N-CSR 1 b73517a1nvcsr.txt RYDEX ETF TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811- 21261 Rydex ETF Trust (Exact name of registrant as specified in charter) 9601 Blackwell Road, Suite 500 Rockville, Maryland 20850 (Address of principal executive offices) (Zip code) Carl G. Verboncoeur Rydex ETF Trust 9601 Blackwell Road, Suite 500 Rockville, Maryland 20850 (Name and address of agent for service) Registrant's telephone number, including area code: 1-301-296-5149 Date of fiscal year end: October 31, 2008 Date of reporting period: October 31, 2008 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. [GRAPHIC] OCTOBER 31, 2008 RYDEX ETF TRUST ANNUAL REPORT RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 ETF [RYDEX INVESTMENTS(TM) LOGO] ESSENTIAL FOR MODERN MARKETS TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS...... 2 FEES AND EXPENSES... 4 MANAGER'S ANALYSIS.. 5 SCHEDULE OF INVESTMENTS....... 9 STATEMENTS OF ASSETS AND LIABILITIES... 18 STATEMENTS OF OPERATIONS........ 19 STATEMENTS OF CHANGES IN NET ASSETS............ 20 FINANCIAL HIGHLIGHTS........ 21 NOTES TO FINANCIAL STATEMENTS........ 23 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S REPORT............ 28 SUPPLEMENTAL INFORMATION....... 29
1 ANNUAL REPORT -------------------------------------------------------------------------------- DEAR SHAREHOLDER: Rydex is a proud participant in the ETF space with $1.7 billion in ETF assets and more than 30 exchange traded funds. Due to their convenience, transparency and ability to provide access to difficult to reach areas of the market, ETFs can play an important role in investor portfolios. Professional investment advisors are increasingly using ETFs in their portfolios. A 2008 survey of registered investment advisors (RIAs) by Rydex AdvisorBenchmarking(TM) revealed that three-quarters of RIAs now use ETFs and that ETFs now slightly edge out the use of stocks in advisor portfolios. Rydex believes that investor knowledge is paramount when contemplating investment options. While advisor ETF use is skyrocketing, because investors still have room for education on ETFs, Rydex now offers ETF Essentials(TM) -- A COMPREHENSIVE GUIDE TO ETFS -- TO HELP ADVISORS EDUCATE THEIR CLIENTS ON THE NUANCES OF ETFS. THE PROGRAM PRESENTS INFORMATION ON ETF TOPICS IN SIMPLE UNDERSTANDABLE LANGUAGE AND IS AVAILABLE VIA PRINT AND ONLINE. IT'S ALSO FREE AND CAN BE REQUESTED ON WWW.RYDEXINVESTMENTS.COM web site. Market Conditions. The last 12 months proved to be the most extraordinarily difficult period for investors in nearly a century. The crisis that unfolded during the summer months hit nearly every conceivable asset class, resulting in huge declines in wealth regardless of how investors had structured their portfolios. Other than treasury bills and the U.S. dollar, no investment category was spared the panic that washed over the world's financial markets. In the U.S., the major stock market averages lost more than 20% of their value, while international markets fared worse. Emerging market stocks were hit particularly hard as shown by the nearly 60% decline in Chinese share prices. Although commodity prices rose over the period, that masks an astounding plunge from mid-summer highs. From early July -- when oil rose to nearly $150/barrel, commodities -- led by oil -- fell more than 30%. Sector selection strategies offered little respite. Only consumer staples stocks, the most defensive in the S&P 500 Sector Index series, provided some degree of protection as that index held losses to less than 1.5%. Other traditional safe havens such as utilities and health care were down between 15% -25% while financial stocks, which are at the epicenter of the crisis, fell nearly 43%. The events of late September completely overwhelmed everything that had come before. In an incredibly brief period, the entire global financial system seized up as the lubricant of any economy -- bank lending -- came to a complete halt. The resulting crash in global stock markets was as steep and deep as anything witnessed since the crash of 1929 and continues to this day. The Wall Street model of large, aggressive, risk-taking investment banks was completely swept aside as financial titans such as Merrill Lynch, Morgan Stanley, Goldman Sachs and Lehman Brothers collapsed, merged with, or were reborn as commercial banks. Financial dominos tumbled as a wave of commercial bank failures -- the most since the S&L crisis of the 1990s -- unfolded in the third quarter, culminating with the collapse of Washington Mutual, the largest bank failure in U.S. history. The other huge and profound shift is the nationalization of the global financial system. The takeover of Fannie Mae and Freddie Mac and AIG, the seizure of IndyMac Bank and Washington Mutual and the forced merger of Wachovia, along with blanket guarantees of mortgage-backed securities, whole loans, intra- bank loans, money market funds and bank deposits (both here and in Europe) point to a near takeover of the global financial system by national governments. In this history-making period, governments at all levels moved with unprecedented speed, scope and coordination to save the financial system and with it the global economy. In the U.S. this culminated with a $700 billion plan put forward by the U.S. Treasury to essentially buy up all the bad mortgage assets clogging the financial system. Rejection of that plan by the House of Representatives late in September sent the markets into a tailspin with the Dow suffering its biggest point drop in history and sending the index to three-year lows. Treasury bill yields fell to near zero and interest rates on longer-dated treasuries fell to a decade low in a massive flight to safety. It is not all doom and gloom, however. This environment has broken the commodity bubble and has resulted in a huge slowdown in global inflation. This helps the emerging markets, whose economies and markets have been pummeled by the rise in food and energy costs. It has also ushered in a period of dollar strength, which gives the Fed additional room to ease. Moreover, interest rates could hardly be lower and stocks are cheaper than they have been in some time. With the massive amounts of liquidity pumped into the system, stocks could rally sharply in the months ahead -- they have repeatedly shown signs of doing throughout the crisis. Having gone through at least four false bottoms so far this year -- Societe Generale, Bear Stearns, Fannie Mae /Freddie Mac and Lehman Brothers -- the question is: Can any rally be sustained? The key to that question is fairly straightforward. The allocation of credit in the bond and money markets needs to resume. No recovery in stocks is possible without it. While capital has been thrown at the markets and recovery plans announced, the mountain of bad debt is still sitting on bank balance sheets. The fuel is in place for the markets to recover -- they always do. This process is likely to be lengthy, though. Navigating through this difficult environment will require carefully thought-out investment strategies and the discipline to stay the course. 2 -------------------------------------------------------------------------------- These tumultuous markets did not leave the ETF space unscathed. According to the Investment Company Institute, over the past 12 months, while the number of ETFs on the market has increased 19% (from 586 in October 2007 to 698 in October 2008), ETF assets decreased $105.86 billion, or 18%. Despite the market's erosion of assets, with their numerous benefits, ETFs can provide a suitable choice for investors looking for convenient access to the markets. 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 innovative ETF choices to meet your investment needs. Sincerely, -s- David C. Reilly, CFA David C. Reilly, CFA Director of Portfolio Strategies 3 ANNUAL REPORT SHAREHOLDER EXPENSE EXAMPLE As a shareholder of the Rydex ETF Trust, you incur transaction costs such as creation and redemption fees or brokerage charges, and ongoing costs including advisory fees and, if applicable, distribution fees. All other Trust expenses are paid by the advisor. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example in the table is based on an investment of $1,000 invested on April 30, 2008 and held for the six months ended October 31, 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* 4/30/08 10/31/08 4/30/08 TO 10/31/08 --------- --------- ------------------- ACTUAL Rydex S&P Equal Weight ETF............................ $1,000.00 $ 559.50 $1.57 Rydex Russell Top 50 ETF.............................. $1,000.00 $ 659.60 $0.83 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P Equal Weight ETF............................ $1,000.00 $1,023.13 $2.03 Rydex Russell Top 50 ETF.............................. $1,000.00 $1,024.13 $1.02
-------- * Expenses are equal to the Fund's annualized expense ratio of 0.40% and 0.20% respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period). 4 RYDEX S&P EQUAL WEIGHT ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Rydex S&P Equal Weight ETF (RSP) returned -39.75% for the year ending 10/31/2008 compared to the benchmark S&P Equal Weight Index and the traditional capitalization-weighted S&P 500, which returned -39.18% and -36.10% respectively for the same time period. Overall weakness in the financials sector served as the major detractor of returns, affecting both the equal-weight and cap-weight indices. The S&P Equal Weight Index's higher allocation to consumer discretionary stocks caused this sector to be the second largest detractor of returns for RSP. Compared to its cap-weighted counterpart, the equal weight index had approximately twice the exposure to consumer discretionaries. Varying allocations to consumer staple stocks also accounted for performance differences between the S&P Equal Weight Index and the S&P 500. As the larger-cap stocks weathered the market meltdowns, higher allocations to smaller companies in the consumer staples sector detracted from RSP's returns relative to the cap-weighted index. CUMULATIVE FUND PERFORMANCE: APRIL 24, 2003 - OCTOBER 31, 2008 (PERFORMANCE GRAPH)
S&P 500 RYDEX S&P EQUAL WEIGHT S&P 500 EQUAL WEIGHT TOTAL RETURN TOTAL RETURN ETF INDEX INDEX ------------ ------------ ------------ 4/24/2003 10000 10000 10000 4/30/2003 10114 10115 10063 5/31/2003 11091 11096 10594 6/30/2003 11170 11179 10729 7/31/2003 11457 11469 10918 8/31/2003 11960 11977 11131 9/30/2003 11754 11774 11013 10/31/2003 12575 12605 11636 11/30/2003 12841 12876 11738 12/31/2003 13500 13543 12354 1/31/2004 13822 13872 12580 2/29/2004 14096 14152 12755 3/31/2004 13999 14061 12563 4/30/2004 13643 13708 12365 5/31/2004 13893 13964 12535 6/30/2004 14316 14395 12779 7/31/2004 13684 13762 12356 8/31/2004 13663 13733 12406 9/30/2004 14019 14100 12540 10/31/2004 14349 14438 12732 11/30/2004 15177 15277 13247 12/31/2004 15727 15839 13698 1/31/2005 15254 15367 13364 2/28/2005 15576 15694 13645 3/31/2005 15371 15492 13404 4/30/2005 14897 15013 13149 5/31/2005 15567 15695 13568 6/30/2005 15785 15921 13587 7/31/2005 16577 16729 14092 8/31/2005 16396 16551 13964 9/30/2005 16529 16691 14077 10/31/2005 16112 16273 13842 11/30/2005 16812 16986 14366 12/31/2005 16933 17116 14371 1/31/2006 17620 17821 14751 2/28/2006 17653 17857 14791 3/31/2006 17971 18185 14975 4/30/2006 18155 18378 15176 5/31/2006 17628 17846 14740 6/30/2006 17582 17807 14760 7/31/2006 17320 17546 14851 8/31/2006 17804 18045 15204 9/30/2006 18255 18510 15596 10/31/2006 18919 19193 16104 11/30/2006 19391 19678 16410 12/31/2006 19526 19820 16640 1/31/2007 19979 20292 16892 2/28/2007 19905 20221 16562 3/31/2007 20056 20381 16747 4/30/2007 20919 21266 17489 5/31/2007 21601 21969 18099 6/30/2007 21209 21579 17798 7/31/2007 20248 20604 17246 8/31/2007 20277 20641 17505 9/30/2007 20781 21164 18160 10/31/2007 21043 21437 18449 11/30/2007 20033 20411 17677 12/31/2007 19741 20123 17555 1/31/2008 18873 19234 16502 2/29/2008 18230 18587 15966 3/31/2008 18031 18392 15897 4/30/2008 18970 19360 16671 5/31/2008 19460 19881 16887 6/30/2008 17552 17937 15463 7/31/2008 17460 17851 15333 8/31/2008 17964 18379 15555 9/30/2008 16077 16517 14169 10/31/2008 12680 13038 11789
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR THREE YEAR FIVE YEAR (04/24/03) -------- ---------- --------- --------------- RYDEX S&P EQUAL WEIGHT ETF.................. -39.75% -7.68% 0.16% 4.39% S&P EQUAL WEIGHT TOTAL RETURN INDEX......... -39.18% -7.12% 0.68% 4.92% S&P 500 TOTAL RETURN INDEX.................. -36.10% -5.21% 0.26% 3.03%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is not guarantee of future results. 5 ANNUAL REPORT Rydex S&P Equal Weight ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SSGA GOVERNMENT MONEY MARKET FUNDS 0.42% INTERCONTINENTAL EXCHANGE, INC. 0.31% APOLLO GROUP, INC. -- CLASS A 0.31% MICRON TECHNOLOGY, INC. 0.30% SOUTHWESTERN ENERGY CO. 0.30% TELLABS, INC. 0.29% KROGER CO. 0.27% JPMORGAN CHASE & CO. 0.27% BANK OF NEW YORK MELLON CORP. 0.27% DAVITA, INC. 0.27% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 15.68 Consumer Discretionary 15.19 Information Technology 14.87 Health Care 11.51 Industrials 11.14 Consumer Staples 9.22 Energy 7.58 Utilities 7.30 Materials 5.73 Telecommunication Services 1.78
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 6 -------------------------------------------------------------------------------- RYDEX RUSSELL TOP 50 ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Rydex Russell Top 50(R) ETF (XLG) finished the year down approximately 33% due in large part to its exposure to the financials and information technology sectors. XLG returned -32.92% for the year ending 10/31/2008, compared to the Russell Top 50 benchmark, which returned -33.01% for the same time period. Slight underweighting in information technology was behind the fund's outperformance relative to its benchmark. There were few areas to escape the financial and economic crisis, but mega-cap stocks fared marginally better than their small-cap counterparts. Not surprisingly, the credit crisis played a role in the XLG's negative returns. Diversified banks such as Citigroup (C), Bank of America (BOA) and Goldman Sachs (GS) were hit especially hard during the months of September and October. Likewise, technology hardware and equipment finished the year down more than 30%, contributing almost 4% to the fund's decline. The food and staples retailing sectors -- specifically Wal-Mart (WMT) -- were the lone bright spots for the fund and the Russell Top 50 Index, returning 2.62% and 2.28% respectively for the year. CUMULATIVE FUND PERFORMANCE: MAY 4, 2005 - OCTOBER 31, 2008 (Performance Graph)
RYDEX RUSSELL RUSSELL TOP S&P 100 TOP 50 50 TOTAL TOTAL RETURN ETF RETURN INDEX INDEX ------------- ------------ ------------ 5/4/2005 10000 10000 10000 5/31/2005 10116 10119 10088 6/30/2005 9963 9966 9989 7/31/2005 10184 10189 10263 8/31/2005 10108 10114 10142 9/30/2005 10162 10171 10196 10/31/2005 10036 10043 10027 11/30/2005 10364 10375 10381 12/31/2005 10285 10297 10312 1/31/2006 10424 10439 10482 2/28/2006 10457 10472 10550 3/31/2006 10536 10555 10691 4/30/2006 10667 10689 10856 5/31/2006 10393 10417 10618 6/30/2006 10409 10434 10601 7/31/2006 10676 10706 10782 8/31/2006 10978 11010 11060 9/30/2006 11270 11307 11405 10/31/2006 11659 11702 11795 11/30/2006 11863 11909 12001 12/31/2006 12123 12172 12216 1/31/2007 12214 12266 12349 2/28/2007 11758 11806 11960 3/31/2007 11886 11937 12087 4/30/2007 12436 12503 12673 5/31/2007 12828 12902 13117 6/30/2007 12600 12671 12953 7/31/2007 12346 12415 12650 8/31/2007 12617 12689 12902 9/30/2007 13105 13189 13432 10/31/2007 13287 13374 13635 11/30/2007 12757 12841 13061 12/31/2007 12685 12772 12964 1/31/2008 11894 11972 12178 2/29/2008 11339 11414 11654 3/31/2008 11382 11457 11676 4/30/2008 11875 11958 12212 5/31/2008 11804 11885 12209 6/30/2008 10788 10843 11123 7/31/2008 10834 10893 11199 8/31/2008 10990 11052 11360 9/30/2008 10339 10394 10496 10/31/2008 8913 8959 8964
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR THREE YEAR (05/4/05) -------- ---------- --------------- RYDEX RUSSELL TOP 50 ETF........................... -32.92% -3.88% -3.24% RUSSELL TOP 50 TOTAL RETURN INDEX.................. -33.01% -3.74% -3.10% S&P 100 TOTAL RETURN INDEX......................... -34.26% -3.67% -3.08%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is not guarantee of future results. 7 ANNUAL REPORT Rydex Russell Top 50 ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 8.95% PROCTER & GAMBLE CO. 4.51% GENERAL ELECTRIC CO. 4.45% MICROSOFT CORP. 4.10% JOHNSON & JOHNSON 3.95% AT&T, INC. 3.64% CHEVRON CORP. 3.53% JPMORGAN CHASE & CO. 3.26% INTERNATIONAL BUSINESS MACHINES CORP. 2.92% WAL-MART STORES, INC. 2.86% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Information Technology 21.50 Energy 16.85 Consumer Staples 14.94 Health Care 13.89 Financials 12.19 Industrials 8.47 Telecommunication Services 5.60 Consumer Discretionary 4.49 Materials 1.26 Utilities 0.81
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 8 Rydex S&P Equal Weight ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS 99.5% AEROSPACE & DEFENSE 2.3% Boeing Co. .................. 39,047 $2,040,987 General Dynamics Corp. ...... 27,020 1,629,846 Goodrich Corp. .............. 48,930 1,788,881 Honeywell International, Inc. ..................... 51,499 1,568,145 L-3 Communications Holdings, Inc. ..................... 22,087 1,792,802 Lockheed Martin Corp. ....... 19,851 1,688,327 Northrop Grumman Corp. ...... 34,866 1,634,867 Precision Castparts Corp. ... 25,758 1,669,376 Raytheon Co. ................ 38,181 1,951,431 Rockwell Collins, Inc. ...... 46,098 1,716,228 United Technologies Corp. ... 36,273 1,993,564 ------------ TOTAL AEROSPACE & DEFENSE 19,474,454 ------------ AIR FREIGHT & LOGISTICS 0.9% C.H. Robinson Worldwide, Inc. ..................... 40,469 2,095,485 Expeditors International of Washington, Inc. ......... 58,667 1,915,477 FedEx Corp. ................. 24,797 1,620,980 United Parcel Service, Inc. -- Class B........... 34,061 1,797,740 ------------ TOTAL AIR FREIGHT & LOGISTICS 7,429,682 ------------ AIRLINES 0.2% Southwest Airlines Co. ...... 144,931 1,707,287 ------------ TOTAL AIRLINES 1,707,287 ------------ AUTO COMPONENTS 0.3% Goodyear Tire & Rubber Co.(The)*................. 139,425 1,243,671 Johnson Controls, Inc. ...... 68,215 1,209,452 ------------ TOTAL AUTO COMPONENTS 2,453,123 ------------ AUTOMOBILES 0.4% Ford Motor Co.* ............. 429,319 940,209 General Motors Corp. ........ 198,816 1,149,156 Harley-Davidson, Inc. ....... 53,388 1,306,938 ------------ TOTAL AUTOMOBILES 3,396,303 ------------ BEVERAGES 1.8% Anheuser-Busch Cos., Inc. ... 34,431 2,135,755 Brown-Forman Corp. -- Class B......................... 38,177 1,733,213 Coca-Cola Co.(The)........... 42,428 1,869,378 Coca-Cola Enterprises, Inc. ..................... 129,484 1,301,314 Constellation Brands, Inc. -- Class A*.......... 102,788 1,288,962 Dr Pepper Snapple Group, Inc.* .................... 85,435 1,956,461 Molson Coors Brewing Co. -- Class B............ 46,581 1,740,266 Pepsi Bottling Group, Inc. .. 72,787 1,682,835 PepsiCo, Inc. ............... 30,884 1,760,697 ------------ TOTAL BEVERAGES 15,468,881 ------------ BIOTECHNOLOGY 1.3% Amgen, Inc.* ................ 37,504 2,246,115 Biogen Idec, Inc.* .......... 48,106 2,046,910 Celgene Corp.* .............. 35,173 2,260,217 Genzyme Corp.* .............. 28,083 2,046,689 Gilead Sciences, Inc.* ...... 48,078 2,204,376 ------------ TOTAL BIOTECHNOLOGY 10,804,307 ------------ BUILDING PRODUCTS 0.1% Masco Corp. ................. 118,827 1,206,094 ------------ TOTAL BUILDING PRODUCTS 1,206,094 ------------ CAPITAL MARKETS 3.1% American Capital, Ltd. ...... 94,119 1,322,372 Ameriprise Financial, Inc. .. 57,321 1,238,134 Bank of New York Mellon Corp. .................... 70,328 2,292,693 Charles Schwab Corp.(The).... 94,536 1,807,528 E*TRADE Financial Corp.* .... 686,269 1,249,010 Federated Investors, Inc. -- Class B........... 83,686 2,025,201 Franklin Resources, Inc. .... 24,254 1,649,272 Goldman Sachs Group, Inc.(The)................. 20,799 1,923,907 Invesco Ltd. ................ 94,634 1,410,993 Janus Capital Group, Inc. ... 93,540 1,098,160 Legg Mason, Inc. ............ 61,313 1,360,535 Merrill Lynch & Co., Inc. ... 101,004 1,877,664 Morgan Stanley............... 101,288 1,769,501 Northern Trust Corp. ........ 30,005 1,689,582 State Street Corp. .......... 38,429 1,665,897 T. Rowe Price Group, Inc. ... 38,226 1,511,456 ------------ TOTAL CAPITAL MARKETS 25,891,905 ------------ CHEMICALS 2.9% Air Products & Chemicals, Inc. ..................... 29,704 1,726,693 Ashland, Inc. ............... 77,630 1,753,662 CF Industries Holdings, Inc. ..................... 20,568 1,320,260 Dow Chemical Co.(The)........ 63,225 1,686,211 Du Pont (E.I.) de Nemours & Co. ...................... 49,300 1,577,600 Eastman Chemical Co. ........ 37,728 1,523,834 Ecolab, Inc. ................ 45,754 1,704,794 Hercules, Inc. .............. 115,664 1,944,312 International Flavors & Fragrances, Inc. ......... 52,564 1,675,740 Monsanto Co. ................ 20,127 1,790,900 PPG Industries, Inc. ........ 33,577 1,664,748 Praxair, Inc. ............... 27,588 1,797,358 Rohm & Haas Co. ............. 30,712 2,160,589 Sigma-Aldrich Corp. ......... 42,724 1,873,875 ------------ TOTAL CHEMICALS 24,200,576 ------------ COMMERCIAL BANKS 3.4% BB&T Corp. .................. 56,610 2,029,468 Comerica, Inc. .............. 61,573 1,698,799 Fifth Third Bancorp.......... 140,131 1,520,421 First Horizon National Corp. .................... 163,700 1,949,667 Huntington Bancshares, Inc. ..................... 212,967 2,012,538 KeyCorp...................... 166,064 2,030,963 M&T Bank Corp. .............. 25,026 2,029,609 Marshall & Ilsley Corp. ..... 97,807 1,763,460 National City Corp. ......... 501,243 1,353,356 PNC Financial Services Group, Inc. ..................... 28,461 1,897,495 Regions Financial Corp. ..... 153,964 1,707,461 SunTrust Banks, Inc. ........ 40,727 1,634,782 U.S. Bancorp................. 61,318 1,827,889 Wachovia Corp. .............. 156,219 1,001,364
9 ANNUAL REPORT See Notes to Financial Statements. Rydex S&P Equal Weight ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Wells Fargo & Co. ........... 60,572 $2,062,477 Zions Bancorp................ 48,216 1,837,512 ------------ TOTAL COMMERCIAL BANKS 28,357,261 ------------ COMMERCIAL SERVICES & SUPPLIES 1.9% Allied Waste Industries, Inc.* .................... 197,543 2,058,398 Avery Dennison Corp. ........ 48,786 1,708,486 Cintas Corp. ................ 71,197 1,687,369 Equifax, Inc. ............... 66,927 1,745,456 Monster Worldwide, Inc.* .... 122,318 1,741,808 Pitney Bowes, Inc. .......... 63,191 1,565,873 R.R. Donnelley & Sons Co. ... 92,123 1,526,478 Robert Half International, Inc. ..................... 88,465 1,669,334 Waste Management, Inc. ...... 66,494 2,076,608 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 15,779,810 ------------ COMMUNICATIONS EQUIPMENT 1.9% Ciena Corp.* ................ 219,145 2,105,984 Cisco Systems, Inc.* ........ 99,370 1,765,805 Corning, Inc. ............... 142,554 1,543,860 Harris Corp. ................ 48,415 1,740,519 JDS Uniphase Corp.* ......... 266,024 1,452,491 Juniper Networks, Inc.* ..... 87,237 1,634,821 Motorola, Inc. .............. 319,212 1,714,168 QUALCOMM, Inc. .............. 48,510 1,855,993 Tellabs, Inc.* .............. 578,679 2,453,599 ------------ TOTAL COMMUNICATIONS EQUIPMENT 16,267,240 ------------ COMPUTERS & PERIPHERALS 2.1% Apple, Inc.* ................ 16,921 1,820,531 Dell, Inc.* ................. 131,622 1,599,207 EMC Corp.* .................. 182,799 2,153,372 Hewlett-Packard Co. ......... 48,026 1,838,435 International Business Machines Corp. ........... 19,678 1,829,464 Lexmark International, Inc. -- Class A*.......... 69,505 1,795,314 NetApp, Inc.* ............... 110,964 1,501,343 QLogic Corp.* ............... 131,164 1,576,591 SanDisk Corp.* .............. 100,627 894,574 Sun Microsystems, Inc.* ..... 279,800 1,287,080 Teradata Corp.* ............. 102,335 1,574,936 ------------ TOTAL COMPUTERS & PERIPHERALS 17,870,847 ------------ CONSTRUCTION & ENGINEERING 0.3% Fluor Corp. ................. 38,819 1,550,042 Jacobs Engineering Group, Inc.* .................... 38,332 1,396,435 ------------ TOTAL CONSTRUCTION & ENGINEERING 2,946,477 ------------ CONSTRUCTION MATERIALS 0.2% Vulcan Materials Co. ........ 27,428 1,488,792 ------------ TOTAL CONSTRUCTION MATERIALS 1,488,792 ------------ CONSUMER FINANCE 0.8% American Express Co. ........ 60,067 1,651,843 Capital One Financial Corp. .................... 41,669 1,630,091 Discover Financial Services.. 154,329 1,890,530 SLM Corp.* .................. 184,303 1,966,513 ------------ TOTAL CONSUMER FINANCE 7,138,977 ------------ CONTAINERS & PACKAGING 0.9% Ball Corp. .................. 53,788 1,839,550 Bemis Co., Inc. ............. 79,378 1,971,749 Pactiv Corp.* ............... 81,701 1,924,876 Sealed Air Corp. ............ 98,158 1,660,833 ------------ TOTAL CONTAINERS & PACKAGING 7,397,008 ------------ DISTRIBUTORS 0.3% Genuine Parts Co. ........... 54,690 2,152,052 ------------ TOTAL DISTRIBUTORS 2,152,052 ------------ DIVERSIFIED CONSUMER SERVICES 0.5% Apollo Group, Inc. -- Class A*........................ 37,178 2,584,243 H&R Block, Inc. ............. 94,086 1,855,376 ------------ TOTAL DIVERSIFIED CONSUMER SERVICES 4,439,619 ------------ DIVERSIFIED FINANCIAL SERVICES 2.0% Bank of America Corp. ....... 73,816 1,784,133 CIT Group, Inc. ............. 210,956 873,358 Citigroup, Inc. ............. 134,585 1,837,085 CME Group, Inc. ............. 6,301 1,777,827 IntercontinentalExchange, Inc.* .................... 30,895 2,643,376 JPMorgan Chase & Co. ........ 56,092 2,313,795 Leucadia National Corp. ..... 58,125 1,560,075 Moody's Corp. ............... 61,905 1,584,768 Nasdaq OMX Group (The)*...... 33,534 1,088,514 NYSE Euronext................ 55,343 1,670,252 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 17,133,183 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 1.4% AT&T, Inc. .................. 77,972 2,087,311 CenturyTel, Inc. ............ 59,304 1,489,123 Embarq Corp. ................ 51,720 1,551,600 Frontier Communications Corp. .................... 192,571 1,465,465 Qwest Communications International, Inc. ...... 622,457 1,780,227 Verizon Communications, Inc. ..................... 69,537 2,063,163 Windstream Corp. ............ 196,598 1,476,451 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 11,913,340 ------------ ELECTRIC UTILITIES 3.1% Allegheny Energy, Inc. ...... 61,268 1,847,230 American Electric Power Co., Inc. ..................... 63,400 2,068,742 Duke Energy Corp. ........... 121,770 1,994,593 Edison International......... 56,701 2,017,989 Entergy Corp. ............... 25,983 2,027,973 Exelon Corp. ................ 35,479 1,924,381 FirstEnergy Corp. ........... 34,062 1,776,674 FPL Group, Inc. ............. 43,079 2,035,052 Pepco Holdings, Inc. ........ 100,734 2,080,157 Pinnacle West Capital Corp. .................... 63,845 2,020,694 PPL Corp. ................... 63,170 2,073,239
10 See Notes to Financial Statements. Rydex S&P Equal Weight ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Progress Energy, Inc. ....... 51,467 $2,026,256 Southern Co. ................ 57,181 1,963,595 ------------ TOTAL ELECTRIC UTILITIES 25,856,575 ------------ ELECTRICAL EQUIPMENT 0.6% Cooper Industries, Ltd. -- Class A........... 52,914 1,637,688 Emerson Electric Co. ........ 52,638 1,722,842 Rockwell Automation, Inc. ... 62,425 1,727,300 ------------ TOTAL ELECTRICAL EQUIPMENT 5,087,830 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS 0.9% Agilent Technologies, Inc.* .................... 72,300 1,604,337 Amphenol Corp. -- Class A.... 55,930 1,602,394 Jabil Circuit, Inc. ......... 201,197 1,692,067 Molex, Inc. ................. 91,734 1,321,887 Tyco Electronics, Ltd. ...... 84,327 1,639,317 ------------ TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 7,860,002 ------------ ENERGY EQUIPMENT & SERVICES 2.1% Baker Hughes, Inc. .......... 34,974 1,222,341 BJ Services Co. ............. 107,741 1,384,472 Cameron International Corp.* ................... 56,475 1,370,084 ENSCO International, Inc. ... 38,848 1,476,613 Halliburton Co. ............. 65,509 1,296,423 Nabors Industries, Ltd.* .... 86,812 1,248,357 National-Oilwell Varco, Inc.* .................... 43,049 1,286,735 Noble Corp. ................. 52,344 1,686,000 Rowan Cos., Inc. ............ 69,288 1,256,884 Schlumberger, Ltd. .......... 27,434 1,416,966 Smith International, Inc. ... 37,038 1,277,070 Transocean, Inc.* ........... 19,755 1,626,429 Weatherford International, Ltd.* .................... 80,698 1,362,182 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 17,910,556 ------------ FOOD & STAPLES RETAILING 1.9% Costco Wholesale Corp. ...... 33,205 1,893,017 CVS Caremark Corp. .......... 62,794 1,924,636 Kroger Co.(The).............. 84,455 2,319,134 Safeway, Inc. ............... 88,596 1,884,437 SUPERVALU, Inc. ............. 99,974 1,423,630 Sysco Corp. ................. 66,152 1,733,183 Wal-Mart Stores, Inc. ....... 36,783 2,052,859 Walgreen Co. ................ 69,003 1,756,816 Whole Foods Market, Inc. .... 109,928 1,178,428 ------------ TOTAL FOOD & STAPLES RETAILING 16,166,140 ------------ FOOD PRODUCTS 2.8% Archer-Daniels-Midland Co. .. 105,374 2,184,403 Campbell Soup Co. ........... 56,720 2,152,524 ConAgra Foods, Inc. ......... 115,147 2,005,861 Dean Foods Co.* ............. 95,499 2,087,608 General Mills, Inc. ......... 32,451 2,198,231 H.J. Heinz Co. .............. 45,536 1,995,387 Hershey Co.(The)............. 52,740 1,964,038 Kellogg Co. ................. 39,687 2,001,019 Kraft Foods, Inc. -- Class A......................... 66,921 1,950,078 McCormick & Co., Inc. ....... 57,228 1,926,294 Sara Lee Corp. .............. 174,434 1,950,172 Tyson Foods, Inc. -- Class A......................... 174,674 1,526,651 ------------ TOTAL FOOD PRODUCTS 23,942,266 ------------ GAS UTILITIES 0.5% Nicor, Inc. ................. 46,350 2,141,833 Questar Corp. ............... 52,523 1,809,943 ------------ TOTAL GAS UTILITIES 3,951,776 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 2.5% Baxter International, Inc. .. 34,074 2,061,136 Becton, Dickinson & Co. ..... 28,148 1,953,471 Boston Scientific Corp.* .... 167,613 1,513,545 C.R. Bard, Inc. ............. 22,863 2,017,660 Covidien, Ltd. .............. 40,892 1,811,107 Hospira, Inc.* .............. 57,408 1,597,091 Intuitive Surgical, Inc.* ... 8,224 1,421,025 Medtronic, Inc. ............. 42,915 1,730,762 St Jude Medical, Inc.* ...... 50,352 1,914,887 Stryker Corp. ............... 35,742 1,910,767 Varian Medical Systems, Inc.* .................... 37,612 1,711,722 Zimmer Holdings, Inc.* ...... 33,067 1,535,301 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 21,178,474 ------------ HEALTH CARE PROVIDERS & SERVICES 3.2% Aetna, Inc. ................. 59,413 1,477,601 AmerisourceBergen Corp. ..... 57,743 1,805,624 Cardinal Health, Inc. ....... 44,266 1,690,961 CIGNA Corp. ................. 60,922 993,029 Coventry Health Care, Inc.* .................... 69,429 915,768 DaVita, Inc.* ............... 40,399 2,292,643 Express Scripts, Inc.* ...... 30,050 1,821,330 Humana, Inc.* ............... 53,867 1,593,924 Laboratory Corp. of America Holdings*................. 30,769 1,891,986 McKesson Corp. .............. 40,989 1,507,985 Medco Health Solutions, Inc.* .................... 46,644 1,770,140 Patterson Cos., Inc.* ....... 71,978 1,823,203 Quest Diagnostics, Inc. ..... 40,145 1,878,786 Tenet Healthcare Corp.* ..... 367,794 1,610,938 UnitedHealth Group, Inc. .... 85,271 2,023,481 WellPoint, Inc.* ............ 47,572 1,849,124 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 26,946,523 ------------ HEALTH CARE TECHNOLOGY 0.2% IMS Health, Inc. ............ 111,291 1,595,913 ------------ TOTAL HEALTH CARE TECHNOLOGY 1,595,913 ------------ HOTELS, RESTAURANTS & LEISURE 1.8% Carnival Corp. .............. 57,640 1,464,056 Darden Restaurants, Inc. .... 77,057 1,708,354 International Game Technology................ 127,043 1,778,602 Marriott International, Inc. -- Class A........... 82,598 1,723,820 McDonald's Corp. ............ 35,333 2,046,841 Starbucks Corp.* ............ 141,379 1,856,306
11 ANNUAL REPORT See Notes to Financial Statements. Rydex S&P Equal Weight ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Starwood Hotels & Resorts Worldwide, Inc. .......... 66,324 $1,494,943 Wyndham Worldwide Corp. ..... 136,306 1,116,346 Yum! Brands, Inc. ........... 58,052 1,684,089 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 14,873,357 ------------ HOUSEHOLD DURABLES 2.3% Black & Decker Corp. ........ 34,092 1,725,737 Centex Corp. ................ 137,293 1,681,839 D.R. Horton, Inc. ........... 165,841 1,223,907 Fortune Brands, Inc. ........ 37,577 1,433,187 Harman International Industries, Inc. ......... 70,595 1,296,830 KB HOME...................... 100,731 1,681,200 Leggett & Platt, Inc. ....... 95,291 1,654,252 Lennar Corp. -- Class A...... 150,851 1,167,587 Newell Rubbermaid, Inc. ..... 120,092 1,651,265 Pulte Homes, Inc. ........... 137,538 1,532,173 Snap-on, Inc. ............... 41,520 1,534,164 Stanley Works(The)........... 50,280 1,646,167 Whirlpool Corp. ............. 26,172 1,220,924 ------------ TOTAL HOUSEHOLD DURABLES 19,449,232 ------------ HOUSEHOLD PRODUCTS 1.0% Clorox Co. .................. 35,480 2,157,539 Colgate-Palmolive Co. ....... 29,403 1,845,332 Kimberly-Clark Corp. ........ 34,975 2,143,618 Procter & Gamble Co. ........ 31,351 2,023,393 ------------ TOTAL HOUSEHOLD PRODUCTS 8,169,882 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.7% AES Corp.(The)*.............. 188,919 1,505,684 Constellation Energy Group, Inc. ..................... 94,066 2,277,338 Dynegy, Inc. -- Class A*..... 619,520 2,255,053 ------------ TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 6,038,075 ------------ INDUSTRIAL CONGLOMERATES 0.8% 3M Co. ...................... 32,139 2,066,538 General Electric Co. ........ 91,425 1,783,702 Textron, Inc. ............... 70,866 1,254,328 Tyco International, Ltd. .... 56,496 1,428,219 ------------ TOTAL INDUSTRIAL CONGLOMERATES 6,532,787 ------------ INSURANCE 3.6% AFLAC, Inc. ................. 35,267 1,561,623 Allstate Corp. .............. 49,092 1,295,538 American International Group, Inc. ..................... 846,523 1,616,859 Aon Corp. ................... 47,697 2,017,583 Assurant, Inc. .............. 44,359 1,130,267 Chubb Corp. ................. 38,941 2,017,923 Cincinnati Financial Corp. .. 74,374 1,932,980 Genworth Financial, Inc. -- Class A........... 247,978 1,200,214 Hartford Financial Services Group, Inc. .............. 39,578 408,445 Lincoln National Corp. ...... 43,502 749,974 Loews Corp. ................. 56,727 1,883,904 Marsh & McLennan Cos., Inc. ..................... 67,650 1,983,498 MBIA, Inc. .................. 156,793 1,541,275 MetLife, Inc. ............... 35,894 1,192,399 Principal Financial Group, Inc. ..................... 52,190 991,088 Progressive Corp. ........... 134,724 1,922,511 Prudential Financial, Inc. .. 26,833 804,990 Torchmark Corp. ............. 38,264 1,598,287 Travelers Cos., Inc.(The).... 44,489 1,893,007 Unum Group................... 90,571 1,426,493 XL Capital, Ltd. -- Class A.. 125,058 1,213,063 ------------ TOTAL INSURANCE 30,381,921 ------------ INTERNET & CATALOG RETAIL 0.4% Amazon.com, Inc.* ........... 29,613 1,695,048 Expedia, Inc.* .............. 143,281 1,362,602 ------------ TOTAL INTERNET & CATALOG RETAIL 3,057,650 ------------ INTERNET SOFTWARE & SERVICES 1.0% Akamai Technologies, Inc.* .. 133,764 1,923,526 eBay, Inc.* ................. 98,622 1,505,958 Google, Inc. -- Class A*..... 5,155 1,852,501 VeriSign, Inc.* ............. 90,803 1,925,024 Yahoo!, Inc.* ............... 108,876 1,395,790 ------------ TOTAL INTERNET SOFTWARE & SERVICES 8,602,799 ------------ IT SERVICES 2.3% Affiliated Computer Services, Inc. -- Class A*.......... 45,513 1,866,033 Automatic Data Processing, Inc. ..................... 51,990 1,817,050 Cognizant Technology Solutions Corp. -- Class A*........................ 94,086 1,806,451 Computer Sciences Corp.* .... 53,212 1,604,874 Convergys Corp.* ............ 148,352 1,140,827 Fidelity National Information Services, Inc. ........... 112,182 1,692,826 Fiserv, Inc.* ............... 44,877 1,497,097 Mastercard, Inc. -- Class A.. 10,888 1,609,464 Paychex, Inc. ............... 70,591 2,014,667 Total System Services, Inc. ..................... 129,599 1,780,690 Unisys Corp.* ............... 702,480 1,067,770 Western Union Co. ........... 90,079 1,374,606 ------------ TOTAL IT SERVICES 19,272,355 ------------ LEISURE EQUIPMENT & PRODUCTS 0.6% Eastman Kodak Co. ........... 143,026 1,312,979 Hasbro, Inc. ................ 61,277 1,781,322 Mattel, Inc.* ............... 121,078 1,818,592 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 4,912,893 ------------ LIFE SCIENCES TOOLS & SERVICES 1.0% Applied Biosystems Inc. ..... 63,297 1,951,446 Millipore Corp.* ............ 32,512 1,687,048 PerkinElmer, Inc. ........... 87,585 1,571,275 Thermo Fisher Scientific Inc.* .................... 40,240 1,633,744 Waters Corp.* ............... 40,822 1,788,004 ------------ TOTAL LIFE SCIENCES TOOLS & SERVICES 8,631,517 ------------ MACHINERY 2.4% Caterpillar, Inc. ........... 34,718 1,325,186 Cummins, Inc. ............... 41,709 1,078,178 Danaher Corp. ............... 29,579 1,752,260
12 See Notes to Financial Statements. Rydex S&P Equal Weight ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) Deere & Co. ................. 36,573 $1,410,255 Dover Corp. ................. 51,956 1,650,642 Eaton Corp. ................. 33,450 1,491,870 Flowserve Corp. ............. 1,040 59,197 Illinois Tool Works, Inc. ... 48,490 1,619,081 Ingersoll-Rand Co., Ltd. -- Class A........... 65,613 1,210,560 ITT Corp. ................... 38,462 1,711,559 Manitowoc Co., Inc. ......... 124,987 1,229,872 PACCAR, Inc. ................ 53,268 1,557,556 Pall Corp. .................. 66,146 1,746,916 Parker-Hannifin Corp. ....... 40,073 1,553,630 Terex Corp.* ................ 67,242 1,122,269 ------------ TOTAL MACHINERY 20,519,031 ------------ MEDIA 2.9% CBS Corp. -- Class B......... 144,711 1,405,144 Comcast Corp. -- Class A..... 110,773 1,745,782 DIRECTV Group, Inc.(The)*.... 90,690 1,985,204 Gannett Co., Inc. ........... 125,260 1,377,860 Interpublic Group of Cos., Inc.* .................... 283,651 1,472,149 McGraw-Hill Cos., Inc. ...... 56,350 1,512,434 Meredith Corp. .............. 76,884 1,489,243 New York Times Co. -- Class A......................... 148,589 1,485,890 News Corp. -- Class A........ 173,933 1,850,647 Omnicom Group, Inc. ......... 55,696 1,645,260 Scripps Networks Interactive -- Class A.... 53,897 1,530,675 Time Warner, Inc. ........... 162,885 1,643,510 Viacom, Inc. -- Class B*..... 87,712 1,773,537 Walt Disney Co.(The)......... 67,670 1,752,653 Washington Post Co. -- Class B......................... 3,773 1,610,316 ------------ TOTAL MEDIA 24,280,304 ------------ METALS & MINING 1.3% AK Steel Holding Corp. ...... 79,090 1,100,933 Alcoa, Inc. ................. 87,763 1,010,152 Allegheny Technologies, Inc. ..................... 56,341 1,495,290 Freeport-McMoRan Copper & Gold, Inc. ............... 33,913 986,868 Newmont Mining Corp. ........ 57,167 1,505,779 Nucor Corp. ................. 49,945 2,023,272 Titanium Metals Corp. ....... 188,795 1,757,682 United States Steel Corp. ... 24,155 890,836 ------------ TOTAL METALS & MINING 10,770,812 ------------ MULTI-UTILITIES 3.0% Ameren Corp. ................ 54,790 1,777,936 CenterPoint Energy, Inc. .... 162,144 1,867,899 CMS Energy Corp. ............ 182,625 1,871,906 Consolidated Edison, Inc. ... 49,261 2,133,987 Dominion Resources, Inc. .... 54,178 1,965,578 DTE Energy Co. .............. 53,871 1,901,646 Integrys Energy Group, Inc. ..................... 43,893 2,092,379 NiSource, Inc. .............. 148,064 1,918,910 PG&E Corp. .................. 56,205 2,061,037 Public Service Enterprise Group, Inc. .............. 65,920 1,855,648 Sempra Energy................ 43,814 1,866,038 TECO Energy, Inc. ........... 135,455 1,563,151 Wisconsin Energy Corp. ...... 16,750 728,625 Xcel Energy, Inc. ........... 103,986 1,811,436 ------------ TOTAL MULTI-UTILITIES 25,416,176 ------------ MULTILINE RETAIL 1.5% Big Lots, Inc.* ............. 70,834 1,730,475 Family Dollar Stores, Inc. .. 78,686 2,117,440 J.C. Penney Co., Inc. ....... 58,042 1,388,365 Kohl's Corp.* ............... 44,192 1,552,465 Macy's, Inc. ................ 113,809 1,398,713 Nordstrom, Inc. ............. 67,538 1,221,762 Sears Holdings Corp.* ....... 21,087 1,217,563 Target Corp. ................ 40,720 1,633,686 ------------ TOTAL MULTILINE RETAIL 12,260,469 ------------ OFFICE ELECTRONICS 0.2% Xerox Corp. ................. 180,313 1,446,110 ------------ TOTAL OFFICE ELECTRONICS 1,446,110 ------------ OIL, GAS & CONSUMABLE FUELS 5.4% Anadarko Petroleum Corp. .... 42,652 1,505,616 Apache Corp. ................ 20,033 1,649,317 Cabot Oil & Gas Corp. ....... 59,975 1,683,498 Chesapeake Energy Corp. ..... 58,891 1,293,835 Chevron Corp. ............... 27,348 2,040,161 ConocoPhillips............... 31,388 1,632,804 CONSOL Energy, Inc. ......... 40,362 1,266,963 Devon Energy Corp. .......... 23,133 1,870,534 El Paso Corp. ............... 170,692 1,655,712 EOG Resources, Inc. ......... 24,535 1,985,372 Exxon Mobil Corp. ........... 29,144 2,160,153 Hess Corp. .................. 26,822 1,614,953 Marathon Oil Corp. .......... 56,880 1,655,208 Massey Energy Co. ........... 62,281 1,438,068 Murphy Oil Corp. ............ 34,838 1,764,196 Noble Energy, Inc. .......... 39,140 2,028,235 Occidental Petroleum Corp. .. 31,949 1,774,447 Peabody Energy Corp. ........ 42,563 1,468,849 Pioneer Natural Resources Co. ...................... 40,642 1,131,067 Range Resources Corp. ....... 45,847 1,935,660 Southwestern Energy Co.* .... 70,074 2,496,036 Spectra Energy Corp. ........ 92,162 1,781,492 Sunoco, Inc. ................ 55,121 1,681,191 Tesoro Corp. ................ 131,111 1,267,843 Valero Energy Corp. ......... 70,533 1,451,569 Williams Cos., Inc. ......... 91,318 1,914,939 XTO Energy, Inc. ............ 44,607 1,603,622 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 45,751,340 ------------ PAPER & FOREST PRODUCTS 0.5% International Paper Co. ..... 82,828 1,426,298 MeadWestvaco Corp. .......... 91,365 1,281,851 Weyerhaeuser Co. ............ 39,439 1,507,359 ------------ TOTAL PAPER & FOREST PRODUCTS 4,215,508 ------------
13 ANNUAL REPORT See Notes to Financial Statements. Rydex S&P Equal Weight ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONTINUED) PERSONAL PRODUCTS 0.3% Avon Products, Inc. ......... 56,495 $1,402,771 Estee Lauder Cos., Inc -- Class A............ 43,792 1,578,264 ------------ TOTAL PERSONAL PRODUCTS 2,981,035 ------------ PHARMACEUTICALS 3.3% Abbott Laboratories.......... 38,896 2,145,114 Allergan, Inc. .............. 39,710 1,575,296 Barr Pharmaceuticals, Inc.* .................... 33,883 2,177,322 Bristol-Myers Squibb Co. .... 108,199 2,223,489 Eli Lilly & Co. ............. 49,871 1,686,637 Forest Laboratories, Inc.* .. 80,869 1,878,587 Johnson & Johnson............ 32,002 1,963,003 King Pharmaceuticals, Inc.* .................... 220,568 1,938,793 Merck & Co., Inc. ........... 70,991 2,197,171 Mylan Inc.* ................. 192,655 1,651,053 Pfizer, Inc. ................ 125,818 2,228,237 Schering-Plough Corp. ....... 123,113 1,783,907 Watson Pharmaceuticals, Inc.* .................... 82,052 2,147,301 Wyeth........................ 59,010 1,898,942 ------------ TOTAL PHARMACEUTICALS 27,494,852 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 2.2% Apartment Investment & Management Co. -- Class A......................... 66,107 967,145 AvalonBay Communities, Inc. ..................... 22,963 1,630,832 Boston Properties, Inc. ..... 23,354 1,655,331 Developers Diversified Realty Corp. .................... 67,674 891,267 Equity Residential........... 46,036 1,608,037 General Growth Properties, Inc. ..................... 114,069 472,246 HCP, Inc. ................... 54,636 1,635,255 Host Hotels & Resorts, Inc. ..................... 132,861 1,373,783 Kimco Realty Corp. .......... 55,520 1,253,642 Plum Creek Timber Co., Inc. ..................... 40,242 1,500,222 ProLogis..................... 54,901 768,614 Public Storage, Inc. ........ 22,553 1,838,069 Simon Property Group, Inc. .. 22,751 1,525,000 Vornado Realty Trust......... 22,403 1,580,532 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 18,699,975 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1% CB Richard Ellis Group, Inc. -- Class A*.......... 165,831 1,162,475 ------------ TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 1,162,475 ------------ ROAD & RAIL 1.1% Burlington Northern Santa Fe Corp. .................... 22,886 2,038,227 CSX Corp. ................... 40,044 1,830,812 Norfolk Southern Corp. ...... 32,722 1,961,357 Ryder System, Inc. .......... 32,591 1,291,255 Union Pacific Corp. ......... 30,701 2,049,906 ------------ TOTAL ROAD & RAIL 9,171,557 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.7% Advanced Micro Devices, Inc.* .................... 428,145 1,498,508 Altera Corp. ................ 105,391 1,828,534 Analog Devices, Inc. ........ 81,358 1,737,807 Applied Materials, Inc. ..... 142,422 1,838,668 Broadcom Corp. -- Class A*... 110,180 1,881,875 Intel Corp. ................. 117,733 1,883,728 KLA-Tencor Corp. ............ 67,113 1,560,377 Linear Technology Corp. ..... 72,021 1,633,436 LSI Corp.* .................. 385,052 1,482,450 MEMC Electronic Materials, Inc.* .................... 75,793 1,393,075 Microchip Technology, Inc. .. 74,392 1,832,275 Micron Technology, Inc.* .... 530,583 2,499,046 National Semiconductor Corp. .................... 129,497 1,705,476 Novellus Systems, Inc.* ..... 108,455 1,713,589 NVIDIA Corp.* ............... 208,662 1,827,879 Teradyne, Inc.* ............. 265,390 1,353,489 Texas Instruments, Inc. ..... 99,595 1,948,078 Xilinx, Inc. ................ 94,636 1,743,195 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 31,361,485 ------------ SOFTWARE 2.6% Adobe Systems, Inc.* ........ 57,142 1,522,263 Autodesk, Inc.* ............. 67,733 1,443,390 BMC Software, Inc.* ......... 70,656 1,824,338 CA, Inc. .................... 106,375 1,893,475 Citrix Systems, Inc.* ....... 82,540 2,127,056 Compuware Corp.* ............ 229,136 1,461,888 Electronic Arts, Inc.* ...... 51,757 1,179,024 Intuit, Inc.* ............... 74,134 1,857,798 Microsoft Corp. ............. 89,763 2,004,408 Novell, Inc.* ............... 409,125 1,906,522 Oracle Corp.* ............... 120,903 2,211,316 Salesforce.com, Inc.* ....... 41,253 1,277,193 Symantec Corp.* ............. 116,736 1,468,539 ------------ TOTAL SOFTWARE 22,177,210 ------------ SPECIALTY RETAIL 3.2% Abercrombie & Fitch Co. -- Class A............ 51,427 1,489,326 AutoNation, Inc.* ........... 169,974 1,167,721 AutoZone, Inc.* ............. 17,578 2,237,504 Bed Bath & Beyond, Inc.* .... 70,983 1,829,232 Best Buy Co., Inc. .......... 54,810 1,469,456 GameStop Corp. -- Class A*... 58,916 1,613,709 Gap, Inc.(The)............... 121,136 1,567,500 Home Depot, Inc. ............ 84,014 1,981,890 Limited Brands, Inc. ........ 117,061 1,402,391 Lowe's Cos., Inc. ........... 94,016 2,040,147 Office Depot, Inc.* ......... 367,514 1,323,050 RadioShack Corp. ............ 128,284 1,624,075 Sherwin-Williams Co.(The).... 36,731 2,090,361 Staples, Inc. ............... 93,058 1,808,117 Tiffany & Co. ............... 59,337 1,628,801 TJX Cos., Inc. .............. 68,773 1,840,366 ------------ TOTAL SPECIALTY RETAIL 27,113,646 ------------ TEXTILES, APPAREL & LUXURY GOODS 1.1% Coach, Inc.* ................ 79,467 1,637,020 Jones Apparel Group, Inc. ... 117,635 1,306,925
14 See Notes to Financial Statements. Rydex S&P Equal Weight ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONCLUDED) Liz Claiborne, Inc. ......... 120,900 $985,335 NIKE, Inc. -- Class B........ 35,051 2,019,989 Polo Ralph Lauren Corp. ..... 32,120 1,515,101 V.F. Corp. .................. 27,801 1,531,835 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 8,996,205 ------------ THRIFTS & MORTGAGE FINANCE 0.3% Hudson City Bancorp, Inc. ... 110,561 2,079,652 Sovereign Bancorp, Inc.* .... 266,370 772,473 ------------ TOTAL THRIFTS & MORTGAGE FINANCE 2,852,125 ------------ TOBACCO 1.3% Altria Group, Inc. .......... 112,062 2,150,470 Lorillard, Inc. ............. 31,901 2,101,000 Philip Morris International, Inc. ..................... 44,538 1,936,067 Reynolds American, Inc. ..... 46,297 2,266,701 UST, Inc. ................... 32,968 2,228,307 ------------ TOTAL TOBACCO 10,682,545 ------------ TRADING COMPANIES & DISTRIBUTORS 0.4% Fastenal Co. ................ 42,112 1,695,429 W.W. Grainger, Inc. ......... 25,395 1,995,285 ------------ TOTAL TRADING COMPANIES & DISTRIBUTORS 3,690,714 ------------ WIRELESS TELECOMMUNICATION SERVICES 0.4% American Tower Corp. -- Class A*........................ 58,129 1,878,148 Sprint Nextel Corp. ......... 361,047 1,130,077 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 3,008,225 ------------ TOTAL COMMON STOCKS (Cost $1,399,303,692) 839,387,540 ------------ SHORT TERM INVESTMENTS 0.4% SSgA Government Money Market Fund...................... 3,561,735 3,561,735 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $3,561,735) 3,561,735 ------------ TOTAL INVESTMENTS 99.9% (Cost $1,402,865,427) 842,949,275 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 467,641 ------------ NET ASSETS--100.0% $843,416,916 ---------------------------------------------------------
* Non-Income Producing Security. 15 ANNUAL REPORT See Notes to Financial Statements. Rydex Russell Top 50 ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS 99.5% AEROSPACE & DEFENSE 2.1% Boeing Co. .................. 74,721 $3,905,667 United Technologies Corp. ... 96,767 5,318,314 ------------ TOTAL AEROSPACE & DEFENSE 9,223,981 ------------ AIR FREIGHT & LOGISTICS 0.8% United Parcel Service, Inc. -- Class B........... 68,014 3,589,779 ------------ TOTAL AIR FREIGHT & LOGISTICS 3,589,779 ------------ BEVERAGES 4.4% Coca-Cola Co.(The)........... 230,974 10,176,715 PepsiCo, Inc. ............... 157,712 8,991,161 ------------ TOTAL BEVERAGES 19,167,876 ------------ BIOTECHNOLOGY 0.9% Genentech, Inc.* ............ 46,188 3,830,833 ------------ TOTAL BIOTECHNOLOGY 3,830,833 ------------ CAPITAL MARKETS 0.8% Goldman Sachs Group, Inc.(The)................. 40,221 3,720,443 ------------ TOTAL CAPITAL MARKETS 3,720,443 ------------ CHEMICALS 1.3% Monsanto Co. ................ 54,568 4,855,461 Mosaic Co. (The)............. 15,438 608,411 ------------ TOTAL CHEMICALS 5,463,872 ------------ COMMERCIAL BANKS 3.8% U.S. Bancorp................. 173,077 5,159,425 Wells Fargo & Co. ........... 328,397 11,181,918 ------------ TOTAL COMMERCIAL BANKS 16,341,343 ------------ COMMUNICATIONS EQUIPMENT 3.8% Cisco Systems, Inc.* ........ 587,378 10,437,707 QUALCOMM, Inc. .............. 160,948 6,157,871 ------------ TOTAL COMMUNICATIONS EQUIPMENT 16,595,578 ------------ COMPUTERS & PERIPHERALS 7.2% Apple, Inc.* ................ 87,656 9,430,909 Hewlett-Packard Co. ......... 245,131 9,383,615 International Business Machines Corp. ........... 136,565 12,696,448 ------------ TOTAL COMPUTERS & PERIPHERALS 31,510,972 ------------ DIVERSIFIED FINANCIAL SERVICES 7.4% Bank of America Corp. ....... 443,050 10,708,518 Citigroup, Inc. ............. 541,341 7,389,305 JPMorgan Chase & Co. ........ 343,300 14,161,125 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 32,258,948 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 5.6% AT&T, Inc. .................. 590,747 15,814,297 Verizon Communications, Inc. ..................... 283,452 8,410,021 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 24,224,318 ------------ ELECTRIC UTILITIES 0.8% Exelon Corp. ................ 65,235 3,538,346 ------------ TOTAL ELECTRIC UTILITIES 3,538,346 ------------ ENERGY EQUIPMENT & SERVICES 1.4% Schlumberger, Ltd. .......... 118,639 6,127,704 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 6,127,704 ------------ FOOD & STAPLES RETAILING 3.9% CVS Caremark Corp. .......... 142,132 4,356,346 Wal-Mart Stores, Inc. ....... 223,093 12,450,820 ------------ TOTAL FOOD & STAPLES RETAILING 16,807,166 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 1.0% Medtronic, Inc. ............. 111,661 4,503,288 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 4,503,288 ------------ HOTELS, RESTAURANTS & LEISURE 1.5% McDonald's Corp. ............ 112,708 6,529,175 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 6,529,175 ------------ HOUSEHOLD PRODUCTS 4.5% Procter & Gamble Co. ........ 303,571 19,592,472 ------------ TOTAL HOUSEHOLD PRODUCTS 19,592,472 ------------ INDUSTRIAL CONGLOMERATES 5.5% 3M Co. ...................... 70,021 4,502,350 General Electric Co. ........ 991,108 19,336,517 ------------ TOTAL INDUSTRIAL CONGLOMERATES 23,838,867 ------------ INSURANCE 0.1% American International Group, Inc. ..................... 230,994 441,199 ------------ TOTAL INSURANCE 441,199 ------------ INTERNET SOFTWARE & SERVICES 1.9% Google, Inc. -- Class A*..... 23,551 8,463,287 ------------ TOTAL INTERNET SOFTWARE & SERVICES 8,463,287 ------------ IT SERVICES 0.6% Visa, Inc. -- Class A........ 44,513 2,463,795 ------------ TOTAL IT SERVICES 2,463,795 ------------ MEDIA 3.0% Comcast Corp. -- Class A..... 278,811 4,394,061 Time Warner, Inc. ........... 355,810 3,590,123 Walt Disney Co.(The)......... 189,454 4,906,859 ------------ TOTAL MEDIA 12,891,043 ------------ OIL, GAS & CONSUMABLE FUELS 15.4% Chevron Corp. ............... 205,670 15,342,982 ConocoPhillips............... 153,381 7,978,880 Exxon Mobil Corp. ........... 525,388 38,941,758 Occidental Petroleum Corp. .. 81,617 4,533,008 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 66,796,628 ------------
16 See Notes to Financial Statements. Rydex Russell Top 50 ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------- COMMON STOCKS (CONCLUDED) PHARMACEUTICALS 11.9% Abbott Laboratories.......... 153,459 $8,463,264 Eli Lilly & Co. ............. 99,376 3,360,896 Johnson & Johnson............ 280,225 17,189,001 Merck & Co., Inc. ........... 213,445 6,606,123 Pfizer, Inc. ................ 672,703 11,913,570 Wyeth........................ 132,581 4,266,457 ------------ TOTAL PHARMACEUTICALS 51,799,311 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.1% Intel Corp. ................. 569,556 9,112,896 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 9,112,896 ------------ SOFTWARE 5.7% Microsoft Corp. ............. 798,274 17,825,459 Oracle Corp.* ............... 387,252 7,082,839 ------------ TOTAL SOFTWARE 24,908,298 ------------ TOBACCO 2.1% Philip Morris International, Inc. ..................... 209,737 9,117,267 ------------ TOTAL TOBACCO 9,117,267 ------------ TOTAL COMMON STOCKS (Cost $589,361,152) 432,858,685 ------------ SHORT TERM INVESTMENTS 0.3% SSgA Government Money Market Fund...................... 1,360,219 1,360,219 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $1,360,219) 1,360,219 ------------ TOTAL INVESTMENTS 99.8% (Cost $590,721,371) 434,218,904 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.2% 659,151 ------------ NET ASSETS--100.0% $434,878,055 ---------------------------------------------------------
* Non-Income Producing Security. 17 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF ASSETS AND LIABILITIES October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX RUSSELL EQUAL TOP 50 WEIGHT ETF ETF -------------- ------------- ASSETS Investments at Market Value*............................. $ 842,949,275 $ 434,218,904 Receivables: Investments Sold....................................... 16,175,818 -- Fund Shares Sold....................................... -- 18,850,684 Dividends.............................................. 1,004,369 697,724 -------------- ------------- TOTAL ASSETS........................................ 860,129,462 453,767,312 -------------- ------------- LIABILITIES Payables: Investments Purchased.................................. 733,650 18,814,628 Fund Shares Repurchased................................ 15,659,960 -- Accrued Management Fees................................ 318,936 74,629 -------------- ------------- TOTAL LIABILITIES................................... 16,712,546 18,889,257 -------------- ------------- NET ASSETS............................................... $ 843,416,916 $ 434,878,055 ============== ============= NET ASSETS CONSIST OF: Paid-in Capital.......................................... $1,527,409,310 $ 624,697,707 Undistributed Net Investment Income...................... -- 838,967 Accumulated Net Realized Loss on Investment Securities... (124,076,242) (34,156,152) Net Unrealized Depreciation on Investment Securities..... (559,916,152) (156,502,467) -------------- ------------- NET ASSETS............................................... $ 843,416,916 $ 434,878,055 ============== ============= Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................................. 28,107,851 5,700,276 ============== ============= Net Asset Value, Offering Price and Repurchase Price Per Share.................................................. $ 30.01 $ 76.29 ============== ============= *Total Cost of Investments............................... $1,402,865,427 $ 590,721,371 ============== =============
18 See Notes to Financial Statements. STATEMENTS OF OPERATIONS For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX RUSSELL EQUAL TOP 50 WEIGHT ETF ETF ------------- ------------- INVESTMENT INCOME Dividends............................................... $ 27,901,027 $ 14,618,445 ------------- ------------- EXPENSES Management Fee.......................................... 5,534,323 1,140,279 ------------- ------------- Net Investment Income..................................... 22,366,704 13,478,166 ------------- ------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments............................................. (123,219,838) (32,648,089) In-kind Redemptions..................................... 84,803,993 10,498,482 ------------- ------------- Net Realized Loss.................................... (38,415,845) (22,149,607) Net Change in Unrealized Appreciation/Depreciation on: Investment Securities................................... (632,923,455) (210,678,370) ------------- ------------- Net Realized and Unrealized Loss on Investments........... (671,339,300) (232,827,977) ------------- ------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS......................................... $(648,972,596) $(219,349,811) ============= =============
19 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 ETF ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 22,366,704 $ 25,817,694 $ 13,478,166 $ 10,928,752 Net Realized Gain (Loss)......... (38,415,845) 236,861,135 (22,149,607) 27,813,824 Net Change in Unrealized Appreciation/Depreciation on Investments................... (632,923,455) (60,770,241) (210,678,370) 33,495,340 --------------- --------------- ------------- ------------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... (648,972,596) 201,908,588 (219,349,811) 72,237,916 --------------- --------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (21,971,144) (25,503,538) (13,329,460) (10,668,692) --------------- --------------- ------------- ------------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........ 619,139,869 1,286,385,367 283,203,866 451,183,675 Value of Shares Reinvested....... 39,088 214,399 22,733 3,303 Value of Shares Repurchased...... (1,282,510,869) (1,045,109,356) (297,024,052) (195,942,838) --------------- --------------- ------------- ------------- Net Increase (Decrease) in Net Assets Resulting From Shareholder Transactions...... (663,331,912) 241,490,410 (13,797,453) 255,244,140 --------------- --------------- ------------- ------------- Increase (Decrease) in Net Assets...................... (1,334,275,652) 417,895,460 (246,476,724) 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)....... $ 843,416,916 $ 2,177,692,568 $ 434,878,055 $ 681,354,779 =============== =============== ============= ============= (1) Including Undistributed Net Investment Income................ $ -- $ 602,527 $ 838,967 $ 690,261 =============== =============== ============= ============= CHANGES IN SHARES OUTSTANDING: Shares Sold...................... 14,600,000 25,750,000 3,050,000 4,150,000 Shares Reinvested................ 905 4,357 241 30 Shares Repurchased............... (29,504,000) (20,950,000) (3,200,000) (1,800,000) Shares Outstanding, Beginning of Period........................ 43,010,946 38,206,589 5,850,035 3,500,005 --------------- --------------- ------------- ------------- Shares Outstanding, End of Period........................ 28,107,851 43,010,946 5,700,276 5,850,035 =============== =============== ============= =============
20 See Notes to Financial Statements. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT ETF ----------------------------------------------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2008 2007 2006(1)(2) 2005(1) 2004(1) --------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD........................ $50.63 $46.06 $39.68 $35.70 $31.61 -------- ---------- ---------- ---------- -------- Net Investment Income*.......... 0.72 0.59 0.52 0.43 0.37 Net Realized and Unrealized Gain (Loss) on Investments......... (20.64) 4.56 6.36 3.95 4.08 -------- ---------- ---------- ---------- -------- TOTAL FROM INVESTMENT OPERATIONS.................... (19.92) 5.15 6.88 4.38 4.45 -------- ---------- ---------- ---------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income........... (0.70) (0.58) (0.50) (0.40) (0.36) -------- ---------- ---------- ---------- -------- NET ASSET VALUE AT END OF PERIOD........................ $30.01 $50.63 $46.06 $39.68 $35.70 ======== ========== ========== ========== ======== TOTAL RETURN**.................. (39.75)% 11.23% 17.42% 12.29% 14.11% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $843,417 $2,177,693 $1,759,797 $1,071,410 $485,636 RATIO TO AVERAGE NET ASSETS OF: Expenses........................ 0.40% 0.40% 0.40% 0.40% 0.40% Net Investment Income........... 1.65% 1.22% 1.21% 1.11% 1.09% Portfolio Turnover Rate+........ 32% 25% 16% 22% 55%
* 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. (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 does not include securities received or delivered from processing creations or redemptions. 21 ANNUAL REPORT See Notes to Financial Statements. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX RUSSELL TOP 50 ETF ----------------------------------------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, 2008 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**............. 2.34 2.15 1.92 0.79 Net Realized and Unrealized Gain (Loss) on Investments............. (40.20) 12.25 12.71 (0.46) -------- -------- -------- -------- TOTAL FROM INVESTMENT OPERATIONS.... (37.86) 14.40 14.63 0.33 -------- -------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (2.32) (2.08) (1.87) (0.45) -------- -------- -------- -------- NET ASSET VALUE AT END OF PERIOD.... $76.29 $116.47 $104.15 $91.39 ======== ======== ======== ======== TOTAL RETURN***..................... (32.92)% 13.96% 16.18% 0.36% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $434,878 $681,355 $364,541 $137,085 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.20% 0.20% 0.20% 0.20%**** Net Investment Income............... 2.37% 1.96% 1.98% 1.74%**** Portfolio Turnover Rate+............ 10% 8% 7% 1%
* The Fund commenced operations on May 4, 2005. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (1) Beginning with the year ended October 31, 2006, the fund was audited by Ernst & Young LLP. The previous periods were audited by another independent registered public accounting firm. + Portfolio turnover does not include securities received or delivered from processing creations or redemptions. 22 See Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS October 31, 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 October 31, 2008, the Trust offers thirty one portfolios, each of which represents a separate series of beneficial interest in the Trust (each a "Fund" and collectively the "Funds"). The financial statements herein relate to the following two funds: Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF. Rydex S&P Equal Weight ETF commenced operations on April 24, 2003 and the Rydex Russell Top 50 ETF commenced operations on May 4, 2005. The Funds' investment objective is to provide investment results that correspond generally to the performance, before fees and expenses, of an index representing publicly traded equity securities (the "Underlying Index"). Rydex S&P Equal Weight ETF tracks the S&P 500 Equal Weight Total Return Index. Rydex Russell Top 50 ETF tracks the Russell Top 50(TM) Index. The Funds seek to achieve their objective by investing in common stocks that comprise the Underlying Index. The Funds use a "replication" strategy to track the Underlying Index. "Replication" refers to investing in substantially all of the securities in the Underlying Index in approximately the same proportions as in the Underlying Index. The Funds operate as index funds and are not actively managed. Adverse performance of a security in the Funds' portfolio will ordinarily not result in the elimination of the security from the Funds' portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures at the date of the financial statements and accompanying notes and the reported amounts of increases and decreases in net assets from operations during the reporting period. Management believes that the estimates utilized in preparing the Funds' financial statements are reasonable and prudent; however, actual results could differ from these estimates. A. SECURITY VALUATION Securities listed on a domestic securities exchange are valued based on the last sale price as of the close of regular trading hours on the New York Stock Exchange or, in the absence of recorded sales, are valued at the most recent bid price. Securities for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System ("NASDAQ") are valued at the NASDAQ Official Closing Price. The Funds invest in money market mutual funds, which are valued at their Net Asset Value ("NAV"). Securities, for which market quotations are not readily available, including investments that are subject to limitations as to their sale, are valued at fair value as determined in good faith by Rydex Investments, which acts as the Funds' investment advisor (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 follow certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by 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 23 ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 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 year ended October 31, 2008, the Funds had not engaged in repurchase agreement transactions. D. FEDERAL INCOME TAXES The Funds' policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of the taxable income and capital gains, if any, to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. The Funds adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years for purposes of complying with FIN 48, and has concluded that no provision for income tax was required in the Funds' financial statements. The Funds file U.S. federal income tax returns and returns in various foreign jurisdictions in which they invest. While the statute of limitations remains open to examine the Funds' U.S. federal income tax returns filed for the fiscal years 2004 to 2007, no examinations are in progress or anticipated at this time. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for in- kind redemptions, income reclassifications from real estate investment trusts ("REITs") and losses deferred due to wash sales. In order to present paid-in-capital, undistributed net investment income (loss) and accumulated net realized gain (loss) on investments on the statement of assets and liabilities that more closely represent their tax character, certain adjustments have been made to these accounts. These adjustments have no effect on net assets or net asset value per share. The most significant of these adjustments is for net capital gains resulting from in-kind redemptions which, because they are non-taxable to the Funds, and therefore are not distributed to existing Fund shareholders, are reclassified to paid-in-capital. The in-kind net capital gains for the year ended October 31, 2008 are disclosed in each Fund's Statement of Operations. For the year ended October 31, 2008, the adjustments for the Funds were as follows:
UNDISTRIBUTED ACCUMULATED PAID-IN NET INVESTMENT NET REALIZED CAPITAL INCOME (LOSS) GAIN (LOSS) ----------- -------------- ------------- Rydex S&P Equal Weight ETF............................ $83,259,049 $(998,087) $(82,260,962) Rydex Russell Top 50 ETF.............................. 10,468,245 -- (10,468,245)
For the year ended October 31, 2008, there were no significant differences between the book basis and tax basis of net unrealized appreciation (depreciation) in value of investments other than tax deferral of losses on wash sales and the cumulative return of capital payments on REITs. At October 31, 2008, the Funds had capital loss carryforwards which may be utilized to offset any net realized capital gains expiring October 31:
2013 2014 2015 2016 ------- -------- -------- ------------ Rydex S&P Equal Weight ETF......................... $ -- $ -- $ -- $119,981,602 Rydex Russell Top 50 ETF........................... 88,468 675,404 618,363 32,651,414
The Funds did not utilize any capital loss carryforwards during the year ended October 31, 2008. The tax character of distributable earnings (accumulated losses) at October 31, 2008 were as follows:
UNDISTRIBUTED UNREALIZED UNDISTRIBUTED LONG TERM CAPITAL LOSS APPRECIATION/ ORDINARY INCOME CAPITAL GAIN CARRYFORWARD (DEPRECIATION) --------------- ------------- ------------- -------------- Rydex S&P Equal Weight ETF................ $ -- $ -- $(119,981,602) $(564,010,792) Rydex Russell Top 50 ETF.................. 838,967 -- (34,033,649) (156,624,970)
24 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- The tax character of distributions paid during 2008 were as follows:
ORDINARY LONG-TERM INCOME CAPITAL GAIN ----------- ------------ Rydex S&P Equal Weight ETF.................................... $21,971,144 $ -- Rydex Russell Top 50 ETF...................................... 13,329,460 --
The tax character of distributions paid during 2007 were as follows:
ORDINARY LONG-TERM INCOME CAPITAL GAIN ----------- ------------ Rydex S&P Equal Weight ETF.................................... $25,503,538 $ -- Rydex Russell Top 50 ETF...................................... 10,668,692 --
E. FAIR VALUE MEASUREMENT The Funds adopted Statement of Financial Accounting Standard No. 157 ("FAS 157") Fair Value Measurement which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity's financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification an acceptable fair valuation methods and applications. Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels: Level 1 -- quoted prices in active markets for identical securities. Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 -- significant unobservable inputs (including the Funds' own assumptions used to determine the fair value of investments). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table summarizes the inputs used to value the Funds' net assets as of October 31, 2008:
LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 1 OTHER LEVEL 2 OTHER LEVEL 3 OTHER INVESTMENTS FINANCIAL INVESTMENTS FINANCIAL INVESTMENTS FINANCIAL FUND IN SECURITIES INSTRUMENTS IN SECURITIES INSTRUMENTS IN SECURITIES INSTRUMENTS ---- ------------- ------------- ------------- ------------- ------------- ------------- ASSETS Rydex S&P Equal Weight ETF.................... $842,949,275 $ -- $ -- $ -- $ -- $ -- Rydex Russell Top 50 ETF.................... 434,218,904 -- -- -- -- -- LIABILITIES Rydex S&P Equal Weight ETF.................... -- -- -- -- -- -- Rydex Russell Top 50 ETF.................... -- -- -- -- -- -- FUND TOTAL ---- ------------ ASSETS Rydex S&P Equal Weight ETF.................... $842,949,275 Rydex Russell Top 50 ETF.................... $434,218,904 LIABILITIES Rydex S&P Equal Weight ETF.................... -- Rydex Russell Top 50 ETF.................... --
F. DIVIDENDS AND DISTRIBUTIONS The Funds declare and pay dividends from net investment income and distribute from net realized capital gains at least annually. G. RISK AND UNCERTAINTIES The Trust invests in various investments which are exposed to risk, such as market risk. Due to the level of risk associated with certain investments it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect amounts reported in future financial statements. The Rydex Russell Top 50 ETF is a non-diversified fund, subjecting it to a greater risk than a fund that is diversified. H. NEW ACCOUNTING PRONOUNCEMENTS In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds' financial statement disclosures. 25 ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 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 each 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 October 31, 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. Transaction fees are not charged to or paid by the Fund. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex S&P Equal Weight ETF......................................... $2,000 Rydex Russell Top 50 ETF........................................... 500
5. INVESTMENT TRANSACTIONS For the year ended October 31, 2008 the Funds had in-kind contributions and in- kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- -------------- Rydex S&P Equal Weight ETF.................................. $543,676,914 $1,205,192,890 Rydex Russell Top 50 ETF.................................... 264,636,067 278,238,097
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.................................. $450,917,154 $453,330,711 Rydex Russell Top 50 ETF.................................... 54,872,953 54,581,909
There were no purchases or sales of U.S. government or government agency obligations for the year ended October 31, 2008. 26 NOTES TO FINANCIAL STATEMENTS (concluded) -------------------------------------------------------------------------------- At October 31, 2008, the identified cost of investments in securities owned by each fund for federal income tax purposes and the gross unrealized appreciation and depreciation were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION/ COST APPRECIATION DEPRECIATION (DEPRECIATION) -------------- ------------ ------------- -------------- Rydex S&P Equal Weight ETF.................... $1,406,960,067 $6,950,848 $(570,961,640) $(564,010,792) Rydex Russell Top 50 ETF...................... 590,843,874 -- (156,624,970) (156,624,970)
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. 27 ANNUAL REPORT REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- The Board of Trustees and Shareholders of Rydex ETF Trust We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF (the "Funds"), two of the funds comprising Rydex ETF Trust (the "Trust"), as of October 31, 2008, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the two years in the period ended October 31, 2005 were audited by other auditors whose report dated December 20, 2005, expressed an unqualified opinion on those financial highlights. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF at October 31, 2008, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles. ERNST & YOUNG LOGO Boston, Massachusetts December 23, 2008 28 SUPPLEMENTAL INFORMATION (Unaudited) -------------------------------------------------------------------------------- FEDERAL INCOME TAX INFORMATION Percentage of ordinary distributions (net investment income plus short-term gains) which qualify for the corporate dividends received deduction for the fiscal year ended October 31, 2008:
PERCENTAGE ---------- Rydex S&P Equal Weight ETF............................................ 100.00% Rydex Russell Top 50 ETF.............................................. 100.00%
For the fiscal year ended October 31, 2008, the Funds designate approximately the following amounts pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates: Rydex S&P Equal Weight ETF........................................... $25,044,842 Rydex Russell Top 50 ETF............................................. 14,210,242
PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC's website at http://www.sec.gov. Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended September 30, 2008 is also available, without charge and upon request, by (i) calling 1-800-820-0888; or accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov. PROXY RESULTS Shareholders of Rydex ETF Trust voted on the following proposal at a meeting of shareholders held on October 4, 2007. The description of the proposal and number of shares voted are as follows:
SHARES VOTED SHARES VOTED SHARES VOTED FOR AGAINST ABSTAIN ------------ ------------ ------------ 1. To approve an Investment Management Advisory Agreement between Rydex ETF Trust and PADCO Advisors Inc. Rydex S&P Equal Weight ETF......................... 22,884,011 830,016 1,303,699 Rydex Russell Top 50 ETF........................... 2,834,801 21,584 30,222
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. 29 ANNUAL REPORT 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 158 VERBONCOEUR* Rydex Variable Trust - 2004 Trustee, Rydex Dynamic Funds - 2004 President (1952) Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Treasurer of Rydex Specialized Products, LLC (2005 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present). Executive Vice President of Rydex Investments (2000 to 2003) --------------------- MICHAEL P. Rydex Series Funds - 2005 150 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 2008); Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- JOHN O. DEMARET Rydex Series Funds - 1997 150 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 150 COLEHOUR Rydex Variable Trust - 1998 Trustee (1945) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2006 to present); Owner and President of Schield Management, registered investment advisor (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment advisor (1985 to 2005) --------------------- J. KENNETH Rydex Series Funds - 1995 150 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 150 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 150 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 150 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 150 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine -------------------------------------------------------------------------------- 30 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (concluded) -------------------------------------------------------------------------------- EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) Specialized Products, LLC (2005 to present); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice President of Accounting of Rydex Investments (2000 to 2003) JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Variable Trust, and Rydex (1966) Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004); Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)
* Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the Rydex Investments. 31 ANNUAL REPORT [GRAPHIC] [RYDEX INVESTMENTS(TM) LOGO] ESSENTIAL FOR MODERN MARKETS 9601 Blackwell Road - Suite 500 - Rockville, MD 20850 www.rydexinvestments.com - 800.820.0888 ETF-ANN-1008X1009 [GRAPHIC] OCTOBER 31, 2008 RYDEX ETF TRUST ANNUAL REPORT RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF RYDEX S&P MIDCAP 400 PURE VALUE ETF RYDEX S&P MIDCAP 400 PURE GROWTH ETF RYDEX S&P SMALLCAP 600 PURE VALUE ETF RYDEX S&P SMALLCAP 600 PURE GROWTH ETF RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF RYDEX S&P EQUAL WEIGHT ENERGY ETF RYDEX S&P EQUAL WEIGHT FINANCIALS ETF RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF RYDEX S&P EQUAL WEIGHT MATERIALS ETF RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF RYDEX S&P EQUAL WEIGHT UTILITIES ETF [RYDEX INVESTMENTS LOGO] TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS...... 2 FEES AND EXPENSES... 4 MANAGER'S ANALYSIS.. 5 SCHEDULE OF INVESTMENTS....... 35 STATEMENTS OF ASSETS AND LIABILITIES... 60 STATEMENTS OF OPERATIONS........ 64 STATEMENTS OF CHANGES IN NET ASSETS............ 68 FINANCIAL HIGHLIGHTS........ 76 NOTES TO FINANCIAL STATEMENTS........ 84 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S REPORT............ 92 SUPPLEMENTAL INFORMATION....... 93
1 ANNUAL REPORT -------------------------------------------------------------------------------- DEAR SHAREHOLDER: Rydex is a proud participant in the ETF space with $1.7 billion in ETF assets and more than 30 exchange traded funds. Due to their convenience, transparency and ability to provide access to difficult to reach areas of the market, ETFs can play an important role in investor portfolios. Professional investment advisors are increasingly using ETFs in their portfolios. A 2008 survey of registered investment advisors (RIAs) by Rydex AdvisorBenchmarking(TM) revealed that three-quarters of RIAs now use ETFs and that ETFs now slightly edge out the use of stocks in advisor portfolios. Rydex believes that investor knowledge is paramount when contemplating investment options. While advisor ETF use is skyrocketing, because investors still have room for education on ETFs, Rydex now offers ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help advisors educate their clients on the nuances of ETFs. The program presents information on ETF topics in simple understandable language and is available via print and online. It's also free and can be requested on WWW.RYDEXINVESTMENTS.COM web site. Market Conditions. The last 12 months proved to be the most extraordinarily difficult period for investors in nearly a century. The crisis that unfolded during the summer months hit nearly every conceivable asset class, resulting in huge declines in wealth regardless of how investors had structured their portfolios. Other than treasury bills and the U.S. dollar, no investment category was spared the panic that washed over the world's financial markets. In the U.S., the major stock market averages lost more than 20% of their value, while international markets fared worse. Emerging market stocks were hit particularly hard as shown by the nearly 60% decline in Chinese share prices. Although commodity prices rose over the period, that masks an astounding plunge from mid-summer highs. From early July -- when oil rose to nearly $150/barrel, commodities -- led by oil -- fell more than 30%. Sector selection strategies offered little respite. Only consumer staples stocks, the most defensive in the S&P 500 Sector Index series, provided some degree of protection as that index held losses to less than 1.5%. Other traditional safe havens such as utilities and health care were down between 15% -- 25% while financial stocks, which are at the epicenter of the crisis, fell nearly 43%. The events of late September completely overwhelmed everything that had come before. In an incredibly brief period, the entire global financial system seized up as the lubricant of any economy -- bank lending -- came to a complete halt. The resulting crash in global stock markets was as steep and deep as anything witnessed since the crash of 1929 and continues to this day. The Wall Street model of large, aggressive, risk-taking investment banks was completely swept aside as financial titans such as Merrill Lynch, Morgan Stanley, Goldman Sachs and Lehman Brothers collapsed, merged with, or were reborn as commercial banks. Financial dominos tumbled as a wave of commercial bank failures -- the most since the S&L crisis of the 1990s -- unfolded in the third quarter, culminating with the collapse of Washington Mutual, the largest bank failure in U.S. history. The other huge and profound shift is the nationalization of the global financial system. The takeover of Fannie Mae and Freddie Mac and AIG, the seizure of IndyMac Bank and Washington Mutual and the forced merger of Wachovia, along with blanket guarantees of mortgage-backed securities, whole loans, intra- bank loans, money market funds and bank deposits (both here and in Europe) point to a near takeover of the global financial system by national governments. In this history-making period, governments at all levels moved with unprecedented speed, scope and coordination to save the financial system and with it the global economy. In the U.S. this culminated with a $700 billion plan put forward by the U.S. Treasury to essentially buy up all the bad mortgage assets clogging the financial system. Rejection of that plan by the House of Representatives late in September sent the markets into a tailspin with the Dow suffering its biggest point drop in history and sending the index to three-year lows. Treasury bill yields fell to near zero and interest rates on longer-dated treasuries fell to a decade low in a massive flight to safety. It is not all doom and gloom, however. This environment has broken the commodity bubble and has resulted in a huge slowdown in global inflation. This helps the emerging markets, whose economies and markets have been pummeled by the rise in food and energy costs. It has also ushered in a period of dollar strength, which gives the Fed additional room to ease. Moreover, interest rates could hardly be lower and stocks are cheaper than they have been in some time. With the massive amounts of liquidity pumped into the system, stocks could rally sharply in the months ahead -- they have repeatedly shown signs of doing throughout the crisis. Having gone through at least four false bottoms so far this year -- Societe Generale, Bear Stearns, Fannie Mae /Freddie Mac and Lehman Brothers -- the question is: Can any rally be sustained? The key to that question is fairly straightforward. The allocation of credit in the bond and money markets needs to resume. No recovery in stocks is possible without it. While capital has been thrown at the markets and recovery plans announced, the mountain of bad debt is still sitting on bank balance sheets. The fuel is in place for the markets to recover -- they always do. This process is likely to be lengthy, though. Navigating through this difficult environment will require carefully thought-out investment strategies and the discipline to stay the course. 2 -------------------------------------------------------------------------------- These tumultuous markets did not leave the ETF space unscathed. According to the Investment Company Institute, over the past 12 months, while the number of ETFs on the market has increased 19% (from 586 in October 2007 to 698 in October 2008), ETF assets decreased $105.86 billion, or 18%. Despite the market's erosion of assets, with their numerous benefits, ETFs can provide a suitable choice for investors looking for convenient access to the markets. 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 innovative ETF choices to meet your investment needs. Sincerely, /s/ DAVID C. REILLY, CFA David C. Reilly, CFA Director of Portfolio Strategies 3 ANNUAL REPORT SHAREHOLDER EXPENSE EXAMPLE As a shareholder of the Rydex ETF Trust, you incur transaction costs such as creation and redemption fees or brokerage charges, and ongoing costs including advisory fees and, if applicable, distribution fees. All other Trust expenses are paid by the advisor. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example in the table is based on an investment of $1,000 invested on April 30, 2008 and held for the six months ended October 31, 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* 4/30/08 10/31/08 4/30/08 TO 10/31/08 --------- --------- ------------------- ACTUAL Rydex S&P 500 Pure Value ETF.......................... $1,000.00 $ 506.90 $1.33 Rydex S&P 500 Pure Growth ETF......................... $1,000.00 $ 572.90 $1.38 Rydex S&P MidCap 400 Pure Value ETF................... $1,000.00 $ 530.60 $1.35 Rydex S&P MidCap 400 Pure Growth ETF.................. $1,000.00 $ 599.30 $1.41 Rydex S&P SmallCap 600 Pure Value ETF................. $1,000.00 $ 576.10 $1.39 Rydex S&P SmallCap 600 Pure Growth ETF................ $1,000.00 $ 643.90 $1.45 Rydex S&P Equal Weight Consumer Discretionary ETF..... $1,000.00 $ 496.30 $1.88 Rydex S&P Equal Weight Consumer Staples ETF........... $1,000.00 $ 758.90 $2.21 Rydex S&P Equal Weight Energy ETF..................... $1,000.00 $ 501.40 $1.89 Rydex S&P Equal Weight Financials ETF................. $1,000.00 $ 429.90 $1.80 Rydex S&P Equal Weight Health Care ETF................ $1,000.00 $ 722.50 $2.16 Rydex S&P Equal Weight Industrials ETF................ $1,000.00 $ 554.60 $1.95 Rydex S&P Equal Weight Materials ETF.................. $1,000.00 $ 546.00 $1.94 Rydex S&P Equal Weight Technology ETF................. $1,000.00 $ 513.30 $1.90 Rydex S&P Equal Weight Utilities ETF.................. $1,000.00 $ 713.20 $2.15 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex S&P 500 Pure Value ETF.......................... $1,000.00 $1,023.38 $1.78 Rydex S&P 500 Pure Growth ETF......................... $1,000.00 $1,023.38 $1.78 Rydex S&P MidCap 400 Pure Value ETF................... $1,000.00 $1,023.38 $1.78 Rydex S&P MidCap 400 Pure Growth ETF.................. $1,000.00 $1,023.38 $1.78 Rydex S&P SmallCap 600 Pure Value ETF................. $1,000.00 $1,023.38 $1.78 Rydex S&P SmallCap 600 Pure Growth ETF................ $1,000.00 $1,023.38 $1.78 Rydex S&P Equal Weight Consumer Discretionary ETF..... $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Consumer Staples ETF........... $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Energy ETF..................... $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Financials ETF................. $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Health Care ETF................ $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Industrials ETF................ $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Materials ETF.................. $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Technology ETF................. $1,000.00 $1,022.62 $2.54 Rydex S&P Equal Weight Utilities ETF**................ $1,000.00 $1,022.62 $2.54
-------- * 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 over the period, multiplied by 184/366 (to reflect one-half year period). 4 RYDEX S&P 500 PURE VALUE ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P 500 Pure Value ETF returned -45.76%. Over the year, its benchmark, the S&P 500/CitiGroup Pure Value Total Return Index, returned -45.68%, underperforming the counterpart S&P 500 Value Index, by almost 8%. The traditional S&P 500 Value Index delivered a -38.07 total return. Large-cap value was the hardest hit of the growth and style boxes (for both pure and traditional style versions). The pure style weighting called for a larger allocation to the hard-hit financial and consumer discretionary sectors, which were the biggest reasons for the underperformance. Within these sectors, the banking and retail industries were dealt particularly tough blows. The fund had an overweighting to Washington Mutual (WAMU), which suffered a staggering 99.88% loss. On the retailing side, the pure style weighting to fashion and home furnishings retailer Dillard's (DDS) also dragged on performance. CUMULATIVE FUND PERFORMANCE: MARCH 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 /CITIGRPUP RYDEX S&P PURE VALUE S&P 500 500 PURE TOTAL RETURN VALUE TOTAL VALUE ETF(A) INDEX(B) RETURN INDEX(C) ------------ -------------- --------------- 3/1/2006 10000 9998 9999 3/2/2006 9956 9954 9984 3/3/2006 9936 9935 9964 3/6/2006 9869 9868 9896 3/7/2006 9839 9835 9876 3/8/2006 9853 9850 9886 3/9/2006 9823 9820 9847 3/10/2006 9923 9920 9927 3/13/2006 9950 9948 9955 3/14/2006 10067 10066 10069 3/15/2006 10124 10121 10122 3/16/2006 10174 10173 10148 3/17/2006 10194 10194 10159 3/20/2006 10154 10152 10132 3/21/2006 10100 10099 10063 3/22/2006 10164 10162 10136 3/23/2006 10151 10149 10110 3/24/2006 10167 10167 10126 3/27/2006 10171 10169 10127 3/28/2006 10107 10107 10056 3/29/2006 10184 10182 10141 3/30/2006 10110 10108 10110 3/31/2006 10070 10068 10076 4/3/2006 10110 10107 10112 4/4/2006 10184 10181 10189 4/5/2006 10241 10241 10247 4/6/2006 10208 10206 10230 4/7/2006 10100 10099 10124 4/10/2006 10090 10087 10130 4/11/2006 10007 10006 10053 4/12/2006 10050 10050 10075 4/13/2006 10050 10049 10082 4/14/2006 10050 10049 10082 4/17/2006 10044 10041 10065 4/18/2006 10241 10242 10262 4/19/2006 10278 10278 10279 4/20/2006 10311 10310 10297 4/21/2006 10308 10309 10304 4/24/2006 10291 10291 10281 4/25/2006 10231 10230 10221 4/26/2006 10308 10309 10258 4/27/2006 10345 10346 10307 4/28/2006 10378 10380 10357 5/1/2006 10352 10353 10312 5/2/2006 10439 10440 10397 5/3/2006 10398 10401 10372 5/4/2006 10432 10433 10415 5/5/2006 10542 10545 10533 5/8/2006 10566 10569 10521 5/9/2006 10569 10572 10536 5/10/2006 10606 10609 10534 5/11/2006 10465 10466 10402 5/12/2006 10325 10326 10272 5/15/2006 10325 10327 10278 5/16/2006 10278 10281 10265 5/17/2006 10094 10096 10076 5/18/2006 10033 10033 10000 5/19/2006 10107 10105 10054 5/22/2006 10077 10076 10013 5/23/2006 10020 10021 9970 5/24/2006 10020 10020 9965 5/25/2006 10171 10170 10081 5/26/2006 10268 10266 10159 5/29/2006 10268 10266 10159 5/30/2006 10094 10092 10001 5/31/2006 10218 10216 10103 6/1/2006 10362 10361 10237 6/2/2006 10368 10367 10268 6/5/2006 10184 10184 10082 6/6/2006 10147 10149 10060 6/7/2006 10090 10091 9998 6/8/2006 10114 10115 10004 6/9/2006 10104 10104 9965 6/12/2006 9980 9982 9837 6/13/2006 9853 9852 9710 6/14/2006 9879 9877 9742 6/15/2006 10121 10123 9974 6/16/2006 10070 10073 9936 6/19/2006 9980 9980 9844 6/20/2006 9980 9980 9850 6/21/2006 10077 10078 9947 6/22/2006 10057 10058 9905 6/23/2006 10064 10067 9894 6/26/2006 10131 10133 9956 6/27/2006 10027 10027 9866 6/28/2006 10084 10086 9928 6/29/2006 10285 10291 10147 6/30/2006 10315 10321 10137 7/3/2006 10368 10375 10226 7/4/2006 10368 10375 10226 7/5/2006 10275 10279 10157 7/6/2006 10285 10291 10179 7/7/2006 10248 10254 10117 7/10/2006 10295 10301 10136 7/11/2006 10318 10326 10185 7/12/2006 10218 10225 10079 7/13/2006 10057 10061 9929 7/14/2006 10000 10004 9881 7/17/2006 9977 9982 9860 7/18/2006 9990 9996 9884 7/19/2006 10154 10160 10089 7/20/2006 10064 10070 10001 7/21/2006 9993 10000 9922 7/24/2006 10147 10155 10083 7/25/2006 10241 10248 10154 7/26/2006 10248 10254 10156 7/27/2006 10157 10165 10121 7/28/2006 10268 10277 10248 7/31/2006 10264 10271 10239 8/1/2006 10194 10202 10197 8/2/2006 10254 10263 10260 8/3/2006 10315 10321 10284 8/4/2006 10298 10307 10276 8/7/2006 10268 10277 10240 8/8/2006 10238 10245 10196 8/9/2006 10167 10174 10129 8/10/2006 10204 10212 10174 8/11/2006 10164 10171 10134 8/14/2006 10191 10199 10139 8/15/2006 10328 10339 10287 8/16/2006 10415 10427 10363 8/17/2006 10418 10428 10374 8/18/2006 10432 10441 10402 8/21/2006 10375 10386 10367 8/22/2006 10395 10406 10377 8/23/2006 10331 10342 10334 8/24/2006 10328 10337 10346 8/25/2006 10321 10332 10333 8/28/2006 10385 10397 10383 8/29/2006 10415 10426 10393 8/30/2006 10395 10406 10387 8/31/2006 10435 10448 10395 9/1/2006 10485 10498 10452 9/4/2006 10485 10498 10452 9/5/2006 10506 10517 10476 9/6/2006 10425 10436 10380 9/7/2006 10385 10395 10327 9/8/2006 10442 10455 10364 9/11/2006 10425 10439 10350 9/12/2006 10549 10562 10449 9/13/2006 10603 10618 10509 9/14/2006 10566 10579 10494 9/15/2006 10548 10564 10509 9/18/2006 10538 10552 10523 9/19/2006 10518 10532 10510 9/20/2006 10569 10584 10561 9/21/2006 10481 10497 10505 9/22/2006 10455 10470 10493 9/25/2006 10562 10577 10592 9/26/2006 10642 10658 10674 9/27/2006 10656 10673 10668 9/28/2006 10672 10689 10690 9/29/2006 10622 10638 10672 10/2/2006 10625 10643 10651 10/3/2006 10656 10671 10682 10/4/2006 10759 10778 10794 10/5/2006 10759 10778 10818 10/6/2006 10696 10712 10785 10/9/2006 10733 10750 10804 10/10/2006 10783 10803 10832 10/11/2006 10803 10821 10813 10/12/2006 10910 10928 10918 10/13/2006 10950 10969 10955 10/16/2006 10994 11013 10975 10/17/2006 10954 10973 10936 10/18/2006 10964 10986 10939 10/19/2006 10964 10984 10945 10/20/2006 10957 10977 10943 10/23/2006 11027 11050 11011 10/24/2006 11067 11091 11028 10/25/2006 11081 11104 11061 10/26/2006 11131 11155 11117 10/27/2006 11041 11062 11029 10/30/2006 11067 11090 11032 10/31/2006 11027 11051 11028 11/1/2006 10980 11001 10949 11/2/2006 10960 10983 10943 11/3/2006 10899 10921 10917 11/6/2006 11014 11038 11038 11/7/2006 11027 11050 11062 11/8/2006 11071 11093 11103 11/9/2006 11031 11053 11054 11/10/2006 11085 11109 11080 11/13/2006 11112 11137 11114 11/14/2006 11203 11228 11171 11/15/2006 11213 11238 11183 11/16/2006 11247 11273 11212 11/17/2006 11226 11252 11215 11/20/2006 11226 11252 11219 11/21/2006 11250 11277 11232 11/22/2006 11267 11293 11249 11/23/2006 11267 11293 11249 11/24/2006 11253 11281 11219 11/27/2006 11098 11124 11069 11/28/2006 11115 11143 11098 11/29/2006 11257 11284 11214 11/30/2006 11287 11315 11226 12/1/2006 11250 11277 11192 12/4/2006 11385 11415 11313 12/5/2006 11419 11449 11366 12/6/2006 11402 11433 11363 12/7/2006 11358 11388 11327 12/8/2006 11375 11406 11353 12/11/2006 11409 11441 11391 12/12/2006 11402 11431 11384 12/13/2006 11405 11437 11395 12/14/2006 11500 11533 11489 12/15/2006 11493 11524 11507 12/18/2006 11439 11473 11493 12/19/2006 11453 11486 11507 12/20/2006 11469 11506 11511 12/21/2006 11432 11469 11476 12/22/2006 11405 11440 11419 12/25/2006 11405 11440 11419 12/26/2006 11469 11506 11479 12/27/2006 11559 11596 11572 12/28/2006 11529 11564 11549 12/29/2006 11481 11517 11496 1/1/2007 11481 11517 11496 1/2/2007 11481 11517 11496 1/3/2007 11505 11541 11495 1/4/2007 11488 11524 11488 1/5/2007 11383 11417 11397 1/8/2007 11404 11439 11431 1/9/2007 11390 11426 11420 1/10/2007 11397 11431 11448 1/11/2007 11451 11487 11514 1/12/2007 11465 11500 11558 1/15/2007 11465 11500 11558 1/16/2007 11482 11518 11588 1/17/2007 11461 11497 11566 1/18/2007 11465 11500 11552 1/19/2007 11533 11569 11580 1/22/2007 11502 11539 11538 1/23/2007 11560 11598 11584 1/24/2007 11652 11690 11685 1/25/2007 11577 11616 11554 1/26/2007 11614 11651 11552 1/29/2007 11611 11650 11537 1/30/2007 11672 11710 11611 1/31/2007 11733 11772 11699 2/1/2007 11818 11857 11765 2/2/2007 11852 11891 11785 2/5/2007 11862 11904 11784 2/6/2007 11923 11963 11801 2/7/2007 11954 11995 11821 2/8/2007 11961 12003 11798 2/9/2007 11913 11954 11714 2/12/2007 11882 11925 11686 2/13/2007 12012 12053 11798 2/14/2007 12076 12119 11890 2/15/2007 12100 12143 11891 2/16/2007 12113 12159 11885 2/19/2007 12113 12159 11885 2/20/2007 12164 12208 11920 2/21/2007 12151 12197 11903 2/22/2007 12127 12172 11889 2/23/2007 12107 12152 11838 2/26/2007 12141 12188 11839 2/27/2007 11733 11776 11427 2/28/2007 11784 11828 11501 3/1/2007 11757 11799 11481 3/2/2007 11601 11642 11340 3/5/2007 11451 11493 11211 3/6/2007 11621 11662 11396 3/7/2007 11587 11630 11364 3/8/2007 11689 11731 11460 3/9/2007 11716 11760 11478 3/12/2007 11740 11785 11518 3/13/2007 11516 11558 11269 3/14/2007 11563 11605 11335 3/15/2007 11638 11682 11395 3/16/2007 11586 11631 11349 3/19/2007 11712 11755 11476 3/20/2007 11810 11856 11554 3/21/2007 11984 12030 11764 3/22/2007 11970 12016 11745 3/23/2007 12014 12061 11767 3/26/2007 12028 12075 11772 3/27/2007 11977 12024 11702 3/28/2007 11902 11950 11605 3/29/2007 11933 11979 11661 3/30/2007 11922 11970 11650 4/2/2007 11991 12038 11670 4/3/2007 12069 12120 11777 4/4/2007 12049 12097 11771 4/5/2007 12066 12117 11812 4/6/2007 12066 12117 11812 4/9/2007 12083 12133 11826 4/10/2007 12103 12153 11858 4/11/2007 12038 12089 11781 4/12/2007 12079 12131 11837 4/13/2007 12103 12153 11882 4/16/2007 12226 12277 12016 4/17/2007 12223 12275 12019 4/18/2007 12260 12313 12058 4/19/2007 12253 12305 12051 4/20/2007 12366 12421 12156 4/23/2007 12363 12416 12131 4/24/2007 12373 12427 12123 4/25/2007 12496 12550 12252 4/26/2007 12489 12545 12233 4/27/2007 12462 12517 12229 4/30/2007 12335 12390 12139 5/1/2007 12404 12458 12169 5/2/2007 12503 12557 12252 5/3/2007 12543 12600 12316 5/4/2007 12571 12627 12352 5/7/2007 12615 12673 12393 5/8/2007 12612 12669 12371 5/9/2007 12663 12721 12432 5/10/2007 12496 12553 12264 5/11/2007 12591 12649 12385 5/14/2007 12601 12658 12370 5/15/2007 12591 12650 12374 5/16/2007 12673 12732 12484 5/17/2007 12663 12721 12474 5/18/2007 12728 12787 12541 5/21/2007 12755 12816 12563 5/22/2007 12745 12803 12559 5/23/2007 12690 12750 12546 5/24/2007 12526 12583 12420 5/25/2007 12574 12634 12486 5/28/2007 12574 12634 12486 5/29/2007 12598 12656 12507 5/30/2007 12677 12736 12611 5/31/2007 12683 12745 12603 6/1/2007 12755 12817 12644 6/4/2007 12776 12838 12650 6/5/2007 12690 12751 12568 6/6/2007 12571 12631 12462 6/7/2007 12315 12373 12238 6/8/2007 12451 12511 12388 6/11/2007 12485 12545 12409 6/12/2007 12349 12407 12263 6/13/2007 12540 12600 12473 6/14/2007 12584 12646 12524 6/15/2007 12684 12746 12601 6/18/2007 12653 12714 12578 6/19/2007 12667 12728 12618 6/20/2007 12503 12563 12434 6/21/2007 12581 12641 12511 6/22/2007 12441 12502 12344 6/25/2007 12411 12470 12301 6/26/2007 12342 12402 12253 6/27/2007 12448 12511 12371 6/28/2007 12489 12552 12365 6/29/2007 12465 12527 12344 7/2/2007 12637 12701 12498 7/3/2007 12664 12728 12548 7/4/2007 12664 12728 12548 7/5/2007 12620 12683 12530 7/6/2007 12626 12692 12559 7/9/2007 12637 12703 12564 7/10/2007 12428 12490 12361 7/11/2007 12486 12549 12440 7/12/2007 12695 12762 12690 7/13/2007 12757 12822 12737 7/16/2007 12678 12743 12709 7/17/2007 12668 12734 12710 7/18/2007 12633 12700 12657 7/19/2007 12688 12755 12697 7/20/2007 12469 12535 12521 7/23/2007 12506 12571 12582 7/24/2007 12184 12246 12306 7/25/2007 12187 12250 12352 7/26/2007 11862 11923 12048 7/27/2007 11677 11736 11858 7/30/2007 11848 11908 11998 7/31/2007 11731 11791 11858 8/1/2007 11803 11863 11939 8/2/2007 11838 11898 11997 8/3/2007 11419 11478 11646 8/6/2007 11721 11782 11954 8/7/2007 11821 11881 12030 8/8/2007 11906 11970 12187 8/9/2007 11505 11565 11792 8/10/2007 11594 11653 11797 8/13/2007 11649 11711 11820 8/14/2007 11378 11437 11586 8/15/2007 11193 11249 11424 8/16/2007 11262 11320 11527 8/17/2007 11529 11588 11830 8/20/2007 11557 11618 11833 8/21/2007 11622 11683 11858 8/22/2007 11769 11833 12010 8/23/2007 11735 11796 11990 8/24/2007 11862 11928 12119 8/27/2007 11687 11749 11995 8/28/2007 11378 11436 11676 8/29/2007 11653 11717 11949 8/30/2007 11560 11621 11871 8/31/2007 11697 11762 12018 9/3/2007 11697 11762 12018 9/4/2007 11800 11866 12148 9/5/2007 11601 11663 11975 9/6/2007 11629 11691 12031 9/7/2007 11430 11491 11825 9/10/2007 11364 11424 11806 9/11/2007 11491 11555 11957 9/12/2007 11481 11543 11950 9/13/2007 11574 11639 12073 9/14/2007 11591 11654 12070 9/17/2007 11560 11624 12007 9/18/2007 11920 11988 12397 9/19/2007 12009 12079 12470 9/20/2007 11855 11922 12363 9/21/2007 11891 11959 12423 9/24/2007 11809 11877 12341 9/25/2007 11771 11838 12326 9/26/2007 11874 11944 12395 9/27/2007 11877 11945 12444 9/28/2007 11812 11879 12391 10/1/2007 11940 12010 12572 10/2/2007 11974 12044 12594 10/3/2007 11950 12019 12545 10/4/2007 11978 12047 12584 10/5/2007 12112 12186 12712 10/8/2007 12047 12118 12655 10/9/2007 12140 12212 12745 10/10/2007 12095 12167 12698 10/11/2007 12071 12143 12646 10/12/2007 12133 12205 12687 10/15/2007 11991 12065 12570 10/16/2007 11857 11926 12460 10/17/2007 11836 11907 12487 10/18/2007 11809 11877 12454 10/19/2007 11529 11596 12129 10/22/2007 11577 11647 12182 10/23/2007 11608 11678 12281 10/24/2007 11588 11655 12234 10/25/2007 11605 11673 12234 10/26/2007 11746 11817 12429 10/29/2007 11778 11850 12457 10/30/2007 11743 11813 12376 10/31/2007 11888 11959 12521 11/1/2007 11567 11625 12164 11/2/2007 11564 11620 12135 11/5/2007 11505 11556 12047 11/6/2007 11622 11680 12185 11/7/2007 11239 11296 11798 11/8/2007 11353 11411 11843 11/9/2007 11229 11287 11711 11/12/2007 11139 11199 11601 11/13/2007 11412 11477 11960 11/14/2007 11326 11386 11872 11/15/2007 11167 11223 11688 11/16/2007 11143 11194 11718 11/19/2007 10912 10954 11473 11/20/2007 10912 10955 11492 11/21/2007 10781 10826 11304 11/22/2007 10781 10826 11304 11/23/2007 10956 11008 11515 11/26/2007 10722 10769 11214 11/27/2007 10836 10890 11390 11/28/2007 11174 11236 11758 11/29/2007 11146 11214 11758 11/30/2007 11315 11394 11913 12/3/2007 11267 11343 11847 12/4/2007 11195 11269 11752 12/5/2007 11353 11430 11935 12/6/2007 11536 11615 12125 12/7/2007 11543 11624 12111 12/10/2007 11622 11704 12219 12/11/2007 11229 11306 11868 12/12/2007 11263 11340 11916 12/13/2007 11270 11348 11935 12/14/2007 11057 11131 11761 12/17/2007 10915 10987 11583 12/18/2007 11008 11080 11644 12/19/2007 10960 11031 11624 12/20/2007 10977 11051 11658 12/21/2007 11171 11249 11867 12/24/2007 11316 11403 11976 12/25/2007 11316 11403 11976 12/26/2007 11247 11333 11962 12/27/2007 11088 11172 11783 12/28/2007 10981 11061 11783 12/31/2007 11009 11092 11725 1/1/2008 11009 11092 11725 1/2/2008 10786 10865 11527 1/3/2008 10608 10685 11509 1/4/2008 10246 10317 11258 1/7/2008 10322 10395 11330 1/8/2008 9901 9969 11095 1/9/2008 9956 10026 11228 1/10/2008 10242 10314 11361 1/11/2008 10207 10278 11237 1/14/2008 10260 10334 11342 1/15/2008 9950 10018 11059 1/16/2008 10078 10149 11079 1/17/2008 9706 9769 10719 1/18/2008 9601 9666 10604 1/21/2008 9601 9666 10604 1/22/2008 9824 9891 10568 1/23/2008 10542 10619 10927 1/24/2008 10538 10615 10980 1/25/2008 10378 10455 10802 1/28/2008 10758 10839 11046 1/29/2008 10967 11051 11157 1/30/2008 10852 10935 11106 1/31/2008 11253 11343 11317 2/1/2008 11532 11625 11494 2/4/2008 11215 11303 11350 2/5/2008 10782 10865 10957 2/6/2008 10685 10765 10907 2/7/2008 10828 10912 10991 2/8/2008 10674 10754 10876 2/11/2008 10674 10755 10892 2/12/2008 10699 10781 11004 2/13/2008 10800 10883 11142 2/14/2008 10580 10661 10978 2/15/2008 10587 10666 11014 2/18/2008 10587 10666 11014 2/19/2008 10511 10588 10962 2/20/2008 10692 10774 11034 2/21/2008 10469 10546 10901 2/22/2008 10580 10660 11010 2/25/2008 10741 10822 11158 2/26/2008 10849 10933 11216 2/27/2008 10849 10933 11209 2/28/2008 10497 10574 11047 2/29/2008 10078 10149 10727 3/3/2008 9974 10043 10717 3/4/2008 9984 10053 10685 3/5/2008 9970 10038 10719 3/6/2008 9584 9644 10462 3/7/2008 9573 9631 10399 3/10/2008 9368 9421 10223 3/11/2008 9908 9973 10649 3/12/2008 9713 9774 10536 3/13/2008 9796 9858 10564 3/14/2008 9479 9536 10311 3/17/2008 9221 9274 10250 3/18/2008 9740 9804 10735 3/19/2008 9608 9670 10519 3/20/2008 10036 10108 10854 3/21/2008 10036 10108 10854 3/24/2008 10280 10354 10987 3/25/2008 10245 10320 10999 3/26/2008 9945 10014 10827 3/27/2008 9816 9881 10715 3/28/2008 9628 9689 10614 3/31/2008 9729 9794 10677 4/1/2008 10260 10335 11120 4/2/2008 10330 10406 11085 4/3/2008 10366 10439 11115 4/4/2008 10250 10322 11071 4/7/2008 10323 10400 11105 4/8/2008 10148 10218 11016 4/9/2008 9933 10001 10897 4/10/2008 9947 10015 10916 4/11/2008 9757 9823 10669 4/14/2008 9581 9646 10580 4/15/2008 9669 9734 10634 4/16/2008 9922 9993 10885 4/17/2008 10028 10098 10910 4/18/2008 10211 10284 11072 4/21/2008 10056 10129 11001 4/22/2008 9887 9957 10903 4/23/2008 9778 9846 10917 4/24/2008 10042 10115 11080 4/25/2008 10179 10252 11185 4/28/2008 10221 10294 11170 4/29/2008 10232 10306 11131 4/30/2008 10063 10135 11075 5/1/2008 10411 10489 11342 5/2/2008 10432 10509 11382 5/5/2008 10320 10397 11300 5/6/2008 10429 10507 11365 5/7/2008 10172 10245 11140 5/8/2008 10102 10177 11148 5/9/2008 10070 10145 11072 5/12/2008 10271 10348 11218 5/13/2008 10225 10302 11179 5/14/2008 10359 10435 11267 5/15/2008 10503 10581 11373 5/16/2008 10390 10469 11342 5/19/2008 10348 10425 11357 5/20/2008 10165 10241 11203 5/21/2008 9929 10002 11020 5/22/2008 9982 10055 11068 5/23/2008 9789 9861 10894 5/26/2008 9789 9861 10894 5/27/2008 9887 9960 10973 5/28/2008 9894 9966 11001 5/29/2008 10021 10097 11099 5/30/2008 9944 10018 11088 6/2/2008 9831 9903 10954 6/3/2008 9799 9873 10892 6/4/2008 9761 9833 10879 6/5/2008 9877 9951 11059 6/6/2008 9451 9518 10678 6/9/2008 9339 9406 10630 6/10/2008 9339 9405 10628 6/11/2008 9043 9106 10400 6/12/2008 9145 9208 10457 6/13/2008 9275 9341 10609 6/16/2008 9339 9406 10608 6/17/2008 9173 9238 10482 6/18/2008 9015 9076 10361 6/19/2008 9113 9178 10422 6/20/2008 8926 8986 10214 6/23/2008 8718 8793 10146 6/24/2008 8789 8863 10171 6/25/2008 8912 8988 10240 6/26/2008 8599 8667 9899 6/27/2008 8507 8574 9835 6/30/2008 8430 8496 9845 7/1/2008 8472 8540 9876 7/2/2008 8302 8368 9714 7/3/2008 8241 8306 9721 7/4/2008 8241 8306 9721 7/7/2008 8092 8154 9613 7/8/2008 8430 8497 9872 7/9/2008 8145 8208 9626 7/10/2008 8064 8125 9665 7/11/2008 7886 7944 9537 7/14/2008 7633 7691 9379 7/15/2008 7576 7632 9265 7/16/2008 8028 8091 9639 7/17/2008 8327 8394 9839 7/18/2008 8355 8423 9876 7/21/2008 8348 8415 9833 7/22/2008 8657 8727 10071 7/23/2008 8771 8843 10172 7/24/2008 8320 8385 9856 7/25/2008 8273 8338 9847 7/28/2008 8056 8120 9616 7/29/2008 8416 8484 9930 7/30/2008 8508 8577 10090 7/31/2008 8494 8564 9978 8/1/2008 8501 8572 9941 8/4/2008 8458 8529 9885 8/5/2008 8785 8859 10204 8/6/2008 8760 8834 10180 8/7/2008 8551 8622 9947 8/8/2008 8881 8956 10239 8/11/2008 9059 9138 10351 8/12/2008 8775 8850 10143 8/13/2008 8668 8739 10047 8/14/2008 8849 8924 10138 8/15/2008 8967 9044 10221 8/18/2008 8764 8838 10040 8/19/2008 8572 8642 9879 8/20/2008 8583 8653 9936 8/21/2008 8576 8646 9939 8/22/2008 8732 8808 10100 8/25/2008 8551 8622 9883 8/26/2008 8544 8616 9917 8/27/2008 8693 8765 10003 8/28/2008 8967 9044 10227 8/29/2008 8917 8995 10112 9/1/2008 8917 8995 10112 9/2/2008 9024 9103 10152 9/3/2008 9119 9201 10160 9/4/2008 8792 8869 9831 9/5/2008 8917 8996 9923 9/8/2008 9311 9394 10230 9/9/2008 8910 8986 9858 9/10/2008 8899 8978 9863 9/11/2008 9002 9080 9998 9/12/2008 9048 9129 9985 9/15/2008 8568 8640 9436 9/16/2008 8771 8847 9646 9/17/2008 8248 8317 9110 9/18/2008 8999 9078 9629 9/19/2008 9488 9575 10138 9/22/2008 8780 8857 9651 9/23/2008 8613 8688 9486 9/24/2008 8628 8701 9435 9/25/2008 8855 8934 9649 9/26/2008 8862 8941 9728 9/29/2008 7877 7934 8813 9/30/2008 8293 8360 9355 10/1/2008 8469 8539 9388 10/2/2008 8150 8217 9011 10/3/2008 7953 8014 8854 10/6/2008 7626 7683 8507 10/7/2008 7095 7146 7933 10/8/2008 6927 6978 7793 10/9/2008 6202 6242 7156 10/10/2008 6267 6310 7204 10/13/2008 6758 6805 7939 10/14/2008 6891 6940 8025 10/15/2008 6259 6303 7345 10/16/2008 6442 6487 7594 10/17/2008 6417 6460 7528 10/20/2008 6683 6731 7856 10/21/2008 6478 6523 7654 10/22/2008 6091 6131 7194 10/23/2008 6008 6047 7263 10/24/2008 5754 5788 6994 10/27/2008 5592 5627 6801 10/28/2008 6134 6175 7559 10/29/2008 6109 6148 7404 10/30/2008 6281 6326 7593 10/31/2008 6450 6494 7755
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (03/01/06) -------- --------------- RYDEX S&P 500 PURE VALUE ETF...................................... -45.76% -15.15% S&P 500/CITIGROUP PURE VALUE TOTAL RETURN INDEX................... -45.68% -14.94% S&P 500 VALUE TOTAL RETURN INDEX.................................. -38.07% -9.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 5 ANNUAL REPORT Rydex S&P 500 Pure Value ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ KB HOME 3.14% SPECTRA ENERGY CORP. 2.56% INTEGRYS ENERGY GROUP, INC. 2.50% D.R. HORTON, INC. 2.16% JONES APPAREL GROUP, INC. 1.90% NISOURCE, INC. 1.78% LENNAR CORP. -- CLASS A 1.70% NICOR, INC. 1.68% DTE ENERGY CO. 1.65% RYDER SYSTEM, INC. 1.58% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 30.08 Utilities 21.35 Consumer Discretionary 21.12 Health Care 4.98 Consumer Staples 4.95 Industrials 4.93 Materials 4.69 Telecommunication Services 3.47 Energy 2.58 Information Technology 1.85
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 6 RYDEX S&P 500 PURE GROWTH ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P 500 Pure Growth ETF returned -38.00%. Over the year, its benchmark, the S&P 500/CitiGroup Pure Growth Total Return Index, turned in a -37.89% return, which underperformed the counterpart S&P 500 Growth Total Return Index, whose return was -34.15%, by nearly 3 1/2%. In a time when few areas escaped from the downturn in the market, large-cap growth tended to weather the challenges slightly better than large-cap value. Large-cap pure growth underperformed its traditional counterpart in three out of four quarters this year. Pure growth and traditional growth strategies alike were helped the most by the consumer staples sector, while information technology was the biggest sector detractor for both. The pure style weightings to the technology and energy sectors were the biggest reasons for the underperformance. Drilling down on the energy front, the fund's underweighting to ExxonMobil (XOM) was most responsible for lagging the traditional index in energy. The pure style weighting to the financial sector, and specifically the relative underweighting to troubled insurer American International Group (AIG), helped buoy the fund. CUMULATIVE FUND PERFORMANCE: MARCH 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500/CITIGROUP RYDEX S&P PURE GROWTH S&P 500 500 PURE TOTAL RETURN GROWTH TOTAL GROWTH ETF(A) INDEX(B) RETURN INDEX(C) ------------- ----------------- --------------- 3/1/2006 10000 10000 10000 3/2/2006 9991 9992 9983 3/3/2006 9965 9966 9974 3/6/2006 9887 9889 9903 3/7/2006 9849 9850 9887 3/8/2006 9875 9877 9922 3/9/2006 9826 9826 9866 3/10/2006 9884 9884 9931 3/13/2006 9901 9903 9948 3/14/2006 10017 10019 10041 3/15/2006 10052 10055 10076 3/16/2006 10073 10075 10086 3/17/2006 10084 10087 10105 3/20/2006 10058 10061 10098 3/21/2006 10000 10002 10045 3/22/2006 10038 10039 10094 3/23/2006 10035 10038 10068 3/24/2006 10058 10061 10072 3/27/2006 10046 10048 10050 3/28/2006 10029 10031 9991 3/29/2006 10119 10122 10060 3/30/2006 10105 10107 10051 3/31/2006 10058 10062 10002 4/3/2006 10046 10050 10012 4/4/2006 10110 10114 10063 4/5/2006 10131 10134 10094 4/6/2006 10128 10131 10078 4/7/2006 10038 10042 9973 4/10/2006 10038 10041 9985 4/11/2006 9945 9949 9910 4/12/2006 9954 9959 9913 4/13/2006 9956 9962 9921 4/14/2006 9956 9962 9921 4/17/2006 9945 9949 9879 4/18/2006 10073 10077 10029 4/19/2006 10108 10113 10050 4/20/2006 10142 10149 10056 4/21/2006 10096 10100 10047 4/24/2006 10078 10083 10021 4/25/2006 10012 10017 9982 4/26/2006 10017 10023 10004 4/27/2006 9980 9984 10028 4/28/2006 9974 9978 9994 5/1/2006 9924 9930 9954 5/2/2006 9948 9953 9994 5/3/2006 9910 9914 9940 5/4/2006 9924 9930 9967 5/5/2006 10023 10028 10059 5/8/2006 10026 10031 10056 5/9/2006 9997 10002 10048 5/10/2006 9988 9994 10024 5/11/2006 9849 9854 9896 5/12/2006 9727 9734 9799 5/15/2006 9747 9752 9845 5/16/2006 9724 9730 9821 5/17/2006 9593 9598 9677 5/18/2006 9538 9544 9621 5/19/2006 9573 9580 9649 5/22/2006 9524 9530 9613 5/23/2006 9468 9475 9571 5/24/2006 9489 9493 9606 5/25/2006 9590 9595 9715 5/26/2006 9628 9636 9754 5/29/2006 9628 9636 9754 5/30/2006 9486 9493 9598 5/31/2006 9567 9573 9662 6/1/2006 9680 9688 9773 6/2/2006 9660 9667 9781 6/5/2006 9480 9488 9611 6/6/2006 9451 9458 9611 6/7/2006 9431 9437 9557 6/8/2006 9436 9444 9580 6/9/2006 9402 9411 9531 6/12/2006 9265 9273 9412 6/13/2006 9195 9204 9346 6/14/2006 9256 9265 9413 6/15/2006 9468 9476 9589 6/16/2006 9433 9441 9554 6/19/2006 9323 9331 9469 6/20/2006 9297 9305 9463 6/21/2006 9413 9422 9555 6/22/2006 9358 9368 9499 6/23/2006 9375 9384 9492 6/26/2006 9387 9397 9525 6/27/2006 9288 9297 9439 6/28/2006 9329 9338 9486 6/29/2006 9544 9555 9686 6/30/2006 9553 9563 9656 7/3/2006 9585 9596 9725 7/4/2006 9585 9596 9725 7/5/2006 9483 9493 9652 7/6/2006 9494 9507 9684 7/7/2006 9422 9435 9612 7/10/2006 9413 9425 9623 7/11/2006 9451 9463 9656 7/12/2006 9338 9348 9547 7/13/2006 9230 9241 9443 7/14/2006 9160 9171 9395 7/17/2006 9163 9174 9390 7/18/2006 9143 9154 9403 7/19/2006 9311 9324 9559 7/20/2006 9198 9209 9480 7/21/2006 9099 9111 9421 7/24/2006 9288 9299 9582 7/25/2006 9378 9390 9636 7/26/2006 9343 9357 9626 7/27/2006 9279 9292 9584 7/28/2006 9407 9420 9697 7/31/2006 9404 9419 9677 8/1/2006 9361 9373 9630 8/2/2006 9436 9450 9688 8/3/2006 9480 9494 9698 8/4/2006 9471 9484 9692 8/7/2006 9436 9450 9673 8/8/2006 9416 9430 9651 8/9/2006 9341 9356 9636 8/10/2006 9396 9411 9686 8/11/2006 9341 9356 9650 8/14/2006 9329 9346 9668 8/15/2006 9489 9505 9794 8/16/2006 9602 9621 9876 8/17/2006 9643 9661 9899 8/18/2006 9657 9677 9945 8/21/2006 9590 9607 9906 8/22/2006 9605 9624 9916 8/23/2006 9547 9566 9870 8/24/2006 9564 9584 9906 8/25/2006 9555 9575 9906 8/28/2006 9622 9642 9961 8/29/2006 9672 9691 9992 8/30/2006 9698 9718 10006 8/31/2006 9701 9720 9992 9/1/2006 9753 9772 10048 9/4/2006 9753 9772 10048 9/5/2006 9782 9801 10060 9/6/2006 9660 9679 9957 9/7/2006 9614 9633 9913 9/8/2006 9672 9691 9953 9/11/2006 9701 9722 9977 9/12/2006 9869 9890 10090 9/13/2006 9907 9930 10114 9/14/2006 9884 9907 10102 9/15/2006 9949 9972 10143 9/18/2006 9940 9963 10150 9/19/2006 9902 9924 10119 9/20/2006 9961 9982 10175 9/21/2006 9894 9915 10124 9/22/2006 9841 9862 10085 9/25/2006 9940 9963 10168 9/26/2006 9992 10016 10242 9/27/2006 9984 10007 10256 9/28/2006 9995 10018 10274 9/29/2006 9963 9988 10241 10/2/2006 9908 9933 10192 10/3/2006 9897 9920 10205 10/4/2006 10083 10108 10350 10/5/2006 10135 10160 10378 10/6/2006 10094 10119 10354 10/9/2006 10132 10157 10352 10/10/2006 10138 10164 10369 10/11/2006 10094 10118 10335 10/12/2006 10202 10229 10432 10/13/2006 10190 10217 10439 10/16/2006 10234 10259 10473 10/17/2006 10176 10201 10434 10/18/2006 10173 10199 10462 10/19/2006 10173 10198 10473 10/20/2006 10158 10185 10500 10/23/2006 10219 10246 10565 10/24/2006 10263 10289 10554 10/25/2006 10277 10306 10597 10/26/2006 10347 10376 10648 10/27/2006 10242 10271 10555 10/30/2006 10263 10291 10563 10/31/2006 10277 10305 10567 11/1/2006 10155 10184 10490 11/2/2006 10158 10185 10494 11/3/2006 10126 10153 10474 11/6/2006 10263 10290 10596 11/7/2006 10274 10302 10621 11/8/2006 10277 10307 10631 11/9/2006 10219 10248 10568 11/10/2006 10257 10285 10582 11/13/2006 10295 10324 10609 11/14/2006 10397 10427 10692 11/15/2006 10472 10502 10737 11/16/2006 10496 10527 10759 11/17/2006 10487 10519 10779 11/20/2006 10446 10478 10764 11/21/2006 10487 10517 10789 11/22/2006 10542 10575 10825 11/23/2006 10542 10575 10825 11/24/2006 10501 10532 10777 11/27/2006 10324 10354 10628 11/28/2006 10356 10388 10679 11/29/2006 10452 10483 10773 11/30/2006 10484 10517 10779 12/1/2006 10440 10471 10752 12/4/2006 10554 10586 10826 12/5/2006 10606 10638 10863 12/6/2006 10603 10637 10843 12/7/2006 10542 10574 10792 12/8/2006 10545 10577 10806 12/11/2006 10557 10590 10819 12/12/2006 10522 10553 10804 12/13/2006 10530 10564 10822 12/14/2006 10615 10647 10923 12/15/2006 10600 10635 10930 12/18/2006 10528 10561 10872 12/19/2006 10560 10595 10908 12/20/2006 10539 10573 10872 12/21/2006 10501 10535 10830 12/22/2006 10455 10489 10772 12/25/2006 10455 10489 10772 12/26/2006 10472 10506 10809 12/27/2006 10528 10562 10877 12/28/2006 10504 10541 10868 12/29/2006 10452 10487 10820 1/1/2007 10452 10487 10820 1/2/2007 10452 10487 10820 1/3/2007 10405 10441 10799 1/4/2007 10458 10494 10832 1/5/2007 10408 10445 10788 1/8/2007 10440 10477 10810 1/9/2007 10446 10481 10809 1/10/2007 10467 10503 10827 1/11/2007 10554 10590 10903 1/12/2007 10604 10640 10967 1/15/2007 10604 10640 10967 1/16/2007 10589 10628 10956 1/17/2007 10606 10644 10959 1/18/2007 10554 10592 10907 1/19/2007 10601 10637 10944 1/22/2007 10542 10582 10868 1/23/2007 10598 10635 10902 1/24/2007 10676 10716 10993 1/25/2007 10571 10611 10868 1/26/2007 10557 10595 10843 1/29/2007 10566 10605 10836 1/30/2007 10639 10678 10892 1/31/2007 10714 10755 10955 2/1/2007 10787 10826 11016 2/2/2007 10808 10847 11034 2/5/2007 10778 10819 11015 2/6/2007 10802 10843 11014 2/7/2007 10843 10884 11036 2/8/2007 10848 10889 11032 2/9/2007 10767 10807 10955 2/12/2007 10723 10765 10911 2/13/2007 10787 10828 10975 2/14/2007 10883 10924 11063 2/15/2007 10930 10971 11087 2/16/2007 10924 10966 11074 2/19/2007 10924 10966 11074 2/20/2007 10980 11021 11104 2/21/2007 10959 11002 11090 2/22/2007 10950 10993 11090 2/23/2007 10930 10974 11061 2/26/2007 10889 10931 11035 2/27/2007 10545 10588 10655 2/28/2007 10604 10646 10710 3/1/2007 10563 10605 10672 3/2/2007 10434 10477 10561 3/5/2007 10335 10377 10485 3/6/2007 10496 10538 10637 3/7/2007 10481 10523 10621 3/8/2007 10557 10600 10684 3/9/2007 10563 10604 10680 3/12/2007 10566 10609 10700 3/13/2007 10353 10396 10503 3/14/2007 10437 10479 10583 3/15/2007 10481 10523 10606 3/16/2007 10442 10484 10568 3/19/2007 10547 10590 10680 3/20/2007 10614 10658 10742 3/21/2007 10777 10823 10914 3/22/2007 10774 10820 10924 3/23/2007 10780 10828 10927 3/26/2007 10786 10833 10944 3/27/2007 10725 10772 10874 3/28/2007 10640 10687 10796 3/29/2007 10658 10703 10825 3/30/2007 10652 10699 10810 4/2/2007 10707 10754 10848 4/3/2007 10815 10864 10955 4/4/2007 10833 10880 10986 4/5/2007 10882 10933 11021 4/6/2007 10882 10933 11021 4/9/2007 10877 10926 11021 4/10/2007 10903 10951 11049 4/11/2007 10836 10885 10978 4/12/2007 10935 10985 11064 4/13/2007 10964 11016 11099 4/16/2007 11101 11152 11212 4/17/2007 11122 11175 11256 4/18/2007 11087 11139 11233 4/19/2007 11052 11104 11213 4/20/2007 11148 11201 11324 4/23/2007 11133 11187 11296 4/24/2007 11124 11178 11295 4/25/2007 11250 11304 11406 4/26/2007 11270 11325 11408 4/27/2007 11244 11299 11411 4/30/2007 11124 11177 11315 5/1/2007 11148 11202 11347 5/2/2007 11212 11267 11419 5/3/2007 11247 11302 11465 5/4/2007 11259 11315 11481 5/7/2007 11264 11321 11501 5/8/2007 11264 11319 11497 5/9/2007 11314 11370 11520 5/10/2007 11145 11200 11357 5/11/2007 11229 11284 11466 5/14/2007 11192 11246 11441 5/15/2007 11139 11193 11408 5/16/2007 11232 11289 11510 5/17/2007 11221 11277 11500 5/18/2007 11329 11386 11592 5/21/2007 11358 11415 11607 5/22/2007 11361 11418 11595 5/23/2007 11343 11402 11579 5/24/2007 11235 11291 11474 5/25/2007 11282 11340 11539 5/28/2007 11282 11340 11539 5/29/2007 11302 11361 11558 5/30/2007 11396 11453 11656 5/31/2007 11422 11481 11670 6/1/2007 11448 11508 11719 6/4/2007 11512 11572 11759 6/5/2007 11463 11523 11712 6/6/2007 11358 11418 11609 6/7/2007 11174 11233 11411 6/8/2007 11294 11354 11530 6/11/2007 11297 11357 11532 6/12/2007 11197 11255 11423 6/13/2007 11346 11407 11579 6/14/2007 11396 11456 11644 6/15/2007 11458 11518 11725 6/18/2007 11446 11507 11719 6/19/2007 11438 11499 11721 6/20/2007 11303 11364 11575 6/21/2007 11365 11425 11652 6/22/2007 11248 11308 11506 6/25/2007 11181 11241 11473 6/26/2007 11149 11207 11445 6/27/2007 11266 11325 11545 6/28/2007 11257 11318 11542 6/29/2007 11260 11319 11526 7/2/2007 11342 11403 11627 7/3/2007 11362 11424 11668 7/4/2007 11362 11424 11668 7/5/2007 11400 11461 11695 7/6/2007 11476 11539 11753 7/9/2007 11473 11536 11770 7/10/2007 11333 11394 11628 7/11/2007 11388 11452 11689 7/12/2007 11555 11620 11899 7/13/2007 11561 11626 11929 7/16/2007 11511 11575 11910 7/17/2007 11514 11578 11906 7/18/2007 11523 11588 11911 7/19/2007 11567 11632 11981 7/20/2007 11441 11506 11855 7/23/2007 11450 11514 11913 7/24/2007 11263 11327 11703 7/25/2007 11327 11391 11769 7/26/2007 11061 11125 11510 7/27/2007 10891 10953 11327 7/30/2007 10973 11037 11426 7/31/2007 10804 10867 11270 8/1/2007 10868 10932 11358 8/2/2007 10941 11005 11407 8/3/2007 10684 10745 11137 8/6/2007 10906 10970 11380 8/7/2007 10970 11037 11448 8/8/2007 11090 11155 11630 8/9/2007 10807 10869 11322 8/10/2007 10827 10892 11326 8/13/2007 10795 10858 11296 8/14/2007 10608 10669 11112 8/15/2007 10444 10505 10965 8/16/2007 10397 10460 10936 8/17/2007 10631 10696 11186 8/20/2007 10620 10682 11176 8/21/2007 10658 10720 11177 8/22/2007 10763 10829 11296 8/23/2007 10734 10799 11291 8/24/2007 10853 10920 11433 8/27/2007 10754 10820 11357 8/28/2007 10526 10589 11127 8/29/2007 10739 10805 11360 8/30/2007 10731 10798 11342 8/31/2007 10845 10912 11456 9/3/2007 10845 10912 11456 9/4/2007 10953 11020 11572 9/5/2007 10877 10946 11483 9/6/2007 10944 11011 11531 9/7/2007 10751 10817 11339 9/10/2007 10713 10779 11329 9/11/2007 10883 10951 11493 9/12/2007 10894 10963 11507 9/13/2007 10950 11018 11583 9/14/2007 10988 11058 11592 9/17/2007 10897 10967 11533 9/18/2007 11204 11277 11832 9/19/2007 11295 11367 11906 9/20/2007 11210 11283 11855 9/21/2007 11238 11313 11906 9/24/2007 11183 11254 11861 9/25/2007 11197 11270 11867 9/26/2007 11270 11345 11934 9/27/2007 11323 11398 11980 9/28/2007 11306 11379 11960 10/1/2007 11440 11516 12103 10/2/2007 11437 11514 12075 10/3/2007 11423 11498 12017 10/4/2007 11429 11504 12030 10/5/2007 11566 11644 12145 10/8/2007 11537 11615 12121 10/9/2007 11625 11704 12232 10/10/2007 11636 11716 12238 10/11/2007 11534 11613 12163 10/12/2007 11634 11713 12239 10/15/2007 11516 11595 12147 10/16/2007 11455 11533 12095 10/17/2007 11484 11562 12113 10/18/2007 11505 11583 12128 10/19/2007 11218 11294 11823 10/22/2007 11288 11363 11861 10/23/2007 11396 11473 11974 10/24/2007 11332 11409 11962 10/25/2007 11329 11405 11939 10/26/2007 11429 11507 12078 10/29/2007 11478 11558 12143 10/30/2007 11431 11511 12066 10/31/2007 11593 11668 12215 11/1/2007 11332 11402 11925 11/2/2007 11399 11470 11973 11/5/2007 11320 11391 11942 11/6/2007 11426 11499 12093 11/7/2007 11127 11197 11779 11/8/2007 11104 11172 11723 11/9/2007 10928 10999 11520 11/12/2007 10790 10858 11398 11/13/2007 11071 11143 11716 11/14/2007 10981 11052 11643 11/15/2007 10872 10939 11517 11/16/2007 10942 11010 11608 11/19/2007 10773 10831 11445 11/20/2007 10822 10882 11529 11/21/2007 10664 10719 11351 11/22/2007 10664 10719 11351 11/23/2007 10822 10882 11527 11/26/2007 10623 10675 11291 11/27/2007 10799 10853 11452 11/28/2007 11089 11142 11745 11/29/2007 11074 11128 11758 11/30/2007 11101 11166 11787 12/3/2007 11048 11114 11715 12/4/2007 11048 11111 11655 12/5/2007 11200 11265 11840 12/6/2007 11364 11429 12010 12/7/2007 11349 11417 11981 12/10/2007 11420 11488 12056 12/11/2007 11130 11194 11792 12/12/2007 11226 11294 11890 12/13/2007 11226 11291 11901 12/14/2007 11080 11146 11748 12/17/2007 10934 10997 11573 12/18/2007 11010 11074 11658 12/19/2007 10986 11051 11646 12/20/2007 11083 11149 11732 12/21/2007 11232 11298 11917 12/24/2007 11314 11383 12001 12/25/2007 11314 11383 12001 12/26/2007 11326 11396 12034 12/27/2007 11159 11226 11877 12/28/2007 11179 11249 11911 12/31/2007 11115 11183 11807 1/1/2008 11115 11183 11807 1/2/2008 10959 11027 11669 1/3/2008 10927 10995 11687 1/4/2008 10596 10661 11369 1/7/2008 10599 10665 11372 1/8/2008 10420 10483 11197 1/9/2008 10552 10617 11368 1/10/2008 10637 10702 11418 1/11/2008 10452 10518 11234 1/14/2008 10549 10614 11373 1/15/2008 10255 10318 11090 1/16/2008 10214 10278 10952 1/17/2008 9936 9998 10670 1/18/2008 9936 9998 10654 1/21/2008 9936 9998 10654 1/22/2008 9819 9879 10458 1/23/2008 9980 10043 10557 1/24/2008 10118 10181 10718 1/25/2008 9977 10038 10552 1/28/2008 10129 10192 10685 1/29/2008 10206 10270 10711 1/30/2008 10138 10203 10659 1/31/2008 10320 10386 10818 2/1/2008 10519 10587 10914 2/4/2008 10411 10478 10822 2/5/2008 10106 10171 10507 2/6/2008 9997 10060 10403 2/7/2008 10162 10225 10492 2/8/2008 10176 10242 10513 2/11/2008 10305 10373 10623 2/12/2008 10341 10406 10669 2/13/2008 10502 10571 10833 2/14/2008 10349 10417 10703 2/15/2008 10338 10406 10688 2/18/2008 10338 10406 10688 2/19/2008 10346 10416 10720 2/20/2008 10475 10546 10829 2/21/2008 10311 10378 10688 2/22/2008 10390 10460 10753 2/25/2008 10558 10628 10906 2/26/2008 10657 10730 11000 2/27/2008 10622 10692 10991 2/28/2008 10558 10627 10954 2/29/2008 10229 10297 10678 3/3/2008 10264 10333 10698 3/4/2008 10223 10291 10658 3/5/2008 10299 10367 10745 3/6/2008 10050 10116 10531 3/7/2008 9948 10014 10420 3/10/2008 9742 9806 10273 3/11/2008 10091 10158 10612 3/12/2008 10003 10068 10539 3/13/2008 10103 10170 10618 3/14/2008 9912 9979 10429 3/17/2008 9713 9777 10309 3/18/2008 10118 10185 10699 3/19/2008 9839 9904 10397 3/20/2008 10036 10104 10567 3/21/2008 10036 10104 10567 3/24/2008 10285 10356 10761 3/25/2008 10344 10415 10798 3/26/2008 10303 10373 10776 3/27/2008 10165 10235 10646 3/28/2008 10054 10123 10578 3/31/2008 10127 10197 10636 4/1/2008 10497 10572 10962 4/2/2008 10520 10595 10957 4/3/2008 10520 10597 10957 4/4/2008 10579 10655 11016 4/7/2008 10544 10621 11017 4/8/2008 10523 10599 10999 4/9/2008 10418 10494 10939 4/10/2008 10494 10570 11017 4/11/2008 10300 10375 10818 4/14/2008 10306 10379 10831 4/15/2008 10335 10409 10876 4/16/2008 10573 10652 11116 4/17/2008 10564 10643 11106 4/18/2008 10779 10861 11342 4/21/2008 10788 10869 11376 4/22/2008 10650 10729 11276 4/23/2008 10738 10818 11326 4/24/2008 10729 10808 11311 4/25/2008 10840 10923 11354 4/28/2008 10846 10930 11346 4/29/2008 10790 10872 11299 4/30/2008 10741 10823 11268 5/1/2008 10899 10982 11393 5/2/2008 10926 11010 11426 5/5/2008 10896 10980 11406 5/6/2008 11014 11101 11514 5/7/2008 10840 10924 11333 5/8/2008 10884 10969 11406 5/9/2008 10826 10909 11335 5/12/2008 10940 11026 11438 5/13/2008 10978 11064 11471 5/14/2008 11014 11100 11480 5/15/2008 11152 11239 11618 5/16/2008 11184 11273 11675 5/19/2008 11155 11245 11683 5/20/2008 11090 11178 11620 5/21/2008 10873 10959 11438 5/22/2008 10881 10967 11453 5/23/2008 10755 10840 11329 5/26/2008 10755 10840 11329 5/27/2008 10835 10920 11403 5/28/2008 10940 11027 11466 5/29/2008 10984 11072 11493 5/30/2008 11025 11114 11537 6/2/2008 10926 11013 11433 6/3/2008 10896 10983 11367 6/4/2008 10914 11000 11382 6/5/2008 11131 11222 11636 6/6/2008 10811 10896 11316 6/9/2008 10814 10900 11379 6/10/2008 10755 10841 11329 6/11/2008 10582 10664 11187 6/12/2008 10620 10702 11204 6/13/2008 10826 10911 11378 6/16/2008 10837 10924 11380 6/17/2008 10782 10868 11354 6/18/2008 10688 10772 11262 6/19/2008 10749 10837 11290 6/20/2008 10537 10618 11094 6/23/2008 10566 10652 11159 6/24/2008 10469 10552 11078 6/25/2008 10540 10624 11135 6/26/2008 10261 10340 10852 6/27/2008 10261 10342 10838 6/30/2008 10243 10322 10854 7/1/2008 10264 10344 10905 7/2/2008 10046 10123 10692 7/3/2008 10026 10102 10707 7/4/2008 10026 10102 10707 7/7/2008 9976 10053 10643 7/8/2008 10111 10188 10743 7/9/2008 9870 9944 10520 7/10/2008 9917 9991 10621 7/11/2008 9835 9910 10524 7/14/2008 9788 9861 10496 7/15/2008 9729 9801 10393 7/16/2008 9935 10011 10523 7/17/2008 10014 10092 10571 7/18/2008 9993 10070 10542 7/21/2008 10002 10079 10572 7/22/2008 10076 10155 10616 7/23/2008 10084 10164 10603 7/24/2008 9882 9958 10434 7/25/2008 9932 10008 10525 7/28/2008 9805 9883 10374 7/29/2008 9999 10078 10535 7/30/2008 10126 10206 10716 7/31/2008 9990 10069 10560 8/1/2008 9890 9970 10484 8/4/2008 9773 9851 10359 8/5/2008 10058 10139 10626 8/6/2008 10134 10215 10725 8/7/2008 10002 10082 10582 8/8/2008 10196 10279 10784 8/11/2008 10287 10370 10827 8/12/2008 10217 10301 10774 8/13/2008 10220 10304 10811 8/14/2008 10290 10373 10838 8/15/2008 10314 10397 10846 8/18/2008 10146 10230 10709 8/19/2008 10079 10162 10674 8/20/2008 10140 10224 10745 8/21/2008 10158 10242 10793 8/22/2008 10229 10314 10873 8/25/2008 10029 10112 10677 8/26/2008 10073 10156 10718 8/27/2008 10164 10249 10801 8/28/2008 10276 10359 10895 8/29/2008 10140 10224 10723 9/1/2008 10140 10224 10723 9/2/2008 10055 10138 10605 9/3/2008 10023 10105 10566 9/4/2008 9729 9808 10274 9/5/2008 9773 9855 10276 9/8/2008 9873 9955 10393 9/9/2008 9520 9598 10060 9/10/2008 9617 9697 10174 9/11/2008 9758 9838 10322 9/12/2008 9808 9890 10376 9/15/2008 9408 9487 9959 9/16/2008 9526 9605 10093 9/17/2008 9147 9221 9692 9/18/2008 9441 9520 10004 9/19/2008 9740 9823 10294 9/22/2008 9411 9489 9993 9/23/2008 9296 9372 9851 9/24/2008 9275 9352 9861 9/25/2008 9375 9454 10028 9/26/2008 9328 9406 10020 9/29/2008 8561 8628 9195 9/30/2008 8970 9044 9634 10/1/2008 8805 8878 9524 10/2/2008 8383 8451 9142 10/3/2008 8242 8309 9052 10/6/2008 7883 7947 8709 10/7/2008 7476 7536 8288 10/8/2008 7453 7513 8250 10/9/2008 6925 6979 7662 10/10/2008 6828 6883 7450 10/13/2008 7626 7689 8406 10/14/2008 7485 7546 8242 10/15/2008 6737 6791 7456 10/16/2008 7058 7114 7832 10/17/2008 7049 7107 7801 10/20/2008 7358 7418 8203 10/21/2008 7108 7165 7913 10/22/2008 6654 6707 7427 10/23/2008 6610 6664 7541 10/24/2008 6377 6429 7298 10/27/2008 6165 6214 7039 10/28/2008 6790 6845 7776 10/29/2008 6831 6887 7758 10/30/2008 7058 7116 7963 10/31/2008 7188 7245 8043
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (03/01/06) -------- --------------- RYDEX S&P 500 PURE GROWTH ETF..................................... -38.00% -11.63% S&P 500/CITIGROUP PURE GROWTH TOTAL RETURN INDEX.................. -37.89% -11.38% S&P 500 GROWTH TOTAL RETURN INDEX................................. -34.15% -7.84%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 7 ANNUAL REPORT Rydex S&P 500 Pure Growth ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ APOLLO GROUP, INC. -- CLASS A 1.55% AMGEN, INC. 1.30% DAVITA, INC. 1.29% EXPRESS SCRIPTS, INC. 1.25% AUTOZONE, INC. 1.25% COACH, INC. 1.17% VARIAN MEDICAL SYSTEMS, INC. 1.16% CLOROX CO. 1.14% ANHEUSER-BUSCH COS., INC. 1.13% TJX COS., INC. 1.12% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Health Care 21.09 Consumer Discretionary 19.11 Information Technology 18.00 Energy 12.00 Consumer Staples 9.03 Industrials 7.74 Financials 6.77 Materials 5.29 Utilities 0.97
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 8 RYDEX S&P MIDCAP 400 PURE VALUE ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P MidCap 400 Pure Value ETF returned -41.75%. Over the year, its benchmark, the S&P MidCap 400/CitiGroup Pure Value Total Return Index, turned in a -42.05% return, while the S&P MidCap 400 Value Total Return Index, returned -36.19%. Though the S&P MidCap 400/CitiGroup Pure Value Total Return Index outperformed its cap-weighted counterpart slightly in the first two quarters of the fiscal year, in the second two quarters, it lagged substantially. The pure style's weighting to the consumer discretionary sector was the biggest reason for its underperformance, specifically the media industry. An overweighting to Lee Enterprises (LEE), a publisher of local news in 49 mid-markets across the country and a firm that has struggled mightily this year (down over 80%), was the main detractor to performance in that industry. Pure weighting to the utilities sector, which tended to suffer the least, helped stave the more negative effects of heavier hit sectors. For the first six months of this fiscal year (11/1/2007 through 4/30/2008), mid-caps outperformed the other cap ranges, followed by large caps with small caps bringing up the rear. However, in a role reversal, in the following six months ended 10/31/2008, mid caps got hit the hardest, with large caps in the middle and small caps holding up the best. Mid-cap growth tended to weather the financial maelstrom better than mid-cap value during this period. CUMULATIVE FUND PERFORMANCE: MARCH 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
RYDEX S&P S&P MIDCAP S&P MIDCAP MIDCAP 400 400/CITIGROUP PURE 400 VALUE PURE VALUE VALUE TOTAL TOTAL RETURN ETF(A) RETURN INDEX(B) INDEX(C) ---------- ------------------ ------------ 3/1/2006 10000 10000 10000 3/2/2006 9902 9903 9971 3/3/2006 9860 9864 9945 3/6/2006 9778 9781 9867 3/7/2006 9702 9703 9763 3/8/2006 9708 9710 9775 3/9/2006 9715 9716 9750 3/10/2006 9794 9797 9820 3/13/2006 9813 9815 9848 3/14/2006 9895 9899 9946 3/15/2006 9962 9966 10029 3/16/2006 9949 9954 10038 3/17/2006 9968 9973 10064 3/20/2006 9952 9956 10027 3/21/2006 9864 9867 9940 3/22/2006 9952 9955 10017 3/23/2006 9911 9914 10014 3/24/2006 9959 9962 10058 3/27/2006 9975 9980 10056 3/28/2006 9902 9907 10016 3/29/2006 10032 10037 10130 3/30/2006 10006 10010 10120 3/31/2006 9997 10003 10127 4/3/2006 10029 10034 10138 4/4/2006 10060 10065 10165 4/5/2006 10117 10124 10235 4/6/2006 10095 10101 10238 4/7/2006 9984 9990 10136 4/10/2006 9943 9947 10100 4/11/2006 9822 9829 9992 4/12/2006 9879 9884 10033 4/13/2006 9860 9867 10030 4/14/2006 9860 9867 10030 4/17/2006 9851 9856 10029 4/18/2006 10079 10085 10264 4/19/2006 10146 10152 10358 4/20/2006 10206 10214 10362 4/21/2006 10200 10207 10363 4/24/2006 10165 10171 10334 4/25/2006 10181 10189 10313 4/26/2006 10187 10194 10296 4/27/2006 10184 10191 10315 4/28/2006 10181 10188 10340 5/1/2006 10149 10157 10325 5/2/2006 10197 10206 10371 5/3/2006 10222 10231 10366 5/4/2006 10308 10319 10438 5/5/2006 10406 10415 10531 5/8/2006 10422 10432 10548 5/9/2006 10403 10412 10531 5/10/2006 10365 10374 10508 5/11/2006 10203 10213 10361 5/12/2006 10003 10011 10186 5/15/2006 10013 10020 10138 5/16/2006 9978 9985 10104 5/17/2006 9797 9804 9928 5/18/2006 9740 9748 9834 5/19/2006 9791 9798 9861 5/22/2006 9778 9786 9790 5/23/2006 9683 9691 9739 5/24/2006 9746 9755 9745 5/25/2006 9883 9890 9879 5/26/2006 9940 9950 9944 5/29/2006 9940 9950 9944 5/30/2006 9749 9758 9785 5/31/2006 9886 9894 9926 6/1/2006 10051 10062 10077 6/2/2006 10070 10081 10114 6/5/2006 9854 9864 9880 6/6/2006 9860 9869 9828 6/7/2006 9791 9801 9744 6/8/2006 9759 9768 9700 6/9/2006 9772 9783 9687 6/12/2006 9610 9619 9491 6/13/2006 9474 9483 9343 6/14/2006 9502 9510 9368 6/15/2006 9768 9778 9660 6/16/2006 9715 9724 9609 6/19/2006 9591 9600 9466 6/20/2006 9591 9602 9440 6/21/2006 9737 9749 9600 6/22/2006 9664 9674 9539 6/23/2006 9718 9730 9586 6/26/2006 9800 9812 9654 6/27/2006 9692 9704 9561 6/28/2006 9730 9742 9587 6/29/2006 10006 10020 9863 6/30/2006 10067 10080 9923 7/3/2006 10121 10134 9991 7/4/2006 10121 10134 9991 7/5/2006 10022 10035 9853 7/6/2006 10025 10037 9876 7/7/2006 9981 9994 9800 7/10/2006 10016 10029 9809 7/11/2006 10089 10102 9852 7/12/2006 9965 9979 9737 7/13/2006 9787 9799 9566 7/14/2006 9724 9737 9501 7/17/2006 9696 9707 9439 7/18/2006 9724 9736 9450 7/19/2006 9902 9916 9667 7/20/2006 9749 9761 9465 7/21/2006 9664 9677 9335 7/24/2006 9851 9865 9517 7/25/2006 9914 9928 9619 7/26/2006 9895 9909 9620 7/27/2006 9800 9816 9539 7/28/2006 9933 9950 9693 7/31/2006 9911 9926 9701 8/1/2006 9860 9874 9643 8/2/2006 9905 9919 9691 8/3/2006 9968 9984 9749 8/4/2006 9946 9963 9732 8/7/2006 9902 9916 9664 8/8/2006 9854 9870 9594 8/9/2006 9746 9761 9529 8/10/2006 9784 9798 9572 8/11/2006 9692 9709 9498 8/14/2006 9749 9763 9512 8/15/2006 9895 9913 9679 8/16/2006 10010 10026 9802 8/17/2006 10006 10025 9797 8/18/2006 10016 10034 9814 8/21/2006 9924 9941 9735 8/22/2006 9946 9964 9753 8/23/2006 9848 9865 9658 8/24/2006 9835 9852 9646 8/25/2006 9813 9831 9637 8/28/2006 9914 9931 9710 8/29/2006 10000 10017 9767 8/30/2006 10025 10043 9796 8/31/2006 10089 10107 9845 9/1/2006 10111 10129 9877 9/4/2006 10111 10129 9877 9/5/2006 10152 10172 9924 9/6/2006 10016 10033 9760 9/7/2006 9965 9985 9697 9/8/2006 9997 10015 9710 9/11/2006 10013 10032 9688 9/12/2006 10171 10191 9833 9/13/2006 10225 10245 9916 9/14/2006 10178 10199 9862 9/15/2006 10164 10186 9856 9/18/2006 10119 10140 9839 9/19/2006 10094 10114 9806 9/20/2006 10192 10214 9875 9/21/2006 10081 10102 9793 9/22/2006 10021 10043 9728 9/25/2006 10116 10138 9815 9/26/2006 10186 10207 9881 9/27/2006 10205 10227 9911 9/28/2006 10192 10214 9918 9/29/2006 10123 10146 9866 10/2/2006 10126 10148 9834 10/3/2006 10135 10158 9816 10/4/2006 10288 10311 9952 10/5/2006 10367 10389 10061 10/6/2006 10303 10326 10005 10/9/2006 10348 10372 10071 10/10/2006 10380 10403 10100 10/11/2006 10380 10405 10091 10/12/2006 10519 10544 10228 10/13/2006 10560 10586 10275 10/16/2006 10627 10654 10344 10/17/2006 10579 10606 10276 10/18/2006 10576 10603 10264 10/19/2006 10633 10659 10308 10/20/2006 10592 10620 10237 10/23/2006 10636 10663 10283 10/24/2006 10633 10659 10313 10/25/2006 10684 10712 10371 10/26/2006 10773 10800 10440 10/27/2006 10643 10669 10323 10/30/2006 10674 10702 10351 10/31/2006 10646 10674 10312 11/1/2006 10550 10578 10204 11/2/2006 10528 10555 10191 11/3/2006 10531 10558 10199 11/6/2006 10703 10731 10313 11/7/2006 10703 10733 10334 11/8/2006 10793 10822 10396 11/9/2006 10748 10777 10344 11/10/2006 10835 10866 10409 11/13/2006 10876 10908 10434 11/14/2006 11004 11034 10539 11/15/2006 11046 11079 10582 11/16/2006 11062 11094 10597 11/17/2006 11049 11082 10582 11/20/2006 11068 11101 10612 11/21/2006 11078 11111 10629 11/22/2006 11129 11161 10682 11/23/2006 11129 11161 10682 11/24/2006 11132 11165 10678 11/27/2006 10895 10928 10450 11/28/2006 10931 10962 10484 11/29/2006 11036 11069 10597 11/30/2006 11052 11085 10627 12/1/2006 11046 11080 10627 12/4/2006 11212 11248 10763 12/5/2006 11235 11270 10781 12/6/2006 11203 11237 10768 12/7/2006 11164 11201 10729 12/8/2006 11145 11180 10733 12/11/2006 11155 11188 10726 12/12/2006 11094 11128 10680 12/13/2006 11167 11204 10699 12/14/2006 11267 11303 10776 12/15/2006 11251 11288 10764 12/18/2006 11129 11170 10656 12/19/2006 11129 11169 10654 12/20/2006 11164 11204 10677 12/21/2006 11107 11148 10624 12/22/2006 11094 11133 10590 12/25/2006 11094 11133 10590 12/26/2006 11212 11253 10671 12/27/2006 11319 11362 10764 12/28/2006 11255 11298 10721 12/29/2006 11156 11199 10642 1/1/2007 11156 11199 10642 1/2/2007 11156 11199 10642 1/3/2007 11252 11297 10696 1/4/2007 11265 11307 10712 1/5/2007 11098 11142 10573 1/8/2007 11076 11119 10563 1/9/2007 11114 11157 10593 1/10/2007 11108 11152 10625 1/11/2007 11263 11307 10731 1/12/2007 11308 11352 10796 1/15/2007 11308 11352 10796 1/16/2007 11305 11348 10781 1/17/2007 11292 11335 10768 1/18/2007 11224 11267 10671 1/19/2007 11301 11345 10748 1/22/2007 11253 11298 10703 1/23/2007 11311 11355 10768 1/24/2007 11411 11457 10878 1/25/2007 11330 11375 10782 1/26/2007 11369 11415 10823 1/29/2007 11488 11534 10881 1/30/2007 11534 11581 10952 1/31/2007 11572 11618 10997 2/1/2007 11685 11733 11113 2/2/2007 11701 11748 11135 2/5/2007 11701 11751 11143 2/6/2007 11795 11843 11224 2/7/2007 11846 11897 11293 2/8/2007 11846 11895 11291 2/9/2007 11785 11834 11212 2/12/2007 11788 11837 11180 2/13/2007 11917 11967 11296 2/14/2007 11959 12011 11351 2/15/2007 11972 12024 11371 2/16/2007 11988 12038 11385 2/19/2007 11988 12038 11385 2/20/2007 12072 12123 11470 2/21/2007 12056 12108 11487 2/22/2007 12065 12117 11504 2/23/2007 12078 12132 11493 2/26/2007 12062 12114 11461 2/27/2007 11672 11722 11110 2/28/2007 11704 11755 11129 3/1/2007 11695 11746 11114 3/2/2007 11537 11587 10950 3/5/2007 11340 11388 10742 3/6/2007 11504 11554 10922 3/7/2007 11514 11564 10938 3/8/2007 11582 11631 11019 3/9/2007 11624 11674 11063 3/12/2007 11675 11727 11112 3/13/2007 11434 11482 10888 3/14/2007 11495 11544 10933 3/15/2007 11582 11634 11017 3/16/2007 11496 11547 10949 3/19/2007 11621 11675 11064 3/20/2007 11738 11792 11160 3/21/2007 11889 11942 11325 3/22/2007 11870 11922 11335 3/23/2007 11895 11950 11358 3/26/2007 11892 11946 11354 3/27/2007 11815 11868 11286 3/28/2007 11744 11798 11235 3/29/2007 11770 11825 11236 3/30/2007 11773 11828 11246 4/2/2007 11873 11929 11310 4/3/2007 11964 12020 11393 4/4/2007 11938 11994 11388 4/5/2007 11954 12009 11408 4/6/2007 11954 12009 11408 4/9/2007 11974 12031 11428 4/10/2007 12022 12079 11467 4/11/2007 11945 12001 11397 4/12/2007 12006 12063 11454 4/13/2007 12013 12069 11476 4/16/2007 12132 12191 11597 4/17/2007 12142 12199 11603 4/18/2007 12149 12206 11601 4/19/2007 12090 12149 11562 4/20/2007 12200 12261 11675 4/23/2007 12162 12221 11691 4/24/2007 12171 12230 11687 4/25/2007 12288 12348 11787 4/26/2007 12307 12368 11793 4/27/2007 12239 12298 11740 4/30/2007 12055 12114 11563 5/1/2007 12097 12157 11595 5/2/2007 12223 12282 11720 5/3/2007 12252 12313 11763 5/4/2007 12307 12370 11796 5/7/2007 12323 12384 11812 5/8/2007 12310 12373 11816 5/9/2007 12366 12428 11900 5/10/2007 12194 12254 11744 5/11/2007 12304 12367 11854 5/14/2007 12262 12323 11809 5/15/2007 12226 12289 11760 5/16/2007 12310 12372 11828 5/17/2007 12278 12340 11806 5/18/2007 12336 12401 11862 5/21/2007 12411 12476 11940 5/22/2007 12427 12492 11967 5/23/2007 12366 12429 11910 5/24/2007 12165 12229 11710 5/25/2007 12252 12315 11789 5/28/2007 12252 12315 11789 5/29/2007 12323 12389 11858 5/30/2007 12440 12508 11996 5/31/2007 12472 12540 12068 6/1/2007 12560 12627 12148 6/4/2007 12608 12678 12200 6/5/2007 12511 12578 12112 6/6/2007 12356 12420 11955 6/7/2007 12087 12149 11703 6/8/2007 12223 12288 11830 6/11/2007 12210 12274 11830 6/12/2007 12051 12115 11688 6/13/2007 12184 12249 11821 6/14/2007 12246 12312 11908 6/15/2007 12338 12404 11992 6/18/2007 12290 12357 11948 6/19/2007 12267 12335 11934 6/20/2007 12112 12175 11788 6/21/2007 12183 12250 11872 6/22/2007 12063 12128 11762 6/25/2007 11966 12031 11673 6/26/2007 11969 12035 11629 6/27/2007 12115 12181 11766 6/28/2007 12134 12200 11780 6/29/2007 12102 12168 11747 7/2/2007 12301 12369 11925 7/3/2007 12330 12399 11957 7/4/2007 12330 12399 11957 7/5/2007 12340 12407 11969 7/6/2007 12369 12437 12024 7/9/2007 12388 12457 12041 7/10/2007 12148 12214 11837 7/11/2007 12203 12269 11894 7/12/2007 12392 12460 12103 7/13/2007 12441 12511 12150 7/16/2007 12336 12406 12071 7/17/2007 12418 12487 12109 7/18/2007 12385 12456 12078 7/19/2007 12460 12533 12149 7/20/2007 12242 12315 11993 7/23/2007 12219 12291 11969 7/24/2007 11897 11967 11672 7/25/2007 11868 11937 11656 7/26/2007 11572 11637 11380 7/27/2007 11363 11429 11204 7/30/2007 11445 11509 11295 7/31/2007 11337 11403 11174 8/1/2007 11442 11508 11221 8/2/2007 11487 11555 11279 8/3/2007 11084 11147 10920 8/6/2007 11230 11296 11064 8/7/2007 11256 11323 11121 8/8/2007 11354 11420 11251 8/9/2007 11032 11093 10959 8/10/2007 11246 11310 11058 8/13/2007 11243 11309 11095 8/14/2007 11022 11085 10873 8/15/2007 10800 10862 10653 8/16/2007 10931 10995 10707 8/17/2007 11168 11232 10950 8/20/2007 11233 11299 11014 8/21/2007 11253 11319 11053 8/22/2007 11380 11449 11190 8/23/2007 11350 11419 11153 8/24/2007 11458 11527 11274 8/27/2007 11324 11392 11162 8/28/2007 11038 11102 10892 8/29/2007 11311 11381 11154 8/30/2007 11240 11309 11096 8/31/2007 11373 11441 11255 9/3/2007 11373 11441 11255 9/4/2007 11455 11525 11370 9/5/2007 11302 11369 11242 9/6/2007 11337 11405 11301 9/7/2007 11126 11194 11095 9/10/2007 11038 11104 11008 9/11/2007 11136 11203 11122 9/12/2007 11077 11145 11093 9/13/2007 11080 11146 11118 9/14/2007 11119 11186 11151 9/17/2007 11041 11108 11067 9/18/2007 11380 11450 11404 9/19/2007 11497 11571 11486 9/20/2007 11402 11474 11399 9/21/2007 11408 11480 11417 9/24/2007 11304 11376 11329 9/25/2007 11301 11372 11310 9/26/2007 11405 11476 11397 9/27/2007 11499 11572 11503 9/28/2007 11408 11481 11451 10/1/2007 11686 11762 11620 10/2/2007 11771 11849 11676 10/3/2007 11716 11792 11645 10/4/2007 11722 11797 11652 10/5/2007 11916 11994 11830 10/8/2007 11866 11946 11776 10/9/2007 11919 11998 11844 10/10/2007 11853 11930 11825 10/11/2007 11814 11890 11768 10/12/2007 11840 11919 11787 10/15/2007 11690 11765 11690 10/16/2007 11601 11678 11576 10/17/2007 11608 11686 11577 10/18/2007 11618 11695 11590 10/19/2007 11346 11420 11324 10/22/2007 11431 11507 11398 10/23/2007 11483 11560 11464 10/24/2007 11431 11508 11411 10/25/2007 11398 11474 11346 10/26/2007 11546 11622 11470 10/29/2007 11542 11619 11502 10/30/2007 11542 11618 11472 10/31/2007 11706 11778 11649 11/1/2007 11392 11443 11364 11/2/2007 11352 11398 11319 11/5/2007 11271 11314 11227 11/6/2007 11349 11388 11363 11/7/2007 11015 11057 11083 11/8/2007 11195 11236 11161 11/9/2007 11117 11167 11053 11/12/2007 11051 11114 10882 11/13/2007 11277 11353 11127 11/14/2007 11159 11231 11063 11/15/2007 11058 11125 10944 11/16/2007 11009 11062 10911 11/19/2007 10786 10834 10691 11/20/2007 10783 10818 10674 11/21/2007 10652 10684 10540 11/22/2007 10652 10684 10540 11/23/2007 10783 10819 10678 11/26/2007 10560 10586 10476 11/27/2007 10665 10691 10583 11/28/2007 10979 11009 10920 11/29/2007 10963 10988 10910 11/30/2007 11025 11050 10980 12/3/2007 10930 10959 10924 12/4/2007 10884 10912 10871 12/5/2007 11032 11060 11040 12/6/2007 11258 11286 11277 12/7/2007 11280 11310 11283 12/10/2007 11375 11408 11392 12/11/2007 11019 11048 11027 12/12/2007 11019 11047 11048 12/13/2007 11005 11034 11052 12/14/2007 10796 10825 10851 12/17/2007 10655 10682 10679 12/18/2007 10753 10781 10760 12/19/2007 10773 10803 10770 12/20/2007 10888 10916 10899 12/21/2007 11072 11111 11092 12/24/2007 11190 11243 11221 12/25/2007 11190 11243 11221 12/26/2007 11147 11198 11169 12/27/2007 10918 10960 10996 12/28/2007 10849 10891 10972 12/31/2007 10803 10841 10924 1/1/2008 10803 10841 10924 1/2/2008 10632 10665 10790 1/3/2008 10349 10368 10645 1/4/2008 9970 9978 10346 1/7/2008 10016 10024 10347 1/8/2008 9680 9681 10098 1/9/2008 9684 9687 10139 1/10/2008 9865 9872 10233 1/11/2008 9736 9739 10106 1/14/2008 9806 9813 10162 1/15/2008 9638 9639 9942 1/16/2008 9802 9808 9959 1/17/2008 9598 9599 9688 1/18/2008 9480 9475 9604 1/21/2008 9480 9475 9604 1/22/2008 9611 9611 9609 1/23/2008 10158 10177 9918 1/24/2008 10220 10237 9956 1/25/2008 10138 10152 9865 1/28/2008 10514 10538 10137 1/29/2008 10728 10757 10232 1/30/2008 10596 10623 10134 1/31/2008 10975 11014 10366 2/1/2008 11281 11330 10610 2/4/2008 11146 11185 10526 2/5/2008 10820 10854 10240 2/6/2008 10681 10712 10130 2/7/2008 10836 10870 10243 2/8/2008 10678 10709 10209 2/11/2008 10622 10650 10217 2/12/2008 10708 10739 10270 2/13/2008 10813 10851 10389 2/14/2008 10616 10643 10217 2/15/2008 10589 10620 10212 2/18/2008 10589 10620 10212 2/19/2008 10523 10553 10183 2/20/2008 10688 10723 10315 2/21/2008 10546 10574 10179 2/22/2008 10593 10621 10249 2/25/2008 10790 10828 10440 2/26/2008 10876 10917 10519 2/27/2008 10826 10864 10453 2/28/2008 10550 10578 10315 2/29/2008 10220 10238 10033 3/3/2008 10158 10175 10062 3/4/2008 10145 10162 9997 3/5/2008 10145 10160 10028 3/6/2008 9789 9792 9759 3/7/2008 9743 9743 9710 3/10/2008 9582 9578 9545 3/11/2008 9997 10004 9857 3/12/2008 9792 9796 9770 3/13/2008 9980 9989 9885 3/14/2008 9750 9749 9701 3/17/2008 9555 9555 9548 3/18/2008 9964 9965 9913 3/19/2008 9819 9821 9720 3/20/2008 10140 10142 9907 3/21/2008 10140 10142 9907 3/24/2008 10400 10402 10104 3/25/2008 10472 10477 10204 3/26/2008 10288 10291 10081 3/27/2008 10103 10106 9972 3/28/2008 9952 9951 9879 3/31/2008 10067 10068 9980 4/1/2008 10478 10482 10317 4/2/2008 10535 10539 10358 4/3/2008 10571 10574 10405 4/4/2008 10492 10496 10398 4/7/2008 10518 10521 10434 4/8/2008 10435 10437 10401 4/9/2008 10206 10210 10239 4/10/2008 10303 10304 10338 4/11/2008 10080 10082 10167 4/14/2008 10011 10013 10121 4/15/2008 10094 10095 10198 4/16/2008 10379 10383 10502 4/17/2008 10382 10388 10487 4/18/2008 10538 10545 10645 4/21/2008 10412 10418 10611 4/22/2008 10243 10248 10484 4/23/2008 10213 10218 10518 4/24/2008 10442 10448 10643 4/25/2008 10591 10596 10756 4/28/2008 10664 10671 10786 4/29/2008 10714 10721 10744 4/30/2008 10608 10614 10710 5/1/2008 10972 10980 10911 5/2/2008 10889 10899 10919 5/5/2008 10800 10808 10885 5/6/2008 10896 10905 10958 5/7/2008 10700 10707 10817 5/8/2008 10707 10715 10872 5/9/2008 10720 10727 10868 5/12/2008 10942 10951 11029 5/13/2008 10916 10925 11082 5/14/2008 10959 10968 11130 5/15/2008 11092 11103 11249 5/16/2008 10999 11011 11254 5/19/2008 10986 10997 11241 5/20/2008 10883 10895 11200 5/21/2008 10677 10685 11048 5/22/2008 10710 10720 11083 5/23/2008 10531 10539 10934 5/26/2008 10531 10539 10934 5/27/2008 10697 10707 11044 5/28/2008 10684 10693 11085 5/29/2008 10813 10824 11156 5/30/2008 10777 10789 11206 6/2/2008 10681 10691 11110 6/3/2008 10707 10718 11116 6/4/2008 10820 10830 11164 6/5/2008 10979 10990 11381 6/6/2008 10555 10567 11061 6/9/2008 10419 10429 11004 6/10/2008 10472 10482 10957 6/11/2008 10157 10165 10754 6/12/2008 10239 10250 10767 6/13/2008 10395 10407 10919 6/16/2008 10455 10465 10986 6/17/2008 10349 10359 10933 6/18/2008 10249 10260 10842 6/19/2008 10332 10343 10885 6/20/2008 10102 10113 10700 6/23/2008 9913 9927 10650 6/24/2008 9827 9845 10545 6/25/2008 9943 9960 10623 6/26/2008 9559 9571 10329 6/27/2008 9459 9470 10266 6/30/2008 9280 9288 10210 7/1/2008 9307 9315 10212 7/2/2008 9046 9055 9939 7/3/2008 8912 8922 9821 7/4/2008 8912 8922 9821 7/7/2008 8805 8812 9726 7/8/2008 9217 9227 10002 7/9/2008 8969 8978 9812 7/10/2008 8909 8918 9858 7/11/2008 8849 8858 9822 7/14/2008 8625 8633 9669 7/15/2008 8578 8587 9595 7/16/2008 8999 9010 9894 7/17/2008 9337 9348 10079 7/18/2008 9337 9347 10059 7/21/2008 9370 9381 10114 7/22/2008 9698 9712 10302 7/23/2008 9829 9843 10328 7/24/2008 9384 9395 9960 7/25/2008 9360 9374 10009 7/28/2008 9166 9178 9885 7/29/2008 9551 9564 10145 7/30/2008 9571 9585 10264 7/31/2008 9574 9589 10176 8/1/2008 9601 9616 10155 8/4/2008 9541 9556 10012 8/5/2008 9885 9900 10275 8/6/2008 9875 9892 10330 8/7/2008 9611 9625 10144 8/8/2008 9966 9982 10396 8/11/2008 10163 10181 10535 8/12/2008 10002 10022 10405 8/13/2008 9919 9934 10384 8/14/2008 10079 10098 10479 8/15/2008 10120 10139 10486 8/18/2008 9939 9957 10347 8/19/2008 9745 9759 10215 8/20/2008 9712 9727 10239 8/21/2008 9661 9676 10231 8/22/2008 9875 9894 10358 8/25/2008 9641 9657 10148 8/26/2008 9665 9680 10189 8/27/2008 9802 9819 10315 8/28/2008 10043 10061 10507 8/29/2008 9949 9966 10389 9/1/2008 9949 9966 10389 9/2/2008 10039 10057 10327 9/3/2008 10156 10175 10313 9/4/2008 9882 9901 10051 9/5/2008 9912 9931 10085 9/8/2008 10263 10282 10284 9/9/2008 9922 9940 9900 9/10/2008 10019 10037 10015 9/11/2008 10076 10095 10060 9/12/2008 10116 10138 10181 9/15/2008 9668 9686 9722 9/16/2008 9912 9932 9951 9/17/2008 9404 9420 9510 9/18/2008 10206 10228 10066 9/19/2008 10576 10600 10519 9/22/2008 9877 9897 9925 9/23/2008 9760 9777 9818 9/24/2008 9622 9640 9714 9/25/2008 9800 9817 9837 9/26/2008 9783 9802 9814 9/29/2008 9074 9087 9096 9/30/2008 9425 9441 9502 10/1/2008 9428 9446 9436 10/2/2008 8927 8941 8922 10/3/2008 8654 8667 8695 10/6/2008 8330 8342 8313 10/7/2008 7828 7839 7859 10/8/2008 7727 7738 7746 10/9/2008 6959 6964 7142 10/10/2008 7188 7197 7239 10/13/2008 7758 7769 7972 10/14/2008 7576 7585 7804 10/15/2008 6811 6819 7036 10/16/2008 7071 7078 7309 10/17/2008 6929 6937 7263 10/20/2008 7185 7193 7552 10/21/2008 6973 6981 7347 10/22/2008 6525 6530 6915 10/23/2008 6346 6351 6771 10/24/2008 6141 6148 6567 10/27/2008 5817 5819 6284 10/28/2008 6279 6284 6850 10/29/2008 6346 6351 6918 10/30/2008 6612 6618 7226 10/31/2008 6818 6827 7433
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (03/01/06) -------- --------------- RYDEX S&P MIDCAP 400 PURE VALUE ETF............................... -41.75% -13.35% S&P MIDCAP 400/CITIGROUP PURE VALUE TOTAL RETURN INDEX............ -42.05% -13.33% S&P MIDCAP 400 VALUE TOTAL RETURN INDEX........................... -36.19% -10.52%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 9 ANNUAL REPORT Rydex S&P MidCap 400 Pure Value ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ FOOT LOCKER, INC. 2.98% KELLY SERVICES, INC. -- CLASS A 2.35% ARVINMERITOR, INC. 2.12% FURNITURE BRANDS INTERNATIONAL, INC. 2.09% RYLAND GROUP, INC. 2.02% FIDELITY NATIONAL FINANCIAL, INC. -- CLASS A 2.00% FIRST NIAGARA FINANCIAL GROUP, INC. 1.96% HAWAIIAN ELECTRIC INDUSTRIES, INC. 1.81% ALASKA AIR GROUP, INC. 1.70% RENT-A-CENTER, INC. 1.56% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 32.28 Consumer Discretionary 17.69 Utilities 16.54 Industrials 11.36 Information Technology 8.03 Materials 7.57 Health Care 3.86 Consumer Staples 2.67
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 10 RYDEX S&P MIDCAP 400 PURE GROWTH ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P MidCap 400 Pure Growth ETF returned -34.52%. Over the year, its benchmark, the S&P MidCap 400/CitiGroup Pure Growth Total Return Index, turned in a -34.33% total return, which outperformed the counterpart S&P MidCap 400 Growth Total Return Index (whose return was -36.74%) by more than 2%. The pure style's weighting to the consumer discretionary sector was the biggest reason for the outperformance. Despite falling more than 27% in the last quarter, mid-cap pure growth managed to outperform its cap-weight counterpart three out of four quarters this year. While the health care sector hurt both strategies, an overweight position to pharmaceuticals and biotech hurt the pure style approach a little more. Any out performance by pure style was mostly attributable to the pure style's selection of and allocation to stocks in the health care providers & services and media industries. For the first six months of this fiscal year (11/1/2007 through 4/30/2008), mid-caps outperformed the other cap ranges, followed by large caps with small caps bringing up the rear. However, in a role reversal, in the following six months ended October 31, 2008, mid caps got hit the hardest, with large caps in the middle and small caps holding up the best. Mid-cap growth tended to weather the financial maelstrom better than mid-cap value during this period. CUMULATIVE FUND PERFORMANCE: MARCH 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P MIDCAP RYDEX S&P 400/CITIGROUP PURE S&P MIDCAP MIDCAP 400 GROWTH TOTAL 400 GROWTH PURE GROWTH RETURN INDEX TOTAL RETURN ETF(A) (B) INDEX(C) ----------- ------------------ ------------ 3/1/2006 10000 10002 10000 3/2/2006 9918 9921 9957 3/3/2006 9884 9886 9921 3/6/2006 9802 9804 9808 3/7/2006 9679 9681 9683 3/8/2006 9685 9687 9688 3/9/2006 9618 9621 9621 3/10/2006 9690 9694 9677 3/13/2006 9736 9739 9739 3/14/2006 9835 9838 9848 3/15/2006 9871 9874 9904 3/16/2006 9850 9853 9905 3/17/2006 9884 9887 9932 3/20/2006 9875 9878 9903 3/21/2006 9804 9808 9820 3/22/2006 9886 9891 9898 3/23/2006 9905 9909 9926 3/24/2006 9933 9938 9985 3/27/2006 9907 9912 9978 3/28/2006 9899 9903 9957 3/29/2006 10023 10027 10052 3/30/2006 10030 10034 10070 3/31/2006 10046 10050 10069 4/3/2006 9983 9988 10033 4/4/2006 10036 10042 10071 4/5/2006 10124 10128 10152 4/6/2006 10135 10140 10160 4/7/2006 10044 10048 10062 4/10/2006 9991 9996 10027 4/11/2006 9892 9897 9937 4/12/2006 9895 9901 9956 4/13/2006 9905 9911 9976 4/14/2006 9905 9911 9976 4/17/2006 9888 9895 9970 4/18/2006 10099 10105 10181 4/19/2006 10181 10188 10286 4/20/2006 10179 10185 10291 4/21/2006 10087 10094 10255 4/24/2006 10021 10028 10203 4/25/2006 9991 9998 10148 4/26/2006 9962 9969 10089 4/27/2006 9918 9926 10077 4/28/2006 9962 9970 10135 5/1/2006 9899 9906 10110 5/2/2006 9930 9938 10163 5/3/2006 9924 9933 10143 5/4/2006 9914 9922 10188 5/5/2006 10011 10019 10304 5/8/2006 10008 10017 10321 5/9/2006 9975 9983 10293 5/10/2006 9943 9952 10276 5/11/2006 9812 9820 10155 5/12/2006 9648 9656 9969 5/15/2006 9595 9604 9887 5/16/2006 9584 9593 9874 5/17/2006 9430 9439 9696 5/18/2006 9380 9390 9609 5/19/2006 9430 9440 9623 5/22/2006 9337 9346 9541 5/23/2006 9272 9281 9498 5/24/2006 9244 9254 9460 5/25/2006 9335 9345 9558 5/26/2006 9399 9410 9621 5/29/2006 9399 9410 9621 5/30/2006 9228 9238 9469 5/31/2006 9363 9373 9620 6/1/2006 9508 9518 9765 6/2/2006 9521 9531 9803 6/5/2006 9272 9282 9549 6/6/2006 9251 9261 9493 6/7/2006 9204 9212 9419 6/8/2006 9177 9185 9373 6/9/2006 9145 9152 9349 6/12/2006 8913 8917 9115 6/13/2006 8765 8769 8960 6/14/2006 8833 8837 9032 6/15/2006 9126 9134 9331 6/16/2006 9078 9085 9305 6/19/2006 8943 8950 9143 6/20/2006 8907 8912 9097 6/21/2006 9073 9081 9276 6/22/2006 9016 9023 9228 6/23/2006 9170 9179 9359 6/26/2006 9194 9205 9392 6/27/2006 9092 9100 9309 6/28/2006 9069 9077 9306 6/29/2006 9337 9349 9588 6/30/2006 9380 9393 9629 7/3/2006 9428 9442 9705 7/4/2006 9428 9442 9705 7/5/2006 9278 9290 9536 7/6/2006 9301 9313 9566 7/7/2006 9209 9220 9458 7/10/2006 9152 9163 9413 7/11/2006 9187 9198 9443 7/12/2006 9061 9071 9329 7/13/2006 8892 8899 9170 7/14/2006 8818 8825 9100 7/17/2006 8782 8789 9030 7/18/2006 8782 8791 9023 7/19/2006 9023 9033 9255 7/20/2006 8812 8820 9028 7/21/2006 8694 8703 8885 7/24/2006 8928 8937 9104 7/25/2006 9021 9031 9230 7/26/2006 8964 8973 9218 7/27/2006 8852 8860 9105 7/28/2006 8997 9005 9252 7/31/2006 8995 9005 9285 8/1/2006 8873 8882 9186 8/2/2006 8936 8945 9263 8/3/2006 9004 9014 9337 8/4/2006 8919 8928 9270 8/7/2006 8871 8880 9224 8/8/2006 8759 8769 9131 8/9/2006 8664 8674 9059 8/10/2006 8732 8743 9136 8/11/2006 8643 8652 9053 8/14/2006 8634 8643 9045 8/15/2006 8812 8823 9223 8/16/2006 8968 8979 9372 8/17/2006 8978 8989 9376 8/18/2006 9016 9026 9398 8/21/2006 8905 8916 9306 8/22/2006 8905 8916 9308 8/23/2006 8837 8847 9225 8/24/2006 8748 8759 9190 8/25/2006 8748 8758 9190 8/28/2006 8845 8856 9264 8/29/2006 8894 8907 9302 8/30/2006 8924 8937 9318 8/31/2006 8936 8948 9353 9/1/2006 8989 9002 9417 9/4/2006 8989 9002 9417 9/5/2006 9016 9028 9448 9/6/2006 8865 8877 9281 9/7/2006 8826 8837 9227 9/8/2006 8827 8841 9223 9/11/2006 8854 8867 9222 9/12/2006 9082 9095 9400 9/13/2006 9137 9151 9490 9/14/2006 9086 9099 9412 9/15/2006 9067 9081 9401 9/18/2006 9081 9095 9415 9/19/2006 9067 9082 9381 9/20/2006 9132 9147 9428 9/21/2006 9088 9103 9382 9/22/2006 9026 9040 9303 9/25/2006 9130 9146 9403 9/26/2006 9214 9229 9498 9/27/2006 9221 9237 9523 9/28/2006 9227 9242 9534 9/29/2006 9132 9147 9468 10/2/2006 9092 9108 9393 10/3/2006 9086 9102 9357 10/4/2006 9263 9280 9532 10/5/2006 9379 9397 9654 10/6/2006 9313 9330 9585 10/9/2006 9375 9393 9628 10/10/2006 9419 9437 9675 10/11/2006 9387 9403 9640 10/12/2006 9560 9578 9800 10/13/2006 9600 9619 9846 10/16/2006 9672 9692 9927 10/17/2006 9577 9596 9822 10/18/2006 9533 9551 9790 10/19/2006 9550 9569 9840 10/20/2006 9504 9524 9772 10/23/2006 9558 9576 9826 10/24/2006 9542 9562 9846 10/25/2006 9552 9571 9874 10/26/2006 9668 9689 9988 10/27/2006 9542 9562 9868 10/30/2006 9575 9596 9879 10/31/2006 9524 9544 9821 11/1/2006 9379 9399 9684 11/2/2006 9394 9414 9688 11/3/2006 9406 9425 9716 11/6/2006 9524 9544 9828 11/7/2006 9558 9578 9857 11/8/2006 9615 9635 9915 11/9/2006 9533 9554 9849 11/10/2006 9622 9644 9920 11/13/2006 9651 9672 9935 11/14/2006 9793 9816 10044 11/15/2006 9904 9925 10126 11/16/2006 9904 9926 10114 11/17/2006 9885 9908 10103 11/20/2006 9873 9897 10105 11/21/2006 9900 9923 10131 11/22/2006 9965 9988 10175 11/23/2006 9965 9988 10175 11/24/2006 9949 9973 10159 11/27/2006 9759 9783 9970 11/28/2006 9765 9789 9992 11/29/2006 9902 9927 10133 11/30/2006 9911 9936 10156 12/1/2006 9919 9944 10161 12/4/2006 10042 10067 10263 12/5/2006 10086 10112 10291 12/6/2006 10098 10123 10291 12/7/2006 10031 10055 10236 12/8/2006 10039 10063 10233 12/11/2006 10016 10041 10212 12/12/2006 9951 9976 10150 12/13/2006 9968 9993 10162 12/14/2006 10037 10062 10252 12/15/2006 9997 10024 10205 12/18/2006 9904 9932 10098 12/19/2006 9909 9938 10114 12/20/2006 9921 9949 10109 12/21/2006 9883 9911 10069 12/22/2006 9852 9880 10025 12/25/2006 9852 9880 10025 12/26/2006 9885 9913 10056 12/27/2006 9998 10002 10148 12/28/2006 9967 9972 10114 12/29/2006 9888 9893 10035 1/1/2007 9888 9893 10035 1/2/2007 9888 9893 10035 1/3/2007 9918 9923 10058 1/4/2007 9945 9949 10088 1/5/2007 9857 9862 10005 1/8/2007 9882 9888 10030 1/9/2007 9939 9945 10061 1/10/2007 9981 9986 10100 1/11/2007 10101 10106 10217 1/12/2007 10178 10184 10299 1/15/2007 10178 10184 10299 1/16/2007 10157 10162 10281 1/17/2007 10166 10172 10287 1/18/2007 10086 10091 10188 1/19/2007 10114 10122 10248 1/22/2007 10063 10070 10194 1/23/2007 10141 10148 10285 1/24/2007 10237 10244 10388 1/25/2007 10097 10104 10235 1/26/2007 10088 10094 10248 1/29/2007 10132 10138 10281 1/30/2007 10153 10160 10333 1/31/2007 10225 10233 10430 2/1/2007 10290 10298 10517 2/2/2007 10342 10350 10550 2/5/2007 10340 10348 10547 2/6/2007 10363 10371 10576 2/7/2007 10382 10391 10594 2/8/2007 10394 10403 10611 2/9/2007 10317 10325 10535 2/12/2007 10306 10314 10497 2/13/2007 10380 10389 10584 2/14/2007 10455 10465 10674 2/15/2007 10518 10528 10710 2/16/2007 10506 10515 10722 2/19/2007 10506 10515 10722 2/20/2007 10552 10562 10787 2/21/2007 10590 10601 10827 2/22/2007 10585 10594 10838 2/23/2007 10588 10598 10847 2/26/2007 10537 10548 10789 2/27/2007 10212 10221 10457 2/28/2007 10218 10228 10457 3/1/2007 10197 10208 10432 3/2/2007 10040 10053 10269 3/5/2007 9874 9886 10099 3/6/2007 10021 10033 10258 3/7/2007 10046 10059 10292 3/8/2007 10113 10126 10367 3/9/2007 10137 10152 10398 3/12/2007 10183 10198 10435 3/13/2007 9990 10004 10232 3/14/2007 10028 10042 10274 3/15/2007 10097 10111 10336 3/16/2007 10054 10068 10286 3/19/2007 10142 10158 10396 3/20/2007 10211 10227 10478 3/21/2007 10348 10363 10625 3/22/2007 10381 10397 10664 3/23/2007 10425 10441 10699 3/26/2007 10423 10439 10694 3/27/2007 10389 10404 10655 3/28/2007 10335 10351 10613 3/29/2007 10346 10362 10613 3/30/2007 10366 10383 10629 4/2/2007 10402 10419 10668 4/3/2007 10483 10500 10750 4/4/2007 10490 10508 10771 4/5/2007 10554 10571 10815 4/6/2007 10554 10571 10815 4/9/2007 10556 10574 10815 4/10/2007 10583 10601 10852 4/11/2007 10531 10548 10790 4/12/2007 10631 10649 10883 4/13/2007 10669 10688 10913 4/16/2007 10782 10801 11029 4/17/2007 10753 10773 10998 4/18/2007 10728 10748 10976 4/19/2007 10677 10696 10929 4/20/2007 10790 10809 11030 4/23/2007 10790 10811 11050 4/24/2007 10763 10783 11041 4/25/2007 10826 10846 11121 4/26/2007 10899 10920 11169 4/27/2007 10876 10898 11129 4/30/2007 10746 10766 10977 5/1/2007 10757 10777 11009 5/2/2007 10882 10903 11142 5/3/2007 10882 10904 11163 5/4/2007 10959 10980 11228 5/7/2007 10945 10967 11217 5/8/2007 10945 10967 11226 5/9/2007 11015 11038 11299 5/10/2007 10857 10878 11135 5/11/2007 10928 10950 11228 5/14/2007 10880 10903 11184 5/15/2007 10834 10857 11141 5/16/2007 10915 10938 11215 5/17/2007 10961 10984 11258 5/18/2007 11038 11061 11328 5/21/2007 11176 11200 11440 5/22/2007 11208 11233 11462 5/23/2007 11183 11209 11444 5/24/2007 11039 11064 11278 5/25/2007 11101 11125 11353 5/28/2007 11101 11125 11353 5/29/2007 11157 11181 11413 5/30/2007 11266 11291 11537 5/31/2007 11318 11344 11597 6/1/2007 11377 11403 11661 6/4/2007 11404 11431 11715 6/5/2007 11356 11382 11650 6/6/2007 11231 11258 11514 6/7/2007 10993 11019 11276 6/8/2007 11126 11152 11400 6/11/2007 11116 11143 11414 6/12/2007 10997 11023 11298 6/13/2007 11124 11150 11427 6/14/2007 11176 11203 11515 6/15/2007 11233 11260 11575 6/18/2007 11221 11249 11568 6/19/2007 11196 11223 11546 6/20/2007 11112 11138 11451 6/21/2007 11181 11208 11530 6/22/2007 11054 11082 11402 6/25/2007 10979 11007 11328 6/26/2007 11006 11033 11303 6/27/2007 11133 11160 11424 6/28/2007 11150 11179 11425 6/29/2007 11127 11155 11398 7/2/2007 11248 11277 11529 7/3/2007 11310 11339 11583 7/4/2007 11310 11339 11583 7/5/2007 11302 11332 11580 7/6/2007 11398 11428 11663 7/9/2007 11388 11420 11672 7/10/2007 11219 11250 11525 7/11/2007 11275 11306 11589 7/12/2007 11413 11444 11761 7/13/2007 11442 11474 11798 7/16/2007 11356 11387 11722 7/17/2007 11344 11376 11729 7/18/2007 11306 11338 11697 7/19/2007 11311 11344 11737 7/20/2007 11212 11243 11642 7/23/2007 11179 11210 11613 7/24/2007 10956 10986 11364 7/25/2007 10966 10996 11360 7/26/2007 10747 10777 11122 7/27/2007 10607 10636 11003 7/30/2007 10699 10728 11108 7/31/2007 10563 10592 10971 8/1/2007 10565 10593 10986 8/2/2007 10701 10730 11113 8/3/2007 10407 10435 10820 8/6/2007 10565 10593 10967 8/7/2007 10666 10697 11083 8/8/2007 10841 10873 11246 8/9/2007 10645 10675 11022 8/10/2007 10536 10567 10970 8/13/2007 10543 10574 10983 8/14/2007 10361 10390 10790 8/15/2007 10157 10186 10568 8/16/2007 10161 10190 10540 8/17/2007 10371 10400 10751 8/20/2007 10409 10439 10790 8/21/2007 10415 10445 10799 8/22/2007 10595 10627 10975 8/23/2007 10515 10546 10915 8/24/2007 10682 10714 11103 8/27/2007 10555 10586 10982 8/28/2007 10309 10340 10723 8/29/2007 10565 10597 10982 8/30/2007 10520 10553 10932 8/31/2007 10676 10708 11093 9/3/2007 10676 10708 11093 9/4/2007 10793 10827 11239 9/5/2007 10701 10734 11158 9/6/2007 10751 10785 11212 9/7/2007 10545 10579 11006 9/10/2007 10474 10506 10937 9/11/2007 10622 10657 11093 9/12/2007 10618 10652 11101 9/13/2007 10674 10708 11137 9/14/2007 10739 10774 11192 9/17/2007 10647 10681 11107 9/18/2007 10970 11006 11429 9/19/2007 11008 11044 11469 9/20/2007 10939 10976 11396 9/21/2007 10967 11003 11430 9/24/2007 10903 10939 11354 9/25/2007 10897 10934 11349 9/26/2007 10963 11000 11433 9/27/2007 11020 11058 11520 9/28/2007 10965 11002 11484 10/1/2007 11095 11133 11630 10/2/2007 11197 11236 11700 10/3/2007 11180 11218 11673 10/4/2007 11153 11192 11659 10/5/2007 11370 11411 11858 10/8/2007 11293 11333 11799 10/9/2007 11424 11464 11928 10/10/2007 11416 11457 11931 10/11/2007 11333 11373 11840 10/12/2007 11339 11380 11862 10/15/2007 11245 11286 11789 10/16/2007 11182 11221 11702 10/17/2007 11176 11216 11711 10/18/2007 11232 11270 11754 10/19/2007 10942 10980 11466 10/22/2007 11026 11065 11542 10/23/2007 11109 11148 11634 10/24/2007 11126 11164 11639 10/25/2007 11145 11184 11595 10/26/2007 11310 11351 11743 10/29/2007 11318 11360 11778 10/30/2007 11247 11288 11674 10/31/2007 11473 11516 11889 11/1/2007 11230 11267 11660 11/2/2007 11253 11292 11675 11/5/2007 11172 11209 11585 11/6/2007 11314 11353 11735 11/7/2007 11080 11116 11483 11/8/2007 11107 11134 11492 11/9/2007 10909 10935 11299 11/12/2007 10807 10837 11132 11/13/2007 11036 11069 11375 11/14/2007 10967 10997 11338 11/15/2007 10847 10876 11214 11/16/2007 10844 10873 11201 11/19/2007 10667 10692 11006 11/20/2007 10627 10650 10994 11/21/2007 10494 10519 10844 11/22/2007 10494 10519 10844 11/23/2007 10638 10663 10986 11/26/2007 10483 10506 10849 11/27/2007 10609 10634 10979 11/28/2007 10890 10921 11283 11/29/2007 10880 10910 11294 11/30/2007 10982 11014 11374 12/3/2007 10924 10959 11343 12/4/2007 10911 10944 11317 12/5/2007 11059 11094 11475 12/6/2007 11262 11298 11701 12/7/2007 11281 11318 11722 12/10/2007 11335 11372 11798 12/11/2007 11028 11063 11479 12/12/2007 11091 11127 11539 12/13/2007 11086 11121 11532 12/14/2007 10965 11000 11377 12/17/2007 10773 10808 11175 12/18/2007 10849 10884 11250 12/19/2007 10817 10852 11226 12/20/2007 10911 10947 11355 12/21/2007 11041 11079 11508 12/24/2007 11155 11195 11632 12/25/2007 11155 11195 11632 12/26/2007 11145 11186 11629 12/27/2007 10953 10993 11456 12/28/2007 10947 10988 11469 12/31/2007 10872 10912 11389 1/1/2008 10872 10912 11389 1/2/2008 10686 10724 11248 1/3/2008 10634 10672 11242 1/4/2008 10336 10372 10914 1/7/2008 10296 10333 10855 1/8/2008 10056 10090 10620 1/9/2008 10144 10179 10680 1/10/2008 10263 10299 10775 1/11/2008 10058 10093 10606 1/14/2008 10194 10230 10765 1/15/2008 9904 9938 10488 1/16/2008 9837 9869 10371 1/17/2008 9594 9625 10053 1/18/2008 9579 9610 10070 1/21/2008 9579 9610 10070 1/22/2008 9502 9532 9969 1/23/2008 9685 9716 10099 1/24/2008 9902 9934 10304 1/25/2008 9804 9837 10213 1/28/2008 10019 10054 10406 1/29/2008 10069 10105 10462 1/30/2008 9950 9985 10340 1/31/2008 10179 10215 10566 2/1/2008 10394 10432 10811 2/4/2008 10298 10335 10739 2/5/2008 9992 10027 10415 2/6/2008 9848 9882 10281 2/7/2008 9937 9972 10380 2/8/2008 9977 10013 10457 2/11/2008 10063 10098 10570 2/12/2008 10071 10107 10561 2/13/2008 10206 10242 10714 2/14/2008 10042 10079 10552 2/15/2008 10002 10039 10505 2/18/2008 10002 10039 10505 2/19/2008 10058 10095 10556 2/20/2008 10211 10249 10712 2/21/2008 10025 10062 10571 2/22/2008 10094 10131 10621 2/25/2008 10330 10370 10855 2/26/2008 10492 10534 10987 2/27/2008 10494 10536 10952 2/28/2008 10369 10410 10879 2/29/2008 10017 10054 10519 3/3/2008 9996 10033 10525 3/4/2008 9990 10028 10471 3/5/2008 10058 10095 10568 3/6/2008 9737 9772 10274 3/7/2008 9619 9655 10125 3/10/2008 9360 9393 9873 3/11/2008 9717 9754 10202 3/12/2008 9737 9772 10199 3/13/2008 9871 9908 10342 3/14/2008 9679 9715 10150 3/17/2008 9433 9466 9882 3/18/2008 9842 9880 10301 3/19/2008 9562 9596 9989 3/20/2008 9777 9815 10167 3/21/2008 9777 9815 10167 3/24/2008 10038 10078 10433 3/25/2008 10115 10155 10539 3/26/2008 10050 10091 10497 3/27/2008 9892 9931 10364 3/28/2008 9775 9813 10277 3/31/2008 9856 9894 10359 4/1/2008 10204 10246 10690 4/2/2008 10225 10266 10741 4/3/2008 10271 10313 10779 4/4/2008 10348 10391 10877 4/7/2008 10357 10402 10899 4/8/2008 10371 10415 10919 4/9/2008 10188 10231 10751 4/10/2008 10359 10403 10916 4/11/2008 10150 10193 10704 4/14/2008 10148 10191 10712 4/15/2008 10142 10185 10743 4/16/2008 10403 10449 11044 4/17/2008 10344 10388 10977 4/18/2008 10507 10553 11149 4/21/2008 10536 10583 11195 4/22/2008 10367 10413 11006 4/23/2008 10402 10448 11047 4/24/2008 10503 10549 11086 4/25/2008 10649 10698 11278 4/28/2008 10665 10714 11293 4/29/2008 10605 10653 11189 4/30/2008 10592 10640 11198 5/1/2008 10740 10790 11279 5/2/2008 10713 10762 11300 5/5/2008 10705 10755 11317 5/6/2008 10822 10874 11424 5/7/2008 10655 10705 11305 5/8/2008 10747 10798 11421 5/9/2008 10744 10795 11446 5/12/2008 10870 10923 11544 5/13/2008 10913 10966 11632 5/14/2008 10934 10987 11635 5/15/2008 11070 11126 11786 5/16/2008 11089 11144 11850 5/19/2008 11020 11075 11792 5/20/2008 11007 11061 11799 5/21/2008 10807 10861 11597 5/22/2008 10861 10915 11635 5/23/2008 10747 10801 11515 5/26/2008 10747 10801 11515 5/27/2008 10865 10920 11590 5/28/2008 11049 11104 11753 5/29/2008 11088 11144 11758 5/30/2008 11164 11221 11867 6/2/2008 11063 11121 11769 6/3/2008 11057 11118 11770 6/4/2008 11086 11145 11782 6/5/2008 11378 11439 12098 6/6/2008 11061 11121 11806 6/9/2008 11103 11162 11845 6/10/2008 11013 11074 11726 6/11/2008 10824 10884 11539 6/12/2008 10801 10860 11541 6/13/2008 11024 11085 11750 6/16/2008 11143 11204 11870 6/17/2008 11155 11217 11921 6/18/2008 11072 11133 11840 6/19/2008 11201 11262 11902 6/20/2008 10978 11038 11687 6/23/2008 11001 11065 11728 6/24/2008 10847 10906 11552 6/25/2008 10967 11027 11628 6/26/2008 10703 10762 11336 6/27/2008 10694 10752 11318 6/30/2008 10617 10674 11261 7/1/2008 10692 10751 11292 7/2/2008 10344 10401 10916 7/3/2008 10236 10293 10807 7/4/2008 10236 10293 10807 7/7/2008 10198 10253 10743 7/8/2008 10413 10471 10921 7/9/2008 10298 10354 10817 7/10/2008 10311 10372 10880 7/11/2008 10281 10340 10839 7/14/2008 10186 10244 10792 7/15/2008 10090 10148 10677 7/16/2008 10281 10339 10865 7/17/2008 10348 10407 10960 7/18/2008 10323 10383 10929 7/21/2008 10392 10452 11016 7/22/2008 10523 10583 11096 7/23/2008 10569 10633 11089 7/24/2008 10348 10411 10813 7/25/2008 10334 10397 10853 7/28/2008 10184 10247 10730 7/29/2008 10355 10419 10908 7/30/2008 10503 10569 11106 7/31/2008 10315 10380 10886 8/1/2008 10307 10371 10856 8/4/2008 10096 10158 10608 8/5/2008 10257 10320 10777 8/6/2008 10292 10356 10878 8/7/2008 10225 10289 10748 8/8/2008 10452 10517 10956 8/11/2008 10519 10584 11012 8/12/2008 10380 10446 10933 8/13/2008 10471 10537 11029 8/14/2008 10561 10628 11104 8/15/2008 10557 10624 11085 8/18/2008 10415 10480 10943 8/19/2008 10327 10393 10867 8/20/2008 10396 10462 10932 8/21/2008 10423 10489 10971 8/22/2008 10513 10581 11039 8/25/2008 10294 10360 10816 8/26/2008 10344 10411 10874 8/27/2008 10488 10556 11017 8/28/2008 10624 10692 11159 8/29/2008 10505 10574 11030 9/1/2008 10505 10574 11030 9/2/2008 10432 10500 10880 9/3/2008 10348 10414 10749 9/4/2008 10119 10184 10503 9/5/2008 10171 10237 10546 9/8/2008 10304 10371 10616 9/9/2008 9927 9991 10192 9/10/2008 10063 10129 10355 9/11/2008 10127 10193 10419 9/12/2008 10196 10263 10531 9/15/2008 9787 9852 10080 9/16/2008 9987 10052 10271 9/17/2008 9562 9624 9832 9/18/2008 9958 10023 10218 9/19/2008 10309 10378 10624 9/22/2008 9942 10007 10242 9/23/2008 9823 9888 10117 9/24/2008 9704 9769 9996 9/25/2008 9829 9895 10093 9/26/2008 9725 9790 9974 9/29/2008 9051 9110 9249 9/30/2008 9376 9438 9604 10/1/2008 9278 9339 9447 10/2/2008 8782 8840 8909 10/3/2008 8545 8602 8693 10/6/2008 8186 8239 8309 10/7/2008 7763 7813 7866 10/8/2008 7694 7743 7793 10/9/2008 7160 7206 7282 10/10/2008 7173 7219 7207 10/13/2008 7844 7896 7990 10/14/2008 7621 7671 7796 10/15/2008 6931 6974 7058 10/16/2008 7246 7292 7335 10/17/2008 7239 7284 7328 10/20/2008 7604 7654 7687 10/21/2008 7396 7445 7465 10/22/2008 7014 7058 7026 10/23/2008 6799 6842 6804 10/24/2008 6607 6649 6619 10/27/2008 6332 6371 6335 10/28/2008 6881 6925 6853 10/29/2008 7050 7096 7041 10/30/2008 7281 7327 7312 10/31/2008 7514 7562 7520
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (03/01/06) -------- --------------- RYDEX S&P MIDCAP 400 PURE GROWTH ETF... -34.52% -10.23% S&P MIDCAP 400/CITIGROUP PURE GROWTH TOTAL RETURN INDEX................... -34.33% -9.94% S&P MIDCAP 400 GROWTH TOTAL RETURN INDEX................................ -36.74% -10.13%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 11 ANNUAL REPORT Rydex S&P MidCap 400 Pure Growth ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ PSYCHIATRIC SOLUTIONS, INC. 2.43% ENCORE ACQUISITION CO. 2.31% DREAMWORKS ANIMATION SKG, INC. -- CLASS A 2.26% PHILADELPHIA CONSOLIDATED HOLDING CO. 2.13% NVR, INC. 1.98% STRAYER EDUCATION, INC. 1.95% AEROPOSTALE, INC. 1.94% TOLL BROTHERS, INC. 1.92% DIGITAL RIVER, INC. 1.79% F5 NETWORKS, INC. 1.79% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 31.18 Health Care 18.51 Information Technology 17.96 Industrials 10.09 Energy 8.05 Financials 7.02 Consumer Staples 3.92 Materials 3.27
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 12 RYDEX S&P SMALLCAP 600 PURE VALUE ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P Small Cap 600 Pure Value ETF returned -36.48%. Over the year, its benchmark, the S&P SmallCap 600/CitiGroup Pure Value Total Return Index, turned in a -36.51%, which underperformed its S&P SmallCap 600 Value Total Return Index (whose return was -30.96) counterpart by more than 5%. Small-cap pure value trailed its traditional weight counterpart in three out of the four quarters this year. The pure style weighting to the hard- hit financials sector was the biggest reason for the underperformance. Within the financials sector, the banking industry was the largest contributor to the lag from the traditional style index. The pure style's weighting to the materials and energy industries also played roles in the underperformance. Surprisingly, an overweighting in retailing, specifically an overweight to Finish Line Sporting Apparel store (FINL), and zero exposure to a handful of other companies in the retail industry that suffered double-digit losses, helped the pure style small-cap index make up some ground. CUMULATIVE FUND PERFORMANCE: MARCH 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
RYDEX S&P S&P SMALLCAP S&P SMALLCAP SMALLCAP 600 600/CITIGROUP PURE 600 VALUE PURE VALUE VALUE TOTAL TOTAL RETURN ETF(A) RETURN INDEX(B) INDEX(C) ------------ ------------------ ------------ 3/1/2006 10000 10000 10000 3/2/2006 9938 9938 9980 3/3/2006 9904 9906 9941 3/6/2006 9854 9856 9847 3/7/2006 9714 9717 9722 3/8/2006 9735 9737 9726 3/9/2006 9691 9693 9684 3/10/2006 9836 9839 9817 3/13/2006 9844 9847 9832 3/14/2006 9932 9934 9948 3/15/2006 9982 9985 10026 3/16/2006 10018 10022 10048 3/17/2006 10075 10079 10085 3/20/2006 10107 10109 10090 3/21/2006 9961 9965 9981 3/22/2006 10133 10137 10114 3/23/2006 10166 10172 10144 3/24/2006 10234 10238 10204 3/27/2006 10237 10242 10199 3/28/2006 10174 10179 10154 3/29/2006 10349 10354 10317 3/30/2006 10317 10323 10296 3/31/2006 10338 10344 10336 4/3/2006 10296 10301 10288 4/4/2006 10354 10360 10337 4/5/2006 10372 10378 10391 4/6/2006 10367 10374 10386 4/7/2006 10247 10254 10259 4/10/2006 10185 10190 10214 4/11/2006 10062 10069 10085 4/12/2006 10120 10125 10134 4/13/2006 10127 10133 10153 4/14/2006 10127 10133 10153 4/17/2006 10109 10116 10153 4/18/2006 10338 10344 10424 4/19/2006 10450 10457 10535 4/20/2006 10432 10441 10500 4/21/2006 10393 10402 10476 4/24/2006 10338 10347 10407 4/25/2006 10328 10336 10379 4/26/2006 10346 10355 10374 4/27/2006 10307 10316 10303 4/28/2006 10359 10369 10350 5/1/2006 10330 10338 10347 5/2/2006 10450 10459 10427 5/3/2006 10455 10466 10448 5/4/2006 10489 10498 10566 5/5/2006 10585 10594 10651 5/8/2006 10596 10607 10665 5/9/2006 10588 10599 10663 5/10/2006 10486 10496 10608 5/11/2006 10182 10192 10358 5/12/2006 9979 9988 10159 5/15/2006 9951 9958 10095 5/16/2006 9956 9964 10089 5/17/2006 9815 9823 9937 5/18/2006 9740 9748 9860 5/19/2006 9823 9833 9925 5/22/2006 9787 9796 9854 5/23/2006 9704 9711 9791 5/24/2006 9774 9783 9824 5/25/2006 9922 9932 9985 5/26/2006 9888 9897 10005 5/29/2006 9888 9897 10005 5/30/2006 9649 9658 9755 5/31/2006 9769 9777 9880 6/1/2006 9945 9958 10066 6/2/2006 9961 9973 10084 6/5/2006 9688 9699 9801 6/6/2006 9623 9631 9730 6/7/2006 9602 9611 9688 6/8/2006 9662 9673 9689 6/9/2006 9584 9594 9625 6/12/2006 9376 9380 9385 6/13/2006 9238 9240 9272 6/14/2006 9233 9237 9310 6/15/2006 9524 9533 9615 6/16/2006 9438 9446 9525 6/19/2006 9295 9300 9379 6/20/2006 9251 9254 9334 6/21/2006 9402 9407 9504 6/22/2006 9438 9445 9488 6/23/2006 9449 9456 9498 6/26/2006 9576 9586 9626 6/27/2006 9436 9444 9475 6/28/2006 9485 9494 9506 6/29/2006 9821 9835 9847 6/30/2006 9917 9935 9918 7/3/2006 9956 9973 9986 7/4/2006 9956 9973 9986 7/5/2006 9860 9875 9858 7/6/2006 9912 9930 9897 7/7/2006 9761 9776 9745 7/10/2006 9805 9820 9771 7/11/2006 9870 9887 9830 7/12/2006 9678 9692 9650 7/13/2006 9477 9486 9462 7/14/2006 9391 9404 9373 7/17/2006 9324 9335 9293 7/18/2006 9397 9408 9354 7/19/2006 9680 9693 9642 7/20/2006 9446 9457 9383 7/21/2006 9306 9317 9221 7/24/2006 9563 9575 9456 7/25/2006 9670 9684 9554 7/26/2006 9599 9614 9498 7/27/2006 9490 9504 9388 7/28/2006 9704 9716 9588 7/31/2006 9714 9728 9593 8/1/2006 9560 9574 9467 8/2/2006 9584 9597 9548 8/3/2006 9691 9706 9676 8/4/2006 9625 9640 9646 8/7/2006 9576 9589 9573 8/8/2006 9449 9462 9480 8/9/2006 9376 9390 9398 8/10/2006 9433 9446 9464 8/11/2006 9319 9333 9376 8/14/2006 9371 9385 9413 8/15/2006 9542 9557 9621 8/16/2006 9651 9667 9770 8/17/2006 9678 9694 9780 8/18/2006 9711 9728 9795 8/21/2006 9672 9688 9714 8/22/2006 9735 9752 9744 8/23/2006 9618 9635 9604 8/24/2006 9581 9596 9582 8/25/2006 9592 9609 9591 8/28/2006 9688 9704 9686 8/29/2006 9802 9821 9795 8/30/2006 9831 9849 9842 8/31/2006 9839 9856 9850 9/1/2006 9875 9894 9884 9/4/2006 9875 9894 9884 9/5/2006 9982 10001 9985 9/6/2006 9789 9808 9789 9/7/2006 9688 9707 9719 9/8/2006 9717 9735 9752 9/11/2006 9675 9693 9725 9/12/2006 9878 9897 9942 9/13/2006 9984 10005 10036 9/14/2006 9927 9947 9981 9/15/2006 9983 10003 10017 9/18/2006 9965 9985 10015 9/19/2006 9921 9942 9972 9/20/2006 10022 10045 10092 9/21/2006 9939 9958 9990 9/22/2006 9905 9925 9903 9/25/2006 10007 10029 10015 9/26/2006 10022 10045 10062 9/27/2006 10095 10117 10111 9/28/2006 10072 10094 10092 9/29/2006 9939 9961 9977 10/2/2006 9861 9880 9893 10/3/2006 9913 9933 9907 10/4/2006 10066 10079 10090 10/5/2006 10155 10170 10211 10/6/2006 10082 10097 10155 10/9/2006 10176 10190 10225 10/10/2006 10204 10219 10248 10/11/2006 10160 10175 10216 10/12/2006 10373 10392 10416 10/13/2006 10436 10455 10483 10/16/2006 10519 10539 10587 10/17/2006 10493 10512 10523 10/18/2006 10472 10490 10474 10/19/2006 10524 10544 10520 10/20/2006 10472 10491 10438 10/23/2006 10495 10514 10465 10/24/2006 10547 10567 10494 10/25/2006 10615 10635 10573 10/26/2006 10717 10739 10658 10/27/2006 10573 10595 10523 10/30/2006 10623 10644 10578 10/31/2006 10519 10539 10518 11/1/2006 10307 10326 10343 11/2/2006 10265 10283 10299 11/3/2006 10270 10289 10321 11/6/2006 10385 10405 10451 11/7/2006 10396 10418 10470 11/8/2006 10506 10527 10547 11/9/2006 10396 10417 10450 11/10/2006 10498 10520 10535 11/13/2006 10579 10603 10589 11/14/2006 10768 10791 10760 11/15/2006 10849 10873 10831 11/16/2006 10849 10875 10802 11/17/2006 10778 10803 10755 11/20/2006 10823 10847 10794 11/21/2006 10862 10888 10833 11/22/2006 10857 10882 10845 11/23/2006 10857 10882 10845 11/24/2006 10865 10891 10849 11/27/2006 10629 10654 10587 11/28/2006 10668 10693 10612 11/29/2006 10757 10782 10748 11/30/2006 10794 10820 10778 12/1/2006 10752 10779 10719 12/4/2006 10967 10994 10910 12/5/2006 10978 11005 10938 12/6/2006 10985 11014 10925 12/7/2006 10959 10987 10875 12/8/2006 10946 10975 10856 12/11/2006 10959 10988 10854 12/12/2006 10946 10974 10801 12/13/2006 10928 10956 10804 12/14/2006 11025 11052 10868 12/15/2006 10988 11016 10850 12/18/2006 10852 10883 10727 12/19/2006 10841 10873 10727 12/20/2006 10886 10918 10772 12/21/2006 10902 10933 10739 12/22/2006 10860 10892 10695 12/25/2006 10860 10892 10695 12/26/2006 10983 11015 10811 12/27/2006 11150 11183 10948 12/28/2006 11097 11128 10908 12/29/2006 10995 11027 10815 1/1/2007 10995 11027 10815 1/2/2007 10995 11027 10815 1/3/2007 11084 11116 10824 1/4/2007 11087 11118 10840 1/5/2007 10827 10859 10641 1/8/2007 10825 10858 10658 1/9/2007 10851 10882 10681 1/10/2007 10848 10882 10692 1/11/2007 10990 11022 10838 1/12/2007 11053 11086 10904 1/15/2007 11053 11086 10904 1/16/2007 11066 11101 10876 1/17/2007 11037 11072 10853 1/18/2007 10969 11002 10741 1/19/2007 11061 11096 10833 1/22/2007 10969 11002 10732 1/23/2007 11045 11079 10836 1/24/2007 11185 11221 10947 1/25/2007 11079 11113 10823 1/26/2007 11137 11172 10866 1/29/2007 11179 11216 10918 1/30/2007 11256 11292 10994 1/31/2007 11319 11356 11041 2/1/2007 11419 11457 11149 2/2/2007 11471 11508 11166 2/5/2007 11447 11485 11114 2/6/2007 11495 11533 11179 2/7/2007 11547 11586 11258 2/8/2007 11492 11530 11231 2/9/2007 11369 11407 11114 2/12/2007 11345 11385 11083 2/13/2007 11437 11476 11185 2/14/2007 11429 11469 11213 2/15/2007 11440 11480 11226 2/16/2007 11487 11526 11255 2/19/2007 11487 11526 11255 2/20/2007 11592 11632 11361 2/21/2007 11618 11660 11384 2/22/2007 11652 11693 11397 2/23/2007 11597 11638 11355 2/26/2007 11605 11648 11327 2/27/2007 11185 11225 10936 2/28/2007 11274 11313 10936 3/1/2007 11198 11237 10902 3/2/2007 11016 11055 10710 3/5/2007 10769 10805 10487 3/6/2007 11014 11051 10722 3/7/2007 11024 11064 10702 3/8/2007 11074 11113 10787 3/9/2007 11074 11112 10834 3/12/2007 11100 11141 10874 3/13/2007 10827 10865 10610 3/14/2007 10914 10953 10701 3/15/2007 11022 11061 10817 3/16/2007 10965 11002 10760 3/19/2007 11076 11112 10861 3/20/2007 11155 11193 10958 3/21/2007 11302 11341 11136 3/22/2007 11349 11389 11132 3/23/2007 11360 11399 11163 3/26/2007 11354 11394 11142 3/27/2007 11252 11291 11050 3/28/2007 11189 11228 11004 3/29/2007 11247 11284 11049 3/30/2007 11218 11256 11049 4/2/2007 11299 11341 11092 4/3/2007 11394 11436 11187 4/4/2007 11334 11374 11176 4/5/2007 11360 11402 11189 4/6/2007 11360 11402 11189 4/9/2007 11368 11410 11182 4/10/2007 11402 11445 11228 4/11/2007 11307 11349 11128 4/12/2007 11389 11432 11208 4/13/2007 11476 11521 11272 4/16/2007 11613 11657 11434 4/17/2007 11568 11613 11398 4/18/2007 11524 11568 11350 4/19/2007 11474 11516 11297 4/20/2007 11624 11668 11445 4/23/2007 11595 11639 11427 4/24/2007 11571 11616 11409 4/25/2007 11671 11719 11489 4/26/2007 11714 11760 11516 4/27/2007 11637 11684 11474 4/30/2007 11418 11463 11267 5/1/2007 11487 11532 11334 5/2/2007 11706 11752 11511 5/3/2007 11669 11716 11519 5/4/2007 11703 11750 11565 5/7/2007 11698 11746 11570 5/8/2007 11692 11741 11561 5/9/2007 11756 11805 11623 5/10/2007 11524 11571 11405 5/11/2007 11626 11674 11554 5/14/2007 11505 11552 11457 5/15/2007 11400 11445 11359 5/16/2007 11463 11509 11434 5/17/2007 11386 11431 11377 5/18/2007 11468 11515 11455 5/21/2007 11595 11644 11583 5/22/2007 11711 11761 11683 5/23/2007 11634 11685 11627 5/24/2007 11492 11539 11462 5/25/2007 11595 11645 11540 5/28/2007 11595 11645 11540 5/29/2007 11711 11761 11662 5/30/2007 11758 11809 11732 5/31/2007 11779 11829 11782 6/1/2007 11914 11968 11887 6/4/2007 11969 12023 11906 6/5/2007 11835 11884 11797 6/6/2007 11703 11752 11672 6/7/2007 11487 11532 11446 6/8/2007 11584 11632 11568 6/11/2007 11563 11612 11554 6/12/2007 11389 11435 11391 6/13/2007 11503 11549 11548 6/14/2007 11603 11650 11631 6/15/2007 11760 11810 11786 6/18/2007 11728 11781 11748 6/19/2007 11776 11828 11780 6/20/2007 11641 11692 11616 6/21/2007 11660 11710 11647 6/22/2007 11515 11563 11533 6/25/2007 11438 11485 11452 6/26/2007 11383 11430 11395 6/27/2007 11512 11559 11563 6/28/2007 11549 11599 11578 6/29/2007 11488 11536 11518 7/2/2007 11665 11716 11676 7/3/2007 11681 11733 11697 7/4/2007 11681 11733 11697 7/5/2007 11700 11751 11725 7/6/2007 11708 11758 11728 7/9/2007 11766 11819 11768 7/10/2007 11530 11581 11547 7/11/2007 11589 11638 11596 7/12/2007 11785 11835 11830 7/13/2007 11792 11844 11874 7/16/2007 11705 11758 11793 7/17/2007 11700 11752 11826 7/18/2007 11618 11669 11777 7/19/2007 11687 11739 11885 7/20/2007 11456 11508 11667 7/23/2007 11456 11506 11659 7/24/2007 11123 11170 11345 7/25/2007 11123 11169 11352 7/26/2007 10739 10784 11026 7/27/2007 10522 10565 10813 7/30/2007 10602 10646 10927 7/31/2007 10559 10603 10836 8/1/2007 10498 10541 10838 8/2/2007 10549 10593 10915 8/3/2007 10109 10148 10466 8/6/2007 10133 10172 10587 8/7/2007 10099 10139 10632 8/8/2007 10236 10277 10801 8/9/2007 10022 10062 10640 8/10/2007 10295 10336 10857 8/13/2007 10181 10221 10734 8/14/2007 9953 9992 10501 8/15/2007 9784 9822 10323 8/16/2007 10041 10080 10557 8/17/2007 10271 10313 10804 8/20/2007 10260 10303 10829 8/21/2007 10310 10355 10863 8/22/2007 10451 10495 11006 8/23/2007 10326 10370 10882 8/24/2007 10435 10479 11037 8/27/2007 10318 10364 10911 8/28/2007 10019 10062 10595 8/29/2007 10260 10305 10857 8/30/2007 10221 10263 10803 8/31/2007 10324 10369 10948 9/3/2007 10324 10369 10948 9/4/2007 10337 10382 11020 9/5/2007 10223 10268 10896 9/6/2007 10189 10233 10911 9/7/2007 9980 10022 10663 9/10/2007 9876 9917 10571 9/11/2007 10038 10081 10750 9/12/2007 9945 9988 10680 9/13/2007 9945 9989 10702 9/14/2007 10017 10061 10755 9/17/2007 9908 9951 10655 9/18/2007 10348 10396 11107 9/19/2007 10541 10592 11262 9/20/2007 10419 10468 11169 9/21/2007 10401 10450 11174 9/24/2007 10261 10307 11059 9/25/2007 10136 10182 10987 9/26/2007 10179 10227 11068 9/27/2007 10192 10240 11100 9/28/2007 10065 10111 10977 10/1/2007 10307 10356 11241 10/2/2007 10342 10390 11339 10/3/2007 10273 10320 11241 10/4/2007 10307 10355 11252 10/5/2007 10499 10548 11487 10/8/2007 10379 10427 11386 10/9/2007 10472 10521 11466 10/10/2007 10382 10430 11424 10/11/2007 10280 10330 11300 10/12/2007 10323 10372 11379 10/15/2007 10137 10184 11195 10/16/2007 10012 10060 11077 10/17/2007 9969 10016 11067 10/18/2007 9964 10010 11055 10/19/2007 9612 9657 10712 10/22/2007 9831 9877 10899 10/23/2007 9894 9940 10990 10/24/2007 9809 9857 10918 10/25/2007 9748 9793 10863 10/26/2007 9918 9967 11051 10/29/2007 9860 9906 11025 10/30/2007 9862 9910 10983 10/31/2007 9953 9989 11110 11/1/2007 9495 9528 10658 11/2/2007 9426 9459 10667 11/5/2007 9301 9338 10572 11/6/2007 9436 9471 10724 11/7/2007 9074 9106 10354 11/8/2007 9250 9281 10472 11/9/2007 9141 9177 10357 11/12/2007 9194 9227 10288 11/13/2007 9495 9533 10579 11/14/2007 9330 9368 10482 11/15/2007 9285 9318 10382 11/16/2007 9154 9189 10311 11/19/2007 8931 8963 10081 11/20/2007 8925 8955 10076 11/21/2007 8800 8832 9954 11/22/2007 8800 8832 9954 11/23/2007 8994 9029 10162 11/26/2007 8726 8754 9863 11/27/2007 8824 8856 9976 11/28/2007 9090 9125 10329 11/29/2007 8965 9001 10273 11/30/2007 9013 9049 10328 12/3/2007 8880 8914 10192 12/4/2007 8784 8818 10090 12/5/2007 8915 8952 10258 12/6/2007 9242 9281 10574 12/7/2007 9239 9278 10549 12/10/2007 9311 9352 10630 12/11/2007 9005 9043 10285 12/12/2007 9016 9053 10332 12/13/2007 9018 9056 10294 12/14/2007 8827 8864 10061 12/17/2007 8715 8750 9881 12/18/2007 8893 8929 10044 12/19/2007 8912 8948 10061 12/20/2007 9026 9066 10209 12/21/2007 9333 9374 10487 12/24/2007 9437 9471 10612 12/25/2007 9437 9471 10612 12/26/2007 9405 9470 10603 12/27/2007 9101 9156 10300 12/28/2007 8987 9040 10275 12/31/2007 8923 8975 10215 1/1/2008 8923 8975 10215 1/2/2008 8794 8845 10068 1/3/2008 8519 8563 9912 1/4/2008 8193 8233 9585 1/7/2008 8278 8320 9645 1/8/2008 7968 8005 9347 1/9/2008 7979 8015 9453 1/10/2008 8118 8157 9558 1/11/2008 7966 8002 9349 1/14/2008 8049 8086 9435 1/15/2008 7864 7898 9235 1/16/2008 8102 8142 9309 1/17/2008 7893 7928 9056 1/18/2008 7776 7809 8971 1/21/2008 7776 7809 8971 1/22/2008 7896 7932 9010 1/23/2008 8487 8531 9408 1/24/2008 8495 8542 9376 1/25/2008 8457 8502 9333 1/28/2008 8813 8865 9558 1/29/2008 8912 8966 9631 1/30/2008 8891 8943 9540 1/31/2008 9345 9406 9833 2/1/2008 9551 9616 10072 2/4/2008 9401 9463 9943 2/5/2008 9080 9136 9655 2/6/2008 9059 9115 9580 2/7/2008 9161 9219 9715 2/8/2008 9059 9115 9645 2/11/2008 9027 9083 9644 2/12/2008 9086 9144 9725 2/13/2008 9235 9296 9933 2/14/2008 8965 9020 9699 2/15/2008 8864 8917 9638 2/18/2008 8864 8917 9638 2/19/2008 8856 8908 9654 2/20/2008 9054 9111 9801 2/21/2008 8735 8787 9601 2/22/2008 8762 8814 9634 2/25/2008 8933 8989 9846 2/26/2008 9040 9097 9953 2/27/2008 9059 9114 9925 2/28/2008 8813 8866 9764 2/29/2008 8487 8535 9457 3/3/2008 8455 8503 9455 3/4/2008 8476 8526 9427 3/5/2008 8409 8457 9434 3/6/2008 8126 8173 9176 3/7/2008 8142 8189 9162 3/10/2008 8011 8056 8981 3/11/2008 8385 8435 9372 3/12/2008 8241 8289 9258 3/13/2008 8471 8523 9475 3/14/2008 8241 8290 9249 3/17/2008 8169 8217 9132 3/18/2008 8551 8604 9550 3/19/2008 8401 8451 9312 3/20/2008 8747 8803 9567 3/21/2008 8747 8803 9567 3/24/2008 9035 9097 9798 3/25/2008 9131 9194 9846 3/26/2008 9046 9109 9776 3/27/2008 8763 8819 9586 3/28/2008 8618 8672 9470 3/31/2008 8698 8755 9556 4/1/2008 9099 9162 9906 4/2/2008 9118 9181 9950 4/3/2008 9026 9087 9952 4/4/2008 8962 9023 9919 4/7/2008 8938 8998 9903 4/8/2008 8930 8990 9881 4/9/2008 8559 8616 9661 4/10/2008 8650 8709 9758 4/11/2008 8379 8435 9504 4/14/2008 8325 8381 9452 4/15/2008 8414 8470 9557 4/16/2008 8666 8726 9869 4/17/2008 8610 8668 9796 4/18/2008 8776 8837 9945 4/21/2008 8604 8664 9852 4/22/2008 8392 8448 9677 4/23/2008 8379 8435 9690 4/24/2008 8583 8641 9843 4/25/2008 8621 8681 9900 4/28/2008 8666 8725 9966 4/29/2008 8591 8651 9875 4/30/2008 8483 8542 9817 5/1/2008 8688 8748 10040 5/2/2008 8631 8690 10000 5/5/2008 8521 8580 9955 5/6/2008 8513 8571 9985 5/7/2008 8282 8338 9817 5/8/2008 8277 8332 9829 5/9/2008 8287 8344 9832 5/12/2008 8502 8561 10018 5/13/2008 8561 8621 10085 5/14/2008 8548 8608 10089 5/15/2008 8596 8656 10191 5/16/2008 8516 8575 10158 5/19/2008 8505 8564 10139 5/20/2008 8435 8494 10076 5/21/2008 8330 8387 9984 5/22/2008 8432 8490 10051 5/23/2008 8328 8384 9924 5/26/2008 8328 8384 9924 5/27/2008 8475 8533 10065 5/28/2008 8508 8567 10102 5/29/2008 8647 8710 10193 5/30/2008 8637 8700 10228 6/2/2008 8473 8533 10128 6/3/2008 8481 8541 10104 6/4/2008 8575 8635 10173 6/5/2008 8776 8843 10408 6/6/2008 8443 8501 10073 6/9/2008 8322 8378 9973 6/10/2008 8354 8412 9975 6/11/2008 8075 8125 9755 6/12/2008 8131 8184 9797 6/13/2008 8287 8343 9972 6/16/2008 8406 8464 10095 6/17/2008 8255 8312 9990 6/18/2008 8166 8221 9920 6/19/2008 8266 8322 10024 6/20/2008 8121 8175 9880 6/23/2008 7944 7980 9741 6/24/2008 7831 7864 9615 6/25/2008 7971 8008 9730 6/26/2008 7737 7770 9490 6/27/2008 7737 7769 9425 6/30/2008 7568 7595 9321 7/1/2008 7627 7657 9355 7/2/2008 7378 7404 9089 7/3/2008 7324 7349 9013 7/4/2008 7324 7349 9013 7/7/2008 7241 7265 8912 7/8/2008 7595 7624 9241 7/9/2008 7278 7304 8955 7/10/2008 7295 7320 9043 7/11/2008 7316 7342 9080 7/14/2008 7132 7156 8907 7/15/2008 7084 7104 8860 7/16/2008 7511 7537 9223 7/17/2008 7776 7805 9407 7/18/2008 7709 7738 9365 7/21/2008 7746 7775 9416 7/22/2008 8071 8104 9687 7/23/2008 8201 8233 9775 7/24/2008 7914 7944 9479 7/25/2008 8020 8050 9587 7/28/2008 7784 7814 9408 7/29/2008 8139 8170 9690 7/30/2008 8066 8099 9703 7/31/2008 7995 8028 9630 8/1/2008 7987 8019 9651 8/4/2008 7874 7904 9532 8/5/2008 8193 8224 9832 8/6/2008 8198 8229 9851 8/7/2008 7976 8008 9694 8/8/2008 8374 8408 10019 8/11/2008 8596 8631 10269 8/12/2008 8509 8543 10172 8/13/2008 8466 8501 10184 8/14/2008 8574 8608 10267 8/15/2008 8612 8649 10294 8/18/2008 8477 8513 10132 8/19/2008 8271 8306 9954 8/20/2008 8261 8294 9954 8/21/2008 8139 8172 9857 8/22/2008 8358 8393 10062 8/25/2008 8093 8125 9831 8/26/2008 8160 8194 9874 8/27/2008 8261 8294 9982 8/28/2008 8431 8467 10174 8/29/2008 8374 8409 10074 9/1/2008 8374 8409 10074 9/2/2008 8442 8478 10086 9/3/2008 8615 8654 10152 9/4/2008 8320 8356 9836 9/5/2008 8371 8408 9862 9/8/2008 8715 8756 10107 9/9/2008 8431 8471 9789 9/10/2008 8555 8598 9934 9/11/2008 8645 8689 10001 9/12/2008 8677 8722 10044 9/15/2008 8328 8372 9642 9/16/2008 8569 8614 9965 9/17/2008 8142 8183 9511 9/18/2008 8864 8911 10167 9/19/2008 9136 9186 10530 9/22/2008 8654 8701 10010 9/23/2008 8551 8597 9896 9/24/2008 8443 8489 9737 9/25/2008 8535 8580 9844 9/26/2008 8505 8550 9869 9/29/2008 8029 8068 9274 9/30/2008 8205 8249 9541 10/1/2008 8259 8303 9526 10/2/2008 7813 7850 9054 10/3/2008 7565 7600 8804 10/6/2008 7235 7268 8506 10/7/2008 6794 6821 8004 10/8/2008 6628 6654 7817 10/9/2008 5849 5867 7119 10/10/2008 6162 6183 7460 10/13/2008 6649 6675 8094 10/14/2008 6453 6479 7906 10/15/2008 5859 5879 7189 10/16/2008 6271 6293 7621 10/17/2008 6115 6137 7487 10/20/2008 6276 6297 7759 10/21/2008 6088 6109 7518 10/22/2008 5778 5795 7106 10/23/2008 5571 5586 6924 10/24/2008 5315 5329 6648 10/27/2008 5080 5091 6355 10/28/2008 5489 5503 6881 10/29/2008 5590 5605 7002 10/30/2008 5908 5926 7316 10/31/2008 6322 6343 7670
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (03/01/06) -------- --------------- RYDEX S&P SMALLCAP 600 PURE VALUE ETF............................. -36.48% -15.77% S&P SMALLCAP 600/CITIGROUP PURE VALUE TOTAL RETURN INDEX.......... -36.51% -15.68% S&P SMALLCAP 600 VALUE TOTAL RETURN INDEX......................... -30.96% -9.46%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 13 ANNUAL REPORT Rydex S&P SmallCap 600 Pure Value ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ FINISH LINE, INC. -- CLASS A 5.81% FIRST BANCORP. 1.93% JO-ANN STORES, INC. 1.73% HAVERTY FURNITURE COS., INC. 1.71% ARKANSAS BEST CORP. 1.68% STANDEX INTERNATIONAL CORP. 1.60% LACLEDE GROUP, INC. 1.59% M/I HOMES, INC. 1.55% WABASH NATIONAL CORP. 1.50% LA-Z-BOY, INC. 1.45% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 29.83 Financials 28.38 Industrials 15.00 Utilities 8.97 Materials 6.23 Information Technology 4.89 Consumer Staples 4.36 Health Care 2.13 Energy 0.21
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 14 RYDEX S&P SMALLCAP 600 PURE GROWTH ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P SmallCap 600 Pure Growth ETF returned -35.05%. Over the year, its benchmark, the S&P SmallCap 600/CitiGroup Pure Growth Total Return Index, turned in a -35.14% return, which slightly underperformed the counterpart, the S&P SmallCap 600 Growth Total Return Index, whose return was -34.26%. The pure style's weighting to the information technology sector was the biggest reason for the underperformance. Small-cap pure value beat its traditional value counterpart two out of the four quarters this year, including the fourth quarter, where it nevertheless fell almost 23%. Pure style benefited from weighting in the consumer discretionary sector -- especially the consumer durables and apparel industry -- which helped the fund outperform its traditional (cap-weight) benchmark. Specifically, the fund had a slight underweight to shoemaker Crocs, Inc (CROX), which was down a dismal 96.64% for the year. CUMULATIVE FUND PERFORMANCE: MARCH 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
RYDEX S&P S&P SMALLCAP S&P SMALLCAP SMALLCAP 600 600/CITIGROUP PURE 600 GROWTH PURE GROWTH GROWTH TOTAL TOTAL RETURN ETF(A) RETURN INDEX(B) INDEX(C) ------------ ------------------ ------------ 3/1/2006 10000 10001 10000 3/2/2006 9969 9971 9995 3/3/2006 9964 9965 9967 3/6/2006 9845 9847 9842 3/7/2006 9748 9749 9726 3/8/2006 9776 9778 9741 3/9/2006 9738 9738 9700 3/10/2006 9852 9855 9804 3/13/2006 9875 9878 9838 3/14/2006 9919 9919 9941 3/15/2006 10015 10017 10018 3/16/2006 10048 10051 10064 3/17/2006 10084 10087 10079 3/20/2006 10071 10074 10080 3/21/2006 10046 10049 10028 3/22/2006 10145 10147 10130 3/23/2006 10193 10197 10170 3/24/2006 10244 10247 10219 3/27/2006 10229 10232 10212 3/28/2006 10178 10182 10187 3/29/2006 10321 10324 10322 3/30/2006 10310 10315 10308 3/31/2006 10359 10361 10353 4/3/2006 10252 10256 10269 4/4/2006 10313 10317 10337 4/5/2006 10328 10333 10370 4/6/2006 10328 10332 10353 4/7/2006 10206 10211 10230 4/10/2006 10173 10177 10205 4/11/2006 10053 10058 10079 4/12/2006 10112 10116 10128 4/13/2006 10142 10148 10159 4/14/2006 10142 10148 10159 4/17/2006 10145 10151 10170 4/18/2006 10366 10371 10402 4/19/2006 10445 10450 10507 4/20/2006 10443 10448 10488 4/21/2006 10374 10379 10438 4/24/2006 10366 10371 10383 4/25/2006 10343 10349 10330 4/26/2006 10404 10410 10338 4/27/2006 10346 10353 10287 4/28/2006 10394 10402 10336 5/1/2006 10336 10343 10309 5/2/2006 10407 10413 10362 5/3/2006 10397 10403 10347 5/4/2006 10473 10481 10421 5/5/2006 10605 10613 10553 5/8/2006 10608 10616 10560 5/9/2006 10585 10592 10554 5/10/2006 10499 10506 10533 5/11/2006 10254 10262 10309 5/12/2006 10089 10098 10118 5/15/2006 10094 10102 10094 5/16/2006 10153 10161 10127 5/17/2006 10013 10020 9974 5/18/2006 9878 9884 9861 5/19/2006 9901 9908 9881 5/22/2006 9847 9853 9808 5/23/2006 9791 9798 9760 5/24/2006 9791 9797 9742 5/25/2006 9957 9964 9910 5/26/2006 10031 10039 9959 5/29/2006 10031 10039 9959 5/30/2006 9779 9787 9723 5/31/2006 9903 9912 9861 6/1/2006 10056 10065 10023 6/2/2006 10051 10061 10030 6/5/2006 9791 9799 9754 6/6/2006 9741 9746 9696 6/7/2006 9705 9712 9647 6/8/2006 9682 9689 9620 6/9/2006 9636 9642 9590 6/12/2006 9405 9410 9358 6/13/2006 9265 9268 9241 6/14/2006 9333 9338 9290 6/15/2006 9588 9595 9565 6/16/2006 9532 9536 9510 6/19/2006 9361 9367 9343 6/20/2006 9321 9325 9301 6/21/2006 9491 9497 9466 6/22/2006 9461 9466 9428 6/23/2006 9527 9534 9488 6/26/2006 9598 9606 9563 6/27/2006 9440 9444 9411 6/28/2006 9456 9462 9435 6/29/2006 9756 9767 9742 6/30/2006 9814 9825 9824 7/3/2006 9908 9919 9908 7/4/2006 9908 9919 9908 7/5/2006 9791 9802 9790 7/6/2006 9832 9844 9804 7/7/2006 9695 9706 9675 7/10/2006 9649 9661 9657 7/11/2006 9715 9726 9715 7/12/2006 9537 9549 9563 7/13/2006 9354 9364 9383 7/14/2006 9267 9278 9302 7/17/2006 9196 9207 9221 7/18/2006 9181 9192 9233 7/19/2006 9412 9423 9478 7/20/2006 9168 9178 9219 7/21/2006 9061 9072 9093 7/24/2006 9333 9345 9322 7/25/2006 9435 9448 9419 7/26/2006 9367 9380 9369 7/27/2006 9242 9254 9248 7/28/2006 9420 9434 9416 7/31/2006 9496 9511 9471 8/1/2006 9364 9376 9356 8/2/2006 9415 9428 9420 8/3/2006 9478 9491 9508 8/4/2006 9438 9453 9469 8/7/2006 9311 9324 9388 8/8/2006 9232 9245 9315 8/9/2006 9148 9160 9229 8/10/2006 9171 9183 9276 8/11/2006 9115 9126 9204 8/14/2006 9127 9141 9214 8/15/2006 9306 9319 9407 8/16/2006 9410 9423 9537 8/17/2006 9448 9461 9562 8/18/2006 9456 9471 9571 8/21/2006 9351 9366 9475 8/22/2006 9392 9406 9498 8/23/2006 9272 9286 9366 8/24/2006 9265 9279 9356 8/25/2006 9265 9278 9360 8/28/2006 9341 9355 9436 8/29/2006 9410 9424 9511 8/30/2006 9438 9453 9542 8/31/2006 9395 9410 9536 9/1/2006 9395 9410 9556 9/4/2006 9395 9410 9556 9/5/2006 9412 9429 9607 9/6/2006 9181 9195 9408 9/7/2006 9166 9180 9376 9/8/2006 9194 9208 9391 9/11/2006 9176 9190 9371 9/12/2006 9402 9419 9577 9/13/2006 9501 9517 9670 9/14/2006 9471 9487 9616 9/15/2006 9496 9514 9644 9/18/2006 9514 9531 9660 9/19/2006 9461 9478 9611 9/20/2006 9568 9584 9683 9/21/2006 9517 9535 9615 9/22/2006 9415 9431 9505 9/25/2006 9514 9531 9605 9/26/2006 9552 9570 9660 9/27/2006 9573 9590 9677 9/28/2006 9562 9581 9667 9/29/2006 9463 9482 9584 10/2/2006 9364 9380 9476 10/3/2006 9333 9351 9452 10/4/2006 9545 9563 9639 10/5/2006 9644 9664 9747 10/6/2006 9598 9617 9700 10/9/2006 9700 9721 9758 10/10/2006 9710 9730 9780 10/11/2006 9657 9678 9736 10/12/2006 9832 9853 9919 10/13/2006 9886 9909 9974 10/16/2006 9964 9986 10082 10/17/2006 9868 9890 9990 10/18/2006 9865 9888 9971 10/19/2006 9898 9920 10012 10/20/2006 9878 9902 9959 10/23/2006 9929 9952 9980 10/24/2006 9931 9955 9991 10/25/2006 9977 10003 10061 10/26/2006 10099 10123 10151 10/27/2006 9977 10002 10034 10/30/2006 9995 10018 10059 10/31/2006 9947 9971 10007 11/1/2006 9776 9800 9860 11/2/2006 9763 9789 9844 11/3/2006 9789 9812 9881 11/6/2006 9926 9952 10019 11/7/2006 9977 10003 10051 11/8/2006 10041 10066 10112 11/9/2006 9975 10000 10028 11/10/2006 10051 10078 10089 11/13/2006 10074 10100 10109 11/14/2006 10206 10234 10257 11/15/2006 10341 10368 10354 11/16/2006 10336 10364 10313 11/17/2006 10331 10358 10302 11/20/2006 10333 10362 10316 11/21/2006 10374 10401 10357 11/22/2006 10366 10395 10364 11/23/2006 10366 10395 10364 11/24/2006 10364 10392 10349 11/27/2006 10140 10168 10132 11/28/2006 10163 10191 10157 11/29/2006 10287 10317 10291 11/30/2006 10303 10331 10319 12/1/2006 10252 10281 10284 12/4/2006 10394 10425 10418 12/5/2006 10460 10491 10474 12/6/2006 10471 10501 10481 12/7/2006 10430 10460 10430 12/8/2006 10440 10471 10429 12/11/2006 10430 10460 10422 12/12/2006 10394 10424 10368 12/13/2006 10392 10422 10366 12/14/2006 10448 10478 10425 12/15/2006 10366 10396 10392 12/18/2006 10234 10264 10261 12/19/2006 10270 10299 10291 12/20/2006 10310 10342 10326 12/21/2006 10257 10289 10277 12/22/2006 10242 10272 10228 12/25/2006 10242 10272 10228 12/26/2006 10318 10348 10293 12/27/2006 10425 10457 10404 12/28/2006 10392 10423 10373 12/29/2006 10287 10319 10279 1/1/2007 10287 10319 10279 1/2/2007 10287 10319 10279 1/3/2007 10242 10273 10228 1/4/2007 10244 10278 10243 1/5/2007 10130 10163 10122 1/8/2007 10145 10178 10148 1/9/2007 10150 10182 10155 1/10/2007 10140 10173 10148 1/11/2007 10226 10258 10242 1/12/2007 10315 10350 10332 1/15/2007 10315 10350 10332 1/16/2007 10280 10314 10299 1/17/2007 10265 10299 10299 1/18/2007 10148 10181 10172 1/19/2007 10211 10245 10246 1/22/2007 10094 10127 10151 1/23/2007 10204 10238 10269 1/24/2007 10305 10340 10363 1/25/2007 10191 10225 10259 1/26/2007 10219 10254 10298 1/29/2007 10280 10314 10341 1/30/2007 10328 10364 10411 1/31/2007 10402 10436 10487 2/1/2007 10537 10574 10623 2/2/2007 10590 10626 10661 2/5/2007 10529 10567 10616 2/6/2007 10590 10628 10661 2/7/2007 10639 10675 10719 2/8/2007 10654 10690 10717 2/9/2007 10544 10580 10608 2/12/2007 10504 10541 10572 2/13/2007 10572 10611 10649 2/14/2007 10611 10649 10699 2/15/2007 10659 10697 10730 2/16/2007 10700 10737 10777 2/19/2007 10700 10737 10777 2/20/2007 10801 10840 10873 2/21/2007 10834 10873 10920 2/22/2007 10837 10877 10918 2/23/2007 10801 10841 10896 2/26/2007 10773 10812 10848 2/27/2007 10369 10406 10463 2/28/2007 10384 10421 10476 3/1/2007 10343 10380 10448 3/2/2007 10130 10166 10257 3/5/2007 9959 9995 10094 3/6/2007 10158 10196 10281 3/7/2007 10165 10202 10287 3/8/2007 10237 10275 10364 3/9/2007 10280 10318 10404 3/12/2007 10333 10372 10453 3/13/2007 10137 10174 10232 3/14/2007 10221 10261 10304 3/15/2007 10295 10335 10397 3/16/2007 10252 10290 10366 3/19/2007 10364 10404 10484 3/20/2007 10435 10474 10561 3/21/2007 10605 10647 10721 3/22/2007 10669 10710 10772 3/23/2007 10725 10766 10826 3/26/2007 10728 10770 10813 3/27/2007 10651 10692 10743 3/28/2007 10598 10639 10701 3/29/2007 10626 10668 10731 3/30/2007 10613 10656 10724 4/2/2007 10639 10682 10779 4/3/2007 10735 10777 10874 4/4/2007 10712 10754 10877 4/5/2007 10786 10830 10918 4/6/2007 10786 10830 10918 4/9/2007 10748 10791 10898 4/10/2007 10778 10822 10934 4/11/2007 10715 10758 10874 4/12/2007 10758 10803 10946 4/13/2007 10794 10838 10985 4/16/2007 10934 10979 11115 4/17/2007 10911 10955 11088 4/18/2007 10852 10896 11029 4/19/2007 10817 10861 10994 4/20/2007 10918 10964 11103 4/23/2007 10880 10925 11092 4/24/2007 10878 10923 11087 4/25/2007 10931 10977 11174 4/26/2007 10967 11012 11195 4/27/2007 10949 10995 11177 4/30/2007 10763 10810 10993 5/1/2007 10776 10822 11028 5/2/2007 10946 10992 11211 5/3/2007 10944 10990 11211 5/4/2007 11028 11076 11273 5/7/2007 11018 11065 11270 5/8/2007 10992 11041 11247 5/9/2007 11063 11112 11307 5/10/2007 10901 10947 11116 5/11/2007 10990 11038 11228 5/14/2007 10929 10978 11168 5/15/2007 10837 10885 11085 5/16/2007 10918 10967 11152 5/17/2007 10860 10908 11113 5/18/2007 10959 11007 11204 5/21/2007 11104 11153 11342 5/22/2007 11175 11225 11405 5/23/2007 11112 11162 11353 5/24/2007 10936 10986 11186 5/25/2007 11033 11082 11279 5/28/2007 11033 11082 11279 5/29/2007 11117 11167 11354 5/30/2007 11203 11254 11444 5/31/2007 11259 11311 11503 6/1/2007 11313 11365 11577 6/4/2007 11346 11399 11611 6/5/2007 11280 11332 11532 6/6/2007 11157 11210 11407 6/7/2007 10979 11030 11199 6/8/2007 11096 11147 11314 6/11/2007 11068 11119 11297 6/12/2007 10982 11032 11192 6/13/2007 11099 11150 11323 6/14/2007 11173 11224 11408 6/15/2007 11297 11351 11532 6/18/2007 11307 11362 11520 6/19/2007 11340 11394 11564 6/20/2007 11231 11284 11437 6/21/2007 11259 11312 11477 6/22/2007 11162 11214 11390 6/25/2007 11129 11181 11316 6/26/2007 11068 11122 11256 6/27/2007 11256 11312 11419 6/28/2007 11287 11342 11429 6/29/2007 11228 11282 11391 7/2/2007 11328 11383 11509 7/3/2007 11358 11415 11546 7/4/2007 11358 11415 11546 7/5/2007 11394 11449 11584 7/6/2007 11396 11454 11602 7/9/2007 11440 11498 11638 7/10/2007 11262 11318 11449 7/11/2007 11340 11396 11529 7/12/2007 11486 11544 11691 7/13/2007 11496 11554 11707 7/16/2007 11432 11489 11641 7/17/2007 11432 11490 11659 7/18/2007 11412 11470 11625 7/19/2007 11468 11527 11712 7/20/2007 11318 11374 11537 7/23/2007 11325 11383 11545 7/24/2007 11071 11127 11290 7/25/2007 11050 11107 11276 7/26/2007 10821 10876 11051 7/27/2007 10722 10776 10938 7/30/2007 10786 10840 11028 7/31/2007 10664 10716 10925 8/1/2007 10669 10721 10965 8/2/2007 10796 10850 11103 8/3/2007 10501 10551 10790 8/6/2007 10684 10736 10959 8/7/2007 10747 10801 11069 8/8/2007 10893 10946 11231 8/9/2007 10801 10855 11089 8/10/2007 10796 10851 11084 8/13/2007 10725 10777 11023 8/14/2007 10562 10615 10852 8/15/2007 10473 10524 10723 8/16/2007 10582 10634 10841 8/17/2007 10798 10852 11087 8/20/2007 10842 10895 11128 8/21/2007 10842 10897 11140 8/22/2007 10943 10998 11260 8/23/2007 10786 10840 11125 8/24/2007 10931 10985 11286 8/27/2007 10821 10874 11174 8/28/2007 10554 10603 10895 8/29/2007 10758 10809 11122 8/30/2007 10730 10781 11093 8/31/2007 10849 10902 11229 9/3/2007 10849 10902 11229 9/4/2007 10923 10979 11312 9/5/2007 10885 10940 11241 9/6/2007 10915 10972 11273 9/7/2007 10742 10794 11080 9/10/2007 10697 10746 11019 9/11/2007 10852 10907 11195 9/12/2007 10831 10885 11174 9/13/2007 10847 10902 11195 9/14/2007 10923 10979 11253 9/17/2007 10814 10868 11152 9/18/2007 11142 11202 11509 9/19/2007 11254 11317 11634 9/20/2007 11165 11226 11552 9/21/2007 11195 11259 11568 9/24/2007 11086 11146 11481 9/25/2007 11091 11153 11473 9/26/2007 11162 11225 11560 9/27/2007 11216 11280 11625 9/28/2007 11132 11194 11542 10/1/2007 11374 11440 11790 10/2/2007 11455 11523 11872 10/3/2007 11396 11463 11809 10/4/2007 11450 11519 11853 10/5/2007 11626 11695 12038 10/8/2007 11531 11600 11977 10/9/2007 11610 11680 12036 10/10/2007 11613 11682 12034 10/11/2007 11447 11514 11879 10/12/2007 11506 11573 11956 10/15/2007 11371 11436 11832 10/16/2007 11310 11374 11745 10/17/2007 11290 11355 11749 10/18/2007 11282 11346 11730 10/19/2007 10961 11025 11398 10/22/2007 11139 11204 11525 10/23/2007 11259 11325 11654 10/24/2007 11134 11198 11555 10/25/2007 11101 11166 11506 10/26/2007 11315 11380 11727 10/29/2007 11325 11393 11751 10/30/2007 11269 11336 11662 10/31/2007 11432 11499 11836 11/1/2007 11040 11098 11341 11/2/2007 11048 11101 11368 11/5/2007 10941 10995 11238 11/6/2007 11027 11097 11381 11/7/2007 10727 10785 11039 11/8/2007 10722 10786 11075 11/9/2007 10554 10641 10931 11/12/2007 10480 10571 10827 11/13/2007 10786 10880 11135 11/14/2007 10676 10768 11039 11/15/2007 10554 10643 10916 11/16/2007 10554 10640 10910 11/19/2007 10350 10423 10665 11/20/2007 10368 10437 10669 11/21/2007 10223 10296 10531 11/22/2007 10223 10296 10531 11/23/2007 10386 10463 10721 11/26/2007 10223 10281 10515 11/27/2007 10292 10350 10577 11/28/2007 10613 10678 10894 11/29/2007 10564 10629 10871 11/30/2007 10592 10660 10909 12/3/2007 10546 10614 10859 12/4/2007 10513 10579 10814 12/5/2007 10577 10644 10924 12/6/2007 10824 10892 11195 12/7/2007 10821 10890 11171 12/10/2007 10900 10969 11245 12/11/2007 10625 10694 10933 12/12/2007 10714 10784 10999 12/13/2007 10712 10780 10955 12/14/2007 10508 10576 10745 12/17/2007 10335 10401 10546 12/18/2007 10506 10572 10698 12/19/2007 10524 10590 10717 12/20/2007 10613 10681 10845 12/21/2007 10692 10762 11062 12/24/2007 10758 10809 11166 12/25/2007 10758 10809 11166 12/26/2007 10816 10874 11193 12/27/2007 10539 10594 10934 12/28/2007 10521 10575 10949 12/31/2007 10419 10472 10855 1/1/2008 10419 10472 10855 1/2/2008 10297 10350 10752 1/3/2008 10147 10198 10686 1/4/2008 9801 9851 10347 1/7/2008 9821 9872 10361 1/8/2008 9605 9655 10133 1/9/2008 9674 9724 10233 1/10/2008 9757 9808 10291 1/11/2008 9597 9646 10098 1/14/2008 9737 9787 10233 1/15/2008 9534 9582 10045 1/16/2008 9602 9653 10051 1/17/2008 9394 9441 9798 1/18/2008 9297 9345 9737 1/21/2008 9297 9345 9737 1/22/2008 9325 9371 9691 1/23/2008 9602 9652 9900 1/24/2008 9635 9686 9958 1/25/2008 9544 9595 9878 1/28/2008 9724 9777 10045 1/29/2008 9826 9879 10097 1/30/2008 9702 9754 9968 1/31/2008 9946 10001 10197 2/1/2008 10195 10254 10446 2/4/2008 10078 10136 10324 2/5/2008 9796 9850 10041 2/6/2008 9628 9679 9913 2/7/2008 9735 9788 10042 2/8/2008 9694 9748 10044 2/11/2008 9684 9736 10095 2/12/2008 9750 9803 10153 2/13/2008 9976 10033 10355 2/14/2008 9747 9802 10154 2/15/2008 9686 9739 10100 2/18/2008 9686 9739 10100 2/19/2008 9684 9738 10125 2/20/2008 9760 9814 10213 2/21/2008 9574 9627 10062 2/22/2008 9539 9591 10052 2/25/2008 9702 9757 10249 2/26/2008 9819 9871 10350 2/27/2008 9834 9887 10325 2/28/2008 9681 9730 10231 2/29/2008 9414 9490 9963 3/3/2008 9391 9428 9955 3/4/2008 9368 9405 9904 3/5/2008 9411 9451 9952 3/6/2008 9177 9208 9733 3/7/2008 9119 9149 9647 3/10/2008 8928 8952 9426 3/11/2008 9233 9267 9735 3/12/2008 9170 9200 9655 3/13/2008 9348 9383 9833 3/14/2008 9144 9174 9623 3/17/2008 8946 8976 9408 3/18/2008 9315 9345 9833 3/19/2008 9106 9137 9569 3/20/2008 9319 9352 9779 3/21/2008 9319 9352 9779 3/24/2008 9645 9681 10069 3/25/2008 9708 9744 10133 3/26/2008 9678 9712 10119 3/27/2008 9530 9563 9972 3/28/2008 9400 9433 9879 3/31/2008 9449 9482 9932 4/1/2008 9766 9802 10216 4/2/2008 9817 9853 10257 4/3/2008 9860 9895 10286 4/4/2008 9840 9876 10295 4/7/2008 9822 9859 10265 4/8/2008 9830 9866 10271 4/9/2008 9658 9694 10119 4/10/2008 9748 9783 10210 4/11/2008 9508 9542 9961 4/14/2008 9467 9503 9945 4/15/2008 9497 9534 9991 4/16/2008 9748 9785 10265 4/17/2008 9656 9693 10186 4/18/2008 9855 9893 10391 4/21/2008 9791 9829 10336 4/22/2008 9625 9660 10171 4/23/2008 9699 9736 10235 4/24/2008 9801 9840 10360 4/25/2008 9873 9911 10505 4/28/2008 9939 9978 10556 4/29/2008 9855 9892 10466 4/30/2008 9822 9860 10465 5/1/2008 9968 10007 10583 5/2/2008 9893 9933 10547 5/5/2008 9845 9884 10523 5/6/2008 9876 9915 10581 5/7/2008 9740 9779 10448 5/8/2008 9745 9784 10488 5/9/2008 9755 9795 10481 5/12/2008 9914 9954 10623 5/13/2008 9988 10027 10717 5/14/2008 10014 10055 10720 5/15/2008 10121 10161 10834 5/16/2008 10108 10149 10844 5/19/2008 10057 10099 10815 5/20/2008 9996 10037 10766 5/21/2008 9827 9868 10614 5/22/2008 9911 9952 10685 5/23/2008 9817 9857 10587 5/26/2008 9817 9857 10587 5/27/2008 10011 10052 10723 5/28/2008 10052 10095 10790 5/29/2008 10180 10222 10870 5/30/2008 10200 10244 10952 6/2/2008 10065 10108 10842 6/3/2008 10037 10079 10818 6/4/2008 10116 10159 10870 6/5/2008 10336 10381 11135 6/6/2008 10049 10092 10838 6/9/2008 9996 10036 10830 6/10/2008 9985 10028 10772 6/11/2008 9761 9801 10582 6/12/2008 9776 9816 10583 6/13/2008 9952 9994 10784 6/16/2008 10049 10093 10901 6/17/2008 10026 10070 10888 6/18/2008 9945 9987 10800 6/19/2008 10047 10091 10883 6/20/2008 9915 9956 10742 6/23/2008 9839 9873 10687 6/24/2008 9657 9691 10504 6/25/2008 9787 9822 10602 6/26/2008 9552 9583 10390 6/27/2008 9476 9506 10359 6/30/2008 9338 9366 10276 7/1/2008 9330 9360 10269 7/2/2008 9118 9144 9991 7/3/2008 9044 9071 9885 7/4/2008 9044 9071 9885 7/7/2008 8951 8979 9782 7/8/2008 9230 9257 10036 7/9/2008 9031 9058 9847 7/10/2008 9018 9046 9906 7/11/2008 9036 9063 9929 7/14/2008 9018 9045 9854 7/15/2008 9005 9032 9798 7/16/2008 9320 9349 10075 7/17/2008 9448 9478 10159 7/18/2008 9422 9452 10148 7/21/2008 9481 9512 10199 7/22/2008 9759 9791 10413 7/23/2008 9762 9794 10420 7/24/2008 9506 9539 10192 7/25/2008 9557 9591 10266 7/28/2008 9348 9385 10109 7/29/2008 9624 9660 10326 7/30/2008 9678 9718 10410 7/31/2008 9647 9686 10349 8/1/2008 9639 9677 10356 8/4/2008 9491 9531 10198 8/5/2008 9747 9789 10479 8/6/2008 9826 9866 10563 8/7/2008 9749 9791 10460 8/8/2008 10007 10047 10715 8/11/2008 10281 10325 10928 8/12/2008 10181 10224 10845 8/13/2008 10194 10238 10873 8/14/2008 10273 10318 10946 8/15/2008 10291 10335 10953 8/18/2008 10163 10209 10794 8/19/2008 9990 10035 10641 8/20/2008 10007 10053 10659 8/21/2008 9946 9991 10603 8/22/2008 10089 10134 10746 8/25/2008 9839 9882 10519 8/26/2008 9877 9922 10566 8/27/2008 9995 10039 10691 8/28/2008 10174 10221 10843 8/29/2008 10048 10094 10730 9/1/2008 10048 10094 10730 9/2/2008 10107 10152 10707 9/3/2008 10138 10185 10699 9/4/2008 9864 9908 10401 9/5/2008 9877 9923 10404 9/8/2008 10089 10136 10565 9/9/2008 9813 9858 10233 9/10/2008 9926 9971 10382 9/11/2008 9974 10020 10422 9/12/2008 9895 9941 10408 9/15/2008 9609 9654 10048 9/16/2008 9805 9852 10301 9/17/2008 9476 9523 9930 9/18/2008 10079 10128 10453 9/19/2008 10412 10459 10785 9/22/2008 10001 10049 10414 9/23/2008 9855 9903 10263 9/24/2008 9709 9755 10085 9/25/2008 9811 9857 10186 9/26/2008 9847 9894 10186 9/29/2008 9323 9367 9613 9/30/2008 9443 9489 9823 10/1/2008 9377 9421 9728 10/2/2008 8942 8983 9212 10/3/2008 8681 8719 8985 10/6/2008 8336 8372 8671 10/7/2008 7932 7965 8221 10/8/2008 7788 7820 8073 10/9/2008 7210 7239 7469 10/10/2008 7410 7440 7700 10/13/2008 7962 7996 8346 10/14/2008 7760 7791 8151 10/15/2008 7054 7079 7379 10/16/2008 7418 7447 7780 10/17/2008 7310 7339 7676 10/20/2008 7589 7621 7991 10/21/2008 7377 7407 7766 10/22/2008 6998 7025 7331 10/23/2008 6793 6820 7124 10/24/2008 6538 6563 6868 10/27/2008 6259 6283 6573 10/28/2008 6663 6690 7006 10/29/2008 6839 6869 7190 10/30/2008 7141 7172 7482 10/31/2008 7425 7459 7781
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (03/01/06) -------- --------------- RYDEX S&P SMALLCAP 600 PURE GROWTH ETF............................ -35.05% -10.55% S&P SMALLCAP 600/CITIGROUP PURE GROWTH TOTAL RETURN INDEX......... -35.14% -10.40% S&P SMALLCAP 600 GROWTH TOTAL RETURN INDEX........................ -34.26% -8.97%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 15 ANNUAL REPORT Rydex S&P SmallCap 600 Pure Growth ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ LHC GROUP, INC. 2.64% PETMED EXPRESS, INC. 2.29% GREENHILL & CO., INC. 2.11% QUALITY SYSTEMS, INC. 1.67% MARTEK BIOSCIENCES CORP. 1.67% WILSHIRE BANCORP, INC. 1.63% WEBSENSE, INC. 1.56% PANERA BREAD CO. -- CLASS A 1.54% CATALYST HEALTH SOLUTIONS, INC. 1.42% J2 GLOBAL COMMUNICATIONS, INC. 1.38% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Consumer Discretionary 27.33 Information Technology 21.91 Health Care 18.13 Financials 11.90 Industrials 8.22 Energy 5.47 Materials 3.65 Consumer Staples 3.39
* 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. 16 RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the one-year period ended October 31, 2008, Rydex S&P Equal Weight Consumer Discretionary ETF returned -43.27% compared to its benchmark S&P Equal Weight Consumer Discretionary Total Return Index and the capitalization-weighted S&P Consumer Discretionary Index, which returned -43.13% and -37.33% respectively for the same time period. Both the equal-weight and cap-weight consumer discretionary indices benefited from exposure to diversified consumer services. At the same time, the media industry was the largest detractor of returns for the two indices. The S&P Equal Weight Consumer Discretionary Index's greater exposure to the specialty retail, hotels/restaurants and leisure industries, likewise, contributed significantly to its underperformance. Known for names such as Home Depot (HD), Lowe's (LOW), Office Depot (ODP) and Autonation (AN), the retailing industry was hit hard by the credit crisis, losing more than 20%. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT S&P 500 CONSUMER DISCRETIONARY CONSUMER DISCRETIONARY TOTAL RETURN TOTAL RETURN ETF(A) INDEX(B) INDEX(C) ---------------------- ------------ ---------------------- 11/1/2006 10000 10000 10001 11/2/2006 9980 9999 9979 11/3/2006 9913 9978 9912 11/4/2006 9913 9978 9912 11/5/2006 9913 9978 9912 11/6/2006 10056 10091 10055 11/7/2006 10069 10114 10069 11/8/2006 10120 10137 10122 11/9/2006 10076 10085 10075 11/10/2006 10165 10104 10165 11/11/2006 10165 10104 10165 11/12/2006 10165 10104 10165 11/13/2006 10173 10132 10174 11/14/2006 10298 10198 10299 11/15/2006 10358 10225 10360 11/16/2006 10434 10249 10436 11/17/2006 10387 10259 10389 11/18/2006 10387 10259 10389 11/19/2006 10387 10259 10389 11/20/2006 10342 10254 10343 11/21/2006 10389 10272 10390 11/22/2006 10445 10297 10445 11/23/2006 10445 10297 10445 11/24/2006 10398 10260 10398 11/25/2006 10398 10260 10398 11/26/2006 10398 10260 10398 11/27/2006 10225 10120 10225 11/28/2006 10211 10158 10212 11/29/2006 10302 10256 10303 11/30/2006 10313 10264 10314 12/1/2006 10267 10236 10267 12/2/2006 10267 10236 10267 12/3/2006 10267 10236 10267 12/4/2006 10405 10327 10405 12/5/2006 10469 10368 10471 12/6/2006 10465 10357 10466 12/7/2006 10394 10317 10395 12/8/2006 10398 10336 10400 12/9/2006 10398 10336 10400 12/10/2006 10398 10336 10400 12/11/2006 10425 10359 10428 12/12/2006 10373 10349 10375 12/13/2006 10422 10363 10425 12/14/2006 10525 10453 10529 12/15/2006 10478 10465 10481 12/16/2006 10478 10465 10481 12/17/2006 10478 10465 10481 12/18/2006 10438 10431 10441 12/19/2006 10414 10454 10417 12/20/2006 10438 10440 10442 12/21/2006 10389 10404 10393 12/22/2006 10389 10350 10395 12/23/2006 10389 10350 10395 12/24/2006 10389 10350 10395 12/25/2006 10389 10350 10395 12/26/2006 10407 10395 10412 12/27/2006 10495 10470 10500 12/28/2006 10469 10455 10474 12/29/2006 10431 10408 10436 12/30/2006 10431 10408 10436 12/31/2006 10431 10408 10436 1/1/2007 10431 10408 10436 1/2/2007 10431 10408 10436 1/3/2007 10449 10398 10455 1/4/2007 10451 10411 10458 1/5/2007 10375 10347 10381 1/6/2007 10375 10347 10381 1/7/2007 10375 10347 10381 1/8/2007 10400 10373 10407 1/9/2007 10469 10368 10477 1/10/2007 10509 10389 10517 1/11/2007 10638 10455 10646 1/12/2007 10660 10506 10669 1/13/2007 10660 10506 10669 1/14/2007 10660 10506 10669 1/15/2007 10660 10506 10669 1/16/2007 10676 10515 10686 1/17/2007 10680 10506 10690 1/18/2007 10720 10475 10731 1/19/2007 10758 10506 10768 1/20/2007 10758 10506 10768 1/21/2007 10758 10506 10768 1/22/2007 10702 10451 10712 1/23/2007 10725 10488 10735 1/24/2007 10780 10577 10792 1/25/2007 10633 10458 10645 1/26/2007 10602 10445 10613 1/27/2007 10602 10445 10613 1/28/2007 10602 10445 10613 1/29/2007 10622 10435 10633 1/30/2007 10642 10495 10654 1/31/2007 10767 10566 10780 2/1/2007 10867 10625 10879 2/2/2007 10898 10643 10910 2/3/2007 10898 10643 10910 2/4/2007 10898 10643 10910 2/5/2007 10872 10634 10884 2/6/2007 10918 10641 10931 2/7/2007 10965 10660 10978 2/8/2007 10974 10648 10988 2/9/2007 10872 10573 10885 2/10/2007 10872 10573 10885 2/11/2007 10872 10573 10885 2/12/2007 10820 10539 10835 2/13/2007 10903 10621 10916 2/14/2007 10974 10705 10989 2/15/2007 11016 10717 11030 2/16/2007 10996 10708 11011 2/17/2007 10996 10708 11011 2/18/2007 10996 10708 11011 2/19/2007 10996 10708 11011 2/20/2007 11083 10739 11098 2/21/2007 11050 10724 11065 2/22/2007 11019 10717 11034 2/23/2007 10981 10680 10996 2/24/2007 10981 10680 10996 2/25/2007 10981 10680 10996 2/26/2007 10918 10668 10933 2/27/2007 10560 10299 10574 2/28/2007 10593 10359 10609 3/1/2007 10558 10332 10572 3/2/2007 10455 10215 10470 3/3/2007 10455 10215 10470 3/4/2007 10455 10215 10470 3/5/2007 10310 10119 10324 3/6/2007 10462 10276 10478 3/7/2007 10471 10254 10486 3/8/2007 10566 10327 10583 3/9/2007 10584 10334 10600 3/10/2007 10584 10334 10600 3/11/2007 10584 10334 10600 3/12/2007 10611 10362 10628 3/13/2007 10395 10154 10411 3/14/2007 10395 10223 10411 3/15/2007 10457 10261 10474 3/16/2007 10404 10222 10421 3/17/2007 10404 10222 10421 3/18/2007 10404 10222 10421 3/19/2007 10511 10333 10530 3/20/2007 10589 10399 10606 3/21/2007 10747 10577 10767 3/22/2007 10725 10573 10743 3/23/2007 10752 10584 10772 3/24/2007 10752 10584 10772 3/25/2007 10752 10584 10772 3/26/2007 10723 10595 10741 3/27/2007 10645 10529 10664 3/28/2007 10544 10448 10565 3/29/2007 10556 10487 10575 3/30/2007 10567 10475 10587 3/31/2007 10567 10475 10587 4/1/2007 10567 10475 10587 4/2/2007 10616 10502 10636 4/3/2007 10725 10602 10745 4/4/2007 10716 10614 10736 4/5/2007 10765 10649 10786 4/6/2007 10765 10649 10786 4/7/2007 10765 10649 10786 4/8/2007 10765 10649 10786 4/9/2007 10783 10655 10805 4/10/2007 10783 10684 10806 4/11/2007 10712 10615 10734 4/12/2007 10781 10681 10803 4/13/2007 10765 10718 10788 4/14/2007 10765 10718 10788 4/15/2007 10765 10718 10788 4/16/2007 10895 10833 10917 4/17/2007 10935 10855 10958 4/18/2007 10941 10863 10965 4/19/2007 10892 10850 10915 4/20/2007 11004 10951 11028 4/21/2007 11004 10951 11028 4/22/2007 11004 10951 11028 4/23/2007 10977 10926 11002 4/24/2007 10979 10922 11004 4/25/2007 11082 11034 11107 4/26/2007 11151 11026 11177 4/27/2007 11104 11025 11129 4/28/2007 11104 11025 11129 4/29/2007 11104 11025 11129 4/30/2007 10953 10939 10977 5/1/2007 11024 10968 11049 5/2/2007 11118 11040 11145 5/3/2007 11089 11091 11115 5/4/2007 11100 11115 11125 5/5/2007 11100 11115 11125 5/6/2007 11100 11115 11125 5/7/2007 11100 11144 11126 5/8/2007 11084 11132 11110 5/9/2007 11156 11171 11183 5/10/2007 11004 11017 11031 5/11/2007 11055 11124 11083 5/12/2007 11055 11124 11083 5/13/2007 11055 11124 11083 5/14/2007 11031 11105 11059 5/15/2007 10975 11091 11002 5/16/2007 11035 11190 11062 5/17/2007 11049 11181 11078 5/18/2007 11160 11255 11188 5/19/2007 11160 11255 11188 5/20/2007 11160 11255 11188 5/21/2007 11205 11272 11234 5/22/2007 11236 11265 11266 5/23/2007 11223 11252 11252 5/24/2007 11136 11144 11164 5/25/2007 11160 11205 11189 5/26/2007 11160 11205 11189 5/27/2007 11160 11205 11189 5/28/2007 11160 11205 11189 5/29/2007 11173 11224 11204 5/30/2007 11269 11318 11299 5/31/2007 11292 11321 11323 6/1/2007 11379 11363 11411 6/2/2007 11379 11363 11411 6/3/2007 11379 11363 11411 6/4/2007 11417 11384 11450 6/5/2007 11345 11324 11378 6/6/2007 11223 11226 11255 6/7/2007 11013 11030 11044 6/8/2007 11147 11155 11178 6/9/2007 11147 11155 11178 6/10/2007 11147 11155 11178 6/11/2007 11120 11166 11150 6/12/2007 10991 11047 11020 6/13/2007 11127 11217 11158 6/14/2007 11160 11272 11191 6/15/2007 11213 11345 11245 6/16/2007 11213 11345 11245 6/17/2007 11213 11345 11245 6/18/2007 11189 11332 11222 6/19/2007 11180 11352 11214 6/20/2007 11091 11197 11127 6/21/2007 11097 11269 11135 6/22/2007 11006 11124 11044 6/23/2007 11006 11124 11044 6/24/2007 11006 11124 11044 6/25/2007 10959 11088 10997 6/26/2007 10901 11053 10938 6/27/2007 11015 11154 11051 6/28/2007 11026 11150 11064 6/29/2007 10997 11133 11035 6/30/2007 10997 11133 11035 7/1/2007 10997 11133 11035 7/2/2007 11077 11252 11115 7/3/2007 11084 11294 11123 7/4/2007 11084 11294 11123 7/5/2007 11153 11298 11193 7/6/2007 11252 11339 11291 7/7/2007 11252 11339 11291 7/8/2007 11252 11339 11291 7/9/2007 11202 11349 11242 7/10/2007 10968 11188 11008 7/11/2007 11001 11254 11040 7/12/2007 11153 11468 11195 7/13/2007 11189 11504 11230 7/14/2007 11189 11504 11230 7/15/2007 11189 11504 11230 7/16/2007 11129 11482 11169 7/17/2007 11100 11481 11142 7/18/2007 11055 11458 11097 7/19/2007 11124 11510 11166 7/20/2007 10948 11369 10990 7/21/2007 10948 11369 10990 7/22/2007 10948 11369 10990 7/23/2007 10923 11425 10963 7/24/2007 10704 11199 10744 7/25/2007 10691 11251 10730 7/26/2007 10376 10988 10414 7/27/2007 10213 10814 10251 7/28/2007 10213 10814 10251 7/29/2007 10213 10814 10251 7/30/2007 10316 10925 10355 7/31/2007 10202 10787 10240 8/1/2007 10197 10866 10235 8/2/2007 10291 10916 10331 8/3/2007 9978 10627 10017 8/4/2007 9978 10627 10017 8/5/2007 9978 10627 10017 8/6/2007 10137 10884 10175 8/7/2007 10193 10951 10232 8/8/2007 10300 11109 10340 8/9/2007 10007 10781 10048 8/10/2007 10030 10786 10070 8/11/2007 10030 10786 10070 8/12/2007 10030 10786 10070 8/13/2007 10050 10782 10089 8/14/2007 9777 10587 9816 8/15/2007 9612 10443 9650 8/16/2007 9619 10477 9656 8/17/2007 9804 10735 9843 8/18/2007 9804 10735 9843 8/19/2007 9804 10735 9843 8/20/2007 9844 10732 9885 8/21/2007 9900 10744 9940 8/22/2007 10027 10870 10067 8/23/2007 9985 10858 10025 8/24/2007 10121 10985 10163 8/25/2007 10121 10985 10163 8/26/2007 10121 10985 10163 8/27/2007 9989 10892 10029 8/28/2007 9730 10636 9769 8/29/2007 9983 10872 10025 8/30/2007 9934 10827 9974 8/31/2007 10081 10949 10123 9/1/2007 10081 10949 10123 9/2/2007 10081 10949 10123 9/3/2007 10081 10949 10123 9/4/2007 10108 11064 10151 9/5/2007 9969 10942 10011 9/6/2007 9972 10990 10015 9/7/2007 9744 10804 9784 9/8/2007 9744 10804 9784 9/9/2007 9744 10804 9784 9/10/2007 9639 10791 9679 9/11/2007 9748 10938 9790 9/12/2007 9717 10942 9758 9/13/2007 9831 11034 9874 9/14/2007 9891 11037 9935 9/15/2007 9891 11037 9935 9/16/2007 9891 11037 9935 9/17/2007 9829 10980 9871 9/18/2007 10188 11301 10234 9/19/2007 10249 11370 10296 9/20/2007 10065 11296 10111 9/21/2007 10047 11348 10091 9/22/2007 10047 11348 10091 9/23/2007 10047 11348 10091 9/24/2007 9944 11289 9992 9/25/2007 9826 11285 9875 9/26/2007 9902 11348 9952 9/27/2007 9922 11393 9971 9/28/2007 9929 11359 9979 9/29/2007 9929 11359 9979 9/30/2007 9929 11359 9979 10/1/2007 10070 11510 10119 10/2/2007 10164 11507 10210 10/3/2007 10215 11457 10259 10/4/2007 10128 11481 10174 10/5/2007 10320 11594 10366 10/6/2007 10320 11594 10366 10/7/2007 10320 11594 10366 10/8/2007 10260 11557 10308 10/9/2007 10260 11650 10310 10/10/2007 10276 11631 10326 10/11/2007 10195 11572 10245 10/12/2007 10188 11627 10241 10/13/2007 10188 11627 10241 10/14/2007 10188 11627 10241 10/15/2007 10027 11530 10079 10/16/2007 9949 11454 10004 10/17/2007 9931 11475 9986 10/18/2007 9859 11467 9929 10/19/2007 9618 11173 9692 10/20/2007 9618 11173 9692 10/21/2007 9618 11173 9692 10/22/2007 9761 11216 9819 10/23/2007 9776 11315 9842 10/24/2007 9770 11287 9835 10/25/2007 9745 11276 9809 10/26/2007 9857 11432 9922 10/27/2007 9857 11432 9922 10/28/2007 9857 11432 9922 10/29/2007 9900 11476 9965 10/30/2007 9906 11402 9971 10/31/2007 9960 11539 10027 11/1/2007 9658 11237 9723 11/2/2007 9609 11247 9674 11/3/2007 9609 11247 9674 11/4/2007 9609 11247 9674 11/5/2007 9481 11192 9545 11/6/2007 9528 11327 9594 11/7/2007 9300 11000 9364 11/8/2007 9309 10994 9375 11/9/2007 9152 10837 9213 11/10/2007 9152 10837 9213 11/11/2007 9152 10837 9213 11/12/2007 9163 10729 9224 11/13/2007 9454 11045 9515 11/14/2007 9273 10970 9333 11/15/2007 9170 10825 9232 11/16/2007 9143 10882 9206 11/17/2007 9143 10882 9206 11/18/2007 9143 10882 9206 11/19/2007 8890 10692 8951 11/20/2007 8872 10741 8934 11/21/2007 8783 10571 8842 11/22/2007 8783 10571 8842 11/23/2007 8957 10750 9019 11/24/2007 8957 10750 9019 11/25/2007 8957 10750 9019 11/26/2007 8740 10500 8800 11/27/2007 8834 10658 8894 11/28/2007 9116 10966 9181 11/29/2007 9078 10972 9142 11/30/2007 9206 11057 9271 12/1/2007 9206 11057 9271 12/2/2007 9206 11057 9271 12/3/2007 9141 10992 9205 12/4/2007 9109 10920 9173 12/5/2007 9174 11092 9241 12/6/2007 9344 11260 9412 12/7/2007 9376 11240 9445 12/8/2007 9376 11240 9445 12/9/2007 9376 11240 9445 12/10/2007 9418 11325 9489 12/11/2007 9069 11039 9133 12/12/2007 9076 11107 9142 12/13/2007 9040 11121 9105 12/14/2007 8857 10969 8919 12/15/2007 8857 10969 8919 12/16/2007 8857 10969 8919 12/17/2007 8792 10804 8852 12/18/2007 8861 10872 8923 12/19/2007 8792 10857 8852 12/20/2007 8801 10914 8863 12/21/2007 8877 11097 8941 12/22/2007 8877 11097 8941 12/23/2007 8877 11097 8941 12/24/2007 8980 11187 9048 12/25/2007 8980 11187 9048 12/26/2007 8904 11196 8971 12/27/2007 8780 11040 8843 12/28/2007 8745 11056 8805 12/29/2007 8745 11056 8805 12/30/2007 8745 11056 8805 12/31/2007 8749 10980 8810 1/1/2008 8749 10980 8810 1/2/2008 8551 10824 8606 1/3/2008 8385 10824 8435 1/4/2008 8088 10558 8129 1/5/2008 8088 10558 8129 1/6/2008 8088 10558 8129 1/7/2008 8121 10592 8164 1/8/2008 7928 10401 7966 1/9/2008 7979 10544 8019 1/10/2008 8092 10628 8133 1/11/2008 7898 10484 7936 1/12/2008 7898 10484 7936 1/13/2008 7898 10484 7936 1/14/2008 7932 10598 7971 1/15/2008 7716 10334 7749 1/16/2008 7858 10277 7896 1/17/2008 7736 9979 7772 1/18/2008 7763 9918 7799 1/19/2008 7763 9918 7799 1/20/2008 7763 9918 7799 1/21/2008 7763 9918 7799 1/22/2008 7973 9809 8013 1/23/2008 8416 10019 8465 1/24/2008 8436 10120 8488 1/25/2008 8272 9960 8319 1/26/2008 8272 9960 8319 1/27/2008 8272 9960 8319 1/28/2008 8524 10135 8576 1/29/2008 8625 10198 8680 1/30/2008 8531 10150 8584 1/31/2008 8875 10322 8939 2/1/2008 9015 10448 9085 2/2/2008 9015 10448 9085 2/3/2008 9015 10448 9085 2/4/2008 8763 10339 8824 2/5/2008 8499 10009 8548 2/6/2008 8396 9937 8441 2/7/2008 8576 10017 8630 2/8/2008 8484 9975 8535 2/9/2008 8484 9975 8535 2/10/2008 8484 9975 8535 2/11/2008 8634 10035 8692 2/12/2008 8655 10108 8711 2/13/2008 8747 10249 8809 2/14/2008 8551 10112 8605 2/15/2008 8542 10121 8596 2/16/2008 8542 10121 8596 2/17/2008 8542 10121 8596 2/18/2008 8542 10121 8596 2/19/2008 8477 10113 8528 2/20/2008 8623 10198 8679 2/21/2008 8454 10070 8505 2/22/2008 8540 10151 8594 2/23/2008 8540 10151 8594 2/24/2008 8540 10151 8594 2/25/2008 8677 10291 8738 2/26/2008 8853 10362 8918 2/27/2008 8835 10355 8899 2/28/2008 8583 10264 8639 2/29/2008 8297 9986 8341 3/1/2008 8297 9986 8341 3/2/2008 8297 9986 8341 3/3/2008 8283 9992 8327 3/4/2008 8315 9957 8360 3/5/2008 8337 10015 8383 3/6/2008 8067 9796 8100 3/7/2008 7995 9713 8026 3/8/2008 7995 9713 8026 3/9/2008 7995 9713 8026 3/10/2008 7862 9564 7887 3/11/2008 8164 9919 8201 3/12/2008 8085 9833 8120 3/13/2008 8146 9883 8184 3/14/2008 8002 9678 8033 3/15/2008 8002 9678 8033 3/16/2008 8002 9678 8033 3/17/2008 7853 9593 7885 3/18/2008 8225 10000 8258 3/19/2008 8139 9757 8172 3/20/2008 8495 9991 8528 3/21/2008 8495 9991 8528 3/22/2008 8495 9991 8528 3/23/2008 8495 9991 8528 3/24/2008 8785 10144 8822 3/25/2008 8742 10167 8778 3/26/2008 8531 10079 8568 3/27/2008 8407 9965 8443 3/28/2008 8182 9887 8218 3/29/2008 8182 9887 8218 3/30/2008 8182 9887 8218 3/31/2008 8299 9943 8335 4/1/2008 8703 10300 8741 4/2/2008 8760 10282 8798 4/3/2008 8748 10296 8786 4/4/2008 8710 10304 8749 4/5/2008 8710 10304 8749 4/6/2008 8710 10304 8749 4/7/2008 8672 10320 8710 4/8/2008 8579 10271 8618 4/9/2008 8374 10189 8412 4/10/2008 8457 10235 8495 4/11/2008 8290 10027 8327 4/12/2008 8290 10027 8327 4/13/2008 8290 10027 8327 4/14/2008 8236 9993 8275 4/15/2008 8261 10039 8298 4/16/2008 8414 10268 8454 4/17/2008 8457 10275 8498 4/18/2008 8633 10461 8674 4/19/2008 8633 10461 8674 4/20/2008 8633 10461 8674 4/21/2008 8606 10445 8649 4/22/2008 8421 10353 8462 4/23/2008 8448 10383 8491 4/24/2008 8615 10450 8656 4/25/2008 8733 10518 8775 4/26/2008 8733 10518 8775 4/27/2008 8733 10518 8775 4/28/2008 8733 10508 8774 4/29/2008 8776 10467 8819 4/30/2008 8649 10427 8690 5/1/2008 8920 10608 8965 5/2/2008 8907 10642 8950 5/3/2008 8907 10642 8950 5/4/2008 8907 10642 8950 5/5/2008 8785 10595 8829 5/6/2008 8850 10677 8893 5/7/2008 8692 10488 8735 5/8/2008 8636 10527 8683 5/9/2008 8620 10458 8667 5/10/2008 8620 10458 8667 5/11/2008 8620 10458 8667 5/12/2008 8807 10573 8855 5/13/2008 8830 10572 8878 5/14/2008 8943 10616 8992 5/15/2008 9083 10730 9133 5/16/2008 8981 10744 9030 5/17/2008 8981 10744 9030 5/18/2008 8981 10744 9030 5/19/2008 8927 10754 8978 5/20/2008 8776 10654 8825 5/21/2008 8550 10484 8599 5/22/2008 8563 10513 8614 5/23/2008 8410 10375 8460 5/24/2008 8410 10375 8460 5/25/2008 8410 10375 8460 5/26/2008 8410 10375 8460 5/27/2008 8500 10446 8551 5/28/2008 8572 10489 8624 5/29/2008 8667 10546 8720 5/30/2008 8636 10562 8688 5/31/2008 8636 10562 8688 6/1/2008 8636 10562 8688 6/2/2008 8511 10452 8563 6/3/2008 8520 10392 8572 6/4/2008 8534 10393 8585 6/5/2008 8633 10597 8686 6/6/2008 8263 10271 8314 6/7/2008 8263 10271 8314 6/8/2008 8263 10271 8314 6/9/2008 8222 10279 8273 6/10/2008 8254 10254 8304 6/11/2008 8015 10083 8064 6/12/2008 8098 10117 8148 6/13/2008 8295 10269 8346 6/14/2008 8295 10269 8346 6/15/2008 8295 10269 8346 6/16/2008 8328 10270 8380 6/17/2008 8218 10201 8268 6/18/2008 8051 10102 8099 6/19/2008 8177 10143 8228 6/20/2008 7931 9955 7977 6/21/2008 7931 9955 7977 6/22/2008 7931 9955 7977 6/23/2008 7780 9955 7826 6/24/2008 7787 9927 7833 6/25/2008 7906 9986 7955 6/26/2008 7631 9695 7673 6/27/2008 7561 9660 7604 6/28/2008 7561 9660 7604 6/29/2008 7561 9660 7604 6/30/2008 7455 9672 7497 7/1/2008 7448 9711 7489 7/2/2008 7303 9535 7343 7/3/2008 7330 9545 7371 7/4/2008 7330 9545 7371 7/5/2008 7330 9545 7371 7/6/2008 7330 9545 7371 7/7/2008 7275 9465 7317 7/8/2008 7471 9631 7514 7/9/2008 7221 9412 7263 7/10/2008 7057 9478 7098 7/11/2008 6939 9374 6980 7/12/2008 6939 9374 6980 7/13/2008 6939 9374 6980 7/14/2008 6871 9289 6910 7/15/2008 6887 9188 6927 7/16/2008 7235 9420 7276 7/17/2008 7491 9533 7537 7/18/2008 7459 9536 7505 7/19/2008 7459 9536 7505 7/20/2008 7459 9536 7505 7/21/2008 7389 9531 7433 7/22/2008 7614 9660 7660 7/23/2008 7818 9699 7866 7/24/2008 7511 9475 7557 7/25/2008 7471 9515 7516 7/26/2008 7471 9515 7516 7/27/2008 7471 9515 7516 7/28/2008 7287 9338 7329 7/29/2008 7573 9557 7618 7/30/2008 7577 9716 7624 7/31/2008 7532 9591 7578 8/1/2008 7496 9537 7542 8/2/2008 7496 9537 7542 8/3/2008 7496 9537 7542 8/4/2008 7509 9452 7556 8/5/2008 7877 9724 7925 8/6/2008 7850 9761 7898 8/7/2008 7684 9587 7731 8/8/2008 8063 9816 8115 8/9/2008 8063 9816 8115 8/10/2008 8063 9816 8115 8/11/2008 8283 9887 8337 8/12/2008 8133 9768 8185 8/13/2008 7984 9743 8034 8/14/2008 8179 9797 8230 8/15/2008 8261 9838 8314 8/16/2008 8261 9838 8314 8/17/2008 8261 9838 8314 8/18/2008 8081 9690 8132 8/19/2008 7866 9601 7917 8/20/2008 7829 9661 7879 8/21/2008 7872 9686 7924 8/22/2008 8063 9797 8116 8/23/2008 8063 9797 8116 8/24/2008 8063 9797 8116 8/25/2008 7861 9604 7912 8/26/2008 7834 9640 7884 8/27/2008 7906 9718 7959 8/28/2008 8124 9864 8177 8/29/2008 8081 9729 8134 8/30/2008 8081 9729 8134 8/31/2008 8081 9729 8134 9/1/2008 8081 9729 8134 9/2/2008 8220 9690 8276 9/3/2008 8315 9675 8373 9/4/2008 8045 9386 8099 9/5/2008 8106 9428 8161 9/6/2008 8106 9428 8161 9/7/2008 8106 9428 8161 9/8/2008 8465 9623 8523 9/9/2008 8215 9294 8271 9/10/2008 8238 9352 8294 9/11/2008 8358 9484 8415 9/12/2008 8286 9504 8342 9/13/2008 8286 9504 8342 9/14/2008 8286 9504 8342 9/15/2008 8006 9056 8061 9/16/2008 8097 9215 8152 9/17/2008 7664 8781 7714 9/18/2008 8052 9164 8107 9/19/2008 8219 9533 8277 9/20/2008 8219 9533 8277 9/21/2008 8219 9533 8277 9/22/2008 7767 9169 7827 9/23/2008 7631 9026 7693 9/24/2008 7624 9008 7682 9/25/2008 7765 9185 7824 9/26/2008 7810 9216 7872 9/27/2008 7810 9216 7872 9/28/2008 7810 9216 7872 9/29/2008 7249 8407 7306 9/30/2008 7479 8862 7538 10/1/2008 7451 8824 7508 10/2/2008 7092 8469 7146 10/3/2008 6841 8355 6896 10/4/2008 6841 8355 6896 10/5/2008 6841 8355 6896 10/6/2008 6636 8034 6692 10/7/2008 6219 7573 6271 10/8/2008 6142 7491 6190 10/9/2008 5604 6920 5648 10/10/2008 5609 6840 5653 10/11/2008 5609 6840 5653 10/12/2008 5609 6840 5653 10/13/2008 6058 7632 6106 10/14/2008 5880 7591 5927 10/15/2008 5315 6906 5357 10/16/2008 5538 7200 5584 10/17/2008 5532 7155 5577 10/18/2008 5532 7155 5577 10/19/2008 5532 7155 5577 10/20/2008 5680 7496 5725 10/21/2008 5507 7265 5551 10/22/2008 5158 6824 5199 10/23/2008 5031 6910 5071 10/24/2008 4828 6672 4866 10/25/2008 4828 6672 4866 10/26/2008 4828 6672 4866 10/27/2008 4680 6460 4718 10/28/2008 5226 7157 5271 10/29/2008 5302 7078 5347 10/30/2008 5463 7262 5512 10/31/2008 5652 7374 5702
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF................. -43.27% -24.83% S&P 500 EQUAL WEIGHT CONSUMER DISCRETIONARY TOTAL RETURN INDEX.... -43.13% -24.51% S&P 500 TOTAL RETURN INDEX........................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 17 ANNUAL REPORT Rydex S&P Equal Weight Consumer Discretionary ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ APOLLO GROUP, INC. -- CLASS A 2.03% AUTOZONE, INC. 1.74% GENUINE PARTS CO. 1.68% FAMILY DOLLAR STORES, INC. 1.66% SHERWIN-WILLIAMS CO. 1.64% LOWE'S COS., INC. 1.60% MCDONALD'S CORP. 1.60% NIKE, INC. -- CLASS B 1.58% DIRECTV GROUP, INC. 1.55% HOME DEPOT, INC. 1.55% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Specialty Retail 21.23 Media 19.05 Household Durables 15.34 Hotels, Restaurants & Leisure 11.66 Multiline Retail 9.65 Textiles, Apparel & Luxury Goods 7.05 Leisure Equipment & Products 3.84 Diversified Consumer Services 3.49 Automobiles 2.69 Internet & Catalog Retail 2.40 Auto Components 1.92 Distributors 1.68
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 18 RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P Equal Weight Consumer Staples ETF returned -19.87%. For the same period, its benchmark, the S&P Equal Weight Consumer Staples Total Return Index, returned -19.76%. Consumer staples is a late-cycle sector and RHS underperformed the cap-weighted S&P Consumer Staples Index during three out of four quarters, twice by more than 4%. The effect of equal weighting was obvious in this ETF over the past year, with the food and staples retailing industry being the biggest contributors to its loss. On closer inspection, we see that the equal weight consumer staples index was significantly underweight in value to retail mega-giant Wal-Mart (WMT), which returned 25.62% for the period compared to its cap-weighted counterpart. On the other hand, the Equal Weight Index had higher allocations to popular grocery chains Whole Foods (WFMI) and SuperValue Inc. (SVU). As the nation's largest discount retailer chain, Wal-Mart has greatly benefited from consumers cutting household budgets, while top-line grocers like Whole Foods and SuperValue Inc. have felt the one-two punch of higher food prices and a drastic cutback in consumer spending. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT S&P 500 CONSUMER STAPLES CONSUMER STAPLES TOTAL RETURN TOTAL RETURN ETF(A) INDEX(B) INDEX(C) ---------------- ------------ ---------------- 11/1/2006 10000 10000 9999 11/2/2006 9981 9999 9981 11/3/2006 9846 9978 9845 11/4/2006 9846 9978 9845 11/5/2006 9846 9978 9845 11/6/2006 9927 10091 9927 11/7/2006 9911 10114 9911 11/8/2006 9975 10137 9975 11/9/2006 9940 10085 9939 11/10/2006 9950 10104 9950 11/11/2006 9950 10104 9950 11/12/2006 9950 10104 9950 11/13/2006 9936 10132 9937 11/14/2006 9979 10198 9981 11/15/2006 10010 10225 10010 11/16/2006 10064 10249 10064 11/17/2006 10056 10259 10057 11/18/2006 10056 10259 10057 11/19/2006 10056 10259 10057 11/20/2006 10035 10254 10036 11/21/2006 10027 10272 10027 11/22/2006 10056 10297 10058 11/23/2006 10056 10297 10058 11/24/2006 10031 10260 10032 11/25/2006 10031 10260 10032 11/26/2006 10031 10260 10032 11/27/2006 9913 10120 9915 11/28/2006 9956 10158 9958 11/29/2006 10042 10256 10044 11/30/2006 10029 10264 10032 12/1/2006 9994 10236 9996 12/2/2006 9994 10236 9996 12/3/2006 9994 10236 9996 12/4/2006 10139 10327 10142 12/5/2006 10203 10368 10207 12/6/2006 10195 10357 10200 12/7/2006 10160 10317 10164 12/8/2006 10183 10336 10187 12/9/2006 10183 10336 10187 12/10/2006 10183 10336 10187 12/11/2006 10193 10359 10197 12/12/2006 10228 10349 10233 12/13/2006 10212 10363 10216 12/14/2006 10262 10453 10266 12/15/2006 10251 10465 10256 12/16/2006 10251 10465 10256 12/17/2006 10251 10465 10256 12/18/2006 10233 10431 10239 12/19/2006 10247 10454 10254 12/20/2006 10226 10440 10233 12/21/2006 10243 10404 10249 12/22/2006 10233 10350 10239 12/23/2006 10233 10350 10239 12/24/2006 10233 10350 10239 12/25/2006 10233 10350 10239 12/26/2006 10257 10395 10265 12/27/2006 10290 10470 10298 12/28/2006 10282 10455 10290 12/29/2006 10230 10408 10238 12/30/2006 10230 10408 10238 12/31/2006 10230 10408 10238 1/1/2007 10230 10408 10238 1/2/2007 10230 10408 10238 1/3/2007 10234 10398 10242 1/4/2007 10209 10411 10217 1/5/2007 10145 10347 10152 1/6/2007 10145 10347 10152 1/7/2007 10145 10347 10152 1/8/2007 10166 10373 10174 1/9/2007 10176 10368 10185 1/10/2007 10209 10389 10218 1/11/2007 10278 10455 10288 1/12/2007 10259 10506 10268 1/13/2007 10259 10506 10268 1/14/2007 10259 10506 10268 1/15/2007 10259 10506 10268 1/16/2007 10270 10515 10279 1/17/2007 10249 10506 10260 1/18/2007 10259 10475 10269 1/19/2007 10278 10506 10289 1/20/2007 10278 10506 10289 1/21/2007 10278 10506 10289 1/22/2007 10297 10451 10308 1/23/2007 10309 10488 10320 1/24/2007 10343 10577 10355 1/25/2007 10291 10458 10301 1/26/2007 10280 10445 10292 1/27/2007 10280 10445 10292 1/28/2007 10280 10445 10292 1/29/2007 10307 10435 10318 1/30/2007 10341 10495 10352 1/31/2007 10416 10566 10428 2/1/2007 10509 10625 10521 2/2/2007 10503 10643 10516 2/3/2007 10503 10643 10516 2/4/2007 10503 10643 10516 2/5/2007 10468 10634 10482 2/6/2007 10482 10641 10496 2/7/2007 10441 10660 10454 2/8/2007 10430 10648 10443 2/9/2007 10411 10573 10426 2/10/2007 10411 10573 10426 2/11/2007 10411 10573 10426 2/12/2007 10409 10539 10423 2/13/2007 10486 10621 10502 2/14/2007 10532 10705 10546 2/15/2007 10609 10717 10625 2/16/2007 10630 10708 10646 2/17/2007 10630 10708 10646 2/18/2007 10630 10708 10646 2/19/2007 10630 10708 10646 2/20/2007 10693 10739 10709 2/21/2007 10638 10724 10655 2/22/2007 10613 10717 10629 2/23/2007 10576 10680 10593 2/24/2007 10576 10680 10593 2/25/2007 10576 10680 10593 2/26/2007 10588 10668 10605 2/27/2007 10293 10299 10308 2/28/2007 10359 10359 10375 3/1/2007 10295 10332 10310 3/2/2007 10186 10215 10203 3/3/2007 10186 10215 10203 3/4/2007 10186 10215 10203 3/5/2007 10159 10119 10174 3/6/2007 10253 10276 10269 3/7/2007 10197 10254 10213 3/8/2007 10288 10327 10306 3/9/2007 10313 10334 10330 3/10/2007 10313 10334 10330 3/11/2007 10313 10334 10330 3/12/2007 10357 10362 10376 3/13/2007 10199 10154 10217 3/14/2007 10249 10223 10266 3/15/2007 10328 10261 10347 3/16/2007 10294 10222 10314 3/17/2007 10294 10222 10314 3/18/2007 10294 10222 10314 3/19/2007 10359 10333 10378 3/20/2007 10440 10399 10461 3/21/2007 10561 10577 10583 3/22/2007 10582 10573 10603 3/23/2007 10615 10584 10637 3/24/2007 10615 10584 10637 3/25/2007 10615 10584 10637 3/26/2007 10625 10595 10649 3/27/2007 10548 10529 10571 3/28/2007 10540 10448 10562 3/29/2007 10551 10487 10574 3/30/2007 10592 10475 10615 3/31/2007 10592 10475 10615 4/1/2007 10592 10475 10615 4/2/2007 10621 10502 10643 4/3/2007 10690 10602 10710 4/4/2007 10707 10614 10727 4/5/2007 10732 10649 10753 4/6/2007 10732 10649 10753 4/7/2007 10732 10649 10753 4/8/2007 10732 10649 10753 4/9/2007 10743 10655 10765 4/10/2007 10759 10684 10781 4/11/2007 10699 10615 10720 4/12/2007 10749 10681 10770 4/13/2007 10770 10718 10793 4/14/2007 10770 10718 10793 4/15/2007 10770 10718 10793 4/16/2007 10841 10833 10864 4/17/2007 10870 10855 10894 4/18/2007 10853 10863 10877 4/19/2007 10891 10850 10914 4/20/2007 10979 10951 11002 4/21/2007 10979 10951 11002 4/22/2007 10979 10951 11002 4/23/2007 10993 10926 11018 4/24/2007 11012 10922 11037 4/25/2007 11060 11034 11085 4/26/2007 11029 11026 11054 4/27/2007 10987 11025 11013 4/28/2007 10987 11025 11013 4/29/2007 10987 11025 11013 4/30/2007 10951 10939 10976 5/1/2007 10949 10968 10975 5/2/2007 10987 11040 11012 5/3/2007 10954 11091 10979 5/4/2007 10951 11115 10978 5/5/2007 10951 11115 10978 5/6/2007 10951 11115 10978 5/7/2007 10977 11144 11003 5/8/2007 10954 11132 10980 5/9/2007 10954 11171 10981 5/10/2007 10807 11017 10834 5/11/2007 10832 11124 10859 5/12/2007 10832 11124 10859 5/13/2007 10832 11124 10859 5/14/2007 10830 11105 10857 5/15/2007 10847 11091 10874 5/16/2007 10962 11190 10990 5/17/2007 10939 11181 10966 5/18/2007 11000 11255 11028 5/19/2007 11000 11255 11028 5/20/2007 11000 11255 11028 5/21/2007 10956 11272 10984 5/22/2007 10958 11265 10986 5/23/2007 10947 11252 10977 5/24/2007 10903 11144 10932 5/25/2007 10960 11205 10991 5/26/2007 10960 11205 10991 5/27/2007 10960 11205 10991 5/28/2007 10960 11205 10991 5/29/2007 11006 11224 11036 5/30/2007 11048 11318 11078 5/31/2007 11052 11321 11083 6/1/2007 11140 11363 11171 6/2/2007 11140 11363 11171 6/3/2007 11140 11363 11171 6/4/2007 11096 11384 11126 6/5/2007 11023 11324 11055 6/6/2007 10935 11226 10966 6/7/2007 10795 11030 10825 6/8/2007 10874 11155 10907 6/9/2007 10874 11155 10907 6/10/2007 10874 11155 10907 6/11/2007 10903 11166 10936 6/12/2007 10801 11047 10834 6/13/2007 10943 11217 10975 6/14/2007 10933 11272 10964 6/15/2007 10971 11345 11004 6/16/2007 10971 11345 11004 6/17/2007 10971 11345 11004 6/18/2007 10971 11332 11005 6/19/2007 10911 11352 10959 6/20/2007 10808 11197 10882 6/21/2007 10894 11269 10970 6/22/2007 10765 11124 10838 6/23/2007 10765 11124 10838 6/24/2007 10765 11124 10838 6/25/2007 10746 11088 10820 6/26/2007 10710 11053 10784 6/27/2007 10806 11154 10882 6/28/2007 10827 11150 10904 6/29/2007 10838 11133 10913 6/30/2007 10838 11133 10913 7/1/2007 10838 11133 10913 7/2/2007 10909 11252 10987 7/3/2007 10905 11294 10984 7/4/2007 10905 11294 10984 7/5/2007 10888 11298 10967 7/6/2007 10914 11339 10993 7/7/2007 10914 11339 10993 7/8/2007 10914 11339 10993 7/9/2007 10916 11349 10995 7/10/2007 10815 11188 10891 7/11/2007 10876 11254 10954 7/12/2007 11015 11468 11094 7/13/2007 11057 11504 11138 7/14/2007 11057 11504 11138 7/15/2007 11057 11504 11138 7/16/2007 11015 11482 11096 7/17/2007 10954 11481 11034 7/18/2007 10962 11458 11042 7/19/2007 10996 11510 11078 7/20/2007 10888 11369 10969 7/21/2007 10888 11369 10969 7/22/2007 10888 11369 10969 7/23/2007 10943 11425 11025 7/24/2007 10777 11199 10856 7/25/2007 10783 11251 10864 7/26/2007 10585 10988 10662 7/27/2007 10467 10814 10545 7/28/2007 10467 10814 10545 7/29/2007 10467 10814 10545 7/30/2007 10526 10925 10603 7/31/2007 10420 10787 10497 8/1/2007 10539 10866 10616 8/2/2007 10555 10916 10633 8/3/2007 10420 10627 10498 8/4/2007 10420 10627 10498 8/5/2007 10420 10627 10498 8/6/2007 10756 10884 10836 8/7/2007 10793 10951 10875 8/8/2007 10852 11109 10935 8/9/2007 10602 10781 10681 8/10/2007 10591 10786 10671 8/11/2007 10591 10786 10671 8/12/2007 10591 10786 10671 8/13/2007 10604 10782 10684 8/14/2007 10465 10587 10542 8/15/2007 10397 10443 10475 8/16/2007 10383 10477 10462 8/17/2007 10572 10735 10654 8/18/2007 10572 10735 10654 8/19/2007 10572 10735 10654 8/20/2007 10560 10732 10640 8/21/2007 10568 10744 10649 8/22/2007 10671 10870 10753 8/23/2007 10648 10858 10730 8/24/2007 10751 10985 10835 8/25/2007 10751 10985 10835 8/26/2007 10751 10985 10835 8/27/2007 10680 10892 10762 8/28/2007 10473 10636 10555 8/29/2007 10644 10872 10727 8/30/2007 10583 10827 10666 8/31/2007 10663 10949 10746 9/1/2007 10663 10949 10746 9/2/2007 10663 10949 10746 9/3/2007 10663 10949 10746 9/4/2007 10720 11064 10805 9/5/2007 10549 10942 10631 9/6/2007 10570 10990 10654 9/7/2007 10471 10804 10554 9/8/2007 10471 10804 10554 9/9/2007 10471 10804 10554 9/10/2007 10475 10791 10557 9/11/2007 10612 10938 10698 9/12/2007 10640 10942 10726 9/13/2007 10669 11034 10755 9/14/2007 10678 11037 10763 9/15/2007 10678 11037 10763 9/16/2007 10678 11037 10763 9/17/2007 10625 10980 10711 9/18/2007 10831 11301 10920 9/19/2007 10888 11370 10978 9/20/2007 10825 11296 10915 9/21/2007 10861 11348 10951 9/22/2007 10861 11348 10951 9/23/2007 10861 11348 10951 9/24/2007 10816 11289 10907 9/25/2007 10804 11285 10894 9/26/2007 10911 11348 11004 9/27/2007 10953 11393 11045 9/28/2007 10958 11359 11050 9/29/2007 10958 11359 11050 9/30/2007 10958 11359 11050 10/1/2007 10951 11510 11043 10/2/2007 10947 11507 11040 10/3/2007 10886 11457 10978 10/4/2007 10926 11481 11019 10/5/2007 10979 11594 11071 10/6/2007 10979 11594 11071 10/7/2007 10979 11594 11071 10/8/2007 10958 11557 11051 10/9/2007 11025 11650 11120 10/10/2007 11044 11631 11138 10/11/2007 11004 11572 11098 10/12/2007 11080 11627 11175 10/13/2007 11080 11627 11175 10/14/2007 11080 11627 11175 10/15/2007 10996 11530 11091 10/16/2007 10970 11454 11064 10/17/2007 10979 11475 11075 10/18/2007 10987 11467 11083 10/19/2007 10822 11173 10915 10/20/2007 10822 11173 10915 10/21/2007 10822 11173 10915 10/22/2007 10900 11216 10995 10/23/2007 10911 11315 11006 10/24/2007 10898 11287 10993 10/25/2007 10958 11276 11055 10/26/2007 11017 11432 11114 10/27/2007 11017 11432 11114 10/28/2007 11017 11432 11114 10/29/2007 11053 11476 11150 10/30/2007 11038 11402 11135 10/31/2007 11146 11539 11251 11/1/2007 10898 11237 10999 11/2/2007 10930 11247 11027 11/3/2007 10930 11247 11027 11/4/2007 10930 11247 11027 11/5/2007 10945 11192 11042 11/6/2007 10998 11327 11094 11/7/2007 10816 11000 10905 11/8/2007 10905 10994 11004 11/9/2007 10807 10837 10902 11/10/2007 10807 10837 10902 11/11/2007 10807 10837 10902 11/12/2007 10763 10729 10846 11/13/2007 11002 11045 11089 11/14/2007 10989 10970 11069 11/15/2007 10936 10825 11011 11/16/2007 11044 10882 11120 11/17/2007 11044 10882 11120 11/18/2007 11044 10882 11120 11/19/2007 10898 10692 10977 11/20/2007 10993 10741 11072 11/21/2007 10869 10571 10947 11/22/2007 10869 10571 10947 11/23/2007 10972 10750 11052 11/24/2007 10972 10750 11052 11/25/2007 10972 10750 11052 11/26/2007 10860 10500 10940 11/27/2007 11015 10658 11096 11/28/2007 11218 10966 11300 11/29/2007 11197 10972 11278 11/30/2007 11256 11057 11334 12/1/2007 11256 11057 11334 12/2/2007 11256 11057 11334 12/3/2007 11188 10992 11271 12/4/2007 11165 10920 11248 12/5/2007 11237 11092 11320 12/6/2007 11336 11260 11421 12/7/2007 11338 11240 11424 12/8/2007 11338 11240 11424 12/9/2007 11338 11240 11424 12/10/2007 11383 11325 11468 12/11/2007 11156 11039 11240 12/12/2007 11224 11107 11308 12/13/2007 11222 11121 11306 12/14/2007 11106 10969 11188 12/15/2007 11106 10969 11188 12/16/2007 11106 10969 11188 12/17/2007 11019 10804 11102 12/18/2007 11072 10872 11154 12/19/2007 11076 10857 11158 12/20/2007 11114 10914 11196 12/21/2007 11249 11097 11335 12/22/2007 11249 11097 11335 12/23/2007 11249 11097 11335 12/24/2007 11319 11187 11405 12/25/2007 11319 11187 11405 12/26/2007 11289 11196 11377 12/27/2007 11162 11040 11248 12/28/2007 11200 11056 11286 12/29/2007 11200 11056 11286 12/30/2007 11200 11056 11286 12/31/2007 11097 10980 11180 1/1/2008 11097 10980 11180 1/2/2008 10897 10824 10981 1/3/2008 10859 10824 10942 1/4/2008 10757 10558 10839 1/5/2008 10757 10558 10839 1/6/2008 10757 10558 10839 1/7/2008 10899 10592 10983 1/8/2008 10791 10401 10874 1/9/2008 10852 10544 10936 1/10/2008 10942 10628 11027 1/11/2008 10729 10484 10812 1/12/2008 10729 10484 10812 1/13/2008 10729 10484 10812 1/14/2008 10697 10598 10781 1/15/2008 10531 10334 10613 1/16/2008 10599 10277 10682 1/17/2008 10415 9979 10496 1/18/2008 10319 9918 10399 1/19/2008 10319 9918 10399 1/20/2008 10319 9918 10399 1/21/2008 10319 9918 10399 1/22/2008 10206 9809 10285 1/23/2008 10361 10019 10443 1/24/2008 10287 10120 10368 1/25/2008 10162 9960 10241 1/26/2008 10162 9960 10241 1/27/2008 10162 9960 10241 1/28/2008 10323 10135 10404 1/29/2008 10321 10198 10403 1/30/2008 10219 10150 10299 1/31/2008 10327 10322 10409 2/1/2008 10529 10448 10614 2/2/2008 10529 10448 10614 2/3/2008 10529 10448 10614 2/4/2008 10440 10339 10525 2/5/2008 10230 10009 10312 2/6/2008 10221 9937 10303 2/7/2008 10306 10017 10390 2/8/2008 10236 9975 10319 2/9/2008 10236 9975 10319 2/10/2008 10236 9975 10319 2/11/2008 10334 10035 10418 2/12/2008 10444 10108 10530 2/13/2008 10478 10249 10564 2/14/2008 10370 10112 10454 2/15/2008 10461 10121 10547 2/16/2008 10461 10121 10547 2/17/2008 10461 10121 10547 2/18/2008 10461 10121 10547 2/19/2008 10459 10113 10544 2/20/2008 10468 10198 10554 2/21/2008 10381 10070 10466 2/22/2008 10474 10151 10561 2/23/2008 10474 10151 10561 2/24/2008 10474 10151 10561 2/25/2008 10544 10291 10632 2/26/2008 10593 10362 10682 2/27/2008 10553 10355 10642 2/28/2008 10497 10264 10585 2/29/2008 10283 9986 10368 3/1/2008 10283 9986 10368 3/2/2008 10283 9986 10368 3/3/2008 10349 9992 10435 3/4/2008 10366 9957 10452 3/5/2008 10398 10015 10484 3/6/2008 10242 9796 10327 3/7/2008 10181 9713 10265 3/8/2008 10181 9713 10265 3/9/2008 10181 9713 10265 3/10/2008 10164 9564 10249 3/11/2008 10366 9919 10453 3/12/2008 10364 9833 10450 3/13/2008 10349 9883 10437 3/14/2008 10191 9678 10277 3/15/2008 10191 9678 10277 3/16/2008 10191 9678 10277 3/17/2008 10119 9593 10203 3/18/2008 10398 10000 10485 3/19/2008 10338 9757 10426 3/20/2008 10483 9991 10573 3/21/2008 10483 9991 10573 3/22/2008 10483 9991 10573 3/23/2008 10483 9991 10573 3/24/2008 10568 10144 10661 3/25/2008 10594 10167 10688 3/26/2008 10532 10079 10625 3/27/2008 10526 9965 10618 3/28/2008 10526 9887 10619 3/29/2008 10526 9887 10619 3/30/2008 10526 9887 10619 3/31/2008 10547 9943 10635 4/1/2008 10803 10300 10888 4/2/2008 10694 10282 10780 4/3/2008 10705 10296 10790 4/4/2008 10743 10304 10826 4/5/2008 10743 10304 10826 4/6/2008 10743 10304 10826 4/7/2008 10724 10320 10808 4/8/2008 10673 10271 10758 4/9/2008 10568 10189 10653 4/10/2008 10607 10235 10691 4/11/2008 10500 10027 10584 4/12/2008 10500 10027 10584 4/13/2008 10500 10027 10584 4/14/2008 10517 9993 10601 4/15/2008 10562 10039 10646 4/16/2008 10615 10268 10700 4/17/2008 10645 10275 10730 4/18/2008 10703 10461 10791 4/19/2008 10703 10461 10791 4/20/2008 10703 10461 10791 4/21/2008 10715 10445 10804 4/22/2008 10590 10353 10676 4/23/2008 10660 10383 10747 4/24/2008 10632 10450 10719 4/25/2008 10617 10518 10704 4/26/2008 10617 10518 10704 4/27/2008 10617 10518 10704 4/28/2008 10724 10508 10814 4/29/2008 10792 10467 10882 4/30/2008 10713 10427 10802 5/1/2008 10848 10608 10939 5/2/2008 10813 10642 10904 5/3/2008 10813 10642 10904 5/4/2008 10813 10642 10904 5/5/2008 10813 10595 10903 5/6/2008 10841 10677 10932 5/7/2008 10741 10488 10832 5/8/2008 10764 10527 10856 5/9/2008 10673 10458 10761 5/10/2008 10673 10458 10761 5/11/2008 10673 10458 10761 5/12/2008 10805 10573 10896 5/13/2008 10841 10572 10934 5/14/2008 10882 10616 10974 5/15/2008 10946 10730 11039 5/16/2008 10943 10744 11037 5/17/2008 10943 10744 11037 5/18/2008 10943 10744 11037 5/19/2008 10907 10754 11002 5/20/2008 10841 10654 10934 5/21/2008 10737 10484 10829 5/22/2008 10831 10513 10925 5/23/2008 10762 10375 10857 5/24/2008 10762 10375 10857 5/25/2008 10762 10375 10857 5/26/2008 10762 10375 10857 5/27/2008 10860 10446 10955 5/28/2008 10811 10489 10907 5/29/2008 10918 10546 11016 5/30/2008 10926 10562 11022 5/31/2008 10926 10562 11022 6/1/2008 10926 10562 11022 6/2/2008 10826 10452 10923 6/3/2008 10756 10392 10851 6/4/2008 10820 10393 10916 6/5/2008 10943 10597 11041 6/6/2008 10673 10271 10766 6/7/2008 10673 10271 10766 6/8/2008 10673 10271 10766 6/9/2008 10675 10279 10769 6/10/2008 10722 10254 10816 6/11/2008 10573 10083 10665 6/12/2008 10611 10117 10705 6/13/2008 10664 10269 10760 6/14/2008 10664 10269 10760 6/15/2008 10664 10269 10760 6/16/2008 10534 10270 10629 6/17/2008 10460 10201 10553 6/18/2008 10338 10102 10430 6/19/2008 10409 10143 10500 6/20/2008 10325 9955 10416 6/21/2008 10325 9955 10416 6/22/2008 10325 9955 10416 6/23/2008 10265 9955 10357 6/24/2008 10288 9927 10380 6/25/2008 10423 9986 10517 6/26/2008 10201 9695 10291 6/27/2008 10097 9660 10187 6/28/2008 10097 9660 10187 6/29/2008 10097 9660 10187 6/30/2008 10111 9672 10201 7/1/2008 10124 9711 10216 7/2/2008 10051 9535 10141 7/3/2008 10096 9545 10186 7/4/2008 10096 9545 10186 7/5/2008 10096 9545 10186 7/6/2008 10096 9545 10186 7/7/2008 10105 9465 10196 7/8/2008 10255 9631 10348 7/9/2008 10210 9412 10303 7/10/2008 10223 9478 10314 7/11/2008 10144 9374 10235 7/12/2008 10144 9374 10235 7/13/2008 10144 9374 10235 7/14/2008 10156 9289 10249 7/15/2008 10154 9188 10246 7/16/2008 10311 9420 10404 7/17/2008 10323 9533 10419 7/18/2008 10244 9536 10339 7/19/2008 10244 9536 10339 7/20/2008 10244 9536 10339 7/21/2008 10169 9531 10264 7/22/2008 10332 9660 10428 7/23/2008 10448 9699 10545 7/24/2008 10285 9475 10380 7/25/2008 10253 9515 10348 7/26/2008 10253 9515 10348 7/27/2008 10253 9515 10348 7/28/2008 10174 9338 10268 7/29/2008 10364 9557 10460 7/30/2008 10486 9716 10586 7/31/2008 10381 9591 10479 8/1/2008 10356 9537 10453 8/2/2008 10356 9537 10453 8/3/2008 10356 9537 10453 8/4/2008 10439 9452 10538 8/5/2008 10655 9724 10757 8/6/2008 10681 9761 10785 8/7/2008 10491 9587 10592 8/8/2008 10773 9816 10878 8/9/2008 10773 9816 10878 8/10/2008 10773 9816 10878 8/11/2008 10865 9887 10970 8/12/2008 10876 9768 10983 8/13/2008 10808 9743 10913 8/14/2008 10880 9797 10987 8/15/2008 10957 9838 11066 8/16/2008 10957 9838 11066 8/17/2008 10957 9838 11066 8/18/2008 10808 9690 10914 8/19/2008 10709 9601 10815 8/20/2008 10707 9661 10813 8/21/2008 10640 9686 10745 8/22/2008 10718 9797 10824 8/23/2008 10718 9797 10824 8/24/2008 10718 9797 10824 8/25/2008 10576 9604 10682 8/26/2008 10525 9640 10629 8/27/2008 10591 9718 10696 8/28/2008 10673 9864 10780 8/29/2008 10536 9729 10640 8/30/2008 10536 9729 10640 8/31/2008 10536 9729 10640 9/1/2008 10536 9729 10640 9/2/2008 10655 9690 10763 9/3/2008 10636 9675 10743 9/4/2008 10473 9386 10578 9/5/2008 10651 9428 10759 9/6/2008 10651 9428 10759 9/7/2008 10651 9428 10759 9/8/2008 10846 9623 10958 9/9/2008 10760 9294 10873 9/10/2008 10767 9352 10879 9/11/2008 10887 9484 11001 9/12/2008 10923 9504 11038 9/13/2008 10923 9504 11038 9/14/2008 10923 9504 11038 9/15/2008 10741 9056 10854 9/16/2008 10743 9215 10856 9/17/2008 10435 8781 10541 9/18/2008 10666 9164 10778 9/19/2008 10693 9533 10806 9/20/2008 10693 9533 10806 9/21/2008 10693 9533 10806 9/22/2008 10428 9169 10538 9/23/2008 10400 9026 10507 9/24/2008 10387 9008 10496 9/25/2008 10573 9185 10685 9/26/2008 10638 9216 10750 9/27/2008 10638 9216 10750 9/28/2008 10638 9216 10750 9/29/2008 10158 8407 10264 9/30/2008 10376 8862 10487 10/1/2008 10499 8824 10612 10/2/2008 10292 8469 10405 10/3/2008 10163 8355 10276 10/4/2008 10163 8355 10276 10/5/2008 10163 8355 10276 10/6/2008 9898 8034 10006 10/7/2008 9588 7573 9693 10/8/2008 9420 7491 9520 10/9/2008 8832 6920 8926 10/10/2008 8584 6840 8675 10/11/2008 8584 6840 8675 10/12/2008 8584 6840 8675 10/13/2008 9293 7632 9393 10/14/2008 9112 7591 9208 10/15/2008 8537 6906 8625 10/16/2008 8815 7200 8907 10/17/2008 8875 7155 8967 10/18/2008 8875 7155 8967 10/19/2008 8875 7155 8967 10/20/2008 9119 7496 9213 10/21/2008 8972 7265 9065 10/22/2008 8638 6824 8728 10/23/2008 8649 6910 8738 10/24/2008 8309 6672 8393 10/25/2008 8309 6672 8393 10/26/2008 8309 6672 8393 10/27/2008 8139 6460 8221 10/28/2008 8795 7157 8887 10/29/2008 8664 7078 8754 10/30/2008 8858 7262 8950 10/31/2008 8931 7374 9029
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF............... -19.87% -5.50% S&P 500 EQUAL WEIGHT CONSUMER STAPLES TOTAL RETURN INDEX.. -19.76% -4.99% S&P 500 TOTAL RETURN INDEX................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 19 ANNUAL REPORT Rydex S&P Equal Weight Consumer Staples ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ KROGER CO. 3.02% REYNOLDS AMERICAN, INC. 2.95% UST, INC. 2.91% CAMPBELL SOUP CO. 2.91% GENERAL MILLS, INC. 2.87% ARCHER-DANIELS-MIDLAND CO. 2.84% CLOROX CO. 2.82% ALTRIA GROUP, INC. 2.80% KIMBERLY-CLARK CORP. 2.79% ANHEUSER-BUSCH COS., INC. 2.78% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Food Products 31.49 Beverages 20.26 Food & Staples Retailing 19.62 Tobacco 14.00 Household Products 10.72 Personal Products 3.91
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 20 RYDEX S&P EQUAL WEIGHT ENERGY ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P Equal Weight Energy ETF returned -39.28%. For the same period, its benchmark, the S&P Equal Weight Energy Total Return Index, returned -39.06% significantly underperforming the cap-weighted S&P Consumer Staples Index's -11.85% total return. Both RYE and traditional cap- weighted strategies were hurt more by the fuel (oil/gas/consumable fuels) industries than by energy equipment and services. However, the equal weighting of the oil/gas/consumable fuels industries was one of the biggest reasons for the underperformance of the ETF, returning about 9% less than the cap-weighted index. Specifically, behind the underperformance was the equal weight's diminished allocation ExxonMobil (XOM) -- the best performing stock in the oil/gas/consumer fuels industry, returning -9.15% for the year ending 10/31/08. Due to the fund's equal-weighting strategy, XOM's average weight was only 4.02%, versus 36.68% for the cap-weighted index. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 RYDEX S&P S&P 500 EQUAL WEIGHT EQUAL WEIGHT TOTAL RETURN ENERGY TOTAL ENERGY ETF(A) INDEX(B) RETURN INDEX(C) ------------- ------------ --------------- 11/1/2006 10000 10000 10000 11/2/2006 10006 9999 10007 11/3/2006 10248 9978 10249 11/4/2006 10248 9978 10249 11/5/2006 10248 9978 10249 11/6/2006 10341 10091 10342 11/7/2006 10238 10114 10238 11/8/2006 10405 10137 10408 11/9/2006 10486 10085 10488 11/10/2006 10337 10104 10340 11/11/2006 10337 10104 10340 11/12/2006 10337 10104 10340 11/13/2006 10316 10132 10319 11/14/2006 10358 10198 10360 11/15/2006 10488 10225 10491 11/16/2006 10178 10249 10181 11/17/2006 10300 10259 10302 11/18/2006 10300 10259 10302 11/19/2006 10300 10259 10302 11/20/2006 10283 10254 10288 11/21/2006 10484 10272 10489 11/22/2006 10434 10297 10438 11/23/2006 10434 10297 10438 11/24/2006 10420 10260 10425 11/25/2006 10420 10260 10425 11/26/2006 10420 10260 10425 11/27/2006 10345 10120 10349 11/28/2006 10538 10158 10542 11/29/2006 10910 10256 10915 11/30/2006 10951 10264 10956 12/1/2006 11009 10236 11015 12/2/2006 11009 10236 11015 12/3/2006 11009 10236 11015 12/4/2006 10943 10327 10948 12/5/2006 10972 10368 10977 12/6/2006 10982 10357 10988 12/7/2006 10931 10317 10935 12/8/2006 10920 10336 10926 12/9/2006 10920 10336 10926 12/10/2006 10920 10336 10926 12/11/2006 10879 10359 10884 12/12/2006 10848 10349 10854 12/13/2006 10933 10363 10939 12/14/2006 11067 10453 11076 12/15/2006 10968 10465 10977 12/16/2006 10968 10465 10977 12/17/2006 10968 10465 10977 12/18/2006 10602 10431 10610 12/19/2006 10747 10454 10754 12/20/2006 10592 10440 10600 12/21/2006 10509 10404 10517 12/22/2006 10436 10350 10446 12/23/2006 10436 10350 10446 12/24/2006 10436 10350 10446 12/25/2006 10436 10350 10446 12/26/2006 10385 10395 10393 12/27/2006 10484 10470 10492 12/28/2006 10469 10455 10478 12/29/2006 10364 10408 10373 12/30/2006 10364 10408 10373 12/31/2006 10364 10408 10373 1/1/2007 10364 10408 10373 1/2/2007 10364 10408 10373 1/3/2007 9962 10398 9971 1/4/2007 9770 10411 9781 1/5/2007 9843 10347 9853 1/6/2007 9843 10347 9853 1/7/2007 9843 10347 9853 1/8/2007 9861 10373 9872 1/9/2007 9766 10368 9777 1/10/2007 9648 10389 9657 1/11/2007 9590 10455 9600 1/12/2007 9841 10506 9851 1/13/2007 9841 10506 9851 1/14/2007 9841 10506 9851 1/15/2007 9841 10506 9851 1/16/2007 9752 10515 9764 1/17/2007 9861 10506 9873 1/18/2007 9779 10475 9791 1/19/2007 10042 10506 10053 1/20/2007 10042 10506 10053 1/21/2007 10042 10506 10053 1/22/2007 10037 10451 10050 1/23/2007 10294 10488 10307 1/24/2007 10313 10577 10327 1/25/2007 10083 10458 10095 1/26/2007 10112 10445 10125 1/27/2007 10112 10445 10125 1/28/2007 10112 10445 10125 1/29/2007 10058 10435 10072 1/30/2007 10317 10495 10331 1/31/2007 10383 10566 10398 2/1/2007 10431 10625 10446 2/2/2007 10485 10643 10500 2/3/2007 10485 10643 10500 2/4/2007 10485 10643 10500 2/5/2007 10439 10634 10455 2/6/2007 10443 10641 10459 2/7/2007 10369 10660 10383 2/8/2007 10458 10648 10474 2/9/2007 10404 10573 10420 2/10/2007 10404 10573 10420 2/11/2007 10404 10573 10420 2/12/2007 10249 10539 10265 2/13/2007 10394 10621 10409 2/14/2007 10425 10705 10442 2/15/2007 10309 10717 10325 2/16/2007 10323 10708 10340 2/17/2007 10323 10708 10340 2/18/2007 10323 10708 10340 2/19/2007 10323 10708 10340 2/20/2007 10253 10739 10269 2/21/2007 10398 10724 10415 2/22/2007 10532 10717 10550 2/23/2007 10551 10680 10570 2/24/2007 10551 10680 10570 2/25/2007 10551 10680 10570 2/26/2007 10634 10668 10653 2/27/2007 10271 10299 10289 2/28/2007 10307 10359 10324 3/1/2007 10331 10332 10350 3/2/2007 10141 10215 10159 3/3/2007 10141 10215 10159 3/4/2007 10141 10215 10159 3/5/2007 10023 10119 10042 3/6/2007 10216 10276 10235 3/7/2007 10383 10254 10403 3/8/2007 10429 10327 10448 3/9/2007 10437 10334 10458 3/10/2007 10437 10334 10458 3/11/2007 10437 10334 10458 3/12/2007 10387 10362 10409 3/13/2007 10255 10154 10274 3/14/2007 10396 10223 10417 3/15/2007 10377 10261 10397 3/16/2007 10307 10222 10328 3/17/2007 10307 10222 10328 3/18/2007 10307 10222 10328 3/19/2007 10512 10333 10534 3/20/2007 10522 10399 10545 3/21/2007 10723 10577 10747 3/22/2007 10916 10573 10941 3/23/2007 10953 10584 10979 3/24/2007 10953 10584 10979 3/25/2007 10953 10584 10979 3/26/2007 11042 10595 11069 3/27/2007 11015 10529 11042 3/28/2007 10976 10448 11002 3/29/2007 11057 10487 11084 3/30/2007 10934 10475 10960 3/31/2007 10934 10475 10960 4/1/2007 10934 10475 10960 4/2/2007 11086 10502 11114 4/3/2007 11102 10602 11131 4/4/2007 11179 10614 11207 4/5/2007 11233 10649 11262 4/6/2007 11233 10649 11262 4/7/2007 11233 10649 11262 4/8/2007 11233 10649 11262 4/9/2007 11229 10655 11259 4/10/2007 11401 10684 11432 4/11/2007 11335 10615 11366 4/12/2007 11540 10681 11571 4/13/2007 11555 10718 11586 4/14/2007 11555 10718 11586 4/15/2007 11555 10718 11586 4/16/2007 11623 10833 11657 4/17/2007 11517 10855 11551 4/18/2007 11405 10863 11437 4/19/2007 11287 10850 11319 4/20/2007 11445 10951 11478 4/21/2007 11445 10951 11478 4/22/2007 11445 10951 11478 4/23/2007 11501 10926 11535 4/24/2007 11474 10922 11507 4/25/2007 11770 11034 11805 4/26/2007 11737 11026 11771 4/27/2007 11762 11025 11796 4/28/2007 11762 11025 11796 4/29/2007 11762 11025 11796 4/30/2007 11604 10939 11639 5/1/2007 11665 10968 11699 5/2/2007 11801 11040 11838 5/3/2007 11907 11091 11943 5/4/2007 11907 11115 11945 5/5/2007 11907 11115 11945 5/6/2007 11907 11115 11945 5/7/2007 11899 11144 11937 5/8/2007 11855 11132 11892 5/9/2007 11903 11171 11941 5/10/2007 11681 11017 11717 5/11/2007 11936 11124 11975 5/12/2007 11936 11124 11975 5/13/2007 11936 11124 11975 5/14/2007 11963 11105 12001 5/15/2007 11953 11091 11991 5/16/2007 11996 11190 12036 5/17/2007 12198 11181 12238 5/18/2007 12413 11255 12455 5/19/2007 12413 11255 12455 5/20/2007 12413 11255 12455 5/21/2007 12538 11272 12580 5/22/2007 12409 11265 12451 5/23/2007 12453 11252 12495 5/24/2007 12210 11144 12252 5/25/2007 12384 11205 12427 5/26/2007 12384 11205 12427 5/27/2007 12384 11205 12427 5/28/2007 12384 11205 12427 5/29/2007 12320 11224 12363 5/30/2007 12596 11318 12641 5/31/2007 12515 11321 12560 6/1/2007 12617 11363 12663 6/2/2007 12617 11363 12663 6/3/2007 12617 11363 12663 6/4/2007 12878 11384 12926 6/5/2007 12801 11324 12848 6/6/2007 12594 11226 12641 6/7/2007 12332 11030 12378 6/8/2007 12424 11155 12470 6/9/2007 12424 11155 12470 6/10/2007 12424 11155 12470 6/11/2007 12519 11166 12565 6/12/2007 12353 11047 12400 6/13/2007 12658 11217 12705 6/14/2007 12907 11272 12957 6/15/2007 13058 11345 13109 6/16/2007 13058 11345 13109 6/17/2007 13058 11345 13109 6/18/2007 13070 11332 13121 6/19/2007 13078 11352 13129 6/20/2007 12724 11197 12773 6/21/2007 12991 11269 13042 6/22/2007 12940 11124 12992 6/23/2007 12940 11124 12992 6/24/2007 12940 11124 12992 6/25/2007 12726 11088 12777 6/26/2007 12460 11053 12510 6/27/2007 12635 11154 12685 6/28/2007 12545 11150 12596 6/29/2007 12639 11133 12691 6/30/2007 12639 11133 12691 7/1/2007 12639 11133 12691 7/2/2007 12830 11252 12882 7/3/2007 12905 11294 12957 7/4/2007 12905 11294 12957 7/5/2007 12905 11298 12959 7/6/2007 13027 11339 13082 7/7/2007 13027 11339 13082 7/8/2007 13027 11339 13082 7/9/2007 13108 11349 13164 7/10/2007 13006 11188 13060 7/11/2007 12981 11254 13037 7/12/2007 13170 11468 13226 7/13/2007 13251 11504 13309 7/14/2007 13251 11504 13309 7/15/2007 13251 11504 13309 7/16/2007 13056 11482 13112 7/17/2007 12938 11481 12994 7/18/2007 13168 11458 13226 7/19/2007 13328 11510 13385 7/20/2007 13251 11369 13309 7/21/2007 13251 11369 13309 7/22/2007 13251 11369 13309 7/23/2007 13297 11425 13355 7/24/2007 12869 11199 12926 7/25/2007 13035 11251 13093 7/26/2007 12653 10988 12709 7/27/2007 12385 10814 12440 7/28/2007 12385 10814 12440 7/29/2007 12385 10814 12440 7/30/2007 12529 10925 12585 7/31/2007 12446 10787 12502 8/1/2007 12388 10866 12442 8/2/2007 12292 10916 12346 8/3/2007 11864 10627 11917 8/4/2007 11864 10627 11917 8/5/2007 11864 10627 11917 8/6/2007 11916 10884 11969 8/7/2007 12163 10951 12218 8/8/2007 12400 11109 12457 8/9/2007 12097 10781 12152 8/10/2007 12255 10786 12311 8/11/2007 12255 10786 12311 8/12/2007 12255 10786 12311 8/13/2007 12219 10782 12276 8/14/2007 12024 10587 12080 8/15/2007 11698 10443 11752 8/16/2007 11549 10477 11600 8/17/2007 11914 10735 11970 8/18/2007 11914 10735 11970 8/19/2007 11914 10735 11970 8/20/2007 11929 10732 11984 8/21/2007 11756 10744 11811 8/22/2007 11918 10870 11975 8/23/2007 12055 10858 12112 8/24/2007 12288 10985 12347 8/25/2007 12288 10985 12347 8/26/2007 12288 10985 12347 8/27/2007 12132 10892 12191 8/28/2007 11856 10636 11913 8/29/2007 12240 10872 12300 8/30/2007 12184 10827 12243 8/31/2007 12338 10949 12397 9/1/2007 12338 10949 12397 9/2/2007 12338 10949 12397 9/3/2007 12338 10949 12397 9/4/2007 12633 11064 12695 9/5/2007 12635 10942 12697 9/6/2007 12780 10990 12844 9/7/2007 12595 10804 12659 9/8/2007 12595 10804 12659 9/9/2007 12595 10804 12659 9/10/2007 12512 10791 12574 9/11/2007 12716 10938 12779 9/12/2007 12799 10942 12864 9/13/2007 12882 11034 12948 9/14/2007 12917 11037 12983 9/15/2007 12917 11037 12983 9/16/2007 12917 11037 12983 9/17/2007 12871 10980 12938 9/18/2007 13258 11301 13327 9/19/2007 13370 11370 13439 9/20/2007 13415 11296 13487 9/21/2007 13563 11348 13635 9/22/2007 13563 11348 13635 9/23/2007 13563 11348 13635 9/24/2007 13449 11289 13521 9/25/2007 13304 11285 13374 9/26/2007 13306 11348 13379 9/27/2007 13401 11393 13476 9/28/2007 13302 11359 13376 9/29/2007 13302 11359 13376 9/30/2007 13302 11359 13376 10/1/2007 13522 11510 13599 10/2/2007 13433 11507 13507 10/3/2007 13337 11457 13411 10/4/2007 13445 11481 13520 10/5/2007 13474 11594 13551 10/6/2007 13474 11594 13551 10/7/2007 13474 11594 13551 10/8/2007 13345 11557 13422 10/9/2007 13614 11650 13691 10/10/2007 13857 11631 13935 10/11/2007 13876 11572 13954 10/12/2007 13986 11627 14066 10/13/2007 13986 11627 14066 10/14/2007 13986 11627 14066 10/15/2007 14108 11530 14191 10/16/2007 14069 11454 14151 10/17/2007 13957 11475 14038 10/18/2007 14071 11467 14154 10/19/2007 13427 11173 13507 10/20/2007 13427 11173 13507 10/21/2007 13427 11173 13507 10/22/2007 13348 11216 13426 10/23/2007 13499 11315 13579 10/24/2007 13663 11287 13746 10/25/2007 13846 11276 13930 10/26/2007 14079 11432 14164 10/27/2007 14079 11432 14164 10/28/2007 14079 11432 14164 10/29/2007 14104 11476 14190 10/30/2007 13676 11402 13759 10/31/2007 14027 11539 14112 11/1/2007 13680 11237 13776 11/2/2007 13930 11247 14047 11/3/2007 13930 11247 14047 11/4/2007 13930 11247 14047 11/5/2007 13867 11192 13990 11/6/2007 14291 11327 14408 11/7/2007 13869 11000 13977 11/8/2007 13977 10994 14084 11/9/2007 13778 10837 13882 11/10/2007 13778 10837 13882 11/11/2007 13778 10837 13882 11/12/2007 13106 10729 13212 11/13/2007 13456 11045 13570 11/14/2007 13427 10970 13539 11/15/2007 13088 10825 13202 11/16/2007 13345 10882 13465 11/17/2007 13345 10882 13465 11/18/2007 13345 10882 13465 11/19/2007 13165 10692 13270 11/20/2007 13497 10741 13601 11/21/2007 13217 10571 13319 11/22/2007 13217 10571 13319 11/23/2007 13499 10750 13602 11/24/2007 13499 10750 13602 11/25/2007 13499 10750 13602 11/26/2007 13187 10500 13285 11/27/2007 13011 10658 13107 11/28/2007 13217 10966 13312 11/29/2007 13379 10972 13477 11/30/2007 13397 11057 13493 12/1/2007 13397 11057 13493 12/2/2007 13397 11057 13493 12/3/2007 13483 10992 13582 12/4/2007 13352 10920 13452 12/5/2007 13555 11092 13658 12/6/2007 13927 11260 14035 12/7/2007 13911 11240 14017 12/8/2007 13911 11240 14017 12/9/2007 13911 11240 14017 12/10/2007 14013 11325 14122 12/11/2007 13713 11039 13817 12/12/2007 14123 11107 14233 12/13/2007 14185 11121 14297 12/14/2007 14011 10969 14120 12/15/2007 14011 10969 14120 12/16/2007 14011 10969 14120 12/17/2007 13740 10804 13847 12/18/2007 13927 10872 14035 12/19/2007 14046 10857 14157 12/20/2007 14183 10914 14296 12/21/2007 14944 11097 14692 12/22/2007 14944 11097 14692 12/23/2007 14944 11097 14692 12/24/2007 15040 11187 14786 12/25/2007 15040 11187 14786 12/26/2007 15185 11196 14929 12/27/2007 15034 11040 14771 12/28/2007 15140 11056 14883 12/29/2007 15140 11056 14883 12/30/2007 15140 11056 14883 12/31/2007 14990 10980 14727 1/1/2008 14990 10980 14727 1/2/2008 15158 10824 14894 1/3/2008 15152 10824 14887 1/4/2008 14688 10558 14430 1/5/2008 14688 10558 14430 1/6/2008 14688 10558 14430 1/7/2008 14513 10592 14259 1/8/2008 14331 10401 14079 1/9/2008 14498 10544 14242 1/10/2008 14421 10628 14169 1/11/2008 14244 10484 13995 1/12/2008 14244 10484 13995 1/13/2008 14244 10484 13995 1/14/2008 14631 10598 14376 1/15/2008 14027 10334 13780 1/16/2008 13570 10277 13331 1/17/2008 13006 9979 12776 1/18/2008 13045 9918 12815 1/19/2008 13045 9918 12815 1/20/2008 13045 9918 12815 1/21/2008 13045 9918 12815 1/22/2008 12723 9809 12497 1/23/2008 12741 10019 12515 1/24/2008 13189 10120 12956 1/25/2008 13113 9960 12883 1/26/2008 13113 9960 12883 1/27/2008 13113 9960 12883 1/28/2008 13373 10135 13139 1/29/2008 13415 10198 13180 1/30/2008 13314 10150 13080 1/31/2008 13257 10322 13026 2/1/2008 13500 10448 13264 2/2/2008 13500 10448 13264 2/3/2008 13500 10448 13264 2/4/2008 13627 10339 13391 2/5/2008 13089 10009 12861 2/6/2008 12929 9937 12704 2/7/2008 13144 10017 12914 2/8/2008 13426 9975 13193 2/9/2008 13426 9975 13193 2/10/2008 13426 9975 13193 2/11/2008 13844 10035 13606 2/12/2008 13728 10108 13492 2/13/2008 14124 10249 13883 2/14/2008 14069 10112 13828 2/15/2008 13970 10121 13732 2/16/2008 13970 10121 13732 2/17/2008 13970 10121 13732 2/18/2008 13970 10121 13732 2/19/2008 14397 10113 14153 2/20/2008 14668 10198 14420 2/21/2008 14296 10070 14054 2/22/2008 14452 10151 14208 2/23/2008 14452 10151 14208 2/24/2008 14452 10151 14208 2/25/2008 14848 10291 14599 2/26/2008 15086 10362 14834 2/27/2008 14870 10355 14621 2/28/2008 15185 10264 14932 2/29/2008 14666 9986 14421 3/1/2008 14666 9986 14421 3/2/2008 14666 9986 14421 3/3/2008 14791 9992 14544 3/4/2008 14548 9957 14306 3/5/2008 14874 10015 14627 3/6/2008 14546 9796 14302 3/7/2008 14275 9713 14036 3/8/2008 14275 9713 14036 3/9/2008 14275 9713 14036 3/10/2008 14005 9564 13769 3/11/2008 14653 9919 14408 3/12/2008 14410 9833 14168 3/13/2008 14703 9883 14458 3/14/2008 14436 9678 14196 3/15/2008 14436 9678 14196 3/16/2008 14436 9678 14196 3/17/2008 13833 9593 13599 3/18/2008 14436 10000 14195 3/19/2008 13596 9757 13366 3/20/2008 13605 9991 13376 3/21/2008 13605 9991 13376 3/22/2008 13605 9991 13376 3/23/2008 13605 9991 13376 3/24/2008 13848 10144 13617 3/25/2008 14067 10167 13833 3/26/2008 14406 10079 14169 3/27/2008 14237 9965 14003 3/28/2008 14211 9887 13979 3/29/2008 14211 9887 13979 3/30/2008 14211 9887 13979 3/31/2008 14377 9943 14144 4/1/2008 14642 10300 14407 4/2/2008 14837 10282 14600 4/3/2008 14883 10296 14646 4/4/2008 15113 10304 14873 4/5/2008 15113 10304 14873 4/6/2008 15113 10304 14873 4/7/2008 15104 10320 14864 4/8/2008 15249 10271 15007 4/9/2008 15306 10189 15063 4/10/2008 15312 10235 15070 4/11/2008 15052 10027 14812 4/12/2008 15052 10027 14812 4/13/2008 15052 10027 14812 4/14/2008 15407 9993 15162 4/15/2008 15534 10039 15287 4/16/2008 16002 10268 15752 4/17/2008 15974 10275 15726 4/18/2008 16368 10461 16117 4/19/2008 16368 10461 16117 4/20/2008 16368 10461 16117 4/21/2008 16523 10445 16270 4/22/2008 16418 10353 16165 4/23/2008 16221 10383 15972 4/24/2008 15834 10450 15589 4/25/2008 16125 10518 15876 4/26/2008 16125 10518 15876 4/27/2008 16125 10518 15876 4/28/2008 16048 10508 15801 4/29/2008 15612 10467 15370 4/30/2008 15678 10427 15434 5/1/2008 15413 10608 15172 5/2/2008 15717 10642 15474 5/3/2008 15717 10642 15474 5/4/2008 15717 10642 15474 5/5/2008 15963 10595 15714 5/6/2008 16418 10677 16162 5/7/2008 16195 10488 15943 5/8/2008 16578 10527 16322 5/9/2008 16508 10458 16255 5/10/2008 16508 10458 16255 5/11/2008 16508 10458 16255 5/12/2008 16482 10573 16229 5/13/2008 16780 10572 16523 5/14/2008 16512 10616 16261 5/15/2008 16885 10730 16629 5/16/2008 17391 10744 17129 5/17/2008 17391 10744 17129 5/18/2008 17391 10744 17129 5/19/2008 17476 10754 17215 5/20/2008 17669 10654 17405 5/21/2008 17369 10484 17108 5/22/2008 17204 10513 16947 5/23/2008 16865 10375 16611 5/24/2008 16865 10375 16611 5/25/2008 16865 10375 16611 5/26/2008 16865 10375 16611 5/27/2008 16788 10446 16537 5/28/2008 17134 10489 16880 5/29/2008 16679 10546 16430 5/30/2008 16918 10562 16667 5/31/2008 16918 10562 16667 6/1/2008 16918 10562 16667 6/2/2008 17084 10452 16831 6/3/2008 16852 10392 16602 6/4/2008 16600 10393 16355 6/5/2008 17305 10597 17052 6/6/2008 17113 10271 16860 6/7/2008 17113 10271 16860 6/8/2008 17113 10271 16860 6/9/2008 17588 10279 17331 6/10/2008 17113 10254 16862 6/11/2008 17264 10083 17009 6/12/2008 16933 10117 16683 6/13/2008 17099 10269 16849 6/14/2008 17099 10269 16849 6/15/2008 17099 10269 16849 6/16/2008 17178 10270 16927 6/17/2008 17564 10201 17307 6/18/2008 17638 10102 17381 6/19/2008 17255 10143 17004 6/20/2008 17139 9955 16890 6/21/2008 17139 9955 16890 6/22/2008 17139 9955 16890 6/23/2008 17853 9955 17599 6/24/2008 17511 9927 17262 6/25/2008 17356 9986 17106 6/26/2008 17159 9695 16911 6/27/2008 17367 9660 17119 6/28/2008 17367 9660 17119 6/29/2008 17367 9660 17119 6/30/2008 17689 9672 17438 7/1/2008 17796 9711 17545 7/2/2008 17040 9535 16795 7/3/2008 16748 9545 16508 7/4/2008 16748 9545 16508 7/5/2008 16748 9545 16508 7/6/2008 16748 9545 16508 7/7/2008 16354 9465 16116 7/8/2008 16101 9631 15866 7/9/2008 15639 9412 15410 7/10/2008 16095 9478 15860 7/11/2008 16075 9374 15841 7/12/2008 16075 9374 15841 7/13/2008 16075 9374 15841 7/14/2008 16237 9289 16002 7/15/2008 15562 9188 15333 7/16/2008 15321 9420 15096 7/17/2008 14922 9533 14701 7/18/2008 15097 9536 14874 7/19/2008 15097 9536 14874 7/20/2008 15097 9536 14874 7/21/2008 15696 9531 15468 7/22/2008 15192 9660 14968 7/23/2008 14461 9699 14246 7/24/2008 14264 9475 14050 7/25/2008 14451 9515 14235 7/26/2008 14451 9515 14235 7/27/2008 14451 9515 14235 7/28/2008 14433 9338 14218 7/29/2008 14269 9557 14055 7/30/2008 15148 9716 14927 7/31/2008 14591 9591 14374 8/1/2008 14584 9537 14369 8/2/2008 14584 9537 14369 8/3/2008 14584 9537 14369 8/4/2008 13683 9452 13477 8/5/2008 13797 9724 13590 8/6/2008 14190 9761 13978 8/7/2008 13900 9587 13691 8/8/2008 13731 9816 13525 8/9/2008 13731 9816 13525 8/10/2008 13731 9816 13525 8/11/2008 13685 9887 13480 8/12/2008 13641 9768 13435 8/13/2008 14194 9743 13983 8/14/2008 13986 9797 13778 8/15/2008 13751 9838 13547 8/16/2008 13751 9838 13547 8/17/2008 13751 9838 13547 8/18/2008 13519 9690 13316 8/19/2008 13975 9601 13768 8/20/2008 14464 9661 14254 8/21/2008 14694 9686 14482 8/22/2008 14352 9797 14142 8/23/2008 14352 9797 14142 8/24/2008 14352 9797 14142 8/25/2008 14203 9604 13995 8/26/2008 14525 9640 14314 8/27/2008 14797 9718 14587 8/28/2008 14582 9864 14373 8/29/2008 14426 9729 14217 8/30/2008 14426 9729 14217 8/31/2008 14426 9729 14217 9/1/2008 14426 9729 14217 9/2/2008 13567 9690 13363 9/3/2008 13442 9675 13239 9/4/2008 13218 9386 13015 9/5/2008 13223 9428 13021 9/6/2008 13223 9428 13021 9/7/2008 13223 9428 13021 9/8/2008 13008 9623 12807 9/9/2008 11969 9294 11773 9/10/2008 12390 9352 12191 9/11/2008 12681 9484 12482 9/12/2008 13115 9504 12914 9/13/2008 13115 9504 12914 9/14/2008 13115 9504 12914 9/15/2008 11958 9056 11761 9/16/2008 12365 9215 12168 9/17/2008 12061 8781 11864 9/18/2008 12458 9164 12258 9/19/2008 13439 9533 13235 9/20/2008 13439 9533 13235 9/21/2008 13439 9533 13235 9/22/2008 13254 9169 13050 9/23/2008 12814 9026 12616 9/24/2008 12803 9008 12606 9/25/2008 13050 9185 12853 9/26/2008 12638 9216 12449 9/27/2008 12638 9216 12449 9/28/2008 12638 9216 12449 9/29/2008 11062 8407 10899 9/30/2008 11742 8862 11567 10/1/2008 11320 8824 11153 10/2/2008 10167 8469 10022 10/3/2008 10109 8355 9963 10/4/2008 10109 8355 9963 10/5/2008 10109 8355 9963 10/6/2008 9494 8034 9355 10/7/2008 8717 7573 8590 10/8/2008 8783 7491 8653 10/9/2008 7864 6920 7746 10/10/2008 7216 6840 7107 10/11/2008 7216 6840 7107 10/12/2008 7216 6840 7107 10/13/2008 8774 7632 8644 10/14/2008 8800 7591 8673 10/15/2008 7313 6906 7207 10/16/2008 7812 7200 7699 10/17/2008 7959 7155 7844 10/18/2008 7959 7155 7844 10/19/2008 7959 7155 7844 10/20/2008 8862 7496 8733 10/21/2008 8530 7265 8407 10/22/2008 7480 6824 7372 10/23/2008 7730 6910 7618 10/24/2008 7392 6672 7286 10/25/2008 7392 6672 7286 10/26/2008 7392 6672 7286 10/27/2008 6911 6460 6813 10/28/2008 7634 7157 7525 10/29/2008 8031 7078 7915 10/30/2008 8563 7262 8441 10/31/2008 8725 7374 8600
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT ENERGY ETF................................. -39.28% -7.71% S&P 500 EQUAL WEIGHT ENERGY TOTAL RETURN INDEX.................... -39.06% -7.28% S&P 500 TOTAL RETURN INDEX........................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 21 ANNUAL REPORT Rydex S&P Equal Weight Energy ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ SOUTHWESTERN ENERGY CO. 3.91% EXXON MOBIL CORP. 3.38% CHEVRON CORP. 3.21% NOBLE ENERGY, INC. 3.17% EOG RESOURCES, INC. 3.11% RANGE RESOURCES CORP. 3.03% WILLIAMS COS., INC. 3.00% DEVON ENERGY CORP. 2.93% SPECTRA ENERGY CORP. 2.79% OCCIDENTAL PETROLEUM CORP. 2.79% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Oil, Gas & Consumable Fuels 71.86 Energy Equipment & Services 28.14
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 22 RYDEX S&P EQUAL WEIGHT FINANCIALS ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ending October 31, 2008, Rydex S&P Equal Weight Financials ETF returned -52.88%. For the same period, its benchmark, the S&P Equal Weight Financials Total Return Index, returned -51.98% as compared to its cap-weighted peer index, the S&P 500 Equal Weight Financials Total Return Index, which delivered a -52.09% total return for the same time period. It's been a hard year for financials, which were already struggling before the massive credit crisis hit. Adding significantly to the losses in this sector was the insurance industry, the new pariah in the financials sector. That being said, the insurance industry was the biggest reason for the outperformance of the S&P 500 Equal Weight Financials Index. Despite having a larger allocation to insurance companies than its cap-weight counterpart, its broader diversification among companies in the industry allowed it to have less exposure to AIG in particular, which suffered a massive loss in value. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 RYDEX S&P S&P 500 EQUAL WEIGHT EQUAL WEIGHT TOTAL RETURN FINANCIALS TOTAL FINANCIALS ETF(A) INDEX(B) RETURN INDEX(C) ----------------- ------------ ---------------- 11/1/2006 10000 10000 9999 11/2/2006 9969 9999 9968 11/3/2006 9926 9978 9925 11/4/2006 9926 9978 9925 11/5/2006 9926 9978 9925 11/6/2006 10058 10091 10057 11/7/2006 10066 10114 10066 11/8/2006 10082 10137 10082 11/9/2006 10021 10085 10021 11/10/2006 10072 10104 10072 11/11/2006 10072 10104 10072 11/12/2006 10072 10104 10072 11/13/2006 10091 10132 10092 11/14/2006 10152 10198 10153 11/15/2006 10165 10225 10166 11/16/2006 10239 10249 10240 11/17/2006 10212 10259 10215 11/18/2006 10212 10259 10215 11/19/2006 10212 10259 10215 11/20/2006 10276 10254 10278 11/21/2006 10282 10272 10283 11/22/2006 10305 10297 10308 11/23/2006 10305 10297 10308 11/24/2006 10276 10260 10281 11/25/2006 10276 10260 10281 11/26/2006 10276 10260 10281 11/27/2006 10091 10120 10093 11/28/2006 10109 10158 10112 11/29/2006 10198 10256 10202 11/30/2006 10198 10264 10203 12/1/2006 10159 10236 10163 12/2/2006 10159 10236 10163 12/3/2006 10159 10236 10163 12/4/2006 10307 10327 10312 12/5/2006 10340 10368 10345 12/6/2006 10356 10357 10362 12/7/2006 10321 10317 10327 12/8/2006 10342 10336 10349 12/9/2006 10342 10336 10349 12/10/2006 10342 10336 10349 12/11/2006 10373 10359 10380 12/12/2006 10389 10349 10396 12/13/2006 10383 10363 10391 12/14/2006 10447 10453 10454 12/15/2006 10474 10465 10482 12/16/2006 10474 10465 10482 12/17/2006 10474 10465 10482 12/18/2006 10490 10431 10499 12/19/2006 10482 10454 10491 12/20/2006 10519 10440 10528 12/21/2006 10478 10404 10487 12/22/2006 10443 10350 10452 12/23/2006 10443 10350 10452 12/24/2006 10443 10350 10452 12/25/2006 10443 10350 10452 12/26/2006 10506 10395 10517 12/27/2006 10584 10470 10595 12/28/2006 10565 10455 10576 12/29/2006 10505 10408 10517 12/30/2006 10505 10408 10517 12/31/2006 10505 10408 10517 1/1/2007 10505 10408 10517 1/2/2007 10505 10408 10517 1/3/2007 10569 10398 10582 1/4/2007 10555 10411 10567 1/5/2007 10450 10347 10461 1/6/2007 10450 10347 10461 1/7/2007 10450 10347 10461 1/8/2007 10483 10373 10494 1/9/2007 10491 10368 10504 1/10/2007 10542 10389 10556 1/11/2007 10623 10455 10637 1/12/2007 10648 10506 10664 1/13/2007 10648 10506 10664 1/14/2007 10648 10506 10664 1/15/2007 10648 10506 10664 1/16/2007 10664 10515 10679 1/17/2007 10629 10506 10646 1/18/2007 10609 10475 10624 1/19/2007 10625 10506 10641 1/20/2007 10625 10506 10641 1/21/2007 10625 10506 10641 1/22/2007 10590 10451 10605 1/23/2007 10611 10488 10627 1/24/2007 10727 10577 10743 1/25/2007 10607 10458 10624 1/26/2007 10635 10445 10652 1/27/2007 10635 10445 10652 1/28/2007 10635 10445 10652 1/29/2007 10621 10435 10638 1/30/2007 10698 10495 10715 1/31/2007 10745 10566 10764 2/1/2007 10820 10625 10839 2/2/2007 10861 10643 10880 2/3/2007 10861 10643 10880 2/4/2007 10861 10643 10880 2/5/2007 10840 10634 10860 2/6/2007 10925 10641 10945 2/7/2007 10993 10660 11013 2/8/2007 10944 10648 10964 2/9/2007 10840 10573 10860 2/10/2007 10840 10573 10860 2/11/2007 10840 10573 10860 2/12/2007 10784 10539 10805 2/13/2007 10886 10621 10906 2/14/2007 10962 10705 10983 2/15/2007 10995 10717 11017 2/16/2007 11010 10708 11032 2/17/2007 11010 10708 11032 2/18/2007 11010 10708 11032 2/19/2007 11010 10708 11032 2/20/2007 11068 10739 11090 2/21/2007 11031 10724 11053 2/22/2007 11006 10717 11028 2/23/2007 10894 10680 10918 2/24/2007 10894 10680 10918 2/25/2007 10894 10680 10918 2/26/2007 10826 10668 10847 2/27/2007 10472 10299 10491 2/28/2007 10536 10359 10558 3/1/2007 10497 10332 10517 3/2/2007 10381 10215 10402 3/3/2007 10381 10215 10402 3/4/2007 10381 10215 10402 3/5/2007 10191 10119 10210 3/6/2007 10396 10276 10416 3/7/2007 10325 10254 10345 3/8/2007 10427 10327 10449 3/9/2007 10458 10334 10480 3/10/2007 10458 10334 10480 3/11/2007 10458 10334 10480 3/12/2007 10462 10362 10483 3/13/2007 10135 10154 10156 3/14/2007 10199 10223 10221 3/15/2007 10284 10261 10305 3/16/2007 10234 10222 10256 3/17/2007 10234 10222 10256 3/18/2007 10234 10222 10256 3/19/2007 10342 10333 10364 3/20/2007 10404 10399 10426 3/21/2007 10644 10577 10669 3/22/2007 10576 10573 10603 3/23/2007 10611 10584 10637 3/24/2007 10611 10584 10637 3/25/2007 10611 10584 10637 3/26/2007 10559 10595 10585 3/27/2007 10464 10529 10490 3/28/2007 10344 10448 10369 3/29/2007 10396 10487 10421 3/30/2007 10394 10475 10420 3/31/2007 10394 10475 10420 4/1/2007 10394 10475 10420 4/2/2007 10356 10502 10382 4/3/2007 10495 10602 10521 4/4/2007 10464 10614 10490 4/5/2007 10477 10649 10503 4/6/2007 10477 10649 10503 4/7/2007 10477 10649 10503 4/8/2007 10477 10649 10503 4/9/2007 10466 10655 10493 4/10/2007 10475 10684 10503 4/11/2007 10398 10615 10426 4/12/2007 10400 10681 10429 4/13/2007 10481 10718 10511 4/14/2007 10481 10718 10511 4/15/2007 10481 10718 10511 4/16/2007 10686 10833 10718 4/17/2007 10730 10855 10763 4/18/2007 10809 10863 10841 4/19/2007 10774 10850 10807 4/20/2007 10842 10951 10875 4/21/2007 10842 10951 10875 4/22/2007 10842 10951 10875 4/23/2007 10805 10926 10838 4/24/2007 10763 10922 10796 4/25/2007 10900 11034 10934 4/26/2007 10879 11026 10914 4/27/2007 10869 11025 10904 4/28/2007 10869 11025 10904 4/29/2007 10869 11025 10904 4/30/2007 10757 10939 10791 5/1/2007 10749 10968 10782 5/2/2007 10838 11040 10872 5/3/2007 10921 11091 10957 5/4/2007 10935 11115 10971 5/5/2007 10935 11115 10971 5/6/2007 10935 11115 10971 5/7/2007 10967 11144 11002 5/8/2007 10940 11132 10977 5/9/2007 11010 11171 11048 5/10/2007 10859 11017 10894 5/11/2007 10981 11124 11018 5/12/2007 10981 11124 11018 5/13/2007 10981 11124 11018 5/14/2007 10923 11105 10959 5/15/2007 10875 11091 10911 5/16/2007 10940 11190 10976 5/17/2007 10904 11181 10941 5/18/2007 10927 11255 10965 5/19/2007 10927 11255 10965 5/20/2007 10927 11255 10965 5/21/2007 10942 11272 10980 5/22/2007 10973 11265 11011 5/23/2007 10954 11252 10993 5/24/2007 10823 11144 10861 5/25/2007 10850 11205 10889 5/26/2007 10850 11205 10889 5/27/2007 10850 11205 10889 5/28/2007 10850 11205 10889 5/29/2007 10933 11224 10972 5/30/2007 11043 11318 11083 5/31/2007 11021 11321 11061 6/1/2007 11058 11363 11099 6/2/2007 11058 11363 11099 6/3/2007 11058 11363 11099 6/4/2007 11072 11384 11115 6/5/2007 10977 11324 11017 6/6/2007 10902 11226 10942 6/7/2007 10688 11030 10727 6/8/2007 10821 11155 10862 6/9/2007 10821 11155 10862 6/10/2007 10821 11155 10862 6/11/2007 10844 11166 10885 6/12/2007 10713 11047 10752 6/13/2007 10886 11217 10927 6/14/2007 10881 11272 10923 6/15/2007 10944 11345 10985 6/16/2007 10944 11345 10985 6/17/2007 10944 11345 10985 6/18/2007 10927 11332 10965 6/19/2007 10946 11352 10987 6/20/2007 10765 11197 10806 6/21/2007 10790 11269 10830 6/22/2007 10641 11124 10680 6/23/2007 10641 11124 10680 6/24/2007 10641 11124 10680 6/25/2007 10566 11088 10605 6/26/2007 10556 11053 10594 6/27/2007 10651 11154 10692 6/28/2007 10651 11150 10692 6/29/2007 10589 11133 10629 6/30/2007 10589 11133 10629 7/1/2007 10589 11133 10629 7/2/2007 10739 11252 10779 7/3/2007 10781 11294 10823 7/4/2007 10781 11294 10823 7/5/2007 10756 11298 10799 7/6/2007 10791 11339 10835 7/7/2007 10791 11339 10835 7/8/2007 10791 11339 10835 7/9/2007 10753 11349 10797 7/10/2007 10497 11188 10538 7/11/2007 10533 11254 10575 7/12/2007 10745 11468 10788 7/13/2007 10770 11504 10814 7/14/2007 10770 11504 10814 7/15/2007 10770 11504 10814 7/16/2007 10737 11482 10781 7/17/2007 10718 11481 10762 7/18/2007 10595 11458 10638 7/19/2007 10585 11510 10628 7/20/2007 10382 11369 10425 7/21/2007 10382 11369 10425 7/22/2007 10382 11369 10425 7/23/2007 10376 11425 10419 7/24/2007 10070 11199 10110 7/25/2007 10149 11251 10190 7/26/2007 9893 10988 9932 7/27/2007 9745 10814 9786 7/28/2007 9745 10814 9786 7/29/2007 9745 10814 9786 7/30/2007 9866 10925 9906 7/31/2007 9699 10787 9738 8/1/2007 9722 10866 9762 8/2/2007 9753 10916 9793 8/3/2007 9340 10627 9379 8/4/2007 9340 10627 9379 8/5/2007 9340 10627 9379 8/6/2007 9743 10884 9784 8/7/2007 9830 10951 9871 8/8/2007 10074 11109 10118 8/9/2007 9728 10781 9770 8/10/2007 9659 10786 9701 8/11/2007 9659 10786 9701 8/12/2007 9659 10786 9701 8/13/2007 9590 10782 9631 8/14/2007 9321 10587 9361 8/15/2007 9205 10443 9243 8/16/2007 9522 10477 9563 8/17/2007 9855 10735 9899 8/18/2007 9855 10735 9899 8/19/2007 9855 10735 9899 8/20/2007 9782 10732 9825 8/21/2007 9863 10744 9908 8/22/2007 9957 10870 10002 8/23/2007 9884 10858 9929 8/24/2007 9936 10985 9983 8/25/2007 9936 10985 9983 8/26/2007 9936 10985 9983 8/27/2007 9803 10892 9848 8/28/2007 9484 10636 9527 8/29/2007 9686 10872 9732 8/30/2007 9590 10827 9634 8/31/2007 9732 10949 9778 9/1/2007 9732 10949 9778 9/2/2007 9732 10949 9778 9/3/2007 9732 10949 9778 9/4/2007 9847 11064 9894 9/5/2007 9651 10942 9696 9/6/2007 9651 10990 9696 9/7/2007 9482 10804 9526 9/8/2007 9482 10804 9526 9/9/2007 9482 10804 9526 9/10/2007 9438 10791 9482 9/11/2007 9559 10938 9603 9/12/2007 9542 10942 9588 9/13/2007 9699 11034 9745 9/14/2007 9709 11037 9756 9/15/2007 9709 11037 9756 9/16/2007 9709 11037 9756 9/17/2007 9645 10980 9691 9/18/2007 10072 11301 10123 9/19/2007 10166 11370 10219 9/20/2007 9966 11296 10017 9/21/2007 9976 11348 10027 9/22/2007 9976 11348 10027 9/23/2007 9976 11348 10027 9/24/2007 9872 11289 9923 9/25/2007 9837 11285 9886 9/26/2007 9901 11348 9953 9/27/2007 9995 11393 10048 9/28/2007 9970 11359 10022 9/29/2007 9970 11359 10022 9/30/2007 9970 11359 10022 10/1/2007 10184 11510 10240 10/2/2007 10259 11507 10316 10/3/2007 10253 11457 10309 10/4/2007 10280 11481 10337 10/5/2007 10441 11594 10500 10/6/2007 10441 11594 10500 10/7/2007 10441 11594 10500 10/8/2007 10341 11557 10399 10/9/2007 10441 11650 10501 10/10/2007 10349 11631 10408 10/11/2007 10284 11572 10343 10/12/2007 10278 11627 10336 10/13/2007 10278 11627 10336 10/14/2007 10278 11627 10336 10/15/2007 10087 11530 10143 10/16/2007 9920 11454 9973 10/17/2007 9872 11475 9926 10/18/2007 9786 11467 9837 10/19/2007 9501 11173 9549 10/20/2007 9501 11173 9549 10/21/2007 9501 11173 9549 10/22/2007 9614 11216 9664 10/23/2007 9683 11315 9735 10/24/2007 9585 11287 9635 10/25/2007 9518 11276 9569 10/26/2007 9744 11432 9795 10/27/2007 9744 11432 9795 10/28/2007 9744 11432 9795 10/29/2007 9729 11476 9782 10/30/2007 9685 11402 9738 10/31/2007 9777 11539 9829 11/1/2007 9398 11237 9444 11/2/2007 9256 11247 9304 11/3/2007 9256 11247 9304 11/4/2007 9256 11247 9304 11/5/2007 9163 11192 9214 11/6/2007 9310 11327 9367 11/7/2007 8879 11000 8931 11/8/2007 8948 10994 8997 11/9/2007 8954 10837 9014 11/10/2007 8954 10837 9014 11/11/2007 8954 10837 9014 11/12/2007 8925 10729 8983 11/13/2007 9319 11045 9386 11/14/2007 9233 10970 9301 11/15/2007 9000 10825 9064 11/16/2007 8933 10882 8994 11/17/2007 8933 10882 8994 11/18/2007 8933 10882 8994 11/19/2007 8686 10692 8744 11/20/2007 8577 10741 8634 11/21/2007 8422 10571 8476 11/22/2007 8422 10571 8476 11/23/2007 8680 10750 8739 11/24/2007 8680 10750 8739 11/25/2007 8680 10750 8739 11/26/2007 8302 10500 8356 11/27/2007 8499 10658 8552 11/28/2007 8920 10966 8978 11/29/2007 8843 10972 8904 11/30/2007 9059 11057 9128 12/1/2007 9059 11057 9128 12/2/2007 9059 11057 9128 12/3/2007 8962 10992 9033 12/4/2007 8807 10920 8876 12/5/2007 8969 11092 9038 12/6/2007 9222 11260 9296 12/7/2007 9143 11240 9215 12/8/2007 9143 11240 9215 12/9/2007 9143 11240 9215 12/10/2007 9354 11325 9429 12/11/2007 8856 11039 8925 12/12/2007 8828 11107 8899 12/13/2007 8793 11121 8861 12/14/2007 8594 10969 8662 12/15/2007 8594 10969 8662 12/16/2007 8594 10969 8662 12/17/2007 8508 10804 8574 12/18/2007 8543 10872 8610 12/19/2007 8552 10857 8619 12/20/2007 8487 10914 8553 12/21/2007 8669 11097 8738 12/22/2007 8669 11097 8738 12/23/2007 8669 11097 8738 12/24/2007 8826 11187 8899 12/25/2007 8826 11187 8899 12/26/2007 8784 11196 8857 12/27/2007 8608 11040 8676 12/28/2007 8528 11056 8595 12/29/2007 8528 11056 8595 12/30/2007 8528 11056 8595 12/31/2007 8587 10980 8657 1/1/2008 8587 10980 8657 1/2/2008 8416 10824 8484 1/3/2008 8330 10824 8395 1/4/2008 8040 10558 8098 1/5/2008 8040 10558 8098 1/6/2008 8040 10558 8098 1/7/2008 8073 10592 8134 1/8/2008 7711 10401 7766 1/9/2008 7833 10544 7891 1/10/2008 8073 10628 8135 1/11/2008 8086 10484 8147 1/12/2008 8086 10484 8147 1/13/2008 8086 10484 8147 1/14/2008 8124 10598 8187 1/15/2008 7858 10334 7916 1/16/2008 7920 10277 7978 1/17/2008 7515 9979 7565 1/18/2008 7406 9918 7455 1/19/2008 7406 9918 7455 1/20/2008 7406 9918 7455 1/21/2008 7406 9918 7455 1/22/2008 7602 9809 7654 1/23/2008 8149 10019 8211 1/24/2008 8160 10120 8221 1/25/2008 8006 9960 8064 1/26/2008 8006 9960 8064 1/27/2008 8006 9960 8064 1/28/2008 8254 10135 8318 1/29/2008 8374 10198 8440 1/30/2008 8269 10150 8332 1/31/2008 8524 10322 8590 2/1/2008 8739 10448 8811 2/2/2008 8739 10448 8811 2/3/2008 8739 10448 8811 2/4/2008 8513 10339 8582 2/5/2008 8151 10009 8211 2/6/2008 8077 9937 8135 2/7/2008 8229 10017 8291 2/8/2008 8054 9975 8112 2/9/2008 8054 9975 8112 2/10/2008 8054 9975 8112 2/11/2008 7915 10035 7972 2/12/2008 8035 10108 8093 2/13/2008 8088 10249 8147 2/14/2008 7962 10112 8019 2/15/2008 8019 10121 8077 2/16/2008 8019 10121 8077 2/17/2008 8019 10121 8077 2/18/2008 8019 10121 8077 2/19/2008 7926 10113 7984 2/20/2008 8063 10198 8124 2/21/2008 7926 10070 7984 2/22/2008 8061 10151 8122 2/23/2008 8061 10151 8122 2/24/2008 8061 10151 8122 2/25/2008 8210 10291 8276 2/26/2008 8248 10362 8313 2/27/2008 8278 10355 8345 2/28/2008 8046 10264 8108 2/29/2008 7741 9986 7797 3/1/2008 7741 9986 7797 3/2/2008 7741 9986 7797 3/3/2008 7667 9992 7722 3/4/2008 7625 9957 7679 3/5/2008 7587 10015 7642 3/6/2008 7290 9796 7337 3/7/2008 7340 9713 7390 3/8/2008 7340 9713 7390 3/9/2008 7340 9713 7390 3/10/2008 7130 9564 7174 3/11/2008 7650 9919 7704 3/12/2008 7471 9833 7521 3/13/2008 7534 9883 7587 3/14/2008 7235 9678 7280 3/15/2008 7235 9678 7280 3/16/2008 7235 9678 7280 3/17/2008 7035 9593 7077 3/18/2008 7543 10000 7597 3/19/2008 7378 9757 7429 3/20/2008 7783 9991 7844 3/21/2008 7783 9991 7844 3/22/2008 7783 9991 7844 3/23/2008 7783 9991 7844 3/24/2008 7973 10144 8034 3/25/2008 7984 10167 8044 3/26/2008 7735 10079 7791 3/27/2008 7596 9965 7650 3/28/2008 7440 9887 7492 3/29/2008 7440 9887 7492 3/30/2008 7440 9887 7492 3/31/2008 7499 9943 7553 4/1/2008 7993 10300 8055 4/2/2008 7991 10282 8053 4/3/2008 8047 10296 8109 4/4/2008 7898 10304 7960 4/5/2008 7898 10304 7960 4/6/2008 7898 10304 7960 4/7/2008 8008 10320 8068 4/8/2008 7866 10271 7925 4/9/2008 7692 10189 7752 4/10/2008 7677 10235 7736 4/11/2008 7548 10027 7605 4/12/2008 7548 10027 7605 4/13/2008 7548 10027 7605 4/14/2008 7363 9993 7420 4/15/2008 7446 10039 7504 4/16/2008 7669 10268 7731 4/17/2008 7805 10275 7866 4/18/2008 7906 10461 7969 4/19/2008 7906 10461 7969 4/20/2008 7906 10461 7969 4/21/2008 7766 10445 7828 4/22/2008 7688 10353 7749 4/23/2008 7605 10383 7670 4/24/2008 7868 10450 7937 4/25/2008 7968 10518 8036 4/26/2008 7968 10518 8036 4/27/2008 7968 10518 8036 4/28/2008 7983 10508 8051 4/29/2008 7953 10467 8020 4/30/2008 7873 10427 7939 5/1/2008 8191 10608 8259 5/2/2008 8227 10642 8297 5/3/2008 8227 10642 8297 5/4/2008 8227 10642 8297 5/5/2008 8104 10595 8175 5/6/2008 8191 10677 8263 5/7/2008 7923 10488 7994 5/8/2008 7841 10527 7912 5/9/2008 7783 10458 7854 5/10/2008 7783 10458 7854 5/11/2008 7783 10458 7854 5/12/2008 7953 10573 8027 5/13/2008 7881 10572 7956 5/14/2008 7953 10616 8030 5/15/2008 8072 10730 8149 5/16/2008 7968 10744 8043 5/17/2008 7968 10744 8043 5/18/2008 7968 10744 8043 5/19/2008 7943 10754 8020 5/20/2008 7790 10654 7866 5/21/2008 7586 10484 7662 5/22/2008 7652 10513 7728 5/23/2008 7525 10375 7601 5/24/2008 7525 10375 7601 5/25/2008 7525 10375 7601 5/26/2008 7525 10375 7601 5/27/2008 7601 10446 7678 5/28/2008 7563 10489 7639 5/29/2008 7692 10546 7771 5/30/2008 7629 10562 7707 5/31/2008 7629 10562 7707 6/1/2008 7629 10562 7707 6/2/2008 7499 10452 7578 6/3/2008 7482 10392 7560 6/4/2008 7433 10393 7512 6/5/2008 7612 10597 7693 6/6/2008 7253 10271 7331 6/7/2008 7253 10271 7331 6/8/2008 7253 10271 7331 6/9/2008 7105 10279 7184 6/10/2008 7160 10254 7239 6/11/2008 6914 10083 6991 6/12/2008 7045 10117 7125 6/13/2008 7166 10269 7247 6/14/2008 7166 10269 7247 6/15/2008 7166 10269 7247 6/16/2008 7255 10270 7337 6/17/2008 7043 10201 7122 6/18/2008 6948 10102 7025 6/19/2008 7011 10143 7090 6/20/2008 6867 9955 6944 6/21/2008 6867 9955 6944 6/22/2008 6867 9955 6944 6/23/2008 6659 9955 6733 6/24/2008 6727 9927 6803 6/25/2008 6769 9986 6848 6/26/2008 6494 9695 6566 6/27/2008 6426 9660 6495 6/28/2008 6426 9660 6495 6/29/2008 6426 9660 6495 6/30/2008 6292 9672 6360 7/1/2008 6380 9711 6449 7/2/2008 6271 9535 6337 7/3/2008 6213 9545 6279 7/4/2008 6213 9545 6279 7/5/2008 6213 9545 6279 7/6/2008 6213 9545 6279 7/7/2008 6006 9465 6070 7/8/2008 6397 9631 6467 7/9/2008 6033 9412 6097 7/10/2008 5982 9478 6046 7/11/2008 5850 9374 5914 7/12/2008 5850 9374 5914 7/13/2008 5850 9374 5914 7/14/2008 5503 9289 5561 7/15/2008 5416 9188 5473 7/16/2008 5978 9420 6045 7/17/2008 6352 9533 6425 7/18/2008 6388 9536 6462 7/19/2008 6388 9536 6462 7/20/2008 6388 9536 6462 7/21/2008 6296 9531 6369 7/22/2008 6673 9660 6749 7/23/2008 6809 9699 6890 7/24/2008 6333 9475 6406 7/25/2008 6324 9515 6396 7/26/2008 6324 9515 6396 7/27/2008 6324 9515 6396 7/28/2008 6072 9338 6139 7/29/2008 6497 9557 6572 7/30/2008 6568 9716 6644 7/31/2008 6504 9591 6580 8/1/2008 6566 9537 6645 8/2/2008 6566 9537 6645 8/3/2008 6566 9537 6645 8/4/2008 6491 9452 6568 8/5/2008 6824 9724 6907 8/6/2008 6799 9761 6881 8/7/2008 6514 9587 6592 8/8/2008 6760 9816 6842 8/9/2008 6760 9816 6842 8/10/2008 6760 9816 6842 8/11/2008 6891 9887 6976 8/12/2008 6583 9768 6662 8/13/2008 6433 9743 6510 8/14/2008 6626 9797 6706 8/15/2008 6726 9838 6808 8/16/2008 6726 9838 6808 8/17/2008 6726 9838 6808 8/18/2008 6504 9690 6585 8/19/2008 6316 9601 6391 8/20/2008 6350 9661 6428 8/21/2008 6281 9686 6357 8/22/2008 6480 9797 6558 8/23/2008 6480 9797 6558 8/24/2008 6480 9797 6558 8/25/2008 6294 9604 6371 8/26/2008 6346 9640 6424 8/27/2008 6463 9718 6545 8/28/2008 6771 9864 6859 8/29/2008 6754 9729 6843 8/30/2008 6754 9729 6843 8/31/2008 6754 9729 6843 9/1/2008 6754 9729 6843 9/2/2008 6869 9690 6961 9/3/2008 6972 9675 7065 9/4/2008 6683 9386 6771 9/5/2008 6873 9428 6965 9/6/2008 6873 9428 6965 9/7/2008 6873 9428 6965 9/8/2008 7151 9623 7250 9/9/2008 6685 9294 6773 9/10/2008 6632 9352 6719 9/11/2008 6709 9484 6797 9/12/2008 6749 9504 6837 9/13/2008 6749 9504 6837 9/14/2008 6749 9504 6837 9/15/2008 6200 9056 6279 9/16/2008 6506 9215 6591 9/17/2008 5978 8781 6055 9/18/2008 6801 9164 6891 9/19/2008 7397 9533 7497 9/20/2008 7397 9533 7497 9/21/2008 7397 9533 7497 9/22/2008 6724 9169 6830 9/23/2008 6632 9026 6740 9/24/2008 6480 9008 6609 9/25/2008 6607 9185 6745 9/26/2008 6641 9216 6799 9/27/2008 6641 9216 6799 9/28/2008 6641 9216 6799 9/29/2008 5504 8407 5661 9/30/2008 6156 8862 6325 10/1/2008 6237 8824 6392 10/2/2008 5893 8469 6030 10/3/2008 5770 8355 5898 10/4/2008 5770 8355 5898 10/5/2008 5770 8355 5898 10/6/2008 5514 8034 5642 10/7/2008 4989 7573 5109 10/8/2008 4796 7491 4914 10/9/2008 4125 6920 4235 10/10/2008 4421 6840 4541 10/11/2008 4421 6840 4541 10/12/2008 4421 6840 4541 10/13/2008 4888 7632 5015 10/14/2008 5164 7591 5283 10/15/2008 4632 6906 4738 10/16/2008 4729 7200 4838 10/17/2008 4680 7155 4788 10/18/2008 4680 7155 4788 10/19/2008 4680 7155 4788 10/20/2008 4789 7496 4903 10/21/2008 4684 7265 4792 10/22/2008 4294 6824 4392 10/23/2008 4174 6910 4270 10/24/2008 4010 6672 4105 10/25/2008 4010 6672 4105 10/26/2008 4010 6672 4105 10/27/2008 3851 6460 3939 10/28/2008 4387 7157 4491 10/29/2008 4335 7078 4438 10/30/2008 4404 7262 4509 10/31/2008 4606 7374 4720
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT FINANCIALS ETF............................. -52.88% -32.13% S&P 500 EQUAL WEIGHT FINANCIALS TOTAL RETURN INDEX................ -51.98% -31.34% S&P 500 TOTAL RETURN INDEX........................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 23 ANNUAL REPORT Rydex S&P Equal Weight Financials ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ INTERCONTINENTAL EXCHANGE, INC. 1.96% BANK OF NEW YORK MELLON CORP. 1.74% JPMORGAN CHASE & CO. 1.73% HUDSON CITY BANCORP, INC. 1.64% WELLS FARGO & CO. 1.59% BB&T CORP. 1.59% KEYCORP. 1.58% AON CORP. 1.58% M&T BANK CORP. 1.58% MARSH & MCLENNAN COS., INC. 1.56% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Insurance 22.90 Commercial Banks 21.79 Capital Markets 19.39 Real Estate Investment Trusts (REITs) 14.62 Diversified Financial Services 12.94 Consumer Finance 5.25 Thrifts & Mortgage Finance 2.22 Real Estate Management & Development 0.89
* 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. 24 RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ending October 31, 2008, Rydex S&P Equal Weight Health Care ETF returned -26.98%. For the same period, its benchmark, the S&P Equal Weight Health Care Total Return Index, returned -25.75%. Rydex S&P Equal Weight Health Care ETF underperformed the cap-weighted S&P 500 Health Care Index by only about 3% for the year ending 10/31/08. Both Rydex S&P Equal Weight Health Care ETF and traditional cap-weighted strategies were bolstered by strong gains in biotechnology leaders and hurt by the health care providers and services industry, once of the hardest hit industries in the health care sector. Indeed, it was this equal weight exposure to the health care providers and services industry that was most responsible for the Rydex S&P Equal Weight Health Care ETF underperformance, while the cap- weighted S&P 500 Health Care Index was hurt most by pharmaceuticals. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT S&P 500 HEALTH CARE HEALTH CARE TOTAL RETURN TOTAL RETURN ETF(A) INDEX(B) INDEX(C) ------------ ------------ ------------ 11/1/2006 10000 10000 10002 11/2/2006 10053 9999 10053 11/3/2006 9994 9978 9995 11/4/2006 9994 9978 9995 11/5/2006 9994 9978 9995 11/6/2006 10121 10091 10123 11/7/2006 10190 10114 10193 11/8/2006 10045 10137 10053 11/9/2006 9865 10085 9872 11/10/2006 9919 10104 9931 11/11/2006 9919 10104 9931 11/12/2006 9919 10104 9931 11/13/2006 9935 10132 9945 11/14/2006 9994 10198 10005 11/15/2006 10036 10225 10047 11/16/2006 10095 10249 10106 11/17/2006 10083 10259 10095 11/18/2006 10083 10259 10095 11/19/2006 10083 10259 10095 11/20/2006 10047 10254 10057 11/21/2006 10038 10272 10050 11/22/2006 10105 10297 10116 11/23/2006 10105 10297 10116 11/24/2006 10055 10260 10068 11/25/2006 10055 10260 10068 11/26/2006 10055 10260 10068 11/27/2006 9978 10120 9989 11/28/2006 9994 10158 10006 11/29/2006 10059 10256 10071 11/30/2006 10111 10264 10123 12/1/2006 10103 10236 10116 12/2/2006 10103 10236 10116 12/3/2006 10103 10236 10116 12/4/2006 10210 10327 10225 12/5/2006 10247 10368 10261 12/6/2006 10281 10357 10295 12/7/2006 10257 10317 10271 12/8/2006 10267 10336 10280 12/9/2006 10267 10336 10280 12/10/2006 10267 10336 10280 12/11/2006 10293 10359 10307 12/12/2006 10299 10349 10314 12/13/2006 10267 10363 10282 12/14/2006 10303 10453 10319 12/15/2006 10328 10465 10342 12/16/2006 10328 10465 10342 12/17/2006 10328 10465 10342 12/18/2006 10313 10431 10329 12/19/2006 10350 10454 10365 12/20/2006 10366 10440 10382 12/21/2006 10364 10404 10381 12/22/2006 10305 10350 10323 12/23/2006 10305 10350 10323 12/24/2006 10305 10350 10323 12/25/2006 10305 10350 10323 12/26/2006 10319 10395 10337 12/27/2006 10349 10470 10367 12/28/2006 10345 10455 10363 12/29/2006 10309 10408 10326 12/30/2006 10309 10408 10326 12/31/2006 10309 10408 10326 1/1/2007 10309 10408 10326 1/2/2007 10309 10408 10326 1/3/2007 10293 10398 10312 1/4/2007 10360 10411 10378 1/5/2007 10313 10347 10332 1/6/2007 10313 10347 10332 1/7/2007 10313 10347 10332 1/8/2007 10362 10373 10380 1/9/2007 10352 10368 10370 1/10/2007 10380 10389 10398 1/11/2007 10503 10455 10523 1/12/2007 10544 10506 10564 1/13/2007 10544 10506 10564 1/14/2007 10544 10506 10564 1/15/2007 10544 10506 10564 1/16/2007 10582 10515 10603 1/17/2007 10643 10506 10664 1/18/2007 10641 10475 10662 1/19/2007 10659 10506 10681 1/20/2007 10659 10506 10681 1/21/2007 10659 10506 10681 1/22/2007 10598 10451 10620 1/23/2007 10600 10488 10622 1/24/2007 10675 10577 10698 1/25/2007 10637 10458 10659 1/26/2007 10621 10445 10642 1/27/2007 10621 10445 10642 1/28/2007 10621 10445 10642 1/29/2007 10641 10435 10664 1/30/2007 10730 10495 10752 1/31/2007 10782 10566 10805 2/1/2007 10861 10625 10885 2/2/2007 10857 10643 10880 2/3/2007 10857 10643 10880 2/4/2007 10857 10643 10880 2/5/2007 10861 10634 10886 2/6/2007 10853 10641 10877 2/7/2007 10871 10660 10896 2/8/2007 10879 10648 10903 2/9/2007 10835 10573 10859 2/10/2007 10835 10573 10859 2/11/2007 10835 10573 10859 2/12/2007 10817 10539 10841 2/13/2007 10851 10621 10876 2/14/2007 10922 10705 10947 2/15/2007 11009 10717 11035 2/16/2007 10981 10708 11007 2/17/2007 10981 10708 11007 2/18/2007 10981 10708 11007 2/19/2007 10981 10708 11007 2/20/2007 11013 10739 11039 2/21/2007 10997 10724 11023 2/22/2007 10975 10717 11002 2/23/2007 10952 10680 10980 2/24/2007 10952 10680 10980 2/25/2007 10952 10680 10980 2/26/2007 10924 10668 10951 2/27/2007 10610 10299 10636 2/28/2007 10651 10359 10677 3/1/2007 10580 10332 10606 3/2/2007 10463 10215 10489 3/3/2007 10463 10215 10489 3/4/2007 10463 10215 10489 3/5/2007 10376 10119 10402 3/6/2007 10497 10276 10525 3/7/2007 10467 10254 10494 3/8/2007 10534 10327 10562 3/9/2007 10548 10334 10576 3/10/2007 10548 10334 10576 3/11/2007 10548 10334 10576 3/12/2007 10578 10362 10606 3/13/2007 10410 10154 10439 3/14/2007 10481 10223 10509 3/15/2007 10515 10261 10544 3/16/2007 10504 10222 10533 3/17/2007 10504 10222 10533 3/18/2007 10504 10222 10533 3/19/2007 10616 10333 10655 3/20/2007 10642 10399 10680 3/21/2007 10755 10577 10808 3/22/2007 10792 10573 10834 3/23/2007 10796 10584 10839 3/24/2007 10796 10584 10839 3/25/2007 10796 10584 10839 3/26/2007 10794 10595 10837 3/27/2007 10741 10529 10784 3/28/2007 10690 10448 10734 3/29/2007 10707 10487 10750 3/30/2007 10743 10475 10786 3/31/2007 10743 10475 10786 4/1/2007 10743 10475 10786 4/2/2007 10777 10502 10822 4/3/2007 10911 10602 10955 4/4/2007 10941 10614 10986 4/5/2007 11020 10649 11067 4/6/2007 11020 10649 11067 4/7/2007 11020 10649 11067 4/8/2007 11020 10649 11067 4/9/2007 11022 10655 11069 4/10/2007 11057 10684 11104 4/11/2007 11045 10615 11091 4/12/2007 11168 10681 11216 4/13/2007 11243 10718 11291 4/14/2007 11243 10718 11291 4/15/2007 11243 10718 11291 4/16/2007 11346 10833 11395 4/17/2007 11366 10855 11416 4/18/2007 11354 10863 11403 4/19/2007 11383 10850 11432 4/20/2007 11449 10951 11501 4/21/2007 11449 10951 11501 4/22/2007 11449 10951 11501 4/23/2007 11536 10926 11588 4/24/2007 11571 10922 11624 4/25/2007 11603 11034 11655 4/26/2007 11589 11026 11641 4/27/2007 11557 11025 11608 4/28/2007 11557 11025 11608 4/29/2007 11557 11025 11608 4/30/2007 11490 10939 11542 5/1/2007 11547 10968 11600 5/2/2007 11630 11040 11683 5/3/2007 11646 11091 11699 5/4/2007 11690 11115 11744 5/5/2007 11690 11115 11744 5/6/2007 11690 11115 11744 5/7/2007 11729 11144 11784 5/8/2007 11696 11132 11750 5/9/2007 11729 11171 11783 5/10/2007 11565 11017 11620 5/11/2007 11623 11124 11679 5/12/2007 11623 11124 11679 5/13/2007 11623 11124 11679 5/14/2007 11579 11105 11634 5/15/2007 11581 11091 11636 5/16/2007 11704 11190 11760 5/17/2007 11642 11181 11698 5/18/2007 11694 11255 11750 5/19/2007 11694 11255 11750 5/20/2007 11694 11255 11750 5/21/2007 11680 11272 11737 5/22/2007 11686 11265 11743 5/23/2007 11704 11252 11761 5/24/2007 11676 11144 11733 5/25/2007 11717 11205 11774 5/26/2007 11717 11205 11774 5/27/2007 11717 11205 11774 5/28/2007 11717 11205 11774 5/29/2007 11715 11224 11772 5/30/2007 11721 11318 11779 5/31/2007 11737 11321 11795 6/1/2007 11781 11363 11841 6/2/2007 11781 11363 11841 6/3/2007 11781 11363 11841 6/4/2007 11797 11384 11857 6/5/2007 11743 11324 11802 6/6/2007 11660 11226 11720 6/7/2007 11500 11030 11558 6/8/2007 11583 11155 11642 6/9/2007 11583 11155 11642 6/10/2007 11583 11155 11642 6/11/2007 11587 11166 11646 6/12/2007 11500 11047 11559 6/13/2007 11597 11217 11657 6/14/2007 11603 11272 11663 6/15/2007 11657 11345 11718 6/16/2007 11657 11345 11718 6/17/2007 11657 11345 11718 6/18/2007 11623 11332 11686 6/19/2007 11647 11352 11708 6/20/2007 11507 11197 11567 6/21/2007 11534 11269 11595 6/22/2007 11384 11124 11444 6/23/2007 11384 11124 11444 6/24/2007 11384 11124 11444 6/25/2007 11352 11088 11412 6/26/2007 11406 11053 11466 6/27/2007 11483 11154 11544 6/28/2007 11479 11150 11541 6/29/2007 11441 11133 11502 6/30/2007 11441 11133 11502 7/1/2007 11441 11133 11502 7/2/2007 11554 11252 11617 7/3/2007 11580 11294 11643 7/4/2007 11580 11294 11643 7/5/2007 11601 11298 11665 7/6/2007 11637 11339 11701 7/7/2007 11637 11339 11701 7/8/2007 11637 11339 11701 7/9/2007 11595 11349 11658 7/10/2007 11489 11188 11554 7/11/2007 11580 11254 11644 7/12/2007 11734 11468 11799 7/13/2007 11702 11504 11767 7/14/2007 11702 11504 11767 7/15/2007 11702 11504 11767 7/16/2007 11686 11482 11751 7/17/2007 11651 11481 11717 7/18/2007 11653 11458 11720 7/19/2007 11607 11510 11672 7/20/2007 11489 11369 11555 7/21/2007 11489 11369 11555 7/22/2007 11489 11369 11555 7/23/2007 11560 11425 11627 7/24/2007 11453 11199 11518 7/25/2007 11461 11251 11528 7/26/2007 11238 10988 11302 7/27/2007 11050 10814 11115 7/28/2007 11050 10814 11115 7/29/2007 11050 10814 11115 7/30/2007 11139 10925 11204 7/31/2007 11032 10787 11095 8/1/2007 11096 10866 11161 8/2/2007 11220 10916 11286 8/3/2007 11048 10627 11112 8/4/2007 11048 10627 11112 8/5/2007 11048 10627 11112 8/6/2007 11271 10884 11338 8/7/2007 11232 10951 11298 8/8/2007 11271 11109 11336 8/9/2007 10989 10781 11053 8/10/2007 11068 10786 11134 8/11/2007 11068 10786 11134 8/12/2007 11068 10786 11134 8/13/2007 11101 10782 11166 8/14/2007 10973 10587 11037 8/15/2007 10868 10443 10933 8/16/2007 10809 10477 10873 8/17/2007 10957 10735 11023 8/18/2007 10957 10735 11023 8/19/2007 10957 10735 11023 8/20/2007 10961 10732 11029 8/21/2007 10983 10744 11050 8/22/2007 11086 10870 11154 8/23/2007 11105 10858 11173 8/24/2007 11194 10985 11263 8/25/2007 11194 10985 11263 8/26/2007 11194 10985 11263 8/27/2007 11135 10892 11203 8/28/2007 10961 10636 11029 8/29/2007 11096 10872 11166 8/30/2007 11086 10827 11155 8/31/2007 11145 10949 11215 9/1/2007 11145 10949 11215 9/2/2007 11145 10949 11215 9/3/2007 11145 10949 11215 9/4/2007 11240 11064 11311 9/5/2007 11198 10942 11269 9/6/2007 11293 10990 11363 9/7/2007 11151 10804 11222 9/8/2007 11151 10804 11222 9/9/2007 11151 10804 11222 9/10/2007 11149 10791 11219 9/11/2007 11273 10938 11345 9/12/2007 11303 10942 11375 9/13/2007 11321 11034 11392 9/14/2007 11307 11037 11379 9/15/2007 11307 11037 11379 9/16/2007 11307 11037 11379 9/17/2007 11226 10980 11298 9/18/2007 11431 11301 11505 9/19/2007 11505 11370 11581 9/20/2007 11439 11296 11513 9/21/2007 11480 11348 11555 9/22/2007 11480 11348 11555 9/23/2007 11480 11348 11555 9/24/2007 11450 11289 11527 9/25/2007 11458 11285 11535 9/26/2007 11555 11348 11633 9/27/2007 11571 11393 11649 9/28/2007 11555 11359 11633 9/29/2007 11555 11359 11633 9/30/2007 11555 11359 11633 10/1/2007 11648 11510 11727 10/2/2007 11604 11507 11684 10/3/2007 11608 11457 11687 10/4/2007 11626 11481 11706 10/5/2007 11725 11594 11806 10/6/2007 11725 11594 11806 10/7/2007 11725 11594 11806 10/8/2007 11685 11557 11767 10/9/2007 11754 11650 11837 10/10/2007 11764 11631 11845 10/11/2007 11654 11572 11736 10/12/2007 11717 11627 11801 10/13/2007 11717 11627 11801 10/14/2007 11717 11627 11801 10/15/2007 11656 11530 11740 10/16/2007 11581 11454 11665 10/17/2007 11602 11475 11686 10/18/2007 11598 11467 11681 10/19/2007 11438 11173 11520 10/20/2007 11438 11173 11520 10/21/2007 11438 11173 11520 10/22/2007 11432 11216 11513 10/23/2007 11581 11315 11665 10/24/2007 11502 11287 11586 10/25/2007 11547 11276 11631 10/26/2007 11561 11432 11645 10/27/2007 11561 11432 11645 10/28/2007 11561 11432 11645 10/29/2007 11583 11476 11667 10/30/2007 11594 11402 11678 10/31/2007 11737 11539 11822 11/1/2007 11553 11237 11625 11/2/2007 11555 11247 11623 11/3/2007 11555 11247 11623 11/4/2007 11555 11247 11623 11/5/2007 11525 11192 11594 11/6/2007 11575 11327 11689 11/7/2007 11324 11000 11437 11/8/2007 11450 10994 11571 11/9/2007 11342 10837 11465 11/10/2007 11342 10837 11465 11/11/2007 11342 10837 11465 11/12/2007 11330 10729 11471 11/13/2007 11472 11045 11613 11/14/2007 11425 10970 11568 11/15/2007 11389 10825 11529 11/16/2007 11440 10882 11584 11/17/2007 11440 10882 11584 11/18/2007 11440 10882 11584 11/19/2007 11336 10692 11472 11/20/2007 11387 10741 11507 11/21/2007 11162 10571 11281 11/22/2007 11162 10571 11281 11/23/2007 11316 10750 11434 11/24/2007 11316 10750 11434 11/25/2007 11316 10750 11434 11/26/2007 11195 10500 11316 11/27/2007 11425 10658 11572 11/28/2007 11622 10966 11798 11/29/2007 11632 10972 11818 11/30/2007 11687 11057 11900 12/1/2007 11687 11057 11900 12/2/2007 11687 11057 11900 12/3/2007 11602 10992 11813 12/4/2007 11557 10920 11767 12/5/2007 11679 11092 11892 12/6/2007 11760 11260 11973 12/7/2007 11756 11240 11969 12/8/2007 11756 11240 11969 12/9/2007 11756 11240 11969 12/10/2007 11782 11325 11996 12/11/2007 11553 11039 11764 12/12/2007 11590 11107 11802 12/13/2007 11549 11121 11759 12/14/2007 11464 10969 11674 12/15/2007 11464 10969 11674 12/16/2007 11464 10969 11674 12/17/2007 11300 10804 11508 12/18/2007 11365 10872 11573 12/19/2007 11334 10857 11543 12/20/2007 11423 10914 11634 12/21/2007 11574 11097 11787 12/22/2007 11574 11097 11787 12/23/2007 11574 11097 11787 12/24/2007 11608 11187 11825 12/25/2007 11608 11187 11825 12/26/2007 11628 11196 11845 12/27/2007 11499 11040 11714 12/28/2007 11515 11056 11730 12/29/2007 11515 11056 11730 12/30/2007 11515 11056 11730 12/31/2007 11424 10980 11637 1/1/2008 11424 10980 11637 1/2/2008 11316 10824 11528 1/3/2008 11375 10824 11588 1/4/2008 11235 10558 11446 1/5/2008 11235 10558 11446 1/6/2008 11235 10558 11446 1/7/2008 11485 10592 11700 1/8/2008 11527 10401 11744 1/9/2008 11720 10544 11940 1/10/2008 11744 10628 11965 1/11/2008 11750 10484 11971 1/12/2008 11750 10484 11971 1/13/2008 11750 10484 11971 1/14/2008 11734 10598 11954 1/15/2008 11556 10334 11773 1/16/2008 11693 10277 11914 1/17/2008 11521 9979 11738 1/18/2008 11335 9918 11549 1/19/2008 11335 9918 11549 1/20/2008 11335 9918 11549 1/21/2008 11335 9918 11549 1/22/2008 10988 9809 11196 1/23/2008 10899 10019 11105 1/24/2008 10919 10120 11128 1/25/2008 10826 9960 11033 1/26/2008 10826 9960 11033 1/27/2008 10826 9960 11033 1/28/2008 10960 10135 11168 1/29/2008 11073 10198 11285 1/30/2008 10996 10150 11205 1/31/2008 11120 10322 11331 2/1/2008 11231 10448 11446 2/2/2008 11231 10448 11446 2/3/2008 11231 10448 11446 2/4/2008 11254 10339 11468 2/5/2008 11039 10009 11250 2/6/2008 11039 9937 11249 2/7/2008 11071 10017 11283 2/8/2008 10990 9975 11200 2/9/2008 10990 9975 11200 2/10/2008 10990 9975 11200 2/11/2008 10990 10035 11200 2/12/2008 11095 10108 11308 2/13/2008 11136 10249 11350 2/14/2008 11020 10112 11232 2/15/2008 11055 10121 11267 2/16/2008 11055 10121 11267 2/17/2008 11055 10121 11267 2/18/2008 11055 10121 11267 2/19/2008 11114 10113 11327 2/20/2008 11132 10198 11347 2/21/2008 10970 10070 11181 2/22/2008 10990 10151 11202 2/23/2008 10990 10151 11202 2/24/2008 10990 10151 11202 2/25/2008 11166 10291 11383 2/26/2008 11227 10362 11445 2/27/2008 11166 10355 11383 2/28/2008 11085 10264 11299 2/29/2008 10877 9986 11087 3/1/2008 10877 9986 11087 3/2/2008 10877 9986 11087 3/3/2008 10883 9992 11093 3/4/2008 10891 9957 11101 3/5/2008 10895 10015 11106 3/6/2008 10643 9796 10850 3/7/2008 10530 9713 10734 3/8/2008 10530 9713 10734 3/9/2008 10530 9713 10734 3/10/2008 10376 9564 10578 3/11/2008 10366 9919 10567 3/12/2008 10350 9833 10551 3/13/2008 10394 9883 10597 3/14/2008 10224 9678 10424 3/15/2008 10224 9678 10424 3/16/2008 10224 9678 10424 3/17/2008 10121 9593 10317 3/18/2008 10372 10000 10575 3/19/2008 10329 9757 10531 3/20/2008 10413 9991 10618 3/21/2008 10413 9991 10618 3/22/2008 10413 9991 10618 3/23/2008 10413 9991 10618 3/24/2008 10535 10144 10744 3/25/2008 10555 10167 10764 3/26/2008 10501 10079 10709 3/27/2008 10490 9965 10699 3/28/2008 10434 9887 10641 3/29/2008 10434 9887 10641 3/30/2008 10434 9887 10641 3/31/2008 10419 9943 10628 4/1/2008 10740 10300 10955 4/2/2008 10653 10282 10866 4/3/2008 10626 10296 10840 4/4/2008 10716 10304 10931 4/5/2008 10716 10304 10931 4/6/2008 10716 10304 10931 4/7/2008 10710 10320 10925 4/8/2008 10693 10271 10909 4/9/2008 10618 10189 10832 4/10/2008 10669 10235 10884 4/11/2008 10497 10027 10708 4/12/2008 10497 10027 10708 4/13/2008 10497 10027 10708 4/14/2008 10474 9993 10686 4/15/2008 10415 10039 10627 4/16/2008 10529 10268 10742 4/17/2008 10490 10275 10703 4/18/2008 10616 10461 10831 4/19/2008 10616 10461 10831 4/20/2008 10616 10461 10831 4/21/2008 10592 10445 10807 4/22/2008 10438 10353 10649 4/23/2008 10622 10383 10839 4/24/2008 10590 10450 10806 4/25/2008 10762 10518 10982 4/26/2008 10762 10518 10982 4/27/2008 10762 10518 10982 4/28/2008 10827 10508 11047 4/29/2008 10799 10467 11019 4/30/2008 10746 10427 10966 5/1/2008 10914 10608 11138 5/2/2008 10862 10642 11084 5/3/2008 10862 10642 11084 5/4/2008 10862 10642 11084 5/5/2008 10847 10595 11069 5/6/2008 10856 10677 11079 5/7/2008 10689 10488 10910 5/8/2008 10699 10527 10920 5/9/2008 10630 10458 10851 5/10/2008 10630 10458 10851 5/11/2008 10630 10458 10851 5/12/2008 10679 10573 10900 5/13/2008 10602 10572 10820 5/14/2008 10673 10616 10893 5/15/2008 10673 10730 10895 5/16/2008 10693 10744 10916 5/17/2008 10693 10744 10916 5/18/2008 10693 10744 10916 5/19/2008 10718 10754 10939 5/20/2008 10726 10654 10948 5/21/2008 10659 10484 10881 5/22/2008 10785 10513 11009 5/23/2008 10667 10375 10889 5/24/2008 10667 10375 10889 5/25/2008 10667 10375 10889 5/26/2008 10667 10375 10889 5/27/2008 10772 10446 10997 5/28/2008 10764 10489 10988 5/29/2008 10892 10546 11120 5/30/2008 10912 10562 11140 5/31/2008 10912 10562 11140 6/1/2008 10912 10562 11140 6/2/2008 10791 10452 11017 6/3/2008 10811 10392 11038 6/4/2008 10882 10393 11111 6/5/2008 10989 10597 11221 6/6/2008 10703 10271 10930 6/7/2008 10703 10271 10930 6/8/2008 10703 10271 10930 6/9/2008 10620 10279 10845 6/10/2008 10559 10254 10783 6/11/2008 10401 10083 10622 6/12/2008 10492 10117 10716 6/13/2008 10634 10269 10859 6/14/2008 10634 10269 10859 6/15/2008 10634 10269 10859 6/16/2008 10602 10270 10826 6/17/2008 10541 10201 10764 6/18/2008 10430 10102 10649 6/19/2008 10432 10143 10651 6/20/2008 10271 9955 10486 6/21/2008 10271 9955 10486 6/22/2008 10271 9955 10486 6/23/2008 10277 9955 10494 6/24/2008 10273 9927 10489 6/25/2008 10405 9986 10625 6/26/2008 10194 9695 10409 6/27/2008 10279 9660 10496 6/28/2008 10279 9660 10496 6/29/2008 10279 9660 10496 6/30/2008 10336 9672 10555 7/1/2008 10342 9711 10561 7/2/2008 10326 9535 10544 7/3/2008 10271 9545 10488 7/4/2008 10271 9545 10488 7/5/2008 10271 9545 10488 7/6/2008 10271 9545 10488 7/7/2008 10241 9465 10458 7/8/2008 10525 9631 10749 7/9/2008 10466 9412 10689 7/10/2008 10488 9478 10711 7/11/2008 10373 9374 10594 7/12/2008 10373 9374 10594 7/13/2008 10373 9374 10594 7/14/2008 10358 9289 10579 7/15/2008 10460 9188 10682 7/16/2008 10553 9420 10778 7/17/2008 10709 9533 10939 7/18/2008 10726 9536 10955 7/19/2008 10726 9536 10955 7/20/2008 10726 9536 10955 7/21/2008 10644 9531 10873 7/22/2008 10847 9660 11080 7/23/2008 10975 9699 11211 7/24/2008 10945 9475 11180 7/25/2008 11000 9515 11236 7/26/2008 11000 9515 11236 7/27/2008 11000 9515 11236 7/28/2008 10878 9338 11112 7/29/2008 10955 9557 11190 7/30/2008 10971 9716 11207 7/31/2008 11014 9591 11254 8/1/2008 10882 9537 11120 8/2/2008 10882 9537 11120 8/3/2008 10882 9537 11120 8/4/2008 10989 9452 11230 8/5/2008 11255 9724 11502 8/6/2008 11265 9761 11513 8/7/2008 11097 9587 11341 8/8/2008 11365 9816 11615 8/9/2008 11365 9816 11615 8/10/2008 11365 9816 11615 8/11/2008 11399 9887 11651 8/12/2008 11357 9768 11607 8/13/2008 11324 9743 11573 8/14/2008 11393 9797 11646 8/15/2008 11519 9838 11775 8/16/2008 11519 9838 11775 8/17/2008 11519 9838 11775 8/18/2008 11408 9690 11660 8/19/2008 11324 9601 11576 8/20/2008 11251 9661 11501 8/21/2008 11280 9686 11531 8/22/2008 11399 9797 11653 8/23/2008 11399 9797 11653 8/24/2008 11399 9797 11653 8/25/2008 11188 9604 11436 8/26/2008 11201 9640 11450 8/27/2008 11192 9718 11441 8/28/2008 11296 9864 11547 8/29/2008 11184 9729 11434 8/30/2008 11184 9729 11434 8/31/2008 11184 9729 11434 9/1/2008 11184 9729 11434 9/2/2008 11192 9690 11443 9/3/2008 11192 9675 11443 9/4/2008 10914 9386 11159 9/5/2008 10853 9428 11097 9/6/2008 10853 9428 11097 9/7/2008 10853 9428 11097 9/8/2008 11050 9623 11298 9/9/2008 10856 9294 11100 9/10/2008 10888 9352 11133 9/11/2008 11030 9484 11279 9/12/2008 11024 9504 11273 9/13/2008 11024 9504 11273 9/14/2008 11024 9504 11273 9/15/2008 10782 9056 11026 9/16/2008 10758 9215 11001 9/17/2008 10385 8781 10619 9/18/2008 10640 9164 10881 9/19/2008 10727 9533 10970 9/20/2008 10727 9533 10970 9/21/2008 10727 9533 10970 9/22/2008 10457 9169 10694 9/23/2008 10412 9026 10650 9/24/2008 10451 9008 10691 9/25/2008 10586 9185 10828 9/26/2008 10603 9216 10846 9/27/2008 10603 9216 10846 9/28/2008 10603 9216 10846 9/29/2008 9978 8407 10207 9/30/2008 10317 8862 10554 10/1/2008 10272 8824 10509 10/2/2008 10024 8469 10257 10/3/2008 9931 8355 10162 10/4/2008 9931 8355 10162 10/5/2008 9931 8355 10162 10/6/2008 9354 8034 9572 10/7/2008 9088 7573 9300 10/8/2008 8938 7491 9144 10/9/2008 8345 6920 8538 10/10/2008 8050 6840 8237 10/11/2008 8050 6840 8237 10/12/2008 8050 6840 8237 10/13/2008 9080 7632 9292 10/14/2008 9066 7591 9276 10/15/2008 8377 6906 8571 10/16/2008 8633 7200 8833 10/17/2008 8639 7155 8840 10/18/2008 8639 7155 8840 10/19/2008 8639 7155 8840 10/20/2008 8962 7496 9172 10/21/2008 8812 7265 9019 10/22/2008 8290 6824 8489 10/23/2008 8288 6910 8487 10/24/2008 8060 6672 8254 10/25/2008 8060 6672 8254 10/26/2008 8060 6672 8254 10/27/2008 7695 6460 7880 10/28/2008 8227 7157 8424 10/29/2008 8115 7078 8310 10/30/2008 8402 7262 8604 10/31/2008 8572 7374 8778
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF.................... -26.98% -7.42% S&P 500 EQUAL WEIGHT HEALTH CARE TOTAL RETURN INDEX....... -25.75% -6.32% S&P 500 TOTAL RETURN INDEX................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 25 ANNUAL REPORT Rydex S&P Equal Weight Health Care ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ DAVITA, INC. 2.37% CELGENE CORP. 2.34% AMGEN, INC. 2.34% PFIZER, INC. 2.30% BRISTOL-MYERS SQUIBB CO. 2.30% BARR PHARMACEUTICALS, INC. 2.28% GILEAD SCIENCES, INC. 2.27% MERCK & CO., INC. 2.27% WATSON PHARMACEUTICALS, INC. 2.22% ABBOTT LABORATORIES 2.22% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Pharmaceuticals 28.46 Health Care Providers & Services 27.87 Health Care Equipment & Supplies 21.91 Biotechnology 11.19 Life Sciences Tools & Services 8.92 Health Care Technology 1.65
* 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. 26 RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P Equal Weight Industrials ETF returned -37.12% compared to its benchmark S&P Equal Weight Industrials Total Return Index and the capitalization-weighted S&P Industrials Index, which returned -36.96% and -38.56% respectively for the same time period. Both the equal weight industrials index and its cap-weighted counterpart benefited most from the road and rail industry. While machinery was the largest detractor of returns for the S&P Equal Weight Industrial Index, the cap-weighted industrials index was hurt most by industrial conglomerates. Indeed, the equal weight industrials index's significant underweighting to industrial conglomerates was most responsible for its outperformance. As an example, General Electric (GE) had an approximate 24% average weighting in the capitalization-weighted industrials index versus a 1.75% average weighting in the equal weight industrials index. Due in large part to the credit crisis, General Electric (GE) was down 50.61% for the year ending 10/31/2008. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 RYDEX S&P S&P 500 EQUAL WEIGHT EQUAL WEIGHT TOTAL RETURN INDUSTRIALS TOTAL INDUSTRIALS ETF(A) INDEX(B) RETURN INDEX(C) ------------------ ------------ ----------------- 11/1/2006 10000.00 10000.00 9999.00 11/2/2006 9990.00 9999.00 9988.00 11/3/2006 9955.00 9978.00 9955.00 11/4/2006 9955.00 9978.00 9955.00 11/5/2006 9955.00 9978.00 9955.00 11/6/2006 10057.00 10091.00 10056.00 11/7/2006 10142.00 10114.00 10142.00 11/8/2006 10201.00 10137.00 10201.00 11/9/2006 10116.00 10085.00 10116.00 11/10/2006 10179.00 10104.00 10179.00 11/11/2006 10179.00 10104.00 10179.00 11/12/2006 10179.00 10104.00 10179.00 11/13/2006 10236.00 10132.00 10236.00 11/14/2006 10277.00 10198.00 10276.00 11/15/2006 10368.00 10225.00 10370.00 11/16/2006 10419.00 10249.00 10420.00 11/17/2006 10393.00 10259.00 10395.00 11/18/2006 10393.00 10259.00 10395.00 11/19/2006 10393.00 10259.00 10395.00 11/20/2006 10348.00 10254.00 10350.00 11/21/2006 10427.00 10272.00 10429.00 11/22/2006 10442.00 10297.00 10443.00 11/23/2006 10442.00 10297.00 10443.00 11/24/2006 10419.00 10260.00 10422.00 11/25/2006 10419.00 10260.00 10422.00 11/26/2006 10419.00 10260.00 10422.00 11/27/2006 10248.00 10120.00 10250.00 11/28/2006 10232.00 10158.00 10234.00 11/29/2006 10336.00 10256.00 10339.00 11/30/2006 10360.00 10264.00 10364.00 12/1/2006 10293.00 10236.00 10296.00 12/2/2006 10293.00 10236.00 10296.00 12/3/2006 10293.00 10236.00 10296.00 12/4/2006 10442.00 10327.00 10446.00 12/5/2006 10484.00 10368.00 10489.00 12/6/2006 10492.00 10357.00 10497.00 12/7/2006 10474.00 10317.00 10478.00 12/8/2006 10476.00 10336.00 10482.00 12/9/2006 10476.00 10336.00 10482.00 12/10/2006 10476.00 10336.00 10482.00 12/11/2006 10444.00 10359.00 10449.00 12/12/2006 10403.00 10349.00 10408.00 12/13/2006 10372.00 10363.00 10377.00 12/14/2006 10474.00 10453.00 10479.00 12/15/2006 10411.00 10465.00 10417.00 12/16/2006 10411.00 10465.00 10417.00 12/17/2006 10411.00 10465.00 10417.00 12/18/2006 10366.00 10431.00 10372.00 12/19/2006 10403.00 10454.00 10407.00 12/20/2006 10409.00 10440.00 10414.00 12/21/2006 10370.00 10404.00 10377.00 12/22/2006 10293.00 10350.00 10300.00 12/23/2006 10293.00 10350.00 10300.00 12/24/2006 10293.00 10350.00 10300.00 12/25/2006 10293.00 10350.00 10300.00 12/26/2006 10338.00 10395.00 10343.00 12/27/2006 10427.00 10470.00 10433.00 12/28/2006 10402.00 10455.00 10409.00 12/29/2006 10335.00 10408.00 10342.00 12/30/2006 10335.00 10408.00 10342.00 12/31/2006 10335.00 10408.00 10342.00 1/1/2007 10335.00 10408.00 10342.00 1/2/2007 10335.00 10408.00 10342.00 1/3/2007 10341.00 10398.00 10349.00 1/4/2007 10323.00 10411.00 10330.00 1/5/2007 10258.00 10347.00 10265.00 1/6/2007 10258.00 10347.00 10265.00 1/7/2007 10258.00 10347.00 10265.00 1/8/2007 10313.00 10373.00 10320.00 1/9/2007 10335.00 10368.00 10342.00 1/10/2007 10357.00 10389.00 10366.00 1/11/2007 10447.00 10455.00 10456.00 1/12/2007 10500.00 10506.00 10510.00 1/13/2007 10500.00 10506.00 10510.00 1/14/2007 10500.00 10506.00 10510.00 1/15/2007 10500.00 10506.00 10510.00 1/16/2007 10568.00 10515.00 10578.00 1/17/2007 10580.00 10506.00 10589.00 1/18/2007 10541.00 10475.00 10551.00 1/19/2007 10578.00 10506.00 10588.00 1/20/2007 10578.00 10506.00 10588.00 1/21/2007 10578.00 10506.00 10588.00 1/22/2007 10468.00 10451.00 10477.00 1/23/2007 10625.00 10488.00 10635.00 1/24/2007 10625.00 10577.00 10635.00 1/25/2007 10502.00 10458.00 10514.00 1/26/2007 10468.00 10445.00 10480.00 1/27/2007 10468.00 10445.00 10480.00 1/28/2007 10468.00 10445.00 10480.00 1/29/2007 10500.00 10435.00 10511.00 1/30/2007 10560.00 10495.00 10571.00 1/31/2007 10713.00 10566.00 10725.00 2/1/2007 10866.00 10625.00 10877.00 2/2/2007 10902.00 10643.00 10915.00 2/3/2007 10902.00 10643.00 10915.00 2/4/2007 10902.00 10643.00 10915.00 2/5/2007 10884.00 10634.00 10897.00 2/6/2007 10892.00 10641.00 10904.00 2/7/2007 10923.00 10660.00 10936.00 2/8/2007 10862.00 10648.00 10875.00 2/9/2007 10786.00 10573.00 10799.00 2/10/2007 10786.00 10573.00 10799.00 2/11/2007 10786.00 10573.00 10799.00 2/12/2007 10804.00 10539.00 10818.00 2/13/2007 10906.00 10621.00 10921.00 2/14/2007 11068.00 10705.00 11082.00 2/15/2007 11096.00 10717.00 11112.00 2/16/2007 11076.00 10708.00 11091.00 2/17/2007 11076.00 10708.00 11091.00 2/18/2007 11076.00 10708.00 11091.00 2/19/2007 11076.00 10708.00 11091.00 2/20/2007 11131.00 10739.00 11147.00 2/21/2007 11155.00 10724.00 11172.00 2/22/2007 11119.00 10717.00 11134.00 2/23/2007 11102.00 10680.00 11118.00 2/24/2007 11102.00 10680.00 11118.00 2/25/2007 11102.00 10680.00 11118.00 2/26/2007 11019.00 10668.00 11036.00 2/27/2007 10643.00 10299.00 10658.00 2/28/2007 10678.00 10359.00 10693.00 3/1/2007 10645.00 10332.00 10661.00 3/2/2007 10498.00 10215.00 10514.00 3/3/2007 10498.00 10215.00 10514.00 3/4/2007 10498.00 10215.00 10514.00 3/5/2007 10429.00 10119.00 10444.00 3/6/2007 10564.00 10276.00 10580.00 3/7/2007 10584.00 10254.00 10601.00 3/8/2007 10680.00 10327.00 10697.00 3/9/2007 10696.00 10334.00 10712.00 3/10/2007 10696.00 10334.00 10712.00 3/11/2007 10696.00 10334.00 10712.00 3/12/2007 10743.00 10362.00 10760.00 3/13/2007 10508.00 10154.00 10526.00 3/14/2007 10574.00 10223.00 10591.00 3/15/2007 10606.00 10261.00 10624.00 3/16/2007 10636.00 10222.00 10654.00 3/17/2007 10636.00 10222.00 10654.00 3/18/2007 10636.00 10222.00 10654.00 3/19/2007 10756.00 10333.00 10776.00 3/20/2007 10791.00 10399.00 10812.00 3/21/2007 10924.00 10577.00 10944.00 3/22/2007 10891.00 10573.00 10912.00 3/23/2007 10965.00 10584.00 10987.00 3/24/2007 10965.00 10584.00 10987.00 3/25/2007 10965.00 10584.00 10987.00 3/26/2007 10891.00 10595.00 10913.00 3/27/2007 10791.00 10529.00 10812.00 3/28/2007 10679.00 10448.00 10701.00 3/29/2007 10709.00 10487.00 10731.00 3/30/2007 10720.00 10475.00 10741.00 3/31/2007 10720.00 10475.00 10741.00 4/1/2007 10720.00 10475.00 10741.00 4/2/2007 10734.00 10502.00 10757.00 4/3/2007 10840.00 10602.00 10863.00 4/4/2007 10799.00 10614.00 10822.00 4/5/2007 10797.00 10649.00 10821.00 4/6/2007 10797.00 10649.00 10821.00 4/7/2007 10797.00 10649.00 10821.00 4/8/2007 10797.00 10649.00 10821.00 4/9/2007 10838.00 10655.00 10863.00 4/10/2007 10836.00 10684.00 10859.00 4/11/2007 10765.00 10615.00 10789.00 4/12/2007 10885.00 10681.00 10910.00 4/13/2007 10900.00 10718.00 10923.00 4/14/2007 10900.00 10718.00 10923.00 4/15/2007 10900.00 10718.00 10923.00 4/16/2007 11018.00 10833.00 11044.00 4/17/2007 11039.00 10855.00 11065.00 4/18/2007 11088.00 10863.00 11114.00 4/19/2007 11110.00 10850.00 11136.00 4/20/2007 11219.00 10951.00 11245.00 4/21/2007 11219.00 10951.00 11245.00 4/22/2007 11219.00 10951.00 11245.00 4/23/2007 11276.00 10926.00 11303.00 4/24/2007 11246.00 10922.00 11273.00 4/25/2007 11340.00 11034.00 11367.00 4/26/2007 11305.00 11026.00 11333.00 4/27/2007 11417.00 11025.00 11446.00 4/28/2007 11417.00 11025.00 11446.00 4/29/2007 11417.00 11025.00 11446.00 4/30/2007 11264.00 10939.00 11293.00 5/1/2007 11321.00 10968.00 11351.00 5/2/2007 11436.00 11040.00 11466.00 5/3/2007 11524.00 11091.00 11554.00 5/4/2007 11544.00 11115.00 11575.00 5/5/2007 11544.00 11115.00 11575.00 5/6/2007 11544.00 11115.00 11575.00 5/7/2007 11565.00 11144.00 11596.00 5/8/2007 11571.00 11132.00 11602.00 5/9/2007 11655.00 11171.00 11686.00 5/10/2007 11507.00 11017.00 11539.00 5/11/2007 11608.00 11124.00 11639.00 5/12/2007 11608.00 11124.00 11639.00 5/13/2007 11608.00 11124.00 11639.00 5/14/2007 11583.00 11105.00 11615.00 5/15/2007 11579.00 11091.00 11610.00 5/16/2007 11647.00 11190.00 11680.00 5/17/2007 11647.00 11181.00 11679.00 5/18/2007 11675.00 11255.00 11709.00 5/19/2007 11675.00 11255.00 11709.00 5/20/2007 11675.00 11255.00 11709.00 5/21/2007 11698.00 11272.00 11731.00 5/22/2007 11665.00 11265.00 11699.00 5/23/2007 11663.00 11252.00 11698.00 5/24/2007 11571.00 11144.00 11604.00 5/25/2007 11657.00 11205.00 11692.00 5/26/2007 11657.00 11205.00 11692.00 5/27/2007 11657.00 11205.00 11692.00 5/28/2007 11657.00 11205.00 11692.00 5/29/2007 11700.00 11224.00 11734.00 5/30/2007 11818.00 11318.00 11854.00 5/31/2007 11908.00 11321.00 11946.00 6/1/2007 11951.00 11363.00 11986.00 6/2/2007 11951.00 11363.00 11986.00 6/3/2007 11951.00 11363.00 11986.00 6/4/2007 11966.00 11384.00 12001.00 6/5/2007 11958.00 11324.00 11994.00 6/6/2007 11810.00 11226.00 11846.00 6/7/2007 11595.00 11030.00 11630.00 6/8/2007 11759.00 11155.00 11794.00 6/9/2007 11759.00 11155.00 11794.00 6/10/2007 11759.00 11155.00 11794.00 6/11/2007 11775.00 11166.00 11811.00 6/12/2007 11663.00 11047.00 11698.00 6/13/2007 11911.00 11217.00 11947.00 6/14/2007 11994.00 11272.00 12032.00 6/15/2007 12059.00 11345.00 12099.00 6/16/2007 12059.00 11345.00 12099.00 6/17/2007 12059.00 11345.00 12099.00 6/18/2007 12012.00 11332.00 12050.00 6/19/2007 12075.00 11352.00 12114.00 6/20/2007 11977.00 11197.00 12016.00 6/21/2007 12051.00 11269.00 12090.00 6/22/2007 11940.00 11124.00 11979.00 6/23/2007 11940.00 11124.00 11979.00 6/24/2007 11940.00 11124.00 11979.00 6/25/2007 11891.00 11088.00 11931.00 6/26/2007 11832.00 11053.00 11871.00 6/27/2007 11901.00 11154.00 11941.00 6/28/2007 11914.00 11150.00 11952.00 6/29/2007 11922.00 11133.00 11962.00 6/30/2007 11922.00 11133.00 11962.00 7/1/2007 11922.00 11133.00 11962.00 7/2/2007 11899.00 11252.00 12132.00 7/3/2007 12113.00 11294.00 12154.00 7/4/2007 12113.00 11294.00 12154.00 7/5/2007 12123.00 11298.00 12165.00 7/6/2007 12184.00 11339.00 12227.00 7/7/2007 12184.00 11339.00 12227.00 7/8/2007 12184.00 11339.00 12227.00 7/9/2007 12285.00 11349.00 12328.00 7/10/2007 12082.00 11188.00 12125.00 7/11/2007 12197.00 11254.00 12240.00 7/12/2007 12400.00 11468.00 12444.00 7/13/2007 12453.00 11504.00 12499.00 7/14/2007 12453.00 11504.00 12499.00 7/15/2007 12453.00 11504.00 12499.00 7/16/2007 12476.00 11482.00 12522.00 7/17/2007 12541.00 11481.00 12587.00 7/18/2007 12533.00 11458.00 12579.00 7/19/2007 12613.00 11510.00 12661.00 7/20/2007 12408.00 11369.00 12454.00 7/21/2007 12408.00 11369.00 12454.00 7/22/2007 12408.00 11369.00 12454.00 7/23/2007 12461.00 11425.00 12509.00 7/24/2007 12215.00 11199.00 12261.00 7/25/2007 12174.00 11251.00 12220.00 7/26/2007 11912.00 10988.00 11957.00 7/27/2007 11764.00 10814.00 11810.00 7/28/2007 11764.00 10814.00 11810.00 7/29/2007 11764.00 10814.00 11810.00 7/30/2007 11979.00 10925.00 12025.00 7/31/2007 11846.00 10787.00 11892.00 8/1/2007 11932.00 10866.00 11978.00 8/2/2007 12047.00 10916.00 12094.00 8/3/2007 11737.00 10627.00 11781.00 8/4/2007 11737.00 10627.00 11781.00 8/5/2007 11737.00 10627.00 11781.00 8/6/2007 11903.00 10884.00 11950.00 8/7/2007 11877.00 10951.00 11922.00 8/8/2007 11875.00 11109.00 11921.00 8/9/2007 11497.00 10781.00 11541.00 8/10/2007 11600.00 10786.00 11643.00 8/11/2007 11600.00 10786.00 11643.00 8/12/2007 11600.00 10786.00 11643.00 8/13/2007 11713.00 10782.00 11758.00 8/14/2007 11434.00 10587.00 11475.00 8/15/2007 11173.00 10443.00 11209.00 8/16/2007 11067.00 10477.00 11103.00 8/17/2007 11315.00 10735.00 11352.00 8/18/2007 11315.00 10735.00 11352.00 8/19/2007 11315.00 10735.00 11352.00 8/20/2007 11456.00 10732.00 11497.00 8/21/2007 11442.00 10744.00 11483.00 8/22/2007 11688.00 10870.00 11733.00 8/23/2007 11561.00 10858.00 11606.00 8/24/2007 11748.00 10985.00 11794.00 8/25/2007 11748.00 10985.00 11794.00 8/26/2007 11748.00 10985.00 11794.00 8/27/2007 11700.00 10892.00 11745.00 8/28/2007 11360.00 10636.00 11403.00 8/29/2007 11649.00 10872.00 11694.00 8/30/2007 11608.00 10827.00 11652.00 8/31/2007 11793.00 10949.00 11839.00 9/1/2007 11793.00 10949.00 11839.00 9/2/2007 11793.00 10949.00 11839.00 9/3/2007 11793.00 10949.00 11839.00 9/4/2007 11883.00 11064.00 11931.00 9/5/2007 11725.00 10942.00 11773.00 9/6/2007 11807.00 10990.00 11855.00 9/7/2007 11538.00 10804.00 11584.00 9/8/2007 11538.00 10804.00 11584.00 9/9/2007 11538.00 10804.00 11584.00 9/10/2007 11471.00 10791.00 11516.00 9/11/2007 11614.00 10938.00 11660.00 9/12/2007 11592.00 10942.00 11638.00 9/13/2007 11653.00 11034.00 11701.00 9/14/2007 11680.00 11037.00 11729.00 9/15/2007 11680.00 11037.00 11729.00 9/16/2007 11680.00 11037.00 11729.00 9/17/2007 11616.00 10980.00 11664.00 9/18/2007 12024.00 11301.00 12076.00 9/19/2007 12092.00 11370.00 12143.00 9/20/2007 12002.00 11296.00 12053.00 9/21/2007 12071.00 11348.00 12124.00 9/22/2007 12071.00 11348.00 12124.00 9/23/2007 12071.00 11348.00 12124.00 9/24/2007 11975.00 11289.00 12026.00 9/25/2007 12034.00 11285.00 12087.00 9/26/2007 12106.00 11348.00 12160.00 9/27/2007 12174.00 11393.00 12227.00 9/28/2007 12147.00 11359.00 12201.00 9/29/2007 12147.00 11359.00 12201.00 9/30/2007 12147.00 11359.00 12201.00 10/1/2007 12347.00 11510.00 12402.00 10/2/2007 12299.00 11507.00 12355.00 10/3/2007 12180.00 11457.00 12236.00 10/4/2007 12221.00 11481.00 12277.00 10/5/2007 12425.00 11594.00 12482.00 10/6/2007 12425.00 11594.00 12482.00 10/7/2007 12425.00 11594.00 12482.00 10/8/2007 12386.00 11557.00 12444.00 10/9/2007 12488.00 11650.00 12546.00 10/10/2007 12359.00 11631.00 12417.00 10/11/2007 12279.00 11572.00 12335.00 10/12/2007 12351.00 11627.00 12410.00 10/13/2007 12351.00 11627.00 12410.00 10/14/2007 12351.00 11627.00 12410.00 10/15/2007 12234.00 11530.00 12292.00 10/16/2007 12153.00 11454.00 12211.00 10/17/2007 12182.00 11475.00 12239.00 10/18/2007 12252.00 11467.00 12309.00 10/19/2007 11878.00 11173.00 11934.00 10/20/2007 11878.00 11173.00 11934.00 10/21/2007 11878.00 11173.00 11934.00 10/22/2007 11962.00 11216.00 12020.00 10/23/2007 12116.00 11315.00 12176.00 10/24/2007 12160.00 11287.00 12218.00 10/25/2007 12071.00 11276.00 12131.00 10/26/2007 12090.00 11432.00 12149.00 10/27/2007 12090.00 11432.00 12149.00 10/28/2007 12090.00 11432.00 12149.00 10/29/2007 12145.00 11476.00 12205.00 10/30/2007 12044.00 11402.00 12105.00 10/31/2007 12201.00 11539.00 12252.00 11/1/2007 11938.00 11237.00 11983.00 11/2/2007 12028.00 11247.00 12080.00 11/3/2007 12028.00 11247.00 12080.00 11/4/2007 12028.00 11247.00 12080.00 11/5/2007 12016.00 11192.00 12066.00 11/6/2007 12227.00 11327.00 12278.00 11/7/2007 11890.00 11000.00 11942.00 11/8/2007 11966.00 10994.00 12018.00 11/9/2007 11707.00 10837.00 11757.00 11/10/2007 11707.00 10837.00 11757.00 11/11/2007 11707.00 10837.00 11757.00 11/12/2007 11541.00 10729.00 11592.00 11/13/2007 11833.00 11045.00 11884.00 11/14/2007 11790.00 10970.00 11822.00 11/15/2007 11633.00 10825.00 11670.00 11/16/2007 11570.00 10882.00 11610.00 11/17/2007 11570.00 10882.00 11610.00 11/18/2007 11570.00 10882.00 11610.00 11/19/2007 11335.00 10692.00 11378.00 11/20/2007 11366.00 10741.00 11409.00 11/21/2007 11208.00 10571.00 11238.00 11/22/2007 11208.00 10571.00 11238.00 11/23/2007 11399.00 10750.00 11433.00 11/24/2007 11399.00 10750.00 11433.00 11/25/2007 11399.00 10750.00 11433.00 11/26/2007 11233.00 10500.00 11261.00 11/27/2007 11424.00 10658.00 11456.00 11/28/2007 11775.00 10966.00 11801.00 11/29/2007 11705.00 10972.00 11735.00 11/30/2007 11825.00 11057.00 11857.00 12/1/2007 11825.00 11057.00 11857.00 12/2/2007 11825.00 11057.00 11857.00 12/3/2007 11761.00 10992.00 11790.00 12/4/2007 11749.00 10920.00 11779.00 12/5/2007 11962.00 11092.00 11996.00 12/6/2007 12186.00 11260.00 12222.00 12/7/2007 12240.00 11240.00 12276.00 12/8/2007 12240.00 11240.00 12276.00 12/9/2007 12240.00 11240.00 12276.00 12/10/2007 12310.00 11325.00 12347.00 12/11/2007 11915.00 11039.00 11948.00 12/12/2007 12032.00 11107.00 12070.00 12/13/2007 12102.00 11121.00 12140.00 12/14/2007 11934.00 10969.00 11971.00 12/15/2007 11934.00 10969.00 11971.00 12/16/2007 11934.00 10969.00 11971.00 12/17/2007 11695.00 10804.00 11730.00 12/18/2007 11765.00 10872.00 11800.00 12/19/2007 11720.00 10857.00 11755.00 12/20/2007 11831.00 10914.00 11867.00 12/21/2007 12378.00 11097.00 12086.00 12/22/2007 12378.00 11097.00 12086.00 12/23/2007 12378.00 11097.00 12086.00 12/24/2007 12499.00 11187.00 12211.00 12/25/2007 12499.00 11187.00 12211.00 12/26/2007 12491.00 11196.00 12202.00 12/27/2007 12335.00 11040.00 12039.00 12/28/2007 12355.00 11056.00 12061.00 12/29/2007 12355.00 11056.00 12061.00 12/30/2007 12355.00 11056.00 12061.00 12/31/2007 12267.00 10980.00 11970.00 1/1/2008 12267.00 10980.00 11970.00 1/2/2008 11985.00 10824.00 11694.00 1/3/2008 12007.00 10824.00 11714.00 1/4/2008 11649.00 10558.00 11364.00 1/5/2008 11649.00 10558.00 11364.00 1/6/2008 11649.00 10558.00 11364.00 1/7/2008 11544.00 10592.00 11261.00 1/8/2008 11231.00 10401.00 10956.00 1/9/2008 11299.00 10544.00 11022.00 1/10/2008 11456.00 10628.00 11175.00 1/11/2008 11212.00 10484.00 10935.00 1/12/2008 11212.00 10484.00 10935.00 1/13/2008 11212.00 10484.00 10935.00 1/14/2008 11415.00 10598.00 11134.00 1/15/2008 11135.00 10334.00 10862.00 1/16/2008 11083.00 10277.00 10810.00 1/17/2008 10672.00 9979.00 10407.00 1/18/2008 10709.00 9918.00 10445.00 1/19/2008 10709.00 9918.00 10445.00 1/20/2008 10709.00 9918.00 10445.00 1/21/2008 10709.00 9918.00 10445.00 1/22/2008 10711.00 9809.00 10449.00 1/23/2008 11061.00 10019.00 10791.00 1/24/2008 11098.00 10120.00 10828.00 1/25/2008 11091.00 9960.00 10822.00 1/26/2008 11091.00 9960.00 10822.00 1/27/2008 11091.00 9960.00 10822.00 1/28/2008 11222.00 10135.00 10950.00 1/29/2008 11336.00 10198.00 11062.00 1/30/2008 11378.00 10150.00 11103.00 1/31/2008 11559.00 10322.00 11280.00 2/1/2008 11751.00 10448.00 11470.00 2/2/2008 11751.00 10448.00 11470.00 2/3/2008 11751.00 10448.00 11470.00 2/4/2008 11675.00 10339.00 11394.00 2/5/2008 11325.00 10009.00 11052.00 2/6/2008 11292.00 9937.00 11020.00 2/7/2008 11327.00 10017.00 11056.00 2/8/2008 11271.00 9975.00 10999.00 2/9/2008 11271.00 9975.00 10999.00 2/10/2008 11271.00 9975.00 10999.00 2/11/2008 11371.00 10035.00 11099.00 2/12/2008 11395.00 10108.00 11123.00 2/13/2008 11635.00 10249.00 11357.00 2/14/2008 11480.00 10112.00 11205.00 2/15/2008 11432.00 10121.00 11160.00 2/16/2008 11432.00 10121.00 11160.00 2/17/2008 11432.00 10121.00 11160.00 2/18/2008 11432.00 10121.00 11160.00 2/19/2008 11439.00 10113.00 11165.00 2/20/2008 11546.00 10198.00 11271.00 2/21/2008 11415.00 10070.00 11143.00 2/22/2008 11511.00 10151.00 11237.00 2/23/2008 11511.00 10151.00 11237.00 2/24/2008 11511.00 10151.00 11237.00 2/25/2008 11708.00 10291.00 11431.00 2/26/2008 11795.00 10362.00 11516.00 2/27/2008 11775.00 10355.00 11497.00 2/28/2008 11692.00 10264.00 11415.00 2/29/2008 11367.00 9986.00 11097.00 3/1/2008 11367.00 9986.00 11097.00 3/2/2008 11367.00 9986.00 11097.00 3/3/2008 11445.00 9992.00 11174.00 3/4/2008 11373.00 9957.00 11103.00 3/5/2008 11489.00 10015.00 11218.00 3/6/2008 11260.00 9796.00 10992.00 3/7/2008 11113.00 9713.00 10848.00 3/8/2008 11113.00 9713.00 10848.00 3/9/2008 11113.00 9713.00 10848.00 3/10/2008 10893.00 9564.00 10633.00 3/11/2008 11288.00 9919.00 11020.00 3/12/2008 11271.00 9833.00 11002.00 3/13/2008 11343.00 9883.00 11075.00 3/14/2008 11146.00 9678.00 10882.00 3/15/2008 11146.00 9678.00 10882.00 3/16/2008 11146.00 9678.00 10882.00 3/17/2008 11056.00 9593.00 10793.00 3/18/2008 11504.00 10000.00 11233.00 3/19/2008 11168.00 9757.00 10904.00 3/20/2008 11292.00 9991.00 11026.00 3/21/2008 11292.00 9991.00 11026.00 3/22/2008 11292.00 9991.00 11026.00 3/23/2008 11292.00 9991.00 11026.00 3/24/2008 11565.00 10144.00 11295.00 3/25/2008 11692.00 10167.00 11418.00 3/26/2008 11574.00 10079.00 11304.00 3/27/2008 11430.00 9965.00 11162.00 3/28/2008 11406.00 9887.00 11139.00 3/29/2008 11406.00 9887.00 11139.00 3/30/2008 11406.00 9887.00 11139.00 3/31/2008 11467.00 9943.00 11200.00 4/1/2008 11878.00 10300.00 11604.00 4/2/2008 11902.00 10282.00 11628.00 4/3/2008 11896.00 10296.00 11620.00 4/4/2008 11986.00 10304.00 11708.00 4/5/2008 11986.00 10304.00 11708.00 4/6/2008 11986.00 10304.00 11708.00 4/7/2008 11953.00 10320.00 11677.00 4/8/2008 11896.00 10271.00 11621.00 4/9/2008 11749.00 10189.00 11479.00 4/10/2008 11815.00 10235.00 11541.00 4/11/2008 11557.00 10027.00 11289.00 4/12/2008 11557.00 10027.00 11289.00 4/13/2008 11557.00 10027.00 11289.00 4/14/2008 11581.00 9993.00 11313.00 4/15/2008 11605.00 10039.00 11338.00 4/16/2008 11972.00 10268.00 11699.00 4/17/2008 11883.00 10275.00 11610.00 4/18/2008 12231.00 10461.00 11953.00 4/19/2008 12231.00 10461.00 11953.00 4/20/2008 12231.00 10461.00 11953.00 4/21/2008 12172.00 10445.00 11893.00 4/22/2008 12010.00 10353.00 11736.00 4/23/2008 11994.00 10383.00 11719.00 4/24/2008 12115.00 10450.00 11840.00 4/25/2008 12233.00 10518.00 11954.00 4/26/2008 12233.00 10518.00 11954.00 4/27/2008 12233.00 10518.00 11954.00 4/28/2008 12277.00 10508.00 11997.00 4/29/2008 12246.00 10467.00 11969.00 4/30/2008 12211.00 10427.00 11933.00 5/1/2008 12443.00 10608.00 12162.00 5/2/2008 12493.00 10642.00 12211.00 5/3/2008 12493.00 10642.00 12211.00 5/4/2008 12493.00 10642.00 12211.00 5/5/2008 12423.00 10595.00 12143.00 5/6/2008 12550.00 10677.00 12267.00 5/7/2008 12329.00 10488.00 12050.00 5/8/2008 12423.00 10527.00 12143.00 5/9/2008 12342.00 10458.00 12065.00 5/10/2008 12342.00 10458.00 12065.00 5/11/2008 12342.00 10458.00 12065.00 5/12/2008 12544.00 10573.00 12262.00 5/13/2008 12679.00 10572.00 12395.00 5/14/2008 12721.00 10616.00 12435.00 5/15/2008 12815.00 10730.00 12527.00 5/16/2008 12793.00 10744.00 12507.00 5/17/2008 12793.00 10744.00 12507.00 5/18/2008 12793.00 10744.00 12507.00 5/19/2008 12811.00 10754.00 12525.00 5/20/2008 12697.00 10654.00 12412.00 5/21/2008 12493.00 10484.00 12213.00 5/22/2008 12454.00 10513.00 12175.00 5/23/2008 12303.00 10375.00 12027.00 5/24/2008 12303.00 10375.00 12027.00 5/25/2008 12303.00 10375.00 12027.00 5/26/2008 12303.00 10375.00 12027.00 5/27/2008 12419.00 10446.00 12141.00 5/28/2008 12542.00 10489.00 12263.00 5/29/2008 12620.00 10546.00 12341.00 5/30/2008 12719.00 10562.00 12438.00 5/31/2008 12719.00 10562.00 12438.00 6/1/2008 12719.00 10562.00 12438.00 6/2/2008 12572.00 10452.00 12293.00 6/3/2008 12485.00 10392.00 12206.00 6/4/2008 12485.00 10393.00 12207.00 6/5/2008 12623.00 10597.00 12343.00 6/6/2008 12156.00 10271.00 11885.00 6/7/2008 12156.00 10271.00 11885.00 6/8/2008 12156.00 10271.00 11885.00 6/9/2008 12183.00 10279.00 11911.00 6/10/2008 12141.00 10254.00 11871.00 6/11/2008 11821.00 10083.00 11557.00 6/12/2008 11951.00 10117.00 11684.00 6/13/2008 12180.00 10269.00 11911.00 6/14/2008 12180.00 10269.00 11911.00 6/15/2008 12180.00 10269.00 11911.00 6/16/2008 12134.00 10270.00 11865.00 6/17/2008 12016.00 10201.00 11749.00 6/18/2008 11916.00 10102.00 11649.00 6/19/2008 12091.00 10143.00 11821.00 6/20/2008 11857.00 9955.00 11591.00 6/21/2008 11857.00 9955.00 11591.00 6/22/2008 11857.00 9955.00 11591.00 6/23/2008 11844.00 9955.00 11580.00 6/24/2008 11678.00 9927.00 11416.00 6/25/2008 11627.00 9986.00 11366.00 6/26/2008 11196.00 9695.00 10942.00 6/27/2008 11148.00 9660.00 10895.00 6/28/2008 11148.00 9660.00 10895.00 6/29/2008 11148.00 9660.00 10895.00 6/30/2008 11198.00 9672.00 10944.00 7/1/2008 11178.00 9711.00 10925.00 7/2/2008 10794.00 9535.00 10548.00 7/3/2008 10868.00 9545.00 10622.00 7/4/2008 10868.00 9545.00 10622.00 7/5/2008 10868.00 9545.00 10622.00 7/6/2008 10868.00 9545.00 10622.00 7/7/2008 10857.00 9465.00 10612.00 7/8/2008 11095.00 9631.00 10845.00 7/9/2008 10827.00 9412.00 10582.00 7/10/2008 10954.00 9478.00 10708.00 7/11/2008 10794.00 9374.00 10550.00 7/12/2008 10794.00 9374.00 10550.00 7/13/2008 10794.00 9374.00 10550.00 7/14/2008 10761.00 9289.00 10519.00 7/15/2008 10587.00 9188.00 10348.00 7/16/2008 10945.00 9420.00 10699.00 7/17/2008 11126.00 9533.00 10877.00 7/18/2008 11115.00 9536.00 10866.00 7/19/2008 11115.00 9536.00 10866.00 7/20/2008 11115.00 9536.00 10866.00 7/21/2008 11132.00 9531.00 10883.00 7/22/2008 11324.00 9660.00 11071.00 7/23/2008 11350.00 9699.00 11097.00 7/24/2008 11047.00 9475.00 10800.00 7/25/2008 11148.00 9515.00 10899.00 7/26/2008 11148.00 9515.00 10899.00 7/27/2008 11148.00 9515.00 10899.00 7/28/2008 10941.00 9338.00 10697.00 7/29/2008 11244.00 9557.00 10994.00 7/30/2008 11392.00 9716.00 11140.00 7/31/2008 11174.00 9591.00 10926.00 8/1/2008 11108.00 9537.00 10861.00 8/2/2008 11108.00 9537.00 10861.00 8/3/2008 11108.00 9537.00 10861.00 8/4/2008 11011.00 9452.00 10767.00 8/5/2008 11341.00 9724.00 11090.00 8/6/2008 11374.00 9761.00 11123.00 8/7/2008 11216.00 9587.00 10968.00 8/8/2008 11590.00 9816.00 11335.00 8/9/2008 11590.00 9816.00 11335.00 8/10/2008 11590.00 9816.00 11335.00 8/11/2008 11645.00 9887.00 11388.00 8/12/2008 11502.00 9768.00 11249.00 8/13/2008 11471.00 9743.00 11218.00 8/14/2008 11568.00 9797.00 11313.00 8/15/2008 11667.00 9838.00 11410.00 8/16/2008 11667.00 9838.00 11410.00 8/17/2008 11667.00 9838.00 11410.00 8/18/2008 11513.00 9690.00 11261.00 8/19/2008 11308.00 9601.00 11059.00 8/20/2008 11308.00 9661.00 11058.00 8/21/2008 11313.00 9686.00 11065.00 8/22/2008 11480.00 9797.00 11229.00 8/23/2008 11480.00 9797.00 11229.00 8/24/2008 11480.00 9797.00 11229.00 8/25/2008 11253.00 9604.00 11007.00 8/26/2008 11277.00 9640.00 11029.00 8/27/2008 11385.00 9718.00 11137.00 8/28/2008 11662.00 9864.00 11408.00 8/29/2008 11522.00 9729.00 11270.00 8/30/2008 11522.00 9729.00 11270.00 8/31/2008 11522.00 9729.00 11270.00 9/1/2008 11522.00 9729.00 11270.00 9/2/2008 11506.00 9690.00 11255.00 9/3/2008 11427.00 9675.00 11176.00 9/4/2008 10989.00 9386.00 10747.00 9/5/2008 10996.00 9428.00 10755.00 9/6/2008 10996.00 9428.00 10755.00 9/7/2008 10996.00 9428.00 10755.00 9/8/2008 11214.00 9623.00 10968.00 9/9/2008 10818.00 9294.00 10580.00 9/10/2008 10934.00 9352.00 10693.00 9/11/2008 11141.00 9484.00 10899.00 9/12/2008 11207.00 9504.00 10963.00 9/13/2008 11207.00 9504.00 10963.00 9/14/2008 11207.00 9504.00 10963.00 9/15/2008 10787.00 9056.00 10554.00 9/16/2008 10879.00 9215.00 10654.00 9/17/2008 10394.00 8781.00 10163.00 9/18/2008 10712.00 9164.00 10476.00 9/19/2008 10952.00 9533.00 10714.00 9/20/2008 10952.00 9533.00 10714.00 9/21/2008 10952.00 9533.00 10714.00 9/22/2008 10552.00 9169.00 10322.00 9/23/2008 10338.00 9026.00 10114.00 9/24/2008 10222.00 9008.00 9999.00 9/25/2008 10301.00 9185.00 10078.00 9/26/2008 10268.00 9216.00 10049.00 9/27/2008 10268.00 9216.00 10049.00 9/28/2008 10268.00 9216.00 10049.00 9/29/2008 9600.00 8407.00 9397.00 9/30/2008 9927.00 8862.00 9714.00 10/1/2008 9678.00 8824.00 9471.00 10/2/2008 9078.00 8469.00 8887.00 10/3/2008 8956.00 8355.00 8768.00 10/4/2008 8956.00 8355.00 8768.00 10/5/2008 8956.00 8355.00 8768.00 10/6/2008 8692.00 8034.00 8511.00 10/7/2008 8281.00 7573.00 8111.00 10/8/2008 8224.00 7491.00 8055.00 10/9/2008 7710.00 6920.00 7549.00 10/10/2008 7652.00 6840.00 7491.00 10/11/2008 7652.00 6840.00 7491.00 10/12/2008 7652.00 6840.00 7491.00 10/13/2008 8462.00 7632.00 8284.00 10/14/2008 8305.00 7591.00 8130.00 10/15/2008 7482.00 6906.00 7325.00 10/16/2008 7816.00 7200.00 7653.00 10/17/2008 7679.00 7155.00 7516.00 10/18/2008 7679.00 7155.00 7516.00 10/19/2008 7679.00 7155.00 7516.00 10/20/2008 8003.00 7496.00 7835.00 10/21/2008 7670.00 7265.00 7507.00 10/22/2008 7246.00 6824.00 7095.00 10/23/2008 7209.00 6910.00 7062.00 10/24/2008 6900.00 6672.00 6756.00 10/25/2008 6900.00 6672.00 6756.00 10/26/2008 6900.00 6672.00 6756.00 10/27/2008 6712.00 6460.00 6572.00 10/28/2008 7396.00 7157.00 7244.00 10/29/2008 7423.00 7078.00 7270.00 10/30/2008 7738.00 7262.00 7580.00 10/31/2008 7884.00 7374.00 7724.00
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF.................... -37.12% -12.41% S&P 500 EQUAL WEIGHT INDUSTRIALS TOTAL RETURN INDEX....... -36.96% -12.13% S&P 500 TOTAL RETURN INDEX................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 27 ANNUAL REPORT Rydex S&P Equal Weight Industrials ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ C.H. ROBINSON WORLDWIDE, INC. 2.24% WASTE MANAGEMENT, INC. 2.22% 3M CO. 2.20% ALLIED WASTE INDUSTRIES, INC. 2.20% BURLINGTON NORTHERN SANTA FE CORP. 2.18% UNION PACIFIC CORP. 2.18% BOEING CO. 2.17% UNITED TECHNOLOGIES CORP. 2.12% W.W. GRAINGER, INC. 2.12% RAYTHEON CO. 2.10% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Machinery 21.90 Aerospace & Defense 20.90 Commercial Services & Supplies 16.89 Road & Rail 9.81 Air Freight & Logistics 7.99 Industrial Conglomerates 6.93 Electrical Equipment 5.41 Trading Companies & Distributors 3.94 Construction & Engineering 3.09 Airlines 1.84 Building Products 1.30
* 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. 28 RYDEX S&P EQUAL WEIGHT MATERIALS ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ending October 31, 2008, Rydex S&P Equal Weight Materials ETF returned -40.67% compared to the benchmark S&P Equal Weight Materials Total Return Index and the capitalization-weighted S&P Materials Index, which returned -40.18% and -41.18% respectively for the same time period. Both the equal-weight and cap-weight materials indices benefited most from the construction materials industry. Metals and mining exposure, on the other hand, detracted from both indices' returns. The S&P Equal Weight Materials Index's higher allocation to containers and packaging stocks relative to the cap- weighted materials index helped RTM. During the second half of the year, the fund's lower average weight to the top-heavy metals and mining industry, including names such as Freeport McMoran Copper and Gold (FCX), gave it an added advantage. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 EQUAL WEIGHT RYDEX S&P S&P 500 MATERIALS TOTAL EQUAL WEIGHT TOTAL RETURN RETURN INDEX MATERIALS ETF(A) INDEX(B) (C) ---------------- ------------ --------------- 11/1/2006 10000 10000 10001 11/2/2006 10064 9999 10064 11/3/2006 10019 9978 10019 11/4/2006 10019 9978 10019 11/5/2006 10019 9978 10019 11/6/2006 10132 10091 10133 11/7/2006 10116 10114 10116 11/8/2006 10167 10137 10167 11/9/2006 10233 10085 10234 11/10/2006 10165 10104 10167 11/11/2006 10165 10104 10167 11/12/2006 10165 10104 10167 11/13/2006 10260 10132 10262 11/14/2006 10277 10198 10279 11/15/2006 10301 10225 10303 11/16/2006 10273 10249 10274 11/17/2006 10291 10259 10294 11/18/2006 10291 10259 10294 11/19/2006 10291 10259 10294 11/20/2006 10384 10254 10387 11/21/2006 10452 10272 10456 11/22/2006 10547 10297 10552 11/23/2006 10547 10297 10552 11/24/2006 10551 10260 10556 11/25/2006 10551 10260 10556 11/26/2006 10551 10260 10556 11/27/2006 10394 10120 10397 11/28/2006 10386 10158 10391 11/29/2006 10516 10256 10521 11/30/2006 10555 10264 10561 12/1/2006 10485 10236 10491 12/2/2006 10485 10236 10491 12/3/2006 10485 10236 10491 12/4/2006 10671 10327 10676 12/5/2006 10729 10368 10735 12/6/2006 10725 10357 10731 12/7/2006 10762 10317 10768 12/8/2006 10807 10336 10814 12/9/2006 10807 10336 10814 12/10/2006 10807 10336 10814 12/11/2006 10768 10359 10774 12/12/2006 10636 10349 10642 12/13/2006 10677 10363 10684 12/14/2006 10739 10453 10746 12/15/2006 10809 10465 10817 12/16/2006 10809 10465 10817 12/17/2006 10809 10465 10817 12/18/2006 10706 10431 10714 12/19/2006 10783 10454 10791 12/20/2006 10745 10440 10753 12/21/2006 10624 10404 10633 12/22/2006 10578 10350 10587 12/23/2006 10578 10350 10587 12/24/2006 10578 10350 10587 12/25/2006 10578 10350 10587 12/26/2006 10673 10395 10683 12/27/2006 10795 10470 10805 12/28/2006 10758 10455 10767 12/29/2006 10690 10408 10699 12/30/2006 10690 10408 10699 12/31/2006 10690 10408 10699 1/1/2007 10690 10408 10699 1/2/2007 10690 10408 10699 1/3/2007 10652 10398 10662 1/4/2007 10562 10411 10572 1/5/2007 10502 10347 10512 1/6/2007 10502 10347 10512 1/7/2007 10502 10347 10512 1/8/2007 10526 10373 10538 1/9/2007 10520 10368 10531 1/10/2007 10568 10389 10580 1/11/2007 10715 10455 10726 1/12/2007 10820 10506 10833 1/13/2007 10820 10506 10833 1/14/2007 10820 10506 10833 1/15/2007 10820 10506 10833 1/16/2007 10814 10515 10828 1/17/2007 10835 10506 10848 1/18/2007 10777 10475 10791 1/19/2007 10918 10506 10931 1/20/2007 10918 10506 10931 1/21/2007 10918 10506 10931 1/22/2007 10814 10451 10828 1/23/2007 10978 10488 10991 1/24/2007 11054 10577 11069 1/25/2007 10965 10458 10980 1/26/2007 10967 10445 10983 1/27/2007 10967 10445 10983 1/28/2007 10967 10445 10983 1/29/2007 10945 10435 10960 1/30/2007 10963 10495 10978 1/31/2007 11090 10566 11105 2/1/2007 11170 10625 11186 2/2/2007 11166 10643 11182 2/3/2007 11166 10643 11182 2/4/2007 11166 10643 11182 2/5/2007 11116 10634 11134 2/6/2007 11179 10641 11195 2/7/2007 11187 10660 11203 2/8/2007 11170 10648 11188 2/9/2007 11127 10573 11145 2/10/2007 11127 10573 11145 2/11/2007 11127 10573 11145 2/12/2007 11137 10539 11155 2/13/2007 11365 10621 11384 2/14/2007 11425 10705 11444 2/15/2007 11487 10717 11506 2/16/2007 11508 10708 11529 2/17/2007 11508 10708 11529 2/18/2007 11508 10708 11529 2/19/2007 11508 10708 11529 2/20/2007 11553 10739 11574 2/21/2007 11705 10724 11726 2/22/2007 11649 10717 11671 2/23/2007 11651 10680 11674 2/24/2007 11651 10680 11674 2/25/2007 11651 10680 11674 2/26/2007 11758 10668 11781 2/27/2007 11278 10299 11297 2/28/2007 11334 10359 11356 3/1/2007 11276 10332 11297 3/2/2007 11087 10215 11108 3/3/2007 11087 10215 11108 3/4/2007 11087 10215 11108 3/5/2007 10943 10119 10963 3/6/2007 11150 10276 11171 3/7/2007 11123 10254 11143 3/8/2007 11266 10327 11287 3/9/2007 11313 10334 11335 3/10/2007 11313 10334 11335 3/11/2007 11313 10334 11335 3/12/2007 11361 10362 11384 3/13/2007 11073 10154 11095 3/14/2007 11160 10223 11183 3/15/2007 11303 10261 11326 3/16/2007 11214 10222 11236 3/17/2007 11214 10222 11236 3/18/2007 11214 10222 11236 3/19/2007 11377 10333 11399 3/20/2007 11462 10399 11486 3/21/2007 11615 10577 11640 3/22/2007 11586 10573 11609 3/23/2007 11628 10584 11653 3/24/2007 11628 10584 11653 3/25/2007 11628 10584 11653 3/26/2007 11702 10595 11728 3/27/2007 11589 10529 11613 3/28/2007 11479 10448 11503 3/29/2007 11549 10487 11574 3/30/2007 11533 10475 11558 3/31/2007 11533 10475 11558 4/1/2007 11533 10475 11558 4/2/2007 11591 10502 11616 4/3/2007 11713 10602 11740 4/4/2007 11717 10614 11744 4/5/2007 11707 10649 11734 4/6/2007 11707 10649 11734 4/7/2007 11707 10649 11734 4/8/2007 11707 10649 11734 4/9/2007 11800 10655 11827 4/10/2007 11736 10684 11763 4/11/2007 11649 10615 11676 4/12/2007 11746 10681 11774 4/13/2007 11769 10718 11798 4/14/2007 11769 10718 11798 4/15/2007 11769 10718 11798 4/16/2007 11919 10833 11949 4/17/2007 11859 10855 11888 4/18/2007 11786 10863 11815 4/19/2007 11788 10850 11817 4/20/2007 11919 10951 11950 4/21/2007 11919 10951 11950 4/22/2007 11919 10951 11950 4/23/2007 11902 10926 11932 4/24/2007 11805 10922 11834 4/25/2007 12000 11034 12032 4/26/2007 11981 11026 12012 4/27/2007 11962 11025 11993 4/28/2007 11962 11025 11993 4/29/2007 11962 11025 11993 4/30/2007 11780 10939 11811 5/1/2007 11707 10968 11738 5/2/2007 11819 11040 11851 5/3/2007 11904 11091 11937 5/4/2007 11950 11115 11982 5/5/2007 11950 11115 11982 5/6/2007 11950 11115 11982 5/7/2007 12052 11144 12085 5/8/2007 12039 11132 12072 5/9/2007 12126 11171 12160 5/10/2007 11910 11017 11943 5/11/2007 12025 11124 12059 5/12/2007 12025 11124 12059 5/13/2007 12025 11124 12059 5/14/2007 11973 11105 12006 5/15/2007 12050 11091 12084 5/16/2007 12070 11190 12105 5/17/2007 12066 11181 12101 5/18/2007 12145 11255 12180 5/19/2007 12145 11255 12180 5/20/2007 12145 11255 12180 5/21/2007 12158 11272 12194 5/22/2007 12135 11265 12170 5/23/2007 12120 11252 12156 5/24/2007 11973 11144 12008 5/25/2007 12116 11205 12152 5/26/2007 12116 11205 12152 5/27/2007 12116 11205 12152 5/28/2007 12116 11205 12152 5/29/2007 12089 11224 12125 5/30/2007 12236 11318 12275 5/31/2007 12284 11321 12322 6/1/2007 12403 11363 12442 6/2/2007 12403 11363 12442 6/3/2007 12403 11363 12442 6/4/2007 12382 11384 12420 6/5/2007 12330 11324 12369 6/6/2007 12176 11226 12214 6/7/2007 11896 11030 11933 6/8/2007 12099 11155 12138 6/9/2007 12099 11155 12138 6/10/2007 12099 11155 12138 6/11/2007 12006 11166 12044 6/12/2007 11873 11047 11911 6/13/2007 12137 11217 12176 6/14/2007 12218 11272 12258 6/15/2007 12329 11345 12370 6/16/2007 12329 11345 12370 6/17/2007 12329 11345 12370 6/18/2007 12319 11332 12361 6/19/2007 12381 11352 12405 6/20/2007 12173 11197 12266 6/21/2007 12275 11269 12372 6/22/2007 12167 11124 12263 6/23/2007 12167 11124 12263 6/24/2007 12167 11124 12263 6/25/2007 12068 11088 12161 6/26/2007 11949 11053 12043 6/27/2007 12026 11154 12120 6/28/2007 12051 11150 12145 6/29/2007 12122 11133 12216 6/30/2007 12122 11133 12216 7/1/2007 12122 11133 12216 7/2/2007 12301 11252 12400 7/3/2007 12313 11294 12411 7/4/2007 12313 11294 12411 7/5/2007 12363 11298 12462 7/6/2007 12417 11339 12517 7/7/2007 12417 11339 12517 7/8/2007 12417 11339 12517 7/9/2007 12411 11349 12510 7/10/2007 12219 11188 12317 7/11/2007 12353 11254 12453 7/12/2007 12638 11468 12741 7/13/2007 12727 11504 12831 7/14/2007 12727 11504 12831 7/15/2007 12727 11504 12831 7/16/2007 12611 11482 12715 7/17/2007 12698 11481 12803 7/18/2007 12754 11458 12860 7/19/2007 12804 11510 12910 7/20/2007 12588 11369 12693 7/21/2007 12588 11369 12693 7/22/2007 12588 11369 12693 7/23/2007 12644 11425 12749 7/24/2007 12469 11199 12573 7/25/2007 12350 11251 12454 7/26/2007 11945 10988 12043 7/27/2007 11697 10814 11793 7/28/2007 11697 10814 11793 7/29/2007 11697 10814 11793 7/30/2007 11953 10925 12051 7/31/2007 11826 10787 11922 8/1/2007 11864 10866 11962 8/2/2007 11832 10916 11931 8/3/2007 11522 10627 11616 8/4/2007 11522 10627 11616 8/5/2007 11522 10627 11616 8/6/2007 11683 10884 11779 8/7/2007 11680 10951 11776 8/8/2007 11903 11109 12003 8/9/2007 11522 10781 11618 8/10/2007 11591 10786 11688 8/11/2007 11591 10786 11688 8/12/2007 11591 10786 11688 8/13/2007 11593 10782 11691 8/14/2007 11306 10587 11399 8/15/2007 10969 10443 11057 8/16/2007 10915 10477 11003 8/17/2007 11158 10735 11250 8/18/2007 11158 10735 11250 8/19/2007 11158 10735 11250 8/20/2007 11279 10732 11373 8/21/2007 11325 10744 11419 8/22/2007 11649 10870 11749 8/23/2007 11564 10858 11663 8/24/2007 11743 10985 11844 8/25/2007 11743 10985 11844 8/26/2007 11743 10985 11844 8/27/2007 11624 10892 11726 8/28/2007 11289 10636 11385 8/29/2007 11556 10872 11656 8/30/2007 11524 10827 11625 8/31/2007 11676 10949 11778 9/1/2007 11676 10949 11778 9/2/2007 11676 10949 11778 9/3/2007 11676 10949 11778 9/4/2007 11741 11064 11843 9/5/2007 11612 10942 11713 9/6/2007 11714 10990 11816 9/7/2007 11450 10804 11549 9/8/2007 11450 10804 11549 9/9/2007 11450 10804 11549 9/10/2007 11304 10791 11402 9/11/2007 11443 10938 11542 9/12/2007 11425 10942 11525 9/13/2007 11545 11034 11647 9/14/2007 11599 11037 11703 9/15/2007 11599 11037 11703 9/16/2007 11599 11037 11703 9/17/2007 11558 10980 11661 9/18/2007 12043 11301 12154 9/19/2007 12192 11370 12305 9/20/2007 12149 11296 12262 9/21/2007 12221 11348 12335 9/22/2007 12221 11348 12335 9/23/2007 12221 11348 12335 9/24/2007 12146 11289 12259 9/25/2007 12115 11285 12226 9/26/2007 12209 11348 12322 9/27/2007 12356 11393 12472 9/28/2007 12273 11359 12387 9/29/2007 12273 11359 12387 9/30/2007 12273 11359 12387 10/1/2007 12469 11510 12586 10/2/2007 12463 11507 12580 10/3/2007 12342 11457 12459 10/4/2007 12327 11481 12444 10/5/2007 12578 11594 12698 10/6/2007 12578 11594 12698 10/7/2007 12578 11594 12698 10/8/2007 12498 11557 12619 10/9/2007 12676 11650 12797 10/10/2007 12540 11631 12661 10/11/2007 12480 11572 12599 10/12/2007 12544 11627 12667 10/13/2007 12544 11627 12667 10/14/2007 12544 11627 12667 10/15/2007 12419 11530 12539 10/16/2007 12246 11454 12366 10/17/2007 12263 11475 12383 10/18/2007 12363 11467 12483 10/19/2007 12081 11173 12198 10/20/2007 12081 11173 12198 10/21/2007 12081 11173 12198 10/22/2007 12052 11216 12170 10/23/2007 12127 11315 12244 10/24/2007 12181 11287 12299 10/25/2007 12156 11276 12275 10/26/2007 12296 11432 12415 10/27/2007 12296 11432 12415 10/28/2007 12296 11432 12415 10/29/2007 12394 11476 12514 10/30/2007 12177 11402 12296 10/31/2007 12402 11539 12524 11/1/2007 12014 11237 12131 11/2/2007 12068 11247 12185 11/3/2007 12068 11247 12185 11/4/2007 12068 11247 12185 11/5/2007 11962 11192 12078 11/6/2007 12204 11327 12322 11/7/2007 11803 11000 11919 11/8/2007 11916 10994 12033 11/9/2007 11732 10837 11846 11/10/2007 11732 10837 11846 11/11/2007 11732 10837 11846 11/12/2007 11417 10729 11529 11/13/2007 11691 11045 11805 11/14/2007 11689 10970 11802 11/15/2007 11436 10825 11546 11/16/2007 11426 10882 11536 11/17/2007 11426 10882 11536 11/18/2007 11426 10882 11536 11/19/2007 11060 10692 11166 11/20/2007 11217 10741 11324 11/21/2007 11052 10571 11157 11/22/2007 11052 10571 11157 11/23/2007 11229 10750 11338 11/24/2007 11229 10750 11338 11/25/2007 11229 10750 11338 11/26/2007 11031 10500 11138 11/27/2007 11161 10658 11267 11/28/2007 11670 10966 11785 11/29/2007 11695 10972 11810 11/30/2007 11831 11057 11948 12/1/2007 11831 11057 11948 12/2/2007 11831 11057 11948 12/3/2007 11753 10992 11869 12/4/2007 11649 10920 11763 12/5/2007 11816 11092 11933 12/6/2007 12062 11260 12182 12/7/2007 12142 11240 12264 12/8/2007 12142 11240 12264 12/9/2007 12142 11240 12264 12/10/2007 12283 11325 12408 12/11/2007 11858 11039 11974 12/12/2007 11991 11107 12111 12/13/2007 12025 11121 12144 12/14/2007 11787 10969 11902 12/15/2007 11787 10969 11902 12/16/2007 11787 10969 11902 12/17/2007 11499 10804 11608 12/18/2007 11599 10872 11710 12/19/2007 11534 10857 11646 12/20/2007 11680 10914 11794 12/21/2007 11926 11097 12046 12/22/2007 11926 11097 12046 12/23/2007 11926 11097 12046 12/24/2007 11976 11187 12097 12/25/2007 11976 11187 12097 12/26/2007 12020 11196 12143 12/27/2007 11840 11040 11958 12/28/2007 11853 11056 11972 12/29/2007 11853 11056 11972 12/30/2007 11853 11056 11972 12/31/2007 11775 10980 11893 1/1/2008 11775 10980 11893 1/2/2008 11619 10824 11736 1/3/2008 11628 10824 11744 1/4/2008 11283 10558 11397 1/5/2008 11283 10558 11397 1/6/2008 11283 10558 11397 1/7/2008 11171 10592 11284 1/8/2008 10912 10401 11022 1/9/2008 10977 10544 11089 1/10/2008 11190 10628 11305 1/11/2008 11045 10484 11156 1/12/2008 11045 10484 11156 1/13/2008 11045 10484 11156 1/14/2008 11374 10598 11490 1/15/2008 11051 10334 11165 1/16/2008 10855 10277 10966 1/17/2008 10384 9979 10490 1/18/2008 10504 9918 10612 1/19/2008 10504 9918 10612 1/20/2008 10504 9918 10612 1/21/2008 10504 9918 10612 1/22/2008 10411 9809 10518 1/23/2008 10631 10019 10740 1/24/2008 10781 10120 10891 1/25/2008 10775 9960 10885 1/26/2008 10775 9960 10885 1/27/2008 10775 9960 10885 1/28/2008 11019 10135 11133 1/29/2008 11083 10198 11199 1/30/2008 11055 10150 11171 1/31/2008 11279 10322 11398 2/1/2008 11503 10448 11624 2/2/2008 11503 10448 11624 2/3/2008 11503 10448 11624 2/4/2008 11323 10339 11444 2/5/2008 10971 10009 11086 2/6/2008 10929 9937 11044 2/7/2008 11030 10017 11146 2/8/2008 11136 9975 11255 2/9/2008 11136 9975 11255 2/10/2008 11136 9975 11255 2/11/2008 11283 10035 11404 2/12/2008 11275 10108 11395 2/13/2008 11431 10249 11552 2/14/2008 11294 10112 11414 2/15/2008 11279 10121 11399 2/16/2008 11279 10121 11399 2/17/2008 11279 10121 11399 2/18/2008 11279 10121 11399 2/19/2008 11427 10113 11550 2/20/2008 11568 10198 11694 2/21/2008 11404 10070 11526 2/22/2008 11465 10151 11589 2/23/2008 11465 10151 11589 2/24/2008 11465 10151 11589 2/25/2008 11733 10291 11861 2/26/2008 11756 10362 11884 2/27/2008 11758 10355 11888 2/28/2008 11687 10264 11814 2/29/2008 11231 9986 11353 3/1/2008 11231 9986 11353 3/2/2008 11231 9986 11353 3/3/2008 11359 9992 11484 3/4/2008 11174 9957 11295 3/5/2008 11404 10015 11529 3/6/2008 11205 9796 11329 3/7/2008 10899 9713 11019 3/8/2008 10899 9713 11019 3/9/2008 10899 9713 11019 3/10/2008 10563 9564 10676 3/11/2008 11152 9919 11275 3/12/2008 11112 9833 11235 3/13/2008 11302 9883 11428 3/14/2008 11169 9678 11292 3/15/2008 11169 9678 11292 3/16/2008 11169 9678 11292 3/17/2008 10981 9593 11103 3/18/2008 11330 10000 11457 3/19/2008 10827 9757 10947 3/20/2008 10846 9991 10964 3/21/2008 10846 9991 10964 3/22/2008 10846 9991 10964 3/23/2008 10846 9991 10964 3/24/2008 11170 10144 11292 3/25/2008 11376 10167 11504 3/26/2008 11326 10079 11452 3/27/2008 11161 9965 11286 3/28/2008 11127 9887 11252 3/29/2008 11127 9887 11252 3/30/2008 11127 9887 11252 3/31/2008 11191 9943 11317 4/1/2008 11561 10300 11691 4/2/2008 11665 10282 11796 4/3/2008 11743 10296 11876 4/4/2008 11955 10304 12091 4/5/2008 11955 10304 12091 4/6/2008 11955 10304 12091 4/7/2008 11885 10320 12020 4/8/2008 11928 10271 12065 4/9/2008 11758 10189 11896 4/10/2008 11784 10235 11921 4/11/2008 11589 10027 11724 4/12/2008 11589 10027 11724 4/13/2008 11589 10027 11724 4/14/2008 11546 9993 11683 4/15/2008 11576 10039 11714 4/16/2008 12089 10268 12235 4/17/2008 12040 10275 12185 4/18/2008 12209 10461 12356 4/19/2008 12209 10461 12356 4/20/2008 12209 10461 12356 4/21/2008 12173 10445 12321 4/22/2008 11930 10353 12072 4/23/2008 11818 10383 11959 4/24/2008 11769 10450 11907 4/25/2008 12059 10518 12205 4/26/2008 12059 10518 12205 4/27/2008 12059 10518 12205 4/28/2008 11955 10508 12096 4/29/2008 11724 10467 11863 4/30/2008 11671 10427 11811 5/1/2008 11659 10608 11796 5/2/2008 11731 10642 11872 5/3/2008 11731 10642 11872 5/4/2008 11731 10642 11872 5/5/2008 11828 10595 11975 5/6/2008 11915 10677 12066 5/7/2008 11843 10488 11988 5/8/2008 12048 10527 12198 5/9/2008 11898 10458 12045 5/10/2008 11898 10458 12045 5/11/2008 11898 10458 12045 5/12/2008 12097 10573 12245 5/13/2008 12137 10572 12288 5/14/2008 12233 10616 12384 5/15/2008 12426 10730 12580 5/16/2008 12551 10744 12708 5/17/2008 12551 10744 12708 5/18/2008 12551 10744 12708 5/19/2008 12544 10754 12698 5/20/2008 12476 10654 12633 5/21/2008 12133 10484 12285 5/22/2008 12072 10513 12222 5/23/2008 11909 10375 12058 5/24/2008 11909 10375 12058 5/25/2008 11909 10375 12058 5/26/2008 11909 10375 12058 5/27/2008 11896 10446 12043 5/28/2008 12212 10489 12363 5/29/2008 12137 10546 12287 5/30/2008 12127 10562 12279 5/31/2008 12127 10562 12279 6/1/2008 12127 10562 12279 6/2/2008 12034 10452 12185 6/3/2008 11934 10392 12086 6/4/2008 11943 10393 12095 6/5/2008 12243 10597 12401 6/6/2008 11890 10271 12044 6/7/2008 11890 10271 12044 6/8/2008 11890 10271 12044 6/9/2008 11932 10279 12088 6/10/2008 11741 10254 11894 6/11/2008 11519 10083 11672 6/12/2008 11559 10117 11711 6/13/2008 11875 10269 12033 6/14/2008 11875 10269 12033 6/15/2008 11875 10269 12033 6/16/2008 11843 10270 12001 6/17/2008 11771 10201 11928 6/18/2008 11650 10102 11808 6/19/2008 11716 10143 11875 6/20/2008 11469 9955 11625 6/21/2008 11469 9955 11625 6/22/2008 11469 9955 11625 6/23/2008 11535 9955 11693 6/24/2008 11268 9927 11421 6/25/2008 11414 9986 11571 6/26/2008 11037 9695 11186 6/27/2008 11043 9660 11194 6/28/2008 11043 9660 11194 6/29/2008 11043 9660 11194 6/30/2008 10997 9672 11147 7/1/2008 10888 9711 11037 7/2/2008 10396 9535 10537 7/3/2008 10451 9545 10594 7/4/2008 10451 9545 10594 7/5/2008 10451 9545 10594 7/6/2008 10451 9545 10594 7/7/2008 10381 9465 10522 7/8/2008 10481 9631 10625 7/9/2008 10338 9412 10479 7/10/2008 10700 9478 10846 7/11/2008 10683 9374 10828 7/12/2008 10683 9374 10828 7/13/2008 10683 9374 10828 7/14/2008 10656 9289 10799 7/15/2008 10575 9188 10717 7/16/2008 10749 9420 10896 7/17/2008 10873 9533 11022 7/18/2008 10839 9536 10988 7/19/2008 10839 9536 10988 7/20/2008 10839 9536 10988 7/21/2008 10982 9531 11132 7/22/2008 10997 9660 11147 7/23/2008 10988 9699 11140 7/24/2008 10705 9475 10851 7/25/2008 10745 9515 10893 7/26/2008 10745 9515 10893 7/27/2008 10745 9515 10893 7/28/2008 10688 9338 10834 7/29/2008 11009 9557 11162 7/30/2008 11218 9716 11374 7/31/2008 11148 9591 11304 8/1/2008 10990 9537 11142 8/2/2008 10990 9537 11142 8/3/2008 10990 9537 11142 8/4/2008 10694 9452 10841 8/5/2008 10922 9724 11073 8/6/2008 11003 9761 11155 8/7/2008 10837 9587 10986 8/8/2008 11003 9816 11157 8/9/2008 11003 9816 11157 8/10/2008 11003 9816 11157 8/11/2008 10997 9887 11151 8/12/2008 11009 9768 11162 8/13/2008 11146 9743 11303 8/14/2008 11129 9797 11285 8/15/2008 11158 9838 11317 8/16/2008 11158 9838 11317 8/17/2008 11158 9838 11317 8/18/2008 11039 9690 11195 8/19/2008 10960 9601 11113 8/20/2008 11094 9661 11251 8/21/2008 11141 9686 11298 8/22/2008 11152 9797 11310 8/23/2008 11152 9797 11310 8/24/2008 11152 9797 11310 8/25/2008 10935 9604 11089 8/26/2008 11020 9640 11176 8/27/2008 11146 9718 11303 8/28/2008 11369 9864 11533 8/29/2008 11229 9729 11390 8/30/2008 11229 9729 11390 8/31/2008 11229 9729 11390 9/1/2008 11229 9729 11390 9/2/2008 11080 9690 11238 9/3/2008 11094 9675 11253 9/4/2008 10673 9386 10826 9/5/2008 10775 9428 10929 9/6/2008 10775 9428 10929 9/7/2008 10775 9428 10929 9/8/2008 10781 9623 10938 9/9/2008 10372 9294 10521 9/10/2008 10558 9352 10710 9/11/2008 10711 9484 10866 9/12/2008 10901 9504 11061 9/13/2008 10901 9504 11061 9/14/2008 10901 9504 11061 9/15/2008 10338 9056 10488 9/16/2008 10547 9215 10699 9/17/2008 10127 8781 10272 9/18/2008 10436 9164 10587 9/19/2008 10907 9533 11068 9/20/2008 10907 9533 11068 9/21/2008 10907 9533 11068 9/22/2008 10493 9169 10650 9/23/2008 10250 9026 10408 9/24/2008 10210 9008 10368 9/25/2008 10255 9185 10417 9/26/2008 10031 9216 10194 9/27/2008 10031 9216 10194 9/28/2008 10031 9216 10194 9/29/2008 9179 8407 9332 9/30/2008 9498 8862 9654 10/1/2008 9327 8824 9484 10/2/2008 8683 8469 8837 10/3/2008 8610 8355 8762 10/4/2008 8610 8355 8762 10/5/2008 8610 8355 8762 10/6/2008 8274 8034 8420 10/7/2008 7777 7573 7919 10/8/2008 7927 7491 8069 10/9/2008 7381 6920 7516 10/10/2008 7366 6840 7502 10/11/2008 7366 6840 7502 10/12/2008 7366 6840 7502 10/13/2008 8205 7632 8352 10/14/2008 8051 7591 8198 10/15/2008 7079 6906 7212 10/16/2008 7426 7200 7565 10/17/2008 7372 7155 7509 10/18/2008 7372 7155 7509 10/19/2008 7372 7155 7509 10/20/2008 7848 7496 7990 10/21/2008 7481 7265 7619 10/22/2008 6931 6824 7061 10/23/2008 6867 6910 6997 10/24/2008 6582 6672 6706 10/25/2008 6582 6672 6706 10/26/2008 6582 6672 6706 10/27/2008 6257 6460 6375 10/28/2008 7002 7157 7134 10/29/2008 7027 7078 7155 10/30/2008 7229 7262 7359 10/31/2008 7359 7374 7492
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT MATERIALS ETF...................... -40.67% -14.22% S&P 500 EQUAL WEIGHT MATERIALS TOTAL RETURN INDEX......... -40.18% -13.46% S&P 500 TOTAL RETURN INDEX................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 29 ANNUAL REPORT Rydex S&P Equal Weight Materials ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ ROHM & HAAS CO. 4.58% BEMIS CO., INC. 4.16% NUCOR CORP. 4.08% PACTIV CORP. 4.05% HERCULES, INC. 4.04% SIGMA-ALDRICH CORP. 3.90% BALL CORP. 3.86% MONSANTO CO. 3.70% PRAXAIR, INC. 3.70% TITANIUM METALS CORP. 3.60% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Chemicals 50.42 Metals & Mining 22.02 Containers & Packaging 15.61 Paper & Forest Products 8.73 Construction Materials 3.22
* 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. 30 RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the period ended October 31, 2008, Rydex S&P Equal Weight Technology ETF returned -45.58% compared to its benchmark S&P Equal Weight Technology Total Return Index and the capitalization-weighted S&P Technology Index, which returned -45.55% and -41.21% respectively for the same time period. The office electronics industry benefited both the equal weight technology index and its cap-weighted counterpart. While semiconductors and semiconductor equipment were the largest detractors of returns for the S&P Equal Weight Technology Index, the cap-weighted technology index and the equal weight index were hurt most by computers and peripherals. The equal weight exposure to computers and peripherals was most responsible for RYT's underperformance. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 EQUAL WEIGHT RYDEX S&P S&P 500 INFORMATION TECHNOLOGY EQUAL WEIGHT TOTAL RETURN TOTAL RETURN TECHNOLOGY ETF(A) INDEX(B) INDEX(C) ----------------- ------------ ---------------------- 11/1/2006 10000 10000 10001 11/2/2006 10008 9999 10011 11/3/2006 10010 9978 10013 11/4/2006 10010 9978 10013 11/5/2006 10010 9978 10013 11/6/2006 10169 10091 10172 11/7/2006 10228 10114 10231 11/8/2006 10266 10137 10269 11/9/2006 10249 10085 10253 11/10/2006 10312 10104 10315 11/11/2006 10312 10104 10315 11/12/2006 10312 10104 10315 11/13/2006 10423 10132 10426 11/14/2006 10548 10198 10551 11/15/2006 10561 10225 10566 11/16/2006 10592 10249 10597 11/17/2006 10579 10259 10585 11/18/2006 10579 10259 10585 11/19/2006 10579 10259 10585 11/20/2006 10594 10254 10599 11/21/2006 10596 10272 10601 11/22/2006 10697 10297 10703 11/23/2006 10697 10297 10703 11/24/2006 10665 10260 10671 11/25/2006 10665 10260 10671 11/26/2006 10665 10260 10671 11/27/2006 10400 10120 10406 11/28/2006 10397 10158 10403 11/29/2006 10439 10256 10445 11/30/2006 10485 10264 10492 12/1/2006 10400 10236 10408 12/2/2006 10400 10236 10408 12/3/2006 10400 10236 10408 12/4/2006 10527 10327 10536 12/5/2006 10569 10368 10577 12/6/2006 10523 10357 10532 12/7/2006 10427 10317 10434 12/8/2006 10441 10336 10451 12/9/2006 10441 10336 10451 12/10/2006 10441 10336 10451 12/11/2006 10446 10359 10454 12/12/2006 10395 10349 10404 12/13/2006 10372 10363 10381 12/14/2006 10527 10453 10536 12/15/2006 10527 10465 10538 12/16/2006 10527 10465 10538 12/17/2006 10527 10465 10538 12/18/2006 10456 10431 10468 12/19/2006 10404 10454 10415 12/20/2006 10423 10440 10433 12/21/2006 10339 10404 10350 12/22/2006 10262 10350 10274 12/23/2006 10262 10350 10274 12/24/2006 10262 10350 10274 12/25/2006 10262 10350 10274 12/26/2006 10316 10395 10329 12/27/2006 10387 10470 10399 12/28/2006 10358 10455 10370 12/29/2006 10316 10408 10329 12/30/2006 10316 10408 10329 12/31/2006 10316 10408 10329 1/1/2007 10316 10408 10329 1/2/2007 10316 10408 10329 1/3/2007 10328 10398 10342 1/4/2007 10513 10411 10526 1/5/2007 10425 10347 10439 1/6/2007 10425 10347 10439 1/7/2007 10425 10347 10439 1/8/2007 10435 10373 10448 1/9/2007 10469 10368 10483 1/10/2007 10546 10389 10561 1/11/2007 10590 10455 10605 1/12/2007 10611 10506 10625 1/13/2007 10611 10506 10625 1/14/2007 10611 10506 10625 1/15/2007 10611 10506 10625 1/16/2007 10582 10515 10595 1/17/2007 10492 10506 10506 1/18/2007 10268 10475 10282 1/19/2007 10301 10506 10315 1/20/2007 10301 10506 10315 1/21/2007 10301 10506 10315 1/22/2007 10211 10451 10225 1/23/2007 10224 10488 10239 1/24/2007 10379 10577 10394 1/25/2007 10287 10458 10301 1/26/2007 10335 10445 10351 1/27/2007 10335 10445 10351 1/28/2007 10335 10445 10351 1/29/2007 10297 10435 10313 1/30/2007 10343 10495 10359 1/31/2007 10370 10566 10386 2/1/2007 10412 10625 10428 2/2/2007 10473 10643 10488 2/3/2007 10473 10643 10488 2/4/2007 10473 10643 10488 2/5/2007 10467 10634 10484 2/6/2007 10456 10641 10473 2/7/2007 10575 10660 10593 2/8/2007 10598 10648 10615 2/9/2007 10462 10573 10479 2/10/2007 10462 10573 10479 2/11/2007 10462 10573 10479 2/12/2007 10418 10539 10435 2/13/2007 10462 10621 10480 2/14/2007 10632 10705 10651 2/15/2007 10692 10717 10710 2/16/2007 10674 10708 10693 2/17/2007 10674 10708 10693 2/18/2007 10674 10708 10693 2/19/2007 10674 10708 10693 2/20/2007 10724 10739 10743 2/21/2007 10711 10724 10731 2/22/2007 10799 10717 10818 2/23/2007 10831 10680 10852 2/24/2007 10831 10680 10852 2/25/2007 10831 10680 10852 2/26/2007 10778 10668 10799 2/27/2007 10374 10299 10395 2/28/2007 10431 10359 10451 3/1/2007 10354 10332 10372 3/2/2007 10167 10215 10187 3/3/2007 10167 10215 10187 3/4/2007 10167 10215 10187 3/5/2007 10079 10119 10098 3/6/2007 10255 10276 10276 3/7/2007 10199 10254 10220 3/8/2007 10291 10327 10311 3/9/2007 10316 10334 10337 3/10/2007 10316 10334 10337 3/11/2007 10316 10334 10337 3/12/2007 10387 10362 10407 3/13/2007 10172 10154 10193 3/14/2007 10280 10223 10303 3/15/2007 10305 10261 10326 3/16/2007 10266 10222 10288 3/17/2007 10266 10222 10288 3/18/2007 10266 10222 10288 3/19/2007 10299 10333 10323 3/20/2007 10383 10399 10407 3/21/2007 10582 10577 10605 3/22/2007 10515 10573 10539 3/23/2007 10513 10584 10537 3/24/2007 10513 10584 10537 3/25/2007 10513 10584 10537 3/26/2007 10546 10595 10571 3/27/2007 10504 10529 10528 3/28/2007 10404 10448 10429 3/29/2007 10349 10487 10375 3/30/2007 10377 10475 10401 3/31/2007 10377 10475 10401 4/1/2007 10377 10475 10401 4/2/2007 10429 10502 10456 4/3/2007 10523 10602 10551 4/4/2007 10556 10614 10585 4/5/2007 10615 10649 10644 4/6/2007 10615 10649 10644 4/7/2007 10615 10649 10644 4/8/2007 10615 10649 10644 4/9/2007 10584 10655 10612 4/10/2007 10611 10684 10640 4/11/2007 10523 10615 10552 4/12/2007 10605 10681 10634 4/13/2007 10613 10718 10642 4/14/2007 10613 10718 10642 4/15/2007 10613 10718 10642 4/16/2007 10690 10833 10720 4/17/2007 10699 10855 10729 4/18/2007 10751 10863 10782 4/19/2007 10738 10850 10770 4/20/2007 10814 10951 10845 4/21/2007 10814 10951 10845 4/22/2007 10814 10951 10845 4/23/2007 10810 10926 10840 4/24/2007 10908 10922 10939 4/25/2007 10987 11034 11020 4/26/2007 11021 11026 11053 4/27/2007 10977 11025 11009 4/28/2007 10977 11025 11009 4/29/2007 10977 11025 11009 4/30/2007 10839 10939 10872 5/1/2007 10856 10968 10889 5/2/2007 10939 11040 10972 5/3/2007 10977 11091 11011 5/4/2007 10985 11115 11019 5/5/2007 10985 11115 11019 5/6/2007 10985 11115 11019 5/7/2007 10964 11144 10998 5/8/2007 10977 11132 11011 5/9/2007 11052 11171 11087 5/10/2007 10885 11017 10918 5/11/2007 11038 11124 11072 5/12/2007 11038 11124 11072 5/13/2007 11038 11124 11072 5/14/2007 10985 11105 11021 5/15/2007 10879 11091 10914 5/16/2007 10975 11190 11009 5/17/2007 10914 11181 10948 5/18/2007 11010 11255 11046 5/19/2007 11010 11255 11046 5/20/2007 11010 11255 11046 5/21/2007 11063 11272 11099 5/22/2007 11096 11265 11133 5/23/2007 11002 11252 11038 5/24/2007 10801 11144 10836 5/25/2007 10897 11205 10935 5/26/2007 10897 11205 10935 5/27/2007 10897 11205 10935 5/28/2007 10897 11205 10935 5/29/2007 10962 11224 11000 5/30/2007 11027 11318 11065 5/31/2007 11144 11321 11178 6/1/2007 11176 11363 11209 6/2/2007 11176 11363 11209 6/3/2007 11176 11363 11209 6/4/2007 11232 11384 11266 6/5/2007 11188 11324 11225 6/6/2007 11103 11226 11139 6/7/2007 10927 11030 10963 6/8/2007 11105 11155 11142 6/9/2007 11105 11155 11142 6/10/2007 11105 11155 11142 6/11/2007 11094 11166 11130 6/12/2007 11000 11047 11037 6/13/2007 11153 11217 11189 6/14/2007 11205 11272 11243 6/15/2007 11274 11345 11312 6/16/2007 11274 11345 11312 6/17/2007 11274 11345 11312 6/18/2007 11282 11332 11317 6/19/2007 11268 11352 11307 6/20/2007 11174 11197 11211 6/21/2007 11356 11269 11395 6/22/2007 11234 11124 11273 6/23/2007 11234 11124 11273 6/24/2007 11234 11124 11273 6/25/2007 11163 11088 11202 6/26/2007 11126 11053 11164 6/27/2007 11291 11154 11331 6/28/2007 11262 11150 11300 6/29/2007 11205 11133 11245 6/30/2007 11205 11133 11245 7/1/2007 11205 11133 11245 7/2/2007 11305 11252 11347 7/3/2007 11331 11294 11373 7/4/2007 11331 11294 11373 7/5/2007 11389 11298 11431 7/6/2007 11454 11339 11496 7/7/2007 11454 11339 11496 7/8/2007 11454 11339 11496 7/9/2007 11477 11349 11519 7/10/2007 11393 11188 11436 7/11/2007 11427 11254 11469 7/12/2007 11649 11468 11692 7/13/2007 11640 11504 11683 7/14/2007 11640 11504 11683 7/15/2007 11640 11504 11683 7/16/2007 11638 11482 11681 7/17/2007 11718 11481 11760 7/18/2007 11634 11458 11676 7/19/2007 11778 11510 11822 7/20/2007 11657 11369 11700 7/21/2007 11657 11369 11700 7/22/2007 11657 11369 11700 7/23/2007 11672 11425 11716 7/24/2007 11473 11199 11516 7/25/2007 11446 11251 11488 7/26/2007 11190 10988 11232 7/27/2007 10958 10814 10998 7/28/2007 10958 10814 10998 7/29/2007 10958 10814 10998 7/30/2007 11063 10925 11103 7/31/2007 10881 10787 10922 8/1/2007 10921 10866 10962 8/2/2007 10969 10916 11011 8/3/2007 10657 10627 10698 8/4/2007 10657 10627 10698 8/5/2007 10657 10627 10698 8/6/2007 10780 10884 10821 8/7/2007 10772 10951 10814 8/8/2007 10931 11109 10973 8/9/2007 10686 10781 10725 8/10/2007 10726 10786 10767 8/11/2007 10726 10786 10767 8/12/2007 10726 10786 10767 8/13/2007 10789 10782 10830 8/14/2007 10594 10587 10634 8/15/2007 10374 10443 10414 8/16/2007 10320 10477 10359 8/17/2007 10527 10735 10568 8/18/2007 10527 10735 10568 8/19/2007 10527 10735 10568 8/20/2007 10554 10732 10596 8/21/2007 10617 10744 10659 8/22/2007 10745 10870 10789 8/23/2007 10711 10858 10755 8/24/2007 10837 10985 10881 8/25/2007 10837 10985 10881 8/26/2007 10837 10985 10881 8/27/2007 10751 10892 10796 8/28/2007 10508 10636 10551 8/29/2007 10768 10872 10812 8/30/2007 10789 10827 10833 8/31/2007 10908 10949 10953 9/1/2007 10908 10949 10953 9/2/2007 10908 10949 10953 9/3/2007 10908 10949 10953 9/4/2007 11073 11064 11118 9/5/2007 10954 10942 10999 9/6/2007 11017 10990 11064 9/7/2007 10782 10804 10828 9/8/2007 10782 10804 10828 9/9/2007 10782 10804 10828 9/10/2007 10774 10791 10819 9/11/2007 10929 10938 10975 9/12/2007 10847 10942 10894 9/13/2007 10833 11034 10879 9/14/2007 10822 11037 10869 9/15/2007 10822 11037 10869 9/16/2007 10822 11037 10869 9/17/2007 10757 10980 10804 9/18/2007 11008 11301 11056 9/19/2007 11059 11370 11107 9/20/2007 11044 11296 11092 9/21/2007 11069 11348 11117 9/22/2007 11069 11348 11117 9/23/2007 11069 11348 11117 9/24/2007 11025 11289 11074 9/25/2007 11111 11285 11161 9/26/2007 11134 11348 11184 9/27/2007 11163 11393 11214 9/28/2007 11149 11359 11201 9/29/2007 11149 11359 11201 9/30/2007 11149 11359 11201 10/1/2007 11310 11510 11363 10/2/2007 11354 11507 11408 10/3/2007 11274 11457 11326 10/4/2007 11274 11481 11326 10/5/2007 11418 11594 11473 10/6/2007 11418 11594 11473 10/7/2007 11418 11594 11473 10/8/2007 11464 11557 11518 10/9/2007 11498 11650 11552 10/10/2007 11527 11631 11581 10/11/2007 11364 11572 11417 10/12/2007 11510 11627 11566 10/13/2007 11510 11627 11566 10/14/2007 11510 11627 11566 10/15/2007 11483 11530 11539 10/16/2007 11400 11454 11457 10/17/2007 11517 11475 11573 10/18/2007 11527 11467 11584 10/19/2007 11205 11173 11261 10/20/2007 11205 11173 11261 10/21/2007 11205 11173 11261 10/22/2007 11318 11216 11374 10/23/2007 11397 11315 11453 10/24/2007 11243 11287 11298 10/25/2007 11174 11276 11227 10/26/2007 11328 11432 11383 10/27/2007 11328 11432 11383 10/28/2007 11328 11432 11383 10/29/2007 11391 11476 11447 10/30/2007 11410 11402 11466 10/31/2007 11544 11539 11601 11/1/2007 11274 11237 11332 11/2/2007 11372 11247 11428 11/3/2007 11372 11247 11428 11/4/2007 11372 11247 11428 11/5/2007 11285 11192 11340 11/6/2007 11316 11327 11365 11/7/2007 11042 11000 11084 11/8/2007 10822 10994 10864 11/9/2007 10573 10837 10631 11/10/2007 10573 10837 10631 11/11/2007 10573 10837 10631 11/12/2007 10427 10729 10486 11/13/2007 10749 11045 10801 11/14/2007 10575 10970 10630 11/15/2007 10494 10825 10538 11/16/2007 10586 10882 10625 11/17/2007 10586 10882 10625 11/18/2007 10586 10882 10625 11/19/2007 10400 10692 10446 11/20/2007 10341 10741 10375 11/21/2007 10207 10571 10243 11/22/2007 10207 10571 10243 11/23/2007 10343 10750 10385 11/24/2007 10343 10750 10385 11/25/2007 10343 10750 10385 11/26/2007 10096 10500 10131 11/27/2007 10276 10658 10300 11/28/2007 10596 10966 10623 11/29/2007 10611 10972 10629 11/30/2007 10525 11057 10544 12/1/2007 10525 11057 10544 12/2/2007 10525 11057 10544 12/3/2007 10485 10992 10503 12/4/2007 10433 10920 10452 12/5/2007 10661 11092 10681 12/6/2007 10810 11260 10829 12/7/2007 10820 11240 10840 12/8/2007 10820 11240 10840 12/9/2007 10820 11240 10840 12/10/2007 10918 11325 10938 12/11/2007 10678 11039 10698 12/12/2007 10749 11107 10769 12/13/2007 10718 11121 10737 12/14/2007 10598 10969 10618 12/15/2007 10598 10969 10618 12/16/2007 10598 10969 10618 12/17/2007 10391 10804 10411 12/18/2007 10425 10872 10445 12/19/2007 10456 10857 10476 12/20/2007 10615 10914 10636 12/21/2007 10717 11097 10737 12/22/2007 10717 11097 10737 12/23/2007 10717 11097 10737 12/24/2007 10773 11187 10797 12/25/2007 10773 11187 10797 12/26/2007 10781 11196 10804 12/27/2007 10585 11040 10608 12/28/2007 10595 11056 10618 12/29/2007 10595 11056 10618 12/30/2007 10595 11056 10618 12/31/2007 10503 10980 10526 1/1/2008 10503 10980 10526 1/2/2008 10231 10824 10254 1/3/2008 10158 10824 10182 1/4/2008 9733 10558 9755 1/5/2008 9733 10558 9755 1/6/2008 9733 10558 9755 1/7/2008 9643 10592 9667 1/8/2008 9392 10401 9414 1/9/2008 9465 10544 9488 1/10/2008 9547 10628 9570 1/11/2008 9321 10484 9344 1/12/2008 9321 10484 9344 1/13/2008 9321 10484 9344 1/14/2008 9484 10598 9508 1/15/2008 9222 10334 9245 1/16/2008 9235 10277 9259 1/17/2008 9065 9979 9088 1/18/2008 9137 9918 9161 1/19/2008 9137 9918 9161 1/20/2008 9137 9918 9161 1/21/2008 9137 9918 9161 1/22/2008 8883 9809 8906 1/23/2008 8919 10019 8941 1/24/2008 9229 10120 9253 1/25/2008 9137 9960 9161 1/26/2008 9137 9960 9161 1/27/2008 9137 9960 9161 1/28/2008 9250 10135 9274 1/29/2008 9333 10198 9358 1/30/2008 9375 10150 9399 1/31/2008 9465 10322 9489 2/1/2008 9802 10448 9827 2/2/2008 9802 10448 9827 2/3/2008 9802 10448 9827 2/4/2008 9672 10339 9699 2/5/2008 9371 10009 9396 2/6/2008 9285 9937 9310 2/7/2008 9281 10017 9305 2/8/2008 9315 9975 9339 2/9/2008 9315 9975 9339 2/10/2008 9315 9975 9339 2/11/2008 9465 10035 9492 2/12/2008 9444 10108 9470 2/13/2008 9700 10249 9727 2/14/2008 9478 10112 9504 2/15/2008 9425 10121 9453 2/16/2008 9425 10121 9453 2/17/2008 9425 10121 9453 2/18/2008 9425 10121 9453 2/19/2008 9369 10113 9396 2/20/2008 9513 10198 9541 2/21/2008 9432 10070 9459 2/22/2008 9478 10151 9506 2/23/2008 9478 10151 9506 2/24/2008 9478 10151 9506 2/25/2008 9599 10291 9627 2/26/2008 9683 10362 9712 2/27/2008 9735 10355 9764 2/28/2008 9549 10264 9577 2/29/2008 9321 9986 9349 3/1/2008 9321 9986 9349 3/2/2008 9321 9986 9349 3/3/2008 9258 9992 9286 3/4/2008 9283 9957 9312 3/5/2008 9377 10015 9407 3/6/2008 9153 9796 9181 3/7/2008 9128 9713 9156 3/8/2008 9128 9713 9156 3/9/2008 9128 9713 9156 3/10/2008 8978 9564 9005 3/11/2008 9279 9919 9307 3/12/2008 9227 9833 9256 3/13/2008 9264 9883 9294 3/14/2008 9045 9678 9074 3/15/2008 9045 9678 9074 3/16/2008 9045 9678 9074 3/17/2008 8942 9593 8970 3/18/2008 9306 10000 9336 3/19/2008 9042 9757 9071 3/20/2008 9211 9991 9242 3/21/2008 9211 9991 9242 3/22/2008 9211 9991 9242 3/23/2008 9211 9991 9242 3/24/2008 9493 10144 9524 3/25/2008 9514 10167 9546 3/26/2008 9370 10079 9401 3/27/2008 9177 9965 9207 3/28/2008 9116 9887 9146 3/29/2008 9116 9887 9146 3/30/2008 9116 9887 9146 3/31/2008 9179 9943 9210 4/1/2008 9495 10300 9526 4/2/2008 9520 10282 9552 4/3/2008 9621 10296 9654 4/4/2008 9627 10304 9660 4/5/2008 9627 10304 9660 4/6/2008 9627 10304 9660 4/7/2008 9571 10320 9603 4/8/2008 9474 10271 9508 4/9/2008 9426 10189 9460 4/10/2008 9554 10235 9588 4/11/2008 9292 10027 9326 4/12/2008 9292 10027 9326 4/13/2008 9292 10027 9326 4/14/2008 9229 9993 9262 4/15/2008 9244 10039 9278 4/16/2008 9543 10268 9578 4/17/2008 9522 10275 9557 4/18/2008 9797 10461 9832 4/19/2008 9797 10461 9832 4/20/2008 9797 10461 9832 4/21/2008 9862 10445 9896 4/22/2008 9642 10353 9676 4/23/2008 9836 10383 9873 4/24/2008 9977 10450 10013 4/25/2008 9968 10518 10004 4/26/2008 9968 10518 10004 4/27/2008 9968 10518 10004 4/28/2008 9935 10508 9971 4/29/2008 9970 10467 10007 4/30/2008 9866 10427 9901 5/1/2008 10159 10608 10196 5/2/2008 10132 10642 10169 5/3/2008 10132 10642 10169 5/4/2008 10132 10642 10169 5/5/2008 10060 10595 10097 5/6/2008 10209 10677 10247 5/7/2008 10040 10488 10076 5/8/2008 10092 10527 10130 5/9/2008 10063 10458 10100 5/10/2008 10063 10458 10100 5/11/2008 10063 10458 10100 5/12/2008 10230 10573 10269 5/13/2008 10272 10572 10310 5/14/2008 10360 10616 10398 5/15/2008 10573 10730 10614 5/16/2008 10594 10744 10634 5/17/2008 10594 10744 10634 5/18/2008 10594 10744 10634 5/19/2008 10538 10754 10579 5/20/2008 10389 10654 10429 5/21/2008 10268 10484 10308 5/22/2008 10291 10513 10330 5/23/2008 10201 10375 10240 5/24/2008 10201 10375 10240 5/25/2008 10201 10375 10240 5/26/2008 10201 10375 10240 5/27/2008 10366 10446 10407 5/28/2008 10427 10489 10469 5/29/2008 10504 10546 10546 5/30/2008 10605 10562 10648 5/31/2008 10605 10562 10648 6/1/2008 10605 10562 10648 6/2/2008 10452 10452 10495 6/3/2008 10437 10392 10480 6/4/2008 10548 10393 10593 6/5/2008 10665 10597 10711 6/6/2008 10366 10271 10410 6/7/2008 10366 10271 10410 6/8/2008 10366 10271 10410 6/9/2008 10326 10279 10372 6/10/2008 10226 10254 10269 6/11/2008 9952 10083 9994 6/12/2008 10010 10117 10054 6/13/2008 10209 10269 10256 6/14/2008 10209 10269 10256 6/15/2008 10209 10269 10256 6/16/2008 10287 10270 10334 6/17/2008 10161 10201 10207 6/18/2008 10004 10102 10048 6/19/2008 10163 10143 10210 6/20/2008 9924 9955 9969 6/21/2008 9924 9955 9969 6/22/2008 9924 9955 9969 6/23/2008 9820 9955 9866 6/24/2008 9799 9927 9844 6/25/2008 9941 9986 9989 6/26/2008 9594 9695 9640 6/27/2008 9546 9660 9590 6/28/2008 9546 9660 9590 6/29/2008 9546 9660 9590 6/30/2008 9466 9672 9512 7/1/2008 9464 9711 9509 7/2/2008 9307 9535 9350 7/3/2008 9246 9545 9292 7/4/2008 9246 9545 9292 7/5/2008 9246 9545 9292 7/6/2008 9246 9545 9292 7/7/2008 9267 9465 9313 7/8/2008 9368 9631 9413 7/9/2008 9093 9412 9137 7/10/2008 9154 9478 9199 7/11/2008 9051 9374 9096 7/12/2008 9051 9374 9096 7/13/2008 9051 9374 9096 7/14/2008 8951 9289 8995 7/15/2008 8970 9188 9015 7/16/2008 9234 9420 9281 7/17/2008 9378 9533 9426 7/18/2008 9349 9536 9397 7/19/2008 9349 9536 9397 7/20/2008 9349 9536 9397 7/21/2008 9278 9531 9325 7/22/2008 9269 9660 9318 7/23/2008 9376 9699 9426 7/24/2008 9112 9475 9160 7/25/2008 9190 9515 9238 7/26/2008 9190 9515 9238 7/27/2008 9190 9515 9238 7/28/2008 9020 9338 9067 7/29/2008 9229 9557 9279 7/30/2008 9271 9716 9320 7/31/2008 9206 9591 9254 8/1/2008 9146 9537 9194 8/2/2008 9146 9537 9194 8/3/2008 9146 9537 9194 8/4/2008 9129 9452 9177 8/5/2008 9349 9724 9398 8/6/2008 9458 9761 9508 8/7/2008 9424 9587 9474 8/8/2008 9652 9816 9704 8/9/2008 9652 9816 9704 8/10/2008 9652 9816 9704 8/11/2008 9770 9887 9822 8/12/2008 9719 9768 9771 8/13/2008 9705 9743 9758 8/14/2008 9822 9797 9876 8/15/2008 9872 9838 9927 8/16/2008 9872 9838 9927 8/17/2008 9872 9838 9927 8/18/2008 9713 9690 9766 8/19/2008 9562 9601 9615 8/20/2008 9581 9661 9633 8/21/2008 9552 9686 9604 8/22/2008 9669 9797 9723 8/23/2008 9669 9797 9723 8/24/2008 9669 9797 9723 8/25/2008 9487 9604 9539 8/26/2008 9433 9640 9484 8/27/2008 9535 9718 9587 8/28/2008 9644 9864 9698 8/29/2008 9445 9729 9499 8/30/2008 9445 9729 9499 8/31/2008 9445 9729 9499 9/1/2008 9445 9729 9499 9/2/2008 9387 9690 9439 9/3/2008 9202 9675 9255 9/4/2008 8863 9386 8911 9/5/2008 8913 9428 8963 9/6/2008 8913 9428 8963 9/7/2008 8913 9428 8963 9/8/2008 8974 9623 9025 9/9/2008 8704 9294 8751 9/10/2008 8773 9352 8822 9/11/2008 8821 9484 8871 9/12/2008 8823 9504 8873 9/13/2008 8823 9504 8873 9/14/2008 8823 9504 8873 9/15/2008 8472 9056 8519 9/16/2008 8518 9215 8568 9/17/2008 8164 8781 8208 9/18/2008 8467 9164 8513 9/19/2008 8740 9533 8789 9/20/2008 8740 9533 8789 9/21/2008 8740 9533 8789 9/22/2008 8338 9169 8388 9/23/2008 8235 9026 8286 9/24/2008 8296 9008 8345 9/25/2008 8411 9185 8460 9/26/2008 8407 9216 8459 9/27/2008 8407 9216 8459 9/28/2008 8407 9216 8459 9/29/2008 7636 8407 7683 9/30/2008 8030 8862 8081 10/1/2008 7883 8824 7932 10/2/2008 7475 8469 7522 10/3/2008 7347 8355 7393 10/4/2008 7347 8355 7393 10/5/2008 7347 8355 7393 10/6/2008 7039 8034 7083 10/7/2008 6613 7573 6655 10/8/2008 6576 7491 6617 10/9/2008 6328 6920 6369 10/10/2008 6224 6840 6264 10/11/2008 6224 6840 6264 10/12/2008 6224 6840 6264 10/13/2008 6957 7632 7000 10/14/2008 6731 7591 6771 10/15/2008 6127 6906 6164 10/16/2008 6400 7200 6439 10/17/2008 6362 7155 6403 10/18/2008 6362 7155 6403 10/19/2008 6362 7155 6403 10/20/2008 6613 7496 6652 10/21/2008 6253 7265 6288 10/22/2008 5939 6824 5971 10/23/2008 5849 6910 5884 10/24/2008 5708 6672 5742 10/25/2008 5708 6672 5742 10/26/2008 5708 6672 5742 10/27/2008 5587 6460 5620 10/28/2008 6163 7157 6201 10/29/2008 6043 7078 6077 10/30/2008 6213 7262 6248 10/31/2008 6282 7374 6316
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF............................. -45.58% -20.74% S&P 500 EQUAL WEIGHT TECHNOLOGY TOTAL RETURN INDEX................ -45.55% -20.55% S&P 500 TOTAL RETURN INDEX........................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 31 ANNUAL REPORT Rydex S&P Equal Weight Technology ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ MICRON TECHNOLOGY, INC. 2.03% TELLABS, INC. 1.96% ORACLE CORP. 1.78% CIENA CORP. 1.76% EMC CORP. 1.73% CITRIX SYSTEMS, INC. 1.70% PAYCHEX, INC. 1.61% MICROSOFT CORP. 1.59% VERISIGN, INC. 1.56% TEXAS INSTRUMENTS, INC. 1.56% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Semiconductors & Semiconductor Equipment 25.04 Software 17.75 IT Services 15.42 Computers & Peripherals 14.29 Communications Equipment 13.12 Internet Software & Services 6.87 Electronic Equipment & Instruments 6.35 Office Electronics 1.16
* 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. 32 RYDEX S&P EQUAL WEIGHT UTILITIES ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- For the year ended October 31, 2008, Rydex S&P Equal Weight Utilities ETF returned -31.63% while its benchmark, the S&P Equal Weight Utilities Total Return Index, returned -31.45% and the cap-weighted S&P Utilities Total Return Index returned -29.02%. Both Rydex S&P Equal Weight Utilities ETF and its traditional weight counterpart index were bolstered by the gas-utilities industry. Rydex S&P Equal Weight Utilities ETF was hurt most by multi-utilities while the cap-weight index was hurt most by electric utilities. However, it was the equal weight underexposure to the telecommunication services sector that was most responsible for the equal-weight strategy underperformance. The most glaring underperformer in the S&P 500 Equal Weight Utilities Total Return Index was Sprint Nextel (S), which was down more than 80% for the year. Diversified telecomm, which features big names like AT&T (T), Verizon (VZ) and Quest Communications (Q), also contributed to the performance of the ETF, losing close to 40% for the year and contributing more than 7% to the ETF's losses for the year. To provide adequate diversification within RYU, both the utilities and telecommunications sectors are included in this ETF. The inclusion of telecommunication will cause the ETF's performance to deviate from the S&P Equal Weight Utilities Index. CUMULATIVE FUND PERFORMANCE: NOVEMBER 1, 2006 - OCTOBER 31, 2008 (Performance Graph)
S&P 500 RYDEX S&P S&P 500 EQUAL WEIGHT EQUAL WEIGHT TOTAL RETURN UTILITIES TOTAL UTILITIES ETF(A) INDEX(B) RETURN INDEX(C) ---------------- ------------ --------------- 11/1/2006 10000 10000 10000 11/2/2006 9978 9999 9977 11/3/2006 9938 9978 9938 11/4/2006 9938 9978 9938 11/5/2006 9938 9978 9938 11/6/2006 9964 10091 9964 11/7/2006 9969 10114 9970 11/8/2006 10020 10137 10021 11/9/2006 9993 10085 9992 11/10/2006 10031 10104 10032 11/11/2006 10031 10104 10032 11/12/2006 10031 10104 10032 11/13/2006 10053 10132 10054 11/14/2006 10076 10198 10077 11/15/2006 10044 10225 10044 11/16/2006 10086 10249 10086 11/17/2006 10106 10259 10107 11/18/2006 10106 10259 10107 11/19/2006 10106 10259 10107 11/20/2006 10084 10254 10085 11/21/2006 10080 10272 10083 11/22/2006 10091 10297 10093 11/23/2006 10091 10297 10093 11/24/2006 10104 10260 10106 11/25/2006 10104 10260 10106 11/26/2006 10104 10260 10106 11/27/2006 10004 10120 10006 11/28/2006 10067 10158 10069 11/29/2006 10222 10256 10225 11/30/2006 10259 10264 10262 12/1/2006 10270 10236 10274 12/2/2006 10270 10236 10274 12/3/2006 10270 10236 10274 12/4/2006 10368 10327 10372 12/5/2006 10381 10368 10386 12/6/2006 10342 10357 10348 12/7/2006 10302 10317 10307 12/8/2006 10288 10336 10292 12/9/2006 10288 10336 10292 12/10/2006 10288 10336 10292 12/11/2006 10322 10359 10327 12/12/2006 10373 10349 10380 12/13/2006 10399 10363 10405 12/14/2006 10437 10453 10443 12/15/2006 10441 10465 10448 12/16/2006 10441 10465 10448 12/17/2006 10441 10465 10448 12/18/2006 10372 10431 10379 12/19/2006 10410 10454 10417 12/20/2006 10384 10440 10392 12/21/2006 10373 10404 10382 12/22/2006 10348 10350 10355 12/23/2006 10348 10350 10355 12/24/2006 10348 10350 10355 12/25/2006 10348 10350 10355 12/26/2006 10413 10395 10422 12/27/2006 10467 10470 10476 12/28/2006 10444 10455 10453 12/29/2006 10437 10408 10446 12/30/2006 10437 10408 10446 12/31/2006 10437 10408 10446 1/1/2007 10437 10408 10446 1/2/2007 10437 10408 10446 1/3/2007 10475 10398 10481 1/4/2007 10446 10411 10451 1/5/2007 10284 10347 10288 1/6/2007 10284 10347 10288 1/7/2007 10284 10347 10288 1/8/2007 10274 10373 10281 1/9/2007 10243 10368 10249 1/10/2007 10263 10389 10269 1/11/2007 10274 10455 10281 1/12/2007 10229 10506 10236 1/13/2007 10229 10506 10236 1/14/2007 10229 10506 10236 1/15/2007 10229 10506 10236 1/16/2007 10271 10515 10278 1/17/2007 10253 10506 10260 1/18/2007 10258 10475 10265 1/19/2007 10300 10506 10308 1/20/2007 10300 10506 10308 1/21/2007 10300 10506 10308 1/22/2007 10282 10451 10290 1/23/2007 10344 10488 10351 1/24/2007 10437 10577 10445 1/25/2007 10357 10458 10365 1/26/2007 10384 10445 10393 1/27/2007 10384 10445 10393 1/28/2007 10384 10445 10393 1/29/2007 10379 10435 10388 1/30/2007 10425 10495 10434 1/31/2007 10448 10566 10458 2/1/2007 10512 10625 10521 2/2/2007 10531 10643 10541 2/3/2007 10531 10643 10541 2/4/2007 10531 10643 10541 2/5/2007 10611 10634 10621 2/6/2007 10664 10641 10676 2/7/2007 10681 10660 10692 2/8/2007 10736 10648 10748 2/9/2007 10714 10573 10725 2/10/2007 10714 10573 10725 2/11/2007 10714 10573 10725 2/12/2007 10681 10539 10693 2/13/2007 10774 10621 10787 2/14/2007 10831 10705 10844 2/15/2007 10800 10717 10812 2/16/2007 10811 10708 10823 2/17/2007 10811 10708 10823 2/18/2007 10811 10708 10823 2/19/2007 10811 10708 10823 2/20/2007 10858 10739 10871 2/21/2007 10829 10724 10843 2/22/2007 10860 10717 10876 2/23/2007 10921 10680 10937 2/24/2007 10921 10680 10937 2/25/2007 10921 10680 10937 2/26/2007 11100 10668 11117 2/27/2007 10772 10299 10788 2/28/2007 10833 10359 10849 3/1/2007 10849 10332 10865 3/2/2007 10695 10215 10711 3/3/2007 10695 10215 10711 3/4/2007 10695 10215 10711 3/5/2007 10540 10119 10555 3/6/2007 10686 10276 10701 3/7/2007 10677 10254 10693 3/8/2007 10734 10327 10750 3/9/2007 10758 10334 10774 3/10/2007 10758 10334 10774 3/11/2007 10758 10334 10774 3/12/2007 10844 10362 10862 3/13/2007 10686 10154 10703 3/14/2007 10747 10223 10764 3/15/2007 10847 10261 10865 3/16/2007 10792 10222 10810 3/17/2007 10792 10222 10810 3/18/2007 10792 10222 10810 3/19/2007 10903 10333 10923 3/20/2007 11028 10399 11048 3/21/2007 11161 10577 11184 3/22/2007 11156 10573 11178 3/23/2007 11200 10584 11222 3/24/2007 11200 10584 11222 3/25/2007 11200 10584 11222 3/26/2007 11240 10595 11264 3/27/2007 11245 10529 11270 3/28/2007 11220 10448 11243 3/29/2007 11267 10487 11291 3/30/2007 11216 10475 11240 3/31/2007 11216 10475 11240 4/1/2007 11216 10475 11240 4/2/2007 11404 10502 11430 4/3/2007 11428 10602 11454 4/4/2007 11400 10614 11425 4/5/2007 11442 10649 11469 4/6/2007 11442 10649 11469 4/7/2007 11442 10649 11469 4/8/2007 11442 10649 11469 4/9/2007 11490 10655 11518 4/10/2007 11521 10684 11548 4/11/2007 11461 10615 11487 4/12/2007 11455 10681 11482 4/13/2007 11442 10718 11470 4/14/2007 11442 10718 11470 4/15/2007 11442 10718 11470 4/16/2007 11499 10833 11527 4/17/2007 11558 10855 11586 4/18/2007 11578 10863 11607 4/19/2007 11549 10850 11577 4/20/2007 11626 10951 11655 4/21/2007 11626 10951 11655 4/22/2007 11626 10951 11655 4/23/2007 11668 10926 11699 4/24/2007 11716 10922 11747 4/25/2007 11814 11034 11846 4/26/2007 11760 11026 11791 4/27/2007 11689 11025 11720 4/28/2007 11689 11025 11720 4/29/2007 11689 11025 11720 4/30/2007 11597 10939 11628 5/1/2007 11711 10968 11744 5/2/2007 11810 11040 11843 5/3/2007 11834 11091 11867 5/4/2007 11850 11115 11883 5/5/2007 11850 11115 11883 5/6/2007 11850 11115 11883 5/7/2007 11933 11144 11968 5/8/2007 11885 11132 11920 5/9/2007 11939 11171 11974 5/10/2007 11803 11017 11836 5/11/2007 11902 11124 11938 5/12/2007 11902 11124 11938 5/13/2007 11902 11124 11938 5/14/2007 11939 11105 11975 5/15/2007 11952 11091 11988 5/16/2007 12007 11190 12043 5/17/2007 11963 11181 11998 5/18/2007 12009 11255 12046 5/19/2007 12009 11255 12046 5/20/2007 12009 11255 12046 5/21/2007 12062 11272 12100 5/22/2007 12027 11265 12065 5/23/2007 11907 11252 11943 5/24/2007 11650 11144 11685 5/25/2007 11661 11205 11695 5/26/2007 11661 11205 11695 5/27/2007 11661 11205 11695 5/28/2007 11661 11205 11695 5/29/2007 11716 11224 11751 5/30/2007 11828 11318 11866 5/31/2007 11839 11321 11878 6/1/2007 11790 11363 11827 6/2/2007 11790 11363 11827 6/3/2007 11790 11363 11827 6/4/2007 11771 11384 11808 6/5/2007 11622 11324 11659 6/6/2007 11508 11226 11543 6/7/2007 11165 11030 11196 6/8/2007 11284 11155 11316 6/9/2007 11284 11155 11316 6/10/2007 11284 11155 11316 6/11/2007 11341 11166 11374 6/12/2007 11185 11047 11216 6/13/2007 11382 11217 11415 6/14/2007 11433 11272 11468 6/15/2007 11556 11345 11593 6/16/2007 11556 11345 11593 6/17/2007 11556 11345 11593 6/18/2007 11479 11332 11511 6/19/2007 11499 11352 11535 6/20/2007 11249 11197 11282 6/21/2007 11317 11269 11351 6/22/2007 11161 11124 11194 6/23/2007 11161 11124 11194 6/24/2007 11161 11124 11194 6/25/2007 11183 11088 11216 6/26/2007 11146 11053 11179 6/27/2007 11265 11154 11301 6/28/2007 11260 11150 11295 6/29/2007 11271 11133 11307 6/30/2007 11271 11133 11307 7/1/2007 11271 11133 11307 7/2/2007 11452 11252 11490 7/3/2007 11465 11294 11503 7/4/2007 11465 11294 11503 7/5/2007 11410 11298 11446 7/6/2007 11375 11339 11413 7/7/2007 11375 11339 11413 7/8/2007 11375 11339 11413 7/9/2007 11399 11349 11437 7/10/2007 11236 11188 11272 7/11/2007 11301 11254 11337 7/12/2007 11458 11468 11497 7/13/2007 11576 11504 11616 7/14/2007 11576 11504 11616 7/15/2007 11576 11504 11616 7/16/2007 11445 11482 11484 7/17/2007 11426 11481 11466 7/18/2007 11482 11458 11521 7/19/2007 11665 11510 11707 7/20/2007 11495 11369 11535 7/21/2007 11495 11369 11535 7/22/2007 11495 11369 11535 7/23/2007 11549 11425 11589 7/24/2007 11217 11199 11257 7/25/2007 11249 11251 11288 7/26/2007 10951 10988 10987 7/27/2007 10770 10814 10806 7/28/2007 10770 10814 10806 7/29/2007 10770 10814 10806 7/30/2007 10882 10925 10919 7/31/2007 10810 10787 10846 8/1/2007 11043 10866 11082 8/2/2007 11123 10916 11161 8/3/2007 10716 10627 10751 8/4/2007 10716 10627 10751 8/5/2007 10716 10627 10751 8/6/2007 10990 10884 11027 8/7/2007 11182 10951 11222 8/8/2007 11264 11109 11304 8/9/2007 10938 10781 10975 8/10/2007 10945 10786 10983 8/11/2007 10945 10786 10983 8/12/2007 10945 10786 10983 8/13/2007 10993 10782 11032 8/14/2007 10779 10587 10815 8/15/2007 10636 10443 10671 8/16/2007 10640 10477 10675 8/17/2007 10903 10735 10941 8/18/2007 10903 10735 10941 8/19/2007 10903 10735 10941 8/20/2007 10879 10732 10917 8/21/2007 10927 10744 10965 8/22/2007 11053 10870 11093 8/23/2007 11088 10858 11129 8/24/2007 11201 10985 11243 8/25/2007 11201 10985 11243 8/26/2007 11201 10985 11243 8/27/2007 10894 10892 10933 8/28/2007 10731 10636 10770 8/29/2007 11006 10872 11048 8/30/2007 10910 10827 10951 8/31/2007 10979 10949 11020 9/1/2007 10979 10949 11020 9/2/2007 10979 10949 11020 9/3/2007 10979 10949 11020 9/4/2007 11141 11064 11185 9/5/2007 10999 10942 11041 9/6/2007 11092 10990 11136 9/7/2007 10932 10804 10974 9/8/2007 10932 10804 10974 9/9/2007 10932 10804 10974 9/10/2007 10931 10791 10973 9/11/2007 11034 10938 11078 9/12/2007 11055 10942 11099 9/13/2007 11067 11034 11112 9/14/2007 11104 11037 11149 9/15/2007 11104 11037 11149 9/16/2007 11104 11037 11149 9/17/2007 11060 10980 11105 9/18/2007 11288 11301 11335 9/19/2007 11432 11370 11483 9/20/2007 11328 11296 11377 9/21/2007 11391 11348 11443 9/22/2007 11391 11348 11443 9/23/2007 11391 11348 11443 9/24/2007 11375 11289 11426 9/25/2007 11382 11285 11433 9/26/2007 11464 11348 11514 9/27/2007 11415 11393 11465 9/28/2007 11290 11359 11337 9/29/2007 11290 11359 11337 9/30/2007 11290 11359 11337 10/1/2007 11439 11510 11488 10/2/2007 11411 11507 11459 10/3/2007 11391 11457 11439 10/4/2007 11475 11481 11524 10/5/2007 11542 11594 11592 10/6/2007 11542 11594 11592 10/7/2007 11542 11594 11592 10/8/2007 11495 11557 11546 10/9/2007 11628 11650 11681 10/10/2007 11544 11631 11596 10/11/2007 11557 11572 11610 10/12/2007 11594 11627 11648 10/13/2007 11594 11627 11648 10/14/2007 11594 11627 11648 10/15/2007 11462 11530 11515 10/16/2007 11415 11454 11467 10/17/2007 11413 11475 11466 10/18/2007 11405 11467 11459 10/19/2007 11163 11173 11215 10/20/2007 11163 11173 11215 10/21/2007 11163 11173 11215 10/22/2007 11224 11216 11276 10/23/2007 11217 11315 11269 10/24/2007 11243 11287 11296 10/25/2007 11396 11276 11451 10/26/2007 11512 11432 11567 10/27/2007 11512 11432 11567 10/28/2007 11512 11432 11567 10/29/2007 11557 11476 11615 10/30/2007 11503 11402 11559 10/31/2007 11641 11539 11701 11/1/2007 11389 11237 11445 11/2/2007 11462 11247 11519 11/3/2007 11462 11247 11519 11/4/2007 11462 11247 11519 11/5/2007 11527 11192 11585 11/6/2007 11572 11327 11630 11/7/2007 11273 11000 11328 11/8/2007 11458 10994 11515 11/9/2007 11357 10837 11416 11/10/2007 11357 10837 11416 11/11/2007 11357 10837 11416 11/12/2007 11224 10729 11282 11/13/2007 11355 11045 11415 11/14/2007 11314 10970 11373 11/15/2007 11305 10825 11365 11/16/2007 11357 10882 11419 11/17/2007 11357 10882 11419 11/18/2007 11357 10882 11419 11/19/2007 11310 10692 11372 11/20/2007 11415 10741 11477 11/21/2007 11295 10571 11356 11/22/2007 11295 10571 11356 11/23/2007 11357 10750 11420 11/24/2007 11357 10750 11420 11/25/2007 11357 10750 11420 11/26/2007 11234 10500 11296 11/27/2007 11305 10658 11367 11/28/2007 11484 10966 11549 11/29/2007 11475 10972 11540 11/30/2007 11544 11057 11609 12/1/2007 11544 11057 11609 12/2/2007 11544 11057 11609 12/3/2007 11598 10992 11666 12/4/2007 11645 10920 11714 12/5/2007 11817 11092 11888 12/6/2007 11839 11260 11911 12/7/2007 11852 11240 11925 12/8/2007 11852 11240 11925 12/9/2007 11852 11240 11925 12/10/2007 11884 11325 11958 12/11/2007 11654 11039 11724 12/12/2007 11701 11107 11771 12/13/2007 11768 11121 11840 12/14/2007 11585 10969 11655 12/15/2007 11585 10969 11655 12/16/2007 11585 10969 11655 12/17/2007 11430 10804 11497 12/18/2007 11559 10872 11628 12/19/2007 11516 10857 11585 12/20/2007 11534 10914 11603 12/21/2007 11666 11097 11739 12/22/2007 11666 11097 11739 12/23/2007 11666 11097 11739 12/24/2007 11696 11187 11769 12/25/2007 11696 11187 11769 12/26/2007 11657 11196 11730 12/27/2007 11558 11040 11628 12/28/2007 11605 11056 11677 12/29/2007 11605 11056 11677 12/30/2007 11605 11056 11677 12/31/2007 11515 10980 11585 1/1/2008 11515 10980 11585 1/2/2008 11372 10824 11439 1/3/2008 11364 10824 11431 1/4/2008 11285 10558 11351 1/5/2008 11285 10558 11351 1/6/2008 11285 10558 11351 1/7/2008 11505 10592 11577 1/8/2008 11383 10401 11452 1/9/2008 11441 10544 11512 1/10/2008 11470 10628 11541 1/11/2008 11368 10484 11438 1/12/2008 11368 10484 11438 1/13/2008 11368 10484 11438 1/14/2008 11402 10598 11474 1/15/2008 11227 10334 11295 1/16/2008 11117 10277 11181 1/17/2008 10763 9979 10817 1/18/2008 10503 9918 10553 1/19/2008 10503 9918 10553 1/20/2008 10503 9918 10553 1/21/2008 10503 9918 10553 1/22/2008 10230 9809 10273 1/23/2008 10522 10019 10572 1/24/2008 10318 10120 10363 1/25/2008 10187 9960 10227 1/26/2008 10187 9960 10227 1/27/2008 10187 9960 10227 1/28/2008 10366 10135 10412 1/29/2008 10473 10198 10522 1/30/2008 10424 10150 10470 1/31/2008 10620 10322 10673 2/1/2008 10765 10448 10821 2/2/2008 10765 10448 10821 2/3/2008 10765 10448 10821 2/4/2008 10906 10339 10967 2/5/2008 10529 10009 10581 2/6/2008 10496 9937 10546 2/7/2008 10439 10017 10489 2/8/2008 10413 9975 10461 2/9/2008 10413 9975 10461 2/10/2008 10413 9975 10461 2/11/2008 10469 10035 10519 2/12/2008 10584 10108 10639 2/13/2008 10659 10249 10715 2/14/2008 10550 10112 10602 2/15/2008 10588 10121 10643 2/16/2008 10588 10121 10643 2/17/2008 10588 10121 10643 2/18/2008 10588 10121 10643 2/19/2008 10512 10113 10566 2/20/2008 10484 10198 10536 2/21/2008 10315 10070 10362 2/22/2008 10415 10151 10466 2/23/2008 10415 10151 10466 2/24/2008 10415 10151 10466 2/25/2008 10512 10291 10565 2/26/2008 10584 10362 10639 2/27/2008 10396 10355 10445 2/28/2008 10356 10264 10406 2/29/2008 10019 9986 10058 3/1/2008 10019 9986 10058 3/2/2008 10019 9986 10058 3/3/2008 10085 9992 10128 3/4/2008 10170 9957 10214 3/5/2008 10181 10015 10227 3/6/2008 9962 9796 10003 3/7/2008 9934 9713 9972 3/8/2008 9934 9713 9972 3/9/2008 9934 9713 9972 3/10/2008 9838 9564 9875 3/11/2008 10109 9919 10156 3/12/2008 9964 9833 10006 3/13/2008 9977 9883 10020 3/14/2008 9874 9678 9913 3/15/2008 9874 9678 9913 3/16/2008 9874 9678 9913 3/17/2008 9853 9593 9892 3/18/2008 10068 10000 10113 3/19/2008 9857 9757 9896 3/20/2008 9967 9991 10010 3/21/2008 9967 9991 10010 3/22/2008 9967 9991 10010 3/23/2008 9967 9991 10010 3/24/2008 10022 10144 10065 3/25/2008 10007 10167 10052 3/26/2008 10014 10079 10060 3/27/2008 10030 9965 10076 3/28/2008 9941 9887 9985 3/29/2008 9941 9887 9985 3/30/2008 9941 9887 9985 3/31/2008 10045 9943 10092 4/1/2008 10287 10300 10340 4/2/2008 10331 10282 10386 4/3/2008 10324 10296 10378 4/4/2008 10324 10304 10381 4/5/2008 10324 10304 10381 4/6/2008 10324 10304 10381 4/7/2008 10367 10320 10423 4/8/2008 10382 10271 10441 4/9/2008 10341 10189 10399 4/10/2008 10282 10235 10338 4/11/2008 10250 10027 10306 4/12/2008 10250 10027 10306 4/13/2008 10250 10027 10306 4/14/2008 10240 9993 10297 4/15/2008 10295 10039 10353 4/16/2008 10521 10268 10585 4/17/2008 10489 10275 10553 4/18/2008 10565 10461 10631 4/19/2008 10565 10461 10631 4/20/2008 10565 10461 10631 4/21/2008 10511 10445 10575 4/22/2008 10441 10353 10502 4/23/2008 10546 10383 10606 4/24/2008 10523 10450 10583 4/25/2008 10576 10518 10635 4/26/2008 10576 10518 10635 4/27/2008 10576 10518 10635 4/28/2008 10591 10508 10653 4/29/2008 10574 10467 10633 4/30/2008 10559 10427 10618 5/1/2008 10758 10608 10818 5/2/2008 10860 10642 10922 5/3/2008 10860 10642 10922 5/4/2008 10860 10642 10922 5/5/2008 10771 10595 10829 5/6/2008 10796 10677 10854 5/7/2008 10659 10488 10716 5/8/2008 10709 10527 10766 5/9/2008 10792 10458 10849 5/10/2008 10792 10458 10849 5/11/2008 10792 10458 10849 5/12/2008 10872 10573 10932 5/13/2008 10860 10572 10921 5/14/2008 10965 10616 11026 5/15/2008 10969 10730 11029 5/16/2008 11012 10744 11074 5/17/2008 11012 10744 11074 5/18/2008 11012 10744 11074 5/19/2008 11107 10754 11172 5/20/2008 11069 10654 11133 5/21/2008 11033 10484 11098 5/22/2008 11077 10513 11144 5/23/2008 10897 10375 10961 5/24/2008 10897 10375 10961 5/25/2008 10897 10375 10961 5/26/2008 10897 10375 10961 5/27/2008 10978 10446 11045 5/28/2008 11037 10489 11103 5/29/2008 11147 10546 11213 5/30/2008 11149 10562 11215 5/31/2008 11149 10562 11215 6/1/2008 11149 10562 11215 6/2/2008 11064 10452 11128 6/3/2008 10995 10392 11060 6/4/2008 11082 10393 11148 6/5/2008 11217 10597 11286 6/6/2008 10952 10271 11017 6/7/2008 10952 10271 11017 6/8/2008 10952 10271 11017 6/9/2008 11071 10279 11139 6/10/2008 11043 10254 11112 6/11/2008 10902 10083 10971 6/12/2008 10847 10117 10916 6/13/2008 10995 10269 11068 6/14/2008 10995 10269 11068 6/15/2008 10995 10269 11068 6/16/2008 11007 10270 11078 6/17/2008 11008 10201 11082 6/18/2008 10933 10102 11004 6/19/2008 11010 10143 11083 6/20/2008 10801 9955 10873 6/21/2008 10801 9955 10873 6/22/2008 10801 9955 10873 6/23/2008 10854 9955 10929 6/24/2008 10894 9927 10968 6/25/2008 10970 9986 11046 6/26/2008 10723 9695 10794 6/27/2008 10634 9660 10704 6/28/2008 10634 9660 10704 6/29/2008 10634 9660 10704 6/30/2008 10866 9672 10939 7/1/2008 10898 9711 10971 7/2/2008 10770 9535 10843 7/3/2008 10665 9545 10739 7/4/2008 10665 9545 10739 7/5/2008 10665 9545 10739 7/6/2008 10665 9545 10739 7/7/2008 10594 9465 10666 7/8/2008 10697 9631 10771 7/9/2008 10711 9412 10785 7/10/2008 10760 9478 10835 7/11/2008 10665 9374 10739 7/12/2008 10665 9374 10739 7/13/2008 10665 9374 10739 7/14/2008 10548 9289 10620 7/15/2008 10518 9188 10590 7/16/2008 10405 9420 10475 7/17/2008 10296 9533 10364 7/18/2008 10386 9536 10455 7/19/2008 10386 9536 10455 7/20/2008 10386 9536 10455 7/21/2008 10483 9531 10554 7/22/2008 10481 9660 10553 7/23/2008 10376 9699 10445 7/24/2008 10259 9475 10329 7/25/2008 10206 9515 10274 7/26/2008 10206 9515 10274 7/27/2008 10206 9515 10274 7/28/2008 10154 9338 10221 7/29/2008 10194 9557 10263 7/30/2008 10361 9716 10431 7/31/2008 10347 9591 10419 8/1/2008 10080 9537 10148 8/2/2008 10080 9537 10148 8/3/2008 10080 9537 10148 8/4/2008 9988 9452 10053 8/5/2008 10183 9724 10252 8/6/2008 10158 9761 10225 8/7/2008 10099 9587 10165 8/8/2008 10323 9816 10393 8/9/2008 10323 9816 10393 8/10/2008 10323 9816 10393 8/11/2008 10464 9887 10537 8/12/2008 10298 9768 10368 8/13/2008 10311 9743 10383 8/14/2008 10242 9797 10312 8/15/2008 10344 9838 10414 8/16/2008 10344 9838 10414 8/17/2008 10344 9838 10414 8/18/2008 10311 9690 10383 8/19/2008 10267 9601 10338 8/20/2008 10302 9661 10373 8/21/2008 10355 9686 10428 8/22/2008 10422 9797 10497 8/23/2008 10422 9797 10497 8/24/2008 10422 9797 10497 8/25/2008 10290 9604 10363 8/26/2008 10367 9640 10441 8/27/2008 10460 9718 10535 8/28/2008 10565 9864 10643 8/29/2008 10405 9729 10479 8/30/2008 10405 9729 10479 8/31/2008 10405 9729 10479 9/1/2008 10405 9729 10479 9/2/2008 10328 9690 10401 9/3/2008 10259 9675 10332 9/4/2008 10097 9386 10167 9/5/2008 9978 9428 10046 9/6/2008 9978 9428 10046 9/7/2008 9978 9428 10046 9/8/2008 10236 9623 10309 9/9/2008 10005 9294 10072 9/10/2008 10007 9352 10075 9/11/2008 10061 9484 10129 9/12/2008 10164 9504 10235 9/13/2008 10164 9504 10235 9/14/2008 10164 9504 10235 9/15/2008 9825 9056 9889 9/16/2008 9728 9215 9789 9/17/2008 9227 8781 9278 9/18/2008 9581 9164 9639 9/19/2008 9836 9533 9900 9/20/2008 9836 9533 9900 9/21/2008 9836 9533 9900 9/22/2008 9536 9169 9601 9/23/2008 9438 9026 9499 9/24/2008 9461 9008 9525 9/25/2008 9723 9185 9790 9/26/2008 9658 9216 9727 9/27/2008 9658 9216 9727 9/28/2008 9658 9216 9727 9/29/2008 9117 8407 9180 9/30/2008 9243 8862 9308 10/1/2008 9290 8824 9358 10/2/2008 9067 8469 9137 10/3/2008 8994 8355 9064 10/4/2008 8994 8355 9064 10/5/2008 8994 8355 9064 10/6/2008 8505 8034 8573 10/7/2008 8116 7573 8185 10/8/2008 7987 7491 8052 10/9/2008 7463 6920 7521 10/10/2008 7167 6840 7215 10/11/2008 7167 6840 7215 10/12/2008 7167 6840 7215 10/13/2008 8112 7632 8169 10/14/2008 8031 7591 8091 10/15/2008 7378 6906 7432 10/16/2008 7639 7200 7698 10/17/2008 7685 7155 7742 10/18/2008 7685 7155 7742 10/19/2008 7685 7155 7742 10/20/2008 8315 7496 8378 10/21/2008 8027 7265 8087 10/22/2008 7496 6824 7556 10/23/2008 7743 6910 7807 10/24/2008 7453 6672 7516 10/25/2008 7453 6672 7516 10/26/2008 7453 6672 7516 10/27/2008 7225 6460 7287 10/28/2008 7946 7157 8016 10/29/2008 7707 7078 7770 10/30/2008 7977 7262 8043 10/31/2008 7960 7374 8021
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION ONE YEAR (11/01/06) -------- --------------- RYDEX S&P EQUAL WEIGHT UTILITIES ETF.............................. -31.63% -10.79% S&P 500 EQUAL WEIGHT UTILITIES TOTAL RETURN INDEX................. -31.45% -10.45% S&P 500 TOTAL RETURN INDEX........................................ -36.10% -14.15%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. 33 ANNUAL REPORT Rydex S&P Equal Weight Utilities ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CONSTELLATION ENERGY GROUP, INC. 2.96% DYNEGY, INC. -- CLASS A 2.94% NICOR, INC. 2.82% CONSOLIDATED EDISON, INC. 2.80% INTEGRYS ENERGY GROUP, INC. 2.74% AT&T, INC. 2.73% PEPCO HOLDINGS, INC. 2.72% PPL CORP. 2.71% AMERICAN ELECTRIC POWER CO., INC. 2.70% VERIZON COMMUNICATIONS, INC. 2.70% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Electric Utilities 33.94 Multi-Utilities 33.37 Diversified Telecommunication Services 15.66 Independent Power Producers & Energy Traders 7.89 Gas Utilities 5.19 Wireless Telecommunication Services 3.95
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's investments market value. These percentages may change over time. 34 RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 99.3% AEROSPACE & DEFENSE 0.3% Northrop Grumman Corp. ....... 1,250 $58,613 ----------- TOTAL AEROSPACE & DEFENSE 58,613 ----------- AUTOMOBILES 0.5% Ford Motor Co.*............... 39,610 86,746 ----------- TOTAL AUTOMOBILES 86,746 ----------- BUILDING PRODUCTS 0.7% Masco Corp. .................. 12,210 123,932 ----------- TOTAL BUILDING PRODUCTS 123,932 ----------- CAPITAL MARKETS 2.5% American Capital, Ltd. ....... 7,590 106,640 E*TRADE Financial Corp.*...... 112,400 204,568 Merrill Lynch & Co., Inc. .... 2,958 54,989 Morgan Stanley................ 4,340 75,820 ----------- TOTAL CAPITAL MARKETS 442,017 ----------- CHEMICALS 1.7% Ashland, Inc. ................ 7,120 160,841 Dow Chemical Co.(The)......... 5,220 139,217 ----------- TOTAL CHEMICALS 300,058 ----------- COMMERCIAL BANKS 13.5% BB&T Corp. ................... 7,488 268,445 Comerica, Inc. ............... 6,830 188,440 Fifth Third Bancorp........... 8,450 91,683 First Horizon National Corp. ..................... 21,960 261,544 Huntington Bancshares, Inc. .. 22,330 211,018 KeyCorp....................... 14,040 171,709 M&T Bank Corp. ............... 1,474 119,541 Marshall & Ilsley Corp. ...... 9,080 163,712 National City Corp. .......... 27,080 73,116 PNC Financial Services Group, Inc. ...................... 1,530 102,005 Regions Financial Corp. ...... 14,400 159,696 SunTrust Banks, Inc. ......... 3,260 130,856 U.S. Bancorp.................. 4,558 135,874 Wachovia Corp. ............... 8,590 55,062 Wells Fargo & Co. ............ 4,284 145,870 Zions Bancorp................. 4,170 158,919 ----------- TOTAL COMMERCIAL BANKS 2,437,490 ----------- COMMERCIAL SERVICES & SUPPLIES 1.6% Allied Waste Industries, Inc.*...................... 14,440 150,465 Avery Dennison Corp. ......... 1,980 69,339 R.R. Donnelley & Sons Co. .... 4,040 66,943 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 286,747 ----------- CONSUMER FINANCE 0.7% Capital One Financial Corp. .. 3,044 119,081 ----------- TOTAL CONSUMER FINANCE 119,081 ----------- CONTAINERS & PACKAGING 0.9% Bemis Co., Inc. .............. 6,920 171,893 ----------- TOTAL CONTAINERS & PACKAGING 171,893 ----------- DIVERSIFIED FINANCIAL SERVICES 3.3% Bank of America Corp. ........ 6,570 158,797 CIT Group, Inc. .............. 22,349 92,525 Citigroup, Inc. .............. 10,510 143,461 JPMorgan Chase & Co. ......... 4,640 191,400 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 586,183 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES 3.1% AT&T, Inc. ................... 3,130 83,790 Embarq Corp. ................. 4,300 129,000 Frontier Communications Corp. ..................... 16,020 121,912 Verizon Communications, Inc. ...................... 4,570 135,592 Windstream Corp. ............. 11,850 88,994 ----------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 559,288 ----------- ELECTRIC UTILITIES 6.8% American Electric Power Co., Inc. ...................... 3,310 108,005 Duke Energy Corp. ............ 16,250 266,175 Pepco Holdings, Inc. ......... 9,870 203,816 Pinnacle West Capital Corp. .. 7,970 252,250 Progress Energy, Inc. ........ 6,510 256,299 Southern Co. ................. 4,080 140,107 ----------- TOTAL ELECTRIC UTILITIES 1,226,652 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.1% Jabil Circuit, Inc. .......... 22,600 190,066 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 190,066 ----------- FOOD & STAPLES RETAILING 2.1% Kroger Co.(The)............... 5,830 160,092 Safeway, Inc. ................ 3,390 72,105 SUPERVALU, Inc. .............. 10,260 146,102 ----------- TOTAL FOOD & STAPLES RETAILING 378,299 ----------- FOOD PRODUCTS 2.3% Dean Foods Co.*............... 6,800 148,648 Tyson Foods, Inc. -- Class A.. 29,430 257,218 ----------- TOTAL FOOD PRODUCTS 405,866 ----------- GAS UTILITIES 1.7% Nicor, Inc. .................. 6,530 301,751 ----------- TOTAL GAS UTILITIES 301,751 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 0.7% Covidien, Ltd. ............... 3,060 135,527 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 135,527 ----------- HEALTH CARE PROVIDERS & SERVICES 3.5% AmerisourceBergen Corp. ...... 9,090 284,244 Cardinal Health, Inc. ........ 2,820 107,724 McKesson Corp. ............... 3,050 112,210 Tenet Healthcare Corp.*....... 30,490 133,546 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 637,724 ----------- HOTELS, RESTAURANTS & LEISURE 0.3% Carnival Corp. ............... 2,370 60,198 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 60,198 ----------- HOUSEHOLD DURABLES 10.4% Centex Corp. ................. 16,550 202,738 D.R. Horton, Inc. ............ 52,550 387,819 KB HOME....................... 33,900 565,791 Leggett & Platt, Inc. ........ 14,620 253,803
35 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P 500 PURE VALUE ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONCLUDED) Lennar Corp. -- Class A....... 39,400 $304,956 Whirlpool Corp. .............. 3,500 163,275 ----------- TOTAL HOUSEHOLD DURABLES 1,878,382 ----------- INDUSTRIAL CONGLOMERATES 0.7% Tyco International, Ltd. ..... 5,010 126,653 ----------- TOTAL INDUSTRIAL CONGLOMERATES 126,653 ----------- INSURANCE 6.2% Allstate Corp. ............... 5,475 144,485 Chubb Corp. .................. 1,930 100,013 Cincinnati Financial Corp. ... 5,430 141,126 Genworth Financial, Inc. -- Class A............ 7,811 37,805 Hartford Financial Services Group, Inc. ............... 1,740 17,957 Lincoln National Corp. ....... 2,708 46,686 Marsh & McLennan Cos., Inc. .. 7,245 212,423 MBIA, Inc. ................... 18,582 182,661 Travelers Cos., Inc.(The)..... 4,239 180,369 XL Capital, Ltd. -- Class A... 5,840 56,648 ----------- TOTAL INSURANCE 1,120,173 ----------- LEISURE EQUIPMENT & PRODUCTS 0.9% Eastman Kodak Co. ............ 8,240 75,643 Mattel, Inc. ................. 5,390 80,958 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 156,601 ----------- MEDIA 2.7% CBS Corp. -- Class B.......... 10,450 101,469 Gannett Co., Inc. ............ 9,750 107,250 New York Times Co. -- Class A.......................... 18,380 183,800 Time Warner, Inc. ............ 8,550 86,270 ----------- TOTAL MEDIA 478,789 ----------- MULTI-UTILITIES 12.7% Ameren Corp. ................. 4,360 141,482 CenterPoint Energy, Inc. ..... 10,990 126,605 CMS Energy Corp. ............. 9,020 92,455 Consolidated Edison, Inc. .... 6,210 269,017 Dominion Resources, Inc. ..... 2,540 92,151 DTE Energy Co. ............... 8,420 297,226 Integrys Energy Group, Inc. .. 9,420 449,052 NiSource, Inc. ............... 24,740 320,630 PG&E Corp. ................... 3,400 124,678 TECO Energy, Inc. ............ 16,290 187,987 Xcel Energy, Inc. ............ 10,550 183,781 ----------- TOTAL MULTI-UTILITIES 2,285,064 ----------- MULTILINE RETAIL 2.0% Big Lots, Inc.*............... 6,440 157,329 J.C. Penney Co., Inc. ........ 3,310 79,175 Macy's, Inc. ................. 9,710 119,336 ----------- TOTAL MULTILINE RETAIL 355,840 ----------- OIL, GAS & CONSUMABLE FUELS 2.6% Spectra Energy Corp. ......... 23,820 460,441 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 460,441 ----------- PAPER & FOREST PRODUCTS 2.0% International Paper Co. ...... 8,860 152,569 MeadWestvaco Corp. ........... 4,290 60,189 Weyerhaeuser Co. ............. 4,030 154,026 ----------- TOTAL PAPER & FOREST PRODUCTS 366,784 ----------- PHARMACEUTICALS 0.6% Pfizer, Inc. ................. 6,570 116,355 ----------- TOTAL PHARMACEUTICALS 116,355 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 3.3% Apartment Investment & Management Co. -- Class A.. 6,770 99,045 Developers Diversified Realty Corp. ..................... 4,107 54,089 Equity Residential............ 5,365 187,399 General Growth Properties, Inc. ...................... 2,856 11,824 HCP, Inc. .................... 5,049 151,117 Host Hotels & Resorts, Inc. .. 8,653 89,472 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 592,946 ----------- ROAD & RAIL 1.6% Ryder System, Inc. ........... 7,190 284,868 ----------- TOTAL ROAD & RAIL 284,868 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.8% Micron Technology, Inc.*...... 29,940 141,017 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 141,017 ----------- SPECIALTY RETAIL 2.0% AutoNation, Inc.*............. 29,260 201,016 Limited Brands, Inc. ......... 8,560 102,549 Office Depot, Inc.*........... 14,610 52,596 ----------- TOTAL SPECIALTY RETAIL 356,161 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.2% Jones Apparel Group, Inc. .... 30,810 342,299 Liz Claiborne, Inc. .......... 7,010 57,132 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 399,431 ----------- THRIFTS & MORTGAGE FINANCE 0.4% Sovereign Bancorp, Inc. ...... 26,030 75,487 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 75,487 ----------- TOBACCO 0.6% Reynolds American, Inc. ...... 2,050 100,368 ----------- TOTAL TOBACCO 100,368 ----------- WIRELESS TELECOMMUNICATION SERVICES 0.3% Sprint Nextel Corp. .......... 19,550 61,192 ----------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 61,192 ----------- TOTAL COMMON STOCKS (Cost $30,514,205) 17,864,683 ----------- SHORT TERM INVESTMENTS 0.4% SSgA Government Money Market Fund....................... 83,021 83,021 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $83,021) 83,021 ----------- TOTAL INVESTMENTS 99.7% (Cost $30,597,226) 17,947,704 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% 45,876 ----------- NET ASSETS--100.0% $17,993,580 -------------------------------------------------------
*Non-Income Producing Security. 36 See Notes to Financial Statements. RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.8% AEROSPACE & DEFENSE 2.3% General Dynamics Corp. ....... 1,900 $114,608 L-3 Communications Holdings, Inc. ...................... 1,916 155,522 Lockheed Martin Corp. ........ 1,925 163,721 Rockwell Collins, Inc. ....... 3,157 117,535 ----------- TOTAL AEROSPACE & DEFENSE 551,386 ----------- AIR FREIGHT & LOGISTICS 1.4% C.H. Robinson Worldwide, Inc. ...................... 3,405 176,311 Expeditors International of Washington, Inc. .......... 5,440 177,616 ----------- TOTAL AIR FREIGHT & LOGISTICS 353,927 ----------- AUTO COMPONENTS 0.4% Goodyear Tire & Rubber Co.(The)*.................. 11,560 103,115 ----------- TOTAL AUTO COMPONENTS 103,115 ----------- AUTOMOBILES 0.6% Harley-Davidson, Inc. ........ 6,188 151,482 ----------- TOTAL AUTOMOBILES 151,482 ----------- BEVERAGES 2.2% Anheuser-Busch Cos., Inc. .... 4,463 276,840 Pepsi Bottling Group, Inc. ... 5,724 132,339 PepsiCo, Inc. ................ 2,215 126,277 ----------- TOTAL BEVERAGES 535,456 ----------- BIOTECHNOLOGY 4.6% Amgen, Inc.*.................. 5,288 316,698 Biogen Idec, Inc.*............ 3,883 165,222 Celgene Corp.*................ 3,773 242,453 Genzyme Corp.*................ 1,874 136,577 Gilead Sciences, Inc.*........ 5,747 263,500 ----------- TOTAL BIOTECHNOLOGY 1,124,450 ----------- CAPITAL MARKETS 0.9% Federated Investors, Inc. -- Class B............ 5,788 140,070 Franklin Resources, Inc. ..... 1,331 90,508 ----------- TOTAL CAPITAL MARKETS 230,578 ----------- CHEMICALS 1.4% CF Industries Holdings, Inc. ...................... 1,474 94,616 Ecolab, Inc. ................. 3,347 124,709 Sigma-Aldrich Corp. .......... 2,989 131,098 ----------- TOTAL CHEMICALS 350,423 ----------- COMMERCIAL SERVICES & SUPPLIES 1.0% Equifax, Inc. ................ 4,147 108,154 Pitney Bowes, Inc. ........... 5,046 125,040 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 233,194 ----------- COMMUNICATIONS EQUIPMENT 2.4% Cisco Systems, Inc.*.......... 8,677 154,190 Harris Corp. ................. 2,963 106,520 Motorola, Inc. ............... 15,765 84,658 QUALCOMM, Inc. ............... 6,004 229,713 ----------- TOTAL COMMUNICATIONS EQUIPMENT 575,081 ----------- COMPUTERS & PERIPHERALS 3.4% Apple, Inc.*.................. 1,700 182,903 Dell, Inc.*................... 12,767 155,119 Lexmark International, Inc. -- Class A*........... 7,288 188,249 NetApp, Inc.*................. 7,740 104,722 QLogic Corp.*................. 10,403 125,044 SanDisk Corp.*................ 8,119 72,178 ----------- TOTAL COMPUTERS & PERIPHERALS 828,215 ----------- CONSTRUCTION & ENGINEERING 0.2% Jacobs Engineering Group, Inc.*...................... 1,158 42,186 ----------- TOTAL CONSTRUCTION & ENGINEERING 42,186 ----------- CONSUMER FINANCE 1.0% American Express Co. ......... 2,847 78,292 SLM Corp.*.................... 15,307 163,326 ----------- TOTAL CONSUMER FINANCE 241,618 ----------- CONTAINERS & PACKAGING 1.4% Ball Corp. ................... 6,672 228,182 Pactiv Corp.*................. 5,046 118,884 ----------- TOTAL CONTAINERS & PACKAGING 347,066 ----------- DIVERSIFIED CONSUMER SERVICES 2.6% Apollo Group, Inc. -- Class A*......................... 5,440 378,134 H&R Block, Inc. .............. 12,534 247,171 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 625,305 ----------- DIVERSIFIED FINANCIAL SERVICES 3.2% CME Group, Inc. .............. 448 126,403 IntercontinentalExchange, Inc.*...................... 2,289 195,847 Leucadia National Corp. ...... 5,462 146,600 Moody's Corp. ................ 10,345 264,832 NYSE Euronext................. 1,432 43,218 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 776,900 ----------- ELECTRICAL EQUIPMENT 0.2% Rockwell Automation, Inc. .... 2,083 57,637 ----------- TOTAL ELECTRICAL EQUIPMENT 57,637 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.6% Amphenol Corp. -- Class A..... 4,827 138,294 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 138,294 ----------- ENERGY EQUIPMENT & SERVICES 2.9% Baker Hughes, Inc. ........... 1,531 53,508 BJ Services Co. .............. 8,493 109,135 Cameron International Corp.*.. 2,305 55,919 Halliburton Co. .............. 5,730 113,397 Schlumberger, Ltd. ........... 2,847 147,048 Smith International, Inc. .... 2,357 81,269 Transocean, Inc.*............. 1,657 136,421 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 696,697 ----------- FOOD PRODUCTS 2.6% Campbell Soup Co. ............ 5,630 213,658 Hershey Co.(The).............. 5,698 212,194 Kellogg Co. .................. 4,189 211,209 ----------- TOTAL FOOD PRODUCTS 637,061 ----------- GAS UTILITIES 0.4% Questar Corp. ................ 2,999 103,346 ----------- TOTAL GAS UTILITIES 103,346 -----------
37 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONTINUED) HEALTH CARE EQUIPMENT & SUPPLIES 7.2% Becton, Dickinson & Co. ...... 1,706 $118,396 C.R. Bard, Inc. .............. 1,642 144,906 Hospira, Inc.*................ 4,741 131,895 Intuitive Surgical, Inc.*..... 1,400 241,906 Medtronic, Inc. .............. 4,557 183,784 St Jude Medical, Inc.*........ 5,972 227,115 Stryker Corp. ................ 3,089 165,138 Varian Medical Systems, Inc.*...................... 6,214 282,799 Zimmer Holdings, Inc.*........ 5,478 254,344 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,750,283 ----------- HEALTH CARE PROVIDERS & SERVICES 5.4% Coventry Health Care, Inc.*... 5,340 70,435 DaVita, Inc.*................. 5,531 313,884 Express Scripts, Inc.*........ 5,040 305,474 Laboratory Corp. of America Holdings*.................. 2,825 173,709 Patterson Cos., Inc.*......... 6,814 172,599 Quest Diagnostics, Inc. ...... 3,499 163,753 UnitedHealth Group, Inc. ..... 5,304 125,864 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,325,718 ----------- HEALTH CARE TECHNOLOGY 0.7% IMS Health, Inc. ............. 12,276 176,038 ----------- TOTAL HEALTH CARE TECHNOLOGY 176,038 ----------- HOTELS, RESTAURANTS & LEISURE 2.5% Darden Restaurants, Inc. ..... 8,056 178,601 International Game Technology................. 4,398 61,572 Starbucks Corp.*.............. 14,375 188,744 Yum! Brands, Inc. ............ 6,320 183,343 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 612,260 ----------- HOUSEHOLD DURABLES 1.0% Black & Decker Corp. ......... 3,715 188,053 Harman International Industries, Inc. .......... 3,305 60,713 ----------- TOTAL HOUSEHOLD DURABLES 248,766 ----------- HOUSEHOLD PRODUCTS 1.9% Clorox Co. ................... 4,567 277,719 Colgate-Palmolive Co. ........ 2,857 179,306 ----------- TOTAL HOUSEHOLD PRODUCTS 457,025 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.5% AES Corp.(The)*............... 9,845 78,465 Constellation Energy Group, Inc. ...................... 2,247 54,400 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 132,865 ----------- INSURANCE 1.1% Progressive Corp. ............ 18,216 259,942 ----------- TOTAL INSURANCE 259,942 ----------- INTERNET & CATALOG RETAIL 1.5% Amazon.com, Inc.*............. 4,557 260,843 Expedia, Inc.*................ 12,134 115,394 ----------- TOTAL INTERNET & CATALOG RETAIL 376,237 ----------- INTERNET SOFTWARE & SERVICES 2.7% Akamai Technologies, Inc.*.... 6,162 88,609 eBay, Inc.*................... 8,288 126,558 Google, Inc. -- Class A*...... 716 257,302 Yahoo!, Inc.*................. 15,365 196,979 ----------- TOTAL INTERNET SOFTWARE & SERVICES 669,448 ----------- IT SERVICES 2.9% Cognizant Technology Solutions Corp. -- Class A*.......... 11,209 215,213 Fiserv, Inc.*................. 4,647 155,024 Mastercard, Inc. -- Class A... 858 126,829 Total System Services, Inc. .. 8,239 113,204 Western Union Co. ............ 5,914 90,248 ----------- TOTAL IT SERVICES 700,518 ----------- LIFE SCIENCES TOOLS & SERVICES 0.7% Waters Corp.*................. 3,673 160,877 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 160,877 ----------- MACHINERY 2.2% Caterpillar, Inc. ............ 3,415 130,351 Cummins, Inc. ................ 3,947 102,030 Danaher Corp. ................ 2,383 141,169 ITT Corp. .................... 2,373 105,598 Terex Corp.*.................. 2,767 46,181 ----------- TOTAL MACHINERY 525,329 ----------- MEDIA 0.8% McGraw-Hill Cos., Inc. ....... 3,689 99,013 Omnicom Group, Inc. .......... 3,531 104,305 ----------- TOTAL MEDIA 203,318 ----------- METALS & MINING 2.4% Freeport-McMoRan Copper & Gold, Inc. ................ 3,341 97,223 Nucor Corp. .................. 6,014 243,627 Titanium Metals Corp. ........ 12,744 118,647 United States Steel Corp. .... 3,551 130,961 ----------- TOTAL METALS & MINING 590,458 ----------- MULTILINE RETAIL 1.7% Kohl's Corp.*................. 4,263 149,759 Sears Holdings Corp.*......... 4,666 269,415 ----------- TOTAL MULTILINE RETAIL 419,174 ----------- OIL, GAS & CONSUMABLE FUELS 9.1% Apache Corp. ................. 2,821 232,253 Cabot Oil & Gas Corp. ........ 2,873 80,645 Chesapeake Energy Corp. ...... 6,488 142,541 ConocoPhillips................ 3,363 174,943 CONSOL Energy, Inc. .......... 2,047 64,255 Devon Energy Corp. ........... 2,299 185,897 EOG Resources, Inc. .......... 3,283 265,661 Exxon Mobil Corp. ............ 2,499 185,226 Murphy Oil Corp. ............. 3,099 156,934 Pioneer Natural Resources Co. ....................... 2,721 75,726 Southwestern Energy Co.*...... 3,431 122,212 Sunoco, Inc. ................. 5,936 181,048 Valero Energy Corp. .......... 4,357 89,667 XTO Energy, Inc. ............. 7,456 268,043 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 2,225,051 -----------
38 See Notes to Financial Statements. RYDEX S&P 500 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) PERSONAL PRODUCTS 1.3% Avon Products, Inc. .......... 6,278 $155,883 Estee Lauder Cos., Inc -- Class A............. 4,215 151,908 ----------- TOTAL PERSONAL PRODUCTS 307,791 ----------- PHARMACEUTICALS 2.4% Barr Pharmaceuticals, Inc.*... 3,699 237,698 Forest Laboratories, Inc.*.... 8,829 205,098 Johnson & Johnson............. 2,531 155,251 ----------- TOTAL PHARMACEUTICALS 598,047 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.6% CB Richard Ellis Group, Inc. -- Class A*........... 19,906 139,541 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 139,541 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.6% MEMC Electronic Materials, Inc.*...................... 1,721 31,632 National Semiconductor Corp. ..................... 5,688 74,911 NVIDIA Corp.*................. 4,731 41,444 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 147,987 ----------- SOFTWARE 5.4% Adobe Systems, Inc.*.......... 5,930 157,975 Autodesk, Inc.*............... 5,156 109,874 BMC Software, Inc.*........... 2,709 69,946 Citrix Systems, Inc.*......... 4,646 119,728 Electronic Arts, Inc.*........ 2,725 62,076 Intuit, Inc.*................. 9,319 233,534 Microsoft Corp. .............. 5,824 130,050 Oracle Corp.*................. 10,813 197,770 Salesforce.com, Inc.*......... 3,299 102,137 Symantec Corp.*............... 11,061 139,147 ----------- TOTAL SOFTWARE 1,322,237 ----------- SPECIALTY RETAIL 5.7% Abercrombie & Fitch Co. -- Class A............. 4,183 121,140 AutoZone, Inc.*............... 2,399 305,369 Bed Bath & Beyond, Inc.*...... 10,477 269,992 Best Buy Co., Inc. ........... 4,205 112,736 GameStop Corp. -- Class A*.... 2,725 74,638 Lowe's Cos., Inc. ............ 10,319 223,922 TJX Cos., Inc. ............... 10,235 273,888 ----------- TOTAL SPECIALTY RETAIL 1,381,685 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.2% Coach, Inc.*.................. 13,824 284,774 NIKE, Inc. -- Class B......... 2,557 147,360 Polo Ralph Lauren Corp. ...... 2,083 98,255 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 530,389 ----------- TOBACCO 1.1% UST, Inc. .................... 3,847 260,019 ----------- TOTAL TOBACCO 260,019 ----------- TRADING COMPANIES & DISTRIBUTORS 0.5% Fastenal Co. ................. 2,979 119,935 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 119,935 ----------- TOTAL COMMON STOCKS (Cost $38,840,061) 24,344,355 ----------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund....................... 42,242 42,242 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $42,242) 42,242 ----------- TOTAL INVESTMENTS 100.0% (Cost $38,882,303) 24,386,597 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 11,189 ----------- NET ASSETS--100.0% $24,397,786 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. 39 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.7% AIRLINES 2.4% Alaska Air Group, Inc.*....... 6,959 $171,887 JetBlue Airways Corp.*........ 12,618 70,030 ----------- TOTAL AIRLINES 241,917 ----------- AUTO COMPONENTS 3.2% ArvinMeritor, Inc. ........... 36,215 214,393 Lear Corp.*................... 6,059 12,179 Modine Manufacturing Co. ..... 12,768 94,483 ----------- TOTAL AUTO COMPONENTS 321,055 ----------- CAPITAL MARKETS 0.4% Apollo Investment Corp. ...... 3,126 41,204 ----------- TOTAL CAPITAL MARKETS 41,204 ----------- CHEMICALS 5.6% Cabot Corp. .................. 1,740 46,023 Chemtura Corp. ............... 23,937 41,411 Ferro Corp. .................. 5,949 92,090 Lubrizol Corp. ............... 960 36,077 Olin Corp. ................... 7,099 128,918 RPM International, Inc. ...... 6,599 93,706 Sensient Technologies Corp. .. 1,990 50,208 Valspar Corp. ................ 4,080 83,436 ----------- TOTAL CHEMICALS 571,869 ----------- COMMERCIAL BANKS 6.0% Associated Banc-Corp. ........ 4,210 92,873 Bancorpsouth, Inc. ........... 1,870 45,385 Colonial BancGroup, Inc. ..... 11,698 47,494 FirstMerit Corp. ............. 5,289 123,339 PacWest Bancorp............... 1,880 46,981 TCF Financial Corp. .......... 6,729 119,372 Webster Financial Corp. ...... 4,240 78,610 Wilmington Trust Corp. ....... 1,700 49,062 ----------- TOTAL COMMERCIAL BANKS 603,116 ----------- COMMERCIAL SERVICES & SUPPLIES 2.9% Kelly Services, Inc. -- Class A.......................... 16,718 238,065 Manpower, Inc. ............... 1,840 57,279 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 295,344 ----------- COMPUTERS & PERIPHERALS 3.1% Diebold, Inc. ................ 2,100 62,412 Imation Corp. ................ 12,108 149,171 Palm, Inc.*................... 25,556 101,968 ----------- TOTAL COMPUTERS & PERIPHERALS 313,551 ----------- CONSUMER FINANCE 0.9% AmeriCredit Corp.*............ 15,718 92,107 ----------- TOTAL CONSUMER FINANCE 92,107 ----------- CONTAINERS & PACKAGING 0.6% Sonoco Products Co. .......... 2,580 64,964 ----------- TOTAL CONTAINERS & PACKAGING 64,964 ----------- DIVERSIFIED CONSUMER SERVICES 0.4% Regis Corp. .................. 3,080 38,100 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 38,100 ----------- ELECTRIC UTILITIES 5.0% Great Plains Energy, Inc. .... 6,009 116,815 Hawaiian Electric Industries, Inc. ...................... 6,879 183,119 IDACORP, Inc. ................ 2,830 75,448 Sierra Pacific Resources...... 3,500 29,015 Westar Energy, Inc. .......... 5,139 100,159 ----------- TOTAL ELECTRIC UTILITIES 504,556 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.8% Arrow Electronics, Inc.*...... 2,010 35,075 Ingram Micro, Inc. -- Class A*......................... 9,849 131,287 Tech Data Corp.*.............. 3,600 77,220 Vishay Intertechnology, Inc.*...................... 9,669 41,673 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 285,255 ----------- FOOD & STAPLES RETAILING 0.4% Ruddick Corp. ................ 1,520 43,533 ----------- TOTAL FOOD & STAPLES RETAILING 43,533 ----------- FOOD PRODUCTS 0.9% J.M. Smucker Co.(The)......... 1,250 55,700 Smithfield Foods, Inc.*....... 3,600 37,872 ----------- TOTAL FOOD PRODUCTS 93,572 ----------- GAS UTILITIES 4.5% AGL Resources, Inc. .......... 3,760 114,304 Oneok, Inc. .................. 3,220 102,718 UGI Corp. .................... 3,529 84,237 WGL Holdings, Inc. ........... 4,729 152,227 ----------- TOTAL GAS UTILITIES 453,486 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 0.5% Teleflex, Inc. ............... 940 49,811 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 49,811 ----------- HEALTH CARE PROVIDERS & SERVICES 3.4% Health Management Associates, Inc. -- Class A*........... 37,665 79,096 Kindred Healthcare, Inc.*..... 7,559 109,530 Omnicare, Inc. ............... 5,479 151,056 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 339,682 ----------- HOTELS, RESTAURANTS & LEISURE 0.8% Bob Evans Farms, Inc. ........ 3,340 69,739 Boyd Gaming Corp. ............ 1,590 10,812 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 80,551 ----------- HOUSEHOLD DURABLES 4.1% Furniture Brands International, Inc. ....... 37,135 211,298 Ryland Group, Inc. ........... 10,909 204,980 ----------- TOTAL HOUSEHOLD DURABLES 416,278 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.6% Black Hills Corp. ............ 2,260 57,065 ----------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 57,065 ----------- INSURANCE 10.1% American Financial Group, Inc. ...................... 4,120 93,648 Arthur J. Gallagher & Co. .... 3,120 76,003 Everest Re Group, Ltd. ....... 750 56,025 Fidelity National Financial, Inc. -- Class A............ 22,487 202,608 First American Corp. ......... 7,259 148,156
40 See Notes to Financial Statements. RYDEX S&P MIDCAP 400 PURE VALUE ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) Hanover Insurance Group, Inc. ...................... 1,830 $71,827 Horace Mann Educators Corp. .. 4,150 33,034 Mercury General Corp. ........ 2,480 127,398 Old Republic International Corp. ..................... 14,078 129,658 Protective Life Corp. ........ 3,560 29,726 Unitrin, Inc. ................ 2,860 60,060 ----------- TOTAL INSURANCE 1,028,143 ----------- IT SERVICES 2.1% Acxiom Corp. ................. 11,128 87,466 SAIC, Inc.*................... 6,709 123,915 ----------- TOTAL IT SERVICES 211,381 ----------- MACHINERY 2.4% Federal Signal Corp. ......... 16,228 138,100 Timken Co. ................... 2,760 43,829 Trinity Industries, Inc. ..... 3,810 64,313 ----------- TOTAL MACHINERY 246,242 ----------- MEDIA 1.7% Belo Corp. -- Class A......... 10,389 22,129 Media General, Inc. -- Class A.......................... 13,788 105,202 Scholastic Corp. ............. 2,410 44,754 ----------- TOTAL MEDIA 172,085 ----------- METALS & MINING 0.7% Worthington Industries, Inc. ...................... 6,069 73,253 ----------- TOTAL METALS & MINING 73,253 ----------- MULTI-UTILITIES 6.5% Alliant Energy Corp. ......... 2,500 73,450 NSTAR......................... 2,670 88,243 OGE Energy Corp. ............. 2,950 80,535 PNM Resources, Inc. .......... 9,619 93,785 Puget Energy, Inc. ........... 3,630 85,051 SCANA Corp. .................. 2,960 97,414 Vectren Corp. ................ 5,389 135,803 ----------- TOTAL MULTI-UTILITIES 654,281 ----------- MULTILINE RETAIL 0.9% 99 Cents Only Stores*......... 7,259 88,560 ----------- TOTAL MULTILINE RETAIL 88,560 ----------- PAPER & FOREST PRODUCTS 0.5% Louisiana-Pacific Corp. ...... 11,249 53,995 ----------- TOTAL PAPER & FOREST PRODUCTS 53,995 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 10.3% BRE Properties, Inc. ......... 1,380 48,038 Camden Property Trust......... 2,100 70,791 Cousins Properties, Inc. ..... 3,600 52,128 Duke Realty Corp. ............ 4,260 60,109 Equity One, Inc. ............. 3,400 59,398 Health Care REIT, Inc. ....... 2,160 96,142 Highwoods Properties, Inc. ... 5,059 125,564 Hospitality Properties Trust.. 4,929 50,029 Liberty Property Trust........ 4,420 105,417 Mack-Cali Realty Corp. ....... 4,349 98,809 Nationwide Health Properties, Inc. ...................... 2,960 88,326 Realty Income Corp. .......... 2,580 59,650 UDR, Inc. .................... 3,910 77,262 Weingarten Realty Investors... 2,490 50,920 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,042,583 ----------- ROAD & RAIL 2.2% Avis Budget Group, Inc.*...... 21,447 35,173 Werner Enterprises, Inc. ..... 4,789 93,960 YRC Worldwide, Inc.*.......... 20,357 93,235 ----------- TOTAL ROAD & RAIL 222,368 ----------- SPECIALTY RETAIL 6.6% Barnes & Noble, Inc. ......... 2,220 41,914 Borders Group, Inc. .......... 22,247 75,417 Collective Brands, Inc.*...... 7,299 93,354 Foot Locker, Inc. ............ 20,617 301,421 Rent-A-Center, Inc.*.......... 10,789 157,519 ----------- TOTAL SPECIALTY RETAIL 669,625 ----------- THRIFTS & MORTGAGE FINANCE 4.5% Astoria Financial Corp. ...... 3,330 63,337 First Niagara Financial Group, Inc. ...................... 12,588 198,513 New York Community Bancorp, Inc. ...................... 6,599 103,340 PMI Group, Inc.(The).......... 12,758 31,768 Washington Federal, Inc. ..... 3,070 54,093 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 451,051 ----------- TOBACCO 1.3% Universal Corp. .............. 3,340 132,231 ----------- TOTAL TOBACCO 132,231 ----------- TRADING COMPANIES & DISTRIBUTORS 1.4% GATX Corp. ................... 3,150 89,932 United Rentals, Inc.*......... 5,059 51,855 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 141,787 ----------- TOTAL COMMON STOCKS (Cost $16,967,222) 10,094,601 ----------- SHORT TERM INVESTMENTS 0.3% SSgA Government Money Market Fund....................... 31,649 31,649 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $31,649) 31,649 ----------- TOTAL INVESTMENTS 100.0% (Cost $16,998,871) 10,126,250 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (714) ----------- NET ASSETS--100.0% $10,125,536 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. 41 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.9% AEROSPACE & DEFENSE 1.2% Alliant Techsystems, Inc.*.... 2,480 $204,699 ----------- TOTAL AEROSPACE & DEFENSE 204,699 ----------- BEVERAGES 1.3% Hansen Natural Corp.*......... 9,151 231,703 ----------- TOTAL BEVERAGES 231,703 ----------- BIOTECHNOLOGY 1.7% United Therapeutics Corp.*.... 3,515 306,614 ----------- TOTAL BIOTECHNOLOGY 306,614 ----------- CAPITAL MARKETS 1.7% Affiliated Managers Group, Inc.*...................... 1,660 76,991 Eaton Vance Corp. ............ 4,715 103,730 SEI Investments Co. .......... 6,355 112,356 ----------- TOTAL CAPITAL MARKETS 293,077 ----------- CHEMICALS 0.7% Terra Industries, Inc. ....... 5,265 115,777 ----------- TOTAL CHEMICALS 115,777 ----------- COMMERCIAL SERVICES & SUPPLIES 6.5% Copart, Inc.*................. 3,420 119,358 Corporate Executive Board Co.(The)................... 3,730 111,266 Dun & Bradstreet Corp. ....... 2,250 165,802 Korn/Ferry International*..... 11,061 153,637 Mine Safety Appliances Co. ... 2,730 73,710 Navigant Consulting, Inc.*.... 16,996 274,825 Rollins, Inc. ................ 8,231 144,619 Stericycle, Inc.*............. 1,790 104,590 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,147,807 ----------- COMMUNICATIONS EQUIPMENT 2.5% F5 Networks, Inc.*............ 12,706 315,363 Plantronics, Inc. ............ 8,111 117,123 ----------- TOTAL COMMUNICATIONS EQUIPMENT 432,486 ----------- COMPUTERS & PERIPHERALS 1.0% Western Digital Corp.*........ 10,581 174,587 ----------- TOTAL COMPUTERS & PERIPHERALS 174,587 ----------- DIVERSIFIED CONSUMER SERVICES 7.1% Career Education Corp.*....... 11,651 184,202 Corinthian Colleges, Inc.*.... 15,906 227,138 ITT Educational Services, Inc.*...................... 3,085 270,400 Matthews International Corp. -- Class A........... 4,010 178,966 Sotheby's..................... 5,065 47,155 Strayer Education, Inc. ...... 1,520 343,931 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 1,251,792 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.0% FLIR Systems, Inc.*........... 8,456 271,438 Trimble Navigation, Ltd.*..... 3,525 72,509 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 343,947 ----------- ENERGY EQUIPMENT & SERVICES 2.5% FMC Technologies, Inc.*....... 3,405 119,141 Helix Energy Solutions Group, Inc.*...................... 7,320 77,299 Oceaneering International, Inc.*...................... 2,460 69,298 Unit Corp.*................... 4,760 178,691 ----------- TOTAL ENERGY EQUIPMENT & SERVICES 444,429 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 3.9% Gen-Probe, Inc.*.............. 3,235 152,239 Hologic, Inc.*................ 8,671 106,133 Idexx Laboratories, Inc.*..... 3,455 121,581 Kinetic Concepts, Inc.*....... 6,450 156,155 ResMed, Inc.*................. 4,285 146,804 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 682,912 ----------- HEALTH CARE PROVIDERS & SERVICES 5.3% Community Health Systems, Inc.*...................... 5,295 108,547 Henry Schein, Inc.*........... 2,295 107,429 Lincare Holdings, Inc.*....... 6,225 164,029 Psychiatric Solutions, Inc.*.. 12,826 426,977 VCA Antech, Inc.*............. 7,346 132,963 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 939,945 ----------- HEALTH CARE TECHNOLOGY 0.5% Cerner Corp.*................. 2,540 94,564 ----------- TOTAL HEALTH CARE TECHNOLOGY 94,564 ----------- HOTELS, RESTAURANTS & LEISURE 1.4% Cheesecake Factory, Inc.(The)*................. 7,230 63,624 Chipotle Mexican Grill, Inc. -- Class A*........... 1,915 97,186 Scientific Games Corp. -- Class A*.......... 5,175 93,150 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 253,960 ----------- HOUSEHOLD DURABLES 3.9% NVR, Inc.*.................... 710 348,049 Toll Brothers, Inc.*.......... 14,626 338,153 ----------- TOTAL HOUSEHOLD DURABLES 686,202 ----------- HOUSEHOLD PRODUCTS 1.7% Church & Dwight Co., Inc. .... 2,670 157,770 Energizer Holdings, Inc.*..... 2,900 141,694 ----------- TOTAL HOUSEHOLD PRODUCTS 299,464 ----------- INSURANCE 4.5% Brown & Brown, Inc. .......... 9,531 195,576 Philadelphia Consolidated Holding Co.*............... 6,405 374,628 W.R. Berkley Corp. ........... 8,506 223,453 ----------- TOTAL INSURANCE 793,657 ----------- INTERNET & CATALOG RETAIL 0.6% Priceline.com, Inc.*.......... 1,910 100,523 ----------- TOTAL INTERNET & CATALOG RETAIL 100,523 ----------- INTERNET SOFTWARE & SERVICES 2.2% Digital River, Inc.*.......... 12,741 315,722 ValueClick, Inc.*............. 9,531 70,529 ----------- TOTAL INTERNET SOFTWARE & SERVICES 386,251 -----------
42 See Notes to Financial Statements. RYDEX S&P MIDCAP 400 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS (CONCLUDED) IT SERVICES 3.7% Alliance Data Systems Corp.*.. 2,610 $130,918 DST Systems, Inc.*............ 4,105 166,581 Gartner, Inc.*................ 4,895 90,068 Global Payments, Inc. ........ 4,105 166,293 SRA International, Inc. -- Class A*........... 5,415 100,069 ----------- TOTAL IT SERVICES 653,929 ----------- LIFE SCIENCES TOOLS & SERVICES 4.2% Affymetrix, Inc.*............. 12,866 47,476 Charles River Laboratories International, Inc.*....... 1,520 54,462 Covance, Inc.*................ 1,300 65,000 Invitrogen Corp.*............. 7,760 223,410 Pharmaceutical Product Development, Inc. ......... 4,795 148,549 Techne Corp. ................. 2,965 204,644 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 743,541 ----------- MACHINERY 2.4% Donaldson Co., Inc. .......... 3,510 123,377 Graco, Inc. .................. 5,905 146,031 Joy Global, Inc. ............. 5,275 152,869 ----------- TOTAL MACHINERY 422,277 ----------- MEDIA 5.0% DreamWorks Animation SKG, Inc. -- Class A*........... 14,126 396,941 John Wiley & Sons, Inc.- Class A.......................... 3,905 135,816 Marvel Entertainment, Inc.*... 8,321 267,853 Valassis Communications, Inc.*...................... 16,701 74,152 ----------- TOTAL MEDIA 874,762 ----------- METALS & MINING 2.6% Cliffs Natural Resources, Inc. ...................... 7,150 192,979 Commercial Metals Co. ........ 11,071 122,888 Steel Dynamics, Inc. ......... 11,976 142,754 ----------- TOTAL METALS & MINING 458,621 ----------- MULTILINE RETAIL 1.4% Dollar Tree, Inc.*............ 6,625 251,883 ----------- TOTAL MULTILINE RETAIL 251,883 ----------- OIL, GAS & CONSUMABLE FUELS 5.5% Cimarex Energy Co. ........... 6,215 251,459 Denbury Resources, Inc.*...... 6,570 83,505 Encore Acquisition Co.*....... 13,076 407,317 Frontier Oil Corp. ........... 7,406 97,833 Newfield Exploration Co.*..... 3,300 75,834 Quicksilver Resources, Inc.*.. 5,295 55,439 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 971,387 ----------- PERSONAL PRODUCTS 0.9% NBTY, Inc.*................... 6,745 157,631 ----------- TOTAL PERSONAL PRODUCTS 157,631 ----------- PHARMACEUTICALS 2.8% Endo Pharmaceuticals Holdings, Inc.*...................... 11,271 208,514 Medicis Pharmaceutical Corp. -- Class A........... 4,475 63,858 Sepracor, Inc.*............... 16,106 214,532 ----------- TOTAL PHARMACEUTICALS 486,904 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.8% Jones Lang LaSalle, Inc. ..... 4,480 147,482 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 147,482 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.3% Cree, Inc.*................... 10,061 197,497 Silicon Laboratories, Inc.*... 7,750 201,190 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 398,687 ----------- SOFTWARE 4.4% ACI Worldwide, Inc.*.......... 12,716 174,209 Ansys, Inc.*.................. 3,545 101,493 Factset Research Systems, Inc. ...................... 4,205 163,112 Fair Isaac Corp. ............. 4,695 73,195 Macrovision Solutions Corp.*.. 6,600 73,128 McAfee, Inc.*................. 5,645 183,745 ----------- TOTAL SOFTWARE 768,882 ----------- SPECIALTY RETAIL 9.0% Advance Auto Parts, Inc. ..... 5,365 167,388 Aeropostale, Inc.*............ 14,086 341,022 American Eagle Outfitters, Inc. ...................... 8,916 99,146 Chico's FAS, Inc.*............ 38,134 129,656 Guess?, Inc. ................. 2,685 58,452 O'Reilly Automotive, Inc.*.... 4,725 128,095 Pacific Sunwear of California, Inc.*...................... 15,136 51,765 Ross Stores, Inc. ............ 8,971 293,262 Urban Outfitters, Inc.*....... 11,601 252,206 Williams-Sonoma, Inc. ........ 7,200 59,616 ----------- TOTAL SPECIALTY RETAIL 1,580,608 ----------- TEXTILES, APPAREL & LUXURY GOODS 2.7% Timberland Co. -- Class A*.... 12,516 151,444 Under Armour, Inc. -- Class A*......................... 7,080 184,080 Warnaco Group, Inc.*.......... 4,985 148,602 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 484,126 ----------- TOTAL COMMON STOCKS (Cost $26,673,089) 17,585,116 ----------- SHORT TERM INVESTMENTS 0.0%(A) SSgA Government Money Market Fund....................... 100 100 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $100) 100 ----------- TOTAL INVESTMENTS 99.9% (Cost $26,673,189) 17,585,216 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 10,628 ----------- NET ASSETS--100.0% $17,595,844 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. 43 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 99.5% AEROSPACE & DEFENSE 0.8% Applied Signal Technology, Inc. ...................... 11,920 $213,606 ----------- TOTAL AEROSPACE & DEFENSE 213,606 ----------- AUTO COMPONENTS 1.7% Standard Motor Products, Inc. ...................... 60,220 253,526 Superior Industries International, Inc. ....... 13,490 192,907 ----------- TOTAL AUTO COMPONENTS 446,433 ----------- AUTOMOBILES 0.3% Monaco Coach Corp. ........... 38,000 83,600 ----------- TOTAL AUTOMOBILES 83,600 ----------- BUILDING PRODUCTS 2.7% Gibraltar Industries, Inc. ... 17,470 231,477 Griffon Corp.*................ 21,220 179,097 NCI Building Systems, Inc.*... 3,260 60,669 Universal Forest Products, Inc. ...................... 8,750 206,937 ----------- TOTAL BUILDING PRODUCTS 678,180 ----------- CAPITAL MARKETS 1.4% SWS Group, Inc. .............. 18,680 346,701 ----------- TOTAL CAPITAL MARKETS 346,701 ----------- CHEMICALS 3.7% A. Schulman, Inc. ............ 9,880 176,951 Georgia Gulf Corp. ........... 71,180 163,714 Material Sciences Corp.*...... 13,380 65,964 PolyOne Corp.*................ 45,020 213,845 Quaker Chemical Corp. ........ 9,140 174,848 Stepan Co. ................... 4,340 155,502 ----------- TOTAL CHEMICALS 950,824 ----------- COMMERCIAL BANKS 11.2% Central Pacific Financial Corp. ..................... 14,200 221,520 Community Bank System, Inc. .. 6,910 172,405 First BanCorp. ............... 48,090 491,480 First Commonwealth Financial Corp. ..................... 14,220 157,273 First Financial Bancorp....... 13,750 184,938 First Midwest Bancorp, Inc. .. 2,120 47,085 Hanmi Financial Corp. ........ 17,440 69,760 Independent Bank Corp. ....... 28,490 104,558 Irwin Financial Corp. ........ 30,400 66,880 National Penn Bancshares, Inc. ...................... 8,210 139,077 Old National Bancorp.......... 9,510 180,119 Provident Bankshares Corp. ... 9,700 103,499 South Financial Group, Inc. .. 12,110 70,359 Sterling Bancorp.............. 10,640 166,835 Sterling Financial Corp. ..... 8,360 70,976 Susquehanna Bancshares, Inc. ...................... 11,050 171,165 Umpqua Holdings Corp. ........ 15,650 266,363 United Bankshares, Inc. ...... 2,320 74,008 Whitney Holding Corp. ........ 4,910 93,290 ----------- TOTAL COMMERCIAL BANKS 2,851,590 ----------- COMMERCIAL SERVICES & SUPPLIES 2.9% ABM Industries, Inc. ......... 8,840 144,357 CDI Corp. .................... 5,180 67,340 Spherion Corp.*............... 41,850 133,083 Standard Register Co.(The).... 24,350 197,965 United Stationers, Inc.*...... 1,550 57,955 Volt Information Sciences, Inc.*...................... 19,450 148,793 ----------- TOTAL COMMERCIAL SERVICES & SUPPLIES 749,493 ----------- COMMUNICATIONS EQUIPMENT 0.6% Black Box Corp. .............. 2,570 78,154 Symmetricom, Inc.*............ 16,920 75,294 ----------- TOTAL COMMUNICATIONS EQUIPMENT 153,448 ----------- CONSTRUCTION & ENGINEERING 0.2% Insituform Technologies, Inc. -- Class A*........... 4,530 60,838 ----------- TOTAL CONSTRUCTION & ENGINEERING 60,838 ----------- CONTAINERS & PACKAGING 1.0% Rock-Tenn Co. -- Class A...... 8,070 245,409 ----------- TOTAL CONTAINERS & PACKAGING 245,409 ----------- DISTRIBUTORS 0.2% Audiovox Corp. -- Class A*.... 9,250 54,483 ----------- TOTAL DISTRIBUTORS 54,483 ----------- DIVERSIFIED CONSUMER SERVICES 0.1% CPI Corp. .................... 4,140 30,222 ----------- TOTAL DIVERSIFIED CONSUMER SERVICES 30,222 ----------- DIVERSIFIED FINANCIAL SERVICES 0.4% Financial Federal Corp. ...... 4,190 96,999 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 96,999 ----------- ELECTRIC UTILITIES 2.3% Allete, Inc. ................. 3,570 124,950 Central Vermont Public Service Corp. ..................... 4,840 96,364 Cleco Corp. .................. 4,210 96,872 UIL Holdings Corp. ........... 4,110 135,630 Unisource Energy Corp. ....... 4,720 130,178 ----------- TOTAL ELECTRIC UTILITIES 583,994 ----------- ELECTRICAL EQUIPMENT 0.7% AO Smith Corp. ............... 4,170 131,563 C&D Technologies, Inc.*....... 14,520 50,820 ----------- TOTAL ELECTRICAL EQUIPMENT 182,383 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 2.7% Benchmark Electronics, Inc.*.. 5,850 70,141 CTS Corp. .................... 12,040 84,160 Gerber Scientific, Inc.*...... 8,840 42,255 Insight Enterprises, Inc.*.... 8,600 83,678 Methode Electronics, Inc. .... 5,610 42,580
44 See Notes to Financial Statements. RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONTINUED) Park Electrochemical Corp. ... 4,130 $89,291 SYNNEX Corp.*................. 18,660 287,924 ----------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 700,029 ----------- FOOD & STAPLES RETAILING 2.5% Great Atlantic & Pacific Tea Co., Inc.*................. 2,460 20,344 Nash Finch Co. ............... 9,260 365,122 Spartan Stores, Inc. ......... 9,810 264,772 ----------- TOTAL FOOD & STAPLES RETAILING 650,238 ----------- FOOD PRODUCTS 0.3% Lance, Inc. .................. 3,820 79,036 ----------- TOTAL FOOD PRODUCTS 79,036 ----------- GAS UTILITIES 5.1% Atmos Energy Corp. ........... 13,360 324,247 Laclede Group, Inc. .......... 7,770 406,527 New Jersey Resources Corp. ... 3,830 142,629 Northwest Natural Gas Co. .... 1,600 81,408 Piedmont Natural Gas Co., Inc. ...................... 4,500 148,140 Southwest Gas Corp. .......... 7,400 193,288 ----------- TOTAL GAS UTILITIES 1,296,239 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 0.5% Datascope Corp. .............. 2,660 133,452 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 133,452 ----------- HEALTH CARE PROVIDERS & SERVICES 1.2% Gentiva Health Services, Inc.*...................... 3,450 93,667 MedCath Corp.*................ 4,240 65,381 Owens & Minor, Inc. .......... 3,200 138,464 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 297,512 ----------- HOTELS, RESTAURANTS & LEISURE 1.6% CKE Restaurants, Inc. ........ 5,040 42,790 Landry's Restaurants, Inc. ... 8,720 109,436 O'Charleys, Inc. ............. 16,700 125,250 Ruby Tuesday, Inc.*........... 34,010 81,964 Steak n Shake Co.(The)*....... 9,170 47,225 ----------- TOTAL HOTELS, RESTAURANTS & LEISURE 406,665 ----------- HOUSEHOLD DURABLES 5.4% Bassett Furniture Industries, Inc. ...................... 49,830 219,750 Ethan Allen Interiors, Inc. .. 3,890 69,592 La-Z-Boy, Inc. ............... 63,900 369,342 Libbey, Inc. ................. 9,940 36,381 M/I Homes, Inc. .............. 29,030 395,098 National Presto Industries, Inc. ...................... 4,210 278,913 ----------- TOTAL HOUSEHOLD DURABLES 1,369,076 ----------- HOUSEHOLD PRODUCTS 0.8% Central Garden & Pet Co. -- Class A*............ 62,760 199,577 Spectrum Brands, Inc.*........ 23,620 17,242 ----------- TOTAL HOUSEHOLD PRODUCTS 216,819 ----------- INDUSTRIAL CONGLOMERATES 2.1% Standex International Corp. .. 15,860 409,347 Tredegar Corp. ............... 9,100 133,952 ----------- TOTAL INDUSTRIAL CONGLOMERATES 543,299 ----------- INSURANCE 4.1% LandAmerica Financial Group, Inc. ...................... 16,590 163,411 Presidential Life Corp. ...... 10,440 97,927 Safety Insurance Group, Inc. ...................... 6,710 254,913 Selective Insurance Group, Inc. ...................... 5,760 136,800 Stewart Information Services Corp. ..................... 19,140 317,724 United Fire & Casualty Co. ... 3,110 72,059 ----------- TOTAL INSURANCE 1,042,834 ----------- IT SERVICES 1.4% Ciber, Inc.*.................. 22,330 120,582 Gevity HR, Inc. .............. 66,580 227,038 ----------- TOTAL IT SERVICES 347,620 ----------- LEISURE EQUIPMENT & PRODUCTS 1.6% Arctic Cat, Inc. ............. 27,520 208,602 Brunswick Corp. .............. 20,970 72,766 Nautilus, Inc.*............... 49,780 121,463 ----------- TOTAL LEISURE EQUIPMENT & PRODUCTS 402,831 ----------- LIFE SCIENCES TOOLS & SERVICES 0.4% Cambrex Corp.*................ 24,260 109,170 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 109,170 ----------- MACHINERY 2.7% Briggs & Stratton Corp. ...... 8,650 136,324 Lydall, Inc.*................. 12,970 86,250 Mueller Industries, Inc. ..... 3,100 70,897 Wabash National Corp. ........ 63,420 383,057 ----------- TOTAL MACHINERY 676,528 ----------- MEDIA 0.5% Live Nation, Inc.*............ 11,880 133,650 ----------- TOTAL MEDIA 133,650 ----------- METALS & MINING 0.2% AM Castle & Co. .............. 4,310 52,453 ----------- TOTAL METALS & MINING 52,453 ----------- MULTI-UTILITIES 1.6% Avista Corp. ................. 8,050 159,873 CH Energy Group, Inc. ........ 5,750 237,072 ----------- TOTAL MULTI-UTILITIES 396,945 ----------- MULTILINE RETAIL 1.9% Fred's, Inc. -- Class A....... 25,440 311,640 Tuesday Morning Corp.*........ 71,810 160,854 ----------- TOTAL MULTILINE RETAIL 472,494 -----------
45 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P SMALLCAP 600 PURE VALUE ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS (CONCLUDED) OIL, GAS & CONSUMABLE FUELS 0.2% Southern Union Co. ........... 3,070 $52,865 ----------- TOTAL OIL, GAS & CONSUMABLE FUELS 52,865 ----------- PAPER & FOREST PRODUCTS 1.3% Schweitzer-Mauduit International, Inc. ....... 4,130 69,054 Wausau Paper Corp. ........... 28,520 264,095 ----------- TOTAL PAPER & FOREST PRODUCTS 333,149 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 8.0% BioMed Realty Trust, Inc. .... 8,090 113,664 Colonial Properties Trust..... 15,830 166,848 DiamondRock Hospitality Co. .. 10,000 51,800 Entertainment Properties Trust...................... 2,480 92,876 Home Properties, Inc. ........ 3,280 132,807 Inland Real Estate Corp. ..... 7,620 87,325 Kite Realty Group Trust....... 10,270 62,442 Lexington Realty Trust........ 12,640 101,499 LTC Properties, Inc. ......... 4,610 111,424 Medical Properties Trust, Inc. ...................... 17,970 132,619 Mid-America Apartment Communities, Inc. ......... 3,960 139,550 National Retail Properties, Inc. ...................... 6,310 112,507 Parkway Properties, Inc. ..... 5,570 96,083 Pennsylvania Real Estate Investment Trust........... 9,600 121,440 Post Properties, Inc. ........ 4,094 91,378 PS Business Parks, Inc. ...... 1,300 58,851 Senior Housing Properties Trust...................... 6,200 118,854 Sovran Self Storage, Inc. .... 3,270 106,112 Urstadt Biddle Properties, Inc -- Class A............ 9,160 150,041 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 2,048,120 ----------- ROAD & RAIL 1.7% Arkansas Best Corp. .......... 14,730 429,969 ----------- TOTAL ROAD & RAIL 429,969 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.2% Photronics, Inc.*............. 16,370 11,295 Rudolph Technologies, Inc.*... 8,570 28,710 ----------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 40,005 ----------- SPECIALTY RETAIL 15.8% Big 5 Sporting Goods Corp. ... 7,300 45,844 Brown Shoe Co., Inc. ......... 12,450 131,223 Cabela's, Inc.*............... 5,020 39,909 Cato Corp. -- Class A......... 14,770 229,231 Finish Line, Inc. -- Class A.. 155,009 1,483,436 Group 1 Automotive, Inc. ..... 15,290 153,665 Haverty Furniture Cos., Inc. ...................... 44,380 436,699 Jo-Ann Stores, Inc.*.......... 23,020 441,063 Lithia Motors, Inc. -- Class A.......................... 36,390 149,199 MarineMax, Inc.*.............. 16,680 38,698 OfficeMax, Inc. .............. 23,820 191,751 PEP Boys-Manny Moe & Jack..... 31,550 152,071 Sonic Automotive, Inc. -- Class A............ 18,080 92,750 Stein Mart, Inc. ............. 112,369 241,593 Zale Corp.*................... 11,330 193,290 ----------- TOTAL SPECIALTY RETAIL 4,020,422 ----------- TEXTILES, APPAREL & LUXURY GOODS 0.6% Oxford Industries, Inc. ...... 11,590 156,117 ----------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 156,117 ----------- THRIFTS & MORTGAGE FINANCE 3.2% Anchor BanCorp Wisconsin, Inc. ...................... 2,860 16,302 Bank Mutual Corp. ............ 9,090 104,808 BankAtlantic Bancorp, Inc -- A................... 14,170 87,429 Brookline Bancorp, Inc. ...... 9,620 112,554 Corus Bankshares, Inc. ....... 42,470 93,434 Dime Community Bancshares..... 7,180 119,906 FirstFed Financial Corp.*..... 4,550 40,722 Flagstar Bancorp, Inc. ....... 69,070 131,233 Guaranty Financial Group, Inc.*...................... 7,950 16,138 TrustCo Bank Corp. ........... 8,270 100,646 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 823,172 ----------- TOBACCO 0.6% Alliance One International, Inc.*...................... 48,160 160,854 ----------- TOTAL TOBACCO 160,854 ----------- TRADING COMPANIES & DISTRIBUTORS 1.1% Lawson Products, Inc. ........ 2,900 86,420 Watsco, Inc. ................. 4,600 189,014 ----------- TOTAL TRADING COMPANIES & DISTRIBUTORS 275,434 ----------- TOTAL COMMON STOCKS (Cost $35,116,408) 25,395,200 ----------- SHORT TERM INVESTMENTS 0.4% SSgA Government Money Market Fund....................... 111,994 111,994 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $111,994) 111,994 ----------- TOTAL INVESTMENTS 99.9% (Cost $35,228,402) 25,507,194 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 19,596 ----------- NET ASSETS--100.0% $25,526,790 -------------------------------------------------------
* Non-Income Producing Security. 46 See Notes to Financial Statements. RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.7% AEROSPACE & DEFENSE 3.0% AAR Corp.*.................... 1,645 $26,304 Ceradyne, Inc.*............... 2,166 50,901 Curtiss-Wright Corp. ......... 1,167 43,062 Orbital Sciences Corp.*....... 3,082 63,150 Teledyne Technologies, Inc.*.. 769 35,043 ---------- TOTAL AEROSPACE & DEFENSE 218,460 ---------- AIR FREIGHT & LOGISTICS 0.6% Forward Air Corp. ............ 1,576 41,244 ---------- TOTAL AIR FREIGHT & LOGISTICS 41,244 ---------- AUTO COMPONENTS 0.5% Drew Industries, Inc.*........ 2,774 33,565 ---------- TOTAL AUTO COMPONENTS 33,565 ---------- BEVERAGES 0.5% Boston Beer Co., Inc. -- Class A*......................... 1,017 38,432 ---------- TOTAL BEVERAGES 38,432 ---------- BIOTECHNOLOGY 1.7% Martek Biosciences Corp.*..... 4,051 120,841 ---------- TOTAL BIOTECHNOLOGY 120,841 ---------- BUILDING PRODUCTS 0.7% Simpson Manufacturing Co., Inc. ...................... 2,216 51,057 ---------- TOTAL BUILDING PRODUCTS 51,057 ---------- CAPITAL MARKETS 4.1% Greenhill & Co., Inc. ........ 2,326 153,446 optionsXpress Holdings, Inc. ...................... 3,951 70,170 TradeStation Group, Inc.*..... 9,439 73,907 ---------- TOTAL CAPITAL MARKETS 297,523 ---------- CHEMICALS 1.3% Balchem Corp. ................ 1,745 44,602 NewMarket Corp. .............. 1,316 49,600 ---------- TOTAL CHEMICALS 94,202 ---------- COMMERCIAL BANKS 3.3% Nara Bancorp, Inc. ........... 4,669 51,359 PrivateBancorp, Inc. ......... 1,446 52,070 UCBH Holdings, Inc. .......... 3,084 16,284 Wilshire Bancorp, Inc. ....... 10,707 118,098 ---------- TOTAL COMMERCIAL BANKS 237,811 ---------- COMMERCIAL SERVICES & SUPPLIES 0.6% Waste Connections, Inc.*...... 1,248 42,245 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 42,245 ---------- COMMUNICATIONS EQUIPMENT 1.8% Comtech Telecommunications Corp.*..................... 1,337 64,737 NETGEAR, Inc.*................ 3,851 42,554 ViaSat, Inc.*................. 1,137 20,716 ---------- TOTAL COMMUNICATIONS EQUIPMENT 128,007 ---------- COMPUTERS & PERIPHERALS 0.8% Intevac, Inc.*................ 5,138 39,974 Stratasys, Inc.*.............. 1,587 19,171 ---------- TOTAL COMPUTERS & PERIPHERALS 59,145 ---------- CONSTRUCTION MATERIALS 1.1% Headwaters, Inc.*............. 7,843 83,136 ---------- TOTAL CONSTRUCTION MATERIALS 83,136 ---------- CONSUMER FINANCE 1.2% First Cash Financial Services, Inc.*...................... 2,872 44,142 World Acceptance Corp.*....... 2,135 39,455 ---------- TOTAL CONSUMER FINANCE 83,597 ---------- DISTRIBUTORS 0.2% LKQ Corp.*.................... 1,477 16,897 ---------- TOTAL DISTRIBUTORS 16,897 ---------- DIVERSIFIED CONSUMER SERVICES 2.7% Coinstar, Inc.*............... 3,352 80,414 Pre-Paid Legal Services, Inc.*...................... 1,666 65,774 Universal Technical Institute, Inc.*...................... 2,793 46,085 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 192,273 ---------- DIVERSIFIED FINANCIAL SERVICES 1.2% Portfolio Recovery Associates, Inc.*...................... 2,504 89,844 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 89,844 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.8% Brightpoint, Inc.*............ 4,001 23,046 Daktronics, Inc. ............. 2,334 23,247 FARO Technologies, Inc.*...... 2,495 37,849 LoJack Corp.*................. 2,924 12,778 Scansource, Inc.*............. 1,647 32,676 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 129,596 ---------- ENERGY EQUIPMENT & SERVICES 3.3% Basic Energy Services, Inc.*.. 5,967 81,629 CARBO Ceramics, Inc. ......... 1,387 60,015 Dril-Quip, Inc.*.............. 458 11,313 Hornbeck Offshore Services, Inc.*...................... 2,154 51,265 Superior Well Services, Inc.*...................... 2,185 36,599 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 240,821 ---------- FOOD & STAPLES RETAILING 0.5% United Natural Foods, Inc.*... 1,637 36,571 ---------- TOTAL FOOD & STAPLES RETAILING 36,571 ----------
47 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD PRODUCTS 0.5% Green Mountain Coffee Roasters, Inc.*............ 1,327 $38,470 ---------- TOTAL FOOD PRODUCTS 38,470 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 6.2% Abaxis, Inc.*................. 1,666 25,606 American Medical Systems Holdings, Inc.*............ 2,166 23,436 Cooper Cos., Inc. ............ 1,516 24,984 Haemonetics Corp.*............ 448 26,459 ICU Medical, Inc.*............ 1,057 33,856 Immucor, Inc.*................ 2,645 70,225 Integra LifeSciences Holdings Corp.*..................... 1,595 59,876 Kensey Nash Corp.*............ 1,276 32,398 Merit Medical Systems, Inc.*.. 2,604 47,653 Palomar Medical Technologies, Inc.*...................... 7,283 83,317 SurModics, Inc.*.............. 808 21,412 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 449,222 ---------- HEALTH CARE PROVIDERS & SERVICES 8.9% Air Methods Corp.*............ 1,147 19,247 Amedisys, Inc.*............... 779 43,943 AMN Healthcare Services, Inc.*...................... 4,182 37,596 Amsurg Corp.*................. 1,725 43,021 Catalyst Health Solutioins, Inc.*...................... 6,118 103,211 Healthways, Inc.*............. 1,447 14,615 inVentiv Health, Inc.*........ 3,014 28,542 LCA-Vision, Inc. ............. 6,854 23,441 LHC Group, Inc.*.............. 5,438 191,853 Molina Healthcare, Inc.*...... 1,906 42,447 Pediatrix Medical Group, Inc.*...................... 808 31,229 PharMerica Corp.*............. 2,922 59,989 Sunrise Senior Living, Inc.*.. 2,206 6,662 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 645,796 ---------- HOTELS, RESTAURANTS & LEISURE 5.4% CEC Entertainment, Inc.*...... 2,185 56,111 Monarch Casino & Resort, Inc.*...................... 2,554 22,756 P.F. Chang's China Bistro, Inc.*...................... 2,574 52,664 Panera Bread Co. -- Class A*.. 2,485 112,123 Papa John's International, Inc.*...................... 2,822 63,664 Shuffle Master, Inc.*......... 9,279 35,817 Sonic Corp.*.................. 2,972 31,801 WMS Industries, Inc.*......... 798 19,950 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 394,886 ---------- HOUSEHOLD DURABLES 2.1% Meritage Homes Corp.*......... 6,515 89,451 Standard Pacific Corp.*....... 23,147 65,969 ---------- TOTAL HOUSEHOLD DURABLES 155,420 ---------- INSURANCE 2.1% Infinity Property & Casualty Corp. ..................... 1,956 77,888 Zenith National Insurance Corp. ..................... 2,254 74,066 ---------- TOTAL INSURANCE 151,954 ---------- INTERNET & CATALOG RETAIL 4.2% NutriSystem, Inc. ............ 6,086 86,117 PetMed Express, Inc.*......... 9,418 166,322 Stamps.com, Inc.*............. 4,969 48,497 ---------- TOTAL INTERNET & CATALOG RETAIL 300,936 ---------- INTERNET SOFTWARE & SERVICES 6.0% Bankrate, Inc.*............... 2,824 92,938 DealerTrack Holdings, Inc.*... 3,452 37,040 InfoSpace, Inc. .............. 4,519 38,728 j2 Global Communications, Inc.*...................... 6,217 100,218 United Online, Inc. .......... 6,994 51,755 Websense, Inc.*............... 5,788 112,982 ---------- TOTAL INTERNET SOFTWARE & SERVICES 433,661 ---------- IT SERVICES 2.5% CACI International, Inc. -- Class A*........... 1,278 52,628 Heartland Payment Systems, Inc. ...................... 4,321 75,229 Wright Express Corp.*......... 3,911 53,541 ---------- TOTAL IT SERVICES 181,398 ---------- LEISURE EQUIPMENT & PRODUCTS 1.7% Polaris Industries, Inc. ..... 1,356 45,656 Pool Corp. ................... 4,421 76,970 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 122,626 ---------- LIFE SCIENCES TOOLS & SERVICES 0.9% Dionex Corp.*................. 769 41,395 Kendle International, Inc.*... 1,147 20,726 PharmaNet Development Group, Inc.*...................... 1,316 2,106 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 64,227 ---------- MACHINERY 0.5% Toro Co. ..................... 1,127 37,912 ---------- TOTAL MACHINERY 37,912 ---------- MEDIA 0.7% Arbitron, Inc. ............... 1,485 48,381 ---------- TOTAL MEDIA 48,381 ---------- METALS & MINING 0.2% Brush Engineered Materials, Inc.*...................... 1,276 15,657 ---------- TOTAL METALS & MINING 15,657 ---------- OIL, GAS & CONSUMABLE FUELS 2.1% Penn Virginia Corp. .......... 1,516 56,350 Petroleum Development Corp.*.. 1,687 34,938 St. Mary Land & Exploration Co. ....................... 2,545 63,345 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 154,633 ---------- PAPER & FOREST PRODUCTS 1.0% Deltic Timber Corp. .......... 1,566 71,331 ---------- TOTAL PAPER & FOREST PRODUCTS 71,331 ----------
48 See Notes to Financial Statements. RYDEX S&P SMALLCAP 600 PURE GROWTH ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS (CONCLUDED) PERSONAL PRODUCTS 1.8% Chattem, Inc.*................ 648 $49,034 Mannatech, Inc. .............. 20,654 82,823 ---------- TOTAL PERSONAL PRODUCTS 131,857 ---------- PHARMACEUTICALS 0.4% Par Pharmaceutical Cos., Inc.*...................... 3,153 31,530 ---------- TOTAL PHARMACEUTICALS 31,530 ---------- ROAD & RAIL 2.8% Heartland Express, Inc. ...... 3,501 53,705 Knight Transportation, Inc. .. 4,151 66,001 Landstar System, Inc. ........ 2,175 83,933 ---------- TOTAL ROAD & RAIL 203,639 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.2% Diodes, Inc.*................. 1,457 14,395 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 14,395 ---------- SOFTWARE 8.8% Blackbaud, Inc. .............. 2,395 36,404 Concur Technologies, Inc.*.... 1,964 49,552 Epicor Software Corp.*........ 9,389 66,192 EPIQ Systems, Inc.*........... 3,382 45,961 MICROS Systems, Inc.*......... 1,437 24,472 Quality Systems, Inc. ........ 3,153 121,359 Secure Computing Corp.*....... 9,241 52,304 Smith Micro Software, Inc.*... 8,931 55,819 Sonic Solutions, Inc.*........ 7,114 14,513 SPSS, Inc.*................... 1,756 41,020 Taleo Corp. Class A*.......... 5,775 79,695 Tyler Technologies, Inc.*..... 3,891 52,879 ---------- TOTAL SOFTWARE 640,170 ---------- SPECIALTY RETAIL 6.0% Christopher & Banks Corp. .... 4,190 21,872 Dress Barn, Inc.*............. 4,369 41,768 Gymboree Corp.*............... 2,484 64,236 Hibbett Sports, Inc.*......... 3,642 64,864 Jos. A. Bank Clothiers, Inc.*...................... 2,464 62,758 Select Comfort Corp.*......... 10,436 5,009 Stage Stores, Inc. ........... 7,921 61,071 Tractor Supply Co.*........... 1,895 78,756 Zumiez, Inc.*................. 3,672 35,839 ---------- TOTAL SPECIALTY RETAIL 436,173 ---------- TEXTILES, APPAREL & LUXURY GOODS 3.8% Crocs, Inc.*.................. 3,343 8,391 Deckers Outdoor Corp.*........ 350 29,701 Fossil, Inc.*................. 1,227 22,270 K-Swiss, Inc. -- Class A...... 5,328 80,613 True Religion Apparel, Inc.*.. 4,511 75,559 Volcom, Inc.*................. 4,601 59,491 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 276,025 ---------- TOTAL COMMON STOCKS (Cost $9,875,912) 7,235,566 ---------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund....................... 12,036 12,036 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $12,036) 12,036 ---------- TOTAL INVESTMENTS 99.9% (Cost $9,887,948) 7,247,602 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 9,784 ---------- NET ASSETS--100.0% $7,257,386 -----------------------------------------------------
*Non-Income Producing Security. 49 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% AUTO COMPONENTS 1.9% Goodyear Tire & Rubber Co.(The)*.................. 4,052 $36,144 Johnson Controls, Inc. ....... 1,988 35,247 ---------- TOTAL AUTO COMPONENTS 71,391 ---------- AUTOMOBILES 2.7% Ford Motor Co.*............... 12,468 27,305 General Motors Corp. ......... 5,935 34,304 Harley-Davidson, Inc. ........ 1,558 38,140 ---------- TOTAL AUTOMOBILES 99,749 ---------- DISTRIBUTORS 1.7% Genuine Parts Co. ............ 1,588 62,488 ---------- TOTAL DISTRIBUTORS 62,488 ---------- DIVERSIFIED CONSUMER SERVICES 3.5% Apollo Group, Inc. -- Class A*......................... 1,087 75,558 H&R Block, Inc. .............. 2,749 54,210 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 129,768 ---------- HOTELS, RESTAURANTS & LEISURE 11.6% Carnival Corp. ............... 1,678 42,621 Darden Restaurants, Inc. ..... 2,257 50,038 International Game Technology................. 3,687 51,618 Marriott International, Inc. -- Class A............ 2,399 50,067 McDonald's Corp. ............. 1,028 59,552 Starbucks Corp.*.............. 4,104 53,885 Starwood Hotels & Resorts Worldwide, Inc. ........... 1,939 43,705 Wyndham Worldwide Corp. ...... 3,958 32,416 Yum! Brands, Inc. ............ 1,687 48,940 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 432,842 ---------- HOUSEHOLD DURABLES 15.3% Black & Decker Corp. ......... 998 50,519 Centex Corp. ................. 4,036 49,441 D.R. Horton, Inc. ............ 4,907 36,214 Fortune Brands, Inc. ......... 1,089 41,535 Harman International Industries, Inc. .......... 2,052 37,695 KB HOME....................... 2,956 49,336 Leggett & Platt, Inc. ........ 2,787 48,382 Lennar Corp. -- Class A....... 4,469 34,590 Newell Rubbermaid, Inc. ...... 3,495 48,056 Pulte Homes, Inc. ............ 4,046 45,072 Snap-on, Inc. ................ 1,218 45,005 Stanley Works(The)............ 1,460 47,800 Whirlpool Corp. .............. 769 35,874 ---------- TOTAL HOUSEHOLD DURABLES 569,519 ---------- INTERNET & CATALOG RETAIL 2.4% Amazon.com, Inc.*............. 864 49,455 Expedia, Inc.*................ 4,170 39,657 ---------- TOTAL INTERNET & CATALOG RETAIL 89,112 ---------- LEISURE EQUIPMENT & PRODUCTS 3.8% Eastman Kodak Co. ............ 4,183 38,400 Hasbro, Inc. ................. 1,777 51,658 Mattel, Inc. ................. 3,511 52,735 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 142,793 ---------- MEDIA 19.0% CBS Corp. -- Class B.......... 4,202 40,802 Comcast Corp. -- Class A...... 3,225 50,826 DIRECTV Group, Inc.(The)*..... 2,636 57,702 Gannett Co., Inc. ............ 3,637 40,007 Interpublic Group of Cos., Inc.*...................... 8,286 43,004 McGraw-Hill Cos., Inc. ....... 1,633 43,830 Meredith Corp. ............... 2,238 43,350 New York Times Co. -- Class A.......................... 4,311 43,110 News Corp. -- Class A......... 5,060 53,838 Omnicom Group, Inc. .......... 1,619 47,825 Scripps Networks Interactive -- Class A..... 1,566 44,474 Time Warner, Inc. ............ 4,739 47,817 Viacom, Inc. -- Class B*...... 2,549 51,541 Walt Disney Co.(The).......... 1,968 50,971 Washington Post Co. -- Class B.......................... 113 48,228 ---------- TOTAL MEDIA 707,325 ---------- MULTILINE RETAIL 9.6% Big Lots, Inc.*............... 2,055 50,204 Family Dollar Stores, Inc. ... 2,304 62,001 J.C. Penney Co., Inc. ........ 1,685 40,305 Kohl's Corp.*................. 1,286 45,177 Macy's, Inc. ................. 3,304 40,606 Nordstrom, Inc. .............. 1,967 35,583 Sears Holdings Corp.*......... 639 36,896 Target Corp. ................. 1,186 47,582 ---------- TOTAL MULTILINE RETAIL 358,354 ---------- SPECIALTY RETAIL 21.2% Abercrombie & Fitch Co. -- Class A............. 1,487 43,064 AutoNation, Inc.*............. 4,951 34,013 AutoZone, Inc.*............... 510 64,918 Bed Bath & Beyond, Inc.*...... 2,068 53,292 Best Buy Co., Inc. ........... 1,597 42,816 GameStop Corp. -- Class A*.... 1,706 46,727 Gap, Inc.(The)................ 3,526 45,626 Home Depot, Inc. ............. 2,446 57,701 Limited Brands, Inc. ......... 3,404 40,780 Lowe's Cos., Inc. ............ 2,746 59,588 Office Depot, Inc.*........... 10,598 38,153 RadioShack Corp. ............. 3,753 47,513 Sherwin-Williams Co.(The)..... 1,070 60,894 Staples, Inc. ................ 2,708 52,617 Tiffany & Co. ................ 1,726 47,379 TJX Cos., Inc. ............... 1,995 53,386 ---------- TOTAL SPECIALTY RETAIL 788,467 ---------- TEXTILES, APPAREL & LUXURY GOODS 7.1% Coach, Inc.*.................. 2,308 47,545 Jones Apparel Group, Inc. .... 3,435 38,163 Liz Claiborne, Inc. .......... 3,521 28,696 NIKE, Inc. -- Class B......... 1,018 58,667 Polo Ralph Lauren Corp. ...... 939 44,293 V.F. Corp. ................... 809 44,576 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 261,940 ---------- TOTAL COMMON STOCKS (Cost $6,986,784) 3,713,748 ----------
50 See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund....................... 7,072 $7,072 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $7,072) 7,072 ---------- TOTAL INVESTMENTS 100.0% (Cost $6,993,856) 3,720,820 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,446 ---------- NET ASSETS--100.0% $3,722,266 -----------------------------------------------------
(a) Amount represents less than 0.05% of net assets. * Non-Income Producing Security. 51 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.4% BEVERAGES 20.1% Anheuser-Busch Cos., Inc. .... 4,650 $288,439 Brown-Forman Corp. -- Class B.......................... 5,151 233,833 Coca-Cola Co.(The)............ 5,730 252,464 Coca-Cola Enterprises, Inc. .. 17,470 175,573 Constellation Brands, Inc. -- Class A*........... 13,900 174,306 Dr Pepper Snapple Group, Inc.*...................... 11,560 264,724 Molson Coors Brewing Co. -- Class B............. 6,280 234,621 Pepsi Bottling Group, Inc. ... 9,830 227,270 PepsiCo, Inc. ................ 4,180 238,302 ----------- TOTAL BEVERAGES 2,089,532 ----------- FOOD & STAPLES RETAILING 19.5% Costco Wholesale Corp. ....... 4,480 255,405 CVS Caremark Corp. ........... 8,470 259,605 Kroger Co.(The)............... 11,400 313,044 Safeway, Inc. ................ 11,940 253,964 SUPERVALU, Inc. .............. 13,460 191,670 Sysco Corp. .................. 8,960 234,752 Wal-Mart Stores, Inc. ........ 4,970 277,376 Walgreen Co. ................. 9,310 237,033 ----------- TOTAL FOOD & STAPLES RETAILING 2,022,849 ----------- FOOD PRODUCTS 31.3% Archer-Daniels-Midland Co. ... 14,189 294,138 Campbell Soup Co. ............ 7,950 301,703 ConAgra Foods, Inc. .......... 15,530 270,533 Dean Foods Co.*............... 12,950 283,087 General Mills, Inc. .......... 4,390 297,379 H.J. Heinz Co. ............... 6,150 269,493 Hershey Co.(The).............. 7,160 266,638 Kellogg Co. .................. 5,370 270,755 Kraft Foods, Inc. -- Class A.. 9,060 264,008 McCormick & Co., Inc. ........ 7,730 260,192 Sara Lee Corp. ............... 23,549 263,278 Tyson Foods, Inc. -- Class A.. 23,549 205,818 ----------- TOTAL FOOD PRODUCTS 3,247,022 ----------- HOUSEHOLD PRODUCTS 10.7% Clorox Co. ................... 4,810 292,496 Colgate-Palmolive Co. ........ 3,980 249,785 Kimberly-Clark Corp. ......... 4,720 289,289 Procter & Gamble Co. ......... 4,240 273,649 ----------- TOTAL HOUSEHOLD PRODUCTS 1,105,219 ----------- PERSONAL PRODUCTS 3.9% Avon Products, Inc. .......... 7,640 189,701 Estee Lauder Cos., Inc -- Class A............. 5,920 213,357 ----------- TOTAL PERSONAL PRODUCTS 403,058 ----------- TOBACCO 13.9% Altria Group, Inc. ........... 15,120 290,153 Lorillard, Inc. .............. 4,310 283,856 Philip Morris International, Inc. ...................... 6,010 261,255 Reynolds American, Inc. ...... 6,250 306,000 UST, Inc. .................... 4,470 302,127 ----------- TOTAL TOBACCO 1,443,391 ----------- TOTAL COMMON STOCKS (Cost $11,719,178) 10,311,071 ----------- SHORT TERM INVESTMENTS 0.5% SSgA Government Money Market Fund....................... 48,592 48,592 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $48,592) 48,592 ----------- TOTAL INVESTMENTS 99.9% (Cost $11,767,770) 10,359,663 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 8,176 ----------- NET ASSETS--100.0% $10,367,839 ------------------------------------------------------
*Non-Income Producing Security. 52 See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT ENERGY ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% ENERGY EQUIPMENT & SERVICES 28.1% Baker Hughes, Inc. ........... 3,270 $114,287 BJ Services Co. .............. 10,050 129,143 Cameron International Corp.*.. 5,270 127,850 ENSCO International, Inc. .... 3,630 137,976 Halliburton Co. .............. 6,110 120,917 Nabors Industries, Ltd.*...... 8,090 116,334 National-Oilwell Varco, Inc.*...................... 4,020 120,158 Noble Corp. .................. 4,880 157,185 Rowan Cos., Inc. ............. 6,470 117,366 Schlumberger, Ltd. ........... 2,560 132,224 Smith International, Inc. .... 3,460 119,301 Transocean, Inc.*............. 1,850 152,310 Weatherford International, Ltd.*...................... 7,530 127,106 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 1,672,157 ---------- OIL, GAS & CONSUMABLE FUELS 71.7% Anadarko Petroleum Corp. ..... 3,980 140,494 Apache Corp. ................. 1,870 153,957 Cabot Oil & Gas Corp. ........ 5,590 156,911 Chesapeake Energy Corp. ...... 5,490 120,615 Chevron Corp. ................ 2,560 190,976 ConocoPhillips................ 2,930 152,419 CONSOL Energy, Inc. .......... 3,760 118,026 Devon Energy Corp. ........... 2,160 174,658 El Paso Corp. ................ 15,930 154,521 EOG Resources, Inc. .......... 2,290 185,307 Exxon Mobil Corp. ............ 2,720 201,606 Hess Corp. ................... 2,500 150,525 Marathon Oil Corp. ........... 5,310 154,521 Massey Energy Co. ............ 5,800 133,922 Murphy Oil Corp. ............. 3,250 164,580 Noble Energy, Inc. ........... 3,650 189,143 Occidental Petroleum Corp. ... 2,990 166,065 Peabody Energy Corp. ......... 3,970 137,005 Pioneer Natural Resources Co. ....................... 3,800 105,754 Range Resources Corp. ........ 4,280 180,702 Southwestern Energy Co.*...... 6,540 232,955 Spectra Energy Corp. ......... 8,610 166,431 Sunoco, Inc. ................. 5,160 157,380 Tesoro Corp. ................. 12,250 118,458 Valero Energy Corp. .......... 6,590 135,622 Williams Cos., Inc. .......... 8,520 178,664 XTO Energy, Inc. ............. 4,160 149,552 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 4,270,769 ---------- TOTAL COMMON STOCKS (Cost $9,473,407) 5,942,926 ---------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund....................... 14,428 14,428 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $14,428) 14,428 ---------- TOTAL INVESTMENTS 100.0% (Cost $9,487,835) 5,957,354 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 197 ---------- NET ASSETS--100.0% $5,957,551 -----------------------------------------------------
*Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. 53 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT FINANCIALS ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------ COMMON STOCKS 99.7% CAPITAL MARKETS 19.3% American Capital, Ltd. ....... 7,694 $108,101 Ameriprise Financial, Inc. ... 4,650 100,440 Bank of New York Mellon Corp. ..................... 5,699 185,787 Charles Schwab Corp.(The)..... 7,753 148,237 E*TRADE Financial Corp.*...... 54,762 99,667 Federated Investors, Inc. -- Class B............ 6,702 162,188 Franklin Resources, Inc. ..... 1,945 132,260 Goldman Sachs Group, Inc.(The).................. 1,667 154,198 Invesco Ltd. ................. 7,632 113,793 Janus Capital Group, Inc. .... 7,478 87,792 Legg Mason, Inc. ............. 4,978 110,462 Merrill Lynch & Co., Inc. .... 6,799 126,393 Morgan Stanley................ 7,983 139,463 Northern Trust Corp. ......... 2,484 139,874 State Street Corp. ........... 3,165 137,203 T. Rowe Price Group, Inc. .... 3,104 122,732 ----------- TOTAL CAPITAL MARKETS 2,068,590 ----------- COMMERCIAL BANKS 21.7% BB&T Corp. ................... 4,742 170,001 Comerica, Inc. ............... 4,978 137,343 Fifth Third Bancorp........... 11,324 122,865 First Horizon National Corp. ..................... 13,940 166,025 Huntington Bancshares, Inc. .. 17,113 161,718 KeyCorp....................... 13,856 169,459 M&T Bank Corp. ............... 2,083 168,931 Marshall & Ilsley Corp. ...... 7,729 139,354 National City Corp. .......... 40,409 109,104 PNC Financial Services Group, Inc. ...................... 2,384 158,941 Regions Financial Corp. ...... 12,021 133,313 SunTrust Banks, Inc. ......... 3,363 134,991 U.S. Bancorp.................. 5,102 152,091 Wachovia Corp. ............... 12,224 78,356 Wells Fargo & Co. ............ 5,001 170,284 Zions Bancorp................. 4,008 152,745 ----------- TOTAL COMMERCIAL BANKS 2,325,521 ----------- CONSUMER FINANCE 5.3% American Express Co. ......... 4,901 134,778 Capital One Financial Corp. .. 3,474 135,903 Discover Financial Services... 12,561 153,872 SLM Corp.*.................... 12,744 135,978 ----------- TOTAL CONSUMER FINANCE 560,531 ----------- DIVERSIFIED FINANCIAL SERVICES 12.9% Bank of America Corp. ........ 5,862 141,684 CIT Group, Inc. .............. 17,476 72,351 Citigroup, Inc. .............. 10,649 145,359 CME Group, Inc. .............. 511 144,179 IntercontinentalExchange, Inc.*...................... 2,459 210,392 JPMorgan Chase & Co. ......... 4,499 185,584 Leucadia National Corp. ...... 4,684 125,718 Moody's Corp. ................ 5,165 132,224 Nasdaq OMX Group (The)*....... 2,701 87,674 NYSE Euronext................. 4,498 135,750 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 1,380,915 ----------- INSURANCE 22.8% AFLAC, Inc. .................. 2,940 130,183 Allstate Corp. ............... 4,070 107,407 American International Group, Inc. ...................... 49,443 94,436 Aon Corp. .................... 3,998 169,115 Assurant, Inc. ............... 3,618 92,187 Chubb Corp. .................. 3,162 163,855 Cincinnati Financial Corp. ... 6,042 157,032 Genworth Financial, Inc. -- Class A............ 13,353 64,629 Hartford Financial Services Group, Inc. ............... 3,208 33,107 Lincoln National Corp. ....... 3,576 61,650 Loews Corp. .................. 4,675 155,257 Marsh & McLennan Cos., Inc. .. 5,698 167,065 MBIA, Inc. ................... 14,050 138,112 MetLife, Inc. ................ 3,024 100,457 Principal Financial Group, Inc. ...................... 4,156 78,922 Progressive Corp. ............ 11,049 157,669 Prudential Financial, Inc. ... 2,226 66,780 Torchmark Corp. .............. 3,139 131,116 Travelers Cos., Inc.(The)..... 3,742 159,222 Unum Group.................... 7,454 117,401 XL Capital, Ltd. -- Class A... 10,060 97,582 ----------- TOTAL INSURANCE 2,443,184 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 14.6% Apartment Investment & Management Co. -- Class A.. 5,422 79,324 AvalonBay Communities, Inc. .. 1,880 133,518 Boston Properties, Inc. ...... 1,954 138,499 Developers Diversified Realty Corp. ..................... 5,523 72,738 Equity Residential............ 3,930 137,275 General Growth Properties, Inc. ...................... 9,290 38,461 HCP, Inc. .................... 4,670 139,773 Host Hotels & Resorts, Inc. .. 11,399 117,866 Kimco Realty Corp. ........... 4,554 102,829 Plum Creek Timber Co., Inc. .. 3,429 127,833 ProLogis...................... 4,531 63,434 Public Storage, Inc. ......... 1,877 152,975 Simon Property Group, Inc. ... 1,884 126,285 Vornado Realty Trust.......... 1,839 129,741 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,560,551 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.9% CB Richard Ellis Group, Inc. -- Class A*........... 13,489 94,558 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 94,558 ----------- THRIFTS & MORTGAGE FINANCE 2.2% Hudson City Bancorp, Inc. .... 9,325 175,403 Sovereign Bancorp, Inc.*...... 21,189 61,449 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 236,852 ----------- TOTAL COMMON STOCKS (Cost $13,733,558) 10,670,702 ----------- SHORT TERM INVESTMENTS 0.3% SSgA Government Money Market Fund....................... 33,725 33,725 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $33,725) 33,725 ----------- TOTAL INVESTMENTS 100.0% (Cost $13,767,283) 10,704,427 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 938 ----------- NET ASSETS--100.0% $10,705,365 ------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. 54 See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------- COMMON STOCKS 99.9% BIOTECHNOLOGY 11.2% Amgen, Inc.*.................. 18,930 $1,133,718 Biogen Idec, Inc.*............ 24,090 1,025,029 Celgene Corp.*................ 17,660 1,134,832 Genzyme Corp.*................ 14,120 1,029,066 Gilead Sciences, Inc.*........ 24,070 1,103,609 ----------- TOTAL BIOTECHNOLOGY 5,426,254 ----------- HEALTH CARE EQUIPMENT & SUPPLIES 21.9% Baxter International, Inc. ... 17,090 1,033,774 Becton, Dickinson & Co. ...... 14,110 979,234 Boston Scientific Corp.*...... 84,100 759,423 C.R. Bard, Inc. .............. 11,480 1,013,110 Covidien, Ltd. ............... 20,560 910,603 Hospira, Inc.*................ 28,770 800,381 Intuitive Surgical, Inc.*..... 4,120 711,895 Medtronic, Inc. .............. 21,520 867,902 St Jude Medical, Inc.*........ 25,290 961,779 Stryker Corp. ................ 17,920 958,003 Varian Medical Systems, Inc.*...................... 18,920 861,049 Zimmer Holdings, Inc.*........ 16,580 769,809 ----------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 10,626,962 ----------- HEALTH CARE PROVIDERS & SERVICES 27.9% Aetna, Inc. .................. 29,770 740,380 AmerisourceBergen Corp. ...... 28,930 904,641 Cardinal Health, Inc. ........ 22,170 846,894 CIGNA Corp. .................. 30,550 497,965 Coventry Health Care, Inc.*... 34,840 459,540 DaVita, Inc.*................. 20,260 1,149,755 Express Scripts, Inc.*........ 15,120 916,423 Humana, Inc.*................. 27,010 799,226 Laboratory Corp. of America Holdings*.................. 15,440 949,405 McKesson Corp. ............... 20,540 755,666 Medco Health Solutions, Inc.*...................... 23,420 888,789 Patterson Cos., Inc.*......... 36,090 914,160 Quest Diagnostics, Inc. ...... 20,190 944,892 Tenet Healthcare Corp.*....... 184,910 809,906 UnitedHealth Group, Inc. ..... 42,730 1,013,983 WellPoint, Inc.*.............. 23,840 926,661 ----------- TOTAL HEALTH CARE PROVIDERS & SERVICES 13,518,286 ----------- HEALTH CARE TECHNOLOGY 1.6% IMS Health, Inc. ............. 55,740 799,311 ----------- TOTAL HEALTH CARE TECHNOLOGY 799,311 ----------- LIFE SCIENCES TOOLS & SERVICES 8.9% Applied Biosystems Inc. ...... 31,760 979,161 Millipore Corp.*.............. 16,280 844,769 PerkinElmer, Inc. ............ 43,870 787,028 Thermo Fisher Scientific Inc.*...................... 20,180 819,308 Waters Corp.*................. 20,450 895,710 ----------- TOTAL LIFE SCIENCES TOOLS & SERVICES 4,325,976 ----------- PHARMACEUTICALS 28.4% Abbott Laboratories........... 19,520 1,076,528 Allergan, Inc. ............... 19,910 789,830 Barr Pharmaceuticals, Inc.*... 17,200 1,105,272 Bristol-Myers Squibb Co. ..... 54,300 1,115,865 Eli Lilly & Co. .............. 25,000 845,500 Forest Laboratories, Inc.*.... 40,500 940,815 Johnson & Johnson............. 16,070 985,734 King Pharmaceuticals, Inc.*... 110,660 972,701 Merck & Co., Inc. ............ 35,560 1,100,582 Mylan Inc.*................... 96,550 827,434 Pfizer, Inc. ................. 63,110 1,117,678 Schering-Plough Corp. ........ 61,710 894,178 Watson Pharmaceuticals, Inc.*...................... 41,150 1,076,895 Wyeth......................... 29,540 950,597 ----------- TOTAL PHARMACEUTICALS 13,799,609 ----------- TOTAL COMMON STOCKS (Cost $62,529,167) 48,496,398 ----------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 30,722 30,722 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $30,722) 30,722 ----------- TOTAL INVESTMENTS 100.0% (Cost $62,559,889) 48,527,120 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 9,482 ----------- NET ASSETS--100.0% $48,536,602 -------------------------------------------------------
*Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. 55 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.8% AEROSPACE & DEFENSE 20.9% Boeing Co. ................... 2,971 $155,294 General Dynamics Corp. ....... 2,078 125,345 Goodrich Corp. ............... 3,723 136,113 Honeywell International, Inc. ...................... 3,917 119,273 L-3 Communications Holdings, Inc. ...................... 1,697 137,745 Lockheed Martin Corp. ........ 1,539 130,892 Northrop Grumman Corp. ....... 2,666 125,009 Precision Castparts Corp. .... 1,971 127,740 Raytheon Co. ................. 2,936 150,059 Rockwell Collins, Inc. ....... 3,515 130,863 United Technologies Corp. .... 2,758 151,580 ---------- TOTAL AEROSPACE & DEFENSE 1,489,913 ---------- AIR FREIGHT & LOGISTICS 8.0% C.H. Robinson Worldwide, Inc. ...................... 3,096 160,311 Expeditors International of Washington, Inc. .......... 4,503 147,023 FedEx Corp. .................. 1,911 124,922 United Parcel Service, Inc. -- Class B............ 2,604 137,439 ---------- TOTAL AIR FREIGHT & LOGISTICS 569,695 ---------- AIRLINES 1.8% Southwest Airlines Co. ....... 11,124 131,041 ---------- TOTAL AIRLINES 131,041 ---------- BUILDING PRODUCTS 1.3% Masco Corp. .................. 9,107 92,436 ---------- TOTAL BUILDING PRODUCTS 92,436 ---------- COMMERCIAL SERVICES & SUPPLIES 16.9% Allied Waste Industries, Inc.*...................... 15,062 156,946 Avery Dennison Corp. ......... 3,741 131,010 Cintas Corp. ................. 5,552 131,582 Equifax, Inc. ................ 5,075 132,356 Monster Worldwide, Inc.*...... 9,423 134,183 Pitney Bowes, Inc. ........... 4,858 120,381 R.R. Donnelley & Sons Co. .... 6,900 114,333 Robert Half International, Inc. ...................... 6,633 125,165 Waste Management, Inc. ....... 5,068 158,274 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 1,204,230 ---------- CONSTRUCTION & ENGINEERING 3.1% Fluor Corp. .................. 2,901 115,837 Jacobs Engineering Group, Inc.*...................... 2,877 104,809 ---------- TOTAL CONSTRUCTION & ENGINEERING 220,646 ---------- ELECTRICAL EQUIPMENT 5.4% Cooper Industries, Ltd. -- Class A............ 4,043 125,131 Emerson Electric Co. ......... 4,011 131,280 Rockwell Automation, Inc. .... 4,691 129,800 ---------- TOTAL ELECTRICAL EQUIPMENT 386,211 ---------- INDUSTRIAL CONGLOMERATES 6.9% 3M Co. ....................... 2,449 157,471 General Electric Co. ......... 6,884 134,307 Textron, Inc. ................ 5,271 93,297 Tyco International, Ltd. ..... 4,308 108,906 ---------- TOTAL INDUSTRIAL CONGLOMERATES 493,981 ---------- MACHINERY 21.8% Caterpillar, Inc. ............ 2,646 100,998 Cummins, Inc. ................ 3,134 81,014 Danaher Corp. ................ 2,259 133,823 Deere & Co. .................. 2,788 107,505 Dover Corp. .................. 3,928 124,793 Eaton Corp. .................. 2,549 113,685 Flowserve Corp. .............. 79 4,497 Illinois Tool Works, Inc. .... 3,678 122,808 Ingersoll-Rand Co., Ltd. -- Class A............ 4,965 91,604 ITT Corp. .................... 2,964 131,898 Manitowoc Co., Inc. .......... 9,462 93,106 PACCAR, Inc. ................. 4,048 118,364 Pall Corp. ................... 5,047 133,291 Parker-Hannifin Corp. ........ 3,036 117,706 Terex Corp.*.................. 5,164 86,187 ---------- TOTAL MACHINERY 1,561,279 ---------- ROAD & RAIL 9.8% Burlington Northern Santa Fe Corp. ..................... 1,750 155,855 CSX Corp. .................... 3,036 138,806 Norfolk Southern Corp. ....... 2,499 149,790 Ryder System, Inc. ........... 2,509 99,407 Union Pacific Corp. .......... 2,328 155,440 ---------- TOTAL ROAD & RAIL 699,298 ---------- TRADING COMPANIES & DISTRIBUTORS 3.9% Fastenal Co. ................. 3,216 129,476 W.W. Grainger, Inc. .......... 1,929 151,562 ---------- TOTAL TRADING COMPANIES & DISTRIBUTORS 281,038 ---------- TOTAL COMMON STOCKS (Cost $9,877,271) 7,129,768 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 11,867 11,867 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $11,867) 11,867 ---------- TOTAL INVESTMENTS 99.9% (Cost $9,889,138) 7,141,635 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 4,174 ---------- NET ASSETS--100.0% $7,145,809 -----------------------------------------------------
*Non-Income Producing Security. 56 See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT MATERIALS ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.7% CHEMICALS 50.3% Air Products & Chemicals, Inc. ...................... 3,123 $181,540 Ashland, Inc. ................ 8,204 185,328 CF Industries Holdings, Inc. ...................... 2,168 139,164 Dow Chemical Co.(The)......... 6,752 180,076 Du Pont (E.I.) de Nemours & Co. ....................... 5,271 168,672 Eastman Chemical Co. ......... 4,062 164,064 Ecolab, Inc. ................. 4,951 184,474 Hercules, Inc. ............... 12,404 208,511 International Flavors & Fragrances, Inc. .......... 5,652 180,186 Monsanto Co. ................. 2,144 190,773 PPG Industries, Inc. ......... 3,653 181,116 Praxair, Inc. ................ 2,925 190,564 Rohm & Haas Co. .............. 3,353 235,883 Sigma-Aldrich Corp. .......... 4,588 201,230 ---------- TOTAL CHEMICALS 2,591,581 ---------- CONSTRUCTION MATERIALS 3.2% Vulcan Materials Co. ......... 3,049 165,500 ---------- TOTAL CONSTRUCTION MATERIALS 165,500 ---------- CONTAINERS & PACKAGING 15.6% Ball Corp. ................... 5,819 199,010 Bemis Co., Inc. .............. 8,637 214,543 Pactiv Corp.*................. 8,854 208,600 Sealed Air Corp. ............. 10,638 179,995 ---------- TOTAL CONTAINERS & PACKAGING 802,148 ---------- METALS & MINING 21.9% AK Steel Holding Corp. ....... 8,233 114,603 Alcoa, Inc. .................. 9,387 108,044 Allegheny Technologies, Inc. ...................... 5,879 156,029 Freeport-McMoRan Copper & Gold, Inc. ................ 3,560 103,596 Newmont Mining Corp. ......... 6,081 160,174 Nucor Corp. .................. 5,193 210,368 Titanium Metals Corp. ........ 19,951 185,744 United States Steel Corp. .... 2,531 93,343 ---------- TOTAL METALS & MINING 1,131,901 ---------- PAPER & FOREST PRODUCTS 8.7% International Paper Co. ...... 8,834 152,121 MeadWestvaco Corp. ........... 9,792 137,382 Weyerhaeuser Co. ............. 4,168 159,301 ---------- TOTAL PAPER & FOREST PRODUCTS 448,804 ---------- TOTAL COMMON STOCKS (Cost $7,303,322) 5,139,934 ---------- SHORT TERM INVESTMENTS 0.2% SSgA Government Money Market Fund....................... 11,609 11,609 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $11,609) 11,609 ---------- TOTAL INVESTMENTS 99.9% (Cost $7,314,931) 5,151,543 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 3,464 ---------- NET ASSETS--100.0% $5,155,007 -----------------------------------------------------
*Non-Income Producing Security. 57 ANNUAL REPORT See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.9% COMMUNICATIONS EQUIPMENT 13.1% Ciena Corp.*.................. 13,693 $131,590 Cisco Systems, Inc.*.......... 5,991 106,460 Corning, Inc. ................ 8,592 93,051 Harris Corp. ................. 2,873 103,284 JDS Uniphase Corp.*........... 16,061 87,693 Juniper Networks, Inc.*....... 5,253 98,441 Motorola, Inc. ............... 19,228 103,255 QUALCOMM, Inc. ............... 2,913 111,452 Tellabs, Inc.*................ 34,729 147,251 ---------- TOTAL COMMUNICATIONS EQUIPMENT 982,477 ---------- COMPUTERS & PERIPHERALS 14.3% Apple, Inc.*.................. 1,020 109,742 Dell, Inc.*................... 7,756 94,235 EMC Corp.*.................... 10,980 129,344 Hewlett-Packard Co. .......... 2,876 110,093 International Business Machines Corp. ............ 1,183 109,984 Lexmark International, Inc. -- Class A*........... 4,154 107,298 NetApp, Inc.*................. 6,647 89,934 QLogic Corp.*................. 7,880 94,718 SanDisk Corp.*................ 6,000 53,340 Sun Microsystems, Inc.*....... 16,887 77,680 Teradata Corp.*............... 6,101 93,894 ---------- TOTAL COMPUTERS & PERIPHERALS 1,070,262 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 6.3% Agilent Technologies, Inc.*... 4,344 96,393 Amphenol Corp. -- Class A..... 3,484 99,817 Jabil Circuit, Inc. .......... 11,954 100,533 Molex, Inc. .................. 5,511 79,414 Tyco Electronics, Ltd. ....... 5,126 99,649 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 475,806 ---------- INTERNET SOFTWARE & SERVICES 6.9% Akamai Technologies, Inc.*.... 7,996 114,983 eBay, Inc.*................... 5,875 89,711 Google, Inc. -- Class A*...... 307 110,324 VeriSign, Inc.*............... 5,520 117,024 Yahoo!, Inc.*................. 6,414 82,227 ---------- TOTAL INTERNET SOFTWARE & SERVICES 514,269 ---------- IT SERVICES 15.4% Affiliated Computer Services, Inc. -- Class A*........... 2,727 111,807 Automatic Data Processing, Inc. ...................... 3,109 108,660 Cognizant Technology Solutions Corp. -- Class A*.......... 5,700 109,440 Computer Sciences Corp.*...... 3,183 95,999 Convergys Corp.*.............. 8,871 68,218 Fidelity National Information Services, Inc. ............ 6,687 100,907 Fiserv, Inc.*................. 2,684 89,538 Mastercard, Inc. -- Class A... 655 96,822 Paychex, Inc. ................ 4,224 120,553 Total System Services, Inc. .. 7,749 106,471 Unisys Corp.*................. 42,080 63,962 Western Union Co. ............ 5,394 82,312 ---------- TOTAL IT SERVICES 1,154,689 ---------- OFFICE ELECTRONICS 1.2% Xerox Corp. .................. 10,810 86,696 ---------- TOTAL OFFICE ELECTRONICS 86,696 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 25.0% Advanced Micro Devices, Inc.*...................... 25,571 89,498 Altera Corp. ................. 6,289 109,114 Analog Devices, Inc. ......... 4,831 103,190 Applied Materials, Inc. ...... 8,469 109,335 Broadcom Corp. -- Class A*.... 6,602 112,762 Intel Corp. .................. 7,004 112,064 KLA-Tencor Corp. ............. 4,009 93,209 Linear Technology Corp. ...... 4,288 97,252 LSI Corp.*.................... 22,956 88,381 MEMC Electronic Materials, Inc.*...................... 4,522 83,114 Microchip Technology, Inc. ... 4,468 110,047 Micron Technology, Inc.*...... 32,280 152,039 National Semiconductor Corp. ..................... 7,742 101,962 Novellus Systems, Inc.*....... 6,467 102,179 NVIDIA Corp.*................. 12,511 109,596 Teradyne, Inc.*............... 15,817 80,667 Texas Instruments, Inc. ...... 5,967 116,715 Xilinx, Inc. ................. 5,638 103,852 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1,874,976 ---------- SOFTWARE 17.7% Adobe Systems, Inc.*.......... 3,423 91,189 Autodesk, Inc.*............... 4,082 86,988 BMC Software, Inc.*........... 4,238 109,425 CA, Inc. ..................... 6,366 113,315 Citrix Systems, Inc.*......... 4,951 127,587 Compuware Corp.*.............. 13,791 87,987 Electronic Arts, Inc.*........ 3,072 69,980 Intuit, Inc.*................. 4,462 111,818 Microsoft Corp. .............. 5,340 119,242 Novell, Inc.*................. 24,558 114,440 Oracle Corp.*................. 7,297 133,462 Salesforce.com, Inc.*......... 2,445 75,697 Symantec Corp.*............... 6,992 87,959 ---------- TOTAL SOFTWARE 1,329,089 ---------- TOTAL COMMON STOCKS (Cost $14,024,184) 7,488,264 ---------- SHORT TERM INVESTMENTS 0.1% SSgA Government Money Market Fund....................... 7,797 7,797 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $7,797) 7,797 ---------- TOTAL INVESTMENTS 100.0% (Cost $14,031,981) 7,496,061 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(a) (948) ---------- NET ASSETS--100.0% $7,495,113 -----------------------------------------------------
*Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. 58 See Notes to Financial Statements. RYDEX S&P EQUAL WEIGHT UTILITIES ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ----------------------------------------------------- COMMON STOCKS 99.7% DIVERSIFIED TELECOMMUNICATION SERVICES 15.6% AT&T, Inc. ................... 4,200 $112,434 CenturyTel, Inc. ............. 3,210 80,603 Embarq Corp. ................. 2,790 83,700 Frontier Communications Corp. ..................... 10,390 79,068 Qwest Communications International, Inc. ....... 33,530 95,896 Verizon Communications, Inc. ...................... 3,750 111,262 Windstream Corp. ............. 10,590 79,531 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 642,494 ---------- ELECTRIC UTILITIES 33.8% Allegheny Energy, Inc. ....... 3,300 99,495 American Electric Power Co., Inc. ...................... 3,410 111,268 Duke Energy Corp. ............ 6,570 107,617 Edison International.......... 3,050 108,550 Entergy Corp. ................ 1,400 109,270 Exelon Corp. ................. 1,910 103,598 FirstEnergy Corp. ............ 1,830 95,453 FPL Group, Inc. .............. 2,320 109,597 Pepco Holdings, Inc. ......... 5,420 111,923 Pinnacle West Capital Corp. .. 3,450 109,192 PPL Corp. .................... 3,400 111,588 Progress Energy, Inc. ........ 2,770 109,055 Southern Co. ................. 3,090 106,111 ---------- TOTAL ELECTRIC UTILITIES 1,392,717 ---------- GAS UTILITIES 5.2% Nicor, Inc. .................. 2,510 115,987 Questar Corp. ................ 2,820 97,177 ---------- TOTAL GAS UTILITIES 213,164 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 7.9% AES Corp.(The)*............... 10,150 80,896 Constellation Energy Group, Inc. ...................... 5,040 122,018 Dynegy, Inc. -- Class A*...... 33,260 121,066 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 323,980 ---------- MULTI-UTILITIES 33.3% Ameren Corp. ................. 2,950 95,728 CenterPoint Energy, Inc. ..... 8,730 100,570 CMS Energy Corp. ............. 9,830 100,757 Consolidated Edison, Inc. .... 2,660 115,231 Dominion Resources, Inc. ..... 2,920 105,938 DTE Energy Co. ............... 2,900 102,370 Integrys Energy Group, Inc. .. 2,370 112,978 NiSource, Inc. ............... 7,970 103,291 PG&E Corp. ................... 3,030 111,110 Public Service Enterprise Group, Inc. ............... 3,550 99,932 Sempra Energy................. 2,360 100,512 TECO Energy, Inc. ............ 7,290 84,127 Wisconsin Energy Corp. ....... 900 39,150 Xcel Energy, Inc. ............ 5,610 97,726 ---------- TOTAL MULTI-UTILITIES 1,369,420 ---------- WIRELESS TELECOMMUNICATION SERVICES 3.9% American Tower Corp. -- Class A*......................... 3,130 101,131 Sprint Nextel Corp. .......... 19,440 60,847 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 161,978 ---------- TOTAL COMMON STOCKS (Cost $5,732,679) 4,103,753 ---------- SHORT TERM INVESTMENTS 0.5% SSgA Government Money Market Fund....................... 22,350 22,350 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $22,350) 22,350 ---------- TOTAL INVESTMENTS 100.2% (Cost $5,755,029) 4,126,103 ---------- LIABILITIES IN EXCESS OF OTHER ASSETS--(0.2)% (8,352) ---------- NET ASSETS--100.0% $4,117,751 -----------------------------------------------------
* Non-Income Producing Security. 59 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF ASSETS AND LIABILITIES October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P 500 PURE 500 PURE MIDCAP 400 MIDCAP 400 VALUE ETF GROWTH ETF PURE VALUE ETF PURE GROWTH ETF ------------ ------------ -------------- --------------- ASSETS Investments at Market Value............ $ 17,947,704 $ 24,386,597 $10,126,250 $17,585,216 Cash................................. -- -- 5,600 -- Receivables: Investments Sold..................... -- -- 62,247 188,082 Dividends............................ 51,752 19,966 23,500 3,857 ------------ ------------ ----------- ----------- TOTAL ASSETS...................... 17,999,456 24,406,563 10,211,997 17,777,155 ------------ ------------ ----------- ----------- LIABILITIES Payables: Investments Purchased................ -- -- 83,044 174,125 Overdraft............................ -- -- -- 889 Accrued Management Fees.............. 5,876 8,777 3,417 6,297 ------------ ------------ ----------- ----------- TOTAL LIABILITIES................. 5,876 8,777 86,461 181,311 ------------ ------------ ----------- ----------- NET ASSETS............................. $ 17,993,580 $ 24,397,786 $10,125,536 $17,595,844 ============ ============ =========== =========== NET ASSETS CONSIST OF: Paid-in Capital........................ $ 33,598,265 $ 39,645,365 $18,217,411 $27,732,063 Undistributed Net Investment Income.... 13,722 18,881 -- 93 Accumulated Net Realized Gain (Loss) on Investment Securities................ (2,968,885) (770,754) (1,219,254) (1,048,339) Net Unrealized Depreciation on Investment Securities................ (12,649,522) (14,495,706) (6,872,621) (9,087,973) ------------ ------------ ----------- ----------- NET ASSETS............................. $ 17,993,580 $ 24,397,786 $10,125,536 $17,595,844 ============ ============ =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value............ 1,000,989 1,000,097 500,168 450,011 ============ ============ =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share........... $ 17.98 $ 24.40 $ 20.24 $ 39.10 ============ ============ =========== =========== Total Cost of Investments.............. $ 30,597,226 $ 38,882,303 $16,998,871 $26,673,189 ============ ============ =========== ===========
60 See Notes to Financial Statements. STATEMENTS OF ASSETS AND LIABILITIES (continued) October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL RYDEX S&P EQUAL SMALLCAP 600 SMALLCAP 600 WEIGHT CONSUMER WEIGHT CONSUMER PURE VALUE ETF PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF -------------- --------------- ----------------- --------------- ASSETS Investments at Market Value......... $25,507,194 $ 7,247,602 $ 3,720,820 $10,359,663 Receivables: Investments Sold.................. 11,093 81,892 -- 157,871 Dividends......................... 27,212 2,086 3,460 12,008 ----------- ----------- ----------- ----------- TOTAL ASSETS................... 25,545,499 7,331,580 3,724,280 10,529,542 ----------- ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased............. -- 71,996 -- 157,213 Overdraft......................... 11,093 -- -- -- Accrued Management Fees........... 7,616 2,198 2,014 4,490 ----------- ----------- ----------- ----------- TOTAL LIABILITIES.............. 18,709 74,194 2,014 161,703 ----------- ----------- ----------- ----------- NET ASSETS.......................... $25,526,790 $ 7,257,386 $ 3,722,266 $10,367,839 =========== =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital..................... $39,836,934 $10,178,851 $ 8,285,157 $11,996,093 Undistributed Net Investment Income............................ 12,181 192 2,465 11,681 Accumulated Net Realized Gain (Loss) on Investment Securities.......... (4,601,117) (281,311) (1,292,320) (231,828) Net Unrealized Depreciation on Investment Securities............. (9,721,208) (2,640,346) (3,273,036) (1,408,107) ----------- ----------- ----------- ----------- NET ASSETS.......................... $25,526,790 $ 7,257,386 $ 3,722,266 $10,367,839 =========== =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value......... 1,100,039 250,004 150,000 250,000 =========== =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share........ $ 23.21 $ 29.03 $ 24.82 $ 41.47 =========== =========== =========== =========== Total Cost of Investments........... $35,228,402 $ 9,887,948 $ 6,993,856 $11,767,770 =========== =========== =========== ===========
61 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF ASSETS AND LIABILITIES (continued) October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT ENERGY ETF FINANCIALS ETF HEALTH CARE ETF INDUSTRIALS ETF ------------ -------------- --------------- --------------- ASSETS Investments at Market Value............. $ 5,957,354 $10,704,427 $ 48,527,120 $ 7,141,635 Receivables: Investments Sold...................... -- 47,019 -- -- Dividends............................. 2,823 18,612 31,943 7,037 ----------- ----------- ------------ ----------- TOTAL ASSETS....................... 5,960,177 10,770,058 48,559,063 7,148,672 ----------- ----------- ------------ ----------- LIABILITIES Payables: Investments Purchased................. -- 60,825 -- -- Accrued Management Fees............... 2,626 3,868 22,461 2,863 ----------- ----------- ------------ ----------- TOTAL LIABILITIES.................. 2,626 64,693 22,461 2,863 ----------- ----------- ------------ ----------- NET ASSETS.............................. $ 5,957,551 $10,705,365 $ 48,536,602 $ 7,145,809 =========== =========== ============ =========== NET ASSETS CONSIST OF: Paid-in Capital......................... $ 9,533,229 $15,829,524 $ 63,574,028 $ 9,926,511 Undistributed Net Investment Income..... 937 -- 10,963 1,505 Accumulated Net Realized Gain (Loss) on Investment Securities................. (46,134) (2,061,303) (1,015,620) (34,704) Net Unrealized Depreciation on Investment Securities................. (3,530,481) (3,062,856) (14,032,769) (2,747,503) ----------- ----------- ------------ ----------- NET ASSETS.............................. $ 5,957,551 $10,705,365 $ 48,536,602 $ 7,145,809 =========== =========== ============ =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value............. 150,005 500,000 1,150,000 200,000 =========== =========== ============ =========== Net Asset Value, Offering Price and Repurchase Price Per Share............ $ 39.72 $ 21.41 $ 42.21 $ 35.73 =========== =========== ============ =========== Total Cost of Investments............... $ 9,487,835 $13,767,283 $ 62,559,889 $ 9,889,138 =========== =========== ============ ===========
62 See Notes to Financial Statements. STATEMENTS OF ASSETS AND LIABILITIES (concluded) October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT MATERIALS ETF TECHNOLOGY ETF UTILITIES ETF ------------- -------------- ------------- ASSETS Investments at Market Value....................... $ 5,151,543 $ 7,496,061 $ 4,126,103 Receivables: Investments Sold................................ -- -- 19,679 Dividends....................................... 5,359 3,063 13,891 ----------- ----------- ----------- TOTAL ASSETS................................. 5,156,902 7,499,124 4,159,673 ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased........................... -- -- 39,420 Accrued Management Fees......................... 1,895 4,011 2,502 ----------- ----------- ----------- TOTAL LIABILITIES............................ 1,895 4,011 41,922 ----------- ----------- ----------- NET ASSETS........................................ $ 5,155,007 $ 7,495,113 $ 4,117,751 =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital................................... $ 7,573,651 $14,742,169 $ 5,804,560 Undistributed Net Investment Income............... 5,332 -- 17,521 Accumulated Net Realized Gain (Loss) on Investment Securities...................................... (260,588) (711,136) (75,404) Net Unrealized Depreciation on Investment Securities...................................... (2,163,388) (6,535,920) (1,628,926) ----------- ----------- ----------- NET ASSETS........................................ $ 5,155,007 $ 7,495,113 $ 4,117,751 =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.................................... 150,000 250,000 100,000 =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................................. $ 34.37 $ 29.98 $ 41.18 =========== =========== =========== Total Cost of Investments......................... $ 7,314,931 $14,031,981 $ 5,755,029 =========== =========== ===========
63 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF OPERATIONS For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P 500 PURE 500 PURE MIDCAP 400 MIDCAP 400 VALUE ETF GROWTH ETF PURE VALUE ETF PURE GROWTH ETF ------------ ------------ -------------- --------------- INVESTMENT INCOME Dividends............................ $ 1,076,553 $ 424,914 $ 444,009 $ 82,473 ------------ ------------ ----------- ------------ EXPENSES Management Fee....................... 96,632 161,685 49,014 73,904 ------------ ------------ ----------- ------------ Net Investment Income.................. 979,921 263,229 394,995 8,569 ------------ ------------ ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.......................... (3,206,740) (880,834) (1,263,527) (1,273,983) In-kind Redemptions.................. (792,946) 986,753 (171,083) 1,215,031 ------------ ------------ ----------- ------------ Net Realized Gain (Loss).......... (3,999,686) 105,919 (1,434,610) (58,952) ------------ ------------ ----------- ------------ Net Change in Unrealized Appreciation/Depreciation on: Investment Securities................ (12,417,041) (19,825,715) (6,410,678) (10,136,135) ------------ ------------ ----------- ------------ Net Realized and Unrealized Loss on Investments.......................... (16,416,727) (19,719,796) (7,845,288) (10,195,087) ------------ ------------ ----------- ------------ NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(15,436,806) $(19,456,567) $(7,450,293) $(10,186,518) ============ ============ =========== ============
64 See Notes to Financial Statements. STATEMENTS OF OPERATIONS (continued) For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL RYDEX S&P EQUAL SMALLCAP 600 SMALLCAP 600 WEIGHT CONSUMER WEIGHT CONSUMER PURE VALUE ETF PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF -------------- --------------- ----------------- --------------- INVESTMENT INCOME Dividends....................... $ 729,200 $ 50,405 $ 247,892 $ 223,838 Foreign Taxes Withheld.......... (904) -- -- -- ------------ ----------- ----------- ----------- Total Income................. 728,296 50,405 247,892 223,838 ------------ ----------- ----------- ----------- EXPENSES Management Fee.................. 88,305 22,439 63,937 49,232 Other Fees...................... 247 -- -- -- ------------ ----------- ----------- ----------- Total Expenses............... 88,552 22,439 63,937 49,232 ------------ ----------- ----------- ----------- Net Investment Income............. 639,744 27,966 183,955 174,606 ------------ ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments..................... (4,430,566) (274,420) (1,554,884) (161,705) In-kind Redemptions............. 607,023 573,585 (2,090,258) 203,178 ------------ ----------- ----------- ----------- Net Realized Gain (Loss)..... (3,823,543) 299,165 (3,645,142) 41,473 ------------ ----------- ----------- ----------- Net Change in Unrealized Appreciation/Depreciation on: Investment Securities........... (7,000,618) (3,549,666) (2,318,744) (2,115,793) ------------ ----------- ----------- ----------- Net Realized and Unrealized Loss on Investments.................. (10,824,161) (3,250,501) (5,963,886) (2,074,320) ------------ ----------- ----------- ----------- NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $(10,184,417) $(3,222,535) $(5,779,931) $(1,899,714) ============ =========== =========== ===========
65 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF OPERATIONS (continued) For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT ENERGY ETF FINANCIALS ETF HEATH CARE ETF INDUSTRIALS ETF ------------ -------------- -------------- --------------- INVESTMENT INCOME Dividends............................ $ 128,732 $ 220,784 $ 302,474 $ 155,478 ----------- ----------- ------------ ----------- EXPENSES Management Fee....................... 64,256 32,067 199,367 46,667 ----------- ----------- ------------ ----------- Net Investment Income.................. 64,476 188,717 103,107 108,811 ----------- ----------- ------------ ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.......................... 444,759 (2,058,581) (1,176,641) 170,571 In-kind Redemptions.................. 1,490,700 -- 1,440,772 870,771 ----------- ----------- ------------ ----------- Net Realized Gain (Loss).......... 1,935,459 (2,058,581) 264,131 1,041,342 ----------- ----------- ------------ ----------- Net Change in Unrealized Appreciation/Depreciation on: Investment Securities................ (6,142,032) (2,732,751) (13,885,432) (4,023,914) ----------- ----------- ------------ ----------- Net Realized and Unrealized Loss on Investments.......................... (4,206,573) (4,791,332) (13,621,301) (2,982,572) ----------- ----------- ------------ ----------- NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(4,142,097) $(4,602,615) $(13,518,194) $(2,873,761) =========== =========== ============ ===========
66 See Notes to Financial Statements. STATEMENTS OF OPERATIONS (concluded) For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX S&P RYDEX S&P RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT MATERIALS ETF TECHNOLOGY ETF UTILITIES ETF ------------- -------------- ------------- INVESTMENT INCOME Dividends...................................... $ 186,097 $ 123,222 $ 214,696 ----------- ----------- ----------- EXPENSES Management Fee................................. 29,264 96,926 28,349 ----------- ----------- ----------- Net Investment Income............................ 156,833 26,296 186,347 ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments.................................... (257,285) (929,134) (74,875) In-kind Redemptions............................ 317,838 (405,169) (351,808) ----------- ----------- ----------- Net Realized Gain (Loss).................... 60,553 (1,334,303) (426,683) ----------- ----------- ----------- Net Change in Unrealized Appreciation/Depreciation on: Investment Securities.......................... (2,701,829) (7,030,476) (2,110,863) ----------- ----------- ----------- Net Realized and Unrealized Loss on Investments.. (2,641,276) (8,364,779) (2,537,546) ----------- ----------- ----------- NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................ $(2,484,443) $(8,338,483) $(2,351,199) =========== =========== ===========
67 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income............ $ 979,921 $ 782,512 $ 263,229 $ 287,779 Net Realized Gain (Loss)......... (3,999,686) 1,498,971 105,919 (303,897) Net Change in Unrealized Appreciation/Depreciation on Investments................... (12,417,041) (1,243,457) (19,825,715) 4,763,550 ------------ ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting From Operations.................... (15,436,806) 1,038,026 (19,456,567) 4,747,432 ------------ ------------ ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............ (996,902) (763,947) (259,562) (279,098) ------------ ------------ ------------ ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........ 9,326,454 30,026,191 15,193,116 41,220,808 Value of Shares Reinvested....... 21,040 6,721 1,902 1,567 Value of Shares Repurchased...... (14,555,071) (11,904,315) (34,421,140) -- ------------ ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions.................. (5,207,577) 18,128,597 (19,226,122) 41,222,375 ------------ ------------ ------------ ----------- Increase (Decrease) in Net Assets...................... (21,641,285) 18,402,676 (38,942,251) 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)....... $ 17,993,580 $ 39,634,865 $ 24,397,786 $63,340,037 ============ ============ ============ =========== (1) Including Undistributed Net Investment Income................ $ 13,722 $ 71,041 $ 18,881 $ 15,214 ============ ============ ============ =========== CHANGES IN SHARES OUTSTANDING: Shares Sold...................... 350,000 850,000 400,000 1,100,000 Shares Reinvested................ 797 192 56 41 Shares Repurchased............... (500,000) (350,000) (1,000,000) -- Shares Outstanding, Beginning of Period........................ 1,150,192 650,000 1,600,041 500,000 ------------ ------------ ------------ ----------- Shares Outstanding, End of Period........................ 1,000,989 1,150,192 1,000,097 1,600,041 ============ ============ ============ ===========
68 See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 PURE GROWTH RYDEX S&P MIDCAP 400 PURE VALUE ETF ETF ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income................ $ 394,995 $ 431,034 $ 8,569 $ 121,930 Net Realized Gain (Loss)............. (1,434,610) 1,170,195 (58,952) 1,847,506 Net Change in Unrealized Appreciation/Depreciation on Investments....................... (6,410,678) (1,114,000) (10,136,135) 2,040,810 ------------ ------------ ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Operations......... (7,450,293) 487,229 (10,186,518) 4,010,246 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................ (365,468) (425,129) (14,295) (118,480) Capital.............................. (3,840) -- -- -- Net Realized Gains................... -- -- -- (64,208) ------------ ------------ ------------ ------------ Decrease in Net Assets From Distributions to Shareholders..... (369,308) (425,129) (14,295) (182,688) ------------ ------------ ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold............ 2,929,138 20,533,730 31,994,754 8,630,176 Value of Shares Reinvested........... 2,678 2,802 170 432 Value of Shares Repurchased.......... (6,444,307) (14,113,540) (25,112,473) (14,090,678) ------------ ------------ ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions...................... (3,512,491) 6,422,992 6,882,451 (5,460,070) ------------ ------------ ------------ ------------ Increase (Decrease) in Net Assets.......................... (11,332,092) 6,485,092 (3,318,362) (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)........... $ 10,125,536 $ 21,457,628 $ 17,595,844 $ 20,914,206 ============ ============ ============ ============ (1) Including Undistributed Net Investment Income.................... $ -- $ 7,853 $ 93 $ 5,819 ============ ============ ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Sold.......................... 100,000 550,000 600,000 150,000 Shares Reinvested.................... 90 78 3 8 Shares Repurchased................... (200,000) (400,000) (500,000) (250,000) Shares Outstanding, Beginning of Period............................ 600,078 450,000 350,008 450,000 ------------ ------------ ------------ ------------ Shares Outstanding, End of Period.... 500,168 600,078 450,011 350,008 ============ ============ ============ ============
69 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 RYDEX S&P SMALLCAP 600 PURE VALUE ETF PURE GROWTH ETF ----------------------------------- ----------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ---------------- ---------------- OPERATIONS Net Investment Income................ $ 639,744 $ 341,437 $ 27,966 $ 189 Net Realized Gain (Loss)............. (3,823,543) (164,386) 299,165 470,249 Net Change in Unrealized Appreciation/Depreciation on Investments....................... (7,000,618) (2,989,872) (3,549,666) 855,709 ------------ ----------- ----------- ----------- Net Decrease in Net Assets Resulting From Operations................... (10,184,417) (2,812,821) (3,222,535) 1,326,147 ------------ ----------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................ (581,573) (304,472) (27,774) (4,792) Capital.............................. -- (9,172) -- -- ------------ ----------- ----------- ----------- Decrease in Net Assets From Distributions to Shareholders..... (581,573) (313,644) (27,774) (4,792) ------------ ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold............ 18,998,419 21,411,904 3,530,251 4,219,106 Value of Shares Reinvested........... 577 883 111 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...................... 13,866,436 19,533,714 (721,411) 2,088,066 ------------ ----------- ----------- ----------- Increase in Net Assets............ 3,100,446 16,407,249 (3,971,720) 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)........... $ 25,526,790 $22,426,344 $ 7,257,386 $11,229,106 ============ =========== =========== =========== (1) Including Undistributed Net Investment Income.................... $ 12,181 $ -- $ 192 $ -- ============ =========== =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold.......................... 650,000 500,000 100,000 100,000 Shares Reinvested.................... 18 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.... 1,100,039 600,021 250,004 250,001 ============ =========== =========== ===========
70 See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT CONSUMER RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF STAPLES ETF ------------------------------------ ------------------------------------ YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, 2008 OCTOBER 31, 2007* OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income............... $ 183,955 $ 256,800 $ 174,606 $ 173,946 Net Realized Gain (Loss)............ (3,645,142) (3,021,999) 41,473 (50,768) Net Change in Unrealized Appreciation/Depreciation on Investments...................... (2,318,744) (954,292) (2,115,793) 707,686 ------------ ------------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations....................... (5,779,931) (3,719,491) (1,899,714) 830,864 ------------ ------------- ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (191,461) (246,829) (170,546) (166,325) ------------ ------------- ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........... 77,181,099 164,688,912 6,977,860 9,840,904 Value of Shares Reinvested.......... -- -- -- -- Value of Shares Repurchased......... (96,415,372) (131,794,661) (2,441,867) (2,603,337) ------------ ------------- ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions..................... (19,234,273) 32,894,251 4,535,993 7,237,567 ------------ ------------- ----------- ----------- Increase (Decrease) in Net Assets......................... (25,205,665) 28,927,931 2,465,733 7,902,106 NET ASSETS--BEGINNING OF PERIOD....... 28,927,931 -- 7,902,106 -- ------------ ------------- ----------- ----------- NET ASSETS--END OF PERIOD(1).......... $ 3,722,266 $ 28,927,931 $10,367,839 $ 7,902,106 ============ ============= =========== =========== (1) Including Undistributed Net Investment Income................... $ 2,465 $ 9,971 $ 11,681 $ 7,621 ============ ============= =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................... 2,050,000 3,550,000 150,000 200,000 Shares Reinvested................... -- -- -- -- Shares Repurchased.................. (2,550,000) (2,900,000) (50,000) (50,000) Shares Outstanding, Beginning of Period........................... 650,000 -- 150,000 -- ------------ ------------- ----------- ----------- Shares Outstanding, End of Period... 150,000 650,000 250,000 150,000 ============ ============= =========== ===========
* The Fund commenced operations on November 1, 2006. 71 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT FINANCIALS RYDEX S&P EQUAL WEIGHT ENERGY ETF ETF ------------------------------------ ------------------------------------ YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, 2008 OCTOBER 31, 2007* OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income............... $ 64,476 $ 39,906 $ 188,717 $ 105,693 Net Realized Gain (Loss)............ 1,935,459 260,240 (2,058,581) 393,350 Net Change in Unrealized Appreciation/Depreciation on Investments...................... (6,142,032) 2,611,551 (2,732,751) (330,105) ----------- ----------- ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations....................... (4,142,097) 2,911,697 (4,602,615) 168,938 ----------- ----------- ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (63,539) (42,062) (161,215) (98,785) Net Realized Gains.................. (269,337) -- -- -- ----------- ----------- ----------- ------------ Decrease in Net Assets From Distributions to Shareholders.... (332,876) (42,062) (161,215) (98,785) ----------- ----------- ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........... 6,873,049 7,251,932 8,469,375 31,922,837 Value of Shares Reinvested.......... 343 -- -- -- Value of Shares Repurchased......... (6,562,435) -- -- (24,993,170) ----------- ----------- ----------- ------------ Net Increase in Net Assets Resulting From Share Transactions.......... 310,957 7,251,932 8,469,375 6,929,667 ----------- ----------- ----------- ------------ Increase (Decrease) in Net Assets......................... (4,164,016) 10,121,567 3,705,545 6,999,820 NET ASSETS--BEGINNING OF PERIOD....... 10,121,567 -- 6,999,820 -- ----------- ----------- ----------- ------------ NET ASSETS--END OF PERIOD(1).......... $ 5,957,551 $10,121,567 $10,705,365 $ 6,999,820 =========== =========== =========== ============ (1) Including Undistributed Net Investment Income................... $ 937 $ -- $ -- $ -- =========== =========== =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Sold......................... 100,000 150,000 350,000 650,000 Shares Reinvested................... 5 -- -- -- Shares Repurchased.................. (100,000) -- -- (500,000) Shares Outstanding, Beginning of Period........................... 150,000 -- 150,000 -- ----------- ----------- ----------- ------------ Shares Outstanding, End of Period... 150,005 150,000 500,000 150,000 =========== =========== =========== ============
* The Fund commenced operations on November 1, 2006. 72 See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT HEALTH CARE RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF ETF ------------------------------------ ------------------------------------ YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, 2008 OCTOBER 31, 2007* OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income............... $ 103,107 $ 39,168 $ 108,811 $ 84,478 Net Realized Gain................... 264,131 1,090,098 1,041,342 253,601 Net Change in Unrealized Appreciation/Depreciation on Investments...................... (13,885,432) (147,337) (4,023,914) 1,276,411 ------------ ------------ ----------- ---------- Net Increase (Decrease) in Net Assets Resulting From Operations....................... (13,518,194) 981,929 (2,873,761) 1,614,490 ------------ ------------ ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (94,309) (37,003) (106,813) (81,906) Net Realized Gains.................. -- -- (266,443) -- ------------ ------------ ----------- ---------- Decrease in Net Assets From Distributions to Shareholders.... ( 94,309) (37,003) (373,256) (81,906) ------------ ------------ ----------- ---------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........... 61,205,232 36,174,181 7,034,803 7,372,663 Value of Shares Reinvested.......... -- -- -- -- Value of Shares Repurchased......... (16,438,715) (19,736,519) (5,547,224) -- ------------ ------------ ----------- ---------- Net Increase in Net Assets Resulting From Share Transactions.......... 44,766,517 16,437,662 1,487,579 7,372,663 ------------ ------------ ----------- ---------- Increase (Decrease) in Net Assets......................... 31,154,014 17,382,588 (1,759,438) 8,905,247 NET ASSETS--BEGINNING OF PERIOD....... 17,382,588 -- 8,905,247 -- ------------ ------------ ----------- ---------- NET ASSETS--END OF PERIOD(1).......... $ 48,536,602 $ 17,382,588 $ 7,145,809 $8,905,247 ============ ============ =========== ========== (1) Including Undistributed Net Investment Income................... $ 10,963 $ 2,165 $ 1,505 $ 1,947 ============ ============ =========== ========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................... 1,150,000 650,000 150,000 150,000 Shares Reinvested................... -- -- -- -- Shares Repurchased.................. (300,000) (350,000) (100,000) -- Shares Outstanding, Beginning of Period........................... 300,000 -- 150,000 -- ------------ ------------ ----------- ---------- Shares Outstanding, End of Period... 1,150,000 300,000 200,000 150,000 ============ ============ =========== ==========
* The Fund commenced operations on November 1, 2006. 73 ANNUAL REPORT See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT TECHNOLOGY RYDEX S&P EQUAL WEIGHT MATERIALS ETF ETF ------------------------------------ ------------------------------------ YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, 2008 OCTOBER 31, 2007* OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ----------------- ---------------- ----------------- OPERATIONS Net Investment Income............... $ 156,833 $ 128,347 $ 26,296 $ (11,089) Net Realized Gain (Loss)............ 60,553 1,084,454 (1,334,303) 1,406,629 Net Change in Unrealized Appreciation/Depreciation on Investments...................... (2,701,829) 538,441 (7,030,476) 494,556 ----------- ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting From Operations....................... (2,484,443) 1,751,242 (8,338,483) 1,890,096 ----------- ------------ ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (159,896) (119,952) (27,611) -- ----------- ------------ ------------ ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........... 4,429,500 26,216,591 15,426,927 25,589,410 Value of Shares Reinvested.......... -- -- -- -- Value of Shares Repurchased......... (5,543,627) (18,934,408) (18,877,730) (8,167,496) ----------- ------------ ------------ ----------- Net Increase (Decrease) in Net Assets Resulting From Share Transactions..................... (1,114,127) 7,282,183 (3,450,803) 17,421,914 ----------- ------------ ------------ ----------- Increase (Decrease) in Net Assets......................... (3,758,466) 8,913,473 (11,816,897) 19,312,010 NET ASSETS--BEGINNING OF PERIOD....... 8,913,473 -- 19,312,010 -- ----------- ------------ ------------ ----------- NET ASSETS--END OF PERIOD(1).......... $ 5,155,007 $ 8,913,473 $ 7,495,113 $19,312,010 =========== ============ ============ =========== (1) Including Undistributed Net Investment Income................... $ 5,332 $ 8,395 $ -- $ -- =========== ============ ============ =========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................... 100,000 500,000 350,000 500,000 Shares Reinvested................... -- -- -- -- Shares Repurchased.................. (100,000) (350,000) (450,000) (150,000) Shares Outstanding, Beginning of Period........................... 150,000 -- 350,000 -- ----------- ------------ ------------ ----------- Shares Outstanding, End of Period... 150,000 150,000 250,000 350,000 =========== ============ ============ ===========
* The Fund commenced operations on March 1, 2006. 74 See Notes to Financial Statements. STATEMENTS OF CHANGES IN NET ASSETS (concluded) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF ------------------------------------ YEAR ENDED PERIOD ENDED OCTOBER 31, 2008 OCTOBER 31, 2007* ---------------- ----------------- OPERATIONS Net Investment Income................................ $ 186,347 $ 217,228 Net Realized Gain (Loss)............................. (426,683) 661,560 Net Change in Unrealized Appreciation/Depreciation on Investments....................................... (2,110,863) 481,937 ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations........................................ (2,351,199) 1,360,725 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................ (182,405) (203,649) ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold............................ 2,499,606 13,839,342 Value of Shares Reinvested........................... -- -- Value of Shares Repurchased.......................... (2,076,737) (8,767,932) ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions...................................... 422,869 5,071,410 ----------- ----------- Increase (Decrease) in Net Assets................. (2,110,735) 6,228,486 NET ASSETS--BEGINNING OF PERIOD........................ 6,228,486 -- ----------- ----------- NET ASSETS--END OF PERIOD(1)........................... $ 4,117,751 $ 6,228,486 =========== =========== (1) Including Undistributed Net Investment Income...... $ 17,521 $ 13,579 =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold.......................................... 50,000 250,000 Shares Reinvested.................................... -- -- Shares Repurchased................................... (50,000) (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. 75 ANNUAL REPORT See Notes to Financial Statements. FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF ----------------------------------------------------- ---------------------------------- YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* OCTOBER 31, 2008 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**.. 1.00 0.75 0.49 0.20 0.25 Net Realized and Unrealized Gain (Loss) on Investments......... (16.44) 1.80 2.58 (15.19) 4.26 ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. (15.44) 2.55 3.07 (14.99) 4.51 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (1.04) (0.75) (0.28) (0.20) (0.22) ------- ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD................. $17.98 $34.46 $32.66 $24.40 $39.59 ======= ======= ======= ======= ======= TOTAL RETURN***.......... (45.76)% 7.79% 10.27% (38.00)% 12.79% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $17,994 $39,635 $21,232 $24,398 $63,340 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.35% 0.35% 0.35%**** 0.35% 0.35% Net Investment Income.... 3.63% 2.15% 2.37%**** 0.57% 0.66% Portfolio Turnover Rate+.................. 53% 26% 4% 30% 24% RYDEX S&P 500 PURE GROWTH ETF ----------------- PERIOD ENDED 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. 76 See Notes to Financial Statements. FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P MIDCAP 400 PURE GROWTH RYDEX S&P MIDCAP 400 PURE VALUE ETF ETF ----------------------------------------------------- ---------------------------------- YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* OCTOBER 31, 2008 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**.. 0.87 0.82 0.44 0.02 0.33 Net Realized and Unrealized Gain (Loss) on Investments......... (15.54) 2.48 1.60 (20.63) 9.73 ------- ------- ------- ------- ------- TOTAL FROM INVESTMENT OPERATIONS............. (14.67) 3.30 2.04 (20.61) 10.06 ------- ------- ------- ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (0.84) (0.81) (0.30) (0.04) (0.27) Capital.................. (0.01) -- -- -- -- Net Realized Gain........ -- -- -- -- (0.14) ------- ------- ------- ------- ------- Total Distributions...... (0.85) (0.81) (0.30) (0.04) (0.41) ------- ------- ------- ------- ------- NET ASSET VALUE AT END OF PERIOD................. $20.24 $35.76 $33.27 $39.10 $59.75 ======= ======= ======= ======= ======= TOTAL RETURN***.......... (41.75)% 9.94% 6.48% (34.52)% 20.17% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $10,126 $21,458 $14,973 $17,596 $20,914 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.35% 0.35% 0.35%**** 0.35% 0.35% Net Investment Income.... 2.87% 2.28% 2.07%**** 0.04% 0.60% Portfolio Turnover Rate+.................. 64% 46% 4% 52% 53% RYDEX S&P MIDCAP 400 PURE GROWTH ETF ----------------- PERIOD ENDED 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) Capital.................. -- Net Realized Gain........ -- ------- 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. 77 ANNUAL REPORT See Notes to Financial Statements. FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P SMALLCAP 600 PURE GROWTH RYDEX S&P SMALLCAP 600 PURE VALUE ETF ETF ----------------------------------------------------- ---------------------------------- YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED OCTOBER 31, 2008 OCTOBER 31, 2007 OCTOBER 31, 2006* OCTOBER 31, 2008 OCTOBER 31, 2007 ---------------- ---------------- ----------------- ---------------- ---------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.... $37.38 $40.13 $38.45 $44.92 $39.10 ------- ------- ------ ------ ------- Net Investment Income**.. 0.79 0.74 0.37 0.17 -- Net Realized and Unrealized Gain (Loss) on Investments......... (14.26) (2.85) 1.62 (15.87) 5.84 ------- ------- ------ ------ ------- TOTAL FROM INVESTMENT OPERATIONS............. (13.47) (2.11) 1.99 (15.70) 5.84 ------- ------- ------ ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... (0.70) (0.62) (0.31) (0.19) (0.02) Capital.................. -- (0.02) -- -- -- ------- ------- ------ ------ ------- Total Distributions...... (0.70) (0.64) (0.31) (0.19) (0.02) ------- ------- ------ ------ ------- NET ASSET VALUE AT END OF PERIOD................. $23.21 $37.38 $40.13 $29.03 $44.92 ======= ======= ====== ====== ======= TOTAL RETURN***.......... (36.48)% (5.38)% 5.19% (35.05)% 14.93% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $25,527 $22,426 $6,019 $7,257 $11,229 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.35% 0.35% 0.35%**** 0.35% 0.35% Net Investment Income.... 2.57% 1.78% 1.46%**** 0.44% 0.00% Portfolio Turnover Rate+.................. 50% 37% 7% 63% 51% RYDEX S&P SMALLCAP 600 PURE GROWTH ETF ----------------- PERIOD ENDED OCTOBER 31, 2006* ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.... $39.31 ------ Net Investment Income**.. (0.01) Net Realized and Unrealized Gain (Loss) on Investments......... (0.20) ------ TOTAL FROM INVESTMENT OPERATIONS............. (0.21) ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income.... -- Capital.................. -- ------ Total Distributions...... -- ------ NET ASSET VALUE AT END OF PERIOD................. $39.10 ====== TOTAL RETURN***.......... (0.55)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............... $7,820 RATIO TO AVERAGE NET ASSETS OF: Expenses................. 0.35%**** Net Investment Income.... (0.04)%**** 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. 78 See Notes to Financial Statements. FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT CONSUMER RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF STAPLES ETF --------------------------------- --------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2008 2007* 2008 2007* --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $44.50 $44.98 $52.68 $48.16 ------ ------- ------- ------ Net Investment Income**............. 0.53 0.32 0.88 1.16 Net Realized and Unrealized Gain (Loss) on Investments............. (19.59) (0.49) (11.22) 4.32 ------ ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... (19.06) (0.17) (10.34) 5.48 ------ ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.62) (0.31) (0.87) (0.96) ------ ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.... $24.82 $44.50 $41.47 $52.68 ====== ======= ======= ====== TOTAL RETURN***..................... (43.27)% (0.40)% (19.87)% 11.45% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $3,722 $28,928 $10,368 $7,902 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50% 0.50%**** 0.50% 0.50%**** Net Investment Income............... 1.44% 0.67%**** 1.78% 2.29%**** Portfolio Turnover Rate+............ 29% 28% 25% 19%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. 79 ANNUAL REPORT See Notes to Financial Statements. FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT FINANCIALS RYDEX S&P EQUAL WEIGHT ENERGY ETF ETF --------------------------------- --------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2008 2007* 2008 2007* --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $67.48 $48.35 $46.67 $48.57 ------ ------- ------- ------ Net Investment Income**............. 0.33 0.27 1.02 0.92 Net Realized and Unrealized Gain (Loss) on Investments............. (25.94) 19.14 (25.40) (1.95) ------ ------- ------- ------ TOTAL FROM INVESTMENT OPERATIONS.... (25.61) 19.41 (24.38) (1.03) ------ ------- ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (0.35) (0.28) (0.88) (0.87) Net Realized Gains.................. (1.80) -- -- -- ------ ------- ------- ------ Total Distributions................. (2.15) (0.28) (0.88) (0.87) ------ ------- ------- ------ NET ASSET VALUE AT END OF PERIOD.... $39.72 $67.48 $21.41 $46.67 ====== ======= ======= ====== TOTAL RETURN***..................... (39.28)% 40.28% (52.88)% (2.23)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $5,958 $10,122 $10,705 $7,000 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50% 0.50%**** 0.50% 0.50%**** Net Investment Income............... 0.50% 0.47%**** 3.09% 1.84%**** Portfolio Turnover Rate+............ 38% 34% 51% 31%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. 80 See Notes to Financial Statements. FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT HEALTH CARE RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF ETF ------------------------------------ ------------------------------------ YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2008 2007* 2008 2007* --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.......................... $57.94 $49.46 $59.37 $49.15 ------- ------- ------ ------ Net Investment Income**........... 0.14 0.11 0.61 0.56 Net Realized and Unrealized Gain (Loss) on Investments........... (15.74) 8.48 (21.82) 10.21 ------- ------- ------ ------ TOTAL FROM INVESTMENT OPERATIONS.. (15.60) 8.59 (21.21) 10.77 ------- ------- ------ ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............. (0.13) (0.11) (0.65) (0.55) Net Realized Gains................ -- -- (1.78) -- ------- ------- ------ ------ Total Distributions............... (0.13) (0.11) (2.43) (0.55) ------- ------- ------ ------ NET ASSET VALUE AT END OF PERIOD.. $42.21 $57.94 $35.73 $59.37 ======= ======= ====== ====== TOTAL RETURN***................... (26.98)% 17.37% (37.12)% 22.00% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)........................ $48,537 $17,383 $7,146 $8,905 RATIO TO AVERAGE NET ASSETS OF: Expenses.......................... 0.50% 0.50%**** 0.50% 0.50%**** Net Investment Income............. 0.26% 0.20%**** 1.17% 1.02%**** Portfolio Turnover Rate+.......... 26% 55% 30% 36%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. 81 ANNUAL REPORT See Notes to Financial Statements. FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT MATERIALS RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF ETF --------------------------------- --------------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2008 2007* 2008 2007* --------------- --------------- ----------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............................ $59.42 $48.43 $55.18 $47.80 ------ ------ ------ ------- Net Investment Income**............. 1.40 0.85 0.06 (0.05) Net Realized and Unrealized Gain (Loss) on Investments............. (25.11) 10.74 (25.19) 7.43 ------ ------ ------ ------- TOTAL FROM INVESTMENT OPERATIONS.... (23.71) 11.59 (25.13) 7.38 ------ ------ ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............... (1.34) (0.60) (0.07) -- ------ ------ ------ ------- NET ASSET VALUE AT END OF PERIOD.... $34.37 $59.42 $29.98 $55.18 ====== ====== ====== ======= TOTAL RETURN***..................... (40.67)% 24.02% (45.58)% 15.44% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......................... $5,155 $8,913 $7,495 $19,312 RATIO TO AVERAGE NET ASSETS OF: Expenses............................ 0.50% 0.50%**** 0.50% 0.50%**** Net Investment Income............... 2.69% 1.53%**** 0.14% (0.10)%**** Portfolio Turnover Rate+............ 34% 31% 36% 60%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. 82 See Notes to Financial Statements. FINANCIAL HIGHLIGHTS (concluded) --------------------------------------------------------------------------------
RYDEX S&P EQUAL WEIGHT UTILITIES ETF --------------------------------- YEAR ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, 2008 2007* --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD.................. $62.28 $54.91 ------ ------ Net Investment Income**................................. 1.81 1.55 Net Realized and Unrealized Gain (Loss) on Investments.. (21.09) 7.38 ------ ------ TOTAL FROM INVESTMENT OPERATIONS........................ (19.28) 8.93 ------ ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................... (1.82) (1.56) ------ ------ NET ASSET VALUE AT END OF PERIOD........................ $41.18 $62.28 ====== ====== TOTAL RETURN***......................................... (31.63)% 16.41% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)............. $4,118 $6,228 RATIO TO AVERAGE NET ASSETS OF: Expenses................................................ 0.50% 0.50%**** Net Investment Income................................... 3.30% 2.59%**** Portfolio Turnover Rate+................................ 25% 20%
* The Fund commenced operations on November 1, 2006. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. 83 ANNUAL REPORT See Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS October 31, 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 October 31, 2008, the Trust offers thirty one portfolios, each of which represents a separate series of beneficial interest in the Trust, (each a "Fund" and collectively, the "Funds"). The financial 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 U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures at the date of the financial statements and accompanying notes and the reported amounts of increases and decreases in net assets from operations during the reporting period. Management believes that the estimates utilized in preparing the Funds' financial statements are reasonable and prudent; however, actual results could differ from these estimates. A. SECURITY VALUATION Securities listed on a domestic securities exchange are valued based on the last sale price as of the close of regular trading hours on the New York Stock Exchange or, in the absence of recorded sales, are valued at the most recent bid price. Securities for which the primary market is the National Association of Securities Dealers Automated Quotations National Market System ("NASDAQ") are valued at the NASDAQ Official Closing Price. The Funds invest in money market mutual funds, which are valued at their Net Asset Value ("NAV"). Securities, for which market quotations are not readily available, including investments that are subject to limitations as to their sale, are valued at fair value as determined in good faith by Rydex Investments, which acts as the Funds' investment advisor (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. 84 NOTES TO FINANCIAL STATEMENTS (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 follow certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by 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 year ended October 31, 2008, the Funds had not engaged in repurchase agreement transactions. D. FEDERAL INCOME TAXES The Funds' policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of the taxable income and capital gains, if any, to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. The Funds adopted Financial Accounting Standards Board (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 the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years for purposes of complying with FIN 48, and has concluded that no provision for income tax was required in the Funds' financial statements. The Funds file U.S. federal income tax returns and returns in various foreign jurisdictions in which they invest. While the statute of limitations remains open to examine the Funds' U.S. federal income tax returns filed for the fiscal years 2006 and 2007, no examinations are in progress or anticipated at this time. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for tax equalization, in-kind redemptions, income reclassifications from real estate investment trusts ("REITs") and losses deferred due to wash sales. In order to present paid-in-capital, undistributed net investment income (loss) and accumulated net realized gain (loss) on investments on the statement of assets and liabilities that more closely represent their tax character, certain adjustments have been made to these accounts. These adjustments have no effect on net assets or net asset value per share. The most significant of these adjustments are for tax equalization and net capital gains resulting from in- kind redemptions which, because they are non-taxable to the Funds, and therefore are not distributed to existing Fund shareholders, are reclassified to paid-in- capital. The in-kind net capital gains for the year ended October 31, 2008 are disclosed in each Fund's Statement of Operations. For the year ended October 31, 2008, the adjustments for the Funds were as follows: 85 ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------------------------------------------------
UNDISTRIBUTED ACCUMULATED PAID-IN NET INVESTMENT NET REALIZED CAPITAL INCOME (LOSS) GAIN (LOSS) ----------- -------------- ------------ Rydex S&P 500 Pure Value ETF......................... $(1,001,555) $(40,338) $ 1,041,893 Rydex S&P 500 Pure Growth ETF........................ 521,025 -- (521,025) Rydex S&P MidCap 400 Pure Value ETF.................. (305,185) (37,380) 342,565 Rydex S&P MidCap 400 Pure Growth ETF................. 964,762 -- (964,762) Rydex S&P SmallCap 600 Pure Value ETF................ 600,691 (45,990) (554,701) Rydex S&P SmallCap 600 Pure Growth ETF............... 528,344 -- (528,344) Rydex S&P Equal Weight Consumer Discretionary ETF.... (2,355,678) -- 2,355,678 Rydex S&P Equal Weight Consumer Staples ETF.......... 192,766 -- (192,766) Rydex S&P Equal Weight Energy ETF.................... 1,970,340 -- (1,970,340) Rydex S&P Equal Weight Financials ETF................ (947) (27,502) 28,449 Rydex S&P Equal Weight Health Care ETF............... 1,259,539 -- (1,259,539) Rydex S&P Equal Weight Industrials ETF............... 1,066,269 (2,440) (1,063,829) Rydex S&P Equal Weight Materials ETF................. 308,663 -- (308,663) Rydex S&P Equal Weight Technology ETF................ (648,467) 1,315 647,152 Rydex S&P Equal Weight Utilities ETF................. (353,465) -- 353,465
For the year ended October 31, 2008, there were no significant differences between the book basis and tax basis of net unrealized appreciation (depreciation) in value of investments other than tax deferral of losses on wash sales and the cumulative return of capital payments on REITs. At October 31, 2008, the Funds had capital loss carryforwards which may be utilized to offset any net realized capital gains expiring October 31:
2014 2015 2016 ------- -------- ---------- Rydex S&P 500 Pure Value ETF.............................. $ -- $ -- $2,798,860 Rydex S&P 500 Pure Growth ETF............................. 28,988 142,389 524,165 Rydex S&P MidCap 400 Pure Value ETF....................... 94,708 13,767 936,294 Rydex S&P MidCap 400 Pure Growth ETF...................... -- -- 645,507 Rydex S&P SmallCap 600 Pure Value ETF..................... 16,654 170,782 3,946,225 Rydex S&P SmallCap 600 Pure Growth ETF.................... -- -- 127,914 Rydex S&P Equal Weight Consumer Discretionary ETF......... -- -- 1,277,332 Rydex S&P Equal Weight Consumer Staples ETF............... -- 54,862 152,812 Rydex S&P Equal Weight Energy ETF......................... -- -- -- Rydex S&P Equal Weight Financials ETF..................... -- -- 1,811,004 Rydex S&P Equal Weight Health Care ETF.................... -- -- 951,005 Rydex S&P Equal Weight Industrials ETF.................... -- -- -- Rydex S&P Equal Weight Materials ETF...................... -- -- 176,420 Rydex S&P Equal Weight Technology ETF..................... -- -- 637,647 Rydex S&P Equal Weight Utilities ETF...................... -- -- 60,408
The Funds did not utilize any capital loss carryforwards during the year ended October 31, 2008. The tax character of distributable earnings (accumulated losses) at October 31, 2008 were as follows:
UNDISTRIBUTED UNREALIZED UNDISTRIBUTED LONG TERM CAPITAL LOSS APPRECIATION/ ORDINARY INCOME CAPITAL GAIN CARRYFORWARD (DEPRECIATION) --------------- ------------- ------------ -------------- Rydex S&P 500 Pure Value ETF................. $13,722 $ -- $(2,798,860) $(12,819,547) Rydex S&P 500 Pure Growth ETF................ 18,881 -- (695,542) (14,570,918) Rydex S&P MidCap 400 Pure Value ETF.......... -- -- (1,044,769) (7,047,106) Rydex S&P MidCap 400 Pure Growth ETF......... 93 -- (645,507) (9,490,805) Rydex S&P SmallCap 600 Pure Value ETF........ 12,181 -- (4,133,661) (10,188,664) Rydex S&P SmallCap 600 Pure Growth ETF....... 192 -- (127,914) (2,793,743) Rydex S&P Equal Weight Consumer Discretionary ETF........................................ 2,465 -- (1,277,332) (3,288,024) Rydex S&P Equal Weight Consumer Staples ETF.. 11,681 -- (207,674) (1,432,261) Rydex S&P Equal Weight Energy ETF............ 937 -- -- (3,576,615) Rydex S&P Equal Weight Financials ETF........ -- -- (1,811,004) (3,313,155) Rydex S&P Equal Weight Health Care ETF....... 10,963 -- (951,005) (14,097,384) Rydex S&P Equal Weight Industrials ETF....... 1,505 -- -- (2,782,207) Rydex S&P Equal Weight Materials ETF......... 5,332 -- (176,420) (2,247,556) Rydex S&P Equal Weight Technology ETF........ -- -- (637,647) (6,609,409) Rydex S&P Equal Weight Utilities ETF......... 17,521 -- (60,408) (1,643,922)
86 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- The tax character of distributions paid during 2008 were as follows:
ORDINARY LONG-TERM RETURN ON INCOME CAPITAL GAIN CAPITAL -------- ------------ --------- Rydex S&P 500 Pure Value ETF............................. $996,902 $-- $ -- Rydex S&P 500 Pure Growth ETF............................ 259,562 -- -- Rydex S&P MidCap 400 Pure Value ETF...................... 365,468 -- 3,840 Rydex S&P MidCap 400 Pure Growth ETF..................... 14,295 -- -- Rydex S&P SmallCap 600 Pure Value ETF.................... 581,573 -- -- Rydex S&P SmallCap 600 Pure Growth ETF................... 27,774 -- -- Rydex S&P Equal Weight Consumer Discretionary ETF........ 191,461 -- -- Rydex S&P Equal Weight Consumer Staples ETF.............. 170,546 -- -- Rydex S&P Equal Weight Energy ETF........................ 332,876 -- -- Rydex S&P Equal Weight Financials ETF.................... 161,215 -- -- Rydex S&P Equal Weight Health Care ETF................... 94,309 -- -- Rydex S&P Equal Weight Industrials ETF................... 373,256 -- -- Rydex S&P Equal Weight Materials ETF..................... 159,896 -- -- Rydex S&P Equal Weight Technology ETF.................... 27,611 -- -- Rydex S&P Equal Weight Utilities ETF..................... 182,405 -- --
The tax character of distributions paid during 2007 were as follows:
ORDINARY LONG-TERM INCOME CAPITAL GAIN -------- ------------ Rydex S&P 500 Pure Value ETF................................... $763,947 $ -- Rydex S&P 500 Pure Growth ETF.................................. 279,098 -- Rydex S&P MidCap 400 Pure Value ETF............................ 425,129 -- Rydex S&P MidCap 400 Pure Growth ETF........................... 182,688 -- Rydex S&P SmallCap 600 Pure Value ETF.......................... 304,472 -- Rydex S&P SmallCap 600 Pure Growth ETF......................... 4,792 -- Rydex S&P Equal Weight Consumer Discretionary ETF.............. 246,829 -- Rydex S&P Equal Weight Consumer Staples ETF.................... 166,325 -- Rydex S&P Equal Weight Energy ETF.............................. 42,062 -- Rydex S&P Equal Weight Financials ETF.......................... 98,785 -- Rydex S&P Equal Weight Health Care ETF......................... 37,003 -- Rydex S&P Equal Weight Industrials ETF......................... 81,906 -- Rydex S&P Equal Weight Materials ETF........................... 119,952 -- Rydex S&P Equal Weight Technology ETF.......................... -- -- Rydex S&P Equal Weight Utilities ETF........................... 203,649 --
E. FAIR VALUE MEASUREMENT The Funds adopted Statement of Financial Accounting Standard No. 157 ("FAS 157") Fair Value Measurement which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity's financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification an acceptable fair valuation methods and applications. Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels: Level 1 -- quoted prices in active markets for identical securities. Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 -- significant unobservable inputs (including the Funds' own assumptions used to determine the fair value of investments). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. 87 ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- The following table summarizes the inputs used to value the Funds' net assets as of October 31, 2008:
LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 1 OTHER LEVEL 2 OTHER LEVEL 3 OTHER INVESTMENTS FINANCIAL INVESTMENTS FINANCIAL INVESTMENTS FINANCIAL FUND IN SECURITIES INSTRUMENTS IN SECURITIES INSTRUMENTS IN SECURITIES INSTRUMENTS TOTAL ---- ------------- ----------- ------------- ----------- ------------- ----------- ----------- ASSETS Rydex S&P 500 Pure Value ETF... $17,947,704 $ -- $ -- $ -- $ -- $ -- $17,947,704 Rydex S&P 500 Pure Growth ETF.. 24,386,597 -- -- -- -- -- 24,386,597 Rydex S&P MidCap 400 Pure Value ETF.......................... 10,126,250 -- -- -- -- -- 10,126,250 Rydex S&P MidCap 400 Pure Growth ETF................... 17,585,216 -- -- -- -- -- 17,585,216 Rydex S&P SmallCap 600 Pure Value ETF.................... 25,507,194 -- -- -- -- -- 25,507,194 Rydex S&P SmallCap 600 Pure Growth ETF................... 7,247,602 -- -- -- -- -- 7,247,602 Rydex S&P Equal Weight Consumer Discretionary ETF............ 3,720,820 -- -- -- -- -- 3,720,820 Rydex S&P Equal Weight Consumer Staples ETF.................. 10,359,663 -- -- -- -- -- 10,359,663 Rydex S&P Equal Weight Energy ETF.......................... 5,957,354 -- -- -- -- -- 5,957,354 Rydex S&P Equal Weight Financials ETF............... 10,704,427 -- -- -- -- -- 10,704,427 Rydex S&P Equal Weight Health Care ETF..................... 48,527,120 -- -- -- -- -- 48,527,120 Rydex S&P Equal Weight Industrials ETF.............. 7,141,635 -- -- -- -- -- 7,141,635 Rydex S&P Equal Weight Materials ETF................ 5,151,543 -- -- -- -- -- 5,151,543 Rydex S&P Equal Weight Technology ETF............... 7,496,061 -- -- -- -- -- 7,496,061 Rydex S&P Equal Weight Utilities ETF................ 4,126,103 -- -- -- -- -- 4,126,103 LIABILITIES 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................ -- -- -- -- -- -- --
F. DIVIDENDS AND DISTRIBUTIONS The Funds declare and pay dividends from net investment income and distribute from net realized capital gains at least annually. G. RISK AND UNCERTAINTIES The Trust invests in various investments which are exposed to risk, such as market risk. Due to the level of risk associated with certain investments it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect amounts reported in future financial statements. The Rydex S&P Equal Weight Sector ETFs are non-diversified funds, subjecting them to a greater risk than funds that are diversified. H. NEW ACCOUNTING PRONOUNCEMENTS In March 2008, the Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds' financial statement disclosures. 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 each Fund's 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. 88 NOTES TO FINANCIAL STATEMENTS (continued) --------------------------------------------------------------------------------
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 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 October 31, 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. Transaction fees are not charged to or paid by the Fund. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex S&P 500 Pure Value ETF....................................... $1,000 Rydex S&P 500 Pure Growth ETF...................................... 1,000 Rydex S&P MidCap 400 Pure Value ETF................................ 750 Rydex S&P MidCap 400 Pure Growth ETF............................... 750 Rydex S&P SmallCap 600 Pure Value ETF.............................. 1,000 Rydex S&P SmallCap 600 Pure Growth ETF............................. 1,000 Rydex S&P Equal Weight Consumer Discretionary ETF.................. 750 Rydex S&P Equal Weight Consumer Staples ETF........................ 500 Rydex S&P Equal Weight Energy ETF.................................. 500 Rydex S&P Equal Weight Financials ETF.............................. 750 Rydex S&P Equal Weight Health Care ETF............................. 500 Rydex S&P Equal Weight Industrials ETF............................. 500 Rydex S&P Equal Weight Materials ETF............................... 500 Rydex S&P Equal Weight Technology ETF.............................. 750 Rydex S&P Equal Weight Utilities ETF............................... 500
89 ANNUAL REPORT NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 5. INVESTMENT TRANSACTIONS For the year ended October 31, 2008 the Funds had in-kind contributions and in- kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex S&P 500 Pure Value ETF................................. $ 9,292,276 $14,411,568 Rydex S&P 500 Pure Growth ETF................................ 15,115,309 34,269,664 Rydex S&P MidCap 400 Pure Value ETF.......................... 2,924,913 6,303,437 Rydex S&P MidCap 400 Pure Growth ETF......................... 31,956,825 25,069,207 Rydex S&P SmallCap 600 Pure Value ETF........................ 18,820,070 5,113,009 Rydex S&P SmallCap 600 Pure Growth ETF....................... 3,513,297 4,254,691 Rydex S&P Equal Weight Consumer Discretionary ETF............ 77,058,727 96,304,982 Rydex S&P Equal Weight Consumer Staples ETF.................. 6,962,914 2,432,602 Rydex S&P Equal Weight Energy ETF............................ 6,874,552 6,560,402 Rydex S&P Equal Weight Financials ETF........................ 8,445,313 -- Rydex S&P Equal Weight Health Care ETF....................... 61,094,105 16,309,360 Rydex S&P Equal Weight Industrials ETF....................... 7,018,597 5,533,450 Rydex S&P Equal Weight Materials ETF......................... 4,426,873 5,539,678 Rydex S&P Equal Weight Technology ETF........................ 15,430,437 18,879,668 Rydex S&P Equal Weight Utilities ETF......................... 2,496,243 2,071,848
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.................................. $19,418,873 $13,922,391 Rydex S&P 500 Pure Growth ETF................................. 12,696,003 15,719,211 Rydex S&P MidCap 400 Pure Value ETF........................... 8,554,269 8,444,582 Rydex S&P MidCap 400 Pure Growth ETF.......................... 11,244,201 10,018,714 Rydex S&P SmallCap 600 Pure Value ETF......................... 12,151,918 12,104,211 Rydex S&P SmallCap 600 Pure Growth ETF........................ 4,162,950 3,888,267 Rydex S&P Equal Weight Consumer Discretionary ETF............. 3,963,587 3,519,206 Rydex S&P Equal Weight Consumer Staples ETF................... 1,593,497 1,692,133 Rydex S&P Equal Weight Energy ETF............................. 4,100,756 4,754,584 Rydex S&P Equal Weight Financials ETF......................... 1,965,583 1,793,667 Rydex S&P Equal Weight Health Care ETF........................ 8,331,437 8,519,884 Rydex S&P Equal Weight Industrials ETF........................ 2,236,670 2,576,680 Rydex S&P Equal Weight Materials ETF.......................... 1,510,272 1,553,809 Rydex S&P Equal Weight Technology ETF......................... 5,793,278 5,474,232 Rydex S&P Equal Weight Utilities ETF.......................... 936,490 1,042,672
There were no purchases or sales of U.S. government or government agency obligations for the year ended October 31, 2008. At October 31, 2008, the identified cost of investments in securities owned by each fund for federal income tax purposes and the gross unrealized appreciation and depreciation were as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION/ COST APPRECIATION DEPRECIATION (DEPRECIATION) ----------- ------------ ------------ -------------- Rydex S&P 500 Pure Value ETF.................... $30,767,251 $ 64,221 $(12,883,768) $(12,819,547) Rydex S&P 500 Pure Growth ETF................... 38,957,515 554,612 (15,125,530) (14,570,918) Rydex S&P MidCap 400 Pure Value ETF............. 17,173,356 66,585 (7,113,691) (7,047,106) Rydex S&P MidCap 400 Pure Growth ETF............ 27,076,022 -- (9,490,805) (9,490,805) Rydex S&P SmallCap 600 Pure Value ETF........... 35,695,858 1,610,944 (11,799,607) (10,188,664) Rydex S&P SmallCap 600 Pure Growth ETF.......... 10,041,345 147,023 (2,940,766) (2,793,743) Rydex S&P Equal Weight Consumer Discretionary ETF........................................... 7,008,844 8,507 (3,296,530) (3,288,024) Rydex S&P Equal Weight Consumer Staples ETF..... 11,791,924 -- (1,432,261) (1,432,261) Rydex S&P Equal Weight Energy ETF............... 9,533,969 37,500 (3,614,115) (3,576,615) Rydex S&P Equal Weight Financials ETF........... 14,017,582 319,324 (3,632,479) (3,313,155) Rydex S&P Equal Weight Health Care ETF.......... 62,624,504 562,045 (14,659,429) (14,097,384) Rydex S&P Equal Weight Industrials ETF.......... 9,923,842 82,029 (2,864,236) (2,782,207) Rydex S&P Equal Weight Materials ETF............ 7,399,099 47,902 (2,295,458) (2,247,556) Rydex S&P Equal Weight Technology ETF........... 14,105,470 -- (6,609,409) (6,609,409) Rydex S&P Equal Weight Utilities ETF............ 5,770,026 -- (1,643,922) (1,643,922)
6. ACQUISTION 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 90 NOTES TO FINANCIAL STATEMENTS (concluded) -------------------------------------------------------------------------------- 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. 91 ANNUAL REPORT REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- The Board of Trustees and Shareholders of Rydex ETF Trust We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Rydex ETF Trust (the "Trust"), comprising, respectively, 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 (the "Funds"), fifteen of the funds comprising Rydex ETF Trust (the "Trust"), as of October 31, 2008, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for the period indicated therein. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds of the Rydex ETF Trust at October 31, 2008 mentioned above, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for the period indicated therein, in conformity with U.S. generally accepted accounting principles. ERNST & YOUNG LOGO Boston, Massachusetts December 23, 2008 92 SUPPLEMENTAL INFORMATION (Unaudited) -------------------------------------------------------------------------------- FEDERAL INCOME TAX INFORMATION For federal income tax purposes, the following information is furnished for the year ended October 31, 2008 in respect to percentage of ordinary distributions (net investment income plus short-term gains) which qualify for corporate dividends received deduction, designated qualified dividend income eligible for reduced taxes and distributions from long-term capital gains. These long-term capital gains distributions may be subject to a maximum tax rate of 15% as provided by the internal revenue code. The funds below hereby designate the maximum amount of such dividend allowable up to the amount of the dividends paid during the year.
DIVIDEND LONG TERM QUALIFIED RECEIVED CAPITAL GAINS DIVIDEND DEDUCTION DISTRIBUTION INCOME --------- ------------- --------- Rydex S&P 500 Pure Value ETF............................ 100.00% $ -- $957,765 Rydex S&P 500 Pure Growth ETF........................... 100.00% -- 408,338 Rydex S&P MidCap 400 Pure Value ETF..................... 99.83% -- 356,356 Rydex S&P MidCap 400 Pure Growth ETF.................... 73.08% -- 77,234 Rydex S&P SmallCap 600 Pure Value ETF................... 95.00% -- 563,755 Rydex S&P SmallCap 600 Pure Growth ETF.................. 100.00% -- 49,093 Rydex S&P Equal Weight Consumer Discretionary ETF....... 100.00% -- 197,459 Rydex S&P Equal Weight Consumer Staples ETF............. 100.00% -- 221,499 Rydex S&P Equal Weight Energy ETF....................... 28.06% 277,191 116,720 Rydex S&P Equal Weight Financials ETF................... 100.00% -- 159,704 Rydex S&P Equal Weight Health Care ETF.................. 99.00% -- 287,848 Rydex S&P Equal Weight Industrials ETF.................. 43.90% 106,100 144,102 Rydex S&P Equal Weight Materials ETF.................... 100.00% -- 185,402 Rydex S&P Equal Weight Technology ETF................... 100.00% -- 112,538 Rydex S&P Equal Weight Utilities ETF.................... 97.79% -- 209,781
PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC's website at http://www.sec.gov. Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, 2008 is also available, without charge and upon request, by (i) calling 1-800-820-0888; or accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov. 93 ANNUAL REPORT SUPPLEMENTAL INFORMATION (Unaudited) (concluded) -------------------------------------------------------------------------------- PROXY RESULTS Shareholders of Rydex ETF Trust voted on the following proposal at a meeting of shareholders held on October 4, 2007. The description of the proposal and number of shares voted are as follows:
SHARES VOTED SHARES VOTED SHARES VOTED FOR AGAINST ABSTAIN ------------ ------------ ------------ 1. To approve an Investment Management Advisory Agreement between Rydex ETF Trust and PADCO Advisors Inc. Rydex S&P 500 Pure Value ETF.......................... 651,883 15,376 14,933 Rydex S&P 500 Pure Growth ETF......................... 772,840 300 4,564 Rydex S&P MidCap 400 Pure Value ETF................... 262,397 1,083 81,321 Rydex S&P MidCap 400 Pure Growth ETF.................. 111,411 -- 49,439 Rydex S&P SmallCap 600 Pure Value ETF................. 340,514 32,601 4,928 Rydex S&P SmallCap 600 Pure Growth ETF................ 167,819 37 2,349 Rydex S&P Equal Weight Consumer Discretionary ETF..... 927,061 654 1,435 Rydex S&P Equal Weight Consumer Staples ETF........... 138,151 135 -- Rydex S&P Equal Weight Energy ETF..................... 90,565 495 615 Rydex S&P Equal Weight Financials ETF................. 79,217 565 -- Rydex S&P Equal Weight Health Care ETF................ 370,751 250 300 Rydex S&P Equal Weight Industrials ETF................ 98,069 534 89 Rydex S&P Equal Weight Materials ETF.................. 68,217 306 535 Rydex S&P Equal Weight Technology ETF................. 188,409 466 98 Rydex S&P Equal Weight Utilities ETF.................. 79,362 230 --
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. 94 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 158 VERBONCOEUR* Rydex Variable Trust - 2004 Trustee, Rydex Dynamic Funds - 2004 President (1952) Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Treasurer of Rydex Specialized Products, LLC (2005 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present). Executive Vice President of Rydex Investments (2000 to 2003) --------------------- MICHAEL P. Rydex Series Funds - 2005 150 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 2008); Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- JOHN O. DEMARET Rydex Series Funds - 1997 150 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 150 COLEHOUR Rydex Variable Trust - 1998 Trustee (1945) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2006 to present); Owner and President of Schield Management, registered investment advisor (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment advisor (1985 to 2005) --------------------- J. KENNETH Rydex Series Funds - 1995 150 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 150 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 150 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 150 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 150 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine -------------------------------------------------------------------------------- 95 ANNUAL REPORT INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (concluded) -------------------------------------------------------------------------------- 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 Investments (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice President of Accounting of Rydex Investments (2000 to 2003) JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Variable Trust, and Rydex (1966) Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004); Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)
* Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the Rydex Investments. 96 [GRAPHIC] [RYDEX INVESTMENTS LOGO] 9601 Blackwell Road o Suite 500 o Rockville, MD 20850 www.rydexinvestments.com o 800.820.0888 ETF2-ANN-1008X1009 [GRAPHIC] OCTOBER 31, 2008 RYDEX ETF TRUST ANNUAL REPORT RYDEX 2x S&P 500 ETF RYDEX INVERSE 2x S&P 500 ETF RYDEX 2x S&P MIDCAP 400 ETF RYDEX INVERSE 2x S&P MIDCAP 400 ETF RYDEX 2x RUSSELL 2000(R) ETF RYDEX INVERSE 2x RUSSELL 2000(R) ETF RYDEX 2x S&P SELECT SECTOR ENERGY ETF RYDEX INVERSE 2x S&P SELECT SECTOR ENERGY ETF RYDEX 2x S&P SELECT SECTOR FINANCIAL ETF RYDEX INVERSE 2x S&P SELECT SECTOR FINANCIAL ETF RYDEX 2x S&P SELECT SECTOR TECHNOLOGY ETF RYDEX INVERSE 2x S&P SELECT SECTOR TECHNOLOGY ETF RYDEX 2x S&P SELECT SECTOR HEALTH CARE ETF RYDEX INVERSE 2x S&P SELECT SECTOR HEALTH CARE ETF [RYDEX INVESTMENTS LOGO] ANNUAL REPORT 1 TABLE OF CONTENTS -------------------------------------------------------------------------------- LETTER TO OUR SHAREHOLDERS........................ 2 A BRIEF NOTE ON THE COMPOUNDING OF RETURNS........ 4 FEES & EXPENSES................................... 5 MANAGER'S ANALYSIS................................ 6 SCHEDULE OF INVESTMENTS........................... 27 STATEMENTS OF ASSETS AND LIABILITIES.............. 70 STATEMENTS OF OPERATIONS.......................... 74 STATEMENTS OF CHANGES IN NET ASSETS............... 78 FINANCIAL HIGHLIGHTS.............................. 85 NOTES TO FINANCIAL STATEMENTS..................... 92 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM'S REPORT.......................................... 101 SUPPLEMENTAL INFORMATION.......................... 102
ANNUAL REPORT 2 -------------------------------------------------------------------------------- DEAR SHAREHOLDER: Rydex is a proud participant in the ETF space with $1.7 billion in ETF assets and more than 30 exchange traded funds. Due to their convenience, transparency and ability to provide access to difficult to reach areas of the market, ETFs can play an important role in investor portfolios. Professional investment advisors are increasingly using ETFs in their portfolios. A 2008 survey of registered investment advisors (RIAs) by Rydex AdvisorBenchmarking(TM) revealed that three-quarters of RIAs now use ETFs and that ETFs now slightly edge out the use of stocks in advisor portfolios. Rydex believes that investor knowledge is paramount when contemplating investment options. While advisor ETF use is skyrocketing, because investors still have room for education on ETFs, Rydex now offers ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help advisors educate their clients on the nuances of ETFs. The program presents information on ETF topics in simple understandable language and is available via print and online. It's also free and can be requested on www.rydexinvestments.com web site. MARKET CONDITIONS The last 12 months proved to be the most extraordinarily difficult period for investors in nearly a century. The crisis that unfolded during the summer months hit nearly every conceivable asset class, resulting in huge declines in wealth regardless of how investors had structured their portfolios. Other than treasury bills and the U.S. dollar, no investment category was spared the panic that washed over the world's financial markets. In the U.S., the major stock market averages lost more than 20% of their value, while international markets fared worse. Emerging market stocks were hit particularly hard as shown by the nearly 60% decline in Chinese share prices. Although commodity prices rose over the period, that masks an astounding plunge from mid-summer highs. From early July -- when oil rose to nearly $150/barrel, commodities -- led by oil -- fell more than 30%. Sector selection strategies offered little respite. Only consumer staples stocks, the most defensive in the S&P 500 Sector Index series, provided some degree of protection as that index held losses to less than 1.5%. Other traditional safe havens such as utilities and health care were down between 15% -- 25% while financial stocks, which are at the epicenter of the crisis, fell nearly 43%. The events of late September completely overwhelmed everything that had come before. In an incredibly brief period, the entire global financial system seized up as the lubricant of any economy -- bank lending -- came to a complete halt. The resulting crash in global stock markets was as steep and deep as anything witnessed since the crash of 1929 and continues to this day. The Wall Street model of large, aggressive, risk-taking investment banks was completely swept aside as financial titans such as Merrill Lynch, Morgan Stanley, Goldman Sachs and Lehman Brothers collapsed, merged with, or were reborn as commercial banks. Financial dominos tumbled as a wave of commercial bank failures -- the most since the S&L crisis of the 1990s -- unfolded in the third quarter, culminating with the collapse of Washington Mutual, the largest bank failure in U.S. history. The other huge and profound shift is the nationalization of the global financial system. The takeover of Fannie Mae and Freddie Mac and AIG, the seizure of IndyMac Bank and Washington Mutual and the forced merger of Wachovia, along with blanket guarantees of mortgage-backed securities, whole loans, intra- bank loans, money market funds and bank deposits (both here and in Europe) point to a near takeover of the global financial system by national governments. In this history-making period, governments at all levels moved with unprecedented speed, scope and coordination to save the financial system and with it the global economy. In the U.S. this culminated with a $700 billion plan put forward by the U.S. Treasury to essentially buy up all the bad mortgage assets clogging the financial system. Rejection of that plan by the House of Representatives late in September sent the markets into a tailspin with the Dow suffering its biggest point drop in history and sending the index to three-year lows. Treasury bill yields fell to near zero and interest rates on longer-dated treasuries fell to a decade low in a massive flight to safety. It is not all doom and gloom, however. This environment has broken the commodity bubble and has resulted in a huge slowdown in global inflation. This helps the emerging markets, whose economies and markets have been pummeled by the rise in food and energy costs. It has also ushered in a period of dollar strength, which gives the Fed additional room to ease. Moreover, interest rates could hardly be lower and stocks are cheaper than they have been in some time. With the massive amounts of liquidity pumped into the system, stocks could rally sharply in the months ahead -- they have repeatedly shown signs of doing throughout the crisis. Having gone through at least four false bottoms so far this year -- Societe Generale, Bear Stearns, Fannie Mae /Freddie Mac and Lehman Brothers -- the question is: Can any rally be sustained? The key to that question is fairly straightforward. The allocation of credit in the bond and money markets needs to resume. No recovery in stocks is possible without it. While capital has been thrown at the markets and recovery plans announced, the mountain of bad debt is still sitting on bank balance sheets. The fuel is in place for the markets to recover -- they always do. This process is likely to be lengthy, though. Navigating through this difficult environment will require carefully thought-out investment strategies and the discipline to stay the course. ANNUAL REPORT 3 -------------------------------------------------------------------------------- These tumultuous markets did not leave the ETF space unscathed. According to the Investment Company Institute, over the past 12 months, while the number of ETFs on the market has increased 19% (from 586 in October 2007 to 698 in October 2008), ETF assets decreased $105.86 billion, or 18%. Despite the market's erosion of assets, with their numerous benefits, ETFs can provide a suitable choice for investors looking for convenient access to the markets. 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 innovative ETF choices to meet your investment needs. Sincerely, /s/ DAVID C. REILLY, CFA David C. Reilly, CFA Director of Portfolio Strategies ANNUAL REPORT 4 A BRIEF NOTE ON THE COMPOUNDING OF RETURNS -------------------------------------------------------------------------------- The Funds described in this report are benchmarked daily to leveraged or inverse versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns. Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods. AN EXAMPLE OF COMPOUNDING For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6% gain and an expectation that the fund will rise by 9%. On the same day, the fund's net asset value ("NAV") increases from $10.00 to $10.90 for a gain of 9.0% -- in line with its benchmark. On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.
INDEX INDEX FUND FUND FUND LEVEL PERFORMANCE EXPECTATION NAV PERFORMANCE ASSESSMENT --------------------------------------------------------------------------------------------------------------- Start 100 $10.00 Day 1 106 6.00% 9.00% $10.90 9.00% In line Day 2 99 (6.60)% (9.90)% $ 9.82 (9.90)% In line Cumulative (1.00)% (1.50)% (1.80)% (0.30)% ---------------------------------------------------------------------------------------------------------------
As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index. 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. ANNUAL REPORT 5 -------------------------------------------------------------------------------- SHAREHOLDER EXPENSE EXAMPLE As a shareholder of the Rydex ETF Trust, you incur transaction costs such as creation and redemption fees or brokerage charges, and ongoing costs including advisory fees, trustee fees and, if applicable, distribution fees. All other Trust expenses are paid by the advisor. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example in the table is based on an investment of $1,000 invested on April 30, 2008 and held for the six months ended October 31, 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 4/30/08 10/31/08 4/30/08 TO 10/31/08 --------- --------- ------------------- ACTUAL Rydex 2x S&P 500 ETF*................................. $1,000 $2,025.60 $5.32 Rydex Inverse 2x S&P 500 ETF*......................... $1,000 $ 327.90 $2.34 Rydex 2x MidCap 400 ETF*.............................. $1,000 $ 298.70 $2.29 Rydex Inverse 2x S&P MidCap 400 ETF*.................. $1,000 $2,218.10 $5.66 Rydex 2x Russell 2000 ETF*............................ $1,000 $ 340.90 $2.36 Rydex Inverse 2x Russell 2000 ETF*.................... $1,000 $1,836.20 $4.99 Rydex 2x S&P Select Sector Energy ETF**............... $1,000 $ 270.60 $1.74 Rydex Inverse 2x S&P Select Sector Energy ETF**....... $1,000 $1,497.50 $3.42 Rydex 2x S&P Select Sector Financial ETF**............ $1,000 $ 354.90 $1.85 Rydex Inverse 2x S&P Select Sector Financial ETF**.... $1,000 $ 958.10 $2.68 Rydex 2x S&P Select Sector Technology ETF**........... $1,000 $ 416.40 $1.94 Rydex Inverse 2x S&P Select Sector Technology ETF**... $1,000 $1,727.90 $3.73 Rydex 2x S&P Select Sector Health Care ETF**.......... $1,000 $ 706.70 $2.33 Rydex Inverse 2x S&P Select Sector Health Care ETF**.. $1,000 $1,120.40 $2.90 HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES) Rydex 2x S&P 500 ETF*................................. $1,000 $1,021.62 $3.56 Rydex Inverse 2x S&P 500 ETF*......................... $1,000 $1,021.62 $3.56 Rydex 2x MidCap 400 ETF*.............................. $1,000 $1,021.62 $3.56 Rydex Inverse 2x S&P MidCap 400 ETF*.................. $1,000 $1,021.62 $3.56 Rydex 2x Russell 2000 ETF*............................ $1,000 $1,021.62 $3.56 Rydex Inverse 2x Russell 2000 ETF*.................... $1,000 $1,021.62 $3.56 Rydex 2x S&P Select Sector Energy ETF**............... $1,000 $1,016.80 $2.76 Rydex Inverse 2x S&P Select Sector Energy ETF**....... $1,000 $1,016.80 $2.76 Rydex 2x S&P Select Sector Financial ETF**............ $1,000 $1,016.80 $2.76 Rydex Inverse 2x S&P Select Sector Financial ETF**.... $1,000 $1,016.80 $2.76 Rydex 2x S&P Select Sector Technology ETF**........... $1,000 $1,016.80 $2.76 Rydex Inverse 2x S&P Select Sector Technology ETF**... $1,000 $1,016.80 $2.76 Rydex 2x S&P Select Sector Health Care ETF**.......... $1,000 $1,016.80 $2.76 Rydex Inverse 2x S&P Select Sector Health Care ETF**.. $1,000 $1,016.80 $2.76
-------- * Expenses are equal to the Fund's annualized expense ratio of 0.70% multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period). ** Fund commenced operations on June 10, 2008. Expenses are equal to the Fund's annualized expense ratio of 0.70% multiplied by the average account value over the period, multiplied by 143/366 (to reflect the period from inception to date). ANNUAL REPORT 6 RYDEX 2x S&P 500 ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Rydex 2x S&P 500 ETF returned -62.68% while the S&P 500 returned -34.11% over the same time period. Financials were the biggest performance detraction, down 48.99% over the same period, followed by the beaten-down technology sector, which returned -40.69%. While they were negative over the same time period, defense, consumer staples and health care better weathered the economic storm. Since its inception on 11/5/2007, Rydex 2x S&P 500 ETF maintained a daily correlation of 100% to its benchmark of 200% of the daily price movement of the S&P 500. The year was marked by stunning failures in the financial markets, brought on by the implosion of the housing-backed debt markets, historic market volatility and a global economic meltdown. Major financial institutions either went bankrupt or had to receive assistance from the federal government in the form of the Department of Treasury's Troubled Assets Relief (TARP) Program. Inter-bank lending nearly ground to a halt as credit became a major concern globally. The Volatility Index(R) (VIX) Index jumped to historic highs in September and October as the financial crisis culminated with the Securities and Exchange Commission (SEC) taking emergency action to ban the short selling of more than 900 securities. This increased volatility in the markets contributed widely to the daily tracking variances seen in September and October. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: NOVEMBER 5, 2007 - OCTOBER 31, 2008 (PERFORMANCE GRAPH)
RYDEX 2X S&P 500 S&P 500 TOTAL RETURN ETF INDEX -------- ------------ 11/5/2007 10000 10000 11/6/2007 9757 10121 11/7/2007 10332 9829 11/8/2007 10352 9823 11/9/2007 10667 9683 11/10/2007 10667 9683 11/11/2007 10667 9683 11/12/2007 10880 9587 11/13/2007 10244 9869 11/14/2007 10399 9802 11/15/2007 10667 9673 11/16/2007 10571 9723 11/17/2007 10571 9723 11/18/2007 10571 9723 11/19/2007 10940 9554 11/20/2007 10845 9597 11/21/2007 11209 9445 11/22/2007 11209 9445 11/23/2007 10841 9605 11/24/2007 10841 9605 11/25/2007 10841 9605 11/26/2007 11351 9382 11/27/2007 10997 9523 11/28/2007 10368 9798 11/29/2007 10367 9803 11/30/2007 10205 9879 12/1/2007 10205 9879 12/2/2007 10205 9879 12/3/2007 10337 9822 12/4/2007 10475 9757 12/5/2007 10155 9911 12/6/2007 9851 10061 12/7/2007 9901 10043 12/8/2007 9901 10043 12/9/2007 9901 10043 12/10/2007 9744 10119 12/11/2007 10252 9863 12/12/2007 10120 9924 12/13/2007 10100 9937 12/14/2007 10389 9800 12/15/2007 10389 9800 12/16/2007 10389 9800 12/17/2007 10701 9653 12/18/2007 10577 9714 12/19/2007 10608 9701 12/20/2007 10495 9751 12/21/2007 10144 9915 12/22/2007 10144 9915 12/23/2007 10144 9915 12/24/2007 9980 9996 12/25/2007 9980 9996 12/26/2007 9980 10004 12/27/2007 10260 9864 12/28/2007 10252 9878 12/29/2007 10252 9878 12/30/2007 10252 9878 12/31/2007 10411 9811 1/1/2008 10411 9811 1/2/2008 10696 9671 1/3/2008 10703 9671 1/4/2008 11245 9434 1/5/2008 11245 9434 1/6/2008 11245 9434 1/7/2008 11163 9464 1/8/2008 11583 9294 1/9/2008 11265 9421 1/10/2008 11096 9496 1/11/2008 11396 9368 1/12/2008 11396 9368 1/13/2008 11396 9368 1/14/2008 11159 9469 1/15/2008 11719 9233 1/16/2008 11863 9183 1/17/2008 12556 8916 1/18/2008 12709 8862 1/19/2008 12709 8862 1/20/2008 12709 8862 1/21/2008 12709 8862 1/22/2008 13012 8764 1/23/2008 12460 8952 1/24/2008 12225 9042 1/25/2008 12613 8899 1/26/2008 12613 8899 1/27/2008 12613 8899 1/28/2008 12168 9055 1/29/2008 12034 9112 1/30/2008 12159 9069 1/31/2008 11777 9222 2/1/2008 11447 9335 2/2/2008 11447 9335 2/3/2008 11447 9335 2/4/2008 11690 9238 2/5/2008 12433 8943 2/6/2008 12621 8878 2/7/2008 12418 8951 2/8/2008 12536 8913 2/9/2008 12536 8913 2/10/2008 12536 8913 2/11/2008 12392 8966 2/12/2008 12208 9032 2/13/2008 11880 9158 2/14/2008 12192 9035 2/15/2008 12181 9044 2/16/2008 12181 9044 2/17/2008 12181 9044 2/18/2008 12181 9044 2/19/2008 12201 9036 2/20/2008 12002 9112 2/21/2008 12300 8998 2/22/2008 12100 9070 2/23/2008 12100 9070 2/24/2008 12100 9070 2/25/2008 11781 9195 2/26/2008 11619 9259 2/27/2008 11642 9253 2/28/2008 11848 9171 2/29/2008 12488 8923 3/1/2008 12488 8923 3/2/2008 12488 8923 3/3/2008 12483 8928 3/4/2008 12574 8897 3/5/2008 12432 8948 3/6/2008 12978 8752 3/7/2008 13206 8679 3/8/2008 13206 8679 3/9/2008 13206 8679 3/10/2008 13608 8545 3/11/2008 12610 8863 3/12/2008 12831 8786 3/13/2008 12701 8831 3/14/2008 13235 8648 3/15/2008 13235 8648 3/16/2008 13235 8648 3/17/2008 13476 8571 3/18/2008 12339 8935 3/19/2008 12945 8718 3/20/2008 12339 8927 3/21/2008 12339 8927 3/22/2008 12339 8927 3/23/2008 12339 8927 3/24/2008 11964 9064 3/25/2008 11910 9085 3/26/2008 12120 9006 3/27/2008 12393 8904 3/28/2008 12594 8834 3/29/2008 12594 8834 3/30/2008 12594 8834 3/31/2008 12456 8884 4/1/2008 11565 9203 4/2/2008 11608 9187 4/3/2008 11580 9199 4/4/2008 11568 9207 4/5/2008 11568 9207 4/6/2008 11568 9207 4/7/2008 11534 9221 4/8/2008 11646 9177 4/9/2008 11835 9104 4/10/2008 11732 9145 4/11/2008 12214 8959 4/12/2008 12214 8959 4/13/2008 12214 8959 4/14/2008 12298 8929 4/15/2008 12185 8970 4/16/2008 11636 9175 4/17/2008 11622 9181 4/18/2008 11204 9347 4/19/2008 11204 9347 4/20/2008 11204 9347 4/21/2008 11241 9333 4/22/2008 11441 9251 4/23/2008 11377 9278 4/24/2008 11233 9338 4/25/2008 11092 9398 4/26/2008 11092 9398 4/27/2008 11092 9398 4/28/2008 11116 9389 4/29/2008 11203 9353 4/30/2008 11292 9317 5/1/2008 10905 9478 5/2/2008 10841 9509 5/3/2008 10841 9509 5/4/2008 10841 9509 5/5/2008 10940 9467 5/6/2008 10772 9540 5/7/2008 11157 9371 5/8/2008 11076 9406 5/9/2008 11226 9344 5/10/2008 11226 9344 5/11/2008 11226 9344 5/12/2008 10979 9447 5/13/2008 10984 9446 5/14/2008 10896 9485 5/15/2008 10661 9588 5/16/2008 10641 9600 5/17/2008 10641 9600 5/18/2008 10641 9600 5/19/2008 10621 9609 5/20/2008 10817 9520 5/21/2008 11168 9368 5/22/2008 11109 9394 5/23/2008 11406 9270 5/24/2008 11406 9270 5/25/2008 11406 9270 5/26/2008 11406 9270 5/27/2008 11255 9333 5/28/2008 11161 9372 5/29/2008 11043 9423 5/30/2008 11018 9438 5/31/2008 11018 9438 6/1/2008 11018 9438 6/2/2008 11246 9339 6/3/2008 11377 9285 6/4/2008 11376 9287 6/5/2008 10932 9468 6/6/2008 11616 9177 6/7/2008 11616 9177 6/8/2008 11616 9177 6/9/2008 11594 9185 6/10/2008 11658 9162 6/11/2008 12044 9009 6/12/2008 11964 9040 6/13/2008 11611 9176 6/14/2008 11611 9176 6/15/2008 11611 9176 6/16/2008 11611 9177 6/17/2008 11771 9115 6/18/2008 11996 9026 6/19/2008 11908 9062 6/20/2008 12357 8894 6/21/2008 12357 8894 6/22/2008 12357 8894 6/23/2008 12353 8895 6/24/2008 12425 8870 6/25/2008 12283 8922 6/26/2008 12997 8663 6/27/2008 13093 8631 6/28/2008 13093 8631 6/29/2008 13093 8631 6/30/2008 13071 8642 7/1/2008 12968 8677 7/2/2008 13443 8519 7/3/2008 13424 8529 7/4/2008 13424 8529 7/5/2008 13424 8529 7/6/2008 13424 8529 7/7/2008 13652 8457 7/8/2008 13178 8605 7/9/2008 13780 8410 7/10/2008 13586 8469 7/11/2008 13888 8376 7/12/2008 13888 8376 7/13/2008 13888 8376 7/14/2008 14143 8300 7/15/2008 14455 8210 7/16/2008 13738 8417 7/17/2008 13416 8518 7/18/2008 13415 8520 7/19/2008 13415 8520 7/20/2008 13415 8520 7/21/2008 13427 8516 7/22/2008 13065 8631 7/23/2008 12960 8666 7/24/2008 13559 8466 7/25/2008 13461 8501 7/26/2008 13461 8501 7/27/2008 13461 8501 7/28/2008 13958 8343 7/29/2008 13313 8539 7/30/2008 12869 8682 7/31/2008 13204 8569 8/1/2008 13356 8522 8/2/2008 13356 8522 8/3/2008 13356 8522 8/4/2008 13601 8445 8/5/2008 12820 8689 8/6/2008 12721 8722 8/7/2008 13174 8566 8/8/2008 12557 8771 8/9/2008 12557 8771 8/10/2008 12557 8771 8/11/2008 12375 8834 8/12/2008 12670 8728 8/13/2008 12741 8705 8/14/2008 12603 8754 8/15/2008 12500 8790 8/16/2008 12500 8790 8/17/2008 12500 8790 8/18/2008 12876 8658 8/19/2008 13116 8578 8/20/2008 12956 8632 8/21/2008 12894 8654 8/22/2008 12601 8753 8/23/2008 12601 8753 8/24/2008 12601 8753 8/25/2008 13096 8582 8/26/2008 13007 8613 8/27/2008 12799 8684 8/28/2008 12420 8814 8/29/2008 12756 8693 8/30/2008 12756 8693 8/31/2008 12756 8693 9/1/2008 12756 8693 9/2/2008 12868 8658 9/3/2008 12908 8645 9/4/2008 13683 8386 9/5/2008 13564 8424 9/6/2008 13564 8424 9/7/2008 13564 8424 9/8/2008 13009 8598 9/9/2008 13902 8305 9/10/2008 13736 8356 9/11/2008 13345 8474 9/12/2008 13291 8492 9/13/2008 13291 8492 9/14/2008 13291 8492 9/15/2008 14538 8092 9/16/2008 14045 8234 9/17/2008 15363 7846 9/18/2008 14035 8188 9/19/2008 12974 8518 9/20/2008 12974 8518 9/21/2008 12974 8518 9/22/2008 13909 8193 9/23/2008 14353 8065 9/24/2008 14305 8049 9/25/2008 13687 8207 9/26/2008 13619 8235 9/27/2008 13619 8235 9/28/2008 13619 8235 9/29/2008 15559 7511 9/30/2008 14417 7919 10/1/2008 14575 7884 10/2/2008 15756 7568 10/3/2008 16103 7465 10/4/2008 16103 7465 10/5/2008 16103 7465 10/6/2008 17250 7178 10/7/2008 19382 6766 10/8/2008 19939 6693 10/9/2008 22621 6183 10/10/2008 23337 6111 10/11/2008 23337 6111 10/12/2008 23337 6111 10/13/2008 17896 6819 10/14/2008 18496 6783 10/15/2008 21852 6171 10/16/2008 20075 6433 10/17/2008 20287 6393 10/18/2008 20287 6393 10/19/2008 20287 6393 10/20/2008 18396 6698 10/21/2008 19611 6492 10/22/2008 21723 6097 10/23/2008 21314 6174 10/24/2008 22994 5961 10/25/2008 22994 5961 10/26/2008 22994 5961 10/27/2008 24333 5772 10/28/2008 18940 6395 10/29/2008 19941 6325 10/30/2008 18516 6489 10/31/2008 17827 6589
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (11/05/2007) --------------- RYDEX 2X S&P 500 ETF............................................. -62.68% S&P 500 TOTAL RETURN INDEX....................................... -34.11%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 7 RYDEX 2x S&P 500 ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 3.75% GENERAL ELECTRIC CO. 1.99% PROCTER & GAMBLE CO. 1.91% MICROSOFT CORP. 1.71% JOHNSON & JOHNSON 1.67% AT&T, INC. 1.54% CHEVRON CORP. 1.49% JPMORGAN CHASE & CO. 1.48% INTERNATIONAL BUSINESS MACHINES CORP. 1.23% WAL-MART STORES, INC. 1.22% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Industrials 21.58 Information Technology 13.86 Financials 13.14 Health Care 12.20 Energy 11.58 Consumer Staples 11.36 Consumer Discretionary 7.23 Utilities 3.37 Telecommunication Services 2.91 Materials 2.77
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Sector Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. ANNUAL REPORT 8 RYDEX INVERSE 2x S&P 500 ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Rydex Inverse 2x S&P 500 ETF delivered a 78.27% total return compared to the S&P 500, which came in at -34.11%. The financial industry made headlines with financials down -48.99%, followed closely by the beaten-down technology sector, at -40.69%. Defense, consumer staples and health care were all negative over the same time period, though they all held their own in the face of a troubled economy. Since its inception on 11/5/2007, Rydex Inverse S&P 500 ETF achieved a daily correlation of 99% to its benchmark of -200% of the daily price movement of the S&P 500 Index. The year was marked by stunning failures in the financial markets, brought on by the implosion of the housing-backed debt markets, historic market volatility and a global economic meltdown. Major financial institutions either went bankrupt or had to receive assistance from the federal government in the form of the Department of Treasury's Troubled Assets Relief (TARP) Program. Inter-bank lending nearly ground to a halt as credit became a major concern globally. The Volatility Index(R) (VIX) Index jumped to historic highs in September and October as the financial crisis culminated with the Securities and Exchange Commission (SEC) taking emergency action to ban the short selling of more than 900 securities. This increased volatility in the markets contributed widely to the daily tracking variances seen in September and October. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: NOVEMBER 5, 2007 - OCTOBER 31, 2008 (Performance Graph)
RYDEX INVERSE S&P 500 2X S&P TOTAL RETURN 500 ETF INDEX ------------- ------------ 11/5/2007 10000 10000 11/6/2007 9757 10121 11/7/2007 10332 9829 11/8/2007 10352 9823 11/9/2007 10667 9683 11/10/2007 10667 9683 11/11/2007 10667 9683 11/12/2007 10880 9587 11/13/2007 10244 9869 11/14/2007 10399 9802 11/15/2007 10667 9673 11/16/2007 10571 9723 11/17/2007 10571 9723 11/18/2007 10571 9723 11/19/2007 10940 9554 11/20/2007 10845 9597 11/21/2007 11209 9445 11/22/2007 11209 9445 11/23/2007 10841 9605 11/24/2007 10841 9605 11/25/2007 10841 9605 11/26/2007 11351 9382 11/27/2007 10997 9523 11/28/2007 10368 9798 11/29/2007 10367 9803 11/30/2007 10205 9879 12/1/2007 10205 9879 12/2/2007 10205 9879 12/3/2007 10337 9822 12/4/2007 10475 9757 12/5/2007 10155 9911 12/6/2007 9851 10061 12/7/2007 9901 10043 12/8/2007 9901 10043 12/9/2007 9901 10043 12/10/2007 9744 10119 12/11/2007 10252 9863 12/12/2007 10120 9924 12/13/2007 10100 9937 12/14/2007 10389 9800 12/15/2007 10389 9800 12/16/2007 10389 9800 12/17/2007 10701 9653 12/18/2007 10577 9714 12/19/2007 10608 9701 12/20/2007 10495 9751 12/21/2007 10144 9915 12/22/2007 10144 9915 12/23/2007 10144 9915 12/24/2007 9980 9996 12/25/2007 9980 9996 12/26/2007 9980 10004 12/27/2007 10260 9864 12/28/2007 10252 9878 12/29/2007 10252 9878 12/30/2007 10252 9878 12/31/2007 10411 9811 1/1/2008 10411 9811 1/2/2008 10696 9671 1/3/2008 10703 9671 1/4/2008 11245 9434 1/5/2008 11245 9434 1/6/2008 11245 9434 1/7/2008 11163 9464 1/8/2008 11583 9294 1/9/2008 11265 9421 1/10/2008 11096 9496 1/11/2008 11396 9368 1/12/2008 11396 9368 1/13/2008 11396 9368 1/14/2008 11159 9469 1/15/2008 11719 9233 1/16/2008 11863 9183 1/17/2008 12556 8916 1/18/2008 12709 8862 1/19/2008 12709 8862 1/20/2008 12709 8862 1/21/2008 12709 8862 1/22/2008 13012 8764 1/23/2008 12460 8952 1/24/2008 12225 9042 1/25/2008 12613 8899 1/26/2008 12613 8899 1/27/2008 12613 8899 1/28/2008 12168 9055 1/29/2008 12034 9112 1/30/2008 12159 9069 1/31/2008 11777 9222 2/1/2008 11447 9335 2/2/2008 11447 9335 2/3/2008 11447 9335 2/4/2008 11690 9238 2/5/2008 12433 8943 2/6/2008 12621 8878 2/7/2008 12418 8951 2/8/2008 12536 8913 2/9/2008 12536 8913 2/10/2008 12536 8913 2/11/2008 12392 8966 2/12/2008 12208 9032 2/13/2008 11880 9158 2/14/2008 12192 9035 2/15/2008 12181 9044 2/16/2008 12181 9044 2/17/2008 12181 9044 2/18/2008 12181 9044 2/19/2008 12201 9036 2/20/2008 12002 9112 2/21/2008 12300 8998 2/22/2008 12100 9070 2/23/2008 12100 9070 2/24/2008 12100 9070 2/25/2008 11781 9195 2/26/2008 11619 9259 2/27/2008 11642 9253 2/28/2008 11848 9171 2/29/2008 12488 8923 3/1/2008 12488 8923 3/2/2008 12488 8923 3/3/2008 12483 8928 3/4/2008 12574 8897 3/5/2008 12432 8948 3/6/2008 12978 8752 3/7/2008 13206 8679 3/8/2008 13206 8679 3/9/2008 13206 8679 3/10/2008 13608 8545 3/11/2008 12610 8863 3/12/2008 12831 8786 3/13/2008 12701 8831 3/14/2008 13235 8648 3/15/2008 13235 8648 3/16/2008 13235 8648 3/17/2008 13476 8571 3/18/2008 12339 8935 3/19/2008 12945 8718 3/20/2008 12339 8927 3/21/2008 12339 8927 3/22/2008 12339 8927 3/23/2008 12339 8927 3/24/2008 11964 9064 3/25/2008 11910 9085 3/26/2008 12120 9006 3/27/2008 12393 8904 3/28/2008 12594 8834 3/29/2008 12594 8834 3/30/2008 12594 8834 3/31/2008 12456 8884 4/1/2008 11565 9203 4/2/2008 11608 9187 4/3/2008 11580 9199 4/4/2008 11568 9207 4/5/2008 11568 9207 4/6/2008 11568 9207 4/7/2008 11534 9221 4/8/2008 11646 9177 4/9/2008 11835 9104 4/10/2008 11732 9145 4/11/2008 12214 8959 4/12/2008 12214 8959 4/13/2008 12214 8959 4/14/2008 12298 8929 4/15/2008 12185 8970 4/16/2008 11636 9175 4/17/2008 11622 9181 4/18/2008 11204 9347 4/19/2008 11204 9347 4/20/2008 11204 9347 4/21/2008 11241 9333 4/22/2008 11441 9251 4/23/2008 11377 9278 4/24/2008 11233 9338 4/25/2008 11092 9398 4/26/2008 11092 9398 4/27/2008 11092 9398 4/28/2008 11116 9389 4/29/2008 11203 9353 4/30/2008 11292 9317 5/1/2008 10905 9478 5/2/2008 10841 9509 5/3/2008 10841 9509 5/4/2008 10841 9509 5/5/2008 10940 9467 5/6/2008 10772 9540 5/7/2008 11157 9371 5/8/2008 11076 9406 5/9/2008 11226 9344 5/10/2008 11226 9344 5/11/2008 11226 9344 5/12/2008 10979 9447 5/13/2008 10984 9446 5/14/2008 10896 9485 5/15/2008 10661 9588 5/16/2008 10641 9600 5/17/2008 10641 9600 5/18/2008 10641 9600 5/19/2008 10621 9609 5/20/2008 10817 9520 5/21/2008 11168 9368 5/22/2008 11109 9394 5/23/2008 11406 9270 5/24/2008 11406 9270 5/25/2008 11406 9270 5/26/2008 11406 9270 5/27/2008 11255 9333 5/28/2008 11161 9372 5/29/2008 11043 9423 5/30/2008 11018 9438 5/31/2008 11018 9438 6/1/2008 11018 9438 6/2/2008 11246 9339 6/3/2008 11377 9285 6/4/2008 11376 9287 6/5/2008 10932 9468 6/6/2008 11616 9177 6/7/2008 11616 9177 6/8/2008 11616 9177 6/9/2008 11594 9185 6/10/2008 11658 9162 6/11/2008 12044 9009 6/12/2008 11964 9040 6/13/2008 11611 9176 6/14/2008 11611 9176 6/15/2008 11611 9176 6/16/2008 11611 9177 6/17/2008 11771 9115 6/18/2008 11996 9026 6/19/2008 11908 9062 6/20/2008 12357 8894 6/21/2008 12357 8894 6/22/2008 12357 8894 6/23/2008 12353 8895 6/24/2008 12425 8870 6/25/2008 12283 8922 6/26/2008 12997 8663 6/27/2008 13093 8631 6/28/2008 13093 8631 6/29/2008 13093 8631 6/30/2008 13071 8642 7/1/2008 12968 8677 7/2/2008 13443 8519 7/3/2008 13424 8529 7/4/2008 13424 8529 7/5/2008 13424 8529 7/6/2008 13424 8529 7/7/2008 13652 8457 7/8/2008 13178 8605 7/9/2008 13780 8410 7/10/2008 13586 8469 7/11/2008 13888 8376 7/12/2008 13888 8376 7/13/2008 13888 8376 7/14/2008 14143 8300 7/15/2008 14455 8210 7/16/2008 13738 8417 7/17/2008 13416 8518 7/18/2008 13415 8520 7/19/2008 13415 8520 7/20/2008 13415 8520 7/21/2008 13427 8516 7/22/2008 13065 8631 7/23/2008 12960 8666 7/24/2008 13559 8466 7/25/2008 13461 8501 7/26/2008 13461 8501 7/27/2008 13461 8501 7/28/2008 13958 8343 7/29/2008 13313 8539 7/30/2008 12869 8682 7/31/2008 13204 8569 8/1/2008 13356 8522 8/2/2008 13356 8522 8/3/2008 13356 8522 8/4/2008 13601 8445 8/5/2008 12820 8689 8/6/2008 12721 8722 8/7/2008 13174 8566 8/8/2008 12557 8771 8/9/2008 12557 8771 8/10/2008 12557 8771 8/11/2008 12375 8834 8/12/2008 12670 8728 8/13/2008 12741 8705 8/14/2008 12603 8754 8/15/2008 12500 8790 8/16/2008 12500 8790 8/17/2008 12500 8790 8/18/2008 12876 8658 8/19/2008 13116 8578 8/20/2008 12956 8632 8/21/2008 12894 8654 8/22/2008 12601 8753 8/23/2008 12601 8753 8/24/2008 12601 8753 8/25/2008 13096 8582 8/26/2008 13007 8613 8/27/2008 12799 8684 8/28/2008 12420 8814 8/29/2008 12756 8693 8/30/2008 12756 8693 8/31/2008 12756 8693 9/1/2008 12756 8693 9/2/2008 12868 8658 9/3/2008 12908 8645 9/4/2008 13683 8386 9/5/2008 13564 8424 9/6/2008 13564 8424 9/7/2008 13564 8424 9/8/2008 13009 8598 9/9/2008 13902 8305 9/10/2008 13736 8356 9/11/2008 13345 8474 9/12/2008 13291 8492 9/13/2008 13291 8492 9/14/2008 13291 8492 9/15/2008 14538 8092 9/16/2008 14045 8234 9/17/2008 15363 7846 9/18/2008 14035 8188 9/19/2008 12974 8518 9/20/2008 12974 8518 9/21/2008 12974 8518 9/22/2008 13909 8193 9/23/2008 14353 8065 9/24/2008 14305 8049 9/25/2008 13687 8207 9/26/2008 13619 8235 9/27/2008 13619 8235 9/28/2008 13619 8235 9/29/2008 15559 7511 9/30/2008 14417 7919 10/1/2008 14575 7884 10/2/2008 15756 7568 10/3/2008 16103 7465 10/4/2008 16103 7465 10/5/2008 16103 7465 10/6/2008 17250 7178 10/7/2008 19382 6766 10/8/2008 19939 6693 10/9/2008 22621 6183 10/10/2008 23337 6111 10/11/2008 23337 6111 10/12/2008 23337 6111 10/13/2008 17896 6819 10/14/2008 18496 6783 10/15/2008 21852 6171 10/16/2008 20075 6433 10/17/2008 20287 6393 10/18/2008 20287 6393 10/19/2008 20287 6393 10/20/2008 18396 6698 10/21/2008 19611 6492 10/22/2008 21723 6097 10/23/2008 21314 6174 10/24/2008 22994 5961 10/25/2008 22994 5961 10/26/2008 22994 5961 10/27/2008 24333 5772 10/28/2008 18940 6395 10/29/2008 19941 6325 10/30/2008 18516 6489 10/31/2008 17827 6589
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (11/05/2007) --------------- RYDEX INVERSE 2X S&P 500 ETF..................................... 78.27% S&P 500 TOTAL RETURN INDEX....................................... -34.11%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 9 RYDEX 2x S&P MIDCAP 400 ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 11/5/2007, Rydex 2x S&P MidCap 400 ETF returned -63.12%. Over the year, its benchmark, the S&P 400, returned -34.44%. Mid-cap stocks underperformed their large-cap counterparts, though in these troubled economic times, all market caps took a hit. Negative returns from the industrial and technology sector contributed most to this ETF's negative performance. Up through May of 2007 mid-cap stocks did see some strength -- buoyed by the energy, materials and industrial sectors -- which all benefited from high oil and commodity prices in the first half of the year. However, in June, as recession fears increased on the tail of the burgeoning global financial meltdown, energy and commodity prices plummeted, taking the respective leaders in their industries to new lows. Of course, the year was marked by a historic failure in financials, leading to a significant jump in the Volatility Index(R) (VIX) and causing interbank lending to grind to a halt. This increased volatility may have contributed to wider tracking variances in September and October. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: NOVEMBER 5, 2007 - OCTOBER 31, 2008 (PERFORMANCE GRAPH)
RYDEX 2X S&P MIDCAP S&P MIDCAP 400 TOTAL 400 ETF RETURN INDEX ---------- ------------ 11/5/2007 10000 10000 11/6/2007 10245 10125 11/7/2007 9771 9893 11/8/2007 9849 9931 11/9/2007 9584 9799 11/10/2007 9584 9799 11/11/2007 9584 9799 11/12/2007 9293 9651 11/13/2007 9703 9865 11/14/2007 9615 9820 11/15/2007 9413 9714 11/16/2007 9371 9694 11/17/2007 9371 9694 11/18/2007 9371 9694 11/19/2007 9011 9511 11/20/2007 8988 9499 11/21/2007 8749 9374 11/22/2007 8749 9374 11/23/2007 8972 9497 11/24/2007 8972 9497 11/25/2007 8972 9497 11/26/2007 8687 9347 11/27/2007 8880 9451 11/28/2007 9408 9733 11/29/2007 9407 9733 11/30/2007 9529 9799 12/1/2007 9529 9799 12/2/2007 9529 9799 12/3/2007 9455 9760 12/4/2007 9385 9726 12/5/2007 9659 9869 12/6/2007 10053 10072 12/7/2007 10071 10084 12/8/2007 10071 10084 12/9/2007 10071 10084 12/10/2007 10232 10165 12/11/2007 9627 9865 12/12/2007 9696 9900 12/13/2007 9692 9899 12/14/2007 9383 9742 12/15/2007 9383 9742 12/16/2007 9383 9742 12/17/2007 9064 9578 12/18/2007 9195 9647 12/19/2007 9180 9641 12/20/2007 9395 9754 12/21/2007 9683 9906 12/22/2007 9683 9906 12/23/2007 9683 9906 12/24/2007 9899 10018 12/25/2007 9899 10018 12/26/2007 9847 9993 12/27/2007 9544 9841 12/28/2007 9529 9836 12/29/2007 9529 9836 12/30/2007 9529 9836 12/31/2007 9417 9780 1/1/2008 9417 9780 1/2/2008 9184 9660 1/3/2008 9053 9592 1/4/2008 8527 9317 1/5/2008 8527 9317 1/6/2008 8527 9317 1/7/2008 8480 9293 1/8/2008 8090 9080 1/9/2008 8166 9124 1/10/2008 8315 9207 1/11/2008 8077 9078 1/12/2008 8077 9078 1/13/2008 8077 9078 1/14/2008 8242 9171 1/15/2008 7850 8954 1/16/2008 7771 8911 1/17/2008 7319 8653 1/18/2008 7265 8623 1/19/2008 7265 8623 1/20/2008 7265 8623 1/21/2008 7265 8623 1/22/2008 7192 8582 1/23/2008 7518 8776 1/24/2008 7693 8881 1/25/2008 7553 8802 1/26/2008 7553 8802 1/27/2008 7553 8802 1/28/2008 7907 9006 1/29/2008 8026 9073 1/30/2008 7855 8977 1/31/2008 8194 9178 2/1/2008 8578 9392 2/2/2008 8578 9392 2/3/2008 8578 9392 2/4/2008 8455 9324 2/5/2008 7973 9057 2/6/2008 7782 8950 2/7/2008 7946 9043 2/8/2008 7967 9060 2/9/2008 7967 9060 2/10/2008 7967 9060 2/11/2008 8058 9112 2/12/2008 8094 9132 2/13/2008 8304 9251 2/14/2008 8042 9104 2/15/2008 8005 9082 2/16/2008 8005 9082 2/17/2008 8005 9082 2/18/2008 8005 9082 2/19/2008 8017 9091 2/20/2008 8237 9217 2/21/2008 8018 9095 2/22/2008 8114 9148 2/23/2008 8114 9148 2/24/2008 8114 9148 2/25/2008 8435 9334 2/26/2008 8603 9425 2/27/2008 8523 9380 2/28/2008 8349 9287 2/29/2008 7844 9007 3/1/2008 7844 9007 3/2/2008 7844 9007 3/3/2008 7870 9023 3/4/2008 7775 8970 3/5/2008 7875 9025 3/6/2008 7444 8778 3/7/2008 7297 8693 3/8/2008 7297 8693 3/9/2008 7297 8693 3/10/2008 6996 8512 3/11/2008 7457 8793 3/12/2008 7382 8752 3/13/2008 7573 8864 3/14/2008 7291 8700 3/15/2008 7291 8700 3/16/2008 7291 8700 3/17/2008 6971 8517 3/18/2008 7536 8860 3/19/2008 7160 8640 3/20/2008 7430 8801 3/21/2008 7430 8801 3/22/2008 7430 8801 3/23/2008 7430 8801 3/24/2008 7786 9003 3/25/2008 7936 9093 3/26/2008 7798 9019 3/27/2008 7622 8913 3/28/2008 7484 8834 3/29/2008 7484 8834 3/30/2008 7484 8834 3/31/2008 7623 8915 4/1/2008 8114 9208 4/2/2008 8194 9248 4/3/2008 8259 9286 4/4/2008 8322 9324 4/5/2008 8322 9324 4/6/2008 8322 9324 4/7/2008 8365 9349 4/8/2008 8359 9343 4/9/2008 8094 9198 4/10/2008 8296 9313 4/11/2008 7999 9146 4/12/2008 7999 9146 4/13/2008 7999 9146 4/14/2008 7972 9128 4/15/2008 8047 9176 4/16/2008 8511 9442 4/17/2008 8446 9407 4/18/2008 8704 9551 4/19/2008 8704 9551 4/20/2008 8704 9551 4/21/2008 8720 9555 4/22/2008 8471 9417 4/23/2008 8534 9451 4/24/2008 8658 9524 4/25/2008 8898 9656 4/26/2008 8898 9656 4/27/2008 8898 9656 4/28/2008 8936 9677 4/29/2008 8826 9613 4/30/2008 8794 9602 5/1/2008 9020 9727 5/2/2008 9043 9740 5/3/2008 9043 9740 5/4/2008 9043 9740 5/5/2008 9026 9731 5/6/2008 9170 9809 5/7/2008 8963 9696 5/8/2008 9093 9770 5/9/2008 9106 9778 5/10/2008 9106 9778 5/11/2008 9106 9778 5/12/2008 9319 9893 5/13/2008 9432 9954 5/14/2008 9473 9977 5/15/2008 9700 10095 5/16/2008 9754 10124 5/17/2008 9754 10124 5/18/2008 9754 10124 5/19/2008 9691 10094 5/20/2008 9669 10078 5/21/2008 9370 9924 5/22/2008 9425 9956 5/23/2008 9208 9837 5/24/2008 9208 9837 5/25/2008 9208 9837 5/26/2008 9208 9837 5/27/2008 9355 9919 5/28/2008 9518 10007 5/29/2008 9578 10041 5/30/2008 9701 10110 5/31/2008 9701 10110 6/1/2008 9701 10110 6/2/2008 9546 10025 6/3/2008 9547 10028 6/4/2008 9607 10055 6/5/2008 10041 10287 6/6/2008 9515 10018 6/7/2008 9515 10018 6/8/2008 9515 10018 6/9/2008 9493 10007 6/10/2008 9355 9937 6/11/2008 9035 9765 6/12/2008 9046 9772 6/13/2008 9333 9929 6/14/2008 9333 9929 6/15/2008 9333 9929 6/16/2008 9483 10010 6/17/2008 9477 10006 6/18/2008 9334 9930 6/19/2008 9418 9976 6/20/2008 9084 9802 6/21/2008 9084 9802 6/22/2008 9084 9802 6/23/2008 9074 9796 6/24/2008 8845 9674 6/25/2008 8968 9741 6/26/2008 8498 9485 6/27/2008 8428 9448 6/28/2008 8428 9448 6/29/2008 8428 9448 6/30/2008 8340 9399 7/1/2008 8364 9412 7/2/2008 7860 9130 7/3/2008 7685 9030 7/4/2008 7685 9030 7/5/2008 7685 9030 7/6/2008 7685 9030 7/7/2008 7565 8959 7/8/2008 7906 9161 7/9/2008 7677 9030 7/10/2008 7758 9078 7/11/2008 7699 9044 7/12/2008 7699 9044 7/13/2008 7699 9044 7/14/2008 7545 8954 7/15/2008 7405 8872 7/16/2008 7764 9087 7/17/2008 7975 9211 7/18/2008 7933 9189 7/19/2008 7933 9189 7/20/2008 7933 9189 7/21/2008 8042 9251 7/22/2008 8247 9371 7/23/2008 8263 9380 7/24/2008 7764 9095 7/25/2008 7827 9135 7/26/2008 7827 9135 7/27/2008 7827 9135 7/28/2008 7642 9026 7/29/2008 7968 9220 7/30/2008 8203 9357 7/31/2008 7966 9224 8/1/2008 7930 9202 8/2/2008 7930 9202 8/3/2008 7930 9202 8/4/2008 7635 9032 8/5/2008 7956 9222 8/6/2008 8072 9290 8/7/2008 7831 9151 8/8/2008 8173 9353 8/9/2008 8173 9353 8/10/2008 8173 9353 8/11/2008 8345 9440 8/12/2008 8183 9348 8/13/2008 8238 9379 8/14/2008 8365 9454 8/15/2008 8353 9449 8/16/2008 8353 9449 8/17/2008 8353 9449 8/18/2008 8138 9326 8/19/2008 7979 9234 8/20/2008 8043 9272 8/21/2008 8060 9285 8/22/2008 8211 9372 8/23/2008 8211 9372 8/24/2008 8211 9372 8/25/2008 7879 9182 8/26/2008 7953 9225 8/27/2008 8148 9343 8/28/2008 8407 9490 8/29/2008 8215 9382 8/30/2008 8215 9382 8/31/2008 8215 9382 9/1/2008 8215 9382 9/2/2008 8058 9290 9/3/2008 7949 9229 9/4/2008 7560 9006 9/5/2008 7614 9040 9/6/2008 7614 9040 9/7/2008 7614 9040 9/8/2008 7817 9159 9/9/2008 7220 8806 9/10/2008 7416 8927 9/11/2008 7497 8975 9/12/2008 7665 9077 9/13/2008 7665 9077 9/14/2008 7665 9077 9/15/2008 6993 8677 9/16/2008 7290 8863 9/17/2008 6654 8476 9/18/2008 7306 8892 9/19/2008 7913 9269 9/20/2008 7913 9269 9/21/2008 7913 9269 9/22/2008 7187 8838 9/23/2008 7026 8736 9/24/2008 6870 8638 9/25/2008 7021 8735 9/26/2008 6923 8675 9/27/2008 6923 8675 9/28/2008 6923 8675 9/29/2008 5912 8042 9/30/2008 6390 8377 10/1/2008 6246 8281 10/2/2008 5549 7821 10/3/2008 5277 7626 10/4/2008 5277 7626 10/5/2008 5277 7626 10/6/2008 4806 7290 10/7/2008 4282 6896 10/8/2008 4180 6814 10/9/2008 3577 6323 10/10/2008 3590 6337 10/11/2008 3590 6337 10/12/2008 3590 6337 10/13/2008 4341 7000 10/14/2008 4145 6843 10/15/2008 3349 6181 10/16/2008 3609 6422 10/17/2008 3558 6398 10/18/2008 3558 6398 10/19/2008 3558 6398 10/20/2008 3900 6680 10/21/2008 3678 6493 10/22/2008 3258 6112 10/23/2008 3081 5953 10/24/2008 2897 5782 10/25/2008 2897 5782 10/26/2008 2897 5782 10/27/2008 2636 5533 10/28/2008 3116 6010 10/29/2008 3201 6119 10/30/2008 3488 6374 10/31/2008 3688 6556
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (11/05/2007) --------------- RYDEX 2X S&P MIDCAP 400 ETF...................................... -63.12% S&P MIDCAP 400 TOTAL RETURN INDEX................................ -34.44%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 10 RYDEX 2x S&P MIDCAP 400 ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ NEW YORK COMMUNITY BANCORP, INC. 0.60% STERICYCLE, INC. 0.55% MCAFEE, INC. 0.55% CEPHALON, INC. 0.55% EVEREST RE GROUP, LTD. 0.52% EQUITABLE RESOURCES, INC. 0.51% DENTSPLY INTERNATIONAL, INC. 0.51% HEALTH CARE REIT, INC. 0.50% FMC TECHNOLOGIES, INC. 0.50% FLIR SYSTEMS, INC. 0.50% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Financials 19.53 Industrials 14.43 Consumer Discretionary 13.65 Information Technology 13.39 Health Care 12.27 Utilities 8.53 Energy 7.01 Materials 6.57 Consumer Staples 4.15 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. ANNUAL REPORT 11 RYDEX INVERSE 2x S&P MIDCAP 400 ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 11/5/2007, Rydex Inverse 2x S&P MidCap 400 ETF returned 78.90%. Over the same time period, its benchmark -- the S&P MidCap 400(TM) -- returned -34.44%. For the period since its inception, Rydex Inverse 2x S&P MidCap 400 ETF achieved a daily correlation of 100% to its benchmark of -200% of the daily price movement of the S&P MidCap 400 Index. Allocations to the hard-hit industrial and technology sectors were the largest contributors to the ETF's negative performance. Helped by rising oil and commodity prices, companies in the energy, materials and industrials sectors buoyed mid-cap stocks through May 2008. However, beginning in June, as recession fears increased on the tail of a growing global financial crisis, expectations for global industrial demand began to wane and these companies began to suffer. By July, oil and commodity prices began to slide, Inter-bank lending ground to a halt and the Volatility Index(R) (VIX) jumped to all-time highs in September and October as the economic crisis culminated in the need for government intervention. On September 19, 2008, the Securities and Exchange Commission (SEC) took emergency action to ban all short selling of financial securities. This had an immense ripple effect not only on the stock market itself, but also in the futures and other derivative markets. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: NOVEMBER 5, 2007 - OCTOBER 31, 2008 (Performance Graph)
RYDEX INVERSE 2X S&P S&P MIDCAP MIDCAP 400 400 TOTAL ETF RETURN INDEX ------------- ------------ 11/5/2007 10000 10000 11/6/2007 9744 10125 11/7/2007 10191 9893 11/8/2007 10123 9931 11/9/2007 10409 9799 11/10/2007 10409 9799 11/11/2007 10409 9799 11/12/2007 10727 9651 11/13/2007 10273 9865 11/14/2007 10351 9820 11/15/2007 10563 9714 11/16/2007 10632 9694 11/17/2007 10632 9694 11/18/2007 10632 9694 11/19/2007 11040 9511 11/20/2007 11067 9499 11/21/2007 11364 9374 11/22/2007 11364 9374 11/23/2007 11087 9497 11/24/2007 11087 9497 11/25/2007 11087 9497 11/26/2007 11432 9347 11/27/2007 11177 9451 11/28/2007 10512 9733 11/29/2007 10524 9733 11/30/2007 10396 9799 12/1/2007 10396 9799 12/2/2007 10396 9799 12/3/2007 10475 9760 12/4/2007 10547 9726 12/5/2007 10249 9869 12/6/2007 9835 10072 12/7/2007 9821 10084 12/8/2007 9821 10084 12/9/2007 9821 10084 12/10/2007 9659 10165 12/11/2007 10247 9865 12/12/2007 10161 9900 12/13/2007 10173 9899 12/14/2007 10508 9742 12/15/2007 10508 9742 12/16/2007 10508 9742 12/17/2007 10864 9578 12/18/2007 10705 9647 12/19/2007 10731 9641 12/20/2007 10484 9754 12/21/2007 10169 9906 12/22/2007 10169 9906 12/23/2007 10169 9906 12/24/2007 9936 10018 12/25/2007 9936 10018 12/26/2007 9992 9993 12/27/2007 10305 9841 12/28/2007 10325 9836 12/29/2007 10325 9836 12/30/2007 10325 9836 12/31/2007 10468 9780 1/1/2008 10468 9780 1/2/2008 10714 9660 1/3/2008 10873 9592 1/4/2008 11507 9317 1/5/2008 11507 9317 1/6/2008 11507 9317 1/7/2008 11565 9293 1/8/2008 12100 9080 1/9/2008 11970 9124 1/10/2008 11786 9207 1/11/2008 12109 9078 1/12/2008 12109 9078 1/13/2008 12109 9078 1/14/2008 11854 9171 1/15/2008 12428 8954 1/16/2008 12574 8911 1/17/2008 13287 8653 1/18/2008 13388 8623 1/19/2008 13388 8623 1/20/2008 13388 8623 1/21/2008 13388 8623 1/22/2008 13539 8582 1/23/2008 12929 8776 1/24/2008 12617 8881 1/25/2008 12851 8802 1/26/2008 12851 8802 1/27/2008 12851 8802 1/28/2008 12262 9006 1/29/2008 12082 9073 1/30/2008 12342 8977 1/31/2008 11795 9178 2/1/2008 11250 9392 2/2/2008 11250 9392 2/3/2008 11250 9392 2/4/2008 11416 9324 2/5/2008 12073 9057 2/6/2008 12362 8950 2/7/2008 12105 9043 2/8/2008 12071 9060 2/9/2008 12071 9060 2/10/2008 12071 9060 2/11/2008 11936 9112 2/12/2008 11885 9132 2/13/2008 11574 9251 2/14/2008 11943 9104 2/15/2008 12011 9082 2/16/2008 12011 9082 2/17/2008 12011 9082 2/18/2008 12011 9082 2/19/2008 11992 9091 2/20/2008 11663 9217 2/21/2008 11974 9095 2/22/2008 11839 9148 2/23/2008 11839 9148 2/24/2008 11839 9148 2/25/2008 11364 9334 2/26/2008 11141 9425 2/27/2008 11248 9380 2/28/2008 11478 9287 2/29/2008 12176 9007 3/1/2008 12176 9007 3/2/2008 12176 9007 3/3/2008 12138 9023 3/4/2008 12283 8970 3/5/2008 12132 9025 3/6/2008 12803 8778 3/7/2008 13059 8693 3/8/2008 13059 8693 3/9/2008 13059 8693 3/10/2008 13603 8512 3/11/2008 12707 8793 3/12/2008 12835 8752 3/13/2008 12506 8864 3/14/2008 12976 8700 3/15/2008 12976 8700 3/16/2008 12976 8700 3/17/2008 13524 8517 3/18/2008 12461 8860 3/19/2008 13083 8640 3/20/2008 12611 8801 3/21/2008 12611 8801 3/22/2008 12611 8801 3/23/2008 12611 8801 3/24/2008 12036 9003 3/25/2008 11798 9093 3/26/2008 11993 9019 3/27/2008 12273 8913 3/28/2008 12495 8834 3/29/2008 12495 8834 3/30/2008 12495 8834 3/31/2008 12272 8915 4/1/2008 11469 9208 4/2/2008 11366 9248 4/3/2008 11276 9286 4/4/2008 11191 9324 4/5/2008 11191 9324 4/6/2008 11191 9324 4/7/2008 11132 9349 4/8/2008 11148 9343 4/9/2008 11494 9198 4/10/2008 11210 9313 4/11/2008 11619 9146 4/12/2008 11619 9146 4/13/2008 11619 9146 4/14/2008 11664 9128 4/15/2008 11546 9176 4/16/2008 10881 9442 4/17/2008 10963 9407 4/18/2008 10634 9551 4/19/2008 10634 9551 4/20/2008 10634 9551 4/21/2008 10623 9555 4/22/2008 10930 9417 4/23/2008 10855 9451 4/24/2008 10690 9524 4/25/2008 10398 9656 4/26/2008 10398 9656 4/27/2008 10398 9656 4/28/2008 10354 9677 4/29/2008 10492 9613 4/30/2008 10520 9602 5/1/2008 10246 9727 5/2/2008 10225 9740 5/3/2008 10225 9740 5/4/2008 10225 9740 5/5/2008 10245 9731 5/6/2008 10081 9809 5/7/2008 10317 9696 5/8/2008 10161 9770 5/9/2008 10149 9778 5/10/2008 10149 9778 5/11/2008 10149 9778 5/12/2008 9913 9893 5/13/2008 9790 9954 5/14/2008 9747 9977 5/15/2008 9517 10095 5/16/2008 9467 10124 5/17/2008 9467 10124 5/18/2008 9467 10124 5/19/2008 9526 10094 5/20/2008 9556 10078 5/21/2008 9849 9924 5/22/2008 9786 9956 5/23/2008 10027 9837 5/24/2008 10027 9837 5/25/2008 10027 9837 5/26/2008 10027 9837 5/27/2008 9862 9919 5/28/2008 9691 10007 5/29/2008 9626 10041 5/30/2008 9499 10110 5/31/2008 9499 10110 6/1/2008 9499 10110 6/2/2008 9661 10025 6/3/2008 9657 10028 6/4/2008 9606 10055 6/5/2008 9165 10287 6/6/2008 9652 10018 6/7/2008 9652 10018 6/8/2008 9652 10018 6/9/2008 9676 10007 6/10/2008 9815 9937 6/11/2008 10155 9765 6/12/2008 10144 9772 6/13/2008 9822 9929 6/14/2008 9822 9929 6/15/2008 9822 9929 6/16/2008 9664 10010 6/17/2008 9670 10006 6/18/2008 9819 9930 6/19/2008 9730 9976 6/20/2008 10077 9802 6/21/2008 10077 9802 6/22/2008 10077 9802 6/23/2008 10089 9796 6/24/2008 10342 9674 6/25/2008 10199 9741 6/26/2008 10738 9485 6/27/2008 10831 9448 6/28/2008 10831 9448 6/29/2008 10831 9448 6/30/2008 10944 9399 7/1/2008 10913 9412 7/2/2008 11573 9130 7/3/2008 11840 9030 7/4/2008 11840 9030 7/5/2008 11840 9030 7/6/2008 11840 9030 7/7/2008 12020 8959 7/8/2008 11481 9161 7/9/2008 11812 9030 7/10/2008 11684 9078 7/11/2008 11777 9044 7/12/2008 11777 9044 7/13/2008 11777 9044 7/14/2008 12015 8954 7/15/2008 12235 8872 7/16/2008 11644 9087 7/17/2008 11328 9211 7/18/2008 11390 9189 7/19/2008 11390 9189 7/20/2008 11390 9189 7/21/2008 11235 9251 7/22/2008 10948 9371 7/23/2008 10929 9380 7/24/2008 11585 9095 7/25/2008 11496 9135 7/26/2008 11496 9135 7/27/2008 11496 9135 7/28/2008 11765 9026 7/29/2008 11269 9220 7/30/2008 10939 9357 7/31/2008 11255 9224 8/1/2008 11306 9202 8/2/2008 11306 9202 8/3/2008 11306 9202 8/4/2008 11728 9032 8/5/2008 11237 9222 8/6/2008 11071 9290 8/7/2008 11404 9151 8/8/2008 10908 9353 8/9/2008 10908 9353 8/10/2008 10908 9353 8/11/2008 10702 9440 8/12/2008 10914 9348 8/13/2008 10843 9379 8/14/2008 10674 9454 8/15/2008 10690 9449 8/16/2008 10690 9449 8/17/2008 10690 9449 8/18/2008 10966 9326 8/19/2008 11181 9234 8/20/2008 11091 9272 8/21/2008 11068 9285 8/22/2008 10863 9372 8/23/2008 10863 9372 8/24/2008 10863 9372 8/25/2008 11305 9182 8/26/2008 11202 9225 8/27/2008 10929 9343 8/28/2008 10578 9490 8/29/2008 10824 9382 8/30/2008 10824 9382 8/31/2008 10824 9382 9/1/2008 10824 9382 9/2/2008 11029 9290 9/3/2008 11177 9229 9/4/2008 11730 9006 9/5/2008 11651 9040 9/6/2008 11651 9040 9/7/2008 11651 9040 9/8/2008 11335 9159 9/9/2008 12224 8806 9/10/2008 11900 8927 9/11/2008 11770 8975 9/12/2008 11508 9077 9/13/2008 11508 9077 9/14/2008 11508 9077 9/15/2008 12508 8677 9/16/2008 12007 8863 9/17/2008 13075 8476 9/18/2008 11804 8892 9/19/2008 10821 9269 9/20/2008 10821 9269 9/21/2008 10821 9269 9/22/2008 11830 8838 9/23/2008 12101 8736 9/24/2008 12369 8638 9/25/2008 12099 8735 9/26/2008 12270 8675 9/27/2008 12270 8675 9/28/2008 12270 8675 9/29/2008 14058 8042 9/30/2008 12881 8377 10/1/2008 13185 8281 10/2/2008 14685 7821 10/3/2008 15398 7626 10/4/2008 15398 7626 10/5/2008 15398 7626 10/6/2008 16771 7290 10/7/2008 18620 6896 10/8/2008 19105 6814 10/9/2008 21763 6323 10/10/2008 21621 6337 10/11/2008 21621 6337 10/12/2008 21621 6337 10/13/2008 17004 7000 10/14/2008 18001 6843 10/15/2008 21348 6181 10/16/2008 19718 6422 10/17/2008 20221 6398 10/18/2008 20221 6398 10/19/2008 20221 6398 10/20/2008 18132 6680 10/21/2008 19242 6493 10/22/2008 21383 6112 10/23/2008 22462 5953 10/24/2008 23836 5782 10/25/2008 23836 5782 10/26/2008 23836 5782 10/27/2008 26022 5533 10/28/2008 21205 6010 10/29/2008 20889 6119 10/30/2008 18988 6374 10/31/2008 17890 6556
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (11/05/2007) --------------- RYDEX INVERSE 2X S&P MIDCAP 400 ETF.............................. 78.90% S&P MIDCAP 400 TOTAL RETURN INDEX................................ -34.44%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 12 RYDEX 2x RUSSELL 2000 ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 11/05/2007, Rydex 2x Russell 2000 ETF returned -59.79%. Over the same time period, its benchmark, the Russell 2000(R) Index, returned -31.04%. For the period since its inception, Rydex 2x Russell 2000 ETF achieved a daily correlation of 100% to its benchmark of 200% of the daily price movement of the Russell 2000 Index. Technology and consumer discretionary sector stocks contributed the most to the Russell 2000 Index's decline. Of course, signs of continued weakness in the economy stemming from the escalating financial crisis resulted in hard hits on stocks in these sectors. In large part, this was due to earnings expectations as both consumers and businesses alike curtailed their spending on software and retail goods. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: NOVEMBER 5, 2007 - OCTOBER 31, 2008 (Performance Graph)
RYDEX 2X RUSSELL 2000 RUSSELL 2000 TOTAL RETURN ETF INDEX ------------ ------------ 11/5/2007 10000 10000 11/6/2007 10279 10144 11/7/2007 9617 9818 11/8/2007 9749 9881 11/9/2007 9536 9773 11/10/2007 9536 9773 11/11/2007 9536 9773 11/12/2007 9401 9706 11/13/2007 9945 9986 11/14/2007 9776 9903 11/15/2007 9507 9765 11/16/2007 9452 9739 11/17/2007 9452 9739 11/18/2007 9452 9739 11/19/2007 8979 9497 11/20/2007 8957 9485 11/21/2007 8741 9372 11/22/2007 8741 9372 11/23/2007 9088 9558 11/24/2007 9088 9558 11/25/2007 9088 9558 11/26/2007 8600 9306 11/27/2007 8796 9410 11/28/2007 9431 9750 11/29/2007 9332 9701 11/30/2007 9369 9722 12/1/2007 9369 9722 12/2/2007 9369 9722 12/3/2007 9179 9624 12/4/2007 8985 9524 12/5/2007 9312 9697 12/6/2007 9827 9967 12/7/2007 9791 9949 12/8/2007 9791 9949 12/9/2007 9791 9949 12/10/2007 9931 10021 12/11/2007 9304 9705 12/12/2007 9444 9777 12/13/2007 9387 9749 12/14/2007 9009 9553 12/15/2007 9009 9553 12/16/2007 9009 9553 12/17/2007 8651 9365 12/18/2007 9003 9555 12/19/2007 9051 9582 12/20/2007 9324 9727 12/21/2007 9760 9956 12/22/2007 9760 9956 12/23/2007 9760 9956 12/24/2007 9975 10068 12/25/2007 9975 10068 12/26/2007 10038 10102 12/27/2007 9455 9810 12/28/2007 9413 9789 12/29/2007 9413 9789 12/30/2007 9413 9789 12/31/2007 9270 9716 1/1/2008 9270 9716 1/2/2008 8966 9559 1/3/2008 8761 9451 1/4/2008 8209 9154 1/5/2008 8209 9154 1/6/2008 8209 9154 1/7/2008 8260 9184 1/8/2008 7821 8942 1/9/2008 7984 9034 1/10/2008 8162 9137 1/11/2008 7809 8940 1/12/2008 7809 8940 1/13/2008 7809 8940 1/14/2008 7980 9040 1/15/2008 7643 8849 1/16/2008 7691 8880 1/17/2008 7270 8635 1/18/2008 7113 8542 1/19/2008 7113 8542 1/20/2008 7113 8542 1/21/2008 7113 8542 1/22/2008 7074 8521 1/23/2008 7532 8799 1/24/2008 7516 8790 1/25/2008 7425 8738 1/26/2008 7425 8738 1/27/2008 7425 8738 1/28/2008 7724 8913 1/29/2008 7786 8950 1/30/2008 7570 8827 1/31/2008 7956 9054 2/1/2008 8336 9272 2/2/2008 8336 9272 2/3/2008 8336 9272 2/4/2008 8174 9183 2/5/2008 7682 8906 2/6/2008 7482 8791 2/7/2008 7707 8922 2/8/2008 7619 8873 2/9/2008 7619 8873 2/10/2008 7619 8873 2/11/2008 7637 8884 2/12/2008 7761 8957 2/13/2008 8127 9168 2/14/2008 7753 8957 2/15/2008 7674 8909 2/16/2008 7674 8909 2/17/2008 7674 8909 2/18/2008 7674 8909 2/19/2008 7686 8919 2/20/2008 7853 9017 2/21/2008 7548 8843 2/22/2008 7534 8833 2/23/2008 7534 8833 2/24/2008 7534 8833 2/25/2008 7855 9024 2/26/2008 8004 9111 2/27/2008 7990 9101 2/28/2008 7750 8966 2/29/2008 7322 8718 3/1/2008 7322 8718 3/2/2008 7322 8718 3/3/2008 7280 8693 3/4/2008 7206 8653 3/5/2008 7272 8688 3/6/2008 6820 8423 3/7/2008 6768 8389 3/8/2008 6768 8389 3/9/2008 6768 8389 3/10/2008 6436 8184 3/11/2008 7032 8564 3/12/2008 6901 8484 3/13/2008 7162 8642 3/14/2008 6800 8429 3/15/2008 6800 8429 3/16/2008 6800 8429 3/17/2008 6545 8271 3/18/2008 7182 8672 3/19/2008 6805 8446 3/20/2008 7160 8666 3/21/2008 7160 8666 3/22/2008 7160 8666 3/23/2008 7160 8666 3/24/2008 7581 8919 3/25/2008 7666 8970 3/26/2008 7600 8930 3/27/2008 7395 8810 3/28/2008 7196 8694 3/29/2008 7196 8694 3/30/2008 7196 8694 3/31/2008 7295 8755 4/1/2008 7773 9043 4/2/2008 7813 9065 4/3/2008 7844 9082 4/4/2008 7850 9084 4/5/2008 7850 9084 4/6/2008 7850 9084 4/7/2008 7816 9071 4/8/2008 7807 9062 4/9/2008 7512 8890 4/10/2008 7701 9005 4/11/2008 7289 8761 4/12/2008 7289 8761 4/13/2008 7289 8761 4/14/2008 7244 8734 4/15/2008 7367 8811 4/16/2008 7816 9083 4/17/2008 7701 9014 4/18/2008 7974 9181 4/19/2008 7974 9181 4/20/2008 7974 9181 4/21/2008 7927 9142 4/22/2008 7611 8960 4/23/2008 7702 9016 4/24/2008 7891 9130 4/25/2008 7993 9191 4/26/2008 7993 9191 4/27/2008 7993 9191 4/28/2008 8079 9237 4/29/2008 7942 9156 4/30/2008 7871 9121 5/1/2008 8169 9295 5/2/2008 8088 9244 5/3/2008 8088 9244 5/4/2008 8088 9244 5/5/2008 8052 9226 5/6/2008 8163 9296 5/7/2008 7876 9123 5/8/2008 7942 9166 5/9/2008 7961 9173 5/10/2008 7961 9173 5/11/2008 7961 9173 5/12/2008 8242 9341 5/13/2008 8324 9388 5/14/2008 8308 9379 5/15/2008 8473 9473 5/16/2008 8419 9445 5/17/2008 8419 9445 5/18/2008 8419 9445 5/19/2008 8350 9411 5/20/2008 8297 9375 5/21/2008 8102 9267 5/22/2008 8233 9342 5/23/2008 8036 9229 5/24/2008 8036 9229 5/25/2008 8036 9229 5/26/2008 8036 9229 5/27/2008 8259 9360 5/28/2008 8352 9414 5/29/2008 8512 9505 5/30/2008 8571 9540 5/31/2008 8571 9540 6/1/2008 8571 9540 6/2/2008 8410 9448 6/3/2008 8358 9422 6/4/2008 8470 9483 6/5/2008 8914 9733 6/6/2008 8376 9441 6/7/2008 8376 9441 6/8/2008 8376 9441 6/9/2008 8276 9376 6/10/2008 8201 9343 6/11/2008 7876 9157 6/12/2008 7919 9183 6/13/2008 8222 9359 6/14/2008 8222 9359 6/15/2008 8222 9359 6/16/2008 8378 9450 6/17/2008 8287 9398 6/18/2008 8159 9323 6/19/2008 8316 9414 6/20/2008 8037 9260 6/21/2008 8037 9260 6/22/2008 8037 9260 6/23/2008 7902 9185 6/24/2008 7643 9033 6/25/2008 7827 9140 6/26/2008 7444 8917 6/27/2008 7433 8914 6/28/2008 7433 8914 6/29/2008 7433 8914 6/30/2008 7255 8806 7/1/2008 7291 8831 7/2/2008 6878 8585 7/3/2008 6750 8502 7/4/2008 6750 8502 7/5/2008 6750 8502 7/6/2008 6750 8502 7/7/2008 6596 8406 7/8/2008 7096 8719 7/9/2008 6694 8477 7/10/2008 6835 8562 7/11/2008 6925 8621 7/12/2008 6925 8621 7/13/2008 6925 8621 7/14/2008 6710 8488 7/15/2008 6663 8460 7/16/2008 7159 8772 7/17/2008 7369 8899 7/18/2008 7289 8854 7/19/2008 7289 8854 7/20/2008 7289 8854 7/21/2008 7389 8912 7/22/2008 7794 9157 7/23/2008 7846 9188 7/24/2008 7482 8973 7/25/2008 7648 9075 7/26/2008 7648 9075 7/27/2008 7648 9075 7/28/2008 7341 8893 7/29/2008 7732 9130 7/30/2008 7822 9186 7/31/2008 7721 9132 8/1/2008 7765 9153 8/2/2008 7765 9153 8/3/2008 7765 9153 8/4/2008 7502 9000 8/5/2008 7860 9216 8/6/2008 7968 9278 8/7/2008 7701 9119 8/8/2008 8138 9386 8/9/2008 8138 9386 8/10/2008 8138 9386 8/11/2008 8516 9601 8/12/2008 8376 9523 8/13/2008 8442 9560 8/14/2008 8590 9646 8/15/2008 8568 9633 8/16/2008 8568 9633 8/17/2008 8568 9633 8/18/2008 8301 9488 8/19/2008 8041 9337 8/20/2008 8080 9357 8/21/2008 7932 9276 8/22/2008 8208 9434 8/23/2008 8208 9434 8/24/2008 8208 9434 8/25/2008 7825 9216 8/26/2008 7886 9254 8/27/2008 8093 9376 8/28/2008 8424 9568 8/29/2008 8235 9462 8/30/2008 8235 9462 8/31/2008 8235 9462 9/1/2008 8235 9462 9/2/2008 8220 9449 9/3/2008 8299 9493 9/4/2008 7771 9196 9/5/2008 7769 9199 9/6/2008 7769 9199 9/7/2008 7769 9199 9/8/2008 8081 9379 9/9/2008 7513 9052 9/10/2008 7717 9178 9/11/2008 7772 9204 9/12/2008 7794 9221 9/13/2008 7794 9221 9/14/2008 7794 9221 9/15/2008 7140 8830 9/16/2008 7573 9099 9/17/2008 6826 8660 9/18/2008 7776 9266 9/19/2008 8471 9651 9/20/2008 8471 9651 9/21/2008 8471 9651 9/22/2008 7746 9225 9/23/2008 7527 9081 9/24/2008 7316 8935 9/25/2008 7460 9038 9/26/2008 7466 9030 9/27/2008 7466 9030 9/28/2008 7466 9030 9/29/2008 6409 8428 9/30/2008 6951 8708 10/1/2008 6728 8606 10/2/2008 6022 8172 10/3/2008 5727 7938 10/4/2008 5727 7938 10/5/2008 5727 7938 10/6/2008 5279 7637 10/7/2008 4597 7163 10/8/2008 4369 7005 10/9/2008 3635 6399 10/10/2008 3998 6698 10/11/2008 3998 6698 10/12/2008 3998 6698 10/13/2008 4713 7319 10/14/2008 4441 7111 10/15/2008 3616 6438 10/16/2008 4117 6880 10/17/2008 3913 6752 10/18/2008 3913 6752 10/19/2008 3913 6752 10/20/2008 4246 7014 10/21/2008 4008 6806 10/22/2008 3590 6437 10/23/2008 3380 6282 10/24/2008 3129 6041 10/25/2008 3129 6041 10/26/2008 3129 6041 10/27/2008 2824 5750 10/28/2008 3278 6188 10/29/2008 3344 6297 10/30/2008 3691 6596 10/31/2008 4021 6896
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (11/05/2007) --------------- RYDEX 2X RUSSELL 2000 ETF........................................ -59.79% RUSSELL 2000 TOTAL RETURN INDEX.................................. -31.04%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 13 RYDEX 2x RUSSELL 2000 ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ CORVEL CORP 0.77% RALCORP HOLDINGS, INC 0.37% ALEXION PHARMACEUTICALS, INC 0.31% MYRIAD GENETICS, INC 0.28% WASTE CONNECTIONS, INC 0.26% PIEDMONT NATURAL GAS CO., INC 0.24% REALTY INCOME CORP 0.23% FLOWERS FOODS, INC 0.22% COMSTOCK RESOURCES, INC 0.22% SENIOR HOUSING PROPERTIES TRUST 0.22% ------------------------------------------------------------------------------------
SECTOR ALLOCATIONS* (PIE CHART) Industrials 26.78 Financials 19.60 Information Technology 14.23 Health Care 13.49 Consumer Discretionary 10.03 Energy 4.68 Utilities 3.34 Consumer Staples 3.53 Materials 3.38 Telecommunication Services 0.94
* 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. ANNUAL REPORT 14 RYDEX INVERSE 2x RUSSELL 2000 ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 11/05/2007, Rydex Inverse 2x Russell 2000 ETF returned 48.79%. Over the same time period, its benchmark the Russell 2000 returned -31.04%. For the period since its inception, Rydex Inverse 2x Russell 2000 ETF achieved a daily correlation of 100% to its benchmark of -200% of the daily price movement of the Russell 2000 Index. Technology and consumer discretionary sectors were not immune to the global economic crisis and contributed the most to the Russell 2000 Index's decline for the year. Of course, signs of continued weakness in the global economy saw stocks in these sectors get hit hard as consumers and businesses alike reigned in their spending on software and services. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: NOVEMBER 5, 2007 - OCTOBER 31, 2008 (Performance Graph)
RYDEX INVERSE RUSSELL 2000 2X RUSSELL TOTAL RETURN 2000 ETF INDEX ------------- ------------ 11/5/2007 10000 10000 11/6/2007 9709 10144 11/7/2007 10345 9818 11/8/2007 10209 9881 11/9/2007 10449 9773 11/10/2007 10449 9773 11/11/2007 10449 9773 11/12/2007 10601 9706 11/13/2007 9999 9986 11/14/2007 10163 9903 11/15/2007 10443 9765 11/16/2007 10513 9739 11/17/2007 10513 9739 11/18/2007 10513 9739 11/19/2007 11041 9497 11/20/2007 11071 9485 11/21/2007 11349 9372 11/22/2007 11349 9372 11/23/2007 10899 9558 11/24/2007 10899 9558 11/25/2007 10899 9558 11/26/2007 11488 9306 11/27/2007 11217 9410 11/28/2007 10408 9750 11/29/2007 10521 9701 11/30/2007 10488 9722 12/1/2007 10488 9722 12/2/2007 10488 9722 12/3/2007 10705 9624 12/4/2007 10931 9524 12/5/2007 10533 9697 12/6/2007 9951 9967 12/7/2007 9992 9949 12/8/2007 9992 9949 12/9/2007 9992 9949 12/10/2007 9845 10021 12/11/2007 10483 9705 12/12/2007 10324 9777 12/13/2007 10393 9749 12/14/2007 10815 9553 12/15/2007 10815 9553 12/16/2007 10815 9553 12/17/2007 11240 9365 12/18/2007 10777 9555 12/19/2007 10732 9582 12/20/2007 10408 9727 12/21/2007 9928 9956 12/22/2007 9928 9956 12/23/2007 9928 9956 12/24/2007 9708 10068 12/25/2007 9708 10068 12/26/2007 9652 10102 12/27/2007 10209 9810 12/28/2007 10264 9789 12/29/2007 10264 9789 12/30/2007 10264 9789 12/31/2007 10414 9716 1/1/2008 10414 9716 1/2/2008 10757 9559 1/3/2008 11013 9451 1/4/2008 11702 9154 1/5/2008 11702 9154 1/6/2008 11702 9154 1/7/2008 11628 9184 1/8/2008 12258 8942 1/9/2008 11984 9034 1/10/2008 11727 9137 1/11/2008 12235 8940 1/12/2008 12235 8940 1/13/2008 12235 8940 1/14/2008 11971 9040 1/15/2008 12472 8849 1/16/2008 12413 8880 1/17/2008 13080 8635 1/18/2008 13356 8542 1/19/2008 13356 8542 1/20/2008 13356 8542 1/21/2008 13356 8542 1/22/2008 13450 8521 1/23/2008 12582 8799 1/24/2008 12610 8790 1/25/2008 12771 8738 1/26/2008 12771 8738 1/27/2008 12771 8738 1/28/2008 12255 8913 1/29/2008 12155 8950 1/30/2008 12500 8827 1/31/2008 11864 9054 2/1/2008 11292 9272 2/2/2008 11292 9272 2/3/2008 11292 9272 2/4/2008 11512 9183 2/5/2008 12199 8906 2/6/2008 12528 8791 2/7/2008 12148 8922 2/8/2008 12298 8873 2/9/2008 12298 8873 2/10/2008 12298 8873 2/11/2008 12271 8884 2/12/2008 12071 8957 2/13/2008 11506 9168 2/14/2008 12034 8957 2/15/2008 12155 8909 2/16/2008 12155 8909 2/17/2008 12155 8909 2/18/2008 12155 8909 2/19/2008 12141 8919 2/20/2008 11877 9017 2/21/2008 12347 8843 2/22/2008 12373 8833 2/23/2008 12373 8833 2/24/2008 12373 8833 2/25/2008 11849 9024 2/26/2008 11624 9111 2/27/2008 11648 9101 2/28/2008 12002 8966 2/29/2008 12666 8718 3/1/2008 12666 8718 3/2/2008 12666 8718 3/3/2008 12743 8693 3/4/2008 12874 8653 3/5/2008 12760 8688 3/6/2008 13556 8423 3/7/2008 13664 8389 3/8/2008 13664 8389 3/9/2008 13664 8389 3/10/2008 14327 8184 3/11/2008 13007 8564 3/12/2008 13262 8484 3/13/2008 12764 8642 3/14/2008 13410 8429 3/15/2008 13410 8429 3/16/2008 13410 8429 3/17/2008 13909 8271 3/18/2008 12573 8672 3/19/2008 13234 8446 3/20/2008 12558 8666 3/21/2008 12558 8666 3/22/2008 12558 8666 3/23/2008 12558 8666 3/24/2008 11826 8919 3/25/2008 11694 8970 3/26/2008 11799 8930 3/27/2008 12116 8810 3/28/2008 12441 8694 3/29/2008 12441 8694 3/30/2008 12441 8694 3/31/2008 12270 8755 4/1/2008 11467 9043 4/2/2008 11416 9065 4/3/2008 11375 9082 4/4/2008 11375 9084 4/5/2008 11375 9084 4/6/2008 11375 9084 4/7/2008 11410 9071 4/8/2008 11436 9062 4/9/2008 11871 8890 4/10/2008 11566 9005 4/11/2008 12200 8761 4/12/2008 12200 8761 4/13/2008 12200 8761 4/14/2008 12273 8734 4/15/2008 12063 8811 4/16/2008 11330 9083 4/17/2008 11499 9014 4/18/2008 11088 9181 4/19/2008 11088 9181 4/20/2008 11088 9181 4/21/2008 11168 9142 4/22/2008 11616 8960 4/23/2008 11475 9016 4/24/2008 11191 9130 4/25/2008 11049 9191 4/26/2008 11049 9191 4/27/2008 11049 9191 4/28/2008 10934 9237 4/29/2008 11125 9156 4/30/2008 11217 9121 5/1/2008 10796 9295 5/2/2008 10913 9244 5/3/2008 10913 9244 5/4/2008 10913 9244 5/5/2008 10960 9226 5/6/2008 10803 9296 5/7/2008 11192 9123 5/8/2008 11094 9166 5/9/2008 11080 9173 5/10/2008 11080 9173 5/11/2008 11080 9173 5/12/2008 10682 9341 5/13/2008 10576 9388 5/14/2008 10596 9379 5/15/2008 10386 9473 5/16/2008 10452 9445 5/17/2008 10452 9445 5/18/2008 10452 9445 5/19/2008 10531 9411 5/20/2008 10604 9375 5/21/2008 10852 9267 5/22/2008 10678 9342 5/23/2008 10941 9229 5/24/2008 10941 9229 5/25/2008 10941 9229 5/26/2008 10941 9229 5/27/2008 10636 9360 5/28/2008 10516 9414 5/29/2008 10316 9505 5/30/2008 10249 9540 5/31/2008 10249 9540 6/1/2008 10249 9540 6/2/2008 10440 9448 6/3/2008 10502 9422 6/4/2008 10367 9483 6/5/2008 9819 9733 6/6/2008 10412 9441 6/7/2008 10412 9441 6/8/2008 10412 9441 6/9/2008 10551 9376 6/10/2008 10635 9343 6/11/2008 11055 9157 6/12/2008 10998 9183 6/13/2008 10580 9359 6/14/2008 10580 9359 6/15/2008 10580 9359 6/16/2008 10374 9450 6/17/2008 10488 9398 6/18/2008 10651 9323 6/19/2008 10448 9414 6/20/2008 10798 9260 6/21/2008 10798 9260 6/22/2008 10798 9260 6/23/2008 10977 9185 6/24/2008 11339 9033 6/25/2008 11071 9140 6/26/2008 11613 8917 6/27/2008 11633 8914 6/28/2008 11633 8914 6/29/2008 11633 8914 6/30/2008 11908 8806 7/1/2008 11851 8831 7/2/2008 12522 8585 7/3/2008 12759 8502 7/4/2008 12759 8502 7/5/2008 12759 8502 7/6/2008 12759 8502 7/7/2008 13049 8406 7/8/2008 12089 8719 7/9/2008 12774 8477 7/10/2008 12501 8562 7/11/2008 12341 8621 7/12/2008 12341 8621 7/13/2008 12341 8621 7/14/2008 12724 8488 7/15/2008 12813 8460 7/16/2008 11875 8772 7/17/2008 11528 8899 7/18/2008 11658 8854 7/19/2008 11658 8854 7/20/2008 11658 8854 7/21/2008 11499 8912 7/22/2008 10865 9157 7/23/2008 10799 9188 7/24/2008 11303 8973 7/25/2008 11054 9075 7/26/2008 11054 9075 7/27/2008 11054 9075 7/28/2008 11499 8893 7/29/2008 10887 9130 7/30/2008 10758 9186 7/31/2008 10891 9132 8/1/2008 10838 9153 8/2/2008 10838 9153 8/3/2008 10838 9153 8/4/2008 11205 9000 8/5/2008 10674 9216 8/6/2008 10527 9278 8/7/2008 10886 9119 8/8/2008 10259 9386 8/9/2008 10259 9386 8/10/2008 10259 9386 8/11/2008 9780 9601 8/12/2008 9942 9523 8/13/2008 9864 9560 8/14/2008 9690 9646 8/15/2008 9718 9633 8/16/2008 9718 9633 8/17/2008 9718 9633 8/18/2008 10019 9488 8/19/2008 10341 9337 8/20/2008 10291 9357 8/21/2008 10479 9276 8/22/2008 10121 9434 8/23/2008 10121 9434 8/24/2008 10121 9434 8/25/2008 10589 9216 8/26/2008 10507 9254 8/27/2008 10229 9376 8/28/2008 9814 9568 8/29/2008 10036 9462 8/30/2008 10036 9462 8/31/2008 10036 9462 9/1/2008 10036 9462 9/2/2008 10059 9449 9/3/2008 9965 9493 9/4/2008 10503 9196 9/5/2008 10604 9199 9/6/2008 10604 9199 9/7/2008 10604 9199 9/8/2008 10183 9379 9/9/2008 10903 9052 9/10/2008 10619 9178 9/11/2008 10536 9204 9/12/2008 10508 9221 9/13/2008 10508 9221 9/14/2008 10508 9221 9/15/2008 11384 8830 9/16/2008 10763 9099 9/17/2008 11838 8660 9/18/2008 10224 9266 9/19/2008 9325 9651 9/20/2008 9325 9651 9/21/2008 9325 9651 9/22/2008 10140 9225 9/23/2008 10433 9081 9/24/2008 10725 8935 9/25/2008 10515 9038 9/26/2008 10513 9030 9/27/2008 10513 9030 9/28/2008 10513 9030 9/29/2008 11984 8428 9/30/2008 11012 8708 10/1/2008 11405 8606 10/2/2008 12589 8172 10/3/2008 13185 7938 10/4/2008 13185 7938 10/5/2008 13185 7938 10/6/2008 14209 7637 10/7/2008 16010 7163 10/8/2008 16814 7005 10/9/2008 19520 6399 10/10/2008 17552 6698 10/11/2008 17552 6698 10/12/2008 17552 6698 10/13/2008 14385 7319 10/14/2008 15347 7111 10/15/2008 18162 6438 10/16/2008 15664 6880 10/17/2008 16555 6752 10/18/2008 16555 6752 10/19/2008 16555 6752 10/20/2008 15128 7014 10/21/2008 16013 6806 10/22/2008 17648 6437 10/23/2008 18696 6282 10/24/2008 20045 6041 10/25/2008 20045 6041 10/26/2008 20045 6041 10/27/2008 21994 5750 10/28/2008 18454 6188 10/29/2008 18338 6297 10/30/2008 16414 6596 10/31/2008 14879 6896
TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (11/05/2007) --------------- RYDEX INVERSE 2X RUSSELL 2000 ETF................................ 48.79% RUSSELL 2000 TOTAL RETURN INDEX.................................. -31.04%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 15 RYDEX 2x S&P SELECT SECTOR ENERGY ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- With the energy sector suffering significant losses during the one-year period ended October 31, 2008, it's not surprising that Rydex 2x S&P Select Sector Energy ETF returned -72.94%. since its inception on 6/10/2008. In that period, its benchmark, the Energy Select Sector Index, returned -40.70%. Rydex 2x S&P Select Sector Energy ETF achieved a daily correlation of 100% to its benchmark of 200% of the daily price movement of the Energy Select Sector Index. Soaring oil and coal prices helped to ensure that energy stocks delivered some of the best-performing companies in the first half of 2008. In the second quarter alone, coal industry stocks jumped 65% on rising coal prices. Oil and gas exploration companies jumped nearly 32% in tandem with record oil prices as expectations for continued international energy demands would lead to increases in spending on oil and gas exploration. However, during the summer, rising inflation concerns both in the United States and abroad, coupled with the continued housing and financial crises, caused concerns about a global economic slowdown. Cost-conscious consumers began to drive less and conserve electricity. By July month-end, oil prices began a rapid descent that saw prices as low as $68 by the end of October. The once high-flying coal companies also suffered as oil prices declined due to a waning demand for alternative energy sources. Since the ETF's inception on 6/10/2008 through the year ended 10/31/2008, coal and consumable fuel companies fell an average of 67%. Given their relatively small weight in the portfolio their effect on total return was minor compared to that of integrated oil and gas companies such as ExxonMobil (XOM) and Chevron (CVX). With more than 50% exposure to this sector in the portfolio, negative performance from this industry was the primary driver of positive returns. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX 2X S&P S&P 500 SELECT SECTOR TOTAL RETURN ENERGY SELECT ENERGY ETF(A) INDEX(B) SECTOR INDEX(C) ------------- ------------ --------------- 6/10/2008 10000 10000 10000 6/11/2008 10168 9833 10084 6/12/2008 9808 9866 9905 6/13/2008 10020 10015 10011 6/14/2008 10020 10015 10011 6/15/2008 10020 10015 10011 6/16/2008 10091 10016 10047 6/17/2008 10468 9948 10236 6/18/2008 10481 9851 10243 6/19/2008 10019 9891 10017 6/20/2008 9881 9708 9950 6/21/2008 9881 9708 9950 6/22/2008 9881 9708 9950 6/23/2008 10648 9708 10334 6/24/2008 10280 9681 10156 6/25/2008 10145 9738 10091 6/26/2008 9937 9455 9988 6/27/2008 10137 9420 10088 6/28/2008 10137 9420 10088 6/29/2008 10137 9420 10088 6/30/2008 10477 9432 10258 7/1/2008 10607 9470 10322 7/2/2008 9859 9298 9957 7/3/2008 9703 9309 9880 7/4/2008 9703 9309 9880 7/5/2008 9703 9309 9880 7/6/2008 9703 9309 9880 7/7/2008 9224 9231 9637 7/8/2008 8929 9392 9485 7/9/2008 8516 9179 9265 7/10/2008 9004 9243 9530 7/11/2008 8900 9141 9475 7/12/2008 8900 9141 9475 7/13/2008 8900 9141 9475 7/14/2008 9047 9059 9555 7/15/2008 8267 8960 9143 7/16/2008 7900 9186 8944 7/17/2008 7584 9297 8767 7/18/2008 7804 9299 8897 7/19/2008 7804 9299 8897 7/20/2008 7804 9299 8897 7/21/2008 8287 9295 9174 7/22/2008 7852 9420 8933 7/23/2008 7193 9459 8559 7/24/2008 7108 9240 8509 7/25/2008 7256 9279 8599 7/26/2008 7256 9279 8599 7/27/2008 7256 9279 8599 7/28/2008 7211 9106 8572 7/29/2008 7073 9320 8487 7/30/2008 7901 9476 8987 7/31/2008 7360 9353 8677 8/1/2008 7313 9301 8652 8/2/2008 7313 9301 8652 8/3/2008 7313 9301 8652 8/4/2008 6560 9217 8208 8/5/2008 6665 9483 8275 8/6/2008 6968 9519 8465 8/7/2008 6755 9349 8334 8/8/2008 6628 9573 8258 8/9/2008 6628 9573 8258 8/10/2008 6628 9573 8258 8/11/2008 6588 9642 8226 8/12/2008 6527 9526 8188 8/13/2008 7009 9501 8489 8/14/2008 6824 9554 8376 8/15/2008 6567 9594 8213 8/16/2008 6567 9594 8213 8/17/2008 6567 9594 8213 8/18/2008 6407 9450 8112 8/19/2008 6791 9363 8355 8/20/2008 7219 9421 8617 8/21/2008 7548 9446 8814 8/22/2008 7271 9554 8653 8/23/2008 7271 9554 8653 8/24/2008 7271 9554 8653 8/25/2008 7069 9366 8534 8/26/2008 7329 9401 8692 8/27/2008 7529 9478 8811 8/28/2008 7372 9620 8718 8/29/2008 7185 9488 8608 8/30/2008 7185 9488 8608 8/31/2008 7185 9488 8608 9/1/2008 7185 9488 8608 9/2/2008 6469 9450 8181 9/3/2008 6385 9435 8129 9/4/2008 6128 9153 7964 9/5/2008 6083 9194 7936 9/6/2008 6083 9194 7936 9/7/2008 6083 9194 7936 9/8/2008 5963 9384 7856 9/9/2008 5149 9064 7320 9/10/2008 5537 9120 7593 9/11/2008 5717 9249 7717 9/12/2008 6056 9269 7947 9/13/2008 6056 9269 7947 9/14/2008 6056 9269 7947 9/15/2008 5167 8832 7364 9/16/2008 5559 8987 7641 9/17/2008 5281 8563 7451 9/18/2008 5604 8937 7673 9/19/2008 6423 9297 8234 9/20/2008 6423 9297 8234 9/21/2008 6423 9297 8234 9/22/2008 6273 8942 8140 9/23/2008 5877 8802 7885 9/24/2008 5875 8785 7884 9/25/2008 6133 8958 8058 9/26/2008 5870 8988 7886 9/27/2008 5870 8988 7886 9/28/2008 5870 8988 7886 9/29/2008 4505 8198 6986 9/30/2008 5055 8643 7407 10/1/2008 4824 8605 7239 10/2/2008 4125 8259 6729 10/3/2008 4097 8148 6707 10/4/2008 4097 8148 6707 10/5/2008 4097 8148 6707 10/6/2008 3750 7834 6425 10/7/2008 3273 7385 6022 10/8/2008 3336 7305 6078 10/9/2008 2555 6749 5380 10/10/2008 2127 6670 4936 10/11/2008 2127 6670 4936 10/12/2008 2127 6670 4936 10/13/2008 2945 7442 5883 10/14/2008 2943 7403 5883 10/15/2008 2010 6735 4948 10/16/2008 2308 7021 5314 10/17/2008 2316 6978 5325 10/18/2008 2316 6978 5325 10/19/2008 2316 6978 5325 10/20/2008 2852 7310 5930 10/21/2008 2615 7085 5682 10/22/2008 2048 6654 5067 10/23/2008 2290 6739 5374 10/24/2008 2104 6506 5154 10/25/2008 2104 6506 5154 10/26/2008 2104 6506 5154 10/27/2008 1844 6300 4844 10/28/2008 2273 6979 5405 10/29/2008 2408 6903 5562 10/30/2008 2652 7082 5840 10/31/2008 2706 7191 5902
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX 2X S&P SELECT SECTOR ENERGY ETF............................ -72.94% ENERGY SELECT SECTOR INDEX....................................... -40.70% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 16 RYDEX 2x S&P SELECT SECTOR ENERGY ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ EXXON MOBIL CORP. 18.48% CHEVRON CORP. 11.83% CONOCOPHILLIPS 6.20% OCCIDENTAL PETROLEUM CORP. 3.89% SCHLUMBERGER, LTD. 3.31% DEVON ENERGY CORP. 3.26% APACHE CORP. 2.65% TRANSOCEAN, INC. 2.48% EOG RESOURCES, INC. 2.08% XTO ENERGY, INC. 2.05% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Oil, Gas & Consumable Fuels 77.24 Energy Equipment & Services 17.11 Road & Rail 5.65
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. ANNUAL REPORT 17 RYDEX INVERSE 2x S&P SELECT SECTOR ENERGY ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 6/10/2008, Rydex Inverse 2x S&P Select Sector Energy ETF returned 49.75%. Since inception, its benchmark, the Energy Select Sector Index, returned -40.70%. The ETF achieved a daily correlation of 100% to its benchmark of -200% of the daily price movement of the Energy Select Sector Index. Soaring oil and coal prices helped to ensure that energy stocks delivered some of the best-performing companies in the first half of 2008. In the second quarter alone, coal industry stocks jumped 65% on rising coal prices. Oil and gas exploration companies jumped nearly 32% in tandem with record oil prices as expectations for continued international energy demands would lead to increases in spending on oil and gas exploration. However, during the summer, rising inflation concerns both in the United States and abroad, coupled with the continued housing and financial crises, caused concerns about a global economic slowdown. Cost-conscious consumers began to drive less and conserve electricity. By July month-end, oil prices began a rapid descent that saw prices as low as $68 by the end of October. The once high-flying coal companies also suffered as oil prices declined due to a waning demand for alternative energy sources. Since the ETF's inception on 6/10/2008 through the year ended 10/31/2008, coal and consumable fuel companies fell an average of 67%. Given their relatively small weight in the portfolio their effect on total return was minor compared to that of integrated oil and gas companies such as ExxonMobil (XOM) and Chevron (CVX). With more than 50% exposure to this sector in the portfolio, negative performance from this industry was the primary driver of positive returns. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX INVERSE 2X S&P SELECT S&P ENERGY SECTOR ENERGY 500 TOTAL SELECT SECTOR ETF(A) RETURN INDEX(B) INDEX(C) ------------- --------------- ------------- 6/10/2008 10000 10000 10000 6/11/2008 9831 9833 10084 6/12/2008 10176 9866 9905 6/13/2008 9964 10015 10011 6/14/2008 9964 10015 10011 6/15/2008 9964 10015 10011 6/16/2008 9895 10016 10047 6/17/2008 9523 9948 10236 6/18/2008 9511 9851 10243 6/19/2008 9933 9891 10017 6/20/2008 10069 9708 9950 6/21/2008 10069 9708 9950 6/22/2008 10069 9708 9950 6/23/2008 9299 9708 10334 6/24/2008 9621 9681 10156 6/25/2008 9747 9738 10091 6/26/2008 9943 9455 9988 6/27/2008 9749 9420 10088 6/28/2008 9749 9420 10088 6/29/2008 9749 9420 10088 6/30/2008 9423 9432 10258 7/1/2008 9308 9470 10322 7/2/2008 9972 9298 9957 7/3/2008 10127 9309 9880 7/4/2008 10127 9309 9880 7/5/2008 10127 9309 9880 7/6/2008 10127 9309 9880 7/7/2008 10621 9231 9637 7/8/2008 10949 9392 9485 7/9/2008 11456 9179 9265 7/10/2008 10811 9243 9530 7/11/2008 10940 9141 9475 7/12/2008 10940 9141 9475 7/13/2008 10940 9141 9475 7/14/2008 10759 9059 9555 7/15/2008 11677 8960 9143 7/16/2008 12173 9186 8944 7/17/2008 12657 9297 8767 7/18/2008 12280 9299 8897 7/19/2008 12280 9299 8897 7/20/2008 12280 9299 8897 7/21/2008 11516 9295 9174 7/22/2008 12119 9420 8933 7/23/2008 13133 9459 8559 7/24/2008 13289 9240 8509 7/25/2008 13009 9279 8599 7/26/2008 13009 9279 8599 7/27/2008 13009 9279 8599 7/28/2008 13092 9106 8572 7/29/2008 13339 9320 8487 7/30/2008 11759 9476 8987 7/31/2008 12572 9353 8677 8/1/2008 12651 9301 8652 8/2/2008 12651 9301 8652 8/3/2008 12651 9301 8652 8/4/2008 13933 9217 8208 8/5/2008 13705 9483 8275 8/6/2008 13068 9519 8465 8/7/2008 13476 9349 8334 8/8/2008 13728 9573 8258 8/9/2008 13728 9573 8258 8/10/2008 13728 9573 8258 8/11/2008 13812 9642 8226 8/12/2008 13943 9526 8188 8/13/2008 12923 9501 8489 8/14/2008 13267 9554 8376 8/15/2008 13765 9594 8213 8/16/2008 13765 9594 8213 8/17/2008 13765 9594 8213 8/18/2008 14101 9450 8112 8/19/2008 13253 9363 8355 8/20/2008 12417 9421 8617 8/21/2008 11851 9446 8814 8/22/2008 12285 9554 8653 8/23/2008 12285 9554 8653 8/24/2008 12285 9554 8653 8/25/2008 12628 9366 8534 8/26/2008 12156 9401 8692 8/27/2008 11825 9478 8811 8/28/2008 12077 9620 8718 8/29/2008 12388 9488 8608 8/30/2008 12388 9488 8608 8/31/2008 12388 9488 8608 9/1/2008 12388 9488 8608 9/2/2008 13615 9450 8181 9/3/2008 13791 9435 8129 9/4/2008 14359 9153 7964 9/5/2008 14465 9194 7936 9/6/2008 14465 9194 7936 9/7/2008 14465 9194 7936 9/8/2008 14749 9384 7856 9/9/2008 16764 9064 7320 9/10/2008 15535 9120 7593 9/11/2008 15031 9249 7717 9/12/2008 14129 9269 7947 9/13/2008 14129 9269 7947 9/14/2008 14129 9269 7947 9/15/2008 16209 8832 7364 9/16/2008 15020 8987 7641 9/17/2008 15777 8563 7451 9/18/2008 14905 8937 7673 9/19/2008 12820 9297 8234 9/20/2008 12820 9297 8234 9/21/2008 12820 9297 8234 9/22/2008 13101 8942 8140 9/23/2008 13882 8802 7885 9/24/2008 13886 8785 7884 9/25/2008 13284 8958 8058 9/26/2008 13848 8988 7886 9/27/2008 13848 8988 7886 9/28/2008 13848 8988 7886 9/29/2008 16952 8198 6986 9/30/2008 14936 8643 7407 10/1/2008 15602 8605 7239 10/2/2008 17743 8259 6729 10/3/2008 17862 8148 6707 10/4/2008 17862 8148 6707 10/5/2008 17862 8148 6707 10/6/2008 19354 7834 6425 10/7/2008 21796 7385 6022 10/8/2008 21451 7305 6078 10/9/2008 26238 6749 5380 10/10/2008 30401 6670 4936 10/11/2008 30401 6670 4936 10/12/2008 30401 6670 4936 10/13/2008 19002 7442 5883 10/14/2008 19041 7403 5883 10/15/2008 24990 6735 4948 10/16/2008 21342 7021 5314 10/17/2008 21258 6978 5325 10/18/2008 21258 6978 5325 10/19/2008 21258 6978 5325 10/20/2008 16598 7310 5930 10/21/2008 18003 7085 5682 10/22/2008 21823 6654 5067 10/23/2008 19171 6739 5374 10/24/2008 20760 6506 5154 10/25/2008 20760 6506 5154 10/26/2008 20760 6506 5154 10/27/2008 23129 6300 4844 10/28/2008 17949 6979 5405 10/29/2008 16887 6903 5562 10/30/2008 15313 7082 5840 10/31/2008 14976 7191 5902
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX INVERSE 2X S&P SELECT SECTOR ENERGY ETF.................... 49.75% ENERGY SELECT SECTOR INDEX....................................... -40.70% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 18 RYDEX 2x S&P SELECT SECTOR FINANCIALS ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 06/10/2008, Rydex 2x S&P Select Sector Financials ETF returned -64.51%. Over the same time period, its benchmark, the Financials Select Sector Index, returned -31.31%. For the period since its inception, this ETF achieved a daily correlation of 100% to its benchmark of 200% of the daily price movement of the Financials Select Sector Index. Financial concerns that began in the fall of 2007 accelerated into a global economic crisis culminating in a historic government intervention and restrictions on short sales of financial companies. The market witnessed stunning failures of major investment banks due to the toxic housing-backed debt instruments. Bear Stearns was purchased by JP Morgan, the government took control of Fannie Mae and Freddie Mac, and parts of Lehman Brothers were acquired by Barclays. Wall Street institution Merrill Lynch was acquired by Bank of America, and the two remaining investment banks, Goldman Sachs and Morgan Stanley, changed their structure to become bank holding companies in order to access much needed financing from the Federal Reserve. Not only did investment banks have trouble, but insurance companies found themselves facing catastrophic ratings downgrades. Multi-line insurers like AIG and investment banks like Goldman Sachs contributed significantly to the benchmark's loss, with AIG losing more than 90% of its value and Goldman Sachs down 40% in the same period. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX 2X S&P S&P 500 FINANCIAL SELECT SECTOR TOTAL RETURN SELECT SECTOR FINANCIAL ETF(A) INDEX(B) INDEX(C) ---------------- ------------ ------------- 6/10/2008 10000 10000 10000 6/11/2008 9352 9833 9672 6/12/2008 9732 9866 9868 6/13/2008 10121 10015 10070 6/14/2008 10121 10015 10070 6/15/2008 10121 10015 10070 6/16/2008 10333 10016 10176 6/17/2008 9729 9948 9878 6/18/2008 9493 9851 9758 6/19/2008 9659 9891 9844 6/20/2008 9165 9708 9594 6/21/2008 9165 9708 9594 6/22/2008 9165 9708 9594 6/23/2008 8661 9708 9332 6/24/2008 8917 9681 9472 6/25/2008 8987 9738 9508 6/26/2008 8205 9455 9086 6/27/2008 7979 9420 8962 6/28/2008 7979 9420 8962 6/29/2008 7979 9420 8962 6/30/2008 7637 9432 8771 7/1/2008 7807 9470 8860 7/2/2008 7584 9298 8733 7/3/2008 7531 9309 8705 7/4/2008 7531 9309 8705 7/5/2008 7531 9309 8705 7/6/2008 7531 9309 8705 7/7/2008 7053 9231 8430 7/8/2008 7863 9392 8912 7/9/2008 7055 9179 8446 7/10/2008 6921 9243 8368 7/11/2008 6567 9141 8153 7/12/2008 6567 9141 8153 7/13/2008 6567 9141 8153 7/14/2008 5905 9059 7744 7/15/2008 5552 8960 7515 7/16/2008 6929 9186 8440 7/17/2008 7825 9297 8986 7/18/2008 7995 9299 9085 7/19/2008 7995 9299 9085 7/20/2008 7995 9299 9085 7/21/2008 7860 9295 9008 7/22/2008 8892 9420 9602 7/23/2008 9223 9459 9782 7/24/2008 7981 9240 9122 7/25/2008 7884 9279 9067 7/26/2008 7884 9279 9067 7/27/2008 7884 9279 9067 7/28/2008 7172 9106 8654 7/29/2008 8245 9320 9303 7/30/2008 8572 9476 9489 7/31/2008 8368 9353 9369 8/1/2008 8468 9301 9426 8/2/2008 8468 9301 9426 8/3/2008 8468 9301 9426 8/4/2008 8255 9217 9308 8/5/2008 9088 9483 9778 8/6/2008 8919 9519 9681 8/7/2008 8031 9349 9195 8/8/2008 8591 9573 9520 8/9/2008 8591 9573 9520 8/10/2008 8591 9573 9520 8/11/2008 8913 9642 9698 8/12/2008 8001 9526 9194 8/13/2008 7531 9501 8922 8/14/2008 7916 9554 9149 8/15/2008 8089 9594 9251 8/16/2008 8089 9594 9251 8/17/2008 8089 9594 9251 8/18/2008 7509 9450 8920 8/19/2008 7045 9363 8649 8/20/2008 7280 9421 8794 8/21/2008 7127 9446 8700 8/22/2008 7571 9554 8970 8/23/2008 7571 9554 8970 8/24/2008 7571 9554 8970 8/25/2008 7100 9366 8691 8/26/2008 7201 9401 8753 8/27/2008 7443 9478 8899 8/28/2008 8116 9620 9300 8/29/2008 8020 9488 9245 8/30/2008 8020 9488 9245 8/31/2008 8020 9488 9245 9/1/2008 8020 9488 9245 9/2/2008 8311 9450 9413 9/3/2008 8567 9435 9541 9/4/2008 7765 9153 9093 9/5/2008 8271 9194 9387 9/6/2008 8271 9194 9387 9/7/2008 8271 9194 9387 9/8/2008 9039 9384 9823 9/9/2008 7845 9064 9175 9/10/2008 7732 9120 9110 9/11/2008 7973 9249 9248 9/12/2008 7803 9269 9150 9/13/2008 7803 9269 9150 9/14/2008 7803 9269 9150 9/15/2008 6161 8832 8185 9/16/2008 6957 8987 8693 9/17/2008 5721 8563 7916 9/18/2008 7087 8937 8845 9/19/2008 8659 9297 9828 9/20/2008 8659 9297 9828 9/21/2008 8659 9297 9828 9/22/2008 7188 8942 8994 9/23/2008 6971 8802 8858 9/24/2008 6764 8785 8726 9/25/2008 7116 8958 8954 9/26/2008 7554 8988 9226 9/27/2008 7554 8988 9226 9/28/2008 7554 8988 9226 9/29/2008 5140 8198 7749 9/30/2008 6611 8643 8763 10/1/2008 6888 8605 8951 10/2/2008 6305 8259 8565 10/3/2008 5802 8148 8225 10/4/2008 5802 8148 8225 10/5/2008 5802 8148 8225 10/6/2008 5313 7834 7882 10/7/2008 4064 7385 6973 10/8/2008 3815 7305 6763 10/9/2008 2902 6749 5969 10/10/2008 3320 6670 6384 10/11/2008 3320 6670 6384 10/12/2008 3320 6670 6384 10/13/2008 3988 7442 7038 10/14/2008 4505 7403 7489 10/15/2008 3681 6735 6806 10/16/2008 3806 7021 6919 10/17/2008 3628 6978 6759 10/18/2008 3628 6978 6759 10/19/2008 3628 6978 6759 10/20/2008 3835 7310 6949 10/21/2008 3695 7085 6821 10/22/2008 3180 6654 6346 10/23/2008 3126 6739 6291 10/24/2008 2887 6506 6049 10/25/2008 2887 6506 6049 10/26/2008 2887 6506 6049 10/27/2008 2649 6300 5802 10/28/2008 3318 6979 6527 10/29/2008 3130 6903 6340 10/30/2008 3204 7082 6418 10/31/2008 3549 7191 6770
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX 2X S&P SELECT SECTOR FINANCIALS ETF........................ -64.51% FINANCIALS SELECT SECTOR INDEX................................... -31.31% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 19 RYDEX 2x S&P SELECT SECTOR FINANCIALS ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ JPMORGAN CHASE & CO. 9.75% BANK OF AMERICA CORP. 7.78% WELLS FARGO & CO. 7.23% CITIGROUP, INC. 4.77% U.S. BANCORP 3.33% GOLDMAN SACHS GROUP, INC. 2.58% BANK OF NEW YORK MELLON CORP. 2.40% AMERICAN EXPRESS CO. 2.05% MERRILL LYNCH & CO., INC. 1.83% METLIFE, INC. 1.62% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Diversified Financial Services 31.30 Commercial Banks 22.61 Capital Markets 17.10 Insurance 16.33 Real Estate Investment Trusts (REITs) 7.12 Consumer Finance 4.54 Thrifts & Mortgage Finance 0.90 Real Estate Management & Development 0.10
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. ANNUAL REPORT 20 RYDEX INVERSE 2x S&P SELECT SECTOR FINANCIALS ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 06/10/2008, Rydex Inverse 2x S&P Select Sector Financials ETF returned -4.19%. Over the same time period, its benchmark, the Financials Select Sector Index, returned -31.31%. For the period since its inception, Rydex Inverse 2x S&P Select Sector Financials ETF achieved a daily correlation of 99% to its benchmark of -200% of the daily price movement of the Financials Select Sector Index. It must be noted that for most of the period since inception, the Select Sector Financials Index moved sideways and was characterized by extreme volatility due to the implosion of the already-struggling financial sector. Inter-bank lending came grinding to a halt on concerns of credit worthiness, and the Volatility Index(R) (VIX) jumped to historic all-time highs in September and October 2008, as the crisis culminated in the need for government intervention in the form of the Department of Treasury's Troubled Assets Relief (TARP) Program. On September 19, 2008, the Securities and Exchange Commission (SEC) took emergency action and banned all short selling of more than 900 financial-services stocks. This government intervention was felt not only in financials -- additionally, the ban on short selling had a large ripple effect on the futures and other derivative markets, resulting in increased uncertainty and reduced liquidity. This increased volatility in the stock market contributed to wider daily tracking variance in the ETF during September and October. The SEC lifted the ban on short selling on October 8, following the passage by the U.S. Congress of a $700 billion bailout plan. During this time, Rydex halted creations in the fund to minimize the difficulty in our managing the fund. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX INVERSE 2X S&P S&P SELECT SECTOR 500 TOTAL FINANCIAL SELECT FINANCIAL ETF(A) RETURN INDEX(B) SECTOR INDEX(C) ---------------- --------------- ---------------- 6/10/2008 10000 10000 10000 6/11/2008 10648 9833 9672 6/12/2008 10217 9866 9868 6/13/2008 9791 10015 10070 6/14/2008 9791 10015 10070 6/15/2008 9791 10015 10070 6/16/2008 9580 10016 10176 6/17/2008 10144 9948 9878 6/18/2008 10388 9851 9758 6/19/2008 10205 9891 9844 6/20/2008 10731 9708 9594 6/21/2008 10731 9708 9594 6/22/2008 10731 9708 9594 6/23/2008 11311 9708 9332 6/24/2008 10973 9681 9472 6/25/2008 10889 9738 9508 6/26/2008 11844 9455 9086 6/27/2008 12165 9420 8962 6/28/2008 12165 9420 8962 6/29/2008 12165 9420 8962 6/30/2008 12685 9432 8771 7/1/2008 12413 9470 8860 7/2/2008 12773 9298 8733 7/3/2008 12863 9309 8705 7/4/2008 12863 9309 8705 7/5/2008 12863 9309 8705 7/6/2008 12863 9309 8705 7/7/2008 13668 9231 8430 7/8/2008 12160 9392 8912 7/9/2008 13427 9179 8446 7/10/2008 13676 9243 8368 7/11/2008 14392 9141 8153 7/12/2008 14392 9141 8153 7/13/2008 14392 9141 8153 7/14/2008 15848 9059 7744 7/15/2008 16748 8960 7515 7/16/2008 12753 9186 8440 7/17/2008 11052 9297 8986 7/18/2008 10805 9299 9085 7/19/2008 10805 9299 9085 7/20/2008 10805 9299 9085 7/21/2008 10981 9295 9008 7/22/2008 9543 9420 9602 7/23/2008 9175 9459 9782 7/24/2008 10401 9240 9122 7/25/2008 10528 9279 9067 7/26/2008 10528 9279 9067 7/27/2008 10528 9279 9067 7/28/2008 11504 9106 8654 7/29/2008 9793 9320 9303 7/30/2008 9392 9476 9489 7/31/2008 9611 9353 9369 8/1/2008 9496 9301 9426 8/2/2008 9496 9301 9426 8/3/2008 9496 9301 9426 8/4/2008 9729 9217 9308 8/5/2008 8751 9483 9778 8/6/2008 8913 9519 9681 8/7/2008 9801 9349 9195 8/8/2008 9104 9573 9520 8/9/2008 9104 9573 9520 8/10/2008 9104 9573 9520 8/11/2008 8771 9642 9698 8/12/2008 9699 9526 9194 8/13/2008 10269 9501 8922 8/14/2008 9745 9554 9149 8/15/2008 9528 9594 9251 8/16/2008 9528 9594 9251 8/17/2008 9528 9594 9251 8/18/2008 10215 9450 8920 8/19/2008 10827 9363 8649 8/20/2008 10468 9421 8794 8/21/2008 10697 9446 8700 8/22/2008 10055 9554 8970 8/23/2008 10055 9554 8970 8/24/2008 10055 9554 8970 8/25/2008 10683 9366 8691 8/26/2008 10532 9401 8753 8/27/2008 10173 9478 8899 8/28/2008 9243 9620 9300 8/29/2008 9356 9488 9245 8/30/2008 9356 9488 9245 8/31/2008 9356 9488 9245 9/1/2008 9356 9488 9245 9/2/2008 9024 9450 9413 9/3/2008 8739 9435 9541 9/4/2008 9563 9153 9093 9/5/2008 8959 9194 9387 9/6/2008 8959 9194 9387 9/7/2008 8959 9194 9387 9/8/2008 8120 9384 9823 9/9/2008 9168 9064 9175 9/10/2008 9295 9120 9110 9/11/2008 9012 9249 9248 9/12/2008 9209 9269 9150 9/13/2008 9209 9269 9150 9/14/2008 9209 9269 9150 9/15/2008 11180 8832 8185 9/16/2008 9885 8987 8693 9/17/2008 11629 8563 7916 9/18/2008 9044 8937 8845 9/19/2008 7048 9297 9828 9/20/2008 7048 9297 9828 9/21/2008 7048 9297 9828 9/22/2008 8198 8942 8994 9/23/2008 8436 8802 8858 9/24/2008 8612 8785 8726 9/25/2008 8195 8958 8954 9/26/2008 7808 8988 9226 9/27/2008 7808 8988 9226 9/28/2008 7808 8988 9226 9/29/2008 9992 8198 7749 9/30/2008 8316 8643 8763 10/1/2008 8063 8605 8951 10/2/2008 8656 8259 8565 10/3/2008 9169 8148 8225 10/4/2008 9169 8148 8225 10/5/2008 9169 8148 8225 10/6/2008 9862 7834 7882 10/7/2008 11853 7385 6973 10/8/2008 12450 7305 6763 10/9/2008 15025 6749 5969 10/10/2008 13069 6670 6384 10/11/2008 13069 6670 6384 10/12/2008 13069 6670 6384 10/13/2008 10202 7442 7038 10/14/2008 8852 7403 7489 10/15/2008 10492 6735 6806 10/16/2008 10120 7021 6919 10/17/2008 10614 6978 6759 10/18/2008 10614 6978 6759 10/19/2008 10614 6978 6759 10/20/2008 9978 7310 6949 10/21/2008 10382 7085 6821 10/22/2008 11892 6654 6346 10/23/2008 12103 6739 6291 10/24/2008 13085 6506 6049 10/25/2008 13085 6506 6049 10/26/2008 13085 6506 6049 10/27/2008 14175 6300 5802 10/28/2008 10602 6979 6527 10/29/2008 11262 6903 6340 10/30/2008 10870 7082 6418 10/31/2008 9581 7191 6770
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX INVERSE 2X S&P SELECT SECTOR FINANCIALS ETF................ -4.19% FINANCIALS SELECT SECTOR INDEX................................... -31.31% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 21 RYDEX 2x S&P SELECT SECTOR TECHNOLOGY ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 6/10/2008, Rydex 2x S&P Select Sector Technology ETF returned -58.36%. Over the same time period, its benchmark, the Technology Select Sector Index, returned -32.01%. For the period since its inception, Rydex Inverse 2x S&P Select Sector Technology ETF achieved a daily correlation of 100% to its benchmark of 200% of the daily price movement of the Technology Select Sector Index. The technology industry suffered with the rest of the economy as expectations for global technology spending dried up in 2008. In fact, losses in the technology sector were sizable across the board. Computer and peripheral companies make up the largest component of the technology sector. Companies such as Apple (AAPL), IBM (IBM), and Dell Inc. (DELL) contributing the most to the sector's decline. Software companies such as giant Microsoft (MSFT) also contributed to a large loss in the tech sector. Also, historic volatility in the stock market in September and October led to wider daily tracking variances for the fund in September and October. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX 2X S&P SELECT S&P 500 TECHNOLOGY SECTOR TECHNOLOGY TOTAL RETURN SELECT SECTOR ETF(A) INDEX(B) INDEX(C) ----------------- ------------ ------------- 6/10/2008 10000 10000 10000 6/11/2008 9513 9833 9757 6/12/2008 9623 9866 9813 6/13/2008 9981 10015 9999 6/14/2008 9981 10015 9999 6/15/2008 9981 10015 9999 6/16/2008 10008 10016 10013 6/17/2008 9845 9948 9932 6/18/2008 9599 9851 9808 6/19/2008 9808 9891 9916 6/20/2008 9320 9708 9670 6/21/2008 9320 9708 9670 6/22/2008 9320 9708 9670 6/23/2008 9216 9708 9617 6/24/2008 9165 9681 9591 6/25/2008 9427 9738 9729 6/26/2008 8784 9455 9396 6/27/2008 8685 9420 9345 6/28/2008 8685 9420 9345 6/29/2008 8685 9420 9345 6/30/2008 8629 9432 9316 7/1/2008 8644 9470 9324 7/2/2008 8355 9298 9168 7/3/2008 8341 9309 9164 7/4/2008 8341 9309 9164 7/5/2008 8341 9309 9164 7/6/2008 8341 9309 9164 7/7/2008 8447 9231 9222 7/8/2008 8637 9392 9311 7/9/2008 8107 9179 9023 7/10/2008 8317 9243 9140 7/11/2008 8169 9141 9059 7/12/2008 8169 9141 9059 7/13/2008 8169 9141 9059 7/14/2008 8015 9059 8974 7/15/2008 8040 8960 8989 7/16/2008 8352 9186 9163 7/17/2008 8503 9297 9246 7/18/2008 8311 9299 9142 7/19/2008 8311 9299 9142 7/20/2008 8311 9299 9142 7/21/2008 8199 9295 9081 7/22/2008 8164 9420 9063 7/23/2008 8448 9459 9220 7/24/2008 8084 9240 9021 7/25/2008 8281 9279 9131 7/26/2008 8281 9279 9131 7/27/2008 8281 9279 9131 7/28/2008 7924 9106 8934 7/29/2008 8225 9320 9104 7/30/2008 8313 9476 9153 7/31/2008 8211 9353 9097 8/1/2008 8100 9301 9037 8/2/2008 8100 9301 9037 8/3/2008 8100 9301 9037 8/4/2008 8024 9217 8995 8/5/2008 8483 9483 9246 8/6/2008 8639 9519 9330 8/7/2008 8596 9349 9307 8/8/2008 9007 9573 9530 8/9/2008 9007 9573 9530 8/10/2008 9007 9573 9530 8/11/2008 9144 9642 9604 8/12/2008 9117 9526 9590 8/13/2008 9065 9501 9563 8/14/2008 9180 9554 9623 8/15/2008 9233 9594 9653 8/16/2008 9233 9594 9653 8/17/2008 9233 9594 9653 8/18/2008 8995 9450 9529 8/19/2008 8744 9363 9393 8/20/2008 8787 9421 9416 8/21/2008 8753 9446 9399 8/22/2008 9016 9554 9542 8/23/2008 9016 9554 9542 8/24/2008 9016 9554 9542 8/25/2008 8681 9366 9365 8/26/2008 8620 9401 9333 8/27/2008 8784 9478 9420 8/28/2008 8977 9620 9524 8/29/2008 8576 9488 9313 8/30/2008 8576 9488 9313 8/31/2008 8576 9488 9313 9/1/2008 8576 9488 9313 9/2/2008 8411 9450 9224 9/3/2008 8167 9435 9091 9/4/2008 7628 9153 8791 9/5/2008 7585 9194 8767 9/6/2008 7585 9194 8767 9/7/2008 7585 9194 8767 9/8/2008 7724 9384 8847 9/9/2008 7428 9064 8678 9/10/2008 7448 9120 8690 9/11/2008 7608 9249 8783 9/12/2008 7615 9269 8788 9/13/2008 7615 9269 8788 9/14/2008 7615 9269 8788 9/15/2008 7035 8832 8455 9/16/2008 7080 8987 8482 9/17/2008 6388 8563 8070 9/18/2008 6887 8937 8380 9/19/2008 7318 9297 8642 9/20/2008 7318 9297 8642 9/21/2008 7318 9297 8642 9/22/2008 6758 8942 8314 9/23/2008 6620 8802 8232 9/24/2008 6714 8785 8290 9/25/2008 7007 8958 8473 9/26/2008 7031 8988 8489 9/27/2008 7031 8988 8489 9/28/2008 7031 8988 8489 9/29/2008 5772 8198 7729 9/30/2008 6318 8643 8100 10/1/2008 6180 8605 7952 10/2/2008 5700 8259 7647 10/3/2008 5620 8148 7594 10/4/2008 5620 8148 7594 10/5/2008 5620 8148 7594 10/6/2008 5150 7834 7282 10/7/2008 4505 7385 6861 10/8/2008 4402 7305 6770 10/9/2008 4032 6749 6494 10/10/2008 3956 6670 6437 10/11/2008 3956 6670 6437 10/12/2008 3956 6670 6437 10/13/2008 4944 7442 7234 10/14/2008 4646 7403 7015 10/15/2008 3905 6735 6467 10/16/2008 4259 7021 6759 10/17/2008 4227 6978 6735 10/18/2008 4227 6978 6735 10/19/2008 4227 6978 6735 10/20/2008 4558 7310 6994 10/21/2008 4080 7085 6626 10/22/2008 3662 6654 6289 10/23/2008 3710 6739 6331 10/24/2008 3507 6506 6158 10/25/2008 3507 6506 6158 10/26/2008 3507 6506 6158 10/27/2008 3379 6300 6048 10/28/2008 4155 6979 6743 10/29/2008 4018 6903 6630 10/30/2008 4174 7082 6762 10/31/2008 4163 7191 6755
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX 2X SELECT SECTOR TECHNOLOGY ETF............................ -58.36% TECHNOLOGY SELECT SECTOR INDEX................................... -32.01% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 22 RYDEX 2x S&P SELECT SECTOR TECHNOLOGY ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ MICROSOFT CORP. 9.01% AT&T, INC. 8.11% INTERNATIONAL BUSINESS MACHINES CORP. 6.47% CISCO SYSTEMS, INC. 5.39% APPLE, INC. 4.90% HEWLETT-PACKARD CO. 4.82% VERIZON COMMUNICATIONS, INC. 4.36% INTEL CORP. 4.12% GOOGLE, INC. -- CLASS A 3.92% ORACLE CORP. 3.70% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Computers & Peripherals 23.47 Software 19.68 Diversified Telecommunication Services 16.14 Communications Equipment 13.49 Semiconductors & Semiconductor Equipment 11.57 Internet Software & Services 7.32 IT Services 4.85 Electronic Equipment & Instruments 1.67 Wireless Telecommunication Services 1.36 Office Electronics 0.45
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. ANNUAL REPORT 23 RYDEX INVERSE 2x S&P SELECT SECTOR TECHNOLOGY ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 6/10/2008, Rydex Inverse 2x S&P Select Sector Technology ETF returned 72.79%. Over the same time period, its benchmark, the Technology Select Sector Index, returned -32.01%. For the period since its inception, the ETF achieved a daily correlation of 100% to its benchmark of -200% of the daily price movement of the Technology Select Sector Index. The technology industry suffered with the rest of the economy as expectations for global technology spending dried up in 2008. In fact, losses in the technology sector were sizable across the board. Computer and peripheral companies make up the largest component of the technology sector. Companies such as Apple (AAPL), IBM (IBM), and Dell Inc. (DELL) contributing the most to the sector's decline. Software companies such as giant Microsoft (MSFT) also contributed to a large loss in the tech sector. Also, historic volatility in the stock market in September and October led to wider daily tracking variances for the fund in September and October. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX INVERSE 2X S&P SELECT S&P TECHNOLOGY SECTOR TECHNOLOGY 500 TOTAL SELECT SECTOR ETF(A) RETURN INDEX(B) INDEX(C) ----------------- --------------- ------------- 6/10/2008 10000 10000 10000 6/11/2008 10483 9833 9757 6/12/2008 10364 9866 9813 6/13/2008 9971 10015 9999 6/14/2008 9971 10015 9999 6/15/2008 9971 10015 9999 6/16/2008 9944 10016 10013 6/17/2008 10105 9948 9932 6/18/2008 10359 9851 9808 6/19/2008 10133 9891 9916 6/20/2008 10637 9708 9670 6/21/2008 10637 9708 9670 6/22/2008 10637 9708 9670 6/23/2008 10755 9708 9617 6/24/2008 10813 9681 9591 6/25/2008 10507 9738 9729 6/26/2008 11224 9455 9396 6/27/2008 11351 9420 9345 6/28/2008 11351 9420 9345 6/29/2008 11351 9420 9345 6/30/2008 11423 9432 9316 7/1/2008 11404 9470 9324 7/2/2008 11785 9298 9168 7/3/2008 11805 9309 9164 7/4/2008 11805 9309 9164 7/5/2008 11805 9309 9164 7/6/2008 11805 9309 9164 7/7/2008 11661 9231 9222 7/8/2008 11405 9392 9311 7/9/2008 12116 9179 9023 7/10/2008 11805 9243 9140 7/11/2008 12021 9141 9059 7/12/2008 12021 9141 9059 7/13/2008 12021 9141 9059 7/14/2008 12253 9059 8974 7/15/2008 12215 8960 8989 7/16/2008 11752 9186 9163 7/17/2008 11540 9297 9246 7/18/2008 11803 9299 9142 7/19/2008 11803 9299 9142 7/20/2008 11803 9299 9142 7/21/2008 11960 9295 9081 7/22/2008 12012 9420 9063 7/23/2008 11592 9459 9220 7/24/2008 12093 9240 9021 7/25/2008 11805 9279 9131 7/26/2008 11805 9279 9131 7/27/2008 11805 9279 9131 7/28/2008 12316 9106 8934 7/29/2008 11851 9320 9104 7/30/2008 11724 9476 9153 7/31/2008 11869 9353 9097 8/1/2008 12028 9301 9037 8/2/2008 12028 9301 9037 8/3/2008 12028 9301 9037 8/4/2008 12137 9217 8995 8/5/2008 11455 9483 9246 8/6/2008 11241 9519 9330 8/7/2008 11297 9349 9307 8/8/2008 10759 9573 9530 8/9/2008 10759 9573 9530 8/10/2008 10759 9573 9530 8/11/2008 10595 9642 9604 8/12/2008 10627 9526 9590 8/13/2008 10688 9501 9563 8/14/2008 10552 9554 9623 8/15/2008 10492 9594 9653 8/16/2008 10492 9594 9653 8/17/2008 10492 9594 9653 8/18/2008 10761 9450 9529 8/19/2008 11063 9363 9393 8/20/2008 11008 9421 9416 8/21/2008 11051 9446 9399 8/22/2008 10720 9554 9542 8/23/2008 10720 9554 9542 8/24/2008 10720 9554 9542 8/25/2008 11116 9366 9365 8/26/2008 11195 9401 9333 8/27/2008 10987 9478 9420 8/28/2008 10745 9620 9524 8/29/2008 11224 9488 9313 8/30/2008 11224 9488 9313 8/31/2008 11224 9488 9313 9/1/2008 11224 9488 9313 9/2/2008 11435 9450 9224 9/3/2008 11767 9435 9091 9/4/2008 12537 9153 8791 9/5/2008 12605 9194 8767 9/6/2008 12605 9194 8767 9/7/2008 12605 9194 8767 9/8/2008 12383 9384 8847 9/9/2008 12849 9064 8678 9/10/2008 12816 9120 8690 9/11/2008 12545 9249 8783 9/12/2008 12536 9269 8788 9/13/2008 12536 9269 8788 9/14/2008 12536 9269 8788 9/15/2008 13491 8832 8455 9/16/2008 13407 8987 8482 9/17/2008 14705 8563 8070 9/18/2008 13631 8937 8380 9/19/2008 12808 9297 8642 9/20/2008 12808 9297 8642 9/21/2008 12808 9297 8642 9/22/2008 13758 8942 8314 9/23/2008 14043 8802 8232 9/24/2008 13855 8785 8290 9/25/2008 13238 8958 8473 9/26/2008 13194 8988 8489 9/27/2008 13194 8988 8489 9/28/2008 13194 8988 8489 9/29/2008 15512 8198 7729 9/30/2008 14386 8643 8100 10/1/2008 14542 8605 7952 10/2/2008 15614 8259 7647 10/3/2008 15829 8148 7594 10/4/2008 15829 8148 7594 10/5/2008 15829 8148 7594 10/6/2008 17077 7834 7282 10/7/2008 19279 7385 6861 10/8/2008 19701 7305 6770 10/9/2008 21357 6749 6494 10/10/2008 21758 6670 6437 10/11/2008 21758 6670 6437 10/12/2008 21758 6670 6437 10/13/2008 16461 7442 7234 10/14/2008 17502 7403 7015 10/15/2008 20103 6735 6467 10/16/2008 18326 7021 6759 10/17/2008 18465 6978 6735 10/18/2008 18465 6978 6735 10/19/2008 18465 6978 6735 10/20/2008 17065 7310 6994 10/21/2008 18893 7085 6626 10/22/2008 20790 6654 6289 10/23/2008 20516 6739 6331 10/24/2008 21657 6506 6158 10/25/2008 21657 6506 6158 10/26/2008 21657 6506 6158 10/27/2008 22401 6300 6048 10/28/2008 17412 6979 6743 10/29/2008 17990 6903 6630 10/30/2008 17238 7082 6762 10/31/2008 17279 7191 6755
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX INVERSE 2X S&P SELECT SECTOR TECHNOLOGY ETF................ 72.79% TECHNOLOGY SELECT SECTOR INDEX................................... -32.01% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 24 RYDEX 2x S&P SELECT SECTOR HEALTH CARE ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 6/10/2008, Rydex 2x S&P Select Sector Health Care ETF returned -29.33%. Over the same time period its benchmark, the Health Care Select Sector Index, returned -12.76%. For the period since inception, the ETF achieved a daily correlation of 100% to its benchmark of 200% of the daily price movement of the Health Care Select Sector Index. The health care sector remained relatively range-bound until the end of September 2008, as a slowing economy began to affect stocks in the sector. Pharmaceutical companies make up more than 50% of the index. Poor sales for pharmaceutical giants like Wyeth (WYE) and Eli Lilly (LLY) contributed the most to the index's poor performance. On the whole, pharmaceutical companies faced the double whammy of lower earnings due to the increased competition of generic drugs and a cut back in prescription drugs due to the general economic slowdown. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX 2X S&P SELECT S&P HEALTH SECTOR HEALTH 500 TOTAL CARE SELECT CARE ETF(A) RETURN INDEX(B) SECTOR INDEX(C) ------------- --------------- --------------- 6/10/2008 10000 10000 10000 6/11/2008 9709 9833 9855 6/12/2008 9791 9866 9897 6/13/2008 10032 10015 10021 6/14/2008 10032 10015 10021 6/15/2008 10032 10015 10021 6/16/2008 9939 10016 9975 6/17/2008 9855 9948 9934 6/18/2008 9687 9851 9849 6/19/2008 9789 9891 9902 6/20/2008 9507 9708 9761 6/21/2008 9507 9708 9761 6/22/2008 9507 9708 9761 6/23/2008 9567 9708 9792 6/24/2008 9635 9681 9828 6/25/2008 9797 9738 9910 6/26/2008 9383 9455 9702 6/27/2008 9496 9420 9759 6/28/2008 9496 9420 9759 6/29/2008 9496 9420 9759 6/30/2008 9679 9432 9855 7/1/2008 9779 9470 9904 7/2/2008 9699 9298 9859 7/3/2008 9719 9309 9872 7/4/2008 9719 9309 9872 7/5/2008 9719 9309 9872 7/6/2008 9719 9309 9872 7/7/2008 9625 9231 9825 7/8/2008 10184 9392 10111 7/9/2008 10113 9179 10076 7/10/2008 10201 9243 10121 7/11/2008 9961 9141 9999 7/12/2008 9961 9141 9999 7/13/2008 9961 9141 9999 7/14/2008 9928 9059 9983 7/15/2008 10179 8960 10109 7/16/2008 10327 9186 10183 7/17/2008 10483 9297 10260 7/18/2008 10373 9299 10208 7/19/2008 10373 9299 10208 7/20/2008 10373 9299 10208 7/21/2008 10119 9295 10083 7/22/2008 10311 9420 10179 7/23/2008 10533 9459 10290 7/24/2008 10500 9240 10274 7/25/2008 10631 9279 10339 7/26/2008 10631 9279 10339 7/27/2008 10631 9279 10339 7/28/2008 10427 9106 10240 7/29/2008 10573 9320 10313 7/30/2008 10556 9476 10304 7/31/2008 10628 9353 10340 8/1/2008 10413 9301 10237 8/2/2008 10413 9301 10237 8/3/2008 10413 9301 10237 8/4/2008 10675 9217 10366 8/5/2008 11220 9483 10630 8/6/2008 11284 9519 10645 8/7/2008 10995 9349 10508 8/8/2008 11527 9573 10762 8/9/2008 11527 9573 10762 8/10/2008 11527 9573 10762 8/11/2008 11549 9642 10770 8/12/2008 11485 9526 10741 8/13/2008 11397 9501 10697 8/14/2008 11496 9554 10743 8/15/2008 11707 9594 10843 8/16/2008 11707 9594 10843 8/17/2008 11707 9594 10843 8/18/2008 11469 9450 10734 8/19/2008 11305 9363 10657 8/20/2008 11192 9421 10604 8/21/2008 11247 9446 10631 8/22/2008 11461 9554 10725 8/23/2008 11461 9554 10725 8/24/2008 11461 9554 10725 8/25/2008 11099 9366 10555 8/26/2008 11108 9401 10560 8/27/2008 11095 9478 10554 8/28/2008 11281 9620 10643 8/29/2008 11013 9488 10518 8/30/2008 11013 9488 10518 8/31/2008 11013 9488 10518 9/1/2008 11013 9488 10518 9/2/2008 11037 9450 10530 9/3/2008 11063 9435 10537 9/4/2008 10500 9153 10270 9/5/2008 10392 9194 10219 9/6/2008 10392 9194 10219 9/7/2008 10392 9194 10219 9/8/2008 10825 9384 10429 9/9/2008 10457 9064 10253 9/10/2008 10491 9120 10270 9/11/2008 10776 9249 10409 9/12/2008 10728 9269 10387 9/13/2008 10728 9269 10387 9/14/2008 10728 9269 10387 9/15/2008 10300 8832 10181 9/16/2008 10324 8987 10193 9/17/2008 9639 8563 9857 9/18/2008 10047 8937 10063 9/19/2008 10162 9297 10123 9/20/2008 10162 9297 10123 9/21/2008 10162 9297 10123 9/22/2008 9647 8942 9867 9/23/2008 9552 8802 9820 9/24/2008 9658 8785 9874 9/25/2008 9967 8958 10033 9/26/2008 10036 8988 10070 9/27/2008 10036 8988 10070 9/28/2008 10036 8988 10070 9/29/2008 8866 8198 9484 9/30/2008 9576 8643 9846 10/1/2008 9578 8605 9841 10/2/2008 9275 8259 9686 10/3/2008 9152 8148 9625 10/4/2008 9152 8148 9625 10/5/2008 9152 8148 9625 10/6/2008 8296 7834 9176 10/7/2008 7705 7385 8856 10/8/2008 7503 7305 8742 10/9/2008 6416 6749 8119 10/10/2008 5980 6670 7848 10/11/2008 5980 6670 7848 10/12/2008 5980 6670 7848 10/13/2008 7486 7442 8826 10/14/2008 7475 7403 8821 10/15/2008 6455 6735 8224 10/16/2008 6937 7021 8527 10/17/2008 6941 6978 8532 10/18/2008 6941 6978 8532 10/19/2008 6941 6978 8532 10/20/2008 7509 7310 8878 10/21/2008 7281 7085 8744 10/22/2008 6582 6654 8326 10/23/2008 6788 6739 8456 10/24/2008 6426 6506 8232 10/25/2008 6426 6506 8232 10/26/2008 6426 6506 8232 10/27/2008 5994 6300 7960 10/28/2008 6905 6979 8561 10/29/2008 6588 6903 8363 10/30/2008 6888 7082 8557 10/31/2008 7067 7191 8670
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX 2X SELECT SECTOR HEALTH CARE ETF........................... -29.33% HEALTH CARE SELECT SECTOR INDEX.................................. -12.76% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. ANNUAL REPORT 25 RYDEX 2x SELECT SECTOR HEALTH CARE ETF PORTFOLIO SUMMARY (Unaudited) As of October 31, 2008 -------------------------------------------------------------------------------- TOP 10 HOLDINGS* --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS ------------------------------------------------------------------------------------ JOHNSON & JOHNSON 12.05% PFIZER, INC. 8.39% ABBOTT LABORATORIES 5.06% MERCK & CO., INC. 4.66% AMGEN, INC. 4.45% MEDTRONIC, INC. 3.21% WYETH 3.03% GILEAD SCIENCES, INC. 2.97% BRISTOL-MYERS SQUIBB CO. 2.87% BAXTER INTERNATIONAL, INC. 2.71% ------------------------------------------------------------------------------------
INDUSTRY ALLOCATIONS* (PIE CHART) Pharmaceuticals 49.98 Health Care Equipment & Supplies 16.56 Biotechnology 13.83 Health Care Providers & Services 13.46 Road & Rail 3.27 Life Sciences Tools & Services 2.67 Health Care Technology 0.23
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and the Industry Allocations are expressed as a percentage of the Fund's equity investments market value. These percentages may change over time. ANNUAL REPORT 26 RYDEX INVERSE 2x S&P SELECT SECTOR HEALTH CARE ETF MANAGER'S ANALYSIS (Unaudited) -------------------------------------------------------------------------------- Since its inception on 6/10/2008, Rydex Inverse 2x S&P Select Sector Health Care ETF returned 12.04%. Over the same time period, its benchmark, the Health Care Select Sector Index, returned -12.76%. For the period since inception, Rydex Inverse 2x S&P Select Sector Health Care ETF achieved a daily correlation of 100% to its benchmark of -200% of the daily price movement of the Health Care Select Sector Index. The health care sector remained relatively range-bound until the end of September 2008, as a slowing economy began to affect stocks in the sector. Pharmaceutical companies make up more than 50% of the index. Poor sales for pharmaceutical giants like Wyeth (WYE) and Eli Lilly (LLY) contributed the most to the index's poor performance. On the whole, pharmaceutical companies faced the double whammy of lower earnings due to the increased competition of generic drugs and a cut back in prescription drugs due to the general economic slowdown. The year ending October 31, 2008 was marked by the stunning failure of the financial markets, brought on by the implosion of housing-backed debt markets, a growing global economic meltdown, and unprecedented volatility in the stock market. The Volatility Index(R) (VIX) jumped to historic highs in September and October as the economic crisis culminated in historic government intervention. On September 19, 2008, the Securities and Exchange Commission (SEC) temporarily banned short selling of financial stocks, which had a ripple effect on the derivatives and futures markets. This increased volatility contributed to the wider daily tracking variances seen in the ETF in September and October. The apparent discrepancy between the leverage and unleveraged indices is the result of compounding, which is described briefly on page 4 of this report. CUMULATIVE FUND PERFORMANCE: JUNE 10, 2008 - OCTOBER 31, 2008 (Performance Graph)
RYDEX INVERSE 2X S&P SELECT SECTOR S&P HEALTH HEALTH CARE 500 TOTAL CARE SELECT ETF(A) RETURN INDEX(B) SECTOR INDEX(C) ------------- --------------- --------------- 6/10/2008 10000 10000 10000 6/11/2008 10288 9833 9855 6/12/2008 10203 9866 9897 6/13/2008 9949 10015 10021 6/14/2008 9949 10015 10021 6/15/2008 9949 10015 10021 6/16/2008 10043 10016 9975 6/17/2008 10128 9948 9934 6/18/2008 10301 9851 9849 6/19/2008 10193 9891 9902 6/20/2008 10484 9708 9761 6/21/2008 10484 9708 9761 6/22/2008 10484 9708 9761 6/23/2008 10420 9708 9792 6/24/2008 10345 9681 9828 6/25/2008 10175 9738 9910 6/26/2008 10604 9455 9702 6/27/2008 10479 9420 9759 6/28/2008 10479 9420 9759 6/29/2008 10479 9420 9759 6/30/2008 10281 9432 9855 7/1/2008 10177 9470 9904 7/2/2008 10261 9298 9859 7/3/2008 10243 9309 9872 7/4/2008 10243 9309 9872 7/5/2008 10243 9309 9872 7/6/2008 10243 9309 9872 7/7/2008 10341 9231 9825 7/8/2008 9751 9392 10111 7/9/2008 9819 9179 10076 7/10/2008 9735 9243 10121 7/11/2008 9967 9141 9999 7/12/2008 9967 9141 9999 7/13/2008 9967 9141 9999 7/14/2008 10001 9059 9983 7/15/2008 9753 8960 10109 7/16/2008 9615 9186 10183 7/17/2008 9471 9297 10260 7/18/2008 9571 9299 10208 7/19/2008 9571 9299 10208 7/20/2008 9571 9299 10208 7/21/2008 9805 9295 10083 7/22/2008 9621 9420 10179 7/23/2008 9412 9459 10290 7/24/2008 9443 9240 10274 7/25/2008 9327 9279 10339 7/26/2008 9327 9279 10339 7/27/2008 9327 9279 10339 7/28/2008 9507 9106 10240 7/29/2008 9375 9320 10313 7/30/2008 9389 9476 10304 7/31/2008 9327 9353 10340 8/1/2008 9512 9301 10237 8/2/2008 9512 9301 10237 8/3/2008 9512 9301 10237 8/4/2008 9279 9217 10366 8/5/2008 8812 9483 10630 8/6/2008 8760 9519 10645 8/7/2008 8984 9349 10508 8/8/2008 8556 9573 10762 8/9/2008 8556 9573 10762 8/10/2008 8556 9573 10762 8/11/2008 8539 9642 10770 8/12/2008 8587 9526 10741 8/13/2008 8653 9501 10697 8/14/2008 8579 9554 10743 8/15/2008 8424 9594 10843 8/16/2008 8424 9594 10843 8/17/2008 8424 9594 10843 8/18/2008 8593 9450 10734 8/19/2008 8717 9363 10657 8/20/2008 8804 9421 10604 8/21/2008 8760 9446 10631 8/22/2008 8596 9554 10725 8/23/2008 8596 9554 10725 8/24/2008 8596 9554 10725 8/25/2008 8867 9366 10555 8/26/2008 8860 9401 10560 8/27/2008 8872 9478 10554 8/28/2008 8724 9620 10643 8/29/2008 8932 9488 10518 8/30/2008 8932 9488 10518 8/31/2008 8932 9488 10518 9/1/2008 8932 9488 10518 9/2/2008 8915 9450 10530 9/3/2008 8893 9435 10537 9/4/2008 9340 9153 10270 9/5/2008 9435 9194 10219 9/6/2008 9435 9194 10219 9/7/2008 9435 9194 10219 9/8/2008 9052 9384 10429 9/9/2008 9356 9064 10253 9/10/2008 9327 9120 10270 9/11/2008 9077 9249 10409 9/12/2008 9120 9269 10387 9/13/2008 9120 9269 10387 9/14/2008 9120 9269 10387 9/15/2008 9483 8832 10181 9/16/2008 9461 8987 10193 9/17/2008 10080 8563 9857 9/18/2008 9675 8937 10063 9/19/2008 9566 9297 10123 9/20/2008 9566 9297 10123 9/21/2008 9566 9297 10123 9/22/2008 10046 8942 9867 9/23/2008 10157 8802 9820 9/24/2008 10049 8785 9874 9/25/2008 9728 8958 10033 9/26/2008 9662 8988 10070 9/27/2008 9662 8988 10070 9/28/2008 9662 8988 10070 9/29/2008 10769 8198 9484 9/30/2008 10036 8643 9846 10/1/2008 10042 8605 9841 10/2/2008 10352 8259 9686 10/3/2008 10486 8148 9625 10/4/2008 10486 8148 9625 10/5/2008 10486 8148 9625 10/6/2008 11447 7834 9176 10/7/2008 12225 7385 8856 10/8/2008 12546 7305 8742 10/9/2008 14337 6749 8119 10/10/2008 15257 6670 7848 10/11/2008 15257 6670 7848 10/12/2008 15257 6670 7848 10/13/2008 11451 7442 8826 10/14/2008 11481 7403 8821 10/15/2008 13003 6735 8224 10/16/2008 12041 7021 8527 10/17/2008 12031 6978 8532 10/18/2008 12031 6978 8532 10/19/2008 12031 6978 8532 10/20/2008 11050 7310 8878 10/21/2008 11395 7085 8744 10/22/2008 12492 6654 8326 10/23/2008 12099 6739 8456 10/24/2008 12758 6506 8232 10/25/2008 12758 6506 8232 10/26/2008 12758 6506 8232 10/27/2008 13580 6300 7960 10/28/2008 11557 6979 8561 10/29/2008 12103 6903 8363 10/30/2008 11521 7082 8557 10/31/2008 11204 7191 8670
Data Points for the line graph do not reflect the reinvestment of dividends on securities in the index. TOTAL RETURNS FOR THE PERIOD ENDED OCTOBER 31, 2008 --------------------------------------------------------------------------------
SINCE INCEPTION (06/10/2008) --------------- RYDEX INVERSE 2X S&P SELECT SECTOR HEALTH CARE ETF............... 12.04% HEALTH CARE SELECT SECTOR INDEX.................................. -12.76% S&P 500 TOTAL RETURN INDEX....................................... -28.09%
The returns presented above do not reflect the effect of taxes. Index returns represent total returns. Past performance is no guarantee of future results. See Notes to Financial Statements. ANNUAL REPORT 27 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS 82.7% AEROSPACE & DEFENSE 2.3% Boeing Co. ................................ 8,170 $427,046 General Dynamics Corp. .................... 4,390 264,805 Goodrich Corp. ............................ 1,380 50,453 Honeywell International, Inc. ............. 8,220 250,299 L-3 Communications Holdings, Inc. ......... 1,340 108,768 Lockheed Martin Corp. ..................... 3,680 312,984 Northrop Grumman Corp. .................... 3,730 174,899 Precision Castparts Corp. ................. 1,540 99,807 Raytheon Co. .............................. 4,600 235,106 Rockwell Collins, Inc. .................... 1,760 65,525 United Technologies Corp. ................. 10,650 585,324 ---------- TOTAL AEROSPACE & DEFENSE 2,575,016 ---------- AIR FREIGHT & LOGISTICS 0.9% C.H. Robinson Worldwide, Inc. ............. 1,880 97,346 Expeditors International of Washington, Inc. ................................... 2,350 76,728 FedEx Corp. ............................... 3,440 224,873 United Parcel Service, Inc. -- Class B..... 11,130 587,441 ---------- TOTAL AIR FREIGHT & LOGISTICS 986,388 ---------- AIRLINES 0.1% Southwest Airlines Co. .................... 8,100 95,418 ---------- TOTAL AIRLINES 95,418 ---------- AUTO COMPONENTS 0.1% Goodyear Tire & Rubber Co.(The)*........... 2,660 23,727 Johnson Controls, Inc. .................... 6,560 116,309 ---------- TOTAL AUTO COMPONENTS 140,036 ---------- AUTOMOBILES 0.1% Ford Motor Co.*............................ 24,970 54,684 General Motors Corp. ...................... 6,250 36,125 Harley-Davidson, Inc. ..................... 2,600 63,648 ---------- TOTAL AUTOMOBILES 154,457 ---------- BEVERAGES 2.4% Anheuser-Busch Cos., Inc. ................. 7,940 492,518 Brown-Forman Corp. -- Class B.............. 1,080 49,032 Coca-Cola Co.(The)......................... 21,950 967,117 Coca-Cola Enterprises, Inc. ............... 3,500 35,175 Constellation Brands, Inc. -- Class A*..... 2,140 26,836 Dr Pepper Snapple Group, Inc.*............. 2,800 64,120 Molson Coors Brewing Co. -- Class B........ 1,660 62,017 Pepsi Bottling Group, Inc. ................ 1,510 34,911 PepsiCo, Inc. ............................. 17,290 985,703 ---------- TOTAL BEVERAGES 2,717,429 ---------- BIOTECHNOLOGY 1.6% Amgen, Inc.*............................... 11,680 699,515 Biogen Idec, Inc.*......................... 3,210 136,586 Celgene Corp.*............................. 5,020 322,585 Genzyme Corp.*............................. 2,970 216,454 Gilead Sciences, Inc.*..................... 10,160 465,836 ---------- TOTAL BIOTECHNOLOGY 1,840,976 ---------- BUILDING PRODUCTS 0.0%(A) Masco Corp. ............................... 3,980 40,397 ---------- TOTAL BUILDING PRODUCTS 40,397 ---------- CAPITAL MARKETS 2.1% American Capital, Ltd. .................... 2,290 32,175 Ameriprise Financial, Inc. ................ 2,400 51,840 Bank of New York Mellon Corp. ............. 12,660 412,716 Charles Schwab Corp.(The).................. 10,300 196,936 E*TRADE Financial Corp.*................... 5,930 10,793 Federated Investors, Inc. -- Class B....... 970 23,474 Franklin Resources, Inc. .................. 1,680 114,240 Goldman Sachs Group, Inc.(The)............. 4,800 444,000 Invesco Ltd. .............................. 4,270 63,666 Janus Capital Group, Inc. ................. 1,760 20,662 Legg Mason, Inc. .......................... 1,570 34,838 Merrill Lynch & Co., Inc. ................. 16,910 314,357 Morgan Stanley............................. 12,250 214,007 Northern Trust Corp. ...................... 2,440 137,396 State Street Corp. ........................ 4,770 206,780 T. Rowe Price Group, Inc. ................. 2,860 113,084 ---------- TOTAL CAPITAL MARKETS 2,390,964 ---------- CHEMICALS 1.7% Air Products & Chemicals, Inc. ............ 2,340 136,024 Ashland, Inc. ............................. 630 14,232 CF Industries Holdings, Inc. .............. 620 39,798 Dow Chemical Co.(The)...................... 10,210 272,301 Du Pont (E.I.) de Nemours & Co. ........... 9,960 318,720 Eastman Chemical Co. ...................... 840 33,928 Ecolab, Inc. .............................. 1,940 72,284 Hercules, Inc. ............................ 1,240 20,844 International Flavors & Fragrances, Inc. .. 870 27,736 Monsanto Co. .............................. 6,070 540,109 PPG Industries, Inc. ...................... 1,810 89,740 Praxair, Inc. ............................. 3,480 226,722 Rohm & Haas Co. ........................... 1,370 96,379 Sigma-Aldrich Corp. ....................... 1,390 60,965 ---------- TOTAL CHEMICALS 1,949,782 ---------- COMMERCIAL BANKS 2.8% BB&T Corp. ................................ 6,070 217,610 Comerica, Inc. ............................ 1,660 45,799 Fifth Third Bancorp........................ 6,380 69,223 First Horizon National Corp. .............. 2,230 26,559 Huntington Bancshares, Inc. ............... 4,040 38,178 KeyCorp.................................... 5,460 66,776 M&T Bank Corp. ............................ 850 68,935 Marshall & Ilsley Corp. ................... 2,870 51,746 National City Corp. ....................... 23,110 62,397 PNC Financial Services Group, Inc. ........ 3,830 255,346 Regions Financial Corp. ................... 7,670 85,060
See Notes to Financial Statements. ANNUAL REPORT 28 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) SunTrust Banks, Inc. ...................... 3,910 $156,947 U.S. Bancorp............................... 19,240 573,545 Wachovia Corp. ............................ 23,840 152,814 Wells Fargo & Co. ......................... 36,540 1,244,187 Zions Bancorp.............................. 1,270 48,400 ---------- TOTAL COMMERCIAL BANKS 3,163,522 ---------- COMMERCIAL SERVICES & SUPPLIES 0.4% Allied Waste Industries, Inc.*............. 3,740 38,971 Avery Dennison Corp. ...................... 1,180 41,324 Cintas Corp. .............................. 1,460 34,602 Equifax, Inc. ............................. 1,420 37,034 Monster Worldwide, Inc.*................... 1,370 19,509 Pitney Bowes, Inc. ........................ 2,290 56,746 R.R. Donnelley & Sons Co. ................. 2,320 38,442 Robert Half International, Inc. ........... 1,720 32,456 Waste Management, Inc. .................... 5,420 169,266 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 468,350 ---------- COMMUNICATIONS EQUIPMENT 2.1% Ciena Corp.*............................... 1,000 9,610 Cisco Systems, Inc.*....................... 65,230 1,159,137 Corning, Inc. ............................. 17,430 188,767 Harris Corp. .............................. 1,480 53,206 JDS Uniphase Corp.*........................ 2,370 12,940 Juniper Networks, Inc.*.................... 6,000 112,440 Motorola, Inc. ............................ 25,020 134,357 QUALCOMM, Inc. ............................ 18,120 693,271 Tellabs, Inc.*............................. 4,390 18,614 ---------- TOTAL COMMUNICATIONS EQUIPMENT 2,382,342 ---------- COMPUTERS & PERIPHERALS 3.7% Apple, Inc.*............................... 9,780 1,052,230 Dell, Inc.*................................ 19,250 233,888 EMC Corp.*................................. 22,870 269,409 Hewlett-Packard Co. ....................... 27,050 1,035,474 International Business Machines Corp. ..... 14,960 1,390,831 Lexmark International, Inc. -- Class A*.... 970 25,055 NetApp, Inc.*.............................. 3,620 48,979 QLogic Corp.*.............................. 1,450 17,429 SanDisk Corp.*............................. 2,480 22,047 Sun Microsystems, Inc.*.................... 8,320 38,272 Teradata Corp.*............................ 1,970 30,318 ---------- TOTAL COMPUTERS & PERIPHERALS 4,163,932 ---------- CONSTRUCTION & ENGINEERING 0.1% Fluor Corp. ............................... 1,980 79,061 Jacobs Engineering Group, Inc.*............ 1,350 49,181 ---------- TOTAL CONSTRUCTION & ENGINEERING 128,242 ---------- CONSTRUCTION MATERIALS 0.1% Vulcan Materials Co. ...................... 1,210 65,679 ---------- TOTAL CONSTRUCTION MATERIALS 65,679 ---------- CONSUMER FINANCE 0.6% American Express Co. ...................... 12,800 352,000 Capital One Financial Corp. ............... 4,150 162,348 Discover Financial Services................ 5,290 64,803 SLM Corp.*................................. 5,160 55,057 ---------- TOTAL CONSUMER FINANCE 634,208 ---------- CONTAINERS & PACKAGING 0.1% Ball Corp. ................................ 1,070 36,594 Bemis Co., Inc. ........................... 1,100 27,324 Pactiv Corp.*.............................. 1,450 34,162 Sealed Air Corp. .......................... 1,750 29,610 ---------- TOTAL CONTAINERS & PACKAGING 127,690 ---------- DISTRIBUTORS 0.1% Genuine Parts Co. ......................... 1,790 70,437 ---------- TOTAL DISTRIBUTORS 70,437 ---------- DIVERSIFIED CONSUMER SERVICES 0.1% Apollo Group, Inc. -- Class A*............. 1,170 81,327 H&R Block, Inc. ........................... 3,620 71,386 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 152,713 ---------- DIVERSIFIED FINANCIAL SERVICES 3.9% Bank of America Corp. ..................... 55,380 1,338,535 CIT Group, Inc. ........................... 3,150 13,041 Citigroup, Inc. ........................... 60,130 820,774 CME Group, Inc. ........................... 740 208,791 IntercontinentalExchange, Inc.*............ 830 71,015 JPMorgan Chase & Co. ...................... 40,680 1,678,050 Leucadia National Corp. ................... 1,950 52,338 Moody's Corp. ............................. 2,180 55,808 Nasdaq OMX Group (The)*.................... 1,500 48,690 NYSE Euronext.............................. 2,940 88,729 ---------- TOTAL DIVERSIFIED FINANCIAL SERVICES 4,375,771 ---------- DIVERSIFIED TELECOMMUNICATION SERVICES 2.5% AT&T, Inc. ................................ 65,080 1,742,192 CenturyTel, Inc. .......................... 1,130 28,374 Embarq Corp. .............................. 1,570 47,100 Frontier Communications Corp. ............. 3,490 26,559 Qwest Communications International, Inc. .. 16,390 46,875 Verizon Communications, Inc. .............. 31,450 933,121 Windstream Corp. .......................... 4,850 36,424 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 2,860,645 ---------- ELECTRIC UTILITIES 1.9% Allegheny Energy, Inc. .................... 1,860 56,079 American Electric Power Co., Inc. ......... 4,440 144,877 Duke Energy Corp. ......................... 13,970 228,829 Edison International....................... 3,600 128,124 Entergy Corp. ............................. 2,120 165,466 Exelon Corp. .............................. 7,260 393,782 FirstEnergy Corp. ......................... 3,370 175,779 FPL Group, Inc. ........................... 4,510 213,052 Pepco Holdings, Inc. ...................... 2,230 46,050
See Notes to Financial Statements. ANNUAL REPORT 29 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Pinnacle West Capital Corp. ............... 1,110 $35,132 PPL Corp. ................................. 4,140 135,875 Progress Energy, Inc. ..................... 2,890 113,779 Southern Co. .............................. 8,510 292,233 ---------- TOTAL ELECTRIC UTILITIES 2,129,057 ---------- ELECTRICAL EQUIPMENT 0.3% Cooper Industries, Ltd. -- Class A......... 1,920 59,424 Emerson Electric Co. ...................... 8,570 280,496 Rockwell Automation, Inc. ................. 1,610 44,549 ---------- TOTAL ELECTRICAL EQUIPMENT 384,469 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3% Agilent Technologies, Inc.*................ 3,950 87,650 Amphenol Corp. -- Class A.................. 1,950 55,868 Jabil Circuit, Inc. ....................... 2,320 19,511 Molex, Inc. ............................... 1,580 22,768 Tyco Electronics, Ltd. .................... 5,220 101,477 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 287,274 ---------- ENERGY EQUIPMENT & SERVICES 1.7% Baker Hughes, Inc. ........................ 3,400 118,830 BJ Services Co. ........................... 3,250 41,762 Cameron International Corp.*............... 2,400 58,224 ENSCO International, Inc. ................. 1,580 60,056 Halliburton Co. ........................... 9,680 191,567 Nabors Industries, Ltd.*................... 3,090 44,434 National-Oilwell Varco, Inc.*.............. 4,610 137,793 Noble Corp. ............................... 2,970 95,664 Rowan Cos., Inc. .......................... 1,250 22,675 Schlumberger, Ltd. ........................ 13,250 684,362 Smith International, Inc. ................. 2,390 82,407 Transocean, Inc.*.......................... 3,520 289,802 Weatherford International, Ltd.*........... 7,520 126,938 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 1,954,514 ---------- FOOD & STAPLES RETAILING 2.6% Costco Wholesale Corp. .................... 4,800 273,648 CVS Caremark Corp. ........................ 15,850 485,802 Kroger Co.(The)............................ 7,230 198,536 Safeway, Inc. ............................. 4,810 102,309 SUPERVALU, Inc. ........................... 2,350 33,464 Sysco Corp. ............................... 6,650 174,230 Wal-Mart Stores, Inc. ..................... 24,760 1,381,855 Walgreen Co. .............................. 10,930 278,278 Whole Foods Market, Inc. .................. 1,550 16,616 ---------- TOTAL FOOD & STAPLES RETAILING 2,944,738 ---------- FOOD PRODUCTS 1.4% Archer-Daniels-Midland Co. ................ 7,110 147,390 Campbell Soup Co. ......................... 2,340 88,803 ConAgra Foods, Inc. ....................... 5,000 87,100 Dean Foods Co.*............................ 1,680 36,725 General Mills, Inc. ....................... 3,710 251,316 H.J. Heinz Co. ............................ 3,450 151,179 Hershey Co.(The)........................... 1,830 68,149 Kellogg Co. ............................... 2,770 139,663 Kraft Foods, Inc. -- Class A............... 16,760 488,387 McCormick & Co., Inc. ..................... 1,420 47,797 Sara Lee Corp. ............................ 7,800 87,204 Tyson Foods, Inc. -- Class A............... 3,310 28,929 ---------- TOTAL FOOD PRODUCTS 1,622,642 ---------- GAS UTILITIES 0.1% Nicor, Inc. ............................... 500 23,105 Questar Corp. ............................. 1,910 65,819 ---------- TOTAL GAS UTILITIES 88,924 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 1.9% Baxter International, Inc. ................ 6,930 419,196 Becton, Dickinson & Co. ................... 2,690 186,686 Boston Scientific Corp.*................... 16,570 149,627 C.R. Bard, Inc. ........................... 1,100 97,075 Covidien, Ltd. ............................ 5,540 245,366 Hospira, Inc.*............................. 1,760 48,963 Intuitive Surgical, Inc.*.................. 430 74,300 Medtronic, Inc. ........................... 12,460 502,512 St Jude Medical, Inc.*..................... 3,770 143,373 Stryker Corp. ............................. 2,730 145,946 Varian Medical Systems, Inc.*.............. 1,380 62,804 Zimmer Holdings, Inc.*..................... 2,490 115,611 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,191,459 ---------- HEALTH CARE PROVIDERS & SERVICES 1.6% Aetna, Inc. ............................... 5,210 129,573 AmerisourceBergen Corp. ................... 1,750 54,723 Cardinal Health, Inc. ..................... 3,970 151,654 CIGNA Corp. ............................... 3,040 49,552 Coventry Health Care, Inc.*................ 1,640 21,632 DaVita, Inc.*.............................. 1,150 65,263 Express Scripts, Inc.*..................... 2,720 164,859 Humana, Inc.*.............................. 1,870 55,333 Laboratory Corp. of America Holdings*...... 1,230 75,633 McKesson Corp. ............................ 3,050 112,210 Medco Health Solutions, Inc.*.............. 5,580 211,761 Patterson Cos., Inc.*...................... 1,010 25,583 Quest Diagnostics, Inc. ................... 1,750 81,900 Tenet Healthcare Corp.*.................... 4,580 20,060 UnitedHealth Group, Inc. .................. 13,450 319,168 WellPoint, Inc.*........................... 5,650 219,615 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 1,758,519 ---------- HEALTH CARE TECHNOLOGY 0.0%(A) IMS Health, Inc. .......................... 2,010 28,823 ---------- TOTAL HEALTH CARE TECHNOLOGY 28,823 ---------- HOTELS, RESTAURANTS & LEISURE 1.2% Carnival Corp. ............................ 4,830 122,682 Darden Restaurants, Inc. .................. 1,550 34,364 International Game Technology.............. 3,420 47,880 Marriott International, Inc. -- Class A.... 3,260 68,036
See Notes to Financial Statements. ANNUAL REPORT 30 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) McDonald's Corp. .......................... 12,420 $719,491 Starbucks Corp.*........................... 8,070 105,959 Starwood Hotels & Resorts Worldwide, Inc. ................................... 2,060 46,432 Wyndham Worldwide Corp. ................... 1,960 16,052 Yum! Brands, Inc. ......................... 5,180 150,272 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 1,311,168 ---------- HOUSEHOLD DURABLES 0.3% Black & Decker Corp. ...................... 660 33,409 Centex Corp. .............................. 1,360 16,660 D.R. Horton, Inc. ......................... 3,040 22,435 Fortune Brands, Inc. ...................... 1,660 63,312 Harman International Industries, Inc. ..... 650 11,941 KB HOME.................................... 830 13,853 Leggett & Platt, Inc. ..................... 1,780 30,901 Lennar Corp. -- Class A.................... 1,560 12,074 Newell Rubbermaid, Inc. ................... 3,060 42,075 Pulte Homes, Inc. ......................... 2,360 26,290 Snap-on, Inc. ............................. 630 23,279 Stanley Works(The)......................... 870 28,484 Whirlpool Corp. ........................... 820 38,253 ---------- TOTAL HOUSEHOLD DURABLES 362,966 ---------- HOUSEHOLD PRODUCTS 2.6% Clorox Co. ................................ 1,520 92,431 Colgate-Palmolive Co. ..................... 5,580 350,201 Kimberly-Clark Corp. ...................... 4,590 281,321 Procter & Gamble Co. ...................... 33,510 2,162,735 ---------- TOTAL HOUSEHOLD PRODUCTS 2,886,688 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.1% AES Corp.(The)*............................ 7,430 59,217 Constellation Energy Group, Inc. .......... 1,970 47,694 Dynegy, Inc. -- Class A*................... 5,580 20,311 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 127,222 ---------- INDUSTRIAL CONGLOMERATES 2.6% 3M Co. .................................... 7,720 496,396 General Electric Co. ...................... 115,910 2,261,404 Textron, Inc. ............................. 2,740 48,498 Tyco International, Ltd. .................. 5,240 132,467 ---------- TOTAL INDUSTRIAL CONGLOMERATES 2,938,765 ---------- INSURANCE 2.0% AFLAC, Inc. ............................... 5,260 232,913 Allstate Corp. ............................ 5,980 157,812 American International Group, Inc. ........ 29,690 56,708 Aon Corp. ................................. 3,070 129,861 Assurant, Inc. ............................ 1,310 33,379 Chubb Corp. ............................... 3,980 206,244 Cincinnati Financial Corp. ................ 1,790 46,522 Genworth Financial, Inc. -- Class A........ 4,780 23,135 Hartford Financial Services Group, Inc. ... 3,330 34,366 Lincoln National Corp. .................... 2,840 48,962 Loews Corp. ............................... 4,000 132,840 Marsh & McLennan Cos., Inc. ............... 5,660 165,951 MBIA, Inc. ................................ 2,160 21,233 MetLife, Inc. ............................. 8,410 279,380 Principal Financial Group, Inc. ........... 2,860 54,311 Progressive Corp. ......................... 7,460 106,454 Prudential Financial, Inc. ................ 4,720 141,600 Torchmark Corp. ........................... 960 40,099 Travelers Cos., Inc.(The).................. 6,520 277,426 Unum Group................................. 3,820 60,165 XL Capital, Ltd. -- Class A................ 3,450 33,465 ---------- TOTAL INSURANCE 2,282,826 ---------- INTERNET & CATALOG RETAIL 0.2% Amazon.com, Inc.*.......................... 3,530 202,057 Expedia, Inc.*............................. 2,310 21,968 ---------- TOTAL INTERNET & CATALOG RETAIL 224,025 ---------- INTERNET SOFTWARE & SERVICES 1.2% Akamai Technologies, Inc.*................. 1,870 26,891 eBay, Inc.*................................ 12,060 184,156 Google, Inc. -- Class A*................... 2,640 948,710 VeriSign, Inc.*............................ 2,130 45,156 Yahoo!, Inc.*.............................. 15,300 196,146 ---------- TOTAL INTERNET SOFTWARE & SERVICES 1,401,059 ---------- IT SERVICES 0.7% Affiliated Computer Services, Inc. -- Class A*...................................... 1,070 43,870 Automatic Data Processing, Inc. ........... 5,620 196,419 Cognizant Technology Solutions Corp. -- Class A*....................... 3,220 61,824 Computer Sciences Corp.*................... 1,670 50,367 Convergys Corp.*........................... 1,350 10,382 Fidelity National Information Services, Inc. ................................... 2,100 31,689 Fiserv, Inc.*.............................. 1,810 60,382 Mastercard, Inc. -- Class A................ 800 118,256 Paychex, Inc. ............................. 3,540 101,032 Total System Services, Inc. ............... 2,180 29,953 Unisys Corp.*.............................. 3,970 6,034 Western Union Co. ......................... 8,050 122,843 ---------- TOTAL IT SERVICES 833,051 ---------- LEISURE EQUIPMENT & PRODUCTS 0.1% Eastman Kodak Co. ......................... 3,180 29,192 Hasbro, Inc. .............................. 1,390 40,407 Mattel, Inc. .............................. 3,980 59,780 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 129,379 ---------- LIFE SCIENCES TOOLS & SERVICES 0.3% Applied Biosystems Inc. ................... 1,870 57,652 Millipore Corp.*........................... 610 31,653 PerkinElmer, Inc. ......................... 1,320 23,681 Thermo Fisher Scientific Inc.*............. 4,630 187,978 Waters Corp.*.............................. 1,090 47,742 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 348,706 ----------
See Notes to Financial Statements. ANNUAL REPORT 31 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) MACHINERY 1.2% Caterpillar, Inc. ......................... 6,720 $256,502 Cummins, Inc. ............................. 2,240 57,904 Danaher Corp. ............................. 2,820 167,057 Deere & Co. ............................... 4,720 182,003 Dover Corp. ............................... 2,070 65,764 Eaton Corp. ............................... 1,840 82,064 Flowserve Corp. ........................... 630 35,860 Illinois Tool Works, Inc. ................. 4,420 147,584 Ingersoll-Rand Co., Ltd. -- Class A........ 3,520 64,944 ITT Corp. ................................. 2,010 89,445 Manitowoc Co., Inc. ....................... 1,440 14,170 PACCAR, Inc. .............................. 4,010 117,252 Pall Corp. ................................ 1,320 34,861 Parker-Hannifin Corp. ..................... 1,850 71,725 Terex Corp.*............................... 1,070 17,858 ---------- TOTAL MACHINERY 1,404,993 ---------- MEDIA 2.1% CBS Corp. -- Class B....................... 7,510 72,922 Comcast Corp. -- Class A................... 32,230 507,945 DIRECTV Group, Inc.(The)*.................. 6,370 139,439 Gannett Co., Inc. ......................... 2,520 27,720 Interpublic Group of Cos., Inc.*........... 5,260 27,299 McGraw-Hill Cos., Inc. .................... 3,510 94,209 Meredith Corp. ............................ 400 7,748 New York Times Co. -- Class A.............. 1,290 12,900 News Corp. -- Class A...................... 25,350 269,724 Omnicom Group, Inc. ....................... 3,520 103,981 Scripps Networks Interactive -- Class A.... 990 28,116 Time Warner, Inc. ......................... 39,570 399,261 Viacom, Inc. -- Class B*................... 6,860 138,709 Walt Disney Co.(The)....................... 20,720 536,648 Washington Post Co. -- Class B............. 70 29,876 ---------- TOTAL MEDIA 2,396,497 ---------- METALS & MINING 0.5% AK Steel Holding Corp. .................... 1,240 17,261 Alcoa, Inc. ............................... 8,980 103,360 Allegheny Technologies, Inc. .............. 1,110 29,459 Freeport-McMoRan Copper & Gold, Inc. ...... 4,240 123,384 Newmont Mining Corp. ...................... 5,040 132,754 Nucor Corp. ............................... 3,500 141,785 Titanium Metals Corp. ..................... 940 8,751 United States Steel Corp. ................. 1,300 47,944 ---------- TOTAL METALS & MINING 604,698 ---------- MULTI-UTILITIES 1.1% Ameren Corp. .............................. 2,320 75,284 CenterPoint Energy, Inc. .................. 3,770 43,430 CMS Energy Corp. .......................... 2,490 25,523 Consolidated Edison, Inc. ................. 3,020 130,826 Dominion Resources, Inc. .................. 6,400 232,192 DTE Energy Co. ............................ 1,800 63,540 Integrys Energy Group, Inc. ............... 840 40,043 NiSource, Inc. ............................ 3,030 39,269 PG&E Corp. ................................ 3,960 145,213 Public Service Enterprise Group, Inc. ..... 5,620 158,203 Sempra Energy.............................. 2,720 115,845 TECO Energy, Inc. ......................... 2,350 27,119 Wisconsin Energy Corp. .................... 1,290 56,115 Xcel Energy, Inc. ......................... 4,930 85,881 ---------- TOTAL MULTI-UTILITIES 1,238,483 ---------- MULTILINE RETAIL 0.6% Big Lots, Inc.*............................ 910 22,231 Family Dollar Stores, Inc. ................ 1,540 41,441 J.C. Penney Co., Inc. ..................... 2,450 58,604 Kohl's Corp.*.............................. 3,360 118,037 Macy's, Inc. .............................. 4,640 57,026 Nordstrom, Inc. ........................... 1,760 31,838 Sears Holdings Corp.*...................... 630 36,376 Target Corp. .............................. 8,330 334,200 ---------- TOTAL MULTILINE RETAIL 699,753 ---------- OFFICE ELECTRONICS 0.1% Xerox Corp. ............................... 9,630 77,233 ---------- TOTAL OFFICE ELECTRONICS 77,233 ---------- OIL, GAS & CONSUMABLE FUELS 9.1% Anadarko Petroleum Corp. .................. 5,170 182,501 Apache Corp. .............................. 3,690 303,798 Cabot Oil & Gas Corp. ..................... 1,140 32,000 Chesapeake Energy Corp. ................... 5,760 126,547 Chevron Corp. ............................. 22,690 1,692,674 ConocoPhillips............................. 16,780 872,896 CONSOL Energy, Inc. ....................... 2,020 63,408 Devon Energy Corp. ........................ 4,880 394,597 El Paso Corp. ............................. 7,740 75,078 EOG Resources, Inc. ....................... 2,750 222,530 Exxon Mobil Corp. ......................... 57,360 4,251,523 Hess Corp. ................................ 3,130 188,457 Marathon Oil Corp. ........................ 7,790 226,689 Massey Energy Co. ......................... 930 21,474 Murphy Oil Corp. .......................... 2,100 106,344 Noble Energy, Inc. ........................ 1,910 98,976 Occidental Petroleum Corp. ................ 9,020 500,971 Peabody Energy Corp. ...................... 3,000 103,530 Pioneer Natural Resources Co. ............. 1,320 36,736 Range Resources Corp. ..................... 1,710 72,196 Southwestern Energy Co.*................... 3,790 135,000 Spectra Energy Corp. ...................... 6,790 131,251 Sunoco, Inc. .............................. 1,290 39,345 Tesoro Corp. .............................. 1,520 14,698 Valero Energy Corp. ....................... 5,780 118,952 Williams Cos., Inc. ....................... 6,360 133,369 XTO Energy, Inc. .......................... 6,070 218,216 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 10,363,756 ----------
See Notes to Financial Statements. ANNUAL REPORT 32 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS (CONTINUED) PAPER & FOREST PRODUCTS 0.2% International Paper Co. ................... 4,720 $81,278 MeadWestvaco Corp. ........................ 1,890 26,517 Weyerhaeuser Co. .......................... 2,330 89,053 ---------- TOTAL PAPER & FOREST PRODUCTS 196,848 ---------- PERSONAL PRODUCTS 0.2% Avon Products, Inc. ....................... 4,700 116,701 Estee Lauder Cos., Inc -- Class A.......... 1,270 45,771 ---------- TOTAL PERSONAL PRODUCTS 162,472 ---------- PHARMACEUTICALS 6.0% Abbott Laboratories........................ 17,020 938,653 Allergan, Inc. ............................ 3,400 134,878 Barr Pharmaceuticals, Inc.*................ 1,200 77,112 Bristol-Myers Squibb Co. .................. 21,860 449,223 Eli Lilly & Co. ........................... 11,050 373,711 Forest Laboratories, Inc.*................. 3,370 78,285 Johnson & Johnson.......................... 30,860 1,892,952 King Pharmaceuticals, Inc.*................ 2,720 23,909 Merck & Co., Inc. ......................... 23,660 732,277 Mylan Inc.*................................ 3,360 28,795 Pfizer, Inc. .............................. 74,440 1,318,332 Schering-Plough Corp. ..................... 17,950 260,096 Watson Pharmaceuticals, Inc.*.............. 1,150 30,096 Wyeth...................................... 14,730 474,011 ---------- TOTAL PHARMACEUTICALS 6,812,330 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) 0.9% Apartment Investment & Management Co. -- Class A.......................... 950 13,899 AvalonBay Communities, Inc. ............... 850 60,367 Boston Properties, Inc. ................... 1,320 93,562 Developers Diversified Realty Corp. ....... 1,330 17,516 Equity Residential......................... 2,990 104,441 General Growth Properties, Inc. ........... 2,510 10,391 HCP, Inc. ................................. 2,780 83,205 Host Hotels & Resorts, Inc. ............... 5,740 59,352 Kimco Realty Corp. ........................ 2,510 56,676 Plum Creek Timber Co., Inc. ............... 1,890 70,459 ProLogis................................... 2,900 40,600 Public Storage, Inc. ...................... 1,380 112,470 Simon Property Group, Inc. ................ 2,490 166,905 Vornado Realty Trust....................... 1,510 106,530 ---------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 996,373 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.0%(A) CB Richard Ellis Group, Inc. -- Class A*... 1,900 13,319 ---------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 13,319 ---------- ROAD & RAIL 1.0% Burlington Northern Santa Fe Corp. ........ 3,120 277,867 CSX Corp. ................................. 4,500 205,740 Norfolk Southern Corp. .................... 4,140 248,152 Ryder System, Inc. ........................ 620 24,564 Union Pacific Corp. ....................... 5,620 375,248 ---------- TOTAL ROAD & RAIL 1,131,571 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.9% Advanced Micro Devices, Inc.*.............. 6,710 23,485 Altera Corp. .............................. 3,320 57,602 Analog Devices, Inc. ...................... 3,210 68,566 Applied Materials, Inc. ................... 14,820 191,326 Broadcom Corp. -- Class A*................. 4,870 83,180 Intel Corp. ............................... 62,080 993,280 KLA-Tencor Corp. .......................... 1,910 44,407 Linear Technology Corp. ................... 2,450 55,566 LSI Corp.*................................. 7,110 27,374 MEMC Electronic Materials, Inc.*........... 2,490 45,766 Microchip Technology, Inc. ................ 2,030 49,999 Micron Technology, Inc.*................... 8,400 39,564 National Semiconductor Corp. .............. 2,150 28,315 Novellus Systems, Inc.*.................... 1,090 17,222 NVIDIA Corp.*.............................. 6,150 53,874 Teradyne, Inc.*............................ 1,860 9,486 Texas Instruments, Inc. ................... 14,480 283,229 Xilinx, Inc. .............................. 3,050 56,181 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2,128,422 ---------- SOFTWARE 3.1% Adobe Systems, Inc.*....................... 5,860 156,110 Autodesk, Inc.*............................ 2,480 52,849 BMC Software, Inc.*........................ 2,100 54,222 CA, Inc. .................................. 4,350 77,430 Citrix Systems, Inc.*...................... 2,010 51,798 Compuware Corp.*........................... 2,810 17,928 Electronic Arts, Inc.*..................... 3,520 80,186 Intuit, Inc.*.............................. 3,540 88,712 Microsoft Corp. ........................... 86,710 1,936,234 Novell, Inc.*.............................. 3,810 17,755 Oracle Corp.*.............................. 43,270 791,408 Salesforce.com, Inc.*...................... 1,150 35,604 Symantec Corp.*............................ 9,270 116,616 ---------- TOTAL SOFTWARE 3,476,852 ---------- SPECIALTY RETAIL 1.4% Abercrombie & Fitch Co. -- Class A......... 960 27,802 AutoNation, Inc.*.......................... 1,190 8,175 AutoZone, Inc.*............................ 460 58,553 Bed Bath & Beyond, Inc.*................... 2,880 74,218 Best Buy Co., Inc. ........................ 3,730 100,001 GameStop Corp. -- Class A*................. 1,800 49,302 Gap, Inc.(The)............................. 5,190 67,159 Home Depot, Inc. .......................... 18,760 442,548 Limited Brands, Inc. ...................... 3,150 37,737 Lowe's Cos., Inc. ......................... 16,190 351,323 Office Depot, Inc.*........................ 3,040 10,944 RadioShack Corp. .......................... 1,450 18,357 Sherwin-Williams Co.(The).................. 1,090 62,032 Staples, Inc. ............................. 7,850 152,525
See Notes to Financial Statements. ANNUAL REPORT 33 RYDEX 2X S&P 500 ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS (CONCLUDED) Tiffany & Co. ............................. 1,370 $37,607 TJX Cos., Inc. ............................ 4,630 123,899 ---------- TOTAL SPECIALTY RETAIL 1,622,182 ---------- TEXTILES, APPAREL & LUXURY GOODS 0.4% Coach, Inc.*............................... 3,720 76,632 Jones Apparel Group, Inc. ................. 920 10,221 Liz Claiborne, Inc. ....................... 1,050 8,558 NIKE, Inc. -- Class B...................... 4,330 249,538 Polo Ralph Lauren Corp. ................... 630 29,717 V.F. Corp. ................................ 960 52,896 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 427,562 ---------- THRIFTS & MORTGAGE FINANCE 0.1% Hudson City Bancorp, Inc. ................. 5,740 107,969 Sovereign Bancorp, Inc. ................... 6,000 17,400 ---------- TOTAL THRIFTS & MORTGAGE FINANCE 125,369 ---------- TOBACCO 1.6% Altria Group, Inc. ........................ 22,750 436,572 Lorillard, Inc. ........................... 1,920 126,451 Philip Morris International, Inc. ......... 22,760 989,377 Reynolds American, Inc. ................... 1,880 92,045 UST, Inc. ................................. 1,630 110,172 ---------- TOTAL TOBACCO 1,754,617 ---------- TRADING COMPANIES & DISTRIBUTORS 0.1% Fastenal Co. .............................. 1,430 57,572 W.W. Grainger, Inc. ....................... 720 56,570 ---------- TOTAL TRADING COMPANIES & DISTRIBUTORS 114,142 ---------- WIRELESS TELECOMMUNICATION SERVICES 0.2% American Tower Corp. -- Class A*........... 4,350 140,548 Sprint Nextel Corp. ....................... 31,520 98,658 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 239,206 ---------- TOTAL COMMON STOCKS (Cost $107,814,291)................................. 93,707,346 ----------
FACE MARKET AMOUNT VALUE -------------------------------------------------------------------------- REPURCHASE AGREEMENTS 11.2% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $12,688,032 on 11/03/08 collateralized by $13,975,000 FNMA at 5.500% due 07/14/28 with a value of $12,944,344................ $12,688,000 $12,688,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $12,688,000) 12,688,000 ------------ TOTAL INVESTMENTS 93.9% (Cost $120,502,291) 106,395,346 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--6.1% 6,968,547 ------------ NET ASSETS--100.0% $113,363,893 --------------------------------------------------------------------------
UNREALIZED CONTRACTS LOSS ---------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2008 S&P 500 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $131,633,700).................... 2,712 $(2,745,632) ----------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. FNMA--Federal National Mortgage Association See Notes to Financial Statements. ANNUAL REPORT 34 RYDEX INVERSE 2X S&P 500 ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------------------------------ REPURCHASE AGREEMENTS 66.9% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $44,251,111 on 11/03/08 collateralized by $48,535,000 FNMA at 5.550% due 07/10/28 with a value of $45,137,550.................................. $44,251,000 $44,251,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $44,251,000) 44,251,000 ----------- TOTAL INVESTMENTS 66.9% (Cost $44,251,000) 44,251,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--33.1% 21,854,557 ----------- NET ASSETS --100.0% $66,105,557 ------------------------------------------------------------------------------
UNREALIZED CONTRACTS LOSS --------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2008 S&P 500 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $133,720,813)................................... 2,755 $(10,472,763) ---------------------------------------------------------------------------
FNMA--Federal National Mortgage Association See Notes to Financial Statements. ANNUAL REPORT 35 RYDEX 2X S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------- COMMON STOCKS 80.7% AEROSPACE & DEFENSE 0.4% Alliant Techsystems, Inc.*................. 200 $16,508 BE Aerospace, Inc.*........................ 610 7,851 ---------- TOTAL AEROSPACE & DEFENSE 24,359 ---------- AIRLINES 0.3% Airtran Holdings, Inc.*.................... 720 2,945 Alaska Air Group, Inc.*.................... 220 5,434 JetBlue Airways Corp.*..................... 1,120 6,216 ---------- TOTAL AIRLINES 14,595 ---------- AUTO COMPONENTS 0.5% ArvinMeritor, Inc. ........................ 450 2,664 BorgWarner, Inc. .......................... 710 15,954 Gentex Corp. .............................. 870 8,343 Lear Corp.*................................ 470 945 Modine Manufacturing Co. .................. 200 1,480 ---------- TOTAL AUTO COMPONENTS 29,386 ---------- AUTOMOBILES 0.1% Thor Industries, Inc. ..................... 220 3,938 ---------- TOTAL AUTOMOBILES 3,938 ---------- BEVERAGES 0.3% Hansen Natural Corp.*...................... 450 11,394 PepsiAmericas, Inc. ....................... 350 6,625 ---------- TOTAL BEVERAGES 18,019 ---------- BIOTECHNOLOGY 1.3% Cephalon, Inc.*............................ 420 30,122 PDL BioPharma, Inc. ....................... 730 7,118 United Therapeutics Corp.*................. 140 12,212 Vertex Pharmaceuticals, Inc.*.............. 910 23,851 ---------- TOTAL BIOTECHNOLOGY 73,303 ---------- CAPITAL MARKETS 1.6% Affiliated Managers Group, Inc.*........... 250 11,595 Apollo Investment Corp. ................... 870 11,468 Eaton Vance Corp. ......................... 710 15,620 Jefferies Group, Inc. ..................... 740 11,714 Raymond James Financial, Inc. ............. 590 13,741 SEI Investments Co. ....................... 820 14,498 Waddell & Reed Financial, Inc. -- Class A.. 520 7,550 ---------- TOTAL CAPITAL MARKETS 86,186 ---------- CHEMICALS 2.9% Airgas, Inc. .............................. 510 19,564 Albemarle Corp. ........................... 560 13,636 Cabot Corp. ............................... 390 10,316 Chemtura Corp. ............................ 1,480 2,560 Cytec Industries, Inc. .................... 290 8,213 Ferro Corp. ............................... 270 4,180 FMC Corp. ................................. 460 20,028 Lubrizol Corp. ............................ 410 15,408 Minerals Technologies, Inc. ............... 120 6,811 Olin Corp. ................................ 460 8,354 RPM International, Inc. ................... 800 11,360 Scotts Miracle-Gro Co.(The) {d208} Class A....................................... 270 7,052 Sensient Technologies Corp. ............... 300 7,569 Terra Industries, Inc. .................... 560 12,314 Valspar Corp. ............................. 610 12,474 ---------- TOTAL CHEMICALS 159,839 ---------- COMMERCIAL BANKS 3.5% Associated Banc-Corp. ..................... 780 17,207 Bancorpsouth, Inc. ........................ 440 10,679 Bank of Hawaii Corp. ...................... 290 14,706 Cathay General Bancorp..................... 300 7,344 City National Corp. ....................... 250 13,382 Colonial BancGroup, Inc. .................. 1,240 5,034 Commerce Bancshares Inc/Kansas City MO..... 380 17,966 Cullen/Frost Bankers, Inc. ................ 360 20,149 FirstMerit Corp. .......................... 500 11,660 PacWest Bancorp............................ 150 3,749 SVB Financial Group*....................... 200 10,290 Synovus Financial Corp. ................... 1,720 17,768 TCF Financial Corp. ....................... 710 12,595 Webster Financial Corp. ................... 320 5,933 Westamerica Bancorp........................ 180 10,305 Wilmington Trust Corp. .................... 410 11,833 ---------- TOTAL COMMERCIAL BANKS 190,600 ---------- COMMERCIAL SERVICES & SUPPLIES 3.4% Brink's Co.(The)........................... 260 12,607 Clean Harbors, Inc.*....................... 120 7,868 Copart, Inc.*.............................. 400 13,960 Corporate Executive Board Co.(The)......... 210 6,264 Corrections Corp. of America*.............. 770 14,715 Deluxe Corp. .............................. 320 3,891 Dun & Bradstreet Corp. .................... 330 24,318 Herman Miller, Inc. ....................... 340 7,480 HNI Corp. ................................. 270 4,946 Kelly Services, Inc. -- Class A............ 170 2,421 Korn/Ferry International*.................. 290 4,028 Manpower, Inc. ............................ 490 15,254 Mine Safety Appliances Co. ................ 180 4,860 MPS Group, Inc.*........................... 570 4,440 Navigant Consulting, Inc.*................. 280 4,528 Republic Services, Inc. ................... 950 22,515 Rollins, Inc. ............................. 250 4,393 Stericycle, Inc.*.......................... 520 30,384 ---------- TOTAL COMMERCIAL SERVICES & SUPPLIES 188,872 ---------- COMMUNICATIONS EQUIPMENT 1.2% 3Com Corp.*................................ 2,480 6,771 ADC Telecommunications, Inc.*.............. 720 4,565 Adtran, Inc. .............................. 340 5,168 Avocent Corp.*............................. 270 4,055 CommScope, Inc.*........................... 430 6,325 F5 Networks, Inc.*......................... 490 12,162 Foundry Networks, Inc.*.................... 900 13,365 Plantronics, Inc. ......................... 300 4,332 Polycom, Inc.*............................. 520 10,925 ---------- TOTAL COMMUNICATIONS EQUIPMENT 67,668 ---------- COMPUTERS & PERIPHERALS 1.1% Diebold, Inc. ............................. 400 11,888 Imation Corp. ............................. 180 2,218 NCR Corp.*................................. 1,000 18,280
See Notes to Financial Statements. ANNUAL REPORT 36 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Palm, Inc.*................................ 670 $2,673 Western Digital Corp.*..................... 1,360 22,440 ---------- TOTAL COMPUTERS & PERIPHERALS 57,499 ---------- CONSTRUCTION & ENGINEERING 1.3% Dycom Industries, Inc.*.................... 240 2,131 Granite Construction, Inc. ................ 200 7,134 KBR, Inc. ................................. 1,040 15,434 Quanta Services, Inc.*..................... 1,070 21,143 Shaw Group, Inc.(The)*..................... 510 9,124 URS Corp.*................................. 520 15,283 ---------- TOTAL CONSTRUCTION & ENGINEERING 70,249 ---------- CONSTRUCTION MATERIALS 0.4% Martin Marietta Materials, Inc. ........... 250 19,595 ---------- TOTAL CONSTRUCTION MATERIALS 19,595 ---------- CONSUMER FINANCE 0.1% AmeriCredit Corp.*......................... 710 4,161 ---------- TOTAL CONSUMER FINANCE 4,161 ---------- CONTAINERS & PACKAGING 0.9% AptarGroup, Inc. .......................... 420 12,734 Greif, Inc. {d208} Class A................. 210 8,522 Packaging Corp. of America................. 630 10,603 Sonoco Products Co. ....................... 610 15,360 Temple-Inland, Inc. ....................... 650 3,854 ---------- TOTAL CONTAINERS & PACKAGING 51,073 ---------- DIVERSIFIED CONSUMER SERVICES 1.8% Career Education Corp.*.................... 450 7,115 Corinthian Colleges, Inc.*................. 520 7,426 DeVry, Inc. ............................... 380 21,542 ITT Educational Services, Inc.*............ 190 16,653 Matthews International Corp. -- Class A.... 190 8,480 Regis Corp. ............................... 260 3,216 Service Corp. International................ 1,570 10,833 Sotheby's.................................. 410 3,817 Strayer Education, Inc. ................... 90 20,364 ---------- TOTAL DIVERSIFIED CONSUMER SERVICES 99,446 ---------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.1% Cincinnati Bell, Inc.*..................... 1,440 3,442 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 3,442 ---------- ELECTRIC UTILITIES 1.8% DPL, Inc. ................................. 700 15,967 Great Plains Energy, Inc. ................. 730 14,191 Hawaiian Electric Industries, Inc. ........ 520 13,842 IDACORP, Inc. ............................. 280 7,465 Northeast Utilities........................ 950 21,432 Sierra Pacific Resources................... 1,430 11,855 Westar Energy, Inc. ....................... 660 12,863 ---------- TOTAL ELECTRIC UTILITIES 97,615 ---------- ELECTRICAL EQUIPMENT 1.2% AMETEK, Inc. .............................. 650 21,612 Hubbell, Inc. -- Class B................... 340 12,196 Roper Industries, Inc. .................... 550 24,942 Thomas & Betts Corp.*...................... 350 8,313 ---------- TOTAL ELECTRICAL EQUIPMENT 67,063 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.9% Arrow Electronics, Inc.*................... 730 12,738 Avnet, Inc.*............................... 920 15,401 FLIR Systems, Inc.*........................ 850 27,285 Ingram Micro, Inc. -- Class A*............. 1,020 13,597 National Instruments Corp. ................ 350 8,890 Tech Data Corp.*........................... 310 6,650 Trimble Navigation, Ltd.*.................. 740 15,222 Vishay Intertechnology, Inc.*.............. 1,140 4,913 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 104,696 ---------- ENERGY EQUIPMENT & SERVICES 2.6% Exterran Holdings, Inc.*................... 400 8,964 FMC Technologies, Inc.*.................... 780 27,292 Helix Energy Solutions Group, Inc.*........ 560 5,914 Helmerich & Payne, Inc. ................... 640 21,958 Oceaneering International, Inc.*........... 340 9,578 Patterson-UTI Energy, Inc. ................ 960 12,739 Pride International, Inc.*................. 1,060 19,917 Superior Energy Services, Inc.*............ 490 10,447 Tidewater, Inc. ........................... 320 13,955 Unit Corp.*................................ 290 10,887 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 141,651 ---------- FOOD & STAPLES RETAILING 0.4% BJ's Wholesale Club, Inc.*................. 360 12,672 Ruddick Corp. ............................. 240 6,874 ---------- TOTAL FOOD & STAPLES RETAILING 19,546 ---------- FOOD PRODUCTS 1.4% Corn Products International, Inc. ......... 460 11,187 Hormel Foods Corp. ........................ 430 12,152 J.M. Smucker Co.(The)...................... 340 15,151 Lancaster Colony Corp. .................... 120 3,785 Ralcorp Holdings, Inc.*.................... 340 23,011 Smithfield Foods, Inc.*.................... 720 7,574 Tootsie Roll Industries, Inc. ............. 160 3,979 ---------- TOTAL FOOD PRODUCTS 76,839 ---------- GAS UTILITIES 2.2% AGL Resources, Inc. ....................... 470 14,288 Energen Corp. ............................. 440 14,771 Equitable Resources, Inc. ................. 800 27,768 National Fuel Gas Co. ..................... 500 18,095 Oneok, Inc. ............................... 640 20,416 UGI Corp. ................................. 660 15,754 WGL Holdings, Inc. ........................ 310 9,979 ---------- TOTAL GAS UTILITIES 121,071 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 3.1% Advanced Medical Optics, Inc.*............. 320 1,974 Beckman Coulter, Inc. ..................... 380 18,969 Dentsply International, Inc. .............. 910 27,646 Edwards Lifesciences Corp.*................ 340 17,966 Gen-Probe, Inc.*........................... 330 15,530 Hill-Rom Holdings, Inc. ................... 380 8,649 Hologic, Inc.*............................. 1,570 19,217 Idexx Laboratories, Inc.*.................. 360 12,668
See Notes to Financial Statements. ANNUAL REPORT 37 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Kinetic Concepts, Inc.*.................... 350 $8,473 ResMed, Inc.*.............................. 460 15,760 STERIS Corp. .............................. 360 12,254 Teleflex, Inc. ............................ 240 12,718 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 171,824 ---------- HEALTH CARE PROVIDERS & SERVICES 2.4% Community Health Systems, Inc.*............ 590 12,095 Health Management Associates, Inc. -- Class A*...................................... 1,500 3,150 Health Net, Inc.*.......................... 660 8,501 Henry Schein, Inc.*........................ 550 25,745 Kindred Healthcare, Inc.*.................. 180 2,608 LifePoint Hospitals, Inc.*................. 330 7,910 Lincare Holdings, Inc.*.................... 450 11,858 Omnicare, Inc. ............................ 640 17,645 Psychiatric Solutions, Inc.*............... 340 11,319 Universal Health Services, Inc. -- Class B....................................... 310 13,032 VCA Antech, Inc.*.......................... 520 9,412 WellCare Health Plans, Inc.*............... 260 6,284 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 129,559 ---------- HEALTH CARE TECHNOLOGY 0.3% Cerner Corp.*.............................. 420 15,637 ---------- TOTAL HEALTH CARE TECHNOLOGY 15,637 ---------- HOTELS, RESTAURANTS & LEISURE 1.0% Bob Evans Farms, Inc. ..................... 190 3,967 Boyd Gaming Corp. ......................... 350 2,380 Brinker International, Inc. ............... 620 5,766 Cheesecake Factory, Inc.(The)*............. 400 3,520 Chipotle Mexican Grill, Inc. -- Class A*... 200 10,150 International Speedway Corp. -- Class A.... 170 5,336 Life Time Fitness, Inc.*................... 210 3,999 Scientific Games Corp. -- Class A*......... 400 7,200 Wendy's/Arby's Group, Inc. -- Class A*..... 2,860 10,353 ---------- TOTAL HOTELS, RESTAURANTS & LEISURE 52,671 ---------- HOUSEHOLD DURABLES 1.4% American Greetings Corp. -- Class A........ 280 3,270 Blyth, Inc. ............................... 150 1,290 Furniture Brands International, Inc. ...... 250 1,423 Hovnanian Enterprises, Inc. -- Class A*.... 310 1,330 MDC Holdings, Inc. ........................ 220 7,399 Mohawk Industries, Inc.*................... 340 16,449 NVR, Inc.*................................. 30 14,706 Ryland Group, Inc. ........................ 260 4,885 Toll Brothers, Inc.*....................... 800 18,496 Tupperware Brands Corp. ................... 380 9,614 ---------- TOTAL HOUSEHOLD DURABLES 78,862 ---------- HOUSEHOLD PRODUCTS 0.8% Church & Dwight Co., Inc. ................. 410 24,227 Energizer Holdings, Inc.*.................. 360 17,589 ---------- TOTAL HOUSEHOLD PRODUCTS 41,816 ---------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.1% Black Hills Corp. ......................... 240 6,060 ---------- TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 6,060 ---------- INDUSTRIAL CONGLOMERATES 0.2% Carlisle Cos., Inc. ....................... 370 8,603 ---------- TOTAL INDUSTRIAL CONGLOMERATES 8,603 ---------- INSURANCE 4.1% American Financial Group, Inc. ............ 460 10,456 Arthur J. Gallagher & Co. ................. 570 13,885 Brown & Brown, Inc. ....................... 710 14,569 Everest Re Group, Ltd. .................... 380 28,386 Fidelity National Financial, Inc. -- Class A....................................... 1,290 11,623 First American Corp. ...................... 570 11,634 Hanover Insurance Group, Inc. ............. 310 12,168 HCC Insurance Holdings, Inc. .............. 700 15,442 Horace Mann Educators Corp. ............... 240 1,910 Mercury General Corp. ..................... 220 11,301 Old Republic International Corp. .......... 1,410 12,986 Philadelphia Consolidated Holding Co.*..... 350 20,471 Protective Life Corp. ..................... 430 3,591 Reinsurance Group of America, Inc. -- Class A....................................... 440 16,430 StanCorp Financial Group, Inc. ............ 300 10,224 Unitrin, Inc. ............................. 300 6,300 W.R. Berkley Corp. ........................ 860 22,592 ---------- TOTAL INSURANCE 223,968 ---------- INTERNET & CATALOG RETAIL 0.3% NetFlix, Inc.*............................. 260 6,438 Priceline.com, Inc.*....................... 240 12,631 ---------- TOTAL INTERNET & CATALOG RETAIL 19,069 ---------- INTERNET SOFTWARE & SERVICES 0.2% Digital River, Inc.*....................... 230 5,699 ValueClick, Inc.*.......................... 530 3,922 ---------- TOTAL INTERNET SOFTWARE & SERVICES 9,621 ---------- IT SERVICES 2.3% Acxiom Corp. .............................. 410 3,223 Alliance Data Systems Corp.*............... 410 20,565 Broadridge Financial Solutions, Inc. ...... 860 10,406 DST Systems, Inc.*......................... 260 10,551 Gartner, Inc.*............................. 360 6,624 Global Payments, Inc. ..................... 490 19,850 Lender Processing Services, Inc. .......... 510 11,766 Metavante Technologies, Inc.*.............. 550 9,223 NeuStar, Inc. -- Class A*.................. 480 9,456 SAIC, Inc.*................................ 1,180 21,794 SRA International, Inc. -- Class A*........ 260 4,805 ---------- TOTAL IT SERVICES 128,263 ---------- LEISURE EQUIPMENT & PRODUCTS 0.1% Callaway Golf Co. ......................... 400 4,184 ---------- TOTAL LEISURE EQUIPMENT & PRODUCTS 4,184 ---------- LIFE SCIENCES TOOLS & SERVICES 1.8% Affymetrix, Inc.*.......................... 430 1,587 Charles River Laboratories International, Inc.*................................... 420 15,049 Covance, Inc.*............................. 390 19,500 Invitrogen Corp.*.......................... 570 16,410 Pharmaceutical Product Development, Inc. .. 730 22,615 Techne Corp. .............................. 240 16,565 Varian, Inc.*.............................. 180 6,633 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 98,359 ----------
See Notes to Financial Statements. ANNUAL REPORT 38 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------- COMMON STOCKS (CONTINUED) MACHINERY 3.4% AGCO Corp.*................................ 560 $17,651 Crane Co. ................................. 300 4,911 Donaldson Co., Inc. ....................... 480 16,872 Federal Signal Corp. ...................... 290 2,468 Graco, Inc. ............................... 370 9,150 Harsco Corp. .............................. 520 12,308 IDEX Corp. ................................ 510 11,822 Joy Global, Inc. .......................... 660 19,127 Kennametal, Inc. .......................... 470 9,973 Lincoln Electric Holdings, Inc. ........... 260 11,219 Nordson Corp. ............................. 210 7,755 Oshkosh Corp. ............................. 460 3,524 Pentair, Inc. ............................. 610 16,861 SPX Corp. ................................. 330 12,784 Timken Co. ................................ 520 8,258 Trinity Industries, Inc. .................. 500 8,440 Wabtec Corp. .............................. 300 11,928 ---------- TOTAL MACHINERY 185,051 ---------- MARINE 0.1% Alexander & Baldwin, Inc. ................. 250 7,975 ---------- TOTAL MARINE 7,975 ---------- MEDIA 0.9% Belo Corp. -- Class A...................... 540 1,150 DreamWorks Animation SKG, Inc. -- Class A*...................................... 490 13,769 Harte-Hanks, Inc. ......................... 230 1,615 John Wiley & Sons, Inc.- Class A........... 260 9,043 Lamar Advertising Co. -- Class A*.......... 460 6,978 Marvel Entertainment, Inc.*................ 300 9,657 Media General, Inc. -- Class A............. 140 1,068 Scholastic Corp. .......................... 160 2,971 Valassis Communications, Inc.*............. 290 1,288 ---------- TOTAL MEDIA 47,539 ---------- METALS & MINING 1.0% Carpenter Technology Corp. ................ 270 4,887 Cliffs Natural Resources, Inc. ............ 650 17,543 Commercial Metals Co. ..................... 700 7,770 Reliance Steel & Aluminum Co. ............. 390 9,766 Steel Dynamics, Inc. ...................... 1,090 12,993 Worthington Industries, Inc. .............. 370 4,466 ---------- TOTAL METALS & MINING 57,425 ---------- MULTI-UTILITIES 2.5% Alliant Energy Corp. ...................... 680 19,978 MDU Resources Group, Inc. ................. 1,120 20,395 NSTAR...................................... 650 21,482 OGE Energy Corp. .......................... 570 15,561 PNM Resources, Inc. ....................... 530 5,168 Puget Energy, Inc. ........................ 790 18,510 SCANA Corp. ............................... 720 23,695 Vectren Corp. ............................. 500 12,600 ---------- TOTAL MULTI-UTILITIES 137,389 ---------- MULTILINE RETAIL 0.5% 99 Cents Only Stores*...................... 290 3,538 Dollar Tree, Inc.*......................... 550 20,911 Saks, Inc.*................................ 870 5,220 ---------- TOTAL MULTILINE RETAIL 29,669 ---------- OFFICE ELECTRONICS 0.1% Zebra Technologies Corp. -- Class A*....... 400 8,096 ---------- TOTAL OFFICE ELECTRONICS 8,096 ---------- OIL, GAS & CONSUMABLE FUELS 3.1% Arch Coal, Inc. ........................... 880 18,841 Bill Barrett Corp.*........................ 230 4,692 Cimarex Energy Co. ........................ 510 20,635 Comstock Resources, Inc.*.................. 280 13,838 Denbury Resources, Inc.*................... 1,510 19,192 Encore Acquisition Co.*.................... 330 10,279 Forest Oil Corp.*.......................... 550 16,065 Frontier Oil Corp. ........................ 640 8,454 Newfield Exploration Co.*.................. 810 18,614 Overseas Shipholding Group, Inc. .......... 150 5,637 Patriot Coal Corp.*........................ 390 6,174 Plains Exploration & Production Co.*....... 660 18,612 Quicksilver Resources, Inc.*............... 690 7,224 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 168,257 ---------- PAPER & FOREST PRODUCTS 0.1% Louisiana-Pacific Corp. ................... 560 2,688 ---------- TOTAL PAPER & FOREST PRODUCTS 2,688 ---------- PERSONAL PRODUCTS 0.4% Alberto-Culver Co. ........................ 520 13,380 NBTY, Inc.*................................ 330 7,712 ---------- TOTAL PERSONAL PRODUCTS 21,092 ---------- PHARMACEUTICALS 1.0% Endo Pharmaceuticals Holdings, Inc.*....... 740 13,690 Medicis Pharmaceutical Corp. -- Class A.... 350 4,995 Perrigo Co. ............................... 480 16,320 Sepracor, Inc.*............................ 670 8,924 Valeant Pharmaceuticals International*..... 540 10,136 ---------- TOTAL PHARMACEUTICALS 54,065 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) 5.2% Alexandria Real Estate Equities, Inc. ..... 200 13,904 AMB Property Corp. ........................ 600 14,418 BRE Properties, Inc. ...................... 310 10,791 Camden Property Trust...................... 330 11,124 Cousins Properties, Inc. .................. 270 3,910 Duke Realty Corp. ......................... 900 12,699 Equity One, Inc. .......................... 190 3,319 Essex Property Trust, Inc. ................ 160 15,568 Federal Realty Investment Trust............ 360 22,057 Health Care REIT, Inc. .................... 620 27,596 Highwoods Properties, Inc. ................ 390 9,680 Hospitality Properties Trust............... 580 5,887 Liberty Property Trust..................... 600 14,310 Macerich Co. .............................. 460 13,533 Mack-Cali Realty Corp. .................... 400 9,088 Nationwide Health Properties, Inc. ........ 590 17,606 Potlatch Corp. ............................ 240 7,970 Rayonier, Inc. ............................ 480 15,879
See Notes to Financial Statements. ANNUAL REPORT 39 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------- COMMON STOCKS (CONCLUDED) Realty Income Corp. ....................... 620 $14,334 Regency Centers Corp. ..................... 430 16,968 UDR, Inc. ................................. 830 16,401 Weingarten Realty Investors................ 460 9,407 ---------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 286,449 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% Jones Lang LaSalle, Inc. .................. 250 8,230 ---------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 8,230 ---------- ROAD & RAIL 0.9% Avis Budget Group, Inc.*................... 620 1,017 Con-way, Inc. ............................. 280 9,531 J.B. Hunt Transport Services, Inc. ........ 500 14,215 Kansas City Southern*...................... 560 17,287 Werner Enterprises, Inc. .................. 260 5,101 YRC Worldwide, Inc.*....................... 350 1,603 ---------- TOTAL ROAD & RAIL 48,754 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.5% Atmel Corp.*............................... 2,730 11,330 Cree, Inc.*................................ 540 10,600 Fairchild Semiconductor International, Inc.*................................... 770 4,374 Integrated Device Technology, Inc.*........ 1,040 6,614 International Rectifier Corp.*............. 450 6,948 Intersil Corp. -- Class A.................. 760 10,404 Lam Research Corp.*........................ 770 17,217 RF Micro Devices, Inc.*.................... 1,600 3,184 Semtech Corp.*............................. 380 4,606 Silicon Laboratories, Inc.*................ 290 7,528 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 82,805 ---------- SOFTWARE 2.4% ACI Worldwide, Inc.*....................... 210 2,877 Advent Software, Inc.*..................... 100 1,874 Ansys, Inc.*............................... 540 15,460 Cadence Design Systems, Inc.*.............. 1,590 6,471 Factset Research Systems, Inc. ............ 260 10,085 Fair Isaac Corp. .......................... 300 4,677 Jack Henry & Associates, Inc. ............. 530 10,075 Macrovision Solutions Corp.*............... 510 5,651 McAfee, Inc.*.............................. 930 30,272 Mentor Graphics Corp.*..................... 570 4,184 Parametric Technology Corp.*............... 710 9,223 Sybase, Inc.*.............................. 490 13,049 Synopsys, Inc.*............................ 880 16,086 Wind River Systems, Inc.*.................. 420 3,671 ---------- TOTAL SOFTWARE 133,655 ---------- SPECIALTY RETAIL 3.7% Advance Auto Parts, Inc. .................. 590 18,408 Aeropostale, Inc.*......................... 410 9,926 American Eagle Outfitters, Inc. ........... 1,260 14,011 AnnTaylor Stores Corp.*.................... 350 4,400 Barnes & Noble, Inc. ...................... 230 4,342 Borders Group, Inc. ....................... 370 1,254 CarMax, Inc.*.............................. 1,350 14,337 Chico's FAS, Inc.*......................... 1,080 3,672 Coldwater Creek, Inc.*..................... 290 1,041 Collective Brands, Inc.*................... 390 4,988 Dick's Sporting Goods, Inc.*............... 520 7,967 Foot Locker, Inc. ......................... 950 13,889 Guess?, Inc. .............................. 370 8,055 J. Crew Group, Inc.*....................... 320 6,480 O'Reilly Automotive, Inc.*................. 820 22,230 Pacific Sunwear of California, Inc.*....... 400 1,368 PetSmart, Inc. ............................ 780 15,358 Rent-A-Center, Inc.*....................... 410 5,986 Ross Stores, Inc. ......................... 810 26,479 Urban Outfitters, Inc.*.................... 700 15,218 Williams-Sonoma, Inc. ..................... 530 4,389 ---------- TOTAL SPECIALTY RETAIL 203,798 ---------- TEXTILES, APPAREL & LUXURY GOODS 0.6% Hanesbrands, Inc.*......................... 570 9,958 Phillips-Van Heusen Corp. ................. 310 7,598 Timberland Co. -- Class A*................. 290 3,509 Under Armour, Inc. -- Class A*............. 220 5,720 Warnaco Group, Inc.*....................... 280 8,347 ---------- TOTAL TEXTILES, APPAREL & LUXURY GOODS 35,132 ---------- THRIFTS & MORTGAGE FINANCE 1.2% Astoria Financial Corp. ................... 490 9,320 First Niagara Financial Group, Inc. ....... 720 11,354 New York Community Bancorp, Inc. .......... 2,100 32,886 PMI Group, Inc.(The)....................... 420 1,046 Washington Federal, Inc. .................. 540 9,515 ---------- TOTAL THRIFTS & MORTGAGE FINANCE 64,121 ---------- TOBACCO 0.1% Universal Corp. ........................... 160 6,334 ---------- TOTAL TOBACCO 6,334 ---------- TRADING COMPANIES & DISTRIBUTORS 0.4% GATX Corp. ................................ 300 8,565 MSC Industrial Direct Co. -- Class A....... 280 10,041 United Rentals, Inc.*...................... 360 3,690 ---------- TOTAL TRADING COMPANIES & DISTRIBUTORS 22,296 ---------- WATER UTILITIES 0.3% Aqua America, Inc. ........................ 830 14,940 ---------- TOTAL WATER UTILITIES 14,940 ---------- WIRELESS TELECOMMUNICATION SERVICES 0.3% Telephone & Data Systems, Inc. ............ 650 17,453 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 17,453 ---------- TOTAL COMMON STOCKS (Cost $5,196,509) 4,422,420 ---------- TOTAL INVESTMENTS 80.7% (Cost $5,196,509) 4,422,420 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--19.3% 1,057,606 ---------- NET ASSETS--100.0% $5,480,026 ---------------------------------------------------------------------
See Notes to Financial Statements. ANNUAL REPORT 40 RYDEX 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
UNREALIZED CONTRACTS GAIN --------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2008 S&P MidCap 400 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $4,993,120).......... 88 $149,000 ---------- UNITS --------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston January 2009 S&P MidCap 400 Index Swap, Terminating 01/27/09 (Notional Market Value $1,519,841)**........................... 2,673 $236,602 ---------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P MidCap 400 Index +/- financing at a variable rate. See Notes to Financial Statements. ANNUAL REPORT 41 RYDEX INVERSE 2x S&P MIDCAP 400 ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------------------------- REPURCHASE AGREEMENTS 88.9% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $5,866,015 on 11/03/08 collateralized by $6,460,000 FNMA at 5.500% due 07/14/28 with a value of $5,983,575...................... $5,866,000 $5,866,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $5,866,000) 5,866,000 ------------ TOTAL INVESTMENTS 88.9% (Cost $5,866,000) 5,866,000 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--11.1% 730,111 ------------ NET ASSETS--100.0% $6,596,111 ------------------------------------------------------------------------- UNREALIZED CONTRACTS LOSS ------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2008 S&P MidCap 400 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $4,198,760)................... 74 $(466,566) ------------ UNITS ------------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston January 2009 S&P MidCap 400 Index Swap, Terminating 01/27/09 (Notional Market Value $9,031,265)*........ 15,886 $(1,405,948) -------------------------------------------------------------------------
* Price return based on S&P MidCap 400 Index +/- financing at a variable rate. FNMA --Federal National Mortgage Association See Notes to Financial Statements. ANNUAL REPORT 42 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS 80.4% AEROSPACE & DEFENSE 1.6% AAR Corp.*................................. 514 $8,219 Aerovironment, Inc.*....................... 138 4,957 American Science & Engineering, Inc. ...... 120 7,548 Applied Signal Technology, Inc. ........... 168 3,010 Argon ST, Inc.*............................ 170 3,546 Ascent Solar Technologies, Inc.*........... 98 510 Axsys Technologies, Inc.*.................. 118 7,791 Ceradyne, Inc.*............................ 348 8,178 Cubic Corp. ............................... 208 4,628 Curtiss-Wright Corp. ...................... 594 21,919 Ducommun, Inc. ............................ 138 2,786 DynCorp International, Inc. -- Class A*.... 326 4,310 Esterline Technologies Corp.*.............. 386 13,915 GenCorp, Inc.*............................. 754 3,695 HEICO Corp. ............................... 288 11,079 Herley Industries, Inc.*................... 178 2,367 Hexcel Corp.*.............................. 1,268 16,738 Ladish Co., Inc.*.......................... 190 3,236 LMI Aerospace, Inc.*....................... 118 1,802 Moog, Inc. -- Class A*..................... 564 19,808 Orbital Sciences Corp.*.................... 772 15,818 Stanley, Inc.*............................. 118 4,043 Taser International, Inc.*................. 824 4,128 Teledyne Technologies, Inc.*............... 466 21,236 TransDigm Group, Inc.*..................... 436 13,141 Triumph Group, Inc. ....................... 218 9,561 ------------ TOTAL AEROSPACE & DEFENSE 217,969 ------------ AIR FREIGHT & LOGISTICS 0.3% Atlas Air Worldwide Holdings, Inc.*........ 178 3,439 Dynamex, Inc.*............................. 120 2,929 Forward Air Corp. ......................... 378 9,892 HUB Group, Inc. -- Class A*................ 486 15,285 Pacer International, Inc. ................. 456 5,148 Park-Ohio Holdings Corp.*.................. 108 820 ------------ TOTAL AIR FREIGHT & LOGISTICS 37,513 ------------ AIRLINES 0.7% Airtran Holdings, Inc.*.................... 1,546 6,323 Alaska Air Group, Inc.*.................... 476 11,757 Allegiant Travel Co.*...................... 178 7,090 Hawaiian Holdings, Inc.*................... 526 3,682 JetBlue Airways Corp.*..................... 2,280 12,654 Republic Airways Holdings, Inc.*........... 456 6,817 SkyWest, Inc. ............................. 772 11,897 UAL Corp. ................................. 1,656 24,111 US Airways Group, Inc.*.................... 1,506 15,271 ------------ TOTAL AIRLINES 99,602 ------------ AUTO COMPONENTS 0.4% American Axle & Manufacturing Holdings, Inc. ................................... 606 2,176 Amerigon, Inc.*............................ 288 1,382 ArvinMeritor, Inc. ........................ 972 5,754 Cooper Tire & Rubber Co. .................. 774 5,906 Dana Holding Corp.*........................ 1,308 2,485 Dorman Products, Inc.*..................... 148 1,665 Drew Industries, Inc.*..................... 258 3,122 Exide Technologies*........................ 992 4,712 Fuel Systems Solutions, Inc.*.............. 158 4,495 Hayes Lemmerz International, Inc.*......... 1,330 1,769 Lear Corp.*................................ 843 1,695 Modine Manufacturing Co. .................. 426 3,152 Quantum Fuel Systems Technologies Worldwide, Inc.*........................ 1,090 818 Raser Technologies, Inc.*.................. 565 2,435 Spartan Motors, Inc. ...................... 426 1,955 Stoneridge, Inc.*.......................... 190 1,081 Superior Industries International, Inc. ... 306 4,376 Tenneco, Inc.*............................. 614 3,015 Visteon Corp.*............................. 1,644 1,134 Wonder Auto Technolgy, Inc.*............... 198 790 ------------ TOTAL AUTO COMPONENTS 53,917 ------------ AUTOMOBILES 0.0%(A) Fleetwood Enterprises, Inc.*............... 960 393 Winnebago Industries, Inc. ................ 386 2,293 ------------ TOTAL AUTOMOBILES 2,686 ------------ BEVERAGES 0.1% Boston Beer Co., Inc. -- Class A*.......... 110 4,157 Coca-Cola Bottling Co. Consolidated........ 50 2,209 National Beverage Corp.*................... 140 1,282 ------------ TOTAL BEVERAGES 7,648 ------------ BIOTECHNOLOGY 3.5% Acadia Pharmaceuticals, Inc.*.............. 436 828 Acorda Therapeutics, Inc.*................. 486 9,914 Affymax, Inc.*............................. 138 1,849 Alexion Pharmaceuticals, Inc.*............. 1,012 41,239 Alkermes, Inc.*............................ 1,260 12,449 Allos Therapeutics, Inc.*.................. 694 5,073 Alnylam Pharmaceuticals, Inc.*............. 466 10,718 Amicus Therapeutics, Inc.*................. 68 723 Arena Pharmaceuticals, Inc.*............... 972 3,577 Ariad Pharmaceuticals, Inc.*............... 912 1,815 ArQule, Inc.*.............................. 536 1,479 Array BioPharma, Inc.*..................... 624 3,070 Celera Corp.*.............................. 1,052 11,898 Cell Genesys, Inc.*........................ 1,130 259 Celldex Therapeutics Inc*.................. 198 1,534 Cepheid, Inc.*............................. 752 8,926 Cougar Biotechnology, Inc.*................ 198 5,029 Cubist Pharmaceuticals, Inc.*.............. 744 18,890 CV Therapeutics, Inc.*..................... 802 7,483 Cytokinetics, Inc.*........................ 465 1,325 Cytori Therapeutics, Inc.*................. 258 1,032 Dendreon Corp.*............................ 1,230 6,052 Dyax Corp.*................................ 734 2,459 Emergent Biosolutions, Inc.*............... 178 3,206 Enzon Pharmaceuticals, Inc.*............... 594 2,952 Genomic Health, Inc.*...................... 188 3,465 Geron Corp.*............................... 1,030 4,099 GTx, Inc.*................................. 248 3,502 Halozyme Therapeutics, Inc.*............... 802 3,842 Human Genome Sciences, Inc.*............... 1,784 5,762 Idenix Pharmaceuticals, Inc.*.............. 328 1,811 Idera Pharmaceuticals, Inc.*............... 268 2,605 Immunogen, Inc.*........................... 666 3,084 Immunomedics, Inc.*........................ 862 1,293 Incyte Corp.*.............................. 1,002 4,158 Indevus Pharmaceuticals, Inc.*............. 1,022 2,729 InterMune, Inc.*........................... 416 6,128
See Notes to Financial Statements. ANNUAL REPORT 43 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Isis Pharmaceuticals, Inc.*................ 1,190 $16,731 Lexicon Pharmaceuticals, Inc.*............. 1,060 1,664 Ligand Pharmaceuticals, Inc. -- Class B*... 1,110 2,298 MannKind Corp.*............................ 684 2,572 Marshall Edwards, Inc.*.................... 268 332 Martek Biosciences Corp. .................. 436 13,006 Maxygen, Inc.*............................. 328 1,374 Medarex, Inc.*............................. 1,684 11,838 Metabolix, Inc.*........................... 248 2,324 Molecular Insight Pharmaceuticals, Inc.*... 236 1,180 Momenta Pharmaceuticals, Inc.*............. 326 2,970 Myriad Genetics, Inc.*..................... 586 36,971 Nabi Biopharmaceuticals*................... 684 2,681 Nanosphere, Inc.*.......................... 168 837 Neurocrine Biosciences, Inc.*.............. 506 2,090 Novavax, Inc.*............................. 764 1,719 NPS Pharmaceuticals, Inc.*................. 624 4,368 Omrix Biopharmaceuticals, Inc.*............ 188 3,258 Onyx Pharmaceuticals, Inc.*................ 734 19,803 Opko Health, Inc.*......................... 634 970 Orexigen Therapeutics, Inc.*............... 266 1,263 OSI Pharmaceuticals, Inc.*................. 754 28,614 Osiris Therapeutics, Inc.*................. 198 3,004 PDL BioPharma, Inc. ....................... 1,576 15,366 Pharmasset, Inc.*.......................... 218 3,898 Progenics Pharmaceuticals, Inc.*........... 348 3,483 Protalix BioTherapeutics, Inc.*............ 140 238 Regeneron Pharmaceuticals, Inc.*........... 822 15,865 Repligen Corp.*............................ 408 1,636 Rexahn Pharmaceuticals, Inc.*.............. 386 425 Rigel Pharmaceuticals, Inc.*............... 485 4,224 Sangamo Biosciences, Inc.*................. 486 3,796 Savient Pharmaceuticals, Inc.*............. 714 3,399 Seattle Genetics, Inc.*.................... 802 8,245 Synta Pharmaceuticals Corp.*............... 218 1,543 Targacept, Inc.*........................... 238 1,409 Theravance, Inc.*.......................... 684 4,637 United Therapeutics Corp.*................. 298 25,995 XOMA, Ltd.*................................ 1,744 2,180 Zymogenetics, Inc.*........................ 495 1,584 ------------ TOTAL BIOTECHNOLOGY 466,047 ------------ BUILDING PRODUCTS 0.4% AAON, Inc. ................................ 178 2,935 American Woodmark Corp. ................... 138 2,559 Ameron International Corp. ................ 120 5,640 Apogee Enterprises, Inc. .................. 378 3,727 Builders FirstSource, Inc.*................ 208 790 China Architectural Engineering, Inc.*..... 248 977 Gibraltar Industries, Inc. ................ 356 4,717 Griffon Corp.*............................. 576 4,862 Insteel Industries, Inc. .................. 228 2,339 NCI Building Systems, Inc.*................ 258 4,801 Quanex Building Products Corp. ............ 486 4,452 Simpson Manufacturing Co., Inc. ........... 494 11,382 Trex Co., Inc.*............................ 198 3,229 Universal Forest Products, Inc. ........... 218 5,156 ------------ TOTAL BUILDING PRODUCTS 57,566 ------------ CAPITAL MARKETS 1.5% Apollo Investment Corp. ................... 1,874 24,699 Ares Capital Corp. ........................ 1,280 10,061 BGC Partners, Inc. -- Class A.............. 446 1,824 BlackRock Kelso Capital Corp. ............. 170 1,785 Broadpoint Securities Group, Inc.*......... 318 938 Calamos Asset Management, Inc. -- Class A.. 268 2,200 Capital Southwest Corp. ................... 40 4,080 Cohen & Steers, Inc. ...................... 218 3,961 Diamond Hill Investment Group, Inc. ....... 30 1,908 Epoch Holding Corp. ....................... 148 1,295 Evercore Partners, Inc. -- Class A......... 130 1,582 FBR Capital Markets Corp.*................. 366 2,017 FCStone Group, Inc.*....................... 298 1,773 GAMCO Investors, Inc. -- Class A........... 100 3,807 GFI Group, Inc. ........................... 872 2,799 Gladstone Capital Corp. ................... 278 3,311 Gladstone Invt Corp. ...................... 288 1,604 Greenhill & Co., Inc. ..................... 228 15,041 Harris & Harris Group, Inc.*............... 338 1,690 Hercules Technology Growth Capital, Inc. .. 436 3,785 International Assets Holding Corp.*........ 58 936 Kayne Anderson Energy Development Co. ..... 130 1,923 KBW, Inc.*................................. 346 10,131 Knight Capital Group, Inc. -- Class A*..... 1,240 17,930 Kohlberg Capital Corp. .................... 238 1,330 LaBranche & Co., Inc.*..................... 674 4,199 Ladenburg Thalmann Financial Services, Inc.*................................... 1,416 1,784 MCG Capital Corp. ......................... 1,000 820 MVC Capital, Inc. ......................... 318 3,934 NGP Capital Resources Co. ................. 289 3,507 optionsXpress Holdings, Inc. .............. 556 9,875 Patriot Capital Funding, Inc. ............. 276 1,366 PennantPark Investment Corp. .............. 278 1,270 Penson Worldwide, Inc.*.................... 218 1,557 Piper Jaffray Cos., Inc.*.................. 248 9,784 Prospect Capital Corp. .................... 346 4,353 Pzena Investment Management, Inc. -- Class A....................................... 80 354 Riskmetrics Group, Inc.*................... 286 4,407 Sanders Morris Harris Group, Inc. ......... 258 1,909 Stifel Financial Corp.*.................... 333 14,535 SWS Group, Inc. ........................... 318 5,902 Thomas Weisel Partners Group, Inc.*........ 258 1,450 TradeStation Group, Inc.*.................. 426 3,336 U.S. Global Investors, Inc. -- Class A..... 168 1,211 Westwood Holdings Group, Inc. ............. 70 2,685 ------------ TOTAL CAPITAL MARKETS 200,648 ------------ CHEMICALS 1.7% A. Schulman, Inc. ......................... 356 6,376 American Vanguard Corp. ................... 248 3,628 Arch Chemicals, Inc. ...................... 328 9,305 Balchem Corp. ............................. 238 6,083 Calgon Carbon Corp.*....................... 536 7,140 Ferro Corp. ............................... 576 8,916 Flotek Industries, Inc.*................... 298 1,475 GenTek, Inc.*.............................. 118 2,124 H.B. Fuller Co. ........................... 636 11,238 Hercules, Inc. ............................ 1,488 25,013 ICO, Inc.*................................. 366 1,636 Innophos Holdings, Inc. ................... 138 3,692 Innospec, Inc. ............................ 308 2,695 Koppers Holdings, Inc. .................... 278 6,614
See Notes to Financial Statements. ANNUAL REPORT 44 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Landec Corp.*.............................. 308 $2,880 LSB Industries, Inc.*...................... 228 1,874 Minerals Technologies, Inc. ............... 248 14,076 NewMarket Corp. ........................... 178 6,709 NL Industries, Inc. ....................... 90 1,240 Olin Corp. ................................ 982 17,833 OM Group, Inc.*............................ 406 8,664 Penford Corp. ............................. 148 1,905 PolyOne Corp.*............................. 1,230 5,843 Quaker Chemical Corp. ..................... 138 2,640 Rockwood Holdings, Inc.*................... 546 6,743 Sensient Technologies Corp. ............... 634 15,996 ShengdaTech, Inc.*......................... 396 2,008 Solutia, Inc.*............................. 1,248 12,031 Spartech Corp. ............................ 406 2,582 Stepan Co. ................................ 80 2,866 Westlake Chemical Corp. ................... 248 4,521 WR Grace & Co.*............................ 952 8,578 Zep, Inc. ................................. 278 5,852 Zoltek Cos., Inc.*......................... 366 4,315 ------------ TOTAL CHEMICALS 225,091 ------------ COMMERCIAL BANKS 6.5% 1st Source Corp. .......................... 198 4,249 AMCORE Financial, Inc. .................... 266 1,237 Ameris Bancorp............................. 178 1,965 Ames Natl Corp. ........................... 88 2,200 Arrow Financial Corp. ..................... 120 3,119 Bancfirst Corp. ........................... 98 4,939 Banco Latinoamericano de Exportaciones, S.A. -- Class E......................... 358 3,806 BancTrust Financial Group, Inc. ........... 228 2,841 Bank of the Ozarks, Inc. .................. 160 4,864 Banner Corp. .............................. 188 2,401 Boston Private Financial Holdings, Inc. ... 722 6,382 Bryn Mawr Bank Corp. ...................... 90 1,907 Camden National Corp. ..................... 100 2,925 Capital City Bank Group, Inc. ............. 158 4,424 Capitol Bancorp, Ltd. ..................... 188 1,925 Cardinal Financial Corp. .................. 318 1,984 Cascade Bancorp............................ 296 2,824 Cathay General Bancorp..................... 654 16,010 Centerstate Banks of Florida, Inc. ........ 120 2,100 Central Pacific Financial Corp. ........... 378 5,897 Chemical Financial Corp. .................. 316 8,301 Citizens + Northn Corp. ................... 118 2,773 Citizens Republic Bancorp, Inc. ........... 1,602 4,726 City Bank.................................. 178 1,833 City Holding Co. .......................... 210 8,786 CoBiz Financial, Inc. ..................... 248 2,887 Colonial BancGroup, Inc. .................. 2,666 10,824 Columbia Banking System, Inc. ............. 238 3,789 Community Bank System, Inc. ............... 421 10,504 Community Trust Bancorp, Inc. ............. 198 6,609 CVB Financial Corp. ....................... 872 11,040 East West Bancorp, Inc. ................... 834 14,470 Enterprise Financial Services Corp. ....... 148 2,745 F.N.B. Corp. .............................. 1,130 14,803 Farmers Capital Bank Corp. ................ 80 1,582 Financial Institutions, Inc. .............. 148 2,399 First Bancorp Inc/ME....................... 118 2,124 First BanCorp. ............................ 940 9,607 First Bancorp.............................. 188 3,290 First Busey Corp. ......................... 336 6,263 First Commonwealth Financial Corp. ........ 962 10,640 First Community Bancshares, Inc. .......... 120 3,756 First Financial Bancorp.................... 496 6,671 First Financial Bankshares, Inc. .......... 276 14,956 First Financial Corp. ..................... 148 6,257 First Merchants Corp. ..................... 238 5,238 First Midwest Bancorp, Inc. ............... 644 14,303 First South Bancorp, Inc. ................. 108 1,517 FirstMerit Corp. .......................... 1,070 24,952 Frontier Financial Corp. .................. 624 4,156 Glacier Bancorp, Inc. ..................... 714 14,401 Greene Bankshares, Inc. ................... 170 3,358 Guaranty Bancorp*.......................... 694 2,956 Hancock Holding Co. ....................... 338 14,926 Hanmi Financial Corp. ..................... 494 1,976 Harleysville National Corp. ............... 416 5,770 Heartland Financial USA, Inc. ............. 170 4,038 Heritage Commerce Corp. ................... 138 1,786 Home Bancshares, Inc. ..................... 178 4,635 IBERIABANK Corp. .......................... 168 8,558 Independent Bank Corp. .................... 218 6,272 Integra Bank Corp. ........................ 268 1,616 International Bancshares Corp. ............ 674 17,504 Investors Bancorp, Inc.*................... 584 8,386 Lakeland Bancorp, Inc. .................... 268 2,953 Lakeland Financial Corp. .................. 160 3,592 MainSource Financial Group, Inc. .......... 265 4,733 MB Financial, Inc. ........................ 456 13,548 Midwest Banc Holdings, Inc. ............... 296 891 Nara Bancorp, Inc. ........................ 298 3,278 National Penn Bancshares, Inc. ............ 1,050 17,787 NBT Bancorp, Inc. ......................... 426 11,877 Northfield Bancorp, Inc. .................. 258 3,122 Old National Bancorp....................... 872 16,516 Old Second Bancorp, Inc. .................. 178 2,403 Oriental Financial Group................... 318 5,164 Pacific Capital Bancorp.................... 606 11,902 Pacific Continental Corp. ................. 140 1,995 PacWest Bancorp............................ 318 7,947 Park National Corp. ....................... 148 10,767 Peapack Gladstone Financial Corp. ......... 110 3,523 Pennsylvania Commerce Bancorp, Inc.*....... 70 2,083 Peoples Bancorp, Inc. ..................... 138 2,643 Pinnacle Financial Partners, Inc.*......... 298 8,720 Premierwest Bancorp........................ 258 2,103 PrivateBancorp, Inc. ...................... 286 10,299 Prosperity Bancshares, Inc. ............... 516 17,136 Provident Bankshares Corp. ................ 436 4,652 Renasant Corp. ............................ 278 5,827 Republic Bancorp, Inc. -- Class A.......... 120 2,762 S&T Bancorp, Inc. ......................... 316 10,776 S.Y. Bancorp, Inc. ........................ 178 4,902 Sandy Spring Bancorp, Inc. ................ 218 4,680 Santander BanCorp.......................... 60 569 SCBT Financial Corp. ...................... 138 4,677 Seacoast Banking Corp. of Florida.......... 198 1,758 Shore Bancshares, Inc. .................... 110 2,671 Sierra Bancorp............................. 98 1,956 Signature Bank*............................ 455 14,824 Simmons First National Corp. -- Class A.... 188 5,832
See Notes to Financial Statements. ANNUAL REPORT 45 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Smithtown Bancorp, Inc. ................... 130 $2,557 South Financial Group, Inc. ............... 962 5,589 Southside Bancshares, Inc. ................ 158 3,806 Southwest Bancorp, Inc. ................... 188 2,722 State Bancorp Inc/NY....................... 188 2,395 StellarOne Corp. .......................... 298 5,066 Sterling Bancorp........................... 238 3,732 Sterling Bancshares, Inc. ................. 962 7,658 Sterling Financial Corp. .................. 684 5,807 Suffolk Bancorp............................ 128 4,154 Sun Bancorp, Inc.*......................... 190 1,900 Susquehanna Bancshares, Inc. .............. 1,130 17,504 SVB Financial Group*....................... 396 20,374 Texas Capital Bancshares, Inc.*............ 366 6,533 Tompkins Financial Corp. .................. 78 3,822 TowneBank/Portsmouth VA.................... 276 6,036 Trico Bancshares........................... 180 3,877 Trustmark Corp. ........................... 654 13,420 UCBH Holdings, Inc. ....................... 1,458 7,698 UMB Financial Corp. ....................... 408 18,495 Umpqua Holdings Corp. ..................... 792 13,480 Union Bankshares Corp. .................... 178 4,242 United Bankshares, Inc. ................... 496 15,822 United Community Banks, Inc. .............. 536 7,032 United Security Bancshares Co. ............ 110 1,540 Univest Corp. of Pennsylvania.............. 168 5,198 W Holding Co., Inc. ....................... 1,436 933 Washington Trust Bancorp, Inc. ............ 150 3,198 WesBanco, Inc. ............................ 348 9,459 West Bancorporation, Inc. ................. 228 2,850 West Coast Bancorp......................... 208 1,814 Westamerica Bancorp........................ 386 22,099 Western Alliance Bancorp*.................. 248 3,673 Wilshire Bancorp, Inc. .................... 256 2,824 Wintrust Financial Corp. .................. 308 7,885 Yadkin Valley Financial Corp. ............. 150 2,234 ------------ TOTAL COMMERCIAL BANKS 874,278 ------------ COMMERCIAL SERVICES & SUPPLIES 3.6% ABM Industries, Inc. ...................... 576 9,406 ACCO Brands Corp.*......................... 714 2,013 Administaff, Inc. ......................... 286 5,717 Advisory Board Co.(The)*................... 228 5,620 American Ecology Corp. .................... 218 3,824 American Reprographics Co.*................ 476 5,065 AMREP Corp.*............................... 20 602 ATC Technology Corp.*...................... 278 6,097 Bowne & Co., Inc. ......................... 356 2,773 Casella Waste Systems, Inc. -- Class A*.... 298 1,502 CBIZ, Inc.*................................ 594 4,811 CDI Corp. ................................. 178 2,314 Cenveo, Inc.*.............................. 634 3,062 Clean Harbors, Inc.*....................... 258 16,917 Comfort Systems USA, Inc. ................. 526 4,908 COMSYS IT Partners, Inc.*.................. 190 1,155 Consolidated Graphics, Inc.*............... 130 1,691 Cornell Cos., Inc.*........................ 148 3,370 CoStar Group, Inc.*........................ 258 9,293 Courier Corp. ............................. 138 2,403 CRA International, Inc.*................... 148 4,005 Deluxe Corp. .............................. 684 8,317 Duff & Phelps Corp. -- Class A*............ 138 2,622 EnergySolutions, Inc. ..................... 436 1,966 EnerNOC, Inc.*............................. 128 845 Ennis, Inc. ............................... 338 3,978 Exponent, Inc.*............................ 198 5,827 First Advantage Corp. -- Class A*.......... 138 1,508 Fuel Tech, Inc.*........................... 248 2,914 G&K Services, Inc. -- Class A.............. 258 5,828 Geo Group, Inc.(The)*...................... 674 11,903 GeoEye, Inc.*.............................. 238 5,150 Healthcare Services Group, Inc. ........... 566 9,373 Heidrick & Struggles International, Inc. .. 228 5,502 Herman Miller, Inc. ....................... 742 16,324 Hill International, Inc.*.................. 308 1,934 HNI Corp. ................................. 586 10,736 Hudson Highland Group, Inc.*............... 328 1,719 Huron Consulting Group, Inc.*.............. 276 15,006 ICF International, Inc.*................... 88 1,635 ICT Group, Inc.*........................... 118 622 IKON Office Solutions, Inc. ............... 1,070 18,436 Innerworkings, Inc.*....................... 416 2,891 Interface, Inc. -- Class A................. 704 4,963 Kelly Services, Inc. -- Class A............ 346 4,927 Kforce, Inc.*.............................. 406 3,195 Kimball International, Inc. -- Class B..... 418 3,114 Knoll, Inc. ............................... 636 9,197 Korn/Ferry International*.................. 614 8,528 LECG Corp.*................................ 338 1,622 M&F Worldwide Corp.*....................... 150 3,457 McGrath RentCorp........................... 308 7,004 Metalico, Inc.*............................ 318 1,018 Mine Safety Appliances Co. ................ 406 10,962 Mobile Mini, Inc.*......................... 456 7,661 MPS Group, Inc.*........................... 1,240 9,660 Multi-Color Corp. ......................... 140 2,758 Navigant Consulting, Inc.*................. 634 10,252 Odyssey Marine Exploration, Inc.*.......... 634 2,397 On Assignment, Inc.*....................... 466 3,029 PRG-Schultz International, Inc.*........... 198 840 Protection One, Inc.*...................... 80 588 Resources Connection, Inc.*................ 604 10,473 Rollins, Inc. ............................. 546 9,593 Schawk, Inc. .............................. 198 2,600 School Specialty, Inc.*.................... 248 5,208 Spherion Corp.*............................ 724 2,302 Standard Parking Corp.*.................... 118 2,473 Standard Register Co.(The)................. 198 1,610 SYKES Enterprises, Inc.*................... 436 6,959 Team, Inc.*................................ 246 6,831 Tetra Tech, Inc.*.......................... 774 17,020 TrueBlue, Inc.*............................ 584 4,865 United Stationers, Inc.*................... 308 11,516 Viad Corp. ................................ 276 6,031 Volt Information Sciences, Inc.*........... 168 1,285 VSE Corp. ................................. 50 1,640 Waste Connections, Inc.*................... 1,022 34,595 Waste Services, Inc.*...................... 316 1,890 Watson Wyatt Worldwide, Inc. -- Class A.... 564 23,953 ------------ TOTAL COMMERCIAL SERVICES & SUPPLIES 477,600 ------------ COMMUNICATIONS EQUIPMENT 2.2% 3Com Corp.*................................ 5,313 14,505 Acme Packet, Inc.*......................... 358 1,697
See Notes to Financial Statements. ANNUAL REPORT 46 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Adtran, Inc. .............................. 742 $11,278 Airvana, Inc.*............................. 318 1,396 Anaren, Inc.*.............................. 190 2,366 Arris Group, Inc.*......................... 1,616 11,167 Aruba Networks, Inc.*...................... 694 2,158 Avanex Corp.*.............................. 178 552 Avocent Corp.*............................. 594 8,922 Bel Fuse, Inc. -- Class B.................. 158 3,429 BigBand Networks, Inc.*.................... 436 1,613 Black Box Corp. ........................... 228 6,933 Blue Coat Systems, Inc.*................... 436 5,886 Bookham, Inc.*............................. 1,328 717 Cogo Group, Inc.*.......................... 338 1,839 Comtech Telecommunications Corp.*.......... 318 15,398 DG FastChannel, Inc.*...................... 231 4,091 Digi International, Inc.*.................. 338 3,461 EMS Technologies, Inc.*.................... 208 4,347 Emulex Corp.*.............................. 1,110 10,545 Extreme Networks*.......................... 1,160 2,134 Finisar Corp.*............................. 5,204 3,174 Foundry Networks, Inc.*.................... 1,924 28,571 Globecomm Systems, Inc.*................... 268 2,112 Harmonic, Inc.*............................ 1,240 8,816 Harris Stratex Networks, Inc. -- Class A*.. 336 2,228 Hughes Communications, Inc.*............... 98 1,593 Infinera Corp.*............................ 1,220 9,492 InterDigital, Inc.*........................ 596 12,981 Ixia*...................................... 564 3,756 Loral Space & Communications, Ltd.*........ 158 1,817 MRV Communications, Inc.*.................. 2,072 1,533 NETGEAR, Inc.*............................. 466 5,149 Neutral Tandem, Inc.*...................... 218 3,798 Nextwave Wireless, Inc.*................... 636 178 Oplink Communications, Inc.*............... 276 2,241 Opnext, Inc.*.............................. 248 992 Orbcomm, Inc.*............................. 416 1,248 Parkervision, Inc.*........................ 306 1,533 PC-Tel, Inc. .............................. 256 1,503 Plantronics, Inc. ......................... 644 9,299 Polycom, Inc.*............................. 1,150 24,162 Powerwave Technologies, Inc.*.............. 1,734 1,647 Riverbed Technology, Inc.*................. 742 9,297 SeaChange International, Inc.*............. 406 3,102 ShoreTel, Inc.*............................ 574 2,795 Sonus Networks, Inc.*...................... 2,686 5,936 Starent Networks Corp.*.................... 396 3,948 Sycamore Networks, Inc.*................... 2,518 8,410 Symmetricom, Inc.*......................... 604 2,688 Tekelec*................................... 862 10,939 Utstarcom, Inc.*........................... 1,458 3,470 ViaSat, Inc.*.............................. 336 6,122 ------------ TOTAL COMMUNICATIONS EQUIPMENT 298,964 ------------ COMPUTERS & PERIPHERALS 0.7% 3PAR, Inc.*................................ 347 2,214 Adaptec, Inc.*............................. 1,596 5,123 Avid Technology, Inc.*..................... 396 5,873 Compellent Technologies, Inc.*............. 178 1,940 Cray, Inc.*................................ 436 1,369 Data Domain, Inc.*......................... 436 8,049 Electronics for Imaging, Inc.*............. 704 7,462 Hutchinson Technology, Inc.*............... 308 2,107 Hypercom Corp.*............................ 704 1,373 Imation Corp. ............................. 396 4,879 Immersion Corp.*........................... 406 2,103 Intermec, Inc.*............................ 812 10,532 Intevac, Inc.*............................. 288 2,241 Isilon Systems, Inc.*...................... 326 1,115 Netezza Corp.*............................. 495 4,801 Novatel Wireless, Inc.*.................... 416 2,167 Palm, Inc.*................................ 1,416 5,650 Presstek, Inc.*............................ 366 1,530 Quantum Corp.*............................. 2,584 749 Rackable Systems, Inc.*.................... 388 2,766 Rimage Corp.*.............................. 128 1,887 STEC, Inc.*................................ 406 2,233 Stratasys, Inc.*........................... 268 3,237 Super Micro Computer, Inc.*................ 288 1,809 Synaptics, Inc.*........................... 446 13,777 ------------ TOTAL COMPUTERS & PERIPHERALS 96,986 ------------ CONSTRUCTION & ENGINEERING 0.6% Dycom Industries, Inc.*.................... 526 4,671 EMCOR Group, Inc.*......................... 892 15,851 Furmanite Corp.*........................... 476 3,808 Granite Construction, Inc. ................ 436 15,552 Great Lakes Dredge & Dock Corp. ........... 526 2,356 Insituform Technologies, Inc. -- Class A*.. 366 4,915 Integrated Electrical Services, Inc.*...... 100 1,223 Layne Christensen Co.*..................... 256 6,728 MasTec, Inc.*.............................. 566 4,936 Michael Baker Corp.*....................... 98 2,335 Northwest Pipe Co.*........................ 120 3,448 Orion Marine Group, Inc.*.................. 286 1,481 Perini Corp.*.............................. 664 12,629 Pike Electric Corp.*....................... 220 1,925 Sterling Construction Co, Inc.*............ 150 1,982 ------------ TOTAL CONSTRUCTION & ENGINEERING 83,840 ------------ CONSTRUCTION MATERIALS 0.1% Headwaters, Inc.*.......................... 554 5,872 Texas Industries, Inc. .................... 308 9,742 U.S. Concrete, Inc.*....................... 526 1,657 United States Lime & Minerals, Inc.*....... 20 510 ------------ TOTAL CONSTRUCTION MATERIALS 17,781 ------------ CONSUMER FINANCE 0.3% Advance America Cash Advance Centers, Inc. ................................... 554 1,485 Advanta Corp. -- Class B................... 506 2,287 Cardtronics, Inc.*......................... 158 882 Cash America International, Inc. .......... 386 13,653 CompuCredit Corp.*......................... 208 537 Credit Acceptance Corp.*................... 80 1,227 Dollar Financial Corp.*.................... 318 3,698 Ezcorp, Inc. -- Class A*................... 506 8,015 First Cash Financial Services, Inc.*....... 258 3,965 First Marblehead Corp (The)................ 912 1,550 Nelnet, Inc. -- Class A.................... 228 3,336 World Acceptance Corp.*.................... 218 4,029 ------------ TOTAL CONSUMER FINANCE 44,664 ------------
See Notes to Financial Statements. ANNUAL REPORT 47 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) CONTAINERS & PACKAGING 0.3% AEP Industries, Inc.*...................... 70 $1,370 Boise, Inc.*............................... 447 282 Bway Holding Co.*.......................... 100 748 Graphic Packaging Holding Co.*............. 1,904 3,522 Myers Industries, Inc. .................... 376 3,974 Rock-Tenn Co. -- Class A................... 504 15,327 Silgan Holdings, Inc. ..................... 336 15,637 ------------ TOTAL CONTAINERS & PACKAGING 40,860 ------------ DISTRIBUTORS 0.0%(A) Aristotle Corp (The)*...................... 20 122 Audiovox Corp. -- Class A*................. 228 1,343 Core-Mark Holding Co., Inc.*............... 128 2,530 ------------ TOTAL DISTRIBUTORS 3,995 ------------ DIVERSIFIED CONSUMER SERVICES 0.8% American Public Education, Inc.*........... 148 6,552 Capella Education Co.*..................... 188 8,911 Coinstar, Inc.*............................ 368 8,828 Corinthian Colleges, Inc.*................. 1,120 15,994 Jackson Hewitt Tax Service, Inc. .......... 376 5,181 K12, Inc.*................................. 78 2,145 Learning Tree International, Inc.*......... 118 1,505 Lincoln Educational Services Corp.*........ 58 839 Matthews International Corp. -- Class A.... 408 18,209 Pre-Paid Legal Services, Inc.*............. 108 4,264 Princeton Review, Inc.*.................... 178 991 Regis Corp. ............................... 566 7,001 Sotheby's.................................. 892 8,305 Steiner Leisure, Ltd.*..................... 218 5,646 Stewart Enterprises, Inc. -- Class A....... 1,100 5,687 thinkorswim Group, Inc.*................... 684 5,472 Universal Technical Institute, Inc.*....... 286 4,719 ------------ TOTAL DIVERSIFIED CONSUMER SERVICES 110,249 ------------ DIVERSIFIED FINANCIAL SERVICES 0.4% Ampal-American Israel Corp -- Class A*..... 258 583 Asset Acceptance Capital Corp.*............ 198 1,606 Compass Diversified Holdings............... 316 3,855 Encore Capital Group, Inc.*................ 178 1,666 Fifth Street Finance Corp. ................ 130 884 Financial Federal Corp. ................... 336 7,778 Interactive Brokers Group, Inc. -- Class A*...................................... 536 11,454 Life Partners Holdings, Inc. .............. 80 3,214 MarketAxess Holdings, Inc.*................ 406 2,322 Medallion Financial Corp. ................. 198 1,602 NewStar Financial, Inc.*................... 316 1,710 PHH Corp.*................................. 714 5,755 Pico Holdings, Inc.*....................... 218 5,459 Portfolio Recovery Associates, Inc.*....... 198 7,104 Primus Guaranty, Ltd.*..................... 297 134 Resource America, Inc. -- Class A.......... 128 736 ------------ TOTAL DIVERSIFIED FINANCIAL SERVICES 55,862 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 0.7% Alaska Communications Systems Group, Inc. ................................... 574 5,361 Atlantic Tele-Network, Inc. ............... 128 3,114 Cbeyond, Inc.*............................. 316 3,798 Cincinnati Bell, Inc.*..................... 3,202 7,653 Cogent Communications Group, Inc.*......... 626 2,992 Consolidated Communications Holdings, Inc. ................................... 306 3,152 Fairpoint Communications, Inc. ............ 1,170 4,657 General Communication, Inc. -- Class A*.... 596 4,577 Global Crossing Ltd.*...................... 346 2,304 Globalstar, Inc.*.......................... 554 305 Hungarian Telephone & Cable Corp.*......... 60 645 Ibasis, Inc.*.............................. 416 919 IDT Corp. -- Class B*...................... 684 705 Iowa Telecommunications Services, Inc. .... 426 6,441 NTELOS Holdings Corp. ..................... 396 10,296 PAETEC Holding Corp.*...................... 1,626 1,464 Premiere Global Services, Inc.*............ 814 8,099 Shenandoah Telecom Co. .................... 308 7,383 tw telecom inc*............................ 1,942 13,750 Vonage Holdings Corp.*..................... 644 605 ------------ TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 88,220 ------------ ELECTRIC UTILITIES 1.4% Allete, Inc. .............................. 346 12,110 Central Vermont Public Service Corp. ...... 138 2,748 Cleco Corp. ............................... 794 18,270 El Paso Electric Co.*...................... 594 11,001 Empire District Electric Co.(The).......... 446 8,568 IDACORP, Inc. ............................. 596 15,889 ITC Holdings Corp. ........................ 654 26,539 MGE Energy, Inc. .......................... 288 10,261 NorthWestern Corp. ........................ 516 10,083 Portland General Electric Co. ............. 824 16,909 UIL Holdings Corp. ........................ 336 11,088 Unisource Energy Corp. .................... 456 12,576 Westar Energy, Inc. ....................... 1,378 26,857 ------------ TOTAL ELECTRIC UTILITIES 182,899 ------------ ELECTRICAL EQUIPMENT 1.7% Acuity Brands, Inc. ....................... 536 18,739 Advanced Battery Technologies, Inc.*....... 576 1,642 Akeena Solar, Inc.*........................ 278 781 American Superconductor Corp.*............. 554 6,930 AO Smith Corp. ............................ 266 8,392 AZZ, Inc.*................................. 158 4,610 Baldor Electric Co. ....................... 606 10,641 Beacon Power Corp.*........................ 1,262 1,148 Belden, Inc. .............................. 576 12,004 Brady Corp. -- Class A..................... 664 20,584 Capstone Turbine Corp.*.................... 1,922 2,595 China BAK Battery, Inc.*................... 436 1,125 Coleman Cable, Inc.*....................... 108 752 Encore Wire Corp. ......................... 238 4,562 Ener1, Inc.*............................... 476 3,727 Energy Conversion Devices, Inc.*........... 594 20,279 EnerSys*................................... 366 4,838 Evergreen Solar, Inc.*..................... 1,892 7,171 Franklin Electric Co., Inc. ............... 298 12,564 FuelCell Energy, Inc.*..................... 902 4,312 Fushi Copperweld, Inc.*.................... 188 837 GrafTech International, Ltd.*.............. 1,576 12,781 GT Solar International, Inc.*.............. 398 1,835 Harbin Electric, Inc.*..................... 98 803 II-VI, Inc.*............................... 318 8,933 LaBarge, Inc.*............................. 160 2,200 LSI Industries, Inc. ...................... 248 1,947 Medis Technologies, Ltd.*.................. 416 507 Microvision, Inc.*......................... 893 1,545
See Notes to Financial Statements. ANNUAL REPORT 48 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Orion Energy Systems, Inc.*................ 118 $524 Plug Power, Inc.*.......................... 1,060 1,039 Polypore International, Inc.*.............. 208 1,774 Powell Industries, Inc.*................... 98 1,814 Power-One, Inc.*........................... 982 1,090 PowerSecure International, Inc.*........... 228 878 Preformed Line Products Co. ............... 38 1,520 Regal-Beloit Corp. ........................ 426 13,871 Ultralife Corp.*........................... 168 1,460 Valence Technology, Inc.*.................. 666 1,532 Vicor Corp. ............................... 258 1,803 Woodward Governor Co. ..................... 774 24,845 ------------ TOTAL ELECTRICAL EQUIPMENT 230,934 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS 1.5% Agilysys, Inc. ............................ 298 1,198 Anixter International, Inc.*............... 396 13,310 Benchmark Electronics, Inc.*............... 892 10,695 Brightpoint, Inc.*......................... 654 3,767 Checkpoint Systems, Inc.*.................. 524 6,608 China Security & Surveillance Technology, Inc.*................................... 376 3,937 Cogent, Inc.*.............................. 544 4,972 Cognex Corp. .............................. 554 8,875 Coherent, Inc.*............................ 308 7,792 Comverge, Inc.*............................ 288 1,308 CPI International, Inc.*................... 128 1,262 CTS Corp. ................................. 446 3,118 Daktronics, Inc. .......................... 436 4,343 DTS, Inc.*................................. 238 4,915 Echelon Corp.*............................. 388 3,154 Electro Rent Corp. ........................ 286 3,429 Electro Scientific Industries, Inc.*....... 356 2,980 Elixir Gaming Technologies, Inc.*.......... 892 125 FARO Technologies, Inc.*................... 218 3,307 Gerber Scientific, Inc.*................... 308 1,472 ICx Technologies, Inc.*.................... 178 1,456 Insight Enterprises, Inc.*................. 616 5,994 IPG Photonics Corp.*....................... 256 3,635 KEMET Corp.*............................... 1,059 625 L-1 Identity Solutions, Inc.*.............. 862 7,068 Littelfuse, Inc.*.......................... 288 5,374 Maxwell Technologies, Inc.*................ 238 2,159 Measurement Specialties, Inc.*............. 188 2,008 Mercury Computer Systems, Inc.*............ 298 2,140 Methode Electronics, Inc. ................. 504 3,825 MTS Systems Corp. ......................... 228 7,405 Multi-Fineline Electronix, Inc.*........... 118 1,378 Newport Corp.*............................. 476 3,422 OSI Systems, Inc.*......................... 208 2,392 Park Electrochemical Corp. ................ 268 5,794 PC Connection, Inc.*....................... 128 773 PC Mall, Inc.*............................. 148 663 Plexus Corp.*.............................. 526 9,815 Radisys Corp.*............................. 298 1,898 Rofin-Sinar Technologies, Inc.*............ 388 8,648 Rogers Corp.*.............................. 238 7,164 Sanmina-SCI Corp.*......................... 6,998 5,248 Scansource, Inc.*.......................... 346 6,865 Smart Modular Technologies WWH, Inc.*...... 584 1,583 SYNNEX Corp.*.............................. 228 3,518 Technitrol, Inc. .......................... 536 3,093 TTM Technologies, Inc.*.................... 564 4,038 Universal Display Corp.*................... 378 4,090 Zygo Corp.*................................ 198 1,701 ------------ TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 204,339 ------------ ENERGY EQUIPMENT & SERVICES 1.3% Allis-Chalmers Energy, Inc.*............... 368 2,488 Basic Energy Services, Inc.*............... 544 7,442 Bolt Technology Corp.*..................... 110 892 Bristow Group, Inc.*....................... 318 7,877 Bronco Drilling Co., Inc.*................. 346 2,671 Cal Dive International, Inc.*.............. 584 4,970 CARBO Ceramics, Inc. ...................... 268 11,596 Complete Production Services, Inc.*........ 634 7,855 Dawson Geophysical Co.*.................... 100 2,453 Dril-Quip, Inc.*........................... 406 10,028 ENGlobal Corp.*............................ 356 1,563 Geokinetics, Inc.*......................... 60 342 Grey Wolf, Inc.*........................... 2,359 15,145 Gulf Island Fabrication, Inc. ............. 158 3,114 Gulfmark Offshore, Inc.*................... 298 11,026 Hornbeck Offshore Services, Inc.*.......... 306 7,283 ION Geophysical Corp.*..................... 1,112 7,295 Lufkin Industries, Inc. ................... 198 10,359 Matrix Service Co.*........................ 346 4,238 Mitcham Industries, Inc.*.................. 128 699 NATCO Group, Inc. -- Class A*.............. 266 5,623 Natural Gas Services Group, Inc.*.......... 158 2,094 Newpark Resources, Inc.*................... 1,188 6,831 OYO Geospace Corp.*........................ 50 1,434 Parker Drilling Co.*....................... 1,488 7,619 PHI, Inc.*................................. 178 3,734 Pioneer Drilling Co.*...................... 654 5,062 RPC, Inc. ................................. 386 4,088 Sulphco, Inc.*............................. 704 1,408 Superior Well Services, Inc.*.............. 218 3,651 T-3 Energy Services, Inc.*................. 168 4,050 Trico Marine Services, Inc.*............... 168 1,512 Union Drilling, Inc.*...................... 188 1,030 Willbros Group, Inc.*...................... 514 7,962 ------------ TOTAL ENERGY EQUIPMENT & SERVICES 175,434 ------------ FOOD & STAPLES RETAILING 0.8% Andersons, Inc.(The)....................... 238 6,338 Arden Group, Inc. -- Class A............... 18 2,700 Casey's General Stores, Inc. .............. 666 20,113 Great Atlantic & Pacific Tea Co., Inc.*.... 466 3,854 Ingles Markets, Inc. -- Class A............ 168 3,135 Nash Finch Co. ............................ 168 6,624 Pantry, Inc.(The)*......................... 296 6,518 Pricesmart, Inc. .......................... 188 2,801 Ruddick Corp. ............................. 556 15,924 Spartan Stores, Inc. ...................... 288 7,773 Susser Holdings Corp.*..................... 100 1,558 United Natural Foods, Inc.*................ 566 12,645 Village Super Market -- Class A............ 40 1,966 Weis Markets, Inc. ........................ 148 4,801 Winn-Dixie Stores, Inc.*................... 714 10,724 ------------ TOTAL FOOD & STAPLES RETAILING 107,474 ------------
See Notes to Financial Statements. ANNUAL REPORT 49 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) FOOD PRODUCTS 1.6% AgFeed Industries, Inc.*................... 258 $1,130 Alico, Inc. ............................... 50 1,969 American Dairy, Inc.*...................... 88 1,081 B&G Foods, Inc. -- Class A................. 268 1,000 Cal-Maine Foods, Inc. ..................... 168 4,937 Calavo Growers, Inc. ...................... 138 1,401 Chiquita Brands International, Inc.*....... 574 7,835 Darling International, Inc.*............... 1,072 8,083 Diamond Foods, Inc. ....................... 208 6,080 Farmer Brothers Co. ....................... 90 2,160 Flowers Foods, Inc. ....................... 1,020 30,243 Fresh Del Monte Produce, Inc.*............. 554 11,695 Green Mountain Coffee Roasters, Inc.*...... 228 6,610 Griffin Land & Nurseries, Inc. ............ 40 1,227 Hain Celestial Group, Inc.*................ 536 12,456 HQ Sustainable Maritime Industries, Inc.*.. 88 361 Imperial Sugar Co. ........................ 158 1,871 J&J Snack Foods Corp. ..................... 188 5,896 Lancaster Colony Corp. .................... 268 8,453 Lance, Inc. ............................... 356 7,365 Lifeway Foods, Inc.*....................... 60 600 Omega Protein Corp.*....................... 238 1,756 Pilgrim's Pride Corp. ..................... 565 621 Ralcorp Holdings, Inc.*.................... 744 50,354 Reddy Ice Holdings, Inc. .................. 238 633 Sanderson Farms, Inc. ..................... 268 8,367 Smart Balance, Inc.*....................... 824 5,900 Synutra International, Inc.*............... 138 1,932 Tootsie Roll Industries, Inc. ............. 316 7,859 TreeHouse Foods, Inc.*..................... 416 12,588 Zhongpin, Inc.*............................ 246 2,118 ------------ TOTAL FOOD PRODUCTS 214,581 ------------ GAS UTILITIES 1.2% Chesapeake Utilities Corp. ................ 90 2,812 Laclede Group, Inc. ....................... 288 15,068 New Jersey Resources Corp. ................ 554 20,631 Nicor, Inc. ............................... 594 27,449 Northwest Natural Gas Co. ................. 348 17,706 Piedmont Natural Gas Co., Inc. ............ 970 31,932 South Jersey Industries, Inc. ............. 396 13,492 Southwest Gas Corp. ....................... 574 14,993 WGL Holdings, Inc. ........................ 654 21,052 ------------ TOTAL GAS UTILITIES 165,135 ------------ HEALTH CARE EQUIPMENT & SUPPLIES 3.1% Abaxis, Inc.*.............................. 288 4,427 Abiomed, Inc.*............................. 446 6,503 Accuray, Inc.*............................. 476 3,008 Align Technology, Inc.*.................... 814 5,641 Alphatec Holdings, Inc.*................... 328 1,289 American Medical Systems Holdings, Inc.*... 962 10,409 Analogic Corp. ............................ 178 7,861 Angiodynamics, Inc.*....................... 318 4,007 Arthrocare Corp.*.......................... 348 7,231 Atrion Corp. .............................. 20 1,979 Cantel Medical Corp.*...................... 168 1,613 Cardiac Science Corp.*..................... 258 2,407 Conceptus, Inc.*........................... 396 6,415 CONMED Corp.*.............................. 376 9,851 CryoLife, Inc.*............................ 366 4,904 Cyberonics, Inc.*.......................... 316 4,026 Cynosure, Inc. -- Class A*................. 128 1,121 Datascope Corp. ........................... 170 8,529 DexCom, Inc.*.............................. 346 1,564 ev3, Inc.*................................. 930 6,017 Exactech, Inc.*............................ 100 2,020 Greatbatch, Inc.*.......................... 298 6,482 Haemonetics Corp.*......................... 338 19,962 Hansen Medical, Inc.*...................... 228 2,123 I-Flow Corp.*.............................. 286 1,613 ICU Medical, Inc.*......................... 148 4,740 Immucor, Inc.*............................. 922 24,479 Insulet Corp.*............................. 238 1,333 Integra LifeSciences Holdings Corp.*....... 238 8,935 Invacare Corp. ............................ 426 7,749 IRIS International, Inc.*.................. 238 2,654 Kensey Nash Corp.*......................... 98 2,488 Masimo Corp.*.............................. 606 19,386 Medical Action Industries, Inc.*........... 188 2,162 Mentor Corp. .............................. 446 7,537 Meridian Bioscience, Inc. ................. 526 12,929 Merit Medical Systems, Inc.*............... 366 6,698 Micrus Endovascular Corp.*................. 208 2,454 Natus Medical, Inc.*....................... 366 5,600 Neogen Corp.*.............................. 188 5,540 NuVasive, Inc.*............................ 466 21,944 NxStage Medical, Inc.*..................... 338 1,372 OraSure Technologies, Inc.*................ 616 2,840 Orthofix International NV*................. 228 3,089 Orthovita, Inc.*........................... 872 2,389 Palomar Medical Technologies, Inc.*........ 238 2,723 Quidel Corp.*.............................. 368 5,818 RTI Biologics, Inc.*....................... 704 2,147 Sirona Dental Systems, Inc.*............... 218 3,481 Somanetics Corp.*.......................... 158 2,963 SonoSite, Inc.*............................ 218 4,593 Spectranetics Corp.*....................... 416 1,248 Stereotaxis, Inc.*......................... 358 1,443 STERIS Corp. .............................. 772 26,279 SurModics, Inc.*........................... 208 5,512 Symmetry Medical, Inc.*.................... 466 6,021 Synovis Life Technologies, Inc.*........... 168 2,938 Thoratec Corp.*............................ 714 17,579 TomoTherapy, Inc.*......................... 536 1,742 TranS1, Inc.*.............................. 160 1,018 Vision Sciences, Inc.*..................... 218 687 Vnus Medical Technologies, Inc.*........... 170 2,623 Volcano Corp.*............................. 624 9,703 West Pharmaceutical Services, Inc. ........ 426 17,006 Wright Medical Group, Inc.*................ 486 11,266 Zoll Medical Corp.*........................ 278 6,694 ------------ TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 410,804 ------------ HEALTH CARE PROVIDERS & SERVICES 3.4% Air Methods Corp.*......................... 140 2,349 Alliance Imaging, Inc.*.................... 336 2,738 Almost Family, Inc.*....................... 80 3,853 Amedisys, Inc.*............................ 348 19,631 AMERIGROUP Corp.*.......................... 704 17,600 AMN Healthcare Services, Inc.*............. 446 4,010 Amsurg Corp.*.............................. 416 10,375 Assisted Living Concepts, Inc. -- Class A*...................................... 724 3,598
See Notes to Financial Statements. ANNUAL REPORT 50 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) athenahealth, Inc.*........................ 268 $8,201 Bio-Reference Labs, Inc.*.................. 150 3,689 BMP Sunstone Corp.*........................ 306 2,062 Capital Senior Living Corp.*............... 296 1,329 CardioNet, Inc.*........................... 60 1,535 Catalyst Health Solutions, Inc.*........... 436 7,355 Centene Corp.*............................. 574 10,814 Chemed Corp. .............................. 300 13,137 Chindex International, Inc.*............... 148 1,240 Corvel Corp.*.............................. 3,880 104,062 Cross Country Healthcare, Inc.*............ 406 4,596 Emergency Medical Services Corp. -- Class A*...................................... 120 3,943 Emeritus Corp.*............................ 258 2,975 Ensign Group, Inc. ........................ 110 1,803 Five Star Quality Care, Inc.*.............. 416 815 Genoptix, Inc.*............................ 110 3,678 Gentiva Health Services, Inc.*............. 336 9,122 Hanger Orthopedic Group, Inc.*............. 390 6,497 Healthsouth Corp.*......................... 1,160 14,546 Healthspring, Inc.*........................ 654 10,804 Healthways, Inc.*.......................... 466 4,707 HMS Holdings Corp.*........................ 328 8,125 inVentiv Health, Inc.*..................... 436 4,129 IPC The Hospitalist Co, Inc.*.............. 80 1,629 Kindred Healthcare, Inc.*.................. 368 5,332 Landauer, Inc. ............................ 120 6,487 LHC Group, Inc.*........................... 190 6,703 Magellan Health Services, Inc.*............ 536 19,800 MedCath Corp.*............................. 208 3,207 Molina Healthcare, Inc.*................... 188 4,187 MWI Veterinary Supply, Inc.*............... 138 4,779 National Healthcare Corp. ................. 110 4,511 National Research Corp. ................... 20 573 Nighthawk Radiology Holdings, Inc.*........ 308 1,414 Odyssey HealthCare, Inc.*.................. 436 4,181 Owens & Minor, Inc. ....................... 544 23,539 PharMerica Corp.*.......................... 398 8,171 Providence Service Corp.*.................. 160 192 PSS World Medical, Inc.*................... 814 14,766 Psychiatric Solutions, Inc.*............... 734 24,435 RadNet, Inc.*.............................. 278 956 RehabCare Group, Inc.*..................... 238 4,077 Res-Care, Inc.*............................ 328 5,055 Skilled Healthcare Group, Inc. -- Class A*...................................... 228 2,800 Sun Healthcare Group, Inc.*................ 566 6,498 Sunrise Senior Living, Inc.*............... 594 1,794 Triple-S Mgmt Corp. -- Class B*............ 188 1,919 Universal American Corp.*.................. 516 4,567 US Physical Therapy, Inc.*................. 158 2,193 Virtual Radiologic Corp.*.................. 90 783 ------------ TOTAL HEALTH CARE PROVIDERS & SERVICES 457,866 ------------ HEALTH CARE TECHNOLOGY 0.3% Allscripts-Misys Healthcare Solutions, Inc. ................................... 754 4,901 Computer Programs & Systems, Inc. ......... 120 3,323 Eclipsys Corp.*............................ 714 10,603 MedAssets, Inc.*........................... 238 3,434 Omnicell, Inc.*............................ 408 4,480 Phase Forward, Inc.*....................... 564 8,048 Vital Images, Inc.*........................ 208 2,715 ------------ TOTAL HEALTH CARE TECHNOLOGY 37,504 ------------ HOTELS, RESTAURANTS & LEISURE 1.8% AFC Enterprises, Inc.*..................... 336 1,633 Ambassadors Group, Inc. ................... 248 2,589 Ameristar Casinos, Inc. ................... 336 3,095 Bally Technologies, Inc.*.................. 724 16,037 BJ's Restaurants, Inc.*.................... 228 2,027 Bluegreen Corp.*........................... 168 815 Bob Evans Farms, Inc. ..................... 406 8,477 Buffalo Wild Wings, Inc.*.................. 238 6,731 California Pizza Kitchen, Inc.*............ 278 2,716 CBRL Group, Inc. .......................... 288 5,737 CEC Entertainment, Inc.*................... 268 6,882 Cheesecake Factory, Inc.(The)*............. 842 7,410 Churchill Downs, Inc. ..................... 128 4,861 CKE Restaurants, Inc. ..................... 694 5,892 Denny's Corp.*............................. 1,250 2,237 DineEquity Inc. ........................... 228 4,111 Domino's Pizza, Inc.*...................... 516 3,070 Dover Downs Gaming & Entertainment, Inc. .. 188 963 Dover Motorsports, Inc. ................... 198 424 Einstein Noah Restaurant Group, Inc.*...... 60 481 Gaylord Entertainment Co.*................. 536 11,476 Great Wolf Resorts, Inc.*.................. 356 673 Isle of Capri Casinos, Inc.*............... 208 1,059 Jack in the Box, Inc.*..................... 774 15,557 Krispy Kreme Doughnuts, Inc.*.............. 744 2,053 Landry's Restaurants, Inc. ................ 158 1,983 Life Time Fitness, Inc.*................... 456 8,682 Lodgian, Inc.*............................. 218 1,112 Luby's, Inc.*.............................. 286 1,384 Marcus Corp. .............................. 268 3,760 Monarch Casino & Resort, Inc.*............. 150 1,337 Morgans Hotel Group Co.*................... 356 1,695 O'Charleys, Inc. .......................... 238 1,785 P.F. Chang's China Bistro, Inc.*........... 318 6,506 Papa John's International, Inc.*........... 288 6,497 Peet's Coffee & Tea, Inc.*................. 188 4,222 Pinnacle Entertainment, Inc.*.............. 792 4,435 Red Robin Gourmet Burgers, Inc.*........... 218 3,311 Rick's Cabaret International, Inc.*........ 88 556 Riviera Holdings Corp.*.................... 130 558 Ruby Tuesday, Inc.*........................ 684 1,648 Ruth's Hospitality Group Inc*.............. 268 614 Shuffle Master, Inc.*...................... 694 2,679 Six Flags, Inc.*........................... 920 285 Sonic Corp.*............................... 792 8,474 Speedway Motorsports, Inc. ................ 178 2,839 Steak n Shake Co.(The)*.................... 378 1,947 Texas Roadhouse, Inc. -- Class A*.......... 694 4,872 Town Sports International Holdings, Inc.*.. 228 568 Vail Resorts, Inc.*........................ 416 13,836 Wendy's/Arby's Group, Inc. -- Class A*..... 5,224 18,911 WMS Industries, Inc.*...................... 576 14,400 ------------ TOTAL HOTELS, RESTAURANTS & LEISURE 235,902 ------------ HOUSEHOLD DURABLES 0.8% American Greetings Corp. -- Class A........ 614 7,172 Beazer Homes USA, Inc.*.................... 516 1,636 Blyth, Inc. ............................... 318 2,735 Brookfield Homes Corp. .................... 120 1,099 Cavco Industries, Inc.*.................... 88 2,995 Champion Enterprises, Inc.*................ 1,022 1,911 CSS Industries, Inc. ...................... 100 2,220
See Notes to Financial Statements. ANNUAL REPORT 51 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Ethan Allen Interiors, Inc. ............... 326 $5,832 Furniture Brands International, Inc. ...... 546 3,107 Helen of Troy, Ltd.*....................... 396 7,124 Hooker Furniture Corp. .................... 120 1,093 Hovnanian Enterprises, Inc. -- Class A*.... 614 2,634 iRobot Corp.*.............................. 238 2,456 La-Z-Boy, Inc. ............................ 674 3,896 Libbey, Inc. .............................. 190 695 M/I Homes, Inc. ........................... 188 2,559 Meritage Homes Corp.*...................... 406 5,574 National Presto Industries, Inc. .......... 60 3,975 Palm Harbor Homes, Inc.*................... 130 1,118 Russ Berrie & Co., Inc.*................... 218 589 Ryland Group, Inc. ........................ 556 10,447 Sealy Corp. ............................... 584 1,886 Skyline Corp. ............................. 90 1,946 Standard Pacific Corp.*.................... 1,636 4,663 Tempur-Pedic International, Inc. .......... 982 7,669 Tupperware Brands Corp. ................... 814 20,594 Universal Electronics, Inc.*............... 188 3,972 ------------ TOTAL HOUSEHOLD DURABLES 111,597 ------------ HOUSEHOLD PRODUCTS 0.1% Central Garden & Pet Co. -- Class A*....... 852 2,709 Spectrum Brands, Inc.*..................... 505 369 WD-40 Co. ................................. 218 6,344 ------------ TOTAL HOUSEHOLD PRODUCTS 9,422 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2% Black Hills Corp. ......................... 506 12,777 Ormat Technologies, Inc. .................. 238 5,750 Synthesis Energy Systems, Inc.*............ 336 739 U S Geothermal, Inc.*...................... 814 684 ------------ TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 19,950 ------------ INDUSTRIAL CONGLOMERATES 0.2% China Direct, Inc.*........................ 90 228 Otter Tail Corp. .......................... 466 10,942 Raven Industries, Inc. .................... 208 6,695 Standex International Corp. ............... 168 4,336 Tredegar Corp. ............................ 318 4,681 United Capital Corp.*...................... 20 445 ------------ TOTAL INDUSTRIAL CONGLOMERATES 27,327 ------------ INSURANCE 3.1% Ambac Financial Group, Inc. ............... 3,786 10,146 AmCOMP, Inc.*.............................. 168 2,039 American Equity Investment Life Holding Co. .................................... 722 3,263 American Physicians Capital, Inc. ......... 110 4,500 American Safety Insurance Holdings Ltd.*... 138 1,428 Amerisafe, Inc.*........................... 248 4,275 Amtrust Financial Services, Inc. .......... 208 2,043 Argo Group International Holdings, Ltd.*... 406 12,951 Aspen Insurance Holdings, Ltd. ............ 1,130 25,945 Assured Guaranty, Ltd. .................... 734 8,243 Baldwin & Lyons, Inc. -- Class B........... 110 2,001 Castlepoint Holdings, Ltd. ................ 438 3,951 Citizens, Inc.*............................ 496 4,211 CNA Surety Corp.*.......................... 218 3,019 Crawford & Co. -- Class B*................. 318 4,611 Delphi Financial Group -- Class A.......... 546 8,599 Donegal Group, Inc. -- Class A............. 158 2,588 eHealth, Inc.*............................. 328 4,172 EMC Insurance Group, Inc. ................. 78 1,908 Employers Holdings, Inc. .................. 654 8,345 Enstar Group, Ltd.*........................ 70 5,330 FBL Financial Group, Inc. -- Class A....... 168 2,933 First Acceptance Corp.*.................... 228 695 First Mercury Financial Corp.*............. 188 2,028 Flagstone Reinsurance Holdings, Ltd. ...... 396 4,194 Fpic Insurance Group, Inc.*................ 110 4,924 Greenlight Capital Re, Ltd.*............... 378 4,733 Hallmark Financial Services*............... 78 507 Harleysville Group, Inc. .................. 170 5,369 Hilltop Holdings, Inc.*.................... 594 5,584 Horace Mann Educators Corp. ............... 536 4,267 Independence Holding Co. .................. 88 575 Infinity Property & Casualty Corp. ........ 198 7,884 IPC Holdings, Ltd. ........................ 664 18,333 Kansas City Life Insurance Co. ............ 60 2,865 LandAmerica Financial Group, Inc. ......... 208 2,049 Maiden Holdings Ltd. ...................... 644 2,911 Max Capital Group, Ltd. ................... 744 11,867 Meadowbrook Insurance Group, Inc. ......... 734 3,868 Montpelier Re Holdings, Ltd. .............. 1,230 17,601 National Financial Partners Corp. ......... 524 3,490 National Interstate Corp. ................. 80 1,400 National Western Life Insurance Co. -- Class A.......................... 30 5,663 Navigators Group, Inc.*.................... 178 8,991 NYMAGIC, Inc. ............................. 60 1,047 Odyssey Re Holdings Corp. ................. 318 12,542 Phoenix Cos., Inc. ........................ 1,508 9,757 Platinum Underwriters Holdings, Ltd. ...... 644 20,441 PMA Capital Corp. -- Class A*.............. 416 1,922 Presidential Life Corp. ................... 288 2,701 ProAssurance Corp.*........................ 426 23,409 RLI Corp. ................................. 248 14,233 Safety Insurance Group, Inc. .............. 218 8,282 SeaBright Insurance Holdings, Inc.*........ 278 2,908 Selective Insurance Group, Inc. ........... 704 16,720 State Auto Financial Corp. ................ 188 4,952 Stewart Information Services Corp. ........ 228 3,785 Tower Group, Inc. ......................... 268 5,636 United America Indemnity, Ltd. -- Class A*...................................... 246 2,947 United Fire & Casualty Co. ................ 298 6,905 Validus Holdings, Ltd. .................... 852 15,114 Zenith National Insurance Corp. ........... 486 15,970 ------------ TOTAL INSURANCE 415,570 ------------ INTERNET & CATALOG RETAIL 0.3% 1-800-FLOWERS.COM, Inc. -- Class A*........ 346 1,851 Bidz.com, Inc.*............................ 78 526 Blue Nile, Inc.*........................... 178 5,443 Drugstore.Com*............................. 1,100 1,958 Gaiam, Inc. -- Class A*.................... 238 1,952 NetFlix, Inc.*............................. 534 13,222 NutriSystem, Inc. ......................... 406 5,745 Orbitz Worldwide, Inc.*.................... 486 1,638 Overstock.com, Inc.*....................... 208 2,581 PetMed Express, Inc.*...................... 316 5,581 Shutterfly, Inc.*.......................... 258 1,968 Stamps.com, Inc.*.......................... 187 1,825 ------------ TOTAL INTERNET & CATALOG RETAIL 44,290 ------------
See Notes to Financial Statements. ANNUAL REPORT 52 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) INTERNET SOFTWARE & SERVICES 1.5% Ariba, Inc.*............................... 1,130 $12,091 Art Technology Group, Inc.*................ 1,696 3,307 AsiaInfo Holdings, Inc.*................... 456 5,011 Bankrate, Inc.*............................ 168 5,529 Chordiant Software, Inc.*.................. 396 1,315 comScore, Inc.*............................ 238 2,904 Constant Contact, Inc.*.................... 268 3,219 DealerTrack Holdings, Inc.*................ 564 6,052 Dice Holdings, Inc.*....................... 208 844 Digital River, Inc.*....................... 486 12,043 DivX, Inc.*................................ 356 2,485 EarthLink, Inc.*........................... 1,448 9,991 GSI Commerce, Inc.*........................ 308 3,188 HSW International, Inc.*................... 366 337 InfoSpace, Inc. ........................... 456 3,908 Internap Network Services Corp.*........... 664 1,899 Internet Brands, Inc. -- Class A*.......... 288 1,869 Internet Capital Group, Inc.*.............. 506 2,894 Interwoven, Inc.*.......................... 604 7,616 j2 Global Communications, Inc.*............ 584 9,414 Keynote Systems, Inc.*..................... 180 1,764 Knot, Inc.(The)*........................... 376 2,594 Limelight Networks, Inc.*.................. 378 900 Liquidity Services, Inc.*.................. 190 1,596 LoopNet, Inc.*............................. 386 2,922 Marchex, Inc. -- Class B................... 316 2,427 MercadoLibre, Inc.*........................ 336 4,593 ModusLink Global Solutions, Inc.*.......... 615 3,419 Move, Inc.*................................ 1,694 2,846 NIC, Inc. ................................. 526 2,825 Omniture, Inc.*............................ 822 9,453 Perficient, Inc.*.......................... 426 2,339 Rackspace Hosting, Inc.*................... 228 1,297 RealNetworks, Inc.*........................ 1,190 5,093 S1 Corp.*.................................. 654 4,101 SAVVIS, Inc.*.............................. 496 4,266 SonicWALL, Inc.*........................... 704 3,154 SupportSoft, Inc.*......................... 614 1,535 Switch & Data Facilities Co., Inc.*........ 268 2,524 TechTarget, Inc.*.......................... 188 919 Terremark Worldwide, Inc.*................. 694 3,130 TheStreet.com, Inc. ....................... 238 938 United Online, Inc. ....................... 1,020 7,548 ValueClick, Inc.*.......................... 1,140 8,436 Vignette Corp.*............................ 326 2,647 VistaPrint, Ltd.*.......................... 584 9,969 Vocus, Inc.*............................... 208 3,501 Web.com Group, Inc.*....................... 366 1,797 Websense, Inc.*............................ 594 11,595 ------------ TOTAL INTERNET SOFTWARE & SERVICES 206,044 ------------ IT SERVICES 1.5% Acxiom Corp. .............................. 804 6,319 BearingPoint, Inc.*........................ 2,743 604 CACI International, Inc. -- Class A*....... 396 16,307 Cass Information Systems, Inc. ............ 90 3,128 China Information Security Technology, Inc*.................................... 298 1,183 Ciber, Inc.*............................... 704 3,802 CSG Systems International, Inc.*........... 456 7,583 Cybersource Corp.*......................... 912 11,081 Euronet Worldwide, Inc.*................... 624 7,438 ExlService Holdings, Inc.*................. 188 1,372 Forrester Research, Inc.*.................. 208 5,834 Gartner, Inc.*............................. 782 14,389 Gevity HR, Inc. ........................... 308 1,050 Global Cash Access Holdings, Inc.*......... 526 1,483 Hackett Group Inc (The)*................... 544 1,621 Heartland Payment Systems, Inc. ........... 318 5,536 iGate Corp.*............................... 288 1,956 infoGROUP, Inc. ........................... 436 1,945 Integral Systems, Inc.*.................... 228 5,602 Mantech International Corp. -- Class A*.... 268 14,456 MAXIMUS, Inc. ............................. 248 7,921 NCI, Inc. -- Class A*...................... 88 2,094 Ness Technologies, Inc.*................... 516 3,813 Online Resources Corp.*.................... 378 1,323 Perot Systems Corp. -- Class A*............ 1,140 16,405 RightNow Technologies, Inc.*............... 366 2,408 Safeguard Scientifics, Inc.*............... 1,534 1,212 Sapient Corp.*............................. 1,160 6,368 SI International, Inc.*.................... 178 5,126 SRA International, Inc. -- Class A*........ 564 10,423 Syntel, Inc. .............................. 168 4,178 TeleTech Holdings, Inc.*................... 516 4,665 TNS, Inc.*................................. 326 4,623 VeriFone Holdings, Inc.*................... 902 10,247 Virtusa Corp.*............................. 118 650 Wright Express Corp.*...................... 514 7,037 ------------ TOTAL IT SERVICES 201,182 ------------ LEISURE EQUIPMENT & PRODUCTS 0.4% Brunswick Corp. ........................... 1,158 4,018 Callaway Golf Co. ......................... 872 9,121 JAKKS Pacific, Inc.*....................... 358 8,009 Leapfrog Enterprises, Inc.*................ 436 2,943 Marine Products Corp. ..................... 130 805 Nautilus, Inc.*............................ 298 727 Polaris Industries, Inc. .................. 436 14,680 Pool Corp. ................................ 634 11,038 RC2 Corp.*................................. 228 2,896 Smith & Wesson Holding Corp.*.............. 496 1,141 Steinway Musical Instruments*.............. 90 2,003 ------------ TOTAL LEISURE EQUIPMENT & PRODUCTS 57,381 ------------ LIFE SCIENCES TOOLS & SERVICES 1.0% Accelrys, Inc.*............................ 356 1,705 Affymetrix, Inc.*.......................... 912 3,365 Albany Molecular Research, Inc.*........... 308 3,896 AMAG Pharmaceuticals, Inc.*................ 228 6,972 Bio-Rad Laboratories, Inc. -- Class A*..... 248 21,174 Bruker Corp.*.............................. 664 2,716 Caliper Life Sciences, Inc.*............... 634 888 Cambrex Corp.*............................. 386 1,737 Clinical Data, Inc.*....................... 138 1,518 Dionex Corp.*.............................. 238 12,811 Enzo Biochem, Inc.*........................ 426 2,458 eResearchTechnology, Inc.*................. 574 3,708 Exelixis, Inc.*............................ 1,388 4,775 Kendle International, Inc.*................ 170 3,072 Life Sciences Research, Inc.*.............. 108 1,991 Luminex Corp.*............................. 544 10,145 Medivation, Inc.*.......................... 336 6,307 Nektar Therapeutics*....................... 1,220 6,747
See Notes to Financial Statements. ANNUAL REPORT 53 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Parexel International Corp.*............... 744 $7,738 PharmaNet Development Group, Inc.*......... 258 413 Sequenom, Inc.*............................ 744 13,392 Varian, Inc.*.............................. 388 14,298 ------------ TOTAL LIFE SCIENCES TOOLS & SERVICES 131,826 ------------ MACHINERY 2.5% 3D Systems Corp.*.......................... 238 2,587 Accuride Corp.*............................ 445 142 Actuant Corp. -- Class A................... 734 13,161 Alamo Group, Inc. ......................... 80 1,006 Albany International Corp. -- Class A...... 388 5,649 Altra Holdings, Inc.*...................... 348 3,111 American Railcar Industries, Inc. ......... 120 1,334 Ampco-Pittsburgh Corp. .................... 110 2,600 Astec Industries, Inc.*.................... 238 6,050 Badger Meter, Inc. ........................ 190 4,788 Barnes Group, Inc. ........................ 634 9,199 Blount International, Inc.*................ 506 4,397 Briggs & Stratton Corp. ................... 654 10,307 Cascade Corp. ............................. 120 3,961 Chart Industries, Inc.*.................... 376 5,121 China Fire & Security Group, Inc.*......... 188 1,617 CIRCOR International, Inc. ................ 218 6,682 CLARCOR, Inc. ............................. 664 23,499 Colfax Corp.*.............................. 286 2,437 Columbus McKinnon Corp.*................... 248 3,482 Commercial Vehicle Group, Inc.*............ 286 380 Dynamic Materials Corp. ................... 168 3,192 Energy Recovery, Inc.*..................... 198 1,148 EnPro Industries, Inc.*.................... 268 5,952 ESCO Technologies, Inc.*................... 346 11,937 Federal Signal Corp. ...................... 634 5,395 Flanders Corp.*............................ 208 1,290 Flow International Corp.*.................. 496 1,905 Force Protection, Inc.*.................... 902 2,517 FreightCar America, Inc. .................. 158 4,125 Gorman-Rupp Co. ........................... 188 5,913 Graham Corp. .............................. 130 2,730 Greenbrier Cos., Inc. ..................... 218 1,798 Hurco Cos., Inc.*.......................... 88 1,980 K-Tron International, Inc.*................ 30 2,820 Kadant, Inc.*.............................. 188 3,091 Kaydon Corp. .............................. 366 12,228 Key Technology, Inc.*...................... 70 1,133 LB Foster Co. -- Class A*.................. 148 4,070 Lindsay Corp. ............................. 158 7,518 Lydall, Inc.*.............................. 218 1,450 Met-Pro Corp. ............................. 198 2,313 Middleby Corp.*............................ 228 9,209 Mueller Industries, Inc. .................. 486 11,115 Mueller Water Products, Inc. -- Class A.... 1,516 10,612 NACCO Industries, Inc. -- Class A.......... 80 4,929 NN, Inc. .................................. 208 1,500 Nordson Corp. ............................. 446 16,471 Omega Flex, Inc. .......................... 40 856 PMFG, Inc.*................................ 168 1,824 RBC Bearings, Inc.*........................ 288 6,834 Robbins & Myers, Inc. ..................... 368 7,507 Sauer-Danfoss, Inc. ....................... 148 1,517 Sun Hydraulics Corp. ...................... 158 3,309 Tecumseh Products Co. -- Class A*.......... 218 4,037 Tennant Co. ............................... 218 5,470 Thermadyne Holdings Corp.*................. 178 1,604 Titan International, Inc. ................. 456 5,271 Titan Machinery, Inc.*..................... 98 1,213 Trimas Corp.*.............................. 190 751 TurboChef Technologies, Inc.*.............. 308 1,549 Twin Disc, Inc. ........................... 118 915 Wabash National Corp. ..................... 406 2,452 Wabtec Corp. .............................. 636 25,287 Watts Water Technologies, Inc. -- Class A.. 386 10,202 Xerium Technologies, Inc. ................. 276 1,074 ------------ TOTAL MACHINERY 331,523 ------------ MARINE 0.2% American Commercial Lines, Inc.*........... 475 3,529 Eagle Bulk Shipping, Inc. ................. 614 6,122 Genco Shipping & Trading, Ltd. ............ 318 6,631 Horizon Lines, Inc. -- Class A............. 396 1,857 International Shipholding Corp. ........... 80 1,967 TBS International, Ltd.*................... 138 1,181 Ultrapetrol Bahamas, Ltd.*................. 328 1,358 ------------ TOTAL MARINE 22,645 ------------ MEDIA 0.9% AH Belo Corp. -- Class A................... 268 887 Arbitron, Inc. ............................ 358 11,664 Belo Corp. -- Class A...................... 1,178 2,509 Charter Communications, Inc. -- Class A*... 5,382 2,368 Cinemark Holdings, Inc. ................... 396 3,283 Citadel Broadcasting Corp.*................ 2,278 683 CKX, Inc.*................................. 694 3,081 Cox Radio, Inc. -- Class A*................ 338 1,842 Crown Media Holdings, Inc. -- Class A*..... 140 435 Cumulus Media, Inc. -- Class A*............ 348 365 Dolan Media Co.*........................... 336 1,378 Entercom Communications Corp. -- Class A... 327 226 Entravision Communications Corp. -- Class A*...................................... 777 1,469 Fisher Communications, Inc. ............... 90 3,321 Global Sources, Ltd.*...................... 228 1,801 Global Traffic Network, Inc.*.............. 158 845 Gray Television, Inc. ..................... 535 267 Harte-Hanks, Inc. ......................... 486 3,412 Idearc, Inc. .............................. 1,852 704 Interactive Data Corp. .................... 486 11,460 Journal Communications, Inc. -- Class A.... 556 1,390 Knology, Inc.*............................. 376 1,820 Lee Enterprises, Inc. ..................... 594 1,485 LIN TV Corp. -- Class A*................... 356 609 Live Nation, Inc.*......................... 1,000 11,250 Martha Stewart Living Omnimedia, Inc. -- Class A*........................ 336 1,757 Marvel Entertainment, Inc.*................ 644 20,730 McClatchy Co. -- Class A................... 752 2,309 Media General, Inc. -- Class A............. 298 2,274 Mediacom Communications Corp. -- Class A*.. 516 2,291 National CineMedia, Inc. .................. 556 4,504 Outdoor Channel Holdings, Inc.*............ 208 1,664 Playboy Enterprises, Inc. -- Class B*...... 278 687 Primedia, Inc. ............................ 317 396 RCN Corp.*................................. 496 3,199 RH Donnelley Corp.*........................ 870 739 RHI Entertainment, Inc.*................... 178 2,385
See Notes to Financial Statements. ANNUAL REPORT 54 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Scholastic Corp. .......................... 318 $5,905 Sinclair Broadcast Group, Inc. -- Class A.. 694 2,242 Valassis Communications, Inc.*............. 634 2,815 Value Line, Inc. .......................... 20 771 Westwood One, Inc.*........................ 892 259 World Wrestling Entertainment, Inc. -- Class A......................... 278 3,959 ------------ TOTAL MEDIA 127,440 ------------ METALS & MINING 0.7% Allied Nevada Gold Corp.*.................. 594 2,049 AM Castle & Co. ........................... 218 2,653 AMCOL International Corp. ................. 338 8,291 Apex Silver Mines, Ltd.*................... 774 1,029 Brush Engineered Materials, Inc.*.......... 268 3,288 China Precision Stl, Inc.*................. 228 495 Coeur d'Alene Mines Corp.*................. 6,941 4,998 Compass Minerals International, Inc. ...... 426 23,400 General Moly, Inc.*........................ 824 1,640 General Stl Hldgs, Inc.*................... 140 664 Haynes International, Inc.*................ 158 3,999 Hecla Mining Co.*.......................... 1,676 4,173 Horsehead Holding Corp.*................... 456 1,578 Kaiser Aluminum Corp. ..................... 208 6,981 Olympic Steel, Inc. ....................... 118 2,697 Royal Gold, Inc. .......................... 386 11,128 RTI International Metals, Inc.*............ 306 4,832 Stillwater Mining Co.*..................... 524 2,075 Sutor Technology Group Ltd.*............... 100 215 Universal Stainless & Alloy*............... 90 1,659 Worthington Industries, Inc. .............. 852 10,284 ------------ TOTAL METALS & MINING 98,128 ------------ MULTI-UTILITIES 0.3% Avista Corp. .............................. 702 13,942 CH Energy Group, Inc. ..................... 208 8,576 PNM Resources, Inc. ....................... 1,140 11,115 ------------ TOTAL MULTI-UTILITIES 33,633 ------------ MULTILINE RETAIL 0.1% 99 Cents Only Stores*...................... 616 7,515 Dillard's, Inc. -- Class A................. 754 4,019 Fred's, Inc. -- Class A.................... 526 6,443 Retail Ventures, Inc.*..................... 378 779 Tuesday Morning Corp.*..................... 398 892 ------------ TOTAL MULTILINE RETAIL 19,648 ------------ OIL, GAS & CONSUMABLE FUELS 3.0% Abraxas Petroleum Corp.*................... 554 1,219 Alon USA Energy, Inc. ..................... 140 1,235 American Oil & Gas, Inc.*.................. 486 875 APCO Argentina, Inc. ...................... 50 1,397 Approach Resources, Inc.*.................. 118 1,286 Arena Resources, Inc.*..................... 496 15,118 Arlington Tankers, Ltd. ................... 168 1,633 Atlas America, Inc. ....................... 456 10,447 ATP Oil & Gas Corp.*....................... 366 4,407 Aventine Renewable Energy Holdings, Inc.*.. 386 753 Berry Petroleum Co. -- Class A............. 564 13,141 Bill Barrett Corp.*........................ 486 9,914 BMB Munai, Inc.*........................... 526 1,310 BPZ Resources, Inc.*....................... 792 7,841 Brigham Exploration Co.*................... 606 4,751 Callon Petroleum Co.*...................... 278 2,869 Cano Petroleum, Inc.*...................... 624 362 Carrizo Oil & Gas, Inc.*................... 358 8,374 Cheniere Energy, Inc.*..................... 644 2,409 Clayton Williams Energy, Inc.*............. 70 3,390 Clean Energy Fuels Corp.*.................. 288 2,218 Comstock Resources, Inc.*.................. 604 29,850 Concho Resources, Inc.*.................... 732 15,555 Contango Oil & Gas Co.*.................... 170 9,350 Crosstex Energy, Inc. ..................... 534 5,452 CVR Energy, Inc.*.......................... 306 1,215 Delek US Holdings, Inc. ................... 178 995 Delta Petroleum Corp.*..................... 822 7,727 Dht Maritime, Inc. ........................ 516 2,714 Double Eagle Petroleum Co.*................ 108 872 Endeavour International Corp.*............. 1,498 1,123 Energy Partners, Ltd.*..................... 418 1,806 Energy XXI Bermuda Limtited................ 1,576 3,105 Evergreen Energy, Inc.*.................... 1,069 385 EXCO Resources, Inc.*...................... 1,972 18,123 FX Energy, Inc.*........................... 534 2,611 Gasco Energy, Inc.*........................ 1,238 990 General Maritime Corp. .................... 348 5,272 GeoGlobal Resources, Inc.*................. 504 932 GeoMet, Inc.*.............................. 246 726 Georesources, Inc.*........................ 80 1,195 GMX Resources, Inc.*....................... 218 8,229 Golar LNG, Ltd. ........................... 466 3,187 Goodrich Petroleum Corp.*.................. 298 8,272 Gran Tierra Energy, Inc.*.................. 1,368 3,461 GreenHunter Energy, Inc.*.................. 58 519 Gulfport Energy Corp.*..................... 346 2,439 Harvest Natural Resources, Inc.*........... 466 3,956 Houston American Energy Corp. ............. 198 790 International Coal Group, Inc.*............ 1,676 7,844 James River Coal Co.*...................... 353 6,785 Knightsbridge Tankers, Ltd. ............... 228 4,083 McMoRan Exploration Co.*................... 792 11,238 Meridian Resource Corp.*................... 980 1,166 National Coal Corp.*....................... 366 1,570 Nordic American Tanker Shipping, Ltd. ..... 456 13,520 Northern Oil And Gas, Inc.*................ 278 1,515 Oilsands Quest, Inc.*...................... 2,318 3,825 Pacific Ethanol, Inc.*..................... 584 526 Panhandle Oil and Gas, Inc. -- Class A..... 98 2,450 Parallel Petroleum Corp.*.................. 546 2,189 Penn Virginia Corp. ....................... 546 20,295 Petroleum Development Corp.*............... 198 4,101 Petroquest Energy, Inc.*................... 574 5,711 PrimeEnergy Corp.*......................... 10 600 Quest Resource Corp.*...................... 366 156 RAM Energy Resources, Inc.*................ 614 755 Rentech, Inc.*............................. 2,190 1,621 Rex Energy Corp.*.......................... 218 1,478 Rosetta Resources, Inc.*................... 674 7,111 Ship Finance International, Ltd. .......... 556 7,589 Stone Energy Corp.*........................ 416 12,621 Swift Energy Co.*.......................... 406 13,024 Teekay Tankers Ltd. ....................... 178 2,163 Toreador Resources Corp.*.................. 220 1,628 Tri-Valley Corp.*.......................... 298 1,415 TXCO Resources, Inc.*...................... 466 2,442
See Notes to Financial Statements. ANNUAL REPORT 55 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Uranium Resources, Inc.*................... 646 $607 USEC, Inc.*................................ 1,466 6,055 Vaalco Energy, Inc.*....................... 782 4,145 Venoco, Inc.*.............................. 268 1,134 VeraSun Energy Corp.*...................... 1,296 661 Warren Resources, Inc.*.................... 772 4,084 Western Refining, Inc. .................... 396 2,641 Westmoreland Coal Co.*..................... 128 1,261 World Fuel Services Corp. ................. 378 8,101 ------------ TOTAL OIL, GAS & CONSUMABLE FUELS 403,910 ------------ PAPER & FOREST PRODUCTS 0.3% AbitibiBowater, Inc.*...................... 704 1,373 Buckeye Technologies, Inc.*................ 516 3,039 Deltic Timber Corp. ....................... 138 6,286 Glatfelter................................. 596 6,145 Kapstone Paper and Packaging Corp.*........ 238 1,140 Louisiana-Pacific Corp. ................... 1,358 6,518 Mercer International, Inc.*................ 396 1,109 Neenah Paper, Inc. ........................ 190 1,716 Schweitzer-Mauduit International, Inc. .... 208 3,478 Verso Paper Corp. ......................... 188 291 Wausau Paper Corp. ........................ 584 5,408 ------------ TOTAL PAPER & FOREST PRODUCTS 36,503 ------------ PERSONAL PRODUCTS 0.4% American Oriental Bioengineering, Inc.*.... 814 4,973 Chattem, Inc.*............................. 228 17,253 China Sky One Med, Inc.*................... 98 880 Elizabeth Arden, Inc.*..................... 318 5,498 Inter Parfums, Inc. ....................... 188 2,192 Mannatech, Inc. ........................... 208 834 Nu Skin Enterprises, Inc. -- Class A....... 654 8,430 Prestige Brands Holdings, Inc.*............ 446 3,082 Schiff Nutrition International, Inc.*...... 120 707 USANA Health Sciences, Inc.*............... 90 3,415 ------------ TOTAL PERSONAL PRODUCTS 47,264 ------------ PHARMACEUTICALS 1.2% Acura Pharmaceuticals, Inc.*............... 108 621 Adolor Corp.*.............................. 606 1,909 Akorn, Inc.*............................... 754 2,345 Alexza Pharmaceuticals, Inc.*.............. 316 901 Alpharma, Inc. -- Class A*................. 554 17,346 Ardea Biosciences, Inc.*................... 158 1,604 Auxilium Pharmaceuticals, Inc.*............ 544 10,689 Biodel, Inc.*.............................. 140 311 BioForm Medical, Inc.*..................... 288 590 BioMimetic Therapeutics, Inc.*............. 178 1,456 Cadence Pharmaceuticals, Inc.*............. 268 1,750 Caraco Pharmaceutical Laboratories, Ltd.*.. 148 1,505 Columbia Laboratories, Inc.*............... 616 967 Cypress Bioscience, Inc.*.................. 496 2,698 Depomed, Inc.*............................. 634 1,369 Discovery Laboratories, Inc.*.............. 1,278 2,339 Durect Corp.*.............................. 1,080 4,439 Inspire Pharmaceuticals, Inc.*............. 556 2,035 Javelin Pharmaceuticals, Inc.*............. 646 917 Jazz Pharmaceuticals, Inc.*................ 100 298 KV Pharmaceutical Co. -- Class A*.......... 436 7,412 MAP Pharmaceuticals, Inc.*................. 100 416 Medicines Co.(The)*........................ 684 11,922 Medicis Pharmaceutical Corp. -- Class A.... 744 10,617 MiddleBrook Pharmaceuticals, Inc.*......... 476 643 Noven Pharmaceuticals, Inc.*............... 328 3,690 Obagi Medical Products, Inc.*.............. 238 1,980 Optimer Pharmaceuticals, Inc.*............. 338 1,403 Pain Therapeutics, Inc.*................... 456 4,168 Par Pharmaceutical Cos., Inc.*............. 456 4,560 Pozen, Inc.*............................... 346 2,135 Questcor Pharmaceuticals, Inc.*............ 714 5,526 Salix Pharmaceuticals Ltd.*................ 634 5,833 Sucampo Pharmaceuticals, Inc. -- Class A*.. 120 987 Valeant Pharmaceuticals International*..... 922 17,306 Viropharma, Inc.*.......................... 922 11,562 Vivus, Inc.*............................... 912 5,554 XenoPort, Inc.*............................ 328 13,648 ------------ TOTAL PHARMACEUTICALS 165,451 ------------ REAL ESTATE INVESTMENT TRUSTS (REITS) 4.6% Acadia Realty Trust........................ 426 7,698 Agree Realty Corp. ........................ 100 2,007 Alexander's, Inc. ......................... 30 10,500 American Campus Communities, Inc. ......... 556 14,445 American Capital Agency Corp. ............. 130 2,418 Anthracite Capital, Inc. .................. 774 3,359 Anworth Mortgage Asset Corp. .............. 1,090 6,387 Arbor Realty Trust, Inc. .................. 188 677 Ashford Hospitality Trust, Inc. ........... 1,430 2,317 Associated Estates Realty Corp. ........... 188 1,534 BioMed Realty Trust, Inc. ................. 1,042 14,640 Capital Trust, Inc. -- Class A............. 218 1,722 CapLease, Inc. ............................ 594 4,010 Capstead Mortgage Corp. ................... 744 7,477 Care Investment Trust, Inc. ............... 178 1,990 Cedar Shopping Centers, Inc. .............. 506 4,837 Chimera Investment Corp. .................. 446 1,284 Cogdell Spencer, Inc. ..................... 158 1,896 Colonial Properties Trust.................. 624 6,577 Corporate Office Properties Trust.......... 548 17,037 Cousins Properties, Inc. .................. 574 8,312 DCT Industrial Trust, Inc. ................ 2,260 11,142 DiamondRock Hospitality Co. ............... 1,250 6,475 DuPont Fabros Technology, Inc. ............ 158 984 EastGroup Properties, Inc. ................ 328 10,981 Education Realty Trust, Inc. .............. 376 1,598 Entertainment Properties Trust............. 431 16,141 Equity Lifestyle Properties, Inc. ......... 268 11,253 Equity One, Inc. .......................... 426 7,442 Extra Space Storage, Inc. ................. 1,050 12,086 FelCor Lodging Trust, Inc. ................ 832 2,504 First Industrial Realty Trust, Inc. ....... 584 6,039 First Potomac Realty Trust................. 351 4,310 Franklin Street Properties Corp. .......... 782 9,251 Friedman, Billings, Ramsey Group, Inc. -- Class A*........................ 1,862 1,266 Getty Realty Corp. ........................ 228 4,439 Glimcher Realty Trust...................... 496 2,599 Gramercy Capital Corp. .................... 546 1,452 Hatteras Financial Corp. .................. 150 3,270 Healthcare Realty Trust, Inc. ............. 774 19,776 Hersha Hospitality Trust................... 634 2,669 Highwoods Properties, Inc. ................ 842 20,898 Home Properties, Inc. ..................... 416 16,844
See Notes to Financial Statements. ANNUAL REPORT 56 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Inland Real Estate Corp. .................. 754 $8,641 Investors Real Estate Trust................ 754 7,450 JER Investors Trust, Inc. ................. 298 969 Kite Realty Group Trust.................... 268 1,629 LaSalle Hotel Properties................... 526 7,406 Lexington Realty Trust..................... 684 5,493 LTC Properties, Inc. ...................... 306 7,396 Maguire Properties, Inc. .................. 506 1,796 Medical Properties Trust, Inc. ............ 872 6,435 MFA Mortgage Investments, Inc. ............ 2,607 14,339 Mid-America Apartment Communities, Inc. ... 346 12,193 Mission West Properties.................... 258 2,234 Monmouth Real Estate Investment Corp. -- Class A........................ 258 1,883 National Health Investors, Inc. ........... 296 8,862 National Retail Properties, Inc. .......... 1,020 18,187 Newcastle Investment Corp. ................ 694 2,811 NorthStar Realty Finance Corp. ............ 734 4,221 Omega Healthcare Investors, Inc. .......... 1,080 16,276 One Liberty Properties, Inc. .............. 108 1,281 Parkway Properties, Inc. .................. 198 3,416 Pennsylvania Real Estate Investment Trust.. 466 5,895 Post Properties, Inc. ..................... 584 13,035 Potlatch Corp. ............................ 516 17,136 PS Business Parks, Inc. ................... 198 8,963 RAIT Financial Trust....................... 814 3,109 Ramco-Gershenson Properties................ 208 2,741 Realty Income Corp. ....................... 1,338 30,935 Redwood Trust, Inc. ....................... 436 6,645 Resource Capital Corp. .................... 278 1,376 Saul Centers, Inc. ........................ 128 4,684 Senior Housing Properties Trust............ 1,508 28,908 Sovran Self Storage, Inc. ................. 288 9,346 Strategic Hotels & Resorts, Inc. .......... 982 4,861 Sun Communities, Inc. ..................... 218 3,279 Sunstone Hotel Investors, Inc. ............ 674 4,415 Tanger Factory Outlet Centers.............. 416 15,047 U-Store-It Trust........................... 654 4,486 Universal Health Realty Income Trust....... 158 5,484 Urstadt Biddle Properties, Inc- Class A.... 276 4,521 Washington Real Estate Investment Trust.... 687 20,596 Winthrop Realty Trust...................... 734 1,879 ------------ TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 624,802 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2% Avatar Holdings, Inc.*..................... 80 2,716 Consolidated-Tomoka Land Co. .............. 70 2,583 Forestar Real Estate Group, Inc.*.......... 466 4,077 FX Real Estate and Entertainment, Inc.*.... 138 95 Grubb & Ellis Co. ......................... 456 698 Maui Land & Pineapple Co., Inc.*........... 60 930 Meruelo Maddux Properties, Inc.*........... 564 553 Stratus Properties, Inc.*.................. 80 1,960 Tejon Ranch Co.*........................... 148 4,301 Thomas Properties Group, Inc. ............. 316 2,196 ------------ TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 20,109 ------------ ROAD & RAIL 0.7% Amerco, Inc.*.............................. 120 5,431 Arkansas Best Corp. ....................... 298 8,699 Celadon Group, Inc.*....................... 288 3,079 Dollar Thrifty Automotive Group*........... 286 463 Genesee & Wyoming, Inc. -- Class A*........ 406 13,540 Heartland Express, Inc. ................... 734 11,260 Knight Transportation, Inc. ............... 754 11,989 Marten Transport, Ltd.*.................... 198 3,639 Old Dominion Freight Line, Inc.*........... 366 11,104 Patriot Transportation Holding, Inc.*...... 20 1,400 Saia, Inc.*................................ 178 1,889 Universal Truckload Services, Inc.*........ 80 1,222 Werner Enterprises, Inc. .................. 564 11,066 YRC Worldwide, Inc.*....................... 754 3,453 ------------ TOTAL ROAD & RAIL 88,234 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.5% Actel Corp.*............................... 336 4,062 Advanced Analogic Technologies, Inc.*...... 604 1,818 Advanced Energy Industries, Inc.*.......... 436 4,652 Amkor Technology, Inc.*.................... 1,438 5,838 Anadigics, Inc.*........................... 824 1,450 Applied Micro Circuits Corp.*.............. 852 4,354 Asyst Technologies, Inc.*.................. 654 412 Atheros Communications, Inc.*.............. 782 14,053 ATMI, Inc.*................................ 426 5,180 AuthenTec, Inc.*........................... 328 617 Axcelis Technologies, Inc.*................ 1,348 593 Brooks Automation, Inc.*................... 834 5,713 Cabot Microelectronics Corp.*.............. 308 8,849 Cavium Networks, Inc.*..................... 398 5,071 Ceva, Inc.*................................ 268 2,278 Cirrus Logic, Inc.*........................ 853 4,896 Cohu, Inc. ................................ 306 4,327 Cymer, Inc.*............................... 398 9,739 Diodes, Inc.*.............................. 378 3,735 DSP Group, Inc.*........................... 318 2,003 Eagle Test Systems, Inc.*.................. 180 2,725 Emcore Corp.*.............................. 970 3,453 Entegris, Inc.*............................ 1,506 4,051 Entropic Communications, Inc.*............. 120 127 Exar Corp.*................................ 496 3,313 FEI Co.*................................... 485 10,190 Formfactor, Inc.*.......................... 644 11,219 Hittite Microwave Corp.*................... 258 8,455 IXYS Corp. ................................ 318 2,525 Kopin Corp.*............................... 912 2,116 Kulicke & Soffa Industries, Inc.*.......... 704 2,070 Lattice Semiconductor Corp.*............... 1,517 2,852 LTX -- Credence Corp.*..................... 1,654 1,025 Mattson Technology, Inc.*.................. 654 1,713 Micrel, Inc. .............................. 654 4,807 Microsemi Corp.*........................... 1,040 22,610 Microtune, Inc.*........................... 714 1,785 MIPS Technologies, Inc.*................... 584 1,629 MKS Instruments, Inc.*..................... 654 12,132 Monolithic Power Systems, Inc.*............ 346 5,879 Netlogic Microsystems, Inc.*............... 228 4,815 NVE Corp.*................................. 60 1,695 OmniVision Technologies, Inc.*............. 674 5,453 Pericom Semiconductor Corp.*............... 288 2,246 Photronics, Inc.*.......................... 554 382 PLX Technology, Inc.*...................... 368 1,266 PMC -- Sierra, Inc.*....................... 2,884 13,497 Power Integrations, Inc. .................. 398 8,354 RF Micro Devices, Inc.*.................... 3,470 6,905
See Notes to Financial Statements. ANNUAL REPORT 57 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Rubicon Technology, Inc.*.................. 178 $947 Rudolph Technologies, Inc.*................ 406 1,360 Semitool, Inc.*............................ 298 1,761 Semtech Corp.*............................. 814 9,866 Sigma Designs, Inc.*....................... 348 3,859 Silicon Image, Inc.*....................... 970 4,433 Silicon Storage Technology, Inc.*.......... 1,100 3,465 Sirf Technology Holdings, Inc.*............ 802 754 Skyworks Solutions, Inc.*.................. 2,150 15,330 Spansion, Inc. -- Class A*................. 1,684 1,044 Standard Microsystems Corp.*............... 298 5,367 Supertex, Inc.*............................ 148 3,570 Techwell, Inc.*............................ 200 1,752 Tessera Technologies, Inc.*................ 636 10,990 Transmeta Corp.*........................... 158 2,583 Trident Microsystems, Inc.*................ 804 1,455 TriQuint Semiconductor, Inc.*.............. 1,892 8,476 Ultra Clean Holdings*...................... 258 779 Ultratech, Inc.*........................... 308 4,645 Veeco Instruments, Inc.*................... 418 3,235 Volterra Semiconductor Corp.*.............. 336 3,172 Zoran Corp.*............................... 684 5,568 ------------ TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 333,340 ------------ SOFTWARE 3.1% ACI Worldwide, Inc.*....................... 456 6,247 Actuate Corp.*............................. 794 2,255 Advent Software, Inc.*..................... 218 4,085 American Software, Inc. -- Class A......... 298 1,356 ArcSight, Inc.*............................ 90 532 Blackbaud, Inc. ........................... 586 8,907 Blackboard, Inc.*.......................... 406 9,939 Bottomline Technologies, Inc.*............. 288 2,269 Callidus Software, Inc.*................... 396 1,338 Commvault Systems, Inc.*................... 564 6,035 Concur Technologies, Inc.*................. 566 14,280 Deltek, Inc.*.............................. 168 875 DemandTec, Inc.*........................... 258 1,860 Digimarc Corp.*............................ 40 400 Double-Take Software, Inc.*................ 228 1,687 Ebix, Inc.*................................ 80 2,034 Entrust, Inc.*............................. 812 1,137 Epicor Software Corp.*..................... 782 5,513 EPIQ Systems, Inc.*........................ 466 6,333 Fair Isaac Corp. .......................... 644 10,040 FalconStor Software, Inc.*................. 506 1,523 Guidance Software, Inc.*................... 120 342 i2 Technologies, Inc.*..................... 208 2,964 Informatica Corp.*......................... 1,170 16,439 Interactive Intelligence, Inc.*............ 180 1,323 Jack Henry & Associates, Inc. ............. 990 18,820 JDA Software Group, Inc.*.................. 338 4,827 Kenexa Corp.*.............................. 298 2,655 Lawson Software, Inc.*..................... 1,556 8,278 Macrovision Solutions Corp.*............... 1,090 12,077 Magma Design Automation, Inc.*............. 584 1,524 Manhattan Associates, Inc.*................ 326 5,480 Mentor Graphics Corp.*..................... 1,198 8,793 MICROS Systems, Inc.*...................... 1,072 18,256 MicroStrategy, Inc. -- Class A*............ 120 4,724 Midway Games, Inc.*........................ 148 132 Monotype Imaging Holdings, Inc.*........... 198 1,348 MSC.Software Corp.*........................ 594 5,108 Net 1 UEPS Technologies, Inc.*............. 594 8,316 Netscout Systems, Inc.*.................... 386 3,713 NetSuite, Inc.*............................ 90 888 OpenTV Corp. -- Class A*................... 1,148 1,527 Opnet Technologies, Inc.*.................. 178 2,248 Parametric Technology Corp.*............... 1,516 19,693 Pegasystems, Inc. ......................... 188 2,459 Phoenix Technologies Ltd.*................. 366 1,618 Progress Software Corp.*................... 546 12,525 PROS Holdings, Inc.*....................... 168 902 QAD, Inc. ................................. 168 857 Quality Systems, Inc. ..................... 228 8,776 Quest Software, Inc.*...................... 952 12,614 Radiant Systems, Inc.*..................... 366 1,929 Renaissance Learning, Inc. ................ 128 1,746 Secure Computing Corp.*.................... 694 3,928 Smith Micro Software, Inc.*................ 398 2,488 Solera Holdings, Inc.*..................... 684 17,025 Sonic Solutions, Inc.*..................... 288 588 Sourcefire, Inc.*.......................... 266 1,686 SPSS, Inc.*................................ 238 5,560 SuccessFactors, Inc.*...................... 318 2,541 Sybase, Inc.*.............................. 1,042 27,748 Symyx Technologies*........................ 446 1,967 Synchronoss Technologies, Inc.*............ 288 2,238 Take-Two Interactive Software, Inc. ....... 1,012 12,002 Taleo Corp. Class A*....................... 346 4,775 TeleCommunication Systems, Inc. -- Class A*...................................... 446 3,069 THQ, Inc.*................................. 882 6,571 TIBCO Software, Inc.*...................... 2,458 12,659 Tivo, Inc.*................................ 1,348 9,261 Tyler Technologies, Inc.*.................. 504 6,849 Ultimate Software Group, Inc.*............. 326 4,346 Unica Corp.*............................... 188 972 Vasco Data Security International, Inc.*... 356 4,034 Wind River Systems, Inc.*.................. 952 8,321 ------------ TOTAL SOFTWARE 420,174 ------------ SPECIALTY RETAIL 2.2% Aaron Rents, Inc. -- Class B.............. 596 14,775 Aeropostale, Inc.*......................... 882 21,353 America's Car-Mart, Inc.*.................. 130 2,123 Asbury Automotive Group, Inc. ............. 418 1,359 Bebe Stores, Inc. ......................... 506 4,483 Big 5 Sporting Goods Corp. ................ 288 1,809 Blockbuster, Inc. -- Class A*.............. 2,310 3,511 Borders Group, Inc. ....................... 794 2,692 Brown Shoe Co., Inc. ...................... 556 5,860 Buckle, Inc.(The).......................... 434 11,418 Build-A-Bear Workshop, Inc.*............... 218 1,134 Cabela's, Inc.*............................ 516 4,102 Cache, Inc.*............................... 148 531 Casual Male Retail Group, Inc.*............ 494 939 Cato Corp. -- Class A...................... 366 5,680 Charlotte Russe Holding, Inc.*............. 278 2,349 Charming Shoppes, Inc.*.................... 1,496 1,646 Chico's FAS, Inc.*......................... 2,328 7,915 Children's Place Retail Stores, Inc.(The)*.............................. 308 10,296 Christopher & Banks Corp. ................. 466 2,433 Circuit City Stores, Inc. ................. 2,129 532 Citi Trends, Inc.*......................... 188 3,145
See Notes to Financial Statements. ANNUAL REPORT 58 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (continued) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) Coldwater Creek, Inc.*..................... 752 $2,700 Collective Brands, Inc.*................... 842 10,769 Conn's, Inc.*.............................. 128 1,734 Dress Barn, Inc.*.......................... 594 5,679 DSW, Inc. -- Class A*...................... 178 2,302 Finish Line, Inc. -- Class A............... 564 5,397 Genesco, Inc.*............................. 256 6,351 Group 1 Automotive, Inc. .................. 306 3,075 Gymboree Corp.*............................ 376 9,723 Haverty Furniture Cos., Inc. .............. 238 2,342 hhgregg, Inc.*............................. 168 921 Hibbett Sports, Inc.*...................... 376 6,697 Hot Topic, Inc.*........................... 576 3,732 J. Crew Group, Inc.*....................... 556 11,259 Jo-Ann Stores, Inc.*....................... 336 6,438 Jos. A. Bank Clothiers, Inc.*.............. 238 6,062 Lumber Liquidators, Inc.*.................. 120 1,000 MarineMax, Inc.*........................... 218 506 Men's Wearhouse, Inc.(The)................. 684 10,458 Midas, Inc.*............................... 180 2,345 Monro Muffler, Inc. ....................... 218 4,694 New York & Co, Inc.*....................... 308 869 Pacific Sunwear of California, Inc.*....... 863 2,951 PEP Boys-Manny Moe & Jack.................. 556 2,680 Pier 1 Imports, Inc.*...................... 1,170 1,615 Rent-A-Center, Inc.*....................... 882 12,877 Rex Stores Corp.*.......................... 110 977 Sally Beauty Holdings, Inc.*............... 1,240 6,299 Shoe Carnival, Inc.*....................... 118 1,653 Sonic Automotive, Inc. -- Class A.......... 346 1,775 Stage Stores, Inc. ........................ 506 3,901 Stein Mart, Inc. .......................... 336 722 Syms Corp.*................................ 88 924 Systemax, Inc. ............................ 148 2,096 Talbots, Inc. ............................. 326 3,198 Tractor Supply Co.*........................ 436 18,120 Tween Brands, Inc.*........................ 328 2,795 Ulta Salon Cosmetics & Fragrance, Inc.*.... 268 2,364 Wet Seal, Inc.(The) -- Class A*............ 1,210 3,557 Zale Corp.*................................ 426 7,268 Zumiez, Inc.*.............................. 258 2,518 ------------ TOTAL SPECIALTY RETAIL 293,428 ------------ TEXTILES, APPAREL & LUXURY GOODS 1.3% American Apparel, Inc.*.................... 446 2,623 Carter's, Inc.*............................ 744 15,803 Cherokee, Inc. ............................ 100 2,065 Columbia Sportswear Co. ................... 160 5,899 Crocs, Inc.*............................... 1,100 2,761 Deckers Outdoor Corp.*..................... 170 14,426 FGX International Holdings, Ltd.*.......... 178 1,958 Fossil, Inc.*.............................. 596 10,817 Fuqi Intl, Inc.*........................... 128 1,013 G-III Apparel Group, Ltd.*................. 178 2,458 Iconix Brand Group, Inc.*.................. 762 8,298 K-Swiss, Inc. -- Class A................... 338 5,114 Kenneth Cole Productions, Inc. -- Class A.. 118 1,567 Lululemon Athletica, Inc.*................. 238 3,373 Maidenform Brands, Inc.*................... 298 3,272 Movado Group, Inc. ........................ 208 3,164 Oxford Industries, Inc. ................... 188 2,532 Perry Ellis International, Inc.*........... 158 1,547 Quiksilver, Inc.*.......................... 1,664 4,310 Skechers U.S.A., Inc. -- Class A*.......... 436 5,921 Steven Madden, Ltd.*....................... 228 4,966 Timberland Co. -- Class A*................. 634 7,671 True Religion Apparel, Inc.*............... 228 3,819 Under Armour, Inc. -- Class A*............. 436 11,336 Unifi, Inc.*............................... 594 2,851 Unifirst Corp. ............................ 188 6,134 Volcom, Inc.*.............................. 238 3,077 Warnaco Group, Inc.*....................... 604 18,005 Weyco Group, Inc. ......................... 98 2,724 Wolverine World Wide, Inc. ................ 654 15,369 ------------ TOTAL TEXTILES, APPAREL & LUXURY GOODS 174,873 ------------ THRIFTS & MORTGAGE FINANCE 1.4% Abington Bancorp, Inc. .................... 326 3,374 Anchor BanCorp Wisconsin, Inc. ............ 248 1,414 Bank Mutual Corp. ......................... 634 7,310 BankFinancial Corp. ....................... 258 3,145 Beneficial Mutual Bancorp, Inc.*........... 436 5,166 Berkshire Hills Bancorp, Inc. ............. 155 4,035 Brookline Bancorp, Inc. ................... 764 8,939 Brooklyn Fed Bancorp, Inc. ................ 48 696 Clifton Savings Bancorp, Inc. ............. 138 1,504 Corus Bankshares, Inc. .................... 496 1,091 Danvers Bancorp, Inc. ..................... 238 2,923 Dime Community Bancshares.................. 308 5,143 Doral Financial Corp.*..................... 70 654 Downey Financial Corp. .................... 268 429 Encore Bancshares, Inc.*................... 88 1,469 ESSA Bancorp, Inc. ........................ 228 3,160 Federal Agricultural Mortgage Corp. -- Class C........................ 128 742 First Financial Holdings, Inc. ............ 158 3,429 First Financial Northwest.................. 298 2,435 First Niagara Financial Group, Inc. ....... 1,548 24,412 First Place Financial Corp. ............... 228 1,566 FirstFed Financial Corp.*.................. 178 1,593 Flagstar Bancorp, Inc. .................... 684 1,300 Flushing Financial Corp. .................. 278 4,323 Fox Chase Bancorp, Inc.*................... 80 952 Guaranty Financial Group, Inc.*............ 494 1,003 Home Federal Bancorp Inc/ID................ 88 1,020 Kearny Financial Corp. .................... 238 2,744 Meridian Interstate Bancorp, Inc.*......... 138 1,339 NASB Financial, Inc. ...................... 48 1,440 NewAlliance Bancshares, Inc. .............. 1,428 19,706 Northwest Bancorp, Inc. ................... 228 6,042 OceanFirst Financial Corp. ................ 118 1,958 Ocwen Financial Corp.*..................... 466 3,122 Oritani Financial Corp.*................... 170 2,904 PMI Group, Inc.(The)....................... 1,070 2,664 Provident Financial Services, Inc. ........ 784 11,493 Provident New York Bancorp................. 526 6,333 Radian Group, Inc. ........................ 1,060 3,816 Rockville Financial, Inc. ................. 118 1,535 Roma Financial Corp. ...................... 118 1,717 TrustCo Bank Corp. ........................ 1,000 12,170 United Community Financial Corp. .......... 346 1,623 United Financial Bancorp, Inc. ............ 238 3,33224 ViewPoint Financial Group.................. 148 2,516 Waterstone Financial Inc.*................. 90 742
See Notes to Financial Statements. ANNUAL REPORT 59 RYDEX 2x RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------------- COMMON STOCKS (CONCLUDED) Westfield Financial, Inc. ................. 416 $4,306 WSFS Financial Corp. ...................... 80 3,830 ------------ TOTAL THRIFTS & MORTGAGE FINANCE 188,559 ------------ TOBACCO 0.2% Alliance One International, Inc.*.......... 1,170 3,908 Star Scientific, Inc.*..................... 872 2,773 Universal Corp. ........................... 336 13,302 Vector Group, Ltd. ........................ 436 7,434 ------------ TOTAL TOBACCO 27,417 ------------ TRADING COMPANIES & DISTRIBUTORS 0.5% Aceto Corp. ............................... 326 2,722 Aircastle Ltd. ............................ 614 4,267 Applied Industrial Technologies, Inc. ..... 556 11,226 Beacon Roofing Supply, Inc.*............... 584 7,989 DXP Enterprises, Inc.*..................... 98 1,368 H&E Equipment Services, Inc.*.............. 218 1,242 Houston Wire & Cable Co. .................. 238 2,742 Interline Brands, Inc.*.................... 426 4,533 Kaman Corp. -- Class A..................... 336 8,578 Lawson Products, Inc. ..................... 58 1,728 RSC Holdings, Inc.*........................ 626 4,595 Rush Enterprises, Inc. -- Class A*......... 446 4,179 TAL International Group, Inc. ............. 188 3,113 Textainer Group Holdings, Ltd. ............ 128 1,412 Watsco, Inc. .............................. 308 12,656 ------------ TOTAL TRADING COMPANIES & DISTRIBUTORS 72,350 ------------ TRANSPORTATION INFRASTRUCTURE 0.0%(A) CAI International, Inc.*................... 98 776 ------------ TOTAL TRANSPORTATION INFRASTRUCTURE 776 ------------ WATER UTILITIES 0.3% American States Water Co. ................. 228 7,800 Cadiz, Inc.*............................... 158 2,198 California Water Service Group............. 258 9,690 Connecticut Water Service, Inc. ........... 110 2,915 Consolidated Water Co., Ltd. .............. 188 2,668 Middlesex Water Co. ....................... 178 3,069 SJW Corp. ................................. 170 4,726 Southwest Water Co. ....................... 326 2,598 ------------ TOTAL WATER UTILITIES 35,664 ------------ WIRELESS TELECOMMUNICATION SERVICES 0.2% Centennial Communications Corp.*........... 892 3,175 FiberTower Corp.*.......................... 1,586 1,158 ICO Global Communications Holdings, Ltd.*.. 1,368 2,244 iPCS, Inc.*................................ 228 3,721 Syniverse Holdings, Inc.*.................. 674 12,671 TerreStar Corp.*........................... 764 619 USA Mobility, Inc.*........................ 308 2,972 Virgin Mobile USA, Inc. -- Class A*........ 385 381 ------------ TOTAL WIRELESS TELECOMMUNICATION SERVICES 26,941 ------------ TOTAL COMMON STOCKS (Cost $11,813,050) 10,802,259 ------------ FACE AMOUNT ------------------------------------------------------------------------- REPURCHASE AGREEMENTS 11.7% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $1,572,004 on 11/03/08 collateralized by $1,715,000 FHLMC at 5.625% due 11/23/35 with a value of $1,603,525.............. $1,572,000 $1,572,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $1,572,000) 1,572,000 ------------ TOTAL INVESTMENTS 92.1% (Cost $13,385,050) 12,374,259 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--7.9% 1,067,244 ------------ NET ASSETS--100.0% $13,441,503 ------------------------------------------------------------------------- UNREALIZED CONTRACTS LOSS ------------------------------------------------------------------------- FUTURES CONTRACTS PURCHASED December 2008 Russell 2000 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $15,984,720)......... 298 $(1,424,665) -------------------------------------------------------------------------
* Non-Income Producing Security. (a) Amount represents less than 0.05% of net assets. FHLMC--Federal Home Loan Mortgage Corporation See Notes to Financial Statements. ANNUAL REPORT 60 RYDEX INVERSE 2X RUSSELL 2000 ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ------------------------------------------------------------------------------ REPURCHASE AGREEMENTS 88.5% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $14,613,037 on 11/03/08 collateralized by $15,945,000 FHLMC at 5.625% due 11/23/35 with a value of $14,908,575..................................... $14,613,000 $14,613,000 ----------- TOTAL REPURCHASE AGREEMENTS (Cost $14,613,000) 14,613,000 ----------- TOTAL INVESTMENTS 88.5% (Cost $14,613,000) 14,613,000 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--11.5% 1,905,147 ----------- NET ASSETS--100.0% $16,518,147 ------------------------------------------------------------------------------
UNREALIZED CONTRACTS LOSS -------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2008 Russell 2000 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $24,138,000).................................... 450 $(2,227,460) -----------
UNITS ----------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston January 2009 Russell 2000 Index Swap, Terminating 01/27/09 (Notional Market Value $9,108,293)*....................... 16,945 $(1,755,839) -----------------------------------------------------------------------
* Price return based on S&P Russell 2000 Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation See Notes to Financial Statements. ANNUAL REPORT 61 RYDEX 2X S&P SELECT SECTOR ENERGY ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------- COMMON STOCKS 82.2% ENERGY EQUIPMENT & SERVICES 14.9% Baker Hughes, Inc. ........................ 1,180 $41,241 BJ Services Co. ........................... 1,500 19,275 Cameron International Corp.*............... 660 16,012 ENSCO International, Inc. ................. 430 16,344 Halliburton Co. ........................... 3,180 62,932 Nabors Industries, Ltd.*................... 1,390 19,988 National-Oilwell Varco, Inc.*.............. 2,000 59,780 Noble Corp. ............................... 1,360 43,806 Rowan Cos., Inc. .......................... 940 17,052 Schlumberger, Ltd. ........................ 2,590 133,773 Smith International, Inc. ................. 650 22,412 Transocean, Inc.*.......................... 1,220 100,443 Weatherford International, Ltd.*........... 2,930 49,458 ---------- TOTAL ENERGY EQUIPMENT & SERVICES 602,516 ---------- OIL, GAS & CONSUMABLE FUELS 67.3% Anadarko Petroleum Corp. .................. 1,840 64,952 Apache Corp. .............................. 1,300 107,029 Cabot Oil & Gas Corp. ..................... 310 8,702 Chesapeake Energy Corp. ................... 2,440 53,607 Chevron Corp. ............................. 6,410 478,186 ConocoPhillips............................. 4,820 250,736 CONSOL Energy, Inc. ....................... 1,140 35,785 Devon Energy Corp. ........................ 1,630 131,802 El Paso Corp. ............................. 3,470 33,659 EOG Resources, Inc. ....................... 1,040 84,157 Exxon Mobil Corp. ......................... 10,080 747,130 Hess Corp. ................................ 1,370 82,488 Marathon Oil Corp. ........................ 2,600 75,660 Massey Energy Co. ......................... 250 5,773 Murphy Oil Corp. .......................... 970 49,121 Noble Energy, Inc. ........................ 520 26,946 Occidental Petroleum Corp. ................ 2,830 157,178 Peabody Energy Corp. ...................... 820 28,298 Pioneer Natural Resources Co. ............. 360 10,019 Range Resources Corp. ..................... 470 19,843 Southwestern Energy Co.*................... 1,030 36,689 Spectra Energy Corp. ...................... 1,850 35,760 Sunoco, Inc. .............................. 610 18,605 Tesoro Corp. .............................. 420 4,061 Valero Energy Corp. ....................... 1,880 38,690 Williams Cos., Inc. ....................... 2,490 52,215 XTO Energy, Inc. .......................... 2,310 83,044 ---------- TOTAL OIL, GAS & CONSUMABLE FUELS 2,720,135 ---------- TOTAL COMMON STOCKS (Cost $3,229,632) 3,322,651 ---------- FACE MARKET AMOUNT VALUE --------------------------------------------------------------------- REPURCHASE AGREEMENTS 4.9% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $199,001 on 11/03/08 collateralized by $220,000 FHLMC at 5.625% due 11/23/35 with a value of $205,700................ $199,000 $199,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $199,000) 199,000 ---------- TOTAL INVESTMENTS 87.1% (Cost $3,428,632) 3,521,651 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--12.9% 522,144 ---------- NET ASSETS--100.0% $4,043,795 --------------------------------------------------------------------- UNREALIZED UNITS GAIN --------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston January 2009 S&P Select Sector Energy Index Swap, Terminating 01/27/09 (Notional Market Value $4,700,893)**..................... 9,208 $652,119 ---------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Energy Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation See Notes to Financial Statements. ANNUAL REPORT 62 RYDEX INVERSE 2X S&P SELECT SECTOR ENERGY ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 89.8% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $5,025,013 on 11/03/08 collateralized by $5,535,000 FNMA at 5.500% due 07/14/28 with a value of $5,126,794.. $5,025,000 $5,025,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $5,025,000) 5,025,000 ---------- TOTAL INVESTMENTS 89.8% (Cost $5,025,000) 5,025,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--10.2% 570,539 ---------- NET ASSETS--100.0% $5,595,539 ----------------------------------------------------------------------------
UNREALIZED UNITS LOSS ----------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston January 2009 S&P Select Sector Energy Index Swap, Terminating 01/27/09 (Notional Market Value $11,113,287)*... 21,769 $(2,974,767) -----------------------------------------------------------------------
* Price return based on S&P Select Sector Energy Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association See Notes to Financial Statements. ANNUAL REPORT 63 RYDEX 2X S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------- COMMON STOCKS 81.3% CAPITAL MARKETS 13.9% American Capital, Ltd. .................... 1,410 $19,811 Ameriprise Financial, Inc. ................ 1,480 31,968 Bank of New York Mellon Corp. ............. 7,809 254,574 Charles Schwab Corp.(The).................. 6,349 121,393 E*TRADE Financial Corp.*................... 3,660 6,661 Federated Investors, Inc. -- Class B....... 600 14,520 Franklin Resources, Inc. .................. 1,040 70,720 Goldman Sachs Group, Inc.(The)............. 2,960 273,800 Invesco Ltd. .............................. 2,630 39,213 Janus Capital Group, Inc. ................. 1,090 12,797 Legg Mason, Inc. .......................... 970 21,524 Merrill Lynch & Co., Inc. ................. 10,429 193,875 Morgan Stanley............................. 7,549 131,881 Northern Trust Corp. ...................... 1,510 85,028 State Street Corp. ........................ 2,940 127,449 T. Rowe Price Group, Inc. ................. 1,760 69,590 ----------- TOTAL CAPITAL MARKETS 1,474,804 ----------- COMMERCIAL BANKS 18.4% BB&T Corp. ................................ 3,740 134,079 Comerica, Inc. ............................ 1,020 28,142 Fifth Third Bancorp........................ 3,930 42,640 First Horizon National Corp. .............. 1,370 16,317 Huntington Bancshares, Inc. ............... 2,490 23,530 KeyCorp.................................... 3,370 41,215 M&T Bank Corp. ............................ 530 42,983 Marshall & Ilsley Corp. ................... 1,770 31,913 National City Corp. ....................... 14,259 38,499 PNC Financial Services Group, Inc. ........ 2,360 157,341 Regions Financial Corp. ................... 4,730 52,456 SunTrust Banks, Inc. ...................... 2,410 96,737 U.S. Bancorp............................... 11,869 353,815 Wachovia Corp. ............................ 14,709 94,285 Wells Fargo & Co. ......................... 22,538 767,419 Zions Bancorp.............................. 780 29,726 ----------- TOTAL COMMERCIAL BANKS 1,951,097 ----------- CONSUMER FINANCE 3.7% American Express Co. ...................... 7,899 217,222 Capital One Financial Corp. ............... 2,560 100,147 Discover Financial Services................ 3,270 40,058 SLM Corp.*................................. 3,180 33,931 ----------- TOTAL CONSUMER FINANCE 391,358 ----------- DIVERSIFIED FINANCIAL SERVICES 25.4% Bank of America Corp. ..................... 34,157 825,575 CIT Group, Inc. ........................... 1,940 8,032 Citigroup, Inc. ........................... 37,087 506,237 CME Group, Inc. ........................... 460 129,789 IntercontinentalExchange, Inc.*............ 510 43,635 JPMorgan Chase & Co. ...................... 25,088 1,034,880 Leucadia National Corp. ................... 1,210 32,476 Moody's Corp. ............................. 1,340 34,304 Nasdaq OMX Group (The)*.................... 930 30,188 NYSE Euronext.............................. 1,810 54,626 ----------- TOTAL DIVERSIFIED FINANCIAL SERVICES 2,699,742 ----------- INSURANCE 13.3% AFLAC, Inc. ............................... 3,240 143,467 Allstate Corp. ............................ 3,690 97,379 American International Group, Inc. ........ 18,318 34,987 Aon Corp. ................................. 1,890 79,947 Assurant, Inc. ............................ 810 20,639 Chubb Corp. ............................... 2,460 127,477 Cincinnati Financial Corp. ................ 1,110 28,849 Genworth Financial, Inc. -- Class A........ 2,950 14,278 Hartford Financial Services Group, Inc. ... 2,050 21,156 Lincoln National Corp. .................... 1,750 30,170 Loews Corp. ............................... 2,470 82,029 Marsh & McLennan Cos., Inc. ............... 3,490 102,327 MBIA, Inc. ................................ 1,330 13,074 MetLife, Inc. ............................. 5,190 172,412 Principal Financial Group, Inc. ........... 1,770 33,612 Progressive Corp. ......................... 4,600 65,642 Prudential Financial, Inc. ................ 2,910 87,300 Torchmark Corp. ........................... 590 24,644 Travelers Cos., Inc.(The).................. 4,020 171,051 Unum Group................................. 2,350 37,013 XL Capital, Ltd. -- Class A................ 2,130 20,661 ----------- TOTAL INSURANCE 1,408,114 ----------- REAL ESTATE INVESTMENT TRUSTS (REITS) 5.8% Apartment Investment & Management Co. -- Class A.......................... 580 8,485 AvalonBay Communities, Inc. ............... 520 36,930 Boston Properties, Inc. ................... 820 58,122 Developers Diversified Realty Corp. ....... 820 10,799 Equity Residential......................... 1,850 64,621 General Growth Properties, Inc. ........... 1,550 6,417 HCP, Inc. ................................. 1,710 51,180 Host Hotels & Resorts, Inc. ............... 3,540 36,604 Kimco Realty Corp. ........................ 1,550 34,999 Plum Creek Timber Co., Inc. ............... 1,170 43,618 ProLogis................................... 1,790 25,060 Public Storage, Inc. ...................... 850 69,275 Simon Property Group, Inc. ................ 1,530 102,556 Vornado Realty Trust....................... 930 65,611 ----------- TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 614,277 ----------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1% CB Richard Ellis Group, Inc. -- Class A*... 1,170 8,202 ----------- TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 8,202 ----------- THRIFTS & MORTGAGE FINANCE 0.7% Hudson City Bancorp, Inc. ................. 3,540 66,587 Sovereign Bancorp, Inc. ................... 3,700 10,730 ----------- TOTAL THRIFTS & MORTGAGE FINANCE 77,317 ----------- TOTAL COMMON STOCKS (Cost $8,948,092) 8,624,911 ----------- TOTAL INVESTMENTS 81.3% (Cost $8,948,092) 8,624,911 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--18.7% 1,985,359 ----------- NET ASSETS--100.0% $10,610,270 ------------------------------------------------------------------- UNREALIZED UNITS GAIN ------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston January 2009 S&P Select Sector Financial Index Swap, Terminating 01/27/09 (Notional Market Value $12,299,786)**.................... 79,343 $2,566,561 -------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Financial Index +/- financing at a variable rate. See Notes to Financial Statements. ANNUAL REPORT 64 RYDEX INVERSE 2X S&P SELECT SECTOR FINANCIAL ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 97.7% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $6,997,017 on 11/03/08 collateralized by $7,635,000 FHLMC at 5.625% due 11/23/35 with a value of $7,138,725.. $6,997,000 $6,997,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $6,997,000) 6,997,000 ---------- TOTAL INVESTMENTS 97.7% (Cost $6,997,000) 6,997,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--2.3% 166,806 ---------- NET ASSETS--100.0% $7,163,806 ----------------------------------------------------------------------------
UNREALIZED CONTRACTS GAIN/(LOSS) -------------------------------------------------------------------------- FUTURES CONTRACTS SOLD SHORT December 2008 S&P 500 Index E-Mini Futures Contracts (Aggregate Market Value of Contracts $485,375)....................................... 10 $1,387 ----------- UNITS -------------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston January 2009 S&P Select Sector Financial Index Swap, Terminating 01/27/09 (Notional Market Value $15,994,404)*... 103,176 $(3,320,090) --------------------------------------------------------------------------
* Price return based on S&P Select Sector Financial Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation See Notes to Financial Statements. ANNUAL REPORT 65 RYDEX 2X S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE ------------------------------------------------------------------ COMMON STOCKS 83.0% COMMUNICATIONS EQUIPMENT 11.2% Ciena Corp.*............................... 190 $1,826 Cisco Systems, Inc.*....................... 9,458 168,069 Corning, Inc. ............................. 2,559 27,714 Harris Corp. .............................. 230 8,268 JDS Uniphase Corp.*........................ 400 2,184 Juniper Networks, Inc.*.................... 890 16,679 Motorola, Inc. ............................ 3,689 19,810 QUALCOMM, Inc. ............................ 2,639 100,968 Tellabs, Inc.*............................. 760 3,222 ---------- TOTAL COMMUNICATIONS EQUIPMENT 348,740 ---------- COMPUTERS & PERIPHERALS 19.5% Apple, Inc.*............................... 1,420 152,778 Dell, Inc.*................................ 2,819 34,251 EMC Corp.*................................. 3,349 39,451 Hewlett-Packard Co. ....................... 3,919 150,019 International Business Machines Corp. ..... 2,169 201,652 Lexmark International, Inc. -- Class A*.... 160 4,133 NetApp, Inc.*.............................. 550 7,441 QLogic Corp.*.............................. 240 2,885 SanDisk Corp.*............................. 380 3,378 Sun Microsystems, Inc.*.................... 1,270 5,842 Teradata Corp.*............................ 310 4,771 ---------- TOTAL COMPUTERS & PERIPHERALS 606,601 ---------- DIVERSIFIED TELECOMMUNICATION SERVICES 13.4% AT&T, Inc. ................................ 9,438 252,655 CenturyTel, Inc. .......................... 180 4,520 Embarq Corp. .............................. 240 7,200 Frontier Communications Corp. ............. 550 4,186 Qwest Communications International, Inc. .. 2,519 7,204 Verizon Communications, Inc. .............. 4,579 135,859 Windstream Corp. .......................... 750 5,632 ---------- TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 417,256 ---------- ELECTRONIC EQUIPMENT & INSTRUMENTS 1.4% Agilent Technologies, Inc.*................ 590 13,092 Amphenol Corp. -- Class A.................. 290 8,308 Jabil Circuit, Inc. ....................... 380 3,196 Molex, Inc. ............................... 250 3,603 Tyco Electronics, Ltd. .................... 770 14,969 ---------- TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 43,168 ---------- INTERNET SOFTWARE & SERVICES 6.1% Akamai Technologies, Inc.*................. 300 4,314 eBay, Inc.*................................ 1,770 27,028 Google, Inc. -- Class A*................... 340 122,182 VeriSign, Inc.*............................ 330 6,996 Yahoo!, Inc.*.............................. 2,249 28,832 ---------- TOTAL INTERNET SOFTWARE & SERVICES 189,352 ---------- IT SERVICES 4.0% Affiliated Computer Services, Inc. -- Class A*...................................... 170 6,970 Automatic Data Processing, Inc. ........... 830 29,009 Cognizant Technology Solutions Corp. -- Class A*....................... 490 9,408 Computer Sciences Corp.*................... 250 7,540 Convergys Corp.*........................... 230 1,769 Fidelity National Information Services, Inc. ................................... 330 4,980 Fiserv, Inc.*.............................. 270 9,007 Mastercard, Inc. -- Class A................ 120 17,738 Paychex, Inc. ............................. 530 15,126 Total System Services, Inc. ............... 340 4,672 Unisys Corp.*.............................. 740 1,125 Western Union Co. ......................... 1,190 18,159 ---------- TOTAL IT SERVICES 125,503 ---------- OFFICE ELECTRONICS 0.4% Xerox Corp. ............................... 1,440 11,549 ---------- TOTAL OFFICE ELECTRONICS 11,549 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 9.6% Advanced Micro Devices, Inc.*.............. 1,070 3,745 Altera Corp. .............................. 510 8,848 Analog Devices, Inc. ...................... 480 10,253 Applied Materials, Inc. ................... 2,179 28,131 Broadcom Corp. -- Class A*................. 730 12,468 Intel Corp. ............................... 8,018 128,288 KLA-Tencor Corp. .......................... 290 6,743 Linear Technology Corp. ................... 370 8,392 LSI Corp.*................................. 1,120 4,312 MEMC Electronic Materials, Inc.*........... 380 6,984 Microchip Technology, Inc. ................ 310 7,635 Micron Technology, Inc.*................... 1,330 6,264 National Semiconductor Corp. .............. 340 4,478 Novellus Systems, Inc.*.................... 180 2,844 NVIDIA Corp.*.............................. 930 8,147 Teradyne, Inc.*............................ 330 1,683 Texas Instruments, Inc. ................... 2,119 41,448 Xilinx, Inc. .............................. 460 8,473 ---------- TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 299,136 ---------- SOFTWARE 16.3% Adobe Systems, Inc.*....................... 860 22,910 Autodesk, Inc.*............................ 370 7,885 BMC Software, Inc.*........................ 320 8,262 CA, Inc. .................................. 650 11,570 Citrix Systems, Inc.*...................... 310 7,989 Compuware Corp.*........................... 460 2,935 Electronic Arts, Inc.*..................... 520 11,846 Intuit, Inc.*.............................. 530 13,282 Microsoft Corp. ........................... 12,577 280,844 Novell, Inc.*.............................. 650 3,029 Oracle Corp.*.............................. 6,298 115,190 Salesforce.com, Inc.*...................... 180 5,573 Symantec Corp.*............................ 1,370 17,235 ---------- TOTAL SOFTWARE 508,550 ---------- WIRELESS TELECOMMUNICATION SERVICES 1.1% American Tower Corp. -- Class A*........... 640 20,678 Sprint Nextel Corp. ....................... 4,639 14,520 ---------- TOTAL WIRELESS TELECOMMUNICATION SERVICES 35,198 ---------- TOTAL COMMON STOCKS (Cost $3,414,499) 2,585,053 ---------- TOTAL INVESTMENTS 83.0% (Cost $3,414,499) 2,585,053 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--17.0% 530,245 ---------- NET ASSETS--100.0% $3,115,298 ------------------------------------------------------------------
See Notes to Financial Statements. ANNUAL REPORT 66 RYDEX 2X S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS (concluded) October 31, 2008 --------------------------------------------------------------------------------
UNREALIZED UNITS GAIN ------------------------------------------------------------------ EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston January 2009 S&P Select Sector Technology Index Swap, Terminating 01/27/09 (Notional Market Value $3,622,468)**..................... 21,838 $343,569 ------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Technology Index +/- financing at a variable rate. See Notes to Financial Statements. ANNUAL REPORT 67 RYDEX INVERSE 2X S&P SELECT SECTOR TECHNOLOGY ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 87.4% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $5,652,014 on 11/03/08 collateralized by $6,225,000 FNMA at 5.500% due 07/14/28 with a value of $5,765,906.. $5,652,000 $5,652,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $5,652,000) 5,652,000 ---------- TOTAL INVESTMENTS 87.4% (Cost $5,652,000) 5,652,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--12.6% 816,463 ---------- NET ASSETS--100.0% $6,468,463 ----------------------------------------------------------------------------
UNREALIZED UNITS LOSS ----------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston January 2009 S&P Select Sector Technology Index Swap, Terminating 01/27/09 (Notional Market Value $12,886,603)*... 77,686 $(1,879,566) -----------------------------------------------------------------------
* Price return based on S&P Select Sector Technology Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association See Notes to Financial Statements. ANNUAL REPORT 68 RYDEX 2X S&P SELECT SECTOR HEALTH CARE ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
MARKET SHARES VALUE --------------------------------------------------------------------- COMMON STOCKS 82.3% BIOTECHNOLOGY 11.8% Amgen, Inc.*............................... 3,930 $235,368 Biogen Idec, Inc.*......................... 1,100 46,805 Celgene Corp.*............................. 1,690 108,599 Genzyme Corp.*............................. 1,020 74,338 Gilead Sciences, Inc.*..................... 3,420 156,807 ---------- TOTAL BIOTECHNOLOGY 621,917 ---------- HEALTH CARE EQUIPMENT & SUPPLIES 14.1% Baxter International, Inc. ................ 2,370 143,361 Becton, Dickinson & Co. ................... 930 64,542 Boston Scientific Corp.*................... 5,620 50,749 C.R. Bard, Inc. ........................... 390 34,417 Covidien, Ltd. ............................ 1,860 82,379 Hospira, Inc.*............................. 590 16,414 Intuitive Surgical, Inc.*.................. 140 24,191 Medtronic, Inc. ........................... 4,210 169,789 St Jude Medical, Inc.*..................... 1,300 49,439 Stryker Corp. ............................. 930 49,718 Varian Medical Systems, Inc.*.............. 460 20,935 Zimmer Holdings, Inc.*..................... 850 39,465 ---------- TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 745,399 ---------- HEALTH CARE PROVIDERS & SERVICES 11.4% Aetna, Inc. ............................... 1,800 44,766 AmerisourceBergen Corp. ................... 610 19,075 Cardinal Health, Inc. ..................... 1,350 51,570 CIGNA Corp. ............................... 1,060 17,278 Coventry Health Care, Inc.*................ 550 7,255 DaVita, Inc.*.............................. 390 22,133 Express Scripts, Inc.*..................... 960 58,186 Humana, Inc.*.............................. 670 19,825 Laboratory Corp. of America Holdings*...... 410 25,211 McKesson Corp. ............................ 1,060 38,997 Medco Health Solutions, Inc.*.............. 1,930 73,243 Patterson Cos., Inc.*...................... 340 8,612 Quest Diagnostics, Inc. ................... 610 28,548 Tenet Healthcare Corp.*.................... 1,600 7,008 UnitedHealth Group, Inc. .................. 4,560 108,209 WellPoint, Inc.*........................... 1,950 75,796 ---------- TOTAL HEALTH CARE PROVIDERS & SERVICES 605,712 ---------- HEALTH CARE TECHNOLOGY 0.2% IMS Health, Inc. .......................... 710 10,181 ---------- TOTAL HEALTH CARE TECHNOLOGY 10,181 ---------- LIFE SCIENCES TOOLS & SERVICES 2.3% Applied Biosystems Inc. ................... 670 20,656 Millipore Corp.*........................... 230 11,935 PerkinElmer, Inc. ......................... 440 7,893 Thermo Fisher Scientific Inc.*............. 1,560 63,336 Waters Corp.*.............................. 370 16,206 ---------- TOTAL LIFE SCIENCES TOOLS & SERVICES 120,026 ---------- PHARMACEUTICALS 42.5% Abbott Laboratories........................ 4,850 267,478 Allergan, Inc. ............................ 1,170 46,414 Barr Pharmaceuticals, Inc.*................ 400 25,704 Bristol-Myers Squibb Co. .................. 7,390 151,865 Eli Lilly & Co. ........................... 3,720 125,810 Forest Laboratories, Inc.*................. 1,150 26,715 Johnson & Johnson.......................... 10,380 636,709 King Pharmaceuticals, Inc.*................ 990 8,702 Merck & Co., Inc. ......................... 7,960 246,362 Mylan Inc.*................................ 1,130 9,684 Pfizer, Inc. .............................. 25,030 443,281 Schering-Plough Corp. ..................... 6,100 88,389 Watson Pharmaceuticals, Inc.*.............. 410 10,730 Wyeth...................................... 4,980 160,256 ---------- TOTAL PHARMACEUTICALS 2,248,099 ---------- TOTAL COMMON STOCKS (Cost $4,876,484) 4,351,334 ---------- FACE AMOUNT --------------------------------------------------------------------- REPURCHASE AGREEMENTS 2.8% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $147,000 on 11/03/08 collateralized by $165,000 FHLMC at 5.625% due 11/23/35 with a value of $154,275................ $147,000 $147,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $147,000) 147,000 ---------- TOTAL INVESTMENTS 85.1% (Cost $5,023,484) 4,498,334 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--14.9% 785,229 ---------- NET ASSETS--100.0% $5,283,563 --------------------------------------------------------------------- UNREALIZED UNITS GAIN --------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS PURCHASED Credit Suisse First Boston January 2009 S&P Select Sector Health Care Index Swap, Terminating 01/27/09 (Notional Market Value $6,180,737)**..................... 22,908 $461,513 ---------------------------------------------------------------------
* Non-Income Producing Security. ** Price return based on S&P Select Sector Health Care Index +/- financing at a variable rate. FHLMC--Federal Home Loan Mortgage Corporation See Notes to Financial Statements. ANNUAL REPORT 69 RYDEX INVERSE 2X S&P SELECT SECTOR HEALTH CARE ETF SCHEDULE OF INVESTMENTS October 31, 2008 --------------------------------------------------------------------------------
FACE MARKET AMOUNT VALUE ---------------------------------------------------------------------------- REPURCHASE AGREEMENTS 88.8% State Street Bank & Trust Co., 0.030%, dated 10/31/08, to be repurchased at $7,442,019 on 11/03/08 collateralized by $8,200,000 FNMA at 5.500% due 07/14/28 with a value of $7,595,250.. $7,442,000 $7,442,000 ---------- TOTAL REPURCHASE AGREEMENTS (Cost $7,442,000) 7,442,000 ---------- TOTAL INVESTMENTS 88.8% (Cost $7,442,000) 7,442,000 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--11.2% 939,419 ---------- NET ASSETS--100.0% $8,381,419 ----------------------------------------------------------------------------
UNREALIZED UNITS LOSS ----------------------------------------------------------------------- EQUITY INDEX SWAP AGREEMENTS SOLD SHORT Credit Suisse First Boston January 2009 S&P Select Sector Health Care Index Swap, Terminating 01/27/09 (Notional Market Value $17,291,276)*................................... 64,087 $(1,728,947) -----------------------------------------------------------------------
* Price return based on S&P Select Sector Health Care Index +/- financing at a variable rate. FNMA--Federal National Mortgage Association See Notes to Financial Statements. ANNUAL REPORT 70 STATEMENTS OF ASSETS AND LIABILITIES October 31, 2008 --------------------------------------------------------------------------------
RYDEX 2X RYDEX RYDEX 2X RYDEX INVERSE S&P 500 INVERSE 2X S&P MIDCAP 2X S&P MIDCAP ETF S&P 500 ETF 400 ETF 400 ETF ------------ ------------ ----------- ------------- ASSETS Investments at Market Value*................. $ 93,707,346 $ -- $ 4,422,420 $ -- Repurchase Agreements........................ 12,688,000 44,251,000 -- 5,866,000 ------------ ------------ ----------- ----------- Total Investments............................ 106,395,346 44,251,000 4,422,420 5,866,000 ------------ ------------ ----------- ----------- Cash......................................... 3,724 341 28,573 317 Segregated Cash for Swaps.................... 1,000,000 8,700,000 206,600 1,691,000 Margin Deposit for Future Contracts.......... 13,770,900 14,553,000 437,400 523,800 Receivables: Investments Sold........................... 3,346 -- 46,644 -- Dividends.................................. 107,397 -- 2,230 -- Interest................................... 32 111 -- 15 Fund Shares Sold........................... -- -- 1,295,272 -- Variation Margin on Futures Contracts...... 1,281,709 -- 62,407 -- Equity Index Swap Settlement............... 846 -- 236,808 -- ------------ ------------ ----------- ----------- TOTAL ASSETS............................ 122,563,300 67,504,452 6,738,354 8,081,132 ------------ ------------ ----------- ----------- LIABILITIES Payables: Investments Purchased...................... 4,996,528 -- 1,256,169 -- Equity Index Swap Settlement............... -- 11,112 -- 1,407,173 Fund Shares Repurchased.................... 4,147,460 -- -- -- Variation Margin on Futures Contracts...... -- 1,334,089 -- 70,936 Accrued Management Fees.................... 55,419 53,694 2,159 6,912 ------------ ------------ ----------- ----------- TOTAL LIABILITIES....................... 9,199,407 1,398,895 1,258,328 1,485,021 ------------ ------------ ----------- ----------- NET ASSETS................................... $113,363,893 $ 66,105,557 $ 5,480,026 $ 6,596,111 ============ ============ =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.............................. $164,463,493 $ 53,470,609 $12,287,903 $ 5,811,212 Undistributed Net Investment Income.......... 81,221 -- -- -- Accumulated Net Realized Gain (Loss) on Investment Securities, Futures and Swaps... (34,328,244) 23,107,711 (6,419,390) 2,657,413 Net Unrealized Appreciation/Depreciation on Investment Securities and Futures.......... (16,852,577) (10,472,763) (388,487) (1,872,514) ------------ ------------ ----------- ----------- NET ASSETS................................... $113,363,893 $ 66,105,557 $ 5,480,026 $ 6,596,111 ============ ============ =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.................. 4,100,000 500,000 200,000 50,000 ============ ============ =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................. $ 27.65 $ 132.21 $ 27.40 $ 131.92 ============ ============ =========== =========== *Total Cost of Investments................... $120,502,291 $ 44,251,000 $ 5,196,509 $ 5,866,000 ============ ============ =========== ===========
See Notes to Financial Statements. ANNUAL REPORT 71 STATEMENTS OF ASSETS AND LIABILITIES (continued) October 31, 2008 --------------------------------------------------------------------------------
RYDEX RYDEX INVERSE RYDEX 2X RYDEX INVERSE 2X S&P 2X S&P RUSSELL 2X RUSSELL SELECT SECTOR SELECT SECTOR 2000 ETF 2000 ETF ENERGY ETF ENERGY ETF ----------- ------------- ------------- ------------- ASSETS Investments at Market Value*............. $10,802,259 $ -- $ 3,322,651 $ -- Repurchase Agreements.................... 1,572,000 14,613,000 199,000 5,025,000 ----------- ----------- ----------- ----------- Total Investments........................ 12,374,259 14,613,000 3,521,651 5,025,000 ----------- ----------- ----------- ----------- Cash..................................... -- 887 544 280 Segregated Cash for Swaps................ -- 1,895,100 163,000 3,556,230 Margin Deposit for Future Contracts...... 1,461,200 2,901,600 -- -- Receivables: Investments Sold....................... 47,138 -- -- -- Dividends.............................. 6,906 -- 2,416 -- Interest............................... 4 37 -- 12 Variation Margin on Futures Contracts.. 557,872 -- -- -- Equity Index Swap Settlement........... -- -- 653,460 -- ----------- ----------- ----------- ----------- TOTAL ASSETS........................ 14,447,379 19,410,624 4,341,071 8,581,522 ----------- ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased.................. 997,917 -- 296,036 -- Equity Index Swap Settlement........... -- 1,758,635 -- 2,981,264 Variation Margin on Futures Contracts.. -- 1,118,793 -- -- Overdraft.............................. 1,841 -- -- -- Accrued Management Fees................ 6,118 15,049 1,240 4,719 ----------- ----------- ----------- ----------- TOTAL LIABILITIES................... 1,005,876 2,892,477 297,276 2,985,983 ----------- ----------- ----------- ----------- NET ASSETS............................... $13,441,503 $16,518,147 $ 4,043,795 $ 5,595,539 =========== =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital.......................... $21,191,068 $16,104,875 $ 8,112,973 $ 4,246,174 Undistributed Net Investment Income...... 2,359 -- 983 -- Accumulated Net Realized Gain (Loss) on Investment Securities, Futures and Swaps.................................. (5,316,468) 4,396,571 (4,815,299) 4,324,132 Net Unrealized Appreciation/Depreciation on Investment Securities and Futures... (2,435,456) (3,983,299) 745,138 (2,974,767) ----------- ----------- ----------- ----------- NET ASSETS............................... $13,441,503 $16,518,147 $ 4,043,795 $ 5,595,539 =========== =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value.............. 450,000 150,000 200,000 50,000 =========== =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share............. $ 29.87 $ 110.12 $ 20.22 $ 111.91 =========== =========== =========== =========== *Total Cost of Investments............... $13,385,050 $14,613,000 $ 3,428,632 $ 5,025,000 =========== =========== =========== ===========
See Notes to Financial Statements. ANNUAL REPORT 72 STATEMENTS OF ASSETS AND LIABILITIES (continued) October 31, 2008 --------------------------------------------------------------------------------
RYDEX RYDEX INVERSE RYDEX RYDEX INVERSE 2X S&P 2X S&P 2X S&P 2X S&P SELECT SECTOR SELECT SECTOR SELECT SECTOR SELECT SECTOR FINANCIAL ETF FINANCIAL ETF TECHNOLOGY ETF TECHNOLOGY ETF ------------- ------------- -------------- -------------- ASSETS Investments at Market Value*.......... $ 8,624,911 $ -- $ 2,585,053 $ -- Repurchase Agreements................. -- 6,997,000 -- 5,652,000 ------------ ----------- ----------- ----------- Total Investments..................... 8,624,911 6,997,000 2,585,053 5,652,000 ------------ ----------- ----------- ----------- Cash.................................. 7,846,930 123 -- 957 Segregated Cash for Swaps............. 721,960 3,494,900 273,412 2,696,500 Receivables: Investments Sold.................... 2,062 -- -- -- Dividends receivable................ 22,935 -- 7,399 -- Interest............................ -- 17 -- 14 Variation Margin on Futures Contracts........................ -- 1,387 12,638 -- Equity Index Swap Settlement........ 2,570,865 -- 342,405 -- ------------ ----------- ----------- ----------- TOTAL ASSETS..................... 19,789,663 10,493,427 3,220,907 8,349,471 ------------ ----------- ----------- ----------- LIABILITIES Payables: Investments Purchased............... 489,525 -- 99,799 -- Equity Index Swap Settlement........ -- 3,324,406 -- 1,876,429 Fund Shares Repurchased............. 8,679,296 -- -- -- Overdraft........................... -- -- 3,709 -- Accrued Management Fees............. 10,572 5,215 2,101 4,579 ------------ ----------- ----------- ----------- TOTAL LIABILITIES................ 9,179,393 3,329,621 105,609 1,881,008 ------------ ----------- ----------- ----------- NET ASSETS............................ $ 10,610,270 $ 7,163,806 $ 3,115,298 $ 6,468,463 ============ =========== =========== =========== NET ASSETS CONSIST OF: Paid-in Capital....................... $ 26,556,387 $ 7,500,000 $ 7,500,000 $ 4,540,184 Undistributed Net Investment Income... 44,812 -- 4,645 -- Accumulated Net Realized Gain (Loss) on Investment Securities, Futures and Swaps........................... (18,234,309) 2,982,509 (3,903,470) 3,807,845 Net Unrealized Appreciation/Depreciation on Investment Securities and Futures... 2,243,380 (3,318,703) (485,877) (1,879,566) ------------ ----------- ----------- ----------- NET ASSETS............................ $ 10,610,270 $ 7,163,806 $ 3,115,298 $ 6,468,463 ============ =========== =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value........... 400,000 100,000 100,000 50,000 ============ =========== =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share.......... $ 26.53 $ 71.64 $ 31.15 $ 129.37 ============ =========== =========== =========== *Total Cost of Investments............ $ 8,948,092 $ 6,997,000 $ 3,414,499 $ 5,652,000 ============ =========== =========== ===========
See Notes to Financial Statements. ANNUAL REPORT 73 STATEMENTS OF ASSETS AND LIABILITIES (concluded) October 31, 2008 --------------------------------------------------------------------------------
RYDEX RYDEX INVERSE 2X S&P 2X S&P SELECT SECTOR SELECT SECTOR HEALTH CARE ETF HEALTH CARE ETF --------------- --------------- ASSETS Investments at Market Value*............................ $ 4,351,334 $ -- Repurchase Agreements................................... 147,000 7,442,000 ----------- ----------- Total Investments....................................... 4,498,334 7,442,000 ----------- ----------- Cash.................................................... 498 115 Segregated Cash for Swaps............................... 422,750 2,666,000 Receivables: Dividends receivable.................................. 4,792 -- Interest.............................................. -- 19 Equity Index Swap Settlement.......................... 458,539 -- ----------- ----------- TOTAL ASSETS....................................... 5,384,913 10,108,134 ----------- ----------- LIABILITIES Payables: Investments Purchased................................. 97,885 -- Equity Index Swap Settlement.......................... -- 1,721,049 Accrued Management Fees............................... 3,465 5,666 ----------- ----------- TOTAL LIABILITIES.................................. 101,350 1,726,715 ----------- ----------- NET ASSETS.............................................. $ 5,283,563 $ 8,381,419 =========== =========== NET ASSETS CONSIST OF: Paid-in Capital......................................... $ 7,500,000 $ 7,500,000 Undistributed Net Investment Income..................... 1,011 -- Accumulated Net Realized Gain (Loss) on Investment Securities, Futures and Swaps......................... (2,153,811) 2,610,366 Net Unrealized Appreciation/Depreciation on Investment Securities and Futures................................ (63,637) (1,728,947) ----------- ----------- NET ASSETS.............................................. $ 5,283,563 $ 8,381,419 =========== =========== Shares Outstanding (Unlimited Shares Authorized), No Par Value................................................. 100,000 100,000 =========== =========== Net Asset Value, Offering Price and Repurchase Price Per Share................................................. $ 52.84 $ 83.81 =========== =========== *Total Cost of Investments.............................. $ 5,023,484 $ 7,442,000 =========== ===========
See Notes to Financial Statements. ANNUAL REPORT 74 STATEMENTS OF OPERATIONS For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE RYDEX 2X RYDEX INVERSE S&P 500 2X S&P 500 S&P MIDCAP 2X S&P MIDCAP ETF* ETF* 400 ETF* 400 ETF* ------------ ------------- ----------- ------------- INVESTMENT INCOME Interest.............................. $ 76,662 $ 878,370 $ 24,759 $ 251,695 Dividends............................. 610,930 -- 74,048 -- ------------ ------------ ----------- ----------- Total Income....................... 687,592 878,370 98,807 251,695 ------------ ------------ ----------- ----------- EXPENSES Management Fee........................ 234,559 343,748 42,704 75,009 Trustee Fees.......................... 1,043 2,586 374 548 ------------ ------------ ----------- ----------- Total Expenses..................... 235,602 346,334 43,078 75,557 ------------ ------------ ----------- ----------- Net Investment Income................... 451,990 532,036 55,729 176,138 ------------ ------------ ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments........................... (6,444,138) -- (1,954,483) -- Futures Contracts..................... (23,003,009) 32,457,153 (578,526) 2,732,362 Swap Contracts........................ (4,887,927) 6,822,931 (3,891,506) 8,029,026 ------------ ------------ ----------- ----------- Net Realized Gain (Loss)........... (34,335,074) 39,280,084 (6,424,515) 10,761,388 Net Change in Unrealized Appreciation/Depreciation on: Investment Securities................. (14,106,945) -- (774,089) -- Futures Contracts..................... (2,745,632) (10,472,763) 149,000 (466,566) Swap Contracts........................ -- -- 236,602 (1,405,948) ------------ ------------ ----------- ----------- Net Change in Unrealized Appreciation/Depreciation on Investments........................... (16,852,577) (10,472,763) (388,487) (1,872,514) ------------ ------------ ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts............................. (51,187,651) 28,807,321 (6,813,002) 8,888,874 ------------ ------------ ----------- ----------- Contribution from Advisor............. -- -- -- 148,040 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(50,735,661) $ 29,339,357 $(6,757,273) $ 9,213,052 ============ ============ =========== ===========
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. ANNUAL REPORT 75 STATEMENTS OF OPERATIONS (continued) For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX RYDEX INVERSE RYDEX 2X RYDEX INVERSE 2X S&P 2X S&P RUSSELL 2000 2X RUSSELL SELECT SECTOR SELECT SECTOR ETF* 2000 ETF* ENERGY ETF** ENERGY ETF** ------------ ------------- ------------- ------------- INVESTMENT INCOME Interest............................... $ 29,091 $ 442,146 $ 2,447 $ 42,262 Dividends.............................. 110,415 -- 19,165 -- Foreign Taxes Withheld................. (28) -- -- -- ----------- ----------- ----------- ----------- Total Income........................ 139,478 442,146 21,612 42,262 ----------- ----------- ----------- ----------- EXPENSES Management Fee......................... 60,672 146,940 13,192 23,721 Trustee Fees........................... 447 1,104 129 116 ----------- ----------- ----------- ----------- Total Expenses...................... 61,119 148,044 13,321 23,837 ----------- ----------- ----------- ----------- Net Investment Income.................... 78,359 294,102 8,291 18,425 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments............................ (2,190,191) -- (1,761,058) -- Futures Contracts...................... (2,108,860) 7,190,827 (17,476) (231,238) Swap Contracts......................... (1,026,866) 5,567,000 (3,036,765) 6,892,306 ----------- ----------- ----------- ----------- Net Realized Gain (Loss)............ (5,325,917) 12,757,827 (4,815,299) 6,661,068 Net Change in Unrealized Appreciation/Depreciation on: Investment Securities.................. (1,010,791) -- 93,019 -- Futures Contracts...................... (1,424,665) (2,227,460) -- -- Swap Contracts......................... -- (1,755,839) 652,119 (2,974,767) ----------- ----------- ----------- ----------- Net Change in Unrealized Appreciation/Depreciation on Investments............................ (2,435,456) (3,983,299) 745,138 (2,974,767) ----------- ----------- ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts.............................. (7,761,373) 8,774,528 (4,070,161) 3,686,301 ----------- ----------- ----------- ----------- Contribution from Advisor.............. -- 315,120 -- -- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.. $(7,683,014) $ 9,383,750 $(4,061,870) $ 3,704,726 =========== =========== =========== ===========
* The Fund commenced operations on November 5, 2007. ** The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. ANNUAL REPORT 76 STATEMENTS OF OPERATIONS (continued) For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX RYDEX INVERSE RYDEX RYDEX INVERSE 2X S&P 2X S&P 2X S&P 2X S&P SELECT SECTOR SELECT SECTOR SELECT SECTOR SELECT SECTOR FINANCIAL ETF* FINANCIAL ETF* TECHNOLOGY ETF* TECHNOLOGY ETF* -------------- -------------- --------------- --------------- INVESTMENT INCOME Interest.......................... $ 3,492 $ 38,186 $ 2,821 $ 39,399 Dividends......................... 145,092 -- 28,811 -- ------------ ----------- ----------- ----------- Total Income................... 148,584 38,186 31,632 39,399 ------------ ----------- ----------- ----------- EXPENSES Management Fee.................... 31,560 21,917 15,554 23,359 Trustee Fees...................... 94 156 106 140 ------------ ----------- ----------- ----------- Total Expenses................. 31,654 22,073 15,660 23,499 ------------ ----------- ----------- ----------- Net Investment Income............... 116,930 16,113 15,972 15,900 ------------ ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments....................... (6,239,988) -- (1,037,004) -- Futures Contracts................. (57,188) 406,617 (6,471) (169,783) Swap Contracts.................... (11,943,943) 2,577,966 (2,859,995) 6,464,008 ------------ ----------- ----------- ----------- Net Realized Gain (Loss)....... (18,241,119) 2,984,583 (3,903,470) 6,294,225 Net Change in Unrealized Appreciation/Depreciation on: Investment Securities............. (323,181) -- (829,446) -- Futures Contracts................. -- 1,387 -- -- Swap Contracts.................... 2,566,561 (3,320,090) 343,569 (1,879,566) ------------ ----------- ----------- ----------- Net Change in Unrealized Appreciation/Depreciation on Investments....................... 2,243,380 (3,318,703) (485,877) (1,879,566) ------------ ----------- ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts.................... (15,997,739) (334,120) (4,389,347) 4,414,659 ------------ ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $(15,880,809) $ (318,007) $(4,373,375) $ 4,430,559 ============ =========== =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. ANNUAL REPORT 77 STATEMENTS OF OPERATIONS (concluded) For the Year Ended October 31, 2008 --------------------------------------------------------------------------------
RYDEX RYDEX INVERSE 2X S&P 2X S&P SELECT SECTOR SELECT SECTOR HEALTH CARE ETF* HEALTH CARE ETF* ---------------- ---------------- INVESTMENT INCOME Interest............................................ $ 4,050 $ 37,257 Dividends........................................... 39,429 -- ----------- ----------- Total Income..................................... 43,479 37,257 ----------- ----------- EXPENSES Management Fee...................................... 20,180 20,965 Trustee Fees........................................ 119 126 ----------- ----------- Total Expenses................................... 20,299 21,091 ----------- ----------- Net Investment Income................................. 23,180 16,166 ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net Realized Gain (Loss) From: Investments......................................... (393,465) -- Futures Contracts................................... (17,476) (168,972) Swap Contracts...................................... (1,742,870) 2,781,930 ----------- ----------- Net Realized Gain (Loss)......................... (2,153,811) 2,612,958 Net Change in Unrealized Appreciation/Depreciation on: Investment Securities............................... (525,150) -- Swap Contracts...................................... 461,513 (1,728,947) ----------- ----------- Net Change in Unrealized Appreciation/Depreciation on Investments......................................... (63,637) (1,728,947) ----------- ----------- Net Realized and Unrealized Gain (Loss) on Investments, Futures and Swap Contracts............. (2,217,448) 884,011 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................ $(2,194,268) $ 900,177 =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. ANNUAL REPORT 78 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P 500 ETF S&P 500 ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- OPERATIONS Net Investment Income............................... $ 451,990 $ 532,036 Net Realized Gain (Loss)............................ (34,335,074) 39,280,084 Net Change in Unrealized Appreciation/Depreciation on Investments................................... (16,852,577) (10,472,763) ------------ ------------ Net Increase (Decrease) in Net Assets Resulting From Operations....................................... (50,735,661) 29,339,357 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (363,939) (552,721) ------------ ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........................... 168,610,953 112,256,284 Value of Shares Reinvested.......................... -- -- Value of Shares Repurchased......................... (4,147,460) (74,937,363) ------------ ------------ Net Increase in Net Assets Resulting From Share Transactions..................................... 164,463,493 37,318,921 ------------ ------------ Increase in Net Assets........................... 113,363,893 66,105,557 NET ASSETS--BEGINNING OF PERIOD....................... -- -- ------------ ------------ NET ASSETS--END OF PERIOD(1).......................... $113,363,893 $ 66,105,557 ============ ============ (1) Including Undistributed Net Investment Income..... $ 81,221 $ -- ============ ============ CHANGES IN SHARES OUTSTANDING: Shares Sold......................................... 4,250,000 1,150,000 Shares Reinvested................................... -- -- Shares Repurchased.................................. (150,000) (650,000) Shares Outstanding, Beginning of Period............. -- -- ------------ ------------ Shares Outstanding, End of Period................... 4,100,000 500,000 ============ ============
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. ANNUAL REPORT 79 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P MIDCAP S&P MIDCAP 400 ETF 400 ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- OPERATIONS Net Investment Income............................... $ 55,729 $ 176,138 Net Realized Gain (Loss)............................ (6,424,515) 10,761,388 Net Change in Unrealized Appreciation/Depreciation on Investments................................... (388,487) (1,872,514) Contribution from Advisor........................... -- 148,040 ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations....................................... (6,757,273) 9,213,052 ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (50,604) (178,257) Capital............................................. (2,868) -- ----------- ------------ Total Distributions to Shareholders................. (53,472) (178,257) ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........................... 20,963,143 26,670,531 Value of Shares Reinvested.......................... -- -- Value of Shares Repurchased......................... (8,672,372) (29,109,215) ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Share Transactions............................... 12,290,771 (2,438,684) ----------- ------------ Increase in Net Assets........................... 5,480,026 6,596,111 NET ASSETS--BEGINNING OF PERIOD....................... -- -- ----------- ------------ NET ASSETS--END OF PERIOD(1).......................... $ 5,480,026 $ 6,596,111 =========== ============ (1) Including Undistributed Net Investment Income..... $ -- $ -- =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Sold......................................... 350,000 350,000 Shares Reinvested................................... -- -- Shares Repurchased.................................. (150,000) (300,000) Shares Outstanding, Beginning of Period............. -- -- ----------- ------------ Shares Outstanding, End of Period................... 200,000 50,000 =========== ============
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. ANNUAL REPORT 80 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X RUSSELL 2000 ETF RUSSELL 2000 ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- OPERATIONS Net Investment Income............................... $ 78,359 $ 294,102 Net Realized Gain (Loss)............................ (5,325,917) 12,757,827 Net Change in Unrealized Depreciation on Investments...................................... (2,435,456) (3,983,299) Contribution from Advisor........................... -- 315,120 ----------- ------------ Net Increase (Decrease) in Net Assets Resulting From Operations....................................... (7,683,014) 9,383,750 ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (66,551) (298,197) ----------- ------------ Decrease in Net Assets From Distributions to Shareholders..................................... (66,551) (298,197) ----------- ------------ SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........................... 30,146,525 67,341,919 Value of Shares Repurchased......................... (8,955,457) (59,909,325) ----------- ------------ Net Increase in Net Assets Resulting From Share Transactions..................................... 21,191,068 7,432,594 ----------- ------------ Increase in Net Assets........................... 13,441,503 16,518,147 NET ASSETS--BEGINNING OF PERIOD....................... -- -- ----------- ------------ NET ASSETS--END OF PERIOD(1).......................... $13,441,503 $ 16,518,147 =========== ============ (1) Including Undistributed Net Investment Income..... $ 2,359 $ -- =========== ============ CHANGES IN SHARES OUTSTANDING: Shares Sold......................................... 600,000 850,000 Shares Reinvested................................... -- -- Shares Repurchased.................................. (150,000) (700,000) Shares Outstanding, Beginning of Period............. -- -- ----------- ------------ Shares Outstanding, End of Period................... 450,000 150,000 =========== ============
* The Fund commenced operations on November 5, 2007. See Notes to Financial Statements. ANNUAL REPORT 81 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR ENERGY ETF ENERGY ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- OPERATIONS Net Investment Income............................... $ 8,291 $ 18,425 Net Realized Gain (Loss)............................ (4,815,299) 6,661,068 Net Change in Unrealized Appreciation/Depreciation on Investments................................... 745,138 (2,974,767) ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations....................................... (4,061,870) 3,704,726 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (7,308) (19,874) ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........................... 10,214,317 7,500,000 Value of Shares Repurchased......................... (2,101,344) (5,589,313) ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions..................................... 8,112,973 1,910,687 ----------- ----------- Increase in Net Assets........................... 4,043,795 5,595,539 NET ASSETS--BEGINNING OF PERIOD....................... -- -- ----------- ----------- NET ASSETS--END OF PERIOD(1).......................... $ 4,043,795 $ 5,595,539 =========== =========== (1) Including Undistributed Net Investment Income..... $ 983 $ -- =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................................... 250,000 100,000 Shares Reinvested................................... -- -- Shares Repurchased.................................. (50,000) (50,000) Shares Outstanding, Beginning of Period............. -- -- ----------- ----------- Shares Outstanding, End of Period................... 200,000 50,000 =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. ANNUAL REPORT 82 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR FINANCIAL ETF FINANCIAL ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- OPERATIONS Net Investment Income............................... $ 116,930 $ 16,113 Net Realized Gain (Loss)............................ (18,241,119) 2,984,583 Net Change in Unrealized Appreciation/Depreciation on Investments................................... 2,243,380 (3,318,703) ------------ ----------- Net Decrease in Net Assets Resulting From Operations....................................... (15,880,809) (318,007) ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (65,308) (18,187) ------------ ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........................... 35,235,683 7,500,000 Value of Shares Reinvested.......................... -- -- Value of Shares Repurchased......................... (8,679,296) -- ------------ ----------- Net Increase in Net Assets Resulting From Share Transactions..................................... 26,556,387 7,500,000 ------------ ----------- Increase in Net Assets........................... 10,610,270 7,163,806 NET ASSETS--BEGINNING OF PERIOD....................... -- -- ------------ ----------- NET ASSETS--END OF PERIOD(1).......................... $ 10,610,270 $ 7,163,806 ============ =========== (1) Including Undistributed Net Investment Income..... $ 44,812 $ -- ============ =========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................................... 750,000 100,000 Shares Reinvested................................... -- -- Shares Repurchased.................................. (350,000) -- Shares Outstanding, Beginning of Period............. -- -- ------------ ----------- Shares Outstanding, End of Period................... 400,000 100,000 ============ ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. ANNUAL REPORT 83 STATEMENTS OF CHANGES IN NET ASSETS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR TECHNOLOGY ETF TECHNOLOGY ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- OPERATIONS Net Investment Income............................... $ 15,972 $ 15,900 Net Realized Gain (Loss)............................ (3,903,470) 6,294,225 Net Change in Unrealized Depreciation on Investments...................................... (485,877) (1,879,566) ----------- ----------- Net Increase (Decrease) in Net Assets Resulting From Operations....................................... (4,373,375) 4,430,559 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (11,327) (18,238) ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........................... 7,500,000 7,500,000 Value of Shares Reinvested.......................... -- -- Value of Shares Repurchased......................... -- (5,443,858) ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions..................................... 7,500,000 2,056,142 ----------- ----------- Increase in Net Assets........................... 3,115,298 6,468,463 NET ASSETS--BEGINNING OF PERIOD....................... -- -- ----------- ----------- NET ASSETS--END OF PERIOD(1).......................... $ 3,115,298 $ 6,468,463 =========== =========== (1) Including Undistributed Net Investment Income..... $ 4,645 $ -- =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................................... 100,000 100,000 Shares Reinvested................................... -- -- Shares Repurchased.................................. -- (50,000) Shares Outstanding, Beginning of Period............. -- -- ----------- ----------- Shares Outstanding, End of Period................... 100,000 50,000 =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. ANNUAL REPORT 84 STATEMENTS OF CHANGES IN NET ASSETS (concluded) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR HEALTH CARE ETF HEALTH CARE ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- OPERATIONS Net Investment Income............................... $ 23,180 $ 16,166 Net Realized Gain (Loss)............................ (2,153,811) 2,612,958 Net Change in Unrealized Depreciation on Investments...................................... (63,637) (1,728,947) ----------- ----------- Net (Decrease) in Net Assets Resulting From Operations....................................... (2,194,268) 900,177 ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................... (22,169) (18,758) ----------- ----------- SHAREHOLDER TRANSACTIONS Proceeds From Shares Sold........................... 7,500,000 7,500,000 Value of Shares Reinvested.......................... -- -- Value of Shares Repurchased......................... -- -- ----------- ----------- Net Increase in Net Assets Resulting From Share Transactions..................................... 7,500,000 7,500,000 ----------- ----------- Increase in Net Assets........................... 5,283,563 8,381,419 NET ASSETS--BEGINNING OF PERIOD....................... -- -- ----------- ----------- NET ASSETS--END OF PERIOD(1).......................... $ 5,283,563 $ 8,381,419 =========== =========== (1) Including Undistributed Net Investment Income..... $ 1,011 $ -- =========== =========== CHANGES IN SHARES OUTSTANDING: Shares Sold......................................... 100,000 100,000 Shares Reinvested................................... -- -- Shares Outstanding, Beginning of Period............. -- -- ----------- ----------- Shares Outstanding, End of Period................... 100,000 100,000 =========== ===========
* The Fund commenced operations on June 10, 2008. See Notes to Financial Statements. ANNUAL REPORT 85 FINANCIAL HIGHLIGHTS --------------------------------------------------------------------------------
RYDEX INVERSE RYDEX 2X 2X S&P 500 ETF S&P 500 ETF --------------- --------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, 2008* 2008* --------------- --------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............... $75.00 $75.00 -------- ------- Net Investment Income**.............................. 0.61 1.04 Net Realized and Unrealized Gain (Loss) on Investments........................................ (47.27) 57.20 -------- ------- TOTAL FROM INVESTMENT OPERATIONS..................... (46.66) 58.24 -------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................ (0.69) (1.03) -------- ------- NET ASSET VALUE AT END OF PERIOD..................... $27.65 $132.21 ======== ======= TOTAL RETURN***...................................... (62.68)% 78.27% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......... $113,364 $66,106 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................. 0.70%**** 0.71%**** Net Investment Income................................ 1.35%**** 1.09%**** Portfolio Turnover Rate+............................. 44% --
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. The portfolio turnover rate for inverse funds is zero because these funds only hold instruments which are not included in the portfolio turnover rate calculation, as previously disclosed. See Notes to Financial Statements. ANNUAL REPORT 86 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X S&P RYDEX INVERSE 2X MIDCAP 400 ETF S&P MIDCAP 400 ETF ----------------- ------------------ PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ------------------ PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............ $75.00 $75.00 ------ ------- Net Investment Income**........................... 0.56 1.40 Contribution from Advisor......................... -- 1.17 Net Realized and Unrealized Gain (Loss) on Investments..................................... (47.62) 55.83 ------ ------- TOTAL FROM INVESTMENT OPERATIONS.................. (47.06) 58.40 ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income............................. (0.53) (1.48) Capital........................................... (0.01) -- ------ ------- Total Distributions............................... (0.54) (1.48) ------ ------- NET ASSET VALUE AT END OF PERIOD.................. $27.40 $131.92 ====== ======= TOTAL RETURN***................................... (63.12)% 78.90%(a) RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted)....... $5,480 $6,596 RATIO TO AVERAGE NET ASSETS OF: Expenses.......................................... 0.71%**** 0.71%**** Net Investment Income............................. 0.94%**** 1.65%**** Portfolio Turnover Rate+.......................... 234% --
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (a) For the period ending October 31, 2008, 1.77% of the Fund's total return consisted of a voluntary reimbursement by the advisor for a realized investment loss. Excluding this item, total return would have been 77.13%. + 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. The portfolio turnover rate for inverse funds is zero because these funds only hold instruments which are not included in the portfolio turnover rate calculation, as previously disclosed. See Notes to Financial Statements. ANNUAL REPORT 87 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X RUSSELL 2000 ETF RUSSELL 2000 ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............... $75.00 $75.00 ------- ------- Net Investment Income**.............................. 0.51 1.21 Contribution from Advisor............................ -- 1.29 Net Realized and Unrealized Gain (Loss) on Investments........................................ (45.09) 33.76 ------- ------- TOTAL FROM INVESTMENT OPERATIONS..................... (44.58) 36.26 ------- ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................ (0.55) (1.14) ------- ------- NET ASSET VALUE AT END OF PERIOD..................... $29.87 $110.12 ======= ======= TOTAL RETURN***...................................... (59.79)% 48.79%(a) RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......... $13,442 $16,518 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................. 0.71%**** 0.71%**** Net Investment Income................................ 0.93%**** 1.41%**** Portfolio Turnover Rate+............................. 192% --
* The Fund commenced operations on November 5, 2007. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. (a) For the period ending October 31, 2008, 1.19% of the Fund's total return consisted of a voluntary reimbursement by the advisor for a realized investment loss. Excluding this item, total return would have been 47.60%. + 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. The portfolio turnover rate for inverse funds is zero because these funds only hold instruments which are not included in the portfolio turnover rate calculation, as previously disclosed. See Notes to Financial Statements. ANNUAL REPORT 88 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR ENERGY ETF ENERGY ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............... $75.00 $75.00 ------ ------- Net Investment Income**.............................. 0.09 0.22 Net Realized and Unrealized Gain (Loss) on Investments........................................ (54.72) 37.09 ------ ------- TOTAL FROM INVESTMENT OPERATIONS..................... (54.63) 37.31 ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................ (0.15) (0.40) ------ ------- NET ASSET VALUE AT END OF PERIOD..................... $20.22 $111.91 ====== ======= TOTAL RETURN***...................................... (72.94)% 49.75% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......... $4,044 $5,596 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................. 0.71%**** 0.71%**** Net Investment Income................................ 0.44%**** 0.55%**** Portfolio Turnover Rate+............................. 105% --
* The Fund commenced operations on June 10, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. The portfolio turnover rate for inverse funds is zero because these funds only hold instruments which are not included in the portfolio turnover rate calculation, as previously disclosed. See Notes to Financial Statements. ANNUAL REPORT 89 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR FINANCIAL ETF FINANCIAL ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............... $75.00 $75.00 ------- ------ Net Investment Income**.............................. 0.45 0.16 Net Realized and Unrealized Gain (Loss) on Investments........................................ (48.76) (3.34) ------- ------ TOTAL FROM INVESTMENT OPERATIONS..................... (48.31) (3.18) ------- ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................ (0.16) (0.18) ------- ------ NET ASSET VALUE AT END OF PERIOD..................... $26.53 $71.64 ======= ====== TOTAL RETURN***...................................... (64.51)% (4.19)% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......... $10,610 $7,164 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................. 0.71%**** 0.71%**** Net Investment Income................................ 2.60%**** 0.52%**** Portfolio Turnover Rate+............................. 177% --
* The Fund commenced operations on June 10, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. The portfolio turnover rate for inverse funds is zero because these funds only hold instruments which are not included in the portfolio turnover rate calculation, as previously disclosed. See Notes to Financial Statements. ANNUAL REPORT 90 FINANCIAL HIGHLIGHTS (continued) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR TECHNOLOGY ETF TECHNOLOGY ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............... $75.00 $75.00 ------ ------- Net Investment Income**.............................. 0.16 0.18 Net Realized and Unrealized Gain (Loss) on Investments........................................ (43.90) 54.37 ------ ------- TOTAL FROM INVESTMENT OPERATIONS..................... (43.74) 54.55 ------ ------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................ (0.11) (0.18) ------ ------- NET ASSET VALUE AT END OF PERIOD..................... $31.15 $129.37 ====== ======= TOTAL RETURN***...................................... (58.36)% 72.79% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......... $3,115 $6,468 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................. 0.71%**** 0.71%**** Net Investment Income................................ 0.72%**** 0.48%**** Portfolio Turnover Rate+............................. 65% --
* The Fund commenced operations on June 10, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. The portfolio turnover rate for inverse funds is zero because these funds only hold instruments which are not included in the portfolio turnover rate calculation, as previously disclosed. See Notes to Financial Statements. ANNUAL REPORT 91 FINANCIAL HIGHLIGHTS (concluded) --------------------------------------------------------------------------------
RYDEX 2X RYDEX INVERSE 2X S&P SELECT SECTOR S&P SELECT SECTOR HEALTH CARE ETF HEALTH CARE ETF ----------------- ----------------- PERIOD ENDED PERIOD ENDED OCTOBER 31, 2008* OCTOBER 31, 2008* ----------------- ----------------- PER SHARE OPERATING PERFORMANCE: NET ASSET VALUE AT BEGINNING OF PERIOD............... $75.00 $75.00 ------ ------ Net Investment Income**.............................. 0.23 0.16 Net Realized and Unrealized Gain (Loss) on Investments........................................ (22.17) 8.84 ------ ------ TOTAL FROM INVESTMENT OPERATIONS..................... (21.94) 9.00 ------ ------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net Investment Income................................ (0.22) (0.19) ------ ------ NET ASSET VALUE AT END OF PERIOD..................... $52.84 $83.81 ====== ====== TOTAL RETURN***...................................... (29.33)% 12.04% RATIOS/SUPPLEMENTAL DATA: Net Assets at End of Period (000's Omitted).......... $5,284 $8,381 RATIO TO AVERAGE NET ASSETS OF: Expenses............................................. 0.71%**** 0.71%**** Net Investment Income................................ 0.81%**** 0.54%**** Portfolio Turnover Rate+............................. 35% --
* The Fund commenced operations on June 10, 2008. ** Based on average shares outstanding. *** Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distribution at net asset value during the period, and redemption on the last day of the period. Transaction fees are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. **** Annualized. + Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions. Portfolio turnover rate is calculated without regard to instruments having a maturity of less than one year from acquisition or derivative instruments (including swap agreements and futures contracts). The portfolio turnover rate can be high and volatile due to the sales and purchases of fund shares during the period. The portfolio turnover rate for inverse funds is zero because these funds only hold instruments which are not included in the portfolio turnover rate calculation, as previously disclosed. See Notes to Financial Statements. ANNUAL REPORT 92 NOTES TO FINANCIAL STATEMENTS October 31, 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 October 31, 2008, the Trust offers thirty one portfolios, each of which represents a separate series of beneficial interest in the Trust (each a "Fund," and collectively the "Funds"). The financial statements herein relate to the following Funds: Rydex 2x S&P 500 ETF, Rydex Inverse 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex 2x Russell 2000(R) ETF, Rydex Inverse 2x Russell 2000(R) ETF, Rydex 2x S&P Select Sector Energy ETF, Rydex Inverse 2x S&P Select Sector Energy ETF, Rydex 2x S&P Select Sector Financial ETF, Rydex Inverse 2x S&P Select Sector Financial ETF, Rydex 2x S&P Select Sector Technology ETF, Rydex Inverse 2x S&P Select Sector Technology ETF, Rydex 2x S&P Select Sector Health Care ETF, and Rydex Inverse 2x S&P Select Sector Health Care ETF. Rydex 2x S&P 500 ETF, Rydex Inverse 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex 2x Russell 2000(R) ETF, and Rydex Inverse 2x Russell 2000(R) ETF commenced operations on November 5, 2007. Rydex 2x S&P Select Sector Energy ETF, Rydex Inverse 2x S&P Select Sector Energy ETF, Rydex 2x S&P Select Sector Financial ETF, Rydex Inverse 2x S&P Select Sector Financial ETF, Rydex 2x S&P Select Sector Technology ETF, Rydex Inverse 2x S&P Select Sector Technology ETF, Rydex 2x S&P Select Sector Health Care ETF, and Rydex Inverse 2x S&P Select Sector Health Care ETF commenced operations on June 10, 2008. The Funds' investment objective is to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. For Rydex 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, Rydex 2x Russell 2000(R) ETF, Rydex 2x S&P Select Sector Energy ETF, Rydex 2x S&P Select Sector Financial ETF, Rydex 2x S&P Select Sector Technology ETF, and Rydex 2x S&P Select Sector Health Care ETF (each a "Leveraged Fund," and collectively the "Leveraged Funds"), each Fund's benchmark is 200% of the performance of an index representing publicly traded securities (the "Underlying Index"). For Rydex Inverse 2x S&P 500 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex Inverse 2x Russell 2000(R) ETF, Rydex Inverse 2x S&P Select Sector Energy ETF, Rydex Inverse 2x S&P Select Sector Financial ETF, Rydex Inverse 2x S&P Select Sector Technology ETF, and Rydex Inverse 2x S&P Select Sector Health Care ETF (each a "Leveraged Inverse Fund," and collectively the "Leveraged Inverse Funds"), each Fund's benchmark is 200% of the inverse (opposite) performance of its Underlying Index. The Underlying Index for Rydex 2x S&P 500 ETF and Rydex Inverse 2x S&P 500 ETF is the S&P 500 Index. The Underlying Index for Rydex 2x S&P MidCap 400 ETF and Rydex Inverse 2x S&P MidCap 400 ETF is the S&P MidCap 400 Index. The Underlying Index for Rydex 2x Russell 2000(R) ETF and Rydex Inverse 2x Russell 2000(R) ETF is the Russell 2000(R) Index. The Underlying Index for Rydex 2x S&P Select Sector Energy ETF and Rydex Inverse 2x S&P Select Sector Energy ETF is the Energy Select Sector Index. The Underlying Index for Rydex 2x S&P Select Sector Financial ETF and Rydex Inverse 2x S&P Select Sector Financial ETF is the Financial Select Sector Index. The Underlying Index for Rydex 2x S&P Select Sector Technology ETF and Rydex Inverse 2x S&P Select Sector Technology ETF is the Technology Select Sector Index. The Underlying Index for Rydex 2x S&P Select Sector Health Care ETF and Rydex Inverse 2x S&P Select Sector Health Care ETF is the Health Care Select Sector Index. The Leveraged Funds seek to achieve their objective by investing in equity securities contained in the Underlying Index, and leveraged derivative instruments, such as equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. The Leveraged Inverse Funds seek to achieve their objective by engaging in short sales of securities and investing in leveraged derivative instruments, such as equity swaps, futures contracts, and options on securities, futures contracts, and stock indices. The Funds operate as index funds and are not actively managed. Adverse performance of a security in a Fund's portfolio will ordinarily not result in the elimination of the security from the Fund's portfolio. The Funds issue and redeem shares on a continuous basis, at net asset value, only in aggregations of 50,000 shares called a "Creation Unit". Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. 2. SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures at the date of the financial statements and accompanying notes and the reported amounts of increases and decreases in net assets from operations during the reporting period. Management believes that the estimates utilized in preparing the Funds' financial statements are reasonable and prudent; however, actual results could differ from these estimates. ANNUAL REPORT 93 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- A. SECURITY VALUATION Securities listed on a domestic securities exchange are valued based on the last sale price as of the close of regular trading hours on the New York Stock Exchange 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 Net Asset Value ("NAV"). Investments for which market quotations are not readily are fair valued as determine in good faith by Rydex Investments under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) general information as to how these securities and assets trade, (ii) in connection with futures contracts and options thereupon, and other derivative instruments, information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contacts and other derivative investments trade in the cash market, and (iii) other information and considerations, including current values in related-markets. 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 the maturity. The Funds may also purchase American Depository Receipts, U.S. Government securities, and enter into repurchase agreements. B. SECURITY TRANSACTIONS AND INCOME RECOGNITION Security transactions are recorded on the trade date. Realized gains and losses from portfolio fund transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date, net of foreign tax withholdings. Interest income is recorded on the accrual basis. C. REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements with financial institutions. In a repurchase agreement, a Fund buys a security and the seller simultaneously agrees to repurchase the security on a specified future date at an agreed-upon price. The repurchase price reflects an agreed-upon interest rate during the time the Fund's money is invested in the security. Because the security constitutes collateral for the repurchase obligation, a repurchase agreement can be considered a collateralized loan. The Funds follow certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose condition will be continually monitored by Rydex Investments, 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. ANNUAL REPORT 94 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 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 repurchase agreements allocated to each Fund. G. FEDERAL INCOME TAXES The Funds' policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of the taxable income and capital gains, if any to the shareholders within the allowable time limits. Therefore, no provision for Federal income taxes is required. The Funds adopted Financial Accounting Standards Board (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 the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years for purposes of complying with FIN 48, and has concluded that no provision for income tax was required in the Funds' financial statements. The Funds file U.S. federal income tax returns and returns in various foreign jurisdictions in which they invest. While the statute of limitations remains open to examine the Funds' U.S. federal income tax returns, no examinations are in progress or anticipated at this time. Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for tax equalization, in-kind redemptions, income reclassifications from real estate investment trusts ("REITs") and losses deferred due to wash sales. In order to present paid-in-capital, undistributed net investment income (loss) and accumulated net realized gain (loss) on investments on the statement of assets and liabilities that more closely represent their tax character, certain adjustments have been made to these accounts. These adjustments have no effect on net assets or net asset value per share. The most significant of these adjustments are for tax equalization and net capital gains resulting from in- kind redemptions which, because they are non-taxable to the Funds, and therefore are not distributed to existing Fund shareholders, are reclassified to paid-in- capital. The in-kind net capital gains for the ANNUAL REPORT 95 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- period ended October 31, 2008 are disclosed in each Fund's Statement of Operations. For the period ended October 31, 2008, the adjustments for the Funds were as follows:
UNDISTRIBUTED ACCUMULATED PAID-IN NET INVESTMENT NET REALIZED CAPITAL INCOME (LOSS) GAIN (LOSS) ----------- -------------- ------------ Rydex 2x S&P 500 ETF................................. $ -- $(6,830) $ 6,830 Rydex Inverse 2x S&P 500 ETF......................... 16,151,688 20,685 (16,172,373) Rydex 2x S&P MidCap 400 ETF.......................... -- (5,125) 5,125 Rydex Inverse 2x S&P MidCap 400 ETF.................. 8,249,896 2,119 (8,252,015) Rydex 2x Russell 2000(R) ETF......................... -- (9,449) 9,449 Rydex Inverse 2x Russell 2000(R) ETF................. 8,672,281 4,095 (8,676,376) Rydex 2x S&P Select Sector Energy ETF................ -- -- -- Rydex Inverse 2x S&P Select Sector Energy ETF........ 2,335,487 1,449 (2,336,936) Rydex 2x S&P Select Sector Financial ETF............. -- (6,810) 6,810 Rydex Inverse 2x S&P Select Sector Financial ETF..... -- 2,074 (2,074) Rydex 2x S&P Select Sector Technology ETF............ -- -- -- Rydex Inverse 2x S&P Select Sector Technology ETF.... 2,484,042 2,338 (2,486,380) Rydex 2x S&P Select Sector Health Care ETF........... -- -- -- Rydex Inverse 2x S&P Select Sector Health Care ETF... -- 2,592 (2,592)
For the period ended October 31, 2008, there were no significant differences between the book basis and tax basis of net unrealized appreciation (depreciation) in value of investments other than tax deferral of losses on wash sales and the cumulative return of capital payments on REITs. At October 31, 2008, the Funds had capital loss carryforwards which may be utilized to offset any net realized capital gains expiring October 31:
2014 2015 2016 -------- -------- ----------- Rydex 2x S&P 500 ETF..................................... $ -- $ -- $31,040,829 Rydex Inverse 2x S&P 500 ETF............................. -- -- -- Rydex 2x S&P MidCap 400 ETF.............................. -- -- 5,600,771 Rydex Inverse 2x S&P MidCap 400 ETF...................... -- -- -- Rydex 2x Russell 2000(R) ETF............................. -- -- 5,395,770 Rydex Inverse 2x Russell 2000(R) ETF..................... -- -- -- Rydex 2x S&P Select Sector Energy ETF.................... -- -- 3,238,456 Rydex Inverse 2x S&P Select Sector Energy ETF............ -- -- -- Rydex 2x S&P Select Sector Financial ETF................. -- -- 12,649,037 Rydex Inverse 2x S&P Select Sector Financial ETF......... -- -- -- Rydex 2x S&P Select Sector Technology ETF................ -- -- 3,557,985 Rydex Inverse 2x S&P Select Sector Technology ETF........ -- -- -- Rydex 2x S&P Select Sector Health Care ETF............... -- -- 2,017,045 Rydex Inverse 2x S&P Select Sector Health Care ETF....... -- -- --
The Funds did not utilize any capital loss carryforwards during the period ended October 31, 2008. The tax character of distributable earnings (accumulated losses) at October 31, 2008 were as follows:
UNDISTRIBUTED UNREALIZED UNDISTRIBUTED LONG TERM CAPITAL LOSS APPRECIATION/ ORDINARY INCOME CAPITAL GAIN CARRYFORWARD (DEPRECIATION) --------------- ------------- ------------ -------------- Rydex 2x S&P 500 ETF......................... $ 81,221 $ -- $(31,040,829) $(20,139,992) Rydex Inverse 2x S&P 500 ETF................. -- 12,634,948 -- -- Rydex 2x S&P MidCap 400 ETF.................. -- -- (5,600,771) (1,207,106) Rydex Inverse 2x S&P MidCap 400 ETF.......... 831,370 1,359,477 -- (1,405,948) Rydex 2x Russell 2000(R) ETF................. 2,359 -- (5,395,770) (2,356,154) Rydex Inverse 2x Russell 2000(R) ETF......... -- 2,169,111 -- (1,755,839) Rydex 2x S&P Select Sector Energy ETF........ 983 -- (3,238,456) (831,705) Rydex Inverse 2x S&P Select Sector Energy ETF........................................ 4,324,132 -- -- (2,974,767) Rydex 2x S&P Select Sector Financial ETF..... 44,812 -- (12,649,037) (3,341,892) Rydex Inverse 2x S&P Select Sector Financial ETF........................................ 2,739,094 244,802 -- (3,320,090) Rydex 2x S&P Select Sector Technology ETF.... 4,645 -- (3,557,985) (831,362) Rydex Inverse 2x S&P Select Sector Technology ETF........................................ 3,807,845 -- -- (1,879,566) Rydex 2x S&P Select Sector Health Care ETF... 1,011 -- (2,017,045) (200,403) Rydex Inverse 2x S&P Select Sector Health Care ETF................................... 2,610,366 -- -- (1,728,947)
ANNUAL REPORT 96 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- The tax character of distributions paid during 2008 were as follows:
ORDINARY LONG-TERM RETURN ON INCOME CAPITAL GAIN CAPITAL -------- ------------ --------- Rydex 2x S&P 500 ETF..................................... $363,939 $ -- $ -- Rydex Inverse 2x S&P 500 ETF............................. 552,721 -- -- Rydex 2x S&P MidCap 400 ETF.............................. 50,604 -- 2,868 Rydex Inverse 2x S&P MidCap 400 ETF...................... 178,257 -- -- Rydex 2x Russell 2000(R) ETF............................. 66,551 -- -- Rydex Inverse 2x Russell 2000(R) ETF..................... 298,197 -- -- Rydex 2x S&P Select Sector Energy ETF.................... 7,308 -- -- Rydex Inverse 2x S&P Select Sector Energy ETF............ 19,874 -- -- Rydex 2x S&P Select Sector Financial ETF................. 65,308 -- -- Rydex Inverse 2x S&P Select Sector Financial ETF......... 18,187 -- -- Rydex 2x S&P Select Sector Technology ETF................ 11,327 -- -- Rydex Inverse 2x S&P Select Sector Technology ETF........ 18,238 -- -- Rydex 2x S&P Select Sector Health Care ETF............... 22,169 -- -- Rydex Inverse 2x S&P Select Sector Health Care ETF....... 18,758 -- --
H. FAIR VALUE MEASUREMENT The Funds adopted Statement of Financial Accounting Standard No. 157 ("FAS 157") Fair Value Measurement which provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity's financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification an acceptable fair valuation methods and applications. Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels: Level 1 -- quoted prices in active markets for identical securities. Level 2 -- other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 -- significant unobservable inputs (including the Funds' own assumptions used to determine the fair value of investments). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. ANNUAL REPORT 97 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- The following table summarizes the inputs used to value the Funds' net assets as of October 31, 2008:
LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 1 OTHER LEVEL 2 OTHER LEVEL 3 OTHER INVESTMENTS FINANCIAL INVESTMENTS FINANCIAL INVESTMENTS FINANCIAL FUND IN SECURITIES INSTRUMENTS IN SECURITIES INSTRUMENTS IN SECURITIES INSTRUMENTS ---- ------------- ----------- ------------- --------------- ------------- ----------- ASSETS Rydex 2x S&P 500 ETF............ $106,395,346 $ -- $ -- $ -- $ -- $ -- Rydex Inverse 2x S&P 500 ETF.... 44,251,000 -- -- -- -- -- Rydex 2x S&P MidCap 400 ETF..... 4,422,420 149,000 -- 236,602 -- -- Rydex Inverse 2x S&P MidCap 400 ETF........................... 5,866,000 -- -- -- -- -- Rydex 2x Russell 2000 ETF....... 12,374,259 -- -- -- -- -- Rydex Inverse 2x Russell 2000 ETF........................... 14,613,000 -- -- -- -- -- Rydex 2x S&P Select Sector Energy ETF.................... 3,521,651 -- -- 652,119 -- -- Rydex Inverse 2x S&P Select Sector Energy ETF............. 5,025,000 -- -- -- -- -- Rydex 2x S&P Select Sector Financial ETF................. 8,624,911 -- -- 2,566,561 -- -- Rydex Inverse 2x S&P Select Sector Financial ETF.......... 6,997,000 1,387 -- -- -- -- Rydex 2x S&P Select Sector Technology ETF................ 2,585,053 -- -- 343,569 -- -- Rydex Inverse 2x S&P Select Sector Technology ETF......... 5,652,000 -- -- -- -- -- Rydex 2x S&P Select Sector Health Care ETF............... 4,498,334 -- -- 461,513 -- -- Rydex Inverse 2x S&P Select Sector Health Care ETF........ 7,442,000 -- -- -- -- -- LIABILITIES Rydex 2x S&P 500 ETF............ -- 2,745,632 -- -- -- -- Rydex Inverse 2x S&P 500 ETF.... -- 10,472,763 -- -- -- -- Rydex 2x S&P MidCap 400 ETF..... -- -- -- -- -- -- Rydex Inverse 2x S&P MidCap 400 ETF........................... -- 466,566 -- 1,405,948 -- -- Rydex 2x Russell 2000 ETF....... -- 1,424,665 -- -- -- -- Rydex Inverse 2x Russell 2000 ETF........................... -- 2,227,460 -- 1,755,839 -- -- Rydex 2x S&P Select Sector Energy ETF.................... -- -- -- -- -- -- Rydex Inverse 2x S&P Select Sector Energy ETF............. -- -- -- 2,974,767 -- -- Rydex 2x S&P Select Sector Financial ETF................. -- -- -- -- -- -- Rydex Inverse 2x S&P Select Sector Financial ETF.......... -- -- -- 3,320,090 -- -- Rydex 2x S&P Select Sector Technology ETF................ -- -- -- -- -- -- Rydex Inverse 2x S&P Select Sector Technology ETF......... -- -- -- 1,879,566 -- -- Rydex 2x S&P Select Sector Health Care ETF............... -- -- -- -- -- -- Rydex Inverse 2x S&P Select Sector Health Care ETF........ -- -- -- 1,728,947 -- -- FUND TOTAL ---- ------------ ASSETS Rydex 2x S&P 500 ETF............ $106,395,346 Rydex Inverse 2x S&P 500 ETF.... 44,251,000 Rydex 2x S&P MidCap 400 ETF..... 4,808,022 Rydex Inverse 2x S&P MidCap 400 ETF........................... 5,866,000 Rydex 2x Russell 2000 ETF....... 12,374,259 Rydex Inverse 2x Russell 2000 ETF........................... 14,613,000 Rydex 2x S&P Select Sector Energy ETF.................... 4,173,770 Rydex Inverse 2x S&P Select Sector Energy ETF............. 5,025,000 Rydex 2x S&P Select Sector Financial ETF................. 11,191,472 Rydex Inverse 2x S&P Select Sector Financial ETF.......... 6,998,387 Rydex 2x S&P Select Sector Technology ETF................ 2,928,622 Rydex Inverse 2x S&P Select Sector Technology ETF......... 5,652,000 Rydex 2x S&P Select Sector Health Care ETF............... 4,959,847 Rydex Inverse 2x S&P Select Sector Health Care ETF........ 7,442,000 LIABILITIES Rydex 2x S&P 500 ETF............ 2,745,632 Rydex Inverse 2x S&P 500 ETF.... 10,472,763 Rydex 2x S&P MidCap 400 ETF..... -- Rydex Inverse 2x S&P MidCap 400 ETF........................... 1,872,514 Rydex 2x Russell 2000 ETF....... 1,424,665 Rydex Inverse 2x Russell 2000 ETF........................... 3,983,299 Rydex 2x S&P Select Sector Energy ETF.................... -- Rydex Inverse 2x S&P Select Sector Energy ETF............. 2,974,767 Rydex 2x S&P Select Sector Financial ETF................. -- Rydex Inverse 2x S&P Select Sector Financial ETF.......... 3,320,090 Rydex 2x S&P Select Sector Technology ETF................ -- Rydex Inverse 2x S&P Select Sector Technology ETF......... 1,879,566 Rydex 2x S&P Select Sector Health Care ETF............... -- Rydex Inverse 2x S&P Select Sector Health Care ETF........ 1,728,947
I. DIVIDENDS AND DISTRIBUTIONS The Funds declare and pay dividends from net investment income and distribute from net realized capital gains at least annually. J. RISK AND UNCERTAINTIES The Trust invests in various investments which are exposed to risk, such as market risk. Due to the level of risk associated with certain investments it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect amounts reported in future financial statements. The risk 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. K. NEW ACCOUNTING PRONOUNCEMENTS In March, 2008, Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161") was issued and is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds' derivative and hedging activities. Management is currently evaluating the impact, if any, the adoption of SFAS 161 will have on the Funds' financial statement disclosures. ANNUAL REPORT 98 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- 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 each Funds' to conform to changes in the composition of the relevant index. For these services, the Advisor receives an advisory fee at the annual rate shown below of the average daily net assets of the Funds.
ADVISORY FEE ------------ Rydex 2x S&P 500 ETF................................................. 0.70% Rydex Inverse 2x S&P 500 ETF......................................... 0.70% Rydex 2x S&P MidCap 400 ETF.......................................... 0.70% Rydex Inverse 2x S&P MidCap 400 ETF.................................. 0.70% Rydex 2x Russell 2000(R) ETF......................................... 0.70% Rydex Inverse 2x Russell 2000(R) ETF................................. 0.70% Rydex 2x S&P Select Sector Energy ETF................................ 0.70% Rydex Inverse 2x S&P Select Sector Energy ETF........................ 0.70% Rydex 2x S&P Select Sector Financial ETF............................. 0.70% Rydex Inverse 2x S&P Select Sector Financial ETF..................... 0.70% Rydex 2x S&P Select Sector Technology ETF............................ 0.70% Rydex Inverse 2x S&P Select Sector Technology ETF.................... 0.70% Rydex 2x S&P Select Sector Health Care ETF........................... 0.70% Rydex Inverse 2x S&P Select Sector Health Care ETF................... 0.70%
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. 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. 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 voluntary contributions during the period ended October 31, 2008 in the amounts of $148,040 in Rydex Inverse 2x S&P MidCap 400 ETF and $315,120 in Rydex Inverse 2x Russell 2000 ETF to compensate portfolio losses caused by trading errors made by advisor. 4. CAPITAL At October 31, 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 ANNUAL REPORT 99 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- equate the transaction to the net asset value per unit of the Fund on the transaction date. Transaction fees are not charged to or paid by the Fund. The minimum transaction fees are:
MINIMUM TRANSACTION FEE --------------- Rydex 2x S&P 500 ETF............................................... $2,000 Rydex Inverse 2x S&P 500 ETF....................................... 50 Rydex 2x S&P MidCap 400 ETF........................................ 2,000 Rydex Inverse 2x S&P MidCap 400 ETF................................ 50 Rydex 2x Russell 2000(R) ETF....................................... 3,000 Rydex Inverse 2x Russell 2000(R) ETF............................... 50 Rydex 2x S&P Select Sector Energy ETF.............................. 500 Rydex Inverse 2x S&P Select Sector Energy ETF...................... 50 Rydex 2x S&P Select Sector Financial ETF........................... 750 Rydex Inverse 2x S&P Select Sector Financial ETF................... 50 Rydex 2x S&P Select Sector Technology ETF.......................... 750 Rydex Inverse 2x S&P Select Sector Technology ETF.................. 50 Rydex 2x S&P Select Sector Health Care ETF......................... 500 Rydex Inverse 2x S&P Select Sector Health Care ETF................. 50
5. INVESTMENT TRANSACTIONS For the period ended October 31, 2008 the Funds had in-kind contributions and in-kind redemptions as follows:
SUBSCRIPTIONS REDEMPTIONS ------------- ----------- Rydex 2x S&P 500 ETF......................................... $30,137,837 $ -- Rydex Inverse 2x S&P 500 ETF................................. -- -- Rydex 2x S&P MidCap 400 ETF.................................. 5,834,339 -- Rydex Inverse 2x S&P MidCap 400 ETF.......................... -- -- Rydex 2x Russell 2000(R) ETF................................. -- -- Rydex Inverse 2x Russell 2000(R) ETF......................... -- -- Rydex 2x S&P Select Sector Energy ETF........................ -- -- Rydex Inverse 2x S&P Select Sector Energy ETF................ -- -- Rydex 2x S&P Select Sector Financial ETF..................... -- -- Rydex Inverse 2x S&P Select Sector Financial ETF............. -- -- Rydex 2x S&P Select Sector Technology ETF.................... -- -- Rydex Inverse 2x S&P Select Sector Technology ETF............ -- -- Rydex 2x S&P Select Sector Health Care ETF................... -- -- Rydex Inverse 2x S&P Select Sector Health Care ETF........... -- --
Purchases and sales of investment securities (excluding short-term investments, U.S. government and government agency obligations) for the Funds during the period ended October 31, 2008 were as follows:
PURCHASES SALES ----------- ----------- Rydex 2x S&P 500 ETF.......................................... $95,988,559 $13,544,522 Rydex Inverse 2x S&P 500 ETF.................................. -- -- Rydex 2x S&P MidCap 400 ETF................................... 14,266,928 12,636,813 Rydex Inverse 2x S&P MidCap 400 ETF........................... -- -- Rydex 2x Russell 2000(R) ETF.................................. 29,199,844 15,164,232 Rydex Inverse 2x Russell 2000(R) ETF.......................... -- -- Rydex 2x S&P Select Sector Energy ETF......................... 9,664,009 4,343,970 Rydex Inverse 2x S&P Select Sector Energy ETF................. -- -- Rydex 2x S&P Select Sector Financial ETF...................... 33,491,913 16,742,791 Rydex Inverse 2x S&P Select Sector Financial ETF.............. -- -- Rydex 2x S&P Select Sector Technology ETF..................... 7,615,657 2,955,906 Rydex Inverse 2x S&P Select Sector Technology ETF............. -- -- Rydex 2x S&P Select Sector Health Care ETF.................... 7,700,021 2,074,652 Rydex Inverse 2x S&P Select Sector Health Care ETF............ -- --
ANNUAL REPORT 100 NOTES TO FINANCIAL STATEMENTS (concluded) -------------------------------------------------------------------------------- At October 31, 2008, the identified cost of investments in securities owned by each fund for federal income tax purposes and the gross unrealized appreciation and depreciation was as follows:
GROSS GROSS NET UNREALIZED IDENTIFIED UNREALIZED UNREALIZED APPRECIATION/ COST APPRECIATION DEPRECIATION (DEPRECIATION) ------------ ------------ ------------ -------------- Rydex 2x S&P 500 ETF......................... $126,535,338 $ -- $(20,139,992) $(20,139,992) Rydex Inverse 2x S&P 500 ETF................. 44,251,000 -- -- -- Rydex 2x S&P MidCap 400 ETF.................. 5,866,128 309,253 (1,752,961) (1,443,708) Rydex Inverse 2x S&P MidCap 400 ETF.......... 5,866,000 -- -- -- Rydex 2x Russell 2000(R) ETF................. 14,730,413 418,999 (2,775,153) (2,356,154) Rydex Inverse 2x Russell 2000(R) ETF......... 14,613,000 -- -- -- Rydex 2x S&P Select Sector Energy ETF........ 5,005,475 138,163 (1,621,987) (1,483,824) Rydex Inverse 2x S&P Select Sector Energy ETF........................................ 5,025,000 -- -- -- Rydex 2x S&P Select Sector Financial ETF..... 14,533,364 412,356 (6,320,809) (5,908,453) Rydex Inverse 2x S&P Select Sector Financial ETF........................................ 6,997,000 -- -- -- Rydex 2x S&P Select Sector Technology ETF.... 3,759,984 -- (831,362) (831,362) Rydex Inverse 2x S&P Select Sector Technology ETF........................................ 5,652,000 -- -- -- Rydex 2x S&P Select Sector Health Care ETF... 5,160,250 551,995 (1,213,911) (661,916) Rydex Inverse 2x S&P Select Sector Health Care ETF................................... 7,442,000 -- -- --
6. ACQUISTION 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. ANNUAL REPORT 101 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- The Board of Trustees and Shareholders of Rydex ETF Trust We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Rydex 2X S&P 500 ETF, Rydex Inverse 2X S&P ETF, Rydex 2X MidCap 400 ETF, Rydex Inverse 2X MidCap 400 ETF, Rydex 2X Russell 2000 ETF, Rydex Inverse 2X Russell 2000 ETF, Rydex 2X S&P Select Sector Energy ETF, Rydex Inverse 2X S&P Select Sector Energy ETF, Rydex 2X S&P Select Sector Financial ETF, Rydex Inverse 2X S&P Select Sector Financial ETF, Rydex 2X S&P Select Sector Technology ETF, Rydex Inverse 2X S&P Select Sector Technology ETF, Rydex 2X S&P Select Sector Health Care ETF, Rydex Inverse 2X S&P Select Sector Health Care ETF (the "Funds"), fourteen of the funds comprising Rydex ETF Trust (the "Trust"), as of October 31, 2008, and the related statements of operations, the statements of changes in net assets and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds of the Rydex ETF Trust at October 31, 2008 mentioned above, the results of their operations for the year then ended, the changes in their net assets for the year then ended and the financial highlights for the period indicated therein, in conformity with U.S. generally accepted accounting principles. ERNST & YOUNG LOGO Boston, Massachusetts December 23, 2008 ANNUAL REPORT 102 SUPPLEMENTAL INFORMATION (Unaudited) -------------------------------------------------------------------------------- FEDERAL INCOME TAX INFORMATION For federal income tax purposes, the following information is furnished for the year ended October 31, 2008 in respect to percentage of ordinary distributions (net investment income plus short-term gains) which qualify for corporate dividends received deduction, designated qualified dividend income eligible for reduced taxes and distributions from long-term capital gains. These long-term capital gains distributions may be subject to a maximum tax rate of 15% as provided by the internal revenue code. The funds below hereby designate the maximum amount of such dividend allowable up to the amount of the dividends paid during the year.
DIVIDEND LONG TERM QUALIFIED RECEIVED CAPITAL GAINS DIVIDEND DEDUCTION DISTRIBUTION INCOME --------- ------------- --------- Rydex 2x S&P 500 ETF.................................. 100.00% $ -- $575,623 Rydex Inverse 2x S&P 500 ETF.......................... 0.00% 555,686 Rydex 2x S&P MidCap 400 ETF........................... 100.00% -- 55,537 Rydex Inverse 2x S&P MidCap 400 ETF................... 0.00% -- -- Rydex 2x Russell 2000(R) ETF.......................... 98.34% -- 64,291 Rydex Inverse 2x Russell 2000(R) ETF.................. 0.00% 808,909 -- Rydex 2x S&P Select Sector Energy ETF................. 100.00% -- 17,826 Rydex Inverse 2x S&P Select Sector Energy ETF......... 0.00% -- -- Rydex 2x S&P Select Sector Financial ETF.............. 88.22% -- 100,592 Rydex Inverse 2x S&P Select Sector Financial ETF...... 0.00% -- -- Rydex 2x S&P Select Sector Technology ETF............. 100.00% -- 27,778 Rydex Inverse 2x S&P Select Sector Technology ETF..... 0.00% -- -- Rydex 2x S&P Select Sector Health Care ETF............ 100.00% -- 37,709 Rydex Inverse 2x S&P Select Sector Health Care ETF.... 0.00% -- --
PROXY VOTING INFORMATION A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also available from the EDGAR database on the SEC's website at http://www.sec.gov. Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, 2008 is also available, without charge and upon request, by (i) calling 1-800-820-0888; or accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov. QUARTERLY PORTFOLIO SCHEDULES INFORMATION The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC's website at http://www.sec.gov. The Trust's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 1-800-820-0888. ANNUAL REPORT 103 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 158 VERBONCOEUR* Rydex Variable Trust - 2004 TRUSTEE, Rydex Dynamic Funds - 2004 PRESIDENT (1952) Rydex ETF Trust - 2004
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Treasurer of Rydex Specialized Products, LLC (2005 to present); Chief Executive Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present). Executive Vice President of Rydex Investments (2000 to 2003) --------------------- MICHAEL P. Rydex Series Funds - 2005 150 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 2008); Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004) -------------------------------------------------------------------------------- INDEPENDENT TRUSTEES
NAME, POSITION LENGTH OF SERVICE AND AS TRUSTEE NUMBER OF FUNDS YEAR OF BIRTH (YEAR BEGAN) OVERSEEN ---------------- ----------------------------------------- ---------------- JOHN O. DEMARET Rydex Series Funds - 1997 150 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 150 COLEHOUR Rydex Variable Trust - 1998 Trustee (1945) Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2006 to present); Owner and President of Schield Management, registered investment advisor (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield Management Company, registered investment advisor (1985 to 2005) --------------------- J. KENNETH Rydex Series Funds - 1995 150 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 150 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 150 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 150 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 150 Trustee (1944) Rydex Variable Trust - 1998 Rydex Dynamic Funds - 1999 Rydex ETF Trust - 2003
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine -------------------------------------------------------------------------------- ANNUAL REPORT 104 INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (concluded) -------------------------------------------------------------------------------- EXECUTIVE OFFICERS
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE YEAR OF BIRTH YEARS ----------------------------------------- ----------------------------------------- NICK BONOS* Chief Financial Officer of Rydex Vice President and Treasurer (1963) Specialized Products, LLC (2005 to present); Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice President of Rydex Investments (2003 to present); Vice President and Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006); Vice President of Accounting of Rydex Investments (2000 to 2003) JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series Chief Compliance Officer and Secretary Funds, Rydex Variable Trust, and Rydex (1966) Dynamic Funds (2004 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Secretary of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX Fund (2003 to 2006) JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of Rydex Investments (2008 to present); Vice President of Rydex Investments (2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004); Vice President of Mutual Funds, State Street Bank & Trust (2000 to 2003) PAULA BILLOS* Controller of Rydex Series Funds, Rydex Controller (1974) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust (2006 to present); Director of Fund Administration of Rydex Investments (2001 to present)
* Officers of the Funds are deemed to be "interested persons" of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person is affiliated with the Rydex Investments. [GRAPHIC] [RYDEX INVESTMENTS LOGO] 9601 Blackwell Road o Suite 500 o Rockville, MD 20850 www.rydexinvestments.com o 800.820.0888 ETF3-ANN-1008X1009 ITEM 2. CODE OF ETHICS. The Board of Trustees of the Trust has adopted a Combined Code of Ethics (the "Code") pursuant to Rule 17j-1 under the 1940 Act. The Advisor and Distributor are also covered by the Code. The Code applies to the personal investing activities of trustees, directors, officers, and certain employees ("access persons"). Rule 17j-1 and the Code are designed to prevent unlawful practices in connection with the purchase or sale of securities by access persons. Under the Code, access persons are permitted to engage in personal securities transactions, but are required to report their personal securities transactions for monitoring purposes. In addition, certain access persons are required to obtain approval before investing in initial public offerings or private placements. No substantive amendments were approved or waivers were granted to the Code during the period covered by this report. The Code is filed as an exhibit to this Form N-CSR. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Trustees has determined that Werner Keller, an "independent" Trustee serving on the registrant's audit committee, is an "audit committee financial expert," as defined in Item 3 of Form N-CSR. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a)-(d) The aggregate Audit Fees billed by the Trust's principal accountant, for the audit of the annual financial statements in connection with statutory and regulatory filings for the fiscal years ended October 31, 2008 and October 31, 2007 were $441,500 and $247,800, respectively. The aggregate Tax Fees billed by the Trust's principal accountant for professional services rendered for tax compliance, tax advice, and tax planning, including preparation of tax returns and distribution assistance, for the fiscal years ended October 31, 2008 and October 31, 2007 were $0. (e) The audit committee has adopted a policy whereby audit and non-audit services performed by the registrant's principal accountant for the registrant, its investment advisor, and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the registrant require pre-approval in advance at regularly scheduled audit committee meetings. If such service is required between regularly scheduled audit committee meetings, the chairman of the audit committee, J. Kenneth Dalton, is authorized to pre-approve the service with full committee approval at the next scheduled meeting. There shall be no waivers of the pre-approval process. No services described in (b)-(d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not applicable. (g) Not applicable. (h) Not applicable. 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 January 7, 2009, the President (principal executive officer) and the Treasurer (principal financial officer) of the Rydex ETF Trust (the "Trust") believe that there were no significant deficiencies in the design or operation of the internal controls of the Trust or Rydex Investments ("RI") the investment advisor and manager of the Trust, and State Street Bank and Trust Company (the "Administrator"), the administrator of the Trust, or Rydex Distributors, Inc. ("RD"), which acts as distributor for the Trust, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) which would have adversely affected the ability of the Trust, the Administrator or RI on behalf of the Trust, to record, process, summarize, and report the subject matter contained in this Report, 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 RI, the Administrator, RD or the Trust who have a significant role in the Trust's internal controls, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come to the attention of the advisor or the officers of the Trust, including its President and Treasurer. (b) There were no significant changes in the Trust's and RI internal controls over financial reporting, including disclosure controls and procedures (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is attached. (a)(2) Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached. (b) A certification by the registrant's President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached.