N-CSRS 1 b81547a1nvcsrs.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) Richard M. Goldman, President 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: 1-301-296-5100 Date of fiscal year end: October 31 Date of reporting period: April 30, 2010 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. APRIL 30, 2010 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 ETF [RYDEX LOGO] SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS............................................... 2 FEES AND EXPENSES........................................................ 3 PREMIUM AND DISCOUNT INFORMATION......................................... 4 PORTFOLIO SUMMARY........................................................ 5 SCHEDULES OF INVESTMENTS................................................. 7 STATEMENTS OF ASSETS AND LIABILITIES..................................... 15 STATEMENTS OF OPERATIONS................................................. 16 STATEMENTS OF CHANGES IN NET ASSETS...................................... 17 FINANCIAL HIGHLIGHTS..................................................... 18 NOTES TO FINANCIAL STATEMENTS............................................ 20 SUPPLEMENTAL INFORMATION................................................. 24 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS............................ 25
2 LETTER TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- DEAR SHAREHOLDER, With the economy now showing signs of growth, despite having shrunk 2.4% last year, economic pundits are cautiously optimistic on the U.S. economy. In prepared remarks to the Dallas Regional Chamber, Fed Chairman Ben Bernanke said, "The economy has stabilized and is growing again, although we can hardly be satisfied when one out of every 10 U.S. workers is unemployed and family finances remain under great stress." Minutes of a March 16, 2010 Federal Reserve meeting showed policy makers warned against raising rates too soon because unemployment may hobble a recovery in the world's largest economy. Separately, New York Fed President William Dudley said that the benchmark federal funds rate "needs to be exceptionally low for an extended period to contribute to easier financial conditions to support economic activity." The Fed has kept its target rate for overnight loans between banks at zero to 0.25% since December 2008. STEADY PROGRESS, BUT CERTAINTY STILL ELUSIVE The S&P 500(R) Index returned 15.66% for the six months ended April 30, 2010, while the S&P Equal Weighted Index returned 22.54%. Rydex SGI offers 10 equal weight ETFs which provide equal exposure to relevant indices, ensuring that smaller cap names are weighted as heavily as market giants, therefore eliminating the large-cap bias of traditional capitalization-weighted index products. INCREASED DEMAND FOR ETFS In the past decade, demand for ETFs has increased as institutional investors have found ETFs well suited for participating in, or hedging against, broad movements in the stock market. Individual investors and their financial advisors also have become increasingly aware of these investment vehicles. Assets in ETFs accounted for 6% of total net assets managed by investment companies at year-end 2009, according to The Investment Company Institute.(1) In a regulatory environment that emphasizes transparency and reduced risk, investment professionals are increasingly turning to exchange traded funds (ETFs) -- there were 756 ETFs (a total of $691 billion in assets) in the marketplace in the beginning of the reporting period, and 839 (a total of $805 billion in assets) at the end of the reporting period(1). 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 SGI is a proud participant in the ETF space with more than two dozen exchange traded products. Our exchange traded product asset base grew 20% in the six-month period ended April 30, 2010 -- to $6.7 billion from $5.6 billion. As one of the earlier entrants in the exchange traded product space, we are advocates on the numerous advantages ETFs offer investors. Thank you for the trust you place in us by investing with us. Sincerely, /s/ Michael Byrum Michael Byrum President & Chief Investment Officer PERFORMANCE DISPLAYED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS. FUND PERFORMANCE IS SUBJECT TO DAILY MARKET VOLATILITY AND MAY BE BETTER OR WORSE SINCE THE END OF THE LAST QUARTER. FOR UP-TO-DATE FUND PERFORMANCE, CALL 800.820.0888 OR VISIT WWW.RYDEX-SGI.COM. -------- (1) Investment Company Institute 2010 Investment Company Factbook, p. 46., http://www.ici.org/pdf/2010 factbook.pdf. SEMI-ANNUAL REPORT 3 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, 2009 and held for the six months ended April 30, 2010. 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 10/31/09 4/30/10 10/31/09 TO 4/30/10 ------- --------- --------- ------------------- ACTUAL Rydex S&P Equal Weight ETF................. 0.40% $1,000.00 $1,221.80 $2.20 Rydex Russell Top 50 ETF................... 0.20% 1,000.00 1,112.90 1.05 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). 4 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 period from inception to April 30, 2010. 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 PREMIUM/DISCOUNT RANGE WEIGHT ETF TOP 50 ETF -------------------------------------------------------------------------------------- Greater Than 8% 1 0 Between 3.01% and 8% 0 0 Between 1.01% and 3% 3 3 Between .51% and 1% 7 7 Between .26% and .5% 27 22 Between 0% and .25% 802 671 Between -0.01% and -0.25% 749 635 Between -0.26% and -0.5% 25 24 Between -0.51% and -1% 7 7 Between -1.01% and -3% 2 1 Between -3.01% and -8% 0 0 Less Than -8% 0 0 -------------------------------------------------------------------------------------- Total 1623 1370
PERCENTAGE OF TOTAL DAYS ----------------------- RYDEX RYDEX S&P EQUAL RUSSELL PREMIUM/DISCOUNT RANGE WEIGHT ETF TOP 50 ETF -------------------------------------------------------------------------------------- Greater Than 8% 0.06% 0.00% Between 3.01% and 8% 0.00% 0.00% Between 1.01% and 3% 0.19% 0.22% Between .51% and 1% 0.43% 0.51% Between .26% and .5% 1.66% 1.61% Between 0% and .25% 49.42% 48.98% Between -0.01% and -0.25% 46.15% 46.35% Between -0.26% and -0.5% 1.54% 1.75% Between -0.51% and -1% 0.43% 0.51% Between -1.01% and -3% 0.12% 0.07% Between -3.01% and -8% 0.00% 0.00% Less Than -8% 0.00% 0.00% -------------------------------------------------------------------------------------- Total 100.00% 100.00%
SEMI-ANNUAL REPORT 5 RYDEX S&P EQUAL WEIGHT ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ ZIONS BANCORP 0.25% STARWOOD HOTELS & RESORTS WORLDWIDE, INC. 0.25% FIRST SOLAR, INC. 0.24% MARRIOTT INTERNATIONAL, INC. -- CLASS A 0.24% HUNTINGTON BANCSHARES., INC. 0.24% WHIRLPOOL CORP. 0.24% APARTMENT INVESTMENT & MANAGEMENT CO. -- CLASS A 0.24% SANDISK CORP. 0.24% INTERNATIONAL GAME TECHNOLOGY 0.24% CUMMINS, INC. 0.24% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 16.84 Financials 15.99 Information Technology 14.73 Industrials 11.88 Health Care 9.78 Consumer Staples 7.99 Energy 7.83 Utilities 7.07 Materials 6.12 Telecommunication Services 1.77
* 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. 6 RYDEX RUSSELL TOP 50 ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 6.35% MICROSOFT CORP. 4.51% APPLE, INC. 4.47% GENERAL ELECTRIC CO. 3.83% PROCTER & GAMBLE CO. 3.47% BANK OF AMERICA CORP. 3.40% JOHNSON & JOHNSON, INC. 3.40% WELLS FARGO & CO. 3.29% INTERNATIONAL BUSINESS MACHINES CORP. 3.27% JP MORGAN CHASE & CO. 3.25% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 26.46 Consumer Staples 14.89 Energy 14.23 Health Care 13.85 Financials 13.14 Industrials 7.15 Consumer Discretionary 5.08 Telecommunication Services 4.54 Materials 0.66
* 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 S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS 99.8% AEROSPACE & DEFENSE 2.4% Boeing Co. ............................. 64,950 $4,704,329 General Dynamics Corp. ................. 61,396 4,688,199 Goodrich Corp. ......................... 64,979 4,820,142 Honeywell International, Inc. .......... 105,546 5,010,269 ITT Corp. .............................. 88,050 4,892,938 L-3 Communications Holdings, Inc. ...... 49,285 4,611,597 Lockheed Martin Corp. .................. 53,498 4,541,445 Northrop Grumman Corp. ................. 71,084 4,821,628 Precision Castparts Corp. .............. 38,055 4,883,979 Raytheon Co. ........................... 81,344 4,742,355 Rockwell Collins, Inc. ................. 73,777 4,795,505 United Technologies Corp. .............. 63,177 4,735,116 -------------- TOTAL AEROSPACE & DEFENSE 57,247,502 -------------- AIR FREIGHT & LOGISTICS 0.8% C.H. Robinson Worldwide, Inc. .......... 81,824 4,933,987 Expeditors International of Washington, Inc. ................................ 120,129 4,894,055 FedEx Corp. ............................ 51,106 4,600,051 United Parcel Service, Inc. -- Class B.. 72,125 4,986,723 -------------- TOTAL AIR FREIGHT & LOGISTICS 19,414,816 -------------- AIRLINES 0.2% Southwest Airlines Co. ................. 361,379 4,762,975 -------------- TOTAL AIRLINES 4,762,975 -------------- AUTO COMPONENTS 0.4% Goodyear Tire & Rubber Co.(The)*........ 356,814 4,792,012 Johnson Controls, Inc. ................. 145,442 4,885,397 -------------- TOTAL AUTO COMPONENTS 9,677,409 -------------- AUTOMOBILES 0.4% Ford Motor Co.*......................... 343,627 4,474,023 Harley-Davidson, Inc. .................. 164,219 5,555,529 -------------- TOTAL AUTOMOBILES 10,029,552 -------------- BEVERAGES 1.4% Brown-Forman Corp. -- Class B........... 80,843 4,703,446 Coca-Cola Co.(The)...................... 84,507 4,516,899 Coca-Cola Enterprises, Inc. ............ 172,726 4,789,692 Constellation Brands, Inc. -- Class A*.. 288,493 5,270,767 Dr Pepper Snapple Group, Inc. .......... 128,176 4,195,201 Molson Coors Brewing Co. -- Class B..... 107,097 4,750,823 PepsiCo, Inc. .......................... 69,693 4,545,377 -------------- TOTAL BEVERAGES 32,772,205 -------------- BIOTECHNOLOGY 1.0% Amgen, Inc.*............................ 77,970 4,472,359 Biogen Idec, Inc.*...................... 77,361 4,119,473 Celgene Corp.*.......................... 71,555 4,432,832 Cephalon, Inc.*......................... 63,888 4,101,610 Genzyme Corp.*.......................... 78,051 4,155,435 Gilead Sciences, Inc.*.................. 96,638 3,833,630 -------------- TOTAL BIOTECHNOLOGY 25,115,339 -------------- BUILDING PRODUCTS 0.2% Masco Corp. ............................ 306,231 4,970,129 -------------- TOTAL BUILDING PRODUCTS 4,970,129 -------------- CAPITAL MARKETS 2.7% Ameriprise Financial, Inc. ............. 104,875 4,862,005 Bank of New York Mellon Corp. .......... 150,677 4,690,575 Charles Schwab Corp.(The)............... 246,327 4,751,648 E*TRADE Financial Corp.*................ 2,931,555 4,925,013 Federated Investors, Inc. -- Class B.... 178,693 4,310,075 Franklin Resources, Inc. ............... 41,778 4,831,208 Goldman Sachs Group, Inc.(The).......... 26,194 3,803,369 Invesco Ltd. ........................... 222,766 5,121,390 Janus Capital Group, Inc. .............. 328,850 4,630,208 Legg Mason, Inc. ....................... 157,093 4,978,277 Morgan Stanley.......................... 155,942 4,712,567 Northern Trust Corp. ................... 83,376 4,584,013 State Street Corp. ..................... 100,072 4,353,132 T. Rowe Price Group, Inc. .............. 84,377 4,852,521 -------------- TOTAL CAPITAL MARKETS 65,406,001 -------------- CHEMICALS 2.6% Air Products & Chemicals, Inc. ......... 61,957 4,757,058 Airgas, Inc. ........................... 72,316 4,588,450 CF Industries Holdings, Inc. ........... 50,666 4,239,224 Dow Chemical Co.(The)................... 157,335 4,850,638 Du Pont (E.I.) de Nemours & Co. ........ 126,234 5,029,163 Eastman Chemical Co. ................... 75,579 5,057,747 Ecolab, Inc. ........................... 106,927 5,222,315 FMC Corp. .............................. 77,130 4,908,553 International Flavors & Fragrances, Inc. ................................ 102,864 5,152,458 Monsanto Co. ........................... 64,138 4,044,542 PPG Industries, Inc. ................... 71,345 5,020,548 Praxair, Inc. .......................... 56,742 4,753,277 Sigma-Aldrich Corp. .................... 84,547 5,013,637 -------------- TOTAL CHEMICALS 62,637,610 -------------- COMMERCIAL BANKS 3.0% BB&T Corp. ............................. 145,042 4,821,196 Comerica, Inc. ......................... 121,700 5,111,400 Fifth Third Bancorp..................... 346,960 5,173,174 First Horizon National Corp.*........... 318,812 4,511,190 Huntington Bancshares, Inc. ............ 865,226 5,857,580 KeyCorp................................. 612,394 5,523,794 M&T Bank Corp. ......................... 55,441 4,842,771 Marshall & Ilsley Corp. ................ 596,640 5,429,424 PNC Financial Services Group, Inc. ..... 77,931 5,237,743 Regions Financial Corp. ................ 623,000 5,507,320 SunTrust Banks, Inc. ................... 169,515 5,017,644 U.S. Bancorp............................ 177,921 4,762,945 Wells Fargo & Co. ...................... 152,779 5,058,513 Zions Bancorp........................... 207,250 5,954,292 -------------- TOTAL COMMERCIAL BANKS 72,808,986 -------------- COMMERCIAL SERVICES & SUPPLIES 1.6% Avery Dennison Corp. ................... 133,210 5,199,186 Cintas Corp. ........................... 165,440 4,508,240 Iron Mountain, Inc. .................... 177,902 4,474,235 Pitney Bowes, Inc. ..................... 189,912 4,823,765 R.R. Donnelley & Sons Co. .............. 226,507 4,867,636 Republic Services, Inc. ................ 162,457 5,041,041 Stericycle, Inc.*....................... 83,416 4,913,202 Waste Management, Inc. ................. 135,573 4,701,672 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 38,528,977 -------------- COMMUNICATIONS EQUIPMENT 1.4% Cisco Systems, Inc.*.................... 177,061 4,766,482 Harris Corp. ........................... 100,901 5,194,384 JDS Uniphase Corp.*..................... 423,324 5,498,979 Juniper Networks, Inc.*................. 154,601 4,392,214 Motorola, Inc.*......................... 641,836 4,537,781
See Notes to Financial Statements. 8 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) QUALCOMM, Inc. ......................... 115,685 $4,481,637 Tellabs, Inc. .......................... 614,379 5,578,561 -------------- TOTAL COMMUNICATIONS EQUIPMENT 34,450,038 -------------- COMPUTERS & PERIPHERALS 2.3% Apple, Inc.*............................ 20,849 5,444,091 Dell, Inc.*............................. 323,062 5,227,143 EMC Corp.*.............................. 249,106 4,735,505 Hewlett-Packard Co. .................... 88,390 4,593,628 International Business Machines Corp. .. 36,443 4,701,147 Lexmark International, Inc. -- Class A*............................. 133,791 4,956,957 NetApp, Inc.*........................... 143,100 4,961,277 QLogic Corp.*........................... 233,662 4,526,033 SanDisk Corp.*.......................... 144,161 5,750,582 Teradata Corp.*......................... 160,405 4,662,973 Western Digital Corp.*.................. 121,350 4,986,272 -------------- TOTAL COMPUTERS & PERIPHERALS 54,545,608 -------------- CONSTRUCTION & ENGINEERING 0.6% Fluor Corp. ............................ 102,573 5,419,957 Jacobs Engineering Group, Inc.*......... 107,598 5,188,376 Quanta Services, Inc.*.................. 238,647 4,803,964 -------------- TOTAL CONSTRUCTION & ENGINEERING 15,412,297 -------------- CONSTRUCTION MATERIALS 0.2% Vulcan Materials Co. ................... 95,237 5,455,175 -------------- TOTAL CONSTRUCTION MATERIALS 5,455,175 -------------- CONSUMER FINANCE 0.8% American Express Co. ................... 114,574 5,284,153 Capital One Financial Corp. ............ 115,366 5,008,038 Discover Financial Services............. 303,376 4,690,193 SLM Corp.*.............................. 393,473 4,816,109 -------------- TOTAL CONSUMER FINANCE 19,798,493 -------------- CONTAINERS & PACKAGING 1.0% Ball Corp. ............................. 85,278 4,537,642 Bemis Co., Inc. ........................ 158,014 4,805,206 Owens-Illinois, Inc.*................... 135,384 4,798,009 Pactiv Corp.*........................... 186,491 4,738,736 Sealed Air Corp. ....................... 214,275 4,606,913 -------------- TOTAL CONTAINERS & PACKAGING 23,486,506 -------------- DISTRIBUTORS 0.2% Genuine Parts Co. ...................... 111,221 4,760,259 -------------- TOTAL DISTRIBUTORS 4,760,259 -------------- DIVERSIFIED CONSUMER SERVICES 0.6% Apollo Group, Inc. -- Class A*.......... 72,125 4,140,696 DeVry, Inc. ............................ 69,173 4,315,703 H&R Block, Inc. ........................ 274,499 5,026,077 -------------- TOTAL DIVERSIFIED CONSUMER SERVICES 13,482,476 -------------- DIVERSIFIED FINANCIAL SERVICES 1.8% Bank of America Corp. .................. 274,600 4,896,118 Citigroup, Inc.*........................ 1,171,289 5,118,533 CME Group, Inc. ........................ 14,934 4,904,475 IntercontinentalExchange, Inc.*......... 42,789 4,990,481 JPMorgan Chase & Co. ................... 106,717 4,544,010 Leucadia National Corp.*................ 181,106 4,583,793 Moody's Corp. .......................... 155,562 3,845,493 Nasdaq OMX Group (The)*................. 220,420 4,628,820 NYSE Euronext........................... 157,383 5,135,407 -------------- TOTAL DIVERSIFIED FINANCIAL SERVICES 42,647,130 -------------- DIVERSIFIED TELECOMMUNICATION SERVICES 1.2% AT&T, Inc. ............................. 176,960 4,611,577 CenturyTel, Inc. ....................... 133,161 4,542,122 Frontier Communications Corp. .......... 621,432 4,946,599 Qwest Communications International, Inc. ................................ 914,469 4,782,673 Verizon Communications, Inc. ........... 152,588 4,408,267 Windstream Corp. ....................... 418,693 4,626,558 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 27,917,796 -------------- ELECTRIC UTILITIES 2.7% Allegheny Energy, Inc. ................. 198,560 4,324,637 American Electric Power Co., Inc. ...... 134,312 4,606,901 Duke Energy Corp. ...................... 279,214 4,685,211 Edison International.................... 134,822 4,633,832 Entergy Corp. .......................... 57,582 4,680,841 Exelon Corp. ........................... 104,144 4,539,637 FirstEnergy Corp. ...................... 117,246 4,440,106 FPL Group, Inc. ........................ 96,157 5,004,972 Northeast Utilities..................... 169,815 4,719,159 Pepco Holdings, Inc. ................... 269,325 4,508,500 Pinnacle West Capital Corp. ............ 122,961 4,591,364 PPL Corp. .............................. 163,128 4,039,049 Progress Energy, Inc. .................. 116,716 4,659,303 Southern Co. ........................... 139,007 4,804,082 -------------- TOTAL ELECTRIC UTILITIES 64,237,594 -------------- ELECTRICAL EQUIPMENT 0.9% Emerson Electric Co. ................... 95,507 4,988,330 First Solar, Inc.*...................... 40,967 5,880,813 Rockwell Automation, Inc. .............. 83,876 5,092,951 Roper Industries, Inc. ................. 80,864 4,934,321 -------------- TOTAL ELECTRICAL EQUIPMENT 20,896,415 -------------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 1.2% Agilent Technologies, Inc.*............. 138,716 5,029,842 Amphenol Corp. -- Class A............... 106,507 4,921,688 Corning, Inc. .......................... 236,547 4,553,530 FLIR Systems, Inc.*..................... 170,324 5,210,211 Jabil Circuit, Inc. .................... 267,983 4,105,500 Molex, Inc. ............................ 220,520 4,941,853 -------------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 28,762,624 -------------- ENERGY EQUIPMENT & SERVICES 2.2% Baker Hughes, Inc. ..................... 97,681 4,860,610 Cameron International Corp.*............ 111,371 4,394,700 Diamond Offshore Drilling, Inc. ........ 55,170 4,363,947 FMC Technologies, Inc.*................. 76,540 5,180,992 Halliburton Co. ........................ 151,288 4,636,977 Helmerich & Payne, Inc. ................ 122,371 4,970,710 Nabors Industries, Ltd.*................ 233,872 5,044,619 National-Oilwell Varco, Inc. ........... 109,089 4,803,189 Rowan Cos., Inc.*....................... 175,200 5,220,960 Schlumberger, Ltd. ..................... 72,045 5,145,454 Smith International, Inc. .............. 106,887 5,104,923 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 53,727,081 -------------- FOOD & STAPLES RETAILING 1.8% Costco Wholesale Corp. ................. 76,039 4,492,384 CVS Caremark Corp. ..................... 134,902 4,981,931
See Notes to Financial Statements. SEMI-ANNUAL REPORT 9 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Kroger Co.(The)......................... 213,205 $4,739,547 Safeway, Inc. .......................... 192,145 4,534,622 SUPERVALU, Inc. ........................ 277,812 4,139,399 Sysco Corp. ............................ 161,016 5,078,444 Wal-Mart Stores, Inc. .................. 83,666 4,488,681 Walgreen Co. ........................... 134,552 4,729,503 Whole Foods Market, Inc.*............... 129,807 5,065,069 -------------- TOTAL FOOD & STAPLES RETAILING 42,249,580 -------------- FOOD PRODUCTS 2.7% Archer-Daniels-Midland Co. ............. 160,115 4,473,613 Campbell Soup Co. ...................... 131,489 4,715,196 ConAgra Foods, Inc. .................... 179,513 4,392,683 Dean Foods Co.*......................... 296,782 4,659,477 General Mills, Inc. .................... 63,077 4,489,821 H.J. Heinz Co. ......................... 97,769 4,582,433 Hershey Co.(The)........................ 109,089 5,128,274 Hormel Foods Corp. ..................... 112,102 4,569,278 J.M. Smucker Co.(The)................... 77,450 4,729,871 Kellogg Co. ............................ 87,229 4,792,361 Kraft Foods, Inc. -- Class A............ 156,212 4,623,875 McCormick & Co., Inc. .................. 118,728 4,698,067 Sara Lee Corp. ......................... 333,709 4,745,342 Tyson Foods, Inc. -- Class A............ 260,368 5,100,609 -------------- TOTAL FOOD PRODUCTS 65,700,900 -------------- GAS UTILITIES 0.8% EQT Corp. .............................. 111,411 4,845,264 Nicor, Inc. ............................ 107,117 4,660,661 Oneok, Inc. ............................ 101,022 4,964,221 Questar Corp. .......................... 108,979 5,225,543 -------------- TOTAL GAS UTILITIES 19,695,689 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 2.5% Baxter International, Inc. ............. 78,521 3,707,762 Becton, Dickinson & Co. ................ 58,733 4,485,439 Boston Scientific Corp.*................ 649,580 4,469,110 C.R. Bard, Inc. ........................ 55,360 4,790,301 CareFusion Corp.*....................... 183,537 5,061,951 Dentsply International, Inc. ........... 135,893 4,979,120 Hospira, Inc.*.......................... 81,554 4,386,790 Intuitive Surgical, Inc.*............... 13,202 4,760,113 Medtronic, Inc. ........................ 103,594 4,526,022 St Jude Medical, Inc.*.................. 117,827 4,809,698 Stryker Corp. .......................... 81,894 4,703,991 Varian Medical Systems, Inc.*........... 86,809 4,894,291 Zimmer Holdings, Inc.*.................. 81,454 4,961,363 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 60,535,951 -------------- HEALTH CARE PROVIDERS & SERVICES 3.0% Aetna, Inc. ............................ 134,672 3,979,558 AmerisourceBergen Corp. ................ 162,187 5,003,469 Cardinal Health, Inc. .................. 129,707 4,499,536 CIGNA Corp. ............................ 125,244 4,015,323 Coventry Health Care, Inc.*............. 175,810 4,173,729 DaVita, Inc.*........................... 72,946 4,554,019 Express Scripts, Inc.*.................. 46,082 4,614,191 Humana, Inc.*........................... 92,324 4,221,053 Laboratory Corp. of America Holdings*... 61,476 4,830,169 McKesson Corp. ......................... 72,646 4,708,187 Medco Health Solutions, Inc.*........... 70,534 4,155,863 Patterson Cos., Inc. ................... 150,366 4,810,208 Quest Diagnostics, Inc. ................ 80,953 4,627,274 Tenet Healthcare Corp.*................. 809,372 5,058,575 UnitedHealth Group, Inc. ............... 135,472 4,106,156 WellPoint, Inc.*........................ 71,155 3,828,139 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 71,185,449 -------------- HEALTH CARE TECHNOLOGY 0.2% Cerner Corp.*........................... 58,588 4,974,707 -------------- TOTAL HEALTH CARE TECHNOLOGY 4,974,707 -------------- HOTELS, RESTAURANTS & LEISURE 2.2% Carnival Corp. ......................... 123,402 5,145,863 Darden Restaurants, Inc. ............... 106,116 4,748,691 International Game Technology........... 272,218 5,738,356 Marriott International, Inc. -- Class A.............................. 159,605 5,867,080 McDonald's Corp. ....................... 70,033 4,943,630 Starbucks Corp. ........................ 185,848 4,828,331 Starwood Hotels & Resorts Worldwide, Inc. ................................ 108,649 5,922,457 Wyndham Worldwide Corp. ................ 193,636 5,191,381 Wynn Resorts Ltd. ...................... 64,429 5,685,215 Yum! Brands, Inc. ...................... 121,801 5,166,798 -------------- TOTAL HOTELS, RESTAURANTS & LEISURE 53,237,802 -------------- HOUSEHOLD DURABLES 1.9% D.R. Horton, Inc. ...................... 367,036 5,391,759 Fortune Brands, Inc. ................... 93,856 4,919,932 Harman International Industries, Inc.*.. 105,626 4,170,114 Leggett & Platt, Inc. .................. 216,106 5,301,080 Lennar Corp. -- Class A................. 283,961 5,650,824 Newell Rubbermaid, Inc. ................ 301,364 5,144,283 Pulte Homes, Inc.*...................... 408,606 5,348,653 Stanley Black & Decker, Inc. ........... 79,492 4,940,428 Whirlpool Corp. ........................ 53,709 5,847,299 -------------- TOTAL HOUSEHOLD DURABLES 46,714,372 -------------- HOUSEHOLD PRODUCTS 0.8% Clorox Co. ............................. 71,955 4,655,489 Colgate-Palmolive Co. .................. 54,770 4,606,157 Kimberly-Clark Corp. ................... 75,769 4,641,609 Procter & Gamble Co. ................... 72,626 4,514,432 -------------- TOTAL HOUSEHOLD PRODUCTS 18,417,687 -------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.6% AES Corp.(The)*......................... 404,457 4,667,434 Constellation Energy Group, Inc. ....... 128,217 4,532,471 NRG Energy, Inc.*....................... 211,281 5,106,662 -------------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 14,306,567 -------------- INDUSTRIAL CONGLOMERATES 0.6% 3M Co. ................................. 56,451 5,005,510 General Electric Co. ................... 256,983 4,846,699 Textron, Inc. .......................... 206,920 4,726,053 -------------- TOTAL INDUSTRIAL CONGLOMERATES 14,578,262 -------------- INSURANCE 4.1% AFLAC, Inc. ............................ 85,178 4,340,671 Allstate Corp. ......................... 148,735 4,859,173 American International Group, Inc.*..... 135,161 5,257,763 Aon Corp. .............................. 109,009 4,628,522 Assurant, Inc. ......................... 139,617 5,086,247 Berkshire Hathaway, Inc. -- Class B*.... 56,431 4,345,187 Chubb Corp. ............................ 90,271 4,772,628 Cincinnati Financial Corp. ............. 157,873 4,483,593
See Notes to Financial Statements. 10 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Genworth Financial, Inc. -- Class A*.... 288,587 $4,767,457 Hartford Financial Services Group, Inc. ................................ 169,984 4,856,443 Lincoln National Corp. ................. 160,256 4,902,231 Loews Corp. ............................ 124,703 4,643,940 Marsh & McLennan Cos., Inc. ............ 188,131 4,556,533 MetLife, Inc. .......................... 110,451 5,034,357 Principal Financial Group, Inc. ........ 168,974 4,937,420 Progressive Corp. ...................... 256,583 5,154,753 Prudential Financial, Inc. ............. 79,663 5,063,380 Torchmark Corp. ........................ 86,959 4,655,785 Travelers Cos., Inc.(The)............... 87,469 4,438,177 Unum Group.............................. 193,486 4,734,602 XL Capital, Ltd. -- Class A............. 244,154 4,345,941 -------------- TOTAL INSURANCE 99,864,803 -------------- INTERNET & CATALOG RETAIL 0.6% Amazon.com, Inc.*....................... 35,562 4,874,127 Expedia, Inc. .......................... 204,426 4,826,498 Priceline.com, Inc.*.................... 19,358 5,072,764 -------------- TOTAL INTERNET & CATALOG RETAIL 14,773,389 -------------- INTERNET SOFTWARE & SERVICES 1.0% Akamai Technologies, Inc.*.............. 147,374 5,722,532 eBay, Inc.*............................. 169,745 4,041,629 Google, Inc. -- Class A*................ 8,318 4,370,610 VeriSign, Inc.*......................... 173,297 4,725,809 Yahoo!, Inc.*........................... 281,586 4,654,617 -------------- TOTAL INTERNET SOFTWARE & SERVICES 23,515,197 -------------- IT SERVICES 2.1% Automatic Data Processing, Inc. ........ 103,554 4,490,101 Cognizant Technology Solutions Corp. -- Class A*.................... 90,462 4,629,845 Computer Sciences Corp.*................ 85,097 4,458,232 Fidelity National Information Services, Inc. ................................ 196,908 5,176,711 Fiserv, Inc.*........................... 91,233 4,661,094 Mastercard, Inc. -- Class A............. 18,967 4,704,575 Paychex, Inc. .......................... 144,311 4,415,916 SAIC, Inc.*............................. 245,160 4,268,236 Total System Services, Inc. ............ 306,668 4,909,755 Visa, Inc. -- Class A................... 52,077 4,698,908 Western Union Co. ...................... 278,963 5,091,075 -------------- TOTAL IT SERVICES 51,504,448 -------------- LEISURE EQUIPMENT & PRODUCTS 0.6% Eastman Kodak Co.*...................... 787,958 4,822,303 Hasbro, Inc. ........................... 121,801 4,672,286 Mattel, Inc. ........................... 199,402 4,596,216 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 14,090,805 -------------- LIFE SCIENCES TOOLS & SERVICES 1.0% Life Technologies Corp.*................ 86,499 4,732,360 Millipore Corp.*........................ 43,960 4,666,354 PerkinElmer, Inc. ...................... 193,988 4,859,399 Thermo Fisher Scientific, Inc.*......... 92,764 5,127,994 Waters Corp.*........................... 71,245 5,128,928 -------------- TOTAL LIFE SCIENCES TOOLS & SERVICES 24,515,035 -------------- MACHINERY 2.5% Caterpillar, Inc. ...................... 78,311 5,332,196 Cummins, Inc. .......................... 79,372 5,733,039 Danaher Corp. .......................... 60,175 5,071,549 Deere & Co. ............................ 78,261 4,681,573 Dover Corp. ............................ 99,390 5,190,146 Eaton Corp. ............................ 62,317 4,808,380 Flowserve Corp. ........................ 44,170 5,060,999 Illinois Tool Works, Inc. .............. 99,090 5,063,499 PACCAR, Inc. ........................... 110,260 5,129,295 Pall Corp. ............................. 120,029 4,679,931 Parker-Hannifin Corp. .................. 71,035 4,914,201 Snap-on, Inc. .......................... 108,108 5,208,643 -------------- TOTAL MACHINERY 60,873,451 -------------- MEDIA 3.5% CBS Corp. -- Class B.................... 329,391 5,339,428 Comcast Corp. -- Class A................ 265,870 5,248,274 DIRECTV -- Class A*..................... 140,166 5,078,214 Discovery Communications, Inc. -- Class A*............................. 143,010 5,534,487 Gannett Co., Inc. ...................... 283,432 4,824,013 Interpublic Group of Cos., Inc.*........ 536,839 4,783,235 McGraw-Hill Cos., Inc. ................. 129,348 4,361,615 Meredith Corp. ......................... 135,023 4,851,376 New York Times Co. -- Class A*.......... 417,131 4,137,940 News Corp. -- Class A................... 330,441 5,095,400 Omnicom Group, Inc. .................... 118,638 5,061,097 Scripps Networks Interactive -- Class A.............................. 112,592 5,104,921 Time Warner Cable, Inc. ................ 95,406 5,366,588 Time Warner, Inc. ...................... 148,735 4,920,154 Viacom, Inc. -- Class B*................ 146,553 5,177,717 Walt Disney Co.(The).................... 137,945 5,081,894 Washington Post Co. -- Class B.......... 10,289 5,218,169 -------------- TOTAL MEDIA 85,184,522 -------------- METALS & MINING 1.7% AK Steel Holding Corp. ................. 208,781 3,497,082 Alcoa, Inc. ............................ 324,395 4,359,869 Allegheny Technologies, Inc. ........... 90,422 4,834,864 Cliffs Natural Resources, Inc. ......... 72,416 4,528,173 Freeport-McMoRan Copper & Gold, Inc. ... 58,644 4,429,381 Newmont Mining Corp. ................... 90,943 5,100,084 Nucor Corp. ............................ 104,495 4,735,713 Titanium Metals Corp.*.................. 314,296 4,846,444 United States Steel Corp. .............. 78,101 4,269,001 -------------- TOTAL METALS & MINING 40,600,611 -------------- MULTI-UTILITIES 3.0% Ameren Corp. ........................... 178,592 4,636,248 CenterPoint Energy, Inc. ............... 320,412 4,601,116 CMS Energy Corp. ....................... 294,116 4,782,326 Consolidated Edison, Inc. .............. 104,985 4,745,322 Dominion Resources, Inc. ............... 114,293 4,777,447 DTE Energy Co. ......................... 103,093 4,965,990 Integrys Energy Group, Inc. ............ 100,541 4,987,839 NiSource, Inc. ......................... 296,048 4,825,582 PG&E Corp. ............................. 107,537 4,710,121 Public Service Enterprise Group, Inc. .. 150,226 4,826,761 SCANA Corp. ............................ 122,521 4,835,904 Sempra Energy........................... 91,843 4,516,839 TECO Energy, Inc. ...................... 292,675 4,954,988 Wisconsin Energy Corp. ................. 91,993 4,830,553 Xcel Energy, Inc. ...................... 215,075 4,677,881 -------------- TOTAL MULTI-UTILITIES 71,674,917 --------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 11 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) MULTILINE RETAIL 1.6% Big Lots, Inc.*......................... 126,665 $4,838,603 Family Dollar Stores, Inc. ............. 129,428 5,120,172 J.C. Penney Co., Inc. .................. 147,244 4,295,107 Kohl's Corp.*........................... 83,946 4,616,190 Macy's, Inc. ........................... 220,809 5,122,769 Nordstrom, Inc. ........................ 114,094 4,715,505 Sears Holdings Corp.*................... 44,881 5,428,357 Target Corp. ........................... 86,979 4,946,496 -------------- TOTAL MULTILINE RETAIL 39,083,199 -------------- OFFICE ELECTRONICS 0.2% Xerox Corp. ............................ 482,630 5,260,667 -------------- TOTAL OFFICE ELECTRONICS 5,260,667 -------------- OIL, GAS & CONSUMABLE FUELS 5.6% Anadarko Petroleum Corp. ............... 66,260 4,118,722 Apache Corp. ........................... 45,491 4,629,164 Cabot Oil & Gas Corp. .................. 120,950 4,369,923 Chesapeake Energy Corp. ................ 192,704 4,586,355 Chevron Corp. .......................... 62,256 5,070,129 ConocoPhillips.......................... 88,620 5,245,418 CONSOL Energy, Inc. .................... 100,742 4,501,153 Denbury Resources, Inc.*................ 299,072 5,727,229 Devon Energy Corp. ..................... 71,795 4,833,957 El Paso Corp. .......................... 415,118 5,022,928 EOG Resources, Inc. .................... 50,606 5,673,945 Exxon Mobil Corp. ...................... 69,333 4,704,244 Hess Corp. ............................. 76,109 4,836,727 Marathon Oil Corp. ..................... 145,532 4,678,854 Massey Energy Co. ...................... 91,484 3,351,059 Murphy Oil Corp. ....................... 84,497 5,082,494 Noble Energy, Inc. ..................... 63,178 4,826,799 Occidental Petroleum Corp. ............. 56,281 4,989,873 Peabody Energy Corp. ................... 98,570 4,605,190 Pioneer Natural Resources Co. .......... 87,819 5,631,832 Range Resources Corp. .................. 96,448 4,606,356 Southwestern Energy Co.*................ 116,316 4,615,419 Spectra Energy Corp. ................... 208,409 4,864,266 Sunoco, Inc. ........................... 156,301 5,123,547 Tesoro Corp. ........................... 337,984 4,444,490 Valero Energy Corp. .................... 229,157 4,764,174 Williams Cos., Inc.(The)................ 206,277 4,870,200 XTO Energy, Inc. ....................... 98,259 4,669,268 -------------- TOTAL OIL, GAS & CONSUMABLE FUELS 134,443,715 -------------- PAPER & FOREST PRODUCTS 0.6% International Paper Co. ................ 178,503 4,773,170 MeadWestvaco Corp. ..................... 185,069 5,028,325 Weyerhaeuser Co. ....................... 104,475 5,173,602 -------------- TOTAL PAPER & FOREST PRODUCTS 14,975,097 -------------- PERSONAL PRODUCTS 0.6% Avon Products, Inc. .................... 144,861 4,683,356 Estee Lauder Cos., Inc -- Class A....... 73,487 4,844,263 Mead Johnson Nutrition Co. ............. 90,312 4,661,003 -------------- TOTAL PERSONAL PRODUCTS 14,188,622 -------------- PHARMACEUTICALS 2.0% Abbott Laboratories..................... 86,389 4,419,661 Allergan, Inc. ......................... 72,336 4,607,080 Bristol-Myers Squibb Co. ............... 177,602 4,491,555 Eli Lilly & Co. ........................ 127,886 4,472,173 Forest Laboratories, Inc.*.............. 149,046 4,062,994 Johnson & Johnson, Inc. ................ 71,325 4,586,198 King Pharmaceuticals, Inc.*............. 377,875 3,703,175 Merck & Co., Inc. ...................... 121,531 4,258,446 Mylan, Inc.*............................ 204,697 4,509,475 Pfizer, Inc. ........................... 273,049 4,565,379 Watson Pharmaceuticals, Inc.*........... 114,244 4,891,928 -------------- TOTAL PHARMACEUTICALS 48,568,064 -------------- PROFESSIONAL SERVICES 0.8% Dun & Bradstreet Corp. ................. 62,567 4,815,782 Equifax, Inc. .......................... 130,888 4,397,837 Monster Worldwide, Inc.*................ 276,592 4,820,999 Robert Half International, Inc. ........ 148,735 4,072,364 -------------- TOTAL PROFESSIONAL SERVICES 18,106,982 -------------- REAL ESTATE INVESTMENT TRUSTS (REITS) 2.9% Apartment Investment & Management Co. -- Class A....................... 257,835 5,778,082 AvalonBay Communities, Inc. ............ 52,808 5,494,144 Boston Properties, Inc. ................ 60,935 4,805,334 Equity Residential...................... 117,927 5,338,555 HCP, Inc. .............................. 139,537 4,481,929 Health Care REIT, Inc. ................. 101,402 4,555,992 Host Hotels & Resorts, Inc. ............ 339,361 5,518,010 Kimco Realty Corp. ..................... 298,500 4,653,615 Plum Creek Timber Co., Inc. ............ 120,570 4,798,686 ProLogis................................ 326,560 4,300,795 Public Storage, Inc. ................... 50,776 4,920,702 Simon Property Group, Inc. ............. 54,940 4,890,759 Ventas, Inc. ........................... 98,069 4,631,799 Vornado Realty Trust.................... 61,496 5,126,922 -------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 69,295,324 -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% CB Richard Ellis Group, Inc. -- Class A*............................. 311,216 5,390,261 -------------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 5,390,261 -------------- ROAD & RAIL 0.9% CSX Corp. .............................. 90,292 5,060,867 Norfolk Southern Corp. ................. 83,756 4,969,243 Ryder System, Inc. ..................... 120,449 5,603,288 Union Pacific Corp. .................... 63,267 4,786,781 -------------- TOTAL ROAD & RAIL 20,420,179 -------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.6% Advanced Micro Devices, Inc.*........... 504,902 4,574,412 Altera Corp. ........................... 187,031 4,743,106 Analog Devices, Inc. ................... 155,241 4,646,363 Applied Materials, Inc. ................ 370,297 5,102,693 Broadcom Corp. -- Class A............... 137,815 4,753,239 Intel Corp. ............................ 211,201 4,821,719 KLA-Tencor Corp. ....................... 160,406 5,463,428 Linear Technology Corp. ................ 163,548 4,916,253 LSI Corp.*.............................. 717,557 4,319,693 MEMC Electronic Materials, Inc.*........ 327,606 4,249,050 Microchip Technology, Inc. ............. 163,859 4,786,322 Micron Technology, Inc.*................ 462,553 4,324,871 National Semiconductor Corp. ........... 319,309 4,719,387 Novellus Systems, Inc.*................. 200,161 5,244,218 NVIDIA Corp.*........................... 268,504 4,220,883 Teradyne, Inc.*......................... 437,875 5,355,211
See Notes to Financial Statements. 12 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONCLUDED) Texas Instruments, Inc. ................ 189,883 $4,938,857 Xilinx, Inc. ........................... 174,568 4,500,363 -------------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 85,680,068 -------------- SOFTWARE 2.9% Adobe Systems, Inc.*.................... 133,461 4,482,955 Autodesk, Inc.*......................... 159,205 5,414,562 BMC Software, Inc.*..................... 117,767 4,635,309 CA, Inc. ............................... 198,190 4,520,714 Citrix Systems, Inc.*................... 95,807 4,502,929 Compuware Corp.*........................ 533,726 4,590,044 Electronic Arts, Inc.*.................. 251,538 4,872,291 Intuit, Inc.*........................... 134,152 4,850,936 McAfee, Inc.*........................... 112,522 3,910,139 Microsoft Corp. ........................ 157,102 4,797,895 Novell, Inc.*........................... 813,376 4,563,039 Oracle Corp. ........................... 184,927 4,778,514 Red Hat, Inc.*.......................... 154,600 4,617,902 Salesforce.com, Inc.*................... 60,915 5,214,324 Symantec Corp.*......................... 269,175 4,514,065 -------------- TOTAL SOFTWARE 70,265,618 -------------- SPECIALTY RETAIL 3.9% Abercrombie & Fitch Co. -- Class A...... 105,206 4,600,658 AutoNation, Inc.*....................... 252,427 5,099,025 AutoZone, Inc.*......................... 26,824 4,962,708 Bed Bath & Beyond, Inc.*................ 105,986 4,871,117 Best Buy Co., Inc. ..................... 112,563 5,132,873 GameStop Corp. -- Class A*.............. 218,529 5,312,440 Gap, Inc.(The).......................... 199,931 4,944,294 Home Depot, Inc. ....................... 142,930 5,038,283 Limited Brands, Inc. ................... 188,421 5,049,683 Lowe's Cos., Inc. ...................... 186,320 5,052,998 O'Reilly Automotive, Inc.*.............. 110,070 5,381,322 Office Depot, Inc.*..................... 587,933 4,033,220 RadioShack Corp. ....................... 213,051 4,591,249 Ross Stores, Inc. ...................... 86,338 4,834,928 Sherwin-Williams Co.(The)............... 70,864 5,532,353 Staples, Inc. .......................... 193,967 4,564,044 Tiffany & Co. .......................... 98,469 4,773,777 TJX Cos., Inc. ......................... 107,768 4,993,969 Urban Outfitters, Inc.*................. 130,128 4,881,101 -------------- TOTAL SPECIALTY RETAIL 93,650,042 -------------- TEXTILES, APPAREL & LUXURY GOODS 0.8% Coach, Inc. ............................ 122,371 5,108,989 NIKE, Inc. -- Class B................... 62,947 4,778,307 Polo Ralph Lauren Corp. ................ 55,971 5,031,793 V.F. Corp. ............................. 58,123 5,022,990 -------------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 19,942,079 -------------- THRIFTS & MORTGAGE FINANCE 0.4% Hudson City Bancorp, Inc. .............. 333,774 4,439,194 People's United Financial, Inc. ........ 294,217 4,569,190 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 9,008,384 -------------- TOBACCO 0.8% Altria Group, Inc. ..................... 227,837 4,827,866 Lorillard, Inc. ........................ 60,415 4,734,723 Philip Morris International, Inc. ...... 88,320 4,334,746 Reynolds American, Inc. ................ 86,709 4,631,995 -------------- TOTAL TOBACCO 18,529,330 -------------- TRADING COMPANIES & DISTRIBUTORS 0.4% Fastenal Co. ........................... 99,050 5,417,045 W.W. Grainger, Inc. .................... 43,249 4,780,744 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 10,197,789 -------------- WIRELESS TELECOMMUNICATION SERVICES 0.6% American Tower Corp. -- Class A*........ 104,585 4,268,114 MetroPCS Communications, Inc.*.......... 659,547 5,032,344 Sprint Nextel Corp.*.................... 1,237,910 5,261,117 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 14,561,575 -------------- TOTAL COMMON STOCKS (Cost $2,184,196,334) 2,402,712,132 -------------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....... 3,273,494 3,273,494 -------------- TOTAL SHORT TERM INVESTMENTS (Cost $3,273,494) 3,273,494 -------------- TOTAL INVESTMENTS 99.9%(A) (Cost $2,187,469,828) 2,405,985,626 -------------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 2,531,666 -------------- NET ASSETS--100.0% $2,408,517,292 ----------------------------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 13 RYDEX RUSSELL TOP 50 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS 99.7% AEROSPACE & DEFENSE 1.2% United Technologies Corp. ..... 55,790 $4,181,461 ------------ TOTAL AEROSPACE & DEFENSE 4,181,461 ------------ AIR FREIGHT & LOGISTICS 0.9% United Parcel Service, Inc. -- Class B............. 46,121 3,188,806 ------------ TOTAL AIR FREIGHT & LOGISTICS 3,188,806 ------------ BEVERAGES 4.4% Coca-Cola Co.(The)............. 154,391 8,252,199 PepsiCo, Inc. ................. 107,787 7,029,868 ------------ TOTAL BEVERAGES 15,282,067 ------------ BIOTECHNOLOGY 1.8% Amgen, Inc.*................... 67,512 3,872,488 Gilead Sciences, Inc.*......... 60,452 2,398,131 ------------ TOTAL BIOTECHNOLOGY 6,270,619 ------------ CAPITAL MARKETS 2.2% Goldman Sachs Group, Inc.(The)................... 33,578 4,875,526 Morgan Stanley................. 90,642 2,739,201 ------------ TOTAL CAPITAL MARKETS 7,614,727 ------------ CHEMICALS 0.7% Monsanto Co. .................. 36,393 2,294,943 ------------ TOTAL CHEMICALS 2,294,943 ------------ COMMERCIAL BANKS 4.3% U.S. Bancorp................... 126,551 3,387,770 Wells Fargo & Co. ............. 345,235 11,430,731 ------------ TOTAL COMMERCIAL BANKS 14,818,501 ------------ COMMUNICATIONS EQUIPMENT 4.2% Cisco Systems, Inc.*........... 384,660 10,355,047 QUALCOMM, Inc. ................ 110,373 4,275,850 ------------ TOTAL COMMUNICATIONS EQUIPMENT 14,630,897 ------------ COMPUTERS & PERIPHERALS 10.1% Apple, Inc.*................... 59,494 15,535,073 Hewlett-Packard Co. ........... 159,487 8,288,540 International Business Machines Corp. ...................... 88,123 11,367,867 ------------ TOTAL COMPUTERS & PERIPHERALS 35,191,480 ------------ DIVERSIFIED FINANCIAL SERVICES 6.7% Bank of America Corp. ......... 663,261 11,825,944 JPMorgan Chase & Co. .......... 265,268 11,295,111 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 23,121,055 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 4.5% AT&T, Inc. .................... 393,480 10,254,089 Verizon Communications, Inc. .. 189,440 5,472,921 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 15,727,010 ------------ ENERGY EQUIPMENT & SERVICES 1.6% Schlumberger, Ltd. ............ 79,788 5,698,459 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 5,698,459 ------------ FOOD & STAPLES RETAILING 3.3% CVS Caremark Corp. ............ 97,091 3,585,570 Wal-Mart Stores, Inc. ......... 147,438 7,910,049 ------------ TOTAL FOOD & STAPLES RETAILING 11,495,619 ------------ FOOD PRODUCTS 1.0% Kraft Foods, Inc. -- Class A... 115,283 3,412,377 ------------ TOTAL FOOD PRODUCTS 3,412,377 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 0.9% Medtronic, Inc. ............... 74,644 3,261,196 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 3,261,196 ------------ HOTELS, RESTAURANTS & LEISURE 1.5% McDonald's Corp. .............. 73,576 5,193,730 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 5,193,730 ------------ HOUSEHOLD PRODUCTS 3.5% Procter & Gamble Co. .......... 194,378 12,082,537 ------------ TOTAL HOUSEHOLD PRODUCTS 12,082,537 ------------ INDUSTRIAL CONGLOMERATES 5.0% 3M Co. ........................ 46,309 4,106,219 General Electric Co. .......... 706,222 13,319,347 ------------ TOTAL INDUSTRIAL CONGLOMERATES 17,425,566 ------------ INTERNET SOFTWARE & SERVICES 2.4% Google, Inc. -- Class A*....... 15,970 8,391,277 ------------ TOTAL INTERNET SOFTWARE & SERVICES 8,391,277 ------------ IT SERVICES 0.8% Visa, Inc. -- Class A.......... 29,963 2,703,562 ------------ TOTAL IT SERVICES 2,703,562 ------------ MEDIA 2.4% Comcast Corp. -- Class A....... 191,713 3,784,415 Walt Disney Co.(The)........... 126,255 4,651,234 ------------ TOTAL MEDIA 8,435,649 ------------ OIL, GAS & CONSUMABLE FUELS 12.5% Chevron Corp. ................. 133,692 10,887,876 ConocoPhillips................. 98,808 5,848,446 Exxon Mobil Corp. ............. 325,433 22,080,629 Occidental Petroleum Corp. .... 54,062 4,793,137 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 43,610,088 ------------ PHARMACEUTICALS 11.1% Abbott Laboratories............ 103,066 5,272,857 Bristol-Myers Squibb Co. ...... 114,146 2,886,752 Eli Lilly & Co. ............... 67,591 2,363,657 Johnson & Johnson, Inc. ....... 183,771 11,816,475 Merck & Co., Inc. ............. 203,376 7,126,295 Pfizer, Inc. .................. 537,629 8,989,157 ------------ TOTAL PHARMACEUTICALS 38,455,193 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.4% Intel Corp. ................... 372,463 8,503,330 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 8,503,330 ------------ SOFTWARE 6.4% Microsoft Corp. ............... 513,996 15,697,438 Oracle Corp. .................. 254,909 6,586,848 ------------ TOTAL SOFTWARE 22,284,286 ------------ SPECIALTY RETAIL 1.2% Home Depot, Inc. .............. 113,120 3,987,480 ------------ TOTAL SPECIALTY RETAIL 3,987,480 ------------
See Notes to Financial Statements. 14 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONCLUDED) TOBACCO 2.7% Altria Group, Inc. ............ 137,889 $2,921,868 Philip Morris International, Inc. ....................... 130,818 6,420,547 ------------ TOTAL TOBACCO 9,342,415 ------------ TOTAL COMMON STOCKS (Cost $391,977,776) 346,604,330 ------------ SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund........................ 408,791 408,791 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $408,791) 408,791 ------------ TOTAL INVESTMENTS 99.8%(A) (Cost $392,386,567) 347,013,121 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.2% 814,820 ------------ NET ASSETS--100.0% $347,827,941 ---------------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P EQUAL RYDEX RUSSELL WEIGHT ETF TOP 50 ETF --------------- ------------- ASSETS Investments at Market Value*............................. $2,405,985,626 $347,013,121 Cash..................................................... 1,942,343 418,608 Receivables: Investments Sold....................................... 31,401,963 -- Fund Shares Sold....................................... 2,228,913 -- Dividends.............................................. 1,661,952 453,873 -------------- ------------ TOTAL ASSETS........................................ 2,443,220,797 347,885,602 -------------- ------------ LIABILITIES Payables: Investments Purchased.................................. 9,457,323 -- Fund Shares Repurchased................................ 24,474,363 -- Accrued Management Fees................................ 771,819 57,661 -------------- ------------ TOTAL LIABILITIES................................... 34,703,505 57,661 -------------- ------------ NET ASSETS............................................... $2,408,517,292 $347,827,941 ============== ============ NET ASSETS CONSIST OF: Paid-in Capital.......................................... $2,654,083,093 $479,071,080 Undistributed Net Investment Income...................... 1,163,573 544,466 Accumulated Net Realized Loss on Investment Securities... (465,245,172) (86,414,159) Net Unrealized Appreciation (Depreciation) on Investment Securities............................................. 218,515,798 (45,373,446) -------------- ------------ NET ASSETS............................................... $2,408,517,292 $347,827,941 ============== ============ Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................................. 55,108,863 4,000,785 ============== ============ Net Asset Value, Offering Price and Repurchase Price Per Share.................................................. $ 43.70 $ 86.94 ============== ============ *Total Cost of Investments............................... $2,187,469,828 $392,386,567 ============== ============
See Notes to Financial Statements. 16 STATEMENT OF OPERATIONS (Unaudited) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P EQUAL RYDEX RUSSELL WEIGHT ETF TOP 50 ETF --------------- ------------- INVESTMENT INCOME Dividends.............................................. $ 16,524,046 $ 3,807,789 ------------ ----------- EXPENSES Management Fee......................................... 3,701,264 338,416 ------------ ----------- Net Investment Income.................................... 12,822,782 3,469,373 ------------ ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments............................................ (25,566,510) (900,255) In-kind Redemptions.................................... 84,938,605 2,316,892 ------------ ----------- Net Realized Gain................................... 59,372,095 1,416,637 Net Change in Unrealized Appreciation on: Investment Securities.................................. 279,908,464 31,142,426 ------------ ----------- Net Realized and Unrealized Gain on Investments.......... 339,280,559 32,559,063 ------------ ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................ $352,103,341 $36,028,436 ============ ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 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, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 12,822,782 $ 17,788,125 $ 3,469,373 $ 9,973,248 Net Realized Gain (Loss)......... 59,372,095 (285,269,706) 1,416,637 (99,874,399) Net Change in Unrealized Appreciation on Investments... 279,908,464 498,523,486 31,142,426 79,986,595 -------------- -------------- ------------ ------------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... 352,103,341 231,041,905 36,028,436 (9,914,556) -------------- -------------- ------------ ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (11,718,607) (17,303,063) (3,516,862) (10,220,260) -------------- -------------- ------------ ------------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 993,365,553 1,265,540,179 25,240,764 218,923,660 Value of Shares Purchased through Dividend Reinvestments........ 10,909 21,599 9,726 27,664 Value of Shares Redeemed......... (424,594,421) (823,367,019) (25,596,182) (318,032,504) -------------- -------------- ------------ ------------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. 568,782,041 442,194,759 (345,692) (99,081,180) -------------- -------------- ------------ ------------- Increase (Decrease) in Net Assets...................... 909,166,775 655,933,601 32,165,882 (119,215,996) NET ASSETS--BEGINNING OF PERIOD.... 1,499,350,517 843,416,916 315,662,059 434,878,055 -------------- -------------- ------------ ------------- NET ASSETS--END OF PERIOD(1)....... $2,408,517,292 $1,499,350,517 $347,827,941 $ 315,662,059 ============== ============== ============ ============= (1) Including Undistributed Net Investment Income................ $ 1,163,573 $ 59,398 $ 544,466 $ 591,955 ============== ============== ============ ============= CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 24,150,000 40,900,000 300,000 3,100,000 Shares Purchased through Dividend Reinvestments................. 267 745 115 394 Shares Redeemed.................. (10,700,000) (27,350,000) (300,000) (4,800,000) Shares Outstanding, Beginning of Period........................ 41,658,596 28,107,851 4,000,670 5,700,276 -------------- -------------- ------------ ------------- Shares Outstanding, End of Period........................ 55,108,863 41,658,596 4,000,785 4,000,670 ============== ============== ============ =============
See Notes to Financial Statements. 18 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.. $ 35.99 $ 30.01 $ 50.63 ---------- ---------- -------- Net Investment Income*.............. 0.28 0.54 0.72 Net Realized and Unrealized Gain (Loss) on Investments.......... 7.68 5.98 (20.64) ---------- ---------- -------- TOTAL FROM INVESTMENT OPERATIONS........... 7.96 6.52 (19.92) ---------- ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.. (0.25) (0.54) (0.70) ---------- ---------- -------- NET ASSET VALUE AT END OF PERIOD............ $ 43.70 $ 35.99 $ 30.01 ========== ========== ======== TOTAL RETURN**......... 22.18% 22.21% (39.75)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $2,408,517 $1,499,351 $843,417 RATIO TO AVERAGE NET ASSETS OF: Expenses............... 0.40%*** 0.40% 0.40% Net Investment Income.. 1.39%*** 1.75% 1.65% Portfolio Turnover Rate+................ 10% 37% 32% RYDEX S&P EQUAL WEIGHT ETF ---------------------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2007 OCTOBER 31, 2006(1) OCTOBER 31, 2005(1) ---------------- ------------------- ------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.. $ 46.06 $ 39.68 $ 35.70 ---------- ---------- ---------- Net Investment Income*.............. 0.59 0.52 0.43 Net Realized and Unrealized Gain (Loss) on Investments.......... 4.56 6.36 3.95 ---------- ---------- ---------- TOTAL FROM INVESTMENT OPERATIONS........... 5.15 6.88 4.38 ---------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.. (0.58) (0.50) (0.40) ---------- ---------- ---------- NET ASSET VALUE AT END OF PERIOD............ $ 50.63 $ 46.06 $ 39.68 ========== ========== ========== TOTAL RETURN**......... 11.23% 17.42% 12.29% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $2,177,693 $1,759,797 $1,071,410 RATIO TO AVERAGE NET ASSETS OF: Expenses............... 0.40% 0.40% 0.40% Net Investment Income.. 1.22% 1.21% 1.11% Portfolio Turnover Rate+................ 25% 16% 22%
* 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) All per share information representing data prior to April 26, 2006 has been adjusted for the effect of a 4 for 1 share split which occurred on April 26, 2006. + 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 19 FINANCIAL HIGHLIGHTS (concluded) --------------------------------------------------------------------------------
RYDEX RUSSELL TOP 50 ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 ---------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............. $ 78.90 $ 76.29 $ 116.47 -------- -------- -------- Net Investment Income**.. 0.86 1.95 2.34 Net Realized and Unrealized Gain (Loss) on Investments......... 8.03 2.61 (40.20) -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS............. 8.89 4.56 (37.86) -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (0.85) (1.95) (2.32) -------- -------- -------- NET ASSET VALUE AT END OF PERIOD................. $ 86.94 $ 78.90 $ 76.29 ======== ======== ======== TOTAL RETURN***.......... 11.29% 6.35% (32.92)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $347,828 $315,662 $434,878 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.20%**** 0.20% 0.20% Net Investment Income.... 2.05%**** 2.79% 2.37% Portfolio Turnover Rate+.................. 1% 12% 10% RYDEX RUSSELL TOP 50 ETF ----------------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2007 OCTOBER 31, 2006 OCTOBER 31, 2005* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............. $ 104.15 $ 91.39 $ 91.51 -------- -------- -------- Net Investment Income**.. 2.15 1.92 0.79 Net Realized and Unrealized Gain (Loss) on Investments......... 12.25 12.71 (0.46) -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS............. 14.40 14.63 0.33 -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (2.08) (1.87) (0.45) -------- -------- -------- NET ASSET VALUE AT END OF PERIOD................. $ 116.47 $ 104.15 $ 91.39 ======== ======== ======== TOTAL RETURN***.......... 13.96% 16.18% 0.36% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $681,355 $364,541 $137,085 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.20% 0.20% 0.20%**** Net Investment Income.... 1.96% 1.98% 1.74%**** Portfolio Turnover Rate+.................. 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. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. 20 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2010 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2010, 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 replicate as closely as possible, before fees and expenses, the daily performance 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, an affiliated entity, 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. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer. C. 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. SEMI-ANNUAL REPORT 21 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- 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, 2010, 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 2007 -- 2009), 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, 2010, 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, 2010 are disclosed in the Fund's Statement of Operations. At April 30, 2010, 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:
NET UNREALIZED IDENTIFIED GROSS UNREALIZED GROSS UNREALIZED APPRECIATION COST APPRECIATION DEPRECIATION (DEPRECIATION) -------------- ---------------- ---------------- -------------- Rydex S&P Equal Weight ETF......... $2,187,469,828 $276,284,545 $(57,768,747) $218,515,798 Rydex Russell Top 50 ETF........... 392,386,567 16,211,692 (61,585,138) (45,373,446)
E. FAIR VALUE MEASUREMENT In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. 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.). 22 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- 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. The following table summarizes the inputs used to value the Funds' net assets as of April 30, 2010:
LEVEL 1 LEVEL 2 LEVEL 3 INVESTMENTS INVESTMENTS INVESTMENTS FUND IN SECURITIES IN SECURITIES IN SECURITIES TOTAL ---- -------------- ------------- ------------- -------------- ASSETS Rydex S&P Equal Weight ETF.............. $2,405,985,626 $-- $-- $2,405,985,626 Rydex Russell Top 50 ETF................ 347,013,121 -- -- 347,013,121
For the six months ended April 30, 2010, there were no Level 3 Investments. 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. RISK DISCLOSURE Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience the Funds expect the risk of loss to be remote. I. NEW ACCOUNTING PRONOUNCEMENTS In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented in Note 2E. The new disclosures and clarifications of existing disclosures are generally effective for the Funds' year ending October 31, 2011 and interim periods therein. Management is evaluating the impact of this update on current 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 a management 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 SEMI-ANNUAL REPORT 23 NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded) April 30, 2010 -------------------------------------------------------------------------------- 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., an affiliated entity, (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, 2010, 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, 2010 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ------------ Rydex S&P Equal Weight ETF................................. $948,606,505 $380,657,857 Rydex Russell Top 50 ETF................................... 25,144,992 25,574,595
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................................. $187,938,348 $192,229,065 Rydex Russell Top 50 ETF................................... 5,206,152 3,969,073
There were no purchases or sales of U.S. government or government agency obligations for the six months ended April 30, 2010. 6. SUBSEQUENT EVENTS Management has evaluated events or transactions that may have occurred since April 30, 2010, that would merit recognition or disclosure in the financial statements. This evaluation was completed through June xx, 2010, the date the financial statements were available to be issued and there were no events or transactions to be reported. 24 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, 2009 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. PENDING ACQUISITION TRANSACTION On February 16, 2010, Security Benefit Corporation ("SBC"), the parent company of PADCO Advisors, Inc., PADCO Advisors II, Inc. and Security Investors, LLC, the Funds' investment advisers, as applicable (the "Investment Advisers"), and certain of SBC's affiliates entered into agreements with an investor group (the "Investors") led by Guggenheim Partners, LLC ("Guggenheim"). Under the agreements, a special purpose vehicle owned by the Investors and managed by an affiliate of Guggenheim would receive a 100% ownership stake in SBC and consequently acquire control of the Investment Advisers and affiliates (the "Purchase Transaction"). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction should not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. While the parties expect the Purchase Transaction's closing to take place on or about the end of the second quarter, 2010, it is subject to various conditions, and may be delayed or even terminated due to unforeseen circumstances. SEMI-ANNUAL REPORT 25 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. 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 Board (1940) Rydex Dynamic Funds - 1999 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 Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005) --------------------- J. KENNETH DALTON Rydex Series Funds - 1995 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 --------------------- 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 ------------------------------------------------------------------------------------
26 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (concluded) EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- RICHARD M. GOLDMAN* President of Rydex Series Funds, Rydex President (1961) Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005) MICHAEL P. BYRUM* Vice President of Rydex Series Funds Vice President (1970) (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007) NICK BONOS* Vice President and Treasurer of Rydex Vice President and Treasurer (1963) Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006) JOANNA M. HAIGNEY* Chief Compliance Officer of Rydex Series Chief Compliance Officer and Funds, Rydex Variable Trust, and Rydex Secretary (1966) Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006) KEITH FLETCHER* Vice President of Rydex Series Funds, Vice President (1958) Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
SEMI-ANNUAL REPORT 27 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded) -------------------------------------------------------------------------------- EXECUTIVE OFFICERS (concluded)
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- AMY LEE* Vice President and Assistant Secretary of Vice President and Rydex Series Funds, Rydex Variable Trust, Assistant Secretary (1960) Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present) Director of Accounting of Rydex Investments (2003 to 2004) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)
* Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments. [RYDEX SGI LOGO] 9601 Blackwell Road - Suite 500 - Rockville, MD 20850 www.rydex-sgi.com - 800.820.0888 ETF-SEMI-0410X1010 APRIL 30, 2010 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 LOGO] SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS............................................... 2 FEES AND EXPENSES........................................................ 3 PREMIUM AND DISCOUNT INFORMATION......................................... 4 PORTFOLIO SUMMARY........................................................ 6 SCHEDULES OF INVESTMENTS................................................. 21 STATEMENTS OF ASSETS AND LIABILITIES..................................... 44 STATEMENTS OF OPERATIONS................................................. 48 STATEMENTS OF CHANGES IN NET ASSETS...................................... 52 FINANCIAL HIGHLIGHTS..................................................... 60 NOTES TO FINANCIAL STATEMENTS............................................ 75 SUPPLEMENTAL INFORMATION................................................. 81 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS............................ 82
2 LETTER TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- DEAR SHAREHOLDER, With the economy now showing signs of growth, despite having shrunk 2.4% last year, economic pundits are cautiously optimistic on the U.S. economy. In prepared remarks to the Dallas Regional Chamber, Fed Chairman Ben Bernanke said, "The economy has stabilized and is growing again, although we can hardly be satisfied when one out of every 10 U.S. workers is unemployed and family finances remain under great stress." Minutes of a March 16, 2010 Federal Reserve meeting showed policy makers warned against raising rates too soon because unemployment may hobble a recovery in the world's largest economy. Separately, New York Fed President William Dudley said that the benchmark federal funds rate "needs to be exceptionally low for an extended period to contribute to easier financial conditions to support economic activity." The Fed has kept its target rate for overnight loans between banks at zero to 0.25% since December 2008. STEADY PROGRESS, BUT CERTAINTY STILL ELUSIVE The S&P 500(R) Index returned 15.66% for the six months ended April 30, 2010, while the S&P Equal Weighted Index returned 22.54%. RydexSGI offers 10 equal weight ETFs which provide equal exposure to relevant indices, ensuring that smaller cap names are weighted as heavily as market giants, therefore eliminating the large-cap bias of traditional capitalization-weighted index products. INCREASED DEMAND FOR ETFS In the past decade, demand for ETFs has increased as institutional investors have found ETFs well suited for participating in, or hedging against, broad movements in the stock market. Individual investors and their financial advisors also have become increasingly aware of these investment vehicles. Assets in ETFs accounted for 6% of total net assets managed by investment companies at year-end 2009, according to The Investment Company Institute(1). In a regulatory environment that emphasizes transparency and reduced risk, investment professionals are increasingly turning to exchange traded funds (ETFs) -- there were 756 ETFs (a total of $691 billion in assets) in the marketplace in the beginning of the reporting period, and 839 (a total of $805 billion in assets) at the end of the reporting period(1). 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, RydexSGI is a proud participant in the ETF space with more than two dozen exchange traded products. Our exchange traded product asset base grew 20% in the six-month period ended April 30, 2010 -- to $6.7 billion from $5.6 billion. As one of the earlier entrants in the exchange traded product space, we are advocates on the numerous advantages ETFs offer investors. Thank you for the trust you place in us by investing with us. Sincerely, /s/ Michael Byrum Michael Byrum President & Chief Investment Officer PERFORMANCE DISPLAYED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS. FUND PERFORMANCE IS SUBJECT TO DAILY MARKET VOLATILITY AND MAY BE BETTER OR WORSE SINCE THE END OF THE LAST QUARTER. FOR UP-TO-DATE FUND PERFORMANCE, CALL 800.820.0888 OR VISIT WWW.RYDEX-SGI.COM. ---------- (1) Investment Company Institute 2010 Investment Company Factbook, p. 46., http://www.ici.org/pdf/2010_factbook.pdf SEMI-ANNUAL REPORT 3 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, 2009 and held for the six months ended April 30, 2010. 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 10/31/09 4/30/10 10/31/09 TO 4/30/10 ------- --------- --------- ------------------- ACTUAL Rydex S&P 500 Pure Value ETF............... 0.35% $1,000.00 $1,297.90 $1.99 Rydex S&P 500 Pure Growth ETF.............. 0.35% 1,000.00 1,210.80 1.92 Rydex S&P MidCap 400 Pure Value ETF........ 0.35% 1,000.00 1,377.00 2.06 Rydex S&P MidCap 400 Pure Growth ETF....... 0.35% 1,000.00 1,248.40 1.95 Rydex S&P SmallCap 600 Pure Value ETF...... 0.35% 1,000.00 1,389.50 2.07 Rydex S&P SmallCap 600 Pure Growth ETF..... 0.35% 1,000.00 1,230.80 1.94 Rydex S&P Equal Weight Consumer Discretionary ETF....................... 0.50% 1,000.00 1,329.90 2.89 Rydex S&P Equal Weight Consumer Staples ETF..................................... 0.50% 1,000.00 1,127.10 2.64 Rydex S&P Equal Weight Energy ETF.......... 0.50% 1,000.00 1,135.00 2.65 Rydex S&P Equal Weight Financials ETF...... 0.50% 1,000.00 1,257.10 2.80 Rydex S&P Equal Weight Health Care ETF..... 0.50% 1,000.00 1,171.10 2.69 Rydex S&P Equal Weight Industrials ETF..... 0.50% 1,000.00 1,264.50 2.81 Rydex S&P Equal Weight Materials ETF....... 0.50% 1,000.00 1,233.90 2.77 Rydex S&P Equal Weight Technology ETF...... 0.50% 1,000.00 1,212.80 2.74 Rydex S&P Equal Weight Utilities ETF....... 0.50% 1,000.00 1,134.20 2.65 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P 500 Pure Value ETF............... 0.35% 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....... 0.35% 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..................................... 0.50% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Energy ETF.......... 0.50% 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..... 0.50% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Materials ETF....... 0.50% 1,000.00 1,022.32 2.51 Rydex S&P Equal Weight Technology ETF...... 0.50% 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). 4 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 period from inception to April 30, 2010. 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 RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P S&P 500 S&P 500 MIDCAP 400 MIDCAP 400 SMALLCAP 600 SMALLCAP 600 PURE VALUE PURE GROWTH PURE VALUE PURE GROWTH PURE VALUE PURE GROWTH PREMIUM/DISCOUNT RANGE ETF ETF ETF ETF ETF ETF --------------------------------------------------------------------------------------------------------------- Greater Than 3% 2 2 6 0 4 4 Between 1.01% and 3% 32 17 28 10 21 41 Between .51% and 1% 45 31 37 24 42 41 Between .26% and .5% 61 58 58 35 82 76 Between 0% and .25% 483 486 398 483 424 353 Between -0.01% and -0.25% 401 446 453 473 418 430 Between -0.26% and -0.5% 67 62 73 83 75 105 Between -0.51% and -1% 39 29 42 35 52 63 Between -1.01% and -3% 30 29 55 19 39 45 Less Than -3% 3 3 13 1 X6 5 --------------------------------------------------------------------------------------------------------------- Total 1,163 1,163 1,163 1,163 1,163 1,163
PERCENTAGE OF TOTAL DAYS ---------------------------------------------------------------------------- RYDEX RYDEX RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P S&P 500 S&P 500 MIDCAP 400 MIDCAP 400 SMALLCAP 600 SMALLCAP 600 PURE VALUE PURE GROWTH PURE VALUE PURE GROWTH PURE VALUE PURE GROWTH PREMIUM/DISCOUNT RANGE ETF ETF ETF ETF ETF ETF --------------------------------------------------------------------------------------------------------------- Greater Than 3% 0.17% 0.17% 0.51% 0.00% 0.34% 0.34% Between 1.01% and 3% 2.75% 1.46% 2.41% 0.86% 1.81% 3.53% Between .51% and 1% 3.87% 2.67% 3.18% 2.06% 3.61% 3.53% Between .26% and .5% 5.25% 4.99% 4.99% 3.01% 7.05% 6.53% Between 0% and .25% 41.53% 41.79% 34.22% 41.53% 36.46% 30.35% Between -0.01% and -0.25% 34.48% 38.35% 38.95% 40.67% 35.94% 36.97% Between -0.26% and -0.5% 5.76% 5.33% 6.28% 7.14% 6.45% 9.03% Between -0.51% and -1% 3.35% 2.49% 3.61% 3.01% 4.47% 5.42% Between -1.01% and -3% 2.58% 2.49% 4.73% 1.63% 3.35% 3.87% Less Than -3% 0.26% 0.26% 1.12% 0.09% 0.52% 0.43% --------------------------------------------------------------------------------------------------------------- Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
SEMI-ANNUAL REPORT 5 PREMIUM AND DISCOUNT INFORMATION (Unaudited) (concluded) --------------------------------------------------------------------------------
NUMBER OF DAYS ----------------------------------------------------------------------------------------------------------- RYDEX RYDEX S&P S&P EQUAL EQUAL RYDEX S&P RYDEX S&P RYDEX RYDEX RYDEX S&P RYDEX RYDEX WEIGHT WEIGHT EQUAL EQUAL S&P EQUAL S&P EQUAL EQUAL S&P EQUAL S&P EQUAL CONSUMER CONSUMER WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT PREMIUM/DISCOUNT DISCRETIONARY STAPLES ENERGY FINANCIALS HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY UTILITIES RANGE ETF ETF ETF ETF ETF ETF ETF ETF ETF ----------------------------------------------------------------------------------------------------------------------------------- Greater Than 30% 0 0 0 1 0 0 0 0 0 Between 10.01% and 30% 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 6 3 6 2 Between 1.01% and 3% 21 22 31 54 7 44 36 26 36 Between .51% and 1% 31 42 52 51 30 44 39 38 38 Between .26% and .5% 33 54 64 48 60 56 46 50 60 Between 0% and .25% 376 337 290 291 405 305 357 365 318 Between -0.01% and -0.25% 388 374 327 327 377 361 353 351 363 Between -0.26% and -0.5% 71 86 86 68 69 71 68 66 76 Between -0.51% and -1% 42 57 76 64 36 64 46 54 66 Between -1.01% and -3% 15 20 45 57 8 38 39 34 27 Between -3.01% and -8% 6 0 13 16 0 3 5 2 5 Between -8.01% and -10% 1 0 0 1 0 0 0 0 0 Between -10.01% and -30% 0 0 0 1 0 0 0 0 0 Less Than -30% 0 0 1 0 0 0 0 0 1 ----------------------------------------------------------------------------------------------------------------------------------- Total 992 992 992 992 992 992 992 992 992
PERCENTAGE OF TOTAL DAYS ------------------------------------------------------------------------------------------------ RYDEX RYDEX S&P EQUAL S&P EQUAL 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 CONSUMER CONSUMER WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT WEIGHT PREMIUM/DISCOUNT DISCRETIONARY STAPLES ENERGY FINANCIALS HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY RANGE ETF ETF ETF ETF ETF ETF ETF ETF -------------------------------------------------------------------------------------------------------------------------- Greater Than 30% 0.00% 0.00% 0.00% 0.10% 0.00% 0.00% 0.00% 0.00% Between 10.01% and 30% 0.00% 0.00% 0.00% 0.10% 0.00% 0.00% 0.00% 0.00% Between 8.01% and 10% 0.10% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Between 3.01% and 8% 0.71% 0.00% 0.71% 1.21% 0.00% 0.60% 0.30% 0.61% Between 1.01% and 3% 2.12% 2.22% 3.13% 5.44% 0.71% 4.44% 3.63% 2.62% Between .51% and 1% 3.13% 4.23% 5.24% 5.14% 3.02% 4.44% 3.93% 3.83% Between .26% and .5% 3.33% 5.44% 6.45% 4.84% 6.05% 5.64% 4.64% 5.04% Between 0% and .25% 37.90% 33.97% 29.23% 29.34% 40.83% 30.75% 35.99% 36.80% Between -0.01% and -0.25% 39.11% 37.70% 32.96% 32.96% 38.00% 36.39% 35.59% 35.38% Between -0.26% and -0.5% 7.16% 8.67% 8.67% 6.86% 6.95% 7.16% 6.85% 6.65% Between -0.51% and -1% 4.23% 5.75% 7.66% 6.45% 3.63% 6.45% 4.64% 5.44% Between -1.01% and -3% 1.51% 2.02% 4.54% 5.75% 0.81% 3.83% 3.93% 3.43% Between -3.01% and -8% 0.60% 0.00% 1.31% 1.61% 0.00% 0.30% 0.50% 0.20% Between -8.01% and -10% 0.10% 0.00% 0.00% 0.10% 0.00% 0.00% 0.00% 0.00% Between -10.01% and -30% 0.00% 0.00% 0.00% 0.10% 0.00% 0.00% 0.00% 0.00% Less Than -30% 0.00% 0.00% 0.10% 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% PERCENT- AGE OF TOTAL DAYS --------- RYDEX S&P EQUAL WEIGHT PREMIUM/DISCOUNT UTILITIES RANGE ETF ----------------------------------- Greater Than 30% 0.00% Between 10.01% and 30% 0.00% Between 8.01% and 10% 0.00% Between 3.01% and 8% 0.20% Between 1.01% and 3% 3.63% Between .51% and 1% 3.83% Between .26% and .5% 6.05% Between 0% and .25% 32.06% Between -0.01% and -0.25% 36.59% Between -0.26% and -0.5% 7.66% Between -0.51% and -1% 6.65% Between -1.01% and -3% 2.72% Between -3.01% and -8% 0.51% Between -8.01% and -10% 0.00% Between -10.01% and -30% 0.00% Less Than -30% 0.10% ----------------------------------- Total 100.00%
6 RYDEX S&P 500 PURE VALUE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SEARS HOLDINGS CORP. 2.93% HUNTINGTON BANCSHARES, INC. 2.76% VALERO ENERGY CORP. 2.75% TESORO CORP. 2.66% ZIONS BANCORP 2.63% SUNOCO, INC. 2.30% TYSON FOODS, INC. -- CLASS A 2.21% SUNTRUST BANKS, INC. 2.08% INTEGRYS ENERGY GROUP, INC. 2.06% GENWORTH FINANCIAL, INC. -- CLASS A 1.99% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 28.47 Utilities 14.55 Energy 13.04 Health Care 10.48 Consumer Discretionary 10.21 Consumer Staples 8.65 Industrials 6.62 Materials 3.61 Telecommunication Services 2.45 Information Technology 1.92
* 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 S&P 500 PURE GROWTH ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ PRICELINE.COM, INC. 1.97% SALESFORCE.COM, INC. 1.96% RED HAT, INC. 1.86% AKAMAI TECHNOLOGIES, INC. 1.81% COGNIZANT TECHNOLOGY SOLUTIONS CORP. -- CLASS A 1.81% INTUITIVE SURGICAL, INC. 1.78% AMAZON.COM, INC. 1.78% APPLE, INC. 1.63% WYNN RESORTS LTD. 1.57% CLIFFS NATURAL RESOURCES, INC. 1.52% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 26.75 Consumer Discretionary 21.07 Energy 17.06 Health Care 13.33 Financials 7.66 Industrials 6.75 Materials 5.47 Consumer Staples 1.91
* 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 MIDCAP 400 PURE VALUE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ KINDRED HEALTHCARE, INC. 3.10% CATHAY GENERAL BANCORP 3.02% TEREX CORP. 2.75% FOOT LOCKER, INC. 2.53% FRONTIER OIL CORP. 2.52% ASHLAND, INC. 2.50% FEDERAL SIGNAL CORP. 2.27% TRINITY INDUSTRIES, INC. 2.05% SMITHFIELD FOODS, INC. 2.00% REGIS CORP. 1.95% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Industrials 21.83 Financials 16.32 Consumer Discretionary 14.93 Health Care 9.18 Utilities 8.97 Information Technology 8.62 Consumer Staples 7.66 Energy 6.39 Materials 5.30 Telecommunication Services 0.80
* 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 MIDCAP 400 PURE GROWTH ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ NETFLIX, INC. 2.71% BUCYRUS INTERNATIONAL, INC. -- CLASS A 2.31% COMMUNITY HEALTH SYSTEMS, INC. 2.28% GREEN MOUNTAIN COFFEE ROASTERS, INC. 2.14% GUESS?, INC. 2.00% AEROPOSTALE, INC. 2.00% CHEESECAKE FACTORY, INC. (THE) 1.92% JONES LANG LASALLE, INC. 1.91% NEWMARKET CORP. 1.83% RELIANCE STEEL & ALUMINUM CO. 1.79% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 31.08 Information Technology 19.15 Health Care 13.38 Industrials 9.28 Energy 7.74 Financials 7.17 Materials 6.30 Consumer Staples 4.40 Telecommunication Services 1.50
* 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 SMALLCAP 600 PURE VALUE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ QUIKSILVER, INC. 4.06% TUESDAY MORNING CORP. 2.66% NCI BUILDING SYSTEMS, INC. 2.04% NATIONAL FINANCIAL PARTNERS CORP. 1.80% CIBER, INC. 1.64% ARCTIC CAT, INC. 1.64% BASIC ENERGY SERVICES, INC. 1.54% SUSQUEHANNA BANCSHARES, INC. 1.46% VOLT INFORMATION SCIENCES, INC. 1.43% JAKKS PACIFIC, INC. 1.26% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 28.21 Industrials 21.04 Financials 20.30 Health Care 8.14 Information Technology 6.68 Energy 5.66 Consumer Staples 4.49 Materials 4.12 Utilities 1.36
* 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 SMALLCAP 600 PURE GROWTH ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ DOLAN MEDIA CO. 1.59% PERFICIENT, INC. 1.52% BLUE COAT SYSTEMS, INC. 1.40% LUMBER LIQUIDATORS HOLDINGS, INC. 1.37% TRUE RELIGION APPAREL, INC. 1.31% ANDERSONS, INC. (THE) 1.29% CYBERSOURCE CORP. 1.20% WRIGHT EXPRESS CORP. 1.20% TRIQUINT SEMICONDUCTOR, INC. 1.11% CROCS, INC. 1.10% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 30.10 Consumer Discretionary 25.72 Health Care 17.13 Financials 7.70 Energy 6.40 Consumer Staples 5.38 Industrials 5.14 Materials 1.51 Telecommunication Services 0.92
* 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 EQUAL WEIGHT CONSUMER DISCRETIONARY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ STARWOOD HOTELS & RESORTS WORLDWIDE, INC. 1.46% MARRIOTT INTERNATIONAL, INC. -- CLASS A 1.45% WHIRLPOOL CORP. 1.44% INTERNATIONAL GAME TECHNOLOGY 1.42% WYNN RESORTS LTD. 1.40% LENNAR CORP. -- CLASS A 1.39% HARLEY-DAVIDSON, INC. 1.37% SHERWIN-WILLIAMS CO. (THE) 1.37% DISCOVERY COMMUNICATIONS, INC. -- CLASS A 1.36% SEARS HOLDINGS CORP. 1.34% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Specialty Retail 23.15 Media 21.06 Hotels, Restaurants & Leisure 13.15 Household Durables 11.55 Multiline Retail 9.66 Textiles, Apparel & Luxury Goods 4.93 Internet & Catalog Retail 3.65 Leisure Equipment & Products 3.48 Diversified Consumer Services 3.33 Automobiles 2.48 Auto Components 2.39 Distributors 1.17
* 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 13 RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CONSTELLATION BRANDS, INC. -- CLASS A 2.73% HERSHEY CO. (THE) 2.66% TYSON FOODS, INC. -- CLASS A 2.64% SYSCO CORP. 2.64% WHOLE FOODS MARKET, INC. 2.63% CVS CAREMARK CORP. 2.59% ESTEE LAUDER COS., INC. -- CLASS A 2.51% ALTRIA GROUP, INC. 2.51% COCA-COLA ENTERPRISES, INC. 2.49% KELLOGG CO. 2.49% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Food Products 34.24 Food & Staples Retailing 22.02 Beverages 17.08 Tobacco 9.66 Household Products 9.60 Personal Products 7.40
* 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. 14 RYDEX S&P EQUAL WEIGHT ENERGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ DENBURY RESOURCES, INC. 3.03% EOG RESOURCES, INC. 3.00% PIONEER NATURAL RESOURCES CO. 2.98% CONOCOPHILLIPS 2.78% ROWAN COS., INC. 2.76% FMC TECHNOLOGIES, INC. 2.74% SCHLUMBERGER, LTD. 2.72% SUNOCO, INC. 2.71% SMITH INTERNATIONAL, INC. 2.70% MURPHY OIL CORP. 2.69% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Oil, Gas & Consumable Fuels 71.45 Energy Equipment & Services 28.55
* 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 FINANCIALS ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ ZIONS BANCORP 1.55% HUNTINGTON BANCSHARES, INC. 1.52% APARTMENT INVESTMENT & MANAGEMENT CO. -- CLASS A 1.50% KEYCORP. 1.44% HOST HOTELS & RESORTS, INC. 1.43% REGIONS FINANCIAL CORP. 1.43% AVALONBAY COMMUNITIES, INC. 1.43% MARSHALL & ILSLEY CORP. 1.41% CB RICHARD ELLIS GROUP, INC. -- CLASS A 1.40% EQUITY RESIDENTIAL 1.39% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Insurance 26.00 Commercial Banks 18.94 Real Estate Investment Trusts(REITs) 18.04 Capital Markets 17.02 Diversified Financial Services 11.10 Consumer Finance 5.15 Thrifts & Mortgage Finance 2.35 Real Estate Management & Development 1.40
* 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 HEALTH CARE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ THERMO FISHER SCIENTIFIC, INC. 2.18% WATERS CORP. 2.18% CAREFUSION CORP. 2.15% TENET HEALTHCARE CORP. 2.15% AMERISOURCEBERGEN CORP. 2.13% DENTSPLY INTERNATIONAL, INC. 2.12% ZIMMER HOLDINGS, INC. 2.11% CERNER CORP. 2.10% VARIAN MEDICAL SYSTEMS, INC. 2.08% WATSON PHARMACEUTICALS, INC. 2.08% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Health Care Providers & Services 30.32 Health Care Equipment &Supplies 25.78 Pharmaceuticals 20.67 Biotechnology 10.70 Life Sciences Tools & Services 10.43 Health Care Technology 2.10
* 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 INDUSTRIALS ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ FIRST SOLAR, INC. 2.09% CUMMINS, INC. 2.04% RYDER SYSTEM, INC. 1.99% FLOUR CORP. 1.93% FASTENAL CO. 1.93% CATERPILLAR, INC. 1.90% SNAP-ON, INC. 1.85% DOVER CORP. 1.85% AVERY DENNISON CORP. 1.85% JACOBS ENGINEERING GROUP, INC. 1.85% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Machinery 21.70 Aerospace & Defense 20.40 Commercial Services & Supplies 13.73 Electrical Equipment 7.45 Road & Rail 7.27 Air Freight & Logistics 6.92 Construction & Engineering 5.49 Industrial Conglomerates 5.20 Professional Services 4.73 Trading Companies & Distributors 3.63 Building Products 1.78 Airlines 1.70
* 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 MATERIALS ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ VULCAN MATERIALS CO. 3.70% ECOLAB, INC. 3.54% WEYERHAEUSER CO. 3.51% INTERNATIONAL FLAVORS & FRAGRANCES, INC. 3.49% NEWMONT MINING CORP. 3.46% EASTMAN CHEMICAL CO. 3.43% DUPONT (E.I.) DE NEMOURS & CO. 3.42% MEADWESTVACO CORP. 3.41% PPG INDUSTRIES, INC. 3.40% SIGMA-ALDRICH CORP. 3.40% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Chemicals 42.57 Metals & Mining 27.59 Containers & Packaging 15.95 Paper & Forest Products 10.18 Construction Materials 3.71
* 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 TECHNOLOGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SANDISK CORP. 1.60% AKAMAI TECHNOLOGIES, INC. 1.59% TELLABS, INC. 1.55% JDS UNIPHASE CORP. 1.53% KLA-TENCOR CORP. 1.52% APPLE, INC. 1.52% AUTODESK, INC. 1.51% TERADYNE, INC. 1.49% XEROX CORP. 1.47% NOVELLUS SYSTEMS, INC. 1.46% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Semiconductors & Semiconductor Equipment 23.88 Software 19.59 Computers & Peripherals 15.20 IT Services 14.35 Communications Equipment 9.60 Electronic Equipment, Instruments & Components 8.02 Internet Software & Services 7.89 Office Electronics 1.47
* 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 UTILITIES ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SPRINT NEXTEL CORP. 2.46% QUESTAR CORP. 2.45% NRG ENERGY, INC. 2.39% METROPCS COMMUNICATIONS, INC. 2.35% FPL GROUP, INC. 2.34% INTEGRYS ENERGY GROUP, INC. 2.34% DTE ENERGY CO. 2.33% ONEOK, INC. 2.32% TECO ENERGY, INC. 2.32% FRONTIER COMMUNICATIONS CORP. 2.31% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Multi-Utilities 33.76 Electric Utilities 30.24 Diversified Telecommunication Services 13.14 Gas Utilities 9.28 Wireless Telecommunication Services 6.85 Independent Power Producers & Energy Traders 6.73
* 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 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.8% AEROSPACE & DEFENSE 0.5% L-3 Communications Holdings, Inc. .................... 6,618 $619,246 ------------ TOTAL AEROSPACE & DEFENSE 619,246 ------------ AIRLINES 0.6% Southwest Airlines Co. ..... 50,055 659,725 ------------ TOTAL AIRLINES 659,725 ------------ AUTO COMPONENTS 1.0% Goodyear Tire & Rubber Co.(The)*................ 87,349 1,173,097 ------------ TOTAL AUTO COMPONENTS 1,173,097 ------------ CAPITAL MARKETS 1.6% E*TRADE Financial Corp.*.... 619,790 1,041,247 Morgan Stanley.............. 27,676 836,369 ------------ TOTAL CAPITAL MARKETS 1,877,616 ------------ CHEMICALS 0.5% Dow Chemical Co.(The)....... 19,530 602,110 ------------ TOTAL CHEMICALS 602,110 ------------ COMMERCIAL BANKS 11.4% BB&T Corp. ................. 21,002 698,107 Comerica, Inc. ............. 25,090 1,053,780 Huntington Bancshares, Inc. .................... 480,514 3,253,080 KeyCorp..................... 144,022 1,299,078 Marshall & Ilsley Corp. .... 93,967 855,100 Regions Financial Corp. .... 78,591 694,744 SunTrust Banks, Inc. ....... 82,807 2,451,087 Zions Bancorp............... 107,653 3,092,871 ------------ TOTAL COMMERCIAL BANKS 13,397,847 ------------ COMMERCIAL SERVICES & SUPPLIES 0.9% Avery Dennison Corp. ....... 11,414 445,488 R.R. Donnelley & Sons Co. .. 27,524 591,491 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 1,036,979 ------------ COMPUTERS & PERIPHERALS 0.6% Lexmark International, Inc. -- Class A*......... 20,714 767,454 ------------ TOTAL COMPUTERS & PERIPHERALS 767,454 ------------ CONSTRUCTION & ENGINEERING 1.9% Fluor Corp. ................ 19,292 1,019,389 Jacobs Engineering Group, Inc.*.................... 26,512 1,278,409 ------------ TOTAL CONSTRUCTION & ENGINEERING 2,297,798 ------------ CONSUMER FINANCE 1.4% Capital One Financial Corp. ................... 28,880 1,253,681 Discover Financial Services................. 28,556 441,476 ------------ TOTAL CONSUMER FINANCE 1,695,157 ------------ DIVERSIFIED FINANCIAL SERVICES 3.5% Bank of America Corp. ...... 96,279 1,716,655 Citigroup, Inc.*............ 352,174 1,539,000 Nasdaq OMX Group (The)*..... 40,522 850,962 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 4,106,617 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 0.4% CenturyTel, Inc. ........... 13,104 446,977 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 446,977 ------------ ELECTRIC UTILITIES 4.7% Allegheny Energy, Inc. ..... 19,864 432,638 American Electric Power Co., Inc. .................... 16,332 560,188 Duke Energy Corp. .......... 26,148 438,763 Edison International........ 19,004 653,168 Northeast Utilities......... 26,082 724,819 Pepco Holdings, Inc. ....... 99,249 1,661,428 Pinnacle West Capital Corp. ................... 15,280 570,555 Progress Energy, Inc. ...... 10,898 435,048 ------------ TOTAL ELECTRIC UTILITIES 5,476,607 ------------ ENERGY EQUIPMENT & SERVICES 1.3% Smith International, Inc. .. 31,106 1,485,623 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 1,485,623 ------------ FOOD & STAPLES RETAILING 4.4% Costco Wholesale Corp. ..... 10,782 637,001 CVS Caremark Corp. ......... 25,080 926,204 Kroger Co.(The)............. 74,417 1,654,290 Safeway, Inc. .............. 81,055 1,912,898 ------------ TOTAL FOOD & STAPLES RETAILING 5,130,393 ------------ FOOD PRODUCTS 4.3% Archer-Daniels-Midland Co. ..................... 42,212 1,179,403 Dean Foods Co.*............. 79,308 1,245,136 Tyson Foods, Inc. -- Class A.................. 132,838 2,602,296 ------------ TOTAL FOOD PRODUCTS 5,026,835 ------------ GAS UTILITIES 1.7% Nicor, Inc. ................ 14,642 637,074 Oneok, Inc. ................ 28,202 1,385,846 ------------ TOTAL GAS UTILITIES 2,022,920 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 0.5% CareFusion Corp.*........... 22,414 618,178 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 618,178 ------------ HEALTH CARE PROVIDERS & SERVICES 9.9% Aetna, Inc. ................ 25,632 757,426 AmerisourceBergen Corp. .... 60,789 1,875,341 Cardinal Health, Inc. ...... 59,881 2,077,272 Coventry Health Care, Inc.*.................... 74,761 1,774,826 Humana, Inc.*............... 36,930 1,688,439 McKesson Corp. ............. 23,562 1,527,053 Tenet Healthcare Corp.*..... 177,535 1,109,594 WellPoint, Inc.*............ 16,302 877,047 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 11,686,998 ------------ HOUSEHOLD DURABLES 1.8% Fortune Brands, Inc. ....... 11,158 584,902 Whirlpool Corp. ............ 14,602 1,589,720 ------------ TOTAL HOUSEHOLD DURABLES 2,174,622 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.4% Constellation Energy Group, Inc. .................... 14,278 504,727 ------------ TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 504,727 ------------ INDUSTRIAL CONGLOMERATES 0.8% Textron, Inc. .............. 42,900 979,836 ------------ TOTAL INDUSTRIAL CONGLOMERATES 979,836 ------------ INSURANCE 9.1% Allstate Corp. ............. 15,948 521,021 American International Group, Inc.*............. 33,130 1,288,757 Assurant, Inc. ............. 42,862 1,561,463 Cincinnati Financial Corp. ................... 26,320 747,488 Genworth Financial, Inc. -- Class A*......... 141,988 2,345,642
See Notes to Financial Statements. 22 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) Lincoln National Corp. ..... 48,831 $1,493,740 MetLife, Inc. .............. 26,704 1,217,168 Travelers Cos., Inc.(The)... 8,424 427,434 Unum Group.................. 46,665 1,141,893 ------------ TOTAL INSURANCE 10,744,606 ------------ LEISURE EQUIPMENT & PRODUCTS 0.7% Eastman Kodak Co.*.......... 126,859 776,377 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 776,377 ------------ MACHINERY 1.0% Eaton Corp. ................ 7,736 596,910 Snap-on, Inc. .............. 11,546 556,286 ------------ TOTAL MACHINERY 1,153,196 ------------ MEDIA 1.4% Comcast Corp. -- Class A.... 27,772 548,219 Interpublic Group of Cos., Inc.*.................... 121,911 1,086,227 ------------ TOTAL MEDIA 1,634,446 ------------ METALS & MINING 3.1% Alcoa, Inc. ................ 99,780 1,341,043 United States Steel Corp. .. 42,126 2,302,607 ------------ TOTAL METALS & MINING 3,643,650 ------------ MULTI-UTILITIES 7.7% Ameren Corp. ............... 41,534 1,078,223 CenterPoint Energy, Inc. ... 52,433 752,938 CMS Energy Corp. ........... 57,523 935,324 Consolidated Edison, Inc. .. 12,128 548,186 DTE Energy Co. ............. 17,086 823,033 Integrys Energy Group, Inc. .................... 48,851 2,423,498 NiSource, Inc. ............. 89,680 1,461,784 SCANA Corp. ................ 13,914 549,185 Xcel Energy, Inc. .......... 23,567 512,582 ------------ TOTAL MULTI-UTILITIES 9,084,753 ------------ MULTILINE RETAIL 4.6% Big Lots, Inc.*............. 22,672 866,070 J.C. Penney Co., Inc. ...... 37,876 1,104,843 Sears Holdings Corp.*....... 28,526 3,450,220 ------------ TOTAL MULTILINE RETAIL 5,421,133 ------------ OFFICE ELECTRONICS 1.3% Xerox Corp. ................ 137,155 1,494,990 ------------ TOTAL OFFICE ELECTRONICS 1,494,990 ------------ OIL, GAS & CONSUMABLE FUELS 11.7% Chesapeake Energy Corp. .... 28,106 668,923 Chevron Corp. .............. 6,466 526,591 ConocoPhillips.............. 9,532 564,199 Hess Corp. ................. 14,976 951,725 Marathon Oil Corp. ......... 45,719 1,469,866 Sunoco, Inc. ............... 82,507 2,704,579 Tesoro Corp. ............... 238,213 3,132,501 Valero Energy Corp. ........ 155,720 3,237,419 Williams Cos., Inc.(The).... 24,306 573,864 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 13,829,667 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 1.4% Host Hotels & Resorts, Inc. .................... 57,973 942,641 Kimco Realty Corp. ......... 43,072 671,492 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,614,133 ------------ ROAD & RAIL 0.9% Ryder System, Inc. ......... 22,080 1,027,162 ------------ TOTAL ROAD & RAIL 1,027,162 ------------ SPECIALTY RETAIL 0.7% AutoNation, Inc.*........... 40,330 814,666 ------------ TOTAL SPECIALTY RETAIL 814,666 ------------ WIRELESS TELECOMMUNICATION SERVICES 2.1% MetroPCS Communications, Inc.*.................... 95,495 728,627 Sprint Nextel Corp.*........ 399,764 1,698,997 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 2,427,624 ------------ TOTAL COMMON STOCKS (Cost $106,869,169) 117,453,765 ------------ SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund..................... 108,745 108,745 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $108,745) 108,745 ------------ TOTAL INVESTMENTS 99.9%(A) (Cost $106,977,914) 117,562,510 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 105,927 ------------ NET ASSETS--100.0% $117,668,437 ------------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% AEROSPACE & DEFENSE 3.1% Goodrich Corp. .............. 6,984 $518,073 Honeywell International, Inc. ..................... 9,886 469,288 ITT Corp. ................... 7,568 420,554 Precision Castparts Corp. ... 7,944 1,019,533 United Technologies Corp. ... 4,436 332,478 ----------- TOTAL AEROSPACE & DEFENSE 2,759,926 ----------- BIOTECHNOLOGY 1.9% Biogen Idec, Inc.*........... 12,799 681,547 Celgene Corp.*............... 8,904 551,603 Gilead Sciences, Inc.*....... 12,965 514,321 ----------- TOTAL BIOTECHNOLOGY 1,747,471 ----------- CAPITAL MARKETS 1.4% Invesco Ltd. ................ 30,827 708,713 Janus Capital Group, Inc. ... 39,096 550,471 ----------- TOTAL CAPITAL MARKETS 1,259,184 ----------- CHEMICALS 1.9% CF Industries Holdings, Inc. ..................... 12,497 1,045,624 FMC Corp. ................... 5,334 339,456 Praxair, Inc. ............... 3,612 302,577 ----------- TOTAL CHEMICALS 1,687,657 ----------- COMMERCIAL SERVICES & SUPPLIES 0.4% Stericycle, Inc.*............ 6,388 376,253 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 376,253 ----------- COMMUNICATIONS EQUIPMENT 0.8% Juniper Networks, Inc.*...... 25,367 720,676 ----------- TOTAL COMMUNICATIONS EQUIPMENT 720,676 ----------- COMPUTERS & PERIPHERALS 7.2% Apple, Inc.*................. 5,596 1,461,228 EMC Corp.*................... 43,218 821,574 International Business Machines Corp. ........... 2,370 305,730 NetApp, Inc.*................ 37,446 1,298,253 QLogic Corp.*................ 38,636 748,379 Teradata Corp.*.............. 18,613 541,080 Western Digital Corp.*....... 30,347 1,246,958 ----------- TOTAL COMPUTERS & PERIPHERALS 6,423,202 ----------- CONSUMER FINANCE 0.5% American Express Co. ........ 10,314 475,682 ----------- TOTAL CONSUMER FINANCE 475,682 ----------- DIVERSIFIED FINANCIAL SERVICES 1.6% CME Group, Inc. ............. 1,534 503,781 IntercontinentalExchange, Inc.*..................... 8,300 968,029 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 1,471,810 ----------- ELECTRICAL EQUIPMENT 0.7% First Solar, Inc.*........... 4,154 596,307 ----------- TOTAL ELECTRICAL EQUIPMENT 596,307 ----------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 2.2% Amphenol Corp. -- Class A.... 20,159 931,548 Corning, Inc. ............... 26,767 515,265 FLIR Systems, Inc.*.......... 17,643 539,699 ----------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 1,986,512 ----------- ENERGY EQUIPMENT & SERVICES 8.0% Baker Hughes, Inc. .......... 15,013 747,047 Cameron International Corp.*.................... 30,555 1,205,700 Diamond Offshore Drilling, Inc. ..................... 9,082 718,386 FMC Technologies, Inc.*...... 14,427 976,564 Helmerich & Payne, Inc. ..... 11,722 476,148 National-Oilwell Varco, Inc. ..................... 24,239 1,067,243 Rowan Cos., Inc.*............ 39,272 1,170,305 Schlumberger, Ltd. .......... 10,616 758,195 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 7,119,588 ----------- FOOD & STAPLES RETAILING 1.5% Whole Foods Market, Inc.*.... 33,375 1,302,293 ----------- TOTAL FOOD & STAPLES RETAILING 1,302,293 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 3.0% Hospira, Inc.*............... 6,826 367,170 Intuitive Surgical, Inc.*.... 4,416 1,592,233 St Jude Medical, Inc.*....... 9,280 378,810 Zimmer Holdings, Inc.*....... 5,574 339,512 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,677,725 ----------- HEALTH CARE PROVIDERS & SERVICES 3.2% CIGNA Corp. ................. 31,109 997,355 DaVita, Inc.*................ 8,842 552,006 Express Scripts, Inc.*....... 5,732 573,945 Laboratory Corp. of America Holdings*................. 4,436 348,536 Medco Health Solutions, Inc.*..................... 6,816 401,599 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 2,873,441 ----------- HEALTH CARE TECHNOLOGY 0.8% Cerner Corp.*................ 8,250 700,508 ----------- TOTAL HEALTH CARE TECHNOLOGY 700,508 ----------- HOTELS, RESTAURANTS & LEISURE 3.7% Starbucks Corp. ............. 36,998 961,208 Starwood Hotels & Resorts Worldwide, Inc. .......... 9,280 505,853 Wyndham Worldwide Corp. ..... 16,359 438,585 Wynn Resorts Ltd. ........... 15,909 1,403,810 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 3,309,456 ----------- INTERNET & CATALOG RETAIL 4.4% Amazon.com, Inc.*............ 11,588 1,588,251 Expedia, Inc. ............... 23,771 561,234 Priceline.com, Inc.*......... 6,722 1,761,500 ----------- TOTAL INTERNET & CATALOG RETAIL 3,910,985 ----------- INTERNET SOFTWARE & SERVICES 4.3% Akamai Technologies, Inc.*... 41,748 1,621,075 eBay, Inc.*.................. 47,770 1,137,404 Google, Inc. -- Class A*..... 2,026 1,064,541 ----------- TOTAL INTERNET SOFTWARE & SERVICES 3,823,020 ----------- IT SERVICES 3.0% Cognizant Technology Solutions Corp. -- Class A*.................. 31,651 1,619,898 Visa, Inc. -- Class A........ 11,401 1,028,712 ----------- TOTAL IT SERVICES 2,648,610 ----------- LEISURE EQUIPMENT & PRODUCTS 0.4% Hasbro, Inc. ................ 10,450 400,862 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 400,862 -----------
See Notes to Financial Statements. 24 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% (CONCLUDED) LIFE SCIENCES TOOLS & SERVICES 1.7% Life Technologies Corp.*..... 10,784 $589,993 Millipore Corp.*............. 4,260 452,199 Waters Corp.*................ 7,202 518,472 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 1,560,664 ----------- MACHINERY 2.2% Caterpillar, Inc. ........... 7,788 530,285 Danaher Corp. ............... 4,082 344,031 Flowserve Corp. ............. 9,520 1,090,802 ----------- TOTAL MACHINERY 1,965,118 ----------- MEDIA 2.3% DIRECTV -- Class A*.......... 22,581 818,109 Viacom, Inc. -- Class B*..... 34,281 1,211,148 ----------- TOTAL MEDIA 2,029,257 ----------- METALS & MINING 2.9% Cliffs Natural Resources, Inc. ..................... 21,683 1,355,838 Freeport-McMoRan Copper & Gold, Inc. ............... 11,255 850,090 Newmont Mining Corp. ........ 6,858 384,597 ----------- TOTAL METALS & MINING 2,590,525 ----------- MULTILINE RETAIL 1.6% Kohl's Corp.*................ 6,598 362,824 Nordstrom, Inc. ............. 25,723 1,063,132 ----------- TOTAL MULTILINE RETAIL 1,425,956 ----------- OIL, GAS & CONSUMABLE FUELS 9.1% Anadarko Petroleum Corp. .... 15,179 943,527 Denbury Resources, Inc.*..... 68,681 1,315,241 EOG Resources, Inc. ......... 5,930 664,872 Massey Energy Co. ........... 23,655 866,483 Noble Energy, Inc. .......... 5,720 437,008 Occidental Petroleum Corp. .. 6,170 547,032 Peabody Energy Corp. ........ 14,011 654,594 Pioneer Natural Resources Co. ...................... 10,272 658,743 Range Resources Corp. ....... 15,231 727,432 Southwestern Energy Co.*..... 18,541 735,707 XTO Energy, Inc. ............ 12,172 578,413 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 8,129,052 ----------- PAPER & FOREST PRODUCTS 0.7% MeadWestvaco Corp. .......... 22,341 607,005 ----------- TOTAL PAPER & FOREST PRODUCTS 607,005 ----------- PERSONAL PRODUCTS 0.4% Avon Products, Inc. ......... 12,371 399,954 ----------- TOTAL PERSONAL PRODUCTS 399,954 ----------- PHARMACEUTICALS 2.6% Allergan, Inc. .............. 9,186 585,057 Mylan, Inc.*................. 52,968 1,166,885 Watson Pharmaceuticals, Inc.*..................... 13,999 599,437 ----------- TOTAL PHARMACEUTICALS 2,351,379 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 2.6% ProLogis..................... 93,390 1,229,946 Ventas, Inc. ................ 22,757 1,074,813 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 2,304,759 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 1.0% CB Richard Ellis Group, Inc. -- Class A*........ 50,652 877,293 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 877,293 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.8% Altera Corp. ................ 16,045 406,901 Broadcom Corp. -- Class A.... 26,985 930,713 NVIDIA Corp.*................ 19,877 312,466 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1,650,080 ----------- SOFTWARE 7.4% Adobe Systems, Inc.*......... 12,537 421,118 Autodesk, Inc.*.............. 13,635 463,726 BMC Software, Inc.*.......... 10,158 399,819 Citrix Systems, Inc.*........ 12,141 570,627 McAfee, Inc.*................ 11,566 401,918 Microsoft Corp. ............. 13,739 419,589 Oracle Corp. ................ 21,683 560,289 Red Hat, Inc.*............... 55,714 1,664,177 Salesforce.com, Inc.*........ 20,461 1,751,462 ----------- TOTAL SOFTWARE 6,652,725 ----------- SPECIALTY RETAIL 6.8% Abercrombie & Fitch Co. -- Class A............ 14,521 635,003 AutoZone, Inc.*.............. 2,464 455,865 Bed Bath & Beyond, Inc.*..... 13,467 $618,943 Best Buy Co., Inc. .......... 22,559 1,028,691 O'Reilly Automotive, Inc.*... 11,534 563,897 Ross Stores, Inc. ........... 11,212 627,872 Tiffany & Co. ............... 16,713 810,246 TJX Cos., Inc. .............. 9,406 435,874 Urban Outfitters, Inc.*...... 23,155 868,544 ----------- TOTAL SPECIALTY RETAIL 6,044,935 ----------- TEXTILES, APPAREL & LUXURY GOODS 1.9% Coach, Inc. ................. 27,559 1,150,588 Polo Ralph Lauren Corp. ..... 6,212 558,459 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 1,709,047 ----------- THRIFTS & MORTGAGE FINANCE 0.5% Hudson City Bancorp, Inc. ... 34,627 460,539 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 460,539 ----------- TRADING COMPANIES & DISTRIBUTORS 0.4% W.W. Grainger, Inc. ......... 2,986 330,072 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 330,072 ----------- TOTAL COMMON STOCKS (Cost $78,199,636) 89,359,528 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund...................... 91,833 91,833 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $91,833) 91,833 ----------- TOTAL INVESTMENTS 100.0%(A) (Cost $78,291,469) 89,451,361 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(b) 13,246 ----------- NET ASSETS--100.0% $89,464,607 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% AIRLINES 1.6% Alaska Air Group, Inc.*..... 14,735 $610,176 JetBlue Airways Corp.*...... 100,240 560,342 ----------- TOTAL AIRLINES 1,170,518 ----------- CHEMICALS 3.2% Ashland, Inc. .............. 30,604 1,822,774 Cytec Industries, Inc. ..... 11,176 537,119 ----------- TOTAL CHEMICALS 2,359,893 ----------- COMMERCIAL BANKS 6.7% Associated Banc-Corp. ...... 86,189 1,252,326 Cathay General Bancorp...... 177,698 2,198,124 Synovus Financial Corp. .... 263,033 791,729 Wilmington Trust Corp. ..... 35,923 622,546 ----------- TOTAL COMMERCIAL BANKS 4,864,725 ----------- COMMERCIAL SERVICES & SUPPLIES 0.7% Brink's Co.(The)............ 19,575 521,282 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 521,282 ----------- COMPUTERS & PERIPHERALS 1.8% Diebold, Inc. .............. 13,219 414,416 NCR Corp.*.................. 67,426 887,326 ----------- TOTAL COMPUTERS & PERIPHERALS 1,301,742 ----------- CONSTRUCTION & ENGINEERING 6.0% Aecom Technology Corp.*..... 18,949 569,796 Granite Construction, Inc. .................... 19,418 652,639 KBR, Inc. .................. 54,618 1,205,966 Shaw Group, Inc.(The)*...... 20,719 793,123 URS Corp.*.................. 23,046 1,183,412 ----------- TOTAL CONSTRUCTION & ENGINEERING 4,404,936 ----------- DIVERSIFIED CONSUMER SERVICES 1.9% Regis Corp. ................ 74,349 1,421,553 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 1,421,553 ----------- ELECTRIC UTILITIES 3.9% Great Plains Energy, Inc. .. 28,120 543,560 Hawaiian Electric Industries, Inc. ........ 23,662 552,508 NV Energy, Inc. ............ 50,345 628,809 PNM Resources, Inc. ........ 52,564 714,345 Westar Energy, Inc. ........ 17,424 412,774 ----------- TOTAL ELECTRIC UTILITIES 2,851,996 ----------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 5.7% Arrow Electronics, Inc.*.... 35,727 1,089,674 Avnet, Inc.*................ 16,720 534,538 Ingram Micro, Inc. -- Class A*................. 66,517 1,207,949 Tech Data Corp.*............ 30,105 1,291,504 ----------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 4,123,665 ----------- ENERGY EQUIPMENT & SERVICES 0.5% Patterson-UTI Energy, Inc. .................... 25,793 394,375 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 394,375 ----------- FOOD & STAPLES RETAILING 3.2% BJ's Wholesale Club, Inc.*.. 34,759 1,330,575 Ruddick Corp. .............. 27,798 982,381 ----------- TOTAL FOOD & STAPLES RETAILING 2,312,956 ----------- FOOD PRODUCTS 3.5% Corn Products International, Inc. .................... 18,030 649,080 Ralcorp Holdings, Inc.*..... 6,287 418,400 Smithfield Foods, Inc.*..... 77,820 1,458,347 ----------- TOTAL FOOD PRODUCTS 2,525,827 ----------- GAS UTILITIES 2.3% Atmos Energy Corp. ......... 20,787 614,879 UGI Corp. .................. 22,332 613,907 WGL Holdings, Inc. ......... 12,212 436,457 ----------- TOTAL GAS UTILITIES 1,665,243 ----------- HEALTH CARE PROVIDERS & SERVICES 9.2% Health Net, Inc.*........... 56,622 1,246,817 Kindred Healthcare, Inc.*... 126,473 2,256,278 LifePoint Hospitals, Inc.*.. 22,723 867,564 Omnicare, Inc. ............. 40,391 1,122,466 Owens & Minor, Inc. ........ 37,707 1,185,885 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 6,679,010 ----------- HOTELS, RESTAURANTS & LEISURE 3.0% Bob Evans Farms, Inc. ...... 17,766 549,502 Boyd Gaming Corp.*.......... 80,215 1,018,730 Brinker International, Inc. .................... 31,855 589,955 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 2,158,187 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.4% Dynegy, Inc. -- Class A*.... 768,944 1,022,696 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1,022,696 ----------- INSURANCE 7.5% American Financial Group, Inc. .................... 20,357 599,106 First American Corp. ....... 16,632 574,968 Hanover Insurance Group, Inc.(The)................ 8,291 373,510 HCC Insurance Holdings, Inc. .................... 11,743 319,292 Horace Mann Educators Corp. ................... 43,256 744,436 Old Republic International Corp. ................... 36,265 544,338 Protective Life Corp. ...... 19,565 470,929 Reinsurance Group of America, Inc. ........... 10,550 544,696 StanCorp Financial Group, Inc. .................... 10,061 452,343 Unitrin, Inc. .............. 30,115 880,864 ----------- TOTAL INSURANCE 5,504,482 ----------- IT SERVICES 1.2% Convergys Corp.*............ 33,185 419,458 SRA International, Inc. -- Class A*......... 18,519 427,419 ----------- TOTAL IT SERVICES 846,877 ----------- MACHINERY 9.5% AGCO Corp.*................. 26,331 922,112 Federal Signal Corp. ....... 204,910 1,651,575 Terex Corp.*................ 75,649 2,006,211 Timken Co. ................. 25,353 891,919 Trinity Industries, Inc. ... 59,888 1,490,612 ----------- TOTAL MACHINERY 6,962,429 ----------- MARINE 0.7% Alexander & Baldwin, Inc. .. 13,865 493,317 ----------- TOTAL MARINE 493,317 -----------
See Notes to Financial Statements. 26 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS (CONCLUDED) MEDIA 1.4% Harte-Hanks, Inc. .......... 35,385 $509,544 Scholastic Corp. ........... 18,118 489,367 ----------- TOTAL MEDIA 998,911 ----------- METALS & MINING 2.1% Commercial Metals Co. ...... 57,932 862,028 Worthington Industries, Inc. .................... 39,824 635,989 ----------- TOTAL METALS & MINING 1,498,017 ----------- MULTI-UTILITIES 1.3% Alliant Energy Corp. ....... 15,175 518,985 Black Hills Corp. .......... 14,099 463,716 ----------- TOTAL MULTI-UTILITIES 982,701 ----------- MULTILINE RETAIL 1.9% Saks, Inc.*................. 143,867 1,402,703 ----------- TOTAL MULTILINE RETAIL 1,402,703 ----------- OIL, GAS & CONSUMABLE FUELS 5.8% Frontier Oil Corp. ......... 120,929 1,838,121 Overseas Shipholding Group, Inc. .................... 27,299 1,366,588 Patriot Coal Corp.*......... 53,405 1,051,544 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 4,256,253 ----------- PROFESSIONAL SERVICES 1.7% Manpower, Inc. ............. 21,824 1,224,326 ----------- TOTAL PROFESSIONAL SERVICES 1,224,326 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 0.8% Hospitality Properties Trust.................... 21,716 575,257 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 575,257 ----------- ROAD & RAIL 1.0% Con-way, Inc. .............. 19,418 754,195 ----------- TOTAL ROAD & RAIL 754,195 ----------- SPECIALTY RETAIL 6.7% Barnes & Noble, Inc. ....... 51,596 1,137,176 Coldwater Creek, Inc.*...... 105,578 747,492 Foot Locker, Inc. .......... 120,225 1,845,454 Rent-A-Center, Inc.*........ 44,605 1,151,701 ----------- TOTAL SPECIALTY RETAIL 4,881,823 ----------- THRIFTS & MORTGAGE FINANCE 1.3% Astoria Financial Corp. .... 57,179 922,869 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 922,869 ----------- TOBACCO 1.0% Universal Corp. ............ 14,187 734,603 ----------- TOTAL TOBACCO 734,603 ----------- TRADING COMPANIES & DISTRIBUTORS 0.5% GATX Corp. ................. 10,716 349,770 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 349,770 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.8% Telephone & Data Systems, Inc. .................... 16,671 577,817 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 577,817 ----------- TOTAL COMMON STOCKS (Cost $64,526,579) 72,744,954 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund..................... 70,044 70,044 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $70,044) 70,044 ----------- TOTAL INVESTMENTS 99.9%(A) (Cost $64,596,623) 72,814,998 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 61,810 ----------- NET ASSETS--100.0% $72,876,808 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 98.6% AEROSPACE & DEFENSE 1.3% BE Aerospace, Inc.*......... 99,350 $2,951,688 ------------ TOTAL AEROSPACE & DEFENSE 2,951,688 ------------ AUTO COMPONENTS 0.6% Gentex Corp. ............... 64,332 1,382,495 ------------ TOTAL AUTO COMPONENTS 1,382,495 ------------ BEVERAGES 1.0% Hansen Natural Corp.*....... 53,302 2,349,552 ------------ TOTAL BEVERAGES 2,349,552 ------------ BIOTECHNOLOGY 2.5% OSI Pharmaceuticals, Inc.*.. 47,326 2,776,616 United Therapeutics Corp.*.. 53,921 3,067,566 ------------ TOTAL BIOTECHNOLOGY 5,844,182 ------------ CAPITAL MARKETS 2.0% Affiliated Managers Group, Inc.*.................... 21,400 1,801,452 Waddell & Reed Financial, Inc. -- Class A.......... 75,271 2,794,059 ------------ TOTAL CAPITAL MARKETS 4,595,511 ------------ CHEMICALS 2.5% Lubrizol Corp. ............. 16,946 1,530,902 NewMarket Corp. ............ 38,396 4,223,560 ------------ TOTAL CHEMICALS 5,754,462 ------------ COMMUNICATIONS EQUIPMENT 4.1% CommScope, Inc.*............ 113,353 3,693,041 F5 Networks, Inc.*.......... 43,440 2,972,599 Polycom, Inc.*.............. 82,435 2,683,259 ------------ TOTAL COMMUNICATIONS EQUIPMENT 9,348,899 ------------ CONSUMER FINANCE 0.9% AmeriCredit Corp.*.......... 84,921 2,033,009 ------------ TOTAL CONSUMER FINANCE 2,033,009 ------------ CONTAINERS & PACKAGING 0.6% Greif, Inc. -- Class A...... 23,460 1,388,363 ------------ TOTAL CONTAINERS & PACKAGING 1,388,363 ------------ DISTRIBUTORS 1.4% LKQ Corp.*.................. 149,192 3,141,984 ------------ TOTAL DISTRIBUTORS 3,141,984 ------------ DIVERSIFIED CONSUMER SERVICES 1.7% ITT Educational Services, Inc.*.................... 11,304 1,143,173 Sotheby's................... 54,683 1,826,412 Strayer Education, Inc. .... 4,373 1,063,164 ------------ TOTAL DIVERSIFIED CONSUMER SERVICES 4,032,749 ------------ DIVERSIFIED FINANCIAL SERVICES 0.7% MSCI, Inc. -- Class A*...... 48,097 1,666,561 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 1,666,561 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 0.8% tw telecom, Inc.*........... 109,000 1,940,200 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 1,940,200 ------------ ELECTRICAL EQUIPMENT 1.6% AMETEK, Inc. ............... 26,322 1,138,427 Thomas & Betts Corp.*....... 62,161 2,607,032 ------------ TOTAL ELECTRICAL EQUIPMENT 3,745,459 ------------ ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 1.1% Itron, Inc.*................ 31,060 2,472,687 ------------ TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 2,472,687 ------------ ENERGY EQUIPMENT & SERVICES 4.8% Atwood Oceanics, Inc.*...... 105,885 3,855,273 Oceaneering International, Inc.*.................... 61,735 4,043,642 Superior Energy Services, Inc.*.................... 116,042 3,140,097 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 11,039,012 ------------ FOOD PRODUCTS 2.1% Green Mountain Coffee Roasters, Inc.*.......... 67,874 4,931,725 ------------ TOTAL FOOD PRODUCTS 4,931,725 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 3.3% Edwards Lifesciences Corp.*................... 11,578 1,193,460 Idexx Laboratories, Inc.*... 38,153 2,523,440 Kinetic Concepts, Inc.*..... 37,148 1,608,508 Masimo Corp. ............... 53,018 1,241,151 ResMed, Inc.*............... 15,890 1,087,353 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 7,653,912 ------------ HEALTH CARE PROVIDERS & SERVICES 5.8% Community Health Systems, Inc.*.................... 128,655 5,256,843 Lincare Holdings, Inc.*..... 53,576 2,501,464 MEDNAX, Inc.*............... 44,120 2,423,953 WellCare Health Plans, Inc.*.................... 109,527 3,135,758 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 13,318,018 ------------ HOTELS, RESTAURANTS & LEISURE 8.1% Bally Technologies, Inc.*... 78,396 3,615,624 Cheesecake Factory, Inc.(The)*............... 163,581 4,444,496 Chipotle Mexican Grill, Inc. -- Class A*......... 22,973 3,099,287 Life Time Fitness, Inc.*.... 80,212 2,948,593 Panera Bread Co. -- Class A*................. 35,383 2,757,751 WMS Industries, Inc.*....... 34,419 1,721,638 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 18,587,389 ------------ HOUSEHOLD DURABLES 1.4% Tupperware Brands Corp. .... 63,054 3,220,168 ------------ TOTAL HOUSEHOLD DURABLES 3,220,168 ------------ INTERNET & CATALOG RETAIL 2.7% NetFlix, Inc.*.............. 63,348 6,256,882 ------------ TOTAL INTERNET & CATALOG RETAIL 6,256,882 ------------ INTERNET SOFTWARE & SERVICES 2.0% Equinix, Inc.*.............. 35,423 3,565,325 ValueClick, Inc.*........... 111,831 1,149,623 ------------ TOTAL INTERNET SOFTWARE & SERVICES 4,714,948 ------------ IT SERVICES 2.4% Alliance Data Systems Corp.*................... 16,956 1,272,717 Broadridge Financial Solutions, Inc. ......... 36,956 879,922 Gartner, Inc.*.............. 49,903 1,201,664 Global Payments, Inc. ...... 29,254 1,252,364 NeuStar, Inc. -- Class A*... 35,565 870,276 ------------ TOTAL IT SERVICES 5,476,943 ------------
See Notes to Financial Statements. 28 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) LIFE SCIENCES TOOLS & SERVICES 1.0% Covance, Inc.*.............. 16,225 $927,096 Mettler Toledo International, Inc.*..... 11,152 1,399,353 ------------ TOTAL LIFE SCIENCES TOOLS & SERVICES 2,326,449 ------------ MACHINERY 5.1% Bucyrus International, Inc. -- Class A.......... 84,494 5,323,967 Joy Global, Inc. ........... 52,744 2,996,387 Nordson Corp. .............. 13,841 994,060 Oshkosh Corp.*.............. 23,907 923,288 Valmont Industries, Inc. ... 17,199 1,432,505 ------------ TOTAL MACHINERY 11,670,207 ------------ MARINE 0.7% Kirby Corp.*................ 37,006 1,557,212 ------------ TOTAL MARINE 1,557,212 ------------ MEDIA 1.4% DreamWorks Animation SKG, Inc. -- Class A*......... 36,408 1,445,034 Lamar Advertising Co. -- Class A*.......... 47,001 1,749,377 ------------ TOTAL MEDIA 3,194,411 ------------ METALS & MINING 3.1% Reliance Steel & Aluminum Co. ..................... 84,789 4,138,551 Steel Dynamics, Inc. ....... 195,321 3,068,493 ------------ TOTAL METALS & MINING 7,207,044 ------------ MULTILINE RETAIL 0.5% Dollar Tree, Inc.*.......... 19,634 1,192,176 ------------ TOTAL MULTILINE RETAIL 1,192,176 ------------ OIL, GAS & CONSUMABLE FUELS 2.8% Bill Barrett Corp.*......... 82,222 2,802,126 Plains Exploration & Production Co.*.......... 30,928 906,500 Quicksilver Resources, Inc.*.................... 206,158 2,859,411 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 6,568,037 ------------ PERSONAL PRODUCTS 1.2% NBTY, Inc.*................. 67,092 2,729,303 ------------ TOTAL PERSONAL PRODUCTS 2,729,303 ------------ PHARMACEUTICALS 0.6% Medicis Pharmaceutical Corp. -- Class A......... 51,293 1,301,816 ------------ TOTAL PHARMACEUTICALS 1,301,816 ------------ PROFESSIONAL SERVICES 0.5% FTI Consulting, Inc.*....... 29,406 1,209,469 ------------ TOTAL PROFESSIONAL SERVICES 1,209,469 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 1.6% SL Green Realty Corp. ...... 58,011 3,606,544 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 3,606,544 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 1.9% Jones Lang LaSalle, Inc. ... 56,012 4,418,227 ------------ TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 4,418,227 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.0% Cree, Inc.*................. 37,463 2,742,666 Semtech Corp.*.............. 53,607 972,967 Silicon Laboratories, Inc.*.................... 19,980 966,033 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4,681,666 ------------ SOFTWARE 7.3% Advent Software, Inc.*...... 57,229 2,585,606 Ansys, Inc.*................ 53,759 2,419,155 Factset Research Systems, Inc. .................... 28,533 2,146,252 Informatica Corp.*.......... 76,570 1,915,016 MICROS Systems, Inc.*....... 31,699 1,177,935 Rovi Corp.*................. 48,209 1,879,187 Solera Holdings, Inc. ...... 83,571 3,248,405 Sybase, Inc.*............... 35,078 1,521,683 ------------ TOTAL SOFTWARE 16,893,239 ------------ SPECIALTY RETAIL 9.6% Aeropostale, Inc.*.......... 159,075 4,619,538 CarMax, Inc.*............... 80,557 1,979,285 Chico's FAS, Inc. .......... 118,923 1,770,763 Collective Brands, Inc.*.... 93,424 2,190,793 Dress Barn, Inc.(The)*...... 91,932 2,544,678 Guess?, Inc. ............... 100,902 4,628,375 J. Crew Group, Inc.*........ 55,545 2,581,176 Williams-Sonoma, Inc. ...... 64,992 1,871,770 ------------ TOTAL SPECIALTY RETAIL 22,186,378 ------------ TEXTILES, APPAREL & LUXURY GOODS 3.3% Fossil, Inc.*............... 74,875 2,912,638 Under Armour, Inc. -- Class A*................. 65,144 2,198,610 Warnaco Group, Inc.*........ 51,111 2,445,150 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 7,556,398 ------------ WIRELESS TELECOMMUNICATION SERVICES 0.6% Syniverse Holdings, Inc.*... 73,414 1,474,153 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 1,474,153 ------------ TOTAL COMMON STOCKS (Cost $205,123,191) 227,619,527 ------------ SHORT TERM INVESTMENTS 0.0%(A) SSgA Government Money Market Fund..................... 96,808 96,808 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $96,808) 96,808 ------------ TOTAL INVESTMENTS 98.6%(B) (Cost $205,219,999) 227,716,335 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--1.4% 3,222,615 ------------ NET ASSETS--100.0% $230,938,950 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. (b) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 99.8% AEROSPACE & DEFENSE 1.3% AAR Corp.*................. 31,611 $770,676 Ceradyne, Inc.*............ 51,398 1,141,036 Moog, Inc.-Class A*........ 17,779 660,845 ------------ TOTAL AEROSPACE & DEFENSE 2,572,557 ------------ AIRLINES 0.9% SkyWest, Inc. ............. 114,855 1,720,528 ------------ TOTAL AIRLINES 1,720,528 ------------ AUTO COMPONENTS 1.0% Standard Motor Products, Inc. ................... 122,219 1,302,854 Superior Industries International, Inc. .... 37,374 630,126 ------------ TOTAL AUTO COMPONENTS 1,932,980 ------------ BUILDING PRODUCTS 3.7% Apogee Enterprises, Inc. .. 50,529 694,268 Gibraltar Industries, Inc.*................... 70,672 1,061,493 Griffon Corp.*............. 54,289 765,475 NCI Building Systems, Inc.*................... 295,366 4,070,144 Universal Forest Products, Inc. ................... 19,711 828,848 ------------ TOTAL BUILDING PRODUCTS 7,420,228 ------------ CAPITAL MARKETS 1.0% LaBranche & Co., Inc.*..... 334,158 1,650,741 SWS Group, Inc. ........... 40,161 444,582 ------------ TOTAL CAPITAL MARKETS 2,095,323 ------------ CHEMICALS 1.8% A. Schulman, Inc. ......... 44,710 1,162,907 OM Group, Inc.*............ 27,060 1,021,515 Penford Corp.*............. 61,679 570,531 Quaker Chemical Corp. ..... 26,841 844,686 ------------ TOTAL CHEMICALS 3,599,639 ------------ COMMERCIAL BANKS 11.3% East West Bancorp, Inc. ... 36,816 721,225 First BanCorp. ............ 1,058,010 2,242,981 First Commonwealth Financial Corp. ........ 257,323 1,685,466 First Midwest Bancorp, Inc. ................... 60,643 921,774 Hanmi Financial Corp.*..... 809,782 2,413,150 National Penn Bancshares, Inc. ................... 231,673 1,695,846 Pinnacle Financial Partners, Inc.*......... 91,381 1,396,302 South Financial Group, Inc. ................... 1,703,572 1,311,751 Sterling Bancorp........... 66,231 709,334 Sterling Bancshares, Inc. ................... 149,684 880,142 Susquehanna Bancshares, Inc. ................... 267,082 2,911,194 Umpqua Holdings Corp. ..... 74,378 1,111,207 United Community Banks, Inc.*................... 267,854 1,564,267 Whitney Holding Corp. ..... 165,210 2,263,377 Wintrust Financial Corp. .. 17,363 647,640 ------------ TOTAL COMMERCIAL BANKS 22,475,656 ------------ COMMERCIAL SERVICES & SUPPLIES 3.4% ABM Industries, Inc. ...... 49,936 1,073,125 Bowne & Co., Inc. ......... 183,439 2,050,848 Standard Register Co.(The)................ 191,697 987,239 United Stationers, Inc.*... 17,055 1,044,107 Viad Corp. ................ 65,604 1,535,134 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 6,690,453 ------------ COMMUNICATIONS EQUIPMENT 1.3% Black Box Corp. ........... 32,918 1,026,713 Digi International, Inc.*.. 48,975 524,522 EMS Technologies, Inc.*.... 65,864 1,046,579 ------------ TOTAL COMMUNICATIONS EQUIPMENT 2,597,814 ------------ CONSTRUCTION & ENGINEERING 1.8% Comfort Systems USA, Inc. ................... 61,436 865,019 Dycom Industries, Inc.*.... 120,411 1,278,765 EMCOR Group, Inc.*......... 48,860 1,395,441 ------------ TOTAL CONSTRUCTION & ENGINEERING 3,539,225 ------------ CONSUMER FINANCE 0.4% Rewards Network, Inc. ..... 57,076 743,129 ------------ TOTAL CONSUMER FINANCE 743,129 ------------ CONTAINERS & PACKAGING 0.3% Myers Industries, Inc. .... 47,655 517,533 ------------ TOTAL CONTAINERS & PACKAGING 517,533 ------------ DISTRIBUTORS 0.8% Audiovox Corp. -- Class A*................ 161,716 1,505,576 ------------ TOTAL DISTRIBUTORS 1,505,576 ------------ ELECTRIC UTILITIES 0.3% Central Vermont Public Service Corp. .......... 25,828 563,309 ------------ TOTAL ELECTRIC UTILITIES 563,309 ------------ ELECTRICAL EQUIPMENT 0.4% Encore Wire Corp. ......... 32,084 712,586 ------------ TOTAL ELECTRICAL EQUIPMENT 712,586 ------------ ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 3.0% CTS Corp. ................. 70,621 741,520 Gerber Scientific, Inc.*... 327,978 2,361,442 Insight Enterprises, Inc.*................... 48,051 722,207 Scansource, Inc.*.......... 30,635 853,491 SYNNEX Corp.*.............. 50,764 1,391,949 ------------ TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 6,070,609 ------------ ENERGY EQUIPMENT & SERVICES 3.3% Basic Energy Services, Inc.*................... 300,917 3,072,362 Bristow Group, Inc.*....... 11,611 449,462 Matrix Service Co.*........ 96,718 1,028,112 Pioneer Drilling Co.*...... 70,149 514,894 Seahawk Drilling, Inc.*.... 94,789 1,579,185 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 6,644,015 ------------ FOOD & STAPLES RETAILING 2.4% Casey's General Stores, Inc. ................... 12,910 498,713 Great Atlantic & Pacific Tea Co., Inc.*.......... 64,055 515,643 Nash Finch Co. ............ 43,730 1,531,424 Spartan Stores, Inc. ...... 106,952 1,613,906 United Natural Foods, Inc.*................... 21,616 663,395 ------------ TOTAL FOOD & STAPLES RETAILING 4,823,081 ------------ GAS UTILITIES 0.8% Laclede Group, Inc. ....... 21,532 733,810 New Jersey Resources Corp. .................. 10,909 411,597 Southwest Gas Corp. ....... 16,940 526,834 ------------ TOTAL GAS UTILITIES 1,672,241 ------------
See Notes to Financial Statements. 30 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) HEALTH CARE EQUIPMENT & SUPPLIES 1.3% Osteotech, Inc.*........... 474,033 $2,014,640 Symmetry Medical, Inc.*.... 51,018 589,768 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,604,408 ------------ HEALTH CARE PROVIDERS & SERVICES 6.3% AMERIGROUP Corp.*.......... 29,360 1,064,006 AMN Healthcare Services, Inc.*................... 200,187 1,829,709 Centene Corp.*............. 57,633 1,319,796 Gentiva Health Services, Inc.*................... 18,385 527,282 Healthspring, Inc.*........ 39,180 689,568 MedCath Corp.*............. 200,001 1,988,010 Molina Healthcare, Inc.*... 78,746 2,297,021 PharMerica Corp.*.......... 71,192 1,374,006 Res-Care, Inc.*............ 129,043 1,502,060 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 12,591,458 ------------ HOTELS, RESTAURANTS & LEISURE 3.5% CKE Restaurants, Inc. ..... 74,317 917,072 Landry's Restaurants, Inc.*................... 47,057 1,086,546 O'Charleys, Inc.*.......... 91,483 873,663 Red Robin Gourmet Burgers, Inc.*................... 83,779 2,045,045 Ruby Tuesday, Inc.*........ 186,440 2,086,264 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 7,008,590 ------------ HOUSEHOLD DURABLES 0.8% Blyth, Inc. ............... 26,580 1,532,071 ------------ TOTAL HOUSEHOLD DURABLES 1,532,071 ------------ HOUSEHOLD PRODUCTS 0.5% Central Garden & Pet Co. -- Class A*......... 97,890 1,011,204 ------------ TOTAL HOUSEHOLD PRODUCTS 1,011,204 ------------ INDUSTRIAL CONGLOMERATES 0.6% Standex International Corp. .................. 26,890 641,864 Tredegar Corp. ............ 28,730 490,134 ------------ TOTAL INDUSTRIAL CONGLOMERATES 1,131,998 ------------ INSURANCE 3.7% National Financial Partners Corp.*.................. 232,598 3,579,683 Presidential Life Corp. ... 63,581 748,984 Safety Insurance Group, Inc. ................... 12,224 455,833 Selective Insurance Group, Inc. ................... 45,118 753,922 Stewart Information Services Corp. ......... 90,548 1,030,436 United Fire & Casualty Co. ........... 31,139 712,149 ------------ TOTAL INSURANCE 7,281,007 ------------ IT SERVICES 2.3% Ciber, Inc.*............... 825,758 3,278,259 Heartland Payment Systems, Inc. ................... 73,062 1,342,880 ------------ TOTAL IT SERVICES 4,621,139 ------------ LEISURE EQUIPMENT & PRODUCTS 4.3% Arctic Cat, Inc.*.......... 221,361 3,265,075 Callaway Golf Co. ......... 155,409 1,459,290 JAKKS Pacific, Inc.*....... 164,133 2,509,594 Nautilus, Inc.*............ 368,732 1,261,063 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 8,495,022 ------------ LIFE SCIENCES TOOLS & SERVICES 0.5% Kendle International, Inc.*................... 60,256 997,237 ------------ TOTAL LIFE SCIENCES TOOLS & SERVICES 997,237 ------------ MACHINERY 3.0% Astec Industries, Inc.*.... 17,492 579,335 Briggs & Stratton Corp. ... 22,636 537,378 Cascade Corp. ............. 21,244 740,566 EnPro Industries, Inc.*.... 33,419 1,055,372 Lydall, Inc.*.............. 268,261 2,162,184 Mueller Industries, Inc. .. 33,968 1,007,151 ------------ TOTAL MACHINERY 6,081,986 ------------ MEDIA 0.5% Live Nation, Inc.*......... 69,069 1,083,693 ------------ TOTAL MEDIA 1,083,693 ------------ METALS & MINING 2.1% AM Castle & Co.*........... 111,758 1,533,320 Century Aluminum Co.*...... 77,172 1,040,279 Olympic Steel, Inc. ....... 47,753 1,517,590 ------------ TOTAL METALS & MINING 4,091,189 ------------ MULTI-UTILITIES 0.2% CH Energy Group, Inc. ..... 11,626 481,549 ------------ TOTAL MULTI-UTILITIES 481,549 ------------ MULTILINE RETAIL 3.8% Fred's, Inc. -- Class A.... 161,751 2,246,721 Tuesday Morning Corp.*..... 939,490 5,308,119 ------------ TOTAL MULTILINE RETAIL 7,554,840 ------------ OIL, GAS & CONSUMABLE FUELS 2.3% Penn Virginia Corp. ....... 47,815 1,219,761 Petroleum Development Corp.*.................. 94,774 2,218,659 World Fuel Services Corp. .................. 41,720 1,186,100 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 4,624,520 ------------ PERSONAL PRODUCTS 0.7% Mannatech, Inc. ........... 374,596 1,445,941 ------------ TOTAL PERSONAL PRODUCTS 1,445,941 ------------ PROFESSIONAL SERVICES 5.1% CDI Corp. ................. 139,642 2,433,960 Kelly Services, Inc. -- Class A*........ 155,046 2,493,140 School Specialty, Inc.*.... 39,868 935,303 SFN Group, Inc.*........... 166,065 1,419,856 Volt Information Sciences, Inc.*................... 227,385 2,851,408 ------------ TOTAL PROFESSIONAL SERVICES 10,133,667 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 3.9% Cedar Shopping Centers, Inc. ................... 121,192 964,688 Colonial Properties Trust.. 44,010 694,038 Kite Realty Group Trust.... 404,854 2,194,308 Lexington Realty Trust..... 209,248 1,481,476 Pennsylvania Real Estate Investment Trust........ 156,986 2,478,809 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 7,813,319 ------------ ROAD & RAIL 0.5% Arkansas Best Corp. ....... 33,174 1,010,480 ------------ TOTAL ROAD & RAIL 1,010,480 ------------ SPECIALTY RETAIL 7.3% Brown Shoe Co., Inc. ...... 80,177 1,507,328 Cabela's, Inc.*............ 98,334 1,785,745 Christopher & Banks Corp. .................. 103,417 1,012,452 Finish Line, Inc. -- Class A....................... 72,591 1,169,441 Group 1 Automotive, Inc.*.. 53,389 1,657,728 Haverty Furniture Cos., Inc. ................... 51,337 836,793
See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONCLUDED) Hot Topic, Inc. ........... 178,779 $1,365,872 Lithia Motors, Inc. -- Class A*........ 90,851 724,991 MarineMax, Inc.*........... 78,586 876,234 PEP Boys-Manny Moe & Jack.. 151,016 1,892,231 Stage Stores, Inc. ........ 55,833 851,453 Zale Corp.*................ 291,138 949,110 ------------ TOTAL SPECIALTY RETAIL 14,629,378 ------------ TEXTILES, APPAREL & LUXURY GOODS 6.2% K-Swiss, Inc. -- Class A*.. 43,172 537,060 Movado Group, Inc.*........ 102,956 1,277,684 Perry Ellis International, Inc.*................... 103,256 2,491,567 Quiksilver, Inc.*.......... 1,520,676 8,105,203 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 12,411,514 ------------ TOBACCO 0.8% Alliance One International, Inc.*................... 325,449 1,656,535 ------------ TOTAL TOBACCO 1,656,535 ------------ TRADING COMPANIES & DISTRIBUTORS 0.4% Lawson Products, Inc. ..... 53,450 868,562 ------------ TOTAL TRADING COMPANIES & DISTRIBUTORS 868,562 ------------ TOTAL COMMON STOCKS (Cost $173,404,615) 199,057,789 ------------ SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund............. 129,507 129,507 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $129,507) 129,507 ------------ TOTAL INVESTMENTS 99.9%(A) (Cost $173,534,122) 199,187,296 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 237,594 ------------ NET ASSETS--100.0% $199,424,890 -------------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. 32 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% AEROSPACE & DEFENSE 1.0% GenCorp, Inc.*............... 18,751 $116,631 Stanley, Inc.*............... 3,800 120,194 ----------- TOTAL AEROSPACE & DEFENSE 236,825 ----------- AIRLINES 0.5% Allegiant Travel Co.*........ 2,310 118,803 ----------- TOTAL AIRLINES 118,803 ----------- BEVERAGES 0.6% Boston Beer Co., Inc. -- Class A*.......... 2,270 129,413 ----------- TOTAL BEVERAGES 129,413 ----------- BIOTECHNOLOGY 1.3% Cubist Pharmaceuticals, Inc.*..................... 5,330 119,499 Regeneron Pharmaceuticals, Inc.*..................... 7,121 181,799 ----------- TOTAL BIOTECHNOLOGY 301,298 ----------- BUILDING PRODUCTS 0.3% AAON, Inc. .................. 2,870 69,282 ----------- TOTAL BUILDING PRODUCTS 69,282 ----------- CAPITAL MARKETS 1.6% optionsXpress Holdings, Inc.*..................... 8,681 154,088 Stifel Financial Corp.*...... 2,550 146,191 TradeStation Group, Inc.*.... 7,811 65,300 ----------- TOTAL CAPITAL MARKETS 365,579 ----------- CHEMICALS 0.7% Balchem Corp. ............... 6,171 160,076 ----------- TOTAL CHEMICALS 160,076 ----------- COMMERCIAL BANKS 0.5% Signature Bank*.............. 3,090 124,774 ----------- TOTAL COMMERCIAL BANKS 124,774 ----------- COMMERCIAL SERVICES & SUPPLIES 0.5% SYKES Enterprises, Inc.*..... 3,360 76,373 Tetra Tech, Inc.*............ 1,860 45,291 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 121,664 ----------- COMMUNICATIONS EQUIPMENT 1.9% Blue Coat Systems, Inc.*..... 9,951 323,706 NETGEAR, Inc.*............... 4,290 116,087 ----------- TOTAL COMMUNICATIONS EQUIPMENT 439,793 ----------- COMPUTERS & PERIPHERALS 2.4% Compellent Technologies, Inc.*..................... 9,861 123,953 Novatel Wireless, Inc.*...... 24,402 167,154 Stratasys, Inc.*............. 4,410 105,134 Synaptics, Inc.*............. 5,390 165,042 ----------- TOTAL COMPUTERS & PERIPHERALS 561,283 ----------- CONSUMER FINANCE 1.6% Cash America International, Inc. ..................... 2,870 106,362 First Cash Financial Services, Inc.*........... 4,450 98,167 World Acceptance Corp.*...... 4,600 162,288 ----------- TOTAL CONSUMER FINANCE 366,817 ----------- DIVERSIFIED CONSUMER SERVICES 1.4% Capella Education Co.*....... 1,050 95,151 Coinstar, Inc.*.............. 5,130 227,567 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 322,718 ----------- DIVERSIFIED FINANCIAL SERVICES 0.7% Portfolio Recovery Associates, Inc.*......... 2,530 168,169 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 168,169 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.4% Cbeyond, Inc.*............... 6,311 97,063 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 97,063 ----------- ELECTRICAL EQUIPMENT 1.9% AZZ, Inc. ................... 4,810 195,382 Baldor Electric Co. ......... 6,190 237,758 ----------- TOTAL ELECTRICAL EQUIPMENT 433,140 ----------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 1.6% FARO Technologies, Inc.*..... 2,590 65,294 Mercury Computer Systems, Inc.*..................... 8,691 111,766 TTM Technologies, Inc.*...... 16,581 180,070 ----------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 357,130 ----------- ENERGY EQUIPMENT & SERVICES 5.9% CARBO Ceramics, Inc. ........ 960 70,320 Dril-Quip, Inc.*............. 3,480 201,596 Gulf Island Fabrication, Inc. ..................... 7,381 176,923 Hornbeck Offshore Services, Inc.*..................... 7,651 187,220 Lufkin Industries, Inc. ..... 900 76,617 Oil States International, Inc.*..................... 5,080 245,415 Superior Well Services, Inc.*..................... 11,691 169,519 TETRA Technologies, Inc.*.... 19,152 235,378 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 1,362,988 ----------- FOOD & STAPLES RETAILING 1.3% Andersons, Inc.(The)......... 8,241 297,830 ----------- TOTAL FOOD & STAPLES RETAILING 297,830 ----------- FOOD PRODUCTS 3.5% Cal-Maine Foods, Inc. ....... 4,440 148,207 Calavo Growers, Inc. ........ 5,660 98,144 Darling International, Inc.*..................... 23,622 224,173 Sanderson Farms, Inc. ....... 2,560 145,075 TreeHouse Foods, Inc.*....... 4,660 197,072 ----------- TOTAL FOOD PRODUCTS 812,671 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 4.8% Abaxis, Inc.*................ 3,740 96,903 Align Technology, Inc.*...... 9,321 158,271 American Medical Systems Holdings, Inc.*........... 10,151 181,906 Cantel Medical Corp. ........ 4,930 98,403 Cooper Cos., Inc.(The)....... 3,930 152,838 Integra LifeSciences Holdings Corp.*.................... 3,270 148,556 Natus Medical, Inc.*......... 8,571 146,050 Neogen Corp.*................ 2,660 69,931 Zoll Medical Corp.*.......... 2,040 62,322 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,115,180 ----------- HEALTH CARE PROVIDERS & SERVICES 8.0% Air Methods Corp.*........... 3,910 129,343 Almost Family, Inc.*......... 1,660 70,317 Amedisys, Inc.*.............. 2,750 158,345 Bio-Reference Labs, Inc.*.... 4,620 108,108 Catalyst Health Solutions, Inc.*..................... 4,780 202,242 Genoptix, Inc.*.............. 3,830 148,183 Healthways, Inc.*............ 11,351 184,908 HMS Holdings Corp.*.......... 3,580 191,530 IPC The Hospitalist Co., Inc.*..................... 6,220 193,069
See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS (CONTINUED) LHC Group, Inc.*............. 2,940 $100,254 Odyssey HealthCare, Inc.*.... 9,661 201,239 RehabCare Group, Inc.*....... 5,480 156,289 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,843,827 ----------- HEALTH CARE TECHNOLOGY 1.0% Quality Systems, Inc. ....... 3,440 220,194 ----------- TOTAL HEALTH CARE TECHNOLOGY 220,194 ----------- HOTELS, RESTAURANTS & LEISURE 6.7% BJ's Restaurants, Inc.*...... 8,351 201,510 Buffalo Wild Wings, Inc.*.... 4,420 182,723 California Pizza Kitchen, Inc.*..................... 8,461 173,450 CEC Entertainment, Inc.*..... 4,420 172,601 Cracker Barrel Old Country Store, Inc. .............. 4,360 215,253 Interval Leisure Group, Inc.*..................... 5,910 87,409 P.F. Chang's China Bistro, Inc.*..................... 3,580 156,231 Peet's Coffee & Tea, Inc.*... 3,030 120,049 Texas Roadhouse, Inc.*....... 15,951 235,756 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 1,544,982 ----------- HOUSEHOLD DURABLES 1.1% National Presto Industries, Inc. ..................... 1,690 189,229 Universal Electronics, Inc.*..................... 2,960 62,811 ----------- TOTAL HOUSEHOLD DURABLES 252,040 ----------- INSURANCE 1.0% eHealth, Inc.*............... 9,401 128,888 Tower Group, Inc. ........... 4,490 103,539 ----------- TOTAL INSURANCE 232,427 ----------- INTERNET & CATALOG RETAIL 2.5% Blue Nile, Inc.*............. 3,550 191,664 HSN, Inc.*................... 6,130 184,697 NutriSystem, Inc. ........... 6,821 131,850 Stamps.com, Inc.*............ 5,590 59,254 ----------- TOTAL INTERNET & CATALOG RETAIL 567,465 ----------- INTERNET SOFTWARE & SERVICES 3.5% comScore, Inc.*.............. 12,311 223,445 DealerTrack Holdings, Inc.*.. 5,491 83,738 j2 Global Communications, Inc.*..................... 4,280 103,062 Knot, Inc.(The)*............. 4,720 38,279 Perficient, Inc.*............ 28,112 350,557 ----------- TOTAL INTERNET SOFTWARE & SERVICES 799,081 ----------- IT SERVICES 3.8% CSG Systems International, Inc.*..................... 5,650 128,368 Cybersource Corp.*........... 10,761 276,342 MAXIMUS, Inc. ............... 1,150 71,197 TeleTech Holdings, Inc.*..... 7,301 120,832 Wright Express Corp.*........ 8,131 276,210 ----------- TOTAL IT SERVICES 872,949 ----------- LEISURE EQUIPMENT & PRODUCTS 1.3% Polaris Industries, Inc. .... 1,510 89,347 Sturm Ruger & Co., Inc. ..... 12,971 216,486 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 305,833 ----------- LIFE SCIENCES TOOLS & SERVICES 0.8% Dionex Corp.*................ 930 75,860 Enzo Biochem, Inc.*.......... 16,161 96,481 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 172,341 ----------- MACHINERY 0.5% Gardner Denver, Inc. ........ 2,420 121,702 ----------- TOTAL MACHINERY 121,702 ----------- MEDIA 1.9% Arbitron, Inc. .............. 2,510 77,333 Dolan Media Co.*............. 30,857 366,890 ----------- TOTAL MEDIA 444,223 ----------- METALS & MINING 0.3% AMCOL International Corp. ... 2,770 79,610 ----------- TOTAL METALS & MINING 79,610 ----------- OIL, GAS & CONSUMABLE FUELS 0.5% St. Mary Land & Exploration Co. ...................... 2,800 112,672 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 112,672 ----------- PAPER & FOREST PRODUCTS 0.5% Schweitzer-Mauduit International, Inc. ...... 1,880 107,010 ----------- TOTAL PAPER & FOREST PRODUCTS 107,010 ----------- PHARMACEUTICALS 1.3% Par Pharmaceutical Cos., Inc.*..................... 4,000 108,560 Salix Pharmaceuticals Ltd.*.. 4,650 186,930 ----------- TOTAL PHARMACEUTICALS 295,490 ----------- PROFESSIONAL SERVICES 0.4% Heidrick & Struggles International, Inc. ...... 3,180 83,984 ----------- TOTAL PROFESSIONAL SERVICES 83,984 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 1.7% Acadia Realty Trust.......... 4,190 79,945 DiamondRock Hospitality Co.*...................... 16,691 183,434 Medical Properties Trust, Inc. ..................... 13,271 133,374 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 396,753 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.5% Forestar Real Estate Group, Inc.*..................... 5,320 119,913 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 119,913 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 6.5% Cymer, Inc.*................. 1,670 57,030 Diodes, Inc.*................ 11,381 244,350 Hittite Microwave Corp.*..... 3,660 187,685 Kopin Corp.*................. 22,852 96,207 Pericom Semiconductor Corp.*.................... 7,841 91,583 Sigma Designs, Inc.*......... 13,871 164,510 Skyworks Solutions, Inc.*.... 7,481 125,980 Tessera Technologies, Inc.*.. 7,291 147,861 TriQuint Semiconductor, Inc.*..................... 33,963 256,081 Veeco Instruments, Inc.*..... 2,940 129,331 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1,500,618 ----------- SOFTWARE 10.4% Blackbaud, Inc. ............. 7,041 162,295 Commvault Systems, Inc.*..... 8,101 169,716 Concur Technologies, Inc.*... 3,000 125,730 Ebix, Inc.*.................. 13,461 219,010 Epicor Software Corp.*....... 13,131 120,543 Interactive Intelligence, Inc.*..................... 11,281 223,025 JDA Software Group, Inc.*.... 4,710 136,119 Manhattan Associates, Inc.*.. 4,470 128,110 MicroStrategy, Inc. -- Class A*.................. 2,840 217,544 Netscout Systems, Inc.*...... 13,731 199,374
See Notes to Financial Statements. 34 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS (CONCLUDED) Radiant Systems, Inc.*....... 15,091 $212,330 Smith Micro Software, Inc.*.. 16,591 157,449 Taleo Corp. Class A*......... 5,060 131,459 Tyler Technologies, Inc.*.... 5,800 98,832 Websense, Inc.*.............. 4,630 105,425 ----------- TOTAL SOFTWARE 2,406,961 ----------- SPECIALTY RETAIL 5.4% Big 5 Sporting Goods Corp. .. 7,261 123,074 Buckle, Inc.(The)............ 3,340 120,841 Gymboree Corp.*.............. 3,200 157,216 Hibbett Sports, Inc.*........ 3,260 89,650 Jos. A. Bank Clothiers, Inc.*..................... 3,410 207,533 Lumber Liquidators Holdings, Inc.*..................... 10,411 317,119 Monro Muffler, Inc. ......... 2,150 77,099 Zumiez, Inc.*................ 8,401 155,922 ----------- TOTAL SPECIALTY RETAIL 1,248,454 ----------- TEXTILES, APPAREL & LUXURY GOODS 5.4% Crocs, Inc.*................. 26,372 254,753 Deckers Outdoor Corp.*....... 1,760 247,421 Iconix Brand Group, Inc.*.... 13,741 237,170 True Religion Apparel, Inc.*..................... 9,651 301,594 Volcom, Inc.*................ 8,491 202,425 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 1,243,363 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.5% NTELOS Holdings Corp. ....... 5,861 115,051 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 115,051 ----------- TOTAL COMMON STOCKS (Cost $19,593,302) 23,049,440 ----------- SHORT TERM INVESTMENTS 0.0%(A) SSgA Government Money Market Fund...................... 5,523 5,523 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $5,523) 5,523 ----------- TOTAL INVESTMENTS 99.9%(B) (Cost $19,598,825) 23,054,963 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 24,427 ----------- NET ASSETS--100.0% $23,079,390 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. (b) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% AUTO COMPONENTS 2.4% Goodyear Tire & Rubber Co.(The)*................. 36,318 $487,751 Johnson Controls, Inc. ...... 14,812 497,535 ----------- TOTAL AUTO COMPONENTS 985,286 ----------- AUTOMOBILES 2.5% Ford Motor Co.*.............. 34,988 455,544 Harley-Davidson, Inc. ....... 16,714 565,434 ----------- TOTAL AUTOMOBILES 1,020,978 ----------- DISTRIBUTORS 1.2% Genuine Parts Co. ........... 11,324 484,667 ----------- TOTAL DISTRIBUTORS 484,667 ----------- DIVERSIFIED CONSUMER SERVICES 3.3% Apollo Group, Inc. -- Class A*........................ 7,342 421,504 DeVry, Inc. ................. 7,038 439,101 H&R Block, Inc. ............. 27,938 511,545 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 1,372,150 ----------- HOTELS, RESTAURANTS & LEISURE 13.1% Carnival Corp. .............. 12,560 523,752 Darden Restaurants, Inc. .... 10,808 483,658 International Game Technology................ 27,702 583,958 Marriott International, Inc. -- Class A........... 16,250 597,350 McDonald's Corp. ............ 7,126 503,024 Starbucks Corp. ............. 18,918 491,490 Starwood Hotels & Resorts Worldwide, Inc. .......... 11,056 602,663 Wyndham Worldwide Corp. ..... 19,702 528,211 Wynn Resorts Ltd. ........... 6,552 578,148 Yum! Brands, Inc. ........... 12,400 526,008 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 5,418,262 ----------- HOUSEHOLD DURABLES 11.5% D.R. Horton, Inc. ........... 37,370 548,965 Fortune Brands, Inc. ........ 9,556 500,926 Harman International Industries, Inc.*......... 10,750 424,410 Leggett & Platt, Inc. ....... 21,994 539,513 Lennar Corp. -- Class A...... 28,914 575,389 Newell Rubbermaid, Inc. ..... 30,678 523,673 Pulte Homes, Inc.*........... 41,596 544,492 Stanley Black & Decker, Inc. ..................... 8,096 503,166 Whirlpool Corp. ............. 5,466 595,083 ----------- TOTAL HOUSEHOLD DURABLES 4,755,617 ----------- INTERNET & CATALOG RETAIL 3.7% Amazon.com, Inc.*............ 3,620 496,157 Expedia, Inc. ............... 20,800 491,088 Priceline.com, Inc.*......... 1,968 515,715 ----------- TOTAL INTERNET & CATALOG RETAIL 1,502,960 ----------- LEISURE EQUIPMENT & PRODUCTS 3.5% Eastman Kodak Co.*........... 80,216 490,922 Hasbro, Inc. ................ 12,402 475,741 Mattel, Inc. ................ 20,292 467,730 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 1,434,393 ----------- MEDIA 21.0% CBS Corp. -- Class B......... 33,534 543,586 Comcast Corp. -- Class A..... 27,064 534,243 DIRECTV -- Class A*.......... 14,264 516,785 Discovery Communications, Inc. -- Class A*.......... 14,548 563,008 Gannett Co., Inc. ........... 28,864 491,265 Interpublic Group of Cos., Inc.*..................... 54,650 486,931 McGraw-Hill Cos., Inc. ...... 13,158 443,688 Meredith Corp. .............. 13,738 493,606 New York Times Co. -- Class A*.................. 42,466 421,263 News Corp. -- Class A........ 33,640 518,729 Omnicom Group, Inc. ......... 12,072 514,991 Scripps Networks Interactive -- Class A.... 11,464 519,778 Time Warner Cable, Inc. ..... 9,718 546,637 Time Warner, Inc. ........... 15,140 500,831 Viacom, Inc. -- Class B*..... 14,920 527,124 Walt Disney Co.(The)......... 14,046 517,455 Washington Post Co. -- Class B................... 1,050 532,518 ----------- TOTAL MEDIA 8,672,438 ----------- MULTILINE RETAIL 9.6% Big Lots, Inc.*.............. 12,894 492,551 Family Dollar Stores, Inc. .. 13,166 520,847 J.C. Penney Co., Inc. ....... 14,990 437,258 Kohl's Corp.*................ 8,548 470,055 Macy's, Inc. ................ 22,468 521,258 Nordstrom, Inc. ............. 11,618 480,172 Sears Holdings Corp.*........ 4,570 552,741 Target Corp. ................ 8,852 503,413 ----------- TOTAL MULTILINE RETAIL 3,978,295 ----------- SPECIALTY RETAIL 23.1% Abercrombie & Fitch Co. -- Class A............ 10,712 468,436 AutoNation, Inc.*............ 25,686 518,857 AutoZone, Inc.*.............. 2,738 506,557 Bed Bath & Beyond, Inc.*..... 10,792 496,000 Best Buy Co., Inc. .......... 11,452 522,211 GameStop Corp. -- Class A*... 22,254 540,995 Gap, Inc.(The)............... 20,350 503,256 Home Depot, Inc. ............ 14,546 512,747 Limited Brands, Inc. ........ 19,174 513,863 Lowe's Cos., Inc. ........... 18,964 514,304 O'Reilly Automotive, Inc.*... 11,202 547,666 Office Depot, Inc.*.......... 59,862 410,653 RadioShack Corp. ............ 21,678 467,161 Ross Stores, Inc. ........... 8,788 492,128 Sherwin-Williams Co.(The).... 7,220 563,665 Staples, Inc. ............... 19,754 464,812 Tiffany & Co. ............... 10,022 485,867 TJX Cos., Inc. .............. 10,966 508,164 Urban Outfitters, Inc.*...... 13,246 496,857 ----------- TOTAL SPECIALTY RETAIL 9,534,199 ----------- TEXTILES, APPAREL & LUXURY GOODS 4.9% Coach, Inc. ................. 12,462 520,289 NIKE, Inc. -- Class B........ 6,406 486,279 Polo Ralph Lauren Corp. ..... 5,700 512,430 V.F. Corp. .................. 5,914 511,088 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 2,030,086 ----------- TOTAL COMMON STOCKS (Cost $33,319,519) 41,189,331 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund...................... 35,092 35,092 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $35,092) 35,092 ----------- TOTAL INVESTMENTS 99.9%(A) (Cost $33,354,611) 41,224,423 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 37,780 ----------- NET ASSETS--100.0% $41,262,203 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. 36 RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.6% BEVERAGES 17.0% Brown-Forman Corp. -- Class B................... 4,530 $263,555 Coca-Cola Co.(The)........... 4,730 252,819 Coca-Cola Enterprises, Inc. ..................... 9,690 268,704 Constellation Brands, Inc. -- Class A*.......... 16,161 295,261 Dr Pepper Snapple Group, Inc. ..................... 7,190 235,329 Molson Coors Brewing Co. -- Class B............ 6,000 266,160 PepsiCo, Inc. ............... 3,910 255,010 ----------- TOTAL BEVERAGES 1,836,838 ----------- FOOD & STAPLES RETAILING 21.9% Costco Wholesale Corp. ...... 4,260 251,681 CVS Caremark Corp. .......... 7,560 279,191 Kroger Co.(The).............. 11,940 265,426 Safeway, Inc. ............... 10,770 254,172 SUPERVALU, Inc. ............. 15,571 232,008 Sysco Corp. ................. 9,030 284,806 Wal-Mart Stores, Inc. ....... 4,690 251,618 Walgreen Co. ................ 7,540 265,031 Whole Foods Market, Inc.*.... 7,280 284,066 ----------- TOTAL FOOD & STAPLES RETAILING 2,367,999 ----------- FOOD PRODUCTS 34.1% Archer-Daniels-Midland Co. .. 8,980 250,901 Campbell Soup Co. ........... 7,370 264,288 ConAgra Foods, Inc. ......... 10,060 246,168 Dean Foods Co.*.............. 16,621 260,950 General Mills, Inc. ......... 3,540 251,977 H.J. Heinz Co. .............. 5,480 256,848 Hershey Co.(The)............. 6,110 287,231 Hormel Foods Corp. .......... 6,280 255,973 J.M. Smucker Co.(The)........ 4,340 265,044 Kellogg Co. ................. 4,890 268,657 Kraft Foods, Inc. -- Class A................... 8,750 259,000 McCormick & Co., Inc. ....... 6,650 263,140 Sara Lee Corp. .............. 18,701 265,928 Tyson Foods, Inc. -- Class A................... 14,581 285,642 ----------- TOTAL FOOD PRODUCTS 3,681,747 ----------- HOUSEHOLD PRODUCTS 9.6% Clorox Co. .................. 4,030 260,741 Colgate-Palmolive Co. ....... 3,070 258,187 Kimberly-Clark Corp. ........ 4,250 260,355 Procter & Gamble Co. ........ 4,070 252,991 ----------- TOTAL HOUSEHOLD PRODUCTS 1,032,274 ----------- PERSONAL PRODUCTS 7.4% Avon Products, Inc. ......... 8,120 262,520 Estee Lauder Cos., Inc -- Class A............ 4,120 271,590 Mead Johnson Nutrition Co. .. 5,060 261,147 ----------- TOTAL PERSONAL PRODUCTS 795,257 ----------- TOBACCO 9.6% Altria Group, Inc. .......... 12,770 270,596 Lorillard, Inc. ............. 3,380 264,891 Philip Morris International, Inc. ..................... 4,950 242,946 Reynolds American, Inc. ..... 4,860 259,621 ----------- TOTAL TOBACCO 1,038,054 ----------- TOTAL COMMON STOCKS (Cost $9,577,843) 10,752,169 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund...................... 11,323 11,323 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $11,323) 11,323 ----------- TOTAL INVESTMENTS 99.7%(A) (Cost $9,589,166) 10,763,492 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% 36,881 ----------- NET ASSETS--100.0% $10,800,373 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 37 RYDEX S&P EQUAL WEIGHT ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.6% ENERGY EQUIPMENT & SERVICES 28.4% Baker Hughes, Inc. .......... 8,330 $414,514 Cameron International Corp.*.................... 9,520 375,659 Diamond Offshore Drilling, Inc. ..................... 4,720 373,352 FMC Technologies, Inc.*...... 6,540 442,693 Halliburton Co. ............. 12,920 395,998 Helmerich & Payne, Inc. ..... 10,460 424,885 Nabors Industries, Ltd.*..... 19,990 431,184 National-Oilwell Varco, Inc. ..................... 9,320 410,360 Rowan Cos., Inc.*............ 14,970 446,106 Schlumberger, Ltd. .......... 6,160 439,947 Smith International, Inc. ... 9,140 436,527 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 4,591,225 ----------- OIL, GAS & CONSUMABLE FUELS 71.2% Anadarko Petroleum Corp. .... 5,660 351,826 Apache Corp. ................ 3,890 395,846 Cabot Oil & Gas Corp. ....... 10,340 373,584 Chesapeake Energy Corp. ..... 16,480 392,224 Chevron Corp. ............... 5,330 434,075 ConocoPhillips............... 7,580 448,660 CONSOL Energy, Inc. ......... 8,610 384,695 Denbury Resources, Inc.*..... 25,560 489,474 Devon Energy Corp. .......... 6,140 413,406 El Paso Corp. ............... 35,470 429,187 EOG Resources, Inc. ......... 4,320 484,358 Exxon Mobil Corp. ........... 5,930 402,351 Hess Corp. .................. 6,510 413,711 Marathon Oil Corp. .......... 12,440 399,946 Massey Energy Co. ........... 7,810 286,080 Murphy Oil Corp. ............ 7,230 434,885 Noble Energy, Inc. .......... 5,390 411,796 Occidental Petroleum Corp. .. 4,810 426,455 Peabody Energy Corp. ........ 8,420 393,382 Pioneer Natural Resources Co. ...................... 7,510 481,616 Range Resources Corp. ....... 8,240 393,542 Southwestern Energy Co.*..... 9,940 394,419 Spectra Energy Corp. ........ 17,820 415,919 Sunoco, Inc. ................ 13,370 438,269 Tesoro Corp. ................ 28,920 380,298 Valero Energy Corp. ......... 19,600 407,484 Williams Cos., Inc.(The)..... 17,630 416,244 XTO Energy, Inc. ............ 8,400 399,168 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 11,492,900 ----------- TOTAL COMMON STOCKS (Cost $14,718,929) 16,084,125 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund...................... 20,760 20,760 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $20,760) 20,760 ----------- TOTAL INVESTMENTS 99.7%(A) (Cost $14,739,689) 16,104,885 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% 52,931 ----------- NET ASSETS--100.0% $16,157,816 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. 38 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% CAPITAL MARKETS 17.0% Ameriprise Financial, Inc. .................... 6,600 $305,976 Bank of New York Mellon Corp. ................... 9,480 295,113 Charles Schwab Corp.(The)... 15,480 298,609 E*TRADE Financial Corp.*.... 184,440 309,859 Federated Investors, Inc. -- Class B.......... 11,240 271,109 Franklin Resources, Inc. ... 2,630 304,133 Goldman Sachs Group, Inc.(The)................ 1,650 239,580 Invesco Ltd. ............... 13,990 321,630 Janus Capital Group, Inc. .. 20,680 291,175 Legg Mason, Inc. ........... 9,880 313,097 Morgan Stanley.............. 9,810 296,458 Northern Trust Corp. ....... 5,240 288,095 State Street Corp. ......... 6,290 273,615 T. Rowe Price Group, Inc. .. 5,310 305,378 ----------- TOTAL CAPITAL MARKETS 4,113,827 ----------- COMMERCIAL BANKS 18.9% BB&T Corp. ................. 9,120 303,149 Comerica, Inc. ............. 7,660 321,720 Fifth Third Bancorp......... 21,800 325,038 First Horizon National Corp.*................... 20,040 283,566 Huntington Bancshares, Inc. .................... 54,370 368,085 KeyCorp..................... 38,550 347,721 M&T Bank Corp. ............. 3,480 303,978 Marshall & Ilsley Corp. .... 37,550 341,705 PNC Financial Services Group, Inc. ............. 4,900 329,329 Regions Financial Corp. .... 39,170 346,263 SunTrust Banks, Inc. ....... 10,660 315,536 U.S. Bancorp................ 11,200 299,824 Wells Fargo & Co. .......... 9,610 318,187 Zions Bancorp............... 13,030 374,352 ----------- TOTAL COMMERCIAL BANKS 4,578,453 ----------- CONSUMER FINANCE 5.1% American Express Co. ....... 7,210 332,525 Capital One Financial Corp. ................... 7,250 314,723 Discover Financial Services................. 19,090 295,131 SLM Corp.*.................. 24,720 302,573 ----------- TOTAL CONSUMER FINANCE 1,244,952 ----------- DIVERSIFIED FINANCIAL SERVICES 11.1% Bank of America Corp. ...... 17,270 307,924 Citigroup, Inc.*............ 73,590 321,588 CME Group, Inc. ............ 940 308,705 IntercontinentalExchange, Inc.*.................... 2,690 313,735 JPMorgan Chase & Co. ....... 6,710 285,712 Leucadia National Corp.*.... 11,380 288,028 Moody's Corp. .............. 9,780 241,762 Nasdaq OMX Group (The)*..... 13,870 291,270 NYSE Euronext............... 9,900 323,037 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 2,681,761 ----------- INSURANCE 26.0% AFLAC, Inc. ................ 5,350 272,636 Allstate Corp. ............. 9,360 305,791 American International Group, Inc.*............. 8,520 331,428 Aon Corp. .................. 6,860 291,276 Assurant, Inc. ............. 8,780 319,855 Berkshire Hathaway, Inc. -- Class B*......... 3,550 273,350 Chubb Corp. ................ 5,690 300,830 Cincinnati Financial Corp. ................... 9,940 282,296 Genworth Financial, Inc. -- Class A*......... 18,120 299,342 Hartford Financial Services Group, Inc. ............. 10,700 305,699 Lincoln National Corp. ..... 10,080 308,347 Loews Corp. ................ 7,850 292,334 Marsh & McLennan Cos., Inc. .................... 11,840 286,765 MetLife, Inc. .............. 6,940 316,325 Principal Financial Group, Inc. .................... 10,630 310,609 Progressive Corp. .......... 16,140 324,253 Prudential Financial, Inc. .................... 5,010 318,436 Torchmark Corp. ............ 5,470 292,864 Travelers Cos., Inc.(The)... 5,510 279,577 Unum Group.................. 12,170 297,800 XL Capital, Ltd. -- Class A.................. 15,350 273,230 ----------- TOTAL INSURANCE 6,283,043 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 18.0% Apartment Investment & Management Co. -- Class A........................ 16,220 363,490 AvalonBay Communities, Inc. .................... 3,320 345,413 Boston Properties, Inc. .... 3,840 302,822 Equity Residential.......... 7,420 335,904 HCP, Inc. .................. 8,780 282,014 Health Care REIT, Inc. ..... 6,380 286,653 Host Hotels & Resorts, Inc. .................... 21,330 346,826 Kimco Realty Corp. ......... 18,790 292,936 Plum Creek Timber Co., Inc. .................... 7,580 301,684 ProLogis.................... 20,520 270,248 Public Storage, Inc. ....... 3,200 310,112 Simon Property Group, Inc. .................... 3,460 308,009 Ventas, Inc. ............... 6,170 291,409 Vornado Realty Trust........ 3,870 322,642 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 4,360,162 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 1.4% CB Richard Ellis Group, Inc. -- Class A*......... 19,560 338,779 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 338,779 ----------- THRIFTS & MORTGAGE FINANCE 2.3% Hudson City Bancorp, Inc. .. 21,000 279,300 People's United Financial, Inc. .................... 18,510 287,460 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 566,760 ----------- TOTAL COMMON STOCKS (Cost $20,611,549) 24,167,737 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund..................... 31,373 31,373 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $31,373) 31,373 ----------- TOTAL INVESTMENTS 99.9%(A) (Cost $20,642,922) 24,199,110 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 20,603 ----------- NET ASSETS--100.0% $24,219,713 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 39 RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% BIOTECHNOLOGY 10.7% Amgen, Inc.*................ 24,530 $1,407,041 Biogen Idec, Inc.*.......... 24,280 1,292,910 Celgene Corp.*.............. 22,490 1,393,255 Cephalon, Inc.*............. 20,080 1,289,136 Genzyme Corp.*.............. 24,520 1,305,445 Gilead Sciences, Inc.*...... 30,360 1,204,381 ----------- TOTAL BIOTECHNOLOGY 7,892,168 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 25.8% Baxter International, Inc. .................... 24,680 1,165,390 Becton, Dickinson & Co. .... 18,470 1,410,554 Boston Scientific Corp.*.... 204,110 1,404,277 C.R. Bard, Inc. ............ 17,410 1,506,487 CareFusion Corp.*........... 57,660 1,590,263 Dentsply International, Inc. .................... 42,710 1,564,894 Hospira, Inc.*.............. 25,630 1,378,638 Intuitive Surgical, Inc.*... 4,150 1,496,324 Medtronic, Inc. ............ 32,560 1,422,546 St Jude Medical, Inc.*...... 37,020 1,511,156 Stryker Corp. .............. 25,750 1,479,080 Varian Medical Systems, Inc.*.................... 27,270 1,537,483 Zimmer Holdings, Inc.*...... 25,590 1,558,687 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 19,025,779 ----------- HEALTH CARE PROVIDERS & SERVICES 30.3% Aetna, Inc. ................ 42,330 1,250,852 AmerisourceBergen Corp. .... 50,970 1,572,425 Cardinal Health, Inc. ...... 40,790 1,415,005 CIGNA Corp. ................ 39,350 1,261,561 Coventry Health Care, Inc.*.................... 55,230 1,311,160 DaVita, Inc.*............... 22,930 1,431,520 Express Scripts, Inc.*...... 14,470 1,448,881 Humana, Inc.*............... 29,000 1,325,880 Laboratory Corp. of America Holdings*................ 19,310 1,517,187 McKesson Corp. ............. 22,830 1,479,612 Medco Health Solutions, Inc.*.................... 22,160 1,305,667 Patterson Cos., Inc. ....... 47,270 1,512,167 Quest Diagnostics, Inc. .... 25,450 1,454,722 Tenet Healthcare Corp.*..... 254,430 1,590,187 UnitedHealth Group, Inc. ... 42,610 1,291,509 WellPoint, Inc.*............ 22,350 1,202,430 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 22,370,765 ----------- HEALTH CARE TECHNOLOGY 2.1% Cerner Corp.*............... 18,260 1,550,457 ----------- TOTAL HEALTH CARE TECHNOLOGY 1,550,457 ----------- LIFE SCIENCES TOOLS & SERVICES 10.4% Life Technologies Corp.*.... 27,160 1,485,924 Millipore Corp.*............ 13,810 1,465,932 PerkinElmer, Inc. .......... 60,890 1,525,294 Thermo Fisher Scientific, Inc.*.................... 29,160 1,611,965 Waters Corp.*............... 22,380 1,611,136 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 7,700,251 ----------- PHARMACEUTICALS 20.6% Abbott Laboratories......... 27,130 1,387,971 Allergan, Inc. ............. 22,720 1,447,037 Bristol-Myers Squibb Co. ... 55,780 1,410,676 Eli Lilly & Co. ............ 40,190 1,405,444 Forest Laboratories, Inc.*.. 46,810 1,276,041 Johnson & Johnson, Inc. .... 22,410 1,440,963 King Pharmaceuticals, Inc.*.................... 118,710 1,163,358 Merck & Co., Inc. .......... 38,170 1,337,477 Mylan, Inc.*................ 64,280 $1,416,088 Pfizer, Inc. ............... 85,760 1,433,907 Watson Pharmaceuticals, Inc.*.................... 35,890 1,536,810 ----------- TOTAL PHARMACEUTICALS 15,255,772 ----------- TOTAL COMMON STOCKS (Cost $71,888,746) 73,795,192 ----------- SHORT TERM INVESTMENTS 0.0%(A) SSgA Government Money Market Fund..................... 35,803 35,803 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $35,803) 35,803 ----------- TOTAL INVESTMENTS 99.9%(B) (Cost $71,924,549) 73,830,995 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 52,050 ----------- NET ASSETS--100.0% $73,883,045 -----------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.1% of net assets. (b) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. 40 RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% AEROSPACE & DEFENSE 20.4% Boeing Co. .................. 9,838 $712,566 General Dynamics Corp. ...... 9,276 708,316 Goodrich Corp. .............. 9,818 728,299 Honeywell International, Inc. ..................... 15,966 757,906 ITT Corp. ................... 13,314 739,859 L-3 Communications Holdings, Inc. ..................... 7,448 696,909 Lockheed Martin Corp. ....... 8,090 686,760 Northrop Grumman Corp. ...... 10,724 727,409 Precision Castparts Corp. ... 5,744 737,185 Raytheon Co. ................ 12,300 717,090 Rockwell Collins, Inc. ...... 11,140 724,100 United Technologies Corp. ... 9,558 716,372 ----------- TOTAL AEROSPACE & DEFENSE 8,652,771 ----------- AIR FREIGHT & LOGISTICS 6.9% C.H. Robinson Worldwide, Inc. ..................... 12,374 746,152 Expeditors International of Washington, Inc. ......... 18,148 739,350 FedEx Corp. ................. 7,718 694,697 United Parcel Service, Inc. -- Class B........... 10,906 754,041 ----------- TOTAL AIR FREIGHT & LOGISTICS 2,934,240 ----------- AIRLINES 1.7% Southwest Airlines Co. ...... 54,640 720,155 ----------- TOTAL AIRLINES 720,155 ----------- BUILDING PRODUCTS 1.8% Masco Corp. ................. 46,400 753,072 ----------- TOTAL BUILDING PRODUCTS 753,072 ----------- COMMERCIAL SERVICES & SUPPLIES 13.7% Avery Dennison Corp. ........ 20,092 784,191 Cintas Corp. ................ 24,966 680,323 Iron Mountain, Inc. ......... 26,906 676,686 Pitney Bowes, Inc. .......... 28,662 728,015 R.R. Donnelley & Sons Co. ... 34,286 736,806 Republic Services, Inc. ..... 24,560 762,097 Stericycle, Inc.*............ 12,602 742,258 Waste Management, Inc. ...... 20,492 710,662 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 5,821,038 ----------- CONSTRUCTION & ENGINEERING 5.5% Fluor Corp. ................. 15,502 819,126 Jacobs Engineering Group, Inc.*..................... 16,262 784,154 Quanta Services, Inc.*....... 36,074 726,169 ----------- TOTAL CONSTRUCTION & ENGINEERING 2,329,449 ----------- ELECTRICAL EQUIPMENT 7.4% Emerson Electric Co. ........ 14,418 753,052 First Solar, Inc.*........... 6,194 889,149 Rockwell Automation, Inc. ... 12,670 769,323 Roper Industries, Inc. ...... 12,220 745,664 ----------- TOTAL ELECTRICAL EQUIPMENT 3,157,188 ----------- INDUSTRIAL CONGLOMERATES 5.2% 3M Co. ...................... 8,538 757,065 General Electric Co. ........ 38,828 732,296 Textron, Inc. ............... 31,342 715,851 ----------- TOTAL INDUSTRIAL CONGLOMERATES 2,205,212 ----------- MACHINERY 21.7% Caterpillar, Inc. ........... 11,830 805,505 Cummins, Inc. ............... 12,014 867,771 Danaher Corp. ............... 9,096 766,611 Deere & Co. ................. 11,844 708,508 Dover Corp. ................. 15,036 785,180 Eaton Corp. ................. 9,426 727,310 Flowserve Corp. ............. 6,684 765,853 Illinois Tool Works, Inc. ... 14,982 765,580 PACCAR, Inc. ................ 16,636 773,907 Pall Corp. .................. 18,132 706,967 Parker-Hannifin Corp. ....... 10,741 743,062 Snap-on, Inc. ............... 16,342 787,357 ----------- TOTAL MACHINERY 9,203,611 ----------- PROFESSIONAL SERVICES 4.7% Dun & Bradstreet Corp. ...... 9,446 727,059 Equifax, Inc. ............... 19,766 664,137 Robert Half International, Inc. ..................... 22,484 615,612 ----------- TOTAL PROFESSIONAL SERVICES 2,006,808 ----------- ROAD & RAIL 7.2% CSX Corp. ................... 13,636 764,298 Norfolk Southern Corp. ...... 12,660 751,118 Ryder System, Inc. .......... 18,176 845,547 Union Pacific Corp. ......... 9,568 723,915 ----------- TOTAL ROAD & RAIL 3,084,878 ----------- TRADING COMPANIES & DISTRIBUTORS 3.6% Fastenal Co. ................ 14,948 817,506 W.W. Grainger, Inc. ......... 6,528 721,605 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 1,539,111 ----------- TOTAL COMMON STOCKS (Cost $34,791,591) 42,407,533 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund...................... 25,569 25,569 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $25,569) 25,569 ----------- TOTAL INVESTMENTS 99.9%(A) (Cost $34,817,160) 42,433,102 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 25,621 ----------- NET ASSETS--100.0% $42,458,723 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 41 RYDEX S&P EQUAL WEIGHT MATERIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.7% CHEMICALS 42.5% Air Products & Chemicals, Inc. ..................... 16,506 $1,267,331 Airgas, Inc. ................ 19,280 1,223,316 CF Industries Holdings, Inc. ..................... 13,515 1,130,800 Dow Chemical Co.(The)........ 41,864 1,290,667 Du Pont (E.I.) de Nemours & Co. ...................... 33,718 1,343,325 Eastman Chemical Co. ........ 20,149 1,348,371 Ecolab, Inc. ................ 28,528 1,393,308 FMC Corp. ................... 20,580 1,309,711 International Flavors & Fragrances, Inc. ......... 27,430 1,373,969 Monsanto Co. ................ 17,119 1,079,524 PPG Industries, Inc. ........ 19,032 1,339,282 Praxair, Inc. ............... 15,130 1,267,440 Sigma-Aldrich Corp. ......... 22,548 1,337,096 ----------- TOTAL CHEMICALS 16,704,140 ----------- CONSTRUCTION MATERIALS 3.7% Vulcan Materials Co. ........ 25,395 1,454,626 ----------- TOTAL CONSTRUCTION MATERIALS 1,454,626 ----------- CONTAINERS & PACKAGING 15.9% Ball Corp. .................. 22,733 1,209,623 Bemis Co., Inc. ............. 42,135 1,281,325 Owens-Illinois, Inc.*........ 36,079 1,278,640 Pactiv Corp.*................ 49,680 1,262,369 Sealed Air Corp. ............ 57,158 1,228,897 ----------- TOTAL CONTAINERS & PACKAGING 6,260,854 ----------- METALS & MINING 27.5% AK Steel Holding Corp. ...... 55,641 931,987 Alcoa, Inc. ................. 86,537 1,163,057 Allegheny Technologies, Inc. ..................... 24,127 1,290,071 Cliffs Natural Resources, Inc. ..................... 19,313 1,207,642 Freeport-McMoRan Copper & Gold, Inc. ............... 15,617 1,179,552 Newmont Mining Corp. ........ 24,243 1,359,547 Nucor Corp. ................. 27,884 1,263,703 Titanium Metals Corp.*....... 83,836 1,292,751 United States Steel Corp. ... 20,832 1,138,677 ----------- TOTAL METALS & MINING 10,826,987 ----------- PAPER & FOREST PRODUCTS 10.1% International Paper Co. ..... 47,585 1,272,423 MeadWestvaco Corp. .......... 49,333 1,340,377 Weyerhaeuser Co. ............ 27,873 1,380,271 ----------- TOTAL PAPER & FOREST PRODUCTS 3,993,071 ----------- TOTAL COMMON STOCKS (Cost $31,639,341) 39,239,678 ----------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund...................... 73,237 73,237 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $73,237) 73,237 ----------- TOTAL INVESTMENTS 99.9%(A) (Cost $31,712,578) 39,312,915 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 22,142 ----------- NET ASSETS--100.0% $39,335,057 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. 42 RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% COMMUNICATIONS EQUIPMENT 9.6% Cisco Systems, Inc.*........ 44,176 $1,189,218 Harris Corp. ............... 25,172 1,295,855 JDS Uniphase Corp.*......... 105,590 1,371,614 Juniper Networks, Inc.*..... 38,595 1,096,484 Motorola, Inc.*............. 160,307 1,133,370 QUALCOMM, Inc. ............. 28,870 1,118,424 Tellabs, Inc. .............. 153,340 1,392,327 ----------- TOTAL COMMUNICATIONS EQUIPMENT 8,597,292 ----------- COMPUTERS & PERIPHERALS 15.2% Apple, Inc.*................ 5,199 1,357,563 Dell, Inc.*................. 80,524 1,302,878 EMC Corp.*.................. 62,160 1,181,662 Hewlett-Packard Co. ........ 22,055 1,146,198 International Business Machines Corp. .......... 9,085 1,171,965 Lexmark International, Inc. -- Class A*......... 33,380 1,236,729 NetApp, Inc.*............... 35,687 1,237,268 QLogic Corp.*............... 58,295 1,129,174 SanDisk Corp.*.............. 35,950 1,434,046 Teradata Corp.*............. 40,020 1,163,382 Western Digital Corp.*...... 30,291 1,244,657 ----------- TOTAL COMPUTERS & PERIPHERALS 13,605,522 ----------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 8.0% Agilent Technologies, Inc.*.................... 34,605 1,254,777 Amphenol Corp. -- Class A... 26,572 1,227,892 Corning, Inc. .............. 59,128 1,138,214 FLIR Systems, Inc.*......... 42,466 1,299,035 Jabil Circuit, Inc. ........ 66,828 1,023,805 Molex, Inc. ................ 54,978 1,232,057 ----------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 7,175,780 ----------- INTERNET SOFTWARE & SERVICES 7.9% Akamai Technologies, Inc.*.. 36,795 1,428,750 eBay, Inc.*................. 42,381 1,009,092 Google, Inc. -- Class A*.... 2,064 1,084,508 Monster Worldwide, Inc.*.... 69,031 1,203,210 VeriSign, Inc.*............. 43,224 1,178,718 Yahoo!, Inc.*............... 70,279 1,161,712 ----------- TOTAL INTERNET SOFTWARE & SERVICES 7,065,990 ----------- IT SERVICES 14.3% Automatic Data Processing, Inc. .................... 25,860 1,121,290 Cognizant Technology Solutions Corp. -- Class A*................. 22,571 1,155,184 Computer Sciences Corp.*.... 21,227 1,112,082 Fidelity National Information Services, Inc. .................... 49,107 1,291,023 Fiserv, Inc.*............... 22,774 1,163,524 Mastercard, Inc. -- Class A.................. 4,732 1,173,725 Paychex, Inc. .............. 35,989 1,101,263 SAIC, Inc.*................. 61,038 1,062,672 Total System Services, Inc. .................... 76,469 1,224,269 Visa, Inc. -- Class A....... 13,008 1,173,712 Western Union Co. .......... 69,574 1,269,725 ----------- TOTAL IT SERVICES 12,848,469 ----------- OFFICE ELECTRONICS 1.4% Xerox Corp. ................ 120,494 1,313,384 ----------- TOTAL OFFICE ELECTRONICS 1,313,384 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 23.9% Advanced Micro Devices, Inc.*.................... 126,149 1,142,910 Altera Corp. ............... 46,701 1,184,337 Analog Devices, Inc. ....... 38,762 1,160,147 Applied Materials, Inc. .... 92,418 1,273,520 Broadcom Corp. -- Class A... 34,391 1,186,146 Intel Corp. ................ 52,670 1,202,456 KLA-Tencor Corp. ........... 40,055 1,364,273 Linear Technology Corp. .... 40,808 1,226,688 LSI Corp.*.................. 179,264 1,079,169 MEMC Electronic Materials, Inc.*.................... 81,699 1,059,636 Microchip Technology, Inc. .................... 40,894 1,194,514 Micron Technology, Inc.*.... 115,549 1,080,383 National Semiconductor Corp. ................... 79,625 1,176,858 Novellus Systems, Inc.*..... 49,924 1,308,009 NVIDIA Corp.*............... 66,999 1,053,224 Teradyne, Inc.*............. 109,121 1,334,550 Texas Instruments, Inc. .... 47,387 1,232,536 Xilinx, Inc. ............... 43,545 1,122,590 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 21,381,946 ----------- SOFTWARE 19.6% Adobe Systems, Inc.*........ 33,319 1,119,185 Autodesk, Inc.*............. 39,716 1,350,741 BMC Software, Inc.*......... 29,386 1,156,633 CA, Inc. ................... 49,417 1,127,202 Citrix Systems, Inc.*....... 23,904 1,123,488 Compuware Corp.*............ 133,195 1,145,477 Electronic Arts, Inc.*...... 62,765 1,215,758 Intuit, Inc.*............... 33,466 1,210,130 McAfee, Inc.*............... 28,100 976,475 Microsoft Corp. ............ 39,175 1,196,404 Novell, Inc.*............... 203,301 1,140,519 Oracle Corp. ............... 46,109 1,191,457 Red Hat, Inc.*.............. 38,587 1,152,594 Salesforce.com, Inc.*....... 15,211 1,302,062 Symantec Corp.*............. 67,182 1,126,642 ----------- TOTAL SOFTWARE 17,534,767 ----------- TOTAL COMMON STOCKS (Cost $82,312,847) 89,523,151 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund..................... 66,738 66,738 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $66,738) 66,738 ----------- TOTAL INVESTMENTS 100.0%(A) (Cost $82,379,585) 89,589,889 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(B) (9,553) ----------- NET ASSETS--100.0% $89,580,336 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 43 RYDEX S&P EQUAL WEIGHT UTILITIES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.3% DIVERSIFIED TELECOMMUNICATION SERVICES 13.1% AT&T, Inc. .................. 9,690 $252,522 CenturyTel, Inc. ............ 7,290 248,662 Frontier Communications Corp. .................... 34,030 270,879 Qwest Communications International, Inc. ...... 50,010 261,552 Verizon Communications, Inc. ..................... 8,360 241,520 Windstream Corp. ............ 22,900 253,045 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 1,528,180 ----------- ELECTRIC UTILITIES 30.0% Allegheny Energy, Inc. ...... 10,870 236,749 American Electric Power Co., Inc. ..................... 7,350 252,105 Duke Energy Corp. ........... 15,280 256,398 Edison International......... 7,380 253,651 Entergy Corp. ............... 3,150 256,063 Exelon Corp. ................ 5,700 248,463 FirstEnergy Corp. ........... 6,420 243,125 FPL Group, Inc. ............. 5,270 274,303 Northeast Utilities.......... 9,290 258,169 Pepco Holdings, Inc. ........ 14,740 246,748 Pinnacle West Capital Corp. .................... 6,740 251,672 PPL Corp. ................... 8,930 221,107 Progress Energy, Inc. ....... 6,390 255,089 Southern Co. ................ 7,600 262,656 ----------- TOTAL ELECTRIC UTILITIES 3,516,298 ----------- GAS UTILITIES 9.2% EQT Corp. ................... 6,100 265,289 Nicor, Inc. ................. 5,870 255,404 Oneok, Inc. ................. 5,530 271,744 Questar Corp. ............... 5,970 286,261 ----------- TOTAL GAS UTILITIES 1,078,698 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 6.7% AES Corp.(The)*.............. 22,140 255,496 Constellation Energy Group, Inc. ..................... 7,020 248,157 NRG Energy, Inc.*............ 11,570 279,647 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 783,300 ----------- MULTI-UTILITIES 33.5% Ameren Corp. ................ 9,780 253,889 CenterPoint Energy, Inc. .... 17,530 251,731 CMS Energy Corp. ............ 16,110 261,949 Consolidated Edison, Inc. ... 5,750 259,900 Dominion Resources, Inc. .... 6,260 261,668 DTE Energy Co. .............. 5,650 272,160 Integrys Energy Group, Inc. ..................... 5,510 273,351 NiSource, Inc. .............. 16,210 264,223 PG&E Corp. .................. 5,890 257,982 Public Service Enterprise Group, Inc. .............. 8,230 264,430 SCANA Corp. ................. 6,710 264,844 Sempra Energy................ 5,030 247,375 TECO Energy, Inc. ........... 16,030 271,388 Wisconsin Energy Corp. ...... 5,040 264,650 Xcel Energy, Inc. ........... 11,780 256,215 ----------- TOTAL MULTI-UTILITIES 3,925,755 ----------- WIRELESS TELECOMMUNICATION SERVICES 6.8% American Tower Corp. -- Class A*.................. 5,720 233,433 MetroPCS Communications, Inc.*..................... 36,120 275,596 Sprint Nextel Corp.*......... 67,790 288,107 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 797,136 ----------- TOTAL COMMON STOCKS (Cost $11,061,700) 11,629,367 ----------- SHORT TERM INVESTMENTS 0.3% SSgA Government Money Market Fund...................... 30,523 30,523 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $30,523) 30,523 ----------- TOTAL INVESTMENTS 99.6%(A) (Cost $11,092,223) 11,659,890 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.4% 44,975 ----------- NET ASSETS--100.0% $11,704,865 -----------------------------------------------------
* Non-Income Producing Security. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. See Notes to Financial Statements. 44 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P 500 RYDEX S&P 500 MIDCAP 400 MIDCAP 400 PURE VALUE ETF PURE GROWTH ETF PURE VALUE ETF PURE GROWTH ETF -------------- --------------- -------------- --------------- ASSETS Investments at Market Value*........ $117,562,510 $89,451,361 $72,814,998 $227,716,335 Cash................................ 60,219 1,045 49,183 3,335,105 Receivables: Investments Sold.................. -- 733,551 -- 2,420,928 Fund Shares Sold.................. 5,541,401 3,824,275 -- 3,299,108 Dividends......................... 70,735 26,355 32,132 20,740 ------------ ----------- ----------- ------------ TOTAL ASSETS................... 123,234,865 94,036,587 72,896,313 236,792,216 ------------ ----------- ----------- ------------ LIABILITIES Payables: Investments Purchased............. 5,537,994 4,547,003 -- 5,790,626 Accrued Management Fees........... 28,434 24,977 19,505 62,640 ------------ ----------- ----------- ------------ TOTAL LIABILITIES.............. 5,566,428 4,571,980 19,505 5,853,266 ------------ ----------- ----------- ------------ NET ASSETS.......................... $117,668,437 $89,464,607 $72,876,808 $230,938,950 ============ =========== =========== ============ NET ASSETS CONSIST OF: Paid-in Capital..................... $116,247,008 $86,301,809 $68,643,506 $211,376,703 Undistributed (Distributions in Excess) of Net Investment Income.. 37,948 1,496 32,636 (14,649) Accumulated Net Realized Loss on Investment Securities............. (9,201,115) (7,998,590) (4,017,709) (2,919,440) Net Unrealized Appreciation on Investment Securities............. 10,584,596 11,159,892 8,218,375 22,496,336 ------------ ----------- ----------- ------------ NET ASSETS.......................... $117,668,437 $89,464,607 $72,876,808 $230,938,950 ============ =========== =========== ============ Shares Outstanding (Unlimited Shares Authorized), No Par Value......... 4,252,836 2,400,299 2,200,499 3,500,021 ============ =========== =========== ============ Net Asset Value, Offering Price and Repurchase Price Per Share........ $ 27.67 $ 37.27 $ 33.12 $ 65.98 ============ =========== =========== ============ *Total Cost of Investments.......... $106,977,914 $78,291,469 $64,596,623 $205,219,999 ============ =========== =========== ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 45 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL RYDEX S&P EQUAL SMALLCAP 600 SMALLCAP 600 WEIGHT CONSUMER WEIGHT CONSUMER PURE VALUE ETF PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF -------------- --------------- ----------------- --------------- ASSETS Investments at Market Value*...... $199,187,296 $23,054,963 $41,224,423 $10,763,492 Cash.............................. 82,943 22,662 37,389 27,998 Receivables: Investments Sold................ -- 259,183 -- -- Fund Shares Sold................ 1,974,488 -- -- -- Dividends....................... 204,494 4,243 16,477 13,357 ------------ ----------- ----------- ----------- TOTAL ASSETS................. 201,449,221 23,341,051 41,278,289 10,804,847 ------------ ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased........... 1,972,251 255,543 -- -- Accrued Management Fees......... 52,080 6,118 16,086 4,474 ------------ ----------- ----------- ----------- TOTAL LIABILITIES............ 2,024,331 261,661 16,086 4,474 ------------ ----------- ----------- ----------- NET ASSETS........................ $199,424,890 $23,079,390 $41,262,203 $10,800,373 ============ =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital................... $196,015,806 $21,850,139 $37,004,102 $ 9,999,408 Undistributed (Distributions in Excess) of Net Investment Income.......................... 194,779 (382) 19,263 20,894 Accumulated Net Realized Loss on Investment Securities........... (22,438,869) (2,226,505) (3,630,974) (394,255) Net Unrealized Appreciation on Investment Securities........... 25,653,174 3,456,138 7,869,812 1,174,326 ------------ ----------- ----------- ----------- NET ASSETS........................ $199,424,890 $23,079,390 $41,262,203 $10,800,373 ============ =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value........................... 5,050,040 550,004 950,000 200,000 ============ =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share.. $ 39.49 $ 41.96 $ 43.43 $ 54.00 ============ =========== =========== =========== *Total Cost of Investments........ $173,534,122 $19,598,825 $33,354,611 $ 9,589,166 ============ =========== =========== ===========
See Notes to Financial Statements. 46 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL RYDEX S&P EQUAL EQUAL WEIGHT EQUAL WEIGHT WEIGHT HEALTH WEIGHT ENERGY ETF FINANCIALS ETF CARE ETF INDUSTRIALS ETF ------------ -------------- ------------- --------------- ASSETS Investments at Market Value*........... $16,104,885 $24,199,110 $73,830,995 $42,433,102 Cash................................... 1,609 15,120 23,394 18,901 Receivables: Investments Sold..................... 736,566 -- 1,618,386 -- Dividends............................ 7,485 15,463 41,105 22,924 ----------- ----------- ----------- ----------- TOTAL ASSETS...................... 16,850,545 24,229,693 75,513,880 42,474,927 ----------- ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased................ 686,069 -- 1,597,474 -- Accrued Management Fees.............. 6,660 9,980 33,361 16,204 ----------- ----------- ----------- ----------- TOTAL LIABILITIES................. 692,729 9,980 1,630,835 16,204 ----------- ----------- ----------- ----------- NET ASSETS............................. $16,157,816 $24,219,713 $73,883,045 $42,458,723 =========== =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital........................ $17,300,227 $26,972,631 $77,093,295 $36,107,561 Undistributed (Distributions in Excess) of Net Investment Income............. 1,254 (16,050) 24,158 14,896 Accumulated Net Realized Loss on Investment Securities................ (2,508,861) (6,293,056) (5,140,854) (1,279,676) Net Unrealized Appreciation on Investment Securities................ 1,365,196 3,556,188 1,906,446 7,615,942 ----------- ----------- ----------- ----------- NET ASSETS............................. $16,157,816 $24,219,713 $73,883,045 $42,458,723 =========== =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value............ 300,005 900,000 1,250,000 850,000 =========== =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share........... $ 53.86 $ 26.91 $ 59.11 $ 49.95 =========== =========== =========== =========== *Total Cost of Investments............. $14,739,689 $20,642,922 $71,924,549 $34,817,160 =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 47 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
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*..................... $39,312,915 $89,589,889 $11,659,890 Cash............................................. 17,752 4,911 21,862 Receivables: Investments Sold............................... 2,862,711 -- -- Dividends...................................... 23,425 19,289 27,890 ----------- ----------- ----------- TOTAL ASSETS................................ 42,216,803 89,614,089 11,709,642 ----------- ----------- ----------- LIABILITIES Payables: Fund Shares Repurchased........................ 2,864,117 -- -- Accrued Management Fees........................ 17,629 33,753 4,777 ----------- ----------- ----------- TOTAL LIABILITIES........................... 2,881,746 33,753 4,777 ----------- ----------- ----------- NET ASSETS....................................... $39,335,057 $89,580,336 $11,704,865 =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.................................. $33,019,490 $86,167,393 $12,293,887 Undistributed (Distributions in Excess) of Net Investment Income.............................. 20,087 (15,540) 34,710 Accumulated Net Realized Loss on Investment Securities..................................... (1,304,857) (3,781,821) (1,191,399) Net Unrealized Appreciation on Investment Securities..................................... 7,600,337 7,210,304 567,667 ----------- ----------- ----------- NET ASSETS....................................... $39,335,057 $89,580,336 $11,704,865 =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value................................... 700,000 1,850,000 250,000 =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................................ $ 56.19 $ 48.42 $ 46.82 =========== =========== =========== *Total Cost of Investments....................... $31,712,578 $82,379,585 $11,092,223 =========== =========== ===========
See Notes to Financial Statements. 48 STATEMENT OF OPERATIONS (Unaudited) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P 500 RYDEX S&P 500 MIDCAP 400 PURE MIDCAP 400 PURE PURE VALUE ETF PURE GROWTH ETF VALUE ETF GROWTH ETF -------------- --------------- --------------- --------------- INVESTMENT INCOME Dividends........................ $ 521,180 $ 245,216 $ 328,340 $ 288,450 ----------- ----------- ----------- ----------- EXPENSES Management Fee................... 99,859 114,080 69,777 229,384 ----------- ----------- ----------- ----------- Net Investment Income.............. 421,321 131,136 258,563 59,066 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net Realized Gain From: Investments...................... 3,733,937 96,964 3,274,156 1,657,094 In-kind Redemptions.............. 1,615,394 590,038 684,214 5,995,974 ----------- ----------- ----------- ----------- Net Realized Gain............. 5,349,331 687,002 3,958,370 7,653,068 Net Change in Unrealized Appreciation on: Investment Securities............ 9,253,307 10,133,397 7,017,532 19,676,120 ----------- ----------- ----------- ----------- Net Realized and Unrealized Gain on Investments...................... 14,602,638 10,820,399 10,975,902 27,329,188 ----------- ----------- ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS... $15,023,959 $10,951,535 $11,234,465 $27,388,254 =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 49 STATEMENT OF OPERATIONS (Unaudited) (continued) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL RYDEX S&P EQUAL SMALLCAP 600 SMALLCAP 600 WEIGHT CONSUMER WEIGHT CONSUMER PURE VALUE ETF PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF -------------- --------------- ----------------- --------------- INVESTMENT INCOME Dividends....................... $ 610,631 $ 47,669 $ 164,921 $ 135,147 ----------- ---------- ---------- ---------- EXPENSES Management Fee.................. 190,230 27,689 55,714 25,365 Other Fees...................... -- 151 -- -- ----------- ---------- ---------- ---------- Total Expenses............... 190,230 27,840 55,714 25,365 ----------- ---------- ---------- ---------- Net Investment Income............. 420,401 19,829 109,207 109,782 ----------- ---------- ---------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments..................... (7,450,028) (292,987) (93,734) 58,403 In-kind Redemptions............. 6,188,815 -- -- -- ----------- ---------- ---------- ---------- Net Realized Gain (Loss)..... (1,261,213) (292,987) (93,734) 58,403 Net Change in Unrealized Appreciation on: Investment Securities........... 35,923,255 3,949,107 6,543,124 1,056,152 ----------- ---------- ---------- ---------- Net Realized and Unrealized Gain on Investments.................. 34,662,042 3,656,120 6,449,390 1,114,555 ----------- ---------- ---------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.. $35,082,443 $3,675,949 $6,558,597 $1,224,337 =========== ========== ========== ==========
See Notes to Financial Statements. 50 STATEMENT OF OPERATIONS (Unaudited) (continued) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT WEIGHT HEALTH EQUAL WEIGHT ENERGY ETF FINANCIALS ETF CARE ETF INDUSTRIALS ETF ------------ -------------- --------------- --------------- INVESTMENT INCOME Dividends........................... $ 117,338 $ 159,240 $ 315,161 $ 213,980 ---------- ---------- ----------- ---------- EXPENSES Management Fee...................... 41,874 39,920 194,397 59,417 ---------- ---------- ----------- ---------- Net Investment Income................. 75,464 119,320 120,764 154,563 ---------- ---------- ----------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments......................... (439,589) (288,588) (175,879) 86,627 In-kind Redemptions................. 876,722 1,401,475 9,235,847 -- ---------- ---------- ----------- ---------- Net Realized Gain................ 437,133 1,112,887 9,059,968 86,627 Net Change in Unrealized Appreciation on: Investment Securities............... 1,432,112 2,633,700 3,464,021 5,561,997 ---------- ---------- ----------- ---------- Net Realized and Unrealized Gain on Investments......................... 1,869,245 3,746,587 12,523,989 5,648,624 ---------- ---------- ----------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $1,944,709 $3,865,907 $12,644,753 $5,803,187 ========== ========== =========== ==========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 51 STATEMENT OF OPERATIONS (Unaudited) (concluded) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT MATERIALS ETF TECHNOLOGY ETF UTILITIES ETF ------------- -------------- ------------- INVESTMENT INCOME Dividends...................................... $ 305,947 $ 270,922 $ 244,067 ---------- ----------- ---------- EXPENSES Management Fee................................. 94,725 188,710 26,639 ---------- ----------- ---------- Net Investment Income............................ 211,222 82,212 217,428 ---------- ----------- ---------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.................................... 631,045 173,906 (228,935) In-kind Redemptions............................ 3,219,588 7,447,736 -- ---------- ----------- ---------- Net Realized Gain (Loss).................... 3,850,633 7,621,642 (228,935) Net Change in Unrealized Appreciation on: Investment Securities.......................... 4,262,659 5,915,007 1,142,450 ---------- ----------- ---------- Net Realized and Unrealized Gain on Investments.. 8,113,292 13,536,649 913,515 ---------- ----------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................ $8,324,514 $13,618,861 $1,130,943 ========== =========== ==========
See Notes to Financial Statements. 52 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, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 421,321 $ 479,519 $ 131,136 $ 200,784 Net Realized Gain (Loss)......... 5,349,331 (10,405,959) 687,002 (7,113,217) Net Change in Unrealized Appreciation on Investments... 9,253,307 13,980,811 10,133,397 15,522,201 ------------ ------------ ----------- ----------- Net Increase in Net Assets Resulting From Operations..... 15,023,959 4,054,371 10,951,535 8,609,768 ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (383,373) (515,568) (135,126) (214,179) ------------ ------------ ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 80,488,002 11,067,164 41,975,230 8,335,525 Value of Shares Purchased through Dividend Reinvestments........ 6,581 24,282 1,529 3,946 Value of Shares Redeemed......... (7,567,937) (2,522,624) (1,896,075) (2,565,332) ------------ ------------ ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions.................. 72,926,646 8,568,822 40,080,684 5,774,139 ------------ ------------ ----------- ----------- Increase in Net Assets........ 87,567,232 12,107,625 50,897,093 14,169,728 NET ASSETS--BEGINNING OF PERIOD.... 30,101,205 17,993,580 38,567,514 24,397,786 ------------ ------------ ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $117,668,437 $ 30,101,205 $89,464,607 $38,567,514 ============ ============ =========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 37,948 $ -- $ 1,496 $ 5,486 ============ ============ =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 3,150,000 550,000 1,200,000 350,000 Shares Purchased through Dividend Reinvestments................. 266 1,581 44 158 Shares Redeemed.................. (300,000) (150,000) (50,000) (100,000) Shares Outstanding, Beginning of Period........................ 1,402,570 1,000,989 1,250,255 1,000,097 ------------ ------------ ----------- ----------- Shares Outstanding, End of Period........................ 4,252,836 1,402,570 2,400,299 1,250,255 ============ ============ =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 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, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 258,563 $ 325,832 $ 59,066 $ 63,967 Net Realized Gain (Loss)......... 3,958,370 (7,117,028) 7,653,068 (4,466,151) Net Change in Unrealized Appreciation on Investments... 7,017,532 8,073,464 19,676,120 11,908,189 ----------- ----------- ------------ ------------ Net Increase in Net Assets Resulting From Operations..... 11,234,465 1,282,268 27,388,254 7,506,005 ----------- ----------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (225,927) (307,090) (89,353) (48,422) ----------- ----------- ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 40,202,300 13,278,363 123,541,124 95,440,614 Value of Shares Purchased through Dividend Reinvestments........ 2,368 4,588 122 314 Value of Shares Redeemed......... (1,333,750) (1,386,313) (28,332,707) (12,062,845) ----------- ----------- ------------ ------------ Net Increase in Net Assets Resulting From Share Transactions.................. 38,870,918 11,896,638 95,208,539 83,378,083 ----------- ----------- ------------ ------------ Increase in Net Assets........ 49,879,456 12,871,816 122,507,440 90,835,666 NET ASSETS--BEGINNING OF PERIOD.... 22,997,352 10,125,536 108,431,510 17,595,844 ----------- ----------- ------------ ------------ NET ASSETS--END OF PERIOD(1)....... $72,876,808 $22,997,352 $230,938,950 $108,431,510 =========== =========== ============ ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 32,636 $ -- $ (14,649) $ 15,638 =========== =========== ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 1,300,000 550,000 1,950,000 1,900,000 Shares Purchased through Dividend Reinvestments................. 81 250 2 8 Shares Redeemed.................. (50,000) (100,000) (500,000) (300,000) Shares Outstanding, Beginning of Period........................ 950,418 500,168 2,050,019 450,011 ----------- ----------- ------------ ------------ Shares Outstanding, End of Period........................ 2,200,499 950,418 3,500,021 2,050,019 =========== =========== ============ ============
See Notes to Financial Statements. 54 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, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 420,401 $ 601,004 $ 19,829 $ 18,381 Net Realized Gain (Loss)......... (1,261,213) 2,445,137 (292,987) (981,454) Net Change in Unrealized Appreciation (Depreciation) on Investments................... 35,923,255 (548,873) 3,949,107 2,147,377 ------------ ------------ ----------- ----------- Net Increase in Net Assets Resulting From Operations..... 35,082,443 2,497,268 3,675,949 1,184,304 ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (260,299) (480,887) (20,211) (20,833) ------------ ------------ ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 94,756,794 121,659,746 7,478,723 9,770,800 Value of Shares Purchased through Dividend Reinvestments........ -- 14 -- -- Value of Shares Redeemed......... (38,437,789) (40,919,190) -- (6,246,728) ------------ ------------ ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions.................. 56,319,005 80,740,570 7,478,723 3,524,072 ------------ ------------ ----------- ----------- Increase in Net Assets........ 91,141,149 82,756,951 11,134,461 4,687,543 NET ASSETS--BEGINNING OF PERIOD.... 108,283,741 25,526,790 11,944,929 7,257,386 ------------ ------------ ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $199,424,890 $108,283,741 $23,079,390 $11,944,929 ============ ============ =========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 194,779 $ 34,677 $ (382) $ -- ============ ============ =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 2,500,000 4,150,000 200,000 300,000 Shares Purchased through Dividend Reinvestments................. -- 1 -- -- Shares Redeemed.................. (1,250,000) (1,450,000) -- (200,000) Shares Outstanding, Beginning of Period........................ 3,800,040 1,100,039 350,004 250,004 ------------ ------------ ----------- ----------- Shares Outstanding, End of Period........................ 5,050,040 3,800,040 550,004 350,004 ============ ============ =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 55 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT CONSUMER RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF STAPLES ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 109,207 $ 133,691 $ 109,782 $ 232,510 Net Realized Gain (Loss)......... (93,734) (2,115,968) 58,403 (262,743) Net Change in Unrealized Appreciation on Investments... 6,543,124 4,599,724 1,056,152 1,526,281 ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Operations..... 6,558,597 2,617,447 1,224,337 1,496,048 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (91,201) (134,899) (108,706) (224,373) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 23,320,514 12,583,909 -- -- Value of Shares Redeemed......... -- (7,314,430) -- (1,954,772) ----------- ----------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. 23,320,514 5,269,479 -- (1,954,772) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets...................... 29,787,910 7,752,027 1,115,631 (683,097) NET ASSETS--BEGINNING OF PERIOD.... 11,474,293 3,722,266 9,684,742 10,367,839 ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $41,262,203 $11,474,293 $10,800,373 $ 9,684,742 =========== =========== =========== =========== (1) Including Undistributed of Net Investment Income................ $ 19,263 $ 1,257 $ 20,894 $ 19,818 =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 600,000 600,000 -- -- Shares Redeemed.................. -- (400,000) -- (50,000) Shares Outstanding, Beginning of Period........................ 350,000 150,000 200,000 250,000 ----------- ----------- ----------- ----------- Shares Outstanding, End of Period........................ 950,000 350,000 200,000 200,000 =========== =========== =========== ===========
See Notes to Financial Statements. 56 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT ENERGY ETF FINANCIALS ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 75,464 $ 83,961 $ 119,320 $ 217,309 Net Realized Gain (Loss)......... 437,133 (1,676,952) 1,112,887 (3,250,473) Net Change in Unrealized Appreciation on Investments... 1,432,112 3,463,565 2,633,700 3,985,344 ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Operations..... 1,944,709 1,870,574 3,865,907 952,180 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (80,561) (78,547) (135,370) (243,410) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 5,050,985 6,057,007 11,236,758 6,405,261 Value of Shares Redeemed......... (2,679,079) (1,884,823) (4,742,553) (3,824,425) ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions.................. 2,371,906 4,172,184 6,494,205 2,580,836 ----------- ----------- ----------- ----------- Increase in Net Assets........ 4,236,054 5,964,211 10,224,742 3,289,606 NET ASSETS--BEGINNING OF PERIOD.... 11,921,762 5,957,551 13,994,971 10,705,365 ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $16,157,816 $11,921,762 $24,219,713 $13,994,971 =========== =========== =========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 1,254 $ 6,351 $ (16,050) $ -- =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 100,000 150,000 450,000 350,000 Shares Redeemed.................. (50,000) (50,000) (200,000) (200,000) Shares Outstanding, Beginning of Period........................ 250,005 150,005 650,000 500,000 ----------- ----------- ----------- ----------- Shares Outstanding, End of Period........................ 300,005 250,005 900,000 650,000 =========== =========== =========== ===========
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 HEALTH CARE ETF INDUSTRIALS ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 120,764 $ 233,256 $ 154,563 $ 209,818 Net Realized Gain (Loss)......... 9,059,968 (216,300) 86,627 (1,921,389) Net Change in Unrealized Appreciation on Investments... 3,464,021 12,475,194 5,561,997 4,801,448 ------------ ------------ ----------- ----------- Net Increase in Net Assets Resulting From Operations..... 12,644,753 12,492,150 5,803,187 3,089,877 ------------ ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (122,115) (219,171) (143,243) (204,603) ------------ ------------ ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 34,144,233 52,467,908 18,908,801 10,670,318 Value of Shares Redeemed......... (46,091,889) (39,969,426) -- (2,811,423) ------------ ------------ ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (11,947,656) 12,498,482 18,908,801 7,858,895 ------------ ------------ ----------- ----------- Increase in Net Assets........ 574,982 24,771,461 24,568,745 10,744,169 NET ASSETS--BEGINNING OF PERIOD.... 73,308,063 48,536,602 17,889,978 7,145,809 ------------ ------------ ----------- ----------- NET ASSETS--END OF PERIOD(1)....... $ 73,883,045 $ 73,308,063 $42,458,723 $17,889,978 ============ ============ =========== =========== (1) Including Undistributed of Net Investment Income................ $ 24,158 $ 25,509 $ 14,896 $ 3,576 ============ ============ =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 600,000 1,150,000 400,000 350,000 Shares Redeemed.................. (800,000) (850,000) -- (100,000) Shares Outstanding, Beginning of Period........................ 1,450,000 1,150,000 450,000 200,000 ------------ ------------ ----------- ----------- Shares Outstanding, End of Period........................ 1,250,000 1,450,000 850,000 450,000 ============ ============ =========== ===========
See Notes to Financial Statements. 58 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, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 211,222 $ 268,197 $ 82,212 $ 57,660 Net Realized Gain (Loss)......... 3,850,633 (281,229) 7,621,642 (2,314,699) Net Change in Unrealized Appreciation on Investments... 4,262,659 5,501,066 5,915,007 7,831,217 ------------ ----------- ------------ ----------- Net Increase in Net Assets Resulting From Operations..... 8,324,514 5,488,034 13,618,861 5,574,178 ------------ ----------- ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (200,426) (264,238) (97,752) (68,005) ------------ ----------- ------------ ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 5,061,198 35,570,213 54,682,375 46,698,982 Value of Shares Redeemed......... (15,049,304) (4,749,941) (32,591,720) (5,731,696) ------------ ----------- ------------ ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (9,988,106) 30,820,272 22,090,655 40,967,286 ------------ ----------- ------------ ----------- Increase (Decrease) in Net Assets...................... (1,864,018) 36,044,068 35,611,764 46,473,459 NET ASSETS--BEGINNING OF PERIOD.... 41,199,075 5,155,007 53,968,572 7,495,113 ------------ ----------- ------------ ----------- NET ASSETS--END OF PERIOD(1)....... $ 39,335,057 $41,199,075 $ 89,580,336 $53,968,572 ============ =========== ============ =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 20,087 $ 9,291 $ (15,540) $ -- ============ =========== ============ =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 100,000 850,000 1,200,000 1,250,000 Shares Redeemed.................. (300,000) (100,000) (700,000) (150,000) Shares Outstanding, Beginning of Period........................ 900,000 150,000 1,350,000 250,000 ------------ ----------- ------------ ----------- Shares Outstanding, End of Period........................ 700,000 900,000 1,850,000 1,350,000 ============ =========== ============ ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 59 STATEMENTS OF CHANGES IN NET ASSETS (concluded) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF ---------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- OPERATIONS Net Investment Income................................. $ 217,428 $ 298,297 Net Realized Loss..................................... (228,935) (887,060) Net Change in Unrealized Appreciation on Investments.. 1,142,450 1,054,143 ----------- ---------- Net Increase in Net Assets Resulting From Operations.. 1,130,943 465,380 ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................. (211,521) (287,015) ----------- ---------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased........................ 2,358,481 4,130,846 ----------- ---------- Net Increase in Net Assets Resulting From Share Transactions....................................... 2,358,481 4,130,846 ----------- ---------- Increase in Net Assets............................. 3,277,903 4,309,211 NET ASSETS--BEGINNING OF PERIOD......................... 8,426,962 4,117,751 ----------- ---------- NET ASSETS--END OF PERIOD(1)............................ $11,704,865 $8,426,962 =========== ========== (1) Including Undistributed of Net Investment Income.... $ 34,710 $ 28,803 =========== ========== CHANGES IN SHARES OUTSTANDING: Shares Purchased...................................... 50,000 100,000 Shares Outstanding, Beginning of Period............... 200,000 100,000 ----------- ---------- Shares Outstanding, End of Period..................... 250,000 200,000 =========== ==========
See Notes to Financial Statements. 60 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF ----------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* ---------------- ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD................. $ 21.46 $ 17.98 $ 34.46 $ 32.66 $ 29.87 -------- ------- ------- ------- ------- Net Investment Income**..... 0.18 0.49 1.00 0.75 0.49 Net Realized and Unrealized Gain (Loss) on Investments............... 6.20 3.53 (16.44) 1.80 2.58 -------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS................ 6.38 4.02 (15.44) 2.55 3.07 -------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income....... (0.17) (0.54) (1.04) (0.75) (0.28) -------- ------- ------- ------- ------- Net Asset Value at End of Period.................... $ 27.67 $ 21.46 $ 17.98 $ 34.46 $ 32.66 ======== ======= ======= ======= ======= TOTAL RETURN***............. 29.79% 23.73% (45.76)% 7.79% 10.27% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)........... $117,668 $30,101 $17,994 $39,635 $21,232 RATIO TO AVERAGE NET ASSETS OF: Expenses.................... 0.35%**** 0.35% 0.35% 0.35% 0.35%**** Net Investment Income....... 1.48%**** 2.92% 3.63% 2.15% 2.37%**** Portfolio Turnover Rate+.... 27% 45% 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 61 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P 500 PURE GROWTH ETF ----------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* ---------------- ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD................. $ 30.85 $ 24.40 $ 39.59 $ 35.30 $ 34.42 ------- ------- ------- ------- ------- Net Investment Income**..... 0.07 0.18 0.20 0.25 0.11 Net Realized and Unrealized Gain (Loss) on Investments............... 6.42 6.46 (15.19) 4.26 0.84 ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS................ 6.49 6.64 (14.99) 4.51 0.95 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income....... (0.07) (0.19) (0.20) (0.22) (0.07) ------- ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.................... $ 37.27 $ 30.85 $ 24.40 $ 39.59 $ 35.30 ======= ======= ======= ======= ======= TOTAL RETURN***............. 21.08% 27.41% (38.00)% 12.79% 2.77% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)........... $89,465 $38,568 $24,398 $63,340 $17,649 RATIO TO AVERAGE NET ASSETS OF: Expenses.................... 0.35%**** 0.35% 0.35% 0.35% 0.35%**** Net Investment Income....... 0.40%**** 0.69% 0.57% 0.66% 0.48%**** Portfolio Turnover Rate+.... 35% 27% 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. 62 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 PURE VALUE ETF ----------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* ---------------- ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD................. $ 24.20 $ 20.24 $ 35.76 $ 33.27 $ 31.53 ------- ------- ------- ------- ------- Net Investment Income**..... 0.19 0.59 0.87 0.82 0.44 Net Realized and Unrealized Gain (Loss) on Investments............... 8.91 3.92 (15.54) 2.48 1.60 ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS................ 9.10 4.51 (14.67) 3.30 2.04 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income....... (0.18) (0.55) (0.84) (0.81) (0.30) ------- ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.................... $ 33.12 $ 24.20 $ 20.24 $ 35.76 $ 33.27 ======= ======= ======= ======= ======= TOTAL RETURN***............. 37.70% 23.32% (41.75)% 9.94% 6.48% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)........... $72,877 $22,997 $10,126 $21,458 $14,973 RATIO TO AVERAGE NET ASSETS OF: Expenses.................... 0.35%**** 0.35% 0.35% 0.35% 0.35%**** Net Investment Income....... 1.30%**** 2.90% 2.87% 2.28% 2.07%**** Portfolio Turnover Rate+.... 36% 57% 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 63 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 PURE GROWTH ETF ----------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* ---------------- ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD................. $ 52.89 $ 39.10 $ 59.75 $ 50.10 $ 52.62 -------- -------- ------- ------- ------- Net Investment Income**..... 0.03 0.09 0.02 0.33 0.02 Net Realized and Unrealized Gain (Loss) on Investments............... 13.10 13.79 (20.63) 9.73 (2.53) -------- -------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS................ 13.13 13.88 (20.61) 10.06 (2.51) -------- -------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income....... (0.04) (0.09) (0.04) (0.27) (0.01) Net Realized Gains.......... -- -- -- (0.14) -- -------- -------- ------- ------- ------- Total Distributions......... (0.04) (0.09) (0.04) (0.41) (0.01) -------- -------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.................... $ 65.98 $ 52.89 $ 39.10 $ 59.75 $ 50.10 ======== ======== ======= ======= ======= TOTAL RETURN***............. 24.84% 35.59% (34.52)% 20.17% (4.76)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)........... $230,939 $108,432 $17,596 $20,914 $22,547 RATIO TO AVERAGE NET ASSETS OF: Expenses.................... 0.35%**** 0.35% 0.35% 0.35% 0.35%**** Net Investment Income....... 0.09%**** 0.19% 0.04% 0.60% 0.07%**** Portfolio Turnover Rate+.... 48% 29% 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. 64 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 PURE VALUE ETF ----------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* ---------------- ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD................. $ 28.50 $ 23.21 $ 37.38 $ 40.13 $38.45 -------- -------- ------- ------- ------ Net Investment Income**..... 0.13 0.32 0.79 0.74 0.37 Net Realized and Unrealized Gain (Loss) on Investments............... 10.95 5.29 (14.26) (2.85) 1.62 -------- -------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS................ 11.08 5.61 (13.47) (2.11) 1.99 -------- -------- ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income....... (0.09) (0.32) (0.70) (0.62) (0.31) Capital..................... -- -- -- (0.02) -- -------- -------- ------- ------- ------ Total Distributions......... (0.09) (0.32) (0.70) (0.64) (0.31) -------- -------- ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.................... $ 39.49 $ 28.50 $ 23.21 $ 37.38 $40.13 ======== ======== ======= ======= ====== TOTAL RETURN***............. 38.95% 25.00% (36.48)% (5.38)% 5.19% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)........... $199,425 $108,284 $25,527 $22,426 $6,019 RATIO TO AVERAGE NET ASSETS OF: Expenses.................... 0.35%**** 0.35% 0.35% 0.35% 0.35%**** Net Investment Income....... 0.77%**** 1.18% 2.57% 1.78% 1.46%**** Portfolio Turnover Rate+.... 57% 43% 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 65 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF ----------------------------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* ---------------- ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD................. $ 34.13 $ 29.03 $ 44.92 $ 39.10 $39.31 ------- ------- ------- ------- ------ Net Investment Income (Loss)**.................. 0.05 0.06 0.17 -- (0.01) Net Realized and Unrealized Gain (Loss) on Investments............... 7.82 5.13 (15.87) 5.84 (0.20) ------- ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS................ 7.87 5.19 (15.70) 5.84 (0.21) ------- ------- ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income....... (0.04) (0.09) (0.19) (0.02) -- ------- ------- ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.................... $ 41.96 $ 34.13 $ 29.03 $ 44.92 $39.10 ======= ======= ======= ======= ====== TOTAL RETURN***............. 23.08% 17.93% (35.05)% 14.93% (0.55)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)........... $23,079 $11,945 $ 7,257 $11,229 $7,820 RATIO TO AVERAGE NET ASSETS OF: Expenses.................... 0.35%**** 0.35% 0.35% 0.35% 0.35%**** Net Investment Income....... 0.25%**** 0.21% 0.44% 0.00% (0.04)%**** Portfolio Turnover Rate+.... 44% 46% 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. 66 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 32.78 $ 24.82 $ 44.50 $ 44.98 ------- ------- ------- ------- Net Investment Income**............. 0.19 0.40 0.53 0.32 Net Realized and Unrealized Gain (Loss) on Investments............. 10.60 7.93 (19.59) (0.49) ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... 10.79 8.33 (19.06) (0.17) ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.14) (0.37) (0.62) (0.31) ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 43.43 $ 32.78 $ 24.82 $ 44.50 ======= ======= ======= ======= TOTAL RETURN***..................... 32.99% 34.20% (43.27)% (0.40)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $41,262 $11,474 $ 3,722 $28,928 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 0.98%**** 1.61% 1.44% 0.67%**** Portfolio Turnover Rate+............ 14% 42% 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 67 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 48.42 $41.47 $ 52.68 $48.16 ------- ------ ------- ------ Net Investment Income**............. 0.55 1.04 0.88 1.16 Net Realized and Unrealized Gain (Loss) on Investments............. 5.57 6.91 (11.22) 4.32 ------- ------ ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... 6.12 7.95 (10.34) 5.48 ------- ------ ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.54) (1.00) (0.87) (0.96) ------- ------ ------- ------ NET ASSET VALUE AT END OF PERIOD.... $ 54.00 $48.42 $ 41.47 $52.68 ======= ====== ======= ====== TOTAL RETURN***..................... 12.71% 19.60% (19.87)% 11.45% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $10,800 $9,685 $10,368 $7,902 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 2.16%**** 2.52% 1.78% 2.29%**** Portfolio Turnover Rate+............ 10% 25% 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. 68 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ENERGY ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 47.69 $ 39.72 $ 67.48 $ 48.35 ------- ------- ------- ------- Net Investment Income**............. 0.23 0.46 0.33 0.27 Net Realized and Unrealized Gain (Loss) on Investments............. 6.19 7.93 (25.94) 19.14 ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... 6.42 8.39 (25.61) 19.41 ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.25) (0.42) (0.35) (0.28) Net Realized Gains.................. -- -- (1.80) -- ------- ------- ------- ------- Total Distributions................. (0.25) (0.42) (2.15) (0.28) ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 53.86 $ 47.69 $ 39.72 $ 67.48 ======= ======= ======= ======= TOTAL RETURN***..................... 13.50% 21.39% (39.28)% 40.28% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $16,158 $11,922 $ 5,958 $10,122 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 0.90%**** 1.16% 0.50% 0.47%**** Portfolio Turnover Rate+............ 14% 33% 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 69 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT FINANCIALS ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 21.53 $ 21.41 $ 46.67 $48.57 ------- ------- ------- ------ Net Investment Income**............. 0.18 0.36 1.02 0.92 Net Realized and Unrealized Gain (Loss) on Investments............. 5.35 0.18 (25.40) (1.95) ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... 5.53 0.54 (24.38) (1.03) ------- ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.15) (0.42) (0.88) (0.87) ------- ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.... $ 26.91 $ 21.53 $ 21.41 $46.67 ======= ======= ======= ====== TOTAL RETURN***..................... 25.71% 3.15% (52.88)% (2.23)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $24,220 $13,995 $10,705 $7,000 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 1.49%**** 2.00% 3.09% 1.84%**** Portfolio Turnover Rate+............ 10% 49% 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. 70 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 50.56 $ 42.21 $ 57.94 $ 49.46 ------- ------- ------- ------- Net Investment Income**............. 0.09 0.19 0.14 0.11 Net Realized and Unrealized Gain (Loss) on Investments............. 8.56 8.35 (15.74) 8.48 ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... 8.65 8.54 (15.60) 8.59 ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.10) (0.19) (0.13) (0.11) ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 59.11 $ 50.56 $ 42.21 $ 57.94 ======= ======= ======= ======= TOTAL RETURN***..................... 17.11% 20.31% (26.98)% 17.37% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $73,883 $73,308 $48,537 $17,383 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 0.31%**** 0.42% 0.26% 0.20%**** Portfolio Turnover Rate+............ 11% 38% 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 71 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 39.76 $ 35.73 $ 59.37 $49.15 ------- ------- ------- ------ Net Investment Income**............. 0.29 0.67 0.61 0.56 Net Realized and Unrealized Gain (Loss) on Investments............. 10.19 4.12 (21.82) 10.21 ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... 10.48 4.79 (21.21) 10.77 ------- ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.29) (0.76) (0.65) (0.55) Net Realized Gains.................. -- -- (1.78) -- ------- ------- ------- ------ Total Distributions................. (0.29) (0.76) (2.43) (0.55) ------- ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.... $ 49.95 $ 39.76 $ 35.73 $59.37 ======= ======= ======= ====== TOTAL RETURN***..................... 26.45% 13.84% (37.12)% 22.00% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $42,459 $17,890 $ 7,146 $8,905 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 1.30%**** 1.88% 1.17% 1.02%**** Portfolio Turnover Rate+............ 8% 35% 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. 72 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT MATERIALS ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 45.78 $ 34.37 $ 59.42 $48.43 ------- ------- ------- ------ Net Investment Income**............. 0.29 0.60 1.40 0.85 Net Realized and Unrealized Gain (Loss) on Investments............. 10.40 11.49 (25.11) 10.74 ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... 10.69 12.09 (23.71) 11.59 ------- ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.28) (0.68) (1.34) (0.60) ------- ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.... $ 56.19 $ 45.78 $ 34.37 $59.42 ======= ======= ======= ====== TOTAL RETURN***..................... 23.39% 35.82% (40.67)% 24.02% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $39,335 $41,199 $ 5,155 $8,913 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 1.11%**** 1.41% 2.69% 1.53%**** Portfolio Turnover Rate+............ 8% 57% 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 73 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 39.98 $ 29.98 $ 55.18 $ 47.80 ------- ------- ------- ------- Net Investment Income (Loss)**...... 0.05 0.11 0.06 (0.05) Net Realized and Unrealized Gain (Loss) on Investments............. 8.45 10.03 (25.19) 7.43 ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.... 8.50 10.14 (25.13) 7.38 ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.06) (0.14) (0.07) -- ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD.... $ 48.42 $ 39.98 $ 29.98 $ 55.18 ======= ======= ======= ======= TOTAL RETURN***..................... 21.28% 33.94% (45.58)% 15.44% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $89,580 $53,969 $ 7,495 $19,312 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 0.22%**** 0.30% 0.14% (0.10)%**** Portfolio Turnover Rate+............ 14% 30% 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. 74 FINANCIAL HIGHLIGHTS (concluded) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF ----------------------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $ 42.13 $41.18 $ 62.28 $54.91 ------- ------ ------- ------ Net Investment Income**............. 0.92 1.89 1.81 1.55 Net Realized and Unrealized Gain (Loss) on Investments............. 4.72 0.88 (21.09) 7.38 ------- ------ ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... 5.64 2.77 (19.28) 8.93 ------- ------ ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.95) (1.82) (1.82) (1.56) ------- ------ ------- ------ NET ASSET VALUE AT END OF PERIOD.... $ 46.82 $42.13 $ 41.18 $62.28 ======= ====== ======= ====== TOTAL RETURN***..................... 13.42% 6.97% (31.63)% 16.41% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $11,705 $8,427 $ 4,118 $6,228 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50%**** 0.50% 0.50% 0.50%**** Net Investment Income............... 4.08%**** 4.64% 3.30% 2.59%**** Portfolio Turnover Rate+............ 10% 26% 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 75 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2010 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940 (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2010, 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 replicate as closely as possible, before fees and expenses, the daily performance 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. 76 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, an affiliated entity, 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. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer. C. 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, 2010, 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 2007 -- 2009), 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, 2010, 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, 2010 are disclosed in the Fund's Statement of Operations. SEMI-ANNUAL REPORT 77 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- At April 30, 2010, 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 APPRECIATION ------------ ------------ ------------ -------------- Rydex S&P 500 Pure Value ETF............. $106,977,914 $11,456,125 $ (871,529) $10,584,596 Rydex S&P 500 Pure Growth ETF............ 78,291,469 12,189,177 (1,029,285) 11,159,892 Rydex S&P MidCap 400 Pure Value ETF...... 64,596,623 8,716,469 (498,094) 8,218,375 Rydex S&P MidCap 400 Pure Growth ETF..... 205,219,999 25,219,329 (2,722,993) 22,496,336 Rydex S&P SmallCap 600 Pure Value ETF.... 173,534,122 27,822,536 (2,169,362) 25,653,174 Rydex S&P SmallCap 600 Pure Growth ETF... 19,598,825 3,726,150 (270,012) 3,456,138 Rydex S&P Equal Weight Consumer Discretionary ETF...................... 33,354,611 7,907,973 (38,161) 7,869,812 Rydex S&P Equal Weight Consumer Staples ETF.................................... 9,589,166 1,331,451 (157,125) 1,174,326 Rydex S&P Equal Weight Energy ETF........ 14,739,689 1,816,547 (451,351) 1,365,196 Rydex S&P Equal Weight Financials ETF.... 20,642,922 3,753,641 (197,453) 3,556,188 Rydex S&P Equal Weight Health Care ETF... 71,924,549 5,341,969 (3,435,523) 1,906,446 Rydex S&P Equal Weight Industrials ETF... 34,817,160 7,656,509 (40,567) 7,615,942 Rydex S&P Equal Weight Materials ETF..... 31,712,578 7,996,908 (396,571) 7,600,337 Rydex S&P Equal Weight Technology ETF.... 82,379,585 8,402,517 (1,192,213) 7,210,304 Rydex S&P Equal Weight Utilities ETF..... 11,092,223 1,066,735 (499,068) 567,667
E. FAIR VALUE MEASUREMENT In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. 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. The following table summarizes the inputs used to value the Funds' net assets as of April 30, 2010:
LEVEL 1 LEVEL 2 LEVEL 3 INVESTMENTS INVESTMENTS INVESTMENTS FUND IN SECURITIES IN SECURITIES IN SECURITIES TOTAL ---- ------------- ------------- ------------- ------------ ASSETS Rydex S&P 500 Pure Value ETF.............. $117,562,510 $-- $-- $117,562,510 Rydex S&P 500 Pure Growth ETF............. 89,451,361 -- -- 89,451,361 Rydex S&P MidCap 400 Pure Value ETF....... 72,814,998 -- -- 72,814,998 Rydex S&P MidCap 400 Pure Growth ETF...... 227,716,335 -- -- 227,716,335 Rydex S&P SmallCap 600 Pure Value ETF..... 199,187,296 -- -- 199,187,296 Rydex S&P SmallCap 600 Pure Growth ETF.... 23,054,963 -- -- 23,054,963 Rydex S&P Equal Weight Consumer Discretionary ETF....................... 41,224,423 -- -- 41,224,423 Rydex S&P Equal Weight Consumer Staples ETF..................................... 10,763,492 -- -- 10,763,492 Rydex S&P Equal Weight Energy ETF......... 16,104,885 -- -- 16,104,885 Rydex S&P Equal Weight Financials ETF..... 24,199,110 -- -- 24,199,110 Rydex S&P Equal Weight Health Care ETF.... 73,830,995 -- -- 73,830,995 Rydex S&P Equal Weight Industrials ETF.... 42,433,102 -- -- 42,433,102 Rydex S&P Equal Weight Materials ETF...... 39,312,915 -- -- 39,312,915 Rydex S&P Equal Weight Technology ETF..... 89,589,889 -- -- 89,589,889 Rydex S&P Equal Weight Utilities ETF...... 11,659,890 -- -- 11,659,890
For the six months ended April 30, 2010, there were no Level 3 Investments. 78 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- 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. RISK Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience the Funds expect the risk of loss to be remote. I. NEW ACCOUNTING PRONOUNCEMENTS In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented in Note 2E. The new disclosures and clarifications of existing disclosures are generally effective for the Funds' year ending October 31, 2011 and interim periods therein. Management is evaluating the impact of this update on current 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 each Fund's to conform to changes in the composition of the relevant index. For these services, Rydex Investments receives a management 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 SEMI-ANNUAL REPORT 79 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., an affiliated entity, (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, 2010, 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 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, 2010 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex S&P 500 Pure Value ETF............................... $ 80,392,982 $ 7,546,965 Rydex S&P 500 Pure Growth ETF.............................. 41,965,028 1,896,830 Rydex S&P MidCap 400 Pure Value ETF........................ 40,156,198 1,329,816 Rydex S&P MidCap 400 Pure Growth ETF....................... 120,143,715 24,984,388 Rydex S&P SmallCap 600 Pure Value ETF...................... 94,696,185 38,371,461 Rydex S&P SmallCap 600 Pure Growth ETF..................... 7,476,636 -- Rydex S&P Equal Weight Consumer Discretionary ETF.......... 23,285,247 -- Rydex S&P Equal Weight Consumer Staples ETF................ -- -- Rydex S&P Equal Weight Energy ETF.......................... 5,044,958 2,673,845 Rydex S&P Equal Weight Financials ETF...................... 11,141,990 4,722,436 Rydex S&P Equal Weight Health Care ETF..................... 34,130,921 46,063,531 Rydex S&P Equal Weight Industrials ETF..................... 18,895,464 -- Rydex S&P Equal Weight Materials ETF....................... 5,062,049 15,043,595 Rydex S&P Equal Weight Technology ETF...................... 54,681,917 32,580,914 Rydex S&P Equal Weight Utilities ETF....................... 2,362,460 --
80 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 S&P 500 Pure Value ETF................................ $15,881,347 $15,988,272 Rydex S&P 500 Pure Growth ETF............................... 22,550,893 24,818,857 Rydex S&P MidCap 400 Pure Value ETF......................... 14,625,993 14,674,048 Rydex S&P MidCap 400 Pure Growth ETF........................ 68,929,657 65,139,765 Rydex S&P SmallCap 600 Pure Value ETF....................... 64,647,252 65,738,771 Rydex S&P SmallCap 600 Pure Growth ETF...................... 8,196,162 6,991,317 Rydex S&P Equal Weight Consumer Discretionary ETF........... 3,348,633 3,161,466 Rydex S&P Equal Weight Consumer Staples ETF................. 1,052,785 1,118,023 Rydex S&P Equal Weight Energy ETF........................... 2,216,074 2,199,506 Rydex S&P Equal Weight Financials ETF....................... 1,577,817 1,672,923 Rydex S&P Equal Weight Health Care ETF...................... 8,164,599 8,447,104 Rydex S&P Equal Weight Industrials ETF...................... 2,118,165 2,116,325 Rydex S&P Equal Weight Materials ETF........................ 3,051,066 3,268,596 Rydex S&P Equal Weight Technology ETF....................... 10,366,058 10,339,432 Rydex S&P Equal Weight Utilities ETF........................ 1,133,528 1,025,123
There were no purchases or sales of U.S. government or government agency obligations for the six months ended April 30, 2010. 6. SUBSEQUENT EVENTS Management has evaluated events or transactions that may have occurred since April 30, 2010, that would merit recognition or disclosure in the financial statements. This evaluation was completed through June xx, 2010, the date the financial statements were available to be issued and there were no events or transactions to be reported. SEMI-ANNUAL REPORT 81 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, 2009 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. PENDING ACQUISITION TRANSACTION On February 16, 2010, Security Benefit Corporation ("SBC"), the parent company of PADCO Advisors, Inc., PADCO Advisors II, Inc. and Security Investors, LLC, the Funds' investment advisers, as applicable (the "Investment Advisers"), and certain of SBC's affiliates entered into agreements with an investor group (the "Investors") led by Guggenheim Partners, LLC ("Guggenheim"). Under the agreements, a special purpose vehicle owned by the Investors and managed by an affiliate of Guggenheim would receive a 100% ownership stake in SBC and consequently acquire control of the Investment Advisers and affiliates (the "Purchase Transaction"). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction should not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. While the parties expect the Purchase Transaction's closing to take place on or about the end of the second quarter, 2010, it is subject to various conditions, and may be delayed or even terminated due to unforeseen circumstances. 82 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. 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 Board (1940) Rydex Dynamic Funds - 1999 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 Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005) --------------------- J. KENNETH DALTON Rydex Series Funds - 1995 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 --------------------- 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 ------------------------------------------------------------------------------------
SEMI-ANNUAL REPORT 83 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (concluded) EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- RICHARD M. GOLDMAN* President of Rydex Series Funds, Rydex President (1961) Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005) MICHAEL P. BYRUM* Vice President of Rydex Series Funds Vice President (1970) (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007) NICK BONOS* Vice President and Treasurer of Rydex Vice President and Treasurer (1963) Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006) JOANNA M. HAIGNEY* Chief Compliance Officer of 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, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006) KEITH FLETCHER* Vice President of Rydex Series Funds, Vice President (1958) Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
84 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded) -------------------------------------------------------------------------------- EXECUTIVE OFFICERS (concluded)
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- AMY LEE* Vice President and Assistant Secretary of Vice President and Assistant Secretary Rydex Series Funds, Rydex Variable Trust, (1960) Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present) Director of Accounting of Rydex Investments (2003 to 2004) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)
* Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments. [RYDEX SGI LOGO] 9601 Blackwell Road - Suite 500 -Rockville, MD 20850 www.rydex-sgi.com - 800.820.0888 ETF2-SEMI-0410X1010 APRIL 30, 2010 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 LOGO] SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS........................ 2 A BRIEF NOTE ON THE COMPOUNDING OF RETURNS........ 3 FEES & EXPENSES................................... 4 PREMIUM AND DISCOUNT INFORMATION.................. 5 PORTFOLIO SUMMARY................................. 7 SCHEDULES OF INVESTMENTS.......................... 14 STATEMENTS OF ASSETS AND LIABILITIES.............. 57 STATEMENTS OF OPERATIONS.......................... 61 STATEMENTS OF CHANGES IN NET ASSETS............... 65 FINANCIAL HIGHLIGHTS.............................. 72 NOTES TO FINANCIAL STATEMENTS..................... 86 SUPPLEMENTAL INFORMATION.......................... 96 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS..... 97
2 LETTER TO OUR SHAREHOLDERS -------------------------------------------------------------------------------- DEAR SHAREHOLDER, With the economy now showing signs of growth, despite having shrunk 2.4% last year, economic pundits are cautiously optimistic on the U.S. economy. In prepared remarks to the Dallas Regional Chamber, Fed Chairman Ben Bernanke said, "The economy has stabilized and is growing again, although we can hardly be satisfied when one out of every 10 U.S. workers is unemployed and family finances remain under great stress." Minutes of a March 16, 2010 Federal Reserve meeting showed policy makers warned against raising rates too soon because unemployment may hobble a recovery in the world's largest economy. Separately, New York Fed President William Dudley said that the benchmark federal funds rate "needs to be exceptionally low for an extended period to contribute to easier financial conditions to support economic activity." The Fed has kept its target rate for overnight loans between banks at zero to 0.25% since December 2008. STEADY PROGRESS, BUT CERTAINTY STILL ELUSIVE The S&P 500(R) Index returned 15.66% for the six months ended April 30, 2010, while the S&P Equal Weighted Index returned 22.54%. Rydex|SGI offers 10 equal weight ETFs which provide equal exposure to relevant indices, ensuring that smaller cap names are weighted as heavily as market giants, therefore eliminating the large-cap bias of traditional capitalization-weighted index products. INCREASED DEMAND FOR ETFS In the past decade, demand for ETFs has increased as institutional investors have found ETFs well suited for participating in, or hedging against, broad movements in the stock market. Individual investors and their financial advisors also have become increasingly aware of these investment vehicles. Assets in ETFs accounted for 6% of total net assets managed by investment companies at year-end 2009, according to The Investment Company Institute(1). In a regulatory environment that emphasizes transparency and reduced risk, investment professionals are increasingly turning to exchange traded funds (ETFs) -- there were 756 ETFs (a total of $691 billion in assets) in the marketplace in the beginning of the reporting period, and 839 (a total of $805 billion in assets) at the end of the reporting period(1). 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|SGI is a proud participant in the ETF space with more than two dozen exchange traded products. Our exchange traded product asset base grew 20% in the six-month period ended April 30, 2010 -- to $6.7 billion from $5.6 billion. As one of the earlier entrants in the exchange traded product space, we are advocates on the numerous advantages ETFs offer investors. Thank you for the trust you place in us by investing with us. Sincerely, -s- Michael Byrum Michael Byrum President & Chief Investment Officer PERFORMANCE DISPLAYED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS. FUND PERFORMANCE IS SUBJECT TO DAILY MARKET VOLATILITY AND MAY BE BETTER OR WORSE SINCE THE END OF THE LAST QUARTER. FOR UP-TO-DATE FUND PERFORMANCE, CALL 800.820.0888 OR VISIT WWW.RYDEX-SGI.COM. -------- (1) Investment Company Institute 2010 Investment Company Factbook, p. 46., http://www.ici.org/pdf/2010_factbook.pdf SEMI-ANNUAL REPORT 3 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. 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, 2009 and held for the six months ended April 30, 2010. 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 10/31/09 4/30/10 10/31/09 TO 4/30/10 ------- --------- --------- ------------------- ACTUAL Rydex 2x S&P 500 ETF....................... 0.71% $1,000.00 $1,318.70 $4.08 Rydex Inverse 2x S&P 500 ETF............... 0.71% 1,000.00 723.70 3.03 Rydex 2x MidCap 400 ETF.................... 0.71% 1,000.00 1,552.80 4.49 Rydex Inverse 2x S&P MidCap 400 ETF........ 0.71% 1,000.00 606.90 2.83 Rydex 2x Russell 2000 ETF.................. 0.71% 1,000.00 1,606.30 4.59 Rydex Inverse 2x Russell 2000 ETF.......... 0.71% 1,000.00 573.30 2.77 Rydex 2x S&P Select Sector Energy ETF...... 0.71% 1,000.00 1,163.60 3.81 Rydex Inverse 2x S&P Select Sector Energy ETF..................................... 0.71% 1,000.00 779.00 3.13 Rydex 2x S&P Select Sector Financial ETF... 0.71% 1,000.00 1,303.80 4.06 Rydex Inverse 2x S&P Select Sector Financial ETF........................... 0.71% 1,000.00 690.40 2.98 Rydex 2x S&P Select Sector Health Care ETF..................................... 0.71% 1,000.00 1,216.40 3.90 Rydex Inverse 2x S&P Select Sector Health Care ETF................................ 0.71% 1,000.00 787.70 3.15 Rydex 2x S&P Select Sector Technology ETF.. 0.71% 1,000.00 1,280.40 4.01 Rydex Inverse 2x S&P Select Sector Technology ETF.......................... 0.71% 1,000.00 737.80 3.06 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex 2x S&P 500 ETF....................... 0.71% 1,000.00 1,021.27 3.56 Rydex Inverse 2x S&P 500 ETF............... 0.71% 1,000.00 1,021.27 3.56 Rydex 2x MidCap 400 ETF.................... 0.71% 1,000.00 1,021.27 3.56 Rydex Inverse 2x S&P MidCap 400 ETF........ 0.71% 1,000.00 1,021.27 3.56 Rydex 2x Russell 2000 ETF.................. 0.71% 1,000.00 1,021.27 3.56 Rydex Inverse 2x Russell 2000 ETF.......... 0.71% 1,000.00 1,021.27 3.56 Rydex 2x S&P Select Sector Energy ETF...... 0.71% 1,000.00 1,021.27 3.56 Rydex Inverse 2x S&P Select Sector Energy ETF..................................... 0.71% 1,000.00 1,021.27 3.56 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........................... 0.71% 1,000.00 1,021.27 3.56 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................................ 0.71% 1,000.00 1,021.27 3.56 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.......................... 0.71% 1,000.00 1,021.27 3.56
-------- * 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. 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 period from inception to April 30, 2010. 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 RYDEX 2X RYDEX RYDEX 2X INVERSE 2X INVERSE 2X S&P SELECT RYDEX 2X INVERSE 2X S&P S&P RYDEX 2X RUSSELL SECTOR S&P 500 S&P 500 MIDCAP 400 MIDCAP 400 RUSSELL 2000 2000 ENERGY PREMIUM/DISCOUNT RANGE ETF ETF ETF ETF ETF ETF ETF ------------------------------------------------------------------------------------------------------------------- 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 14 6 10 16 Between 1.01% and 3% 17 11 43 62 29 21 35 Between .51% and 1% 41 36 38 56 41 50 39 Between .26% and .5% 41 38 47 60 40 82 38 Between 0% and .25% 196 328 161 206 180 254 194 Between -0.01% and -0.25% 332 248 231 175 236 199 111 Between -0.26% and -0.5% 60 37 66 57 100 48 56 Between -0.51% and -1% 29 20 71 47 54 37 47 Between -1.01% and -3% 16 16 66 47 42 32 45 Between -3.01% and -8% 0 4 7 14 11 6 8 Between -8.01% and -10% 0 0 0 0 0 0 1 Less Than -10% 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------------------------- Total 739 739 739 739 739 739 590
PERCENTAGE OF TOTAL DAYS ---------------------------------------------------------------------------------------- RYDEX RYDEX RYDEX 2X RYDEX RYDEX 2X INVERSE 2X INVERSE 2X S&P SELECT RYDEX 2X INVERSE 2X S&P S&P RYDEX 2X RUSSELL SECTOR S&P 500 S&P 500 MIDCAP 400 MIDCAP 400 RUSSELL 2000 2000 ENERGY PREMIUM/DISCOUNT RANGE ETF ETF ETF ETF ETF ETF ETF ------------------------------------------------------------------------------------------------------------------- Greater Than 10% 0.00% 0.00% 0.13% 0.00% 0.00% 0.00% 0.00% Between 8.01% and 10% 0.00% 0.00% 0.00% 0.14% 0.00% 0.00% 0.00% Between 3.01% and 8% 0.95% 0.13% 1.08% 1.89% 0.81% 1.35% 2.71% Between 1.01% and 3% 2.30% 1.49% 5.82% 8.39% 3.92% 2.84% 5.93% Between .51% and 1% 5.55% 4.87% 5.14% 7.58% 5.55% 6.77% 6.61% Between .26% and .5% 5.55% 5.14% 6.36% 8.12% 5.41% 11.10% 6.44% Between 0% and .25% 26.52% 44.38% 21.79% 27.88% 24.36% 34.37% 32.88% Between -0.01% and -0.25% 44.93% 33.56% 31.26% 23.68% 31.94% 26.93% 18.81% Between -0.26% and -0.5% 8.12% 5.01% 8.93% 7.71% 13.53% 6.49% 9.49% Between -0.51% and -1% 3.92% 2.71% 9.61% 6.36% 7.31% 5.01% 7.97% Between -1.01% and -3% 2.16% 2.17% 8.93% 6.36% 5.68% 4.33% 7.63% Between -3.01% and -8% 0.00% 0.54% 0.95% 1.89% 1.49% 0.81% 1.36% Between -8.01% and -10% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.17% Less Than -10% 0.00% 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% 100.00%
6 PREMIUM AND DISCOUNT INFORMATION (Unaudited) (concluded) --------------------------------------------------------------------------------
NUMBER OF DAYS ------------------------------------------------------------------------------------------ RYDEX RYDEX RYDEX RYDEX INVERSE 2X RYDEX 2X INVERSE 2X RYDEX 2X INVERSE 2X RYDEX 2X INVERSE 2X S&P SELECT S&P SELECT S&P SELECT S&P SELECT S&P SELECT S&P SELECT S&P SELECT SECTOR SECTOR SECTOR SECTOR SECTOR SECTOR SECTOR ENERGY FINANCIAL FINANCIAL HEALTH CARE HEALTH CARE TECHNOLOGY TECHNOLOGY PREMIUM/DISCOUNT RANGE ETF ETF ETF ETF ETF ETF ETF -------------------------------------------------------------------------------------------------------------------- Greater Than 10% 1 1 0 1 5 3 0 Between 8.01% and 10% 1 1 0 1 3 1 2 Between 3.01% and 8% 10 14 10 16 29 10 27 Between 1.01% and 3% 53 48 43 43 82 47 73 Between .51% and 1% 67 36 46 39 37 37 50 Between .26% and .5% 56 36 54 26 34 35 30 Between 0% and .25% 194 196 238 180 143 172 159 Between -0.01% and -0.25% 60 120 82 65 68 77 60 Between -0.26% and -0.5% 40 56 32 37 39 57 26 Between -0.51% and -1% 40 28 35 73 48 48 61 Between -1.01% and -3% 51 40 37 85 71 58 66 Between -3.01% and -8% 16 13 13 22 29 41 36 Between -8.01% and -10% 0 0 0 1 2 1 0 Less Than -10% 1 1 0 1 0 3 0 -------------------------------------------------------------------------------------------------------------------- Total 590 590 590 590 590 590 590
PERCENTAGE OF TOTAL DAYS ------------------------------------------------------------------------------------------ RYDEX RYDEX RYDEX RYDEX INVERSE 2X RYDEX 2X INVERSE 2X RYDEX 2X INVERSE 2X RYDEX 2X INVERSE 2X S&P SELECT S&P SELECT S&P SELECT S&P SELECT S&P SELECT S&P SELECT S&P SELECT SECTOR SECTOR SECTOR SECTOR SECTOR SECTOR SECTOR ENERGY FINANCIAL FINANCIAL HEALTH CARE HEALTH CARE TECHNOLOGY TECHNOLOGY PREMIUM/DISCOUNT RANGE ETF ETF ETF ETF ETF ETF ETF -------------------------------------------------------------------------------------------------------------------- Greater Than 10% 0.17% 0.17% 0.00% 0.17% 0.85% 0.51% 0.00% Between 8.01% and 10% 0.17% 0.17% 0.00% 0.17% 0.51% 0.17% 0.34% Between 3.01% and 8% 1.69% 2.37% 1.70% 2.71% 4.91% 1.69% 4.58% Between 1.01% and 3% 8.98% 8.14% 7.29% 7.29% 13.90% 7.97% 12.37% Between .51% and 1% 11.36% 6.10% 7.80% 6.61% 6.27% 6.27% 8.47% Between .26% and .5% 9.49% 6.10% 9.15% 4.41% 5.76% 5.93% 5.08% Between 0% and .25% 32.88% 33.22% 40.34% 30.51% 24.24% 29.15% 26.95% Between -0.01% and -0.25% 10.17% 20.34% 13.90% 11.01% 11.52% 13.05% 10.17% Between -0.26% and -0.5% 6.78% 9.49% 5.42% 6.27% 6.61% 9.66% 4.41% Between -0.51% and -1% 6.78% 4.75% 5.93% 12.37% 8.14% 8.14% 10.34% Between -1.01% and -3% 8.65% 6.78% 6.27% 14.41% 12.03% 9.83% 11.19% Between -3.01% and -8% 2.71% 2.20% 2.20% 3.73% 4.92% 6.95% 6.10% Between -8.01% and -10% 0.00% 0.00% 0.00% 0.17% 0.34% 0.17% 0.00% Less Than -10% 0.17% 0.17% 0.00% 0.17% 0.00% 0.51% 0.00% -------------------------------------------------------------------------------------------------------------------- Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
SEMI-ANNUAL REPORT 7 RYDEX 2x S&P 500 ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 2.47% APPLE, INC. 1.83% MICROSOFT CORP. 1.80% GENERAL ELECTRIC CO. 1.55% PROCTER & GAMBLE CO. 1.39% BANK OF AMERICA CORP. 1.38% JOHNSON & JOHNSON, INC. 1.36% WELLS FARGO & CO. 1.32% JPMORGAN CHASE & CO. 1.30% INTERNATIONAL BUSINESS MACHINES CORP. 1.29% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 17.61 Industrials 16.81 Financials 15.36 Health Care 10.77 Energy 10.43 Consumer Staples 10.17 Consumer Discretionary 9.84 Utilities 3.25 Materials 3.22 Telecommunication Services 2.54
* 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. 8 RYDEX 2x S&P MIDCAP 400 ETF PORTFOLIO SUMMARY (Unaudited) As April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CREE, INC. 0.63% VERTEX PHARMACEUTICALS, INC. 0.63% NEWFIELD EXPLORATION CO. 0.63% NEW YORK COMMUNITY BANCORP, INC. 0.58% LUBRIZOL CORP. 0.50% JOY GLOBAL, INC. 0.48% EDWARDS LIFESCIENCES CORP. 0.47% MACERICH CO. (THE) 0.47% CIMAREX ENERGY CO. 0.46% CARMAX, INC. 0.45% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Industrials 21.34 Financials 19.20 Consumer Discretionary 13.78 Information Technology 13.42 Health Care 11.13 Materials 5.98 Energy 5.71 Utilities 5.32 Consumer Staples 3.40 Telecommunication Services 0.72
* 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 9 RYDEX 2x RUSSELL 2000 ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ HUMAN GENOME SCIENCES, INC. 0.39% UAL CORP. 0.28% TUPPERWARE BRANDS CORP. 0.25% ARES CAPITAL CORP. 0.23% DOMTAR CORP. 0.23% SKYWORKS SOLUTIONS, INC. 0.22% POLYCOM, INC. 0.21% SOLERA HOLDINGS, INC. 0.21% ASSURED GUARANTY, LTD. 0.20% E*TRADE FINANCIAL CORP. 0.20% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Industrials 24.13 Financials 19.00 Information Technology 15.53 Consumer Discretionary 13.73 Health Care 12.47 Energy 4.56 Materials 4.30 Consumer Staples 2.81 Utilities 2.68 Telecommunication Services 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 equity investments market value. These percentages may change over time. 10 RYDEX 2x S&P SELECT SECTOR ENERGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 14.61% CHEVRON CORP. 11.29% SCHLUMBERGER, LTD. 6.03% CONOCOPHILLIPS 4.40% OCCIDENTAL PETROLEUM CORP. 4.25% APACHE CORP. 2.67% ANADARKO PETROLEUM CORP. 2.41% DEVON ENERGY CORP. 2.35% EOG RESOURCES, INC. 2.33% HALLIBURTON CO. 2.25% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Oil, Gas & Consumable Fuels 79.37 Energy Equipment & Services 20.63
* 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 11 RYDEX 2x S&P SELECT SECTOR FINANCIAL ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ BANK OF AMERICA CORP. 8.53% WELLS FARGO & CO. 8.18% JPMORGAN CHASE & CO. 8.06% BERKSHIRE HATHAWAY, INC. -- CLASS B 6.07% CITIGROUP, INC. 4.09% GOLDMAN SACHS GROUP, INC. 3.64% AMERICAN EXPRESS CO. 2.63% U.S. BANCORP 2.44% MORGAN STANLEY 2.01% BANK OF NEW YORK MELLON CORP. 1.79% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Diversified Financial Services 27.48 Insurance 22.76 Commercial Banks 20.22 Capital Markets 15.67 Real Estate Investment Trusts (REITs) 7.87 Consumer Finance 5.05 Thrifts & Mortgage Finance 0.68 Real Estate Management & Development 0.27
* 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. 12 RYDEX 2x S&P SELECT SECTOR HEALTH CARE ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ JOHNSON & JOHNSON, INC. 12.36% PFIZER, INC. 9.43% MERCK & CO., INC. 7.63% ABBOTT LABORATORIES 4.70% AMGEN, INC. 3.93% MEDTRONIC, INC. 3.39% BRISTOL-MYERS SQUIBB CO. 3.04% GILEAD SCIENCES, INC. 2.50% ELI LILLY & CO. 2.48% UNITEDHEALTH GROUP, INC. 2.47% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Pharmaceuticals 49.24 Health Care Providers & Services 17.79 Health Care Equipment & Supplies 16.04 Biotechnology 12.48 Life Sciences Tools & Services 3.97 Health Care Technology 0.48
* 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 2x S&P SELECT SECTOR TECHNOLOGY ETF PORTFOLIO SUMMARY (Unaudited) As of April 30, 2010 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ APPLE, INC. 8.50% MICROSOFT CORP. 8.36% INTERNATIONAL BUSINESS MACHINES CORP. 6.00% CISCO SYSTEMS, INC. 5.53% AT&T, INC. 5.52% GOOGLE, INC. -- CLASS A 4.53% INTEL CORP. 3.86% HEWLETT-PACKARD CO. 3.64% ORACLE CORP. 3.64% VERIZON COMMUNICATIONS, INC. 2.96% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Computers & Peripherals 26.66 Software 19.29 Communication Equipment 11.52 Diversified Telecommunications Services 11.38 Semiconductors & Semiconductor Equipment 11.23 Internet Software &Services 8.06 IT Services 6.98 Electronic Equipment, Instruments & Components 2.80 Wireless Telecommunication Services 1.40 Office Electronics 0.68
* 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 equity investments market value. These percentages may change over time. 14 Rydex 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS 82.7% AEROSPACE & DEFENSE 2.5% Boeing Co. ..................................... 6,480 $469,346 General Dynamics Corp. ......................... 3,300 251,988 Goodrich Corp. ................................. 1,070 79,373 Honeywell International, Inc. .................. 6,550 310,929 ITT Corp. ...................................... 1,570 87,245 L-3 Communications Holdings, Inc. .............. 990 92,634 Lockheed Martin Corp. .......................... 2,700 229,203 Northrop Grumman Corp. ......................... 2,590 175,680 Precision Castparts Corp. ...................... 1,210 155,291 Raytheon Co. ................................... 3,250 189,475 Rockwell Collins, Inc. ......................... 1,350 87,750 United Technologies Corp. ...................... 8,020 601,099 ------------ TOTAL AEROSPACE & DEFENSE 2,730,013 ------------ AIR FREIGHT & LOGISTICS 0.9% C.H. Robinson Worldwide, Inc. .................. 1,430 86,229 Expeditors International of Washington, Inc. ... 1,820 74,147 FedEx Corp. .................................... 2,680 241,227 United Parcel Service, Inc. -- Class B.......... 8,500 587,690 ------------ TOTAL AIR FREIGHT & LOGISTICS 989,293 ------------ AIRLINES 0.1% Southwest Airlines Co. ......................... 6,370 83,957 ------------ TOTAL AIRLINES 83,957 ------------ AUTO COMPONENTS 0.2% Goodyear Tire & Rubber Co.(The)*................ 2,070 27,800 Johnson Controls, Inc. ......................... 5,750 193,143 ------------ TOTAL AUTO COMPONENTS 220,943 ------------ AUTOMOBILES 0.4% Ford Motor Co.*................................. 28,850 375,627 Harley-Davidson, Inc. .......................... 2,010 67,998 ------------ TOTAL AUTOMOBILES 443,625 ------------ BEVERAGES 2.0% Brown-Forman Corp. -- Class B................... 930 54,107 Coca-Cola Co.(The).............................. 19,740 1,055,103 Coca-Cola Enterprises, Inc. .................... 2,740 75,980 Constellation Brands, Inc. -- Class A*.......... 1,710 31,242 Dr Pepper Snapple Group, Inc. .................. 2,180 71,351 Molson Coors Brewing Co. -- Class B............. 1,360 60,330 PepsiCo, Inc. .................................. 14,000 913,080 ------------ TOTAL BEVERAGES 2,261,193 ------------ BIOTECHNOLOGY 1.2% Amgen, Inc.*.................................... 8,390 481,250 Biogen Idec, Inc.*.............................. 2,310 123,008 Celgene Corp.*.................................. 3,940 244,083 Cephalon, Inc.*................................. 640 41,088 Genzyme Corp.*.................................. 2,280 121,387 Gilead Sciences, Inc.*.......................... 7,740 307,046 ------------ TOTAL BIOTECHNOLOGY 1,317,862 ------------ BUILDING PRODUCTS 0.0%(A) Masco Corp. .................................... 3,070 49,826 ------------ TOTAL BUILDING PRODUCTS 49,826 ------------ CAPITAL MARKETS 2.1% Ameriprise Financial, Inc. ..................... 2,190 101,528 Bank of New York Mellon Corp. .................. 10,350 322,196 Charles Schwab Corp.(The)....................... 8,370 161,457 E*TRADE Financial Corp.*........................ 16,420 27,586 Federated Investors, Inc. -- Class B............ 760 18,331 Franklin Resources, Inc. ....................... 1,270 146,863 Goldman Sachs Group, Inc.(The).................. 4,510 654,852 Invesco Ltd. ................................... 3,670 84,373 Janus Capital Group, Inc. ...................... 1,570 22,106 Legg Mason, Inc. ............................... 1,390 44,049 Morgan Stanley.................................. 11,970 361,733 Northern Trust Corp. ........................... 2,070 113,809 State Street Corp. ............................. 4,240 184,440 T. Rowe Price Group, Inc. ...................... 2,220 127,672 ------------ TOTAL CAPITAL MARKETS 2,370,995 ------------ CHEMICALS 1.6% Air Products & Chemicals, Inc. ................. 1,820 139,740 Airgas, Inc. ................................... 710 45,050 CF Industries Holdings, Inc. ................... 590 49,365 Dow Chemical Co.(The)........................... 9,850 303,676 Du Pont (E.I.) de Nemours & Co. ................ 7,740 308,362 Eastman Chemical Co. ........................... 620 41,490 Ecolab, Inc. ................................... 2,020 98,657 FMC Corp. ...................................... 620 39,457 International Flavors & Fragrances, Inc. ....... 680 34,061 Monsanto Co. ................................... 4,670 294,490 PPG Industries, Inc. ........................... 1,420 99,925 Praxair, Inc. .................................. 2,620 219,477 Sigma-Aldrich Corp. ............................ 1,040 61,672 ------------ TOTAL CHEMICALS 1,735,422 ------------ COMMERCIAL BANKS 2.8% BB&T Corp. ..................................... 5,920 196,781 Comerica, Inc. ................................. 1,490 62,580 Fifth Third Bancorp............................. 6,810 101,537 First Horizon National Corp.*................... 1,930 27,310 Huntington Bancshares, Inc. .................... 6,140 41,568 KeyCorp......................................... 7,520 67,830 M&T Bank Corp. ................................. 710 62,018 Marshall & Ilsley Corp. ........................ 4,510 41,041 PNC Financial Services Group, Inc. ............. 4,430 297,740 Regions Financial Corp. ........................ 10,210 90,256 SunTrust Banks, Inc. ........................... 4,280 126,688 U.S. Bancorp.................................... 16,390 438,760 Wells Fargo & Co. .............................. 44,370 1,469,091 Zions Bancorp................................... 1,290 37,062 ------------ TOTAL COMMERCIAL BANKS 3,060,262 ------------ COMMERCIAL SERVICES & SUPPLIES 0.4% Avery Dennison Corp. ........................... 960 37,469 Cintas Corp. ................................... 1,130 30,793 Iron Mountain, Inc. ............................ 1,550 38,982 Pitney Bowes, Inc. ............................. 1,780 45,212 R.R. Donnelley & Sons Co. ...................... 1,760 37,822 Republic Services, Inc. ........................ 2,770 85,953 Stericycle, Inc.*............................... 730 42,997 Waste Management, Inc. ......................... 4,150 143,922 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 463,150 ------------ COMMUNICATIONS EQUIPMENT 2.0% Cisco Systems, Inc.*............................ 49,040 1,320,157 Harris Corp. ................................... 1,120 57,658 JDS Uniphase Corp.*............................. 1,910 24,811 Juniper Networks, Inc.*......................... 4,500 127,845 Motorola, Inc.*................................. 19,810 140,057
See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 Rydex 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) QUALCOMM, Inc. ................................. 14,390 $557,468 Tellabs, Inc. .................................. 3,290 29,873 ------------ TOTAL COMMUNICATIONS EQUIPMENT 2,257,869 ------------ COMPUTERS & PERIPHERALS 4.9% Apple, Inc.*.................................... 7,770 2,028,902 Dell, Inc.*..................................... 14,750 238,655 EMC Corp.*...................................... 17,580 334,196 Hewlett-Packard Co. ............................ 20,160 1,047,715 International Business Machines Corp. .......... 11,130 1,435,770 Lexmark International, Inc. -- Class A*......... 670 24,824 NetApp, Inc.*................................... 2,950 102,277 QLogic Corp.*................................... 980 18,983 SanDisk Corp.*.................................. 1,960 78,184 Teradata Corp.*................................. 1,430 41,570 Western Digital Corp.*.......................... 1,960 80,536 ------------ TOTAL COMPUTERS & PERIPHERALS 5,431,612 ------------ CONSTRUCTION & ENGINEERING 0.1% Fluor Corp. .................................... 1,530 80,845 Jacobs Engineering Group, Inc.*................. 1,070 51,596 Quanta Services, Inc.*.......................... 1,800 36,234 ------------ TOTAL CONSTRUCTION & ENGINEERING 168,675 ------------ CONSTRUCTION MATERIALS 0.1% Vulcan Materials Co. ........................... 1,080 61,862 ------------ TOTAL CONSTRUCTION MATERIALS 61,862 ------------ CONSUMER FINANCE 0.7% American Express Co. ........................... 10,250 472,730 Capital One Financial Corp. .................... 3,900 169,299 Discover Financial Services..................... 4,660 72,044 SLM Corp.*...................................... 4,150 50,796 ------------ TOTAL CONSUMER FINANCE 764,869 ------------ CONTAINERS & PACKAGING 0.2% Ball Corp. ..................................... 810 43,100 Bemis Co., Inc. ................................ 930 28,281 Owens-Illinois, Inc.*........................... 1,440 51,034 Pactiv Corp.*................................... 1,130 28,713 Sealed Air Corp. ............................... 1,360 29,240 ------------ TOTAL CONTAINERS & PACKAGING 180,368 ------------ DISTRIBUTORS 0.1% Genuine Parts Co. .............................. 1,360 58,208 ------------ TOTAL DISTRIBUTORS 58,208 ------------ DIVERSIFIED CONSUMER SERVICES 0.1% Apollo Group, Inc. -- Class A*.................. 1,100 63,151 DeVry, Inc. .................................... 530 33,067 H&R Block, Inc. ................................ 2,870 52,549 ------------ TOTAL DIVERSIFIED CONSUMER SERVICES 148,767 ------------ DIVERSIFIED FINANCIAL SERVICES 3.7% Bank of America Corp. .......................... 85,920 1,531,953 Citigroup, Inc.*................................ 168,280 735,384 CME Group, Inc. ................................ 570 187,194 IntercontinentalExchange, Inc.*................. 630 73,477 JPMorgan Chase & Co. ........................... 34,030 1,448,997 Leucadia National Corp.*........................ 1,630 41,255 Moody's Corp. .................................. 1,680 41,530 Nasdaq OMX Group (The)*......................... 1,270 26,670 NYSE Euronext................................... 2,240 73,091 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 4,159,551 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 2.0% AT&T, Inc. ..................................... 50,550 1,317,333 CenturyTel, Inc. ............................... 2,570 87,663 Frontier Communications Corp. .................. 2,670 21,253 Qwest Communications International, Inc. ....... 12,740 66,630 Verizon Communications, Inc. ................... 24,290 701,738 Windstream Corp. ............................... 3,910 43,206 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 2,237,823 ------------ ELECTRIC UTILITIES 1.5% Allegheny Energy, Inc. ......................... 1,450 31,581 American Electric Power Co., Inc. .............. 4,090 140,287 Duke Energy Corp. .............................. 11,210 188,104 Edison International............................ 2,790 95,892 Entergy Corp. .................................. 1,620 131,690 Exelon Corp. ................................... 5,650 246,283 FirstEnergy Corp. .............................. 2,610 98,840 FPL Group, Inc. ................................ 3,540 184,257 Northeast Utilities............................. 1,500 41,685 Pepco Holdings, Inc. ........................... 1,900 31,806 Pinnacle West Capital Corp. .................... 920 34,353 PPL Corp. ...................................... 3,230 79,975 Progress Energy, Inc. .......................... 2,440 97,405 Southern Co. ................................... 7,030 242,957 ------------ TOTAL ELECTRIC UTILITIES 1,645,115 ------------ ELECTRICAL EQUIPMENT 0.5% Emerson Electric Co. ........................... 6,440 336,361 First Solar, Inc.*.............................. 420 60,291 Rockwell Automation, Inc. ...................... 1,220 74,079 Roper Industries, Inc. ......................... 800 48,816 ------------ TOTAL ELECTRICAL EQUIPMENT 519,547 ------------ ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 0.5% Agilent Technologies, Inc.*..................... 2,990 108,417 Amphenol Corp. -- Class A....................... 1,480 68,391 Corning, Inc. .................................. 13,350 256,987 FLIR Systems, Inc.*............................. 1,310 40,073 Jabil Circuit, Inc. ............................ 1,650 25,278 Molex, Inc. .................................... 1,160 25,996 ------------ TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 525,142 ------------ ENERGY EQUIPMENT & SERVICES 1.6% Baker Hughes, Inc. ............................. 3,675 182,862 Cameron International Corp.*.................... 2,090 82,471 Diamond Offshore Drilling, Inc. ................ 600 47,460 FMC Technologies, Inc.*......................... 1,040 70,398 Halliburton Co. ................................ 7,750 237,538 Helmerich & Payne, Inc. ........................ 910 36,964 Nabors Industries, Ltd.*........................ 2,440 52,631 National-Oilwell Varco, Inc. ................... 3,580 157,627 Rowan Cos., Inc.*............................... 970 28,906 Schlumberger, Ltd. ............................. 10,250 732,055 Smith International, Inc. ...................... 2,130 101,729 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 1,730,641 ------------ FOOD & STAPLES RETAILING 2.1% Costco Wholesale Corp. ......................... 3,760 222,141 CVS Caremark Corp. ............................. 11,910 439,836
See Notes to Financial Statements. 16 Rydex 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Kroger Co.(The)................................. 5,570 $123,821 Safeway, Inc. .................................. 3,330 78,588 SUPERVALU, Inc. ................................ 1,820 27,118 Sysco Corp. .................................... 5,070 159,908 Wal-Mart Stores, Inc. .......................... 18,270 980,186 Walgreen Co. ................................... 8,440 296,666 Whole Foods Market, Inc.*....................... 1,460 56,969 ------------ TOTAL FOOD & STAPLES RETAILING 2,385,233 ------------ FOOD PRODUCTS 1.4% Archer-Daniels-Midland Co. ..................... 5,500 153,670 Campbell Soup Co. .............................. 1,620 58,093 ConAgra Foods, Inc. ............................ 3,800 92,986 Dean Foods Co.*................................. 1,550 24,335 General Mills, Inc. ............................ 2,820 200,728 H.J. Heinz Co. ................................. 2,710 127,018 Hershey Co.(The)................................ 1,430 67,224 Hormel Foods Corp. ............................. 600 24,456 J.M. Smucker Co.(The)........................... 1,020 62,291 Kellogg Co. .................................... 2,180 119,769 Kraft Foods, Inc. -- Class A.................... 14,870 440,152 McCormick & Co., Inc. .......................... 1,130 44,714 Sara Lee Corp. ................................. 5,970 84,894 Tyson Foods, Inc. -- Class A.................... 2,610 51,130 ------------ TOTAL FOOD PRODUCTS 1,551,460 ------------ GAS UTILITIES 0.2% EQT Corp. ...................................... 1,230 53,493 Nicor, Inc. .................................... 390 16,969 Oneok, Inc. .................................... 900 44,226 Questar Corp. .................................. 1,500 71,925 ------------ TOTAL GAS UTILITIES 186,613 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 1.5% Baxter International, Inc. ..................... 5,160 243,655 Becton, Dickinson & Co. ........................ 2,020 154,267 Boston Scientific Corp.*........................ 12,940 89,027 C.R. Bard, Inc. ................................ 820 70,955 CareFusion Corp.*............................... 1,520 41,922 Dentsply International, Inc. ................... 1,260 46,166 Hospira, Inc.*.................................. 1,400 75,306 Intuitive Surgical, Inc.*....................... 330 118,985 Medtronic, Inc. ................................ 9,460 413,307 St Jude Medical, Inc.*.......................... 2,790 113,888 Stryker Corp. .................................. 2,420 139,005 Varian Medical Systems, Inc.*................... 1,060 59,763 Zimmer Holdings, Inc.*.......................... 1,820 110,856 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,677,102 ------------ HEALTH CARE PROVIDERS & SERVICES 1.6% Aetna, Inc. .................................... 3,690 109,040 AmerisourceBergen Corp. ........................ 2,420 74,657 Cardinal Health, Inc. .......................... 3,100 107,539 CIGNA Corp. .................................... 2,350 75,341 Coventry Health Care, Inc.*..................... 1,270 30,150 DaVita, Inc.*................................... 880 54,938 Express Scripts, Inc.*.......................... 2,360 236,307 Humana, Inc.*................................... 1,460 66,751 Laboratory Corp. of America Holdings*........... 900 70,713 McKesson Corp. ................................. 2,310 149,711 Medco Health Solutions, Inc.*................... 3,970 233,912 Patterson Cos., Inc. ........................... 800 25,592 Quest Diagnostics, Inc. ........................ 1,290 73,736 Tenet Healthcare Corp.*......................... 3,710 23,188 UnitedHealth Group, Inc. ....................... 9,910 300,372 WellPoint, Inc.*................................ 3,800 204,440 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 1,836,387 ------------ HEALTH CARE TECHNOLOGY 0.0%(A) Cerner Corp.*................................... 580 49,248 ------------ TOTAL HEALTH CARE TECHNOLOGY 49,248 ------------ HOTELS, RESTAURANTS & LEISURE 1.4% Carnival Corp. ................................. 3,720 155,124 Darden Restaurants, Inc. ....................... 1,200 53,700 International Game Technology................... 2,540 53,543 Marriott International, Inc. -- Class A......... 2,180 80,137 McDonald's Corp. ............................... 9,220 650,840 Starbucks Corp. ................................ 6,370 165,493 Starwood Hotels & Resorts Worldwide, Inc. ...... 1,600 87,216 Wyndham Worldwide Corp. ........................ 1,530 41,019 Wynn Resorts Ltd. .............................. 590 52,062 Yum! Brands, Inc. .............................. 4,020 170,528 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 1,509,662 ------------ HOUSEHOLD DURABLES 0.4% D.R. Horton, Inc. .............................. 2,370 34,815 Fortune Brands, Inc. ........................... 1,300 68,146 Harman International Industries, Inc.*.......... 590 23,293 Leggett & Platt, Inc. .......................... 1,270 31,153 Lennar Corp. -- Class A......................... 1,390 27,661 Newell Rubbermaid, Inc. ........................ 2,380 40,627 Pulte Homes, Inc.*.............................. 2,720 35,605 Stanley Black & Decker, Inc. ................... 1,350 83,902 Whirlpool Corp. ................................ 640 69,677 ------------ TOTAL HOUSEHOLD DURABLES 414,879 ------------ HOUSEHOLD PRODUCTS 2.0% Clorox Co. ..................................... 1,200 77,640 Colgate-Palmolive Co. .......................... 4,230 355,743 Kimberly-Clark Corp. ........................... 3,570 218,698 Procter & Gamble Co. ........................... 24,880 1,546,541 ------------ TOTAL HOUSEHOLD PRODUCTS 2,198,622 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2% AES Corp.(The)*................................. 5,730 66,124 Constellation Energy Group, Inc. ............... 1,720 60,802 NRG Energy, Inc.*............................... 2,240 54,141 ------------ TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 181,067 ------------ INDUSTRIAL CONGLOMERATES 2.1% 3M Co. ......................................... 6,100 540,887 General Electric Co. ........................... 91,380 1,723,427 Textron, Inc. .................................. 2,330 53,217 ------------ TOTAL INDUSTRIAL CONGLOMERATES 2,317,531 ------------ INSURANCE 3.1% AFLAC, Inc. .................................... 4,020 204,859 Allstate Corp. ................................. 4,600 150,282 American International Group, Inc.*............. 1,160 45,124 Aon Corp. ...................................... 2,290 97,233 Assurant, Inc. ................................. 1,000 36,430 Berkshire Hathaway, Inc. -- Class B*............ 14,170 1,091,090
See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 Rydex 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Chubb Corp. .................................... 2,810 $148,565 Cincinnati Financial Corp. ..................... 1,400 39,760 Genworth Financial, Inc. -- Class A*............ 4,190 69,219 Hartford Financial Services Group, Inc. ........ 3,800 108,566 Lincoln National Corp. ......................... 2,590 79,228 Loews Corp. .................................... 3,040 113,210 Marsh & McLennan Cos., Inc. .................... 4,560 110,443 MetLife, Inc. .................................. 7,020 319,972 Principal Financial Group, Inc. ................ 2,740 80,063 Progressive Corp. .............................. 5,750 115,517 Prudential Financial, Inc. ..................... 3,980 252,969 Torchmark Corp. ................................ 710 38,013 Travelers Cos., Inc.(The)....................... 4,400 223,256 Unum Group...................................... 2,850 69,740 XL Capital, Ltd. -- Class A..................... 2,930 52,154 ------------ TOTAL INSURANCE 3,445,693 ------------ INTERNET & CATALOG RETAIL 0.5% Amazon.com, Inc.*............................... 2,930 401,586 Expedia, Inc. .................................. 1,810 42,734 Priceline.com, Inc.*............................ 390 102,199 ------------ TOTAL INTERNET & CATALOG RETAIL 546,519 ------------ INTERNET SOFTWARE & SERVICES 1.4% Akamai Technologies, Inc.*...................... 1,470 57,080 eBay, Inc.*..................................... 9,680 230,481 Google, Inc. -- Class A*........................ 2,070 1,087,661 Monster Worldwide, Inc.*........................ 1,080 18,824 VeriSign, Inc.*................................. 1,570 42,814 Yahoo!, Inc.*................................... 10,190 168,441 ------------ TOTAL INTERNET SOFTWARE & SERVICES 1,605,301 ------------ IT SERVICES 1.2% Automatic Data Processing, Inc. ................ 4,320 187,315 Cognizant Technology Solutions Corp. -- Class A*..................................... 2,550 130,509 Computer Sciences Corp.*........................ 1,320 69,155 Fidelity National Information Services, Inc. ... 2,830 74,401 Fiserv, Inc.*................................... 1,300 66,417 Mastercard, Inc. -- Class A..................... 830 205,873 Paychex, Inc. .................................. 2,750 84,150 SAIC, Inc.*..................................... 2,610 45,440 Total System Services, Inc. .................... 1,690 27,057 Visa, Inc. -- Class A........................... 3,820 344,679 Western Union Co. .............................. 5,850 106,762 ------------ TOTAL IT SERVICES 1,341,758 ------------ LEISURE EQUIPMENT & PRODUCTS 0.1% Eastman Kodak Co.*.............................. 2,300 14,076 Hasbro, Inc. ................................... 1,050 40,278 Mattel, Inc. ................................... 3,110 71,685 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 126,039 ------------ LIFE SCIENCES TOOLS & SERVICES 0.4% Life Technologies Corp.*........................ 1,550 84,800 Millipore Corp.*................................ 480 50,952 PerkinElmer, Inc. .............................. 1,010 25,301 Thermo Fisher Scientific, Inc.*................. 3,510 194,033 Waters Corp.*................................... 800 57,592 ------------ TOTAL LIFE SCIENCES TOOLS & SERVICES 412,678 ------------ MACHINERY 1.5% Caterpillar, Inc. .............................. 5,350 364,282 Cummins, Inc. .................................. 1,720 124,236 Danaher Corp. .................................. 2,240 188,787 Deere & Co. .................................... 3,630 217,147 Dover Corp. .................................... 1,600 83,552 Eaton Corp. .................................... 1,420 109,567 Flowserve Corp. ................................ 480 54,998 Illinois Tool Works, Inc. ...................... 3,310 169,141 PACCAR, Inc. ................................... 3,120 145,142 Pall Corp. ..................................... 1,010 39,380 Parker-Hannifin Corp. .......................... 1,380 95,468 Snap-on, Inc. .................................. 490 23,608 ------------ TOTAL MACHINERY 1,615,308 ------------ MEDIA 2.6% CBS Corp. -- Class B............................ 5,800 94,018 Comcast Corp. -- Class A........................ 24,300 479,682 DIRECTV -- Class A*............................. 8,010 290,202 Discovery Communications, Inc. -- Class A*...... 2,430 94,041 Gannett Co., Inc. .............................. 2,030 34,551 Interpublic Group of Cos., Inc.*................ 4,160 37,066 McGraw-Hill Cos., Inc. ......................... 2,700 91,044 Meredith Corp. ................................. 310 11,138 New York Times Co. -- Class A*.................. 1,000 9,920 News Corp. -- Class A........................... 19,300 297,606 Omnicom Group, Inc. ............................ 2,660 113,476 Scripps Networks Interactive -- Class A......... 770 34,912 Time Warner Cable, Inc. ........................ 3,020 169,875 Time Warner, Inc. .............................. 9,850 325,838 Viacom, Inc. -- Class B*........................ 5,200 183,716 Walt Disney Co.(The)............................ 16,610 611,912 Washington Post Co. -- Class B.................. 50 25,358 ------------ TOTAL MEDIA 2,904,355 ------------ METALS & MINING 0.9% AK Steel Holding Corp. ......................... 940 15,745 Alcoa, Inc. .................................... 8,740 117,465 Allegheny Technologies, Inc. ................... 840 44,915 Cliffs Natural Resources, Inc. ................. 1,160 72,535 Freeport-McMoRan Copper & Gold, Inc. ........... 3,690 278,706 Newmont Mining Corp. ........................... 4,210 236,097 Nucor Corp. .................................... 2,700 122,364 Titanium Metals Corp.*.......................... 720 11,102 United States Steel Corp. ...................... 1,230 67,232 ------------ TOTAL METALS & MINING 966,161 ------------ MULTI-UTILITIES 1.1% Ameren Corp. ................................... 2,030 52,699 CenterPoint Energy, Inc. ....................... 3,360 48,250 CMS Energy Corp. ............................... 1,970 32,032 Consolidated Edison, Inc. ...................... 2,410 108,932 Dominion Resources, Inc. ....................... 5,140 214,852 DTE Energy Co. ................................. 1,410 67,920 Integrys Energy Group, Inc. .................... 660 32,743 NiSource, Inc. ................................. 2,370 38,631 PG&E Corp. ..................................... 3,180 139,284 Public Service Enterprise Group, Inc. .......... 4,330 139,123 SCANA Corp. .................................... 950 37,496 Sempra Energy................................... 2,120 104,261 TECO Energy, Inc. .............................. 1,830 30,982
See Notes to Financial Statements. 18 Rydex 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Wisconsin Energy Corp. ......................... 1,000 $52,510 Xcel Energy, Inc. .............................. 3,910 85,042 ------------ TOTAL MULTI-UTILITIES 1,184,757 ------------ MULTILINE RETAIL 0.7% Big Lots, Inc.*................................. 710 27,122 Family Dollar Stores, Inc. ..................... 1,190 47,076 J.C. Penney Co., Inc. .......................... 2,020 58,923 Kohl's Corp.*................................... 2,630 144,624 Macy's, Inc. ................................... 3,610 83,752 Nordstrom, Inc. ................................ 1,420 58,689 Sears Holdings Corp.*........................... 420 50,799 Target Corp. ................................... 6,440 366,243 ------------ TOTAL MULTILINE RETAIL 837,228 ------------ OFFICE ELECTRONICS 0.1% Xerox Corp. .................................... 11,580 126,222 ------------ TOTAL OFFICE ELECTRONICS 126,222 ------------ OIL, GAS & CONSUMABLE FUELS 7.7% Anadarko Petroleum Corp. ....................... 4,220 262,315 Apache Corp. ................................... 2,880 293,069 Cabot Oil & Gas Corp. .......................... 890 32,156 Chesapeake Energy Corp. ........................ 5,580 132,804 Chevron Corp. .................................. 17,200 1,400,768 ConocoPhillips.................................. 12,730 753,489 CONSOL Energy, Inc. ............................ 1,880 83,998 Denbury Resources, Inc.*........................ 3,390 64,918 Devon Energy Corp. ............................. 3,830 257,874 El Paso Corp. .................................. 6,010 72,721 EOG Resources, Inc. ............................ 2,160 242,179 Exxon Mobil Corp. .............................. 40,440 2,743,854 Hess Corp. ..................................... 2,490 158,239 Marathon Oil Corp. ............................. 6,060 194,829 Massey Energy Co. .............................. 870 31,868 Murphy Oil Corp. ............................... 1,640 98,646 Noble Energy, Inc. ............................. 1,490 113,836 Occidental Petroleum Corp. ..................... 6,950 616,187 Peabody Energy Corp. ........................... 2,300 107,456 Pioneer Natural Resources Co. .................. 990 63,489 Range Resources Corp. .......................... 1,360 64,954 Southwestern Energy Co.*........................ 2,960 117,453 Spectra Energy Corp. ........................... 5,550 129,537 Sunoco, Inc. ................................... 1,000 32,780 Tesoro Corp. ................................... 1,200 15,780 Valero Energy Corp. ............................ 4,840 100,624 Williams Cos., Inc.(The)........................ 5,000 118,050 XTO Energy, Inc. ............................... 5,000 237,600 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 8,541,473 ------------ PAPER & FOREST PRODUCTS 0.2% International Paper Co. ........................ 3,710 99,205 MeadWestvaco Corp. ............................. 1,470 39,940 Weyerhaeuser Co. ............................... 1,810 89,631 ------------ TOTAL PAPER & FOREST PRODUCTS 228,776 ------------ PERSONAL PRODUCTS 0.2% Avon Products, Inc. ............................ 3,660 118,328 Estee Lauder Cos., Inc -- Class A............... 1,010 66,579 Mead Johnson Nutrition Co. ..................... 1,750 90,317 ------------ TOTAL PERSONAL PRODUCTS 275,224 ------------ PHARMACEUTICALS 4.8% Abbott Laboratories............................. 13,300 680,428 Allergan, Inc. ................................. 2,630 167,505 Bristol-Myers Squibb Co. ....................... 14,680 371,257 Eli Lilly & Co. ................................ 8,690 303,889 Forest Laboratories, Inc.*...................... 2,590 70,603 Johnson & Johnson, Inc. ........................ 23,570 1,515,551 King Pharmaceuticals, Inc.*..................... 2,130 20,874 Merck & Co., Inc. .............................. 26,680 934,867 Mylan, Inc.*.................................... 2,630 57,939 Pfizer, Inc. ................................... 69,120 1,155,687 Watson Pharmaceuticals, Inc.*................... 910 38,966 ------------ TOTAL PHARMACEUTICALS 5,317,566 ------------ PROFESSIONAL SERVICES 0.1% Dun & Bradstreet Corp. ......................... 440 33,867 Equifax, Inc. .................................. 1,080 36,288 Robert Half International, Inc. ................ 1,270 34,772 ------------ TOTAL PROFESSIONAL SERVICES 104,927 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 1.1% Apartment Investment & Management Co. -- Class A...................................... 1,000 22,410 AvalonBay Communities, Inc. .................... 700 72,828 Boston Properties, Inc. ........................ 1,190 93,843 Equity Residential.............................. 2,410 109,101 HCP, Inc. ...................................... 2,520 80,942 Health Care REIT, Inc. ......................... 1,060 47,626 Host Hotels & Resorts, Inc. .................... 5,590 90,893 Kimco Realty Corp. ............................. 3,470 54,097 Plum Creek Timber Co., Inc. .................... 1,390 55,322 ProLogis........................................ 4,060 53,470 Public Storage, Inc. ........................... 1,160 112,416 Simon Property Group, Inc. ..................... 2,480 220,770 Ventas, Inc. ................................... 1,340 63,288 Vornado Realty Trust............................ 1,350 112,550 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,189,556 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 0.0%(A) CB Richard Ellis Group, Inc. -- Class A*........ 2,320 40,182 ------------ TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 40,182 ------------ ROAD & RAIL 0.6% CSX Corp. ...................................... 3,340 187,207 Norfolk Southern Corp. ......................... 3,170 188,076 Ryder System, Inc. ............................. 460 21,399 Union Pacific Corp. ............................ 4,330 327,608 ------------ TOTAL ROAD & RAIL 724,290 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.1% Advanced Micro Devices, Inc.*................... 4,840 43,850 Altera Corp. ................................... 2,550 64,668 Analog Devices, Inc. ........................... 2,550 76,321 Applied Materials, Inc. ........................ 11,500 158,470 Broadcom Corp. -- Class A....................... 3,690 127,268 Intel Corp. .................................... 47,310 1,080,087 KLA-Tencor Corp. ............................... 1,470 50,068 Linear Technology Corp. ........................ 1,910 57,415 LSI Corp.*...................................... 5,620 33,832 MEMC Electronic Materials, Inc.*................ 1,950 25,292 Microchip Technology, Inc. ..................... 1,580 46,152 Micron Technology, Inc.*........................ 7,290 68,162 National Semiconductor Corp. ................... 2,040 30,151 Novellus Systems, Inc.*......................... 820 21,484
See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 Rydex 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONCLUDED) NVIDIA Corp.*................................... 4,750 $74,670 Teradyne, Inc.*................................. 1,520 18,590 Texas Instruments, Inc. ........................ 10,640 276,746 Xilinx, Inc. ................................... 2,370 61,099 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2,314,325 ------------ SOFTWARE 3.4% Adobe Systems, Inc.*............................ 4,490 150,819 Autodesk, Inc.*................................. 1,970 67,000 BMC Software, Inc.*............................. 1,560 61,402 CA, Inc. ....................................... 3,380 77,098 Citrix Systems, Inc.*........................... 1,570 73,790 Compuware Corp.*................................ 1,950 16,770 Electronic Arts, Inc.*.......................... 2,800 54,236 Intuit, Inc.*................................... 2,690 97,270 McAfee, Inc.*................................... 1,360 47,260 Microsoft Corp. ................................ 65,350 1,995,789 Novell, Inc.*................................... 2,980 16,718 Oracle Corp. ................................... 33,480 865,123 Red Hat, Inc.*.................................. 1,620 48,389 Salesforce.com, Inc.*........................... 940 80,464 Symantec Corp.*................................. 6,910 115,881 ------------ TOTAL SOFTWARE 3,768,009 ------------ SPECIALTY RETAIL 1.8% Abercrombie & Fitch Co. -- Class A.............. 750 32,798 AutoNation, Inc.*............................... 770 15,554 AutoZone, Inc.*................................. 250 46,253 Bed Bath & Beyond, Inc.*........................ 2,240 102,950 Best Buy Co., Inc. ............................. 2,940 134,064 GameStop Corp. -- Class A*...................... 1,310 31,846 Gap, Inc.(The).................................. 4,080 100,898 Home Depot, Inc. ............................... 14,560 513,240 Limited Brands, Inc. ........................... 2,290 61,372 Lowe's Cos., Inc. .............................. 12,610 341,983 O'Reilly Automotive, Inc.*...................... 1,180 57,690 Office Depot, Inc.*............................. 2,350 16,121 RadioShack Corp. ............................... 1,070 23,059 Ross Stores, Inc. .............................. 1,060 59,360 Sherwin-Williams Co.(The)....................... 790 61,675 Staples, Inc. .................................. 6,240 146,827 Tiffany & Co. .................................. 1,070 51,874 TJX Cos., Inc. ................................. 3,590 166,361 Urban Outfitters, Inc.*......................... 1,110 41,636 ------------ TOTAL SPECIALTY RETAIL 2,005,561 ------------ TEXTILES, APPAREL & LUXURY GOODS 0.4% Coach, Inc. .................................... 2,690 112,308 NIKE, Inc. -- Class B........................... 3,340 253,539 Polo Ralph Lauren Corp. ........................ 490 44,051 V.F. Corp. ..................................... 760 65,679 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 475,577 ------------ THRIFTS & MORTGAGE FINANCE 0.1% Hudson City Bancorp, Inc. ...................... 4,060 53,998 People's United Financial, Inc. ................ 3,180 49,385 ------------ TOTAL THRIFTS & MORTGAGE FINANCE 103,383 ------------ TOBACCO 1.2% Altria Group, Inc. ............................. 17,820 377,606 Lorillard, Inc. ................................ 1,330 104,232 Philip Morris International, Inc. .............. 16,110 790,679 Reynolds American, Inc. ........................ 1,450 77,459 ------------ TOTAL TOBACCO 1,349,976 ------------ TRADING COMPANIES & DISTRIBUTORS 0.1% Fastenal Co. ................................... 1,120 61,253 W.W. Grainger, Inc. ............................ 530 58,586 ------------ TOTAL TRADING COMPANIES & DISTRIBUTORS 119,839 ------------ WIRELESS TELECOMMUNICATION SERVICES 0.2% American Tower Corp. -- Class A*................ 3,450 140,795 MetroPCS Communications, Inc.*.................. 2,240 17,091 Sprint Nextel Corp.*............................ 25,500 108,375 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 266,261 ------------ TOTAL COMMON STOCKS (Cost $73,710,065) 91,861,339 ------------ FACE AMOUNT ------------------------------------------------------------------------------ REPURCHASE AGREEMENTS 6.0% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $66,551,055 on 05/03/10 collateralized by $6,735,000 FNMA at 1.000% due 11/23/11 with a value of $6,785,513................................... $6,651,000 $6,651,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $6,651,000) 6,651,000 ------------ TOTAL INVESTMENTS 88.7%(B) (Cost $80,361,065) 98,512,339 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--11.3% 12,608,422 ------------ NET ASSETS--100.0% $111,120,761 ------------------------------------------------------------------------------ UNREALIZED CONTRACTS GAIN ------------------------------------------------------------------------------ FUTURES CONTRACTS PURCHASED June 2010 S&P 500 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $36,037,575)(b).............................. 609 $931,422 ------------ UNREALIZED UNITS LOSS ------------------------------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS PURCHASED Goldman Sachs International May 2010 S&P 500 Index Swap, Terminating 05/21/10 (Notional Market Value $94,252,561)**(c)............... 79,425 $(1,900,965) ------------------------------------------------------------------------------
* 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. (b) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (c) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. REIT--Real Estate Investment Trust See Notes to Financial Statements. 20 RYDEX Inverse 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------- REPURCHASE AGREEMENTS 67.8% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $58,930,491 on 05/03/10 collateralized by $59,810,000 FHLB at 1.050% due 08/18/11 with a value of $60,109,050............ $58,930,000 $58,930,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $58,930,000) 58,930,000 ----------- TOTAL INVESTMENTS 67.8%(A) (Cost $58,930,000) 58,930,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--32.2% 28,033,753 ----------- NET ASSETS--100.0% $86,963,753 ------------------------------------------------------- UNREALIZED CONTRACTS LOSS ------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2010 S&P 500 Index E- Mini Futures Contracts (Aggregate Market Value of Contracts $33,078,825)(a)........ 559 $(541,683) ----------- UNREALIZED UNITS GAIN ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston May 2010 S&P 500 Index Swap, Terminating 05/21/10 (Notional Market Value $107,922,122)*(b)...... 90,944 $1,827,062 Goldman Sachs International May 2010 S&P 500 Index Swap, Terminating 05/21/10 (Notional Market Value $32,834,917)*(b)....... 27,669 541,970 ----------- (TOTAL NOTIONAL MARKET VALUE $140,757,039) $2,369,032 -------------------------------------------------------
* Price return based on S&P 500 Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FHLB--Federal Home Loan Bank See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 82.7% AEROSPACE & DEFENSE 0.5% Alliant Techsystems, Inc.*................... 580 $46,928 BE Aerospace, Inc.*........ 1,810 53,775 ----------- TOTAL AEROSPACE & DEFENSE 100,703 ----------- AIRLINES 0.3% Airtran Holdings, Inc.*.... 2,380 12,566 Alaska Air Group, Inc.*.... 630 26,088 JetBlue Airways Corp.*..... 3,660 20,460 ----------- TOTAL AIRLINES 59,114 ----------- AUTO COMPONENTS 0.7% BorgWarner, Inc.*.......... 2,070 89,714 Gentex Corp. .............. 2,460 52,865 ----------- TOTAL AUTO COMPONENTS 142,579 ----------- AUTOMOBILES 0.1% Thor Industries, Inc. ..... 690 24,640 ----------- TOTAL AUTOMOBILES 24,640 ----------- BEVERAGES 0.3% Hansen Natural Corp.*...... 1,250 55,100 ----------- TOTAL BEVERAGES 55,100 ----------- BIOTECHNOLOGY 1.1% OSI Pharmaceuticals, Inc.*................... 1,030 60,430 United Therapeutics Corp.*.................. 850 48,356 Vertex Pharmaceuticals, Inc.*................... 3,540 137,246 ----------- TOTAL BIOTECHNOLOGY 246,032 ----------- BUILDING PRODUCTS 0.2% Lennox International, Inc. ................... 870 39,376 ----------- TOTAL BUILDING PRODUCTS 39,376 ----------- CAPITAL MARKETS 2.0% Affiliated Managers Group, Inc.*................... 780 65,661 Apollo Investment Corp. ... 3,380 41,101 Eaton Vance Corp. ......... 2,080 73,299 Greenhill & Co., Inc. ..... 360 31,640 Jefferies Group, Inc. ..... 2,150 58,523 Raymond James Financial, Inc. ................... 1,750 53,620 SEI Investments Co. ....... 2,280 51,209 Waddell & Reed Financial, Inc. -- Class A......... 1,510 56,051 ----------- TOTAL CAPITAL MARKETS 431,104 ----------- CHEMICALS 2.8% Albemarle Corp. ........... 1,610 73,513 Ashland, Inc. ............. 1,380 82,193 Cabot Corp. ............... 1,160 37,746 Cytec Industries, Inc. .... 860 41,332 Intrepid Potash, Inc.*..... 730 19,170 Lubrizol Corp. ............ 1,210 109,311 Minerals Technologies, Inc. ................... 330 19,041 NewMarket Corp. ........... 210 23,100 Olin Corp. ................ 1,390 29,190 RPM International, Inc. ... 2,290 50,563 Scotts Miracle-Gro Co.(The) -- Class A..... 800 38,760 Sensient Technologies Corp. .................. 870 27,431 Valspar Corp. ............. 1,760 55,123 ----------- TOTAL CHEMICALS 606,473 ----------- COMMERCIAL BANKS 3.3% Associated Banc-Corp. ..... 3,050 44,317 Bancorpsouth, Inc. ........ 1,300 28,782 Bank of Hawaii Corp. ...... 850 44,948 Cathay General Bancorp..... 1,390 17,194 City National Corp. ....... 770 47,956 Commerce Bancshares Inc/Kansas City MO...... 1,290 53,432 Cullen/Frost Bankers, Inc. ................... 1,060 62,922 FirstMerit Corp. .......... 1,540 36,190 Fulton Financial Corp. .... 3,500 36,750 International Bancshares Corp. .................. 910 21,995 PacWest Bancorp............ 530 12,725 Prosperity Bancshares, Inc. ................... 820 32,160 SVB Financial Group*....... 730 35,938 Synovus Financial Corp. ... 13,190 39,702 TCF Financial Corp. ....... 2,180 40,613 Trustmark Corp. ........... 1,000 24,480 Valley National Bancorp.... 2,710 44,010 Webster Financial Corp. ... 1,180 24,450 Westamerica Bancorp........ 520 30,560 Wilmington Trust Corp. .... 1,560 27,035 ----------- TOTAL COMMERCIAL BANKS 706,159 ----------- COMMERCIAL SERVICES & SUPPLIES 1.3% Brink's Co.(The)........... 850 22,635 Clean Harbors, Inc.*....... 400 25,372 Copart, Inc.*.............. 1,190 42,471 Corrections Corp. of America*................ 2,050 42,476 Deluxe Corp. .............. 910 19,083 Herman Miller, Inc. ....... 990 21,008 HNI Corp. ................. 800 24,832 Mine Safety Appliances Co. .................... 530 15,577 Rollins, Inc. ............. 770 16,747 Waste Connections, Inc.*... 1,390 49,748 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 279,949 ----------- COMMUNICATIONS EQUIPMENT 1.5% ADC Telecommunications, Inc.*................... 1,710 13,697 Adtran, Inc. .............. 990 26,502 Ciena Corp.*............... 1,640 30,324 CommScope, Inc.*........... 1,670 54,409 F5 Networks, Inc.*......... 1,410 96,486 Palm, Inc.*................ 2,960 17,168 Plantronics, Inc. ......... 850 28,220 Polycom, Inc.*............. 1,490 48,499 ----------- TOTAL COMMUNICATIONS EQUIPMENT 315,305 ----------- COMPUTERS & PERIPHERALS 0.3% Diebold, Inc. ............. 1,170 36,679 NCR Corp.*................. 2,810 36,980 ----------- TOTAL COMPUTERS & PERIPHERALS 73,659 ----------- CONSTRUCTION & ENGINEERING 1.3% Aecom Technology Corp.*.... 2,010 60,441 Granite Construction, Inc. ................... 590 19,830 KBR, Inc. ................. 2,840 62,707 Shaw Group, Inc.(The)*..... 1,480 56,654 URS Corp.*................. 1,480 75,998 ----------- TOTAL CONSTRUCTION & ENGINEERING 275,630 ----------- CONSTRUCTION MATERIALS 0.4% Martin Marietta Materials, Inc. ................... 800 76,704 ----------- TOTAL CONSTRUCTION MATERIALS 76,704 -----------
See Notes to Financial Statements. 22 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) CONSUMER FINANCE 0.2% AmeriCredit Corp.*......... 1,700 $40,698 ----------- TOTAL CONSUMER FINANCE 40,698 ----------- CONTAINERS & PACKAGING 1.2% AptarGroup, Inc. .......... 1,200 51,648 Greif, Inc. -- Class A..... 610 36,100 Packaging Corp. of America................. 1,820 45,009 Silgan Holdings, Inc. ..... 470 28,355 Sonoco Products Co. ....... 1,770 58,640 Temple-Inland, Inc. ....... 1,900 44,308 ----------- TOTAL CONTAINERS & PACKAGING 264,060 ----------- DISTRIBUTORS 0.2% LKQ Corp.*................. 2,500 52,650 ----------- TOTAL DISTRIBUTORS 52,650 ----------- DIVERSIFIED CONSUMER SERVICES 1.5% Brink's Home Security Holdings, Inc.*......... 810 33,972 Career Education Corp.*.... 1,200 35,124 Corinthian Colleges, Inc.*................... 1,550 24,211 ITT Educational Services, Inc.*................... 530 53,599 Matthews International Corp. -- Class A........ 540 18,900 Regis Corp. ............... 1,010 19,311 Service Corp. International........... 4,490 40,320 Sotheby's.................. 1,190 39,746 Strayer Education, Inc. ... 250 60,780 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 325,963 ----------- DIVERSIFIED FINANCIAL SERVICES 0.3% MSCI, Inc. -- Class A*..... 1,860 64,449 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 64,449 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.3% Cincinnati Bell, Inc.*..... 3,550 11,964 TW telecom, Inc.*.......... 2,650 47,170 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 59,134 ----------- ELECTRIC UTILITIES 1.5% Cleco Corp. ............... 1,070 29,318 DPL, Inc. ................. 2,120 59,742 Great Plains Energy, Inc. ................... 2,390 46,199 Hawaiian Electric Industries, Inc. ....... 1,630 38,060 IDACORP, Inc. ............. 850 30,668 NV Energy, Inc. ........... 4,150 51,833 PNM Resources, Inc. ....... 1,530 20,793 Westar Energy, Inc. ....... 1,930 45,722 ----------- TOTAL ELECTRIC UTILITIES 322,335 ----------- ELECTRICAL EQUIPMENT 1.1% AMETEK, Inc. .............. 1,910 82,608 Hubbell, Inc. -- Class B... 1,060 49,258 Regal-Beloit Corp. ........ 660 41,758 Thomas & Betts Corp.*...... 930 39,004 Woodward Governor Co. ..... 1,000 32,050 ----------- TOTAL ELECTRICAL EQUIPMENT 244,678 ----------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 2.0% Arrow Electronics, Inc.*... 2,120 64,660 Avnet, Inc.*............... 2,680 85,680 Ingram Micro, Inc. -- Class A*...................... 2,890 52,482 Itron, Inc.*............... 710 56,523 National Instruments Corp. .................. 1,010 34,926 Tech Data Corp.*........... 900 38,610 Trimble Navigation, Ltd.*.. 2,130 69,672 Vishay Intertechnology, Inc.*................... 3,300 34,353 ----------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 436,906 ----------- ENERGY EQUIPMENT & SERVICES 1.9% Atwood Oceanics, Inc.*..... 1,000 36,410 Exterran Holdings, Inc.*... 1,100 32,065 Helix Energy Solutions Group, Inc.*............ 1,620 23,620 Oceaneering International, Inc.*................... 970 63,535 Patterson-UTI Energy, Inc. ................... 2,710 41,436 Pride International, Inc.*................... 3,100 94,023 Superior Energy Services, Inc.*................... 1,390 37,613 Tidewater, Inc. ........... 910 48,785 Unit Corp.*................ 710 33,917 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 411,404 ----------- FOOD & STAPLES RETAILING 0.3% BJ's Wholesale Club, Inc.*................... 980 37,514 Ruddick Corp. ............. 720 25,445 ----------- TOTAL FOOD & STAPLES RETAILING 62,959 ----------- FOOD PRODUCTS 1.2% Corn Products International, Inc. .... 1,330 47,880 Flowers Foods, Inc. ....... 1,360 35,850 Green Mountain Coffee Roasters, Inc.*......... 620 45,049 Lancaster Colony Corp. .... 340 18,690 Ralcorp Holdings, Inc.*.... 970 64,553 Smithfield Foods, Inc.*.... 2,500 46,850 Tootsie Roll Industries, Inc. ................... 480 12,768 ----------- TOTAL FOOD PRODUCTS 271,640 ----------- GAS UTILITIES 1.5% AGL Resources, Inc. ....... 1,370 54,129 Atmos Energy Corp. ........ 1,640 48,511 Energen Corp. ............. 1,270 62,065 National Fuel Gas Co. ..... 1,430 74,388 UGI Corp. ................. 1,920 52,781 WGL Holdings, Inc. ........ 890 31,809 ----------- TOTAL GAS UTILITIES 323,683 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 3.3% Beckman Coulter, Inc. ..... 1,230 76,752 Edwards Lifesciences Corp.*.................. 1,000 103,080 Gen-Probe, Inc.*........... 870 41,230 Hill-Rom Holdings, Inc. ... 1,110 35,198 Hologic, Inc.*............. 4,570 81,666 Idexx Laboratories, Inc.*.. 1,030 68,124 Immucor, Inc.*............. 1,230 26,334 Kinetic Concepts, Inc.*.... 1,100 47,630 Masimo Corp. .............. 920 21,537 ResMed, Inc.*.............. 1,330 91,012 STERIS Corp. .............. 1,040 34,611 Teleflex, Inc. ............ 700 42,924 Thoratec Corp.*............ 1,010 45,036 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 715,134 ----------- HEALTH CARE PROVIDERS & SERVICES 3.0% Community Health Systems, Inc.*................... 1,650 67,419 Health Management Associates, Inc. -- Class A*........ 4,420 41,194 Health Net, Inc.*.......... 1,770 38,975 Henry Schein, Inc.*........ 1,600 96,752 Kindred Healthcare, Inc.*.. 690 12,310
See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) LifePoint Hospitals, Inc.*................... 970 $37,035 Lincare Holdings, Inc.*.... 1,160 54,160 MEDNAX, Inc.*.............. 830 45,600 Omnicare, Inc. ............ 2,130 59,193 Owens & Minor, Inc. ....... 1,110 34,909 Psychiatric Solutions, Inc.*................... 990 31,848 Universal Health Services, Inc. -- Class B......... 1,710 63,475 VCA Antech, Inc.*.......... 1,510 42,975 WellCare Health Plans, Inc.*................... 750 21,473 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 647,318 ----------- HOTELS, RESTAURANTS & LEISURE 2.0% Bally Technologies, Inc.*.. 980 45,198 Bob Evans Farms, Inc. ..... 540 16,702 Boyd Gaming Corp.*......... 970 12,319 Brinker International, Inc. ................... 1,810 33,521 Burger King Holdings, Inc. ................... 1,630 34,393 Cheesecake Factory, Inc.(The)*.............. 1,070 29,072 Chipotle Mexican Grill, Inc. -- Class A*........ 560 75,550 International Speedway Corp. -- Class A........ 540 16,502 Life Time Fitness, Inc.*... 730 26,835 Panera Bread Co. -- Class A*................ 560 43,646 Scientific Games Corp. -- Class A*....... 1,150 16,916 Wendy's/Arby's Group, Inc. -- Class A......... 6,120 32,497 WMS Industries, Inc.*...... 930 46,519 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 429,670 ----------- HOUSEHOLD DURABLES 1.6% American Greetings Corp. -- Class A........ 700 17,192 KB HOME.................... 1,310 24,274 MDC Holdings, Inc. ........ 670 25,661 Mohawk Industries, Inc.*... 990 63,102 NVR, Inc.*................. 110 78,985 Ryland Group, Inc. ........ 770 17,541 Toll Brothers, Inc.*....... 2,480 55,974 Tupperware Brands Corp. ... 1,110 56,688 ----------- TOTAL HOUSEHOLD DURABLES 339,417 ----------- HOUSEHOLD PRODUCTS 0.7% Church & Dwight Co., Inc. ................... 1,250 86,563 Energizer Holdings, Inc.*.. 1,230 75,153 ----------- TOTAL HOUSEHOLD PRODUCTS 161,716 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.1% Dynegy, Inc. -- Class A*... 8,920 11,864 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 11,864 ----------- INDUSTRIAL CONGLOMERATES 0.2% Carlisle Cos., Inc. ....... 1,060 39,994 ----------- TOTAL INDUSTRIAL CONGLOMERATES 39,994 ----------- INSURANCE 3.7% American Financial Group, Inc. ................... 1,350 39,730 Arthur J. Gallagher & Co. .................... 1,810 47,549 Brown & Brown, Inc. ....... 2,080 41,891 Everest Re Group, Ltd. .... 1,050 80,482 Fidelity National Financial, Inc. -- Class A................. 4,070 61,783 First American Corp. ...... 1,830 63,263 Hanover Insurance Group, Inc.(The)............... 790 35,589 HCC Insurance Holdings, Inc. ................... 2,030 55,196 Horace Mann Educators Corp. .................. 690 11,875 Mercury General Corp. ..... 630 28,344 Old Republic International Corp. .................. 4,250 63,792 Protective Life Corp. ..... 1,510 36,346 Reinsurance Group of America, Inc. .......... 1,290 66,603 StanCorp Financial Group, Inc. ................... 830 37,317 Transatlantic Holdings, Inc. ................... 1,140 56,692 Unitrin, Inc. ............. 880 25,740 W.R. Berkley Corp. ........ 2,270 61,290 ----------- TOTAL INSURANCE 813,482 ----------- INTERNET & CATALOG RETAIL 0.3% NetFlix, Inc.*............. 750 74,078 ----------- TOTAL INTERNET & CATALOG RETAIL 74,078 ----------- INTERNET SOFTWARE & SERVICES 0.7% AOL, Inc.*................. 1,880 43,917 Digital River, Inc.*....... 680 18,999 Equinix, Inc.*............. 790 79,514 ValueClick, Inc.*.......... 1,480 15,214 ----------- TOTAL INTERNET SOFTWARE & SERVICES 157,644 ----------- IT SERVICES 2.2% Acxiom Corp.*.............. 1,400 26,712 Alliance Data Systems Corp.*.................. 930 69,806 Broadridge Financial Solutions, Inc. ........ 2,380 56,668 Convergys Corp.*........... 2,180 27,555 DST Systems, Inc. ......... 680 28,866 Gartner, Inc.*............. 1,070 25,766 Global Payments, Inc. ..... 1,440 61,646 Hewitt Associates, Inc. -- Class A*........ 1,480 60,665 Lender Processing Services, Inc. ................... 1,690 63,797 Mantech International Corp. -- Class A*....... 390 17,562 NeuStar, Inc. -- Class A*.. 1,320 32,300 SRA International, Inc. -- Class A*........ 760 17,541 ----------- TOTAL IT SERVICES 488,884 ----------- LIFE SCIENCES TOOLS & SERVICES 1.6% Affymetrix, Inc.*.......... 1,250 8,675 Bio-Rad Laboratories, Inc. -- Class A*........ 340 37,975 Charles River Laboratories International, Inc.*.... 1,160 38,837 Covance, Inc.*............. 1,130 64,568 Mettler Toledo International, Inc.*.... 600 75,288 Pharmaceutical Product Development, Inc. ...... 2,090 57,475 Techne Corp. .............. 660 43,725 Varian, Inc.*.............. 510 26,413 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 352,956 ----------- MACHINERY 4.6% AGCO Corp.*................ 1,630 57,083 Bucyrus International, Inc. -- Class A......... 1,430 90,104 Crane Co. ................. 830 29,830 Donaldson Co., Inc. ....... 1,370 63,431 Federal Signal Corp. ...... 860 6,932 Graco, Inc. ............... 1,060 36,761 Harsco Corp. .............. 1,420 43,963 IDEX Corp. ................ 1,430 48,048 Joy Global, Inc. .......... 1,820 103,394 Kennametal, Inc. .......... 1,440 47,318 Lincoln Electric Holdings, Inc. ................... 750 44,955 Nordson Corp. ............. 600 43,092 Oshkosh Corp.*............. 1,580 61,020 Pentair, Inc. ............. 1,740 62,919
See Notes to Financial Statements. 24 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) SPX Corp. ................. 880 $61,494 Terex Corp.*............... 1,910 50,653 Timken Co. ................ 1,400 49,252 Trinity Industries, Inc. .. 1,400 34,846 Valmont Industries, Inc. .. 350 29,152 Wabtec Corp. .............. 840 39,967 ----------- TOTAL MACHINERY 1,004,214 ----------- MARINE 0.3% Alexander & Baldwin, Inc. ................... 730 25,973 Kirby Corp.*............... 950 39,976 ----------- TOTAL MARINE 65,949 ----------- MEDIA 0.7% DreamWorks Animation SKG, Inc. -- Class A*........ 1,340 53,185 Harte-Hanks, Inc. ......... 670 9,648 John Wiley & Sons, Inc. -- Class A......... 760 32,125 Lamar Advertising Co. -- Class A*......... 940 34,987 Scholastic Corp. .......... 450 12,154 ----------- TOTAL MEDIA 142,099 ----------- METALS & MINING 0.9% Carpenter Technology Corp. .................. 780 30,631 Commercial Metals Co. ..... 2,000 29,760 Reliance Steel & Aluminum Co. .................... 1,130 55,155 Steel Dynamics, Inc. ...... 3,820 60,012 Worthington Industries, Inc. ................... 1,080 17,248 ----------- TOTAL METALS & MINING 192,806 ----------- MULTI-UTILITIES 1.5% Alliant Energy Corp. ...... 1,960 67,032 Black Hills Corp. ......... 690 22,694 MDU Resources Group, Inc. ................... 3,320 70,384 NSTAR...................... 1,890 69,174 OGE Energy Corp. .......... 1,720 71,174 Vectren Corp. ............. 1,430 35,764 ----------- TOTAL MULTI-UTILITIES 336,222 ----------- MULTILINE RETAIL 0.6% 99 Cents Only Stores*...... 810 12,571 Dollar Tree, Inc.*......... 1,560 94,723 Saks, Inc.*................ 2,820 27,495 ----------- TOTAL MULTILINE RETAIL 134,789 ----------- OFFICE ELECTRONICS 0.1% Zebra Technologies Corp. -- Class A*....... 1,040 30,212 ----------- TOTAL OFFICE ELECTRONICS 30,212 ----------- OIL, GAS & CONSUMABLE FUELS 3.2% Arch Coal, Inc. ........... 2,870 77,490 Bill Barrett Corp.*........ 680 23,174 Cimarex Energy Co. ........ 1,480 100,758 Comstock Resources, Inc.*.. 830 26,610 Forest Oil Corp.*.......... 1,990 58,307 Frontier Oil Corp. ........ 1,850 28,120 Mariner Energy, Inc.*...... 1,800 42,984 Newfield Exploration Co.*.. 2,350 136,747 Overseas Shipholding Group, Inc. ................... 470 23,528 Patriot Coal Corp.*........ 1,330 26,188 Plains Exploration & Production Co.*......... 2,460 72,103 Quicksilver Resources, Inc.*................... 2,090 28,988 Southern Union Co. ........ 2,200 57,486 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 702,483 ----------- PAPER & FOREST PRODUCTS 0.1% Louisiana-Pacific Corp.*... 2,240 26,342 ----------- TOTAL PAPER & FOREST PRODUCTS 26,342 ----------- PERSONAL PRODUCTS 0.4% Alberto-Culver Co. ........ 1,510 43,488 NBTY, Inc.*................ 1,120 45,562 ----------- TOTAL PERSONAL PRODUCTS 89,050 ----------- PHARMACEUTICALS 1.0% Endo Pharmaceuticals Holdings, Inc.*......... 2,070 45,333 Medicis Pharmaceutical Corp. -- Class A........ 1,020 25,888 Perrigo Co. ............... 1,420 86,662 Valeant Pharmaceuticals International*.......... 1,140 51,300 ----------- TOTAL PHARMACEUTICALS 209,183 ----------- PROFESSIONAL SERVICES 0.9% Corporate Executive Board Co.(The)................ 600 16,476 FTI Consulting, Inc.*...... 820 33,727 Korn/Ferry International*.. 810 13,130 Manpower, Inc. ............ 1,450 81,345 Navigant Consulting, Inc.*................... 880 11,334 Towers Watson & Co.- Class A................. 750 36,000 ----------- TOTAL PROFESSIONAL SERVICES 192,012 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 6.3% Alexandria Real Estate Equities, Inc. ......... 780 55,232 AMB Property Corp. ........ 2,920 81,351 BRE Properties, Inc. ...... 1,100 45,936 Camden Property Trust...... 1,130 54,726 Corporate Office Properties Trust................... 1,030 41,664 Cousins Properties, Inc. .. 1,780 14,347 Duke Realty Corp. ......... 3,960 53,579 Equity One, Inc. .......... 620 12,034 Essex Property Trust, Inc. ................... 510 53,968 Federal Realty Investment Trust................... 1,080 83,581 Highwoods Properties, Inc. ................... 1,260 40,282 Hospitality Properties Trust................... 2,180 57,748 Liberty Property Trust..... 1,990 67,282 Macerich Co.(The).......... 2,260 101,045 Mack-Cali Realty Corp. .... 1,400 48,104 Nationwide Health Properties, Inc. ....... 2,080 72,842 Omega Healthcare Investors, Inc. ................... 1,570 31,431 Potlatch Corp. ............ 700 26,222 Rayonier, Inc. ............ 1,410 69,062 Realty Income Corp. ....... 1,850 60,661 Regency Centers Corp. ..... 1,440 59,112 Senior Housing Properties Trust................... 2,250 50,580 SL Green Realty Corp. ..... 1,380 85,795 UDR, Inc. ................. 2,750 55,852 Weingarten Realty Investors............... 1,850 42,772 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,365,208 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.3% Jones Lang LaSalle, Inc. .. 740 58,371 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 58,371 ----------- ROAD & RAIL 1.0% Con-way, Inc. ............. 870 33,791 J.B. Hunt Transport Services, Inc. ......... 1,550 57,133 Kansas City Southern*...... 1,800 72,990
See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONCLUDED) Landstar System, Inc. ..... 890 $39,356 Werner Enterprises, Inc. .. 780 17,487 ----------- TOTAL ROAD & RAIL 220,757 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.1% Atmel Corp.*............... 8,050 43,792 Cree, Inc.*................ 1,880 137,635 Fairchild Semiconductor International, Inc.*.... 2,200 24,684 Integrated Device Technology, Inc.*....... 2,930 19,367 International Rectifier Corp.*.................. 1,260 29,005 Intersil Corp. -- Class A.. 2,170 32,290 Lam Research Corp.*........ 2,260 91,643 RF Micro Devices, Inc.*.... 4,740 26,639 Semtech Corp.*............. 1,090 19,784 Silicon Laboratories, Inc.*................... 810 39,163 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 464,002 ----------- SOFTWARE 3.0% ACI Worldwide, Inc.*....... 600 11,274 Advent Software, Inc.*..... 280 12,650 Ansys, Inc.*............... 1,590 71,550 Cadence Design Systems, Inc.*................... 4,750 35,435 Factset Research Systems, Inc. ................... 740 55,663 Fair Isaac Corp. .......... 820 17,269 Informatica Corp.*......... 1,600 40,016 Jack Henry & Associates, Inc. ................... 1,490 38,025 Mentor Graphics Corp.*..... 1,840 16,542 MICROS Systems, Inc.*...... 1,410 52,396 Parametric Technology Corp.*.................. 2,070 38,481 Quest Software, Inc.*...... 1,110 19,458 Rovi Corp.*................ 1,840 71,723 Solera Holdings, Inc. ..... 1,230 47,810 Sybase, Inc.*.............. 1,460 63,335 Synopsys, Inc.*............ 2,590 58,819 ----------- TOTAL SOFTWARE 650,446 ----------- SPECIALTY RETAIL 3.7% Aaron's, Inc. ............. 1,440 32,501 Advance Auto Parts, Inc. .. 1,630 73,513 Aeropostale, Inc.*......... 1,750 50,820 American Eagle Outfitters, Inc. ................... 3,670 61,693 AnnTaylor Stores Corp.*.... 1,040 22,568 Barnes & Noble, Inc. ...... 700 15,428 CarMax, Inc.*.............. 3,940 96,806 Chico's FAS, Inc. ......... 3,150 46,903 Coldwater Creek, Inc.*..... 1,020 7,222 Collective Brands, Inc.*... 1,130 26,499 Dick's Sporting Goods, Inc.*................... 1,580 45,994 Dress Barn, Inc.(The)*..... 1,050 29,064 Foot Locker, Inc. ......... 2,770 42,519 Guess?, Inc. .............. 1,030 47,246 J. Crew Group, Inc.*....... 990 46,005 PetSmart, Inc. ............ 2,180 72,093 Rent-A-Center, Inc.*....... 1,160 29,951 Williams-Sonoma, Inc. ..... 1,880 54,144 ----------- TOTAL SPECIALTY RETAIL 800,969 ----------- TEXTILES, APPAREL & LUXURY GOODS 1.0% Fossil, Inc.*.............. 850 33,065 Hanesbrands, Inc.*......... 1,690 48,114 Phillips-Van Heusen Corp. .................. 1,000 63,010 Timberland Co. -- Class A*...................... 770 16,555 Under Armour, Inc. -- Class A*................ 670 22,613 Warnaco Group, Inc.*....... 810 38,750 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 222,107 ----------- THRIFTS & MORTGAGE FINANCE 1.2% Astoria Financial Corp. ... 1,450 23,403 First Niagara Financial Group, Inc. ............ 3,690 51,291 New York Community Bancorp, Inc. ................... 7,660 126,160 NewAlliance Bancshares, Inc. ................... 1,870 24,366 Washington Federal, Inc. .. 1,990 40,935 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 266,155 ----------- TOBACCO 0.1% Universal Corp. ........... 430 22,265 ----------- TOTAL TOBACCO 22,265 ----------- TRADING COMPANIES & DISTRIBUTORS 0.4% GATX Corp. ................ 810 26,438 MSC Industrial Direct Co. -- Class A.......... 780 42,502 United Rentals, Inc.*...... 1,060 15,222 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 84,162 ----------- WATER UTILITIES 0.2% Aqua America, Inc. ........ 2,410 44,175 ----------- TOTAL WATER UTILITIES 44,175 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.4% Syniverse Holdings, Inc.*.. 1,230 24,698 Telephone & Data Systems, Inc. ................... 1,630 56,496 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 81,194 ----------- TOTAL COMMON STOCKS (Cost $12,262,140) 17,950,415 ------------------------------------------------------- FACE AMOUNT ------------------------------------------------------- REPURCHASE AGREEMENTS 7.2% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $1,557,013 on 05/03/10 collateralized by $1,580,000 FNMA at 1.000% due 11/23/11 with a value of $1,591,850... $1,557,000 $1,557,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $1,557,000) 1,557,000 ----------- TOTAL INVESTMENTS 89.9%(A) (Cost $13,819,140) 19,507,415 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--10.1% 2,201,605 ----------- NET ASSETS--100.0% $21,709,020 ------------------------------------------------------- UNREALIZED CONTRACTS GAIN ------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2010 S&P MidCap 400 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $8,944,540)(a).......... 109 $413,976 -----------
See Notes to Financial Statements. 26 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
UNREALIZED UNITS LOSS ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston May 2010 S&P MidCap 400 Index Swap, Terminating 05/21/10 (Notional Market Value $9,734,668)**(b)........ 11,827 $(195,034) Goldman Sachs International May 2010 S&P MidCap 400 Index Swap, Terminating 05/21/10 (Notional Market Value $6,884,115)**(b)........ 8,364 (192,290) ----------- (TOTAL NOTIONAL MARKET VALUE $16,618,783) $(387,324) -------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P MidCap 400 Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. REIT--Real Estate Investment Trust See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 RYDEX Inverse 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------ REPURCHASE AGREEMENTS 64.2% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $2,199,018 on 05/03/10 collateralized by $2,230,000 FNMA at 1.000% due 11/23/11 with a value of $2,246,725... $2,199,000 $2,199,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $2,199,000) 2,199,000 ---------- TOTAL INVESTMENTS 64.2%(A) (Cost $2,199,000) 2,199,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--35.8% 1,224,270 NET ASSETS--100.0% $3,423,270 ------------------------------------------------------ UNREALIZED CONTRACTS LOSS ------------------------------------------------------ FUTURES CONTRACTS SOLD SHORT June 2010 S&P MidCap 400 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $1,148,840)(a).......... 14 $(21,282) ---------- UNREALIZED UNITS GAIN ------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston May 2010 S&P MidCap 400 Index Swap, Terminating 05/21/10 (Notional Market Value $4,116,115)*(b)......... 5,001 $74,453 Goldman Sachs International May 2010 S&P MidCap 400 Index Swap, Terminating 05/21/10 (Notional Market Value $1,542,497)*(b)......... 1,874 43,083 ---------- (TOTAL NOTIONAL MARKET VALUE $5,658,612) $117,536 ------------------------------------------------------
* Price return based on S&P MidCap 400 Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. 28 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 82.6% AEROSPACE & DEFENSE 1.5% AAR Corp.*................. 910 $22,186 Aerovironment, Inc.*....... 310 8,116 American Science & Engineering, Inc. ...... 210 15,782 Applied Signal Technology, Inc. ................... 300 5,607 Argon ST, Inc.*............ 320 8,320 Ascent Solar Technologies, Inc.*................... 440 1,676 Astronics Corp.*........... 220 3,181 Ceradyne, Inc.*............ 600 13,320 Cubic Corp. ............... 370 13,805 Curtiss-Wright Corp. ...... 1,059 37,775 DigitalGlobe, Inc.*........ 350 9,296 Ducommun, Inc. ............ 240 5,494 DynCorp International, Inc. -- Class A*........ 580 9,976 Esterline Technologies Corp.*.................. 700 39,046 GenCorp, Inc.*............. 1,179 7,333 GeoEye, Inc.*.............. 489 13,937 Global Defense Technology & Systems, Inc.*.......... 110 1,554 HEICO Corp. ............... 675 29,072 Herley Industries, Inc.*... 320 4,688 Hexcel Corp.*.............. 2,259 36,596 Ladish Co., Inc.*.......... 370 10,171 LMI Aerospace, Inc.*....... 200 3,452 Moog, Inc. -- Class A*..... 1,060 39,400 Orbital Sciences Corp.*.... 1,319 24,243 Stanley, Inc.*............. 270 8,540 Taser International, Inc.*................... 1,449 6,854 Teledyne Technologies, Inc.*................... 840 36,624 Todd Shipyards Corp. ...... 140 2,223 Triumph Group, Inc. ....... 390 30,248 ----------- TOTAL AEROSPACE & DEFENSE 448,515 ----------- AIR FREIGHT & LOGISTICS 0.3% Air Transport Services Group, Inc.*............ 1,299 7,144 Atlas Air Worldwide Holdings, Inc.*......... 490 27,082 Dynamex, Inc.*............. 230 4,069 Forward Air Corp. ......... 680 19,054 HUB Group, Inc. -- Class A*................ 870 27,849 Pacer International, Inc.*................... 820 5,445 ----------- TOTAL AIR FREIGHT & LOGISTICS 90,643 ----------- AIRLINES 0.8% Airtran Holdings, Inc.*.... 3,148 16,621 Alaska Air Group, Inc.*.... 850 35,199 Allegiant Travel Co.*...... 360 18,515 Hawaiian Holdings, Inc.*... 1,209 8,584 JetBlue Airways Corp.*..... 5,937 33,188 Republic Airways Holdings, Inc.*................... 810 5,071 SkyWest, Inc. ............. 1,299 19,459 UAL Corp.*................. 3,918 84,550 US Airways Group, Inc.*.... 3,778 26,710 ----------- TOTAL AIRLINES 247,897 ----------- AUTO COMPONENTS 0.8% American Axle & Manufacturing Holdings, Inc.*................... 1,309 14,085 Amerigon, Inc.*............ 500 4,905 ArvinMeritor, Inc.*........ 2,202 33,735 China Automotive Systems, Inc.*................... 100 2,224 Cooper Tire & Rubber Co. .. 1,379 29,262 Dana Holding Corp.*........ 3,268 43,660 Dorman Products, Inc.*..... 270 6,845 Drew Industries, Inc.*..... 430 11,030 Exide Technologies*........ 1,179 7,003 Fuel Systems Solutions, Inc.*................... 320 10,070 Hawk Corp. -- Class A*..... 130 3,008 Modine Manufacturing Co.*.. 1,099 15,397 Raser Technologies, Inc.*.. 1,529 1,233 Spartan Motors, Inc. ...... 760 4,689 Standard Motor Products, Inc. ................... 430 4,584 Stoneridge, Inc.*.......... 350 3,777 Superior Industries International, Inc. .... 540 9,104 Tenneco, Inc.*............. 1,389 35,795 Wonder Auto Technolgy, Inc.*................... 420 4,859 ----------- TOTAL AUTO COMPONENTS 245,265 ----------- AUTOMOBILES 0.0%(A) Winnebago Industries, Inc.*................... 680 11,308 ----------- TOTAL AUTOMOBILES 11,308 ----------- BEVERAGES 0.1% Boston Beer Co., Inc. -- Class A*........ 210 11,972 Coca-Cola Bottling Co. Consolidated............ 100 5,508 Heckmann Corp.*............ 2,079 12,474 National Beverage Corp. ... 250 2,900 ----------- TOTAL BEVERAGES 32,854 ----------- BIOTECHNOLOGY 3.2% Acorda Therapeutics, Inc.*................... 890 34,488 Affymax, Inc.*............. 410 9,774 Alkermes, Inc.*............ 2,219 29,069 Allos Therapeutics, Inc.*.. 1,689 13,343 Alnylam Pharmaceuticals, Inc.*................... 840 14,246 AMAG Pharmaceuticals, Inc.*................... 490 16,734 Amicus Therapeutics, Inc.*................... 429 1,394 Arena Pharmaceuticals, Inc.*................... 2,366 7,690 Ariad Pharmaceuticals, Inc.*................... 2,549 8,972 ArQule, Inc.*.............. 970 6,179 Array BioPharma, Inc.*..... 1,189 4,399 AVI BioPharma, Inc.*....... 2,249 2,991 BioCryst Pharmaceuticals, Inc.*................... 570 4,332 Biospecifics Technologies Corp.*.................. 90 2,848 Cardium Therapeutics, Inc.*................... 1,503 872 Celera Corp.*.............. 1,919 14,335 Cell Therapeutics, Inc.*... 13,463 8,313 Celldex Therapeutics Inc*.. 590 4,820 Cepheid, Inc.*............. 1,359 27,166 Chelsea Therapeutics International, Ltd.*.... 738 2,959 Clinical Data, Inc.*....... 310 5,791 Cubist Pharmaceuticals, Inc.*................... 1,349 30,245 Curis, Inc.*............... 1,729 5,706 Cytokinetics, Inc.*........ 1,020 3,284 Cytori Therapeutics, Inc.*................... 690 3,892 Dyax Corp.*................ 1,679 5,877 Emergent Biosolutions, Inc.*................... 380 6,186 Enzon Pharmaceuticals, Inc.*................... 1,385 14,653 Exelixis, Inc.*............ 2,499 14,444 Genomic Health, Inc.*...... 330 5,287 Geron Corp.*............... 2,276 13,269 GTx, Inc.*................. 450 1,476 Halozyme Therapeutics, Inc.*................... 1,589 13,538 Hemispherx Biopharma, Inc.*................... 2,898 2,217 Human Genome Sciences, Inc.*................... 4,288 118,735 Idenix Pharmaceuticals, Inc.*................... 730 3,373 Idera Pharmaceuticals, Inc.*................... 510 3,193 Immunogen, Inc.*........... 1,339 13,270 Immunomedics, Inc.*........ 1,529 5,352 Incyte Corp.*.............. 2,039 27,363
See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Infinity Pharmaceuticals, Inc.*................... 420 $2,898 Insmed, Inc.*.............. 2,929 3,105 InterMune, Inc.*........... 1,040 44,262 Ironwood Pharmaceuticals, Inc.*................... 450 5,814 Isis Pharmaceuticals, Inc.*................... 2,179 23,424 Lexicon Pharmaceuticals, Inc.*................... 3,730 6,005 Ligand Pharmaceuticals, Inc. -- Class B*........ 2,659 4,893 MannKind Corp.*............ 1,349 9,376 Martek Biosciences Corp.*.. 780 17,183 Maxygen, Inc.*............. 570 3,654 Medivation, Inc.*.......... 670 7,477 Metabolix, Inc.*........... 520 6,484 Micromet, Inc.*............ 1,576 12,009 Molecular Insight Pharmaceuticals, Inc.*.. 400 884 Momenta Pharmaceuticals, Inc.*................... 920 12,770 Myriad Pharmaceuticals, Inc.*................... 560 2,750 Nabi Biopharmaceuticals*... 1,160 6,519 Nanosphere, Inc.*.......... 300 1,890 Neurocrine Biosciences, Inc.*................... 1,097 3,521 NeurogesX, Inc.*........... 240 2,400 Novavax, Inc.*............. 1,679 4,752 NPS Pharmaceuticals, Inc.*................... 1,109 7,730 Omeros Corp.*.............. 160 944 OncoGenex Pharmaceutical, Inc.*................... 100 2,200 Onyx Pharmaceuticals, Inc.*................... 1,449 41,833 Opko Health, Inc.*......... 1,020 2,203 Orexigen Therapeutics, Inc.*................... 620 4,204 Osiris Therapeutics, Inc.*................... 390 2,913 OXiGENE, Inc.*............. 860 920 PDL BioPharma, Inc. ....... 2,799 16,290 Pharmasset, Inc.*.......... 530 17,172 Poniard Pharmaceuticals, Inc.*................... 650 832 Progenics Pharmaceuticals, Inc.*................... 630 4,057 Protalix BioTherapeutics, Inc.*................... 859 5,815 Regeneron Pharmaceuticals, Inc.*................... 1,479 37,759 Repligen Corp.*............ 720 2,527 Rigel Pharmaceuticals, Inc.*................... 1,169 9,083 Sangamo Biosciences, Inc.*................... 1,039 6,400 Savient Pharmaceuticals, Inc.*................... 1,559 22,606 SciClone Pharmaceuticals, Inc.*................... 840 3,511 Seattle Genetics, Inc.*.... 1,949 24,557 SIGA Technologies, Inc.*... 710 4,878 Spectrum Pharmaceuticals, Inc.*................... 1,010 5,212 StemCells, Inc.*........... 2,769 3,184 Synta Pharmaceuticals Corp.*.................. 459 1,864 Theravance, Inc.*.......... 1,634 27,402 Vanda Pharmaceuticals, Inc.*................... 620 5,189 Vical, Inc.*............... 1,078 3,902 Zymogenetics, Inc.*........ 1,089 6,469 ----------- TOTAL BIOTECHNOLOGY 965,801 ----------- BUILDING PRODUCTS 0.5% AAON, Inc. ................ 290 7,001 American Woodmark Corp. ... 240 5,546 Ameron International Corp. .................. 220 15,266 Apogee Enterprises, Inc. .. 650 8,931 Builders FirstSource, Inc.*................... 990 3,772 Gibraltar Industries, Inc.*................... 630 9,462 Griffon Corp.*............. 1,019 14,368 Insteel Industries, Inc. .. 410 5,027 NCI Building Systems, Inc.*................... 420 5,788 Quanex Building Products Corp. .................. 880 16,720 Simpson Manufacturing Co., Inc. ................... 890 30,251 Trex Co., Inc.*............ 360 8,816 Universal Forest Products, Inc. ................... 450 18,922 ----------- TOTAL BUILDING PRODUCTS 149,870 ----------- CAPITAL MARKETS 2.2% American Capital, Ltd.*.... 6,557 40,260 Apollo Investment Corp. ... 4,129 50,209 Ares Capital Corp. ........ 4,429 70,244 Artio Global Investors, Inc. ................... 650 14,872 BGC Partners, Inc. -- Class A................. 1,089 7,100 BlackRock Kelso Capital Corp. .................. 290 3,077 Broadpoint Gleacher Securities, Inc.*....... 1,289 5,517 Calamos Asset Management, Inc. -- Class A......... 460 5,727 Capital Southwest Corp. ... 70 6,583 Cohen & Steers, Inc. ...... 400 10,828 Cowen Group, Inc. -- Class A*................ 500 2,700 Diamond Hill Investment Group, Inc. ............ 60 4,682 Duff & Phelps Corp. -- Class A........ 380 5,966 E*TRADE Financial Corp.*... 36,892 61,979 Epoch Holding Corp. ....... 300 3,876 Evercore Partners, Inc. -- Class A......... 340 12,186 FBR Capital Markets Corp.*.................. 420 1,987 Fifth Street Finance Corp. .................. 910 11,602 GAMCO Investors, Inc. -- Class A......... 170 7,822 GFI Group, Inc. ........... 1,519 10,481 Gladstone Capital Corp. ... 490 6,576 Gladstone Invt Corp. ...... 520 3,385 Harris & Harris Group, Inc.*................... 720 3,492 Hercules Technology Growth Capital, Inc. .......... 830 8,997 International Assets Holding Corp.*.......... 300 4,851 JMP Group, Inc. ........... 340 2,632 Kayne Anderson Energy Development Co. ........ 240 3,881 KBW, Inc.*................. 820 24,559 Knight Capital Group, Inc. -- Class A*........ 2,179 33,883 Kohlberg Capital Corp. .... 430 2,430 LaBranche & Co., Inc.*..... 1,170 5,780 Main Street Capital Corp. .................. 230 3,643 MCG Capital Corp.*......... 1,529 10,137 MF Global Holdings Ltd.*... 2,269 20,920 MVC Capital, Inc. ......... 510 7,206 NGP Capital Resources Co. .................... 510 3,901 Oppenheimer Holdings, Inc. ................... 220 6,395 optionsXpress Holdings, Inc.*................... 990 17,572 PennantPark Investment Corp. .................. 590 6,455 Penson Worldwide, Inc.*.... 460 4,324 Piper Jaffray Cos., Inc.*.. 460 18,106 Prospect Capital Corp. .... 1,525 17,736 Pzena Investment Management, Inc. -- Class A*........ 180 1,386 Riskmetrics Group, Inc.*... 520 11,669 Safeguard Scientifics, Inc.*................... 480 6,605 Sanders Morris Harris Group, Inc. ............ 479 2,860 Solar Capital Ltd.*........ 130 3,028 Stifel Financial Corp.*.... 700 40,131 SWS Group, Inc. ........... 650 7,195 Teton Advisors, Inc.(d).... 2 -- Thomas Weisel Partners Group, Inc.*............ 490 3,847 TICC Capital Corp. ........ 620 4,414 TradeStation Group, Inc.*.. 780 6,521 Triangle Capital Corp. .... 250 3,765 U.S. Global Investors, Inc. -- Class A......... 300 2,712
See Notes to Financial Statements. 30 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Virtus Investment Partners, Inc.*................... 140 $3,392 Westwood Holdings Group, Inc. ................... 130 5,005 ----------- TOTAL CAPITAL MARKETS 657,089 ----------- CHEMICALS 1.9% A. Schulman, Inc. ......... 550 14,305 American Vanguard Corp. ... 460 3,726 Ampal-American Israel Corp -- Class A*........ 490 1,107 Arch Chemicals, Inc. ...... 590 20,066 Balchem Corp. ............. 640 16,602 Calgon Carbon Corp.*....... 1,279 19,824 China Green Agriculture, Inc.*................... 250 3,170 Ferro Corp.*............... 2,019 22,047 H.B. Fuller Co. ........... 1,139 26,710 Hawkins, Inc. ............. 200 5,364 ICO, Inc. ................. 650 5,571 Innophos Holdings, Inc. ... 400 11,396 Innospec, Inc.*............ 550 7,321 Koppers Holdings, Inc. .... 480 13,522 Kraton Performance Polymers, Inc.*......... 260 4,930 Landec Corp.*.............. 620 3,801 LSB Industries, Inc.*...... 400 7,104 Minerals Technologies, Inc. ................... 440 25,388 NewMarket Corp. ........... 240 26,400 NL Industries, Inc. ....... 160 1,358 Olin Corp. ................ 1,829 38,409 OM Group, Inc.*............ 720 27,180 Omnova Solutions, Inc.*.... 1,029 7,872 PolyOne Corp.*............. 2,169 24,531 Quaker Chemical Corp. ..... 260 8,182 Rockwood Holdings, Inc.*... 1,149 34,401 Sensient Technologies Corp. .................. 1,139 35,913 ShengdaTech, Inc.*......... 660 4,547 Solutia, Inc.*............. 2,789 49,086 Spartech Corp.*............ 720 10,253 Stepan Co. ................ 170 12,878 STR Holdings, Inc.*........ 290 6,687 Westlake Chemical Corp. ... 460 12,917 WR Grace & Co.*............ 1,689 48,795 Zep, Inc. ................. 510 9,404 Zoltek Cos., Inc.*......... 650 6,396 ----------- TOTAL CHEMICALS 577,163 ----------- COMMERCIAL BANKS 5.3% 1st Source Corp. .......... 350 6,695 Alliance Financial Corp. .. 100 2,997 American National Bankshares, Inc. ....... 140 3,039 Ameris Bancorp............. 330 3,676 Ames Natl Corp. ........... 150 2,870 Arrow Financial Corp. ..... 220 6,116 Auburn National Bancorporation, Inc. ... 50 1,002 Bancfirst Corp. ........... 150 6,621 Banco Latinoamericano de Comercio Exterior, S.A. -- Class E......... 640 9,062 Bancorp Rhode Island, Inc. ................... 90 2,580 Bancorp, Inc. (The)*....... 470 4,169 Bank of Kentucky Financial Corp. (The)............. 70 1,343 Bank of Marin Bancorp...... 120 4,022 Bank of the Ozarks, Inc. .. 310 11,926 Banner Corp. .............. 469 2,659 Bar Harbor Bankshares...... 90 2,646 Boston Private Financial Holdings, Inc. ......... 1,589 12,601 Bridge Bancorp, Inc. ...... 150 3,500 Bryn Mawr Bank Corp. ...... 160 2,939 Camden National Corp. ..... 180 6,431 Cape Bancorp, Inc.*........ 280 2,005 Capital City Bank Group, Inc. ................... 280 4,925 Cardinal Financial Corp. .. 660 7,227 Cathay General Bancorp..... 1,839 22,748 Center Bancorp, Inc. ...... 290 2,413 Centerstate Banks of Florida, Inc. .......... 440 5,293 Central Pacific Financial Corp.*.................. 710 1,548 Century Bancorp, Inc. -- Class A......... 80 1,548 Chemical Financial Corp. .. 500 11,850 Chicopee Bancorp, Inc.*.... 150 1,910 Citizens + Northn Corp. ... 280 3,632 Citizens Holding Co. ...... 90 2,273 Citizens Republic Bancorp, Inc.*................... 9,245 11,556 City Holding Co. .......... 370 12,965 CNB Financial Corp. ....... 200 3,100 CoBiz Financial, Inc. ..... 690 4,927 Columbia Banking System, Inc. ................... 660 14,837 Community Bank System, Inc. ................... 770 18,996 Community Trust Bancorp, Inc. ................... 350 10,507 CVB Financial Corp. ....... 1,989 21,899 Danvers Bancorp, Inc. ..... 510 8,338 Eagle Bancorp, Inc.*....... 350 4,410 East West Bancorp, Inc. ... 2,589 50,719 Enterprise Bancorp, Inc. .. 130 1,616 Enterprise Financial Services Corp. ......... 270 2,838 F.N.B. Corp. .............. 2,669 24,875 Farmers Capital Bank Corp. .................. 150 1,265 Financial Institutions, Inc. ................... 250 4,020 First Bancorp Inc/ME....... 200 3,178 First BanCorp. ............ 1,879 3,983 First Bancorp. ............ 350 5,709 First Busey Corp. ......... 1,129 5,701 First California Financial Group, Inc.*............ 317 1,046 First Commonwealth Financial Corp. ........ 1,989 13,028 First Community Bancshares, Inc. ................... 350 5,828 First Financial Bancorp.... 1,359 25,970 First Financial Bankshares, Inc. ................... 490 26,205 First Financial Corp. ..... 280 8,162 First Merchants Corp. ..... 490 4,283 First Midwest Bancorp, Inc. ................... 1,729 26,281 First of Long Island Corp. (The)................... 130 3,346 First South Bancorp, Inc. ................... 190 2,649 FirstMerit Corp. .......... 2,038 47,893 German American Bancorp, Inc. ................... 260 4,137 Glacier Bancorp, Inc. ..... 1,686 31,174 Great Southern Bancorp, Inc. ................... 240 5,854 Guaranty Bancorp*.......... 1,229 1,930 Hampton Roads Bankshares, Inc. ................... 430 1,243 Hancock Holding Co. ....... 660 26,981 Heartland Financial USA, Inc. ................... 310 5,924 Heritage Financial Corp.*.. 220 3,368 Home Bancorp, Inc.*........ 210 2,913 Home Bancshares, Inc. ..... 410 11,529 IBERIABANK Corp. .......... 628 38,710 Independent Bank Corp. .... 490 12,711 International Bancshares Corp. .................. 1,219 29,463 Investors Bancorp, Inc.*... 1,099 15,287 Lakeland Bancorp, Inc. .... 480 5,040 Lakeland Financial Corp. .. 370 7,718 MainSource Financial Group, Inc. ................... 470 3,802 MB Financial, Inc. ........ 1,179 28,885 Merchants Bancshares, Inc. ................... 110 2,562
See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Metro Bancorp, Inc.*....... 230 $3,121 Midsouth Bancorp, Inc. .... 150 2,408 Nara Bancorp, Inc.*........ 770 6,930 National Bankshares, Inc. ................... 160 4,334 National Penn Bancshares, Inc. ................... 2,959 21,660 NBT Bancorp, Inc. ......... 800 19,576 Northfield Bancorp, Inc. .. 450 6,642 Northrim BanCorp, Inc. .... 150 2,589 Norwood Financial Corp. ... 40 1,110 Ohio Valley Banc Corp. .... 90 1,876 Old National Bancorp....... 2,039 27,343 Old Point Financial Corp. .................. 50 726 Old Second Bancorp, Inc. .. 250 1,430 OmniAmerican Bancorp, Inc.*................... 280 3,304 Oriental Financial Group... 767 12,824 Orrstown Financial Services, Inc. ......... 150 3,837 Pacific Capital Bancorp*... 1,090 1,897 Pacific Continental Corp. .................. 430 4,984 PacWest Bancorp............ 620 14,886 Park National Corp. ....... 270 18,495 Peapack Gladstone Financial Corp. .................. 200 2,780 Penns Woods Bancorp, Inc. ................... 90 2,885 Peoples Bancorp, Inc. ..... 250 4,335 Peoples Financial Corp. ... 90 1,425 Pinnacle Financial Partners, Inc.*......... 770 11,766 Porter Bancorp, Inc. ...... 70 991 Premierwest Bancorp*....... 2,179 2,070 PrivateBancorp, Inc. ...... 1,239 17,742 Prosperity Bancshares, Inc. ................... 1,079 42,318 Renasant Corp. ............ 490 8,100 Republic Bancorp, Inc. -- Class A......... 220 5,313 Republic First Bancorp, Inc.*................... 170 634 S&T Bancorp, Inc. ......... 550 13,227 S.Y. Bancorp, Inc. ........ 270 6,410 Sandy Spring Bancorp, Inc. ................... 557 9,720 Santander BanCorp*......... 100 1,196 SCBT Financial Corp. ...... 300 11,937 Shore Bancshares, Inc. .... 200 2,818 Sierra Bancorp............. 210 2,621 Signature Bank*............ 950 38,361 Simmons First National Corp. -- Class A........ 390 10,951 Smithtown Bancorp, Inc. ... 340 1,581 South Financial Group, Inc. ................... 5,047 3,886 Southside Bancshares, Inc. ................... 320 6,906 Southwest Bancorp, Inc. ... 340 4,984 State Bancorp Inc/NY....... 380 3,762 StellarOne Corp. .......... 530 7,902 Sterling Bancorp........... 627 6,715 Sterling Bancshares, Inc. ................... 2,392 14,065 Sterling Financial Corp.*.. 1,229 1,070 Suffolk Bancorp............ 230 7,141 Sun Bancorp, Inc.*......... 320 1,728 Susquehanna Bancshares, Inc. ................... 3,025 32,972 SVB Financial Group*....... 960 47,261 Texas Capital Bancshares, Inc.*................... 830 16,517 Tompkins Financial Corp. .. 210 8,530 Tower Bancorp, Inc. ....... 110 2,831 TowneBank/Portsmouth VA.... 549 8,800 Trico Bancshares........... 330 6,283 Trustmark Corp. ........... 1,489 36,451 UMB Financial Corp. ....... 750 31,590 Umpqua Holdings Corp. ..... 2,239 33,451 Union First Market Bankshares Corp. ....... 607 10,185 United Bankshares, Inc. ... 899 26,107 United Community Banks, Inc.*................... 1,919 11,207 United Security Bancshares, Inc. ................... 140 2,174 Univest Corp. of Pennsylvania............ 390 7,632 Washington Banking Co. .... 360 5,180 Washington Trust Bancorp, Inc. ................... 330 5,976 Webster Financial Corp. ... 1,599 33,131 WesBanco, Inc. ............ 540 10,411 West Bancorporation, Inc.*................... 370 3,008 Westamerica Bancorp........ 680 39,964 Western Alliance Bancorp*.. 1,070 9,309 Wilber Corp. (The)......... 140 953 Wilshire Bancorp, Inc. .... 450 4,887 Wintrust Financial Corp. .. 708 26,408 Yadkin Valley Financial Corp. .................. 380 1,740 ----------- TOTAL COMMERCIAL BANKS 1,623,897 ----------- COMMERCIAL SERVICES & SUPPLIES 1.9% ABM Industries, Inc. ...... 1,079 23,188 ACCO Brands Corp.*......... 1,279 11,677 American Reprographics Co.*.................... 850 8,492 AMREP Corp.*............... 30 435 APAC Customer Services, Inc.*................... 600 3,450 ATC Technology Corp.*...... 460 9,402 Bowne & Co., Inc. ......... 900 10,062 Cenveo, Inc.*.............. 1,259 10,790 Clean Harbors, Inc.*....... 500 31,715 Consolidated Graphics, Inc.*................... 230 9,639 Cornell Cos., Inc.*........ 260 7,150 Courier Corp. ............. 240 4,126 Deluxe Corp. .............. 1,199 25,143 EnergySolutions, Inc. ..... 1,769 12,825 EnerNOC, Inc.*............. 330 9,596 Ennis, Inc. ............... 610 11,279 Fuel Tech, Inc.*........... 410 3,079 G&K Services, Inc. -- Class A................. 430 11,821 Geo Group, Inc.(The)*...... 1,199 25,395 Healthcare Services Group, Inc. ................... 950 20,415 Heritage-Crystal Clean, Inc.*................... 60 616 Herman Miller, Inc. ....... 1,259 26,716 HNI Corp. ................. 1,050 32,592 Innerworkings, Inc.*....... 580 3,468 Interface, Inc. -- Class A................. 1,139 14,898 Kimball International, Inc. -- Class B......... 750 6,030 Knoll, Inc. ............... 1,099 15,364 M&F Worldwide Corp.*....... 250 7,665 McGrath RentCorp........... 560 14,554 Metalico, Inc.*............ 780 5,148 Mine Safety Appliances Co. ......... 630 18,516 Mobile Mini, Inc.*......... 830 13,795 Multi-Color Corp. ......... 240 3,002 North American Galvanizing & Coating, Inc.*........ 300 2,250 Perma-Fix Environmental Services, Inc.*......... 1,269 2,716 Rollins, Inc. ............. 1,029 22,381 Schawk, Inc. .............. 350 6,633 Standard Parking Corp.*.... 180 3,040 Standard Register Co.(The)................ 410 2,112 Steelcase, Inc. -- Class A................. 1,669 13,702 SYKES Enterprises, Inc.*... 889 20,207 Team, Inc.*................ 440 7,656 Tetra Tech, Inc.*.......... 1,409 34,309 United Stationers, Inc.*... 560 34,283 US Ecology, Inc. .......... 430 6,708
See Notes to Financial Statements. 32 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Viad Corp. ................ 480 $11,232 Waste Services, Inc.*...... 420 4,721 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 583,993 ----------- COMMUNICATIONS EQUIPMENT 2.3% Acme Packet, Inc.*......... 910 23,787 ADC Telecommunications, Inc.*................... 2,259 18,095 Adtran, Inc. .............. 1,299 34,774 Anaren, Inc.*.............. 340 5,039 Arris Group, Inc.*......... 2,899 35,629 Aruba Networks, Inc.*...... 1,379 17,320 Aviat Networks, Inc.*...... 1,379 8,963 Bel Fuse, Inc. -- Class B.. 240 5,621 BigBand Networks, Inc.*.... 830 2,739 Black Box Corp. ........... 410 12,788 Blue Coat Systems, Inc.*... 979 31,847 Cogo Group, Inc.*.......... 540 3,802 Communications Systems, Inc. ................... 140 1,798 Comtech Telecommunications Corp.*.................. 660 20,618 DG FastChannel, Inc.*...... 490 17,238 Digi International, Inc.*.. 580 6,212 Emcore Corp.*.............. 1,759 $2,357 EMS Technologies, Inc.*.... 360 5,720 Emulex Corp.*.............. 1,939 22,783 Extreme Networks*.......... 2,079 6,923 Globecomm Systems, Inc.*... 490 3,817 Harmonic, Inc.*............ 2,239 15,315 Hughes Communications, Inc.*................... 210 5,859 Infinera Corp.*............ 1,969 18,016 InterDigital, Inc.*........ 1,020 28,223 Ixia*...................... 740 7,585 KVH Industries, Inc.*...... 330 4,973 Loral Space & Communications, Ltd.*... 250 10,765 NETGEAR, Inc.*............. 810 21,919 Network Equipment Technologies, Inc.*..... 680 3,488 Oplink Communications, Inc.*................... 480 7,253 Opnext, Inc.*.............. 650 1,528 Palm, Inc.*................ 3,878 22,492 Parkervision, Inc.*........ 860 1,625 PC-Tel, Inc.*.............. 440 2,864 Plantronics, Inc. ......... 1,149 38,147 Polycom, Inc.*............. 1,969 64,091 Powerwave Technologies, Inc.*................... 3,089 5,468 Riverbed Technology, Inc.*................... 1,279 39,636 SeaChange International, Inc.*................... 750 6,248 ShoreTel, Inc.*............ 1,039 6,805 Sonus Networks, Inc.*...... 4,828 12,505 Sycamore Networks, Inc. ... 450 8,905 Symmetricom, Inc.*......... 1,020 6,763 Tekelec*................... 1,559 28,265 Utstarcom, Inc.*........... 2,649 7,550 ViaSat, Inc.*.............. 710 25,169 ----------- TOTAL COMMUNICATIONS EQUIPMENT 689,327 ----------- COMPUTERS & PERIPHERALS 0.6% 3PAR, Inc.*................ 640 5,971 ActivIdentity Corp.*....... 1,070 3,135 Adaptec, Inc.*............. 2,859 8,835 Avid Technology, Inc.*..... 660 9,636 Compellent Technologies, Inc.*................... 390 4,902 Cray, Inc.*................ 800 5,408 Electronics for Imaging, Inc.*................... 1,039 13,351 Imation Corp.*............. 700 7,588 Immersion Corp.*........... 660 3,696 Intermec, Inc.*............ 1,449 16,620 Intevac, Inc.*............. 510 7,099 Isilon Systems, Inc.*...... 610 7,918 Netezza Corp.*............. 1,109 15,182 Novatel Wireless, Inc.*.... 710 4,864 Quantum Corp.*............. 4,928 14,291 Rimage Corp.*.............. 220 3,861 Silicon Graphics International Corp.*.... 700 6,923 STEC, Inc.*................ 580 8,056 Stratasys, Inc.*........... 470 11,205 Super Micro Computer, Inc.*................... 540 7,657 Synaptics, Inc.*........... 800 24,496 ----------- TOTAL COMPUTERS & PERIPHERALS 190,694 ----------- CONSTRUCTION & ENGINEERING 0.7% Argan, Inc.*............... 170 1,931 Comfort Systems USA, Inc. ................... 910 12,813 Dycom Industries, Inc.*.... 910 9,664 EMCOR Group, Inc.*......... 1,539 43,954 Furmanite Corp.*........... 860 4,386 Granite Construction, Inc. ................... 800 26,888 Great Lakes Dredge & Dock Corp. .................. 940 5,095 Insituform Technologies, Inc. -- Class A*........ 910 21,813 Integrated Electrical Services, Inc.*......... 130 810 Layne Christensen Co.*..... 460 12,595 MasTec, Inc.*.............. 1,219 15,250 Michael Baker Corp.*....... 180 6,361 MYR Group, Inc.*........... 400 7,172 Northwest Pipe Co.*........ 220 5,306 Orion Marine Group, Inc.*.. 630 11,945 Pike Electric Corp.*....... 390 4,192 Primoris Services Corp. ... 190 1,501 Sterling Construction Co, Inc.*................... 380 6,650 Tutor Perini Corp.*........ 600 14,562 ----------- TOTAL CONSTRUCTION & ENGINEERING 212,888 ----------- CONSTRUCTION MATERIALS 0.1% Headwaters, Inc.*.......... 1,409 8,454 Texas Industries, Inc. .... 550 20,812 U.S. Concrete, Inc.*....... 780 413 United States Lime & Minerals, Inc.*......... 40 1,630 ----------- TOTAL CONSTRUCTION MATERIALS 31,309 ----------- CONSUMER FINANCE 0.4% Advance America Cash Advance Centers, Inc. .. 1,079 6,172 Cardtronics, Inc.*......... 310 4,321 Cash America International, Inc. ................... 690 25,572 CompuCredit Holdings Corp. .................. 380 2,276 Credit Acceptance Corp.*... 140 6,314 Dollar Financial Corp.*.... 560 13,110 Ezcorp, Inc. -- Class A*... 1,059 21,932 First Cash Financial Services, Inc.*......... 540 11,912 First Marblehead Corp (The)*.................. 1,449 5,086 Nelnet, Inc. -- Class A.... 450 8,982 QC Holdings, Inc. ......... 80 415 Rewards Network, Inc. ..... 150 1,953 World Acceptance Corp.*.... 380 13,406 ----------- TOTAL CONSUMER FINANCE 121,451 ----------- CONTAINERS & PACKAGING 0.4% AEP Industries, Inc.*...... 130 3,592 Boise, Inc.*............... 690 4,754
See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Bway Holding Co.*.......... 180 $3,560 Graham Packaging Co, Inc.*................... 390 4,692 Graphic Packaging Holding Co.*............ 2,619 9,664 Myers Industries, Inc. .... 740 8,037 Rock-Tenn Co. -- Class A... 900 46,440 Silgan Holdings, Inc. ..... 630 38,008 ----------- TOTAL CONTAINERS & PACKAGING 118,747 ----------- DISTRIBUTORS 0.0%(A) Audiovox Corp. -- Class A*................ 400 3,724 Core-Mark Holding Co., Inc.*................... 230 7,020 ----------- TOTAL DISTRIBUTORS 10,744 ----------- DIVERSIFIED CONSUMER SERVICES 1.0% American Public Education, Inc.*................... 430 18,210 Bridgepoint Education, Inc.*................... 330 8,484 Capella Education Co.*..... 340 30,811 ChinaCast Education Corp.*.................. 800 5,384 Coinstar, Inc.*............ 710 31,496 Corinthian Colleges, Inc.*................... 1,879 29,350 CPI Corp. ................. 120 3,184 Grand Canyon Education, Inc.*................... 370 8,947 Jackson Hewitt Tax Service, Inc.*................... 670 1,132 K12, Inc.*................. 550 13,018 Learning Tree International, Inc.*.... 180 2,846 Lincoln Educational Services Corp.*......... 230 5,741 Mac-Gray Corp. ............ 270 3,145 Matthews International Corp. -- Class A........ 710 24,850 Nobel Learning Communities, Inc.*................... 100 695 Pre-Paid Legal Services, Inc.*................... 160 7,115 Princeton Review, Inc.*.... 340 1,064 Regis Corp. ............... 1,339 25,602 Sotheby's.................. 1,569 52,404 Steiner Leisure, Ltd.*..... 340 15,936 Stewart Enterprises, Inc. -- Class A......... 1,879 12,740 Universal Technical Institute, Inc.*........ 460 11,022 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 313,176 ----------- DIVERSIFIED FINANCIAL SERVICES 0.4% Asset Acceptance Capital Corp.*.................. 350 2,576 California First National Bancorp................. 40 523 Compass Diversified Holdings................ 560 8,131 Encore Capital Group, Inc.*................... 320 7,363 Life Partners Holdings, Inc. ................... 170 3,927 MarketAxess Holdings, Inc. ................... 740 11,633 Medallion Financial Corp. .................. 350 2,800 NewStar Financial, Inc.*... 650 4,979 PHH Corp.*................. 1,279 29,021 Pico Holdings, Inc.*....... 530 18,841 Portfolio Recovery Associates, Inc.*....... 400 26,588 Primus Guaranty, Ltd.*..... 410 1,849 Resource America, Inc. -- Class A......... 290 1,714 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 119,945 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.5% AboveNet, Inc.*............ 310 15,667 Alaska Communications Systems Group, Inc. .... 1,039 8,894 Atlantic Tele-Network, Inc. ................... 210 11,588 Cbeyond, Inc.*............. 569 8,751 Cincinnati Bell, Inc.*..... 4,758 16,034 Cogent Communications Group, Inc.*............ 1,039 10,608 Consolidated Communications Holdings, Inc. ......... 550 10,203 General Communication, Inc. -- Class A*........ 989 6,082 Global Crossing, Ltd.*..... 680 10,098 HickoryTech Corp. ......... 310 2,626 inContact, Inc.*........... 709 2,021 Iowa Telecommunications Services, Inc. ......... 770 12,967 Neutral Tandem, Inc.*...... 770 13,052 PAETEC Holding Corp.*...... 2,879 14,337 Premiere Global Services, Inc.*................... 1,419 13,296 SureWest Communications*... 330 2,838 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 159,062 ----------- ELECTRIC UTILITIES 0.9% Allete, Inc. .............. 690 25,164 Central Vermont Public Service Corp. .......... 270 5,889 Cleco Corp. ............... 1,419 38,881 El Paso Electric Co.*...... 1,050 22,312 Empire District Electric Co.(The)................ 900 17,559 IDACORP, Inc. ............. 1,109 40,013 MGE Energy, Inc. .......... 540 19,850 PNM Resources, Inc. ....... 2,029 27,574 Portland General Electric Co. .................... 1,759 34,969 UIL Holdings Corp. ........ 690 20,031 Unisource Energy Corp. .... 830 27,656 Unitil Corp. .............. 250 5,520 ----------- TOTAL ELECTRIC UTILITIES 285,418 ----------- ELECTRICAL EQUIPMENT 1.9% Acuity Brands, Inc. ....... 1,009 45,617 Advanced Battery Technologies, Inc.*..... 1,299 4,508 American Superconductor Corp.*.................. 1,019 29,734 AO Smith Corp. ............ 510 26,331 AZZ, Inc. ................. 280 11,374 Baldor Electric Co. ....... 1,089 41,828 Belden, Inc. .............. 1,089 29,904 Brady Corp. -- Class A..... 1,119 38,449 Broadwind Energy, Inc.*.... 810 3,208 Chase Corp. ............... 140 1,838 China BAK Battery, Inc.*... 970 1,950 Encore Wire Corp. ......... 430 9,550 Ener1, Inc.*............... 1,199 4,988 Energy Conversion Devices, Inc.*................... 1,070 7,618 EnerSys*................... 949 24,560 Evergreen Solar, Inc.*..... 4,398 4,926 Franklin Electric Co., Inc. ................... 540 18,895 FuelCell Energy, Inc.*..... 1,709 4,700 Fushi Copperweld, Inc.*.... 460 5,088 Generac Holdings, Inc.*.... 440 6,640 GrafTech International, Ltd.*................... 2,819 47,528 GT Solar International, Inc.*................... 740 4,314 Harbin Electric, Inc.*..... 370 8,107 II-VI, Inc.*............... 580 20,799 LaBarge, Inc.*............. 300 3,708 Lihua International, Inc.*................... 70 615 LSI Industries, Inc. ...... 440 3,093 Microvision, Inc.*......... 2,079 6,507 Orion Energy Systems, Inc.*................... 410 2,185 Polypore International, Inc.*................... 530 9,386 Powell Industries, Inc.*... 180 6,044 Power-One, Inc.*........... 1,799 14,140 PowerSecure International, Inc.*................... 400 4,504 Preformed Line Products Co. .................... 50 1,500 Regal-Beloit Corp. ........ 840 53,147
See Notes to Financial Statements. 34 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) SatCon Technology Corp.*... 1,649 $4,634 Ultralife Corp.*........... 280 1,173 Valence Technology, Inc.*.. 1,179 1,238 Vicor Corp.*............... 460 6,955 Woodward Governor Co. ..... 1,409 45,158 ----------- TOTAL ELECTRICAL EQUIPMENT 566,441 ----------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 1.7% Agilysys, Inc. ............ 360 3,906 Anixter International, Inc.*................... 700 36,680 Benchmark Electronics, Inc.*................... 1,529 33,088 Brightpoint, Inc.*......... 1,130 9,142 Checkpoint Systems, Inc.*.. 910 20,557 China Security & Surveillance Technology, Inc.*................... 1,029 6,123 Cogent, Inc.*.............. 1,000 10,350 Cognex Corp. .............. 930 19,446 Coherent, Inc.*............ 510 19,161 Comverge, Inc.*............ 500 5,670 CPI International, Inc.*... 170 2,283 CTS Corp. ................. 790 8,295 Daktronics, Inc. .......... 790 6,620 DDi Corp.*................. 340 2,910 DTS, Inc.*................. 410 13,628 Echelon Corp.*............. 760 7,182 Electro Rent Corp. ........ 420 6,002 Electro Scientific Industries, Inc.*....... 640 8,813 FARO Technologies, Inc.*... 390 9,832 ICx Technologies, Inc.*.... 270 1,903 Insight Enterprises, Inc.*................... 1,070 16,082 IPG Photonics Corp.*....... 540 9,455 L-1 Identity Solutions, Inc.*................... 1,749 15,164 Littelfuse, Inc.*.......... 510 21,537 Maxwell Technologies, Inc.*................... 530 7,648 Measurement Specialties, Inc.*................... 340 5,600 Mercury Computer Systems, Inc.*................... 530 6,816 Methode Electronics, Inc. ................... 889 9,868 MTS Systems Corp. ......... 390 11,649 Multi-Fineline Electronix, Inc.*................... 230 5,962 Newport Corp.*............. 850 10,055 OSI Systems, Inc.*......... 360 9,374 PAR Technology Corp.*...... 190 1,332 Park Electrochemical Corp. .................. 480 14,501 PC Connection, Inc.*....... 220 1,514 PC Mall, Inc.*............. 240 1,246 Plexus Corp.*.............. 920 34,086 Radisys Corp.*............. 550 5,384 RAE Systems, Inc.*......... 950 751 Rofin-Sinar Technologies, Inc.*................... 680 18,061 Rogers Corp.*.............. 370 12,384 Scansource, Inc.*.......... 620 17,273 Smart Modular Technologies WWH, Inc.*.............. 860 6,037 Spectrum Control, Inc.*.... 290 4,031 SYNNEX Corp.*.............. 450 12,339 Technitrol, Inc. .......... 960 5,184 TTM Technologies, Inc.*.... 1,010 10,969 Universal Display Corp.*... 690 9,211 X-Rite, Inc.*.............. 669 2,208 Zygo Corp.*................ 350 3,307 ----------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 520,619 ----------- ENERGY EQUIPMENT & SERVICES 1.4% Allis-Chalmers Energy, Inc.*................... 1,379 5,557 Basic Energy Services, Inc.*................... 530 5,411 Bolt Technology Corp.*..... 200 2,214 Boots & Coots, Inc.*....... 1,829 5,359 Bristow Group, Inc.*....... 840 32,516 Bronco Drilling Co., Inc.*................... 560 2,677 Cal Dive International, Inc.*................... 1,049 6,882 CARBO Ceramics, Inc. ...... 450 32,963 Complete Production Services, Inc.*......... 1,369 20,658 Dawson Geophysical Co.*.... 180 5,272 Dril-Quip, Inc.*........... 680 39,392 ENGlobal Corp.*............ 440 1,562 Geokinetics, Inc.*......... 229 2,002 Global Industries Ltd.*.... 2,339 15,671 Gulf Island Fabrication, Inc. ................... 290 6,951 GulfMark Offshore, Inc. -- Class A*........ 530 18,269 Hercules Offshore, Inc.*... 2,689 10,649 Hornbeck Offshore Services, Inc.*................... 540 13,214 ION Geophysical Corp.*..... 2,489 14,959 Key Energy Services, Inc.*................... 2,899 31,483 Lufkin Industries, Inc. ... 350 29,796 Matrix Service Co.*........ 610 6,484 Natural Gas Services Group, Inc.*................... 280 5,020 Newpark Resources, Inc.*... 2,079 13,888 OYO Geospace Corp.*........ 90 4,473 Parker Drilling Co.*....... 2,719 15,036 PHI, Inc.*................. 310 6,445 Pioneer Drilling Co.*...... 1,079 7,920 RPC, Inc. ................. 660 9,009 Sulphco, Inc.*............. 1,799 689 Superior Well Services, Inc.*................... 420 6,090 T-3 Energy Services, Inc.*................... 290 8,628 TETRA Technologies, Inc.*.. 1,759 21,618 TGC Industries, Inc.*...... 326 1,341 Union Drilling, Inc.*...... 230 1,525 Vantage Drilling Co.*...... 1,829 3,292 Willbros Group, Inc.*...... 929 11,659 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 426,574 ----------- FOOD & STAPLES RETAILING 0.7% Andersons, Inc.(The)....... 430 15,540 Arden Group, Inc. -- Class A................. 30 3,045 Casey's General Stores, Inc. ................... 1,189 45,931 Diedrich Coffee, Inc.*..... 70 2,433 Great Atlantic & Pacific Tea Co., Inc.*.......... 790 6,359 Ingles Markets, Inc. -- Class A......... 300 4,809 Nash Finch Co. ............ 300 10,506 Pantry, Inc.(The)*......... 530 8,385 Pricesmart, Inc. .......... 370 9,206 Ruddick Corp. ............. 1,009 35,658 Spartan Stores, Inc. ...... 520 7,847 Susser Holdings Corp.*..... 180 1,939 United Natural Foods, Inc.*................... 1,009 30,966 Village Super Market -- Class A....... 150 4,036 Weis Markets, Inc. ........ 260 9,693 Winn-Dixie Stores, Inc.*... 1,279 16,128 ----------- TOTAL FOOD & STAPLES RETAILING 212,481 ----------- FOOD PRODUCTS 1.1% AgFeed Industries, Inc.*... 709 3,049 Alico, Inc. ............... 80 2,134 American Dairy, Inc.*...... 230 4,370 American Italian Pasta Co. -- Class A*......... 490 19,223 B&G Foods, Inc. -- Class A................. 1,113 11,497
See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Cal-Maine Foods, Inc. ..... 320 $10,682 Calavo Growers, Inc. ...... 240 4,162 Chiquita Brands International, Inc.*.... 1,040 15,641 Darling International, Inc.*................... 1,929 18,306 Diamond Foods, Inc. ....... 508 21,697 Dole Food Co., Inc.*....... 840 9,509 Farmer Brothers Co. ....... 160 2,994 Fresh Del Monte Produce, Inc.*................... 960 20,035 Griffin Land & Nurseries, Inc. ................... 80 2,340 Hain Celestial Group, Inc.*................... 950 18,791 Harbinger Group, Inc.*..... 210 1,405 HQ Sustainable Maritime Industries, Inc.*....... 250 1,422 Imperial Sugar Co. ........ 290 4,649 J&J Snack Foods Corp. ..... 330 15,375 Lancaster Colony Corp. .... 450 24,736 Lance, Inc. ............... 650 15,067 Lifeway Foods, Inc.*....... 110 1,212 Omega Protein Corp.*....... 440 2,354 Overhill Farms, Inc.*...... 370 2,242 Sanderson Farms, Inc. ..... 480 27,201 Seneca Foods Corp. -- Class A*................ 220 7,225 Smart Balance, Inc.*....... 1,469 9,769 Synutra International, Inc.*................... 420 9,845 Tootsie Roll Industries, Inc. ................... 580 15,428 TreeHouse Foods, Inc.*..... 818 34,593 Zhongpin, Inc.*............ 560 7,101 ----------- TOTAL FOOD PRODUCTS 344,054 ----------- GAS UTILITIES 1.0% Chesapeake Utilities Corp. .................. 220 6,626 Laclede Group, Inc. ....... 520 17,722 New Jersey Resources Corp. .................. 989 37,315 Nicor, Inc. ............... 1,059 46,077 Northwest Natural Gas Co. .................... 620 29,382 Piedmont Natural Gas Co., Inc. ................... 1,719 47,273 South Jersey Industries, Inc. ................... 700 31,577 Southwest Gas Corp. ....... 1,049 32,624 WGL Holdings, Inc. ........ 1,179 42,137 ----------- TOTAL GAS UTILITIES 290,733 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 2.9% Abaxis, Inc.*.............. 510 13,214 Abiomed, Inc.*............. 720 6,941 Accuray, Inc.*............. 930 5,989 AGA Medical Holdings, Inc.*................... 320 5,146 Align Technology, Inc.*.... 1,369 23,246 Alphatec Holdings, Inc.*... 770 5,144 American Medical Systems Holdings, Inc.*......... 1,729 30,984 Analogic Corp. ............ 300 14,346 Angiodynamics, Inc.*....... 570 9,120 Atrion Corp. .............. 40 5,671 ATS Medical, Inc.*......... 1,208 4,820 Bovie Medical Corp.*....... 400 2,084 Cantel Medical Corp. ...... 290 5,788 Cardiac Science Corp.*..... 470 733 Cardiovascular Systems, Inc.*................... 220 1,102 Conceptus, Inc.*........... 720 13,637 CONMED Corp.*.............. 680 15,123 CryoLife, Inc.*............ 660 4,033 Cutera, Inc.*.............. 310 3,584 Cyberonics, Inc.*.......... 640 12,499 Cynosure, Inc. -- Class A*................ 230 2,898 Delcath Systems, Inc.*..... 760 11,643 DexCom, Inc.*.............. 1,238 13,556 Endologix, Inc.*........... 1,129 5,250 EnteroMedics, Inc.*........ 530 279 ev3, Inc.*................. 1,739 33,267 Exactech, Inc.*............ 190 3,887 Greatbatch, Inc.*.......... 540 12,064 Haemonetics Corp.*......... 600 34,716 Hansen Medical, Inc.*...... 590 1,499 HeartWare International, Inc.*................... 170 9,561 ICU Medical, Inc.*......... 280 9,971 Immucor, Inc.*............. 1,649 35,305 Insulet Corp.*............. 830 11,454 Integra LifeSciences Holdings Corp.*......... 440 19,989 Invacare Corp. ............ 680 17,972 IRIS International, Inc.*.. 420 4,801 Kensey Nash Corp.*......... 190 4,304 MAKO Surgical Corp.*....... 410 5,752 Masimo Corp. .............. 1,189 27,834 Medical Action Industries, Inc.*................... 330 3,917 Mela Sciences, Inc.*....... 520 3,702 Meridian Bioscience, Inc. ................... 950 18,991 Merit Medical Systems, Inc.*................... 650 10,511 Micrus Endovascular Corp.*.................. 370 7,430 Natus Medical, Inc.*....... 660 11,246 Neogen Corp.*.............. 460 12,093 NuVasive, Inc.*............ 909 37,814 NxStage Medical, Inc.*..... 540 6,869 OraSure Technologies, Inc.*................... 1,079 6,841 Orthofix International N.V.*................... 400 13,676 Orthovita, Inc.*........... 1,549 6,196 Palomar Medical Technologies, Inc.*..... 420 5,275 Quidel Corp.*.............. 600 8,844 Rochester Medical Corp.*... 230 2,758 Rockwell Medical Technologies, Inc.*..... 400 2,324 RTI Biologics, Inc.*....... 1,269 4,860 Sirona Dental Systems, Inc.*................... 400 16,676 Somanetics Corp.*.......... 280 5,664 SonoSite, Inc.*............ 390 13,073 Spectranetics Corp.*....... 750 5,115 Stereotaxis, Inc.*......... 720 3,420 STERIS Corp. .............. 1,369 45,560 SurModics, Inc.*........... 360 6,696 Symmetry Medical, Inc.*.... 840 9,710 Synovis Life Technologies, Inc.*................... 270 3,996 Thoratec Corp.*............ 1,319 58,814 TomoTherapy, Inc.*......... 1,079 4,197 TranS1, Inc.*.............. 310 1,001 Utah Medical Products, Inc. ................... 80 2,233 Vascular Solutions, Inc.*.. 380 3,762 Volcano Corp.*............. 1,129 27,119 West Pharmaceutical Services, Inc. ......... 770 32,225 Wright Medical Group, Inc.*................... 890 16,714 Young Innovations, Inc. ... 130 3,272 Zoll Medical Corp.*........ 490 14,970 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 886,770 ----------- HEALTH CARE PROVIDERS & SERVICES 3.0% Air Methods Corp.*......... 250 8,270 Alliance Imaging, Inc.*.... 620 3,323 Allied Healthcare International, Inc.*.... 1,050 2,951 Almost Family, Inc.*....... 190 8,048 Amedisys, Inc.*............ 640 36,851 America Service Group, Inc. ................... 190 3,222
See Notes to Financial Statements. 36 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) American Caresource Holdings, Inc.*......... 250 $510 American Dental Partners, Inc.*................... 360 4,637 AMERIGROUP Corp.*.......... 1,239 44,901 AMN Healthcare Services, Inc.*................... 760 6,946 Amsurg Corp.*.............. 720 14,918 Assisted Living Concepts, Inc.- Class A*.......... 240 8,424 Bio-Reference Labs, Inc.*.. 560 13,104 BioScrip, Inc.*............ 910 8,135 Capital Senior Living Corp.*.................. 530 2,788 CardioNet, Inc.*........... 560 5,387 Catalyst Health Solutions, Inc.*................... 860 36,387 Centene Corp.*............. 1,129 25,854 Chemed Corp. .............. 530 29,155 Chindex International, Inc.*................... 310 3,918 Clarient, Inc.*............ 759 2,292 Continucare Corp.*......... 690 2,312 Corvel Corp.*.............. 170 5,661 Cross Country Healthcare, Inc.*................... 720 7,214 Emergency Medical Services Corp. -- Class A*....... 680 35,959 Emeritus Corp.*............ 460 10,304 Ensign Group, Inc. ........ 260 4,514 Genoptix, Inc.*............ 390 15,089 Gentiva Health Services, Inc.*................... 680 19,502 Hanger Orthopedic Group, Inc.*................... 590 10,998 Health Grades, Inc.*....... 560 3,926 Healthsouth Corp.*......... 2,189 44,787 Healthspring, Inc.*........ 1,149 20,222 Healthways, Inc.*.......... 790 12,869 HMS Holdings Corp.*........ 610 32,635 inVentiv Health, Inc.*..... 780 17,963 IPC The Hospitalist Co., Inc.*................... 380 11,795 Kindred Healthcare, Inc.*.. 910 16,234 Landauer, Inc. ............ 220 14,993 LCA-Vision, Inc.*.......... 390 3,288 LHC Group, Inc.*........... 360 12,276 Magellan Health Services, Inc.*................... 830 35,034 MedCath Corp.*............. 370 3,678 Metropolitan Health Networks, Inc.*......... 830 2,565 Molina Healthcare, Inc.*... 310 9,043 MWI Veterinary Supply, Inc.*................... 250 10,488 National Healthcare Corp. .................. 190 6,718 National Research Corp. ... 40 1,036 Nighthawk Radiology Holdings, Inc.*......... 440 1,628 NovaMed, Inc.*............. 470 1,542 Odyssey HealthCare, Inc.*.. 770 16,039 Owens & Minor, Inc. ....... 1,459 45,886 PharMerica Corp.*.......... 710 13,703 Providence Service Corp.*.. 250 4,153 PSS World Medical, Inc.*... 1,389 32,544 Psychiatric Solutions, Inc.*................... 1,319 42,432 RadNet, Inc.*.............. 680 2,502 RehabCare Group, Inc.*..... 580 16,542 Res-Care, Inc.*............ 590 6,868 Select Medical Holdings Corp.*.................. 790 6,865 Skilled Healthcare Group, Inc. -- Class A*........ 460 3,077 Sun Healthcare Group, Inc.*................... 1,020 9,119 Sunrise Senior Living, Inc.*................... 1,168 6,494 Team Health Holdings, Inc.*................... 360 5,659 Triple-S Mgmt Corp. -- Class B*....... 480 8,736 Universal American Corp.*.. 630 9,671 US Physical Therapy, Inc.*................... 270 4,736 Virtual Radiologic Corp.*.. 150 1,875 WellCare Health Plans, Inc.*................... 990 28,344 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 909,539 ----------- HEALTH CARE TECHNOLOGY 0.5% athenahealth, Inc.*........ 790 22,926 Computer Programs & Systems, Inc. .......... 230 10,364 Eclipsys Corp.*............ 1,319 27,277 MedAssets, Inc.*........... 920 21,003 Medidata Solutions, Inc.*.. 170 2,494 MedQuist, Inc. ............ 210 1,955 Merge Healthcare, Inc.*.... 810 2,009 Omnicell, Inc.*............ 740 9,879 Phase Forward, Inc.*....... 980 16,474 Quality Systems, Inc. ..... 550 35,205 Transcend Services, Inc.*.. 180 2,677 Vital Images, Inc.*........ 340 5,365 ----------- TOTAL HEALTH CARE TECHNOLOGY 157,628 ----------- HOTELS, RESTAURANTS & LEISURE 2.2% AFC Enterprises, Inc.*..... 590 6,437 Ambassadors Group, Inc. ... 440 5,342 Ameristar Casinos, Inc. ... 600 11,298 Bally Technologies, Inc.*.. 1,279 58,987 Benihana, Inc. -- Class A*................ 310 2,111 Biglari Holdings, Inc.*.... 30 11,737 BJ's Restaurants, Inc.*.... 460 11,100 Bluegreen Corp.*........... 340 2,064 Bob Evans Farms, Inc. ..... 720 22,270 Buffalo Wild Wings, Inc.*.. 420 17,363 California Pizza Kitchen, Inc.*................... 450 9,225 Caribou Coffee Co., Inc.*.. 160 1,416 Carrols Restaurant Group, Inc.*................... 260 1,947 CEC Entertainment, Inc.*... 540 21,087 Cheesecake Factory, Inc.(The)*.............. 1,409 38,283 Churchill Downs, Inc. ..... 220 8,433 CKE Restaurants, Inc. ..... 1,139 14,055 Cracker Barrel Old Country Store, Inc. ............ 530 26,166 Denny's Corp.*............. 2,249 7,489 DineEquity, Inc.*.......... 410 16,863 Domino's Pizza, Inc.*...... 860 13,253 Dover Downs Gaming & Entertainment, Inc. .... 330 1,297 Einstein Noah Restaurant Group, Inc.*............ 110 1,428 Frisch's Restaurants, Inc. ................... 50 1,096 Gaylord Entertainment Co.*.................... 930 31,387 Great Wolf Resorts, Inc.*.. 650 2,087 Interval Leisure Group, Inc.*................... 930 13,755 Isle of Capri Casinos, Inc.*................... 360 3,920 Jack in the Box, Inc.*..... 1,339 31,493 Krispy Kreme Doughnuts, Inc.*................... 1,369 5,065 Lakes Entertainment, Inc.*................... 440 990 Landry's Restaurants, Inc.*................... 170 3,925 Life Time Fitness, Inc.*... 940 34,554 Luby's, Inc.*.............. 470 1,918 Marcus Corp. .............. 470 6,039 McCormick & Schmick's Seafood Restaurants, Inc.*................... 350 3,469 Monarch Casino & Resort, Inc.*................... 210 2,440 Morgans Hotel Group Co.*... 510 4,320 Multimedia Games, Inc.*.... 620 2,833 O'Charleys, Inc.*.......... 410 3,916 Orient-Express Hotels, Ltd. -- Class A*........ 2,119 28,924 P.F. Chang's China Bistro, Inc.*................... 560 24,438 Papa John's International, Inc.*................... 510 13,974
See Notes to Financial Statements. SEMI-ANNUAL REPORT 37 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Peet's Coffee & Tea, Inc.*................... 270 $10,697 Pinnacle Entertainment, Inc.*................... 1,409 19,064 Red Lion Hotels Corp.*..... 310 2,368 Red Robin Gourmet Burgers, Inc.*................... 360 8,788 Ruby Tuesday, Inc.*........ 1,519 16,998 Ruth's Hospitality Group Inc*.................... 710 3,855 Shuffle Master, Inc.*...... 1,259 12,086 Sonic Corp.*............... 1,419 16,616 Speedway Motorsports, Inc. ................... 310 5,038 Texas Roadhouse, Inc.*..... 1,169 17,278 Town Sports International Holdings, Inc.*......... 450 1,697 Universal Travel Group*.... 280 2,556 Vail Resorts, Inc.*........ 690 31,492 Youbet.com, Inc.*.......... 700 2,051 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 680,778 ----------- HOUSEHOLD DURABLES 1.2% American Greetings Corp. -- Class A........ 920 22,595 Beazer Homes USA, Inc.*.... 1,459 9,586 Blyth, Inc. ............... 140 8,069 Brookfield Homes Corp.*.... 240 2,690 Cavco Industries, Inc.*.... 150 5,875 CSS Industries, Inc. ...... 180 3,604 Ethan Allen Interiors, Inc. ................... 580 11,716 Furniture Brands International, Inc.*.... 970 8,032 Helen of Troy, Ltd.*....... 700 18,907 Hooker Furniture Corp. .... 250 3,940 Hovnanian Enterprises, Inc. -- Class A*........ 1,219 8,667 iRobot Corp.*.............. 460 9,283 La-Z-Boy, Inc.*............ 1,209 15,765 M/I Homes, Inc.*........... 430 6,708 Meritage Homes Corp.*...... 730 17,359 National Presto Industries, Inc. ................... 110 12,317 NIVS IntelliMedia Technology Group, Inc.*................... 190 610 Ryland Group, Inc. ........ 1,009 22,985 Sealy Corp.*............... 1,059 3,961 Skyline Corp. ............. 160 3,730 Standard Pacific Corp.*.... 2,487 15,942 Stanley Furniture Co., Inc.*................... 240 2,369 Tempur-Pedic International, Inc.*................... 1,759 59,278 Tupperware Brands Corp. ... 1,469 75,022 Universal Electronics, Inc.*................... 320 6,790 ----------- TOTAL HOUSEHOLD DURABLES 355,800 ----------- HOUSEHOLD PRODUCTS 0.1% Cellu Tissue Holdings, Inc.*................... 190 1,980 Central Garden & Pet Co. -- Class A*......... 1,379 14,245 Oil-Dri Corp. of America... 120 2,460 Orchids Paper Products Co.*.................... 130 1,925 WD-40 Co. ................. 390 13,740 ----------- TOTAL HOUSEHOLD PRODUCTS 34,350 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.0%(A) U S Geothermal, Inc.*...... 1,649 1,567 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1,567 ----------- INDUSTRIAL CONGLOMERATES 0.2% Otter Tail Corp. .......... 830 18,443 Raven Industries, Inc. .... 380 11,537 Seaboard Corp. ............ 10 14,600 Standex International Corp. .................. 290 6,922 Tredegar Corp. ............ 690 11,771 United Capital Corp.*...... 40 993 ----------- TOTAL INDUSTRIAL CONGLOMERATES 64,266 ----------- INSURANCE 2.5% Ambac Financial Group, Inc.*................... 6,737 10,173 American Equity Investment Life Holding Co. ....... 1,359 14,297 American Physicians Capital, Inc. .......... 200 6,688 American Physicians Service Group, Inc. ............ 150 3,507 American Safety Insurance Holdings, Ltd.*......... 200 3,236 Amerisafe, Inc.*........... 440 7,524 Amtrust Financial Services, Inc. ................... 530 7,224 Argo Group International Holdings, Ltd. ......... 720 23,753 Assured Guaranty, Ltd. .... 2,879 62,042 Baldwin & Lyons, Inc. -- Class B......... 190 4,767 Citizens, Inc.*............ 780 5,468 CNA Surety Corp.*.......... 390 6,540 Conseco, Inc.*............. 5,897 34,792 Crawford & Co. -- Class B*................ 490 2,205 Delphi Financial Group -- Class A........ 1,080 29,700 Donegal Group, Inc. -- Class A......... 270 3,896 Eastern Insurance Holdings, Inc. ................... 180 1,845 eHealth, Inc.*............. 550 7,540 EMC Insurance Group, Inc. ................... 110 2,669 Employers Holdings, Inc. .. 1,030 16,974 Enstar Group, Ltd.*........ 160 10,579 FBL Financial Group, Inc. -- Class A......... 300 7,752 First Acceptance Corp.*.... 390 776 First Mercury Financial Corp. .................. 330 4,326 Flagstone Reinsurance Holdings, Ltd. ......... 920 10,258 Fpic Insurance Group, Inc.*................... 250 6,805 Greenlight Capital Re, Ltd.*................... 660 16,909 Hallmark Financial Services*............... 220 2,576 Harleysville Group, Inc. .. 310 9,926 Hilltop Holdings, Inc.*.... 930 10,909 Horace Mann Educators Corp. .................. 920 15,833 Independence Holding Co. .. 150 1,202 Infinity Property & Casualty Corp. ......... 320 14,762 Kansas City Life Insurance Co. .................... 100 3,400 Maiden Holdings, Ltd. ..... 1,169 8,756 Max Capital Group, Ltd. ... 1,079 24,062 Meadowbrook Insurance Group, Inc. ............ 1,349 10,657 Mercer Insurance Group, Inc. ................... 130 2,385 Montpelier Re Holdings, Ltd. ................... 1,810 30,046 National Financial Partners Corp.*.................. 960 14,774 National Interstate Corp. .................. 140 2,925 National Western Life Insurance Co. -- Class A................. 50 9,557 Navigators Group, Inc.*.... 290 11,638 NYMAGIC, Inc. ............. 110 2,442 Phoenix Cos., Inc.*........ 2,709 8,750 Platinum Underwriters Holdings, Ltd. ......... 1,199 44,615 PMA Capital Corp. -- Class A*................ 760 5,221 Presidential Life Corp. ... 490 5,772 ProAssurance Corp.*........ 780 47,541 RLI Corp. ................. 440 25,520 Safety Insurance Group, Inc. ................... 310 11,560 SeaBright Insurance Holdings, Inc. ......... 510 5,549 Selective Insurance Group, Inc. ................... 1,239 20,704 State Auto Financial Corp. .................. 340 6,083
See Notes to Financial Statements. 38 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Stewart Information Services Corp. ......... 400 $4,552 Tower Group, Inc. ......... 1,040 23,982 United America Indemnity, Ltd. -- Class A*........ 860 8,170 United Fire & Casualty Co. ........... 520 11,892 Universal Insurance Holdings, Inc. ......... 310 1,566 Zenith National Insurance Corp. .................. 879 33,244 ----------- TOTAL INSURANCE 752,816 ----------- INTERNET & CATALOG RETAIL 0.4% 1-800-FLOWERS.COM, Inc. -- Class A*........ 610 1,745 Blue Nile, Inc.*........... 300 16,197 Drugstore.Com*............. 2,157 7,895 Gaiam, Inc. -- Class A..... 380 3,443 HSN, Inc.*................. 930 28,021 NutriSystem, Inc. ......... 720 13,917 Orbitz Worldwide, Inc.*.... 850 5,601 Overstock.com, Inc.*....... 370 6,845 PetMed Express, Inc. ...... 550 12,177 Shutterfly, Inc.*.......... 490 11,530 Stamps.com, Inc.*.......... 250 2,650 US Auto Parts Network, Inc.*................... 230 2,162 Vitacost.com, Inc.*........ 260 2,264 ----------- TOTAL INTERNET & CATALOG RETAIL 114,447 ----------- INTERNET SOFTWARE & SERVICES 1.4% Ancestry.com, Inc.*........ 180 3,533 Archipelago Learning, Inc.*................... 170 2,465 Art Technology Group, Inc.*................... 3,658 15,656 comScore, Inc.*............ 510 9,256 Constant Contact, Inc.*.... 560 14,308 DealerTrack Holdings, Inc.*................... 880 13,420 Dice Holdings, Inc.*....... 370 3,208 Digital River, Inc.*....... 890 24,867 DivX, Inc.*................ 760 6,354 EarthLink, Inc. ........... 2,479 22,361 GSI Commerce, Inc.*........ 710 19,347 Imergent, Inc. ............ 180 1,139 InfoSpace, Inc.*........... 820 8,585 Innodata Isogen, Inc.*..... 500 1,730 Internap Network Services Corp.*.................. 1,189 6,872 Internet Brands, Inc. -- Class A*........ 640 6,624 Internet Capital Group, Inc.*................... 860 8,505 iPass, Inc.*............... 1,179 1,698 j2 Global Communications, Inc.*................... 1,049 25,260 Keynote Systems, Inc. ..... 290 3,184 Knot, Inc.(The)*........... 700 5,677 Limelight Networks, Inc.*.. 770 3,095 Liquidity Services, Inc.*.. 350 3,980 LivePerson, Inc.*.......... 969 8,004 LogMeIn, Inc.*............. 170 3,976 LoopNet, Inc.*............. 470 5,302 Marchex, Inc. -- Class B... 460 2,420 MercadoLibre, Inc.*........ 610 30,756 ModusLink Global Solutions, Inc.*................... 1,069 9,546 Move, Inc.*................ 3,618 7,960 NIC, Inc. ................. 1,179 8,312 OpenTable, Inc.*........... 70 2,720 Openwave Systems, Inc.*.... 1,949 4,346 Perficient, Inc.*.......... 650 8,106 QuinStreet, Inc.*.......... 230 3,885 Rackspace Hosting, Inc.*... 1,559 27,984 RealNetworks, Inc.*........ 1,939 8,047 Saba Software, Inc.*....... 580 2,958 SAVVIS, Inc.*.............. 850 14,960 support.com, Inc.*......... 1,089 4,748 Switch & Data Facilities Co., Inc.*.............. 480 9,211 TechTarget, Inc.*.......... 270 1,310 Terremark Worldwide, Inc.*................... 1,359 9,744 Travelzoo, Inc.*........... 130 2,592 United Online, Inc. ....... 1,959 15,613 ValueClick, Inc.*.......... 2,039 20,961 Vocus, Inc.*............... 390 6,650 Web.com Group, Inc.*....... 620 2,995 Zix Corp.*................. 1,479 3,638 ----------- TOTAL INTERNET SOFTWARE & SERVICES 437,868 ----------- IT SERVICES 1.7% Acxiom Corp.*.............. 1,589 30,318 CACI International, Inc. -- Class A*........ 700 33,201 Cass Information Systems, Inc. ................... 190 6,042 China Information Security Technology, Inc*........ 669 4,041 Ciber, Inc.*............... 1,609 6,388 Computer Task Group, Inc.*................... 350 3,287 CSG Systems International, Inc.*................... 820 18,630 Cybersource Corp.*......... 1,619 41,576 Echo Global Logistics, Inc.*................... 130 1,754 eLoyalty Corp.*............ 150 1,050 Euronet Worldwide, Inc.*... 1,139 18,144 ExlService Holdings, Inc.*................... 350 5,572 Forrester Research, Inc.*.. 370 11,881 Gartner, Inc.*............. 1,579 38,022 Global Cash Access Holdings, Inc.*......... 880 7,638 Hackett Group Inc (The)*... 969 2,723 Heartland Payment Systems, Inc. ................... 880 16,174 iGate Corp. ............... 530 6,561 infoGROUP, Inc.*........... 800 6,408 Information Services Group, Inc.*................... 560 1,926 Integral Systems, Inc.*.... 410 3,575 Lionbridge Technologies, Inc.*................... 1,349 7,298 Mantech International Corp. -- Class A*....... 510 22,965 MAXIMUS, Inc. ............. 410 25,383 MoneyGram International, Inc.*................... 1,929 5,884 NCI, Inc. -- Class A*...... 150 4,262 Ness Technologies, Inc.*... 910 5,888 Online Resources Corp.*.... 600 2,796 RightNow Technologies, Inc.*................... 510 8,364 Sapient Corp. ............. 1,979 20,245 SRA International, Inc. -- Class A*........ 979 22,595 StarTek, Inc.*............. 280 1,898 Syntel, Inc. .............. 300 10,836 TeleTech Holdings, Inc.*... 760 12,578 Tier Technologies, Inc.*... 380 3,181 TNS, Inc.*................. 590 15,311 Unisys Corp.*.............. 990 27,740 VeriFone Holdings, Inc.*... 1,689 32,142 Virtusa Corp.*............. 310 3,190 Wright Express Corp.*...... 900 30,573 ----------- TOTAL IT SERVICES 528,040 ----------- LEISURE EQUIPMENT & PRODUCTS 0.7% Brunswick Corp. ........... 2,069 43,242 Callaway Golf Co. ......... 1,509 14,170 Eastman Kodak Co.*......... 6,287 38,476 JAKKS Pacific, Inc.*....... 650 9,939 Leapfrog Enterprises, Inc.*................... 800 5,472
See Notes to Financial Statements. SEMI-ANNUAL REPORT 39 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Marine Products Corp.*..... 230 $1,633 Polaris Industries, Inc. .. 720 42,602 Pool Corp. ................ 1,129 27,694 RC2 Corp.*................. 500 9,185 Smith & Wesson Holding Corp.*.................. 1,389 6,181 Sport Supply Group, Inc. .. 220 2,950 Steinway Musical Instruments*............ 160 3,066 Sturm Ruger & Co., Inc. ... 450 7,511 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 212,121 ----------- LIFE SCIENCES TOOLS & SERVICES 0.6% Accelrys, Inc.*............ 640 4,474 Affymetrix, Inc.*.......... 1,659 11,513 Albany Molecular Research, Inc.*................... 550 4,400 BioDelivery Sciences International, Inc.*.... 240 833 Bruker Corp.*.............. 1,149 17,568 Cambrex Corp.*............. 690 3,029 Dionex Corp.*.............. 410 33,444 Enzo Biochem, Inc.*........ 770 4,597 eResearchTechnology, Inc.*................... 999 7,363 Harvard Bioscience, Inc.*.. 580 2,424 Kendle International, Inc.*................... 350 5,793 Luminex Corp.*............. 970 15,772 Parexel International Corp.*.................. 1,349 31,809 Sequenom, Inc.*............ 1,429 8,860 Varian, Inc.*.............. 680 35,217 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 187,096 ----------- MACHINERY 2.3% 3D Systems Corp.*.......... 420 6,535 Actuant Corp. -- Class A... 1,589 36,436 Alamo Group, Inc. ......... 180 4,241 Albany International Corp. -- Class A........ 630 16,046 Altra Holdings, Inc.*...... 630 9,551 American Railcar Industries, Inc. ....... 220 3,597 Ampco-Pittsburgh Corp. .... 200 5,142 Astec Industries, Inc.*.... 420 13,910 Badger Meter, Inc. ........ 350 14,476 Barnes Group, Inc. ........ 1,089 22,651 Blount International, Inc.*................... 900 10,098 Briggs & Stratton Corp. ... 1,169 27,752 Cascade Corp. ............. 210 7,321 Chart Industries, Inc.*.... 670 15,403 China Fire & Security Group, Inc.*............ 330 4,514 CIRCOR International, Inc. ................... 400 13,784 CLARCOR, Inc. ............. 1,189 44,968 Colfax Corp.*.............. 560 7,308 Columbus McKinnon Corp.*... 450 8,114 Duoyuan Printing, Inc.*.... 190 1,645 Dynamic Materials Corp. ... 300 5,388 Eastern Co. (The).......... 140 2,275 Energy Recovery, Inc.*..... 790 4,764 EnPro Industries, Inc.*.... 470 14,843 ESCO Technologies, Inc. ... 610 18,818 Federal Signal Corp. ...... 1,139 9,180 Flow International Corp.*.. 1,069 3,378 Force Protection, Inc.*.... 1,639 8,769 FreightCar America, Inc. .. 280 8,014 Gorman-Rupp Co. ........... 340 9,483 Graham Corp. .............. 240 4,284 Greenbrier Cos., Inc.*..... 390 6,349 Hurco Cos., Inc.*.......... 150 2,919 John Bean Technologies Corp. .................. 650 11,940 Kadant, Inc.*.............. 290 5,803 Kaydon Corp. .............. 780 32,471 LB Foster Co. -- Class A*.. 240 7,104 Lindsay Corp. ............. 290 11,029 Met-Pro Corp. ............. 340 3,458 Middleby Corp.*............ 380 23,226 Miller Industries, Inc. ... 240 3,432 Mueller Industries, Inc. .. 870 25,795 Mueller Water Products, Inc. -- Class A......... 3,608 20,205 NACCO Industries, Inc. -- Class A......... 130 11,302 Nordson Corp. ............. 790 56,738 Omega Flex, Inc. .......... 60 734 PMFG, Inc.*................ 349 5,019 Portec Rail Products, Inc. ................... 160 1,891 RBC Bearings, Inc.*........ 510 16,096 Robbins & Myers, Inc. ..... 620 16,064 Sauer-Danfoss, Inc.*....... 260 4,225 SmartHeat, Inc.*........... 210 1,762 Sun Hydraulics Corp. ...... 290 8,123 Tecumseh Products Co. -- Class A*......... 430 5,495 Tennant Co. ............... 440 15,176 Titan International, Inc. ................... 830 10,300 Trimas Corp.*.............. 360 3,661 Twin Disc, Inc. ........... 200 2,824 Watts Water Technologies, Inc. -- Class A......... 690 24,481 ----------- TOTAL MACHINERY 700,310 ----------- MARINE 0.1% American Commercial Lines, Inc.*................... 210 4,284 Eagle Bulk Shipping, Inc.*................... 1,449 8,390 Genco Shipping & Trading, Ltd.*................... 600 13,896 Horizon Lines, Inc. -- Class A......... 710 3,884 International Shipholding Corp. .................. 130 3,944 Ultrapetrol Bahamas, Ltd.*................... 510 3,121 ----------- TOTAL MARINE 37,519 ----------- MEDIA 1.0% Arbitron, Inc. ............ 620 19,102 Ascent Media Corp. -- Series A*...... 330 9,742 Belo Corp. -- Class A...... 2,089 18,112 Carmike Cinemas, Inc.*..... 260 4,363 Cinemark Holdings, Inc. ... 760 13,878 CKX, Inc.*................. 1,359 7,991 Crown Media Holdings, Inc. -- Class A*........ 260 471 Dolan Media Co.*........... 700 8,323 E.W. Scripps Co. -- Class A*................ 709 7,756 Fisher Communications, Inc.*................... 140 2,106 Global Sources, Ltd.*...... 380 2,785 Harte-Hanks, Inc. ......... 890 12,816 Journal Communications, Inc. -- Class A*........ 960 5,443 Knology, Inc.*............. 700 9,191 LIN TV Corp. -- Class A*... 630 4,555 Live Nation, Inc.*......... 3,258 51,118 LodgeNet Entertainment Corp.*.................. 529 3,491 Martha Stewart Living Omnimedia, Inc. -- Class A*................ 620 4,142 Mediacom Communications Corp. -- Class A*....... 920 6,090 National CineMedia, Inc. .. 989 18,831 Outdoor Channel Holdings, Inc.*................... 340 2,349 Playboy Enterprises, Inc. -- Class B*........ 500 2,090 Primedia, Inc. ............ 390 1,361 RCN Corp.*................. 850 12,478
See Notes to Financial Statements. 40 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Reading International, Inc. -- Class A*........ 410 $1,710 Rentrak Corp.*............. 220 4,814 Scholastic Corp. .......... 530 14,315 Sinclair Broadcast Group, Inc. -- Class A*........ 1,000 6,890 Valassis Communications, Inc.*................... 1,129 36,907 Value Line, Inc. .......... 30 651 World Wrestling Entertainment, Inc. -- Class A......... 510 9,307 ----------- TOTAL MEDIA 303,178 ----------- METALS & MINING 0.9% Allied Nevada Gold Corp.*.. 1,289 23,563 AM Castle & Co.*........... 390 5,351 AMCOL International Corp. .................. 550 15,807 Brush Engineered Materials, Inc.*................... 470 13,973 Century Aluminum Co.*...... 1,329 17,915 China Precision Stl, Inc.*................... 730 1,504 Coeur d'Alene Mines Corp.*.................. 1,909 34,209 General Moly, Inc.*........ 1,489 5,569 General Stl Hldgs, Inc.*... 480 1,790 Haynes International, Inc. ................... 280 10,055 Hecla Mining Co.*.......... 5,547 33,116 Horsehead Holding Corp.*... 1,019 12,106 Kaiser Aluminum Corp. ..... 360 14,468 Olympic Steel, Inc. ....... 210 6,674 Paramount Gold and Silver Corp.*.................. 1,829 3,475 RTI International Metals, Inc.*................... 700 18,935 Stillwater Mining Co.*..... 959 16,207 Sutor Technology Group Ltd.*................... 190 522 Universal Stainless & Alloy*.................. 160 3,733 US Gold Corp.*............. 1,869 6,373 Worthington Industries, Inc. ................... 1,409 22,502 ----------- TOTAL METALS & MINING 267,847 ----------- MULTI-UTILITIES 0.3% Avista Corp. .............. 1,279 27,665 Black Hills Corp. ......... 910 29,930 CH Energy Group, Inc. ..... 370 15,325 NorthWestern Corp. ........ 840 25,385 ----------- TOTAL MULTI-UTILITIES 98,305 ----------- MULTILINE RETAIL 0.3% 99 Cents Only Stores*...... 1,099 17,056 Dillard's, Inc. -- Class A................. 1,199 33,668 Fred's, Inc. -- Class A.... 940 13,057 Retail Ventures, Inc.*..... 580 6,276 Saks, Inc.*................ 2,958 28,840 Tuesday Morning Corp.*..... 700 3,955 ----------- TOTAL MULTILINE RETAIL 102,852 ----------- OIL, GAS & CONSUMABLE FUELS 2.8% Alon USA Energy, Inc. ..... 190 1,389 Apco Oil and Gas International, Inc. .... 210 5,867 Approach Resources, Inc.*.. 280 2,506 Arena Resources, Inc.*..... 899 33,200 Atlas Energy, Inc.*........ 1,579 56,970 ATP Oil & Gas Corp.*....... 930 16,982 Berry Petroleum Co. -- Class A.......... 1,189 38,488 Bill Barrett Corp.*........ 900 30,672 BPZ Resources, Inc.*....... 2,169 14,359 Brigham Exploration Co.*... 2,319 45,244 Carrizo Oil & Gas, Inc.*... 650 14,261 Cheniere Energy, Inc.*..... 1,319 5,474 Clayton Williams Energy, Inc.*................... 140 6,504 Clean Energy Fuels Corp.*.. 840 14,801 Cloud Peak Energy, Inc.*... 720 11,520 Contango Oil & Gas Co.*.... 280 15,372 CREDO Petroleum Corp.*..... 160 1,552 Crosstex Energy, Inc.*..... 950 8,579 Cubic Energy, Inc.*........ 630 655 CVR Energy, Inc.*.......... 540 4,585 Delek US Holdings, Inc. ... 300 2,103 Delta Petroleum Corp.*..... 4,168 6,419 DHT Maritime, Inc. ........ 1,159 5,470 Endeavour International Corp.*.................. 2,669 4,324 Evergreen Energy, Inc.*.... 3,058 676 FX Energy, Inc.*........... 999 4,306 General Maritime Corp. .... 1,139 9,237 Georesources, Inc.*........ 210 3,604 GMX Resources, Inc.*....... 730 5,847 Golar LNG, Ltd.*........... 760 9,872 Goodrich Petroleum Corp.*.. 570 9,650 Gran Tierra Energy, Inc.*.. 4,778 28,955 Green Plains Renewable Energy, Inc.*........... 269 3,693 Gulfport Energy Corp.*..... 620 7,750 Harvest Natural Resources, Inc.*................... 770 6,799 International Coal Group, Inc.*................... 2,784 14,672 Isramco, Inc.*............. 30 1,859 James River Coal Co.*...... 650 12,233 Knightsbridge Tankers, Ltd. ................... 400 7,576 McMoRan Exploration Co.*... 1,907 22,770 Nordic American Tanker Shipping, Ltd. ......... 1,099 34,333 Northern Oil And Gas, Inc.*................... 840 13,658 Oilsands Quest, Inc.*...... 5,474 4,841 Panhandle Oil and Gas, Inc. -- Class A......... 170 4,243 Patriot Coal Corp.*........ 1,729 34,044 Penn Virginia Corp. ....... 1,060 27,041 Petroleum Development Corp.*.................. 450 10,534 Petroquest Energy, Inc.*... 1,199 7,086 PrimeEnergy Corp.*......... 10 225 Rex Energy Corp.*.......... 710 9,443 Rosetta Resources, Inc.*... 1,229 30,602 Ship Finance International, Ltd. ................... 1,040 20,592 Stone Energy Corp.*........ 979 15,958 Swift Energy Co.*.......... 880 31,838 Syntroleum Corp.*.......... 1,479 3,343 Teekay Tankers, Ltd. ...... 250 3,185 Toreador Resources Corp.*.. 580 5,261 Uranerz Energy Corp.*...... 1,219 2,011 Uranium Energy Corp.*...... 1,319 3,772 USEC, Inc.*................ 2,629 15,774 Vaalco Energy, Inc.*....... 1,369 7,680 Venoco, Inc.*.............. 420 6,258 W&T Offshore, Inc. ........ 800 7,576 Warren Resources, Inc.*.... 1,659 5,939 Western Refining, Inc.*.... 950 5,092 Westmoreland Coal Co.*..... 240 3,374 World Fuel Services Corp. .................. 1,379 39,205 Zion Oil & Gas, Inc.*...... 340 2,173 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 851,876 ----------- PAPER & FOREST PRODUCTS 0.7% Buckeye Technologies, Inc.*................... 909 12,835 Clearwater Paper Corp.*.... 270 17,193 Deltic Timber Corp. ....... 250 13,155 Domtar Corp.*.............. 970 68,715 Glatfelter................. 1,069 15,704
See Notes to Financial Statements. SEMI-ANNUAL REPORT 41 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Kapstone Paper and Packaging Corp.*........ 770 $9,933 Louisiana-Pacific Corp.*... 2,939 34,563 Neenah Paper, Inc. ........ 340 5,950 Schweitzer-Mauduit International, Inc. .... 410 23,337 Wausau Paper Corp.*........ 1,019 9,018 ----------- TOTAL PAPER & FOREST PRODUCTS 210,403 ----------- PERSONAL PRODUCTS 0.3% American Oriental Bioengineering, Inc.*... 1,449 5,869 China Sky One Med, Inc.*... 240 3,401 China-Biotics, Inc.*....... 220 3,920 Elizabeth Arden, Inc.*..... 570 10,380 Female Health Co. (The).... 370 2,364 Inter Parfums, Inc. ....... 330 5,702 Mannatech, Inc. ........... 370 1,428 Medifast, Inc.*............ 300 9,576 Nu Skin Enterprises, Inc. -- Class A......... 1,159 34,840 Nutraceutical International Corp.*.................. 260 4,022 Prestige Brands Holdings, Inc.*................... 790 7,695 Revlon, Inc. -- Class A*... 460 8,059 Schiff Nutrition International, Inc. .... 260 1,843 USANA Health Sciences, Inc.*................... 150 5,438 ----------- TOTAL PERSONAL PRODUCTS 104,537 ----------- PHARMACEUTICALS 1.3% Acura Pharmaceuticals, Inc.*................... 190 699 Adolor Corp.*.............. 1,089 2,124 Akorn, Inc.*............... 1,319 2,770 Ardea Biosciences, Inc.*... 330 8,382 ARYx Therapeutics, Inc.*... 490 432 Auxilium Pharmaceuticals, Inc.*................... 1,080 38,448 AVANIR Pharmaceuticals, Inc. -- Class A*........ 1,509 4,859 Biodel, Inc.*.............. 360 1,620 BioMimetic Therapeutics, Inc.*................... 320 4,266 BMP Sunstone Corp.*........ 760 4,081 Cadence Pharmaceuticals, Inc.*................... 580 5,684 Caraco Pharmaceutical Laboratories, Ltd.*..... 240 1,548 Cornerstone Therapeutics, Inc.*................... 150 1,048 Cumberland Pharmaceuticals, Inc.*................... 190 2,023 Cypress Bioscience, Inc.*.. 890 4,486 Depomed, Inc.*............. 1,199 4,832 Discovery Laboratories, Inc.*................... 3,498 1,752 Durect Corp.*.............. 2,029 5,783 Hi-Tech Pharmacal Co., Inc.*................... 200 4,866 Impax Laboratories, Inc.*.. 1,419 25,684 Inspire Pharmaceuticals, Inc.*................... 1,439 9,857 Ista Pharmaceuticals, Inc.*................... 780 3,050 Javelin Pharmaceuticals, Inc.*................... 1,239 2,701 KV Pharmaceutical Co. -- Class A*......... 870 1,348 Lannett Co., Inc.*......... 240 1,126 MAP Pharmaceuticals, Inc.*................... 210 3,772 Matrixx Initiatives, Inc.*................... 220 1,126 Medicines Co.(The)*........ 1,239 9,094 Medicis Pharmaceutical Corp. -- Class A........ 1,379 34,999 MiddleBrook Pharmaceuticals, Inc.*.. 850 256 Nektar Therapeutics*....... 2,169 30,279 Obagi Medical Products, Inc.*................... 400 5,392 Optimer Pharmaceuticals, Inc.*................... 778 9,577 Pain Therapeutics, Inc.*... 810 4,860 Par Pharmaceutical Cos., Inc.*................... 820 22,255 Pozen, Inc.*............... 610 6,606 Questcor Pharmaceuticals, Inc.*................... 1,349 13,139 Repros Therapeutics, Inc.*................... 370 315 Salix Pharmaceuticals Ltd.*................... 1,299 52,220 Santarus, Inc.*............ 1,219 3,998 Sucampo Pharmaceuticals, Inc. -- Class A*........ 250 1,028 SuperGen, Inc.*............ 1,389 4,098 Viropharma, Inc.*.......... 1,809 23,010 Vivus, Inc.*............... 1,879 19,147 XenoPort, Inc.*............ 700 7,280 ----------- TOTAL PHARMACEUTICALS 395,920 ----------- PROFESSIONAL SERVICES 1.1% Acacia Research -- Acacia Technologies*........... 750 11,160 Administaff, Inc. ......... 490 10,849 Advisory Board Co.(The)*... 360 11,855 Barrett Business Services, Inc. ................... 180 2,772 CBIZ, Inc.*................ 1,029 7,213 CDI Corp. ................. 290 5,055 Corporate Executive Board Co.(The)................ 800 21,968 CoStar Group, Inc.*........ 470 20,656 CRA International, Inc.*... 260 6,040 Diamond Management & Technology Consultants, Inc. ................... 560 4,547 Exponent, Inc.*............ 320 9,539 Franklin Covey Co.*........ 300 2,364 GP Strategies Corp.*....... 370 2,986 Heidrick & Struggles International, Inc. .... 400 10,564 Hill International, Inc.*.. 580 3,724 Huron Consulting Group, Inc.*................... 500 11,710 ICF International, Inc.*... 260 6,022 Kelly Services, Inc. -- Class A*........ 610 9,809 Kforce, Inc.*.............. 670 9,306 Korn/Ferry International*.. 1,049 17,004 Mistras Group, Inc.*....... 230 2,698 Navigant Consulting, Inc.*................... 1,169 15,057 Odyssey Marine Exploration, Inc.*................... 1,489 1,995 On Assignment, Inc.*....... 850 5,975 Resources Connection, Inc.*................... 1,059 18,575 School Specialty, Inc.*.... 440 10,322 SFN Group, Inc.*........... 1,209 10,337 Towers Watson & Co. -- Class A.......... 999 47,952 TrueBlue, Inc.*............ 1,029 16,248 Volt Information Sciences, Inc.*................... 280 3,511 VSE Corp. ................. 100 4,019 ----------- TOTAL PROFESSIONAL SERVICES 321,832 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 5.5% Acadia Realty Trust........ 930 17,744 Agree Realty Corp. ........ 170 4,357 Alexander's, Inc.*......... 50 15,891 American Campus Communities, Inc. ...... 1,219 34,339 American Capital Agency Corp. .................. 380 10,454 Anworth Mortgage Asset Corp. .................. 2,659 17,842 Apollo Commercial Real Estate Finance, Inc. ... 230 4,142 Ashford Hospitality Trust, Inc.*................... 1,190 11,067 Associated Estates Realty Corp. .................. 460 6,454 BioMed Realty Trust, Inc. ................... 2,299 42,554 CapLease, Inc. ............ 1,209 7,048 Capstead Mortgage Corp. ... 1,619 18,327 CBL & Associates Properties, Inc. ....... 3,228 47,129 Cedar Shopping Centers, Inc. ................... 1,059 8,430 Chesapeake Lodging Trust*.. 180 3,379 Cogdell Spencer, Inc. ..... 700 5,306
See Notes to Financial Statements. 42 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Colonial Properties Trust.. 1,549 $24,428 Colony Financial, Inc. .... 340 6,463 Cousins Properties, Inc. .. 1,739 14,016 CreXus Investment Corp. ... 320 4,227 Cypress Sharpridge Investments, Inc. ...... 390 5,047 DCT Industrial Trust, Inc. ................... 4,788 25,185 Developers Diversified Realty Corp. ........... 4,808 59,090 DiamondRock Hospitality Co.*.................... 2,909 31,970 DuPont Fabros Technology, Inc. ................... 620 13,745 Dynex Capital, Inc. ....... 280 2,596 EastGroup Properties, Inc. ................... 629 25,714 Education Realty Trust, Inc. ................... 1,329 9,396 Entertainment Properties Trust................... 980 42,846 Equity Lifestyle Properties, Inc. ....... 590 32,751 Equity One, Inc. .......... 819 15,897 Extra Space Storage, Inc. ................... 2,029 30,476 FelCor Lodging Trust, Inc.*................... 1,519 12,319 First Industrial Realty Trust, Inc.*............ 1,239 9,887 First Potomac Realty Trust................... 887 14,387 Franklin Street Properties Corp. .................. 1,569 23,127 Getty Realty Corp. ........ 410 10,156 Gladstone Commercial Corp. .................. 200 3,240 Glimcher Realty Trust...... 1,449 9,868 Government Properties Income Trust............ 390 10,573 Gramercy Capital Corp.*.... 999 2,527 Hatteras Financial Corp. .. 850 22,669 Healthcare Realty Trust, Inc. ................... 1,389 33,530 Hersha Hospitality Trust... 2,831 16,335 Highwoods Properties, Inc. ................... 1,659 53,038 Home Properties, Inc. ..... 810 40,249 Inland Real Estate Corp. .. 1,649 15,534 Invesco Mortgage Capital... 390 8,053 Investors Real Estate Trust................... 1,709 14,920 iStar Financial, Inc.*..... 2,209 14,822 Kilroy Realty Corp. ....... 1,010 35,411 Kite Realty Group Trust.... 1,080 5,854 LaSalle Hotel Properties... 1,489 39,235 Lexington Realty Trust..... 2,279 16,135 LTC Properties, Inc. ...... 540 15,066 Medical Properties Trust, Inc. ................... 1,879 18,884 MFA Mortgage Investments, Inc. ................... 6,567 46,691 Mid-America Apartment Communities, Inc. ...... 660 36,478 Mission West Properties.... 410 2,968 Monmouth Real Estate Investment Corp. -- Class A........ 510 3,958 National Health Investors, Inc. ................... 610 24,778 National Retail Properties, Inc. ................... 1,869 43,978 NorthStar Realty Finance Corp. .................. 1,559 7,358 Omega Healthcare Investors, Inc. ................... 2,077 41,582 Parkway Properties, Inc. .. 510 10,047 Pebblebrook Hotel Trust*... 440 8,668 Pennsylvania Real Estate Investment Trust........ 900 14,211 Pennymac Mortgage Investment Trust*....... 340 5,923 Post Properties, Inc. ..... 1,139 29,341 Potlatch Corp. ............ 930 34,838 PS Business Parks, Inc. ... 420 25,200 RAIT Financial Trust*...... 1,739 7,060 Ramco-Gershenson Properties.............. 610 7,601 Redwood Trust, Inc. ....... 1,819 30,341 Resource Capital Corp. .... 759 5,396 Saul Centers, Inc. ........ 150 5,929 Sovran Self Storage, Inc. ................... 640 23,610 Starwood Property Trust, Inc. ................... 1,089 20,637 Strategic Hotels & Resorts, Inc.*................... 1,759 11,293 Sun Communities, Inc. ..... 390 11,279 Sunstone Hotel Investors, Inc.*................... 2,299 29,266 Tanger Factory Outlet Centers................. 940 39,104 Terreno Realty Corp.*...... 210 3,950 Transcontinental Realty Investors, Inc.*........ 30 309 U-Store-It Trust........... 1,869 16,111 UMH Properties, Inc. ...... 220 2,064 Universal Health Realty Income Trust............ 260 8,637 Urstadt Biddle Properties, Inc- Class A............ 480 8,093 Walter Investment Management Corp. ....... 540 9,790 Washington Real Estate Investment Trust........ 1,369 43,055 Winthrop Realty Trust...... 350 4,725 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,668,398 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1% American Realty Investors, Inc.*................... 60 509 Avatar Holdings, Inc.*..... 180 4,291 China Housing & Land Development, Inc.*...... 639 2,211 Consolidated-Tomoka Land Co. .................... 130 4,444 Forestar Real Estate Group, Inc.*................... 840 18,934 Tejon Ranch Co.*........... 250 7,190 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 37,579 ----------- ROAD & RAIL 0.9% Amerco, Inc.*.............. 210 13,115 Arkansas Best Corp. ....... 590 17,971 Avis Budget Group, Inc.*... 2,389 36,122 Celadon Group, Inc.*....... 520 7,764 Dollar Thrifty Automotive Group*.................. 670 29,473 Genesee & Wyoming, Inc. -- Class A*........ 870 34,017 Heartland Express, Inc. ... 1,179 19,501 Knight Transportation, Inc. ................... 1,339 28,507 Marten Transport, Ltd.*.... 360 7,866 Old Dominion Freight Line, Inc.*................... 650 23,322 Patriot Transportation Holding, Inc.*.......... 30 2,518 RailAmerica, Inc.*......... 520 6,703 Saia, Inc.*................ 369 6,114 Universal Truckload Services, Inc.*......... 140 2,556 USA Truck, Inc.*........... 180 3,316 Werner Enterprises, Inc. .. 999 22,398 YRC Worldwide, Inc.*....... 24,391 13,578 ----------- TOTAL ROAD & RAIL 274,841 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.0% Actel Corp.*............... 610 9,467 Advanced Analogic Technologies, Inc.*..... 1,009 3,834 Advanced Energy Industries, Inc.*................... 770 11,334 Amkor Technology, Inc.*.... 2,559 19,295 Anadigics, Inc.*........... 1,479 7,439 Applied Micro Circuits Corp.*.................. 1,539 17,360 Atheros Communications, Inc.*................... 1,579 61,328 ATMI, Inc.*................ 740 13,416 Brooks Automation, Inc.*... 1,509 14,667 Cabot Microelectronics Corp.*.................. 550 21,098 Cavium Networks, Inc.*..... 850 23,468 Ceva, Inc.*................ 489 5,985 Cirrus Logic, Inc.*........ 1,529 19,434 Cohu, Inc. ................ 550 8,882 Cymer, Inc.*............... 700 23,905 Diodes, Inc.*.............. 790 16,961 DSP Group, Inc.*........... 530 4,330
See Notes to Financial Statements. SEMI-ANNUAL REPORT 43 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Entegris, Inc.*............ 3,048 $18,867 Entropic Communications, Inc.*................... 1,239 6,542 Exar Corp.*................ 830 6,134 FEI Co.*................... 880 19,800 Formfactor, Inc.*.......... 1,159 17,397 GSI Technology, Inc.*...... 430 2,782 Hittite Microwave Corp.*... 500 25,640 IXYS Corp.*................ 560 5,057 Kopin Corp.*............... 1,579 6,648 Kulicke & Soffa Industries, Inc.*................... 1,599 13,112 Lattice Semiconductor Corp.*.................. 2,699 14,224 MEMSIC, Inc.*.............. 360 1,195 Micrel, Inc. .............. 1,060 12,370 Microsemi Corp.*........... 1,899 31,447 Microtune, Inc.*........... 1,219 3,267 MIPS Technologies, Inc.*... 1,059 5,284 MKS Instruments, Inc.*..... 1,159 26,286 Monolithic Power Systems, Inc.*................... 790 19,473 Netlogic Microsystems, Inc.*................... 1,099 34,256 NVE Corp.*................. 110 5,305 OmniVision Technologies, Inc.*................... 1,169 20,528 Pericom Semiconductor Corp.*.................. 590 6,891 Photronics, Inc.*.......... 1,239 6,753 PLX Technology, Inc.*...... 870 4,568 Power Integrations, Inc. .. 560 21,549 RF Micro Devices, Inc.*.... 6,227 34,996 Rubicon Technology, Inc.*.. 290 7,871 Rudolph Technologies, Inc.*................... 720 6,862 Semtech Corp.*............. 1,429 25,936 Sigma Designs, Inc.*....... 720 8,539 Silicon Image, Inc.*....... 1,749 6,506 Skyworks Solutions, Inc.*.. 3,928 66,148 Standard Microsystems Corp.*.................. 510 13,097 Supertex, Inc.*............ 260 7,023 Tessera Technologies, Inc.*................... 1,139 23,099 Trident Microsystems, Inc.*................... 1,479 2,559 TriQuint Semiconductor, Inc.*................... 3,448 25,998 Ultratech, Inc.*........... 550 8,080 Veeco Instruments, Inc.*... 900 39,591 Virage Logic Corp.*........ 380 3,526 Volterra Semiconductor Corp.*.................. 559 13,394 White Electronic Designs Corp.*.................. 540 3,780 Zoran Corp.*............... 1,209 11,764 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 926,347 ----------- SOFTWARE 3.5% ACI Worldwide, Inc.*....... 820 15,408 Actuate Corp.*............. 1,049 5,937 Advent Software, Inc.*..... 360 16,265 American Software, Inc. -- Class A......... 520 3,323 ArcSight, Inc.*............ 430 9,774 Ariba, Inc.*............... 2,049 29,239 AsiaInfo Holdings, Inc.*... 730 20,739 Blackbaud, Inc. ........... 1,029 23,719 Blackboard, Inc.*.......... 780 33,189 Bottomline Technologies, Inc.*................... 630 10,962 Callidus Software, Inc.*... 600 1,902 China TransInfo Technology Corp.*.................. 200 1,400 Commvault Systems, Inc.*... 979 20,510 Concur Technologies, Inc.*................... 930 38,976 Deltek, Inc.*.............. 430 3,384 DemandTec, Inc.*........... 470 3,177 Double-Take Software, Inc.*................... 400 4,300 Dynamics Research Corp.*... 200 2,860 Ebix, Inc.*................ 530 8,623 Epicor Software Corp.*..... 1,109 10,181 EPIQ Systems, Inc.*........ 760 9,158 ePlus, Inc.*............... 90 1,675 Fair Isaac Corp. .......... 1,149 24,198 FalconStor Software, Inc.*................... 810 2,422 Fortinet, Inc.*............ 290 5,156 GSE Systems, Inc.*......... 440 2,464 Informatica Corp.*......... 2,039 50,995 Interactive Intelligence, Inc.*................... 300 5,931 Jack Henry & Associates, Inc. ................... 1,959 49,994 JDA Software Group, Inc.*.. 780 22,542 Kenexa Corp.*.............. 530 7,955 Lawson Software, Inc.*..... 3,218 24,972 Manhattan Associates, Inc.*................... 540 15,476 Mentor Graphics Corp.*..... 2,485 22,340 MicroStrategy, Inc. -- Class A*........ 210 16,086 Monotype Imaging Holdings, Inc.*................... 510 5,324 Net 1 UEPS Technologies, Inc.*................... 730 11,972 Netscout Systems, Inc.*.... 580 8,422 NetSuite, Inc.*............ 390 5,495 Opnet Technologies, Inc. .. 310 4,979 Parametric Technology Corp.*.................. 2,719 50,546 Pegasystems, Inc. ......... 350 11,085 Pervasive Software, Inc.*.. 360 1,793 Phoenix Technologies Ltd.*................... 820 2,452 Progress Software Corp.*... 939 30,283 PROS Holdings, Inc.*....... 450 4,095 QAD, Inc.*................. 291 1,606 Quest Software, Inc.*...... 1,429 25,050 Radiant Systems, Inc.*..... 640 9,005 Renaissance Learning, Inc. ................... 150 2,132 Rosetta Stone, Inc.*....... 150 3,876 S1 Corp.*.................. 1,239 7,645 Smith Micro Software, Inc.*................... 670 6,358 Solarwinds, Inc.*.......... 280 5,197 Solera Holdings, Inc. ..... 1,629 63,319 SonicWALL, Inc.*........... 1,259 12,754 Sourcefire, Inc.*.......... 520 11,632 SRS Labs, Inc.*............ 270 2,527 SuccessFactors, Inc.*...... 1,080 22,604 Symyx Technologies*........ 800 4,360 Synchronoss Technologies, Inc.*................... 440 8,989 Take-Two Interactive Software, Inc.*......... 1,978 21,501 Taleo Corp. Class A*....... 920 23,902 TeleCommunication Systems, Inc. -- Class A*....... 1,028 7,104 THQ, Inc.*................. 1,579 12,000 TIBCO Software, Inc.*...... 3,898 44,437 Tivo, Inc.*................ 2,579 45,184 Tyler Technologies, Inc.*.. 730 12,439 Ultimate Software Group, Inc.*................... 570 19,067 Unica Corp.*............... 330 3,062 Vasco Data Security International, Inc.*.... 630 4,082 Websense, Inc.*............ 1,039 23,658 ----------- TOTAL SOFTWARE 1,065,168 ----------- SPECIALTY RETAIL 3.0% America's Car-Mart, Inc.*.. 230 5,826 AnnTaylor Stores Corp.*.... 1,369 29,707 Asbury Automotive Group, Inc.*................... 750 11,663 Bebe Stores, Inc. ......... 560 4,614 Big 5 Sporting Goods Corp. .................. 500 8,475
See Notes to Financial Statements. 44 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Books-A-Million, Inc. ..... 160 $1,184 Borders Group, Inc.*....... 1,149 2,918 Brown Shoe Co., Inc. ...... 970 18,236 Buckle, Inc.(The).......... 600 21,708 Build-A-Bear Workshop, Inc.*................... 390 3,728 Cabela's, Inc.*............ 939 17,052 Cato Corp. -- Class A...... 650 15,438 Charming Shoppes, Inc.*.... 2,709 15,306 Children's Place Retail Stores, Inc.(The)*...... 520 23,826 Christopher & Banks Corp. .................. 840 8,224 Citi Trends, Inc.*......... 340 11,404 Coldwater Creek, Inc.*..... 1,339 9,480 Collective Brands, Inc.*... 1,499 35,152 Conn's, Inc.*.............. 230 2,192 Destination Maternity Corp.*.................. 110 3,476 Dress Barn, Inc.(The)*..... 1,467 40,607 DSW, Inc. -- Class A*...... 280 8,456 Finish Line, Inc. -- Class A....................... 990 15,949 Genesco, Inc.*............. 530 17,644 Group 1 Automotive, Inc.*.. 560 17,388 Gymboree Corp.*............ 680 33,408 Haverty Furniture Cos., Inc. ................... 420 6,846 hhgregg, Inc.*............. 300 8,589 Hibbett Sports, Inc.*...... 670 18,425 Hot Topic, Inc. ........... 1,030 7,869 J. Crew Group, Inc.*....... 1,179 54,788 Jo-Ann Stores, Inc.*....... 620 27,354 Jos. A. Bank Clothiers, Inc.*................... 430 26,170 Kirkland's, Inc.*.......... 290 6,458 Lithia Motors, Inc. -- Class A*........ 480 3,830 Lumber Liquidators Holdings, Inc.*......... 340 10,356 Men's Wearhouse, Inc.(The)............... 1,219 28,805 Midas, Inc.*............... 330 3,798 Monro Muffler, Inc. ....... 390 13,985 New York & Co, Inc.*....... 590 3,623 OfficeMax, Inc.*........... 1,789 33,991 Pacific Sunwear of California, Inc.*....... 1,539 7,787 PEP Boys-Manny Moe & Jack.. 1,139 14,272 Pier 1 Imports, Inc.*...... 2,699 22,348 Rent-A-Center, Inc.*....... 1,549 39,995 Rex Stores Corp.*.......... 170 2,917 Rue21, Inc.*............... 160 5,056 Sally Beauty Holdings, Inc.*................... 2,199 21,000 Shoe Carnival, Inc.*....... 210 5,809 Sonic Automotive, Inc. -- Class A*........ 720 7,690 Stage Stores, Inc. ........ 890 13,573 Stein Mart, Inc.*.......... 600 5,688 Syms Corp.*................ 150 1,367 Systemax, Inc. ............ 240 5,575 Talbots, Inc.*............. 570 9,377 Tractor Supply Co. ........ 840 56,423 Ulta Salon Cosmetics & Fragrance, Inc.*........ 650 15,028 Vitamin Shoppe, Inc.*...... 210 5,212 West Marine, Inc.*......... 340 4,070 Wet Seal, Inc.(The) -- Class A*... 2,269 10,732 Zale Corp.*................ 560 1,826 Zumiez, Inc.*.............. 470 8,723 ----------- TOTAL SPECIALTY RETAIL 902,416 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.0% American Apparel, Inc.*.... 760 2,333 Carter's, Inc.*............ 1,329 42,820 Cherokee, Inc. ............ 180 3,679 Columbia Sportswear Co. ... 270 14,996 Crocs, Inc.*............... 1,959 18,924 Deckers Outdoor Corp.*..... 310 43,580 Fossil, Inc.*.............. 1,099 42,751 Fuqi Intl, Inc.*........... 290 3,048 G-III Apparel Group, Ltd.*................... 340 9,724 Iconix Brand Group, Inc.*.. 1,669 28,807 Jones Apparel Group, Inc. ................... 1,999 43,498 K-Swiss, Inc. -- Class A*.. 610 7,588 Kenneth Cole Productions, Inc. -- Class A*........ 180 2,243 Liz Claiborne, Inc.*....... 2,229 19,481 Lululemon Athletica, Inc.*................... 950 35,739 Maidenform Brands, Inc.*... 440 10,041 Movado Group, Inc.*........ 380 4,716 Oxford Industries, Inc. ... 290 6,261 Perry Ellis International, Inc.*................... 220 5,309 Quiksilver, Inc.*.......... 2,999 15,985 Skechers U.S.A., Inc. -- Class A*........ 780 29,913 Steven Madden, Ltd.*....... 370 21,445 Timberland Co. -- Class A*................ 1,020 21,930 True Religion Apparel, Inc.*................... 590 18,437 Under Armour, Inc. -- Class A*................ 780 26,325 Unifi, Inc.*............... 1,049 4,018 Unifirst Corp. ............ 330 16,127 Volcom, Inc.*.............. 440 10,490 Warnaco Group, Inc.*....... 1,070 51,189 Weyco Group, Inc. ......... 160 3,910 Wolverine World Wide, Inc. ................... 1,149 35,171 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 600,478 ----------- THRIFTS & MORTGAGE FINANCE 1.1% Abington Bancorp, Inc. .... 510 4,850 Astoria Financial Corp. ... 1,999 32,264 Bank Mutual Corp. ......... 1,099 7,825 BankFinancial Corp. ....... 500 4,830 Beneficial Mutual Bancorp, Inc.*................... 770 7,631 Berkshire Hills Bancorp, Inc. ................... 320 6,720 Brookline Bancorp, Inc. ... 1,379 15,155 Brooklyn Fed Bancorp, Inc. ................... 70 525 Cheviot Financial Corp. ... 70 629 Clifton Savings Bancorp, Inc. ................... 220 2,160 Dime Community Bancshares.. 610 7,777 Doral Financial Corp.*..... 150 809 ESB Financial Corp. ....... 220 3,146 ESSA Bancorp, Inc. ........ 360 4,547 First Defiance Financial Corp. .................. 190 2,565 First Financial Holdings, Inc. ................... 370 5,224 First Financial Northwest.. 400 2,580 First Financial Service Corp. .................. 90 764 Flagstar Bancorp, Inc.*.... 1,569 996 Flushing Financial Corp. .. 710 9,663 Fox Chase Bancorp, Inc.*... 130 1,459 Heritage Financial Group... 50 627 Home Federal Bancorp Inc/ID.................. 390 6,213 K-Fed Bancorp.............. 90 901 Kearny Financial Corp. .... 430 4,399 Kentucky First Federal Bancorp................. 70 694 Legacy Bancorp, Inc. ...... 170 1,593 Meridian Interstate Bancorp, Inc.*.......... 230 2,650 MGIC Investment Corp.*..... 2,929 30,549 NASB Financial, Inc. ...... 80 1,979 NewAlliance Bancshares, Inc. ................... 2,499 32,562 Northeast Community Bancorp, Inc. .......... 140 855 Northwest Bancshares, Inc. ................... 909 11,353 OceanFirst Financial Corp. .................. 310 3,987
See Notes to Financial Statements. SEMI-ANNUAL REPORT 45 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONCLUDED) Ocwen Financial Corp.*..... 1,339 $15,465 Oritani Financial Corp. ... 240 3,982 PMI Group, Inc.(The)*...... 1,709 8,904 Provident Financial Services, Inc. ......... 1,399 18,439 Provident New York Bancorp................. 810 8,319 Prudential Bancorp, Inc. of Pennsylvania............ 90 695 Radian Group, Inc. ........ 1,919 27,231 Rockville Financial, Inc. ................... 190 2,291 Roma Financial Corp. ...... 190 2,223 Territorial Bancorp, Inc. ................... 290 5,504 Tree.com, Inc.*............ 150 1,365 TrustCo Bank Corp. ........ 1,789 11,897 United Financial Bancorp, Inc. ................... 390 5,452 ViewPoint Financial Group.. 240 4,087 Waterstone Financial Inc.*................... 170 656 Westfield Financial, Inc. ................... 730 6,643 WSFS Financial Corp. ...... 170 7,159 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 350,793 ----------- TOBACCO 0.2% Alliance One International, Inc.*................... 2,089 10,633 Star Scientific, Inc.*..... 1,879 3,457 Universal Corp. ........... 590 30,550 Vector Group, Ltd. ........ 910 14,915 ----------- TOTAL TOBACCO 59,555 ----------- TRADING COMPANIES & DISTRIBUTORS 0.7% Aceto Corp. ............... 580 3,869 Aircastle Ltd. ............ 1,099 13,199 Applied Industrial Technologies, Inc. ..... 990 30,472 Beacon Roofing Supply, Inc.*................... 1,059 23,510 BlueLinx Holdings, Inc.*... 270 1,353 DXP Enterprises, Inc.*..... 180 2,986 H&E Equipment Services, Inc.*................... 640 7,558 Houston Wire & Cable Co. .. 410 5,392 Interline Brands, Inc.*.... 760 15,816 Kaman Corp. -- Class A..... 600 16,446 Lawson Products, Inc. ..... 90 1,463 RSC Holdings, Inc.*........ 1,149 10,536 Rush Enterprises, Inc. -- Class A*........ 750 12,165 TAL International Group, Inc. ................... 350 9,096 Textainer Group Holdings, Ltd. ................... 210 4,822 Titan Machinery, Inc.*..... 300 4,314 United Rentals, Inc.*...... 1,409 20,233 Watsco, Inc. .............. 620 36,716 Willis Lease Finance Corp.*.................. 110 1,544 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 221,490 ----------- TRANSPORTATION INFRASTRUCTURE 0.0%(A) CAI International, Inc.*... 230 3,130 ----------- TOTAL TRANSPORTATION INFRASTRUCTURE 3,130 ----------- WATER UTILITIES 0.3% American States Water Co. .................... 430 16,047 Artesian Resources Corp. -- Class A........ 150 2,841 Cadiz, Inc.*............... 310 3,866 California Water Service Group................... 460 17,816 Connecticut Water Service, Inc. ................... 200 4,738 Consolidated Water Co., Ltd. ................... 340 4,811 Middlesex Water Co. ....... 310 5,599 Pennichuck Corp. .......... 110 2,560 SJW Corp. ................. 300 8,244 Southwest Water Co. ....... 580 6,188 York Water Co. (The)....... 290 3,987 ----------- TOTAL WATER UTILITIES 76,697 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.2% NTELOS Holdings Corp. ..... 710 13,937 Shenandoah Telecom Co. .... 550 9,768 Syniverse Holdings, Inc.*.. 1,599 32,108 USA Mobility, Inc.*........ 530 7,388 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 63,201 ----------- TOTAL COMMON STOCKS (Cost $17,580,546) 25,215,716 ----------- WARRANTS 0.0%(A)(D) OIL, GAS & CONSUMABLE FUELS 0.0%(A) Greenhunter Energy, Inc. $27.50, 09/14/11........ 3 -- ----------- TOTAL OIL, GAS & CONSUMABLE FUELS -- ----------- TOTAL WARRANTS (Cost $0) -- ------------------------------------------------------- FACE AMOUNT ------------------------------------------------------- REPURCHASE AGREEMENTS 9.3% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $2,846,024 on 05/03/10 collateralized by $2,885,000 FNMA at 1.000% due 11/23/11 with a value of $2,906,638... $2,846,000 $2,846,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $2,846,000)...................... 2,846,000 ----------- TOTAL INVESTMENTS 91.9%(B) (Cost $20,426,546)..................... 28,061,716 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--8.1% 2,465,260 ----------- NET ASSETS -- 100.0% $30,526,976 ------------------------------------------------------- UNREALIZED CONTRACTS GAIN ------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2010 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $13,637,400)(b)......... 191 $572,767 ------------------------------------------------------- UNREALIZED UNITS LOSS ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston May 2010 Russell 2000 Index Swap, Terminating 05/21/10 (Notional Market Value $11,390,164)**(c)....... 15,895 $(336,015) Goldman Sachs International May 2010 Russell 2000 Index Swap, Terminating 05/21/10 (Notional Market Value $10,822,258)**(c)....... 15,102 (372,879) ----------- (TOTAL NOTIONAL MARKET VALUE $22,212,422) $(708,894) -------------------------------------------------------
* Non-Income Producing Security. ** Price return based on Russell 2000 Index +/- financing at a variable rate. (a) Amount represents less than 0.05% of net assets. (b) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (c) Values determined based on Level 2 inputs. (d) Values determined based on Level 3 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. 46 RYDEX INVERSE 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------- REPURCHASE AGREEMENTS 61.6% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $7,356,061 on 05/03/10 collateralized by $7,450,000 FNMA at 1.000% due 11/23/11 with a value of $7,505,875... $7,356,000 $7,356,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $7,356,000) 7,356,000 ----------- TOTAL INVESTMENTS 61.6%(A) (Cost $7,356,000) 7,356,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--38.4% 4,582,409 ----------- NET ASSETS--100.0% $11,938,409 ------------------------------------------------------- UNREALIZED CONTRACTS LOSS ------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2010 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $6,283,200)(a).......... 88 $(132,761) ------------------------------------------------------- UNREALIZED UNITS GAIN ------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston May 2010 Russell 2000 Index Swap, Terminating 05/21/10 (Notional Market Value $12,368,301)*(b)........ 17,260 $364,870 Goldman Sachs International May 2010 Russell 2000 Index Swap, Terminating 05/21/10 (Notional Market Value $5,222,244)*(b)......... 7,288 123,065 ----------- (TOTAL NOTIONAL MARKET VALUE $17,590,545) $487,935 -------------------------------------------------------
* Price return based on Russell 2000 Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. SEMI-ANNUAL REPORT 47 RYDEX 2x S&P SELECT SECTOR ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 84.5% ENERGY EQUIPMENT & SERVICES 17.4% Baker Hughes, Inc. .......... 4,321 $214,988 Cameron International Corp.*.................... 2,970 117,196 Diamond Offshore Drilling, Inc. ..................... 860 68,026 FMC Technologies, Inc.*...... 1,660 112,365 Halliburton Co. ............. 8,210 251,636 Helmerich & Payne, Inc. ..... 800 32,496 Nabors Industries, Ltd.*..... 3,970 85,633 National-Oilwell Varco, Inc. ..................... 4,020 177,001 Rowan Cos., Inc.*............ 2,330 69,434 Schlumberger, Ltd. .......... 9,450 674,919 Smith International, Inc. ... 3,110 148,534 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 1,952,228 ----------- OIL, GAS & CONSUMABLE FUELS 67.1% Anadarko Petroleum Corp. .... 4,340 269,775 Apache Corp. ................ 2,940 299,175 Cabot Oil & Gas Corp. ....... 1,700 61,421 Chesapeake Energy Corp. ..... 6,570 156,366 Chevron Corp. ............... 15,530 1,264,763 ConocoPhillips............... 8,320 492,461 CONSOL Energy, Inc. ......... 2,660 118,849 Denbury Resources, Inc.*..... 6,030 115,475 Devon Energy Corp. .......... 3,910 263,260 El Paso Corp. ............... 8,380 101,398 EOG Resources, Inc. ......... 2,330 261,240 Exxon Mobil Corp. ........... 24,120 1,636,542 Hess Corp. .................. 2,740 174,127 Marathon Oil Corp. .......... 6,290 202,224 Massey Energy Co. ........... 2,480 90,842 Murphy Oil Corp. ............ 1,960 117,894 Noble Energy, Inc. .......... 1,800 137,520 Occidental Petroleum Corp. .. 5,370 476,104 Peabody Energy Corp. ........ 2,970 138,758 Pioneer Natural Resources Co. ............ 1,980 126,977 Range Resources Corp. ....... 1,890 90,266 Southwestern Energy Co.*..... 3,350 132,928 Spectra Energy Corp. ........ 6,580 153,577 Sunoco, Inc. ................ 2,110 69,166 Tesoro Corp. ................ 3,350 44,053 Valero Energy Corp. ......... 5,970 124,116 Williams Cos., Inc.(The)..... 6,240 147,326 XTO Energy, Inc. ............ 5,160 245,203 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 7,511,806 ----------- TOTAL COMMON STOCKS (Cost $7,872,974) 9,464,034 ----------- TOTAL INVESTMENTS 84.5%(A) (Cost $7,872,974) 9,464,034 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--15.5% 1,735,720 ----------- NET ASSETS--100.0% $11,199,754 ----------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston May 2010 S&P Select Sector Energy Index Swap, Terminating 05/21/10 (Notional Market Value $12,951,299)**(b)......... 21,550 (164,786) -----------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Energy Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. See Notes to Financial Statements. 48 RYDEX INVERSE 2x S&P SELECT SECTOR ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------ REPURCHASE AGREEMENTS 70.4% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $1,118,009 on 05/03/10 collateralized by $1,135,000 FNMA at 1.000% due 11/23/11 with a value of $1,143,513... $1,118,000 $1,118,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $1,118,000) 1,118,000 ---------- TOTAL INVESTMENTS 70.4%(A) (Cost $1,118,000) 1,118,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--29.6% 470,871 ---------- NET ASSETS--100.0% $1,588,871 ------------------------------------------------------ UNREALIZED UNITS GAIN ------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston May 2010 S&P Select Sector Energy Index Swap, Terminating 05/21/10 (Notional Market Value $3,182,387)*(b)......... 5,295 $38,593 ------------------------------------------------------
* Price return based on S&P Select Sector Energy Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. SEMI-ANNUAL REPORT 49 RYDEX 2x S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 84.2% CAPITAL MARKETS 13.2% Ameriprise Financial, Inc. .................... 2,650 $122,854 Bank of New York Mellon Corp. ................... 12,550 390,681 Charles Schwab Corp.(The)... 10,160 195,986 E*TRADE Financial Corp.*.... 19,920 33,466 Federated Investors, Inc. -- Class B.......... 920 22,190 Franklin Resources, Inc. ... 1,540 178,086 Goldman Sachs Group, Inc.(The)................ 5,470 794,244 Invesco Ltd. ............... 4,460 102,535 Janus Capital Group, Inc. .. 1,910 26,893 Legg Mason, Inc. ........... 1,690 53,556 Morgan Stanley.............. 14,530 439,097 Northern Trust Corp. ....... 2,510 138,000 State Street Corp. ......... 5,150 224,025 T. Rowe Price Group, Inc. .. 2,690 154,702 ----------- TOTAL CAPITAL MARKETS 2,876,315 ----------- COMMERCIAL BANKS 17.0% BB&T Corp. ................. 7,180 238,663 Comerica, Inc. ............. 1,810 76,020 Fifth Third Bancorp......... 8,260 123,157 First Horizon National Corp.*................... 2,340 33,111 Huntington Bancshares, Inc. .................... 7,440 50,369 KeyCorp..................... 9,120 82,262 M&T Bank Corp. ............. 860 75,121 Marshall & Ilsley Corp. .... 5,470 49,777 PNC Financial Services Group, Inc. ............. 5,370 360,918 Regions Financial Corp. .... 12,390 109,528 SunTrust Banks, Inc. ....... 5,190 153,624 U.S. Bancorp................ 19,880 532,187 Wells Fargo & Co. .......... 53,830 1,782,311 Zions Bancorp............... 1,560 44,819 ----------- TOTAL COMMERCIAL BANKS 3,711,867 ----------- CONSUMER FINANCE 4.3% American Express Co. ....... 12,430 573,271 Capital One Financial Corp. ................... 4,730 205,329 Discover Financial Services................. 5,650 87,349 SLM Corp.*.................. 5,040 61,690 ----------- TOTAL CONSUMER FINANCE 927,639 ----------- DIVERSIFIED FINANCIAL SERVICES 23.1% Bank of America Corp. ...... 104,230 1,858,421 Citigroup, Inc.*............ 204,160 892,179 CME Group, Inc. ............ 690 226,603 IntercontinentalExchange, Inc.*.................... 760 88,639 JPMorgan Chase & Co. ....... 41,280 1,757,702 Leucadia National Corp.*.... 1,970 49,861 Moody's Corp. .............. 2,040 50,429 Nasdaq OMX Group (The)*..... 1,540 32,340 NYSE Euronext............... 2,710 88,427 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 5,044,601 ----------- INSURANCE 19.2% AFLAC, Inc. ................ 4,870 248,175 Allstate Corp. ............. 5,580 182,299 American International Group, Inc.*............. 1,400 54,460 Aon Corp. .................. 2,770 117,614 Assurant, Inc. ............. 1,210 44,080 Berkshire Hathaway, Inc. -- Class B*......... 17,190 1,323,630 Chubb Corp. ................ 3,410 180,287 Cincinnati Financial Corp. ................... 1,690 47,996 Genworth Financial, Inc. -- Class A*......... 5,080 83,922 Hartford Financial Services Group, Inc. ............. 4,610 131,708 Lincoln National Corp. ..... 3,140 96,053 Loews Corp. ................ 3,690 137,416 Marsh & McLennan Cos., Inc. .................... 5,530 133,937 MetLife, Inc. .............. 8,510 387,886 Principal Financial Group, Inc. .................... 3,320 97,010 Progressive Corp. .......... 6,980 140,228 Prudential Financial, Inc. .................... 4,830 306,995 Torchmark Corp. ............ 860 46,044 Travelers Cos., Inc.(The)... 5,340 270,951 Unum Group.................. 3,450 84,421 XL Capital, Ltd. -- Class A.................. 3,550 63,190 ----------- TOTAL INSURANCE 4,178,302 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 6.6% Apartment Investment & Management Co. -- Class A.................. 1,220 27,340 AvalonBay Communities, Inc. .................... 850 88,434 Boston Properties, Inc. .... 1,440 113,559 Equity Residential.......... 2,930 132,641 HCP, Inc. .................. 3,050 97,966 Health Care REIT, Inc. ..... 1,290 57,960 Host Hotels & Resorts, Inc. .................... 6,790 110,405 Kimco Realty Corp. ......... 4,210 65,634 Plum Creek Timber Co., Inc. .................... 1,690 67,262 ProLogis.................... 4,930 64,928 Public Storage, Inc. ....... 1,410 136,643 Simon Property Group, Inc. .................... 3,010 267,950 Ventas, Inc. ............... 1,630 76,985 Vornado Realty Trust........ 1,640 136,727 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,444,434 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% CB Richard Ellis Group, Inc. -- Class A*......... 2,810 48,669 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 48,669 ----------- THRIFTS & MORTGAGE FINANCE 0.6% Hudson City Bancorp, Inc. .. 4,920 65,436 People's United Financial, Inc. .................... 3,860 59,946 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 125,382 ----------- TOTAL COMMON STOCKS (Cost $11,012,805) 18,357,209 ------------------------------------------------------ FACE AMOUNT ------------------------------------------------------ REPURCHASE AGREEMENTS 0.9% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $203,002 on 05/03/10 collateralized by $210,000 FNMA at 1.000% due 11/23/11 with a value of $211,575.............. $203,000 $203,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $203,000) 203,000 ----------- TOTAL INVESTMENTS 85.1%(A) (Cost $11,215,805) 18,560,209 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--14.9% 3,238,039 ----------- NET ASSETS--100.0% $21,798,248 ------------------------------------------------------
See Notes to Financial Statements. 50 RYDEX 2x S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
UNREALIZED UNITS LOSS ------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston May 2010 S&P Select Sector Financial Index Swap, Terminating 05/21/10 (Notional Market Value $25,280,995)**(b).. 156,779 $(667,868) ------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Financial Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. REIT--Real Estate Investment Trust See Notes to Financial Statements. SEMI-ANNUAL REPORT 51 RYDEX INVERSE 2x S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------ REPURCHASE AGREEMENTS 57.3% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $4,390,037 on 05/03/10 collateralized by $4,445,000 FNMA at 1.000% due 11/23/11 with a value of $4,478,338... $4,390,000 $4,390,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $4,390,000) 4,390,000 ---------- TOTAL INVESTMENTS 57.3%(A) (Cost $4,390,000) 4,390,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--42.7% 3,269,826 ---------- NET ASSETS--100.0% $7,659,826 ------------------------------------------------------ UNREALIZED UNITS GAIN ------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston May 2010 S&P Select Sector Financial Index Swap, Terminating 05/21/10 (Notional Market Value $15,273,903)*(b)........ 94,722 $361,741 ------------------------------------------------------
* Price return based on S&P Select Sector Financial Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. 52 RYDEX 2x S&P SELECT SECTOR HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------- COMMON STOCKS 86.6% BIOTECHNOLOGY 10.8% Amgen, Inc.*................. 2,259 $129,576 Biogen Idec, Inc.*........... 640 34,080 Celgene Corp.*............... 1,059 65,605 Cephalon, Inc.*.............. 170 10,914 Genzyme Corp.*............... 630 33,541 Gilead Sciences, Inc.*....... 2,079 82,474 ---------- TOTAL BIOTECHNOLOGY 356,190 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 13.9% Baxter International, Inc. .. 1,409 66,533 Becton, Dickinson & Co. ..... 560 42,767 Boston Scientific Corp.*..... 3,518 24,204 C.R. Bard, Inc. ............. 230 19,902 CareFusion Corp.*............ 410 11,308 Dentsply International, Inc. ..................... 340 12,458 Hospira, Inc.*............... 380 20,440 Intuitive Surgical, Inc.*.... 90 32,450 Medtronic, Inc. ............. 2,559 111,803 St Jude Medical, Inc.*....... 770 31,431 Stryker Corp. ............... 660 37,911 Varian Medical Systems, Inc.*..................... 290 16,350 Zimmer Holdings, Inc.*....... 500 30,455 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 458,012 ---------- HEALTH CARE PROVIDERS & SERVICES 15.4% Aetna, Inc. ................. 1,020 30,141 AmerisourceBergen Corp. ..... 680 20,978 Cardinal Health, Inc. ....... 840 29,139 CIGNA Corp. ................. 660 21,160 Coventry Health Care, Inc.*.. 340 8,072 DaVita, Inc.*................ 240 14,983 Express Scripts, Inc.*....... 670 67,087 Humana, Inc.*................ 420 19,202 Laboratory Corp. of America Holdings*................. 240 18,857 McKesson Corp. .............. 640 41,478 Medco Health Solutions, Inc.*..................... 1,099 64,753 Patterson Cos., Inc. ........ 220 7,038 Quest Diagnostics, Inc. ..... 360 20,578 Tenet Healthcare Corp.*...... 1,039 6,494 UnitedHealth Group, Inc. .... 2,689 81,503 WellPoint, Inc.*............. 1,050 56,490 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 507,953 ---------- HEALTH CARE TECHNOLOGY 0.4% Cerner Corp.*................ 160 13,586 ---------- TOTAL HEALTH CARE TECHNOLOGY 13,586 ---------- LIFE SCIENCES TOOLS & SERVICES 3.5% Life Technologies Corp.*..... 420 22,978 Millipore Corp.*............. 150 15,922 PerkinElmer, Inc. ........... 270 6,764 Thermo Fisher Scientific, Inc.*..................... 940 51,963 Waters Corp.*................ 220 15,838 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 113,465 ---------- PHARMACEUTICALS 42.6% Abbott Laboratories.......... 3,029 154,964 Allergan, Inc. .............. 730 46,494 Bristol-Myers Squibb Co. .... 3,968 100,351 Eli Lilly & Co. ............. 2,339 81,795 Forest Laboratories, Inc.*... 710 19,355 Johnson & Johnson, Inc. ..... 6,337 407,469 King Pharmaceuticals, Inc.*.. 620 6,076 Merck & Co., Inc. ........... 7,177 251,482 Mylan, Inc.*................. 710 $15,641 Pfizer, Inc. ................ 18,602 311,025 Watson Pharmaceuticals, Inc.*..................... 260 11,133 ---------- TOTAL PHARMACEUTICALS 1,405,785 ---------- TOTAL COMMON STOCKS (Cost $2,495,089) 2,854,991 ---------- TOTAL INVESTMENTS 86.6%(A) (Cost $2,495,089)......... 2,854,991 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--13.4% 442,452 ---------- NET ASSETS--100.0% $3,297,443 ---------------------------------------------------- UNREALIZED UNITS LOSS ---------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston May 2010 S&P Select Sector Health Care Index Swap, Terminating 05/21/10 (Notional Market Value $3,728,935)**(b).... 12,023 $(48,886) ----------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Health Care Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 RYDEX INVERSE 2x S&P SELECT SECTOR HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------ REPURCHASE AGREEMENTS 69.3% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $1,138,009 on 05/03/10 collateralized by $1,065,000 FNMA at 4.620% due 10/15/14 with a value of $1,162,181... $1,138,000 $1,138,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $1,138,000) 1,138,000 ----------- TOTAL INVESTMENTS 69.3%(A) (Cost $1,138,000) 1,138,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--30.7% 504,388 ----------- NET ASSETS--100.0% $1,642,388 ------------------------------------------------------ UNREALIZED UNITS GAIN ------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston May 2010 S&P Select Sector Health Care Index Swap, Terminating 05/21/10 (Notional Market Value $3,276,384)*(b)......... 10,564 $40,525 ------------------------------------------------------
* Price return based on S&P Select Sector Health Care Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. 54 RYDEX 2x S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 83.2% COMMUNICATIONS EQUIPMENT 9.6% Cisco Systems, Inc.*........ 17,170 $462,217 Harris Corp. ............... 430 22,136 JDS Uniphase Corp.*......... 870 11,301 Juniper Networks, Inc.*..... 1,630 46,308 Motorola, Inc.*............. 7,100 50,197 QUALCOMM, Inc. ............. 5,070 196,412 Tellabs, Inc. .............. 1,350 12,258 ---------- TOTAL COMMUNICATIONS EQUIPMENT 800,829 ---------- COMPUTERS & PERIPHERALS 22.2% Apple, Inc.*................ 2,720 710,247 Dell, Inc.*................. 5,250 84,945 EMC Corp.*.................. 6,240 118,622 Hewlett-Packard Co. ........ 5,860 304,544 International Business Machines Corp. .......... 3,890 501,810 Lexmark International, Inc. -- Class A*......... 300 11,115 NetApp, Inc.*............... 1,090 37,790 QLogic Corp.*............... 420 8,135 SanDisk Corp.*.............. 750 29,918 Teradata Corp.*............. 550 15,989 Western Digital Corp.*...... 720 29,585 ---------- TOTAL COMPUTERS & PERIPHERALS 1,852,700 ---------- DIVERSIFIED TELECOMMUNICATION SERVICES 9.5% AT&T, Inc. ................. 17,700 461,262 CenturyTel, Inc. ........... 940 32,063 Frontier Communications Corp. ................... 1,120 8,915 Qwest Communications International, Inc. ..... 4,840 25,313 Verizon Communications, Inc. .................... 8,550 247,010 Windstream Corp. ........... 1,520 16,796 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 791,359 ---------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 2.3% Agilent Technologies, Inc.*.................... 1,100 39,886 Amphenol Corp. -- Class A... 560 25,878 Corning, Inc. .............. 4,770 91,822 FLIR Systems, Inc.*......... 510 15,601 Jabil Circuit, Inc. ........ 700 10,724 Molex, Inc. ................ 470 10,533 ---------- TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 194,444 ---------- INTERNET SOFTWARE & SERVICES 6.7% Akamai Technologies, Inc.*.. 580 22,521 eBay, Inc.*................. 3,450 82,144 Google, Inc. -- Class A*.... 720 378,317 VeriSign, Inc.*............. 610 16,635 Yahoo!, Inc.*............... 3,650 60,335 ---------- TOTAL INTERNET SOFTWARE & SERVICES 559,952 ---------- IT SERVICES 5.8% Automatic Data Processing, Inc. .................... 1,550 67,208 Cognizant Technology Solutions Corp. -- Class A*....................... 930 47,598 Computer Sciences Corp.*.... 490 25,671 Fidelity National Information Services, Inc. .................... 1,080 28,393 Fiserv, Inc.*............... 480 24,523 Mastercard, Inc. -- Class A........................ 300 74,412 Paychex, Inc. .............. 1,010 30,906 SAIC, Inc.*................. 910 15,843 Total System Services, Inc. .................... 680 10,887 Visa, Inc. -- Class A....... 1,340 120,908 Western Union Co. .......... 2,120 38,690 ---------- TOTAL IT SERVICES 485,039 ---------- OFFICE ELECTRONICS 0.6% Xerox Corp. ................ 4,330 $47,197 ---------- TOTAL OFFICE ELECTRONICS 47,197 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 9.3% Advanced Micro Devices, Inc.*.................... 1,930 17,486 Altera Corp. ............... 960 24,346 Analog Devices, Inc. ....... 940 28,134 Applied Materials, Inc. .... 4,130 56,911 Broadcom Corp. -- Class A... 1,340 46,217 Intel Corp. ................ 14,120 322,360 KLA-Tencor Corp. ........... 560 19,074 Linear Technology Corp. .... 720 21,643 LSI Corp.*.................. 2,220 13,364 MEMC Electronic Materials, Inc.*.................... 770 9,987 Microchip Technology, Inc. .................... 600 17,526 Micron Technology, Inc.*.... 2,720 25,432 National Semiconductor Corp. ................... 810 11,972 Novellus Systems, Inc.*..... 350 9,170 NVIDIA Corp.*............... 1,760 27,667 Teradyne, Inc.*............. 680 8,316 Texas Instruments, Inc. .... 3,780 98,318 Xilinx, Inc. ............... 890 22,944 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 780,867 ---------- SOFTWARE 16.0% Adobe Systems, Inc.*........ 1,610 54,080 Autodesk, Inc.*............. 750 25,507 BMC Software, Inc.*......... 580 22,829 CA, Inc. ................... 1,250 28,512 Citrix Systems, Inc.*....... 590 27,730 Compuware Corp.*............ 860 7,396 Electronic Arts, Inc.*...... 1,050 20,339 Intuit, Inc.*............... 990 35,798 McAfee, Inc.*............... 510 17,723 Microsoft Corp. ............ 22,880 698,755 Novell, Inc.*............... 1,350 7,574 Oracle Corp. ............... 11,780 304,395 Red Hat, Inc.*.............. 620 18,519 Salesforce.com, Inc.*....... 350 29,960 Symantec Corp.*............. 2,500 41,925 ---------- TOTAL SOFTWARE 1,341,042 ---------- WIRELESS TELECOMMUNICATION SERVICES 1.2% American Tower Corp. -- Class A*........ 1,250 51,012 MetroPCS Communications, Inc.*.................... 930 7,096 Sprint Nextel Corp.*........ 9,290 39,483 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 97,591 ---------- TOTAL COMMON STOCKS (Cost $5,995,092) 6,951,020 ----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 55 RYDEX 2x S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ----------------------------------------------------- REPURCHASE AGREEMENTS 1.6% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $139,001 on 05/03/10 collateralized by $130,000 FNMA at 4.620% due 10/15/14 with a value of $141,863.............. $139,000 $139,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $139,000) 139,000 ---------- TOTAL INVESTMENTS 84.8%(A) (Cost $6,134,092) 7,090,020 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--15.2% 1,267,351 ---------- NET ASSETS--100.0% $8,357,371 ----------------------------------------------------- UNREALIZED UNITS LOSS ----------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston May 2010 S&P Select Sector Technology Index Swap, Terminating 05/21/10 (Notional Market Value $9,799,744)**(b)... 41,863 $(215,058) -----------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Technology Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. 56 RYDEX INVERSE 2x S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ----------------------------------------------------- REPURCHASE AGREEMENTS 52.1% State Street Bank & Trust Co., 0.100%, dated 04/30/10, to be repurchased at $863,007 on 05/03/10 collateralized by $810,000 FNMA at 4.620% due 10/15/14 with a value of $883,913.............. $863,000 $863,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $863,000) 863,000 ---------- TOTAL INVESTMENTS 52.1%(A) (Cost $863,000) 863,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--47.9% 794,467 ---------- NET ASSETS--100.0% $1,657,467 ----------------------------------------------------- UNREALIZED UNITS GAIN ----------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston May 2010 S&P Select Sector Technology Index Swap, Terminating 05/21/10 (Notional Market Value $3,286,916)*(b).... 14,041 $66,421 -----------------------------------------------------
* Price return based on S&P Select Sector Technology Index +/- financing at a variable rate. (a) Unless otherwise indicated, the values of the Portfolio are determined based on Level 1 inputs. (b) Values determined based on Level 2 inputs. FNMA--Federal National Mortgage Association. See Notes to Financial Statements. SEMI-ANNUAL REPORT 57 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) April 30, 2010 --------------------------------------------------------------------------------
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*.............. $ 91,861,339 $ -- $17,950,415 $ -- Repurchase Agreements..................... 6,651,000 58,930,000 1,557,000 2,199,000 ------------ ------------ ----------- ------------ Total Investments......................... 98,512,339 58,930,000 19,507,415 2,199,000 ------------ ------------ ----------- ------------ Cash...................................... 736 647 811 396 Segregated Cash for Swaps................. 12,457,176 22,579,788 2,077,006 998,744 Margin Deposit for Future Contracts....... 2,727,000 2,529,000 708,000 84,000 Unrealized Appreciation on Swap Agreements.............................. -- 2,369,032 -- 117,536 Receivables: Investments Sold........................ 41,458 -- 105,000 -- Dividends............................... 90,499 164 7,632 6 Variation Margin on Futures Contracts... -- 612,575 -- 25,760 Equity Index Swap Settlement............ 10,764 -- 987 -- ------------ ------------ ----------- ------------ TOTAL ASSETS......................... 113,839,972 87,021,206 22,406,851 3,425,442 ------------ ------------ ----------- ------------ LIABILITIES Unrealized Depreciation on Swap Agreements.............................. 1,900,965 -- 387,324 -- Payables: Investments Purchased................... 92,817 -- 82,200 -- Equity Index Swap Settlement............ -- 7,833 -- 173 Variation Margin on Futures Contracts... 660,545 -- 215,885 -- Accrued Management Fees................. 64,884 49,620 12,422 1,999 ------------ ------------ ----------- ------------ TOTAL LIABILITIES.................... 2,719,211 57,453 697,831 2,172 ------------ ------------ ----------- ------------ NET ASSETS................................ $111,120,761 $ 86,963,753 $21,709,020 $ 3,423,270 ============ ============ =========== ============ NET ASSETS CONSIST OF: Paid-in Capital........................... $110,003,263 $175,988,114 $16,581,086 $ 16,158,872 Undistributed (Distributions in Excess) of Net Investment Income................... 48,341 (307,772) (412) (14,855) Accumulated Net Realized Loss on Investment Securities, Futures and Swaps................................... (16,112,574) (90,543,938) (586,581) (12,817,001) Net Unrealized Appreciation on Investment Securities, Futures and Swaps........... 17,181,731 1,827,349 5,714,927 96,254 ------------ ------------ ----------- ------------ NET ASSETS................................ $111,120,761 $ 86,963,753 $21,709,020 $ 3,423,270 ============ ============ =========== ============ Shares Outstanding (Unlimited Shares Authorized), No Par Value............... 3,000,002 1,800,000 450,000 150,000 ============ ============ =========== ============ Net Asset Value, Offering Price and Repurchase Price Per Share.............. $ 37.04 $ 48.31 $ 48.24 $ 22.82 ============ ============ =========== ============ *Total Cost of Investments................ $ 80,361,065 $ 58,930,000 $13,819,140 $ 2,199,000 ============ ============ =========== ============
See Notes to Financial Statements. 58 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
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*............. $25,215,716 $ -- $ 9,464,034 $ -- Repurchase Agreements.................... 2,846,000 7,356,000 -- 1,118,000 ----------- ------------ ----------- ----------- Total Investments........................ 28,061,716 7,356,000 9,464,034 1,118,000 ----------- ------------ ----------- ----------- Cash..................................... 260 416 -- 700 Segregated Cash for Swaps................ 2,785,014 3,719,019 2,022,000 432,300 Margin Deposit for Future Contracts...... 868,000 240,000 -- -- Unrealized Appreciation on Swap Agreements............................. -- 487,935 -- 38,593 Receivables: Investments Sold....................... 15,660 -- 103,988 -- Dividends.............................. 12,434 21 1,708 3 Variation Margin on Futures Contracts.. -- 143,861 -- -- Equity Index Swap Settlement........... 3,812 -- -- -- ----------- ------------ ----------- ----------- TOTAL ASSETS........................ 31,746,896 11,947,252 11,591,730 1,589,596 ----------- ------------ ----------- ----------- LIABILITIES Unrealized Depreciation on Swap Agreements............................. 708,894 -- 164,786 -- Payables: Investments Purchased.................. -- -- 72,580 -- Equity Index Swap Settlement........... -- 1,803 303 20 Variation Margin on Futures Contracts.. 493,657 -- -- -- Due to Custodian....................... -- -- 147,462 -- Accrued Management Fees................ 17,369 7,040 6,845 705 ----------- ------------ ----------- ----------- TOTAL LIABILITIES................... 1,219,920 8,843 391,976 725 ----------- ------------ ----------- ----------- NET ASSETS............................... $30,526,976 $ 11,938,409 $11,199,754 $ 1,588,871 =========== ============ =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.......................... $24,358,481 $ 35,450,429 $12,797,871 $ 6,760,787 Undistributed (Distributions in Excess) of Net Investment Income............... 8,563 (55,675) (4,159) (4,444) Accumulated Net Realized Loss on Investment Securities, Futures and Swaps.................................. (1,339,111) (23,811,519) (3,020,232) (5,206,065) Net Unrealized Appreciation on Investment Securities, Futures and Swaps.......... 7,499,043 355,174 1,426,274 38,593 ----------- ------------ ----------- ----------- NET ASSETS............................... $30,526,976 $ 11,938,409 $11,199,754 $ 1,588,871 =========== ============ =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.............. 700,000 450,000 500,017 350,000 =========== ============ =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share............. $ 43.61 $ 26.53 $ 22.40 $ 4.54 =========== ============ =========== =========== *Total Cost of Investments............... $20,426,546 $ 7,356,000 $ 7,872,974 $ 1,118,000 =========== ============ =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 59 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
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*......... $ 18,357,209 $ -- $ 2,854,991 $ -- Repurchase Agreements................ 203,000 4,390,000 -- 1,138,000 ------------ ------------ ----------- ----------- Total Investments.................... 18,560,209 4,390,000 2,854,991 1,138,000 ------------ ------------ ----------- ----------- Cash................................. 373 864 -- 753 Segregated Cash for Swaps............ 3,916,600 2,911,600 518,900 464,000 Unrealized Appreciation on Swap Agreements......................... -- 361,741 -- 40,525 Receivables: Dividends.......................... 8,976 12 2,770 3 Equity Index Swap Settlement....... -- -- -- 6 ------------ ------------ ----------- ----------- TOTAL ASSETS.................... 22,486,158 7,664,217 3,376,661 1,643,287 ------------ ------------ ----------- ----------- LIABILITIES Unrealized Depreciation on Swap Agreements......................... 667,868 -- 48,886 -- Payables: Investments Purchased.............. 5,915 -- 13,998 -- Equity Index Swap Settlement....... 615 94 88 -- Due to Custodian................... -- -- 14,241 -- Accrued Management Fees............ 13,512 4,297 2,005 899 ------------ ------------ ----------- ----------- TOTAL LIABILITIES............... 687,910 4,391 79,218 899 ------------ ------------ ----------- ----------- NET ASSETS........................... $ 21,798,248 $ 7,659,826 $ 3,297,443 $ 1,642,388 ============ ============ =========== =========== NET ASSETS CONSIST OF: Paid-in Capital...................... $ 29,046,395 $ 20,893,523 $ 5,239,117 $ 4,811,743 Undistributed (Distributions in Excess) of Net Investment Income... 13,524 (31,065) 1,423 (5,581) Accumulated Net Realized Loss on Investment Securities, Futures and Swaps.............................. (13,938,207) (13,564,373) (2,254,113) (3,204,299) Net Unrealized Appreciation on Investment Securities, Futures and Swaps.............................. 6,676,536 361,741 311,016 40,525 ------------ ------------ ----------- ----------- NET ASSETS........................... $ 21,798,248 $ 7,659,826 $ 3,297,443 $ 1,642,388 ============ ============ =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.......... 1,400,277 1,750,100 50,009 50,000 ============ ============ =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share......... $ 15.57 $ 4.38 $ 65.94 $ 32.85 ============ ============ =========== =========== *Total Cost of Investments........... $ 11,215,805 $ 4,390,000 $ 2,495,089 $ 1,138,000 ============ ============ =========== ===========
See Notes to Financial Statements. 60 STATEMENT OF ASSETS AND LIABILITIES (Unaudited) (concluded) April 30, 2010 --------------------------------------------------------------------------------
RYDEX RYDEX 2X S&P INVERSE 2X S&P SELECT SECTOR SELECT SECTOR TECHNOLOGY ETF TECHNOLOGY ETF -------------- -------------- ASSETS Investments at Market Value*............................. $ 6,951,020 $ -- Repurchase Agreements.................................... 139,000 863,000 ----------- ----------- Total Investments........................................ 7,090,020 863,000 ----------- ----------- Cash..................................................... 686 405 Segregated Cash for Swaps................................ 1,474,400 728,600 Unrealized Appreciation on Swap Agreements............... -- 66,421 Receivables: Dividends.............................................. 12,467 2 ----------- ----------- TOTAL ASSETS........................................ 8,577,573 1,658,428 ----------- ----------- LIABILITIES Unrealized Depreciation on Swap Agreements............... 215,058 -- Payables: Equity Index Swap Settlement........................... 236 20 Accrued Management Fees................................ 4,908 941 ----------- ----------- TOTAL LIABILITIES................................... 220,202 961 ----------- ----------- NET ASSETS............................................... $ 8,357,371 $ 1,657,467 =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.......................................... $ 9,964,977 $ 6,086,350 Undistributed (Distributions in Excess) of Net Investment Income................................................. 7,570 (6,356) Accumulated Net Realized Loss on Investment Securities, Futures and Swaps...................................... (2,356,046) (4,488,948) Net Unrealized Appreciation on Investment Securities, Futures and Swaps...................................... 740,870 66,421 ----------- ----------- NET ASSETS............................................... $ 8,357,371 $ 1,657,467 =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................................. 150,005 100,000 =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share.................................................. $ 55.71 $ 16.57 =========== =========== *Total Cost of Investments............................... $ 6,134,092 $ 863,000 =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 61 STATEMENT OF OPERATIONS (Unaudited) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
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................................ $ 887,745 $ -- $ 118,868 $ -- Interest................................. 1,003 11,658 200 520 ----------- ------------ ---------- ----------- Total Income.......................... 888,748 11,658 119,068 520 ----------- ------------ ---------- ----------- EXPENSES Management Fee........................... 377,693 315,242 61,952 15,155 Trustee Fees............................. 5,120 4,188 738 220 ----------- ------------ ---------- ----------- Total Expenses........................ 382,813 319,430 62,690 15,375 ----------- ------------ ---------- ----------- Net Investment Income (Loss)............... 505,935 (307,772) 56,378 (14,855) ----------- ------------ ---------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.............................. 575,342 (1,453) 339,326 (112) In-kind Redemptions...................... 4,204,508 -- -- -- Futures Contracts........................ 3,024,330 (10,086,287) 1,128,887 (398,493) Swap Contracts........................... 16,437,078 (22,780,296) 3,130,306 (1,827,902) ----------- ------------ ---------- ----------- Net Realized Gain (Loss).............. 24,241,258 (32,868,036) 4,598,519 (2,226,507) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities.................... 7,554,959 -- 2,771,550 -- Futures Contracts........................ 1,167,916 (599,199) 703,299 (93,816) Swap Contracts........................... (1,900,962) 2,369,027 (387,318) 117,536 ----------- ------------ ---------- ----------- Net Change in Unrealized Appreciation on Investments.............................. 6,821,913 1,769,828 3,087,531 23,720 ----------- ------------ ---------- ----------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts.. 31,063,171 (31,098,208) 7,686,050 (2,202,787) ----------- ------------ ---------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........... $31,569,106 $(31,405,980) $7,742,428 $(2,217,642) =========== ============ ========== ===========
See Notes to Financial Statements. 62 STATEMENT OF OPERATIONS (Unaudited) (continued) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
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........................ $ 148,222 $ -- $ 69,777 $ -- Interest........................... 317 2,017 49 157 ----------- ----------- ---------- --------- Total Income.................... 148,539 2,017 69,826 157 ----------- ----------- ---------- --------- EXPENSES Management Fee..................... 89,947 56,991 33,053 4,535 Trustee Fees....................... 1,178 701 390 66 Other Fees......................... 30 -- -- -- ----------- ----------- ---------- --------- Total Expenses.................. 91,155 57,692 33,443 4,601 ----------- ----------- ---------- --------- Net Investment Income (Loss)......... 57,384 (55,675) 36,383 (4,444) ----------- ----------- ---------- --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments........................ 117,738 (385) 441,057 (38) In-kind Redemptions................ 1,098,545 -- 302,493 -- Futures Contracts.................. 1,583,427 (1,600,343) -- -- Swap Contracts..................... 4,920,734 (6,522,924) 1,205,555 (349,515) ----------- ----------- ---------- --------- Net Realized Gain (Loss)........ 7,720,444 (8,123,652) 1,949,105 (349,553) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities.............. 3,635,032 -- (42,131) -- Futures Contracts.................. 1,311,550 (825,697) -- -- Swap Contracts..................... (708,891) 487,935 (164,785) 38,594 ----------- ----------- ---------- --------- Net Change in Unrealized Appreciation (Depreciation) on Investments...... 4,237,691 (337,762) (206,916) 38,594 ----------- ----------- ---------- --------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts..................... 11,958,135 (8,461,414) 1,742,189 (310,959) ----------- ----------- ---------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $12,015,519 $(8,517,089) $1,778,572 $(315,403) =========== =========== ========== ========= Foreign Taxes Withheld............. $ 4 -- -- --
See Notes to Financial Statements. SEMI-ANNUAL REPORT 63 STATEMENT OF OPERATIONS (Unaudited) (continued) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
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.......................... $ 108,991 $ -- $ 27,349 $ -- Interest........................... 91 1,055 14 196 ---------- ----------- -------- --------- Total Income.................... 109,082 1,055 27,363 196 ---------- ----------- -------- --------- EXPENSES Management Fee..................... 68,242 31,744 11,768 5,694 Trustee Fees....................... 1,036 376 141 83 ---------- ----------- -------- --------- Total Expenses.................. 69,278 32,120 11,909 5,777 ---------- ----------- -------- --------- Net Investment Income (Loss)......... 39,804 (31,065) 15,454 (5,581) ---------- ----------- -------- --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments........................ 736,998 (291) 38,318 (41) In-kind Redemptions................ 387,446 -- -- -- Swap Contracts..................... 3,731,137 (3,516,882) 400,889 (477,565) ---------- ----------- -------- --------- Net Realized Gain (Loss)........ 4,855,581 (3,517,173) 439,207 (477,606) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities.............. 1,094,085 -- 184,125 -- Swap Contracts..................... (667,868) 361,740 (48,885) 40,525 ---------- ----------- -------- --------- Net Change in Unrealized Appreciation on Investments..................... 426,217 361,740 135,240 40,525 ---------- ----------- -------- --------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts..................... 5,281,798 (3,155,433) 574,447 (437,081) ---------- ----------- -------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $5,321,602 $(3,186,498) $589,901 $(442,662) ========== =========== ======== =========
See Notes to Financial Statements. 64 STATEMENT OF OPERATIONS (Unaudited) (concluded) For the Six Months Ended April 30, 2010 --------------------------------------------------------------------------------
RYDEX RYDEX 2X S&P INVERSE 2X S&P SELECT SECTOR SELECT SECTOR TECHNOLOGY ETF TECHNOLOGY ETF -------------- -------------- INVESTMENT INCOME Dividends.............................................. $ 46,261 $ -- Interest............................................... 41 218 ---------- --------- Total Income........................................ 46,302 218 ---------- --------- EXPENSES Management Fee......................................... 24,276 6,483 Trustee Fees........................................... 336 91 ---------- --------- Total Expenses...................................... 24,612 6,574 ---------- --------- Net Investment Income (Loss)............................. 21,690 (6,356) ---------- --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments............................................ (68,424) (57) In-kind Redemptions.................................... 513,159 -- Swap Contracts......................................... 1,061,242 (649,087) ---------- --------- Net Realized Gain (Loss)............................ 1,505,977 (649,144) Net Change in Unrealized Appreciation (Depreciation) on: Investment Securities.................................. 101,849 -- Swap Contracts......................................... (215,058) 66,421 ---------- --------- Net Change in Unrealized Appreciation (Depreciation) on Investments.................................... (113,209) 66,421 ---------- --------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts............................. 1,392,768 (582,723) ---------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................................ $1,414,458 $(589,079) ========== =========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 65 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, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income (Loss)..... $ 505,935 $ 1,827,179 $ (307,772) $ (634,418) Net Realized Gain (Loss)......... 24,241,258 (5,159,831) (32,868,036) (68,148,665) Net Change in Unrealized Appreciation on Investments... 6,821,913 27,212,395 1,769,828 10,530,284 ------------ ------------- ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Operations.................... 31,569,106 23,879,743 (31,405,980) (58,252,799) ------------ ------------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (504,994) (1,841,018) -- -- Net Realized Gains............... -- -- -- (12,634,948) ------------ ------------- ------------ ------------ Decrease in Net Assets From Distributions to Shareholders.................. (504,994) (1,841,018) -- (12,634,948) ------------ ------------- ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 15,398,029 88,152,392 43,977,555 175,280,502 Value of Shares Purchased through Dividend Reinvestments........ 72 -- -- -- Value of Shares Redeemed......... (52,467,739) (106,428,723) (29,081,797) (67,024,337) ------------ ------------- ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (37,069,638) (18,276,331) 14,895,758 108,256,165 ------------ ------------- ------------ ------------ Increase (Decrease) in Net Assets...................... (6,005,526) 3,762,394 (16,510,222) 37,368,418 NET ASSETS--BEGINNING OF PERIOD.... 117,126,287 113,363,893 103,473,975 66,105,557 ------------ ------------- ------------ ------------ NET ASSETS--END OF PERIOD(1)....... $111,120,761 $ 117,126,287 $ 86,963,753 $103,473,975 ============ ============= ============ ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 48,341 $ 47,400 $ (307,772) $ -- ============ ============= ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 500,000 4,750,000 750,000 1,600,000 Shares Purchased through Dividend Reinvestments................. 2 -- -- -- Shares Redeemed.................. (1,650,000) (4,700,000) (500,000) (550,000) Shares Outstanding, Beginning of Period........................ 4,150,000 4,100,000 1,550,000 500,000 ------------ ------------- ------------ ------------ Shares Outstanding, End of Period........................ 3,000,002 4,150,000 1,800,000 1,550,000 ============ ============= ============ ============
See Notes to Financial Statements. 66 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P MIDCAP 400 RYDEX 2X S&P MIDCAP 400 ETF ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income (Loss)..... $ 56,378 $ 67,866 $ (14,855) $ (44,343) Net Realized Gain (Loss)......... 4,598,519 1,225,122 (2,226,507) (11,057,060) Net Change in Unrealized Appreciation on Investments... 3,087,531 3,015,883 23,720 1,945,048 ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations.................... 7,742,428 4,308,871 (2,217,642) (9,156,355) ----------- ----------- ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (56,790) (67,595) -- -- Net Realized Gains............... -- -- -- (2,190,847) ----------- ----------- ----------- ------------ Decrease in Net Assets From Distributions to Shareholders.................. (56,790) (67,595) -- (2,190,847) ----------- ----------- ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... -- 6,026,265 -- 10,392,003 Value of Shares Redeemed......... -- (1,724,185) -- -- ----------- ----------- ----------- ------------ Net Increase in Net Assets Resulting From Share Transactions.................. -- 4,302,080 -- 10,392,003 ----------- ----------- ----------- ------------ Increase (Decrease) in Net Assets...................... 7,685,638 8,543,356 (2,217,642) (955,199) NET ASSETS--BEGINNING OF PERIOD.... 14,023,382 5,480,026 5,640,912 6,596,111 ----------- ----------- ----------- ------------ NET ASSETS--END OF PERIOD(1)....... $21,709,020 $14,023,382 $ 3,423,270 $ 5,640,912 =========== =========== =========== ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ (412) $ -- $ (14,855) $ -- =========== =========== =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. -- 350,000 -- 100,000 Shares Redeemed.................. -- (100,000) -- -- Shares Outstanding, Beginning of Period........................ 450,000 200,000 150,000 50,000 ----------- ----------- ----------- ------------ Shares Outstanding, End of Period........................ 450,000 450,000 150,000 150,000 =========== =========== =========== ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 67 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, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income (Loss)..... $ 57,384 $ 110,893 $ (55,675) $ (113,240) Net Realized Gain (Loss)......... 7,720,444 (2,659,831) (8,123,652) (17,915,327) Net Change in Unrealized Appreciation (Depreciation) on Investments................... 4,237,691 5,696,808 (337,762) 4,676,235 ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Operations.................... 12,015,519 3,147,870 (8,517,089) (13,352,332) ----------- ----------- ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (48,821) (103,863) -- -- Net Realized Gains............... -- -- -- (2,169,111) ----------- ----------- ------------ ------------ Decrease in Net Assets From Distributions to Shareholders.................. (48,821) (103,863) -- (2,169,111) ----------- ----------- ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... -- 9,780,206 27,768,744 38,859,185 Value of Shares Redeemed......... (3,198,494) (4,506,944) (25,822,940) (21,346,195) ----------- ----------- ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (3,198,494) 5,273,262 1,945,804 17,512,990 ----------- ----------- ------------ ------------ Increase (Decrease) in Net Assets...................... 8,768,204 8,317,269 (6,571,285) 1,991,547 NET ASSETS--BEGINNING OF PERIOD.... 21,758,772 13,441,503 18,509,694 16,518,147 ----------- ----------- ------------ ------------ NET ASSETS--END OF PERIOD(1)....... $30,526,976 $21,758,772 $ 11,938,409 $ 18,509,694 =========== =========== ============ ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 8,563 $ -- $ (55,675) $ -- =========== =========== ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. -- 550,000 750,000 450,000 Shares Redeemed.................. (100,000) (200,000) (700,000) (200,000) Shares Outstanding, Beginning of Period........................ 800,000 450,000 400,000 150,000 ----------- ----------- ------------ ------------ Shares Outstanding, End of Period........................ 700,000 800,000 450,000 400,000 =========== =========== ============ ============
See Notes to Financial Statements. 68 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT RYDEX INVERSE 2X S&P SELECT SECTOR ENERGY ETF SECTOR ENERGY ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income (Loss)..... $ 36,383 $ 83,018 $ (4,444) $ (13,124) Net Realized Gain (Loss)......... 1,949,105 148,455 (349,553) (4,856,512) Net Change in Unrealized Appreciation (Depreciation) on Investments................... (206,916) 888,052 38,594 2,974,766 ----------- ----------- ---------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... 1,778,572 1,119,525 (315,403) (1,894,870) ----------- ----------- ---------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (40,599) (83,944) -- -- Net Realized Gains............... -- -- -- (4,324,132) ----------- ----------- ---------- ----------- Decrease in Net Assets From Distributions to Shareholders.................. (40,599) (83,944) -- (4,324,132) ----------- ----------- ---------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 4,107,882 6,146,803 447,516 2,080,221 Value of Shares Purchased through Dividend Reinvestments........ 20 244 -- -- Value of Shares Redeemed......... (5,286,373) (586,171) -- -- ----------- ----------- ---------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (1,178,471) 5,560,876 447,516 2,080,221 ----------- ----------- ---------- ----------- Increase (Decrease) in Net Assets...................... 559,502 6,596,457 132,113 (4,138,781) NET ASSETS--BEGINNING OF PERIOD.... 10,640,252 4,043,795 1,456,758 5,595,539 ----------- ----------- ---------- ----------- NET ASSETS--END OF PERIOD(1)....... $11,199,754 $10,640,252 $1,588,871 $ 1,456,758 =========== =========== ========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ (4,159) $ 57 $ (4,444) $ -- =========== =========== ========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 200,000 400,000 100,000 200,000 Shares Purchased through Dividend Reinvestments................. 1 16 -- -- Shares Redeemed.................. (250,000) (50,000) -- -- Shares Outstanding, Beginning of Period........................ 550,016 200,000 250,000 50,000 ----------- ----------- ---------- ----------- Shares Outstanding, End of Period........................ 500,017 550,016 350,000 250,000 =========== =========== ========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 69 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT RYDEX INVERSE 2X S&P SELECT SECTOR FINANCIAL ETF SECTOR FINANCIAL ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income (Loss)..... $ 39,804 $ 142,453 $ (31,065) $ (39,564) Net Realized Gain (Loss)......... 4,855,581 (190,082) (3,517,173) (10,045,813) Net Change in Unrealized Appreciation on Investments... 426,217 4,006,939 361,740 3,318,704 ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations.................... 5,321,602 3,959,310 (3,186,498) (6,766,673) ----------- ------------ ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (29,311) (166,185) -- -- Net Realized Gains............... -- -- -- (1,661,947) ----------- ------------ ----------- ------------ Decrease in Net Assets From Distributions to Shareholders.................. (29,311) (166,185) -- (1,661,947) ----------- ------------ ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... -- 13,456,148 2,921,757 26,033,289 Value of Shares Purchased through Dividend Reinvestments........ 388 2,108 -- 3,296 Value of Shares Redeemed......... (837,540) (10,518,542) -- (16,847,204) ----------- ------------ ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (837,152) 2,939,714 2,921,757 9,189,381 ----------- ------------ ----------- ------------ Increase (Decrease) in Net Assets...................... 4,455,139 6,732,839 (264,741) 760,761 NET ASSETS--BEGINNING OF PERIOD.... 17,343,109 10,610,270 7,924,567 7,163,806 ----------- ------------ ----------- ------------ NET ASSETS--END OF PERIOD(1)....... $21,798,248 $ 17,343,109 $ 7,659,826 $ 7,924,567 =========== ============ =========== ============ (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 13,524 $ 3,031 $ (31,065) $ -- =========== ============ =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Purchased................. -- 1,900,000 500,000 1,350,000 Shares Purchased through Dividend Reinvestments................. 31 246 -- 100 Shares Redeemed.................. (50,000) (850,000) -- (200,000) Shares Outstanding, Beginning of Period........................ 1,450,246 400,000 1,250,100 100,000 ----------- ------------ ----------- ------------ Shares Outstanding, End of Period........................ 1,400,277 1,450,246 1,750,100 1,250,100 =========== ============ =========== ============
See Notes to Financial Statements. 70 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT RYDEX INVERSE 2X S&P SELECT SECTOR SECTOR HEALTH CARE ETF HEALTH CARE ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income (Loss)..... $ 15,454 $ 49,002 $ (5,581) $ (28,871) Net Realized Gain (Loss)......... 439,207 (539,509) (477,606) (2,726,693) Net Change in Unrealized Appreciation on Investments... 135,240 239,413 40,525 1,728,947 ---------- ----------- ---------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... 589,901 (251,094) (442,662) (1,026,617) ---------- ----------- ---------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (15,335) (48,709) -- -- Net Realized Gains............... -- -- -- (2,610,366) ---------- ----------- ---------- ----------- Decrease in Net Assets From Distributions to Shareholders.................. (15,335) (48,709) -- (2,610,366) ---------- ----------- ---------- ----------- SHAREHOLDER TRANSACTIONS Value of Shares Purchased through Dividend Reinvestments........ -- 419 -- -- Value of Shares Redeemed......... -- (2,261,302) -- (2,659,386) ---------- ----------- ---------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. -- (2,260,883) -- (2,659,386) ---------- ----------- ---------- ----------- Increase (Decrease) in Net Assets...................... 574,566 (2,560,686) (442,662) (6,296,369) NET ASSETS--BEGINNING OF PERIOD.... 2,722,877 5,283,563 2,085,050 8,381,419 ---------- ----------- ---------- ----------- NET ASSETS--END OF PERIOD(1)....... $3,297,443 $ 2,722,877 $1,642,388 $ 2,085,050 ========== =========== ========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 1,423 $ 1,304 $ (5,581) $ -- ========== =========== ========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased through Dividend Reinvestments................. -- 9 -- -- Shares Redeemed.................. -- (50,000) -- (50,000) Shares Outstanding, Beginning of Period........................ 50,009 100,000 50,000 100,000 ---------- ----------- ---------- ----------- Shares Outstanding, End of Period........................ 50,009 50,009 50,000 50,000 ========== =========== ========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 71 STATEMENTS OF CHANGES IN NET ASSETS (concluded) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT RYDEX INVERSE 2X S&P SELECT SECTOR TECHNOLOGY ETF SECTOR TECHNOLOGY ETF ---------------------------------- ---------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED APRIL 30, 2010 YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 (UNAUDITED) OCTOBER 31, 2009 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income (Loss)..... $ 21,690 $ 37,150 $ (6,356) $ (17,584) Net Realized Gain (Loss)......... 1,505,977 554,606 (649,144) (3,839,804) Net Change in Unrealized Appreciation (Depreciation) on Investments................... (113,209) 1,339,956 66,421 1,879,566 ----------- ---------- ---------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... 1,414,458 1,931,712 (589,079) (1,977,822) ----------- ---------- ---------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (20,379) (35,536) -- -- Net Realized Gains............... -- -- -- (3,807,845) ----------- ---------- ---------- ----------- Decrease in Net Assets From Distributions to Shareholders.................. (20,379) (35,536) -- (3,807,845) ----------- ---------- ---------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Purchased... 2,725,756 1,535,941 -- 1,563,750 Value of Shares Purchased through Dividend Reinvestments........ -- 136 -- -- Value of Shares Redeemed......... (2,310,015) -- -- -- ----------- ---------- ---------- ----------- Net Increase in Net Assets Resulting From Share Transactions.................. 415,741 1,536,077 -- 1,563,750 ----------- ---------- ---------- ----------- Increase (Decrease) in Net Assets...................... 1,809,820 3,432,253 (589,079) (4,221,917) NET ASSETS--BEGINNING OF PERIOD.... 6,547,551 3,115,298 2,246,546 6,468,463 ----------- ---------- ---------- ----------- NET ASSETS--END OF PERIOD(1)....... $ 8,357,371 $6,547,551 $1,657,467 $ 2,246,546 =========== ========== ========== =========== (1) Including Undistributed (Distributions in Excess) of Net Investment Income................ $ 7,570 $ 6,259 $ (6,356) $ -- =========== ========== ========== =========== CHANGES IN SHARES OUTSTANDING: Shares Purchased................. 50,000 50,000 -- 50,000 Shares Purchased through Dividend Reinvestments................. -- 5 -- -- Shares Redeemed.................. (50,000) -- -- -- Shares Outstanding, Beginning of Period........................ 150,005 100,000 100,000 50,000 ----------- ---------- ---------- ----------- Shares Outstanding, End of Period........................ 150,005 150,005 100,000 100,000 =========== ========== ========== ===========
See Notes to Financial Statements. 72 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX 2X S&P 500 ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 28.22 $ 27.65 $ 75.00 -------- -------- -------- Net Investment Income**...................... 0.15 0.31 0.61 Net Realized and Unrealized Gain (Loss) on Investments................................ 8.83 0.57 (47.27) -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS............. 8.98 0.88 (46.66) -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........................ (0.16) (0.31) (0.69) -------- -------- -------- NET ASSET VALUE AT END OF PERIOD............. $ 37.04 $ 28.22 $ 27.65 ======== ======== ======== TOTAL RETURN***.............................. 31.87% 3.51% (62.68)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $111,121 $117,126 $113,364 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.70% 0.70%**** Net Investment Income........................ 0.94%**** 1.43% 1.35%**** Portfolio Turnover Rate+..................... 13% 69% 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 73 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P 500 ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 66.76 $ 132.21 $ 75.00 ------- -------- ------- Net Investment Income (Loss)**............... (0.19) (0.61) 1.04 Net Realized and Unrealized Gain (Loss) on Investments................................ (18.26) (46.79) 57.20 ------- -------- ------- TOTAL FROM INVESTMENT OPERATIONS............. (18.45) (47.40) 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............. $ 48.31 $ 66.76 $132.21 ======= ======== ======= TOTAL RETURN***.............................. (27.63)% (41.45)% 78.27% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $86,964 $103,474 $66,106 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ (0.68)%**** (0.64)% 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. 74 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P MIDCAP 400 ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 31.16 $ 27.40 $ 75.00 ------- ------- ------- Net Investment Income**...................... 0.13 0.18 0.56 Net Realized and Unrealized Gain (Loss) on Investments................................ 17.08 3.76 (47.62) ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. 17.21 3.94 (47.06) ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........................ (0.13) (0.18) (0.53) Capital...................................... -- -- (0.01) ------- ------- ------- Total Distributions.......................... (0.13) (0.18) (0.54) ------- ------- ------- NET ASSET VALUE AT END OF PERIOD............. $ 48.24 $ 31.16 $ 27.40 ======= ======= ======= TOTAL RETURN***.............................. 55.28% 14.60% (63.12)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $21,709 $14,023 $ 5,480 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ 0.64%**** 0.71% 0.94%**** Portfolio Turnover Rate+..................... 7% 84% 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 75 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P MIDCAP 400 ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 37.61 $131.92 $ 75.00 ------- ------- ------- Net Investment Income (Loss)**............... (0.10) (0.39) 1.40 Contribution from Advisor.................... -- -- 1.17 Net Realized and Unrealized Gain (Loss) on Investments................................ (14.69) (50.10) 55.83 ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. (14.79) (50.49) 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............. $ 22.82 $ 37.61 $131.92 ======= ======= ======= TOTAL RETURN***.............................. (39.31)% (55.74)% 78.90%(a) RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $ 3,423 $ 5,641 $ 6,596 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ (0.69)%**** (0.64)% 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 77.13%. See Notes to Financial Statements. 76 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X RUSSELL 2000 ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 27.20 $ 29.87 $ 75.00 ------- ------- ------- Net Investment Income**...................... 0.08 0.14 0.51 Net Realized and Unrealized Gain (Loss) on Investments................................ 16.40 (2.67) (45.09) ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. 16.48 (2.53) (44.58) ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........................ (0.07) (0.14) (0.55) ------- ------- ------- NET ASSET VALUE AT END OF PERIOD............. $ 43.61 $ 27.20 $ 29.87 ======= ======= ======= TOTAL RETURN***.............................. 60.63% (8.36)% (59.79)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $30,527 $21,759 $13,442 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.70% 0.71%**** Net Investment Income........................ 0.45%**** 0.62% 0.93%**** Portfolio Turnover Rate+..................... 7% 124% 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 77 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X RUSSELL 2000 ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 46.27 $110.12 $ 75.00 ------- ------- ------- Net Investment Income (Loss)**............... (0.12) (0.45) 1.21 Contribution from Advisor.................... -- -- 1.29 Net Realized and Unrealized Gain (Loss) on Investments................................ (19.62) (48.94) 33.76 ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. (19.74) (49.39) 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............. $ 26.53 $ 46.27 $110.12 ======= ======= ======= TOTAL RETURN***.............................. (42.67)% (51.17)% 48.79%(a) RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $11,938 $18,510 $16,518 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ (0.68)%**** (0.63)% 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. 78 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT SECTOR ENERGY ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 19.35 $ 20.22 $ 75.00 ------- ------- ------- Net Investment Income**...................... 0.08 0.18 0.09 Net Realized and Unrealized Gain (Loss) on Investments................................ 3.07 (0.88) (54.72) ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. 3.15 (0.70) (54.63) ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........................ (0.10) (0.17) (0.15) ------- ------- ------- NET ASSET VALUE AT END OF PERIOD............. $ 22.40 $ 19.35 $ 20.22 ======= ======= ======= TOTAL RETURN***.............................. 16.36% (3.21)% (72.94)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $11,200 $10,640 $ 4,044 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.70% 0.71%**** Net Investment Income........................ 0.77%**** 1.11% 0.44%**** Portfolio Turnover Rate+..................... 16% 123% 105%
* The Fund commenced operations on June 10, 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 79 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P SELECT SECTOR ENERGY ETF ------------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD...... $ 5.83 $111.91 $ 75.00 ------- ------- ------- Net Investment Income (Loss)**.............. (0.02) (0.08) 0.22 Net Realized and Unrealized Gain (Loss) on Investments............................... (1.27) (19.52) 37.09 ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............ (1.29) (19.60) 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............ $ 4.54 $ 5.83 $111.91 ======= ======= ======= TOTAL RETURN***............................. (22.10)% (57.39)% 49.75% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).................................. $ 1,589 $ 1,457 $ 5,596 RATIO TO AVERAGE NET ASSETS OF: Expenses.................................... 0.71%**** 0.70% 0.71%**** Net Investment Income....................... (0.69)%**** (0.62)% 0.55%****
* The Fund commenced operations on June 10, 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. 80 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P SELECT SECTOR FINANCIAL ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 11.96 $ 26.53 $ 75.00 ------- ------- ------- Net Investment Income**...................... 0.03 0.09 0.45 Net Realized and Unrealized Gain (Loss) on Investments................................ 3.60 (14.48) (48.76) ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. 3.63 (14.39) (48.31) ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........................ (0.02) (0.18) (0.16) ------- ------- ------- NET ASSET VALUE AT END OF PERIOD............. $ 15.57 $ 11.96 $ 26.53 ======= ======= ======= TOTAL RETURN***.............................. 30.38% (54.21)% (64.51)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $21,798 $17,343 $10,610 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ 0.41%**** 0.92% 2.60%**** Portfolio Turnover Rate+..................... 16% 205% 177%
* The Fund commenced operations on June 10, 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 FINANCIAL ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 6.34 $ 71.64 $75.00 ------- ------- ------ Net Investment Income (Loss)**............... (0.02) (0.08) 0.16 Net Realized and Unrealized Gain (Loss) on Investments................................ (1.94) (31.98) (3.34) ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS............. (1.96) (32.06) (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............. $ 4.38 $ 6.34 $71.64 ======= ======= ====== TOTAL RETURN***.............................. (30.96)% (82.23)% (4.19)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $ 7,660 $ 7,925 $7,164 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.70% 0.71%**** Net Investment Income........................ (0.69)%**** (0.63)% 0.52%****
* The Fund commenced operations on June 10, 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 HEALTH CARE ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $54.45 $52.84 $ 75.00 ------ ------ ------- Net Investment Income**...................... 0.31 0.63 0.23 Net Realized and Unrealized Gain (Loss) on Investments................................ 11.49 1.63 (22.17) ------ ------ ------- TOTAL FROM INVESTMENT OPERATIONS............. 11.80 2.26 (21.94) ------ ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........................ (0.31) (0.65) (0.22) ------ ------ ------- NET ASSET VALUE AT END OF PERIOD............. $65.94 $54.45 $ 52.84 ====== ====== ======= TOTAL RETURN***.............................. 21.64% 4.45% (29.33)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $3,297 $2,723 $ 5,284 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ 0.92%**** 1.35% 0.81%**** Portfolio Turnover Rate+..................... 8% 56% 35%
* The Fund commenced operations on June 10, 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 HEALTH CARE ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 41.70 $ 83.81 $75.00 ------- ------- ------ Net Investment Income (Loss)**............... (0.11) (0.37) 0.16 Net Realized and Unrealized Gain (Loss) on Investments................................ (8.74) (15.64) 8.84 ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS............. (8.85) (16.01) 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............. $ 32.85 $ 41.70 $83.81 ======= ======= ====== TOTAL RETURN***.............................. (21.23)% (26.55)% 12.04% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $ 1,642 $ 2,085 $8,381 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.70% 0.71%**** Net Investment Income........................ (0.69)%**** (0.63)% 0.54%****
* The Fund commenced operations on June 10, 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 TECHNOLOGY ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $43.65 $31.15 $ 75.00 ------ ------ ------- Net Investment Income**...................... 0.16 0.30 0.16 Net Realized and Unrealized Gain (Loss) on Investments................................ 12.07 12.49 (43.90) ------ ------ ------- TOTAL FROM INVESTMENT OPERATIONS............. 12.23 12.79 (43.74) ------ ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........................ (0.17) (0.29) (0.11) ------ ------ ------- NET ASSET VALUE AT END OF PERIOD............. $55.71 $43.65 $ 31.15 ====== ====== ======= TOTAL RETURN***.............................. 28.04% 41.45% (58.36)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $8,357 $6,548 $ 3,115 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ 0.63%**** 0.90% 0.72%**** Portfolio Turnover Rate+..................... 13% 43% 65%
* The Fund commenced operations on June 10, 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 (concluded) --------------------------------------------------------------------------------
RYDEX INVERSE 2X S&P SELECT SECTOR TECHNOLOGY ETF ----------------------------------------------------- SIX MONTHS ENDED APRIL 30, 2010 YEAR ENDED YEAR ENDED (UNAUDITED) OCTOBER 31, 2009 OCTOBER 31, 2008* ---------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD....... $ 22.47 $129.37 $ 75.00 ------- ------- ------- Net Investment Income (Loss)**............... (0.06) (0.27) 0.18 Net Realized and Unrealized Gain (Loss) on Investments................................ (5.84) (30.47) 54.37 ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. (5.90) (30.74) 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............. $ 16.57 $ 22.47 $129.37 ======= ======= ======= TOTAL RETURN***.............................. (26.22)% (57.07)% 72.79% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).. $ 1,657 $ 2,247 $ 6,468 RATIO TO AVERAGE NET ASSETS OF: Expenses..................................... 0.71%**** 0.71% 0.71%**** Net Investment Income........................ (0.69)%**** (0.63)% 0.48%****
* The Fund commenced operations on June 10, 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 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2010 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940 (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2010, 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 daily 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 daily 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 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 ("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 SEMI-ANNUAL REPORT 87 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- valued at the NASDAQ Official Closing Price. The Funds invest in money market mutual funds, which are valued at their Net asset value per share (NAV). Investments for which market quotations are not readily are fair valued as determine in good faith by Rydex Investments, an affiliated entity, 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. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer. C. 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. 88 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- 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. Since futures are exchange-traded and the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default, there is minimal counterparty credit risk to the Funds. 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. Since swaps are not exchange-traded, there is an element of counterparty credit risk to the Funds. The risk is managed through the terms of the swap contracts which include trigger points to terminate the current contract based on pre-determined thresholds and limit the amount of potential loss. 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 2008 - 2009), 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, 2010, 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, 2010 are disclosed in the Fund's Statement of Operations. SEMI-ANNUAL REPORT 89 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- At April 30, 2010, 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:
IDENTIFIED GROSS UNREALIZED GROSS UNREALIZED NET UNREALIZED COST APPRECIATION DEPRECIATION APPRECIATION ----------- ---------------- ---------------- -------------- Rydex 2x S&P 500 ETF................. $80,361,065 $18,891,279 $(740,005) $18,151,274 Rydex Inverse 2x S&P 500 ETF......... 58,930,000 -- -- -- Rydex 2x S&P MidCap 400 ETF.......... 13,819,140 5,720,762 (32,487) 5,688,275 Rydex Inverse 2x S&P MidCap 400 ETF.. 2,199,000 -- -- -- Rydex 2x Russell 2000(R) ETF......... 20,426,546 7,929,776 (294,606) 7,635,170 Rydex Inverse 2x Russell 2000(R) ETF................................ 7,356,000 -- -- -- Rydex 2x S&P Select Sector Energy ETF................................ 7,872,974 1,593,240 (2,180) 1,591,060 Rydex Inverse 2x S&P Select Sector Energy ETF......................... 1,118,000 -- -- -- Rydex 2x S&P Select Sector Financial ETF................................ 11,215,805 7,354,289 (9,885) 7,344,404 Rydex Inverse 2x S&P Select Sector Financial ETF...................... 4,390,000 -- -- -- Rydex 2x S&P Select Sector Health Care ETF........................... 2,495,089 397,980 (38,078) 359,902 Rydex Inverse 2x S&P Select Sector Health Care ETF.................... 1,138,000 -- -- -- Rydex 2x S&P Select Sector Technology ETF................................ 6,134,092 1,030,462 (74,534) 955,928 Rydex Inverse 2x S&P Select Sector Technology ETF..................... 863,000 -- -- --
H. FAIR VALUE MEASUREMENT In accordance with U.S. generally accepted accounting principles, fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. A three-tier hierarchy is utilized to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. 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. 90 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- The following table summarizes the inputs used to value the Funds' net assets as of April 30, 2010:
LEVEL 1 LEVEL 2 LEVEL 1 OTHER LEVEL 2 OTHER LEVEL 3 INVESTMENTS FINANCIAL INVESTMENTS FINANCIAL INVESTMENTS FUND IN SECURITIES INSTRUMENTS IN SECURITIES INSTRUMENTS IN SECURITIES+ TOTAL ---- ------------- ----------- ------------- ----------- -------------- ----------- ASSETS Rydex 2x S&P 500 ETF.................. $98,512,339 $931,422 $-- $ -- $-- $99,443,761 Rydex Inverse 2x S&P 500 ETF.......... 58,930,000 -- -- 2,369,032 -- 61,299,032 Rydex 2x S&P MidCap 400 ETF........... 19,507,415 413,976 -- -- -- 19,921,391 Rydex Inverse 2x S&P MidCap 400 ETF... 2,199,000 -- -- 117,536 -- 2,316,536 Rydex 2x Russell 2000 ETF............. 28,061,716 572,767 -- -- -- 28,634,483 Rydex Inverse 2x Russell 2000 ETF..... 7,356,000 -- -- 487,935 -- 7,843,935 Rydex 2x S&P Select Sector Energy ETF................................. 9,464,034 -- -- -- -- 9,464,034 Rydex Inverse 2x S&P Select Sector Energy ETF.......................... 1,118,000 -- -- 38,593 -- 1,156,593 Rydex 2x S&P Select Sector Financial ETF................................. 18,560,209 -- -- -- -- 18,560,209 Rydex Inverse 2x S&P Select Sector Financial ETF....................... 4,390,000 -- -- 361,741 -- 4,751,741 Rydex 2x S&P Select Sector Health Care ETF................................. 2,854,991 -- -- -- -- 2,854,991 Rydex Inverse 2x S&P Select Sector Health Care ETF..................... 1,138,000 -- -- 40,525 -- 1,178,525 Rydex 2x S&P Select Sector Technology ETF................................. 7,090,020 -- -- -- -- 7,090,020 Rydex Inverse 2x S&P Select Sector Technology ETF...................... 863,000 -- -- 66,421 -- 929,421 LIABILITIES Rydex 2x S&P 500 ETF.................. -- -- -- 1,900,965 -- 1,900,965 Rydex Inverse 2x S&P 500 ETF.......... -- 541,683 -- -- -- 541,683 Rydex 2x S&P MidCap 400 ETF........... -- -- -- 387,324 -- 387,324 Rydex Inverse 2x S&P MidCap 400 ETF... -- 21,282 -- -- -- 21,282 Rydex 2x Russell 2000 ETF............. -- -- -- 708,894 -- 708,894 Rydex Inverse 2x Russell 2000 ETF..... -- 132,761 -- -- -- 132,761 Rydex 2x S&P Select Sector Energy ETF................................. -- -- -- 164,786 -- 164,786 Rydex Inverse 2x S&P Select Sector Energy ETF.......................... -- -- -- -- -- -- Rydex 2x S&P Select Sector Financial ETF................................. -- -- -- 667,868 -- 667,868 Rydex Inverse 2x S&P Select Sector Financial ETF....................... -- -- -- -- -- -- Rydex 2x S&P Select Sector Health Care ETF................................. -- -- -- 48,886 -- 48,886 Rydex Inverse 2x S&P Select Sector Health Care ETF..................... -- -- -- -- -- -- Rydex 2x S&P Select Sector Technology ETF................................. -- -- -- 215,058 -- 215,058 Rydex Inverse 2x S&P Select Sector Technology ETF...................... -- -- -- -- -- --
-------- * Other financial instruments may include futures contracts and /or swap agreements, which are reported as unrealized gain/loss at year end. + For the six months ended April 30, 2010, the Level 3 Investments were acquired at zero cost and are carried at zero value. I. DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES U.S. generally accepted accounting principles require disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds' financial position and results of operations. None of the derivatives currently held by the Funds are being used as hedging instruments. Each Leveraged Fund employs as its investment strategy a program of 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. Equity index swaps and futures, and options contracts enable the Fund to create the additional needed exposure to pursue its investment objective. The notional amount of derivative instruments outstanding generally will approximate 100% of a Leveraged Fund's net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives. Each Leveraged Inverse Fund employs as its investment strategy a program of investing in leveraged derivative instruments, such as equity index swaps, futures contracts and options on securities, futures contracts, and stock indices. Equity index swaps and futures, and options contracts enable the Fund to pursue its objective without selling short each of the securities included in the Underlying SEMI-ANNUAL REPORT 91 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- Index. The notional amount of derivative instruments outstanding generally will approximate 200% of a Leveraged Inverse Fund's net assets on a daily basis, while the risk to the Fund is limited to the profit earned on such derivatives.
APPROXIMATE PERCENTAGE OF FUNDS' NET ASSETS ON FUND A DAILY BASIS ---- ----------------------- Rydex 2x S&P 500 ETF.......................................... 117% Rydex Inverse 2x S&P 500 ETF.................................. 200% Rydex 2x S&P MidCap 400 ETF................................... 118% Rydex Inverse 2x S&P MidCap 400 ETF........................... 199% Rydex 2x Russell 2000(R) ETF.................................. 117% Rydex Inverse 2x Russell 2000(R) ETF.......................... 200% Rydex 2x S&P Select Sector Energy ETF......................... 116% Rydex Inverse 2x S&P Select Sector Energy ETF................. 200% Rydex 2x S&P Select Sector Financial ETF...................... 116% Rydex Inverse 2x S&P Select Sector Financial ETF.............. 199% Rydex 2x S&P Select Sector Health Care ETF.................... 113% Rydex Inverse 2x S&P Select Sector Health Care ETF............ 199% Rydex 2x S&P Select Sector Technology ETF..................... 117% Rydex Inverse 2x S&P Select Sector Technology ETF............. 198%
DERIVATIVE INVESTMENT HOLDINGS CATEGORIZED BY RISK EXPOSURE The following is a summary of the location of derivative investments on the Funds' Statements of Assets and Liabilities as of April 30, 2010:
LOCATION ON THE STATEMENTS OF ASSETS AND LIABILITIES ------------------------------------------------------------------ DERIVATIVE INVESTMENTS TYPE ASSET LIABILITY --------------------------- -------------------------------- ------------------------------- Equity Index Swap Contracts............ Unrealized Appreciation on Swap Unrealized Depreciation on Swap Agreements Agreements Equity Index Futures Contracts......... Receivables: Variation Margin on Payables: Variation Margin on Futures Contracts Futures Contracts
Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for under hedge accounting. The following table sets forth the fair value, on a gross basis of the asset and liability components of the Funds' derivative contracts by primary risk exposure as of April 30, 2010:
ASSET DERIVATIVE INVESTMENTS VALUE ---------------------------------------------------- TOTAL VALUE AT EQUITY INDEX EQUITY INDEX PORTFOLIO APRIL 30, 2010 SWAP CONTRACTS FUTURES CONTRACTS* --------- -------------- -------------- ------------------ Rydex 2x S&P 500 ETF.......................... $ 931,422 $ -- $931,422 Rydex Inverse 2x S&P 500 ETF.................. 2,369,032 2,369,032 -- Rydex 2x MidCap 400 ETF....................... 413,976 -- 413,976 Rydex Inverse 2x S&P MidCap 400 ETF........... 117,536 117,536 -- Rydex 2x Russell 2000 ETF..................... 572,767 -- 572,767 Rydex Inverse 2x Russell 2000 ETF............. 487,935 487,935 -- Rydex 2x S&P Select Sector Energy ETF......... -- -- -- Rydex Inverse 2x S&P Select Sector Energy ETF......................................... 38,593 38,593 -- Rydex 2x S&P Select Sector Financial ETF...... -- -- -- Rydex Inverse 2x S&P Select Sector Financial ETF......................................... 361,741 361,741 -- Rydex 2x S&P Select Sector Health Care ETF.... -- -- -- Rydex Inverse 2x S&P Select Sector Health Care ETF......................................... 40,525 40,525 -- Rydex 2x S&P Select Sector Technology ETF..... -- -- -- Rydex Inverse 2x S&P Select Sector Technology ETF......................................... 66,421 66,421 --
92 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
LIABILITY DERIVATIVE INVESTMENTS VALUE ---------------------------------------------------- TOTAL VALUE AT EQUITY INDEX EQUITY INDEX PORTFOLIO APRIL 30, 2010 SWAP CONTRACTS FUTURES CONTRACTS* --------- -------------- -------------- ------------------ Rydex 2x S&P 500 ETF.......................... $1,900,965 $1,900,965 $ -- Rydex Inverse 2x S&P 500 ETF.................. 541,683 -- 541,683 Rydex 2x MidCap 400 ETF....................... 387,324 387,324 -- Rydex Inverse 2x S&P MidCap 400 ETF........... 21,282 -- 21,282 Rydex 2x Russell 2000 ETF..................... 708,894 708,894 -- Rydex Inverse 2x Russell 2000 ETF............. 132,761 -- 132,761 Rydex 2x S&P Select Sector Energy ETF......... 164,786 164,786 -- Rydex Inverse 2x S&P Select Sector Energy ETF......................................... -- -- -- Rydex 2x S&P Select Sector Financial ETF...... 667,868 667,868 -- Rydex Inverse 2x S&P Select Sector Financial ETF......................................... -- -- -- Rydex 2x S&P Select Sector Health Care ETF.... 48,886 48,886 -- Rydex Inverse 2x S&P Select Sector Health Care ETF......................................... -- -- -- Rydex 2x S&P Select Sector Technology ETF..... 215,058 215,058 -- Rydex Inverse 2x S&P Select Sector Technology ETF......................................... -- -- --
-------- * Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilities. The following is a summary of the location of derivative investments on the Funds' Statements of Operations as of April 30, 2010:
DERIVATIVE INVESTMENT TYPE LOCATION OF GAIN (LOSS) ON DERIVATIVES -------------------------- ----------------------------------------- Equity Index Swap Contracts.............. Net Realized Gain (Loss) From: Swap Contracts Net Change in Unrealized Appreciation (Depreciation) on: Swap Contracts Futures Contracts........................ Net Realized Gain (Loss) From: Futures Contracts Net Change in Unrealized Appreciation (Depreciation) on: Futures Contracts
The following is a summary of the Funds' realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of April 30, 2010:
REALIZED GAIN (LOSS) ON DERIVATIVE INVESTMENTS RECOGNIZED IN THE STATEMENT OF OPERATIONS --------------------------------------------------- TOTAL VALUE AT EQUITY INDEX EQUITY INDEX PORTFOLIO APRIL 30, 2010 SWAP CONTRACTS FUTURES CONTRACTS --------- -------------- -------------- ----------------- Rydex 2x S&P 500 ETF........................... $ 19,461,408 $ 16,437,078 $ 3,024,330 Rydex Inverse 2x S&P 500 ETF................... (32,866,583) (22,780,296) (10,086,287) Rydex 2x MidCap 400 ETF........................ 4,259,193 3,130,306 1,128,887 Rydex Inverse 2x S&P MidCap 400 ETF............ (2,226,395) (1,827,902) (398,493) Rydex 2x Russell 2000 ETF...................... 6,504,161 4,920,734 1,583,427 Rydex Inverse 2x Russell 2000 ETF.............. (8,123,267) (6,522,924) (1,600,343) Rydex 2x S&P Select Sector Energy ETF.......... 1,205,555 1,205,555 -- Rydex Inverse 2x S&P Select Sector Energy ETF.. (349,515) (349,515) -- Rydex 2x S&P Select Sector Financial ETF....... 3,731,137 3,731,137 -- Rydex Inverse 2x S&P Select Sector Financial ETF.......................................... (3,516,882) (3,516,882) -- Rydex 2x S&P Select Sector Health Care ETF..... 400,889 400,889 -- Rydex Inverse 2x S&P Select Sector Health Care ETF.......................................... (477,565) (477,565) -- Rydex 2x S&P Select Sector Technology ETF...... 1,061,242 1,061,242 -- Rydex Inverse 2x S&P Select Sector Technology ETF.......................................... (649,087) (649,087) --
SEMI-ANNUAL REPORT 93 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 --------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVE INVESTMENTS RECOGNIZED IN THE STATEMENT OF OPERATIONS ------------------------------------------------------------- TOTAL VALUE AT EQUITY INDEX EQUITY INDEX PORTFOLIO APRIL 30, 2010 SWAP CONTRACTS FUTURES CONTRACTS --------- -------------- -------------- ----------------- Rydex 2x S&P 500 ETF..................... $ (733,046) $(1,900,962) $1,167,916 Rydex Inverse 2x S&P 500 ETF............. 1,769,828 2,369,027 (599,199) Rydex 2x MidCap 400 ETF.................. 315,981 (387,318) 703,299 Rydex Inverse 2x S&P MidCap 400 ETF...... 23,720 117,536 (93,816) Rydex 2x Russell 2000 ETF................ 602,659 (708,891) 1,311,550 Rydex Inverse 2x Russell 2000 ETF........ (337,762) 487,935 (825,697) Rydex 2x S&P Select Sector Energy ETF.... (164,785) (164,785) -- Rydex Inverse 2x S&P Select Sector Energy ETF.................................... 38,594 38,594 -- Rydex 2x S&P Select Sector Financial ETF.................................... (667,868) (667,868) -- Rydex Inverse 2x S&P Select Sector Financial ETF.......................... 361,740 361,740 -- Rydex 2x S&P Select Sector Health Care ETF.................................... (48,885) (48,885) -- Rydex Inverse 2x S&P Select Sector Health Care ETF............................... 40,525 40,525 -- Rydex 2x S&P Select Sector Technology ETF.................................... (215,058) (215,058) -- Rydex Inverse 2x S&P Select Sector Technology ETF......................... 66,421 66,421 --
J. 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. K. 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. L. RISK Throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience the Funds expect the risk of loss to be remote. M. NEW ACCOUNTING PRONOUNCEMENTS In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented in Note 2E. The new disclosures and clarifications of existing disclosures are generally effective for the Funds' year ending October 31, 2011 and interim periods therein. Management is evaluating the impact of this update on current 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 94 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) April 30, 2010 -------------------------------------------------------------------------------- relevant index. For these services, the Advisor receives a management 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%
The Advisor 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., an affiliated entity, (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, 2010, 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
SEMI-ANNUAL REPORT 95 NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded) April 30, 2010 -------------------------------------------------------------------------------- 5. INVESTMENT TRANSACTIONS For the six months ended April 30, 2010 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex 2x S&P 500 ETF....................................... $9,865,322 $16,237,649 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............................... -- 2,582,928 Rydex Inverse 2x Russell 2000(R) ETF....................... -- -- Rydex 2x S&P Select Sector Energy ETF...................... 3,276,608 879,951 Rydex Inverse 2x S&P Select Sector Energy ETF.............. -- -- Rydex 2x S&P Select Sector Financial ETF................... -- 666,203 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.................. 2,175,066 1,844,534 Rydex Inverse 2x S&P Select Sector Technology ETF.......... -- --
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........................................ $11,473,923 $24,012,480 Rydex Inverse 2x S&P 500 ETF................................ -- -- Rydex 2x S&P MidCap 400 ETF................................. 4,406,417 1,065,039 Rydex Inverse 2x S&P MidCap 400 ETF......................... -- -- Rydex 2x Russell 2000(R) ETF................................ 6,012,987 1,402,020 Rydex Inverse 2x Russell 2000(R) ETF........................ -- -- Rydex 2x S&P Select Sector Energy ETF....................... 1,337,342 3,869,757 Rydex Inverse 2x S&P Select Sector Energy ETF............... -- -- Rydex 2x S&P Select Sector Financial ETF.................... 4,701,173 2,618,517 Rydex Inverse 2x S&P Select Sector Financial ETF............ -- -- Rydex 2x S&P Select Sector Health Care ETF.................. 482,370 206,713 Rydex Inverse 2x S&P Select Sector Health Care ETF.......... -- -- Rydex 2x S&P Select Sector Technology ETF................... 1,347,189 750,443 Rydex Inverse 2x S&P Select Sector Technology ETF........... -- --
6. SUBSEQUENT EVENTS Management has evaluated events or transactions that may have occurred since April 30, 2010, that would merit recognition or disclosure in the financial statements. This evaluation was completed through June xx, 2010, the date the financial statements were available to be issued. As of May 21, 2010, the following Funds discontinued trading and on May 28, 2010 were liquidated: 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. The closure of these ETFs did not impact the operations of any remaining Rydex ETFs. 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, 2009 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. PENDING ACQUISITION TRANSACTION On February 16, 2010, Security Benefit Corporation ("SBC"), the parent company of PADCO Advisors, Inc., PADCO Advisors II, Inc. and Security Investors, LLC, the Funds' investment advisers, as applicable (the "Investment Advisers"), and certain of SBC's affiliates entered into agreements with an investor group (the "Investors") led by Guggenheim Partners, LLC ("Guggenheim"). Under the agreements, a special purpose vehicle owned by the Investors and managed by an affiliate of Guggenheim would receive a 100% ownership stake in SBC and consequently acquire control of the Investment Advisers and affiliates (the "Purchase Transaction"). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction should not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. While the parties expect the Purchase Transaction's closing to take place on or about the end of the second quarter, 2010, it is subject to various conditions, and may be delayed or even terminated due to unforeseen circumstances. 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. 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 Board (1940) Rydex Dynamic Funds - 1999 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 Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment adviser (1985 to 2005) --------------------- J. KENNETH DALTON Rydex Series Funds - 1995 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 --------------------- 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 ------------------------------------------------------------------------------------
98 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (continued) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (concluded) EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- RICHARD M. GOLDMAN* President of Rydex Series Funds, Rydex President (1961) Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Chief Executive Officer and Director of Rydex Investments (2009 to present); President, Chief Executive Officer and Director of Rydex Distributors, Inc. (2009 to present); President and Chief Executive Officer of Rydex Holdings, LLC (2009 to present); Senior Vice President of Security Benefit Corp. (2007 to present); Director of First Security Benefit Life and Annuity Insurance Company of New York (2007 to present); Director of Security Distributors, Inc. (2007 to present); President of Security Investors, LLC (2007 to present); Manager and President of Security Global Investors, LLC (2007 to present); Managing Member of R.M. Goldman Partners, LLC (2006 to 2007); President and Chief Executive Officer of FortsmannLeff Associates (2003 to 2005) MICHAEL P. BYRUM* Vice President of Rydex Series Funds Vice President (1970) (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); President of Rydex Investments (2004 to present); Chief Investment Officer of Rydex Investments (2006 to present); Secretary of Rydex Investments (2002 to present); Director of Rydex Investments (2008 to present); Chief Investment Officer of Rydex Holdings, LLC (2008 to present); Vice President of Rydex Distributors, Inc. (2009 to present); Manager of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Specialized Products, LLC (2005 to 2008); Trustee of Rydex Series Funds, Rydex Variable Trust and Rydex Dynamic Funds (2005 to 2009); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2007) NICK BONOS* Vice President and Treasurer of Rydex Vice President and Treasurer (1963) Series Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2006 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2009 to present); Chief Financial Officer of Rydex Specialized Products, LLC (2005 to 2009); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006) JOANNA M. HAIGNEY* Chief Compliance Officer of 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, Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Chief Compliance Officer of Rydex Investments (2005 to present) Vice President of Compliance of Rydex Investments (2006 to present); Director of Rydex Distributors, Inc. (2009 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006) KEITH FLETCHER* Vice President of Rydex Series Funds, Vice President (1958) Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Vice President of Rydex Investments (2009 to present); Vice President of Rydex Specialized Products, LLC (2009 to present); Vice President and Director of Rydex Distributors, Inc. (2009 to present); Vice President of Security Global Investors, LLC (2009 to present)
SEMI-ANNUAL REPORT 99 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded) -------------------------------------------------------------------------------- EXECUTIVE OFFICERS (concluded)
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- AMY LEE* Vice President and Assistant Secretary of Vice President and Assistant Secretary Rydex Series Funds, Rydex Variable Trust, (1960) Rydex Dynamic Funds and Rydex ETF Trust (2009 to present); Secretary of Rydex Distributors, Inc. (2008 to present); Chief Compliance Officer of Rydex Distributors, Inc. (2008 to 2009); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Corp. (2005 to present); Vice President, Associate General Counsel and Assistant Secretary of Security Benefit Life Insurance Co. (2004 to present); Assistant General Counsel of First Security Benefit Life and Annuity Company of New York (2004 to present); Chief Compliance Officer and Secretary of Security Distributors, Inc. (2004 to present); Secretary of Security Global Investors, Inc. (2007 to present) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Manager and Chief Financial Officer of Rydex Specialized Products, LLC (2009 to present) Director of Accounting of Rydex Investments (2003 to 2004) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds and Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)
* Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a) (19) of the 1940 Act, inasmuch as this person is affiliated with Rydex Investments. [RYDEX SGI LOGO] 9601 Blackwell Road - Suite 500 - Rockville, MD 20850 www.rydex-sgi.com - 800.820.0888 ETF3-SEMI-0410X1010 ITEM 2. CODE OF ETHICS. Not applicable for a semiannual reporting period. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable for a semiannual reporting period. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable for a semiannual reporting period. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable for a semiannual reporting period. 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 1, 2010, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex ETF Trust (the "Trust") concluded that there were no significant deficiencies in the design or operation of the internal controls of 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 to record, process, summarize, and report the subject matter contained in this Report. (b) There were no significant changes in the Trust'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. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Rydex ETF Trust By (Signature and Title)* /s/ Richard M. Goldman -------------------------------------------- Richard M. Goldman, President Date July 1, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Richard M. Goldman -------------------------------------------- Richard M. Goldman, President Date July 1, 2010 By (Signature and Title)* /s/ Nick Bonos -------------------------------------------- Nick Bonos, Vice President and Treasurer Date July 1, 2010 * Print the name and title of each signing officer under his or her signature.