N-CSRS 1 b65394a1nvcsrs.txt RYDEX ETF TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811- 21261 Rydex ETF Trust -------------------------------------------- (Exact name of registrant as specified in charter) 9601 Blackwell Road, Suite 500 Rockville, Maryland 20850 -------------------------- (Address of principal executive offices) (Zip code) Carl G. Verboncoeur Rydex ETF Trust 9601 Blackwell Road, Suite 500 Rockville, Maryland 20850 ---------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 1-301-296-5100 ---------------- Date of fiscal year end: October 31, 2007 ----------------- Date of reporting period: April 30, 2007 --------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. April 30, 2007 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 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 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 [GRAPHIC] [RYDEX INVESTMENTS LOGO] SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS.................................. 2 FEES & EXPENSES............................................. 4 PORTFOLIO SUMMARY........................................... 5 SCHEDULE OF INVESTMENTS..................................... 22 STATEMENTS OF ASSETS AND LIABILITIES........................ 61 STATEMENTS OF OPERATIONS.................................... 65 STATEMENTS OF CHANGES IN NET ASSETS......................... 69 FINANCIAL HIGHLIGHTS........................................ 76 NOTES TO FINANCIAL STATEMENTS............................... 82 SUPPLEMENTAL INFORMATION.................................... 88
SEMI-ANNUAL REPORT 2 -------------------------------------------------------------------------------- DEAR SHAREHOLDER, The period ended April 30 was a positive environment for investors in nearly all asset classes. Although economic growth in the U.S. showed unmistakable signs of slowing, that was a positive development for both equity and fixed-income investors as it mitigated inflationary pressures, allowing interest rates to fall and take pressure off the Federal Reserve Bank. The global economy, on the other hand, raced ahead as the rapidly growing economies of Brazil, Russia, India and China continued their breakneck economic expansions. International equity markets surged higher and were, once again, one of the most profitable areas for investors over the past year. Despite the fact that U.S. equity markets continued to be buffeted by crosscurrents over high and volatile energy prices and uncertainty about the future course of monetary policy, equity prices rose strongly during this period. The bellwether S&P 500(R) Index rose nearly 8.60% on a total return basis, with the Dow Jones Industrial Average up an even more robust 9.41%. If there was an overriding theme to domestic equity markets during this period, it was the ongoing debate over the future direction of interest rates. It is frequently said that markets climb a wall of worry, and examination of return patterns bears this out. Investors sought exposure to stocks, but they wanted to play it safe at the same time. The defensive mindset favored value stocks. With the possibility of a damaging market reversal present in investors' minds, inexpensive stocks seemed to be the safer play. The S&P/Citigroup 500 Pure Value Index, which combines the attributes of both size and low valuations, rose 12.07% compared to a gain of 8.41% for the S&P/Citigroup 600 Small Cap Pure Growth Index. The 17.93% gain for the S&P 500 Utilities Index -- one of the strongest of all 10 of the sector indices -- reinforced the defensive orientation on the part of many investors during the period. With the pullback in stock prices in late February and early March, equities are more attractively valued now and have some room to rally going forward. That said, we think the preference for defense at home and exposure to the rapidly growing global economy is here for some time to come. Our outlook for stock prices is further enhanced if the Fed begins to cut interest rates, something we anticipate, but not until later this year. We appreciate the trust you have placed in our firm's quality and integrity by investing with us. Sincerely, /s/ DAVID C. REILLY, CFA David Reilly, CFA Director of Portfolio Strategies All sources: Bloomberg SEMI-ANNUAL REPORT 3 (This page intentionally left blank) SEMI-ANNUAL REPORT 4 -------------------------------------------------------------------------------- SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED) 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 November 1, 2006 and held for the six months ended April 30, 2007. 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 the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation and redemption fees, or brokerage charges. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID ACCOUNT ACCOUNT DURING VALUE VALUE PERIOD* 11/1/2006 4/30/2007 11/1/06 TO 4/30/07 --------- ---------- ------------------ ACTUAL Rydex S&P Equal Weight ETF................................ $1,000.00 $1,105.60 $2.09 Rydex Russell Top 50 ETF.................................. $1,000.00 $1,066.60 $1.02 Rydex S&P 500 Pure Value ETF.............................. $1,000.00 $1,118.50 $1.84 Rydex S&P 500 Pure Growth ETF............................. $1,000.00 $1,082.40 $1.81 Rydex S&P MidCap 400 Pure Value ETF....................... $1,000.00 $1,132.30 $1.85 Rydex S&P MidCap 400 Pure Growth ETF...................... $1,000.00 $1,125.40 $1.84 Rydex S&P SmallCap 600 Pure Value ETF..................... $1,000.00 $1,085.60 $1.81 Rydex S&P SmallCap 600 Pure Growth ETF.................... $1,000.00 $1,082.20 $1.81 Rydex S&P Equal Weight Consumer Discretionary ETF**....... $1,000.00 $1,095.10 $2.58 Rydex S&P Equal Weight Consumer Staples ETF**............. $1,000.00 $1,095.00 $2.58 Rydex S&P Equal Weight Energy ETF**....................... $1,000.00 $1,160.60 $2.66 Rydex S&P Equal Weight Financials ETF**................... $1,000.00 $1,075.80 $2.56 Rydex S&P Equal Weight Health Care ETF**.................. $1,000.00 $1,148.90 $2.65 Rydex S&P Equal Weight Industrials ETF**.................. $1,000.00 $1,126.40 $2.62 Rydex S&P Equal Weight Materials ETF**.................... $1,000.00 $1,178.00 $2.69 Rydex S&P Equal Weight Technology ETF**................... $1,000.00 $1,084.00 $2.57 Rydex S&P Equal Weight Utilities ETF**.................... $1,000.00 $1,159.60 $2.66 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P Equal Weight ETF................................ $1,000.00 $1,022.81 $2.01 Rydex Russell Top 50 ETF.................................. $1,000.00 $1,023.80 $1.00 Rydex S&P 500 Pure Value ETF.............................. $1,000.00 $1,023.06 $1.76 Rydex S&P 500 Pure Growth ETF............................. $1,000.00 $1,023.06 $1.76 Rydex S&P MidCap 400 Pure Value ETF....................... $1,000.00 $1,023.06 $1.76 Rydex S&P MidCap 400 Pure Growth ETF...................... $1,000.00 $1,023.06 $1.76 Rydex S&P SmallCap 600 Pure Value ETF..................... $1,000.00 $1,023.06 $1.76 Rydex S&P SmallCap 600 Pure Growth ETF.................... $1,000.00 $1,023.06 $1.76 Rydex S&P Equal Weight Consumer Discretionary ETF**....... $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Consumer Staples ETF**............. $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Energy ETF**....................... $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Financials ETF**................... $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Health Care ETF**.................. $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Industrials ETF**.................. $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Materials ETF**.................... $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Technology ETF**................... $1,000.00 $1,022.32 $2.49 Rydex S&P Equal Weight Utilities ETF**.................... $1,000.00 $1,022.32 $2.49
--------------- * Expenses are equal to the Fund's annualized expense ratio of 0.40%, 0.20%, 0.35%, 0.35%, 0.35%, 0.35%, 0.35%, 0.35%, 0.50%, 0.50%, 0.50%, 0.50%, 0.50%, 0.50%, 0.50%, 0.50% and 0.50% respectively, multiplied by the average account value of the period, multiplied by days in the period, divided by 365. ** Fund commenced operations on 11/1/06 SEMI-ANNUAL REPORT 5 Rydex S&P Equal Weight ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* --------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS --------------------------------------------------------------------------------- MEDIMMUNE, INC. 0.33% AMAZON.COM, INC. 0.30% SCHERING-PLOUGH CORP. 0.26% CUMMINS, INC. 0.25% FIRST DATA CORP. 0.25% SLM CORP. 0.24% BAKER HUGHES, INC. 0.24% PEABODY ENERGY CORP. 0.24% WHIRLPOOL CORP. 0.24% HARMAN INTERNATIONAL INDUSTRIES, INC. 0.23% ---------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 18.13 Consumer Discretionary 17.19 Information Technology 14.51 Industrials 11.58 Health Care 10.52 Consumer Staples 7.13 Utilities 6.68 Energy 6.31 Materials 5.96 Telecommunication Services 1.99
* The Fund's Top 10 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 6 Rydex Russell Top 50 ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- EXXON MOBIL CORP. 7.26% GENERAL ELECTRIC CO. 6.12% CITIGROUP, INC. 4.25% MICROSOFT CORP. 4.24% AT&T, INC. 3.88% BANK OF AMERICA CORP. 3.71% PROCTER & GAMBLE CO. 3.37% PFIZER, INC. 3.04% JOHNSON & JOHNSON 2.98% JPMORGAN CHASE & CO. 2.83% --------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 22.14 Information Technology 18.07 Health Care 14.36 Energy 11.89 Industrials 10.15 Consumer Staples 9.10 Consumer Discretionary 7.67 Telecommunication Services 6.62
* The Fund's Top 10 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 Value ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- FORD MOTOR CO. 2.32% EMBARQ CORP. 1.93% FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.70% INTEGRYS ENERGY GROUP, INC. 1.66% SUPERVALU, INC. 1.66% SANMINA-SCI CORP. 1.57% TYSON FOODS, INC. -- CLASS A 1.36% DTE ENERGY CO. 1.22% GENERAL MOTORS CORP. 1.22% DILLARD'S, INC. -- CLASS A 1.20% --------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 21.74 Utilities 21.04 Consumer Discretionary 16.15 Materials 8.91 Consumer Staples 7.84 Telecommunication Services 7.56 Industrials 6.86 Information Technology 3.95 Health Care 3.65 Energy 2.30
* The Fund's Top 10 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 8 Rydex S&P 500 Pure Growth ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- AMAZON.COM, INC. 1.84% EXPRESS SCRIPTS, INC. 1.44% HOSPIRA, INC. 1.42% XTO ENERGY, INC. 1.30% COACH, INC. 1.30% GILEAD SCIENCES, INC. 1.26% APOLLO GROUP, INC. -- CLASS A 1.22% COVENTRY HEALTH CARE, INC. 1.22% ZIMMER HOLDINGS, INC. 1.20% COGNIZANT TECHNOLOGY SOLUTIONS CORP. -- CLASS A 1.19% --------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Health Care 22.46 Consumer Discretionary 19.94 Information Technology 17.85 Energy 9.20 Consumer Staples 9.04 Industrials 8.50 Financials 8.15 Materials 4.04 Utilities 0.82
* The Fund's Top 10 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 Value ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- AVIS BUDGET GROUP, INC. 2.84% LEAR CORP. 2.39% LYONDELL CHEMICAL CO. 2.12% UNIVERSAL CORP. 2.00% FURNITURE BRANDS INTERNATIONAL, INC. 1.94% AVNET, INC. 1.90% YRC WORLDWIDE, INC. 1.67% FIRST AMERICAN CORP. 1.57% ENERGY EAST CORP. 1.57% WESTWOOD ONE, INC. 1.52% --------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 23.68 Utilities 22.48 Materials 14.89 Financials 14.80 Industrials 10.02 Information Technology 6.99 Consumer Staples 6.26 Energy 0.51 Telecommunication Services 0.37
* The Fund's Top 10 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 10 Rydex S&P Midcap 400 Pure Growth ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- AEROPOSTALE, INC. 1.79% PAR PHARMACEUTICAL COS., INC. 1.71% NVR, INC. 1.59% CHICO'S FAS, INC. 1.56% ENERGIZER HOLDINGS, INC. 1.46% CYTYC CORP. 1.45% CAREER EDUCATION CORP. 1.42% DST SYSTEMS, INC. 1.41% CORINTHIAN COLLEGES, INC. 1.38% ITT EDUCATIONAL SERVICES, INC. 1.38% --------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 29.37 Industrials 20.68 Health Care 19.51 Information Technology 8.87 Energy 8.68 Financials 8.50 Materials 2.33 Consumer Staples 1.71 Utilities 0.35
* The Fund's Top 10 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 Value ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- STEEL TECHNOLOGIES, INC. 2.14% LIBBEY, INC. 2.01% RYERSON, INC. 1.97% NASH FINCH CO. 1.97% LANDAMERICA FINANCIAL GROUP, INC. 1.53% CENTRAL VERMONT PUBLIC SERVICE CORP. 1.37% POPE & TALBOT, INC. 1.35% STANDARD MOTOR PRODUCTS, INC. 1.31% CHESAPEAKE CORP. 1.28% LA-Z-BOY, INC. 1.21% --------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 23.79 Industrials 17.26 Financials 15.95 Materials 15.55 Utilities 9.47 Information Technology 6.71 Consumer Staples 6.39 Health Care 4.88
* The Fund's Top 10 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 12 Rydex S&P Smallcap 600 Pure Growth ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------- BIOSITE, INC. 1.82% VERTRUE, INC. 1.33% FLIR SYSTEMS, INC. 1.32% WEBEX COMMUNICATIONS, INC. 1.16% PORTFOLIO RECOVERY ASSOCIATES, INC. 1.14% BANKRATE, INC. 1.12% PRE-PAID LEGAL SERVICES, INC. 1.11% POSSIS MEDICAL, INC. 1.10% J2 GLOBAL COMMUNICATIONS, INC. 1.10% INTEGRA LIFESCIENCES HOLDINGS CORP. 1.09% -------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Health Care 20.26 Consumer Discretionary 19.79 Information Technology 19.43 Industrials 15.92 Financials 9.90 Energy 8.37 Consumer Staples 4.12 Materials 1.67 Telecommunication Services 0.54
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 13 Rydex S&P Equal Weight Consumer Discretionary ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* --------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS --------------------------------------------------------------------------------- AMAZON.COM, INC. 1.73% WHIRLPOOL CORP. 1.34% HARMAN INTERNATIONAL INDUSTRIES, INC. 1.33% WENDY'S INTERNATIONAL, INC. 1.30% GOODYEAR TIRE & RUBBER CO. 1.26% SNAP-ON, INC. 1.21% TRIBUNE CO. 1.21% RADIOSHACK CORP. 1.19% TIFFANY & CO. 1.19% MCDONALD'S CORP. 1.19% ---------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Media 18.76 Specialty Retail 18.63 Household Durables 14.72 Hotels, Restaurants & Leisure 13.48 Multiline Retail 11.14 Textiles & Apparel 6.72 Leisure Equipment & Products 4.52 Automobiles 3.39 Internet & Catalog Retail 2.86 Auto Components 2.41 Diversified Consumer Services 2.28 Distributors 1.09
* The Fund's Top 10 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 14 Rydex S&P Equal Weight Consumer Staples ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* --------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS --------------------------------------------------------------------------------- SUPERVALU, INC. 2.97% CONSTELLATION BRANDS, INC. -- CLASS A 2.83% ARCHER-DANIELS-MIDLAND CO. 2.81% TYSON FOODS, INC. -- CLASS A 2.79% WM. WRIGLEY JR. CO. 2.79% KROGER CO. 2.70% COCA-COLA CO. (THE) 2.69% CVS CORP. 2.67% ALTRIA GROUP, INC. 2.64% COCA-COLA ENTERPRISES, INC. 2.64% ---------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Food Products 32.78 Food & Staples Retailing 23.26 Beverages 20.75 Household Products 10.30 Tobacco 7.71 Personal Products 5.20
* The Fund's Top 10 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 Energy ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* --------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS --------------------------------------------------------------------------------- BAKER HUGHES, INC. 3.42% PEABODY ENERGY CORP. 3.36% ROWAN COS., INC. 3.22% SMITH INTERNATIONAL, INC. 3.21% WEATHERFORD INTERNATIONAL LTD. 3.20% ANADARKO PETROLEUM CORP. 3.16% VALERO ENERGY CORP. 3.15% NATIONAL-OILWELL VARCO, INC. 3.14% CONSOL ENERGY, INC. 3.09% SCHLUMBERGER LTD. 3.09% ---------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE GRAPH) Oil, Gas & Consumable Fuels 63.11 Energy Equipment & Services 36.89
* The Fund's Top 10 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 16 Rydex S&P Equal Weight Financials ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- SLM CORP. 1.36% JANUS CAPITAL GROUP, INC. 1.31% CIT GROUP, INC. 1.22% FRANKLIN RESOURCES, INC. 1.21% XL CAPITAL LTD. -- CLASS A 1.21% MERRILL LYNCH & CO., INC. 1.19% MORGAN STANLEY 1.19% UNUMPROVIDENT CORP. 1.19% AFLAC, INC. 1.19% GOLDMAN SACHS GROUP, INC. 1.17% --------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Insurance 27.34 Commercial Banks 20.29 Capital Markets 19.59 Real Estate Investments Trusts (REITs) 13.71 Thrifts & Mortgage Finance 7.70 Diversified Financial Services 6.74 Consumer Finance 3.58 Real Estate Management & Development 1.05
* The Fund's Top 10 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 Health Care ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- MEDIMMUNE, INC. 2.94% SCHERING-PLOUGH CORP. 2.28% MANOR CARE, INC. 2.04% MERCK & CO., INC. 2.02% BAUSCH & LOMB, INC. 2.01% CELGENE CORP. 1.99% GILEAD SCIENCES, INC. 1.98% TENET HEALTHCARE CORP. 1.97% EXPRESS SCRIPTS, INC. 1.96% WYETH 1.94% --------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Health Care Providers & Services 29.10 Pharmaceuticals 26.26 Health Care Equipment & Supplies 21.42 Biotechnology 12.45 Life Science Tools & Services 9.03 Health Care Technology 1.74
* The Fund's Top 10 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 18 Rydex S&P Equal Weight Industrials ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* --------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS --------------------------------------------------------------------------------- CUMMINS, INC. 2.41% PACCAR, INC. 2.11% HONEYWELL INTERNATIONAL, INC. 2.09% CATERPILLAR, INC. 2.09% UNION PACIFIC CORP. 2.07% TEREX CORP. 2.07% R.R. DONNELLEY & SONS CO. 2.06% GOODRICH CORP. 2.05% TEXTRON, INC. 2.05% C.H. ROBINSON WORLDWIDE, INC. 2.04% ---------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Machinery 25.80% Aerospace & Defense 18.91% Commercial Services & Supplies 16.66% Road & Rail 9.93% Industrial Conglomerates 7.92% Electrical Equipment 5.79% Air Freight & Logistics 5.62% Building Products 3.67% Trading Companies & Distributors 1.99% Construction & Engineering 1.97% Airlines 1.74%
* The Fund's Top 10 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 Materials ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- MONSANTO CO. 3.89% UNITED STATES STEEL CORP. 3.88% MEADWESTVACO CORP. 3.87% BALL CORP. 3.81% EASTMAN CHEMICAL CO. 3.79% FREEPORT-MCMORAN COPPER & GOLD, INC. -- CLASS B 3.76% PACTIV CORP. 3.75% VULCAN MATERIALS CO. 3.66% INTERNATIONAL PAPER CO. 3.64% PRAXAIR, INC. 3.63% --------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Chemicals 45.69 Metals & Mining 21.69 Containers & Packaging 18.03 Paper & Forest Products 10.93 Construction Materials 3.66
* The Fund's Top 10 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 20 Rydex S&P Equal Weight Technology ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- FIRST DATA CORP. 1.68% JUNIPER NETWORKS, INC. 1.58% PMC -- SIERRA, INC. 1.51% AFFILIATED COMPUTER SERVICES, INC. -- CLASS A 1.50% EMC CORP. 1.50% NVIDIA CORP. 1.49% CIENA CORP. 1.48% FIDELITY NATIONAL INFORMATION SERVICES, INC. 1.48% XILINX, INC. 1.48% ADC TELECOMMUNICATIONS, INC. 1.44% --------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Semiconductors & Semiconductor Equipment 24.29 It Services 16.33 Software 16.26 Computers & Peripherals 14.72 Communications Equipment 13.90 Electronic Equipment & Instruments 7.73 Internet Software & Services 5.36 Office Electronics 1.41
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 21 Rydex S&P Equal Weight Utilities ETF PORTFOLIO SUMMARY April 30, 2007 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* -------------------------------------------------------------------------------- DESCRIPTION % OF NET ASSETS -------------------------------------------------------------------------------- PPL CORP. 2.61% EXELON CORP. 2.60% ENTERGY CORP. 2.57% QUESTAR CORP. 2.57% ALLEGHENY ENERGY, INC. 2.55% EMBARQ CORP. 2.54% PUBLIC SERVICE ENTERPRISE GROUP, INC. 2.52% DYNEGY, INC. 2.50% PG&E CORP. 2.48% AMERICAN ELECTRIC POWER CO., INC. 2.47% --------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Electric Utilities 32.11% Multi-Utilities 31.53% Diversified Telecommunication Services 16.87% Independent Power Producers & Energy Traders 9.74% Gas Utilities 5.05% Wireless Telecommunication Services 4.70%
* The Fund's Top 10 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 22 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS 99.8% AEROSPACE & DEFENSE 2.0% Boeing Co. ..................................... 47,356 $4,404,108 General Dynamics Corp. ......................... 55,314 4,342,149 Goodrich Corp. ................................. 85,945 4,885,114 Honeywell International, Inc. .................. 91,375 4,950,698 L-3 Communications Holdings, Inc. .............. 51,549 4,635,802 Lockheed Martin Corp. .......................... 43,960 4,226,314 Northrop Grumman Corp. ......................... 58,771 4,327,896 Raytheon Co. ................................... 81,495 4,363,242 Rockwell Collins, Inc. ......................... 63,218 4,151,526 United Technologies Corp. ...................... 66,800 4,484,284 -------------- TOTAL AEROSPACE & DEFENSE 44,771,133 -------------- AIR FREIGHT & LOGISTICS 0.6% C.H. Robinson Worldwide, Inc. .................. 90,369 4,831,127 FedEx Corp. .................................... 38,533 4,062,919 United Parcel Service, Inc. -- Class B.......... 62,072 4,371,731 -------------- TOTAL AIR FREIGHT & LOGISTICS 13,265,777 -------------- AIRLINES 0.2% Southwest Airlines Co. ......................... 287,582 4,126,802 -------------- TOTAL AIRLINES 4,126,802 -------------- AUTO COMPONENTS 0.4% Goodyear Tire & Rubber Co.*..................... 151,350 5,033,901 Johnson Controls, Inc. ......................... 45,357 4,641,382 -------------- TOTAL AUTO COMPONENTS 9,675,283 -------------- AUTOMOBILES 0.6% Ford Motor Co. ................................. 567,297 4,561,068 General Motors Corp. ........................... 146,657 4,580,098 Harley-Davidson, Inc. .......................... 70,461 4,461,590 -------------- TOTAL AUTOMOBILES 13,602,756 -------------- BEVERAGES 1.6% Anheuser-Busch Cos., Inc. ...................... 86,354 4,247,753 Brown-Forman Corp. -- Class B................... 66,283 4,237,472 Coca-Cola Co. (The)............................. 91,259 4,762,807 Coca-Cola Enterprises, Inc. .................... 211,523 4,640,815 Constellation Brands, Inc. -- Class A*.......... 222,131 4,977,956 Molson Coors Brewing Co. -- Class B............. 48,501 4,572,674 Pepsi Bottling Group, Inc. ..................... 139,704 4,583,688 PepsiCo, Inc. .................................. 68,404 4,520,821 -------------- TOTAL BEVERAGES 36,543,986 -------------- BIOTECHNOLOGY 1.4% Amgen, Inc.*.................................... 71,819 4,606,471 Biogen Idec, Inc.*.............................. 97,729 4,613,786 Celgene Corp.*.................................. 83,281 5,093,466 Genzyme Corp.*.................................. 71,981 4,701,079 Gilead Sciences, Inc.*.......................... 61,362 5,014,502 MedImmune, Inc.*................................ 132,231 7,494,853 -------------- TOTAL BIOTECHNOLOGY 31,524,157 --------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ BUILDING PRODUCTS 0.4% American Standard Cos., Inc. ................... 80,593 $4,437,451 Masco Corp. .................................... 154,630 4,207,482 -------------- TOTAL BUILDING PRODUCTS 8,644,933 -------------- CAPITAL MARKETS 3.4% Ameriprise Financial, Inc. ..................... 77,567 4,612,909 Bank of New York Co., Inc....................... 110,257 4,463,203 Bear Stearns Cos., Inc. ........................ 29,062 4,524,953 Charles Schwab Corp. ........................... 237,917 4,548,973 E*Trade Financial Corp.*........................ 197,641 4,363,913 Federated Investors, Inc. -- Class B............ 119,898 4,575,308 Franklin Resources, Inc. ....................... 36,703 4,819,471 Goldman Sachs Group, Inc. ...................... 21,347 4,666,668 Janus Capital Group, Inc. ...................... 211,882 5,301,288 Legg Mason, Inc. ............................... 44,420 4,406,020 Lehman Brothers Holdings, Inc. ................. 59,090 4,448,295 Mellon Financial Corp. ......................... 103,316 4,435,356 Merrill Lynch & Co., Inc. ...................... 53,483 4,825,771 Morgan Stanley.................................. 57,549 4,834,692 Northern Trust Corp. ........................... 74,063 4,662,266 State Street Corp. ............................. 67,673 4,660,640 T. Rowe Price Group, Inc. ...................... 92,524 4,596,592 -------------- TOTAL CAPITAL MARKETS 78,746,318 -------------- CHEMICALS 2.5% Air Products & Chemicals, Inc. ................. 58,694 4,490,091 Ashland, Inc. .................................. 67,317 4,035,654 Dow Chemical Co. (The).......................... 94,111 4,198,292 Du Pont (E.I.) de Nemours & Co. ................ 85,449 4,201,527 Eastman Chemical Co. ........................... 70,996 4,806,429 Ecolab, Inc. ................................... 100,579 4,323,891 Hercules, Inc.*................................. 209,894 3,954,403 International Flavors & Fragrances, Inc. ....... 92,341 4,494,236 Monsanto Co. ................................... 81,724 4,820,899 PPG Industries, Inc. ........................... 62,315 4,585,138 Praxair, Inc. .................................. 70,342 4,540,576 Rohm & Haas Co. ................................ 83,897 4,293,010 Sigma-Aldrich Corp. ............................ 107,179 4,510,092 -------------- TOTAL CHEMICALS 57,254,238 -------------- COMMERCIAL BANKS 3.6% BB&T Corp. ..................................... 105,668 4,397,902 Comerica, Inc. ................................. 73,170 4,529,955 Commerce Bancorp, Inc. ......................... 130,077 4,349,775 Compass Bancshares, Inc. ....................... 64,175 4,375,451 Fifth Third Bancorp............................. 109,210 4,432,834 First Horizon National Corp. ................... 104,734 4,106,620 Huntington Bancshares, Inc. .................... 193,365 4,288,836 KeyCorp......................................... 116,563 4,158,968 M&T Bank Corp. ................................. 37,181 4,139,733 Marshall & Ilsley Corp. ........................ 92,665 4,449,773 National City Corp. ............................ 119,336 4,361,731 PNC Financial Services Group, Inc. ............. 61,313 4,543,293 Regions Financial Corp. ........................ 123,962 4,349,827 SunTrust Banks, Inc. ........................... 51,429 4,341,636
See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Synovus Financial Corp. ........................ 133,511 $4,213,607 U.S. Bancorp.................................... 122,031 4,191,765 Wachovia Corp. ................................. 77,807 4,321,401 Wells Fargo & Co. .............................. 126,268 4,531,758 Zions Bancorp................................... 50,774 4,153,313 -------------- TOTAL COMMERCIAL BANKS 82,238,178 -------------- COMMERCIAL SERVICES & SUPPLIES 1.7% Allied Waste Industries, Inc.*.................. 348,912 4,664,953 Avery Dennison Corp.*........................... 66,859 4,158,630 Cintas Corp. ................................... 108,297 4,057,889 Equifax, Inc. .................................. 116,042 4,618,472 Monster Worldwide, Inc.*........................ 90,644 3,811,580 Pitney Bowes, Inc. ............................. 94,841 4,552,368 R.R. Donnelley & Sons Co. ...................... 119,939 4,821,548 Robert Half International, Inc. ................ 116,403 3,876,220 Waste Management, Inc. ......................... 128,074 4,791,248 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 39,352,908 -------------- COMMUNICATIONS EQUIPMENT 2.0% ADC Telecommunications, Inc.*................... 263,348 4,845,603 Avaya, Inc.*.................................... 367,461 4,747,596 Ciena Corp.*.................................... 169,725 4,949,181 Cisco Systems, Inc.*............................ 166,019 4,439,348 Corning, Inc.*.................................. 197,374 4,681,711 JDS Uniphase Corp.*............................. 282,323 4,652,683 Juniper Networks, Inc.*......................... 234,985 5,254,265 Motorola, Inc. ................................. 235,184 4,075,739 QUALCOMM, Inc. ................................. 98,414 4,310,533 Tellabs, Inc.*.................................. 432,004 4,587,883 -------------- TOTAL COMMUNICATIONS EQUIPMENT 46,544,542 -------------- COMPUTERS & PERIPHERALS 2.2% Apple, Inc.*.................................... 47,938 4,784,212 Dell, Inc.*..................................... 191,041 4,816,144 EMC Corp.*...................................... 331,653 5,034,493 Hewlett-Packard Co. ............................ 107,945 4,548,802 International Business Machines Corp. .......... 46,032 4,704,931 Lexmark International, Inc. -- Class A*......... 72,685 3,961,332 NCR Corp.*...................................... 90,178 4,544,971 Network Appliance, Inc.*........................ 117,152 4,359,226 QLogic Corp.*................................... 250,120 4,472,146 SanDisk Corp.*.................................. 105,707 4,592,969 Sun Microsystems, Inc.*......................... 689,490 3,599,138 -------------- TOTAL COMPUTERS & PERIPHERALS 49,418,364 -------------- CONSTRUCTION & ENGINEERING 0.2% Fluor Corp. .................................... 48,905 4,676,296 -------------- TOTAL CONSTRUCTION & ENGINEERING 4,676,296 -------------- CONSTRUCTION MATERIALS 0.2% Vulcan Materials Co. ........................... 36,645 4,531,887 -------------- TOTAL CONSTRUCTION MATERIALS 4,531,887 --------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ CONSUMER FINANCE 0.6% American Express Co. ........................... 76,778 $4,658,121 Capital One Financial Corp. .................... 56,726 4,212,473 SLM Corp. ...................................... 103,239 5,557,355 -------------- TOTAL CONSUMER FINANCE 14,427,949 -------------- CONTAINERS & PACKAGING 1.0% Ball Corp. ..................................... 94,653 4,797,960 Bemis Co., Inc. ................................ 130,536 4,336,406 Pactiv Corp.*................................... 136,500 4,720,170 Sealed Air Corp. ............................... 135,524 4,458,740 Temple-Inland, Inc. ............................ 74,017 4,384,767 -------------- TOTAL CONTAINERS & PACKAGING 22,698,043 -------------- DISTRIBUTORS 0.2% Genuine Parts Co. .............................. 88,382 4,366,955 -------------- TOTAL DISTRIBUTORS 4,366,955 -------------- DIVERSIFIED CONSUMER SERVICES 0.4% Apollo Group, Inc. -- Class A*.................. 93,721 4,433,003 H&R Block, Inc. ................................ 205,457 4,645,383 -------------- TOTAL DIVERSIFIED CONSUMER SERVICES 9,078,386 -------------- DIVERSIFIED FINANCIAL SERVICES 1.2% Bank of America Corp. .......................... 86,030 4,378,927 Chicago Mercantile Exchange Holdings, Inc. ..... 8,080 4,175,340 CIT Group, Inc. ................................ 82,588 4,926,374 Citigroup, Inc. ................................ 85,990 4,610,784 JPMorgan Chase & Co. ........................... 90,371 4,708,329 Moody's Corp. .................................. 67,713 4,477,184 -------------- TOTAL DIVERSIFIED FINANCIAL SERVICES 27,276,938 -------------- DIVERSIFIED TELECOMMUNICATION SERVICES 1.4% AT&T, Inc. ..................................... 116,047 4,493,340 CenturyTel, Inc. ............................... 98,414 4,531,965 Citizens Communications Co. .................... 300,011 4,671,171 Embarq Corp. ................................... 79,728 4,786,869 Qwest Communications International, Inc.*....... 497,820 4,420,642 Verizon Communications, Inc. ................... 118,279 4,515,892 Windstream Corp................................. 299,536 4,379,216 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 31,799,095 -------------- ELECTRIC UTILITIES 2.6% Allegheny Energy, Inc.*......................... 90,188 4,821,451 American Electric Power Co., Inc. .............. 92,897 4,665,287 Duke Energy Corp. .............................. 219,043 4,494,762 Edison International............................ 88,343 4,624,756 Entergy Corp. .................................. 43,035 4,868,980 Exelon Corp. ................................... 64,945 4,897,503 FirstEnergy Corp. .............................. 68,312 4,675,273 FPL Group, Inc. ................................ 72,480 4,665,538 Integrys Energy Group, Inc. .................... 79,698 4,471,058 Pinnacle West Capital Corp. .................... 90,795 4,384,491 PPL Corp. ...................................... 113,389 4,944,894
See Notes to Financial Statements. SEMI-ANNUAL REPORT 24 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Progress Energy, Inc. .......................... 86,599 $4,377,579 Southern Co. ................................... 120,789 4,564,616 -------------- TOTAL ELECTRIC UTILITIES 60,456,188 -------------- ELECTRICAL EQUIPMENT 0.6% Cooper Industries Ltd., -- Class A.............. 93,003 4,627,829 Emerson Electric Co. ........................... 101,303 4,760,228 Rockwell Automation, Inc.*...................... 71,488 4,256,396 -------------- TOTAL ELECTRICAL EQUIPMENT 13,644,453 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.1% Agilent Technologies, Inc.*..................... 135,535 4,658,338 Jabil Circuit, Inc. ............................ 163,844 3,817,565 Molex, Inc. .................................... 151,247 4,519,260 Sanmina-SCI Corp.*.............................. 1,151,972 3,974,304 Solectron Corp.*................................ 1,337,885 4,481,915 Tektronix, Inc. ................................ 149,475 4,393,070 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 25,844,452 -------------- ENERGY EQUIPMENT & SERVICES 2.6% Baker Hughes, Inc. ............................. 67,938 5,461,536 BJ Services Co. ................................ 158,417 4,540,231 ENSCO International, Inc. ...................... 84,396 4,758,246 Halliburton Co. ................................ 133,708 4,247,903 Nabors Industries Ltd.*......................... 146,173 4,695,077 National-Oilwell Varco, Inc.*................... 58,683 4,979,253 Noble Corp. .................................... 57,894 4,875,254 Rowan Cos., Inc. ............................... 140,510 5,148,286 Schlumberger Ltd. .............................. 66,800 4,931,844 Smith International, Inc. ...................... 97,618 5,119,088 Transocean, Inc.*............................... 56,140 4,839,268 Weatherford International Ltd.*................. 96,997 5,091,373 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 58,687,359 -------------- FOOD & STAPLES RETAILING 1.8% Costco Wholesale Corp. ......................... 81,007 4,339,545 CVS Corp. ...................................... 129,121 4,679,345 Kroger Co. ..................................... 161,090 4,753,766 Safeway, Inc. .................................. 123,173 4,471,180 SUPERVALU, Inc. ................................ 113,734 5,220,390 Sysco Corp. .................................... 131,962 4,320,436 Wal-Mart Stores, Inc. .......................... 93,270 4,469,498 Walgreen Co. ................................... 93,602 4,109,128 Whole Foods Market, Inc. ....................... 96,667 4,523,049 -------------- TOTAL FOOD & STAPLES RETAILING 40,886,337 -------------- FOOD PRODUCTS 2.5% Archer-Daniels-Midland Co. ..................... 127,863 4,948,298 Campbell Soup Co. .............................. 109,043 4,263,581 ConAgra Foods, Inc. ............................ 177,300 4,358,034 Dean Foods Co. ................................. 92,321 3,363,254 General Mills, Inc. ............................ 76,644 4,590,976 H.J. Heinz Co. ................................. 93,347 4,397,577 Hershey Co. (The)............................... 80,163 4,405,758
MARKET SHARES VALUE ------------------------------------------------------------------------------ Kellogg Co. .................................... 84,403 $4,465,763 Kraft Foods, Inc. .............................. 136,006 4,552,121 McCormick & Co, Inc. ........................... 113,754 4,222,548 Sara Lee Corp. ................................. 258,387 4,240,131 Tyson Foods, Inc. -- Class A.................... 235,468 4,935,409 Wm. Wrigley Jr. Co. ............................ 83,044 4,889,631 -------------- TOTAL FOOD PRODUCTS 57,633,081 -------------- GAS UTILITIES 0.4% Nicor, Inc. .................................... 91,018 4,663,762 Questar Corp. .................................. 49,859 4,842,805 -------------- TOTAL GAS UTILITIES 9,506,567 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 2.4% Bausch & Lomb, Inc. ............................ 85,302 5,018,317 Baxter International, Inc. ..................... 83,593 4,733,872 Becton Dickinson & Co. ......................... 57,741 4,543,639 Biomet, Inc. ................................... 101,625 4,390,200 Boston Scientific Corp.*........................ 287,664 4,441,532 C.R. Bard, Inc. ................................ 54,158 4,502,155 Hospira, Inc.*.................................. 109,000 4,419,950 Medtronic, Inc. ................................ 87,339 4,622,853 St Jude Medical, Inc.*.......................... 113,843 4,871,342 Stryker Corp. .................................. 66,276 4,303,963 Varian Medical Systems, Inc.*................... 89,507 3,778,090 Zimmer Holdings, Inc.*.......................... 50,312 4,552,230 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 54,178,143 -------------- HEALTH CARE PROVIDERS & SERVICES 3.2% Aetna, Inc. .................................... 100,166 4,695,782 AmerisourceBergen Corp. ........................ 82,493 4,123,825 Cardinal Health, Inc. .......................... 60,949 4,263,382 Cigna Corp. .................................... 30,227 4,703,019 Coventry Health Care, Inc.*..................... 77,855 4,502,355 Express Scripts, Inc.*.......................... 52,283 4,995,641 Humana, Inc.*................................... 73,508 4,648,646 Laboratory Corp. of America Holdings*........... 60,323 4,761,898 Manor Care, Inc. ............................... 79,831 5,180,233 McKesson Corp. ................................. 77,948 4,585,681 Medco Health Solutions, Inc.*................... 62,653 4,888,187 Patterson Cos., Inc.*........................... 129,727 4,677,956 Quest Diagnostics, Inc. ........................ 87,549 4,280,271 Tenet Healthcare Corp.*......................... 678,877 5,037,267 UnitedHealth Group, Inc. ....................... 79,739 4,230,951 WellPoint, Inc.*................................ 54,603 4,311,999 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 73,887,093 -------------- HEALTH CARE TECHNOLOGY 0.2% IMS Health, Inc. ............................... 151,257 4,436,368 -------------- TOTAL HEALTH CARE TECHNOLOGY 4,436,368 -------------- HOTELS, RESTAURANTS & LEISURE 2.4% Carnival Corp. ................................. 94,108 4,600,940 Darden Restaurants, Inc. ....................... 108,454 4,498,672 Harrah's Entertainment, Inc. ................... 51,420 4,386,126 Hilton Hotels Corp. ............................ 128,903 4,382,702
See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) International Game Technology, Inc. ............ 110,083 $4,198,566 Marriott International, Inc. -- Class A......... 90,093 4,073,105 McDonald's Corp. ............................... 98,700 4,765,236 Starbucks Corp.*................................ 143,121 4,439,613 Starwood Hotels & Resorts Worldwide, Inc. ...... 67,519 4,525,123 Wendy's International, Inc. .................... 138,979 5,239,508 Wyndham Worldwide Corp.*........................ 129,939 4,495,889 Yum! Brands, Inc. .............................. 73,925 4,573,001 -------------- TOTAL HOTELS, RESTAURANTS & LEISURE 54,178,481 -------------- HOUSEHOLD DURABLES 2.6% Black & Decker Corp. ........................... 51,839 4,702,834 Centex Corp. ................................... 97,501 4,365,120 D.R. Horton, Inc. .............................. 187,611 4,161,212 Fortune Brands, Inc. ........................... 54,714 4,382,591 Harman International Industries, Inc. .......... 43,717 5,328,665 KB Home......................................... 93,059 4,104,832 Leggett & Platt, Inc. .......................... 185,412 4,360,890 Lennar Corp. -- Class A......................... 94,515 4,036,736 Newell Rubbermaid, Inc.*........................ 141,270 4,332,751 Pulte Homes, Inc. .............................. 161,867 4,354,222 Snap-On, Inc. .................................. 88,966 4,848,647 Stanley Works................................... 79,353 4,624,693 Whirlpool Corp. ................................ 50,759 5,381,977 -------------- TOTAL HOUSEHOLD DURABLES 58,985,170 -------------- HOUSEHOLD PRODUCTS 0.8% Clorox Co. ..................................... 68,677 4,606,853 Colgate-Palmolive Co. .......................... 65,907 4,464,540 Kimberly-Clark Corp. ........................... 64,140 4,564,844 Procter & Gamble Co. ........................... 69,489 4,468,838 -------------- TOTAL HOUSEHOLD PRODUCTS 18,105,075 -------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.8% AES Corp.*...................................... 207,819 4,569,940 Constellation Energy Group, Inc. ............... 51,196 4,562,588 Dynegy, Inc.*................................... 496,935 4,676,158 TXU Corp. ...................................... 68,181 4,471,310 -------------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 18,279,996 -------------- INDUSTRIAL CONGLOMERATES 0.8% 3M Co. ......................................... 56,705 4,693,473 General Electric Co. ........................... 124,590 4,592,387 Textron, Inc. .................................. 47,950 4,875,077 Tyco International Ltd. ........................ 139,300 4,545,359 -------------- TOTAL INDUSTRIAL CONGLOMERATES 18,706,296 -------------- INSURANCE 4.8% ACE Ltd. ....................................... 78,204 4,650,010 AFLAC, Inc. .................................... 93,671 4,809,069 Allstate Corp................................... 72,168 4,497,510 Ambac Financial Group, Inc. .................... 49,897 4,580,545
MARKET SHARES VALUE ------------------------------------------------------------------------------ American International Group, Inc. ............. 64,121 $4,482,699 Aon Corp. ...................................... 114,040 4,419,050 Assurant, Inc. ................................. 77,609 4,464,846 Chubb Corp. .................................... 86,771 4,670,883 Cincinnati Financial Corp. ..................... 100,735 4,557,251 Genworth Financial, Inc. -- Class A............. 124,866 4,556,360 Hartford Financial Services Group, Inc. ........ 45,396 4,594,075 Lincoln National Corp. ......................... 64,887 4,616,710 Loews Corp. .................................... 98,215 4,647,534 Marsh & McLennan Cos., Inc. .................... 149,010 4,732,558 MBIA, Inc. ..................................... 65,857 4,581,013 MetLife, Inc. .................................. 69,430 4,561,551 Principal Financial Group, Inc. ................ 72,220 4,585,248 Progressive Corp. .............................. 203,773 4,701,043 Prudential Financial, Inc. ..................... 48,341 4,592,395 SAFECO Corp. ................................... 64,563 4,308,935 Torchmark Corp. ................................ 67,644 4,620,085 Travelers Cos., Inc. (The)...................... 85,631 4,632,637 UnumProvident Corp. ............................ 193,492 4,814,081 XL Capital Ltd. -- Class A...................... 63,228 4,930,519 -------------- TOTAL INSURANCE 110,606,607 -------------- INTERNET & CATALOG RETAIL 0.5% Amazon.Com, Inc.*............................... 113,423 6,956,233 IAC/InterActiveCorp*............................ 117,386 4,474,754 -------------- TOTAL INTERNET & CATALOG RETAIL 11,430,987 -------------- INTERNET SOFTWARE & SERVICES 0.8% eBay, Inc.*..................................... 135,455 4,597,343 Google, Inc. -- Class A*........................ 9,667 4,556,830 VeriSign, Inc.*................................. 173,869 4,755,317 Yahoo!, Inc.*................................... 143,322 4,018,749 -------------- TOTAL INTERNET SOFTWARE & SERVICES 17,928,239 -------------- IT SERVICES 2.4% Affiliated Computer Services, Inc. -- Class A*............................................ 83,579 5,007,218 Automatic Data Processing, Inc. ................ 99,174 4,439,028 Cognizant Technology Solutions Corp. -- Class A*............................................ 48,143 4,303,984 Computer Sciences Corp.*........................ 84,120 4,672,025 Convergys Corp.*................................ 171,663 4,336,207 Electronic Data Systems Corp. .................. 156,338 4,571,323 Fidelity National Information Services, Inc. ... 97,770 4,940,318 First Data Corp. ............................... 174,675 5,659,470 Fiserv, Inc.*................................... 83,868 4,459,262 Paychex, Inc. .................................. 107,598 3,991,886 Unisys Corp.*................................... 518,196 4,062,657 Western Union Co. (The)......................... 197,509 4,157,564 -------------- TOTAL IT SERVICES 54,600,942 -------------- LEISURE EQUIPMENT & PRODUCTS 0.8% Brunswick Corp. ................................ 135,793 4,448,579 Eastman Kodak Co. .............................. 187,321 4,666,166
See Notes to Financial Statements. SEMI-ANNUAL REPORT 26 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Hasbro, Inc. ................................... 147,056 $4,648,440 Mattel, Inc. ................................... 154,524 4,373,029 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 18,136,214 -------------- LIFE SCIENCES TOOLS & SERVICES 1.0% Applera Corp. -- Applied Biosystems Group....... 148,244 4,631,143 Millipore Corp.*................................ 60,440 4,462,285 PerkinElmer, Inc. .............................. 184,517 4,465,311 Thermo Electron Corp.*.......................... 95,229 4,957,622 Waters Corp.*................................... 76,683 4,557,271 -------------- TOTAL LIFE SCIENCES TOOLS & SERVICES 23,073,632 -------------- MACHINERY 2.7% Caterpillar, Inc. .............................. 67,742 4,919,424 Cummins, Inc. .................................. 62,417 5,752,351 Danaher Corp. .................................. 60,565 4,311,622 Deere & Co. .................................... 38,838 4,248,877 Dover Corp. .................................... 90,188 4,339,847 Eaton Corp. .................................... 52,363 4,671,303 Illinois Tool Works, Inc. ...................... 85,605 4,392,393 Ingersoll-Rand Co., Ltd. -- Class A............. 100,220 4,474,823 ITT Corp. ...................................... 72,403 4,620,035 PACCAR, Inc. ................................... 59,777 5,020,072 Pall Corp. ..................................... 113,426 4,758,221 Parker-Hannifin Corp. .......................... 52,313 4,820,120 Terex Corp.*.................................... 63,243 4,923,468 -------------- TOTAL MACHINERY 61,252,556 -------------- MEDIA 3.3% CBS Corp. -- Class B............................ 142,559 4,529,099 Clear Channel Communications, Inc. ............. 121,970 4,321,397 Comcast Corp. -- Class A*....................... 167,578 4,467,630 DIRECTV Group, Inc.*............................ 191,884 4,574,515 Dow Jones & Co., Inc. .......................... 125,924 4,574,819 E.W. Scripps Co. -- Class A..................... 98,521 4,265,959 Gannett Co., Inc. .............................. 74,118 4,229,173 Interpublic Group of Cos., Inc.*................ 342,361 4,341,137 McGraw-Hill Cos., Inc. ......................... 68,078 4,461,151 Meredith Corp. ................................. 74,828 4,334,038 New York Times Co. -- Class A................... 176,103 4,120,810 News Corp. -- Class A........................... 191,918 4,297,044 Omnicom Group, Inc. ............................ 41,428 4,337,926 Time Warner, Inc. .............................. 220,795 4,555,001 Tribune Co. .................................... 145,547 4,773,942 Viacom, Inc. -- Class B*........................ 106,687 4,400,839 Walt Disney Co. ................................ 127,289 4,452,569 -------------- TOTAL MEDIA 75,037,049 -------------- METALS & MINING 1.2% Alcoa, Inc. .................................... 127,216 4,514,896 Allegheny Technologies, Inc. ................... 41,644 4,563,349 Freeport-McMoRan Copper & Gold, Inc. -- Class B............................................. 71,032 4,770,509 Newmont Mining Corp. (Holding Co.).............. 101,286 4,223,626
MARKET SHARES VALUE ------------------------------------------------------------------------------ Nucor Corp. .................................... 68,115 $4,322,578 United States Steel Corp. ...................... 47,685 4,841,935 -------------- TOTAL METALS & MINING 27,236,893 -------------- MULTI-UTILITIES 2.6% Ameren Corp. ................................... 86,776 4,561,814 CenterPoint Energy, Inc. ....................... 245,273 4,618,491 CMS Energy Corp. ............................... 251,102 4,650,409 Consolidated Edison, Inc. ...................... 88,304 4,526,463 Dominion Resources, Inc. ....................... 50,433 4,599,490 DTE Energy Co. ................................. 92,706 4,689,996 KeySpan Corp. .................................. 105,006 4,348,298 NiSource, Inc. ................................. 180,348 4,434,757 PG&E Corp. ..................................... 92,665 4,688,849 Public Service Enterprise Group, Inc. .......... 55,022 4,756,652 Sempra Energy................................... 71,158 4,517,110 TECO Energy, Inc. .............................. 256,147 4,597,839 Xcel Energy, Inc. .............................. 181,733 4,377,948 -------------- TOTAL MULTI-UTILITIES 59,368,116 -------------- MULTILINE RETAIL 1.9% Big Lots, Inc.*................................. 138,302 4,453,324 Dillard's, Inc. -- Class A...................... 133,441 4,621,062 Dollar General Corp. ........................... 203,616 4,347,202 Family Dollar Stores, Inc. ..................... 147,663 4,701,590 Federated Department Stores, Inc. .............. 96,881 4,255,014 J.C. Penney Holding Co., Inc. .................. 54,032 4,273,391 Kohl's Corp.*................................... 59,217 4,384,427 Nordstrom, Inc. ................................ 84,006 4,613,609 Sears Holdings Corp.*........................... 24,555 4,687,795 Target Corp. ................................... 71,823 4,264,131 -------------- TOTAL MULTILINE RETAIL 44,601,545 -------------- OFFICE ELECTRONICS 0.2% Xerox Corp.*.................................... 255,423 4,725,325 -------------- TOTAL OFFICE ELECTRONICS 4,725,325 -------------- OIL, GAS & CONSUMABLE FUELS 4.4% Anadarko Petroleum Corp. ....................... 107,861 5,032,794 Apache Corp. ................................... 63,618 4,612,305 Chesapeake Energy Corp. ........................ 145,070 4,896,112 Chevron Corp. .................................. 62,592 4,869,032 ConocoPhillips.................................. 64,840 4,496,654 CONSOL Energy, Inc. ............................ 118,676 4,968,964 Devon Energy Corp. ............................. 66,884 4,873,837 El Paso Corp. .................................. 307,842 4,617,630 EOG Resources, Inc. ............................ 64,583 4,742,976 Exxon Mobil Corp. .............................. 60,965 4,839,402 Hess Corp....................................... 83,189 4,720,976 Kinder Morgan, Inc. ............................ 40,409 4,305,983 Marathon Oil Corp. ............................. 45,890 4,660,130 Murphy Oil Corp. ............................... 82,617 4,580,286 Occidental Petroleum Corp. ..................... 93,840 4,757,688 Peabody Energy Corp. ........................... 112,384 5,392,184 Spectra Energy Corp. ........................... 178,276 4,653,004 Sunoco, Inc. ................................... 64,725 4,888,679
See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Valero Energy Corp. ............................ 71,198 $5,000,236 Williams Cos., Inc. ............................ 160,301 4,728,879 XTO Energy, Inc. ............................... 84,383 4,579,465 -------------- TOTAL OIL, GAS & CONSUMABLE FUELS 100,217,216 -------------- PAPER & FOREST PRODUCTS 0.6% International Paper Co. ........................ 121,714 4,591,052 MeadWestvaco Corp. ............................. 145,591 4,856,916 Weyerhaeuser Co. ............................... 54,109 4,286,515 -------------- TOTAL PAPER & FOREST PRODUCTS 13,734,483 -------------- PERSONAL PRODUCTS 0.4% Avon Products, Inc. ............................ 114,344 4,550,891 Estee Lauder Cos., Inc -- Class A............... 89,582 4,606,307 -------------- TOTAL PERSONAL PRODUCTS 9,157,198 -------------- PHARMACEUTICALS 2.9% Abbott Laboratories............................. 80,380 4,551,116 Allergan, Inc. ................................. 38,847 4,708,256 Barr Pharmaceuticals, Inc.*..................... 89,793 4,342,389 Bristol-Myers Squibb Co. ....................... 158,917 4,586,345 Eli Lilly & Co. ................................ 82,411 4,872,962 Forest Laboratories, Inc.*...................... 84,909 4,518,008 Johnson & Johnson............................... 70,787 4,545,941 King Pharmaceuticals, Inc.*..................... 228,491 4,672,641 Merck & Co., Inc. .............................. 99,449 5,115,657 Mylan Laboratories, Inc. ....................... 218,527 4,792,297 Pfizer, Inc. ................................... 171,826 4,546,516 Schering-Plough Corp. .......................... 184,695 5,860,372 Watson Pharmaceuticals, Inc.*................... 168,022 4,587,001 Wyeth........................................... 88,717 4,923,794 -------------- TOTAL PHARMACEUTICALS 66,623,295 -------------- REAL ESTATE INVESTMENT TRUSTS (REITS) 2.4% Apartment Investment & Management Co. -- Class A............................................. 77,450 4,282,985 Archstone-Smith Trust........................... 79,476 4,141,494 AvalonBay Communities, Inc. .................... 33,106 4,047,540 Boston Properties, Inc. ........................ 36,481 4,288,706 Developers Diversified Realty Corp. ............ 68,517 4,460,457 Equity Residential Properties Trust............. 89,749 4,167,046 Host Hotels & Resorts, Inc. .................... 161,825 4,149,193 Kimco Realty Corp. ............................. 88,362 4,247,561 Plum Creek Timber Co., Inc. .................... 112,566 4,468,870 ProLogis........................................ 65,257 4,228,654 Public Storage, Inc. ........................... 44,258 4,130,157 Simon Property Group, Inc. ..................... 38,788 4,471,481 Vornado Realty Trust............................ 35,196 4,175,301 -------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 55,259,445 -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% CB Richard Ellis Group, Inc. -- Class A*........ 129,721 4,391,056 -------------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 4,391,056 --------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ ROAD & RAIL 1.0% Burlington Northern Santa Fe Corp. ............. 54,574 $4,777,408 CSX Corp. ...................................... 110,857 4,785,697 Norfolk Southern Corp. ......................... 88,852 4,730,480 Ryder System, Inc. ............................. 86,771 4,567,625 Union Pacific Corp. ............................ 43,475 4,967,019 -------------- TOTAL ROAD & RAIL 23,828,229 -------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.6% Advanced Micro Devices, Inc.*................... 307,585 4,250,825 Altera Corp.*................................... 205,591 4,634,021 Analog Devices, Inc. ........................... 121,272 4,683,525 Applied Materials, Inc. ........................ 231,886 4,456,849 Broadcom Corp. -- Class A*...................... 125,617 4,088,833 Intel Corp. .................................... 224,316 4,822,794 KLA-Tencor Corp. ............................... 82,449 4,580,042 Linear Technology Corp. ........................ 127,378 4,766,485 LSI Logic Corp.*................................ 422,919 3,594,812 Maxim Integrated Products, Inc. ................ 133,992 4,250,226 Micron Technology, Inc.*........................ 372,790 4,275,901 National Semiconductor Corp. ................... 171,418 4,508,293 Novellus Systems, Inc.*......................... 129,909 4,205,154 NVIDIA Corp.*................................... 150,593 4,953,004 PMC -- Sierra, Inc.*............................ 648,563 5,013,392 Teradyne, Inc.*................................. 256,147 4,469,765 Texas Instruments, Inc. ........................ 136,505 4,691,677 Xilinx, Inc. ................................... 167,159 4,927,847 -------------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 81,173,445 -------------- SOFTWARE 2.4% Adobe Systems, Inc.*............................ 110,480 4,591,549 Autodesk, Inc.*................................. 114,529 4,726,612 BMC Software, Inc.*............................. 139,206 4,506,098 CA, Inc. ....................................... 169,660 4,624,932 Citrix Systems, Inc.*........................... 137,558 4,484,391 Compuware Corp.*................................ 460,727 4,547,375 Electronic Arts, Inc.*.......................... 86,267 4,348,719 Intuit, Inc.*................................... 148,802 4,233,417 Microsoft Corp. ................................ 157,382 4,712,017 Novell, Inc.*................................... 614,364 4,484,857 Oracle Corp.*................................... 257,267 4,836,620 Symantec Corp.*................................. 256,656 4,517,146 -------------- TOTAL SOFTWARE 54,613,733 -------------- SPECIALTY RETAIL 3.3% Abercrombie & Fitch Co. -- Class A.............. 57,802 4,720,111 AutoNation, Inc.*............................... 203,706 4,163,751 AutoZone, Inc.*................................. 34,345 4,569,259 Bed Bath & Beyond, Inc.*........................ 110,282 4,492,889 Best Buy Co., Inc. ............................. 89,295 4,165,612 Circuit City Stores, Inc. ...................... 241,574 4,215,466 Gap, Inc. ...................................... 245,014 4,398,001 Home Depot, Inc. ............................... 114,687 4,343,197 Limited Brands, Inc. ........................... 167,401 4,615,245 Lowe's Cos., Inc. .............................. 138,091 4,220,061
See Notes to Financial Statements. SEMI-ANNUAL REPORT 28 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Office Depot, Inc.*............................. 124,452 $4,184,076 OfficeMax, Inc. ................................ 86,485 4,256,792 RadioShack Corp. ............................... 165,425 4,808,905 Sherwin-Williams Co. ........................... 65,270 4,162,268 Staples, Inc. .................................. 167,923 4,164,490 Tiffany & Co. .................................. 100,181 4,777,632 TJX Cos., Inc. ................................. 164,409 4,585,367 -------------- TOTAL SPECIALTY RETAIL 74,843,122 -------------- TEXTILES, APPAREL & LUXURY GOODS 1.2% Coach, Inc.*.................................... 87,529 4,274,041 Jones Apparel Group, Inc. ...................... 134,444 4,489,085 Liz Claiborne, Inc. ............................ 100,313 4,485,997 Nike, Inc. -- Class B........................... 80,598 4,341,008 Polo Ralph Lauren Corp. ........................ 51,034 4,700,742 V.F. Corp. ..................................... 53,006 4,654,457 -------------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 26,945,330 -------------- THRIFTS & MORTGAGE FINANCE 1.4% Countrywide Financial Corp. .................... 121,546 4,506,926 Federal Home Loan Mortgage Corp. ............... 70,929 4,594,781 Federal National Mortgage Association........... 79,481 4,683,020 Hudson City Bancorp, Inc. ...................... 318,604 4,243,805 MGIC Investment Corp. .......................... 73,806 4,547,188 Sovereign Bancorp, Inc. ........................ 172,067 4,176,066 Washington Mutual, Inc. ........................ 106,997 4,491,734 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 31,243,520 -------------- TOBACCO 0.6% Altria Group, Inc. ............................. 67,618 4,660,233 Reynolds American, Inc. ........................ 71,424 4,589,706 UST, Inc. ...................................... 76,168 4,317,202 -------------- TOTAL TOBACCO 13,567,141 --------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ TRADING COMPANIES & DISTRIBUTORS 0.2% W.W. Grainger, Inc. ............................ 57,094 $4,717,106 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 4,717,106 -------------- WIRELESS TELECOMMUNICATION SERVICES 0.4% ALLTEL Corp. ................................... 69,797 4,375,574 Sprint Nextel Corp. ............................ 224,820 4,503,144 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 8,878,718 -------------- TOTAL COMMON STOCKS (Cost $2,000,545,266) 2,279,171,125 -------------- SHORT TERM INVESTMENTS 0.2% SSgA Prime Money Market Fund.................... 4,555,691 4,555,691 -------------- TOTAL SHORT TERM INVESTMENTS (Cost $4,555,691) 4,555,691 -------------- TOTAL INVESTMENTS 100.0% (Cost $2,005,100,957) 2,283,726,816 -------------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 828,074 -------------- NET ASSETS--100.0% $2,284,554,890 ------------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 RYDEX RUSSELL TOP 50 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------------- COMMON STOCKS 98.8% AEROSPACE & DEFENSE 2.2% Boeing Co. ..................................... 67,494 $6,276,942 United Technologies Corp. ...................... 85,434 5,735,184 ------------ TOTAL AEROSPACE & DEFENSE 12,012,126 ------------ AIR FREIGHT & LOGISTICS 0.7% United Parcel Service, Inc. -- Class B.......... 54,401 3,831,462 ------------ TOTAL AIR FREIGHT & LOGISTICS 3,831,462 ------------ BEVERAGES 3.4% Coca-Cola Co. (The)............................. 172,128 8,983,360 PepsiCo, Inc. .................................. 139,546 9,222,595 ------------ TOTAL BEVERAGES 18,205,955 ------------ BIOTECHNOLOGY 1.8% Amgen, Inc.*.................................... 99,591 6,387,767 Genentech, Inc.*................................ 39,469 3,157,125 ------------ TOTAL BIOTECHNOLOGY 9,544,892 ------------ CAPITAL MARKETS 4.1% Goldman Sachs Group, Inc. ...................... 34,495 7,540,952 Merrill Lynch & Co., Inc. ...................... 77,872 7,026,390 Morgan Stanley.................................. 90,476 7,600,889 ------------ TOTAL CAPITAL MARKETS 22,168,231 ------------ COMMERCIAL BANKS 3.5% Wachovia Corp. ................................. 159,326 8,848,966 Wells Fargo & Co. .............................. 283,844 10,187,161 ------------ TOTAL COMMERCIAL BANKS 19,036,127 ------------ COMMUNICATIONS EQUIPMENT 3.7% Cisco Systems, Inc.*............................ 515,611 13,787,438 QUALCOMM, Inc. ................................. 141,582 6,201,292 ------------ TOTAL COMMUNICATIONS EQUIPMENT 19,988,730 ------------ COMPUTERS & PERIPHERALS 5.2% Dell, Inc.*..................................... 194,921 4,913,958 Hewlett-Packard Co. ............................ 236,716 9,975,212 International Business Machines Corp. .......... 130,912 13,380,516 ------------ TOTAL COMPUTERS & PERIPHERALS 28,269,686 ------------ CONSUMER FINANCE 1.0% American Express Co. ........................... 91,449 5,548,211 ------------ TOTAL CONSUMER FINANCE 5,548,211 ------------ DIVERSIFIED FINANCIAL SERVICES 10.8% Bank of America Corp. .......................... 392,669 19,986,852 Citigroup, Inc. ................................ 427,743 22,935,580 JPMorgan Chase & Co. ........................... 293,539 15,293,382 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 58,215,814 ------------
MARKET SHARES VALUE ---------------------------------------------------------------------------- DIVERSIFIED TELECOMMUNICATION SERVICES 5.6% AT&T, Inc. ..................................... 540,803 $20,939,892 Verizon Communications, Inc. ................... 246,411 9,407,972 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 30,347,864 ------------ FOOD & STAPLES RETAILING 1.8% Wal-Mart Stores, Inc. .......................... 207,796 9,957,584 ------------ TOTAL FOOD & STAPLES RETAILING 9,957,584 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 1.0% Medtronic, Inc. ................................ 101,918 5,394,520 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 5,394,520 ------------ HEALTH CARE PROVIDERS & SERVICES 1.1% UnitedHealth Group, Inc. ....................... 113,749 6,035,522 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 6,035,522 ------------ HOUSEHOLD PRODUCTS 3.4% Procter & Gamble Co. ........................... 282,354 18,158,186 ------------ TOTAL HOUSEHOLD PRODUCTS 18,158,186 ------------ INDUSTRIAL CONGLOMERATES 7.1% 3M Co. ......................................... 63,713 5,273,525 General Electric Co. ........................... 894,776 32,981,443 ------------ TOTAL INDUSTRIAL CONGLOMERATES 38,254,968 ------------ INSURANCE 2.4% American International Group, Inc. ............. 186,091 13,009,622 ------------ TOTAL INSURANCE 13,009,622 ------------ INTERNET SOFTWARE & SERVICES 1.5% Google, Inc. -- Class A*........................ 17,653 8,321,271 ------------ TOTAL INTERNET SOFTWARE & SERVICES 8,321,271 ------------ MEDIA 4.5% Comcast Corp. -- Class A*....................... 246,802 6,579,741 Idearc, Inc. ................................... 12,316 427,981 News Corp. -- Class A........................... 194,533 4,355,594 Time Warner, Inc. .............................. 323,306 6,669,803 Walt Disney Co. ................................ 174,762 6,113,175 ------------ TOTAL MEDIA 24,146,294 ------------ OIL, GAS & CONSUMABLE FUELS 11.8% Chevron Corp. .................................. 187,256 14,566,644 ConocoPhillips.................................. 139,448 9,670,719 Exxon Mobil Corp. .............................. 492,994 39,133,864 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 63,371,227 ------------ PHARMACEUTICALS 10.3% Abbott Laboratories............................. 128,879 7,297,129 Johnson & Johnson............................... 250,093 16,060,972 Merck & Co., Inc. .............................. 184,347 9,482,810
See Notes to Financial Statements. SEMI-ANNUAL REPORT 30 RYDEX RUSSELL TOP 50 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Pfizer, Inc. ................................... 618,988 $16,378,423 Wyeth........................................... 113,652 6,307,686 ------------ TOTAL PHARMACEUTICALS 55,527,020 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.0% Intel Corp. .................................... 491,368 10,564,412 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 10,564,412 ------------ SOFTWARE 5.4% Microsoft Corp. ................................ 763,689 22,864,849 Oracle Corp.*................................... 335,728 6,311,686 ------------ TOTAL SOFTWARE 29,176,535 ------------ SPECIALTY RETAIL 1.3% Home Depot, Inc. ............................... 178,918 6,775,625 ------------ TOTAL SPECIALTY RETAIL 6,775,625 ------------ TOBACCO 2.3% Altria Group, Inc. ............................. 176,396 12,157,212 ------------ TOTAL TOBACCO 12,157,212 ------------
MARKET SHARES VALUE ---------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES 0.9% Sprint Nextel Corp. ............................ 244,858 $4,904,506 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 4,904,506 ------------ TOTAL COMMON STOCKS (Cost $504,173,883) 532,923,602 ------------ SHORT TERM INVESTMENTS 1.1% SSgA Prime Money Market Fund.................... 5,871,820 5,871,820 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $5,871,820) 5,871,820 ------------ TOTAL INVESTMENTS 99.9% (Cost $510,045,703) 538,795,422 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 400,947 ------------ NET ASSETS--100.0% $539,196,369 ----------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------------------------- COMMON STOCKS 99.7% AEROSPACE & DEFENSE 1.4% Goodrich Corp. ................................. 2,597 $147,613 Northrop Grumman Corp. ......................... 4,090 301,188 Raytheon Co. ................................... 2,729 146,111 ------------ TOTAL AEROSPACE & DEFENSE 594,912 ------------ AUTO COMPONENTS 1.4% Goodyear Tire & Rubber Co.*..................... 8,692 289,096 Johnson Controls, Inc. ......................... 2,926 299,417 ------------ TOTAL AUTO COMPONENTS 588,513 ------------ AUTOMOBILES 3.5% Ford Motor Co. ................................. 125,300 1,007,412 General Motors Corp. ........................... 16,923 528,505 ------------ TOTAL AUTOMOBILES 1,535,917 ------------ BEVERAGES 1.7% Coca-Cola Enterprises, Inc. .................... 14,165 310,780 Molson Coors Brewing Co. -- Class B............. 4,476 421,997 ------------ TOTAL BEVERAGES 732,777 ------------ BUILDING PRODUCTS 0.5% Masco Corp. .................................... 7,700 209,517 ------------ TOTAL BUILDING PRODUCTS 209,517 ------------ CAPITAL MARKETS 0.3% Bear Stearns Cos., Inc. ........................ 727 113,194 ------------ TOTAL CAPITAL MARKETS 113,194 ------------ CHEMICALS 3.5% Air Products & Chemicals, Inc. ................. 2,106 161,109 Ashland, Inc. .................................. 5,392 323,250 Dow Chemical Co. (The).......................... 8,103 361,475 Eastman Chemical Co. ........................... 5,052 342,021 PPG Industries, Inc. ........................... 3,021 222,285 Rohm & Haas Co. ................................ 2,163 110,681 ------------ TOTAL CHEMICALS 1,520,821 ------------ COMMERCIAL BANKS 7.3% BB&T Corp. ..................................... 4,881 203,147 Comerica, Inc. ................................. 4,626 286,396 Fifth Third Bancorp............................. 5,001 202,991 First Horizon National Corp. ................... 9,605 376,612 Huntington Bancshares, Inc. .................... 10,505 233,001 KeyCorp......................................... 6,821 243,373 National City Corp. ............................ 9,961 364,074 PNC Financial Services Group, Inc. ............. 2,761 204,590 Regions Financial Corp. ........................ 8,153 286,089 SunTrust Banks, Inc. ........................... 2,116 178,633 U.S. Bancorp.................................... 4,892 168,040 Wachovia Corp. ................................. 5,129 284,865 Wells Fargo & Co. .............................. 3,792 136,095 ------------ TOTAL COMMERCIAL BANKS 3,167,906 ------------
MARKET SHARES VALUE -------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES 1.6% Allied Waste Industries, Inc.*.................. 15,649 $209,227 R.R. Donnelley & Sons Co. ...................... 9,234 371,207 Waste Management, Inc. ......................... 3,405 127,381 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 707,815 ------------ CONTAINERS & PACKAGING 1.4% Bemis Co., Inc. ................................ 4,313 143,278 Temple-Inland, Inc. ............................ 8,074 478,304 ------------ TOTAL CONTAINERS & PACKAGING 621,582 ------------ DISTRIBUTORS 0.4% Genuine Parts Co. .............................. 3,785 187,017 ------------ TOTAL DISTRIBUTORS 187,017 ------------ DIVERSIFIED FINANCIAL SERVICES 2.4% Bank of America Corp. .......................... 4,391 223,502 CIT Group, Inc. ................................ 4,307 256,913 Citigroup, Inc. ................................ 4,754 254,909 JPMorgan Chase & Co. ........................... 6,106 318,123 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 1,053,447 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 6.1% AT&T, Inc. ..................................... 7,766 300,699 CenturyTel, Inc. ............................... 3,857 177,615 Citizens Communications Co. .................... 24,748 385,326 Embarq Corp. ................................... 13,933 836,537 Verizon Communications, Inc. ................... 12,037 459,573 Windstream Corp.*............................... 32,980 482,168 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 2,641,918 ------------ ELECTRIC UTILITIES 7.9% American Electric Power Co., Inc. .............. 6,491 325,978 Duke Energy Corp. .............................. 15,720 322,574 Entergy Corp. .................................. 1,679 189,962 FirstEnergy Corp. .............................. 4,457 305,037 FPL Group, Inc. ................................ 2,973 191,372 Integrys Energy Group, Inc. .................... 12,871 722,063 Pinnacle West Capital Corp. .................... 8,982 433,741 PPL Corp. ...................................... 4,079 177,885 Progress Energy, Inc. .......................... 9,325 471,379 Southern Co. ................................... 7,833 296,009 ------------ TOTAL ELECTRIC UTILITIES 3,436,000 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS 2.5% Sanmina-SCI Corp.*.............................. 196,973 679,557 Solectron Corp.*................................ 125,003 418,760 ------------ TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,098,317 ------------ FOOD & STAPLES RETAILING 3.5% Costco Wholesale Corp. ......................... 3,381 181,120 Kroger Co. ..................................... 12,721 375,397 Safeway, Inc. .................................. 7,235 262,631 SUPERVALU, Inc. ................................ 15,655 718,564 ------------ TOTAL FOOD & STAPLES RETAILING 1,537,712 ------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 32 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD PRODUCTS 3.0% ConAgra Foods, Inc. ............................ 8,970 $220,483 Kraft Foods, Inc. .............................. 5,197 173,943 Sara Lee Corp. ................................. 19,127 313,874 Tyson Foods, Inc. -- Class A.................... 28,158 590,192 ------------ TOTAL FOOD PRODUCTS 1,298,492 ------------ GAS UTILITIES 0.9% Nicor, Inc. .................................... 7,279 372,976 ------------ TOTAL GAS UTILITIES 372,976 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 0.3% Bausch & Lomb, Inc. ............................ 2,140 125,896 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 125,896 ------------ HEALTH CARE PROVIDERS & SERVICES 3.0% AmerisourceBergen Corp. ........................ 8,957 447,761 McKesson Corp. ................................. 6,392 376,041 Medco Health Solutions, Inc.*................... 2,582 201,448 Tenet Healthcare Corp.*......................... 35,610 264,226 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 1,289,476 ------------ HOTELS, RESTAURANTS & LEISURE 0.4% Wyndham Worldwide Corp.*........................ 5,470 189,262 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 189,262 ------------ HOUSEHOLD DURABLES 2.2% Leggett & Platt, Inc. .......................... 11,976 281,675 Newell Rubbermaid, Inc.*........................ 4,389 134,611 Stanley Works................................... 2,238 130,431 Whirlpool Corp. ................................ 3,938 417,546 ------------ TOTAL HOUSEHOLD DURABLES 964,263 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.8% Dynegy, Inc.*................................... 36,252 341,131 ------------ TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 341,131 ------------ INSURANCE 7.8% ACE Ltd. ....................................... 5,321 316,387 Allstate Corp................................... 4,717 293,963 Chubb Corp. .................................... 3,334 179,469 Cincinnati Financial Corp. ..................... 7,480 338,395 Genworth Financial, Inc. -- Class A............. 6,496 237,039 Hartford Financial Services Group, Inc. ........ 2,764 279,717 Lincoln National Corp. ......................... 3,603 256,353 SAFECO Corp. ................................... 3,165 211,232 Travelers Cos., Inc. (The)...................... 6,085 329,199 UnumProvident Corp. ............................ 18,078 449,781 XL Capital Ltd. -- Class A...................... 6,126 477,706 ------------ TOTAL INSURANCE 3,369,241 ------------
MARKET SHARES VALUE -------------------------------------------------------------------------- IT SERVICES 1.2% Computer Sciences Corp.*........................ 4,433 $246,209 Electronic Data Systems Corp. .................. 4,139 121,024 Unisys Corp.*................................... 18,127 142,116 ------------ TOTAL IT SERVICES 509,349 ------------ LEISURE EQUIPMENT & PRODUCTS 1.5% Brunswick Corp. ................................ 11,285 369,696 Eastman Kodak Co. .............................. 10,981 273,537 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 643,233 ------------ MACHINERY 1.4% Cummins, Inc. .................................. 4,090 376,934 PACCAR, Inc. ................................... 2,547 213,897 ------------ TOTAL MACHINERY 590,831 ------------ MEDIA 2.7% CBS Corp. -- Class B............................ 11,928 378,953 Dow Jones & Co., Inc. .......................... 3,787 137,582 Gannett Co., Inc. .............................. 2,352 134,205 New York Times Co. -- Class A................... 7,517 175,898 Time Warner, Inc. .............................. 6,880 141,934 Tribune Co. .................................... 6,323 207,394 ------------ TOTAL MEDIA 1,175,966 ------------ METALS & MINING 1.6% Alcoa, Inc. .................................... 7,816 277,390 Freeport-McMoRan Copper & Gold, Inc. -- Class B............................................. 2,738 183,884 United States Steel Corp. ...................... 2,157 219,022 ------------ TOTAL METALS & MINING 680,296 ------------ MULTI-UTILITIES 11.4% Ameren Corp. ................................... 6,348 333,714 CenterPoint Energy, Inc. ....................... 23,160 436,103 CMS Energy Corp. ............................... 18,301 338,935 Consolidated Edison, Inc. ...................... 8,371 429,097 Dominion Resources, Inc. ....................... 3,100 282,720 DTE Energy Co. ................................. 10,497 531,043 KeySpan Corp. .................................. 11,911 493,235 NiSource, Inc. ................................. 20,402 501,685 PG&E Corp. ..................................... 4,862 246,017 Public Service Enterprise Group, Inc. .......... 3,771 326,003 Sempra Energy................................... 3,787 240,399 TECO Energy, Inc. .............................. 18,312 328,700 Xcel Energy, Inc. .............................. 19,072 459,445 ------------ TOTAL MULTI-UTILITIES 4,947,096 ------------ MULTILINE RETAIL 1.5% Dillard's, Inc. -- Class A...................... 15,006 519,658 Federated Department Stores, Inc. .............. 2,989 131,277 ------------ TOTAL MULTILINE RETAIL 650,935 ------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE -------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) OIL, GAS & CONSUMABLE FUELS 2.3% ConocoPhillips.................................. 5,864 $406,668 Hess Corp.*..................................... 4,980 282,615 Marathon Oil Corp. ............................. 3,022 306,884 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 996,167 ------------ PAPER & FOREST PRODUCTS 2.4% International Paper Co. ........................ 7,165 270,264 MeadWestvaco Corp. ............................. 11,627 387,877 Weyerhaeuser Co. ............................... 4,691 371,621 ------------ TOTAL PAPER & FOREST PRODUCTS 1,029,762 ------------ PHARMACEUTICALS 0.4% Bristol-Myers Squibb Co. ....................... 5,590 161,327 ------------ TOTAL PHARMACEUTICALS 161,327 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 1.3% Apartment Investment & Management Co. -- Class A............................................. 3,782 209,145 Boston Properties, Inc. ........................ 1,434 168,581 Plum Creek Timber Co., Inc. .................... 4,917 195,205 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 572,931 ------------ ROAD & RAIL 1.2% Ryder System, Inc. ............................. 6,731 354,320 Union Pacific Corp. ............................ 1,514 172,974 ------------ TOTAL ROAD & RAIL 527,294 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.2% Micron Technology, Inc.*........................ 8,756 100,431 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 100,431 ------------ SPECIALTY RETAIL 2.0% AutoNation, Inc.*............................... 20,989 429,015 Circuit City Stores, Inc. ...................... 8,851 154,450 OfficeMax, Inc. ................................ 5,401 265,837 ------------ TOTAL SPECIALTY RETAIL 849,302 ------------
MARKET SHARES VALUE -------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS 0.5% Jones Apparel Group, Inc. ...................... 6,180 $206,350 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 206,350 ------------ THRIFTS & MORTGAGE FINANCE 2.6% Federal National Mortgage Association........... 12,535 738,562 Washington Mutual, Inc. ........................ 9,205 386,426 ------------ TOTAL THRIFTS & MORTGAGE FINANCE 1,124,988 ------------ TOBACCO 0.3% Reynolds American, Inc. ........................ 2,321 149,147 ------------ TOTAL TOBACCO 149,147 ------------ WIRELESS TELECOMMUNICATION SERVICES 1.4% ALLTEL Corp. ................................... 4,797 300,724 Sprint Nextel Corp. ............................ 16,204 324,566 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 625,290 ------------ TOTAL COMMON STOCKS (Cost $39,886,710) 43,238,797 ------------ SHORT TERM INVESTMENTS 0.2% SSgA Prime Money Market Fund.................... 102,225 102,225 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $102,225) 102,225 ------------ TOTAL INVESTMENTS 99.9% (Cost $39,988,935) 43,341,022 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 42,131 ------------ NET ASSETS--100.0% $43,383,153 --------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 34 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS 99.7% AEROSPACE & DEFENSE 2.5% General Dynamics Corp. ......................... 4,089 $320,986 L-3 Communications Holdings, Inc. .............. 4,335 389,847 Rockwell Collins, Inc. ......................... 5,253 344,965 United Technologies Corp. ...................... 3,478 233,478 ----------- TOTAL AEROSPACE & DEFENSE 1,289,276 ----------- AIR FREIGHT & LOGISTICS 0.6% C.H. Robinson Worldwide, Inc. .................. 5,931 317,071 ----------- TOTAL AIR FREIGHT & LOGISTICS 317,071 ----------- AUTOMOBILES 0.8% Harley-Davidson, Inc. .......................... 6,419 406,451 ----------- TOTAL AUTOMOBILES 406,451 ----------- BEVERAGES 2.4% Anheuser-Busch Cos., Inc. ...................... 6,831 336,017 Brown-Forman Corp. -- Class B................... 3,197 204,384 Pepsi Bottling Group, Inc. ..................... 12,669 415,670 PepsiCo, Inc. .................................. 3,774 249,424 ----------- TOTAL BEVERAGES 1,205,495 ----------- BIOTECHNOLOGY 2.8% Amgen, Inc.*.................................... 4,900 314,286 Celgene Corp.*.................................. 3,989 243,967 Genzyme Corp.*.................................. 3,144 205,335 Gilead Sciences, Inc.*.......................... 7,941 648,938 ----------- TOTAL BIOTECHNOLOGY 1,412,526 ----------- BUILDING PRODUCTS 0.7% American Standard Cos., Inc. ................... 6,339 349,025 ----------- TOTAL BUILDING PRODUCTS 349,025 ----------- CAPITAL MARKETS 0.8% Federated Investors, Inc. -- Class B............ 10,418 397,551 ----------- TOTAL CAPITAL MARKETS 397,551 ----------- CHEMICALS 1.9% Ecolab, Inc. ................................... 6,706 288,291 International Flavors & Fragrances, Inc. ....... 4,250 206,847 Praxair, Inc. .................................. 2,896 186,937 Sigma-Aldrich Corp. ............................ 6,969 293,256 ----------- TOTAL CHEMICALS 975,331 ----------- COMMERCIAL BANKS 0.6% Commerce Bancorp, Inc. ......................... 8,432 281,966 ----------- TOTAL COMMERCIAL BANKS 281,966 ----------- COMMERCIAL SERVICES & SUPPLIES 0.8% Cintas Corp. ................................... 4,735 177,420 Pitney Bowes, Inc. ............................. 4,981 239,088 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 416,508 ----------- COMMUNICATIONS EQUIPMENT 1.0% Cisco Systems, Inc.*............................ 9,216 246,436 QUALCOMM, Inc. ................................. 6,112 267,705 ----------- TOTAL COMMUNICATIONS EQUIPMENT 514,141 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMPUTERS & PERIPHERALS 3.1% Dell, Inc.*..................................... 14,459 $364,511 International Business Machines Corp. .......... 2,565 262,169 Lexmark International, Inc. -- Class A*......... 4,532 246,994 Network Appliance, Inc.*........................ 5,769 214,665 QLogic Corp.*................................... 14,758 263,873 SanDisk Corp.*.................................. 5,794 251,749 ----------- TOTAL COMPUTERS & PERIPHERALS 1,603,961 ----------- CONSUMER FINANCE 1.8% American Express Co. ........................... 3,395 205,975 Capital One Financial Corp. .................... 4,670 346,794 SLM Corp. ...................................... 7,100 382,193 ----------- TOTAL CONSUMER FINANCE 934,962 ----------- CONTAINERS & PACKAGING 1.1% Ball Corp. ..................................... 7,006 355,134 Pactiv Corp.*................................... 6,307 218,096 ----------- TOTAL CONTAINERS & PACKAGING 573,230 ----------- DIVERSIFIED CONSUMER SERVICES 2.0% Apollo Group, Inc. -- Class A*.................. 13,273 627,813 H&R Block, Inc. ................................ 18,310 413,989 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 1,041,802 ----------- DIVERSIFIED FINANCIAL SERVICES 1.6% Chicago Mercantile Exchange Holdings, Inc. ..... 784 405,132 Moody's Corp. .................................. 6,574 434,673 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 839,805 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Jabil Circuit, Inc. ............................ 6,685 155,761 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS.......... 155,761 ----------- ENERGY EQUIPMENT & SERVICES 2.4% BJ Services Co. ................................ 9,436 270,436 Nabors Industries Ltd.*......................... 8,821 283,331 National-Oilwell Varco, Inc.*................... 2,917 247,507 Noble Corp. .................................... 1,652 139,115 Smith International, Inc. ...................... 6,033 316,370 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 1,256,759 ----------- FOOD & STAPLES RETAILING 1.7% Sysco Corp. .................................... 9,214 301,666 Wal-Mart Stores, Inc. .......................... 6,175 295,906 Walgreen Co. ................................... 6,561 288,028 ----------- TOTAL FOOD & STAPLES RETAILING 885,600 ----------- FOOD PRODUCTS 2.5% Campbell Soup Co. .............................. 6,371 249,106 Hershey Co. (The)............................... 4,595 252,541 Kellogg Co. .................................... 5,456 288,677 McCormick & Co, Inc. ........................... 5,528 205,199 Wm. Wrigley Jr. Co. ............................ 4,893 288,100 ----------- TOTAL FOOD PRODUCTS 1,283,623 ----------- GAS UTILITIES 0.5% Questar Corp. .................................. 2,397 232,821 ----------- TOTAL GAS UTILITIES 232,821 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) HEALTH CARE EQUIPMENT & SUPPLIES 8.2% Baxter International, Inc. ..................... 3,773 $213,665 Becton Dickinson & Co. ......................... 3,015 237,250 Biomet, Inc. ................................... 9,152 395,366 Boston Scientific Corp.*........................ 17,132 264,518 C.R. Bard, Inc. ................................ 2,886 239,913 Hospira, Inc.*.................................. 18,039 731,482 Medtronic, Inc. ................................ 5,953 315,092 St Jude Medical, Inc.*.......................... 9,121 390,288 Stryker Corp. .................................. 7,115 462,048 Varian Medical Systems, Inc.*................... 8,275 349,288 Zimmer Holdings, Inc.*.......................... 6,850 619,788 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 4,218,698 ----------- HEALTH CARE PROVIDERS & SERVICES 6.6% Cardinal Health, Inc. .......................... 5,202 363,880 Coventry Health Care, Inc.*..................... 10,838 626,762 Express Scripts, Inc.*.......................... 7,735 739,079 Humana, Inc.*................................... 3,663 231,648 Laboratory Corp. of America Holdings*........... 2,434 192,140 Patterson Cos., Inc.*........................... 10,536 379,928 Quest Diagnostics, Inc. ........................ 7,461 364,768 UnitedHealth Group, Inc. ....................... 8,939 474,304 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 3,372,509 ----------- HEALTH CARE TECHNOLOGY 0.6% IMS Health, Inc. ............................... 11,158 327,264 ----------- TOTAL HEALTH CARE TECHNOLOGY 327,264 ----------- HOTELS, RESTAURANTS & LEISURE 2.6% Darden Restaurants, Inc. ....................... 7,868 326,364 International Game Technology, Inc. ............ 10,034 382,697 Starbucks Corp.*................................ 11,484 356,234 Yum! Brands, Inc. .............................. 4,563 282,267 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 1,347,562 ----------- HOUSEHOLD DURABLES 2.2% Black & Decker Corp. ........................... 3,311 300,374 D.R. Horton, Inc. .............................. 18,378 407,624 Harman International Industries, Inc. .......... 3,347 407,966 ----------- TOTAL HOUSEHOLD DURABLES 1,115,964 ----------- HOUSEHOLD PRODUCTS 1.7% Clorox Co. ..................................... 4,595 308,233 Colgate-Palmolive Co. .......................... 4,425 299,750 Procter & Gamble Co. ........................... 4,169 268,108 ----------- TOTAL HOUSEHOLD PRODUCTS 876,091 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.4% AES Corp.*...................................... 8,929 196,349 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 196,349 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------- INSURANCE 2.1% Ambac Financial Group, Inc. .................... 4,019 $368,944 American International Group, Inc. ............. 3,531 246,853 Progressive Corp. .............................. 21,016 484,839 ----------- TOTAL INSURANCE 1,100,636 ----------- INTERNET & CATALOG RETAIL 1.8% Amazon.Com, Inc.*............................... 15,428 946,199 ----------- TOTAL INTERNET & CATALOG RETAIL 946,199 ----------- INTERNET SOFTWARE & SERVICES 3.0% eBay, Inc.*..................................... 15,763 534,996 Google, Inc. -- Class A*........................ 1,286 606,195 Yahoo!, Inc.*................................... 13,337 373,969 ----------- TOTAL INTERNET SOFTWARE & SERVICES 1,515,160 ----------- IT SERVICES 4.8% Affiliated Computer Services, Inc. -- Class A*............................................ 6,234 373,479 Automatic Data Processing, Inc. ................ 4,099 183,471 Cognizant Technology Solutions Corp. -- Class A*............................................ 6,878 614,893 Fidelity National Information Services, Inc. ... 3,146 158,967 First Data Corp. ............................... 16,431 532,364 Fiserv, Inc.*................................... 7,263 386,174 Paychex, Inc. .................................. 6,425 238,368 ----------- TOTAL IT SERVICES 2,487,716 ----------- LIFE SCIENCES TOOLS & SERVICES 1.4% Applera Corp. -- Applied Biosystems Group....... 3,847 120,180 Millipore Corp.*................................ 2,271 167,668 Waters Corp.*................................... 6,912 410,780 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 698,628 ----------- MACHINERY 1.1% Danaher Corp. .................................. 3,965 282,268 ITT Corp. ...................................... 4,405 281,083 ----------- TOTAL MACHINERY 563,351 ----------- MEDIA 1.0% McGraw-Hill Cos., Inc. ......................... 3,182 208,516 Omnicom Group, Inc. ............................ 2,705 283,241 ----------- TOTAL MEDIA 491,757 ----------- METALS & MINING 1.0% Newmont Mining Corp. (Holding Co.).............. 4,917 205,039 Nucor Corp. .................................... 5,036 319,584 ----------- TOTAL METALS & MINING 524,623 ----------- MULTILINE RETAIL 0.7% Kohl's Corp.*................................... 5,096 377,308 ----------- TOTAL MULTILINE RETAIL 377,308 ----------- OIL, GAS & CONSUMABLE FUELS 6.7% Anadarko Petroleum Corp. ....................... 7,223 337,025 Apache Corp. ................................... 6,987 506,558 Chesapeake Energy Corp. ........................ 11,547 389,711 Devon Energy Corp. ............................. 6,387 465,421 EOG Resources, Inc. ............................ 5,978 439,024 Exxon Mobil Corp. .............................. 3,258 258,620
See Notes to Financial Statements. SEMI-ANNUAL REPORT 36 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Murphy Oil Corp. ............................... 7,142 $395,953 XTO Energy, Inc. ............................... 12,375 671,591 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 3,463,903 ----------- PERSONAL PRODUCTS 1.3% Avon Products, Inc. ............................ 9,709 386,418 Estee Lauder Cos., Inc -- Class A............... 5,801 298,288 ----------- TOTAL PERSONAL PRODUCTS 684,706 ----------- PHARMACEUTICALS 3.7% Allergan, Inc. ................................. 1,399 169,559 Barr Pharmaceuticals, Inc.*..................... 6,751 326,478 Forest Laboratories, Inc.*...................... 11,118 591,589 Johnson & Johnson............................... 4,136 265,614 Mylan Laboratories, Inc. ....................... 14,365 315,024 Wyeth........................................... 4,360 241,980 ----------- TOTAL PHARMACEUTICALS 1,910,244 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.4% KLA-Tencor Corp. ............................... 2,405 133,598 National Semiconductor Corp. ................... 10,356 272,363 NVIDIA Corp.*................................... 10,195 335,313 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 741,274 ----------- SOFTWARE 4.4% Adobe Systems, Inc.*............................ 7,212 299,731 Autodesk, Inc.*................................. 5,978 246,712 Citrix Systems, Inc.*........................... 9,441 307,777 Electronic Arts, Inc.*.......................... 7,694 387,855 Intuit, Inc.*................................... 16,623 472,924 Oracle Corp.*................................... 15,830 297,604 Symantec Corp.*................................. 15,217 267,819 ----------- TOTAL SOFTWARE 2,280,422 ----------- SPECIALTY RETAIL 7.4% Abercrombie & Fitch Co. -- Class A.............. 5,542 452,560 AutoZone, Inc.*................................. 3,768 501,295
MARKET SHARES VALUE ------------------------------------------------------------------------- Bed Bath & Beyond, Inc.*........................ 11,732 $477,962 Best Buy Co., Inc. ............................. 7,508 350,248 Home Depot, Inc. ............................... 8,145 308,451 Lowe's Cos., Inc. .............................. 12,133 370,784 RadioShack Corp. ............................... 16,949 492,707 Staples, Inc. .................................. 8,337 206,758 Tiffany & Co. .................................. 5,432 259,052 TJX Cos., Inc. ................................. 14,048 391,799 ----------- TOTAL SPECIALTY RETAIL 3,811,616 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.8% Coach, Inc.*.................................... 13,708 669,362 Liz Claiborne, Inc. ............................ 5,835 260,941 Nike, Inc. -- Class B........................... 5,390 290,306 Polo Ralph Lauren Corp. ........................ 2,394 220,511 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 1,441,120 ----------- THRIFTS & MORTGAGE FINANCE 0.9% Countrywide Financial Corp. .................... 12,622 468,024 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 468,024 ----------- TOTAL COMMON STOCKS (Cost $48,764,230) 51,334,789 ----------- SHORT TERM INVESTMENTS 0.3% SSgA Prime Money Market Fund.................... 143,428 143,428 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $143,428) 143,428 ----------- TOTAL INVESTMENTS 100.0% (Cost $48,907,658) 51,478,217 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 7,316 ----------- NET ASSETS--100.0% $51,485,533 -------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 37 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.7% AIRLINES 0.2% Alaska Air Group, Inc.*......................... 1,760 $52,096 ----------- TOTAL AIRLINES 52,096 ----------- AUTO COMPONENTS 6.1% ArvinMeritor, Inc. ............................. 11,154 230,330 Bandag, Inc. ................................... 3,307 166,805 BorgWarner, Inc. ............................... 1,817 141,563 Lear Corp.*..................................... 14,538 533,835 Modine Manufacturing Co. ....................... 13,043 301,685 ----------- TOTAL AUTO COMPONENTS 1,374,218 ----------- BEVERAGES 0.7% PepsiAmericas, Inc. ............................ 6,409 154,713 ----------- TOTAL BEVERAGES 154,713 ----------- CHEMICALS 8.7% Cabot Corp. .................................... 1,483 67,180 Chemtura Corp. ................................. 21,294 234,873 Cytec Industries, Inc. ......................... 1,967 107,988 Ferro Corp. .................................... 12,664 263,538 Lubrizol Corp. ................................. 2,655 159,141 Lyondell Chemical Co. .......................... 15,239 474,238 Olin Corp. ..................................... 18,381 315,050 RPM International, Inc. ........................ 7,897 167,969 Sensient Technologies Corp. .................... 5,485 143,597 ----------- TOTAL CHEMICALS 1,933,574 ----------- COMMERCIAL BANKS 1.8% Associated Banc-Corp. .......................... 3,414 110,545 Colonial BancGroup, Inc. ....................... 3,066 73,768 FirstMerit Corp. ............................... 6,225 129,978 Greater Bay Bancorp............................. 3,573 92,148 ----------- TOTAL COMMERCIAL BANKS 406,439 ----------- COMMERCIAL SERVICES & SUPPLIES 3.0% Deluxe Corp. ................................... 8,008 303,103 Kelly Services, Inc. ........................... 9,542 273,855 Manpower, Inc. ................................. 1,261 101,195 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 678,153 ----------- COMMUNICATIONS EQUIPMENT 0.5% Andrew Corp.*................................... 10,616 115,927 ----------- TOTAL COMMUNICATIONS EQUIPMENT 115,927 ----------- CONSUMER FINANCE 0.4% AmeriCredit Corp.*.............................. 3,838 96,833 ----------- TOTAL CONSUMER FINANCE 96,833 ----------- CONTAINERS & PACKAGING 1.3% Packaging Corp. of America...................... 7,638 189,117 Sonoco Products Co. ............................ 2,285 97,432 ----------- TOTAL CONTAINERS & PACKAGING 286,549 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ ELECTRIC UTILITIES 8.0% DPL, Inc. ...................................... 3,373 $105,744 Duquesne Light Holdings, Inc. .................. 6,750 134,595 Great Plains Energy, Inc. ...................... 7,887 257,432 Hawaiian Electric Industries, Inc. ............. 8,562 225,352 Idacorp, Inc. .................................. 3,912 134,768 Northeast Utilities............................. 9,291 298,891 Pepco Holdings, Inc. ........................... 10,923 322,447 Sierra Pacific Resources*....................... 5,080 92,761 Westar Energy, Inc. ............................ 7,677 208,968 ----------- TOTAL ELECTRIC UTILITIES 1,780,958 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 6.2% Arrow Electronics, Inc.*........................ 5,187 204,990 Avnet, Inc.*.................................... 10,369 424,092 Ingram Micro, Inc. -- Class A*.................. 11,951 234,479 KEMET Corp.*.................................... 11,543 97,885 Tech Data Corp.*................................ 4,620 164,195 Vishay Intertechnology, Inc.*................... 15,025 250,166 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,375,807 ----------- FOOD & STAPLES RETAILING 1.9% BJ's Wholesale Club, Inc.*...................... 5,338 184,321 Ruddick Corp. .................................. 7,842 235,495 ----------- TOTAL FOOD & STAPLES RETAILING 419,816 ----------- FOOD PRODUCTS 2.5% J.M. Smucker Co. ............................... 2,580 144,016 Lancaster Colony Corp. ......................... 3,483 147,087 Smithfield Foods, Inc.*......................... 8,776 268,282 ----------- TOTAL FOOD PRODUCTS 559,385 ----------- GAS UTILITIES 4.2% AGL Resources, Inc. ............................ 5,244 228,324 National Fuel Gas Co. .......................... 3,801 178,685 Oneok, Inc. .................................... 5,403 261,559 WGL Holdings, Inc. ............................. 8,018 271,329 ----------- TOTAL GAS UTILITIES 939,897 ----------- HOTELS, RESTAURANTS & LEISURE 0.6% Bob Evans Farms, Inc. .......................... 3,798 139,387 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 139,387 ----------- HOUSEHOLD DURABLES 4.6% American Greetings Corp. -- Class A............. 7,306 185,938 Beazer Homes USA, Inc. ......................... 5,465 182,422 Furniture Brands International, Inc. ........... 26,943 433,243 Tupperware Brands Corp. ........................ 8,365 235,224 ----------- TOTAL HOUSEHOLD DURABLES 1,036,827 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.4% Black Hills Corp. .............................. 8,109 322,819 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 322,819 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 38 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) INDUSTRIAL CONGLOMERATES 0.5% Sequa Corp.*.................................... 873 $102,316 ----------- TOTAL INDUSTRIAL CONGLOMERATES 102,316 ----------- INSURANCE 7.4% American Financial Group, Inc. ................. 4,389 154,800 Fidelity National Financial, Inc. -- Class A.... 6,472 164,971 First American Corp. ........................... 6,829 351,693 Horace Mann Educators Corp. .................... 7,215 151,804 Mercury General Corp. .......................... 3,130 169,489 Ohio Casualty Corp. ............................ 3,704 117,195 Old Republic International Corp. ............... 10,610 225,675 Protective Life Corp. .......................... 2,711 127,146 Unitrin, Inc. .................................. 4,261 200,906 ----------- TOTAL INSURANCE 1,663,679 ----------- LEISURE EQUIPMENT & PRODUCTS 0.5% Callaway Golf Co. .............................. 6,287 112,914 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 112,914 ----------- MACHINERY 2.0% Kennametal, Inc. ............................... 1,176 82,979 Pentair, Inc. .................................. 2,243 72,090 Timken Co. ..................................... 8,581 283,001 ----------- TOTAL MACHINERY 438,070 ----------- MARINE 0.6% Alexander & Baldwin, Inc. ...................... 2,579 137,848 ----------- TOTAL MARINE 137,848 ----------- MEDIA 4.5% Belo Corp. -- Class A........................... 9,983 192,372 Lee Enterprises, Inc. .......................... 5,263 137,785 Media General, Inc. -- Class A.................. 4,873 179,034 Scholastic Corp.*............................... 4,778 147,497 Westwood One, Inc. ............................. 49,944 340,119 ----------- TOTAL MEDIA 996,807 ----------- METALS & MINING 1.3% Worthington Industries.......................... 13,068 290,763 ----------- TOTAL METALS & MINING 290,763 ----------- MULTI-UTILITIES 8.8% Alliant Energy Corp. ........................... 4,027 176,383 Energy East Corp. .............................. 14,470 350,463 NSTAR........................................... 3,328 119,475 OGE Energy Corp. ............................... 5,168 198,658 PNM Resources, Inc. ............................ 5,594 182,085 Puget Energy, Inc. ............................. 12,226 315,675 SCANA Corp. .................................... 6,331 275,588 Vectren Corp. .................................. 8,097 235,380 Wisconsin Energy Corp. ......................... 2,238 109,192 ----------- TOTAL MULTI-UTILITIES 1,962,899 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ MULTILINE RETAIL 0.6% Saks, Inc. ..................................... 6,329 $132,529 ----------- TOTAL MULTILINE RETAIL 132,529 ----------- OIL, GAS & CONSUMABLE FUELS 1.4% Forest Oil Corp.*............................... 3,223 113,579 Overseas Shipholding Group, Inc. ............... 2,889 204,541 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 318,120 ----------- PAPER & FOREST PRODUCTS 2.9% Bowater, Inc. .................................. 14,867 325,439 Glatfelter...................................... 7,537 112,678 Louisiana-Pacific Corp. ........................ 10,426 205,496 ----------- TOTAL PAPER & FOREST PRODUCTS 643,613 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 4.5% Cousins Properties, Inc. ....................... 3,375 113,299 Highwoods Properties, Inc. ..................... 2,753 112,267 Hospitality Properties Trust.................... 3,222 146,698 Liberty Property Trust.......................... 2,543 123,056 Mack-Cali Realty Corp. ......................... 2,454 120,172 Potlatch Corp. ................................. 4,368 189,527 Rayonier, Inc. ................................. 2,686 116,492 Weingarten Realty Investors..................... 1,614 77,246 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 998,757 ----------- ROAD & RAIL 5.6% Avis Budget Group, Inc.*........................ 22,548 634,275 Con-way, Inc. .................................. 2,167 118,383 Werner Enterprises, Inc. ....................... 6,807 128,720 YRC Worldwide, Inc.*............................ 9,345 371,838 ----------- TOTAL ROAD & RAIL 1,253,216 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.3% Fairchild Semiconductor International, Inc.*.... 3,675 64,680 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 64,680 ----------- SPECIALTY RETAIL 1.6% Borders Group, Inc. ............................ 9,931 209,644 Foot Locker, Inc. .............................. 6,023 143,287 ----------- TOTAL SPECIALTY RETAIL 352,931 ----------- THRIFTS & MORTGAGE FINANCE 2.0% Astoria Financial Corp. ........................ 2,478 65,816 First Niagara Financial Group, Inc. ............ 11,027 149,967 Washington Federal, Inc. ....................... 5,894 139,747 Webster Financial Corp. ........................ 1,836 81,610 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 437,140 ----------- TOBACCO 2.0% Universal Corp. ................................ 7,140 447,535 ----------- TOTAL TOBACCO 447,535 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 39 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) TRADING COMPANIES & DISTRIBUTORS 0.7% United Rentals, Inc.*........................... 4,844 $162,274 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 162,274 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.4% Telephone & Data Systems, Inc. ................. 1,404 79,958 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 79,958 ----------- TOTAL COMMON STOCKS (Cost $21,617,484) 22,269,447 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.2% SSgA Prime Money Market Fund.................... 52,076 $52,076 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $52,076) 52,076 ----------- TOTAL INVESTMENTS 99.9% (Cost $21,669,560) 22,321,523 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 18,213 ----------- NET ASSETS--100.0% $22,339,736 ------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 40 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.9% AEROSPACE & DEFENSE 1.2% Alliant Techsystems, Inc.*...................... 2,834 $263,930 ----------- TOTAL AEROSPACE & DEFENSE 263,930 ----------- AIR FREIGHT & LOGISTICS 0.8% Expeditors International Washington, Inc. ...... 4,374 182,833 ----------- TOTAL AIR FREIGHT & LOGISTICS 182,833 ----------- AIRLINES 0.5% Airtran Holdings, Inc.*......................... 10,215 112,467 ----------- TOTAL AIRLINES 112,467 ----------- AUTOMOBILES 0.9% Thor Industries, Inc. .......................... 5,144 204,886 ----------- TOTAL AUTOMOBILES 204,886 ----------- BEVERAGES 1.0% Hansen Natural Corp.*........................... 6,008 229,506 ----------- TOTAL BEVERAGES 229,506 ----------- BIOTECHNOLOGY 1.1% Cephalon, Inc.*................................. 3,018 240,263 ----------- TOTAL BIOTECHNOLOGY 240,263 ----------- CAPITAL MARKETS 4.4% Eaton Vance Corp. .............................. 5,721 218,657 Investors Financial Services Corp. ............. 4,913 304,016 Nuveen Investments, Inc. -- Class A............. 3,111 165,816 SEI Investments Co. ............................ 2,783 169,847 Waddell & Reed Financial, Inc. -- Class A....... 4,862 117,758 ----------- TOTAL CAPITAL MARKETS 976,094 ----------- COMMERCIAL SERVICES & SUPPLIES 4.4% ChoicePoint, Inc.*.............................. 2,951 112,050 Copart, Inc.*................................... 4,930 142,872 Corporate Executive Board Co. .................. 2,291 145,799 Dun & Bradstreet Corp. ......................... 999 90,210 Mine Safety Appliances Co. ..................... 3,674 154,859 Rollins, Inc. .................................. 7,404 170,810 Stericycle, Inc.*............................... 2,045 178,201 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 994,801 ----------- COMMUNICATIONS EQUIPMENT 0.8% Plantronics, Inc. .............................. 7,329 184,031 ----------- TOTAL COMMUNICATIONS EQUIPMENT 184,031 ----------- COMPUTERS & PERIPHERALS 1.1% Western Digital Corp.*.......................... 13,425 237,354 ----------- TOTAL COMPUTERS & PERIPHERALS 237,354 ----------- CONSTRUCTION & ENGINEERING 0.6% Jacobs Engineering Group, Inc.*................. 2,683 135,304 ----------- TOTAL CONSTRUCTION & ENGINEERING 135,304 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ DIVERSIFIED CONSUMER SERVICES 5.8% Career Education Corp.*......................... 10,763 $317,939 Corinthian Colleges, Inc.*...................... 22,348 309,073 DeVry, Inc. .................................... 3,285 108,372 ITT Educational Services, Inc.*................. 3,172 308,350 Strayer Education, Inc. ........................ 2,086 259,373 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 1,303,107 ----------- DIVERSIFIED FINANCIAL SERVICES 0.8% Leucadia National Corp. ........................ 5,647 170,201 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 170,201 ----------- ELECTRICAL EQUIPMENT 0.9% AMETEK, Inc. ................................... 2,849 103,362 Roper Industries, Inc. ......................... 1,731 97,040 ----------- TOTAL ELECTRICAL EQUIPMENT 200,402 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.5% Amphenol Corp. ................................. 4,381 153,817 CDW Corp. ...................................... 2,444 175,992 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 329,809 ----------- ENERGY EQUIPMENT & SERVICES 2.1% FMC Technologies, Inc.*......................... 1,886 133,680 Patterson-UTI Energy, Inc. ..................... 5,470 133,413 Superior Energy Services, Inc.*................. 5,818 211,368 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 478,461 ----------- GAS UTILITIES 0.6% Equitable Resources, Inc. ...................... 2,426 126,176 ----------- TOTAL GAS UTILITIES 126,176 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 4.6% Cytyc Corp.*.................................... 9,191 323,799 Dentsply International, Inc. ................... 4,559 152,316 Edwards Lifesciences Corp.*..................... 1,700 83,300 Gen-Probe, Inc.*................................ 5,751 293,934 ResMed, Inc.*................................... 4,286 181,126 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,034,475 ----------- HEALTH CARE PROVIDERS & SERVICES 5.7% Apria Healthcare Group, Inc.*................... 8,408 266,870 Community Health Systems, Inc.*................. 7,244 266,579 Health Management Associates, Inc. -- Class A... 18,309 195,723 Henry Schein, Inc.*............................. 2,794 145,651 Lincare Holdings, Inc.*......................... 5,701 224,848 Universal Health Services, Inc. -- Class B...... 2,888 175,359 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,275,030 ----------- HEALTH CARE TECHNOLOGY 0.7% Cerner Corp.*................................... 2,849 151,681 ----------- TOTAL HEALTH CARE TECHNOLOGY 151,681 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 41 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) HOTELS, RESTAURANTS & LEISURE 4.5% Applebees International, Inc. .................. 7,478 $203,252 Brinker International, Inc. .................... 5,298 164,768 Cheesecake Factory (The)*....................... 6,613 182,519 International Speedway Corp. -- Class A......... 2,542 125,575 Ruby Tuesday, Inc. ............................. 5,182 138,670 Scientific Games Corp. -- Class A*.............. 5,810 193,415 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 1,008,199 ----------- HOUSEHOLD DURABLES 4.3% Hovnanian Enterprises, Inc. -- Class A*......... 8,253 197,990 NVR, Inc.*...................................... 433 356,792 Ryland Group, Inc. ............................. 4,528 200,590 Toll Brothers, Inc.*............................ 6,907 205,690 ----------- TOTAL HOUSEHOLD DURABLES 961,062 ----------- HOUSEHOLD PRODUCTS 2.1% Church & Dwight Co., Inc. ...................... 3,026 153,509 Energizer Holdings, Inc.*....................... 3,361 326,622 ----------- TOTAL HOUSEHOLD PRODUCTS 480,131 ----------- INSURANCE 3.4% Brown & Brown, Inc. ............................ 8,220 211,665 Everest Re Group Ltd. .......................... 1,635 164,546 HCC Insurance Holdings, Inc. ................... 4,757 145,850 W.R. Berkley Corp. ............................. 7,188 233,538 ----------- TOTAL INSURANCE 755,599 ----------- IT SERVICES 3.9% Alliance Data Systems Corp.*.................... 2,607 165,962 CSG Systems International*...................... 4,269 114,324 DST Systems, Inc.*.............................. 4,048 315,946 Global Payments, Inc. .......................... 3,884 147,514 SRA International, Inc. -- Class A*............. 5,403 131,995 ----------- TOTAL IT SERVICES 875,741 ----------- LIFE SCIENCES TOOLS & SERVICES 3.8% Affymetrix, Inc.*............................... 4,046 106,288 Covance, Inc.*.................................. 1,311 79,316 Invitrogen Corp.*............................... 2,701 176,834 Pharmaceutical Product Development, Inc. ....... 4,961 178,943 Techne Corp.*................................... 3,142 185,284 Ventana Medical Systems, Inc.*.................. 2,669 129,687 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 856,352 ----------- MACHINERY 1.9% Donaldson Co., Inc. ............................ 3,957 142,135 Graco, Inc. .................................... 3,619 142,951 Oshkosh Truck Corp. ............................ 2,501 139,906 ----------- TOTAL MACHINERY 424,992 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ MEDIA 3.2% Catalina Marketing Corp. ....................... 4,169 $132,157 Entercom Communications Corp. -- Class A........ 5,509 152,820 Harte-Hanks, Inc. .............................. 3,740 97,614 John Wiley & Sons, Inc. -- Class A.............. 4,032 150,998 Valassis Communications, Inc.*.................. 9,242 177,077 ----------- TOTAL MEDIA 710,666 ----------- METALS & MINING 2.3% Commercial Metals Co. .......................... 7,491 251,173 Steel Dynamics, Inc. ........................... 6,085 269,627 ----------- TOTAL METALS & MINING 520,800 ----------- MULTILINE RETAIL 2.0% 99 Cents Only Stores*........................... 15,730 224,939 Dollar Tree Stores, Inc.*....................... 5,576 219,248 ----------- TOTAL MULTILINE RETAIL 444,187 ----------- OFFICE ELECTRONICS 0.5% Zebra Technologies Corp. -- Class A*............ 2,893 115,112 ----------- TOTAL OFFICE ELECTRONICS 115,112 ----------- OIL, GAS & CONSUMABLE FUELS 6.3% Denbury Resources, Inc.*........................ 6,322 209,195 Frontier Oil Corp. ............................. 7,980 281,933 Newfield Exploration Co.*....................... 4,581 200,419 Pioneer Natural Resources Co. .................. 5,377 269,925 Pogo Producing Co. ............................. 5,158 248,925 Quicksilver Resources, Inc.*.................... 3,003 125,706 Southwestern Energy Co.*........................ 1,835 77,070 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 1,413,173 ----------- PHARMACEUTICALS 3.6% Medicis Pharmaceutical Corp. -- Class A......... 4,253 129,291 Par Pharmaceutical Cos., Inc.*.................. 14,214 382,783 Sepracor, Inc.*................................. 5,401 289,926 ----------- TOTAL PHARMACEUTICALS 802,000 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.8% Cree, Inc.*..................................... 8,110 165,444 Silicon Laboratories, Inc.*..................... 7,485 245,583 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 411,027 ----------- SOFTWARE 2.9% Activision, Inc.*............................... 4,468 89,360 Fair Isaac Corp. ............................... 3,014 107,630 Jack Henry & Associates, Inc. .................. 5,443 129,271 Macrovision Corp.*.............................. 5,644 136,980 McAfee, Inc.*................................... 5,419 176,063 ----------- TOTAL SOFTWARE 639,304 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 42 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) SPECIALTY RETAIL 12.5% Advance Auto Parts, Inc. ....................... 5,552 $228,742 Aeropostale, Inc.*.............................. 9,747 401,089 American Eagle Outfitters....................... 4,558 134,324 Chico's FAS, Inc.*.............................. 13,257 349,455 Dick's Sporting Goods, Inc.*.................... 3,294 184,760 GameStop Corp. -- Class A*...................... 8,428 279,557 O'Reilly Automotive, Inc.*...................... 4,571 162,728 Pacific Sunwear Of California*.................. 10,325 216,102 Petsmart, Inc. ................................. 6,135 203,621 Ross Stores, Inc. .............................. 6,616 219,320 Urban Outfitters, Inc.*......................... 8,784 226,276 Williams-Sonoma, Inc. .......................... 5,663 199,451 ----------- TOTAL SPECIALTY RETAIL 2,805,425 ----------- TEXTILES, APPAREL & LUXURY GOODS 0.7% Timberland Co. -- Class A*...................... 5,985 154,473 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 154,473 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ TRADING COMPANIES & DISTRIBUTORS 0.7% Fastenal Co. ................................... 3,722 $153,049 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 153,049 ----------- TOTAL COMMON STOCKS (Cost $21,456,874) 22,362,103 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 29,109 29,109 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $29,109) 29,109 ----------- TOTAL INVESTMENTS 100.0% (Cost $21,485,983) 22,391,212 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (3,087) ----------- NET ASSETS--100.0% $22,388,125 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 43 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS 99.5% AEROSPACE & DEFENSE 0.4% Applied Signal Technology, Inc. ................ 6,072 $101,220 ----------- TOTAL AEROSPACE & DEFENSE 101,220 ----------- AIRLINES 1.7% Frontier Airlines Holdings, Inc.*............... 16,986 100,557 Mesa Air Group, Inc.*........................... 28,696 193,985 SkyWest, Inc. .................................. 4,322 117,602 ----------- TOTAL AIRLINES 412,144 ----------- AUTO COMPONENTS 2.4% Standard Motor Products, Inc. .................. 17,025 312,068 Superior Industries International............... 11,679 266,865 ----------- TOTAL AUTO COMPONENTS 578,933 ----------- AUTOMOBILES 2.3% Coachmen Industries, Inc. ...................... 19,958 206,366 Fleetwood Enterprises, Inc.*.................... 14,636 121,918 Monaco Coach Corp. ............................. 14,014 214,834 ----------- TOTAL AUTOMOBILES 543,118 ----------- BUILDING PRODUCTS 1.1% Apogee Enterprises, Inc. ....................... 3,600 86,688 Lennox International, Inc. ..................... 2,055 69,480 Universal Forest Products, Inc. ................ 2,522 117,172 ----------- TOTAL BUILDING PRODUCTS 273,340 ----------- CAPITAL MARKETS 1.3% LaBranche & Co., Inc.*.......................... 13,731 111,770 Piper Jaffray Cos.*............................. 963 61,449 SWS Group, Inc. ................................ 5,046 131,146 ----------- TOTAL CAPITAL MARKETS 304,365 ----------- CHEMICALS 5.4% Arch Chemicals, Inc. ........................... 3,853 116,438 Georgia Gulf Corp. ............................. 11,462 183,048 Material Sciences Corp.*........................ 6,091 56,768 Omnova Solutions, Inc.*......................... 20,432 107,472 Penford Corp. .................................. 7,718 151,119 PolyOne Corp.*.................................. 24,161 158,496 Quaker Chemical Corp. .......................... 9,034 206,517 Schulman A, Inc. ............................... 8,780 203,345 Tronox, Inc. ................................... 7,769 107,756 ----------- TOTAL CHEMICALS 1,290,959 ----------- COMMERCIAL BANKS 3.7% Central Pacific Financial Corp. ................ 1,273 43,740 Community Bank System, Inc. .................... 3,968 81,344 First Bancorp................................... 15,553 195,035 First Commonwealth Financial Corp. ............. 8,178 91,021 First Financial Bancorp......................... 4,811 71,684 Irwin Financial Corp. .......................... 3,154 50,559 Provident Bankshares Corp. ..................... 2,152 68,950
MARKET SHARES VALUE ------------------------------------------------------------------------- South Financial Group, Inc. (The)............... 3,084 $69,791 Sterling Bancorp................................ 4,200 72,702 Susquehanna Bancshares, Inc. ................... 3,576 79,673 Whitney Holding Corp. .......................... 2,096 64,494 ----------- TOTAL COMMERCIAL BANKS 888,993 ----------- COMMERCIAL SERVICES & SUPPLIES 5.1% ABM Industries, Inc. ........................... 4,907 138,083 Angelica Corp. ................................. 5,660 147,386 Bowne & Co., Inc. .............................. 3,767 62,834 CDI Corp. ...................................... 4,392 130,091 Spherion Corp.*................................. 32,722 279,773 Standard Register Co. (The)..................... 20,201 251,704 United Stationers, Inc.*........................ 2,190 130,349 Volt Information Sciences, Inc.*................ 2,560 65,434 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,205,654 ----------- COMMUNICATIONS EQUIPMENT 0.9% Inter-Tel, Inc. ................................ 5,053 127,436 Tollgrade Communications, Inc.*................. 6,666 79,659 ----------- TOTAL COMMUNICATIONS EQUIPMENT 207,095 ----------- COMPUTERS & PERIPHERALS 0.3% Adaptec, Inc.*.................................. 18,310 70,677 ----------- TOTAL COMPUTERS & PERIPHERALS 70,677 ----------- CONSTRUCTION & ENGINEERING 0.5% Shaw Group, Inc.*............................... 1,436 46,570 URS Corp.*...................................... 1,393 60,874 ----------- TOTAL CONSTRUCTION & ENGINEERING 107,444 ----------- CONTAINERS & PACKAGING 2.4% Caraustar Industries, Inc.*..................... 15,955 113,600 Chesapeake Corp. ............................... 20,606 304,145 Rock-Tenn Co. .................................. 4,221 161,495 ----------- TOTAL CONTAINERS & PACKAGING 579,240 ----------- DISTRIBUTORS 1.0% Audiovox Corp. -- Class A*...................... 7,154 102,946 Building Materials Holding Corp. ............... 10,003 145,244 ----------- TOTAL DISTRIBUTORS 248,190 ----------- ELECTRIC UTILITIES 3.5% Allete, Inc. ................................... 1,912 92,560 Central Vermont Public Service Corp. ........... 10,145 326,669 Cleco Corp. .................................... 6,497 182,306 UIL Holdings Corp. ............................. 3,095 105,694 Unisource Energy Corp. ......................... 3,486 133,897 ----------- TOTAL ELECTRIC UTILITIES 841,126 ----------- ELECTRICAL EQUIPMENT 1.7% AO Smith Corp. ................................. 3,552 135,331 C&D Technologies, Inc.*......................... 53,975 271,494 ----------- TOTAL ELECTRICAL EQUIPMENT 406,825 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 44 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ELECTRONIC EQUIPMENT & INSTRUMENTS 4.7% Agilysys, Inc. ................................. 12,361 $259,952 Anixter International, Inc.*.................... 2,597 185,945 Bell Microproducts, Inc.*....................... 25,310 172,108 Brightpoint, Inc.*.............................. 8,553 113,755 CTS Corp. ...................................... 3,534 46,225 Insight Enterprises, Inc.*...................... 6,915 137,055 Methode Electronics, Inc. ...................... 8,670 130,744 Park Electrochemical Corp. ..................... 2,802 77,195 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,122,979 ----------- FOOD & STAPLES RETAILING 4.6% Casey's General Stores, Inc. ................... 3,298 82,945 Longs Drug Stores Corp. ........................ 3,787 207,300 Nash Finch Co. ................................. 12,023 468,536 Performance Food Group Co.*..................... 6,998 218,688 Spartan Stores, Inc. ........................... 4,448 114,580 ----------- TOTAL FOOD & STAPLES RETAILING 1,092,049 ----------- FOOD PRODUCTS 0.5% Lance, Inc. .................................... 5,234 115,828 ----------- TOTAL FOOD PRODUCTS 115,828 ----------- GAS UTILITIES 4.7% Atmos Energy Corp. ............................. 6,443 204,372 Cascade Natural Gas Corp. ...................... 4,767 123,942 Laclede Group, Inc. (The)....................... 5,011 157,296 New Jersey Resources Corp. ..................... 2,016 108,259 Northwest Natural Gas Co. ...................... 2,420 122,960 Piedmont Natural Gas Co. ....................... 3,393 89,541 South Jersey Industries, Inc. .................. 2,143 84,156 Southwest Gas Corp. ............................ 3,018 114,352 UGI Corp. ...................................... 3,842 108,959 ----------- TOTAL GAS UTILITIES 1,113,837 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 2.0% Datascope Corp. ................................ 3,757 139,197 Invacare Corp. ................................. 5,373 100,153 Theragenics Corp.*.............................. 40,169 241,817 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 481,167 ----------- HEALTH CARE PROVIDERS & SERVICES 2.5% Genesis HealthCare Corp.*....................... 2,599 166,336 Gentiva Health Services, Inc.*.................. 3,590 67,205 Owens & Minor, Inc. ............................ 5,208 184,103 RehabCare Group, Inc.*.......................... 10,152 166,289 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 583,933 ----------- HOTELS, RESTAURANTS & LEISURE 1.3% Landry's Restaurants, Inc. ..................... 4,397 130,591 Marcus Corp. ................................... 3,172 68,928 O'Charleys, Inc.*............................... 5,722 120,791 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 320,310 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------- HOUSEHOLD DURABLES 6.5% Bassett Furniture Industries, Inc. ............. 13,754 $194,757 Champion Enterprises, Inc.*..................... 5,585 57,414 Ethan Allen Interiors, Inc. .................... 1,225 43,242 La-Z-Boy, Inc. ................................. 24,581 287,352 Libbey, Inc. ................................... 25,696 479,230 M/I Homes, Inc. ................................ 5,636 167,558 National Presto Industries, Inc. ............... 1,424 84,144 Skyline Corp. .................................. 1,807 59,360 Standard-Pacific Corp. ......................... 8,141 169,740 ----------- TOTAL HOUSEHOLD DURABLES 1,542,797 ----------- HOUSEHOLD PRODUCTS 0.3% Spectrum Brands, Inc.*.......................... 8,684 60,441 ----------- TOTAL HOUSEHOLD PRODUCTS 60,441 ----------- INDUSTRIAL CONGLOMERATES 0.9% Standex International Corp. .................... 4,700 128,592 Tredegar Corp. ................................. 3,493 81,631 ----------- TOTAL INDUSTRIAL CONGLOMERATES 210,223 ----------- INSURANCE 3.7% LandAmerica Financial Group, Inc. .............. 4,536 364,468 Presidential Life Corp. ........................ 4,663 88,644 Safety Insurance Group, Inc. ................... 1,025 41,061 SCPIE Holdings, Inc.*........................... 1,736 37,897 Selective Insurance Group....................... 2,779 72,476 Stewart Information Services Corp. ............. 6,830 274,703 ----------- TOTAL INSURANCE 879,249 ----------- INTERNET SOFTWARE & SERVICES 1.6% MIVA, Inc.*..................................... 59,396 255,403 United Online, Inc. ............................ 9,410 135,786 ----------- TOTAL INTERNET SOFTWARE & SERVICES 391,189 ----------- IT SERVICES 1.1% Ciber, Inc.*.................................... 17,215 140,302 Startek, Inc. .................................. 12,262 117,838 ----------- TOTAL IT SERVICES 258,140 ----------- LEISURE EQUIPMENT & PRODUCTS 1.4% Arctic Cat, Inc. ............................... 8,059 143,450 Jakks Pacific, Inc.*............................ 3,081 74,037 K2, Inc.*....................................... 8,169 123,270 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 340,757 ----------- MACHINERY 3.1% Albany International Corp. -- Class A........... 2,042 78,209 Barnes Group, Inc. ............................. 2,853 69,328 Briggs & Stratton Corp. ........................ 7,069 209,737 Lydall, Inc.*................................... 12,433 180,776 Mueller Industries, Inc. ....................... 2,146 70,389 Wabash National Corp. .......................... 7,760 120,745 ----------- TOTAL MACHINERY 729,184 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 45 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) MEDIA 0.4% Radio One, Inc. -- Class D*..................... 12,616 $89,069 ----------- TOTAL MEDIA 89,069 ----------- METALS & MINING 5.3% AM Castle & Co. ................................ 1,991 67,495 Gibraltar Industries, Inc. ..................... 5,522 123,141 Quanex Corp. ................................... 2,157 92,816 Ryerson, Inc. .................................. 11,389 468,543 Steel Technologies, Inc. ....................... 17,034 509,998 ----------- TOTAL METALS & MINING 1,261,993 ----------- MULTI-UTILITIES 1.2% Avista Corp. ................................... 5,735 135,288 CH Energy Group, Inc. .......................... 3,165 151,857 ----------- TOTAL MULTI-UTILITIES 287,145 ----------- MULTILINE RETAIL 0.9% Fred's, Inc. -- Class A......................... 15,075 217,683 ----------- TOTAL MULTILINE RETAIL 217,683 ----------- PAPER & FOREST PRODUCTS 3.0% Buckeye Technologies, Inc.*..................... 5,704 72,270 Neenah Paper, Inc. ............................. 1,963 74,986 Pope & Talbot, Inc.*............................ 43,372 322,254 Schweitzer-Mauduit International, Inc. ......... 6,231 171,041 Wausau Paper Corp. ............................. 6,067 81,662 ----------- TOTAL PAPER & FOREST PRODUCTS 722,213 ----------- PHARMACEUTICALS 0.4% Alpharma, Inc. -- Class A....................... 3,750 91,125 ----------- TOTAL PHARMACEUTICALS 91,125 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 4.4% Colonial Properties Trust....................... 2,380 118,072 Entertainment Properties Trust.................. 1,168 70,570 Inland Real Estate Corp. ....................... 3,846 69,959 Kite Realty Group Trust......................... 3,097 61,940 Lexington Corporate Properties Trust............ 5,411 113,036 LTC Properties, Inc. ........................... 4,172 104,592 Medical Properties Trust, Inc. ................. 2,826 40,242 Mid-America Apartment Communities, Inc. ........ 795 42,890 National Retail Properties, Inc. ............... 5,483 131,318 Parkway Properties, Inc. ....................... 2,405 127,465 Senior Housing Properties Trust................. 4,702 107,347 Sovran Self Storage, Inc. ...................... 1,250 69,075 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,056,506 ----------- ROAD & RAIL 0.6% Arkansas Best Corp. ............................ 3,477 136,994 ----------- TOTAL ROAD & RAIL 136,994 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.3% Photronics, Inc.*............................... 4,008 $60,320 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 60,320 ----------- SPECIALTY RETAIL 5.2% Cost Plus, Inc.*................................ 20,200 196,950 Group 1 Automotive, Inc. ....................... 2,881 118,121 Haverty Furniture Cos., Inc. ................... 14,162 180,707 Jo-Ann Stores, Inc.*............................ 6,578 197,011 PEP Boys-Manny Moe & Jack....................... 12,772 238,198 Sonic Automotive, Inc. -- Class A............... 7,456 213,167 Stein Mart, Inc. ............................... 6,205 101,142 ----------- TOTAL SPECIALTY RETAIL 1,245,296 ----------- TEXTILES, APPAREL & LUXURY GOODS 1.3% Ashworth, Inc.*................................. 22,894 189,791 Kellwood Co. ................................... 3,929 110,719 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 300,510 ----------- THRIFTS & MORTGAGE FINANCE 2.7% Bank Mutual Corp. .............................. 4,137 48,775 Brookline Bancorp, Inc. ........................ 8,778 104,634 Dime Community Bancshares....................... 7,892 105,042 Flagstar Bancorp, Inc. ......................... 16,728 197,390 Fremont General Corp. .......................... 10,283 77,637 MAF Bancorp, Inc. .............................. 1,646 66,087 TrustCo Bank Corp. NY........................... 5,492 50,362 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 649,927 ----------- TOBACCO 0.6% Alliance One International, Inc.*............... 13,775 135,133 ----------- TOTAL TOBACCO 135,133 ----------- TRADING COMPANIES & DISTRIBUTORS 0.6% Kaman Corp. .................................... 5,334 132,283 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 132,283 ----------- TOTAL COMMON STOCKS (Cost $22,733,245) 23,687,603 ----------- SHORT TERM INVESTMENTS 0.4% SSgA Prime Money Market Fund.................... 104,603 104,603 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $104,603) 104,603 ----------- TOTAL INVESTMENTS 99.9% (Cost $22,837,848) 23,792,206 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 17,956 ----------- NET ASSETS--100.0% $23,810,162 -------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 46 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.9% AEROSPACE & DEFENSE 2.3% Armor Holdings, Inc.*........................... 1,069 $76,434 Ceradyne, Inc.*................................. 1,558 91,688 Curtiss-Wright Corp. ........................... 1,824 78,596 ----------- TOTAL AEROSPACE & DEFENSE 246,718 ----------- AIR FREIGHT & LOGISTICS 0.5% Forward Air Corp. .............................. 1,596 48,694 ----------- TOTAL AIR FREIGHT & LOGISTICS 48,694 ----------- AUTO COMPONENTS 0.6% Drew Industries, Inc.*.......................... 2,117 60,906 ----------- TOTAL AUTO COMPONENTS 60,906 ----------- AUTOMOBILES 0.7% Winnebago Industries............................ 2,266 72,648 ----------- TOTAL AUTOMOBILES 72,648 ----------- BIOTECHNOLOGY 0.4% Digene Corp.*................................... 864 39,614 ----------- TOTAL BIOTECHNOLOGY 39,614 ----------- BUILDING PRODUCTS 0.6% Simpson Manufacturing Co., Inc. ................ 1,909 61,413 ----------- TOTAL BUILDING PRODUCTS 61,413 ----------- CAPITAL MARKETS 0.3% Investment Technology Group, Inc.*.............. 886 33,526 ----------- TOTAL CAPITAL MARKETS 33,526 ----------- COMMERCIAL BANKS 2.7% Cascade Bancorp................................. 1,616 34,647 East West Bancorp, Inc. ........................ 1,065 42,451 Nara Bancorp, Inc. ............................. 3,109 51,330 PrivateBancorp, Inc. ........................... 1,331 43,697 UCBH Holdings, Inc. ............................ 2,967 53,287 Wilshire Bancorp, Inc. ......................... 4,346 59,801 ----------- TOTAL COMMERCIAL BANKS 285,213 ----------- COMMERCIAL SERVICES & SUPPLIES 1.0% Mobile Mini, Inc.*.............................. 1,378 41,299 Waste Connections, Inc.*........................ 2,152 67,078 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 108,377 ----------- COMMUNICATIONS EQUIPMENT 1.6% Comtech Telecommunications Corp.*............... 1,584 59,954 NETGEAR, Inc.*.................................. 3,323 111,686 ----------- TOTAL COMMUNICATIONS EQUIPMENT 171,640 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMPUTERS & PERIPHERALS 2.3% Komag, Inc.*.................................... 2,950 $81,155 Neoware, Inc.*.................................. 8,450 100,048 Synaptics, Inc.*................................ 1,988 59,560 ----------- TOTAL COMPUTERS & PERIPHERALS 240,763 ----------- CONSTRUCTION MATERIALS 1.0% Headwaters, Inc.*............................... 4,690 101,632 ----------- TOTAL CONSTRUCTION MATERIALS 101,632 ----------- CONSUMER FINANCE 1.1% Rewards Network, Inc.*.......................... 15,395 60,964 World Acceptance Corp.*......................... 1,410 60,532 ----------- TOTAL CONSUMER FINANCE 121,496 ----------- DISTRIBUTORS 0.6% LKQ Corp.*...................................... 2,618 59,114 ----------- TOTAL DISTRIBUTORS 59,114 ----------- DIVERSIFIED CONSUMER SERVICES 4.0% Bright Horizons Family Solutions, Inc.*......... 1,424 54,995 Coinstar, Inc.*................................. 3,595 111,769 Pre-Paid Legal Services, Inc.*.................. 2,065 117,808 Vertrue, Inc.*.................................. 2,966 140,351 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 424,923 ----------- DIVERSIFIED FINANCIAL SERVICES 1.1% Portfolio Recovery Associates, Inc.*............ 2,159 120,148 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 120,148 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.5% General Communication, Inc. -- Class A*......... 4,032 57,375 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 57,375 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 3.9% Daktronics, Inc. ............................... 1,453 33,099 Flir Systems, Inc.*............................. 3,460 140,095 Itron, Inc.*.................................... 1,440 96,970 Scansource, Inc.*............................... 2,329 66,889 Trimble Navigation Ltd.*........................ 2,529 72,532 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 409,585 ----------- ENERGY EQUIPMENT & SERVICES 4.4% CARBO Ceramics, Inc. ........................... 1,560 67,782 Hornbeck Offshore Services, Inc.*............... 2,384 75,406 Hydril*......................................... 1,133 109,697 Oceaneering International, Inc.*................ 989 47,017 Unit Corp.*..................................... 1,476 84,353 W-H Energy Services, Inc.*...................... 1,480 80,083 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 464,338 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 47 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) FOOD & STAPLES RETAILING 0.4% United Natural Foods, Inc.*..................... 1,502 $46,847 ----------- TOTAL FOOD & STAPLES RETAILING 46,847 ----------- FOOD PRODUCTS 0.9% Sanderson Farms, Inc. .......................... 2,497 98,706 ----------- TOTAL FOOD PRODUCTS 98,706 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 12.4% American Medical Systems Holdings, Inc.*........ 3,156 55,956 Arthrocare Corp.*............................... 1,144 47,201 Biolase Technology, Inc.*....................... 6,751 43,882 Biosite, Inc.*.................................. 2,085 192,863 Cooper Cos., Inc. (The)......................... 1,397 71,387 Greatbatch, Inc.*............................... 2,229 64,708 Hologic, Inc.*.................................. 1,240 71,362 ICU Medical, Inc.*.............................. 983 41,040 Idexx Laboratories, Inc.*....................... 626 56,446 Immucor, Inc.*.................................. 2,558 83,468 Integra LifeSciences Holdings Corp.*............ 2,534 115,474 Kensey Nash Corp.*.............................. 2,037 52,392 Mentor Corp. ................................... 1,307 50,855 Merit Medical Systems, Inc.*.................... 3,633 41,888 PolyMedica Corp. ............................... 1,619 65,472 Possis Medical, Inc.*........................... 9,008 116,564 Respironics, Inc.*.............................. 1,419 57,838 SurModics, Inc.*................................ 2,120 86,136 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,314,932 ----------- HEALTH CARE PROVIDERS & SERVICES 6.6% Amedisys, Inc.*................................. 1,900 59,565 AMN Healthcare Services, Inc.*.................. 4,085 99,470 Amsurg Corp.*................................... 2,767 63,503 HealthExtras, Inc.*............................. 3,058 94,645 Healthways, Inc.*............................... 1,992 84,501 Odyssey HealthCare, Inc.*....................... 4,529 60,417 Pediatrix Medical Group, Inc.*.................. 1,077 61,443 Sierra Health Services, Inc.*................... 2,192 90,792 Sunrise Senior Living, Inc.*.................... 2,329 89,177 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 703,513 ----------- HOTELS, RESTAURANTS & LEISURE 6.3% CEC Entertainment, Inc.*........................ 1,526 63,588 Jack in the Box, Inc.*.......................... 783 52,164 Monarch Casino & Resort, Inc.*.................. 2,629 70,116 Multimedia Games, Inc.*......................... 9,585 107,352 P.F. Chang's China Bistro, Inc.*................ 2,273 86,942 Panera Bread Co. -- Class A*.................... 1,656 92,223 Papa John's International, Inc.*................ 2,202 67,623 Shuffle Master, Inc.*........................... 3,694 62,909 Sonic Corp.*.................................... 3,012 67,589 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 670,506 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ HOUSEHOLD DURABLES 0.7% Meritage Homes Corp.*........................... 2,092 $72,823 ----------- TOTAL HOUSEHOLD DURABLES 72,823 ----------- INSURANCE 2.1% Hilb Rogal & Hobbs Co. ......................... 1,426 61,960 Infinity Property & Casualty Corp. ............. 2,318 107,810 Philadelphia Consolidated Holding Co.*.......... 1,224 53,121 ----------- TOTAL INSURANCE 222,891 ----------- INTERNET & CATALOG RETAIL 0.9% PetMed Express, Inc.*........................... 8,416 92,828 ----------- TOTAL INTERNET & CATALOG RETAIL 92,828 ----------- INTERNET SOFTWARE & SERVICES 4.4% Bankrate, Inc.*................................. 2,922 117,961 j2 Global Communications, Inc.*................. 4,035 116,047 WebEx Communications, Inc.*..................... 2,164 122,785 Websense, Inc.*................................. 4,580 113,172 ----------- TOTAL INTERNET SOFTWARE & SERVICES 469,965 ----------- IT SERVICES 2.2% CACI International, Inc. -- Class A*............ 1,124 51,400 eFunds Corp.*................................... 1,673 46,677 Mantech International Corp. -- Class A*......... 1,588 48,720 Talx Corp. ..................................... 2,597 89,571 ----------- TOTAL IT SERVICES 236,368 ----------- LEISURE EQUIPMENT & PRODUCTS 1.7% Nautilus, Inc. ................................. 6,079 83,951 Pool Corp. ..................................... 2,298 92,219 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 176,170 ----------- LIFE SCIENCES TOOLS & SERVICES 1.5% Dionex Corp.*................................... 1,075 74,175 PharmaNet Development Group, Inc.*.............. 3,095 84,463 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 158,638 ----------- MACHINERY 1.5% ASV, Inc.*...................................... 3,815 57,912 Manitowoc Co., Inc. ............................ 572 39,028 Toro Co. ....................................... 1,161 58,340 ----------- TOTAL MACHINERY 155,280 ----------- MARINE 0.3% Kirby Corp.*.................................... 974 36,817 ----------- TOTAL MARINE 36,817 ----------- METALS & MINING 1.7% Chaparral Steel Co. ............................ 1,370 96,585 Cleveland-Cliffs, Inc. ......................... 1,148 79,545 ----------- TOTAL METALS & MINING 176,130 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 48 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) OIL, GAS & CONSUMABLE FUELS 4.7% Cabot Oil & Gas Corp. .......................... 1,528 $55,650 Helix Energy Solutions Group, Inc.*............. 1,778 68,026 Penn Virginia Corp. ............................ 813 65,081 Petroleum Development Corp.*.................... 1,718 89,336 St Mary Land & Exploration Co. ................. 2,496 91,403 Stone Energy Corp.*............................. 2,437 72,208 Swift Energy Co.*............................... 1,347 54,756 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 496,460 ----------- PERSONAL PRODUCTS 1.9% NBTY, Inc.*..................................... 1,886 93,187 Playtex Products, Inc.*......................... 1,968 29,953 USANA Health Sciences, Inc.*.................... 1,849 73,664 ----------- TOTAL PERSONAL PRODUCTS 196,804 ----------- PHARMACEUTICALS 1.5% Bradley Pharmaceuticals, Inc.*.................. 4,054 79,580 Noven Pharmaceuticals, Inc.*.................... 1,139 26,664 Sciele Pharma, Inc.*............................ 2,127 52,579 ----------- TOTAL PHARMACEUTICALS 158,823 ----------- ROAD & RAIL 2.0% Heartland Express, Inc. ........................ 3,545 61,080 Knight Transportation, Inc. .................... 3,464 67,444 Landstar System, Inc. .......................... 1,708 82,514 ----------- TOTAL ROAD & RAIL 211,038 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.9% Cabot Microelectronics Corp.*................... 1,550 49,817 Diodes, Inc.*................................... 1,102 40,686 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 90,503 ----------- SOFTWARE 5.9% Ansys, Inc.*.................................... 1,432 73,318 Blackbaud, Inc. ................................ 3,123 68,956 EPIQ Systems, Inc.*............................. 4,278 101,089 Factset Research Systems, Inc. ................. 1,460 89,805 Kronos, Inc.*................................... 1,443 78,745 Manhattan Associates, Inc.*..................... 1,533 44,334 MICROS Systems, Inc.*........................... 699 38,305 Quality Systems, Inc. .......................... 1,628 65,885 Take-Two Interactive Software, Inc.*............ 3,389 64,967 ----------- TOTAL SOFTWARE 625,404 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ SPECIALTY RETAIL 6.5% Childrens Place Retail Stores Inc. (The)*....... 729 $38,542 Christopher & Banks Corp. ...................... 4,744 82,119 Dress Barn, Inc.*............................... 1,766 35,161 Guitar Center, Inc.*............................ 1,220 56,486 Gymboree Corp.*................................. 1,155 44,098 Hibbett Sports, Inc.*........................... 2,065 60,195 HOT Topic, Inc.*................................ 6,534 73,769 Jos. A. Bank Clothiers, Inc.*................... 2,054 79,367 Stage Stores, Inc. ............................. 4,261 93,955 Tractor Supply Co.*............................. 1,680 86,923 Tween Brands, Inc.*............................. 853 33,403 ----------- TOTAL SPECIALTY RETAIL 684,018 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.8% Crocs, Inc.*.................................... 615 34,366 Deckers Outdoor Corp.*.......................... 755 57,176 Fossil, Inc.*................................... 2,768 77,975 K-Swiss, Inc. -- Class A........................ 2,863 82,684 Quiksilver, Inc.*............................... 3,558 47,321 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 299,522 ----------- THRIFTS & MORTGAGE FINANCE 0.5% Franklin Bank Corp.*............................ 3,290 51,324 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 51,324 ----------- TOTAL COMMON STOCKS (Cost $9,953,346) 10,574,433 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 6,511 6,511 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $6,511) 6,511 ----------- TOTAL INVESTMENTS 100.0% (Cost $9,959,857) 10,580,944 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,532) ----------- NET ASSETS--100.0% $10,578,412 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 49 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.9% AUTO COMPONENTS 2.4% Goodyear Tire & Rubber Co.*..................... 21,338 $709,702 Johnson Controls, Inc. ......................... 6,357 650,512 ----------- TOTAL AUTO COMPONENTS 1,360,214 ----------- AUTOMOBILES 3.4% Ford Motor Co. ................................. 79,694 640,740 General Motors Corp. ........................... 20,560 642,089 Harley-Davidson, Inc. .......................... 9,914 627,754 ----------- TOTAL AUTOMOBILES 1,910,583 ----------- DISTRIBUTORS 1.1% Genuine Parts Co. .............................. 12,439 614,611 ----------- TOTAL DISTRIBUTORS 614,611 ----------- DIVERSIFIED CONSUMER SERVICES 2.3% Apollo Group, Inc. -- Class A*.................. 13,356 631,739 H&R Block, Inc. ................................ 28,900 653,429 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 1,285,168 ----------- HOTELS, RESTAURANTS & LEISURE 13.5% Carnival Corp. ................................. 13,175 644,126 Darden Restaurants, Inc. ....................... 15,245 632,362 Harrah's Entertainment, Inc. ................... 7,219 615,781 Hilton Hotels Corp. ............................ 18,168 617,712 International Game Technology, Inc. ............ 15,441 588,920 Marriott International, Inc. -- Class A......... 12,694 573,896 McDonald's Corp. ............................... 13,873 669,788 Starbucks Corp.*................................ 19,553 606,534 Starwood Hotels & Resorts Worldwide, Inc. ...... 9,545 639,706 Wendy's International, Inc. .................... 19,470 734,019 Wyndham Worldwide Corp.*........................ 18,313 633,630 Yum! Brands, Inc. .............................. 10,388 642,601 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 7,599,075 ----------- HOUSEHOLD DURABLES 14.7% Black & Decker Corp. ........................... 7,302 662,437 Centex Corp. ................................... 13,792 617,468 D.R. Horton, Inc. .............................. 26,217 581,493 Fortune Brands, Inc. ........................... 7,708 617,411 Harman International Industries, Inc. .......... 6,144 748,892 KB Home......................................... 13,116 578,547 Leggett & Platt, Inc. .......................... 26,140 614,813 Lennar Corp. -- Class A......................... 13,247 565,779 Newell Rubbermaid, Inc.*........................ 19,887 609,934 Pulte Homes, Inc. .............................. 22,759 612,217 Snap-On, Inc. .................................. 12,600 686,700 Stanley Works................................... 11,164 650,638 Whirlpool Corp. ................................ 7,134 756,418 ----------- TOTAL HOUSEHOLD DURABLES 8,302,747 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ INTERNET & CATALOG RETAIL 2.9% Amazon.Com, Inc.*............................... 15,976 $979,808 IAC/InterActiveCorp*............................ 16,539 630,467 ----------- TOTAL INTERNET & CATALOG RETAIL 1,610,275 ----------- LEISURE EQUIPMENT & PRODUCTS 4.5% Brunswick Corp. ................................ 19,081 625,094 Eastman Kodak Co. .............................. 26,200 652,642 Hasbro, Inc. ................................... 20,663 653,157 Mattel, Inc. ................................... 21,754 615,638 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 2,546,531 ----------- MEDIA 18.7% CBS Corp. -- Class B............................ 20,024 636,162 Clear Channel Communications, Inc. ............. 17,158 607,908 Comcast Corp. -- Class A*....................... 23,676 631,202 DIRECTV Group, Inc.*............................ 27,197 648,376 Dow Jones & Co., Inc. .......................... 17,632 640,571 E.W. Scripps Co. -- Class A..................... 13,883 601,134 Gannett Co., Inc. .............................. 10,625 606,263 Interpublic Group of Cos., Inc.*................ 47,985 608,450 McGraw-Hill Cos., Inc. ......................... 9,607 629,547 Meredith Corp. ................................. 10,561 611,693 New York Times Co. -- Class A................... 24,933 583,432 News Corp. -- Class A........................... 26,935 603,075 Omnicom Group, Inc. ............................ 5,803 607,632 Time Warner, Inc. .............................. 30,971 638,932 Tribune Co. .................................... 20,800 682,240 Viacom, Inc. -- Class B*........................ 15,033 620,111 Walt Disney Co. ................................ 17,942 627,611 ----------- TOTAL MEDIA 10,584,339 ----------- MULTILINE RETAIL 11.1% Big Lots, Inc.*................................. 19,617 631,667 Dillard's, Inc. -- Class A...................... 18,756 649,520 Dollar General Corp. ........................... 28,655 611,784 Family Dollar Stores, Inc. ..................... 20,844 663,673 Federated Department Stores, Inc. .............. 13,626 598,454 J.C. Penney Holding Co., Inc. .................. 7,597 600,847 Kohl's Corp.*................................... 8,352 618,382 Nordstrom, Inc. ................................ 11,849 650,747 Sears Holdings Corp.*........................... 3,460 660,549 Target Corp. ................................... 10,083 598,628 ----------- TOTAL MULTILINE RETAIL 6,284,251 ----------- SPECIALTY RETAIL 18.6% Abercrombie & Fitch Co. -- Class A.............. 7,939 648,299 AutoNation, Inc.*............................... 28,659 585,790 AutoZone, Inc.*................................. 4,838 643,648 Bed Bath & Beyond, Inc.*........................ 15,452 629,515 Best Buy Co., Inc. ............................. 12,538 584,898 Circuit City Stores, Inc. ...................... 33,909 591,712 Gap, Inc. ...................................... 34,476 618,844 Home Depot, Inc. ............................... 16,058 608,116 Limited Brands, Inc. ........................... 23,490 647,619 Lowe's Cos., Inc. .............................. 19,456 594,575
See Notes to Financial Statements. SEMI-ANNUAL REPORT 50 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Office Depot, Inc.*............................. 17,453 $586,770 OfficeMax, Inc. ................................ 12,223 601,616 RadioShack Corp. ............................... 23,200 674,424 Sherwin-Williams Co. ........................... 9,169 584,707 Staples, Inc. .................................. 23,729 588,479 Tiffany & Co. .................................. 14,075 671,237 TJX Cos., Inc. ................................. 23,043 642,669 ----------- TOTAL SPECIALTY RETAIL 10,502,918 ----------- TEXTILES, APPAREL & LUXURY GOODS 6.7% Coach, Inc.*.................................... 12,362 603,637 Jones Apparel Group, Inc. ...................... 18,887 630,637 Liz Claiborne, Inc. ............................ 14,099 630,507 Nike, Inc. -- Class B........................... 11,278 607,433 Polo Ralph Lauren Corp. ........................ 7,193 662,547 V.F. Corp. ..................................... 7,458 654,887 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 3,789,648 ----------- TOTAL COMMON STOCKS (Cost $54,859,226) 56,390,360 -----------
MARKET SHARES VALUE ------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 71,510 $71,510 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $71,510) 71,510 ----------- TOTAL INVESTMENTS 100.0% (Cost $54,930,736) 56,461,870 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,326) ----------- NET ASSETS--100.0% $56,459,544 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 51 RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.9% BEVERAGES 20.7% Anheuser-Busch Cos., Inc. ...................... 3,853 $189,529 Brown-Forman Corp. -- Class B................... 2,959 189,169 Coca-Cola Co. (The)............................. 4,052 211,474 Coca-Cola Enterprises, Inc. .................... 9,454 207,421 Constellation Brands, Inc. -- Class A*.......... 9,925 222,419 Molson Coors Brewing Co. -- Class B............. 2,152 202,890 Pepsi Bottling Group, Inc. ..................... 6,233 204,505 PepsiCo, Inc. .................................. 3,055 201,905 ---------- TOTAL BEVERAGES 1,629,312 ---------- FOOD & STAPLES RETAILING 23.2% Costco Wholesale Corp. ......................... 3,610 193,388 CVS Corp. ...................................... 5,807 210,446 Kroger Co. ..................................... 7,191 212,206 Safeway, Inc. .................................. 5,543 201,211 SUPERVALU, Inc. ................................ 5,087 233,492 Sysco Corp. .................................... 5,894 192,970 Wal-Mart Stores, Inc. .......................... 4,139 198,341 Walgreen Co. ................................... 4,136 181,570 Whole Foods Market, Inc. ....................... 4,325 202,367 ---------- TOTAL FOOD & STAPLES RETAILING 1,825,991 ---------- FOOD PRODUCTS 32.8% Archer-Daniels-Midland Co. ..................... 5,708 220,900 Campbell Soup Co. .............................. 4,913 192,098 ConAgra Foods, Inc. ............................ 7,854 193,051 Dean Foods Co. ................................. 4,142 150,893 General Mills, Inc. ............................ 3,409 204,199 H.J. Heinz Co. ................................. 4,154 195,695 Hershey Co. (The)............................... 3,577 196,592 Kellogg Co. .................................... 3,784 200,212 Kraft Foods, Inc. -- Class A.................... 6,068 203,096 McCormick & Co, Inc. ........................... 5,081 188,607 Sara Lee Corp. ................................. 11,515 188,961
MARKET SHARES VALUE ----------------------------------------------------------------------- Tyson Foods, Inc. -- Class A.................... 10,492 $219,912 Wm. Wrigley Jr. Co. ............................ 3,724 219,269 ---------- TOTAL FOOD PRODUCTS 2,573,485 ---------- HOUSEHOLD PRODUCTS 10.3% Clorox Co. ..................................... 3,073 206,137 Colgate-Palmolive Co. .......................... 2,938 199,020 Kimberly-Clark Corp. ........................... 2,866 203,973 Procter & Gamble Co. ........................... 3,103 199,554 ---------- TOTAL HOUSEHOLD PRODUCTS 808,684 ---------- PERSONAL PRODUCTS 5.2% Avon Products, Inc. ............................ 5,093 202,702 Estee Lauder Cos., Inc -- Class A............... 3,998 205,577 ---------- TOTAL PERSONAL PRODUCTS 408,279 ---------- TOBACCO 7.7% Altria Group, Inc. ............................. 3,010 207,449 Reynolds American, Inc. ........................ 3,196 205,375 UST, Inc. ...................................... 3,400 192,713 ---------- TOTAL TOBACCO 605,537 ---------- TOTAL COMMON STOCKS (Cost $7,331,767) 7,851,288 ---------- SHORT TERM INVESTMENTS 0.0%(A) SSgA Prime Money Market Fund.................... 2,063 2,063 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $2,063) 2,063 ---------- TOTAL INVESTMENTS 99.9% (Cost $7,333,830) 7,853,351 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 9,490 ---------- NET ASSETS--100.0% $7,862,841 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 52 RYDEX S&P EQUAL WEIGHT ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.9% ENERGY EQUIPMENT & SERVICES 36.9% Baker Hughes, Inc. ............................. 3,565 $286,590 BJ Services Co. ................................ 8,356 239,483 ENSCO International, Inc. ...................... 4,437 250,158 Halliburton Co. ................................ 7,088 225,186 Nabors Industries Ltd.*......................... 7,696 247,196 National-Oilwell Varco, Inc.*................... 3,104 263,374 Noble Corp. .................................... 3,047 256,588 Rowan Cos., Inc. ............................... 7,377 270,293 Schlumberger Ltd. .............................. 3,517 259,660 Smith International, Inc. ...................... 5,143 269,699 Transocean, Inc.*............................... 2,969 255,928 Weatherford International Ltd.*................. 5,112 268,329 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 3,092,484 ---------- OIL, GAS & CONSUMABLE FUELS 63.0% Anadarko Petroleum Corp. ....................... 5,691 265,542 Apache Corp. ................................... 3,344 242,440 Chesapeake Energy Corp. ........................ 7,625 257,344 Chevron Corp. .................................. 3,290 255,929 ConocoPhillips.................................. 3,435 238,217 CONSOL Energy, Inc. ............................ 6,202 259,678 Devon Energy Corp. ............................. 3,507 255,555 El Paso Corp. .................................. 16,184 242,760 EOG Resources, Inc. ............................ 3,420 251,165 Exxon Mobil Corp. .............................. 3,232 256,556
MARKET SHARES VALUE ----------------------------------------------------------------------- Hess Corp.*..................................... 4,409 $250,211 Kinder Morgan, Inc. ............................ 2,155 229,637 Marathon Oil Corp. ............................. 2,428 246,563 Murphy Oil Corp. ............................... 4,379 242,772 Occidental Petroleum Corp. ..................... 4,971 252,030 Peabody Energy Corp. ........................... 5,868 281,547 Spectra Energy Corp. ........................... 9,493 247,767 Sunoco, Inc. ................................... 3,429 258,992 Valero Energy Corp. ............................ 3,764 264,346 Williams Cos., Inc. ............................ 8,449 249,245 XTO Energy, Inc. ............................... 4,453 241,664 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 5,289,960 ---------- TOTAL COMMON STOCKS (Cost $7,290,590) 8,382,444 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 10,935 10,935 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $10,935) 10,935 ---------- TOTAL INVESTMENTS 100.0% (Cost $7,301,525) 8,393,379 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (598) ---------- NET ASSETS--100.0% $8,392,781 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.6% CAPITAL MARKETS 19.5% Ameriprise Financial, Inc. ..................... 985 $58,578 Bank of New York Co., Inc....................... 1,409 57,036 Bear Stearns Cos., Inc. ........................ 377 58,699 Charles Schwab Corp. ........................... 3,048 58,278 E*Trade Financial Corp.*........................ 2,528 55,818 Federated Investors, Inc. -- Class B............ 1,523 58,118 Franklin Resources, Inc. ....................... 478 62,766 Goldman Sachs Group, Inc. ...................... 276 60,336 Janus Capital Group, Inc. ...................... 2,716 67,954 Legg Mason, Inc. ............................... 580 57,530 Lehman Brothers Holdings, Inc. ................. 767 57,740 Mellon Financial Corp. ......................... 1,323 56,797 Merrill Lynch & Co., Inc. ...................... 685 61,808 Morgan Stanley.................................. 734 61,663 Northern Trust Corp. ........................... 945 59,488 State Street Corp. ............................. 867 59,710 T. Rowe Price Group, Inc. ...................... 1,187 58,970 ---------- TOTAL CAPITAL MARKETS 1,011,289 ---------- COMMERCIAL BANKS 20.2% BB&T Corp. ..................................... 1,345 55,979 Comerica, Inc. ................................. 933 57,762 Commerce Bancorp, Inc. ......................... 1,659 55,477 Compass Bancshares, Inc. ....................... 815 55,567 Fifth Third Bancorp............................. 1,390 56,420 First Horizon National Corp. ................... 1,334 52,306 Huntington Bancshares, Inc. .................... 2,469 54,762 KeyCorp......................................... 1,485 52,985 M&T Bank Corp. ................................. 472 52,552 Marshall & Ilsley Corp. ........................ 1,179 56,616 National City Corp. ............................ 1,518 55,483 PNC Financial Services Group, Inc. ............. 781 57,872 Regions Financial Corp. ........................ 1,582 55,512 SunTrust Banks, Inc. ........................... 655 55,295 Synovus Financial Corp. ........................ 1,703 53,747 U.S. Bancorp.................................... 1,553 53,346 Wachovia Corp. ................................. 995 55,262 Wells Fargo & Co. .............................. 1,608 57,711 Zions Bancorp................................... 647 52,925 ---------- TOTAL COMMERCIAL BANKS 1,047,579 ---------- CONSUMER FINANCE 3.6% American Express Co. ........................... 989 60,002 Capital One Financial Corp. .................... 730 54,210 SLM Corp. ...................................... 1,312 70,625 ---------- TOTAL CONSUMER FINANCE 184,837 ---------- DIVERSIFIED FINANCIAL SERVICES 6.7% Bank of America Corp. .......................... 1,096 55,787 Chicago Mercantile Exchange Holdings, Inc. ..... 103 53,225 CIT Group, Inc. ................................ 1,062 63,348 Citigroup, Inc. ................................ 1,102 59,089
MARKET SHARES VALUE ----------------------------------------------------------------------- JPMorgan Chase & Co. ........................... 1,157 $60,280 Moody's Corp. .................................. 849 56,136 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 347,865 ---------- INSURANCE 27.2% ACE Ltd. ....................................... 999 59,401 AFLAC, Inc. .................................... 1,198 61,505 Allstate Corp................................... 916 57,085 Ambac Financial Group, Inc. .................... 635 58,293 American International Group, Inc. ............. 819 57,256 Aon Corp. ...................................... 1,451 56,226 Assurant, Inc. ................................. 978 56,264 Chubb Corp. .................................... 1,103 59,374 Cincinnati Financial Corp. ..................... 1,286 58,179 Genworth Financial, Inc. -- Class A............. 1,599 58,348 Hartford Financial Services Group, Inc. ........ 582 58,898 Lincoln National Corp. ......................... 831 59,126 Loews Corp. .................................... 1,254 59,339 Marsh & McLennan Cos., Inc. .................... 1,896 60,217 MBIA, Inc. ..................................... 845 58,778 MetLife, Inc. .................................. 887 58,276 Principal Financial Group, Inc. ................ 927 58,855 Progressive Corp. .............................. 2,595 59,867 Prudential Financial, Inc. ..................... 617 58,615 SAFECO Corp. ................................... 824 54,994 Torchmark Corp. ................................ 865 59,080 Travelers Cos., Inc. (The)...................... 1,091 59,023 UnumProvident Corp. ............................ 2,475 61,578 XL Capital Ltd. -- Class A...................... 801 62,462 ---------- TOTAL INSURANCE 1,411,039 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) 13.7% Apartment Investment & Management Co. -- Class A............................................. 991 54,802 Archstone-Smith Trust........................... 1,016 52,944 AvalonBay Communities, Inc. .................... 424 51,838 Boston Properties, Inc. ........................ 468 55,018 Developers Diversified Realty Corp. ............ 870 56,637 Equity Residential Properties Trust............. 1,151 53,441 Host Hotels & Resorts, Inc. .................... 2,068 53,024 Kimco Realty Corp. ............................. 1,129 54,271 Plum Creek Timber Co., Inc. .................... 1,440 57,168 ProLogis........................................ 835 54,108 Public Storage, Inc. ........................... 570 53,192 Simon Property Group, Inc. ..................... 498 57,410 Vornado Realty Trust............................ 452 53,621 ---------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 707,474 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT 1.0% CB Richard Ellis Group, Inc. -- Class A*........ 1,608 54,431 ---------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 54,431 ---------- THRIFTS & MORTGAGE FINANCE 7.7% Countrywide Financial Corp. .................... 1,552 57,548 Federal Home Loan Mortgage Corp. ............... 913 59,144 Federal National Mortgage Association........... 1,011 59,568
See Notes to Financial Statements. SEMI-ANNUAL REPORT 54 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Hudson City Bancorp, Inc. ...................... 4,066 $54,159 MGIC Investment Corp. .......................... 939 57,852 Sovereign Bancorp, Inc. ........................ 2,145 52,059 Washington Mutual, Inc. ........................ 1,364 57,261 ---------- TOTAL THRIFTS & MORTGAGE FINANCE 397,591 ---------- TOTAL COMMON STOCKS (Cost $4,986,986) 5,162,105 ---------- SHORT TERM INVESTMENTS 0.3% SSgA Prime Money Market Fund.................... 16,865 16,865 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $16,865) 16,865 ---------- TOTAL INVESTMENTS 99.9% (Cost $5,003,851) 5,178,970 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 3,201 ---------- NET ASSETS--100.0% $5,182,171 -----------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 55 RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.9% BIOTECHNOLOGY 12.4% Amgen, Inc.*.................................... 2,427 $155,668 Biogen Idec, Inc.*.............................. 3,302 155,888 Celgene Corp.*.................................. 2,765 169,108 Genzyme Corp.*.................................. 2,427 158,507 Gilead Sciences, Inc.*.......................... 2,067 168,915 MedImmune, Inc.*................................ 4,424 250,752 ---------- TOTAL BIOTECHNOLOGY 1,058,838 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 21.4% Bausch & Lomb, Inc. ............................ 2,906 170,960 Baxter International, Inc. ..................... 2,802 158,677 Becton Dickinson & Co. ......................... 1,933 152,108 Biomet, Inc. ................................... 3,406 147,139 Boston Scientific Corp.*........................ 9,698 149,737 C.R. Bard, Inc. ................................ 1,814 150,798 Hospira, Inc.*.................................. 3,680 149,224 Medtronic, Inc. ................................ 2,942 155,720 St Jude Medical, Inc.*.......................... 3,826 163,715 Stryker Corp. .................................. 2,204 143,128 Varian Medical Systems, Inc.*................... 3,040 128,318 Zimmer Holdings, Inc.*.......................... 1,683 152,278 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,821,802 ---------- HEALTH CARE PROVIDERS & SERVICES 29.1% Aetna, Inc. .................................... 3,329 156,064 AmerisourceBergen Corp. ........................ 2,774 138,672 Cardinal Health, Inc. .......................... 2,031 142,069 Cigna Corp. .................................... 1,009 156,990 Coventry Health Care, Inc.*..................... 2,619 151,457 Express Scripts, Inc.*.......................... 1,744 166,639 Humana, Inc.*................................... 2,470 156,203 Laboratory Corp. of America Holdings*........... 2,031 160,327 Manor Care, Inc. ............................... 2,674 173,516 McKesson Corp. ................................. 2,604 153,193 Medco Health Solutions, Inc.*................... 2,113 164,856 Patterson Cos., Inc.*........................... 4,335 156,320 Quest Diagnostics, Inc. ........................ 2,936 143,541 Tenet Healthcare Corp.*......................... 22,653 168,085 UnitedHealth Group, Inc. ....................... 2,707 143,634 WellPoint, Inc.*................................ 1,826 144,199 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 2,475,765 ----------
MARKET SHARES VALUE ----------------------------------------------------------------------- HEALTH CARE TECHNOLOGY 1.8% IMS Health, Inc. ............................... 5,043 $147,911 ---------- TOTAL HEALTH CARE TECHNOLOGY 147,911 ---------- LIFE SCIENCES TOOLS & SERVICES 9.0% Applera Corp. -- Applied Biosystems Group....... 4,869 152,108 Millipore Corp.*................................ 2,015 148,767 PerkinElmer, Inc. .............................. 6,186 149,701 Thermo Electron Corp.*.......................... 3,168 164,926 Waters Corp.*................................... 2,564 152,379 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 767,881 ---------- PHARMACEUTICALS 26.2% Abbott Laboratories............................. 2,720 154,006 Allergan, Inc. ................................. 1,299 157,439 Barr Pharmaceuticals, Inc.*..................... 2,979 144,064 Bristol-Myers Squibb Co. ....................... 5,363 154,776 Eli Lilly & Co. ................................ 2,756 162,962 Forest Laboratories, Inc.*...................... 2,845 151,382 Johnson & Johnson............................... 2,378 152,715 King Pharmaceuticals, Inc.*..................... 7,628 155,993 Merck & Co., Inc. .............................. 3,338 171,707 Mylan Laboratories, Inc. ....................... 7,406 162,414 Pfizer, Inc. ................................... 5,756 152,304 Schering-Plough Corp. .......................... 6,125 194,346 Watson Pharmaceuticals, Inc.*................... 5,637 153,890 Wyeth........................................... 2,979 165,335 ---------- TOTAL PHARMACEUTICALS 2,233,333 ---------- TOTAL COMMON STOCKS (Cost $7,551,276) 8,505,529 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 10,339 10,339 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $10,339) 10,339 ---------- TOTAL INVESTMENTS 100.0% (Cost $7,561,615) 8,515,868 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (143) ---------- NET ASSETS--100.0% $8,515,725 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 56 RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.8% AEROSPACE & DEFENSE 18.9% Boeing Co. ..................................... 1,662 $154,566 General Dynamics Corp. ......................... 1,929 151,427 Goodrich Corp. ................................. 2,983 169,554 Honeywell International, Inc. .................. 3,190 172,834 L-3 Communications Holdings, Inc. .............. 1,785 160,525 Lockheed Martin Corp. .......................... 1,530 147,094 Northrop Grumman Corp. ......................... 2,064 151,993 Raytheon Co. ................................... 2,821 151,036 Rockwell Collins, Inc. ......................... 2,192 143,949 United Technologies Corp. ...................... 2,318 155,607 ---------- TOTAL AEROSPACE & DEFENSE 1,558,585 ---------- AIR FREIGHT & LOGISTICS 5.6% C.H. Robinson Worldwide, Inc. .................. 3,154 168,613 FedEx Corp. .................................... 1,348 142,133 United Parcel Service, Inc. -- Class B.......... 2,162 152,269 ---------- TOTAL AIR FREIGHT & LOGISTICS 463,015 ---------- AIRLINES 1.7% Southwest Airlines Co. ......................... 9,979 143,199 ---------- TOTAL AIRLINES 143,199 ---------- BUILDING PRODUCTS 3.7% American Standard Cos., Inc. ................... 2,812 154,829 Masco Corp. .................................... 5,439 147,995 ---------- TOTAL BUILDING PRODUCTS 302,824 ---------- COMMERCIAL SERVICES & SUPPLIES 16.6% Allied Waste Industries, Inc.*.................. 12,229 163,502 Avery Dennison Corp.*........................... 2,336 145,299 Cintas Corp. ................................... 3,774 141,412 Equifax, Inc. .................................. 4,049 161,150 Monster Worldwide, Inc.*........................ 3,127 131,490 Pitney Bowes, Inc. ............................. 3,312 158,976 R.R. Donnelley & Sons Co. ...................... 4,235 170,247 Robert Half International, Inc. ................ 4,022 133,933 Waste Management, Inc. ......................... 4,466 167,073 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,373,082 ---------- CONSTRUCTION & ENGINEERING 1.9% Fluor Corp. .................................... 1,698 162,363 ---------- TOTAL CONSTRUCTION & ENGINEERING 162,363 ---------- ELECTRICAL EQUIPMENT 5.8% Cooper Industries Ltd., -- Class A.............. 3,259 162,168 Emerson Electric Co. ........................... 3,543 166,485 Rockwell Automation, Inc.*...................... 2,492 148,374 ---------- TOTAL ELECTRICAL EQUIPMENT 477,027 ----------
MARKET SHARES VALUE ----------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES 7.9% 3M Co. ......................................... 1,989 $164,629 General Electric Co. ........................... 4,358 160,636 Textron, Inc. .................................. 1,665 169,281 Tyco International Ltd. ........................ 4,846 158,125 ---------- TOTAL INDUSTRIAL CONGLOMERATES 652,671 ---------- MACHINERY 25.8% Caterpillar, Inc. .............................. 2,369 172,037 Cummins, Inc. .................................. 2,162 199,250 Danaher Corp. .................................. 2,108 150,068 Deere & Co. .................................... 1,360 148,784 Dover Corp. .................................... 3,151 151,626 Eaton Corp. .................................... 1,815 161,916 Illinois Tool Works, Inc. ...................... 2,968 152,288 Ingersoll-Rand Co., Ltd. -- Class A............. 3,483 155,516 ITT Corp. ...................................... 2,516 160,546 PACCAR, Inc. ................................... 2,070 173,839 Pall Corp. ..................................... 3,929 164,821 Parker-Hannifin Corp. .......................... 1,815 167,234 Terex Corp.*.................................... 2,189 170,414 ---------- TOTAL MACHINERY 2,128,339 ---------- ROAD & RAIL 9.9% Burlington Northern Santa Fe Corp. ............. 1,875 164,138 CSX Corp. ...................................... 3,732 161,110 Norfolk Southern Corp. ......................... 3,070 163,447 Ryder System, Inc. ............................. 3,019 158,920 Union Pacific Corp. ............................ 1,497 171,032 ---------- TOTAL ROAD & RAIL 818,647 ---------- TRADING COMPANIES & DISTRIBUTORS 2.0% W.W. Grainger, Inc. ............................ 1,989 164,331 ---------- TOTAL TRADING COMPANIES & DISTRIBUTORS 164,331 ---------- TOTAL COMMON STOCKS (Cost $7,420,653) 8,244,083 ---------- SHORT TERM INVESTMENTS 0.2% SSgA Prime Money Market Fund.................... 12,578 12,578 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $12,578) 12,578 ---------- TOTAL INVESTMENTS 100.0% (Cost $7,433,231) 8,256,661 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,053 ---------- NET ASSETS--100.0% $8,257,714 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 57 RYDEX S&P EQUAL WEIGHT MATERIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.9% CHEMICALS 45.6% Air Products & Chemicals, Inc. ................. 2,632 $201,348 Ashland, Inc. .................................. 3,063 183,627 Dow Chemical Co. (The).......................... 4,266 190,306 Du Pont (E.I.) de Nemours & Co. ................ 3,863 189,944 Eastman Chemical Co. ........................... 3,179 215,218 Ecolab, Inc. ................................... 4,548 195,519 Hercules, Inc.*................................. 9,585 180,581 International Flavors & Fragrances, Inc. ....... 4,176 203,246 Monsanto Co. ................................... 3,743 220,800 PPG Industries, Inc. ........................... 2,796 205,730 Praxair, Inc. .................................. 3,189 205,850 Rohm & Haas Co. ................................ 3,808 194,855 Sigma-Aldrich Corp. ............................ 4,826 203,078 ---------- TOTAL CHEMICALS 2,590,102 ---------- CONSTRUCTION MATERIALS 3.7% Vulcan Materials Co. ........................... 1,677 207,394 ---------- TOTAL CONSTRUCTION MATERIALS 207,394 ---------- CONTAINERS & PACKAGING 18.0% Ball Corp. ..................................... 4,268 216,345 Bemis Co., Inc. ................................ 5,889 195,633 Pactiv Corp.*................................... 6,157 212,909 Sealed Air Corp. ............................... 6,095 200,525 Temple-Inland, Inc. ............................ 3,324 196,914 ---------- TOTAL CONTAINERS & PACKAGING 1,022,326 ---------- METALS & MINING 21.7% Alcoa, Inc. .................................... 5,765 204,600 Allegheny Technologies, Inc. ................... 1,877 205,682
MARKET SHARES VALUE ----------------------------------------------------------------------- Freeport-McMoRan Copper & Gold, Inc. -- Class B............................................. 3,179 $213,502 Newmont Mining Corp. (Holding Co.).............. 4,490 187,233 Nucor Corp. .................................... 3,131 198,693 United States Steel Corp. ...................... 2,166 219,935 ---------- TOTAL METALS & MINING 1,229,645 ---------- PAPER & FOREST PRODUCTS 10.9% International Paper Co. ........................ 5,468 206,253 MeadWestvaco Corp. ............................. 6,586 219,709 Weyerhaeuser Co. ............................... 2,443 193,534 ---------- TOTAL PAPER & FOREST PRODUCTS 619,496 ---------- TOTAL COMMON STOCKS (Cost $5,362,571) 5,668,963 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 3,765 3,765 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $3,765) 3,765 ---------- TOTAL INVESTMENTS 100.0% (Cost $5,366,336) 5,672,728 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,559 ---------- NET ASSETS--100.0% $5,674,287 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 58 RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.9% COMMUNICATIONS EQUIPMENT 13.9% ADC Telecommunications, Inc.*................... 10,163 $186,999 Avaya, Inc.*.................................... 14,230 183,852 Ciena Corp.*.................................... 6,577 191,785 Cisco Systems, Inc.*............................ 6,384 170,708 Corning, Inc.*.................................. 7,591 180,058 JDS Uniphase Corp.*............................. 10,937 180,242 Juniper Networks, Inc.*......................... 9,150 204,594 Motorola, Inc. ................................. 9,108 157,842 QUALCOMM, Inc. ................................. 3,804 166,615 Tellabs, Inc.*.................................. 16,645 176,770 ----------- TOTAL COMMUNICATIONS EQUIPMENT 1,799,465 ----------- COMPUTERS & PERIPHERALS 14.7% Apple, Inc.*.................................... 1,849 184,530 Dell, Inc.*..................................... 7,378 186,000 EMC Corp.*...................................... 12,746 193,484 Hewlett-Packard Co. ............................ 4,152 174,965 International Business Machines Corp. .......... 1,777 181,627 Lexmark International, Inc. -- Class A*......... 2,792 152,164 NCR Corp.*...................................... 3,475 175,140 Network Appliance, Inc.*........................ 4,524 168,338 QLogic Corp.*................................... 9,699 173,418 SanDisk Corp.*.................................. 4,088 177,624 Sun Microsystems, Inc.*......................... 26,597 138,836 ----------- TOTAL COMPUTERS & PERIPHERALS 1,906,126 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 7.7% Agilent Technologies, Inc.*..................... 5,222 179,480 Jabil Circuit, Inc. ............................ 6,347 147,885 Molex, Inc. .................................... 5,803 173,394 Sanmina-SCI Corp.*.............................. 44,282 152,773 Solectron Corp.*................................ 51,840 173,664 Tektronix, Inc. ................................ 5,884 172,931 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,000,127 ----------- INTERNET SOFTWARE & SERVICES 5.3% eBay, Inc.*..................................... 5,227 177,404 Google, Inc. -- Class A*........................ 375 176,767 VeriSign, Inc.*................................. 6,719 183,765 Yahoo!, Inc.*................................... 5,546 155,510 ----------- TOTAL INTERNET SOFTWARE & SERVICES 693,446 ----------- IT SERVICES 16.3% Affiliated Computer Services, Inc. -- Class A*............................................ 3,248 194,588 Automatic Data Processing, Inc. ................ 3,833 171,565 Cognizant Technology Solutions Corp. -- Class A*............................................ 1,868 166,999 Computer Sciences Corp.*........................ 3,269 181,560 Convergys Corp.*................................ 6,636 167,625 Electronic Data Systems Corp. .................. 6,032 176,376
MARKET SHARES VALUE ------------------------------------------------------------------------ Fidelity National Information Services, Inc. ... 3,793 $191,660 First Data Corp. ............................... 6,727 217,955 Fiserv, Inc.*................................... 3,262 173,441 Paychex, Inc. .................................. 4,175 154,893 Unisys Corp.*................................... 20,050 157,192 Western Union Co. (The)......................... 7,621 160,422 ----------- TOTAL IT SERVICES 2,114,276 ----------- OFFICE ELECTRONICS 1.4% Xerox Corp.*.................................... 9,855 182,318 ----------- TOTAL OFFICE ELECTRONICS 182,318 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 24.3% Advanced Micro Devices, Inc.*................... 11,801 163,090 Altera Corp.*................................... 7,968 179,599 Analog Devices, Inc. ........................... 4,688 181,051 Applied Materials, Inc. ........................ 8,962 172,250 Broadcom Corp. -- Class A*...................... 4,870 158,518 Intel Corp. .................................... 8,663 186,254 KLA-Tencor Corp. ............................... 3,187 177,038 Linear Technology Corp. ........................ 4,936 184,705 LSI Logic Corp.*................................ 16,425 139,612 Maxim Integrated Products, Inc. ................ 5,191 164,659 Micron Technology, Inc.*........................ 14,456 165,810 National Semiconductor Corp. ................... 6,619 174,080 Novellus Systems, Inc.*......................... 5,062 163,857 NVIDIA Corp.*................................... 5,850 192,406 PMC -- Sierra, Inc.*............................ 25,308 195,631 Teradyne, Inc.*................................. 9,922 173,139 Texas Instruments, Inc. ........................ 5,290 181,817 Xilinx, Inc. ................................... 6,491 191,355 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3,144,871 ----------- SOFTWARE 16.3% Adobe Systems, Inc.*............................ 4,240 176,214 Autodesk, Inc.*................................. 4,414 182,166 BMC Software, Inc.*............................. 5,353 173,277 CA, Inc. ....................................... 6,552 178,608 Citrix Systems, Inc.*........................... 5,317 173,334 Compuware Corp.*................................ 17,676 174,462 Electronic Arts, Inc.*.......................... 3,367 169,730 Intuit, Inc.*................................... 5,766 164,043 Microsoft Corp. ................................ 6,067 181,646 Novell, Inc.*................................... 23,664 172,747 Oracle Corp.*................................... 9,923 186,552 Symantec Corp.*................................. 9,825 172,920 ----------- TOTAL SOFTWARE 2,105,699 ----------- TOTAL COMMON STOCKS (Cost $12,214,329) 12,946,328 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 59 RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.0%(A) SSgA Prime Money Market Fund.................... 100 $100 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $100) 100 ----------- TOTAL INVESTMENTS 99.9% (Cost $12,214,429) 12,946,428 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 6,634 ----------- NET ASSETS--100.0% $12,953,062 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 60 RYDEX S&P EQUAL WEIGHT UTILITIES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.5% DIVERSIFIED TELECOMMUNICATION SERVICES 16.8% AT&T, Inc. ..................................... 5,799 $224,537 CenturyTel, Inc. ............................... 4,914 226,290 Citizens Communications Co. .................... 15,009 233,690 Embarq Corp. ................................... 3,996 239,920 Qwest Communications International, Inc.*....... 24,818 220,384 Verizon Communications, Inc. ................... 5,905 225,453 Windstream Corp.*............................... 14,879 217,531 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 1,587,805 ---------- ELECTRIC UTILITIES 31.9% Allegheny Energy, Inc.*......................... 4,507 240,944 American Electric Power Co., Inc. .............. 4,661 234,075 Duke Energy Corp. .............................. 10,927 224,222 Edison International............................ 4,426 231,701 Entergy Corp. .................................. 2,149 243,138 Exelon Corp. ................................... 3,257 245,610 FirstEnergy Corp. .............................. 3,401 232,765 FPL Group, Inc. ................................ 3,605 232,054 Integrys Energy Group, Inc. .................... 3,989 223,783 Pinnacle West Capital Corp. .................... 4,541 219,285 PPL Corp. ...................................... 5,673 247,400 Progress Energy, Inc. .......................... 4,336 219,185 Southern Co. ................................... 6,041 228,289 ---------- TOTAL ELECTRIC UTILITIES 3,022,451 ---------- GAS UTILITIES 5.0% Nicor, Inc. .................................... 4,548 233,039 Questar Corp. .................................. 2,499 242,728 ---------- TOTAL GAS UTILITIES 475,767 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 9.7% AES Corp.*...................................... 10,385 228,366 Constellation Energy Group, Inc. ............... 2,559 228,058 Dynegy, Inc.*................................... 25,160 236,756 TXU Corp. ...................................... 3,412 223,759 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 916,939 ----------
MARKET SHARES VALUE ----------------------------------------------------------------------- MULTI-UTILITIES 31.4% Ameren Corp. ................................... 4,357 $229,047 CenterPoint Energy, Inc. ....................... 12,271 231,063 CMS Energy Corp. ............................... 12,553 232,482 Consolidated Edison, Inc. ...................... 4,416 226,364 Dominion Resources, Inc. ....................... 2,516 229,459 DTE Energy Co. ................................. 4,611 233,270 KeySpan Corp. .................................. 5,260 217,817 NiSource, Inc. ................................. 9,019 221,777 PG&E Corp. ..................................... 4,641 234,835 Public Service Enterprise Group, Inc. .......... 2,762 238,775 Sempra Energy................................... 3,551 225,417 TECO Energy, Inc. .............................. 12,746 228,791 Xcel Energy, Inc. .............................. 9,099 219,195 ---------- TOTAL MULTI-UTILITIES 2,968,292 ---------- WIRELESS TELECOMMUNICATION SERVICES 4.7% ALLTEL Corp. ................................... 3,467 217,346 Sprint Nextel Corp. ............................ 11,259 225,518 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 442,864 ---------- TOTAL COMMON STOCKS (Cost $8,359,552) 9,414,118 ---------- SHORT TERM INVESTMENTS 0.4% SSgA Prime Money Market Fund.................... 33,929 33,929 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $33,929) 33,929 ---------- TOTAL INVESTMENTS 99.9% (Cost $8,393,481) 9,448,047 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 12,429 ---------- NET ASSETS--100.0% $9,460,476 -----------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 61 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX S&P RYDEX S&P S&P EQUAL RUSSELL TOP 500 PURE 500 PURE WEIGHT ETF 50 ETF VALUE ETF GROWTH ETF -------------- ------------ ----------- ----------- ASSETS Investments at Market Value*........................... $2,283,726,816 $538,795,422 $43,341,022 $51,478,217 Receivables: Investments Sold..................................... 105,122 -- -- 4,378 Dividends............................................ 1,431,803 489,367 53,349 16,390 Rydex In-kind Subscriptions.......................... 10,464 -- -- -- -------------- ------------ ----------- ----------- TOTAL ASSETS....................................... 2,285,274,205 539,284,789 43,394,371 51,498,985 -------------- ------------ ----------- ----------- LIABILITIES Payables: Accrued Management Fees.............................. 719,315 88,420 11,218 13,452 -------------- ------------ ----------- ----------- TOTAL LIABILITIES.................................. 719,315 88,420 11,218 13,452 -------------- ------------ ----------- ----------- NET ASSETS............................................. $2,284,554,890 $539,196,369 $43,383,153 $51,485,533 ============== ============ =========== =========== NET ASSETS CONSIST OF: Paid-in Capital........................................ $2,012,616,323 $511,011,746 $39,525,027 $48,646,543 Undistributed Net Investment Income.................... 3,253,480 511,400 64,039 81,279 Accumulated Net Realized Gain/(Loss) on Investments.... (9,940,772) (1,076,496) 442,000 187,152 Net Unrealized Appreciation on Investments............. 278,625,859 28,749,719 3,352,087 2,570,559 -------------- ------------ ----------- ----------- NET ASSETS............................................. $2,284,554,890 $539,196,369 $43,383,153 $51,485,533 ============== ============ =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value............................................ 45,108,865 4,900,019 1,200,038 1,350,007 ============== ============ =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share............................................ $ 50.65 $ 110.04 $ 36.15 $ 38.14 ============== ============ =========== =========== *Total Cost of Investments............................. $2,005,100,957 $510,045,703 $39,988,935 $48,907,658 ============== ============ =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 62 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P MIDCAP 400 MIDCAP 400 SMALLCAP 600 SMALLCAP 600 PURE VALUE ETF PURE GROWTH ETF PURE VALUE ETF PURE GROWTH ETF -------------- --------------- -------------- --------------- ASSETS Investments at Market Value*.................. $22,321,523 $22,391,212 $23,792,206 $10,580,944 Receivables: Dividends................................... 23,970 3,216 24,628 463 ----------- ----------- ----------- ----------- TOTAL ASSETS.............................. 22,345,493 22,394,428 23,816,834 10,581,407 ----------- ----------- ----------- ----------- LIABILITIES Payables: Accrued Management Fees..................... 5,757 6,303 6,672 2,995 ----------- ----------- ----------- ----------- TOTAL LIABILITIES......................... 5,757 6,303 6,672 2,995 ----------- ----------- ----------- ----------- NET ASSETS.................................... $22,339,736 $22,388,125 $23,810,162 $10,578,412 =========== =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital............................... $21,108,026 $21,341,805 $22,721,168 $ 9,914,908 Undistributed Net Investment Income/(Loss).... 28,637 (2,017) 30,605 (4,455) Accumulated Net Realized Gain on Investments................................. 551,110 143,108 104,031 46,872 Net Unrealized Appreciation on Investments.... 651,963 905,229 954,358 621,087 ----------- ----------- ----------- ----------- NET ASSETS.................................... $22,339,736 $22,388,125 $23,810,162 $10,578,412 =========== =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value................... 600,017 400,008 550,007 250,000 =========== =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share............................. $ 37.23 $ 55.97 $ 43.29 $ 42.31 =========== =========== =========== =========== *Total Cost of Investments.................... $21,669,560 $21,485,983 $22,837,848 $ 9,959,857 =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 63 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT DISCRETIONARY ETF STAPLES ETF ENERGY ETF FINANCIALS ETF ----------------- ------------ ------------ -------------- ASSETS Investments at Market Value*....................... $56,461,870 $7,853,351 $8,393,379 $5,178,970 Receivables: Investments Sold................................. -- 4,892 -- -- Dividends........................................ 16,299 7,791 2,787 5,302 ----------- ---------- ---------- ---------- TOTAL ASSETS................................... 56,478,169 7,866,034 8,396,166 5,184,272 ----------- ---------- ---------- ---------- LIABILITIES Payables: Accrued Management Fees.......................... 18,625 3,193 3,385 2,101 ----------- ---------- ---------- ---------- TOTAL LIABILITIES.............................. 18,625 3,193 3,385 2,101 ----------- ---------- ---------- ---------- NET ASSETS......................................... $56,459,544 $7,862,841 $8,392,781 $5,182,171 =========== ========== ========== ========== NET ASSETS CONSIST OF: Paid-in Capital.................................... $54,817,900 $7,224,635 $7,251,932 $4,977,639 Undistributed Net Investment Income/(Loss)......... 1,819 71,341 (956) 9,033 Accumulated Net Realized Gain on Investments....... 108,691 47,344 49,951 20,380 Net Unrealized Appreciation on Investments......... 1,531,134 519,521 1,091,854 175,119 ----------- ---------- ---------- ---------- NET ASSETS......................................... $56,459,544 $7,862,841 $8,392,781 $5,182,171 =========== ========== ========== ========== Shares Outstanding (Unlimited Shares Authorized), No Par Value..................................... 1,150,000 150,000 150,000 100,000 =========== ========== ========== ========== Net Asset Value, Offering Price and Repurchase Price Per Share.................................. $ 49.10 $ 52.42 $ 55.95 $ 51.82 =========== ========== ========== ========== *Total Cost of Investments......................... $54,930,736 $7,333,830 $7,301,525 $5,003,851 =========== ========== ========== ==========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 64 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT HEALTH CARE ETF INDUSTRIALS ETF MATERIALS ETF TECHNOLOGY ETF UTILITIES ETF --------------- --------------- ------------- -------------- ------------- ASSETS Investments at Market Value*......... $8,515,868 $8,256,661 $5,672,728 $12,946,428 $9,448,047 Receivables: Investments Sold................... -- -- -- 13,045 -- Dividends.......................... 3,274 4,366 3,892 2,195 16,292 ---------- ---------- ---------- ----------- ---------- TOTAL ASSETS..................... 8,519,142 8,261,027 5,676,620 12,961,668 9,464,339 ---------- ---------- ---------- ----------- ---------- LIABILITIES Payables: Due to Custodian................... -- -- -- 3,562 -- Accrued Management Fees............ 3,417 3,313 2,333 5,044 3,863 ---------- ---------- ---------- ----------- ---------- TOTAL LIABILITIES................ 3,417 3,313 2,333 8,606 3,863 ---------- ---------- ---------- ----------- ---------- NET ASSETS........................... $8,515,725 $8,257,714 $5,674,287 $12,953,062 $9,460,476 ========== ========== ========== =========== ========== NET ASSETS CONSIST OF: Paid-in Capital...................... $7,419,653 $7,372,664 $5,315,351 $12,154,577 $8,341,382 Undistributed Net Investment Income/(Loss)...................... 5,477 498 4,143 (5,137) 20,345 Accumulated Net Realized Gain on Investments........................ 136,342 61,122 48,401 71,623 44,183 Net Unrealized Appreciation on Investments........................ 954,253 823,430 306,392 731,999 1,054,566 ---------- ---------- ---------- ----------- ---------- NET ASSETS........................... $8,515,725 $8,257,714 $5,674,287 $12,953,062 $9,460,476 ========== ========== ========== =========== ========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.......... 150,000 150,000 100,000 250,000 150,000 ========== ========== ========== =========== ========== Net Asset Value, Offering Price and Repurchase Price Per Share......... $ 56.77 $ 55.05 $ 56.74 $ 51.81 $ 63.07 ========== ========== ========== =========== ========== *Total Cost of Investments........... $7,561,615 $7,433,231 $5,366,336 $12,214,429 $8,393,481 ========== ========== ========== =========== ==========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 65 STATEMENTS OF OPERATIONS For the Period Ended April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX RYDEX RYDEX S&P RYDEX S&P S&P EQUAL RUSSELL 500 PURE 500 PURE WEIGHT ETF TOP 50 ETF VALUE ETF GROWTH ETF ------------ ------------- ---------- ---------- INVESTMENT INCOME Dividends............................................. $ 16,861,399 $ 5,470,133 $ 329,649 $ 180,770 ------------ ----------- ---------- ---------- Total Income........................................ 16,861,399 5,470,133 329,649 180,770 ------------ ----------- ---------- ---------- EXPENSES Management Fee........................................ 3,931,442 506,557 47,581 51,666 Other Fees............................................ -- -- -- 4 ------------ ----------- ---------- ---------- Total Expenses...................................... 3,931,442 506,557 47,581 51,670 ------------ ----------- ---------- ---------- Net Investment Income................................... 12,929,957 4,963,576 282,068 129,100 ------------ ----------- ---------- ---------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain/(Loss) From: Investments........................................... 7,248,178 (273,546) 494,641 238,903 In-kind Redemptions................................... 32,680,387 19,526,792 -- -- ------------ ----------- ---------- ---------- Net Realized Gain................................... 39,928,565 19,253,246 494,641 238,903 Net Change in Unrealized Appreciation on Investments.... 144,848,315 8,069,156 2,341,111 2,004,100 ------------ ----------- ---------- ---------- Net Realized and Unrealized Gain on Investments......... 184,776,880 27,322,402 2,835,752 2,243,003 ------------ ----------- ---------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................ $197,706,837 $32,285,978 $3,117,820 $2,372,103 ============ =========== ========== ==========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 66 STATEMENTS OF OPERATIONS For the Period Ended April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P MIDCAP MIDCAP SMALLCAP SMALLCAP 400 PURE 400 PURE 600 PURE 600 PURE VALUE ETF GROWTH ETF VALUE ETF GROWTH ETF ---------- ---------- ---------- ---------- INVESTMENT INCOME Dividends................................................ $ 211,661 $ 151,182 $125,341 $ 10,314 Foreign Taxes Withheld................................... -- -- (95) -- ---------- ---------- -------- -------- Total Income........................................... 211,661 151,182 125,246 10,314 ---------- ---------- -------- -------- EXPENSES Management Fee........................................... 25,425 40,511 22,088 14,769 Other Fees............................................... -- 6 135 -- ---------- ---------- -------- -------- Total Expenses......................................... 25,425 40,517 22,223 14,769 ---------- ---------- -------- -------- Net Investment Income/(Loss)............................... 186,236 110,665 103,023 (4,455) ---------- ---------- -------- -------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain From: Investments.............................................. 651,071 230,732 128,746 104,503 In-kind Redemptions...................................... 660,378 482,886 -- -- ---------- ---------- -------- -------- Net Realized Gain...................................... 1,311,449 713,618 128,746 104,503 Net Change in Unrealized Appreciation/(Depreciation) on Investments.............................................. (94) 1,897,877 685,076 567,476 ---------- ---------- -------- -------- Net Realized and Unrealized Gain on Investments............ 1,311,355 2,611,495 813,822 671,979 ---------- ---------- -------- -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS... $1,497,591 $2,722,160 $916,845 $667,524 ========== ========== ======== ========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 67 STATEMENTS OF OPERATIONS For the Period Ended April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT DISCRETIONARY ETF* STAPLES ETF* ENERGY ETF* FINANCIALS ETF* ------------------ ------------ ------------ --------------- INVESTMENT INCOME Dividends..................................... $ 164,235 $135,695 $ 38,982 $ 64,961 ---------- -------- ---------- -------- Total Income................................ 164,235 135,695 38,982 64,961 ---------- -------- ---------- -------- EXPENSES Management Fee................................ 71,427 18,404 18,872 14,395 Other Fees.................................... 24 -- -- -- ---------- -------- ---------- -------- Total Expenses.............................. 71,451 18,404 18,872 14,395 ---------- -------- ---------- -------- Net Investment Income........................... 92,784 117,291 20,110 50,566 ---------- -------- ---------- -------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain From: Investments................................... 108,691 47,344 49,951 20,380 In-kind Redemptions........................... -- -- -- 410,092 ---------- -------- ---------- -------- Net Realized Gain........................... 108,691 47,344 49,951 430,472 Net Change in Unrealized Appreciation on Investments................................... 1,531,134 519,521 1,091,854 175,119 ---------- -------- ---------- -------- Net Realized and Unrealized Gain on Investments................................... 1,639,825 566,865 1,141,805 605,591 ---------- -------- ---------- -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................ $1,732,609 $684,156 $1,161,915 $656,157 ========== ======== ========== ========
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 68 STATEMENTS OF OPERATIONS For the Period Ended April 30, 2007 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT HEALTH CARE ETF* INDUSTRIALS ETF* MATERIALS ETF* TECHNOLOGY ETF* UTILITIES ETF* ---------------- ---------------- -------------- --------------- -------------- INVESTMENT INCOME Dividends...................... $ 32,924 $ 63,499 $ 100,003 $ 15,274 $ 124,847 ---------- -------- ---------- -------- ---------- Total Income................. 32,924 63,499 100,003 15,274 124,847 ---------- -------- ---------- -------- ---------- EXPENSES Management Fee................. 19,361 19,258 23,150 20,411 20,149 ---------- -------- ---------- -------- ---------- Total Expenses............... 19,361 19,258 23,150 20,411 20,149 ---------- -------- ---------- -------- ---------- Net Investment Income/(Loss)..... 13,563 44,241 76,853 (5,137) 104,698 ---------- -------- ---------- -------- ---------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain From: Investments.................... 136,342 61,122 48,401 71,623 44,183 In-kind Redemptions............ -- -- 1,038,098 -- 209,134 ---------- -------- ---------- -------- ---------- Net Realized Gain............ 136,342 61,122 1,086,499 71,623 253,317 Net Change in Unrealized Appreciation on Investments.... 954,253 823,430 306,392 731,999 1,054,566 ---------- -------- ---------- -------- ---------- Net Realized and Unrealized Gain on Investments................. 1,090,595 884,552 1,392,891 803,622 1,307,883 ---------- -------- ---------- -------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $1,104,158 $928,793 $1,469,744 $798,485 $1,412,581 ========== ======== ========== ======== ==========
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 69 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF --------------------------------- SIX MONTHS ENDED APRIL 30, 2007 YEAR ENDED (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- OPERATIONS Net Investment Income..................................... $ 12,929,957 $ 18,288,154 Net Realized Gain......................................... 39,928,565 98,930,337 Net Change in Unrealized Appreciation on Investments...... 144,848,315 112,521,932 -------------- -------------- Net Increase in Net Assets Resulting From Operations...... 197,706,837 229,740,423 -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income..................................... (10,772,207) (17,292,008) -------------- -------------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold................................. 476,159,445 1,072,339,911 Value of Shares Reinvested................................ 108,784 114,370 Value of Shares Repurchased............................... (138,445,077) (596,515,156) -------------- -------------- Net Increase in Net Assets Resulting From Share Transactions............................................ 337,823,152 475,939,125 -------------- -------------- Increase in Net Assets.................................. 524,757,782 688,387,540 NET ASSETS--BEGINNING OF PERIOD............................. 1,759,797,108 1,071,409,568 -------------- -------------- NET ASSETS--END OF PERIOD(1)................................ $2,284,554,890 $1,759,797,108 ============== ============== (1) Including Undistributed Net Investment Income........... $ 3,253,480 $ 1,095,730 ============== ============== CHANGES IN SHARES OUTSTANDING: Shares Sold............................................... 9,800,000 14,253,000 Shares Issued in Connection with Stock Split.............. -- 27,150,006 Shares Reinvested......................................... 2,276 2,583 Shares Repurchased........................................ (2,900,000) (9,950,000) Shares Outstanding, Beginning of Period................... 38,206,589 6,751,000 -------------- -------------- Shares Outstanding, End of Period......................... 45,108,865 38,206,589 ============== ==============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 70 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX RUSSELL TOP 50 ETF --------------------------------- SIX MONTHS ENDED APRIL 30, 2007 YEAR ENDED (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- OPERATIONS Net Investment Income..................................... $ 4,963,576 $ 3,238,051 Net Realized Gain......................................... 19,253,246 6,613,107 Net Change in Unrealized Appreciation on Investments...... 8,069,156 22,742,988 ------------- ------------ Net Increase in Net Assets Resulting From Operations...... 32,285,978 32,594,146 ------------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income..................................... (4,882,377) (3,010,095) ------------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold................................. 271,604,712 275,530,048 Value of Shares Reinvested................................ 1,488 512 Value of Shares Repurchased............................... (124,354,847) (77,658,417) ------------- ------------ Net Increase in Net Assets Resulting From Share Transactions............................................ 147,251,353 197,872,143 ------------- ------------ Increase in Net Assets.................................. 174,654,954 227,456,194 NET ASSETS--BEGINNING OF PERIOD............................. 364,541,415 137,085,221 ------------- ------------ NET ASSETS--END OF PERIOD(1)................................ $ 539,196,369 $364,541,415 ============= ============ (1) Including Undistributed Net Investment Income........... $ 511,400 $ 430,201 ============= ============ CHANGES IN SHARES OUTSTANDING: Shares Sold............................................... 2,550,000 2,800,000 Shares Reinvested......................................... 14 5 Shares Repurchased........................................ (1,150,000) (800,000) Shares Outstanding, Beginning of Period................... 3,500,005 1,500,000 ------------- ------------ Shares Outstanding, End of Period......................... 4,900,019 3,500,005 ============= ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 71 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF --------------------------------- --------------------------------- SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED MARCH 1, 2006* ENDED MARCH 1, 2006* APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH (UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- -------------- ---------------- OPERATIONS Net Investment Income.............................. $ 282,068 $ 191,191 $ 129,100 $ 43,592 Net Realized Gain/(Loss)........................... 494,641 (56,285) 238,903 (51,751) Net Change in Unrealized Appreciation on Investments...................................... 2,341,111 1,010,976 2,004,100 566,459 ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Operations....................................... 3,117,820 1,145,882 2,372,103 558,300 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.............................. (280,397) (125,179) (54,350) (37,063) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.......................... 19,312,213 20,211,486 31,518,196 17,128,091 Value of Shares Reinvested......................... 1,328 -- 256 -- Value of Shares Repurchased........................ -- -- -- -- ----------- ----------- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions..................................... 19,313,541 20,211,486 31,518,452 17,128,091 ----------- ----------- ----------- ----------- Increase in Net Assets........................... 22,150,964 21,232,189 33,836,205 17,649,328 NET ASSETS--BEGINNING OF PERIOD...................... 21,232,189 -- 17,649,328 -- ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)......................... $43,383,153 $21,232,189 $51,485,533 $17,649,328 =========== =========== =========== =========== (1) Including Undistributed Net Investment Income.... $ 64,039 $ 62,368 $ 81,279 $ 6,529 =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold........................................ 550,000 650,000 850,000 500,000 Shares Reinvested.................................. 38 -- 7 -- Shares Repurchased................................. -- -- -- -- Shares Outstanding, Beginning of Period............ 650,000 -- 500,000 -- ----------- ----------- ----------- ----------- Shares Outstanding, End of Period.................. 1,200,038 650,000 1,350,007 500,000 =========== =========== =========== ===========
* The Fund commenced operations on March 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 72 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 RYDEX S&P MIDCAP 400 PURE VALUE ETF PURE GROWTH ETF --------------------------------- --------------------------------- SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED MARCH 1, 2006* ENDED MARCH 1, 2006* APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH (UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- -------------- ---------------- OPERATIONS Net Investment Income.............................. $ 186,236 $ 161,783 $ 110,665 $ 8,022 Net Realized Gain/(Loss)........................... 1,311,449 (106,316) 713,618 (23,417) Net Change in Unrealized Appreciation/(Depreciation) on Investments....... (94) 652,057 1,897,877 (992,648) ----------- ----------- ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations.................................. 1,497,591 707,524 2,722,160 (1,008,043) ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.............................. (179,556) (133,471) (115,045) (5,659) Net Realized Gains................................. -- -- (64,207) -- ----------- ----------- ----------- ----------- Total Distributions................................ (179,556) (133,471) (179,252) (5,659) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.......................... 14,803,538 14,398,483 2,708,945 23,560,420 Value of Shares Reinvested......................... 618 -- 432 -- Value of Shares Repurchased........................ (8,754,991) -- (5,410,878) -- ----------- ----------- ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Share Transactions.......................... 6,049,165 14,398,483 (2,701,501) 23,560,420 ----------- ----------- ----------- ----------- Increase/(Decrease) in Net Assets................ 7,367,200 14,972,536 (158,593) 22,546,718 NET ASSETS--BEGINNING OF PERIOD...................... 14,972,536 -- 22,546,718 -- ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)......................... $22,339,736 $14,972,536 $22,388,125 $22,546,718 =========== =========== =========== =========== (1) Including Undistributed Net Investment Income/(Loss).................................... $ 28,637 $ 21,957 $ (2,017) $ 2,363 =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold........................................ 400,000 450,000 50,000 450,000 Shares Reinvested.................................. 17 -- 8 -- Shares Repurchased................................. (250,000) -- (100,000) -- Shares Outstanding, Beginning of Period............ 450,000 -- 450,000 -- ----------- ----------- ----------- ----------- Shares Outstanding, End of Period.................. 600,017 450,000 400,008 450,000 =========== =========== =========== ===========
* The Fund commenced operations on March 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 73 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 RYDEX S&P SMALLCAP 600 PURE VALUE ETF PURE GROWTH ETF --------------------------------- --------------------------------- SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED MARCH 1, 2006* ENDED MARCH 1, 2006* APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH (UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- -------------- ---------------- OPERATIONS Net Investment Income/(Loss).......................... $ 103,023 $ 55,748 $ (4,455) $ (2,038) Net Realized Gain/(Loss).............................. 128,746 (25,510) 104,503 (239,219) Net Change in Unrealized Appreciation on Investments......................................... 685,076 269,282 567,476 53,611 ----------- ---------- ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations.......................................... 916,845 299,520 667,524 (187,646) ----------- ---------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income................................. (80,121) (47,250) -- -- ----------- ---------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold............................. 16,954,045 5,766,825 2,091,203 15,469,445 Value of Shares Reinvested............................ 298 -- -- -- Value of Shares Repurchased........................... -- -- -- (7,462,114) ----------- ---------- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions.......................................... 16,954,343 5,766,825 2,091,203 8,007,331 ----------- ---------- ----------- ----------- Increase in Net Assets................................ 17,791,067 6,019,095 2,758,727 7,819,685 NET ASSETS--BEGINNING OF PERIOD......................... 6,019,095 -- 7,819,685 -- ----------- ---------- ----------- ----------- NET ASSETS--END OF PERIOD(1)............................ $23,810,162 $6,019,095 $10,578,412 $ 7,819,685 =========== ========== =========== =========== (1) Including Undistributed Net Investment Income/(Loss)....................................... $ 30,605 $ 7,703 $ (4,455) $ -- =========== ========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold........................................... 400,000 150,000 50,000 400,000 Shares Reinvested..................................... 7 -- -- -- Shares Repurchased.................................... -- -- -- (200,000) Shares Outstanding, Beginning of Period............... 150,000 -- 200,000 -- ----------- ---------- ----------- ----------- Shares Outstanding, End of Period..................... 550,007 150,000 250,000 200,000 =========== ========== =========== ===========
* The Fund commenced operations on March 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 74 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT DISCRETIONARY ETF* STAPLES ETF* ENERGY ETF* FINANCIALS ETF* ------------------ ----------------- ----------------- ----------------- FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* THROUGH THROUGH THROUGH THROUGH APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) ------------------ ----------------- ----------------- ----------------- OPERATIONS Net Investment Income.............. $ 92,784 $ 117,291 $ 20,110 $ 50,566 Net Realized Gain.................. 108,691 47,344 49,951 430,472 Net Change in Unrealized Appreciation on Investments...... 1,531,134 519,521 1,091,854 175,119 ----------- ---------- ---------- ------------ Net Increase in Net Assets Resulting From Operations........ 1,732,609 684,156 1,161,915 656,157 ----------- ---------- ---------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.............. (90,965) (45,950) (21,066) (41,533) ----------- ---------- ---------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.......... 54,817,900 7,224,635 7,251,932 29,560,717 Value of Shares Reinvested......... -- -- -- -- Value of Shares Repurchased........ -- -- -- (24,993,170) ----------- ---------- ---------- ------------ Net Increase in Net Assets Resulting From Share Transactions................. 54,817,900 7,224,635 7,251,932 4,567,547 ----------- ---------- ---------- ------------ Increase in Net Assets............. 56,459,544 7,862,841 8,392,781 5,182,171 NET ASSETS--BEGINNING OF PERIOD...... -- -- -- -- ----------- ---------- ---------- ------------ NET ASSETS--END OF PERIOD(1)......... $56,459,544 $7,862,841 $8,392,781 $ 5,182,171 =========== ========== ========== ============ (1) Including Undistributed Net Investment Income/(Loss)......... $ 1,819 $ 71,341 $ (956) $ 9,033 =========== ========== ========== ============ CHANGES IN SHARES OUTSTANDING: Shares Sold........................ 1,150,000 150,000 150,000 600,000 Shares Reinvested.................. -- -- -- -- Shares Repurchased................. -- -- -- (500,000) Shares Outstanding, Beginning of Period........................... -- -- -- -- ----------- ---------- ---------- ------------ Shares Outstanding, End of Period........................... 1,150,000 150,000 150,000 100,000 =========== ========== ========== ============
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 75 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY ETF* ETF* ETF* ETF* ----------------- ----------------- ----------------- ----------------- FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* THROUGH THROUGH THROUGH THROUGH APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) ----------------- ----------------- ----------------- ----------------- OPERATIONS Net Investment Income/(Loss)......... $ 13,563 $ 44,241 $ 76,853 $ (5,137) Net Realized Gain....... 136,342 61,122 1,086,499 71,623 Net Change in Unrealized Appreciation on Investments........... 954,253 823,430 306,392 731,999 ---------- ---------- ------------ ----------- Net Increase in Net Assets Resulting From Operations............ 1,104,158 928,793 1,469,744 798,485 ---------- ---------- ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income... (8,086) (43,743) (72,710) -- ---------- ---------- ------------ ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.................. 7,419,653 7,372,664 20,248,804 12,154,577 Value of Shares Reinvested............ -- -- -- -- Value of Shares Repurchased........... -- -- (15,971,551) -- ---------- ---------- ------------ ----------- Net Increase in Net Assets Resulting From Share Transactions............ 7,419,653 7,372,664 4,277,253 12,154,577 ---------- ---------- ------------ ----------- Increase in Net Assets................ 8,515,725 8,257,714 5,674,287 12,953,062 NET ASSETS--BEGINNING OF PERIOD.................. -- -- -- -- ---------- ---------- ------------ ----------- NET ASSETS--END OF PERIOD(1)............... $8,515,725 $8,257,714 $ 5,674,287 $12,953,062 ========== ========== ============ =========== (1) Including Undistributed Net Investment Income/(Loss)......... $ 5,477 $ 498 $ 4,143 $ (5,137) ========== ========== ============ =========== CHANGES IN SHARES OUTSTANDING: Shares Sold............. 150,000 150,000 400,000 250,000 Shares Reinvested....... -- -- -- -- Shares Repurchased...... -- -- (300,000) -- Shares Outstanding, Beginning of Period... -- -- -- -- ---------- ---------- ------------ ----------- Shares Outstanding, End of Period............. 150,000 150,000 100,000 250,000 ========== ========== ============ =========== RYDEX S&P EQUAL WEIGHT UTILITIES ETF* ----------------- FOR THE PERIOD NOVEMBER 1, 2006* THROUGH APRIL 30, 2007 (UNAUDITED) ----------------- OPERATIONS Net Investment Income/(Loss)......... $ 104,698 Net Realized Gain....... 253,317 Net Change in Unrealized Appreciation on Investments........... 1,054,566 ----------- Net Increase in Net Assets Resulting From Operations............ 1,412,581 ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income... (84,353) ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.................. 13,839,342 Value of Shares Reinvested............ -- Value of Shares Repurchased........... (5,707,094) ----------- Net Increase in Net Assets Resulting From Share Transactions............ 8,132,248 ----------- Increase in Net Assets................ 9,460,476 NET ASSETS--BEGINNING OF PERIOD.................. -- ----------- NET ASSETS--END OF PERIOD(1)............... $ 9,460,476 =========== (1) Including Undistributed Net Investment Income/(Loss)......... $ 20,345 =========== CHANGES IN SHARES OUTSTANDING: Shares Sold............. 250,000 Shares Reinvested....... -- Shares Repurchased...... (100,000) Shares Outstanding, Beginning of Period... -- ----------- Shares Outstanding, End of Period............. 150,000 ===========
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 76 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF --------------------------------------- SIX MONTHS ENDED APRIL 30, 2007 YEAR ENDED (UNAUDITED) OCTOBER 31, 2006(1) -------------- ------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD..... $46.06 $39.68 -------------- ------------------- Net Investment Income**... 0.31 0.52 Net Realized and Unrealized Gain on Investments............. 4.54 6.36 -------------- ------------------- TOTAL FROM INVESTMENT OPERATIONS.............. 4.85 6.88 -------------- ------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income..... (0.26) (0.50) -------------- ------------------- NET ASSET VALUE AT END OF PERIOD.................. $50.65 $46.06 ============== =================== TOTAL RETURN***........... 10.56% 17.42% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)................ $2,284,555 $1,759,797 RATIO TO AVERAGE NET ASSETS OF: Expenses.................. 0.40%**** 0.40% Net Investment Income..... 1.32%**** 1.21% Portfolio Turnover Rate+................... 11% 16% RYDEX S&P EQUAL WEIGHT ETF --------------------------------------------------------------- FOR THE PERIOD APRIL 24, 2003* YEAR ENDED YEAR ENDED THROUGH OCTOBER 31, 2005(1) OCTOBER 31, 2004(1) OCTOBER 31, 2003(1) ------------------- ------------------- ------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD..... $35.70 $31.61 $25.26 ------------------- ------------------- ------------------- Net Investment Income**... 0.43 0.37 0.18 Net Realized and Unrealized Gain on Investments............. 3.95 4.08 6.33 ------------------- ------------------- ------------------- TOTAL FROM INVESTMENT OPERATIONS.............. 4.38 4.45 6.51 ------------------- ------------------- ------------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income..... (0.40) (0.36) (0.16) ------------------- ------------------- ------------------- NET ASSET VALUE AT END OF PERIOD.................. $39.68 $35.70 $31.61 =================== =================== =================== TOTAL RETURN***........... 12.29% 14.11% 25.77% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)................ $1,071,410 $485,636 $177,135 RATIO TO AVERAGE NET ASSETS OF: Expenses.................. 0.40% 0.40% 0.40%**** Net Investment Income..... 1.11% 1.09% 1.13%**** Portfolio Turnover Rate+................... 22% 55% 42%
* The Fund commenced operations on April 24, 2003. ** 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 distributions 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 stock 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 77 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX RUSSELL TOP 50 ETF ----------------------------------------------------------- SIX MONTHS FOR THE PERIOD ENDED MAY 4, 2005* APRIL 30, 2007 YEAR ENDED THROUGH (UNAUDITED) 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**.................................. 1.04 1.92 0.79 Net Realized and Unrealized Gain/(Loss) on Investments... 5.86 12.71 (0.46) -------------- ---------------- ---------------- TOTAL FROM INVESTMENT OPERATIONS......................... 6.90 14.63 0.33 -------------- ---------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.................................... (1.01) (1.87) (0.45) -------------- ---------------- ---------------- NET ASSET VALUE AT END OF PERIOD......................... $110.04 $104.15 $91.39 ============== ================ ================ TOTAL RETURN***.......................................... 6.66% 16.18% 0.36% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted).............. $539,196 $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+................................. 1% 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 distributions 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 78 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P 500 RYDEX S&P 500 PURE VALUE ETF PURE GROWTH ETF ------------------------------------ ------------------------------------ SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED MARCH 1, 2006* ENDED MARCH 1, 2006* APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH (UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- -------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD...... $32.66 $29.87 $35.30 $34.42 -------------- ---------------- -------------- --------------- Net Investment Income**.... 0.36 0.49 0.16 0.11 Net Realized and Unrealized Gain on Investments...... 3.49 2.58 2.75 0.84 -------------- ---------------- -------------- --------------- TOTAL FROM INVESTMENT OPERATIONS............... 3.85 3.07 2.91 0.95 -------------- ---------------- -------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income...... (0.36) (0.28) (0.07) (0.07) -------------- ---------------- -------------- --------------- NET ASSET VALUE AT END OF PERIOD................... $36.15 $32.66 $38.14 $35.30 ============== ================ ============== =============== TOTAL RETURN***............ 11.85% 10.27% 8.24% 2.77% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted).......... $43,383 $21,232 $51,486 $17,649 RATIO TO AVERAGE NET ASSETS OF: Expenses................... 0.35%**** 0.35%**** 0.35%**** 0.35%**** Net Investment Income...... 2.07%**** 2.37%**** 0.87%**** 0.48%**** Portfolio Turnover Rate+... 24% 4% 23% 7% RYDEX S&P MIDCAP 400 PURE VALUE ETF ------------------------------------ SIX MONTHS FOR THE PERIOD ENDED MARCH 1, 2006* APRIL 30, 2007 THROUGH (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD...... $33.27 $31.53 -------------- ---------------- Net Investment Income**.... 0.45 0.44 Net Realized and Unrealized Gain on Investments...... 3.93 1.60 -------------- ---------------- TOTAL FROM INVESTMENT OPERATIONS............... 4.38 2.04 -------------- ---------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income...... (0.42) (0.30) -------------- ---------------- NET ASSET VALUE AT END OF PERIOD................... $37.23 $33.27 ============== ================ TOTAL RETURN***............ 13.23% 6.48% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted).......... $22,340 $14,973 RATIO TO AVERAGE NET ASSETS OF: Expenses................... 0.35%**** 0.35%**** Net Investment Income...... 2.56%**** 2.07%**** Portfolio Turnover Rate+... 44% 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 distributions 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 79 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF PURE VALUE ETF ------------------------------------ ------------------------------------ SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED MARCH 1, 2006* ENDED MARCH 1, 2006* APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH (UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- -------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD..... $50.10 $52.62 $40.13 $38.45 -------------- ----------- -------------- ----------- Net Investment Income (Loss)**................ 0.25 0.02 0.34 0.37 Net Realized and Unrealized Gain/(Loss) on Investments.......... 6.02 (2.53) 3.08 1.62 -------------- ----------- -------------- ----------- TOTAL FROM INVESTMENT OPERATIONS.............. 6.27 (2.51) 3.42 1.99 -------------- ----------- -------------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income..... (0.26) (0.01) (0.26) (0.31) Net Realized Gains........ (0.14) -- -- -- -------------- ----------- -------------- ----------- Total Distributions....... (0.40) (0.01) (0.26) (0.31) -------------- ----------- -------------- ----------- NET ASSET VALUE AT END OF PERIOD.................. $55.97 $50.10 $43.29 $40.13 ============== =========== ============== =========== TOTAL RETURN***........... 12.54% (4.76)% 8.56% 5.19% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)................ $22,388 $22,547 $23,810 $6,019 RATIO TO AVERAGE NET ASSETS OF: Expenses.................. 0.35%**** 0.35%**** 0.35%*** 0.35%**** Net Investment Income (Loss).................. 0.96%**** 0.07%**** 1.63%*** 1.46%**** Portfolio Turnover Rate+................... 41% 14% 40% 7% RYDEX S&P SMALLCAP 600 PURE GROWTH ETF ------------------------------------ SIX MONTHS FOR THE PERIOD ENDED MARCH 1, 2006* APRIL 30, 2007 THROUGH (UNAUDITED) OCTOBER 31, 2006 -------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD..... $39.10 $39.31 -------------- ---------- Net Investment Income (Loss)**................ (0.02) (0.01) Net Realized and Unrealized Gain/(Loss) on Investments.......... 3.23 (0.20) -------------- ---------- TOTAL FROM INVESTMENT OPERATIONS.............. 3.21 (0.21) -------------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income..... -- -- Net Realized Gains........ -- -- -------------- ---------- Total Distributions....... -- -- -------------- ---------- NET ASSET VALUE AT END OF PERIOD.................. $42.31 $39.10 ============== ========== TOTAL RETURN***........... 8.22% (0.55)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)................ $10,578 $7,820 RATIO TO AVERAGE NET ASSETS OF: Expenses.................. 0.35%**** 0.35%**** Net Investment Income (Loss).................. -0.11%**** -0.04%**** Portfolio Turnover Rate+................... 33% 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 distributions 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 80 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P CONSUMER EQUAL WEIGHT DISCRETIONARY CONSUMER STAPLES ETF ETF ----------------- ----------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 1, 2006* NOVEMBER 1, 2006* THROUGH THROUGH APRIL 30, 2007 APRIL 30, 2007 (UNAUDITED) (UNAUDITED) ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD... $44.98 $48.16 ----------------- ----------------- Net Investment Income**.................. 0.15 0.78 Net Realized and Unrealized Gain on Investments**.......................... 4.13 3.79 ----------------- ----------------- TOTAL FROM INVESTMENT OPERATIONS......... 4.28 4.57 ----------------- ----------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.................... (0.16) (0.31) ----------------- ----------------- NET ASSET VALUE AT END OF PERIOD......... $49.10 $52.42 ================= ================= TOTAL RETURN***.......................... 9.51% 9.50% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)............................... $56,460 $7,863 RATIO TO AVERAGE NET ASSETS OF: Expenses................................. 0.50%**** 0.50%**** Net Investment Income.................... 0.65%**** 3.17%**** Portfolio Turnover Rate+................. 12% 9% RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT ENERGY FINANCIALS ETF ETF ----------------- ----------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 1, 2006* NOVEMBER 1, 2006* THROUGH THROUGH APRIL 30, 2007 APRIL 30, 2007 (UNAUDITED) (UNAUDITED) ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD... $48.35 $48.57 ----------------- ----------------- Net Investment Income**.................. 0.13 0.44 Net Realized and Unrealized Gain on Investments**.......................... 7.61 3.23 ----------------- ----------------- TOTAL FROM INVESTMENT OPERATIONS......... 7.74 3.67 ----------------- ----------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.................... (0.14) (0.42) ----------------- ----------------- NET ASSET VALUE AT END OF PERIOD......... $55.95 $51.82 ================= ================= TOTAL RETURN***.......................... 16.06% 7.58% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)............................... $8,393 $5,182 RATIO TO AVERAGE NET ASSETS OF: Expenses................................. 0.50%**** 0.50%**** Net Investment Income.................... 0.53%**** 1.75%**** Portfolio Turnover Rate+................. 14% 15%
* 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 distributions 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 81 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY ETF ETF ETF ETF ----------------- ----------------- ----------------- ----------------- FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* THROUGH THROUGH THROUGH THROUGH APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) ----------------- ----------------- ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD..... $49.46 $49.15 $48.43 $47.80 ----------------- ----------------- ----------------- ----------------- Net Investment Income/(Loss)**......... 0.09 0.29 0.44 (0.03) Net Realized and Unrealized Gain on Investments**........... 7.27 5.90 8.16 4.04 ----------------- ----------------- ----------------- ----------------- TOTAL FROM INVESTMENT OPERATIONS.............. 7.36 6.19 8.60 4.01 ----------------- ----------------- ----------------- ----------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income..... (0.05) (0.29) (0.29) -- ----------------- ----------------- ----------------- ----------------- NET ASSET VALUE AT END OF PERIOD.................. $56.77 $55.05 $56.74 $51.81 ================= ================= ================= ================= TOTAL RETURN***........... 14.89% 12.64% 17.80% 8.39% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)................ $8,516 $8,258 $5,674 $12,953 RATIO TO AVERAGE NET ASSETS OF: Expenses.................. 0.50%**** 0.50%**** 0.50%**** 0.50%**** Net Investment Income..... 0.35%**** 1.14%**** 1.65%**** -0.13%**** Portfolio Turnover Rate+................... 59% 13% 18% 18% RYDEX S&P EQUAL WEIGHT UTILITIES ETF ----------------- FOR THE PERIOD NOVEMBER 1, 2006* THROUGH APRIL 30, 2007 (UNAUDITED) ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD..... $54.91 ----------------- Net Investment Income/(Loss)**......... 0.75 Net Realized and Unrealized Gain on Investments**........... 7.97 ----------------- TOTAL FROM INVESTMENT OPERATIONS.............. 8.72 ----------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income..... (0.56) ----------------- NET ASSET VALUE AT END OF PERIOD.................. $63.07 ================= TOTAL RETURN***........... 15.96% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)................ $9,460 RATIO TO AVERAGE NET ASSETS OF: Expenses.................. 0.50%**** Net Investment Income..... 2.58%**** Portfolio Turnover Rate+................... 9%
* 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 distributions 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 82 NOTES TO FINANCIAL STATEMENTS (UNAUDITED) April 30, 2007 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. The Trust currently consists of seventeen series: Rydex S&P Equal Weight ETF, Rydex Russell Top 50 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, 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 (each a "Fund" and collectively, the "Funds"). Rydex S&P Equal Weight ETF commenced operations on April 24, 2003. Rydex Russell Top 50 ETF commenced operations on May 4, 2005. Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure Growth ETF, Rydex S&P MidCap 400 Pure Value ETF, Rydex S&P MidCap 400 Pure Growth ETF, Rydex S&P SmallCap 600 Pure Value ETF and Rydex S&P SmallCap 600 Pure Growth ETF commenced operations on March 1, 2006. Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal Weight Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal Weight Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal Weight Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal Weight Technology ETF and Rydex S&P Equal Weight Utilities ETF commenced operations on November 1, 2006. The Funds' investment objective is to provide investment results that correspond generally to the performance, before fees and expenses, of an index representing publicly traded equity securities (the "Underlying Index"). Rydex S&P 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. 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 accounting principles generally accepted in the United States of America 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 SEMI-ANNUAL REPORT 83 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 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 the 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. On September 15, 2006, the Financial Accounting Standards Board ("FASB") released Statement of Financial Accounting Standard No. 157 Fair Value Measurement ("FAS 157") which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity's financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications. Adoption of FAS 157 is required for fiscal years beginning after November 15, 2007. The standard is not expected to materially impact the Funds' financial statements. B. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are recorded on the trade date. Realized gains and losses from portfolio fund transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date, net of foreign tax withholdings. Interest income is recorded on the accrual basis. C. REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements with financial institutions. 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 Global Advisors, which acts as the Funds' investment advisor (the "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 the Advisor, liquidity or other considerations so warrant. For the six months ended April 30, 2007, the Funds had not engaged in repurchase 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 distribute all of the taxable income to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. 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, 2007, 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 gains for the six months ended April 30, 2007 are disclosed in the Funds Statement of Operations. SEMI-ANNUAL REPORT 84 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- At April 30, 2007, the Funds had a capital loss carryforwards which may be utilized to offset any net realized capital gains expiring October 31:
2010 2013 2014 -------- ---------- ----------- Rydex S&P Equal Weight ETF.................................. $272,282 $5,596,230 $10,726,815 Rydex Russell Top 50 ETF.................................... -- 88,468 675,404 Rydex S&P 500 Pure Value ETF................................ -- -- 44,302 Rydex S&P 500 Pure Growth ETF............................... -- -- 28,988 Rydex S&P MidCap 400 Pure Value ETF......................... -- -- 94,708 Rydex S&P MidCap 400 Pure Growth ETF........................ -- -- -- Rydex S&P SmallCap 600 Pure Value ETF....................... -- -- 16,696 Rydex S&P SmallCap 600 Pure Growth ETF...................... -- -- 27,599 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........................ -- -- --
On July 13, 2006, the FASB released FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns 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. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows implementing FIN 48 in fund net asset value calculations as late as a fund's last net asset value calculation in the first required financial statement reporting period. As a result, the Funds will incorporate FIN 48 in their semi-annual report on April 30, 2008. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined. E. DIVIDENDS AND DISTRIBUTIONS The Funds declare and pay dividends from net investment income and distribute from net realized capital gains at least annually. F. 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 Rydex Russell Top 50 ETF and Rydex S&P Equal Weight Sector ETFs are non-diversified funds, subjecting them to a greater risk than funds that are diversified. 3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES The Advisor 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 SEMI-ANNUAL REPORT 85 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- the relevant index. For these services, the Advisor receives an advisory fee at the annual rate shown below of the average daily net assets of the Funds.
ADVISORY FEE ------------ Rydex S&P Equal Weight ETF.................................. 0.40% Rydex Russell Top 50 ETF.................................... 0.20% 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%
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 fees or expenses and extraordinary expenses. Under an Administration agreement, State Street Bank and Trust Company (the "Administrator") provides various administrative and accounting services for the maintenance and operations of the Funds. Under a Custodian Agreement with the Trust, the Administrator maintains cash, securities and other assets of the Trust and the Funds in separate accounts for each fund, keeps all necessary accounts and records, and provides other services. The Administrator is required, upon the order of the Trust, to deliver securities held by the Custodian and to make payments for securities purchased by the Trust for the Funds. Pursuant to a Transfer Agency and Service Agreement with the Trust, the Administrator acts as a transfer agent for the Trust's authorized and issued shares of beneficial interest, and as dividend disbursing agent of the Trust. The Advisor compensates the Administrator directly for the foregoing services. The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to pay distribution fees to Rydex Distributors, Inc. (the "Distributor") and other firms that provide distribution services ("Service Providers"). If a Service Provider provides distribution services, the Funds will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets, 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, 2007, 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 SEMI-ANNUAL REPORT 86 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 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 S&P Equal Weight ETF.................................. $2,000 Rydex Russell Top 50 ETF.................................... 500 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, 2007 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ------------ Rydex S&P Equal Weight ETF.................................. $475,053,289 $137,509,820 Rydex Russell Top 50 ETF.................................... 268,864,109 123,898,183 Rydex S&P 500 Pure Value ETF................................ 19,271,797 -- Rydex S&P 500 Pure Growth ETF............................... 31,493,993 -- Rydex S&P MidCap 400 Pure Value ETF......................... 14,763,237 8,681,226 Rydex S&P MidCap 400 Pure Growth ETF........................ 2,709,257 5,411,275 Rydex S&P SmallCap 600 Pure Value ETF....................... 16,864,336 -- Rydex S&P SmallCap 600 Pure Growth ETF...................... 2,092,319 -- Rydex S&P Equal Weight Consumer Discretionary ETF........... 54,574,401 -- Rydex S&P Equal Weight Consumer Staples ETF................. 7,224,944 -- Rydex S&P Equal Weight Energy ETF........................... 7,252,144 -- Rydex S&P Equal Weight Financials ETF....................... 29,515,781 24,978,240 Rydex S&P Equal Weight Health Care ETF...................... 7,419,930 -- Rydex S&P Equal Weight Industrials ETF...................... 7,372,804 -- Rydex S&P Equal Weight Materials ETF........................ 20,236,584 15,970,615 Rydex S&P Equal Weight Technology ETF....................... 12,157,185 -- Rydex S&P Equal Weight Utilities ETF........................ 13,834,457 5,707,091
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.................................. $222,285,144 $224,851,539 Rydex Russell Top 50 ETF.................................... 5,823,019 9,164,760 Rydex S&P 500 Pure Value ETF................................ 6,942,962 6,678,254 Rydex S&P 500 Pure Growth ETF............................... 7,001,120 7,729,156 Rydex S&P MidCap 400 Pure Value ETF......................... 7,144,761 6,706,642 Rydex S&P MidCap 400 Pure Growth ETF........................ 9,934,472 9,225,049 Rydex S&P SmallCap 600 Pure Value ETF....................... 5,400,759 5,375,606 Rydex S&P SmallCap 600 Pure Growth ETF...................... 3,115,557 2,760,677 Rydex S&P Equal Weight Consumer Discretionary ETF........... 3,600,264 3,521,351 Rydex S&P Equal Weight Consumer Staples ETF................. 720,447 668,669 Rydex S&P Equal Weight Energy ETF........................... 1,063,407 1,166,915 Rydex S&P Equal Weight Financials ETF....................... 1,038,144 1,018,675 Rydex S&P Equal Weight Health Care ETF...................... 4,685,832 4,620,994 Rydex S&P Equal Weight Industrials ETF...................... 1,001,842 1,043,701 Rydex S&P Equal Weight Materials ETF........................ 1,354,331 1,467,053 Rydex S&P Equal Weight Technology ETF....................... 1,440,047 1,459,424 Rydex S&P Equal Weight Utilities ETF........................ 745,029 716,757
SEMI-ANNUAL REPORT 87 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- At April 30, 2007, gross unrealized appreciation of investments for the Funds were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION COST APPRECIATION DEPRECIATION (DEPRECIATION) -------------- ------------ ------------ -------------- Rydex S&P Equal Weight ETF.................................. $2,005,100,957 $315,386,352 $36,760,493 $278,625,859 Rydex Russell Top 50 ETF.................................... 510,045,703 32,887,175 4,137,456 28,749,719 Rydex S&P 500 Pure Value ETF................................ 39,988,935 3,650,545 298,458 3,352,087 Rydex S&P 500 Pure Growth ETF............................... 48,907,658 3,374,977 804,418 2,570,559 Rydex S&P MidCap 400 Pure Value ETF......................... 21,669,560 1,190,163 538,200 651,963 Rydex S&P MidCap 400 Pure Growth ETF........................ 21,485,983 2,086,070 1,180,841 905,229 Rydex S&P SmallCap 600 Pure Value ETF....................... 22,837,848 1,724,901 770,543 954,358 Rydex S&P SmallCap 600 Pure Growth ETF...................... 9,959,857 1,091,952 470,865 621,087 Rydex S&P Equal Weight Consumer Discretionary ETF........... 54,930,736 2,717,827 1,186,693 1,531,134 Rydex S&P Equal Weight Consumer Staples ETF................. 7,333,830 665,912 146,391 519,521 Rydex S&P Equal Weight Energy ETF........................... 7,301,525 1,106,751 14,897 1,091,854 Rydex S&P Equal Weight Financials ETF....................... 5,003,851 249,216 74,097 175,119 Rydex S&P Equal Weight Health Care ETF...................... 7,561,615 1,001,573 47,320 954,253 Rydex S&P Equal Weight Industrials ETF...................... 7,433,231 879,461 56,031 823,430 Rydex S&P Equal Weight Materials ETF........................ 5,366,336 407,811 101,419 306,392 Rydex S&P Equal Weight Technology ETF....................... 12,214,429 945,500 213,501 731,999 Rydex S&P Equal Weight Utilities ETF........................ 8,393,481 1,059,665 5,099 1,054,566
SEMI-ANNUAL REPORT 88 SUPPLEMENTAL INFORMATION -------------------------------------------------------------------------------- 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, is also available, without charge and upon request, by (i) calling 1-800-820-0888; or accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov. QUARTERLY PORTFOLIO SCHEDULES INFORMATION The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC's website at http://www.sec.gov. The Trust's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 1-800-820-0888. SEMI-ANNUAL REPORT 89 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 1-800-820-0888. All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850. TRUSTEES AND OFFICERS
LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE YEAR OF BIRTH (YEAR BEGAN) NUMBER OF FUNDS OVERSEEN ---------------------------- ------------------------------------------------------- ---------------------------- CARL G. VERBONCOEUR* Rydex Series Funds - 2004 140 Trustee, President (1952) Rydex Variable Trust - 2004 Rydex Dynamic Funds - 2004 Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer and Treasurer of Rydex Specialized Products, LLC (2005 to present); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present); Executive Vice President of Rydex Investments (2000 to 2003) --------------- MICHAEL P. BYRUM* Rydex Series Funds - 2005 140 Trustee, Vice President Rydex Variable Trust - 2005 (1970) Rydex Dynamic Funds - 2005 Rydex ETF Trust - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Specialized Products, LLC (2005 to present); Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE YEAR OF BIRTH (YEAR BEGAN) NUMBER OF FUNDS OVERSEEN ---------------------------- ------------------------------------------------------- ---------------------------- JOHN O. DEMARET Rydex Series Funds - 1997 132 Trustee, Chairman of the Rydex Variable Trust - 1998 Board (1940) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------- COREY A. COLEHOUR Rydex Series Funds - 1993 132 Trustee (1945) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2006-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 132 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 132 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 132 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 132 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. --------------- SEMI-ANNUAL REPORT 90 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (CONT.) LENGTH OF SERVICE NAME, POSITION AND AS TRUSTEE YEAR OF BIRTH (YEAR BEGAN) NUMBER OF FUNDS OVERSEEN ---------------------------- ------------------------------------------------------- ---------------------------- ROGER SOMERS Rydex Series Funds - 1993 132 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine -------------------------------------------------------------------------------- EXECUTIVE OFFICERS
NAME, POSITION AND YEAR OF BIRTH PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS -------------------------------------------------------- -------------------------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Specialized Products, Vice President and Treasurer (1963) LLC (2005 to present); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice President of Accounting of Rydex Investments (2000 to 2003) JOANNA M. HAIGNEY* Chief Compliance Officer of Rydex Series Funds, Rydex Chief Compliance Officer and Secretary (1966) Variable Trust, and Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Funds, Rydex Assistant Treasurer (1966) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006); Vice President of Rydex Investments (2004 to present); Director of Accounting of Rydex Investments (2003 to 2004); Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Variable Trust, Controller (1974) Rydex Dynamic Funds, Rydex ETF Trust (2006); Director of Fund Administration of Rydex Investments (2001 to present)
* Officers of the Fund are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the Advisor. [RYDEX INVESTMENTS LOGO] [GRAPHIC] 9601 Blackwell Road o Suite 500 o Rockville, MD 20850 www.rydexinvestments.com o 800.820.0888 ETF-SEMI-ANN-0407X1007 ITEM 2. CODE OF ETHICS. Not applicable at this time. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable at this time. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable at this time. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) Based on their evaluation on July 5, 2007, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex ETF Trust (the "Trust") believe that there were no significant deficiencies in the design or operation of the internal controls of the Trust or Rydex Global Advisors ("RGA"), the investment advisor and manager of the Trust, and State Street Bank and Trust Company (the "Administrator"), the administrator of the Trust, or Rydex Distributors, Inc. ("RD"), which acts as distributor for the Trust, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) which would have adversely affected the ability of the Trust, the Administrator or RGA on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report, and the President and Treasurer of the Trust have identified no material weaknesses in such internal controls on behalf of the Trust. There was no fraud, whether or not material, involving officers or employees of RGA, the Administrator, RD or the Trust who have a significant role in the Trust's internal controls, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come to the attention of the advisor or the officers of the Trust, including its President and Treasurer. (b) There were no significant changes in the Trust's and RGA'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)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is attached. (a)(2) Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached. (b) A certification by the registrant's President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Rydex ETF Trust -------------------------------------------------------------------- By (Signature and Title)* /s/ Carl G. Verboncoeur --------------------------------------------------------- Carl G. Verboncoeur, President Date July 5, 2007 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Carl G. Verboncoeur ------------------------------------------------------- Carl G. Verboncoeur, President Date July 5, 2007 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ Nick Bonos ------------------------------------------------------- Nick Bonos, Vice President and Treasurer Date July 5, 2007 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.