N-CSR 1 a08-15959_1ncsr.htm N-CSR

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		811-22001

TDX Independence Funds, Inc.
(Exact name of registrant as specified in charter)

420 Lexington Avenue, Suite 2550 New York, New York				10170
(Address of principal executive offices)				(Zip code)

David M. Kelley TDX Independence Funds, Inc. 420 Lexington Avenue Suite 2550 New York, New York 10170
(Name and address of agent for service)

Registrant’s telephone number, including area code:			(212) 867-7400

Date of fiscal year end:	May 31, 2008

Date of reporting period:	May 31, 2008

Item 1. Report to Stockholders.

The Registrant’s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

ANNUAL REPORT

May 31, 2008

TDX Independence Funds, Inc.

(formerly TDAX Funds, Inc.)

TDX Independence 2010 Exchange-Traded Fund
(formerly TDAX Independence 2010 Exchange-Traded Fund)

TDX Independence 2020 Exchange-Traded Fund
(formerly TDAX Independence 2020 Exchange-Traded Fund)

TDX Independence 2030 Exchange-Traded Fund
(formerly TDAX Independence 2030 Exchange-Traded Fund)

TDX Independence 2040 Exchange-Traded Fund
(formerly TDAX Independence 2040 Exchange-Traded Fund)

TDX Independence In-Target Exchange-Traded Fund
(formerly TDAX Independence In-Target Exchange-Traded Fund)

TDX Independence Funds, Inc.

TABLE OF CONTENTS

	Page
Shareholder Letter		1

Management's Discussion on Fund Performance		3

Fund Performance Overview

TDX Independence 2010 Exchange-Traded Fund		4

TDX Independence 2020 Exchange-Traded Fund		6

TDX Independence 2030 Exchange-Traded Fund		8

TDX Independence 2040 Exchange-Traded Fund		10

TDX Independence In-Target Exchange-Traded Fund		12

Fees and Expenses		15

Schedule of Investments

TDX Independence 2010 Exchange-Traded Fund		17

TDX Independence 2020 Exchange-Traded Fund		23

TDX Independence 2030 Exchange-Traded Fund		29

TDX Independence 2040 Exchange-Traded Fund		35

TDX Independence In-Target Exchange-Traded Fund		41

Statements of Assets and Liabilities		46

Statements of Operations		48

Statements of Changes in Net Assets		50

Financial Highlights		52

Notes to Financial Statements		54

Report of Independent Registered Public Accounting Firm		61

Frequency Distribution of Discounts & Premiums (Unaudited)		62

Officers and Directors (Unaudited)		63

Additional Information (Unaudited)		65

This Page is Intentionally Left Blank

TO OUR SHAREHOLDERS:

It is a pleasure to present the first Annual Report for TDX Independence Funds, Inc. This report covers the period from the launch of the five TDX Independence Funds on NYSE Arca on October 1, 2007 through May 31, 2008.

During the six months that have elapsed since our last report, the TDX Independence Exchange-Traded Funds have steadily increased in assets. As of May 31, 2008, assets under management for the five TDX Independence Exchange-Traded Funds totaled $170 million, representing a 53% increase from the $111 million reported on November 30, 2007.

The TDX Independence family of exchange-traded funds (ETFs) was, at launch, the first target-date ETFs to enter the market — and they are still the only ones. TDX Independence ETFs continue to be well positioned to take advantage of the growing interest in target-date funds. According to the Investment Company Institute, the Washington, D.C.-based association of U.S. investment companies, target-date mutual funds are still one of the fastest growing segments of the mutual fund industry, with $421 billion in assets at the end of 2007, up from $303 billion as of the end of 2006¹.

Each TDX Independence ETF tracks an index (designed by Zacks Investment Research) of 500 securities, comprised of equities (domestic and international) and fixed income. As each TDX Independence ETF approaches its target date, portfolio weightings automatically shift from an overweight in equities to an overweight in fixed income. Upon reaching the target date, each index has a very conservative allocation. Over the five years after the target date is reached, allocations shift from conservative to more moderately-conservative allocations and thereafter remain static to perpetuity.

Mixing debt and equity securities in a single ETF, which is what the TDX Independence ETFs do, is a ground breaking innovation, providing simplicity for investors looking to buy a complex product in one simple, easy trade. In recognition of this unique design, the TDX Independence ETFs received the Most Innovative ETF Product for the Americas Award by industry group Exchangetradedfunds.com earlier this year.

In the months ahead, we hope to increase awareness among investors and to have our TDX Independence ETFs recognized as innovative tools that can help investors meet all kinds of life events. We take great pride in these products that strive to help you reach your investment goals.

Thank you for your continued support.

Very truly yours,



Anthony F. Dudzinski				David M. Kelley

Chairman &				President &

Chief Operating Officer				Chief Executive Officer

¹ Investment Company Institute 2008 Fact Book.

This Page is Intentionally Left Blank

TDX Independence Funds, Inc.

MANAGEMENT'S DISCUSSION ON FUND PERFORMANCE

In the eight months since the launch of the TDX Independence ETFs, the ongoing credit crisis, slowing economic growth, higher energy prices and rising inflation all contributed to a challenging investment environment. During the period from October 1, 2007 through May 31, 2008, the Federal Reserve Board cut its key federal funds rate seven times for a total of three percentage points in an effort to ease the credit crunch and stabilize the markets. The aggressive easing in interest rates did not, however, stem the decline in domestic and international equities indexes. Over the eight month period ending May 31, 2008, the Standard & Poor's 500 Index declined 8.23%, the Russell 3000 Index declined 7.59% and the NASDAQ Composite Index fell 7.49%. Additionally, International markets were not immune to the downturn as the Morgan Stanley Capital International Europe, Autraliasia and Far East Index declined 10.27% over the same period. The combination of the Federal Reserve's rate cuts and weakness in the equity markets drove many investors to seek shelter in fixed income securities. The Lehman Brothers US Aggregate Bond Index returned 4.14% over the same period, with much of the positive performance coming from short-term Treasuries as the Lehman Brothers US Aggregate 3 Year Treasury Index returned 4.29%. However, this flight to quality put pressure on high-yielding corporate bonds as the Lehman Brothers US High Yield Index climbed only 0.15%.

The TDX Independence ETFs had a wide range of returns since their inception on October 1, 2007 (For specific performance results, please refer to the Fund Performance Section on the following pages of this report). The wide range in the performance of the five TDX Independence ETFs was due to the varying allocations in the funds to domestic equities, international equities and fixed income securities. The range of performance among the TDX Independence ETFs is illustrated by the difference in returns between the TDX In-Target and TDX 2040 ETFs. The In-Target ETF, which was allocated heavily towards short-term US Treasuries, experienced positive performance with a return of 2.12% during the period from inception through May 31, 2008. The 2040 ETF, which had the heaviest exposure to equities, both domestic and international, fell 8.14% during the same period.

The S&P 500 is a broad-based index designed to measure the performance of the domestic economy as represented by 500 large capitalization stocks.

The Russell 3000 is a broad-based index representing approximately 98% of the investable US equity market.

The NASDAQ Composite is a broad-based index of NASDAQ-listed securities commonly used as a barometer of technology stock performance.

THE MSCI EAFE is a broad-based index representing the largest stocks by market capitalization in 21 developed countries in Europe, Australasia and the Far East.

The Lehman Brothers US Aggregate Bond Index is a broad-based index designed to represent the US investment-grade bond universe.

The Lehman Brothers Aggregate 3 Year Treasury Index is a subset of the Lehman Brothers US Aggregate Bond Index representing 3 year US government Treasury bonds.

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY

TDX Independence 2010 Exchange-Traded Fund (TDD)

The TDX Independence 2010 ETF began trading on NYSE Arca, Inc. ("NYSE Arca") on October 1, 2007. It seeks to track the performance, before fees and expenses, of the Zacks 2010 Lifecycle Index. Both the fund's equity and bond portfolios held fewer securities than the underlying index, a constraint imposed by the relatively small size of the portfolio. The Fund's investment strategy includes sampling of the securities within the underlying index in an effort to replicate the performance of the index.

The equity portfolio of the underlying index declined significantly since inception. The Financial, Information Technology and Telecommunication Sectors, which account for most of the index's performance, were down 20.1%, 17.9% and 13.6%, respectively. Additionally, the securities held in the fund in the Financial, Information Technology, and Telecommunication Sectors underperformed their benchmark by 0.61%, 2.50%, and 0.06%, respectively, contributing to an overall underperformance of 0.67%. The TDD fixed income portfolio underperformed the underlying index by about 0.04%, due to security selection in five to six year corporate bonds.

Performance as of 5/31/08

Cumulative Total Return
	Net Asset Value			Market Price			Zacks 2010 Lifecycle Index			Dow Jones Target 2010 Index
Six Month¹		-1.14	%		-1.02	%		-0.92	%		0.92	%
Since Inception^1,2		-0.99	%		-0.96	%		-0.87	%		2.76	%

¹ Returns of less than one year are cumulative.

² Total returns are calculated based on the commencement of trading, 10/1/07. The Zacks 2010 Lifecycle Index return is a price return and does not include dividend or interest payments. The fund is new and has only a very short performance history. The returns shown may not be illustrative of longer-term performance.

The preceding performance chart is provided for comparative purposes and represents the period noted. The Fund's net asset value per share ("NAV") is calculated by dividing the value of the Fund's total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on NYSE Arca of a share of the fund from inception through May 31, 2008. The price used to calculate market price returns is the mid-point of the bid/ask spread for fund shares at 4 p.m. Eastern Time on NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The Dow Jones Target Date Indexes are indexes whose allocations are automatically adjusted to reduce potential risk over time. Each index in the series allocates among U.S. and global stock, bond and cash subindexes on a monthly basis to measure predefined relative risk levels.

An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund's performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes on transactions in Fund shares or that a shareholder would pay on Fund distributions. Total returns for a period less than one year have not been annualized.

Performance quoted represents past performance and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.tdxindependencefunds.com. Investment in the Fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The total expense ratio in the most recent prospectus is estimated at 0.73%. Amerivest, sub-advisor to the fund, has agreed to cap the expense ratio at 0.65% until at least 9/30/08.

Growth of a $10,000 Investment in TDD³ as of 5/31/08

³ Based on Net Asset Value from commencement of trading, 10/1/07.

Asset Class Breakdown

as of 5/31/08*

*Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Global Industry Classification Standards (GICS).

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY (CONTINUED)

TDX Independence 2010 Exchange-Traded Fund (TDD) (Continued)

Top Ten Holdings⁴ as of 5/31/08

Top Ten Equity Holdings
Description	Shares		Market Value		% of Net Assets
Exxon Mobil Corp.		1,756	$	155,863		0.6	%
EOG Resources, Inc.		987		126,958		0.5	%
Procter & Gamble (The) Co.		1,866		123,250		0.5	%
Wal-Mart Stores, Inc.		2,000		115,480		0.5	%
Johnson & Johnson		1,698		113,324		0.5	%
United Technologies Corp.		1,588		112,811		0.5	%
Exelon Corp.		1,249		109,911		0.4	%
American Express Co.		2,246		104,101		0.4	%
Chevron Corp.		1,003		99,447		0.4	%
AT&T, Inc.		2,440		97,356		0.4	%
Top Ten Fixed Income Holdings
Description	Principal Amount		Market Value		% of Net Assets
U.S. Treasury Note, 6.00%, 8/15/09	$	2,304,100	$	2,402,746		9.6	%
Fed. Home Loan Mort. Corp., 4.50%, 1/15/13		1,268,000		1,294,935		5.2	%
Fed. National Mort. Association, 5.00%, 9/15/08		908,000		915,575		3.7	%
U.S. Treasury Note, 3.5%, 2/15/10		799,000		811,859		3.3	%
U.S. Treasury Note, 4.75%, 11/15/08		712,800		721,711		2.9	%
Citigroup, Inc., 6.00%, 2/21/12		608,000		618,668		2.5	%
Fed. National Mort. Association, 5.00%, 4/15/15		588,000		610,590		2.4	%
US Treasury Note, 4.75%, 5/15/14		396,300		422,431		1.7	%
Merrill Lynch & Co., Inc., Series C MTN, 5.00%, 1/15/15		407,000		376,142		1.5	%
Wachovia Corp., 5.25%, 8/1/14		357,000		346,189		1.4	%

⁴ Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings go to www.tdxindependencefunds.com.

Sector Breakdown as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY

TDX Independence 2020 Exchange-Traded Fund (TDH)

The TDX Independence 2020 ETF began trading on NYSE Arca, Inc. ("NYSE Arca") on October 1, 2007. It seeks to track the performance, before fees and expenses, of the Zacks 2020 Lifecycle Index. Both the fund's equity and bond portfolios held fewer securities than the underlying index, a constraint imposed by the relatively small size of the portfolio. The Fund's investment strategy includes sampling of the securities within the underlying index in an effort to replicate the performance of the index.

The equity portfolio of the underlying index declined significantly since inception. The Financial, Information Technology and Telecommunication Sectors, which account for most of the index's performance, were down 20.1%, 17.9% and 13.6%, respectively. Additionally, the securities held in the fund in the Financial and Information Technology Sectors underperformed their benchmark by 1.47% and 1.95%, respectively, contributing to an overall underperformance of 0.21%. The TDH fixed income portfolio tracked its underlying index closely, with a slight underperformance of 0.01%.

Performance as of 5/31/08

Cumulative Total Return
	Net Asset Value			Market Price			Zacks 2020 Lifecycle Index			Dow Jones Target 2020 Index
Six Month¹		-3.73	%		-3.62	%		-3.80	%		-0.37	%
Since Inception^1,2		-4.82	%		-4.55	%		-4.42	%		-0.40	%

¹ Returns of less than one year are cumulative.

² Total returns are calculated based on the commencement of trading, 10/1/07. The Zacks 2020 Lifecycle Index return is a price return and does not include dividend or interest payments. The fund is new and has only a very short performance history. The returns shown may not be illustrative of longer-term performance.

Growth of a $10,000 Investment in TDH³ as of 5/31/08

³ Based on Net Asset Value from commencement of trading, 10/1/07.

Asset Class Breakdown

as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY (CONTINUED)

TDX Independence 2020 Exchange-Traded Fund (TDH) (Continued)

Top Ten Holdings⁴ as of 5/31/08

Top Ten Equity Holdings
Description	Shares		Market Value		% of Net Assets
Exxon Mobil Corp.		6,326	$	561,496		1.3	%
Procter & Gamble (The) Co.		7,031		464,398		1.1	%
Wal-Mart Stores, Inc.		7,125		411,397		0.9	%
United Technologies Corp.		5,649		401,304		0.9	%
Johnson & Johnson		6,008		400,973		0.9	%
Exelon Corp.		4,526		398,288		0.9	%
EOG Resoruces, Inc.		3,043		391,421		0.9	%
Chevron Corp.		3,933		389,957		0.9	%
American Express Co.		8,246		382,201		0.9	%
Pfizer, Inc.		19,190		371,518		0.9	%
Top Ten Fixed Income Holdings
Description	Principal Amount		Market Value		% of Net Assets
U.S. Treasury Note, 8.125%, 8/15/19	$	690,900	$	919,491		2.1	%
Fed. Home Loan Mort. Corp., 4.50%, 1/15/13		728,000		743,464		1.7	%
U.S. Treasury Note, 7.625%, 2/15/25		529,700		711,081		1.6	%
Citigroup, Inc., 6.00%, 2/21/12		607,000		617,648		1.4	%
Fed. Home Loan Mort. Corp., 6.25%, 7/15/32		516,000		588,013		1.4	%
U.S. Treasury Note, 6.25%, 5/15/30		355,000		429,356		1.0	%
HSBC Finance Corp., 6.375%, 11/27/12		409,000		421,334		1.0	%
U.S. Treasury Note, 4.75%, 5/15/14		384,300		409,640		0.9	%
Morgan Stanley, 5.30%, 3/01/13		418,000		407,583		0.9	%
Goldman Sachs Group, LP, 5.00%, 10/01/14		409,000		391,928		0.9	%

Sector Breakdown as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY

TDX Independence 2030 Exchange-Traded Fund (TDN)

The TDX Independence 2030 ETF began trading on NYSE Arca, Inc. ("NYSE Arca") on October 1, 2007. It seeks to track the performance, before fees and expenses, of the Zacks 2030 Lifecycle Index. Both the fund's equity and bond portfolios held fewer securities than the underlying index, a constraint imposed by the relatively small size of the portfolio. The Fund's investment strategy includes sampling of the securities within the underlying index in an effort to replicate the performance of the index.

The equity portfolio of the underlying index declined significantly since inception. The Financial, Information Technology and Telecommunication Sectors, which account for most of the index's performance, were down 20.1%, 17.9% and 13.6%, respectively. Additionally, the securities held in the fund in the Financial and Information Technology Sectors underperformed their benchmark by 1.75% and 2.25%, respectively, contributing to an overall underperformance of 0.35%. The TDN fixed income portfolio tracked its underlying index closely, with a slight out-performance of 0.03%.

Performance as of 5/31/08

Cumulative Total Return
	Net Asset Value			Market Price			Zacks 2030 Lifecycle Index			Dow Jones Target 2030 Index
Six Month¹		-5.45	%		-5.39	%		-5.20	%		-1.37	%
Since Inception^1,2		-7.59	%		-7.45	%		-6.76	%		-2.80	%

¹ Returns of less than one year are cumulative.

² Total returns are calculated based on the commencement of trading, 10/1/07. The Zacks 2030 Lifecycle Index return is a price return and does not include dividend or interest payments. The fund is new and has only a very short performance history. The returns shown may not be illustrative of longer-term performance.

Growth of a $10,000 Investment in TDN³ as of 5/31/08

³ Based on Net Asset Value from commencement of trading, 10/1/07.

Asset Class Breakdown

as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY (CONTINUED)

TDX Independence 2030 Exchange-Traded Fund (TDN) (Continued)

Top Ten Holdings⁴ as of 5/31/08

Top Ten Equity Holdings
Description	Shares		Market Value		% of Net Assets
Exxon Mobil Corp.		6,567	$	582,887		1.8	%
Procter & Gamble (The) Co.		7,361		486,193		1.5	%
Chevron Corp.		4,591		455,198		1.4	%
Wal-Mart Stores, Inc.		7,554		436,168		1.3	%
Johnson & Johnson		6,465		431,473		1.3	%
American Express Co.		9,254		428,923		1.3	%
United Technologies Corp.		5,988		425,387		1.3	%
Exelon Corp.		4,640		408,319		1.2	%
EOG Resources, Inc.		3,174		408,272		1.2	%
Pfizer, Inc.		19,924		385,728		1.2	%
Top Ten Fixed Income Holdings
Description	Principal Amount		Market Value		% of Net Assets
US Treasury, 4.75%, 05/15/14	$	210,300	$	224,167		0.7	%
Lincoln National Corp., 7.00%, 05/17/66		153,000		141,727		0.4	%
US Treasury, 8.125%, 08/15/19		98,200		130,690		0.4	%
Fed. Home Loan Mort. Corp., 6.25%, 07/15/32		111,000		126,491		0.4	%
US Treasury, 3.50%, 2/15/10		118,000		119,899		0.4	%
US Treasury, 7.625%, 02/15/25		87,600		117,596		0.4	%
US Treasury, 6.25%, 05/15/30		95,800		115,866		0.4	%
American General Finance, 5.375%, 10/01/12		118,000		114,256		0.4	%
Proctor & Gamble, 5.55%, 03/05/37		111,000		106,605		0.3	%
Travelers (The) Cos., Inc., 6.25%, 03/15/37		118,000		101,640		0.3	%

Sector Breakdown as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY

TDX Independence 2040 Exchange-Traded Fund (TDV)

The TDX Independence 2040 ETF began trading on NYSE Arca, Inc. ("NYSE Arca") on October 1, 2007. It seeks to track the performance, before fees and expenses, of the Zacks 2040 Lifecycle Index. Both the fund's equity and bond portfolios held fewer securities than the underlying index, a constraint imposed by the relatively small size of the portfolio. The Fund's investment strategy includes sampling of the securities within the underlying index in an effort to replicate the performance of the index.

The equity portfolio of the underlying index declined significantly since inception. The Financial, Information Technology and Telecommunication Sectors, which account for most of the index's performance, since inception, were down 20.1%, 17.9% and 13.6%, respectively. Additionally, the securities held in the fund in the Financial and Information Technology Sectors underperformed their benchmark by 0.83% and 2.87%, respectively, contributing to an overall underperformance of 0.22%. The TDV fixed income portfolio slightly outperformed its benchmark due to security selection. The fund underweighted certain financial securities held in the index, which added value.

Performance as of 5/31/08

Cumulative Total Return
	Net Asset Value			Market Price			Zacks 2040 Lifecycle Index			Dow Jones Target 2040 Index
Six Month¹		-5.68	%		-5.64	%		-7.26	%		-1.86	%
Since Inception^1,2		-8.14	%		-7.93	%		-9.16	%		-3.96	%

¹ Returns of less than one year are cumulative.

² Total returns are calculated based on the commencement of trading, 10/1/07. The Zacks 2040 Lifecycle Index return is a price return and does not include dividend or interest payments. The fund is new and has only a very short performance history. The returns shown may not be illustrative of longer-term performance.

Growth of a $10,000 Investment in TDV³ as of 5/31/08

³ Based on Net Asset Value from commencement of trading, 10/1/07.

Asset Class Breakdown

as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY (CONTINUED)

TDX Independence 2040 Exchange-Traded Fund (TDV) (Continued)

Top Ten Holdings⁴ as of 5/31/08

Top Ten Equity Holdings
Description	Shares		Market Value		% of Net Assets
Exxon Mobil Corp.		8,159	$	724,192		1.9	%
Procter & Gamble (The) Co.		9,075		599,404		1.6	%
Wal-Mart Stores, Inc.		9,304		537,213		1.4	%
American Express Co.		11,475		531,865		1.4	%
United Technologies Corp.		7,403		525,908		1.4	%
Exelon Corp.		5,900		519,201		1.4	%
Johnson & Johnson		7,580		505,889		1.4	%
EOG Resources, Inc.		3,923		504,615		1.3	%
Chevron Corp.		5,073		502,988		1.3	%
Pfizer, Inc.		24,861		481,309		1.3	%
Top Ten Fixed Income Holdings
Description	Principal Amount		Market Value		% of Net Assets
U.S. Treasury, 7.50%, 11/15/16	$	71,000	$	88,435		0.2	%
American Express Co., 6.80%, 9/01/66		64,000		60,700		0.2	%
Lincoln National Corp., 7.00%, 5/17/66		55,000		50,948		0.1	%
Fed. Home Loan Mort. Corp., 6.25%, 07/15/32		40,000		45,582		0.1	%
Bristol-Myers Squibb Co., 5.875%, 11/15/36		46,000		42,881		0.1	%
U.S. Treasury, 3.50%, 2/15/2010		40,100		40,745		0.1	%
Procter & Gamble (The) Co., 5.55%, 3/05/37		41,000		39,377		0.1	%
Burlington Northern Santa Fe Corp., 6.15%, 05/01/37		40,000		37,958		0.1	%
Eli Lilly & Co., 5.55%, 3/15/37		41,000		37,940		0.1	%
Vale Overseas Ltd., 6.875%, 11/21/36		38,000		37,851		0.1	%

Sector Breakdown as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY

TDX Independence In-Target Exchange-Traded Fund (TDX)

The TDX Independence In-Target ETF began trading on NYSE Arca, Inc. ("NYSE Arca") on October 1, 2007. It seeks to track the performance, before fees and expenses, of the Zacks In-Target Lifecycle Index. Both the fund's equity and bond portfolios held fewer securities than the underlying index, a constraint imposed by the relatively small size of the portfolio. The Fund's investment strategy includes sampling of the securities within the underlying index in an effort to replicate the performance of the index.

The equity portfolio of the underlying index declined significantly since inception, with the Financial, Information Technology and Telecommunication Sectors, which account for most of the index's performance, down 20.1%, 17.9% and 13.6%, respectively. Additionally, the securities held in the fund in the Financial, Information Technology, and Telecommunication Sectors underperformed their benchmark by 2.74%, 4.47% and 3.86%, respectively, contributing to an overall underperformance of 0.92%. The TDX fixed income portfolio closely tracked the underlying index, holding over half of the securities in the index and tilted toward government securities.

Performance as of 5/31/08

Cumulative Total Return
	Net Asset Value			Market Price			Zacks In-Target Lifecycle Index			Dow Jones Target Today Index
Six Month¹		0.99	%		1.12	%		0.77	%		1.00	%
Since Inception^1,2		2.12	%		1.38	%		2.13	%		2.53	%

¹ Returns of less than one year are cumulative.

² Total returns are calculated based on the commencement of trading, 10/1/07. The Zacks In-Target Lifecycle Index return is a price return and does not include dividend or interest payments. The fund is new and has only a very short performance history. The returns shown may not be illustrative of longer-term performance.

The preceding performance chart is provided for comparative purposes and represents the period noted. The Fund's net asset value per share ("NAV") is calculated by dividing the value of the Fund's total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on NYSE Arca of a share of the fund from inception through May 31, 2008. The price used to calculate market price returns is the mid-point of the bid/ask spread for fund shares at 4 p.m. Eastern Time on NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The Dow Jones Target Date Indexes are indexes whose allocations are automatically adjusted to reduce potential risk over time. Each index in the series allocates among U.S and global stock, bond and cash subindexes on a monthly basis to measure predefined relative risk levels.

Growth of a $10,000 Investment in TDX³ as of 5/31/08

³ Based on Net Asset Value from commencement of trading, 10/1/07.

Asset Class Breakdown

as of 5/31/08*

TDX Independence Funds, Inc.

PERFORMANCE SUMMARY (CONTINUED)

TDX Independence In-Target Exchange-Traded Fund (TDX) (Continued)

Top Ten Holdings⁴ as of 5/31/08

Top Ten Equity Holdings
Description	Shares		Market Value		% of Net Assets
Exxon Mobil Corp.		522	$	46,333		0.2	%
Chevron Corp.		362		35,892		0.1	%
Procter & Gamble (The) Co.		491		32,431		0.1	%
Wal-Mart Stores, Inc.		555		32,046		0.1	%
American Express Co.		676		31,332		0.1	%
Exelon Corp.		354		31,152		0.1	%
Johnson & Johnson		455		30,368		0.1	%
United Technologies Corp.		370		26,286		0.1	%
EOG Resources, Inc.		202		25,983		0.1	%
Toyota Motor Corp.		480		24,416		0.1	%
Top Ten Fixed Income Holdings
Description	Principal Amount		Market Value		% of Net Assets
US Treasury, 4.625%, 11/15/09	$	2,851,300	$	2,939,737		9.6	%
US Treasury, 3.125%, 10/15/08		2,904,000		2,918,293		9.5	%
US Treasury, 4.875%, 8/15/09		2,733,600		2,815,611		9.2	%
US Treasury, 3.125%, 9/15/08		2,730,500		2,713,641		8.9	%
US Treasury, 4.75%, 11/15/08		2,278,600		2,307,085		7.5	%
US Treasury, 3.50%, 2/15/10		1,743,200		1,771,255		5.8	%
US Treasury, 4.50%, 5/15/10		1,633,900		1,692,364		5.5	%
US Treasury, 6.50%, 2/15/10		1,462,200		1,556,787		5.1	%
US Treasury, 4.75%, 2/15/10		1,403,400		1,455,699		4.8	%
US Treasury, 2.625%, 3/15/09		1,234,100		1,239,595		4.1	%

Sector Breakdown as of 5/31/08*

This Page is Intentionally Left Blank

TDX Independence Funds, Inc.

FEES AND EXPENSES

As a shareholder of one or more of the various TDX Independence ETFs (each, a "Fund"), you incur advisory fees and other Fund expenses. The expense examples below are 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 funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the period ended May 31, 2008.

ACTUAL EXPENSES

The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid 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 line under the heading "Expenses Paid During the Period" to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratio and an assumed rate of return of 5% per year before expenses (which is not the Funds' actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the 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 transactional costs were included, your costs would have been higher.

	Beginning Account Value December 1, 2007		Ending Account Value May 31, 2008		Annualized Expense Ratio⁽¹⁾Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽²⁾
TDX Independence 2010 Exchange-Traded Fund
Actual	$	1,000.00	$	988.57		0.65	%	$	3.23
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.75		0.65	%	$	3.29
TDX Independence 2020 Exchange-Traded Fund
Actual	$	1,000.00	$	962.70		0.65	%	$	3.19
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.75		0.65	%	$	3.29
TDX Independence 2030 Exchange-Traded Fund
Actual	$	1,000.00	$	945.52		0.65	%	$	3.16
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.75		0.65	%	$	3.29
TDX Independence 2040 Exchange-Traded Fund
Actual	$	1,000.00	$	943.24		0.65	%	$	3.16
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.75		0.65	%	$	3.29
TDX Independence In-Target Exchange-Traded Fund
Actual	$	1,000.00	$	1,010.30		0.65	%	$	3.27
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.75		0.65	%	$	3.29

(1) Amerivest Investment Management, LLC ("Amerivest"), a sub-advisor to the Funds, has contractually agreed to pay Fund operating expenses (excluding, among other things, aquired fund fees and expenses, interest, taxes, brokerage commissions and extraordinary expenses) in order to limit the Net Annual Operating Expenses for shares of each Fund to 0.65% of the Fund's average net assets (the "Expense Cap"). The Expense Cap will remain in effect until at least September 30, 2008. Amerivest is permitted to be reimbursed for fee reductions and/or expense payments made in the prior three fiscal years. This reimbursement may be requested by Amerivest if the aggregate amount actually paid by the Fund toward operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the Expense Cap. Ratios would have been higher if fees were not reduced by Amerivest.

(2) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period December 1, 2007 to May 31, 2008. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 183 days and then dividing the result by 366.

This Page is Intentionally Left Blank

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS

TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND

May 31, 2008

	Number of Shares		Market Value
COMMON STOCKS—30.8%
CONSUMER DISCRETIONARY—3.2%
Aeropostale, Inc.*		250	$	8,735
ArvinMeritor, Inc.		753		11,272
Belo Corp., Class A		170		1,625
Brookfield Homes Corp.		753		11,370
Cabela's, Inc., Class A*		303		4,197
Citadel Broadcasting Corp.		585		1,030
Coach, Inc.*		1,003		36,409
Collective Brands, Inc.*		753		8,531
Columbia Sportswear Co.		84		3,681
Comcast Corp., Class A		2,181		49,072
Compagnie Financiere Richemont SA, Class A (Switzerland)		146		9,077
Daimler AG (Germany)		80		6,082
DeVry, Inc.		353		20,139
DIRECTV Group (The), Inc.*		2,506		70,418
Fleetwood Enterprises, Inc.*		1,866		7,763
Gaylord Entertainment Co.*		33		938
Home Depot (The), Inc.		753		20,602
HONDA MOTOR Co. Ltd. (Japan)		502		16,786
J. Crew Group, Inc.*		217		8,088
Jo-Ann Stores, Inc.*		437		9,837
Johnson Controls, Inc.		244		8,311
Jos. A. Bank Clothiers, Inc.*		250		6,800
Lear Corp.*		295		7,596
Liberty Global, Inc., Class A*		822		29,469
Live Nation, Inc.*		417		6,318
Matsushita Electric Industrial Co. Ltd. (Japan)		1,255		28,532
McDonald's Corp.		1,003		59,497
Men's Wearhouse (The), Inc.		250		5,183
New York & Co., Inc.*		1,249		10,442
Omnicom Group, Inc.		168		8,234
Pinnacle Entertainment, Inc.*		76		1,054
Priceline.com, Inc.*		44		5,919
Regis Corp.		147		4,460
Rent-A-Center, Inc.*		245		5,140
Sony Corp. (Japan)		502		25,108
Sotheby's		250		6,705
Speedway Motorsports, Inc.		99		2,524
Steven Madden Ltd.*		250		5,123
Target Corp.		753		40,179
Tempur-Pedic International, Inc.		585		6,283
Time Warner, Inc.		2,000		31,760
Toyota Motor Corp. (Japan)		1,506		76,610
Under Armour, Inc., Class A*		116		4,153
Universal Technical Institute, Inc.*		753		9,729
Viacom, Inc., Class B*		1,384		49,574
Yum! Brands, Inc.		1,249		49,584
				799,939
CONSUMER STAPLES—2.6%
Altria Group, Inc.		1,342		29,873
British American Tobacco PLC (United Kingdom)		210		7,835
Carrefour SA (France)		86		6,023
Coca-Cola (The) Co.		1,509		86,405
ConAgra Foods, Inc.		1,751		41,289

	Number of Shares		Market Value
CONSUMER STAPLES (Continued)
CVS Caremark Corp.		753	$	32,221
Diageo PLC (United Kingdom)		643		12,516
Groupe DANONE (France)		24		2,099
Kraft Foods, Inc., Class A		1,342		43,588
Longs Drug Stores Corp.		250		11,855
Nestle SA (Switzerland)		161		78,978
Pilgrim's Pride Corp.		250		6,500
Procter & Gamble (The) Co.		1,866		123,250
Reckitt Benckiser Group PLC (United Kingdom)		85		4,996
Ruddick Corp.		42		1,492
Tesco PLC (United Kingdom)		2,116		17,316
Unilever NV (Netherlands)		551		17,986
Unilever PLC (United Kingdom)		172		5,680
Wal-Mart Stores, Inc.		2,000		115,480
				645,382
ENERGY—3.7%
Alon USA Energy, Inc.		250		3,828
Atwood Oceanics, Inc.*		30		3,057
BG Group PLC (United Kingdom)		975		24,393
BP PLC (United Kingdom)		6,502		78,124
Chevron Corp.		1,003		99,447
ConocoPhillips		1,003		93,379
Dril-Quip, Inc.*		250		14,585
ENI S.p.A (Italy)		483		19,651
EOG Resources, Inc.		987		126,958
Exterran Holdings, Inc.*		14		1,029
Exxon Mobil Corp.		1,756		155,863
International Coal Group, Inc.*		3,006		30,270
Newpark Resources, Inc.*		1,494		10,533
Occidental Petroleum Corp.		250		22,983
Oil States International, Inc.*		250		14,605
Oilsands Quest, Inc.*		1,920		8,774
PetroHawk Energy Corp.*		497		14,602
Petroleum Development Corp.*		250		17,275
Repsol YPF SA (Spain)		157		6,490
Royal Dutch Shell PLC, Class A (United Kingdom)		1,194		50,731
Royal Dutch Shell PLC, Class B (United Kingdom)		877		36,482
Schlumberger Ltd. (Netherlands Antilles)		390		39,441
Ship Finance International Ltd. (Bermuda)		183		5,616
Total SA (France)		379		33,036
W-H Energy Services, Inc.*		250		21,383
				932,535
FINANCIALS—6.2%
Advance America Cash Advance Centers, Inc.		125		868
Alexandria Real Estate Equities, Inc. REIT		30		3,129
Allianz SE (Germany)		111		20,992
American Express Co.		2,246		104,101
American International Group, Inc.		418		15,048
Apollo Investment Corp.		330		5,957
Aspen Insurance Holdings Ltd. (Bermuda)		286		7,311
Assicurazioni Generali S.p.A (Italy)		50		2,077
Aviva PLC (United Kingdom)		782		9,744

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
FINANCIALS (Continued)
AXA (France)		407	$	14,364
Banco Bilbao Vizcaya Argentaria SA (Spain)		250		5,567
Banco Santander SA (Spain)		3,939		81,966
Bank of America Corp.		1,249		42,478
Barclays PLC (United Kingdom)		3,284		24,337
BNP Paribas (France)		212		21,856
Calamos Asset Management, Inc., Class A		217		4,390
Cascade Bancorp		448		3,929
Charles Schwab (The) Corp.		2,835		62,879
Citigroup, Inc.		1,751		38,329
CME Group, Inc.		37		15,921
Cohen & Steers, Inc.		91		2,746
Commonwealth Bank of Australia (Australia)		10		404
Credit Suisse Group (Switzerland)		708		35,985
Deerfield Capital Corp. REIT		2,636		2,451
Delphi Financial Group, Inc., Class A		250		7,223
Deutsche Bank AG (Germany)		20		2,136
Digital Realty Trust, Inc. REIT		589		24,915
Dollar Financial Corp.*		250		4,983
FelCor Lodging Trust, Inc. REIT		121		1,798
First Industrial Realty Trust, Inc. REIT		32		1,003
Fortis (Belgium)		199		4,868
Franklin Resources, Inc.		589		59,618
GAMCO Investors, Inc., Class A		23		1,221
GFI Group, Inc.		934		11,059
Goldman Sachs Group (The), Inc.		168		29,637
Greenhill & Co., Inc.		20		1,205
Greenlight Capital Re Ltd., Class A (Cayman Islands)*		230		4,533
HBOS PLC (United Kingdom)		1,393		11,011
Highwoods Properties, Inc. REIT		585		21,060
HSBC Holdings PLC (United Kingdom)		3,815		64,271
ING Groep NV (Netherlands)		693		26,429
Intesa Sanpaolo S.p.A (Italy)		618		4,048
JPMorgan Chase & Co.		1,003		43,129
Lincoln National Corp.		1,003		55,324
Lloyds TSB Group PLC (United Kingdom)		2,972		22,553
Mitsubishi UFJ Financial Group, Inc. (Japan)		3,765		38,447
Mizuho Financial Group, Inc. (Japan)		4		20,992
Montpelier Re Holdings Ltd. (Bermuda)		281		4,712
Morgan Stanley		168		7,431
Muenchener Rueckversicherungs-Gesellschaft AG (Germany)		50		9,363
National Australia Bank Ltd. (Australia)		126		3,761
National City Corp.		2,001		11,686
Nationwide Health Properties, Inc. REIT		64		2,184
Nomura Holdings, Inc. (Japan)		1,509		25,601
Nordea Bank AB (Sweden)		1,994		32,376
Northern Trust Corp.		585		44,460
NYSE Euronext		478		30,554
Odyssey Re Holdings Corp.		585		21,961
optionsXpress Holdings, Inc.		610		13,932
PHH Corp.*		250		4,708
Platinum Underwriters Holdings Ltd. (Bermuda)		177		6,278
Post Properties, Inc. REIT		250		8,878
Potlatch Corp. REIT		64		3,094
Prudential PLC (United Kingdom)		738		9,699

	Number of Shares		Market Value
FINANCIALS (Continued)
Ramco-Gershenson Properties Trust REIT		289	$	6,459
Realty Income Corp. REIT		753		18,449
Royal Bank of Scotland Group PLC (United Kingdom)		4,129		18,645
Simon Property Group, Inc. REIT		418		41,532
SLM Corp.*		1,003		22,738
Societe Generale (France)		60		6,229
Sumitomo Mitsui Financial Group, Inc. (Japan)		3		25,776
SVB Financial Group*		122		6,253
Swiss Re (Switzerland)		121		9,375
UBS AG (Switzerland)*		1,084		26,043
UniCredito Italiano S.p.A (Italy)		3,259		22,753
Vornado Realty Trust REIT		250		24,433
Wachovia Corp.		757		18,017
Waddell & Reed Financial, Inc., Class A		250		8,840
Washington Real Estate Investment Trust REIT		58		1,954
Wells Fargo & Co.		1,003		27,653
Westpac Banking Corp. (Australia)		244		5,409
Zurich Financial Services AG (Switzerland)		60		17,559
				1,537,087
HEALTH CARE—3.7%
Abbott Laboratories		1,003		56,519
Alexion Pharmaceuticals, Inc.*		136		9,704
Alpharma, Inc., Class A*		60		1,511
AMERIGROUP Corp.*		527		14,550
AstraZeneca PLC (United Kingdom)		394		17,169
Auxilium Pharmaceuticals, Inc.*		452		14,392
Becton, Dickinson & Co.		835		70,516
Bio-Rad Laboratories, Inc., Class A*		43		3,848
CIGNA Corp.		835		33,901
Dendreon Corp.*		1,179		6,131
Genzyme Corp.*		924		63,257
GlaxoSmithKline PLC (United Kingdom)		1,526		33,579
Healthspring, Inc.*		58		1,078
Hologic, Inc.*		500		12,015
Illumina, Inc.*		197		15,461
Inverness Medical Innovations, Inc.*		30		1,097
Johnson & Johnson		1,698		113,324
Kindred Healthcare, Inc.*		139		3,835
Magellan Health Services, Inc.*		250		10,063
McKesson Corp.		835		48,138
Merck & Co., Inc.		1,249		48,661
Novartis AG (Switzerland)		933		48,894
Perrigo Co.		193		7,066
Pfizer, Inc.		4,878		94,437
Psychiatric Solutions, Inc.*		54		1,969
Roche Holding AG (Switzerland)		325		55,901
Sanofi-Aventis SA (France)		91		6,775
Sirona Dental Systems, Inc.*		38		1,127
STERIS Corp.		250		7,563
Sunrise Senior Living, Inc.*		137		3,628
Takeda Pharmaceutical Co. Ltd. (Japan)		126		7,293
Thermo Fisher Scientific, Inc.*		1,249		73,715
UnitedHealth Group, Inc.		753		25,760
WellPoint, Inc.*		250		13,955
				926,832

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
INDUSTRIALS—3.3%
ABB Ltd. (Switzerland)		817	$	26,479
ABM Industries, Inc.		225		4,912
Acuity Brands, Inc.		33		1,757
Aecom Technology Corp.*		470		15,139
Allegiant Travel Co.*		634		13,251
Belden, Inc.		69		2,890
Boeing Co.		589		48,752
Brady Corp., Class A		585		22,645
Caterpillar, Inc.		585		48,344
CDI Corp.		753		21,461
Compagnie de Saint-Gobain (France)		84		6,767
Curtiss-Wright Corp.		60		3,091
Danaher Corp.		168		13,134
Emerson Electric Co.		753		43,810
FedEx Corp.		168		15,407
FreightCar America, Inc.		85		3,706
Fuel Tech, Inc.*		595		15,137
General Electric Co.		2,082		63,958
Granite Construction, Inc.		250		9,143
IKON Office Solutions, Inc.		421		5,090
Illinois Tool Works, Inc.		250		13,425
Ingersoll-Rand Co. Ltd., Class A (Bermuda)		151		6,650
JetBlue Airways Corp.*		1,870		7,424
Koninklijke (Royal) Philips Electronics NV (Netherlands)		340		13,040
Manpower, Inc.		250		15,750
MPS Group, Inc.*		250		2,870
Mitsubishi Corp. (Japan)		502		17,310
Northrop Grumman Corp.		757		57,123
Raven Industries, Inc.		443		16,723
Regal-Beloit Corp.		65		3,023
Schneider Electric SA (France)		15		1,882
Seaboard Corp.		5		8,975
Siemens AG (Germany)		141		15,978
Simpson Manufacturing Co., Inc.		753		19,864
Trane, Inc.		1,003		46,559
Union Pacific Corp.		336		27,656
United Parcel Service, Inc., Class B		589		41,831
United Stationers, Inc.*		67		2,837
United Technologies Corp.		1,588		112,811
Waste Connections, Inc.*		121		3,972
Watson Wyatt Worldwide, Inc., Class A		32		1,874
				822,450
INFORMATION TECHNOLOGY—3.6%
Accenture Ltd., Class A (Bermuda)		402		16,410
Agilysys, Inc.		250		2,610
Amkor Technology, Inc.*		1,003		10,692
Ansoft Corp.*		589		21,487
Benchmark Electronics, Inc.*		250		4,443
CANON, Inc. (Japan)		502		27,058
Cisco Systems, Inc.*		1,751		46,787
eBay, Inc.*		1,342		40,273
Entegris, Inc.*		497		3,822
Equinix, Inc.*		16		1,528
FLIR Systems, Inc.*		500		19,710
Foundry Networks, Inc.*		753		10,241
Google, Inc., Class A*		48		28,118

	Number of Shares		Market Value
INFORMATION TECHNOLOGY (Continued)
Hewlett-Packard Co.		753	$	35,436
Intel Corp.		1,921		44,529
International Business Machines Corp.		250		32,358
Ixia*		1,509		12,208
Jack Henry & Associates, Inc.		250		5,950
Juniper Networks, Inc.*		966		26,584
Lawson Software, Inc.*		1,053		9,182
Microsoft Corp.		3,341		94,616
Motorola, Inc.		7,419		69,219
Nintendo Co. Ltd. (Japan)		5		2,747
Nokia Oyj (Finland)		1,266		36,456
Nuance Communications, Inc.*		778		15,342
ON Semiconductor Corp.*		1,003		9,920
Orbcomm, Inc.*		1,875		11,606
Park Electrochemical Corp.		41		1,212
Perficient, Inc.*		753		7,989
Perot Systems Corp., Class A*		757		12,506
Photronics, Inc.*		379		3,403
Quest Software, Inc.*		197		3,351
SAIC, Inc.*		953		18,993
SAP AG (Germany)		215		11,868
SAVVIS, Inc.*		240		4,003
Sonus Networks, Inc.*		1,209		5,187
Sun Microsystems, Inc.*		5,247		67,949
Sybase, Inc.*		250		8,005
Symantec Corp.*		1,756		38,158
Telefonaktiebolaget LM Ericsson (Sweden)		8,648		23,503
THQ, Inc.*		67		1,437
TIBCO Software, Inc.*		355		2,741
ValueClick, Inc.*		753		15,143
Veeco Instruments, Inc.*		753		14,480
Xerox Corp.		1,249		16,961
				896,221
MATERIALS—2.0%
A. Schulman, Inc.		250		5,648
Alcoa, Inc.		753		30,564
Anglo American PLC (United Kingdom)		677		45,743
AptarGroup, Inc.		33		1,476
ArcelorMittal (Luxembourg)		126		12,497
BASF AG (Germany)		50		7,489
Bayer AG (Germany)		80		7,086
BHP Billiton Ltd. (Australia)		698		28,950
BHP Billiton PLC (United Kingdom)		1,013		38,316
CF Industries Holdings, Inc.		250		34,225
Dow Chemical (The) Co.		585		23,634
E.I. du Pont de Nemours & Co.		753		36,076
Glatfelter		163		2,540
Headwaters, Inc.*		290		3,152
JFE Holdings, Inc. (Japan)		505		28,511
NIPPON STEEL Corp. (Japan)		5,020		31,338
Rio Tinto PLC (United Kingdom)		365		43,675
Rockwood Holdings, Inc.*		40		1,469
Southern Copper Corp.		330		36,375
Terra Industries, Inc.		535		23,342
Weyerhaeuser Co.		585		36,462
Xstrata PLC (United Kingdom)		235		18,525
				497,093

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
TELECOMMUNICATION SERVICES—1.2%
Alaska Communications Systems Group, Inc.		283	$	3,662
AT&T, Inc.		2,440		97,356
BT Group PLC (United Kingdom)		2,416		10,599
Deutsche Telekom AG (Germany)		70		1,171
France Telecom SA (France)		3		91
Koninklijke (Royal) KPN NV (Netherlands)		570		10,364
Qwest Communications International, Inc.		10,047		48,728
Telefonica SA (Spain)		1,123		32,199
Time Warner Telecom, Inc., Class A*		427		7,985
Verizon Communications, Inc.		1,003		38,585
Vodafone Group PLC (United Kingdom)		18,048		57,869
				308,609
UTILITIES—1.3%
ALLETE, Inc.		84		3,731
American Electric Power Co., Inc.		753		31,874
American States Water Co.		70		2,363
Constellation Energy Group, Inc.		589		50,789
E.ON AG (Germany)		60		12,752
Endesa SA (Spain)		565		28,993
Enel S.p.A (Italy)		812		9,117
Exelon Corp.		1,249		109,911
MGE Energy, Inc.		142		4,878
National Grid PLC (United Kingdom)		918		13,534
PNM Resources, Inc.		250		3,713
RWE AG (Germany)		55		7,102
Suez SA (France)		111		8,263
Tokyo Electric Power (The) Co., Inc. (Japan)		1,004		24,443
Westar Energy, Inc.		250		6,000
				317,463
Total Common Stocks (Cost $8,094,282)				7,683,611
RIGHTS—0.0%
FINANCIALS—0.0%
UBS AG Rights, expiring 6/12/08 (Cost $0)		1,084		1,442
	Principal Amount		Market Value
CORPORATE BONDS—35.8%
CONSUMER DISCRETIONARY—1.9%
Comcast Cable Communications Holdings, Inc. 8.375%, 3/15/13	$	189,000		208,642
Daimler Finance North America LLC 7.30%, 1/15/12		102,000		108,221
Home Depot (The), Inc. 5.40%, 3/01/16		177,000		166,862
				483,725
CONSUMER STAPLES—1.7%
Diageo Finance BV (Netherlands) 5.30%, 10/28/15		127,000		124,594
Kroger (The) Co. 5.50%, 2/01/13		77,000		77,543
Wal-Mart Stores, Inc. 4.55%, 5/01/13		230,000		232,307
				434,444

	Principal Amount		Market Value
ENERGY—2.2%
Apache Corp. 5.25%, 4/15/13	$	105,000	$	106,589
Enterprise Products Operating LP, Series B 5.60%, 10/15/14		100,000		97,213
Hess Corp. 6.65%, 8/15/11		135,000		141,794
Kinder Morgan Energy Partners LP 6.75%, 3/15/11		59,000		61,031
Spectra Energy Capital LLC 6.25%, 2/15/13		152,000		154,632
				561,259
FINANCIALS—23.7%
American General Finance Corp., Series H MTN 5.375%, 10/01/12		203,000		196,559
Ameriprise Financial, Inc. 5.35%, 11/15/10		137,000		137,384
Bank of America Corp. 4.50%, 8/01/10		310,000		312,590
4.875%, 1/15/13		27,000		26,666
Boeing Capital Corp. Ltd. 5.80%, 1/15/13		102,000		106,905
Boston Properties LP 6.25%, 1/15/13		184,000		187,821
Capital One Financial Corp. 6.15%, 9/01/16		152,000		135,608
Citigroup, Inc. 6.00%, 2/21/12		608,000		618,668
European Investment Bank (Supranational) 4.625%, 5/15/14		205,000		210,320
General Electric Capital Corp., Series A MTN 5.875%, 2/15/12		187,000		193,483
Genworth Financial, Inc. 5.75%, 6/15/14		102,000		99,491
Goldman Sachs Group, LP 5.00%, 10/01/14		357,000		342,098
Goldman Sachs Group (The), Inc. 3.875%, 1/15/09		127,000		127,024
HSBC Finance Corp. 6.375%, 11/27/12		257,000		264,751
5.50%, 1/19/16		100,000		96,895
International Lease Finance Corp. Series Q MTN 5.75%, 6/15/11		257,000		254,016
iStar Financial, Inc., Series 1 5.875%, 3/15/16		93,000		80,216
John Deere Capital Corp. 7.00%, 3/15/12		102,000		109,819
JPMorgan Chase & Co. 5.75%, 1/02/13		127,000		130,218
Kreditanstalt fuer Wiederaufbau (Germany) 4.25%, 6/15/10		187,000		191,697
Lehman Brothers Holdings, Inc. MTN 5.50%, 4/04/16		152,000		137,265
Marsh & McLennan Cos., Inc. 5.75%, 9/15/15		150,000		147,461
Merrill Lynch & Co, Inc., Series C MTN 5.00%, 1/15/15		407,000		376,142
MetLife, Inc. 5.00%, 6/15/15		102,000		99,313

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Principal Amount		Market Value
FINANCIALS (Continued)
Morgan Stanley 5.05%, 1/21/11	$	100,000	$	97,777
5.30%, 3/01/13		273,000		266,197
National Rural Utilities Cooperative Finance Corp., Series C MTN 7.25%, 3/01/12		112,000		119,593
Royal Bank of Scotland Group PLC (United Kingdom) 5.00%, 10/01/14		144,000		136,862
SLM Corp., Series A MTN 5.375%, 5/15/14		68,000		57,776
Wachovia Corp. 5.25%, 8/01/14		357,000		346,189
Wells Fargo & Co. 5.00%, 11/15/14		317,000		308,594
				5,915,398
HEALTH CARE—1.3%
AmerisourceBergen Corp. 5.875%, 9/15/15		102,000		98,579
UnitedHealth Group, Inc. 4.875%, 3/15/15		147,000		134,802
WellPoint, Inc. 5.25%, 1/15/16		95,000		88,783
				322,164
INDUSTRIALS—0.6%
United Technologies Corp. 4.375%, 5/01/10		152,000		153,466
INFORMATION TECHNOLOGY—0.9%
International Business Machines Corp. 4.25%, 9/15/09		112,000		113,391
Oracle Corp. 5.25%, 1/15/16		112,000		111,122
				224,513
MATERIALS—0.7%
Alcoa, Inc. 6.00%, 1/15/12		160,000		162,754
TELECOMMUNICATION SERVICES—1.6%
Embarq Corp. 7.082%, 6/01/16		82,000		79,861
New Cingular Wireless Services, Inc. 7.875%, 3/01/11		294,000		315,154
				395,015
UTILITIES—1.2%
Constellation Energy Group, Inc. 4.55%, 6/15/15		85,000		76,554
Dominion Resources, Inc., Series C 5.15%, 7/15/15		167,000		161,945
Exelon Generation Co. LLC 5.35%, 1/15/14		59,000		56,859
				295,358
Total Corporate Bonds (Amortized Cost $9,019,929)				8,948,096

	Principal Amount		Market Value
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS—29.3%
FEDERAL HOME LOAN MORTGAGE CORP.—5.2%
4.50%, 1/15/13	$	1,268,000	$	1,294,935
FEDERAL NATIONAL MORTGAGE ASSOCIATION—6.1%
5.00%, 9/15/08		908,000		915,575
5.00%, 4/15/15		588,000		610,590
				1,526,165
UNITED STATES TREASURY BONDS/NOTES—18.0%
5.125%, 6/30/08		126,800		127,176
4.75%, 11/15/08		712,800		721,711
6.00%, 8/15/09		2,304,100		2,402,746
3.50%, 2/15/10		799,000		811,859
4.75%, 5/15/14		396,300		422,431
				4,485,923
Total United States Government & Agencies Obligations (Amortized Cost $7,231,424)				7,307,023
SOVEREIGN BONDS—1.4%
Italy Government International Bond (Italy) 6.00%, 2/22/11		220,000		234,510
United Mexican States, Series A MTN (Mexico) 6.375%, 1/16/13		98,000		105,203
Total Sovereign Bonds (Amortized Cost $334,601)				339,713
Total Investments—97.3% (Amortized Cost $24,680,236)			$	24,279,885
Cash Equivalents—1.7% (a)				417,350
Other assets less liabilities—1.0%				256,106
Net Assets—100.0%			$	24,953,341

MTN - Medium Term Note.

REIT - Real Estate Investment Trust.

* Non-income producing security.

(a) Represents an investment in BNY Hamilton Money Fund, Institutional Shares with annualized 7-day yield of 2.53% at May 31, 2008.

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND (Continued)

COUNTRY BREAKDOWN AS OF MAY 31, 2008

	Market Value		% of Net Assets
United States	$	21,164,113		84.9	%
United Kingdom		814,204		3.3
Japan		396,252		1.6
Switzerland		309,733		1.2
Germany		293,716		1.2
Italy		292,156		1.2
Supranational		210,320		0.8
Netherlands		192,413		0.8
Spain		155,215		0.6
France		107,385		0.4
Mexico		105,203		0.4
Sweden		55,879		0.2
Bermuda		46,977		0.2
Netherlands Antilles		39,441		0.2
Australia		38,524		0.2
Finland		36,456		0.1
Luxembourg		12,497		0.0
Belgium		4,868		0.0
Cayman Islands		4,533		0.0
Total Investments		24,279,885		97.3
Cash Equivalents		417,350		1.7
Other assets less liabilities		256,106		1.0
Net Assets	$	24,953,341		100.0	%

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS

TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND

May 31, 2008

	Number of Shares		Market Value
COMMON STOCKS—64.3%
CONSUMER DISCRETIONARY—6.9%
Aeropostale, Inc.*		2,186	$	76,379
ArvinMeritor, Inc.		3,355		50,224
Brookfield Homes Corp.		2,238		33,794
Cabela's, Inc., Class A*		3,849		53,309
Coach, Inc.*		3,355		121,787
Columbia Sportswear Co.		180		7,888
Comcast Corp., Class A		8,635		194,288
Compagnie Financiere Richemont SA, Class A (Switzerland)		426		26,484
Daimler AG (Germany)		427		32,462
DeVry, Inc.		1,125		64,181
DIRECTV Group (The), Inc.*		8,915		250,512
Fleetwood Enterprises, Inc.*		5,593		23,267
Home Depot (The), Inc.		2,445		66,895
HONDA MOTOR Co. Ltd. (Japan)		2,705		90,453
J. Crew Group, Inc.*		797		29,704
Jo-Ann Stores, Inc.*		1,509		33,968
Johnson Controls, Inc.		746		25,409
Jos. A. Bank Clothiers, Inc.*		1,125		30,600
Lear Corp.*		1,058		27,244
Liberty Global, Inc., Class A*		2,418		86,685
Live Nation, Inc.*		1,507		22,831
Matsushita Electric Industrial Co. Ltd. (Japan)		2,254		51,244
McDonald's Corp.		4,267		253,117
Men's Wearhouse (The), Inc.		1,125		23,321
New York & Co., Inc.*		6,008		50,227
Omnicom Group, Inc.		1,334		65,379
Priceline.com, Inc.*		208		27,982
Regis Corp.		208		6,311
Rent-A-Center, Inc.*		108		2,266
Sony Corp. (Japan)		2,479		123,991
Sotheby's		1,059		28,402
Speedway Motorsports, Inc.		94		2,396
Steven Madden Ltd.*		1,325		27,149
Target Corp.		3,355		179,023
Tempur-Pedic International, Inc.		2,128		22,855
Time Warner, Inc.		7,125		113,145
Toyota Motor Corp. (Japan)		5,424		275,913
Universal Technical Institute, Inc.*		2,238		28,915
Viacom, Inc., Class B*		4,945		177,130
Yum! Brands, Inc.		4,610		183,017
				2,990,147
CONSUMER STAPLES—5.4%
Altria Group, Inc.		4,677		104,110
British American Tobacco PLC (United Kingdom)		842		31,416
Carrefour SA (France)		473		33,129
Coca-Cola (The) Co.		5,261		301,245
ConAgra Foods, Inc.		6,712		158,269
CVS Caremark Corp.		1,125		48,139
Diageo PLC (United Kingdom)		1,701		33,111
Groupe DANONE (France)		423		36,990
Kraft Foods, Inc., Class A		4,475		145,348
Longs Drug Stores Corp.		1,125		53,348
Nestle SA (Switzerland)		581		285,008
Pilgrim's Pride Corp.		1,125		29,250

	Number of Shares		Market Value
CONSUMER STAPLES (Continued)
Procter & Gamble (The) Co.		7,031	$	464,397
Reckitt Benckiser Group PLC (United Kingdom)		94		5,525
Ruddick Corp.		341		12,116
Tesco PLC (United Kingdom)		13,093		107,146
Unilever NV (Netherlands)		2,664		86,960
Unilever PLC (United Kingdom)		499		16,478
Wal-Mart Stores, Inc.		7,125		411,397
				2,363,382
ENERGY—7.9%
Alon USA Energy, Inc.		1,125		17,224
Atwood Oceanics, Inc.*		23		2,344
BG Group PLC (United Kingdom)		2,424		60,645
BP PLC (United Kingdom)		24,952		299,805
Chevron Corp.		3,933		389,957
ConocoPhillips		3,569		332,274
Dril-Quip, Inc.*		1,094		63,824
ENI S.p.A (Italy)		1,004		40,848
EOG Resources, Inc.		3,043		391,421
Exxon Mobil Corp.		6,326		561,496
Halliburton Co.		199		9,667
International Coal Group, Inc.*		11,719		118,010
Newpark Resources, Inc.*		6,207		43,759
Occidental Petroleum Corp.		1,325		121,807
Oil States International, Inc.*		1,125		65,723
Oilsands Quest, Inc.*		6,906		31,560
PetroHawk Energy Corp.*		2,445		71,834
Petroleum Development Corp.*		1,125		77,738
Royal Dutch Shell PLC, Class A (United Kingdom)		5,072		215,501
Royal Dutch Shell PLC, Class B (United Kingdom)		3,779		157,203
Schlumberger Ltd. (Netherlands Antilles)		1,579		159,684
Total SA (France)		1,293		112,706
W-H Energy Services, Inc.*		964		82,451
				3,427,481
FINANCIALS—12.7%
Alexandria Real Estate Equities, Inc. REIT		11		1,147
Allianz SE (Germany)		460		86,992
American Express Co.		8,246		382,201
American International Group, Inc.		2,359		84,924
Apollo Investment Corp.		532		9,603
Aspen Insurance Holdings Ltd. (Bermuda)		1,543		39,439
Assicurazioni Generali S.p.A (Italy)		311		12,919
Australia & New Zealand Banking Group Ltd. (Australia)		211		4,362
Aviva PLC (United Kingdom)		2,220		27,661
AXA (France)		1,325		46,763
Banco Bilbao Vizcaya Argentaria SA (Spain)		797		17,749
Banco Santander SA (Spain)		14,763		307,199
Bank of America Corp.		4,677		159,065
Barclays PLC (United Kingdom)		10,103		74,871
BNP Paribas (France)		512		52,785
Calamos Asset Management, Inc., Class A		2,238		45,275
Cascade Bancorp		2,238		19,627

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
FINANCIALS (Continued)
Charles Schwab (The) Corp.		9,568	$	212,218
Citigroup, Inc.		6,008		131,515
CME Group, Inc.		151		64,975
Cohen & Steers, Inc.		1,125		33,953
Commerce Group (The), Inc.		1,125		41,366
Commonwealth Bank of Australia (Australia)		37		1,493
Credit Suisse Group (Switzerland)		2,319		117,864
Deerfield Capital Corp. REIT		9,620		8,947
Delphi Financial Group, Inc., Class A		281		8,118
Digital Realty Trust, Inc. REIT		1,125		47,588
Dollar Financial Corp.*		1,325		26,407
FelCor Lodging Trust, Inc. REIT		2,180		32,395
Fortis (Belgium)		958		23,433
Franklin Resources, Inc.		1,905		192,824
GFI Group, Inc.		834		9,875
Goldman Sachs Group (The), Inc.		332		58,568
Greenlight Capital Re Ltd., Class A (Cayman Islands)*		1,967		38,770
HBOS PLC (United Kingdom)		4,740		37,469
Highwoods Properties, Inc. REIT		1,125		40,500
HSBC Holdings PLC (United Kingdom)		15,070		253,886
ING Groep NV (Netherlands)		2,975		113,456
Intesa Sanpaolo S.p.A (Italy)		2,403		15,740
JPMorgan Chase & Co.		3,569		153,467
Lincoln National Corp.		3,389		186,937
Lloyds TSB Group PLC (United Kingdom)		7,386		56,049
Mitsubishi UFJ Financial Group, Inc. (Japan)		14,200		145,006
Mizuho Financial Group, Inc. (Japan)		17		89,215
Montpelier Re Holdings Ltd. (Bermuda)		600		10,062
Morgan Stanley		1,325		58,605
Muenchener Rueckversicherungs-Gesellschaft AG (Germany)		35		6,554
National Australia Bank Ltd. (Australia)		417		12,449
National City Corp.		8,968		52,373
Nationwide Health Properties, Inc. REIT		1,125		38,396
Nomura Holdings, Inc. (Japan)		4,508		76,482
Nordea Bank AB (Sweden)		5,409		87,824
Northern Trust Corp.		2,238		170,088
NYSE Euronext		2,264		144,715
Odyssey Re Holdings Corp.		1,121		42,082
optionsXpress Holdings, Inc.		1,325		30,263
PHH Corp.*		1,125		21,184
Platinum Underwriters Holdings Ltd. (Bermuda)		436		15,465
Post Properties, Inc. REIT		1,125		39,949
Potlatch Corp. REIT		37		1,789
Prudential PLC (United Kingdom)		2,655		34,891
Ramco-Gershenson Properties Trust REIT		1,125		25,144
Realty Income Corp. REIT		1,125		27,563
Royal Bank of Scotland Group PLC (United Kingdom)		14,056		63,471
Simon Property Group, Inc. REIT		1,767		175,569
SLM Corp.*		4,606		104,418
Societe Generale (France)		263		27,302
Sumitomo Mitsui Financial Group, Inc. (Japan)		9		77,327
SVB Financial Group*		1,180		60,475
Swiss Re (Switzerland)		177		13,714

	Number of Shares		Market Value
FINANCIALS (Continued)
UBS AG (Switzerland)*		4,433	$	106,502
UniCredito Italiano S.p.A (Italy)		9,659		67,435
Vornado Realty Trust REIT		1,334		130,372
Wachovia Corp.		3,780		89,964
Waddell & Reed Financial, Inc., Class A		209		7,390
Washington Real Estate Investment Trust REIT		208		7,008
Wells Fargo & Co.		2,655		73,198
Westpac Banking Corp. (Australia)		1,424		31,567
Zurich Financial Services AG (Switzerland)		281		82,236
				5,528,442
HEALTH CARE—7.8%
Abbott Laboratories		3,569		201,113
Alexion Pharmaceuticals, Inc.*		469		33,463
AMERIGROUP Corp.*		1,125		31,061
AstraZeneca PLC (United Kingdom)		1,199		52,247
Auxilium Pharmaceuticals, Inc.*		2,846		90,617
Becton, Dickinson & Co.		2,445		206,480
Bio-Rad Laboratories, Inc., Class A*		32		2,863
CIGNA Corp.		2,238		90,863
Dendreon Corp.*		10,437		54,272
Genzyme Corp.*		3,434		235,092
GlaxoSmithKline PLC (United Kingdom)		5,575		122,678
Hologic, Inc.*		1,884		45,273
Illumina, Inc.*		788		61,842
Inverness Medical Innovations, Inc.*		34		1,243
Johnson & Johnson		6,008		400,973
Kindred Healthcare, Inc.*		273		7,532
Magellan Health Services, Inc.*		1,125		45,281
McKesson Corp.		2,238		129,021
Merck & Co., Inc.		4,677		182,216
Novartis AG (Switzerland)		3,367		176,447
Perrigo Co.		505		18,488
Pfizer, Inc.		19,190		371,518
Psychiatric Solutions, Inc.*		208		7,586
Roche Holding AG (Switzerland)		1,217		209,327
Sanofi-Aventis SA (France)		190		14,146
Sirona Dental Systems, Inc.*		1,125		33,368
STERIS Corp.		494		14,944
Sunrise Senior Living, Inc.*		216		5,720
Takeda Pharmaceutical Co. Ltd. (Japan)		902		52,207
Thermo Fisher Scientific, Inc.*		4,839		285,598
UnitedHealth Group, Inc.		4,182		143,066
WellPoint, Inc.*		1,334		74,464
				3,401,009
INDUSTRIALS—6.7%
ABB Ltd. (Switzerland)		3,011		97,586
ABM Industries, Inc.		389		8,492
Acuity Brands, Inc.		116		6,177
Aecom Technology Corp.*		2,655		85,518
Allegiant Travel Co.*		1,687		35,258
Belden, Inc.		1,125		47,126
Boeing Co.		1,125		93,116
Brady Corp., Class A		1,125		43,549
Caterpillar, Inc.		2,238		184,948
CDI Corp.		1,325		37,763

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
INDUSTRIALS (Continued)
Compagnie de Saint-Gobain (France)		614	$	49,465
Curtiss-Wright Corp.		107		5,512
Danaher Corp.		540		42,217
Emerson Electric Co.		1,325		77,089
FedEx Corp.		408		37,418
FreightCar America, Inc.		128		5,581
Fuel Tech, Inc.*		2,814		71,588
General Electric Co.		8,914		273,837
Granite Construction, Inc.		1,125		41,141
IKON Office Solutions, Inc.		400		4,836
Illinois Tool Works, Inc.		2,238		120,181
Ingersoll-Rand Co. Ltd., Class A (Bermuda)		399		17,572
JetBlue Airways Corp.*		3,996		15,864
Koninklijke (Royal) Philips Electronics NV (Netherlands)		1,388		53,235
Manpower, Inc.		1,125		70,875
Mitsubishi Corp. (Japan)		2,705		93,271
Northrop Grumman Corp.		2,445		184,500
PACCAR, Inc.		432		23,064
Raven Industries, Inc.		1,125		42,469
Regal-Beloit Corp.		168		7,812
Seaboard Corp.		18		32,310
Siemens AG (Germany)		527		59,720
Simpson Manufacturing Co., Inc.		2,238		59,038
Trane, Inc.		3,142		145,852
Union Pacific Corp.		1,950		160,505
United Parcel Service, Inc., Class B		1,196		84,940
United Stationers, Inc.*		1,125		47,633
United Technologies Corp.		5,649		401,304
Waste Connections, Inc.*		322		10,571
Watson Wyatt Worldwide, Inc., Class A		208		12,183
				2,891,116
INFORMATION TECHNOLOGY—7.6%
Accenture Ltd., Class A (Bermuda)		853		34,819
Agilysys, Inc.		2,445		25,526
Amkor Technology, Inc.*		2,655		28,302
Anixter International, Inc.*		1,113		72,356
Ansoft Corp.*		2,158		78,724
CANON, Inc. (Japan)		2,592		139,710
Cisco Systems, Inc.*		6,712		179,345
eBay, Inc.*		4,475		134,295
Entegris, Inc.*		506		3,891
Equinix, Inc.*		545		52,042
FLIR Systems, Inc.*		2,248		88,616
Foundry Networks, Inc.*		2,445		33,252
Google, Inc., Class A*		243		142,349
Hewlett-Packard Co.		2,234		105,132
Intel Corp.		6,712		155,584
International Business Machines Corp.		1,148		148,586
Ixia*		5,593		45,247
Jack Henry & Associates, Inc.		208		4,950
Juniper Networks, Inc.*		2,445		67,286
Lawson Software, Inc.*		4,105		35,796
MICROS Systems, Inc.*		2,130		70,226
Microsoft Corp.		11,657		330,127
Motorola, Inc.		26,782		249,876
Nintendo Co. Ltd. (Japan)		104		57,140
Nokia Oyj (Finland)		4,005		115,330

	Number of Shares		Market Value
INFORMATION TECHNOLOGY (Continued)
Nuance Communications, Inc.*		1,858	$	36,640
ON Semiconductor Corp.*		2,655		26,258
Orbcomm, Inc.*		4,187		25,918
Perficient, Inc.*		2,238		23,745
Perot Systems Corp., Class A*		2,238		36,972
Photronics, Inc.*		1,040		9,339
Quest Software, Inc.*		212		3,606
SAIC, Inc.*		2,799		55,784
SAP AG (Germany)		680		37,536
SAVVIS, Inc.*		851		14,195
Sonus Networks, Inc.*		5,392		23,132
Spansion, Inc., Class A*		4,376		13,784
Sun Microsystems, Inc.*		11,550		149,572
Sybase, Inc.*		408		13,064
Symantec Corp.*		6,712		145,852
Telefonaktiebolaget LM Ericsson (Sweden)		46,205		125,574
THQ, Inc.*		1,125		24,131
TIBCO Software, Inc.*		541		4,177
ValueClick, Inc.*		1,325		26,646
Veeco Instruments, Inc.*		2,238		43,037
Xerox Corp.		3,978		54,021
				3,291,490
MATERIALS—4.1%
A. Schulman, Inc.		1,325		29,932
Alcoa, Inc.		2,238		90,840
Anglo American PLC (United Kingdom)		2,368		159,997
Aptargroup, Inc.		1,125		50,310
ArcelorMittal (Luxembourg)		536		53,160
BASF AG (Germany)		108		16,174
Bayer AG (Germany)		500		44,290
BHP Billiton Ltd. (Australia)		2,211		91,701
BHP Billiton PLC (United Kingdom)		3,551		134,315
CF Industries Holdings, Inc.		831		113,764
Dow Chemical (The) Co.		1,694		68,438
E.I. du Pont de Nemours and Co.		3,355		160,738
Glatfelter		859		13,383
Greif, Inc., Class A		1,121		75,152
Headwaters, Inc.*		1,038		11,283
JFE Holdings, Inc. (Japan)		902		50,925
Newmont Mining Corp.		350		16,636
NIPPON STEEL Corp. (Japan)		9,016		56,283
Rio Tinto PLC (United Kingdom)		1,378		164,891
Rockwood Holdings, Inc.*		1,125		41,310
Southern Copper Corp.		1,253		138,118
Terra Industries, Inc.		1,235		53,883
Weyerhaeuser Co.		1,776		110,698
Worthington Industries, Inc.		172		3,430
Xstrata PLC (United Kingdom)		689		54,314
				1,803,965
TELECOMMUNICATION SERVICES—2.6%
Alaska Communications Systems Group, Inc.		584		7,557
AT&T, Inc.		8,973		358,024
BT Group PLC (United Kingdom)		6,333		27,784
Deutsche Telekom AG (Germany)		372		6,220
Koninklijke (Royal) KPN NV (Netherlands)		1,033		18,782
Qwest Communications International, Inc.		37,497		181,860
Telefonica SA (Spain)		4,271		122,459

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
TELECOMMUNICATION SERVICES (Continued)
Time Warner Telecom, Inc., Class A*		1,552	$	29,022
Verizon Communications, Inc.		4,475		172,153
Vodafone Group PLC (United Kingdom)		69,410		222,556
				1,146,417
UTILITIES—2.6%
American Electric Power Co., Inc.		3,355		142,017
Constellation Energy Group, Inc.		1,785		153,921
E.ON AG (Germany)		373		79,274
Endesa SA (Spain)		2,145		110,070
Enel S.p.A (Italy)		4,010		45,024
Exelon Corp.		4,526		398,288
MGE Energy, Inc.		423		14,530
National Grid PLC (United Kingdom)		2,355		34,718
PNM Resources, Inc.		408		6,059
RWE AG (Germany)		28		3,616
Suez SA (France)		643		47,864
Tokyo Electric Power (The) Co., Inc. (Japan)		3,719		90,540
Westar Energy, Inc.		588		14,112
				1,140,033
Total Common Stocks (Cost $29,492,362)				27,983,482
RIGHTS—0.0%
FINANCIALS—0.0%
UBS AG Rights, expiring 6/12/08 (Cost $0)		3,934		5,234
	Principal Amount		Market Value
CORPORATE BONDS—22.2%
CONSUMER DISCRETIONARY—1.7%
CBS Corp. 7.875%, 7/30/30	$	45,000		46,679
Comcast Cable Communications Holdings, Inc. 8.375%, 3/15/13		137,000		151,237
Daimler Finance North America LLC 7.30%, 1/15/12		136,000		144,295
Home Depot (The), Inc. 5.40%, 3/01/16		152,000		143,294
News America, Inc. 6.20%, 12/15/34		90,000		84,186
Time Warner, Inc. 7.70%, 5/01/32		90,000		94,433
Viacom, Inc. 6.25%, 4/30/16		81,000		80,388
				744,512
CONSUMER STAPLES—0.7%
Coca-Cola Enterprises, Inc. 8.50%, 2/01/22		99,000		120,018
Diageo Finance BV (Netherlands) 5.30%, 10/28/15		81,000		79,465
Kroger (The) Co. 5.50%, 2/01/13		72,000		72,508
Pepsi Bottling Group (The), Inc., Series B 7.00%, 3/01/29		48,000		53,494
				325,485

	Principal Amount		Market Value
ENERGY—2.1%
Anadarko Petroleum Corp. 5.95%, 9/15/16	$	152,000	$	153,417
Apache Corp. 5.25%, 4/15/13		99,000		100,499
Canadian Natural Resources Ltd. (Canada) 5.70%, 5/15/17		54,000		53,359
ConocoPhillips 5.90%, 10/15/32		169,000		166,516
Enterprise Products Operating LP, Series B 5.60%, 10/15/14		108,000		104,990
Hess Corp. 6.65%, 8/15/11		127,000		133,392
Kinder Morgan Energy Partners LP 6.75%, 3/15/11		54,000		55,858
Spectra Energy Capital LLC 6.25%, 2/15/13		136,000		138,355
				906,386
FINANCIALS—12.9%
Allstate (The) Corp. 5.55%, 5/09/35		90,000		77,427
American General Finance Corp., Series H MTN 5.375%, 10/01/12		282,000		273,052
Bank of America Corp. 4.875%, 1/15/13		338,000		333,816
Boeing Capital Corp. Ltd. 5.80%, 1/15/13		146,000		153,021
Boston Properties LP 6.25%, 1/15/13		178,000		181,697
Capital One Financial Corp. 6.15%, 9/01/16		155,000		138,285
Citigroup, Inc. 6.00%, 2/21/12		607,000		617,648
Credit Suisse (USA), Inc. 7.125%, 7/15/32		127,000		136,021
European Investment Bank (Supranational) 4.625%, 5/15/14		152,000		155,945
General Electric Capital Corp., Series A MTN 5.875%, 2/15/12		108,000		111,744
6.75%, 3/15/32		54,000		54,795
Goldman Sachs Group, LP 5.00%, 10/01/14		409,000		391,928
HSBC Finance Corp. 6.375%, 11/27/12		409,000		421,334
Inter-American Development Bank (Supranational) 4.375%, 9/20/12		227,000		231,600
John Deere Capital Corp. 7.00%, 3/15/12		136,000		146,425
Landwirtschaftliche Rentenbank, Series G MTN (Germany) 5.00%, 11/08/16		227,000		235,332
Lehman Brothers Holdings, Inc. MTN 5.50%, 4/04/16		90,000		81,275
Marsh & McLennan Cos., Inc. 5.75%, 9/15/15		158,000		155,326
Merrill Lynch & Co, Inc., Series C MTN 5.00%, 1/15/15		264,000		243,984

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Principal Amount		Market Value
FINANCIALS (Continued)
MetLife, Inc. 5.00%, 6/15/15	$	182,000	$	177,205
Morgan Stanley 5.30%, 3/01/13		418,000		407,583
National Rural Utilities Cooperative Finance Corp., Series C MTN 7.25%, 3/01/12		81,000		86,492
Royal Bank of Scotland Group PLC (United Kingdom) 5.00%, 10/01/14		108,000		102,647
Unilever Capital Corp. 5.90%, 11/15/32		108,000		105,645
Wachovia Corp. 5.25%, 8/01/14		364,000		352,977
Wells Fargo & Co. 5.00%, 11/15/14		255,000		248,238
				5,621,442
HEALTH CARE—0.8%
Abbott Laboratories 5.875%, 5/15/16		54,000		55,913
UnitedHealth Group, Inc. 4.875%, 3/15/15		155,000		142,138
WellPoint, Inc. 5.25%, 1/15/16		108,000		100,933
Wyeth 5.50%, 2/01/14		54,000		54,319
				353,303
INFORMATION TECHNOLOGY—0.2%
Oracle Corp. 5.25%, 1/15/16		81,000		80,365
MATERIALS—0.9%
Alcoa, Inc. 6.00%, 1/15/12		150,000		152,583
BHP Billiton Finance USA Ltd. (Australia) 4.80%, 4/15/13		63,000		61,865
CRH America, Inc. 6.00%, 9/30/16		54,000		50,389
E.I. du Pont de Nemours & Co. 5.25%, 12/15/16		54,000		53,724
Weyerhaeuser Co. 7.375%, 3/15/32		90,000		89,110
				407,671
TELECOMMUNICATION SERVICES—1.8%
BellSouth Corp. 6.00%, 11/15/34		106,000		98,438
Embarq Corp. 7.082%, 6/01/16		72,000		70,122
New Cingular Wireless Services, Inc. 7.875%, 3/01/11		327,000		350,528
Verizon Global Funding Corp. 7.75%, 12/01/30		164,000		182,387
Vodafone Group PLC (United Kingdom) 5.625%, 2/27/17		81,000		79,966
				781,441

	Principal Amount		Market Value
UTILITIES—1.1%
Constellation Energy Group, Inc. 4.55%, 6/15/15	$	81,000	$	72,952
Dominion Resources, Inc., Series C 5.15%, 7/15/15		152,000		147,397
Exelon Generation Co. LLC 5.35%, 1/15/14		54,000		52,041
FirstEnergy Corp., Series C 7.375%, 11/15/31		54,000		58,264
Oncor Electric Delivery Co. 7.00%, 9/01/22		54,000		52,009
Pacific Gas & Electric Co. 6.05%, 3/01/34		72,000		69,341
				452,004
Total Corporate Bonds (Amortized Cost $9,793,779)				9,672,609
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS—10.6%
FEDERAL HOME LOAN MORTGAGE CORP.—3.0%
4.50%, 1/15/13		728,000		743,464
6.25%, 7/15/32		516,000		588,013
				1,331,477
FEDERAL NATIONAL MORTGAGE ASSOCIATION—0.9%
5.00%, 4/15/15		364,000		377,984
UNITED STATES TREASURY BONDS/NOTES—6.7%
3.50%, 2/15/10		152,200		154,650
4.75%, 5/15/14		384,300		409,640
7.50%, 11/15/16		234,500		292,081
8.125%, 8/15/19		690,900		919,491
7.625%, 2/15/25		529,700		711,081
6.25%, 5/15/30		355,000		429,356
				2,916,299
Total United States Government & Agencies Obligations (Amortized Cost $4,600,681)				4,625,760
SOVEREIGN BONDS—1.2%
Province of Quebec Canada (Canada) 7.50%, 9/15/29		182,000		232,652
United Mexican States, Series A MTN (Mexico) 6.375%, 1/16/13		264,000		283,404
Total Sovereign Bonds (Amortized Cost $511,465)				516,056
Total Investments—98.3% (Amortized Cost $44,398,287)			$	42,803,141
Cash Equivalents—1.0% (a)				414,916
Other assets less liabilities—0.7%				321,364
Net Assets—100.0%			$	43,539,421

MTN - Medium Term Note.

REIT - Real Estate Investment Trust.

* Non-income producing security.

(a) Represents an investment in BNY Hamilton Money Fund, Institutional Shares with annualized 7-day yield of 2.53% at May 31, 2008.

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND (Continued)

COUNTRY BREAKDOWN AS OF MAY 31, 2008

	Market Value		% of Net Assets
United States	$	33,579,601		77.1	%
United Kingdom		2,631,241		6.0
Japan		1,469,707		3.4
Switzerland		1,120,402		2.6
Germany		608,170		1.4
Spain		557,477		1.3
France		421,150		1.0
Supranational		387,545		0.9
Netherlands		351,898		0.8
Canada		286,011		0.6
Mexico		283,404		0.6
Sweden		213,398		0.5
Australia		203,437		0.5
Italy		181,966		0.4
Netherlands Antilles		159,684		0.4
Bermuda		117,357		0.3
Finland		115,330		0.3
Luxembourg		53,160		0.1
Cayman Islands		38,770		0.1
Belgium		23,433		0.0
Total Investments		42,803,141		98.3
Cash Equivalents		414,916		1.0
Other assets less liabilities		321,364		0.7
Net Assets	$	43,539,421		100.0	%

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS

TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND

May 31, 2008

	Number of Shares		Market Value
COMMON STOCKS—88.1%
CONSUMER DISCRETIONARY—9.5%
Aeropostale, Inc.*		2,301	$	80,397
ArvinMeritor, Inc.		2,161		32,350
Brookfield Homes Corp.		2,301		34,745
Coach, Inc.*		3,823		138,775
Comcast Corp., Class A		8,967		201,758
Compagnie Financiere Richemont SA, Class A (Switzerland)		776		48,242
Daimler AG (Germany)		719		54,661
DeVry, Inc.		1,688		96,300
DIRECTV Group (The), Inc.*		8,408		236,266
Home Depot (The), Inc.		1,609		44,022
HONDA MOTOR Co. Ltd. (Japan)		3,504		117,171
J. Crew Group, Inc.*		1,062		39,581
Jo-Ann Stores, Inc.*		2,525		56,838
Johnson Controls, Inc.		774		26,362
Jos. A. Bank Clothiers, Inc.*		1,532		41,670
Lear Corp.*		1,425		36,694
Liberty Global, Inc., Class A*		2,185		78,332
Live Nation, Inc.*		2,011		30,467
Matsushita Electric Industrial Co. Ltd. (Japan)		2,168		49,289
McDonald's Corp.		3,823		226,781
Men's Wearhouse (The), Inc.		769		15,941
New York & Co., Inc.*		6,885		57,559
Omnicom Group, Inc.		750		36,758
Priceline.com, Inc.*		721		96,996
Regis Corp.		769		23,331
Rent-A-Center, Inc.*		769		16,134
Sony Corp. (Japan)		2,336		116,839
Sotheby's		1,481		39,720
Steven Madden Ltd.*		2,301		47,147
Target Corp.		3,061		163,335
Tempur-Pedic International, Inc.		1,536		16,497
Time Warner, Inc.		8,408		133,519
Toyota Motor Corp. (Japan)		5,723		291,123
Universal Technical Institute, Inc.*		2,301		29,729
Viacom, Inc., Class B*		5,231		187,374
Yum! Brands, Inc.		4,791		190,203
				3,132,906
CONSUMER STAPLES—7.3%
Altria Group, Inc.		4,591		102,196
British American Tobacco PLC (United Kingdom)		2,057		76,748
Carrefour SA (France)		496		34,740
Coca-Cola (The) Co.		4,591		262,881
ConAgra Foods, Inc.		6,120		144,310
CVS Caremark Corp.		1,536		65,725
Diageo PLC (United Kingdom)		2,866		55,788
Groupe DANONE (France)		174		15,216
Kraft Foods, Inc., Class A		3,823		124,171
Longs Drug Stores Corp.		768		36,419
Nestle SA (Switzerland)		635		311,498
Pilgrim's Pride Corp.		1,532		39,832
Procter & Gamble (The) Co.		7,361		486,193
Tesco PLC (United Kingdom)		13,334		109,118
Unilever NV (Netherlands)		2,901		94,697

	Number of Shares		Market Value
CONSUMER STAPLES (Continued)
Unilever PLC (United Kingdom)		277	$	9,147
Wal-Mart Stores, Inc.		7,554		436,168
				2,404,847
ENERGY—10.7%
Alon USA Energy, Inc.		1,532		23,455
Atwood Oceanics, Inc.*		23		2,344
BG Group PLC (United Kingdom)		4,095		102,451
BP PLC (United Kingdom)		25,096		301,536
Chevron Corp.		4,591		455,198
ConocoPhillips		3,823		355,921
Dril-Quip, Inc.*		768		44,805
ENI S.p.A (Italy)		1,285		52,280
EOG Resources, Inc.		3,174		408,272
Exxon Mobil Corp.		6,567		582,887
Halliburton Co.		206		10,007
International Coal Group, Inc.*		12,172		122,572
Newpark Resources, Inc.*		8,408		59,276
Occidental Petroleum Corp.		1,534		141,021
Oil States International, Inc.*		768		44,867
Oilsands Quest, Inc.*		9,267		42,350
PetroHawk Energy Corp.*		3,061		89,932
Petroleum Development Corp.*		769		53,138
Royal Dutch Shell PLC, Class A (United Kingdom)		4,556		193,577
Royal Dutch Shell PLC, Class B (United Kingdom)		3,389		140,979
Schlumberger Ltd. (Netherlands Antilles)		1,439		145,526
Total SA (France)		1,202		104,774
W-H Energy Services, Inc.*		769		65,773
				3,542,941
FINANCIALS—17.3%
Allianz SE (Germany)		352		66,568
American Express Co.		9,254		428,923
American International Group, Inc.		2,483		89,388
Aspen Insurance Holdings Ltd. (Bermuda)		1,390		35,528
Assicurazioni Generali S.p.A (Italy)		528		21,933
Aviva PLC (United Kingdom)		3,774		47,024
AXA (France)		1,295		45,704
Banco Bilbao Vizcaya Argentaria SA (Spain)		649		14,453
Banco Santander SA (Spain)		15,402		320,496
Bank of America Corp.		5,353		182,056
Barclays PLC (United Kingdom)		9,091		67,371
BNP Paribas (France)		559		57,631
Calamos Asset Management, Inc., Class A		1,532		30,992
Cascade Bancorp		2,301		20,180
Charles Schwab (The) Corp.		9,992		221,623
Citigroup, Inc.		8,288		181,424
CME Group, Inc.		141		60,672
Cohen & Steers, Inc.		1,532		46,236
Commerce Group (The), Inc.		769		28,276
Commonwealth Bank of Australia (Australia)		41		1,654
Credit Suisse Group (Switzerland)		2,085		105,972
Deerfield Capital Corp. REIT		9,657		8,981
Delphi Financial Group, Inc., Class A		433		12,509
Digital Realty Trust, Inc. REIT		1,532		64,804

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
FINANCIALS (Continued)
Dollar Financial Corp.*		1,532	$	30,533
Fortis (Belgium)		994		24,314
Franklin Resources, Inc.		2,019		204,363
GAMCO Investors, Inc., Class A		769		40,826
GFI Group, Inc.		3,074		36,396
Goldman Sachs Group (The), Inc.		422		74,445
Greenlight Capital Re Ltd., Class A (Cayman Islands)*		1,771		34,906
HBOS PLC (United Kingdom)		5,381		42,536
Highwoods Properties, Inc. REIT		1,532		55,152
HSBC Holdings PLC (United Kingdom)		16,657		280,622
ING Groep NV (Netherlands)		2,364		90,154
Intesa Sanpaolo S.p.A (Italy)		1,446		9,472
JPMorgan Chase & Co.		3,823		164,389
Lincoln National Corp.		3,542		195,377
Lloyds TSB Group PLC (United Kingdom)		6,629		50,305
Mitsubishi UFJ Financial Group, Inc. (Japan)		11,980		122,337
Mizuho Financial Group, Inc. (Japan)		16		83,967
Morgan Stanley		550		24,327
Muenchener Rueckversicherungs-Gesellschaft AG (Germany)		62		11,610
National Australia Bank Ltd. (Australia)		416		12,419
National City Corp.		14,031		81,941
Nationwide Health Properties, Inc. REIT		769		26,246
Nomura Holdings, Inc. (Japan)		4,205		71,341
Nordea Bank AB (Sweden)		2,803		45,511
Northern Trust Corp.		1,532		116,432
NYSE Euronext		2,449		156,540
Odyssey Re Holdings Corp.		769		28,868
optionsXpress Holdings, Inc.		1,532		34,991
PHH Corp.*		1,532		28,848
Platinum Underwriters Holdings Ltd. (Bermuda)		999		35,435
Post Properties, Inc. REIT		769		27,307
Prudential PLC (United Kingdom)		3,565		46,850
Ramco-Gershenson Properties Trust REIT		769		17,187
Realty Income Corp. REIT		1,532		37,534
Royal Bank of Scotland Group PLC (United Kingdom)		20,811		93,974
Simon Property Group, Inc. REIT		1,837		182,524
SLM Corp.*		4,785		108,476
Societe Generale (France)		294		30,520
Sumitomo Mitsui Financial Group, Inc. (Japan)		14		120,286
SVB Financial Group*		768		39,360
Swiss Re (Switzerland)		146		11,312
UBS AG (Switzerland)*		3,984		95,715
UniCredito Italiano S.p.A (Italy)		8,304		57,975
Vornado Realty Trust REIT		1,574		153,827
Wachovia Corp.		2,795		66,521
Waddell & Reed Financial, Inc., Class A		1,532		54,172
Washington Real Estate Investment Trust REIT		768		25,874
Wells Fargo & Co.		2,420		66,719
Westpac Banking Corp. (Australia)		1,446		32,054
Zurich Financial Services AG (Switzerland)		273		79,894
				5,723,082
HEALTH CARE—10.9%
Abbott Laboratories		3,872		218,187
Alexion Pharmaceuticals, Inc.*		656		46,806

	Number of Shares		Market Value
HEALTH CARE (Continued)
AMERIGROUP Corp.*		1,534	$	42,354
AstraZeneca PLC (United Kingdom)		994		43,314
Auxilium Pharmaceuticals, Inc.*		2,157		68,679
Becton, Dickinson & Co.		2,921		246,678
CIGNA Corp.		2,301		93,421
Dendreon Corp.*		5,706		29,671
Genzyme Corp.*		3,672		251,385
GlaxoSmithKline PLC (United Kingdom)		5,287		116,340
Hologic, Inc.*		1,537		36,934
Illumina, Inc.*		769		60,351
Inverness Medical Innovations, Inc.*		35		1,280
Johnson & Johnson		6,465		431,473
Magellan Health Services, Inc.*		768		30,912
McKesson Corp.		2,301		132,653
Merck & Co., Inc.		5,072		197,605
Novartis AG (Switzerland)		3,771		197,619
Perrigo Co.		1,532		56,087
Pfizer, Inc.		19,924		385,728
Psychiatric Solutions, Inc.*		768		28,009
Roche Holding AG (Switzerland)		1,139		195,911
Sanofi-Aventis SA (France)		285		21,220
Sirona Dental Systems, Inc.*		1,534		45,498
STERIS Corp.		1,532		46,343
Takeda Pharmaceutical Co. Ltd. (Japan)		679		39,300
Thermo Fisher Scientific, Inc.*		5,081		299,881
UnitedHealth Group, Inc.		3,823		130,785
WellPoint, Inc.*		1,534		85,628
				3,580,052
INDUSTRIALS—9.1%
ABB Ltd. (Switzerland)		4,335		140,496
ABM Industries, Inc.		1,536		33,531
Aecom Technology Corp.*		2,758		88,835
Allegiant Travel Co.*		1,525		31,873
Belden, Inc.		769		32,213
Boeing Co.		1,532		126,804
Caterpillar, Inc.		2,301		190,155
CDI Corp.		1,532		43,662
Compagnie de Saint-Gobain (France)		322		25,941
Danaher Corp.		769		60,120
Emerson Electric Co.		1,532		89,132
FedEx Corp.		769		70,525
Fuel Tech, Inc.*		1,921		48,870
General Electric Co.		9,943		305,449
Granite Construction, Inc.		769		28,122
Illinois Tool Works, Inc.		1,534		82,376
Ingersoll-Rand Co. Ltd., Class A (Bermuda)		860		37,874
JetBlue Airways Corp.*		5,353		21,251
Koninklijke (Royal) Philips Electronics NV (Netherlands)		1,502		57,608
Manpower, Inc.		1,534		96,642
Mitsubishi Corp. (Japan)		2,102		72,479
Northrop Grumman Corp.		2,404		181,406
PACCAR, Inc.		730		38,975
Raven Industries, Inc.		1,534		57,909
Seaboard Corp.		21		37,695
Siemens AG (Germany)		591		66,973
Simpson Manufacturing Co., Inc.		1,532		40,414

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
INDUSTRIALS (Continued)
Trane, Inc.		3,267	$	151,654
Union Pacific Corp.		1,538		126,593
United Parcel Service, Inc., Class B		2,301		163,417
United Stationers, Inc.*		769		32,559
United Technologies Corp.		5,988		425,387
				3,006,940
INFORMATION TECHNOLOGY—10.4%
Accenture Ltd., Class A (Bermuda)		1,771		72,292
Agilysys, Inc.		2,301		24,022
Amkor Technology, Inc.*		4,591		48,940
CANON, Inc. (Japan)		2,603		140,303
Cisco Systems, Inc.*		6,120		163,526
eBay, Inc.*		3,823		114,728
FLIR Systems, Inc.*		1,536		60,549
Foundry Networks, Inc.*		2,301		31,294
Google, Inc., Class A*		402		235,491
Hewlett-Packard Co.		2,301		108,285
Intel Corp.		5,353		124,083
International Business Machines Corp.		1,192		154,281
Itron, Inc.*		769		75,039
Ixia*		5,353		43,306
Jack Henry & Associates, Inc.		1,532		36,462
Juniper Networks, Inc.*		3,061		84,239
Lawson Software, Inc.*		3,676		32,055
MICROS Systems, Inc.*		1,536		50,642
Microsoft Corp.		11,749		332,731
MKS Instruments, Inc.*		769		18,118
Motorola, Inc.		30,304		282,735
Nintendo Co. Ltd. (Japan)		154		84,611
Nokia Oyj (Finland)		4,311		124,142
Nuance Communications, Inc.*		4,072		80,300
ON Semiconductor Corp.*		4,591		45,405
Orbcomm, Inc.*		5,611		34,732
Perficient, Inc.*		769		8,159
Perot Systems Corp., Class A*		2,301		38,013
SAIC, Inc.*		1,055		21,026
SAP AG (Germany)		362		19,982
SAVVIS, Inc.*		1,139		18,999
Sonus Networks, Inc.*		7,157		30,704
Spansion, Inc., Class A*		1,432		4,511
Sun Microsystems, Inc.*		12,729		164,840
Sybase, Inc.*		1,532		49,055
Symantec Corp.*		5,353		116,321
Telefonaktiebolaget LM Ericsson (Sweden)		49,055		133,320
THQ, Inc.*		1,532		32,861
ValueClick, Inc.*		2,301		46,273
Veeco Instruments, Inc.*		2,301		44,248
Xerox Corp.		6,120		83,110
				3,413,733
MATERIALS—5.7%
A. Schulman, Inc.		1,536		34,698
Alcoa, Inc.		2,301		93,398
Anglo American PLC (United Kingdom)		2,106		142,294
Aptargroup, Inc.		769		34,390
ArcelorMittal (Luxembourg)		284		28,167
BASF AG (Germany)		301		45,079

	Number of Shares		Market Value
MATERIALS (Continued)
Bayer AG (Germany)		475	$	42,076
BHP Billiton Ltd. (Australia)		1,997		82,826
BHP Billiton PLC (United Kingdom)		3,918		148,196
CF Industries Holdings, Inc.		1,002		137,174
Dow Chemical (The) Co.		2,301		92,960
E.I. du Pont de Nemours & Co.		3,061		146,652
Glatfelter		1,536		23,931
Greif, Inc., Class A		769		51,554
Headwaters, Inc.*		2,301		25,012
Hercules, Inc.		691		14,255
JFE Holdings, Inc. (Japan)		701		39,577
Newmont Mining Corp.		297		14,116
NIPPON STEEL Corp. (Japan)		14,016		87,496
Rio Tinto PLC (United Kingdom)		1,529		182,959
Rockwood Holdings, Inc.*		769		28,238
Southern Copper Corp.		1,312		144,622
Terra Industries, Inc.		1,975		86,169
Weyerhaeuser Co.		1,532		95,490
Xstrata PLC (United Kingdom)		712		56,127
				1,877,456
TELECOMMUNICATION SERVICES—3.5%
AT&T, Inc.		8,408		335,479
BT Group PLC (United Kingdom)		18,183		79,772
Koninklijke (Royal) KPN NV (Netherlands)		451		8,200
Qwest Communications International, Inc.		41,964		203,525
Telefonica SA (Spain)		4,443		127,391
Time Warner Telecom, Inc., Class A*		2,078		38,859
Verizon Communications, Inc.		3,823		147,071
Vodafone Group PLC (United Kingdom)		69,962		224,325
				1,164,622
UTILITIES—3.7%
American Electric Power Co., Inc.		2,301		97,401
American States Water Co.		768		25,920
Constellation Energy Group, Inc.		1,879		162,026
E.ON AG (Germany)		376		79,912
Endesa SA (Spain)		2,598		133,316
Enel S.p.A (Italy)		4,157		46,675
Exelon Corp.		4,640		408,319
MGE Energy, Inc.		769		26,415
National Grid PLC (United Kingdom)		563		8,300
PNM Resources, Inc.		1,536		22,810
Suez SA (France)		1,188		88,434
Tokyo Electric Power (The) Co., Inc. (Japan)		3,737		90,978
Westar Energy, Inc.		1,392		33,408
				1,223,914
Total Common Stocks (Cost $30,844,128)				29,070,493
RIGHTS—0.0%
FINANCIALS—0.0%
UBS AG Rights, expiring 6/12/08 (Cost $0)		3,984		5,301

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Principal Amount		Market Value
CORPORATE BONDS—8.1%
CONSUMER DISCRETIONARY—1.2%
CBS Corp. 7.875%, 7/30/30	$	70,000	$	72,611
Comcast Cable Communications Holdings, Inc. 8.375%, 3/15/13		7,000		7,727
Comcast Corp. 6.45%, 3/15/37		70,000		67,152
Home Depot (The), Inc. 5.40%, 3/01/16		21,000		19,797
News America, Inc. 6.20%, 12/15/34		78,000		72,962
Time Warner Cable, Inc. 6.55%, 5/01/37		72,000		67,728
Time Warner, Inc. 7.70%, 5/01/32		69,000		72,398
Viacom, Inc. 6.25%, 4/30/16		13,000		12,902
				393,277
CONSUMER STAPLES—0.5%
Coca-Cola Enterprises, Inc. 8.50%, 2/01/22		21,000		25,458
Kroger (The) Co. 5.50%, 2/01/13		14,000		14,099
Procter & Gamble (The) Co. 5.55%, 3/05/37		111,000		106,605
Wal-Mart Stores, Inc. 4.55%, 5/01/13		8,000		8,080
				154,242
ENERGY—0.5%
Anadarko Petroleum Corp. 5.95%, 9/15/16		13,000		13,121
Apache Corp. 5.25%, 4/15/13		21,000		21,318
Canadian Natural Resources Ltd. (Canada) 5.70%, 5/15/17		12,000		11,857
ConocoPhillips 5.90%, 10/15/32		85,000		83,751
Enterprise Products Operating LP, Series B 5.60%, 10/15/14		12,000		11,666
Spectra Energy Capital LLC 6.25%, 2/15/13		8,000		8,139
				149,852
FINANCIALS—3.2%
Allstate (The) Corp. 5.55%, 5/09/35		90,000		77,427
American Express Co. 6.80%, 9/01/66 (a)		96,000		91,052
American General Finance Corp., Series H MTN 5.375%, 10/01/12		118,000		114,256
Bank of America Corp. 4.875%, 1/15/13		8,000		7,901
Boston Properties LP 6.25%, 1/15/13		6,000		6,125
Capital One Financial Corp. 6.15%, 9/01/16		13,000		11,598

	Principal Amount		Market Value
FINANCIALS (Continued)
Capmark Financial Group, Inc. 6.30%, 5/10/17	$	12,000	$	8,819
Credit Suisse (USA), Inc. 7.125%, 7/15/32		83,000		88,896
General Electric Capital Corp., Series A MTN 6.75%, 3/15/32		77,000		78,134
Goldman Sachs Group, LP 5.00%, 10/01/14		12,000		11,499
HSBC Finance Corp. 6.375%, 11/27/12		48,000		49,448
Inter-American Development Bank (Supranational) 4.375%, 9/20/12		49,000		49,993
iStar Financial, Inc., Series 1 5.875%, 3/15/16		8,000		6,900
JPMorgan Chase & Co. 5.75%, 1/02/13		26,000		26,659
Landwirtschaftliche Rentenbank, Series G MTN (Germany) 5.00%, 11/08/16		35,000		36,285
Lincoln National Corp. 7.00%, 5/17/66 (a)		153,000		141,727
Marsh & McLennan Cos., Inc. 5.75%, 9/15/15		14,000		13,763
Morgan Stanley 5.30%, 3/01/13		11,000		10,726
Royal Bank of Scotland Group PLC (United Kingdom) 5.00%, 10/01/14		8,000		7,603
SLM Corp., Series A MTN 5.375%, 5/15/14		8,000		6,797
Travelers (The) Cos., Inc. 6.25%, 3/15/37		118,000		101,640
Unilever Capital Corp. 5.90%, 11/15/32		83,000		81,190
Wells Fargo & Co. 5.00%, 11/15/14		12,000		11,682
				1,040,120
HEALTH CARE—0.5%
Abbott Laboratories 5.875%, 5/15/16		12,000		12,425
Bristol-Myers Squibb Co. 5.875%, 11/15/36		84,000		78,305
Eli Lilly & Co. 5.55%, 3/15/37		77,000		71,253
WellPoint, Inc. 5.25%, 1/15/16		12,000		11,215
				173,198
INDUSTRIALS—0.4%
Burlington Northern Santa Fe Corp. 6.15%, 5/01/37		76,000		72,121
CSX Corp. 6.00%, 10/01/36		78,000		67,118
				139,239

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Principal Amount		Market Value
MATERIALS—0.5%
BHP Billiton Finance USA Ltd. (Australia) 4.80%, 4/15/13	$	28,000	$	27,496
CRH America, Inc. 6.00%, 9/30/16		10,000		9,331
Vale Overseas Ltd. (Cayman Islands) 6.875%, 11/21/36		71,000		70,722
Weyerhaeuser Co. 7.375%, 3/15/32		72,000		71,288
				178,837
TELECOMMUNICATION SERVICES—0.5%
BellSouth Corp. 6.00%, 11/15/34		89,000		82,651
Embarq Corp. 7.082%, 6/01/16		9,000		8,765
Verizon Global Funding Corp. 7.75%, 12/01/30		70,000		77,848
Vodafone Group PLC (United Kingdom) 5.625%, 2/27/17		8,000		7,898
				177,162
UTILITIES—0.8%
Constellation Energy Group 4.55%, 6/15/15		10,000		9,006
Dominion Resources, Inc., Series C 5.15%, 7/15/15		12,000		11,637
Exelon Generation Co. LLC 5.35%, 1/15/14		21,000		20,238
FirstEnergy Corp., Series C 7.375%, 11/15/31		68,000		73,369
Midamerican Energy Holdings Co. 6.125%, 4/01/36		76,000		73,368
Pacific Gas & Electric Co. 6.05%, 3/01/34		77,000		74,157
				261,775
Total Corporate Bonds (Amortized Cost $2,762,672)				2,667,702
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS—2.5%
FEDERAL HOME LOAN MORTGAGE CORP.—0.4%
6.25%, 7/15/32		111,000		126,491
UNITED STATES TREASURY BONDS/NOTES—2.1%
3.50%, 2/15/10		118,000		119,899
4.75%, 5/15/14		210,300		224,167
8.125%, 8/15/19		98,200		130,690
7.625%, 2/15/25		87,600		117,596
6.25%, 5/15/30		95,800		115,866
				708,218
Total United States Government & Agencies Obligations (Amortized Cost $831,423)				834,709

	Principal Amount		Market Value
SOVEREIGN BONDS—0.1%
Province of Quebec Canada (Canada) 7.50%, 9/15/29	$	12,000	$	15,340
United Mexican States (Mexico) 5.625%, 1/15/17		6,000		6,180
United Mexican States, Series A MTN (Mexico) 6.375%, 1/16/13		8,000		8,588
Total Sovereign Bonds (Amortized Cost $30,204)				30,108
Total Investments—98.8% (Amortized Cost $34,468,427)			$	32,608,313
Cash Equivalents—0.5% (b)				176,645
Other assets less liabilities—0.7%				236,435
Net Assets—100.0%			$	33,021,393

MTN - Medium Term Note.

REIT - Real Estate Investment Trust.

* Non-income producing security.

(a) Variable rate coupon. Stated interest rate was in effect at May 31, 2008.

(b) Represents an investment in BNY Hamilton Money Fund, Institutional Shares with annualized 7-day yield of 2.53% at May 31, 2008.

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND (Continued)

COUNTRY BREAKDOWN AS OF MAY 31, 2008

	Market Value		% of Net Assets
United States	$	24,335,982		73.7	%
United Kingdom		2,635,154		8.0
Japan		1,527,097		4.6
Switzerland		1,191,960		3.6
Spain		595,656		1.8
France		424,180		1.3
Germany		423,146		1.3
Netherlands		250,659		0.8
Italy		188,335		0.6
Bermuda		181,129		0.5
Sweden		178,831		0.5
Australia		156,449		0.5
Netherlands Antilles		145,526		0.4
Finland		124,142		0.4
Cayman Islands		105,628		0.3
Supranational		49,993		0.2
Luxembourg		28,167		0.1
Canada		27,197		0.1
Belgium		24,314		0.1
Mexico		14,768		0.0
Total Investments		32,608,313		98.8
Cash Equivalents		176,645		0.5
Other assets less liabilities		236,435		0.7
Net Assets	$	33,021,393		100.0	%

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS

TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND

May 31, 2008

	Number of Shares		Market Value
COMMON STOCKS—96.0%
CONSUMER DISCRETIONARY—10.0%
Aeropostale, Inc.*		2,529	$	88,363
ArvinMeritor, Inc.		3,373		50,494
Belo Corp., Class A		561		5,363
Brookfield Homes Corp.		2,535		38,279
Cabela's, Inc., Class A*		1,689		23,393
Coach, Inc.*		4,211		152,859
Columbia Sportswear Co.		346		15,162
Comcast Corp., Class A		10,952		246,420
Compagnie Financiere Richemont SA, Class A (Switzerland)		951		59,122
Daimler AG (Germany)		822		62,492
DeVry, Inc.		854		48,721
DIRECTV Group (The), Inc.*		9,264		260,318
Fleetwood Enterprises, Inc.*		5,900		24,544
Home Depot (The), Inc.		3,373		92,285
HONDA MOTOR Co. Ltd. (Japan)		2,403		80,354
J. Crew Group, Inc.*		1,287		47,966
Jo-Ann Stores, Inc.*		2,498		56,230
Johnson Controls, Inc.		1,079		36,751
Jos. A. Bank Clothiers, Inc.*		1,689		45,941
Lear Corp.*		1,724		44,393
Liberty Global, Inc., Class A*		2,640		94,644
Live Nation, Inc.*		2,448		37,087
Matsushita Electric Industrial Co. Ltd. (Japan)		2,289		52,040
McDonald's Corp.		4,211		249,797
Men's Wearhouse (The), Inc.		854		17,703
New York & Co., Inc.*		8,424		70,425
Omnicom Group, Inc.		1,689		82,778
Priceline.com, Inc.*		845		113,678
Regis Corp.		1,689		51,244
Rent-A-Center, Inc.*		911		19,113
Sony Corp. (Japan)		3,090		154,551
Sotheby's		1,689		45,299
Speedway Motorsports, Inc.		855		21,794
Steven Madden Ltd.*		2,529		51,819
Target Corp.		3,373		179,983
Tempur-Pedic International, Inc.		1,689		18,140
Time Warner, Inc.		10,113		160,594
Toyota Motor Corp. (Japan)		7,095		360,917
Universal Technical Institute, Inc.*		2,529		32,675
Viacom, Inc., Class B*		6,382		228,603
Vivendi (France)		381		15,995
Yum! Brands, Inc.		5,932		235,500
				3,773,829
CONSUMER STAPLES—8.0%
Altria Group, Inc.		5,900		131,334
British American Tobacco PLC (United Kingdom)		2,302		85,889
Carrefour SA (France)		591		41,394
Coca-Cola (The) Co.		5,900		337,834
ConAgra Foods, Inc.		7,580		178,736
CVS Caremark Corp.		1,689		72,272
Diageo PLC (United Kingdom)		3,472		67,584
Flowers Foods, Inc.		205		5,767
Groupe DANONE (France)		44		3,848
Kraft Foods, Inc., Class A		5,053		164,121

	Number of Shares		Market Value
CONSUMER STAPLES (Continued)
Longs Drug Stores Corp.		855	$	40,544
Nestle SA (Switzerland)		786		385,571
Pilgrim's Pride Corp.		1,689		43,914
Procter & Gamble (The) Co.		9,075		599,404
Reckitt Benckiser Group PLC (United Kingdom)		790		46,430
Ruddick Corp.		694		24,658
Tesco PLC (United Kingdom)		16,694		136,615
Unilever NV (Netherlands)		2,872		93,750
Unilever PLC (United Kingdom)		911		30,083
Wal-Mart Stores, Inc.		9,304		537,213
				3,026,961
ENERGY—11.9%
Alon USA Energy, Inc.		1,689		25,859
Atwood Oceanics, Inc.*		29		2,955
BG Group PLC (United Kingdom)		4,965		124,218
BP PLC (United Kingdom)		30,431		365,637
Chevron Corp.		5,073		502,988
ConocoPhillips		4,893		455,538
Dril-Quip, Inc.*		855		49,881
ENI S.p.A (Italy)		1,941		78,970
EOG Resources, Inc.		3,923		504,615
Exxon Mobil Corp.		8,159		724,192
Halliburton Co.		256		12,436
International Coal Group, Inc.*		15,122		152,279
Newpark Resources, Inc.*		10,113		71,297
Occidental Petroleum Corp.		1,689		155,270
Oil States International, Inc.*		1,689		98,671
Oilsands Quest, Inc.*		11,240		51,367
PetroHawk Energy Corp.*		3,373		99,099
Petroleum Development Corp.*		1,644		113,600
Repsol YPF SA (Spain)		1,103		45,596
Royal Dutch Shell PLC, Class A (United Kingdom)		5,522		234,620
Royal Dutch Shell PLC, Class B (United Kingdom)		4,107		170,847
Schlumberger Ltd. (Netherlands Antilles)		1,749		176,876
Ship Finance International Ltd. (Bermuda)		1,649		50,608
Total SA (France)		1,465		127,699
W-H Energy Services, Inc.*		854		73,043
				4,468,161
FINANCIALS—19.0%
Alexandria Real Estate Equities, Inc. REIT		121		12,620
Allianz SE (Germany)		426		80,562
American Express Co.		11,475		531,865
American International Group, Inc.		3,056		110,016
Apollo Investment Corp.		653		11,787
Aspen Insurance Holdings Ltd. (Bermuda)		1,681		42,966
Assicurazioni Generali S.p.A (Italy)		1,311		54,459
Australia & New Zealand Banking Group Ltd. (Australia)		1,509		31,192
Aviva PLC (United Kingdom)		1,231		15,338
AXA (France)		1,457		51,421
Banco Bilbao Vizcaya Argentaria SA (Spain)		1,200		26,723
Banco Santander SA (Spain)		19,042		396,240

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
FINANCIALS (Continued)
Bank of America Corp.		5,900	$	200,659
Barclays PLC (United Kingdom)		11,025		81,703
BNP Paribas (France)		680		70,105
Calamos Asset Management, Inc., Class A		854		17,276
Cascade Bancorp		2,529		22,179
Charles Schwab (The) Corp.		12,344		273,789
Citigroup, Inc.		7,580		165,926
CME Group, Inc.		173		74,442
Commerce Group (The), Inc.		1,689		62,105
Commonwealth Bank of Australia (Australia)		41		1,654
Credit Suisse Group (Switzerland)		2,529		128,538
Deerfield Capital Corp. REIT		8,542		7,944
Delphi Financial Group, Inc., Class A		649		18,750
Deutsche Bank AG (Germany)		17		1,816
Digital Realty Trust, Inc. REIT		1,689		71,445
Dollar Financial Corp.*		1,689		33,662
FelCor Lodging Trust, Inc. REIT		76		1,129
Fortis (Belgium)		3,085		75,461
Franklin Resources, Inc.		2,535		256,593
GFI Group, Inc.		3,419		40,481
Goldman Sachs Group (The), Inc.		814		143,598
Greenlight Capital Re Ltd., Class A (Cayman Islands)*		2,142		42,219
HBOS PLC (United Kingdom)		6,525		51,579
Highwoods Properties, Inc. REIT		1,689		60,804
HSBC Holdings PLC (United Kingdom)		17,548		295,634
ING Groep NV (Netherlands)		3,165		120,702
Intesa Sanpaolo S.p.A (Italy)		1,506		9,865
JPMorgan Chase & Co.		5,053		217,279
Lincoln National Corp.		4,213		232,389
Lloyds TSB Group PLC (United Kingdom)		8,029		60,929
Mitsubishi UFJ Financial Group, Inc. (Japan)		14,875		151,898
Mizuho Financial Group, Inc. (Japan)		26		136,447
Montpelier Re Holdings Ltd. (Bermuda)		933		15,646
Morgan Stanley		1,529		67,628
Muenchener Rueckversicherungs-Gesellschaft AG (Germany)		89		16,666
National Australia Bank Ltd. (Australia)		1,385		41,347
National City Corp.		14,204		82,951
Nationwide Health Properties, Inc. REIT		1,689		57,646
Nomura Holdings, Inc. (Japan)		5,721		97,062
Nordea Bank AB (Sweden)		4,806		78,033
Northern Trust Corp.		2,529		192,204
NYSE Euronext		3,039		194,253
Odyssey Re Holdings Corp.		854		32,059
optionsXpress Holdings, Inc.		1,689		38,577
PHH Corp.*		1,689		31,804
Platinum Underwriters Holdings Ltd. (Bermuda)		1,215		43,097
Post Properties, Inc. REIT		854		30,326
Potlatch Corp. REIT		193		9,330
Prudential PLC (United Kingdom)		4,320		56,772
Ramco-Gershenson Properties Trust REIT		1,689		37,749
Realty Income Corp. REIT		1,689		41,381
Royal Bank of Scotland Group PLC (United Kingdom)		21,642		97,727
Simon Property Group, Inc. REIT		2,278		226,342
SLM Corp.*		5,945		134,773

	Number of Shares		Market Value
FINANCIALS (Continued)
Societe Generale (France)		347	$	36,022
Sumitomo Mitsui Financial Group, Inc. (Japan)		16		137,470
SVB Financial Group*		854		43,768
Swiss Re (Switzerland)		344		26,654
UBS AG (Switzerland)*		4,824		115,896
UniCredito Italiano S.p.A (Italy)		12,408		86,627
Vornado Realty Trust REIT		1,850		180,801
Wachovia Corp.		2,529		60,190
Waddell & Reed Financial, Inc., Class A		1,689		59,723
Washington Real Estate Investment Trust REIT		694		23,381
Wells Fargo & Co.		3,770		103,939
Westpac Banking Corp. (Australia)		1,749		38,771
Zurich Financial Services AG (Switzerland)		331		96,868
				7,127,672
HEALTH CARE—11.7%
Abbott Laboratories		4,893		275,721
Alexion Pharmaceuticals, Inc.*		798		56,937
AMERIGROUP Corp.*		1,689		46,633
AstraZeneca PLC (United Kingdom)		1,547		67,411
Auxilium Pharmaceuticals, Inc.*		2,615		83,262
Becton, Dickinson & Co.		3,405		287,552
Bio-Rad Laboratories, Inc., Class A*		69		6,174
CIGNA Corp.		3,373		136,944
Dendreon Corp.*		6,930		36,036
Genzyme Corp.*		4,473		306,222
GlaxoSmithKline PLC (United Kingdom)		6,023		132,536
Hologic, Inc.*		1,707		41,019
Illumina, Inc.*		1,055		82,796
Johnson & Johnson		7,580		505,889
Kindred Healthcare, Inc.*		304		8,387
Magellan Health Services, Inc.*		855		34,414
McKesson Corp.		2,529		145,797
Merck & Co., Inc.		6,259		243,851
Novartis AG (Switzerland)		4,821		252,644
Perrigo Co.		1,689		61,834
Pfizer, Inc.		24,861		481,309
Psychiatric Solutions, Inc.*		854		31,145
Roche Holding AG (Switzerland)		1,385		238,224
Sanofi-Aventis SA (France)		526		39,163
Sirona Dental Systems, Inc.*		1,689		50,096
STERIS Corp.		1,689		51,092
Sunrise Senior Living, Inc.*		441		11,678
Takeda Pharmaceutical Co. Ltd. (Japan)		1,259		72,870
Thermo Fisher Scientific, Inc.*		6,250		368,875
UnitedHealth Group, Inc.		4,211		144,058
WellPoint, Inc.*		1,689		94,280
				4,394,849
INDUSTRIALS—10.0%
ABB Ltd. (Switzerland)		4,720		152,974
ABM Industries, Inc.		620		13,535
Acuity Brands, Inc.		319		16,987
Aecom Technology Corp.*		3,426		110,351
Allegiant Travel Co.*		1,854		38,749
Belden, Inc.		1,689		70,752
Boeing Co.		1,689		139,799
Brady Corp., Class A		854		33,058

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
INDUSTRIALS (Continued)
Caterpillar, Inc.		2,567	$	212,136
CDI Corp.		1,689		48,137
Compagnie de Saint-Gobain (France)		397		31,983
Curtiss-Wright Corp.		252		12,981
Danaher Corp.		854		66,766
Emerson Electric Co.		2,529		147,137
FedEx Corp.		903		82,814
FreightCar America, Inc.		258		11,249
Fuel Tech, Inc.*		2,908		73,980
General Electric Co.		12,633		388,085
Granite Construction, Inc.		854		31,231
IKON Office Solutions, Inc.		1,689		20,420
Illinois Tool Works, Inc.		2,529		135,807
Ingersoll-Rand Co. Ltd., Class A (Bermuda)		1,047		46,110
JetBlue Airways Corp.*		6,501		25,809
Koninklijke (Royal) Philips Electronics NV (Netherlands)		1,497		57,416
Manpower, Inc.		1,689		106,407
Mitsubishi Corp. (Japan)		2,403		82,858
MPS Group, Inc.*		3,373		38,722
Northrop Grumman Corp.		2,529		190,838
PACCAR, Inc.		957		51,094
Raven Industries, Inc.		1,689		63,760
Regal-Beloit Corp.		358		16,647
Seaboard Corp.		33		59,235
Siemens AG (Germany)		696		78,872
Simpson Manufacturing Co., Inc.		1,689		44,556
Trane, Inc.		3,594		166,833
Union Pacific Corp.		1,602		131,861
United Parcel Service, Inc., Class B		2,529		179,610
United Stationers, Inc.*		855		36,201
United Technologies Corp.		7,403		525,908
Waste Connections, Inc.*		887		29,120
Watson Wyatt Worldwide, Inc., Class A		64		3,748
				3,774,536
INFORMATION TECHNOLOGY—11.2%
Accenture Ltd., Class A (Bermuda)		2,142		87,436
Agilysys, Inc.		3,373		35,214
Amkor Technology, Inc.*		5,053		53,865
Anixter International, Inc.*		854		55,519
Ansoft Corp.*		79		2,882
Benchmark Electronics, Inc.*		1,689		30,014
CANON, Inc. (Japan)		3,204		172,697
Cisco Systems, Inc.*		6,742		180,146
eBay, Inc.*		5,061		151,881
Entegris, Inc.*		4,211		32,383
FLIR Systems, Inc.*		1,707		67,290
Foundry Networks, Inc.*		3,373		45,873
Google, Inc., Class A*		497		291,143
Hewlett-Packard Co.		3,373		158,733
Intel Corp.		6,742		156,280
International Business Machines Corp.		1,481		191,686
Itron, Inc.*		854		83,333
Ixia*		5,900		47,731
Jack Henry & Associates, Inc.		1,689		40,198
Juniper Networks, Inc.*		3,373		92,825

	Number of Shares		Market Value
INFORMATION TECHNOLOGY (Continued)
Lawson Software, Inc.*		4,450	$	38,804
MICROS Systems, Inc.*		1,706		56,247
Microsoft Corp.		13,477		381,668
MKS Instruments, Inc.*		854		20,120
Motorola, Inc.		37,577		350,593
Nintendo Co. Ltd. (Japan)		197		108,237
Nokia Oyj (Finland)		4,360		125,553
Nuance Communications, Inc.*		3,068		60,501
ON Semiconductor Corp.*		5,053		49,974
Orbcomm, Inc.*		6,808		42,142
Perficient, Inc.*		1,689		17,920
Perot Systems Corp., Class A*		2,529		41,779
Photronics, Inc.*		1,330		11,943
Quest Software, Inc.*		414		7,042
SAIC, Inc.*		924		18,415
SAP AG (Germany)		818		45,153
SAVVIS, Inc.*		1,385		23,102
Sonus Networks, Inc.*		8,891		38,142
Sun Microsystems, Inc.*		15,541		201,257
Sybase, Inc.*		1,689		54,082
Symantec Corp.*		6,744		146,547
Telefonaktiebolaget LM Ericsson (Sweden)		57,214		155,494
THQ, Inc.*		1,689		36,229
TIBCO Software, Inc.*		996		7,689
ValueClick, Inc.*		2,529		50,858
Veeco Instruments, Inc.*		2,529		48,633
Xerox Corp.		6,742		91,556
				4,206,809
MATERIALS—6.1%
A. Schulman, Inc.		2,529		57,130
Alcoa, Inc.		3,373		136,910
Anglo American PLC (United Kingdom)		2,880		194,591
Aptargroup, Inc.		1,689		75,532
ArcelorMittal (Luxembourg)		744		73,790
BASF AG (Germany)		283		42,383
Bayer AG (Germany)		574		50,846
BHP Billiton Ltd. (Australia)		2,416		100,204
BHP Billiton PLC (United Kingdom)		3,710		140,329
CF Industries Holdings, Inc.		1,017		139,227
Dow Chemical (The) Co.		3,373		136,269
E.I. du Pont de Nemours & Co.		3,373		161,600
Glatfelter		1,242		19,350
Greif, Inc., Class A		855		57,319
Headwaters, Inc.*		3,373		36,665
Hercules, Inc.		316		6,519
JFE Holdings, Inc. (Japan)		801		45,223
Newmont Mining Corp.		457		21,721
NIPPON STEEL Corp. (Japan)		16,020		100,006
Rio Tinto PLC (United Kingdom)		1,697		203,061
Rockwood Holdings, Inc.*		1,689		62,020
Southern Copper Corp.		1,627		179,345
Terra Industries, Inc.		2,014		87,871
Weyerhaeuser Co.		1,689		105,275
Worthington Industries, Inc.		451		8,993
Xstrata PLC (United Kingdom)		871		68,661
				2,310,840

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
TELECOMMUNICATION SERVICES—4.0%
Alaska Communications Systems Group, Inc.		1,765	$	22,839
AT&T, Inc.		10,113		403,509
BT Group PLC (United Kingdom)		22,287		97,777
Deutsche Telekom AG (Germany)		163		2,726
Koninklijke (Royal) KPN NV (Netherlands)		1,269		23,073
Qwest Communications International, Inc.		46,607		226,044
Telefonica SA (Spain)		5,503		157,783
Time Warner Telecom, Inc., Class A*		2,513		46,993
Verizon Communications, Inc.		5,053		194,389
Vodafone Group PLC (United Kingdom)		97,208		311,686
				1,486,819
UTILITIES—4.1%
American Electric Power Co., Inc.		3,373		142,779
American States Water Co.		855		28,856
Constellation Energy Group, Inc.		2,368		204,193
E.ON AG (Germany)		446		94,789
Endesa SA (Spain)		2,352		120,692
Enel S.p.A (Italy)		4,442		49,875
Exelon Corp.		5,900		519,201
MGE Energy, Inc.		1,689		58,017
National Grid PLC (United Kingdom)		2,262		33,347
PNM Resources, Inc.		2,529		37,556
Suez SA (France)		1,046		77,863
Tokyo Electric Power (The) Co., Inc. (Japan)		4,920		119,778
Westar Energy, Inc.		1,689		40,536
				1,527,482
Total Common Stocks (Cost $38,414,328)				36,097,958
RIGHTS—0.0%
FINANCIALS—0.0%
UBS AG Rights, expiring 6/12/08 (Amortized Cost $0)		4,216		5,609
	Principal Amount		Market Value
CORPORATE BONDS—2.5%
CONSUMER DISCRESIONARY—0.4%
CBS Corp. 7.875%, 7/30/30	$	24,000		24,895
Comcast Cable Communications Holdings, Inc. 8.375%, 3/15/13		1,000		1,104
Comcast Corp. 6.45%, 3/15/37		39,000		37,414
Home Depot (The), Inc. 5.40%, 3/01/16		3,000		2,828
News America, Inc. 6.20%, 12/15/34		29,000		27,127
Time Warner Cable, Inc. 6.55%, 5/01/37		26,000		24,457
Time Warner Cable, Inc. 144A 6.55%, 5/01/37		10,000		9,407
Time Warner, Inc. 7.70%, 5/01/32		24,000		25,182
Viacom, Inc. 6.25%, 4/30/16		5,000		4,962
				157,376

	Principal Amount		Market Value
CONSUMER STAPLES—0.2%
CVS Caremark Corp. 6.302%, 6/01/37	$	16,000	$	13,932
Kroger (The) Co. 5.50%, 2/01/13		7,000		7,049
Pepsi Bottling Group (The), Inc., Series B 7.00%, 3/01/29		4,000		4,458
Procter & Gamble (The) Co. 5.55%, 3/05/37		41,000		39,377
Wal-Mart Stores, Inc. 4.55%, 5/01/13		2,000		2,020
				66,836
ENERGY—0.1%
Anadarko Petroleum Corp. 5.95%, 9/15/16		2,000		2,019
Canadian Natural Resources Ltd. (Canada) 5.70%, 5/15/17		2,000		1,976
ConocoPhillips 5.90%, 10/15/32		25,000		24,632
Enterprise Products Operating LP, Series B 5.60%, 10/15/14		2,000		1,944
Spectra Energy Capital LLC 6.25%, 2/15/13		5,000		5,087
				35,658
FINANCIALS—0.8%
Allstate (The) Corp. 5.55%, 5/09/35		31,000		26,669
American Express Co. 6.80%, 9/01/66 (a)		64,000		60,700
American General Finance Corp., Series H MTN 5.375%, 10/01/12		8,000		7,746
Bank of America Corp. 4.875%, 1/15/13		5,000		4,938
Boston Properties LP 6.25%, 1/15/13		1,000		1,021
Capital One Financial Corp. 6.15%, 9/01/16		7,000		6,245
Capmark Financial Group, Inc. 6.30%, 5/10/17		10,000		7,349
Credit Suisse (USA), Inc. 7.125%, 7/15/32		25,000		26,776
General Electric Capital Corp., Series A MTN 6.75%, 3/15/32		16,000		16,236
Goldman Sachs Group, LP 5.00%, 10/01/14		2,000		1,917
HSBC Finance Corp. 6.375%, 11/27/12		8,000		8,241
Inter-American Development Bank (Supranational) 4.375%, 9/20/12		8,000		8,162
iStar Financial, Inc., Series 1 5.875%, 3/15/16		3,000		2,588
JPMorgan Chase & Co. 5.75%, 1/02/13		5,000		5,127
Landwirtschaftliche Rentenbank, Series G MTN (Germany) 5.00%, 11/08/16		8,000		8,294
Lincoln National Corp. 7.00%, 5/17/66 (a)		55,000		50,948

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Principal Amount		Market Value
FINANCIALS (Continued)
Morgan Stanley 5.30%, 3/01/13	$	5,000	$	4,875
Royal Bank of Scotland Group PLC (United Kingdom) 5.00%, 10/01/14		2,000		1,901
SLM Corp., Series A MTN 5.375%, 5/15/14		2,000		1,699
Travelers (The) Cos., Inc. 6.25%, 3/15/37		41,000		35,316
Unilever Capital Corp. 5.90%, 11/15/32		31,000		30,324
Wells Fargo & Co. 5.00%, 11/15/14		2,000		1,947
				319,019
HEALTH CARE—0.2%
Abbott Laboratories 5.875%, 5/15/16		2,000		2,071
Bristol-Myers Squibb Co. 5.875%, 11/15/36		46,000		42,881
Eli Lilly & Co. 5.55%, 3/15/37		41,000		37,940
WellPoint, Inc. 5.25%, 1/15/16		2,000		1,869
				84,761
INDUSTRIALS—0.2%
Burlington Northern Santa Fe Corp. 6.15%, 5/01/37		40,000		37,958
CSX Corp. 6.00%, 10/01/36		29,000		24,954
				62,912
MATERIALS—0.2%
BHP Billiton Finance USA Ltd. (Australia) 4.80%, 4/15/13		8,000		7,856
CRH America, Inc. 6.00%, 9/30/16		5,000		4,666
Vale Overseas Ltd. (Cayman Islands) 6.875%, 11/21/36		38,000		37,851
Weyerhaeuser Co. 7.375%, 3/15/32		25,000		24,753
				75,126
TELECOMMUNICATION SERVICES—0.2%
BellSouth Corp. 6.00%, 11/15/34		32,000		29,717
Embarq Corp. 7.082%, 6/01/16		5,000		4,870
Verizon Global Funding Corp. 7.75%, 12/01/30		24,000		26,691
Vodafone Group PLC (United Kingdom) 5.625%, 2/27/17		2,000		1,974
				63,252

	Principal Amount		Market Value
UTILITIES—0.2%
Constellation Energy Group, Inc. 4.55%, 6/15/15	$	2,000	$	1,801
Dominion Resources, Inc., Series C 5.15%, 7/15/15		2,000		1,939
Exelon Generation Co. LLC 5.35%, 1/15/14		5,000		4,819
FirstEnergy Corp., Series C 7.375%, 11/15/31		24,000		25,895
Midamerican Energy Holdings Co. 6.125%, 4/01/36		29,000		27,996
Pacific Gas & Electric Co. 6.05%, 3/01/34		25,000		24,077
				86,527
Total Corporate Bonds (Amortized Cost $987,506)				951,467
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS—0.7%
FEDERAL HOME LOAN MORTGAGE CORP.—0.1%
6.25%, 7/15/32		40,000		45,582
UNITED STATES TREASURY BONDS/NOTES—0.6%
3.50%, 2/15/10		40,100		40,745
4.75%, 5/15/14		17,200		18,334
7.50%, 11/15/16		71,000		88,435
7.625%, 2/15/25		24,100		32,352
6.25%, 5/15/30		17,200		20,803
				200,669
Total United States Government & Agencies Obligations (Amortized Cost $244,077)				246,251
SOVEREIGN BONDS—0.1%
Province of Quebec Canada (Canada) 7.50%, 9/15/29		6,000		7,670
United Mexican States, Series A MTN (Mexico) 6.375%, 1/16/13		8,000		8,588
Total Sovereign Bonds (Amortized Cost $16,286)				16,258
Total Investments—99.3% (Amortized Cost $39,662,196)			$	37,317,543
Cash Equivalents—0.2% (b)				92,336
Other assets less liabilities—0.5%				195,423
Net Assets—100.0%			$	37,605,302

MTN - Medium Term Note.

REIT - Real Estate Investment Trust.

* Non-income producing security.

144A - Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2008, the aggregate market value of these securities amounted to $9,407 or 0.0% of net assets.

(a) Variable rate coupon. Stated interest rate was in effect at May 31, 2008.

(b) Represents an investment in BNY Hamilton Money Fund, Institutional Shares with annualized 7-day yield of 2.53% at May 31, 2008.

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND (Continued)

May 31, 2008

COUNTRY BREAKDOWN AS OF MAY 31, 2008

	Market Value		% of Net Assets
United States	$	27,207,733		72.4	%
United Kingdom		3,174,879		8.4
Japan		1,872,408		5.0
Switzerland		1,462,100		3.9
Spain		747,034		2.0
France		495,493		1.3
Germany		484,599		1.3
Netherlands		294,941		0.8
Bermuda		285,863		0.8
Italy		279,796		0.8
Sweden		233,527		0.6
Australia		221,024		0.6
Netherlands Antilles		176,876		0.5
Finland		125,553		0.3
Cayman Islands		80,070		0.2
Belgium		75,461		0.2
Luxembourg		73,790		0.2
Canada		9,646		0.0
Mexico		8,588		0.0
Supranational		8,162		0.0
Total Investments		37,317,543		99.3
Cash Equivalents		92,336		0.2
Other assets less liabilities		195,423		0.5
Net Assets	$	37,605,302		100.0	%

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS

TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND

May 31, 2008

	Number of Shares		Market Value
COMMON STOCKS—6.1%
CONSUMER DISCRETIONARY—0.6%
Aeropostale, Inc.*		25	$	874
ArvinMeritor, Inc.		7		105
Brookfield Homes Corp.		23		347
Cabela's, Inc., Class A*		300		4,155
Citadel Broadcasting Corp.*		670		1,179
Coach, Inc.*		301		10,926
Comcast Corp., Class A		543		12,218
Compagnie Financiere Richemont SA, Class A (Switzerland)		112		6,963
DeVry, Inc.		18		1,027
DIRECTV Group (The), Inc.*		670		18,826
Fleetwood Enterprises, Inc.*		549		2,284
Gaylord Entertainment Co.*		60		1,705
Home Depot (The), Inc.		302		8,263
HONDA MOTOR Co. Ltd. (Japan)		179		5,986
J. Crew Group, Inc.*		90		3,354
Jo-Ann Stores, Inc.*		203		4,570
Lear Corp.*		78		2,009
Liberty Global, Inc., Class A*		209		7,493
Live Nation, Inc.*		184		2,788
McDonald's Corp.		352		20,880
New York & Co., Inc.*		543		4,539
Omnicom Group, Inc.		54		2,647
Priceline.com, Inc.*		19		2,556
Rent-A-Center, Inc.*		240		5,035
Sony Corp. (Japan)		120		6,002
Steven Madden Ltd.*		16		328
Target Corp.		60		3,202
Time Warner, Inc.		84		1,334
Toyota Motor Corp. (Japan)		480		24,416
Under Armour, Inc., Class A*		48		1,718
Viacom, Inc., Class B*		299		10,710
Yum! Brands, Inc.		364		14,450
				192,889
CONSUMER STAPLES—0.5%
Altria Group, Inc.		341		7,591
British American Tobacco PLC (United Kingdom)		66		2,463
Carrefour SA (France)		42		2,942
Coca-Cola (The) Co.		417		23,877
ConAgra Foods, Inc.		449		10,587
Diageo PLC (United Kingdom)		143		2,784
Kraft Foods, Inc., Class A		280		9,094
L'Oreal SA (France)		6		729
Nestle SA (Switzerland)		30		14,716
Procter & Gamble (The) Co.		491		32,431
Reckitt Benckiser Group PLC (United Kingdom)		24		1,411
Ruddick Corp.		10		355
Tesco PLC (United Kingdom)		263		2,152
Unilever NV (Netherlands)		137		4,472
Unilever PLC (United Kingdom)		48		1,585
Wal-Mart Stores, Inc.		555		32,046
				149,235

	Number of Shares		Market Value
ENERGY—0.8%
BG Group PLC (United Kingdom)		341	$	8,531
BP PLC (United Kingdom)		1,728		20,762
Chevron Corp.		362		35,892
ConocoPhillips		143		13,313
ENI S.p.A (Italy)		150		6,103
EOG Resources, Inc.		202		25,983
Exxon Mobil Corp.		522		46,333
International Coal Group, Inc.*		784		7,895
Newpark Resources, Inc.*		670		4,724
Occidental Petroleum Corp.		35		3,218
Oilsands Quest, Inc.*		852		3,894
Petroleum Development Corp.*		15		1,037
Repsol YPF SA (Spain)		72		2,976
Royal Dutch Shell PLC, Class A (United Kingdom)		338		14,361
Royal Dutch Shell PLC, Class B (United Kingdom)		262		10,899
Schlumberger Ltd. (Netherlands Antilles)		119		12,034
Ship Finance International Ltd. (Bermuda)		125		3,836
Total SA (France)		118		10,286
				232,077
FINANCIALS—1.2%
Alexander's, Inc.* REIT		1		345
Alexandria Real Estate Equities, Inc. REIT		13		1,356
American Express Co.		676		31,332
American International Group, Inc.		71		2,556
Apollo Investment Corp.		412		7,437
Aspen Insurance Holdings Ltd. (Bermuda)		72		1,840
Assicurazioni Generali S.p.A (Italy)		30		1,246
Aviva PLC (United Kingdom)		239		2,978
AXA (France)		54		1,906
Banco Bilbao Vizcaya Argentaria SA (Spain)		137		3,051
Banco Santander SA (Spain)		856		17,812
Bank of America Corp.		497		16,903
Barclays PLC (United Kingdom)		580		4,298
BNP Paribas (France)		54		5,567
Cascade Bancorp		239		2,096
Charles Schwab (The) Corp.		724		16,058
Citigroup, Inc.		539		11,799
CME Group, Inc.		1		430
Commerce Group (The), Inc.		4		147
Commonwealth Bank of Australia (Australia)		84		3,389
Cousins Properties, Inc. REIT		24		635
Credit Suisse Group (Switzerland)		155		7,878
Deerfield Capital Corp. REIT		688		640
Deutsche Bank AG (Germany)		6		641
Digital Realty Trust, Inc. REIT		33		1,396
Equity One, Inc. REIT		15		348
FelCor Lodging Trust, Inc. REIT		301		4,473
First Industrial Realty Trust, Inc. REIT		60		1,880
Fortis (Belgium)		143		3,498
Franklin Resources, Inc.		46		4,656
Greenlight Capital Re Ltd., Class A (Cayman Islands)*		389		7,667
HBOS PLC (United Kingdom)		455		3,597

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
FINANCIALS (Continued)
Highwoods Properties, Inc. REIT		10	$	360
HSBC Holdings PLC (United Kingdom)		761		12,821
ING Groep NV (Netherlands)		90		3,432
Intesa Sanpaolo S.p.A (Italy)		400		2,620
JPMorgan Chase & Co.		426		18,318
Lincoln National Corp.		288		15,886
Lloyds TSB Group PLC (United Kingdom)		568		4,310
Maguire Properties, Inc. REIT		42		660
Mitsubishi UFJ Financial Group, Inc. (Japan)		720		7,352
Mizuho Financial Group, Inc. (Japan)		1		5,248
Montpelier Re Holdings Ltd. (Bermuda)		102		1,711
Morgan Stanley		60		2,654
Muenchener Rueckversicherungs-Gesellschaft AG (Germany)		6		1,124
National Australia Bank Ltd. (Australia)		96		2,866
National City Corp.		513		2,996
Nationwide Health Properties, Inc. REIT		37		1,263
Nomura Holdings, Inc. (Japan)		600		10,180
Nordea Bank AB (Sweden)		246		3,994
Northern Trust Corp.		60		4,560
NYSE Euronext		136		8,693
Platinum Underwriters Holdings Ltd. (Bermuda)		83		2,944
Post Properties, Inc. REIT		28		994
Potlatch Corp. REIT		31		1,499
Prudential PLC (United Kingdom)		137		1,800
Ramco-Gershenson Properties Trust REIT		303		6,772
Realty Income Corp. REIT		300		7,350
Royal Bank of Scotland Group PLC (United Kingdom)		1,093		4,936
Simon Property Group, Inc. REIT		41		4,074
SLM Corp.*		302		6,846
Societe Generale (France)		24		2,491
SVB Financial Group*		161		8,251
Swiss Re (Switzerland)		42		3,254
UBS AG (Switzerland)*		301		7,231
UniCredito Italiano S.p.A (Italy)		514		3,589
Vornado Realty Trust REIT		27		2,639
Wachovia Corp.		60		1,428
Washington Real Estate Investment Trust REIT		22		741
Wells Fargo & Co.		202		5,569
Zurich Financial Services AG (Switzerland)		24		7,024
				360,335
HEALTH CARE—0.8%
Abbott Laboratories		314		17,694
Alexion Pharmaceuticals, Inc.*		47		3,353
AstraZeneca PLC (United Kingdom)		96		4,183
Auxilium Pharmaceuticals, Inc.*		186		5,922
Becton, Dickinson & Co.		85		7,178
CIGNA Corp.		234		9,500
Dendreon Corp.*		514		2,673
Genzyme Corp.*		113		7,736
GlaxoSmithKline PLC (United Kingdom)		191		4,203
Healthspring, Inc.*		155		2,880
Illumina, Inc.*		28		2,197
Inverness Medical Innovations, Inc.*		66		2,413
Johnson & Johnson		455		30,368
Kindred Healthcare, Inc.*		143		3,945
McKesson Corp.		60		3,459

	Number of Shares		Market Value
HEALTH CARE (Continued)
Merck & Co., Inc.		364	$	14,181
Novartis AG (Switzerland)		215		11,267
OSI Pharmaceuticals, Inc.*		90		3,177
Perrigo Co.		42		1,538
Pfizer, Inc.		1,249		24,181
Psychiatric Solutions, Inc.*		180		6,565
Roche Holding AG (Switzerland)		71		12,212
Sanofi-Aventis SA (France)		36		2,680
STERIS Corp.		202		6,111
Sunrise Senior Living, Inc.*		202		5,349
Thermo Fisher Scientific, Inc.*		344		20,303
UnitedHealth Group, Inc.		370		12,658
				227,926
INDUSTRIALS—0.6%
ABB Ltd. (Switzerland)		171		5,542
ABM Industries, Inc.		202		4,410
Aecom Technology Corp.*		141		4,542
Allegiant Travel Co.*		178		3,720
Belden, Inc.		78		3,267
Boeing (The) Co.		23		1,904
Brady Corp., Class A		113		4,374
Caterpillar, Inc.		187		15,454
CDI Corp.		202		5,757
Curtiss-Wright Corp.		99		5,099
Emerson Electric Co.		60		3,491
Expeditors International of Washington, Inc.		37		1,742
FedEx Corp.		23		2,109
FreightCar America, Inc.		79		3,444
Fuel Tech, Inc.*		173		4,401
General Electric Co.		724		22,241
Granite Construction, Inc.		64		2,340
Illinois Tool Works, Inc.		60		3,222
Ingersoll-Rand Co. Ltd., Class A (Bermuda)		66		2,907
JetBlue Airways Corp.*		490		1,945
Koninklijke (Royal) Philips Electronics NV (Netherlands)		156		5,983
Mitsubishi Corp. (Japan)		360		12,413
Northrop Grumman Corp.		60		4,528
Raven Industries, Inc.		95		3,586
Regal-Beloit Corp.		87		4,046
RSC Holdings, Inc.*		353		4,158
Schneider Electric SA (France)		24		3,011
Siemens AG (Germany)		41		4,646
Simpson Manufacturing Co., Inc.		139		3,667
Trane, Inc.		233		10,816
Union Pacific Corp.		84		6,914
United Parcel Service, Inc., Class B		76		5,398
United Technologies Corp.		370		26,286
				197,363
INFORMATION TECHNOLOGY—0.7%
3Com Corp.*		867		2,185
Accenture Ltd., Class A (Bermuda)		263		10,736
Agilysys, Inc.		202		2,109
Amkor Technology, Inc.*		364		3,880
Cisco Systems, Inc.*		645		17,234
CommScope, Inc.*		6		329
eBay, Inc.*		370		11,104

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Number of Shares		Market Value
INFORMATION TECHNOLOGY (Continued)
Electronics for Imaging, Inc.*		114	$	1,889
Equinix, Inc.*		42		4,011
Foundry Networks, Inc.*		202		2,747
Google, Inc., Class A*		7		4,101
Hewlett-Packard Co.		60		2,824
Intel Corp.		670		15,531
International Business Machines Corp.		45		5,824
Ixia*		485		3,924
Juniper Networks, Inc.*		280		7,706
Lawson Software, Inc.*		323		2,817
Macrovision Solutions Corp.*		169		2,287
Microsoft Corp.		664		18,803
Motorola, Inc.		1,902		17,745
Nokia Oyj (Finland)		342		9,848
Nuance Communications, Inc.*		239		4,713
ON Semiconductor Corp.*		370		3,659
Orbcomm, Inc.*		473		2,928
Palm, Inc.*		202		1,224
Perficient, Inc.*		202		2,143
Quest Software, Inc.*		202		3,436
SAIC, Inc.*		185		3,687
SAP AG (Germany)		72		3,974
SAVVIS, Inc.*		119		1,985
Sonus Networks, Inc.*		538		2,308
Spansion, Inc., Class A*		298		939
Sun Microsystems, Inc.*		1,021		13,222
Symantec Corp.*		622		13,516
Telefonaktiebolaget LM Ericsson (Sweden)		1,156		3,142
TIBCO Software, Inc.*		664		5,126
Xerox Corp.		664		9,017
				222,653
MATERIALS—0.4%
Alcoa, Inc.		335		13,598
Anglo American PLC (United Kingdom)		155		10,473
Aptargroup, Inc.		54		2,415
ArcelorMittal (Luxembourg)		36		3,570
BASF AG (Germany)		30		4,493
Bayer AG (Germany)		36		3,189
BHP Billiton Ltd. (Australia)		204		8,461
BHP Billiton PLC (United Kingdom)		173		6,544
CF Industries Holdings, Inc.		29		3,970
Dow Chemical (The) Co.		333		13,453
E.I. du Pont de Nemours & Co.		330		15,810
Hercules, Inc.		419		8,644
Rio Tinto PLC (United Kingdom)		96		11,487
Southern Copper Corp.		36		3,968
Terra Industries, Inc.		155		6,763
Xstrata PLC (United Kingdom)		66		5,203
				122,041
TELECOMMUNICATION SERVICES—0.3%
Alaska Communications Systems Group, Inc.		301		3,895
AT&T, Inc.		419		16,718
BT Group PLC (United Kingdom)		688		3,018
Deutsche Telekom AG (Germany)		149		2,492
FairPoint Communications, Inc.		5		45
Koninklijke (Royal) KPN NV (Netherlands)		281		5,109

	Number of Shares		Market Value
TELECOMMUNICATION SERVICES (Continued)
Qwest Communications International, Inc.		2,383	$	11,558
Telefonica SA (Spain)		155		4,444
Time Warner Telecom, Inc., Class A*		197		3,684
Verizon Communications, Inc.		364		14,003
Vodafone Group PLC (United Kingdom)		4,108		13,172
				78,138
UTILITIES—0.2%
American Electric Power Co., Inc.		60		2,540
Constellation Energy Group, Inc.		25		2,156
E.ON AG (Germany)		6		1,275
Endesa SA (Spain)		114		5,850
Enel S.p.A (Italy)		335		3,761
Exelon Corp.		354		31,152
Iberdrola SA (Spain)		149		2,149
National Grid PLC (United Kingdom)		329		4,850
RWE AG (Germany)		30		3,874
Tokyo Electric Power (The) Co., Inc. (Japan)		341		8,302
Westar Energy, Inc.		364		8,736
				74,645
Total Common Stocks (Cost $1,894,024)				1,857,302
RIGHTS—0.0%
FINANCIALS—0.0%
UBS AG Rights, expiring 6/12/08 (Cost $0)		301		400
	Principal Amount		Market Value
CORPORATE BONDS—10.5%
CONSUMER DISCRETIONARY—0.2%
Comcast Cable Communications Holdings, Inc. 8.375%, 3/15/13	$	60,000		66,236
CONSUMER STAPLES—0.3%
Kroger (The) Co. 5.50%, 2/01/13		30,000		30,212
Wal-Mart Stores, Inc. 4.55%, 5/01/13		60,000		60,601
				90,813
ENERGY—0.7%
Apache Corp. 5.25%, 4/15/13		42,000		42,636
Hess Corp. 6.65%, 8/15/11		54,000		56,718
Kinder Morgan Energy Partners LP 6.75%, 3/15/11		42,000		43,445
Spectra Energy Capital LLC 6.25%, 2/15/13		60,000		61,039
				203,838
FINANCIALS—7.9%
American Express Co. 4.875%, 7/15/13		84,000		83,293
Ameriprise Financial, Inc. 5.35%, 11/15/10		30,000		30,084

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)

May 31, 2008

	Principal Amount		Market Value
FINANCIALS (Continued)
Bank of America Corp. 4.875%, 1/15/13	$	96,000	$	94,812
Boeing Capital Corp. Ltd. 5.80%, 1/15/13		60,000		62,885
Boston Properties LP 6.25%, 1/15/13		60,000		61,246
Citigroup, Inc. 6.00%, 2/21/12		155,000		157,719
European Investment Bank (Supranational) 4.625%, 5/15/14		287,000		294,448
General Electric Capital Corp. Series A MTN 7.375%, 1/19/10		30,000		31,640
5.875%, 2/15/12		30,000		31,040
Genworth Financial, Inc. 5.75%, 6/15/14		60,000		58,524
Goldman Sachs Group, LP 5.00%, 10/01/14		120,000		114,991
Goldman Sachs Group (The), Inc. 3.875%, 1/15/09		120,000		120,023
HSBC Finance Corp. 6.375%, 11/27/12		155,000		159,674
International Bank for Reconstruction & Development (Supranational) 4.125%, 8/12/09		233,000		236,325
International Lease Finance Corp. Series Q MTN 5.75%, 6/15/11		155,000		153,200
John Deere Capital Corp. 7.00%, 3/15/12		90,000		96,899
JPMorgan Chase & Co. 5.75%, 1/02/13		30,000		30,760
Kreditanstalt fuer Wiederaufbau (Germany) 4.25%, 6/15/10		96,000		98,411
Morgan Stanley 5.30%, 3/01/13		90,000		87,757
National Rural Utilities Cooperative Finance Corp., Series C MTN 7.25%, 3/01/12		36,000		38,441
Wachovia Corp. 5.25%, 8/01/14		90,000		87,275
Washington Mutual, Inc. 4.00%, 1/15/09		133,000		130,693
Wells Fargo & Co. 4.875%, 1/12/11		167,000		167,440
				2,427,580
INDUSTRIALS—0.5%
United Technologies Corp. 4.375%, 5/01/10		155,000		156,495
INFORMATION TECHNOLOGY—0.5%
International Business Machines Corp. 4.25%, 9/15/09		144,000		145,789
TELECOMMUNICATION SERVICES—0.1%
New Cingular Wireless Services, Inc. 7.875%, 3/01/11		30,000		32,159

	Principal Amount		Market Value
UTILITIES—0.3%
Exelon Generation Co. LLC 5.35%, 1/15/14	$	30,000	$	28,911
Progress Energy, Inc. 7.10%, 3/01/11		66,000		69,628
				98,539
Total Corporate Bonds (Amortized Cost $3,231,588)				3,221,449
UNITED STATES GOVERNMENT & AGENCIES OBLIGATIONS—81.7%
FEDERAL HOME LOAN MORTGAGE CORP.—3.2%
4.75%, 3/05/09		601,000		610,572
4.50%, 1/15/13		371,000		378,881
				989,453
FEDERAL NATIONAL MORTGAGE ASSOCIATION—1.1%
7.25%, 1/15/10		300,000		319,757
UNITED STATE TREASURY BONDS/NOTES—77.4%
3.125%, 9/15/08		2,703,500		2,713,641
4.625%, 9/30/08		420,200		423,976
3.125%, 10/15/08		2,904,000		2,918,293
4.75%, 11/15/08		2,278,600		2,307,085
4.50%, 2/15/09		607,500		617,609
2.625%, 3/15/09		1,234,100		1,239,595
4.875%, 8/15/09		2,733,600		2,815,611
4.625%, 11/15/09		2,851,300		2,939,737
3.50%, 2/15/10		1,743,200		1,771,255
4.75%, 2/15/10		1,403,400		1,455,699
6.50%, 2/15/10		1,462,200		1,556,787
4.50%, 5/15/10		1,633,900		1,692,364
3.875%, 7/15/10		994,100		1,019,031
4.75%, 5/15/14		186,100		198,371
				23,669,054
Total United States Government & Agencies Obligations (Amortized Cost $24,953,949)				24,978,264
SOVEREIGN BONDS—0.4%
Italy Government International Bond (Italy) 6.00%, 2/22/11		54,000		57,562
United Mexican States (Mexico) 4.625%, 10/08/08		66,000		66,379
Total Sovereign Bonds (Amortized Cost $123,493)				123,941
Total Investments—98.7% (Amortized Cost $30,203,054)			$	30,181,356
Cash Equivalents—0.5% (a)				157,003
Other assets less liabilities—0.8%				237,523
Net Assets—100.0%			$	30,575,882

MTN - Medium Term Note.

REIT - Real Estate Investment Trust.

* Non-Income producing security.

(a) Represents an investment in BNY Hamilton Money Fund, Institutional Shares with annualized 7-day yield of 2.53% at May 31, 2008.

See Notes to Financial Statements.

TDX Independence Funds, Inc.

SCHEDULE OF INVESTMENTS (CONTINUED)

TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND (Continued)

May 31, 2008

COUNTRY BREAKDOWN AS OF MAY 31, 2008

	Market Value		% of Net Assets
United States	$	28,898,664		94.5	%
Supranational		530,773		1.7
United Kingdom		162,821		0.5
Germany		124,119		0.4
Japan		79,899		0.3
Switzerland		76,487		0.3
Italy		74,881		0.3
Mexico		66,379		0.2
Spain		36,282		0.1
France		29,612		0.1
Bermuda		23,974		0.1
Netherlands		18,996		0.1
Australia		14,716		0.1
Netherlands Antilles		12,034		0.0
Finland		9,848		0.0
Cayman Islands		7,667		0.0
Sweden		7,136		0.0
Luxembourg		3,570		0.0
Belgium		3,498		0.0
Total Investments		30,181,356		98.7
Cash Equivalents		157,003		0.5
Other assets less liabilities		237,523		0.8
Net Assets	$	30,575,882		100.0	%

See Notes to Financial Statements.

TDX Independence Funds, Inc.

STATEMENTS OF ASSETS AND LIABILITIES

May 31, 2008

	TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND
ASSETS:
Investments at value	$	24,279,885		$	42,803,141		$	32,608,313
Foreign currency at value		23,256			45,740			49,512
Cash equivalents		417,350			414,916			176,645
Receivables:
Investment securities sold		16,320			77,177			128,961
Interest		226,685			206,778			41,130
Dividends		16,870			58,067			67,232
Capital stock sold		—			4,826,160			—
Foreign tax reclaim		1,899			6,471			6,959
From investment advisor		105,573			138,469			120,470
Total Assets		25,087,838			48,576,919			33,199,222
LIABILITIES:
Due to custodian		3,520			7,067			7,037
Payables:
Investment securities purchased		1,447			4,826,649			366
Investment advisory fees		11,837			20,815			16,520
Investment sub-advisory fees		65,103			114,483			90,860
Accrued expenses and other liabilities		52,590			68,484			63,046
Total Liabilities		134,497			5,037,498			177,829
NET ASSETS	$	24,953,341		$	43,539,421		$	33,021,393
NET ASSETS CONSIST OF:
Paid-in capital	$	25,106,365		$	44,769,851		$	34,706,007
Undistributed net investment income		289,270			424,969			272,900
Net realized loss on investments and foreign currency transactions		(42,206	)		(59,343	)		(96,216	)
Net unrealized depreciation on investments and foreign currency transactions		(400,088	)		(1,596,056	)		(1,861,298	)
Net Assets	$	24,953,341		$	43,539,421		$	33,021,393
NET ASSETS VALUE, per Common Share (par value $0.0001 per Common Share)	$	24.93		$	24.18		$	23.57
Number of Common Shares outstanding (12.5 billion Common Shares have been authorized)		1,000,800			1,800,800			1,400,800
Investments at cost	$	24,680,236		$	44,398,287		$	34,468,427
Foreign currency at cost	$	21,289		$	45,058		$	48,702

See Notes to Financial Statements.

	TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND			TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND
ASSETS:
Investments at value	$	37,317,543		$	30,181,356
Foreign currency at value		49,387			14,811
Cash equivalents		92,336			157,003
Receivables:
Investment securities sold		101,962			6,252
Interest		14,133			249,279
Dividends		76,173			3,833
Capital stock sold		4,689,939			—
Foreign tax reclaim		8,627			469
From investment advisor		125,059			115,244
Total Assets		42,475,159			30,728,247
LIABILITIES:
Due to custodian		4,140			7,991
Payables:
Investment securities purchased		4,692,486			17
Investment advisory fees		17,585			12,097
Investment sub-advisory fees		96,717			66,534
Accrued expenses and other liabilities		58,929			65,726
Total Liabilities		4,869,857			152,365
NET ASSETS	$	37,605,302		$	30,575,882
NET ASSETS CONSIST OF:
Paid-in capital	$	39,761,013		$	30,382,900
Undistributed net investment income		261,751			228,184
Net realized loss on investments and foreign currency transactions		(71,760	)		(13,657	)
Net unrealized depreciation on investments and foreign currency transactions		(2,345,702	)		(21,545	)
Net Assets	$	37,605,302		$	30,575,882
NET ASSETS VALUE, per Common Share (par value $0.0001 per Common Share)	$	23.49		$	25.46
Number of Common Shares outstanding (12.5 billion Common Shares have been authorized)		1,600,800			1,200,800
Investments at cost	$	39,662,196		$	30,203,054
Foreign currency at cost	$	44,202		$	14,556

TDX Independence Funds, Inc.

STATEMENTS OF OPERATIONS

	TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND
	For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008
INVESTMENT INCOME:
Interest	$	422,621		$	401,980		$	108,137
Dividends		95,335			336,712			371,084
Amortization/accretion		(41,753	)		(28,351	)		(3,766	)
Foreign withholding taxes		(4,180	)		(14,211	)		(15,211	)
Total investment income		472,023			696,130			460,244
EXPENSES:
Sub-advisory fees		65,103			114,483			90,860
Professional fees		32,870			39,060			35,926
Directors		23,828			34,576			26,522
Compliance		19,894			30,948			26,138
Listing fees		15,049			15,049			15,049
Advisory fees		11,837			20,815			16,520
Printing		5,210			8,149			6,942
Other expenses		9,263			11,229			10,435
Total Expenses		183,054			274,309			228,392
Less fees waived:
Sub-advisory fees		(65,103	)		(114,483	)		(90,860	)
Other fees assumed by the Sub-Advisor		(40,469	)		(23,986	)		(29,610	)
Net Expenses		77,482			135,840			107,922
NET INVESTMENT INCOME		394,541			560,290			352,322
REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized loss from:
Investment transactions		(23,786	)		(41,190	)		(89,134	)
In-kind redemptions		—			—			—
Foreign currency transactions		2,051			1,546			2,938
Net realized loss		(21,735	)		(39,644	)		(86,196	)
Net unrealized appreciation/(depreciation) on:
Investments		(400,351	)		(1,595,146	)		(1,860,114	)
Foreign currency transactions		263			(910	)		(1,184	)
Net unrealized depreciation		(400,088	)		(1,596,056	)		(1,861,298	)
Net realized and unrealized loss		(421,823	)		(1,635,700	)		(1,947,494	)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(27,282	)	$	(1,075,410	)	$	(1,595,172	)

* Commencement of Investment Operations.

See Notes to Financial Statements.

	TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND			TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND
	For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008
INVESTMENT INCOME:
Interest	$	37,063		$	465,435
Dividends		428,850			20,779
Amortization/accretion		(1,273	)		(89,393	)
Foreign withholding taxes		(17,517	)		(983	)
Total investment income		447,123			395,838
EXPENSES:
Sub-advisory fees		96,717			66,534
Professional fees		35,771			38,158
Directors		31,610			21,741
Compliance		26,017			24,359
Listing fees		15,049			15,049
Advisory fees		17,585			12,097
Printing		6,718			6,439
Other expenses		10,429			10,039
Total Expenses		239,896			194,416
Less fees waived:
Sub-advisory fees		(96,717	)		(66,534	)
Other fees assumed by the Sub-Advisor		(28,343	)		(48,710	)
Net Expenses		114,836			79,172
NET INVESTMENT INCOME		332,287			316,666
REALIZED AND UNREALIZED GAIN/(LOSS):
Net realized loss from:
Investment transactions		(67,129	)		(13,374	)
In-kind redemptions		—			—
Foreign currency transactions		2,369			947
Net realized loss		(64,760	)		(12,427	)
Net unrealized appreciation/(depreciation) on:
Investments		(2,344,653	)		(21,698	)
Foreign currency transactions		(1,049	)		153
Net unrealized depreciation		(2,345,702	)		(21,545	)
Net realized and unrealized loss		(2,410,462	)		(33,972	)
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,078,175	)	$	282,694

See Notes to Financial Statements.

TDX Independence Funds, Inc.

STATEMENTS OF CHANGES IN NET ASSETS

	TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND
	For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008
OPERATIONS:
Net investment income	$	394,541		$	560,290		$	352,322
Net realized loss on investments and foreign currency transactions		(21,735	)		(39,644	)		(86,196	)
Net unrealized depreciation on investments and foreign currency transactions		(400,088	)		(1,596,056	)		(1,861,298	)
Net increase/(decrease) in net assets resulting from operations		(27,282	)		(1,075,410	)		(1,595,172	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(107,322	)		(136,867	)		(82,356	)
Net realized gain on investment and foreign currency transactions		(18,420	)		(18,140	)		(7,086	)
Total distributions to shareholders		(125,742	)		(155,007	)		(89,442	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		25,106,365			44,769,838			34,706,007
Value of shares repurchased		—			—			—
Net increase in net assets resulting from shareholder transactions		25,106,365			44,769,838			34,706,007
Net increase in net assets		24,953,341			43,539,421			33,021,393
NET ASSETS:
Beginning of period		—			—			—
End of period	$	24,953,341		$	43,539,421		$	33,021,393
Undistributed net investment income at end of period	$	289,270		$	424,969		$	272,900
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period		—			—			—
Shares sold		1,000,800			1,800,800			1,400,800
Shares repurchased		—			—			—
Shares outstanding, end of period		1,000,800			1,800,800			1,400,800

* Commencement of Investment Operations.

See Notes to Financial Statements.

	TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND			TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND
	For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008
OPERATIONS:
Net investment income	$	332,287		$	316,666
Net realized loss on investments and foreign currency transactions		(64,760	)		(12,427	)
Net unrealized depreciation on investments and foreign currency transactions		(2,345,702	)		(21,545	)
Net increase/(decrease) in net assets resulting from operations		(2,078,175	)		282,694
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(72,901	)		(89,429	)
Net realized gain on investment and foreign currency transactions		(4,635	)		(283	)
Total distributions to shareholders		(77,536	)		(89,712	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		39,761,013			30,382,900
Value of shares repurchased		—			—
Net increase in net assets resulting from shareholder transactions		39,761,013			30,382,900
Net increase in net assets		37,605,302			30,575,882
NET ASSETS:
Beginning of period		—			—
End of period	$	37,605,302		$	30,575,882
Undistributed net investment income at end of period	$	261,751		$	228,184
CHANGES IN SHARES OUTSTANDING:
Shares outstanding, beginning of period		—			—
Shares sold		1,600,800			1,200,800
Shares repurchased		—			—
Shares outstanding, end of period		1,600,800			1,200,800

See Notes to Financial Statements.

TDX Independence Funds, Inc.

FINANCIAL HIGHLIGHTS

	TDX INDEPENDENCE 2010 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2020 EXCHANGE-TRADED FUND			TDX INDEPENDENCE 2030 EXCHANGE-TRADED FUND
For a Share outstanding throughout each period	For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008
Net Asset Value, beginning of period	$	25.39		$	25.52		$	25.60
Income from Investment Operations:
Net investment income**		0.55			0.44			0.35
Net realized and unrealized loss on investments and foreign currency transactions**		(0.80	)		(1.67	)		(2.29	)
Total from investment operations		(0.25	)		(1.23	)		(1.94	)
Distributions paid to shareholders from:
Net investment income		(0.18	)		(0.10	)		(0.08	)
Net realized capital gains		(0.03	)		(0.01	)		(0.01	)
Total distributions		(0.21	)		(0.11	)		(0.09	)
Net Asset Value, end of period	$	24.93		$	24.18		$	23.57
Total Return***		(0.99	)%		(4.82	)%		(7.59	)%
Ratios/Supplemental Data:
Net Assets, end of period (in 000's)	$	24,953		$	43,539		$	33,021
Ratios to average net assets:
Expenses, net of expense reimbursements⁺		0.65	%		0.65	%		0.65	%
Expenses, prior to expense reimbursements⁺		1.55	%		1.32	%		1.38	%
Net investment income⁺		3.33	%		2.69	%		2.13	%
Portfolio turnover rate⁺⁺		22	%		20	%		13	%

  *  Commencement of Investment Operations.
  **  Based on average shares outstanding.
  ***  Total Return is calculated assuming an initial investment made at the Net Asset Value at the beginning of the period, reinvestment of all dividends and distributions at Net Asset Value during the period, and redemption at Net Asset Value on the last day of the period. Total Return calculated for a period of less than one year is not annualized. The Total Return would have been lower if certain fees had not been reimbursed by the investment sub-advisor.
  ⁺  Annualized.
  ⁺⁺  Portfolio turnover is not annualized and does not include securities received or delivered from processing creations or redemptions.
  (a)  Amount distributed was $0.004 per share.
  (b)  Amount distributed was $0.0005 per share.

See Notes to Financial Statements.

	TDX INDEPENDENCE 2040 EXCHANGE-TRADED FUND			TDX INDEPENDENCE IN-TARGET EXCHANGE-TRADED FUND
For a Share outstanding throughout each period	For the Period October 1, 2007* through May 31, 2008			For the Period October 1, 2007* through May 31, 2008
Net Asset Value, beginning of period	$	25.64		$	25.08
Income from Investment Operations:
Net investment income**		0.29			0.43
Net realized and unrealized loss on investments and foreign currency transactions**		(2.38	)		0.10
Total from investment operations		(2.09	)		0.53
Distributions paid to shareholders from:
Net investment income		(0.06	)		(0.15	)
Net realized capital gains		(0.00	)(a)		(0.00	)(b)
Total distributions		(0.06	)		(0.15	)
Net Asset Value, end of period	$	23.49		$	25.46
Total Return***		(8.14	)%		2.12	%
Ratios/Supplemental Data:
Net Assets, end of period (in 000's)	$	37,605		$	30,576
Ratios to average net assets:
Expenses, net of expense reimbursements⁺		0.65	%		0.65	%
Expenses, prior to expense reimbursements⁺		1.36	%		1.61	%
Net investment income⁺		1.89	%		2.62	%
Portfolio turnover rate⁺⁺		10	%		21	%

See Notes to Financial Statements.

TDX Independence Funds, Inc.

NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION

TDX Independence Funds, Inc. (the "Company"), formerly TDAX Funds, Inc., was organized as a Maryland corporation on December 22, 2006 and is registered under the Investment Company Act of 1940, as amended (the "Act").

As of May 31, 2008, the following five (5) series of exchange-traded funds ("ETF") (each a "Fund" and collectively the "Funds" or "TDX Independence Exchange-Traded Funds") were in operation and trading:

TDX Independence 2010 Exchange-Traded Fund				"Independence 2010 ETF"

TDX Independence 2020 Exchange-Traded Fund				"Independence 2020 ETF"

TDX Independence 2030 Exchange-Traded Fund				"Independence 2030 ETF"

TDX Independence 2040 Exchange-Traded Fund				"Independence 2040 ETF"

TDX Independence In-Target Exchange-Traded Fund				"Independence In-Target ETF"

XShares Advisors LLC (the "Advisor") serves as investment advisor to the Funds and has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds' Board of Directors.

Each Fund offers shares, known as TDX Independence Target Date Shares that are listed and traded on NYSE Arca, Inc. ("NYSE Arca"). Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value, only in large specified lots, consisting of 200,000 shares, each called a "Creation Unit." Except when aggregated in Creation Units, shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to track the performance, before fees and expenses, of a particular index (the "Underlying Index"). Zacks Investment Research ("Zacks") is the creator of each Underlying Index. Each Underlying Index is comprised of a mix of securities from three broad asset classes, international equities, domestic equities, and fixed income (including, cash, cash equivalents or short-term money market instruments). These Underlying Indexes are designed to reflect a portfolio of investments that can be used for lifecycle investing. Lifecycle investing is an investment technique that starts by targeting a particular investment horizon. That investment horizon corresponds to the date the investor expects to need his or her invested assets.

The underlying indexes for the TDX Independence Exchange-Traded Funds are:

Fund Index

Independence 2010 ETF				Zacks 2010 Lifecycle Index

Independence 2020 ETF				Zacks 2020 Lifecycle Index

Independence 2030 ETF				Zacks 2030 Lifecycle Index

Independence 2040 ETF				Zacks 2040 Lifecycle Index

Independence In-Target ETF				Zacks In-Target Lifecycle Index

2. SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("US GAAP") requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

A. Security Valuation The net asset value, or NAV, of each Fund's shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m., Eastern Time. NAV per share is computed by dividing the net assets by the number of shares outstanding. When calculating the NAV of the Funds' shares, stocks held by a Fund are valued at their market value when reliable market quotations are readily available. Certain short-term debt instruments used to manage a Fund's cash are valued on the basis of amortized cost. The values of any foreign securities held by a Fund are converted into U.S. dollars using an exchange rate obtained from an independent third party.

B. Fair Value When reliable market quotations are not readily available, securities are priced at their fair value. A Fund also may use fair-value pricing if the value of a security it holds has been materially affected by events occurring before the Fund's pricing time but after the close of the primary markets or exchanges on which the security is traded. Fair-value prices are determined by a committee (the "Pricing Committee) according to procedures adopted by Mellon Capital Management Corporation ("BNY"), formerly BNY Investment Advisors. BNY was delegated by the Board of Directors to perform this function. When fair-value pricing is employed, the prices of securities used by a Fund to calculate its NAV may differ from quoted or published prices for the same securities.

C. Securities Transactions Securities transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities are calculated on the identified cost-methods. Corporate actions (including cash dividends) are recorded on the ex-date.

D. Investment Income Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis.

E. Dividends and Distributions to Shareholders It is each Fund's policy to comply with all requirements of the Internal Revenue Code of 1986, as amended ("the Code"). Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company ("RIC") under Subchapter M of the Code. It is the policy of each Fund to pay out dividends, if any, to investors at least annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. The Funds may occasionally be required to make supplemental distributions at some other time during the year. The Funds reserve the right to declare special distributions if, in their reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profit for tax purposes, are reported as a tax return of capital. Each Fund pays out dividends from its net investment income to investors annually. Each Fund distributes any net capital gains annually.

F. Expenses/Reimbursements Expenses that are directly related to each of the Funds are charged to that respective Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund. Each Fund is entitled to use its respective Underlying Index pursuant to a licensing agreement between Zacks and Amerivest Investment Management, LLC ("Amerivest") and a sub-licensing agreement between Amerivest and the Advisor. There is no charge to the Funds in connection with these licensing agreements. Expenses related to the initial organization, registration and offering of the Funds were borne by Amerivest.

G. Foreign Currency Transactions The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar shall be translated into U.S. dollars using the applicable exchange rates as of the close of London Exchange. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. Federal income tax regulations.

H. Taxes On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management has evaluated the implications of FIN 48 and there is no impact in the financial statements for the period ended May 31, 2008.

I. Short Term Investments The Fund may invest in short-term instruments, which include obligations of the U.S. government and its agencies or instrumentalities; commercial paper, variable amount master demand notes and other debt securities, including high quality U.S. dollar-denominated short-term bonds and notes issued by domestic and foreign corporations; variable and floating rate securities; bank obligations; repurchase agreements collateralized by these securities; and shares of other investment companies that primarily invest in any of the above-referenced securities.

TDX Independence Funds, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

J. Security Lending Each Fund may lend portfolio securities to certain qualified institutional investors (typically brokers, dealers, banks, or other financial institutions). The loans are collateralized at all times by cash and/or high grade debt obligations in an amount at least equal to 105% of the current market value of the loaned securities and that collateral is marked to market daily. By lending its investment securities, a Fund attempts to increase its net investment income through the receipt of interest on the collateral received. The Funds will pay reasonable administration and custodial fees in connection with the loan of securities. If the borrower defaults on its obligation to return the securities lent because of insolvency or other reasons, a Fund could experience delays and costs in recovering the securities lent or in gaining access to the collateral. These delays and costs could be greater for foreign securities. If a Fund is not able to recover the securities lent, a Fund may sell the collateral and purchase a replacement investment in the market. The value of the collateral could decrease below the value of the replacement investment by the time the replacement investment is purchased. Cash received as collateral through loan transactions may be invested in other eligible securities. Investing this cash subjects that investment to market appreciation or depreciation.

The securities lending income earned by the Funds, if any, is disclosed on the Statements of Operations.

3. INVESTMENT ADVISORY AND OTHER AGREEMENTS

The Advisor has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Fund's Board of Directors. Under the Investment Advisory Agreement, the Advisor is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Funds to operate. The Advisor will also be responsible for employing any sampling strategy for the Funds. The Investment Advisory Agreement has an initial term of two years and can be terminated with sixty days written notice when authorized either by a majority vote of each Fund's outstanding voting shares or by a vote of a majority of the Company's Board of Directors.

For the services it provides to the Funds, the Advisor receives a unified advisory fee based on a percentage of the daily net assets of each Fund. The advisory fee is calculated daily and paid monthly in arrears. Out of the advisory fee, the Advisor pays, or arranges for the payment of, all fees and expenses of the Sub-Advisors, Transfer Agent, the Administrator and Accounting Agent and the Custodian. Each Fund is responsible for the payment of all other expenses associated with its operation, including but not limited to, brokerage expenses, taxes, interest, fees and expenses of counsel to the Funds, fees and expenses of the Disinterested Directors (including legal counsel fees), certain out-of-pocket expenses of the Advisor or Sub-Advisors, including, but not limited to cost of obtaining prices for security valuations (including manual broker quotes), Federal Reserve charges related to securities transactions, postage and insurance on physical transfer items, telecommunication charges, and proxy voting execution, advice and reporting etc., fees and expenses of the Chief Compliance Officer and expenses associated with the Funds' compliance program, litigation expenses, fees and expenses of the Funds' independent auditors, registration fees, expenses associated with compliance by the Fund with regulatory requirements, including those relating to the development and distribution of its prospectus and shareholder reports, and extraordinary expenses. Pursuant to the Investment Advisory Agreement, the Advisor is authorized to engage one or more sub-advisors to perform any of the services contemplated to be performed by the Advisor under the Investment Advisory Agreement.

Amerivest and BNY act as investment sub-advisors to the Funds (each a "Sub-Advisor" and, together, the "Sub-Advisors"). Amerivest is a wholly owned subsidiary of TD AMERITRADE Holding Corporation. BNY is a separate identifiable division of The Bank of New York Mellon. Pursuant to separate Sub-Advisory Agreements between the Advisor and each Sub-Advisor, the Sub-Advisors will be responsible for the day-to-day management of the Funds, subject to the supervision of the Advisor and the Funds' Board of Directors. In this regard, the Sub-Advisors will be responsible for implementing the replication strategy for each Fund with regard to its underlying index and for general administration, compliance and management services as may be agreed between the Advisor and Sub-Advisors from time to time.

For its services provided to the Funds under the Investment Advisory Agreement, each Fund pays the Advisor a fee equal to 0.65% (per annum) of each Fund's average daily net assets. The fee is accrued daily and paid monthly in arrears.

In accordance with the terms of the Sub-Advisory Agreement with Amerivest, the Advisor will pay Amerivest, out of its own resources, a fee at the annual rate of 0.55% of each Fund's average daily net assets for the first $5 billion in assets and 0.60% of each Fund's average daily net assets in excess of $5 billion.

Out of the Sub-Advisory fee, Amerivest pays all fees and expenses of BNY, the Transfer Agent, Administrator and Accounting Agent and Custodian. Amerivest has contractually agreed to reduce its fees and/or pay Fund operating expenses (excluding, among other things, acquired fund fees and expenses, interest, taxes and extraordinary expenses) in order to limit each Fund's net annual operating expenses for shares of the Fund to 0.65% of the Fund's average net assets (the "Expense Cap"). The Expense Cap will remain in effect until at least September 30, 2008. Amerivest is permitted to be reimbursed for fee reductions and/or expense payments made in the prior three fiscal years. This reimbursement may be requested by Amerivest if the aggregate amount actually paid by the Fund toward operating expenses for such fiscal year (taking into account the reimbursement) does not exceed the Expense Cap.

Amerivest pays BNY, out of its own resources, a fee based on a percentage of the average daily net assets of each Fund as set forth below:

• 10 basis points (0.10%) of the first $100 million in combined daily net assets of all Funds; and

• 5 basis points (0.05%) of the combined daily net assets of all Funds in excess of $100 million.

There is a minimum annual fee of $35,000 per Fund.

Expenses related to the initial organization, registration and offering of the Funds were borne by Amerivest.

The amounts subject to reimbursement to Amerivest at May 31, 2008 were as follows:

	Reimbursements available through:
	5/31/2008		5/31/2009		5/31/2010
Independence 2010 ETF	$	105,572	$	105,572	$	105,572
Independence 2020 ETF		138,469		138,469		138,469
Independence 2030 ETF		120,470		120,470		120,470
Independence 2040 ETF		125,060		125,060		125,060
Independence In-Target ETF		115,244		115,244		115,244

For the period ended November 30, 2007, the advisory and sub-advisory fee waivers and expenses assumed by Amerivest were as follows:

	Amerivest Fee Waiver		Expense Assumed by Amerivest
Independence 2010 ETF	$	65,103	$	40,469
Independence 2020 ETF		114,483		23,986
Independence 2030 ETF		90,860		29,610
Independence 2040 ETF		96,717		28,343
Independence In-Target ETF		66,534		48,710

The Bank of New York, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent and Transfer Agent for each Fund.

ALPS Distributors, Inc. serves as the distributor of Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds.

The Board of Directors is currently comprised of four Directors, of whom three Directors are not "interested" persons of the Company or the Advisor, as defined under the 1940 Act ("Disinterested Directors"). The Company pays each Disinterested Director an annual fee of $30,000, plus a fee of $4,000 for the attendance of each meeting. Each Disinterested Director will also receive $2,000 per Audit Committee meeting attended, except for the Audit Committee Chairman, who will receive $3,000 per Audit Committee meeting attended. The Company reimburses each Director for their costs and expenses associated with their performance of their duties hereunder, including the cost and expenses associated with attendance of meetings of the Board. Directors' fees and expenses are allocated among the Funds based on each Fund's relative average net assets.

TDX Independence Funds, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

4. FEDERAL INCOME TAXES

At May 31, 2008, the components of accumulated earnings/loss on tax-basis were as follows:

	Accumulated Earnings		Net Accumulated Capital and other Gains/Losses		Unrealized Appreciation/ Depreciation on Investments			Gross Unrealized Appreciation		Gross Unrealized Depreciation			Unrealized Appreciation/ Depreciation on Currency			Total Accumulated Earnings/Loss
Independence 2010 ETF	$	289,270	$	—	$	(430,786	)	$	419,819	$	(850,605	)	$	263		$	(141,252	)
Independence 2020 ETF		427,928		3,594		(1,661,042	)		1,259,727		(2,920,769	)		(910	)		(1,230,430	)
Independence 2030 ETF		272,900		—		(1,902,288	)		1,246,592		(3,148,880	)		(1,184	)		(1,630,572	)
Independence 2040 ETF		261,751		—		(2,412,141	)		1,384,489		(3,796,630	)		(1,049	)		(2,151,439	)
Independence In-Target ETF		231,798		361		(39,330	)		154,039		(193,369	)		153			192,982

At May 31, 2008, the cost of investments for Federal income tax purposes was as follows:

	Cost
Independence 2010 ETF	$	24,710,671
Independence 2020 ETF		44,464,183
Independence 2030 ETF		34,510,601
Independence 2040 ETF		39,729,684
Independence In-Target ETF		30,220,686

Distributions to Shareholders

The tax character of distributions paid during the period ended May 31, 2008 was as follows:

	Distributions paid from Ordinary Income
Independence 2010 ETF	$	125,742
Independence 2020 ETF		155,007
Independence 2030 ETF		89,442
Independence 2040 ETF		77,536
Independence In-Target ETF		89,712

Capital losses incurred after October 31 ("post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year. Capital losses can be carried forward for a period of eight years.

During the period ended May 31, 2008, the following funds incurred and elected to defer net capital losses as follows:

	Post-October Losses on Capital		Post-October Losses on Currency
Independence 2010 ETF	$	11,772	$	—
Independence 2020 ETF		—		—
Independence 2030 ETF		54,042		—
Independence 2040 ETF		4,272		—
Independence In-Target ETF		—		—

In order to present paid-in capital and accumulated net realized gains or losses on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to additional paid-in capital, undistributed net investment income and accumulated net realized gains or losses on investments. For the period ended May 31, 2008, the adjustments were as follows:

	Undistributed Net Investment Income (Loss)		Undistributed Capital Gains/(Accumulated Losses)			Paid in Capital
Independence 2010 ETF	$	2,051	$	(2,051	)	$	—
Independence 2020 ETF		1,546		(1,559	)		13
Independence 2030 ETF		2,934		(2,934	)		—
Independence 2040 ETF		2,365		(2,365	)		—
Independence In-Target ETF		947		(947	)		—

5. INVESTMENT PORTFOLIO TRANSACTIONS

For the period ended May 31, 2008, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:

	Purchases		Sales
Independence 2010 ETF	$	3,677,574	$	3,573,865
Independence 2020 ETF		6,179,312		6,235,552
Independence 2030 ETF		3,036,529		3,054,552
Independence 2040 ETF		2,623,397		2,580,339
Independence In-Target ETF		7,330,609		2,489,208

For the period ended May 31, 2008, the cost of in-kind purchases and the proceeds from in-kind sales were as follows:

	Purchases		Sales
Independence 2010 ETF	$	23,284,001	$	—
Independence 2020 ETF		44,534,885		—
Independence 2030 ETF		34,591,831		—
Independence 2040 ETF		39,702,591		—
Independence In-Target ETF		16,762,603		—

6. CAPITAL SHARE TRANSACTIONS

As of May 31, 2008, there were 12.5 billion shares of $0.0001 par value capital shares authorized by the Company. Capital shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of equity securities constituting a portfolio sampling representation of the securities included in the relevant Fund's underlying index and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

7. INDEMNIFICATIONS

In the normal course of business the Company enters into contracts that contain a variety of representations which provide general indemnifications. The Company's maximum exposure under these arrangements cannot be known; however, the Company expects any risk of loss to be remote.

TDX Independence Funds, Inc.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8. NEW ACCOUNTING PRONOUNCEMENT

On September 15, 2006, the FASB released Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157") which provides enhanced guidance for measuring fair value. The standard requires companies to provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair valuations on an entity's financial performance. The standard does not expand the use of fair value in any new circumstances, but provides clarification on acceptable fair valuation methods and applications. Adoption of FAS 157 is required for fiscal years beginning after November 15, 2007. At this time, management is evaluating the implications of FAS 157 and its impact in the financial statements has not yet been determined.

9. SUBSEQUENT EVENT

Effective July 15, 2008, the name of TDAX Funds, Inc. was changed to TDX Independence Funds, Inc. Additionally, each of the funds changed their names as follows:

Former Name

New Name

TDAX Independence 2010 ETF				TDX Independence 2010 ETF

TDAX Independence 2020 ETF				TDX Independence 2020 ETF

TDAX Independence 2030 ETF				TDX Independence 2030 ETF

TDAX Independence 2040 ETF				TDX Independence 2040 ETF

TDAX Independence In-Target ETF				TDX Independence In-Target ETF

TDX Independence Funds, Inc.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of
TDX Independence Funds, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of TDX Independence Funds, Inc. (formerly TDAX Funds, Inc.) (the "Company") consisting of: TDX Independence 2010 Exchange-Traded Fund (formerly TDAX Independence 2010 Exchange-Traded Fund), TDX Independence 2020 Exchange-Traded Fund (formerly TDAX Independence 2020 Exchange-Traded Fund), TDX 2030 Independence Exchange-Traded Fund (formerly TDAX Independence 2030 Exchange-Traded Fund), TDX 2040 Independence Exchange-Traded Fund (formerly TDAX Independence 2040 Exchange-Traded Fund) and TDX Independence In-Target Exchange-Traded Fund (formerly TDAX Independence In-Target Exchange-Traded Fund) as of May 31, 2008, and the related statements of operations, changes in net assets and financial highlights for the period from October 1, 2007 (commencement of operations) through May 31, 2008. These financial statements and financial highlights are the responsibility of the Company'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 audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2008. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. 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 portfolios constituting TDX Independence Funds, Inc. as of May 31, 2008, the results of their operations, changes in their net assets and their financial highlights for the period from October 1, 2007 (commencement of operations) through May 31, 2008 in conformity with accounting principles generally accepted in the United States of America.

Eisner LLP
New York, New York
July 29, 2008

TDX Independence Funds, Inc.

FREQUENCY DISTRIBUTION OF DISCOUNTS & PREMIUMS (UNAUDITED)

The chart below presents information about differences between the per share net asset value ("NAV") of each Fund and the market trading price of each Fund. For these purposes, the "market price" is the mid-point of the highest bid and lowest offer for Fund shares as of the close of trading on the exchange where Fund shares are listed. The term "premium" is sometimes used to describe a market price in excess of NAV and the term "discount" is sometimes used to describe a market price below NAV. The chart presents information about the size and frequency of premiums or discounts. As with other exchange-traded funds, the market price of Fund shares is typically slightly higher or lower than the Fund's per share NAV. Factors that contribute to the differences between market price and NAV include the supply and demand for Fund shares and investors' assessments of the underlying value of a Fund's portfolio securities.

	MARKET PRICE ABOVE OR EQUAL TO NAV								MARKET PRICE BELOW NAV
	Basis Point Differential*			Number of Days		Percentage of Total Days			Number of Days		Percentage of Total Days
TDX Independence 2010 Exchange-Traded Fund October 1, 2007** — May 31, 2008		0 -	<.25%		6		3.57	%		1		0.59	%
		.25	% - <.50%		26		15.48	%		0		0.00	%
		.50	% - <.75%		89		52.98	%		0		0.00	%
		.75	% - <1.00%		41		24.40	%		0		0.00	%
		>=1.00%			5		2.98	%		0		0.00	%
		Total			167		99.41	%		1		0.59	%
TDX Independence 2020 Exchange-Traded Fund October 1, 2007** — May 31, 2008		0 -	<.25%		3		1.78	%		2		1.19	%
		.25	% - <.50%		26		15.48	%		0		0.00	%
		.50	% - <.75%		72		42.86	%		0		0.00	%
		.75	% - <1.00%		54		32.14	%		0		0.00	%
		>=1.00%			11		6.55	%		0		0.00	%
		Total			166		98.81	%		2		1.19	%
TDX Independence 2030 Exchange-Traded Fund October 1, 2007** — May 31, 2008		0 -	<.25%		8		4.76	%		2		1.19	%
		.25	% - <.50%		31		18.45	%		1		0.60	%
		.50	% - <.75%		84		50.00	%		0		0.00	%
		.75	% - <1.00%		34		20.24	%		0		0.00	%
		>=1.00%			8		4.76	%		0		0.00	%
		Total			165		98.21	%		3		1.79	%
TDX Independence 2040 Exchange-Traded Fund October 1, 2007** — May 31, 2008		0 -	<.25%		9		5.36	%		2		1.19	%
		.25	% - <.50%		40		23.81	%		4		2.38	%
		.50	% - <.75%		78		46.43	%		0		0.00	%
		.75	% - <1.00%		25		14.88	%		0		0.00	%
		>=1.00%			9		5.36	%		1		0.59	%
		Total			161		95.84	%		7		4.16	%
TDX Independence In-Target Exchange-Traded Fund October 1, 2007** — May 31, 2008		0 -	<.25%		6		3.57	%		0		0.00	%
		.25	% - <.50%		36		21.43	%		0		0.00	%
		.50	% - <.75%		114		67.86	%		0		0.00	%
		.75	% - <1.00%		10		5.95	%		0		0.00	%
		>=1.00%			2		1.19	%		0		0.00	%
		Total			168		100.00	%		0		0.00	%

* A basis point equals one-hundredth of one percent (0.01%). ** Commencement of investment operations.

TDX Independence Funds, Inc.

OFFICERS AND DIRECTORS

Name, Address,
and Age

Position(s)
Held with
Fund

Term of
Office and
Length of
Time Served

Principal
Occupation(s)
During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Director

Other Directorships
held by Director

Disinterested Directors:

R. Charles Tschampion
Age 62,
25 Great Oak Drive
Short Hills, NJ 07078

Director, Chairman of the Audit Committee and Member of the Nominating Committee

Since 2007

Director, Industry Relations, CFA Institute since 2005; Managing Director of Investment Research and Managing Director of Defined Contribution Plans, General Motors Asset Management Corporation from 1994 to 2005.

Trustee and Member of the Audit Committee, SPDR Select Sector Trust; Trustee of Lehigh University and Chair of the Investment Sub-Committee for the Lehigh University Endowment Fund; Director, Select High Yield Oversees Fund, LLC; Director, Real Estate Information Standards (REIS) Board.

Ernest J. Scalberg
Age 63,
176 Mal Paso Road
Carmel, CA 93923

Director, Member of the Audit and Nominating Committees

Since 2007

Associate Vice President for External Programs and Dean of the Fisher Graduate School of International Business, Monterey Institute of International Studies since 2001.

Trustee, SPDR Select Sector Trust; Trustee, The International University in Geneva.

Michael G. Smith
Age 64,
614 Lenox
Glen Ellyn, IL 60137

Director, Member of the Audit and Nominating Committees

Since 2007

Retired since 1999. Formerly, Managing Director, Corporate and Institutional Client Group, Central Region, Merrill Lynch & Co., Inc.

Director, Ivy Funds, Inc.; Director, Northwestern Mutual Series Fund, Inc.; Executive Board Director, Cox Business School, Southern Methodist University.

TDX Independence Funds, Inc.

OFFICERS AND DIRECTORS (CONTINUED)

Name, Address,
and Age

Position(s)
Held with
Fund

Term of
Office and
Length of
Time Served

Principal
Occupation(s)
During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Director

Other Directorships
held by Director

Interested Director/Officers*:

Anthony F. Dudzinski
Age 44,
420 Lexington Avenue
New York, New York 10170

Director and Chairman of the Board and Chief Operating Officer

Since 2006

President, XShares Group LLC since 2006; Chief Executive Officer and Chief Operating Officer of XShares Advisors LLC since 2006; Vice-President, HealthShares(TM) Inc. since 2006; CEO US Euro Securities from 2004 to 2006; President and COO of M. H. Meyerson & Co., Inc. from 2000 to 2003.

N/A

David M. Kelley
Age 47,
1 Harborside
Financial Center, Plaza 4A Jersey City, NJ 07311

President and Chief Executive Officer

Since 2006

EVP & CIO of TD AMERITRADE Holding Corporation since 2006; Chief Technology Officer, Corporate Division, Merrill Lynch & Co., Inc. from 2002 to 2005.

N/A

David W. Jaffin
Age 54,
420 Lexington Avenue
New York, New York 10170

Treasurer and Secretary

Since 2006

Chief Operating Officer, XShares Group LLC since 2006; Chief Financial Officer, XShares Advisors LLC since 2006; Secretary and Treasurer, HealthShares(TM) Inc. since 2006; President, Technical Coatings Laboratory from 2000 to 2005.

N/A

* Officers/Director of the Company are "interested persons" as defined in the 1940 Act.

The Fund's SAI includes additional information about the Fund's Directors and is available by calling 1-800-925-2870, or on the Company's website at www.tdxindependencefunds.com.

TDX Independence Funds, Inc.

ADDITIONAL INFORMATION

PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that the Company uses to determine how to vote proxies related to each Fund's portfolio securities, (and information on how the Funds will have voted proxies during the period ending June 30, 2008 on Form N-PX) is available without charge, upon request, (i) by calling 800-925-2870; (ii) on the Company's website at www.tdxindependencefunds.com; and (iii) on the Securities and Exchange Commission's ("SEC") website at www.sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE

The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC's website at www.sec.gov and are available by calling the Company at 800-925-2870. You can also obtain copies of Form N-Q by (i) visiting the SEC's Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC's Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfo@sec.gov.

Information about each Fund's portfolio holdings is available daily at www.tdxindependencefunds.com.

This Page is Intentionally Left Blank

This material must be accompanied or preceded by a prospectus.

An Investor should consider the fund's investment objective, risks, charges and expenses carefully before investing.

There are risks involved with investing in exchange-traded funds ("ETFs") including possible loss of money. TDX Independence ETFs are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. Losses from short sales may be unlimited, and losses from purchases on margin may exceed original investment.

Investments in small and medium capitalization companies may be subject to higher volatility than larger, more established companies.

Investments in foreign securities will be subject to certain risks not associated with domestic securities, such as currency fluctuations, and changes in political and economic conditions.

Investments in fixed income securities will be subject to certain risks as well. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the credit risk of individual issuers. Generally, fixed income securities will decrease in value if interest rates rise, and the volatility of lower rated securities is even greater than that of higher rated securities.

There is no assurance that the investment process will consistently lead to successful investing. Diversification does not eliminate the risk of experiencing investment losses.

The prospectus is not an offer to buy or sell the portfolio shares, nor is the fund soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.

For this and more complete information about the fund call 800.925.2870 or visit the website www.tdxindependencefunds.com for a prospectus. Please read the prospectus carefully before investing.

TDX Independence ETFs are distributed by ALPS Distributors, Inc., member of FINRA, which is not affiliated with TDX Independence Funds, Inc. or any other affiliate.

TDX Independence Funds, Inc.

INVESTMENT ADVISOR

XShares Advisors LLC
420 Lexington Avenue
Suite 2550
New York, NY 10170

INVESTMENT SUB-ADVISORS

Amerivest Investment Management, LLC
1005 North Ameritrade Place
Bellevue, NE 68005

Mellon Capital Management Corporation
50 Fremont Street
Suite 3900
San Francisco, CA 94105

ADMINISTRATOR, CUSTODIAN,
FUND ACCOUNTANT & TRANSFER AGENT

The Bank of New York
101 Barclay Street
New York, NY 10286

DISTRIBUTOR

ALPS Distributors, Inc.
1290 Broadway
Suite 1100
Denver, CO 80203

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Eisner LLP
750 Third Avenue
New York, NY 10017

LEGAL COUNSEL

Paul, Hastings, Janofsky, Walker LLP
75 East 55th Street
New York, NY 10022

TDX Independence Exchange-Traded Funds

Item 2. Code of Ethics.

(a) The Fund has adopted a code of ethics (the “Code of Ethics”) that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This Code is filed as an exhibit to this report on Form N-CSR under item (a)(1).

Item 3. Audit Committee Financial Expert.

R. Charles Tschampion is the designated financial expert on the Audit Committee of TDX Independence Funds, Inc. With respect to TDX Independence Funds, Inc., R. Charles Tschampion is not an “interested person” as such terms are defined by
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19).

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees. The aggregate fees for the Registrant’s fiscal year ended May 31, 2008 for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements and examinations of securities conducted pursuant to rule 17f-2of the 1940 Act were $90,000.

(b) Audit-Related Fees. The aggregate fees billed for the Registrant’s fiscal year ended May 31, 2008 for professional services rendered by the principal accountant for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported above in Item 4(a) were $0.

(c) Tax Fees. The aggregate fees billed for the Registrant’s fiscal year ended May 31, 2008 for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were approximately $9,700.

(d) All Other Fees. All other aggregate fees billed for the Registrant’s fiscal year ended May 31, 2008 were $0.

(e) Audit Committee Pre-Approval Policies and Procedures. In accordance with Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the audit and permissible non-audit services of the Registrant. All of the services described in paragraphs (b) through (d) above were approved by the Audit Committee in accordance with paragraph (c) (7) (i) (c) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Not applicable.

(h) The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant which were not pre-approved (not requiring pre-approval) is compatible with maintaining the principal accountant’s independence.

Items 5. Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Ernest J. Scalberg, Michael G. Smith and R. Charles Tschampion.

Item 6. Schedule of Investments.

The Schedules of Investments are 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.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Directors that would require disclosure herein.

Item 11. Controls and Procedures.

a) Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3-(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized and reported on a timely basis.

b) There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of Ethics

(a)(2) Certifications of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT.

(b) Certifications of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) TDX Independence Funds, Inc.

By:	/s/ David M. Kelley

Name:		David M. Kelley

Title:		President and Chief Executive Officer

Date:		July 28, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ David M. Kelley

Name:		David M. Kelley

Title:		President and Chief Executive Officer

Date:		July 28, 2008

By:	/s/ David W. Jaffin

Name:		David W. Jaffin

Title:		Chief Financial Officer, Secretary and Treasurer

Date:		July 28, 2008