N-CSRS 1 b76190a1nvcsrs.txt RYDEX ETF TRUST 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- 21261 Rydex ETF 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 ETF 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: October 31, 2009 Date of reporting period: April 30, 2009 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. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. APRIL 30, 2009 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 ETF (RYDEX | SGI(SM) LOGO) SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS............................................... 2 FEES AND EXPENSES........................................................ 4 PREMIUM AND DISCOUNT INFORMATION......................................... 5 PORTFOLIO SUMMARY........................................................ 6 SCHEDULES OF INVESTMENTS................................................. 8 STATEMENTS OF ASSETS AND LIABILITIES..................................... 17 STATEMENTS OF OPERATIONS................................................. 18 STATEMENTS OF CHANGES IN NET ASSETS...................................... 19 FINANCIAL HIGHLIGHTS..................................................... 20 NOTES TO FINANCIAL STATEMENTS............................................ 22 SUPPLEMENTAL INFORMATION................................................. 26 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS............................ 27
2 LETTER TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- DEAR SHAREHOLDER, Last year was a difficult one for many as unemployment increased, housing values decreased and the impact of an economic slowdown reverberated in stock markets around the world. As we enter a new market environment in which investors, regulators and legislators have a dramatically reduced tolerance for risk and a greater demand for transparency, investment professionals are increasingly turning to exchange traded funds (ETFs). Due to their convenience, transparency and ability to provide access to difficult-to-reach areas of the market, ETFs can play an important role in investor portfolios. Needless to say, Rydex is a proud participant in the ETF space with $4 billion in ETF assets and more than 40 exchange traded products. Growing Industry Influence. More investment advisors are gravitating to ETFs for their flexibility, transparency and lower expense ratios. In fact, nearly all of the advisors (83%) who took part in the Rydex AdvisorBenchmarking(TM) November 2008 Survey believe that ETFs will be their primary investment vehicle in 2009. While ETF assets have fallen 12.9% over the past 12 months to $495B from $569B, the number of ETF products in the market actually climbed 16% -- with greatest growth in global and international ETFs. According to the Investment Company Institute, there are now more than 719 ETFs in this category versus 614 a year ago -- a notable 41% increase. Some industry experts even see ETFs' popularity encroaching on sacred mutual fund territory. In April, Lipper reported that "Sales of new ETFs appear to be replacing sales of new mutual funds over the past several years. ETF launches now exceed 30% of all new (fund) products." Unprecedented Market Conditions. The financial crisis that unfolded earlier this year affected nearly every conceivable asset class, resulting in huge declines in wealth -- regardless of how investors had structured their portfolios. Other than treasury bills and the U.S. dollar, no investment class was spared the widespread panic that washed over the world's financial markets. In the U.S. alone, the major stock market averages lost more than 20% of their value as the entire financial system seized up and choked as the engine of any economy -- bank lending -- stalled out. The resulting crash in global stock markets was as steep as anything we witnessed since the historic stock market crash of 1929. Huge financial dominoes began to fall as Merrill Lynch, Morgan Stanley, Goldman Sachs and Lehman Brothers collapsed, merged with or were reborn as commercial banks. Among other things, the crisis showed us that the Wall Street formula of highly leveraged balance sheets, coupled with the need to access working capital on a daily basis, proved to be lethal when backed by seemingly worthless assets. And as the willingness to lend disappeared, so did Wall Street's daily lifeline. Historic Government Intervention. September 2008 proved to be a historic month for unprecedented government intervention in the equity markets. On September 18, the U.S. Treasury announced the establishment of a temporary guarantee program for money market mutual funds after the Reserve Primary Fund "broke the buck" -- causing a massive exodus from money market mutual funds. The next day, on September 19, the Securities and Exchange Commission (SEC) issued a temporary ban prohibiting the short sales of certain financial securities. We complied with the SEC action by suspending trading of the Rydex Inverse 2x S&P Select Sector Financial ETF until the ban was lifted on October 8, 2008. The month of September also saw the takeover of Fannie Mae, Freddie Mac and AIG, the seizure of IndyMac Bank and Washington Mutual, which pointed to a near takeover of the global financial system by the government. In this history-making period, government at all levels moved with unprecedented speed, scope and coordination to save the financial system and with it the global economy. This culminated with a $700 billion plan put forward by the U.S. Treasury to essentially buy up all the bad mortgage assets clogging the financial system. Newly sworn-in government officials committed $12 trillion to programs designed to offset credit and sub-prime mortgage-related issues that were negatively impacting the financial services industry. This historic government intervention kicked into high gear during the fall when Congress established The Emergency Economic Stabilization Act of 2008 (EESA) in an effort to help strengthen the U.S. economy. Primarily, the act authorized the Troubled Assets Relief Program (TARP), which was originally structured to purchase troubled assets from ailing banks but quickly morphed into an effort to recapitalize the banking industry. Signs of a Recovery. The question at the forefront of everyone's mind still remains: Will it all work? While it looks like the Dow Jones Industrial Average finally found its bottom of 6547.05 on March 9, investors still remain cautious. The new administration has rightly made the economy its top priority and we are starting to see some proverbial light at the end of the tunnel. All major U.S. indices ended April in positive territory with the NASDAQ Composite posting a 12.35% gain, the S&P 500 jumping to 9.39% and the Dow Industrials closing out the month with a respectable 7.35% gain. In fact, April proved to be a solid month of recovery as the NASDAQ reported its best April percentage gain since 2001 (when it gained 14.99%), the S&P posted its best gain since 1938 (when it gained 15.06%) and the Dow had its best monthly gain since last March, when it rose 7.77%. On the housing front, home-sales figures in recent weeks have shown a slower pace of decline and the slide in property prices appears to have stabilized. Former Federal Reserve Chairman Alan Greenspan even went on record in early May stating that the U.S. housing SEMI-ANNUAL REPORT 3 -------------------------------------------------------------------------------- market may be on the verge of a recovery and that it's "very easy to see" the financial markets continuing to improve. While there's still a long way to go to repair the carnage we experienced over the past six months, I'm optimistic that we can -- and will -- endure. We appreciate the trust that you have placed in our firm's quality and integrity by investing with us. It is our goal to continue to offer you a wide variety of ETFs to help you meet your financial goals. Sincerely, -s- David C. Reilly, CFA Mike Byrum, CFA President and Chief Investment Officer Read the fund's prospectus carefully before investing. It contains the fund's investment objectives, risks, charges, expenses and other information. Obtain a prospectus at rydexinvestments.com or call 800.258.4332. The opinions and forecasts expressed are those of Security Global Investors as of June 1, 2009, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or strategy. AdvisorBenchmarking.com and the Rydex PracticeValue program are services of Advisor Research Center, Inc., an affiliate of Rydex Investments. Advisor Research Center, Inc., and its affiliates make no warranties, expressed or implied, as to results to be obtained from the use of information provided by the Rydex PracticeValue program and/or AdvisorBenchmarking.com, and Advisor Research Center, Inc., expressly disclaims all warranties of merchantability or fitness for a particular purpose of use with respect thereto. While Advisor Research Center, Inc., believes the information to be reliable, Advisor Research Center, Inc., and its affiliates shall not be liable for any claims or losses of any nature in connection with the information contained in this publication. 4 FEES AND EXPENSES (Unaudited) -------------------------------------------------------------------------------- SHAREHOLDER EXPENSE EXAMPLE As a shareholder of the Rydex ETF Trust, you incur transaction costs such as creation and redemption fees or brokerage charges, and ongoing costs including advisory fees and, if applicable, distribution fees. All other Trust expenses are paid by the advisor. This Example is intended to help you understand your 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 example in the table is based on an investment of $1,000 invested on October 31, 2008 and held for the six months ended April 30, 2009. ACTUAL EXPENSES The first table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first table under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses attributable to your investment during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation and redemption fees, or brokerage charges. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID ACCOUNT ACCOUNT DURING EXPENSE VALUE VALUE SIX-MONTH PERIOD* RATIO 10/31/08 4/30/09 10/31/08 TO 4/30/09 ------- --------- --------- ------------------- ACTUAL Rydex S&P Equal Weight ETF........................ 0.40% $1,000.00 $ 990.30 $1.97 Rydex Russell Top 50 ETF.......................... 0.20% 1,000.00 889.90 0.94 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P Equal Weight ETF........................ 0.40% 1,000.00 1,022.81 2.01 Rydex Russell Top 50 ETF.......................... 0.20% 1,000.00 1,023.80 1.00
-------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period). SEMI-ANNUAL REPORT 5 PREMIUM AND DISCOUNT INFORMATION (Unaudited) -------------------------------------------------------------------------------- The tables that follow present information about the differences between the daily market price on secondary markets for shares of the Funds and each Fund's NAV. Net Asset Value, or "NAV," is the price per share at which a Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The "Market Price" of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the Exchange on which the Fund is listed for trading, as of the time the Fund's NAV is calculated. A Fund's Market Price may be at, above or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply of and demand for shares of the Funds. Premiums or discounts are the differences (generally expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a positive percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a negative percentage of the NAV. The following information shows the frequency distribution of premiums and discounts for the Funds. The information shown for each Fund is for the six months ended April 30, 2009. Each line in the table shows the number of trading days in which the Funds traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by the table. All data presented here represents past performance, which cannot be used to predict future results.
NUMBER OF DAYS ----------------------- RYDEX RYDEX S&P EQUAL RUSSELL WEIGHT TOP 50 PREMIUM/DISCOUNT RANGE ETF ETF ---------------------- --------- ------- Greater than 3%................................................ 0 0 Between 1.01% and 3%........................................... 2 3 Between .51% and 1%............................................ 6 7 Between .26% and .5%........................................... 22 21 Between .25% and 0%............................................ 613 519 Between -0.01% and -0.25%...................................... 581 424 Between -0.26% and -0.5%....................................... 25 23 Between -0.51% and -1%......................................... 7 7 Between -1.01% and -3%......................................... 2 1 Less than 3%................................................... 0 0 ---- ---- Total.......................................................... 1258 1005 ---- ----
PERCENTAGE OF TOTAL DAYS ------------------------ RYDEX RYDEX S&P EQUAL RUSSELL WEIGHT TOP 50 PREMIUM/DISCOUNT RANGE ETF ETF ---------------------- --------- ------- Greater than 3%................................................ 0.00% 0.00% Between 1.01% and 3%........................................... 0.16% 0.30% Between .51% and 1%............................................ 0.48% 0.70% Between .26% and .5%........................................... 1.75% 2.09% Between .25% and 0%............................................ 48.73% 51.64% Between -0.01% and -0.25%...................................... 46.18% 42.19% Between -0.26% and -0.5%....................................... 1.99% 2.29% Between -0.51% and -1%......................................... 0.56% 0.70% Between -1.01% and -3%......................................... 0.16% 0.10% Less than 3%................................................... 0.00% 0.00% ------ ------ Total.......................................................... 100.00% 100.00% ------ ------
6 RYDEX S&P EQUAL WEIGHT ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CB RICHARD ELLIS GROUP, INC. -- CLASS A 0.47% WYNDHAM WORLDWIDE CORP. 0.46% FORD MOTOR CO. 0.39% TENET HEALTHCARE CORP. 0.36% PRINCIPAL FINANCIAL GROUP, INC. 0.35% DOW CHEMICAL CO. 0.33% XL CAPITAL, LTD. -- CLASS A 0.32% AMERICAN EXPRESS CO. 0.32% FIFTH THIRD BANCORP 0.32% JABIL CIRCUIT, INC. 0.32% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 18.27 Financials 17.19 Information Technology 14.70 Industrials 11.94 Health Care 9.91 Consumer Staples 7.49 Energy 6.90 Materials 6.12 Utilities 5.91 Telecommunication Services 1.57
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 7 RYDEX RUSSELL TOP 50 ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 8.69% MICROSOFT CORP. 4.26% AT&T, INC. 3.98% PROCTER & GAMBLE CO. 3.90% JOHNSON & JOHNSON, INC. 3.86% INTERNATIONAL BUSINESS MACHINES CORP. 3.71% CHEVRON CORP. 3.58% GENERAL ELECTRIC CO. 3.48% JPMORGAN CHASE & CO. 3.20% CISCO SYSTEMS, INC. 2.99% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 25.60 Energy 16.71 Consumer Staples 14.65 Health Care 12.60 Financials 9.95 Industrials 7.54 Telecommunication Services 6.27 Consumer Discretionary 4.50 Materials 1.39 Utilities 0.79
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 8 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS 99.7% AEROSPACE & DEFENSE 2.4% Boeing Co. .................. 44,415 $1,778,821 General Dynamics Corp. ...... 38,871 2,008,465 Goodrich Corp. .............. 38,662 1,711,953 Honeywell International, Inc. ..................... 52,719 1,645,360 ITT Corp. ................... 37,918 1,555,017 L-3 Communications Holdings, Inc. ..................... 23,109 1,759,750 Lockheed Martin Corp. ....... 21,574 1,694,206 Northrop Grumman Corp. ...... 37,954 1,835,076 Precision Castparts Corp. ... 25,033 1,873,971 Raytheon Co. ................ 40,716 1,841,585 Rockwell Collins, Inc. ...... 46,069 1,766,746 United Technologies Corp. ... 35,843 1,750,572 ------------ TOTAL AEROSPACE & DEFENSE 21,221,522 ------------ AIR FREIGHT & LOGISTICS 0.8% C.H. Robinson Worldwide, Inc. ..................... 32,547 1,730,198 Expeditors International of Washington, Inc. ......... 51,843 1,799,471 FedEx Corp. ................. 32,952 1,843,994 United Parcel Service, Inc. -- Class B........... 32,083 1,679,224 ------------ TOTAL AIR FREIGHT & LOGISTICS 7,052,887 ------------ AIRLINES 0.2% Southwest Airlines Co. ...... 255,693 1,784,737 ------------ TOTAL AIRLINES 1,784,737 ------------ AUTO COMPONENTS 0.6% Goodyear Tire & Rubber Co.(The)*................. 240,047 2,638,116 Johnson Controls, Inc. ...... 129,766 2,466,852 ------------ TOTAL AUTO COMPONENTS 5,104,968 ------------ AUTOMOBILES 0.8% Ford Motor Co.*.............. 578,755 3,460,955 General Motors Corp. ........ 505,293 970,163 Harley-Davidson, Inc. ....... 111,059 2,461,067 ------------ TOTAL AUTOMOBILES 6,892,185 ------------ BEVERAGES 1.6% Brown-Forman Corp. -- Class B......................... 37,654 1,750,911 Coca-Cola Co.(The)........... 34,829 1,499,388 Coca-Cola Enterprises, Inc. ..................... 125,217 2,136,202 Constellation Brands, Inc. -- Class A*.......... 112,663 1,305,764 Dr Pepper Snapple Group, Inc.*..................... 99,869 2,068,287 Molson Coors Brewing Co. -- Class B............ 44,567 1,704,688 Pepsi Bottling Group, Inc. .. 74,055 2,315,700 PepsiCo, Inc. ............... 29,918 1,488,720 ------------ TOTAL BEVERAGES 14,269,660 ------------ BIOTECHNOLOGY 1.0% Amgen, Inc.*................. 30,138 1,460,789 Biogen Idec, Inc.*........... 29,061 1,404,809 Celgene Corp.*............... 32,182 1,374,815 Cephalon, Inc.*.............. 21,993 1,442,961 Genzyme Corp.*............... 26,808 1,429,670 Gilead Sciences, Inc.*....... 33,161 1,518,774 ------------ TOTAL BIOTECHNOLOGY 8,631,818 ------------ BUILDING PRODUCTS 0.2% Masco Corp. ................. 225,199 1,995,263 ------------ TOTAL BUILDING PRODUCTS 1,995,263 ------------ CAPITAL MARKETS 3.0% Ameriprise Financial, Inc. .. 76,136 2,006,184 Bank of New York Mellon Corp. .................... 58,900 1,500,772 Charles Schwab Corp.(The).... 107,821 1,992,532 E*TRADE Financial Corp.*..... 1,255,514 1,795,385 Federated Investors, Inc. -- Class B........... 71,610 1,638,437 Franklin Resources, Inc. .... 31,154 1,884,194 Goldman Sachs Group, Inc.(The)................. 14,815 1,903,727 Invesco Ltd. ................ 122,415 1,801,949 Janus Capital Group, Inc. ... 259,370 2,601,481 Legg Mason, Inc. ............ 105,431 2,116,000 Morgan Stanley............... 70,221 1,660,024 Northern Trust Corp. ........ 25,931 1,409,609 State Street Corp. .......... 55,085 1,880,051 T. Rowe Price Group, Inc. ... 58,113 2,238,513 ------------ TOTAL CAPITAL MARKETS 26,428,858 ------------ CHEMICALS 2.3% Air Products & Chemicals, Inc. ..................... 25,981 1,712,148 CF Industries Holdings, Inc. ..................... 21,245 1,530,702 Dow Chemical Co.(The)........ 182,231 2,915,696 Du Pont (E.I.) de Nemours & Co. ...................... 68,711 1,917,037 Eastman Chemical Co. ........ 59,420 2,357,786 Ecolab, Inc. ................ 44,884 1,730,278 International Flavors & Fragrances, Inc. ......... 50,489 1,575,257 Monsanto Co. ................ 17,954 1,524,115 PPG Industries, Inc. ........ 41,932 1,847,105 Praxair, Inc. ............... 22,832 1,703,495 Sigma-Aldrich Corp. ......... 40,586 1,779,290 ------------ TOTAL CHEMICALS 20,592,909 ------------ COMMERCIAL BANKS 2.9% BB&T Corp. .................. 83,924 1,958,786 Comerica, Inc. .............. 78,847 1,654,210 Fifth Third Bancorp.......... 693,184 2,842,054 First Horizon National Corp. .................... 139,009 1,599,994 Huntington Bancshares, Inc. ..................... 818,937 2,284,834 KeyCorp...................... 181,922 1,118,820 M&T Bank Corp. .............. 36,638 1,921,663 Marshall & Ilsley Corp. ..... 282,016 1,630,052 PNC Financial Services Group, Inc. ..................... 51,730 2,053,681 Regions Financial Corp. ..... 342,444 1,537,574 SunTrust Banks, Inc. ........ 116,888 1,687,863 U.S. Bancorp................. 103,948 1,893,933 Wells Fargo & Co. ........... 96,692 1,934,807 Zions Bancorp................ 141,440 1,545,939 ------------ TOTAL COMMERCIAL BANKS 25,664,210 ------------ COMMERCIAL SERVICES & SUPPLIES 2.5% Avery Dennison Corp. ........ 68,212 1,960,413 Cintas Corp. ................ 63,516 1,629,820 Dun & Bradstreet Corp. ...... 19,959 1,624,663
See Notes to Financial Statements. SEMI-ANNUAL REPORT 9 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Equifax, Inc. ............... 65,221 $1,901,844 Iron Mountain, Inc.*......... 67,993 1,937,121 Monster Worldwide, Inc.*..... 191,727 2,645,833 Pitney Bowes, Inc. .......... 66,546 1,633,039 R.R. Donnelley & Sons Co. ... 197,334 2,298,941 Republic Services, Inc. ..... 84,124 1,766,604 Robert Half International, Inc. ..................... 86,068 2,067,353 Stericycle, Inc.*............ 30,617 1,441,448 Waste Management, Inc. ...... 57,027 1,520,910 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 22,427,989 ------------ COMMUNICATIONS EQUIPMENT 1.9% Ciena Corp.*................. 204,116 2,439,186 Cisco Systems, Inc.*......... 90,814 1,754,526 Corning, Inc. ............... 114,193 1,669,502 Harris Corp. ................ 45,564 1,393,347 JDS Uniphase Corp.*.......... 440,501 2,030,709 Juniper Networks, Inc.*...... 94,378 2,043,284 Motorola, Inc. .............. 362,394 2,004,039 QUALCOMM, Inc. .............. 39,140 1,656,405 Tellabs, Inc.*............... 344,746 1,806,469 ------------ TOTAL COMMUNICATIONS EQUIPMENT 16,797,467 ------------ COMPUTERS & PERIPHERALS 2.1% Apple, Inc.*................. 14,446 1,817,740 Dell, Inc.*.................. 146,721 1,704,898 EMC Corp.*................... 128,342 1,608,125 Hewlett-Packard Co. ......... 50,576 1,819,725 International Business Machines Corp. ........... 15,901 1,641,142 Lexmark International, Inc. -- Class A*.......... 88,123 1,728,973 NetApp, Inc.*................ 94,567 1,730,576 QLogic Corp.*................ 130,631 1,852,348 SanDisk Corp.*............... 139,353 2,190,629 Sun Microsystems, Inc.*...... 171,846 1,574,110 Teradata Corp.*.............. 87,643 1,465,391 ------------ TOTAL COMPUTERS & PERIPHERALS 19,133,657 ------------ CONSTRUCTION & ENGINEERING 0.3% Fluor Corp. ................. 38,208 1,446,937 Jacobs Engineering Group, Inc.*..................... 36,868 1,402,459 ------------ TOTAL CONSTRUCTION & ENGINEERING 2,849,396 ------------ CONSTRUCTION MATERIALS 0.2% Vulcan Materials Co. ........ 37,077 1,763,011 ------------ TOTAL CONSTRUCTION MATERIALS 1,763,011 ------------ CONSUMER FINANCE 0.9% American Express Co. ........ 113,475 2,861,840 Capital One Financial Corp. .................... 120,941 2,024,552 Discover Financial Services.. 238,758 1,941,103 SLM Corp.*................... 341,975 1,651,739 ------------ TOTAL CONSUMER FINANCE 8,479,234 ------------ CONTAINERS & PACKAGING 1.2% Ball Corp. .................. 35,402 1,335,363 Bemis Co., Inc. ............. 72,529 1,743,597 Owens-Illinois, Inc.*........ 114,750 2,798,753 Pactiv Corp.*................ 113,832 2,488,368 Sealed Air Corp. ............ 111,815 2,131,194 ------------ TOTAL CONTAINERS & PACKAGING 10,497,275 ------------ DISTRIBUTORS 0.2% Genuine Parts Co. ........... 51,563 1,751,079 ------------ TOTAL DISTRIBUTORS 1,751,079 ------------ DIVERSIFIED CONSUMER SERVICES 0.3% Apollo Group, Inc. -- Class A*........................ 20,587 1,295,952 H&R Block, Inc. ............. 75,650 1,145,341 ------------ TOTAL DIVERSIFIED CONSUMER SERVICES 2,441,293 ------------ DIVERSIFIED FINANCIAL SERVICES 2.0% Bank of America Corp. ....... 200,306 1,788,733 CIT Group, Inc. ............. 604,515 1,342,023 Citigroup, Inc. ............. 565,029 1,723,338 CME Group, Inc. ............. 6,421 1,421,288 IntercontinentalExchange, Inc.*..................... 19,960 1,748,496 JPMorgan Chase & Co. ........ 59,534 1,964,622 Leucadia National Corp.*..... 113,943 2,419,010 Moody's Corp. ............... 77,265 2,280,863 Nasdaq OMX Group (The)*...... 69,637 1,339,120 NYSE Euronext................ 79,498 1,841,969 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 17,869,462 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 1.2% AT&T, Inc. .................. 57,495 1,473,022 CenturyTel, Inc. ............ 55,540 1,507,911 Embarq Corp. ................ 41,337 1,511,281 Frontier Communications Corp. .................... 225,159 1,600,880 Qwest Communications International, Inc. ...... 417,247 1,623,091 Verizon Communications, Inc. ..................... 48,732 1,478,529 Windstream Corp. ............ 184,001 1,527,208 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 10,721,922 ------------ ELECTRIC UTILITIES 2.3% Allegheny Energy, Inc. ...... 62,071 1,608,880 American Electric Power Co., Inc. ..................... 52,590 1,387,324 Duke Energy Corp. ........... 103,727 1,432,470 Edison International......... 50,676 1,444,773 Entergy Corp. ............... 21,773 1,410,237 Exelon Corp. ................ 32,890 1,517,216 FirstEnergy Corp. ........... 37,963 1,552,687 FPL Group, Inc. ............. 29,500 1,586,805 Northeast Utilities.......... 67,892 1,427,090 Pepco Holdings, Inc. ........ 118,928 1,421,190 Pinnacle West Capital Corp. .................... 55,862 1,529,501 PPL Corp. ................... 50,855 1,521,073 Progress Energy, Inc. ....... 41,702 1,422,872 Southern Co. ................ 48,460 1,399,525 ------------ TOTAL ELECTRIC UTILITIES 20,661,643 ------------
See Notes to Financial Statements. 10 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) ELECTRICAL EQUIPMENT 0.6% Cooper Industries, Ltd. -- Class A........... 59,213 $1,941,594 Emerson Electric Co. ........ 53,478 1,820,391 Rockwell Automation, Inc. ... 62,745 1,982,115 ------------ TOTAL ELECTRICAL EQUIPMENT 5,744,100 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS 1.4% Agilent Technologies, Inc.*.. 99,995 1,825,909 Amphenol Corp. -- Class A.... 52,002 1,759,748 FLIR Systems, Inc.*.......... 69,648 1,544,792 Jabil Circuit, Inc. ......... 348,538 2,823,158 Molex, Inc. ................. 113,216 1,887,311 Tyco Electronics, Ltd. ...... 139,676 2,435,949 ------------ TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 12,276,867 ------------ ENERGY EQUIPMENT & SERVICES 2.0% Baker Hughes, Inc. .......... 44,614 1,587,366 BJ Services Co. ............. 138,086 1,918,015 Cameron International Corp.*.................... 61,738 1,579,258 Diamond Offshore Drilling, Inc. ..................... 21,273 1,540,378 ENSCO International, Inc. ... 51,384 1,453,140 Halliburton Co. ............. 83,189 1,682,082 Nabors Industries, Ltd.*..... 134,805 2,050,384 National-Oilwell Varco, Inc.*..................... 47,126 1,426,975 Rowan Cos., Inc. ............ 103,802 1,620,349 Schlumberger, Ltd. .......... 33,484 1,640,381 Smith International, Inc. ... 58,737 1,518,351 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 18,016,679 ------------ FOOD & STAPLES RETAILING 1.7% Costco Wholesale Corp. ...... 32,630 1,585,818 CVS Caremark Corp. .......... 55,182 1,753,684 Kroger Co.(The).............. 70,256 1,518,935 Safeway, Inc. ............... 74,862 1,478,524 SUPERVALU, Inc. ............. 98,626 1,612,535 Sysco Corp. ................. 64,195 1,497,669 Wal-Mart Stores, Inc. ....... 29,480 1,485,792 Walgreen Co. ................ 61,053 1,918,896 Whole Foods Market, Inc. .... 92,108 1,909,399 ------------ TOTAL FOOD & STAPLES RETAILING 14,761,252 ------------ FOOD PRODUCTS 2.4% Archer-Daniels-Midland Co. .. 52,381 1,289,620 Campbell Soup Co. ........... 55,728 1,433,324 ConAgra Foods, Inc. ......... 100,462 1,778,177 Dean Foods Co.*.............. 74,718 1,546,663 General Mills, Inc. ......... 31,085 1,575,699 H.J. Heinz Co. .............. 44,089 1,517,543 Hershey Co.(The)............. 42,101 1,521,530 Hormel Foods Corp. .......... 47,684 1,492,032 J.M. Smucker Co.(The)........ 40,516 1,596,330 Kellogg Co. ................. 40,128 1,689,790 Kraft Foods, Inc. -- Class A......................... 66,357 1,552,754 McCormick & Co., Inc. ....... 45,570 1,342,037 Sara Lee Corp. .............. 181,906 1,513,458 Tyson Foods, Inc. -- Class A......................... 157,707 1,662,232 ------------ TOTAL FOOD PRODUCTS 21,511,189 ------------ GAS UTILITIES 0.5% EQT Corp. ................... 42,913 1,443,164 Nicor, Inc. ................. 43,787 1,407,314 Questar Corp. ............... 46,090 1,369,795 ------------ TOTAL GAS UTILITIES 4,220,273 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 2.4% Baxter International, Inc. .. 29,341 1,423,038 Becton, Dickinson & Co. ..... 23,010 1,391,645 Boston Scientific Corp.*..... 189,821 1,596,395 C.R. Bard, Inc. ............. 19,152 1,371,858 Covidien, Ltd. .............. 46,847 1,545,014 Dentsply International, Inc. ..................... 59,359 1,698,855 Hospira, Inc.*............... 58,292 1,916,058 Intuitive Surgical, Inc.*.... 15,178 2,181,534 Medtronic, Inc. ............. 52,759 1,688,288 St Jude Medical, Inc.*....... 41,353 1,386,152 Stryker Corp. ............... 46,667 1,806,480 Varian Medical Systems, Inc.*..................... 49,635 1,656,320 Zimmer Holdings, Inc.*....... 41,863 1,841,553 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 21,503,190 ------------ HEALTH CARE PROVIDERS & SERVICES 3.2% Aetna, Inc. ................. 62,277 1,370,717 AmerisourceBergen Corp. ..... 48,211 1,621,818 Cardinal Health, Inc. ....... 46,837 1,582,622 CIGNA Corp. ................. 82,806 1,632,106 Coventry Health Care, Inc.*.. 125,357 1,994,430 DaVita, Inc.*................ 32,969 1,528,773 Express Scripts, Inc.*....... 31,643 2,024,203 Humana, Inc.*................ 58,002 1,669,298 Laboratory Corp. of America Holdings*................. 25,961 1,665,398 McKesson Corp. .............. 41,059 1,519,183 Medco Health Solutions, Inc.*..................... 37,924 1,651,590 Patterson Cos., Inc.*........ 81,628 1,670,109 Quest Diagnostics, Inc. ..... 33,122 1,700,152 Tenet Healthcare Corp.*...... 1,409,245 3,170,801 UnitedHealth Group, Inc. .... 69,305 1,630,054 WellPoint, Inc.*............. 40,786 1,744,009 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 28,175,263 ------------ HEALTH CARE TECHNOLOGY 0.2% IMS Health, Inc. ............ 123,199 1,547,379 ------------ TOTAL HEALTH CARE TECHNOLOGY 1,547,379 ------------ HOTELS, RESTAURANTS & LEISURE 2.4% Carnival Corp. .............. 66,091 1,776,526 Darden Restaurants, Inc. .... 42,244 1,561,761 International Game Technology................ 153,261 1,892,773 Marriott International, Inc. -- Class A........... 92,677 2,183,470 McDonald's Corp. ............ 26,972 1,437,338 Starbucks Corp.*............. 127,443 1,842,826
See Notes to Financial Statements. SEMI-ANNUAL REPORT 11 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Starwood Hotels & Resorts Worldwide, Inc. .......... 115,394 $2,407,119 Wyndham Worldwide Corp. ..... 350,502 4,093,863 Wynn Resorts Ltd.*........... 70,834 2,778,818 Yum! Brands, Inc. ........... 54,335 1,812,072 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 21,786,566 ------------ HOUSEHOLD DURABLES 3.0% Black & Decker Corp. ........ 55,504 2,236,811 Centex Corp. ................ 189,457 2,072,660 D.R. Horton, Inc. ........... 167,069 2,180,250 Fortune Brands, Inc. ........ 62,273 2,447,952 Harman International Industries, Inc. ......... 125,112 2,275,787 KB HOME...................... 124,029 2,241,204 Leggett & Platt, Inc. ....... 119,361 1,714,024 Lennar Corp. -- Class A...... 174,040 1,695,150 Newell Rubbermaid, Inc. ..... 219,613 2,294,956 Pulte Homes, Inc. ........... 143,337 1,649,809 Snap-on, Inc. ............... 56,241 1,907,695 Stanley Works(The)........... 51,505 1,958,735 Whirlpool Corp. ............. 53,877 2,433,085 ------------ TOTAL HOUSEHOLD DURABLES 27,108,118 ------------ HOUSEHOLD PRODUCTS 0.7% Clorox Co. .................. 29,600 1,659,080 Colgate-Palmolive Co. ....... 25,632 1,512,288 Kimberly-Clark Corp. ........ 31,646 1,555,084 Procter & Gamble Co. ........ 31,813 1,572,835 ------------ TOTAL HOUSEHOLD PRODUCTS 6,299,287 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.6% AES Corp.(The)*.............. 223,482 1,580,018 Constellation Energy Group, Inc. ..................... 75,001 1,806,024 Dynegy, Inc. -- Class A*..... 949,257 1,689,677 ------------ TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 5,075,719 ------------ INDUSTRIAL CONGLOMERATES 0.7% 3M Co. ...................... 31,110 1,791,936 General Electric Co. ........ 146,319 1,850,936 Textron, Inc. ............... 228,273 2,449,369 ------------ TOTAL INDUSTRIAL CONGLOMERATES 6,092,241 ------------ INSURANCE 4.5% AFLAC, Inc. ................. 74,852 2,162,474 Allstate Corp. .............. 78,479 1,830,915 American International Group, Inc. ..................... 945,397 1,304,648 Aon Corp. ................... 37,775 1,594,105 Assurant, Inc. .............. 67,804 1,657,130 Chubb Corp. ................. 35,422 1,379,687 Cincinnati Financial Corp. .. 68,960 1,651,592 Genworth Financial, Inc. -- Class A........... 821,925 1,939,743 Hartford Financial Services Group, Inc. .............. 184,761 2,119,209 Lincoln National Corp. ...... 185,412 2,084,031 Loews Corp. ................. 64,324 1,601,024 Marsh & McLennan Cos., Inc. ..................... 73,566 1,551,507 MBIA, Inc.*.................. 333,002 1,575,099 MetLife, Inc. ............... 66,364 1,974,329 Principal Financial Group, Inc. ..................... 191,932 3,136,169 Progressive Corp.*........... 113,464 1,733,730 Prudential Financial, Inc. .. 79,752 2,303,238 Torchmark Corp. ............. 56,615 1,660,518 Travelers Cos., Inc.(The).... 37,456 1,540,940 Unum Group................... 122,575 2,002,875 XL Capital, Ltd. -- Class A.. 303,131 2,882,776 ------------ TOTAL INSURANCE 39,685,739 ------------ INTERNET & CATALOG RETAIL 0.5% Amazon.com, Inc.*............ 20,986 1,689,793 Expedia, Inc.*............... 191,603 2,607,717 ------------ TOTAL INTERNET & CATALOG RETAIL 4,297,510 ------------ INTERNET SOFTWARE & SERVICES 0.9% Akamai Technologies, Inc.*... 77,557 1,707,805 eBay, Inc.*.................. 120,306 1,981,440 Google, Inc. -- Class A*..... 4,446 1,760,483 VeriSign, Inc.*.............. 73,987 1,522,652 Yahoo!, Inc.*................ 107,133 1,530,931 ------------ TOTAL INTERNET SOFTWARE & SERVICES 8,503,311 ------------ IT SERVICES 2.0% Affiliated Computer Services, Inc. -- Class A*.......... 31,445 1,521,309 Automatic Data Processing, Inc. ..................... 40,078 1,410,746 Cognizant Technology Solutions Corp. -- Class A*........................ 68,536 1,699,007 Computer Sciences Corp.*..... 41,594 1,537,314 Convergys Corp.*............. 204,702 2,069,537 Fidelity National Information Services, Inc. ........... 83,446 1,489,511 Fiserv, Inc.*................ 42,558 1,588,265 Mastercard, Inc. -- Class A.. 8,834 1,620,597 Paychex, Inc. ............... 63,566 1,716,918 Total System Services, Inc. ..................... 111,641 1,392,163 Western Union Co. ........... 122,964 2,059,647 ------------ TOTAL IT SERVICES 18,105,014 ------------ LEISURE EQUIPMENT & PRODUCTS 0.5% Eastman Kodak Co. ........... 391,970 1,195,508 Hasbro, Inc. ................ 62,182 1,657,772 Mattel, Inc. ................ 130,703 1,955,317 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 4,808,597 ------------ LIFE SCIENCES TOOLS & SERVICES 1.0% Life Technologies Corp.*..... 47,785 1,782,381 Millipore Corp.*............. 25,951 1,533,704 PerkinElmer, Inc. ........... 122,786 1,788,992 Thermo Fisher Scientific Inc.*..................... 43,717 1,533,592 Waters Corp.*................ 45,451 2,007,571 ------------ TOTAL LIFE SCIENCES TOOLS & SERVICES 8,646,240 ------------ MACHINERY 2.8% Caterpillar, Inc. ........... 52,069 1,852,615 Cummins, Inc. ............... 60,871 2,069,614 Danaher Corp. ............... 26,918 1,573,088 Deere & Co. ................. 46,389 1,914,010
See Notes to Financial Statements. 12 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Dover Corp. ................. 56,743 $1,746,550 Eaton Corp. ................. 41,781 1,830,008 Flowserve Corp. ............. 25,400 1,724,660 Illinois Tool Works, Inc. ... 51,346 1,684,149 Ingersoll-Rand Co., Ltd. -- Class A........... 100,285 2,183,204 Manitowoc Co., Inc. ......... 341,777 2,033,573 PACCAR, Inc. ................ 56,700 2,009,448 Pall Corp. .................. 73,395 1,938,362 Parker-Hannifin Corp. ....... 45,132 2,046,736 ------------ TOTAL MACHINERY 24,606,017 ------------ MEDIA 3.6% CBS Corp. -- Class B......... 343,376 2,417,367 Comcast Corp. -- Class A..... 112,996 1,746,918 DIRECTV Group, Inc.(The)*.... 66,750 1,650,728 Gannett Co., Inc. ........... 657,776 2,571,904 Interpublic Group of Cos., Inc.*..................... 365,363 2,287,172 McGraw-Hill Cos., Inc. ...... 75,196 2,267,159 Meredith Corp. .............. 94,644 2,373,672 New York Times Co. -- Class A......................... 327,409 1,761,460 News Corp. -- Class A........ 236,991 1,957,546 Omnicom Group, Inc. ......... 59,831 1,882,882 Scripps Networks Interactive -- Class A.... 68,960 1,892,262 Time Warner Cable, Inc. ..... 63,474 2,045,767 Time Warner, Inc. ........... 82,342 1,797,526 Viacom, Inc. -- Class B*..... 90,217 1,735,775 Walt Disney Co.(The)......... 83,232 1,822,781 Washington Post Co. -- Class B......................... 4,227 1,769,380 ------------ TOTAL MEDIA 31,980,299 ------------ METALS & MINING 1.7% AK Steel Holding Corp. ...... 197,231 2,565,975 Alcoa, Inc. ................. 229,192 2,078,771 Allegheny Technologies, Inc. ..................... 68,262 2,234,215 Freeport-McMoRan Copper & Gold, Inc. ............... 36,848 1,571,567 Newmont Mining Corp. ........ 34,198 1,376,128 Nucor Corp. ................. 38,672 1,573,564 Titanium Metals Corp. ....... 265,549 1,803,078 United States Steel Corp. ... 70,787 1,879,395 ------------ TOTAL METALS & MINING 15,082,693 ------------ MULTI-UTILITIES 2.5% Ameren Corp. ................ 66,889 1,539,785 CenterPoint Energy, Inc. .... 141,378 1,504,262 CMS Energy Corp. ............ 123,272 1,481,729 Consolidated Edison, Inc. ... 38,722 1,437,748 Dominion Resources, Inc. .... 47,138 1,421,682 DTE Energy Co. .............. 53,876 1,593,113 Integrys Energy Group, Inc. ..................... 56,577 1,494,198 NiSource, Inc. .............. 151,693 1,667,106 PG&E Corp. .................. 38,273 1,420,694 Public Service Enterprise Group, Inc. .............. 52,481 1,566,033 SCANA Corp. ................. 49,030 1,481,687 Sempra Energy................ 34,016 1,565,416 TECO Energy, Inc. ........... 129,725 1,373,788 Wisconsin Energy Corp. ...... 36,927 1,475,603 Xcel Energy, Inc. ........... 80,841 1,490,708 ------------ TOTAL MULTI-UTILITIES 22,513,552 ------------ MULTILINE RETAIL 1.8% Big Lots, Inc.*.............. 71,833 1,985,464 Family Dollar Stores, Inc. .. 47,007 1,560,162 J.C. Penney Co., Inc. ....... 83,337 2,557,613 Kohl's Corp.*................ 35,773 1,622,306 Macy's, Inc. ................ 170,052 2,326,311 Nordstrom, Inc. ............. 97,138 2,198,233 Sears Holdings Corp.*........ 36,678 2,291,275 Target Corp. ................ 46,978 1,938,312 ------------ TOTAL MULTILINE RETAIL 16,479,676 ------------ OFFICE ELECTRONICS 0.2% Xerox Corp. ................. 284,535 1,738,509 ------------ TOTAL OFFICE ELECTRONICS 1,738,509 ------------ OIL, GAS & CONSUMABLE FUELS 4.9% Anadarko Petroleum Corp. .... 35,243 1,517,564 Apache Corp. ................ 21,972 1,600,880 Cabot Oil & Gas Corp. ....... 56,002 1,690,700 Chesapeake Energy Corp. ..... 81,980 1,615,826 Chevron Corp. ............... 22,029 1,456,117 ConocoPhillips............... 38,523 1,579,443 CONSOL Energy, Inc. ......... 48,635 1,521,303 Denbury Resources, Inc.*..... 93,694 1,525,338 Devon Energy Corp. .......... 30,168 1,564,211 El Paso Corp. ............... 212,295 1,464,835 EOG Resources, Inc. ......... 23,289 1,478,386 Exxon Mobil Corp. ........... 21,618 1,441,272 Hess Corp. .................. 22,797 1,249,048 Marathon Oil Corp. .......... 58,042 1,723,847 Massey Energy Co. ........... 122,535 1,949,532 Murphy Oil Corp. ............ 29,394 1,402,388 Noble Energy, Inc. .......... 27,561 1,564,087 Occidental Petroleum Corp. .. 25,072 1,411,303 Peabody Energy Corp. ........ 52,329 1,380,962 Pioneer Natural Resources Co. ...................... 84,187 1,946,403 Range Resources Corp. ....... 34,780 1,390,157 Southwestern Energy Co.*..... 46,162 1,655,369 Spectra Energy Corp. ........ 104,355 1,513,147 Sunoco, Inc. ................ 51,829 1,373,987 Tesoro Corp. ................ 98,484 1,501,881 Valero Energy Corp. ......... 76,444 1,516,649 Williams Cos., Inc. ......... 121,858 1,718,198 XTO Energy, Inc. ............ 43,697 1,514,538 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 43,267,371 ------------ PAPER & FOREST PRODUCTS 0.7% International Paper Co. ..... 199,356 2,523,847 MeadWestvaco Corp. .......... 127,973 2,004,057 Weyerhaeuser Co. ............ 52,870 1,864,196 ------------ TOTAL PAPER & FOREST PRODUCTS 6,392,100 ------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 13 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) PERSONAL PRODUCTS 0.4% Avon Products, Inc. ......... 80,036 $1,821,619 Estee Lauder Cos., Inc -- Class A............ 62,420 1,866,358 ------------ TOTAL PERSONAL PRODUCTS 3,687,977 ------------ PHARMACEUTICALS 2.2% Abbott Laboratories.......... 30,946 1,295,090 Allergan, Inc. .............. 36,688 1,711,862 Bristol-Myers Squibb Co. .... 70,731 1,358,035 Eli Lilly & Co. ............. 46,099 1,517,579 Forest Laboratories, Inc.*... 69,557 1,508,691 Johnson & Johnson, Inc. ..... 29,280 1,533,101 King Pharmaceuticals, Inc.*.. 212,083 1,671,214 Merck & Co., Inc. ........... 56,316 1,365,100 Mylan Inc.*.................. 111,643 1,479,270 Pfizer, Inc. ................ 107,403 1,434,904 Schering-Plough Corp. ....... 63,694 1,466,236 Watson Pharmaceuticals, Inc.*..................... 52,849 1,635,148 Wyeth........................ 34,783 1,474,799 ------------ TOTAL PHARMACEUTICALS 19,451,029 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 3.1% Apartment Investment & Management Co. -- Class A......................... 272,172 1,986,856 AvalonBay Communities, Inc. ..................... 30,509 1,733,216 Boston Properties, Inc. ..... 37,993 1,877,614 Equity Residential........... 77,967 1,784,665 HCP, Inc. ................... 79,919 1,754,222 Health Care REIT, Inc. ...... 47,165 1,606,912 Host Hotels & Resorts, Inc. ..................... 343,952 2,644,991 Kimco Realty Corp. .......... 178,964 2,151,147 Plum Creek Timber Co., Inc. ..................... 53,743 1,855,208 ProLogis..................... 234,717 2,138,272 Public Storage, Inc. ........ 26,689 1,784,426 Simon Property Group, Inc. .. 43,018 2,219,729 Ventas, Inc. ................ 63,286 1,812,511 Vornado Realty Trust......... 40,594 1,984,641 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 27,334,410 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 0.5% CB Richard Ellis Group, Inc. -- Class A*.......... 555,691 4,167,682 ------------ TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 4,167,682 ------------ ROAD & RAIL 0.9% Burlington Northern Santa Fe Corp. .................... 26,001 1,754,547 CSX Corp. ................... 58,770 1,739,004 Norfolk Southern Corp. ...... 46,942 1,674,891 Ryder System, Inc. .......... 54,710 1,514,920 Union Pacific Corp. ......... 37,326 1,834,200 ------------ TOTAL ROAD & RAIL 8,517,562 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.4% Advanced Micro Devices, Inc.*..................... 504,271 1,820,418 Altera Corp. ................ 84,401 1,376,580 Analog Devices, Inc. ........ 72,812 1,549,439 Applied Materials, Inc. ..... 138,264 1,688,204 Broadcom Corp. -- Class A*... 74,792 1,734,427 Intel Corp. ................. 97,446 1,537,698 KLA-Tencor Corp. ............ 71,849 1,993,091 Linear Technology Corp. ..... 63,756 1,388,606 LSI Corp.*................... 456,135 1,751,558 MEMC Electronic Materials, Inc.*..................... 95,285 1,543,617 Microchip Technology, Inc. .. 70,830 1,629,090 Micron Technology, Inc.*..... 404,378 1,973,365 National Semiconductor Corp. .................... 135,901 1,681,095 Novellus Systems, Inc.*...... 100,303 1,811,472 NVIDIA Corp.*................ 146,955 1,687,043 Teradyne, Inc.*.............. 333,652 1,981,893 Texas Instruments, Inc. ..... 89,162 1,610,266 Xilinx, Inc. ................ 74,111 1,514,829 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 30,272,691 ------------ SOFTWARE 2.7% Adobe Systems, Inc.*......... 69,559 1,902,439 Autodesk, Inc.*.............. 106,482 2,123,251 BMC Software, Inc.*.......... 46,579 1,614,894 CA, Inc. .................... 89,005 1,535,336 Citrix Systems, Inc.*........ 62,072 1,770,914 Compuware Corp.*............. 258,228 1,931,545 Electronic Arts, Inc.*....... 78,010 1,587,504 Intuit, Inc.*................ 55,431 1,282,119 McAfee, Inc.*................ 46,684 1,752,517 Microsoft Corp. ............. 85,848 1,739,281 Novell, Inc.*................ 340,457 1,280,118 Oracle Corp. ................ 84,782 1,639,684 Salesforce.com, Inc.*........ 41,464 1,775,074 Symantec Corp.*.............. 103,833 1,791,119 ------------ TOTAL SOFTWARE 23,725,795 ------------ SPECIALTY RETAIL 3.6% Abercrombie & Fitch Co. -- Class A............ 64,237 1,738,253 AutoNation, Inc.*............ 109,368 1,936,907 AutoZone, Inc.*.............. 9,162 1,524,465 Bed Bath & Beyond, Inc.*..... 62,321 1,895,805 Best Buy Co., Inc. .......... 43,972 1,687,645 GameStop Corp. -- Class A*... 57,973 1,748,466 Gap, Inc.(The)............... 118,428 1,840,371 Home Depot, Inc. ............ 65,630 1,727,382 Limited Brands, Inc. ........ 175,984 2,009,737 Lowe's Cos., Inc. ........... 83,827 1,802,280 O'Reilly Automotive, Inc.*... 42,121 1,636,401 Office Depot, Inc.*.......... 1,079,361 2,795,545 RadioShack Corp. ............ 171,429 2,413,720 Sherwin-Williams Co.(The).... 32,843 1,860,228 Staples, Inc. ............... 85,709 1,767,320 Tiffany & Co. ............... 71,004 2,054,856 TJX Cos., Inc. .............. 58,672 1,641,056 ------------ TOTAL SPECIALTY RETAIL 32,080,437 ------------
See Notes to Financial Statements. 14 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONCLUDED) TEXTILES, APPAREL & LUXURY GOODS 0.8% Coach, Inc.*................. 94,638 $2,318,631 NIKE, Inc. -- Class B........ 31,770 1,666,972 Polo Ralph Lauren Corp. ..... 37,467 2,017,223 V.F. Corp. .................. 25,773 1,527,566 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 7,530,392 ------------ THRIFTS & MORTGAGE FINANCE 0.3% Hudson City Bancorp, Inc. ... 131,224 1,648,174 People's United Financial, Inc. ..................... 86,776 1,355,441 ------------ TOTAL THRIFTS & MORTGAGE FINANCE 3,003,615 ------------ TOBACCO 0.7% Altria Group, Inc. .......... 88,031 1,437,546 Lorillard, Inc. ............. 24,236 1,530,019 Philip Morris International, Inc. ..................... 39,399 1,426,244 Reynolds American, Inc. ..... 40,640 1,543,507 ------------ TOTAL TOBACCO 5,937,316 ------------ TRADING COMPANIES & DISTRIBUTORS 0.4% Fastenal Co. ................ 50,017 1,918,652 W.W. Grainger, Inc. ......... 21,755 1,824,810 ------------ TOTAL TRADING COMPANIES & DISTRIBUTORS 3,743,462 ------------ WIRELESS TELECOMMUNICATION SERVICES 0.4% American Tower Corp. -- Class A*........................ 47,705 1,515,111 Sprint Nextel Corp.*......... 393,235 1,714,504 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 3,229,615 ------------ TOTAL COMMON STOCKS (Cost $1,261,984,195) 887,939,179 ------------ SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund...................... 1,546,261 1,546,261 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $1,546,261) 1,546,261 ------------ TOTAL INVESTMENTS 99.9% (Cost $1,263,530,456) 889,485,440 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 595,386 ------------ NET ASSETS--100.0% $890,080,826 ---------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 RYDEX RUSSELL TOP 50 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS 99.7% AEROSPACE & DEFENSE 2.0% Boeing Co. .................. 60,466 $2,421,663 United Technologies Corp. ... 78,314 3,824,856 ------------ TOTAL AEROSPACE & DEFENSE 6,246,519 ------------ AIR FREIGHT & LOGISTICS 0.9% United Parcel Service, Inc. -- Class B........... 55,038 2,880,689 ------------ TOTAL AIR FREIGHT & LOGISTICS 2,880,689 ------------ BEVERAGES 4.7% Coca-Cola Co.(The)........... 186,918 8,046,820 PepsiCo, Inc. ............... 127,638 6,351,267 ------------ TOTAL BEVERAGES 14,398,087 ------------ CAPITAL MARKETS 1.7% Goldman Sachs Group, Inc.(The)................. 40,364 5,186,774 ------------ TOTAL CAPITAL MARKETS 5,186,774 ------------ CHEMICALS 1.4% Monsanto Co. ................ 44,162 3,748,912 Mosaic Co (The).............. 12,492 505,301 ------------ TOTAL CHEMICALS 4,254,213 ------------ COMMERCIAL BANKS 3.0% U.S. Bancorp................. 140,068 2,552,039 Wells Fargo & Co. ........... 339,572 6,794,836 ------------ TOTAL COMMERCIAL BANKS 9,346,875 ------------ COMMUNICATIONS EQUIPMENT 4.8% Cisco Systems, Inc.*......... 475,358 9,183,916 QUALCOMM, Inc. .............. 130,256 5,512,434 ------------ TOTAL COMMUNICATIONS EQUIPMENT 14,696,350 ------------ COMPUTERS & PERIPHERALS 8.9% Apple, Inc.*................. 70,944 8,926,884 Hewlett-Packard Co. ......... 198,388 7,138,000 International Business Machines Corp. ........... 110,526 11,407,388 ------------ TOTAL COMPUTERS & PERIPHERALS 27,472,272 ------------ DIVERSIFIED FINANCIAL SERVICES 5.1% Bank of America Corp. ....... 509,490 4,549,746 Citigroup, Inc. ............. 438,106 1,336,223 JPMorgan Chase & Co. ........ 298,068 9,836,244 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 15,722,213 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 6.3% AT&T, Inc. .................. 478,086 12,248,563 Verizon Communications, Inc. ..................... 229,394 6,959,814 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 19,208,377 ------------ ELECTRIC UTILITIES 0.8% Exelon Corp. ................ 52,790 2,435,203 ------------ TOTAL ELECTRIC UTILITIES 2,435,203 ------------ ENERGY EQUIPMENT & SERVICES 1.5% Schlumberger, Ltd. .......... 96,010 4,703,530 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 4,703,530 ------------ FOOD & STAPLES RETAILING 4.2% CVS Caremark Corp. .......... 115,024 3,655,463 Wal-Mart Stores, Inc. ....... 180,550 9,099,720 ------------ TOTAL FOOD & STAPLES RETAILING 12,755,183 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 0.9% Medtronic, Inc. ............. 90,378 2,892,096 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,892,096 ------------ HOTELS, RESTAURANTS & LEISURE 1.6% McDonald's Corp. ............ 91,216 4,860,901 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 4,860,901 ------------ HOUSEHOLD PRODUCTS 3.9% Procter & Gamble Co. ........ 242,570 $11,992,661 ------------ TOTAL HOUSEHOLD PRODUCTS 11,992,661 ------------ INDUSTRIAL CONGLOMERATES 4.5% 3M Co. ...................... 56,674 3,264,422 General Electric Co. ........ 846,740 10,711,261 ------------ TOTAL INDUSTRIAL CONGLOMERATES 13,975,683 ------------ INSURANCE 0.1% American International Group, Inc. ..................... 186,950 257,991 ------------ TOTAL INSURANCE 257,991 ------------ INTERNET SOFTWARE & SERVICES 2.5% Google, Inc. -- Class A*..... 19,054 7,544,812 ------------ TOTAL INTERNET SOFTWARE & SERVICES 7,544,812 ------------ IT SERVICES 0.8% Visa, Inc. -- Class A........ 36,024 2,340,119 ------------ TOTAL IT SERVICES 2,340,119 ------------ MEDIA 2.9% Comcast Corp. -- Class A..... 225,642 3,488,425 Time Warner, Inc. ........... 95,990 2,095,462 Walt Disney Co.(The)......... 153,318 3,357,664 ------------ TOTAL MEDIA 8,941,551 ------------ OIL, GAS & CONSUMABLE FUELS 15.1% Chevron Corp. ............... 166,444 11,001,948 ConocoPhillips............... 124,122 5,089,002 Exxon Mobil Corp. ........... 400,426 26,696,402 Occidental Petroleum Corp. .. 66,048 3,717,842 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 46,505,194 ------------ PHARMACEUTICALS 11.6% Abbott Laboratories.......... 124,194 5,197,519 Eli Lilly & Co. ............. 80,420 2,647,426 Johnson & Johnson, Inc. ..... 226,786 11,874,515
See Notes to Financial Statements. 16 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONCLUDED) Merck & Co., Inc. ........... 172,740 $4,187,218 Pfizer, Inc. ................ 544,410 7,273,318 Wyeth........................ 107,296 4,549,350 ------------ TOTAL PHARMACEUTICALS 35,729,346 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.4% Intel Corp. ................. 460,944 7,273,696 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 7,273,696 ------------ SOFTWARE 6.2% Microsoft Corp. ............. 646,032 13,088,608 Oracle Corp. ................ 313,402 6,061,195 ------------ TOTAL SOFTWARE 19,149,803 ------------ TOBACCO 1.9% Philip Morris International, Inc. ..................... 159,264 5,765,357 ------------ TOTAL TOBACCO 5,765,357 ------------ TOTAL COMMON STOCKS (Cost $490,685,903) 306,535,495 ------------ SHORT TERM INVESTMENTS 0.5% SSgA Government Money Market Fund...................... 1,399,099 1,399,099 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $1,399,099) 1,399,099 ------------ TOTAL INVESTMENTS 100.2% (Cost $492,085,002) 307,934,594 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS--(0.2)% (559,957) ------------ NET ASSETS--100.0% $307,374,637 ---------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 STATEMENT OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX RUSSELL EQUAL TOP 50 WEIGHT ETF ETF -------------- ------------- ASSETS Investments at Market Value*............................. $ 889,485,440 $ 307,934,594 Receivables: Investments Sold....................................... -- 6,919,347 Fund Shares Sold....................................... 17,020,328 6,681,333 Dividends.............................................. 840,028 523,426 -------------- ------------- TOTAL ASSETS........................................ 907,345,796 322,058,700 -------------- ------------- LIABILITIES Payables: Investments Purchased.................................. 17,003,009 8,055,438 Fund Shares Repurchased................................ -- 6,571,715 Accrued Management Fees................................ 261,961 56,910 -------------- ------------- TOTAL LIABILITIES................................... 17,264,970 14,684,063 -------------- ------------- NET ASSETS............................................... $ 890,080,826 $ 307,374,637 ============== ============= NET ASSETS CONSIST OF: Paid-in Capital.......................................... $1,546,463,331 $ 533,945,791 Undistributed Net Investment Income...................... 611,207 627,390 Accumulated Net Realized Loss on Investment Securities... (282,948,696) (43,048,136) Net Unrealized Depreciation on Investment Securities..... (374,045,016) (184,150,408) -------------- ------------- NET ASSETS............................................... $ 890,080,826 $ 307,374,637 ============== ============= Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................................. 30,308,328 4,600,478 ============== ============= Net Asset Value, Offering Price and Repurchase Price Per Share.................................................. $ 29.37 $ 66.81 ============== ============= *Total Cost of Investments............................... $1,263,530,456 $ 492,085,002 ============== =============
See Notes to Financial Statements. 18 STATEMENT OF OPERATIONS For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX RUSSELL EQUAL TOP 50 WEIGHT ETF ETF ------------- ------------- INVESTMENT INCOME Dividends............................................... $ 10,107,935 $ 6,784,508 ------------- ------------ EXPENSES Management Fee.......................................... 1,443,559 397,804 ------------- ------------ Net Investment Income..................................... 8,664,376 6,386,704 ------------- ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Loss From: Investments............................................. (158,872,454) (8,891,984) In-kind Redemptions..................................... (49,717,436) (35,032,713) ------------- ------------ Net Realized Loss.................................... (208,589,890) (43,924,697) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities................................... 185,871,136 (27,647,941) ------------- ------------ Net Realized and Unrealized Loss on Investments........... (22,718,754) (71,572,638) ------------- ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS......................................... $ (14,054,378) $(65,185,934) ============= ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income.......... $ 8,664,376 $ 22,366,704 $ 6,386,704 $ 13,478,166 Net Realized Loss.............. (208,589,890) (38,415,845) (43,924,697) (22,149,607) Net Change in Unrealized Appreciation (Depreciation) on Investments.............. 185,871,136 (632,923,455) (27,647,941) (210,678,370) ------------- --------------- ------------- ------------- Net Decrease in Net Assets Resulting From Operations... (14,054,378) (648,972,596) (65,185,934) (219,349,811) ------------- --------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.......... (8,053,169) (21,971,144) (6,598,281) (13,329,460) ------------- --------------- ------------- ------------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased................... 366,951,841 619,139,869 181,355,285 283,203,866 Value of Shares Purchased through Dividend Reinvestments............... 12,490 39,088 13,347 22,733 Value of Shares Redeemed....... (298,192,874) (1,282,510,869) (237,087,835) (297,024,052) ------------- --------------- ------------- ------------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions................ 68,771,457 (663,331,912) (55,719,203) (13,797,453) ------------- --------------- ------------- ------------- Increase (Decrease) in Net Assets.................... 46,663,910 (1,334,275,652) (127,503,418) (246,476,724) NET ASSETS--BEGINNING OF PERIOD.. 843,416,916 2,177,692,568 434,878,055 681,354,779 ------------- --------------- ------------- ------------- NET ASSETS--END OF PERIOD(1)..... $ 890,080,826 $ 843,416,916 $ 307,374,637 $ 434,878,055 ============= =============== ============= ============= (1) Including Undistributed Net Investment Income............ $ 611,207 $ -- $ 627,390 $ 838,967 ============= =============== ============= ============= CHANGES IN SHARES OUTSTANDING: Shares Purchased............... 13,700,000 14,600,000 2,600,000 3,050,000 Shares Purchased through Dividend Reinvestments...... 477 905 202 241 Shares Redeemed................ (11,500,000) (29,504,000) (3,700,000) (3,200,000) Shares Outstanding, Beginning of Period................... 28,107,851 43,010,946 5,700,276 5,850,035 ------------- --------------- ------------- ------------- Shares Outstanding, End of Period...................... 30,308,328 28,107,851 4,600,478 5,700,276 ============= =============== ============= =============
See Notes to Financial Statements. 20 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF ---------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED APRIL 30, 2009 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, (UNAUDITED) 2008 2007 2006(1)(2) 2005(1) 2004(1) --------------- --------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.... $30.01 $50.63 $46.06 $39.68 $35.70 $31.61 -------- -------- ---------- ---------- ---------- -------- Net Investment Income*... 0.31 0.72 0.59 0.52 0.43 0.37 Net Realized and Unrealized Gain (Loss) on Investments......... (0.64) (20.64) 4.56 6.36 3.95 4.08 -------- -------- ---------- ---------- ---------- -------- TOTAL FROM INVESTMENT OPERATIONS............. (0.33) (19.92) 5.15 6.88 4.38 4.45 -------- -------- ---------- ---------- ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (0.31) (0.70) (0.58) (0.50) (0.40) (0.36) -------- -------- ---------- ---------- ---------- -------- NET ASSET VALUE AT END OF PERIOD................. $29.37 $30.01 $50.63 $46.06 $39.68 $35.70 ======== ======== ========== ========== ========== ======== TOTAL RETURN**........... (1.96)% (39.75)% 11.23% 17.42% 12.29% 14.11% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $890,081 $843,417 $2,177,693 $1,759,797 $1,071,410 $485,636 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.40%*** 0.40% 0.40% 0.40% 0.40% 0.40% Net Investment Income.... 2.37%*** 1.65% 1.22% 1.21% 1.11% 1.09% Portfolio Turnover Rate+.................. 21% 32% 25% 16% 22% 55%
(1) All per share information representing data prior to April 26, 2006 has been adjusted for the effect of a 4 for 1 stock split which occurred on April 26, 2006. (2) Beginning with the year ended October 31, 2006, the fund was audited by Ernest & Young LLP. The previous periods were audited by another independent registered public accounting firm. * Based on average shares outstanding. ** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. *** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX RUSSELL TOP 50 ETF ----------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED APRIL 30, 2009 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, (UNAUDITED) 2008 2007 2006(1) 2005* --------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD......................... $76.29 $116.47 $104.15 $91.39 $91.51 -------- -------- -------- -------- -------- Net Investment Income**.......... 1.05 2.34 2.15 1.92 0.79 Net Realized and Unrealized Gain (Loss) on Investments.......... (9.47) (40.20) 12.25 12.71 (0.46) -------- -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS..................... (8.42) (37.86) 14.40 14.63 0.33 -------- -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (1.06) (2.32) (2.08) (1.87) (0.45) -------- -------- -------- -------- -------- NET ASSET VALUE AT END OF PERIOD......................... $66.81 $76.29 $116.47 $104.15 $91.39 ======== ======== ======== ======== ======== TOTAL RETURN***.................. (22.20)% (32.92)% 13.96% 16.18% 0.36% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)................ $307,375 $434,878 $681,355 $364,541 $137,085 RATIO TO AVERAGE NET ASSETS OF: Expenses......................... 0.20%**** 0.20% 0.20% 0.20% 0.20%**** Net Investment Income............ 3.17%**** 2.37% 1.96% 1.98% 1.74%**** Portfolio Turnover Rate+......... 5% 10% 8% 7% 1%
* The Fund commenced operations on May 4, 2005. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (1) Beginning with the year ended October 31, 2006, the fund was audited by Ernest & Young LLP. The previous periods were audited by another independent registered public accounting firm. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 22 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2009 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2009, the Trust offers thirty one portfolios, each of which represents a separate series of beneficial interest in the Trust (each a "Fund" and collectively the "Funds"). The financial statements herein relate to the following two funds: Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF. Rydex S&P Equal Weight ETF commenced operations on April 24, 2003 and the Rydex Russell Top 50 ETF commenced operations on May 4, 2005. The Funds' investment objective is to provide investment results that correspond generally to the performance, before fees and expenses, of an index representing publicly traded equity securities (the "Underlying Index"). Rydex S&P Equal Weight ETF tracks the S&P 500 Equal Weight Total Return Index. Rydex Russell Top 50 ETF tracks the Russell Top 50(TM) Index. The Funds seek to achieve their objective by investing in common stocks that comprise the Underlying Index. The Funds use a "replication" strategy to track the Underlying Index. "Replication" refers to investing in substantially all of the securities in the Underlying Index in approximately the same proportions as in the Underlying Index. The Funds operate as index funds and are not actively managed. Adverse performance of a security in the Funds' portfolio will ordinarily not result in the elimination of the security from the Funds' portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures at the date of the financial statements and accompanying notes and the reported amounts of increases and decreases in net assets from operations during the reporting period. Management believes that the estimates utilized in preparing the Funds' financial statements are reasonable and prudent; however, actual results could differ from these estimates. A. SECURITY VALUATION Securities listed on a domestic securities exchange are valued based on the last sale price as of the close of regular trading hours on the New York Stock Exchange or, in the absence of recorded sales, are valued at the most recent bid price. Securities for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System ("NASDAQ") are valued at the NASDAQ Official Closing Price. The Funds invest in money market mutual funds, which are valued at their NAV. Securities, for which market quotations are not readily available, including investments that are subject to limitations as to their sale, are valued at fair value as determined in good faith by Rydex Investments, which acts as the Funds' investment advisor in accordance with procedures adopted by the Board of Trustees. In determining fair value, consideration is given to market conditions, relative benchmarks and other financial data. B. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from portfolio fund transactions are calculated on the identified cost basis. Dividend income is recorded on the ex- dividend date, net of foreign tax withholdings. Interest income is recorded on the accrual basis. C. REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements with financial institutions. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed-upon price. The repurchase price reflects an agreed-upon interest rate during the time the Fund's money is invested in the security. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. The Funds follow certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by Rydex Investments. In addition, the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, the Funds will seek to liquidate such collateral. However, the exercising of the Funds' right to liquidate such collateral could SEMI-ANNUAL REPORT 23 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase price, the Funds could suffer a loss. It is the current policy of the Funds not to invest in repurchase agreements that do not mature within seven days if any such investment, together with any other illiquid assets held by the Funds, amounts to more than 15% of the Funds' net assets. The investments of the Funds in repurchase agreements, at times, may be substantial when, in the view of Rydex Investments, liquidity or other considerations so warrant. For the six months ended April 30, 2009, the Funds had not engaged in repurchase agreement transactions. D. FEDERAL INCOME TAXES The Funds' policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of the taxable income and capital gains, if any, to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. 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 was 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 in- kind redemptions, income reclassifications from real estate investment trusts ("REITs") and losses deferred due to wash sales. For the six months ended April 30, 2009, the Funds realized net capital gains resulting from in-kind redemptions and other transactions. Because gains from in-kind redemptions are not-taxable to the Funds, and are not distributed to existing Fund shareholders, the gains are reclassified from accumulated net realized gains to paid-in-capital at the end of the Funds' tax year. These reclassifications have no effect on net assets or net asset value per share. The in-kind net capital gains for the period ended April 30, 2009 are disclosed in the Fund's Statement of Operations. At April 30, 2009, the identified cost of investments in securities owned by each Fund for federal income tax purposes and the gross unrealized appreciation and depreciation were as follows:
GROSS GROSS IDENTIFIED UNREALIZED UNREALIZED NET UNREALIZED COST APPRECIATION DEPRECIATION DEPRECIATION -------------- ------------ ------------- -------------- Rydex S&P Equal Weight ETF.................... $1,263,530,456 $11,604,723 $(385,649,739) $(374,045,016) Rydex Russell Top 50 ETF...................... 492,085,002 -- (184,150,408) (184,150,408)
E. FAIR VALUE MEASUREMENT Effective November 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 an 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 Funds' 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 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- The following table summarizes the inputs used to value the Funds' net assets as of April 30, 2009:
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 Rydex S&P Equal Weight ETF.................... $889,485,440 $ -- $ -- $ -- $ -- $ -- $889,485,440 Rydex Russell Top 50 ETF.................... 307,934,594 -- -- -- -- -- 307,934,594
F. DIVIDENDS AND DISTRIBUTIONS Distributions of net investment income and net realized capital gains, if any, are declared at least annually and recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles. G. RISK AND UNCERTAINTIES The Trust invests in various investments which are exposed to risk, such as market risk. Due to the level of risk associated with certain investments it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect amounts reported in future financial statements. The Rydex Russell Top 50 ETF is a non-diversified fund, subjecting it to a greater risk than a fund that is diversified. H. NEW ACCOUNTING PRONOUNCEMENTS In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds' financial statement disclosures. In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly" ("FAS 157-4"), which provides additional guidance when the volume and level of activity for the asset or liability measured at fair value have significantly decreased. Additionally, FAS 157-4 amends FASB Statement No. 157, Fair Value Measurements, expanding disclosure requirements by reporting entities surrounding the major categories of assets and liabilities carried at fair value. FAS 157-4 is effective for interim and annual periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FAS 157- 4 will have on the Funds' financial statement disclosures. In May 2009, FASB issued FASB Staff Position FSP FAS 165, "Subsequent Events" ("FAS 165"), which provides additional guidance with respect to financial reporting of subsequent events, specifically; the period covered by subsequent events, the circumstance under which subsequent events will be recognized and the disclosure an entity will make about events or transactions that occur after balance sheet date. FAS 165 is effective for interim and annual periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FAS 165 will have on the Funds' financial statement disclosures. 3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES Rydex Investments determines the composition of the portfolio of securities that must be delivered in exchange for the issuance of Creation Units and periodically adjusts the composition of the portfolio of the Funds to conform to changes in the composition of the relevant index. For these services, Rydex Investments receives an advisory fee at the annual rate shown below of the average daily net assets of each Fund.
ADVISORY FEE ------------ Rydex S&P Equal Weight ETF........................................... 0.40% Rydex Russell Top 50 ETF............................................. 0.20%
Rydex Investments pays all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except: interest, taxes, distribution fees or expenses and extraordinary expenses. Under an Administration Agreement, State Street Bank and Trust Company (the "Administrator") provides various administrative and accounting services for the maintenance and operations of the Funds. Under a Custodian Agreement with the Trust, the Administrator maintains cash, securities and other assets of the Trust and the Funds in separate accounts for each fund, keeps all necessary accounts and records, and provides other services. The Administrator is required, upon the order of the Trust, to deliver securities held by the SEMI-ANNUAL REPORT 25 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- Custodian and to make payments for securities purchased by the Trust for the Funds. Pursuant to a Transfer Agency and Service Agreement with the Trust, the Administrator acts as a transfer agent for the Trust's authorized and issued shares of beneficial interest, and as dividend disbursing agent of the Trust. Rydex Investments compensates the Administrator directly for the foregoing services. The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to pay distribution fees to Rydex Distributors, Inc. (the "Distributor") and other firms that provide distribution services ("Service Providers"). If a Service Provider provides distribution services, the Funds 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 will, in turn, pay the Service Provider out of its fees. No such fee is currently charged to the Funds. 4. CAPITAL At April 30, 2009, there were an unlimited number of no par value shares of beneficial interest authorized. There is a minimum transaction fee per transaction to those persons purchasing or redeeming Creation Units. An additional charge of up to three times the standard transaction fee may be imposed for purchases and redemptions effected outside the National Securities Clearing Corporation usual clearing process or for cash. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the net asset value per unit of the Fund on the transaction date. Transaction fees are not charged to or paid by the Fund. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex S&P Equal Weight ETF......................................... $2,000 Rydex Russell Top 50 ETF........................................... 500
5. INVESTMENT TRANSACTIONS For the six months ended April 30, 2009 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ------------ Rydex S&P Equal Weight ETF.................................. $329,975,091 $261,008,759 Rydex Russell Top 50 ETF.................................... 176,882,839 232,624,971
Purchases and sales of investment securities (excluding short-term investments, U.S. government and government agency obligations) for the Funds were as follows:
PURCHASES SALES ------------ ------------ Rydex S&P Equal Weight ETF.................................. $162,132,794 $160,541,745 Rydex Russell Top 50 ETF.................................... 19,018,454 18,075,461
There were no purchases or sales of U.S. government or government agency obligations for the six months ended April 30, 2009. 26 SUPPLEMENTAL INFORMATION (Unaudited) -------------------------------------------------------------------------------- PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 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 for portfolio securities, if applicable, during the most recent 12-month period ended September 30, 2008 is also available, without charge and upon request, by (i) calling 1-800-820-0888; or accessing the Trust's Form N-PX 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 Trust's 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. SEMI-ANNUAL REPORT 27 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 FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ---------------------- ---------------- CARL G. VERBONCOEUR* Rydex Series 152 Trustee, President Funds - 2004 (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 2009); Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2009). --------------------- MICHAEL P. BYRUM* Rydex Series 152 Trustee, Vice President Funds - 2005 and Secretary (1970) Rydex Variable Trust - 2005 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 FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ---------------------- ---------------- JOHN O. DEMARET Rydex Series 152 Trustee, Chairman of Funds - 1997 the Board (1940) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------------- COREY A. COLEHOUR Rydex Series 152 Trustee (1945) Funds - 1993 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, registered investment advisor (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment advisor (1985 to 2005) --------------------- J. KENNETH DALTON Rydex Series 152 Trustee (1941) Funds - 1995 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 152 Trustee (1940) Funds - 2005 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 152 Trustee (1960) Funds - 2005 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 152 Trustee (1942) Funds - 1997 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 152 Trustee (1944) Funds - 1993 Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine ---------------------------------------------------------------------------------------
28 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded) -------------------------------------------------------------------------------- EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS YEAR OF BIRTH DURING PAST FIVE YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) 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 Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Variable Trust, and Rydex (1966) 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 of Rydex Series Assistant Treasurer (1966) 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) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) 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 the Rydex Investments. (RYDEX | SGI(SM) LOGO) 9601 Blackwell Road - Suite 500 - Rockville, MD 20850 www.rydex-sgi.com - 800.820.0888 ETF1-SEMI-0409X1009 APRIL 30, 2009 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF RYDEX S&P MIDCAP 400 PURE VALUE ETF RYDEX S&P MIDCAP 400 PURE GROWTH ETF RYDEX S&P SMALLCAP 600 PURE VALUE ETF RYDEX S&P SMALLCAP 600 PURE GROWTH ETF RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF RYDEX S&P EQUAL WEIGHT ENERGY ETF RYDEX S&P EQUAL WEIGHT FINANCIALS ETF RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF RYDEX S&P EQUAL WEIGHT MATERIALS ETF RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF RYDEX S&P EQUAL WEIGHT UTILITIES ETF (RYDEX | SGI(SM) LOGO) SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS............................................... 2 FEES AND EXPENSES........................................................ 4 PREMIUM AND DISCOUNT INFORMATION......................................... 5 PORTFOLIO SUMMARY........................................................ 8 SCHEDULES OF INVESTMENTS................................................. 23 STATEMENTS OF ASSETS AND LIABILITIES..................................... 46 STATEMENTS OF OPERATIONS................................................. 50 STATEMENTS OF CHANGES IN NET ASSETS...................................... 54 FINANCIAL HIGHLIGHTS..................................................... 62 NOTES TO FINANCIAL STATEMENTS............................................ 77 SUPPLEMENTAL INFORMATION................................................. 83 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS............................ 84
2 LETTER TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- DEAR SHAREHOLDER, Last year was a difficult one for many as unemployment increased, housing values decreased and the impact of an economic slowdown reverberated in stock markets around the world. As we enter a new market environment in which investors, regulators and legislators have a dramatically reduced tolerance for risk and a greater demand for transparency, investment professionals are increasingly turning to exchange traded funds (ETFs). Due to their convenience, transparency and ability to provide access to difficult-to-reach areas of the market, ETFs can play an important role in investor portfolios. Needless to say, Rydex is a proud participant in the ETF space with $4 billion in ETF assets and more than 40 exchange traded products. Growing Industry Influence. More investment advisors are gravitating to ETFs for their flexibility, transparency and lower expense ratios. In fact, nearly all of the advisors (83%) who took part in the Rydex AdvisorBenchmarking(TM) November 2008 Survey believe that ETFs will be their primary investment vehicle in 2009. While ETF assets have fallen 12.9% over the past 12 months to $495B from $569B, the number of ETF products in the market actually climbed 16% -- with greatest growth in global and international ETFs. According to the Investment Company Institute, there are now more than 719 ETFs in this category versus 614 a year ago -- a notable 41% increase. Some industry experts even see ETFs' popularity encroaching on sacred mutual fund territory. In April, Lipper reported that "Sales of new ETFs appear to be replacing sales of new mutual funds over the past several years. ETF launches now exceed 30% of all new (fund) products." Unprecedented Market Conditions. The financial crisis that unfolded earlier this year affected nearly every conceivable asset class, resulting in huge declines in wealth -- regardless of how investors had structured their portfolios. Other than treasury bills and the U.S. dollar, no investment class was spared the widespread panic that washed over the world's financial markets. In the U.S. alone, the major stock market averages lost more than 20% of their value as the entire financial system seized up and choked as the engine of any economy -- bank lending -- stalled out. The resulting crash in global stock markets was as steep as anything we witnessed since the historic stock market crash of 1929. Huge financial dominoes began to fall as Merrill Lynch, Morgan Stanley, Goldman Sachs and Lehman Brothers collapsed, merged with or were reborn as commercial banks. Among other things, the crisis showed us that the Wall Street formula of highly leveraged balance sheets, coupled with the need to access working capital on a daily basis, proved to be lethal when backed by seemingly worthless assets. And as the willingness to lend disappeared, so did Wall Street's daily lifeline. Historic Government Intervention. September 2008 proved to be a historic month for unprecedented government intervention in the equity markets. On September 18, the U.S. Treasury announced the establishment of a temporary guarantee program for money market mutual funds after the Reserve Primary Fund "broke the buck" -- causing a massive exodus from money market mutual funds. The next day, on September 19, the Securities and Exchange Commission (SEC) issued a temporary ban prohibiting the short sales of certain financial securities. We complied with the SEC action by suspending trading of the Rydex Inverse 2x S&P Select Sector Financial ETF until the ban was lifted on October 8, 2008. The month of September also saw the takeover of Fannie Mae, Freddie Mac and AIG, the seizure of IndyMac Bank and Washington Mutual, which pointed to a near takeover of the global financial system by the government. In this history-making period, government at all levels moved with unprecedented speed, scope and coordination to save the financial system and with it the global economy. This culminated with a $700 billion plan put forward by the U.S. Treasury to essentially buy up all the bad mortgage assets clogging the financial system. Newly sworn-in government officials committed $12 trillion to programs designed to offset credit and sub-prime mortgage-related issues that were negatively impacting the financial services industry. This historic government intervention kicked into high gear during the fall when Congress established The Emergency Economic Stabilization Act of 2008 (EESA) in an effort to help strengthen the U.S. economy. Primarily, the act authorized the Troubled Assets Relief Program (TARP), which was originally structured to purchase troubled assets from ailing banks but quickly morphed into an effort to recapitalize the banking industry. Signs of a Recovery. The question at the forefront of everyone's mind still remains: Will it all work? While it looks like the Dow Jones Industrial Average finally found its bottom of 6547.05 on March 9, investors still remain cautious. The new administration has rightly made the economy its top priority and we are starting to see some proverbial light at the end of the tunnel. All major U.S. indices ended April in positive territory with the NASDAQ Composite posting a 12.35% gain, the S&P 500 jumping to 9.39% and the Dow Industrials closing out the month with a respectable 7.35% gain. In fact, April proved to be a solid month of recovery as the NASDAQ reported its best April percentage gain since 2001 (when it gained 14.99%), the S&P posted its best gain since 1938 (when it gained 15.06%) and the Dow had its best monthly gain since last March, when it rose 7.77%. On the housing front, home-sales figures in recent weeks have shown a slower pace of decline and the slide in property prices appears to have stabilized. Former Federal Reserve Chairman Alan Greenspan even went on record in early May stating that the U.S. housing market may be on the verge of a recovery and that it's "very easy to see" the financial markets continuing to improve. While there's still SEMI-ANNUAL REPORT 3 -------------------------------------------------------------------------------- a long way to go to repair the carnage we experienced over the past six months, I'm optimistic that we can -- and will -- endure. We appreciate the trust that you have placed in our firm's quality and integrity by investing with us. It is our goal to continue to offer you a wide variety of ETFs to help you meet your financial goals. Sincerely, -s- MIKE BYRUM, CFA Mike Byrum, CFA President and Chief Investment Officer Read the fund's prospectus carefully before investing. It contains the fund's investment objectives, risks, charges, expenses and other information. Obtain a prospectus at rydexinvestments.com or call 800.258.4332. The opinions and forecasts expressed are those of Security Global Investors as of June 1, 2009, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or strategy. AdvisorBenchmarking.com and the Rydex PracticeValue program are services of Advisor Research Center, Inc., an affiliate of Rydex Investments. Advisor Research Center, Inc., and its affiliates make no warranties, expressed or implied, as to results to be obtained from the use of information provided by the Rydex PracticeValue program and/or AdvisorBenchmarking.com, and Advisor Research Center, Inc., expressly disclaims all warranties of merchantability or fitness for a particular purpose of use with respect thereto. While Advisor Research Center, Inc., believes the information to be reliable, Advisor Research Center, Inc., and its affiliates shall not be liable for any claims or losses of any nature in connection with the information contained in this publication. 4 FEES AND EXPENSES (Unaudited) -------------------------------------------------------------------------------- SHAREHOLDER EXPENSE EXAMPLE As a shareholder of the Rydex ETF Trust, you incur transaction costs such as creation and redemption fees or brokerage charges, and ongoing costs including advisory fees and, if applicable, distribution fees. All other Trust expenses are paid by the advisor. This Example is intended to help you understand your 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 example in the table is based on an investment of $1,000 invested on October 31, 2008 and held for the six months ended April 30, 2009. ACTUAL EXPENSES The first table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first table under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses attributable to your investment during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation and redemption fees, or brokerage charges. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID ACCOUNT ACCOUNT DURING EXPENSE VALUE VALUE SIX-MONTH PERIOD* RATIO 10/31/08 4/30/09 10/31/08 TO 4/30/09 ------- --------- --------- ------------------- ACTUAL Rydex S&P 500 Pure Value ETF............... 0.34% $1,000.00 $ 875.60 $1.63 Rydex S&P 500 Pure Growth ETF.............. 0.35% 1,000.00 1,028.40 1.76 Rydex S&P MidCap 400 Pure Value ETF........ 0.35% 1,000.00 937.60 1.68 Rydex S&P MidCap 400 Pure Growth ETF....... 0.34% 1,000.00 1,084.50 1.81 Rydex S&P SmallCap 600 Pure Value ETF...... 0.35% 1,000.00 942.20 1.69 Rydex S&P SmallCap 600 Pure Growth ETF..... 0.35% 1,000.00 996.60 1.73 Rydex S&P Equal Weight Consumer Discretionary ETF....................... 0.50% 1,000.00 1,092.00 2.59 Rydex S&P Equal Weight Consumer Staples ETF..................................... 0.49% 1,000.00 983.10 2.46 Rydex S&P Equal Weight Energy ETF.......... 0.49% 1,000.00 936.70 2.40 Rydex S&P Equal Weight Financials ETF...... 0.50% 1,000.00 771.20 2.20 Rydex S&P Equal Weight Health Care ETF..... 0.50% 1,000.00 990.20 2.47 Rydex S&P Equal Weight Industrials ETF..... 0.49% 1,000.00 966.00 2.44 Rydex S&P Equal Weight Materials ETF....... 0.49% 1,000.00 1,102.30 2.61 Rydex S&P Equal Weight Technology ETF...... 0.49% 1,000.00 1,103.10 2.61 Rydex S&P Equal Weight Utilities ETF....... 0.50% 1,000.00 944.90 2.41 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P 500 Pure Value ETF............... 0.34% 1,000.00 1,023.06 1.76 Rydex S&P 500 Pure Growth ETF.............. 0.35% 1,000.00 1,023.06 1.76 Rydex S&P MidCap 400 Pure Value ETF........ 0.35% 1,000.00 1,023.06 1.76 Rydex S&P MidCap 400 Pure Growth ETF....... 0.34% 1,000.00 1,023.06 1.76 Rydex S&P SmallCap 600 Pure Value ETF...... 0.35% 1,000.00 1,023.06 1.76 Rydex S&P SmallCap 600 Pure Growth ETF..... 0.35% 1,000.00 1,023.06 1.76 Rydex S&P Equal Weight Consumer Discretionary ETF....................... 0.50% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Consumer Staples ETF..................................... 0.49% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Energy ETF.......... 0.49% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Financials ETF...... 0.50% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Health Care ETF..... 0.50% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Industrials ETF..... 0.49% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Materials ETF....... 0.49% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Technology ETF...... 0.49% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Utilities ETF**..... 0.50% 1,000.00 1,022.32 2.51
-------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period). SEMI-ANNUAL REPORT 5 PREMIUM AND DISCOUNT INFORMATION (Unaudited) -------------------------------------------------------------------------------- The tables that follow present information about the differences between the daily market price on secondary markets for shares of the Funds and each Fund's NAV. Net Asset Value, or "NAV," is the price per share at which a Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The "Market Price" of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the Exchange on which the Fund is listed for trading, as of the time the Fund's NAV is calculated. A Fund's Market Price may be at, above or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply of and demand for shares of the Funds. Premiums or discounts are the differences (generally expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a positive percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a negative percentage of the NAV. The following information shows the frequency distribution of premiums and discounts for the Funds. The information shown for each Fund is for the six months ended April 30, 2009. Each line in the table shows the number of trading days in which the Funds traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by the table. All data presented here represents past performance, which cannot be used to predict future results. 6 PREMIUM AND DISCOUNT INFORMATION (Unaudited) (continued) --------------------------------------------------------------------------------
NUMBER OF DAYS ------------------------------------------------------------- RYDEX RYDEX RYDEX RYDEX RYDEX RYDEX S&P S&P S&P 500 S&P 500 S&P S&P SMALLCAP SMALLCAP PURE PURE MIDCAP 400 MIDCAP 400 600 PURE 600 PURE VALUE GROWTH PURE VALUE PURE GROWTH VALUE GROWTH ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ------- ------- ---------- ----------- -------- -------- Greater than 8%............................ 0 0 0 0 0 0 Between 3.01% and 8%....................... 2 2 5 0 4 4 Between 1.01% and 3%....................... 31 16 20 10 20 36 Between .51% and 1%........................ 36 24 29 22 38 34 Between .26% and .5%....................... 47 54 50 32 74 52 Between .25% and 0%........................ 308 292 241 274 251 210 Between -0.01% and -0.25%.................. 258 310 303 325 255 291 Between -0.26% and -0.5%................... 56 47 60 81 61 79 Between -0.51% and -1%..................... 33 24 31 34 51 51 Between -1.01% and -3%..................... 24 26 46 19 38 36 Between -3.01% and -8%..................... 3 3 13 1 6 5 Less than 8%............................... 0 0 0 0 0 0 Total...................................... 798 798 798 798 798 798
PERCENTAGE OF TOTAL DAYS ----------------------------------------------------------------- RYDEX RYDEX RYDEX RYDEX RYDEX RYDEX S&P S&P S&P S&P S&P 500 S&P 500 MIDCAP 400 MIDCAP 400 SMALLCAP SMALLCAP PURE PURE PURE PURE 600 PURE 600 PURE VALUE GROWTH VALUE GROWTH VALUE GROWTH ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ------- ------- ---------- ---------- -------- -------- Greater than 8%............................. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Between 3.01% and 8%........................ 0.25% 0.25% 0.63% 0.00% 0.50% 0.50% Between 1.01% and 3%........................ 3.88% 2.01% 2.51% 1.25% 2.51% 4.51% Between .51% and 1%......................... 4.51% 3.01% 3.63% 2.76% 4.76% 4.26% Between .26% and .5%........................ 5.89% 6.77% 6.27% 4.01% 9.27% 6.52% Between .25% and 0%......................... 38.60% 36.59% 30.20% 34.34% 31.45% 26.32% Between -0.01% and -0.25%................... 32.33% 38.85% 37.97% 40.73% 31.95% 36.47% Between -0.26% and -0.5%.................... 7.02% 5.89% 7.52% 10.15% 7.64% 9.90% Between -0.51% and -1%...................... 4.14% 3.01% 3.88% 4.26% 6.39% 6.39% Between -1.01% and -3%...................... 3.01% 3.26% 5.76% 2.38% 4.76% 4.51% Between -3.01% and -8%...................... 0.38% 0.38% 1.63% 0.13% 0.75% 0.63% Less than 8%................................ 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total....................................... 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
SEMI-ANNUAL REPORT 7 PREMIUM AND DISCOUNT INFORMATION (Unaudited) (concluded) --------------------------------------------------------------------------------
NUMBER OF DAYS --------------------------------------------------------------------------------------------------- RYDEX RYDEX S&P EQUAL S&P EQUAL RYDEX RYDEX RYDEX RYDEX RYDEX RYDEX RYDEX WEIGHT WEIGHT S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL CONSUMER CONSUMER WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT DISCRETIONARY STAPLES ENERGY FINANCIALS HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY UTILITIES ETF ETF ETF ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ------------- --------- --------- ---------- ----------- ----------- --------- ---------- --------- Greater than 10%...... 0 0 0 1 0 0 0 0 0 Between 8.01% and 10%................. 1 0 0 0 0 0 0 0 0 Between 3.01% and 8%.. 7 0 7 12 0 5 3 6 2 Between 1.01% and 3%.. 16 16 24 46 6 36 35 23 23 Between .51% and 1%... 24 29 43 41 25 29 33 30 30 Between .26% and .5%.. 24 38 48 34 42 38 41 38 43 Between .25% and 0%... 192 211 153 149 244 190 177 198 183 Between -0.01% and -0.25%.............. 257 237 193 195 216 226 200 195 225 Between -0.26% and -0.5%............... 56 47 55 40 58 37 55 57 55 Between -0.51% and -1%................. 32 36 53 47 30 40 39 46 44 Between -1.01% and -3%................. 11 13 39 44 6 23 39 32 17 Between -3.01% and -8%................. 6 0 12 16 0 3 5 2 5 Between 8.01% and 10%................. 1 0 0 1 0 0 0 0 0 Less than 10%......... 0 0 0 1 0 0 0 0 0 Total................. 627 627 627 627 627 627 627 627 627
PERCENTAGE OF TOTAL DAYS --------------------------------------------------------------------------------------------------- RYDEX RYDEX S&P EQUAL S&P EQUAL RYDEX RYDEX RYDEX RYDEX RYDEX RYDEX RYDEX WEIGHT WEIGHT S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL S&P EQUAL CONSUMER CONSUMER WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT DISCRETIONARY STAPLES ENERGY FINANCIALS HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY UTILITIES ETF ETF ETF ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ------------- --------- --------- ---------- ----------- ----------- --------- ---------- --------- Greater than 10%........ 0.00% 0.00% 0.00% 0.16% 0.00% 0.00% 0.00% 0.00% 0.00% Between 8.01% and 10%... 0.16% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Between 3.01% and 8%.... 1.12% 0.00% 1.12% 1.91% 0.00% 0.80% 0.48% 0.96% 0.32% Between 1.01% and 3%.... 2.55% 2.55% 3.83% 7.34% 0.96% 5.74% 5.58% 3.67% 3.67% Between .51% and 1%..... 3.83% 4.63% 6.86% 6.54% 3.99% 4.63% 5.26% 4.78% 4.78% Between .26% and .5%.... 3.83% 6.06% 7.66% 5.42% 6.70% 6.06% 6.54% 6.06% 6.86% Between .25% and 0%..... 30.62% 33.65% 24.40% 23.76% 38.92% 30.30% 28.23% 31.58% 29.19% Between -0.01% and -0.25%................ 40.99% 37.80% 30.78% 31.10% 34.45% 36.04% 31.90% 31.10% 35.89% Between -0.26% and -0.5%................. 8.93% 7.50% 8.77% 6.38% 9.25% 5.90% 8.77% 9.09% 8.77% Between -0.51% and -1%.. 5.10% 5.74% 8.45% 7.50% 4.78% 6.38% 6.22% 7.34% 7.02% Between -1.01% and -3%.. 1.75% 2.07% 6.22% 7.02% 0.96% 3.67% 6.22% 5.10% 2.71% Between -3.01% and -8%.. 0.96% 0.00% 1.91% 2.55% 0.00% 0.48% 0.80% 0.32% 0.80% Between 8.01% and 10%... 0.16% 0.00% 0.00% 0.16% 0.00% 0.00% 0.00% 0.00% 0.00% Less than 10%........... 0.00% 0.00% 0.00% 0.16% 0.00% 0.00% 0.00% 0.00% 0.00% Total................... 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
8 RYDEX S&P 500 PURE VALUE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ XL CAPITAL, LTD. -- CLASS A 5.95% SUPERVALU, INC. 2.78% TESORO CORP. 2.65% PROLOGIS 2.47% MACY'S, INC. 2.44% WYNDHAM WORLDWIDE CORP. 2.26% FORD MOTOR CO. 2.25% AMERICAN INTERNATIONAL GROUP, INC. 1.88% OFFICE DEPOT, INC. 1.88% MORGAN STANLEY 1.84% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 32.42 Consumer Discretionary 23.70 Materials 8.55 Utilities 7.59 Consumer Staples 6.98 Information Technology 4.47 Energy 4.39 Industrials 4.31 Telecommunication Services 4.31 Health Care 3.28
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 9 RYDEX S&P 500 PURE GROWTH ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SEARS HOLDINGS CORP. 1.97% FREEPORT-MCMORAN COPPER & GOLD, INC. 1.96% INTUITIVE SURGICAL, INC. 1.54% AKAMAI TECHNOLOGIES, INC. 1.48% CB RICHARD ELLIS GROUP, INC. -- CLASS A 1.46% COGNIZANT TECHNOLOGY SOLUTIONS CORP. -- CLASS A 1.40% SANDISK CORP. 1.37% AGILENT TECHNOLOGIES, INC. 1.36% GOLDMAN SACHS GROUP, INC. 1.35% SALESFORCE.COM, INC. 1.35% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 30.28 Energy 15.90 Consumer Discretionary 14.86 Health Care 12.23 Industrials 9.11 Financials 7.61 Materials 5.17 Consumer Staples 4.39 Utilities 0.45
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 10 RYDEX S&P MIDCAP 400 PURE VALUE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ TEMPLE-INLAND, INC. 7.23% ASHLAND, INC. 4.89% LOUISIANA-PACIFIC CORP. 3.23% WILLIAMS-SONOMA, INC. 3.08% OSHKOSH CORP. 3.04% FOOT LOCKER, INC. 2.66% BARNES & NOBLE, INC. 2.54% BRINKER INTERNATIONAL, INC. 2.35% TECH DATA CORP. 2.31% BOYD GAMING CORP. 1.96% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 26.64 Consumer Discretionary 21.07 Materials 19.46 Industrials 11.52 Information Technology 9.93 Utilities 5.24 Health Care 3.56 Consumer Staples 1.88 Energy 0.70
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 11 RYDEX S&P MIDCAP 400 PURE GROWTH ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ AEROPOSTALE, INC. 2.41% COMMSCOPE, INC. 2.22% J. CREW GROUP, INC. 2.13% SEPRACOR, INC. 2.06% SOTHEBY'S 2.05% HANSEN NATURAL CORP. 1.89% WESTERN DIGITAL CORP. 1.81% LAM RESEARCH CORP. 1.67% CHICO'S FAS, INC. 1.62% UNITED THERAPEUTICS CORP. 1.56% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 27.08 Information Technology 18.40 Industrials 17.29 Health Care 11.35 Energy 11.08 Financials 6.42 Materials 4.78 Consumer Staples 3.60
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 12 Rydex S&P SmallCap 600 Pure Value ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ RUBY TUESDAY, INC. 6.43% O'CHARLEYS, INC. 4.61% STEIN MART, INC. 3.75% NATIONAL FINANCIAL PARTNERS CORP. 3.03% GEVITY HR, INC. 2.86% BRUNSWICK CORP. 2.59% GROUP 1 AUTOMOTIVE, INC. 2.40% SYNNEX CORP. 2.40% FLAGSTAR BANCORP, INC. 2.37% SONIC AUTOMOTIVE, INC. -- CLASS A 2.16% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 50.46 Financials 22.40 Information Technology 13.70 Industrials 7.63 Materials 2.76 Consumer Staples 1.54 Utilities 1.05 Telecommunication Services 0.46
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 13 Rydex S&P SmallCap 600 Pure Growth ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ RUTH'S HOSPITALITY GROUP, INC. 2.36% CROCS, INC. 1.76% KULICKE & SOFFA INDUSTRIES, INC. 1.57% WRIGHT EXPRESS CORP. 1.47% LCA-VISION, INC. 1.45% MANNATECH, INC. 1.45% TRADESTATION GROUP, INC. 1.43% INTEVAC, INC. 1.43% TRUE RELIGION APPAREL, INC. 1.40% PERICOM SEMICONDUCTOR CORP. 1.21% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 31.16 Consumer Discretionary 22.44 Health Care 12.28 Industrials 9.32 Energy 8.89 Financials 8.65 Consumer Staples 4.15 Materials 3.11
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 14 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ WYNDHAM WORLDWIDE CORP. 2.56% FORD MOTOR CO. 1.94% WYNN RESORTS, LTD. 1.70% OFFICE DEPOT, INC. 1.67% GOODYEAR TIRE & RUBBER CO. 1.66% GANNETT CO., INC. 1.62% J.C. PENNEY CO., INC. 1.58% HARLEY-DAVIDSON, INC. 1.54% EXPEDIA, INC. 1.53% WHIRLPOOL CORP. 1.53% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Specialty Retail 19.74 Media 19.69 Household Durables 16.94 Hotels, Restaurants & Leisure 13.53 Multiline Retail 10.19 Textiles, Apparel & Luxury Goods 4.68 Automobiles 4.02 Auto Components 3.16 Leisure Equipment & Products 2.94 Internet & Catalog Retail 2.56 Diversified Consumer Services 1.47 Distributors 1.08
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 15 RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ PEPSI BOTTLING GROUP, INC. 3.45% COCA-COLA ENTERPRISES, INC. 3.21% DR PEPPER SNAPPLE GROUP, INC. 3.14% WALGREEN CO. 2.89% WHOLE FOODS MARKET, INC. 2.82% ESTEE LAUDER COS., INC. -- CLASS A 2.78% AVON PRODUCTS, INC. 2.70% CONAGRA FOODS, INC. 2.70% CVS CAREMARK CORP. 2.63% BROWN-FORMAN CORP. -- CLASS B 2.61% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Food Products 32.37 Food & Staples Retailing 22.14 Beverages 21.52 Household Products 9.46 Tobacco 9.00 Personal Products 5.51
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 16 RYDEX S&P EQUAL WEIGHT ENERGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ NABORS INDUSTRIES, LTD. 3.39% MASSEY ENERGY CO. 3.22% PIONEER NATURAL RESOURCES CO. 3.20% BJ SERVICES CO. 3.12% MARATHON OIL CORP. 2.82% CABOT OIL & GAS CORP. 2.77% HALLIBURTON CO. 2.77% WILLIAMS COS., INC. 2.76% SCHLUMBERGER, LTD. 2.71% SOUTHWESTERN ENERGY CO. 2.67% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Oil, Gas & Consumable Fuels 70.33 Energy Equipment & Services 29.67
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 17 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CB RICHARD ELLIS GROUP, INC. -- CLASS A 2.79% PRINCIPAL FINANCIAL GROUP, INC. 2.07% XL CAPITAL, LTD. -- CLASS A 1.94% AMERICAN EXPRESS CO. 1.86% FIFTH THIRD BANCORP 1.84% HOST HOTELS & RESORTS, INC. 1.78% JANUS CAPITAL GROUP, INC. 1.68% LEUCADIA NATIONAL CORP. 1.57% PRUDENTIAL FINANCIAL, INC. 1.53% HUNTINGTON BANCSHARES, INC. 1.48% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Insurance 26.03 Real Estate Investment Trusts (REITs) 18.09 Capital Markets 17.15 Commercial Banks 16.71 Diversified Financial Services 11.72 Consumer Finance 5.56 Real Estate Management & Development 2.79 Thrifts & Mortgage Finance 1.95
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 18 RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ TENET HEALTHCARE CORP. 3.59% INTUITIVE SURGICAL, INC. 2.48% EXPRESS SCRIPTS, INC. 2.30% WATERS CORP. 2.28% COVENTRY HEALTH CARE, INC. 2.27% HOSPIRA, INC. 2.18% ZIMMER HOLDINGS, INC. 2.09% STRYKER CORP. 2.06% PERKINELMER, INC. 2.03% LIFE TECHNOLOGIES CORP. 2.03% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Health Care Providers & Services 32.01 Health Care Equipment & Supplies 24.46 Pharmaceuticals 22.12 Biotechnology 9.83 Life Sciences Tools & Services 9.82 Health Care Technology 1.76
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 19 RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ MONSTER WORLDWIDE, INC. 2.51% TEXTRON, INC. 2.43% R.R. DONNELLEY & SONS CO. 2.21% INGERSOLL-RAND CO.,LTD. -- CLASS A 2.10% MANITOWOC CO., INC. 1.99% CUMMINS, INC. 1.95% PARKER-HANNIFIN CORP. 1.93% ROBERT HALF INTERNATIONAL, INC. 1.93% PACCAR, INC. 1.89% ROCKWELL AUTOMATION, INC. 1.88% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Machinery 23.30 Commercial Services & Supplies 21.06 Aerospace & Defense 19.79 Road & Rail 8.07 Air Freight & Logistics 6.72 Industrial Conglomerates 5.91 Electrical Equipment 5.44 Trading Companies & Distributors 3.48 Construction & Engineering 2.75 Building Products 1.80 Airlines 1.68
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 20 RYDEX S&P EQUAL WEIGHT MATERIALS ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ DOW CHEMICAL CO. 5.47% OWENS-ILLINOIS, INC. 5.25% AK STEEL HOLDING CORP. 4.94% INTERNATIONAL PAPER CO. 4.70% PACTIV CORP. 4.64% EASTMAN CHEMICAL CO. 4.31% ALLEGHENY TECHNOLOGIES, INC. 4.18% SEALED AIR CORP. 3.88% ALCOA, INC. 3.67% MEADWESTVACO CORP. 3.66% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Chemicals 37.74 Metals & Mining 27.83 Containers & Packaging 19.34 Paper & Forest Products 11.86 Construction Materials 3.23
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 21 RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ JABIL CIRCUIT, INC. 2.15% TYCO ELECTRONICS, LTD. 1.87% CIENA CORP. 1.85% SANDISK CORP. 1.67% AUTODESK, INC. 1.62% WESTERN UNION CO. 1.58% CONVERGYS CORP. 1.58% JDS UNIPHASE CORP. 1.56% JUNIPER NETWORKS, INC. 1.56% MOTOROLA, INC. 1.53% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Semiconductors & Semiconductor Equipment 23.14 Software 18.16 Computers & Peripherals 14.66 IT Services 13.98 Communications Equipment 12.85 Electronic Equipment & Instruments 9.40 Internet Software & Services 6.52 Office Electronics 1.29
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 22 RYDEX S&P EQUAL WEIGHT UTILITIES ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SPRINT NEXTEL CORP. 2.76% CONSTELLATION ENERGY GROUP, INC. 2.70% NISOURCE, INC. 2.49% QWEST COMMUNICATIONS INTERNATIONAL, INC. 2.49% ALLEGHENY ENERGY, INC. 2.41% DTE ENERGY CO. 2.38% FPL GROUP, INC. 2.37% AES CORP. 2.36% FRONTIER COMMUNICATIONS CORP. 2.35% SEMPRA ENERGY 2.34% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Multi-Utilities 33.96 Electric Utilities 31.08 Diversified Telecommunication Services 16.16 Independent Power Producers & Energy Traders 7.34 Gas Utilities 6.40 Wireless Telecommunication Services 5.06
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 23 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.5% AEROSPACE & DEFENSE 0.4% Northrop Grumman Corp. ...... 1,150 $55,603 ----------- TOTAL AEROSPACE & DEFENSE 55,603 ----------- AUTO COMPONENTS 2.3% Goodyear Tire & Rubber Co.(The)*................. 23,150 254,419 Johnson Controls, Inc. ...... 3,610 68,626 ----------- TOTAL AUTO COMPONENTS 323,045 ----------- AUTOMOBILES 2.2% Ford Motor Co.*.............. 52,140 311,797 ----------- TOTAL AUTOMOBILES 311,797 ----------- BEVERAGES 0.8% Coca-Cola Enterprises, Inc. ..................... 6,440 109,866 ----------- TOTAL BEVERAGES 109,866 ----------- BUILDING PRODUCTS 0.7% Masco Corp. ................. 10,340 91,612 ----------- TOTAL BUILDING PRODUCTS 91,612 ----------- CAPITAL MARKETS 3.1% Ameriprise Financial, Inc. .. 2,750 72,462 Legg Mason, Inc. ............ 4,900 98,343 Morgan Stanley............... 10,770 254,603 ----------- TOTAL CAPITAL MARKETS 425,408 ----------- CHEMICALS 2.5% Air Products & Chemicals, Inc. ..................... 1,160 76,444 Dow Chemical Co.(The)........ 6,230 99,680 Du Pont (E.I.) de Nemours & Co. ...................... 2,780 77,562 Eastman Chemical Co. ........ 2,440 96,819 ----------- TOTAL CHEMICALS 350,505 ----------- COMMERCIAL BANKS 4.0% BB&T Corp. .................. 2,210 51,581 Comerica, Inc. .............. 6,690 140,356 Fifth Third Bancorp.......... 15,520 63,632 Huntington Bancshares, Inc. ..................... 14,270 39,813 KeyCorp...................... 7,850 48,278 Marshall & Ilsley Corp. ..... 8,630 49,881 Regions Financial Corp. ..... 11,320 50,827 SunTrust Banks, Inc. ........ 4,090 59,060 U.S. Bancorp................. 1,930 35,165 Zions Bancorp................ 1,780 19,455 ----------- TOTAL COMMERCIAL BANKS 558,048 ----------- COMMERCIAL SERVICES & SUPPLIES 1.2% Avery Dennison Corp. ........ 1,680 48,283 R.R. Donnelley & Sons Co. ... 10,160 118,364 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 166,647 ----------- COMPUTERS & PERIPHERALS 0.9% Sun Microsystems, Inc.*...... 13,610 124,668 ----------- TOTAL COMPUTERS & PERIPHERALS 124,668 ----------- CONSUMER FINANCE 0.3% Capital One Financial Corp. .................... 2,320 38,837 ----------- TOTAL CONSUMER FINANCE 38,837 ----------- DIVERSIFIED FINANCIAL SERVICES 2.7% Bank of America Corp. ....... 9,570 85,460 CIT Group, Inc. ............. 74,860 166,189 Citigroup, Inc. ............. 23,530 71,767 JPMorgan Chase & Co. ........ 1,690 55,770 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 379,186 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 4.3% AT&T, Inc. .................. 1,820 46,628 CenturyTel, Inc. ............ 4,270 115,931 Embarq Corp. ................ 2,730 99,809 Frontier Communications Corp. .................... 9,430 67,047 Qwest Communications International, Inc. ...... 35,860 139,495 Verizon Communications, Inc. ..................... 1,600 48,544 Windstream Corp. ............ 9,260 76,858 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 594,312 ----------- ELECTRIC UTILITIES 2.3% American Electric Power Co., Inc. ..................... 1,670 44,055 Duke Energy Corp. ........... 4,480 61,869 Pepco Holdings, Inc. ........ 5,370 64,171 Pinnacle West Capital Corp. .................... 3,250 88,985 Progress Energy, Inc. ....... 1,690 57,663 ----------- TOTAL ELECTRIC UTILITIES 316,743 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.5% Jabil Circuit, Inc. ......... 24,820 201,042 Molex, Inc. ................. 3,350 55,844 Tyco Electronics, Ltd. ...... 5,140 89,642 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 346,528 ----------- FOOD & STAPLES RETAILING 2.8% SUPERVALU, Inc. ............. 23,570 385,370 ----------- TOTAL FOOD & STAPLES RETAILING 385,370 ----------- FOOD PRODUCTS 1.6% ConAgra Foods, Inc. ......... 2,880 50,976 Tyson Foods, Inc. -- Class A......................... 16,120 169,905 ----------- TOTAL FOOD PRODUCTS 220,881 ----------- HEALTH CARE PROVIDERS & SERVICES 2.9% AmerisourceBergen Corp. ..... 4,300 144,652 McKesson Corp. .............. 1,350 49,950 Tenet Healthcare Corp.*...... 90,200 202,950 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 397,552 ----------- HOTELS, RESTAURANTS & LEISURE 4.7% Carnival Corp. .............. 4,100 110,208 Darden Restaurants, Inc. .... 1,610 59,522 International Game Technology................ 8,180 101,023 Starwood Hotels & Resorts Worldwide, Inc. .......... 3,580 74,679 Wyndham Worldwide Corp. ..... 26,750 312,440 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 657,872 ----------- HOUSEHOLD DURABLES 2.4% Fortune Brands, Inc. ........ 1,150 45,206 Leggett & Platt, Inc. ....... 5,460 78,406 Newell Rubbermaid, Inc. ..... 7,480 78,166 Whirlpool Corp. ............. 2,780 125,545 ----------- TOTAL HOUSEHOLD DURABLES 327,323 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.1% Constellation Energy Group, Inc. ..................... 6,150 148,092 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 148,092 -----------
See Notes to Financial Statements. 24 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) INDUSTRIAL CONGLOMERATES 1.0% General Electric Co. ........ 5,120 $64,768 Textron, Inc. ............... 7,000 75,110 ----------- TOTAL INDUSTRIAL CONGLOMERATES 139,878 ----------- INSURANCE 14.3% Allstate Corp. .............. 3,840 89,587 American International Group, Inc. ..................... 188,700 260,406 Assurant, Inc. .............. 1,830 44,725 Cincinnati Financial Corp. .. 2,050 49,098 Genworth Financial, Inc. -- Class A........... 95,870 226,253 Hartford Financial Services Group, Inc. .............. 20,300 232,841 Lincoln National Corp. ...... 10,630 119,481 Principal Financial Group, Inc. ..................... 3,360 54,902 Prudential Financial, Inc. .. 3,010 86,929 XL Capital, Ltd. -- Class A.. 86,650 824,042 ----------- TOTAL INSURANCE 1,988,264 ----------- LEISURE EQUIPMENT & PRODUCTS 0.8% Eastman Kodak Co. ........... 22,230 67,801 Mattel, Inc. ................ 2,960 44,282 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 112,083 ----------- MACHINERY 0.7% Ingersoll-Rand Co., Ltd. -- Class A........... 4,680 101,884 ----------- TOTAL MACHINERY 101,884 ----------- MEDIA 3.7% CBS Corp. -- Class B......... 30,370 213,805 Gannett Co., Inc. ........... 33,240 129,968 Meredith Corp. .............. 4,520 113,362 Time Warner, Inc. ........... 2,530 55,230 ----------- TOTAL MEDIA 512,365 ----------- METALS & MINING 2.6% AK Steel Holding Corp. ...... 11,620 151,176 Alcoa, Inc. ................. 14,870 134,871 United States Steel Corp. ... 2,680 71,154 ----------- TOTAL METALS & MINING 357,201 ----------- MULTI-UTILITIES 4.2% Ameren Corp. ................ 2,760 63,535 CenterPoint Energy, Inc. .... 5,360 57,030 Consolidated Edison, Inc. ... 1,550 57,552 DTE Energy Co. .............. 2,190 64,758 Integrys Energy Group, Inc. ..................... 2,060 54,405 NiSource, Inc. .............. 11,800 129,682 SCANA Corp. ................. 1,370 41,401 TECO Energy, Inc. ........... 6,230 65,976 Xcel Energy, Inc. ........... 2,580 47,575 ----------- TOTAL MULTI-UTILITIES 581,914 ----------- MULTILINE RETAIL 3.5% J.C. Penney Co., Inc. ....... 4,760 146,084 Macy's, Inc. ................ 24,730 338,307 ----------- TOTAL MULTILINE RETAIL 484,391 ----------- OIL, GAS & CONSUMABLE FUELS 4.4% Spectra Energy Corp. ........ 7,120 103,240 Tesoro Corp. ................ 24,020 366,305 Valero Energy Corp. ......... 6,820 135,309 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 604,854 ----------- PAPER & FOREST PRODUCTS 3.4% International Paper Co. ..... 13,420 169,897 MeadWestvaco Corp. .......... 13,730 215,012 Weyerhaeuser Co. ............ 2,440 86,034 ----------- TOTAL PAPER & FOREST PRODUCTS 470,943 ----------- PHARMACEUTICALS 0.4% Pfizer, Inc. ................ 4,050 54,108 ----------- TOTAL PHARMACEUTICALS 54,108 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 7.8% Apartment Investment & Management Co. -- Class A......................... 8,130 59,349 AvalonBay Communities, Inc. ..................... 720 40,903 Boston Properties, Inc. ..... 1,380 68,200 Equity Residential........... 1,970 45,093 HCP, Inc. ................... 3,390 74,411 Health Care REIT, Inc. ...... 1,950 66,437 Host Hotels & Resorts, Inc. ..................... 24,960 191,942 Kimco Realty Corp. .......... 4,860 58,417 ProLogis..................... 37,510 341,716 Simon Property Group, Inc. .. 1,260 65,016 Vornado Realty Trust......... 1,380 67,468 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,078,952 ----------- ROAD & RAIL 0.3% Ryder System, Inc. .......... 1,380 38,212 ----------- TOTAL ROAD & RAIL 38,212 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.0% Analog Devices, Inc. ........ 3,480 74,054 Microchip Technology, Inc. .. 3,080 70,840 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 144,894 ----------- SPECIALTY RETAIL 3.9% AutoNation, Inc.*............ 8,680 153,723 Limited Brands, Inc. ........ 10,970 125,277 Office Depot, Inc.*.......... 100,260 259,674 ----------- TOTAL SPECIALTY RETAIL 538,674 ----------- TOBACCO 1.8% Altria Group, Inc. .......... 6,060 98,960 Philip Morris International, Inc. ..................... 2,170 78,554 Reynolds American, Inc. ..... 1,820 69,123 ----------- TOTAL TOBACCO 246,637 ----------- TOTAL COMMON STOCKS (Cost $18,831,977) 13,785,149 ----------- SHORT TERM INVESTMENTS 0.4% SSgA Government Money Market Fund...................... 51,503 51,503 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $51,503) 51,503 ----------- TOTAL INVESTMENTS 99.9% (Cost $18,883,480) 13,836,652 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 10,081 ----------- NET ASSETS--100.0%............. $13,846,733 ------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.9% AEROSPACE & DEFENSE 1.4% Lockheed Martin Corp. ........ 2,270 $178,263 Rockwell Collins, Inc. ....... 6,470 248,125 ----------- TOTAL AEROSPACE & DEFENSE 426,388 ----------- AIR FREIGHT & LOGISTICS 1.4% C.H. Robinson Worldwide, Inc. ...................... 4,190 222,740 Expeditors International of Washington, Inc. .......... 5,970 207,219 ----------- TOTAL AIR FREIGHT & LOGISTICS 429,959 ----------- BEVERAGES 0.6% PepsiCo, Inc. ................ 3,520 175,155 ----------- TOTAL BEVERAGES 175,155 ----------- BIOTECHNOLOGY 2.1% Amgen, Inc.*.................. 3,360 162,859 Biogen Idec, Inc.*............ 3,560 172,091 Celgene Corp.*................ 7,700 328,944 ----------- TOTAL BIOTECHNOLOGY 663,894 ----------- CAPITAL MARKETS 1.8% Franklin Resources, Inc. ..... 2,480 149,990 Goldman Sachs Group, Inc.(The).................. 3,280 421,480 ----------- TOTAL CAPITAL MARKETS 571,470 ----------- CHEMICALS 0.5% Ecolab, Inc. ................. 3,930 151,502 ----------- TOTAL CHEMICALS 151,502 ----------- COMMERCIAL SERVICES & SUPPLIES 2.1% Dun & Bradstreet Corp. ....... 2,590 210,826 Equifax, Inc. ................ 7,640 222,782 Robert Half International, Inc. ...................... 8,730 209,695 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 643,303 ----------- COMMUNICATIONS EQUIPMENT 3.0% Cisco Systems, Inc.*.......... 11,811 228,189 Harris Corp. ................. 4,480 136,998 Motorola, Inc. ............... 63,873 353,218 QUALCOMM, Inc. ............... 5,220 220,910 ----------- TOTAL COMMUNICATIONS EQUIPMENT 939,315 ----------- COMPUTERS & PERIPHERALS 4.6% Apple, Inc.*.................. 2,890 363,649 Dell, Inc.*................... 22,341 259,602 Lexmark International, Inc. -- Class A*........... 5,400 105,948 NetApp, Inc.*................. 14,751 269,943 SanDisk Corp.*................ 27,301 429,172 ----------- TOTAL COMPUTERS & PERIPHERALS 1,428,314 ----------- CONSUMER FINANCE 0.5% SLM Corp.*.................... 35,292 170,460 ----------- TOTAL CONSUMER FINANCE 170,460 ----------- CONTAINERS & PACKAGING 0.6% Ball Corp. ................... 5,330 201,048 ----------- TOTAL CONTAINERS & PACKAGING 201,048 ----------- DIVERSIFIED CONSUMER SERVICES 0.7% Apollo Group, Inc. -- Class A*......................... 3,670 231,027 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 231,027 ----------- DIVERSIFIED FINANCIAL SERVICES 3.1% CME Group, Inc. .............. 1,040 230,204 IntercontinentalExchange, Inc.*...................... 4,780 418,728 NYSE Euronext................. 13,371 309,806 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 958,738 ----------- ELECTRICAL EQUIPMENT 0.7% Rockwell Automation, Inc. .... 6,700 211,653 ----------- TOTAL ELECTRICAL EQUIPMENT 211,653 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 3.1% Agilent Technologies, Inc.*... 23,231 424,198 Amphenol Corp. -- Class A..... 10,890 368,518 FLIR Systems, Inc.*........... 7,260 161,027 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 953,743 ----------- ENERGY EQUIPMENT & SERVICES 5.5% Baker Hughes, Inc. ........... 6,360 226,289 BJ Services Co. .............. 21,191 294,343 Cameron International Corp.*.. 7,390 189,036 ENSCO International, Inc. .... 5,720 161,762 Nabors Industries, Ltd.*...... 18,511 281,552 Schlumberger, Ltd. ........... 7,790 381,632 Smith International, Inc. .... 7,500 193,875 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 1,728,489 ----------- FOOD & STAPLES RETAILING 0.6% Sysco Corp. .................. 7,960 185,707 ----------- TOTAL FOOD & STAPLES RETAILING 185,707 ----------- FOOD PRODUCTS 1.6% Campbell Soup Co. ............ 5,920 152,262 Hershey Co.(The).............. 5,090 183,953 Kellogg Co. .................. 3,990 168,019 ----------- TOTAL FOOD PRODUCTS 504,234 ----------- GAS UTILITIES 0.5% Questar Corp. ................ 4,760 141,467 ----------- TOTAL GAS UTILITIES 141,467 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 4.2% Intuitive Surgical, Inc.*..... 3,350 481,495 Medtronic, Inc. .............. 4,940 158,080 St Jude Medical, Inc.*........ 4,800 160,896 Stryker Corp. ................ 3,600 139,356 Varian Medical Systems, Inc.*...................... 6,410 213,902 Zimmer Holdings, Inc.*........ 3,410 150,006 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,303,735 ----------- HEALTH CARE PROVIDERS & SERVICES 3.4% DaVita, Inc.*................. 6,530 302,796 Express Scripts, Inc.*........ 3,990 255,240 Laboratory Corp. of America Holdings*.................. 2,170 139,206 Patterson Cos., Inc.*......... 6,580 134,627 UnitedHealth Group, Inc. ..... 9,550 224,616 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,056,485 ----------- HEALTH CARE TECHNOLOGY 0.7% IMS Health, Inc. ............. 17,111 214,914 ----------- TOTAL HEALTH CARE TECHNOLOGY 214,914 -----------
See Notes to Financial Statements. 26 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONTINUED) HOTELS, RESTAURANTS & LEISURE 2.4% Starbucks Corp.*.............. 22,441 $324,497 Wynn Resorts Ltd.*............ 5,420 212,627 Yum! Brands, Inc. ............ 6,090 203,101 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 740,225 ----------- HOUSEHOLD DURABLES 0.7% Black & Decker Corp. ......... 5,140 207,142 ----------- TOTAL HOUSEHOLD DURABLES 207,142 ----------- HOUSEHOLD PRODUCTS 0.5% Colgate-Palmolive Co. ........ 2,710 159,890 ----------- TOTAL HOUSEHOLD PRODUCTS 159,890 ----------- INDUSTRIAL CONGLOMERATES 0.6% 3M Co. ....................... 3,530 203,328 ----------- TOTAL INDUSTRIAL CONGLOMERATES 203,328 ----------- INSURANCE 0.7% Progressive Corp.*............ 14,401 220,047 ----------- TOTAL INSURANCE 220,047 ----------- INTERNET & CATALOG RETAIL 1.2% Amazon.com, Inc.*............. 4,800 386,496 ----------- TOTAL INTERNET & CATALOG RETAIL 386,496 ----------- INTERNET SOFTWARE & SERVICES 5.0% Akamai Technologies, Inc.*.... 20,981 462,002 eBay, Inc.*................... 13,751 226,479 Google, Inc. -- Class A*...... 1,050 415,768 VeriSign, Inc.*............... 10,001 205,820 Yahoo!, Inc.*................. 17,061 243,802 ----------- TOTAL INTERNET SOFTWARE & SERVICES 1,553,871 ----------- IT SERVICES 5.2% Cognizant Technology Solutions Corp. -- Class A*.......... 17,571 435,585 Fiserv, Inc.*................. 4,110 153,385 Mastercard, Inc. -- Class A... 2,180 399,921 Paychex, Inc. ................ 8,400 226,884 Total System Services, Inc. .. 12,811 159,753 Western Union Co. ............ 15,641 261,987 ----------- TOTAL IT SERVICES 1,637,515 ----------- LIFE SCIENCES TOOLS & SERVICES 0.9% Waters Corp.*................. 6,330 279,596 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 279,596 ----------- MACHINERY 2.3% Caterpillar, Inc. ............ 6,620 235,540 Danaher Corp. ................ 2,710 158,372 PACCAR, Inc. ................. 9,520 337,389 ----------- TOTAL MACHINERY 731,301 ----------- MEDIA 1.3% McGraw-Hill Cos., Inc. ....... 7,940 239,391 Viacom, Inc. -- Class B*...... 8,260 158,922 ----------- TOTAL MEDIA 398,313 ----------- METALS & MINING 4.0% Freeport-McMoRan Copper & Gold, Inc. ................ 14,341 611,643 Nucor Corp. .................. 7,920 322,265 Titanium Metals Corp. ........ 48,072 326,409 ----------- TOTAL METALS & MINING 1,260,317 ----------- MULTILINE RETAIL 2.0% Sears Holdings Corp.*......... 9,841 614,767 ----------- TOTAL MULTILINE RETAIL 614,767 ----------- OIL, GAS & CONSUMABLE FUELS 10.3% Anadarko Petroleum Corp. ..... 4,480 192,909 Apache Corp. ................. 2,920 212,751 Cabot Oil & Gas Corp. ........ 7,100 214,349 Chesapeake Energy Corp. ...... 15,101 297,641 Chevron Corp. ................ 3,070 202,927 CONSOL Energy, Inc. .......... 5,500 172,040 Denbury Resources, Inc.*...... 10,650 173,382 Devon Energy Corp. ........... 2,140 110,959 EOG Resources, Inc. .......... 3,780 239,954 Exxon Mobil Corp. ............ 3,430 228,678 Hess Corp. ................... 3,570 195,600 Murphy Oil Corp. ............. 5,850 279,104 Range Resources Corp. ........ 3,980 159,081 Sunoco, Inc. ................. 9,130 242,036 XTO Energy, Inc. ............. 8,950 310,207 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 3,231,618 ----------- PERSONAL PRODUCTS 1.1% Avon Products, Inc. .......... 8,150 185,494 Estee Lauder Cos., Inc -- Class A............. 5,300 158,470 ----------- TOTAL PERSONAL PRODUCTS 343,964 ----------- PHARMACEUTICALS 0.9% Forest Laboratories, Inc.*.... 6,810 147,709 Johnson & Johnson, Inc. ...... 2,820 147,655 ----------- TOTAL PHARMACEUTICALS 295,364 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 1.5% CB Richard Ellis Group, Inc. -- Class A*........... 60,633 454,748 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 454,748 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.8% Altera Corp. ................. 10,681 174,207 MEMC Electronic Materials, Inc.*...................... 10,081 163,312 National Semiconductor Corp. ..................... 22,311 275,987 Texas Instruments, Inc. ...... 13,961 252,136 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 865,642 ----------- SOFTWARE 6.6% Adobe Systems, Inc.*.......... 7,010 191,724 Autodesk, Inc.*............... 13,451 268,213 BMC Software, Inc.*........... 11,091 384,525 Compuware Corp.*.............. 19,831 148,336 Intuit, Inc.*................. 8,210 189,897 Microsoft Corp. .............. 12,071 244,558 Oracle Corp. ................. 11,291 218,368 Salesforce.com, Inc.*......... 9,821 420,437 ----------- TOTAL SOFTWARE 2,066,058 ----------- SPECIALTY RETAIL 4.9% Abercrombie & Fitch Co. -- Class A............. 12,661 342,607 AutoZone, Inc.*............... 1,600 266,224 Bed Bath & Beyond, Inc.*...... 7,050 214,461 GameStop Corp. -- Class A*.... 6,250 188,500
See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) Sherwin-Williams Co.(The)..... 3,520 $199,373 TJX Cos., Inc. ............... 11,051 309,096 ----------- TOTAL SPECIALTY RETAIL 1,520,261 ----------- TEXTILES, APPAREL & LUXURY GOODS 1.7% Coach, Inc.*.................. 16,101 394,474 NIKE, Inc. -- Class B......... 2,710 142,194 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 536,668 ----------- TRADING COMPANIES & DISTRIBUTORS 0.6% Fastenal Co. ................. 5,110 196,020 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 196,020 ----------- TOTAL COMMON STOCKS (Cost $37,440,384) 31,194,151 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 27,388 27,388 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $27,388) 27,388 ----------- TOTAL INVESTMENTS 100.0% (Cost $37,467,772) 31,221,539 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,304 ----------- NET ASSETS--100.0% $31,222,843 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. 28 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.8% CAPITAL MARKETS 0.7% Apollo Investment Corp. ...... 11,461 $55,013 ---------- TOTAL CAPITAL MARKETS 55,013 ---------- CHEMICALS 7.1% Ashland, Inc. ................ 18,639 409,312 Cabot Corp. .................. 3,970 57,962 Cytec Industries, Inc. ....... 2,380 47,267 RPM International, Inc. ...... 5,700 78,774 ---------- TOTAL CHEMICALS 593,315 ---------- COMMERCIAL BANKS 2.7% Associated Banc-Corp. ........ 2,340 36,200 Colonial BancGroup, Inc. ..... 114,316 86,880 PacWest Bancorp............... 1,790 26,080 Webster Financial Corp. ...... 9,240 48,325 Wilmington Trust Corp. ....... 1,800 26,118 ---------- TOTAL COMMERCIAL BANKS 223,603 ---------- COMMERCIAL SERVICES & SUPPLIES 4.7% Deluxe Corp. ................. 5,500 79,750 HNI Corp. .................... 6,430 99,665 Kelly Services, Inc. -- Class A.......................... 12,660 143,818 Manpower, Inc. ............... 1,690 72,822 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 396,055 ---------- COMPUTERS & PERIPHERALS 0.7% Imation Corp. ................ 5,540 55,400 ---------- TOTAL COMPUTERS & PERIPHERALS 55,400 ---------- CONTAINERS & PACKAGING 8.3% Packaging Corp. of America.... 5,550 88,079 Temple-Inland, Inc. .......... 50,678 605,095 ---------- TOTAL CONTAINERS & PACKAGING 693,174 ---------- DIVERSIFIED CONSUMER SERVICES 2.9% Brink's Home Security Holdings, Inc.*............ 5,220 138,747 Regis Corp. .................. 5,340 102,208 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 240,955 ---------- ELECTRIC UTILITIES 2.0% Great Plains Energy, Inc. .... 4,750 68,732 NV Energy, Inc. .............. 4,930 50,533 Westar Energy, Inc. .......... 2,840 49,785 ---------- TOTAL ELECTRIC UTILITIES 169,050 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 6.9% Arrow Electronics, Inc.*...... 3,510 79,817 Avnet, Inc.*.................. 2,830 61,949 Ingram Micro, Inc. -- Class A*......................... 8,890 129,083 Tech Data Corp.*.............. 6,710 193,181 Vishay Intertechnology, Inc.*...................... 19,689 115,574 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 579,604 ---------- FOOD PRODUCTS 1.2% Smithfield Foods, Inc.*....... 11,160 96,422 ---------- TOTAL FOOD PRODUCTS 96,422 ---------- GAS UTILITIES 1.4% AGL Resources, Inc. .......... 1,530 47,690 Oneok, Inc. .................. 2,550 66,734 ---------- TOTAL GAS UTILITIES 114,424 ---------- HEALTH CARE PROVIDERS & SERVICES 3.5% Health Net, Inc.*............. 8,740 126,206 Kindred Healthcare, Inc.*..... 6,660 86,713 WellCare Health Plans, Inc.*.. 5,610 84,206 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 297,125 ---------- HOTELS, RESTAURANTS & LEISURE 4.9% Bob Evans Farms, Inc. ........ 2,130 51,652 Boyd Gaming Corp. ............ 17,819 163,757 Brinker International, Inc. .. 11,100 196,692 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 412,101 ---------- HOUSEHOLD DURABLES 2.3% American Greetings Corp. -- Class A........... 6,510 51,103 Blyth, Inc. .................. 3,150 138,852 ---------- TOTAL HOUSEHOLD DURABLES 189,955 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.5% Black Hills Corp. ............ 1,930 38,368 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 38,368 ---------- INSURANCE 6.5% Fidelity National Financial, Inc. -- Class A............ 5,610 101,709 First American Corp. ......... 1,580 44,367 Horace Mann Educators Corp. .. 9,440 82,883 Old Republic International Corp. ..................... 8,840 82,831 Protective Life Corp. ........ 13,430 115,095 Unitrin, Inc. ................ 6,960 118,320 ---------- TOTAL INSURANCE 545,205 ---------- MACHINERY 5.4% Crane Co. .................... 3,330 76,890 Federal Signal Corp. ......... 5,270 40,948 Oshkosh Corp. ................ 26,519 254,582 Timken Co. ................... 4,850 77,988 ---------- TOTAL MACHINERY 450,408 ---------- MARINE 0.6% Alexander & Baldwin, Inc. .... 1,900 50,616 ---------- TOTAL MARINE 50,616 ---------- MEDIA 1.1% Harte-Hanks, Inc. ............ 11,290 93,255 ---------- TOTAL MEDIA 93,255 ---------- METALS & MINING 0.8% Worthington Industries, Inc. ...................... 4,530 67,497 ---------- TOTAL METALS & MINING 67,497 ---------- MULTI-UTILITIES 1.4% OGE Energy Corp. ............. 1,830 47,049 PNM Resources, Inc. .......... 8,050 68,586 ---------- TOTAL MULTI-UTILITIES 115,635 ---------- OIL, GAS & CONSUMABLE FUELS 0.7% Southern Union Co. ........... 3,650 58,072 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 58,072 ---------- PAPER & FOREST PRODUCTS 3.2% Louisiana-Pacific Corp. ...... 66,338 269,996 ---------- TOTAL PAPER & FOREST PRODUCTS 269,996 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) 15.2% Alexandria Real Estate Equities, Inc. ............ 1,470 53,626 BRE Properties, Inc. ......... 2,180 53,563
See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) Camden Property Trust......... 2,490 $67,554 Cousins Properties, Inc. ..... 5,010 42,334 Duke Realty Corp. ............ 9,360 91,447 Equity One, Inc. ............. 4,110 61,157 Highwoods Properties, Inc. ... 2,760 66,212 Hospitality Properties Trust.. 8,050 98,532 Liberty Property Trust........ 3,770 91,762 Macerich Co.(The)............. 4,860 85,196 Mack-Cali Realty Corp. ....... 4,150 111,469 Nationwide Health Properties, Inc. ...................... 2,590 63,947 Omega Healthcare Investors, Inc. ...................... 4,080 64,138 Realty Income Corp. .......... 2,740 61,184 Regency Centers Corp. ........ 1,600 59,920 SL Green Realty Corp. ........ 5,870 103,664 UDR, Inc. .................... 3,140 31,620 Weingarten Realty Investors... 4,360 67,754 ---------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,275,079 ---------- ROAD & RAIL 0.8% YRC Worldwide, Inc.*.......... 21,489 65,112 ---------- TOTAL ROAD & RAIL 65,112 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.3% Intersil Corp. -- Class A..... 7,350 85,260 RF Micro Devices, Inc.*....... 51,288 108,218 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 193,478 ---------- SPECIALTY RETAIL 9.8% AnnTaylor Stores Corp.*....... 17,589 129,982 Barnes & Noble, Inc. ......... 8,140 212,617 Foot Locker, Inc. ............ 18,719 222,569 Williams-Sonoma, Inc. ........ 18,419 257,866 ---------- TOTAL SPECIALTY RETAIL 823,034 ---------- THRIFTS & MORTGAGE FINANCE 1.5% Astoria Financial Corp. ...... 2,350 19,411 New York Community Bancorp, Inc. ...................... 5,480 61,979 Washington Federal, Inc. ..... 3,310 42,964 ---------- TOTAL THRIFTS & MORTGAGE FINANCE 124,354 ---------- TOBACCO 0.7% Universal Corp. .............. 2,000 60,320 ---------- TOTAL TOBACCO 60,320 ---------- TOTAL COMMON STOCKS (Cost $9,832,688) 8,346,625 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 9,923 9,923 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $9,923) 9,923 ---------- TOTAL INVESTMENTS 99.9% (Cost $9,842,611) 8,356,548 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 7,615 ---------- NET ASSETS--100.0% $8,364,163 ------------------------------------------------------
*Non-Income Producing Security. See Notes to Financial Statements. 30 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 100.0% AEROSPACE & DEFENSE 0.7% Alliant Techsystems, Inc.*.... 1,672 $133,175 ----------- TOTAL AEROSPACE & DEFENSE 133,175 ----------- AIRLINES 0.4% Alaska Air Group, Inc.*....... 4,038 67,758 ----------- TOTAL AIRLINES 67,758 ----------- AUTOMOBILES 0.9% Thor Industries, Inc. ........ 7,778 178,816 ----------- TOTAL AUTOMOBILES 178,816 ----------- BEVERAGES 1.9% Hansen Natural Corp.*......... 8,832 359,992 ----------- TOTAL BEVERAGES 359,992 ----------- BIOTECHNOLOGY 1.6% United Therapeutics Corp.*.... 4,732 297,217 ----------- TOTAL BIOTECHNOLOGY 297,217 ----------- CAPITAL MARKETS 3.3% Affiliated Managers Group, Inc.*...................... 4,346 247,070 Eaton Vance Corp. ............ 8,654 236,860 SEI Investments Co. .......... 10,286 144,313 ----------- TOTAL CAPITAL MARKETS 628,243 ----------- CHEMICALS 0.9% FMC Corp. .................... 3,676 179,131 ----------- TOTAL CHEMICALS 179,131 ----------- COMMERCIAL BANKS 0.3% SVB Financial Group*.......... 2,920 60,619 ----------- TOTAL COMMERCIAL BANKS 60,619 ----------- COMMERCIAL SERVICES & SUPPLIES 5.3% Clean Harbors, Inc.*.......... 2,816 141,081 Copart, Inc.*................. 2,198 68,995 Corporate Executive Board Co.(The)................... 9,964 172,178 FTI Consulting, Inc.*......... 1,544 84,735 Herman Miller, Inc. .......... 13,616 202,470 Korn/Ferry International*..... 8,666 91,773 Navigant Consulting, Inc.*.... 5,348 78,669 Rollins, Inc. ................ 6,080 109,440 Watson Wyatt Worldwide, Inc.- Class A.................... 1,272 67,480 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,016,821 ----------- COMMUNICATIONS EQUIPMENT 3.6% CommScope, Inc.*.............. 16,868 423,387 F5 Networks, Inc.*............ 5,516 150,421 Plantronics, Inc. ............ 8,190 104,341 ----------- TOTAL COMMUNICATIONS EQUIPMENT 678,149 ----------- COMPUTERS & PERIPHERALS 1.8% Western Digital Corp.*........ 14,656 344,709 ----------- TOTAL COMPUTERS & PERIPHERALS 344,709 ----------- DIVERSIFIED CONSUMER SERVICES 4.4% Career Education Corp.*....... 5,452 120,162 ITT Educational Services, Inc.*...................... 1,928 194,285 Sotheby's..................... 33,635 390,502 Strayer Education, Inc. ...... 668 126,526 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 831,475 ----------- ELECTRICAL EQUIPMENT 1.9% AMETEK, Inc. ................. 2,328 74,985 Roper Industries, Inc. ....... 1,516 69,114 Thomas & Betts Corp.*......... 6,738 209,687 ----------- TOTAL ELECTRICAL EQUIPMENT 353,786 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Trimble Navigation, Ltd.*..... 2,830 60,675 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 60,675 ----------- ENERGY EQUIPMENT & SERVICES 7.6% FMC Technologies, Inc.*....... 4,950 169,438 Helix Energy Solutions Group, Inc.*...................... 31,102 282,717 Helmerich & Payne, Inc. ...... 7,766 239,348 Oceaneering International, Inc.*...................... 3,126 142,452 Patterson-UTI Energy, Inc. ... 19,994 254,124 Superior Energy Services, Inc.*...................... 7,276 139,772 Unit Corp.*................... 7,972 217,556 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 1,445,407 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 4.2% Gen-Probe, Inc.*.............. 2,146 103,351 Hologic, Inc.*................ 9,386 139,476 Idexx Laboratories, Inc.*..... 3,020 118,686 Immucor, Inc.*................ 5,028 81,906 Kinetic Concepts, Inc.*....... 10,390 257,256 ResMed, Inc.*................. 2,468 94,895 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 795,570 ----------- HEALTH CARE PROVIDERS & SERVICES 1.5% Lincare Holdings, Inc.*....... 4,114 99,271 VCA Antech, Inc.*............. 7,690 192,404 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 291,675 ----------- HEALTH CARE TECHNOLOGY 0.6% Cerner Corp.*................. 2,030 109,214 ----------- TOTAL HEALTH CARE TECHNOLOGY 109,214 ----------- HOTELS, RESTAURANTS & LEISURE 1.8% Chipotle Mexican Grill, Inc. -- Class A*........... 2,300 186,507 Panera Bread Co. -- Class A*.. 2,792 156,380 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 342,887 ----------- HOUSEHOLD DURABLES 1.9% NVR, Inc.*.................... 476 240,556 Toll Brothers, Inc.*.......... 6,082 123,221 ----------- TOTAL HOUSEHOLD DURABLES 363,777 ----------- HOUSEHOLD PRODUCTS 1.7% Church & Dwight Co., Inc. .... 1,324 72,039 Energizer Holdings, Inc.*..... 4,422 253,380 ----------- TOTAL HOUSEHOLD PRODUCTS 325,419 ----------- INSURANCE 2.0% Brown & Brown, Inc. .......... 5,182 100,842 Hanover Insurance Group, Inc.(The).................. 1,940 58,161 HCC Insurance Holdings, Inc. ...................... 4,886 116,873 W.R. Berkley Corp. ........... 4,204 100,518 ----------- TOTAL INSURANCE 376,394 ----------- INTERNET & CATALOG RETAIL 1.7% NetFlix, Inc.*................ 4,990 226,097 Priceline.com, Inc.*.......... 1,066 103,498 ----------- TOTAL INTERNET & CATALOG RETAIL 329,595 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) INTERNET SOFTWARE & SERVICES 2.6% Digital River, Inc.*.......... 7,058 $271,168 ValueClick, Inc.*............. 20,724 219,675 ----------- TOTAL INTERNET SOFTWARE & SERVICES 490,843 ----------- IT SERVICES 3.6% Alliance Data Systems Corp.*.. 2,108 88,262 DST Systems, Inc.*............ 4,602 166,454 Gartner, Inc.*................ 3,666 49,528 Global Payments, Inc. ........ 2,482 79,573 Metavante Technologies, Inc.*...................... 4,988 117,667 NeuStar, Inc. -- Class A*..... 9,514 180,861 ----------- TOTAL IT SERVICES 682,345 ----------- LIFE SCIENCES TOOLS & SERVICES 1.0% Mettler Toledo International, Inc.*...................... 668 41,169 Pharmaceutical Product Development, Inc. ......... 3,278 64,282 Techne Corp. ................. 1,556 89,034 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 194,485 ----------- MACHINERY 5.7% Bucyrus International, Inc. -- Class A............ 6,956 151,015 Donaldson Co., Inc. .......... 3,062 101,015 Graco, Inc. .................. 6,954 164,045 Joy Global, Inc. ............. 10,480 267,240 Lincoln Electric Holdings, Inc. ...................... 1,863 82,959 Terex Corp.*.................. 8,922 123,124 Trinity Industries, Inc. ..... 13,308 194,430 ----------- TOTAL MACHINERY 1,083,828 ----------- MEDIA 2.6% DreamWorks Animation SKG, Inc. -- Class A*........... 4,320 103,723 John Wiley & Sons, Inc. -- Class A............ 2,766 93,768 Lamar Advertising Co. -- Class A*......................... 9,810 165,789 Marvel Entertainment, Inc.*... 4,630 138,159 ----------- TOTAL MEDIA 501,439 ----------- METALS & MINING 3.8% Cliffs Natural Resources, Inc. ...................... 9,654 222,621 Reliance Steel & Aluminum Co. ....................... 7,368 259,575 Steel Dynamics, Inc. ......... 19,930 248,128 ----------- TOTAL METALS & MINING 730,324 ----------- MULTILINE RETAIL 0.4% Dollar Tree, Inc.*............ 1,864 78,922 ----------- TOTAL MULTILINE RETAIL 78,922 ----------- OIL, GAS & CONSUMABLE FUELS 3.5% Comstock Resources, Inc.*..... 1,390 47,899 Encore Acquisition Co.*....... 6,468 188,801 Frontier Oil Corp. ........... 18,346 233,178 Quicksilver Resources, Inc.*.. 24,044 195,478 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 665,356 ----------- PHARMACEUTICALS 2.5% Endo Pharmaceuticals Holdings, Inc.*...................... 4,862 80,418 Sepracor, Inc.*............... 27,654 392,963 ----------- TOTAL PHARMACEUTICALS 473,381 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.8% Jones Lang LaSalle, Inc. ..... 4,900 158,123 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 158,123 ----------- ROAD & RAIL 2.6% Con-way, Inc. ................ 6,210 153,884 J.B. Hunt Transport Services, Inc. ...................... 5,514 155,053 Landstar System, Inc. ........ 5,144 183,178 ----------- TOTAL ROAD & RAIL 492,115 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.3% Cree, Inc.*................... 4,770 130,650 Lam Research Corp.*........... 11,390 317,553 Silicon Laboratories, Inc.*... 5,414 180,070 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 628,273 ----------- SOFTWARE 3.2% ACI Worldwide, Inc.*.......... 4,500 77,715 Ansys, Inc.*.................. 2,894 79,932 Factset Research Systems, Inc. ...................... 3,742 200,534 Parametric Technology Corp.*.. 9,014 100,506 Synopsys, Inc.*............... 7,316 159,343 ----------- TOTAL SOFTWARE 618,030 ----------- SPECIALTY RETAIL 10.9% Advance Auto Parts, Inc. ..... 2,932 128,275 Aeropostale, Inc.*............ 13,526 459,478 Chico's FAS, Inc.*............ 40,318 308,029 Dick's Sporting Goods, Inc.*.. 6,812 129,428 Guess?, Inc. ................. 10,376 270,191 J. Crew Group, Inc.*.......... 23,580 405,812 Ross Stores, Inc. ............ 4,358 165,343 Urban Outfitters, Inc.*....... 10,388 202,462 ----------- TOTAL SPECIALTY RETAIL 2,069,018 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.4% Timberland Co. -- Class A*.... 7,548 122,579 Under Armour, Inc. -- Class A*......................... 7,522 177,068 Warnaco Group, Inc.*.......... 5,618 162,023 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 461,670 ----------- TRADING COMPANIES & DISTRIBUTORS 0.8% MSC Industrial Direct Co. -- Class A............. 3,562 145,508 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 145,508 ----------- TOTAL COMMON STOCKS (Cost $21,252,784) 19,044,164 ----------- SHORT TERM INVESTMENTS 0.0%(A) SSgA Government Money Market Fund....................... 8,940 8,940 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $8,940) 8,940 ----------- TOTAL INVESTMENTS 100.0% (Cost $21,261,724) 19,053,104 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (4,604) ----------- NET ASSETS--100.0% $19,048,500 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. 32 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.7% AUTO COMPONENTS 3.5% Spartan Motors, Inc. ........ 30,665 $247,467 Standard Motor Products, Inc. ..................... 109,353 437,412 Superior Industries International, Inc. ...... 9,827 148,191 ----------- TOTAL AUTO COMPONENTS 833,070 ----------- BUILDING PRODUCTS 0.5% Apogee Enterprises, Inc. .... 9,638 129,149 ----------- TOTAL BUILDING PRODUCTS 129,149 ----------- CHEMICALS 1.3% A. Schulman, Inc. ........... 5,804 91,065 PolyOne Corp.*............... 33,776 92,546 Quaker Chemical Corp. ....... 10,697 125,155 ----------- TOTAL CHEMICALS 308,766 ----------- COMMERCIAL BANKS 3.5% First Midwest Bancorp, Inc. ..................... 4,117 36,477 Frontier Financial Corp. .... 60,187 85,466 Independent Bank Corp. ...... 61,360 110,448 Irwin Financial Corp.*....... 108,881 137,190 Provident Bankshares Corp. .. 9,041 79,470 South Financial Group, Inc. ..................... 28,632 47,529 Sterling Financial Corp. .... 39,664 126,528 Susquehanna Bancshares, Inc. ..................... 8,161 65,778 Umpqua Holdings Corp. ....... 7,061 67,715 Whitney Holding Corp. ....... 6,841 81,818 ----------- TOTAL COMMERCIAL BANKS 838,419 ----------- COMMERCIAL SERVICES & SUPPLIES 4.8% Bowne & Co., Inc. ........... 44,420 226,986 CDI Corp. ................... 11,650 139,218 Consolidated Graphics, Inc.*..................... 3,646 70,805 Spherion Corp.*.............. 121,170 435,000 Standard Register Co.(The)... 15,966 83,343 Volt Information Sciences, Inc.*..................... 23,761 170,604 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,125,956 ----------- COMPUTERS & PERIPHERALS 0.2% Hutchinson Technology, Inc.*..................... 22,158 42,543 ----------- TOTAL COMPUTERS & PERIPHERALS 42,543 ----------- CONTAINERS & PACKAGING 0.5% Myers Industries, Inc. ...... 12,456 124,934 ----------- TOTAL CONTAINERS & PACKAGING 124,934 ----------- DIVERSIFIED CONSUMER SERVICES 0.4% Hillenbrand, Inc. ........... 4,840 87,991 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 87,991 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.5% Fairpoint Communications, Inc. ..................... 52,602 54,706 Iowa Telecommunications Services, Inc. ........... 4,128 54,407 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 109,113 ----------- ELECTRIC UTILITIES 0.4% Central Vermont Public Service Corp. ............ 2,954 50,691 UIL Holdings Corp. .......... 2,347 54,192 ----------- TOTAL ELECTRIC UTILITIES 104,883 ----------- ELECTRICAL EQUIPMENT 0.6% Baldor Electric Co. ......... 3,415 79,228 C&D Technologies, Inc.*...... 23,666 51,829 ----------- TOTAL ELECTRICAL EQUIPMENT 131,057 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 9.0% Agilysys, Inc. .............. 38,491 232,101 Brightpoint, Inc.*........... 36,552 190,436 CTS Corp. ................... 8,088 49,094 Gerber Scientific, Inc.*..... 31,377 123,939 Insight Enterprises, Inc.*... 54,404 311,191 Keithley Instruments, Inc. .. 74,162 256,600 SYNNEX Corp.*................ 26,411 568,629 Technitrol, Inc. ............ 99,484 404,900 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 2,136,890 ----------- FOOD & STAPLES RETAILING 1.5% Andersons, Inc.(The)......... 8,308 133,509 Great Atlantic & Pacific Tea Co., Inc.*................ 31,346 230,080 ----------- TOTAL FOOD & STAPLES RETAILING 363,589 ----------- GAS UTILITIES 0.4% Atmos Energy Corp. .......... 3,792 93,700 ----------- TOTAL GAS UTILITIES 93,700 ----------- HOTELS, RESTAURANTS & LEISURE 12.3% DineEquity Inc. ............. 9,324 298,741 O'Charleys, Inc. ............ 156,665 1,091,955 Ruby Tuesday, Inc.*.......... 198,445 1,524,058 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 2,914,754 ----------- HOUSEHOLD DURABLES 2.5% Ethan Allen Interiors, Inc. ..................... 9,900 133,155 La-Z-Boy, Inc. .............. 54,216 144,214 National Presto Industries, Inc. ..................... 1,037 73,897 Russ Berrie & Co., Inc.*..... 39,349 75,156 Standard Pacific Corp.*...... 91,302 170,735 ----------- TOTAL HOUSEHOLD DURABLES 597,157 ----------- INSURANCE 5.0% Delphi Financial Group -- Class A.......... 4,086 70,565 National Financial Partners Corp. .................... 101,768 718,482 Presidential Life Corp. ..... 8,056 86,119 Stewart Information Services Corp. .................... 13,158 297,502 ----------- TOTAL INSURANCE 1,172,668 ----------- IT SERVICES 3.4% Gevity HR, Inc. ............. 171,384 678,681 Startek, Inc.*............... 33,252 136,998 ----------- TOTAL IT SERVICES 815,679 ----------- LEISURE EQUIPMENT & PRODUCTS 3.0% Arctic Cat, Inc. ............ 24,263 97,052 Brunswick Corp. ............. 102,711 614,212 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 711,264 ----------- MACHINERY 1.8% Barnes Group, Inc. .......... 4,599 65,122 Briggs & Stratton Corp. ..... 6,883 102,419 John Bean Technologies Corp. .................... 18,743 206,548 Wabash National Corp. ....... 34,038 42,547 ----------- TOTAL MACHINERY 416,636 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) MEDIA 1.7% EW Scripps Co. -- Class A.... 148,409 $292,366 Live Nation, Inc.*........... 30,728 120,146 ----------- TOTAL MEDIA 412,512 ----------- MULTI-UTILITIES 0.2% CH Energy Group, Inc. ....... 1,100 48,884 ----------- TOTAL MULTI-UTILITIES 48,884 ----------- MULTILINE RETAIL 1.8% Tuesday Morning Corp.*....... 126,409 431,055 ----------- TOTAL MULTILINE RETAIL 431,055 ----------- PAPER & FOREST PRODUCTS 0.9% Buckeye Technologies, Inc.*.. 18,418 94,853 Neenah Paper, Inc. .......... 24,829 124,393 ----------- TOTAL PAPER & FOREST PRODUCTS 219,246 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 10.9% Acadia Realty Trust.......... 3,594 52,113 BioMed Realty Trust, Inc. ... 13,672 155,997 Cedar Shopping Centers, Inc. ..................... 26,484 95,078 Colonial Properties Trust.... 32,393 234,525 DiamondRock Hospitality Co. ...................... 36,363 235,996 EastGroup Properties, Inc. .. 1,823 61,271 Entertainment Properties Trust..................... 3,656 84,490 Extra Space Storage, Inc. ... 10,780 76,646 Franklin Street Properties Corp. .................... 4,903 65,455 Home Properties, Inc. ....... 2,168 79,002 Inland Real Estate Corp. .... 6,810 59,792 Kilroy Realty Corp. ......... 2,871 61,841 Kite Realty Group Trust...... 35,505 124,267 Lexington Realty Trust....... 32,534 125,256 LTC Properties, Inc. ........ 4,903 88,303 Mid-America Apartment Communities, Inc. ........ 1,749 64,695 National Retail Properties, Inc. ..................... 7,616 135,108 Parkway Properties, Inc. .... 9,219 127,868 Pennsylvania Real Estate Investment Trust.......... 40,104 310,806 Post Properties, Inc. ....... 7,700 98,252 Senior Housing Properties Trust..................... 7,082 116,074 Sovran Self Storage, Inc. ... 3,048 68,702 Urstadt Biddle Properties, Inc -- Class A............ 3,761 57,769 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 2,579,306 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.0% Cypress Semiconductor Corp.*.................... 17,475 138,577 Rudolph Technologies, Inc.*.. 20,167 105,473 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 244,050 ----------- SPECIALTY RETAIL 19.9% Big 5 Sporting Goods Corp. .. 45,384 373,510 Brown Shoe Co., Inc. ........ 24,609 158,236 Christopher & Banks Corp. ... 39,339 218,725 Group 1 Automotive, Inc. .... 26,736 569,477 Lithia Motors, Inc. -- Class A......................... 107,069 312,641 MarineMax, Inc.*............. 68,788 312,985 Men's Wearhouse, Inc.(The)... 5,134 95,698 OfficeMax, Inc. ............. 53,461 398,284 PEP Boys-Manny Moe & Jack.... 53,702 397,395 Sonic Automotive, Inc. -- Class A........... 99,285 512,311 Stage Stores, Inc. .......... 21,927 268,606 Stein Mart, Inc.*............ 203,515 889,361 Tween Brands, Inc.*.......... 24,274 70,880 Zale Corp.*.................. 35,400 131,688 ----------- TOTAL SPECIALTY RETAIL 4,709,797 ----------- TEXTILES, APPAREL & LUXURY GOODS 5.2% Liz Claiborne, Inc. ......... 101,988 483,423 Oxford Industries, Inc. ..... 40,093 390,506 Perry Ellis International, Inc.*..................... 26,945 197,507 Quiksilver, Inc.*............ 95,943 158,306 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 1,229,742 ----------- THRIFTS & MORTGAGE FINANCE 3.0% Brookline Bancorp, Inc. ..... 6,495 64,431 Flagstar Bancorp, Inc.*...... 388,267 562,987 Guaranty Financial Group, Inc.*..................... 130,452 76,967 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 704,385 ----------- TOTAL COMMON STOCKS (Cost $21,838,951) 23,637,195 ----------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund...................... 56,811 56,811 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $56,811) 56,811 ----------- TOTAL INVESTMENTS 99.9% (Cost $21,895,762) 23,694,006 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 12,055 ----------- NET ASSETS--100.0% $23,706,061 ------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. 34 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% AEROSPACE & DEFENSE 3.1% AAR Corp.*.................... 920 $13,864 Aerovironment, Inc.*.......... 840 19,875 American Science & Engineering, Inc. ......... 340 20,489 Axsys Technologies, Inc.*..... 330 13,830 Ceradyne, Inc.*............... 2,550 43,962 Curtiss-Wright Corp. ......... 560 17,903 Orbital Sciences Corp.*....... 1,020 15,769 Stanley, Inc.*................ 690 17,788 Teledyne Technologies, Inc.*.. 460 14,688 ---------- TOTAL AEROSPACE & DEFENSE 178,168 ---------- AIR FREIGHT & LOGISTICS 0.3% Forward Air Corp. ............ 1,010 16,837 ---------- TOTAL AIR FREIGHT & LOGISTICS 16,837 ---------- AIRLINES 0.4% SkyWest, Inc. ................ 1,730 20,829 ---------- TOTAL AIRLINES 20,829 ---------- AUTO COMPONENTS 0.5% Drew Industries, Inc.*........ 1,930 27,561 ---------- TOTAL AUTO COMPONENTS 27,561 ---------- BEVERAGES 0.2% Boston Beer Co., Inc. -- Class A*......................... 530 14,098 ---------- TOTAL BEVERAGES 14,098 ---------- BIOTECHNOLOGY 1.2% Cubist Pharmaceuticals, Inc.*...................... 2,610 43,326 Martek Biosciences Corp. ..... 1,550 28,241 ---------- TOTAL BIOTECHNOLOGY 71,567 ---------- BUILDING PRODUCTS 0.3% Simpson Manufacturing Co., Inc. ...................... 650 14,469 ---------- TOTAL BUILDING PRODUCTS 14,469 ---------- CAPITAL MARKETS 3.7% Greenhill & Co., Inc. ........ 810 62,799 optionsXpress Holdings, Inc. ...................... 3,440 56,623 Stifel Financial Corp.*....... 270 13,292 TradeStation Group, Inc.*..... 10,181 82,568 ---------- TOTAL CAPITAL MARKETS 215,282 ---------- CHEMICALS 0.3% Balchem Corp. ................ 600 14,934 ---------- TOTAL CHEMICALS 14,934 ---------- COMMERCIAL BANKS 1.8% Cascade Bancorp............... 3,681 6,110 East West Bancorp, Inc. ...... 1,770 12,089 Nara Bancorp, Inc. ........... 2,590 9,609 Pinnacle Financial Partners, Inc.*...................... 1,250 22,300 PrivateBancorp, Inc. ......... 700 14,175 Signature Bank*............... 820 22,296 Wilshire Bancorp, Inc. ....... 4,841 19,558 ---------- TOTAL COMMERCIAL BANKS 106,137 ---------- COMMERCIAL SERVICES & SUPPLIES 1.4% Geo Group, Inc.(The)*......... 1,470 24,446 SYKES Enterprises, Inc.*...... 970 19,070 Viad Corp. ................... 1,800 34,344 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 77,860 ---------- COMMUNICATIONS EQUIPMENT 1.7% Bel Fuse, Inc. -- Class B..... 1,090 17,636 Comtech Telecommunications Corp.*..................... 590 19,747 NETGEAR, Inc.*................ 2,780 44,508 ViaSat, Inc.*................. 810 18,622 ---------- TOTAL COMMUNICATIONS EQUIPMENT 100,513 ---------- COMPUTERS & PERIPHERALS 2.2% Intevac, Inc.*................ 11,971 82,480 Stratasys, Inc.*.............. 1,320 12,355 Synaptics, Inc.*.............. 900 29,232 ---------- TOTAL COMPUTERS & PERIPHERALS 124,067 ---------- CONSTRUCTION MATERIALS 1.1% Eagle Materials, Inc. ........ 2,020 56,156 Headwaters, Inc.*............. 3,400 8,568 ---------- TOTAL CONSTRUCTION MATERIALS 64,724 ---------- CONSUMER FINANCE 0.9% First Cash Financial Services, Inc.*...................... 960 15,782 World Acceptance Corp.*....... 1,160 34,429 ---------- TOTAL CONSUMER FINANCE 50,211 ---------- DIVERSIFIED CONSUMER SERVICES 1.6% Capella Education Co.*........ 350 17,983 Coinstar, Inc.*............... 750 26,693 Pre-Paid Legal Services, Inc.*...................... 910 33,515 Universal Technical Institute, Inc.*...................... 1,130 16,091 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 94,282 ---------- DIVERSIFIED FINANCIAL SERVICES 0.6% Portfolio Recovery Associates, Inc.*...................... 940 32,872 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 32,872 ---------- ELECTRICAL EQUIPMENT 0.5% II-VI, Inc.*.................. 1,120 26,846 ---------- TOTAL ELECTRICAL EQUIPMENT 26,846 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 3.5% Daktronics, Inc. ............. 2,700 24,408 Electro Scientific Industries, Inc.*...................... 4,591 39,483 FARO Technologies, Inc.*...... 1,540 23,346 Park Electrochemical Corp. ... 1,610 33,166 Plexus Corp.*................. 2,010 44,522 TTM Technologies, Inc.*....... 4,841 35,920 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 200,845 ---------- ENERGY EQUIPMENT & SERVICES 6.6% Basic Energy Services, Inc.*.. 4,731 48,256 CARBO Ceramics, Inc. ......... 600 18,426 Dril-Quip, Inc.*.............. 1,020 35,068 Hornbeck Offshore Services, Inc.*...................... 2,550 59,236 ION Geophysical Corp.*........ 8,361 20,902 Lufkin Industries, Inc. ...... 600 20,940 NATCO Group, Inc. -- Class A*......................... 1,430 34,406 Oil States International, Inc.*...................... 1,810 34,209 Pioneer Drilling Co.*......... 3,621 18,105 SEACOR Holdings, Inc.*........ 330 21,688 Superior Well Services, Inc.*...................... 3,850 41,195 Tetra Technologies, Inc.*..... 5,421 31,008 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 383,439 ----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD & STAPLES RETAILING 0.3% Spartan Stores, Inc. ......... 1,010 $16,433 ---------- TOTAL FOOD & STAPLES RETAILING 16,433 ---------- FOOD PRODUCTS 1.9% Darling International, Inc.*.. 5,491 31,409 Diamond Foods, Inc. .......... 1,080 28,285 Green Mountain Coffee Roasters, Inc.*............ 690 49,894 ---------- TOTAL FOOD PRODUCTS 109,588 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 2.8% Abaxis, Inc.*................. 1,260 19,051 ICU Medical, Inc.*............ 460 17,296 Integra LifeSciences Holdings Corp.*..................... 660 17,041 Meridian Bioscience, Inc. .... 1,180 20,509 Natus Medical, Inc.*.......... 1,570 13,785 Palomar Medical Technologies, Inc.*...................... 6,021 51,841 SurModics, Inc.*.............. 360 7,812 Symmetry Medical, Inc.*....... 2,240 16,262 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 163,597 ---------- HEALTH CARE PROVIDERS & SERVICES 6.6% Air Methods Corp.*............ 1,020 27,081 Amedisys, Inc.*............... 440 14,758 Amsurg Corp.*................. 570 11,708 Catalyst Health Solutions, Inc.*...................... 1,570 35,404 Chemed Corp. ................. 850 35,980 Healthways, Inc.*............. 3,120 32,542 inVentiv Health, Inc.*........ 4,161 46,145 LCA-Vision, Inc. ............. 14,602 83,961 LHC Group, Inc.*.............. 750 17,115 Magellan Health Services, Inc.*...................... 1,140 33,698 MEDNAX, Inc..*................ 520 18,668 Molina Healthcare, Inc.*...... 1,060 22,949 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 380,009 ---------- HOTELS, RESTAURANTS & LEISURE 6.2% CEC Entertainment, Inc.*...... 770 23,454 Cracker Barrel Old Country Store, Inc. ............... 1,630 53,154 Monarch Casino & Resort, Inc.*...................... 1,610 16,454 P.F. Chang's China Bistro, Inc.*...................... 720 21,730 Papa John's International, Inc.*...................... 1,170 31,052 Ruth's Hospitality Group Inc*....................... 37,674 136,380 Shuffle Master, Inc.*......... 11,141 42,447 WMS Industries, Inc.*......... 1,010 32,431 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 357,102 ---------- HOUSEHOLD DURABLES 0.7% Meritage Homes Corp.*......... 2,030 42,244 ---------- TOTAL HOUSEHOLD DURABLES 42,244 ---------- INSURANCE 1.6% American Physicians Capital, Inc. ...................... 590 24,580 Amerisafe, Inc.*.............. 1,290 19,814 eHealth, Inc.*................ 2,610 50,086 ---------- TOTAL INSURANCE 94,480 ---------- INTERNET & CATALOG RETAIL 3.1% HSN, Inc.*.................... 1,600 11,056 NutriSystem, Inc. ............ 4,451 61,157 PetMed Express, Inc.*......... 2,670 43,414 Stamps.com, Inc.*............. 6,601 61,785 ---------- TOTAL INTERNET & CATALOG RETAIL 177,412 ---------- INTERNET SOFTWARE & SERVICES 6.3% Bankrate, Inc.*............... 980 24,500 DealerTrack Holdings, Inc.*... 3,731 56,637 InfoSpace, Inc.*.............. 6,571 43,566 j2 Global Communications, Inc.*...................... 2,560 61,414 Knot, Inc.(The)*.............. 5,111 46,357 Perficient, Inc.*............. 8,911 62,110 United Online, Inc. .......... 6,841 36,257 Websense, Inc.*............... 1,880 33,520 ---------- TOTAL INTERNET SOFTWARE & SERVICES 364,361 ---------- IT SERVICES 3.1% CACI International, Inc. -- Class A*........... 350 13,842 Cybersource Corp.*............ 3,420 49,966 Heartland Payment Systems, Inc. ...................... 2,940 23,638 Integral Systems, Inc.*....... 1,060 7,028 Wright Express Corp.*......... 3,720 85,114 ---------- TOTAL IT SERVICES 179,588 ---------- LEISURE EQUIPMENT & PRODUCTS 0.7% Pool Corp. ................... 2,270 40,542 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 40,542 ---------- LIFE SCIENCES TOOLS & SERVICES 0.8% Dionex Corp.*................. 500 31,500 eResearchTechnology, Inc.*.... 3,241 16,432 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 47,932 ---------- MACHINERY 2.4% Actuant Corp. -- Class A...... 2,170 26,604 Astec Industries, Inc.*....... 1,150 35,443 Gardner Denver, Inc.*......... 980 26,088 Mueller Industries, Inc. ..... 1,130 24,826 Toro Co. ..................... 850 25,823 ---------- TOTAL MACHINERY 138,784 ---------- METALS & MINING 1.5% AM Castle & Co. .............. 4,371 42,355 Brush Engineered Materials, Inc.*...................... 2,760 46,699 ---------- TOTAL METALS & MINING 89,054 ---------- OIL, GAS & CONSUMABLE FUELS 2.2% Penn Virginia Corp. .......... 1,280 18,010 Petroleum Development Corp.*.. 2,150 34,851 Petroquest Energy, Inc.*...... 4,111 12,374 St. Mary Land & Exploration Co. ....................... 2,330 41,637 Swift Energy Co.*............. 2,100 22,722 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 129,594 ---------- PAPER & FOREST PRODUCTS 0.2% Deltic Timber Corp. .......... 250 10,535 ---------- TOTAL PAPER & FOREST PRODUCTS 10,535 ---------- PERSONAL PRODUCTS 1.7% Chattem, Inc.*................ 280 15,375 Mannatech, Inc. .............. 19,192 83,869 ---------- TOTAL PERSONAL PRODUCTS 99,244 ---------- PHARMACEUTICALS 0.8% Salix Pharmaceuticals Ltd.*... 1,590 17,490 Viropharma, Inc.*............. 4,991 28,099 ---------- TOTAL PHARMACEUTICALS 45,589 ----------
See Notes to Financial Statements. 36 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS (CONCLUDED) ROAD & RAIL 1.1% Heartland Express, Inc. ...... 1,220 $18,239 Knight Transportation, Inc. .. 1,530 27,050 Old Dominion Freight Line, Inc.*...................... 670 18,861 ---------- TOTAL ROAD & RAIL 64,150 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 7.9% ATMI, Inc.*................... 2,130 33,633 Cymer, Inc.*.................. 570 16,194 Diodes, Inc.*................. 4,461 66,380 Hittite Microwave Corp.*...... 1,700 63,172 Kulicke & Soffa Industries, Inc.*...................... 22,713 90,852 Micrel, Inc. ................. 4,971 37,282 MKS Instruments, Inc.*........ 2,560 40,064 Pericom Semiconductor Corp.*.. 7,831 69,774 Varian Semiconductor Equipment Associates, Inc.*.......... 1,390 35,570 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 452,921 ---------- SOFTWARE 6.5% Blackbaud, Inc. .............. 2,270 34,549 Commvault Systems, Inc.*...... 4,771 59,399 Concur Technologies, Inc.*.... 830 22,468 Ebix, Inc.*................... 920 25,576 Epicor Software Corp.*........ 9,831 54,267 EPIQ Systems, Inc.*........... 1,570 24,288 MICROS Systems, Inc.*......... 980 20,560 Quality Systems, Inc. ........ 1,090 58,446 Smith Micro Software, Inc.*... 6,921 59,521 Tyler Technologies, Inc.*..... 1,010 16,665 ---------- TOTAL SOFTWARE 375,739 ---------- SPECIALTY RETAIL 4.0% Children's Place Retail Stores, Inc.(The)*......... 1,020 29,009 Dress Barn, Inc.*............. 2,240 33,914 Gymboree Corp.*............... 550 18,920 Hibbett Sports, Inc.*......... 1,620 33,777 Jos. A. Bank Clothiers, Inc.*...................... 930 37,609 Tractor Supply Co.*........... 570 23,017 Zumiez, Inc.*................. 4,591 55,367 ---------- TOTAL SPECIALTY RETAIL 231,613 ---------- TEXTILES, APPAREL & LUXURY GOODS 5.6% Carter's, Inc.*............... 540 11,545 Crocs, Inc.*.................. 45,095 101,464 Deckers Outdoor Corp.*........ 360 20,347 Fossil, Inc.*................. 1,070 21,571 K-Swiss, Inc. -- Class A...... 2,420 24,297 Maidenform Brands, Inc.*...... 2,030 25,882 True Religion Apparel, Inc.*.. 5,131 80,865 Volcom, Inc.*................. 2,800 37,773 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 323,744 ---------- TOTAL COMMON STOCKS (Cost $6,613,966) 5,769,796 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 3,266 3,266 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $3,266) 3,266 ---------- TOTAL INVESTMENTS 100.0% (Cost $6,617,232) 5,773,062 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(a) (1,905) ---------- NET ASSETS--100.0% $5,771,157 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 37 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% AUTO COMPONENTS 3.1% Goodyear Tire & Rubber Co.(The)*.................. 8,102 $89,041 Johnson Controls, Inc. ....... 4,223 80,279 ---------- TOTAL AUTO COMPONENTS 169,320 ---------- AUTOMOBILES 4.0% Ford Motor Co.*............... 17,350 103,753 General Motors Corp. ......... 15,011 28,821 Harley-Davidson, Inc. ........ 3,733 82,723 ---------- TOTAL AUTOMOBILES 215,297 ---------- DISTRIBUTORS 1.1% Genuine Parts Co. ............ 1,709 58,038 ---------- TOTAL DISTRIBUTORS 58,038 ---------- DIVERSIFIED CONSUMER SERVICES 1.5% Apollo Group, Inc. -- Class A*......................... 653 41,106 H&R Block, Inc. .............. 2,482 37,578 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 78,684 ---------- HOTELS, RESTAURANTS & LEISURE 13.5% Carnival Corp. ............... 2,226 59,835 Darden Restaurants, Inc. ..... 1,403 51,869 International Game Technology................. 5,172 63,874 Marriott International, Inc. -- Class A............ 3,034 71,481 McDonald's Corp. ............. 892 47,535 Starbucks Corp.*.............. 4,253 61,498 Starwood Hotels & Resorts Worldwide, Inc. ........... 3,862 80,561 Wyndham Worldwide Corp. ...... 11,771 137,485 Wynn Resorts Ltd.*............ 2,316 90,857 Yum! Brands, Inc. ............ 1,784 59,497 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 724,492 ---------- HOUSEHOLD DURABLES 16.9% Black & Decker Corp. ......... 1,834 73,910 Centex Corp. ................. 6,383 69,830 D.R. Horton, Inc. ............ 5,633 73,511 Fortune Brands, Inc. ......... 2,074 81,529 Harman International Industries, Inc. .......... 4,163 75,725 KB HOME....................... 4,215 76,165 Leggett & Platt, Inc. ........ 3,973 57,052 Lennar Corp. -- Class A....... 5,850 56,979 Newell Rubbermaid, Inc. ...... 7,219 75,439 Pulte Homes, Inc. ............ 4,836 55,662 Snap-on, Inc. ................ 1,879 63,736 Stanley Works(The)............ 1,731 65,830 Whirlpool Corp. .............. 1,812 81,830 ---------- TOTAL HOUSEHOLD DURABLES 907,198 ---------- INTERNET & CATALOG RETAIL 2.6% Amazon.com, Inc.*............. 682 54,914 Expedia, Inc.*................ 6,044 82,259 ---------- TOTAL INTERNET & CATALOG RETAIL 137,173 ---------- LEISURE EQUIPMENT & PRODUCTS 2.9% Eastman Kodak Co. ............ 12,643 38,561 Hasbro, Inc. ................. 2,041 54,413 Mattel, Inc. ................. 4,315 64,553 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 157,527 ---------- MEDIA 19.7% CBS Corp. -- Class B.......... 11,575 81,488 Comcast Corp. -- Class A...... 3,734 57,728 DIRECTV Group, Inc.(The)*..... 2,181 53,936 Gannett Co., Inc. ............ 22,152 86,614 Interpublic Group of Cos., Inc.*...................... 11,936 74,719 McGraw-Hill Cos., Inc. ....... 2,509 75,646 Meredith Corp. ............... 3,040 76,243 New York Times Co. -- Class A.......................... 10,749 57,830 News Corp. -- Class A......... 7,810 64,510 Omnicom Group, Inc. .......... 1,993 62,720 Scripps Networks Interactive -- Class A..... 2,261 62,042 Time Warner Cable, Inc. ...... 2,116 68,199 Time Warner, Inc. ............ 2,726 59,508 Viacom, Inc. -- Class B*...... 2,886 55,527 Walt Disney Co.(The).......... 2,723 59,634 Washington Post Co. -- Class B.......................... 140 58,603 ---------- TOTAL MEDIA 1,054,947 ---------- MULTILINE RETAIL 10.2% Big Lots, Inc.*............... 2,413 66,695 Family Dollar Stores, Inc. ... 1,539 51,079 J.C. Penney Co., Inc. ........ 2,753 84,490 Kohl's Corp.*................. 1,173 53,196 Macy's, Inc. ................. 5,703 78,017 Nordstrom, Inc. .............. 3,273 74,068 Sears Holdings Corp.*......... 1,184 73,965 Target Corp. ................. 1,563 64,489 ---------- TOTAL MULTILINE RETAIL 545,999 ---------- SPECIALTY RETAIL 19.7% Abercrombie & Fitch Co. -- Class A............. 2,143 57,990 AutoNation, Inc.*............. 3,652 64,677 AutoZone, Inc.*............... 300 49,917 Bed Bath & Beyond, Inc.*...... 2,050 62,361 Best Buy Co., Inc. ........... 1,472 56,495 GameStop Corp. -- Class A*.... 1,910 57,606 Gap, Inc.(The)................ 3,961 61,554 Home Depot, Inc. ............. 2,146 56,483 Limited Brands, Inc. ......... 5,893 67,298 Lowe's Cos., Inc. ............ 2,787 59,920 O'Reilly Automotive, Inc.*.... 1,402 54,468 Office Depot, Inc.*........... 34,466 89,267 RadioShack Corp. ............. 5,696 80,200 Sherwin-Williams Co.(The)..... 1,054 59,698 Staples, Inc. ................ 2,794 57,612 Tiffany & Co. ................ 2,346 67,893 TJX Cos., Inc. ............... 1,925 53,842 ---------- TOTAL SPECIALTY RETAIL 1,057,281 ---------- TEXTILES, APPAREL & LUXURY GOODS 4.7% Coach, Inc.*.................. 3,157 77,346 NIKE, Inc. -- Class B......... 1,053 55,251 Polo Ralph Lauren Corp. ...... 1,252 67,408 V.F. Corp. ................... 852 50,498 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 250,503 ---------- TOTAL COMMON STOCKS (Cost $6,421,252) 5,356,459 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 4,939 4,939 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $4,939) 4,939 ---------- TOTAL INVESTMENTS 100.0% (Cost $6,426,191) 5,361,398 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (1,216) ---------- NET ASSETS--100.0% $5,360,182 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. 38 RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.5% BEVERAGES 21.4% Brown-Forman Corp. -- Class B.......................... 4,519 $210,133 Coca-Cola Co.(The)............ 4,222 181,757 Coca-Cola Enterprises, Inc. .. 15,176 258,903 Constellation Brands, Inc. -- Class A*........... 13,450 155,886 Dr Pepper Snapple Group, Inc.*...................... 12,203 252,724 Molson Coors Brewing Co. -- Class B............. 5,390 206,167 Pepsi Bottling Group, Inc. ... 8,899 278,272 PepsiCo, Inc. ................ 3,644 181,325 ---------- TOTAL BEVERAGES 1,725,167 ---------- FOOD & STAPLES RETAILING 22.0% Costco Wholesale Corp. ....... 3,931 191,047 CVS Caremark Corp. ........... 6,670 211,972 Kroger Co.(The)............... 8,451 182,711 Safeway, Inc. ................ 9,025 178,244 SUPERVALU, Inc. .............. 11,796 192,865 Sysco Corp. .................. 7,710 179,874 Wal-Mart Stores, Inc. ........ 3,547 178,769 Walgreen Co. ................. 7,406 232,770 Whole Foods Market, Inc. ..... 10,948 226,952 ---------- TOTAL FOOD & STAPLES RETAILING 1,775,204 ---------- FOOD PRODUCTS 32.2% Archer-Daniels-Midland Co. ... 6,276 154,515 Campbell Soup Co. ............ 6,747 173,533 ConAgra Foods, Inc. .......... 12,281 217,374 Dean Foods Co.*............... 8,908 184,396 General Mills, Inc. .......... 3,752 190,189 H.J. Heinz Co. ............... 5,310 182,770 Hershey Co.(The).............. 5,082 183,663 Hormel Foods Corp. ........... 5,782 180,919 J.M. Smucker Co.(The)......... 4,899 193,021 Kellogg Co. .................. 4,834 203,560 Kraft Foods, Inc. -- Class A.. 8,019 187,645 McCormick & Co., Inc. ........ 5,516 162,446 Sara Lee Corp. ............... 21,914 182,324 Tyson Foods, Inc. -- Class A.. 18,882 199,016 ---------- TOTAL FOOD PRODUCTS 2,595,371 ---------- HOUSEHOLD PRODUCTS 9.4% Clorox Co. ................... 3,565 199,818 Colgate-Palmolive Co. ........ 3,097 182,723 Kimberly-Clark Corp. ......... 3,807 187,076 Procter & Gamble Co. ......... 3,819 188,812 ---------- TOTAL HOUSEHOLD PRODUCTS 758,429 ---------- PERSONAL PRODUCTS 5.5% Avon Products, Inc. .......... 9,561 217,608 Estee Lauder Cos., Inc -- Class A............. 7,491 223,981 ---------- TOTAL PERSONAL PRODUCTS 441,589 ---------- TOBACCO 9.0% Altria Group, Inc. ........... 10,660 174,078 Lorillard, Inc. .............. 2,958 186,739 Philip Morris International, Inc. ...................... 4,806 173,977 Reynolds American, Inc. ...... 4,932 187,317 ---------- TOTAL TOBACCO 722,111 ---------- TOTAL COMMON STOCKS (Cost $9,600,869) 8,017,871 ---------- SHORT TERM INVESTMENTS 0.4% SSgA Government Money Market Fund....................... 32,399 32,399 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $32,399) 32,399 ---------- TOTAL INVESTMENTS 99.9% (Cost $9,633,268) 8,050,270 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 5,557 ---------- NET ASSETS--100.0% $8,055,827 -----------------------------------------------------
*Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 39 RYDEX S&P EQUAL WEIGHT ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% ENERGY EQUIPMENT & SERVICES 29.6% Baker Hughes, Inc. ........... 4,117 $146,483 BJ Services Co. .............. 12,484 173,403 Cameron International Corp.*.. 5,654 144,629 Diamond Offshore Drilling, Inc. ...................... 1,926 139,462 ENSCO International, Inc. .... 4,545 128,533 Halliburton Co. .............. 7,589 153,449 Nabors Industries, Ltd.*...... 12,365 188,072 National-Oilwell Varco, Inc.*...................... 4,221 127,812 Rowan Cos., Inc. ............. 9,486 148,076 Schlumberger, Ltd. ........... 3,074 150,595 Smith International, Inc. .... 5,534 143,054 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 1,643,568 ---------- OIL, GAS & CONSUMABLE FUELS 70.2% Anadarko Petroleum Corp. ..... 3,143 135,338 Apache Corp. ................. 1,973 143,753 Cabot Oil & Gas Corp. ........ 5,085 153,516 Chesapeake Energy Corp. ...... 7,244 142,779 Chevron Corp. ................ 1,971 130,283 ConocoPhillips................ 3,383 138,703 CONSOL Energy, Inc. .......... 4,448 139,133 Denbury Resources, Inc.*...... 8,384 136,492 Devon Energy Corp. ........... 2,685 139,217 El Paso Corp. ................ 19,232 132,701 EOG Resources, Inc. .......... 2,062 130,896 Exxon Mobil Corp. ............ 1,935 129,006 Hess Corp. ................... 2,070 113,415 Marathon Oil Corp. ........... 5,265 156,370 Massey Energy Co. ............ 11,232 178,701 Murphy Oil Corp. ............. 2,669 127,338 Noble Energy, Inc. ........... 2,460 139,605 Occidental Petroleum Corp. ... 2,249 126,596 Peabody Energy Corp. ......... 4,760 125,616 Pioneer Natural Resources Co. ....................... 7,671 177,354 Range Resources Corp. ........ 3,111 124,347 Southwestern Energy Co.*...... 4,139 148,425 Spectra Energy Corp. ......... 9,103 131,993 Sunoco, Inc. ................. 4,754 126,029 Tesoro Corp. ................. 9,155 139,614 Valero Energy Corp. .......... 7,086 140,586 Williams Cos., Inc. .......... 10,880 153,408 XTO Energy, Inc. ............. 3,892 134,897 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 3,896,111 ---------- TOTAL COMMON STOCKS (Cost $8,029,253) 5,539,679 ---------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund....................... 9,322 9,322 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $9,322) 9,322 ---------- TOTAL INVESTMENTS 100.0% (Cost $8,038,575) 5,549,001 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(a) 12 ---------- NET ASSETS--100.0% $5,549,013 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. 40 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% CAPITAL MARKETS 17.1% Ameriprise Financial, Inc. ... 4,376 $115,308 Bank of New York Mellon Corp. ..................... 3,400 86,632 Charles Schwab Corp.(The)..... 6,211 114,779 E*TRADE Financial Corp.*...... 72,312 103,406 Federated Investors, Inc. -- Class B............ 4,123 94,334 Franklin Resources, Inc. ..... 1,797 108,683 Goldman Sachs Group, Inc.(The).................. 856 109,996 Invesco Ltd. ................. 7,050 103,776 Janus Capital Group, Inc. .... 14,918 149,628 Legg Mason, Inc. ............. 6,068 121,785 Morgan Stanley................ 4,036 95,411 Northern Trust Corp. ......... 1,498 81,431 State Street Corp. ........... 3,227 110,137 T. Rowe Price Group, Inc. .... 3,348 128,965 ---------- TOTAL CAPITAL MARKETS 1,524,271 ---------- COMMERCIAL BANKS 16.7% BB&T Corp. ................... 4,827 112,662 Comerica, Inc. ............... 4,549 95,438 Fifth Third Bancorp........... 39,920 163,672 First Horizon National Corp. ..................... 8,116 93,415 Huntington Bancshares, Inc. .. 47,132 131,498 KeyCorp....................... 10,657 65,541 M&T Bank Corp. ............... 2,104 110,355 Marshall & Ilsley Corp. ...... 16,281 94,104 PNC Financial Services Group, Inc. ...................... 2,994 118,862 Regions Financial Corp. ...... 19,951 89,580 SunTrust Banks, Inc. ......... 6,739 97,311 U.S. Bancorp.................. 6,020 109,684 Wells Fargo & Co. ............ 5,679 113,637 Zions Bancorp................. 8,170 89,298 ---------- TOTAL COMMERCIAL BANKS 1,485,057 ---------- CONSUMER FINANCE 5.6% American Express Co. ......... 6,577 165,872 Capital One Financial Corp. .. 7,059 118,168 Discover Financial Services... 14,196 115,413 SLM Corp.*.................... 19,677 95,040 ---------- TOTAL CONSUMER FINANCE 494,493 ---------- DIVERSIFIED FINANCIAL SERVICES 11.7% Bank of America Corp. ........ 12,741 113,777 CIT Group, Inc. .............. 34,816 77,291 Citigroup, Inc. .............. 32,539 99,244 CME Group, Inc. .............. 372 82,342 IntercontinentalExchange, Inc.*...................... 1,143 100,127 JPMorgan Chase & Co. ......... 3,468 114,444 Leucadia National Corp.*...... 6,599 140,097 Moody's Corp. ................ 4,445 131,216 Nasdaq OMX Group (The)*....... 4,011 77,132 NYSE Euronext................. 4,570 105,887 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 1,041,557 ---------- INSURANCE 26.0% AFLAC, Inc. .................. 4,360 125,960 Allstate Corp. ............... 4,519 105,428 American International Group, Inc. ...................... 58,909 81,294 Aon Corp. .................... 2,170 91,574 Assurant, Inc. ............... 3,907 95,487 Chubb Corp. .................. 2,042 79,536 Cincinnati Financial Corp. ... 3,964 94,938 Genworth Financial, Inc. -- Class A............ 47,325 111,687 Hartford Financial Services Group, Inc. ............... 10,656 122,224 Lincoln National Corp. ....... 10,878 122,269 Loews Corp. .................. 3,707 92,267 Marsh & McLennan Cos., Inc. .. 4,235 89,316 MBIA, Inc.*................... 19,365 91,597 MetLife, Inc. ................ 3,865 114,984 Principal Financial Group, Inc. ...................... 11,305 184,724 Progressive Corp.*............ 6,536 99,870 Prudential Financial, Inc. ... 4,717 136,227 Torchmark Corp. .............. 3,268 95,850 Travelers Cos., Inc.(The)..... 2,161 88,904 Unum Group.................... 7,093 115,900 XL Capital, Ltd. -- Class A... 18,218 173,253 ---------- TOTAL INSURANCE 2,313,289 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) 18.0% Apartment Investment & Management Co. -- Class A.. 15,779 115,187 AvalonBay Communities, Inc. .. 1,784 101,349 Boston Properties, Inc. ...... 2,249 111,146 Equity Residential............ 4,619 105,729 HCP, Inc. .................... 4,693 103,011 Health Care REIT, Inc. ....... 2,715 92,500 Host Hotels & Resorts, Inc. .. 20,566 158,152 Kimco Realty Corp. ........... 10,676 128,325 Plum Creek Timber Co., Inc. .. 3,089 106,632 ProLogis...................... 14,214 129,490 Public Storage, Inc. ......... 1,558 104,168 Simon Property Group, Inc. ... 2,481 128,020 Ventas, Inc. ................. 3,671 105,137 Vornado Realty Trust.......... 2,421 118,363 ---------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,607,209 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT 2.8% CB Richard Ellis Group, Inc. -- Class A*........... 33,089 248,168 ---------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 248,168 ---------- THRIFTS & MORTGAGE FINANCE 1.9% Hudson City Bancorp, Inc. .... 7,548 94,803 People's United Financial, Inc. ...................... 4,995 78,022 ---------- TOTAL THRIFTS & MORTGAGE FINANCE 172,825 ---------- TOTAL COMMON STOCKS (Cost $11,930,827) 8,886,869 ---------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund....................... 21,283 21,283 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $21,283) 21,283 ---------- TOTAL INVESTMENTS 100.0% (Cost $11,952,110) 8,908,152 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,644 ---------- NET ASSETS--100.0% $8,909,796 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 41 RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 100.0% BIOTECHNOLOGY 9.8% Amgen, Inc.*................. 12,840 $622,355 Biogen Idec, Inc.*........... 12,401 599,465 Celgene Corp.*............... 13,728 586,460 Cephalon, Inc.*.............. 9,371 614,831 Genzyme Corp.*............... 11,452 610,735 Gilead Sciences, Inc.*....... 14,159 648,482 ----------- TOTAL BIOTECHNOLOGY 3,682,328 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 24.5% Baxter International, Inc. .. 12,506 606,541 Becton, Dickinson & Co. ..... 9,815 593,611 Boston Scientific Corp.*..... 80,856 679,999 C.R. Bard, Inc. ............. 8,173 585,432 Covidien, Ltd. .............. 20,008 659,864 Dentsply International, Inc. ..................... 25,332 725,002 Hospira, Inc.*............... 24,875 817,641 Intuitive Surgical, Inc.*.... 6,468 929,646 Medtronic, Inc. ............. 22,513 720,416 St Jude Medical, Inc.*....... 17,673 592,399 Stryker Corp. ............... 19,915 770,910 Varian Medical Systems, Inc.*..................... 21,149 705,742 Zimmer Holdings, Inc.*....... 17,847 785,089 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 9,172,292 ----------- HEALTH CARE PROVIDERS & SERVICES 32.0% Aetna, Inc. ................. 26,491 583,067 AmerisourceBergen Corp. ..... 20,589 692,614 Cardinal Health, Inc. ....... 19,983 675,226 CIGNA Corp. ................. 35,270 695,172 Coventry Health Care, Inc.*.. 53,485 850,946 DaVita, Inc.*................ 13,995 648,948 Express Scripts, Inc.*....... 13,492 863,083 Humana, Inc.*................ 24,673 710,089 Laboratory Corp. of America Holdings*................. 11,068 710,012 McKesson Corp. .............. 17,485 646,945 Medco Health Solutions, Inc.*..................... 16,183 704,770 Patterson Cos., Inc.*........ 34,787 711,742 Quest Diagnostics, Inc. ..... 14,127 725,139 Tenet Healthcare Corp.*...... 599,095 1,347,964 UnitedHealth Group, Inc. .... 29,503 693,910 WellPoint, Inc.*............. 17,376 742,998 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 12,002,625 ----------- HEALTH CARE TECHNOLOGY 1.8% IMS Health, Inc. ............ 52,533 659,815 ----------- TOTAL HEALTH CARE TECHNOLOGY 659,815 ----------- LIFE SCIENCES TOOLS & SERVICES 9.8% Life Technologies Corp.*..... 20,367 759,689 Millipore Corp.*............. 11,068 654,119 PerkinElmer, Inc. ........... 52,330 762,448 Thermo Fisher Scientific Inc.*..................... 18,646 654,102 Waters Corp.*................ 19,379 855,970 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 3,686,328 ----------- PHARMACEUTICALS 22.1% Abbott Laboratories.......... 13,196 552,253 Allergan, Inc. .............. 15,633 729,436 Bristol-Myers Squibb Co. .... 30,145 578,784 Eli Lilly & Co. ............. 19,679 647,833 Forest Laboratories, Inc.*... 29,674 643,629 Johnson & Johnson, Inc. ..... 12,508 654,919 King Pharmaceuticals, Inc.*.. 90,376 712,163 Merck & Co., Inc. ........... 24,052 583,020 Mylan Inc.*.................. 47,560 630,170 Pfizer, Inc. ................ 45,801 611,901 Schering-Plough Corp. ....... 27,219 626,581 Watson Pharmaceuticals, Inc.*..................... 22,531 697,109 Wyeth........................ 14,840 629,216 ----------- TOTAL PHARMACEUTICALS 8,297,014 ----------- TOTAL COMMON STOCKS (Cost $48,914,270) 37,500,402 ----------- SHORT TERM INVESTMENTS 0.0%(A) SSgA Government Money Market Fund...................... 11,076 11,076 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $11,076) 11,076 ----------- TOTAL INVESTMENTS 100.0% (Cost $48,925,346) 37,511,478 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,589) ----------- NET ASSETS--100.0% $37,508,889 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. 42 RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.8% AEROSPACE & DEFENSE 19.7% Boeing Co. ................... 4,931 $197,487 General Dynamics Corp. ....... 4,252 219,701 Goodrich Corp. ............... 4,301 190,448 Honeywell International, Inc. ...................... 5,926 184,950 ITT Corp. .................... 4,246 174,128 L-3 Communications Holdings, Inc. ...................... 2,520 191,898 Lockheed Martin Corp. ........ 2,362 185,488 Northrop Grumman Corp. ....... 4,198 202,973 Precision Castparts Corp. .... 2,794 209,159 Raytheon Co. ................. 4,540 205,344 Rockwell Collins, Inc. ....... 5,116 196,199 United Technologies Corp. .... 3,970 193,895 ----------- TOTAL AEROSPACE & DEFENSE 2,351,670 ----------- AIR FREIGHT & LOGISTICS 6.7% C.H. Robinson Worldwide, Inc. ...................... 3,648 193,928 Expeditors International of Washington, Inc. .......... 5,836 202,567 FedEx Corp. .................. 3,824 213,991 United Parcel Service, Inc. -- Class B............ 3,584 187,587 ----------- TOTAL AIR FREIGHT & LOGISTICS 798,073 ----------- AIRLINES 1.7% Southwest Airlines Co. ....... 28,607 199,677 ----------- TOTAL AIRLINES 199,677 ----------- BUILDING PRODUCTS 1.8% Masco Corp. .................. 24,255 214,899 ----------- TOTAL BUILDING PRODUCTS 214,899 ----------- COMMERCIAL SERVICES & SUPPLIES 21.0% Avery Dennison Corp. ......... 7,591 218,165 Cintas Corp. ................. 7,021 180,159 Dun & Bradstreet Corp. ....... 2,170 176,638 Equifax, Inc. ................ 7,204 210,069 Iron Mountain, Inc.*.......... 7,585 216,097 Monster Worldwide, Inc.*...... 21,651 298,784 Pitney Bowes, Inc. ........... 7,366 180,762 R.R. Donnelley & Sons Co. .... 22,613 263,441 Republic Services, Inc. ...... 9,434 198,114 Robert Half International, Inc. ...................... 9,576 230,015 Stericycle, Inc.*............. 3,403 160,213 Waste Management, Inc. ....... 6,381 170,181 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 2,502,638 ----------- CONSTRUCTION & ENGINEERING 2.7% Fluor Corp. .................. 4,334 164,129 Jacobs Engineering Group, Inc.*...................... 4,289 163,153 ----------- TOTAL CONSTRUCTION & ENGINEERING 327,282 ----------- ELECTRICAL EQUIPMENT 5.4% Cooper Industries, Ltd. -- Class A............ 6,690 219,365 Emerson Electric Co. ......... 5,982 203,627 Rockwell Automation, Inc. .... 7,084 223,784 ----------- TOTAL ELECTRICAL EQUIPMENT 646,776 ----------- INDUSTRIAL CONGLOMERATES 5.9% 3M Co. ....................... 3,482 200,563 General Electric Co. ......... 16,784 212,318 Textron, Inc. ................ 26,949 289,163 ----------- TOTAL INDUSTRIAL CONGLOMERATES 702,044 ----------- MACHINERY 23.3% Caterpillar, Inc. ............ 5,869 208,819 Cummins, Inc. ................ 6,818 231,812 Danaher Corp. ................ 2,991 174,794 Deere & Co. .................. 5,210 214,965 Dover Corp. .................. 6,379 196,346 Eaton Corp. .................. 4,692 205,510 Flowserve Corp. .............. 2,870 194,873 Illinois Tool Works, Inc. .... 5,760 188,928 Ingersoll-Rand Co., Ltd. -- Class A............ 11,507 250,507 Manitowoc Co., Inc. .......... 39,824 236,953 PACCAR, Inc. ................. 6,346 224,902 Pall Corp. ................... 8,000 211,280 Parker-Hannifin Corp. ........ 5,076 230,196 ----------- TOTAL MACHINERY 2,769,885 ----------- ROAD & RAIL 8.1% Burlington Northern Santa Fe Corp. ..................... 2,910 196,367 CSX Corp. .................... 6,596 195,175 Norfolk Southern Corp. ....... 5,254 187,463 Ryder System, Inc. ........... 6,352 175,887 Union Pacific Corp. .......... 4,149 203,882 ----------- TOTAL ROAD & RAIL 958,774 ----------- TRADING COMPANIES & DISTRIBUTORS 3.5% Fastenal Co. ................. 5,520 211,747 W.W. Grainger, Inc. .......... 2,411 202,235 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 413,982 ----------- TOTAL COMMON STOCKS (Cost $12,865,446) 11,885,700 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 11,662 11,662 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $11,662) 11,662 ----------- TOTAL INVESTMENTS 99.9% (Cost $12,877,108) 11,897,362 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 14,608 ----------- NET ASSETS--100.0% $11,911,970 ------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 43 RYDEX S&P EQUAL WEIGHT MATERIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% CHEMICALS 37.7% Air Products & Chemicals, Inc. ...................... 2,666 $175,689 CF Industries Holdings, Inc. ...................... 2,177 156,853 Dow Chemical Co.(The)......... 19,150 306,400 Du Pont (E.I.) de Nemours & Co. ....................... 7,126 198,815 Eastman Chemical Co. ......... 6,092 241,731 Ecolab, Inc. ................. 4,556 175,634 International Flavors & Fragrances, Inc. .......... 5,142 160,430 Monsanto Co. ................. 1,834 155,688 PPG Industries, Inc. ......... 4,243 186,904 Praxair, Inc. ................ 2,328 173,692 Sigma-Aldrich Corp. .......... 4,103 179,876 ---------- TOTAL CHEMICALS 2,111,712 ---------- CONSTRUCTION MATERIALS 3.2% Vulcan Materials Co. ......... 3,805 180,928 ---------- TOTAL CONSTRUCTION MATERIALS 180,928 ---------- CONTAINERS & PACKAGING 19.3% Ball Corp. ................... 3,559 134,245 Bemis Co., Inc. .............. 7,332 176,261 Owens-Illinois, Inc.*......... 12,059 294,119 Pactiv Corp.*................. 11,893 259,981 Sealed Air Corp. ............. 11,408 217,437 ---------- TOTAL CONTAINERS & PACKAGING 1,082,043 ---------- METALS & MINING 27.8% AK Steel Holding Corp. ....... 21,258 276,567 Alcoa, Inc. .................. 22,695 205,844 Allegheny Technologies, Inc. ...................... 7,152 234,085 Freeport-McMoRan Copper & Gold, Inc. ................ 3,775 161,004 Newmont Mining Corp. ......... 3,369 135,568 Nucor Corp. .................. 3,933 160,034 Titanium Metals Corp. ........ 27,414 186,141 United States Steel Corp. .... 7,459 198,036 ---------- TOTAL METALS & MINING 1,557,279 ---------- PAPER & FOREST PRODUCTS 11.9% International Paper Co. ...... 20,785 263,138 MeadWestvaco Corp. ........... 13,092 205,021 Weyerhaeuser Co. ............. 5,546 195,552 ---------- TOTAL PAPER & FOREST PRODUCTS 663,711 ---------- TOTAL COMMON STOCKS (Cost $6,315,102) 5,595,673 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 7,948 7,948 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $7,948) 7,948 ---------- TOTAL INVESTMENTS 100.0% (Cost $6,323,050) 5,603,621 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 138 ---------- NET ASSETS--100.0% $5,603,759 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. 44 RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% COMMUNICATIONS EQUIPMENT 12.8% Ciena Corp.*.................. 12,790 $152,841 Cisco Systems, Inc.*.......... 5,740 110,897 Corning, Inc. ................ 7,200 105,264 Harris Corp. ................. 2,860 87,459 JDS Uniphase Corp.*........... 27,970 128,942 Juniper Networks, Inc.*....... 5,950 128,818 Motorola, Inc. ............... 22,880 126,526 QUALCOMM, Inc. ............... 2,470 104,530 Tellabs, Inc.*................ 21,710 113,760 ---------- TOTAL COMMUNICATIONS EQUIPMENT 1,059,037 ---------- COMPUTERS & PERIPHERALS 14.6% Apple, Inc.*.................. 920 115,764 Dell, Inc.*................... 9,280 107,834 EMC Corp.*.................... 8,110 101,618 Hewlett-Packard Co. .......... 3,200 115,136 International Business Machines Corp. ............ 1,000 103,210 Lexmark International, Inc. -- Class A*........... 5,530 108,499 NetApp, Inc.*................. 5,950 108,885 QLogic Corp.*................. 8,270 117,268 SanDisk Corp.*................ 8,780 138,021 Sun Microsystems, Inc.*....... 10,790 98,836 Teradata Corp.*............... 5,540 92,629 ---------- TOTAL COMPUTERS & PERIPHERALS 1,207,700 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 9.4% Agilent Technologies, Inc.*... 6,320 115,403 Amphenol Corp. -- Class A..... 3,290 111,334 FLIR Systems, Inc.*........... 4,400 97,592 Jabil Circuit, Inc. .......... 21,860 177,066 Molex, Inc. .................. 7,150 119,191 Tyco Electronics, Ltd. ....... 8,830 153,995 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 774,581 ---------- INTERNET SOFTWARE & SERVICES 6.5% Akamai Technologies, Inc.*.... 4,880 107,458 eBay, Inc.*................... 7,610 125,337 Google, Inc. -- Class A*...... 280 110,872 VeriSign, Inc.*............... 4,680 96,314 Yahoo!, Inc.*................. 6,780 96,886 ---------- TOTAL INTERNET SOFTWARE & SERVICES 536,867 ---------- IT SERVICES 14.0% Affiliated Computer Services, Inc. -- Class A*........... 1,990 96,276 Automatic Data Processing, Inc. ...................... 2,540 89,408 Cognizant Technology Solutions Corp. -- Class A*.......... 4,310 106,845 Computer Sciences Corp.*...... 2,630 97,205 Convergys Corp.*.............. 12,900 130,419 Fidelity National Information Services, Inc. ............ 5,280 94,248 Fiserv, Inc.*................. 2,690 100,391 Mastercard, Inc. -- Class A... 600 110,070 Paychex, Inc. ................ 4,020 108,580 Total System Services, Inc. .. 7,060 88,038 Western Union Co. ............ 7,790 130,483 ---------- TOTAL IT SERVICES 1,151,963 ---------- OFFICE ELECTRONICS 1.3% Xerox Corp. .................. 17,440 106,558 ---------- TOTAL OFFICE ELECTRONICS 106,558 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 23.1% Advanced Micro Devices, Inc.*...................... 31,460 113,571 Altera Corp. ................. 5,340 87,095 Analog Devices, Inc. ......... 4,590 97,675 Applied Materials, Inc. ...... 8,700 106,227 Broadcom Corp. -- Class A*.... 4,730 109,689 Intel Corp. .................. 6,150 97,047 KLA-Tencor Corp. ............. 4,520 125,385 Linear Technology Corp. ...... 4,030 87,773 LSI Corp.*.................... 28,740 110,362 MEMC Electronic Materials, Inc.*...................... 6,000 97,200 Microchip Technology, Inc. ... 4,470 102,810 Micron Technology, Inc.*...... 25,380 123,854 National Semiconductor Corp. ..................... 8,580 106,135 Novellus Systems, Inc.*....... 6,340 114,500 NVIDIA Corp.*................. 9,240 106,075 Teradyne, Inc.*............... 20,880 124,027 Texas Instruments, Inc. ...... 5,610 101,317 Xilinx, Inc. ................. 4,680 95,659 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1,906,401 ---------- SOFTWARE 18.2% Adobe Systems, Inc.*.......... 4,380 119,793 Autodesk, Inc.*............... 6,710 133,797 BMC Software, Inc.*........... 2,940 101,930 CA, Inc. ..................... 5,610 96,773 Citrix Systems, Inc.*......... 3,900 111,267 Compuware Corp.*.............. 16,280 121,774 Electronic Arts, Inc.*........ 4,920 100,122 Intuit, Inc.*................. 3,490 80,724 McAfee, Inc.*................. 2,950 110,743 Microsoft Corp. .............. 5,430 110,012 Novell, Inc.*................. 21,410 80,502 Oracle Corp. ................. 5,360 103,662 Salesforce.com, Inc.*......... 2,620 112,162 Symantec Corp.*............... 6,570 113,332 ---------- TOTAL SOFTWARE 1,496,593 ---------- TOTAL COMMON STOCKS (Cost $12,452,566) 8,239,700 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 8,257 8,257 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $8,257) 8,257 ---------- TOTAL INVESTMENTS 100.0% (Cost $12,460,823) 8,247,957 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,369) ---------- NET ASSETS--100.0% $8,245,588 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 45 RYDEX S&P EQUAL WEIGHT UTILITIES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.3% DIVERSIFIED TELECOMMUNICATION SERVICES 16.1% AT&T, Inc. ................... 4,900 $125,538 CenturyTel, Inc. ............. 4,740 128,691 Embarq Corp. ................. 3,520 128,691 Frontier Communications Corp. ..................... 18,830 133,881 Qwest Communications International, Inc. ....... 36,500 141,985 Verizon Communications, Inc. ...................... 4,140 125,608 Windstream Corp. ............. 15,680 130,144 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 914,538 ---------- ELECTRIC UTILITIES 30.9% Allegheny Energy, Inc. ....... 5,290 137,117 American Electric Power Co., Inc. ...................... 4,470 117,919 Duke Energy Corp. ............ 8,840 122,080 Edison International.......... 4,310 122,878 Entergy Corp. ................ 1,860 120,472 Exelon Corp. ................. 2,800 129,164 FirstEnergy Corp. ............ 3,140 128,426 FPL Group, Inc. .............. 2,510 135,013 Northeast Utilities........... 5,790 121,706 Pepco Holdings, Inc. ......... 10,310 123,205 Pinnacle West Capital Corp. .. 4,760 130,329 PPL Corp. .................... 4,330 129,510 Progress Energy, Inc. ........ 3,560 121,467 Southern Co. ................. 4,140 119,563 ---------- TOTAL ELECTRIC UTILITIES 1,758,849 ---------- GAS UTILITIES 6.3% EQT Corp. .................... 3,740 125,776 Nicor, Inc. .................. 3,720 119,561 Questar Corp. ................ 3,920 116,502 ---------- TOTAL GAS UTILITIES 361,839 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 7.3% AES Corp.(The)*............... 18,990 134,259 Constellation Energy Group, Inc. ...................... 6,380 153,631 Dynegy, Inc. -- Class A*...... 71,530 127,323 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 415,213 ---------- MULTI-UTILITIES 33.7% Ameren Corp. ................. 5,700 131,214 CenterPoint Energy, Inc. ..... 12,060 128,318 CMS Energy Corp. ............. 10,490 126,090 Consolidated Edison, Inc. .... 3,300 122,529 Dominion Resources, Inc. ..... 4,020 121,243 DTE Energy Co. ............... 4,590 135,726 Integrys Energy Group, Inc. .. 4,830 127,560 NiSource, Inc. ............... 12,920 141,991 PG&E Corp. ................... 3,270 121,382 Public Service Enterprise Group, Inc. ............... 4,460 133,087 SCANA Corp. .................. 4,180 126,320 Sempra Energy................. 2,900 133,458 TECO Energy, Inc. ............ 11,320 119,879 Wisconsin Energy Corp. ....... 3,150 125,874 Xcel Energy, Inc. ............ 6,890 127,052 ---------- TOTAL MULTI-UTILITIES 1,921,723 ---------- WIRELESS TELECOMMUNICATION SERVICES 5.0% American Tower Corp. -- Class A*......................... 4,060 128,945 Sprint Nextel Corp.*.......... 36,080 157,309 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 286,254 ---------- TOTAL COMMON STOCKS (Cost $7,211,574) 5,658,416 ---------- SHORT TERM INVESTMENTS 0.5% SSgA Government Money Market Fund....................... 28,010 28,010 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $28,010) 28,010 ---------- TOTAL INVESTMENTS 99.8% (Cost $7,239,584) 5,686,426 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.2% 10,553 ---------- NET ASSETS--100.0% $5,696,979 -----------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. 46 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX S&P RYDEX S&P S&P MIDCAP S&P MIDCAP 500 PURE 500 PURE 400 PURE 400 PURE VALUE ETF GROWTH ETF VALUE ETF GROWTH ETF ------------ ----------- ----------- ----------- ASSETS Investments at Market Value*............... $ 13,836,652 $31,221,539 $ 8,356,548 $19,053,104 Receivables: Fund Shares Sold......................... -- -- -- 2,096,010 Dividends................................ 16,473 16,335 11,548 2,220 ------------ ----------- ----------- ----------- TOTAL ASSETS.......................... 13,853,125 31,237,874 8,368,096 21,151,334 ------------ ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased.................... -- -- -- 2,095,655 Accrued Management Fees.................. 6,392 15,031 3,933 7,179 ------------ ----------- ----------- ----------- TOTAL LIABILITIES..................... 6,392 15,031 3,933 2,102,834 ------------ ----------- ----------- ----------- NET ASSETS................................. $ 13,846,733 $31,222,843 $ 8,364,163 $19,048,500 ============ =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital............................ $ 31,192,933 $45,127,268 $17,283,861 $27,004,513 Undistributed Net Investment Income........ 3,654 11,451 19,769 3,228 Accumulated Net Realized Loss on Investment Securities............................... (12,303,026) (7,669,643) (7,453,404) (5,750,621) Net Unrealized Depreciation on Investment Securities............................... (5,046,828) (6,246,233) (1,486,063) (2,208,620) ------------ ----------- ----------- ----------- NET ASSETS................................. $ 13,846,733 $31,222,843 $ 8,364,163 $19,048,500 ============ =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value................ 902,049 1,250,191 450,320 450,017 ============ =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share............... $ 15.35 $ 24.97 $ 18.57 $ 42.33 ============ =========== =========== =========== *Total Cost of Investments................. $ 18,883,480 $37,467,772 $ 9,842,611 $21,261,724 ============ =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 47 STATEMENTS OF ASSETS AND LIABILITIES (continued) April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX S&P S&P EQUAL S&P SMALLCAP SMALLCAP RYDEX S&P EQUAL WEIGHT 600 PURE 600 PURE WEIGHT CONSUMER CONSUMER VALUE ETF GROWTH ETF DISCRETIONARY ETF STAPLES ETF ------------ ----------- ----------------- ----------- ASSETS Investments at Market Value*............ $ 23,694,006 $ 5,773,062 $ 5,361,398 $ 8,050,270 Receivables: Dividends............................. 21,322 950 2,325 13,144 ------------ ----------- ----------- ----------- TOTAL ASSETS....................... 23,715,328 5,774,012 5,363,723 8,063,414 ------------ ----------- ----------- ----------- LIABILITIES Payables: Accrued Management Fees............... 9,267 2,855 3,541 7,587 ------------ ----------- ----------- ----------- TOTAL LIABILITIES.................. 9,267 2,855 3,541 7,587 ------------ ----------- ----------- ----------- NET ASSETS.............................. $ 23,706,061 $ 5,771,157 $ 5,360,182 $ 8,055,827 ============ =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital......................... $ 39,454,600 $ 8,837,234 $ 9,111,515 $10,068,307 Undistributed Net Investment Income..... 54,707 1,107 1,158 21,594 Accumulated Net Realized Loss on Investment Securities................. (17,601,490) (2,223,014) (2,687,698) (451,076) Net Unrealized Appreciation (Depreciation) on Investment Securities............................ 1,798,244 (844,170) (1,064,793) (1,582,998) ------------ ----------- ----------- ----------- NET ASSETS.............................. $ 23,706,061 $ 5,771,157 $ 5,360,182 $ 8,055,827 ============ =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value............. 1,100,040 200,004 200,000 200,000 ============ =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share............ $ 21.55 $ 28.86 $ 26.80 $ 40.28 ============ =========== =========== =========== *Total Cost of Investments.............. $ 21,895,762 $ 6,617,232 $ 6,426,191 $ 9,633,268 ============ =========== =========== ===========
See Notes to Financial Statements. 48 STATEMENTS OF ASSETS AND LIABILITIES (continued) April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT ENERGY ETF FINANCIALS ETF HEALTH CARE ETF INDUSTRIALS ETF ------------ -------------- --------------- --------------- ASSETS Investments at Market Value*............. $ 5,549,001 $ 8,908,152 $ 37,511,478 $11,897,362 Receivables: Investments Sold....................... 1,883,847 -- -- -- Dividends.............................. 6,533 7,367 25,502 21,361 ----------- ----------- ------------ ----------- TOTAL ASSETS........................ 7,439,381 8,915,519 37,536,980 11,918,723 ----------- ----------- ------------ ----------- LIABILITIES Payables: Fund Shares Repurchased................ 1,884,824 -- -- -- Accrued Management Fees................ 5,544 5,723 28,091 6,753 ----------- ----------- ------------ ----------- TOTAL LIABILITIES................... 1,890,368 5,723 28,091 6,753 ----------- ----------- ------------ ----------- NET ASSETS............................... $ 5,549,013 $ 8,909,796 $ 37,508,889 $11,911,970 =========== =========== ============ =========== NET ASSETS CONSIST OF: Paid-in Capital.......................... $ 9,531,544 $16,670,449 $ 52,880,180 $13,780,169 Undistributed Net Investment Income...... 4,722 4,129 14,870 17,445 Accumulated Net Realized Loss on Investment Securities.................. (1,497,679) (4,720,824) (3,972,293) (905,898) Net Unrealized Depreciation on Investment Securities............................. (2,489,574) (3,043,958) (11,413,868) (979,746) ----------- ----------- ------------ ----------- NET ASSETS............................... $ 5,549,013 $ 8,909,796 $ 37,508,889 $11,911,970 =========== =========== ============ =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.............. 150,005 550,000 900,000 350,000 =========== =========== ============ =========== Net Asset Value, Offering Price and Repurchase Price Per Share............. $ 36.99 $ 16.20 $ 41.68 $ 34.03 =========== =========== ============ =========== *Total Cost of Investments............... $ 8,038,575 $11,952,110 $ 48,925,346 $12,877,108 =========== =========== ============ ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 49 STATEMENTS OF ASSETS AND LIABILITIES (concluded) April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT MATERIALS ETF TECHNOLOGY ETF UTILITIES ETF ------------- -------------- ------------- ASSETS Investments at Market Value*..................... $ 5,603,621 $ 8,247,957 $ 5,686,426 Receivables: Dividends...................................... 3,895 3,634 15,132 ----------- ----------- ----------- TOTAL ASSETS................................ 5,607,516 8,251,591 5,701,558 ----------- ----------- ----------- LIABILITIES Payables: Accrued Management Fees........................ 3,757 6,003 4,579 ----------- ----------- ----------- TOTAL LIABILITIES........................... 3,757 6,003 4,579 ----------- ----------- ----------- NET ASSETS....................................... $ 5,603,759 $ 8,245,588 $ 5,696,979 =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.................................. $ 7,573,651 $14,742,169 $ 7,886,106 Undistributed Net Investment Income.............. 4,301 1,105 20,166 Accumulated Net Realized Loss on Investment Securities..................................... (1,254,764) (2,284,820) (656,135) Net Unrealized Depreciation on Investment Securities..................................... (719,429) (4,212,866) (1,553,158) ----------- ----------- ----------- NET ASSETS....................................... $ 5,603,759 $ 8,245,588 $ 5,696,979 =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value................................... 150,000 250,000 150,000 =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................................ $ 37.36 $ 32.98 $ 37.98 =========== =========== =========== *Total Cost of Investments....................... $ 6,323,050 $12,460,823 $ 7,239,584 =========== =========== ===========
See Notes to Financial Statements. 50 STATEMENTS OF OPERATIONS For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX S&P RYDEX S&P S&P MIDCAP S&P MIDCAP 500 PURE 500 PURE 400 PURE 400 PURE VALUE ETF GROWTH ETF VALUE ETF GROWTH ETF ----------- ----------- ----------- ----------- INVESTMENT INCOME Dividends................................. $ 308,869 $ 140,747 $ 203,115 $ 46,005 ----------- ----------- ----------- ----------- EXPENSES Management Fee............................ 21,020 40,007 13,457 22,305 ----------- ----------- ----------- ----------- Net Investment Income....................... 287,849 100,740 189,658 23,700 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Loss From: Investments............................... (9,334,141) (6,898,889) (6,234,150) (4,702,282) In-kind Redemptions....................... (343,394) -- (250,630) (1,595,495) ----------- ----------- ----------- ----------- Net Realized Loss...................... (9,677,535) (6,898,889) (6,484,780) (6,297,777) Net Change in Unrealized Appreciation on: Investment Securities..................... 7,602,694 8,249,473 5,386,558 6,879,353 ----------- ----------- ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments............................... (2,074,841) 1,350,584 (1,098,222) 581,576 ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............ $(1,786,992) $ 1,451,324 $ (908,564) $ 605,276 =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 51 STATEMENTS OF OPERATIONS (continued) For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX S&P RYDEX S&P S&P SMALLCAP S&P SMALLCAP EQUAL WEIGHT EQUAL WEIGHT 600 PURE 600 PURE CONSUMER CONSUMER VALUE ETF GROWTH ETF DISCRETIONARY ETF STAPLES ETF ------------ ------------ ----------------- ------------ INVESTMENT INCOME Dividends, Net of Foreign Tax Withheld.......................... $ 319,005 $ 28,966 $ 117,269 $ 151,861 ------------ ----------- ----------- --------- EXPENSES Management Fee....................... 29,240 10,011 20,516 23,282 Other Fees........................... 247 -- -- -- ------------ ----------- ----------- --------- Total Expenses.................... 29,487 10,011 20,516 23,282 ------------ ----------- ----------- --------- Net Investment Income.................. 289,518 18,955 96,753 128,579 ------------ ----------- ----------- --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.......................... (13,000,373) (1,941,703) (1,395,378) (219,248) In-kind Redemptions.................. (13,212) (393,352) 224,856 26,986 ------------ ----------- ----------- --------- Net Realized Loss................. (13,013,585) (2,335,055) (1,170,522) (192,262) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities................ 11,519,452 1,796,176 2,208,243 (174,891) ------------ ----------- ----------- --------- Net Realized and Unrealized Gain (Loss) on Investments....................... (1,494,133) (538,879) 1,037,721 (367,153) ------------ ----------- ----------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (1,204,615) $ (519,924) $ 1,134,474 $(238,574) ============ =========== =========== ========= Foreign Taxes Withheld............... 276 -- -- --
See Notes to Financial Statements. 52 STATEMENTS OF OPERATIONS (continued) For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT ENERGY ETF FINANCIALS ETF HEALTH CARE ETF INDUSTRIALS ETF ------------ -------------- --------------- --------------- INVESTMENT INCOME Dividends............................ $ 50,138 $ 164,845 $ 222,166 $ 106,713 ----------- ----------- ----------- ----------- EXPENSES Management Fee....................... 13,957 18,668 100,332 17,145 Other Fees........................... -- -- 461 -- ----------- ----------- ----------- ----------- Total Expenses.................... 13,957 18,668 100,793 17,145 ----------- ----------- ----------- ----------- Net Investment Income.................. 36,181 146,177 121,373 89,568 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.......................... (1,451,545) (2,659,521) (2,956,673) (871,194) In-kind Redemptions.................. 456,287 -- (214,318) (320,638) ----------- ----------- ----------- ----------- Net Realized Loss................. (995,258) (2,659,521) (3,170,991) (1,191,832) Net Change in Unrealized Appreciation on: Investment Securities................ 1,040,907 18,898 2,618,901 1,767,757 ----------- ----------- ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments....................... 45,649 (2,640,623) (552,090) 575,925 ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ 81,830 $(2,494,446) $ (430,717) $ 665,493 =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 STATEMENTS OF OPERATIONS (concluded) For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT MATERIALS ETF TECHNOLOGY ETF UTILITIES ETF ------------- -------------- ------------- INVESTMENT INCOME Dividends...................................... $ 74,628 $ 36,888 $ 128,028 ---------- ----------- --------- EXPENSES Management Fee................................. 11,108 16,781 11,803 ---------- ----------- --------- Net Investment Income............................ 63,520 20,107 116,225 ---------- ----------- --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Loss From: Investments.................................... (994,176) (1,573,684) (580,731) ---------- ----------- --------- Net Realized Loss........................... (994,176) (1,573,684) (580,731) Net Change in Unrealized Appreciation on: Investment Securities.......................... 1,443,959 2,323,054 75,768 ---------- ----------- --------- Net Realized and Unrealized Gain (Loss) on Investments.................................... 449,783 749,370 (504,963) ---------- ----------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................. $ 513,303 $ 769,477 $(388,738) ========== =========== =========
See Notes to Financial Statements. 54 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 287,849 $ 979,921 $ 100,740 $ 263,229 Net Realized Gain (Loss)......... (9,677,535) (3,999,686) (6,898,889) 105,919 Net Change in Unrealized Appreciation (Depreciation) on Investments................... 7,602,694 (12,417,041) 8,249,473 (19,825,715) ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations.................... (1,786,992) (15,436,806) 1,451,324 (19,456,567) ----------- ------------ ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (297,917) (996,902) (108,170) (259,562) ----------- ------------ ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 446,539 9,326,454 5,479,789 15,193,116 Value of Shares Purchased through Dividend Reinvestments........ 14,147 21,040 2,114 1,902 Value of Shares Redeemed......... (2,522,624) (14,555,071) -- (34,421,140) ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (2,061,938) (5,207,577) 5,481,903 (19,226,122) ----------- ------------ ----------- ------------ Increase (Decrease) in Net Assets...................... (4,146,847) (21,641,285) 6,825,057 (38,942,251) NET ASSETS--BEGINNING OF PERIOD.... 17,993,580 39,634,865 24,397,786 63,340,037 ----------- ------------ ----------- ------------ NET ASSETS--END OF PERIOD(1)....... $13,846,733 $ 17,993,580 $31,222,843 $ 24,397,786 =========== ============ =========== ============ (1) Including Undistributed Net Investment Income................ $ 3,654 $ 13,722 $ 11,451 $ 18,881 =========== ============ =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 50,000 350,000 250,000 400,000 Shares Purchased through Dividend Reinvestments................. 1,060 797 94 56 Shares Redeemed.................. (150,000) (500,000) -- (1,000,000) Shares Outstanding, Beginning of Period........................ 1,000,989 1,150,192 1,000,097 1,600,041 ----------- ------------ ----------- ------------ Shares Outstanding, End of Period........................ 902,049 1,000,989 1,250,191 1,000,097 =========== ============ =========== ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 55 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P MIDCAP RYDEX S&P MIDCAP 400 PURE VALUE ETF 400 PURE GROWTH ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 189,658 $ 394,995 $ 23,700 $ 8,569 Net Realized Loss................ (6,484,780) (1,434,610) (6,297,777) (58,952) Net Change in Unrealized Appreciation (Depreciation) on Investments................... 5,386,558 (6,410,678) 6,879,353 (10,136,135) ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations.................... (908,564) (7,450,293) 605,276 (10,186,518) ----------- ------------ ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (169,889) (365,468) (20,565) (14,295) Capital.......................... -- (3,840) -- -- ----------- ------------ ----------- ------------ Decrease in Net Assets From Distributions to Shareholders.................. (169,889) (369,308) (20,565) (14,295) ----------- ------------ ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 701,057 2,929,138 5,878,310 31,994,754 Value of Shares Purchased through Dividend Reinvestments........ 2,334 2,678 214 170 Value of Shares Redeemed......... (1,386,311) (6,444,307) (5,010,579) (25,112,473) ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (682,920) (3,512,491) 867,945 6,882,451 ----------- ------------ ----------- ------------ Increase (Decrease) in Net Assets...................... (1,761,373) (11,332,092) 1,452,656 (3,318,362) NET ASSETS--BEGINNING OF PERIOD.... 10,125,536 21,457,628 17,595,844 20,914,206 ----------- ------------ ----------- ------------ NET ASSETS--END OF PERIOD(1)....... $ 8,364,163 $ 10,125,536 $19,048,500 $ 17,595,844 =========== ============ =========== ============ (1) Including Undistributed Net Investment Income................ $ 19,769 $ -- $ 3,228 $ 93 =========== ============ =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 50,000 100,000 150,000 600,000 Shares Purchased through Dividend Reinvestments................. 152 90 6 3 Shares Redeemed.................. (100,000) (200,000) (150,000) (500,000) Shares Outstanding, Beginning of Period........................ 500,168 600,078 450,011 350,008 ----------- ------------ ----------- ------------ Shares Outstanding, End of Period........................ 450,320 500,168 450,017 450,011 =========== ============ =========== ============
See Notes to Financial Statements. 56 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP RYDEX S&P SMALLCAP 600 PURE VALUE ETF 600 PURE GROWTH ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 289,518 $ 639,744 $ 18,955 $ 27,966 Net Realized Gain (Loss)......... (13,013,585) (3,823,543) (2,335,055) 299,165 Net Change in Unrealized Appreciation (Depreciation) on Investments................... 11,519,452 (7,000,618) 1,796,176 (3,549,666) ------------ ------------ ----------- ----------- Net Decrease in Net Assets Resulting From Operations..... (1,204,615) (10,184,417) (519,924) (3,222,535) ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (246,992) (581,573) (18,040) (27,774) ------------ ------------ ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 5,539,948 18,998,419 -- 3,530,251 Value of Shares Purchased through Dividend Reinvestments........ 14 577 -- 111 Value of Shares Redeemed......... (5,909,084) (5,132,560) (948,265) (4,251,773) ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (369,122) 13,866,436 (948,265) (721,411) ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets...................... (1,820,729) 3,100,446 (1,486,229) (3,971,720) NET ASSETS--BEGINNING OF PERIOD.... 25,526,790 22,426,344 7,257,386 11,229,106 ------------ ------------ ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $ 23,706,061 $ 25,526,790 $ 5,771,157 $ 7,257,386 ============ ============ =========== =========== (1) Including Undistributed Net Investment Income................ $ 54,707 $ 12,181 $ 1,107 $ 192 ============ ============ =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 300,000 650,000 -- 100,000 Shares Purchased through Dividend Reinvestments................. 1 18 -- 3 Shares Redeemed.................. (300,000) (150,000) (50,000) (100,000) Shares Outstanding, Beginning of Period........................ 1,100,039 600,021 250,004 250,001 ------------ ------------ ----------- ----------- Shares Outstanding, End of Period........................ 1,100,040 1,100,039 200,004 250,004 ============ ============ =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 57 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF CONSUMER STAPLES ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 96,753 $ 183,955 $ 128,579 $ 174,606 Net Realized Gain (Loss)......... (1,170,522) (3,645,142) (192,262) 41,473 Net Change in Unrealized Appreciation (Depreciation) on Investments................... 2,208,243 (2,318,744) (174,891) (2,115,793) ----------- ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... 1,134,474 (5,779,931) (238,574) (1,899,714) ----------- ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (98,060) (191,461) (118,666) (170,546) ----------- ------------ ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 7,915,932 77,181,099 -- 6,977,860 Value of Shares Redeemed......... (7,314,430) (96,415,372) (1,954,772) (2,441,867) ----------- ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. 601,502 (19,234,273) (1,954,772) 4,535,993 ----------- ------------ ----------- ----------- Increase (Decrease) in Net Assets...................... 1,637,916 (25,205,665) (2,312,012) 2,465,733 NET ASSETS--BEGINNING OF PERIOD.... 3,722,266 28,927,931 10,367,839 7,902,106 ----------- ------------ ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $ 5,360,182 $ 3,722,266 $ 8,055,827 $10,367,839 =========== ============ =========== =========== (1) Including Undistributed Net Investment Income................ $ 1,158 $ 2,465 $ 21,594 $ 11,681 =========== ============ =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 450,000 2,050,000 -- 150,000 Shares Redeemed.................. (400,000) (2,550,000) (50,000) (50,000) Shares Outstanding, Beginning of Period........................ 150,000 650,000 250,000 150,000 ----------- ------------ ----------- ----------- Shares Outstanding, End of Period........................ 200,000 150,000 200,000 250,000 =========== ============ =========== ===========
See Notes to Financial Statements. 58 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT FINANCIALS ENERGY ETF ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 36,181 $ 64,476 $ 146,177 $ 188,717 Net Realized Gain (Loss)......... (995,258) 1,935,459 (2,659,521) (2,058,581) Net Change in Unrealized Appreciation (Depreciation) on Investments................... 1,040,907 (6,142,032) 18,898 (2,732,751) ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... 81,830 (4,142,097) (2,494,446) (4,602,615) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (32,396) (63,539) (142,048) (161,215) Net Realized Gains............... -- (269,337) -- -- ----------- ----------- ----------- ----------- Decrease in Net Assets From Distributions to Shareholders.................. (32,396) (332,876) (142,048) (161,215) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 1,426,851 6,873,049 840,925 8,469,375 Value of Shares Purchased through Dividend Reinvestments........ -- 343 -- -- Value of Shares Redeemed......... (1,884,823) (6,562,435) -- -- ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (457,972) 310,957 840,925 8,469,375 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets...................... (408,538) (4,164,016) (1,795,569) 3,705,545 NET ASSETS--BEGINNING OF PERIOD.... 5,957,551 10,121,567 10,705,365 6,999,820 ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $ 5,549,013 $ 5,957,551 $ 8,909,796 $10,705,365 =========== =========== =========== =========== (1) Including Undistributed Net Investment Income................ $ 4,722 $ 937 $ 4,129 $ -- =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 50,000 100,000 50,000 350,000 Shares Purchased through Dividend Reinvestments................. -- 5 -- -- Shares Redeemed.................. (50,000) (100,000) -- -- Shares Outstanding, Beginning of Period........................ 150,005 150,000 500,000 150,000 ----------- ----------- ----------- ----------- Shares Outstanding, End of Period........................ 150,005 150,005 550,000 500,000 =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 59 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF INDUSTRIALS ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 121,373 $ 103,107 $ 89,568 $ 108,811 Net Realized Gain (Loss)......... (3,170,991) 264,131 (1,191,832) 1,041,342 Net Change in Unrealized Appreciation (Depreciation) on Investments................... 2,618,901 (13,885,432) 1,767,757 (4,023,914) ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... (430,717) (13,518,194) 665,493 (2,873,761) ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (117,466) (94,309) (73,628) (106,813) Net Realized Gains............... -- -- -- (266,443) ------------ ------------ ----------- ----------- Decrease in Net Assets From Distributions to Shareholders.................. (117,466) (94,309) (73,628) (373,256) ------------ ------------ ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 6,134,208 61,205,232 6,985,719 7,034,803 Value of Shares Redeemed......... (16,613,738) (16,438,715) (2,811,423) (5,547,224) ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (10,479,530) 44,766,517 4,174,296 1,487,579 ------------ ------------ ----------- ----------- Increase (Decrease) in Net Assets...................... (11,027,713) 31,154,014 4,766,161 (1,759,438) NET ASSETS--BEGINNING OF PERIOD.... 48,536,602 17,382,588 7,145,809 8,905,247 ------------ ------------ ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $ 37,508,889 $ 48,536,602 $11,911,970 $ 7,145,809 ============ ============ =========== =========== (1) Including Undistributed Net Investment Income................ $ 14,870 $ 10,963 $ 17,445 $ 1,505 ============ ============ =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 150,000 1,150,000 250,000 150,000 Shares Redeemed.................. (400,000) (300,000) (100,000) (100,000) Shares Outstanding, Beginning of Period........................ 1,150,000 300,000 200,000 150,000 ------------ ------------ ----------- ----------- Shares Outstanding, End of Period........................ 900,000 1,150,000 350,000 200,000 ============ ============ =========== ===========
See Notes to Financial Statements. 60 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT MATERIALS ETF TECHNOLOGY ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 63,520 $ 156,833 $ 20,107 $ 26,296 Net Realized Gain (Loss)......... (994,176) 60,553 (1,573,684) (1,334,303) Net Change in Unrealized Appreciation (Depreciation) on Investments................... 1,443,959 (2,701,829) 2,323,054 (7,030,476) ---------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations.................... 513,303 (2,484,443) 769,477 (8,338,483) ---------- ----------- ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (64,551) (159,896) (19,002) (27,611) ---------- ----------- ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... -- 4,429,500 -- 15,426,927 Value of Shares Redeemed......... -- (5,543,627) -- (18,877,730) ---------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. -- (1,114,127) -- (3,450,803) ---------- ----------- ----------- ------------ Increase (Decrease) in Net Assets...................... 448,752 (3,758,466) 750,475 (11,816,897) NET ASSETS--BEGINNING OF PERIOD.... 5,155,007 8,913,473 7,495,113 19,312,010 ---------- ----------- ----------- ------------ NET ASSETS--END OF PERIOD(1)....... $5,603,759 $ 5,155,007 $ 8,245,588 $ 7,495,113 ========== =========== =========== ============ (1) Including Undistributed Net Investment Income................ $ 4,301 $ 5,332 $ 1,105 $ -- ========== =========== =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. -- 100,000 -- 350,000 Shares Redeemed.................. -- (100,000) -- (450,000) Shares Outstanding, Beginning of Period........................ 150,000 150,000 250,000 350,000 ---------- ----------- ----------- ------------ Shares Outstanding, End of Period........................ 150,000 150,000 250,000 250,000 ========== =========== =========== ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 61 STATEMENTS OF CHANGES IN NET ASSETS (concluded) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF ------------------------------------ SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008 ------------------ ---------------- OPERATIONS Net Investment Income................................. $ 116,225 $ 186,347 Net Realized Loss..................................... (580,731) (426,683) Net Change in Unrealized Appreciation (Depreciation) on Investments..................................... 75,768 (2,110,863) ---------- ----------- Net Decrease in Net Assets Resulting From Operations.. (388,738) (2,351,199) ---------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................. (113,580) (182,405) ---------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased........................ 2,081,546 2,499,606 Value of Shares Redeemed.............................. -- (2,076,737) ---------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions................................. 2,081,546 422,869 ---------- ----------- Increase (Decrease) in Net Assets.................. 1,579,228 (2,110,735) NET ASSETS--BEGINNING OF PERIOD......................... 4,117,751 6,228,486 ---------- ----------- NET ASSETS--END OF PERIOD(1)............................ $5,696,979 $ 4,117,751 ========== =========== (1) Including Undistributed Net Investment Income....... $ 20,166 $ 17,521 ========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased...................................... 50,000 50,000 Shares Redeemed....................................... -- (50,000) Shares Outstanding, Beginning of Period............... 100,000 100,000 ---------- ----------- Shares Outstanding, End of Period..................... 150,000 100,000 ========== ===========
See Notes to Financial Statements. 62 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF ---------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006 ---------------- ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 17.98 $ 34.46 $ 32.66 $ 29.87 ------- ------- ------- ------- Net Investment Income**............. 0.32 1.00 0.75 0.49 Net Realized and Unrealized Gain (Loss) on Investments............. (2.61) (16.44) 1.80 2.58 ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... (2.29) (15.44) 2.55 3.07 ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.34) (1.04) (0.75) (0.28) ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 15.35 $ 17.98 $ 34.46 $ 32.66 ======= ======= ======= ======= TOTAL RETURN***..................... (25.08)% (45.76)% 7.79% 10.27% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $13,847 $17,994 $39,635 $21,232 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.34%**** 0.35% 0.35% 0.35%**** Net Investment Income............... 4.72%**** 3.63% 2.15% 2.37%**** Portfolio Turnover Rate+............ 56% 53% 26% 4%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 63 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P 500 PURE GROWTH ETF ---------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006 ---------------- ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 24.40 $ 39.59 $ 35.30 $ 34.42 ------- ------- ------- ------- Net Investment Income**............. 0.10 0.20 0.25 0.11 Net Realized and Unrealized Gain (Loss) on Investments............. 0.57 (15.19) 4.26 0.84 ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... 0.67 (14.99) 4.51 0.95 ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.10) (0.20) (0.22) (0.07) ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 24.97 $ 24.40 $ 39.59 $ 35.30 ======= ======= ======= ======= TOTAL RETURN***..................... 5.73% (38.00)% 12.79% 2.77% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $31,223 $24,398 $63,340 $17,649 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.35%**** 0.35% 0.35% 0.35%**** Net Investment Income............... 0.87%**** 0.57% 0.66% 0.48%**** Portfolio Turnover Rate+............ 28% 30% 24% 7%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 64 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 PURE VALUE ETF ---------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006 ---------------- ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 20.24 $ 35.76 $ 33.27 $ 31.53 ------- ------- ------- ------- Net Investment Income**............. 0.39 0.87 0.82 0.44 Net Realized and Unrealized Gain (Loss) on Investments............. (1.72) (15.54) 2.48 1.60 ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... (1.33) (14.67) 3.30 2.04 ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.34) (0.84) (0.81) (0.30) Capital............................. -- (0.01) -- -- ------- ------- ------- ------- Total Distributions................. (0.34) (0.85) (0.81) (0.30) ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 18.57 $ 20.24 $ 35.76 $ 33.27 ======= ======= ======= ======= TOTAL RETURN***..................... (12.58)% (41.75)% 9.94% 6.48% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $ 8,364 $10,126 $21,458 $14,973 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.35%**** 0.35% 0.35% 0.35%**** Net Investment Income............... 4.86%**** 2.87% 2.28% 2.07%**** Portfolio Turnover Rate+............ 77% 64% 46% 4%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 65 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 PURE GROWTH ETF ---------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006 ---------------- ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 39.10 $ 59.75 $ 50.10 $ 52.62 ------- ------- ------- ------- Net Investment Income**............. 0.06 0.02 0.33 0.02 Net Realized and Unrealized Gain (Loss) on Investments............. 3.23 (20.63) 9.73 (2.53) ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... 3.29 (20.61) 10.06 (2.51) ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.06) (0.04) (0.27) (0.01) Net Realized Gains.................. -- -- (0.14) -- ------- ------- ------- ------- Total Distributions................. (0.06) (0.04) (0.41) (0.01) ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 42.33 $ 39.10 $ 59.75 $ 50.10 ======= ======= ======= ======= TOTAL RETURN***..................... 17.04% (34.52)% 20.17% (4.76)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $19,049 $17,596 $20,914 $22,547 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.34%**** 0.35% 0.35% 0.35%**** Net Investment Income............... 0.37%**** 0.04% 0.60% 0.07%**** Portfolio Turnover Rate+............ 44% 52% 53% 14%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 66 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 PURE VALUE ETF ---------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006 ---------------- ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 23.21 $ 37.38 $ 40.13 $38.45 ------- ------- ------- ------ Net Investment Income**............. 0.28 0.79 0.74 0.37 Net Realized and Unrealized Gain (Loss) on Investments............. (1.71) (14.26) (2.85) 1.62 ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... (1.43) (13.47) (2.11) 1.99 ------- ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.23) (0.70) (0.62) (0.31) Capital............................. -- -- (0.02) -- ------- ------- ------- ------ Total Distributions................. (0.23) (0.70) (0.64) (0.31) ------- ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.... $ 21.55 $ 23.21 $ 37.38 $40.13 ======= ======= ======= ====== TOTAL RETURN***..................... (11.67)% (36.48)% (5.38)% 5.19% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $23,706 $25,527 $22,426 $6,019 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.35%**** 0.35% 0.35% 0.35%**** Net Investment Income............... 3.41%**** 2.57% 1.78% 1.46%**** Portfolio Turnover Rate+............ 105% 50% 37% 7%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 67 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF ---------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006 ---------------- ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $29.03 $ 44.92 $ 39.10 $39.31 ------ ------- ------- ------ Net Investment Income (Loss)**...... 0.08 0.17 -- (0.01) Net Realized and Unrealized Gain (Loss) on Investments............. (0.18) (15.87) 5.84 (0.20) ------ ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... (0.10) (15.70) 5.84 (0.21) ------ ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.07) (0.19) (0.02) -- ------ ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.... $28.86 $ 29.03 $ 44.92 $39.10 ====== ======= ======= ====== TOTAL RETURN***..................... (0.68)% (35.05)% 14.93% (0.55)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $5,771 $ 7,257 $11,229 $7,820 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.35%**** 0.35% 0.35% 0.35%**** Net Investment Income............... 0.65%**** 0.44% 0.00% (0.04)%**** Portfolio Turnover Rate+............ 58% 63% 51% 14%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 68 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $24.82 $ 44.50 $ 44.98 ------ ------- ------- Net Investment Income**....................... 0.25 0.53 0.32 Net Realized and Unrealized Gain (Loss) on Investments................................. 1.97 (19.59) (0.49) ------ ------- ------- TOTAL FROM INVESTMENT OPERATIONS.............. 2.22 (19.06) (0.17) ------ ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.24) (0.62) (0.31) ------ ------- ------- NET ASSET VALUE AT END OF PERIOD.............. $26.80 $ 24.82 $ 44.50 ====== ======= ======= TOTAL RETURN***............................... 18.56% (43.27)% (0.40)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $5,360 $ 3,722 $28,928 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.50%**** 0.50% 0.50%**** Net Investment Income......................... 2.35%**** 1.44% 0.67%**** Portfolio Turnover Rate+...................... 25% 29% 28%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 69 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $41.47 $ 52.68 $48.16 ------ ------- ------ Net Investment Income**....................... 0.52 0.88 1.16 Net Realized and Unrealized Gain (Loss) on Investments................................. (1.24) (11.22) 4.32 ------ ------- ------ TOTAL FROM INVESTMENT OPERATIONS.............. (0.72) (10.34) 5.48 ------ ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.47) (0.87) (0.96) ------ ------- ------ NET ASSET VALUE AT END OF PERIOD.............. $40.28 $ 41.47 $52.68 ====== ======= ====== TOTAL RETURN***............................... (3.40)% (19.87)% 11.45% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $8,056 $10,368 $7,902 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.49%**** 0.50% 0.50%**** Net Investment Income......................... 2.73%**** 1.78% 2.29%**** Portfolio Turnover Rate+...................... 17% 25% 19%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 70 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ENERGY ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $ 39.72 $ 67.48 $ 48.35 ------- ------- ------- Net Investment Income**....................... 0.22 0.33 0.27 Net Realized and Unrealized Gain (Loss) on Investments................................. (2.76) (25.94) 19.14 ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.............. (2.54) (25.61) 19.41 ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.19) (0.35) (0.28) Net Realized Gains............................ -- (1.80) -- ------- ------- ------- Total Distributions........................... (0.19) (2.15) (0.28) ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.............. $ 36.99 $ 39.72 $ 67.48 ======= ======= ======= TOTAL RETURN***............................... (12.77)% (39.28)% 40.28% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $ 5,549 $ 5,958 $10,122 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.49%**** 0.50% 0.50%**** Net Investment Income......................... 1.28%**** 0.50% 0.47%**** Portfolio Turnover Rate+...................... 26% 38% 34%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 71 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT FINANCIAL ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $ 21.41 $ 46.67 $48.57 ------- ------- ------ Net Investment Income**....................... 0.29 1.02 0.92 Net Realized and Unrealized Gain (Loss) on Investments................................. (5.22) (25.40) (1.95) ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.............. (4.93) (24.38) (1.03) ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.28) (0.88) (0.87) ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.............. $ 16.20 $ 21.41 $46.67 ======= ======= ====== TOTAL RETURN***............................... (46.14)% (52.88)% (2.23)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $ 8,910 $10,705 $7,000 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.49%**** 0.50% 0.50%**** Net Investment Income......................... 3.86%**** 3.09% 1.84%**** Portfolio Turnover Rate+...................... 27% 51% 31%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 72 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $ 42.21 $ 57.94 $ 49.46 ------- ------- ------- Net Investment Income**....................... 0.12 0.14 0.11 Net Realized and Unrealized Gain (Loss) on Investments................................. (0.54) (15.74) 8.48 ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.............. (0.42) (15.60) 8.59 ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.11) (0.13) (0.11) ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.............. $ 41.68 $ 42.21 $ 57.94 ======= ======= ======= TOTAL RETURN***............................... (1.97)% (26.98)% 17.37% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $37,509 $48,537 $17,383 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.50%**** 0.50% 0.50%**** Net Investment Income......................... 0.60%**** 0.26% 0.20%**** Portfolio Turnover Rate+...................... 24% 26% 55%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 73 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT INDUSTRIAL ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $ 35.73 $ 59.37 $49.15 ------- ------- ------ Net Investment Income**....................... 0.40 0.61 0.56 Net Realized and Unrealized Gain (Loss) on Investments................................. (1.67) (21.82) 10.21 ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.............. (1.27) (21.21) 10.77 ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.43) (0.65) (0.55) Net Realized Gains............................ -- (1.78) -- ------- ------- ------ Total Distributions........................... (0.43) (2.43) (0.55) ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.............. $ 34.03 $ 35.73 $59.37 ======= ======= ====== TOTAL RETURN***............................... (6.86)% (37.12)% 22.00% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $11,912 $ 7,146 $8,905 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.49%**** 0.50% 0.50%**** Net Investment Income......................... 2.58%**** 1.17% 1.02%**** Portfolio Turnover Rate+...................... 16% 30% 36%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 74 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT MATERIALS ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $34.37 $ 59.42 $48.43 ------ ------- ------ Net Investment Income**....................... 0.42 1.40 0.85 Net Realized and Unrealized Gain (Loss) on Investments................................. 3.00 (25.11) 10.74 ------ ------- ------ TOTAL FROM INVESTMENT OPERATIONS.............. 3.42 (23.71) 11.59 ------ ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.43) (1.34) (0.60) ------ ------- ------ NET ASSET VALUE AT END OF PERIOD.............. $37.36 $ 34.37 $59.42 ====== ======= ====== TOTAL RETURN***............................... 20.63% (40.67)% 24.02% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $5,604 $ 5,155 $8,913 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.49%**** 0.50% 0.50%**** Net Investment Income......................... 2.82%**** 2.69% 1.53%**** Portfolio Turnover Rate+...................... 37% 34% 31%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 75 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $29.98 $ 55.18 $ 47.80 ------ ------- ------- Net Investment Income (Loss)**................ 0.08 0.06 (0.05) Net Realized and Unrealized Gain (Loss) on Investments................................. 3.00 (25.19) 7.43 ------ ------- ------- TOTAL FROM INVESTMENT OPERATIONS.............. 3.08 (25.13) 7.38 ------ ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.08) (0.07) -- ------ ------- ------- NET ASSET VALUE AT END OF PERIOD.............. $32.98 $ 29.98 $ 55.18 ====== ======= ======= TOTAL RETURN***............................... 20.80% (45.58)% 15.44% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $8,246 $ 7,495 $19,312 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.49%**** 0.50% 0.50%**** Net Investment Income......................... 0.59%**** 0.14% (0.10)%**** Portfolio Turnover Rate+...................... 16% 36% 60%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 76 FINANCIAL HIGHLIGHTS (concluded) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF ---------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........ $ 41.18 $ 62.28 $54.91 ------- ------- ------ Net Investment Income**....................... 0.93 1.81 1.55 Net Realized and Unrealized Gain (Loss) on Investments................................. (3.18) (21.09) 7.38 ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.............. (2.25) (19.28) 8.93 ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income......................... (0.95) (1.82) (1.56) ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.............. $ 37.98 $ 41.18 $62.28 ======= ======= ====== TOTAL RETURN***............................... (11.12)% (31.63)% 16.41% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)... $ 5,697 $ 4,118 $6,228 RATIO TO AVERAGE NET ASSETS OF: Expenses...................................... 0.50%**** 0.50% 0.50%**** Net Investment Income......................... 4.88%**** 3.30% 2.59%**** Portfolio Turnover Rate+...................... 16% 25% 20%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 77 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2009 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2009, the Trust offers thirty one portfolios, each of which represents a separate series of beneficial interest in the Trust, (each a "Fund" and collectively, the "Funds"). The financial statements herein relate to the following Funds: Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure Growth ETF, Rydex S&P MidCap 400 Pure Value ETF, Rydex S&P MidCap 400 Pure Growth ETF, Rydex S&P SmallCap 600 Pure Value ETF, Rydex S&P SmallCap 600 Pure Growth ETF, Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal Weight Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal Weight Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal Weight Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal Weight Technology ETF and Rydex S&P Equal Weight Utilities ETF. Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure Growth ETF, Rydex S&P MidCap 400 Pure Value ETF, Rydex S&P MidCap 400 Pure Growth ETF, Rydex S&P SmallCap 600 Pure Value ETF and Rydex S&P SmallCap 600 Pure Growth ETF commenced operations on March 1, 2006. Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal Weight Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal Weight Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal Weight Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal Weight Technology ETF and Rydex S&P Equal Weight Utilities ETF commenced operations on November 1, 2006. The Funds' investment objective is to provide investment results that correspond generally to the performance, before fees and expenses, of an index representing publicly traded equity securities (the "Underlying Index"). Rydex S&P 500 Pure Value ETF tracks the S&P 500/Citigroup Pure Value Index, the Rydex S&P 500 Pure Growth ETF tracks the S&P 500/Citigroup Pure Growth Index, the Rydex S&P MidCap 400 Pure Value ETF tracks the S&P MidCap 400/Citigroup Pure Value Index, the Rydex S&P MidCap 400 Pure Growth ETF tracks the S&P MidCap 400/Citigroup Pure Growth Index, the Rydex S&P SmallCap 600 Pure Value ETF tracks the S&P SmallCap 600/Citigroup Pure Value Index, the Rydex S&P SmallCap 600 Pure Growth ETF tracks the S&P SmallCap 600/Citigroup Pure Growth Index, Rydex S&P Equal Weight Consumer Discretionary ETF tracks the S&P Equal Weight Index Consumer Discretionary, the Rydex S&P Equal Weight Consumer Staples ETF tracks the S&P Equal Weight Index Consumer Staples, the Rydex S&P Equal Weight Energy ETF tracks the S&P Equal Weight Index Energy, the Rydex S&P Equal Weight Financials ETF tracks the S&P Equal Weight Index Financials, the Rydex S&P Equal Weight Health Care ETF tracks the S&P Equal Weight Index Health Care, the Rydex S&P Equal Weight Industrials ETF tracks the S&P Equal Weight Index Industrials, the Rydex S&P Equal Weight Materials ETF tracks the S&P Equal Weight Index Materials, the Rydex S&P Equal Weight Technology ETF tracks the S&P Equal Weight Index Information Technology and the Rydex S&P Equal Weight Utilities ETF tracks the S&P Equal Weight Index Telecommunication Services & Utilities. The Funds seek to achieve their objective by investing in common stocks that comprise the Underlying Index. The Funds use a "replication" strategy to track the Underlying Index. "Replication" refers to investing in substantially all of the securities in the Underlying Index in approximately the same proportions as in the Underlying Index. The Funds operate as index funds and are not actively managed. Adverse performance of a security in the Funds' portfolio will ordinarily not result in the elimination of the security from the Funds' portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures at the date of the financial statements and accompanying notes and the reported amounts of increases and decreases in net assets from operations during the reporting period. Management believes that the estimates utilized in preparing the Funds' financial statements are reasonable and prudent; however, actual results could differ from these estimates. A. SECURITY VALUATION Securities listed on a domestic securities exchange are valued based on the last sale price as of the close of regular trading hours on the New York Stock Exchange or, in the absence of recorded sales, are valued at the most recent bid price. Securities for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System ("NASDAQ") are valued at the NASDAQ Official Closing Price. The Funds invest in money market mutual funds, which are valued at their NAV. 78 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- Securities, for which market quotations are not readily available, including investments that are subject to limitations as to their sale, are valued at fair value as determined in good faith by Rydex Investments, which acts as the Funds' investment advisor, in accordance with procedures adopted by the Board of Trustees. In determining fair value, consideration is given to market conditions, relative benchmarks and other financial data. B. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from portfolio fund transactions are calculated on the identified cost basis. Dividend income is recorded on the ex- dividend date, net of foreign tax withholdings. Interest income is recorded on the accrual basis. C. REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements with financial institutions. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed-upon price. The repurchase price reflects an agreed-upon interest rate during the time the Fund's money is invested in the security. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. The Funds follow certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by Rydex Investments. In addition, the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, the Funds will seek to liquidate such collateral. However, the exercising of the Funds' right to liquidate such collateral could involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase price, the Funds could suffer a loss. It is the current policy of the Funds not to invest in repurchase agreements that do not mature within seven days if any such investment, together with any other illiquid assets held by the Funds, amounts to more than 15% of the Funds net assets. The investments of the Funds in repurchase agreements, at times, may be substantial when, in the view of Rydex Investments, liquidity or other considerations so warrant. For the six months ended April 30, 2009, the Funds had not engaged in repurchase agreement transactions. D. FEDERAL INCOME TAXES The Funds' policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of the taxable income and capital gains, if any, to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. 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 was 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 tax equalization, in-kind redemptions, income reclassifications from real estate investment trusts ("REITs") and losses deferred due to wash sales. For the six months ended April 30, 2009, the Funds realized net capital gains resulting from in-kind redemptions which, because they are non-taxable to the Funds, and therefore are not distributed to existing Fund shareholders, are reclassified to paid-in-capital. The in-kind net capital gains for the period ended April 30, 2009 are disclosed in the Fund's Statement of Operations. SEMI-ANNUAL REPORT 79 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- At April 30, 2009 the identified cost of investments in securities owned by each fund for federal income tax purposes and the gross unrealized appreciation and depreciation were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION COST APPRECIATION DEPRECIATION (DEPRECIATION) ----------- ------------ ------------ -------------- Rydex S&P 500 Pure Value ETF............. $18,883,480 $1,177,389 $ (6,224,217) $ (5,046,828) Rydex S&P 500 Pure Growth ETF............ 37,467,772 1,077,505 (7,323,738) (6,246,233) Rydex S&P MidCap 400 Pure Value ETF...... 9,842,611 1,239,031 (2,725,094) (1,486,063) Rydex S&P MidCap 400 Pure Growth ETF..... 21,261,724 1,050,767 (3,259,387) (2,208,620) Rydex S&P SmallCap 600 Pure Value ETF.... 21,895,762 5,556,091 (3,757,847) 1,798,244 Rydex S&P SmallCap 600 Pure Growth ETF... 6,617,232 618,998 (1,463,168) (844,170) Rydex S&P Equal Weight Consumer Discretionary ETF...................... 6,426,191 347,805 (1,412,598) (1,064,793) Rydex S&P Equal Weight Consumer Staples ETF.................................... 9,633,268 129,805 (1,712,803) (1,582,998) Rydex S&P Equal Weight Energy ETF........ 8,038,575 26,800 (2,516,374) (2,489,574) Rydex S&P Equal Weight Financials ETF.... 11,952,110 246,632 (3,290,590) (3,043,958) Rydex S&P Equal Weight Health Care ETF... 48,925,346 727,801 (12,141,669) (11,413,868) Rydex S&P Equal Weight Industrials ETF... 12,877,108 214,356 (1,194,102) (979,746) Rydex S&P Equal Weight Materials ETF..... 6,323,050 290,342 (1,009,771) (719,429) Rydex S&P Equal Weight Technology ETF.... 12,460,823 21,476 (4,234,342) (4,212,866) Rydex S&P Equal Weight Utilities ETF..... 7,239,584 85,503 (1,638,661) (1,553,158)
E. FAIR VALUE MEASUREMENT Effective November 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 an 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 Funds' 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. 80 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- The following table summarizes the inputs used to value the Funds' net assets as of April 30, 2009:
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 Rydex S&P 500 Pure Value ETF...... $13,836,652 $-- $-- $-- $-- $-- $13,836,652 Rydex S&P 500 Pure Growth ETF..... 31,221,539 -- -- -- -- -- 31,221,539 Rydex S&P MidCap 400 Pure Value ETF............................. 8,356,548 -- -- -- -- -- 8,356,548 Rydex S&P MidCap 400 Pure Growth ETF............................. 19,053,104 -- -- -- -- -- 19,053,104 Rydex S&P SmallCap 600 Pure Value ETF............................. 23,694,006 -- -- -- -- -- 23,694,006 Rydex S&P SmallCap 600 Pure Growth ETF............................. 5,773,062 -- -- -- -- -- 5,773,062 Rydex S&P Equal Weight Consumer Discretionary ETF............... 5,361,398 -- -- -- -- -- 5,361,398 Rydex S&P Equal Weight Consumer Staples ETF..................... 8,050,270 -- -- -- -- -- 8,050,270 Rydex S&P Equal Weight Energy ETF............................. 5,549,001 -- -- -- -- -- 5,549,001 Rydex S&P Equal Weight Financials ETF............................. 8,908,152 -- -- -- -- -- 8,908,152 Rydex S&P Equal Weight Health Care ETF............................. 37,511,478 -- -- -- -- -- 37,511,478 Rydex S&P Equal Weight Industrials ETF............................. 11,897,362 -- -- -- -- -- 11,897,362 Rydex S&P Equal Weight Materials ETF............................. 5,603,621 -- -- -- -- -- 5,603,621 Rydex S&P Equal Weight Technology ETF............................. 8,247,957 -- -- -- -- -- 8,247,957 Rydex S&P Equal Weight Utilities ETF............................. 5,686,426 -- -- -- -- -- 5,686,426
F. DIVIDENDS AND DISTRIBUTIONS Distributions of net investment income and net realized capital gains, if any, are declared at least annually and recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles. G. RISK AND UNCERTAINTIES The Trust invests in various investments which are exposed to risk, such as market risk. Due to the level of risk associated with certain investments it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect amounts reported in future financial statements. The Rydex S&P Equal Weight Sector ETFs are non-diversified funds, subjecting them to a greater risk than funds that are diversified. H. NEW ACCOUNTING PRONOUNCEMENTS In March 2008, the Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds' financial statement disclosures. In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly" ("FAS 157-4"), which provides additional guidance when the volume and level of activity for the asset or liability measured at fair value have significantly decreased. Additionally, FAS 157-4 amends FASB Statement No. 157, Fair Value Measurements, expanding disclosure requirements by reporting entities surrounding the major categories of assets and liabilities carried at fair value. FAS 157-4 is effective for interim and annual periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FAS 157- 4 will have on the Funds' financial statement disclosures. In May 2009, FASB issued FASB Staff Position FSP FAS 165, "Subsequent Events" ("FAS 165"), which provides additional guidance with respect to financial reporting of subsequent events, specifically; the period covered by subsequent events, the circumstance under which subsequent events will be recognized and the disclosure an entity will make about events or transactions that occur after balance sheet date. FAS 165 is effective for interim and annual periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FAS 165 will have on the Funds' financial statement disclosures. SEMI-ANNUAL REPORT 81 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- 3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES Rydex Investments determines the composition of the portfolio of securities that must be delivered in exchange for the issuance of Creation Units and periodically adjusts the composition of the portfolio of each Fund's to conform to changes in the composition of the relevant index. For these services, Rydex Investments receives an advisory fee at the annual rate shown below of the average daily net assets of the Funds.
ADVISORY FEE ------------ Rydex S&P 500 Pure Value ETF........................................ 0.35% Rydex S&P 500 Pure Growth ETF....................................... 0.35% Rydex S&P MidCap 400 Pure Value ETF................................. 0.35% Rydex S&P MidCap 400 Pure Growth ETF................................ 0.35% Rydex S&P SmallCap 600 Pure Value ETF............................... 0.35% Rydex S&P SmallCap 600 Pure Growth ETF.............................. 0.35% Rydex S&P Equal Weight Consumer Discretionary ETF................... 0.50% Rydex S&P Equal Weight Consumer Staples ETF......................... 0.50% Rydex S&P Equal Weight Energy ETF................................... 0.50% Rydex S&P Equal Weight Financials ETF............................... 0.50% Rydex S&P Equal Weight Health Care ETF.............................. 0.50% Rydex S&P Equal Weight Industrials ETF.............................. 0.50% Rydex S&P Equal Weight Materials ETF................................ 0.50% Rydex S&P Equal Weight Technology ETF............................... 0.50% Rydex S&P Equal Weight Utilities ETF................................ 0.50%
Rydex Investments pays all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except: interest, taxes, distribution fees or expenses and extraordinary expenses. Under an Administration Agreement, State Street Bank and Trust Company (the "Administrator") provides various administrative and accounting services for the maintenance and operations of the Funds. Under a Custodian Agreement with the Trust, the Administrator maintains cash, securities and other assets of the Trust and the Funds in separate accounts for each fund, keeps all necessary accounts and records, and provides other services. The Administrator is required, upon the order of the Trust, to deliver securities held by the Custodian and to make payments for securities purchased by the Trust for the Funds. Pursuant to a Transfer Agency and Service Agreement with the Trust, the Administrator acts as a transfer agent for the Trust's authorized and issued shares of beneficial interest, and as dividend disbursing agent of the Trust. Rydex Investments compensates the Administrator directly for the foregoing services. The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to pay distribution fees to Rydex Distributors, Inc. (the "Distributor") and other firms that provide distribution services ("Service Providers"). If a Service Provider provides distribution services, the Funds 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 will, in turn, pay the Service Provider out of its fees. No such fee is currently charged to the Funds. 4. CAPITAL At April 30, 2009, there were an unlimited number of no par value shares of beneficial interest authorized. There is a minimum transaction fee per transaction to those persons purchasing or redeeming Creation Units. An additional charge of up to three times the standard transaction fee may be imposed for purchases and redemptions effected outside the National Securities Clearing Corporation usual clearing process or for cash. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to 82 NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded) -------------------------------------------------------------------------------- equate the transaction to the net asset value per unit of the Fund on the transaction date. Transaction fees are not charged to or paid by the Fund. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex S&P 500 Pure Value ETF...................................... $1,000 Rydex S&P 500 Pure Growth ETF..................................... 1,000 Rydex S&P MidCap 400 Pure Value ETF............................... 750 Rydex S&P MidCap 400 Pure Growth ETF.............................. 750 Rydex S&P SmallCap 600 Pure Value ETF............................. 1,000 Rydex S&P SmallCap 600 Pure Growth ETF............................ 1,000 Rydex S&P Equal Weight Consumer Discretionary ETF................. 750 Rydex S&P Equal Weight Consumer Staples ETF....................... 500 Rydex S&P Equal Weight Energy ETF................................. 500 Rydex S&P Equal Weight Financials ETF............................. 750 Rydex S&P Equal Weight Health Care ETF............................ 500 Rydex S&P Equal Weight Industrials ETF............................ 500 Rydex S&P Equal Weight Materials ETF.............................. 500 Rydex S&P Equal Weight Technology ETF............................. 750 Rydex S&P Equal Weight Utilities ETF.............................. 500
5. INVESTMENT TRANSACTIONS For the six months ended April 30, 2009 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex S&P 500 Pure Value ETF............................... $ 439,311 $ 2,500,546 Rydex S&P 500 Pure Growth ETF.............................. 5,473,040 -- Rydex S&P MidCap 400 Pure Value ETF........................ 700,342 1,386,985 Rydex S&P MidCap 400 Pure Growth ETF....................... 5,877,442 5,008,472 Rydex S&P SmallCap 600 Pure Value ETF...................... 5,500,563 5,882,770 Rydex S&P SmallCap 600 Pure Growth ETF..................... -- 948,073 Rydex S&P Equal Weight Consumer Discretionary ETF.......... 7,901,353 7,306,941 Rydex S&P Equal Weight Consumer Staples ETF................ -- 1,951,665 Rydex S&P Equal Weight Energy ETF.......................... 1,423,441 1,883,847 Rydex S&P Equal Weight Financials ETF...................... 839,686 -- Rydex S&P Equal Weight Health Care ETF..................... 6,130,872 16,609,732 Rydex S&P Equal Weight Industrials ETF..................... 1,396,566 2,800,601 Rydex S&P Equal Weight Materials ETF....................... -- -- Rydex S&P Equal Weight Technology ETF...................... -- -- Rydex S&P Equal Weight Utilities ETF....................... 2,078,437 --
Purchases and sales of investment securities (excluding short-term investments, U.S. government and government agency obligations) for the Funds were as follows:
PURCHASES SALES ----------- ----------- Rydex S&P 500 Pure Value ETF................................ $ 8,514,130 $ 7,150,301 Rydex S&P 500 Pure Growth ETF............................... 6,848,163 8,108,933 Rydex S&P MidCap 400 Pure Value ETF......................... 6,421,030 6,192,115 Rydex S&P MidCap 400 Pure Growth ETF........................ 7,117,211 6,375,851 Rydex S&P SmallCap 600 Pure Value ETF....................... 19,397,330 19,268,872 Rydex S&P SmallCap 600 Pure Growth ETF...................... 3,657,817 3,490,670 Rydex S&P Equal Weight Consumer Discretionary ETF........... 1,926,806 1,916,850 Rydex S&P Equal Weight Consumer Staples ETF................. 1,561,402 1,887,381 Rydex S&P Equal Weight Energy ETF........................... 1,665,755 1,431,431 Rydex S&P Equal Weight Financials ETF....................... 2,463,780 2,160,440 Rydex S&P Equal Weight Health Care ETF...................... 9,538,536 10,184,105 Rydex S&P Equal Weight Industrials ETF...................... 6,811,692 1,221,400 Rydex S&P Equal Weight Materials ETF........................ 1,791,165 1,745,514 Rydex S&P Equal Weight Technology ETF....................... 1,163,897 1,115,652 Rydex S&P Equal Weight Utilities ETF........................ 792,884 916,351
There were no purchases or sales of U.S. government or government agency obligations for the six months ended April 30, 2009. SEMI-ANNUAL REPORT 83 SUPPLEMENTAL INFORMATION (Unaudited) -------------------------------------------------------------------------------- PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 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 for portfolio securities, if applicable, during the most recent 12-month period ended June 30, 2008 is also available, without charge and upon request, by (i) calling 1-800-820-0888; or accessing the Trust's Form N-PX 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 Trust's 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. 84 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 FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ---------------------- ---------------- CARL G. VERBONCOEUR* Rydex Series 152 Trustee, President Funds - 2004 (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 2009); Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2009). --------------------- MICHAEL P. BYRUM* Rydex Series 152 Trustee, Vice President Funds - 2005 and Rydex Variable Secretary (1970) Trust - 2005 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 FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ---------------------- ---------------- JOHN O. DEMARET Rydex Series 152 Trustee, Chairman of Funds - 1997 the Board (1940) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------------- COREY A. COLEHOUR Rydex Series 152 Trustee (1945) Funds - 1993 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, registered investment advisor (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment advisor (1985 to 2005) --------------------- J. KENNETH DALTON Rydex Series 152 Trustee (1941) Funds - 1995 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 152 Trustee (1940) Funds - 2005 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) ---------------------
SEMI-ANNUAL REPORT 85 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (concluded)
LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ---------------------- ---------------- THOMAS F. LYDON, JR. Rydex Series 152 Trustee (1960) Funds - 2005 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 152 Trustee (1942) Funds - 1997 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 152 Trustee (1944) Funds - 1993 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 DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) 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 Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Variable Trust, and Rydex (1966) 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 of Rydex Series Assistant Treasurer (1966) 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) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) 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 the Rydex Investments. (RYDEX | SGI(SM) LOGO) 9601 Blackwell Road - Suite 500 - Rockville, MD 20850 www.rydex-sgi.com - 800.820.0888 ETF2-SEMI-0409X1009 APRIL 30, 2009 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX 2x S&P 500 ETF RYDEX INVERSE 2x S&P 500 ETF RYDEX 2x S&P MIDCAP 400 ETF RYDEX INVERSE 2x S&P MIDCAP 400 ETF RYDEX 2x RUSSELL 2000(R) ETF RYDEX INVERSE 2x RUSSELL 2000(R) ETF RYDEX 2x S&P SELECT SECTOR ENERGY ETF RYDEX INVERSE 2x S&P SELECT SECTOR ENERGY ETF RYDEX 2x S&P SELECT SECTOR FINANCIAL ETF RYDEX INVERSE 2x S&P SELECT SECTOR FINANCIAL ETF RYDEX 2x S&P SELECT SECTOR HEALTH CARE ETF RYDEX INVERSE 2x S&P SELECT SECTOR HEALTH CARE ETF RYDEX 2x S&P SELECT SECTOR TECHNOLOGY ETF RYDEX INVERSE 2x S&P SELECT SECTOR TECHNOLOGY ETF [RYDEX SGI(SM) LOGO] SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS........................ 2 FEES & EXPENSES................................... 4 A BRIEF NOTE ON THE COMPOUNDING OF RETURNS........ 5 PREMIUM AND DISCOUNT INFORMATION.................. 6 PORTFOLIO SUMMARY................................. 9 SCHEDULES OF INVESTMENTS.......................... 16 STATEMENTS OF ASSETS AND LIABILITIES.............. 59 STATEMENTS OF OPERATIONS.......................... 63 STATEMENTS OF CHANGES IN NET ASSETS............... 67 FINANCIAL HIGHLIGHTS.............................. 74 NOTES TO FINANCIAL STATEMENTS..................... 88 SUPPLEMENTAL INFORMATION.......................... 96 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS..... 97
2 LETTER TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- DEAR SHAREHOLDER, Last year was a difficult one for many as unemployment increased, housing values decreased and the impact of an economic slowdown reverberated in stock markets around the world. As we enter a new market environment in which investors, regulators and legislators have a dramatically reduced tolerance for risk and a greater demand for transparency, investment professionals are increasingly turning to exchange traded funds (ETFs). Due to their convenience, transparency and ability to provide access to difficult-to-reach areas of the market, ETFs can play an important role in investor portfolios. Needless to say, Rydex is a proud participant in the ETF space with $4 billion in ETF assets and more than 40 exchange traded products. Growing Industry Influence. More investment advisors are gravitating to ETFs for their flexibility, transparency and lower expense ratios. In fact, nearly all of the advisors (83%) who took part in the Rydex AdvisorBenchmarking(TM) November 2008 Survey believe that ETFs will be their primary investment vehicle in 2009. While ETF assets have fallen 12.9% over the past 12 months to $495B from $569B, the number of ETF products in the market actually climbed 16% -- with greatest growth in global and international ETFs. According to the Investment Company Institute, there are now more than 719 ETFs in this category versus 614 a year ago -- a notable 41% increase. Some industry experts even see ETFs' popularity encroaching on sacred mutual fund territory. In April, Lipper reported that "Sales of new ETFs appear to be replacing sales of new mutual funds over the past several years. ETF launches now exceed 30% of all new (fund) products." Unprecedented Market Conditions. The financial crisis that unfolded earlier this year affected nearly every conceivable asset class, resulting in huge declines in wealth -- regardless of how investors had structured their portfolios. Other than treasury bills and the U.S. dollar, no investment class was spared the widespread panic that washed over the world's financial markets. In the U.S. alone, the major stock market averages lost more than 20% of their value as the entire financial system seized up and choked as the engine of any economy -- bank lending -- stalled out. The resulting crash in global stock markets was as steep as anything we witnessed since the historic stock market crash of 1929. Huge financial dominoes began to fall as Merrill Lynch, Morgan Stanley, Goldman Sachs and Lehman Brothers collapsed, merged with or were reborn as commercial banks. Among other things, the crisis showed us that the Wall Street formula of highly leveraged balance sheets, coupled with the need to access working capital on a daily basis, proved to be lethal when backed by seemingly worthless assets. And as the willingness to lend disappeared, so did Wall Street's daily lifeline. Historic Government Intervention. September 2008 proved to be a historic month for unprecedented government intervention in the equity markets. On September 18, the U.S. Treasury announced the establishment of a temporary guarantee program for money market mutual funds after the Reserve Primary Fund "broke the buck" -- causing a massive exodus from money market mutual funds. The next day, on September 19, the Securities and Exchange Commission (SEC) issued a temporary ban prohibiting the short sales of certain financial securities. We complied with the SEC action by suspending trading of the Rydex Inverse 2x S&P Select Sector Financial ETF until the ban was lifted on October 8, 2008. The month of September also saw the takeover of Fannie Mae, Freddie Mac and AIG, the seizure of IndyMac Bank and Washington Mutual, which pointed to a near takeover of the global financial system by the government. In this history-making period, government at all levels moved with unprecedented speed, scope and coordination to save the financial system and with it the global economy. This culminated with a $700 billion plan put forward by the U.S. Treasury to essentially buy up all the bad mortgage assets clogging the financial system. Newly sworn-in government officials committed $12 trillion to programs designed to offset credit and sub-prime mortgage-related issues that were negatively impacting the financial services industry. This historic government intervention kicked into high gear during the fall when Congress established The Emergency Economic Stabilization Act of 2008 (EESA) in an effort to help strengthen the U.S. economy. Primarily, the act authorized the Troubled Assets Relief Program (TARP), which was originally structured to purchase troubled assets from ailing banks but quickly morphed into an effort to recapitalize the banking industry. Signs of a Recovery. The question at the forefront of everyone's mind still remains: Will it all work? While it looks like the Dow Jones Industrial Average finally found its bottom of 6547.05 on March 9, investors still remain cautious. The new administration has rightly made the economy its top priority and we are starting to see some proverbial light at the end of the tunnel. All major U.S. indices ended April in positive territory with the NASDAQ Composite posting a 12.35% gain, the S&P 500 jumping to 9.39% and the Dow Industrials closing out the month with a respectable 7.35% gain. In fact, April proved to be a solid month of recovery as the NASDAQ reported its best April percentage gain since 2001 (when it gained 14.99%), the S&P posted its best gain since 1938 (when it gained 15.06%) and the Dow had its best monthly gain since last March, when it rose 7.77%. On the housing front, home-sales figures in recent weeks have shown a slower pace of decline and the slide in property prices appears to have stabilized. Former Federal Reserve Chairman Alan Greenspan even went on record in early May stating that the U.S. housing market may be on the verge of a recovery and that it's "very easy to see" the financial markets continuing to improve. While there's still SEMI-ANNUAL REPORT 3 LETTER TO OUR SHAREHOLDERS (CONTINUED) -------------------------------------------------------------------------------- a long way to go to repair the carnage we experienced over the past six months, I'm optimistic that we can -- and will -- endure. We appreciate the trust that you have placed in our firm's quality and integrity by investing with us. It is our goal to continue to offer you a wide variety of ETFs to help you meet your financial goals. Sincerely, -s- David C. Reilly, CFA Mike Byrum, CFA President and Chief Investment Officer Read the fund's prospectus carefully before investing. It contains the fund's investment objectives, risks, charges, expenses and other information. Obtain a prospectus at rydexinvestments.com or call 800.258.4332. The opinions and forecasts expressed are those of Security Global Investors as of June 1, 2009, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or strategy. AdvisorBenchmarking.com and the Rydex PracticeValue program are services of Advisor Research Center, Inc., an affiliate of Rydex Investments. Advisor Research Center, Inc., and its affiliates make no warranties, expressed or implied, as to results to be obtained from the use of information provided by the Rydex PracticeValue program and/or AdvisorBenchmarking.com, and Advisor Research Center, Inc., expressly disclaims all warranties of merchantability or fitness for a particular purpose of use with respect thereto. While Advisor Research Center, Inc., believes the information to be reliable, Advisor Research Center, Inc., and its affiliates shall not be liable for any claims or losses of any nature in connection with the information contained in this publication. 4 FEES AND EXPENSES (Unaudited) -------------------------------------------------------------------------------- SHAREHOLDER EXPENSE EXAMPLE As a shareholder of the Rydex ETF Trust, you incur transaction costs such as creation and redemption fees or brokerage charges, and ongoing costs including advisory fees, trustee fees and, if applicable, distribution fees. All other Trust expenses are paid by the advisor. This Example is intended to help you understand your 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 example in the table is based on an investment of $1,000 invested on October 31, 2008 and held for the six months ended April 30, 2009. ACTUAL EXPENSES The first table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first table under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses attributable to your investment during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation and redemption fees, or brokerage charges. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING EXPENSE VALUE VALUE SIX-MONTH PERIOD* RATIO 10/31/08 4/30/09 10/31/08 TO 4/30/09 ------- --------- --------- ------------------- ACTUAL Rydex 2x S&P 500 ETF....................... 0.70% $1,000.00 $ 900.70 $3.30 Rydex Inverse 2x S&P 500 ETF............... 0.70% 1,000.00 737.90 3.02 Rydex 2x MidCap 400 ETF.................... 0.70% 1,000.00 849.10 3.21 Rydex Inverse 2x S&P MidCap 400 ETF........ 0.70% 1,000.00 686.90 2.93 Rydex 2x Russell 2000 ETF.................. 0.70% 1,000.00 707.20 2.96 Rydex Inverse 2x Russell 2000 ETF.......... 0.70% 1,000.00 744.40 3.03 Rydex 2x S&P Select Sector Energy ETF...... 0.70% 1,000.00 682.80 2.92 Rydex Inverse 2x S&P Select Sector Energy ETF..................................... 0.70% 1,000.00 744.80 3.03 Rydex 2x S&P Select Sector Financial ETF... 0.71% 1,000.00 294.90 2.25 Rydex Inverse 2x S&P Select Sector Financial ETF........................... 0.70% 1,000.00 410.20 2.45 Rydex 2x S&P Select Sector Health Care ETF..................................... 0.71% 1,000.00 772.00 3.08 Rydex Inverse 2x S&P Select Sector Health Care ETF................................ 0.70% 1,000.00 1,055.30 3.57 Rydex 2x S&P Select Sector Technology ETF.. 0.71% 1,000.00 997.80 3.47 Rydex Inverse 2x S&P Select Sector Technology ETF.......................... 0.70% 1,000.00 662.40 2.89 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex 2x S&P 500 ETF....................... 0.70% 1,000.00 1,021.32 3.51 Rydex Inverse 2x S&P 500 ETF............... 0.70% 1,000.00 1,021.32 3.51 Rydex 2x MidCap 400 ETF.................... 0.70% 1,000.00 1,021.32 3.51 Rydex Inverse 2x S&P MidCap 400 ETF........ 0.70% 1,000.00 1,021.32 3.51 Rydex 2x Russell 2000 ETF.................. 0.70% 1,000.00 1,021.32 3.51 Rydex Inverse 2x Russell 2000 ETF.......... 0.70% 1,000.00 1,021.32 3.51 Rydex 2x S&P Select Sector Energy ETF...... 0.70% 1,000.00 1,021.32 3.51 Rydex Inverse 2x S&P Select Sector Energy ETF..................................... 0.70% 1,000.00 1,021.32 3.51 Rydex 2x S&P Select Sector Financial ETF... 0.71% 1,000.00 1,021.27 3.56 Rydex Inverse 2x S&P Select Sector Financial ETF........................... 0.70% 1,000.00 1,021.32 3.51 Rydex 2x S&P Select Sector Health Care ETF..................................... 0.71% 1,000.00 1,021.27 3.56 Rydex Inverse 2x S&P Select Sector Health Care ETF................................ 0.70% 1,000.00 1,021.32 3.51 Rydex 2x S&P Select Sector Technology ETF.. 0.71% 1,000.00 1,021.27 3.56 Rydex Inverse 2x S&P Select Sector Technology ETF.......................... 0.70% 1,000.00 1,021.32 3.51
-------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period). SEMI-ANNUAL REPORT 5 A BRIEF NOTE ON THE COMPOUNDING OF RETURNS -------------------------------------------------------------------------------- The Funds described in this report are benchmarked daily to leveraged or inverse 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% gain and an expectation that the fund will rise by 9%. 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 FUND LEVEL PERFORMANCE EXPECTATION NAV PERFORMANCE ASSESSMENT --------------------------------------------------------------------------------------------------------- Start 100 $10.00 Day 1 106 6.00% 9.00% $10.90 9.00% In line Day 2 99 (6.60)% (9.90)% $ 9.82 (9.90)% In line Cumulative (1.00)% (1.50)% (1.80)% (0.30)% ---------------------------------------------------------------------------------------------------------
As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index. Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds' returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds' holdings consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund's shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus. In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor's favor, causing the fund to seemingly beat its benchmark. As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect. 6 PREMIUM AND DISCOUNT INFORMATION (Unaudited) -------------------------------------------------------------------------------- The tables that follow present information about the differences between the daily market price on secondary markets for shares of the Funds and each Fund's NAV. NAV is the price per share at which a Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The "Market Price" of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the Exchange on which the Fund is listed for trading, as of the time the Fund's NAV is calculated. A Fund's Market Price may be at, above or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply of and demand for shares of the Funds. Premiums or discounts are the differences (generally expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a positive percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a negative percentage of the NAV. The following information shows the frequency distribution of premiums and discounts for the Funds. The information shown for each Fund is for the six months ended April 30, 2009. Each line in the table shows the number of trading days in which the Funds traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by the table. All data presented here represents past performance, which cannot be used to predict future results. SEMI-ANNUAL REPORT 7 PREMIUM AND DISCOUNT INFORMATION (Unaudited) (continued) --------------------------------------------------------------------------------
NUMBER OF DAYS ----------------------------------------------------------------------- RYDEX RYDEX RYDEX INVERSE RYDEX RYDEX RYDEX INVERSE 2X S&P 2X S&P RYDEX INVERSE 2X 2X S&P 2X S&P 2X S&P MIDCAP MIDCAP 2X RUSSELL RUSSELL SELECT SECTOR 500 500 400 400 2000 2000 ENERGY ETF ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ------ ------- ------ ------- ---------- ---------- ------------- Greater than 10%..................... 0 0 1 0 0 0 0 Between 8.01% and 10%................ 0 0 0 1 0 0 0 Between 3.01% and 8%................. 7 1 8 11 6 10 16 Between 1.01% and 3%................. 16 11 36 36 27 19 25 Between .51% and 1%.................. 36 35 28 34 36 35 27 Between .26% and .5%................. 36 34 33 37 30 51 20 Between .25% and 0%.................. 93 123 68 76 74 73 27 Between -0.01% and -0.25%............ 103 101 58 68 61 79 22 Between -0.26% and -0.5%............. 45 34 38 36 45 38 21 Between -0.51% and -1%............... 22 17 45 33 43 33 25 Between -1.01% and -3%............... 16 14 52 32 41 30 33 Between -3.01% and -8%............... 0 4 7 10 11 6 8 Less than -8%........................ 0 0 0 0 0 0 1 Total................................ 374 374 374 374 374 374 225
PERCENTAGE OF TOTAL DAYS -------------------------------------------------------------------------- RYDEX RYDEX RYDEX INVERSE 2X RYDEX RYDEX RYDEX INVERSE 2X S&P S&P RYDEX INVERSE 2X 2X $&P 2X S&P 2X S&P MIDCAP MIDCAP 2X RUSSELL RUSSELL SELECT 500 500 400 400 2000 2000 SECTOR ENERGY ETF ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ------ ------- ------ ---------- ---------- ---------- ------------- Greater than 10%.................... 0.00% 0.00% 0.27% 0.00% 0.00% 0.00% 0.00% Between 8.01% and 10%............... 0.00% 0.00% 0.00% 0.27% 0.00% 0.00% 0.00% Between 3.01% and 8%................ 1.87% 0.27% 2.14% 2.94% 1.60% 2.67% 7.11% Between 1.01% and 3%................ 4.28% 2.94% 9.63% 9.63% 7.22% 5.08% 11.11% Between .51% and 1%................. 9.63% 9.36% 7.49% 9.09% 9.63% 9.36% 12.00% Between .26% and .5%................ 9.63% 9.09% 8.82% 9.89% 8.02% 13.64% 8.89% Between .25% and 0%................. 24.87% 32.89% 18.18% 20.32% 19.79% 19.52% 12.00% Between -0.01% and -0.25%........... 27.54% 27.01% 15.51% 18.18% 16.31% 21.12% 9.78% Between -0.26% and -0.5%............ 12.03% 9.09% 10.16% 9.63% 12.03% 10.16% 9.33% Between -0.51% and -1%.............. 5.88% 4.55% 12.03% 8.82% 11.50% 8.82% 11.11% Between -1.01% and -3%.............. 4.28% 3.74% 13.90% 8.56% 10.96% 8.02% 14.67% Between -3.01% and -8%.............. 0.00% 1.07% 1.87% 2.67% 2.94% 1.60% 3.56% Less than -8%....................... 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.44% Total............................... 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
8 PREMIUM AND DISCOUNT INFORMATION (Unaudited) (concluded) --------------------------------------------------------------------------------
NUMBER OF DAYS -------------------------------------------------------------------------------------------- RYDEX RYDEX RYDEX RYDEX INVERSE 2X RYDEX INVERSE 2X RYDEX INVERSE 2X RYDEX INVERSE 2X S&P SELECT 2X S&P S&P SELECT 2X S&P S&P SELECT 2X S&P S&P SELECT SECTOR SELECT SECTOR SECTOR SELECT SECTOR SECTOR SELECT SECTOR SECTOR ENERGY FINANCIAL FINANCIAL HEALTH CARE HEALTH CARE TECHNOLOGY TECHNOLOGY ETF ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ---------- ------------- ---------- ------------- ----------- ------------- ---------- Greater than 10%................. 1 1 0 1 5 3 0 Between 8.01% and 10%............ 1 1 0 1 3 1 1 Between 3.01% and 8%............. 9 14 10 10 10 8 11 Between 1.01% and 3%............. 31 46 34 32 34 30 27 Between .51% and 1%.............. 28 29 23 14 19 22 18 Between .26% and .5%............. 16 24 16 10 11 9 7 Between .25% and 0%.............. 24 15 29 38 18 23 21 Between -0.01% and -0.25%........ 20 12 20 25 35 24 27 Between -0.26% and -0.5%......... 19 20 16 10 18 13 13 Between -0.51% and -1%........... 23 14 29 18 28 15 30 Between -1.01% and -3%........... 38 35 35 47 24 33 42 Between -3.01% and -8%........... 14 13 13 17 18 40 28 Between -8.01% and -10%.......... 0 0 0 1 2 1 0 Less than -10%................... 1 1 0 1 0 3 0 Total............................ 225 225 225 225 225 225 225
PERCENTAGE OF TOTAL DAYS -------------------------------------------------------------------------------------------- RYDEX RYDEX RYDEX RYDEX INVERSE 2X RYDEX INVERSE 2X RYDEX INVERSE 2X RYDEX INVERSE 2X S&P SELECT 2X S&P S&P SELECT 2X S&P S&P SELECT 2X S&P S&P SELECT SECTOR SELECT SECTOR SECTOR SELECT SECTOR SECTOR SELECT SECTOR SECTOR ENERGY FINANCIAL FINANCIAL HEALTH CARE HEALTH CARE TECHNOLOGY TECHNOLOGY ETF ETF ETF ETF ETF ETF ETF PREMIUM/DISCOUNT RANGE ---------- ------------- ---------- ------------- ----------- ------------- ---------- Greater than 10%................. 0.44% 0.44% 0.00% 0.44% 2.22% 1.33% 0.00% Between 8.01% and 10%............ 0.44% 0.44% 0.00% 0.44% 1.33% 0.44% 0.44% Between 3.01% and 8%............. 4.00% 6.22% 4.44% 4.44% 4.44% 3.56% 4.89% Between 1.01% and 3%............. 13.78% 20.44% 15.11% 14.22% 15.11% 13.33% 12.00% Between .51% and 1%.............. 12.44% 12.89% 10.22% 6.22% 8.44% 9.78% 8.00% Between .26% and .5%............. 7.11% 10.67% 7.11% 4.44% 4.89% 4.00% 3.11% Between .25% and 0%.............. 10.67% 6.67% 12.89% 16.89% 8.00% 10.22% 9.33% Between -0.01% and -0.25%........ 8.89% 5.33% 8.89% 11.11% 15.56% 10.67% 12.00% Between -0.26% and -0.5%......... 8.44% 8.89% 7.11% 4.44% 8.00% 5.78% 5.78% Between -0.51% and -1%........... 10.22% 6.22% 12.89% 8.00% 12.44% 6.67% 13.33% Between -1.01% and -3%........... 16.89% 15.56% 15.56% 20.89% 10.67% 14.67% 18.67% Between -3.01% and -8%........... 6.22% 5.78% 5.78% 7.56% 8.00% 17.78% 12.44% Between -8.01% and -10%.......... 0.00% 0.00% 0.00% 0.44% 0.89% 0.44% 0.00% Less than -10%................... 0.44% 0.44% 0.00% 0.44% 0.00% 1.33% 0.00% Total............................ 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
SEMI-ANNUAL REPORT 9 RYDEX 2X S&P 500 ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 3.53% MICROSOFT CORP. 1.66% AT&T, INC. 1.62% PROCTER & GAMBLE CO. 1.55% JOHNSON & JOHNSON, INC. 1.55% INTERNATIONAL BUSINESS MACHINES CORP. 1.49% GENERAL ELECTRIC CO. 1.43% CHEVRON CORP. 1.42% JPMORGAN CHASE & CO. 1.33% CISCO SYSTEMS, INC. 1.21% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 18.40 Health Care 13.83 Energy 12.51 Financials 12.19 Consumer Staples 12.04 Industrials 10.44 Consumer Discretionary 9.52 Utilities 3.98 Telecommunication Services 3.72 Materials 3.37
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. 10 RYDEX 2X S&P MIDCAP 400 ETF PORTFOLIO SUMMARY (Unaudited) As April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ VERTEX PHARMACEUTICALS, INC. 0.64% WESTERN DIGITAL CORP. 0.63% ROSS STORES, INC. 0.59% EVEREST RE GROUP, LTD. 0.55% QUANTA SERVICES, INC. 0.53% FMC TECHNOLOGIES, INC. 0.52% FIDELITY NATIONAL FINANCIAL, INC. -- CLASS A 0.50% NEWFIELD EXPLORATION CO. 0.50% ADVANCE AUTO PARTS, INC. 0.50% ROPER INDUSTRIES, INC. 0.49% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 18.15 Consumer Discretionary 15.65 Industrials 15.18 Information Technology 14.28 Health Care 12.05 Materials 7.19 Energy 6.57 Utilities 6.34 Consumer Staples 3.99 Telecommunication Services 0.60
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 11 RYDEX 2X RUSSELL 2000 ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ MYRIAD GENETICS, INC. 0.39% RALCORP HOLDINGS, INC. 0.36% ALEXION PHARMACEUTICALS, INC. 0.31% SYBASE, INC. 0.30% AEROPOSTALE, INC. 0.26% REALTY INCOME CORP. 0.25% WATSON WYATT WORLDWIDE, INC. -- CLASS A 0.25% ITC HOLDINGS CORP. 0.24% DENDREON CORP. 0.23% WASTE CONNECTIONS, INC. 0.23% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 20.19 Information Technology 18.67 Industrials 16.06 Health Care 14.11 Consumer Discretionary 13.60 Energy 4.39 Utilities 3.97 Consumer Staples 3.93 Materials 3.83 Telecommunication Services 1.25
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. 12 RYDEX 2X S&P SELECT SECTOR ENERGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 17.71% CHEVRON CORP. 11.66% CONOCOPHILLIPS 5.51% SCHLUMBERGER, LTD. 4.19% OCCIDENTAL PETROLEUM CORP. 3.61% APACHE CORP. 2.47% DEVON ENERGY CORP. 2.36% MARATHON OIL CORP. 2.18% XTO ENERGY, INC. 2.09% ANADARKO PETROLEUM CORP. 2.06% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Oil, Gas & Consumable Fuels 81.98 Energy Equipment & Services 17.15 Gas Utilities 0.87
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 13 RYDEX S&P SELECT SECTOR FINANCIAL ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ JPMORGAN CHASE & CO. 11.01% WELLS FARGO & CO. 7.53% GOLDMAN SACHS GROUP, INC. 5.73% BANK OF AMERICA CORP. 5.07% U.S. BANCORP 2.84% AMERICAN EXPRESS CO. 2.62% BANK OF NEW YORK MELLON CORP. 2.60% MORGAN STANLEY 2.25% METLIFE, INC. 2.16% TRAVELERS COS., INC. 2.14% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Diversified Financial Services 25.74 Capital Markets 21.85 Insurance 19.08 Commercial Banks 18.82 Real Estate Investment Trusts (REITs) 8.46 Consumer Finance 4.57 Thrifts & Mortgage Finance 1.30 Real Estate Management & Development 0.18
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. 14 RYDEX 2X S&P SELECT SECTOR HEALTH CARE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ JOHNSON & JOHNSON, INC. 11.58% PFIZER, INC. 7.21% WYETH 4.53% ABBOTT LABORATORIES 4.38% MERCK & CO., INC. 4.09% AMGEN, INC. 4.01% GILEAD SCIENCES, INC. 3.34% BRISTOL-MYERS SQUIBB CO. 3.06% SCHERING-PLOUGH CORP. 3.03% MEDTRONIC, INC. 2.88% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Pharmaceuticals 51.30 Health Care Equipment & Supplies 16.07 Health Care Providers & Services 15.61 Biotechnology 13.87 Life Sciences Tools & Services 2.92 Health Care Technology 0.23
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 15 RYDEX 2X S&P SELECT SECTOR TECHNOLOGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2009 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ MICROSOFT CORP. 7.70% AT&T, INC. 7.51% INTERNATIONAL BUSINESS MACHINES CORP. 6.89% CISCO SYSTEMS, INC. 5.61% APPLE, INC. 5.58% VERIZON COMMUNICATIONS, INC. 4.29% GOOGLE, INC. -- CLASS A 3.99% HEWLETT-PACKARD CO. 3.80% ORACLE CORP. 3.71% INTEL CORP. 3.60% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Computers & Peripherals 23.84 Software 18.80 Diversified Telecommunication Services 15.47 Communications Equipment 14.46 Semiconductors & Semiconductor Equipment 11.00 Internet Software & Services 7.63 IT Services 5.26 Electronic Equipment & Instruments 1.63 Wireless Telecommunication Services 1.56 Office Electronics 0.35
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. 16 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------- COMMON STOCKS 81.4% AEROSPACE & DEFENSE 2.3% Boeing Co. ................ 11,433 $457,892 General Dynamics Corp. .... 6,080 314,154 Goodrich Corp. ............ 1,952 86,434 Honeywell International, Inc. ................... 11,577 361,318 ITT Corp. ................. 2,866 117,535 L-3 Communications Holdings, Inc. ......... 1,868 142,248 Lockheed Martin Corp. ..... 5,230 410,712 Northrop Grumman Corp. .... 5,156 249,293 Precision Castparts Corp. .................. 2,200 164,692 Raytheon Co. .............. 6,298 284,858 Rockwell Collins, Inc. .... 2,488 95,415 United Technologies Corp. .................. 14,835 724,541 ------------ TOTAL AEROSPACE & DEFENSE 3,409,092 ------------ AIR FREIGHT & LOGISTICS 0.9% C.H. Robinson Worldwide, Inc. ................... 2,682 142,575 Expeditors International of Washington, Inc. ....... 3,338 115,862 FedEx Corp. ............... 4,902 274,316 United Parcel Service, Inc. -- Class B......... 15,675 820,430 ------------ TOTAL AIR FREIGHT & LOGISTICS 1,353,183 ------------ AIRLINES 0.1% Southwest Airlines Co. .... 11,657 81,366 ------------ TOTAL AIRLINES 81,366 ------------ AUTO COMPONENTS 0.1% Goodyear Tire & Rubber Co.(The)*............... 3,800 41,762 Johnson Controls, Inc. .... 9,358 177,896 ------------ TOTAL AUTO COMPONENTS 219,658 ------------ AUTOMOBILES 0.2% Ford Motor Co.*............ 45,084 269,602 General Motors Corp. ...... 9,606 18,444 Harley-Davidson, Inc. ..... 3,676 81,460 ------------ TOTAL AUTOMOBILES 369,506 ------------ BEVERAGES 2.0% Brown-Forman Corp. -- Class B....................... 1,550 72,075 Coca-Cola Co.(The)......... 31,341 1,349,230 Coca-Cola Enterprises, Inc. ................... 4,992 85,164 Constellation Brands, Inc. -- Class A*........ 3,070 35,581 Dr Pepper Snapple Group, Inc.*................... 3,988 82,591 Molson Coors Brewing Co. -- Class B.......... 2,354 90,040 Pepsi Bottling Group, Inc. ................... 2,136 66,793 PepsiCo, Inc. ............. 24,501 1,219,170 ------------ TOTAL BEVERAGES 3,000,644 ------------ BIOTECHNOLOGY 1.6% Amgen, Inc.*............... 16,281 789,140 Biogen Idec, Inc.*......... 4,684 226,424 Celgene Corp.*............. 7,232 308,951 Cephalon, Inc.*............ 1,088 71,384 Genzyme Corp.*............. 4,272 227,826 Gilead Sciences, Inc.*..... 14,339 656,726 ------------ TOTAL BIOTECHNOLOGY 2,280,451 ------------ BUILDING PRODUCTS 0.0%(A) Masco Corp. ............... 5,662 50,165 ------------ TOTAL BUILDING PRODUCTS 50,165 ------------ CAPITAL MARKETS 2.2% Ameriprise Financial, Inc. ................... 3,442 90,697 Bank of New York Mellon Corp. .................. 18,089 460,908 Charles Schwab Corp.(The).. 14,761 272,783 E*TRADE Financial Corp.*... 9,000 12,870 Federated Investors, Inc. -- Class B......... 1,406 32,169 Franklin Resources, Inc. .. 2,384 144,184 Goldman Sachs Group, Inc.(The)............... 7,912 1,016,692 Invesco Ltd. .............. 5,950 87,584 Janus Capital Group, Inc. ................... 2,488 24,955 Legg Mason, Inc. .......... 2,250 45,157 Morgan Stanley............. 16,917 399,918 Northern Trust Corp. ...... 3,750 203,850 State Street Corp. ........ 6,800 232,084 T. Rowe Price Group, Inc. ................... 4,028 155,159 ------------ TOTAL CAPITAL MARKETS 3,179,010 ------------ CHEMICALS 1.6% Air Products & Chemicals, Inc. ................... 3,298 217,338 CF Industries Holdings, Inc. ................... 760 54,758 Dow Chemical Co.(The)...... 14,547 232,752 Du Pont (E.I.) de Nemours & Co. .................... 14,205 396,320 Eastman Chemical Co. ...... 1,142 45,315 Ecolab, Inc. .............. 2,642 101,849 International Flavors & Fragrances, Inc. ....... 1,242 38,750 Monsanto Co. .............. 8,628 732,431 PPG Industries, Inc. ...... 2,588 114,001 Praxair, Inc. ............. 4,838 360,963 Sigma-Aldrich Corp. ....... 1,922 84,261 ------------ TOTAL CHEMICALS 2,378,738 ------------ COMMERCIAL BANKS 1.9% BB&T Corp. ................ 8,812 205,672 Comerica, Inc. ............ 2,384 50,016 Fifth Third Bancorp........ 9,090 37,269 First Horizon National Corp. .................. 3,318 38,190 Huntington Bancshares, Inc. ................... 5,762 16,076 KeyCorp.................... 7,788 47,896 M&T Bank Corp. ............ 1,222 64,094 Marshall & Ilsley Corp. ... 4,172 24,114 PNC Financial Services Group, Inc. ............ 6,740 267,578 Regions Financial Corp. ... 10,931 49,080 SunTrust Banks, Inc. ...... 5,618 81,124 U.S. Bancorp............... 27,625 503,328 Wells Fargo & Co. ......... 66,709 1,334,847 Zions Bancorp.............. 1,818 19,871 ------------ TOTAL COMMERCIAL BANKS 2,739,155 ------------ COMMERCIAL SERVICES & SUPPLIES 0.6% Avery Dennison Corp. ...... 1,778 51,100 Cintas Corp. .............. 2,066 53,013 Dun & Bradstreet Corp. .... 834 67,887 Equifax, Inc. ............. 1,992 58,087 Iron Mountain, Inc.*....... 2,826 80,513 Monster Worldwide, Inc.*... 2,012 27,766 Pitney Bowes, Inc. ........ 3,248 79,706 R.R. Donnelley & Sons Co. .................... 3,234 37,676 Republic Services, Inc. ... 5,066 106,386 Robert Half International, Inc. ................... 2,384 57,264 Stericycle, Inc.*.......... 1,346 63,370 Waste Management, Inc. .... 7,744 206,532 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 889,300 ------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------- COMMON STOCKS (CONTINUED) COMMUNICATIONS EQUIPMENT 2.5% Ciena Corp.*............... 1,426 $17,041 Cisco Systems, Inc.*....... 91,886 1,775,238 Corning, Inc. ............. 24,481 357,912 Harris Corp. .............. 2,106 64,401 JDS Uniphase Corp.*........ 3,388 15,619 Juniper Networks, Inc.*.... 8,220 177,963 Motorola, Inc. ............ 35,840 198,195 QUALCOMM, Inc. ............ 25,967 1,098,923 Tellabs, Inc.*............. 6,234 32,666 ------------ TOTAL COMMUNICATIONS EQUIPMENT 3,737,958 ------------ COMPUTERS & PERIPHERALS 4.3% Apple, Inc.*............... 14,021 1,764,262 Dell, Inc.*................ 27,243 316,564 EMC Corp.*................. 31,679 396,938 Hewlett-Packard Co. ....... 37,722 1,357,238 International Business Machines Corp. ......... 21,119 2,179,692 Lexmark International, Inc. -- Class A*........ 1,222 23,976 NetApp, Inc.*.............. 5,200 95,160 QLogic Corp.*.............. 1,902 26,970 SanDisk Corp.*............. 3,556 55,900 Sun Microsystems, Inc.*.... 11,721 107,364 Teradata Corp.*............ 2,722 45,512 ------------ TOTAL COMPUTERS & PERIPHERALS 6,369,576 ------------ CONSTRUCTION & ENGINEERING 0.1% Fluor Corp. ............... 2,856 108,157 Jacobs Engineering Group, Inc.*................... 1,932 73,493 ------------ TOTAL CONSTRUCTION & ENGINEERING 181,650 ------------ CONSTRUCTION MATERIALS 0.1% Vulcan Materials Co. ...... 1,738 82,642 ------------ TOTAL CONSTRUCTION MATERIALS 82,642 ------------ CONSUMER FINANCE 0.5% American Express Co. ...... 18,437 464,981 Capital One Financial Corp. .................. 6,164 103,185 Discover Financial Services................ 7,580 61,625 SLM Corp.*................. 7,356 35,530 ------------ TOTAL CONSUMER FINANCE 665,321 ------------ CONTAINERS & PACKAGING 0.2% Ball Corp. ................ 1,480 55,825 Bemis Co., Inc. ........... 1,570 37,743 Owens-Illinois, Inc.*...... 2,638 64,341 Pactiv Corp.*.............. 2,066 45,163 Sealed Air Corp. .......... 2,478 47,231 ------------ TOTAL CONTAINERS & PACKAGING 250,303 ------------ DISTRIBUTORS 0.1% Genuine Parts Co. ......... 2,508 85,172 ------------ TOTAL DISTRIBUTORS 85,172 ------------ DIVERSIFIED CONSUMER SERVICES 0.1% Apollo Group, Inc. -- Class A*...................... 1,684 106,008 H&R Block, Inc. ........... 5,344 80,908 ------------ TOTAL DIVERSIFIED CONSUMER SERVICES 186,916 ------------ DIVERSIFIED FINANCIAL SERVICES 2.5% Bank of America Corp. ..... 100,772 899,894 CIT Group, Inc. ........... 6,114 13,573 Citigroup, Inc. ........... 86,208 262,935 CME Group, Inc. ........... 1,048 231,975 IntercontinentalExchange, Inc.*................... 1,142 100,039 JPMorgan Chase & Co. ...... 59,159 1,952,247 Leucadia National Corp.*... 2,856 60,633 Moody's Corp. ............. 3,000 88,560 Nasdaq OMX Group (The)*.... 2,166 41,652 NYSE Euronext.............. 4,078 94,487 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 3,745,995 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 2.8% AT&T, Inc. ................ 92,780 2,377,024 CenturyTel, Inc. .......... 1,580 42,897 Embarq Corp. .............. 2,240 81,894 Frontier Communications Corp. .................. 4,902 34,853 Qwest Communications International, Inc. .... 23,135 89,995 Verizon Communications, Inc. ................... 44,716 1,356,684 Windstream Corp. .......... 6,944 57,635 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 4,040,982 ------------ ELECTRIC UTILITIES 1.9% Allegheny Energy, Inc. .... 2,662 68,999 American Electric Power Co., Inc. .............. 7,336 193,524 Duke Energy Corp. ......... 20,165 278,479 Edison International....... 5,126 146,142 Entergy Corp. ............. 2,980 193,015 Exelon Corp. .............. 10,366 478,184 FirstEnergy Corp. ......... 4,798 196,238 FPL Group, Inc. ........... 6,432 345,977 Northeast Utilities........ 2,712 57,006 Pepco Holdings, Inc. ...... 3,452 41,251 Pinnacle West Capital Corp. .................. 1,584 43,370 PPL Corp. ................. 5,906 176,648 Progress Energy, Inc. ..... 4,336 147,944 Southern Co. .............. 12,243 353,578 ------------ TOTAL ELECTRIC UTILITIES 2,720,355 ------------ ELECTRICAL EQUIPMENT 0.4% Cooper Industries, Ltd. -- Class A......... 2,638 86,500 Emerson Electric Co. ...... 11,885 404,565 Rockwell Automation, Inc. ................... 2,230 70,446 ------------ TOTAL ELECTRICAL EQUIPMENT 561,511 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Agilent Technologies, Inc.*................... 5,538 101,124 Amphenol Corp. -- Class A.. 2,692 91,097 FLIR Systems, Inc.*........ 2,374 52,655 Jabil Circuit, Inc. ....... 3,368 27,281 Molex, Inc. ............... 2,186 36,441 Tyco Electronics, Ltd. .... 7,212 125,777 ------------ TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 434,375 ------------ ENERGY EQUIPMENT & SERVICES 1.4% Baker Hughes, Inc. ........ 4,868 173,203 BJ Services Co. ........... 4,594 63,811 Cameron International Corp.*.................. 3,412 87,279 Diamond Offshore Drilling, Inc. ................... 1,098 79,506 ENSCO International, Inc. ................... 2,230 63,064 Halliburton Co. ........... 14,125 285,608 Nabors Industries, Ltd.*... 4,450 67,685 National-Oilwell Varco, Inc.*................... 6,566 198,818 Rowan Cos., Inc. .......... 1,778 27,755 Schlumberger, Ltd. ........ 18,829 922,433 Smith International, Inc. ................... 3,452 89,234 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 2,058,396 ------------
See Notes to Financial Statements. 18 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD & STAPLES RETAILING 2.7% Costco Wholesale Corp. .... 6,820 $331,452 CVS Caremark Corp. ........ 22,917 728,302 Kroger Co.(The)............ 10,272 222,081 Safeway, Inc. ............. 6,750 133,313 SUPERVALU, Inc. ........... 3,338 54,576 Sysco Corp. ............... 9,278 216,456 Wal-Mart Stores, Inc. ..... 35,194 1,773,778 Walgreen Co. .............. 15,531 488,139 Whole Foods Market, Inc. .. 2,210 45,813 ------------ TOTAL FOOD & STAPLES RETAILING 3,993,910 ------------ FOOD PRODUCTS 1.4% Archer-Daniels-Midland Co. .................... 10,108 248,859 Campbell Soup Co. ......... 3,224 82,921 ConAgra Foods, Inc. ....... 7,038 124,573 Dean Foods Co.*............ 2,434 50,384 General Mills, Inc. ....... 5,166 261,865 H.J. Heinz Co. ............ 4,952 170,448 Hershey Co.(The)........... 2,608 94,253 Hormel Foods Corp. ........ 1,098 34,356 J.M. Smucker Co.(The)...... 1,868 73,599 Kellogg Co. ............... 3,974 167,345 Kraft Foods, Inc. -- Class A....................... 23,125 541,125 McCormick & Co., Inc. ..... 2,046 60,255 Sara Lee Corp. ............ 10,951 91,112 Tyson Foods, Inc. -- Class A....................... 4,758 50,149 ------------ TOTAL FOOD PRODUCTS 2,051,244 ------------ GAS UTILITIES 0.1% EQT Corp. ................. 2,056 69,143 Nicor, Inc. ............... 710 22,820 Questar Corp. ............. 2,732 81,195 ------------ TOTAL GAS UTILITIES 173,158 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 1.8% Baxter International, Inc. ................... 9,666 468,801 Becton, Dickinson & Co. ... 3,770 228,010 Boston Scientific Corp.*... 23,647 198,871 C.R. Bard, Inc. ........... 1,570 112,459 Covidien, Ltd. ............ 7,932 261,597 Dentsply International, Inc. ................... 2,334 66,799 Hospira, Inc.*............. 2,508 82,438 Intuitive Surgical, Inc.*.. 616 88,538 Medtronic, Inc. ........... 17,607 563,424 St Jude Medical, Inc.*..... 5,454 182,818 Stryker Corp. ............. 3,740 144,775 Varian Medical Systems, Inc.*................... 1,962 65,472 Zimmer Holdings, Inc.*..... 3,512 154,493 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,618,495 ------------ HEALTH CARE PROVIDERS & SERVICES 1.7% Aetna, Inc. ............... 7,138 157,107 AmerisourceBergen Corp. ... 2,394 80,534 Cardinal Health, Inc. ..... 5,672 191,657 CIGNA Corp. ............... 4,272 84,201 Coventry Health Care, Inc.*................... 2,334 37,134 DaVita, Inc.*.............. 1,634 75,769 Express Scripts, Inc.*..... 3,894 249,099 Humana, Inc.*.............. 2,652 76,325 Laboratory Corp. of America Holdings*............... 1,704 109,312 McKesson Corp. ............ 4,306 159,322 Medco Health Solutions, Inc.*................... 7,734 336,816 Patterson Cos., Inc.*...... 1,440 29,462 Quest Diagnostics, Inc. ... 2,434 124,937 Tenet Healthcare Corp.*.... 6,542 14,720 UnitedHealth Group, Inc. .. 19,137 450,102 WellPoint, Inc.*........... 7,848 335,580 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 2,512,077 ------------ HEALTH CARE TECHNOLOGY 0.0%(A) IMS Health, Inc. .......... 2,856 35,871 ------------ TOTAL HEALTH CARE TECHNOLOGY 35,871 ------------ HOTELS, RESTAURANTS & LEISURE 1.3% Carnival Corp. ............ 6,894 185,311 Darden Restaurants, Inc. .. 2,156 79,707 International Game Technology.............. 4,654 57,477 Marriott International, Inc. -- Class A......... 4,624 108,941 McDonald's Corp. .......... 17,533 934,334 Starbucks Corp.*........... 11,567 167,259 Starwood Hotels & Resorts Worldwide, Inc. ........ 2,876 59,993 Wyndham Worldwide Corp. ... 2,796 32,657 Wynn Resorts Ltd.*......... 1,048 41,113 Yum! Brands, Inc. ......... 7,242 241,521 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 1,908,313 ------------ HOUSEHOLD DURABLES 0.4% Black & Decker Corp. ...... 944 38,043 Centex Corp. .............. 1,962 21,464 D.R. Horton, Inc. ......... 4,336 56,585 Fortune Brands, Inc. ...... 2,364 92,929 Harman International Industries, Inc. ....... 924 16,807 KB HOME.................... 1,182 21,359 Leggett & Platt, Inc. ..... 2,474 35,527 Lennar Corp. -- Class A.... 2,220 21,623 Newell Rubbermaid, Inc. ... 4,366 45,625 Pulte Homes, Inc. ......... 3,378 38,881 Snap-on, Inc. ............. 904 30,664 Stanley Works(The)......... 1,242 47,233 Whirlpool Corp. ........... 1,152 52,024 ------------ TOTAL HOUSEHOLD DURABLES 518,764 ------------ HOUSEHOLD PRODUCTS 2.2% Clorox Co. ................ 2,190 122,750 Colgate-Palmolive Co. ..... 7,898 465,982 Kimberly-Clark Corp. ...... 6,512 320,000 Procter & Gamble Co. ...... 46,142 2,281,260 ------------ TOTAL HOUSEHOLD PRODUCTS 3,189,992 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.1% AES Corp.(The)*............ 10,490 74,164 Constellation Energy Group, Inc. ................... 3,134 75,467 Dynegy, Inc. -- Class A*... 7,972 14,190 ------------ TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 163,821 ------------ INDUSTRIAL CONGLOMERATES 1.9% 3M Co. .................... 10,921 629,050 General Electric Co. ...... 166,249 2,103,050 Textron, Inc. ............. 4,150 44,529 ------------ TOTAL INDUSTRIAL CONGLOMERATES 2,776,629 ------------ INSURANCE 1.9% AFLAC, Inc. ............... 7,356 212,515 Allstate Corp. ............ 8,444 196,998 American International Group, Inc. ............ 42,362 58,460
See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------- COMMON STOCKS (CONTINUED) Aon Corp. ................. 4,306 $181,713 Assurant, Inc. ............ 1,858 45,409 Chubb Corp. ............... 5,548 216,095 Cincinnati Financial Corp. .................. 2,558 61,264 Genworth Financial, Inc. -- Class A......... 6,820 16,095 Hartford Financial Services Group, Inc. ............ 5,116 58,680 Lincoln National Corp. .... 4,028 45,275 Loews Corp. ............... 5,682 141,425 Marsh & McLennan Cos., Inc. ................... 8,106 170,956 MBIA, Inc.*................ 2,692 12,733 MetLife, Inc. ............. 12,873 382,972 Principal Financial Group, Inc. ................... 4,088 66,798 Progressive Corp.*......... 10,654 162,793 Prudential Financial, Inc. ................... 6,676 192,803 Torchmark Corp. ........... 1,326 38,892 Travelers Cos., Inc.(The).. 9,204 378,653 Unum Group................. 5,210 85,131 XL Capital, Ltd. -- Class A....................... 5,384 51,202 ------------ TOTAL INSURANCE 2,776,862 ------------ INTERNET & CATALOG RETAIL 0.3% Amazon.com, Inc.*.......... 5,056 407,109 Expedia, Inc.*............. 3,298 44,886 ------------ TOTAL INTERNET & CATALOG RETAIL 451,995 ------------ INTERNET SOFTWARE & SERVICES 1.5% Akamai Technologies, Inc.*................... 2,682 59,058 eBay, Inc.*................ 16,961 279,348 Google, Inc. -- Class A*... 3,770 1,492,807 VeriSign, Inc.*............ 3,030 62,357 Yahoo!, Inc.*.............. 21,943 313,565 ------------ TOTAL INTERNET SOFTWARE & SERVICES 2,207,135 ------------ IT SERVICES 0.9% Affiliated Computer Services, Inc. -- Class A*...................... 1,540 74,505 Automatic Data Processing, Inc. ................... 7,952 279,910 Cognizant Technology Solutions Corp. -- Class A*...................... 4,594 113,885 Computer Sciences Corp.*... 2,384 88,113 Convergys Corp.*........... 1,922 19,431 Fidelity National Information Services, Inc. ................... 3,010 53,729 Fiserv, Inc.*.............. 2,454 91,583 Mastercard, Inc. -- Class A....................... 1,142 209,500 Paychex, Inc. ............. 5,056 136,563 Total System Services, Inc. ................... 3,104 38,707 Western Union Co. ......... 11,176 187,198 ------------ TOTAL IT SERVICES 1,293,124 ------------ LEISURE EQUIPMENT & PRODUCTS 0.1% Eastman Kodak Co. ......... 4,222 12,877 Hasbro, Inc. .............. 1,952 52,040 Mattel, Inc. .............. 5,648 84,494 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 149,411 ------------ LIFE SCIENCES TOOLS & SERVICES 0.3% Life Technologies Corp.*... 2,742 102,277 Millipore Corp.*........... 874 51,653 PerkinElmer, Inc. ......... 1,828 26,634 Thermo Fisher Scientific Inc.*................... 6,586 231,037 Waters Corp.*.............. 1,530 67,580 ------------ TOTAL LIFE SCIENCES TOOLS & SERVICES 479,181 ------------ MACHINERY 1.3% Caterpillar, Inc. ......... 9,472 337,014 Cummins, Inc. ............. 3,174 107,916 Danaher Corp. ............. 4,008 234,227 Deere & Co. ............... 6,656 274,626 Dover Corp. ............... 2,936 90,370 Eaton Corp. ............... 2,598 113,792 Flowserve Corp. ........... 884 60,024 Illinois Tool Works, Inc. ................... 6,050 198,440 Ingersoll-Rand Co., Ltd. -- Class A......... 5,022 109,329 Manitowoc Co., Inc. ....... 2,046 12,174 PACCAR, Inc. .............. 5,712 202,433 Pall Corp. ................ 1,858 49,070 Parker-Hannifin Corp. ..... 2,528 114,645 ------------ TOTAL MACHINERY 1,904,060 ------------ MEDIA 2.2% CBS Corp. -- Class B....... 10,694 75,286 Comcast Corp. -- Class A... 45,352 701,142 DIRECTV Group, Inc.(The)*.. 8,330 206,001 Gannett Co., Inc. ......... 3,596 14,060 Interpublic Group of Cos., Inc.*................... 7,500 46,950 McGraw-Hill Cos., Inc. .... 4,952 149,303 Meredith Corp. ............ 566 14,195 New York Times Co. -- Class A....................... 1,838 9,888 News Corp. -- Class A...... 36,202 299,029 Omnicom Group, Inc. ....... 4,892 153,951 Scripps Networks Interactive -- Class A.. 1,426 39,129 Time Warner Cable, Inc. ... 5,548 178,812 Time Warner, Inc. ......... 18,829 411,037 Viacom, Inc. -- Class B*... 9,552 183,781 Walt Disney Co.(The)....... 29,225 640,028 Washington Post Co. -- Class B.......... 94 39,347 ------------ TOTAL MEDIA 3,161,939 ------------ METALS & MINING 0.7% AK Steel Holding Corp. .... 1,748 22,742 Alcoa, Inc. ............... 14,965 135,733 Allegheny Technologies, Inc. ................... 1,540 50,404 Freeport-McMoRan Copper & Gold, Inc. ............. 6,482 276,457 Newmont Mining Corp. ...... 7,704 310,009 Nucor Corp. ............... 4,942 201,090 Titanium Metals Corp. ..... 1,336 9,071 United States Steel Corp. .................. 2,218 58,888 ------------ TOTAL METALS & MINING 1,064,394 ------------ MULTI-UTILITIES 1.2% Ameren Corp. .............. 3,348 77,071 CenterPoint Energy, Inc. .. 5,474 58,243 CMS Energy Corp. .......... 3,566 42,863 Consolidated Edison, Inc. ................... 4,306 159,882 Dominion Resources, Inc. .. 9,184 276,989 DTE Energy Co. ............ 2,568 75,936 Integrys Energy Group, Inc. ................... 1,202 31,745 NiSource, Inc. ............ 4,316 47,433 PG&E Corp. ................ 5,762 213,885 Public Service Enterprise Group, Inc. ............ 7,962 237,586 SCANA Corp. ............... 1,902 57,478 Sempra Energy.............. 3,830 176,257 TECO Energy, Inc. ......... 3,358 35,561 Wisconsin Energy Corp. .... 1,838 73,447 Xcel Energy, Inc. ......... 7,158 131,994 ------------ TOTAL MULTI-UTILITIES 1,696,370 ------------
See Notes to Financial Statements. 20 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------- COMMON STOCKS (CONTINUED) MULTILINE RETAIL 0.8% Big Lots, Inc.*............ 1,286 $35,545 Family Dollar Stores, Inc. ................... 2,200 73,018 J.C. Penney Co., Inc. ..... 3,502 107,476 Kohl's Corp.*.............. 4,798 217,589 Macy's, Inc. .............. 6,616 90,507 Nordstrom, Inc. ........... 2,508 56,756 Sears Holdings Corp.*...... 864 53,974 Target Corp. .............. 11,845 488,725 ------------ TOTAL MULTILINE RETAIL 1,123,590 ------------ OFFICE ELECTRONICS 0.1% Xerox Corp. ............... 13,619 83,212 ------------ TOTAL OFFICE ELECTRONICS 83,212 ------------ OIL, GAS & CONSUMABLE FUELS 8.8% Anadarko Petroleum Corp. .. 7,242 311,841 Apache Corp. .............. 5,270 383,972 Cabot Oil & Gas Corp. ..... 1,624 49,029 Chesapeake Energy Corp. ... 8,846 174,355 Chevron Corp. ............. 31,559 2,086,050 ConocoPhillips............. 23,299 955,259 CONSOL Energy, Inc. ....... 2,846 89,023 Denbury Resources, Inc.*... 3,914 63,720 Devon Energy Corp. ........ 6,994 362,639 El Paso Corp. ............. 11,001 75,907 EOG Resources, Inc. ....... 3,934 249,730 Exxon Mobil Corp. ......... 77,795 5,186,593 Hess Corp. ................ 4,460 244,363 Marathon Oil Corp. ........ 11,136 330,739 Massey Energy Co. ......... 1,346 21,415 Murphy Oil Corp. .......... 3,000 143,130 Noble Energy, Inc. ........ 2,722 154,473 Occidental Petroleum Corp. .................. 12,749 717,641 Peabody Energy Corp. ...... 4,212 111,155 Pioneer Natural Resources Co. .................... 1,818 42,032 Range Resources Corp. ..... 2,464 98,486 Southwestern Energy Co.*... 5,414 194,146 Spectra Energy Corp. ...... 10,128 146,856 Sunoco, Inc. .............. 1,838 48,725 Tesoro Corp. .............. 2,186 33,336 Valero Energy Corp. ....... 8,126 161,220 Williams Cos., Inc. ....... 9,114 128,507 XTO Energy, Inc. .......... 9,124 316,238 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 12,880,580 ------------ PAPER & FOREST PRODUCTS 0.2% International Paper Co. ... 6,730 85,202 MeadWestvaco Corp. ........ 2,692 42,157 Weyerhaeuser Co. .......... 3,328 117,345 ------------ TOTAL PAPER & FOREST PRODUCTS 244,704 ------------ PERSONAL PRODUCTS 0.1% Avon Products, Inc. ....... 6,710 152,720 Estee Lauder Cos., Inc -- Class A.......... 1,828 54,657 ------------ TOTAL PERSONAL PRODUCTS 207,377 ------------ PHARMACEUTICALS 5.9% Abbott Laboratories........ 24,327 1,018,085 Allergan, Inc. ............ 4,838 225,741 Bristol-Myers Squibb Co. .. 31,167 598,406 Eli Lilly & Co. ........... 15,913 523,856 Forest Laboratories, Inc.*................... 4,748 102,984 Johnson & Johnson, Inc. ... 43,544 2,279,964 King Pharmaceuticals, Inc.*................... 3,884 30,606 Merck & Co., Inc. ......... 33,179 804,259 Mylan Inc.*................ 4,798 63,574 Pfizer, Inc. .............. 106,185 1,418,632 Schering-Plough Corp. ..... 25,599 589,289 Watson Pharmaceuticals, Inc.*................... 1,644 50,865 Wyeth...................... 20,965 888,916 ------------ TOTAL PHARMACEUTICALS 8,595,177 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 0.8% Apartment Investment & Management Co. -- Class A....................... 1,848 13,490 AvalonBay Communities, Inc. ................... 1,262 71,694 Boston Properties, Inc. ... 1,912 94,491 Equity Residential......... 4,296 98,336 HCP, Inc. ................. 3,998 87,756 Health Care REIT, Inc. .... 1,738 59,214 Host Hotels & Resorts, Inc. ................... 9,308 71,579 Kimco Realty Corp. ........ 4,902 58,922 Plum Creek Timber Co., Inc. ................... 2,598 89,683 ProLogis................... 6,606 60,181 Public Storage, Inc. ...... 1,972 131,848 Simon Property Group, Inc. ................... 3,964 204,542 Ventas, Inc. .............. 2,464 70,569 Vornado Realty Trust....... 2,424 118,509 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,230,814 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 0.0%(A) CB Richard Ellis Group, Inc. -- Class A*........ 3,536 26,520 ------------ TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 26,520 ------------ ROAD & RAIL 0.7% Burlington Northern Santa Fe Corp. ............... 4,386 295,967 CSX Corp. ................. 6,288 186,062 Norfolk Southern Corp. .... 5,772 205,945 Ryder System, Inc. ........ 874 24,201 Union Pacific Corp. ....... 7,922 389,287 ------------ TOTAL ROAD & RAIL 1,101,462 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.0% Advanced Micro Devices, Inc.*................... 8,806 31,790 Altera Corp. .............. 4,614 75,254 Analog Devices, Inc. ...... 4,590 97,675 Applied Materials, Inc. ... 20,925 255,494 Broadcom Corp. -- Class A*...................... 6,696 155,280 Intel Corp. ............... 87,554 1,381,602 KLA-Tencor Corp. .......... 2,672 74,121 Linear Technology Corp. ... 3,492 76,056 LSI Corp.*................. 10,202 39,176 MEMC Electronic Materials, Inc.*................... 3,522 57,057 Microchip Technology, Inc. ................... 2,866 65,918 Micron Technology, Inc.*... 12,973 63,308 National Semiconductor Corp. .................. 3,070 37,976 Novellus Systems, Inc.*.... 1,530 27,632 NVIDIA Corp.*.............. 8,454 97,052 Teradyne, Inc.*............ 2,722 16,169 Texas Instruments, Inc. ... 20,101 363,024 Xilinx, Inc. .............. 4,316 88,219 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3,002,803 ------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------- COMMON STOCKS (CONTINUED) SOFTWARE 3.3% Adobe Systems, Inc.*....... 8,250 $225,637 Autodesk, Inc.*............ 3,556 70,907 BMC Software, Inc.*........ 2,906 100,751 CA, Inc. .................. 6,214 107,192 Citrix Systems, Inc.*...... 2,836 80,911 Compuware Corp.*........... 3,884 29,052 Electronic Arts, Inc.*..... 5,066 103,093 Intuit, Inc.*.............. 5,056 116,945 McAfee, Inc.*.............. 2,424 90,997 Microsoft Corp. ........... 120,365 2,438,595 Novell, Inc.*.............. 5,424 20,394 Oracle Corp. .............. 60,371 1,167,575 Salesforce.com, Inc.*...... 1,664 71,236 Symantec Corp.*............ 12,923 222,922 ------------ TOTAL SOFTWARE 4,846,207 ------------ SPECIALTY RETAIL 1.8% Abercrombie & Fitch Co. -- Class A.......... 1,376 37,235 AutoNation, Inc.*.......... 1,704 30,178 AutoZone, Inc.*............ 596 99,168 Bed Bath & Beyond, Inc.*... 4,088 124,357 Best Buy Co., Inc. ........ 5,340 204,949 GameStop Corp. -- Class A*...................... 2,578 77,753 Gap, Inc.(The)............. 7,336 114,001 Home Depot, Inc. .......... 26,697 702,665 Limited Brands, Inc. ...... 4,262 48,672 Lowe's Cos., Inc. ......... 23,071 496,027 O'Reilly Automotive, Inc.*................... 2,126 82,595 Office Depot, Inc.*........ 4,326 11,204 RadioShack Corp. .......... 1,972 27,766 Sherwin-Williams Co.(The).. 1,550 87,792 Staples, Inc. ............. 11,229 231,542 Tiffany & Co. ............. 1,942 56,201 TJX Cos., Inc. ............ 6,556 183,371 ------------ TOTAL SPECIALTY RETAIL 2,615,476 ------------ TEXTILES, APPAREL & LUXURY GOODS 0.4% Coach, Inc.*............... 5,056 123,872 NIKE, Inc. -- Class B...... 6,100 320,067 Polo Ralph Lauren Corp. ... 884 47,595 V.F. Corp. ................ 1,386 82,148 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 573,682 ------------ THRIFTS & MORTGAGE FINANCE 0.1% Hudson City Bancorp, Inc. ................... 8,220 103,243 People's United Financial, Inc. ................... 5,484 85,660 ------------ TOTAL THRIFTS & MORTGAGE FINANCE 188,903 ------------ TOBACCO 1.3% Altria Group, Inc. ........ 32,523 531,101 Lorillard, Inc. ........... 2,642 166,789 Philip Morris International, Inc. .... 31,549 1,142,074 Reynolds American, Inc. ... 2,662 101,103 ------------ TOTAL TOBACCO 1,941,067 ------------ TRADING COMPANIES & DISTRIBUTORS 0.1% Fastenal Co. .............. 2,036 78,101 W.W. Grainger, Inc. ....... 998 83,712 ------------ TOTAL TRADING COMPANIES & DISTRIBUTORS 161,813 ------------ WIRELESS TELECOMMUNICATION SERVICES 0.3% American Tower Corp. -- Class A*....... 6,248 198,437 Sprint Nextel Corp.*....... 45,098 196,627 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 395,064 ------------ TOTAL COMMON STOCKS (Cost $118,825,878) 119,416,616 ------------ FACE AMOUNT -------------------------------------------------------- REPURCHASE AGREEMENTS 6.0% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $8,806,022 on 05/01/09 collateralized by $8,640,000 FNMA at 4.750% due 03/12/10 with a value of $8,984,736... $8,806,000 8,806,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $8,806,000) 8,806,000 ------------ TOTAL INVESTMENTS 87.4% (Cost $127,631,878) 128,222,616 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--12.6% 18,555,829 ------------ NET ASSETS--100.0% $146,778,445 -------------------------------------------------------- UNREALIZED CONTRACTS GAIN -------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2009 S&P 500 Index E- Mini Futures Contracts (Aggregate Market Value of Contracts $127,977,000)........... 2,942 $18,519,551 ------------ UNITS -------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Goldman Sachs International May 2009 S&P 500 Index Swap, Terminating 05/07/09 (Notional Market Value $45,877,407)**.......... 52,563 $1,907,462 --------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P 500 Index +/- financing at a variable rate. (a) Amount represents less than 0.05% of net assets. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. REIT--Real Estate Investment Trust See Notes to Financial Statements. 22 RYDEX INVERSE 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE --------------------------------------------------------- REPURCHASE AGREEMENTS 73.0% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $71,173,178 on 05/01/09 collateralized by $69,815,000 FNMA at 4.750% due 03/12/10 with a value of $72,600,619.. $71,173,000 $71,173,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $71,173,000) 71,173,000 ------------ TOTAL INVESTMENTS 73.0% (Cost $71,173,000) 71,173,000 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--27.0% 26,380,695 ------------ NET ASSETS--100.0% $97,553,695 --------------------------------------------------------- UNREALIZED CONTRACTS LOSS --------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2009 S&P 500 Index E- Mini Futures Contracts (Aggregate Market Value of Contracts $36,279,000)............ 834 $(3,459,275) ------------ UNITS --------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Goldman Sachs International May 2009 S&P 500 Index Swap, Terminating 05/07/09 (Notional Market Value $158,256,024)*.... 181,318 $(7,472,482) ---------------------------------------------------------
* Price return based on S&P 500 Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 RYDEX 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 83.9% AEROSPACE & DEFENSE 0.4% Alliant Techsystems, Inc.*.. 410 $32,657 BE Aerospace, Inc.*......... 1,270 13,703 ----------- TOTAL AEROSPACE & DEFENSE 46,360 ----------- AIRLINES 0.3% Airtran Holdings, Inc.*..... 1,500 10,425 Alaska Air Group, Inc.*..... 460 7,719 JetBlue Airways Corp.*...... 2,310 11,388 ----------- TOTAL AIRLINES 29,532 ----------- AUTO COMPONENTS 0.6% BorgWarner, Inc. ........... 1,450 41,978 Gentex Corp. ............... 1,730 23,130 ----------- TOTAL AUTO COMPONENTS 65,108 ----------- AUTOMOBILES 0.1% Thor Industries, Inc. ...... 450 10,346 ----------- TOTAL AUTOMOBILES 10,346 ----------- BEVERAGES 0.5% Hansen Natural Corp.*....... 910 37,092 PepsiAmericas, Inc. ........ 720 17,690 ----------- TOTAL BEVERAGES 54,782 ----------- BIOTECHNOLOGY 1.1% OSI Pharmaceuticals, Inc.*.. 730 24,506 United Therapeutics Corp.*.. 290 18,215 Vertex Pharmaceuticals, Inc.*.................... 2,170 66,879 ----------- TOTAL BIOTECHNOLOGY 109,600 ----------- BUILDING PRODUCTS 0.2% Lennox International, Inc. .................... 590 18,815 ----------- TOTAL BUILDING PRODUCTS 18,815 ----------- CAPITAL MARKETS 1.7% Affiliated Managers Group, Inc.*.................... 520 29,562 Apollo Investment Corp. .... 1,790 8,592 Eaton Vance Corp. .......... 1,470 40,234 Jefferies Group, Inc. ...... 1,540 30,138 Raymond James Financial, Inc. .................... 1,230 19,299 SEI Investments Co. ........ 1,680 23,570 Waddell & Reed Financial, Inc. -- Class A.......... 1,070 23,978 ----------- TOTAL CAPITAL MARKETS 175,373 ----------- CHEMICALS 3.2% Airgas, Inc. ............... 1,020 43,982 Albemarle Corp. ............ 1,150 30,843 Ashland, Inc. .............. 830 18,227 Cabot Corp. ................ 820 11,972 Cytec Industries, Inc. ..... 590 11,717 FMC Corp. .................. 910 44,344 Lubrizol Corp. ............. 850 36,737 Minerals Technologies, Inc. .................... 230 8,554 Olin Corp. ................. 970 12,222 RPM International, Inc. .... 1,610 22,250 Scotts Miracle-Gro Co.(The) -- Class A...... 550 18,574 Sensient Technologies Corp. ................... 610 14,262 Terra Industries, Inc. ..... 1,250 33,125 Valspar Corp. .............. 1,260 30,240 ----------- TOTAL CHEMICALS 337,049 ----------- COMMERCIAL BANKS 3.1% Associated Banc-Corp. ...... 1,610 24,907 Bancorpsouth, Inc. ......... 910 21,158 Bank of Hawaii Corp. ....... 600 21,084 Cathay General Bancorp...... 620 6,956 City National Corp. ........ 510 18,666 Colonial BancGroup, Inc. ... 2,540 1,930 Commerce Bancshares Inc/Kansas City MO....... 830 27,473 Cullen/Frost Bankers, Inc. .................... 750 35,317 FirstMerit Corp. ........... 1,020 19,798 Fulton Financial Corp. ..... 2,200 14,542 International Bancshares Corp. ................... 640 8,646 PacWest Bancorp............. 310 4,517 SVB Financial Group*........ 410 8,512 Synovus Financial Corp. .... 3,530 11,402 TCF Financial Corp. ........ 1,410 19,613 Trustmark Corp. ............ 610 13,261 Valley National Bancorp..... 1,700 24,599 Webster Financial Corp. .... 660 3,452 Westamerica Bancorp......... 360 19,307 Wilmington Trust Corp. ..... 870 12,624 ----------- TOTAL COMMERCIAL BANKS 317,764 ----------- COMMERCIAL SERVICES & SUPPLIES 2.7% Brink's Co.(The)............ 510 14,459 Clean Harbors, Inc.*........ 250 12,525 Copart, Inc.*............... 790 24,798 Corporate Executive Board Co.(The)................. 430 7,430 Corrections Corp. of America*................. 1,510 21,336 Deluxe Corp. ............... 640 9,280 FTI Consulting, Inc.*....... 640 35,123 Herman Miller, Inc. ........ 670 9,963 HNI Corp. .................. 560 8,680 Kelly Services, Inc. -- Class A.......... 340 3,862 Korn/Ferry International*... 560 5,930 Manpower, Inc. ............. 980 42,228 Mine Safety Appliances Co. ..................... 370 9,121 MPS Group, Inc.*............ 1,140 9,166 Navigant Consulting, Inc.*.. 590 8,679 Rollins, Inc. .............. 520 9,360 Waste Connections, Inc.*.... 1,000 25,780 Watson Wyatt Worldwide, Inc. -- Class A.......... 530 28,117 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 285,837 ----------- COMMUNICATIONS EQUIPMENT 1.4% 3Com Corp.*................. 4,860 19,683 ADC Telecommunications, Inc.*.................... 1,210 8,906 Adtran, Inc. ............... 690 14,593 Avocent Corp.*.............. 570 8,231 CommScope, Inc.*............ 910 22,841 F5 Networks, Inc.*.......... 1,000 27,270 Palm, Inc.*................. 1,680 17,623 Plantronics, Inc. .......... 610 7,771 Polycom, Inc.*.............. 1,050 19,572 ----------- TOTAL COMMUNICATIONS EQUIPMENT 146,490 ----------- COMPUTERS & PERIPHERALS 1.1% Diebold, Inc. .............. 830 21,937 Imation Corp. .............. 380 3,800 NCR Corp.*.................. 1,990 20,198 Western Digital Corp.*...... 2,790 65,621 ----------- TOTAL COMPUTERS & PERIPHERALS 111,556 -----------
See Notes to Financial Statements. 24 RYDEX 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) CONSTRUCTION & ENGINEERING 2.1% Aecom Technology Corp.*..... 1,140 $29,332 Dycom Industries, Inc.*..... 500 4,210 Granite Construction, Inc. .................... 410 16,175 KBR, Inc. .................. 2,030 31,709 Quanta Services, Inc.*...... 2,450 55,688 Shaw Group, Inc.(The)*...... 1,050 35,206 URS Corp.*.................. 1,070 47,144 ----------- TOTAL CONSTRUCTION & ENGINEERING 219,464 ----------- CONSTRUCTION MATERIALS 0.4% Martin Marietta Materials, Inc. .................... 520 43,696 ----------- TOTAL CONSTRUCTION MATERIALS 43,696 ----------- CONSUMER FINANCE 0.2% AmeriCredit Corp.*.......... 1,650 16,781 ----------- TOTAL CONSUMER FINANCE 16,781 ----------- CONTAINERS & PACKAGING 1.1% AptarGroup, Inc. ........... 850 26,376 Greif, Inc. -- Class A...... 430 19,466 Packaging Corp. of America.. 1,290 20,472 Sonoco Products Co. ........ 1,250 30,512 Temple-Inland, Inc. ........ 1,340 16,000 ----------- TOTAL CONTAINERS & PACKAGING 112,826 ----------- DISTRIBUTORS 0.3% LKQ Corp.*.................. 1,760 29,885 ----------- TOTAL DISTRIBUTORS 29,885 ----------- DIVERSIFIED CONSUMER SERVICES 2.0% Brink's Home Security Holdings, Inc.*.......... 510 13,556 Career Education Corp.*..... 920 20,277 Corinthian Colleges, Inc.*.. 1,080 16,632 DeVry, Inc. ................ 770 32,771 ITT Educational Services, Inc.*.................... 390 39,300 Matthews International Corp. -- Class A......... 390 12,215 Regis Corp. ................ 540 10,336 Service Corp. International............ 3,210 14,541 Sotheby's................... 840 9,752 Strayer Education, Inc. .... 180 34,094 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 203,474 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.1% Cincinnati Bell, Inc.*...... 2,860 7,979 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 7,979 ----------- ELECTRIC UTILITIES 1.5% Cleco Corp. ................ 760 16,028 DPL, Inc. .................. 1,460 32,748 Great Plains Energy, Inc. .. 1,500 21,705 Hawaiian Electric Industries, Inc. ........ 1,140 17,716 IDACORP, Inc. .............. 590 14,142 NV Energy, Inc. ............ 2,940 30,135 Westar Energy, Inc. ........ 1,360 23,841 ----------- TOTAL ELECTRIC UTILITIES 156,315 ----------- ELECTRICAL EQUIPMENT 1.5% AMETEK, Inc. ............... 1,340 43,162 Hubbell, Inc. -- Class B.... 710 23,572 Roper Industries, Inc. ..... 1,130 51,517 Thomas & Betts Corp.*....... 670 20,850 Woodward Governor Co. ...... 690 13,772 ----------- TOTAL ELECTRICAL EQUIPMENT 152,873 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.0% Arrow Electronics, Inc.*.... 1,500 34,110 Avnet, Inc.*................ 1,880 41,153 Ingram Micro, Inc. -- Class A*....................... 2,030 29,475 Itron, Inc.*................ 460 21,160 National Instruments Corp. ................... 700 15,428 Tech Data Corp.*............ 630 18,138 Trimble Navigation, Ltd.*... 1,500 32,160 Vishay Intertechnology, Inc.*.................... 2,340 13,736 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 205,360 ----------- ENERGY EQUIPMENT & SERVICES 2.8% Exterran Holdings, Inc.*.... 770 15,901 FMC Technologies, Inc.*..... 1,580 54,083 Helix Energy Solutions Group, Inc.*............. 1,240 11,272 Helmerich & Payne, Inc. .... 1,320 40,682 Oceaneering International, Inc.*.................... 690 31,443 Patterson-UTI Energy, Inc. .................... 1,920 24,403 Pride International, Inc.*.. 2,180 49,486 Superior Energy Services, Inc.*.................... 980 18,826 Tidewater, Inc. ............ 650 28,113 Unit Corp.*................. 590 16,101 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 290,310 ----------- FOOD & STAPLES RETAILING 0.3% BJ's Wholesale Club, Inc.*.. 690 23,005 Ruddick Corp. .............. 490 12,573 ----------- TOTAL FOOD & STAPLES RETAILING 35,578 ----------- FOOD PRODUCTS 1.1% Corn Products International, Inc. .................... 940 22,466 Flowers Foods, Inc. ........ 990 22,869 Lancaster Colony Corp. ..... 250 10,950 Ralcorp Holdings, Inc.*..... 710 40,584 Smithfield Foods, Inc.*..... 1,490 12,874 Tootsie Roll Industries, Inc. .................... 330 8,035 ----------- TOTAL FOOD PRODUCTS 117,778 ----------- GAS UTILITIES 1.7% AGL Resources, Inc. ........ 970 30,235 Energen Corp. .............. 900 32,508 National Fuel Gas Co. ...... 1,000 32,710 Oneok, Inc. ................ 1,320 34,545 UGI Corp. .................. 1,360 31,198 WGL Holdings, Inc. ......... 630 19,618 ----------- TOTAL GAS UTILITIES 180,814 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 3.4% Beckman Coulter, Inc. ...... 790 41,522 Edwards Lifesciences Corp.*................... 700 44,366 Gen-Probe, Inc.*............ 660 31,786 Hill-Rom Holdings, Inc. .... 790 10,254 Hologic, Inc.*.............. 3,220 47,849 Idexx Laboratories, Inc.*... 740 29,082 Immucor, Inc.*.............. 880 14,335 Kinetic Concepts, Inc.*..... 690 17,084 Masimo Corp.*............... 610 17,629 ResMed, Inc.*............... 950 36,528 STERIS Corp. ............... 730 17,593
See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RYDEX 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Teleflex, Inc. ............. 500 $21,490 Thoratec Corp.*............. 710 20,633 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 350,151 ----------- HEALTH CARE PROVIDERS & SERVICES 2.7% Community Health Systems, Inc.*.................... 1,150 26,266 Health Management Associates, Inc. -- Class A*....................... 3,100 14,477 Health Net, Inc.*........... 1,300 18,772 Henry Schein, Inc.*......... 1,120 45,965 Kindred Healthcare, Inc.*... 380 4,948 LifePoint Hospitals, Inc.*.. 650 16,802 Lincare Holdings, Inc.*..... 930 22,441 Omnicare, Inc. ............. 1,310 33,680 Owens & Minor, Inc. ........ 520 18,034 Psychiatric Solutions, Inc.*.................... 700 13,573 Universal Health Services, Inc. -- Class B.......... 620 31,248 VCA Antech, Inc.*........... 1,060 26,521 WellCare Health Plans, Inc.*.................... 530 7,955 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 280,682 ----------- HEALTH CARE TECHNOLOGY 0.4% Cerner Corp.*............... 850 45,730 ----------- TOTAL HEALTH CARE TECHNOLOGY 45,730 ----------- HOTELS, RESTAURANTS & LEISURE 1.6% Bob Evans Farms, Inc. ...... 390 9,457 Boyd Gaming Corp. .......... 710 6,525 Brinker International, Inc. .................... 1,280 22,682 Cheesecake Factory, Inc.(The)*............... 750 13,027 Chipotle Mexican Grill, Inc. -- Class A*......... 410 33,247 International Speedway Corp. -- Class A......... 350 8,288 Life Time Fitness, Inc.*.... 440 8,254 Panera Bread Co. -- Class A*....................... 390 21,844 Scientific Games Corp. -- Class A*........ 820 14,342 Wendy's/Arby's Group, Inc.- Class A.................. 5,250 26,250 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 163,916 ----------- HOUSEHOLD DURABLES 1.5% American Greetings Corp. -- Class A......... 570 4,474 Blyth, Inc. ................ 80 3,526 MDC Holdings, Inc. ......... 460 15,723 Mohawk Industries, Inc.*.... 700 33,117 NVR, Inc.*.................. 70 35,376 Ryland Group, Inc. ......... 540 11,183 Toll Brothers, Inc.*........ 1,630 33,024 Tupperware Brands Corp. .... 790 19,774 ----------- TOTAL HOUSEHOLD DURABLES 156,197 ----------- HOUSEHOLD PRODUCTS 0.9% Church & Dwight Co., Inc. .. 880 47,881 Energizer Holdings, Inc.*... 730 41,829 ----------- TOTAL HOUSEHOLD PRODUCTS 89,710 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.1% Black Hills Corp. .......... 490 9,741 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 9,741 ----------- INDUSTRIAL CONGLOMERATES 0.2% Carlisle Cos., Inc. ........ 770 17,517 ----------- TOTAL INDUSTRIAL CONGLOMERATES 17,517 ----------- INSURANCE 4.0% American Financial Group, Inc. .................... 940 16,525 Arthur J. Gallagher & Co. .. 1,210 27,201 Brown & Brown, Inc. ........ 1,460 28,412 Everest Re Group, Ltd. ..... 770 57,473 Fidelity National Financial, Inc. -- Class A.......... 2,900 52,577 First American Corp. ....... 1,170 32,854 Hanover Insurance Group, Inc.(The)................ 640 19,187 HCC Insurance Holdings, Inc. .................... 1,430 34,206 Horace Mann Educators Corp. ................... 490 4,302 Mercury General Corp. ...... 450 15,201 Old Republic International Corp. ................... 2,950 27,641 Protective Life Corp. ...... 880 7,542 Reinsurance Group of America, Inc. ........... 910 28,929 StanCorp Financial Group, Inc. .................... 610 16,732 Unitrin, Inc. .............. 620 10,540 W.R. Berkley Corp. ......... 1,740 41,603 ----------- TOTAL INSURANCE 420,925 ----------- INTERNET & CATALOG RETAIL 0.7% NetFlix, Inc.*.............. 520 23,561 Priceline.com, Inc.*........ 510 49,516 ----------- TOTAL INTERNET & CATALOG RETAIL 73,077 ----------- INTERNET SOFTWARE & SERVICES 0.3% Digital River, Inc.*........ 460 17,673 ValueClick, Inc.*........... 1,090 11,554 ----------- TOTAL INTERNET SOFTWARE & SERVICES 29,227 ----------- IT SERVICES 2.9% Acxiom Corp. ............... 860 8,299 Alliance Data Systems Corp.*................... 750 31,402 Broadridge Financial Solutions, Inc. ......... 1,760 34,056 DST Systems, Inc.*.......... 510 18,447 Gartner, Inc.*.............. 740 9,997 Global Payments, Inc. ...... 1,010 32,381 Hewitt Associates, Inc.- Class A*................. 1,050 32,928 Lender Processing Services, Inc. .................... 1,050 30,093 Mantech International Corp. -- Class A*........ 260 9,409 Metavante Technologies, Inc.*.................... 1,130 26,657 NeuStar, Inc. -- Class A*... 930 17,679 SAIC, Inc.*................. 2,550 46,155 SRA International, Inc. -- Class A*......... 530 8,157 ----------- TOTAL IT SERVICES 305,660 ----------- LEISURE EQUIPMENT & PRODUCTS 0.1% Callaway Golf Co. .......... 810 6,116 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 6,116 ----------- LIFE SCIENCES TOOLS & SERVICES 1.6% Affymetrix, Inc.*........... 890 4,174 Bio-Rad Laboratories, Inc. -- Class A*......... 240 16,726 Charles River Laboratories International, Inc.*..... 840 23,226 Covance, Inc.*.............. 800 31,424 Mettler Toledo International, Inc.*..... 420 25,885 Pharmaceutical Product Development, Inc. ....... 1,480 29,023 Techne Corp. ............... 470 26,893 Varian, Inc.*............... 360 11,887 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 169,238 ----------- MACHINERY 3.9% AGCO Corp.*................. 1,150 27,945 Bucyrus International, Inc. -- Class A.......... 940 20,407
See Notes to Financial Statements. 26 RYDEX 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Crane Co. .................. 590 $13,623 Donaldson Co., Inc. ........ 970 32,000 Federal Signal Corp. ....... 590 4,584 Graco, Inc. ................ 750 17,693 Harsco Corp. ............... 1,010 27,825 IDEX Corp. ................. 1,010 25,503 Joy Global, Inc. ........... 1,280 32,640 Kennametal, Inc. ........... 920 18,814 Lincoln Electric Holdings, Inc. .................... 530 23,601 Nordson Corp. .............. 420 15,238 Oshkosh Corp. .............. 930 8,928 Pentair, Inc. .............. 1,230 32,767 SPX Corp. .................. 620 28,625 Terex Corp.*................ 1,190 16,422 Timken Co. ................. 1,070 17,206 Trinity Industries, Inc. ... 1,000 14,610 Wabtec Corp. ............... 600 22,884 ----------- TOTAL MACHINERY 401,315 ----------- MARINE 0.1% Alexander & Baldwin, Inc. .. 520 13,853 ----------- TOTAL MARINE 13,853 ----------- MEDIA 0.8% DreamWorks Animation SKG, Inc. -- Class A*......... 960 23,050 Harte-Hanks, Inc. .......... 480 3,965 John Wiley & Sons, Inc. -- Class A.......... 530 17,967 Lamar Advertising Co. -- Class A*.......... 950 16,055 Marvel Entertainment, Inc.*.................... 610 18,202 Scholastic Corp. ........... 330 6,511 ----------- TOTAL MEDIA 85,750 ----------- METALS & MINING 1.2% Carpenter Technology Corp. ................... 550 11,369 Cliffs Natural Resources, Inc. .................... 1,430 32,976 Commercial Metals Co. ...... 1,410 20,981 Reliance Steel & Aluminum Co. ..................... 800 28,184 Steel Dynamics, Inc. ....... 2,030 25,273 Worthington Industries, Inc. .................... 750 11,175 ----------- TOTAL METALS & MINING 129,958 ----------- MULTI-UTILITIES 1.7% Alliant Energy Corp. ....... 1,390 31,080 MDU Resources Group, Inc. .. 2,310 40,587 NSTAR....................... 1,340 42,090 OGE Energy Corp. ........... 1,190 30,595 PNM Resources, Inc. ........ 1,090 9,287 Vectren Corp. .............. 1,020 22,613 ----------- TOTAL MULTI-UTILITIES 176,252 ----------- MULTILINE RETAIL 0.6% 99 Cents Only Stores*....... 590 6,337 Dollar Tree, Inc.*.......... 1,140 48,267 Saks, Inc.*................. 1,780 9,274 ----------- TOTAL MULTILINE RETAIL 63,878 ----------- OFFICE ELECTRONICS 0.2% Zebra Technologies Corp. -- Class A*........ 760 16,150 ----------- TOTAL OFFICE ELECTRONICS 16,150 ----------- OIL, GAS & CONSUMABLE FUELS 2.7% Arch Coal, Inc. ............ 1,790 25,006 Bill Barrett Corp.*......... 460 11,951 Cimarex Energy Co. ......... 1,050 28,245 Comstock Resources, Inc.*... 580 19,987 Encore Acquisition Co.*..... 650 18,973 Forest Oil Corp.*........... 1,220 19,520 Frontier Oil Corp. ......... 1,300 16,523 Mariner Energy, Inc.*....... 1,130 12,859 Newfield Exploration Co.*... 1,670 52,071 Overseas Shipholding Group, Inc. .................... 300 8,613 Patriot Coal Corp.*......... 800 5,040 Plains Exploration & Production Co.*.......... 1,500 28,305 Quicksilver Resources, Inc.*.................... 1,420 11,545 Southern Union Co. ......... 1,560 24,820 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 283,458 ----------- PAPER & FOREST PRODUCTS 0.0%(A) Louisiana-Pacific Corp. .... 1,150 4,681 ----------- TOTAL PAPER & FOREST PRODUCTS 4,681 ----------- PERSONAL PRODUCTS 0.4% Alberto-Culver Co. ......... 1,070 23,850 NBTY, Inc.*................. 690 17,878 ----------- TOTAL PERSONAL PRODUCTS 41,728 ----------- PHARMACEUTICALS 0.9% Endo Pharmaceuticals Holdings, Inc.*.......... 1,470 24,314 Medicis Pharmaceutical Corp. -- Class A......... 710 11,410 Perrigo Co. ................ 970 25,142 Sepracor, Inc.*............. 1,370 19,467 Valeant Pharmaceuticals International*........... 1,030 17,263 ----------- TOTAL PHARMACEUTICALS 97,596 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 5.1% Alexandria Real Estate Equities, Inc. .......... 490 17,875 AMB Property Corp. ......... 1,750 33,407 BRE Properties, Inc. ....... 640 15,725 Camden Property Trust....... 670 18,177 Corporate Office Properties Trust.................... 650 19,864 Cousins Properties, Inc. ... 550 4,648 Duke Realty Corp. .......... 2,690 26,281 Equity One, Inc. ........... 450 6,696 Essex Property Trust, Inc. .................... 340 21,587 Federal Realty Investment Trust.................... 740 40,848 Highwoods Properties, Inc. .................... 800 19,192 Hospitality Properties Trust.................... 1,180 14,443 Liberty Property Trust...... 1,270 30,912 Macerich Co.(The)........... 970 17,004 Mack-Cali Realty Corp. ..... 830 22,294 Nationwide Health Properties, Inc. ........ 1,290 31,850 Omega Healthcare Investors, Inc. .................... 1,030 16,192 Potlatch Corp. ............. 500 14,705 Rayonier, Inc. ............. 990 38,234 Realty Income Corp. ........ 1,310 29,252 Regency Centers Corp. ...... 990 37,075 SL Green Realty Corp. ...... 720 12,715 UDR, Inc. .................. 1,870 18,831 Weingarten Realty Investors................ 1,290 20,047 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 527,854 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1% Jones Lang LaSalle, Inc. ... 430 13,876 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 13,876 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 RYDEX 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) ROAD & RAIL 0.9% Con-way, Inc. .............. 580 $14,372 J.B. Hunt Transport Services, Inc. .......... 1,030 28,964 Kansas City Southern*....... 1,150 17,538 Landstar System, Inc. ...... 650 23,146 Werner Enterprises, Inc. ... 540 8,829 YRC Worldwide, Inc.*........ 740 2,242 ----------- TOTAL ROAD & RAIL 95,091 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.8% Atmel Corp.*................ 5,640 21,658 Cree, Inc.*................. 1,110 30,403 Fairchild Semiconductor International, Inc.*..... 1,550 9,548 Integrated Device Technology, Inc.*........ 2,070 11,240 International Rectifier Corp.*................... 910 15,361 Intersil Corp. -- Class A... 1,530 17,748 Lam Research Corp.*......... 1,580 44,050 RF Micro Devices, Inc.*..... 3,310 6,984 Semtech Corp.*.............. 760 10,959 Silicon Laboratories, Inc.*.................... 560 18,626 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 186,577 ----------- SOFTWARE 2.4% ACI Worldwide, Inc.*........ 440 7,599 Advent Software, Inc.*...... 200 6,648 Ansys, Inc.*................ 1,120 30,934 Cadence Design Systems, Inc.*.................... 3,320 18,526 Factset Research Systems, Inc. .................... 530 28,403 Fair Isaac Corp. ........... 610 10,260 Jack Henry & Associates, Inc. .................... 1,050 18,921 Macrovision Solutions Corp.*................... 1,030 20,827 Mentor Graphics Corp.*...... 1,160 7,795 Parametric Technology Corp.*................... 1,450 16,167 Sybase, Inc.*............... 1,030 34,979 Synopsys, Inc.*............. 1,800 39,204 Wind River Systems, Inc.*... 850 6,230 ----------- TOTAL SOFTWARE 246,493 ----------- SPECIALTY RETAIL 4.2% Advance Auto Parts, Inc. ... 1,190 52,062 Aeropostale, Inc.*.......... 840 28,535 American Eagle Outfitters, Inc. .................... 2,590 38,384 AnnTaylor Stores Corp.*..... 720 5,321 Barnes & Noble, Inc. ....... 470 12,276 CarMax, Inc.*............... 2,770 35,345 Chico's FAS, Inc.*.......... 2,230 17,037 Coldwater Creek, Inc.*...... 600 2,070 Collective Brands, Inc.*.... 800 11,616 Dick's Sporting Goods, Inc.*.................... 1,070 20,330 Foot Locker, Inc. .......... 1,950 23,185 Guess?, Inc. ............... 760 19,790 J. Crew Group, Inc.*........ 650 11,187 PetSmart, Inc. ............. 1,600 36,608 Rent-A-Center, Inc.*........ 830 15,978 Ross Stores, Inc. .......... 1,620 61,463 Urban Outfitters, Inc.*..... 1,430 27,871 Williams-Sonoma, Inc. ...... 1,090 15,260 ----------- TOTAL SPECIALTY RETAIL 434,318 ----------- TEXTILES, APPAREL & LUXURY GOODS 0.7% Hanesbrands, Inc.*.......... 1,170 19,258 Phillips-Van Heusen Corp. .. 650 18,870 Timberland Co. -- Class A*.. 580 9,419 Under Armour, Inc. -- Class A*....................... 460 10,828 Warnaco Group, Inc.*........ 590 17,016 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 75,391 ----------- THRIFTS & MORTGAGE FINANCE 1.1% Astoria Financial Corp. .... 1,020 8,425 First Niagara Financial Group, Inc. ............. 1,830 24,778 New York Community Bancorp, Inc. .................... 4,330 48,972 NewAlliance Bancshares, Inc. .................... 1,340 17,300 Washington Federal, Inc. ... 1,110 14,408 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 113,883 ----------- TOBACCO 0.1% Universal Corp. ............ 310 9,350 ----------- TOTAL TOBACCO 9,350 ----------- TRADING COMPANIES & DISTRIBUTORS 0.4% GATX Corp. ................. 610 18,367 MSC Industrial Direct Co. -- Class A........... 560 22,876 United Rentals, Inc.*....... 750 4,545 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 45,788 ----------- WATER UTILITIES 0.3% Aqua America, Inc. ......... 1,700 31,195 ----------- TOTAL WATER UTILITIES 31,195 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.4% Syniverse Holdings, Inc.*... 650 8,190 Telephone & Data Systems, Inc. .................... 1,270 36,411 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 44,601 ----------- TOTAL COMMON STOCKS (Cost $7,263,696) 8,738,668 ----------- FACE AMOUNT ------------------------------------------------------- REPURCHASE AGREEMENTS 4.3% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $453,001 on 05/01/09 collateralized by $445,000 FNMA at 4.750% due 03/12/10 with a value of $462,756.............. $453,000 453,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $453,000) 453,000 ----------- TOTAL INVESTMENTS 88.2% (Cost $7,716,696) 9,191,668 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES -- 11.8% 1,229,916 ----------- NET ASSETS--100.0% $10,421,584 ------------------------------------------------------- UNREALIZED CONTRACTS GAIN ------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2009 S&P MidCap 400 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $4,704,000).............. 84 $729,509 -----------
See Notes to Financial Statements. 28 RYDEX 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
UNREALIZED UNITS GAIN ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston June 2009 S&P MidCap 400 Index Swap, Terminating 06/26/09 (Notional Market Value $5,137,304)**...... 9,155 $544,377 Goldman Sachs International May 2009 S&P MidCap 400 Index Swap, Terminating 05/07/09 (Notional Market Value $2,291,791)**...... 4,084 116,887 ----------- (TOTAL NOTIONAL MARKET VALUE $7,429,095) $661,264 -------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P MidCap 400 Index +/- financing at a variable rate. (a) Amount represents less than 0.05% of net assets. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. REIT--Real Estate Investment Trust See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 RYDEX INVERSE 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------- REPURCHASE AGREEMENTS 78.7% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $6,893,017 on 05/01/09 collateralized by $6,895,000 FHLMC at 2.875% due 04/30/10 with a value of $7,032,900... $6,893,000 $6,893,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $6,893,000) 6,893,000 ----------- TOTAL INVESTMENTS 78.7% (Cost $6,893,000) 6,893,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--21.3% 1,860,831 ----------- NET ASSETS--100.0% $8,753,831 ------------------------------------------------------- UNREALIZED CONTRACTS LOSS ------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2009 S&P MidCap 400 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $2,464,000)... 44 $(93,549) ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston June 2009 S&P MidCap 400 Index Swap, Terminating 06/26/09 (Notional Market Value $2,716,310)*............ 4,841 (1,056,682) Goldman Sachs International May 2009 S&P MidCap 400 Index Swap, Terminating 05/07/09 (Notional Market Value $12,311,659)*........... 21,940 (1,181,107) ----------- (TOTAL NOTIONAL MARKET VALUE $15,027,969) $(2,237,789) -------------------------------------------------------
* Price return based on S&P MidCap 400 Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. 30 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS 81.9% AEROSPACE & DEFENSE 1.5% AAR Corp.*.................. 920 $13,864 Aerovironment, Inc.*........ 260 6,152 American Science & Engineering, Inc. ....... 210 12,655 Applied Signal Technology, Inc. .................... 300 5,928 Argon ST, Inc.*............. 310 6,321 Ascent Solar Technologies, Inc.*.................... 180 814 Axsys Technologies, Inc.*... 220 9,220 Ceradyne, Inc.*............. 620 10,689 Cubic Corp. ................ 370 10,623 Curtiss-Wright Corp. ....... 1,060 33,888 Ducommun, Inc. ............. 250 4,330 DynCorp International, Inc. -- Class A*......... 590 8,997 Esterline Technologies Corp.*................... 700 18,445 GenCorp, Inc.*.............. 1,350 3,240 HEICO Corp. ................ 520 14,929 Herley Industries, Inc.*.... 320 3,309 Hexcel Corp.*............... 2,270 21,769 Ladish Co., Inc.*........... 380 2,877 LMI Aerospace, Inc.*........ 210 1,384 Moog, Inc. -- Class A*...... 1,010 27,048 Orbital Sciences Corp.*..... 1,390 21,489 Stanley, Inc.*.............. 210 5,414 Taser International, Inc.*.. 1,480 7,104 Teledyne Technologies, Inc.*.................... 840 26,821 TransDigm Group, Inc.*...... 790 27,760 Triumph Group, Inc. ........ 390 16,119 ----------- TOTAL AEROSPACE & DEFENSE 321,189 ----------- AIR FREIGHT & LOGISTICS 0.2% Atlas Air Worldwide Holdings, Inc.*.......... 310 8,230 Dynamex, Inc.*.............. 210 3,089 Forward Air Corp. .......... 680 11,336 HUB Group, Inc. -- Class A*....................... 870 20,010 Pacer International, Inc. .. 820 3,477 Park-Ohio Holdings Corp.*... 190 884 ----------- TOTAL AIR FREIGHT & LOGISTICS 47,026 ----------- AIRLINES 0.6% Airtran Holdings, Inc.*..... 2,769 19,245 Alaska Air Group, Inc.*..... 850 14,263 Allegiant Travel Co.*....... 320 16,653 Hawaiian Holdings, Inc.*.... 1,020 5,090 JetBlue Airways Corp.*...... 4,099 20,208 Republic Airways Holdings, Inc.*.................... 830 5,943 SkyWest, Inc. .............. 1,380 16,615 UAL Corp.*.................. 3,409 16,772 US Airways Group, Inc.*..... 2,699 10,229 ----------- TOTAL AIRLINES 125,018 ----------- AUTO COMPONENTS 0.4% American Axle & Manufacturing Holdings, Inc. .................... 1,090 1,090 Amerigon, Inc.*............. 520 2,938 ArvinMeritor, Inc. ......... 1,740 2,158 Cooper Tire & Rubber Co. ... 1,390 11,495 Dana Holding Corp.*......... 2,340 1,849 Dorman Products, Inc.*...... 260 2,782 Drew Industries, Inc.*...... 470 6,712 Exide Technologies*......... 1,780 9,665 Fuel Systems Solutions, Inc.*.................... 290 4,428 Hayes Lemmerz International, Inc.*.................... 2,390 404 Lear Corp.*................. 1,520 1,216 Modine Manufacturing Co. ... 760 2,903 Quantum Fuel Systems Technologies Worldwide, Inc.*.................... 2,060 1,483 Raser Technologies, Inc.*... 1,220 4,770 Spartan Motors, Inc. ....... 770 6,214 Stoneridge, Inc.*........... 350 809 Superior Industries International, Inc. ..... 550 8,294 Tenneco, Inc.*.............. 1,100 3,366 Wonder Auto Technolgy, Inc.*.................... 350 2,355 ----------- TOTAL AUTO COMPONENTS 74,931 ----------- AUTOMOBILES 0.0%(A) Winnebago Industries, Inc. .................... 690 6,079 ----------- TOTAL AUTOMOBILES 6,079 ----------- BEVERAGES 0.1% Boston Beer Co., Inc. -- Class A*......... 200 5,320 Coca-Cola Bottling Co. Consolidated............. 100 5,212 National Beverage Corp.*.... 250 2,633 ----------- TOTAL BEVERAGES 13,165 ----------- BIOTECHNOLOGY 3.8% Acadia Pharmaceuticals, Inc.*.................... 780 772 Acorda Therapeutics, Inc.*.. 880 17,450 Affymax, Inc.*.............. 310 5,499 Alexion Pharmaceuticals, Inc.*.................... 1,930 64,501 Alkermes, Inc.*............. 2,260 17,289 Allos Therapeutics, Inc.*... 1,250 7,662 Alnylam Pharmaceuticals, Inc.*.................... 840 15,431 Amicus Therapeutics, Inc.*.. 120 1,074 Arena Pharmaceuticals, Inc.*.................... 1,750 4,918 Ariad Pharmaceuticals, Inc.*.................... 2,040 3,060 ArQule, Inc.*............... 960 4,272 Array BioPharma, Inc.*...... 1,120 3,282 Celera Corp.*............... 1,890 15,290 Cell Genesys, Inc.*......... 2,030 1,137 Celldex Therapeutics Inc*... 350 3,031 Cepheid, Inc.*.............. 1,350 13,095 Cougar Biotechnology, Inc.*.................... 350 12,222 Cubist Pharmaceuticals, Inc.*.................... 1,330 22,078 Cytokinetics, Inc.*......... 890 1,655 Cytori Therapeutics, Inc.*.. 590 1,056 Dendreon Corp.*............. 2,320 49,184 Dyax Corp.*................. 1,320 2,587 Emergent Biosolutions, Inc.*.................... 320 3,427 Enzon Pharmaceuticals, Inc.*.................... 1,060 6,095 Facet Biotech Corp.*........ 560 5,236 Genomic Health, Inc.*....... 330 7,425 Geron Corp.*................ 2,040 10,486 GTx, Inc.*.................. 440 4,325 Halozyme Therapeutics, Inc.*.................... 1,440 9,101 Human Genome Sciences, Inc.*.................... 3,209 7,028 Idenix Pharmaceuticals, Inc.*.................... 590 2,183 Idera Pharmaceuticals, Inc.*.................... 490 2,945 Immunogen, Inc.*............ 1,200 8,340 Immunomedics, Inc.*......... 1,550 1,798 Incyte Corp.*............... 1,800 4,248 InterMune, Inc.*............ 830 11,238 Isis Pharmaceuticals, Inc.*.................... 2,140 33,555 Lexicon Pharmaceuticals, Inc.*.................... 1,900 2,090 Ligand Pharmaceuticals, Inc. -- Class B*......... 2,420 7,236 MannKind Corp.*............. 1,220 4,990 Marshall Edwards, Inc.*..... 490 270 Martek Biosciences Corp. ... 780 14,212 Maxygen, Inc.*.............. 600 3,510 Medarex, Inc.*.............. 3,019 17,872
See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Medivation, Inc.*........... 600 $11,598 Metabolix, Inc.*............ 450 3,555 Molecular Insight Pharmaceuticals, Inc.*... 420 1,562 Momenta Pharmaceuticals, Inc.*.................... 630 7,056 Myriad Genetics, Inc.*...... 2,110 81,847 Nabi Biopharmaceuticals*.... 1,230 4,231 Nanosphere, Inc.*........... 310 1,085 Neurocrine Biosciences, Inc.*.................... 910 3,003 Novavax, Inc.*.............. 1,370 3,343 NPS Pharmaceuticals, Inc.*.. 1,120 3,875 Onyx Pharmaceuticals, Inc.*.................... 1,320 34,188 Opko Health, Inc.*.......... 1,140 1,345 Orexigen Therapeutics, Inc.*.................... 470 1,335 OSI Pharmaceuticals, Inc.*.. 1,350 45,319 Osiris Therapeutics, Inc.*.. 350 4,435 PDL BioPharma, Inc. ........ 2,819 20,156 Pharmasset, Inc.*........... 480 4,320 Progenics Pharmaceuticals, Inc.*.................... 630 3,452 Protalix BioTherapeutics, Inc.*.................... 260 759 Regeneron Pharmaceuticals, Inc.*.................... 1,470 19,492 Repligen Corp.*............. 730 3,103 Rexahn Pharmaceuticals, Inc.*.................... 690 449 Rigel Pharmaceuticals, Inc.*.................... 860 5,710 Sangamo Biosciences, Inc.*.. 870 3,698 Savient Pharmaceuticals, Inc.*.................... 1,280 6,758 Seattle Genetics, Inc.*..... 1,550 14,306 Synta Pharmaceuticals Corp.*................... 400 1,300 Targacept, Inc.*............ 430 1,544 Theravance, Inc.*........... 1,220 17,483 United Therapeutics Corp.*.. 630 39,570 XOMA, Ltd.*................. 3,129 1,690 Zymogenetics, Inc.*......... 880 3,080 ----------- TOTAL BIOTECHNOLOGY 788,802 ----------- BUILDING PRODUCTS 0.5% AAON, Inc. ................. 320 6,234 American Woodmark Corp. .... 250 5,175 Ameron International Corp. ................... 220 13,017 Apogee Enterprises, Inc. ... 680 9,112 Builders FirstSource, Inc.*.................... 380 1,258 China Architectural Engineering, Inc.*....... 440 682 Gibraltar Industries, Inc. .................... 640 4,288 Griffon Corp.*.............. 1,270 11,011 Insteel Industries, Inc. ... 410 3,054 NCI Building Systems, Inc.*.................... 470 1,857 Quanex Building Products Corp. ................... 880 9,020 Simpson Manufacturing Co., Inc. .................... 880 19,589 Trex Co., Inc.*............. 360 3,942 Universal Forest Products, Inc. .................... 390 13,088 ----------- TOTAL BUILDING PRODUCTS 101,327 ----------- CAPITAL MARKETS 1.6% Apollo Investment Corp. .... 3,369 16,171 Ares Capital Corp. ......... 2,301 13,505 BGC Partners, Inc. -- Class A........................ 790 2,046 BlackRock Kelso Capital Corp. ................... 310 1,810 Broadpoint Securities Group, Inc.*.................... 600 2,586 Calamos Asset Management, Inc. -- Class A.......... 480 5,477 Capital Southwest Corp. .... 70 5,443 Cohen & Steers, Inc. ....... 400 5,888 Diamond Hill Investment Group, Inc.*............. 50 2,003 Epoch Holding Corp. ........ 260 1,916 Evercore Partners, Inc. -- Class A.......... 230 4,342 FBR Capital Markets Corp.*.. 610 2,532 FCStone Group, Inc.*........ 540 1,669 GAMCO Investors, Inc. -- Class A.......... 180 9,027 GFI Group, Inc. ............ 1,560 6,365 Gladstone Capital Corp. .... 500 3,355 Gladstone Invt Corp. ....... 520 1,893 Greenhill & Co., Inc. ...... 430 33,338 Harris & Harris Group, Inc.*.................... 610 2,952 Hercules Technology Growth Capital, Inc. ........... 780 4,688 International Assets Holding Corp.*................... 110 1,329 Kayne Anderson Energy Development Co. ......... 240 2,618 KBW, Inc.*.................. 650 15,723 Knight Capital Group, Inc. -- Class A*......... 2,220 34,388 Kohlberg Capital Corp. ..... 410 1,460 LaBranche & Co., Inc.*...... 1,140 4,765 Ladenburg Thalmann Financial Services, Inc.*.......... 2,540 1,829 MCG Capital Corp. .......... 1,790 3,150 MVC Capital, Inc. .......... 580 4,965 NGP Capital Resources Co. .. 511 3,584 optionsXpress Holdings, Inc. .................... 1,000 16,460 Patriot Capital Funding, Inc. .................... 490 1,107 PennantPark Investment Corp. ................... 500 2,748 Penson Worldwide, Inc.*..... 400 4,056 Piper Jaffray Cos., Inc.*... 470 16,295 Prospect Capital Corp. ..... 701 6,357 Pzena Investment Management, Inc. -- Class A.......... 150 713 Riskmetrics Group, Inc.*.... 510 8,869 Sanders Morris Harris Group, Inc. .................... 460 2,079 Stifel Financial Corp.*..... 640 31,507 SWS Group, Inc. ............ 580 7,418 thinkorswim Group, Inc.*.... 1,230 11,685 Thomas Weisel Partners Group, Inc.*............. 460 2,079 TradeStation Group, Inc.*... 760 6,164 U.S. Global Investors, Inc. -- Class A.......... 300 1,656 Virtus Investment Partners, Inc.*.................... 140 1,589 Westwood Holdings Group, Inc. .................... 130 5,131 ----------- TOTAL CAPITAL MARKETS 326,730 ----------- CHEMICALS 1.4% A. Schulman, Inc. .......... 640 10,042 American Vanguard Corp. .... 450 5,755 Arch Chemicals, Inc. ....... 590 14,266 Balchem Corp. .............. 430 10,703 Calgon Carbon Corp.*........ 1,280 21,734 Ferro Corp. ................ 1,030 2,853 Flotek Industries, Inc.*.... 540 1,118 GenTek, Inc.*............... 210 4,009 H.B. Fuller Co. ............ 1,150 20,309 ICO, Inc.*.................. 660 1,630 Innophos Holdings, Inc. .... 250 3,708 Innospec, Inc. ............. 550 4,323 Koppers Holdings, Inc. ..... 490 9,290 Landec Corp.*............... 550 3,718 LSB Industries, Inc.*....... 410 4,912 Minerals Technologies, Inc. .................... 450 16,735 NewMarket Corp. ............ 320 20,160 NL Industries, Inc. ........ 160 1,938 Olin Corp. ................. 1,770 22,302 OM Group, Inc.*............. 720 20,059 Penford Corp. .............. 270 1,207 PolyOne Corp.*.............. 2,210 6,055 Quaker Chemical Corp. ...... 260 3,042
See Notes to Financial Statements. 32 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Rockwood Holdings, Inc.*.... 990 $12,177 Sensient Technologies Corp. ................... 1,140 26,653 ShengdaTech, Inc.*.......... 710 2,570 Solutia, Inc.*.............. 2,230 8,385 Spartech Corp. ............. 720 2,830 Stepan Co. ................. 150 5,935 Westlake Chemical Corp. .... 450 8,415 WR Grace & Co.*............. 1,710 15,099 Zep, Inc. .................. 490 6,630 Zoltek Cos., Inc.*.......... 650 5,116 ----------- TOTAL CHEMICALS 303,678 ----------- COMMERCIAL BANKS 5.1% 1st Source Corp. ........... 350 6,874 AMCORE Financial, Inc. ..... 470 691 Ameris Bancorp.............. 320 2,096 Ames Natl Corp. ............ 150 3,252 Arrow Financial Corp. ...... 220 5,826 Bancfirst Corp. ............ 170 7,259 Banco Latinoamericano de Exportaciones, S.A. -- Class E.......... 650 7,995 BancTrust Financial Group, Inc. .................... 410 2,698 Bank of the Ozarks, Inc. ... 290 7,201 Banner Corp. ............... 350 1,624 Boston Private Financial Holdings, Inc. .......... 1,290 5,947 Bryn Mawr Bank Corp. ....... 160 3,141 Camden National Corp. ...... 180 5,220 Capital City Bank Group, Inc. .................... 280 4,211 Capitol Bancorp, Ltd. ...... 340 1,244 Cardinal Financial Corp. ... 570 4,474 Cascade Bancorp............. 530 880 Cathay General Bancorp...... 1,170 13,127 Centerstate Banks of Florida, Inc. ........... 220 2,642 Central Pacific Financial Corp. ................... 680 3,985 Chemical Financial Corp. ... 560 11,956 Citizens + Northn Corp. .... 210 4,164 Citizens Republic Bancorp, Inc.*.................... 2,979 5,005 City Bank................... 320 1,002 City Holding Co. ........... 380 11,206 CoBiz Financial, Inc. ...... 450 2,642 Colonial BancGroup, Inc. ... 4,779 3,632 Columbia Banking System, Inc. .................... 430 4,257 Community Bank System, Inc. .................... 770 12,666 Community Trust Bancorp, Inc. .................... 350 10,591 CVB Financial Corp. ........ 1,570 9,436 East West Bancorp, Inc. .... 1,500 10,245 Encore Bancshares, Inc.*.... 150 1,371 Enterprise Financial Services Corp. .......... 260 2,561 F.N.B. Corp. ............... 2,040 15,341 Farmers Capital Bank Corp. ................... 150 3,183 Financial Institutions, Inc. .................... 260 3,861 First Bancorp Inc/ME........ 200 3,490 First BanCorp. ............. 1,680 9,257 First Bancorp. ............. 340 4,138 First Busey Corp. .......... 600 4,698 First Commonwealth Financial Corp. ................... 2,010 17,427 First Community Bancshares, Inc. .................... 230 3,323 First Financial Bancorp..... 890 9,603 First Financial Bankshares, Inc. .................... 490 24,147 First Financial Corp. ...... 270 10,017 First Merchants Corp. ...... 520 6,323 First Midwest Bancorp, Inc. .................... 1,150 10,189 First South Bancorp, Inc. .. 190 2,196 FirstMerit Corp. ........... 1,910 37,073 Frontier Financial Corp. ... 1,110 1,576 Glacier Bancorp, Inc. ...... 1,440 22,061 Greene Bankshares, Inc. .... 310 2,635 Guaranty Bancorp*........... 1,250 2,775 Hancock Holding Co. ........ 610 23,101 Hanmi Financial Corp. ...... 880 1,364 Harleysville National Corp. ................... 1,010 8,858 Heartland Financial USA, Inc. .................... 310 4,582 Heritage Commerce Corp. .... 250 2,020 Home Bancshares, Inc. ...... 310 6,835 IBERIABANK Corp. ........... 380 17,358 Independent Bank Corp. ..... 390 7,784 Integra Bank Corp. ......... 490 1,058 International Bancshares Corp. ................... 1,210 16,347 Investors Bancorp, Inc.*.... 1,040 9,526 Lakeland Bancorp, Inc. ..... 480 4,085 Lakeland Financial Corp. ... 290 5,443 MainSource Financial Group, Inc. .................... 480 4,157 MB Financial, Inc. ......... 820 11,177 Midwest Banc Holdings, Inc. .................... 530 859 Nara Bancorp, Inc. ......... 540 2,003 National Penn Bancshares, Inc. .................... 1,880 15,209 NBT Bancorp, Inc. .......... 760 17,997 Northfield Bancorp, Inc. ... 470 5,311 Old National Bancorp........ 1,570 21,399 Old Second Bancorp, Inc. ... 330 1,782 Oriental Financial Group.... 570 5,295 Pacific Capital Bancorp..... 1,090 7,565 Pacific Continental Corp. .. 270 3,100 PacWest Bancorp............. 660 9,616 Park National Corp. ........ 260 17,407 Peapack Gladstone Financial Corp. ................... 200 3,792 Pennsylvania Commerce Bancorp, Inc.*........... 120 2,652 Peoples Bancorp, Inc. ...... 240 3,977 Pinnacle Financial Partners, Inc.*.................... 560 9,990 Premierwest Bancorp......... 480 1,829 PrivateBancorp, Inc. ....... 510 10,327 Prosperity Bancshares, Inc. .................... 930 25,826 Provident Bankshares Corp. ................... 780 6,856 Renasant Corp. ............. 500 7,050 Republic Bancorp, Inc. -- Class A.......... 220 4,893 S&T Bancorp, Inc. .......... 560 10,007 S.Y. Bancorp, Inc. ......... 320 8,070 Sandy Spring Bancorp, Inc. .................... 390 6,337 Santander BanCorp........... 100 670 SCBT Financial Corp. ....... 270 6,229 Seacoast Banking Corp. of Florida.................. 350 1,477 Shore Bancshares, Inc. ..... 200 3,878 Sierra Bancorp.............. 180 2,162 Signature Bank*............. 830 22,568 Simmons First National Corp. -- Class A......... 330 8,557 Smithtown Bancorp, Inc. .... 230 3,082 South Financial Group, Inc. .................... 2,010 3,337 Southside Bancshares, Inc. .................... 301 6,401 Southwest Bancorp, Inc. .... 340 2,329 State Bancorp Inc/NY........ 340 2,802 StellarOne Corp. ........... 530 6,821 Sterling Bancorp............ 430 4,919 Sterling Bancshares, Inc. .. 1,730 11,504 Sterling Financial Corp. ... 1,230 3,924 Suffolk Bancorp............. 230 5,888 Sun Bancorp, Inc.*.......... 361 2,372 Susquehanna Bancshares, Inc. .................... 2,030 16,362 SVB Financial Group*........ 710 14,740
See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Texas Capital Bancshares, Inc.*.................... 650 $9,100 Tompkins Financial Corp. ... 140 5,901 TowneBank/Portsmouth VA..... 490 8,443 Trico Bancshares............ 330 5,280 Trustmark Corp. ............ 1,170 25,436 UCBH Holdings, Inc. ........ 2,779 3,557 UMB Financial Corp. ........ 740 33,870 Umpqua Holdings Corp. ...... 1,420 13,618 Union Bankshares Corp. ..... 320 5,469 United Bankshares, Inc. .... 900 23,346 United Community Banks, Inc. .................... 970 6,256 United Security Bancshares Co. ..................... 200 1,448 Univest Corp. of Pennsylvania............. 300 6,261 W Holding Co, Inc. ......... 50 1,159 Washington Trust Bancorp, Inc. .................... 320 5,840 WesBanco, Inc. ............. 630 12,531 West Bancorporation, Inc. .. 410 3,608 West Coast Bancorp.......... 370 1,043 Westamerica Bancorp......... 690 37,005 Western Alliance Bancorp*... 510 3,320 Wilshire Bancorp, Inc. ..... 460 1,858 Wintrust Financial Corp. ... 560 9,520 Yadkin Valley Financial Corp. ................... 380 3,116 ----------- TOTAL COMMERCIAL BANKS 1,064,285 ----------- COMMERCIAL SERVICES & SUPPLIES 3.6% ABM Industries, Inc. ....... 1,030 18,046 ACCO Brands Corp.*.......... 1,280 2,675 Administaff, Inc. .......... 510 13,597 Advisory Board Co.(The)*.... 380 7,083 American Ecology Corp. ..... 390 6,443 American Reprographics Co.*..................... 860 5,547 AMREP Corp.*................ 40 744 ATC Technology Corp.*....... 470 7,468 Bowne & Co., Inc. .......... 640 3,270 Casella Waste Systems, Inc. -- Class A*......... 530 1,092 CBIZ, Inc.*................. 1,060 8,332 CDI Corp. .................. 290 3,466 Cenveo, Inc.*............... 1,140 5,381 Clean Harbors, Inc.*........ 470 23,547 Comfort Systems USA, Inc. .. 950 10,250 COMSYS IT Partners, Inc.*... 340 1,795 Consolidated Graphics, Inc.*.................... 240 4,661 Cornell Cos., Inc.*......... 260 4,727 CoStar Group, Inc.*......... 460 17,043 Courier Corp. .............. 250 3,920 CRA International, Inc.*.... 260 6,068 Deluxe Corp. ............... 1,220 17,690 Duff & Phelps Corp. -- Class A*....................... 250 4,715 EnergySolutions, Inc. ...... 790 7,663 EnerNOC, Inc.*.............. 230 4,018 Ennis, Inc. ................ 610 5,490 Exponent, Inc.*............. 320 8,928 First Advantage Corp. -- Class A*........ 240 3,442 Fuel Tech, Inc.*............ 450 5,900 G&K Services, Inc. -- Class A........................ 440 10,987 Geo Group, Inc.(The)*....... 1,210 20,122 GeoEye, Inc.*............... 430 10,703 Healthcare Services Group, Inc. .................... 940 16,807 Heidrick & Struggles International, Inc. ..... 410 6,929 Herman Miller, Inc. ........ 1,330 19,777 Hill International, Inc.*... 550 2,222 HNI Corp. .................. 1,050 16,275 Hudson Highland Group, Inc.*.................... 590 968 Huron Consulting Group, Inc.*.................... 490 23,495 ICF International, Inc.*.... 160 4,402 ICT Group, Inc.*............ 210 1,487 Innerworkings, Inc.*........ 700 3,535 Interface, Inc. -- Class A.. 1,260 7,295 Kelly Services, Inc. -- Class A.......... 620 7,043 Kforce, Inc.*............... 730 7,964 Kimball International, Inc. -- Class B.......... 760 4,172 Knoll, Inc. ................ 1,150 8,142 Korn/Ferry International*... 1,100 11,649 LECG Corp.*................. 600 1,746 M&F Worldwide Corp.*........ 270 4,307 McGrath RentCorp............ 560 11,838 Metalico, Inc.*............. 570 1,311 Mine Safety Appliances Co. ..................... 730 17,994 Mobile Mini, Inc.*.......... 820 11,234 MPS Group, Inc.*............ 2,230 17,929 Multi-Color Corp. .......... 250 2,968 Navigant Consulting, Inc.*.. 1,140 16,769 Odyssey Marine Exploration, Inc.*.................... 1,240 4,315 On Assignment, Inc.*........ 840 2,957 PRG-Schultz International, Inc.*.................... 350 1,036 Protection One, Inc.*....... 150 461 Resources Connection, Inc.*.................... 1,080 21,114 Rollins, Inc. .............. 980 17,640 Schawk, Inc. ............... 360 2,588 School Specialty, Inc.*..... 440 8,259 Spherion Corp.*............. 1,220 4,380 Standard Parking Corp.*..... 170 2,591 Standard Register Co.(The).. 350 1,827 SYKES Enterprises, Inc.*.... 780 15,335 Team, Inc.*................. 440 6,323 Tetra Tech, Inc.*........... 1,390 34,138 TrueBlue, Inc.*............. 1,050 10,196 United Stationers, Inc.*.... 550 18,001 Viad Corp. ................. 490 9,349 Volt Information Sciences, Inc.*.................... 280 2,010 VSE Corp. .................. 90 2,690 Waste Connections, Inc.*.... 1,890 48,724 Waste Services, Inc.*....... 560 3,024 Watson Wyatt Worldwide, Inc. -- Class A.......... 1,010 53,580 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 753,609 ----------- COMMUNICATIONS EQUIPMENT 2.6% 3Com Corp.*................. 9,538 38,629 Acme Packet, Inc.*.......... 590 4,549 Adtran, Inc. ............... 1,330 28,129 Airvana, Inc.*.............. 570 3,243 Anaren, Inc.*............... 350 4,553 Arris Group, Inc.*.......... 2,899 30,932 Aruba Networks, Inc.*....... 1,240 5,816 Avocent Corp.*.............. 1,060 15,306 Bel Fuse, Inc. -- Class B... 280 4,530 BigBand Networks, Inc.*..... 780 4,571 Black Box Corp. ............ 410 11,222 Blue Coat Systems, Inc.*.... 780 10,343 Cogo Group, Inc.*........... 560 4,581 Comtech Telecommunications Corp.*................... 670 22,425 DG FastChannel, Inc.*....... 420 9,799 Digi International, Inc.*... 610 4,435 EMS Technologies, Inc.*..... 370 7,048 Emulex Corp.*............... 2,000 20,940 Extreme Networks*........... 2,090 3,678
See Notes to Financial Statements. 34 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Finisar Corp.*.............. 9,338 $6,163 Globecomm Systems, Inc.*.... 480 3,264 Harmonic, Inc.*............. 2,230 16,346 Harris Stratex Networks, Inc. -- Class A*......... 600 2,412 Hughes Communications, Inc.*.................... 170 3,259 Infinera Corp.*............. 2,200 18,568 InterDigital, Inc.*......... 1,070 28,162 Ixia*....................... 1,010 5,818 Loral Space & Communications, Ltd.*.... 280 6,538 MRV Communications, Inc.*... 3,719 1,711 NETGEAR, Inc.*.............. 840 13,448 Nextwave Wireless, Inc.*.... 1,150 218 Oclaro, Inc.*............... 4,109 4,068 Oplink Communications, Inc.*.................... 490 5,410 Opnext, Inc.*............... 640 1,619 Orbcomm, Inc.*.............. 750 960 Palm, Inc.*................. 2,540 26,645 Parkervision, Inc.*......... 670 1,876 PC-Tel, Inc. ............... 430 2,094 Plantronics, Inc. .......... 1,160 14,778 Polycom, Inc.*.............. 2,070 38,585 Powerwave Technologies, Inc.*.................... 3,109 2,643 Riverbed Technology, Inc.*.. 1,330 24,366 SeaChange International, Inc.*.................... 730 4,577 ShoreTel, Inc.*............. 1,020 5,090 Sonus Networks, Inc.*....... 4,829 8,354 Starent Networks Corp.*..... 700 13,811 Sycamore Networks, Inc.*.... 4,529 13,361 Symmetricom, Inc.*.......... 1,090 5,428 Tekelec*.................... 1,540 23,870 Utstarcom, Inc.*............ 2,610 3,054 ViaSat, Inc.*............... 600 13,794 ----------- TOTAL COMMUNICATIONS EQUIPMENT 555,019 ----------- COMPUTERS & PERIPHERALS 0.7% 3PAR, Inc.*................. 640 4,902 Adaptec, Inc.*.............. 2,859 8,177 Avid Technology, Inc.*...... 710 7,860 Compellent Technologies, Inc.*.................... 330 3,683 Cray, Inc.*................. 780 3,276 Data Domain, Inc.*.......... 820 13,596 Electronics for Imaging, Inc.*.................... 1,260 12,373 Hutchinson Technology, Inc.*.................... 560 1,075 Hypercom Corp.*............. 1,260 1,361 Imation Corp. .............. 710 7,100 Immersion Corp.*............ 660 2,752 Intermec, Inc.*............. 1,460 17,637 Intevac, Inc.*.............. 510 3,514 Isilon Systems, Inc.*....... 580 1,491 Netezza Corp.*.............. 930 7,524 Novatel Wireless, Inc.*..... 750 5,137 Presstek, Inc.*............. 650 1,254 Quantum Corp.*.............. 4,859 5,102 Rackable Systems, Inc.*..... 700 3,192 Rimage Corp.*............... 230 3,386 STEC, Inc.*................. 730 7,008 Stratasys, Inc.*............ 490 4,586 Super Micro Computer, Inc.*.................... 560 2,923 Synaptics, Inc.*............ 800 25,984 ----------- TOTAL COMPUTERS & PERIPHERALS 154,893 ----------- CONSTRUCTION & ENGINEERING 0.8% Dycom Industries, Inc.*..... 950 7,999 EMCOR Group, Inc.*.......... 1,610 33,472 Furmanite Corp.*............ 860 3,406 Granite Construction, Inc. .................... 780 30,771 Great Lakes Dredge & Dock Corp. ................... 940 3,722 Insituform Technologies, Inc. -- Class A*......... 880 13,490 Integrated Electrical Services, Inc.*.......... 180 1,730 Layne Christensen Co.*...... 450 9,747 MasTec, Inc.*............... 1,140 14,261 Michael Baker Corp.*........ 170 5,712 Northwest Pipe Co.*......... 220 8,345 Orion Marine Group, Inc.*... 510 7,640 Perini Corp.*............... 1,190 20,587 Pike Electric Corp.*........ 400 4,152 Sterling Construction Co, Inc.*.................... 270 5,068 ----------- TOTAL CONSTRUCTION & ENGINEERING 170,102 ----------- CONSTRUCTION MATERIALS 0.1% Headwaters, Inc.*........... 990 2,495 Texas Industries, Inc. ..... 550 17,589 U.S. Concrete, Inc.*........ 870 1,722 United States Lime & Minerals, Inc.*.......... 40 1,550 ----------- TOTAL CONSTRUCTION MATERIALS 23,356 ----------- CONSUMER FINANCE 0.3% Advance America Cash Advance Centers, Inc. ........... 990 3,960 Advanta Corp. -- Class B.... 910 1,065 Cardtronics, Inc.*.......... 300 735 Cash America International, Inc. .................... 690 15,428 CompuCredit Corp.*.......... 380 1,216 Credit Acceptance Corp.*.... 140 3,219 Dollar Financial Corp.*..... 570 5,757 Ezcorp, Inc. -- Class A*.... 1,060 13,133 First Cash Financial Services, Inc.*.......... 470 7,727 First Marblehead Corp (The)*................... 1,640 3,149 Nelnet, Inc. -- Class A*.... 410 2,472 World Acceptance Corp.*..... 390 11,575 ----------- TOTAL CONSUMER FINANCE 69,436 ----------- CONTAINERS & PACKAGING 0.4% AEP Industries, Inc.*....... 130 2,643 Boise, Inc.*................ 840 722 Bway Holding Co.*........... 180 1,678 Graphic Packaging Holding Co.*..................... 3,419 5,881 Myers Industries, Inc. ..... 670 6,720 Rock-Tenn Co. -- Class A.... 900 33,984 Silgan Holdings, Inc. ...... 600 27,894 ----------- TOTAL CONTAINERS & PACKAGING 79,522 ----------- DISTRIBUTORS 0.0%(A) Aristotle Corp (The)*....... 30 101 Audiovox Corp. -- Class A*.. 410 2,280 Core-Mark Holding Co., Inc.*.................... 220 4,217 ----------- TOTAL DISTRIBUTORS 6,598 ----------- DIVERSIFIED CONSUMER SERVICES 0.9% American Public Education, Inc.*.................... 260 9,360 Capella Education Co.*...... 340 17,469 Coinstar, Inc.*............. 660 23,489 Corinthian Colleges, Inc.*.. 2,020 31,108 Grand Canyon Education, Inc.*.................... 250 4,088 Jackson Hewitt Tax Service, Inc. .................... 670 3,276 K12, Inc.*.................. 150 2,637
See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Learning Tree International, Inc.*.................... 210 $1,726 Lincoln Educational Services Corp.*................... 100 1,659 Matthews International Corp. -- Class A......... 740 23,177 Pre-Paid Legal Services, Inc.*.................... 170 6,261 Princeton Review, Inc.*..... 320 1,389 Regis Corp. ................ 1,020 19,523 Sotheby's................... 1,590 18,460 Steiner Leisure, Ltd.*...... 340 10,758 Stewart Enterprises, Inc. -- Class A.......... 1,980 6,910 Universal Technical Institute, Inc.*......... 510 7,262 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 188,552 ----------- DIVERSIFIED FINANCIAL SERVICES 0.5% Ampal-American Israel Corp -- Class A*......... 470 1,100 Asset Acceptance Capital Corp.*................... 350 2,901 Compass Diversified Holdings................. 560 5,006 Encore Capital Group, Inc.*.................... 320 2,797 Fifth Street Finance Corp. ................... 240 1,800 Financial Federal Corp. .... 600 14,766 Interactive Brokers Group, Inc. -- Class A*......... 960 14,160 Life Partners Holdings, Inc. .................... 180 3,370 MarketAxess Holdings, Inc.*.................... 730 7,001 Medallion Financial Corp. .. 350 2,580 NewStar Financial, Inc.*.... 570 1,294 PHH Corp.*.................. 1,280 21,478 Pico Holdings, Inc.*........ 380 11,400 Portfolio Recovery Associates, Inc.*........ 360 12,589 Primus Guaranty, Ltd.*...... 500 1,020 Resource America, Inc. -- Class A.......... 230 1,141 Teton Advisors, Inc. ....... 1 -- ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 104,403 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.8% Alaska Communications Systems Group, Inc. ..... 1,020 6,151 Atlantic Tele-Network, Inc. .................... 220 4,858 Cbeyond, Inc.*.............. 570 11,617 Cincinnati Bell, Inc.*...... 5,449 15,203 Cogent Communications Group, Inc.*.................... 1,060 8,946 Consolidated Communications Holdings, Inc. .......... 550 6,187 Fairpoint Communications, Inc. .................... 2,110 2,194 General Communication, Inc. -- Class A*......... 1,070 8,196 Global Crossing Ltd.*....... 620 4,501 Globalstar, Inc.*........... 1,220 793 Ibasis, Inc.*............... 710 745 IDT Corp.- Class B*......... 430 585 Iowa Telecommunications Services, Inc. .......... 760 10,017 Neutral Tandem, Inc.*....... 390 11,154 NTELOS Holdings Corp. ...... 710 11,346 PAETEC Holding Corp.*....... 2,919 8,961 Premiere Global Services, Inc.*.................... 1,460 15,388 Shenandoah Telecom Co. ..... 560 10,993 TW Telecom Inc*............. 3,479 31,972 Vonage Holdings Corp.*...... 1,220 464 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 170,271 ----------- ELECTRIC UTILITIES 1.4% Allete, Inc. ............... 660 17,186 Central Vermont Public Service Corp. ........... 270 4,633 Cleco Corp. ................ 1,420 29,948 El Paso Electric Co.*....... 1,060 14,628 Empire District Electric Co.(The)................. 800 11,976 IDACORP, Inc. .............. 1,070 25,648 ITC Holdings Corp. ......... 1,170 50,930 MGE Energy, Inc. ........... 520 15,954 NorthWestern Corp. ......... 850 17,782 Portland General Electric Co. ..................... 1,780 32,521 UIL Holdings Corp. ......... 600 13,854 Unisource Energy Corp. ..... 810 21,319 Westar Energy, Inc. ........ 2,480 43,474 ----------- TOTAL ELECTRIC UTILITIES 299,853 ----------- ELECTRICAL EQUIPMENT 1.8% Acuity Brands, Inc. ........ 960 27,590 Advanced Battery Technologies, Inc.*...... 1,040 2,860 Akeena Solar, Inc.*......... 490 544 American Superconductor Corp.*................... 990 25,443 AO Smith Corp. ............. 470 14,612 AZZ, Inc.*.................. 290 8,970 Baldor Electric Co. ........ 1,090 25,288 Beacon Power Corp.*......... 2,590 2,202 Belden, Inc. ............... 1,100 17,732 Brady Corp. -- Class A...... 1,190 25,073 Capstone Turbine Corp.*..... 4,109 3,287 China BAK Battery, Inc.*.... 780 1,661 Coleman Cable, Inc.*........ 190 473 Encore Wire Corp. .......... 430 9,391 Ener1, Inc.*................ 960 5,654 Energy Conversion Devices, Inc.*.................... 1,070 19,667 EnerSys*.................... 650 11,083 Evergreen Solar, Inc.*...... 3,389 8,235 Franklin Electric Co., Inc. .................... 540 12,793 FuelCell Energy, Inc.*...... 1,620 5,152 Fushi Copperweld, Inc.*..... 340 1,727 GrafTech International, Ltd.*.................... 2,829 24,867 GT Solar International, Inc.*.................... 720 5,105 Harbin Electric, Inc.*...... 180 1,436 II-VI, Inc.*................ 580 13,903 LaBarge, Inc.*.............. 290 2,393 LSI Industries, Inc. ....... 440 2,468 Medis Technologies, Ltd.*... 740 266 Microvision, Inc.*.......... 1,610 2,995 Orion Energy Systems, Inc.*.................... 180 765 Plug Power, Inc.*........... 2,749 2,722 Polypore International, Inc.*.................... 380 2,865 Powell Industries, Inc.*.... 180 6,478 Power-One, Inc.*............ 1,770 2,142 PowerSecure International, Inc.*.................... 400 1,656 Preformed Line Products Co. ..................... 60 2,226 Regal-Beloit Corp. ......... 760 30,879 Ultralife Corp.*............ 300 2,145 Valence Technology, Inc.*... 1,270 2,845 Vicor Corp. ................ 460 2,470 Woodward Governor Co. ...... 1,390 27,744 ----------- TOTAL ELECTRICAL EQUIPMENT 367,807 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.7% Agilysys, Inc. ............. 540 3,256 Anixter International, Inc.*.................... 710 28,244 Benchmark Electronics, Inc.*.................... 1,600 19,408 Brightpoint, Inc.*.......... 1,180 6,148 Checkpoint Systems, Inc.*... 940 11,421 China Security & Surveillance Technology, Inc.*.................... 740 5,017 Cogent, Inc.*............... 970 11,000 Cognex Corp. ............... 940 13,226
See Notes to Financial Statements. 36 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Coherent, Inc.*............. 560 $10,640 Comverge, Inc.*............. 520 3,988 CPI International, Inc.*.... 230 2,519 CTS Corp. .................. 800 4,856 Daktronics, Inc. ........... 780 7,051 DTS, Inc.*.................. 420 11,193 Echelon Corp.*.............. 700 5,572 Electro Rent Corp. ......... 480 4,594 Electro Scientific Industries, Inc.*........ 640 5,504 Elixir Gaming Technologies, Inc.*.................... 1,600 176 FARO Technologies, Inc.*.... 390 5,912 Gerber Scientific, Inc.*.... 560 2,212 ICx Technologies, Inc.*..... 320 1,197 Insight Enterprises, Inc.*.. 1,110 6,349 IPG Photonics Corp.*........ 450 5,027 L-1 Identity Solutions, Inc.*.................... 1,710 12,517 Littelfuse, Inc.*........... 510 8,359 Maxwell Technologies, Inc.*.................... 470 4,813 Measurement Specialties, Inc.*.................... 340 2,309 Mercury Computer Systems, Inc.*.................... 540 4,385 Methode Electronics, Inc. .. 900 5,418 MTS Systems Corp. .......... 420 8,875 Multi-Fineline Electronix, Inc.*.................... 210 4,215 Newport Corp.*.............. 850 4,242 OSI Systems, Inc.*.......... 370 6,937 Park Electrochemical Corp. ................... 480 9,888 PC Connection, Inc.*........ 220 1,089 PC Mall, Inc.*.............. 260 1,664 Plexus Corp.*............... 940 20,821 Radisys Corp.*.............. 530 3,800 Rofin-Sinar Technologies, Inc.*.................... 700 14,917 Rogers Corp.*............... 370 9,416 Sanmina-SCI Corp.*.......... 12,558 7,032 Scansource, Inc.*........... 620 15,320 Smart Modular Technologies WWH, Inc.*............... 1,050 2,583 SYNNEX Corp.*............... 410 8,827 Technitrol, Inc. ........... 970 3,948 TTM Technologies, Inc.*..... 1,010 7,494 Universal Display Corp.*.... 680 7,677 Zygo Corp.*................. 360 1,807 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 352,863 ----------- ENERGY EQUIPMENT & SERVICES 1.0% Allis-Chalmers Energy, Inc.*.................... 660 1,274 Basic Energy Services, Inc.*.................... 980 9,996 Bolt Technology Corp.*...... 200 2,034 Bristow Group, Inc.*........ 570 12,973 Bronco Drilling Co., Inc.*.. 620 3,404 Cal Dive International, Inc.*.................... 1,050 8,316 CARBO Ceramics, Inc. ....... 490 15,048 Complete Production Services, Inc.*.......... 1,140 7,615 Dawson Geophysical Co.*..... 180 3,539 Dril-Quip, Inc.*............ 730 25,097 ENGlobal Corp.*............. 640 3,693 Geokinetics, Inc.*.......... 110 518 Gulf Island Fabrication, Inc. .................... 290 3,753 Gulfmark Offshore, Inc.*.... 530 14,246 Hornbeck Offshore Services, Inc.*.................... 550 12,777 ION Geophysical Corp.*...... 2,120 5,300 Lufkin Industries, Inc. .... 350 12,215 Matrix Service Co.*......... 620 5,940 Mitcham Industries, Inc.*... 230 1,035 NATCO Group, Inc. -- Class A*....................... 470 11,308 Natural Gas Services Group, Inc.*.................... 290 2,894 Newpark Resources, Inc.*.... 2,130 5,964 OYO Geospace Corp.*......... 100 1,590 Parker Drilling Co.*........ 2,670 7,369 PHI, Inc.*.................. 320 3,622 Pioneer Drilling Co.*....... 1,180 5,900 RPC, Inc. .................. 690 7,383 Sulphco, Inc.*.............. 1,370 1,233 Superior Well Services, Inc.*.................... 390 4,173 T-3 Energy Services, Inc.*.. 300 4,029 Trico Marine Services, Inc.*.................... 300 1,164 Union Drilling, Inc.*....... 300 1,797 Willbros Group, Inc.*....... 920 10,543 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 217,742 ----------- FOOD & STAPLES RETAILING 0.8% Andersons, Inc.(The)........ 430 6,910 Arden Group, Inc. -- Class A........................ 30 3,510 Casey's General Stores, Inc. .................... 1,200 31,932 Great Atlantic & Pacific Tea Co., Inc.*............... 830 6,092 Ingles Markets, Inc. -- Class A.......... 300 4,683 Nash Finch Co. ............. 300 8,787 Pantry, Inc.(The)*.......... 530 12,519 Pricesmart, Inc. ........... 340 6,069 Ruddick Corp. .............. 1,000 25,660 Spartan Stores, Inc. ....... 520 8,460 Susser Holdings Corp.*...... 180 2,601 United Natural Foods, Inc.*.................... 1,010 23,008 Village Super Market -- Class A........ 150 4,647 Weis Markets, Inc. ......... 260 9,617 Winn-Dixie Stores, Inc.*.... 1,280 14,669 ----------- TOTAL FOOD & STAPLES RETAILING 169,164 ----------- FOOD PRODUCTS 1.7% AgFeed Industries, Inc.*.... 550 2,013 Alico, Inc. ................ 80 2,122 American Dairy, Inc.*....... 170 2,688 B&G Foods, Inc. -- Class A.. 440 2,693 Cal-Maine Foods, Inc. ...... 310 8,206 Calavo Growers, Inc. ....... 250 3,553 Chiquita Brands International, Inc.*..... 1,020 7,721 Darling International, Inc.*.................... 1,930 11,040 Diamond Foods, Inc. ........ 380 9,952 Farmer Brothers Co. ........ 160 3,160 Flowers Foods, Inc. ........ 1,830 42,273 Fresh Del Monte Produce, Inc.*.................... 990 14,375 Green Mountain Coffee Roasters, Inc.*.......... 410 29,647 Griffin Land & Nurseries, Inc. .................... 80 2,490 Hain Celestial Group, Inc.*.................... 960 16,022 HQ Sustainable Maritime Industries, Inc.*........ 160 1,493 Imperial Sugar Co. ......... 280 1,834 J&J Snack Foods Corp. ...... 340 13,178 Lancaster Colony Corp. ..... 480 21,024 Lance, Inc. ................ 640 14,822 Lifeway Foods, Inc.*........ 110 992 Omega Protein Corp.*........ 430 1,372 Ralcorp Holdings, Inc.*..... 1,330 76,023 Reddy Ice Holdings, Inc. ... 420 945 Sanderson Farms, Inc. ...... 480 19,152 Smart Balance, Inc.*........ 1,480 10,404 Synutra International, Inc.*.................... 250 2,110 Tootsie Roll Industries, Inc. .................... 580 14,123
See Notes to Financial Statements. SEMI-ANNUAL REPORT 37 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) TreeHouse Foods, Inc.*...... 740 $19,677 Zhongpin, Inc.*............. 440 3,850 ----------- TOTAL FOOD PRODUCTS 358,954 ----------- GAS UTILITIES 1.1% Chesapeake Utilities Corp. ................... 160 4,686 Laclede Group, Inc. ........ 520 18,033 New Jersey Resources Corp. ................... 990 32,591 Nicor, Inc. ................ 1,070 34,390 Northwest Natural Gas Co. .. 630 25,767 Piedmont Natural Gas Co., Inc. .................... 1,740 42,491 South Jersey Industries, Inc. .................... 700 24,297 Southwest Gas Corp. ........ 1,020 20,614 WGL Holdings, Inc. ......... 1,170 36,434 ----------- TOTAL GAS UTILITIES 239,303 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 2.8% Abaxis, Inc.*............... 510 7,711 Abiomed, Inc.*.............. 800 5,336 Accuray, Inc.*.............. 850 5,143 Align Technology, Inc.*..... 1,390 17,250 Alphatec Holdings, Inc.*.... 590 1,210 American Medical Systems Holdings, Inc.*.......... 1,720 21,276 Analogic Corp. ............. 320 11,648 Angiodynamics, Inc.*........ 570 7,222 Atrion Corp. ............... 40 3,582 Cantel Medical Corp.*....... 300 4,239 Cardiac Science Corp.*...... 460 1,357 Conceptus, Inc.*............ 710 9,613 CONMED Corp.*............... 680 9,058 CryoLife, Inc.*............. 660 3,584 Cyberonics, Inc.*........... 560 7,414 Cynosure, Inc. -- Class A*.. 230 1,408 DexCom, Inc.*............... 960 4,301 ev3, Inc.*.................. 1,660 13,878 Exactech, Inc.*............. 180 2,385 Greatbatch, Inc.*........... 540 11,362 Haemonetics Corp.*.......... 610 31,494 Hansen Medical, Inc.*....... 400 2,148 I-Flow Corp.*............... 510 2,550 ICU Medical, Inc.*.......... 280 10,528 Immucor, Inc.*.............. 1,660 27,041 Insulet Corp.*.............. 430 2,473 Integra LifeSciences Holdings Corp.*.......... 420 10,844 Invacare Corp. ............. 760 11,696 IRIS International, Inc.*... 440 4,915 Kensey Nash Corp.*.......... 170 3,560 Masimo Corp.*............... 1,090 31,501 Medical Action Industries, Inc.*.................... 330 3,201 Meridian Bioscience, Inc. .. 950 16,511 Merit Medical Systems, Inc.*.................... 650 10,081 Micrus Endovascular Corp.*.. 370 2,560 Natus Medical, Inc.*........ 650 5,707 Neogen Corp.*............... 340 7,708 NuVasive, Inc.*............. 840 31,836 NxStage Medical, Inc.*...... 610 1,366 OraSure Technologies, Inc.*.................... 1,110 4,018 Orthofix International NV*.. 400 6,820 Orthovita, Inc.*............ 1,570 4,616 Palomar Medical Technologies, Inc.*...... 430 3,702 Quidel Corp.*............... 670 7,799 RTI Biologics, Inc.*........ 1,270 4,496 Sirona Dental Systems, Inc.*.................... 400 6,544 Somanetics Corp.*........... 280 4,539 SonoSite, Inc.*............. 400 7,216 Spectranetics Corp.*........ 750 2,925 Stereotaxis, Inc.*.......... 730 2,438 STERIS Corp. ............... 1,390 33,499 SurModics, Inc.*............ 360 7,812 Symmetry Medical, Inc.*..... 840 6,098 Synovis Life Technologies, Inc.*.................... 270 4,099 Thoratec Corp.*............. 1,290 37,487 TomoTherapy, Inc.*.......... 970 2,503 TranS1, Inc.*............... 290 2,111 Vision Sciences, Inc.*...... 400 476 Vnus Medical Technologies, Inc.*.................... 310 6,867 Volcano Corp.*.............. 1,120 14,773 West Pharmaceutical Services, Inc. .......... 770 25,140 Wright Medical Group, Inc.*.................... 880 12,100 Zoll Medical Corp.*......... 490 7,879 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 582,654 ----------- HEALTH CARE PROVIDERS & SERVICES 2.5% Air Methods Corp.*.......... 250 6,637 Alliance Imaging, Inc.*..... 600 4,722 Almost Family, Inc.*........ 150 3,705 Amedisys, Inc.*............. 630 21,130 AMERIGROUP Corp.*........... 1,270 37,935 AMN Healthcare Services, Inc.*.................... 800 5,512 Amsurg Corp.*............... 740 15,200 Assisted Living Concepts, Inc. -- Class A*......... 260 5,156 Bio-Reference Labs, Inc.*... 270 6,931 BMP Sunstone Corp.*......... 550 2,145 Capital Senior Living Corp.*................... 530 2,094 CardioNet, Inc.*............ 110 2,283 Catalyst Health Solutions, Inc.*.................... 780 17,589 Centene Corp.*.............. 1,030 18,921 Chemed Corp. ............... 530 22,435 Chindex International, Inc.*.................... 260 2,129 Corvel Corp.*............... 180 4,050 Cross Country Healthcare, Inc.*.................... 730 6,431 Emergency Medical Services Corp. -- Class A*........ 220 7,665 Emeritus Corp.*............. 470 4,249 Ensign Group, Inc. ......... 200 3,100 Five Star Quality Care, Inc.*.................... 750 1,268 Genoptix, Inc.*............. 200 5,816 Gentiva Health Services, Inc.*.................... 600 9,558 Hanger Orthopedic Group, Inc.*.................... 730 10,154 Healthsouth Corp.*.......... 2,080 19,490 Healthspring, Inc.*......... 1,170 10,799 Healthways, Inc.*........... 830 8,657 HMS Holdings Corp.*......... 590 17,688 inVentiv Health, Inc.*...... 780 8,650 IPC The Hospitalist Co, Inc.*.................... 140 2,566 Kindred Healthcare, Inc.*... 660 8,593 Landauer, Inc. ............. 220 11,656 LHC Group, Inc.*............ 350 7,987 Magellan Health Services, Inc.*.................... 870 25,717 MedCath Corp.*.............. 380 3,846 Molina Healthcare, Inc.*.... 320 6,928 MWI Veterinary Supply, Inc.*.................... 240 7,459 National Healthcare Corp. .. 200 7,940 National Research Corp. .... 40 1,008 Nighthawk Radiology Holdings, Inc.*.......... 510 1,821 Odyssey HealthCare, Inc.*... 770 7,977 Owens & Minor, Inc. ........ 970 33,640
See Notes to Financial Statements. 38 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) PharMerica Corp.*........... 720 $13,140 Providence Service Corp.*... 290 2,848 PSS World Medical, Inc.*.... 1,470 21,344 Psychiatric Solutions, Inc.*.................... 1,310 25,401 RadNet, Inc.*............... 500 770 RehabCare Group, Inc.*...... 430 7,181 Res-Care, Inc.*............. 590 9,452 Skilled Healthcare Group, Inc. -- Class A*......... 410 3,579 Sun Healthcare Group, Inc.*.................... 1,020 8,639 Sunrise Senior Living, Inc.*.................... 1,060 2,703 Triple-S Mgmt Corp. -- Class B*....................... 310 3,974 Universal American Corp.*... 930 9,607 US Physical Therapy, Inc.*.. 280 3,270 Virtual Radiologic Corp.*... 160 1,466 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 532,611 ----------- HEALTH CARE TECHNOLOGY 0.5% Allscripts-Misys Healthcare Solutions, Inc. ......... 3,449 42,837 athenahealth, Inc.*......... 490 15,582 Computer Programs & Systems, Inc. .................... 220 7,698 Eclipsys Corp.*............. 1,290 17,028 MedAssets, Inc.*............ 430 7,413 Omnicell, Inc.*............. 740 6,512 Phase Forward, Inc.*........ 1,010 14,403 Vital Images, Inc.*......... 350 3,545 ----------- TOTAL HEALTH CARE TECHNOLOGY 115,018 ----------- HOTELS, RESTAURANTS & LEISURE 2.5% AFC Enterprises, Inc.*...... 600 3,726 Ambassadors Group, Inc. .... 450 5,490 Ameristar Casinos, Inc. .... 600 12,312 Bally Technologies, Inc.*... 1,290 33,772 BJ's Restaurants, Inc.*..... 410 6,761 Bluegreen Corp.*............ 300 573 Bob Evans Farms, Inc. ...... 730 17,702 Buffalo Wild Wings, Inc.*... 420 16,397 California Pizza Kitchen, Inc.*.................... 470 7,384 CEC Entertainment, Inc.*.... 480 14,621 Cheesecake Factory, Inc.(The)*............... 1,410 24,492 Churchill Downs, Inc. ...... 230 8,006 CKE Restaurants, Inc. ...... 1,240 11,867 Cracker Barrel Old Country Store, Inc. ............. 520 16,957 Denny's Corp.*.............. 2,250 6,030 DineEquity Inc. ............ 410 13,136 Domino's Pizza, Inc.*....... 930 8,779 Dover Downs Gaming & Entertainment, Inc. ..... 330 1,409 Dover Motorsports, Inc. .... 360 572 Einstein Noah Restaurant Group, Inc.*............. 100 1,079 Gaylord Entertainment Co.*.. 970 13,522 Great Wolf Resorts, Inc.*... 640 2,362 Isle of Capri Casinos, Inc.*.................... 370 3,974 Jack in the Box, Inc.*...... 1,390 34,180 Krispy Kreme Doughnuts, Inc.*.................... 1,330 5,240 Landry's Restaurants, Inc.*.................... 280 2,559 Life Time Fitness, Inc.*.... 820 15,383 Lodgian, Inc.*.............. 380 977 Luby's, Inc.*............... 510 2,734 Marcus Corp. ............... 480 6,096 Monarch Casino & Resort, Inc.*.................... 270 2,759 Morgans Hotel Group Co.*.... 580 2,488 O'Charleys, Inc. ........... 430 2,997 P.F. Chang's China Bistro, Inc.*.................... 570 17,203 Papa John's International, Inc.*.................... 520 13,801 Peet's Coffee & Tea, Inc.*.. 310 8,457 Pinnacle Entertainment, Inc.*.................... 1,420 17,722 Red Robin Gourmet Burgers, Inc.*.................... 370 9,083 Rick's Cabaret International, Inc.*..... 160 954 Riviera Holdings Corp.*..... 240 362 Ruby Tuesday, Inc.*......... 1,220 9,370 Ruth's Hospitality Group Inc*..................... 480 1,738 Shuffle Master, Inc.*....... 1,250 4,762 Sonic Corp.*................ 1,420 15,506 Speedway Motorsports, Inc. .................... 320 4,800 Steak n Shake Co.(The)*..... 680 7,861 Texas Roadhouse, Inc. -- Class A*......... 1,170 13,315 Town Sports International Holdings, Inc.*.......... 350 1,207 Vail Resorts, Inc.*......... 700 20,440 Wendy's/Arby's Group, Inc. -- Class A.......... 9,378 46,890 WMS Industries, Inc.*....... 1,040 33,394 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 533,201 ----------- HOUSEHOLD DURABLES 0.9% American Greetings Corp. -- Class A......... 1,070 8,400 Beazer Homes USA, Inc.*..... 930 2,344 Blyth, Inc. ................ 140 6,171 Brookfield Homes Corp. ..... 220 1,155 Cavco Industries, Inc.*..... 150 3,516 Champion Enterprises, Inc.*.................... 1,840 1,067 CSS Industries, Inc. ....... 170 3,376 Ethan Allen Interiors, Inc. .................... 580 7,801 Furniture Brands International, Inc. ..... 980 3,097 Helen of Troy, Ltd.*........ 710 11,325 Hooker Furniture Corp. ..... 220 2,578 Hovnanian Enterprises, Inc. -- Class A*......... 1,100 3,047 iRobot Corp.*............... 420 4,817 La-Z-Boy, Inc. ............. 1,220 3,245 M/I Homes, Inc. ............ 330 5,039 Meritage Homes Corp.*....... 730 15,191 National Presto Industries, Inc. .................... 110 7,839 Palm Harbor Homes, Inc.*.... 230 699 Russ Berrie & Co., Inc.*.... 400 764 Ryland Group, Inc. ......... 1,000 20,710 Sealy Corp.*................ 1,050 3,717 Skyline Corp. .............. 160 3,317 Standard Pacific Corp.*..... 2,380 4,451 Tempur-Pedic International, Inc. .................... 1,770 22,762 Tupperware Brands Corp. .... 1,470 36,794 Universal Electronics, Inc.*.................... 330 6,184 ----------- TOTAL HOUSEHOLD DURABLES 189,406 ----------- HOUSEHOLD PRODUCTS 0.1% Central Garden & Pet Co. -- Class A*.......... 1,520 13,787 WD-40 Co. .................. 390 10,553 ----------- TOTAL HOUSEHOLD PRODUCTS 24,340 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2% Black Hills Corp. .......... 910 18,091 Ormat Technologies, Inc. ... 420 14,784 Synthesis Energy Systems, Inc.*.................... 600 444 U S Geothermal, Inc.*....... 1,470 1,279 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 34,598 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 39 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) INDUSTRIAL CONGLOMERATES 0.2% Otter Tail Corp. ........... 840 $18,631 Raven Industries, Inc. ..... 380 9,082 Seaboard Corp. ............. 10 9,350 Standex International Corp. ................... 300 4,161 Tredegar Corp. ............. 570 10,021 United Capital Corp.*....... 50 898 ----------- TOTAL INDUSTRIAL CONGLOMERATES 52,143 ----------- INSURANCE 3.1% Ambac Financial Group, Inc. .................... 6,789 6,178 American Equity Investment Life Holding Co. ........ 1,290 7,263 American Physicians Capital, Inc. .................... 180 7,499 American Safety Insurance Holdings Ltd.*........... 250 2,845 Amerisafe, Inc.*............ 450 6,912 Amtrust Financial Services, Inc. .................... 370 3,378 Argo Group International Holdings, Ltd.*.......... 730 20,433 Aspen Insurance Holdings, Ltd. .................... 2,020 47,632 Assured Guaranty, Ltd. ..... 1,320 12,751 Baldwin & Lyons, Inc. -- Class B.......... 200 4,010 Citizens, Inc.*............. 940 6,777 CNA Surety Corp.*........... 400 7,700 Crawford & Co. -- Class B*.. 570 3,391 Delphi Financial Group -- Class A......... 980 16,925 Donegal Group, Inc. -- Class A........................ 280 4,099 eHealth, Inc.*.............. 590 11,322 EMC Insurance Group, Inc. .. 140 3,172 Employers Holdings, Inc. ... 1,170 9,758 Enstar Group, Ltd.*......... 130 9,274 FBL Financial Group, Inc. -- Class A.......... 300 1,725 First Acceptance Corp.*..... 410 1,046 First Mercury Financial Corp.*................... 340 4,495 Flagstone Reinsurance Holdings, Ltd. .......... 710 6,575 Fpic Insurance Group, Inc.*.................... 180 5,497 Greenlight Capital Re, Ltd.*.................... 680 10,526 Hallmark Financial Services*................ 140 941 Harleysville Group, Inc. ... 310 8,965 Hilltop Holdings, Inc.*..... 1,070 12,123 Horace Mann Educators Corp. ................... 960 8,429 Independence Holding Co. ... 150 776 Infinity Property & Casualty Corp. ................... 340 11,982 IPC Holdings, Ltd. ......... 1,320 34,373 Kansas City Life Insurance Co. ..................... 110 2,423 Maiden Holdings Ltd. ....... 1,160 5,232 Max Capital Group, Ltd. .... 1,340 22,177 Meadowbrook Insurance Group, Inc. .................... 1,310 7,794 Montpelier Re Holdings, Ltd. .................... 2,210 27,537 National Financial Partners Corp. ................... 930 6,566 National Interstate Corp. .. 150 2,423 National Western Life Insurance Co. -- Class A........................ 50 5,694 Navigators Group, Inc.*..... 310 14,068 NYMAGIC, Inc. .............. 110 1,297 Odyssey Re Holdings Corp. .. 520 19,911 Phoenix Cos., Inc. ......... 2,709 4,226 Platinum Underwriters Holdings, Ltd. .......... 1,260 36,250 PMA Capital Corp. -- Class A*....................... 750 2,812 Presidential Life Corp. .... 510 5,452 ProAssurance Corp.*......... 760 33,394 RLI Corp. .................. 440 21,133 Safety Insurance Group, Inc. .................... 380 12,559 SeaBright Insurance Holdings, Inc.*.......... 500 4,640 Selective Insurance Group, Inc. .................... 1,260 18,598 State Auto Financial Corp. ................... 340 5,518 Stewart Information Services Corp. ................... 400 9,044 Tower Group, Inc. .......... 850 23,111 United America Indemnity, Ltd. -- Class A*......... 830 4,208 United Fire & Casualty Co. ..................... 540 10,082 Validus Holdings, Ltd. ..... 1,520 34,048 Zenith National Insurance Corp. ................... 880 20,055 ----------- TOTAL INSURANCE 659,024 ----------- INTERNET & CATALOG RETAIL 0.5% 1-800-FLOWERS.COM, Inc. -- Class A*......... 620 1,810 Bidz.com, Inc.*............. 140 577 Blue Nile, Inc.*............ 320 13,619 Drugstore.Com*.............. 1,980 3,069 Gaiam, Inc. -- Class A*..... 430 2,503 NetFlix, Inc.*.............. 950 43,044 NutriSystem, Inc. .......... 720 9,893 Orbitz Worldwide, Inc.*..... 870 1,653 Overstock.com, Inc.*........ 360 4,853 PetMed Express, Inc.*....... 560 9,105 Shutterfly, Inc.*........... 470 6,021 Stamps.com, Inc.*........... 300 2,808 ----------- TOTAL INTERNET & CATALOG RETAIL 98,955 ----------- INTERNET SOFTWARE & SERVICES 1.9% Art Technology Group, Inc.*.................... 3,049 9,574 AsiaInfo Holdings, Inc.*.... 820 13,735 Bankrate, Inc.*............. 300 7,500 Chordiant Software, Inc.*... 710 2,272 comScore, Inc.*............. 430 5,487 Constant Contact, Inc.*..... 480 7,646 DealerTrack Holdings, Inc.*.................... 940 14,269 Dice Holdings, Inc.*........ 370 1,458 Digital River, Inc.*........ 880 33,810 DivX, Inc.*................. 640 3,283 EarthLink, Inc.*............ 2,600 19,708 GSI Commerce, Inc.*......... 560 7,958 HSW International, Inc.*.... 660 152 InfoSpace, Inc.*............ 810 5,370 Internap Network Services Corp.*................... 1,190 3,308 Internet Brands, Inc. -- Class A*......... 520 3,188 Internet Capital Group, Inc.*.................... 870 4,724 j2 Global Communications, Inc.*.................... 1,050 25,189 Keynote Systems, Inc.*...... 330 2,544 Knot, Inc.(The)*............ 700 6,349 Limelight Networks, Inc.*... 680 3,332 Liquidity Services, Inc.*... 350 2,636 LoopNet, Inc.*.............. 690 5,927 Marchex, Inc. -- Class B.... 500 2,260 MercadoLibre, Inc.*......... 600 16,398 ModusLink Global Solutions, Inc.*.................... 1,090 4,033 Move, Inc.*................. 3,039 6,230 NIC, Inc. .................. 940 5,076 Omniture, Inc.*............. 1,560 19,219 Perficient, Inc.*........... 760 5,297 Rackspace Hosting, Inc.*.... 410 3,768 RealNetworks, Inc.*......... 2,030 4,994 S1 Corp.*................... 1,110 6,882 SAVVIS, Inc.*............... 890 10,128 SonicWALL, Inc.*............ 1,260 6,842 SupportSoft, Inc.*.......... 1,100 2,475 Switch & Data Facilities Co., Inc.*............... 490 5,669 TechTarget, Inc.*........... 330 1,323
See Notes to Financial Statements. 40 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Terremark Worldwide, Inc.*.. 1,250 $4,863 TheStreet.com, Inc. ........ 430 916 United Online, Inc. ........ 1,820 9,646 ValueClick, Inc.*........... 2,050 21,730 Vignette Corp.*............. 580 4,791 VistaPrint, Ltd.*........... 1,040 35,724 Vocus, Inc.*................ 380 6,460 Web.com Group, Inc.*........ 650 2,704 Websense, Inc.*............. 1,070 19,078 ----------- TOTAL INTERNET SOFTWARE & SERVICES 395,925 ----------- IT SERVICES 1.6% Acxiom Corp. ............... 1,450 13,992 CACI International, Inc. -- Class A*......... 710 28,080 Cass Information Systems, Inc. .................... 160 5,397 China Information Security Technology, Inc*......... 540 1,642 Ciber, Inc.*................ 1,440 4,651 CSG Systems International, Inc.*.................... 830 12,035 Cybersource Corp.*.......... 1,630 23,814 Euronet Worldwide, Inc.*.... 1,120 18,122 ExlService Holdings, Inc.*.. 340 3,165 Forrester Research, Inc.*... 370 9,402 Gartner, Inc.*.............. 1,400 18,914 Gevity HR, Inc. ............ 580 2,297 Global Cash Access Holdings, Inc.*.................... 950 5,766 Hackett Group Inc (The)*.... 970 2,183 Heartland Payment Systems, Inc. .................... 580 4,663 iGate Corp. ................ 520 1,971 infoGROUP, Inc.*............ 780 3,159 Integral Systems, Inc.*..... 400 2,652 Mantech International Corp. -- Class A*........ 490 17,733 MAXIMUS, Inc. .............. 420 16,939 NCI, Inc. -- Class A*....... 150 3,654 Ness Technologies, Inc.*.... 930 3,432 Online Resources Corp.*..... 680 2,917 Perot Systems Corp. -- Class A*....................... 2,050 28,823 RightNow Technologies, Inc.*.................... 620 4,681 Safeguard Scientifics, Inc.*.................... 2,879 2,620 Sapient Corp.*.............. 2,080 10,670 SRA International, Inc. -- Class A*......... 1,010 15,544 Syntel, Inc. ............... 310 8,593 TeleTech Holdings, Inc.*.... 860 11,412 TNS, Inc.*.................. 580 9,773 VeriFone Holdings, Inc.*.... 1,620 12,166 Virtusa Corp.*.............. 210 1,342 Wright Express Corp.*....... 920 21,050 ----------- TOTAL IT SERVICES 333,254 ----------- LEISURE EQUIPMENT & PRODUCTS 0.5% Brunswick Corp. ............ 2,070 12,379 Callaway Golf Co. .......... 1,570 11,853 JAKKS Pacific, Inc.*........ 650 8,223 Leapfrog Enterprises, Inc.*.................... 780 1,396 Marine Products Corp. ...... 240 1,116 Nautilus, Inc.*............. 540 540 Polaris Industries, Inc. ... 780 26,091 Pool Corp. ................. 1,130 20,182 RC2 Corp.*.................. 410 4,637 Smith & Wesson Holding Corp.*................... 890 6,381 Steinway Musical Instruments*............. 160 2,149 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 94,947 ----------- LIFE SCIENCES TOOLS & SERVICES 1.0% Accelrys, Inc.*............. 630 2,835 Affymetrix, Inc.*........... 1,640 7,692 Albany Molecular Research, Inc.*.................... 550 5,368 AMAG Pharmaceuticals, Inc.*.................... 400 17,940 Bio-Rad Laboratories, Inc. -- Class A*......... 450 31,360 Bruker Corp.*............... 1,190 7,830 Caliper Life Sciences, Inc.*.................... 1,130 1,627 Cambrex Corp.*.............. 690 1,608 Clinical Data, Inc.*........ 270 3,459 Dionex Corp.*............... 430 27,090 Enzo Biochem, Inc.*......... 760 3,116 eResearchTechnology, Inc.*.. 1,020 5,171 Exelixis, Inc.*............. 2,490 12,276 Kendle International, Inc.*.................... 310 2,759 Life Sciences Research, Inc.*.................... 220 1,487 Luminex Corp.*.............. 980 16,082 Nektar Therapeutics*........ 2,190 12,264 Parexel International Corp.*................... 1,340 13,279 Sequenom, Inc.*............. 1,440 5,213 Varian, Inc.*............... 700 23,114 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 201,570 ----------- MACHINERY 2.5% 3D Systems Corp.*........... 420 2,944 Actuant Corp. -- Class A.... 1,320 16,183 Alamo Group, Inc. .......... 150 1,689 Albany International Corp. -- Class A......... 700 6,496 Altra Holdings, Inc.*....... 620 3,391 American Railcar Industries, Inc. .................... 220 2,006 Ampco-Pittsburgh Corp. ..... 200 4,872 Astec Industries, Inc.*..... 430 13,253 Badger Meter, Inc. ......... 350 13,636 Barnes Group, Inc. ......... 1,130 16,001 Blount International, Inc.*.................... 900 5,760 Briggs & Stratton Corp. .... 1,170 17,410 Cascade Corp. .............. 210 5,076 Chart Industries, Inc.*..... 670 9,266 China Fire & Security Group, Inc.*.................... 330 3,633 CIRCOR International, Inc. .................... 400 10,292 CLARCOR, Inc. .............. 1,190 36,985 Colfax Corp.*............... 510 4,401 Columbus McKinnon Corp.*.... 450 5,832 Commercial Vehicle Group, Inc.*.................... 510 490 Dynamic Materials Corp. .... 300 4,812 Energy Recovery, Inc.*...... 350 2,758 EnPro Industries, Inc.*..... 480 7,661 ESCO Technologies, Inc.*.... 610 25,364 Federal Signal Corp. ....... 1,140 8,858 Flanders Corp.*............. 380 2,018 Flow International Corp.*... 890 1,620 Force Protection, Inc.*..... 1,620 12,344 FreightCar America, Inc. ... 280 5,384 Gorman-Rupp Co. ............ 340 7,242 Graham Corp. ............... 230 2,875 Greenbrier Cos., Inc. ...... 390 3,319 Hurco Cos., Inc.*........... 150 2,300 K-Tron International, Inc.*.................... 60 4,825 Kadant, Inc.*............... 310 3,825 Kaydon Corp. ............... 810 25,888 Key Technology, Inc.*....... 120 1,265 LB Foster Co. -- Class A*... 240 7,860 Lindsay Corp. .............. 280 10,895 Lydall, Inc.*............... 390 1,673 Met-Pro Corp. .............. 360 3,668
See Notes to Financial Statements. SEMI-ANNUAL REPORT 41 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Middleby Corp.*............. 430 $18,821 Mueller Industries, Inc. ... 880 19,334 Mueller Water Products, Inc. -- Class A.......... 2,720 11,397 NACCO Industries, Inc. -- Class A.......... 140 5,355 NN, Inc. ................... 380 498 Nordson Corp. .............. 800 29,024 Omega Flex, Inc. ........... 70 1,082 PMFG, Inc.*................. 310 1,866 RBC Bearings, Inc.*......... 520 9,620 Robbins & Myers, Inc. ...... 660 12,507 Sauer-Danfoss, Inc. ........ 260 1,079 Sun Hydraulics Corp. ....... 280 5,068 Tecumseh Products Co. -- Class A*.......... 390 3,982 Tennant Co. ................ 390 5,799 Thermadyne Holdings Corp.*.. 320 1,024 Titan International, Inc. .. 810 4,900 Trimas Corp.*............... 350 875 Twin Disc, Inc. ............ 210 1,432 Wabash National Corp. ...... 730 913 Wabtec Corp. ............... 1,150 43,861 Watts Water Technologies, Inc. -- Class A.......... 690 15,359 Xerium Technologies, Inc.*.. 490 407 ----------- TOTAL MACHINERY 520,273 ----------- MARINE 0.2% American Commercial Lines, Inc.*.................... 850 4,233 Eagle Bulk Shipping, Inc. .. 1,110 7,237 Genco Shipping & Trading, Ltd. .................... 570 10,887 Horizon Lines, Inc. -- Class A........................ 710 3,777 International Shipholding Corp. ................... 130 2,730 TBS International, Ltd.*.... 250 1,983 Ultrapetrol Bahamas, Ltd.*.. 550 2,046 ----------- TOTAL MARINE 32,893 ----------- MEDIA 0.9% AH Belo Corp. -- Class A.... 480 912 Arbitron, Inc. ............. 650 13,533 Belo Corp. -- Class A....... 2,110 3,587 Cinemark Holdings, Inc. .... 710 6,319 CKX, Inc.*.................. 1,250 6,737 Cox Radio, Inc. -- Class A*....................... 560 2,688 Crown Media Holdings, Inc. -- Class A*......... 260 803 Cumulus Media, Inc. -- Class A*....................... 590 726 Dolan Media Co.*............ 600 7,146 Entercom Communications Corp. -- Class A......... 610 1,013 Entravision Communications Corp. -- Class A*........ 1,330 678 Fisher Communications, Inc. .................... 160 1,930 Global Sources, Ltd.*....... 380 1,691 Global Traffic Network, Inc.*.................... 280 1,344 Gray Television, Inc. ...... 1,010 687 Harte-Hanks, Inc. .......... 870 7,186 Interactive Data Corp. ..... 870 19,558 Journal Communications, Inc. -- Class A.......... 1,000 1,550 Knology, Inc.*.............. 670 4,757 Lee Enterprises, Inc. ...... 1,060 403 LIN TV Corp. -- Class A*.... 630 1,008 Live Nation, Inc.*.......... 1,790 6,999 Martha Stewart Living Omnimedia, Inc. -- Class A*....................... 600 2,172 Marvel Entertainment, Inc.*.................... 1,160 34,614 McClatchy Co. -- Class A.... 1,350 715 Media General, Inc. -- Class A........................ 540 1,404 Mediacom Communications Corp. -- Class A*........ 930 5,292 National CineMedia, Inc. ... 1,000 14,530 Outdoor Channel Holdings, Inc.*.................... 350 2,618 Playboy Enterprises, Inc. -- Class B*......... 500 1,505 Primedia, Inc. ............. 600 2,340 RCN Corp.*.................. 890 3,649 RHI Entertainment, Inc.*.... 320 1,034 Scholastic Corp. ........... 570 11,246 Sinclair Broadcast Group, Inc. -- Class A.......... 1,150 1,276 Valassis Communications, Inc.*.................... 1,140 5,894 Value Line, Inc. ........... 30 841 World Wrestling Entertainment, Inc. -- Class A.......... 500 5,350 ----------- TOTAL MEDIA 185,735 ----------- METALS & MINING 0.9% Allied Nevada Gold Corp.*... 1,070 5,778 AM Castle & Co. ............ 390 3,779 AMCOL International Corp. .. 650 12,597 Brush Engineered Materials, Inc.*.................... 480 8,122 China Direct, Inc.*......... 160 192 China Precision Stl, Inc.*.. 410 640 Coeur d'Alene Mines Corp.*.. 14,447 19,937 Compass Minerals International, Inc. ..... 770 37,130 General Moly, Inc.*......... 1,480 2,250 General Stl Hldgs, Inc.*.... 250 1,455 Haynes International, Inc.*.................... 280 6,322 Hecla Mining Co.*........... 5,139 12,693 Horsehead Holding Corp.*.... 830 5,926 Kaiser Aluminum Corp. ...... 370 10,930 Olympic Steel, Inc. ........ 210 3,851 Royal Gold, Inc. ........... 690 24,950 RTI International Metals, Inc.*.................... 540 7,025 Stillwater Mining Co.*...... 940 4,239 Sutor Technology Group Ltd.*.................... 180 405 Universal Stainless & Alloy*................... 160 2,144 Worthington Industries, Inc. .................... 1,520 22,648 ----------- TOTAL METALS & MINING 193,013 ----------- MULTI-UTILITIES 0.3% Avista Corp. ............... 1,260 18,963 CH Energy Group, Inc. ...... 370 16,443 PNM Resources, Inc. ........ 2,040 17,381 ----------- TOTAL MULTI-UTILITIES....... 52,787 ----------- MULTILINE RETAIL 0.2% 99 Cents Only Stores*....... 1,110 11,921 Dillard's, Inc. -- Class A.. 1,350 10,409 Fred's, Inc. -- Class A..... 940 12,841 Retail Ventures, Inc.*...... 680 1,768 Tuesday Morning Corp.*...... 720 2,455 ----------- TOTAL MULTILINE RETAIL 39,394 ----------- OIL, GAS & CONSUMABLE FUELS 2.6% Abraxas Petroleum Corp.*.... 990 871 Alon USA Energy, Inc. ...... 260 3,302 American Oil & Gas, Inc.*... 870 583 APCO Argentina, Inc. ....... 90 1,716 Approach Resources, Inc.*... 210 1,491 Arena Resources, Inc.*...... 900 25,803 Atlas America, Inc. ........ 820 12,759 ATP Oil & Gas Corp.*........ 660 4,726
See Notes to Financial Statements. 42 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Berry Petroleum Co. -- Class A........................ 1,010 $16,645 Bill Barrett Corp.*......... 870 22,603 BMB Munai, Inc.*............ 950 760 BPZ Resources, Inc.*........ 1,690 9,210 Brigham Exploration Co.*.... 1,090 2,551 Callon Petroleum Co.*....... 500 880 Cano Petroleum, Inc.*....... 1,120 717 Carrizo Oil & Gas, Inc.*.... 650 8,014 Cheniere Energy, Inc.*...... 1,240 4,886 Clayton Williams Energy, Inc.*.................... 130 3,904 Clean Energy Fuels Corp.*... 580 4,907 Comstock Resources, Inc.*... 1,080 37,217 Concho Resources, Inc.*..... 1,310 35,920 Contango Oil & Gas Co.*..... 310 11,746 Crosstex Energy, Inc. ...... 950 1,872 CVR Energy, Inc.*........... 540 3,974 Delek US Holdings, Inc. .... 310 3,184 Delta Petroleum Corp.*...... 1,470 4,322 Dht Maritime, Inc. ......... 930 3,915 Double Eagle Petroleum Co.*..................... 190 866 Endeavour International Corp.*................... 2,690 4,277 Energy XXI Bermuda Limtited................. 2,839 1,476 Evergreen Energy, Inc.*..... 2,919 3,214 EXCO Resources, Inc.*....... 3,529 41,572 FX Energy, Inc.*............ 1,000 3,760 Gasco Energy, Inc.*......... 2,220 1,110 General Maritime Corp. ..... 1,150 11,419 GeoGlobal Resources, Inc.*.. 900 1,269 GeoMet, Inc.*............... 440 414 Georesources, Inc.*......... 140 994 GMX Resources, Inc.*........ 400 4,376 Golar LNG, Ltd. ............ 840 4,528 Goodrich Petroleum Corp.*... 530 12,153 Gran Tierra Energy, Inc.*... 5,229 12,968 GreenHunter Energy, Inc.*... 110 165 Gulfport Energy Corp.*...... 620 1,841 Harvest Natural Resources, Inc.*.................... 780 3,978 Houston American Energy Corp. ................... 350 721 International Coal Group, Inc.*.................... 3,009 5,988 James River Coal Co.*....... 650 9,256 Knightsbridge Tankers, Ltd. .................... 400 5,292 McMoRan Exploration Co.*.... 1,420 7,796 Meridian Resource Corp.*.... 1,840 497 National Coal Corp.*........ 650 800 Nordic American Tanker Shipping, Ltd. .......... 900 29,223 Northern Oil And Gas, Inc.*.................... 500 2,855 Oilsands Quest, Inc.*....... 4,399 3,299 Pacific Ethanol, Inc.*...... 1,050 389 Panhandle Oil and Gas, Inc. -- Class A.......... 170 2,915 Parallel Petroleum Corp.*... 980 1,303 Penn Virginia Corp. ........ 980 13,789 Petroleum Development Corp.*................... 350 5,673 Petroquest Energy, Inc.*.... 1,030 3,100 PrimeEnergy Corp.*.......... 20 850 Quest Resource Corp.*....... 650 286 RAM Energy Resources, Inc.*.................... 1,100 825 Rentech, Inc.*.............. 3,919 2,312 Rex Energy Corp.*........... 400 1,524 Rosetta Resources, Inc.*.... 1,220 8,601 Ship Finance International, Ltd. .................... 1,000 8,630 Stone Energy Corp.*......... 750 3,232 Swift Energy Co.*........... 720 7,790 Teekay Tankers Ltd. ........ 320 3,859 Toreador Resources Corp. ... 400 1,480 Tri-Valley Corp.*........... 530 663 TXCO Resources, Inc.*....... 920 432 Uranium Resources, Inc.*.... 1,160 1,705 USEC, Inc.*................. 2,630 16,280 Vaalco Energy, Inc.*........ 1,400 6,678 Venoco, Inc.*............... 480 2,098 Warren Resources, Inc.*..... 1,380 2,208 Western Refining, Inc.*..... 710 8,939 Westmoreland Coal Co.*...... 220 1,870 World Fuel Services Corp. .. 680 25,928 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 537,944 ----------- PAPER & FOREST PRODUCTS 0.3% Buckeye Technologies, Inc.*.................... 930 4,789 Clearwater Paper Corp.*..... 270 4,109 Deltic Timber Corp. ........ 250 10,535 Glatfelter.................. 1,070 9,502 Kapstone Paper and Packaging Corp.*................... 420 1,197 Louisiana-Pacific Corp. .... 2,440 9,931 Mercer International, Inc.*.................... 710 405 Neenah Paper, Inc. ......... 350 1,753 Schweitzer-Mauduit International, Inc. ..... 370 8,499 Verso Paper Corp. .......... 330 347 Wausau Paper Corp. ......... 1,040 9,079 ----------- TOTAL PAPER & FOREST PRODUCTS 60,146 ----------- PERSONAL PRODUCTS 0.3% American Oriental Bioengineering, Inc.*.... 1,460 6,190 Chattem, Inc.*.............. 410 22,513 China Sky One Med, Inc.*.... 190 2,681 Elizabeth Arden, Inc.*...... 580 5,023 Inter Parfums, Inc. ........ 330 2,561 Mannatech, Inc. ............ 370 1,617 Nu Skin Enterprises, Inc. -- Class A.......... 1,170 14,999 Prestige Brands Holdings, Inc.*.................... 800 5,168 Schiff Nutrition International, Inc.*..... 220 1,056 USANA Health Sciences, Inc.*.................... 160 3,826 ----------- TOTAL PERSONAL PRODUCTS 65,634 ----------- PHARMACEUTICALS 1.0% Acura Pharmaceuticals, Inc.*.................... 190 1,319 Adolor Corp.*............... 1,090 2,452 Akorn, Inc.*................ 1,350 1,134 Alexza Pharmaceuticals, Inc.*.................... 560 930 Ardea Biosciences, Inc.*.... 340 4,196 Auxilium Pharmaceuticals, Inc.*.................... 970 22,213 Biodel, Inc.*............... 250 1,200 BioForm Medical, Inc.*...... 520 582 BioMimetic Therapeutics, Inc.*.................... 310 2,669 Cadence Pharmaceuticals, Inc.*.................... 630 6,376 Caraco Pharmaceutical Laboratories, Ltd.*...... 280 1,254 Columbia Laboratories, Inc.*.................... 1,110 1,543 Cypress Bioscience, Inc.*... 890 6,408 Depomed, Inc.*.............. 1,210 2,517 Discovery Laboratories, Inc.*.................... 2,430 2,114 Durect Corp.*............... 1,940 4,734 Inspire Pharmaceuticals, Inc.*.................... 1,000 4,490 Javelin Pharmaceuticals, Inc.*.................... 1,160 1,554 Jazz Pharmaceuticals, Inc.*.................... 180 99 KV Pharmaceutical Co. -- Class A*.......... 780 1,092 MAP Pharmaceuticals, Inc.*.. 180 508 Medicines Co.(The)*......... 1,230 12,275 Medicis Pharmaceutical Corp. -- Class A......... 1,340 21,534 MiddleBrook Pharmaceuticals, Inc.*.................... 850 1,198
See Notes to Financial Statements. SEMI-ANNUAL REPORT 43 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Noven Pharmaceuticals, Inc.*.................... 590 $6,089 Obagi Medical Products, Inc.*.................... 420 2,524 Optimer Pharmaceuticals, Inc.*.................... 680 9,500 Pain Therapeutics, Inc.*.... 810 3,839 Par Pharmaceutical Cos., Inc.*.................... 820 8,799 Pozen, Inc.*................ 620 4,749 Questcor Pharmaceuticals, Inc.*.................... 1,200 5,400 Salix Pharmaceuticals Ltd.*.................... 1,130 12,430 Sucampo Pharmaceuticals, Inc. -- Class A*......... 220 1,430 Valeant Pharmaceuticals International*........... 1,510 25,307 Viropharma, Inc.*........... 1,860 10,472 Vivus, Inc.*................ 1,630 6,536 XenoPort, Inc.*............. 640 8,749 ----------- TOTAL PHARMACEUTICALS 210,215 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 4.6% Acadia Realty Trust......... 800 11,600 Agree Realty Corp. ......... 180 2,873 Alexander's, Inc. .......... 50 10,904 American Campus Communities, Inc. .................... 1,000 21,680 American Capital Agency Corp. ................... 240 4,500 Anthracite Capital, Inc. ... 1,390 556 Anworth Mortgage Asset Corp. ................... 2,350 15,110 Arbor Realty Trust, Inc. ... 340 955 Ashford Hospitality Trust, Inc. .................... 1,880 5,678 Associated Estates Realty Corp. ................... 340 1,887 BioMed Realty Trust, Inc. .. 1,900 21,679 Capital Trust, Inc. -- Class A........................ 390 663 CapLease, Inc. ............. 1,060 3,148 Capstead Mortgage Corp. .... 1,490 16,971 Care Investment Trust, Inc. .................... 310 1,581 Cedar Shopping Centers, Inc. .................... 910 3,267 Chimera Investment Corp. ... 3,219 11,363 Cogdell Spencer, Inc. ...... 280 1,736 Colonial Properties Trust... 1,120 8,109 Corporate Office Properties Trust.................... 990 30,254 Cousins Properties, Inc. ... 1,030 8,704 DCT Industrial Trust, Inc. .................... 4,059 17,941 DiamondRock Hospitality Co. ..................... 2,240 14,538 DuPont Fabros Technology, Inc. .................... 310 2,632 EastGroup Properties, Inc. .................... 590 19,830 Education Realty Trust, Inc. .................... 670 3,142 Entertainment Properties Trust.................... 820 18,950 Equity Lifestyle Properties, Inc. .................... 480 19,042 Equity One, Inc. ........... 760 11,309 Extra Space Storage, Inc. .. 2,020 14,362 FelCor Lodging Trust, Inc. .................... 1,490 2,950 First Industrial Realty Trust, Inc. ............. 1,050 3,959 First Potomac Realty Trust.. 650 6,364 Franklin Street Properties Corp. ................... 1,400 18,690 Friedman, Billings, Ramsey Group, Inc. -- Class A*.. 3,499 945 Getty Realty Corp. ......... 410 8,044 Glimcher Realty Trust....... 890 2,181 Gramercy Capital Corp. ..... 990 2,138 Hatteras Financial Corp. ... 370 8,906 Healthcare Realty Trust, Inc. .................... 1,390 23,338 Hersha Hospitality Trust.... 1,140 4,161 Highwoods Properties, Inc. .................... 1,500 35,985 Home Properties, Inc. ...... 750 27,330 Inland Real Estate Corp. ... 1,360 11,941 Investors Real Estate Trust.................... 1,360 12,580 Kite Realty Group Trust..... 560 1,960 LaSalle Hotel Properties.... 950 11,362 Lexington Realty Trust...... 2,000 7,700 LTC Properties, Inc. ....... 550 9,905 Maguire Properties, Inc.*... 900 981 Medical Properties Trust, Inc. .................... 1,890 10,093 MFA Mortgage Investments, Inc. .................... 5,269 31,034 Mid-America Apartment Communities, Inc. ....... 670 24,783 Mission West Properties..... 470 3,201 Monmouth Real Estate Investment Corp. -- Class A........................ 470 2,876 National Health Investors, Inc. .................... 530 14,215 National Retail Properties, Inc. .................... 1,850 32,819 Newcastle Investment Corp. ................... 1,250 775 NorthStar Realty Finance Corp. ................... 1,320 4,184 Omega Healthcare Investors, Inc. .................... 1,940 30,497 One Liberty Properties, Inc. .................... 200 817 Parkway Properties, Inc. ... 360 4,993 Pennsylvania Real Estate Investment Trust......... 830 6,433 Post Properties, Inc. ...... 1,040 13,270 Potlatch Corp. ............. 930 27,351 PS Business Parks, Inc. .... 360 15,750 RAIT Financial Trust........ 1,470 2,176 Ramco-Gershenson Properties............... 370 4,070 Realty Income Corp. ........ 2,400 53,592 Redwood Trust, Inc. ........ 1,420 23,103 Resource Capital Corp. ..... 500 1,575 Saul Centers, Inc. ......... 220 7,005 Senior Housing Properties Trust.................... 2,849 46,695 Sovran Self Storage, Inc. .. 520 11,721 Strategic Hotels & Resorts, Inc. .................... 1,760 1,478 Sun Communities, Inc. ...... 390 5,714 Sunstone Hotel Investors, Inc. .................... 1,280 6,771 Tanger Factory Outlet Centers.................. 750 24,990 U-Store-It Trust............ 1,170 4,013 Universal Health Realty Income Trust............. 280 8,966 Urstadt Biddle Properties, Inc -- Class A........... 490 7,526 Washington Real Estate Investment Trust......... 1,240 26,449 Winthrop Realty Trust....... 260 2,288 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 967,607 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1% Avatar Holdings, Inc.*...... 140 2,601 Consolidated-Tomoka Land Co. ..................... 130 4,523 Forestar Real Estate Group, Inc.*.................... 840 10,802 FX Real Estate and Entertainment, Inc.*..... 240 29 Grubb & Ellis Co. .......... 820 763 Maui Land & Pineapple Co., Inc.*.................... 110 698 Stratus Properties, Inc.*... 150 1,354 Tejon Ranch Co.*............ 260 6,032 Thomas Properties Group, Inc. .................... 560 1,126 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 27,928 ----------- ROAD & RAIL 0.7% Amerco, Inc.*............... 220 7,139 Arkansas Best Corp. ........ 540 12,463 Celadon Group, Inc.*........ 520 3,557 Dollar Thrifty Automotive Group*................... 510 1,918 Genesee & Wyoming, Inc. -- Class A*......... 730 21,900 Greenhunter Energy, Inc. ... 3 -- Heartland Express, Inc. .... 1,250 18,687 Knight Transportation, Inc. .................... 1,350 23,868 Marten Transport, Ltd.*..... 360 7,466 Old Dominion Freight Line, Inc.*.................... 650 18,297
See Notes to Financial Statements. 44 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Patriot Transportation Holding, Inc.*........... 40 $2,762 Saia, Inc.*................. 320 4,179 Universal Truckload Services, Inc. .......... 140 1,725 Werner Enterprises, Inc. ... 1,010 16,514 YRC Worldwide, Inc.*........ 1,350 4,091 ----------- TOTAL ROAD & RAIL 144,566 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.8% Actel Corp.*................ 600 7,422 Advanced Analogic Technologies, Inc.*...... 1,020 4,896 Advanced Energy Industries, Inc.*.................... 780 6,575 Amkor Technology, Inc.*..... 2,580 11,120 Anadigics, Inc.*............ 1,480 4,470 Applied Micro Circuits Corp.*................... 1,530 8,338 Atheros Communications, Inc.*.................... 1,400 24,108 ATMI, Inc.*................. 760 12,000 AuthenTec, Inc.*............ 590 1,097 Axcelis Technologies, Inc.*.................... 2,420 1,137 Brooks Automation, Inc.*.... 1,500 9,330 Cabot Microelectronics Corp.*................... 560 16,134 Cavium Networks, Inc.*...... 720 9,058 Ceva, Inc.*................. 480 3,960 Cirrus Logic, Inc.*......... 1,540 7,161 Cohu, Inc. ................. 550 5,368 Cymer, Inc.*................ 720 20,455 Diodes, Inc.*............... 680 10,118 DSP Group, Inc.*............ 550 3,459 Emcore Corp.*............... 1,740 2,158 Entegris, Inc.*............. 2,700 3,996 Entropic Communications, Inc.*.................... 220 403 Exar Corp.*................. 880 5,412 FEI Co.*.................... 860 14,775 Formfactor, Inc.*........... 1,160 20,219 Hittite Microwave Corp.*.... 460 17,094 IXYS Corp. ................. 570 5,438 Kopin Corp.*................ 1,630 4,482 Kulicke & Soffa Industries, Inc.*.................... 1,440 5,760 Lattice Semiconductor Corp.*................... 2,729 4,748 LTX -- Credence Corp.*...... 2,959 1,450 Mattson Technology, Inc.*... 1,170 1,346 Micrel, Inc. ............... 1,080 8,100 Microsemi Corp.*............ 1,960 26,303 Microtune, Inc.*............ 1,280 2,675 MIPS Technologies, Inc.*.... 1,050 3,486 MKS Instruments, Inc.*...... 1,180 18,467 Monolithic Power Systems, Inc.*.................... 620 11,470 Netlogic Microsystems, Inc.*.................... 400 13,036 NVE Corp.*.................. 110 4,184 OmniVision Technologies, Inc.*.................... 1,210 11,507 Pericom Semiconductor Corp.*................... 520 4,633 Photronics, Inc.*........... 990 1,653 PLX Technology, Inc.*....... 800 2,712 PMC -- Sierra, Inc.*........ 5,179 41,018 Power Integrations, Inc. ... 650 13,845 RF Micro Devices, Inc.*..... 6,229 13,143 Rubicon Technology, Inc.*... 310 2,629 Rudolph Technologies, Inc.*.................... 720 3,766 Semitool, Inc.*............. 530 2,518 Semtech Corp.*.............. 1,460 21,053 Sigma Designs, Inc.*........ 630 8,140 Silicon Image, Inc.*........ 1,730 4,706 Silicon Storage Technology, Inc.*.................... 1,850 3,422 Sirf Technology Holdings, Inc.*.................... 1,440 4,003 Skyworks Solutions, Inc.*... 3,859 34,114 Spansion, Inc. -- Class A*.. 3,019 483 Standard Microsystems Corp.*................... 530 8,406 Supertex, Inc.*............. 260 6,687 Techwell, Inc.*............. 360 2,653 Tessera Technologies, Inc.*.................... 1,140 16,006 Trident Microsystems, Inc.*.................... 1,440 1,973 TriQuint Semiconductor, Inc.*.................... 3,389 12,980 Ultra Clean Holdings*....... 460 837 Ultratech, Inc.*............ 550 7,436 Veeco Instruments, Inc.*.... 750 5,430 Volterra Semiconductor Corp.*................... 540 6,205 Zoran Corp.*................ 1,230 10,996 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 594,162 ----------- SOFTWARE 3.9% ACI Worldwide, Inc.*........ 810 13,989 Actuate Corp.*.............. 1,060 3,922 Advent Software, Inc.*...... 370 12,299 American Software, Inc. -- Class A.......... 530 2,942 ArcSight, Inc.*............. 160 2,416 Ariba, Inc.*................ 2,020 19,412 Blackbaud, Inc. ............ 1,060 16,133 Blackboard, Inc.*........... 730 24,842 Bottomline Technologies, Inc.*.................... 520 4,082 Callidus Software, Inc.*.... 710 2,293 Commvault Systems, Inc.*.... 1,010 12,574 Concur Technologies, Inc.*.. 1,020 27,611 Deltek, Inc.*............... 300 1,236 DemandTec, Inc.*............ 490 3,538 Digimarc Corp.*............. 160 1,594 Double-Take Software, Inc.*.................... 410 3,329 Ebix, Inc.*................. 150 4,170 Entrust, Inc.*.............. 1,450 2,828 Epicor Software Corp.*...... 1,400 7,728 EPIQ Systems, Inc.*......... 840 12,995 Fair Isaac Corp. ........... 1,150 19,343 FalconStor Software, Inc.*.. 840 3,108 Guidance Software, Inc.*.... 220 810 i2 Technologies, Inc.*...... 370 3,300 Informatica Corp.*.......... 2,090 33,231 Interactive Intelligence, Inc.*.................... 310 3,410 Jack Henry & Associates, Inc. .................... 1,770 31,895 JDA Software Group, Inc.*... 610 8,607 Kenexa Corp.*............... 530 3,477 Lawson Software, Inc.*...... 2,789 15,033 Macrovision Solutions Corp.*................... 1,950 39,429 Magma Design Automation, Inc.*.................... 1,110 1,976 Manhattan Associates, Inc.*.................... 580 9,640 Mentor Graphics Corp.*...... 2,150 14,448 MICROS Systems, Inc.*....... 1,930 40,491 MicroStrategy, Inc. -- Class A*....................... 210 8,171 Monotype Imaging Holdings, Inc.*.................... 360 1,336 MSC.Software Corp.*......... 1,060 6,508 Net 1 UEPS Technologies, Inc.*.................... 1,180 19,470 Netscout Systems, Inc.*..... 700 6,293 NetSuite, Inc.*............. 170 2,378 OpenTV Corp. -- Class A*.... 2,060 3,028 Opnet Technologies, Inc.*... 310 2,666 Parametric Technology Corp.*................... 2,729 30,428 Pegasystems, Inc. .......... 340 5,940 Phoenix Technologies Ltd.*.. 690 1,967 Progress Software Corp.*.... 980 20,766 PROS Holdings, Inc.*........ 300 1,938 QAD, Inc. .................. 290 771
See Notes to Financial Statements. SEMI-ANNUAL REPORT 45 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Quality Systems, Inc. ...... 410 $21,984 Quest Software, Inc.*....... 1,560 22,667 Radiant Systems, Inc.*...... 650 4,791 Renaissance Learning, Inc. .................... 230 2,208 Smith Micro Software, Inc.*.................... 720 6,192 Solera Holdings, Inc.*...... 1,310 29,894 Sonic Solutions, Inc.*...... 520 1,144 Sourcefire, Inc.*........... 470 5,090 SPSS, Inc.*................. 420 12,978 SuccessFactors, Inc.*....... 580 5,052 Sybase, Inc.*............... 1,880 63,845 Symyx Technologies*......... 800 3,872 Synchronoss Technologies, Inc.*.................... 490 6,507 Take-Two Interactive Software, Inc. .......... 1,820 16,526 Taleo Corp. Class A*........ 620 7,446 TeleCommunication Systems, Inc. -- Class A*......... 850 8,338 THQ, Inc.*.................. 1,580 5,404 TIBCO Software, Inc.*....... 4,139 26,158 Tivo, Inc.*................. 2,410 18,075 Tyler Technologies, Inc.*... 840 13,860 Ultimate Software Group, Inc.*.................... 580 10,863 Unica Corp.*................ 330 1,581 Vasco Data Security International, Inc.*..... 640 4,429 Wind River Systems, Inc.*... 1,610 11,801 ----------- TOTAL SOFTWARE 830,496 ----------- SPECIALTY RETAIL 3.0% Aaron Rents, Inc. .......... 1,070 35,909 Aeropostale, Inc.*.......... 1,580 53,673 America's Car-Mart, Inc.*... 240 3,893 Asbury Automotive Group, Inc. .................... 760 7,349 Bebe Stores, Inc. .......... 910 8,372 Big 5 Sporting Goods Corp. ................... 520 4,280 Blockbuster, Inc. -- Class A*....................... 4,189 3,351 Borders Group, Inc.*........ 1,430 3,904 Brown Shoe Co., Inc. ....... 1,000 6,430 Buckle, Inc.(The)........... 550 20,553 Build-A-Bear Workshop, Inc.*.................... 390 2,129 Cabela's, Inc.*............. 930 11,913 Cache, Inc.*................ 270 1,229 Casual Male Retail Group, Inc.*.................... 880 1,118 Cato Corp. -- Class A....... 650 12,493 Charlotte Russe Holding, Inc.*.................... 490 6,149 Charming Shoppes, Inc.*..... 2,680 9,353 Chico's FAS, Inc.*.......... 4,179 31,928 Children's Place Retail Stores, Inc.(The)*....... 550 15,642 Christopher & Banks Corp. .. 830 4,615 Citi Trends, Inc.*.......... 340 8,350 Coldwater Creek, Inc.*...... 1,350 4,658 Collective Brands, Inc.*.... 1,510 21,925 Conn's, Inc.*............... 230 3,781 Dress Barn, Inc.*........... 1,060 16,048 DSW, Inc. -- Class A*....... 320 3,478 Finish Line, Inc. -- Class A........................ 1,010 8,585 Genesco, Inc.*.............. 450 10,251 Group 1 Automotive, Inc. ... 550 11,715 Gymboree Corp.*............. 670 23,048 Haverty Furniture Cos., Inc. .................... 420 4,557 hhgregg, Inc.*.............. 300 4,980 Hibbett Sports, Inc.*....... 670 13,969 Hot Topic, Inc.*............ 1,030 12,607 J. Crew Group, Inc.*........ 1,000 17,210 Jo-Ann Stores, Inc.*........ 600 10,992 Jos. A. Bank Clothiers, Inc.*.................... 430 17,389 Lumber Liquidators, Inc.*... 220 3,291 MarineMax, Inc.*............ 390 1,775 Men's Wearhouse, Inc.(The).. 1,220 22,741 Midas, Inc.*................ 330 3,300 Monro Muffler, Inc. ........ 390 9,738 New York & Co, Inc.*........ 550 3,190 Pacific Sunwear of California, Inc.*........ 1,560 6,318 PEP Boys-Manny Moe & Jack... 1,000 7,400 Pier 1 Imports, Inc.*....... 2,110 3,946 Rent-A-Center, Inc.*........ 1,580 30,415 Rex Stores Corp.*........... 190 2,261 Sally Beauty Holdings, Inc.*.................... 2,230 16,502 Shoe Carnival, Inc.*........ 210 2,449 Sonic Automotive, Inc. -- Class A.......... 620 3,199 Stage Stores, Inc. ......... 910 11,147 Stein Mart, Inc.*........... 600 2,622 Syms Corp.*................. 160 906 Systemax, Inc.*............. 260 4,384 Talbots, Inc. .............. 580 1,369 Tractor Supply Co.*......... 790 31,900 Tween Brands, Inc.*......... 590 1,723 Ulta Salon Cosmetics & Fragrance, Inc.*......... 480 4,200 Wet Seal, Inc.(The) -- Class A*....................... 2,180 8,306 Zale Corp.*................. 760 2,827 Zumiez, Inc.*............... 460 5,548 ----------- TOTAL SPECIALTY RETAIL 629,283 ----------- TEXTILES, APPAREL & LUXURY GOODS 1.4% American Apparel, Inc.*..... 800 5,400 Carter's, Inc.*............. 1,340 28,649 Cherokee, Inc. ............. 180 3,289 Columbia Sportswear Co. .... 290 8,909 Crocs, Inc.*................ 1,970 4,433 Deckers Outdoor Corp.*...... 310 17,521 FGX International Holdings, Ltd.*.................... 330 3,802 Fossil, Inc.*............... 1,070 21,571 Fuqi Intl, Inc.*............ 230 1,444 G-III Apparel Group, Ltd.*.. 310 2,486 Iconix Brand Group, Inc.*... 1,360 19,394 K-Swiss, Inc. -- Class A.... 610 6,124 Kenneth Cole Productions, Inc. -- Class A.......... 210 1,453 Lululemon Athletica, Inc.*.. 460 6,417 Maidenform Brands, Inc.*.... 530 6,757 Movado Group, Inc. ......... 380 3,485 Oxford Industries, Inc. .... 340 3,312 Perry Ellis International, Inc.*.................... 290 2,126 Quiksilver, Inc.*........... 2,979 4,915 Skechers U.S.A., Inc. -- Class A*......... 780 9,126 Steven Madden, Ltd.*........ 420 12,356 Timberland Co. -- Class A*.. 1,130 18,351 True Religion Apparel, Inc.*.................... 400 6,304 Under Armour, Inc. -- Class A*....................... 780 18,361 Unifi, Inc.*................ 1,070 963 Unifirst Corp. ............. 340 12,679 Volcom, Inc.*............... 430 5,801 Warnaco Group, Inc.*........ 1,080 31,147 Weyco Group, Inc. .......... 170 4,667 Wolverine World Wide, Inc. .................... 1,180 24,579 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 295,821 -----------
See Notes to Financial Statements. 46 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) THRIFTS & MORTGAGE FINANCE 1.2% Abington Bancorp, Inc. ..... 530 $4,659 Anchor BanCorp Wisconsin, Inc. .................... 450 734 Bank Mutual Corp. .......... 1,140 11,708 BankFinancial Corp. ........ 470 5,029 Beneficial Mutual Bancorp, Inc.*.................... 770 7,746 Berkshire Hills Bancorp, Inc. .................... 280 6,317 Brookline Bancorp, Inc. .... 1,380 13,690 Brooklyn Fed Bancorp, Inc. .................... 80 994 Clifton Savings Bancorp, Inc. .................... 250 2,745 Corus Bankshares, Inc.*..... 890 187 Danvers Bancorp, Inc. ...... 420 6,094 Dime Community Bancshares... 560 4,670 Doral Financial Corp.*...... 130 618 ESSA Bancorp, Inc. ......... 370 5,047 Federal Agricultural Mortgage Corp. -- Class C........................ 220 695 First Financial Holdings, Inc. .................... 280 2,520 First Financial Northwest... 490 3,954 First Niagara Financial Group, Inc. ............. 2,799 37,898 First Place Financial Corp. ................... 400 2,272 Flagstar Bancorp, Inc.*..... 1,980 2,871 Flushing Financial Corp. ... 510 4,697 Fox Chase Bancorp, Inc.*.... 150 1,422 Guaranty Financial Group, Inc.*.................... 2,150 1,268 Home Federal Bancorp Inc/ID................... 160 1,614 Kearny Financial Corp. ..... 420 4,683 Meridian Interstate Bancorp, Inc.*.................... 250 1,995 NASB Financial, Inc. ....... 80 1,765 NewAlliance Bancshares, Inc. .................... 2,570 33,179 Northwest Bancorp, Inc. .... 400 7,032 OceanFirst Financial Corp. ................... 210 2,551 Ocwen Financial Corp.*...... 840 9,341 Oritani Financial Corp.*.... 290 4,115 PMI Group, Inc.(The)........ 1,920 1,210 Provident Financial Services, Inc. .......... 1,410 15,045 Provident New York Bancorp.. 950 8,046 Radian Group, Inc. ......... 1,900 3,287 Rockville Financial, Inc. .. 210 1,976 Roma Financial Corp. ....... 210 2,732 TrustCo Bank Corp. ......... 1,790 10,740 United Community Financial Corp. ................... 640 1,325 United Financial Bancorp, Inc. .................... 400 5,308 ViewPoint Financial Group... 260 4,046 Waterstone Financial Inc.*.. 160 456 Westfield Financial, Inc. .. 750 7,005 WSFS Financial Corp. ....... 150 4,066 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 259,352 ----------- TOBACCO 0.2% Alliance One International, Inc.*.................... 2,100 7,875 Star Scientific, Inc.*...... 1,740 8,561 Universal Corp. ............ 600 18,096 Vector Group, Ltd. ......... 780 10,514 ----------- TOTAL TOBACCO 45,046 ----------- TRADING COMPANIES & DISTRIBUTORS 0.6% Aceto Corp. ................ 580 4,147 Aircastle Ltd. ............. 1,100 7,260 Applied Industrial Technologies, Inc. ...... 1,000 22,500 Beacon Roofing Supply, Inc.*.................... 1,050 16,695 DXP Enterprises, Inc.*...... 170 2,258 H&E Equipment Services, Inc.*.................... 390 2,937 Houston Wire & Cable Co. ... 420 4,049 Interline Brands, Inc.*..... 770 9,979 Kaman Corp. -- Class A...... 600 10,146 Lawson Products, Inc. ...... 100 1,148 RSC Holdings, Inc.*......... 1,130 8,079 Rush Enterprises, Inc. -- Class A*......... 800 10,528 TAL International Group, Inc. .................... 340 3,257 Textainer Group Holdings, Ltd. .................... 230 2,038 Titan Machinery, Inc.*...... 170 1,722 Watsco, Inc. ............... 550 23,622 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 130,365 ----------- TRANSPORTATION INFRASTRUCTURE 0.0%(A) CAI International, Inc.*.... 170 622 ----------- TOTAL TRANSPORTATION INFRASTRUCTURE 622 ----------- WATER UTILITIES 0.3% American States Water Co. .. 410 14,157 Cadiz, Inc.*................ 280 1,694 California Water Service Group.................... 460 17,954 Connecticut Water Service, Inc. .................... 200 4,148 Consolidated Water Co., Ltd. .................... 340 4,560 Middlesex Water Co. ........ 310 4,371 SJW Corp. .................. 310 7,812 Southwest Water Co. ........ 580 3,329 ----------- TOTAL WATER UTILITIES 58,025 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.2% Centennial Communications Corp.*................... 1,590 13,149 FiberTower Corp.*........... 2,849 1,111 ICO Global Communications Holdings, Ltd.*.......... 2,450 1,348 iPCS, Inc.*................. 410 5,953 Syniverse Holdings, Inc.*... 1,210 15,246 TerreStar Corp.*............ 1,380 704 USA Mobility, Inc. ......... 460 5,115 Virgin Mobile USA, Inc. -- Class A*......... 870 1,783 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 44,409 ----------- TOTAL COMMON STOCKS (Cost $15,537,006) 17,227,039 ----------- RIGHTS & WARRANTS 0.0%(A) Deltek Inc., expires 6/30/09*................. 280 0 ----------- TOTAL RIGHTS & WARRANTS (Cost $0) 0 ----------- FACE AMOUNT --------------------------------------------------------- REPURCHASE AGREEMENTS 5.2% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $1,106,003 on 05/01/09 collateralized by $1,110,000 FHLMC at 2.875% due 04/30/10 with a value of $1,132,200.... $1,106,000 1,106,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $1,106,000) 1,106,000 ----------- TOTAL INVESTMENTS 87.1% (Cost $16,643,006) 18,333,039 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--12.9% 2,705,534 ----------- NET ASSETS--100.0% $21,038,573 ---------------------------------------------------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 47 RYDEX 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
UNREALIZED CONTRACTS GAIN --------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $7,105,820).............. 146 $724,147 ----------- UNITS --------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston June 2009 Russell 2000 Index Swap, Terminating 06/26/09 (Notional Market Value $14,585,318)**..... 29,915 $1,842,909 Goldman Sachs International May 2009 Russell 2000 Index Swap, Terminating 05/07/09 (Notional Market Value $3,179,140)**...... 6,521 963 ----------- (TOTAL NOTIONAL MARKET VALUE $17,764,458) $1,843,872 ---------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Russell 2000 Index +/- financing at a variable rate. (a) Amount represents less than 0.05% of net assets. FHLMC--Federal Home Loan Mortgage Corporation. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. 48 RYDEX INVERSE 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE -------------------------------------------------------- REPURCHASE AGREEMENTS 80.2% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $11,315,028 on 05/01/09 collateralized by $11,315,000 FHLMC at 2.875% due 04/30/10 with a value of $11,541,300.. $11,315,000 $11,315,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $11,315,000) 11,315,000 ----------- TOTAL INVESTMENTS 80.2% (Cost $11,315,000) 11,315,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--19.8% 2,793,216 ----------- NET ASSETS--100.0% $14,108,216 --------------------------------------------------------
UNREALIZED CONTRACTS LOSS ----------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2009 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $4,234,290).............. 87 $(327,184) -----------------------------------------------------
UNREALIZED UNITS LOSS ------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston June 2009 Russell 2000 Index Swap, Terminating 06/26/09 (Notional Market Value $11,822,638)*........ 24,249 $(1,979,924) Goldman Sachs International May 2009 Russell 2000 Index Swap, Terminating 05/07/09 (Notional Market Value $12,180,970)*.............. 24,983 (1,734,735) ----------- (TOTAL NOTIONAL MARKET VALUE $24,003,608) $(3,714,659) ------------------------------------------------------
* Price return based on S&P Russell 2000 Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. SEMI-ANNUAL REPORT 49 RYDEX 2X S&P SELECT SECTOR ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 83.5% ENERGY EQUIPMENT & SERVICES 14.3% Baker Hughes, Inc. ............ 2,820 $100,336 BJ Services Co. ............... 4,400 61,116 Cameron International Corp.*... 2,510 64,206 Diamond Offshore Drilling, Inc. ....................... 840 60,824 ENSCO International, Inc. ..... 1,820 51,470 Halliburton Co. ............... 7,360 148,819 Nabors Industries, Ltd.*....... 4,240 64,490 National-Oilwell Varco, Inc.*.. 3,530 106,888 Rowan Cos., Inc. .............. 2,680 41,835 Schlumberger, Ltd. ............ 6,450 315,985 Smith International, Inc. ..... 2,510 64,884 --------- TOTAL ENERGY EQUIPMENT & SERVICES 1,080,853 --------- GAS UTILITIES 0.7% EQT Corp. ..................... 1,630 54,817 --------- TOTAL GAS UTILITIES 54,817 --------- OIL, GAS & CONSUMABLE FUELS 68.5% Anadarko Petroleum Corp. ...... 3,610 155,447 Apache Corp. .................. 2,560 186,522 Cabot Oil & Gas Corp. ......... 1,690 51,021 Chesapeake Energy Corp. ....... 5,050 99,535 Chevron Corp. ................. 13,310 879,791 ConocoPhillips................. 10,140 415,740 CONSOL Energy, Inc. ........... 2,080 65,062 Denbury Resources, Inc.*....... 1,610 26,211 Devon Energy Corp. ............ 3,440 178,364 El Paso Corp. ................. 8,410 58,029 EOG Resources, Inc. ........... 2,050 130,134 Exxon Mobil Corp. ............. 20,050 1,336,733 Hess Corp. .................... 2,280 124,921 Marathon Oil Corp. ............ 5,530 164,241 Massey Energy Co. ............. 2,800 44,548 Murphy Oil Corp. .............. 1,780 84,924 Noble Energy, Inc. ............ 1,600 90,800 Occidental Petroleum Corp. .... 4,840 272,444 Peabody Energy Corp. .......... 2,710 71,517 Pioneer Natural Resources Co. ........................ 2,170 50,170 Range Resources Corp. ......... 1,620 64,751 Southwestern Energy Co.*....... 3,030 108,656 Spectra Energy Corp. .......... 5,940 86,130 Sunoco, Inc. .................. 1,700 45,067 Tesoro Corp. .................. 2,650 40,413 Valero Energy Corp. ........... 4,700 93,248 Williams Cos., Inc. ........... 5,980 84,318 XTO Energy, Inc. .............. 4,560 158,050 --------- TOTAL OIL, GAS & CONSUMABLE FUELS 5,166,787 --------- TOTAL COMMON STOCKS (Cost $6,108,906) 6,302,457 -----------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------ REPURCHASE AGREEMENTS 10.7% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $804,002 on 05/01/09 collateralized by $850,000 FNMA at 5.500% due 07/14/28 with a value of $824,500............... $804,000 $804,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $804,000) 804,000 ---------- TOTAL INVESTMENTS 94.2% (Cost $6,912,906) 7,106,457 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--5.8% 440,505 ---------- NET ASSETS--100.0% $7,546,962 ------------------------------------------------------
UNREALIZED UNITS LOSS ---------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston June 2009 S&P Select Sector Energy Index Swap, Terminating 06/26/09 (Notional Market Value $8,870,094)**.............. 19,354 $(51,285) ----------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Energy Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. 50 RYDEX INVERSE 2X S&P SELECT SECTOR ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------- REPURCHASE AGREEMENTS 89.1% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $1,361,003 on 05/01/09 collateralized by $1,435,000 FNMA at 5.500% due 07/14/28 with a value of $1,391,950............ $1,361,000 $1,361,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $1,361,000) 1,361,000 ---------- TOTAL INVESTMENTS 89.1% (Cost $1,361,000) 1,361,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--10.9% 167,011 ---------- NET ASSETS--100.0% $1,528,011 ------------------------------------------------------- UNREALIZED UNITS LOSS ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston June 2009 S&P Select Sector Energy Index Swap, Terminating 06/26/09 (Notional Market Value $2,993,089)*............. 6,531 $(77,101) -------------------------------------------------------
* Price return based on S&P Select Sector Energy Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. SEMI-ANNUAL REPORT 51 RYDEX 2X S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 82.1% CAPITAL MARKETS 17.9% Ameriprise Financial, Inc. .................... 3,220 $84,847 Bank of New York Mellon Corp. ................... 16,920 431,121 Charles Schwab Corp.(The)... 13,800 255,024 E*TRADE Financial Corp.*.... 8,420 12,041 Federated Investors, Inc. -- Class B.......... 1,310 29,973 Franklin Resources, Inc. ... 2,230 134,870 Goldman Sachs Group, Inc.(The)................ 7,400 950,900 Invesco Ltd. ............... 5,570 81,990 Janus Capital Group, Inc. .. 2,330 23,370 Legg Mason, Inc. ........... 2,100 42,147 Morgan Stanley.............. 15,820 373,985 Northern Trust Corp. ....... 3,510 190,804 State Street Corp. ......... 6,360 217,067 T. Rowe Price Group, Inc. .. 3,770 145,220 ----------- TOTAL CAPITAL MARKETS 2,973,359 ----------- COMMERCIAL BANKS 15.4% BB&T Corp. ................. 8,230 192,088 Comerica, Inc. ............. 2,230 46,785 Fifth Third Bancorp......... 8,500 34,850 First Horizon National Corp. ................... 3,110 35,796 Huntington Bancshares, Inc. .................... 5,390 15,038 KeyCorp..................... 7,280 44,772 M&T Bank Corp. ............. 1,140 59,793 Marshall & Ilsley Corp. .... 3,910 22,600 PNC Financial Services Group, Inc. ............. 6,300 250,110 Regions Financial Corp. .... 10,230 45,933 SunTrust Banks, Inc. ....... 5,250 75,810 U.S. Bancorp................ 25,840 470,805 Wells Fargo & Co. .......... 62,390 1,248,424 Zions Bancorp............... 1,700 18,581 ----------- TOTAL COMMERCIAL BANKS 2,561,385 ----------- CONSUMER FINANCE 3.8% American Express Co. ....... 17,240 434,793 Capital One Financial Corp. ................... 5,770 96,590 Discover Financial Services................. 7,090 57,642 SLM Corp.*.................. 6,880 33,230 ----------- TOTAL CONSUMER FINANCE 622,255 ----------- DIVERSIFIED FINANCIAL SERVICES 21.1% Bank of America Corp. ...... 94,250 841,652 CIT Group, Inc. ............ 5,720 12,698 Citigroup, Inc. ............ 80,620 245,891 CME Group, Inc. ............ 980 216,923 IntercontinentalExchange, Inc.*.................... 1,070 93,732 JPMorgan Chase & Co. ....... 55,330 1,825,890 Leucadia National Corp.*.... 2,670 56,684 Moody's Corp. .............. 2,800 82,656 Nasdaq OMX Group (The)*..... 2,020 38,845 NYSE Euronext............... 3,810 88,278 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 3,503,249 ----------- INSURANCE 15.7% AFLAC, Inc. ................ 6,880 198,763 Allstate Corp. ............. 7,890 184,074 American International Group, Inc. ............. 39,610 54,662 Aon Corp. .................. 4,030 170,066 Assurant, Inc. ............. 1,730 42,281 Chubb Corp. ................ 5,190 202,151 Cincinnati Financial Corp. ................... 2,390 57,241 Genworth Financial, Inc. -- Class A.......... 6,380 15,057 Hartford Financial Services Group, Inc. ............. 4,790 54,941 Lincoln National Corp. ..... 3,770 42,375 Loews Corp. ................ 5,320 132,415 Marsh & McLennan Cos., Inc. .................... 7,580 159,862 MBIA, Inc.*................. 2,520 11,920 MetLife, Inc. .............. 12,040 358,190 Principal Financial Group, Inc. .................... 3,820 62,419 Progressive Corp.*.......... 9,960 152,189 Prudential Financial, Inc. .................... 6,240 180,211 Torchmark Corp. ............ 1,240 36,369 Travelers Cos., Inc.(The)... 8,610 354,215 Unum Group.................. 4,880 79,739 XL Capital, Ltd. -- Class A........................ 5,040 47,930 ----------- TOTAL INSURANCE 2,597,070 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 6.9% Apartment Investment & Management Co. -- Class A........................ 1,730 12,629 AvalonBay Communities, Inc. .................... 1,170 66,468 Boston Properties, Inc. .... 1,790 88,462 Equity Residential.......... 4,020 92,018 HCP, Inc. .................. 3,740 82,093 Health Care REIT, Inc. ..... 1,630 55,534 Host Hotels & Resorts, Inc. .................... 8,700 66,903 Kimco Realty Corp. ......... 4,590 55,172 Plum Creek Timber Co., Inc. .................... 2,430 83,883 ProLogis.................... 6,180 56,300 Public Storage, Inc. ....... 1,850 123,691 Simon Property Group, Inc. .................... 3,710 191,436 Ventas, Inc. ............... 2,300 65,872 Vornado Realty Trust........ 2,270 110,980 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,151,441 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% CB Richard Ellis Group, Inc. -- Class A*......... 3,310 24,825 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 24,825 ----------- THRIFTS & MORTGAGE FINANCE 1.1% Hudson City Bancorp, Inc. .. 7,690 96,586 People's United Financial, Inc. .................... 5,130 80,131 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 176,717 ----------- TOTAL COMMON STOCKS (Cost $10,736,976) 13,610,301 ----------- FACE AMOUNT ------------------------------------------------------- REPURCHASE AGREEMENTS 0.9% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $158,000 on 05/01/09 collateralized by $170,000 FNMA at 5.500% due 07/14/28 with a value of $164,900.............. $158,000 158,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $158,000) 158,000 ----------- TOTAL INVESTMENTS 83.0% (Cost $10,894,976) 13,768,301 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--17.0% 2,818,816 ----------- NET ASSETS--100.0% $16,587,117 -------------------------------------------------------
See Notes to Financial Statements. 52 RYDEX 2X S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
UNREALIZED UNITS GAIN ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston June 2009 S&P Select Sector Financial Index Swap, Terminating 06/26/09 (Notional Market Value $19,948,505)**........... 185,103 $1,557,065 -------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Financial Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. REIT--Real Estate Investment Trust See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 RYDEX INVERSE 2X S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE -------------------------------------------------------- REPURCHASE AGREEMENTS 85.2% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $8,730,022 on 05/01/09 collateralized by $9,180,000 FNMA at 5.500% due 07/14/28 with a value of $8,904,600... $8,730,000 $8,730,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $8,730,000) 8,730,000 ------------ TOTAL INVESTMENTS 85.2% (Cost $8,730,000) 8,730,000 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--14.8% 1,513,027 ------------ NET ASSETS--100.0% $10,243,027 -------------------------------------------------------- UNREALIZED CONTRACTS LOSS -------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2009 S&P 500 Index E- Mini Futures Contracts (Aggregate Market Value of Contracts $652,500).. 15 $(26) ------------ UNITS -------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston June 2009 S&P Select Sector Financial Index Swap, Terminating 06/26/09 (Notional Market Value $19,749,781)*........... 183,259 $(3,957,547) --------------------------------------------------------
* Price return based on S&P Select Sector Financial Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. 54 RYDEX 2X S&P SELECT SECTOR HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 83.9% BIOTECHNOLOGY 11.6% Amgen, Inc.*................. 3,350 $162,375 Biogen Idec, Inc.*........... 980 47,373 Celgene Corp.*............... 1,490 63,653 Cephalon, Inc.*.............. 220 14,434 Genzyme Corp.*............... 900 47,997 Gilead Sciences, Inc.*....... 2,950 135,110 ---------- TOTAL BIOTECHNOLOGY 470,942 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 13.5% Baxter International, Inc. .. 2,020 97,970 Becton, Dickinson & Co. ..... 800 48,384 Boston Scientific Corp.*..... 4,910 41,293 C.R. Bard, Inc. ............. 340 24,354 Covidien, Ltd. .............. 1,630 53,757 Dentsply International, Inc. ..................... 480 13,738 Hospira, Inc.*............... 520 17,092 Intuitive Surgical, Inc.*.... 130 18,685 Medtronic, Inc. ............. 3,640 116,480 St Jude Medical, Inc.*....... 1,150 38,548 Stryker Corp. ............... 780 30,194 Varian Medical Systems, Inc.*..................... 400 13,348 Zimmer Holdings, Inc.*....... 730 32,113 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 545,956 ---------- HEALTH CARE PROVIDERS & SERVICES 13.1% Aetna, Inc. ................. 1,510 33,235 AmerisourceBergen Corp. ..... 510 17,156 Cardinal Health, Inc. ....... 1,180 39,872 CIGNA Corp. ................. 910 17,936 Coventry Health Care, Inc.*.. 480 7,637 DaVita, Inc.*................ 340 15,766 Express Scripts, Inc.*....... 840 53,735 Humana, Inc.*................ 590 16,980 Laboratory Corp. of America Holdings*................. 350 22,453 McKesson Corp. .............. 910 33,670 Medco Health Solutions, Inc.*..................... 1,640 71,422 Patterson Cos., Inc.*........ 300 6,138 Quest Diagnostics, Inc. ..... 520 26,692 Tenet Healthcare Corp.*...... 1,400 3,150 UnitedHealth Group, Inc. .... 3,970 93,374 WellPoint, Inc.*............. 1,660 70,982 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 530,198 ---------- HEALTH CARE TECHNOLOGY 0.2% IMS Health, Inc. ............ 620 7,787 ---------- TOTAL HEALTH CARE TECHNOLOGY 7,787 ---------- LIFE SCIENCES TOOLS & SERVICES 2.5% Life Technologies Corp.*..... 560 20,888 Millipore Corp.*............. 200 11,820 PerkinElmer, Inc. ........... 380 5,536 Thermo Fisher Scientific Inc.*..................... 1,350 47,358 Waters Corp.*................ 310 13,693 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 99,295 ---------- PHARMACEUTICALS 43.0% Abbott Laboratories.......... 4,240 177,444 Allergan, Inc. .............. 1,020 47,593 Bristol-Myers Squibb Co. .... 6,450 123,840 Eli Lilly & Co. ............. 3,280 107,978 Forest Laboratories, Inc.*... 990 21,473 Johnson & Johnson, Inc. ..... 8,960 469,146 King Pharmaceuticals, Inc.*.. 860 6,777 Merck & Co., Inc. ........... 6,830 165,559 Mylan Inc.*.................. 990 13,117 Pfizer, Inc. ................ 21,850 291,916 Schering-Plough Corp. ....... 5,330 122,697 Watson Pharmaceuticals, Inc.*..................... 360 11,138 Wyeth........................ 4,330 183,592 ---------- TOTAL PHARMACEUTICALS 1,742,270 ---------- TOTAL COMMON STOCKS (Cost $3,909,712) 3,396,448 ---------- FACE AMOUNT ------------------------------------------------------- REPURCHASE AGREEMENTS 8.3% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $337,001 on 05/01/09 collateralized by $345,000 FHLMC at 4.750% due 04/09/24 with a value of $345,431.................. $337,000 337,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $337,000) 337,000 ---------- TOTAL INVESTMENTS 92.2% (Cost $4,246,712) 3,733,448 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--7.8% 316,271 ---------- NET ASSETS--100.0% $4,049,719 ------------------------------------------------------- UNREALIZED UNITS LOSS ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston June 2009 S&P Select Sector Health Care Index Swap, Terminating 06/26/09 (Notional Market Value $4,733,698)**....... 19,504 $(38,770) -------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Health Care Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. SEMI-ANNUAL REPORT 55 RYDEX INVERSE 2X S&P SELECT SECTOR HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE -------------------------------------------------------- REPURCHASE AGREEMENTS 84.3% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $5,051,013 on 05/01/09 collateralized by $5,150,000 FHLMC at 4.750% due 04/09/24 with a value of $5,156,438.... $5,051,000 $5,051,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $5,051,000) 5,051,000 ---------- TOTAL INVESTMENTS 84.3% (Cost $5,051,000) 5,051,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--15.7% 940,603 ---------- NET ASSETS--100.0% $5,991,603 -------------------------------------------------------- UNREALIZED UNITS GAIN -------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston June 2009 S&P Select Sector Health Care Index Swap, Terminating 06/26/09 (Notional Market Value $11,892,431)*...... 49,001 $26,362 --------------------------------------------------------
* Price return based on S&P Select Sector Health Care Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. 56 RYDEX 2X S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 83.4% COMMUNICATIONS EQUIPMENT 12.0% Ciena Corp.*................. 349 $4,171 Cisco Systems, Inc.*......... 13,448 259,815 Corning, Inc. ............... 3,673 53,699 Harris Corp. ................ 349 10,672 JDS Uniphase Corp.*.......... 787 3,628 Juniper Networks, Inc.*...... 1,271 27,517 Motorola, Inc. .............. 5,511 30,476 QUALCOMM, Inc. .............. 3,834 162,255 Tellabs, Inc.*............... 1,152 6,037 ---------- TOTAL COMMUNICATIONS EQUIPMENT 558,270 ---------- COMPUTERS & PERIPHERALS 19.9% Apple, Inc.*................. 2,055 258,581 Dell, Inc.*.................. 4,100 47,642 EMC Corp.*................... 4,738 59,367 Hewlett-Packard Co. ......... 4,898 176,230 International Business Machines Corp. ........... 3,092 319,125 Lexmark International, Inc. -- Class A*.......... 247 4,846 NetApp, Inc.*................ 833 15,244 QLogic Corp.*................ 378 5,360 SanDisk Corp.*............... 611 9,605 Sun Microsystems, Inc.*...... 1,865 17,084 Teradata Corp.*.............. 467 7,808 ---------- TOTAL COMPUTERS & PERIPHERALS 920,892 ---------- DIVERSIFIED TELECOMMUNICATION SERVICES 12.9% AT&T, Inc. .................. 13,578 347,868 CenturyTel, Inc. ............ 275 7,466 Embarq Corp. ................ 363 13,271 Frontier Communications Corp. .................... 877 6,236 Qwest Communications International, Inc. ...... 3,687 14,343 Verizon Communications, Inc. ..................... 6,547 198,636 Windstream Corp. ............ 1,154 9,578 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 597,398 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.4% Agilent Technologies, Inc.*.. 877 16,014 Amphenol Corp. -- Class A.... 436 14,754 Jabil Circuit, Inc. ......... 698 5,654 Molex, Inc. ................. 396 6,601 Tyco Electronics, Ltd. ...... 1,152 20,091 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 63,114 ---------- INTERNET SOFTWARE & SERVICES 6.3% Akamai Technologies, Inc.*... 451 9,931 eBay, Inc.*.................. 2,569 42,311 Google, Inc. -- Class A*..... 467 184,918 VeriSign, Inc.*.............. 498 10,249 Yahoo!, Inc.*................ 3,297 47,114 ---------- TOTAL INTERNET SOFTWARE & SERVICES 294,523 ---------- IT SERVICES 4.4% Affiliated Computer Services, Inc. -- Class A*.......... 248 11,998 Automatic Data Processing, Inc. ..................... 1,196 42,099 Cognizant Technology Solutions Corp. -- Class A*........................ 729 18,072 Computer Sciences Corp.*..... 380 14,045 Convergys Corp.*............. 422 4,266 Fidelity National Information Services, Inc. ........... 508 9,068 Fiserv, Inc.*................ 393 14,667 Mastercard, Inc. -- Class A.. 175 32,104 Paychex, Inc. ............... 787 21,257 Total System Services, Inc. ..................... 539 6,721 Western Union Co. ........... 1,723 28,860 ---------- TOTAL IT SERVICES 203,157 ---------- OFFICE ELECTRONICS 0.3% Xerox Corp. ................. 2,217 13,546 ---------- TOTAL OFFICE ELECTRONICS 13,546 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 9.2% Advanced Micro Devices, Inc.*..................... 1,632 5,891 Altera Corp. ................ 742 12,102 Analog Devices, Inc. ........ 729 15,513 Applied Materials, Inc. ..... 3,165 38,645 Broadcom Corp. -- Class A*... 1,036 24,025 Intel Corp. ................. 10,573 166,842 KLA-Tencor Corp. ............ 440 12,206 Linear Technology Corp. ..... 556 12,110 LSI Corp.*................... 1,839 7,062 MEMC Electronic Materials, Inc.*..................... 581 9,412 Microchip Technology, Inc. .. 468 10,764 Micron Technology, Inc.*..... 2,200 10,736 National Semiconductor Corp. .................... 555 6,865 Novellus Systems, Inc.*...... 291 5,255 NVIDIA Corp.*................ 1,343 15,418 Teradyne, Inc.*.............. 641 3,808 Texas Instruments, Inc. ..... 3,006 54,288 Xilinx, Inc. ................ 687 14,042 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 424,984 ---------- SOFTWARE 15.7% Adobe Systems, Inc.*......... 1,256 34,352 Autodesk, Inc.*.............. 596 11,884 BMC Software, Inc.*.......... 464 16,087 CA, Inc. .................... 976 16,836 Citrix Systems, Inc.*........ 466 13,295 Compuware Corp.*............. 731 5,468 Electronic Arts, Inc.*....... 802 16,321 Intuit, Inc.*................ 786 18,180 McAfee, Inc.*................ 392 14,716 Microsoft Corp. ............. 17,618 356,941 Novell, Inc.*................ 1,051 3,952 Oracle Corp. ................ 8,898 172,087 Salesforce.com, Inc.*........ 277 11,858 Symantec Corp.*.............. 1,969 33,965 ---------- TOTAL SOFTWARE 725,942 ---------- WIRELESS TELECOMMUNICATION SERVICES 1.3% American Tower Corp. -- Class A*........................ 949 30,140 Sprint Nextel Corp.*......... 6,896 30,067 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 60,207 ---------- TOTAL COMMON STOCKS (Cost $3,845,426) 3,862,033 -------------------------------------------------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 57 RYDEX 2X S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------- REPURCHASE AGREEMENTS 2.5% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $117,000 on 05/01/09 collateralized by $125,000 FNMA at 5.500% due 07/14/28 with a value of $121,250.................. $117,000 $117,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $117,000) 117,000 ---------- TOTAL INVESTMENTS 85.9% (Cost $3,962,426) 3,979,033 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--14.1% 655,600 ---------- NET ASSETS--100.0% $4,634,633 ------------------------------------------------------- UNREALIZED UNITS GAIN ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston June 2009 S&P Select Sector Technology Index Swap, Terminating 06/26/09 (Notional Market Value $5,474,396)**....... 31,637 $305,632 -------------------------------------------------------
* Non-Income Producing Security. ** Price return based on Select Sector Technology Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. 58 RYDEX INVERSE 2X S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2009 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE -------------------------------------------------------- REPURCHASE AGREEMENTS 101.1% State Street Bank & Trust Co., 0.090%, dated 04/30/09, to be repurchased at $1,753,004 on 05/01/09 collateralized by $1,845,000 FNMA at 5.500% due 07/14/28 with a value of $1,789,650.... $1,753,000 $1,753,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $1,753,000) 1,753,000 ---------- TOTAL INVESTMENTS 101.1% (Cost $1,753,000) 1,753,000 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--(1.1)% (19,691) ---------- NET ASSETS--100.0% $1,733,309 -------------------------------------------------------- UNREALIZED UNITS LOSS -------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston June 2009 S&P Select Sector Technology Index Swap, Terminating 06/26/09 (Notional Market Value $3,423,143)*....... 19,782 $(438,009) --------------------------------------------------------
* Price return based on S&P Select Sector Technology Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association. On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservatorship, the FHFA has full powers to control the assets and operations of the firm. See Notes to Financial Statements. SEMI-ANNUAL REPORT 59 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX 2X INVERSE 2X RYDEX 2X INVERSE 2X S&P MIDCAP S&P MIDCAP S&P 500 ETF S&P 500 ETF 400 ETF 400 ETF ------------ ------------ ----------- ----------- ASSETS Investments at Market Value*.............. $119,416,616 $ -- $ 8,738,668 $ -- Repurchase Agreements..................... 8,806,000 71,173,000 453,000 6,893,000 ------------ ------------ ----------- ----------- Total investments......................... 128,222,616 71,173,000 9,191,668 6,893,000 ------------ ------------ ----------- ----------- Cash...................................... 1,007 868 867 229 Segregated Cash for Swaps................. 6,595,420 30,385,410 567,297 3,885,545 Margin Deposit for Future Contracts....... 13,239,000 3,753,000 510,000 240,000 Unrealized Appreciation on Swap Agreements.............................. 1,907,462 -- 661,264 -- Receivables: Investments Sold........................ 4,766,309 -- -- -- Dividends............................... 185,556 -- 4,808 -- Variation Margin on Futures Contracts... 58,840 -- -- 8,169 Equity Index Swap Settlement............ 56,913 -- 7,331 -- ------------ ------------ ----------- ----------- TOTAL ASSETS......................... 155,033,123 105,312,278 10,943,235 11,026,943 ------------ ------------ ----------- ----------- LIABILITIES Unrealized Depreciation on Swap Agreements.............................. -- 7,472,482 -- 2,237,789 Payables: Investments Purchased................... 2,013,055 -- 496,480 -- Equity Index Swap Settlement............ -- 154,404 -- 22,977 Fund Shares Repurchased................. 6,078,319 -- -- -- Variation Margin on Futures Contracts... -- 16,680 15,058 -- Accrued Management Fees................. 163,304 115,017 10,113 12,346 ------------ ------------ ----------- ----------- TOTAL LIABILITIES.................... 8,254,678 7,758,583 521,651 2,273,112 ------------ ------------ ----------- ----------- NET ASSETS................................ $146,778,445 $ 97,553,695 $10,421,584 $ 8,753,831 ============ ============ =========== =========== NET ASSETS CONSIST OF: Paid-in Capital........................... $220,517,020 $107,014,112 $16,589,983 $16,203,215 Undistributed (Distributions in Excess) of Net Investment Income................... 146,033 (288,897) 4,481 (22,019) Accumulated Net Realized Gain (Loss) on Investment Securities, Futures, Options and Swaps............................... (94,828,809) 1,739,387 (9,019,305) (5,106,147) Net Unrealized Appreciation (Depreciation) on Investment Securities, Futures and Swaps................................... 20,944,201 (10,910,907) 2,846,425 (2,321,218) ------------ ------------ ----------- ----------- NET ASSETS................................ $146,778,445 $ 97,553,695 $10,421,584 $ 8,753,831 ============ ============ =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value............... 7,250,000 950,000 450,000 150,000 ============ ============ =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share.............. $ 20.25 $ 102.69 $ 23.16 $ 58.36 ============ ============ =========== =========== *Total Cost of Investments................ $127,631,878 $ 71,173,000 $ 7,716,696 $ 6,893,000 ============ ============ =========== ===========
See Notes to Financial Statements. 60 STATEMENTS OF ASSETS AND LIABILITIES (continued) April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX 2X S&P INVERSE 2X S&P RYDEX 2X INVERSE 2X SELECT SECTOR SELECT SECTOR RUSSELL 2000 ETF RUSSELL 2000 ETF ENERGY ETF ENERGY ETF ---------------- ---------------- ------------- -------------- ASSETS Investments at Market Value*......... $ 17,227,039 $ -- $ 6,302,457 $ -- Repurchase Agreements................ 1,106,000 11,315,000 804,000 1,361,000 ------------ ----------- ----------- ----------- Total investments.................... 18,333,039 11,315,000 7,106,457 1,361,000 ------------ ----------- ----------- ----------- Cash................................. 318 387 707 212 Segregated Cash for Swaps............ 1,361,750 6,227,730 593,800 247,630 Margin Deposit for Future Contracts.. 524,000 308,000 -- -- Unrealized Appreciation on Swap Agreements......................... 1,843,872 Receivables: Investments Sold................... 30,625 -- -- -- Dividends.......................... 12,195 -- 2,621 -- Variation Margin on Futures Contracts....................... -- 38,629 -- -- Equity Index Swap Settlement....... 23,138 -- 1,545 -- ------------ ----------- ----------- ----------- TOTAL ASSETS.................... 22,128,937 17,889,746 7,705,130 1,608,842 ------------ ----------- ----------- ----------- LIABILITIES Unrealized Depreciation on Swap Agreements......................... -- 3,714,659 51,285 77,101 Payables: Investments Purchased.............. 1,003,742 -- 98,763 -- Equity Index Swap Settlement....... -- 42,991 -- 1,627 Variation Margin on Futures Contracts....................... 67,589 -- -- -- Accrued Management Fees............ 19,033 23,880 8,120 2,103 ------------ ----------- ----------- ----------- TOTAL LIABILITIES............... 1,090,364 3,781,530 158,168 80,831 ------------ ----------- ----------- ----------- NET ASSETS........................... $ 21,038,573 $14,108,216 $ 7,546,962 $ 1,528,011 ============ =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital...................... $ 30,971,274 $22,521,892 $13,673,653 $ 5,461,876 Undistributed (Distributions in Excess) of Net Investment Income... 13,567 (56,475) (1,334) (7,887) Accumulated Net Realized Loss on Investment Securities, Futures, Options and Swaps.................. (14,164,900) (4,338,848) (6,267,624) (3,848,877) Net Unrealized Appreciation (Depreciation) on Investment Securities, Futures and Swaps...... 4,218,632 (4,018,353) 142,267 (77,101) ------------ ----------- ----------- ----------- NET ASSETS........................... $ 21,038,573 $14,108,216 $ 7,546,962 $ 1,528,011 ============ =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.......... 1,000,000 200,000 550,004 150,000 ============ =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share......... $ 21.04 $ 70.54 $ 13.72 $ 10.19 ============ =========== =========== =========== *Total Cost of Investments........... $ 16,643,006 $11,315,000 $ 6,912,906 $ 1,361,000 ============ =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 61 STATEMENTS OF ASSETS AND LIABILITIES (continued) April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX 2X S&P INVERSE 2X S&P RYDEX 2X S&P INVERSE 2X S&P SELECT SECTOR SELECT SECTOR SELECT SECTOR SELECT SECTOR FINANCIAL ETF FINANCIAL ETF HEALTH CARE ETF HEALTH CARE ETF ------------- -------------- --------------- --------------- ASSETS Investments at Market Value*......... $ 13,610,301 $ -- $ 3,396,448 $ -- Repurchase Agreements................ 158,000 8,730,000 337,000 5,051,000 ------------ ----------- ----------- ----------- Total investments.................... 13,768,301 8,730,000 3,733,448 5,051,000 ------------ ----------- ----------- ----------- Cash................................. 981 561 253 166 Segregated Cash for Swaps............ 1,250,660 5,504,900 349,850 937,900 Margin Deposit for Future Contracts.. -- -- -- -- Unrealized Appreciation on Swap Agreements......................... 1,557,065 -- -- 26,362 Receivables: Dividends.......................... 12,841 -- 4,454 -- Variation Margin on Futures Contracts....................... -- 349 -- -- Equity Index Swap Settlement....... 22,506 -- 5,073 -- ------------ ----------- ----------- ----------- TOTAL ASSETS.................... 16,612,354 14,235,810 4,093,078 6,015,428 ------------ ----------- ----------- ----------- LIABILITIES Unrealized Depreciation on Swap Agreements......................... -- 3,957,547 38,770 -- Payables: Investments Purchased.............. 11,700 -- -- -- Equity Index Swap Settlement....... -- 27,799 -- 16,406 Accrued Management Fees............ 13,537 7,437 4,589 7,419 ------------ ----------- ----------- ----------- TOTAL LIABILITIES............... 25,237 3,992,783 43,359 23,825 ------------ ----------- ----------- ----------- NET ASSETS........................... $ 16,587,117 $10,243,027 $ 4,049,719 $ 5,991,603 ============ =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital...................... $ 38,583,149 $12,670,833 $ 7,500,275 $ 7,500,000 Undistributed (Distributions in Excess) of Net Investment Income... 14,326 (16,471) 2,294 (20,355) Accumulated Net Realized Gain (Loss) on Investment Securities, Futures, Options and Swaps.................. (26,440,748) 1,545,862 (2,900,817) (1,514,404) Net Unrealized Appreciation (Depreciation) on Investment Securities, Futures and Swaps...... 4,430,390 (3,957,197) (552,033) 26,362 ------------ ----------- ----------- ----------- NET ASSETS........................... $ 16,587,117 $10,243,027 $ 4,049,719 $ 5,991,603 ============ =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.......... 2,150,205 700,100 100,006 100,000 ============ =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share......... $ 7.71 $ 14.63 $ 40.49 $ 59.92 ============ =========== =========== =========== *Total Cost of Investments........... $ 10,894,976 $ 8,730,000 $ 4,246,712 $ 5,051,000 ============ =========== =========== ===========
See Notes to Financial Statements. 62 STATEMENTS OF ASSETS AND LIABILITIES (concluded) April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX 2X S&P INVERSE 2X S&P SELECT SECTOR SELECT SECTOR TECHNOLOGY ETF TECHNOLOGY ETF -------------- -------------- ASSETS Investments at Market Value*............................. $ 3,862,033 $ -- Repurchase Agreements.................................... 117,000 1,753,000 ----------- ----------- Total investments........................................ 3,979,033 1,753,000 ----------- ----------- Cash..................................................... 463 583 Segregated Cash for Swaps................................ 211,712 430,600 Unrealized Appreciation on Swap Agreements............... 305,632 -- Receivables: Fund Shares Sold....................................... 1,535,941 -- Dividends.............................................. 6,215 -- Equity Index Swap Settlement........................... 7,757 -- ----------- ----------- TOTAL ASSETS........................................ 6,046,753 2,184,183 ----------- ----------- LIABILITIES Unrealized Depreciation on Swap Agreements............... -- 438,009 Payables: Investments Purchased.................................. 1,409,105 -- Equity Index Swap Settlement........................... -- 10,248 Accrued Management Fees................................ 3,015 2,617 ----------- ----------- TOTAL LIABILITIES................................... 1,412,120 450,874 ----------- ----------- NET ASSETS............................................... $ 4,634,633 $ 1,733,309 =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.......................................... $ 9,036,043 $ 4,540,184 Undistributed (Distributions in Excess) of Net Investment Income................................................. 4,377 (10,761) Accumulated Net Realized Loss on Investment Securities, Futures, Options and Swaps............................. (4,728,026) (2,358,105) Net Unrealized Appreciation (Depreciation) on Investment Securities, Futures and Swaps.......................... 322,239 (438,009) ----------- ----------- NET ASSETS............................................... $ 4,634,633 $ 1,733,309 =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................................. 150,004 50,000 =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share.................................................. $ 30.90 $ 34.67 =========== =========== *Total Cost of Investments............................... $ 3,962,426 $ 1,753,000 =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 63 STATEMENTS OF OPERATIONS For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX 2X INVERSE 2X RYDEX 2X INVERSE 2X S&P MIDCAP S&P MIDCAP S&P 500 ETF* S&P 500 ETF* 400 ETF* 400 ETF* ------------ ------------ ----------- ----------- INVESTMENT INCOME Dividends............................... $ 1,534,329 $ -- $ 55,138 $ -- Interest................................ 4,917 40,127 125 3,045 ------------ ------------ ----------- ----------- Total Income......................... 1,539,246 40,127 55,263 3,045 ------------ ------------ ----------- ----------- EXPENSES Management Fee.......................... 430,275 325,687 21,011 24,742 Trustee Fees............................ 4,656 3,337 211 322 ------------ ------------ ----------- ----------- Total Expenses....................... 434,931 329,024 21,222 25,064 ------------ ------------ ----------- ----------- Net Investment Income (Loss).............. 1,104,315 (288,897) 34,041 (22,019) ------------ ------------ ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments............................. (23,475,126) -- (2,013,207) -- Futures Contracts....................... (34,983,729) 6,000,655 (602,264) (611,236) Swap Contracts.......................... (2,041,710) (14,734,031) 15,556 (4,961,477) ------------ ------------ ----------- ----------- Net Realized Loss.................... (60,500,565) (8,733,376) (2,599,915) (5,572,713) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities................... 14,697,683 -- 2,249,061 -- Futures Contracts....................... 21,191,633 7,034,338 561,189 383,137 Swap Contracts.......................... 1,907,462 (7,472,482) 424,662 (831,841) ------------ ------------ ----------- ----------- Net Change in Unrealized Appreciation (Depreciation) on Investments........... 37,796,778 (438,144) 3,234,912 (448,704) ------------ ------------ ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments, Futures, Options and Swap Contracts............................... (22,703,787) (9,171,520) 634,997 (6,021,417) ------------ ------------ ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.......... $(21,599,472) $ (9,460,417) $ 669,038 $(6,043,436) ============ ============ =========== ===========
* The fund commenced operations on November 5, 2007. See Notes to Financial Statements. 64 STATEMENTS OF OPERATIONS (continued) For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX 2X S&P INVERSE 2X S&P RYDEX 2X INVERSE 2X SELECT SECTOR SELECT SECTOR RUSSELL 2000 ETF* RUSSELL 2000 ETF* ENERGY ETF** ENERGY ETF** ----------------- ----------------- ------------- -------------- INVESTMENT INCOME Dividends, Net of Foreign Tax Withheld....................... $ 113,737 $ -- $ 50,718 $ -- Interest.......................... 644 8,707 156 1,206 ----------- ----------- ----------- ----------- Total Income................... 114,381 8,707 50,874 1,206 ----------- ----------- ----------- ----------- EXPENSES Management Fee.................... 46,564 64,289 19,272 8,914 Trustee Fees...................... 523 893 129 179 Other Fees........................ 89 -- -- -- ----------- ----------- ----------- ----------- Total Expenses................. 47,176 65,182 19,401 9,093 ----------- ----------- ----------- ----------- Net Investment Income (Loss)........ 67,205 (56,475) 31,473 (7,887) ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Loss From: Investments....................... (3,685,965) -- (899,086) -- Futures Contracts................. (4,752,060) (577,665) (48,249) (37,659) Swap Contracts.................... (410,407) (5,988,643) (504,990) (3,811,218) ----------- ----------- ----------- ----------- Net Realized Loss.............. (8,848,432) (6,566,308) (1,452,325) (3,848,877) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities............. 2,700,824 -- 100,533 -- Futures Contracts................. 2,109,392 1,923,766 -- -- Swap Contracts.................... 1,843,872 (1,958,820) (703,404) 2,897,666 ----------- ----------- ----------- ----------- Net Change in Unrealized Appreciation (Depreciation) on Investments....................... 6,654,088 (35,054) (602,871) 2,897,666 ----------- ----------- ----------- ----------- Net Realized and Unrealized Loss on Investments, Futures, Options and Swap Contracts.................... (2,194,344) (6,601,362) (2,055,196) (951,211) ----------- ----------- ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS.... $(2,127,139) $(6,657,837) $(2,023,723) $ (959,098) =========== =========== =========== =========== Foreign Tax Withheld........... 40 -- -- --
* The fund commenced operations on November 5, 2007. ** The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. SEMI-ANNUAL REPORT 65 STATEMENTS OF OPERATIONS (continued) For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX 2X S&P INVERSE 2X S&P RYDEX 2X S&P INVERSE 2X S&P SELECT SECTOR SELECT SECTOR SELECT SECTOR SELECT SECTOR FINANCIAL ETF* FINANCIAL ETF* HEALTH CARE ETF* HEALTH CARE ETF* -------------- -------------- ---------------- ---------------- INVESTMENT INCOME Dividends......................... $ 135,178 $ -- $ 49,639 $ -- Interest.......................... 248 2,307 116 2,759 ----------- --------- ----------- ----------- Total Income................... 135,426 2,307 49,755 2,759 ----------- --------- ----------- ----------- EXPENSES Management Fee.................... 30,251 18,586 15,375 22,812 Trustee Fees...................... 695 192 284 302 Other Fees........................ -- -- 51 -- ----------- --------- ----------- ----------- Total Expenses................. 30,946 18,778 15,710 23,114 ----------- --------- ----------- ----------- Net Investment Income (Loss)........ 104,480 (16,471) 34,045 (20,355) ----------- --------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments....................... (5,407,568) -- (524,083) -- Futures Contracts................. (48,379) (129,200) -- (33,318) Swap Contracts.................... (2,750,492) 354,500 (222,923) (1,481,086) ----------- --------- ----------- ----------- Net Realized Gain (Loss)....... (8,206,439) 225,300 (747,006) (1,514,404) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities............. 3,196,506 -- 11,886 -- Futures Contracts................. -- (1,038) -- -- Swap Contracts.................... (1,009,496) (637,456) (500,282) 1,755,309 ----------- --------- ----------- ----------- Net Change in Unrealized Appreciation (Depreciation) on Investments....................... 2,187,010 (638,494) (488,396) 1,755,309 ----------- --------- ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments, Futures, Options and Swap Contracts........ (6,019,429) (413,194) (1,235,402) 240,905 ----------- --------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $(5,914,949) $(429,665) $(1,201,357) $ 220,550 =========== ========= =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. 66 STATEMENTS OF OPERATIONS (concluded) For the Six Months Ended April 30, 2009 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX 2X S&P INVERSE 2X S&P SELECT SECTOR SELECT SECTOR TECHNOLOGY ETF* TECHNOLOGY ETF* --------------- --------------- INVESTMENT INCOME Dividends............................................ $ 23,999 $ -- Interest............................................. 75 1,627 --------- ----------- Total Income...................................... 24,074 1,627 --------- ----------- EXPENSES Management Fee....................................... 8,626 12,061 Trustee Fees......................................... 172 327 Other Fees........................................... 13 -- --------- ----------- Total Expenses.................................... 8,811 12,388 --------- ----------- Net Investment Income (Loss)........................... 15,263 (10,761) --------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.......................................... (842,229) -- Futures Contracts.................................... -- (73,647) Swap Contracts....................................... 17,673 (2,284,458) --------- ----------- Net Realized Loss................................. (824,556) (2,358,105) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities................................ 846,053 -- Swap Contracts....................................... (37,937) 1,441,557 --------- ----------- Net Change in Unrealized Appreciation (Depreciation) on Investments.......................................... 808,116 1,441,557 --------- ----------- Net Realized and Unrealized Loss on Investments, Futures, Options and Swap Contracts.................. (16,440) (916,548) --------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS...................................... $ (1,177) $ (927,309) ========= ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. SEMI-ANNUAL REPORT 67 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX 2X S&P 500 ETF RYDEX INVERSE 2X S&P 500 ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008* (UNAUDITED) OCTOBER 31, 2008* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income (Loss).... $ 1,104,315 $ 451,990 $ (288,897) $ 532,036 Net Realized Gain (Loss)........ (60,500,565) (34,335,074) (8,733,376) 39,280,084 Net Change in Unrealized Appreciation (Depreciation) on Investments............... 37,796,778 (16,852,577) (438,144) (10,472,763) ------------ ------------ ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Operations................... (21,599,472) (50,735,661) (9,460,417) 29,339,357 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (1,039,503) (363,939) -- (552,721) Net Realized Gains.............. -- -- (12,634,948) -- ------------ ------------ ------------ ------------ Decrease in Net Assets From Distributions to Shareholders................. (1,039,503) (363,939) (12,634,948) (552,721) ------------ ------------ ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased.. 88,152,391 168,610,953 105,589,023 112,256,284 Value of Shares Redeemed........ (32,098,864) (4,147,460) (52,045,520) (74,937,363) ------------ ------------ ------------ ------------ Net Increase in Net Assets Resulting From Share Transactions................. 56,053,527 164,463,493 53,543,503 37,318,921 ------------ ------------ ------------ ------------ Increase in Net Assets....... 33,414,552 113,363,893 31,448,138 66,105,557 NET ASSETS--BEGINNING OF PERIOD... 113,363,893 -- 66,105,557 -- ------------ ------------ ------------ ------------ NET ASSETS--END OF PERIOD(1)...... $146,778,445 $113,363,893 $ 97,553,695 $ 66,105,557 ============ ============ ============ ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income............... $ 146,033 $ 81,221 $ (288,897) $ -- ============ ============ ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................ 4,750,000 4,250,000 800,000 1,150,000 Shares Redeemed................. (1,600,000) (150,000) (350,000) (650,000) Shares Outstanding, Beginning of Period....................... 4,100,000 -- 500,000 -- ------------ ------------ ------------ ------------ Shares Outstanding, End of Period....................... 7,250,000 4,100,000 950,000 500,000 ============ ============ ============ ============
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. 68 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P RYDEX 2X S&P MIDCAP 400 ETF MIDCAP 400 ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008* (UNAUDITED) OCTOBER 31, 2008* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income (Loss).... $ 34,041 $ 55,729 $ (22,019) $ 176,138 Net Realized Gain (Loss)........ (2,599,915) (6,424,515) (5,572,713) 10,761,388 Net Change in Unrealized Appreciation (Depreciation) on Investments............... 3,234,912 (388,487) (448,704) (1,872,514) Contribution from Advisor....... -- -- -- 148,040 ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations................... 669,038 (6,757,273) (6,043,436) 9,213,052 ----------- ----------- ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (29,560) (50,604) -- (178,257) Net Realized Gains.............. -- -- (2,190,847) -- Capital......................... -- (2,868) -- -- ----------- ----------- ----------- ------------ Decrease in Net Assets From Distributions to Shareholders................. (29,560) (53,472) (2,190,847) (178,257) ----------- ----------- ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased.. 6,026,265 20,963,143 10,392,003 26,670,531 Value of Shares Redeemed........ (1,724,185) (8,672,372) -- (29,109,215) ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions................. 4,302,080 12,290,771 10,392,003 (2,438,684) ----------- ----------- ----------- ------------ Increase in Net Assets....... 4,941,558 5,480,026 2,157,720 6,596,111 NET ASSETS--BEGINNING OF PERIOD... 5,480,026 -- 6,596,111 -- ----------- ----------- ----------- ------------ NET ASSETS--END OF PERIOD(1)...... $10,421,584 $ 5,480,026 $ 8,753,831 $ 6,596,111 =========== =========== =========== ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income............... $ 4,481 $ -- $ (22,019) $ -- =========== =========== =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................ 350,000 350,000 100,000 350,000 Shares Redeemed................. (100,000) (150,000) -- (300,000) Shares Outstanding, Beginning of Period....................... 200,000 -- 50,000 -- ----------- ----------- ----------- ------------ Shares Outstanding, End of Period....................... 450,000 200,000 150,000 50,000 =========== =========== =========== ============
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. SEMI-ANNUAL REPORT 69 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X RUSSELL 2000 ETF RYDEX INVERSE 2X RUSSELL 2000 ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008* (UNAUDITED) OCTOBER 31, 2008* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income (Loss).... $ 67,205 $ 78,359 $ (56,475) $ 294,102 Net Realized Gain (Loss)........ (8,848,432) (5,325,917) (6,566,308) 12,757,827 Net Change in Unrealized Appreciation (Depreciation) on Investments............... 6,654,088 (2,435,456) (35,054) (3,983,299) Contribution from Advisor....... -- -- -- 315,120 ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Operations................... (2,127,139) (7,683,014) (6,657,837) 9,383,750 ----------- ----------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (55,997) (66,551) -- (298,197) Net Realized Gains.............. -- -- (2,169,111) -- ----------- ----------- ------------ ------------ Decrease in Net Assets From Distributions to Shareholders................. (55,997) (66,551) (2,169,111) (298,197) ----------- ----------- ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased.. 9,780,206 30,146,525 24,663,726 67,341,919 Value of Shares Redeemed........ -- (8,955,457) (18,246,709) (59,909,325) ----------- ----------- ------------ ------------ Net Increase in Net Assets Resulting From Share Transactions................. 9,780,206 21,191,068 6,417,017 7,432,594 ----------- ----------- ------------ ------------ Increase (Decrease) in Net Assets..................... 7,597,070 13,441,503 (2,409,931) 16,518,147 NET ASSETS--BEGINNING OF PERIOD... 13,441,503 -- 16,518,147 -- ----------- ----------- ------------ ------------ NET ASSETS--END OF PERIOD(1)...... $21,038,573 $13,441,503 $ 14,108,216 $ 16,518,147 =========== =========== ============ ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income............... $ 13,567 $ 2,359 $ (56,475) $ -- =========== =========== ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................ 550,000 600,000 200,000 850,000 Shares Redeemed................. -- (150,000) (150,000) (700,000) Shares Outstanding, Beginning of Period....................... 450,000 -- 150,000 -- ----------- ----------- ------------ ------------ Shares Outstanding, End of Period....................... 1,000,000 450,000 200,000 150,000 =========== =========== ============ ============
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. 70 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P RYDEX INVERSE 2X S&P SELECT SECTOR ENERGY ETF SELECT SECTOR ENERGY ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008* (UNAUDITED) OCTOBER 31, 2008* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income (Loss).... $ 31,473 $ 8,291 $ (7,887) $ 18,425 Net Realized Gain (Loss)........ (1,452,325) (4,815,299) (3,848,877) 6,661,068 Net Change in Unrealized Appreciation (Depreciation) on Investments............... (602,871) 745,138 2,897,666 (2,974,767) ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations................... (2,023,723) (4,061,870) (959,098) 3,704,726 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (33,790) (7,308) -- (19,874) Net Realized Gains.............. -- -- (4,324,132) -- ----------- ----------- ----------- ----------- Decrease in Net Assets From Distributions to Shareholders................. (33,790) (7,308) (4,324,132) (19,874) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased.. 6,146,803 10,214,317 1,215,702 7,500,000 Value of Shares Purchased through Dividend Reinvestments................ 48 -- -- -- Value of Shares Redeemed........ (586,171) (2,101,344) -- (5,589,313) ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions................. 5,560,680 8,112,973 1,215,702 1,910,687 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets..................... 3,503,167 4,043,795 (4,067,528) 5,595,539 NET ASSETS--BEGINNING OF PERIOD... 4,043,795 -- 5,595,539 -- ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)...... $ 7,546,962 $ 4,043,795 $ 1,528,011 $ 5,595,539 =========== =========== =========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income............... $ (1,334) $ 983 $ (7,887) $ -- =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................ 400,000 250,000 100,000 100,000 Shares Purchased through Dividend Reinvestments....... 4 -- -- -- Shares Redeemed................. (50,000) (50,000) -- (50,000) Shares Outstanding, Beginning of Period....................... 200,000 -- 50,000 -- ----------- ----------- ----------- ----------- Shares Outstanding, End of Period....................... 550,004 200,000 150,000 50,000 =========== =========== =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. SEMI-ANNUAL REPORT 71 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P RYDEX INVERSE 2X S&P SELECT SECTOR FINANCIAL ETF SELECT SECTOR FINANCIAL ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008* (UNAUDITED) OCTOBER 31, 2008* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income (Loss).... $ 104,480 $ 116,930 $ (16,471) $ 16,113 Net Realized Gain (Loss)........ (8,206,439) (18,241,119) 225,300 2,984,583 Net Change in Unrealized Appreciation (Depreciation) on Investments............... 2,187,010 2,243,380 (638,494) (3,318,703) ----------- ------------ ------------ ----------- Net Decrease in Net Assets Resulting From Operations.... (5,914,949) (15,880,809) (429,665) (318,007) ----------- ------------ ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (134,966) (65,308) -- (18,187) Net Realized Gains.............. -- -- (1,661,947) -- ----------- ------------ ------------ ----------- Decrease in Net Assets From Distributions to Shareholders................. (134,966) (65,308) (1,661,947) (18,187) ----------- ------------ ------------ ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased.. 12,300,266 35,235,683 22,014,741 7,500,000 Value of Shares Purchased through Dividend Reinvestments................ 1,741 -- 3,296 -- Value of Shares Redeemed........ (275,245) (8,679,296) (16,847,204) -- ----------- ------------ ------------ ----------- Net Increase in Net Assets Resulting From Share Transactions................. 12,026,762 26,556,387 5,170,833 7,500,000 ----------- ------------ ------------ ----------- Increase in Net Assets....... 5,976,847 10,610,270 3,079,221 7,163,806 NET ASSETS--BEGINNING OF PERIOD... 10,610,270 -- 7,163,806 -- ----------- ------------ ------------ ----------- NET ASSETS--END OF PERIOD(1)...... $16,587,117 $ 10,610,270 $ 10,243,027 $ 7,163,806 =========== ============ ============ =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income............... $ 14,326 $ 44,812 $ (16,471) $ -- =========== ============ ============ =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................ 1,800,000 750,000 800,000 100,000 Shares Purchased through Dividend Reinvestments....... 205 -- 100 -- Shares Redeemed................. (50,000) (350,000) (200,000) -- Shares Outstanding, Beginning of Period....................... 400,000 -- 100,000 -- ----------- ------------ ------------ ----------- Shares Outstanding, End of Period....................... 2,150,205 400,000 700,100 100,000 =========== ============ ============ ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. 72 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P RYDEX INVERSE 2X S&P SELECT SECTOR HEALTH CARE ETF SELECT SECTOR HEALTH CARE ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008* (UNAUDITED) OCTOBER 31, 2008* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income (Loss).... $ 34,045 $ 23,180 $ (20,355) $ 16,166 Net Realized Gain (Loss)........ (747,006) (2,153,811) (1,514,404) 2,612,958 Net Change in Unrealized Appreciation (Depreciation) on Investments............... (488,396) (63,637) 1,755,309 (1,728,947) ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations................... (1,201,357) (2,194,268) 220,550 900,177 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (32,762) (22,169) -- (18,758) Net Realized Gains.............. -- -- (2,610,366) -- ----------- ----------- ----------- ----------- Decrease in Net Assets From Distributions to Shareholders................. (32,762) (22,169) (2,610,366) (18,758) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased.. -- 7,500,000 -- 7,500,000 Value of Shares Purchased through Dividend Reinvestments................ 275 -- -- -- ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions................. 275 7,500,000 -- 7,500,000 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets..................... (1,233,844) 5,283,563 (2,389,816) 8,381,419 NET ASSETS--BEGINNING OF PERIOD... 5,283,563 -- 8,381,419 -- ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)...... $ 4,049,719 $ 5,283,563 $ 5,991,603 $ 8,381,419 =========== =========== =========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income............... $ 2,294 $ 1,011 $ (20,355) $ -- =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................ -- 100,000 -- 100,000 Shares Purchased through Dividend Reinvestments....... 6 -- -- -- Shares Outstanding, Beginning of Period....................... 100,000 -- 100,000 -- ----------- ----------- ----------- ----------- Shares Outstanding, End of Period....................... 100,006 100,000 100,000 100,000 =========== =========== =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. SEMI-ANNUAL REPORT 73 STATEMENTS OF CHANGES IN NET ASSETS (concluded) --------------------------------------------------------------------------------
RYDEX 2X S&P RYDEX INVERSE 2X S&P SELECT SECTOR TECHNOLOGY ETF SELECT SECTOR TECHNOLOGY ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED APRIL 30, 2009 YEAR ENDED (UNAUDITED) OCTOBER 31, 2008* (UNAUDITED) OCTOBER 31, 2008* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income (Loss).... $ 15,263 $ 15,972 $ (10,761) $ 15,900 Net Realized Gain (Loss)........ (824,556) (3,903,470) (2,358,105) 6,294,225 Net Change in Unrealized Appreciation (Depreciation) on Investments............... 808,116 (485,877) 1,441,557 (1,879,566) ---------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations................... (1,177) (4,373,375) (927,309) 4,430,559 ---------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (15,531) (11,327) -- (18,238) Net Realized Gains.............. -- -- (3,807,845) -- ---------- ----------- ----------- ----------- Decrease in Net Assets From Distributions to Shareholders................. (15,531) (11,327) (3,807,845) (18,238) ---------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased.. 1,535,941 7,500,000 -- 7,500,000 Value of Shares Purchased through Dividend Reinvestments................ 102 -- -- -- Value of Shares Redeemed........ -- -- -- (5,443,858) ---------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions................. 1,536,043 7,500,000 -- 2,056,142 ---------- ----------- ----------- ----------- Increase (Decrease) in Net Assets..................... 1,519,335 3,115,298 (4,735,154) 6,468,463 NET ASSETS--BEGINNING OF PERIOD... 3,115,298 -- 6,468,463 -- ---------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)...... $4,634,633 $ 3,115,298 $ 1,733,309 $ 6,468,463 ========== =========== =========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income............... $ 4,377 $ 4,645 $ (10,761) $ -- ========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................ 50,000 100,000 -- 100,000 Shares Purchased through Dividend Reinvestments....... 4 -- -- -- Shares Redeemed................. -- -- -- (50,000) Shares Outstanding, Beginning of Period....................... 100,000 -- 50,000 -- ---------- ----------- ----------- ----------- Shares Outstanding, End of Period....................... 150,004 100,000 50,000 50,000 ========== =========== =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. 74 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX 2X S&P 500 ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 27.65 $ 75.00 -------- -------- Net Investment Income**................................. 0.17 0.61 Net Realized and Unrealized Loss on Investments......... (7.42) (47.27) -------- -------- TOTAL FROM INVESTMENT OPERATIONS........................ (7.25) (46.66) -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (0.15) (0.69) -------- -------- NET ASSET VALUE AT END OF PERIOD........................ $ 20.25 $ 27.65 ======== ======== TOTAL RETURN***......................................... (52.86)% (62.68)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $146,778 $113,364 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.70%**** Net Investment Income................................... 1.78%**** 1.35%**** Portfolio Turnover Rate+................................ 53% 44%
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 75 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P 500 ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $132.21 $ 75.00 ------- ------- Net Investment Income (Loss)**.......................... (0.40) 1.04 Net Realized and Unrealized Gain (Loss) on Investments.. (11.07) 57.20 ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (11.47) 58.24 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... -- (1.03) Net Realized Gains...................................... (18.05) -- ------- ------- Total Distributions..................................... (18.05) (1.03) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $102.69 $132.21 ======= ======= TOTAL RETURN***......................................... (20.03)% 78.27% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $97,554 $66,106 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... (0.62)%**** 1.09%****
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. See Notes to Financial Statements. 76 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P MIDCAP 400 ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 27.40 $ 75.00 ------- ------- Net Investment Income**................................. 0.11 0.56 Net Realized and Unrealized Loss on Investments......... (4.26) (47.62) ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (4.15) (47.06) ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (0.09) (0.53) Capital................................................. -- (0.01) ------- ------- Total Distributions..................................... (0.09) (0.54) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 23.16 $ 27.40 ======= ======= TOTAL RETURN***......................................... (30.43)% (63.12)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $10,422 $ 5,480 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... 1.13%**** 0.94%**** Portfolio Turnover Rate+................................ 102% 234%
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 77 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P MIDCAP 400 ETF ------------------------------------------ SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $131.92 $ 75.00 ------- ------- Net Investment Income (Loss)**.......................... (0.28) 1.40 Contribution from Advisor............................... -- 1.17 Net Realized and Unrealized Gain (Loss) on Investments.. (29.46) 55.83 ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (29.74) 58.40 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... -- (1.48) Net Realized Gains...................................... (43.82) -- ------- ------- Total Distributions..................................... (43.82) (1.48) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 58.36 $131.92 ======= ======= TOTAL RETURN***......................................... (63.14)% 78.90%(a) RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 8,754 $ 6,596 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... (0.62)%**** 1.65%****
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (a) For the period ending October 31, 2008, 1.77% of the Fund's total return consisted of a voluntary reimbursement by the advisor for a realized investment loss. Excluding this item, total return would have been 77.33%. See Notes to Financial Statements. 78 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X RUSSELL 2000 ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 29.87 $ 75.00 ------- ------- Net Investment Income**................................. 0.09 0.51 Net Realized and Unrealized Loss on Investments......... (8.84) (45.09) ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (8.75) (44.58) ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (0.08) (0.55) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 21.04 $ 29.87 ======= ======= TOTAL RETURN***......................................... (59.04)% (59.79)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $21,039 $13,442 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... 1.00%**** 0.93%**** Portfolio Turnover Rate+................................ 67% 192%
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 79 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X RUSSELL 2000 ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $110.12 $ 75.00 ------- ------- Net Investment Income (Loss)**.......................... (0.33) 1.21 Contribution from Advisor............................... -- 1.29 Net Realized and Unrealized Gain (Loss) on Investments.. (24.79) 33.76 ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (25.12) 36.26 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... -- (1.14) Net Realized Gains...................................... (14.46) -- ------- ------- Total Distributions..................................... (14.46) (1.14) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 70.54 $110.12 ======= ======= TOTAL RETURN***......................................... (51.55)% 48.79%(a) RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $14,108 $16,518 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... (0.61)%**** 1.41%****
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (a) For the period ending October 31, 2008, 1.19% of the Fund's total return consisted of a voluntary reimbursement by the advisor for a realized investment loss. Excluding this item, total return would have been 47.60%. See Notes to Financial Statements. 80 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT SECTOR ENERGY ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 20.22 $ 75.00 ------- ------- Net Investment Income**................................. 0.08 0.09 Net Realized and Unrealized Loss on Investments......... (6.50) (54.72) ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (6.42) (54.63) ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (0.08) (0.15) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 13.72 $ 20.22 ======= ======= TOTAL RETURN***......................................... (63.97)% (72.94)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 7,547 $ 4,044 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... 1.13%**** 0.44%**** Portfolio Turnover Rate+................................ 98% 105%
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 81 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P SELECT SECTOR ENERGY ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $111.91 $ 75.00 ------- ------- Net Investment Income (Loss)**.......................... (0.06) 0.22 Net Realized and Unrealized Gain (Loss) on Investments.. (15.18) 37.09 ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (15.24) 37.31 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... -- (0.40) Net Realized Gains...................................... (86.48) -- ------- ------- Total Distributions..................................... (86.48) (0.40) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 10.19 $111.91 ======= ======= TOTAL RETURN***......................................... (51.46)% 49.75% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 1,528 $ 5,596 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... (0.60)%**** 0.55%****
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. See Notes to Financial Statements. 82 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT SECTOR FINANCIAL ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 26.53 $ 75.00 -------- ------- Net Investment Income**................................. 0.10 0.45 Net Realized and Unrealized Loss on Investments......... (18.76) (48.76) -------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (18.66) (48.31) -------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (0.16) (0.16) -------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 7.71 $ 26.53 ======== ======= TOTAL RETURN***......................................... (142.18)% (64.51)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 16,587 $10,610 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.71%**** 0.71%**** Net Investment Income................................... 2.39%**** 2.60%**** Portfolio Turnover Rate+................................ 126% 177%
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 83 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P SELECT SECTOR FINANCIAL ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 71.64 $75.00 -------- ------ Net Investment Income (Loss)**.......................... (0.12) 0.16 Net Realized and Unrealized Loss on Investments......... (23.65) (3.34) -------- ------ TOTAL FROM INVESTMENT OPERATIONS........................ (23.77) (3.18) -------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... -- (0.18) Net Realized Gains...................................... (33.24) -- -------- ------ Total Distributions..................................... (33.24) (0.18) -------- ------ NET ASSET VALUE AT END OF PERIOD........................ $ 14.63 $71.64 ======== ====== TOTAL RETURN***......................................... (118.95)% (4.19)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 10,243 $7,164 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... (0.61)%**** 0.52%****
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. See Notes to Financial Statements. 84 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT SECTOR HEALTH CARE ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 52.84 $ 75.00 ------- ------- Net Investment Income**................................. 0.34 0.23 Net Realized and Unrealized Loss on Investments......... (12.36) (22.17) ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (12.02) (21.94) ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (0.33) (0.22) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 40.49 $ 52.84 ======= ======= TOTAL RETURN***......................................... (45.98)% (29.33)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 4,050 $ 5,284 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.71%**** 0.71%**** Net Investment Income................................... 1.53%**** 0.81%**** Portfolio Turnover Rate+................................ 34% 35%
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 85 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P SELECT SECTOR HEALTH CARE ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $ 83.81 $75.00 ------- ------ Net Investment Income (Loss)**.......................... (0.20) 0.16 Net Realized and Unrealized Gain on Investments......... 2.41 8.84 ------- ------ TOTAL FROM INVESTMENT OPERATIONS........................ 2.21 9.00 ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... -- (0.19) Net Realized Gains...................................... (26.10) -- ------- ------ Total Distributions..................................... (26.10) (0.19) ------- ------ NET ASSET VALUE AT END OF PERIOD........................ $ 59.92 $83.81 ======= ====== TOTAL RETURN***......................................... 11.15% 12.04% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 5,992 $8,381 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... (0.62)%**** 0.54%****
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. See Notes to Financial Statements. 86 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT SECTOR TECHNOLOGY ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $31.15 $ 75.00 ------ ------- Net Investment Income**................................. 0.15 0.16 Net Realized and Unrealized Loss on Investments......... (0.24) (43.90) ------ ------- TOTAL FROM INVESTMENT OPERATIONS........................ (0.09) (43.74) ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (0.16) (0.11) ------ ------- NET ASSET VALUE AT END OF PERIOD........................ $30.90 $ 31.15 ====== ======= TOTAL RETURN***......................................... (0.44)% (58.36)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $4,635 $ 3,115 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.71%**** 0.71%**** Net Investment Income................................... 1.22%**** 0.72%**** Portfolio Turnover Rate+................................ 52% 65%
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 87 FINANCIAL HIGHLIGHTS (concluded) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P SELECT SECTOR TECHNOLOGY ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2009 YEAR ENDED* (UNAUDITED) OCTOBER 31, 2008 ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $129.37 $ 75.00 ------- ------- Net Investment Income (Loss)**.......................... (0.22) 0.18 Net Realized and Unrealized Gain (Loss) on Investments.. (18.32) 54.37 ------- ------- TOTAL FROM INVESTMENT OPERATIONS........................ (18.54) 54.55 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... -- (0.18) Net Realized Gains...................................... (76.16) -- ------- ------- Total Distributions..................................... (76.16) (0.18) ------- ------- NET ASSET VALUE AT END OF PERIOD........................ $ 34.67 $129.37 ======= ======= TOTAL RETURN***......................................... (68.07)% 72.79% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $ 1,733 $ 6,468 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.70%**** 0.71%**** Net Investment Income................................... (0.61)%**** 0.48%****
* The Fund commenced operations on June 11, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. See Notes to Financial Statements. 88 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2009 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2009, the Trust offers thirty one portfolios, each of which represents a separate series of beneficial interest in the Trust (each a "Fund," and collectively the "Funds"). The financial statements herein relate to the following Funds: Rydex 2x S&P 500 ETF, Rydex Inverse 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex 2x Russell 2000(R) ETF, Rydex Inverse 2x Russell 2000(R) ETF, Rydex 2x S&P Select Sector Energy ETF, Rydex Inverse 2x S&P Select Sector Energy ETF, Rydex 2x S&P Select Sector Financial ETF, Rydex Inverse 2x S&P Select Sector Financial ETF, Rydex 2x S&P Select Sector Health Care ETF, Rydex Inverse 2x S&P Select Sector Health Care ETF, Rydex 2x S&P Select Sector Technology ETF, and Rydex Inverse 2x S&P Select Sector Technology ETF. Rydex 2x S&P 500 ETF, Rydex Inverse 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex 2x Russell 2000(R) ETF, and Rydex Inverse 2x Russell 2000(R) ETF commenced operations on November 5, 2007. Rydex 2x S&P Select Sector Energy ETF, Rydex Inverse 2x S&P Select Sector Energy ETF, Rydex 2x S&P Select Sector Financial ETF, Rydex Inverse 2x S&P Select Sector Financial ETF, Rydex 2x S&P Select Sector Health Care ETF, Rydex Inverse 2x S&P Select Sector Health Care ETF, Rydex 2x S&P Select Sector Technology ETF, and Rydex Inverse 2x S&P Select Sector Technology ETF commenced operations on June 10, 2008. The Funds' investment objective is to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. For Rydex 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, Rydex 2x Russell 2000(R) ETF, Rydex 2x S&P Select Sector Energy ETF, Rydex 2x S&P Select Sector Financial ETF, Rydex 2x S&P Select Sector Health Care ETF, and Rydex 2x S&P Select Sector Technology ETF (each a "Leveraged Fund," and collectively the "Leveraged Funds"), each Fund's benchmark is 200% of the performance of an index representing publicly traded securities (the "Underlying Index"). For Rydex Inverse 2x S&P 500 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex Inverse 2x Russell 2000(R) ETF, Rydex Inverse 2x S&P Select Sector Energy ETF, Rydex Inverse 2x S&P Select Sector Financial ETF, Rydex Inverse 2x S&P Select Sector Health Care ETF, and Rydex Inverse 2x S&P Select Sector Technology ETF (each a "Leveraged Inverse Fund," and collectively the "Leveraged Inverse Funds"), each Fund's benchmark is 200% of the inverse (opposite) performance of its Underlying Index. The Underlying Index for Rydex 2x S&P 500 ETF and Rydex Inverse 2x S&P 500 ETF is the S&P 500 Index. The Underlying Index for Rydex 2x S&P MidCap 400 ETF and Rydex Inverse 2x S&P MidCap 400 ETF is the S&P MidCap 400 Index. The Underlying Index for Rydex 2x Russell 2000(R) ETF and Rydex Inverse 2x Russell 2000(R) ETF is the Russell 2000(R) Index. The Underlying Index for Rydex 2x S&P Select Sector Energy ETF and Rydex Inverse 2x S&P Select Sector Energy ETF is the Energy Select Sector Index. The Underlying Index for Rydex 2x S&P Select Sector Financial ETF and Rydex Inverse 2x S&P Select Sector Financial ETF is the Financial Select Sector Index. The Underlying Index for Rydex 2x S&P Select Sector Health Care ETF and Rydex Inverse 2x S&P Select Sector Health Care ETF is the Health Care Select Sector Index. The Underlying Index for Rydex 2x S&P Select Sector Technology ETF and Rydex Inverse 2x S&P Select Sector Technology ETF is the Technology Select Sector Index. The Leveraged Funds seek to achieve their objective by investing in equity securities contained in the Underlying Index, and leveraged derivative instruments, such as equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. The Leveraged Inverse Funds seek to achieve their objective by engaging in short sales of securities and investing in leveraged derivative instruments, such as equity swaps, futures contracts, and options on securities, futures contracts, and stock indices. The Funds operate as index funds and are not actively managed. Adverse performance of a security in the Funds' portfolio will ordinarily not result in the elimination of the security from the Funds' portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures at the date of the financial statements and accompanying notes and the reported amounts of increases and decreases in net assets from operations during the reporting period. Management believes that the estimates utilized in preparing the Funds' financial statements are reasonable and prudent; however, actual results could differ from these estimates. SEMI-ANNUAL REPORT 89 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- A. SECURITY VALUATION Securities listed on a domestic securities exchange are valued based on the last sale price as of the close of regular trading hours on the New York Stock Exchange ("NYSE") or, in the absence of recorded sales, are valued at the most recent bid price. Securities for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System ("NASDAQ") are valued at the NASDAQ Official Closing Price. The Funds invest in money market mutual funds, which are valued at their NAV. Investments for which market quotations are not readily are fair valued as determine 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 instruments, 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 contacts and other derivative investments trade in the cash market, and (iii) other information and considerations, including current values in related- markets. 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 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. Debt securities 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. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements. B. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from portfolio fund transactions are calculated on the identified cost basis. Dividend income is recorded on the ex- dividend date, net of foreign tax withholdings. Interest income is recorded on the accrual basis. C. REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements with financial institutions. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed-upon price. The repurchase price reflects an agreed-upon interest rate during the time the Fund's money is invested in the security. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. The Funds follows certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by Rydex Investments, which acts as the Funds' investment advisor. In addition, the value of the collateral underlying the repurchase agreement will always be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, the Funds will seek to liquidate such collateral. However, the exercising of the Funds right to liquidate such collateral could involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase price, the Funds could suffer a loss. It is the current policy of the Funds not to invest in repurchase agreements that do not mature within seven days if any such investment, together with any other illiquid assets held by the Funds, amounts to more than 15% of the Funds net assets. The investments of the Funds in repurchase agreements, at times, may be substantial when, in the view of Rydex Investments, liquidity or other considerations so warrant. 90 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- D. FUTURES CONTRACTS The Funds may enter into stock index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specified futures 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. 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. E. SWAP AGREEMENTS The Funds may enter into domestic equity 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 index, in return for periodic payment based on a fixed or variable interest rate. 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. 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. F. COLLATERAL In conjunction with the use of short sales, futures and swap agreements, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes, or repurchase agreements allocated to each Fund. G. FEDERAL INCOME TAXES The Funds policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of the taxable income and capital gains, if any to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. 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 was 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 tax equalization, in-kind redemptions, income reclassifications from real estate investment trusts ("REITs") and losses deferred due to wash sales. For the six months ended April 30, 2009, the Funds realized net capital gains resulting from in-kind redemptions which, because they are non-taxable to the Funds, and therefore are not distributed to existing Fund shareholders, are reclassified to paid-in-capital. The in-kind net capital gains for the period ended April 30, 2009 are disclosed in the Fund's Statement of Operations. SEMI-ANNUAL REPORT 91 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- At April 30, 2009, the identified cost of investments in securities owned by each fund for federal income tax purposes and the gross unrealized appreciation and depreciation was as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION COST APPRECIATION DEPRECIATION (DEPRECIATION) ------------ ------------ ------------ -------------- Rydex 2x S&P 500 ETF..................... $127,631,878 $7,035,552 $(6,444,814) $ (590,738) Rydex Inverse 2x S&P 500 ETF............. 71,173,000 -- -- -- Rydex 2x S&P MidCap 400 ETF.............. 7,716,696 1,523,553 (48,581) 1,474,972 Rydex Inverse 2x S&P MidCap 400 ETF...... 6,893,000 -- -- -- Rydex 2x Russell 2000(R) ETF............. 16,643,006 2,335,474 (645,441) 1,690,033 Rydex Inverse 2x Russell 2000(R) ETF..... 11,315,000 -- -- -- Rydex 2x S&P Select Sector Energy ETF.... 6,912,906 428,401 (234,850) 193,551 Rydex Inverse 2x S&P Select Sector Energy ETF.................................... 1,361,000 -- -- -- Rydex 2x S&P Select Sector Financial ETF.................................... 10,894,976 2,914,809 (41,484) 2,873,325 Rydex Inverse 2x S&P Select Sector Financial ETF.......................... 8,730,000 -- -- -- Rydex 2x S&P Select Sector Health Care ETF.................................... 4,246,712 70,157 (583,421) (513,264) Rydex Inverse 2x S&P Select Sector Health Care ETF............................... 5,051,000 -- -- -- Rydex 2x S&P Select Sector Technology ETF.................................... 3,962,426 112,742 (96,135) 16,607 Rydex Inverse 2x S&P Select Sector Technology ETF......................... 1,753,000 -- -- --
H. FAIR VALUE MEASUREMENT Effective November 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 an 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 Funds' 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. 92 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- The following table summarizes the inputs used to value the Funds' net assets as of April 30, 2009:
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 Rydex 2x S&P 500 ETF............ $128,222,616 $18,519,551 $-- $1,907,462 $-- $-- $148,649,629 Rydex Inverse 2x S&P 500 ETF.... 71,173,000 -- -- -- -- -- 71,173,000 Rydex 2x S&P MidCap 400 ETF..... 9,191,668 729,509 -- 661,264 -- -- 10,582,441 Rydex Inverse 2x S&P MidCap 400 ETF........................... 6,893,000 -- -- -- -- -- 6,893,000 Rydex 2x Russell 2000 ETF....... 18,333,039 724,147 -- 1,843,872 -- -- 20,901,058 Rydex Inverse 2x Russell 2000 ETF........................... 11,315,000 -- -- -- -- -- 11,315,000 Rydex 2x S&P Select Sector Energy ETF.................... 7,106,457 -- -- -- -- -- 7,106,457 Rydex Inverse 2x S&P Select Sector Energy ETF............. 1,361,000 -- -- -- -- -- 1,361,000 Rydex 2x S&P Select Sector Financial ETF................. 13,768,301 -- -- 1,557,065 -- -- 15,325,366 Rydex Inverse 2x S&P Select Sector Financial ETF.......... 8,730,000 -- -- -- -- -- 8,730,000 Rydex 2x S&P Select Sector Health Care ETF............... 3,733,448 -- -- -- -- -- 3,733,448 Rydex Inverse 2x S&P Select Sector Health Care ETF........ 5,051,000 -- -- 26,362 -- -- 5,077,362 Rydex 2x S&P Select Sector Technology ETF................ 3,979,033 -- -- 305,632 -- -- 4,284,272 Rydex Inverse 2x S&P Select Sector Technology ETF......... 1,753,000 -- -- -- -- -- 1,753,000 LIABILITIES Rydex 2x S&P 500 ETF............ -- -- -- -- -- -- -- Rydex Inverse 2x S&P 500 ETF.... -- 3,459,275 -- 7,472,482 -- -- 10,931,757 Rydex 2x S&P MidCap 400 ETF..... -- -- -- -- -- -- -- Rydex Inverse 2x S&P MidCap 400 ETF........................... -- 93,549 -- 2,237,789 -- -- 2,331,338 Rydex 2x Russell 2000 ETF....... -- -- -- -- -- -- -- Rydex Inverse 2x Russell 2000 ETF........................... -- 327,184 -- 3,714,659 -- -- 4,041,843 Rydex 2x S&P Select Sector Energy ETF.................... -- -- -- 51,285 -- -- 51,285 Rydex Inverse 2x S&P Select Sector Energy ETF............. -- -- -- 77,101 -- -- 77,101 Rydex 2x S&P Select Sector Financial ETF................. -- -- -- -- -- -- -- Rydex Inverse 2x S&P Select Sector Financial ETF.......... -- 26 -- 3,957,547 -- -- 3,957,573 Rydex 2x S&P Select Sector Health Care ETF............... -- -- -- 38,770 -- -- 38,770 Rydex Inverse 2x S&P Select Sector Health Care ETF........ -- -- -- -- -- -- -- Rydex 2x S&P Select Sector Technology ETF................ -- -- -- -- -- -- -- Rydex Inverse 2x S&P Select Sector Technology ETF......... -- -- -- 438,009 -- -- 438,009
I. DIVIDENDS AND DISTRIBUTIONS Distributions of net investment income and net realized capital gains, if any, are declared at least annually and recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles. J. RISK AND UNCERTAINTIES The Trust invests in various investments which are exposed to risk, such as market risk. Due to the level of risk associated with certain investments it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect amounts reported in the financial statements. The risk inherent in the use of futures and options 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 Funds have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk. SEMI-ANNUAL REPORT 93 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- K. NEW ACCOUNTING PRONOUNCEMENTS In March, 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact, if any, the adoption of SFAS 161 will have on the Funds' financial statement disclosures. In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly" ("FAS 157-4"), which provides additional guidance when the volume and level of activity for the asset or liability measured at fair value have significantly decreased. Additionally, FAS 157-4 amends FASB Statement No. 157, Fair Value Measurements, expanding disclosure requirements by reporting entities surrounding the major categories of assets and liabilities carried at fair value. FAS 157-4 is effective for interim and annual periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FAS 157- 4 will have on the Funds' financial statement disclosures. In May 2009, FASB issued FASB Staff Position FSP FAS 165, "Subsequent Events" ("FAS 165"), which provides additional guidance with respect to financial reporting of subsequent events, specifically; the period covered by subsequent events, the circumstance under which subsequent events will be recognized and the disclosure an entity will make about events or transactions that occur after balance sheet date. FAS 165 is effective for interim and annual periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FAS 165 will have on the Funds' financial statement disclosures. 3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES Rydex Investments determines the composition of the portfolio of securities that must be delivered in exchange for the issuance of Creation Units and periodically adjusts the composition of the portfolio of the Funds to conform to changes in the composition of the relevant index. For these services, the Advisor receives an advisory fee at the annual rate shown below of the average daily net assets of the Funds.
ADVISORY FEE ------------ Rydex 2x S&P 500 ETF................................................ 0.70% Rydex Inverse 2x S&P 500 ETF........................................ 0.70% Rydex 2x S&P MidCap 400 ETF......................................... 0.70% Rydex Inverse 2x S&P MidCap 400 ETF................................. 0.70% Rydex 2x Russell 2000(R) ETF........................................ 0.70% Rydex Inverse 2x Russell 2000(R) ETF................................ 0.70% Rydex 2x S&P Select Sector Energy ETF............................... 0.70% Rydex Inverse 2x S&P Select Sector Energy ETF....................... 0.70% Rydex 2x S&P Select Sector Financial ETF............................ 0.70% Rydex Inverse 2x S&P Select Sector Financial ETF.................... 0.70% Rydex 2x S&P Select Sector Health Care ETF.......................... 0.70% Rydex Inverse 2x S&P Select Sector Health Care ETF.................. 0.70% Rydex 2x S&P Select Sector Technology ETF........................... 0.70% Rydex Inverse 2x S&P Select Sector Technology ETF................... 0.70%
Rydex Investments pays all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except: interest, taxes, distribution and trustee fees or expenses and extraordinary expenses. Under an Administration Agreement, State Street Bank and Trust Company (the "Administrator") provides various administrative and accounting services for the maintenance and operations of the Funds. Under a Custodian Agreement with the Trust, the Administrator maintains cash, securities and other assets of the Trust and the Funds in separate accounts for each Fund, keeps all necessary accounts and records, and provides other services. The Administrator is required, upon the order of the Trust, to deliver securities held by the Custodian and to make payments for securities purchased by the Trust for the Funds. Pursuant to a Transfer Agency and Service Agreement with the Trust, the Administrator acts as a transfer agent for the Trust's authorized and issued shares of beneficial interest, and as dividend disbursing agent of the Trust. The Advisor compensates the Administrator directly for the foregoing services. The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to pay distribution fees to Rydex Distributors, Inc. (the "Distributor") and other firms that provide distribution services ("Service Providers"). If a Service Provider provides distribution services, the Funds will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, 94 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- pursuant to Rule 12b-1 of the 1940 Act. The Distributor will, in turn, pay the Service Provider out of its fees. No such fee is currently charged to the Funds. 4. CAPITAL At April 30, 2009, there were an unlimited number of no par value shares of beneficial interest authorized. There is a minimum transaction fee per transaction to those persons purchasing or redeeming Creation Units. An additional charge of up to three times the standard transaction fee may be imposed for purchases and redemptions effected outside the National Securities Clearing Corporation usual clearing process or for cash. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the net asset value per unit of the Fund on the transaction date. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex 2x S&P 500 ETF.............................................. $2,000 Rydex Inverse 2x S&P 500 ETF...................................... 50 Rydex 2x S&P MidCap 400 ETF....................................... 2,000 Rydex Inverse 2x S&P MidCap 400 ETF............................... 50 Rydex 2x Russell 2000(R) ETF...................................... 3,000 Rydex Inverse 2x Russell 2000(R) ETF.............................. 50 Rydex 2x S&P Select Sector Energy ETF............................. 500 Rydex Inverse 2x S&P Select Sector Energy ETF..................... 50 Rydex 2x S&P Select Sector Financial ETF.......................... 750 Rydex Inverse 2x S&P Select Sector Financial ETF.................. 50 Rydex 2x S&P Select Sector Health Care ETF........................ 500 Rydex Inverse 2x S&P Select Sector Health Care ETF................ 50 Rydex 2x S&P Select Sector Technology ETF......................... 750 Rydex Inverse 2x S&P Select Sector Technology ETF................. 50
5. INVESTMENT TRANSACTIONS For the six months ended April 30, 2009 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex 2x S&P 500 ETF....................................... $42,920,602 $23,333,008 Rydex Inverse 2x S&P 500 ETF............................... -- -- Rydex 2x S&P MidCap 400 ETF................................ 1,715,170 -- Rydex Inverse 2x S&P MidCap 400 ETF........................ -- -- Rydex 2x Russell 2000(R) ETF............................... 3,734,118 -- Rydex Inverse 2x Russell 2000(R) ETF....................... -- -- Rydex 2x S&P Select Sector Energy ETF...................... 1,738,495 -- Rydex Inverse 2x S&P Select Sector Energy ETF.............. -- -- Rydex 2x S&P Select Sector Financial ETF................... 3,872,922 -- Rydex Inverse 2x S&P Select Sector Financial ETF........... -- -- Rydex 2x S&P Select Sector Health Care ETF................. -- -- Rydex Inverse 2x S&P Select Sector Health Care ETF......... -- -- Rydex 2x S&P Select Sector Technology ETF.................. 1,210,079 -- Rydex Inverse 2x S&P Select Sector Technology ETF.......... -- --
SEMI-ANNUAL REPORT 95 NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded) -------------------------------------------------------------------------------- Purchases and sales of investment securities (excluding short-term investments, U.S. government and government agency obligations) for the Funds were as follows:
PURCHASES SALES ----------- ----------- Rydex 2x S&P 500 ETF........................................ $69,734,489 $55,087,261 Rydex Inverse 2x S&P 500 ETF................................ -- -- Rydex 2x S&P MidCap 400 ETF................................. 8,333,914 5,572,135 Rydex Inverse 2x S&P MidCap 400 ETF......................... -- -- Rydex 2x Russell 2000(R) ETF................................ 11,747,479 8,042,159 Rydex Inverse 2x Russell 2000(R) ETF........................ -- -- Rydex 2x S&P Select Sector Energy ETF....................... 6,751,254 4,731,556 Rydex Inverse 2x S&P Select Sector Energy ETF............... -- -- Rydex 2x S&P Select Sector Financial ETF.................... 13,583,357 10,274,285 Rydex Inverse 2x S&P Select Sector Financial ETF............ -- -- Rydex 2x S&P Select Sector Health Care ETF.................. 1,281,079 1,731,311 Rydex Inverse 2x S&P Select Sector Health Care ETF.......... -- -- Rydex 2x S&P Select Sector Technology ETF................... 1,302,233 1,244,148 Rydex Inverse 2x S&P Select Sector Technology ETF........... -- --
96 SUPPLEMENTAL INFORMATION (Unaudited) -------------------------------------------------------------------------------- PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 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 for portfolio securities, if applicable, during the most recent 12-month period ended June 30, 2008 is also available, without charge and upon request, by (i) calling 1-800-820-0888; or accessing the Trust's Form N-PX 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 Trust's 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. SEMI-ANNUAL REPORT 97 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 FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ------------------ ---------------- CARL G. VERBONCOEUR* Rydex Series Funds - 2004 152 Trustee, President Rydex Variable Trust - 2004 (1952) Rydex Dynamic Funds - 2004 Rydex ETF Trust - 2004 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Treasurer of Rydex Specialized Products, LLC (2005 to 2009); Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2009). --------------------- MICHAEL P. BYRUM* Rydex Series Funds - 2005 152 Trustee, Vice President Rydex Variable Trust - 2005 and Rydex Dynamic Funds - 2005 Secretary (1970) 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 FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ------------------ ---------------- JOHN O. DEMARET Rydex Series Funds - 1997 152 Trustee, Chairman of Rydex Variable Trust - 1998 the Rydex Dynamic Funds - 1999 Board (1940) Rydex ETF Trust - 2003 PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------------- COREY A. COLEHOUR Rydex Series Funds - 1993 152 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, registered investment advisor (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment advisor (1985 to 2005) --------------------- J. KENNETH DALTON Rydex Series Funds - 1995 152 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 ---------------------
98 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (concluded)
LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ----------------------- ----------------- ---------------- WERNER E. KELLER Rydex Series Funds - 2005 152 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 152 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 152 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 152 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 DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) 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 Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Variable Trust, and Rydex (1966) 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 of Rydex Series Assistant Treasurer (1966) 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) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) 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 the Rydex Investments. [RYDEX SGI(SM) LOGO] 9601 Blackwell Road - Suite 500 - Rockville, MD 20850 www.rydex-sgi.com - 800.820.0888 ETF3-SEMI-0409X1009 ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) Based on their evaluation on July 7, 2009, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex ETF 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, and State Street Bank and Trust Company (the "Administrator"), the administrator 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, the Administrator 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, the Administrator, 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 and RI's internal controls over financial reporting, including disclosure controls and procedures (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)(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.