N-CSRS 1 b71029a1nvcsrs.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, 2008 Date of reporting period: April 30, 2008 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. April 30, 2008 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 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.................................................. 7 STATEMENTS OF ASSETS AND LIABILITIES..................................... 16 STATEMENTS OF OPERATIONS................................................. 17 STATEMENTS OF CHANGES IN NET ASSETS...................................... 18 FINANCIAL HIGHLIGHTS..................................................... 19 NOTES TO FINANCIAL STATEMENTS............................................ 21 SUPPLEMENTAL INFORMATION................................................. 25
SEMI-ANNUAL REPORT 2 -------------------------------------------------------------------------------- DEAR SHAREHOLDER, Rydex is a proud participant in the ETF space, having $6.1 million in ETF assets, 31 exchange traded products and plans to introduce many more in the future. In the last six months, we've launched six new exchange traded products and in the past year our assets have grown more than 27%. Because of their cost-effectiveness, transparency, convenience and accessibility, ETFs can be a beneficial part of most investor portfolios. However, lack of education about the products can be a barrier for many investors. For example, a Rydex survey of individual mutual fund investors in 2007 found that more than half (53%) of investors do not know the difference between a mutual fund and ETF and 38% don't know what an ETF is.(1) Rydex believes that investors need to be knowledgeable about their investment selections -- whether they choose ETFs or any other investment option. That's why we created ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help boost ETF knowledge for both advisors and their clients. ETF Essentials presents information in simple, understandable language and is available via podcast (audio downloads), print and online. It's free and can be requested on the Rydex web site (www.rydexinvestments.com). MARKET RECAP The six-month period ending April 30 was a momentous one in many respects. The U.S. financial system teetered on the brink of collapse as the ongoing crisis in the nation's credit markets seemed to threaten the solvency of many major Wall Street institutions. Indeed, financial market turmoil, the magnitude of which had not been seen in decades, led to the dramatic collapse of Bear Stearns, a powerhouse investment bank that traced its origins back to the 1920s and had successfully weathered the Great Depression. References to the Great Depression are appropriate since many of the emergency actions taken by the Fed to keep the financial system afloat during this period had their origins in that earlier crisis. The acceptance of mortgage-backed debt as collateral, and lending to non-depository institutions in particular are policies taken straight from the 1930s. Most financial crises lead to the demise of at least one major financial institution -- think of Penn Central, Continental Illinois and Long Term Capital Management -- and this one was no exception. If there is good news here, it is that collapses, such as Bear Stearns in March, usually signify the beginning of the end of a financial panic. True to form, once it was clear that other major financial institutions did not face solvency issues along the lines of Bear Stearns, stocks soared in a classic relief rally. Although there was a perceptible shift in sentiment at the tail end of the period, it was not enough to reverse what was a difficult period for stocks. The bellwether S&P 500 fell nearly 10% as investors ran to the safety of U.S. Treasury securities, pulling long-term interest rates to five-year lows in the process. The Fed slashed interest rates at the fastest pace in history, dropping the widely watched Fed Funds target rate to 2.00% from 4.50% in five sweeping moves. In this crisis environment the Fed, in conjunction with other central banks, continuously pumped hundreds of billions of dollars of liquidity into the global financial system. In fact, government at all levels was in full crisis prevention mode. Congress and the Bush administration forged a $168 billion fiscal stimulus plan with lightning speed and the nation's home lending industry, in the form of Fannie Mae and Freddie Mac, was restructured to help relieve pressure on the beleaguered housing market. Risk exposures of all types were sold indiscriminately, hitting financials, technology and consumer discretionary stocks particularly hard. Aggravated by a weakening job market, falling housing values and rising inflation, consumer sentiment levels hit multi-year lows. With all the ingredients for a recession firmly in place -- shrinking payrolls, declining retail sales, curtailed capital spending plans and falling wealth levels -- economic activity essentially crawled to a halt. The cheap U.S. dollar fueled a boom in exports, which kept economic growth just barely in the black. One outgrowth of the dollar's descent in foreign exchange markets was a corresponding rise in commodity prices. The speculative boom in commodity prices reached a frenzy, putting commodity index levels at 10-year highs. Much of that was driven by oil, the price of which rose in excess of 20% and broke the $100/bbl. level in early March. ---------- (1) Rydex Investments in conjunction with e-Rewards Market Research conducted this survey of individual investors in July 2007. The survey was conducted with 500 individual mutual fund investors. All participants had investable assets of more than $100K, with 150 of the participants having investable assets of more than $500K. e-Rewards Market Research is not affiliated with Rydex Investments. Although Rydex Investments believes the information from this organization is correct, it cannot, and does not, guarantee or warrant the completeness or suitability of this information. SEMI-ANNUAL REPORT 3 -------------------------------------------------------------------------------- An implicit part of the sentiment shift observed at the end of the quarter was the notion that the Fed is no longer part of the problem but rather part of the solution. In retrospect it appears that the Fed's policy responses throughout the crisis have been effective and appropriate. We appreciate the trust you have placed in our firm's quality and integrity by investing with us. It is our goal to continue to offer you innovative ETF choices to meet your investment needs. Sincerely, /s/ DAVID C. REILLY, CFA David Reilly, CFA Director of Portfolio Strategies All sources: Bloomberg 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, 2007 and held for the six months ended April 30, 2008. ACTUAL EXPENSES The first table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first table under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses attributable to your investment during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation and redemption fees, or brokerage charges. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
BEGINNING ENDING ACCOUNT ACCOUNT EXPENSES PAID VALUE VALUE DURING PERIOD* 11/1/2007 4/30/2008 11/1/07 TO 4/30/08 --------- --------- ------------------ ACTUAL Rydex S&P Equal Weight ETF............................ $1,000.00 $ 901.40 $1.89 Rydex Russell Top 50 ETF.............................. $1,000.00 $ 893.70 $0.94 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P Equal Weight ETF............................ $1,000.00 $1,022.87 $2.01 Rydex Russell Top 50 ETF.............................. $1,000.00 $1,023.87 $1.01
-------- * Expenses are equal to the Fund's annualized expense ratio of 0.40% and 0.20% respectively, multiplied by the average account value of the period, multiplied by days in the period, divided by 366. SEMI-ANNUAL REPORT 5 RYDEX S&P EQUAL WEIGHT ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ BEAR STEARNS COS., INC. 0.35% SAFECO CORP. 0.29% BROADCOM CORP. -- CLASS A 0.29% FORD MOTOR CO. 0.28% SPRINT NEXTEL CORP. 0.26% GOOGLE, INC. -- CLASS A 0.26% SANDISK CORP. 0.25% UNITED STATES STEEL CORP. 0.25% APPLE, INC. 0.25% NATIONAL-OILWELL VARCO, INC. 0.25% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 18.10 Consumer Discretionary 16.77 Information Technology 14.49 Industrials 11.48 Health Care 9.97 Energy 7.81 Consumer Staples 7.70 Utilities 6.19 Materials 5.65 Telecommunication Services 1.84
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 6 RYDEX RUSSELL TOP 50 ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 8.86% GENERAL ELECTRIC CO. 5.68% AT&T, INC. 4.03% MICROSOFT CORP. 3.96% PROCTER & GAMBLE CO. 3.57% CHEVRON CORP. 3.49% JOHNSON & JOHNSON 3.28% BANK OF AMERICA CORP. 2.81% INTERNATIONAL BUSINESS MACHINES CORP. 2.78% JPMORGAN CHASE & CO. 2.75% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 21.38 Energy 16.80 Financials 16.09 Health Care 12.73 Consumer Staples 12.68 Industrials 9.28 Telecommunication Services 6.32 Consumer Discretionary 4.72
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 7 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS 99.8% AEROSPACE & DEFENSE 2.2% Boeing Co. ..................................... 34,598 $2,935,986 General Dynamics Corp. ......................... 30,000 2,712,600 Goodrich Corp. ................................. 43,274 2,949,123 Honeywell International, Inc. .................. 47,279 2,808,373 L-3 Communications Holdings, Inc. .............. 23,860 2,659,197 Lockheed Martin Corp. .......................... 25,513 2,705,398 Northrop Grumman Corp. ......................... 32,505 2,391,393 Precision Castparts Corp. ...................... 26,714 3,140,498 Raytheon Co. ................................... 40,528 2,592,576 Rockwell Collins, Inc. ......................... 47,289 2,984,409 United Technologies Corp. ...................... 36,982 2,680,086 -------------- TOTAL AEROSPACE & DEFENSE 30,559,639 -------------- AIR FREIGHT & LOGISTICS 0.8% C.H. Robinson Worldwide, Inc. .................. 46,728 2,928,911 Expeditors International of Washington, Inc. ... 59,998 2,795,307 FedEx Corp. .................................... 29,570 2,834,876 United Parcel Service, Inc. -- Class B.......... 35,540 2,573,451 -------------- TOTAL AIR FREIGHT & LOGISTICS 11,132,545 -------------- AIRLINES 0.2% Southwest Airlines Co. ......................... 212,144 2,808,787 -------------- TOTAL AIRLINES 2,808,787 -------------- AUTO COMPONENTS 0.4% Goodyear Tire & Rubber Co.*..................... 102,284 2,739,166 Johnson Controls, Inc. ......................... 75,647 2,667,313 -------------- TOTAL AUTO COMPONENTS 5,406,479 -------------- AUTOMOBILES 0.7% Ford Motor Co.*................................. 462,077 3,816,756 General Motors Corp. ........................... 132,781 3,080,519 Harley-Davidson, Inc. .......................... 68,583 2,623,300 -------------- TOTAL AUTOMOBILES 9,520,575 -------------- BEVERAGES 1.5% Anheuser-Busch Cos., Inc. ...................... 55,424 2,726,861 Brown-Forman Corp. -- Class B................... 38,374 2,610,199 Coca-Cola Co. .................................. 42,011 2,473,188 Coca-Cola Enterprises, Inc. .................... 104,435 2,349,787 Constellation Brands, Inc. -- Class A*.......... 134,146 2,462,921 Molson Coors Brewing Co. -- Class B............. 48,732 2,672,463 Pepsi Bottling Group, Inc. ..................... 75,826 2,556,094 PepsiCo, Inc. .................................. 36,051 2,470,575 -------------- TOTAL BEVERAGES 20,322,088 -------------- BIOTECHNOLOGY 1.0% Amgen, Inc.*.................................... 64,627 2,705,932 Biogen Idec, Inc.*.............................. 43,393 2,633,521 Celgene Corp.*.................................. 44,554 2,768,586 Genzyme Corp.*.................................. 36,630 2,576,920 Gilead Sciences, Inc.*.......................... 53,289 2,758,239 -------------- TOTAL BIOTECHNOLOGY 13,443,198 -------------- BUILDING PRODUCTS 0.4% Masco Corp. .................................... 131,831 2,400,643 Trane, Inc. .................................... 56,195 2,613,629 -------------- TOTAL BUILDING PRODUCTS 5,014,272 -------------- CAPITAL MARKETS 3.5% American Capital Strategies, Ltd. .............. 71,348 2,265,299 Ameriprise Financial, Inc. ..................... 49,410 2,346,481 Bank of New York Mellon Corp. .................. 57,673 2,510,506 Bear Stearns Cos., Inc. ........................ 447,443 4,801,063 Charles Schwab Corp. ........................... 135,921 2,935,894 E*TRADE Financial Corp.*........................ 715,571 2,847,973 Federated Investors, Inc. -- Class B............ 64,339 2,154,070 Franklin Resources, Inc. ....................... 26,683 2,538,888 Goldman Sachs Group, Inc. ...................... 14,884 2,848,351 Janus Capital Group, Inc. ...................... 110,589 3,103,127 Legg Mason, Inc. ............................... 46,937 2,829,362 Lehman Brothers Holdings, Inc. ................. 58,759 2,599,498 Merrill Lynch & Co., Inc. ...................... 58,422 2,911,168 Morgan Stanley.................................. 56,397 2,740,894 Northern Trust Corp. ........................... 37,872 2,806,694 State Street Corp. ............................. 31,452 2,268,947 T. Rowe Price Group, Inc. ...................... 52,455 3,071,765 -------------- TOTAL CAPITAL MARKETS 47,579,980 -------------- CHEMICALS 2.6% Air Products & Chemicals, Inc. ................. 28,498 2,805,058 Ashland, Inc. .................................. 54,682 2,899,240 Dow Chemical Co. ............................... 69,208 2,778,701 Du Pont (E.I.) de Nemours & Co. ................ 55,885 2,733,335 Eastman Chemical Co. ........................... 41,150 3,024,525 Ecolab, Inc. ................................... 58,680 2,696,933 Hercules, Inc. ................................. 137,594 2,586,767 International Flavors & Fragrances, Inc. ....... 60,112 2,741,708 Monsanto Co. ................................... 26,144 2,980,939 PPG Industries, Inc. ........................... 43,083 2,644,004 Praxair, Inc. .................................. 31,193 2,848,233 Rohm & Haas Co. ................................ 47,922 2,561,431 Sigma-Aldrich Corp. ............................ 44,375 2,530,262 -------------- TOTAL CHEMICALS 35,831,136 -------------- COMMERCIAL BANKS 2.8% BB&T Corp. ..................................... 74,663 2,560,194 Comerica, Inc. ................................. 66,039 2,293,534 Fifth Third Bancorp............................. 112,185 2,404,125 First Horizon National Corp. ................... 153,791 1,660,943 Huntington Bancshares, Inc. .................... 235,662 2,212,866 KeyCorp......................................... 112,664 2,718,582 M&T Bank Corp. ................................. 30,500 2,843,515 Marshall & Ilsley Corp. ........................ 106,632 2,663,667 National City Corp. ............................ 254,062 1,600,591 PNC Financial Services Group, Inc. ............. 39,404 2,732,667 Regions Financial Corp. ........................ 123,168 2,699,843 SunTrust Banks, Inc. ........................... 42,699 2,380,469 U.S. Bancorp.................................... 75,215 2,549,036 Wachovia Corp. ................................. 86,980 2,535,467
See Notes to Financial Statements. SEMI-ANNUAL REPORT 8 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Wells Fargo & Co. .............................. 79,722 $2,371,730 Zions Bancorp................................... 52,605 2,438,242 -------------- TOTAL COMMERCIAL BANKS 38,665,471 -------------- COMMERCIAL SERVICES & SUPPLIES 1.8% Allied Waste Industries, Inc.*.................. 252,130 3,116,327 Avery Dennison Corp. ........................... 53,760 2,590,694 Cintas Corp. ................................... 88,728 2,627,236 Equifax, Inc. .................................. 74,854 2,864,663 Monster Worldwide, Inc.*........................ 107,578 2,617,373 Pitney Bowes, Inc. ............................. 72,122 2,604,326 R.R. Donnelley & Sons Co. ...................... 88,299 2,705,481 Robert Half International, Inc. ................ 101,259 2,399,838 Waste Management, Inc. ......................... 77,169 2,785,801 -------------- TOTAL COMMERCIAL SERVICES & SUPPLIES 24,311,739 -------------- COMMUNICATIONS EQUIPMENT 1.6% Ciena Corp.*.................................... 87,103 2,944,952 Cisco Systems, Inc.*............................ 102,474 2,627,433 Corning, Inc. .................................. 106,810 2,852,895 JDS Uniphase Corp.*............................. 193,895 2,774,638 Juniper Networks, Inc.*......................... 104,641 2,890,184 Motorola, Inc. ................................. 277,506 2,763,960 QUALCOMM, Inc. ................................. 67,213 2,902,930 Tellabs, Inc.*.................................. 452,146 2,333,073 -------------- TOTAL COMMUNICATIONS EQUIPMENT 22,090,065 -------------- COMPUTERS & PERIPHERALS 2.2% Apple, Inc.*.................................... 19,492 3,390,633 Dell, Inc.*..................................... 128,435 2,392,744 EMC Corp.*...................................... 178,325 2,746,205 Hewlett-Packard Co. ............................ 54,353 2,519,262 International Business Machines Corp. .......... 21,766 2,627,156 Lexmark International, Inc. -- Class A*......... 82,667 2,594,917 NetApp, Inc.*................................... 130,338 3,154,180 QLogic Corp.*................................... 168,365 2,687,105 SanDisk Corp.*.................................. 126,799 3,434,985 Sun Microsystems, Inc.*......................... 161,069 2,522,341 Teradata Corp.*................................. 109,894 2,339,643 -------------- TOTAL COMPUTERS & PERIPHERALS 30,409,171 -------------- CONSTRUCTION & ENGINEERING 0.5% Fluor Corp. .................................... 19,783 3,024,227 Jacobs Engineering Group, Inc.*................. 36,960 3,190,757 -------------- TOTAL CONSTRUCTION & ENGINEERING 6,214,984 -------------- CONSTRUCTION MATERIALS 0.2% Vulcan Materials Co. ........................... 39,745 2,735,251 -------------- TOTAL CONSTRUCTION MATERIALS 2,735,251 -------------- CONSUMER FINANCE 0.8% American Express Co. ........................... 58,004 2,785,352 Capital One Financial Corp. .................... 49,691 2,633,623 Discover Financial Services..................... 158,867 2,892,968 SLM Corp.*...................................... 160,023 2,965,226 -------------- TOTAL CONSUMER FINANCE 11,277,169 -------------- CONTAINERS & PACKAGING 0.8% Ball Corp. ..................................... 58,338 3,137,418 Bemis Co., Inc. ................................ 104,476 2,747,719 Pactiv Corp.*................................... 97,614 2,322,237 Sealed Air Corp. ............................... 105,387 2,665,237 -------------- TOTAL CONTAINERS & PACKAGING 10,872,611 -------------- DISTRIBUTORS 0.2% Genuine Parts Co. .............................. 63,406 2,692,219 -------------- TOTAL DISTRIBUTORS 2,692,219 -------------- DIVERSIFIED CONSUMER SERVICES 0.4% Apollo Group, Inc. -- Class A*.................. 46,253 2,354,278 H&R Block, Inc. ................................ 122,544 2,680,037 -------------- TOTAL DIVERSIFIED CONSUMER SERVICES 5,034,315 -------------- DIVERSIFIED FINANCIAL SERVICES 1.9% Bank of America Corp. .......................... 63,833 2,396,291 CIT Group, Inc. ................................ 290,400 3,162,456 Citigroup, Inc. ................................ 118,642 2,998,083 CME Group, Inc. ................................ 5,509 2,520,092 IntercontinentalExchange, Inc.*................. 20,785 3,224,793 JPMorgan Chase & Co. ........................... 58,234 2,774,850 Leucadia National Corp. ........................ 58,005 2,971,016 Moody's Corp. .................................. 73,051 2,699,965 NYSE Euronext................................... 41,898 2,769,458 -------------- TOTAL DIVERSIFIED FINANCIAL SERVICES 25,517,004 -------------- DIVERSIFIED TELECOMMUNICATION SERVICES 1.4% AT&T, Inc. ..................................... 70,257 2,719,649 CenturyTel, Inc. ............................... 76,418 2,479,764 Citizens Communications Co. .................... 241,758 2,591,646 Embarq Corp. ................................... 65,469 2,721,546 Qwest Communications International, Inc. ....... 555,784 2,867,846 Verizon Communications, Inc. ................... 72,178 2,777,409 Windstream Corp. ............................... 211,984 2,488,692 -------------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 18,646,552 -------------- ELECTRIC UTILITIES 2.6% Allegheny Energy, Inc. ......................... 52,579 2,828,750 American Electric Power Co., Inc. .............. 62,726 2,799,461 Duke Energy Corp. .............................. 142,056 2,601,045 Edison International............................ 52,751 2,752,020 Entergy Corp. .................................. 24,311 2,792,361 Exelon Corp. ................................... 31,864 2,723,735 FirstEnergy Corp. .............................. 37,012 2,799,588 FPL Group, Inc. ................................ 42,171 2,795,516 Pepco Holdings, Inc. ........................... 103,505 2,578,310 Pinnacle West Capital Corp. .................... 71,240 2,417,886 PPL Corp. ...................................... 55,354 2,658,099
See Notes to Financial Statements. SEMI-ANNUAL REPORT 9 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Progress Energy, Inc. .......................... 61,353 $2,576,212 Southern Co. ................................... 71,609 2,666,003 -------------- TOTAL ELECTRIC UTILITIES 34,988,986 -------------- ELECTRICAL EQUIPMENT 0.6% Cooper Industries, Ltd. -- Class A.............. 68,115 2,887,395 Emerson Electric Co. ........................... 51,898 2,712,189 Rockwell Automation, Inc. ...................... 47,229 2,561,229 -------------- TOTAL ELECTRICAL EQUIPMENT 8,160,813 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.8% Agilent Technologies, Inc.*..................... 87,355 2,638,995 Jabil Circuit, Inc. ............................ 216,612 2,356,739 Molex, Inc. .................................... 112,106 3,181,568 Tyco Electronics, Ltd. ......................... 79,001 2,955,427 -------------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 11,132,729 -------------- ENERGY EQUIPMENT & SERVICES 2.9% Baker Hughes, Inc. ............................. 38,216 3,090,910 BJ Services Co. ................................ 104,548 2,955,572 Cameron International Corp.*.................... 65,342 3,216,787 ENSCO International, Inc. ...................... 41,992 2,676,150 Halliburton Co. ................................ 70,329 3,228,804 Nabors Industries, Ltd.*........................ 83,282 3,126,406 National-Oilwell Varco, Inc.*................... 49,274 3,372,805 Noble Corp. .................................... 54,803 3,084,313 Rowan Cos., Inc. ............................... 69,718 2,718,305 Schlumberger, Ltd. ............................. 31,283 3,145,506 Smith International, Inc. ...................... 42,012 3,214,338 Transocean, Inc.*............................... 19,463 2,870,014 Weatherford International, Ltd.*................ 40,028 3,229,059 -------------- TOTAL ENERGY EQUIPMENT & SERVICES 39,928,969 -------------- FOOD & STAPLES RETAILING 1.8% Costco Wholesale Corp. ......................... 40,908 2,914,695 CVS Caremark Corp. ............................. 64,438 2,601,362 Kroger Co. ..................................... 100,610 2,741,623 Safeway, Inc. .................................. 87,699 2,771,288 SUPERVALU, Inc. ................................ 90,111 2,982,674 Sysco Corp. .................................... 87,297 2,668,669 Wal-Mart Stores, Inc. .......................... 48,581 2,816,726 Walgreen Co. ................................... 70,037 2,440,790 Whole Foods Market, Inc. ....................... 79,242 2,586,459 -------------- TOTAL FOOD & STAPLES RETAILING 24,524,286 -------------- FOOD PRODUCTS 2.6% Archer-Daniels-Midland Co. ..................... 62,817 2,767,717 Campbell Soup Co. .............................. 77,069 2,682,001 ConAgra Foods, Inc. ............................ 115,184 2,713,735 Dean Foods Co.*................................. 127,593 2,965,261 General Mills, Inc. ............................ 42,492 2,566,517 H.J. Heinz Co. ................................. 56,685 2,665,895 Hershey Co. .................................... 67,865 2,536,794 Kellogg Co. .................................... 49,652 2,540,693 Kraft Foods, Inc. -- Class A.................... 82,978 2,624,594 McCormick & Co., Inc. .......................... 70,159 2,651,309 Sara Lee Corp. ................................. 195,494 2,836,618 Tyson Foods, Inc. -- Class A.................... 150,785 2,683,973 Wm. Wrigley Jr. Co. ............................ 41,239 3,140,762 -------------- TOTAL FOOD PRODUCTS 35,375,869 -------------- GAS UTILITIES 0.4% Nicor, Inc. .................................... 76,569 2,689,103 Questar Corp. .................................. 47,340 2,936,500 -------------- TOTAL GAS UTILITIES 5,625,603 -------------- HEALTH CARE EQUIPMENT & SUPPLIES 2.1% Baxter International, Inc. ..................... 43,874 2,734,228 Becton, Dickinson & Co. ........................ 29,009 2,593,405 Boston Scientific Corp.*........................ 203,887 2,717,814 C.R. Bard, Inc. ................................ 25,843 2,433,635 Covidien, Ltd. ................................. 59,321 2,769,697 Hospira, Inc.*.................................. 59,130 2,433,199 Medtronic, Inc. ................................ 52,959 2,578,044 St Jude Medical, Inc.*.......................... 60,621 2,653,987 Stryker Corp. .................................. 40,577 2,630,607 Varian Medical Systems, Inc.*................... 54,892 2,573,337 Zimmer Holdings, Inc.*.......................... 32,455 2,406,863 -------------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 28,524,816 -------------- HEALTH CARE PROVIDERS & SERVICES 3.0% Aetna, Inc. .................................... 60,220 2,625,592 AmerisourceBergen Corp. ........................ 62,074 2,517,101 Cardinal Health, Inc. .......................... 49,502 2,577,569 CIGNA Corp. .................................... 64,098 2,737,626 Coventry Health Care, Inc.*..................... 60,883 2,723,297 Express Scripts, Inc.*.......................... 42,170 2,952,743 Humana, Inc.*................................... 56,664 2,707,972 Laboratory Corp. of America Holdings*........... 34,198 2,586,053 McKesson Corp. ................................. 46,918 2,445,366 Medco Health Solutions, Inc.*................... 57,396 2,843,398 Patterson Cos., Inc.*........................... 71,240 2,436,408 Quest Diagnostics, Inc. ........................ 56,866 2,853,536 Tenet Healthcare Corp.*......................... 502,145 3,213,728 UnitedHealth Group, Inc. ....................... 72,582 2,368,351 WellPoint, Inc.*................................ 55,634 2,767,791 -------------- TOTAL HEALTH CARE PROVIDERS & SERVICES 40,356,531 -------------- HEALTH CARE TECHNOLOGY 0.2% IMS Health, Inc. ............................... 120,423 2,980,469 -------------- TOTAL HEALTH CARE TECHNOLOGY 2,980,469 -------------- HOTELS, RESTAURANTS & LEISURE 1.9% Carnival Corp. ................................. 65,375 2,626,114 Darden Restaurants, Inc. ....................... 75,657 2,691,876 International Game Technology................... 58,085 2,017,873 Marriott International, Inc. -- Class A......... 75,946 2,604,948 McDonald's Corp. ............................... 46,889 2,793,646 Starbucks Corp.*................................ 143,826 2,334,296 Starwood Hotels & Resorts Worldwide, Inc. ...... 50,823 2,653,469 Wendy's International, Inc. .................... 108,290 3,140,410
See Notes to Financial Statements. SEMI-ANNUAL REPORT 10 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Wyndham Worldwide Corp. ........................ 128,879 $2,768,321 Yum! Brands, Inc. .............................. 69,005 2,807,123 -------------- TOTAL HOTELS, RESTAURANTS & LEISURE 26,438,076 -------------- HOUSEHOLD DURABLES 2.4% Black & Decker Corp. ........................... 38,804 2,546,706 Centex Corp. ................................... 108,735 2,263,863 D.R. Horton, Inc. .............................. 164,295 2,544,930 Fortune Brands, Inc. ........................... 39,165 2,648,337 Harman International Industries, Inc. .......... 58,417 2,387,503 KB HOME......................................... 105,881 2,382,322 Leggett & Platt, Inc. .......................... 166,856 2,769,810 Lennar Corp. -- Class A......................... 152,433 2,807,816 Newell Rubbermaid, Inc. ........................ 112,456 2,308,722 Pulte Homes, Inc. .............................. 184,034 2,399,803 Snap-on, Inc. .................................. 52,277 3,100,549 Stanley Works................................... 53,289 2,570,661 Whirlpool Corp. ................................ 29,669 2,159,310 -------------- TOTAL HOUSEHOLD DURABLES 32,890,332 -------------- HOUSEHOLD PRODUCTS 0.7% Clorox Co. ..................................... 45,106 2,390,618 Colgate-Palmolive Co. .......................... 33,036 2,335,645 Kimberly-Clark Corp. ........................... 39,396 2,520,950 Procter & Gamble Co. ........................... 37,272 2,499,088 -------------- TOTAL HOUSEHOLD PRODUCTS 9,746,301 -------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.6% AES Corp.*...................................... 159,368 2,766,628 Constellation Energy Group, Inc. ............... 30,311 2,565,826 Dynegy, Inc. -- Class A*........................ 333,988 2,878,977 -------------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 8,211,431 -------------- INDUSTRIAL CONGLOMERATES 0.8% 3M Co. ......................................... 32,705 2,515,014 General Electric Co. ........................... 69,045 2,257,772 Textron, Inc. .................................. 47,510 2,898,585 Tyco International, Ltd. ....................... 59,109 2,765,710 -------------- TOTAL INDUSTRIAL CONGLOMERATES 10,437,081 -------------- INSURANCE 4.8% ACE, Ltd. ...................................... 45,324 2,732,584 AFLAC, Inc. .................................... 39,967 2,664,600 Allstate Corp. ................................. 53,939 2,716,368 Ambac Financial Group, Inc. .................... 445,553 2,062,910 American International Group, Inc. ............. 58,526 2,703,901 Aon Corp. ...................................... 62,665 2,844,364 Assurant, Inc. ................................. 41,889 2,722,785 Chubb Corp. .................................... 51,746 2,740,986 Cincinnati Financial Corp. ..................... 65,979 2,368,646 Genworth Financial, Inc. -- Class A............. 112,335 2,590,445 Hartford Financial Services Group, Inc. ........ 35,368 2,520,677 Lincoln National Corp. ......................... 49,941 2,684,828 Loews Corp. .................................... 64,047 2,697,019 Marsh & McLennan Cos., Inc. .................... 101,790 2,808,386 MBIA, Inc. ..................................... 204,290 2,124,616 MetLife, Inc. .................................. 43,442 2,643,446 Principal Financial Group, Inc. ................ 47,378 2,542,304 Progressive Corp. .............................. 160,325 2,916,312 Prudential Financial, Inc. ..................... 34,757 2,631,452 SAFECO Corp. ................................... 59,438 3,966,892 Torchmark Corp. ................................ 42,531 2,753,457 Travelers Cos., Inc. ........................... 53,860 2,714,544 Unum Group...................................... 118,218 2,743,840 XL Capital, Ltd. -- Class A..................... 80,365 2,803,935 -------------- TOTAL INSURANCE 64,699,297 -------------- INTERNET & CATALOG RETAIL 0.6% Amazon.com, Inc.*............................... 35,929 2,825,097 Expedia, Inc.*.................................. 120,840 3,052,419 IAC/InterActiveCorp*............................ 124,195 2,584,498 -------------- TOTAL INTERNET & CATALOG RETAIL 8,462,014 -------------- INTERNET SOFTWARE & SERVICES 1.1% Akamai Technologies, Inc.*...................... 86,531 3,095,214 eBay, Inc.*..................................... 91,341 2,858,060 Google, Inc. -- Class A*........................ 6,040 3,468,711 VeriSign, Inc.*................................. 74,603 2,689,438 Yahoo!, Inc.*................................... 94,085 2,578,870 -------------- TOTAL INTERNET SOFTWARE & SERVICES 14,690,293 -------------- IT SERVICES 2.4% Affiliated Computer Services, Inc. -- Class A*.. 53,638 2,841,205 Automatic Data Processing, Inc. ................ 62,965 2,783,053 Cognizant Technology Solutions Corp. -- Class A*........................................... 91,838 2,961,776 Computer Sciences Corp.*........................ 63,616 2,773,021 Convergys Corp.*................................ 169,520 2,664,854 Electronic Data Systems Corp. .................. 156,737 2,909,039 Fidelity National Information Services, Inc. ... 66,861 2,411,008 Fiserv, Inc.*................................... 52,761 2,667,069 Paychex, Inc. .................................. 78,951 2,871,448 Total System Services, Inc. .................... 113,919 2,711,272 Unisys Corp.*................................... 608,034 2,529,421 Western Union Co. .............................. 116,236 2,673,428 -------------- TOTAL IT SERVICES 32,796,594 -------------- LEISURE EQUIPMENT & PRODUCTS 0.8% Brunswick Corp. ................................ 153,298 2,557,011 Eastman Kodak Co. .............................. 154,148 2,757,708 Hasbro, Inc. ................................... 93,374 3,320,379 Mattel, Inc. ................................... 121,882 2,285,287 -------------- TOTAL LEISURE EQUIPMENT & PRODUCTS 10,920,385 -------------- LIFE SCIENCES TOOLS & SERVICES 1.0% Applera Corp. -- Applied Biosystems Group....... 81,375 2,596,676 Millipore Corp.*................................ 38,354 2,688,615 PerkinElmer, Inc. .............................. 110,555 2,936,341 Thermo Electron Corp.*.......................... 47,299 2,737,193 Waters Corp.*................................... 47,732 2,933,609 -------------- TOTAL LIFE SCIENCES TOOLS & SERVICES 13,892,434 --------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 11 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) MACHINERY 2.9% Caterpillar, Inc. .............................. 34,498 $2,824,696 Cummins, Inc. .................................. 52,588 3,294,638 Danaher Corp. .................................. 33,646 2,625,061 Deere & Co. .................................... 32,434 2,726,726 Dover Corp. .................................... 62,515 3,092,617 Eaton Corp. .................................... 32,134 2,822,651 Illinois Tool Works, Inc. ...................... 53,049 2,773,932 Ingersoll-Rand Co., Ltd. -- Class A............. 59,790 2,653,480 ITT Corp. ...................................... 48,452 3,100,928 Manitowoc Co., Inc. ............................ 67,412 2,549,522 PACCAR, Inc. ................................... 55,192 2,611,686 Pall Corp. ..................................... 69,126 2,403,511 Parker-Hannifin Corp. .......................... 39,576 3,160,144 Terex Corp.*.................................... 43,693 3,044,528 -------------- TOTAL MACHINERY 39,684,120 -------------- MEDIA 3.0% CBS Corp. -- Class B............................ 112,396 2,592,976 Clear Channel Communications, Inc. ............. 76,814 2,315,942 Comcast Corp. -- Class A........................ 131,593 2,704,236 DIRECTV Group, Inc.*............................ 104,016 2,562,954 E.W. Scripps Co. -- Class A..................... 60,612 2,722,085 Gannett Co., Inc. .............................. 84,391 2,415,270 Interpublic Group of Cos., Inc.*................ 298,702 2,703,253 McGraw-Hill Cos., Inc. ......................... 69,455 2,846,961 Meredith Corp. ................................. 64,798 2,100,103 New York Times Co. -- Class A................... 132,581 2,585,330 News Corp. -- Class A........................... 137,873 2,467,927 Omnicom Group, Inc. ............................ 59,520 2,841,485 Time Warner, Inc. .............................. 179,054 2,658,952 Viacom, Inc. -- Class B*........................ 65,901 2,533,234 Walt Disney Co. ................................ 80,615 2,614,344 Washington Post Co. -- Class B.................. 3,816 2,501,770 -------------- TOTAL MEDIA 41,166,822 -------------- METALS & MINING 1.4% Alcoa, Inc. .................................... 72,774 2,531,080 Allegheny Technologies, Inc. ................... 35,389 2,435,825 Freeport-McMoRan Copper & Gold, Inc. ........... 28,868 3,283,735 Newmont Mining Corp. ........................... 54,054 2,389,727 Nucor Corp. .................................... 36,995 2,793,122 Titanium Metals Corp. .......................... 186,579 2,843,464 United States Steel Corp. ...................... 22,098 3,401,987 -------------- TOTAL METALS & MINING 19,678,940 -------------- MULTI-UTILITIES 2.6% Ameren Corp. ................................... 59,059 2,678,916 CenterPoint Energy, Inc. ....................... 180,674 2,749,858 CMS Energy Corp. ............................... 185,152 2,699,516 Consolidated Edison, Inc. ...................... 62,726 2,609,402 Dominion Resources, Inc. ....................... 63,046 2,735,566 DTE Energy Co. ................................. 65,210 2,628,615 Integrys Energy Group, Inc. .................... 56,245 2,693,573 NiSource, Inc. ................................. 145,606 2,606,347 PG&E Corp. ..................................... 69,205 2,768,200 Public Service Enterprise Group, Inc. .......... 61,405 2,696,294 Sempra Energy................................... 51,407 2,913,235 TECO Energy, Inc. .............................. 169,882 2,719,811 Xcel Energy, Inc. .............................. 127,164 2,645,011 -------------- TOTAL MULTI-UTILITIES 35,144,344 -------------- MULTILINE RETAIL 1.8% Big Lots, Inc.*................................. 119,638 3,233,815 Dillard's, Inc. -- Class A...................... 143,865 2,934,846 Family Dollar Stores, Inc. ..................... 129,740 2,776,436 J.C. Penney Co., Inc. .......................... 62,682 2,663,985 Kohl's Corp.*................................... 58,045 2,835,498 Macy's, Inc. ................................... 105,293 2,662,860 Nordstrom, Inc. ................................ 73,342 2,586,039 Sears Holdings Corp.*........................... 25,160 2,481,028 Target Corp. ................................... 49,392 2,624,197 -------------- TOTAL MULTILINE RETAIL 24,798,704 -------------- OFFICE ELECTRONICS 0.2% Xerox Corp. .................................... 169,324 2,365,456 -------------- TOTAL OFFICE ELECTRONICS 2,365,456 -------------- OIL, GAS & CONSUMABLE FUELS 4.9% Anadarko Petroleum Corp. ....................... 42,751 2,845,507 Apache Corp. ................................... 23,570 3,174,408 Chesapeake Energy Corp. ........................ 58,107 3,004,132 Chevron Corp. .................................. 30,482 2,930,844 ConocoPhillips.................................. 34,658 2,985,787 CONSOL Energy, Inc. ............................ 40,467 3,276,208 Devon Energy Corp. ............................. 26,695 3,027,213 El Paso Corp. .................................. 167,782 2,875,784 EOG Resources, Inc. ............................ 22,898 2,987,731 Exxon Mobil Corp. .............................. 29,901 2,782,886 Hess Corp. ..................................... 28,537 3,030,629 Marathon Oil Corp. ............................. 55,503 2,529,272 Murphy Oil Corp. ............................... 34,057 3,076,709 Noble Energy, Inc. ............................. 36,261 3,154,707 Occidental Petroleum Corp. ..................... 37,092 3,086,425 Peabody Energy Corp. ........................... 53,101 3,246,064 Range Resources Corp. .......................... 44,263 2,938,178 Spectra Energy Corp. ........................... 111,028 2,742,392 Sunoco, Inc. ................................... 45,767 2,124,046 Tesoro Corp. ................................... 84,203 2,116,863 Valero Energy Corp. ............................ 50,827 2,482,899 Williams Cos., Inc. ............................ 81,646 2,898,433 XTO Energy, Inc. ............................... 44,695 2,764,833 -------------- TOTAL OIL, GAS & CONSUMABLE FUELS 66,081,950 -------------- PAPER & FOREST PRODUCTS 0.6% International Paper Co. ........................ 94,182 2,464,743 MeadWestvaco Corp. ............................. 96,303 2,532,769 Weyerhaeuser Co. ............................... 40,668 2,597,872 -------------- TOTAL PAPER & FOREST PRODUCTS 7,595,384 --------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 12 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) PERSONAL PRODUCTS 0.4% Avon Products, Inc. ............................ 64,209 $2,505,435 Estee Lauder Cos., Inc -- Class A............... 57,335 2,615,050 -------------- TOTAL PERSONAL PRODUCTS 5,120,485 -------------- PHARMACEUTICALS 2.7% Abbott Laboratories............................. 46,377 2,446,387 Allergan, Inc. ................................. 45,547 2,567,484 Barr Pharmaceuticals, Inc.*..................... 54,842 2,754,714 Bristol-Myers Squibb Co. ....................... 119,291 2,620,823 Eli Lilly & Co. ................................ 51,316 2,470,352 Forest Laboratories, Inc.*...................... 65,229 2,264,099 Johnson & Johnson............................... 39,046 2,619,596 King Pharmaceuticals, Inc.*..................... 292,820 2,749,580 Merck & Co., Inc. .............................. 59,339 2,257,255 Mylan Laboratories, Inc. ....................... 228,428 3,008,397 Pfizer, Inc. ................................... 123,709 2,487,788 Schering-Plough Corp. .......................... 128,332 2,362,592 Watson Pharmaceuticals, Inc.*................... 89,440 2,776,218 Wyeth........................................... 61,925 2,753,805 -------------- TOTAL PHARMACEUTICALS 36,139,090 -------------- REAL ESTATE INVESTMENT TRUSTS (REITS) 2.8% Apartment Investment & Management Co. -- Class A............................................ 66,903 2,474,073 AvalonBay Communities, Inc. .................... 25,081 2,501,830 Boston Properties, Inc. ........................ 27,976 2,811,308 Developers Diversified Realty Corp. ............ 62,921 2,702,457 Equity Residential Properties Trust............. 62,272 2,585,534 General Growth Properties, Inc. ................ 72,744 2,979,594 HCP, Inc. ...................................... 76,204 2,720,483 Host Hotels & Resorts, Inc. .................... 161,436 2,776,699 Kimco Realty Corp. ............................. 69,473 2,772,667 Plum Creek Timber Co., Inc. .................... 62,735 2,562,097 ProLogis........................................ 43,280 2,709,761 Public Storage, Inc. ........................... 28,077 2,546,584 Simon Property Group, Inc. ..................... 27,465 2,742,655 Vornado Realty Trust............................ 30,710 2,858,794 -------------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 37,744,536 -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% CB Richard Ellis Group, Inc. -- Class A*........ 135,572 3,134,425 -------------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 3,134,425 -------------- ROAD & RAIL 1.1% Burlington Northern Santa Fe Corp. ............. 28,147 2,886,475 CSX Corp. ...................................... 47,159 2,968,659 Norfolk Southern Corp. ......................... 48,511 2,890,286 Ryder System, Inc. ............................. 41,739 2,857,869 Union Pacific Corp. ............................ 20,865 3,029,389 -------------- TOTAL ROAD & RAIL 14,632,678 -------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.8% Advanced Micro Devices, Inc.*................... 414,754 2,471,934 Altera Corp. ................................... 141,356 3,008,056 Analog Devices, Inc. ........................... 91,742 2,955,010 Applied Materials, Inc. ........................ 121,685 2,270,642 Broadcom Corp. -- Class A*...................... 151,665 3,937,223 Intel Corp. .................................... 117,958 2,625,745 KLA-Tencor Corp. ............................... 71,900 3,140,592 Linear Technology Corp. ........................ 82,719 2,891,856 LSI Logic Corp.*................................ 507,240 3,144,888 MEMC Electronic Materials, Inc.*................ 31,283 1,969,890 Microchip Technology, Inc. ..................... 76,929 2,827,141 Micron Technology, Inc.*........................ 435,161 3,359,443 National Semiconductor Corp. ................... 142,366 2,902,843 Novellus Systems, Inc.*......................... 119,901 2,621,036 NVIDIA Corp.*................................... 142,092 2,919,990 Teradyne, Inc.*................................. 212,980 2,830,504 Texas Instruments, Inc. ........................ 90,492 2,638,747 Xilinx, Inc. ................................... 106,370 2,634,785 -------------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 51,150,325 -------------- SOFTWARE 2.3% Adobe Systems, Inc.*............................ 73,945 2,757,409 Autodesk, Inc.*................................. 80,135 3,045,130 BMC Software, Inc.*............................. 78,219 2,718,893 CA, Inc. ....................................... 115,123 2,548,823 Citrix Systems, Inc.*........................... 80,135 2,624,421 Compuware Corp.*................................ 336,235 2,535,212 Electronic Arts, Inc.*.......................... 53,249 2,740,726 Intuit, Inc.*................................... 95,281 2,569,729 Microsoft Corp. ................................ 88,150 2,514,038 Novell, Inc.*................................... 424,221 2,664,108 Oracle Corp.*................................... 128,625 2,681,831 Symantec Corp.*................................. 152,442 2,625,051 -------------- TOTAL SOFTWARE 32,025,371 -------------- SPECIALTY RETAIL 3.3% Abercrombie & Fitch Co. -- Class A.............. 33,746 2,507,665 AutoNation, Inc.*............................... 167,924 2,688,463 AutoZone, Inc.*................................. 22,097 2,668,213 Bed Bath & Beyond, Inc.*........................ 82,318 2,675,335 Best Buy Co., Inc. ............................. 61,252 2,635,061 GameStop Corp. -- Class A*...................... 51,976 2,860,759 Gap, Inc. ...................................... 120,182 2,237,789 Home Depot, Inc. ............................... 92,484 2,663,539 Limited Brands, Inc. ........................... 151,803 2,811,392 Lowe's Cos., Inc. .............................. 111,996 2,821,179 Office Depot, Inc.*............................. 218,344 2,768,602 OfficeMax, Inc. ................................ 128,251 2,343,146 RadioShack Corp. ............................... 157,060 2,183,134 Sherwin-Williams Co. ........................... 47,060 2,603,359 Staples, Inc. .................................. 112,908 2,450,104 Tiffany & Co. .................................. 68,032 2,962,113 TJX Cos., Inc. ................................. 76,867 2,476,655 -------------- TOTAL SPECIALTY RETAIL 44,356,508 -------------- TEXTILES, APPAREL & LUXURY GOODS 1.2% Coach, Inc.*.................................... 87,154 3,100,068 Jones Apparel Group, Inc. ...................... 182,465 2,888,421
See Notes to Financial Statements. SEMI-ANNUAL REPORT 13 RYDEX S&P EQUAL WEIGHT ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Liz Claiborne, Inc. ............................ 136,501 $2,414,702 NIKE, Inc. -- Class B........................... 38,624 2,580,083 Polo Ralph Lauren Corp. ........................ 42,853 2,661,600 V.F. Corp. ..................................... 32,705 2,432,598 -------------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 16,077,472 -------------- THRIFTS & MORTGAGE FINANCE 1.2% Countrywide Financial Corp. .................... 465,156 2,688,602 Federal Home Loan Mortgage Corp. ............... 77,882 1,940,041 Federal National Mortgage Association........... 74,986 2,122,104 Hudson City Bancorp, Inc. ...................... 140,296 2,683,862 MGIC Investment Corp. .......................... 196,740 2,563,522 Sovereign Bancorp, Inc. ........................ 259,254 1,936,627 Washington Mutual, Inc. ........................ 250,828 3,082,676 -------------- TOTAL THRIFTS & MORTGAGE FINANCE 17,017,434 -------------- TOBACCO 0.7% Altria Group, Inc. ............................. 119,361 2,387,220 Philip Morris International, Inc.*.............. 47,815 2,440,000 Reynolds American, Inc. ........................ 42,001 2,261,754 UST, Inc. ...................................... 45,618 2,375,329 -------------- TOTAL TOBACCO 9,464,303 -------------- TRADING COMPANIES & DISTRIBUTORS 0.2% W.W. Grainger, Inc. ............................ 32,745 2,839,319 -------------- TOTAL TRADING COMPANIES & DISTRIBUTORS 2,839,319 -------------- WIRELESS TELECOMMUNICATION SERVICES 0.5% American Tower Corp. -- Class A*................ 65,080 2,825,774 Sprint Nextel Corp. ............................ 441,357 3,526,442 -------------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 6,352,216 -------------- TOTAL COMMON STOCKS (Cost $1,541,411,051) 1,357,438,441 -------------- SHORT TERM INVESTMENTS 0.2% SSgA Prime Money Market Fund.................... 2,989,177 2,989,177 -------------- TOTAL SHORT TERM INVESTMENTS (Cost $2,989,177) 2,989,177 -------------- TOTAL INVESTMENTS 100.0% (Cost $1,544,400,228) 1,360,427,618 -------------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 502,452 -------------- NET ASSETS--100.0% $1,360,930,070 ------------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 14 RYDEX RUSSELL TOP 50 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------------- COMMON STOCKS 99.6% AEROSPACE & DEFENSE 2.3% Boeing Co. ..................................... 78,720 $6,680,179 United Technologies Corp. ...................... 99,419 7,204,895 ------------ TOTAL AEROSPACE & DEFENSE 13,885,074 ------------ AIR FREIGHT & LOGISTICS 0.8% United Parcel Service, Inc. -- Class B.......... 67,120 4,860,159 ------------ TOTAL AIR FREIGHT & LOGISTICS 4,860,159 ------------ BEVERAGES 4.2% Coca-Cola Co. .................................. 230,935 13,595,144 PepsiCo, Inc. .................................. 162,848 11,159,973 ------------ TOTAL BEVERAGES 24,755,117 ------------ BIOTECHNOLOGY 1.3% Amgen, Inc.*.................................... 108,465 4,541,429 Genentech, Inc.*................................ 46,535 3,173,687 ------------ TOTAL BIOTECHNOLOGY 7,715,116 ------------ CAPITAL MARKETS 3.0% Goldman Sachs Group, Inc. ...................... 42,477 8,128,824 Merrill Lynch & Co., Inc. ...................... 87,963 4,383,196 Morgan Stanley.................................. 107,058 5,203,019 ------------ TOTAL CAPITAL MARKETS 17,715,039 ------------ COMMERCIAL BANKS 2.6% Wachovia Corp. ................................. 191,166 5,572,489 Wells Fargo & Co. .............................. 335,584 9,983,624 ------------ TOTAL COMMERCIAL BANKS 15,556,113 ------------ COMMUNICATIONS EQUIPMENT 3.8% Cisco Systems, Inc.*............................ 606,284 15,545,122 QUALCOMM, Inc. ................................. 166,630 7,196,749 ------------ TOTAL COMMUNICATIONS EQUIPMENT 22,741,871 ------------ COMPUTERS & PERIPHERALS 7.4% Apple, Inc.*.................................... 86,471 15,041,631 Hewlett-Packard Co. ............................ 267,774 12,411,325 International Business Machines Corp. .......... 136,352 16,457,686 ------------ TOTAL COMPUTERS & PERIPHERALS 43,910,642 ------------ CONSUMER FINANCE 1.0% American Express Co. ........................... 103,536 4,971,799 Discover Financial Services..................... 47,633 867,397 ------------ TOTAL CONSUMER FINANCE 5,839,196 ------------ DIVERSIFIED FINANCIAL SERVICES 7.7% Bank of America Corp. .......................... 443,670 16,655,372 Citigroup, Inc. ................................ 492,937 12,456,518 JPMorgan Chase & Co. ........................... 341,531 16,273,952 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 45,385,842 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 5.9% AT&T, Inc. ..................................... 616,399 23,860,805 Verizon Communications, Inc. ................... 290,268 11,169,513 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 35,030,318 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Tyco Electronics, Ltd. ......................... 49,552 1,853,740 ------------ TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,853,740 ------------ ENERGY EQUIPMENT & SERVICES 2.0% Schlumberger, Ltd. ............................. 117,829 $11,847,706 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 11,847,706 ------------ FOOD & STAPLES RETAILING 2.4% Wal-Mart Stores, Inc. .......................... 241,053 13,976,253 ------------ TOTAL FOOD & STAPLES RETAILING 13,976,253 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 0.4% Covidien, Ltd. ................................. 49,552 2,313,583 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,313,583 ------------ HEALTH CARE PROVIDERS & SERVICES 0.7% UnitedHealth Group, Inc. ....................... 134,512 4,389,127 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 4,389,127 ------------ HOUSEHOLD PRODUCTS 3.6% Procter & Gamble Co. ........................... 314,813 21,108,212 ------------ TOTAL HOUSEHOLD PRODUCTS 21,108,212 ------------ INDUSTRIAL CONGLOMERATES 6.1% General Electric Co. ........................... 1,028,559 33,633,879 Tyco International, Ltd. ....................... 49,552 2,318,538 ------------ TOTAL INDUSTRIAL CONGLOMERATES 35,952,417 ------------ INSURANCE 1.8% American International Group, Inc. ............. 224,091 10,353,004 ------------ TOTAL INSURANCE 10,353,004 ------------ INTERNET SOFTWARE & SERVICES 2.2% Google, Inc. -- Class A*........................ 22,932 13,169,618 ------------ TOTAL INTERNET SOFTWARE & SERVICES 13,169,618 ------------ MEDIA 3.7% Comcast Corp. -- Class A........................ 295,260 6,067,593 News Corp. -- Class A........................... 227,830 4,078,157 Time Warner, Inc. .............................. 376,746 5,594,678 Walt Disney Co. ................................ 198,113 6,424,805 ------------ TOTAL MEDIA 22,165,233 ------------ OIL, GAS & CONSUMABLE FUELS 14.7% Chevron Corp. .................................. 214,861 20,658,885 ConocoPhillips.................................. 163,400 14,076,910 Exxon Mobil Corp. .............................. 563,441 52,439,454 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 87,175,249 ------------ PHARMACEUTICALS 10.3% Abbott Laboratories............................. 153,993 8,123,131 Eli Lilly & Co. ................................ 99,308 4,780,687 Johnson & Johnson............................... 289,580 19,427,922 Merck & Co., Inc. .............................. 216,671 8,242,165 Pfizer, Inc. ................................... 701,648 14,110,141 Wyeth........................................... 134,479 5,980,281 ------------ TOTAL PHARMACEUTICALS 60,664,327 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.2% Intel Corp. .................................... 580,951 12,931,969 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 12,931,969 ------------ SOFTWARE 5.3% Microsoft Corp. ................................ 820,635 23,404,510 Oracle Corp.*................................... 385,474 8,037,133 ------------ TOTAL SOFTWARE 31,441,643 ------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 RYDEX RUSSELL TOP 50 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) SPECIALTY RETAIL 1.0% Home Depot, Inc. ............................... 197,397 $5,685,034 ------------ TOTAL SPECIALTY RETAIL 5,685,034 ------------ TOBACCO 2.5% Altria Group, Inc. ............................. 210,266 4,205,320 Philip Morris International, Inc.*.............. 210,266 10,729,874 ------------ TOTAL TOBACCO 14,935,194 ------------ WIRELESS TELECOMMUNICATION SERVICES 0.4% Sprint Nextel Corp. ............................ 281,189 2,246,700 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 2,246,700 ------------ TOTAL COMMON STOCKS (Cost $625,442,886) 589,603,496 ------------ SHORT TERM INVESTMENTS 0.3% SSgA Prime Money Market Fund.................... 1,808,576 1,808,576 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $1,808,576) 1,808,576 ------------ TOTAL INVESTMENTS 99.9% (Cost $627,251,462) 591,412,072 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 520,191 ------------ NET ASSETS--100.0% $591,932,263 ---------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 16 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX RUSSELL EQUAL TOP 50 WEIGHT ETF ETF -------------- ------------- ASSETS Investments at Market Value*............................. $1,360,427,618 $591,412,072 Cash..................................................... 10 -- Receivables: Dividends.............................................. 940,732 616,292 -------------- ------------ TOTAL ASSETS........................................ 1,361,368,360 592,028,364 -------------- ------------ LIABILITIES Payables: Accrued Management Fees................................ 438,290 96,101 -------------- ------------ TOTAL LIABILITIES................................... 438,290 96,101 -------------- ------------ NET ASSETS............................................... $1,360,930,070 $591,932,263 ============== ============ NET ASSETS CONSIST OF: Paid-in Capital.......................................... $1,563,937,709 $628,647,119 Undistributed Net Investment Income...................... 1,111,744 671,729 Accumulated Net Realized Loss on Investments............. (20,146,773) (1,547,195) Net Unrealized Depreciation on Investments............... (183,972,610) (35,839,390) -------------- ------------ NET ASSETS............................................... $1,360,930,070 $591,932,263 ============== ============ Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................................. 30,057,482 5,750,122 ============== ============ Net Asset Value, Offering Price and Repurchase Price Per Share.................................................. $ 45.28 $ 102.94 ============== ============ *Total Cost of Investments............................... $1,544,400,228 $627,251,462 ============== ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 STATEMENTS OF OPERATIONS For the Six Months Ended April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX RUSSELL EQUAL TOP 50 WEIGHT ETF ETF ------------- ------------- INVESTMENT INCOME Dividends............................................... $ 15,676,565 $ 7,343,214 ------------- ------------ Total Income......................................... 15,676,565 7,343,214 ------------- ------------ EXPENSES Management Fee.......................................... 3,077,845 608,904 ------------- ------------ Net Investment Income..................................... 12,598,720 6,734,310 ------------- ------------ REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain/(Loss) From: Investments............................................. (16,747,338) (8,895) In-kind Redemptions..................................... 56,554,889 8,750,090 ------------- ------------ Net Realized Gain.................................... 39,807,551 8,741,195 Net Change in Unrealized Depreciation on Investments...... (256,979,913) (90,015,293) ------------- ------------ Net Realized and Unrealized Loss on Investments........... (217,172,362) (81,274,098) ------------- ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS......................................... $(204,573,642) $(74,539,788) ============= ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 18 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income.......... $ 12,598,720 $ 25,817,694 $ 6,734,310 $ 10,928,752 Net Realized Gain.............. 39,807,551 236,861,135 8,741,195 27,813,824 Net Change in Unrealized Appreciation/(Depreciation) on Investments.............. (256,979,913) (60,770,241) (90,015,293) 33,495,340 -------------- --------------- ------------- ------------- Net Increase/(Decrease) in Net Assets Resulting From Operations.................. (204,573,642) 201,908,588 (74,539,788) 72,237,916 -------------- --------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.......... (12,089,503) (25,503,538) (6,752,842) (10,668,692) -------------- --------------- ------------- ------------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold...... 138,987,881 1,286,385,367 108,495,560 451,183,675 Value of Shares Reinvested..... 24,450 214,399 8,775 3,303 Value of Shares Repurchased.... (739,111,684) (1,045,109,356) (116,634,221) (195,942,838) -------------- --------------- ------------- ------------- Net Increase/(Decrease) in Net Assets Resulting From Share Transactions................ (600,099,353) 241,490,410 (8,129,886) 255,244,140 -------------- --------------- ------------- ------------- Increase/(Decrease) in Net Assets.................... (816,762,498) 417,895,460 (89,422,516) 316,813,364 NET ASSETS--BEGINNING OF PERIOD.. 2,177,692,568 1,759,797,108 681,354,779 364,541,415 -------------- --------------- ------------- ------------- NET ASSETS--END OF PERIOD(1)..... $1,360,930,070 $ 2,177,692,568 $ 591,932,263 $ 681,354,779 ============== =============== ============= ============= (1) Including Undistributed Net Investment Income.............. $ 1,111,744 $ 602,527 $ 671,729 $ 690,261 ============== =============== ============= ============= CHANGES IN SHARES OUTSTANDING: Shares Sold.................... 3,150,000 25,750,000 1,050,000 4,150,000 Shares Reinvested.............. 536 4,357 87 30 Shares Repurchased............. (16,104,000) (20,950,000) (1,150,000) (1,800,000) Shares Outstanding, Beginning of Period................... 43,010,946 38,206,589 5,850,035 3,500,005 -------------- --------------- ------------- ------------- Shares Outstanding, End of Year........................ 30,057,482 43,010,946 5,750,122 5,850,035 ============== =============== ============= =============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF ---------------------------------------------------------------------------------------------------- FOR THE PERIOD SIX MONTHS APRIL 24, 2003* ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH APRIL 30, 2008 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, (UNAUDITED) 2007 2006(1)(2) 2005(1) 2004(1) 2003(1) --------------- --------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............. $50.63 $46.06 $39.68 $35.70 $31.61 $25.26 ---------- ---------- ---------- ---------- -------- -------- Net Investment Income**............ 0.37 0.59 0.52 0.43 0.37 0.18 Net Realized and Unrealized Gain/(Loss) on Investments......... (5.36) 4.56 6.36 3.95 4.08 6.33 ---------- ---------- ---------- ---------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS.......... (4.99) 5.15 6.88 4.38 4.45 6.51 ---------- ---------- ---------- ---------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.............. (0.36) (0.58) (0.50) (0.40) (0.36) (0.16) ---------- ---------- ---------- ---------- -------- -------- NET ASSET VALUE AT END OF PERIOD........... $45.28 $50.63 $46.06 $39.68 $35.70 $31.61 ========== ========== ========== ========== ======== ======== TOTAL RETURN***....... (9.86)% 11.23% 17.42% 12.29% 14.11% 25.77% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............ $1,360,930 $2,177,693 $1,759,797 $1,071,410 $485,636 $177,135 RATIO TO AVERAGE NET ASSETS OF: Expenses.............. 0.40%**** 0.40% 0.40% 0.40% 0.40% 0.40%**** Net Investment Income.............. 1.64%**** 1.22% 1.21% 1.11% 1.09% 1.13%**** Portfolio Turnover Rate+............... 14% 25% 16% 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 distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (1) All per share information representing data prior to April 26, 2006 has been adjusted for the effect of a 4 for 1 stock split which occurred on April 26, 2006. (2) Beginning with the year ended October 31, 2006, the Fund was audited by Ernst & Young LLP. The previous periods were audited by another independent registered public accounting firm. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 20 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX RUSSELL TOP 50 ETF -------------------------------------------------------------------------- SIX MONTHS FOR THE PERIOD ENDED MAY 4, 2005* APRIL 30, 2008 YEAR ENDED YEAR ENDED THROUGH (UNAUDITED) OCTOBER 31, 2007 OCTOBER 31, 2006(1) OCTOBER 31, 2005 -------------- ---------------- ------------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............................. $116.47 $104.15 $91.39 $91.51 -------- -------- -------- -------- Net Investment Income**............... 1.15 2.15 1.92 0.79 Net Realized and Unrealized Gain/(Loss) on Investments.......... (13.52) 12.25 12.71 (0.46) -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS...... (12.37) 14.40 14.63 0.33 -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................. (1.16) (2.08) (1.87) (0.45) -------- -------- -------- -------- NET ASSET VALUE AT END OF PERIOD...... $102.94 $116.47 $104.15 $91.39 ======== ======== ======== ======== TOTAL RETURN***....................... (10.63)% 13.96% 16.18% 0.36% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............................ $591,932 $681,355 $364,541 $137,085 RATIO TO AVERAGE NET ASSETS OF: Expenses.............................. 0.20%**** 0.20% 0.20% 0.20%**** Net Investment Income................. 2.21%**** 1.96% 1.98% 1.74%**** Portfolio Turnover Rate+.............. 0% 8% 7% 1%
* The Fund commenced operations on May 4, 2005. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (1) Beginning with the year ended October 31, 2006, the Fund was audited by Ernst & Young LLP. The previous periods were audited by another independent registered public accounting firm. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2008 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2008, the Trust offers twenty three portfolios, each of which represents a separate series of beneficial interest in the Trust (each a "Fund" and collectively the "Funds"). The financial statements herein relate to the following two Funds: Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF. Rydex S&P Equal Weight ETF commenced operations on April 24, 2003 and the Rydex Russell Top 50 ETF commenced operations on May 4, 2005. The Funds' investment objective is to provide investment results that correspond generally to the performance, before fees and expenses, of an index representing publicly traded equity securities (the "Underlying Index"). Rydex S&P Equal Weight ETF tracks the S&P 500 Equal Weight Total Return Index. Rydex Russell Top 50 ETF tracks the Russell Top 50(TM )Index. The Funds seek to achieve their objective by investing in common stocks that comprise the Underlying Index. The Funds use a "replication" strategy to track the Underlying Index. "Replication" refers to investing in substantially all of the securities in the Underlying Index in approximately the same proportions as in the Underlying Index. The Funds operate as index funds and are not actively managed. Adverse performance of a security in the Funds' portfolio will ordinarily not result in the elimination of the security from the Funds' portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with 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 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. 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. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed-upon price. The repurchase price reflects an agreed-upon interest rate during the time the Fund's money is invested in the security. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. The Funds follows certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by Rydex Global Advisors, which acts as the Funds' investment advisor (the "Advisor"). In addition, the value of the collateral underlying the repurchase SEMI-ANNUAL REPORT 22 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- 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, 2008, 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 to distribute all of the taxable income and capital gains, if any, to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. 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, 2008, the Funds realized net capital gains resulting from in-kind redemptions and other transactions. Because gains from in-kind redemptions are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains are reclassified from accumulated net realized gains to paid-in-capital at the end of the Funds tax year. These reclassifications have no effect on net assets or net asset value per share. The in-kind net capital gains for the six months ended April 30, 2008 are disclosed in the Fund's Statement of Operations. At April 30, 2008, the Funds had capital loss carryforwards which may be utilized to offset any net realized capital gains expiring October 31:
2013 2014 2015 ------- -------- ------- Rydex S&P Equal Weight ETF.................................. $ -- $ -- -- Rydex Russell Top 50 ETF.................................... 88,468 675,404 618,363
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 is a non-diversified fund, subjecting it to a greater risk than a fund that is diversified. G. NEW ACCOUNTING PRONOUNCEMENTS On July 13, 2006, the Financial Accounting Standards Board ("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 Funds' 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 a more-likely-than-not threshold would be recorded as a tax 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. Management evaluated the implications of FIN 48 and determined that all tax positions meet the "more-likely than not" threshold. As a result, the financial statements have not been impacted by the adoption of FIN 48. However, management's conclusions regarding FIN 48 are subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance expected from FASB, and on-going analysis of tax laws, regulation, and interpretations thereof. SEMI-ANNUAL REPORT 23 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- In September, 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact, if any, the adoption of SFAS 157 will have on the Funds' financial statements. Management does not anticipate SFAS 157 will have a material impact on the Funds' financial statements. In March, 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact, if any, the adoption of SFAS 161 will have on the Funds' financial statement disclosures. 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 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%
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, 2008, there were an unlimited number of no par value shares of beneficial interest authorized. There is a minimum transaction fee per transaction to those persons purchasing or redeeming Creation Units. An additional charge of up to three times the standard transaction fee may be imposed for purchases and redemptions effected outside the National Securities Clearing Corporation usual clearing process or for cash. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the net asset value per unit of the Fund on the transaction date. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex S&P Equal Weight ETF......................................... $2,000 Rydex Russell Top 50 ETF........................................... 500
5. INVESTMENT TRANSACTIONS For the six months ended April 30, 2008 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS --------------- --------------- Rydex S&P Equal Weight ETF.................................. $120,874,461 $718,860,828 Rydex Russell Top 50 ETF.................................... 103,195,484 111,274,280
SEMI-ANNUAL REPORT 24 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- 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.................................. $217,595,229 $215,697,573 Rydex Russell Top 50 ETF.................................... -- 41,259
There were no purchases or sales of U.S. government or government agency obligations for the six months ended April 30, 2008. The identified cost of investments in securities owned by each Fund for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and depreciation at April 30, 2008 were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION COST APPRECIATION DEPRECIATION (DEPRECIATION) --------------- --------------- --------------- --------------- Rydex S&P Equal Weight ETF.................. $1,544,400,228 $90,008,322 $273,980,932 $(183,972,610) Rydex Russell Top 50 ETF.................... 627,251,462 33,916,697 69,756,087 (35,839,390)
6. ACQUISITION OF RYDEX INVESTMENTS AND THE DISTRIBUTOR At the close of business on January 17, 2008, Rydex NV, Inc., comprised of Rydex Investments, together with several other Rydex entities, was acquired by Security Benefit Corporation ("Security Benefit"), a financial services firm that provides a broad variety of financial programs to investors in the advisor, banking, education, government, institutional, and qualified plan markets (the "Transaction"). As a result of the Transaction's completion, Rydex Investments and the Distributor are wholly-owned subsidiaries of Security Benefit. While the Transaction has no material impact on the Funds or their shareholders, it resulted in a change of control of Rydex Investments, which in turn caused the termination of the investment advisory agreement between Rydex Investments and the Funds. A new investment advisory agreement between Rydex Investments and the Funds was approved under substantially the same terms as the previous investment advisory agreement (the "New Agreement"). This New Agreement was approved by shareholders, via proxy, and took effect upon the closing of the Transaction. The Transaction had no impact on the day-to-day operations of Rydex Investments, the fees payable to Rydex Investments under the New Agreement, or the persons responsible for the management of the Funds. SEMI-ANNUAL REPORT 25 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 26 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
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- CARL G. Rydex Series Funds - 2004 149 VERBONCOEUR* Rydex Variable Trust - 2004 Trustee, Rydex Dynamic Funds - 2004 President (1952) 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 Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and Rydex Distributors, Inc. (1997 to 2000) --------------------- MICHAEL P. Rydex Series Funds - 2005 149 BYRUM* Rydex Variable Trust - 2005 Trustee, Vice Rydex Dynamic Funds - 2005 President and Rydex ETF Trust - 2005 Secretary (1970)
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 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 Global Advisors (2004 to present); Chief Operating Officer of Rydex Global Advisors and Rydex Distributors, Inc. (2003 to 2004) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- JOHN O. DEMARET Rydex Series Funds - 1997 141 Trustee, Rydex Variable Trust - 1998 Chairman of the Rydex Dynamic Funds - 1999 Board (1940) Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------------- COREY A. Rydex Series Funds - 1993 141 COLEHOUR Rydex Variable Trust - 1998 Trustee (1945) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield Management Company --------------------- J. KENNETH Rydex Series Funds - 1995 141 DALTON Rydex Variable Trust - 1998 Trustee (1941) 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 141 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, Rydex Series Funds - 2005 141 JR. Rydex Variable Trust - 2005 Trustee (1960) Rydex Dynamic Funds - 2005 Rydex ETF Trust - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends Investments --------------------- PATRICK T. Rydex Series Funds - 1997 141 MCCARVILLE Rydex Variable Trust - 1998 Trustee (1942) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries, Inc. --------------------- ROGER SOMERS Rydex Series Funds - 1993 141 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine -------------------------------------------------------------------------------- SEMI-ANNUAL REPORT 27 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (CONT.) EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) Specialized Products, LLC (2005 to present); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Fund Services, Inc. (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice President of Accounting of Rydex Fund Services, Inc. (2000 to 2003) JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Assistant Variable Trust, (1966) and Rydex Dynamic Funds (2004 to present); Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Assistant Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Fund Services, Inc. (2000 to present); Secretary of Rydex Capital Partners SphinX Fund (2003 to 2006) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006); Vice President of Rydex Fund Services, Inc. (2004 to present); Director of Accounting of Rydex Fund Services, Inc. (2003 to 2004); Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006); Director of Fund Administration of Rydex Fund Services, Inc. (2001 to present)
* Trustees and Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the 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-0408X1008 April 30, 2008 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF RYDEX S&P MIDCAP 400 PURE VALUE ETF RYDEX S&P MIDCAP 400 PURE GROWTH ETF RYDEX S&P SMALLCAP 600 PURE VALUE ETF RYDEX S&P SMALLCAP 600 PURE GROWTH ETF RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF RYDEX S&P EQUAL WEIGHT ENERGY ETF RYDEX S&P EQUAL WEIGHT FINANCIALS ETF RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF RYDEX S&P EQUAL WEIGHT MATERIALS ETF RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF RYDEX S&P EQUAL WEIGHT UTILITIES ETF [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.................................................. 20 STATEMENTS OF ASSETS AND LIABILITIES..................................... 48 STATEMENTS OF OPERATIONS................................................. 51 STATEMENTS OF CHANGES IN NET ASSETS...................................... 54 FINANCIAL HIGHLIGHTS..................................................... 62 NOTES TO FINANCIAL STATEMENTS............................................ 70 SUPPLEMENTAL INFORMATION................................................. 75
SEMI-ANNUAL REPORT 2 -------------------------------------------------------------------------------- DEAR SHAREHOLDER, Rydex is a proud participant in the ETF space, having $6.1 million in ETF assets, 31 exchange traded products and plans to introduce many more in the future. In the last six months, we've launched six new exchange traded products and in the past year our assets have grown more than 27%. Because of their cost-effectiveness, transparency, convenience and accessibility, ETFs can be a beneficial part of most investor portfolios. However, lack of education about the products can be a barrier for many investors. For example, a Rydex survey of individual mutual fund investors in 2007 found that more than half (53%) of investors do not know the difference between a mutual fund and ETF and 38% don't know what an ETF is.(1) Rydex believes that investors need to be knowledgeable about their investment selections -- whether they choose ETFs or any other investment option. That's why we created ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help boost ETF knowledge for both advisors and their clients. ETF Essentials presents information in simple, understandable language and is available via podcast (audio downloads), print and online. It's free and can be requested on the Rydex web site (www.rydexinvestments.com). MARKET RECAP The six-month period ending April 30 was a momentous one in many respects. The U.S. financial system teetered on the brink of collapse as the ongoing crisis in the nation's credit markets seemed to threaten the solvency of many major Wall Street institutions. Indeed, financial market turmoil, the magnitude of which had not been seen in decades, led to the dramatic collapse of Bear Stearns, a powerhouse investment bank that traced its origins back to the 1920s and had successfully weathered the Great Depression. References to the Great Depression are appropriate since many of the emergency actions taken by the Fed to keep the financial system afloat during this period had their origins in that earlier crisis. The acceptance of mortgage-backed debt as collateral, and lending to non-depository institutions in particular are policies taken straight from the 1930s. Most financial crises lead to the demise of at least one major financial institution -- think of Penn Central, Continental Illinois and Long Term Capital Management -- and this one was no exception. If there is good news here, it is that collapses, such as Bear Stearns in March, usually signify the beginning of the end of a financial panic. True to form, once it was clear that other major financial institutions did not face solvency issues along the lines of Bear Stearns, stocks soared in a classic relief rally. Although there was a perceptible shift in sentiment at the tail end of the period, it was not enough to reverse what was a difficult period for stocks. The bellwether S&P 500 fell nearly 10% as investors ran to the safety of U.S. Treasury securities, pulling long-term interest rates to five-year lows in the process. The Fed slashed interest rates at the fastest pace in history, dropping the widely watched Fed Funds target rate to 2.00% from 4.50% in five sweeping moves. In this crisis environment the Fed, in conjunction with other central banks, continuously pumped hundreds of billions of dollars of liquidity into the global financial system. In fact, government at all levels was in full crisis prevention mode. Congress and the Bush administration forged a $168 billion fiscal stimulus plan with lightning speed and the nation's home lending industry, in the form of Fannie Mae and Freddie Mac, was restructured to help relieve pressure on the beleaguered housing market. Risk exposures of all types were sold indiscriminately, hitting financials, technology and consumer discretionary stocks particularly hard. Aggravated by a weakening job market, falling housing values and rising inflation, consumer sentiment levels hit multi-year lows. With all the ingredients for a recession firmly in place -- shrinking payrolls, declining retail sales, curtailed capital spending plans and falling wealth levels -- economic activity essentially crawled to a halt. The cheap U.S. dollar fueled a boom in exports, which kept economic growth just barely in the black. One outgrowth of the dollar's descent in foreign exchange markets was a corresponding rise in commodity prices. The speculative boom in commodity prices reached a frenzy, putting commodity index levels at 10-year highs. Much of that was driven by oil, the price of which rose in excess of 20% and broke the $100/bbl. level in early March. ---------- (1) Rydex Investments in conjunction with e-Rewards Market Research conducted this survey of individual investors in July 2007. The survey was conducted with 500 individual mutual fund investors. All participants had investable assets of more than $100K, with 150 of the participants having investable assets of more than $500K. e-Rewards Market Research is not affiliated with Rydex Investments. Although Rydex Investments believes the information from this organization is correct, it cannot, and does not, guarantee or warrant the completeness or suitability of this information. SEMI-ANNUAL REPORT 3 -------------------------------------------------------------------------------- An implicit part of the sentiment shift observed at the end of the quarter was the notion that the Fed is no longer part of the problem but rather part of the solution. In retrospect it appears that the Fed's policy responses throughout the crisis have been effective and appropriate. We appreciate the trust you have placed in our firm's quality and integrity by investing with us. It is our goal to continue to offer you innovative ETF choices to meet your investment needs. Sincerely, /s/ DAVID C. REILLY, CFA David C. Reilly, CFA Director of Portfolio Strategies 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, 2007 and held for the six months ended April 30, 2008. ACTUAL EXPENSES The first table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first table under the heading entitled "Expenses Paid During the Six-Month Period" to estimate the expenses attributable to your investment during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation and redemption fees, or brokerage charges. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID ACCOUNT ACCOUNT DURING VALUE VALUE SIX-MONTH PERIOD * 11/1/2007 4/30/2008 11/1/07 TO 4/30/08 --------- --------- ------------------ ACTUAL Rydex S&P 500 Pure Value ETF.......................... $1,000.00 $ 846.40 $1.61 Rydex S&P 500 Pure Growth ETF......................... $1,000.00 $ 926.70 $1.68 Rydex S&P MidCap 400 Pure Value ETF................... $1,000.00 $ 906.20 $1.66 Rydex S&P MidCap 400 Pure Growth ETF.................. $1,000.00 $ 923.10 $1.67 Rydex S&P SmallCap 600 Pure Value ETF................. $1,000.00 $ 852.40 $1.61 Rydex S&P SmallCap 600 Pure Growth ETF................ $1,000.00 $ 859.30 $1.62 Rydex S&P Equal Weight Consumer Discretionary ETF..... $1,000.00 $ 868.20 $2.32 Rydex S&P Equal Weight Consumer Staples ETF........... $1,000.00 $ 961.10 $2.44 Rydex S&P Equal Weight Energy ETF..................... $1,000.00 $1,091.10 $2.60 Rydex S&P Equal Weight Financials ETF................. $1,000.00 $ 805.20 $2.24 Rydex S&P Equal Weight Health Care ETF................ $1,000.00 $ 915.50 $2.38 Rydex S&P Equal Weight Industrials ETF................ $1,000.00 $ 973.90 $2.45 Rydex S&P Equal Weight Materials ETF.................. $1,000.00 $ 941.00 $2.41 Rydex S&P Equal Weight Technology ETF................. $1,000.00 $ 854.70 $2.31 Rydex S&P Equal Weight Utilities ETF.................. $1,000.00 $ 907.00 $2.37 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P 500 Pure Value ETF.......................... $1,000.00 $1,023.12 $1.76 Rydex S&P 500 Pure Growth ETF......................... $1,000.00 $1,023.12 $1.76 Rydex S&P MidCap 400 Pure Value ETF................... $1,000.00 $1,023.12 $1.76 Rydex S&P MidCap 400 Pure Growth ETF.................. $1,000.00 $1,023.12 $1.76 Rydex S&P SmallCap 600 Pure Value ETF................. $1,000.00 $1,023.12 $1.76 Rydex S&P SmallCap 600 Pure Growth ETF................ $1,000.00 $1,023.12 $1.76 Rydex S&P Equal Weight Consumer Discretionary ETF..... $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Consumer Staples ETF........... $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Energy ETF..................... $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Financials ETF................. $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Health Care ETF................ $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Industrials ETF................ $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Materials ETF.................. $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Technology ETF................. $1,000.00 $1,022.38 $2.51 Rydex S&P Equal Weight Utilities ETF.................. $1,000.00 $1,022.38 $2.51
-------- * Expenses are equal to the Fund's annualized expense ratio of 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 366. SEMI-ANNUAL REPORT 5 Rydex S&P 500 Pure Value ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ D.R. HORTON, INC. 2.66% KB HOME 2.49% LENNAR CORP. -- CLASS A 2.37% DILLARD'S, INC. -- CLASS A 2.28% SPECTRA ENERGY CORP. 1.92% OFFICEMAX, INC. 1.82% TYSON FOODS, INC. -- CLASS A 1.71% WASHINGTON MUTUAL, INC. 1.71% RYDER SYSTEM, INC. 1.61% JONES APPAREL GROUP, INC. 1.59% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 33.35 Consumer Discretionary 27.60 Utilities 14.17 Industrials 4.71 Consumer Staples 4.57 Materials 4.48 Health Care 3.75 Telecommunication Services 3.09 Information Technology 2.35 Energy 1.93
* 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 S&P 500 Pure Growth ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ UNITED STATES STEEL CORP. 1.55% COACH, INC. 1.40% XTO ENERGY, INC. 1.31% CB RICHARD ELLIS GROUP, INC. -- CLASS A 1.31% SEARS HOLDINGS CORP. 1.31% NUCOR CORP. 1.29% EOG RESOURCES, INC. 1.21% YAHOO!, INC. 1.20% GOOGLE, INC. -- CLASS A 1.17% ZIMMER HOLDINGS, INC. 1.15% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 19.20 Information Technology 17.67 Health Care 15.97 Energy 13.67 Financials 9.19 Industrials 8.89 Consumer Staples 7.04 Materials 6.80 Utilities 1.57
* 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 Midcap 400 Pure Value ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ ARVINMERITOR, INC. 3.26% FURNITURE BRANDS INTERNATIONAL, INC. 3.03% KELLY SERVICES, INC. 2.24% FIDELITY NATIONAL FINANCIAL, INC. -- CLASS A 2.17% RYLAND GROUP, INC. 2.10% YRC WORLDWIDE, INC. 2.00% CHARMING SHOPPES, INC. 1.74% AVIS BUDGET GROUP, INC. 1.72% IMATION CORP. 1.71% HEALTH MANAGEMENT ASSOCIATES, INC. -- CLASS A 1.62% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 29.83 Consumer Discretionary 24.56 Industrials 12.98 Utilities 12.75 Information Technology 6.94 Materials 6.90 Health Care 3.39 Consumer Staples 2.65
* 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 MIDCAP 400 PURE GROWTH ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ ENCORE ACQUISITION CO. 2.51% CLEVELAND-CLIFFS, INC. 2.42% AEROPOSTALE, INC. 1.89% PSYCHIATRIC SOLUTIONS, INC. 1.87% NVR, INC. 1.86% DIGITAL RIVER, INC. 1.76% STEEL DYNAMICS, INC. 1.76% URBAN OUTFITTERS, INC. 1.67% JOY GLOBAL, INC. 1.65% CIMAREX ENERGY CO. 1.63% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 26.51 Health Care 19.65 Information Technology 16.00 Industrials 11.07 Energy 10.20 Materials 7.59 Financials 5.20 Consumer Staples 3.78
* 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 SMALLCAP 600 PURE VALUE ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ FINISH LINE, INC. -- CLASS A 2.91% STEIN MART, INC. 1.71% BASSETT FURNITURE INDUSTRIES, INC. 1.70% ARKANSAS BEST CORP. 1.66% WABASH NATIONAL CORP. 1.52% M/I HOMES, INC. 1.42% FIRST BANCORP 1.42% LANDAMERICA FINANCIAL GROUP, INC. 1.36% STEWART INFORMATION SERVICES CORP. 1.34% GEVITY HR, INC. 1.30% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 30.28 Financials 29.06 Industrials 13.51 Materials 7.50 Utilities 6.92 Information Technology 6.17 Consumer Staples 5.01 Health Care 1.55
* 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 SMALLCAP 600 PURE GROWTH ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ LIFECELL CORP. 1.50% BANKRATE, INC. 1.45% HEALTHEXTRAS, INC. 1.42% MARTEK BIOSCIENCES CORP. 1.40% BASIC ENERGY SERVICES, INC. 1.36% MANNATECH, INC. 1.32% J2 GLOBAL COMMUNICATIONS, INC. 1.30% PANERA BREAD CO. -- CLASS A 1.27% UNIT CORP. 1.27% WRIGHT EXPRESS CORP. 1.27% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 25.55 Information Technology 23.77 Health Care 18.69 Energy 10.22 Financials 8.42 Industrials 7.31 Consumer Staples 3.12 Materials 2.92
* 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 Equal Weight Consumer Discretionary ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ FORD MOTOR CO. 1.67% HASBRO, INC. 1.44% BIG LOTS, INC. 1.42% WENDY'S INTERNATIONAL, INC. 1.36% COACH, INC. 1.36% SNAP-ON, INC. 1.35% GENERAL MOTORS CORP. 1.34% EXPEDIA, INC. 1.34% TIFFANY & CO. 1.30% DILLARD'S, INC. -- CLASS A 1.30% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Specialty Retail 19.38 Media 17.87 Household Durables 14.56 Hotels, Restaurants & Leisure 11.61 Multiline Retail 10.98 Textiles, Apparel & Luxury Goods 7.05 Leisure Equipment & Products 4.81 Automobiles 4.18 Internet & Catalog Retail 3.74 Auto Components 2.40 Diversified Consumer Services 2.25 Distributors 1.17
* 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 12 Rydex S&P Equal Weight Consumer Staples ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ WM. WRIGLEY JR. CO. 2.99% SUPERVALU, INC. 2.84% DEAN FOODS CO. 2.83% COSTCO WHOLESALE CORP. 2.78% SARA LEE CORP. 2.70% WAL-MART STORES, INC. 2.69% SAFEWAY, INC. 2.64% ARCHER-DANIELS-MIDLAND CO. 2.64% KROGER CO. 2.61% ANHEUSER-BUSCH COS., INC. 2.60% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Food Products 33.85 Food & Staples Retailing 23.46 Beverages 19.45 Household Products 9.32 Tobacco 9.02 Personal Products 4.90
* 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 13 Rydex S&P Equal Weight Energy ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ NATIONAL-OILWELL VARCO, INC. 3.16% CONSOL ENERGY, INC. 3.09% PEABODY ENERGY CORP. 3.04% WEATHERFORD INTERNATIONAL, LTD. 3.03% HALLIBURTON CO. 3.03% CAMERON INTERNATIONAL CORP. 3.01% SMITH INTERNATIONAL, INC. 3.01% APACHE CORP. 2.98% NOBLE ENERGY, INC. 2.97% SCHLUMBERGER, LTD. 2.94% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Oil, Gas & Consumable Fuels 62.42 Energy Equipment & Services 37.58
* 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 Financials ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ BEAR STEARNS COS., INC. 1.95% SAFECO CORP. 1.61% INTERCONTINENTALEXCHANGE, INC. 1.31% CIT GROUP, INC. 1.29% CB RICHARD ELLIS GROUP, INC. -- CLASS A 1.28% JANUS CAPITAL GROUP, INC. 1.26% WASHINGTON MUTUAL, INC. 1.26% T. ROWE PRICE GROUP, INC. 1.25% CITIGROUP, INC. 1.22% GENERAL GROWTH PROPERTIES, INC. 1.21% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Insurance 26.33 Capital Markets 19.39 Commercial Banks 15.74 Real Estate Investment Trusts (REITs) 15.38 Diversified Financial Services 10.36 Thrifts & Mortgage Finance 6.93 Consumer Finance 4.59 Real Estate Management & Development 1.28
* 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 Health Care ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ TENET HEALTHCARE CORP. 2.34% MYLAN LABORATORIES, INC. 2.24% IMS HEALTH, INC. 2.21% WATERS CORP. 2.20% EXPRESS SCRIPTS, INC. 2.17% PERKINELMER, INC. 2.17% QUEST DIAGNOSTICS, INC. 2.11% MEDCO HEALTH SOLUTIONS, INC. 2.10% COVIDIEN, LTD. 2.06% WELLPOINT, INC. 2.06% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Health Care Providers & Services 29.78 Pharmaceuticals 26.71 Health Care Equipment & Supplies 21.12 Life Sciences Tools & Services 10.29 Biotechnology 9.89 Health Care Technology 2.21
* 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 Industrials ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CUMMINS, INC. 2.11% JACOBS ENGINEERING GROUP, INC. 2.04% PARKER-HANNIFIN CORP. 2.02% PRECISION CASTPARTS CORP. 2.01% ALLIED WASTE INDUSTRIES, INC. 1.99% ITT CORP. 1.98% DOVER CORP. 1.98% TEREX CORP. 1.94% UNION PACIFIC CORP. 1.94% FLUOR CORP. 1.93% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Machinery 25.47 Aerospace & Defense 19.61 Commercial Services & Supplies 15.61 Road & Rail 9.39 Air Freight & Logistics 7.16 Industrial Conglomerates 6.69 Electrical Equipment 5.24 Construction & Engineering 3.99 Building Products 3.22 Trading Companies & Distributors 1.82 Airlines 1.80
* 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 Materials ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ UNITED STATES STEEL CORP. 4.38% BALL CORP. 4.15% FREEPORT-MCMORAN COPPER & GOLD, INC. 4.13% EASTMAN CHEMICAL CO. 3.88% TITANIUM METALS CORP. 3.84% MONSANTO CO. 3.84% ASHLAND, INC. 3.80% VULCAN MATERIALS CO. 3.75% AIR PRODUCTS & CHEMICALS, INC. 3.72% PRAXAIR, INC. 3.72% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Chemicals 46.51 Metals & Mining 25.47 Containers & Packaging 14.36 Paper & Forest Products 9.90 Construction Materials 3.76
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 18 Rydex S&P Equal Weight Technology ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ BROADCOM CORP. -- CLASS A 2.00% GOOGLE, INC. -- CLASS A 1.76% SANDISK CORP. 1.75% APPLE, INC. 1.72% MICRON TECHNOLOGY, INC. 1.71% MOLEX, INC. 1.62% NETAPP, INC. 1.60% LSI LOGIC CORP. 1.60% KLA-TENCOR CORP. 1.60% AKAMAI TECHNOLOGIES, INC. 1.58% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Semiconductors & Semiconductor Equipment 26.00 IT Services 16.69 Software 16.28 Computers & Peripherals 15.46 Communications Equipment 11.23 Internet Software & Services 7.48 Electronic Equipment & Instruments 5.66 Office Electronics 1.20
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 19 Rydex S&P Equal Weight Utilities ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SPRINT NEXTEL CORP. 3.23% QUESTAR CORP. 2.69% SEMPRA ENERGY 2.67% DYNEGY, INC. -- CLASS A 2.63% QWEST COMMUNICATIONS INTERNATIONAL, INC. 2.63% ALLEGHENY ENERGY, INC. 2.59% AMERICAN TOWER CORP. -- CLASS A 2.59% FIRSTENERGY CORP. 2.57% AMERICAN ELECTRIC POWER CO., INC. 2.57% FPL GROUP, INC. 2.56% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Electric Utilities 34.59 Multi-Utilities 29.78 Diversified Telecommunication Services 17.11 Independent Power Producers & Energy Traders 7.53 Wireless Telecommunication Services 5.83 Gas Utilities 5.16
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 20 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.8% AEROSPACE & DEFENSE 0.3% Northrop Grumman Corp. ......................... 1,110 $81,663 ----------- TOTAL AEROSPACE & DEFENSE 81,663 ----------- AUTOMOBILES 1.1% Ford Motor Co.*................................. 35,188 290,653 ----------- TOTAL AUTOMOBILES 290,653 ----------- BUILDING PRODUCTS 0.7% Masco Corp. .................................... 10,846 197,506 ----------- TOTAL BUILDING PRODUCTS 197,506 ----------- CAPITAL MARKETS 3.8% American Capital Strategies, Ltd. .............. 6,758 214,567 Bear Stearns Cos., Inc. ........................ 2,399 25,741 E*TRADE Financial Corp.*........................ 99,853 397,415 Lehman Brothers Holdings, Inc. ................. 1,490 65,918 Merrill Lynch & Co., Inc. ...................... 2,659 132,498 Morgan Stanley.................................. 3,859 187,547 ----------- TOTAL CAPITAL MARKETS 1,023,686 ----------- CHEMICALS 1.9% Ashland, Inc. .................................. 6,318 334,980 Dow Chemical Co. ............................... 4,638 186,216 ----------- TOTAL CHEMICALS 521,196 ----------- COMMERCIAL BANKS 10.9% BB&T Corp. ..................................... 6,678 228,989 Comerica, Inc. ................................. 6,068 210,742 Fifth Third Bancorp............................. 7,507 160,875 First Horizon National Corp. ................... 18,933 204,476 Huntington Bancshares, Inc. .................... 19,840 186,298 KeyCorp......................................... 12,477 301,070 M&T Bank Corp. ................................. 1,330 123,996 Marshall & Ilsley Corp. ........................ 8,067 201,514 National City Corp. ............................ 24,055 151,546 PNC Financial Services Group, Inc. ............. 1,379 95,634 Regions Financial Corp. ........................ 12,796 280,488 SunTrust Banks, Inc. ........................... 2,909 162,177 U.S. Bancorp.................................... 4,078 138,203 Wachovia Corp. ................................. 7,628 222,356 Wells Fargo & Co. .............................. 3,828 113,883 Zions Bancorp................................... 3,709 171,912 ----------- TOTAL COMMERCIAL BANKS 2,954,159 ----------- COMMERCIAL SERVICES & SUPPLIES 1.3% Allied Waste Industries, Inc.*.................. 12,825 158,517 Avery Dennison Corp. ........................... 1,759 84,766 R.R. Donnelley & Sons Co. ...................... 3,589 109,967 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 353,250 ----------- CONSUMER FINANCE 0.5% Capital One Financial Corp. .................... 2,729 144,637 ----------- TOTAL CONSUMER FINANCE 144,637 ----------- CONTAINERS & PACKAGING 0.6% Bemis Co., Inc. ................................ 6,148 161,692 ----------- TOTAL CONTAINERS & PACKAGING 161,692 ----------- DIVERSIFIED FINANCIAL SERVICES 3.2% Bank of America Corp. .......................... 5,838 219,159 CIT Group, Inc. ................................ 19,943 217,179 Citigroup, Inc. ................................ 9,337 235,946 JPMorgan Chase & Co. ........................... 4,118 196,223 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 868,507 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 2.6% AT&T, Inc. ..................................... 2,789 107,962 Citizens Communications Co. .................... 14,235 152,599 Embarq Corp. ................................... 3,819 158,756 Verizon Communications, Inc. ................... 4,058 156,152 Windstream Corp. ............................... 10,526 123,575 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 699,044 ----------- ELECTRIC UTILITIES 4.5% American Electric Power Co., Inc. .............. 2,949 131,614 Duke Energy Corp. .............................. 14,435 264,305 Pepco Holdings, Inc. ........................... 8,767 218,386 Pinnacle West Capital Corp. .................... 7,077 240,193 Progress Energy, Inc. .......................... 5,778 242,618 Southern Co. ................................... 3,629 135,108 ----------- TOTAL ELECTRIC UTILITIES 1,232,224 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.8% Jabil Circuit, Inc. ............................ 20,072 218,383 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 218,383 ----------- FOOD & STAPLES RETAILING 2.0% Kroger Co. ..................................... 5,178 141,101 Safeway, Inc. .................................. 3,009 95,084 SUPERVALU, Inc. ................................ 9,117 301,773 ----------- TOTAL FOOD & STAPLES RETAILING 537,958 ----------- FOOD PRODUCTS 2.2% Dean Foods Co. ................................. 6,038 140,323 Tyson Foods, Inc. -- Class A.................... 26,141 465,310 ----------- TOTAL FOOD PRODUCTS 605,633 ----------- GAS UTILITIES 0.7% Nicor, Inc. .................................... 5,798 203,626 ----------- TOTAL GAS UTILITIES 203,626 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 0.5% Covidien, Ltd. ................................. 2,719 126,950 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 126,950 ----------- HEALTH CARE PROVIDERS & SERVICES 2.8% AmerisourceBergen Corp. ........................ 8,077 327,522 Cardinal Health, Inc. .......................... 2,509 130,644
See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) McKesson Corp. ................................. 2,709 $141,193 Tenet Healthcare Corp.*......................... 27,090 173,376 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 772,735 ----------- HOTELS, RESTAURANTS & LEISURE 0.3% Carnival Corp. ................................. 2,109 84,719 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 84,719 ----------- HOUSEHOLD DURABLES 10.3% Centex Corp. ................................... 14,695 305,950 D.R. Horton, Inc. .............................. 46,684 723,135 KB HOME......................................... 30,110 677,475 Leggett & Platt, Inc. .......................... 12,985 215,551 Lennar Corp. -- Class A......................... 34,998 644,663 Whirlpool Corp. ................................ 3,109 226,273 ----------- TOTAL HOUSEHOLD DURABLES 2,793,047 ----------- INDUSTRIAL CONGLOMERATES 0.8% Tyco International, Ltd. ....................... 4,448 208,122 ----------- TOTAL INDUSTRIAL CONGLOMERATES 208,122 ----------- INSURANCE 6.6% ACE, Ltd. ...................................... 1,940 116,963 Allstate Corp. ................................. 4,888 246,160 Ambac Financial Group, Inc. .................... 11,196 51,838 Chubb Corp. .................................... 1,719 91,055 Cincinnati Financial Corp. ..................... 4,818 172,966 Genworth Financial, Inc. -- Class A............. 7,037 162,273 Hartford Financial Services Group, Inc. ........ 1,549 110,397 Lincoln National Corp. ......................... 2,419 130,045 Marsh & McLennan Cos., Inc. .................... 6,488 179,004 MBIA, Inc. ..................................... 16,734 174,034 Travelers Cos., Inc. ........................... 3,808 191,923 XL Capital, Ltd. -- Class A..................... 5,188 181,009 ----------- TOTAL INSURANCE 1,807,667 ----------- IT SERVICES 0.8% Electronic Data Systems Corp. .................. 11,616 215,593 ----------- TOTAL IT SERVICES 215,593 ----------- LEISURE EQUIPMENT & PRODUCTS 2.0% Brunswick Corp. ................................ 20,103 335,318 Eastman Kodak Co. .............................. 7,317 130,901 Mattel, Inc. ................................... 4,788 89,775 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 555,994 ----------- MEDIA 3.3% CBS Corp. -- Class B............................ 9,287 214,251 Gannett Co., Inc. .............................. 8,657 247,763 New York Times Co. -- Class A................... 16,324 318,318 Time Warner, Inc. .............................. 7,597 112,816 ----------- TOTAL MEDIA 893,148 ----------- MULTI-UTILITIES 8.9% Ameren Corp. ................................... 3,869 175,498 CenterPoint Energy, Inc. ....................... 9,766 148,638 CMS Energy Corp. ............................... 8,017 116,888 Consolidated Edison, Inc. ...................... 5,518 229,549 Dominion Resources, Inc. ....................... 2,259 98,018 DTE Energy Co. ................................. 7,487 301,801 Integrys Energy Group, Inc. .................... 8,367 400,696 NiSource, Inc. ................................. 21,982 393,478 PG&E Corp. ..................................... 3,019 120,760 TECO Energy, Inc. .............................. 14,474 231,729 Xcel Energy, Inc. .............................. 9,367 194,833 ----------- TOTAL MULTI-UTILITIES 2,411,888 ----------- MULTILINE RETAIL 4.1% Big Lots, Inc.*................................. 5,718 154,557 Dillard's, Inc. -- Class A...................... 30,349 619,120 J.C. Penney Co., Inc. .......................... 2,939 124,907 Macy's Inc. .................................... 8,627 218,177 ----------- TOTAL MULTILINE RETAIL 1,116,761 ----------- OIL, GAS & CONSUMABLE FUELS 1.9% Spectra Energy Corp. ........................... 21,163 522,726 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 522,726 ----------- PAPER & FOREST PRODUCTS 2.0% International Paper Co. ........................ 7,867 205,879 MeadWestvaco Corp. ............................. 3,809 100,177 Weyerhaeuser Co. ............................... 3,579 228,627 ----------- TOTAL PAPER & FOREST PRODUCTS 534,683 ----------- PHARMACEUTICALS 0.4% Pfizer, Inc. ................................... 5,838 117,402 ----------- TOTAL PHARMACEUTICALS 117,402 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 3.6% Apartment Investment & Management Co. -- Class A............................................ 6,250 231,125 Developers Diversified Realty Corp. ............ 3,659 157,154 Equity Residential Properties Trust............. 4,818 200,043 General Growth Properties, Inc. ................ 2,559 104,817 HCP, Inc. ...................................... 4,541 162,114 Host Hotels & Resorts, Inc. .................... 7,787 133,936 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 989,189 ----------- ROAD & RAIL 1.6% Ryder System, Inc. ............................. 6,388 437,386 ----------- TOTAL ROAD & RAIL 437,386 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.8% Micron Technology, Inc.*........................ 26,600 205,352 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 205,352 ----------- SPECIALTY RETAIL 4.5% AutoNation, Inc.*............................... 25,991 416,116 Limited Brands, Inc. ........................... 7,607 140,881
See Notes to Financial Statements. SEMI-ANNUAL REPORT 22 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Office Depot, Inc.*............................. 12,985 $164,650 OfficeMax, Inc. ................................ 27,040 494,021 ----------- TOTAL SPECIALTY RETAIL 1,215,668 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.0% Jones Apparel Group, Inc. ...................... 27,370 433,267 Liz Claiborne, Inc. ............................ 6,228 110,173 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 543,440 ----------- THRIFTS & MORTGAGE FINANCE 4.6% Countrywide Financial Corp. .................... 46,794 270,469 Federal Home Loan Mortgage Corp. ............... 14,335 357,085 Sovereign Bancorp, Inc. ........................ 23,132 172,796 Washington Mutual, Inc. ........................ 37,837 465,017 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 1,265,367 ----------- TOBACCO 0.4% Reynolds American, Inc. ........................ 1,820 98,007 ----------- TOTAL TOBACCO 98,007 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.5% Sprint Nextel Corp. ............................ 17,364 138,738 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 138,738 ----------- TOTAL COMMON STOCKS (Cost $32,933,545) 27,148,399 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 19,708 19,708 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $19,708) 19,708 ----------- TOTAL INVESTMENTS 99.9% (Cost $32,953,253) 27,168,107 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 24,946 ----------- NET ASSETS--100.0% $27,193,053 ------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.3% AEROSPACE & DEFENSE 2.2% General Dynamics Corp. ......................... 2,670 $241,421 L-3 Communications Holdings, Inc. .............. 2,690 299,801 Lockheed Martin Corp. .......................... 2,690 285,248 Rockwell Collins, Inc. ......................... 4,421 279,009 ----------- TOTAL AEROSPACE & DEFENSE 1,105,479 ----------- AIR FREIGHT & LOGISTICS 1.3% C.H. Robinson Worldwide, Inc. .................. 4,780 299,611 Expeditors International of Washington, Inc. ... 7,631 355,528 ----------- TOTAL AIR FREIGHT & LOGISTICS 655,139 ----------- AUTO COMPONENTS 0.9% Goodyear Tire & Rubber Co.*..................... 16,221 434,398 ----------- TOTAL AUTO COMPONENTS 434,398 ----------- AUTOMOBILES 0.7% Harley-Davidson, Inc. .......................... 8,691 332,431 ----------- TOTAL AUTOMOBILES 332,431 ----------- BEVERAGES 1.6% Anheuser-Busch Cos., Inc. ...................... 6,270 308,484 Pepsi Bottling Group, Inc. ..................... 8,021 270,388 PepsiCo, Inc. .................................. 3,100 212,443 ----------- TOTAL BEVERAGES 791,315 ----------- BIOTECHNOLOGY 3.2% Amgen, Inc.*.................................... 7,421 310,717 Biogen Idec, Inc.*.............................. 5,440 330,154 Celgene Corp.*.................................. 5,300 329,342 Genzyme Corp.*.................................. 2,630 185,020 Gilead Sciences, Inc.*.......................... 8,071 417,755 ----------- TOTAL BIOTECHNOLOGY 1,572,988 ----------- BUILDING PRODUCTS 0.7% Trane, Inc. .................................... 7,310 339,988 ----------- TOTAL BUILDING PRODUCTS 339,988 ----------- CAPITAL MARKETS 0.9% Federated Investors, Inc. -- Class B............ 8,121 271,891 Franklin Resources, Inc. ....................... 1,870 177,931 ----------- TOTAL CAPITAL MARKETS 449,822 ----------- CHEMICALS 0.9% Ecolab, Inc. ................................... 4,701 216,058 Sigma-Aldrich Corp. ............................ 4,200 239,484 ----------- TOTAL CHEMICALS 455,542 ----------- COMMERCIAL SERVICES & SUPPLIES 1.0% Equifax, Inc. .................................. 5,820 222,731 Pitney Bowes, Inc. ............................. 7,080 255,659 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 478,390 ----------- COMMUNICATIONS EQUIPMENT 1.8% Cisco Systems, Inc.*............................ 12,181 312,321 Motorola, Inc. ................................. 22,132 220,434 QUALCOMM, Inc. ................................. 8,431 364,135 ----------- TOTAL COMMUNICATIONS EQUIPMENT 896,890 ----------- COMPUTERS & PERIPHERALS 3.8% Apple, Inc.*.................................... 2,380 414,001 Dell, Inc.*..................................... 17,921 333,868 Lexmark International, Inc. -- Class A*......... 10,231 321,151 NetApp, Inc.*................................... 10,851 262,594 QLogic Corp.*................................... 14,591 232,873 SanDisk Corp.*.................................. 11,391 308,582 ----------- TOTAL COMPUTERS & PERIPHERALS 1,873,069 ----------- CONSTRUCTION & ENGINEERING 0.3% Jacobs Engineering Group, Inc.*................. 1,630 140,718 ----------- TOTAL CONSTRUCTION & ENGINEERING 140,718 ----------- CONSUMER FINANCE 1.2% American Express Co. ........................... 4,000 192,080 SLM Corp.*...................................... 21,482 398,061 ----------- TOTAL CONSUMER FINANCE 590,141 ----------- CONTAINERS & PACKAGING 1.4% Ball Corp. ..................................... 9,371 503,973 Pactiv Corp.*................................... 7,080 168,433 ----------- TOTAL CONTAINERS & PACKAGING 672,406 ----------- DIVERSIFIED CONSUMER SERVICES 1.6% Apollo Group, Inc. -- Class A*.................. 7,631 388,418 H&R Block, Inc. ................................ 17,591 384,715 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 773,133 ----------- DIVERSIFIED FINANCIAL SERVICES 3.7% CME Group, Inc. ................................ 630 288,194 IntercontinentalExchange, Inc.*................. 3,210 498,031 Leucadia National Corp. ........................ 7,670 392,857 Moody's Corp. .................................. 14,511 536,327 NYSE Euronext................................... 2,010 132,861 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 1,848,270 ----------- ELECTRICAL EQUIPMENT 0.3% Rockwell Automation, Inc. ...................... 2,920 158,352 ----------- TOTAL ELECTRICAL EQUIPMENT 158,352 ----------- ENERGY EQUIPMENT & SERVICES 4.1% Baker Hughes, Inc. ............................. 2,150 173,892 BJ Services Co. ................................ 11,921 337,007 Cameron International Corp.*.................... 3,260 160,490 Halliburton Co. ................................ 8,051 369,621 Schlumberger, Ltd. ............................. 4,000 402,200 Smith International, Inc. ...................... 3,300 252,483 Transocean, Inc.*............................... 2,320 342,107 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 2,037,800 ----------- FOOD PRODUCTS 2.3% Campbell Soup Co. .............................. 7,901 274,955 Hershey Co. .................................... 8,001 299,077 Kellogg Co. .................................... 5,880 300,880 Wm. Wrigley Jr. Co. ............................ 3,550 270,368 ----------- TOTAL FOOD PRODUCTS 1,145,280 ----------- GAS UTILITIES 0.5% Questar Corp. .................................. 4,200 260,526 ----------- TOTAL GAS UTILITIES 260,526 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 24 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) HEALTH CARE EQUIPMENT & SUPPLIES 5.4% Becton, Dickinson & Co. ........................ 2,400 $214,560 C.R. Bard, Inc. ................................ 2,310 217,533 Hospira, Inc.*.................................. 6,651 273,689 Medtronic, Inc. ................................ 6,390 311,065 St Jude Medical, Inc.*.......................... 8,371 366,482 Stryker Corp. .................................. 4,330 280,714 Varian Medical Systems, Inc.*................... 8,721 408,840 Zimmer Holdings, Inc.*.......................... 7,691 570,365 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,643,248 ----------- HEALTH CARE PROVIDERS & SERVICES 3.9% Coventry Health Care, Inc.*..................... 7,490 335,028 Express Scripts, Inc.*.......................... 7,071 495,111 Laboratory Corp. of America Holdings*........... 3,960 299,455 Patterson Cos., Inc.*........................... 9,561 326,986 Quest Diagnostics, Inc. ........................ 4,910 246,384 UnitedHealth Group, Inc. ....................... 7,441 242,800 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,945,764 ----------- HEALTH CARE TECHNOLOGY 0.9% IMS Health, Inc. ............................... 17,231 426,467 ----------- TOTAL HEALTH CARE TECHNOLOGY 426,467 ----------- HOTELS, RESTAURANTS & LEISURE 2.6% Darden Restaurants, Inc. ....................... 11,301 402,090 International Game Technology................... 6,171 214,380 Starbucks Corp.*................................ 20,172 327,392 Yum! Brands, Inc. .............................. 8,871 360,872 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 1,304,734 ----------- HOUSEHOLD DURABLES 1.1% Black & Decker Corp. ........................... 5,210 341,932 Harman International Industries, Inc. .......... 4,640 189,637 ----------- TOTAL HOUSEHOLD DURABLES 531,569 ----------- HOUSEHOLD PRODUCTS 1.3% Clorox Co. ..................................... 6,400 339,200 Colgate-Palmolive Co. .......................... 4,010 283,507 ----------- TOTAL HOUSEHOLD PRODUCTS 622,707 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.0% AES Corp.*...................................... 13,821 239,933 Constellation Energy Group, Inc. ............... 3,150 266,647 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 506,580 ----------- INSURANCE 2.0% Progressive Corp. .............................. 25,562 464,973 SAFECO Corp. ................................... 7,630 509,226 ----------- TOTAL INSURANCE 974,199 ----------- INTERNET & CATALOG RETAIL 1.9% Amazon.com, Inc.*............................... 6,400 503,232 Expedia, Inc.*.................................. 17,031 430,203 ----------- TOTAL INTERNET & CATALOG RETAIL 933,435 ----------- INTERNET SOFTWARE & SERVICES 3.7% Akamai Technologies, Inc.*...................... 8,651 309,446 eBay, Inc.*..................................... 11,631 363,934 Google, Inc. -- Class A*........................ 1,010 580,033 Yahoo!, Inc.*................................... 21,562 591,015 ----------- TOTAL INTERNET SOFTWARE & SERVICES 1,844,428 ----------- IT SERVICES 2.6% Cognizant Technology Solutions Corp. -- Class A*........................................... 15,741 507,647 Fiserv, Inc.*................................... 6,530 330,091 Total System Services, Inc. .................... 11,566 275,271 Western Union Co. .............................. 8,300 190,900 ----------- TOTAL IT SERVICES 1,303,909 ----------- LIFE SCIENCES TOOLS & SERVICES 0.6% Waters Corp.*................................... 5,160 317,134 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 317,134 ----------- MACHINERY 3.0% Caterpillar, Inc. .............................. 4,790 392,205 Cummins, Inc. .................................. 5,540 347,081 Danaher Corp. .................................. 3,350 261,367 ITT Corp. ...................................... 3,330 213,120 Terex Corp.*.................................... 3,880 270,359 ----------- TOTAL MACHINERY 1,484,132 ----------- MEDIA 0.9% McGraw-Hill Cos., Inc. ......................... 5,180 212,328 Omnicom Group, Inc. ............................ 4,950 236,313 ----------- TOTAL MEDIA 448,641 ----------- METALS & MINING 4.5% Freeport-McMoRan Copper & Gold, Inc. ........... 4,680 532,350 Nucor Corp. .................................... 8,431 636,541 Titanium Metals Corp. .......................... 17,882 272,522 United States Steel Corp. ...................... 4,971 765,285 ----------- TOTAL METALS & MINING 2,206,698 ----------- MULTILINE RETAIL 1.9% Kohl's Corp.*................................... 5,981 292,172 Sears Holdings Corp.*........................... 6,540 644,909 ----------- TOTAL MULTILINE RETAIL 937,081 ----------- OIL, GAS & CONSUMABLE FUELS 9.4% Apache Corp. ................................... 3,970 534,680 Chesapeake Energy Corp. ........................ 9,111 471,039 ConocoPhillips.................................. 4,721 406,714 CONSOL Energy, Inc. ............................ 2,870 232,355 Devon Energy Corp. ............................. 3,230 366,282 EOG Resources, Inc. ............................ 4,600 600,208 Exxon Mobil Corp. .............................. 3,510 326,676 Murphy Oil Corp. ............................... 4,350 392,979 Sunoco, Inc. ................................... 8,341 387,106 Valero Energy Corp. ............................ 6,120 298,962 XTO Energy, Inc. ............................... 10,461 647,117 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 4,664,118 ----------- PERSONAL PRODUCTS 1.2% Avon Products, Inc. ............................ 8,811 343,805 Estee Lauder Cos., Inc -- Class A............... 5,920 270,011 ----------- TOTAL PERSONAL PRODUCTS 613,816 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) PHARMACEUTICALS 1.9% Barr Pharmaceuticals, Inc.*..................... 5,190 $260,694 Forest Laboratories, Inc.*...................... 12,381 429,745 Johnson & Johnson............................... 3,550 238,169 ----------- TOTAL PHARMACEUTICALS 928,608 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 1.3% CB Richard Ellis Group, Inc. -- Class A*........ 27,942 646,019 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 646,019 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.9% MEMC Electronic Materials, Inc.*................ 2,420 152,387 National Semiconductor Corp. ................... 7,981 162,733 NVIDIA Corp.*................................... 6,631 136,267 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 451,387 ----------- SOFTWARE 4.7% Adobe Systems, Inc.*............................ 8,321 310,290 Autodesk, Inc.*................................. 7,230 274,740 BMC Software, Inc.*............................. 3,790 131,740 Citrix Systems, Inc.*........................... 6,520 213,530 Electronic Arts, Inc.*.......................... 3,820 196,615 Intuit, Inc.*................................... 13,081 352,795 Microsoft Corp. ................................ 8,161 232,752 Oracle Corp.*................................... 15,171 316,315 Symantec Corp.*................................. 15,521 267,272 ----------- TOTAL SOFTWARE 2,296,049 ----------- SPECIALTY RETAIL 5.3% Abercrombie & Fitch Co. -- Class A.............. 5,870 436,200 AutoZone, Inc.*................................. 3,360 405,720 Bed Bath & Beyond, Inc.*........................ 14,701 477,782 Best Buy Co., Inc. ............................. 5,901 253,861 GameStop Corp. -- Class A*...................... 3,820 210,253 Lowe's Cos., Inc. .............................. 14,481 364,776 TJX Cos., Inc. ................................. 14,371 463,034 ----------- TOTAL SPECIALTY RETAIL 2,611,626 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.3% Coach, Inc.*.................................... 19,411 690,449 NIKE, Inc. -- Class B........................... 3,590 239,812 Polo Ralph Lauren Corp. ........................ 2,920 181,361 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 1,111,622 ----------- TOBACCO 0.6% UST, Inc. ...................................... 5,402 281,282 ----------- TOTAL TOBACCO 281,282 ----------- TOTAL COMMON STOCKS (Cost $51,032,017) 49,047,330 ----------- SHORT TERM INVESTMENTS 0.7% SSgA Prime Money Market Fund.................... 332,817 332,817 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $332,817) 332,817 ----------- TOTAL INVESTMENTS 100.0% (Cost $51,364,834) 49,380,147 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 8,823 ----------- NET ASSETS--100.0% $49,388,970 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 26 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.6% AIRLINES 1.3% Alaska Air Group, Inc.*......................... 6,040 $129,739 JetBlue Airways Corp.*.......................... 10,951 55,193 ----------- TOTAL AIRLINES 184,932 ----------- AUTO COMPONENTS 5.7% ArvinMeritor, Inc. ............................. 31,442 469,744 Lear Corp.*..................................... 5,260 150,278 Modine Manufacturing Co. ....................... 11,081 194,693 ----------- TOTAL AUTO COMPONENTS 814,715 ----------- CAPITAL MARKETS 0.3% Apollo Investment Corp. ........................ 2,662 43,071 ----------- TOTAL CAPITAL MARKETS 43,071 ----------- CHEMICALS 4.9% Cabot Corp. .................................... 1,510 44,032 Chemtura Corp. ................................. 20,781 143,804 Ferro Corp. .................................... 5,170 90,889 Lubrizol Corp. ................................. 830 48,406 Olin Corp. ..................................... 6,160 124,247 RPM International, Inc. ........................ 5,730 127,779 Sensient Technologies Corp. .................... 1,720 51,204 Valspar Corp. .................................. 3,540 77,809 ----------- TOTAL CHEMICALS 708,170 ----------- COMMERCIAL BANKS 3.9% Associated Banc-Corp. .......................... 3,660 103,468 Colonial BancGroup, Inc. ....................... 10,151 82,629 First Community Bancorp......................... 1,640 35,244 FirstMerit Corp. ............................... 4,590 94,187 TCF Financial Corp. ............................ 5,840 101,616 Webster Financial Corp. ........................ 3,680 95,864 Wilmington Trust Corp. ......................... 1,470 48,333 ----------- TOTAL COMMERCIAL BANKS 561,341 ----------- COMMERCIAL SERVICES & SUPPLIES 3.0% Kelly Services, Inc. ........................... 14,511 322,870 Manpower, Inc. ................................. 1,590 106,737 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 429,607 ----------- COMPUTERS & PERIPHERALS 3.1% Diebold, Inc. .................................. 1,830 71,736 Imation Corp. .................................. 10,511 246,378 Palm, Inc. ..................................... 22,191 127,820 ----------- TOTAL COMPUTERS & PERIPHERALS 445,934 ----------- CONSUMER FINANCE 1.3% AmeriCredit Corp.*.............................. 13,641 190,428 ----------- TOTAL CONSUMER FINANCE 190,428 ----------- CONTAINERS & PACKAGING 0.5% Sonoco Products Co. ............................ 2,240 73,808 ----------- TOTAL CONTAINERS & PACKAGING 73,808 ----------- DIVERSIFIED CONSUMER SERVICES 0.5% Regis Corp. .................................... 2,670 77,964 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 77,964 ----------- ELECTRIC UTILITIES 3.8% Aquila, Inc.*................................... 12,761 45,940 Great Plains Energy, Inc. ...................... 5,220 133,841 Hawaiian Electric Industries, Inc. ............. 5,970 147,161 IDACORP, Inc. .................................. 2,460 79,802 Sierra Pacific Resources........................ 3,040 41,435 Westar Energy, Inc. ............................ 4,460 103,427 ----------- TOTAL ELECTRIC UTILITIES 551,606 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 3.0% Arrow Electronics, Inc.*........................ 1,740 47,345 Ingram Micro, Inc. -- Class A*.................. 8,551 145,453 KEMET Corp.*.................................... 14,131 57,513 Tech Data Corp.*................................ 3,120 104,863 Vishay Intertechnology, Inc.*................... 8,391 79,295 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 434,469 ----------- FOOD & STAPLES RETAILING 0.3% Ruddick Corp. .................................. 1,320 51,084 ----------- TOTAL FOOD & STAPLES RETAILING 51,084 ----------- FOOD PRODUCTS 1.0% J.M. Smucker Co. ............................... 1,080 53,870 Smithfield Foods, Inc.*......................... 3,120 89,482 ----------- TOTAL FOOD PRODUCTS 143,352 ----------- GAS UTILITIES 2.6% AGL Resources, Inc. ............................ 3,260 110,840 Oneok, Inc. .................................... 2,800 134,736 WGL Holdings, Inc. ............................. 4,100 134,480 ----------- TOTAL GAS UTILITIES 380,056 ----------- HEALTH CARE PROVIDERS & SERVICES 3.4% Health Management Associates, Inc. -- Class A*.. 32,692 233,094 Kindred Healthcare, Inc.*....................... 6,560 155,669 Omnicare, Inc. ................................. 4,760 96,866 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 485,629 ----------- HOTELS, RESTAURANTS & LEISURE 1.8% Bob Evans Farms, Inc. .......................... 2,900 81,403 Boyd Gaming Corp. .............................. 1,380 25,875 Ruby Tuesday, Inc. ............................. 17,671 150,380 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 257,658 ----------- HOUSEHOLD DURABLES 5.1% Furniture Brands International, Inc. ........... 32,232 436,744 Ryland Group, Inc. ............................. 9,471 302,882 ----------- TOTAL HOUSEHOLD DURABLES 739,626 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (CONTINUED) INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.5% Black Hills Corp. .............................. 1,960 $76,460 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 76,460 ----------- INDUSTRIAL CONGLOMERATES 0.3% Teleflex, Inc. ................................. 819 45,119 ----------- TOTAL INDUSTRIAL CONGLOMERATES 45,119 ----------- INSURANCE 10.2% American Financial Group, Inc. ................. 3,580 98,164 Arthur J. Gallagher & Co. ...................... 2,710 66,585 Commerce Group, Inc. ........................... 2,220 80,897 Everest Re Group, Ltd. ......................... 649 58,637 Fidelity National Financial, Inc. -- Class A.... 19,521 312,141 First American Corp. ........................... 6,310 206,968 Hanover Insurance Group, Inc. .................. 1,580 70,910 Horace Mann Educators Corp. .................... 3,600 60,912 Mercury General Corp. .......................... 2,160 107,762 Old Republic International Corp. ............... 12,221 175,371 Protective Life Corp. .......................... 3,090 131,696 Unitrin, Inc. .................................. 2,480 94,091 ----------- TOTAL INSURANCE 1,464,134 ----------- IT SERVICES 0.8% Acxiom Corp. ................................... 9,661 114,290 ----------- TOTAL IT SERVICES 114,290 ----------- MACHINERY 2.7% Federal Signal Corp. ........................... 14,081 195,444 Timken Co. ..................................... 2,400 86,760 Trinity Industries, Inc. ....................... 3,310 100,624 ----------- TOTAL MACHINERY 382,828 ----------- MEDIA 4.4% Belo Corp. -- Class A........................... 9,021 91,112 Entercom Communications Corp. -- Class A........ 13,011 137,917 Lee Enterprises, Inc. .......................... 21,591 166,898 Media General, Inc. -- Class A.................. 11,971 175,734 Scholastic Corp.*............................... 2,090 58,834 ----------- TOTAL MEDIA 630,495 ----------- METALS & MINING 0.7% Worthington Industries, Inc. ................... 5,270 94,913 ----------- TOTAL METALS & MINING 94,913 ----------- MULTI-UTILITIES 5.7% Alliant Energy Corp. ........................... 2,170 81,744 Energy East Corp. .............................. 6,120 139,536 NSTAR........................................... 2,320 74,727 OGE Energy Corp. ............................... 2,560 83,686 PNM Resources, Inc. ............................ 8,350 120,992 Puget Energy, Inc. ............................. 3,150 85,712 SCANA Corp. .................................... 2,570 101,335 Vectren Corp. .................................. 4,680 132,350 ----------- TOTAL MULTI-UTILITIES 820,082 ----------- MULTILINE RETAIL 0.4% 99 Cents Only Stores*........................... 6,300 59,913 ----------- TOTAL MULTILINE RETAIL 59,913 ----------- PAPER & FOREST PRODUCTS 0.8% Louisiana-Pacific Corp. ........................ 9,761 112,349 ----------- TOTAL PAPER & FOREST PRODUCTS 112,349 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 9.6% BRE Properties, Inc. ........................... 1,190 57,061 Camden Property Trust........................... 1,820 96,296 Cousins Properties, Inc. ....................... 3,120 79,279 Duke Realty Corp. .............................. 3,700 90,354 Equity One, Inc. ............................... 2,950 72,865 Health Care REIT, Inc. ......................... 1,880 91,086 Highwoods Properties, Inc. ..................... 4,390 153,826 Hospitality Properties Trust.................... 4,280 137,517 Liberty Property Trust.......................... 3,840 134,515 Mack-Cali Realty Corp. ......................... 3,770 147,106 Nationwide Health Properties, Inc. ............. 2,570 92,571 Realty Income Corp. ............................ 2,240 58,934 UDR, Inc. ...................................... 3,390 85,699 Weingarten Realty Investors..................... 2,160 79,682 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,376,791 ----------- ROAD & RAIL 4.3% Avis Budget Group, Inc.*........................ 18,621 247,287 Werner Enterprises, Inc. ....................... 4,160 80,912 YRC Worldwide, Inc.*............................ 17,671 287,154 ----------- TOTAL ROAD & RAIL 615,353 ----------- SPECIALTY RETAIL 6.5% Barnes & Noble, Inc. ........................... 1,930 62,300 Borders Group, Inc. ............................ 19,311 121,659 Charming Shoppes, Inc.*......................... 48,533 250,430 Collective Brands, Inc.*........................ 6,330 78,302 Foot Locker, Inc. .............................. 17,901 226,448 Rent-A-Center, Inc.*............................ 9,371 201,758 ----------- TOTAL SPECIALTY RETAIL 940,897 ----------- THRIFTS & MORTGAGE FINANCE 4.5% Astoria Financial Corp. ........................ 2,890 68,493 First Niagara Financial Group, Inc. ............ 10,931 157,734 IndyMac Bancorp, Inc. .......................... 56,224 182,728 New York Community Bancorp, Inc. ............... 5,730 106,979 PMI Group, Inc. ................................ 11,081 62,386 Washington Federal, Inc. ....................... 2,670 63,573 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 641,893 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 28 RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (CONTINUED) TOBACCO 1.3% Universal Corp. ................................ 2,900 $186,151 ----------- TOTAL TOBACCO 186,151 ----------- TRADING COMPANIES & DISTRIBUTORS 1.4% GATX Corp. ..................................... 2,730 120,120 United Rentals, Inc.*........................... 4,390 82,708 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 202,828 ----------- TOTAL COMMON STOCKS (Cost $16,820,652) 14,337,946 ----------- SHORT TERM INVESTMENTS 0.3% SSgA Prime Money Market Fund.................... 44,216 44,216 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $44,216) 44,216 ----------- TOTAL INVESTMENTS 99.9% (Cost $16,864,868) 14,382,162 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 16,761 ----------- NET ASSETS-- 100.0% $14,398,923 -----------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.6% AEROSPACE & DEFENSE 1.1% Alliant Techsystems, Inc.*...................... 1,730 $190,265 ----------- TOTAL AEROSPACE & DEFENSE 190,265 ----------- BEVERAGES 1.4% Hansen Natural Corp.*........................... 6,369 225,399 ----------- TOTAL BEVERAGES 225,399 ----------- CAPITAL MARKETS 2.0% Affiliated Managers Group, Inc.*................ 1,120 111,261 Eaton Vance Corp. .............................. 3,279 120,011 SEI Investments Co. ............................ 4,429 103,063 ----------- TOTAL CAPITAL MARKETS 334,335 ----------- CHEMICALS 1.9% CF Industries Holdings, Inc. ................... 1,349 180,361 Terra Industries, Inc.*......................... 3,669 138,909 ----------- TOTAL CHEMICALS 319,270 ----------- COMMERCIAL SERVICES & SUPPLIES 5.8% Copart, Inc.*................................... 2,380 97,271 Corporate Executive Board Co. .................. 2,599 113,238 Dun & Bradstreet Corp. ......................... 1,569 132,267 Korn/Ferry International*....................... 7,708 143,831 Mine Safety Appliances Co. ..................... 1,900 70,623 Navigant Consulting, Inc.*...................... 11,837 238,160 Rollins, Inc. .................................. 5,729 91,263 Stericycle, Inc.*............................... 1,250 66,725 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 953,378 ----------- COMMUNICATIONS EQUIPMENT 2.6% F5 Networks, Inc.*.............................. 8,848 200,230 Harris Corp. ................................... 1,610 86,988 Plantronics, Inc. .............................. 5,649 140,717 ----------- TOTAL COMMUNICATIONS EQUIPMENT 427,935 ----------- COMPUTERS & PERIPHERALS 1.3% Western Digital Corp.*.......................... 7,368 213,598 ----------- TOTAL COMPUTERS & PERIPHERALS 213,598 ----------- DIVERSIFIED CONSUMER SERVICES 5.4% Career Education Corp.*......................... 8,118 163,578 Corinthian Colleges, Inc.*...................... 11,077 125,724 ITT Educational Services, Inc.*................. 2,150 164,819 Matthews International Corp. -- Class A......... 2,789 137,888 Sotheby's....................................... 3,529 97,753 Strayer Education, Inc. ........................ 1,060 196,831 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 886,593 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.9% Amphenol Corp. ................................. 3,149 145,421 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 145,421 ----------- ENERGY EQUIPMENT & SERVICES 0.9% FMC Technologies, Inc.*......................... 2,250 151,200 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 151,200 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 5.0% Gen-Probe, Inc.*................................ 2,250 126,810 Hologic, Inc.*.................................. 6,039 176,278 Intuitive Surgical, Inc.*....................... 780 225,623 Kinetic Concepts, Inc.*......................... 4,489 178,034 ResMed, Inc.*................................... 2,980 128,498 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 835,243 ----------- HEALTH CARE PROVIDERS & SERVICES 5.7% Apria Healthcare Group, Inc.*................... 7,298 128,591 Community Health Systems, Inc.*................. 3,689 138,448 Henry Schein, Inc.*............................. 1,600 88,592 Lincare Holdings, Inc.*......................... 4,339 105,611 Psychiatric Solutions, Inc.*.................... 8,928 309,891 VCA Antech, Inc.*............................... 5,118 165,670 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 936,803 ----------- HEALTH CARE TECHNOLOGY 0.5% Cerner Corp.*................................... 1,770 81,898 ----------- TOTAL HEALTH CARE TECHNOLOGY 81,898 ----------- HOTELS, RESTAURANTS & LEISURE 2.1% Cheesecake Factory, Inc.*....................... 5,039 114,033 Chipotle Mexican Grill, Inc. -- Class A*........ 1,330 130,513 Scientific Games Corp. -- Class A*.............. 3,609 101,629 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 346,175 ----------- HOUSEHOLD DURABLES 3.2% NVR, Inc.*...................................... 500 306,750 Toll Brothers, Inc.*............................ 10,187 230,634 ----------- TOTAL HOUSEHOLD DURABLES 537,384 ----------- HOUSEHOLD PRODUCTS 1.6% Church & Dwight Co., Inc. ...................... 1,860 105,685 Energizer Holdings, Inc.*....................... 2,019 159,622 ----------- TOTAL HOUSEHOLD PRODUCTS 265,307 ----------- INSURANCE 1.7% Brown & Brown, Inc. ............................ 6,638 127,450 W.R. Berkley Corp. ............................. 5,928 152,290 ----------- TOTAL INSURANCE 279,740 ----------- INTERNET SOFTWARE & SERVICES 2.6% Digital River, Inc.*............................ 8,868 291,314 ValueClick, Inc.*............................... 6,638 132,428 ----------- TOTAL INTERNET SOFTWARE & SERVICES 423,742 ----------- IT SERVICES 3.5% Alliance Data Systems Corp.*.................... 1,819 104,429 DST Systems, Inc.*.............................. 2,859 171,083 Gartner, Inc.*.................................. 3,409 78,134 Global Payments, Inc. .......................... 2,859 126,539 SRA International, Inc. -- Class A*............. 3,769 99,012 ----------- TOTAL IT SERVICES 579,197 ----------- LIFE SCIENCES TOOLS & SERVICES 4.7% Affymetrix, Inc.*............................... 8,958 97,732 Charles River Laboratories International, Inc.*........................................ 1,060 61,533 Covance, Inc.*.................................. 909 76,165 Invitrogen Corp.*............................... 2,699 252,546 Pharmaceutical Product Development, Inc. ....... 3,339 138,301 Techne Corp.*................................... 2,069 150,044 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 776,321 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 30 RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS (CONTINUED) MACHINERY 3.3% Donaldson Co., Inc. ............................ 2,449 $106,629 Graco, Inc. .................................... 4,109 170,154 Joy Global, Inc. ............................... 3,679 273,166 ----------- TOTAL MACHINERY 549,949 ----------- MEDIA 3.0% Getty Images, Inc.*............................. 6,168 201,385 John Wiley & Sons, Inc.- Class A................ 2,719 125,210 Valassis Communications, Inc.*.................. 11,637 165,246 ----------- TOTAL MEDIA 491,841 ----------- METALS & MINING 5.6% Cleveland-Cliffs, Inc. ......................... 2,489 399,236 Commercial Metals Co. .......................... 7,708 240,027 Steel Dynamics, Inc. ........................... 8,338 290,579 ----------- TOTAL METALS & MINING 929,842 ----------- MULTILINE RETAIL 0.9% Dollar Tree Stores, Inc.*....................... 4,609 145,644 ----------- TOTAL MULTILINE RETAIL 145,644 ----------- OIL, GAS & CONSUMABLE FUELS 9.2% Cimarex Energy Co. ............................. 4,329 269,697 Denbury Resources, Inc.*........................ 4,579 139,934 Encore Acquisition Co.*......................... 9,108 415,598 Frontier Oil Corp. ............................. 5,159 128,201 Newfield Exploration Co.*....................... 2,299 139,687 Pioneer Natural Resources Co. .................. 2,369 136,762 Quicksilver Resources, Inc.*.................... 3,689 153,057 Southwestern Energy Co.*........................ 3,429 145,081 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 1,528,017 ----------- PERSONAL PRODUCTS 0.8% NBTY, Inc.*..................................... 4,699 132,277 ----------- TOTAL PERSONAL PRODUCTS 132,277 ----------- PHARMACEUTICALS 3.7% Endo Pharmaceuticals Holdings, Inc.*............ 7,848 194,866 Medicis Pharmaceutical Corp. -- Class A......... 3,110 64,066 Par Pharmaceutical Cos., Inc.*.................. 6,129 104,500 Sepracor, Inc.*................................. 11,217 241,726 ----------- TOTAL PHARMACEUTICALS 605,158 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 1.5% Jones Lang LaSalle, Inc. ....................... 3,119 242,066 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 242,066 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.2% Cree, Inc.*..................................... 7,008 182,208 Silicon Laboratories, Inc.*..................... 5,399 182,324 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 364,532 ----------- SOFTWARE 2.9% ACI Worldwide, Inc.*............................ 8,858 195,762 Fair Isaac Corp. ............................... 3,269 80,973 Macrovision Corp.*.............................. 4,599 72,572 McAfee, Inc.*................................... 3,929 130,639 ----------- TOTAL SOFTWARE 479,946 ----------- SPECIALTY RETAIL 10.1% Advance Auto Parts, Inc. ....................... 3,739 129,669 Aeropostale, Inc.*.............................. 9,808 311,796 American Eagle Outfitters, Inc. ................ 6,208 114,041 Chico's FAS, Inc.*.............................. 26,553 187,730 Guess?, Inc. ................................... 1,869 71,545 O'Reilly Automotive, Inc.*...................... 3,290 94,982 Pacific Sunwear of California, Inc.*............ 10,538 141,315 Ross Stores, Inc. .............................. 6,248 209,245 Urban Outfitters, Inc.*......................... 8,078 276,671 Williams-Sonoma, Inc. .......................... 5,019 132,502 ----------- TOTAL SPECIALTY RETAIL 1,669,496 ----------- TEXTILES, APPAREL & LUXURY GOODS 1.7% Timberland Co. -- Class A*...................... 8,718 127,283 Warnaco Group, Inc.*............................ 3,479 160,521 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 287,804 ----------- TRADING COMPANIES & DISTRIBUTORS 0.8% Fastenal Co. ................................... 2,659 129,785 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 129,785 ----------- TOTAL COMMON STOCKS (Cost $17,662,527) 16,465,561 ----------- SHORT TERM INVESTMENTS 0.4% SSgA Prime Money Market Fund.................... 73,509 73,509 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $73,509) 73,509 ----------- TOTAL INVESTMENTS 100.0% (Cost $17,736,036) 16,539,070 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,570) ----------- NET ASSETS--100.0% $16,536,500 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS 99.6% AEROSPACE & DEFENSE 0.4% Applied Signal Technology, Inc. ................ 9,150 $104,676 ----------- TOTAL AEROSPACE & DEFENSE 104,676 ----------- AUTO COMPONENTS 1.8% Standard Motor Products, Inc. .................. 46,248 281,188 Superior Industries International, Inc. ........ 10,359 210,391 ----------- TOTAL AUTO COMPONENTS 491,579 ----------- AUTOMOBILES 0.7% Monaco Coach Corp. ............................. 29,198 184,823 ----------- TOTAL AUTOMOBILES 184,823 ----------- BUILDING PRODUCTS 2.1% Gibraltar Industries, Inc. ..................... 13,419 140,229 Griffon Corp.*.................................. 13,999 130,891 NCI Building Systems, Inc.*..................... 2,509 60,567 Universal Forest Products, Inc. ................ 6,720 233,251 ----------- TOTAL BUILDING PRODUCTS 564,938 ----------- CAPITAL MARKETS 0.7% SWS Group, Inc. ................................ 14,349 188,259 ----------- TOTAL CAPITAL MARKETS 188,259 ----------- CHEMICALS 4.5% A. Schulman, Inc. .............................. 7,590 160,908 Georgia Gulf Corp. ............................. 54,667 328,549 Material Sciences Corp.*........................ 10,270 81,544 Omnova Solutions, Inc.*......................... 14,709 50,158 PolyOne Corp.*.................................. 34,569 255,119 Quaker Chemical Corp. .......................... 7,020 217,620 Tronox, Inc. ................................... 39,659 118,580 ----------- TOTAL CHEMICALS 1,212,478 ----------- COMMERCIAL BANKS 9.4% Central Pacific Financial Corp. ................ 10,909 200,289 Community Bank System, Inc. .................... 5,309 135,326 First Bancorp................................... 36,928 379,989 First Commonwealth Financial Corp. ............. 10,920 135,954 First Financial Bancorp......................... 10,560 138,547 First Midwest Bancorp, Inc. .................... 1,630 41,614 Hanmi Financial Corp. .......................... 13,399 93,659 Independent Bank Corp. ......................... 21,879 174,595 Irwin Financial Corp. .......................... 23,339 136,300 National Penn Bancshares, Inc. ................. 6,300 105,147 Old National Bancorp............................ 7,309 125,057 Provident Bankshares Corp. ..................... 7,449 95,422 South Financial Group, Inc. .................... 9,299 56,166 Sterling Bancorp................................ 8,169 134,053 Sterling Financial Corp. ....................... 6,420 78,388 Susquehanna Bancshares, Inc. ................... 8,480 168,667 Umpqua Holdings Corp. .......................... 12,019 177,280 United Bankshares, Inc. ........................ 1,780 51,780 Whitney Holding Corp. .......................... 3,770 88,256 ----------- TOTAL COMMERCIAL BANKS 2,516,489 ----------- COMMERCIAL SERVICES & SUPPLIES 3.7% ABM Industries, Inc. ........................... 6,790 142,183 Angelica Corp. ................................. 9,240 149,318 CDI Corp. ...................................... 3,970 107,984 Spherion Corp.*................................. 32,139 158,767 Standard Register Co. .......................... 18,699 177,266 United Stationers, Inc.*........................ 1,190 52,467 Volt Information Sciences, Inc.*................ 14,939 199,286 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 987,271 ----------- COMMUNICATIONS EQUIPMENT 0.7% Black Box Corp. ................................ 1,980 58,865 Ditech Networks, Inc.*.......................... 26,729 76,178 Symmetricom, Inc.*.............................. 12,999 55,766 ----------- TOTAL COMMUNICATIONS EQUIPMENT 190,809 ----------- CONSTRUCTION & ENGINEERING 0.2% Insituform Technologies, Inc. -- Class A*....... 3,480 58,882 ----------- TOTAL CONSTRUCTION & ENGINEERING 58,882 ----------- CONTAINERS & PACKAGING 1.7% Chesapeake Corp.*............................... 54,598 239,139 Rock-Tenn Co. .................................. 6,200 210,366 ----------- TOTAL CONTAINERS & PACKAGING 449,505 ----------- DISTRIBUTORS 1.4% Audiovox Corp. -- Class A*...................... 7,100 77,532 Building Materials Holding Corp. ............... 63,327 295,104 ----------- TOTAL DISTRIBUTORS 372,636 ----------- DIVERSIFIED CONSUMER SERVICES 0.2% CPI Corp. ...................................... 3,180 59,975 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 59,975 ----------- DIVERSIFIED FINANCIAL SERVICES 0.3% Financial Federal Corp. ........................ 3,220 75,187 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 75,187 ----------- ELECTRIC UTILITIES 1.8% Allete, Inc. ................................... 2,740 114,450 Central Vermont Public Service Corp. ........... 3,720 86,676 Cleco Corp. .................................... 3,230 77,552 UIL Holdings Corp. ............................. 3,150 98,595 Unisource Energy Corp. ......................... 3,630 113,401 ----------- TOTAL ELECTRIC UTILITIES 490,674 ----------- ELECTRICAL EQUIPMENT 0.6% AO Smith Corp. ................................. 3,200 99,008 C&D Technologies, Inc.*......................... 11,149 61,542 ----------- TOTAL ELECTRICAL EQUIPMENT 160,550 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 3.0% Benchmark Electronics, Inc.*.................... 4,499 79,992 CTS Corp. ...................................... 9,249 104,051 Gerber Scientific, Inc.*........................ 6,790 62,943 Insight Enterprises, Inc.*...................... 6,609 79,705 Methode Electronics, Inc. ...................... 4,300 46,612 Park Electrochemical Corp. ..................... 3,179 86,151 SYNNEX Corp.*................................... 14,329 342,177 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 801,631 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 32 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD & STAPLES RETAILING 2.7% Great Atlantic & Pacific Tea Co., Inc.*......... 1,890 $52,013 Longs Drug Stores Corp. ........................ 1,190 47,671 Nash Finch Co. ................................. 7,110 260,084 Performance Food Group Co.*..................... 6,309 211,099 Spartan Stores, Inc. ........................... 7,530 157,226 ----------- TOTAL FOOD & STAPLES RETAILING 728,093 ----------- FOOD PRODUCTS 0.2% Lance, Inc. .................................... 2,930 61,413 ----------- TOTAL FOOD PRODUCTS 61,413 ----------- GAS UTILITIES 4.0% Atmos Energy Corp. ............................. 10,260 283,997 Laclede Group, Inc. ............................ 5,970 225,785 New Jersey Resources Corp. ..................... 2,940 93,639 Northwest Natural Gas Co. ...................... 1,230 55,190 Piedmont Natural Gas Co., Inc. ................. 3,450 90,701 Southern Union Co. ............................. 2,360 60,463 Southwest Gas Corp. ............................ 5,680 163,982 UGI Corp. ...................................... 3,929 102,154 ----------- TOTAL GAS UTILITIES 1,075,911 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 0.3% Datascope Corp. ................................ 2,040 76,418 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 76,418 ----------- HEALTH CARE PROVIDERS & SERVICES 0.9% Gentiva Health Services, Inc.*.................. 2,650 57,611 MedCath Corp.*.................................. 3,259 60,487 Owens & Minor, Inc. ............................ 2,459 111,442 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 229,540 ----------- HOTELS, RESTAURANTS & LEISURE 2.0% CKE Restaurants, Inc. .......................... 3,870 40,596 Landry's Restaurants, Inc. ..................... 6,700 106,999 O'Charleys, Inc. ............................... 12,829 148,816 Steak n Shake Co.*.............................. 7,040 55,757 Triarc Cos., Inc. -- Class A.................... 27,249 193,468 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 545,636 ----------- HOUSEHOLD DURABLES 5.7% Bassett Furniture Industries, Inc. ............. 38,269 456,932 Ethan Allen Interiors, Inc. .................... 2,990 82,135 La-Z-Boy, Inc. ................................. 49,068 312,563 Libbey, Inc. ................................... 7,639 108,474 M/I Homes, Inc. ................................ 22,289 382,256 National Presto Industries, Inc. ............... 3,240 175,576 ----------- TOTAL HOUSEHOLD DURABLES 1,517,936 ----------- HOUSEHOLD PRODUCTS 1.2% Central Garden & Pet Co.*....................... 48,198 241,954 Spectrum Brands, Inc.*.......................... 18,149 81,489 ----------- TOTAL HOUSEHOLD PRODUCTS 323,443 ----------- INDUSTRIAL CONGLOMERATES 1.4% Standex International Corp. .................... 12,179 256,733 Tredegar Corp. ................................. 6,990 114,217 ----------- TOTAL INDUSTRIAL CONGLOMERATES 370,950 ----------- INSURANCE 4.5% LandAmerica Financial Group, Inc. .............. 12,739 365,609 Presidential Life Corp. ........................ 8,019 136,002 Safety Insurance Group, Inc. ................... 5,159 185,208 Selective Insurance Group, Inc. ................ 4,420 94,234 Stewart Information Services Corp. ............. 14,699 359,979 United Fire & Casualty Co. ..................... 2,390 78,751 ----------- TOTAL INSURANCE 1,219,783 ----------- IT SERVICES 1.7% Ciber, Inc.*.................................... 17,149 107,353 Gevity HR, Inc. ................................ 51,128 348,693 ----------- TOTAL IT SERVICES 456,046 ----------- LEISURE EQUIPMENT & PRODUCTS 1.7% Arctic Cat, Inc. ............................... 21,129 160,158 MarineMax, Inc.*................................ 12,809 146,022 Nautilus, Inc. ................................. 38,229 138,007 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 444,187 ----------- LIFE SCIENCES TOOLS & SERVICES 0.4% Cambrex Corp. .................................. 18,629 108,980 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 108,980 ----------- MACHINERY 2.6% Briggs & Stratton Corp. ........................ 6,640 101,061 Lydall, Inc.*................................... 9,960 116,034 Mueller Industries, Inc. ....................... 2,380 77,041 Wabash National Corp. .......................... 48,698 408,089 ----------- TOTAL MACHINERY 702,225 ----------- MEDIA 0.5% Live Nation, Inc.*.............................. 9,129 125,889 ----------- TOTAL MEDIA 125,889 ----------- METALS & MINING 0.4% AM Castle & Co. ................................ 3,310 102,312 ----------- TOTAL METALS & MINING 102,312 ----------- MULTI-UTILITIES 1.0% Avista Corp. ................................... 6,180 126,875 CH Energy Group, Inc. .......................... 4,410 155,938 ----------- TOTAL MULTI-UTILITIES 282,813 ----------- MULTILINE RETAIL 1.9% Fred's, Inc. -- Class A......................... 19,539 216,492 Tuesday Morning Corp.*.......................... 55,148 300,005 ----------- TOTAL MULTILINE RETAIL 516,497 ----------- PAPER & FOREST PRODUCTS 0.9% Schweitzer-Mauduit International, Inc. ......... 3,170 70,152 Wausau Paper Corp. ............................. 21,899 169,498 ----------- TOTAL PAPER & FOREST PRODUCTS 239,650 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) REAL ESTATE INVESTMENT TRUSTS (REITS) 8.6% BioMed Realty Trust, Inc. ...................... 6,210 $161,460 Colonial Properties Trust....................... 12,159 294,612 DiamondRock Hospitality Co. .................... 7,680 97,920 Entertainment Properties Trust.................. 1,910 101,918 Home Properties, Inc. .......................... 2,520 132,476 Inland Real Estate Corp. ....................... 5,850 94,477 Kite Realty Group Trust......................... 7,889 107,133 Lexington Corporate Properties Trust............ 9,709 139,810 LTC Properties, Inc. ........................... 3,540 96,394 Medical Properties Trust, Inc. ................. 13,799 167,658 Mid-America Apartment Communities, Inc. ........ 3,040 159,600 National Retail Properties, Inc. ............... 4,849 111,091 Parkway Properties, Inc. ....................... 4,280 169,745 Pennsylvania Real Estate Investment Trust....... 7,379 185,803 PS Business Parks, Inc. ........................ 1,000 57,240 Senior Housing Properties Trust................. 4,760 114,002 Sovran Self Storage, Inc. ...................... 2,510 112,197 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 2,303,536 ----------- ROAD & RAIL 1.7% Arkansas Best Corp. ............................ 11,310 446,519 ----------- TOTAL ROAD & RAIL 446,519 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.7% Photronics, Inc.*............................... 12,579 133,337 Rudolph Technologies, Inc.*..................... 6,580 66,853 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 200,190 ----------- SPECIALTY RETAIL 13.4% Big 5 Sporting Goods Corp. ..................... 5,609 51,547 Brown Shoe Co., Inc. ........................... 9,560 159,461 Cabela's, Inc.*................................. 3,850 52,090 Cato Corp. -- Class A........................... 11,340 195,615 Finish Line, Inc. -- Class A.................... 119,045 782,126 Group 1 Automotive, Inc. ....................... 11,740 313,223 Haverty Furniture Cos., Inc. ................... 34,088 311,223 Jo-Ann Stores, Inc.*............................ 17,679 334,840 Lithia Motors, Inc. -- Class A.................. 27,948 251,532 PEP Boys-Manny Moe & Jack....................... 24,229 216,123 Sonic Automotive, Inc. -- Class A............... 13,889 281,808 Stein Mart, Inc. ............................... 86,296 459,958 Zale Corp.*..................................... 8,699 180,243 ----------- TOTAL SPECIALTY RETAIL 3,589,789 ----------- TEXTILES, APPAREL & LUXURY GOODS 0.9% Oxford Industries, Inc. ........................ 8,900 247,331 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 247,331 ----------- THRIFTS & MORTGAGE FINANCE 5.5% Anchor BanCorp Wisconsin, Inc. ................. 2,199 33,403 Bank Mutual Corp. .............................. 6,980 78,106 BankAtlantic Bancorp, Inc. -- Class A........... 54,398 167,546 BankUnited Financial Corp. -- Class A........... 33,419 131,337 Brookline Bancorp, Inc. ........................ 7,390 79,812 Corus Bankshares, Inc. ......................... 32,609 239,024 Dime Community Bancshares....................... 5,510 102,872 Downey Financial Corp. ......................... 4,579 64,747 FirstFed Financial Corp.*....................... 3,500 53,480 Flagstar Bancorp, Inc. ......................... 53,048 324,654 Franklin Bank Corp.*............................ 56,548 87,649 Guaranty Financial Group, Inc.*................. 6,109 46,734 TrustCo Bank Corp. ............................. 6,350 55,435 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 1,464,799 ----------- TOBACCO 0.8% Alliance One International, Inc.*............... 36,979 227,421 ----------- TOTAL TOBACCO 227,421 ----------- TRADING COMPANIES & DISTRIBUTORS 0.8% Lawson Products, Inc. .......................... 2,220 56,344 Watsco, Inc. ................................... 3,530 160,156 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 216,500 ----------- TOTAL COMMON STOCKS (Cost $31,045,109) 26,734,169 ----------- SHORT TERM INVESTMENTS 0.3% SSgA Prime Money Market Fund.................... 87,330 87,330 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $87,330) 87,330 ----------- TOTAL INVESTMENTS 99.9% (Cost $31,132,439) 26,821,499 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 13,904 ----------- NET ASSETS--100.0% $26,835,403 -------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 34 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.9% AEROSPACE & DEFENSE 3.0% AAR Corp.*...................................... 930 $21,762 Ceradyne, Inc.*................................. 1,230 47,921 Curtiss-Wright Corp. ........................... 660 31,343 Orbital Sciences Corp.*......................... 1,740 46,823 Teledyne Technologies, Inc.*.................... 430 25,254 ---------- TOTAL AEROSPACE & DEFENSE 173,103 ---------- AIR FREIGHT & LOGISTICS 0.5% Forward Air Corp. .............................. 890 30,340 ---------- TOTAL AIR FREIGHT & LOGISTICS 30,340 ---------- AUTO COMPONENTS 0.7% Drew Industries, Inc.*.......................... 1,570 38,292 ---------- TOTAL AUTO COMPONENTS 38,292 ---------- BEVERAGES 0.4% Boston Beer Co., Inc. -- Class A*............... 580 25,694 ---------- TOTAL BEVERAGES 25,694 ---------- BIOTECHNOLOGY 2.9% LifeCell Corp.*................................. 1,700 86,326 Martek Biosciences Corp.*....................... 2,290 80,745 ---------- TOTAL BIOTECHNOLOGY 167,071 ---------- BUILDING PRODUCTS 0.6% Simpson Manufacturing Co., Inc. ................ 1,250 32,988 ---------- TOTAL BUILDING PRODUCTS 32,988 ---------- CAPITAL MARKETS 1.7% optionsXpress Holdings, Inc. ................... 2,230 47,878 TradeStation Group, Inc.*....................... 5,340 49,822 ---------- TOTAL CAPITAL MARKETS 97,700 ---------- CHEMICALS 0.8% NewMarket Corp. ................................ 740 48,048 ---------- TOTAL CHEMICALS 48,048 ---------- COMMERCIAL BANKS 2.2% Nara Bancorp, Inc. ............................. 2,640 34,663 PrivateBancorp, Inc. ........................... 820 27,872 UCBH Holdings, Inc. ............................ 1,750 12,740 Wilshire Bancorp, Inc. ......................... 6,050 49,852 ---------- TOTAL COMMERCIAL BANKS 125,127 ---------- COMMERCIAL SERVICES & SUPPLIES 0.4% Waste Connections, Inc.*........................ 710 22,770 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 22,770 ---------- COMMUNICATIONS EQUIPMENT 1.3% Comtech Telecommunications Corp.*............... 750 29,047 NETGEAR, Inc.*.................................. 2,170 35,176 ViaSat, Inc.*................................... 640 14,144 ---------- TOTAL COMMUNICATIONS EQUIPMENT 78,367 ---------- COMPUTERS & PERIPHERALS 1.0% Intevac, Inc.*.................................. 2,900 38,512 Stratasys, Inc.*................................ 900 17,496 ---------- TOTAL COMPUTERS & PERIPHERALS 56,008 ---------- CONSTRUCTION MATERIALS 0.9% Headwaters, Inc.*............................... 4,430 50,635 ---------- TOTAL CONSTRUCTION MATERIALS 50,635 ---------- CONSUMER FINANCE 1.2% First Cash Financial Services, Inc.*............ 1,620 24,041 World Acceptance Corp.*......................... 1,210 47,650 ---------- TOTAL CONSUMER FINANCE 71,691 ---------- DISTRIBUTORS 0.3% LKQ Corp.*...................................... 840 18,278 ---------- TOTAL DISTRIBUTORS 18,278 ---------- DIVERSIFIED CONSUMER SERVICES 2.7% Bright Horizons Family Solutions, Inc.*......... 750 35,557 Coinstar, Inc.*................................. 1,890 60,272 Pre-Paid Legal Services, Inc.*.................. 940 41,116 Universal Technical Institute, Inc.*............ 1,580 17,917 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 154,862 ---------- DIVERSIFIED FINANCIAL SERVICES 1.1% Portfolio Recovery Associates, Inc. ............ 1,420 62,494 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 62,494 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 3.8% Brightpoint, Inc.*.............................. 2,260 20,702 Daktronics, Inc. ............................... 1,320 19,523 FARO Technologies, Inc.*........................ 1,410 49,688 FLIR Systems, Inc.*............................. 1,890 64,884 LoJack Corp.*................................... 1,650 16,319 Scansource, Inc.*............................... 930 23,222 Trimble Navigation, Ltd.*....................... 750 24,592 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 218,930 ---------- ENERGY EQUIPMENT & SERVICES 6.3% Basic Energy Services, Inc.*.................... 3,370 78,184 CARBO Ceramics, Inc. ........................... 780 37,073 Dril-Quip, Inc.*................................ 260 14,862 Helix Energy Solutions Group, Inc.*............. 1,240 42,842 Hornbeck Offshore Services, Inc.*............... 1,220 60,841 Oceaneering International, Inc.*................ 420 28,048 Superior Well Services, Inc.*................... 1,240 29,524 Unit Corp.*..................................... 1,150 73,037 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 364,411 ---------- FOOD & STAPLES RETAILING 0.3% United Natural Foods, Inc.*..................... 920 18,216 ---------- TOTAL FOOD & STAPLES RETAILING 18,216 ----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (CONTINUED) HEALTH CARE EQUIPMENT & SUPPLIES 5.7% Abaxis, Inc.*................................... 940 $23,951 American Medical Systems Holdings, Inc.*........ 1,230 17,343 Cooper Cos., Inc. .............................. 860 30,100 Haemonetics Corp.*.............................. 250 14,308 ICU Medical, Inc.*.............................. 600 15,072 Idexx Laboratories, Inc.*....................... 550 29,260 Immucor, Inc.*.................................. 1,500 40,470 Integra LifeSciences Holdings Corp.*............ 900 38,133 Kensey Nash Corp.*.............................. 720 20,995 Merit Medical Systems, Inc.*.................... 1,470 21,624 Palomar Medical Technologies, Inc.*............. 4,120 58,092 SurModics, Inc.*................................ 460 20,456 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 329,804 ---------- HEALTH CARE PROVIDERS & SERVICES 8.2% Air Methods Corp.*.............................. 650 26,065 Amedisys, Inc.*................................. 440 22,792 AMN Healthcare Services, Inc.*.................. 2,360 34,432 Amsurg Corp.*................................... 970 24,774 HealthExtras, Inc.*............................. 2,900 81,838 Healthways, Inc.*............................... 820 29,955 inVentiv Health, Inc.*.......................... 1,710 50,838 LCA-Vision, Inc. ............................... 3,870 39,126 LHC Group, Inc.*................................ 3,070 47,892 Molina Healthcare, Inc.*........................ 1,070 26,568 Pediatrix Medical Group, Inc.*.................. 460 31,289 PharMerica Corp.*............................... 1,650 28,099 Sunrise Senior Living, Inc.*.................... 1,250 26,813 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 470,481 ---------- HOTELS, RESTAURANTS & LEISURE 5.3% CEC Entertainment, Inc.*........................ 1,230 45,756 Monarch Casino & Resort, Inc.*.................. 1,440 19,066 P.F. Chang's China Bistro, Inc.*................ 1,450 44,993 Panera Bread Co. -- Class A*.................... 1,400 73,164 Papa John's International, Inc.*................ 1,590 42,930 Shuffle Master, Inc.*........................... 5,240 25,728 Sonic Corp.*.................................... 1,680 36,943 WMS Industries, Inc.*........................... 450 16,286 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 304,866 ---------- HOUSEHOLD DURABLES 2.2% Meritage Homes Corp.*........................... 3,680 69,810 Standard Pacific Corp. ......................... 11,720 59,303 ---------- TOTAL HOUSEHOLD DURABLES 129,113 ---------- INSURANCE 2.2% Infinity Property & Casualty Corp. ............. 1,100 42,636 Philadelphia Consolidated Holding Co.*.......... 1,040 38,355 Zenith National Insurance Corp. ................ 1,270 47,168 ---------- TOTAL INSURANCE 128,159 ---------- INTERNET & CATALOG RETAIL 2.9% NutriSystem, Inc.*.............................. 3,440 69,075 PetMed Express, Inc.*........................... 5,320 59,691 Stamps.com, Inc.*............................... 2,810 38,525 ---------- TOTAL INTERNET & CATALOG RETAIL 167,291 ---------- INTERNET SOFTWARE & SERVICES 5.8% Bankrate, Inc.*................................. 1,600 83,584 DealerTrack Holdings, Inc.*..................... 1,950 37,518 InfoSpace, Inc. ................................ 2,550 30,753 j2 Global Communications, Inc.*................. 3,510 75,114 United Online, Inc. ............................ 3,950 42,186 Websense, Inc.*................................. 3,270 63,601 ---------- TOTAL INTERNET SOFTWARE & SERVICES 332,756 ---------- IT SERVICES 1.9% CACI International, Inc. -- Class A*............ 720 36,086 Wright Express Corp.*........................... 2,210 72,930 ---------- TOTAL IT SERVICES 109,016 ---------- LEISURE EQUIPMENT & PRODUCTS 1.6% Polaris Industries, Inc. ....................... 770 35,844 Pool Corp. ..................................... 2,500 54,575 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 90,419 ---------- LIFE SCIENCES TOOLS & SERVICES 1.4% Dionex Corp.*................................... 440 34,417 Kendle International, Inc.*..................... 650 27,749 PharmaNet Development Group, Inc.*.............. 740 17,656 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 79,822 ---------- MACHINERY 0.5% Toro Co. ....................................... 640 27,130 ---------- TOTAL MACHINERY 27,130 ---------- MEDIA 0.7% Arbitron, Inc. ................................. 840 40,186 ---------- TOTAL MEDIA 40,186 ---------- METALS & MINING 0.4% Brush Engineered Materials, Inc.*............... 720 22,327 ---------- TOTAL METALS & MINING 22,327 ---------- OIL, GAS & CONSUMABLE FUELS 3.9% Cabot Oil & Gas Corp. .......................... 780 44,437 Penn Virginia Corp. ............................ 860 45,150 Petroleum Development Corp.*.................... 950 71,468 St. Mary Land & Exploration Co. ................ 1,440 62,957 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 224,012 ---------- PAPER & FOREST PRODUCTS 0.8% Deltic Timber Corp. ............................ 890 46,948 ---------- TOTAL PAPER & FOREST PRODUCTS 46,948 ----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 36 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (CONTINUED) PERSONAL PRODUCTS 2.3% Chattem, Inc.*.................................. 370 $25,856 Mannatech, Inc. ................................ 11,670 76,205 USANA Health Sciences, Inc.*.................... 1,740 33,930 ---------- TOTAL PERSONAL PRODUCTS 135,991 ---------- PHARMACEUTICALS 0.5% Sciele Pharma, Inc.*............................ 1,530 29,483 ---------- TOTAL PHARMACEUTICALS 29,483 ---------- ROAD & RAIL 2.3% Heartland Express, Inc. ........................ 1,980 30,631 Knight Transportation, Inc. .................... 2,350 39,926 Landstar System, Inc. .......................... 1,230 63,911 ---------- TOTAL ROAD & RAIL 134,468 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.4% Diodes, Inc.*................................... 820 22,173 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 22,173 ---------- SOFTWARE 9.6% Ansoft Corp.*................................... 1,830 60,683 Ansys, Inc.*.................................... 740 29,770 Blackbaud, Inc. ................................ 1,350 31,712 Concur Technologies, Inc.*...................... 1,110 36,785 Epicor Software Corp.*.......................... 5,300 42,400 EPIQ Systems, Inc.*............................. 1,910 29,490 Factset Research Systems, Inc. ................. 770 46,223 MICROS Systems, Inc.*........................... 810 28,877 Quality Systems, Inc. .......................... 1,780 57,174 Secure Computing Corp.*......................... 5,220 34,556 Smith Micro Software, Inc.*..................... 5,050 43,581 Sonic Solutions, Inc.*.......................... 4,020 36,944 SPSS, Inc.*..................................... 990 41,818 Tyler Technologies, Inc.*....................... 2,200 31,834 ---------- TOTAL SOFTWARE 551,847 ---------- SPECIALTY RETAIL 6.3% Christopher & Banks Corp. ...................... 2,370 28,084 Dress Barn, Inc.*............................... 2,470 33,246 Gymboree Corp.*................................. 1,400 60,508 Hibbett Sports, Inc.*........................... 2,060 37,616 Jos. A. Bank Clothiers, Inc.*................... 1,390 33,930 Select Comfort Corp.*........................... 5,900 17,818 Stage Stores, Inc. ............................. 4,470 70,358 Tractor Supply Co.*............................. 1,070 38,049 Zumiez, Inc.*................................... 2,080 43,576 ---------- TOTAL SPECIALTY RETAIL 363,185 ---------- TEXTILES, APPAREL & LUXURY GOODS 2.9% Crocs, Inc.*.................................... 1,890 19,297 Deckers Outdoor Corp.*.......................... 200 27,614 Fossil, Inc.*................................... 690 24,695 K-Swiss, Inc. -- Class A........................ 3,010 44,096 Volcom, Inc.*................................... 2,600 49,374 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 165,076 ---------- TOTAL COMMON STOCKS (Cost $6,380,323) 5,759,578 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 5,897 5,897 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $5,897) 5,897 ---------- TOTAL INVESTMENTS 100.0% (Cost $6,386,220) 5,765,475 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (513) ---------- NET ASSETS--100.0% $5,764,962 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 37 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.6% AUTO COMPONENTS 2.4% Goodyear Tire & Rubber Co.*..................... 3,541 $94,828 Johnson Controls, Inc. ......................... 2,498 88,080 ---------- TOTAL AUTO COMPONENTS 182,908 ---------- AUTOMOBILES 4.2% Ford Motor Co.*................................. 15,447 127,592 General Motors Corp. ........................... 4,427 102,706 Harley-Davidson, Inc. .......................... 2,314 88,511 ---------- TOTAL AUTOMOBILES 318,809 ---------- DISTRIBUTORS 1.2% Genuine Parts Co. .............................. 2,094 88,911 ---------- TOTAL DISTRIBUTORS 88,911 ---------- DIVERSIFIED CONSUMER SERVICES 2.2% Apollo Group, Inc. -- Class A*.................. 1,622 82,560 H&R Block, Inc. ................................ 4,075 89,120 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 171,680 ---------- HOTELS, RESTAURANTS & LEISURE 11.6% Carnival Corp. ................................. 2,254 90,543 Darden Restaurants, Inc. ....................... 2,535 90,195 International Game Technology................... 1,964 68,229 Marriott International, Inc. -- Class A......... 2,542 87,191 McDonald's Corp. ............................... 1,534 91,396 Starbucks Corp.*................................ 4,659 75,616 Starwood Hotels & Resorts Worldwide, Inc. ...... 1,726 90,115 Wendy's International, Inc. .................... 3,603 104,487 Wyndham Worldwide Corp. ........................ 4,403 94,576 Yum! Brands, Inc. .............................. 2,294 93,320 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 885,668 ---------- HOUSEHOLD DURABLES 14.5% Black & Decker Corp. ........................... 1,300 85,319 Centex Corp. ................................... 3,751 78,096 D.R. Horton, Inc. .............................. 5,445 84,343 Fortune Brands, Inc. ........................... 1,306 88,312 Harman International Industries, Inc. .......... 1,964 80,269 KB HOME......................................... 3,649 82,102 Leggett & Platt, Inc. .......................... 5,591 92,810 Lennar Corp. -- Class A......................... 5,297 97,571 Newell Rubbermaid, Inc. ........................ 3,739 76,761 Pulte Homes, Inc. .............................. 6,393 83,365 Snap-on, Inc. .................................. 1,738 103,081 Stanley Works................................... 1,758 84,806 Whirlpool Corp. ................................ 1,006 73,217 ---------- TOTAL HOUSEHOLD DURABLES 1,110,052 ---------- INTERNET & CATALOG RETAIL 3.7% Amazon.com, Inc.*............................... 1,216 95,614 Expedia, Inc.*.................................. 4,049 102,278 IAC/InterActiveCorp*............................ 4,181 87,006 ---------- TOTAL INTERNET & CATALOG RETAIL 284,898 ---------- LEISURE EQUIPMENT & PRODUCTS 4.8% Brunswick Corp. ................................ 5,269 87,887 Eastman Kodak Co. .............................. 5,109 91,400 Hasbro, Inc. ................................... 3,107 110,485 Mattel, Inc. ................................... 4,091 76,706 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 366,478 ---------- MEDIA 17.8% CBS Corp. -- Class B............................ 3,769 86,951 Clear Channel Communications, Inc. ............. 2,635 79,445 Comcast Corp. -- Class A........................ 4,293 88,221 DIRECTV Group, Inc.*............................ 3,419 84,244 E.W. Scripps Co. -- Class A..................... 1,994 89,550 Gannett Co., Inc. .............................. 2,771 79,306 Interpublic Group of Cos., Inc.*................ 9,854 89,179 McGraw-Hill Cos., Inc. ......................... 2,324 95,261 Meredith Corp. ................................. 2,154 69,811 New York Times Co. -- Class A................... 4,403 85,858 News Corp. -- Class A........................... 4,493 80,425 Omnicom Group, Inc. ............................ 1,970 94,048 Time Warner, Inc. .............................. 5,845 86,798 Viacom, Inc. -- Class B*........................ 2,168 83,338 Walt Disney Co. ................................ 2,669 86,556 Washington Post Co. -- Class B.................. 128 83,917 ---------- TOTAL MEDIA 1,362,908 ---------- MULTILINE RETAIL 10.9% Big Lots, Inc.*................................. 4,021 108,688 Dillard's, Inc. -- Class A...................... 4,889 99,736 Family Dollar Stores, Inc. ..................... 4,445 95,123 J.C. Penney Co., Inc. .......................... 2,134 90,695 Kohl's Corp.*................................... 1,970 96,234 Macy's, Inc. ................................... 3,543 89,602 Nordstrom, Inc. ................................ 2,439 85,999 Sears Holdings Corp.*........................... 850 83,819 Target Corp. ................................... 1,642 87,239 ---------- TOTAL MULTILINE RETAIL 837,135 ---------- SPECIALTY RETAIL 19.3% Abercrombie & Fitch Co. -- Class A.............. 1,128 83,822 AutoNation, Inc.*............................... 5,709 91,401 AutoZone, Inc.*................................. 732 88,389 Bed Bath & Beyond, Inc.*........................ 2,715 88,237 Best Buy Co., Inc. ............................. 2,050 88,191 GameStop Corp. -- Class A*...................... 1,750 96,320 Gap, Inc. ...................................... 3,971 73,940 Home Depot, Inc. ............................... 3,083 88,790 Limited Brands, Inc. ........................... 5,079 94,063 Lowe's Cos., Inc. .............................. 3,747 94,387 Office Depot, Inc.*............................. 7,275 92,247 OfficeMax, Inc. ................................ 4,117 75,218 RadioShack Corp. ............................... 5,259 73,100 Sherwin-Williams Co. ........................... 1,536 84,972 Staples, Inc. .................................. 3,749 81,353 Tiffany & Co. .................................. 2,296 99,968 TJX Cos., Inc. ................................. 2,583 83,224 ---------- TOTAL SPECIALTY RETAIL 1,477,622 ---------- TEXTILES, APPAREL & LUXURY GOODS 7.0% Coach, Inc.*.................................... 2,925 104,042 Jones Apparel Group, Inc. ...................... 6,059 95,914 Liz Claiborne, Inc. ............................ 4,675 82,701 NIKE, Inc. -- Class B........................... 1,290 86,172
See Notes to Financial Statements. SEMI-ANNUAL REPORT 38 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Polo Ralph Lauren Corp. ........................ 1,422 $88,321 V.F. Corp. ..................................... 1,082 80,479 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 537,629 ---------- TOTAL COMMON STOCKS (Cost $9,882,944) 7,624,698 ---------- SHORT TERM INVESTMENTS 0.4% SSgA Prime Money Market Fund.................... 34,267 34,267 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $34,267) 34,267 ---------- TOTAL INVESTMENTS 100.0% (Cost $9,917,211) 7,658,965 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 41 ---------- NET ASSETS--100.0% $7,659,006 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 39 RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.6% BEVERAGES 19.4% Anheuser-Busch Cos., Inc. ...................... 6,640 $326,688 Brown-Forman Corp. -- Class B................... 4,600 312,892 Coca-Cola Co. .................................. 5,030 296,116 Coca-Cola Enterprises, Inc. .................... 12,510 281,475 Constellation Brands, Inc. -- Class A*.......... 16,070 295,045 Molson Coors Brewing Co. -- Class B............. 5,840 320,265 Pepsi Bottling Group, Inc. ..................... 9,080 306,087 PepsiCo, Inc. .................................. 4,320 296,050 ----------- TOTAL BEVERAGES 2,434,618 ----------- FOOD & STAPLES RETAILING 23.3% Costco Wholesale Corp. ......................... 4,900 349,125 CVS Caremark Corp. ............................. 7,720 311,656 Kroger Co. ..................................... 12,050 328,362 Safeway, Inc. .................................. 10,500 331,800 SUPERVALU, Inc. ................................ 10,790 357,149 Sysco Corp. .................................... 10,450 319,456 Wal-Mart Stores, Inc. .......................... 5,820 337,444 Walgreen Co. ................................... 8,390 292,392 Whole Foods Market, Inc. ....................... 9,490 309,754 ----------- TOTAL FOOD & STAPLES RETAILING 2,937,138 ----------- FOOD PRODUCTS 33.7% Archer-Daniels-Midland Co. ..................... 7,520 331,331 Campbell Soup Co. .............................. 9,230 321,204 ConAgra Foods, Inc. ............................ 13,790 324,892 Dean Foods Co. ................................. 15,280 355,107 General Mills, Inc. ............................ 5,090 307,436 H.J. Heinz Co. ................................. 6,790 319,334 Hershey Co. .................................... 8,130 303,899 Kellogg Co. .................................... 5,950 304,462 Kraft Foods, Inc. -- Class A.................... 9,940 314,402 McCormick & Co., Inc. .......................... 8,400 317,436 Sara Lee Corp. ................................. 23,420 339,824 Tyson Foods, Inc. -- Class A.................... 18,060 321,468 Wm. Wrigley Jr. Co. ............................ 4,940 376,231 ----------- TOTAL FOOD PRODUCTS 4,237,026 ----------- HOUSEHOLD PRODUCTS 9.3% Clorox Co. ..................................... 5,400 286,200 Colgate-Palmolive Co. .......................... 3,960 279,972 Kimberly-Clark Corp. ........................... 4,720 302,033 Procter & Gamble Co. ........................... 4,460 299,043 ----------- TOTAL HOUSEHOLD PRODUCTS 1,167,248 ----------- PERSONAL PRODUCTS 4.9% Avon Products, Inc. ............................ 7,690 300,064 Estee Lauder Cos., Inc -- Class A............... 6,870 313,341 ----------- TOTAL PERSONAL PRODUCTS 613,405 ----------- TOBACCO 9.0% Altria Group, Inc. ............................. 14,320 286,400 Philip Morris International, Inc.*.............. 5,640 287,809 Reynolds American, Inc. ........................ 5,030 270,866 UST, Inc. ...................................... 5,460 284,302 ----------- TOTAL TOBACCO 1,129,377 ----------- TOTAL COMMON STOCKS (Cost $11,963,073) 12,518,812 ----------- SHORT TERM INVESTMENTS 0.3% SSgA Prime Money Market Fund.................... 40,947 40,947 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $40,947) 40,947 ----------- TOTAL INVESTMENTS 99.9% (Cost $12,004,020) 12,559,759 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 7,273 ----------- NET ASSETS--100.0% $12,567,032 ------------------------------------------------------------------------
* Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 40 RYDEX S&P EQUAL WEIGHT ENERGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.6% ENERGY EQUIPMENT & SERVICES 37.4% Baker Hughes, Inc. ............................. 5,111 $413,378 BJ Services Co. ................................ 14,028 396,572 Cameron International Corp.*.................... 8,750 430,762 ENSCO International, Inc. ...................... 5,628 358,672 Halliburton Co. ................................ 9,449 433,804 Nabors Industries, Ltd.*........................ 11,167 419,209 National-Oilwell Varco, Inc.*................... 6,614 452,728 Noble Corp. .................................... 7,367 414,615 Rowan Cos., Inc. ............................... 9,369 365,297 Schlumberger, Ltd. ............................. 4,190 421,304 Smith International, Inc. ...................... 5,623 430,216 Transocean, Inc.*............................... 2,612 385,166 Weatherford International, Ltd.*................ 5,384 434,327 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 5,356,050 ----------- OIL, GAS & CONSUMABLE FUELS 62.2% Anadarko Petroleum Corp. ....................... 5,778 384,584 Apache Corp. ................................... 3,169 426,801 Chesapeake Energy Corp. ........................ 7,832 404,914 Chevron Corp. .................................. 4,093 393,542 ConocoPhillips.................................. 4,677 402,924 CONSOL Energy, Inc. ............................ 5,466 442,527 Devon Energy Corp. ............................. 3,594 407,560 El Paso Corp. .................................. 22,601 387,381 EOG Resources, Inc. ............................ 3,082 402,139 Exxon Mobil Corp. .............................. 4,015 373,676 Hess Corp. ..................................... 3,850 408,870 Marathon Oil Corp. ............................. 7,485 341,091 Murphy Oil Corp. ............................... 4,585 414,209 Noble Energy, Inc. ............................. 4,884 424,908 Occidental Petroleum Corp. ..................... 5,006 416,549 Peabody Energy Corp. ........................... 7,112 434,757 Range Resources Corp. .......................... 5,992 397,749 Spectra Energy Corp. ........................... 14,916 368,425 Sunoco, Inc. ................................... 6,150 285,422 Tesoro Corp. ................................... 11,278 283,529 Valero Energy Corp. ............................ 6,807 332,522 Williams Cos., Inc. ............................ 11,019 391,175 XTO Energy, Inc. ............................... 6,019 372,335 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 8,897,589 ----------- TOTAL COMMON STOCKS (Cost $11,904,212) 14,253,639 ----------- SHORT TERM INVESTMENTS 0.4% SSgA Prime Money Market Fund.................... 63,449 63,449 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $63,449) 63,449 ----------- TOTAL INVESTMENTS 100.0% (Cost $11,967,661) 14,317,088 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 384 ----------- NET ASSETS--100.0% $14,317,472 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 41 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.9% CAPITAL MARKETS 19.4% American Capital Strategies, Ltd. .............. 1,610 $51,117 Ameriprise Financial, Inc. ..................... 1,120 53,189 Bank of New York Mellon Corp. .................. 1,310 57,024 Bear Stearns Cos., Inc. ........................ 10,140 108,802 Charles Schwab Corp. ........................... 3,080 66,528 E*TRADE Financial Corp.*........................ 16,200 64,476 Federated Investors, Inc. -- Class B............ 1,460 48,881 Franklin Resources, Inc. ....................... 600 57,090 Goldman Sachs Group, Inc. ...................... 340 65,066 Janus Capital Group, Inc. ...................... 2,500 70,150 Legg Mason, Inc. ............................... 1,060 63,897 Lehman Brothers Holdings, Inc. ................. 1,330 58,839 Merrill Lynch & Co., Inc. ...................... 1,320 65,776 Morgan Stanley.................................. 1,280 62,208 Northern Trust Corp. ........................... 860 63,735 State Street Corp. ............................. 710 51,219 T. Rowe Price Group, Inc. ...................... 1,190 69,686 ---------- TOTAL CAPITAL MARKETS 1,077,683 ---------- COMMERCIAL BANKS 15.7% BB&T Corp. ..................................... 1,690 57,950 Comerica, Inc. ................................. 1,490 51,748 Fifth Third Bancorp............................. 2,540 54,432 First Horizon National Corp. ................... 3,480 37,584 Huntington Bancshares, Inc. .................... 5,330 50,049 KeyCorp......................................... 2,550 61,531 M&T Bank Corp. ................................. 690 64,329 Marshall & Ilsley Corp. ........................ 2,410 60,202 National City Corp. ............................ 5,760 36,288 PNC Financial Services Group, Inc. ............. 890 61,721 Regions Financial Corp. ........................ 2,790 61,157 SunTrust Banks, Inc. ........................... 970 54,078 U.S. Bancorp.................................... 1,700 57,613 Wachovia Corp. ................................. 1,970 57,425 Wells Fargo & Co. .............................. 1,800 53,550 Zions Bancorp................................... 1,190 55,157 ---------- TOTAL COMMERCIAL BANKS 874,814 ---------- CONSUMER FINANCE 4.6% American Express Co. ........................... 1,310 62,906 Capital One Financial Corp. .................... 1,120 59,360 Discover Financial Services..................... 3,600 65,556 SLM Corp.*...................................... 3,620 67,079 ---------- TOTAL CONSUMER FINANCE 254,901 ---------- DIVERSIFIED FINANCIAL SERVICES 10.3% Bank of America Corp. .......................... 1,450 54,433 CIT Group, Inc. ................................ 6,580 71,656 Citigroup, Inc. ................................ 2,690 67,976 CME Group, Inc. ................................ 120 54,894 IntercontinentalExchange, Inc.*................. 470 72,921 JPMorgan Chase & Co. ........................... 1,320 62,898 Leucadia National Corp. ........................ 1,310 67,098 Moody's Corp. .................................. 1,650 60,984 NYSE Euronext................................... 950 62,795 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 575,655 ---------- INSURANCE 26.3% ACE, Ltd. ...................................... 1,030 62,099 AFLAC, Inc. .................................... 900 60,003 Allstate Corp. ................................. 1,220 61,439 Ambac Financial Group, Inc. .................... 10,110 46,809 American International Group, Inc. ............. 1,320 60,984 Aon Corp. ...................................... 1,420 64,454 Assurant, Inc. ................................. 950 61,750 Chubb Corp. .................................... 1,170 61,975 Cincinnati Financial Corp. ..................... 1,490 53,491 Genworth Financial, Inc. -- Class A............. 2,540 58,572 Hartford Financial Services Group, Inc. ........ 800 57,016 Lincoln National Corp. ......................... 1,130 60,749 Loews Corp. .................................... 1,450 61,059 Marsh & McLennan Cos., Inc. .................... 2,300 63,457 MBIA, Inc. ..................................... 4,620 48,048 MetLife, Inc. .................................. 980 59,633 Principal Financial Group, Inc. ................ 1,070 57,416 Progressive Corp. .............................. 3,630 66,030 Prudential Financial, Inc. ..................... 790 59,811 SAFECO Corp. ................................... 1,340 89,432 Torchmark Corp. ................................ 960 62,150 Travelers Cos., Inc. ........................... 1,220 61,488 Unum Group...................................... 2,670 61,971 XL Capital, Ltd. -- Class A..................... 1,820 63,500 ---------- TOTAL INSURANCE 1,463,336 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) 15.4% Apartment Investment & Management Co. -- Class A............................................ 1,510 55,840 AvalonBay Communities, Inc. .................... 570 56,857 Boston Properties, Inc. ........................ 630 63,309 Developers Diversified Realty Corp. ............ 1,420 60,989 Equity Residential Properties Trust............. 1,410 58,543 General Growth Properties, Inc. ................ 1,650 67,584 HCP, Inc. ...................................... 1,730 61,761 Host Hotels & Resorts, Inc. .................... 3,650 62,780 Kimco Realty Corp. ............................. 1,570 62,659 Plum Creek Timber Co., Inc. .................... 1,420 57,993 ProLogis........................................ 980 61,358 Public Storage, Inc. ........................... 640 58,048 Simon Property Group, Inc. ..................... 620 61,913 Vornado Realty Trust............................ 700 65,163 ---------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 854,797 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT 1.3% CB Richard Ellis Group, Inc. -- Class A*........ 3,070 70,978 ---------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 70,978 ---------- THRIFTS & MORTGAGE FINANCE 6.9% Countrywide Financial Corp. .................... 10,530 60,863 Federal Home Loan Mortgage Corp. ............... 1,760 43,842 Federal National Mortgage Association........... 1,700 48,110
See Notes to Financial Statements. SEMI-ANNUAL REPORT 42 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Hudson City Bancorp, Inc. ...................... 3,170 $60,642 MGIC Investment Corp. .......................... 4,450 57,984 Sovereign Bancorp, Inc. ........................ 5,870 43,849 Washington Mutual, Inc. ........................ 5,690 69,930 ---------- TOTAL THRIFTS & MORTGAGE FINANCE 385,220 ---------- TOTAL COMMON STOCKS (Cost $7,167,747) 5,557,384 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 7,127 7,127 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $7,127) 7,127 ---------- TOTAL INVESTMENTS 100.0% (Cost $7,174,874) 5,564,511 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,631 ---------- NET ASSETS--100.0% $5,566,142 -----------------------------------------------------------------------
* 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 EQUAL WEIGHT HEALTH CARE ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 100.0% BIOTECHNOLOGY 9.9% Amgen, Inc.*.................................... 27,690 $1,159,380 Biogen Idec, Inc.*.............................. 18,732 1,136,845 Celgene Corp.*.................................. 19,146 1,189,733 Genzyme Corp.*.................................. 15,540 1,093,239 Gilead Sciences, Inc.*.......................... 22,886 1,184,579 ----------- TOTAL BIOTECHNOLOGY 5,763,776 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 21.1% Baxter International, Inc. ..................... 19,008 1,184,578 Becton, Dickinson & Co. ........................ 12,520 1,119,288 Boston Scientific Corp.*........................ 88,596 1,180,985 C.R. Bard, Inc. ................................ 11,120 1,047,170 Covidien, Ltd. ................................. 25,716 1,200,680 Hospira, Inc.*.................................. 25,640 1,055,086 Medtronic, Inc. ................................ 22,808 1,110,293 St Jude Medical, Inc.*.......................... 26,010 1,138,718 Stryker Corp. .................................. 17,336 1,123,893 Varian Medical Systems, Inc.*................... 23,626 1,107,587 Zimmer Holdings, Inc.*.......................... 14,054 1,042,245 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 12,310,523 ----------- HEALTH CARE PROVIDERS & SERVICES 29.8% Aetna, Inc. .................................... 25,782 1,124,095 AmerisourceBergen Corp. ........................ 26,730 1,083,902 Cardinal Health, Inc. .......................... 21,162 1,101,905 CIGNA Corp. .................................... 27,712 1,183,580 Coventry Health Care, Inc.*..................... 26,316 1,177,115 Express Scripts, Inc.*.......................... 18,052 1,264,001 Humana, Inc.*................................... 24,256 1,159,194 Laboratory Corp. of America Holdings*........... 14,814 1,120,235 McKesson Corp. ................................. 20,104 1,047,820 Medco Health Solutions, Inc.*................... 24,712 1,224,232 Patterson Cos., Inc.*........................... 30,708 1,050,214 Quest Diagnostics, Inc. ........................ 24,566 1,232,722 Tenet Healthcare Corp.*......................... 213,106 1,363,878 UnitedHealth Group, Inc. ....................... 31,310 1,021,645 WellPoint, Inc.*................................ 24,082 1,198,080 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 17,352,618 ----------- HEALTH CARE TECHNOLOGY 2.2% IMS Health, Inc. ............................... 52,002 1,287,050 ----------- TOTAL HEALTH CARE TECHNOLOGY 1,287,050 ----------- LIFE SCIENCES TOOLS & SERVICES 10.3% Applera Corp. -- Applied Biosystems Group....... 34,860 1,112,383 Millipore Corp.*................................ 16,510 1,157,351 PerkinElmer, Inc. .............................. 47,564 1,263,300 Thermo Electron Corp.*.......................... 20,388 1,179,853 Waters Corp.*................................... 20,868 1,282,547 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 5,995,434 ----------- PHARMACEUTICALS 26.7% Abbott Laboratories............................. 19,916 1,050,569 Allergan, Inc. ................................. 19,646 1,107,445 Barr Pharmaceuticals, Inc.*..................... 23,570 1,183,921 Bristol-Myers Squibb Co. ....................... 51,500 1,131,455 Eli Lilly & Co. ................................ 22,170 1,067,264 Forest Laboratories, Inc.*...................... 27,976 971,047 Johnson & Johnson............................... 16,890 1,133,150 King Pharmaceuticals, Inc.*..................... 125,916 1,182,351 Merck & Co., Inc. .............................. 25,544 971,694 Mylan Laboratories, Inc. ....................... 99,236 1,306,938 Pfizer, Inc. ................................... 53,576 1,077,413 Schering-Plough Corp. .......................... 54,344 1,000,473 Watson Pharmaceuticals, Inc.*................... 38,514 1,195,475 Wyeth........................................... 26,612 1,183,436 ----------- TOTAL PHARMACEUTICALS 15,562,631 ----------- TOTAL COMMON STOCKS (Cost $60,162,128) 58,272,032 ----------- SHORT TERM INVESTMENTS 0.0%(A) SSgA Prime Money Market Fund.................... 3,150 3,150 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $3,150) 3,150 ----------- TOTAL INVESTMENTS 100.0% (Cost $60,165,278) 58,275,182 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 5,494 ----------- NET ASSETS--100.0% $58,280,676 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 44 RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.6% AEROSPACE & DEFENSE 19.5% Boeing Co. ..................................... 3,080 $261,369 General Dynamics Corp. ......................... 2,670 241,421 Goodrich Corp. ................................. 3,860 263,059 Honeywell International, Inc. .................. 4,210 250,074 L-3 Communications Holdings, Inc. .............. 2,130 237,388 Lockheed Martin Corp. .......................... 2,270 240,711 Northrop Grumman Corp. ......................... 2,900 213,353 Precision Castparts Corp. ...................... 2,380 279,793 Raytheon Co. ................................... 3,610 230,932 Rockwell Collins, Inc. ......................... 4,220 266,324 United Technologies Corp. ...................... 3,300 239,151 ----------- TOTAL AEROSPACE & DEFENSE 2,723,575 ----------- AIR FREIGHT & LOGISTICS 7.1% C.H. Robinson Worldwide, Inc. .................. 4,170 261,376 Expeditors International of Washington, Inc. ... 5,350 249,256 FedEx Corp. .................................... 2,640 253,097 United Parcel Service, Inc. -- Class B.......... 3,170 229,540 ----------- TOTAL AIR FREIGHT & LOGISTICS 993,269 ----------- AIRLINES 1.8% Southwest Airlines Co. ......................... 18,910 250,368 ----------- TOTAL AIRLINES 250,368 ----------- BUILDING PRODUCTS 3.2% Masco Corp. .................................... 11,750 213,968 Trane, Inc. .................................... 5,010 233,015 ----------- TOTAL BUILDING PRODUCTS 446,983 ----------- COMMERCIAL SERVICES & SUPPLIES 15.5% Allied Waste Industries, Inc.*.................. 22,480 277,853 Avery Dennison Corp. ........................... 4,790 230,830 Cintas Corp. ................................... 7,910 234,215 Equifax, Inc. .................................. 6,670 255,261 Monster Worldwide, Inc.*........................ 9,590 233,325 Pitney Bowes, Inc. ............................. 6,430 232,187 R.R. Donnelley & Sons Co. ...................... 7,870 241,137 Robert Half International, Inc. ................ 9,030 214,011 Waste Management, Inc. ......................... 6,880 248,368 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 2,167,187 ----------- CONSTRUCTION & ENGINEERING 4.0% Fluor Corp. .................................... 1,760 269,051 Jacobs Engineering Group, Inc.*................. 3,300 284,889 ----------- TOTAL CONSTRUCTION & ENGINEERING 553,940 ----------- ELECTRICAL EQUIPMENT 5.2% Cooper Industries, Ltd. -- Class A.............. 6,070 257,307 Emerson Electric Co. ........................... 4,630 241,964 Rockwell Automation, Inc. ...................... 4,210 228,308 ----------- TOTAL ELECTRICAL EQUIPMENT 727,579 ----------- INDUSTRIAL CONGLOMERATES 6.7% 3M Co. ......................................... 2,910 223,779 General Electric Co. ........................... 6,150 201,105 Textron, Inc. .................................. 4,230 258,073 Tyco International, Ltd. ....................... 5,270 246,583 ----------- TOTAL INDUSTRIAL CONGLOMERATES 929,540 ----------- MACHINERY 25.4% Caterpillar, Inc. .............................. 3,070 251,372 Cummins, Inc. .................................. 4,690 293,829 Danaher Corp. .................................. 3,000 234,060 Deere & Co. .................................... 2,890 242,962 Dover Corp. .................................... 5,570 275,548 Eaton Corp. .................................... 2,860 251,222 Illinois Tool Works, Inc. ...................... 4,730 247,332 Ingersoll-Rand Co., Ltd. -- Class A............. 5,330 236,545 ITT Corp. ...................................... 4,320 276,480 Manitowoc Co., Inc. ............................ 6,010 227,298 PACCAR, Inc. ................................... 4,920 232,814 Pall Corp. ..................................... 6,160 214,183 Parker-Hannifin Corp. .......................... 3,530 281,871 Terex Corp.*.................................... 3,890 271,055 ----------- TOTAL MACHINERY 3,536,571 ----------- ROAD & RAIL 9.4% Burlington Northern Santa Fe Corp. ............. 2,510 257,401 CSX Corp. ...................................... 4,200 264,390 Norfolk Southern Corp. ......................... 4,320 257,386 Ryder System, Inc. ............................. 3,720 254,708 Union Pacific Corp. ............................ 1,860 270,053 ----------- TOTAL ROAD & RAIL 1,303,938 ----------- TRADING COMPANIES & DISTRIBUTORS 1.8% W.W. Grainger, Inc. ............................ 2,920 253,193 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 253,193 ----------- TOTAL COMMON STOCKS (Cost $12,572,154) 13,886,143 ----------- SHORT TERM INVESTMENTS 0.4% SSgA Prime Money Market Fund.................... 55,641 55,641 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $55,641) 55,641 ----------- TOTAL INVESTMENTS 100.0% (Cost $12,627,795) 13,941,784 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 4,920 ----------- NET ASSETS--100.0% $13,946,704 -----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 45 RYDEX S&P EQUAL WEIGHT MATERIALS ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------------- COMMON STOCKS 99.7% CHEMICALS 46.3% Air Products & Chemicals, Inc. ................. 1,042 $102,564 Ashland, Inc. .................................. 1,972 104,555 Dow Chemical Co. ............................... 2,427 97,444 Du Pont (E.I.) de Nemours & Co. ................ 1,988 97,233 Eastman Chemical Co. ........................... 1,456 107,016 Ecolab, Inc. ................................... 2,086 95,873 Hercules, Inc. ................................. 4,858 91,330 International Flavors & Fragrances, Inc. ....... 2,161 98,563 Monsanto Co. ................................... 927 105,697 PPG Industries, Inc. ........................... 1,532 94,019 Praxair, Inc. .................................. 1,122 102,450 Rohm & Haas Co. ................................ 1,682 89,903 Sigma-Aldrich Corp. ............................ 1,576 89,864 ---------- TOTAL CHEMICALS 1,276,511 ---------- CONSTRUCTION MATERIALS 3.8% Vulcan Materials Co. ........................... 1,501 103,299 ---------- TOTAL CONSTRUCTION MATERIALS 103,299 ---------- CONTAINERS & PACKAGING 14.3% Ball Corp. ..................................... 2,128 114,444 Bemis Co., Inc. ................................ 3,758 98,835 Pactiv Corp.*................................... 3,548 84,407 Sealed Air Corp. ............................... 3,818 96,557 ---------- TOTAL CONTAINERS & PACKAGING 394,243 ---------- METALS & MINING 25.4% Alcoa, Inc. .................................... 2,558 88,967 Allegheny Technologies, Inc. ................... 1,292 88,928 Freeport-McMoRan Copper & Gold, Inc. ........... 999 113,636 Newmont Mining Corp. ........................... 1,832 80,993 Nucor Corp. .................................... 1,328 100,264 Titanium Metals Corp. .......................... 6,937 105,720 United States Steel Corp. ...................... 784 120,697 ---------- TOTAL METALS & MINING 699,205 ---------- PAPER & FOREST PRODUCTS 9.9% International Paper Co. ........................ 3,270 85,576 MeadWestvaco Corp. ............................. 3,453 90,814 Weyerhaeuser Co. ............................... 1,492 95,309 ---------- TOTAL PAPER & FOREST PRODUCTS 271,699 ---------- TOTAL COMMON STOCKS (Cost $3,059,531) 2,744,957 ---------- SHORT TERM INVESTMENTS 0.2% SSgA Prime Money Market Fund.................... 6,360 6,360 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $6,360) 6,360 ---------- TOTAL INVESTMENTS 99.9% (Cost $3,065,891) 2,751,317 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 3,611 ---------- NET ASSETS--100.0% $2,754,928 -----------------------------------------------------------------------
*Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 46 RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------ COMMON STOCKS 99.9% COMMUNICATIONS EQUIPMENT 11.2% Ciena Corp.*.................................... 9,404 $317,949 Cisco Systems, Inc.*............................ 11,004 282,143 Corning, Inc. .................................. 11,492 306,951 JDS Uniphase Corp.*............................. 20,886 298,879 Juniper Networks, Inc.*......................... 11,300 312,106 Motorola, Inc. ................................. 29,879 297,595 QUALCOMM, Inc. ................................. 7,228 312,177 Tellabs, Inc.*.................................. 48,792 251,767 ----------- TOTAL COMMUNICATIONS EQUIPMENT 2,379,567 ----------- COMPUTERS & PERIPHERALS 15.4% Apple, Inc.*.................................... 2,101 365,469 Dell, Inc.*..................................... 13,829 257,634 EMC Corp.*...................................... 19,242 296,327 Hewlett-Packard Co. ............................ 5,826 270,035 International Business Machines Corp. .......... 2,346 283,162 Lexmark International, Inc. -- Class A*......... 8,918 279,936 NetApp, Inc.*................................... 14,043 339,841 QLogic Corp.*................................... 18,088 288,684 SanDisk Corp.*.................................. 13,684 370,700 Sun Microsystems, Inc.*......................... 17,363 271,905 Teradata Corp.*................................. 11,843 252,137 ----------- TOTAL COMPUTERS & PERIPHERALS 3,275,830 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 5.6% Agilent Technologies, Inc.*..................... 9,417 284,488 Jabil Circuit, Inc. ............................ 23,193 252,340 Molex, Inc. .................................... 12,081 342,859 Tyco Electronics, Ltd. ......................... 8,518 318,658 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,198,345 ----------- INTERNET SOFTWARE & SERVICES 7.5% Akamai Technologies, Inc.*...................... 9,349 334,414 eBay, Inc.*..................................... 9,855 308,363 Google, Inc. -- Class A*........................ 652 374,437 VeriSign, Inc.*................................. 8,050 290,202 Yahoo!, Inc.*................................... 10,153 278,294 ----------- TOTAL INTERNET SOFTWARE & SERVICES 1,585,710 ----------- IT SERVICES 16.7% Affiliated Computer Services, Inc. -- Class A*.. 5,791 306,749 Automatic Data Processing, Inc. ................ 6,786 299,941 Cognizant Technology Solutions Corp. -- Class A*........................................... 9,931 320,275 Computer Sciences Corp.*........................ 6,864 299,202 Convergys Corp.*................................ 18,292 287,550 Electronic Data Systems Corp. .................. 16,926 314,146 Fidelity National Information Services, Inc. ... 7,214 260,137 Fiserv, Inc.*................................... 5,676 286,922 Paychex, Inc. .................................. 8,517 309,763 Total System Services, Inc. .................... 12,286 292,407 Unisys Corp.*................................... 65,541 272,651 Western Union Co. .............................. 12,494 287,362 ----------- TOTAL IT SERVICES 3,537,105 ----------- OFFICE ELECTRONICS 1.2% Xerox Corp. .................................... 18,256 255,036 ----------- TOTAL OFFICE ELECTRONICS 255,036 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 26.0% Advanced Micro Devices, Inc.*................... 44,518 265,327 Altera Corp. ................................... 15,235 324,201 Analog Devices, Inc. ........................... 9,898 318,815 Applied Materials, Inc. ........................ 13,094 244,334 Broadcom Corp. -- Class A*...................... 16,333 424,005 Intel Corp. .................................... 12,696 282,613 KLA-Tencor Corp. ............................... 7,750 338,520 Linear Technology Corp. ........................ 8,912 311,563 LSI Logic Corp.*................................ 54,719 339,258 MEMC Electronic Materials, Inc.*................ 3,362 211,705 Microchip Technology, Inc. ..................... 8,282 304,363 Micron Technology, Inc.*........................ 46,943 362,400 National Semiconductor Corp. ................... 15,351 313,007 Novellus Systems, Inc.*......................... 12,915 282,322 NVIDIA Corp.*................................... 15,347 315,381 Teradyne, Inc.*................................. 22,995 305,604 Texas Instruments, Inc. ........................ 9,738 283,960 Xilinx, Inc. ................................... 11,434 283,220 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 5,510,598 ----------- SOFTWARE 16.3% Adobe Systems, Inc.*............................ 7,950 296,455 Autodesk, Inc.*................................. 8,620 327,560 BMC Software, Inc.*............................. 8,442 293,444 CA, Inc. ....................................... 12,402 274,580 Citrix Systems, Inc.*........................... 8,618 282,239 Compuware Corp.*................................ 36,201 272,956 Electronic Arts, Inc.*.......................... 5,740 295,438 Intuit, Inc.*................................... 10,246 276,335 Microsoft Corp. ................................ 9,498 270,883 Novell, Inc.*................................... 45,785 287,530 Oracle Corp.*................................... 13,864 289,064 Symantec Corp.*................................. 16,445 283,183 ----------- TOTAL SOFTWARE 3,449,667 ----------- TOTAL COMMON STOCKS (Cost $23,671,957)...................................... 21,191,858 ----------- 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 $23,672,057) 21,191,958 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 17,525 ----------- NET ASSETS--100.0% $21,209,483 ------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 47 RYDEX S&P EQUAL WEIGHT UTILITIES ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS 99.8% DIVERSIFIED TELECOMMUNICATION SERVICES 17.1% AT&T, Inc. ..................................... 3,580 $138,582 CenturyTel, Inc. ............................... 3,890 126,230 Citizens Communications Co. .................... 12,319 132,060 Embarq Corp. ................................... 3,340 138,844 Qwest Communications International, Inc. ....... 28,348 146,276 Verizon Communications, Inc. ................... 3,680 141,606 Windstream Corp. ............................... 10,799 126,780 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 950,378 ---------- ELECTRIC UTILITIES 32.0% Allegheny Energy, Inc. ......................... 2,680 144,184 American Electric Power Co., Inc. .............. 3,200 142,816 Duke Energy Corp. .............................. 7,239 132,546 Edison International............................ 2,690 140,337 Entergy Corp. .................................. 1,240 142,426 Exelon Corp. ................................... 1,620 138,478 FirstEnergy Corp. .............................. 1,890 142,960 FPL Group, Inc. ................................ 2,150 142,523 Pepco Holdings, Inc. ........................... 5,270 131,276 Pinnacle West Capital Corp. .................... 3,630 123,202 PPL Corp. ...................................... 2,820 135,416 Progress Energy, Inc. .......................... 3,130 131,429 Southern Co. ................................... 3,650 135,890 ---------- TOTAL ELECTRIC UTILITIES 1,783,483 ---------- GAS UTILITIES 5.2% Nicor, Inc. .................................... 3,900 136,968 Questar Corp. .................................. 2,410 149,492 ---------- TOTAL GAS UTILITIES 286,460 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 7.5% AES Corp.*...................................... 8,119 140,946 Constellation Energy Group, Inc. ............... 1,540 130,361 Dynegy, Inc. -- Class A*........................ 17,019 146,704 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 418,011 ---------- MULTI-UTILITIES 32.2% Ameren Corp. ................................... 3,010 $136,534 CenterPoint Energy, Inc. ....................... 9,209 140,161 CMS Energy Corp. ............................... 9,429 137,475 Consolidated Edison, Inc. ...................... 3,200 133,120 Dominion Resources, Inc. ....................... 3,210 139,282 DTE Energy Co. ................................. 3,320 133,829 Integrys Energy Group, Inc. .................... 2,870 137,444 NiSource, Inc. ................................. 7,419 132,800 PG&E Corp. ..................................... 3,530 141,200 Public Service Enterprise Group, Inc. .......... 3,130 137,438 Sempra Energy................................... 2,620 148,475 TECO Energy, Inc. .............................. 8,659 138,631 Xcel Energy, Inc. .............................. 6,480 134,784 ---------- TOTAL MULTI-UTILITIES 1,791,173 ---------- WIRELESS TELECOMMUNICATION SERVICES 5.8% American Tower Corp. -- Class A*................ 3,320 144,154 Sprint Nextel Corp. ............................ 22,528 179,999 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 324,153 ---------- TOTAL COMMON STOCKS (Cost $5,778,662) 5,553,658 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Prime Money Market Fund.................... 3,474 3,474 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $3,474) 3,474 ---------- TOTAL INVESTMENTS 99.9% (Cost $5,782,136) 5,557,132 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 8,251 ---------- NET ASSETS--100.0% $5,565,383 ----------------------------------------------------------------------
*Non-Income Producing Security. See Notes to Financial Statements. SEMI-ANNUAL REPORT 48 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P MIDCAP 400 MIDCAP 400 SMALLCAP 500 PURE 500 PURE PURE VALUE PURE GROWTH 600 PURE VALUE ETF GROWTH ETF ETF ETF VALUE ETF ----------- ----------- ----------- ----------- ----------- ASSETS Investments at Market Value*....... $27,168,107 $49,380,147 $14,382,162 $16,539,070 $26,821,499 Cash............................... 16 -- -- -- -- Receivables: Dividends........................ 32,725 22,765 20,808 2,066 21,791 ----------- ----------- ----------- ----------- ----------- TOTAL ASSETS.................. 27,200,848 49,402,912 14,402,970 16,541,136 26,843,290 ----------- ----------- ----------- ----------- ----------- LIABILITIES Payables: Accrued Management Fees.......... 7,795 13,942 4,047 4,636 7,887 ----------- ----------- ----------- ----------- ----------- TOTAL LIABILITIES............. 7,795 13,942 4,047 4,636 7,887 ----------- ----------- ----------- ----------- ----------- NET ASSETS......................... $27,193,053 $49,388,970 $14,398,923 $16,536,500 $26,835,403 =========== =========== =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.................... $33,210,084 $52,119,954 $16,989,519 $18,314,997 $33,574,256 Undistributed Net Investment Income/(Loss).................... 52,042 13,047 29,479 (2,478) 62,548 Accumulated Net Realized Loss on Investments...................... (283,927) (759,344) (137,369) (579,053) (2,490,461) Net Unrealized Depreciation on Investments...................... (5,785,146) (1,984,687) (2,482,706) (1,196,966) (4,310,940) ----------- ----------- ----------- ----------- ----------- NET ASSETS......................... $27,193,053 $49,388,970 $14,398,923 $16,536,500 $26,835,403 =========== =========== =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value............................ 950,550 1,350,065 450,121 300,011 850,034 =========== =========== =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share....... $ 28.61 $ 36.58 $ 31.99 $ 55.12 $ 31.57 =========== =========== =========== =========== =========== *Total Cost of Investments......... $32,953,253 $51,364,834 $16,864,868 $17,736,036 $31,132,439 =========== =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 49 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P SMALLCAP 600 CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF ENERGY ETF FINANCIALS ETF --------------- ----------------- ------------ ------------ -------------- ASSETS Investments at Market Value*.. $5,765,475 $ 7,658,965 $12,559,759 $14,317,088 $ 5,564,511 Cash.......................... -- -- -- 23 -- Receivables: Dividends................... 1,127 5,206 12,393 6,174 3,892 ---------- ----------- ----------- ----------- ----------- TOTAL ASSETS............. 5,766,602 7,664,171 12,572,152 14,323,285 5,568,403 ---------- ----------- ----------- ----------- ----------- LIABILITIES Payables: Accrued Management Fees..... 1,640 5,165 5,120 5,813 2,261 ---------- ----------- ----------- ----------- ----------- TOTAL LIABILITIES........ 1,640 5,165 5,120 5,813 2,261 ---------- ----------- ----------- ----------- ----------- NET ASSETS.................... $5,764,962 $ 7,659,006 $12,567,032 $14,317,472 $ 5,566,142 ========== =========== =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital............... $6,693,841 $10,831,213 $12,058,381 $11,665,009 $ 7,361,096 Undistributed Net Investment Income/(Loss)............... (343) 4,479 14,211 (318) 9,131 Accumulated Net Realized Gain/(Loss) on Investments.. (307,791) (918,440) (61,299) 303,354 (193,722) Net Unrealized Appreciation/(Depreciation) on Investments.............. (620,745) (2,258,246) 555,739 2,349,427 (1,610,363) ---------- ----------- ----------- ----------- ----------- NET ASSETS.................... $5,764,962 $ 7,659,006 $12,567,032 $14,317,472 $ 5,566,142 ========== =========== =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value....................... 150,004 200,000 250,000 200,005 150,000 ========== =========== =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................... $ 38.43 $ 38.30 $ 50.27 $ 71.59 $ 37.11 ========== =========== =========== =========== =========== *Total Cost of Investments.... $6,386,220 $ 9,917,211 $12,004,020 $11,967,661 $ 7,174,874 ========== =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 50 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (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*... $58,275,182 $13,941,784 $2,751,317 $21,191,958 $5,557,132 Cash........................... -- -- -- -- 10 Receivables: Investments Sold............. -- -- -- 22,981 -- Dividends.................... 24,555 10,504 5,204 4,998 10,487 ----------- ----------- ---------- ----------- ---------- TOTAL ASSETS.............. 58,299,737 13,952,288 2,756,521 21,219,937 5,567,629 ----------- ----------- ---------- ----------- ---------- LIABILITIES Payables: Due to Custodian............. -- -- -- 548 -- Accrued Management Fees...... 19,061 5,584 1,593 9,906 2,246 ----------- ----------- ---------- ----------- ---------- TOTAL LIABILITIES......... 19,061 5,584 1,593 10,454 2,246 ----------- ----------- ---------- ----------- ---------- NET ASSETS..................... $58,280,676 $13,946,704 $2,754,928 $21,209,483 $5,565,383 =========== =========== ========== =========== ========== NET ASSETS CONSIST OF: Paid-in Capital................ $60,342,145 $12,525,672 $3,153,327 $24,096,392 $5,735,156 Undistributed Net Investment Income/(Loss)................ 4,334 5,299 6,720 (6,412) 13,795 Accumulated Net Realized Gain/(Loss) on Investments... (175,707) 101,744 (90,545) (400,398) 41,436 Net Unrealized Appreciation/(Depreciation) on Investments............... (1,890,096) 1,313,989 (314,574) (2,480,099) (225,004) ----------- ----------- ---------- ----------- ---------- NET ASSETS..................... $58,280,676 $13,946,704 $2,754,928 $21,209,483 $5,565,383 =========== =========== ========== =========== ========== Shares Outstanding (Unlimited Shares Authorized), No Par Value........................ 1,100,000 250,000 50,000 450,000 100,000 =========== =========== ========== =========== ========== Net Asset Value, Offering Price and Repurchase Price Per Share........................ $ 52.98 $ 55.79 $ 55.10 $ 47.13 $ 55.65 =========== =========== ========== =========== ========== *Total Cost of Investments..... $60,165,278 $12,627,795 $3,065,891 $23,672,057 $5,782,136 =========== =========== ========== =========== ==========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 51 STATEMENTS OF OPERATIONS For the Six-Months Ended April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P 500 PURE 500 PURE MIDCAP 400 MIDCAP 400 SMALLCAP 600 VALUE ETF GROWTH ETF PURE VALUE ETF PURE GROWTH ETF PURE VALUE ETF ----------- ----------- -------------- --------------- -------------- INVESTMENT INCOME Dividends................... $ 619,435 $ 214,577 $ 230,980 $ 36,513 $ 326,702 Foreign Taxes Withheld...... -- -- -- -- (355) ----------- ----------- ----------- ----------- ----------- Total Income............. 619,435 214,577 230,980 36,513 326,347 ----------- ----------- ----------- ----------- ----------- EXPENSES Management Fee.............. 55,771 87,741 26,427 30,992 39,994 ----------- ----------- ----------- ----------- ----------- Net Investment Income......... 563,664 126,836 204,553 5,521 286,353 ----------- ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain/(Loss) From: Investments................. (272,835) (403,696) (10,160) (554,428) (2,267,588) In-kind Redemptions......... (659,099) 2,995,646 (164,386) 1,463,975 607,023 ----------- ----------- ----------- ----------- ----------- Net Realized Gain/(Loss)............ (931,934) 2,591,950 (174,546) 909,547 (1,660,565) Net Change in Unrealized Depreciation on Investments................. (5,552,665) (7,314,696) (2,020,763) (2,245,128) (1,590,350) ----------- ----------- ----------- ----------- ----------- Net Realized and Unrealized Loss on Investments......... (6,484,599) (4,722,746) (2,195,309) (1,335,581) (3,250,915) ----------- ----------- ----------- ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $(5,920,935) $(4,595,910) $(1,990,756) $(1,330,060) $(2,964,562) =========== =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 52 STATEMENTS OF OPERATIONS For the Six-Months Ended April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P SMALLCAP 600 CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF ENERGY ETF FINANCIALS ETF --------------- ----------------- ------------ ------------ -------------- INVESTMENT INCOME Dividends..................... $ 35,004 $ 173,785 $ 98,915 $ 63,229 $ 94,504 ----------- ----------- --------- ---------- ----------- Total Income............... 35,004 173,785 98,915 63,229 94,504 ----------- ----------- --------- ---------- ----------- EXPENSES Management Fee................ 11,819 43,110 22,237 33,920 14,539 ----------- ----------- --------- ---------- ----------- Net Investment Income........... 23,185 130,675 76,678 29,309 79,965 ----------- ----------- --------- ---------- ----------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain/(Loss) From: Investments................... (255,659) (915,584) 19,236 314,607 (162,551) In-kind Redemptions........... 573,585 (846,883) -- 751,134 -- ----------- ----------- --------- ---------- ----------- Net Realized Gain/(Loss)... 317,926 (1,762,467) 19,236 1,065,741 (162,551) Net Change in Unrealized Depreciation on Investments... (1,530,065) (1,303,954) (151,947) (262,124) (1,280,258) ----------- ----------- --------- ---------- ----------- Net Realized and Unrealized Gain/(Loss) on Investments.... (1,212,139) (3,066,421) (132,711) 803,617 (1,442,809) ----------- ----------- --------- ---------- ----------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............... $(1,188,954) $(2,935,746) $ (56,033) $ 832,926 $(1,362,844) =========== =========== ========= ========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 STATEMENTS OF OPERATIONS For the Six-Months Ended April 30, 2008 (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...................... $ 83,671 $ 75,349 $ 139,251 $ 59,740 $ 100,637 ----------- -------- --------- ----------- --------- Total Income................ 83,671 75,349 139,251 59,740 100,637 ----------- -------- --------- ----------- --------- EXPENSES Management Fee................. 57,900 24,014 18,463 52,110 14,296 ----------- -------- --------- ----------- --------- Net Investment Income............ 25,771 51,335 120,788 7,630 86,341 ----------- -------- --------- ----------- --------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain/(Loss) From: Investments.................... (155,495) 113,961 (78,067) (376,413) 43,622 In-kind Redemptions............ 234,475 -- 317,838 448,019 -- ----------- -------- --------- ----------- --------- Net Realized Gain........... 78,980 113,961 239,771 71,606 43,622 Net Change in Unrealized Appreciation/(Depreciation) on Investments.................... (1,742,759) 37,578 (853,015) (2,974,655) (706,941) ----------- -------- --------- ----------- --------- Net Realized and Unrealized Gain/(Loss) on Investments..... (1,663,779) 151,539 (613,244) (2,903,049) (663,319) ----------- -------- --------- ----------- --------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................ $(1,638,008) $202,874 $(492,456) $(2,895,419) $(576,978) =========== ======== ========= =========== =========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 54 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF --------------------------------- --------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 -------------- ---------------- -------------- ---------------- OPERATIONS Net Investment Income............... $ 563,664 $ 782,512 $ 126,836 $ 287,779 Net Realized Gain/(Loss)............ (931,934) 1,498,971 2,591,950 (303,897) Net Change in Unrealized Appreciation/(Depreciation) on Investments...................... (5,552,665) (1,243,457) (7,314,696) 4,763,550 ------------ ------------ ------------ ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations....................... (5,920,935) 1,038,026 (4,595,910) 4,747,432 ------------ ------------ ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income............... (582,663) (763,947) (129,003) (279,098) ------------ ------------ ------------ ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........... 6,014,981 30,026,191 13,294,295 41,220,808 Value of Shares Reinvested.......... 10,755 6,721 893 1,567 Value of Shares Repurchased......... (11,963,950) (11,904,315) (22,521,342) -- ------------ ------------ ------------ ----------- Net Increase/(Decrease) in Net Assets Resulting From Share Transactions..................... (5,938,214) 18,128,597 (9,226,154) 41,222,375 ------------ ------------ ------------ ----------- Increase/(Decrease) in Net Assets......................... (12,441,812) 18,402,676 (13,951,067) 45,690,709 NET ASSETS--BEGINNING OF PERIOD....... 39,634,865 21,232,189 63,340,037 17,649,328 ------------ ------------ ------------ ----------- NET ASSETS--END OF PERIOD(1).......... $ 27,193,053 $ 39,634,865 $ 49,388,970 $63,340,037 ============ ============ ============ =========== (1) Including Undistributed Net Investment Income................... $ 52,042 $ 71,041 $ 13,047 $ 15,214 ============ ============ ============ =========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................... 200,000 850,000 350,000 1,100,000 Shares Reinvested................... 358 192 24 41 Shares Repurchased.................. (400,000) (350,000) (600,000) -- Shares Outstanding, Beginning of Period........................... 1,150,192 650,000 1,600,041 500,000 ------------ ------------ ------------ ----------- Shares Outstanding, End of Period... 950,550 1,150,192 1,350,065 1,600,041 ============ ============ ============ ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 55 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 PURE VALUE RYDEX S&P MIDCAP 400 PURE GROWTH ETF ETF --------------------------------- --------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 -------------- ---------------- -------------- ---------------- OPERATIONS Net Investment Income............... $ 204,553 $ 431,034 $ 5,521 $ 121,930 Net Realized Gain/(Loss)............ (174,546) 1,170,195 909,547 1,847,506 Net Change in Unrealized Appreciation/(Depreciation) on Investments...................... (2,020,763) (1,114,000) (2,245,128) 2,040,810 ----------- ------------ ------------ ------------ Net Increase/(Decrease) in Net Assets Resulting From Operations....................... (1,990,756) 487,229 (1,330,060) 4,010,246 ----------- ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income............... (182,927) (425,129) (13,818) (118,480) Net Realized Gains.................. -- -- -- (64,208) ----------- ------------ ------------ ------------ Total Distributions................. (182,927) (425,129) (13,818) (182,688) ----------- ------------ ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........... -- 20,533,730 10,426,073 8,630,176 Value of Shares Reinvested.......... 1,369 2,802 170 432 Value of Shares Repurchased......... (4,886,391) (14,113,540) (13,460,071) (14,090,678) ----------- ------------ ------------ ------------ Net Increase/(Decrease) in Net Assets Resulting From Share Transactions..................... (4,885,022) 6,422,992 (3,033,828) (5,460,070) ----------- ------------ ------------ ------------ Increase/(Decrease) in Net Assets......................... (7,058,705) 6,485,092 (4,377,706) (1,632,512) NET ASSETS--BEGINNING OF PERIOD....... 21,457,628 14,972,536 20,914,206 22,546,718 ----------- ------------ ------------ ------------ NET ASSETS--END OF PERIOD(1).......... $14,398,923 $ 21,457,628 $ 16,536,500 $ 20,914,206 =========== ============ ============ ============ (1) Including Undistributed Net Investment Income................... $ 29,479 $ 7,853 $ (2,478) $ 5,819 =========== ============ ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Sold......................... -- 550,000 200,000 150,000 Shares Reinvested................... 43 78 3 8 Shares Repurchased.................. (150,000) (400,000) (250,000) (250,000) Shares Outstanding, Beginning of Period........................... 600,078 450,000 350,008 450,000 ----------- ------------ ------------ ------------ Shares Outstanding, End of Period... 450,121 600,078 300,011 350,008 =========== ============ ============ ============
See Notes to Financial Statements. SEMI-ANNUAL REPORT 56 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 RYDEX S&P SMALLCAP 600 PURE VALUE ETF PURE GROWTH ETF ----------------------------------- ----------------------------------- SIX MONTHS ENDED SIX MONTHS ENDED APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income.......... $ 286,353 $ 341,437 $ 23,185 $ 189 Net Realized Gain/(Loss)....... (1,660,565) (164,386) 317,926 470,249 Net Change in Unrealized Appreciation/(Depreciation) on Investments.............. (1,590,350) (2,989,872) (1,530,065) 855,709 ----------- ----------- ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations.................. (2,964,562) (2,812,821) (1,188,954) 1,326,147 ----------- ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.......... (223,805) (304,472) (23,528) (4,792) Capital........................ -- (9,172) -- -- ----------- ----------- ----------- ----------- Total Distributions to Shareholders................ (223,805) (313,644) (23,528) (4,792) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold...... 12,729,553 21,411,904 -- 4,219,106 Value of Shares Reinvested..... 433 883 111 44 Value of Shares Repurchased.... (5,132,560) (1,879,073) (4,251,773) (2,131,084) ----------- ----------- ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Share Transactions................ 7,597,426 19,533,714 (4,251,662) 2,088,066 ----------- ----------- ----------- ----------- Increase/Decrease in Net Assets.................... 4,409,059 16,407,249 (5,464,144) 3,409,421 NET ASSETS--BEGINNING OF PERIOD.. 22,426,344 6,019,095 11,229,106 7,819,685 ----------- ----------- ----------- ----------- NET ASSETS--END OF PERIOD(1)..... $26,835,403 $22,426,344 $ 5,764,962 $11,229,106 =========== =========== =========== =========== (1) Including Undistributed/(Overdistrib- uted) Net Investment Income.. $ 62,548 $ -- $ (343) $ -- =========== =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold.................... 400,000 500,000 -- 100,000 Shares Reinvested.............. 13 21 3 1 Shares Repurchased............. (150,000) (50,000) (100,000) (50,000) Shares Outstanding, Beginning of Period................... 600,021 150,000 250,001 200,000 ----------- ----------- ----------- ----------- Shares Outstanding, End of Period...................... 850,034 600,021 150,004 250,001 =========== =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 57 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF CONSUMER STAPLES ETF ------------------------------------ ------------------------------------ FOR THE PERIOD FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income........ $ 130,675 $ 256,800 $ 76,678 $ 173,946 Net Realized Gain/(Loss)..... (1,762,467) (3,021,999) 19,236 (50,768) Net Change in Unrealized Appreciation/(Deprecia- tion) on Investments...... (1,303,954) (954,292) (151,947) 707,686 ------------ ------------- ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations................ (2,935,746) (3,719,491) (56,033) 830,864 ------------ ------------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income........ (136,167) (246,829) (70,088) (166,325) ------------ ------------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.... 45,856,438 164,688,912 4,791,047 9,840,904 Value of Shares Reinvested... -- -- -- -- Value of Shares Repurchased.. (64,053,450) (131,794,661) -- (2,603,337) ------------ ------------- ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Share Transactions........ (18,197,012) 32,894,251 4,791,047 7,237,567 ------------ ------------- ----------- ----------- Increase/(Decrease) in Net Assets.................. (21,268,925) 28,927,931 4,664,926 7,902,106 NET ASSETS--BEGINNING OF PERIOD....................... 28,927,931 -- 7,902,106 -- ------------ ------------- ----------- ----------- NET ASSETS--END OF PERIOD(1)... $ 7,659,006 $ 28,927,931 $12,567,032 $ 7,902,106 ============ ============= =========== =========== (1) Including Undistributed Net Investment Income...................... $ 4,479 $ 9,971 $ 14,211 $ 7,621 ============ ============= =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold.................. 1,150,000 3,550,000 100,000 200,000 Shares Reinvested............ -- -- -- -- Shares Repurchased........... (1,600,000) (2,900,000) -- (50,000) Shares Outstanding, Beginning of Period................. 650,000 -- 150,000 -- ------------ ------------- ----------- ----------- Shares Outstanding, End of Period.................... 200,000 650,000 250,000 150,000 ============ ============= =========== ===========
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 58 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL RYDEX S&P EQUAL WEIGHT ENERGY ETF WEIGHT FINANCIALS ETF ---------------------------------- ---------------------------------- SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED NOVEMBER 1, 2006* ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 -------------- ----------------- -------------- ----------------- OPERATIONS Net Investment Income............ $ 29,309 $ 39,906 $ 79,965 $ 105,693 Net Realized Gain/(Loss)......... 1,065,741 260,240 (162,551) 393,350 Net Change in Unrealized Appreciation/(Depreciation) on Investments................... (262,124) 2,611,551 (1,280,258) (330,105) ----------- ----------- ----------- ------------ Net Increase/(Decrease) in Net Assets Resulting From Operations.................... 832,926 2,911,697 (1,362,844) 168,938 ----------- ----------- ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income............ (29,627) (42,062) (70,834) (98,785) Net Realized Gains............... (269,337) -- -- -- ----------- ----------- ----------- ------------ Total Distributions.............. (298,964) -- -- -- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........ 6,873,049 7,251,932 -- 31,922,837 Value of Shares Reinvested....... 343 -- -- -- Value of Shares Repurchased...... (3,211,449) -- -- (24,993,170) ----------- ----------- ----------- ------------ Net Increase in Net Assets Resulting From Share Transactions.................. 3,661,943 7,251,932 (1,433,678) 6,929,667 ----------- ----------- ----------- ------------ Increase/(Decrease) in Net Assets...................... 4,195,905 10,121,567 -- 6,999,820 NET ASSETS--BEGINNING OF PERIOD.... 10,121,567 -- 6,999,820 -- ----------- ----------- ----------- ------------ NET ASSETS--END OF PERIOD(1)....... $14,317,472 $10,121,567 $ 5,566,142 $ 6,999,820 =========== =========== =========== ============ (1) Including Undistributed/(Overdistributed) Net Investment Income/(Loss)... $ (318) $ -- $ 9,131 $ -- =========== =========== =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Sold...................... 100,000 150,000 -- 650,000 Shares Reinvested................ 5 -- -- -- Shares Repurchased............... (50,000) -- -- (500,000) Shares Outstanding, Beginning of Period........................ 150,000 -- 150,000 -- ----------- ----------- ----------- ------------ Shares Outstanding, End of Period........................ 200,005 150,000 150,000 150,000 =========== =========== =========== ============
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 59 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF WEIGHT INDUSTRIALS ETF ---------------------------------- ------------------------------------ SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED NOVEMBER 1, 2006* ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 -------------- ----------------- -------------- ----------------- OPERATIONS Net Investment Income............ $ 25,771 $ 39,168 $ 51,335 $ 84,478 Net Realized Gain................ 78,980 1,090,098 113,961 253,601 Net Change in Unrealized Appreciation/(Depreciation) on Investments................... (1,742,759) (147,337) 37,578 1,276,411 ----------- ------------ ----------- ---------- Net Increase/(Decrease) in Net Assets Resulting From Operations.................... (1,638,008) 981,929 202,874 1,614,490 ----------- ------------ ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income............ (23,602) (37,003) (47,983) (81,906) Net Realized Gains............... -- -- (266,443) -- ----------- ------------ ----------- ---------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........ 48,158,532 36,174,181 5,153,009 7,372,663 Value of Shares Reinvested....... -- -- -- -- Value of Shares Repurchased...... (5,598,834) (19,736,519) -- -- ----------- ------------ ----------- ---------- Net Increase in Net Assets Resulting From Share Transactions.................. 42,559,698 16,437,662 5,153,009 7,372,663 ----------- ------------ ----------- ---------- Increase in Net Assets........ 40,898,088 17,382,588 5,041,457 8,905,247 NET ASSETS--BEGINNING OF PERIOD.... 17,382,588 -- 8,905,247 -- ----------- ------------ ----------- ---------- NET ASSETS--END OF PERIOD(1)....... $58,280,676 $ 17,382,588 $13,946,704 $8,905,247 =========== ============ =========== ========== (1) Including Undistributed Net Investment Income................ $ 4,334 $ 2,165 $ 5,299 $ 1,947 =========== ============ =========== ========== CHANGES IN SHARES OUTSTANDING: Shares Sold...................... 900,000 650,000 100,000 150,000 Shares Reinvested................ -- -- -- -- Shares Repurchased............... (100,000) (350,000) -- -- Shares Outstanding, Beginning of Period........................ 300,000 -- 150,000 -- ----------- ------------ ----------- ---------- Shares Outstanding, End of Period........................ 1,100,000 300,000 250,000 150,000 =========== ============ =========== ==========
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 60 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL RYDEX S&P EQUAL WEIGHT MATERIALS ETF WEIGHT TECHNOLOGY ETF ------------------------------------ ------------------------------------ SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD ENDED NOVEMBER 1, 2006* ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 -------------- ----------------- -------------- ----------------- OPERATIONS Net Investment Income/(Loss)... $ 120,788 $ 128,347 $ 7,630 $ (11,089) Net Realized Gain.............. 239,771 1,084,454 71,606 1,406,629 Net Change in Unrealized Appreciation/(Depreciation) on Investments.............. (853,015) 538,441 (2,974,655) 494,556 ----------- ------------ ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations.................. (492,456) 1,751,242 (2,895,419) 1,890,096 ----------- ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.......... (122,463) (119,952) (14,042) -- ----------- ------------ ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold...... -- 26,216,591 9,412,576 25,589,410 Value of Shares Reinvested..... -- -- -- -- Value of Shares Repurchased.... (5,543,626) (18,934,408) (4,605,642) (8,167,496) ----------- ------------ ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Share Transactions................ (5,543,626) 7,282,183 4,806,934 17,421,914 ----------- ------------ ----------- ----------- Increase/(Decrease) in Net Assets.................... (6,158,545) 8,913,473 1,897,473 19,312,010 NET ASSETS--BEGINNING OF PERIOD.. 8,913,473 -- 19,312,010 -- ----------- ------------ ----------- ----------- NET ASSETS--END OF PERIOD(1)..... $ 2,754,928 $ 8,913,473 $21,209,483 $19,312,010 =========== ============ =========== =========== (1) Including Undistributed Net Investment Income............ $ 6,720 $ 8,395 $ (6,412) $ -- =========== ============ =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold.................... -- 500,000 200,000 500,000 Shares Reinvested.............. -- -- -- -- Shares Repurchased............. (100,000) (350,000) (100,000) (150,000) Shares Outstanding, Beginning of Period................... 150,000 -- 350,000 -- ----------- ------------ ----------- ----------- Shares Outstanding, End of Period...................... 50,000 150,000 450,000 350,000 =========== ============ =========== ===========
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 61 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF ---------------------------------- SIX MONTHS FOR THE PERIOD ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 -------------- ----------------- OPERATIONS Net Investment Income................................. $ 86,341 $ 217,228 Net Realized Gain..................................... 43,622 661,560 Net Change in Unrealized Appreciation/(Depreciation) on Investments..................................... (706,941) 481,937 ---------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations......................................... (576,978) 1,360,725 ---------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income................................. (86,125) (203,649) ---------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold............................. -- 13,839,342 Value of Shares Reinvested............................ -- -- Value of Shares Repurchased........................... -- (8,767,932) ---------- ----------- Net Increase in Net Assets Resulting From Share Transactions....................................... -- 5,071,410 ---------- ----------- Increase/(Decrease) in Net Assets.................. (663,103) 6,228,486 NET ASSETS--BEGINNING OF PERIOD......................... 6,228,486 -- ---------- ----------- NET ASSETS--END OF PERIOD(1)............................ $5,565,383 $ 6,228,486 ========== =========== (1) Including Undistributed Net Investment Income....... $ 13,795 $ 13,579 ========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold........................................... -- 250,000 Shares Reinvested..................................... -- -- Shares Repurchased.................................... -- (150,000) Shares Outstanding, Beginning of Period............... 100,000 -- ---------- ----------- Shares Outstanding, End of Period..................... 100,000 100,000 ========== ===========
* The Fund commenced operations on November 1, 2006. See Notes to Financial Statements. SEMI-ANNUAL REPORT 62 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF ------------------------------------------------------ ---------------------------------- SIX MONTHS FOR THE PERIOD SIX MONTHS ENDED MARCH 1, 2006* ENDED APRIL 30, 2008 YEAR ENDED THROUGH APRIL 30, 2008 YEAR ENDED (UNAUDITED) OCTOBER 31, 2007 OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2007 -------------- ---------------- ---------------- -------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............. $34.46 $32.66 $29.87 $39.59 $35.30 ------- ------- ------- ------- ------- Net Investment Income**............ 0.54 0.75 0.49 0.09 0.25 Net Realized and Unrealized Gain/(Loss) on Investments......... (5.81) 1.80 2.58 (3.00) 4.26 ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS.......... (5.27) 2.55 3.07 (2.91) 4.51 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.............. (0.58) (0.75) (0.28) (0.10) (0.22) ------- ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD........... $28.61 $34.46 $32.66 $36.58 $39.59 ======= ======= ======= ======= ======= TOTAL RETURN***....... (15.36)% 7.79% 10.27% (7.33)% 12.79% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............ $27,193 $39,635 $21,232 $49,389 $63,340 RATIO TO AVERAGE NET ASSETS OF: Expenses.............. 0.35%**** 0.35% 0.35%**** 0.35%**** 0.35% Net Investment Income.............. 3.54%**** 2.15% 2.37%**** 0.51%**** 0.66% Portfolio Turnover Rate+............... 41% 26% 4% 22% 24% RYDEX S&P 500 PURE GROWTH ETF ---------------- FOR THE PERIOD MARCH 1, 2006* THROUGH OCTOBER 31, 2006 ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............. $34.42 ------- Net Investment Income**............ 0.11 Net Realized and Unrealized Gain/(Loss) on Investments......... 0.84 ------- TOTAL FROM INVESTMENT OPERATIONS.......... 0.95 ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.............. (0.07) ------- NET ASSET VALUE AT END OF PERIOD........... $35.30 ======= TOTAL RETURN***....... 2.77% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............ $17,649 RATIO TO AVERAGE NET ASSETS OF: Expenses.............. 0.35%**** Net Investment Income.............. 0.48%**** Portfolio Turnover Rate+............... 7%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 63 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 RYDEX S&P MIDCAP 400 PURE VALUE ETF PURE GROWTH ETF ---------------------------------------------------- --------------------------------- SIX MONTHS FOR THE PERIOD SIX MONTHS ENDED MARCH 1, 2006* ENDED APRIL 30, 2008 YEAR ENDED THROUGH APRIL 30, 2008 YEAR ENDED (UNAUDITED) OCTOBER 31, 2007 OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2007 -------------- ---------------- ---------------- -------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.... $35.76 $33.27 $31.53 $59.75 $50.10 ------- ------- ------- ------- ------- Net Investment Income**.. 0.43 0.82 0.44 0.02 0.33 Net Realized and Unrealized Gain/(Loss) on Investments......... (3.79) 2.48 1.60 (4.61) 9.73 ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. (3.36) 3.30 2.04 (4.59) 10.06 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (0.41) (0.81) (0.30) (0.04) (0.27) ------- ------- ------- ------- ------- Net Realized Gains....... -- -- -- -- (0.14) ------- ------- ------- ------- ------- Total Distributions...... (0.41) (0.81) (0.30) (0.04) (0.41) ------- ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD................. $31.99 $35.76 $33.27 $55.12 $59.75 ======= ======= ======= ======= ======= TOTAL RETURN***.......... (9.38)% 9.94% 6.48% (7.69)% 20.17% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $14,399 $21,458 $14,973 $16,537 $20,914 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.35%**** 0.35% 0.35%**** 0.35%**** 0.35% Net Investment Income.... 2.71%**** 2.28% 2.07%**** 0.06% 0.60% Portfolio Turnover Rate+.................. 52% 46% 4% 41% 53% RYDEX S&P MIDCAP 400 PURE GROWTH ETF ---------------- FOR THE PERIOD MARCH 1, 2006* THROUGH OCTOBER 31, 2006 ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.... $52.62 ------- Net Investment Income**.. 0.02 Net Realized and Unrealized Gain/(Loss) on Investments......... (2.53) ------- TOTAL FROM INVESTMENT OPERATIONS............. (2.51) ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (0.01) ------- Net Realized Gains....... -- ------- Total Distributions...... (0.01) ------- NET ASSET VALUE AT END OF PERIOD................. $50.10 ======= TOTAL RETURN***.......... (4.76)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $22,547 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.35%**** Net Investment Income.... 0.07% Portfolio Turnover Rate+.................. 14%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 64 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 RYDEX S&P SMALLCAP 600 PURE VALUE ETF PURE GROWTH ETF -------------------------------------------- -------------------------------------------- FOR THE PERIOD FOR THE PERIOD SIX MONTHS MARCH 1, 2006* SIX MONTHS MARCH 1, 2006* ENDED YEAR ENDED THROUGH ENDED YEAR ENDED THROUGH APRIL 30, 2008 OCTOBER 31, OCTOBER 31, APRIL 30, 2008 OCTOBER 31, OCTOBER 31, (UNAUDITED) 2007 2006 (UNAUDITED) 2007 2006 -------------- -------------- -------------- -------------- -------------- -------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........................ $37.38 $40.13 $38.45 $44.92 $39.10 $39.31 ------- ------- ------ ------ ------- ------ Net Investment Income/(Loss)**.. 0.41 0.74 0.37 0.13 -- (0.01) Net Realized and Unrealized Gain/(Loss) on Investments.... (5.92) (2.85) 1.62 (6.46) 5.84 (0.20) ------- ------- ------ ------ ------- ------ TOTAL FROM INVESTMENT OPERATIONS.................... (5.51) (2.11) 1.99 (6.33) 5.84 (0.21) ------- ------- ------ ------ ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (0.30) (0.62) (0.31) (0.16) (0.02) -- Capital......................... -- (0.02) -- -- -- -- ------- ------- ------ ------ ------- ------ Total Distributions............. -- (0.64) (0.31) -- (0.02) -- ------- ------- ------ ------ ------- ------ NET ASSET VALUE AT END OF PERIOD........................ $31.57 $37.38 $40.13 $38.43 $44.92 $39.10 ======= ======= ====== ====== ======= ====== TOTAL RETURN***................. (14.76)% (5.38)% 5.19% (14.07)% 14.93% (0.55)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $26,835 $22,426 $6,019 $5,765 $11,229 $7,820 RATIO TO AVERAGE NET ASSETS OF: Expenses........................ 0.35%**** 0.35% 0.35%**** 0.35%**** 0.35% 0.35%**** Net Investment Income/(Loss).... 2.51%**** 1.78% 1.46%**** 0.69%**** 0.00% (0.04)%**** Portfolio Turnover Rate+........ 46% 37% 7% 49% 51% 14%
* The Fund commenced operations on March 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 65 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF CONSUMER STAPLES ETF ------------------------------------ ------------------------------------ FOR THE PERIOD FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 ---------------- ----------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.......................... $44.50 $44.98 $52.68 $48.16 ------ ------- ------- ------ Net Investment Income**........... 0.29 0.32 0.43 1.16 Net Realized and Unrealized Gain/(Loss) on Investments...... (6.15) (0.49) (2.47) 4.32 ------ ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.. (5.86) (0.17) (2.04) 5.48 ------ ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............. (0.34) (0.31) (0.37) (0.96) ------ ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.. $38.30 $44.50 $50.27 $52.68 ====== ======= ======= ====== TOTAL RETURN***................... (13.18)% (0.40)% (3.89)% 11.45% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)........................ $7,659 $28,928 $12,567 $7,902 RATIO TO AVERAGE NET ASSETS OF: Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50% Net Investment Income............. 1.52%**** 0.67% 1.72%**** 2.29% Portfolio Turnover Rate+.......... 13% 28% 11% 19%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 66 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT FINANCIALS RYDEX S&P EQUAL WEIGHT ENERGY ETF ETF ------------------------------------ ------------------------------------ FOR THE PERIOD FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 ---------------- ----------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.......................... $67.48 $48.35 $46.67 $48.57 ------- ------- ------ ------ Net Investment Income**........... 0.14 0.27 0.53 0.92 Net Realized and Unrealized Gain/(Loss) on Investments...... 5.92 19.14 (9.62) (1.95) ------- ------- ------ ------ TOTAL FROM INVESTMENT OPERATIONS.. 6.06 19.41 (9.09) (1.03) ------- ------- ------ ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............. (0.15) (0.28) (0.47) (0.87) Net Realized Gains................ (1.80) -- -- -- ------- ------- ------ ------ Total Distributions............... (1.95) (0.28) (0.47) (0.87) ------- ------- ------ ------ NET ASSET VALUE AT END OF PERIOD.. $71.59 $67.48 $37.11 $46.67 ======= ======= ====== ====== TOTAL RETURN***................... 9.11% 40.28% (19.48)% (2.23)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)........................ $14,317 $10,122 $5,566 $7,000 RATIO TO AVERAGE NET ASSETS OF: Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50% Net Investment Income............. 0.43%**** 0.47% 2.75%**** 1.84% Portfolio Turnover Rate+.......... 18% 34% 19% 31%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 67 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF WEIGHT INDUSTRIALS ETF ------------------------------------ ------------------------------------ FOR THE PERIOD FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 ---------------- ----------------- ---------------- ----------------- ---------------------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.......................... $57.94 $49.46 $59.37 $49.15 ------- ------- ------- ------ Net Investment Income**........... 0.06 0.11 0.29 0.56 Net Realized and Unrealized Gain/(Loss) on Investments...... (4.95) 8.48 (1.83) 10.21 ------- ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.. (4.89) 8.59 (1.54) 10.77 ------- ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............. (0.07) (0.11) (0.26) (0.55) Net Realized Gains................ -- -- (1.78) -- ------- ------- ------- ------ Total Distribution................ (0.07) (0.11) (2.04) (0.55) ------- ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.. $52.98 $57.94 $55.79 $59.37 ======= ======= ======= ====== TOTAL RETURN***................... (8.45)% 17.37% (2.61)% 22.00% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)........................ $58,281 $17,383 $13,947 $8,905 RATIO TO AVERAGE NET ASSETS OF: Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50% Net Investment Income............. 0.22%**** 0.20% 1.07%**** 1.02% Portfolio Turnover Rate+.......... 12% 55% 16% 36%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 68 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL RYDEX S&P EQUAL WEIGHT MATERIALS ETF WEIGHT TECHNOLOGY ETF ------------------------------------ ------------------------------------ FOR THE PERIOD FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007 ---------------- ----------------- ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.......................... $59.42 $48.43 $55.18 $47.80 ------ ------ ------- ------- Net Investment Income/(Loss)**.... 0.88 0.85 0.02 (0.05) Net Realized and Unrealized Gain/(Loss) on Investments...... (4.38) 10.74 (8.04) 7.43 ------ ------ ------- ------- TOTAL FROM INVESTMENT OPERATIONS.. (3.50) 11.59 (8.02) 7.38 ------ ------ ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............. (0.82) (0.60) (0.03) -- ------ ------ ------- ------- NET ASSET VALUE AT END OF PERIOD (000'S OMITTED)................. $55.10 $59.42 $47.13 $55.18 ====== ====== ======= ======= TOTAL RETURN***................... (5.90)% 24.02% (14.53)% 15.44% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)........................ $2,755 $8,913 $21,209 $19,312 RATIO TO AVERAGE NET ASSETS OF: Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50% Net Investment Income/(Loss)...... 3.27%**** 1.53% 0.07%**** (0.10)% Portfolio Turnover Rate+.......... 14% 31% 20% 60%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 69 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF ------------------------------------ FOR THE PERIOD SIX MONTHS ENDED NOVEMBER 1, 2006* APRIL 30, 2008 THROUGH (UNAUDITED) OCTOBER 31, 2007 ---------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD................ $62.28 $54.91 ------ ------ Net Investment Income**............................... 0.86 1.55 Net Realized and Unrealized Gain/(Loss) on Investments**....................................... (6.63) 7.38 ------ ------ TOTAL FROM INVESTMENT OPERATIONS...................... (5.77) 8.93 ------ ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................. (0.86) (1.56) ------ ------ NET ASSET VALUE AT END OF PERIOD...................... $55.65 $62.28 ====== ====== TOTAL RETURN***....................................... (9.30)% 16.41% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's omitted)........... $5,565 $6,228 RATIO TO AVERAGE NET ASSETS OF: Expenses.............................................. 0.50%**** 0.50% Net Investment Income................................. 3.02%**** 2.59% Portfolio Turnover Rate+.............................. 13% 20%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. See Notes to Financial Statements. SEMI-ANNUAL REPORT 70 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2008 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2008, the Trust offers twenty three portfolios, each of which represents a separate series of beneficial interest in the Trust, (each a "Fund" and collectively, the "Funds"). The financial statement herein relate to the following Funds: Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure Growth ETF, Rydex S&P MidCap 400 Pure Value ETF, Rydex S&P MidCap 400 Pure Growth ETF, Rydex S&P SmallCap 600 Pure Value ETF, Rydex S&P SmallCap 600 Pure Growth ETF, Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal Weight Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal Weight Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal Weight Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal Weight Technology ETF and Rydex S&P Equal Weight Utilities ETF. Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure Growth ETF, Rydex S&P MidCap 400 Pure Value ETF, Rydex S&P MidCap 400 Pure Growth ETF, Rydex S&P SmallCap 600 Pure Value ETF and Rydex S&P SmallCap 600 Pure Growth ETF commenced operations on March 1, 2006. Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal Weight Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal Weight Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal Weight Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal Weight Technology ETF and Rydex S&P Equal Weight Utilities ETF commenced operations on November 1, 2006. The Funds' investment objective is to provide investment results that correspond generally to the performance, before fees and expenses, of an index representing publicly traded equity securities (the "Underlying Index"). Rydex S&P 500 Pure Value ETF tracks the S&P 500/Citigroup Pure Value Index, the Rydex S&P 500 Pure Growth ETF tracks the S&P 500/Citigroup Pure Growth Index, the Rydex S&P MidCap 400 Pure Value ETF tracks the S&P MidCap 400/Citigroup Pure Value Index, the Rydex S&P MidCap 400 Pure Growth ETF tracks the S&P MidCap 400/Citigroup Pure Growth Index, the Rydex S&P SmallCap 600 Pure Value ETF tracks the S&P SmallCap 600/Citigroup Pure Value Index, the Rydex S&P SmallCap 600 Pure Growth ETF tracks the S&P SmallCap 600/Citigroup Pure Growth Index, Rydex S&P Equal Weight Consumer Discretionary ETF tracks the S&P Equal Weight Index Consumer Discretionary, the Rydex S&P Equal Weight Consumer Staples ETF tracks the S&P Equal Weight Index Consumer Staples, the Rydex S&P Equal Weight Energy ETF tracks the S&P Equal Weight Index Energy, the Rydex S&P Equal Weight Financials ETF tracks the S&P Equal Weight Index Financials, the Rydex S&P Equal Weight Health Care ETF tracks the S&P Equal Weight Index Health Care, the Rydex S&P Equal Weight Industrials ETF tracks the S&P Equal Weight Index Industrials, the Rydex S&P Equal Weight Materials ETF tracks the S&P Equal Weight Index Materials, the Rydex S&P Equal Weight Technology ETF tracks the S&P Equal Weight Index Information Technology and the Rydex S&P Equal Weight Utilities ETF tracks the S&P Equal Weight Index Telecommunication Services & Utilities. The Funds seek to achieve their objective by investing in common stocks that comprise the Underlying Index. The Funds use a "replication" strategy to track the Underlying Index. "Replication" refers to investing in substantially all of the securities in the Underlying Index in approximately the same proportions as in the Underlying Index. The Funds operate as index funds and are not actively managed. Adverse performance of a security in the Funds' portfolio will ordinarily not result in the elimination of the security from the Funds' portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with 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 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. SEMI-ANNUAL REPORT 71 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- 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. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed-upon price. The repurchase price reflects an agreed-upon interest rate during the time the Fund's money is invested in the security. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. The Funds follows certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by Rydex 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, 2008, 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 to distribute all of the taxable income and capital gains, if any, to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. 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, 2008, the Funds realized net capital gains resulting from in-kind redemptions and other transactions. Because gains from in-kind redemptions are not taxable to the Funds, and are not distributed to existing Fund shareholders, the gains are reclassified from accumulated net realized gains to paid-in-capital at the end of the Funds tax year. These reclassifications have no effect on net assets or net asset value per share. The in-kind net capital gains for the six months ended April 30, 2008 are disclosed in the Fund's Statement of Operations. At April 30, 2008, the Funds had capital loss carryforwards which may be utilized to offset any net realized capital gains expiring October 31:
2014 2015 ------- -------- Rydex S&P 500 Pure Value ETF..................................... $ -- $ -- Rydex S&P 500 Pure Growth ETF.................................... 28,988 142,389 Rydex S&P MidCap 400 Pure Value ETF.............................. 94,708 13,767 Rydex S&P MidCap 400 Pure Growth ETF............................. -- -- Rydex S&P SmallCap 600 Pure Value ETF............................ 16,654 170,782 Rydex S&P SmallCap 600 Pure Growth ETF........................... -- -- Rydex S&P Equal Weight Consumer Discretionary ETF................ -- -- Rydex S&P Equal Weight Consumer Staples ETF...................... -- 54,862 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............................. -- --
E. DIVIDENDS AND DISTRIBUTIONS The Funds declare and pay dividends from net investment income and distribute from net realized capital gains at least annually. SEMI-ANNUAL REPORT 72 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- 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 S&P Equal Weight Sector ETFs are non-diversified funds, subjecting them to a greater risk than funds that are diversified. G. NEW ACCOUNTING PRONOUNCEMENTS On July 13, 2006, the Financial Accounting Standards Board ("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 Funds' 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 a more-likely-than-not threshold would be recorded as a tax 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. Management evaluated the implications of FIN 48 and determined that all tax positions meet the "more-likely than not" threshold. As a result, the financial statements have not been impacted by the adoption of FIN 48. However, management's conclusions regarding FIN 48 are subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance expected from FASB, and on-going analysis of tax laws, regulation, and interpretations thereof. In September, 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact, if any, the adoption of SFAS 157 will have on the Funds' financial statements. Management does not anticipate SFAS 157 will have a material impact on the Funds' financial statements. In March, 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact, if any, the adoption of SFAS 161 will have on the Funds' financial statement disclosures. 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 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 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 SEMI-ANNUAL REPORT 73 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- 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, 2008, there were an unlimited number of no par value shares of beneficial interest authorized. There is a minimum transaction fee per transaction to those persons purchasing or redeeming Creation Units. An additional charge of up to three times the standard transaction fee may be imposed for purchases and redemptions effected outside the National Securities Clearing Corporation usual clearing process or for cash. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the net asset value per unit of the Fund on the transaction date. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex 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, 2008 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex S&P 500 Pure Value ETF................................. $ 5,985,902 $11,843,159 Rydex S&P 500 Pure Growth ETF................................ 13,216,847 22,373,502 Rydex S&P MidCap 400 Pure Value ETF.......................... -- 4,756,051 Rydex S&P MidCap 400 Pure Growth ETF......................... 10,386,406 13,416,579 Rydex S&P SmallCap 600 Pure Value ETF........................ 12,563,055 5,113,009 Rydex S&P SmallCap 600 Pure Growth ETF....................... -- 4,254,691 Rydex S&P Equal Weight Consumer Discretionary ETF............ 45,750,004 63,969,077 Rydex S&P Equal Weight Consumer Staples ETF.................. 4,777,913 -- Rydex S&P Equal Weight Energy ETF............................ 6,874,552 3,212,343 Rydex S&P Equal Weight Financials ETF........................ -- -- Rydex S&P Equal Weight Health Care ETF....................... 48,054,192 5,471,377 Rydex S&P Equal Weight Industrials ETF....................... 5,137,610 -- Rydex S&P Equal Weight Materials ETF......................... -- 5,539,678 Rydex S&P Equal Weight Technology ETF........................ 9,414,896 4,609,894 Rydex S&P Equal Weight Utilities ETF......................... -- --
SEMI-ANNUAL REPORT 74 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- Purchases and sales of investment securities (excluding short-term investments, U.S. government and government agency obligations) for the Funds were as follows:
PURCHASES SALES ----------- ----------- Rydex S&P 500 Pure Value ETF.................................. $18,144,075 $13,324,028 Rydex S&P 500 Pure Growth ETF................................. 10,771,369 14,001,951 Rydex S&P MidCap 400 Pure Value ETF........................... 8,013,012 8,022,482 Rydex S&P MidCap 400 Pure Growth ETF.......................... 8,350,319 7,563,908 Rydex S&P SmallCap 600 Pure Value ETF......................... 11,119,595 10,893,516 Rydex S&P SmallCap 600 Pure Growth ETF........................ 3,541,594 3,584,422 Rydex S&P Equal Weight Consumer Discretionary ETF............. 3,118,486 2,689,228 Rydex S&P Equal Weight Consumer Staples ETF................... 998,204 1,146,732 Rydex S&P Equal Weight Energy ETF............................. 2,440,494 2,940,616 Rydex S&P Equal Weight Financials ETF......................... 1,240,661 1,145,968 Rydex S&P Equal Weight Health Care ETF........................ 3,001,410 3,192,372 Rydex S&P Equal Weight Industrials ETF........................ 1,542,740 1,892,357 Rydex S&P Equal Weight Materials ETF.......................... 1,027,649 1,052,109 Rydex S&P Equal Weight Technology ETF......................... 4,200,839 4,153,415 Rydex S&P Equal Weight Utilities ETF.......................... 738,387 787,681
There were no purchases or sales of U.S. government or government agency obligations for the six months ended April 30, 2008. The identified cost of investments in securities owned by each Fund for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and depreciation at April 30, 2008 were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION COST APPRECIATION DEPRECIATION (DEPRECIATION) ----------- ------------ ------------ -------------- Rydex S&P 500 Pure Value ETF.................... $32,953,253 $ 564,379 $6,349,525 $(5,785,146) Rydex S&P 500 Pure Growth ETF................... 51,364,834 3,607,849 5,592,536 (1,984,687) Rydex S&P MidCap 400 Pure Value ETF............. 16,864,868 528,643 3,011,349 (2,482,706) Rydex S&P MidCap 400 Pure Growth ETF............ 17,736,036 1,262,693 2,459,659 (1,196,966) Rydex S&P SmallCap 600 Pure Value ETF........... 31,132,439 1,149,843 5,460,783 (4,310,940) Rydex S&P SmallCap 600 Pure Growth ETF.......... 6,386,220 386,809 1,007,554 (620,745) Rydex S&P Equal Weight Consumer Discretionary ETF........................................... 9,917,211 72,198 2,330,444 (2,258,246) Rydex S&P Equal Weight Consumer Staples ETF..... 12,004,020 868,207 312,468 555,739 Rydex S&P Equal Weight Energy ETF............... 11,967,661 2,867,059 517,632 2,349,427 Rydex S&P Equal Weight Financials ETF........... 7,174,874 188,664 1,799,027 (1,610,363) Rydex S&P Equal Weight Health Care ETF.......... 60,165,278 1,117,694 3,007,790 (1,890,096) Rydex S&P Equal Weight Industrials ETF.......... 12,627,795 1,614,926 300,937 1,313,989 Rydex S&P Equal Weight Materials ETF............ 3,065,891 224,067 538,641 (314,574) Rydex S&P Equal Weight Technology ETF........... 23,672,057 381,446 2,861,545 (2,480,099) Rydex S&P Equal Weight Utilities ETF............ 5,782,136 383,430 608,434 (225,004)
6. ACQUISITION OF RYDEX INVESTMENTS AND THE DISTRIBUTOR At the close of business on January 17, 2008, Rydex NV, Inc., comprised of Rydex Investments, together with several other Rydex entities, was acquired by Security Benefit Corporation ("Security Benefit"), a financial services firm that provides a broad variety of financial programs to investors in the advisor, banking, education, government, institutional, and qualified plan markets (the "Transaction"). As a result of the Transaction's completion, Rydex Investments and the Distributor are wholly-owned subsidiaries of Security Benefit. While the Transaction has no material impact on the Funds or their shareholders, it resulted in a change of control of Rydex Investments, which in turn caused the termination of the investment advisory agreement between Rydex Investments and the Funds. A new investment advisory agreement between Rydex Investments and the Funds was approved under substantially the same terms as the previous investment advisory agreement (the "New Agreement"). This New Agreement was approved by shareholders, via proxy, and took effect upon the closing of the Transaction. The Transaction had no impact on the day-to-day operations of Rydex Investments, the fees payable to Rydex Investments under the New Agreement, or the persons responsible for the management of the Funds. SEMI-ANNUAL REPORT 75 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 76 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
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- CARL G. Rydex Series Funds - 2004 149 VERBONCOEUR* Rydex Variable Trust - 2004 Trustee, Rydex Dynamic Funds - 2004 President (1952) 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 Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and Rydex Distributors, Inc. (1997 to 2000) --------------------- MICHAEL P. Rydex Series Funds - 2005 149 BYRUM* Rydex Variable Trust - 2005 Trustee, Vice Rydex Dynamic Funds - 2005 President and Rydex ETF Trust - 2005 Secretary (1970)
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 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 Global Advisors (2004 to present); Chief Operating Officer of Rydex Global Advisors and Rydex Distributors, Inc. (2003 to 2004) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- JOHN O. DEMARET Rydex Series Funds - 1997 141 Trustee, Rydex Variable Trust - 1998 Chairman of the Rydex Dynamic Funds - 1999 Board (1940) Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------------- COREY A. Rydex Series Funds - 1993 141 COLEHOUR Rydex Variable Trust - 1998 Trustee (1945) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield Management Company --------------------- J. KENNETH Rydex Series Funds - 1995 141 DALTON Rydex Variable Trust - 1998 Trustee (1941) 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 141 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, Rydex Series Funds - 2005 141 JR. Rydex Variable Trust - 2005 Trustee (1960) Rydex Dynamic Funds - 2005 Rydex ETF Trust - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends Investments --------------------- PATRICK T. Rydex Series Funds - 1997 141 MCCARVILLE Rydex Variable Trust - 1998 Trustee (1942) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries, Inc. --------------------- ROGER SOMERS Rydex Series Funds - 1993 141 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine -------------------------------------------------------------------------------- SEMI-ANNUAL REPORT 77 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES (CONT.) EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) Specialized Products, LLC (2005 to present); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Fund Services, Inc. (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice President of Accounting of Rydex Fund Services, Inc. (2000 to 2003) JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Assistant Variable Trust, (1966) and Rydex Dynamic Funds (2004 to present); Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Assistant Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Fund Services, Inc. (2000 to present); Secretary of Rydex Capital Partners SphinX Fund (2003 to 2006) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006); Vice President of Rydex Fund Services, Inc. (2004 to present); Director of Accounting of Rydex Fund Services, Inc. (2003 to 2004); Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006); Director of Fund Administration of Rydex Fund Services, Inc. (2001 to present)
* Trustees and Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the 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-0408X1008 April 30, 2008 RYDEX ETF TRUST SEMI-ANNUAL REPORT RYDEX 2x S&P 500 ETF RYDEX INVERSE 2x S&P 500 ETF RYDEX 2x S&P MIDCAP 400 ETF RYDEX INVERSE 2x S&P MIDCAP 400 ETF RYDEX 2x RUSSELL 2000(R) ETF RYDEX INVERSE 2x RUSSELL 2000(R) ETF [GRAPHIC] [RYDEX INVESTMENTS LOGO] SEMI-ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS........................ 2 A BRIEF NOTE ON THE COMPOUNDING OF RETURNS........ 4 FEES & EXPENSES................................... 4 PORTFOLIO SUMMARY................................. 6 SCHEDULE OF INVESTMENTS........................... 9 STATEMENTS OF ASSETS AND LIABILITIES.............. 43 STATEMENTS OF OPERATIONS.......................... 45 STATEMENTS OF CHANGES IN NET ASSETS............... 47 FINANCIAL HIGHLIGHTS.............................. 50 NOTES TO FINANCIAL STATEMENTS..................... 53 SUPPLEMENTAL INFORMATION.......................... 58
SEMI-ANNUAL REPORT 2 -------------------------------------------------------------------------------- DEAR SHAREHOLDER, Rydex is a proud participant in the ETF space, having $6.1 million in ETF assets, 31 exchange traded products and plans to introduce many more in the future. In the last six months, we've launched six new exchange traded products and in the past year our assets have grown more than 27%. Because of their cost-effectiveness, transparency, convenience and accessibility, ETFs can be a beneficial part of most investor portfolios. However, lack of education about the products can be a barrier for many investors. For example, a Rydex survey of individual mutual fund investors in 2007 found that more than half (53%) of investors do not know the difference between a mutual fund and ETF and 38% don't know what an ETF is.(1) Rydex believes that investors need to be knowledgeable about their investment selections -- whether they choose ETFs or any other investment option. That's why we created ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help boost ETF knowledge for both advisors and their clients. ETF Essentials presents information in simple, understandable language and is available via podcast (audio downloads), print and online. It's free and can be requested on the Rydex web site (www.rydexinvestments.com). MARKET RECAP The six-month period ending April 30 was a momentous one in many respects. The U.S. financial system teetered on the brink of collapse as the ongoing crisis in the nation's credit markets seemed to threaten the solvency of many major Wall Street institutions. Indeed, financial market turmoil, the magnitude of which had not been seen in decades, led to the dramatic collapse of Bear Stearns, a powerhouse investment bank that traced its origins back to the 1920s and had successfully weathered the Great Depression. References to the Great Depression are appropriate since many of the emergency actions taken by the Fed to keep the financial system afloat during this period had their origins in that earlier crisis. The acceptance of mortgage-backed debt as collateral, and lending to non-depository institutions in particular are policies taken straight from the 1930s. Most financial crises lead to the demise of at least one major financial institution -- think of Penn Central, Continental Illinois and Long Term Capital Management -- and this one was no exception. If there is good news here, it is that collapses, such as Bear Stearns in March, usually signify the beginning of the end of a financial panic. True to form, once it was clear that other major financial institutions did not face solvency issues along the lines of Bear Stearns, stocks soared in a classic relief rally. Although there was a perceptible shift in sentiment at the tail end of the period, it was not enough to reverse what was a difficult period for stocks. The bellwether S&P 500 fell nearly 10% as investors ran to the safety of U.S. Treasury securities, pulling long-term interest rates to five-year lows in the process. The Fed slashed interest rates at the fastest pace in history, dropping the widely watched Fed Funds target rate to 2.00% from 4.50% in five sweeping moves. In this crisis environment the Fed, in conjunction with other central banks, continuously pumped hundreds of billions of dollars of liquidity into the global financial system. In fact, government at all levels was in full crisis prevention mode. Congress and the Bush administration forged a $168 billion fiscal stimulus plan with lightning speed and the nation's home lending industry, in the form of Fannie Mae and Freddie Mac, was restructured to help relieve pressure on the beleaguered housing market. Risk exposures of all types were sold indiscriminately, hitting financials, technology and consumer discretionary stocks particularly hard. Aggravated by a weakening job market, falling housing values and rising inflation, consumer sentiment levels hit multi-year lows. With all the ingredients for a recession firmly in place -- shrinking payrolls, declining retail sales, curtailed capital spending plans and falling wealth levels -- economic activity essentially crawled to a halt. The cheap U.S. dollar fueled a boom in exports, which kept economic growth just barely in the black. One outgrowth of the dollar's descent in foreign exchange markets was a corresponding rise in commodity prices. The speculative boom in commodity prices reached a frenzy, putting commodity index levels at 10-year highs. Much of that was driven by oil, the price of which rose in excess of 20% and broke the $100/bbl. level in early March. ---------- (1) Rydex Investments in conjunction with e-Rewards Market Research conducted this survey of individual investors in July 2007. The survey was conducted with 500 individual mutual fund investors. All participants had investable assets of more than $100K, with 150 of the participants having investable assets of more than $500K. e-Rewards Market Research is not affiliated with Rydex Investments. Although Rydex Investments believes the information from this organization is correct, it cannot, and does not, guarantee or warrant the completeness or suitability of this information. SEMI-ANNUAL REPORT 3 -------------------------------------------------------------------------------- An implicit part of the sentiment shift observed at the end of the quarter was the notion that the Fed is no longer part of the problem but rather part of the solution. In retrospect it appears that the Fed's policy responses throughout the crisis have been effective and appropriate. We appreciate the trust you have placed in our firm's quality and integrity by investing with us. It is our goal to continue to offer you innovative ETF choices to meet your investment needs. Sincerely, /s/ DAVID C. REILLY, CFA David Reilly, CFA Director of Portfolio Strategies All sources: Bloomberg SEMI-ANNUAL REPORT 4 A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited) -------------------------------------------------------------------------------- Many of the Rydex Funds described in this report are benchmarked daily to leveraged or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns. Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods. AN EXAMPLE OF COMPOUNDING For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund's net asset value ("NAV") increases from $10.00 to $10.90 for a gain of 9.0% -- in line with its benchmark. On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.
INDEX INDEX FUND FUND FUND LEVEL PERFORMANCE EXPECTATION NAV PERFORMANCE ASSESSMENT --------------------------------------------------------------------------------------------------------------- Start 100 $10.00 Day 1 106 6.0% 9.0% $10.90 9.0% In line Day 2 99 (6.6)% (9.9)% $ 9.82 (9.9)% In line Cumulative (1.0)% (1.5)% (1.8)% (0.3)% ---------------------------------------------------------------------------------------------------------------
As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index. In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor's favor, causing the fund to seemingly beat its benchmark. As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect. SEMI-ANNUAL REPORT 5 -------------------------------------------------------------------------------- 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, trustee fees and, if applicable, distribution fees. All other Trust expenses are paid by the advisor. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example in the table is based on an investment of $1,000 invested on November 5, 2007 and held for the period ended April 30, 2008. 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 Period" to estimate the expenses attributable to your investment during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as creation and redemption fees, or brokerage charges. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID ACCOUNT ACCOUNT DURING VALUE VALUE PERIOD* 11/5/2007 4/30/2008 11/1/07 TO 4/30/08 --------- --------- ------------------ ACTUAL Rydex Inverse 2x S&P 500 ETF**........................ $1,000 $ 831.50 $3.12 Rydex 2x S&P 500 ETF**................................ $1,000 $1,129.20 $3.62 Rydex 2x MidCap 400 ETF**............................. $1,000 $ 879.40 $3.20 Rydex Inverse 2x S&P MidCap 400 ETF**................. $1,000 $1,052.00 $3.49 Rydex 2x Russell 2000(R) ETF**........................ $1,000 $ 787.10 $3.04 Rydex Inverse 2x Russell 2000(R) ETF**................ $1,000 $1,121.70 $3.61 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex Inverse 2x S&P 500 ETF**........................ $1,000 $1,021.38 $3.52 Rydex 2x S&P 500 ETF**................................ $1,000 $1,021.38 $3.52 Rydex 2x MidCap 400 ETF**............................. $1,000 $1,021.38 $3.52 Rydex Inverse 2x S&P MidCap 400 ETF**................. $1,000 $1,021.38 $3.52 Rydex 2x Russell 2000(R) ETF**........................ $1,000 $1,021.38 $3.52 Rydex Inverse 2x Russell 2000(R) ETF**................ $1,000 $1,021.38 $3.52
-------- * Actual expenses are equal to the Fund's annualized expense ratio of 0.70%, 0.70%, 0.70%, 0.70%, 0.70%, and 0.70%. respectively, multiplied by the average account value of the period, multiplied by days in the period since commencement, divided by 366. Hypothetical expenses are equal to the Fund's annualized expense ratio of 0.70%, 0.70%, 0.70%, 0.70%, 0.70%, and 0.70%, respectively, multiplied by the average account value of the period, multiplied by days in the most recent six month period, divided by 366. ** Fund commenced operations on 11/5/07 SEMI-ANNUAL REPORT 6 RYDEX 2x S&P 500 ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 3.60% GENERAL ELECTRIC CO. 2.36% AT&T, INC. 1.69% MICROSOFT CORP. 1.65% PROCTER & GAMBLE CO. 1.49% CHEVRON CORP. 1.44% JOHNSON & JOHNSON 1.38% INTERNATIONAL BUSINESS MACHINES CORP. 1.21% BANK OF AMERICA CORP. 1.21% JPMORGAN CHASE & CO. 1.17% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 17.12 Information Technology 15.97 Energy 14.05 Industrials 11.79 Health Care 11.35 Consumer Staples 10.52 Consumer Discretionary 8.59 Utilities 3.62 Materials 3.58 Telecommunication Services 3.41
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 7 RYDEX 2x S&P MIDCAP 400 ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SOUTHWESTERN ENERGY CO. 1.13% INTUITIVE SURGICAL, INC. 0.88% FMC TECHNOLOGIES, INC. 0.70% AMPHENOL CORP. 0.65% EQUITABLE RESOURCES, INC. 0.65% ARCH COAL, INC. 0.65% MILLENNIUM PHARMACEUTICALS, INC. 0.64% JOY GLOBAL, INC. 0.63% NEWFIELD EXPLORATION CO. 0.63% ACTIVISION, INC. 0.63% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Industrials 16.40 Financials 16.00 Information Technology 13.54 Consumer Discretionary 12.51 Health Care 11.99 Energy 10.33 Utilities 7.97 Materials 7.60 Consumer Staples 3.19 Telecommunication Services 0.47
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 8 RYDEX 2x RUSSELL 2000(R) ETF PORTFOLIO SUMMARY As of April 30, 2008 --------------------------------------------------------------------------------
TOP 10 HOLDINGS* ------------------------------------------------------------------------------------ DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CF INDUSTRIES HOLDINGS, INC. 0.55% HOLOGIC, INC. 0.52% PRICELINE.COM, INC. 0.36% BUCYRUS INTERNATIONAL, INC. -- CLASS A 0.34% PETROHAWK ENERGY CORP. 0.33% FLIR SYSTEMS, INC. 0.33% ILLUMINA, INC. 0.30% EXTERRAN HOLDINGS, INC. 0.30% WALTER INDUSTRIES, INC. 0.27% TERRA INDUSTRIES, INC. 0.26% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 19.61 Information Technology 17.39 Industrials 15.25 Consumer Discretionary 13.44 Health Care 12.87 Energy 8.29 Materials 5.65 Consumer Staples 3.14 Utilities 3.11 Telecommunication Services 1.25
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. SEMI-ANNUAL REPORT 9 RYDEX 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS 87.2% AEROSPACE & DEFENSE 2.6% Boeing Co. ................................ 1,890 $160,385 General Dynamics Corp. .................... 990 89,516 Goodrich Corp. ............................ 310 21,127 Honeywell International, Inc. ............. 1,840 109,296 L-3 Communications Holdings, Inc. ......... 300 33,435 Lockheed Martin Corp. ..................... 850 90,134 Northrop Grumman Corp. .................... 830 61,063 Precision Castparts Corp. ................. 340 39,970 Raytheon Co. .............................. 1,050 67,169 Rockwell Collins, Inc. .................... 400 25,244 United Technologies Corp. ................. 2,420 175,377 ---------- TOTAL AEROSPACE & DEFENSE 872,716 ---------- AIR FREIGHT & LOGISTICS 0.9% C.H. Robinson Worldwide, Inc. ............. 420 26,326 Expeditors International of Washington, Inc. ................................... 530 24,693 FedEx Corp. ............................... 760 72,861 United Parcel Service, Inc. -- Class B..... 2,550 184,645 ---------- TOTAL AIR FREIGHT & LOGISTICS 308,525 ---------- AIRLINES 0.1% Southwest Airlines Co. .................... 1,810 23,964 ---------- TOTAL AIRLINES 23,964 ---------- AUTO COMPONENTS 0.2% Goodyear Tire & Rubber Co.*................ 590 15,800 Johnson Controls, Inc. .................... 1,460 51,480 ---------- TOTAL AUTO COMPONENTS 67,280 ---------- AUTOMOBILES 0.3% Ford Motor Co.*............................ 5,440 44,934 General Motors Corp. ...................... 1,400 32,480 Harley-Davidson, Inc. ..................... 590 22,568 ---------- TOTAL AUTOMOBILES 99,982 ---------- BEVERAGES 2.1% Anheuser-Busch Cos., Inc. ................. 1,760 86,592 Brown-Forman Corp. -- Class B.............. 210 14,284 Coca-Cola Co. ............................. 4,930 290,229 Coca-Cola Enterprises, Inc. ............... 710 15,975 Constellation Brands, Inc. -- Class A*..... 480 8,813 Molson Coors Brewing Co. -- Class B........ 340 18,646 Pepsi Bottling Group, Inc. ................ 340 11,461 PepsiCo, Inc. ............................. 3,950 270,694 ---------- TOTAL BEVERAGES 716,694 ---------- BIOTECHNOLOGY 1.1% Amgen, Inc.*............................... 2,680 112,212 Biogen Idec, Inc.*......................... 730 44,304 Celgene Corp.*............................. 1,070 66,490 Genzyme Corp.*............................. 660 46,431 Gilead Sciences, Inc.*..................... 2,290 118,530 ---------- TOTAL BIOTECHNOLOGY 387,967 ---------- BUILDING PRODUCTS 0.1% Masco Corp. ............................... 900 16,389 Trane, Inc. ............................... 430 19,999 ---------- TOTAL BUILDING PRODUCTS 36,388 ---------- CAPITAL MARKETS 2.7% American Capital Strategies, Ltd. ......... 480 15,240 Ameriprise Financial, Inc. ................ 560 26,594 Bank of New York Mellon Corp. ............. 2,820 122,755 Bear Stearns Cos., Inc. ................... 477 5,118 Charles Schwab Corp. ...................... 2,320 50,112 E*TRADE Financial Corp.*................... 1,140 4,537 Federated Investors, Inc. -- Class B....... 210 7,031 Franklin Resources, Inc. .................. 390 37,109 Goldman Sachs Group, Inc. ................. 970 185,629 Janus Capital Group, Inc. ................. 360 10,102 Legg Mason, Inc. .......................... 330 19,892 Lehman Brothers Holdings, Inc. ............ 1,310 57,954 Merrill Lynch & Co., Inc. ................. 2,400 119,592 Morgan Stanley............................. 2,730 132,678 Northern Trust Corp. ...................... 470 34,832 State Street Corp. ........................ 960 69,254 T. Rowe Price Group, Inc. ................. 650 38,064 ---------- TOTAL CAPITAL MARKETS 936,493 ---------- CHEMICALS 1.7% Air Products & Chemicals, Inc. ............ 530 52,168 Ashland, Inc. ............................. 140 7,423 Dow Chemical Co. .......................... 2,320 93,148 Du Pont (E.I.) de Nemours & Co. ........... 2,220 108,580 Eastman Chemical Co. ...................... 200 14,700 Ecolab, Inc. .............................. 430 19,763 Hercules, Inc. ............................ 280 5,264 International Flavors & Fragrances, Inc. .. 200 9,122 Monsanto Co. .............................. 1,350 153,927 PPG Industries, Inc. ...................... 400 24,548 Praxair, Inc. ............................. 770 70,309 Rohm & Haas Co. ........................... 310 16,569 Sigma-Aldrich Corp. ....................... 320 18,246 ---------- TOTAL CHEMICALS 593,767 ---------- COMMERCIAL BANKS 2.5% BB&T Corp. ................................ 1,350 46,292 Comerica, Inc. ............................ 370 12,850 Fifth Third Bancorp........................ 1,310 28,073 First Horizon National Corp. .............. 460 4,968 Huntington Bancshares, Inc. ............... 900 8,451 KeyCorp.................................... 980 23,647 M&T Bank Corp. ............................ 190 17,714 Marshall & Ilsley Corp. ................... 650 16,237 National City Corp. ....................... 1,870 11,781 PNC Financial Services Group, Inc. ........ 840 58,254 Regions Financial Corp. ................... 1,710 37,483 SunTrust Banks, Inc. ...................... 870 48,503 U.S. Bancorp............................... 4,270 144,710 Wachovia Corp. ............................ 5,250 153,038
See Notes to Financial Statements. SEMI-ANNUAL REPORT 10 RYDEX 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Wells Fargo & Co. ......................... 8,130 $241,867 Zions Bancorp.............................. 260 12,051 ---------- TOTAL COMMERCIAL BANKS 865,919 ---------- COMMERCIAL SERVICES & SUPPLIES 0.4% Allied Waste Industries, Inc.*............. 830 10,259 Avery Dennison Corp. ...................... 260 12,530 Cintas Corp. .............................. 320 9,475 Equifax, Inc. ............................. 320 12,247 Monster Worldwide, Inc.*................... 310 7,542 Pitney Bowes, Inc. ........................ 520 18,777 R.R. Donnelley & Sons Co. ................. 530 16,239 Robert Half International, Inc. ........... 390 9,243 Waste Management, Inc. .................... 1,220 44,042 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 140,354 ---------- COMMUNICATIONS EQUIPMENT 2.2% Ciena Corp.*............................... 210 7,100 Cisco Systems, Inc.*....................... 14,710 377,164 Corning, Inc. ............................. 3,880 103,635 JDS Uniphase Corp.*........................ 550 7,871 Juniper Networks, Inc.*.................... 1,290 35,630 Motorola, Inc. ............................ 5,560 55,378 QUALCOMM, Inc. ............................ 3,980 171,896 Tellabs, Inc.*............................. 1,020 5,263 ---------- TOTAL COMMUNICATIONS EQUIPMENT 763,937 ---------- COMPUTERS & PERIPHERALS 3.9% Apple, Inc.*............................... 2,170 377,471 Dell, Inc.*................................ 5,040 93,895 EMC Corp.*................................. 5,180 79,772 Hewlett-Packard Co. ....................... 6,080 281,808 International Business Machines Corp. ..... 3,420 412,794 Lexmark International, Inc. -- Class A*.... 230 7,220 NetApp, Inc.*.............................. 850 20,570 QLogic Corp.*.............................. 330 5,267 SanDisk Corp.*............................. 570 15,441 Sun Microsystems, Inc.*.................... 1,960 30,694 Teradata Corp.*............................ 440 9,368 ---------- TOTAL COMPUTERS & PERIPHERALS 1,334,300 ---------- CONSTRUCTION & ENGINEERING 0.2% Fluor Corp. ............................... 220 33,631 Jacobs Engineering Group, Inc.*............ 300 25,899 ---------- TOTAL CONSTRUCTION & ENGINEERING 59,530 ---------- CONSTRUCTION MATERIALS 0.1% Vulcan Materials Co. ...................... 270 18,581 ---------- TOTAL CONSTRUCTION MATERIALS 18,581 ---------- CONSUMER FINANCE 0.7% American Express Co. ...................... 2,850 136,857 Capital One Financial Corp. ............... 920 48,760 Discover Financial Services................ 1,180 21,488 SLM Corp.*................................. 1,150 21,309 ---------- TOTAL CONSUMER FINANCE 228,414 ---------- CONTAINERS & PACKAGING 0.1% Ball Corp. ................................ 240 12,907 Bemis Co., Inc. ........................... 250 6,575 Pactiv Corp.*.............................. 320 7,613 Sealed Air Corp. .......................... 400 10,116 ---------- TOTAL CONTAINERS & PACKAGING 37,211 ---------- DISTRIBUTORS 0.1% Genuine Parts Co. ......................... 410 17,409 ---------- TOTAL DISTRIBUTORS 17,409 ---------- DIVERSIFIED CONSUMER SERVICES 0.1% Apollo Group, Inc. -- Class A*............. 340 17,306 H&R Block, Inc. ........................... 800 17,496 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 34,802 ---------- DIVERSIFIED FINANCIAL SERVICES 3.9% Bank of America Corp. ..................... 10,960 411,438 CIT Group, Inc. ........................... 700 7,623 Citigroup, Inc. ........................... 12,840 324,467 CME Group, Inc. ........................... 130 59,468 IntercontinentalExchange, Inc.*............ 170 26,376 JPMorgan Chase & Co. ...................... 8,380 399,307 Leucadia National Corp. ................... 420 21,512 Moody's Corp. ............................. 510 18,850 NYSE Euronext.............................. 650 42,965 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 1,312,006 ---------- DIVERSIFIED TELECOMMUNICATION SERVICES 2.7% AT&T, Inc. ................................ 14,890 576,392 CenturyTel, Inc. .......................... 260 8,437 Citizens Communications Co. ............... 810 8,683 Embarq Corp. .............................. 380 15,797 Qwest Communications International, Inc. .. 3,790 19,556 Verizon Communications, Inc. .............. 7,080 272,438 Windstream Corp. .......................... 1,120 13,149 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 914,452 ---------- ELECTRIC UTILITIES 1.9% Allegheny Energy, Inc. .................... 410 22,058 American Electric Power Co., Inc. ......... 990 44,184 Duke Energy Corp. ......................... 3,120 57,127 Edison International....................... 800 41,736 Entergy Corp. ............................. 470 53,984 Exelon Corp. .............................. 1,630 139,332 FirstEnergy Corp. ......................... 750 56,730 FPL Group, Inc. ........................... 1,010 66,953 Pepco Holdings, Inc. ...................... 500 12,455 Pinnacle West Capital Corp. ............... 250 8,485 PPL Corp. ................................. 920 44,178
See Notes to Financial Statements. SEMI-ANNUAL REPORT 11 RYDEX 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Progress Energy, Inc. ..................... 640 $26,874 Southern Co. .............................. 1,890 70,365 ---------- TOTAL ELECTRIC UTILITIES 644,461 ---------- ELECTRICAL EQUIPMENT 0.4% Cooper Industries, Ltd. -- Class A......... 430 18,228 Emerson Electric Co. ...................... 1,940 101,384 Rockwell Automation, Inc. ................. 370 20,065 ---------- TOTAL ELECTRICAL EQUIPMENT 139,677 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Agilent Technologies, Inc.*................ 900 27,189 Jabil Circuit, Inc. ....................... 510 5,549 Molex, Inc. ............................... 350 9,933 Tyco Electronics, Ltd. .................... 1,200 44,892 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 87,563 ---------- ENERGY EQUIPMENT & SERVICES 2.6% Baker Hughes, Inc. ........................ 760 61,469 BJ Services Co. ........................... 720 20,354 Cameron International Corp.*............... 540 26,584 ENSCO International, Inc. ................. 360 22,943 Halliburton Co. ........................... 2,170 99,625 Nabors Industries, Ltd.*................... 690 25,903 National-Oilwell Varco, Inc.*.............. 1,020 69,819 Noble Corp. ............................... 660 37,145 Rowan Cos., Inc. .......................... 270 10,527 Schlumberger, Ltd. ........................ 2,950 296,622 Smith International, Inc. ................. 500 38,255 Transocean, Inc.*.......................... 780 115,019 Weatherford International, Ltd.*........... 840 67,763 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 892,028 ---------- FOOD & STAPLES RETAILING 2.3% Costco Wholesale Corp. .................... 1,070 76,238 CVS Caremark Corp. ........................ 3,530 142,506 Kroger Co. ................................ 1,660 45,235 Safeway, Inc. ............................. 1,090 34,444 SUPERVALU, Inc. ........................... 520 17,212 Sysco Corp. ............................... 1,490 45,549 Wal-Mart Stores, Inc. ..................... 5,830 338,023 Walgreen Co. .............................. 2,450 85,382 Whole Foods Market, Inc. .................. 340 11,098 ---------- TOTAL FOOD & STAPLES RETAILING 795,687 ---------- FOOD PRODUCTS 1.4% Archer-Daniels-Midland Co. ................ 1,590 70,055 Campbell Soup Co. ......................... 540 18,792 ConAgra Foods, Inc. ....................... 1,200 28,272 Dean Foods Co.*............................ 370 8,599 General Mills, Inc. ....................... 830 50,132 H.J. Heinz Co. ............................ 780 36,683 Hershey Co. ............................... 410 15,326 Kellogg Co. ............................... 640 32,749 Kraft Foods, Inc. -- Class A............... 3,780 119,561 McCormick & Co., Inc. ..................... 320 12,093 Sara Lee Corp. ............................ 1,760 25,538 Tyson Foods, Inc. -- Class A............... 680 12,104 Wm. Wrigley Jr. Co. ....................... 530 40,365 ---------- TOTAL FOOD PRODUCTS 470,269 ---------- GAS UTILITIES 0.1% Nicor, Inc. ............................... 110 3,863 Questar Corp. ............................. 430 26,673 ---------- TOTAL GAS UTILITIES 30,536 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 1.6% Baxter International, Inc. ................ 1,570 97,842 Becton, Dickinson & Co. ................... 600 53,640 Boston Scientific Corp.*................... 3,310 44,122 C.R. Bard, Inc. ........................... 250 23,542 Covidien, Ltd. ............................ 1,230 57,429 Hospira, Inc.*............................. 390 16,048 Medtronic, Inc. ........................... 2,770 134,844 St Jude Medical, Inc.*..................... 850 37,213 Stryker Corp. ............................. 590 38,250 Varian Medical Systems, Inc.*.............. 310 14,533 Zimmer Holdings, Inc.*..................... 580 43,013 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 560,476 ---------- HEALTH CARE PROVIDERS & SERVICES 1.6% Aetna, Inc. ............................... 1,230 53,628 AmerisourceBergen Corp. ................... 400 16,220 Cardinal Health, Inc. ..................... 880 45,822 CIGNA Corp. ............................... 690 29,470 Coventry Health Care, Inc.*................ 380 16,997 Express Scripts, Inc.*..................... 620 43,412 Humana, Inc.*.............................. 420 20,072 Laboratory Corp. of America Holdings*...... 270 20,417 McKesson Corp. ............................ 710 37,005 Medco Health Solutions, Inc.*.............. 1,290 63,907 Patterson Cos., Inc.*...................... 320 10,944 Quest Diagnostics, Inc. ................... 390 19,570 Tenet Healthcare Corp.*.................... 1,170 7,488 UnitedHealth Group, Inc. .................. 3,090 100,827 WellPoint, Inc.*........................... 1,340 66,665 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 552,444 ---------- HEALTH CARE TECHNOLOGY 0.0%(A) IMS Health, Inc. .......................... 450 11,138 ---------- TOTAL HEALTH CARE TECHNOLOGY 11,138 ---------- HOTELS, RESTAURANTS & LEISURE 1.2% Carnival Corp. ............................ 1,080 43,384 Darden Restaurants, Inc. .................. 350 12,453 International Game Technology.............. 770 26,750 Marriott International, Inc. -- Class A.... 740 25,382 McDonald's Corp. .......................... 2,840 169,207 Starbucks Corp.*........................... 1,800 29,214 Starwood Hotels & Resorts Worldwide, Inc. ................................... 460 24,017 Wendy's International, Inc. ............... 220 6,380
See Notes to Financial Statements. SEMI-ANNUAL REPORT 12 RYDEX 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) Wyndham Worldwide Corp. ................... 440 $9,451 Yum! Brands, Inc. ......................... 1,170 47,595 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 393,833 ---------- HOUSEHOLD DURABLES 0.4% Black & Decker Corp. ...................... 150 9,844 Centex Corp. .............................. 300 6,246 D.R. Horton, Inc. ......................... 680 10,533 Fortune Brands, Inc. ...................... 380 25,696 Harman International Industries, Inc. ..... 150 6,131 KB HOME.................................... 190 4,275 Leggett & Platt, Inc. ..................... 410 6,806 Lennar Corp. -- Class A.................... 340 6,263 Newell Rubbermaid, Inc. ................... 680 13,960 Pulte Homes, Inc. ......................... 530 6,911 Snap-on, Inc. ............................. 140 8,303 Stanley Works.............................. 190 9,166 Whirlpool Corp. ........................... 190 13,828 ---------- TOTAL HOUSEHOLD DURABLES 127,962 ---------- HOUSEHOLD PRODUCTS 2.0% Clorox Co. ................................ 340 18,020 Colgate-Palmolive Co. ..................... 1,260 89,082 Kimberly-Clark Corp. ...................... 1,040 66,550 Procter & Gamble Co. ...................... 7,590 508,909 ---------- TOTAL HOUSEHOLD PRODUCTS 682,561 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2% AES Corp.*................................. 1,650 28,644 Constellation Energy Group, Inc. .......... 440 37,246 Dynegy, Inc. -- Class A*................... 1,220 10,516 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 76,406 ---------- INDUSTRIAL CONGLOMERATES 3.0% 3M Co. .................................... 1,750 134,575 General Electric Co. ...................... 24,640 805,728 Textron, Inc. ............................. 610 37,216 Tyco International, Ltd. .................. 1,200 56,148 ---------- TOTAL INDUSTRIAL CONGLOMERATES 1,033,667 ---------- INSURANCE 3.5% ACE, Ltd. ................................. 810 48,835 AFLAC, Inc. ............................... 1,170 78,004 Allstate Corp. ............................ 1,380 69,497 Ambac Financial Group, Inc. ............... 710 3,287 American International Group, Inc. ........ 6,220 287,364 Aon Corp. ................................. 750 34,042 Assurant, Inc. ............................ 240 15,600 Chubb Corp. ............................... 910 48,203 Cincinnati Financial Corp. ................ 410 14,719 Genworth Financial, Inc. -- Class A........ 1,070 24,674 Hartford Financial Services Group, Inc. ... 770 54,878 Lincoln National Corp. .................... 650 34,944 Loews Corp. ............................... 1,080 45,479 Marsh & McLennan Cos., Inc. ............... 1,290 35,591 MBIA, Inc. ................................ 520 5,408 MetLife, Inc. ............................. 1,750 106,487 Principal Financial Group, Inc. ........... 640 34,342 Progressive Corp. ......................... 1,670 30,377 Prudential Financial, Inc. ................ 1,100 83,281 SAFECO Corp. .............................. 220 14,683 Torchmark Corp. ........................... 220 14,243 Travelers Cos., Inc. ...................... 1,530 77,112 Unum Group................................. 860 19,961 XL Capital, Ltd. -- Class A................ 440 15,352 ---------- TOTAL INSURANCE 1,196,363 ---------- INTERNET & CATALOG RETAIL 0.2% Amazon.com, Inc.*.......................... 760 59,759 Expedia, Inc.*............................. 510 12,883 IAC/InterActiveCorp*....................... 450 9,364 ---------- TOTAL INTERNET & CATALOG RETAIL 82,006 ---------- INTERNET SOFTWARE & SERVICES 1.6% Akamai Technologies, Inc.*................. 410 14,666 eBay, Inc.*................................ 2,750 86,047 Google, Inc. -- Class A*................... 570 327,345 VeriSign, Inc.*............................ 530 19,107 Yahoo!, Inc.*.............................. 3,300 90,453 ---------- TOTAL INTERNET SOFTWARE & SERVICES 537,618 ---------- IT SERVICES 0.8% Affiliated Computer Services, Inc. -- Class A*...................................... 240 12,713 Automatic Data Processing, Inc. ........... 1,290 57,018 Cognizant Technology Solutions Corp. -- Class A*....................... 710 22,897 Computer Sciences Corp.*................... 400 17,436 Convergys Corp.*........................... 310 4,873 Electronic Data Systems Corp. ............. 1,260 23,386 Fidelity National Information Services, Inc. ................................... 420 15,145 Fiserv, Inc.*.............................. 410 20,726 Paychex, Inc. ............................. 800 29,096 Total System Services, Inc. ............... 490 11,662 Unisys Corp.*.............................. 870 3,619 Western Union Co. ......................... 1,850 42,550 ---------- TOTAL IT SERVICES 261,121 ---------- LEISURE EQUIPMENT & PRODUCTS 0.1% Brunswick Corp. ........................... 220 3,670 Eastman Kodak Co. ......................... 710 12,702 Hasbro, Inc. .............................. 350 12,446 Mattel, Inc. .............................. 890 16,687 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 45,505 ---------- LIFE SCIENCES TOOLS & SERVICES 0.3% Applera Corp. -- Applied Biosystems Group.. 410 13,083 Millipore Corp.*........................... 140 9,814 PerkinElmer, Inc. ......................... 290 7,703 Thermo Electron Corp.*..................... 1,030 59,606 Waters Corp.*.............................. 250 15,365 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 105,571 ----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 13 RYDEX 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) MACHINERY 1.7% Caterpillar, Inc. ......................... 1,540 $126,095 Cummins, Inc. ............................. 500 31,325 Danaher Corp. ............................. 630 49,153 Deere & Co. ............................... 1,080 90,795 Dover Corp. ............................... 470 23,251 Eaton Corp. ............................... 400 35,136 Illinois Tool Works, Inc. ................. 990 51,767 Ingersoll-Rand Co., Ltd. -- Class A........ 670 29,735 ITT Corp. ................................. 450 28,800 Manitowoc Co., Inc. ....................... 320 12,102 PACCAR, Inc. .............................. 900 42,588 Pall Corp. ................................ 300 10,431 Parker-Hannifin Corp. ..................... 420 33,537 Terex Corp.*............................... 250 17,420 ---------- TOTAL MACHINERY 582,135 ---------- MEDIA 2.5% CBS Corp. -- Class B....................... 1,680 38,758 Clear Channel Communications, Inc. ........ 1,230 37,085 Comcast Corp. -- Class A................... 7,430 152,686 DIRECTV Group, Inc.*....................... 1,760 43,366 E.W. Scripps Co. -- Class A................ 220 9,880 Gannett Co., Inc. ......................... 570 16,313 Interpublic Group of Cos., Inc.*........... 1,160 10,498 McGraw-Hill Cos., Inc. .................... 800 32,792 Meredith Corp. ............................ 90 2,917 New York Times Co. -- Class A.............. 350 6,825 News Corp. -- Class A...................... 5,680 101,672 Omnicom Group, Inc. ....................... 790 37,715 Time Warner, Inc. ......................... 8,820 130,977 Viacom, Inc. -- Class B*................... 1,580 60,735 Walt Disney Co. ........................... 4,650 150,799 Washington Post Co. -- Class B............. 11 7,212 ---------- TOTAL MEDIA 840,230 ---------- METALS & MINING 1.0% Alcoa, Inc. ............................... 2,010 69,908 Allegheny Technologies, Inc. .............. 250 17,208 Freeport-McMoRan Copper & Gold, Inc. ...... 940 106,925 Newmont Mining Corp. ...................... 1,120 49,515 Nucor Corp. ............................... 710 53,605 Titanium Metals Corp. ..................... 240 3,658 United States Steel Corp. ................. 290 44,645 ---------- TOTAL METALS & MINING 345,464 ---------- MULTI-UTILITIES 0.9% Ameren Corp. .............................. 510 23,134 CenterPoint Energy, Inc. .................. 810 12,328 CMS Energy Corp. .......................... 560 8,165 Consolidated Edison, Inc. ................. 670 27,872 Dominion Resources, Inc. .................. 1,420 61,614 DTE Energy Co. ............................ 400 16,124 Integrys Energy Group, Inc................. 190 9,099 NiSource, Inc. ............................ 680 12,172 PG&E Corp. ................................ 880 35,200 Public Service Enterprise Group, Inc. ..... 1,250 54,887 Sempra Energy.............................. 640 36,269 TECO Energy, Inc. ......................... 520 8,325 Xcel Energy, Inc. ......................... 1,060 22,048 ---------- TOTAL MULTI-UTILITIES 327,237 ---------- MULTILINE RETAIL 0.7% Big Lots, Inc.*............................ 200 5,406 Dillard's, Inc. -- Class A................. 140 2,856 Family Dollar Stores, Inc. ................ 350 7,490 J.C. Penney Co., Inc. ..................... 550 23,375 Kohl's Corp.*.............................. 770 37,615 Macy's, Inc. .............................. 1,070 27,060 Nordstrom, Inc. ........................... 440 15,514 Sears Holdings Corp.*...................... 180 17,750 Target Corp. .............................. 2,020 107,323 ---------- TOTAL MULTILINE RETAIL 244,389 ---------- OFFICE ELECTRONICS 0.1% Xerox Corp. ............................... 2,260 31,572 ---------- TOTAL OFFICE ELECTRONICS 31,572 ---------- OIL, GAS & CONSUMABLE FUELS 9.6% Anadarko Petroleum Corp. .................. 1,150 76,544 Apache Corp. .............................. 820 110,437 Chesapeake Energy Corp. ................... 1,130 58,421 Chevron Corp. ............................. 5,120 492,288 ConocoPhillips............................. 3,850 331,677 CONSOL Energy, Inc. ....................... 450 36,432 Devon Energy Corp. ........................ 1,100 124,740 El Paso Corp. ............................. 1,730 29,652 EOG Resources, Inc. ....................... 610 79,593 Exxon Mobil Corp. ......................... 13,200 1,228,524 Hess Corp. ................................ 690 73,278 Marathon Oil Corp. ........................ 1,750 79,747 Murphy Oil Corp. .......................... 470 42,460 Noble Energy, Inc. ........................ 420 36,540 Occidental Petroleum Corp. ................ 2,030 168,916 Peabody Energy Corp. ...................... 670 40,957 Range Resources Corp. ..................... 370 24,561 Spectra Energy Corp. ...................... 1,560 38,532 Sunoco, Inc. .............................. 290 13,459 Tesoro Corp. .............................. 340 8,548 Valero Energy Corp. ....................... 1,320 64,482 Williams Cos., Inc. ....................... 1,440 51,120 XTO Energy, Inc. .......................... 1,260 77,944 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 3,288,852 ---------- PAPER & FOREST PRODUCTS 0.2% International Paper Co. ................... 1,060 27,740 MeadWestvaco Corp. ........................ 430 11,309 Weyerhaeuser Co. .......................... 520 33,218 ---------- TOTAL PAPER & FOREST PRODUCTS 72,267 ----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 14 RYDEX 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) PERSONAL PRODUCTS 0.2% Avon Products, Inc. ....................... 1,050 $40,971 Estee Lauder Cos., Inc -- Class A.......... 280 12,771 ---------- TOTAL PERSONAL PRODUCTS 53,742 ---------- PHARMACEUTICALS 5.2% Abbott Laboratories........................ 3,810 200,977 Allergan, Inc. ............................ 750 42,277 Barr Pharmaceuticals, Inc.*................ 270 13,562 Bristol-Myers Squibb Co. .................. 4,880 107,214 Eli Lilly & Co. ........................... 2,440 117,462 Forest Laboratories, Inc.*................. 770 26,727 Johnson & Johnson.......................... 6,990 468,959 King Pharmaceuticals, Inc.*................ 610 5,728 Merck & Co., Inc. ......................... 5,340 203,134 Mylan Laboratories, Inc. .................. 750 9,877 Pfizer, Inc. .............................. 16,680 335,435 Schering-Plough Corp. ..................... 4,000 73,640 Watson Pharmaceuticals, Inc.*.............. 260 8,070 Wyeth...................................... 3,300 146,751 ---------- TOTAL PHARMACEUTICALS 1,759,813 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) 1.1% Apartment Investment & Management Co. -- Class A.......................... 230 8,505 AvalonBay Communities, Inc. ............... 190 18,953 Boston Properties, Inc. ................... 290 29,142 Developers Diversified Realty Corp. ....... 290 12,456 Equity Residential Properties Trust........ 670 27,818 General Growth Properties, Inc. ........... 660 27,034 HCP, Inc. ................................. 580 20,706 Host Hotels & Resorts, Inc. ............... 1,290 22,188 Kimco Realty Corp. ........................ 620 24,744 Plum Creek Timber Co., Inc. ............... 420 17,153 ProLogis................................... 640 40,070 Public Storage, Inc. ...................... 310 28,117 Simon Property Group, Inc. ................ 550 54,923 Vornado Realty Trust....................... 330 30,720 ---------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 362,529 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.0%(A) CB Richard Ellis Group, Inc. -- Class A*... 430 9,942 ---------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 9,942 ---------- ROAD & RAIL 0.9% Burlington Northern Santa Fe Corp. ........ 730 74,861 CSX Corp. ................................. 1,000 62,950 Norfolk Southern Corp. .................... 930 55,409 Ryder System, Inc. ........................ 140 9,586 Union Pacific Corp. ....................... 640 92,922 ---------- TOTAL ROAD & RAIL 295,728 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.2% Advanced Micro Devices, Inc.*.............. 1,490 8,880 Altera Corp. .............................. 760 16,173 Analog Devices, Inc. ...................... 730 23,513 Applied Materials, Inc. ................... 3,340 62,324 Broadcom Corp. -- Class A*................. 1,150 29,854 Intel Corp. ............................... 14,280 317,873 KLA-Tencor Corp. .......................... 440 19,219 Linear Technology Corp. ................... 550 19,228 LSI Logic Corp.*........................... 1,630 10,106 MEMC Electronic Materials, Inc.*........... 560 35,263 Microchip Technology, Inc. ................ 470 17,273 Micron Technology, Inc.*................... 1,880 14,514 National Semiconductor Corp. .............. 560 11,418 Novellus Systems, Inc.*.................... 250 5,465 NVIDIA Corp.*.............................. 1,370 28,154 Teradyne, Inc.*............................ 430 5,715 Texas Instruments, Inc. ................... 3,270 95,353 Xilinx, Inc. .............................. 710 17,587 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 737,912 ---------- SOFTWARE 2.9% Adobe Systems, Inc.*....................... 1,310 48,850 Autodesk, Inc.*............................ 570 21,660 BMC Software, Inc.*........................ 470 16,337 CA, Inc. .................................. 960 21,254 Citrix Systems, Inc.*...................... 460 15,065 Compuware Corp.*........................... 680 5,127 Electronic Arts, Inc.*..................... 780 40,146 Intuit, Inc.*.............................. 810 21,846 Microsoft Corp. ........................... 19,750 563,270 Novell, Inc.*.............................. 870 5,464 Oracle Corp.*.............................. 9,760 203,496 Symantec Corp.*............................ 2,090 35,990 ---------- TOTAL SOFTWARE 998,505 ---------- SPECIALTY RETAIL 1.4% Abercrombie & Fitch Co. -- Class A......... 210 15,605 AutoNation, Inc.*.......................... 330 5,283 AutoZone, Inc.*............................ 110 13,283 Bed Bath & Beyond, Inc.*................... 650 21,125 Best Buy Co., Inc. ........................ 870 37,428 GameStop Corp. -- Class A*................. 400 22,016 Gap, Inc. ................................. 1,120 20,854 Home Depot, Inc. .......................... 4,160 119,808 Limited Brands, Inc. ...................... 770 14,260 Lowe's Cos., Inc. ......................... 3,610 90,936 Office Depot, Inc.*........................ 670 8,496 OfficeMax, Inc. ........................... 190 3,471 RadioShack Corp. .......................... 320 4,448 Sherwin-Williams Co. ...................... 250 13,830 Staples, Inc. ............................. 1,730 37,541 Tiffany & Co. ............................. 310 13,497 TJX Cos., Inc. ............................ 1,080 34,798 ---------- TOTAL SPECIALTY RETAIL 476,679 ---------- TEXTILES, APPAREL & LUXURY GOODS 0.4% Coach, Inc.*............................... 870 30,946 Jones Apparel Group, Inc. ................. 210 3,324 Liz Claiborne, Inc. ....................... 250 4,423
See Notes to Financial Statements. SEMI-ANNUAL REPORT 15 RYDEX 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS (CONTINUED) NIKE, Inc. -- Class B...................... 940 $62,792 Polo Ralph Lauren Corp. ................... 150 9,316 V.F. Corp. ................................ 220 16,364 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 127,165 ---------- THRIFTS & MORTGAGE FINANCE 0.5% Countrywide Financial Corp. ............... 1,430 8,265 Federal Home Loan Mortgage Corp. .......... 1,590 39,607 Federal National Mortgage Association...... 2,410 68,203 Hudson City Bancorp, Inc. ................. 1,280 24,487 MGIC Investment Corp. ..................... 290 3,779 Sovereign Bancorp, Inc. ................... 890 6,648 Washington Mutual, Inc. ................... 2,610 32,077 ---------- TOTAL THRIFTS & MORTGAGE FINANCE 183,066 ---------- TOBACCO 1.2% Altria Group, Inc. ........................ 5,200 104,000 Philip Morris International, Inc.*......... 5,200 265,356 Reynolds American, Inc. ................... 420 22,617 UST, Inc. ................................. 370 19,266 ---------- TOTAL TOBACCO 411,239 ---------- TRADING COMPANIES & DISTRIBUTORS 0.0%(A) W.W. Grainger, Inc. ....................... 170 14,741 ---------- TOTAL TRADING COMPANIES & DISTRIBUTORS 14,741 ---------- WIRELESS TELECOMMUNICATION SERVICES 0.3% American Tower Corp. -- Class A*........... 1,000 43,420 Sprint Nextel Corp. ....................... 7,030 56,170 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 99,590 ---------- TOTAL COMMON STOCKS (Cost $29,687,140) 29,760,380 ----------
FACE MARKET AMOUNT VALUE ---------------------------------------------------------------------- REPURCHASE AGREEMENTS 10.6% State Street Bank & Trust Co., 1.850%, dated 04/30/08, to be repurchased at $3,597,185 on 05/01/08 collateralized by $3,640,000 FHLB at 5.700% due 04/03/28 with a value of $3,671,850...................... 3,597,000 $3,597,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $3,597,000) 3,597,000 ----------- TOTAL INVESTMENTS 97.8% (Cost $33,284,140) 33,357,380 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--2.2% 735,699 ----------- NET ASSETS--100.0% $34,093,079 ----------------------------------------------------------------------
UNREALIZED CONTRACTS GAIN (LOSS) --------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2008 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $24,324,300)..................... 351 $1,070,403 ----------
UNITS --------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED July 2008 S&P 500 Index Swap, Terminating 07/31/08** (Notional Market Value $14,880,308)............................... 10,523 $ (57,455) ---------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P 500 Index +/- financing at a variable rate. FHLB--Federal Home Loan Bank (a) Amount represents less than 0.05% of net assets. See Notes to Financial Statements. SEMI-ANNUAL REPORT 16 RYDEX INVERSE 2x S&P 500 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ---------------------------------------------------------------------- REPURCHASE AGREEMENTS 72.8% State Street Bank & Trust Co., 1.850%, dated 04/30/08, to be repurchased at $42,846,202 on 05/01/08 collateralized by $43,325,000 FHLB at 5.700% due 04/03/28 with a value of $43,704,094.... 42,844,000 $42,844,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $42,844,000) 42,844,000 ----------- UNITED STATES TREASURY BILLS 11.1% United States Treasury Bills 0.757%, due 05/01/08(a)+................ 1,800,000 1,800,000 0.998%, due 05/08/08(a)+................ 4,750,000 4,748,947 ----------- TOTAL UNITED STATES TREASURY BILLS (Cost $6,548,947) 6,548,947 ----------- TOTAL INVESTMENTS 83.9% (Cost $49,392,947) 49,392,947 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--16.1% 9,505,812 ----------- NET ASSETS--100.0% $58,898,759 ----------------------------------------------------------------------
UNREALIZED GAIN CONTRACTS (LOSS) --------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2008 S&P 500 Index Mini Futures Contracts (Aggregate Market Value of Contracts $9,979,200)...................... 144 $(317,848) ---------
UNITS ---------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT July 2008 S&P 500 Index Swap, Terminating 07/31/08* (Notional Market Value $104,711,073).............................. 76,654 $404,309 ----------------------------------------------------------------------
* Price return based on S&P 500 Index +/- financing at a variable rate. (a) Zero coupon bond--Interest rate represents current yield to maturity. + Security or portions of the security was pledged as collateral for a swap agreement sold short. FHLB --Federal Home Loan Bank See Notes to Financial Statements. SEMI-ANNUAL REPORT 17 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------- COMMON STOCKS 86.0% AEROSPACE & DEFENSE 0.8% Alliant Techsystems, Inc.*................. 80 $8,798 BE Aerospace, Inc.*........................ 240 9,687 DRS Technologies, Inc. .................... 110 6,868 --------- TOTAL AEROSPACE & DEFENSE 25,353 --------- AIRLINES 0.2% Airtran Holdings, Inc.*.................... 290 989 Alaska Air Group, Inc.*.................... 100 2,148 JetBlue Airways Corp.*..................... 470 2,369 --------- TOTAL AIRLINES 5,506 --------- AUTO COMPONENTS 1.0% ArvinMeritor, Inc. ........................ 190 2,839 BorgWarner, Inc. .......................... 300 14,745 Gentex Corp. .............................. 370 6,911 Lear Corp.*................................ 200 5,714 Modine Manufacturing Co. .................. 80 1,406 --------- TOTAL AUTO COMPONENTS 31,615 --------- AUTOMOBILES 0.1% Thor Industries, Inc. ..................... 90 2,729 --------- TOTAL AUTOMOBILES 2,729 --------- BEVERAGES 0.3% Hansen Natural Corp.*...................... 160 5,662 PepsiAmericas, Inc. ....................... 150 3,855 --------- TOTAL BEVERAGES 9,517 --------- BIOTECHNOLOGY 1.3% Cephalon, Inc.*............................ 170 10,609 Millennium Pharmaceuticals, Inc.*.......... 840 20,891 PDL BioPharma, Inc.*....................... 300 3,978 Vertex Pharmaceuticals, Inc.*.............. 340 8,677 --------- TOTAL BIOTECHNOLOGY 44,155 --------- CAPITAL MARKETS 1.6% Affiliated Managers Group, Inc.*........... 90 8,941 Apollo Investment Corp. ................... 310 5,016 Eaton Vance Corp. ......................... 300 10,980 Jefferies Group, Inc. ..................... 290 5,452 Raymond James Financial, Inc. ............. 250 7,192 SEI Investments Co. ....................... 330 7,679 Waddell & Reed Financial, Inc. -- Class A.. 220 7,449 --------- TOTAL CAPITAL MARKETS 52,709 --------- CHEMICALS 3.3% Airgas, Inc. .............................. 210 10,107 Albemarle Corp. ........................... 200 7,482 Cabot Corp. ............................... 170 4,957 CF Industries Holdings, Inc. .............. 120 16,044 Chemtura Corp. ............................ 620 4,291 Cytec Industries, Inc. .................... 110 6,491 Ferro Corp. ............................... 110 1,934 FMC Corp. ................................. 190 11,928 Lubrizol Corp. ............................ 180 10,498 Minerals Technologies, Inc. ............... 50 3,387 Olin Corp. ................................ 190 3,832 RPM International, Inc. ................... 310 6,913 Scotts Miracle-Gro Co. .................... 110 3,645 Sensient Technologies Corp. ............... 120 3,572 Terra Industries, Inc.*.................... 230 8,708 Valspar Corp. ............................. 260 5,715 --------- TOTAL CHEMICALS 109,504 --------- COMMERCIAL BANKS 2.2% Associated Banc-Corp. ..................... 330 9,329 Bank of Hawaii Corp. ...................... 120 6,580 Cathay General Bancorp..................... 130 2,216 City National Corp. ....................... 100 4,852 Colonial BancGroup, Inc. .................. 510 4,151 Cullen/Frost Bankers, Inc. ................ 150 8,373 First Community Bancorp.................... 60 1,289 FirstMerit Corp. .......................... 210 4,309 SVB Financial Group*....................... 80 3,893 Synovus Financial Corp. ................... 850 10,064 TCF Financial Corp. ....................... 280 4,872 Webster Financial Corp. ................... 140 3,647 Westamerica Bancorp........................ 70 4,091 Wilmington Trust Corp. .................... 170 5,590 --------- TOTAL COMMERCIAL BANKS 73,256 --------- COMMERCIAL SERVICES & SUPPLIES 3.3% Brink's Co. ............................... 120 8,730 ChoicePoint, Inc.*......................... 180 8,703 Copart, Inc.*.............................. 180 7,357 Corporate Executive Board Co. ............. 90 3,921 Corrections Corp. of America*.............. 320 8,160 Deluxe Corp. .............................. 130 2,764 Dun & Bradstreet Corp. .................... 150 12,645 Herman Miller, Inc. ....................... 150 3,500 HNI Corp. ................................. 110 2,395 Kelly Services, Inc. ...................... 60 1,335 Korn/Ferry International*.................. 120 2,239 Manpower, Inc. ............................ 210 14,097 Mine Safety Appliances Co. ................ 80 2,974 Navigant Consulting, Inc.*................. 120 2,414 Republic Services, Inc. ................... 410 13,034 Rollins, Inc. ............................. 110 1,752 Stericycle, Inc.*.......................... 230 12,277 --------- TOTAL COMMERCIAL SERVICES & SUPPLIES 108,297 --------- COMMUNICATIONS EQUIPMENT 1.8% 3Com Corp.*................................ 1,040 2,486 ADC Telecommunications, Inc.*.............. 300 4,206 Adtran, Inc. .............................. 150 3,549 Avocent Corp.*............................. 120 2,341 CommScope, Inc.*........................... 170 8,083 Dycom Industries, Inc.*.................... 110 1,582 F5 Networks, Inc.*......................... 220 4,979 Foundry Networks, Inc.*.................... 390 4,965 Harris Corp. .............................. 350 18,910 Plantronics, Inc. ......................... 130 3,238 Polycom, Inc.*............................. 230 5,152 --------- TOTAL COMMUNICATIONS EQUIPMENT 59,491 --------- COMPUTERS & PERIPHERALS 1.2% Diebold, Inc. ............................. 170 6,664 Imation Corp. ............................. 80 1,875 NCR Corp.*................................. 450 11,084
See Notes to Financial Statements. SEMI-ANNUAL REPORT 18 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------- COMMON STOCKS (CONTINUED) Palm, Inc. ................................ 280 $1,613 Western Digital Corp.*..................... 570 16,524 --------- TOTAL COMPUTERS & PERIPHERALS 37,760 --------- CONSTRUCTION & ENGINEERING 1.1% Granite Construction, Inc. ................ 80 2,744 KBR, Inc. ................................. 440 12,689 Quanta Services, Inc.*..................... 440 11,678 URS Corp.*................................. 220 8,875 --------- TOTAL CONSTRUCTION & ENGINEERING 35,986 --------- CONSTRUCTION MATERIALS 0.4% Martin Marietta Materials, Inc. ........... 110 12,032 --------- TOTAL CONSTRUCTION MATERIALS 12,032 --------- CONSUMER FINANCE 0.1% AmeriCredit Corp.*......................... 300 4,188 --------- TOTAL CONSUMER FINANCE 4,188 --------- CONTAINERS & PACKAGING 0.8% AptarGroup, Inc. .......................... 180 7,947 Packaging Corp. of America................. 240 5,275 Sonoco Products Co. ....................... 260 8,567 Temple-Inland, Inc. ....................... 270 3,151 --------- TOTAL CONTAINERS & PACKAGING 24,940 --------- DIVERSIFIED CONSUMER SERVICES 1.5% Career Education Corp.*.................... 230 4,634 Corinthian Colleges, Inc.*................. 220 2,497 DeVry, Inc. ............................... 150 8,550 ITT Educational Services, Inc.*............ 80 6,133 Matthews International Corp. -- Class A.... 80 3,955 Regis Corp. ............................... 110 3,212 Service Corp. International................ 680 7,555 Sotheby's.................................. 170 4,709 Strayer Education, Inc. ................... 40 7,428 --------- TOTAL DIVERSIFIED CONSUMER SERVICES 48,673 --------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.1% Cincinnati Bell, Inc.*..................... 640 2,970 --------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 2,970 --------- ELECTRIC UTILITIES 1.6% Aquila, Inc.*.............................. 970 3,492 DPL, Inc. ................................. 290 8,071 Great Plains Energy, Inc. ................. 220 5,641 Hawaiian Electric Industries, Inc. ........ 220 5,423 IDACORP, Inc. ............................. 120 3,893 Northeast Utilities........................ 400 10,528 Sierra Pacific Resources................... 600 8,178 Westar Energy, Inc. ....................... 250 5,797 --------- TOTAL ELECTRIC UTILITIES 51,023 --------- ELECTRICAL EQUIPMENT 1.2% AMETEK, Inc. .............................. 280 13,586 Hubbell, Inc. -- Class A................... 150 6,709 Roper Industries, Inc. .................... 230 14,287 Thomas & Betts Corp.*...................... 130 4,870 --------- TOTAL ELECTRICAL EQUIPMENT 39,452 --------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.9% Amphenol Corp. ............................ 460 21,243 Arrow Electronics, Inc.*................... 320 8,707 Avnet, Inc.*............................... 390 10,214 Ingram Micro, Inc. -- Class A*............. 380 6,464 KEMET Corp.*............................... 220 895 National Instruments Corp. ................ 150 4,413 Tech Data Corp.*........................... 140 4,706 Vishay Intertechnology, Inc.*.............. 480 4,536 --------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 61,178 --------- ENERGY EQUIPMENT & SERVICES 2.9% Exterran Holdings, Inc.*................... 170 11,354 FMC Technologies, Inc.*.................... 340 22,848 Helmerich & Payne, Inc. ................... 270 14,513 Patterson-UTI Energy, Inc. ................ 400 11,176 Pride International, Inc.*................. 430 18,253 Superior Energy Services, Inc.*............ 210 9,320 Tidewater, Inc. ........................... 140 9,131 --------- TOTAL ENERGY EQUIPMENT & SERVICES 96,595 --------- FOOD & STAPLES RETAILING 0.3% BJ's Wholesale Club, Inc.*................. 150 5,718 Ruddick Corp. ............................. 100 3,870 --------- TOTAL FOOD & STAPLES RETAILING 9,588 --------- FOOD PRODUCTS 1.1% Corn Products International, Inc. ......... 190 8,812 Hormel Foods Corp. ........................ 190 7,488 J.M. Smucker Co. .......................... 140 6,983 Lancaster Colony Corp. .................... 50 1,910 Smithfield Foods, Inc.*.................... 300 8,604 Tootsie Roll Industries, Inc. ............. 70 1,703 --------- TOTAL FOOD PRODUCTS 35,500 --------- GAS UTILITIES 2.1% AGL Resources, Inc. ....................... 200 6,800 Energen Corp. ............................. 190 12,966 Equitable Resources, Inc. ................. 320 21,238 National Fuel Gas Co. ..................... 220 11,260 Oneok, Inc. ............................... 270 12,992 WGL Holdings, Inc. ........................ 130 4,264 --------- TOTAL GAS UTILITIES 69,520 --------- HEALTH CARE EQUIPMENT & SUPPLIES 3.5% Advanced Medical Optics, Inc.*............. 160 3,360 Beckman Coulter, Inc. ..................... 160 10,928 Dentsply International, Inc. .............. 390 15,159 Edwards Lifesciences Corp.*................ 150 8,313 Gen-Probe, Inc.*........................... 140 7,890 Hill-Rom Holdings, Inc. ................... 160 4,021 Hologic, Inc.*............................. 660 19,266 Intuitive Surgical, Inc.*.................. 100 28,926 Kinetic Concepts, Inc.*.................... 140 5,552 ResMed, Inc.*.............................. 200 8,624 STERIS Corp. .............................. 160 4,434 --------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 116,473 --------- HEALTH CARE PROVIDERS & SERVICES 2.4% Apria Healthcare Group, Inc.*.............. 110 1,938 Community Health Systems, Inc.*............ 250 9,383 Health Management Associates, Inc. -- Class A*...................................... 630 4,492
See Notes to Financial Statements. SEMI-ANNUAL REPORT 19 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------- COMMON STOCKS (CONTINUED) Health Net, Inc.*.......................... 280 $8,201 Henry Schein, Inc.*........................ 230 12,735 Kindred Healthcare, Inc.*.................. 80 1,898 LifePoint Hospitals, Inc.*................. 150 4,518 Lincare Holdings, Inc.*.................... 190 4,625 Omnicare, Inc. ............................ 310 6,309 Psychiatric Solutions, Inc.*............... 140 4,859 Universal Health Services, Inc. -- Class B....................................... 130 8,143 VCA Antech, Inc.*.......................... 220 7,121 WellCare Health Plans, Inc.*............... 110 4,816 --------- TOTAL HEALTH CARE PROVIDERS & SERVICES 79,038 --------- HEALTH CARE TECHNOLOGY 0.2% Cerner Corp.*.............................. 170 7,866 --------- TOTAL HEALTH CARE TECHNOLOGY 7,866 --------- HOTELS, RESTAURANTS & LEISURE 1.2% Bob Evans Farms, Inc. ..................... 80 2,246 Boyd Gaming Corp. ......................... 150 2,813 Brinker International, Inc. ............... 260 5,899 CBRL Group, Inc. .......................... 60 2,216 Cheesecake Factory, Inc.*.................. 180 4,073 Chipotle Mexican Grill, Inc. -- Class A*... 90 8,832 International Speedway Corp. -- Class A.... 80 3,394 Life Time Fitness, Inc.*................... 90 3,272 Ruby Tuesday, Inc. ........................ 130 1,106 Scientific Games Corp. -- Class A*......... 170 4,787 --------- TOTAL HOTELS, RESTAURANTS & LEISURE 38,638 --------- HOUSEHOLD DURABLES 1.3% American Greetings Corp. -- Class A........ 130 2,327 Blyth, Inc. ............................... 60 1,010 Furniture Brands International, Inc. ...... 130 1,762 Hovnanian Enterprises, Inc. -- Class A*.... 100 1,182 MDC Holdings, Inc. ........................ 90 3,922 Mohawk Industries, Inc.*................... 140 10,667 NVR, Inc.*................................. 10 6,135 Ryland Group, Inc. ........................ 110 3,518 Toll Brothers, Inc.*....................... 330 7,471 Tupperware Brands Corp. ................... 160 6,304 --------- TOTAL HOUSEHOLD DURABLES 44,298 --------- HOUSEHOLD PRODUCTS 0.7% Church & Dwight Co., Inc. ................. 170 9,659 Energizer Holdings, Inc.*.................. 150 11,859 --------- TOTAL HOUSEHOLD PRODUCTS 21,518 --------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.1% Black Hills Corp. ......................... 100 3,901 --------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 3,901 --------- INDUSTRIAL CONGLOMERATES 0.3% Carlisle Cos., Inc. ....................... 160 4,621 Teleflex, Inc. ............................ 100 5,509 --------- TOTAL INDUSTRIAL CONGLOMERATES 10,130 --------- INSURANCE 3.3% American Financial Group, Inc. ............ 180 4,936 Arthur J. Gallagher & Co. ................. 240 5,897 Brown & Brown, Inc. ....................... 290 5,568 Commerce Group, Inc. ...................... 110 4,008 Everest Re Group, Ltd. .................... 160 14,456 Fidelity National Financial, Inc. -- Class A....................................... 550 8,795 First American Corp. ...................... 240 7,872 Hanover Insurance Group, Inc. ............. 130 5,834 HCC Insurance Holdings, Inc. .............. 300 7,404 Horace Mann Educators Corp. ............... 100 1,692 Mercury General Corp. ..................... 90 4,490 Old Republic International Corp. .......... 600 8,610 Protective Life Corp. ..................... 180 7,672 Stancorp Financial Group, Inc. ............ 130 6,661 Unitrin, Inc. ............................. 130 4,932 W.R. Berkley Corp. ........................ 400 10,276 --------- TOTAL INSURANCE 109,103 --------- INTERNET & CATALOG RETAIL 0.1% NetFlix, Inc.*............................. 120 3,838 --------- TOTAL INTERNET & CATALOG RETAIL 3,838 --------- INTERNET SOFTWARE & SERVICES 0.3% Digital River, Inc.*....................... 100 3,285 ValueClick, Inc.*.......................... 250 4,988 --------- TOTAL INTERNET SOFTWARE & SERVICES 8,273 --------- IT SERVICES 1.8% Acxiom Corp. .............................. 180 2,129 Alliance Data Systems Corp.*............... 200 11,482 Broadridge Financial Solutions, Inc. ...... 360 6,703 CSG Systems International, Inc.*........... 90 1,089 DST Systems, Inc.*......................... 130 7,779 Gartner, Inc.*............................. 170 3,896 Global Payments, Inc. ..................... 210 9,295 Metavante Technologies, Inc.*.............. 230 5,421 MoneyGram International, Inc. ............. 210 326 MPS Group, Inc.*........................... 250 2,683 NeuStar, Inc.*............................. 200 5,502 SRA International, Inc. -- Class A*........ 110 2,890 --------- TOTAL IT SERVICES 59,195 --------- LEISURE EQUIPMENT & PRODUCTS 0.1% Callaway Golf Co. ......................... 170 2,336 --------- TOTAL LEISURE EQUIPMENT & PRODUCTS 2,336 --------- LIFE SCIENCES TOOLS & SERVICES 1.8% Affymetrix, Inc.*.......................... 180 1,964 Charles River Laboratories International, Inc.*................................... 180 10,449 Covance, Inc.*............................. 170 14,244 Invitrogen Corp.*.......................... 120 11,229 Pharmaceutical Product Development, Inc. .. 270 11,183 Techne Corp.*.............................. 100 7,252 Varian, Inc.*.............................. 80 4,074 ----- --------- TOTAL LIFE SCIENCES TOOLS & SERVICES 60,395 ----- --------- MACHINERY 5.2% AGCO Corp.*................................ 240 14,431 Crane Co. ................................. 130 5,322 Donaldson Co., Inc. ....................... 180 7,837 Federal Signal Corp. ...................... 120 1,666 Flowserve Corp. ........................... 150 18,613 Graco, Inc. ............................... 160 6,626 Harsco Corp. .............................. 220 13,053 IDEX Corp. ................................ 210 7,705
See Notes to Financial Statements. SEMI-ANNUAL REPORT 20 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------- COMMON STOCKS (CONTINUED) Joy Global, Inc. .......................... 280 $20,790 Kennametal, Inc. .......................... 200 6,954 Lincoln Electric Holdings, Inc. ........... 110 8,393 Nordson Corp. ............................. 90 5,313 Oshkosh Truck Corp. ....................... 190 7,714 Pentair, Inc. ............................. 260 9,576 SPX Corp. ................................. 140 17,220 Timken Co. ................................ 250 9,037 Trinity Industries, Inc. .................. 210 6,384 Wabtec Corp. .............................. 130 5,574 --------- TOTAL MACHINERY 172,208 --------- MARINE 0.2% Alexander & Baldwin, Inc. ................. 110 5,525 --------- TOTAL MARINE 5,525 --------- MEDIA 0.8% Belo Corp. -- Class A...................... 230 2,323 Entercom Communications Corp. -- Class A... 70 742 Getty Images, Inc.*........................ 120 3,918 Harte-Hanks, Inc. ......................... 120 1,639 John Wiley & Sons, Inc. -- Class A......... 120 5,526 Lamar Advertising Co. -- Class A*.......... 200 7,908 Lee Enterprises, Inc. ..................... 100 773 Media General, Inc. -- Class A............. 60 881 Scholastic Corp.*.......................... 70 1,971 Valassis Communications, Inc.*............. 120 1,704 --------- TOTAL MEDIA 27,385 --------- METALS & MINING 2.0% Carpenter Technology Corp. ................ 130 6,666 Cleveland-Cliffs, Inc. .................... 120 19,248 Commercial Metals Co. ..................... 300 9,342 Reliance Steel & Aluminum Co. ............. 160 9,725 Steel Dynamics, Inc. ...................... 490 17,076 Worthington Industries, Inc. .............. 170 3,062 --------- TOTAL METALS & MINING 65,119 --------- MULTI-UTILITIES 2.9% Alliant Energy Corp. ...................... 290 10,924 Energy East Corp. ......................... 410 9,348 MDU Resources Group, Inc. ................. 470 13,569 NSTAR...................................... 280 9,019 OGE Energy Corp. .......................... 240 7,846 PNM Resources, Inc. ....................... 200 2,898 Puget Energy, Inc. ........................ 330 8,979 SCANA Corp. ............................... 300 11,829 Vectren Corp. ............................. 200 5,656 Wisconsin Energy Corp. .................... 300 14,238 --------- TOTAL MULTI-UTILITIES 94,306 --------- MULTILINE RETAIL 0.4% 99 Cents Only Stores*...................... 120 1,141 Dollar Tree Stores, Inc.*.................. 240 7,584 Saks, Inc.*................................ 370 4,814 --------- TOTAL MULTILINE RETAIL 13,539 --------- OFFICE ELECTRONICS 0.2% Zebra Technologies Corp. -- Class A*....... 170 6,248 --------- TOTAL OFFICE ELECTRONICS 6,248 --------- OIL, GAS & CONSUMABLE FUELS 5.9% Arch Coal, Inc. ........................... 370 21,223 Bill Barrett Corp.*........................ 90 4,629 Cimarex Energy Co. ........................ 210 13,083 Denbury Resources, Inc.*................... 630 19,253 Encore Acquisition Co.*.................... 140 6,388 Forest Oil Corp.*.......................... 230 13,554 Frontier Oil Corp. ........................ 270 6,710 Newfield Exploration Co.*.................. 340 20,658 Overseas Shipholding Group, Inc. .......... 70 5,268 Pioneer Natural Resources Co. ............. 310 17,896 Plains Exploration & Production Co.*....... 290 18,061 Quicksilver Resources, Inc.*............... 270 11,202 Southwestern Energy Co.*................... 880 37,233 --------- TOTAL OIL, GAS & CONSUMABLE FUELS 195,158 --------- PAPER & FOREST PRODUCTS 0.1% Louisiana-Pacific Corp. ................... 270 3,108 --------- TOTAL PAPER & FOREST PRODUCTS 3,108 --------- PERSONAL PRODUCTS 0.3% Alberto-Culver Co. ........................ 220 5,537 NBTY, Inc.*................................ 140 3,941 --------- TOTAL PERSONAL PRODUCTS 9,478 --------- PHARMACEUTICALS 0.9% Endo Pharmaceuticals Holdings, Inc.*....... 350 8,690 Medicis Pharmaceutical Corp. -- Class A.... 150 3,090 Par Pharmaceutical Cos., Inc.*............. 90 1,535 Perrigo Co. ............................... 200 8,198 Sepracor, Inc.*............................ 290 6,250 Valeant Pharmaceuticals International*..... 230 3,054 --------- TOTAL PHARMACEUTICALS 30,817 --------- REAL ESTATE INVESTMENT TRUSTS (REITS) 5.3% Alexandria Real Estate Equities, Inc. ..... 80 8,402 AMB Property Corp. ........................ 250 14,437 BRE Properties, Inc. ...................... 130 6,234 Camden Property Trust...................... 140 7,407 Cousins Properties, Inc. .................. 100 2,541 Duke Realty Corp. ......................... 380 9,280 Equity One, Inc. .......................... 100 2,470 Federal Realty Investment Trust............ 150 12,322 Health Care REIT, Inc. .................... 230 11,144 Highwoods Properties, Inc. ................ 150 5,256 Hospitality Properties Trust............... 240 7,711 Liberty Property Trust..................... 240 8,407 Macerich Co. .............................. 190 13,895 Mack-Cali Realty Corp. .................... 170 6,633 Nationwide Health Properties, Inc. ........ 250 9,005 Potlatch Corp. ............................ 100 4,481 Rayonier, Inc. ............................ 200 8,406 Realty Income Corp. ....................... 260 6,841 Regency Centers Corp. ..................... 180 12,883 UDR, Inc. ................................. 340 8,595 Weingarten Realty Investors................ 190 7,009 --------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 173,359 ---------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 21 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------------------- COMMON STOCKS (CONTINUED) REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% Jones Lang LaSalle, Inc. .................. 80 $6,209 --------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 6,209 --------- ROAD & RAIL 0.9% Avis Budget Group, Inc.*................... 270 3,586 Con-way, Inc. ............................. 120 5,550 J.B. Hunt Transport Services, Inc. ........ 220 7,473 Kansas City Southern*...................... 200 9,016 Werner Enterprises, Inc. .................. 110 2,140 YRC Worldwide, Inc.*....................... 150 2,437 --------- TOTAL ROAD & RAIL 30,202 --------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.1% Atmel Corp.*............................... 1,150 4,278 Cree, Inc.*................................ 230 5,980 Cypress Semiconductor Corp.*............... 390 10,967 Fairchild Semiconductor International, Inc.*................................... 320 4,173 Integrated Device Technology, Inc.*........ 490 5,238 International Rectifier Corp.*............. 190 4,324 Intersil Corp. -- Class A.................. 330 8,818 Lam Research Corp.*........................ 320 13,069 RF Micro Devices, Inc.*.................... 750 2,527 Semtech Corp.*............................. 170 2,761 Silicon Laboratories, Inc.*................ 140 4,728 TriQuint Semiconductor, Inc.*.............. 370 2,438 --------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 69,301 --------- SOFTWARE 2.5% ACI Worldwide, Inc.*....................... 90 1,989 Activision, Inc.*.......................... 760 20,558 Advent Software, Inc.*..................... 50 1,993 Cadence Design Systems, Inc.*.............. 720 8,014 Fair Isaac Corp. .......................... 130 3,220 Jack Henry & Associates, Inc. ............. 200 5,256 Macrovision Solutions Corp.*............... 140 2,209 McAfee, Inc.*.............................. 420 13,965 Mentor Graphics Corp.*..................... 230 2,316 Parametric Technology Corp.*............... 300 5,229 Sybase, Inc.*.............................. 200 5,884 Synopsys, Inc.*............................ 370 8,551 Wind River Systems, Inc.*.................. 200 1,648 --------- TOTAL SOFTWARE 80,832 --------- SPECIALTY RETAIL 3.6% Advance Auto Parts, Inc. .................. 240 8,323 Aeropostale, Inc.*......................... 170 5,404 American Eagle Outfitters, Inc. ........... 550 10,103 AnnTaylor Stores Corp.*.................... 160 4,048 Barnes & Noble, Inc. ...................... 120 3,874 Borders Group, Inc. ....................... 150 945 CarMax, Inc.*.............................. 560 11,620 Charming Shoppes, Inc.*.................... 300 1,548 Chico's FAS, Inc.*......................... 450 3,182 Coldwater Creek, Inc.*..................... 150 801 Collective Brands, Inc.*................... 170 2,103 Dick's Sporting Goods, Inc.*............... 220 6,292 Foot Locker, Inc. ......................... 400 5,060 Guess?, Inc. .............................. 140 5,359 O'Reilly Automotive, Inc.*................. 300 8,661 Pacific Sunwear of California, Inc.*....... 180 2,414 Petsmart, Inc. ............................ 330 7,385 Rent-A-Center, Inc.*....................... 170 3,660 Ross Stores, Inc. ......................... 350 11,721 Urban Outfitters, Inc.*.................... 290 9,933 Williams-Sonoma, Inc. ..................... 230 6,072 --------- TOTAL SPECIALTY RETAIL 118,508 --------- TEXTILES, APPAREL & LUXURY GOODS 0.7% Hanesbrands, Inc.*......................... 250 8,755 Phillips-Van Heusen Corp. ................. 130 5,487 Timberland Co. -- Class A*................. 130 1,898 Warnaco Group, Inc.*....................... 120 5,537 --------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 21,677 --------- THRIFTS & MORTGAGE FINANCE 1.0% Astoria Financial Corp. ................... 210 4,977 First Niagara Financial Group, Inc. ....... 270 3,896 IndyMac Bancorp, Inc. ..................... 210 683 New York Community Bancorp, Inc. .......... 840 15,683 PMI Group, Inc. ........................... 210 1,182 Radian Group, Inc. ........................ 210 1,134 Washington Federal, Inc. .................. 230 5,476 --------- TOTAL THRIFTS & MORTGAGE FINANCE 33,031 --------- TOBACCO 0.1% Universal Corp. ........................... 70 4,493 --------- TOTAL TOBACCO 4,493 --------- TRADING COMPANIES & DISTRIBUTORS 0.9% Fastenal Co. .............................. 320 15,619 GATX Corp. ................................ 120 5,280 MSC Industrial Direct Co. ................. 120 5,851 United Rentals, Inc.*...................... 200 3,768 --------- TOTAL TRADING COMPANIES & DISTRIBUTORS 30,518 --------- WATER UTILITIES 0.2% Aqua America, Inc. ........................ 340 6,266 --------- TOTAL WATER UTILITIES 6,266 --------- WIRELESS TELECOMMUNICATION SERVICES 0.3% Telephone & Data Systems, Inc. ............ 270 10,341 --------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 10,341 --------- TOTAL COMMON STOCKS (Cost $2,867,790) 2,824,167 ---------
FACE AMOUNT ------------------------------------------------------------------- REPURCHASE AGREEMENTS 12.6% State Street Bank & Trust Co., 1.850%, dated 04/30/08, to be repurchased at $412,021 on 05/01/08 collateralized by $420,000 FHLB at 5.700% due 04/03/28 with a value of $423,675................ 412,000 $412,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $412,000) 412,000 ----------- TOTAL INVESTMENTS 98.6% (Cost $3,279,790) 3,236,167 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--1.4% 43,309 ----------- NET ASSETS--100.0% $3,279,476 -------------------------------------------------------------------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 22 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
UNREALIZED CONTRACTS GAIN --------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2008 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $2,436,290)................... 29 $169,652 ---------------------------------------------------------------------
UNREALIZED UNITS GAIN --------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED May 2008 S&P MidCap 400 Index Swap, Terminating 05/20/08** (Notional Market Value $1,300,353)....................... 1,550 $60,059 ---------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P MidCap 400 Index +/- financing at a variable rate. FHLB--Federal Home Loan Bank See Notes to Financial Statements. SEMI-ANNUAL REPORT 23 RYDEX INVERSE 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE --------------------------------------------------------------------- REPURCHASE AGREEMENTS 86.3% State Street Bank & Trust Co., 1.850%, dated 04/30/08 to be repurchased at $6,727,346 on 05/01/08 collateralized by $6,805,000 FHLB at 5.700% due 04/03/28 with a value of $6,864,544.............. 6,727,000 $6,727,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $6,727,000) 6,727,000 ---------- TOTAL INVESTMENTS 86.3% (Cost $6,727,000) 6,727,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--13.7% 1,071,073 ---------- NET ASSETS--100.0% $7,798,073 ---------------------------------------------------------------------
UNREALIZED CONTRACTS LOSS --------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2008 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Market Value of Contracts $1,008,120)................... 12 $(39,508) --------- Units --------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT May 2008 S&P MidCap 400 Index Swap, Terminating 05/20/08* (Notional Market Value $14,613,390)...................... 17,421 $(294,916) ---------------------------------------------------------------------
* Price return based on S&P MidCap 400 Index +/- financing at a variable rate. FHLB --Federal Home Loan Bank See Notes to Financial Statements. SEMI-ANNUAL REPORT 24 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS 85.8% AEROSPACE & DEFENSE 1.4% AAR Corp.*................................. 320 $7,488 Aerovironment, Inc.*....................... 60 1,435 American Science & Engineering, Inc. ...... 80 3,898 Applied Energetics, Inc.*.................. 270 578 Argon ST, Inc.*............................ 110 2,025 Ceradyne, Inc.*............................ 230 8,961 Cubic Corp. ............................... 130 3,524 Curtiss-Wright Corp. ...................... 380 18,046 DynCorp International, Inc.*............... 220 3,949 Esterline Technologies Corp.*.............. 250 13,915 GenCorp, Inc.*............................. 480 4,114 Heico Corp. ............................... 220 11,332 Hexcel Corp.*.............................. 810 18,128 Innovative Solutions & Support, Inc.*...... 110 1,018 Ladish Co., Inc.*.......................... 120 3,607 Moog, Inc.*................................ 330 14,226 MTC Technologies, Inc.*.................... 80 1,909 Orbital Sciences Corp.*.................... 510 13,724 Stanley, Inc.*............................. 70 1,766 Taser International, Inc.*................. 530 3,954 Teledyne Technologies, Inc.*............... 300 17,619 TransDigm Group, Inc.*..................... 90 3,417 Triumph Group, Inc. ....................... 140 8,242 ----------- TOTAL AEROSPACE & DEFENSE 166,875 ----------- AIR FREIGHT & LOGISTICS 0.3% ABX Air, Inc.*............................. 540 1,447 Atlas Air Worldwide Holdings, Inc.*........ 110 6,675 Dynamex, Inc.*............................. 90 2,262 Forward Air Corp. ......................... 260 8,863 HUB Group, Inc. -- Class A*................ 330 10,788 Pacer International, Inc. ................. 300 5,568 Park-Ohio Holdings Corp.*.................. 70 1,167 ----------- TOTAL AIR FREIGHT & LOGISTICS 36,770 ----------- AIRLINES 0.3% Airtran Holdings, Inc.*.................... 790 2,694 Alaska Air Group, Inc.*.................... 330 7,088 Allegiant Travel Co.*...................... 50 1,362 ExpressJet Holdings, Inc.*................. 470 1,424 JetBlue Airways Corp.*..................... 1,540 7,762 Pinnacle Airlines Corp.*................... 160 1,331 Republic Airways Holdings, Inc.*........... 280 4,721 SkyWest, Inc. ............................. 520 9,896 ----------- TOTAL AIRLINES 36,278 ----------- AUTO COMPONENTS 0.9% Aftermarket Technology Corp.*.............. 190 4,353 American Axle & Manufacturing Holdings, Inc. ................................... 390 7,855 Amerigon, Inc.*............................ 190 2,789 ArvinMeritor, Inc. ........................ 620 9,263 Cooper Tire & Rubber Co. .................. 530 6,964 Drew Industries, Inc.*..................... 160 3,903 Exide Technologies*........................ 640 9,338 Hayes Lemmerz International, Inc.*......... 860 2,580 Lear Corp.*................................ 660 18,856 Modine Manufacturing Co. .................. 280 4,920 Noble International, Ltd. ................. 100 625 Raser Technologies, Inc.*.................. 270 2,932 Sauer-Danfoss, Inc. ....................... 90 2,598 Spartan Motors, Inc. ...................... 280 2,629 Standard Motor Products, Inc. ............. 140 851 Stoneridge, Inc.*.......................... 120 1,748 Superior Industries International, Inc. ... 200 4,062 Tenneco, Inc.*............................. 400 10,232 Visteon Corp.*............................. 1,120 4,861 ----------- TOTAL AUTO COMPONENTS 101,359 ----------- AUTOMOBILES 0.1% Fleetwood Enterprises, Inc.*............... 550 1,898 Monaco Coach Corp. ........................ 260 1,646 Winnebago Industries, Inc. ................ 250 4,022 ----------- TOTAL AUTOMOBILES 7,566 ----------- BEVERAGES 0.2% Boston Beer Co., Inc. -- Class A*.......... 80 3,544 Central European Distribution Corp.*....... 300 18,276 Coca-Cola Bottling Co. Consolidated........ 50 2,861 Jones Soda Co.*............................ 220 713 MGP Ingredients, Inc. ..................... 90 659 National Beverage Corp. ................... 90 725 ----------- TOTAL BEVERAGES 26,778 ----------- BIOTECHNOLOGY 3.0% Acadia Pharmaceuticals, Inc.*.............. 270 2,160 Acorda Therapeutics, Inc.*................. 250 5,262 Affymax, Inc.*............................. 40 618 Alexion Pharmaceuticals, Inc.*............. 310 21,818 Alkermes, Inc.*............................ 870 10,814 Allos Therapeutics, Inc.*.................. 360 2,030 Alnylam Pharmaceuticals, Inc.*............. 300 7,524 Altus Pharmaceuticals, Inc.*............... 180 742 Amicus Therapeutics, Inc.*................. 40 422 Applera Corp. -- Celera Group*............. 680 9,098 Arena Pharmaceuticals, Inc.*............... 620 3,466 Ariad Pharmaceuticals, Inc.*............... 590 1,746 ArQule, Inc.*.............................. 340 1,309 Array BioPharma, Inc.*..................... 400 2,488 BioMarin Pharmaceutical, Inc.*............. 830 30,262 Bionovo, Inc.*............................. 450 508 Cell Genesys, Inc.*........................ 670 2,573 Cepheid, Inc.*............................. 470 9,198 Cubist Pharmaceuticals, Inc.*.............. 480 9,293 CV Therapeutics, Inc.*..................... 510 4,666 Cytokinetics, Inc.*........................ 300 1,035 CytRx Corp.*............................... 750 637 Dendreon Corp.*............................ 720 3,794 Emergent Biosolutions, Inc.*............... 50 471 Encysive Pharmaceuticals, Inc.*............ 590 1,381 Enzon Pharmaceuticals, Inc.*............... 380 3,314 Genomic Health, Inc.*...................... 120 2,582 GenVec, Inc.*.............................. 570 1,146 Geron Corp.*............................... 630 2,974 GTx, Inc.*................................. 150 2,557 Halozyme Therapeutics, Inc.*............... 550 2,717 Human Genome Sciences, Inc.*............... 1,160 7,598 Idenix Pharmaceuticals, Inc.*.............. 210 1,361 Immunomedics, Inc.*........................ 500 1,215 Incyte Corp.*.............................. 720 7,812 Indevus Pharmaceuticals, Inc.*............. 530 2,549 InterMune, Inc.*........................... 260 4,121 Isis Pharmaceuticals, Inc.*................ 800 9,424
See Notes to Financial Statements. SEMI-ANNUAL REPORT 25 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Keryx Biopharmaceuticals, Inc.*............ 380 $198 Kosan Biosciences, Inc.*................... 370 614 LifeCell Corp.*............................ 290 14,726 Ligand Pharmaceuticals, Inc. -- Class B*... 730 2,956 MannKind Corp.*............................ 450 1,170 Martek Biosciences Corp.*.................. 280 9,873 Maxygen, Inc.*............................. 210 1,245 Medarex, Inc.*............................. 1,080 7,744 Metabolix, Inc.*........................... 120 1,321 Molecular Insight Pharmaceuticals, Inc.*... 40 313 Momenta Pharmaceuticals, Inc.*............. 200 2,796 Myriad Genetics, Inc.*..................... 370 15,370 Nabi Biopharmaceuticals*................... 450 1,813 Nanosphere, Inc.*.......................... 60 400 Neurocrine Biosciences, Inc.*.............. 330 1,792 Neurogen Corp.*............................ 270 265 Novacea, Inc.*............................. 60 175 Omrix Biopharmaceuticals, Inc.*............ 120 1,782 Onyx Pharmaceuticals, Inc.*................ 470 16,525 Orexigen Therapeutics, Inc.*............... 80 850 OSI Pharmaceuticals, Inc.*................. 500 17,325 Osiris Therapeutics, Inc.*................. 130 1,504 Poniard Pharmaceuticals, Inc.*............. 200 734 Progenics Pharmaceuticals, Inc.*........... 220 2,963 Protalix BioTherapeutics, Inc.*............ 20 55 Regeneron Pharmaceuticals, Inc.*........... 550 10,791 Rigel Pharmaceuticals, Inc.*............... 310 6,975 Savient Pharmaceuticals, Inc.*............. 460 10,046 Seattle Genetics, Inc.*.................... 500 5,080 Senomyx, Inc.*............................. 260 1,560 Synta Pharmaceuticals Corp.*............... 40 268 Telik, Inc.*............................... 450 949 Tercica, Inc.*............................. 280 1,392 Trubion Pharmaceuticals, Inc.*............. 70 494 United Therapeutics Corp.*................. 190 16,055 Vanda Pharmaceuticals, Inc.*............... 230 812 XOMA, Ltd.*................................ 1,130 2,735 Zymogenetics, Inc.*........................ 340 3,026 ----------- TOTAL BIOTECHNOLOGY 347,377 ----------- BUILDING PRODUCTS 0.4% AAON, Inc. ................................ 120 2,170 American Woodmark Corp. ................... 90 1,698 Ameron International Corp. ................ 80 7,904 Apogee Enterprises, Inc. .................. 250 5,577 Builders FirstSource, Inc.*................ 130 857 China Architectural Engineering, Inc.*..... 40 218 Gibraltar Industries, Inc. ................ 220 2,299 Griffon Corp.*............................. 260 2,431 Insteel Industries, Inc. .................. 160 1,994 NCI Building Systems, Inc.*................ 170 4,104 PGT, Inc.*................................. 90 287 Quanex Building Products Corp.*............ 320 5,440 Simpson Manufacturing Co., Inc. ........... 320 8,445 Trex Co., Inc.*............................ 100 910 Universal Forest Products, Inc. ........... 140 4,859 ----------- TOTAL BUILDING PRODUCTS 49,193 ----------- CAPITAL MARKETS 1.5% Apollo Investment Corp. ................... 1,031 16,674 Ares Capital Corp. ........................ 801 9,014 BGC Partners, Inc. -- Class A*............. 170 1,639 BlackRock Kelso Capital Corp. ............. 91 1,114 Calamos Asset Management, Inc. ............ 170 3,051 Capital Southwest Corp. ................... 30 3,568 Cohen & Steers, Inc. ...................... 150 4,188 Cowen Group, Inc.*......................... 130 865 Epoch Holding Corp. ....................... 70 832 Evercore Partners, Inc. -- Class A......... 80 1,349 FBR Capital Markets Corp.*................. 270 1,755 FCStone Group, Inc.*....................... 80 3,314 GAMCO Investors, Inc. ..................... 50 2,301 GFI Group, Inc. ........................... 550 6,462 Gladstone Capital Corp. ................... 180 3,380 Greenhill & Co., Inc. ..................... 150 9,757 Hercules Technology Growth Capital, Inc. .. 280 2,842 HFF, Inc. -- Class A*...................... 140 881 Kayne Anderson Energy Development Co. ..... 90 1,996 KBW, Inc.*................................. 250 5,935 Knight Capital Group, Inc.*................ 840 15,716 Kohlberg Capital Corp. .................... 145 1,455 LaBranche & Co., Inc.*..................... 460 2,939 Ladenburg Thalmann Financial Services, Inc.*................................... 840 1,638 MCG Capital Corp. ......................... 620 4,749 MVC Capital, Inc. ......................... 210 3,268 NGP Capital Resources Co. ................. 150 2,420 optionsXpress Holdings, Inc. .............. 380 8,159 Patriot Capital Funding, Inc. ............. 180 1,832 PennantPark Investment Corp. .............. 170 1,260 Penson Worldwide, Inc.*.................... 110 1,197 Piper Jaffray Cos., Inc.*.................. 150 5,589 Prospect Capital Corp. .................... 200 2,968 Pzena Investment Management, Inc. ......... 50 608 Riskmetrics Group, Inc.*................... 180 3,177 Sanders Morris Harris Group, Inc. ......... 160 1,317 Stifel Financial Corp.*.................... 130 6,145 SWS Group, Inc. ........................... 190 2,493 Thomas Weisel Partners Group, Inc.*........ 190 1,252 TICC Capital Corp. ........................ 181 1,316 TradeStation Group, Inc.*.................. 250 2,333 U.S. Global Investors, Inc. -- Class A..... 100 1,297 W.P. Stewart & Co., Ltd. .................. 190 287 Waddell & Reed Financial, Inc. -- Class A.. 720 24,379 ----------- TOTAL CAPITAL MARKETS 178,711 ----------- CHEMICALS 2.5% A. Schulman, Inc. ......................... 230 4,876 American Vanguard Corp. ................... 160 2,768 Arch Chemicals, Inc. ...................... 210 7,155 Balchem Corp. ............................. 150 3,429 Calgon Carbon Corp.*....................... 350 4,987 CF Industries Holdings, Inc. .............. 480 64,176 Ferro Corp. ............................... 370 6,505 Flotek Industries, Inc.*................... 200 3,744 GenTek, Inc.*.............................. 70 2,174 Georgia Gulf Corp. ........................ 300 1,803 H.B. Fuller Co. ........................... 500 11,540 Hercules, Inc. ............................ 1,000 18,800 Innophos Holdings, Inc. ................... 180 3,224 Innospec, Inc. ............................ 210 4,282 Koppers Holdings, Inc. .................... 150 7,266 Kronos Worldwide, Inc. .................... 20 585 Landec Corp.*.............................. 190 1,541 LSB Industries, Inc.*...................... 130 1,990
See Notes to Financial Statements. SEMI-ANNUAL REPORT 26 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Minerals Technologies, Inc. ............... 160 $10,838 NewMarket Corp. ........................... 120 7,792 NL Industries, Inc. ....................... 60 665 Olin Corp. ................................ 640 12,909 OM Group, Inc.*............................ 260 14,237 PolyOne Corp.*............................. 800 5,904 Rockwood Holdings, Inc.*................... 300 11,073 Sensient Technologies Corp. ............... 400 11,908 ShengdaTech, Inc.*......................... 250 1,930 Spartech Corp. ............................ 260 2,324 Stepan Co. ................................ 50 1,967 Terra Industries, Inc.*.................... 800 30,288 Tronox, Inc. .............................. 360 1,076 Valhi, Inc. ............................... 60 1,597 WR Grace & Co.*............................ 600 15,216 Zep, Inc. ................................. 190 2,816 Zoltek Cos., Inc.*......................... 210 5,601 ----------- TOTAL CHEMICALS 288,986 ----------- COMMERCIAL BANKS 4.7% 1st Source Corp. .......................... 120 2,378 AMCORE Financial, Inc. .................... 190 2,364 AmericanWest Bancorp....................... 150 547 Ameris Bancorp............................. 120 1,798 Bancfirst Corp. ........................... 70 3,061 Banco Latinoamericano de Exportaciones, S.A. -- Class E......................... 230 4,324 Bancorp, Inc.*............................. 100 1,106 Bank of the Ozarks, Inc. .................. 110 2,744 Banner Corp. .............................. 130 2,808 Boston Private Financial Holdings, Inc. ... 320 2,976 Capital City Bank Group, Inc. ............. 100 2,625 Capital Corp. of the West.................. 80 548 Capitol Bancorp, Ltd. ..................... 120 2,063 Cascade Bancorp............................ 190 1,733 Cathay General Bancorp..................... 440 7,502 Centennial Bank Holdings, Inc.*............ 440 2,754 Center Financial Corp. .................... 90 937 Central Pacific Financial Corp. ........... 250 4,590 Chemical Financial Corp. .................. 210 5,099 Citizens Republic Bancorp, Inc. ........... 650 5,362 City Bank.................................. 120 2,174 City Holding Co. .......................... 140 5,821 CoBiz, Inc. ............................... 160 1,778 Columbia Banking System, Inc. ............. 150 4,062 Community Bancorp*......................... 90 999 Community Bank System, Inc. ............... 260 6,627 Community Trust Bancorp, Inc. ............. 130 3,908 CVB Financial Corp. ....................... 570 6,544 Enterprise Financial Services Corp. ....... 90 1,930 F.N.B. Corp. .............................. 740 11,440 First BanCorp. ............................ 800 8,232 First Bancorp.............................. 100 1,882 First Charter Corp. ....................... 300 9,114 First Commonwealth Financial Corp. ........ 640 7,968 First Community Bancorp.................... 210 4,513 First Community Bancshares, Inc. .......... 90 3,008 First Financial Bancorp.................... 290 3,805 First Financial Bankshares, Inc. .......... 180 8,098 First Financial Corp. ..................... 110 3,498 First Merchants Corp. ..................... 160 4,091 First Midwest Bancorp, Inc. ............... 430 10,978 First Regional Bancorp*.................... 70 1,039 First South Bancorp, Inc. ................. 70 1,564 First State Bancorp........................ 180 1,674 FirstMerit Corp. .......................... 690 14,159 Frontier Financial Corp. .................. 360 5,760 Glacier Bancorp, Inc. ..................... 450 9,261 Great Southern Bancorp, Inc. .............. 90 1,357 Greene Bankshares, Inc. ................... 100 2,003 Hancock Holding Co. ....................... 230 9,492 Hanmi Financial Corp. ..................... 330 2,307 Harleysville National Corp. ............... 260 3,760 Heartland Financial USA, Inc. ............. 110 2,475 Heritage Commerce Corp. ................... 120 2,122 Home Bancshares, Inc. ..................... 110 2,555 Horizon Financial Corp. ................... 110 1,351 IBERIABANK Corp. .......................... 100 4,820 Independent Bank Corp. .................... 120 3,508 Independent Bank Corp. .................... 190 1,516 Integra Bank Corp. ........................ 180 2,630 International Bancshares Corp. ............ 440 10,996 Investors Bancorp, Inc.*................... 440 6,455 Irwin Financial Corp. ..................... 160 934 Lakeland Bancorp, Inc. .................... 170 2,633 Lakeland Financial Corp. .................. 100 2,329 Macatawa Bank Corp. ....................... 130 1,478 MainSource Financial Group, Inc. .......... 160 2,370 MB Financial, Inc. ........................ 300 8,610 Midwest Banc Holdings, Inc. ............... 190 1,953 Nara Bancorp, Inc. ........................ 190 2,495 National Penn Bancshares, Inc. ............ 670 11,182 NBT Bancorp, Inc. ......................... 280 6,378 Northfield Bancorp, Inc.*.................. 170 1,773 Old National Bancorp....................... 570 9,753 Old Second Bancorp, Inc. .................. 120 2,944 Oriental Financial Group................... 180 3,384 Pacific Capital Bancorp.................... 410 8,356 Park National Corp. ....................... 100 7,601 Peoples Bancorp, Inc. ..................... 90 2,184 Pinnacle Financial Partners, Inc.*......... 190 5,149 Preferred Bank............................. 80 937 PrivateBancorp, Inc. ...................... 160 5,438 Prosperity Bancshares, Inc. ............... 310 9,601 Provident Bankshares Corp. ................ 280 3,587 Renasant Corp. ............................ 180 4,171 Republic Bancorp, Inc. .................... 80 1,850 Royal Bancshares of Pennsylvania, Inc. -- Class A......................... 50 543 S&T Bancorp, Inc. ......................... 210 7,155 S.Y. Bancorp, Inc. ........................ 100 2,463 Sandy Spring Bancorp, Inc. ................ 140 3,570 Santander Bancorp.......................... 40 452 SCBT Financial Corp. ...................... 90 3,057 Seacoast Banking Corp. of Florida.......... 130 1,366 Security Bank Corp. ....................... 180 1,382 Sierra Bancorp............................. 70 1,513 Signature Bank*............................ 260 6,859 Simmons First National Corp. .............. 120 3,841 South Financial Group, Inc. ............... 640 3,866 Southside Bancshares, Inc. ................ 101 2,425 Southwest Bancorp, Inc. ................... 120 2,112 Sterling Bancorp........................... 160 2,626 Sterling Bancshares, Inc. ................. 640 6,650 Sterling Financial Corp. .................. 440 5,372
See Notes to Financial Statements. SEMI-ANNUAL REPORT 27 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Suffolk Bancorp............................ 90 $2,914 Sun Bancorp, Inc.*......................... 140 1,623 Superior Bancorp*.......................... 90 1,597 Susquehanna Bancshares, Inc. .............. 730 14,520 SVB Financial Group*....................... 280 13,625 Taylor Capital Group, Inc. ................ 50 746 Texas Capital Bancshares, Inc.*............ 200 3,690 Tompkins Financial Corp. .................. 60 2,902 Trico Bancshares........................... 120 2,041 Trustmark Corp. ........................... 420 9,148 UCBH Holdings, Inc. ....................... 860 6,261 UMB Financial Corp. ....................... 270 13,403 Umpqua Holdings Corp. ..................... 530 7,817 Union Bankshares Corp. .................... 110 2,108 United Bankshares, Inc. ................... 330 9,600 United Community Banks, Inc. .............. 360 4,943 United Security Bancshares Co. ............ 70 998 Univest Corp. of Pennsylvania.............. 110 2,818 Virginia Commerce Bancorp, Inc.*........... 160 1,128 W Holding Co., Inc. ....................... 980 1,029 Washington Trust Bancorp, Inc. ............ 100 2,418 WesBanco, Inc. ............................ 220 4,732 West Coast Bancorp......................... 140 1,807 Westamerica Bancorp........................ 260 15,194 Western Alliance Bancorp*.................. 140 1,788 Wilshire Bancorp, Inc. .................... 150 1,236 Wintrust Financial Corp. .................. 210 6,661 ----------- TOTAL COMMERCIAL BANKS 557,682 ----------- COMMERCIAL SERVICES & SUPPLIES 3.7% ABM Industries, Inc. ...................... 370 7,748 ACCO Brands Corp.*......................... 460 6,403 Administaff, Inc. ......................... 190 4,976 Advisory Board Co.*........................ 160 7,459 American Ecology Corp. .................... 140 3,721 American Reprographics Co.*................ 260 4,126 AMREP Corp. ............................... 10 522 Arrowhead Research Corp.*.................. 290 777 Barrett Business Services, Inc. ........... 60 720 Bowne & Co., Inc. ......................... 240 3,994 Casella Waste Systems, Inc. -- Class A*.... 200 2,132 CBIZ, Inc.*................................ 410 3,637 CDI Corp. ................................. 110 2,992 Cenveo, Inc.*.............................. 460 4,724 Clean Harbors, Inc.*....................... 140 9,236 Comfort Systems USA, Inc. ................. 350 4,760 CompX International, Inc. ................. 10 63 COMSYS IT Partners, Inc.*.................. 150 1,227 Consolidated Graphics, Inc.*............... 70 4,072 Cornell Cos., Inc.*........................ 90 2,045 CoStar Group, Inc.*........................ 170 8,151 Courier Corp. ............................. 90 2,119 CRA International, Inc.*................... 90 3,103 Deluxe Corp. .............................. 450 9,567 Diamond Management & Technology Consultants, Inc. ...................... 230 1,415 Duff & Phelps Corp.*....................... 80 1,446 EnergySolutions, Inc. ..................... 260 5,681 EnerNOC, Inc.*............................. 40 617 Ennis, Inc. ............................... 220 3,727 Exponent, Inc.*............................ 130 4,386 First Advantage Corp.*..................... 60 1,231 FTI Consulting, Inc.*...................... 410 26,240 Fuel Tech, Inc.*........................... 150 3,855 G&K Services, Inc. ........................ 170 5,360 Geo Group, Inc.*........................... 430 11,373 GeoEye, Inc.*.............................. 150 3,454 Healthcare Services Group, Inc. ........... 360 5,494 Heidrick & Struggles International, Inc. .. 150 4,489 Herman Miller, Inc. ....................... 490 11,432 Hudson Highland Group, Inc.*............... 220 1,951 Huron Consulting Group, Inc.*.............. 160 6,698 ICT Group, Inc.*........................... 70 765 IHS, Inc.*................................. 290 19,154 IKON Office Solutions, Inc. ............... 690 7,555 Innerworkings, Inc.*....................... 200 2,688 Interface, Inc. ........................... 470 6,035 Kelly Services, Inc. ...................... 200 4,450 Kenexa Corp.*.............................. 200 3,498 Kforce, Inc.*.............................. 280 2,304 Kimball International, Inc. ............... 230 2,362 Knoll, Inc. ............................... 430 5,599 Korn/Ferry International*.................. 410 7,651 Layne Christensen Co.*..................... 140 5,974 LECG Corp.*................................ 220 2,286 M&F Worldwide Corp.*....................... 100 3,440 McGrath Rentcorp........................... 220 5,683 Mine Safety Appliances Co. ................ 240 8,921 Mobile Mini, Inc.*......................... 310 6,587 Multi-Color Corp. ......................... 70 1,436 Navigant Consulting, Inc.*................. 410 8,249 Odyssey Marine Exploration, Inc.*.......... 350 1,691 On Assignment, Inc.*....................... 300 2,109 PeopleSupport, Inc.*....................... 190 1,879 PHH Corp.*................................. 460 9,030 Pike Electric Corp.*....................... 150 2,406 Protection One, Inc.*...................... 60 618 Resources Connection, Inc. ................ 390 7,882 Rollins, Inc. ............................. 370 5,894 RSC Holdings, Inc.*........................ 180 1,663 Schawk, Inc. .............................. 130 2,084 School Specialty, Inc.*.................... 170 5,005 Spherion Corp.*............................ 490 2,421 Standard Parking Corp.*.................... 80 1,714 Standard Register Co. ..................... 150 1,422 Team, Inc.*................................ 140 4,162 TeleTech Holdings, Inc.*................... 360 8,255 Tetra Tech, Inc.*.......................... 500 10,565 TrueBlue, Inc.*............................ 380 4,837 United Stationers, Inc.*................... 200 8,818 Viad Corp. ................................ 180 5,663 Volt Information Sciences, Inc.*........... 110 1,467 Waste Connections, Inc.*................... 590 18,921 Waste Industries USA, Inc. ................ 40 1,510 Waste Services, Inc.*...................... 170 1,328 Watson Wyatt Worldwide, Inc. .............. 370 21,689 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 434,793 ----------- COMMUNICATIONS EQUIPMENT 1.8% 3Com Corp.*................................ 3,350 8,006 Acme Packet, Inc.*......................... 190 1,739 Adtran, Inc. .............................. 470 11,120 Airvana, Inc.*............................. 70 452 Anaren, Inc.*.............................. 130 1,751
See Notes to Financial Statements. SEMI-ANNUAL REPORT 28 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Arris Group, Inc.*......................... 1,150 $9,315 Aruba Networks, Inc.*...................... 70 417 Avanex Corp.*.............................. 1,680 1,445 Avocent Corp.*............................. 390 7,609 Bel Fuse, Inc. ............................ 100 2,607 BigBand Networks, Inc.*.................... 110 810 Black Box Corp. ........................... 150 4,459 Blue Coat Systems, Inc.*................... 280 5,911 Comtech Group, Inc.*....................... 170 2,213 Comtech Telecommunications Corp.*.......... 200 7,746 Digi International, Inc.*.................. 220 1,813 Ditech Networks, Inc.*..................... 220 627 Dycom Industries, Inc.*.................... 350 5,033 EMS Technologies, Inc.*.................... 130 3,362 Extreme Networks*.......................... 1,020 3,091 Finisar Corp.*............................. 2,310 3,118 Foundry Networks, Inc.*.................... 1,260 16,040 Harmonic, Inc.*............................ 800 6,616 Harris Stratex Networks, Inc.*............. 220 2,088 Hughes Communications, Inc.*............... 60 3,240 Infinera Corp.*............................ 150 1,899 InterDigital, Inc.*........................ 400 8,108 Ixia*...................................... 380 2,694 Loral Space & Communications, Ltd.*........ 100 2,159 MasTec, Inc.*.............................. 370 3,030 MRV Communications, Inc.*.................. 1,360 2,135 NETGEAR, Inc.*............................. 300 4,863 Network Equipment Technologies, Inc.*...... 250 1,625 Neutral Tandem, Inc.*...................... 60 1,154 Nextwave Wireless, Inc.*................... 260 1,661 Oplink Communications, Inc.*............... 180 1,730 OpNext, Inc.*.............................. 160 944 Optium Corp.*.............................. 110 855 Orbcomm, Inc.*............................. 230 1,355 Packeteer, Inc.*........................... 310 2,186 Plantronics, Inc. ......................... 410 10,213 Polycom, Inc.*............................. 790 17,696 Powerwave Technologies, Inc.*.............. 1,120 3,058 SeaChange International, Inc.*............. 250 1,790 ShoreTel, Inc.*............................ 80 370 Sonus Networks, Inc.*...................... 2,300 9,223 Starent Networks Corp.*.................... 110 1,740 Sycamore Networks, Inc.*................... 1,590 5,120 Symmetricom, Inc.*......................... 400 1,716 Tekelec*................................... 520 7,654 Utstarcom, Inc.*........................... 910 2,958 ViaSat, Inc.*.............................. 210 4,641 ----------- TOTAL COMMUNICATIONS EQUIPMENT 213,205 ----------- COMPUTERS & PERIPHERALS 0.8% 3PAR, Inc.*................................ 60 482 Adaptec, Inc.*............................. 1,020 2,846 Avid Technology, Inc.*..................... 330 6,887 Compellent Technologies, Inc.*............. 60 765 Cray, Inc.*................................ 280 1,744 Data Domain, Inc.*......................... 80 1,740 Electronics for Imaging, Inc.*............. 460 6,633 Emulex Corp.*.............................. 740 9,687 Hutchinson Technology, Inc.*............... 220 3,111 Hypercom Corp.*............................ 460 1,964 Imation Corp. ............................. 280 6,563 Immersion Corp.*........................... 260 2,935 Intermec, Inc.*............................ 520 10,983 Intevac, Inc.*............................. 180 2,390 Isilon Systems, Inc.*...................... 70 339 Netezza Corp.*............................. 90 954 Novatel Wireless, Inc.*.................... 280 2,498 Palm, Inc. ................................ 890 5,126 Quantum Corp.*............................. 1,690 2,958 Rackable Systems, Inc.*.................... 250 2,750 Rimage Corp.*.............................. 90 1,608 Silicon Graphics, Inc.*.................... 60 648 STEC, Inc.*................................ 280 2,570 Stratasys, Inc.*........................... 180 3,499 Super Micro Computer, Inc.*................ 80 597 Synaptics, Inc.*........................... 210 7,128 ----------- TOTAL COMPUTERS & PERIPHERALS 89,405 ----------- CONSTRUCTION & ENGINEERING 0.5% Aecom Technology Corp.*.................... 370 10,160 EMCOR Group, Inc.*......................... 550 13,783 Granite Construction, Inc. ................ 290 9,947 Great Lakes Dredge & Dock Corp. ........... 100 598 Insituform Technologies, Inc. -- Class A*.. 230 3,891 Integrated Electrical Services, Inc.*...... 120 2,008 Michael Baker Corp.*....................... 60 1,264 Northwest Pipe Co.*........................ 80 3,402 Perini Corp.*.............................. 230 8,321 ----------- TOTAL CONSTRUCTION & ENGINEERING 53,374 ----------- CONSTRUCTION MATERIALS 0.2% Headwaters, Inc.*.......................... 340 3,886 Texas Industries, Inc. .................... 240 18,579 U.S. Concrete, Inc.*....................... 290 957 ----------- TOTAL CONSTRUCTION MATERIALS 23,422 ----------- CONSUMER FINANCE 0.3% Advance America, Cash Advance Centers, Inc. ................................... 530 4,669 Advanta Corp. ............................. 320 2,810 Cardtronics, Inc.*......................... 100 829 Cash America International, Inc. .......... 260 10,605 CompuCredit Corp.*......................... 160 1,293 Credit Acceptance Corp.*................... 40 770 Dollar Financial Corp.*.................... 140 3,021 Ezcorp, Inc.*.............................. 320 3,885 First Cash Financial Services, Inc.*....... 210 3,116 Nelnet, Inc. -- Class A.................... 150 1,919 QC Holdings, Inc. ......................... 70 614 World Acceptance Corp.*.................... 150 5,907 ----------- TOTAL CONSUMER FINANCE 39,438 ----------- CONTAINERS & PACKAGING 0.6% AEP Industries, Inc.*...................... 50 1,411 AptarGroup, Inc. .......................... 600 26,490 Boise, Inc.*............................... 360 1,505 Chesapeake Corp.*.......................... 170 745 Graphic Packaging Holding Co.*............. 590 1,652 Greif, Inc. ............................... 290 18,734 Myers Industries, Inc. .................... 240 3,019 Rock-Tenn Co. ............................. 290 9,840 Silgan Holdings, Inc. ..................... 210 11,189 ----------- TOTAL CONTAINERS & PACKAGING 74,585 -----------
See Notes to Financial Statements. SEMI-ANNUAL REPORT 29 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) DISTRIBUTORS 0.2% Audiovox Corp. -- Class A*................. 140 $1,529 Building Materials Holding Corp. .......... 250 1,165 Core-Mark Holding Co., Inc.*............... 80 2,293 LKQ Corp.*................................. 970 21,107 Source Interlink Cos., Inc.*............... 300 423 ----------- TOTAL DISTRIBUTORS 26,517 ----------- DIVERSIFIED CONSUMER SERVICES 1.3% American Public Education, Inc.*........... 50 1,611 Bright Horizons Family Solutions, Inc.*.... 230 10,904 Capella Education Co.*..................... 90 5,804 Coinstar, Inc.*............................ 240 7,654 Corinthian Colleges, Inc.*................. 750 8,512 CPI Corp. ................................. 40 754 DeVry, Inc. ............................... 520 29,640 INVESTools, Inc.*.......................... 450 5,215 Jackson Hewitt Tax Service, Inc. .......... 240 3,578 K12, Inc.*................................. 50 1,274 Lincoln Educational Services Corp.*........ 40 467 Matthews International Corp. -- Class A.... 270 13,349 Pre-Paid Legal Services, Inc.*............. 70 3,062 Regis Corp. ............................... 380 11,096 Sotheby's.................................. 570 15,789 Steiner Leisure, Ltd.*..................... 140 4,633 Stewart Enterprises, Inc. ................. 820 5,601 Strayer Education, Inc. ................... 130 24,140 Universal Technical Institute, Inc.*....... 180 2,041 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 155,124 ----------- DIVERSIFIED FINANCIAL SERVICES 0.3% Ampal-American Israel Corp. -- Class A*.... 180 1,111 Asset Acceptance Capital Corp. ............ 130 1,566 Asta Funding, Inc. ........................ 100 1,427 Compass Diversified Holdings............... 180 2,207 Encore Capital Group, Inc.*................ 140 938 Financial Federal Corp. ................... 220 5,137 Interactive Brokers Group, Inc.*........... 340 10,734 MarketAxess Holdings, Inc.*................ 270 2,373 NewStar Financial, Inc.*................... 160 861 Pico Holdings, Inc.*....................... 130 4,592 Portfolio Recovery Associates, Inc. ....... 130 5,721 Primus Guaranty, Ltd.*..................... 390 1,739 Resource America, Inc. .................... 110 958 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 39,364 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.9% Alaska Communications Systems Group, Inc. ................................... 370 4,137 Atlantic Tele-Network, Inc. ............... 80 2,490 Cbeyond, Inc.*............................. 180 3,553 Cincinnati Bell, Inc.*..................... 2,130 9,883 Cogent Communications Group, Inc.*......... 400 8,404 Consolidated Communications Holdings, Inc. ................................... 200 2,860 Fairpoint Communications, Inc. ............ 780 7,184 General Communication, Inc. -- Class A*.... 460 2,857 Global Crossing Ltd.*...................... 310 5,183 Globalstar, Inc.*.......................... 170 551 Hungarian Telephone & Cable Corp.*......... 30 484 iBasis, Inc. .............................. 290 925 IDT Corp. -- Class B*...................... 390 1,494 Iowa Telecommunications Services, Inc. .... 270 4,676 NTELOS Holdings Corp. ..................... 240 6,211 PAETEC Holding Corp.*...................... 640 4,934 Premiere Global Services, Inc.*............ 530 7,696 Shenandoah Telecom Co. .................... 200 2,712 SureWest Communications.................... 120 1,669 Time Warner Telecom, Inc.*................. 1,250 24,500 Vonage Holdings Corp.*..................... 560 1,103 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 103,506 ----------- ELECTRIC UTILITIES 1.3% Allete, Inc. .............................. 220 9,189 Aquila, Inc.*.............................. 3,230 11,628 Central Vermont Public Service Corp. ...... 90 2,097 Cleco Corp. ............................... 510 12,245 El Paso Electric Co.*...................... 390 8,802 Empire District Electric Co. .............. 290 6,041 IDACORP, Inc. ............................. 380 12,327 ITC Holdings Corp. ........................ 420 23,428 MGE Energy, Inc. .......................... 180 6,262 NorthWestern Corp. ........................ 340 8,439 Otter Tail Corp. .......................... 260 9,641 Portland General Electric Co. ............. 260 6,240 UIL Holdings Corp. ........................ 220 6,886 Unisource Energy Corp. .................... 300 9,372 Westar Energy, Inc. ....................... 860 19,943 ----------- TOTAL ELECTRIC UTILITIES 152,540 ----------- ELECTRICAL EQUIPMENT 1.6% Acuity Brands, Inc. ....................... 350 16,744 American Superconductor Corp.*............. 350 8,848 AO Smith Corp. ............................ 180 5,569 AZZ, Inc.*................................. 100 2,668 Baldor Electric Co. ....................... 390 12,636 Belden CDT, Inc. .......................... 390 13,159 Brady Corp. ............................... 430 14,599 Coleman Cable, Inc.*....................... 70 844 Encore Wire Corp. ......................... 200 4,520 Energy Conversion Devices, Inc.*........... 340 11,081 EnerSys*................................... 180 4,212 Evergreen Solar, Inc.*..................... 870 7,473 Franklin Electric Co., Inc. ............... 170 6,582 FuelCell Energy, Inc.*..................... 570 5,033 GrafTech International, Ltd.*.............. 900 17,685 II-VI, Inc.*............................... 200 7,428 LSI Industries, Inc. ...................... 160 1,754 Medis Technologies, Ltd.*.................. 210 1,762 Orion Energy Systems, Inc.*................ 80 894 Polypore International, Inc.*.............. 130 3,043 Powell Industries, Inc.*................... 70 2,945 Power-One, Inc.*........................... 600 1,794 Preformed Line Products Co. ............... 20 986 Regal-Beloit Corp. ........................ 280 10,385 Superior Essex, Inc.*...................... 180 5,351 Vicor Corp. ............................... 170 2,050 Woodward Governor Co. ..................... 520 18,268 ----------- TOTAL ELECTRICAL EQUIPMENT 188,313 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.2% Acacia Research -- Acacia Technologies*.... 260 1,383 Agilysys, Inc. ............................ 200 2,192 Anixter International, Inc.*............... 270 15,382 Benchmark Electronics, Inc.*............... 630 11,201
See Notes to Financial Statements. SEMI-ANNUAL REPORT 30 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Brightpoint, Inc.*......................... 440 $4,030 Checkpoint Systems, Inc.*.................. 340 8,816 Cogent, Inc.*.............................. 380 3,545 Cognex Corp. .............................. 380 9,576 Comverge, Inc.*............................ 60 787 CPI International, Inc.*................... 60 687 CTS Corp. ................................. 290 3,263 Daktronics, Inc. .......................... 270 3,993 DTS, Inc.*................................. 160 4,720 Echelon Corp.*............................. 260 2,928 Electro Scientific Industries, Inc.*....... 250 4,102 Excel Technology, Inc.*.................... 100 2,359 FARO Technologies, Inc.*................... 140 4,934 FLIR Systems, Inc.*........................ 1,140 39,136 Gerber Scientific, Inc.*................... 200 1,854 ICx Technologies, Inc.*.................... 40 242 Insight Enterprises, Inc.*................. 420 5,065 IPG Photonics Corp.*....................... 90 1,506 Itron, Inc.*............................... 260 24,201 KEMET Corp.*............................... 720 2,930 L-1 Identity Solutions, Inc.*.............. 550 7,925 Littelfuse, Inc.*.......................... 190 6,984 LoJack Corp.*.............................. 160 1,582 Measurement Specialties, Inc.*............. 120 1,943 Mercury Computer Systems, Inc.*............ 190 1,524 Methode Electronics, Inc. ................. 310 3,360 MTS Systems Corp. ......................... 150 5,157 Multi-Fineline Electronix, Inc.*........... 70 1,323 Newport Corp.*............................. 280 3,223 OSI Systems, Inc.*......................... 130 3,179 Park Electrochemical Corp. ................ 170 4,607 PC Connection, Inc.*....................... 80 598 Plexus Corp.*.............................. 400 9,636 Radisys Corp.*............................. 190 1,792 Rofin-Sinar Technologies, Inc.*............ 270 10,282 Rogers Corp.*.............................. 150 5,136 Scansource, Inc.*.......................... 220 5,493 Smart Modular Technologies WWH, Inc.*...... 430 2,593 SYNNEX Corp.*.............................. 140 3,343 Technitrol, Inc. .......................... 350 7,350 TTM Technologies, Inc.*.................... 360 4,792 Universal Display Corp.*................... 230 3,402 X-Rite, Inc.*.............................. 250 630 Zygo Corp.*................................ 130 1,516 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 256,202 ----------- ENERGY EQUIPMENT & SERVICES 2.6% Allis-Chalmers Energy, Inc.*............... 220 3,527 Atwood Oceanics, Inc.*..................... 240 24,166 Basic Energy Services, Inc.*............... 350 8,120 Bristow Group, Inc.*....................... 170 8,968 Bronco Drilling Co., Inc.*................. 220 3,784 Cal Dive International, Inc.*.............. 370 4,510 CARBO Ceramics, Inc. ...................... 170 8,080 Complete Production Services, Inc.*........ 370 9,994 Dawson Geophysical Co.*.................... 70 5,064 Dril-Quip, Inc.*........................... 230 13,147 ENGlobal Corp.*............................ 140 1,407 Exterran Holdings, Inc.*................... 520 34,731 Geokinetics, Inc.*......................... 60 1,139 Grey Wolf, Inc.*........................... 1,590 9,969 Gulf Island Fabrication, Inc. ............. 90 3,559 Gulfmark Offshore, Inc.*................... 200 11,960 Hercules Offshore, Inc.*................... 720 18,979 Hornbeck Offshore Services, Inc.*.......... 200 9,974 ION Geophysical Corp.*..................... 710 11,310 Lufkin Industries, Inc. ................... 130 9,809 Matrix Service Co.*........................ 230 4,625 NATCO Group, Inc.*......................... 160 8,096 Newpark Resources, Inc.*................... 770 4,227 Oil States International, Inc.*............ 420 21,025 OYO Geospace Corp.*........................ 30 1,452 Parker Drilling Co.*....................... 960 7,699 PHI, Inc.*................................. 120 4,508 Pioneer Drilling Co.*...................... 430 7,022 RPC, Inc. ................................. 280 3,576 SulphCo, Inc.*............................. 400 1,408 Superior Well Services, Inc.*.............. 140 3,333 T-3 Energy Services, Inc.*................. 50 2,640 Trico Marine Services, Inc.*............... 100 3,769 Union Drilling, Inc.*...................... 120 2,029 W-H Energy Services, Inc.*................. 260 20,095 Willbros Group, Inc.*...................... 320 11,549 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 309,250 ----------- FOOD & STAPLES RETAILING 0.8% Andersons, Inc. ........................... 130 5,908 Arden Group, Inc. -- Class A............... 10 1,340 Casey's General Stores, Inc. .............. 440 9,737 Great Atlantic & Pacific Tea Co., Inc.*.... 240 6,605 Ingles Markets, Inc. ...................... 110 2,510 Longs Drug Stores Corp. ................... 280 11,217 Nash Finch Co. ............................ 120 4,390 Pantry, Inc.*.............................. 200 2,170 Performance Food Group Co.*................ 300 10,038 PriceSmart, Inc. .......................... 120 3,426 Ruddick Corp. ............................. 350 13,545 Spartan Stores, Inc. ...................... 190 3,967 United Natural Foods, Inc.*................ 370 7,326 Village Super Market -- Class A............ 30 1,413 Weis Markets, Inc. ........................ 110 3,378 Winn-Dixie Stores, Inc.*................... 290 5,142 ----------- TOTAL FOOD & STAPLES RETAILING 92,112 ----------- FOOD PRODUCTS 1.1% Alico, Inc. ............................... 30 1,198 American Dairy, Inc.*...................... 60 696 Cal-Maine Foods, Inc. ..................... 110 3,251 Chiquita Brands International, Inc.*....... 370 8,417 Darling International, Inc.*............... 700 10,689 Farmer Brothers Co. ....................... 60 1,483 Flowers Foods, Inc. ....................... 660 17,087 Fresh Del Monte Produce, Inc.*............. 260 8,239 Green Mountain Coffee Roasters, Inc.*...... 150 4,830 Hain Celestial Group, Inc.*................ 340 8,391 Imperial Sugar Co. ........................ 100 1,577 J&J Snack Foods Corp. ..................... 120 3,437 Lancaster Colony Corp. .................... 180 6,874 Lance, Inc. ............................... 270 5,659 Maui Land & Pineapple Co., Inc.*........... 40 1,260 Pilgrim's Pride Corp. ..................... 350 8,459 Ralcorp Holdings, Inc.*.................... 220 13,429 Reddy Ice Holdings, Inc. .................. 190 2,516 Sanderson Farms, Inc. ..................... 150 6,251
See Notes to Financial Statements. SEMI-ANNUAL REPORT 31 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Synutra International, Inc.*............... 40 $1,328 Tootsie Roll Industries, Inc. ............. 320 7,786 TreeHouse Foods, Inc.*..................... 270 6,121 ----------- TOTAL FOOD PRODUCTS 128,978 ----------- GAS UTILITIES 0.8% EnergySouth, Inc. ......................... 60 3,243 Laclede Group, Inc. ....................... 190 7,186 New Jersey Resources Corp. ................ 360 11,466 Nicor, Inc. ............................... 390 13,697 Northwest Natural Gas Co. ................. 230 10,320 Piedmont Natural Gas Co., Inc. ............ 640 16,826 South Jersey Industries, Inc. ............. 250 9,127 Southwest Gas Corp. ....................... 360 10,393 WGL Holdings, Inc. ........................ 420 13,776 ----------- TOTAL GAS UTILITIES 96,034 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 3.1% Abaxis, Inc.*.............................. 180 4,586 Abiomed, Inc.*............................. 250 3,648 Accuray, Inc.*............................. 140 1,096 Align Technology, Inc.*.................... 510 6,263 American Medical Systems Holdings, Inc.*... 620 8,742 Analogic Corp. ............................ 110 6,335 Angiodynamics, Inc.*....................... 180 2,660 Arthrocare Corp.*.......................... 240 10,815 Aspect Medical Systems, Inc.*.............. 130 868 Cantel Medical Corp.*...................... 100 955 Conceptus, Inc.*........................... 250 4,505 CONMED Corp.*.............................. 240 6,125 CryoLife, Inc.*............................ 210 2,230 Cutera, Inc.*.............................. 110 1,463 Cyberonics, Inc.*.......................... 200 3,160 Cynosure, Inc. -- Class A*................. 70 1,821 Datascope Corp. ........................... 110 4,121 ev3, Inc.*................................. 400 3,324 Greatbatch, Inc.*.......................... 190 3,454 Haemonetics Corp.*......................... 230 13,163 Hansen Medical, Inc.*...................... 80 1,396 Hologic, Inc.*............................. 2,110 61,591 I-Flow Corp.*.............................. 180 2,403 ICU Medical, Inc.*......................... 110 2,763 Immucor, Inc.*............................. 590 15,918 Insulet Corp.*............................. 70 1,282 Integra LifeSciences Holdings Corp.*....... 160 6,779 Invacare Corp. ............................ 250 4,510 Inverness Medical Innovations, Inc.*....... 650 24,050 Kensey Nash Corp.*......................... 100 2,916 Masimo Corp.*.............................. 120 3,498 Medical Action Industries, Inc.*........... 120 1,967 Mentor Corp. .............................. 290 8,488 Meridian Bioscience, Inc. ................. 340 9,156 Merit Medical Systems, Inc.*............... 240 3,530 Micrus Endovascular Corp.*................. 130 1,479 Minrad International, Inc.*................ 410 951 Natus Medical, Inc.*....................... 190 3,737 Northstar Neuroscience, Inc.*.............. 170 306 NuVasive, Inc.*............................ 300 11,445 NxStage Medical, Inc.*..................... 170 983 OraSure Technologies, Inc.*................ 400 2,584 Orthofix International NV*................. 140 4,306 Palomar Medical Technologies, Inc.*........ 160 2,256 Quidel Corp.*.............................. 250 4,003 RTI Biologics, Inc.*....................... 390 3,955 Sirona Dental Systems, Inc.*............... 140 3,748 Sonic Innovations, Inc.*................... 230 984 SonoSite, Inc.*............................ 140 4,465 Spectranetics Corp.*....................... 270 2,905 Stereotaxis, Inc.*......................... 230 1,566 STERIS Corp. .............................. 560 15,518 SurModics, Inc.*........................... 130 5,781 Symmetry Medical, Inc.*.................... 300 4,209 Thoratec Corp.*............................ 460 7,356 TomoTherapy, Inc.*......................... 100 976 Trans1, Inc.*.............................. 60 783 Vital Signs, Inc. ......................... 90 4,710 Volcano Corp.*............................. 250 2,958 West Pharmaceutical Services, Inc. ........ 280 13,135 Wright Medical Group, Inc.*................ 310 8,655 Zoll Medical Corp.*........................ 180 6,008 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 359,343 ----------- HEALTH CARE PROVIDERS & SERVICES 2.3% Air Methods Corp.*......................... 90 3,609 Alliance Imaging, Inc.*.................... 220 1,793 Amedisys, Inc.*............................ 220 11,396 American Dental Partners, Inc.*............ 110 1,276 AMERIGROUP Corp.*.......................... 450 11,695 AMN Healthcare Services, Inc.*............. 300 4,377 Amsurg Corp.*.............................. 260 6,640 Animal Health International, Inc.*......... 100 879 Apria Healthcare Group, Inc.*.............. 380 6,696 Assisted Living Concepts, Inc.*............ 480 3,509 athenahealth, Inc.*........................ 60 1,500 Bio-Reference Labs, Inc.*.................. 100 2,518 BMP Sunstone Corp.*........................ 260 1,843 Capital Senior Living Corp.*............... 200 1,702 Centene Corp.*............................. 380 6,981 Chemed Corp. .............................. 210 7,161 Corvel Corp.*.............................. 70 2,303 Cross Country Healthcare, Inc.*............ 280 3,349 Emergency Medical Services Corp. -- Class A*...................................... 80 1,806 Emeritus Corp.*............................ 110 2,711 Ensign Group, Inc. ........................ 40 384 Genoptix, Inc.*............................ 50 1,372 Gentiva Health Services, Inc.*............. 240 5,218 HealthExtras, Inc.*........................ 270 7,619 HEALTHSOUTH Corp.*......................... 680 13,376 Healthspring, Inc.*........................ 410 6,904 Healthways, Inc.*.......................... 300 10,959 HMS Holdings Corp.*........................ 190 4,896 Hythiam, Inc.*............................. 320 867 inVentiv Health, Inc.*..................... 270 8,027 IPC The Hospitalist Co., Inc.*............. 50 1,174 Kindred Healthcare, Inc.*.................. 250 5,932 Landauer, Inc. ............................ 80 4,260 LCA-Vision, Inc. .......................... 160 1,618 LHC Group, Inc.*........................... 120 1,872 Magellan Health Services, Inc.*............ 340 13,121 Matria Healthcare, Inc.*................... 180 4,590 MedCath Corp.*............................. 90 1,670 Molina Healthcare, Inc.*................... 120 2,980 MWI Veterinary Supply, Inc.*............... 70 2,413 National Healthcare Corp. ................. 60 3,005
See Notes to Financial Statements. SEMI-ANNUAL REPORT 32 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Nighthawk Radiology Holdings, Inc.*........ 180 $1,350 Odyssey HealthCare, Inc.*.................. 290 2,654 Owens & Minor, Inc. ....................... 350 15,862 PharMerica Corp.*.......................... 230 3,917 Providence Service Corp.*.................. 100 2,814 PSS World Medical, Inc.*................... 550 9,058 Psychiatric Solutions, Inc.*............... 470 16,314 RehabCare Group, Inc.*..................... 150 2,550 Res-Care, Inc.*............................ 210 3,421 Skilled Healthcare Group, Inc.*............ 190 2,299 Sun Healthcare Group, Inc.*................ 370 4,865 Sunrise Senior Living, Inc.*............... 390 8,365 Triple-S Management Corp. -- Class B*...... 120 2,189 Universal American Corp.*.................. 420 4,507 Virtual Radiologic Corp.*.................. 40 559 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 266,725 ----------- HEALTH CARE TECHNOLOGY 0.3% Allscripts Healthcare Solutions, Inc.*..... 480 5,357 Computer Programs & Systems, Inc. ......... 80 1,522 Eclipsys Corp.*............................ 390 8,100 MedAssets, Inc.*........................... 130 1,951 Omnicell, Inc.*............................ 290 3,486 Phase Forward, Inc.*....................... 350 6,440 TriZetto Group, Inc.*...................... 370 7,788 Vital Images, Inc.*........................ 150 2,265 ----------- TOTAL HEALTH CARE TECHNOLOGY 36,909 ----------- HOLDING COMPANIES 0.2% Alternative Asset Management Acquisition Corp.*.................................. 360 3,323 Energy Infrastructure Acquisition Corp.*... 190 1,898 Heckmann Corp.*............................ 460 3,395 Hicks Acquisition Co. I, Inc.*............. 480 4,382 Marathon Acquisition Corp.*................ 330 2,554 NRDC Acquisition Corp.*.................... 360 3,312 NTR Acquisition Co.*....................... 210 2,018 Triplecrown Acquisition Corp.*............. 410 3,711 ----------- TOTAL HOLDING COMPANIES 24,593 ----------- HOTELS, RESTAURANTS & LEISURE 2.2% AFC Enterprises, Inc.*..................... 240 2,484 Ambassadors Group, Inc. ................... 140 2,724 Ambassadors International, Inc. ........... 80 403 Ameristar Casinos, Inc. ................... 220 3,777 Bally Technologies, Inc.*.................. 460 15,497 Benihana, Inc. -- Class A*................. 110 1,142 BJ's Restaurants, Inc.*.................... 150 2,091 Bluegreen Corp.*........................... 180 1,265 Bob Evans Farms, Inc. ..................... 270 7,579 Buffalo Wild Wings, Inc.*.................. 130 3,997 California Pizza Kitchen, Inc.*............ 220 3,430 Carrols Restaurant Group, Inc.*............ 90 725 CBRL Group, Inc. .......................... 190 7,019 CEC Entertainment, Inc.*................... 200 7,440 Chipotle Mexican Grill, Inc.*.............. 280 23,792 Churchill Downs, Inc. ..................... 80 4,084 CKE Restaurants, Inc. ..................... 490 5,140 Denny's Corp.*............................. 810 2,552 Domino's Pizza, Inc. ...................... 380 5,046 Dover Downs Gaming & Entertainment, Inc. .. 130 1,050 Gaylord Entertainment Co.*................. 350 10,367 Great Wolf Resorts, Inc.*.................. 260 1,589 IHOP Corp. ................................ 150 6,996 Isle of Capri Casinos, Inc.*............... 140 944 Jack in the Box, Inc.*..................... 510 13,642 Jamba, Inc.*............................... 450 1,130 Krispy Kreme Doughnuts, Inc.*.............. 560 1,730 Landry's Restaurants, Inc. ................ 110 1,757 Life Time Fitness, Inc.*................... 290 10,541 Lodgian, Inc.*............................. 150 1,457 Magna Entertainment Corp. -- Class A*...... 350 123 Marcus Corp. .............................. 180 2,986 McCormick & Schmick's Seafood Restaurants, Inc.*................................... 130 1,564 Monarch Casino & Resort, Inc.*............. 100 1,324 Morgans Hotel Group Co.*................... 180 2,518 Morton's Restaurant Group, Inc.*........... 90 719 MTR Gaming Group, Inc.*.................... 180 1,103 Multimedia Games, Inc.*.................... 200 852 O'Charleys, Inc. .......................... 190 2,204 P.F. Chang's China Bistro, Inc.*........... 210 6,516 Papa John's International, Inc.*........... 190 5,130 Peet's Coffee & Tea, Inc.*................. 120 2,788 Pinnacle Entertainment, Inc.*.............. 510 7,915 Premier Exhibitions, Inc.*................. 250 1,453 Red Robin Gourmet Burgers, Inc.*........... 140 5,751 Riviera Holdings Corp.*.................... 90 1,486 Ruby Tuesday, Inc. ........................ 470 4,000 Ruth's Chris Steak House*.................. 160 1,176 Shuffle Master, Inc.*...................... 300 1,473 Six Flags, Inc.*........................... 610 1,098 Sonic Corp.*............................... 520 11,435 Speedway Motorsports, Inc. ................ 120 3,125 Steak n Shake Co.*......................... 250 1,980 Texas Roadhouse, Inc. -- Class A*.......... 450 5,310 Town Sports International Holdings, Inc.*.. 140 1,039 Triarc Cos., Inc. -- Class A............... 540 3,834 Trump Entertainment Resorts, Inc.*......... 270 753 Vail Resorts, Inc.*........................ 270 13,184 WMS Industries, Inc.*...................... 350 12,666 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 256,895 ----------- HOUSEHOLD DURABLES 0.9% American Greetings Corp. -- Class A........ 450 8,055 Avatar Holdings, Inc.*..................... 50 2,043 Beazer Homes USA, Inc. .................... 340 3,764 Blyth, Inc. ............................... 210 3,536 Brookfield Homes Corp. .................... 100 1,574 Champion Enterprises, Inc.*................ 660 6,811 CSS Industries, Inc. ...................... 70 2,189 Ethan Allen Interiors, Inc. ............... 210 5,769 Furniture Brands International, Inc. ...... 420 5,691 Helen of Troy, Ltd.*....................... 260 4,396 Hooker Furniture Corp. .................... 100 2,097 Hovnanian Enterprises, Inc. -- Class A*.... 320 3,782 iRobot Corp.*.............................. 130 2,085 La-Z-Boy, Inc. ............................ 440 2,803 Libbey, Inc. .............................. 120 1,704 Lifetime Brands, Inc. ..................... 90 767 M/I Homes, Inc. ........................... 100 1,715 Meritage Homes Corp.*...................... 230 4,363 National Presto Industries, Inc. .......... 40 2,168 Palm Harbor Homes, Inc.*................... 80 689 Russ Berrie & Co., Inc.*................... 140 1,963
See Notes to Financial Statements. SEMI-ANNUAL REPORT 33 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Sealy Corp. ............................... 390 $2,379 Skyline Corp. ............................. 60 1,651 Standard Pacific Corp. .................... 560 2,834 Syntax-Brillian Corp.*..................... 490 598 Tarragon Corp.*............................ 120 293 Tempur-Pedic International, Inc. .......... 650 7,221 Tupperware Brands Corp. ................... 530 20,882 Universal Electronics, Inc.*............... 120 3,084 WCI Communities, Inc.*..................... 270 888 ----------- TOTAL HOUSEHOLD DURABLES 107,794 ----------- HOUSEHOLD PRODUCTS 0.1% Central Garden & Pet Co.*.................. 600 3,012 Spectrum Brands, Inc.*..................... 340 1,527 WD-40 Co. ................................. 150 4,668 ----------- TOTAL HOUSEHOLD PRODUCTS 9,207 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2% Black Hills Corp. ......................... 320 12,483 Ormat Technologies, Inc. .................. 120 5,916 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 18,399 ----------- INDUSTRIAL CONGLOMERATES 0.4% Raven Industries, Inc. .................... 140 4,289 Standex International Corp. ............... 110 2,319 Tredegar Corp. ............................ 240 3,922 Walter Industries, Inc. ................... 450 31,212 ----------- TOTAL INDUSTRIAL CONGLOMERATES 41,742 ----------- INSURANCE 3.0% American Equity Investment Life Holding Co. .................................... 490 4,728 American Physicians Capital, Inc. ......... 70 3,245 Amerisafe, Inc.*........................... 160 2,282 Amtrust Financial Services, Inc. .......... 220 3,421 Argo Group International Holdings, Ltd.*... 250 8,955 Aspen Insurance Holdings, Ltd. ............ 760 19,752 Assured Guaranty, Ltd. .................... 690 17,450 Baldwin & Lyons, Inc. ..................... 70 1,664 Castlepoint Holdings, Ltd. ................ 70 644 Citizens, Inc.*............................ 320 2,256 CNA Surety Corp.*.......................... 140 1,852 Commerce Group, Inc. ...................... 420 15,305 Crawford & Co. -- Class B*................. 220 1,142 Darwin Professional Underwriters, Inc.*.... 70 1,733 Delphi Financial Group..................... 370 10,071 Donegal Group, Inc. -- Class A............. 110 1,869 eHealth, Inc.*............................. 110 2,976 EMC Insurance Group, Inc. ................. 50 1,460 Employers Holdings, Inc. .................. 430 8,204 Enstar Group, Ltd.*........................ 60 6,524 FBL Financial Group, Inc. ................. 120 3,323 First Acceptance Corp.*.................... 150 467 First Mercury Financial Corp.*............. 110 1,738 Flagstone Reinsurance Holdings, Ltd. ...... 120 1,468 FPIC Insurance Group, Inc.*................ 80 3,722 Greenlight Capital Re, Ltd.*............... 90 1,577 Hallmark Financial Services*............... 40 433 Harleysville Group, Inc. .................. 130 4,738 Hilb Rogal & Hobbs Co. .................... 320 9,258 Hilltop Holdings, Inc.*.................... 410 4,330 Horace Mann Educators Corp. ............... 350 5,922 Independence Holding Co. .................. 50 670 Infinity Property & Casualty Corp. ........ 140 5,426 IPC Holdings, Ltd. ........................ 520 15,137 Kansas City Life Insurance Co. ............ 40 2,000 LandAmerica Financial Group, Inc. ......... 130 3,731 Max Capital Group, Ltd. ................... 480 11,237 Meadowbrook Insurance Group, Inc. ......... 280 2,027 Montpelier Re Holdings, Ltd. .............. 830 13,695 National Financial Partners Corp. ......... 320 8,614 National Interstate Corp. ................. 50 1,138 National Western Life Insurance Co. ....... 20 5,072 Navigators Group, Inc.*.................... 110 5,390 NYMAGIC, Inc. ............................. 50 1,138 Odyssey Re Holdings Corp. ................. 230 8,229 Phoenix Cos., Inc. ........................ 980 12,740 Platinum Underwriters Holdings, Ltd. ...... 460 16,500 PMA Capital Corp. -- Class A*.............. 280 2,598 Presidential Life Corp. ................... 190 3,222 ProAssurance Corp.*........................ 290 15,350 RAM Holdings, Ltd.*........................ 160 275 RLI Corp. ................................. 170 8,160 Safety Insurance Group, Inc. .............. 140 5,026 SeaBright Insurance Holdings, Inc.*........ 180 2,794 Security Capital Assurance, Ltd. .......... 210 206 Selective Insurance Group, Inc. ........... 470 10,020 State Auto Financial Corp. ................ 120 3,306 Stewart Information Services Corp. ........ 150 3,674 Tower Group, Inc. ......................... 170 3,993 United America Indemnity, Ltd.*............ 210 3,247 United Fire & Casualty Co. ................ 190 6,260 Validus Holdings, Ltd. .................... 140 3,185 Zenith National Insurance Corp. ........... 320 11,885 ----------- TOTAL INSURANCE 348,454 ----------- INTERNET & CATALOG RETAIL 0.7% 1-800-FLOWERS.COM, Inc. -- Class A*........ 210 1,852 Blue Nile, Inc.*........................... 120 5,960 FTD Group, Inc. ........................... 160 2,200 Gaiam, Inc. -- Class A*.................... 150 2,640 GSI Commerce, Inc.*........................ 170 2,366 NetFlix, Inc.*............................. 360 11,513 Orbitz Worldwide, Inc.*.................... 290 2,306 Overstock.com, Inc.*....................... 140 2,691 PetMed Express, Inc.*...................... 180 2,020 Priceline.com, Inc.*....................... 330 42,121 Shutterfly, Inc.*.......................... 130 2,126 Stamps.com, Inc.*.......................... 140 1,919 Systemax, Inc. ............................ 90 1,440 ValueVision Media, Inc.- Class A*.......... 260 1,453 ----------- TOTAL INTERNET & CATALOG RETAIL 82,607 ----------- INTERNET SOFTWARE & SERVICES 2.1% Ariba, Inc.*............................... 730 8,665 Art Technology Group, Inc.*................ 1,100 3,938 AsiaInfo Holdings, Inc.*................... 270 3,286 Bankrate, Inc.*............................ 100 5,224 Chordiant Software, Inc.*.................. 280 1,277 CMGI, Inc.*................................ 420 5,809 CNET Networks, Inc.*....................... 1,300 10,075 comScore, Inc.*............................ 50 944 Constant Contact, Inc.*.................... 60 1,071 DealerTrack Holdings, Inc.*................ 310 5,964 Dice Holdings, Inc.*....................... 150 1,023
See Notes to Financial Statements. SEMI-ANNUAL REPORT 34 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Digital River, Inc.*....................... 360 $11,826 DivX, Inc.*................................ 200 1,496 EarthLink, Inc.*........................... 950 8,673 Equinix, Inc.*............................. 310 28,030 Greenfield Online, Inc.*................... 190 2,168 HSW International, Inc.*................... 130 521 Imergent, Inc. ............................ 100 1,141 InfoSpace, Inc. ........................... 280 3,377 Internap Network Services Corp.*........... 420 2,020 Internet Brands, Inc. -- Class A*.......... 50 326 Internet Capital Group, Inc.*.............. 330 3,316 Interwoven, Inc.*.......................... 380 4,279 Ipass, Inc.*............................... 430 1,225 j2 Global Communications, Inc.*............ 430 9,202 Keynote Systems, Inc.*..................... 140 1,617 Knot, Inc.*................................ 240 2,818 Limelight Networks, Inc.*.................. 160 445 Liquidity Services, Inc.*.................. 90 734 LivePerson, Inc.*.......................... 350 1,180 LoopNet, Inc.*............................. 230 2,597 Marchex, Inc. ............................. 240 2,479 Mercadolibre, Inc.*........................ 140 7,081 Move, Inc.*................................ 900 2,835 NIC, Inc. ................................. 340 2,203 Omniture, Inc.*............................ 380 8,672 On2 Technologies, Inc.*.................... 1,380 1,201 Openwave Systems, Inc. .................... 710 1,519 Perficient, Inc.*.......................... 270 2,479 RealNetworks, Inc.*........................ 830 5,113 S1 Corp.*.................................. 440 2,974 SAVVIS, Inc.*.............................. 240 3,516 Sohu.com, Inc.*............................ 240 16,591 SonicWALL, Inc.*........................... 520 3,999 Switch & Data Facilities Co., Inc.*........ 110 1,665 TechTarget, Inc.*.......................... 70 939 Terremark Worldwide, Inc.*................. 440 2,649 TheStreet.com, Inc. ....................... 190 1,484 Travelzoo, Inc.*........................... 60 668 United Online, Inc. ....................... 570 6,088 ValueClick, Inc.*.......................... 860 17,157 Vignette Corp.*............................ 210 2,425 VistaPrint, Ltd.*.......................... 370 12,591 Vocus, Inc.*............................... 110 3,057 Websense, Inc.*............................ 390 7,585 ----------- TOTAL INTERNET SOFTWARE & SERVICES 251,237 ----------- IT SERVICES 1.6% BearingPoint, Inc.*........................ 1,850 3,423 CACI International, Inc. -- Class A*....... 270 13,532 Cass Information Systems, Inc. ............ 60 2,023 Ciber, Inc.*............................... 470 2,942 CSG Systems International, Inc.*........... 290 3,509 Cybersource Corp.*......................... 550 9,983 Euronet Worldwide, Inc.*................... 390 6,895 ExlService Holdings, Inc.*................. 190 4,773 Forrester Research, Inc.*.................. 130 3,749 Gartner, Inc.*............................. 560 12,835 Gevity HR, Inc. ........................... 210 1,432 Global Cash Access Holdings, Inc.*......... 380 2,348 Heartland Payment Systems, Inc. ........... 140 3,066 iGate Corp.*............................... 190 1,545 Information Services Group, Inc.*.......... 210 1,088 infoUSA, Inc. ............................. 280 1,588 Integral Systems, Inc. .................... 80 2,759 Lionbridge Technologies, Inc.*............. 520 1,534 Mantech International Corp. -- Class A*.... 170 8,121 MAXIMUS, Inc. ............................. 160 6,067 MPS Group, Inc.*........................... 820 8,799 Ness Technologies, Inc.*................... 290 2,630 Online Resources Corp.*.................... 250 2,528 Perot Systems Corp.*....................... 750 11,730 RightNow Technologies, Inc.*............... 160 1,915 Safeguard Scientifics, Inc.*............... 1,040 1,664 SAIC, Inc.*................................ 1,440 27,360 Sapient Corp.*............................. 700 4,984 SI International, Inc.*.................... 110 2,523 SRA International, Inc. -- Class A*........ 360 9,457 SYKES Enterprises, Inc.*................... 280 4,654 Syntel, Inc. .............................. 110 3,642 TNS, Inc.*................................. 210 4,830 Virtusa Corp.*............................. 40 444 Wright Express Corp.*...................... 340 11,220 ----------- TOTAL IT SERVICES 191,592 ----------- LEISURE EQUIPMENT & PRODUCTS 0.4% Arctic Cat, Inc. .......................... 100 758 Callaway Golf Co. ......................... 570 7,832 JAKKS Pacific, Inc.*....................... 240 5,637 Leapfrog Enterprises, Inc.*................ 300 2,493 Marine Products Corp. ..................... 100 736 MarineMax, Inc.*........................... 140 1,596 Nautilus, Inc. ............................ 270 975 Polaris Industries, Inc. .................. 290 13,499 RC2 Corp.*................................. 150 2,775 Smith & Wesson Holding Corp.*.............. 260 1,950 Steinway Musical Instruments, Inc.*........ 70 2,030 Sturm Ruger & Co., Inc.*................... 180 1,354 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 41,635 ----------- LIFE SCIENCES TOOLS & SERVICES 1.2% Affymetrix, Inc.*.......................... 590 6,437 Albany Molecular Research, Inc.*........... 210 2,440 AMAG Pharmaceuticals, Inc.*................ 140 5,744 Bio-Rad Laboratories, Inc. -- Class A*..... 160 13,336 Bruker BioSciences Corp.*.................. 560 6,787 Cambrex Corp. ............................. 250 1,463 Dionex Corp.*.............................. 160 12,515 Enzo Biochem, Inc.*........................ 270 2,209 eResearchTechnology, Inc.*................. 340 4,141 Exelixis, Inc.*............................ 900 6,849 Illumina, Inc.*............................ 460 35,829 Kendle International, Inc.*................ 110 4,696 Luminex Corp.*............................. 310 6,048 Medivation, Inc.*.......................... 180 2,754 Nektar Therapeutics*....................... 790 3,808 Parexel International Corp.*............... 480 12,192 PharmaNet Development Group, Inc.*......... 160 3,818 Varian, Inc.*.............................. 260 13,242 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 144,308 ----------- MACHINERY 3.1% 3D Systems Corp.*.......................... 150 2,278 Accuride Corp.*............................ 200 1,594
See Notes to Financial Statements. SEMI-ANNUAL REPORT 35 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Actuant Corp. ............................. 470 $15,919 Albany International Corp. -- Class A...... 250 9,075 Altra Holdings, Inc.*...................... 100 1,523 American Railcar Industries, Inc. ......... 80 1,650 Ampco-Pittsburgh Corp. .................... 60 2,713 Astec Industries, Inc.*.................... 160 5,864 Badger Meter, Inc. ........................ 120 6,248 Barnes Group, Inc. ........................ 400 10,432 Blount International, Inc.*................ 330 4,082 Briggs & Stratton Corp. ................... 430 6,545 Bucyrus International, Inc. -- Class A..... 320 40,298 Cascade Corp. ............................. 100 4,325 Chart Industries, Inc.*.................... 120 4,877 CIRCOR International, Inc. ................ 140 6,744 CLARCOR, Inc. ............................. 440 18,462 Columbus McKinnon Corp.*................... 160 4,530 Commercial Vehicle Group, Inc.*............ 180 2,169 Dynamic Materials Corp. ................... 100 4,703 EnPro Industries, Inc.*.................... 180 6,534 ESCO Technologies, Inc.*................... 220 10,243 Federal Signal Corp. ...................... 410 5,691 Flow International Corp.*.................. 320 3,210 Force Protection, Inc.*.................... 590 1,764 FreightCar America, Inc. .................. 110 4,224 Gehl Co.*.................................. 90 1,389 Gorman-Rupp Co. ........................... 120 4,204 Greenbrier Cos., Inc. ..................... 140 3,185 Hardinge, Inc. ............................ 100 1,668 Hurco Cos., Inc.*.......................... 50 2,289 Kadant, Inc.*.............................. 120 3,130 Kaydon Corp. .............................. 240 12,569 LB Foster Co. -- Class A*.................. 90 2,889 Lindsay Corp. ............................. 100 10,412 Middleby Corp.*............................ 120 7,530 Miller Industries, Inc.*................... 90 1,015 Mueller Industries, Inc. .................. 320 10,358 Mueller Water Products, Inc. .............. 990 7,969 NACCO Industries, Inc. .................... 50 4,495 Nordson Corp. ............................. 290 17,119 RBC Bearings, Inc.*........................ 180 7,195 Robbins & Myers, Inc. ..................... 240 9,566 Sun Hydraulics Corp. ...................... 100 3,018 Tecumseh Products Co. -- Class A*.......... 130 4,073 Tennant Co. ............................... 150 5,119 Titan International, Inc. ................. 210 7,482 Titan Machinery, Inc.*..................... 50 911 Trimas Corp.*.............................. 120 740 TurboChef Technologies, Inc.*.............. 170 1,472 Twin Disc, Inc. ........................... 80 1,442 Valmont Industries, Inc. .................. 160 15,754 Wabash National Corp. ..................... 260 2,179 Wabtec Corp. .............................. 420 18,010 Watts Water Technologies, Inc. ............ 260 6,986 Xerium Technologies, Inc. ................. 170 287 ----------- TOTAL MACHINERY 360,152 ----------- MARINE 0.3% American Commercial Lines, Inc.*........... 430 6,803 Eagle Bulk Shipping, Inc. ................. 400 11,772 Genco Shipping & Trading, Ltd. ............ 170 11,501 Horizon Lines, Inc. ....................... 260 2,743 TBS International, Ltd.*................... 40 1,607 Ultrapetrol Bahamas, Ltd.*................. 130 1,249 ----------- TOTAL MARINE 35,675 ----------- MEDIA 1.4% AH Belo Corp. -- Class A*.................. 150 1,462 Arbitron, Inc. ............................ 240 11,482 Belo Corp. -- Class A...................... 730 7,373 Carmike Cinemas, Inc. ..................... 110 902 Charter Communications, Inc. -- Class A*... 3,520 3,766 Cinemark Holdings, Inc. ................... 240 3,554 Citadel Broadcasting Corp. ................ 1,570 2,135 CKX, Inc.*................................. 330 2,970 Cox Radio, Inc. -- Class A*................ 270 3,140 Crown Media Holdings, Inc. -- Class A*..... 140 638 Cumulus Media, Inc.*....................... 240 1,416 DG FastChannel, Inc.*...................... 130 2,424 Dolan Media Co.*........................... 100 1,734 Emmis Communications Corp.*................ 260 809 Entercom Communications Corp. -- Class A... 260 2,756 Entravision Communications Corp.*.......... 540 3,775 Fisher Communications, Inc.*............... 50 1,638 GateHouse Media, Inc. ..................... 190 1,007 Gemstar-TV Guide International, Inc.*...... 2,160 8,705 Global Sources, Ltd.*...................... 150 2,083 Gray Television, Inc. ..................... 360 1,692 Harris Interactive, Inc.*.................. 450 1,125 Interactive Data Corp. .................... 310 8,364 Journal Communications, Inc. .............. 350 2,016 Knology, Inc.*............................. 220 2,820 Lakes Entertainment, Inc.*................. 150 696 Lee Enterprises, Inc. ..................... 400 3,092 Lin TV Corp. -- Class A*................... 230 2,305 Live Nation, Inc.*......................... 630 8,688 Lodgenet Entertainment Corp.*.............. 200 1,224 Martha Stewart Living Omnimedia, Inc.*..... 230 1,819 Marvel Entertainment, Inc.*................ 430 12,337 Media General, Inc. -- Class A............. 190 2,789 Mediacom Communications Corp.*............. 410 1,759 Morningstar, Inc.*......................... 110 6,378 National CineMedia, Inc. .................. 360 6,898 Nexstar Broadcasting Group, Inc.*.......... 90 508 Playboy Enterprises, Inc. -- Class B*...... 190 1,588 Primedia, Inc. ............................ 380 2,573 Radio One, Inc.*........................... 660 660 RCN Corp.*................................. 260 2,980 Salem Communications Corp. -- Class A...... 80 272 Scholastic Corp.*.......................... 260 7,319 Sinclair Broadcast Group, Inc. ............ 420 3,692 Spanish Broadcasting System, Inc.*......... 350 577 Sun-Times Media Group, Inc.*............... 560 392 Valassis Communications, Inc.*............. 410 5,822 Value Line, Inc. .......................... 10 448 Westwood One, Inc.*........................ 610 1,019 World Wrestling Entertainment, Inc. -- Class A......................... 190 3,353 ----------- TOTAL MEDIA 158,974 ----------- METALS & MINING 1.3% AM Castle & Co. ........................... 120 3,709 AMCOL International Corp. ................. 220 6,534 Apex Silver Mines, Ltd.*................... 510 5,125 Brush Engineered Materials, Inc.*.......... 170 5,272 Century Aluminum Co.*...................... 250 17,322
See Notes to Financial Statements. SEMI-ANNUAL REPORT 36 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Coeur d'Alene Mines Corp.*................. 4,230 $12,986 Compass Minerals International, Inc. ...... 280 17,640 Esmark, Inc.*.............................. 110 1,836 General Moly, Inc.*........................ 420 3,797 Haynes International, Inc.*................ 100 6,265 Hecla Mining Co.*.......................... 1,040 10,670 Horsehead Holding Corp.*................... 50 701 Kaiser Aluminum Corp. ..................... 130 8,922 Olympic Steel, Inc. ....................... 80 4,096 Royal Gold, Inc. .......................... 220 6,224 RTI International Metals, Inc.*............ 200 8,238 Schnitzer Steel Industries, Inc. .......... 190 16,720 Stillwater Mining Co.*..................... 360 5,105 Universal Stainless & Alloy*............... 60 2,296 US Gold Corp.*............................. 480 984 Worthington Industries, Inc. .............. 560 10,086 ----------- TOTAL METALS & MINING 154,528 ----------- MULTI-UTILITIES 0.2% Avista Corp. .............................. 450 9,239 CH Energy Group, Inc. ..................... 140 4,950 PNM Resources, Inc. ....................... 660 9,563 ----------- TOTAL MULTI-UTILITIES 23,752 ----------- MULTILINE RETAIL 0.1% 99 Cents Only Stores*...................... 400 3,804 Bon-Ton Stores, Inc. ...................... 90 789 Fred's, Inc. -- Class A.................... 350 3,878 Retail Ventures, Inc.*..................... 240 1,231 Tuesday Morning Corp.*..................... 260 1,415 ----------- TOTAL MULTILINE RETAIL 11,117 ----------- OIL, GAS & CONSUMABLE FUELS 4.5% Alon USA Energy, Inc. ..................... 110 1,535 Alpha Natural Resources, Inc.*............. 560 27,244 APCO Argentina, Inc. ...................... 80 1,970 Approach Resources, Inc.*.................. 70 1,327 Arena Resources, Inc.*..................... 260 11,674 Arlington Tankers, Ltd. ................... 110 2,461 Atlas America, Inc. ....................... 200 13,912 ATP Oil & Gas Corp.*....................... 220 6,323 Aventine Renewable Energy Holdings, Inc.*.. 260 1,141 Berry Petroleum Co. -- Class A............. 340 16,837 Bill Barrett Corp.*........................ 270 13,886 Bois d'Arc Energy, Inc.*................... 160 3,824 BPZ Resources, Inc.*....................... 530 10,324 Brigham Exploration Co.*................... 390 3,682 Callon Petroleum Co.*...................... 180 3,600 Carrizo Oil & Gas, Inc.*................... 230 14,603 Clayton Williams Energy, Inc.*............. 50 3,159 Clean Energy Fuels Corp.*.................. 90 1,172 Comstock Resources, Inc.*.................. 380 17,286 Concho Resources, Inc.*.................... 200 5,514 Contango Oil & Gas Co.*.................... 110 8,429 Crosstex Energy, Inc. ..................... 320 11,075 CVR Energy, Inc.*.......................... 170 3,660 Delek US Holdings, Inc. ................... 100 1,103 Delta Petroleum Corp.*..................... 570 13,988 Double Hull Tankers, Inc. ................. 180 1,845 Edge Petroleum Corp.*...................... 250 1,305 Encore Acquisition Co.*.................... 460 20,990 Energy Partners, Ltd.*..................... 240 2,916 Evergreen Energy, Inc.*.................... 720 1,058 EXCO Resources, Inc.*...................... 530 11,830 FX Energy, Inc.*........................... 350 1,743 General Maritime Corp. .................... 250 6,532 GeoGlobal Resources, Inc.*................. 280 647 GeoMet, Inc.*.............................. 160 1,080 GMX Resources, Inc.*....................... 120 4,361 Golar LNG, Ltd. ........................... 300 6,018 Goodrich Petroleum Corp.*.................. 160 5,405 Gulfport Energy Corp.*..................... 200 2,318 Harvest Natural Resources, Inc.*........... 300 2,847 International Coal Group, Inc.*............ 1,090 8,676 Knightsbridge Tankers, Ltd. ............... 150 4,329 Mariner Energy, Inc.*...................... 750 20,670 McMoRan Exploration Co.*................... 390 10,694 Meridian Resource Corp.*................... 770 1,632 Nordic American Tanker Shipping, Ltd. ..... 260 8,767 Nova Biosource Fuels, Inc.*................ 270 308 Oilsands Quest, Inc.*...................... 1,200 5,220 Pacific Ethanol, Inc.*..................... 310 1,063 Parallel Petroleum Corp.*.................. 360 7,628 Penn Virginia Corp. ....................... 350 18,375 PetroHawk Energy Corp.*.................... 1,660 39,242 Petroleum Development Corp.*............... 130 9,780 PetroQuest Energy, Inc.*................... 360 7,481 Rentech, Inc.*............................. 1,400 1,764 Rex Energy Corp.*.......................... 80 1,736 Rosetta Resources, Inc.*................... 440 9,588 Ship Finance International, Ltd. .......... 270 8,186 Stone Energy Corp.*........................ 240 14,626 Swift Energy Co.*.......................... 260 13,556 Teekay Tankers, Ltd. ...................... 120 2,422 Toreador Resources Corp.*.................. 130 1,067 TXCO Resources, Inc.*...................... 290 3,706 Uranium Resources, Inc.*................... 450 2,682 USEC, Inc.*................................ 930 4,315 VAALCO Energy, Inc.*....................... 510 3,305 Venoco, Inc.*.............................. 120 1,804 VeraSun Energy Corp.*...................... 440 2,746 Verenium Corp.*............................ 350 1,050 Warren Resources, Inc.*.................... 500 6,140 Whiting Petroleum Corp.*................... 360 27,547 World Fuel Services Corp. ................. 250 6,140 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 526,869 ----------- PAPER & FOREST PRODUCTS 0.2% AbitibiBowater, Inc. ...................... 460 4,540 Buckeye Technologies, Inc.*................ 330 2,848 Deltic Timber Corp. ....................... 90 4,748 Glatfelter................................. 390 5,690 Mercer International, Inc.*................ 270 1,812 Neenah Paper, Inc. ........................ 130 2,987 Schweitzer-Mauduit International, Inc. .... 140 3,098 Wausau Paper Corp. ........................ 380 2,941 ----------- TOTAL PAPER & FOREST PRODUCTS 28,664 ----------- PERSONAL PRODUCTS 0.3% American Oriental Bioengineering, Inc.*.... 480 4,618 Chattem, Inc.*............................. 150 10,482 Elizabeth Arden, Inc.*..................... 210 3,887 Inter Parfums, Inc. ....................... 70 2,027 Mannatech, Inc. ........................... 130 849
See Notes to Financial Statements. SEMI-ANNUAL REPORT 37 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Nu Skin Enterprises, Inc. -- Class A....... 430 $7,710 Prestige Brands Holdings, Inc.*............ 290 2,604 Revlon, Inc. -- Class A*................... 1,690 1,572 Tiens Biotech Group USA, Inc.*............. 30 58 USANA Health Sciences, Inc.*............... 70 1,365 ----------- TOTAL PERSONAL PRODUCTS 35,172 ----------- PHARMACEUTICALS 1.2% Akorn, Inc.*............................... 470 2,115 Alexza Pharmaceuticals, Inc.*.............. 170 1,127 Alpharma, Inc. -- Class A*................. 370 9,106 Auxilium Pharmaceuticals, Inc.*............ 270 8,302 Bentley Pharmaceuticals, Inc.*............. 160 2,464 Biodel, Inc.*.............................. 50 692 BioForm Medical, Inc.*..................... 100 508 BioMimetic Therapeutics, Inc.*............. 90 884 Cadence Pharmaceuticals, Inc.*............. 180 1,181 Caraco Pharmaceutical Laboratories, Ltd.*.. 90 1,483 Cypress Bioscience, Inc.*.................. 320 2,106 Discovery Laboratories, Inc.*.............. 830 2,382 Durect Corp.*.............................. 640 2,906 Javelin Pharmaceuticals, Inc.*............. 370 977 Jazz Pharmaceuticals, Inc.*................ 50 451 KV Pharmaceutical Co. -- Class A*.......... 300 7,332 MAP Pharmaceuticals, Inc.*................. 50 668 Medicines Co.*............................. 450 8,887 Medicis Pharmaceutical Corp. -- Class A.... 480 9,888 Nastech Pharmaceutical Co., Inc.*.......... 230 315 Noven Pharmaceuticals, Inc.*............... 210 1,911 Obagi Medical Products, Inc.*.............. 50 401 Pain Therapeutics, Inc.*................... 310 2,151 Par Pharmaceutical Cos., Inc.*............. 290 4,944 Penwest Pharmaceuticals, Co.*.............. 200 598 Perrigo Co. ............................... 660 27,053 Pozen, Inc.*............................... 220 2,911 Salix Pharmaceuticals, Ltd.*............... 410 2,878 Santarus, Inc.*............................ 440 1,179 Sciele Pharma, Inc.*....................... 300 5,781 Sirtris Pharmaceuticals, Inc.*............. 50 1,117 Somaxon Pharmaceuticals, Inc.*............. 90 415 Sucampo Pharmaceuticals, Inc. -- Class A*.. 40 573 SuperGen, Inc.*............................ 460 1,293 Valeant Pharmaceuticals International*..... 770 10,226 ViroPharma, Inc.*.......................... 600 5,496 Vivus, Inc.*............................... 500 2,835 XenoPort, Inc.*............................ 190 8,128 ----------- TOTAL PHARMACEUTICALS 143,664 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 5.5% Acadia Realty Trust........................ 280 7,179 Agree Realty Corp. ........................ 70 1,865 Alesco Financial, Inc. .................... 530 1,829 Alexander's, Inc.*......................... 20 7,126 Alexandria Real Estate Equities, Inc. ..... 270 28,358 American Campus Communities, Inc. ......... 230 7,022 Anthracite Capital, Inc. .................. 550 4,290 Anworth Mortgage Asset Corp. .............. 650 4,342 Arbor Realty Trust, Inc. .................. 120 2,072 Ashford Hospitality Trust, Inc. ........... 910 5,269 Associated Estates Realty Corp. ........... 130 1,573 BioMed Realty Trust, Inc. ................. 560 14,560 BRT Realty Trust........................... 60 905 Capital Trust, Inc. -- Class A............. 120 3,210 CapLease, Inc. ............................ 370 3,075 CBRE Realty Finance, Inc. ................. 250 970 Cedar Shopping Centers, Inc. .............. 380 4,750 Chimera Investment Corp. .................. 290 4,022 Corporate Office Properties Trust.......... 340 12,682 Cousins Properties, Inc. .................. 350 8,894 Crystal River Capital, Inc. ............... 220 1,815 DCT Industrial Trust, Inc. ................ 1,450 14,500 Deerfield Capital Corp. ................... 570 798 DiamondRock Hospitality Co. ............... 810 10,328 Digital Realty Trust, Inc. ................ 490 18,987 DuPont Fabros Technology, Inc. ............ 300 5,400 EastGroup Properties, Inc. ................ 200 9,542 Education Realty Trust, Inc. .............. 240 3,202 Entertainment Properties Trust............. 240 12,806 Equity Lifestyle Properties, Inc. ......... 170 8,405 Equity One, Inc. .......................... 310 7,657 Extra Space Storage, Inc. ................. 550 9,257 FelCor Lodging Trust, Inc. ................ 540 6,799 First Industrial Realty Trust, Inc. ....... 390 11,782 First Potomac Realty Trust................. 210 3,568 Franklin Street Properties Corp. .......... 510 7,533 Friedman, Billings, Ramsey Group, Inc. .... 1,210 3,013 Getty Realty Corp. ........................ 150 2,717 Glimcher Realty Trust...................... 320 3,840 GMH Communities Trust...................... 270 2,549 Gramercy Capital Corp. .................... 350 6,650 Healthcare Realty Trust, Inc. ............. 440 12,465 Hersha Hospitality Trust................... 350 3,332 Highwoods Properties, Inc. ................ 490 17,170 Home Properties, Inc. ..................... 290 15,245 IMPAC Mortgage Holdings, Inc.*............. 660 779 Inland Real Estate Corp. .................. 500 8,075 Investors Real Estate Trust................ 490 4,998 JER Investors Trust, Inc. ................. 220 1,694 Kite Realty Group Trust.................... 180 2,444 LaSalle Hotel Properties................... 350 11,224 Lexington Corporate Properties Trust....... 530 7,632 LTC Properties, Inc. ...................... 200 5,446 Luminent Mortgage Capital, Inc.*........... 360 86 Maguire Properties, Inc. .................. 320 5,152 Medical Properties Trust, Inc. ............ 560 6,804 MFA Mortgage Investments, Inc. ............ 1,310 9,157 Mid-America Apartment Communities, Inc. ... 220 11,550 Mission West Properties, Inc. ............. 170 2,021 National Health Investors, Inc. ........... 200 6,118 National Retail Properties, Inc. .......... 620 14,204 Nationwide Health Properties, Inc. ........ 820 29,536 Newcastle Investment Corp. ................ 360 3,560 NorthStar Realty Finance Corp. ............ 530 5,496 Omega Healthcare Investors, Inc. .......... 580 10,150 Parkway Properties, Inc. .................. 140 5,552 Pennsylvania Real Estate Investment Trust.. 280 7,050 Post Properties, Inc. ..................... 380 13,946 Potlatch Corp. ............................ 340 15,235 PS Business Parks, Inc. ................... 140 8,014 RAIT Financial Trust....................... 550 4,180 Ramco-Gershenson Properties Trust.......... 160 3,595 Realty Income Corp. ....................... 870 22,890 Redwood Trust, Inc. ....................... 210 6,991 Resource Capital Corp. .................... 190 1,651
See Notes to Financial Statements. SEMI-ANNUAL REPORT 38 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Saul Centers, Inc. ........................ 90 $4,491 Senior Housing Properties Trust............ 820 19,639 Sovran Self Storage, Inc. ................. 190 8,493 Strategic Hotels & Resorts, Inc. .......... 640 9,222 Sun Communities, Inc. ..................... 140 2,723 Sunstone Hotel Investors, Inc. ............ 540 10,087 Tanger Factory Outlet Centers, Inc. ....... 270 10,892 U-Store-It Trust........................... 400 4,828 Universal Health Realty Income Trust....... 100 3,354 Urstadt Biddle Properties, Inc. ........... 180 3,037 Washington Real Estate Investment Trust.... 390 13,857 Winthrop Realty Trust...................... 440 1,914 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 651,120 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1% Consolidated-Tomoka Land Co. .............. 50 2,609 FX Real Estate and Entertainment, Inc.*.... 70 337 Grubb & Ellis Co. ......................... 340 2,087 Meruelo Maddux Properties, Inc.*........... 390 983 Stratus Properties, Inc.*.................. 40 1,116 Tejon Ranch Co.*........................... 100 4,226 Thomas Properties Group, Inc. ............. 200 1,666 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 13,024 ----------- ROAD & RAIL 0.5% Amerco, Inc.*.............................. 90 5,169 Arkansas Best Corp. ....................... 190 7,501 Celadon Group, Inc.*....................... 190 1,955 Dollar Thrifty Automotive Group, Inc.*..... 180 2,374 Genesee & Wyoming, Inc. -- Class A*........ 270 9,634 Heartland Express, Inc. ................... 500 7,735 Knight Transportation, Inc. ............... 490 8,325 Marten Transport, Ltd.*.................... 130 2,119 Old Dominion Freight Line, Inc.*........... 260 7,982 Patriot Transportation Holding, Inc.*...... 10 814 Saia, Inc.*................................ 120 1,657 Universal Truckload Services, Inc.*........ 50 1,048 Werner Enterprises, Inc. .................. 400 7,780 ----------- TOTAL ROAD & RAIL 64,093 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.9% Actel Corp.*............................... 220 3,626 Advanced Analogic Technologies, Inc.*...... 330 2,284 Advanced Energy Industries, Inc.*.......... 310 4,340 Amkor Technology, Inc.*.................... 900 8,595 Anadigics, Inc.*........................... 540 6,026 Applied Micro Circuits Corp.*.............. 560 4,906 Asyst Technologies, Inc.*.................. 420 1,504 Atheros Communications, Inc.*.............. 510 13,576 ATMI, Inc.*................................ 300 8,832 AuthenTec, Inc.*........................... 70 939 Axcelis Technologies, Inc.*................ 880 4,752 Brooks Automation, Inc.*................... 560 5,802 Cabot Microelectronics Corp.*.............. 200 6,810 Cavium Networks, Inc.*..................... 60 1,233 Cirrus Logic, Inc.*........................ 760 5,434 Cohu, Inc. ................................ 200 3,474 Conexant Systems, Inc.*.................... 4,230 2,094 Credence Systems Corp.*.................... 870 905 Cymer, Inc.*............................... 260 6,757 Diodes, Inc.*.............................. 260 7,030 DSP Group, Inc.*........................... 260 3,414 Eagle Test Systems, Inc.*.................. 110 1,328 Entegris, Inc.*............................ 1,000 7,540 Entropic Communications, Inc.*............. 80 342 Exar Corp.*................................ 350 2,950 FEI Co.*................................... 310 6,780 FormFactor, Inc.*.......................... 410 7,901 Hittite Microwave Corp.*................... 140 5,558 IXYS Corp.*................................ 210 1,506 Kulicke & Soffa Industries, Inc.*.......... 460 3,031 Lattice Semiconductor Corp.*............... 990 3,356 LTX Corp.*................................. 540 1,566 Mattson Technology, Inc.*.................. 430 2,085 Micrel, Inc. .............................. 440 4,321 Microsemi Corp.*........................... 660 16,170 Microtune, Inc.*........................... 460 1,624 MIPS Technologies, Inc.*................... 370 1,680 MKS Instruments, Inc.*..................... 390 8,911 Monolithic Power Systems, Inc.*............ 220 5,038 Netlogic Microsystems, Inc.*............... 140 4,591 OmniVision Technologies, Inc.*............. 470 7,539 ON Semiconductor Corp.*.................... 2,750 20,542 PDF Solutions, Inc.*....................... 200 956 Pericom Semiconductor Corp.*............... 220 3,749 Photronics, Inc.*.......................... 360 3,816 PLX Technology, Inc.*...................... 250 2,157 PMC-Sierra, Inc.*.......................... 1,840 14,297 RF Micro Devices, Inc.*.................... 2,280 7,684 Rubicon Technology, Inc.*.................. 60 1,324 Rudolph Technologies, Inc.*................ 250 2,540 Semitool, Inc.*............................ 190 1,678 Semtech Corp.*............................. 540 8,769 Sigma Designs, Inc.*....................... 250 4,470 Silicon Image, Inc.*....................... 760 4,537 Silicon Storage Technology, Inc.*.......... 780 2,395 Sirf Technology Holdings, Inc.*............ 520 3,073 Skyworks Solutions, Inc.*.................. 1,380 11,992 Spansion, Inc.*............................ 870 2,871 Standard Microsystems Corp.*............... 200 5,930 Supertex, Inc.*............................ 90 1,931 Techwell, Inc.*............................ 130 1,365 Tessera Technologies, Inc.*................ 410 8,298 Trident Microsystems, Inc.*................ 520 2,257 TriQuint Semiconductor, Inc.*.............. 1,200 7,908 Ultra Clean Holdings, Inc.*................ 160 1,710 Ultratech, Inc.*........................... 200 2,852 Veeco Instruments, Inc.*................... 270 5,084 Volterra Semiconductor Corp.*.............. 180 2,711 Zoran Corp.*............................... 430 5,659 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 338,705 ----------- SOFTWARE 3.5% ACI Worldwide, Inc.*....................... 320 7,072 Actuate Corp.*............................. 520 2,116 Advent Software, Inc.*..................... 150 5,979 Ansoft Corp.*.............................. 150 4,974 Ansys, Inc.*............................... 670 26,954 ArcSight, Inc.*............................ 60 461 Blackbaud, Inc. ........................... 380 8,926 Blackboard, Inc.*.......................... 250 8,635 Borland Software Corp.*.................... 630 1,115 Bottomline Technologies, Inc.*............. 190 2,024 Commvault Systems, Inc.*................... 310 3,813
See Notes to Financial Statements. SEMI-ANNUAL REPORT 39 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Concur Technologies, Inc.*................. 370 $12,262 Deltek, Inc.*.............................. 80 982 Double-Take Software, Inc.*................ 70 1,042 Epicor Software Corp.*..................... 500 4,000 EPIQ Systems, Inc.*........................ 270 4,169 FalconStor Software, Inc.*................. 280 2,282 Glu Mobile, Inc.*.......................... 60 281 Guidance Software, Inc.*................... 30 305 i2 Technologies, Inc.*..................... 130 1,365 Informatica Corp.*......................... 750 11,970 Interactive Intelligence, Inc.*............ 110 1,396 Intervoice, Inc.*.......................... 330 2,069 Jack Henry & Associates, Inc. ............. 680 17,871 JDA Software Group, Inc.*.................. 220 4,158 Lawson Software, Inc.*..................... 1,060 8,469 Macrovision Solutions Corp.*............... 460 7,259 Magma Design Automation, Inc.*............. 350 3,266 Manhattan Associates, Inc.*................ 220 5,722 Mentor Graphics Corp.*..................... 770 7,754 MICROS Systems, Inc.*...................... 700 24,955 MicroStrategy, Inc.*....................... 80 7,098 Midway Games, Inc.*........................ 200 514 Monotype Imaging Holdings, Inc.*........... 90 1,319 MSC.Software Corp.*........................ 380 4,628 Net 1 UEPS Technologies, Inc.*............. 360 8,438 NetSuite, Inc.*............................ 60 1,184 Nuance Communications, Inc.*............... 1,290 26,161 OpenTV Corp. -- Class A*................... 810 915 Parametric Technology Corp.*............... 990 17,256 Pegasystems, Inc. ......................... 120 1,268 Progress Software Corp.*................... 350 10,581 PROS Holdings, Inc.*....................... 70 818 QAD, Inc. ................................. 120 912 Quality Systems, Inc. ..................... 150 4,818 Quest Software, Inc.*...................... 590 7,859 Radiant Systems, Inc.*..................... 230 3,103 Renaissance Learning, Inc. ................ 70 984 Secure Computing Corp.*.................... 400 2,648 Smith Micro Software, Inc.*................ 260 2,244 Solera Holdings, Inc.*..................... 230 5,936 Sonic Solutions, Inc.*..................... 190 1,746 Sourcefire, Inc.*.......................... 60 411 SourceForge, Inc.*......................... 580 1,038 SPSS, Inc.*................................ 160 6,758 SuccessFactors, Inc.*...................... 100 1,104 Sybase, Inc.*.............................. 790 23,242 Symyx Technologies, Inc.*.................. 290 2,178 Synchronoss Technologies, Inc.*............ 160 3,339 Take-Two Interactive Software, Inc.*....... 660 17,319 Taleo Corp.*............................... 140 2,730 THQ, Inc.*................................. 580 12,342 TIBCO Software, Inc.*...................... 1,640 12,579 TiVo, Inc.*................................ 840 6,913 Tyler Technologies, Inc.*.................. 340 4,920 Ultimate Software Group, Inc.*............. 210 6,886 Unica Corp.*............................... 80 559 Vasco Data Security International, Inc.*... 230 2,321 Veraz Networks, Inc.*...................... 80 206 Wind River Systems, Inc.*.................. 640 5,274 ----------- TOTAL SOFTWARE 414,195 ----------- SPECIALTY RETAIL 2.2% Aaron Rents, Inc. -- Class B............... 400 9,960 AC Moore Arts & Crafts, Inc.*.............. 170 1,124 Aeropostale, Inc.*......................... 580 18,438 Asbury Automotive Group, Inc. ............. 220 3,663 Bebe Stores, Inc. ......................... 220 2,198 Big 5 Sporting Goods Corp. ................ 200 1,838 Blockbuster, Inc. -- Class A*.............. 1,650 4,818 Books-A-Million, Inc. ..................... 120 972 Borders Group, Inc. ....................... 500 3,150 Brown Shoe Co., Inc. ...................... 380 6,338 Buckle, Inc. .............................. 120 5,830 Build-A-Bear Workshop, Inc.*............... 140 1,526 Cabela's, Inc.*............................ 330 4,465 Cache, Inc.*............................... 90 1,103 Casual Male Retail Group, Inc.*............ 310 1,339 Cato Corp. -- Class A...................... 260 4,485 Charlotte Russe Holding, Inc.*............. 220 3,494 Charming Shoppes, Inc.*.................... 1,010 5,212 Children's Place Retail Stores, Inc.*...... 190 4,417 Christopher & Banks Corp. ................. 310 3,673 Citi Trends, Inc.*......................... 120 2,537 Collective Brands, Inc.*................... 560 6,927 Conn's, Inc.*.............................. 100 1,763 CSK Auto Corp.*............................ 380 4,533 Dress Barn, Inc.*.......................... 410 5,519 DSW, Inc. -- Class A*...................... 140 2,146 Eddie Bauer Holdings, Inc.*................ 260 1,035 Finish Line, Inc. -- Class A............... 370 2,431 Gander Mountain Co.*....................... 40 196 Genesco, Inc.*............................. 200 4,432 Group 1 Automotive, Inc. .................. 200 5,336 Gymboree Corp.*............................ 250 10,805 Haverty Furniture Cos., Inc. .............. 160 1,461 hhgregg, Inc.*............................. 80 822 Hibbett Sports, Inc.*...................... 270 4,930 Hot Topic, Inc.*........................... 380 2,018 J. Crew Group, Inc.*....................... 340 16,150 Jo-Ann Stores, Inc.*....................... 210 3,977 Jos. A. Bank Clothiers, Inc.*.............. 160 3,906 Lithia Motors, Inc. -- Class A............. 140 1,260 Men's Wearhouse, Inc. ..................... 470 12,516 Midas, Inc.*............................... 120 1,864 Monro Muffler, Inc. ....................... 140 2,310 New York & Co., Inc.*...................... 190 1,206 NexCen Brands, Inc.*....................... 390 1,193 Pacific Sunwear of California, Inc.*....... 600 8,046 PEP Boys-Manny Moe & Jack.................. 340 3,033 Pier 1 Imports, Inc.*...................... 760 5,928 Rent-A-Center, Inc.*....................... 570 12,272 Sally Beauty Holdings, Inc.*............... 810 4,909 Select Comfort Corp.*...................... 400 1,208 Shoe Carnival, Inc.*....................... 80 1,118 Sonic Automotive, Inc. -- Class A.......... 250 5,072 Stage Stores, Inc. ........................ 370 5,824 Stein Mart, Inc. .......................... 230 1,226 Talbots, Inc. ............................. 200 1,606 Tween Brands, Inc.*........................ 210 3,990 Ulta Salon Cosmetics & Fragrance, Inc.*.... 70 990 West Marine, Inc.*......................... 130 650 Wet Seal, Inc.*............................ 730 2,533
See Notes to Financial Statements. SEMI-ANNUAL REPORT 40 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Zale Corp.*................................ 380 $7,874 Zumiez, Inc.*.............................. 150 3,142 ----------- TOTAL SPECIALTY RETAIL 258,737 ----------- TEXTILES, APPAREL & LUXURY GOODS 1.2% Carter's, Inc.*............................ 500 7,070 Cherokee, Inc. ............................ 60 1,740 Columbia Sportswear Co. ................... 120 5,035 Deckers Outdoor Corp.*..................... 110 15,188 FGX International Holdings, Ltd.*.......... 100 1,305 Fossil, Inc.*.............................. 380 13,600 G-III Apparel Group, Ltd.*................. 110 1,622 Heelys, Inc.*.............................. 60 261 Iconix Brand Group, Inc.*.................. 440 7,005 K-Swiss, Inc. -- Class A................... 220 3,223 Kenneth Cole Productions, Inc. -- Class A.. 90 1,732 Lululemon Athletica, Inc.*................. 110 3,407 Maidenform Brands, Inc.*................... 200 2,980 Movado Group, Inc. ........................ 150 3,276 Oxford Industries, Inc. ................... 120 3,335 Perry Ellis International, Inc.*........... 100 2,284 Quiksilver, Inc.*.......................... 1,070 10,411 Skechers U.S.A., Inc. -- Class A*.......... 180 4,257 Steven Madden, Ltd.*....................... 180 3,404 Timberland Co. -- Class A*................. 410 5,986 True Religion Apparel, Inc.*............... 120 2,203 Under Armour, Inc. -- Class A*............. 210 6,999 UniFirst Corp. ............................ 120 5,617 Volcom, Inc.*.............................. 130 2,469 Warnaco Group, Inc.*....................... 400 18,456 Weyco Group, Inc. ......................... 60 1,639 Wolverine World Wide, Inc. ................ 430 12,358 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 146,862 ----------- THRIFTS & MORTGAGE FINANCE 1.1% Abington Bancorp, Inc. .................... 90 941 Anchor BanCorp Wisconsin, Inc. ............ 170 2,582 Bank Mutual Corp. ......................... 430 4,812 BankAtlantic Bancorp, Inc. -- Class A...... 360 1,109 BankFinancial Corp. ....................... 200 3,208 BankUnited Financial Corp. -- Class A...... 280 1,100 Beneficial Mutual Bancorp, Inc.*........... 310 3,165 Berkshire Hills Bancorp, Inc. ............. 90 2,303 Brookline Bancorp, Inc. ................... 500 5,400 Centerline Holding Co. .................... 440 1,500 Clayton Holdings, Inc.*.................... 100 578 Clifton Savings Bancorp, Inc. ............. 100 1,000 Corus Bankshares, Inc. .................... 340 2,492 Dime Community Bancshares.................. 210 3,921 Downey Financial Corp. .................... 180 2,545 Federal Agricultural Mortgage Corp. ....... 90 2,880 First Busey Corp. ......................... 220 4,363 First Financial Holdings, Inc. ............ 100 2,401 First Niagara Financial Group, Inc. ....... 910 13,131 First Place Financial Corp. ............... 140 1,750 FirstFed Financial Corp.*.................. 120 1,834 Flagstar Bancorp, Inc. .................... 380 2,326 Flushing Financial Corp. .................. 180 3,514 Franklin Bank Corp.*....................... 220 341 Imperial Capital Bancorp, Inc. ............ 50 754 K-Fed Bancorp.............................. 40 446 Kearny Financial Corp. .................... 180 1,958 NASB Financial, Inc. ...................... 30 854 NewAlliance Bancshares, Inc. .............. 980 13,191 Northwest Bancorp, Inc. ................... 160 4,128 Ocwen Financial Corp.*..................... 310 1,531 Oritani Financial Corp.*................... 100 1,517 PFF Bancorp, Inc. ......................... 190 718 Provident Financial Services, Inc. ........ 530 8,178 Provident New York Bancorp................. 350 4,676 Rockville Financial, Inc. ................. 80 1,086 Roma Financial Corp. ...................... 90 1,397 TierOne Corp. ............................. 160 1,434 Triad Guaranty, Inc.*...................... 100 228 TrustCo Bank Corp. ........................ 650 5,674 United Community Financial Corp. .......... 230 1,888 ViewPoint Financial Group.................. 100 1,625 Wauwatosa Holdings, Inc.*.................. 80 975 Westfield Financial, Inc. ................. 90 875 WSFS Financial Corp. ...................... 50 2,541 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 124,870 ----------- TOBACCO 0.2% Alliance One International, Inc.*.......... 820 5,043 Universal Corp. ........................... 230 14,764 Vector Group, Ltd. ........................ 270 4,652 ----------- TOTAL TOBACCO 24,459 ----------- TRADING COMPANIES & DISTRIBUTORS 0.6% Applied Industrial Technologies, Inc. ..... 370 8,939 Beacon Roofing Supply, Inc.*............... 380 4,047 BlueLinx Holdings, Inc. ................... 100 518 Electro Rent Corp. ........................ 150 2,027 H&E Equipment Services, Inc.*.............. 150 1,967 Houston Wire & Cable Co. .................. 130 2,432 Interline Brands, Inc.*.................... 240 4,644 Kaman Corp. -- Class A..................... 210 5,691 Lawson Products, Inc. ..................... 40 1,015 Nuco2, Inc.*............................... 130 3,596 Rush Enterprises, Inc.*.................... 290 4,675 TAL International Group, Inc. ............. 140 3,389 Textainer Group Holdings, Ltd. ............ 60 1,026 UAP Holding Corp. ......................... 440 17,120 Watsco, Inc. .............................. 200 9,074 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 70,160 ----------- WATER UTILITIES 0.2% American States Water Co. ................. 150 5,253 Cadiz, Inc.*............................... 100 1,896 California Water Service Group............. 170 6,579 Consolidated Water Co., Ltd. .............. 120 2,844 SJW Corp. ................................. 130 3,909 Southwest Water Co. ....................... 210 2,339 ----------- TOTAL WATER UTILITIES 22,820 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.2% Centennial Communications Corp.*........... 210 1,273 FiberTower Corp.*.......................... 890 1,353 ICO Global Communications Holdings, Ltd.*.. 890 3,320 iPCS, Inc. ................................ 150 4,563 Rural Cellular Corp.*...................... 110 4,888 Syniverse Holdings, Inc.*.................. 240 3,770
See Notes to Financial Statements. SEMI-ANNUAL REPORT 41 RYDEX 2x RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ---------------------------------------------------------------------- COMMON STOCKS (CONTINUED) USA Mobility, Inc.*........................ 200 $1,428 Virgin Mobile USA, Inc. -- Class A*........ 240 996 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 21,591 ----------- TOTAL COMMON STOCKS (Cost $10,413,954) 10,084,380 ----------- FACE MARKET AMOUNT VALUE ---------------------------------------------------------------------- REPURCHASE AGREEMENTS 6.8% State Street Bank & Trust Co., 1.850%, dated 04/30/08, at 1.850% to be repurchased at $804,041 on 05/01/08 collateralized by $815,000 FHLB at 5.700% due 04/03/28 with a value of $822,131................................ 804,000 $804,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $804,000) 804,000 ----------- UNITED STATES TREASURY BILLS 4.7% United States Treasury Bill 0.757%, due 05/01/08(a)+............................ 550,000 550,000 ----------- TOTAL UNITED STATES TREASURY BILLS (Cost $550,000) 550,000 ----------- TOTAL INVESTMENTS 97.3% (Cost $11,767,954) 11,438,380 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--2.7% 305,618 ----------- NET ASSETS--100.0% $11,743,998 ---------------------------------------------------------------------- UNREALIZED CONTRACTS GAIN ---------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED June 2008 Russell 2000(R) Index Mini Futures Contracts (Aggregate Market Value of Contracts $6,385,750).......... 89 $137,605 ----------- UNITS ---------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED July 2008 Russell 2000(R) Index Swap, Terminating 07/01/08* (Notional Market Value $7,216,480)....................... 10,076 $331,089 ----------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Russell 2000(R) Index +/- financing at a variable rate. (a) Zero coupon bond--Interest rate represents current yield to maturity. + Security or portions of the security was pledged as collateral for a swap agreement. FHLB--Federal Home Loan Bank See Notes to Financial Statements. SEMI-ANNUAL REPORT 42 RYDEX INVERSE 2X RUSSELL 2000(R) ETF SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE --------------------------------------------------------------------------- REPURCHASE AGREEMENTS 85.2% State Street Bank & Trust Co., 1.850%, dated 04/30/08, to be repurchased at $17,774,913 on 05/01/08 collateralized by $17,975,000 FHLB at 5.70% due 04/03/08 with a value of $18,132,281.. 17,774,000 $17,774,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $17,774,000) 17,774,000 ----------- UNITED STATES TREASURY BILLS 4.8% United States Treasury Bill 0.757%, due 05/01/08(a)+..................... 1,000,000 1,000,000 ----------- TOTAL UNITED STATES TREASURY BILLS (Cost $1,000,000) 1,000,000 ----------- TOTAL INVESTMENTS 100.0% (Cost $18,774,000) 18,774,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--10.0% 2,091,191 ----------- NET ASSETS--100.0% $20,865,191 ---------------------------------------------------------------------------
UNREALIZED CONTRACTS LOSS ------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT June 2008 Russell 2000 Index Mini Futures Contracts (Aggregate Market Value of Contracts $5,453,000)..................................... 76 $(171,398) ---------
UNITS ------------------------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS SOLD SHORT July 2008 Russell 2000(R) Index Swap, Terminating 07/01/08* (Notional Market Value $7,178,000)..................................... 10,023 $(551,849) ----------- May 2008 Russell 2000(R) Index Swap, Terminating 05/20/08* (Notional Market Value $28,864,238)... 40,303 (1,346,905) ----------- (Total Notional Market Value $36,042,238) $(1,898,754) ------------------------------------------------------------------------
* Price return based on S&P Russell 2000(R) Index +/- financing at a variable rate. (a) Zero coupon bond--Interest rate represents current yield to maturity. + Security or portions of the security was pledged as collateral for a swap agreement sold short. FHLB--Federal Home Loan Bank See Notes to Financial Statements. SEMI-ANNUAL REPORT 43 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX 2X RYDEX RYDEX 2X S&P 500 INVERSE 2X S&P MIDCAP ETF S&P 500 ETF 400 ETF ----------- ----------- ----------- ASSETS Investment Securities at Market Value*....... $29,760,380 $ 6,548,947 $ 2,824,167 Repurchase Agreements* (Note 2).............. 3,597,000 42,844,000 412,000 Cash......................................... 848 922 214 Segregated Cash for Swaps.................... 1,466,000 8,565,000 100,000 Margin Deposit for Futures Contracts......... 1,263,600 518,400 92,800 Receivables: Dividends.................................. 21,755 -- 1,563 Interest................................... 185 2,202 21 Fund Shares Sold........................... 3,151,657 -- -- Equity Index Swap Settlement (Note 2)...... -- 407,614 56,191 Variation Margin on Futures Contracts (Note 2)...................................... -- 47,160 -- ----------- ----------- ----------- TOTAL ASSETS............................ 39,261,425 58,934,245 3,486,956 ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased...................... 4,978,615 -- 199,853 Equity Index Swap Settlement (Note 2)...... 57,967 -- -- Variation Margin on Futures Contracts (Note 2)...................................... 114,953 -- 5,800 Accrued Management Fees.................... 16,540 34,689 1,795 Accrued Trustee Fees....................... 271 797 32 ----------- ----------- ----------- TOTAL LIABILITIES....................... 5,168,346 35,486 207,480 ----------- ----------- ----------- NET ASSETS................................... $34,093,079 $58,898,759 $ 3,279,476 =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.............................. $34,504,474 $61,458,864 $ 5,622,478 Undistributed Net Investment Income.......... 19,235 84,772 1,687 Accumulated Net Realized Gain/(Loss) on Investment Securities, Futures and Swaps... (1,516,818) (2,731,338) (2,530,777) Net Unrealized Appreciation/(Depreciation) on Investment Securities, Futures and Swaps... 1,086,188 86,461 186,088 ----------- ----------- ----------- NET ASSETS................................... $34,093,079 $58,898,759 $ 3,279,476 =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.................. 550,000 700,000 50,000 =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................. $ 61.99 $ 84.14 $ 65.59 =========== =========== =========== *Total Cost of Investments................... $33,284,140 $49,392,947 $ 3,279,790 =========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 44 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX INVERSE RYDEX 2X RYDEX INVERSE 2X S&P MIDCAP RUSSELL 2X RUSSELL 400 ETF 2000(R) ETF 2000(R) ETF ------------- ----------- ------------- ASSETS Investment Securities at Market Value*............ $ -- $10,634,380 $ 1,000,000 Repurchase Agreements* (Note 2)................... 6,727,000 804,000 17,774,000 Cash.............................................. 74 495 750 Segregated Cash for Swaps......................... 1,285,000 140,000 3,572,000 Margin Deposit for Futures Contracts.............. 35,200 373,800 319,200 Receivables: Dividends....................................... -- 5,425 -- Interest........................................ 346 41 913 Equity Index Swap Settlement (Note 2)........... -- 322,436 -- Variation Margin on Futures Contracts (Note 2).. 2,200 -- 29,640 ---------- ----------- ----------- TOTAL ASSETS................................. 8,049,820 12,280,577 22,696,503 ---------- ----------- ----------- LIABILITIES Payables: Investments Purchased........................... -- 495,124 -- Equity Index Swap Settlement (Note 2)........... 246,876 -- 1,816,781 Variation Margin on Futures Contracts (Note 2).. -- 34,710 -- Accrued Management Fees......................... 4,714 6,627 14,067 Accrued Trustee Fees............................ 157 118 464 ---------- ----------- ----------- TOTAL LIABILITIES............................ 251,747 536,579 1,831,312 ---------- ----------- ----------- NET ASSETS........................................ $7,798,073 $11,743,998 $20,865,191 ========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital................................... $5,656,548 $14,088,507 $20,848,655 Undistributed Net Investment Income............... 10,489 8,628 37,923 Accumulated Net Realized Gain/(Loss) on Investment Securities, Futures and Swaps................... 2,465,460 (2,492,257) 2,048,765 Net Unrealized Appreciation/(Depreciation) on Investment Securities, Futures and Swaps........ (334,424) 139,120 (2,070,152) ---------- ----------- ----------- NET ASSETS........................................ $7,798,073 $11,743,998 $20,865,191 ========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................... 100,000 200,000 250,000 ========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................................. $ 77.98 $ 58.72 $ 83.46 ========== =========== =========== *Total Cost of Investments........................ $6,727,000 $11,767,954 $18,774,000 ========== =========== ===========
See Notes to Financial Statements. SEMI-ANNUAL REPORT 45 STATEMENTS OF OPERATIONS For the Period Ended April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE RYDEX 2X S&P 500 2X S&P 500 S&P MIDCAP ETF* ETF* 400 ETF* ----------- ------------- ----------- INVESTMENT INCOME Dividends....................................... $ 106,436 $ -- $ 34,930 Interest........................................ 31,410 396,345 17,884 ----------- ----------- ----------- Total Income................................. 137,846 396,345 52,814 ----------- ----------- ----------- EXPENSES Management Fee.................................. 46,318 109,541 21,212 Trustee Fee..................................... 443 1,048 203 ----------- ----------- ----------- Total Expenses............................... 46,761 110,589 21,415 ----------- ----------- ----------- Net Investment Income............................. 91,085 285,756 31,399 ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain/(Loss) From: Investment Securities........................... (476,928) -- (904,043) Futures Contracts............................... (522,815) 1,051,533 (107,458) Swap Contracts.................................. (517,075) (3,782,871) (1,519,276) ----------- ----------- ----------- Net Realized Loss............................ (1,516,818) (2,731,338) (2,530,777) Net Change in Unrealized Appreciation/(Depreciation) On: Investment Securities........................... 73,240 -- (43,623) Futures Contracts............................... 1,070,403 (317,848) 169,652 Swap Contracts.................................. (57,455) 404,309 60,059 ----------- ----------- ----------- Net Change in Unrealized Appreciation on Investments..................................... 1,086,188 86,461 186,088 ----------- ----------- ----------- Net Realized and Unrealized Loss on Investments... (430,630) (2,644,877) (2,344,689) ----------- ----------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ (339,545) $(2,359,121) $(2,313,290) =========== =========== ===========
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. SEMI-ANNUAL REPORT 46 STATEMENTS OF OPERATIONS For the Period Ended April 30, 2008 (Unaudited) --------------------------------------------------------------------------------
RYDEX INVERSE RYDEX 2X RYDEX INVERSE 2X S&P MIDCAP RUSSELL 2000(R) 2X RUSSELL 400 ETF* ETF* 2000(R) ETF* ------------- --------------- ------------- INVESTMENT INCOME Dividends..................................... $ -- $ 54,259 $ -- Interest...................................... 170,682 24,677 268,283 Foreign Taxes Withheld........................ -- (16) -- ---------- ----------- ----------- Total Income............................... 170,682 78,920 268,283 ---------- ----------- ----------- EXPENSES Management Fee................................ 36,304 29,863 68,232 Trustee Fees.................................. 348 285 653 ---------- ----------- ----------- Total Expenses............................. 36,652 30,148 68,885 ---------- ----------- ----------- Net Investment Income........................... 134,030 48,772 199,398 ---------- ----------- ----------- REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net Realized Gain/(Loss) From: Investment Securities......................... -- (587,153) -- Futures Contracts............................. 1,294,033 (227,579) 214,480 Swap Contracts................................ 1,171,427 (1,677,525) 1,834,285 ---------- ----------- ----------- Net Realized Gain/(Loss)................... 2,465,460 (2,492,257) 2,048,765 Net Change in Unrealized Appreciation/(Depreciation) On: Investment Securities......................... -- (329,574) -- Futures Contracts............................. (39,508) 137,605 (171,398) Swap Contracts................................ (294,916) 331,089 (1,898,754) ---------- ----------- ----------- Net change in Unrealized Appreciation/(Depreciation) on Investments.... (334,424) 139,120 (2,070,152) ---------- ----------- ----------- Net Realized and Unrealized Gain/(Loss) on Investments................................... 2,131,036 (2,353,137) (21,387) ---------- ----------- ----------- NET INCREASE/DECREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $2,265,066 $(2,304,365) $ 178,011 ========== =========== ===========
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. SEMI-ANNUAL REPORT 47 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P 500 ETF S&P 500 ETF ----------------- ----------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 5, 2007* NOVEMBER 5, 2007* THROUGH THROUGH APRIL 30, 2008 APRIL 30, 2008 (UNAUDITED) (UNAUDITED) ----------------- ----------------- OPERATIONS Net Investment Income.............................. $ 91,085 $ 285,756 Net Realized Loss.................................. (1,516,818) (2,731,338) Net Change in Unrealized Appreciation on Investments..................................... 1,086,188 86,461 ----------- ----------- Net Decrease in Net Assets Resulting From Operations...................................... (339,545) (2,359,121) ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.............................. (71,850) (200,984) ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.......................... 34,504,474 61,458,864 Value of Shares Reinvested......................... -- -- Value of Shares Repurchased........................ -- -- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions.................................... 34,504,474 61,458,864 ----------- ----------- Increase in Net Assets.......................... 34,093,079 58,898,759 NET ASSETS--BEGINNING OF PERIOD...................... -- -- ----------- ----------- NET ASSETS--END OF PERIOD(1)......................... $34,093,079 $58,898,759 =========== =========== (1) Including Undistributed Net Investment Income.... $ 19,235 $ 84,772 =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold........................................ 550,000 700,000 Shares Reinvested.................................. -- -- Shares Repurchased................................. -- -- Shares Outstanding, Beginning of Period............ -- -- ----------- ----------- Shares Outstanding, End of Period.................. 550,000 700,000 =========== ===========
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. SEMI-ANNUAL REPORT 48 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P MIDCAP S&P MIDCAP 400 ETF 400 ETF ----------------- ----------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 5, 2007* NOVEMBER 5, 2007* THROUGH THROUGH APRIL 30, 2008 APRIL 30, 2008 (UNAUDITED) (UNAUDITED) ----------------- ----------------- OPERATIONS Net Investment Income.............................. $ 31,399 $ 134,030 Net Realized Gain/(Loss)........................... (2,530,777) 2,465,460 Net Change in Unrealized Appreciation/(Depreciation) on Investments...... 186,088 (334,424) ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations................................. (2,313,290) 2,265,066 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.............................. (29,712) (123,541) ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.......................... 11,250,000 15,406,205 Value of Shares Reinvested......................... -- -- Value of Shares Repurchased........................ (5,627,522) (9,897,697) ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions.................................... 5,622,478 5,508,508 ----------- ----------- VOLUNTARY CONTRIBUTION FROM ADVISOR (Note 3)......... -- 148,040 ----------- ----------- Increase in Net Assets.......................... 3,279,476 7,798,073 NET ASSETS--BEGINNING OF PERIOD...................... -- -- ----------- ----------- NET ASSETS--END OF PERIOD(1)......................... $ 3,279,476 $ 7,798,073 =========== =========== (1) Including Undistributed Net Investment Income.... $ 1,687 $ 10,489 =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold........................................ 150,000 200,000 Shares Reinvested.................................. -- -- Shares Repurchased................................. (100,000) (100,000) Shares Outstanding, Beginning of Period............ -- -- ----------- ----------- Shares Outstanding, End of Period.................. 50,000 100,000 =========== ===========
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. SEMI-ANNUAL REPORT 49 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X RUSSELL 2000(R) ETF RUSSELL 2000(R) ETF ------------------- ------------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 5, 2007* NOVEMBER 5, 2007* THROUGH THROUGH APRIL 30, 2008 APRIL 30, 2008 (UNAUDITED) (UNAUDITED) ------------------- ------------------- OPERATIONS Net Investment Income.............................. $ 48,772 $ 199,398 Net Realized Gain/(Loss)........................... (2,492,257) 2,048,765 Net Change in Unrealized Appreciation/(Depreciation) on Investments...... 139,120 (2,070,152) ----------- ----------- Net Increase/(Decrease) in Net Assets Resulting From Operations................................. (2,304,365) 178,011 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM Net Investment Income.............................. (40,144) (161,475) ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold.......................... 16,906,096 29,402,741 Value of Shares Reinvested......................... -- -- Value of Shares Repurchased........................ (2,817,589) (8,554,086) ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions.................................... 14,088,507 20,848,655 ----------- ----------- Increase in Net Assets.......................... 11,743,998 20,865,191 NET ASSETS--BEGINNING OF PERIOD...................... -- -- ----------- ----------- NET ASSETS--END OF PERIOD(1)......................... $11,743,998 $20,865,191 =========== =========== (1) Including Undistributed Net Investment Income.... $ 8,628 $ 37,923 =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold........................................ 250,000 350,000 Shares Reinvested.................................. -- -- Shares Repurchased................................. (50,000) (100,000) Shares Outstanding, Beginning of Period............ -- -- ----------- ----------- Shares Outstanding, End of Period.................. 200,000 250,000 =========== ===========
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. SEMI-ANNUAL REPORT 50 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX INVERSE RYDEX 2X 2X S&P 500 ETF S&P 500 ETF --------------- --------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 5, NOVEMBER 5, 2007* 2007* THROUGH THROUGH APRIL 30, 2008 APRIL 30, 2008 (UNAUDITED) (UNAUDITED) --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............. $75.00 $75.00 ------- ------- Net Investment Income**............................. 0.41 0.77 Net Realized and Unrealized Gain/(Loss) on Investments***.................................... (13.04) 8.91 ------- ------- TOTAL FROM INVESTMENT OPERATIONS.................... (12.63) 9.68 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (0.38) (0.54) ------- ------- NET ASSET VALUE AT END OF PERIOD.................... $61.99 $84.14 ======= ======= TOTAL RETURN****.................................... (16.85)% 12.92% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)......... $34,093 $58,899 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................ 0.70%***** 0.70%***** Net Investment Income............................... 1.37%***** 1.82%***** Portfolio Turnover Ratio+........................... 14% --%
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** The amounts shown at this caption for a share outstanding may not accord with the change in aggregate gains and losses on investments for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund. **** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. ***** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 51 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX 2X S&P RYDEX INVERSE 2X MIDCAP 400 ETF S&P MIDCAP 400 ETF ----------------- ------------------ FOR THE PERIOD FOR THE PERIOD NOVEMBER 5, 2007* NOVEMBER 5, 2007* THROUGH THROUGH APRIL 30, 2008 APRIL 30, 2008 (UNAUDITED) (UNAUDITED) ----------------- ------------------ PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........... $75.00 $75.00 ------ ------ Net Investment Income**.......................... 0.33 1.06 Net Realized and Unrealized Gain/(Loss) on Investments***................................. (9.41) 1.46 ------ ------ TOTAL FROM INVESTMENT OPERATIONS................. (9.08) 2.52 ------ ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................ (0.33) (1.02) ------ ------ VOLUNTARY CONTRIBUTION FROM ADVISOR (Note 3)..... -- 1.48 ------ ------ NET ASSET VALUE AT END OF PERIOD................. $65.59 $77.98 ====== ====== TOTAL RETURN****................................. (12.06)% 5.20%(1) RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)...... $3,279 $7,798 RATIO TO AVERAGE NET ASSETS OF: Expenses......................................... 0.70%***** 0.70%***** Net Investment Income............................ 1.03%***** 2.57%***** Portfolio Turnover Ratio+........................ 98% --%
(1) If the Advisor had not made a voluntary capital contribution to the Fund, the total return would have been 3.21%. * The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** The amounts shown at this caption for a share outstanding may not accord with the change in aggregate gains and losses on investments for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund. **** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. ***** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 52 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X RUSSELL 2000(R) ETF RUSSELL 2000(R) ETF ------------------- ------------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 5, 2007* NOVEMBER 5, 2007* THROUGH THROUGH APRIL 30, 2008 APRIL 30, 2008 (UNAUDITED) (UNAUDITED) ------------------- ------------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.............. $75.00 $75.00 ------- ------- Net Investment Income**............................. 0.34 0.87 Net Realized and Unrealized Gain/(Loss) on Investments***.................................... (16.30) 8.27 ------- ------- TOTAL FROM INVESTMENT OPERATIONS.................... (15.96) 9.14 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (0.32) (0.68) ------- ------- NET ASSET VALUE AT END OF PERIOD.................... $58.72 $83.46 ======= ======= TOTAL RETURN****.................................... (21.29)% 12.17% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)......... $11,744 $20,865 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................ 0.70%***** 0.70%***** Net Investment Income............................... 1.14%***** 2.03%****** Portfolio Turnover Ratio+........................... 8% --%
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** The amounts shown at this caption for a share outstanding may not accord with the change in aggregate gains and losses on investments for the fiscal period because of the timing of sales and repurchases of Fund shares in relation to fluctuating market values for the Fund. **** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. ***** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. See Notes to Financial Statements. SEMI-ANNUAL REPORT 53 NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2008 -------------------------------------------------------------------------------- 1. ORGANIZATION Rydex ETF Trust (the "Trust") is an open-end, management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust was organized as a Delaware statutory trust on November 22, 2002. As of April 30, 2008, the Trust offers of twenty three portfolios, each of which represent a separate series of beneficial interest in the Trust (each a "Fund" and collectively, the "Funds"). The financial statements herein relate to the following Funds: Rydex 2x S&P 500 ETF, Rydex Inverse 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex 2x Russell 2000(R) ETF, and Rydex Inverse 2x Russell 2000(R) ETF. The Funds commenced operations on November 5, 2007. The Funds' investment objective is to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. For Rydex 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, and Rydex 2x Russell 2000(R) ETF (each, a "Leveraged Fund" and collectively, the "Leveraged Funds"), each Fund's benchmark is 200% of the performance of an index representing publicly traded equity securities (the "Underlying Index"). For Rydex Inverse 2x S&P 500 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, and Rydex Inverse 2x Russell 2000(R) ETF (each, a "Leveraged Inverse Fund" and collectively, the "Leveraged Inverse Funds"), each Fund's benchmark is 200% of the inverse (opposite) performance of its Underlying Index. The Underlying Index for Rydex 2x S&P 500 ETF and Rydex Inverse 2x S&P 500 ETF is the S&P 500 Index. The Underlying Index for the Rydex 2x S&P MidCap 400 ETF and the Rydex Inverse 2x S&P MidCap 400 ETF is the S&P MidCap 400 Index. The Underlying Index for the Rydex 2x Russell 2000(R) ETF and the Rydex Inverse 2x Russell 2000(R) ETF is the Russell 2000(R) Index. The Leveraged Funds seek to achieve their objective by investing in equity securities contained in the Underlying Index, and leveraged derivative instruments, such as equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. The Leveraged Inverse Funds seek to achieve their objective by engaging in short sales of securities and investing in leveraged derivative instruments, such as equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. The Funds operate as index funds and are not actively managed. Adverse performance of a security in the Funds' portfolio will ordinarily not result in the elimination of the security from the Funds' portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with 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 primary market is the National Association of Securities Dealers Automated Quotations National Market System ("NASDAQ") are valued at the NASDAQ Official Closing Price. The Funds invest in money market mutual funds, which are valued at their NAV. Investments for which market quotations are not readily available are fair valued as determine in good faith by Rydex Investments under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade, (ii) in connection with futures contracts and options thereupon, and other derivative investments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market, and (iii) other information and considerations, including current values in related-markets. Financial futures contracts are valued based on the unrealized gain or loss on the contracts that is determined by the last quoted sales price, usually as of 4:00 PM on the valuation date on the exchange on which they trade. Domestic equity index swap agreements entered into by a Fund are valued based on the unrealized gain or loss on the agreements that is determined by marking the agreements to the relevant index at the close of the NYSE, usually 4:00 PM or, if there is an afternoon trade, to the "fill". The swaps' market values are then adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreements. Short-term securities are valued at amortized cost, which approximates market price. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedule of Investments reflect the current yield to maturity based on amortized cost as of the date of this report. Other securities bear interest at the rates shown, payable at fixed dates through SEMI-ANNUAL REPORT 54 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- maturity. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements. B. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are recorded as of 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. Advisory fees, which are directly identifiable to a specific Fund, are applied to that Fund. Trustee fees which cannot be attributed to a Fund are allocated in such a manner as deemed equitable, taking into consideration the relative net assets of the Fund. C. REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements with financial institutions. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed-upon price. The repurchase price reflects an agreed-upon interest rate during the time the Fund's money is invested in the security. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. The Funds follows certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by Rydex 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. D. FUTURES CONTRACTS The Funds may enter into stock index futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specified futures delivery date and at a specific price. Upon entering into a contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. There are several risks in connection with the use of futures contracts. Risks may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that a Fund may not be able to enter into a closing transaction because of an illiquid secondary market. E. SWAP AGREEMENTS The Funds may enter into domestic equity index swap agreements, which are over- the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified equity index, in return for periodic payment based on a fixed or variable interest rate. Swap agreements are used to obtain exposure to an equity or market without owning or taking physical custody of securities. The swap agreements are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses. There are several risks associated with the use of swap agreements that are different from those associated with ordinary portfolio securities transactions, due to the fact they could be considered illiquid. Although the Trust will not enter into any swap agreement unless the Advisor believes that the other party to the transaction is creditworthy, the Funds bear the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of the agreement counterparty. F. COLLATERAL In conjunction with the use of short sales, futures and swap agreements, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes, or the repurchase agreements allocated to each Fund. SEMI-ANNUAL REPORT 55 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- G. FEDERAL INCOME TAXES The Funds policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of the taxable income and capital gains, if any to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. 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 period ended April 30, 2008, the Funds realized no 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. Had there been in-kind net capital gains for the period ended April 30, 2008 are disclosed in the Fund's Statement of Operations. At April 30, 2008, the Funds had no capital loss carryforwards which may be utilized to offset any net realized capital gains as the Funds are in their first year of operation. H. DIVIDENDS AND DISTRIBUTIONS The Funds declare and pay dividends from net investment income and distribute from net realized capital gains at least annually. I. 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 risks inherent in the use of futures contracts and swap agreements, include i) adverse changes in the value of such instruments; ii) imperfect correlation between the price of the instruments and movements in the price of the underlying securities, indices, or futures contracts; III) the possible absence of a liquid secondary market for any particular instrument at any time; and iv) the potential of counterparty default. The Funds have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better. J. NEW ACCOUNTING PRONOUNCEMENTS On July 13, 2006, the Financial Accounting Standards Board ("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 Funds' 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 a more-likely-than-not threshold would be recorded as a tax 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. Management evaluated the implications of FIN 48 and determined that all tax positions meet the "more-likely than not" threshold. As a result, the financial statements have not been impacted by the adoption of FIN 48. However, management's conclusions regarding FIN 48 are subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance expected from FASB, and on-going analysis of tax laws, regulation, and interpretations thereof. In September, 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact, if any, the adoption of SFAS 157 will have on the Funds' financial statements. Management does not anticipate SFAS 157 will have a material impact on the Funds' financial statements. In March, 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact, if any, the adoption of SFAS 161 will have on the Funds' financial statement disclosures. 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 the relevant SEMI-ANNUAL REPORT 56 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- index. For these services, the Advisor receives an advisory fee at the annual rate shown below of the average daily net assets of the Funds.
ADVISORY FEE ------------ Rydex 2x S&P 500 ETF................................................. 0.70% Rydex Inverse 2x S&P 500 ETF......................................... 0.70% Rydex 2x S&P MidCap 400 ETF.......................................... 0.70% Rydex Inverse 2x S&P MidCap 400 ETF.................................. 0.70% Rydex 2x Russell 2000(R) ETF......................................... 0.70% Rydex Inverse 2x Russell 2000(R) ETF................................. 0.70%
The Advisor pays all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except: interest, taxes, distribution and trustee fees or expenses and extraordinary expenses. Under an Administration Agreement, State Street Bank and Trust Company (the "Administrator") provides various administrative and accounting services for the maintenance and operations of the Funds. Under a Custodian Agreement with the Trust, the Administrator maintains cash, securities and other assets of the Trust and the Funds in separate accounts for each fund, keeps all necessary accounts and records, and provides other services. The Administrator is required, upon the order of the Trust, to deliver securities held by the Custodian and to make payments for securities purchased by the Trust for the Funds. Pursuant to a Transfer Agency and Service Agreement with the Trust, the Administrator acts as a transfer agent for the Trust's authorized and issued shares of beneficial interest, and as dividend disbursing agent of the Trust. The Advisor compensates the Administrator directly for the foregoing services. The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to pay distribution fees to Rydex Distributors, Inc. (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. The Advisor made a voluntary capital contribution to the Fund during the period ended April 30, 2008 of $148,040 to offset a loss on a portfolio investment. 4. CAPITAL At April 30, 2008, there were an unlimited number of no par value shares of beneficial interest authorized. There is a minimum transaction fee per transaction to those persons purchasing or redeeming Creation Units. An additional charge of up to three times the standard transaction fee may be imposed for purchases and redemptions effected outside the National Securities Clearing Corporation usual clearing process or for cash. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the net asset value per unit of the Fund on the transaction date. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex 2x S&P 500 ETF............................................... $2,000 Rydex Inverse 2x S&P 500 ETF....................................... 50 Rydex 2x S&P MidCap 400 ETF........................................ 2,000 Rydex Inverse 2x S&P MidCap 400 ETF................................ 50 Rydex 2x Russell 2000(R) ETF....................................... 3,000 Rydex Inverse 2x Russell 2000(R) ETF............................... 50
The Administrator has waived the in-kind creation and redemption fees for the Funds for a period of six months from commencement. The Advisor will reimburse the Administrator for 50% of the waived creation and redemption fees. 5. INVESTMENT TRANSACTIONS For the period ended April 30, 2008 the Funds had in-kind contributions and in- kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex 2x S&P 500 ETF......................................... 2,292,461 -- Rydex Inverse 2x S&P 500 ETF................................. -- -- Rydex 2x S&P MidCap 400 ETF.................................. -- -- Rydex Inverse 2x S&P MidCap 400 ETF.......................... -- -- Rydex 2x Russell 2000(R) ETF................................. -- -- Rydex Inverse 2x Russell 2000(R) ETF......................... -- --
SEMI-ANNUAL REPORT 57 NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued) -------------------------------------------------------------------------------- Purchases and sales of investment securities (excluding short-term investments, U.S. government and government agency obligations) for the Funds were as follows:
PURCHASES SALES ---------- --------- Rydex 2x S&P 500 ETF........................................... 56,937,380 2,313,537 Rydex Inverse 2x S&P 500 ETF................................... -- -- Rydex 2x S&P MidCap 400 ETF.................................... 11,424,434 7,602,977 Rydex Inverse 2x S&P MidCap 400 ETF............................ -- -- Rydex 2x Russell 2000(R) ETF................................... 27,915,618 863,719 Rydex Inverse 2x Russell 2000(R) ETF........................... -- --
There were no purchases or sales of U.S. government or government agency obligations for the period ended April 30, 2008. The identified cost of investments in securities owned by each Fund for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and depreciation at April 30, 2008 were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION COST APPRECIATION DEPRECIATION (DEPRECIATION) ---------- ------------ ------------ -------------- Rydex 2x S&P 500 ETF............................ 33,284,140 870,582 797,342 73,240 Rydex Inverse 2x S&P 500 ETF.................... 49,392,947 -- -- -- Rydex 2x S&P MidCap 400 ETF..................... 3,279,790 185,788 229,411 (43,623) Rydex Inverse 2x S&P MidCap 400 ETF............. 6,727,000 -- -- -- Rydex 2x Russell 2000(R) ETF.................... 11,767,954 506,431 836,005 (329,574) Rydex Inverse 2x Russell 2000(R) ETF............ 18,774,000 -- -- --
6. ACQUISITION OF RYDEX INVESTMENTS AND THE DISTRIBUTOR At the close of business on January 17, 2008, Rydex NV, Inc., comprised of Rydex Investments, together with several other Rydex entities, was acquired by Security Benefit Corporation ("Security Benefit"), a financial services firm that provides a broad variety of financial programs to investors in the advisor, banking, education, government, institutional, and qualified plan markets (the "Transaction"). As a result of the Transaction's completion, Rydex Investments and the Distributor are wholly-owned subsidiaries of Security Benefit. While the Transaction has no material impact on the Funds or their shareholders, it resulted in a change of control of Rydex Investments, which in turn caused the termination of the investment advisory agreement between Rydex Investments and the Funds. A new investment advisory agreement between Rydex Investments and the Funds was approved under substantially the same terms as the previous investment advisory agreement (the "New Agreement"). This New Agreement was approved by shareholders, via proxy, and took effect upon the closing of the Transaction. The Transaction had no impact on the day-to-day operations of Rydex Investments, the fees payable to Rydex Investments under the New Agreement, or the persons responsible for the management of the Funds. SEMI-ANNUAL REPORT 58 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 59 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
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- CARL G. Rydex Series Funds - 2004 149 VERBONCOEUR* Rydex Variable Trust - 2004 Trustee, Rydex Dynamic Funds - 2004 President (1952) 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 Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II, Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund Services, Inc. and Rydex Distributors, Inc. (1997 to 2000) --------------------- MICHAEL P. Rydex Series Funds - 2005 149 BYRUM* Rydex Variable Trust - 2005 Trustee, Vice Rydex Dynamic Funds - 2005 President and Rydex ETF Trust - 2005 Secretary (1970)
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of Rydex Specialized Products, LLC (2005 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2004 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 Global Advisors (2004 to present); Chief Operating Officer of Rydex Global Advisors and Rydex Distributors, Inc. (2003 to 2004) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- JOHN O. DEMARET Rydex Series Funds - 1997 141 Trustee, Rydex Variable Trust - 1998 Chairman of the Rydex Dynamic Funds - 1999 Board (1940) Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired --------------------- COREY A. Rydex Series Funds - 1993 141 COLEHOUR Rydex Variable Trust - 1998 Trustee (1945) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of Marketing/Co-Owner, Schield Management Company --------------------- J. KENNETH Rydex Series Funds - 1995 141 DALTON Rydex Variable Trust - 1998 Trustee (1941) 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 141 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, Rydex Series Funds - 2005 141 JR. Rydex Variable Trust - 2005 Trustee (1960) Rydex Dynamic Funds - 2005 Rydex ETF Trust - 2005
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends Investments --------------------- PATRICK T. Rydex Series Funds - 1997 141 MCCARVILLE Rydex Variable Trust - 1998 Trustee (1942) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive Officer, Par Industries, Inc. --------------------- ROGER SOMERS Rydex Series Funds - 1993 141 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine -------------------------------------------------------------------------------- SEMI-ANNUAL REPORT 60 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) Specialized Products, LLC (2005 to present); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Fund Services, Inc. (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice President of Accounting of Rydex Fund Services, Inc. (2000 to 2003) JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Assistant Variable Trust, (1966) and Rydex Dynamic Funds (2004 to present); Assistant Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Assistant Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Fund Services, Inc. (2000 to present); Secretary of Rydex Capital Partners SphinX Fund (2003 to 2006) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006); Vice President of Rydex Fund Services, Inc. (2004 to present); Director of Accounting of Rydex Fund Services, Inc. (2003 to 2004); Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006); Director of Fund Administration of Rydex Fund Services, Inc. (2001 to present)
* Trustees and Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the 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-0408X1008 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 2, 2008, 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)(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 2, 2008 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 2, 2008 By (Signature and Title)* /s/ Nick Bonos ---------------------------------------- Nick Bonos, Vice President and Treasurer Date July 2, 2008 * Print the name and title of each signing officer under his or her signature.