co.§		410		25,346
Wal-Mart Stores, Inc.§		310		17,379
Herbalife Ltd.§		800		17,344
PepsiAmericas, Inc.§		800		16,288
General Mills, Inc.§		260		15,795
Del Monte Foods Co.		2,090		14,923
Dr Pepper Snapple Group, Inc.*§		910		14,787
Costco Wholesale Corp.§		270		14,175
Church & Dwight Co., Inc.§		240		13,469
Unilever NV§		450		11,047
Kraft Foods, Inc.§		380		10,203
Pepsi Bottling Group, Inc.§		440		9,904
NBTY, Inc.*§		620		9,703
Safeway, Inc.		400		9,508
Bunge Ltd.§		180		9,319
Molson Coors Brewing Co. — Class B§		190		9,295
CVS Caremark Corp.§		320		9,197
Reynolds American, Inc.§		220		8,868
SUPERVALU, INC.		580		8,468
Kimberly-Clark Corp.§		160		8,438
Altria Group, Inc.§		503		7,575
Kroger Co.§		190		5,018
Kellogg Co.§		100		4,385
Coca-Cola Enterprises, Inc.		350		4,210
Bare Escentuals, Inc.*		710		3,713
Sysco Corp.§		160		3,670
Cadbury PLC — SP ADR§		90		3,210
Hansen Natural Corp.*§		90		3,018
H.J. Heinz Co.§		80		3,008
Corn Products International, Inc.§		90		2,597

			MARKET
	SHARES		VALUE
Clorox Co.§		40	$	2,222
Archer-Daniels-Midland Co.§		70		2,018
Ruddick Corp.§		50		1,383
Casey’s General Stores, Inc.§		50		1,139
WD-40 Co.§		40		1,132
Winn-Dixie Stores, Inc.*§		70		1,127
McCormick & Co., Inc.§		30		956
United Natural Foods, Inc.*§		50		891
Whole Foods Market, Inc.		60		566
Total Consumer Staples				367,103
INFORMATION TECHNOLOGY 2.2%
Synopsys, Inc.*§		1,600		29,632
BMC Software, Inc.*§		670		18,030
Applied Materials, Inc.§		1,380		13,979
Cypress Semiconductor Corp.*§		3,010		13,455
Affiliated Computer Services, Inc. — Class A*§		290		13,325
Computer Sciences Corp.*§		350		12,299
Western Digital Corp.*§		920		10,534
EMC Corp*§		1,000		10,470
Hewlett-Packard Co.§		280		10,161
Ingram Micro, Inc. — Class A*§		700		9,373
Jabil Circuit, Inc.		1,340		9,045
WebMD Health Corp.*§		370		8,728
Zebra Technologies Corp. — Class A*§		420		8,509
Arrow Electronics, Inc.*§		440		8,289
National Instruments Corp.§		330		8,039
Avnet, Inc.*§		420		7,648
QLogic Corp.*§		550		7,392
Activision Blizzard Inc.*§		830		7,171
Fidelity National Information Services, Inc.§		440		7,159
Oracle Corp.*§		360		6,383
CommScope, Inc.*§		380		5,905
Global Payments, Inc.§		180		5,902
Novellus Systems, Inc.*§		470		5,800
MEMC Electronic Materials, Inc.*§		400		5,712
Compuware Corp.*§		760		5,130
Apple, Inc.*§		60		5,121
Qualcomm, Inc.§		140		5,016
Xerox Corp.		617		4,917
EchoStar Corp. — Class A*§		330		4,907
Seagate Technology		1,050		4,651
Nvidia Corp.*		510		4,116
Vishay Intertechnology, Inc.*		1,180		4,036
Linear Technology Corp.§		180		3,982
Intersil Corp. — Class A§		430		3,952
Xilinx, Inc.§		210		3,742
Cadence Design Systems, Inc.*		850		3,111
Microchip Technology, Inc.§		130		2,539
Fairchild Semiconductor International, Inc.*		410		2,005
Molex, Inc.§		130		1,884

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    39

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
Sun Microsystems, Inc.*		450	$	1,719
Broadridge Financial Solutions, Inc.§		130		1,630
Trimble Navigation Ltd.*§		70		1,513
Lender Processing Services, Inc.§		50		1,472
Juniper Networks, Inc.*§		80		1,401
CA, Inc.§		70		1,297
Convergys Corp.*		165		1,058
Accenture Ltd. — Class A		30		984
Sohu.com, Inc.*§		20		947
International Business Machines Corp.§		10		842
Micron Technology, Inc.*		260		686
Metavante Technologies, Inc.*§		40		644
NeuStar, Inc.*		30		574
Western Union Co.§		40		574
NCR Corp.*§		40		566
ANSYS, Inc.*§		20		558
Amphenol Corp.§		20		480
SanDisk Corp.*		40		384
Ciena Corp.*§		50		335
Salesforce.com, Inc.*		4		128
Total Information Technology				319,841
ENERGY 1.4%
SEACOR Holdings, Inc.*		390		25,993
ConocoPhillips		320		16,576
Cimarex Energy Co.		460		12,319
ENSCO International, Inc.		420		11,924
Anadarko Petroleum Corp.		300		11,565
Patterson-UTI Energy, Inc.		660		7,597
Unit Corp.*		270		7,214
Superior Energy Services*		430		6,850
Noble Corp.		310		6,848
Valero Energy Corp.		280		6,059
Mariner Energy, Inc.*		520		5,304
Atwood Oceanics, Inc.*		340		5,195
Helmerich & Payne, Inc.		220		5,005
Chesapeake Energy Corp.		300		4,851
National-Oilwell Varco, Inc.*		190		4,644
Quicksilver Resources, Inc.*		810		4,512
Rowan Companies, Inc.		250		3,975
Marathon Oil Corp.		140		3,830
FMC Technologies, Inc.*		160		3,813
Hess Corp.		70		3,755
Nabors Industries Ltd.*		280		3,352
EOG Resources, Inc.		50		3,329
Transocean LTD.*		70		3,307
PetroHawk Energy Corp.*		210		3,282
Tidewater, Inc.		80		3,222
Cabot Oil & Gas Corp.		110		2,860
Noble Energy, Inc.		50		2,461
Key Energy Services, Inc.*		550		2,425
Whiting Petroleum Corp.*		70		2,342
Cameron International Corp.*		110		2,255
Oil States International, Inc.*		120		2,243
Tesoro Corp.		170		2,239

			MARKET
	SHARES		VALUE
Apache Corp.		30	$	2,236
Forest Oil Corp.*		110		1,814
Global Industries Ltd.*		460		1,605
Williams Companies, Inc.		110		1,593
Chevron Corp.		20		1,479
Murphy Oil Corp.		30		1,330
Holly Corp.		70		1,276
Massey Energy Co.		90		1,241
Smith International, Inc.		40		916
Oceaneering International, Inc.*		30		874
W&T Offshore, Inc.		60		859
Helix Energy Solutions Group, Inc.*		110		796
XTO Energy, Inc.		20		705
Range Resources Corp.		20		688
Alpha Natural Resources, Inc.*		40		648
Pride International, Inc.*		40		639
Patriot Coal Corp.*		90		563
Cheniere Energy, Inc.*		50		143
Total Energy				210,551
TELECOMMUNICATION SERVICES 1.0%
Verizon Communications, Inc.§		1,090		36,951
MetroPCS Communications, Inc.*§		1,830		27,175
AT&T, Inc.§		830		23,655
Qwest Communications International, Inc.§		3,880		14,123
U.S. Cellular Corp.*§		280		12,107
American Tower Corp. — Class A*§		340		9,969
Deutsche Telekom AG — SP ADR§		630		9,639
Leap Wireless International, Inc. — Class B*§		100		2,689
Windstream Corp.§		250		2,300
Tele Norte Leste Participacoes SA — ADR§		150		2,088
CenturyTel, Inc.§		70		1,913
Frontier Communications Corp.§		210		1,835
tw telecom Inc.*§		150		1,271
NTELOS Holdings Corp.§		50		1,233
NII Holdings, Inc. — Class B*		50		909
Cbeyond, Inc.*§		50		799
Global Crossing*§		100		794
Iowa Telecommunications Services, Inc.§		50		714
Crown Castle International Corp.*§		20		352
Telephone & Data Systems, Inc.		10		318
Total Telecommunication Services				150,834
MATERIALS 1.0%
Crown Holdings, Inc.*§		1,070		20,544
Lubrizol Corp.§		350		12,737
Monsanto Co.§		160		11,256
Airgas, Inc.§		280		10,917
AptarGroup, Inc.§		280		9,867
Sonoco Products Co.§		350		8,106
CF Industries Holdings, Inc.§		150		7,374
Alcoa, Inc.§		620		6,981

40    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
AK Steel Holding Corp.§		630	$	5,872
Praxair, Inc.§		90		5,342
The Mosaic Co.§		140		4,844
Dow Chemical Co.§		300		4,527
Reliance Steel & Aluminum Co.§		220		4,387
Nalco Holding Co.§		370		4,270
International Paper Co.§		360		4,248
Allegheny Technologies, Inc.		130		3,319
Ashland, Inc.		310		3,258
Temple-Inland, Inc.§		660		3,168
Freeport-McMoRan Copper & Gold, Inc.		120		2,933
Albemarle Corp.§		100		2,230
Steel Dynamics, Inc.§		150		1,677
United States Steel Corp.§		40		1,488
Martin Marietta Materials, Inc.§		10		971
FMC Corp.§		20		895
PPG Industries, Inc.§		20		849
Sealed Air Corp.		45		672
Greif, Inc. — Class A§		10		334
Southern Copper Corp.§		20		321
Olympic Steel, Inc.		1		20
Total Materials				143,407
Total Common Stocks
(Cost $3,509,855)				3,565,692
EXCHANGE TRADED FUNDS 7.6%
iShares MSCI Emerging Markets Index Fund		23,480		586,296
Liberty All Star Equity Fund§		20,110		70,385
Eaton Vance Tax-Managed Buy-Write Income Fund§		5,520		69,166
Eaton Vance Tax-Managed Buy-Write Opportunities Fund§		6,710		68,442
First Trust Enhanced Equity Income Fund, Inc.§		7,710		68,233
Nuveen Equity Premium and Growth Fund§		6,350		68,135
Nuveen Core Equity Alpha Fund§		7,090		68,135
Nuveen Equity Premium Opportunity Fund§		6,300		67,284
Vanguard Emerging Markets ETF§		2,380		56,406
Total Exchange Traded Funds
(Cost $1,166,098)				1,122,482
		CONTRACTS
OPTIONS PURCHASED 0.2%
Put Options On:
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 840		16		35,000
Total Options Purchased
(Cost $88,061)				35,000

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 29.7%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	1,120,607	$	1,120,607
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,120,607		1,120,607
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		1,120,607		1,120,607
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,011,431		1,011,431
Total Repurchase Agreements
(Cost $4,373,252)				4,373,252
Total Long Securities 61.9%
(Cost $9,137,266)			$	9,096,426
		SHARES
COMMON STOCKS SOLD SHORT (18.9)%
TELECOMMUNICATION SERVICES (0.1)%
Level 3 Communications, Inc.*		890		(623	)
Sprint Nextel Corp.*		1,400		(2,562	)
SBA Communications Corp. — Class A*		490		(7,997	)
Total Telecommunication Services				(11,182	)
ENERGY (0.8)%
Southwestern Energy Co.*		10		(290	)
Foundation Coal Holdings, Inc.		60		(841	)
Sunoco, Inc.		20		(869	)
Walter Industries, Inc.		50		(875	)
Arch Coal, Inc.		60		(977	)
Frontier Oil Corp.		80		(1,010	)
SandRidge Energy, Inc.*		170		(1,045	)
Encore Acquisition Co.*		60		(1,531	)
Hercules Offshore, Inc.*		340		(1,615	)
Tetra Technologies, Inc.*		420		(2,041	)
Diamond Offshore Drilling, Inc.		40		(2,358	)
El Paso Corp.		380		(2,975	)
Southern Union Co.		230		(2,999	)
CONSOL Energy Inc.		110		(3,144	)
BJ Services Co.		310		(3,618	)
Continental Resources, Inc.*		180		(3,728	)
Schlumberger Ltd.		90		(3,810	)
Baker Hughes, Inc.		130		(4,169	)
CNX Gas Corp.*		160		(4,368	)
Peabody Energy Corp.		290		(6,598	)
Exterran Holdings, Inc.*		310		(6,603	)
Overseas Shipholding Group, Inc		180		(7,580	)
Plains Exploration & Production Co.*		330		(7,669	)
Teekay Corp.		410		(8,057	)
IHS, Inc.*		220		(8,232	)

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    41

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
Newfield Exploration Co.*		490	$	(9,678	)
Denbury Resources, Inc.*		1,350		(14,742	)
Total Energy				(111,422	)
MATERIALS (1.1)%
Olympic Steel, Inc.		1		(20	)
Louisiana-Pacific Corp.		120		(187	)
Smurfit-Stone Container Corp.*		960		(245	)
Century Aluminum Co.*		30		(300	)
RPM International, Inc.		30		(399	)
Sealed Air Corp.		35		(523	)
Carpenter Technology Corp.		30		(616	)
Cliffs Natural Resources, Inc.		30		(768	)
Commercial Metals Co.		70		(831	)
Nucor Corp.		20		(924	)
Titanium Metals Corp.		210		(1,850	)
Intrepid Potash, Inc.*		90		(1,869	)
Sigma-Aldrich Corp.		50		(2,112	)
Owens-Illinois, Inc.*		100		(2,733	)
International Flavors & Fragrances, Inc.		100		(2,972	)
Celanese Corp.		240		(2,983	)
Valhi, Inc.		390		(4,173	)
Eastman Chemical Co.		150		(4,757	)
Cabot Corp.		370		(5,661	)
Chemtura Corp.		4,370		(6,118	)
Scotts Miracle-Gro Co. — Class A		230		(6,836	)
Eagle Materials, Inc.		450		(8,285	)
Pactiv Corp.*		340		(8,459	)
Westlake Chemical Corp.		600		(9,774	)
Bemis Co., Inc.		480		(11,366	)
Weyerhaeuser Co.		430		(13,162	)
Valspar Corp.		1,000		(18,090	)
Ecolab, Inc.		600		(21,090	)
Newmont Mining Corp.		750		(30,525	)
Total Materials				(167,628	)
CONSUMER STAPLES (1.3)%
Altria Group, Inc.		3		(45	)
Tyson Foods, Inc. — Class A		10		(88	)
Central European Distribution Corp.*		10		(197	)
Rite Aid Corp.*		2,770		(853	)
Hormel Foods Corp.		70		(2,176	)
Coca-Cola Co.		80		(3,622	)
Walgreen Co.		250		(6,167	)
Philip Morris International, Inc.		180		(7,832	)
Smithfield Foods, Inc.*		650		(9,145	)
Dean Foods Co.*		750		(13,478	)
Constellation Brands, Inc. — Class A*		870		(13,720	)
Hershey Co.		510		(17,717	)
Colgate-Palmolive Co.		260		(17,820	)
ConAgra Foods, Inc.		1,100		(18,150	)
Sara Lee Corp.		2,230		(21,832	)

			MARKET
	SHARES		VALUE
Campbell Soup Co.		870	$	(26,109	)
Avon Products, Inc.		1,570		(37,727	)
Total Consumer Staples				(196,678	)
UTILITIES (1.5)%
PG&E Corp.		1		(39	)
American Electric Power Co., Inc.		10		(333	)
Northeast Utilities System		20		(481	)
Reliant Energy, Inc.*		170		(983	)
Consolidated Edison, Inc.		30		(1,168	)
NiSource, Inc.		180		(1,975	)
MDU Resources Group, Inc.		130		(2,805	)
Exelon Corp.		90		(5,005	)
Ameren Corp.		190		(6,319	)
Allegheny Energy, Inc.		200		(6,772	)
Dynegy, Inc. — Class A*		3,660		(7,320	)
CMS Energy Corp.		810		(8,189	)
Centerpoint Energy, Inc.		670		(8,455	)
Equitable Resources, Inc.		300		(10,065	)
Duke Energy Corp.		700		(10,507	)
Southern Co.		480		(17,760	)
OGE Energy Corp.		690		(17,788	)
Xcel Energy Inc.		980		(18,179	)
Aqua America, Inc.		1,950		(40,151	)
Hawaiian Electric Industries, Inc.		2,250		(49,815	)
Total Utilities				(214,109	)
CONSUMER DISCRETIONARY (2.3)%
Harte-Hanks, Inc.		30		(187	)
American Eagle Outfitters, Inc.		30		(281	)
RadioShack Corp.		27		(322	)
Jarden Corp.*		30		(345	)
Chico’s FAS, Inc.*		90		(376	)
Lowe’s Companies, Inc.		20		(430	)
Ryland Group, Inc.		30		(530	)
Coldwater Creek, Inc.*		220		(627	)
Harley-Davidson, Inc.		40		(679	)
Lamar Advertising Co. — Class A*		60		(753	)
Warner Music Group Corp.		260		(785	)
Office Depot, Inc.*		270		(805	)
Fortune Brands, Inc.		20		(826	)
Dollar Tree, Inc.*		20		(836	)
DISH Network Corp. — Class A*		80		(887	)
AutoNation, Inc.*		90		(889	)
Signet Jewelers Ltd.		110		(954	)
Harman International Industries, Inc.		60		(1,004	)
Starwood Hotels & Resorts Worldwide, Inc.		60		(1,074	)
Boyd Gaming Corp.		240		(1,135	)
Wynn Resorts, Ltd.*		30		(1,268	)
Penn National Gaming Inc.*		60		(1,283	)
Orient-Express Hotels Ltd. — Class A		210		(1,609	)
Cooper Industries Ltd. — Class A		60		(1,754	)

42    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
Macy’s, Inc.		200	$	(2,070	)
Interpublic Group of Companies, Inc.*		590		(2,336	)
Virgin Media, Inc.		490		(2,445	)
E.W. Scripps Co. — Class A		1,170		(2,586	)
International Game Technology		220		(2,616	)
Scientific Games Corp. — Class A*		150		(2,631	)
CarMax, Inc.*		360		(2,837	)
Jones Apparel Group, Inc.		570		(3,340	)
Liz Claiborne, Inc.		1,300		(3,380	)
Lennar Corp. — Class A		400		(3,468	)
Wyndham Worldwide Corp.		550		(3,602	)
DreamWorks Animation SKG, Inc. — Class A		143		(3,612	)
Panera Bread Co. — Class A*		70		(3,657	)
Brinker International, Inc.		350		(3,689	)
Las Vegas Sands Corp.*		630		(3,736	)
LKQ Corp.*		340		(3,964	)
Kohl’s Corp.*		120		(4,344	)
Federal-Mogul Corp.*		1,050		(4,441	)
NIKE, Inc. — Class B		90		(4,590	)
Hearst-Argyle Television, Inc.		850		(5,151	)
Mattel, Inc.		330		(5,280	)
Pool Corp.		300		(5,391	)
Goodyear Tire & Rubber Co.*		910		(5,433	)
Marriott International, Inc. — Class A		280		(5,446	)
Coach, Inc.*		280		(5,816	)
Morningstar, Inc.*		180		(6,390	)
Strayer Education, Inc.		30		(6,432	)
Thor Industries, Inc.		500		(6,590	)
Yum! Brands, Inc.		220		(6,930	)
Eastman Kodak Co.		1,110		(7,304	)
Starbucks Corp.*		830		(7,852	)
WABCO Holdings, Inc.		540		(8,527	)
NVR, Inc.*		20		(9,125	)
Saks, Inc.*		2,150		(9,417	)
Tim Hortons, Inc.		330		(9,517	)
Cablevision Systems Corp. — Class A		590		(9,936	)
Home Depot, Inc.		490		(11,280	)
Pulte Homes, Inc.		1,450		(15,848	)
Choice Hotels International, Inc.		560		(16,834	)
Scripps Networks Interactive, Inc. — Class A		790		(17,380	)
H&R Block, Inc.		1,000		(22,720	)
McDonald’s Corp.		380		(23,632	)
Toll Brothers, Inc.*		1,310		(28,073	)
Total Consumer Discretionary				(339,287	)
HEALTH CARE (2.3)%
Lincare Holdings Inc.		1		(27	)
UnitedHealth Group, Inc.		2		(53	)
King Pharmaceuticals, Inc.		7		(74	)
Celgene Corp.		4		(221	)

			MARKET
	SHARES		VALUE
Brookdale Senior Living Inc.		40	$	(223	)
PerkinElmer, Inc.		40		(556	)
Idexx Laboratories, Inc.*		20		(722	)
WellCare Health Plans, Inc.*		110		(1,415	)
Sepracor, Inc.*		140		(1,537	)
Omnicare, Inc.		60		(1,666	)
Cerner Corp.*		60		(2,307	)
Mylan, Inc.*		240		(2,374	)
Waters Corp.*		80		(2,932	)
PDL BioPharma, Inc.		480		(2,966	)
VCA Antech, Inc.*		180		(3,578	)
Health Management Associates, Inc. — Class A*		2,180		(3,902	)
Life Technologies Corp.*		170		(3,963	)
Hologic, Inc.*		310		(4,052	)
Edwards Lifesciences Corp.*		80		(4,396	)
IMS Health, Inc. — Class B		330		(5,003	)
Express Scripts, Inc.*		100		(5,498	)
Schering-Plough Corp.		370		(6,301	)
Tenet Healthcare Corp.*		5,830		(6,704	)
Amylin Pharmaceuticals, Inc.*		670		(7,269	)
Advanced Medical Optics, Inc.*		1,190		(7,866	)
Watson Pharmaceuticals, Inc.*		330		(8,768	)
Hospira, Inc.*		330		(8,851	)
CooperCompanies, Inc.		580		(9,512	)
Teleflex, Inc.		200		(10,020	)
BioMarin Pharmaceuticals, Inc.*		580		(10,324	)
Gilead Sciences, Inc.*		230		(11,762	)
Stryker Corp.		330		(13,184	)
Techne Corp.		240		(15,485	)
Merck & Company, Inc.		520		(15,808	)
Boston Scientific Corp.*		2,200		(17,028	)
Illumina, Inc.*		730		(19,017	)
HLTH Corp.*		2,070		(21,652	)
Genzyme Corp.*		350		(23,230	)
Allergan, Inc.		600		(24,192	)
Cephalon, Inc.*		350		(26,964	)
Covidien Ltd.		810		(29,354	)
Total Health Care				(340,756	)
INFORMATION TECHNOLOGY (2.6)%
Xerox Corp.		7		(56	)
ADC Telecommunications, Inc.*		11		(70	)
Convergys Corp.		15		(96	)
Teradata Corp.*		10		(148	)
VeriFone Holdings, Inc.*		50		(245	)
Lexmark International, Inc. — Class A*		10		(269	)
Sanmina-SCI Corp.*		760		(357	)
F5 Networks, Inc.*		20		(457	)
Equinix, Inc.*		10		(532	)
Autodesk, Inc.*		30		(589	)
MoneyGram International, Inc.*		620		(626	)
ON Semiconductor Corp.*		210		(714	)
DST Systems, Inc.*		20		(760	)
VMware, Inc.*		40		(948	)

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    43

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
Acxiom Corp.		120	$	(973	)
Kla-Tencor Corp.		50		(1,089	)
Yahoo!, Inc.*		90		(1,098	)
Unisys Corp.*		2,110		(1,793	)
Corning, Inc.		210		(2,001	)
JDS Uniphase Corp.*		570		(2,080	)
Dell, Inc.*		220		(2,253	)
Advanced Micro Devices, Inc.*		1,220		(2,635	)
Cognizant Technology Solutions Corp. — Class A*		150		(2,709	)
Marvell Technology Group Ltd.*		420		(2,801	)
Riverbed Technology, Inc.*		250		(2,848	)
MasterCard, Inc.		20		(2,859	)
Lam Research Corp.*		140		(2,979	)
Google, Inc. — Class A*		10		(3,077	)
eBay, Inc.*		230		(3,211	)
Total System Services, Inc.		250		(3,500	)
Brocade Communications Systems, Inc.*		1,520		(4,256	)
Teradyne, Inc.*		1,090		(4,600	)
Tech Data Corp.*		260		(4,638	)
Cree, Inc.*		360		(5,713	)
NetApp, Inc.*		410		(5,728	)
Salesforce.com, Inc.*		184		(5,890	)
Nuance Communications, Inc.*		620		(6,423	)
Novell, Inc.*		1,680		(6,535	)
Adobe Systems, Inc.*		320		(6,813	)
AVX Corp.		870		(6,908	)
Broadcom Corp. — Class A*		430		(7,297	)
Akamai Technologies, Inc.*		498		(7,515	)
Integrated Device Technology, Inc.*		1,490		(8,359	)
VeriSign, Inc.*		440		(8,395	)
Motorola, Inc.		1,960		(8,683	)
Mettler-Toledo International Inc.*		130		(8,762	)
Flir Systems, Inc.*		320		(9,818	)
Tyco Electronics Ltd.		610		(9,888	)
Rambus, Inc.*		670		(10,666	)
International Rectifier Corp.*		880		(11,880	)
LSI Logic Corp.*		3,720		(12,239	)
Visa Inc.		240		(12,588	)
Dolby Laboratories, Inc. — Class A*		390		(12,776	)
IAC/InterActiveCorp*		870		(13,685	)
Hewitt Associates, Inc. — Class A*		490		(13,906	)
Atmel Corp.*		5,320		(16,652	)
Tellabs, Inc.*		4,060		(16,727	)
Electronic Arts, Inc.*		1,050		(16,842	)
SAIC, Inc.*		1,020		(19,870	)
Altera Corp.		1,200		(20,052	)
Paychex, Inc.		770		(20,236	)
Diebold, Inc.		750		(21,068	)
Total Information Technology				(389,181	)

			MARKET
	SHARES		VALUE
INDUSTRIALS (2.8)%
General Dynamics Corp.		11	$	(577	)
Southwest Airlines Co.		74		(638	)
Armstrong World Industries, Inc		30		(649	)
Weatherford International Ltd.*		60		(649	)
Goodrich Corp.		30		(1,111	)
Danaher Corp.		20		(1,132	)
BE Aerospace, Inc.*		150		(1,153	)
Pall Corp.		60		(1,706	)
Graco, Inc.		80		(1,898	)
HNI Corp.		130		(2,059	)
Harsco Corp.		80		(2,214	)
Spirit Aerosystems Holdings, Inc. — Class A*		220		(2,237	)
Ingersoll-Rand Company Ltd. — Class A		130		(2,255	)
Cummins Inc.		90		(2,406	)
Shaw Group Inc.*		140		(2,866	)
Rockwell Automation, Inc.		90		(2,902	)
General Electric Co.		180		(2,916	)
Crane Co.		170		(2,931	)
Cintas Corp.		130		(3,020	)
AGCO Corp.*		130		(3,067	)
PACCAR Inc.		110		(3,146	)
Corrections Corp. of America*		200		(3,272	)
AMETEK, Inc.		120		(3,625	)
Masco Corp.		370		(4,118	)
USG Corp.*		610		(4,904	)
Robert Half International, Inc.		240		(4,997	)
Corporate Executive Board Co.		270		(5,956	)
Monster Worldwide, Inc.*		510		(6,166	)
Jacobs Engineering Group Inc.*		140		(6,734	)
Tyco International Ltd.		330		(7,128	)
FTI Consulting, Inc.*		160		(7,149	)
Donaldson Company, Inc.		230		(7,740	)
Con-way Inc.		310		(8,246	)
Rockwell Collins, Inc.		230		(8,991	)
First Solar, Inc.*		70		(9,657	)
SunPower Corp.*		270		(9,990	)
UTi Worldwide, Inc.		730		(10,468	)
Avery Dennison Corp.		340		(11,128	)
Fastenal Co.		380		(13,243	)
Expeditors International of Washington, Inc.		420		(13,973	)
FedEx Corp.		240		(15,396	)
Owens Corning, Inc.*		900		(15,570	)
CH Robinson Worldwide, Inc.		310		(17,059	)
Stericycle, Inc.*		370		(19,270	)
Landstar System, Inc.		720		(27,670	)
Dun & Bradstreet Corp.		390		(30,108	)
Pitney Bowes, Inc.		1,360		(34,653	)
United Parcel Service, Inc. — Class B		1,100		(60,676	)
Total Industrials				(409,419	)

44    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (continued)

December 31, 2008

     HEDGED EQUITY FUND

			MARKET
	SHARES		VALUE
FINANCIALS (4.1)%
Taubman Centers, Inc.		10	$	(254	)
CapitalSource, Inc.		60		(277	)
Endurance Specialty Holdings Ltd.		10		(305	)
TD Ameritrade Holding Corp.*		30		(427	)
Northern Trust Corp.		10		(521	)
XL Capital		170		(629	)
HRPT Properties Trust		230		(775	)
Unitrin, Inc.		50		(797	)
Legg Mason, Inc.		40		(876	)
MBIA, Inc.*		230		(936	)
SEI Investments Co.		60		(943	)
Colonial BancGroup, Inc.		560		(1,159	)
AMB Property Corp.		50		(1,171	)
Duke Realty Corp.		110		(1,206	)
T. Rowe Price Group, Inc.		40		(1,418	)
Whitney Holding Corp.		90		(1,439	)
Nasdaq OMX Group, Inc.*		60		(1,483	)
American Express Co.		80		(1,484	)
MGIC Investment Corp.		480		(1,670	)
Wells Fargo & Co.		60		(1,769	)
GLG Partners, Inc.		800		(1,816	)
Jefferies Group, Inc.		130		(1,828	)
Kimco Realty Corp.		110		(2,011	)
Old Republic International Corp.		190		(2,265	)
Liberty Property Trust		100		(2,283	)
East West Bancorp, Inc.		150		(2,395	)
AvalonBay Communities, Inc.		40		(2,423	)
Health Care REIT, Inc.		60		(2,532	)
Kilroy Realty Corp.		80		(2,677	)
First Citizens BancShares, Inc. — Class A		20		(3,056	)
Marshall & Ilsley Corp.		230		(3,137	)
Leucadia National Corp.*		160		(3,168	)
U.S. Bancorp		130		(3,251	)
E*Trade Financial Corp.*		3,020		(3,473	)
Cullen/Frost Bankers, Inc.		70		(3,548	)
KeyCorp		420		(3,578	)
Forest City Enterprises, Inc. — Class A		560		(3,752	)
Plum Creek Timber Company, Inc.		110		(3,821	)
MSCI, Inc. — Class A*		220		(3,907	)
BRE Properties, Inc.		140		(3,917	)
Citigroup, Inc.		600		(4,026	)
MF Global Ltd.*		2,010		(4,100	)
Zions Bancorporation		180		(4,412	)
Eaton Vance Corp.		210		(4,412	)
UDR, Inc.		340		(4,689	)
Brandywine Realty Trust		690		(5,320	)
Student Loan Corp.		140		(5,740	)
Allied Capital Corp.		2,140		(5,757	)
Morgan Stanley		370		(5,935	)

			MARKET
	SHARES		VALUE
Camden Property Trust		190	$	(5,955	)
Regency Centers Corp.		150		(7,005	)
First Horizon National Corp.		700		(7,399	)
Synovus Financial Corp.		940		(7,802	)
Popular, Inc.		1,590		(8,204	)
Conseco, Inc.*		1,600		(8,288	)
Equity Residential		280		(8,350	)
Moody’s Corp.		440		(8,840	)
Fifth Third Bancorp		1,110		(9,169	)
First American Corp.		320		(9,245	)
St Joe Co.*		390		(9,485	)
Public Storage		120		(9,540	)
Capitol Federal Financial		210		(9,576	)
Huntington Bancshares, Inc.		1,260		(9,652	)
New York Community Bancorp, Inc.		880		(10,525	)
Bank of America Corp.		760		(10,701	)
Fidelity National Financial, Inc — Class A		630		(11,182	)
SLM Corp.*		1,270		(11,303	)
Essex Property Trust, Inc.		150		(11,512	)
Simon Property Group, Inc.		220		(11,689	)
Franklin Resources, Inc.		210		(13,394	)
Ventas, Inc.		400		(13,428	)
Brown & Brown, Inc.		920		(19,228	)
PNC Financial Services Group, Inc.		420		(20,580	)
Lazard Ltd. — Class A		700		(20,818	)
Federal Realty Investment Trust		350		(21,728	)
Hudson City Bancorp, Inc.		1,380		(22,025	)
Digital Realty Trust, Inc.		700		(22,995	)
M&T Bank Corp.		420		(24,112	)
Marsh & McLennan Companies, Inc.		2,170		(52,666	)
TFS Financial Corp.		4,360		(56,244	)
Total Financials				(595,408	)
Total Common Stocks Sold Short
(Proceeds $2,843,299)				(2,775,070	)
		CONTRACTS
OPTIONS WRITTEN (1.1)%
Call Options On:
January 2009 S&P 500 Index Futures Contracts Expiring January 2009 with strike price of 880		16		(160,000	)
Total Options Written
(Premiums Received $168,739)				(160,000	)
Other Assets in Excess of Other Liabilities – 58.1%			$	8,548,997
Net Assets – 100.0%			$	14,710,353

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    45

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     HEDGED EQUITY FUND

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
FUTURES CONTRACTS PURCHASED
March 2009 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $5,448,025)		121	$	91,661
March 2009 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,175,460)		22		49,124
March 2009 Nikkei-225 Stock Average Index Futures Contracts (Aggregate Market Value of Contracts $735,600)		16		47,647
March 2009 Dow Jones STOXX 50 Futures Contracts (Aggregate Market Value of Contracts $1,061,588)		36		44,974
March 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,281,800)		26		27,000
(Total Aggregate Market Value of Contracts $9,702,473)			$	260,406
FUTURES CONTRACTS SOLD SHORT
March 2009 Dow Jones Euro STOXX 50 Index Futures Contracts (Aggregate Market Value of Contracts $211,379)		6	$	(18,213	)

*	Non-Income Producing Security.
†	Repurchase Agreements — See Note 6.
§	All or a portion of this security is pledged as short security collateral at December 31, 2008.
	ADR — American Depository Receipt.
	REIT — Real Estate Investment Trust.

46    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     INTERNATIONAL ROTATION FUND

			MARKET
	SHARES		VALUE
EXCHANGE TRADED FUNDS 13.5%
iShares MSCI Switzerland Index Fund		87,600	$	1,624,104
Total Exchange Traded Funds
(Cost $1,554,812)				1,624,104
		FACE
		AMOUNT
REPURCHASE AGREEMENTS† 73.3%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	2,268,629		2,268,629
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		2,268,629		2,268,629
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		2,268,629		2,268,629
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		2,047,606		2,047,606
Total Repurchase Agreements
(Cost $8,853,493)				8,853,493
Total Investments 86.8%
(Cost $10,408,305)			$	10,477,597
Other Assets in Excess of Liabilities – 13.2%			$	1,593,233
Net Assets – 100.0%			$	12,070,830
			Unrealized
		Contracts		Gain
CURRENCY FUTURES CONTRACTS
PURCHASED
March 2009 Japanese Yen Futures Contracts (Aggregate Market Value of Contracts $2,760,250)		20	$	32,294
FUTURES CONTRACTS PURCHASED
March 2009 FTSE 100 Index Futures Contracts (Aggregate Market Value of Contracts $4,446,451)		68	$	293,411
January 2009 OMX Stockholm 30 Index Futures Contracts (Aggregate Market Value of Contracts $918,621)		107		25,127
March 2009 S&P/Toronto Stock Exchange 60 Index Futures Contracts (Aggregate Market Value of Contracts $978,320)		11		67,589

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
March 2009 Nikkei-225 Stock Average Index Futures Contracts (Aggregate Market Value of Contracts $2,988,375)		65	$	191,528
January 2009 CAC 40 10 Euro Futures Contracts (Aggregate Market Value of Contracts $1,177,729)		26		35,072
(Total Aggregate Market Value of Contracts $10,509,496)			$	612,727
CURRENCY FUTURES CONTRACTS
SOLD SHORT
March 2009 Swiss Franc Futures Contracts (Aggregate Market Value of Contracts $1,526,688)		13	$	(159,174	)

† Repurchase Agreements — See Note 6.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    47

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2008

     MANAGED FUTURES STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENTS† 100.8%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09	$	1,656,169	$	1,656,169
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		1,656,169		1,656,169
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		1,656,169		1,656,169
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,494,814		1,494,814
Total Repurchase Agreements
(Cost $6,463,321)				6,463,321
Total Investments 100.8%
(Cost $6,463,321)			$	6,463,321
Liabilities in Excess of
Other Assets – (0.8)%			$	(50,532	)
Net Assets – 100.0%			$	6,412,789
			Unrealized
		Contracts		Gain
CURRENCY FUTURES CONTRACTS
PURCHASED
March 2009 Japanese Yen
Futures Contracts
(Aggregate Market Value
of Contracts $828,075)		6	$	19,172
FUTURES CONTRACTS PURCHASED
March 2009 U.S. Treasury Note
Futures Contracts
(Aggregate Market Value
of Contracts $502,813)		4	$	6,557
March 2009 U.S. Treasury Bond
Futures Contracts
(Aggregate Market Value
of Contracts $552,125)		4		12,994
(Total Aggregate Market Value of Contracts $1,054,938)			$	19,551
COMMODITY FUTURES CONTRACTS
SOLD SHORT
March 2009 Copper
Futures Contracts
(Aggregate Market Value
of Contracts $384,863)		11	$	52,370
February 2009 Live Cattle
Futures Contracts
(Aggregate Market Value
of Contracts $172,150)		5		14,849

			UNREALIZED
	CONTRACTS		Gain (Loss)
March 2009 Coffee
Futures Contracts
(Aggregate Market Value
of Contracts $126,056)		3	$	3,493
February 2009 Lean Hogs
Futures Contracts
(Aggregate Market Value
of Contracts $97,280)		4		2,356
March 2009 Sugar
Futures Contracts
(Aggregate Market Value
of Contracts $79,363)		6		981
June 2009 Lean Hogs
Futures Contracts
(Aggregate Market Value
of Contracts $63,920)		2		(91	)
June 2009 Live Cattle
Futures Contracts
(Aggregate Market Value
of Contracts $68,960)		2		(451	)
March 2009 Cotton
Futures Contracts
(Aggregate Market Value
of Contracts $73,530)		3		(3,834	)
March 2009 Corn
Futures Contracts
(Aggregate Market Value
of Contracts $325,600)		16		(8,328	)
March 2009 Silver
Futures Contracts
(Aggregate Market Value
of Contracts $113,750)		2		(13,010	)
March 2009 Wheat
Futures Contracts
(Aggregate Market Value
of Contracts $183,225)		6		(16,599	)
March 2009 Soybean
Futures Contracts
(Aggregate Market Value
of Contracts $392,000)		8		(19,621	)
March 2009 Cocoa
Futures Contracts
(Aggregate Market Value
of Contracts $79,950)		3		(21,540	)
February 2009 Gold
Futures Contracts
(Aggregate Market Value
of Contracts $264,150)		3		(43,287	)
(Total Aggregate Market Value
of Contracts $2,424,797)			$	(52,712	)

48    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     MANAGED FUTURES STRATEGY FUND

			UNREALIZED
	CONTRACTS		GAIN (LOSS)
CURRENCY FUTURES CONTRACTS
SOLD SHORT
March 2009 British Pound
Futures Contracts
(Aggregate Market Value
of Contracts $364,225)		4	$	3,015
March 2009 Canadian Dollar
Futures Contracts
(Aggregate Market Value
of Contracts $82,140)		1		(2,723	)
March 2009 Australian Dollar
Futures Contracts
(Aggregate Market Value
of Contracts $141,320)		2		(13,645	)
March 2009 Swiss Franc
Futures Contracts
(Aggregate Market Value
of Contracts $117,438)		1		(13,853	)
March 2009 Euro
Futures Contracts
(Aggregate Market Value
of Contracts $871,000)		5		(81,019	)
(Total Aggregate Market Value
of Contracts $1,576,123)			$	(108,225	)

† Repurchase Agreements — See Note 6.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    49

SCHEDULE OF INVESTMENTS

December 31, 2008

     REAL ESTATE FUND

			MARKET
	SHARES		VALUE
COMMON STOCKS 98.3%
REAL ESTATE INVESTMENT TRUST (REIT) 90.8%
SPECIALIZED REIT 26.4%
Public Storage		6,701	$	532,730
HCP, Inc.		13,031		361,871
Plum Creek Timber Co., Inc. (REIT)		9,389		326,174
Ventas, Inc.		8,929		299,746
Health Care REIT, Inc.		7,004		295,569
Host Hotels & Resorts, Inc.		34,466		260,908
Nationwide Health Properties, Inc.		8,262		237,285
Rayonier, Inc.		6,788		212,804
Senior Housing Properties Trust		11,451		205,202
Hospitality Properties Trust		12,705		188,923
Omega Healthcare Investors, Inc.		10,355		165,369
Healthcare Realty Trust, Inc.		6,976		163,796
Sovran Self Storage, Inc.		3,872		139,392
Entertainment Properties Trust		4,115		122,627
Extra Space Storage, Inc.		11,780		121,570
Potlatch Corp.		4,518		117,513
DiamondRock Hospitality Co.		21,158		107,271
LaSalle Hotel Properties		7,754		85,682
Medical Properties Trust Inc.		12,926		81,563
U-Store-It Trust		12,113		53,903
Total Specialized REIT				4,079,898
RETAIL REIT 18.5%
Simon Property Group, Inc.		8,285		440,182
Federal Realty Investment Trust		4,305		267,254
KIMCO Realty Corp.		14,575		266,431
Regency Centers Corp.		5,660		264,322
Realty Income Corp.		9,768		226,129
Equity One, Inc.		9,747		172,522
Weingarten Realty Investors		8,264		170,982
Tanger Factory Outlet Centers, Inc.		4,458		167,710
National Retail Properties, Inc.		9,279		159,506
Inland Real Estate Corp.		11,050		143,429
Taubman Centers, Inc.		5,632		143,391
Macerich Co.		6,325		114,862
Acadia Realty Trust		6,070		86,619
CBL & Associates Properties, Inc.		11,209		72,859
Pennsylvania Real Estate Investment Trust		8,440		62,878
Developers Diversified Realty Corp.		11,648		56,842
General Growth Properties, Inc.		32,841		42,365
Total Retail REIT				2,858,283
OFFICE REIT 14.5%
Boston Properties, Inc.		5,843		321,365
Digital Realty Trust, Inc.		6,311		207,317
Highwoods Properties, Inc.		7,294		199,564
Corporate Office Properties Trust SBI		5,986		183,770
Mack-Cali Realty Corp.		7,275		178,238

			MARKET
	SHARES		VALUE
Alexandria Real Estate Equities, Inc.		2,821	$	170,219
Douglas Emmett, Inc.		12,362		161,448
Duke Realty Corp.		14,048		153,966
Kilroy Realty Corp.		4,317		144,447
SL Green Realty Corp.		5,217		135,120
HRPT Properties Trust		32,855		110,721
BioMed Realty Trust, Inc.		9,331		109,359
Brandywine Realty Trust		13,280		102,389
Lexington Realty Trust		13,116		65,580
Total Office REIT				2,243,503
RESIDENTIAL REIT 13.6%
Equity Residential		12,873		383,873
AvalonBay Communities, Inc.		4,570		276,850
Essex Property Trust, Inc.		2,356		180,823
Camden Property Trust		5,575		174,720
UDR, Inc.		12,224		168,569
Home Properties, Inc.		3,941		160,005
BRE Properties, Inc. — Class A		5,419		151,624
Equity Lifestyle Properties, Inc.		3,636		139,477
Mid-America Apartment Communities, Inc.		3,687		137,009
American Campus Communities, Inc.		5,720		117,146
Apartment Investment &
Management Co. — Class A		9,233		106,641
Post Properties, Inc.		6,197		102,250
Total Residential REIT				2,098,987
MORTGAGE REIT 6.8%
Annaly Capital Management, Inc.		29,706		471,434
MFA Mortgage Investments, Inc.		27,625		162,711
Capstead Mortgage Corp.		11,000		118,470
CapitalSource, Inc.		24,820		114,669
Redwood Trust, Inc.		6,989		104,206
iStar Financial, Inc.		34,282		76,449
Total Mortgage REIT				1,047,939
DIVERSIFIED REIT 6.2%
Vornado Realty Trust		6,896		416,174
Liberty Property Trust		8,496		193,964
Washington Real Estate Investment Trust		5,980		169,234
Cousins Properties, Inc.		7,463		103,362
Colonial Properties Trust		8,804		73,337
Total Diversified REIT				956,071
INDUSTRIAL REIT 4.8%
ProLogis		14,598		202,766
AMB Property Corp.		8,120		190,170
Eastgroup Properties, Inc.		3,810		135,560
DCT Industrial Trust, Inc.		25,700		130,042
First Industrial Realty Trust, Inc.		7,951		60,030
DuPont Fabros Technology, Inc.		10,041		20,785
Total Industrial REIT				739,353
Total Real Estate Investment Trust (REIT)				14,024,034

50    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (concluded)

December 31, 2008

     REAL ESTATE FUND

			MARKET
	SHARES		VALUE
REAL ESTATE MANAGEMENT & DEVELOPMENT 7.5%
Brookfield Asset Management, Inc. — Class A		24,379	$	372,267
Brookfield Properties Corp.		27,686		214,013
The St. Joe Co.*		7,896		192,031
Jones Lang LaSalle, Inc.		4,728		130,965
CB Richard Ellis Group, Inc. — Class A*		23,610		101,995
Forestar Real Estate Group, Inc.*		7,980		75,970
Forest City Enterprises, Inc. — Class A		9,283		62,196
Total Real Estate Management & Development				1,149,437
Total Common Stocks
(Cost $14,306,911)				15,173,471
		FACE
		AMOUNT
REPURCHASE AGREEMENT† 1.0%
Credit Suisse Group
issued 12/31/08 at 0.03%
due 01/02/09	$	157,076		157,076
Total Repurchase Agreement
(Cost $157,076)				157,076
Total Investments 99.3%
(Cost $14,463,987)			$	15,330,547
Other Assets in Excess
of Liabilities – 0.7%			$	106,737
Net Assets – 100.0%			$	15,437,284

*	Non-Income Producing Security.
†	Repurchase Agreement — See Note 6.
	REIT — Estate Investment Trust.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    51

SCHEDULE OF INVESTMENTS

December 31, 2008

     STRENGTHENING DOLLAR 2x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 42.7%
Federal Farm Credit Bank* 0.25% due 01/02/09	$	1,000,000	$	1,000,000
Farmer Mac* 0.07% due 01/07/09		1,000,000		999,990
Federal Home Loan Bank* 0.20% due 01/06/09		1,000,000		999,978
Total Federal Agency Discount Notes
(Cost $2,999,968)				2,999,968
REPURCHASE AGREEMENTS† 53.0%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		953,804		953,804
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		953,804		953,804
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		953,804		953,804
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		860,879		860,879
Total Repurchase Agreements
(Cost $3,722,291)				3,722,291
Total Investments 95.7%
(Cost $6,722,259)			$	6,722,259
Other Assets in Excess
of Liabilities – 4.3%			$	301,317
Net Assets – 100.0%			$	7,023,576
			Unrealized
		Contracts		Loss
CURRENCY FUTURES CONTRACTS PURCHASED
March 2009 U.S. Dollar
Index Futures Contracts
(Aggregate Market Value
of Contracts $12,733,250)		155	$	(448,962	)
		UNITS
CURRENCY INDEX SWAP AGREEMENT
Goldman Sachs International
February 2009 U.S. Dollar
Index Swap, Terminating
02/25/09**
(Notional Market
Value $1,516,613)		18,503	$	(101,832	)

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	Total Return based on U.S. Dollar Index +/- financing at a variable rate.
†	Repurchase Agreements — See Note 6.

52    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     WEAKENING DOLLAR 2x STRATEGY FUND

	FACE		MARKET
	AMOUNT		VALUE
FEDERAL AGENCY DISCOUNT NOTES 13.7%
Farmer Mac*
0.07% due 01/07/09	$	500,000	$	499,994
Federal Home Loan Bank*
0.20% due 01/06/09		500,000		499,989
Freddie Mac**
0.05% due 01/20/09		500,000		499,988
Total Federal Agency Discount Notes
(Cost $1,499,971)				1,499,971
REPURCHASE AGREEMENTS† 73.0%
Mizuho Financial Group, Inc. issued 12/31/08 at 0.02% due 01/02/09		2,051,421		2,051,421
UBS Financial Services, Inc. issued 12/31/08 at 0.01% due 01/02/09		2,051,421		2,051,421
Morgan Stanley issued 12/31/08 at 0.01% due 01/02/09		2,051,421		2,051,421
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09		1,851,557		1,851,557
Total Repurchase Agreements
(Cost $8,005,820)				8,005,820
Total Investments 86.7%
(Cost $9,505,791)			$	9,505,791
Other Assets in Excess
of Liabilities – 13.3%			$	1,459,328
Net Assets – 100.0%			$	10,965,119
			Unrealized
		Contracts		Gain (Loss)
CURRENCY FUTURES CONTRACTS
SOLD SHORT
March 2009 U.S. Dollar Index
Futures Contracts
(Aggregate Market Value
of Contracts $12,240,350)		149	$	583,674
		UNITS
CURRENCY INDEX SWAP AGREEMENT
SOLD SHORT
Goldman Sachs International
February 2009 U.S. Dollar
Index Swap, Terminating
02/25/09††
(Notional Market
Value $9,775,635)		119,266	$	(50,744	)

*	The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
**	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.
†	Repurchase Agreements — See Note 6.
††	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    53

STATEMENTS OF ASSETS AND LIABILITIES

							Absolute			Alternative
	Multi-Cap			Sector			Return			Strategies
	Core Equity			Rotation			Strategies			Allocation
	Fund			Fund			Fund			Fund
Assets
Investment Securities	$	1,986,839		$	70,934,306		$	14,772,137		$	391,313
Investment Securities in Affiliated Funds		—			—			—			2,395,037
Repurchase Agreements		140,988			929,453			9,413,040			347,233
Total Investments		2,127,827			71,863,759			24,185,177			3,133,583
Segregated Cash with Broker		17,050			—			2,757,386			—
Cash		—			—			111,484			—
Deposits with Brokers for Securities Sold Short		—			—			10,092,024			—
Variation Margin on Futures Contracts		2,445			—			91,231			—
Receivable for Securities Sold		750			6,319,951			6,757,692			—
Receivable for Fund Shares Sold		9,787			9,341			49,393			7,459
Investment Income Receivable		3,356			171,443			19,464			—
Total Assets		2,161,215			78,364,494			44,063,851			3,141,042
Liabilities
Short Sales at Market Value		—			—			8,383,871			—
Written Options at Market Value		—			—			207,000			—
Unrealized Depreciation on Swap Agreements		—			—			—			—
Payable for Swap Settlement		—			—			—			—
Variation Margin on Futures Contracts		—			—			—			—
Payable for Securities Purchased		—			5,613,741			2,403,670			—
Payable for Fund Shares Redeemed		27			136,868			359			3,435
Investment Advisory Fees Payable		548			55,412			33,366			—
Transfer Agent and Administrative Fees Payable		444			15,392			—			—
Distribution and Service Fees Payable		444			15,392			—			—
Portfolio Accounting Fees Payable		177			6,157			—			—
Custody Fees Payable		58			2,051			—			—
Short Sales Dividends Payable		—			—			13,891			—
Other Accrued Fees		3,265			80,702			—			—
Total Liabilities		4,963			5,925,715			11,042,157			3,435
Net Assets	$	2,156,252		$	72,438,779		$	33,021,694		$	3,137,607
Net Assets Consist of
Paid-In Capital	$	3,997,297		$	109,956,077		$	40,996,275		$	3,863,115
Undistributed Net Investment Income		—			58,031			413,645			—
Accumulated Net Realized Gain (Loss) on Investments		(1,799,659	)		(38,099,652	)		(9,119,492	)		(26,526	)
Net Unrealized Appreciation (Depreciation) on Investments		(41,386	)		524,323			731,266			(698,982	)
Net Assets	$	2,156,252		$	72,438,779		$	33,021,694		$	3,137,607
Shares Outstanding		148,440			8,004,122			1,574,513			157,500
Net Asset Values	$	14.53		$	9.05		$	20.97		$	19.92
Cost of Investments	$	2,173,354		$	71,339,436		$	24,461,868		$	3,832,565
Proceeds from Short Sales		—			—			8,778,328			—
Premiums Received for Written Options		—			—			218,571			—

54    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

December 31, 2008

									Managed
									Futures						Strengthening			Weakening
Commodities			Hedged			International			Strategy						Dollar 2x			Dollar 2x
Strategy			Equity			Rotation			Fund			Real Estate			Strategy			Strategy
Fund			Fund			Fund			(Consolidated)			Fund			Fund			Fund
$	9,552,637		$	4,723,174		$	1,624,104		$	—		$	15,173,471		$	2,999,968		$	1,499,971
	—			—			—			—			—			—			—
	6,520,845			4,373,252			8,853,493			6,463,321			157,076			3,722,291			8,005,820
	16,073,482			9,096,426			10,477,597			6,463,321			15,330,547			6,722,259			9,505,791
	—			2,864,697			1,518,149			480,612			—			990,139			1,797,120
	—			117,527			148			—			—			—			—
	—			3,374,616			—			—			—			—			—
	—			119,326			196,607			—			—			57,354			—
	—			2,828,731			—			—			816,497			—			—
	242,644			—			—			43,475			273			—			22,861
	2,682			9,847			—			—			158,925			—			—
	16,318,808			18,411,170			12,192,501			6,987,408			16,306,242			7,769,752			11,325,772
	—			2,775,070			—			—			—			—			—
	—			160,000			—			—			—			—			—
	—			—			—			—			—			101,832			50,744
	—			—			—			—			—			166,407			130,550
	—			—			—			167,906			—			—			55,130
	492,864			712,446			91,338			—			—			—			—
	75			32,672			9,110			394,330			825,540			456,495			102,642
	4,834			14,795			8,504			4,143			10,270			7,861			7,235
	2,884			—			2,362			1,151			3,021			2,184			2,010
	2,884			—			2,362			1,151			3,021			2,184			2,010
	1,153			—			945			460			1,208			873			804
	389			—			308			154			406			281			262
	—			5,834			—			—			—			—			—
	32,408			—			6,742			5,324			25,492			8,059			9,266
	537,491			3,700,817			121,671			574,619			868,958			746,176			360,653
$	15,781,317		$	14,710,353		$	12,070,830		$	6,412,789		$	15,437,284		$	7,023,576		$	10,965,119
$	33,530,795		$	18,261,426		$	16,130,190		$	6,582,617		$	31,600,724		$	6,202,849		$	13,052,626
	234,352			119,261			89,971			—			761,295			—			2,388
	(17,801,737	)		(3,948,655	)		(4,704,470	)		(47,614	)		(17,791,295	)		1,371,521			(2,622,825	)
	(182,093	)		278,321			555,139			(122,214	)		866,560			(550,794	)		532,930
$	15,781,317		$	14,710,353		$	12,070,830		$	6,412,789		$	15,437,284		$	7,023,576		$	10,965,119
	1,375,994			766,681			701,676			266,082			881,433			330,489			436,914
$	11.47		$	19.19		$	17.20		$	24.10		$	17.51		$	21.25		$	25.10
$	16,255,575		$	9,137,266		$	10,408,305		$	6,463,321		$	14,463,987		$	6,722,259		$	9,505,791
	—			2,843,299			—			—			—			—			—
	—			168,739			—			—			—			—			—

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    55

STATEMENTS OF OPERATIONS

							Absolute			Alternative
	Multi-Cap			Sector			Return			Strategies
	Core Equity			Rotation			Strategies			Allocation
	Fund			Fund			Fund			Fund		**
Investment Income
Interest	$	4,100		$	43,379		$	418,687		$	570
Income from Securities Lending, net		5,543			96,536			14,284			—
Dividends, Net of Foreign Tax Withheld		83,823			1,714,250			424,786			—
Dividends from Affiliated Funds		—			—			—			51,478
Total Income		93,466			1,854,165			857,757			52,048
Expenses
Investment Advisory Fees		15,151			969,755			397,139			—
Transfer Agent and Administrative Fees		10,312			269,377			—			—
Audit and Outside Service Fees		2,541			61,806			—			—
Portfolio Accounting Fees		4,125			107,751			—			—
Registration Fees		18			6,944			—			—
Short Sales Dividend Expense		—			—			229,327			—
Trustees’ Fees*		638			10,806			—			—
Shareholder Service Fees		10,312			269,377			—			—
Custody Fees		1,330			36,895			—			16
Miscellaneous		2,073			63,413			—			—
Total Expenses		46,500			1,796,124			626,466			16
Less Expenses Waived by Advisor		—			—			—			—
Net Expenses		46,500			1,796,124			626,466			16
Net Investment Income (Loss)		46,966			58,041			231,291			52,032
Realized and Unrealized Gain (Loss)  on Investments
Net Realized Gain (Loss) on:
Investment Securities		(1,437,599	)		(37,950,846	)		(7,608,538	)		(60,345	)
Credit Default/Currency Index Swaps		—			—			(206,451	)		—
Futures Contracts		26,551			—			(7,785,068	)		—
Realized Gain Distributions Received from Affiliated Funds		—			—			—			46,996
Securities Sold Short		—			—			6,741,743			—
Written Options		—			—			1,640,894			—
Total Net Realized Gain (Loss)		(1,411,048	)		(37,950,846	)		(7,217,420	)		(13,349	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(138,343	)		(16,515,189	)		(1,372,006	)		(698,982	)
Credit Default/Currency Index Swaps		—			—			11,668			—
Futures Contracts		4,141			—			760,043			—
Securities Sold Short		—			—			214,955			—
Net Change in Unrealized Appreciation (Depreciation)		(134,202	)		(16,515,189	)		(385,340	)		(698,982	)
Net Gain (Loss) on Investments		(1,545,250	)		(54,466,035	)		(7,602,760	)		(712,331	)
Net Increase (Decrease) in Net Assets from Operations	$	(1,498,284	)	$	(54,407,994	)	$	(7,371,469	)	$	(660,299	)
Rebate Income on Proceeds for Securities Sold Short,
included in Interest	$	—		$	—		$	130,463		$	—
Foreign Tax Withheld		22			28,618			90			—

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
**	Since the commencement of operations: March 27, 2008 — International Rotation Fund; May 1, 2008 — Alternative Strategies Allocation Fund; November 7, 2008 — Managed Futures Strategy Fund.

56    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Year Ended December 31, 2008

									Managed
									Futures						Strengthening			Weakening
Commodities			Hedged			International			Strategy						Dollar 2x			Dollar 2x
Strategy			Equity			Rotation			Fund			Real Estate			Strategy			Strategy
Fund			Fund			Fund		**	(Consolidated)		**	Fund			Fund			Fund
$	990,332		$	113,188		$	67,238		$	928		$	1,845		$	97,501		$	255,196
	24,141			3,286			—			—			56,308			—			—
	—			129,767			58,644			—			1,175,356			—			—
	—			—			—			—			—			—			—
	1,014,473			246,241			125,882			928			1,233,509			97,501			255,196
	411,151			117,181			65,227			6,758			248,750			68,170			120,412
	137,050			—			18,119			1,878			73,162			18,936			33,448
	25,374			—			4,963			1,006			19,925			6,080			7,051
	54,820			—			7,248			751			29,265			7,575			13,379
	88			—			71			3,787			198			1,460			2,631
	—			81,259			—			—			—			—			—
	5,229			—			476			6			4,540			607			1,377
	137,050			—			18,119			1,878			73,162			18,936			33,448
	14,563			—			696			246			8,595			2,110			3,593
	33,673			1,460			4,758			652			14,617			4,514			8,735
	818,998			199,900			119,677			16,962			472,214			128,388			224,074
	(111,808	)		—			—			—			—			—			—
	707,190			199,900			119,677			16,962			472,214			128,388			224,074
	307,283			46,341			6,205			(16,034	)		761,295			(30,887	)		31,122
	(13,451,471	)		(1,906,705	)		(1,303,125	)		—			(13,156,711	)		—			—
	—			—			—			—			—			276,598			(326,750	)
	—			(3,530,268	)		(3,317,579	)		(47,614	)		—			1,275,165			(2,288,149	)
	—			—			—			—			—			—			—
	—			1,852,657			—			—			—			—			—
	—			798,828			—			—			—			—			—
	(13,451,471	)		(2,785,488	)		(4,620,704	)		(47,614	)		(13,156,711	)		1,551,763			(2,614,899	)
	(2,863,792	)		(411,529	)		69,292			—			(4,120,215	)		—			—
	—			—			—			—			—			(217,791	)		198,607
	—			270,127			485,847			(122,214	)		—			(448,962	)		583,673
	—			(28,234	)		—			—			—			—			—
	(2,863,792	)		(169,636	)		555,139			(122,214	)		(4,120,215	)		(666,753	)		782,280
	(16,315,263	)		(2,955,124	)		(4,065,565	)		(169,828	)		(17,276,926	)		885,010			(1,832,619	)
$	(16,007,980	)	$	(2,908,783	)	$	(4,059,360	)	$	(185,862	)	$	(16,515,631	)	$	854,123		$	(1,801,497	)
$	—		$	56,176		$	—		$	—		$	—		$	—		$	—
	—			505			—			—			4,659			—			—

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    57

STATEMENTS OF CHANGES IN NET ASSETS

	Multi-Cap						Sector Rotation
	Core Equity Fund						Fund
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income (Loss)	$	46,966		$	50,109		$	58,041		$	(141,252	)
Net Realized Gain (Loss) on Investments		(1,411,048	)		103,836			(37,950,846	)		6,536,938
Net Change in Unrealized Appreciation (Depreciation) on Investments		(134,202	)		(528,643	)		(16,515,189	)		10,979,956
Net Increase (Decrease) in Net Assets from Operations		(1,498,284	)		(374,698	)		(54,407,994	)		17,375,642
Distributions to Shareholders from:**
Net Investment Income		(65,755	)		(47,289	)		—			—
Realized Gain on Investments		(4,768	)		(627,576	)		(291,136	)		(9,242,522	)
Total Distributions to Shareholders		(70,523	)		(674,865	)		(291,136	)		(9,242,522	)
Share Transactions
Proceeds from Shares Purchased		8,746,774			17,377,068			80,844,781			86,281,041
Value of Shares Purchased through Dividend Reinvestment		70,523			674,865			291,136			9,242,522
Cost of Shares Redeemed		(11,352,016	)		(19,100,510	)		(84,164,328	)		(61,162,925	)
Net Increase (Decrease) in Net Assets From Share Transactions		(2,534,719	)		(1,048,577	)		(3,028,411	)		34,360,638
Net Increase (Decrease) in Net Assets		(4,103,526	)		(2,098,140	)		(57,727,541	)		42,493,758
Net Assets — Beginning of Period		6,259,778			8,357,918			130,166,320			87,672,562
Net Assets — End of Period	$	2,156,252		$	6,259,778		$	72,438,779		$	130,166,320
Undistributed Net Investment Income (Loss)—End of Period	$	—		$	16,207		$	58,031		$	—

*	Since commencement of operations: May 1, 2008
**	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

58    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Absolute Return						Alternative Strategies			Commodities
Strategies Fund						Allocation Fund			Strategy Fund
Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,
2008			2007			2008*			2008			2007
$	231,291		$	982,074		$	52,032		$	307,283		$	868,166
	(7,217,420	)		(1,300,460	)		(13,349	)		(13,451,471	)		2,653,291
	(385,340	)		1,222,709			(698,982	)		(2,863,792	)		3,443,547
	(7,371,469	)		904,323			(660,299	)		(16,007,980	)		6,965,004
	(182,633	)		(1,160,768	)		(57,472	)		(868,009	)		—
	—			(299,606	)		(7,737	)		—			—
	(182,633	)		(1,460,374	)		(65,209	)		(868,009	)		—
	47,170,223			58,867,136			7,459,676			104,615,008			58,614,571
	182,633			1,460,374			65,209			868,009			—
	(38,213,591	)		(50,892,241	)		(3,661,770	)		(116,449,304	)		(42,225,252	)
	9,139,265			9,435,269			3,863,115			(10,966,287	)		16,389,319
	1,585,163			8,879,218			3,137,607			(27,842,276	)		23,354,323
	31,436,531			22,557,313			—			43,623,593			20,269,270
$	33,021,694		$	31,436,531		$	3,137,607		$	15,781,317		$	43,623,593
$	413,645		$	135,808		$	—		$	234,352		$	742,556

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    59

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

							International
	Hedged Equity Fund						Rotation Fund
	Year			Year			Year
	Ended			Ended			Ended
	December 31,			December 31,			December 31,
	2008			2007			2008		*
From Operations
Net Investment Income (Loss)	$	46,341		$	500,077		$	6,205
Net Realized Gain (Loss) on Investments		(2,785,488	)		(870,707	)		(4,620,704	)
Net Change in Unrealized Appreciation (Depreciation) on Investments		(169,636	)		492,130			555,139
Net Increase (Decrease) in Net Assets from Operations		(2,908,783	)		121,500			(4,059,360	)
Distributions to Shareholders from:
Net Investment Income		(199,366	)		(481,106	)		—
Realized Gain on Investments		—			(155,142	)		—
Total Distributions to Shareholders		(199,366	)		(636,248	)		—
Share Transactions
Proceeds from Shares Purchased		20,651,001			31,887,844			36,068,454
Value of Shares Purchased through Dividend Reinvestment		199,366			636,248			—
Cost of Shares Redeemed		(13,540,786	)		(34,837,609	)		(19,938,264	)
Net Increase (Decrease) in Net Assets From Share Transactions		7,309,581			(2,313,517	)		16,130,190
Net Increase (Decrease) in Net Assets		4,201,432			(2,828,265	)		12,070,830
Net Assets—Beginning of Period		10,508,921			13,337,186			—
Net Assets—End of Period	$	14,710,353		$	10,508,921		$	12,070,830
Undistributed Net Investment Income (Loss)—End of Period	$	119,261		$	199,366		$	89,971

* Since the commencement of operations: March 27, 2008 — International Rotation Fund; November 7, 2008 — Managed Futures Strategy Fund.

60    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Managed Futures
Strategy Fund									Strengthening Dollar						Weakening Dollar
(Consolidated)			Real Estate Fund						2x Strategy Fund						2x Strategy Fund
Year			Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2008		*	2008			2007			2008			2007			2008			2007
$	(16,034	)	$	761,295		$	738,299		$	(30,887	)	$	109,851		$	31,122		$	305,987
	(47,614	)		(13,156,711	)		5,595,169			1,551,763			(570,238	)		(2,614,899	)		1,286,126
	(122,214	)		(4,120,215	)		(14,164,706	)		(666,753	)		102,303			782,280			(180,374	)
	(185,862	)		(16,515,631	)		(7,831,238	)		854,123			(358,084	)		(1,801,497	)		1,411,739
	—			(158,229	)		(801,864	)		—			—			—			(1,887,531	)
	—			(1,593,470	)		(3,999,999	)		—			—			—			—
	—			(1,751,699	)		(4,801,863	)		—			—			—			(1,887,531	)
	13,398,186			91,378,382			138,815,523			72,985,664			41,147,482			83,354,318			46,842,262
	—			1,751,699			4,801,863			—			—			—			1,887,531
	(6,799,535	)		(91,182,051	)		(182,408,436	)		(70,821,866	)		(39,850,297	)		(84,166,541	)		(45,830,646	)
	6,598,651			1,948,030			(38,791,050	)		2,163,798			1,297,185			(812,223	)		2,899,147
	6,412,789			(16,319,300	)		(51,424,151	)		3,017,921			939,101			(2,613,720	)		2,423,355
	—			31,756,584			83,180,735			4,005,655			3,066,554			13,578,839			11,155,484
$	6,412,789		$	15,437,284		$	31,756,584		$	7,023,576		$	4,005,655		$	10,965,119		$	13,578,839
$	—		$	761,295		$	175,005		$	—		$	(149,355	)	$	2,388		$	(36,660	)

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    61

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.

																													RATIOS TO
																													AVERAGE NET ASSETS:
									Net Increase
						Net Realized			(Decrease) in																																			Net Assets,
	NET ASSET		Net			and Unrealized			Net Asset			Distributions			Distributions						Net Increase			NET ASSET														Net						End of
	VALUE,		Investment			Gains			Value			from Net			from Net						(Decrease) in			VALUE,		Total												Investment			Portfolio			Period
	BEGINNING OF		Income			(Losses) on			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Net			Operating			Income			Turnover			(000’s
Year Ended	PERIOD		(Loss)†			Investments			Operations			Income§			Gains§			Distributions			Value			PERIOD		Return†††			Expenses			Expenses			Expenses††			(Loss)			Rate			omitted)
Multi-Cap Core Equity Fund
December 31, 2008		$24.64		$ .24			$  (9.88	)		$  (9.64	)		$  (.44	)		$  (.03	)		$  (.47	)		$ (10.11	)		$ 14.53		(38.96	)%		1.13	%		1.13	%		1.13	%		1.14	%		373	%		$  2,156
December 31, 2007		28.60		.16			(1.63	)		(1.47	)		(.17	)		(2.32	)		(2.49	)		(3.96	)		24.64		(5.26	)%		1.27	%		1.27	%		1.27	%		0.55	%		245	%		6,260
December 31, 2006		25.04		.08			3.52			3.60			(.01	)		(.03	)		(.04	)		3.56			28.60		14.36	%		1.43	%		1.43	%		1.43	%		0.29	%		171	%		8,358
December 31, 2005*		25.00		.01			.03			.04			—			—			—			.04			25.04		0.16	%		1.67	%**		1.67	%**		1.67	%**		0.33	%**		8	%		2,860
Sector Rotation Fund
December 31, 2008		15.33		.01			(6.25	)		(6.24	)		—			(.04	)		(.04	)		(6.28	)		9.05		(40.73	)%		1.67	%		1.67	%		1.67	%		0.05	%		463	%		72,439
December 31, 2007		13.47		(.02	)		3.10			3.08			—			(1.22	)		(1.22	)		1.86			15.33		22.75	%		1.61	%		1.61	%		1.61	%		(0.15	)%		277	%		130,166
December 31, 2006		12.68		(.02	)		1.48			1.46			—			(.67	)		(.67	)		.79			13.47		11.47	%		1.64	%		1.64	%		1.64	%		(0.16	)%		353	%		87,673
December 31, 2005		11.16		(.02	)		1.54			1.52			—			—			—			1.52			12.68		13.62	%		1.70	%		1.70	%		1.70	%		(0.20	)%		281	%		61,834
December 31, 2004		10.08		(.05	)		1.13			1.08			—			—			—			1.08			11.16		10.71	%		1.63	%		1.63	%		1.63	%		(0.52	)%		333	%		27,747
Absolute Return Strategies Fund
December 31, 2008		25.95		.16			(5.02	)		(4.86	)		(.12	)		—			(.12	)		(4.98	)		20.97		(18.72	)%		1.81	%		1.81	%		1.15	%		0.67	%		1,447	%		33,022
December 31, 2007		26.20		.74			.27			1.01			(1.00	)		(.26	)		(1.26	)		(.25	)		25.95		3.84	%		1.69	%		1.69	%		1.17	%		2.72	%		421	%		31,437
December 31, 2006		25.20		.80			.87			1.67			(.30	)		(.37	)		(.67	)		1.00			26.20		6.64	%		1.70	%		1.70	%		1.16	%		3.08	%		309	%		22,557
December 31, 2005*		25.00		.05			.15			.20			—			—			—			.20			25.20		0.80	%		1.45	%**		1.45	%**		1.20	%**		2.28	%**		19	%		3,323
Alternative Strategies Allocation Fund
December 31, 2008*		25.00		.38			(5.02	)		(4.64	)		(.39	)		(.05	)		(.44	)		(5.08	)		19.92		(18.55	)%		0.00	%**		0.00	%**		0.00	%**		2.47	%**		33	%		3,138
Commodities Strategy Fund
December 31, 2008		23.78		.15			(11.69	)		(11.54	)		(.77	)		—			(.77	)		(12.31	)		11.47		(49.02	)%		1.50	%		1.29	%		1.29	%		0.56	%		427	%		15,781
December 31, 2007		18.15		.71			4.92			5.63			—			—			—			5.63			23.78		31.02	%		1.48	%		1.28	%		1.28	%		3.52	%		346	%		43,624
December 31, 2006		22.10		.50			(4.45	)		(3.95	)		—			—			—			(3.95	)		18.15		(17.87	)%		1.50	%		1.31	%		1.31	%		2.34	%		109	%		20,269
December 31, 2005*		25.00		.14			(2.98	)		(2.84	)		(.06	)		—			(.06	)		(2.90	)		22.10		(11.34	)%		1.64	%**		1.64	%**		1.64	%**		2.41	%**		—			28,187
Hedged Equity Fund
December 31, 2008		25.54		.10			(6.20	)		(6.10	)		(.25	)		—			(.25	)		(6.35	)		19.19		(23.84	)%		1.96	%		1.96	%		1.16	%		0.45	%		1,362	%		14,710
December 31, 2007		26.34		.88			(.03	)		.85			(1.25	)		(.40	)		(1.65	)		(.80	)		25.54		3.16	%		1.81	%		1.81	%		1.18	%		3.25	%		413	%		10,509
December 31, 2006		25.21		.84			1.23			2.07			(.33	)		(.61	)		(.94	)		1.13			26.34		8.20	%		1.93	%		1.93	%		1.15	%		3.21	%		360	%		13,337
December 31, 2005*		25.00		.04			.20			.24			(.03	)		—			(.03	)		.21			25.21		0.94	%		1.96	%**		1.96	%**		1.19	%**		1.62	%**		10	%		3,376
International Rotation Fund
December 31, 2008*		25.00		.01			(7.81	)		(7.80	)		—			—			—			(7.80	)		17.20		(31.20	)%		1.64	%**		1.64	%**		1.64	%**		0.09	%**		362	%		12,071
Managed Futures Strategy Fund (Consolidated)
December 31, 2008*		25.00		(.08	)		(.82	)		(.90	)		—			—			—			(.90	)		24.10		(3.60	)%		2.21	%**		2.21	%**		2.21	%**		(2.09)	%**		—			6,413
Real Estate Fund
December 31, 2008		34.35		.79			(15.47	)		(14.68	)		(.20	)		(1.96	)		(2.16	)		(16.84	)		17.51		(41.64	)%		1.62	%		1.62	%		1.62	%		2.61	%		288	%		15,437
December 31, 2007		50.25		.63			(10.02	)		(9.39	)		(1.09	)		(5.42	)		(6.51	)		(15.90	)		34.35		(19.12	)%		1.60	%		1.60	%		1.60	%		1.28	%		226	%		31,757
December 31, 2006		40.30		.72			11.68			12.40			(.83	)		(1.62	)		(2.45	)		9.95			50.25		30.72	%		1.60	%		1.60	%		1.60	%		1.54	%		532	%		83,181
December 31, 2005		38.02		.71			2.01			2.72			(.44	)		—			(.44	)		2.28			40.30		7.15	%		1.59	%		1.59	%		1.59	%		1.84	%		774	%		29,074
December 31, 2004		30.25		1.02			7.79			8.81			(.14	)		(.90	)		(1.04	)		7.77			38.02		29.54	%		1.59	%		1.59	%		1.59	%		3.06	%		1,139	%		26,915
Strengthening Dollar 2x Strategy Fund
December 31, 2008		20.13		(.08	)		1.20			1.12			—			—			—			1.12			21.25		5.56	%		1.69	%		1.69	%		1.69	%		(0.41	)%		--			7,024
December 31, 2007		22.59		.70			(3.16	)		(2.46	)		—			—			—			(2.46	)		20.13		(10.89	)%		1.61	%		1.61	%		1.61	%		3.26	%		—			4,006
December 31, 2006		25.62		.79			(3.51	)		(2.72	)		(.31	)		—			(.31	)		(3.03	)		22.59		(10.63	)%		1.65	%		1.65	%		1.65	%		3.33	%		—			3,067
December 31, 2005*		25.00		.14			.65			.79			(.17	)		—			(.17	)		.62			25.62		3.16	%		1.78	%**		1.78	%**		1.78	%**		2.11	%**		—			1,250

62    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

FINANCIAL HIGHLIGHTS (concluded)

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.

																									RATIOS TO
																									AVERAGE NET ASSETS:
								Net Increase
					Net Realized			(Decrease) in																												Net Assets,
	NET ASSET				and Unrealized			Net Asset			Distributions			Distributions						Net Increase			NET ASSET													End of
	VALUE,		Net		Gains			Value			from Net			from Net						(Decrease) in			VALUE,		Total						Net			Portfolio		Period
	BEGINNING OF		Investment		(Losses) on			Resulting from			Investment			Realized			Total			Net Asset			END OF		Investment			Total			Investment			Turnover		(000’s
Year Ended	PERIOD		Income†		Investments			Operations			Income			Gains			Distributions			Value			PERIOD		Return†††			Expenses			Income			Rate		omitted)
Weakening Dollar 2x Strategy Fund
December 31, 2008		$28.60		$.07		$(3.57	)		$(3.50	)		$     —			$     —			$     —			$(3.50	)		$25.10		(12.24	)%		1.68	%		0.23	%		—		$10,965
December 31, 2007		27.51		.89		4.15			5.04			(3.95	)		—			(3.95	)		1.09			28.60		18.12	%		1.64	%		3.02	%		—		13,579
December 31, 2006		24.31		.93		3.14			4.07			(.86	)		(.01	)		(.87	)		3.20			27.51		16.72	%		1.65	%		3.46	%		—		11,155
December 31, 2005*		25.00		.15		(.78	)		(.63	)		(.06	)		—			(.06	)		(.69	)		24.31		(2.53	)%		1.76	%**		2.28	%**		—		2,954

*	Since the commencement of operations: September 30, 2005 — Commodities Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund; November 29, 2005 — Absolute Return Strategies Fund, Hedged Equity Fund, and Multi-Cap Core Equity Fund; March 27, 2008 — International Rotation Fund; May 1, 2008 — Alternative Strategies Allocation Fund; November 7, 2008 — Managed Futures Strategy Fund.
**	Annualized
†	Calculated using the average daily shares outstanding for the year.
††	Operating Expenses exclude short dividends expense.
†††	Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
§	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    63

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, 2008, the Trust consisted of fifty-eight separate funds. This report covers the Alternative Strategy 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 primarily in other Rydex mutual funds (the “underlying funds”) instead of individual securities.

Valu-Trac Investment Management Limited serves as the investment sub-advisor to the International Rotation Fund and is responsible for the development and on-going maintenance of the investment management strategy utilized by that Fund.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, Inc. (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor are affiliated entities.

Consolidation of Subsidiary

For the Managed Futures Strategy Fund (“MFS”), the consolidated financial statements include the accounts of its wholly-owned and controlled Cayman Islands subsidiary (“the Subsidiary”). Significant intercompany accounts and transactions have been eliminated in consolidation.

MFS may invest up to 25% of its total assets in the Subsidiary which acts as an investment vehicle in order to effect certain investments consistent with MFS’s investment objectives and policies. A subscription agreement was entered into between MFS and the Subsidiary on November 7, 2008, comprising the entire issued share capital of the Subsidiary with the intent that MFS will remain the sole shareholder and retain all rights. At December 31, 2008, net assets of MFS were approximately $6.4 million, of which approximately $0.9 million, or approximately 13%, represented MFS’s ownership of all issued shares and voting rights of the Subsidiary.

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.

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.

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.

Debt securities in a non 2a-7 money market fund with a maturity greater than 60 days are valued at the last traded fill price at the close of business, unless no trades were executed. If there are no trades, a 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 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.

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 foreign equity and index 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 price at

64    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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.

Structured notes are valued in accordance with the terms of their agreements at the value of the underlying index close, usually 4:00 p.m., adjusted for any interest accruals and financing charges. If the securities comprising the underlying index cease trading before a Fund’s close of business, the index will be fair valued with the use of an appropriate market indicator.

Investments for which market quotations are not readily available are fair valued as determined in good faith by Rydex Investments 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. 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 records 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. Upon the purchase of an option by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, that Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, that Fund will realize a gain or loss depending on whether the proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, that Fund will realize 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 a Fund exercises a call option, the cost of the security purchased by that Fund upon exercise will be increased by the premium originally paid. When a 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 a Fund enters into a closing purchase transaction, that Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the option was sold).

F. The Trust may enter into stock and bond index futures contracts and options on such 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.

G. The Trust may enter 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,

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    65

NOTES TO FINANCIAL STATEMENTS (continued)

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 Trust may enter into credit default swap agreements where one party, the protection buyer, makes an upfront or periodic payment to counterparty, the protection seller, in exchange for the right to receive a contingent payment. The maximum amount of the payment may equal the notional amount, at par, of the underlying index or security as a result of a related credit event. Upfront payments received or made by a Fund, are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. The credit default contracts 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 a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

H. The Trust may invest in structured notes, which are over-the-counter contracts linked to the performance of an underlying benchmark such as interest rates, equity markets, equity indices, commodities indices, corporate credits or foreign exchange markets. A structured note is a type of bond in which an issuer borrows money from investors and pays back the principal, adjusted for performance of the underlying benchmark, at a specified maturity date. In addition, the contract may require periodic interest payments. Structured notes are used to obtain exposure to a market without owning or taking physical custody of securities or commodities. Fluctuations in value of the structured notes are recorded as unrealized gains and losses in the accompanying financial statements. Coupon payments are recorded as income while net payments are recorded as net realized gains or losses.

I. 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.

J. The Trust may enter into forward currency contracts primarily to hedge against foreign currency exchange rate risks on its non-U.S. dollar denominated investment securities. When entering into a forward currency contract, a Fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily and the corresponding unrealized gain or loss on the contracts, as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the Statement of Assets and Liabilities. Realized and unrealized gains and losses are included in the Statement of Operations.

K. 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, and enter into repurchase agreements.

L. 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.

M. 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 Trust may utilize short sales and a variety of derivative instruments, including options, futures, options on 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.

Short sales are transactions 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.

66    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

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.

There are several risks associated with the use of structured notes. Structured notes are leveraged, thereby providing an exposure to the underlying benchmark greater than the face amount and increasing the volatility of each note relative to the change in the underlying linked financial instrument. A highly liquid secondary market may not exist for the structured notes a Fund invests in, which may make it difficult for that Fund to sell the structured notes it holds at an acceptable price or to accurately value them. In addition, structured notes are subject to the risk that the counterparty to the instrument, or issuer, might not pay interest when due or repay principal at maturity of the obligation. Although the Trust will not invest in any structured notes unless Rydex Investments believes that the issuer is creditworthy, a Fund does bear the risk of loss of the amount expected to be received in the event of the default or bankruptcy of the issuer.

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 Rydex Investments 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.

There are several risks associated with credit default swaps. Credit default swaps involve the exchange of a fixed-rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor,” receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return, the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. A Fund may enter into credit default swaps in which that Fund or its counterparty acts as guarantor. By acting as the guarantor of a swap, that Fund assumes the market and credit risk of the underlying instrument, including liquidity and loss of value.

In conjunction with the use of short sales, options, futures, options on 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, options, futures contracts, options on 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.    Call Options Written

Transactions in options written during the year ended December 31, 2008, were as follows:

	Absolute Return Strategies Fund						Hedged Equity Fund
	Number of			Premiums			Number of			Premiums
	Contracts			Received			Contracts			Received
Options outstanding at December 31, 2007		—		$	—			—		$	—
Options written		1,989			3,737,355			636			1,822,094
Options terminated in closing purchase transactions		(882	)		(2,583,863	)		(178	)		(1,145,901	)
Options expired		(767	)		(880,741	)		(202	)		(469,054	)
Options exercised		(250	)		(54,180	)		(240	)		(38,400	)
Options outstanding at December 31, 2008		90		$	218,571			16		$	168,739

4.    Fees And Other Transactions With Affiliates

Under the terms of an investment advisory contract, the Trust pays Rydex Investments investment advisory fees calculated at an annualized rate of 0.75% of the average daily net assets of the Commodities Strategy Fund; 0.85% of the average daily net assets of the Real Estate Fund; 0.90% of the average daily net assets of the Sector Rotation Fund, the International Rotation Fund, the Managed Futures Strategy Fund, the Strengthening Dollar 2x Strategy Fund and the Weakening Dollar 2x Strategy Fund; and

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NOTES TO FINANCIAL STATEMENTS (continued)

1.15% of the average daily net assets of the Absolute Return Strategies Fund and the Hedged Equity Fund. The Alternative Strategies Allocation Fund does not pay Rydex Investments a management fee.

Also under the terms of the investment advisory contract, the Trustees voted to implement a performance adjustment for the Multi-Cap Core Equity Fund which pays Rydex Investments an investment advisory fee calculated at a basic annual fee rate of 0.70% of the average daily net assets of this Fund, adding or subtracting a performance rate up to 0.20%. The basic annual fee rate, along with the performance adjustment allows the total fee to increase to a maximum of 0.90% or decrease to a minimum of 0.50%, depending on the investment performance of the Fund relative to the Russell 3000 Index (the “Index”). The performance comparison will be made for a rolling 12 month period, with performance adjustments made at the end of each month. Because the performance adjustment is applied relative to the performance of the Index, Rydex Investments could receive a positive performance adjustment even during periods where the Fund’s performance is negative. At December 31, 2008, the effective management fee was 0.50% of the Fund’s average daily net assets.

Effective May 1, 2006, Rydex Investments has contractually agreed to waive its advisory fee to the extent necessary to limit the ordinary operating expenses of the Commodities Strategy Fund (but excluding interest expenses, brokerage commissions and extraordinary expenses) to not more than 1.29% per annum of the average monthly net assets of the Fund (the “Contractual Fee Waiver”). The Contractual Fee Waiver may not be modified or eliminated prior to May 1, 2009, except with the approval of the Board of Trustees. There is no guarantee that the contractual fee waiver will continue beyond May 1, 2009.

As part of its agreement with the Trust, Rydex Investments will pay all expenses of the Absolute Return Strategies Fund and Hedged Equity 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.

Rydex Investments 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, Rydex Investments 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.

Rydex Investments 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 Absolute Return Strategies, Hedged Equity and Alternative Strategies Allocation Funds are paid by Rydex Investments, as previously noted.

Rydex Investments 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 Absolute Return Strategies, Hedged Equity and Alternative Strategies Allocation Funds are paid by Rydex Investments, as previously noted.

Rydex Investments 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 Absolute Return Strategies, Hedged Equity and Alternative Strategies Allocation Funds are paid by Rydex Investments, as previously noted. Organizational and setup costs for new funds are paid by the Trust.

The Trust has adopted an Investor Services Plan for which the Distributor and other firms that provide shareholder services (“Service Providers”) may receive compensation. The Trust will pay fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets. The Distributor, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs.

Certain officers and trustees of the Trust are also officers of Rydex Investments.

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 2005 — 2008), and has concluded that no provision for income tax is required in the Funds’ financial statements.

68    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The MFS Fund intends to invest up to 25% of its 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 MFS Fund has received a private letter ruling from the IRS that concludes that the income the MFS Fund receives 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, constructive sales, unsettled short sales and excise tax regulations.

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. 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.

The tax character of distributions paid during the year ended December 31, 2008, was as follows:

	Ordinary		Long-Term		Return of			Total
Fund	Income		Capital Gain		Capital			Distributions
Multi-Cap Core Equity Fund	$	67,381	$	854	$	2,288		$	70,523
Sector Rotation Fund		172,587		118,549		—			291,136
Absolute Return Strategies Fund		182,633		—		—			182,633
Alternative Strategies Allocation Fund		59,769		5,440		—			65,209
Commodities Strategy Fund		868,009		—		—			868,009
Hedged Equity Fund		199,366		—		—			199,366
International Rotation Fund		—		—		—			—
Managed Futures Strategy Fund		—		—		—			—
Real Estate Fund		566,262		1,185,437		—			1,751,699
Strengthening Dollar 2x Strategy Fund		—		—		—			—
Weakening Dollar 2x Strategy Fund		—		—		—			—
The tax character of distributions paid during the year ended December 31, 2007, was as follows:
			Ordinary		Long-Term			Total
Fund			Income		Capital Gain			Distributions
Multi-Cap Core Equity Fund			$	459,022	$	215,843		$	674,865
Sector Rotation Fund				6,533,253		2,709,269			9,242,522
Absolute Return Strategies Fund				1,347,557		112,817			1,460,374
Commodities Strategy Fund				—		—			—
Hedged Equity Fund				544,568		91,680			636,248
Real Estate Fund				2,801,863		2,000,000			4,801,863
Strengthening Dollar 2x Strategy Fund				—		—			—
Weakening Dollar 2x Strategy Fund				1,887,531		—			1,887,531
The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was as follows:
	Undistributed		Undistributed		Net Unrealized
	Ordinary		Long-Term		Appreciation			Capital Loss
Fund	Income		Capital Gain		(Depreciation)			Carryforward
Multi-Cap Core Equity Fund	$	—	$	—	$	(439,816	)	$	(1,071,208	)1
Sector Rotation Fund		58,031		—		(1,509,627	)		(36,065,702	)1
Absolute Return Strategies Fund		431,428		—		(2,449,466	)		(5,544,011	)1
Alternative Strategies Allocation Fund		—		17,968		(743,476	)		—
Commodities Strategy Fund		240,716		—		(1,651,379	)		(8,628,326	)1
Hedged Equity Fund		119,333		—		(732,995	)		(2,553,289	)1
International Rotation Fund		89,971		—		197,044			(3,673,745	)1
Managed Futures Strategy Fund		—		—		(52,712	)		—
Real Estate Fund		761,296		—		(12,605,205	)		(4,319,531	)1
Strengthening Dollar 2x Strategy Fund		830,466		1,532,863		—			—
Weakening Dollar 2x Strategy Fund		2,388		—		—			(2,089,895	)1

Capital Loss Carryforward amounts may be limited due to Treasury Regulations.

¹ A summary of the expiration of the afore mentioned Capital Loss Carryforward is as follows:

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NOTES TO FINANCIAL STATEMENTS (continued)

										Total
	Expires in			Expires in			Expires in			Capital Loss
Fund	2014			2015			2016			Carryforward
Multi-Cap Core Equity Fund	$	—		$	—		$	(1,071,208	)	$	(1,071,208	)
Sector Rotation Fund		—			—			(36,065,702	)		(36,065,702	)
Absolute Return Strategies Fund		—			(114,736	)		(5,429,275	)		(5,544,011	)
Commodities Strategy Fund		(3,821,179	)		—			(4,807,147	)		(8,628,326	)
Hedged Equity Fund		—			(324,447	)		(2,228,842	)		(2,553,289	)
International Rotation Fund		—			—			(3,673,745	)		(3,673,745	)
Real Estate Fund		—			—			(4,319,531	)		(4,319,531	)
Weakening Dollar 2x Strategy Fund		—			—			(2,089,895	)		(2,089,895	)

At December 31, 2008, 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)
Multi-Cap Core Equity Fund	$	2,567,643	$	—	$	(439,816	)	$	(439,816	)
Sector Rotation Fund		73,373,386		1,652,311		(3,161,938	)		(1,509,627	)
Absolute Return Strategies Fund		27,054,962		—		(2,869,785	)		(2,869,785	)
Alternative Strategies Allocation Fund		3,877,059		5,100		(748,576	)		(743,476	)
Commodities Strategy Fund		17,724,861		—		(1,651,379	)		(1,651,379	)
Hedged Equity Fund		9,924,411		—		(827,985	)		(827,985	)
International Rotation Fund		10,701,752		—		(224,155	)		(224,155	)
Managed Futures Strategy Fund		6,463,321		—		—			—
Real Estate Fund		27,935,752		—		(12,605,205	)		(12,605,205	)
Strengthening Dollar 2x Strategy Fund		6,722,259		—		—			—
Weakening Dollar 2x Strategy Fund		9,505,791		—		—			—

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, 2008, 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, 2009:

Fund	Capital
Multi-Cap Core Equity Fund	$	(330,021	)
Absolute Return Strategies Fund		(235,986	)
Commodities Strategy Fund		(7,710,489	)
Hedged Equity Fund		(295,951	)
International Rotation Fund		(672,630	)
Managed Futures Strategy Fund		(117,116	)
Strengthening Dollar 2x Strategy Fund		(1,542,602	)

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, 2008, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.03% due 01/02/09		$49,841,465		$49,841,465		$49,841,548
Mizuho Financial Group, Inc.	0.02% due 01/02/09		45,000,000		45,000,000		45,000,050
Morgan Stanley	0.01% due 01/02/09		45,000,000		45,000,000		45,000,025
UBS Financial Services	0.01% due 01/02/09		45,000,000		45,000,000		45,000,025
					$184,841,465		$184,841,648

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NOTES TO FINANCIAL STATEMENTS (continued)

     At December 31, 2008, 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		08/31/09 - 08/15/18		1.500% - 5.125	%	$	69,022,000	$	76,858,108
U.S. Treasury Bill		05/07/09		—			45,906,500		45,900,073
U.S. TIP Bond		01/15/26		2.000%			43,599,000		45,900,318
U.S. TIP Note		01/15/10		4.250%			15,365,000		19,837,560
U.S. Treasury Bond		02/15/19 - 05/15/30		6.250% - 8.875	%		31,000		47,724
								$	188,543,783

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

Effective January 1, 2008, the Funds adopted Statement of Financial Accounting Standard No. 157 (“FAS 157”), Fair Value Measurement, which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications.

Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels:

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, 2008:

			Level 1					Level 2					Level 3
	Level 1		Other			Level 2		Other			Level 3		Other
	Investments		Financial			Investments		Financial			Investments		Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	In Securities		Instruments		*	Total
Assets
Multi-Cap Core Equity Fund	$	2,127,827	$	4,141		$	—	$	—		$	—	$	—		$	2,131,968
Sector Rotation Fund		71,863,759		—			—		—			—		—			71,863,759
Absolute Return Strategies Fund		24,185,177		228,149			—		373,780			—		—			24,787,106
Alternative Strategies
Allocation Fund		3,133,583		—			—		—			—		—			3,133,583
Commodities Strategy Fund		9,181,575		—			6,891,907		—			—		—			16,073,482
Hedged Equity Fund		9,096,426		167,785			—		74,408			—		—			9,338,619
International Rotation Fund		10,477,597		—			—		485,847			—		—			10,963,444
Managed Futures Strategy Fund		6,463,321		19,551			—		—			—		—			6,482,872
Real Estate Fund		15,330,547		—			—		—			—		—			15,330,547
Strengthening Dollar 2x
Strategy Fund		3,722,291		—			2,999,968		—			—		—			6,722,259
Weakening Dollar 2x Strategy Fund		8,005,820		—			1,499,971		583,674			—		—			10,089,465

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    71

NOTES TO FINANCIAL STATEMENTS (continued)

			Level 1					Level 2					Level 3
	Level 1		Other			Level 2		Other			Level 3		Other
	Investments		Financial			Investments		Financial			Investments		Financial
Fund	In Securities		Instruments		*	In Securities		Instruments		*	In Securities		Instruments		*	Total
Liabilities
Multi-Cap Core Equity Fund	$	—	$	—		$	—	$	—		$	—	$	—		$	—
Sector Rotation Fund		—		—			—		—			—		—			—
Absolute Return Strategies Fund		8,590,871		—			—		—			—		—			8,590,871
Alternative Strategies
Allocation Fund		—		—			—		—			—		—			—
Commodities Strategy Fund		—		—			—		—			—		—			—
Hedged Equity Fund		2,935,070		—			—		—			—		—			2,935,070
International Rotation Fund		—		—			—		—			—		—			—
Managed Futures Strategy Fund		—		—			—		141,765			—		—			141,765
Real Estate Fund		—		—			—		—			—		—			—
Strengthening Dollar 2x
Strategy Fund		—		—			—		550,794			—		—			550,794
Weakening Dollar 2x Strategy Fund		—		—			—		50,744			—		—			50,744

* Other Financial Instruments may include forward foreign currency contracts, futures and/or swaps, which are reported as unrealized gain/loss at period end.

8.    Securities Transactions

For the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

	Multi-Cap				Absolute		Alternative
	Core Equity		Sector		Return		Strategies		Commodities		Hedged Equity
	Fund		Rotation Fund		Strategies Fund		Allocation Fund		Strategy Fund		Fund
Purchases	$	14,561,380	$	491,772,250	$	259,108,778	$	4,566,878	$	115,315,787	$	73,983,437
Sales	$	17,245,776	$	491,301,189	$	255,414,499	$	1,015,761	$	114,577,156	$	72,171,543
			Managed				Strengthening		Weakening
	International		Futures		Real Estate		Dollar 2x		Dollar 2x
	Rotation Fund		Strategy Fund		Fund		Strategy Fund		Strategy Fund
Purchases	$	10,737,568	$	—	$	84,892,801	$	—	$	—
Sales	$	7,879,631	$	—	$	83,521,532	$	—	$	—

72    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

9.    Share Transactions

The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:

					Purchased through										Net Shares
	Shares Purchased				Dividend Reinvestment				Shares Redeemed						Purchased (Redeemed)
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended			Year Ended			Year Ended			Year Ended
	December 31,		December 31,		December 31,		December 31,		December 31,			December 31,			December 31,			December 31,
	2008		2007		2008		2007		2008			2007			2008			2007
Multi-Cap Core Equity Fund		418,904		593,772		5,220		26,962		(529,721	)		(658,918	)		(105,597	)		(38,184	)
Sector Rotation Fund		6,296,915		5,545,419		31,993		594,757		(6,818,374	)		(4,156,364	)		(489,466	)		1,983,812
Absolute Return Strategies Fund		1,975,336		2,178,075		8,961		56,017		(1,621,124	)		(1,883,864	)		363,173			350,228
Alternative Strategies Allocation Fund*		311,690		—		3,305		—		(157,495	)		—			157,500			—
Commodities Strategy Fund		4,158,528		2,868,931		64,154		—		(4,680,834	)		(2,151,804	)		(458,152	)		717,127
Hedged Equity Fund		962,427		1,166,016		10,667		24,651		(617,859	)		(1,285,651	)		355,235			(94,984	)
International Rotation Fund**		1,576,225		—		—		—		(874,549	)		—			701,676			—
Managed Futures Strategy Fund***		537,705		—		—		—		(271,623	)		—			266,082			—
Real Estate Fund		2,996,630		2,845,450		117,564		135,036		(3,157,297	)		(3,711,330	)		(43,103	)		(730,844	)
Strengthening Dollar 2x Strategy Fund		3,732,267		1,926,266		—		—		(3,600,795	)		(1,862,970	)		131,472			63,296
Weakening Dollar 2x Strategy Fund		2,983,339		1,565,858		—		65,042		(3,021,150	)		(1,561,649	)		(37,811	)		69,251

*	Since the inception date: May 1, 2008.
**	Since the inception date: March 27, 2008.
***	Since the inception date: November 7, 2008.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    73

NOTES TO FINANCIAL STATEMENTS (concluded)

10.    Portfolio Securities Loaned

During the year ended December 31, 2008, certain Funds lent their securities to approved brokers to earn additional income. Security lending income shown on the statement of operations is shown net of rebates paid to borrowers and earnings on cash collateral investments shared with the lending agent. As of December 31, 2008, all Funds had ceased participation in securities lending.

11.    Change in Independent Registered Public Accounting Firm

The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).

The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.

12.    New Accounting Pronouncements

In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how entities use derivatives, how they are accounted for and how they affect the financial position and operations of that entity. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management is evaluating the impact of FAS 161 on its current disclosures.

74    |    THE RYDEX 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 of Multi-Cap Core Equity Fund, Sector Rotation Fund, Absolute Return Strategies Fund, Alternative Strategies Allocation Fund, Commodities Strategy Fund, Hedged Equity Fund, International Rotation Fund, Managed Futures Strategy Fund (Consolidated), Real Estate Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (eleven of the series constituting the Rydex Variable Trust) (the “Funds”) including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year 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 statements of changes in net assets for the year ended December 31, 2007 and 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 statements and 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, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, 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 each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 26, 2009

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    75

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
Multi-Cap Core Equity Fund		80.83	%
Sector Rotation Fund		10.67	%
Absolute Return Strategies Fund		24.48	%
Hedged Equity Fund		17.68	%

The Funds’ distributions to shareholders included:

	Multi-Cap		Sector		Real
	Core Equity		Rotation		Estate
	Fund		Fund		Fund
From long-term capital gains, subject to the 15% rate gains category:	$	854	$	118,549	$	1,185,437

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 1-800-820-0888. 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 1-800-820-0888. 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 1-800-820-0888.

76    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, 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 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

TRUSTEES AND OFFICERS

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Carl G. Verboncoeur*	Rydex Series Funds – 2004	160
Trustee, President (1952)	Rydex Variable Trust – 2004
	Rydex Dynamic Funds – 2004
	Rydex ETF Trust – 2004
Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to present) Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present)
Michael P. Byrum*	Rydex Series Funds – 2005	160
Trustee, Vice President	Rydex Variable Trust – 2005
(1970)	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); 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); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)

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	151
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	151
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	151
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	151
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)

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    77

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Thomas F. Lydon, Jr.	Rydex Series Funds – 2005	151
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	151
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	151
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Nick Bonos* Vice President and Treasurer (1963)	Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present); 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 (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	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, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, 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.

78    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

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9601 Blackwell Road, Suite 500
Rockville, MD 20850
www.rydexinvestments.com
800.820.0888
RVAALTS-ANN-2-1208x1209

DECEMBER 31, 2008

RYDEX VARIABLE TRUST ANNUAL REPORT

ESSENTIAL PORTFOLIOS

ESSENTIAL PORTFOLIO CONSERVATIVE FUND

ESSENTIAL PORTFOLIO MODERATE FUND

ESSENTIAL PORTFOLIO AGGRESSIVE FUND

GO GREEN! ELIMINATE MAILBOX CLUTTER Go paperless with Rydex eDelivery—a service giving you full online access to account information and documents. Save time, cut down on mailbox clutter and be a friend to the environment with eDelivery. With Rydex eDelivery you can: · View online confirmations and statements at your convenience. · Receive email notifications when your most recent confirmations, statements and other account documents are available for review. · Access prospectuses, annual reports and semiannual reports online. It’s easy to enroll: 1/ Visit www.rydexinvestments.com 2/ Click on the Rydex eDelivery logo 3/ Follow the simple enrollment instructions RYDEX E DELIVERY If you have questions about Rydex eDelivery services, contact one of our Shareholder Service Representatives at 800.820.0888.

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, Inc.

TABLE OF CONTENTS

LETTER TO OUR SHAREHOLDERS   2

ABOUT SHAREHOLDERS’ FUND EXPENSES   4

PERFORMANCE REPORTS AND FUND PROFILES   6

SCHEDULES OF INVESTMENTS   12

STATEMENTS OF ASSETS AND LIABILITIES   15

STATEMENTS OF OPERATIONS   16

STATEMENTS OF CHANGES IN NET ASSETS   18

FINANCIAL HIGHLIGHTS   20

NOTES TO FINANCIAL STATEMENTS   21

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   28

OTHER INFORMATION   29

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS   30

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Securities markets across the world plummeted in 2008 as the subprime housing crisis (which has its origins here in the U.S.), led to a global financial panic that tipped the world economy into recession as the year came to a close.

Economies in the developed markets entered a negative feedback loop of wealth destruction, low confidence and job losses leading to a massive consumer pullback. This, in turn, led to truncated spending plans and additional layoffs by businesses.

Investment strategies of all shapes and sizes were pummeled. Hiding places were almost non-existent, as what turned out to be a wrenching bear market spared none of the major asset classes aside from U.S. Treasury securities.

It was a year of negative superlatives: Unemployment claims reached quarter-century highs, U.S. government bond yields reached never-before seen lows (and turning negative in some cases), home sales fell to levels not seen since the 1990s and the struggling auto market reported sales falling to 1980s levels.

Given this economic carnage, one should not be surprised that stocks turned in one of their worst annual performances on record, with the S&P 500^® Index’s 37.0% decline marking the worst calendar-year performance for stocks since 1937. Markets swung wildly, with measures of stock market volatility reaching highs not seen in decades. Daily swings of two, three, four or five percent became commonplace.

Stock markets staged a strong rally after reaching late-November lows and while credit markets remained largely shut, there were incremental signs of improvement. Government—at all levels—has intervened on a massive scale. By one estimate, the federal government has guaranteed, loaned or purchased more than $8.5 trillion of financial assets, an amount equivalent to more than half of U.S. GDP. Investing in both alternative investments and alternative strategies were used to opportunistically adjust the Fund’s beta to associated market risk and reduce any additional risk for the long-term.

The real question still remains: Will it all work? The year-end rally suggests that the market has digested the perilous state of the global economy and is looking toward a recovery in the latter half of 2009. Market sentiment, however, remains fragile and will certainly be tested. A stream of bad news on employment, retail sales and manufacturing will continue well into 2009.

In this environment, it is important that investors keep an eye on their long-term investment goals and utilize this opportunity to rebalance their portfolios and, in the process, take advantage of the many bargains to be found in today’s markets. Perhaps most importantly, we think investors will be well served by investment alternatives that can insulate them from the vagaries of global stock markets and can profit from volatility in what will almost certainly remain a challenging market going forward.

We appreciate the trust you have placed in our firm’s quality and integrity by investing with us.

Sincerely,

/s/ Michael Byrum Michael Byrum 
President & Chief Investment Officer 

2    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

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THE RYDEX 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, 2008 and ending December 31, 2008.

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 VARIABLE TRUST ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

				Beginning		Ending		Expenses
	Expense			Account Value		Account Value		Paid During
	Ratio		†	June 30, 2008		December 31, 2008		Period		*
Table 1. Based on actual Fund return
Essential Portfolio Conservative Fund		0.00%			$1,000.00		$   912.30		$   —
Essential Portfolio Moderate Fund		0.00%			1,000.00		855.50		—
Essential Portfolio Aggressive Fund		0.00%			1,000.00		792.60		—
Table 2. Based on hypothetical 5% return (before expenses)
Essential Portfolio Conservative Fund		0.00%			1,000.00		1,025.14		—
Essential Portfolio Moderate Fund		0.00%			1,000.00		1,025.14		—
Essential Portfolio Aggressive Fund		0.00%			1,000.00		1,025.14		—

*	Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by number of days in current fiscal year. Expenses shown do not include fees charged by insurance companies.
†	Annualized and excludes expenses of the underlying funds in which the Funds invest.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    5

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited)

ESSENTIAL PORTFOLIO CONSERVATIVE FUND

OBJECTIVE: The Essential Portfolio Conservative Fund’s objective is to seek preservation of capital and, secondarily, long-term growth of capital by investing principally in a diversified portfolio of underlying funds.

Inception: October 27, 2006

The one-year period ending December 31, 2008 was a difficult one with the stock market going through turbulence unseen in the past several decades. The three Rydex Essential Portfolio Funds took full advantage of their flexibility in allocation and performed significantly better than the simple buy-and-hold strategy used by their industry peers. Rydex Essential Portfolio Conservative Fund performed relatively well in a challenging environment, returning -10.83% during the year compared to its benchmark (40% S&P 500 Index and 60% Barclays Capital Aggregate Bond Index), which had a return of -12.38%. The Fund’s annualized monthly volatility was significantly less than the benchmark’s.

Investing in both alternative investments and alternative strategies helped to opportunistically adjust the fund’s beta to associated market risk and reduce overall portfolio risk. These alternative strategies and investments included exposure to real estate, commodities, managed futures, absolute return strategies and hedged equity investments.

Allocation to Rydex Government Long Bond 1.2x Strategy Fund contributed significantly to the fund’s overall positive returns, as did most of the alternative strategies mentioned above. Opportunistic allocation to Rydex Commodities Strategy Fund captured significant commodity gains with the run-up of oil prices in the first half of 2008 and subsequently avoided losses as oil prices fell in the later half of the year. Rydex Managed Futures Strategy Fund also benefited the portfolio this year.

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)
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund	17.1	%
Rydex Series Funds — Managed Futures Strategy Fund — Class H	16.2	%
Rydex Series Funds — High Yield Strategy Fund — Class H	14.4	%
Rydex Variable Trust — Sector Rotation Fund	11.2	%
Rydex Variable Trust — International Rotation Fund	9.7	%
Rydex Variable Trust — U.S. Government Money Market Fund	9.6	%
Rydex Variable Trust — Absolute Return Strategies Fund	8.2	%
Rydex Series Funds — S&P 500 Fund — Class H	7.8	%
Rydex Variable Trust — Hedged Equity Fund	2.6	%
Rydex Series Funds — Russell 2000® Fund — Class H	1.5	%
Top Ten Total	98.3	%

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

6    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

Cumulative Fund Performance:
October 27, 2006 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
				SINCE
	ONE			INCEPTION
	YEAR			(10/27/06)
ESSENTIAL PORTFOLIO CONSERVATIVE FUND		-10.83	%		-1.60	%
S&P 500 INDEX		-37.00	%		-15.81	%
SYNTHETIC ESSENTIAL PORTFOLIO CONSERVATIVE BENCHMARK*		-12.38	%		-2.13	%

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.

* Benchmark reflects a 40/60 ratio of the performance of the S&P 500 Index and the Barclays Capital Aggregate Bond Index.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    7

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

ESSENTIAL PORTFOLIO MODERATE FUND

OBJECTIVE: The Essential Portfolio Moderate Fund’s objective is to seek growth of capital and, secondarily, preservation of capital by investing principally in a diversified portfolio of underlying funds.

Inception: October 27, 2006

During the one-year period ending December 31, 2008, the stock market went through a high level of turbulence unseen in the past several decades. The three Rydex Essential Portfolio Funds took full advantage of their flexibility in allocation and performed significantly better than the simple buy-and-hold strategy used by their industry peers.

Rydex Essential Portfolio Moderate Fund returned - -17.58% during the year compared to its benchmark (60% S&P 500

Index and 40% Barclays Capital Aggregate Bond Index), which had a return of -20.95%. The Fund’s annualized monthly volatility was significantly less than the benchmark’s.

Allocation to Rydex Government Long Bond 1.2x Strategy Fund contributed significantly to the Fund’s overall positive returns, as did most of the alternative strategies, including real estate, commodities, managed futures, absolute return strategies and hedged equity investments.

Opportunistic allocation to Rydex Commodities Strategy Fund captured significant commodity gains with the run-up of oil prices in the first half of 2008 and subsequently avoided losses as oil prices fell in the later half of the year. Rydex Managed Futures Strategy Fund also benefited the portfolio this year.

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)
Rydex Series Funds — Managed Futures Strategy Fund — Class H	18.6	%
Rydex Variable Trust — Sector Rotation Fund	16.4	%
Rydex Variable Trust — International Rotation Fund	14.8	%
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund	11.6	%
Rydex Variable Trust — Absolute Return Strategies Fund	8.8	%
Rydex Series Funds — Russell 2000® Fund — Class H	7.1	%
Rydex Series Funds — High Yield Strategy Fund — Class H	6.1	%
Rydex Series Funds — S&P 500 Fund — Class H	5.7	%
Rydex Variable Trust — U.S. Government Money Market Fund	4.8	%
Rydex Variable Trust — Hedged Equity Fund	4.1	%
Top Ten Total	98.0	%

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

8    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

Cumulative Fund Performance:
October 27, 2006 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
				SINCE
	ONE			INCEPTION
	YEAR			(10/27/06)
ESSENTIAL PORTFOLIO MODERATE FUND		-17.58	%		-4.51	%
S&P 500 INDEX		-37.00	%		-15.81	%
SYNTHETIC ESSENTIAL PORTFOLIO MODERATE BENCHMARK*		-20.95	%		-6.56	%

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.

* Benchmark reflects a 60/40 ratio of the performance of the S&P 500 Index and the Barclays Capital Aggregate Bond Index.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    9

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

ESSENTIAL PORTFOLIO AGGRESSIVE FUND

OBJECTIVE: The Essential Portfolio Aggressive Fund’s objective is to seek growth of capital by investing principally in a diversified portfolio of underlying funds.

Inception: October 27, 2006

The year ending December 31, 2008 was a difficult one, with the stock market going through the turbulence unseen in the past several decades. The three Rydex Essential Portfolio Funds took full advantage of their flexibility in allocation and performed significantly better than the simple buy-and-hold strategy used by their industry peers.

Rydex Essential Portfolio Aggressive Fund returned - -25.04% during the year compared to its benchmark (80% S&P 500 Index and 20% Barclays Capital Aggregate Bond Index), which

returned -29.15%. The Fund’s annualized monthly volatility was significantly less than the benchmark’s.

An allocation to Rydex Government Long Bond 1.2x Strategy Fund contributed significantly to the Fund’s returns, as did alternative strategies, including real estate, commodities, managed futures, absolute return strategies and hedged equity investments. Opportunistic allocation to Rydex Commodities Strategy Fund captured significant commodity gains in the first half of 2008 and subsequently avoided losses in the later half of the year. Rydex Managed Futures Strategy Fund also contributed to the Fund’s significant returns for the year.

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)
Rydex Variable Trust — International Rotation Fund	19.4	%
Rydex Series Funds — Managed Futures Strategy Fund — Class H	18.8	%
Rydex Variable Trust — Sector Rotation Fund	17.2	%
Rydex Series Funds — Russell 2000® Fund — Class H	12.8	%
Rydex Variable Trust — Absolute Return Strategies Fund	7.4	%
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund	6.1	%
Rydex Variable Trust — Hedged Equity Fund	6.0	%
Rydex Series Funds — S&P 500 Fund — Class H	4.0	%
Rydex Variable Trust — Commodities Strategy Fund	3.4	%
Rydex Variable Trust — Real Estate Fund	2.8	%
Top Ten Total	97.9	%

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

10    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

PERFORMANCE REPORTS AND FUND PROFILES (Unaudited) (continued)

Cumulative Fund Performance:
October 27, 2006 – December 31, 2008

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED 12/31/08
				SINCE
	ONE			INCEPTION
	YEAR			(10/27/06)
ESSENTIAL PORTFOLIO AGGRESSIVE FUND		-25.04	%		-8.53	%
S&P 500 INDEX		-37.00	%		-15.81	%
SYNTHETIC ESSENTIAL PORTFOLIO AGGRESSIVE BENCHMARK*		-29.15	%		-11.16	%

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.

* Benchmark reflects a 80/20 ratio of the performance of the S&P 500 Index and the Barclays Capital Aggregate Bond Index.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    11

SCHEDULE OF INVESTMENTS

December 31, 2008

     ESSENTIAL PORTFOLIO CONSERVATIVE FUND

			MARKET
	SHARES		VALUE
MUTUAL FUNDS† 99.2%
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund		109,057	$	1,880,150
Rydex Series Funds — Managed Futures Strategy Fund — Class H		63,804		1,786,507
Rydex Series Funds — High Yield Strategy Fund — Class H		83,110		1,587,407
Rydex Variable Trust — Sector Rotation Fund		135,987		1,230,684
Rydex Variable Trust — International Rotation Fund*		62,210		1,070,018
Rydex Variable Trust — U.S. Government Money Market Fund		1,055,980		1,055,980
Rydex Variable Trust — Absolute Return Strategies Fund		43,185		905,589
Rydex Series Funds — S&P 500 Fund — Class H		48,105		855,301
Rydex Variable Trust — Hedged Equity Fund		14,822		284,431
Rydex Series Funds — Russell 2000® Fund — Class H		10,060		170,410
Rydex Variable Trust — Commodities Strategy Fund		9,208		105,620
Total Mutual Funds (Cost $11,093,219)				10,932,097

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT†† 0.6%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	65,428	$	65,428
Total Repurchase Agreement (Cost $65,428)				65,428
Total Investments 99.8% (Cost $11,158,647)			$	10,997,525
Other Assets in Excess of Liabilities – 0.2%			$	24,805
Net Assets – 100.0%			$	11,022,330

*	Non-Income Producing Security.
†	Affiliated Funds
††	Repurchase Agreement — See Note 5.

12    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS

December 31, 2008

     ESSENTIAL PORTFOLIO MODERATE FUND

			MARKET
	SHARES		VALUE
MUTUAL FUNDS† 99.5%
Rydex Series Funds — Managed Futures Strategy Fund — Class H		131,941	$	3,694,337
Rydex Variable Trust — Sector Rotation Fund		358,806		3,247,195
Rydex Variable Trust — International Rotation Fund*		171,147		2,943,729
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund		133,738		2,305,652
Rydex Variable Trust — Absolute Return Strategies Fund		83,397		1,748,841
Rydex Series Funds — Russell 2000® Fund — Class H*		83,476		1,414,090
Rydex Series Funds — High Yield Strategy Fund — Class H		63,062		1,204,486
Rydex Series Funds — S&P 500 Fund — Class H		63,718		1,132,900
Rydex Variable Trust — U.S. Government Money Market Fund		957,782		957,782
Rydex Variable Trust — Hedged Equity Fund		42,035		806,647
Rydex Variable Trust — Commodities Strategy Fund		25,249		289,603
Total Mutual Funds (Cost $20,791,842)				19,745,262
Total Investments 99.5% (Cost $20,791,842)			$	19,745,262
Other Assets in Excess of Liabilities – 0.5%			$	95,409
Net Assets – 100.0%			$	19,840,671

*	Non-Income Producing Security.
†	Affiliated Funds

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    13

SCHEDULE OF INVESTMENTS

December 31, 2008

     ESSENTIAL PORTFOLIO AGGRESSIVE FUND

			MARKET
	SHARES		VALUE
MUTUAL FUNDS† 99.5%
Rydex Variable Trust — International Rotation Fund*		74,677	$	1,284,449
Rydex Series Funds — Managed Futures Strategy Fund — Class H		44,467		1,245,072
Rydex Variable Trust — Sector Rotation Fund		126,019		1,140,469
Rydex Series Funds — Russell 2000® Fund — Class H*		50,259		851,392
Rydex Variable Trust — Absolute Return Strategies Fund		23,543		493,691
Rydex Variable Trust — Government Long Bond 1.2x Strategy Fund		23,623		407,258
Rydex Variable Trust — Hedged Equity Fund		20,636		396,004
Rydex Series Funds — S&P 500 Fund — Class H		14,892		264,788
Rydex Variable Trust — Commodities Strategy Fund		19,621		225,050
Rydex Variable Trust — Real Estate Fund		10,765		188,491
Rydex Series Funds — High Yield Strategy Fund — Class H		5,601		106,981
Total Mutual Funds (Cost $7,320,864)				6,603,645

	FACE		MARKET
	AMOUNT		VALUE
REPURCHASE AGREEMENT†† 0.5%
Credit Suisse Group issued 12/31/08 at 0.03% due 01/02/09	$	32,147	$	32,147
Total Repurchase Agreement (Cost $32,147)				32,147
Total Investments 100.0% (Cost $7,353,011)			$	6,635,792
Liabilities in Excess of Other Assets – 0.0%			$	(230	)
Net Assets – 100.0%			$	6,635,562

*	Non-Income Producing Security.
†	Affiliated Funds
††	Repurchase Agreement — See Note 5.

14    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2008

	Essential Portfolio			Essential Portfolio			Essential Portfolio
	Conservative			Moderate			Aggressive
	Fund			Fund			Fund
ASSETS
Investment Securities in Affiliated Funds	$	10,932,097		$	19,745,262		$	6,603,645
Repurchase Agreements		65,428			—			32,147
Total Investments		10,997,525			19,745,262			6,635,792
Receivable for Securities Sold		—			100,000			—
Receivable for Fund Shares Sold		35,477			10,200			—
Total Assets		11,033,002			19,855,462			6,635,792
LIABILITIES
Payable for Securities Purchased		44			42			1
Payable for Fund Shares Redeemed		10,628			1,109			199
Custody Fees Payable		—			8			30
Overdraft Due to Custodian Bank		—			13,632			—
Total Liabilities		10,672			14,791			230
NET ASSETS	$	11,022,330		$	19,840,671		$	6,635,562
NET ASSETS CONSIST OF
Paid-In Capital	$	12,897,520		$	24,392,346		$	9,048,363
Undistributed Net Investment Income		147			154			5
Accumulated Net Realized Loss on Investments		(1,714,215	)		(3,505,249	)		(1,695,587	)
Net Unrealized Depreciation on Investments		(161,122	)		(1,046,580	)		(717,219	)
NET ASSETS	$	11,022,330		$	19,840,671		$	6,635,562
SHARES OUTSTANDING		507,223			954,762			365,131
NET ASSET VALUES	$	21.73		$	20.78		$	18.17
Cost of Investments	$	11,158,647		$	20,791,842		$	7,353,011

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    15

STATEMENTS OF OPERATIONS

Year Ended December 31, 2008

	Essential Portfolio			Essential Portfolio			Essential Portfolio
	Conservative			Moderate			Aggressive
	Fund			Fund			Fund
INVESTMENT INCOME
Interest	$	2,363		$	4,066		$	1,222
Dividends from Affiliated Funds		415,260			384,723			74,923
Total Income		417,623			388,789			76,145
EXPENSES
Custody Fees		697			338			222
Total Expenses		697			338			222
Net Investment Income		416,926			388,451			75,923
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net Realized Gain (Loss) on:
Affiliated Investment Securities		(1,646,569	)		(3,256,386	)		(1,571,313	)
Realized Gain Distributions Received from Affiliated Funds		56,054			89,322			39,950
Total Net Realized Loss		(1,590,515	)		(3,167,064	)		(1,531,363	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investment Securities		(180,993	)		(1,037,759	)		(575,444	)
Net Change in Unrealized Appreciation (Depreciation)		(180,993	)		(1,037,759	)		(575,444	)
Net Loss on Investments		(1,771,508	)		(4,204,823	)		(2,106,807	)
Net Decrease in Net Assets from Operations	$	(1,354,582	)	$	(3,816,372	)	$	(2,030,884	)

16    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

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THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    17

STATEMENTS OF CHANGES IN NET ASSETS

	Essential Portfolio						Essential Portfolio
	Conservative Fund						Moderate Fund
	Year Ended			Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,			December 31,
	2008			2007			2008			2007
From Operations
Net Investment Income	$	416,926		$	73,262		$	388,451		$	116,832
Net Realized Gain (Loss) on Investments		(1,590,515	)		144,346			(3,167,064	)		65,302
Net Change in Unrealized Appreciation (Depreciation) on Investments		(180,993	)		22,954			(1,037,759	)		63,722
Net Increase (Decrease) in Net Assets from Operations		(1,354,582	)		240,562			(3,816,372	)		245,856
Distributions to Shareholders from:*
Net Investment Income		(426,954	)		(63,101	)		(392,818	)		(112,311	)
Realized Gain on Investments		(138,044	)		(131,590	)		(179,460	)		(237,165	)
Total Distributions to Shareholders		(564,998	)		(194,691	)		(572,278	)		(349,476	)
Share Transactions
Proceeds from Shares Purchased		25,842,864			14,786,536			24,283,258			24,695,699
Value of Shares Purchased through Dividend Reinvestment		564,998			194,691			572,278			349,476
Cost of Shares Redeemed		(18,904,806	)		(10,020,232	)		(14,911,643	)		(14,163,815	)
Net Increase in Net Assets From Share Transactions		7,503,056			4,960,995			9,943,893			10,881,360
Net Increase (Decrease) in Net Assets		5,583,476			5,006,866			5,555,243			10,777,740
Net Assets—Beginning of Period		5,438,854			431,988			14,285,428			3,507,688
Net Assets—End of Period	$	11,022,330		$	5,438,854		$	19,840,671		$	14,285,428
Undistributed Net Investment Income—End of Period	$	147		$	10,175		$	154		$	4,521

* 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 VARIABLE TRUST ANNUAL REPORT See Notes to Financial Statements.

Essential Portfolio
Aggressive Fund
Year Ended			Year Ended
December 31,			December 31,
2008			2007
$	75,923		$	45,883
	(1,531,363	)		194,966
	(575,444	)		(123,727	)
	(2,030,884	)		117,122
	(77,240	)		(44,561	)
	(175,409	)		(186,650	)
	(252,649	)		(231,211	)
	8,627,762			10,980,828
	252,649			231,211
	(6,835,397	)		(4,766,306	)
	2,045,014			6,445,733
	(238,519	)		6,331,644
	6,874,081			542,437
$	6,635,562		$	6,874,081
$	5		$	1,322

See Notes to Financial Statements. THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    19

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.

								Net Increase
					Net Realized			(Decrease) in												Net Increase			NET					RATIOS TO
	NET ASSET				and			Net Asset			Distributions			Distributions						(Decrease)			ASSET					AVERAGE NET ASSETS:									Net Assets,
	VALUE,		Net		Unrealized			Value			from Net			from Net						in Net			VALUE,		Total						Net			Portfolio			End of
	BEGINNING OF		Investment		Gains (Losses)			Resulting from			Investment			Realized			Total			Asset			END OF		Investment			Total			Investment			Turnover			Period (000’s
Year Ended	PERIOD		Income†		on Investments			Operations			Income§			Gains§			Distributions			Value			PERIOD		Return†††			Expenses††			Income			Rate			omitted)
Essential Portfolio Conservative Fund
December 31, 2008	$	25.68	$	.89	$	(3.67	)	$	(2.78	)	$	(.91	)	$	(.26	)	$	(1.17	)	$	(3.95	)	$	21.73		(10.83)	%		0.01	%		3.72	%		314	%	$	11,022
December 31, 2007		25.09		.61		1.00			1.61			(.33	)		(.69	)		(1.02	)		.59			25.68		6.45	%		0.03	%		2.33	%		395	%		5,439
December 31, 2006*		25.00		.45		(.02	)		.43			(.33	)		(.01	)		(.34	)		.09			25.09		1.71	%		—			9.77	%**		18	%		432
Essential Portfolio Moderate Fund
December 31, 2008		25.96		.47		(5.04	)		(4.57	)		(.44	)		(.17	)		(.61	)		(5.18	)		20.78		(17.58)	%		0.00	%		1.99	%		232	%		19,841
December 31, 2007		25.01		.36		1.27			1.63			(.22	)		(.46	)		(.68	)		.95			25.96		6.56	%		0.01	%		1.36	%		269	%		14,285
December 31, 2006*		25.00		1.35		(.61	)		.74			(.72	)		(.01	)		(.73	)		.01			25.01		2.98	%		—			28.35	%**		20	%		3,508
Essential Portfolio Aggressive Fund
December 31, 2008		25.21		.25		(6.57	)		(6.32	)		(.24	)		(.48	)		(.72	)		(7.04	)		18.17		(25.04)	%		0.00	%		1.11	%		308	%		6,636
December 31, 2007		24.48		.29		1.32			1.61			(.17	)		(.71	)		(.88	)		.73			25.21		6.64	%		0.01	%		1.12	%		300	%		6,874
December 31, 2006*		25.00		1.85		(1.10	)		.75			(1.24	)		(.03	)		(1.27	)		(.52	)		24.48		3.02	%		—			39.87	%**		34	%		542

*	Since the commencement of operations: October 27, 2006.
**	Income ratios for the year ended December 31, 2006 were calculated for an abbreviated time frame and are not indicative of future class performance, and are annualized.
†	Calculated using the average daily shares outstanding for the year.
††	Does not include expenses of the underlying funds in which the Funds invest.
†††	Total investment return does not reflect the impact of any additional fees charged by insurance companies and has not been annualized.
§	For financial reporting purposes, certain distributions from net investment income for federal income tax purposes have been reclassified to distributions from realized gains.

20    |    THE RYDEX 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 its Funds to insurance companies for their variable annuity and variable life insurance contracts.

At December 31, 2008, the Trust consisted of fifty-eight separate funds. This report covers the Essential Portfolio Funds (the “Funds”), while the other funds are contained in separate reports.

Each Fund is a “fund of funds,” which means that it seeks to achieve its investment objective by investing primarily in other Rydex mutual funds (the “underlying funds”) instead of individual securities.

Rydex Investments provides advisory, transfer agent and administrative services, and accounting services to the Trust. Rydex Distributors, Inc. (the “Distributor”) acts as principal underwriter for the Trust. Both Rydex Investments and the Distributor 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.

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. Exchange Traded Funds (“ETFs”) and closed-end investment companies are valued at the last quoted sales price. Short-term debt securities with a maturity of 60 days or less are valued at amortized cost, which approximates market value.

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.

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 also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements.

E. Throughout the normal course of business, the Funds and 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.

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.

A short sale is a transaction in which an underlying fund sells an equity or fixed income security it does not own. If the security sold short goes down in price between the time the underlying fund sells the security and closes its short position, that underlying fund will realize a gain on the transaction. Conversely, if the security goes up in price during the period, that underlying 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 an underlying 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 an underlying 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 an underlying 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 an underlying fund may

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    21

NOTES TO FINANCIAL STATEMENTS (continued)

not be able to enter into a closing transaction because of an illiquid secondary market.

There are several risks associated with the use of structured notes. Structured securities are leveraged, thereby providing an exposure to the underlying benchmark greater than the face amount and increasing the volatility of each note relative to the change in the underlying linked financial instrument. A highly liquid secondary market may not exist for the structured notes an underlying fund invests in which may make it difficult for that underlying fund to sell the structured notes it holds at an acceptable price or to accurately value them. In addition, structured notes are subject to the risk that the counterparty to the instrument, or issuer, might not pay interest when due or repay principal at maturity of the obligation. Although the Trust will not invest in any structured notes unless Rydex Investments believes that the issuer is creditworthy, an underlying fund does bear the risk of loss of the amount expected to be received in the event of the default or bankruptcy of the issuer.

There are several risks associated with the use of swap agreements that are different from those associated with ordinary portfolio securities transactions. Swap agreements may be considered to be illiquid. Although the Trust will not enter into any swap agreement unless Rydex Investments believes that the other party to the transaction is creditworthy, the underlying 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.

There are several risks associated with credit default swaps. Credit default swaps involve the exchange of a fixed-rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor,” receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return, the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. An underlying fund may enter into credit default swaps in which that underlying fund or its counterparty act as guarantors. By acting as the guarantor of a swap, that underlying fund assumes the market and credit risk of the underlying instrument, including liquidity and loss of value.

In conjunction with the use of short sales, options, futures, options on futures, and swap agreements, the underlying funds are required to maintain collateral in various forms. The underlying 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 underlying fund.

The risks inherent in the use of short sales, options, futures contracts, options on 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.    Fees And Other Transactions With Affiliates

Rydex Investments 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 Rydex Investments a management fee. As part of its agreement with the Trust, Rydex Investments 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 underlying fund expenses) of the underlying funds in which the Fund invests.

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

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

22    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

income tax returns for all open tax years (fiscal years 2005-2008), 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 includes net operating losses not utilized during the current period and capital loss carryforward expired. 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.

The tax character of distributions paid during 2008, was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Essential Portfolio Conservative Fund	$	519,969	$	45,029	$	564,998
Essential Portfolio Moderate Fund		410,148		162,130	$	572,278
Essential Portfolio Aggressive Fund		148,409		104,240	$	252,649

The tax character of distributions paid during 2007, was as follows:

	Ordinary		Long-Term		Total
Fund	Income		Capital Gain		Distributions
Essential Portfolio Conservative Fund	$	192,682	$	2,009	$	194,691
Essential Portfolio Moderate Fund		332,321		17,155		349,476
Essential Portfolio Aggressive Fund		226,771		4,440		231,211

The tax character of distributable earnings/(accumulated losses) at December 31, 2008, was a follows:

	Undistributed		Undistributed
	Ordinary		Long-Term		Net Unrealized			Capital Loss
Fund	Income		Capital Gain		Depreciation			Carryforward1
Essential Portfolio Conservative Fund	$	147	$	—	$	(1,068,734	)	$	(612,719	)
Essential Portfolio Moderate Fund		154		—		(2,342,570	)		(1,816,884	)
Essential Portfolio Aggressive Fund		5		—		(1,401,947	)		(764,618	)

Capital Loss Carryforward amounts may be limited due to Treasury Regulations.

¹ A summary of the expiration of the aforementioned Capital Loss Carryforward is as follows:

				Total
	Expires in			Capital Loss
Fund	2016			Carryforward
Essential Portfolio Conservative Fund	$	(612,719	)	$	(612,719	)
Essential Portfolio Moderate Fund		(1,816,884	)		(1,816,884	)
Essential Portfolio Aggressive Fund		(764,618	)		(764,618	)

At December 31, 2008, 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			Loss
Essential Portfolio Conservative Fund	$	12,066,259	$	315,163	$	(1,383,897	)	$	(1,068,734	)
Essential Portfolio Moderate Fund		22,087,832		532,478		(2,875,048	)		(2,342,570	)
Essential Portfolio Aggressive Fund		8,037,739		84,611		(1,486,558	)		(1,401,947	)

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    23

NOTES TO FINANCIAL STATEMENTS (continued)

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, 2008, 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, 2009:

Fund	Capital
Essential Portfolio Conservative Fund	$	(193,884	)
Essential Portfolio Moderate Fund		(392,375	)
Essential Portfolio Aggressive Fund		(246,241	)

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 at December 31, 2008, were as follows:

Counterparty	Terms of Agreement	Face Value		Market Value		Repurchase Price
Credit Suisse Group	0.03% due 01/02/09	$	49,841,465	$	49,841,465	$	49,841,548
				$	49,841,465	$	49,841,548

At December 31, 2008, 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		05/15/18		3.875	%	$	43,815,000	$	50,842,661
								$	50,842,661

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 its 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.

6. Fair Value Measurement

Effective January 1, 2008, the Funds adopted Statement of Financial Accounting Standard No. 157 (“FAS 157”), Fair Value Measurement, which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications.

Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels:

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.

24    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued)

The following table summarizes the inputs used to value the Funds’ net assets at December 31, 2008:

	Level 1		Level 1		Level 2		Level 2		Level 3		Level 3
	Investments		Other Financial		Investments		Other Financial		Investments		Other Financial
Fund	In Securities		Instruments		In Securities		Instruments		In Securities		Instruments		Total
Assets
Essential Portfolio Conservative Fund	$	10,997,525	$	—	$	—	$	—	$	—	$	—	$	10,997,525
Essential Portfolio Moderate Fund		19,745,262		—		—		—		—		—		19,745,262
Essential Portfolio Aggressive Fund		6,635,792		—		—		—		—		—		6,635,792

7. Securities Transactions

During the year ended December 31, 2008, the cost of purchases and proceeds from sales of investment securities, excluding short-term and temporary cash investments, were:

	Essential Portfolio		Essential Portfolio		Essential Portfolio
	Conservative Fund		Moderate Fund		Aggressive Fund
Purchases		$42,064,931		$54,644,366		$22,876,553
Sales		$34,643,170		$44,366,278		$20,884,593

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    25

NOTES TO FINANCIAL STATEMENTS (continued)

8.    Share Transactions

The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the years presented were:

					Purchased through
	Shares Purchased				Dividend Reinvestment				Shares Redeemed						Net Shares Purchased
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended			Year Ended			Year Ended		Year Ended
	December 31,		December 31,		December 31,		December 31,		December 31,			December 31,			December 31,		December 31,
	2008		2007		2008		2007		2008			2007			2008		2007
Essential Portfolio Conservative Fund		1,053,806		573,619		25,905		7,635		(784,255	)		(386,703	)		295,456		194,551
Essential Portfolio Moderate Fund		1,013,788		945,750		27,580		13,604		(636,851	)		(549,340	)		404,517		410,014
Essential Portfolio Aggressive Fund		388,181		428,152		14,020		9,289		(309,772	)		(186,898	)		92,429		250,543

26    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (concluded)

9.    Change in Independent Registered Public Accounting Firm

The Board of Trustees has selected Ernst & Young LLP (E&Y) to serve as the Funds’ independent registered public accounting firm for the fiscal year ended December 31, 2008. The decision to select E&Y was recommended by the Audit Committee and was approved by the Board on August 27, 2008. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, none of the Funds, their portfolios nor anyone on their behalf consulted with E&Y on items which (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Funds’ financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(iv) of said Item 304).

The selection of E&Y does not reflect any disagreements with or dissatisfaction by the Funds or the Board with the performance of the Funds’ prior auditor, PricewaterhouseCoopers LLP (PwC). The decision to dismiss PwC and to select E&Y was recommended by the Funds’ Audit Committee and approved by the Funds’ Board of Trustees. PwC’s report on the Funds’ financial statements for the fiscal years ended December 31, 2007 and 2006 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles. During the Funds’ fiscal years ended December 31, 2007 and December 31, 2006, (i) there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused it to make reference to the subject matter of the disagreements in connection with its report on the Funds’ financial statements for such years, and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation SK under the Securities and Exchange Act of 1934, as amended.

10.    New Accounting Pronouncements

In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how entities use derivatives, how they are accounted for and how they affect the financial position and operations of that entity. FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. Management is evaluating the impact of FAS 161 on its current disclosures.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    27

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 of Essential Portfolio Conservative Fund, Essential Portfolio Moderate Fund, and Essential Portfolio Aggressive Fund (three of the series constituting the Rydex Variable Trust) (the “Funds”), including the schedules of investments, as of December 31, 2008, and the related statements of operations, statements of changes in net assets, and financial highlights for the year 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 statements of changes in net assets for the year ended December 31, 2007 and 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 statements and 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, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the transfer agent of the underlying funds and brokers. 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 each of the above listed Funds at December 31, 2008, and the results of their operations, the changes in their net assets and their financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.

McLean, Virginia
February 26, 2009

28    |    THE RYDEX 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
Essential Portfolio Conservative Fund		4.42%
Essential Portfolio Moderate Fund		2.04%
Essential Portfolio Aggressive Fund		6.02%

The Funds’ distributions to shareholders included:

	Essential		Essential		Essential
	Portfolio		Portfolio		Portfolio
	Conservative		Moderate		Aggressive
	Fund		Fund		Fund
From long-term capital gains, subject to the 15% rate gains category:		45,029		162,130		104,240

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 1-800-820-0888. 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 1-800-820-0888. 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 1-800-820-0888.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    29

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, 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 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

TRUSTEES AND OFFICERS

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Carl G. Verboncoeur*	Rydex Series Funds – 2004		160
Trustee, President (1952)	Rydex Variable Trust – 2004
	Rydex Dynamic Funds – 2004
	Rydex ETF Trust – 2004

Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to present) Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present)

Michael P. Byrum*	Rydex Series Funds – 2005	160
Trustee, Vice President	Rydex Variable Trust – 2005
(1970)	Rydex Dynamic Funds – 2005
	Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); 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); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)

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		151
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	151
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	151
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

30    |    THE RYDEX VARIABLE TRUST ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

	Length of Service
Name, Position and	As Trustee	Number of
Year of Birth	(Year Began)	Funds Overseen
Werner E. Keller	Rydex Series Funds – 2005	151
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	151
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	151
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	151
Trustee (1944)	Rydex Variable Trust – 1998
	Rydex Dynamic Funds – 1999
	Rydex ETF Trust – 2003
Principal Occupations During Past Five Years: Owner, Arrow Limousine

EXECUTIVE OFFICERS

Name, Position and	Principal Occupations
Year of Birth	During Past Five Years
Nick Bonos* Vice President and Treasurer (1963)	Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present); 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 (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joanna M. Haigney* Chief Compliance Officer and Secretary (1966)	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, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006)
Joseph Arruda* Assistant Treasurer (1966)	Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004)
Paula Billos* Controller (1974)	Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, 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.

THE RYDEX VARIABLE TRUST ANNUAL REPORT    |    31

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                        9601 Blackwell Road, Suite 500
                        Rockville, MD 20850
                        www.rydexinvestments.com
                        800.820.0888
                        RVAEP-2-1208x1209

Item 2. Code of Ethics.

The Board of Trustees of the Trust has adopted a Combined Code of Ethics (the “Code”) pursuant to Rule 17j-1 under the 1940 Act. The Advisor and Distributor are also covered by the Code. The Code applies to the personal investing activities of trustees, directors, officers, and certain employees (“access persons”). Rule 17j-1 and the Code are designed to prevent unlawful practices in connection with the purchase or sale of securities by access persons. Under the Code, access persons are permitted to engage in personal securities transactions, but are required to report their personal securities transactions for monitoring purposes. In addition, certain access persons are required to obtain approval before investing in initial public offerings or private placements. No substantive amendments were approved or waivers were granted to the Code during the period covered by this report. The Code is filed as an exhibit to this Form N-CSR.

Item 3. Audit Committee Financial Expert.

The registrant’s Board of Trustees has determined that Werner Keller, an “independent” Trustee serving on the registrant’s audit committee, is an “audit committee financial expert,” as defined in Item 3 of Form N-CSR. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

(a)-(d)     The aggregate Audit Fees billed by the Trust’s principal accountant, for the audit of the annual financial statements in connection with statutory and regulatory filings for the fiscal years ended December 31, 2008 and December 31, 2007 were $965,000 and $941,675, 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, 2008 and December 31, 2007 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 $75,000 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 April 24, 2009, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex Variable Trust (the “Trust”) believe that there were no significant deficiencies in the design or operation of the internal controls of the Trust or Rydex Investments (“RI”), the investment advisor and manager of the Trust, or Rydex Distributors, Inc. (“RD”), which acts as distributor for the Trust, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) which would have adversely affected the ability of the Trust or RI on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report.

There was no fraud, whether or not material, involving officers or employees of RI, RD or the Trust who have a significant role in the Trust’s internal controls, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come to the attention of the Advisor or the officers of the Trust, including its President and Treasurer.

(b)     There were no significant changes in the Trust’s or RI’s internal controls over financial reporting, (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)     The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached.

(a)(2)     Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.

(b)     A certification by the registrant’s President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached.

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

CERTIFICATION

I, Carl G. Verboncoeur, certify that:

1. I have reviewed this report on Form N-CSR/A 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: April 24, 2009
	/s/ Carl G. Verboncoeur
	Carl G. Verboncoeur,
	President

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

CERTIFICATION

I, Nick Bonos, certify that:

1. I have reviewed this report on Form N-CSR/A 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: April 24, 2009
	/s/ Nick Bonos
	Nick Bonos,
	Vice President and Treasurer

EX. 12(b)(i)

CERTIFICATION

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

1.	The Form N-CSR/A 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: April 24, 2009

/s/ Carl G. Verboncoeur  

Carl G. Verboncoeur, 

President 

EX. 12(b)(ii)

CERTIFICATION

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

1.	The Form N-CSR/A 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: April 24, 2009

/s/ Nick Bonos  

Nick Bonos, 

Vice President and Treasurer 

SIGNATURES

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

(Registrant) Rydex Variable Trust

By (Signature and Title)*	/s/ Carl G. Verboncoeur
	Carl G. Verboncoeur, President

Date April 24, 2009

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

By (Signature and Title)*	/s/ Carl G. Verboncoeur
	Carl G. Verboncoeur, President

Date April 24, 2009

By (Signature and Title)*	/s/ Nick Bonos
	Nick Bonos, Vice President and Treasurer

Date April 24, 2009

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

EX-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 the 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. The Code should be read in conjunction with the Trusts’ other policy statements, including the Trusts’ joint Code of Ethics adopted pursuant to Rule 17j-1 under the Investment Company Act of 1940.

II.     Purposes of the Code

         The purposes of the 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 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;

• To encourage the prompt internal reporting to an appropriate person of violations of the Code; and

• To establish accountability for adherence to the Code.

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III.      Questions about the 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 with respect to the implementation and administration of the Code. You should direct your questions about the 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. However, the Trusts’ expect that all employees who participate in the preparation of any part of the Trusts’ financial statements follow the guidelines set forth below.

1.	Ethical and honest conduct is of paramount importance. Each Trust’s SFOs must act with honesty and integrity and avoid violations of the 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 the 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.
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 their independent judgment to be subordinated to personal gain or advantage. Each Trust’s SFOs must conduct the affairs of the Trust in a responsible manner, consistent with the Code.

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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 their 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 the Code.

V.         Waivers of the Code

             You may request a waiver of a provision of the 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 the 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 the 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 Trust’s Compliance Officer will provide guidance on the conduct required by the Code and the 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 the Code, the SFO must immediately report the violation or suspected violation to the Compliance Officer, another member of the Trusts’ senior management, or to the Audit Committees of the Trusts’ Boards. 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

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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.

          Because service providers such as the administrator, outside accounting firm, and custodian provide much of the work relating to the Trusts’ financial statements, each Trust’s SFOs should be alert for actions by service providers that may be illegal, or that could be viewed as dishonest or unethical conduct. They should report these actions to the Compliance Officer even if they know, or think, that the service provider has its own code of ethics for its senior financial officers or employees.

          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 the Code, regardless of whether the Code specifically refers to such particular conduct. A violation of the 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 Securities Exchange Act of 1934, 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

/s/ Carl G. Verboncoeur	January 22, 2008
Carl G. Verboncouer President	Date
/s/ Nick Bonos	January 29, 2008
Nick Bonos Treasurer	Date
/s/ Mike Byrum	January 24, 2008
Mike Byrum Chief Investment Officer	Date

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APPENDIX A

Senior Financial Officers

As of January 1, 2008 each Trust’s senior financial officers are:

Carl Verboncoeur
Nick Bonos
Mike Byrum

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