Rydex Energy Fund (RYEIX) N-CSRS Certified semi-annual shareholder report (management investment company)

SEPTEMBER 30,  2008

RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

BENCHMARK FUNDS

NOVA FUND

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

S&P 500 FUND

HIGH YIELD STRATEGY FUND

INVERSE S&P 500 STRATEGY FUND

INVERSE HIGH YIELD STRATEGY FUND

NASDAQ-100^®  FUND

EUROPE 1.25x STRATEGY FUND

(Formerly, OTC Fund)

JAPAN 2x STRATEGY FUND

INVERSE NASDAQ-100^®  STRATEGY FUND

(Formerly, Inverse OTC Strategy Fund)

SMALL-CAP VALUE FUND

MID-CAP 1.5x STRATEGY FUND

MID-CAP VALUE FUND

INVERSE MID-CAP STRATEGY FUND

LARGE-CAP VALUE FUND

RUSSELL 2000^®  1.5x STRATEGY FUND

SMALL-CAP GROWTH FUND

RUSSELL 2000^®  FUND

MID-CAP GROWTH FUND

INVERSE RUSSELL 2000^®  STRATEGY FUND

LARGE-CAP GROWTH FUND

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

U.S. GOVERNMENT MONEY MARKET FUND

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TABLE OF CONTENTS

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2

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108

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112

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116

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149

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150

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

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1

LETTER TO OUR SHAREHOLDERS

DEAR SHAREHOLDER:

Most economic and market surveys tend to focus on more recent events because those that occurred

earlier seem distant and less important. That dynamic was never so evident as in the April-to-September

period, when events of just the previous three weeks completely overwhelmed everything that came

before. In an incredibly short period of time, the entire global financial system seized up as the lubricant

of any economy—bank lending—came to a complete halt. The resulting crash in global stock markets that

began in September continued well into October.

In less than a month, the shape of the entire financial system was changed forever. The Wall Street model

of large, aggressive, risk-taking investment banks was completely swept aside, as financial titans such as

Merrill Lynch, Morgan Stanley, Goldman Sachs and Lehman Brothers collapsed, merged with, or were

reborn as commercial banks. It’s clear now that the decision by the U.S. Government to let Lehman

Brothers fail was the catalytic event, as the dramatic failure of an institution that weathered the Great

Depression and two world wars, laid bare the failings of the traditional investment banking model.

Financial dominos tumbled as a wave of commercial bank failures—the most since the savings and loan

crisis of the 1990s—unfolded in the third quarter, culminating with the collapse of Washington Mutual, the

largest bank failure in U.S. history.

The other huge and profound shift was the nationalization of the global financial system. Several events

point to a nearly total takeover of the global financial system: the takeover of Fannie Mae and Freddie

Mac, AIG and Washington Mutual; the seizure of IndyMac; the forced merger of Wachovia; and the

massive capital infusion and government guarantee of nearly every financial instrument available (both

here and in Europe).

In this history-making period, government at all levels moved with unprecedented speed, scope and

coordination to save the financial system, and with it, the global economy. In the United States, this

culminated with the U.S. Treasury’s $700 billion bail-out plan that will essentially buy up all the bad

mortgage assets clogging the financial system.

Rejection of that plan by the House of Representatives in late September sent the markets into a tailspin,

with the Dow suffering its largest point drop in history, while sending the index to three-year lows. Over the

past six months, the Dow Jones Industrial^SM Average and the S&P 500^® Index each lost more than 10% of

their value, with virtually all of those declines coming in the last two weeks of September. T-Bill yields fell to

near zero and interest rates on longer-dated Treasuries fell to decade lows in the market’s massive flight to

safety.

It’s not all doom and gloom, however. This volatile market environment has burst the commodity bubble

and has resulted in a huge slowdown in global inflation. This helps the emerging markets whose

economies have been pummeled by the rise in food and energy costs. Slowing inflation has also ushered

in a period of unprecedented dollar strength, which gives the Federal Reserve additional room to ease.

Interest rates could hardly be lower and stocks are cheaper than they have been in some time. With the

massive amounts of liquidity pumped into the system, stocks could rally sharply in the months ahead.

Having gone through multiple false bottoms so far this year, the question that still remains is: Can any rally

be sustained? The answer to that question is fairly straightforward. First, the allocation of credit in bond

and money markets needs to resume. Simply put: A stock market recovery is not possible without it. As I

write this, there is definite improvement on that front, but it remains slow and sporadic. Also, the process

of de-leveraging (that is, selling assets accumulated during boom times) will be with us for a while. All of

this is occurring during a period where global economic growth is downshifting rapidly. While this does

not preclude any stock market rallies, it may make them temporary. Astute stock selection, the use of

rotational strategies, exposure to currency movements, the implementation of long/short strategies and a

focus on quality—above all else—are the keys to investment success in difficult and uncharted terrain.

We appreciate the trust you have placed in our firm’s quality and integrity by investing with

Rydex Investments.

Sincerely,

David C. Reilly, CFA

Director of Portfolio Strategy

2

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Rydex Funds described in this report are benchmarked daily to leveraged or inverse

leveraged versions of published indices. To properly evaluate the performance of these funds, it is

essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line

with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire

period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to

outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of

an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a

6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value

(“NAV”) increases from $10.00 to $10.90 for a gain of 9.0%–in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls

9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for

the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into

account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the

fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the

table below.

Index

Index

Fund

Fund

Level

Performance

Expectation

Fund NAV

Performance

Assessment

Start

100

$10.00

Day 1

106

6.0%

9.0%

$10.90

9.0%

In line

Day 2

99

-6.6%

-9.9%

$

9.82

-9.9%

In line

Cumulative

-1.0%

-1.5%

-1.8%

-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or

judgments about fund performance given only the returns of the unleveraged index.

In general, any change in direction in an index will produce compounding that seems to work against an

investor. Were the index to move in the same direction (either up or down) for two or more periods in a

row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly

beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less

leverage will generally produce results that are more in line with expectations. In addition, periods of high

volatility in an underlying index will also cause the effects of compounding to be more pronounced, while

lower volatility will produce a more muted effect.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

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3

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

All mutual funds have operating expenses and it is important for our shareholders to understand the

impact of costs on their investments. Shareholders of a Fund incur two types of costs: (i) transaction costs,

including sales charges (loads) on purchase payments, reinvested dividends, or other distributions;

redemption fees; and exchange fees; and (ii) ongoing costs, including management fees, administrative

services, and shareholder reports, among others. These ongoing costs, or operating expenses, are

deducted from a fund’s gross income and reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets, which is known as the

expense ratio. The following examples are intended to help investors understand the ongoing costs (in

dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other

mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period

and held for the entire six-month period beginning March 31, 2008 and ending September 30, 2008.

The following tables illustrate a Fund’s costs in two ways:

Table 1. Based on actual Fund return. This section helps investors estimate the actual expenses paid

over the period. The “Ending Account Value” shown is derived from the Fund’s actual return, and the

fourth column shows the dollar amount that would have been paid by an investor who started with

$1,000 in the Fund. Investors may use the information here, together with the amount invested, to

estimate the expenses paid over the period. Simply divide the Fund’s 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

provided under the heading “Expenses Paid During Period.”

Table 2. Based on hypothetical 5% return. This section is intended to help investors compare a Fund’s

cost with those of other mutual funds. The table provides information about hypothetical account

values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of

return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account

values and expenses may not be used to estimate the actual ending account balance or expenses paid

during the period. The example is useful in making comparisons because the U.S. Securities and

Exchange Commission (the “SEC”) requires all mutual funds to calculate expenses based on the 5%

return. Investors can assess a Fund’s costs by comparing this hypothetical example with the

hypothetical examples that appear in shareholder reports of other funds.

Certain retirement plans such as IRA, SEP, Roth IRA and 403(b) accounts are charged an annual $15

maintenance fee. Upon liquidating a retirement account, a $15 account-closing fee will be taken from the

proceeds of the redemption.

The calculations illustrated above assume no shares were bought or sold during the period. Actual

costs may have been higher or lower, depending on the amount of investment and the timing of any

purchases or redemptions.

Note that the expenses shown in the table are meant to highlight and help compare ongoing costs only

and do not reflect any transactional costs which may be incurred by a Fund.

More information about a Fund’s expenses, including annual expense ratios for the past five years, can be

found in the Financial Highlights section of this report. For additional information on operating expenses

and other shareholder costs, please refer to the appropriate Fund prospectus.

4

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

Beginning

Ending

Expenses

Expense

Account Value

Account Value

Paid During

Ratio†

March 31, 2008

September 30, 2008

Period*

Table 1. Based on actual Fund return

Nova Fund

Investor Class

1.28%

$1,000.00

$

823.20

$

5.86

Advisor Class

1.78%

1,000.00

821.20

8.13

A-Class

1.54%

1,000.00

821.90

7.02

C-Class

2.28%

1,000.00

819.00

10.41

S&P 500 Fund

A-Class

1.52%

1,000.00

889.70

7.19

C-Class

2.27%

1,000.00

886.10

10.75

H-Class

1.53%

1,000.00

889.60

7.23

Inverse S&P 500 Strategy Fund

Investor Class

1.42%

1,000.00

1,097.80

7.49

Advisor Class

1.93%

1,000.00

1,094.60

10.12

A-Class

1.67%

1,000.00

1,096.40

8.79

C-Class

2.43%

1,000.00

1,092.40

12.73

NASDAQ-100^® Fund

Investor Class

1.28%

1,000.00

895.90

6.10

Advisor Class

1.78%

1,000.00

894.00

8.47

A-Class

1.54%

1,000.00

894.30

7.29

C-Class

2.28%

1,000.00

891.30

10.83

Inverse NASDAQ-100^® Strategy Fund

Investor Class

1.46%

1,000.00

1,077.10

7.58

Advisor Class

1.96%

1,000.00

1,074.10

10.18

A-Class

1.71%

1,000.00

1,075.80

8.88

C-Class

2.46%

1,000.00

1,071.80

12.76

Mid-Cap 1.5x Strategy Fund

A-Class

1.67%

1,000.00

872.80

7.83

C-Class

2.42%

1,000.00

869.50

11.33

H-Class

1.67%

1,000.00

873.10

7.83

Inverse Mid-Cap Strategy Fund

A-Class

1.67%

1,000.00

1,065.00

8.64

C-Class

2.42%

1,000.00

1,060.60

12.49

H-Class

1.67%

1,000.00

1,064.50

8.63

Russell 2000^® 1.5x Strategy Fund

A-Class

1.69%

1,000.00

952.80

8.29

C-Class

2.44%

1,000.00

949.10

11.94

H-Class

1.69%

1,000.00

952.50

8.29

Russell 2000^® Fund

A-Class

1.54%

1,000.00

983.00

7.67

C-Class

2.29%

1,000.00

979.00

11.38

H-Class

1.54%

1,000.00

983.00

7.67

Inverse Russell 2000^® Strategy Fund

A-Class

2.23%

1,000.00

962.10

10.95

C-Class

2.97%

1,000.00

959.00

14.59

H-Class

2.22%

1,000.00

962.40

10.92

Government Long Bond 1.2x Strategy Fund

Investor Class

0.97%

1,000.00

1,012.00

4.88

Advisor Class

1.47%

1,000.00

1,010.30

7.40

A-Class

1.22%

1,000.00

1,011.60

6.15

C-Class

1.97%

1,000.00

1,007.00

9.91

Inverse Government Long Bond Strategy Fund

Investor Class

4.00%

1,000.00

1,000.00

20.07

Advisor Class

4.51%

1,000.00

998.80

22.58

A-Class

4.16%

1,000.00

998.80

20.83

C-Class

4.97%

1,000.00

995.50

24.88

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

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5

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

Beginning

Ending

Expenses

Expense

Account Value

Account Value

Paid During

Ratio†

March 31, 2008

September 30, 2008

Period*

High Yield Strategy Fund

A-Class

1.55%

$1,000.00

$

993.80

$

7.77

C-Class

2.31%

1,000.00

990.00

11.54

H-Class

1.58%

1,000.00

993.40

7.91

Inverse High Yield Strategy Fund

A-Class

1.52%

1,000.00

1,009.60

7.64

C-Class

2.27%

1,000.00

1,006.10

11.40

H-Class

1.52%

1,000.00

1,009.90

7.65

Europe 1.25x Strategy Fund

A-Class

1.67%

1,000.00

759.10

7.35

C-Class

2.42%

1,000.00

756.20

10.65

H-Class

1.71%

1,000.00

759.20

7.53

Japan 2x Strategy Fund

A-Class

1.52%

1,000.00

724.10

6.56

C-Class

2.27%

1,000.00

722.30

9.78

H-Class

1.52%

1,000.00

724.10

6.56

Small-Cap Value Fund

A-Class

1.52%

1,000.00

930.70

7.37

C-Class

2.27%

1,000.00

927.30

10.98

H-Class

1.52%

1,000.00

930.60

7.36

Mid-Cap Value Fund

A-Class

1.52%

1,000.00

926.00

7.34

C-Class

2.27%

1,000.00

922.50

10.95

H-Class

1.52%

1,000.00

926.30

7.33

Large-Cap Value Fund

A-Class

1.52%

1,000.00

842.50

7.02

C-Class

2.27%

1,000.00

839.60

10.46

H-Class

1.52%

1,000.00

843.00

7.01

Small-Cap Growth Fund

A-Class

1.52%

1,000.00

990.90

7.60

C-Class

2.28%

1,000.00

986.90

11.35

H-Class

1.56%

1,000.00

991.30

7.80

Mid-Cap Growth Fund

A-Class

1.57%

1,000.00

948.60

7.66

C-Class

2.31%

1,000.00

945.70

11.29

H-Class

1.54%

1,000.00

948.70

7.55

Large-Cap Growth Fund

A-Class

1.52%

1,000.00

882.90

7.18

C-Class

2.27%

1,000.00

879.70

10.70

H-Class

1.52%

1,000.00

882.90

7.18

U.S. Government Money Market Fund

Investor Class

0.92%

1,000.00

1,007.10

4.65

Advisor Class

1.42%

1,000.00

1,004.60

7.15

A-Class

1.17%

1,000.00

1,005.90

5.90

C-Class

1.92%

1,000.00

1,002.10

9.66

6

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (continued)

Beginning

Ending

Expenses

Expense

Account Value

Account Value

Paid During

Ratio†

March 31, 2008

September 30, 2008

Period*

Table 2. Based on hypothetical 5% return (before expenses)

Nova Fund

Investor Class

1.28%

$1,000.00

$1,018.65

$

6.48

Advisor Class

1.78%

1,000.00

1,016.14

9.00

A-Class

1.54%

1,000.00

1,017.35

7.79

C-Class

2.28%

1,000.00

1,013.64

11.51

S&P 500 Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.27%

1,000.00

1,013.69

11.46

H-Class

1.53%

1,000.00

1,017.40

7.74

Inverse S&P 500 Strategy Fund

Investor Class

1.42%

1,000.00

1,017.95

7.18

Advisor Class

1.93%

1,000.00

1,015.39

9.75

A-Class

1.67%

1,000.00

1,016.70

8.44

C-Class

2.43%

1,000.00

1,012.89

12.26

NASDAQ-100^® Fund

Investor Class

1.28%

1,000.00

1,018.65

6.48

Advisor Class

1.78%

1,000.00

1,016.14

9.00

A-Class

1.54%

1,000.00

1,017.35

7.79

C-Class

2.28%

1,000.00

1,013.64

11.51

Inverse NASDAQ-100^® Strategy Fund

Investor Class

1.46%

1,000.00

1,017.75

7.38

Advisor Class

1.96%

1,000.00

1,015.24

9.90

A-Class

1.71%

1,000.00

1,016.50

8.64

C-Class

2.46%

1,000.00

1,012.73

12.41

Mid-Cap 1.5x Strategy Fund

A-Class

1.67%

1,000.00

1,016.70

8.44

C-Class

2.42%

1,000.00

1,012.94

12.21

H-Class

1.67%

1,000.00

1,016.70

8.44

Inverse Mid-Cap Strategy Fund

A-Class

1.67%

1,000.00

1,016.70

8.44

C-Class

2.42%

1,000.00

1,012.94

12.21

H-Class

1.67%

1,000.00

1,016.70

8.44

Russell 2000^® 1.5x Strategy Fund

A-Class

1.69%

1,000.00

1,016.60

8.54

C-Class

2.44%

1,000.00

1,012.84

12.31

H-Class

1.69%

1,000.00

1,016.60

8.54

Russell 2000^® Fund

A-Class

1.54%

1,000.00

1,017.35

7.79

C-Class

2.29%

1,000.00

1,013.59

11.56

H-Class

1.54%

1,000.00

1,017.35

7.79

Inverse Russell 2000^® Strategy Fund

A-Class

2.23%

1,000.00

1,013.89

11.26

C-Class

2.97%

1,000.00

1,010.18

14.97

H-Class

2.22%

1,000.00

1,013.94

11.21

Government Long Bond 1.2x Strategy Fund

Investor Class

0.97%

1,000.00

1,020.21

4.91

Advisor Class

1.47%

1,000.00

1,017.70

7.44

A-Class

1.22%

1,000.00

1,018.95

6.17

C-Class

1.97%

1,000.00

1,015.19

9.95

Inverse Government Long Bond Strategy Fund

Investor Class

4.00%

1,000.00

1,005.01

20.11

Advisor Class

4.51%

1,000.00

1,002.46

22.64

A-Class

4.16%

1,000.00

1,004.21

20.90

C-Class

4.97%

1,000.00

1,000.15

24.92

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

7

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited) (concluded)

Beginning

Ending

Expenses

Expense

Account Value

Account Value

Paid During

Ratio†

March 31, 2008

September 30, 2008

Period*

High Yield Strategy Fund

A-Class

1.55%

$1,000.00

$1,017.30

$

7.84

C-Class

2.31%

1,000.00

1,013.49

11.66

H-Class

1.58%

1,000.00

1,017.15

7.99

Inverse High Yield Strategy Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.27%

1,000.00

1,013.69

11.46

H-Class

1.52%

1,000.00

1,017.45

7.69

Europe 1.25x Strategy Fund

A-Class

1.67%

1,000.00

1,016.70

8.44

C-Class

2.42%

1,000.00

1,012.94

12.21

H-Class

1.71%

1,000.00

1,016.50

8.64

Japan 2x Strategy Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.27%

1,000.00

1,013.69

11.46

H-Class

1.52%

1,000.00

1,017.45

7.69

Small-Cap Value Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.27%

1,000.00

1,013.69

11.46

H-Class

1.52%

1,000.00

1,017.45

7.69

Mid-Cap Value Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.27%

1,000.00

1,013.69

11.46

H-Class

1.52%

1,000.00

1,017.45

7.69

Large-Cap Value Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.27%

1,000.00

1,013.69

11.46

H-Class

1.52%

1,000.00

1,017.45

7.69

Small-Cap Growth Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.28%

1,000.00

1,013.64

11.51

H-Class

1.56%

1,000.00

1,017.25

7.89

Mid-Cap Growth Fund

A-Class

1.57%

1,000.00

1,017.20

7.94

C-Class

2.31%

1,000.00

1,013.49

11.66

H-Class

1.54%

1,000.00

1,017.35

7.79

Large-Cap Growth Fund

A-Class

1.52%

1,000.00

1,017.45

7.69

C-Class

2.27%

1,000.00

1,013.69

11.46

H-Class

1.52%

1,000.00

1,017.45

7.69

U.S. Government Money Market Fund

Investor Class

0.92%

1,000.00

1,020.46

4.66

Advisor Class

1.42%

1,000.00

1,017.95

7.18

A-Class

1.17%

1,000.00

1,019.20

5.92

C-Class

1.92%

1,000.00

1,015.44

9.70

* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by the

number of days in the most recent fiscal half-year, then divided by 365.

† This ratio represents annualized Total Expenses, which include interest and dividend expense from securities sold short. Excluding short

interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 2.60%, 2.60%, 2.50%, and

2.57% lower for the Investor Class, Advisor Class, A-Class and C-Class, respectively. Excluding short dividend expense, the operating expense

ratio of the Inverse Russell 2000^® Fund would be 0.53% lower for each class of the Fund.

8

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited)

NOVA FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s

current benchmark is 150% of the performance of the S&P 500 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

Investor Class

July 12, 1993

150%

Other

Advisor Class

October 15, 1998

Consumer Discretionary

A-Class

Industrials

Utilities

March 31, 2004

Consumer Staples

Materials

C-Class

March 14, 2001

Health Care

Telecommunication Services

Ten Largest Holdings (% of Total Net Assets)

100%

Energy

Exxon Mobil Corp.

3.4%

Financials

Consumer Discretionary

General Electric Co.

2.1%

Information Technology

Industrials

Microsoft Corp.

1.8%

Consumer Staples

Procter & Gamble Co.

1.8%

50%

Health Care

Johnson & Johnson, Inc.

1.6%

S&P 500 Index

Energy

JPMorgan Chase & Co.

1.4%

Mini Futures Contracts

Financials

Chevron Corp.

1.4%

Information Technology

AT&T, Inc.

1.4%

0%

International Business Machines Corp.

1.3%

Nova Fund

S&P 500 Index

Bank of America Corp.

1.3%

Top Ten Total

17.5%

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

“Ten Largest Holdings” exclude any temporary

cash or derivative investments.

S&P 500 FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s

current benchmark is the S&P 500 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

May 31, 2006

100%

Telecommunication Services

Other

Materials

C-Class

May 31, 2006

Utilities

Consumer Discretionary

H-Class

May 31, 2006

Consumer Discretionary

Industrials

Industrials

Ten Largest Holdings (% of Total Net Assets)

75%

Consumer Staples

Exxon Mobil Corp.

2.8%

Health Care

Consumer Staples

General Electric Co.

1.7%

Energy

Health Care

Procter & Gamble Co.

1.5%

50%

Financials

Microsoft Corp.

1.4%

Energy

Johnson & Johnson, Inc.

1.3%

Information Technology

JPMorgan Chase & Co.

1.2%

25%

Financials

Chevron Corp.

1.2%

S&P 500 Index

AT&T, Inc.

1.1%

Mini Futures Contracts

Information Technology

Bank of America Corp.

1.1%

0%

International Business Machines Corp.

1.1%

S&P 500 Fund

S&P 500 Index

Top Ten Total

14.4%

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

“Ten Largest Holdings” exclude any temporary

any temporary cash investments.

cash or derivative investments.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

9

FUND PROFILES (Unaudited) (continued)

INVERSE S&P 500 STRATEGY FUND

OBJECTIVE: To provide investment results that will inversely correlate to the performance of the S&P 500 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

Investor Class

January 7, 1994

Utilities

Advisor Class

August 5, 1998

Materials

Telecommunications Services

A-Class

March 31, 2004

100%

C-Class

March 15, 2001

Consumer Discretionary

80%

Industrials

60%

Consumer Staples

The Fund invests principally in derivative investments

Health Care

such as equity index swap agreements, futures

40%

Energy

contracts, and options on index futures.

Financials

20%

Information Technology

0%

-20%

-40%

S&P 500 Index

Mini Futures Contracts

-60%

Short Sales

-80%

-100%

Inverse S&P 500

S&P 500 Index

Strategy Fund

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

NASDAQ-100^® FUND

OBJECTIVE: To provide investment results that correspond to a benchmark for over-the-counter securities. The Fund’s current

benchmark is the NASDAQ-100 Index^® .

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

Investor Class

February 14, 1994

NASDAQ-100 Index

Mini Futures Contracts

Advisor Class

September 22, 1998

100%

Other

Other

A-Class

March 31, 2004

Industrials

Industrials

C-Class

March 26, 2001

Consumer Discretionary

Consumer Discretionary

Ten Largest Holdings (% of Total Net Assets)

75%

9.9%

Health Care

Health Care

Apple, Inc.

Qualcomm, Inc.

6.0%

Microsoft Corp.

5.9%

50%

Google, Inc. — Class A

4.1%

Cisco Systems, Inc.

3.4%

Information Technology

Information Technology

Oracle Corp.

3.1%

25%

Gilead Sciences, Inc.

2.9%

Research In Motion Ltd.

2.7%

Intel Corp.

2.6%

Amgen, Inc.

2.1%

0%

NASDAQ-100^®  Fund

NASDAQ-100 Index

Top Ten Total

42.7%

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

“Ten Largest Holdings” exclude any temporary

cash or derivative investments.

any temporary cash investments.

10

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (continued)

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current

benchmark is the inverse of the performance of the NASDAQ-100 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

Investor Class

September 3, 1998

Other

100%

Advisor Class

August 1, 2003

Industrials

Consumer Discretionary

A-Class

March 31, 2004

80%

Health Care

C-Class

March 7, 2001

60%

40%

The Fund invests principally in derivative investments

Information Technology

such as equity index swap agreements, futures

20%

contracts, and options on index futures.

0%

-20%

-40%

NASDAQ-100 Index

Mini Futures Contracts

-60%

Short Sales

-80%

-100%

Inverse NASDAQ-100^®

NASDAQ-100 Index

Strategy Fund

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

MID-CAP 1.5x STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for mid-cap securities.

The Fund’s current benchmark is the S&P MidCap 400^® Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

March 31, 2004

150%

Other

C-Class

August 20, 2001

Materials

Energy

H-Class

August 16, 2001

Utilities

Health Care

Ten Largest Holdings (% of Total Net Assets)

Information Technology

Other

100%

FMC Technologies, Inc.

0.5%

Consumer Discretionary

Materials

New York Community Bancorp, Inc.

0.5%

Industrials

Energy

Utilities

Cleveland-Cliffs, Inc.

0.5%

Financials

Health Care

DENTSPLY International, Inc.

0.5%

Information Technology

Covance, Inc.

0.5%

50%

Health Care REIT, Inc.

0.5%

Consumer Discretionary

Flir Systems, Inc.

0.5%

S&P MidCap 400 Index

Mini Futures Contracts

Industrials

Everest Re Group Ltd.

0.5%

Financials

MDU Resources Group, Inc.

0.5%

0%

Cephalon, Inc.

0.5%

Mid-Cap 1.5x Strategy Fund

S&P MidCap 400 Index

Top Ten Total

5.0%

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

“Ten Largest Holdings” exclude any temporary

any temporary cash investments.

cash or derivative investments.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

11

FUND PROFILES (Unaudited) (continued)

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current

benchmark is the inverse of the performance of the S&P MidCap 400 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

March 31, 2004

100%

Other

C-Class

February 20, 2004

Materials

Energy

80%

H-Class

February 20, 2004

Utilities

Health Care

60%

Information Technology

The Fund invests principally in derivative investments

40%

Consumer Discretionary

such as equity index swap agreements, futures

S&P MidCap 400 Index

Industrials

20%

contracts, and options on index futures.

Mini Futures Contracts

Short Sales

Financials

0%

-20%

-40%

S&P MidCap 400 Index

Swap Agreement

-60%

Short Sales

-80%

-100%

Inverse Mid-Cap

S&P MidCap 400 Index

Strategy Fund

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

RUSSELL 2000^® 1.5x STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark for small-cap securities.

The Fund’s current benchmark is the Russell 2000^® Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

March 31, 2004

150%

Other

C-Class

January 23, 2001

Energy

H-Class

November 1, 2000

Consumer Discretionary

Health Care

Telecommunication Services

Ten Largest Holdings (% of Total Net Assets)

Industrials

Consumer Staples

Utilities

Ralcorp Holdings, Inc.

0.3%

100%

Information Technology

Alexion Pharmaceuticals, Inc.

0.2%

Financials

Materials

Energy

Myriad Genetics, Inc.

0.2%

Consumer Discretionary

OSI Pharmaceuticals, Inc.

0.2%

Russell 2000 Index

Swap Agreement

Health Care

Senior Housing Properties Trust

0.2%

50%

Industrials

Foundry Networks, Inc.

0.2%

Energy Conversion Devices, Inc.

0.2%

Information Technology

Russell 2000 Index

Realty Income Corp.

0.2%

Mini Futures Contracts

ITC Holdings Corp.

0.2%

Financials

0%

Wabtec Corp.

0.2%

Russell 2000^® 1.5x

Russell 2000 Index

Top Ten Total

2.1%

Strategy Fund

“Ten Largest Holdings” exclude any temporary

cash or derivative investments.

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

12

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (continued)

RUSSELL 2000^® FUND

OBJECTIVE: To provide investment results that match the performance of a specific benchmark on a daily basis. The Fund’s

current benchmark is the Russell 2000 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

May 31, 2006

Russell 2000Index

Swap Agreement

Telecommunication Services

C-Class

May 31, 2006

100%

Other

Consumer Staples

H-Class

May 31, 2006

Energy

Utilities

Materials

Ten Largest Holdings (% of Total Net Assets)

Consumer Discretionary

Energy

80%

Health Care

Ralcorp Holdings, Inc.

0.2%

Consumer Discretionary

Industrials

Alexion Pharmaceuticals, Inc.

0.1%

Information Technology

Health Care

Myriad Genetics, Inc.

0.1%

60%

OSI Pharmaceuticals, Inc.

0.1%

Financials

Industrials

Senior Housing Properties Trust

0.1%

40%

Longs Drug Stores Corp.

0.1%

Foundry Networks, Inc.

0.1%

Information Technology

Russell 2000 Index

Waste Connections, Inc.

0.1%

20%

Mini Futures Contracts

Energy Conversion Devices, Inc.

0.1%

Financials

Realty Income Corp.

0.1%

0%

Top Ten Total

1.1%

Russell 2000^®  Fund

Russell 2000 Index

“Ten Largest Holdings” exclude any temporary

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

cash or derivative investments.

any temporary cash investments.

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: To provide investment results that will match the performance of a specific benchmark. The Fund’s current

benchmark is the inverse of the performance of the Russell 2000 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

March 31, 2004

Telecommunication Services

100%

Consumer Staples

C-Class

February 20, 2004

Utilities

Energy

80%

Materials

H-Class

February 20, 2004

Consumer Discretionary

60%

Health Care

The Fund invests principally in short sales of

Industrials

40%

securities and derivative investments such as equity

Information Technology

20%

index swap agreements, futures contracts, and

Financials

options on index futures.

0%

-20%

Russell 2000 Index

Mini Futures Contracts

Short Sales

-40%

-60%

Russell 2000 Index Swap

-80%

Agreement Short Sales

-100%

Inverse Russell 2000^®

Russell 2000 Index

Strategy Fund

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

13

FUND PROFILES (Unaudited) (continued)

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: To provide investment results that correspond to a benchmark for U.S. Government securities. The Fund’s current

benchmark is 120% of the price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the

longest maturity, which is currently 30 years.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

Investor Class

January 3, 1994

140%

Advisor Class

August 1, 2003

A-Class

March 31, 2004

120%

U.S. Treasury Bond

C-Class

May 2, 2001

100%

Futures Contracts

The Fund invests principally in U.S. Government

80%

securities and in derivative investments such as

futures and options contracts.

60%

U.S. Treasury Obligations

40%

20%

0%

Government Long Bond 1.2x Strategy Fund

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: To provide total returns that will inversely correlate to the price movements of a benchmark for U.S. Treasury debt

instruments or futures contracts on a specified debt instrument. The Fund’s current benchmark is the inverse of the daily price

movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is

currently 30 years.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

Investor Class

March 3, 1995

0%

Advisor Class

August 1, 2003

A-Class

March 31, 2004

-20%

C-Class

March 28, 2001

-40%

U.S. Treasury Bond

The Fund invests principally in short sales and

Futures Contracts

derivative investments such as futures contracts,

-60%

Short Sales

and options on index futures.

-80%

-100%

Inverse Government Long Bond Strategy Fund

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

14

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (continued)

HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate to the performance of the high yield bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

April 16, 2007

100%

Other

C-Class

April 16, 2007

CAA Rated Bonds

H-Class

April 16, 2007

75%

The Fund invests principally in derivative investments

such as high yield credit default swap agreements

BA Rated Bonds

and futures contracts.

50%

High Yield Index Credit Default

Swap Agreement Protection Sold

25%

B Rated Bonds

0%

High Yield Strategy Fund

Barclays Capital U.S.

Corporate High Yield Index

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

INVERSE HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correlate to the performance of the high yield

bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

H-Class

April 16, 2007

100%

Other

CAA Rated Bonds

A-Class

April 16, 2007

80%

C-Class

April 16, 2007

60%

BA Rated Bonds

The Fund invests principally in derivative investments

40%

such as high yield credit default swap agreements

20%

B Rated Bonds

and futures contracts.

0%

-20%

-40%

High Yield Index Credit Default

Swap Agreement

-60%

Protection Purchased

-80%

-100%

Inverse High Yield

Barclays Capital U.S.

Strategy Fund

Corporate High Yield Index

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

15

FUND PROFILES (Unaudited) (continued)

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current

benchmark is the Dow Jones STOXX^® 50 Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

March 31, 2004

125%

Other

C-Class

May 10, 2001

H-Class

May 8, 2000

Energy

100%

Telecommunication Services

Other

Ten Largest Holdings (% of Total Net Assets)

Health Care

Industrial

Utilities

HSBC Holdings PLC — SP ADR

3.0%

Financials

Novartis AG — SP ADR

Basic Materials

3.0%

75%

Communications

GlaxoSmithKline PLC — SP ADR

2.7%

Energy

BP PLC — SP ADR

2.5%

50%

Total SA — SP ADR

2.3%

Dow Jones STOXX 50 Index

Futures Contracts

Consumer, Non-cyclical

Telefonica SA — SP ADR

2.3%

Vodafone Group PLC — SP ADR

2.1%

25%

Sanofi-Aventis — SP ADR

1.8%

Financial

France Telecom SA — SP ADR

1.8%

Royal Dutch Shell PLC — SP ADR

1.8%

0%

Europe 1.25x

Dow Jones STOXX 50 Index

Top Ten Total

23.3%

Strategy Fund

“Ten Largest Holdings” excludes any temporary

cash or derivative investments.

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

JAPAN 2x STRATEGY FUND

OBJECTIVE:

To provide investment results that correlate to the performance of a specific benchmark. The Fund’s current

benchmark is the 200% of the fair value of the Nikkei-225 Stock Average Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

February 22, 2008

200%

C-Class

February 22, 2008

175%

H-Class

February 22, 2008

150%

The Fund invests principally in derivative investments

such as equity index swap agreements, futures

125%

contracts, and options on index futures.

Nikkei-225

Basic Materials

Other

100%

Stock Average Index

Communications

Futures Contracts

Financial

75%

Technology

Consumer, Non-cyclical

50%

Consumer, Cyclical

25%

Industrial

0%

Japan 2x Strategy

Nikkei-225

Fund

Stock Average Index

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

16

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (continued)

SMALL-CAP VALUE FUND

OBJECTIVE:

To provide investment results that match the performance of a benchmark for small-cap value securities. The

Fund’s current benchmark is the S&P SmallCap 600/Citigroup Pure Value Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

September 1, 2004

100%

Consumer Staples

Other

Consumer Staples

C-Class

February 20, 2004

Information Technology

Information Technology

H-Class

February 20, 2004

Materials

Materials

Utilities

Utilities

Ten Largest Holdings (% of Total Net Assets)

75%

Finish Line, Inc. — Class A

4.7%

Industrials

Industrials

M/I Homes, Inc.

2.0%

Wabash National Corp.

1.8%

50%

La-Z-Boy, Inc.

1.8%

Financials

Financials

Stewart Information Services Corp.

1.7%

First Bancorp Puerto Rico

1.6%

25%

Haverty Furniture Companies, Inc.

1.5%

Consumer Discretionary

Consumer Discretionary

Arkansas Best Corp.

1.5%

Gevity HR, Inc.

1.5%

0%

Jo-Ann Stores, Inc.

1.5%

Small-Cap Value Fund

S&P SmallCap 600/Citigroup

Top Ten Total

19.6%

Pure Value Index

“Ten Largest Holdings” exclude any temporary

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

cash or derivative investments.

any temporary cash investments.

MID-CAP VALUE FUND

OBJECTIVE:

To provide investment results that match the performance of the benchmark for mid-cap value securities. The

Fund’s current benchmark is the S&P MidCap 400/Citigroup Pure Value Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

September 1, 2004

100%

Consumer Staples

Consumer Staples

Health Care

Health Care

C-Class

February 20, 2004

Materials

Materials

H-Class

February 20, 2004

Information Technology

Information Technology

Ten Largest Holdings (% of Total Net Assets)

75%

Industrials

Industrials

ArvinMeritor, Inc.

3.3%

Furniture Brands International, Inc.

2.8%

Utilities

Utilities

Foot Locker, Inc.

2.4%

50%

Fidelity National Financial, Inc. — Class A

2.3%

Kelly Services, Inc. — Class A

2.3%

Consumer Discretionary

Consumer Discretionary

Ryland Group, Inc.

2.0%

25%

Imation Corp.

1.9%

Financials

Financials

Charming Shoppes, Inc.

1.9%

YRC Worldwide, Inc.

1.7%

0%

Rent-A-Center, Inc.

1.7%

Mid-Cap Value Fund

S&P MidCap 400/Citigroup

Top Ten Total

22.3%

Pure Value Index

“Ten Largest Holdings” exclude any temporary

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

cash or derivative investments.

any temporary cash investments.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

17

FUND PROFILES (Unaudited) (continued)

LARGE-CAP VALUE FUND

OBJECTIVE:

To provide investment results that match the performance of a benchmark for large-cap value securities. The

Fund’s current benchmark is the S&P 500/Citigroup Pure Value Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

September 1, 2004

Information Technology

Telecommunication Services

100%

C-Class

February 20, 2004

Other

Energy

H-Class

February 20, 2004

Consumer Staples

Consumer Staples

Health Care

Health Care

Materials

Ten Largest Holdings (% of Total Net Assets)

Materials

Industrials

75%

Industrials

D.R. Horton, Inc.

3.0%

Utilities

Utilities

KB HOME

2.9%

Lennar Corp. — Class A

2.6%

50%

Jones Apparel Group, Inc.

2.5%

Consumer Discretionary

Consumer Discretionary

Spectra Energy Corp.

2.5%

Integrys Energy Group, Inc.

2.0%

Ryder System, Inc.

1.9%

25%

Dillard's, Inc. — Class A

1.7%

Financials

Financials

NiSource, Inc.

1.6%

Tyson Foods, Inc. — Class A

1.5%

0%

Top Ten Total

22.2%

Large-Cap Value Fund

S&P 500/Citigroup

Pure Value Index

“Ten Largest Holdings” exclude any temporary

cash or derivative investments.

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

SMALL-CAP GROWTH FUND

OBJECTIVE:

To provide investment results that match the performance of a benchmark for small-cap growth securities. The

Fund’s current benchmark is the S&P SmallCap 600/Citigroup Pure Growth Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

September 1, 2004

100%

Consumer Staples

Consumer Staples

Materials

C-Class

February 20, 2004

Materials

Industrials

Energy

H-Class

February 20, 2004

Energy

Industrials

Ten Largest Holdings (% of Total Net Assets)

75%

Financials

Financials

Greenhill & Company, Inc.

1.9%

Meritage Homes Corp.

1.8%

Health Care

Health Care

LHC Group, Inc.

1.7%

50%

PetMed Express, Inc.

1.6%

Information Technology

Information Technology

j2 Global Communications, Inc.

1.6%

HealthExtras, Inc.

1.5%

25%

Quality Systems, Inc.

1.5%

Wilshire Bancorp, Inc.

1.4%

Consumer Discretionary

Consumer Discretionary

Websense, Inc.

1.4%

0%

Basic Energy Services, Inc.

1.4%

Small-Cap Growth Fund

S&P SmallCap 600/Citigroup

Top Ten Total

15.8%

Pure Growth Index

“Ten Largest Holdings” exclude any temporary

cash or derivative investments.

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

18

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

FUND PROFILES (Unaudited) (continued)

MID-CAP GROWTH FUND

OBJECTIVE:

To provide investment results that match the performance of a benchmark for mid-cap growth securities. The

Fund’s current benchmark is the S&P MidCap 400/Citigroup Pure Growth Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

September 1, 2004

100%

Consumer Staples

Consumer Staples

C-Class

February 20, 2004

Materials

Materials

Financials

Financials

H-Class

February 20, 2004

Energy

Energy

Ten Largest Holdings (% of Total Net Assets)

75%

Industrials

Industrials

Encore Acquisition Co.

2.5%

Psychiatric Solutions, Inc.

2.2%

Information Technology

Information Technology

Aeropostale, Inc.

2.1%

50%

DreamWorks Animation SKG, Inc. — Class A

2.0%

Health Care

Health Care

Digital River, Inc.

1.9%

NVR, Inc.

1.8%

25%

Cleveland-Cliffs, Inc.

1.7%

Consumer Discretionary

Consumer Discretionary

Philadelphia Consolidated Holding Corp.

1.7%

United Therapeutics Corp.

1.7%

0%

Urban Outfitters, Inc.

1.7%

Mid-Cap Growth Fund

S&P MidCap 400/Citigroup

Top Ten Total

19.3%

Pure Growth Index

“Ten Largest Holdings” exclude any temporary

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

cash or derivative investments.

any temporary cash investments.

LARGE-CAP GROWTH FUND

OBJECTIVE:

To provide investment results that match the performance of a benchmark for large-cap growth securities.

The Fund’s current benchmark is the S&P 500/Citigroup Pure Growth Index.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

A-Class

September 1, 2004

100%

Other

Utilities

Materials

C-Class

February 20, 2004

Financials

Financials

H-Class

February 20, 2004

Industrials

Industrials

Ten Largest Holdings (% of Total Net Assets)

75%

Consumer Staples

Consumer Staples

Sears Holdings Corp.

1.4%

Energy

Energy

Express Scripts, Inc.

1.2%

Varian Medical Systems, Inc.

1.2%

50%

Information Technology

Information Technology

Zimmer Holdings, Inc.

1.2%

Moody’s Corp.

1.2%

XTO Energy, Inc.

1.1%

Consumer Discretionary

Consumer Discretionary

25%

Coach, Inc.

1.1%

Intuitive Surgical, Inc.

1.1%

Health Care

Health Care

Amazon.com, Inc.

1.1%

0%

Bed Bath & Beyond, Inc.

1.1%

Large-Cap Growth Fund

S&P 500/Citigroup

Top Ten Total

11.7%

Pure Growth Index

“Ten Largest Holdings” exclude any temporary

cash or derivative investments.

“Holdings Diversification (Market Exposure as % of Net Assets)” excludes

any temporary cash investments.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

19

FUND PROFILES (Unaudited) (concluded)

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE:

To provide security of principal, high current income and liquidity by investing in securities issued by the U.S.

Government, its agencies or instrumentalities.

Holdings Diversification (Market Exposure as % of Net Assets)

Inception Dates:

Investor Class

December 1, 1993

110%

Advisor Class

April 1, 1998

100%

Other

A-Class

March 31, 2004

Freddie Mac—FADN

C-Class

October 19, 2000

90%

Farmer Mac—FADN

80%

Fannie Mae—FADN

The Fund invests principally in money market

70%

instruments issued or guaranteed as to principal

60%

Repurchase Agreements

and interest by the U.S. Government, its agencies

50%

or instrumentalities.

40%

Federal Home Loan Bank—FAB

30%

20%

10%

Federal Home Loan Bank—FADN

0%

U.S. Government Money Market Fund

FAB — Federal Agency Bonds

FADN — Federal Agency Discount Notes.

20

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

NOVA FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 84.9%

Affiliated Computer Services,

Inc. — Class A*

780

$

39,491

INFORMATION TECHNOLOGY 13.6%

Citrix Systems, Inc.*

1,460

36,880

Microsoft Corp.

63,040

$

1,682,538

SanDisk Corp.*

1,810

35,385

International Business Machines

Fidelity National Information

Corp.

10,880

1,272,525

Services, Inc.

1,520

28,059

Cisco Systems, Inc.*

46,891

1,057,861

Teradata Corp.*

1,430

27,885

Hewlett-Packard Co.

19,665

909,310

LSI Logic Corp.*†

5,060

27,122

Intel Corp.

44,658

836,444

National Semiconductor Corp.

1,565

26,934

Apple, Inc.*

7,110

808,123

Total System Services, Inc.

1,590

26,076

Google, Inc. — Class A*

1,920

768,998

Molex, Inc.

1,144

25,683

Oracle Corp.*

31,462

638,993

Advanced Micro Devices, Inc.*

4,776

25,074

Qualcomm, Inc.

13,079

562,005

Micron Technology, Inc.*

6,036

24,446

Dell, Inc.*

14,000

230,720

Akamai Technologies, Inc.*

1,360

23,718

Texas Instruments, Inc.

10,362

222,783

Lexmark International, Inc.*

710

23,125

EMC Corp*

16,630

198,895

Compuware Corp.*

2,050

19,865

eBay, Inc.*

8,770

196,273

QLogic Corp.*

1,050

16,128

Corning, Inc.

12,464

194,937

Jabil Circuit, Inc.

1,690

16,123

Yahoo!, Inc.*

11,130

192,549

Novellus Systems, Inc.*

782

15,358

Automatic Data Processing, Inc.

4,085

174,634

JDS Uniphase Corp.*

1,720

14,551

Adobe Systems, Inc.*

4,260

168,142

Convergys Corp.*

980

14,484

Applied Materials, Inc.

10,608

160,499

Novell, Inc.*

2,765

14,212

Western Union Co.

5,850

144,319

Tellabs, Inc.*

3,185

12,931

Symantec Corp.*

6,740

131,969

Teradyne, Inc.*

1,324

10,340

Motorola, Inc.

18,006

128,563

Unisys Corp.*

2,890

7,948

Tyco Electronics Ltd.

3,790

104,831

Ciena Corp.*

715

7,207

MasterCard, Inc.

580

102,851

Total Information Technology

13,000,426

Electronic Arts, Inc.*

2,551

94,361

FINANCIALS 13.4%

Juniper Networks, Inc.*

4,282

90,222

JPMorgan Chase & Co.

29,258

1,366,349

Paychex, Inc.

2,580

85,217

Bank of America Corp.

36,069

1,262,415

Agilent Technologies, Inc.*

2,865

84,976

Wells Fargo & Co.

26,249

985,125

Intuit, Inc.*

2,580

81,554

Citigroup, Inc.

43,537

892,944

Xerox Corp.

7,000

80,710

U.S. Bancorp

13,785

496,536

Broadcom Corp. — Class A*

3,479

64,814

Goldman Sachs Group, Inc.

3,490

446,720

CA, Inc.

3,160

63,074

American Express Co.

9,292

329,216

Fiserv, Inc.*

1,320

62,462

Merrill Lynch & Co., Inc.

12,228

309,368

Autodesk, Inc.*

1,810

60,725

MetLife, Inc.

5,462

305,872

Analog Devices, Inc.

2,284

60,183

Bank of New York Mellon Corp.

9,119

297,097

Amphenol Corp. — Class A

1,420

56,999

Prudential Financial, Inc.

3,392

244,224

Linear Technology Corp.

1,744

53,471

AFLAC, Inc.

3,786

222,427

Cognizant Technology Solutions

Travelers Companies, Inc.

4,721

213,389

Corp. — Class A*

2,340

53,422

PNC Financial Services Group, Inc.

2,756

205,873

Xilinx, Inc.

2,184

51,215

Morgan Stanley

8,863

203,849

MEMC Electronic Materials, Inc.*

1,791

50,614

CME Group, Inc.

540

200,615

Harris Corp.

1,076

49,711

Allstate Corp.

4,336

199,976

Altera Corp.

2,377

49,156

State Street Corp.

3,435

195,383

Computer Sciences Corp.*

1,220

49,032

Charles Schwab Corp.

7,404

192,504

NetApp, Inc.*

2,630

47,945

Simon Property Group, Inc.

1,810

175,570

Nvidia Corp.*

4,418

47,317

BB&T Corp.

4,348

164,354

Sun Microsystems, Inc.*

5,951

45,228

Chubb Corp.

2,875

157,837

BMC Software, Inc.*

1,530

43,804

Capital One Financial Corp.

2,999

152,949

KLA-Tencor Corp.

1,369

43,329

Marsh & McLennan Companies,

Microchip Technology, Inc.

1,449

42,644

Inc.

4,114

130,661

Salesforce.com, Inc.*

840

40,656

SunTrust Banks, Inc.

2,820

126,872

VeriSign, Inc.*

1,526

39,798

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

21

MARKET MARKET

Total Financials

ENERGY 11.4%

Total Energy

SHARES VALUE SHARES VALUE

NOVA FUND

SCHEDULE OF INVESTMENTS  (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

22 | See Notes to Financial Statements.

September 30, 2008

Northern Trust Corp. 1,751 $ 126,422 Federated Investors, Inc. —

Loews Corp. 2,873 113,455 Class B 710 $ 20,483

T. Rowe Price Group, Inc. 110,374 MBIA, Inc. 1,570 18,683

Franklin Resources, Inc. 1,220 107,519 CB Richard Ellis Group, Inc. —

Public Storage 1,010 100,000 Class A* 1,380 18,451

Aon Corp. 2,200 98,912 Sovereign Bancorp, Inc. 4,310 17,024

Vornado Realty Trust 1,082 98,408 CIT Group, Inc. 2,290 15,938

Hartford Financial Services Group, First Horizon National Corp. 15,140

Inc. 2,398 98,294 E*Trade Financial Corp.* 4,310 12,068

Equity Residential 2,180 96,814 National City Corp. 6,018 10,532

Progressive Corp. 5,420 94,308 MGIC Investment Corp. 1,000 7,030

Principal Financial Group, Inc. 89,328

Boston Properties, Inc. 949 88,883

Lincoln National Corp. 2,050 87,760

ProLogis 2,110 87,080

NYSE Euronext 2,137 83,728

HCP, Inc. 2,020 81,063

Hudson City Bancorp, Inc. 75,479

American International Group, Inc. 71,362

Unum Group 2,736 68,674

Plum Creek Timber Co., Inc.

(REIT) 1,370 68,308

KIMCO Realty Corp. 1,820 67,231

Ameriprise Financial, Inc. 65,628

Leucadia National Corp. 1,420 64,525

Invesco Ltd. 3,064 64,283

Wachovia Corp. 17,073 59,755

AvalonBay Communities, Inc. 59,643

Host Hotels & Resorts, Inc. 55,419

M&T Bank Corp. 613 54,710

Fifth Third Bancorp 4,563 54,300

Moody’s Corp. 1,590 54,060

Regions Financial Corp. 5,492 52,723

Discover Financial Services 52,392

Assurant, Inc. 938 51,590

IntercontinentalExchange, Inc.* 49,215

KeyCorp 3,911 46,697

SLM Corp.* 3,750 46,275

XL Capital Ltd. 2,504 44,922

Legg Mason, Inc. 1,119 42,589

American Capital Ltd. 1,660 42,347

Marshall & Ilsley Corp. 2,050 41,307

Torchmark Corp. 688 41,142

Comerica, Inc. 1,210 39,676

Cincinnati Financial Corp. 36,972

Zions Bancorporation 920 35,604

Developers Diversified Realty

Corp. 970 30,739

Janus Capital Group, Inc. 30,569

Genworth Financial, Inc. —

Class A 3,465 29,834

General Growth Properties, Inc. 27,633

Apartment Investment &

Management Co. — Class A 24,164

Huntington Bancshares, Inc. 23,235

12,848,824

Exxon Mobil Corp. 41,710 3,239,199

Chevron Corp. 16,500 1,360,920

ConocoPhillips 12,200 893,650

Schlumberger Ltd. 9,633 752,241

Occidental Petroleum Corp. 462,152

Devon Energy Corp. 3,550 323,760

Transocean, Inc.* 2,560 281,190

Apache Corp. 2,690 280,513

Halliburton Co. 7,040 228,026

Marathon Oil Corp. 5,670 226,063

XTO Energy, Inc. 4,410 205,153

Hess Corp. 2,270 186,322

Anadarko Petroleum Corp. 182,398

EOG Resources, Inc. 2,000 178,920

National-Oilwell Varco, Inc.* 168,270

Chesapeake Energy Corp. 150,253

Baker Hughes, Inc. 2,480 150,139

Weatherford International Ltd.* 137,516

Valero Energy Corp. 4,200 127,260

Spectra Energy Corp. 4,940 117,572

Williams Companies, Inc. 109,499

Smith International, Inc. 1,729 101,389

Murphy Oil Corp. 1,530 98,134

Peabody Energy Corp. 2,180 98,100

Noble Corp. 2,160 94,824

Southwestern Energy Co.* 84,290

Noble Energy, Inc. 1,390 77,270

El Paso Corp. 5,630 71,839

Consol Energy, Inc. 1,470 67,458

Cameron International Corp.* 67,445

ENSCO International, Inc. 66,274

Nabors Industries Ltd.* 2,250 56,070

Range Resources Corp. 1,250 53,588

Pioneer Natural Resources Co. 50,189

BJ Services Co. 2,360 45,147

Sunoco, Inc. 940 33,445

Cabot Oil & Gas Corp. 830 29,996

Rowan Companies, Inc. 910 27,801

Massey Energy Co. 680 24,256

Tesoro Corp. 1,104 18,205

10,926,736

2,055

1,618

2,054

4,091

21,430

1,718

606

4,170

3,791

610

1,300

1,259

1,830

690

2,908

6,560

3,760

3,350

4,190

5,470

4,630

2,760

1,750

1,150

960

MARKET MARKET

HEALTH CARE 11.1% CONSUMER STAPLES 10.3%

Total Consumer Staples

INDUSTRIALS 9.4%

Total Health Care

SHARES VALUE SHARES VALUE

NOVA FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 23

September 30, 2008

Johnson & Johnson, Inc. $ Procter & Gamble Co. 24,127 $

Pfizer, Inc. 54,127 998,102 Wal-Mart Stores, Inc. 17,783 1,065,024

Abbott Laboratories 12,368 712,149 PepsiCo, Inc. 12,463 888,238

Merck & Co., Inc. 17,185 542,359 Coca-Cola Co. 15,761 833,442

Amgen, Inc.* 8,500 503,795 Philip Morris International, Inc. 786,627

Medtronic, Inc. 9,060 453,906 Kraft Foods, Inc. — Class A 393,459

Wyeth 10,702 395,332 CVS Caremark Corp. 11,373 382,815

Eli Lilly & Co. 8,023 353,253 Anheuser-Busch Companies, Inc. 373,449

Gilead Sciences, Inc.* 7,390 336,836 Altria Group, Inc. 16,299 323,372

Bristol-Myers Squibb Co. 331,202 Colgate-Palmolive Co. 4,034 303,962

Baxter International, Inc. 5,040 330,775 Walgreen Co. 7,828 242,355

UnitedHealth Group, Inc. 248,314 Costco Wholesale Corp. 3,438 223,229

Schering-Plough Corp. 13,031 240,683 Kimberly-Clark Corp. 3,281 212,740

Celgene Corp.* 3,650 230,972 General Mills, Inc. 2,652 182,246

Covidien Ltd. 4,030 216,653 Sysco Corp. 4,747 146,350

WellPoint, Inc.* 4,108 192,131 Kroger Co. 5,194 142,731

Thermo Fisher Scientific, Inc.* 184,800 Avon Products, Inc. 3,420 142,169

Medco Health Solutions, Inc.* 182,385 Wm. Wrigley Jr. Co. 1,727 137,124

Genzyme Corp.* 2,160 174,722 H.J. Heinz Co. 2,468 123,326

Becton, Dickinson & Co. 1,960 157,310 Kellogg Co. 2,009 112,705

Boston Scientific Corp.* 147,706 Archer-Daniels-Midland Co. 111,522

Express Scripts, Inc.* 1,980 146,164 Lorillard, Inc. 1,370 97,476

Cardinal Health, Inc. 2,880 141,926 Safeway, Inc. 3,446 81,739

Aetna, Inc. 3,781 136,532 UST, Inc. 1,180 78,517

Allergan, Inc. 2,468 127,102 Sara Lee Corp. 5,567 70,311

Stryker Corp. 1,990 123,977 Clorox Co. 1,110 69,586

McKesson Corp. 2,220 119,458 ConAgra Foods, Inc. 3,572 69,511

St. Jude Medical, Inc.* 2,740 119,163 Campbell Soup Co. 1,700 65,620

Biogen Idec, Inc.* 2,330 117,176 Reynolds American, Inc. 1,341 65,200

Zimmer Holdings, Inc.* 1,810 116,854 Molson Coors Brewing Co. —

C.R. Bard, Inc. 800 75,896 Class B 1,187 55,492

CIGNA Corp. 2,209 75,062 Hershey Co. 1,330 52,588

Intuitive Surgical, Inc.* 310 74,704 Estee Lauder Companies, Inc. —

Forest Laboratories, Inc.* 69,286 Class A† 920 45,917

Quest Diagnostics, Inc. 1,270 65,621 Brown-Forman Corp. — Class B 45,240

Laboratory Corporation of Coca-Cola Enterprises, Inc. 41,774

America Holdings* 890 61,855 McCormick & Co., Inc. 1,016 39,065

Varian Medical Systems, Inc.* 57,130 SUPERVALU, INC. 1,700 36,890

Barr Pharmaceuticals, Inc.* 56,811 Constellation Brands, Inc. —

Humana, Inc.* 1,356 55,867 Class A* 1,528 32,791

Hospira, Inc.* 1,280 48,896 Pepsi Bottling Group, Inc. 32,087

DaVita, Inc.* 840 47,888 Tyson Foods, Inc. — Class A 28,775

AmerisourceBergen Corp. 47,815 Dean Foods Co.* 1,207 28,196

Applied Biosystems Inc. 1,360 46,580 Whole Foods Market, Inc. 22,173

Waters Corp.* 790 45,962

Coventry Health Care, Inc.* 38,734

Millipore Corp.* 440 30,272

Mylan Laboratories, Inc.* 27,922

IMS Health, Inc. 1,460 27,609

PerkinElmer, Inc. 958 23,921

Watson Pharmaceuticals, Inc.* 23,797

Patterson Companies, Inc.* 22,199

King Pharmaceuticals, Inc.* 18,921

Tenet Healthcare Corp.* 3,330 18,482

10,697,610

9,867,244

General Electric Co. 79,870 2,036,685

United Parcel Service, Inc. —

Class B 8,100 509,409

United Technologies Corp. 464,864

3M Co. 5,610 383,219

Boeing Co. 5,940 340,659

Lockheed Martin Corp. 2,670 292,819

Caterpillar, Inc. 4,890 291,444

22,440

1,554,643

1,681,411

16,354

12,014

5,756

15,885

9,780

3,360

4,053

12,038

5,090

2,450

630

2,491

1,000

870

1,100

2,410

1,270

1,107

1,190

2,445

835

730

1,975

7,740

MARKET MARKET

CONSUMER DISCRETIONARY 7.2%

Total Industrials

SHARES VALUE SHARES VALUE

NOVA FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

24 | See Notes to Financial Statements.

September 30, 2008

Union Pacific Corp. 4,090 $ 291,044

Emerson Electric Co. 6,230 254,122 McDonald’s Corp. 8,924 $ 550,611

Honeywell International, Inc. 248,469 Comcast Corp. — Class A 459,931

General Dynamics Corp. 3,190 234,848 Walt Disney Co. 14,889 456,943

Burlington Northern Santa Fe Time Warner, Inc. 28,352 371,695

Corp. 2,270 209,816 Home Depot, Inc. 13,445 348,091

Norfolk Southern Corp. 3,010 199,292 Target Corp. 5,970 292,828

FedEx Corp. 2,500 197,600 Lowe’s Companies, Inc. 11,730 277,884

Raytheon Co. 3,350 179,258 News Corp. — Class A 18,199 218,206

CSX Corp. 3,270 178,444 Nike, Inc. — Class B 3,150 210,735

Deere & Co. 3,430 169,785 Amazon.com, Inc.* 2,561 186,338

Northrop Grumman Corp. 164,063 Johnson Controls, Inc. 4,770 144,674

Illinois Tool Works, Inc. 3,210 142,684 Staples, Inc. 5,629 126,652

Danaher Corp. 2,050 142,270 Yum! Brands, Inc. 3,759 122,581

Tyco International Ltd. 3,810 133,426 Carnival Corp. 3,461 122,346

Waste Management, Inc. 124,071 Viacom, Inc. — Class B* 4,913 122,039

Paccar, Inc. 2,920 111,515 DIRECTV Group, Inc.* 4,640 121,429

L-3 Communications Holdings, Inc. 96,354 Kohl’s Corp.* 2,450 112,896

Precision Castparts Corp. 87,761 TJX Companies, Inc. 3,370 102,852

Southwest Airlines Co. 5,890 85,464 Best Buy Company, Inc. 2,704 101,400

ITT Corporation 1,460 81,191 Omnicom Group, Inc. 2,560 98,714

Fluor Corp. 1,440 80,208 Ford Motor Co.* 18,160 94,432

Ingersoll-Rand Co. — Class A 79,639 Starbucks Corp.* 5,870 87,287

Eaton Corp. 1,330 74,719 McGraw-Hill Companies, Inc. 80,605

Parker Hannifin Corp. 1,350 71,550 CBS Corp. 5,460 79,607

Cummins, Inc. 1,630 71,264 Harley-Davidson, Inc. 1,890 70,497

CH Robinson Worldwide, Inc. 69,815 Fortune Brands, Inc. 1,200 68,832

Rockwell Collins, Inc. 1,280 61,555 Coach, Inc.* 2,710 67,858

Dover Corp. 1,510 61,230 The Gap, Inc. 3,698 65,750

Expeditors International of Bed Bath & Beyond, Inc.* 65,647

Washington, Inc. 1,710 59,576 Marriott International, Inc. —

Textron, Inc. 2,000 58,560 Class A 2,330 60,790

Cooper Industries Ltd. — Class A 55,930 Macy’s, Inc. 3,339 60,035

Pitney Bowes, Inc. 1,670 55,544 H&R Block, Inc. 2,630 59,832

Jacobs Engineering Group, Inc.* 53,224 J.C. Penney Company, Inc. 58,545

Masco Corp. 2,890 51,847 VF Corp. 700 54,117

Fastenal Co. 1,040 51,366 Mattel, Inc. 2,855 51,504

W.W. Grainger, Inc. 520 45,224 Genuine Parts Co. 1,279 51,429

Rockwell Automation, Inc. 43,688 Apollo Group, Inc. — Class A* 50,405

Goodrich Corp. 1,000 41,600 Whirlpool Corp. 600 47,574

RR Donnelley & Sons Co. 41,456 GameStop Corp. — Class A* 44,747

Avery Dennison Corp. 860 38,253 Sherwin-Williams Co. 774 44,242

Equifax, Inc. 1,030 35,484 Sears Holdings Corp.* 460 43,010

Pall Corp. 960 33,014 General Motors Corp. 4,550 42,998

Robert Half International, Inc. 30,938 International Game Technology,

Cintas Corp. 1,060 30,433 Inc. 2,475 42,521

Allied Waste Industries, Inc.* 30,219 AutoZone, Inc.* 340 41,936

Ryder System, Inc. 450 27,900 Starwood Hotels & Resorts

Terex Corp.* 780 23,806 Worldwide, Inc. 1,474 41,478

Manitowoc Co., Inc. 1,044 16,234 Limited Brands, Inc. 2,266 39,247

Monster Worldwide, Inc.* 979 14,597 Newell Rubbermaid, Inc. 2,225 38,404

Nordstrom, Inc. 1,255 36,169

Eastman Kodak Co. 2,288 35,189

Tiffany & Co. 977 34,703

Hasbro, Inc. 989 34,338

9,059,449

5,980

23,430

2,710

3,940

980

1,114

2,555

2,550

1,370

2,090

1,400

980

1,756

1,170

850

1,690

1,308

1,250

2,720

MARKET MARKET

Total Utilities

MATERIALS 2.9%

Total Consumer Discretionary

UTILITIES 3.0%

Total Materials

TELECOMMUNICATION SERVICES 2.6%

SHARES VALUE SHARES VALUE

NOVA FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 25

September 30, 2008

Darden Restaurants, Inc. 1,130 $ 32,352 AES Corp.* 5,400 $ 63,126

Gannett Co., Inc. 1,830 30,945 Questar Corp. 1,390 56,879

Polo Ralph Lauren Corp. 460 30,654 DTE Energy Co. 1,310 52,557

Goodyear Tire & Rubber Co.* 29,701 Allegheny Energy, Inc. 1,360 50,007

Interpublic Group of Companies, CenterPoint Energy, Inc. 2,740 39,922

Inc.* 3,825 29,644 Pepco Holdings, Inc. 1,620 37,114

Black & Decker Corp. 480 29,160 Constellation Energy Group, Inc. 34,749

D.R. Horton, Inc. 2,210 28,774 NiSource, Inc. 2,200 32,472

Leggett & Platt, Inc. 1,290 28,109 Integrys Energy Group, Inc. 30,463

Washington Post Co. — Class B 27,838 Pinnacle West Capital Corp. 27,872

Abercrombie & Fitch Co. — TECO Energy, Inc. 1,710 26,898

Class A 700 27,615 CMS Energy Corp. 1,810 22,571

Stanley Works 630 26,296 Nicor, Inc. 360 15,966

Scripps Networks Interactive, Dynegy Inc.* 4,060 14,535

Inc. — Class A 720 26,143

Family Dollar Stores, Inc. 1,096 25,975

Expedia, Inc.* 1,680 25,385

Snap-On, Inc. 460 24,224

Pulte Homes, Inc. 1,714 23,945

Wyndham Worldwide Corp. 22,025

Big Lots, Inc.* 657 18,284

RadioShack Corp. 1,032 17,833

Lennar Corp. — Class A 1,140 17,317

Centex Corp. 990 16,038

Harman International Industries,

Inc. 470 16,013

New York Times Co. — Class A 13,433

Office Depot, Inc.* 2,183 12,705

Liz Claiborne, Inc. 760 12,487

Jones Apparel Group, Inc. 12,402

KB HOME 600 11,808

AutoNation, Inc.* 870 9,779

Meredith Corp. 290 8,132

Dillard’s, Inc. — Class A 460 5,428

6,883,017

Eastman Chemical Co. 610 33,587

Exelon Corp. 5,280 330,634 MeadWestvaco Corp. 1,370 31,935

Southern Co. 6,180 232,924 Ball Corp. 780 30,802

Dominion Resources, Inc. 199,355 Sealed Air Corp. 1,270 27,927

Duke Energy Corp. 10,160 177,089 Pactiv Corp.* 1,050 26,072

FPL Group, Inc. 3,280 164,984 International Flavors & Fragrances,

FirstEnergy Corp. 2,450 164,126 Inc. 630 24,860

Entergy Corp. 1,540 137,075 Allegheny Technologies, Inc. 23,936

Public Service Enterprise Group, AK Steel Holding Corp. 900 23,328

Inc. 4,080 133,783 Bemis Co. 800 20,968

American Electric Power Co., Inc. 119,607 Hercules, Inc. 910 18,009

PPL Corp. 3,010 111,430 Ashland, Inc. 460 13,450

PG&E Corp. 2,880 107,856 Titanium Metals Corp. 680 7,711

Edison International 2,620 104,538

Sempra Energy 1,980 99,931

Consolidated Edison, Inc. 94,082

Progress Energy, Inc. 2,100 90,573

Xcel Energy, Inc. 3,580 71,564

Ameren Corp. 1,690 65,961

2,910,643

Monsanto Co. 4,420 437,492

E.I. du Pont de Nemours and Co. 291,772

Dow Chemical Co. 7,430 236,126

Praxair, Inc. 2,530 181,502

Freeport-McMoRan Copper &

Gold, Inc. 3,080 175,098

Alcoa, Inc. 6,530 147,447

Newmont Mining Corp. 3,670 142,249

Air Products & Chemicals, Inc. 116,433

Weyerhaeuser Co. 1,700 102,986

Nucor Corp. 2,540 100,330

International Paper Co. 3,430 89,797

PPG Industries, Inc. 1,320 76,982

United States Steel Corp. 940 72,953

Rohm & Haas Co.† 990 69,300

Ecolab, Inc. 1,410 68,413

Vulcan Materials Co. 880 65,560

Sigma-Aldrich Corp. 1,010 52,944

CF Industries Holdings, Inc. 41,157

2,751,126

AT&T, Inc. 46,808 1,306,879

Verizon Communications, Inc. 725,009

Sprint Nextel Corp. 22,586 137,775

American Tower Corp. — Class A* 111,831

1,940

1,430

610

50

810

1,402

940

670

4,660

810

3,230

2,190

7,240

1,700

450

22,593

3,109

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

NOVA FUND

MARKET

SHARES

VALUE

Embarq Corp.

1,131

$

45,862

Windstream Corp.

3,477

38,039

Qwest Communications

International, Inc.

11,653

37,639

CenturyTel, Inc.

803

29,430

Frontier Communications Corp.

2,508

28,842

Total Telecommunication Services

2,461,306

Total Common Stocks

(Cost $72,601,816)

81,406,381

SECURITIES LENDING COLLATERAL 0.1%

Mount Vernon Securities

Lending Trust Prime

Portfolio (Note 9)

85,572

85,572

Total Securities Lending Collateral

(Cost $85,572)

85,572

FACE

AMOUNT

REPURCHASE AGREEMENTS 11.0%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$4,362,028

4,362,028

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

3,613,174

3,613,174

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

2,558,000

2,558,000

Total Repurchase Agreements

(Cost $10,533,202)

10,533,202

Total Investments 96.0%

(Cost $83,220,590)

$92,025,155

Other Assets in Excess

of Liabilities – 4.0%

$

3,871,473

Net Assets – 100.0%

$95,896,628

UNREALIZED

CONTRACTS

LOSS

FUTURES CONTRACTS PURCHASED

December 2008 S&P 500 Index

Mini Futures Contracts

(Aggregate Market Value

of Contracts $61,680,563)

1,051

$ (1,535,967)

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

REIT — Real Estate Investment Trust

26

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

MARKET MARKET

COMMON STOCKS 70.2%

INFORMATION TECHNOLOGY 11.2%

Total Information Technology

FINANCIALS 11.1%

SHARES VALUE SHARES VALUE

S&P 500 FUND

SCHEDULE OF INVESTMENTS (Unaudited)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 27

September 30, 2008

Affiliated Computer Services,

Inc. — Class A* 1,010 $ 51,136

Citrix Systems, Inc.* 1,915 48,373

Microsoft Corp. 81,540 $ 2,176,303 SanDisk Corp.* 2,363 46,197

International Business Machines Fidelity National Information

Corp. 14,010 1,638,610 Services, Inc. 1,971 36,385

Cisco Systems, Inc.* 61,090 1,378,190 Teradata Corp.* 1,850 36,075

Hewlett-Packard Co. 25,330 1,171,259 LSI Logic Corp.* 6,661 35,703

Intel Corp. 58,140 1,088,962 National Semiconductor Corp. 34,764

Apple, Inc.* 9,246 1,050,900 Total System Services, Inc. 34,046

Google, Inc. — Class A* 2,472 990,085 Molex, Inc. 1,480 33,226

Oracle Corp.* 40,846 829,582 Advanced Micro Devices, Inc.* 32,970

Qualcomm, Inc. 16,970 729,201 Micron Technology, Inc.* 7,870 31,874

Dell, Inc.* 18,226 300,365 Akamai Technologies, Inc.* 30,782

Texas Instruments, Inc. 13,560 291,540 Lexmark International, Inc.* 30,258

EMC Corp* 21,410 256,064 Compuware Corp.* 2,645 25,630

Corning, Inc. 16,320 255,245 QLogic Corp.* 1,379 21,181

eBay, Inc.* 11,328 253,521 Jabil Circuit, Inc. 2,204 21,026

Yahoo!, Inc.* 14,416 249,397 Novellus Systems, Inc.* 1,030 20,229

Automatic Data Processing, Inc. 224,865 JDS Uniphase Corp.* 2,220 18,781

Adobe Systems, Inc.* 5,558 219,374 Convergys Corp.* 1,260 18,623

Applied Materials, Inc. 13,870 209,853 Novell, Inc.* 3,570 18,350

Western Union Co. 7,630 188,232 Tellabs, Inc.* 4,110 16,687

Symantec Corp.* 8,728 170,894 Teradyne, Inc.* 1,750 13,668

Motorola, Inc. 23,430 167,290 Unisys Corp.* 3,720 10,230

Tyco Electronics Ltd. 4,885 135,119 Ciena Corp.* 930 9,374

MasterCard, Inc. 758 134,416

Electronic Arts, Inc.* 3,300 122,067

Juniper Networks, Inc.* 5,620 118,413

Paychex, Inc. 3,334 110,122

Agilent Technologies, Inc.* 109,742

Intuit, Inc.* 3,354 106,020

Xerox Corp. 9,020 104,001

Broadcom Corp. — Class A* 84,953

CA, Inc. 4,094 81,716

Fiserv, Inc.* 1,725 81,627

Autodesk, Inc.* 2,360 79,178

Analog Devices, Inc. 3,000 79,050

Amphenol Corp. — Class A 74,941

Linear Technology Corp. 2,290 70,211

Cognizant Technology Solutions

Corp. — Class A* 3,063 69,928

Xilinx, Inc. 2,860 67,067

MEMC Electronic Materials, Inc.* 66,128

Altera Corp. 3,110 64,315

Harris Corp. 1,390 64,218

Computer Sciences Corp.* 63,098

NetApp, Inc.* 3,438 62,675

Nvidia Corp.* 5,760 61,690

Sun Microsystems, Inc.* 7,790 59,204

KLA-Tencor Corp. 1,790 56,654

BMC Software, Inc.* 1,972 56,458

Microchip Technology, Inc. 55,917

Salesforce.com, Inc.* 1,096 53,046

VeriSign, Inc.* 2,000 52,160

16,859,434

JPMorgan Chase & Co. 38,100 1,779,270

Bank of America Corp. 47,159 1,650,565

Wells Fargo & Co. 34,215 1,284,089

Citigroup, Inc. 56,305 1,154,816

U.S. Bancorp 18,012 648,792

Goldman Sachs Group, Inc. 574,720

American Express Co. 11,992 424,877

Merrill Lynch & Co., Inc. 400,752

MetLife, Inc. 7,100 397,600

Bank of New York Mellon Corp. 386,073

Prudential Financial, Inc. 4,420 318,240

AFLAC, Inc. 4,920 289,050

Travelers Companies, Inc. 276,172

PNC Financial Services Group,

Inc. 3,579 267,351

Morgan Stanley 11,465 263,695

Allstate Corp. 5,600 258,272

CME Group, Inc. 694 257,828

State Street Corp. 4,458 253,571

Charles Schwab Corp. 9,652 250,952

Simon Property Group, Inc. 227,465

BB&T Corp. 5,680 214,704

Chubb Corp. 3,730 204,777

Capital One Financial Corp. 198,390

Marsh & McLennan Companies,

Inc. 5,297 168,233

2,020

2,076

6,280

1,765

929

5,260

3,700

4,560

1,867

2,340

1,570

1,900

4,490

15,840

11,850

6,110

2,345

3,890

MARKET MARKET

Total Financials

ENERGY 9.5%

SHARES VALUE SHARES VALUE

S&P 500 FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

28 | See Notes to Financial Statements.

September 30, 2008

Northern Trust Corp. 2,290 $ 165,338 Apartment Investment &

SunTrust Banks, Inc. 3,658 164,573 Management Co. — Class A $ 31,448

Loews Corp. 3,740 147,693 Huntington Bancshares, Inc. 30,282

T. Rowe Price Group, Inc. 143,943 Federated Investors, Inc. —

Franklin Resources, Inc. 1,582 139,422 Class B 918 26,484

Public Storage 1,311 129,802 MBIA, Inc. 2,054 24,443

Vornado Realty Trust 1,423 129,422 CB Richard Ellis Group, Inc. —

Aon Corp. 2,870 129,035 Class A* 1,807 24,160

Hartford Financial Services Group, Sovereign Bancorp, Inc. 5,620 22,199

Inc. 3,120 127,889 CIT Group, Inc. 2,973 20,692

Equity Residential 2,836 125,947 First Horizon National Corp. 19,603

Progressive Corp. 7,075 123,105 E*Trade Financial Corp.* 5,653 15,828

Principal Financial Group, Inc. 116,379 National City Corp. 7,870 13,772

Boston Properties, Inc. 1,240 116,138 MGIC Investment Corp. 1,302 9,153

Lincoln National Corp. 2,660 113,875

ProLogis 2,740 113,080

NYSE Euronext 2,750 107,745

HCP, Inc. 2,632 105,622

Hudson City Bancorp, Inc. 99,076

American International Group,

Inc. 27,810 92,607

Unum Group 3,570 89,607

Plum Creek Timber Co., Inc.

(REIT) 1,789 89,199

KIMCO Realty Corp. 2,371 87,585

Ameriprise Financial, Inc. 85,568

Leucadia National Corp. 1,850 84,064

Invesco Ltd. 4,000 83,920

AvalonBay Communities, Inc. 78,736

Wachovia Corp. 22,324 78,134

Host Hotels & Resorts, Inc. 72,218

M&T Bank Corp. 800 71,400

Fifth Third Bancorp 5,970 71,043

Moody’s Corp. 2,070 70,380

Regions Financial Corp. 7,191 69,034

Discover Financial Services 68,547

Assurant, Inc. 1,230 67,650

IntercontinentalExchange, Inc.* 63,414

KeyCorp 5,115 61,073

SLM Corp.* 4,898 60,441

XL Capital Ltd. 3,230 57,946

Legg Mason, Inc. 1,468 55,872

American Capital Ltd. 2,146 54,744

Marshall & Ilsley Corp. 2,678 53,962

Torchmark Corp. 900 53,820

Comerica, Inc. 1,566 51,349

Cincinnati Financial Corp. 47,779

Zions Bancorporation 1,190 46,053

Janus Capital Group, Inc. 39,941

Developers Diversified Realty

Corp. 1,253 39,708

Genworth Financial, Inc. —

Class A 4,480 38,573

General Growth Properties, Inc. 35,908

16,706,677

Exxon Mobil Corp. 54,116 4,202,649

Chevron Corp. 21,438 1,768,206

ConocoPhillips 15,894 1,164,235

Schlumberger Ltd. 12,613 984,949

Occidental Petroleum Corp. 601,925

Devon Energy Corp. 4,636 422,803

Transocean, Inc.* 3,357 368,733

Apache Corp. 3,513 366,336

Halliburton Co. 9,227 298,862

Marathon Oil Corp. 7,395 294,839

XTO Energy, Inc. 5,770 268,420

Hess Corp. 2,962 243,121

Anadarko Petroleum Corp. 237,990

EOG Resources, Inc. 2,612 233,669

National-Oilwell Varco, Inc.* 220,560

Baker Hughes, Inc. 3,250 196,755

Chesapeake Energy Corp. 196,190

Weatherford International Ltd.* 180,028

Valero Energy Corp. 5,491 166,377

Spectra Energy Corp. 6,461 153,772

Williams Companies, Inc. 142,799

Smith International, Inc. 2,269 133,054

Peabody Energy Corp. 2,857 128,565

Murphy Oil Corp. 2,004 128,537

Noble Corp. 2,838 124,588

Southwestern Energy Co.* 110,219

Noble Energy, Inc. 1,806 100,396

El Paso Corp. 7,353 93,824

Cameron International Corp.* 88,372

Consol Energy, Inc. 1,924 88,292

ENSCO International, Inc. 86,964

Nabors Industries Ltd.* 2,948 73,464

Range Resources Corp. 1,623 69,578

Pioneer Natural Resources Co. 62,736

BJ Services Co. 3,100 59,303

Sunoco, Inc. 1,229 43,728

Cabot Oil & Gas Corp. 1,086 39,248

Rowan Companies, Inc. 1,191 36,385

898

3,790

2,680

2,094

2,676

5,370

2,240

800

5,434

4,960

786

1,680

1,645

2,378

8,544

4,906

4,391

5,471

7,161

6,038

3,609

2,293

1,509

1,200

MARKET MARKET

Total Energy

HEALTH CARE 9.2%

CONSUMER STAPLES 8.5%

Total Consumer Staples

SHARES VALUE SHARES VALUE

Total Health Care

S&P 500 FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 29

September 30, 2008

Massey Energy Co. 886 $ 31,604 Watson Pharmaceuticals, Inc.* $ 30,780

Tesoro Corp. 1,430 23,581 Patterson Companies, Inc.* 28,981

King Pharmaceuticals, Inc.* 24,429

Tenet Healthcare Corp.* 4,356 24,176

13,823,147

Pfizer, Inc. 69,709 1,285,434

Abbott Laboratories 15,940 917,825 Procter & Gamble Co. 31,380 2,186,872

Merck & Co., Inc. 22,160 699,370 Wal-Mart Stores, Inc.† 23,190 1,388,849

Amgen, Inc.* 11,028 653,630 PepsiCo, Inc. 16,190 1,153,861

Medtronic, Inc. 11,722 587,272 Coca-Cola Co. 20,560 1,087,213

Wyeth 13,790 509,403 Philip Morris International, Inc. 1,025,492

Eli Lilly & Co. 10,350 455,710 Kraft Foods, Inc. — Class A 514,175

Gilead Sciences, Inc.* 9,593 437,249 CVS Caremark Corp. 14,840 499,514

Bristol-Myers Squibb Co. 426,799 Anheuser-Busch Companies, Inc. 482,707

Baxter International, Inc. 6,490 425,939 Altria Group, Inc. 21,300 422,592

UnitedHealth Group, Inc. 320,955 Colgate-Palmolive Co. 5,230 394,080

Schering-Plough Corp. 16,810 310,481 Walgreen Co. 10,244 317,154

Celgene Corp.* 4,739 299,884 Costco Wholesale Corp. 4,500 292,185

Covidien Ltd. 5,198 279,444 Kimberly-Clark Corp. 4,290 278,164

WellPoint, Inc.* 5,290 247,413 General Mills, Inc. 3,480 239,146

Thermo Fisher Scientific, Inc.* 238,150 Sysco Corp. 6,230 192,071

Medco Health Solutions, Inc.* 235,350 Kroger Co. 6,770 186,040

Genzyme Corp.* 2,802 226,654 Avon Products, Inc. 4,405 183,116

Becton, Dickinson & Co. 2,532 203,218 Wm. Wrigley Jr. Co. 2,230 177,062

Boston Scientific Corp.* 190,430 H.J. Heinz Co. 3,230 161,403

Express Scripts, Inc.* 2,576 190,160 Archer-Daniels-Midland Co. 145,921

Cardinal Health, Inc. 3,719 183,272 Kellogg Co. 2,590 145,299

Aetna, Inc. 4,880 176,217 Lorillard, Inc. 1,800 128,070

Allergan, Inc. 3,180 163,770 Safeway, Inc. 4,500 106,740

Stryker Corp. 2,578 160,609 UST, Inc. 1,538 102,339

St. Jude Medical, Inc.* 3,564 154,998 Sara Lee Corp. 7,300 92,199

McKesson Corp. 2,854 153,574 ConAgra Foods, Inc. 4,680 91,073

Biogen Idec, Inc.* 3,028 152,278 Clorox Co. 1,441 90,336

Zimmer Holdings, Inc.* 2,352 151,845 Reynolds American, Inc. 1,760 85,571

C.R. Bard, Inc. 1,046 99,234 Campbell Soup Co. 2,192 84,611

Intuitive Surgical, Inc.* 409 98,561 Molson Coors Brewing Co. —

CIGNA Corp. 2,840 96,503 Class B 1,560 72,930

Forest Laboratories, Inc.* 90,072 Hershey Co. 1,724 68,167

Quest Diagnostics, Inc. 1,649 85,204 Estee Lauder Companies, Inc. —

Laboratory Corporation of Class A 1,196 59,692

America Holdings* 1,161 80,690 Brown-Forman Corp. — Class B 58,166

Varian Medical Systems, Inc.* 74,955 Coca-Cola Enterprises, Inc. 55,006

Barr Pharmaceuticals, Inc.* 74,573 McCormick & Co., Inc. 1,330 51,138

Humana, Inc.* 1,750 72,100 SUPERVALU, INC. 2,200 47,740

Hospira, Inc.* 1,666 63,641 Constellation Brands, Inc. —

DaVita, Inc.* 1,094 62,369 Class A* 2,000 42,920

AmerisourceBergen Corp. 62,235 Pepsi Bottling Group, Inc. 41,305

Waters Corp.* 1,033 60,100 Tyson Foods, Inc. — Class A 37,181

Applied Biosystems Inc. 1,750 59,938 Dean Foods Co.* 1,580 36,909

Coventry Health Care, Inc.* 50,355 Whole Foods Market, Inc. 29,044

Millipore Corp.* 570 39,216

IMS Health, Inc. 1,908 36,080

Mylan Laboratories, Inc.* 35,973

PerkinElmer, Inc. 1,240 30,963

14,235,656

Johnson & Johnson, Inc. 2,004,686

12,854,053

1,080

953

2,550

21,320

15,700

20,470

7,440

12,641

4,330

5,230

15,520

6,660

3,185

810

1,312

3,280

1,142

1,653

1,416

3,114

1,547

1,450

3,150

28,936

MARKET MARKET

INDUSTRIALS 7.8%

Total Industrials

CONSUMER DISCRETIONARY 5.9%

SHARES VALUE SHARES VALUE

S&P 500 FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

30 | See Notes to Financial Statements.

September 30, 2008

Allied Waste Industries, Inc.* $ 39,485

General Electric Co. 102,881 $ 2,623,465 Cintas Corp. 1,374 39,448

United Parcel Service, Inc. — Ryder System, Inc. 600 37,200

Class B 10,578 665,250 Terex Corp.* 1,019 31,100

United Technologies Corp. 598,798 Manitowoc Co., Inc. 1,350 20,992

3M Co. 7,235 494,223 Monster Worldwide, Inc.* 19,085

Boeing Co. 7,655 439,014

Lockheed Martin Corp. 3,480 381,652

Union Pacific Corp. 5,351 380,777

Caterpillar, Inc. 6,356 378,818

Emerson Electric Co. 8,020 327,136

Honeywell International, Inc. 319,935

General Dynamics Corp. 4,151 305,597

Burlington Northern Santa Fe

Corp. 2,971 274,609

Norfolk Southern Corp. 3,940 260,867

FedEx Corp. 3,270 258,461

CSX Corp. 4,289 234,051

Raytheon Co. 4,310 230,628

Deere & Co. 4,420 218,790

Northrop Grumman Corp. 211,829

Danaher Corp. 2,672 185,437

Illinois Tool Works, Inc. 4,140 184,023

Tyco International Ltd. 4,941 173,034

Waste Management, Inc. 159,654

Paccar, Inc. 3,780 144,358

L-3 Communications Holdings,

Inc. 1,274 125,260

Precision Castparts Corp. 113,443

Southwest Airlines Co. 7,723 112,061

ITT Corporation 1,908 106,104

Fluor Corp. 1,850 103,045

Ingersoll-Rand Co. — Class A 102,549

Eaton Corp. 1,720 96,630

Cummins, Inc. 2,124 92,861

Parker Hannifin Corp. 1,730 91,690

CH Robinson Worldwide, Inc. 91,116

Rockwell Collins, Inc. 1,673 80,455

Dover Corp. 1,940 78,667

Expeditors International of

Washington, Inc. 2,246 78,251

Textron, Inc. 2,575 75,396

Pitney Bowes, Inc. 2,183 72,607

Cooper Industries Ltd. — Class A 71,910

Jacobs Engineering Group, Inc.* 69,625

Masco Corp. 3,765 67,544

Fastenal Co. 1,356 66,973

W.W. Grainger, Inc. 670 58,270

Rockwell Automation, Inc. 56,943

Goodrich Corp. 1,302 54,163

RR Donnelley & Sons Co. 53,696

Avery Dennison Corp. 1,110 49,373

Equifax, Inc. 1,348 46,439

Pall Corp. 1,240 42,644

Robert Half International, Inc. 39,847

11,735,278

McDonald’s Corp. 11,630 717,571

Walt Disney Co. 19,400 595,386

Comcast Corp. — Class A 594,122

Time Warner, Inc. 37,050 485,725

Home Depot, Inc. 17,562 454,680

Target Corp. 7,800 382,590

Lowe’s Companies, Inc. 15,160 359,140

News Corp. — Class A 23,740 284,643

Nike, Inc. — Class B 4,104 274,558

Amazon.com, Inc.* 3,300 240,108

Johnson Controls, Inc. 6,140 186,226

Staples, Inc. 7,350 165,375

Carnival Corp. 4,520 159,782

Viacom, Inc. — Class B* 6,420 159,473

Yum! Brands, Inc. 4,850 158,159

DIRECTV Group, Inc.* 5,997 156,941

Kohl’s Corp.* 3,152 145,244

TJX Companies, Inc. 4,370 133,372

Best Buy Company, Inc. 3,490 130,875

Omnicom Group, Inc. 3,339 128,752

Ford Motor Co.* 23,610 122,772

Starbucks Corp.* 7,581 112,729

McGraw-Hill Companies, Inc. 105,166

CBS Corp. 7,093 103,416

Harley-Davidson, Inc. 2,472 92,206

Fortune Brands, Inc. 1,550 88,908

Coach, Inc.* 3,542 88,692

The Gap, Inc. 4,860 86,411

Bed Bath & Beyond, Inc.* 85,310

Marriott International, Inc. —

Class A 3,060 79,835

H&R Block, Inc. 3,452 78,533

Macy’s, Inc. 4,347 78,159

J.C. Penney Company, Inc. 76,615

VF Corp. 900 69,579

Mattel, Inc. 3,730 67,289

Genuine Parts Co. 1,670 67,151

Apollo Group, Inc. — Class A* 66,297

Whirlpool Corp. 777 61,608

Sherwin-Williams Co. 1,020 58,303

GameStop Corp. — Class A* 57,815

General Motors Corp. 5,855 55,330

Sears Holdings Corp.* 590 55,165

International Game Technology,

Inc. 3,200 54,976

3,554

9,970

1,280

7,700

3,499

5,070

1,440

3,290

1,788

1,800

1,282

1,525

2,189

1,610

30,266

3,327

2,716

2,298

1,118

1,690

MARKET MARKET

Total Utilities

MATERIALS 2.4%

Total Consumer Discretionary

UTILITIES 2.5%

SHARES VALUE SHARES VALUE

S&P 500 FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 31

September 30, 2008

Starwood Hotels & Resorts American Electric Power Co.,

Worldwide, Inc. 1,930 $ 54,310 Inc. 4,200 $ 155,526

AutoZone, Inc.* 435 53,653 PPL Corp. 3,900 144,378

Limited Brands, Inc. 2,950 51,094 PG&E Corp. 3,748 140,363

Newell Rubbermaid, Inc. 2,870 49,536 Edison International 3,390 135,261

Nordstrom, Inc. 1,650 47,553 Sempra Energy 2,567 129,557

Eastman Kodak Co. 2,980 45,832 Consolidated Edison, Inc. 123,037

Tiffany & Co. 1,280 45,466 Progress Energy, Inc. 2,744 118,349

Hasbro, Inc. 1,300 45,136 Xcel Energy, Inc. 4,672 93,393

Darden Restaurants, Inc. 1,464 41,914 Ameren Corp. 2,205 86,061

Gannett Co., Inc. 2,389 40,398 AES Corp.* 7,058 82,508

Polo Ralph Lauren Corp. 600 39,984 Questar Corp. 1,819 74,434

Goodyear Tire & Rubber Co.* 38,811 DTE Energy Co. 1,714 68,766

Interpublic Group of Companies, Allegheny Energy, Inc. 1,759 64,678

Inc.* 4,930 38,208 CenterPoint Energy, Inc. 3,582 52,190

D.R. Horton, Inc. 2,897 37,719 Pepco Holdings, Inc. 2,122 48,615

Black & Decker Corp. 620 37,665 Constellation Energy Group, Inc. 45,392

Leggett & Platt, Inc. 1,686 36,738 NiSource, Inc. 2,884 42,568

Abercrombie & Fitch Co. — Integrys Energy Group, Inc. 40,401

Class A 910 35,900 Pinnacle West Capital Corp. 36,371

Family Dollar Stores, Inc. 1,440 34,128 TECO Energy, Inc. 2,235 35,157

Stanley Works 816 34,060 CMS Energy Corp. 2,360 29,429

Scripps Networks Interactive, Nicor, Inc. 470 20,845

Inc. — Class A 930 33,768 Dynegy Inc.* 5,285 18,920

Washington Post Co. — Class B 33,406

Expedia, Inc.* 2,171 32,804

Snap-On, Inc. 596 31,385

Pulte Homes, Inc. 2,210 30,874

Wyndham Worldwide Corp. 28,906

Big Lots, Inc.* 850 23,656

RadioShack Corp. 1,360 23,501

Lennar Corp. — Class A 1,489 22,618

Harman International Industries,

Inc. 620 21,123

Centex Corp. 1,298 21,028

New York Times Co. — Class A 17,405

Office Depot, Inc.* 2,838 16,517

Liz Claiborne, Inc. 996 16,364

Jones Apparel Group, Inc. 16,289

KB HOME 790 15,547

AutoNation, Inc.* 1,115 12,533

Meredith Corp. 370 10,375

Dillard’s, Inc. — Class A 600 7,080

8,948,271

Sigma-Aldrich Corp. 1,328 69,614

Exelon Corp. 6,833 427,883 CF Industries Holdings, Inc. 54,602

Southern Co. 8,035 302,839 Eastman Chemical Co. 808 44,489

Dominion Resources, Inc. 258,348 MeadWestvaco Corp. 1,798 41,911

Duke Energy Corp. 13,216 230,355 Ball Corp. 1,010 39,885

FPL Group, Inc. 4,250 213,775 Sealed Air Corp. 1,666 36,635

FirstEnergy Corp. 3,165 212,023 Pactiv Corp.* 1,379 34,241

Entergy Corp. 1,994 177,486 International Flavors & Fragrances,

Public Service Enterprise Group, Inc. 828 32,673

Inc. 5,291 173,492 Allegheny Technologies, Inc. 31,234

3,782,400

Monsanto Co. 5,758 569,927

E.I. du Pont de Nemours and

Co. 9,451 380,875

Dow Chemical Co. 9,698 308,202

Praxair, Inc. 3,302 236,886

Freeport-McMoRan Copper &

Gold, Inc. 4,044 229,901

Alcoa, Inc. 8,524 192,472

Newmont Mining Corp. 4,802 186,126

Air Products & Chemicals, Inc. 151,911

Weyerhaeuser Co. 2,220 134,488

Nucor Corp. 3,332 131,614

International Paper Co. 4,497 117,731

PPG Industries, Inc. 1,724 100,544

United States Steel Corp. 95,926

Rohm & Haas Co. 1,305 91,350

Ecolab, Inc. 1,847 89,616

Vulcan Materials Co. 1,156 86,122

2,864

2,535

1,868

809

1,057

60

1,840

1,218

880

597

6,039

1,057

2,218

1,236

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

S&P 500 FUND

MARKET

UNREALIZED

SHARES

VALUE

CONTRACTS

LOSS

AK Steel Holding Corp.

1,178

$

30,534

FUTURES CONTRACTS PURCHASED

Bemis Co.

1,040

27,258

December 2008 S&P 500 Index

Hercules, Inc.

1,179

23,332

Mini Futures Contracts

Ashland, Inc.

600

17,544

(Aggregate Market Value

Titanium Metals Corp.

900

10,206

of Contracts $42,431,063)

723

$

(1,220,494)

Total Materials

3,597,849

TELECOMMUNICATION SERVICES 2.1%

AT&T, Inc.

60,940

1,701,445

Verizon Communications, Inc.

29,450

945,050

Sprint Nextel Corp.

29,522

180,084

American Tower Corp. —

Class A*

4,070

146,398

Embarq Corp.

1,470

59,608

Windstream Corp.

4,550

49,777

Qwest Communications

International, Inc.

15,350

49,581

CenturyTel, Inc.

1,060

38,849

Frontier Communications Corp.

3,270

37,605

Total Telecommunication Services

3,208,397

Total Common Stocks

(Cost $110,499,279)

105,751,162

SECURITIES LENDING COLLATERAL 0.0%

Mount Vernon Securities

Lending Trust Prime

Portfolio (Note 9)

41,536

41,536

Total Securities Lending Collateral

(Cost $41,536)

41,536

FACE

AMOUNT

REPURCHASE AGREEMENTS 25.8%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$16,081,914

16,081,914

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

13,321,043

13,321,043

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

9,430,827

9,430,827

Total Repurchase Agreements

(Cost $38,833,784)

38,833,784

Total Investments 96.0%

(Cost $149,374,599)

$144,626,482

Other Assets in Excess

of Liabilities – 4.0%

$

6,037,923

Net Assets – 100.0%

$150,664,405

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

REIT — Real Estate Investment Trust.

32

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

INVERSE S&P 500 STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

FEDERAL AGENCY DISCOUNT NOTES 61.5%

Federal Home Loan Bank*

2.50% due 10/10/08

$25,000,000

$

24,984,375

2.37% due 10/27/08

25,000,000

24,957,208

2.55% due 12/19/08

25,000,000

24,860,104

3.00% due 12/15/08

25,000,000

24,845,526

2.32% due 01/08/09

25,000,000

24,840,500

3.10% due 01/12/09

25,000,000

24,776,211

Freddie Mac*

2.85% due 01/26/09

50,000,000

49,536,875

Total Federal Agency Discount Notes

(Cost $198,800,799)

198,800,799

REPURCHASE AGREEMENTS 34.8%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

46,545,220

46,545,220

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

38,554,545

38,554,545

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

27,295,253

27,295,253

Total Repurchase Agreements

(Cost $112,395,018)

112,395,018

Total Investments 96.3%

(Cost $311,195,817)

$311,195,817

Other Assets in Excess

of Liabilities – 3.7%

$

12,021,489

Net Assets – 100.0%

$323,217,306

UNREALIZED

CONTRACTS

GAIN

FUTURES CONTRACTS SOLD SHORT

December 2008 S&P 500 Index

Mini Futures Contracts

(Aggregate Market Value

of Contracts $319,377,375)

5,442

$

8,530,334

* The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the

U.S. Government.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

33

MARKET MARKET

COMMON STOCKS 96.6% HEALTH CARE 16.2%

INFORMATION TECHNOLOGY 59.7%

Total Health Care

CONSUMER DISCRETIONARY 12.7%

Total Consumer Discretionary

INDUSTRIALS 4.5%

Total Information Technology

SHARES VALUE SHARES VALUE

NASDAQ-100^® FUND

SCHEDULE OF INVESTMENTS (Unaudited)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

34 | See Notes to Financial Statements.

September 30, 2008

Gilead Sciences, Inc.* 351,850 $

Amgen, Inc.* 191,530 11,351,983

Apple, Inc.* 479,890 $ Teva Pharmaceutical Industries

Qualcomm, Inc. 768,656 33,029,148 Ltd. — SP ADR† 244,490 11,195,197

Microsoft Corp. 1,220,430 32,573,277 Celgene Corp.* 175,167 11,084,568

Google, Inc. — Class A* 22,630,581 Genzyme Corp.* 130,810 10,581,221

Cisco Systems, Inc.* 819,660 18,491,530 Express Scripts, Inc.* 85,470 6,309,395

Oracle Corp.* 835,950 16,978,144 Biogen Idec, Inc.* 122,540 6,162,537

Research In Motion Ltd.* 14,981,537 Intuitive Surgical, Inc.* 15,070 3,631,569

Intel Corp. 764,600 14,320,958 DENTSPLY International, Inc. 2,080,842

eBay, Inc.* 376,721 8,431,016 Vertex Pharmaceuticals, Inc.* 2,029,634

Adobe Systems, Inc.* 201,910 7,969,388 Hologic, Inc.* 104,650 2,022,885

Activision Blizzard, Inc.* 7,055,213 Cephalon, Inc.*† 25,720 1,993,043

Symantec Corp.* 340,770 6,672,277 Henry Schein, Inc.* 34,610 1,863,402

Intuit, Inc.*† 157,050 4,964,350 Patterson Companies, Inc.* 1,375,444

Electronic Arts, Inc.*† 124,830 4,617,462 Amylin Pharmaceuticals, Inc.* 1,038,701

Dell, Inc.* 279,810 4,611,269

Yahoo!, Inc.* 258,732 4,476,064

Paychex, Inc. 133,010 4,393,320

Applied Materials, Inc. 269,480 4,077,232

CA, Inc. 193,330 3,858,867

Fiserv, Inc.* 79,690 3,770,931

Linear Technology Corp.† 3,525,471

Altera Corp. 164,320 3,398,138

Xilinx, Inc.† 142,440 3,340,218

Autodesk, Inc.*† 91,030 3,054,056

Juniper Networks, Inc.* 2,923,231

Broadcom Corp. — Class A* 2,907,211

KLA-Tencor Corp.† 81,530 2,580,424

Baidu.com - SP ADR* 10,250 2,544,357

Cognizant Technology Solutions

Corp. — Class A* 110,380 2,519,975

Flextronics International Ltd.* 2,500,019

NetApp, Inc.* 132,960 2,423,861

Nvidia Corp.* 212,270 2,273,412

Flir Systems, Inc.* 56,580 2,173,804

Citrix Systems, Inc.* 84,162 2,125,932

Marvell Technology Group Ltd.* 2,082,270

Check Point Software

Technologies Ltd.*† 82,210 1,869,455

VeriSign, Inc.* 70,750 1,845,160

Microchip Technology, Inc. 1,749,702

Lam Research Corp.* 50,310 1,584,262

Logitech International SA*† 1,580,396

SanDisk Corp.* 80,178 1,567,480

Infosys Technologies Ltd. —

SP ADR 43,590 1,451,983

Akamai Technologies, Inc.* 1,097,674

IAC/InterActiveCorp* 56,360 975,028

Sun Microsystems, Inc.* 966,788

Cadence Design Systems, Inc.* 715,952

328,223,120

88,757,744

Comcast Corp. — Class A 10,991,819

DIRECTV Group, Inc.* 313,940 8,215,810

Amazon.com, Inc.* 109,830 7,991,231

Starbucks Corp.* 394,530 5,866,661

Sears Holdings Corp.*† 51,350 4,801,225

Bed Bath & Beyond, Inc.* 4,272,074

Staples, Inc. 185,500 4,173,750

Apollo Group, Inc. — Class A*† 3,690,832

Wynn Resorts Ltd.† 43,930 3,586,445

Liberty Media Corp - Interactive* 2,728,270

Garmin Ltd.*† 74,670 2,534,300

Liberty Global, Inc. — Class A*† 1,847,694

DISH Network Corp. — Class A* 1,781,220

Expedia, Inc.* 109,471 1,654,107

Focus Media Holding —

SP ADR*† 43,410 1,237,619

Petsmart, Inc. 48,720 1,203,871

Virgin Media, Inc.† 138,990 1,098,021

Lamar Advertising Co. —

Class A* 28,300 874,187

Sirius XM Radio, Inc.* 761,503

Discovery Communications,

Inc. — Class A* 46,220 658,635

69,969,274

Paccar, Inc. 158,180 6,040,894

CH Robinson Worldwide, Inc.† 3,323,509

Expeditors International of

Washington, Inc. 81,240 2,830,402

Fastenal Co. 55,150 2,723,859

Foster Wheeler Ltd.* 58,520 2,113,157

Cintas Corp. 71,680 2,057,933

Stericycle, Inc.*† 34,850 2,053,014

Joy Global, Inc. 41,110 1,855,705

16,037,323

54,544,297

56,503

219,349

55,430

61,060

457,240

45,230

51,370

114,986

138,739

156,050

353,110

223,900

59,453

67,770

62,940

127,209

105,910

559,950

136,010

62,240

211,330

60,980

84,820

1,335,970

65,218

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

NASDAQ-100^®  FUND

MARKET

MARKET

SHARES

VALUE

VALUE

Ryanair Holdings PLC —

Total Investments 105.4%

SP ADR*†

45,160

$

1,012,939

(Cost $390,261,545)

$579,326,074

Monster Worldwide, Inc.*

49,140

732,677

Liabilities in Excess of

Total Industrials

24,744,089

Other Assets – (5.4)%

$ (29,483,978)

CONSUMER STAPLES 1.4%

Net Assets – 100.0%

$549,842,096

Costco Wholesale Corp.

88,940

5,774,874

Hansen Natural Corp.*

35,480

1,073,270

UNREALIZED

CONTRACTS

LOSS

Whole Foods Market, Inc.†

53,430

1,070,203

Total Consumer Staples

7,918,347

FUTURES CONTRACTS PURCHASED

December 2008 NASDAQ-100 Index

TELECOMMUNICATION SERVICES 1.4%

Mini Futures Contracts

Millicom International Cellular

(Aggregate Market Value

SA†

40,660

2,792,122

of Contracts $19,605,420)

612

$

(733,121)

NII Holdings, Inc. — Class B*

62,540

2,371,517

Level 3 Communications, Inc.*

590,110

1,593,297

Leap Wireless International,

Inc. — Class B*

26,700

1,017,270

Total Telecommunication Services

7,774,206

MATERIALS 0.7%

Sigma-Aldrich Corp.

46,990

2,463,216

Steel Dynamics, Inc.

80,300

1,372,327

Total Materials

3,835,543

Total Common Stocks

(Cost $342,157,794)

531,222,323

SECURITIES LENDING COLLATERAL 5.4%

Mount Vernon Securities

Lending Trust Prime

Portfolio (Note 9)

29,320,434

29,320,434

Total Securities Lending Collateral

(Cost $29,320,434)

29,320,434

FACE

AMOUNT

REPURCHASE AGREEMENTS 3.4%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$7,778,580

7,778,580

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

6,443,188

6,443,188

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

4,561,549

4,561,549

Total Repurchase Agreements

(Cost $18,783,317)

18,783,317

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

ADR — American Depository Receipt.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

35

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

INVERSE NASDAQ-100^® STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 97.0%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$27,818,821

$27,818,821

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

23,043,011

23,043,011

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

16,313,636

16,313,636

Total Repurchase Agreements

(Cost $67,175,468)

67,175,468

Total Investments 97.0%

(Cost $67,175,468)

$67,175,468

Other Assets in Excess

of Liabilities – 3.0%

$

2,046,115

Net Assets – 100.0%

$69,221,583

UNREALIZED

CONTRACTS

GAIN

FUTURES CONTRACTS SOLD SHORT

December 2008 NASDAQ-100 Index

Mini Futures Contracts

(Aggregate Market Value of

Contracts $69,131,530)

2,158

$

3,716,816

36

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

MARKET MARKET

COMMON STOCKS 84.8%

FINANCIALS 16.2%

Total Financials

INDUSTRIALS 13.1%

SHARES VALUE SHARES VALUE

MID-CAP 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 37

September 30, 2008

Hospitality Properties Trust $ 30,780

BancorpSouth, Inc. 1,090 30,662

SVB Financial Group* 520 30,118

New York Community Bancorp, Inc. $ 92,512 First Niagara Financial Group, Inc. 29,453

Health Care REIT, Inc. 1,630 86,765 Potlatch Corp. 630 29,226

Everest Re Group Ltd. 990 85,665 Jones Lang LaSalle, Inc. 650 28,262

Federal Realty Investment Trust 80,464 FirstMerit Corp. 1,290 27,090

Macerich Co. 1,190 75,743 Astoria Financial Corp. 1,290 26,742

Regency Centers Corp. 1,120 74,693 Westamerica Bancorporation 26,464

AMB Property Corp. 1,570 71,121 Washington Federal, Inc. 26,015

Eaton Vance Corp. 1,860 65,528 Colonial BancGroup, Inc. 25,466

Rayonier, Inc. 1,264 59,850 Webster Financial Corp. 840 21,210

Duke Realty Corp. 2,350 57,763 Unitrin, Inc. 790 19,703

Alexandria Real Estate Equities, Inc. 57,375 AmeriCredit Corp.* 1,860 18,842

Cullen/Frost Bankers, Inc. 950 57,000 Cathay General Bancorp 790 18,802

Liberty Property Trust 1,490 56,098 Cousins Properties, Inc. 690 17,409

Nationwide Health Properties, PacWest Bancorp 390 11,150

Inc. 1,550 55,769 Equity One, Inc. 510 10,450

Philadelphia Consolidated Holding Horace Mann Educators Corp. 8,108

Corp.* 930 54,470 The PMI Group, Inc. 1,110 3,275

Affiliated Managers Group, Inc.* 53,852

UDR, Inc. 2,050 53,607

W.R. Berkley Corp. 2,240 52,752

Raymond James Financial, Inc. 50,789

Fidelity National Financial, Inc. —

Class A 3,390 49,833

HCC Insurance Holdings, Inc. 49,680

Essex Property Trust, Inc. 410 48,515

SEI Investments Co. 2,150 47,730

Old Republic International Corp. 47,175

Synovus Financial Corp. 4,500 46,575

Commerce Bancshares, Inc. 46,400

First American Corp. 1,480 43,660

Jefferies Group, Inc. 1,920 43,008

Weingarten Realty Investors 42,447

Realty Income Corp. 1,620 41,472

Bank of Hawaii Corp. 770 41,156

Associated Banc-Corp. 2,040 40,698

Stancorp Financial Group, Inc. 40,560

BRE Properties, Inc. — Class A 40,180

Brown & Brown, Inc. 1,850 39,997

Camden Property Trust 850 38,981

Apollo Investment Corp. 2,280 38,874

Arthur J. Gallagher & Co. 38,233

Hanover Insurance Group, Inc. 36,871

Highwoods Properties, Inc. 35,916

Mack-Cali Realty Corp. 1,050 35,564

American Financial Group, Inc. 35,400

City National Corp. 640 34,752

Waddell & Reed Financial, Inc. —

Class A 1,370 33,908

TCF Financial Corp. 1,850 33,300

Protective Life Corp. 1,120 31,931

Mercury General Corp. 570 31,208

Wilmington Trust Corp. 1,080 31,136

2,846,203

Dun & Bradstreet Corp. 870 82,093

Roper Industries, Inc. 1,440 82,022

Flowserve Corp. 920 81,668

Stericycle, Inc.* 1,370 80,707

Joy Global, Inc. 1,730 78,092

Quanta Services, Inc.* 2,810 75,898

Republic Services, Inc. 2,480 74,350

AMETEK, Inc. 1,710 69,717

SPX Corp. 870 66,990

Kansas City Southern* 1,450 64,322

AGCO Corp.* 1,470 62,637

Pentair, Inc. 1,590 54,966

Manpower, Inc. 1,270 54,813

Donaldson Co., Inc. 1,260 52,807

DRS Technologies, Inc. 660 50,655

Harsco Corp. 1,350 50,206

Corrections Corporation of

America* 2,010 49,948

Alliant Techsystems, Inc.* 530 49,788

URS Corp.* 1,350 49,505

Lincoln Electric Holdings, Inc. 43,731

J.B. Hunt Transport Services, Inc. 43,715

KBR, Inc. 2,720 41,534

Shaw Group, Inc.* 1,340 41,178

IDEX Corp. 1,320 40,946

Brink’s Co. 670 40,883

Teleflex, Inc. 640 40,634

Copart, Inc.* 1,040 39,520

Wabtec Corp. 770 39,447

Timken Co. 1,360 38,556

Thomas & Betts Corp.* 920 35,944

Graco, Inc. 960 34,186

1,500

5,510

1,870

940

460

1,410

3,240

510

630

650

1,540

1,840

3,700

1,000

1,190

780

820

1,490

810

1,010

1,200

680

1,310

MARKET MARKET

Total Industrials

CONSUMER DISCRETIONARY 11.6%

SHARES VALUE SHARES VALUE

MID-CAP 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

38 | See Notes to Financial Statements.

September 30, 2008

Trinity Industries, Inc. 1,310 $ 33,706 Lamar Advertising Co. — Class A* $ 37,686

Kennametal, Inc. 1,230 33,358 Service Corporation International 34,443

MSC Industrial Direct Co. — Aeropostale, Inc.* 1,070 34,358

Class A 720 33,170 Guess?, Inc. 960 33,398

Con-way, Inc. 730 32,200 The Warnaco Group, Inc.* 730 33,062

Hubbell, Inc. — Class B 900 31,545 Hanesbrands, Inc.* 1,500 32,625

GATX Corp. 780 30,865 Gentex Corp. 2,270 32,461

Carlisle Companies, Inc. 980 29,371 Phillips-Van Heusen Corp. 820 31,086

Alexander & Baldwin, Inc. 660 29,060 Chipotle Mexican Grill, Inc. —

Nordson Corp. 550 27,011 Class A* 530 29,410

BE Aerospace, Inc.* 1,590 25,170 Brinker International, Inc. 28,982

Crane Co. 780 23,174 John Wiley & Sons, Inc. — Class A 27,910

Herman Miller, Inc. 890 21,778 Tupperware Brands Corp. 990 27,354

Granite Construction, Inc. 520 18,626 Marvel Entertainment, Inc.* 26,971

Mine Safety Appliances Co. 18,298 Dick’s Sporting Goods, Inc.* 26,629

HNI Corp.† 710 17,991 Matthews International Corp. —

Corporate Executive Board Co. 17,188 Class A 490 24,863

Oshkosh Corp. 1,190 15,660 Scientific Games Corp. — Class A* 23,941

Werner Enterprises, Inc. 680 14,763 Rent-A-Center, Inc.* 1,070 23,840

Navigant Consulting, Inc.* 740 14,719 J. Crew Group, Inc.* 830 23,713

JetBlue Airways Corp.* 2,930 14,504 Williams-Sonoma, Inc. 1,390 22,490

United Rentals, Inc.* 950 14,478 Sotheby’s 1,080 21,665

Korn/Ferry International, Inc.* 13,365 M.D.C. Holdings, Inc. 590 21,588

Rollins, Inc. 660 12,527 Netflix, Inc.* 690 21,307

Deluxe Corp. 820 11,800 Saks, Inc.* 2,270 20,997

Alaska Air Group, Inc.* 570 11,622 Corinthian Colleges, Inc.* 20,550

YRC Worldwide, Inc.*† 920 11,003 Career Education Corp.* 19,293

Federal Signal Corp. 760 10,412 Regis Corp. 690 18,975

Avis Budget Group, Inc.* 9,299 AnnTaylor Stores Corp.* 910 18,782

Kelly Services, Inc. — Class A 8,192 Collective Brands, Inc.* 1,020 18,676

AirTran Holdings, Inc.* 1,880 4,568 Under Armour, Inc.* 580 18,421

Ryland Group, Inc. 680 18,034

Life Time Fitness, Inc.*† 560 17,511

International Speedway Corp. —

Class A 450 17,510

Chico’s FAS, Inc.* 2,830 15,480

ArvinMeritor, Inc. 1,180 15,387

Cheesecake Factory, Inc.* 15,205

Barnes & Noble, Inc.† 580 15,126

Callaway Golf Co. 1,040 14,633

Thor Industries, Inc. 570 14,147

Bob Evans Farms, Inc. 490 13,372

Timberland Co. — Class A* 13,201

Lear Corp.* 1,240 13,020

American Greetings Corp. —

Class A 780 11,926

Scholastic Corp. 420 10,786

Charming Shoppes, Inc.* 8,900

Boyd Gaming Corp. 910 8,518

Belo Corp. — Class A 1,410 8,404

99 Cents Only Stores* 750 8,228

Modine Manufacturing Co. 7,530

Pacific Sunwear of California, Inc.* 7,067

Furniture Brands International, Inc. 6,943

Valassis Communications, Inc.* 6,668

2,300,881

Ross Stores, Inc. 2,110 77,669

BorgWarner, Inc. 1,860 60,952

Advance Auto Parts, Inc. 1,530 60,680

Mohawk Industries, Inc.* 890 59,977

Urban Outfitters, Inc.* 1,820 58,003

O’Reilly Automotive, Inc.* 57,555

Dollar Tree, Inc.* 1,450 52,722

Toll Brothers, Inc.* 2,080 52,478

NVR, Inc.* 90 51,480

American Eagle Outfitters, Inc. 50,325

Petsmart, Inc. 2,030 50,161

CarMax, Inc.* 3,530 49,420

DeVry, Inc. 980 48,549

Strayer Education, Inc. 220 44,057

priceline.com, Inc.* 620 42,427

DreamWorks Animation SKG,

Inc. — Class A* 1,290 40,570

ITT Educational Services, Inc.* 40,455

Foot Locker, Inc. 2,480 40,077

Wendy’s/Arby’s Group, Inc. —

Class A 7,520 39,555

1,220

4,120

1,620

690

790

480

1,360

550

1,040

750

1,370

1,180

1,620

430

1,040

760

1,820

520

1,050

660

770

2,150

3,300

500

MARKET MARKET

Total Consumer Discretionary

INFORMATION TECHNOLOGY 11.2%

Total Information Technology

HEALTH CARE 10.2%

SHARES VALUE SHARES VALUE

MID-CAP 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 39

September 30, 2008

Hovnanian Enterprises, Inc. — Fairchild Semiconductor

Class A* 810 $ 6,472 International, Inc.* 2,000 $ 17,780

Borders Group, Inc. 970 6,363 Plantronics, Inc. 780 17,566

Harte-Hanks, Inc. 610 6,326 ADTRAN, Inc. 890 17,346

Media General, Inc. 370 4,599 Mentor Graphics Corp.* 1,480 16,798

Coldwater Creek, Inc.* 760 4,400 ADC Telecommunications, Inc.* 15,971

Blyth, Inc. 380 4,309 SRA International, Inc. — Class A* 15,388

Entercom Communications Corp. 2,209 3Com Corp.* 6,500 15,145

MPS Group, Inc.* 1,490 15,019

Avocent Corp.* 720 14,731

ValueClick, Inc.* 1,390 14,220

Semtech Corp.* 990 13,820

Acxiom Corp. 1,080 13,543

RF Micro Devices, Inc.* 4,190 12,235

Wind River Systems, Inc.* 11,100

Imation Corp. 480 10,843

Palm, Inc. 1,740 10,388

ACI Worldwide, Inc.* 550 9,636

Advent Software, Inc.* 260 9,160

Dycom Industries, Inc.* 630 8,203

1,960,119

Trimble Navigation Ltd.* 1,930 49,910

Synopsys, Inc.* 2,310 46,084 DENTSPLY International, Inc. 89,345

Foundry Networks, Inc.* 2,360 42,976 Covance, Inc.* 1,010 89,294

Ingram Micro, Inc. — Class A* 42,746 Cephalon, Inc.* 1,090 84,464

Lender Processing Services, Inc. 40,897 Hologic, Inc.* 4,110 79,446

Sybase, Inc.* 1,290 39,500 Pharmaceutical Product

CommScope, Inc.* 1,130 39,143 Development, Inc. 1,910 78,979

DST Systems, Inc.* 680 38,073 Vertex Pharmaceuticals, Inc.* 78,446

FactSet Research Systems Inc. 35,530 Henry Schein, Inc.* 1,430 76,991

Diebold, Inc. 1,050 34,765 Beckman Coulter, Inc. 990 70,280

Broadridge Financial Solutions, Inc. 34,628 Charles River Laboratories

Parametric Technology Corp.* 34,040 International, Inc.* 1,090 60,528

Intersil Corp. — Class A 1,980 32,828 Invitrogen Corp.* 1,470 55,566

Cree, Inc.* 1,410 32,120 IDEXX Laboratories, Inc.* 950 52,060

Polycom, Inc.* 1,360 31,457 ResMed, Inc.* 1,210 52,030

F5 Networks, Inc.* 1,290 30,160 Edwards Lifesciences Corp.* 51,984

Zebra Technologies Corp. — Cerner Corp.* 1,090 48,658

Class A* 1,050 29,243 Omnicare, Inc. 1,670 48,046

Cadence Design Systems, Inc.* 28,189 Perrigo Co. 1,240 47,690

Jack Henry & Associates, Inc. 28,055 Gen-Probe, Inc.* 870 46,154

Metavante Technologies, Inc.* 27,734 Universal Health Services, Inc. —

National Instruments Corp. 27,346 Class B 820 45,945

NeuStar, Inc.* 1,260 25,061 Community Health Systems, Inc.* 45,137

Atmel Corp.* 7,150 24,239 Techne Corp.* 620 44,714

Tech Data Corp.* 810 24,179 Health Net, Inc.* 1,720 40,592

Silicon Laboratories, Inc.* 770 23,639 VCA Antech, Inc.* 1,350 39,785

International Rectifier Corp.* 22,253 Endo Pharmaceuticals Holdings,

Gartner, Inc. — Class A* 950 21,546 Inc.* 1,920 38,400

Integrated Device Technology, Inc.* 21,162 United Therapeutics Corp.* 37,861

Macrovision Solutions Corp.* 20,609 Steris Corp. 950 35,701

Vishay Intertechnology, Inc.* 19,794 Lincare Holdings, Inc.* 1,180 35,506

Digital River, Inc.* 590 19,116 Psychiatric Solutions, Inc.* 890 33,776

Fair Isaac Corp. 780 17,979 Sepracor, Inc.* 1,740 31,859

2,034,862

Flir Systems, Inc.* 2,230 85,677

McAfee, Inc.* 2,420 82,183

Western Digital Corp.* 3,550 75,686

Alliance Data Systems Corp.* 68,450

Lam Research Corp.* 2,010 63,295

SAIC, Inc.* 3,078 62,268

Avnet, Inc.* 2,410 59,358

NCR Corp.* 2,620 57,771

Global Payments, Inc. 1,280 57,421

ANSYS, Inc.* 1,420 53,775

Arrow Electronics, Inc.* 1,920 50,342

1,890

680

440

1,110

2,380

2,660

1,340

2,360

680

2,250

1,850

900

4,170

1,380

1,440

910

1,540

1,170

2,720

360

1,340

2,990

1,080

MARKET MARKET

Total Energy

MATERIALS 5.9%

Total Health Care

UTILITIES 6.6%

Total Utilities

ENERGY 6.3%

CONSUMER STAPLES 3.3%

SHARES VALUE SHARES VALUE

Total Materials

MID-CAP 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

40 | See Notes to Financial Statements.

September 30, 2008

Hill-Rom Holdings, Inc. 1,000 $ 30,310 Patterson-UTI Energy, Inc. $ 50,250

Valeant Pharmaceuticals Oceaneering International, Inc.* 47,455

International* 1,410 28,863 Tidewater, Inc. 820 45,395

LifePoint Hospitals, Inc.* 850 27,319 Superior Energy Services* 40,171

Kinetic Concepts, Inc.* 910 26,017 Helix Energy Solutions Group, Inc.* 35,692

WellCare Health Plans, Inc.* 24,120 Quicksilver Resources, Inc.* 35,530

Varian, Inc.* 470 20,163 Encore Acquisition Co.* 850 35,513

PDL BioPharma, Inc. 1,910 17,782 Exterran Holdings, Inc.* 1,050 33,558

Health Management Associates, Frontier Oil Corp. 1,660 30,577

Inc. — Class A* 3,920 16,307 Patriot Coal Corp.* 1,020 29,631

Advanced Medical Optics, Inc.* 14,757 Overseas Shipholding Group, Inc. 25,073

Medicis Pharmaceutical Corp. — Bill Barrett Corp.* 590 18,945

Class A 910 13,568

Kindred Healthcare, Inc.* 480 13,234

Apria Healthcare Group, Inc.* 12,768

Affymetrix, Inc.* 1,130 8,746

1,793,191

FMC Corp. 1,200 61,668

MDU Resources Group, Inc. 84,970 Steel Dynamics, Inc. 2,860 48,877

Wisconsin Energy Corp. 1,870 83,963 Sonoco Products Co. 1,590 47,191

Equitable Resources, Inc. 77,028 Lubrizol Corp. 1,090 47,023

SCANA Corp. 1,870 72,799 Albemarle Corp. 1,460 45,026

Northeast Utilities 2,490 63,868 Terra Industries, Inc. 1,470 43,218

Oneok, Inc. 1,670 57,448 AptarGroup, Inc. 1,090 42,630

NSTAR 1,710 57,285 RPM International, Inc. 2,080 40,227

Alliant Energy Corp. 1,770 57,012 Reliance Steel & Aluminum Co. 38,729

Puget Energy, Inc. 2,080 55,536 Packaging Corporation of

National Fuel Gas Co. 1,300 54,834 America 1,660 38,479

Energen Corp. 1,150 52,072 Greif, Inc. — Class A 550 36,091

OGE Energy Corp. 1,470 45,394 Valspar Corp. 1,600 35,664

DPL, Inc. 1,820 45,136 Cabot Corp. 1,030 32,733

Great Plains Energy, Inc. 1,900 42,218 Commercial Metals Co. 1,840 31,078

Westar Energy, Inc. 1,730 39,859 Cytec Industries, Inc. 760 29,572

Hawaiian Electric Industries, Inc. 39,299 Temple-Inland, Inc. 1,700 25,942

AGL Resources, Inc. 1,230 38,597 Olin Corp. 1,200 23,280

Aqua America, Inc. 2,160 38,405 Sensient Technologies Corp. 21,660

Vectren Corp. 1,290 35,927 Carpenter Technology Corp. 18,212

Sierra Pacific Resources 3,750 35,925 Minerals Technologies, Inc. 17,808

WGL Holdings, Inc. 800 25,960 Chemtura Corp. 3,880 17,693

IDACORP, Inc. 720 20,945 Scotts Miracle-Gro Co. —

Black Hills Corp. 620 19,263 Class A 690 16,312

PNM Resources, Inc. 1,380 14,131 Worthington Industries, Inc. 14,342

Ferro Corp. 700 14,070

Louisiana-Pacific Corp. 1,450 13,485

1,030,982

Pride International, Inc.* 2,770 82,020

Arch Coal, Inc. 2,310 75,976 Energizer Holdings, Inc.* 930 74,912

Denbury Resources, Inc.* 75,399 Church & Dwight Co., Inc. 66,436

Helmerich & Payne, Inc. 1,690 72,991 Ralcorp Holdings, Inc.* 900 60,669

Forest Oil Corp.* 1,440 71,424 J.M. Smucker Co. 880 44,607

Newfield Exploration Co.* 67,819 Hormel Foods Corp. 1,120 40,634

Cimarex Energy Co. 1,330 65,050 Corn Products International, Inc. 38,413

Plains Exploration & Production BJ’s Wholesale Club, Inc.* 950 36,917

Co.* 1,720 60,475 Alberto-Culver Co. 1,350 36,774

1,093,906

Cleveland-Cliffs, Inc. 1,710 90,527

Martin Marietta Materials, Inc. 73,907

Airgas, Inc. 1,320 65,538

1,157,874

FMC Technologies, Inc.* 2,040 94,962

2,510

890

1,290

1,470

670

1,810

830

430

700

2,930

2,100

1,020

1,350

770

710

300

960

3,960

1,070

2,120

1,190

660

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

MID-CAP 1.5x STRATEGY FUND

MARKET

UNREALIZED

SHARES

VALUE

CONTRACTS

GAIN (LOSS)

Hansen Natural Corp.*

1,180

$

35,695

FUTURES CONTRACTS PURCHASED

Smithfield Foods, Inc.*

1,870

29,696

December 2008 S&P MidCap 400 Index

NBTY, Inc.*

870

25,682

Mini Futures Contracts

Ruddick Corp.

630

20,444

(Aggregate Market Value

Universal Corp.

410

20,127

of Contracts $10,888,500)

150

$

(767,535)

PepsiAmericas, Inc.

920

19,062

Lancaster Colony Corp.

320

12,051

UNITS

Tootsie Roll Industries, Inc.

410

11,853

Total Consumer Staples

573,972

EQUITY INDEX SWAP AGREEMENT

Credit Suisse Capital, LLC

TELECOMMUNICATION SERVICES 0.4%

December 2008 S&P MidCap 400 Index

Telephone & Data Systems, Inc.

1,710

61,133

Swap, Terminating 12/29/08**

Cincinnati Bell, Inc.*

3,770

11,649

(Notional Market Value

Total Telecommunication Services

72,782

$581,791)

800

$

—

Total Common Stocks

(Cost $15,567,212)

14,864,772

SECURITIES LENDING COLLATERAL 0.2%

Mount Vernon Securities

Lending Trust Prime

Portfolio (Note 9)

20,776

20,776

Total Securities Lending Collateral

(Cost $20,776)

20,776

FACE

AMOUNT

REPURCHASE AGREEMENTS 10.0%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$693,917

693,917

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

574,788

574,788

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

406,930

406,930

Credit Suisse Group

issued 09/30/08 at 0.25%

due 10/01/08††

83,233

83,233

Total Repurchase Agreements

(Cost $1,758,868)

1,758,868

Total Investments 95.0%

(Cost $17,346,856)

$16,644,416

Other Assets in Excess

of Liabilities – 5.0%

$

884,258

Net Assets – 100.0%

$17,528,674

* Non-Income Producing Security.

** Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2008.

REIT — Real Estate Investment Trust.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

41

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

INVERSE MID-CAP STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 74.0%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$ 1,417,025

$1,417,025

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

1,173,757

1,173,757

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

830,978

830,978

Credit Suisse Group

issued 09/30/08 at 0.25%

due 10/01/08†

310,453

310,453

Total Repurchase Agreements

(Cost $3,732,213)

3,732,213

Total Investments 74.0%

(Cost $3,732,213)

$3,732,213

Other Assets in Excess

of Liabilities – 26.0%

$1,312,448

Net Assets – 100.0%

$5,044,661

UNREALIZED

CONTRACTS

GAIN (LOSS)

FUTURES CONTRACTS SOLD SHORT

December 2008 S&P MidCap 400 Index

Mini Futures Contracts

(Aggregate Market Value

of Contracts $72,590)

1

$

(2,962)

UNITS

EQUITY INDEX SWAP AGREEMENT

SOLD SHORT

Credit Suisse Capital, LLC

December 2008 S&P MidCap 400 Index

Swap, Terminating 12/29/08*

(Notional Market Value

$5,028,356)

6,914

$

—

* Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.

† All or a portion of this security is pledged as equity index swap collateral at September 30, 2008.

42

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

MARKET MARKET

COMMON STOCKS 69.2%

FINANCIALS 14.9%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 43

September 30, 2008

Post Properties, Inc. 770 $ 21,537

Selective Insurance Group, Inc. 21,316

Extra Space Storage, Inc. 21,197

Senior Housing Properties Trust $ 47,422 Eastgroup Properties, Inc. 430 20,872

Realty Income Corp. 1,760 45,056 Cathay General Bancorp 860 20,468

Apollo Investment Corp. 2,470 42,113 Stifel Financial Corp.* 410 20,459

Aspen Insurance Holdings Ltd. 40,700 First Midwest Bancorp, Inc. 20,362

Highwoods Properties, Inc. 35,204 Delphi Financial Group, Inc. —

BioMed Realty Trust, Inc. 32,798 Class A 720 20,189

Home Properties, Inc. 550 31,872 National Penn Bancshares, Inc. 20,148

Potlatch Corp. 680 31,545 RLI Corp. 320 19,869

Washington Real Estate Investment MB Financial Corp. 600 19,842

Trust 860 31,502 Argo Group International Holdings

ProAssurance Corp.* 560 31,360 Ltd.* 530 19,530

National Retail Properties, Inc. 30,416 Cousins Properties, Inc. 760 19,175

Platinum Underwriters Holdings First Financial Bankshares, Inc. 18,677

Ltd. 850 30,158 Equity Lifestyle Properties, Inc. 18,560

SVB Financial Group* 520 30,118 Odyssey Re Holdings Corp. 18,396

First Niagara Financial Group, Inc. 29,925 Phoenix Companies, Inc. 18,388

Hilb Rogal & Hobbs Co. 630 29,446 Cash America International, Inc. 18,380

FirstMerit Corp. 1,400 29,400 Signature Bank* 520 18,138

Susquehanna Bancshares, Inc.† 29,085 Trustmark Corp. 860 17,836

Entertainment Properties Trust 29,002 Ares Capital Corp. 1,690 17,627

Westamerica Bancorporation 28,765 Provident Financial Services, Inc. 17,170

UMB Financial Corp. 540 28,361 First Commonwealth Financial

NewAlliance Bancshares, Inc. 28,256 Corp. 1,270 17,107

Colonial BancGroup, Inc. 27,510 Sovran Self Storage, Inc. 380 16,982

Corporate Office Properties Trust NBT Bancorp, Inc. 560 16,755

SBI 670 27,034 LaSalle Hotel Properties 700 16,324

Montpelier Re Holdings Ltd. 26,746 Pacific Capital Bancorp† 800 16,280

IPC Holdings Ltd. 870 26,283 CVB Financial Corp. 1,150 15,985

Validus Holdings Ltd. 1,120 26,040 Assured Guaranty Ltd. 970 15,772

Omega Healthcare Investors, Inc. 25,755 Inland Real Estate Corp. 990 15,533

Healthcare Realty Trust, Inc. 25,652 Interactive Brokers Group, Inc. —

American Campus Communities, Class A* 700 15,519

Inc. 730 24,732 Lexington Realty Trust 900 15,498

Knight Capital Group, Inc. — PrivateBancorp, Inc. 370 15,414

Class A* 1,630 24,222 TrustCo Bank Corp. 1,310 15,340

Tanger Factory Outlet Centers, Inc. 24,084 Colonial Properties Trust 820 15,326

International Bancshares Corp. 24,030 Umpqua Holding Corp. 1,040 15,298

Zenith National Insurance Corp. 23,816 S&T Bancorp, Inc.† 410 15,100

FNB Corp. 1,490 23,810 East-West Bancorp, Inc. 1,100 15,070

Glacier Bancorp, Inc. 940 23,284 PS Business Parks, Inc. 260 14,976

Prosperity Bancshares, Inc. 23,113 Employers Holdings, Inc. 860 14,947

United Bankshares, Inc. 660 23,100 DiamondRock Hospitality Co. 14,924

Old National Bancorp 1,150 23,023 KBW, Inc.* 450 14,823

Hancock Holding Co. 450 22,950 Park National Corp. 190 14,820

Max Capital Group Ltd. 980 22,765 Piper Jaffray Companies, Inc.* 14,272

Mid-America Apartment optionsXpress Holdings, Inc. 14,177

Communities, Inc. 460 22,604 Acadia Realty Trust 560 14,157

DCT Industrial Trust, Inc. 2,980 22,320 First Bancorp Puerto Rico 13,604

MFA Mortgage Investments, Inc. 22,295 Navigators Group, Inc.* 230 13,340

Greenhill & Co., Inc. 300 22,125 National Health Investors, Inc. 13,330

First Industrial Realty Trust, Inc.† 22,084 Sterling Bancshares, Inc. 1,270 13,271

930

1,380

1,990

1,480

840

990

1,240

1,380

1,270

360

350

420

1,900

1,990

510

1,490

530

500

1,040

1,880

3,500

1,620

1,310

880

550

890

650

680

1,640

330

730

1,230

3,430

390

770

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

44 | See Notes to Financial Statements.

September 30, 2008

Franklin Street Properties Corp., Cedar Shopping Centers, Inc. $ 8,725

Inc. 1,020 $ 13,260 Harleysville Group, Inc. 230 8,694

Community Bank System, Inc. 13,078 Simmons First National Corp. 8,544

Medical Properties Trust Inc. 13,052 Texas Capital Bancshares, Inc.* 8,512

Sterling Savings Bank 900 13,050 SWS Group, Inc. 420 8,467

Brookline Bancorp, Inc. 1,010 12,918 Anworth Mortgage Asset Corp. 8,466

Chemical Financial Corp. 410 12,767 Ashford Hospitality Trust, Inc. 8,424

Portfolio Recovery Associates, Inc.* 12,644 Central Pacific Financial Corp.† 8,405

Ezcorp, Inc. — Class A* 670 12,596 Boston Private Financial Holdings,

Redwood Trust, Inc. 570 12,386 Inc. 950 8,303

UCBH Holdings, Inc. 1,920 12,307 Northwest Bancorp, Inc. 300 8,262

WesBanco, Inc. 460 12,245 Tower Group, Inc. 350 8,246

Wintrust Financial Corp. 410 12,033 Cohen & Steers, Inc. 290 8,216

Sunstone Hotel Investors, Inc. 12,015 Universal Health Realty Income

Pinnacle Financial Partners, Inc.* 12,012 Trust 210 8,169

PacWest Bancorp 420 12,008 Univest Corp. of Pennsylvania 8,140

Alexander’s, Inc.* 30 12,000 Saul Centers, Inc. 160 8,086

City Holding Co. 280 11,830 First Busey Corp. 440 8,065

LTC Properties, Inc. 400 11,728 StellarOne Corp. 390 8,061

IBERIABANK Corp. 220 11,627 Hilltop Holdings, Inc.* 780 8,050

Ambac Financial Group, Inc. 11,603 Aircastle Ltd. 810 8,027

Pennsylvania Real Estate TowneBank 360 7,920

Investment Trust 610 11,498 Renasant Corp. 360 7,816

Greenlight Capital Re Ltd. — FelCor Lodging Trust, Inc. 7,804

Class A* 500 11,495 GAMCO Investors, Inc. — Class A 7,709

Equity One, Inc. 560 11,474 Oriental Financial Group 420 7,501

Investors Bancorp, Inc.* 760 11,438 NorthStar Realty Finance Corp. 7,440

Investors Real Estate Trust 11,190 First Merchants Corp. 320 7,296

United Fire & Casualty Co. 11,150 State Auto Financial Corp. 7,267

Infinity Property & Casualty Corp. 11,124 Riskmetrics Group, Inc.* 370 7,241

Frontier Financial Corp.† 820 11,013 First Potomac Realty Trust 420 7,220

Capstead Mortgage Corp. 10,731 Beneficial Mutual Bancorp, Inc.* 7,210

Safety Insurance Group, Inc. 10,620 FPIC Insurance Group, Inc.* 7,195

U-Store-It Trust 860 10,552 American Equity Investment Life

National Financial Partners Corp. 10,350 Holding Co. 950 7,125

Parkway Properties, Inc. 270 10,222 Capital Southwest Corp. 50 7,102

Financial Federal Corp. 440 10,085 Tejon Ranch Co. De* 190 7,058

World Acceptance Corp.* 280 10,080 Radian Group, Inc. 1,400 7,056

Pico Holdings, Inc.* 280 10,055 SY Bancorp, Inc. 230 7,043

Strategic Hotels & Resorts, Inc. 9,739 FCStone Group, Inc.* 390 7,016

Enstar Group* 100 9,736 Glimcher Realty Trust 660 6,890

National Western Life Insurance eHealth, Inc.* 430 6,880

Co. — Class A 40 9,683 Meadowbrook Insurance Group,

Bank Mutual Corp. 840 9,534 Inc. 960 6,778

First Financial Bancorp 650 9,490 Banco Latinoamericano de

First Financial Corp. 200 9,396 Exportaciones SA 470 6,777

United Community Banks, Inc. 9,293 SCBT Financial Corp. 180 6,768

Provident New York Bancorp 9,254 Urstadt Biddle Properties, Inc. 6,750

South Financial Group, Inc. 9,236 Suffolk Bancorp 170 6,700

Harleysville National Corp. 9,169 Getty Realty Corp. 300 6,651

Forestar Real Estate Group, Inc.* 9,145 WSFS Financial Corp. 110 6,600

Horace Mann Educators Corp. 9,009 LandAmerica Financial Group, Inc. 6,547

Community Trust Bancorp, Inc. 8,944 Flushing Financial Corp. 370 6,475

Stewart Information Services Corp. 8,925 Dollar Financial Corp.* 420 6,464

Independent Bank Corp. 280 8,728 Castlepoint Holdings Ltd. 580 6,455

660

520

240

1,150

410

1,430

2,080

260

500

890

390

220

4,980

1,090

130

960

1,000

390

250

270

980

570

280

140

690

1,290

701

700

360

1,260

540

620

700

270

260

300

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 45

September 30, 2008

MVC Capital, Inc. 420 $ 6,405 Ocwen Financial Corp.* 620 $ 4,991

Crawford & Co. — Class B* 6,384 Capitol Bancorp, Ltd. 250 4,872

American Physicians Capital, Inc. 6,349 Republic Bancorp, Inc. 160 4,851

Bancfirst Corp. 130 6,283 PMA Capital Corp.* 550 4,851

Calamos Asset Management, CNA Surety Corp.* 290 4,843

Inc. — Class A 350 6,272 SeaBright Insurance Holdings, Inc.* 4,810

MainSource Financial Group, Inc. 6,272 Arrow Financial Corp. 160 4,706

Capital City Bank Group, Inc. 6,270 Peapack Gladstone Financial Corp. 4,690

Hersha Hospitality Trust 840 6,250 Hatteras Financial Corp. 200 4,640

Dime Community Bancshares 6,240 Lakeland Financial Corp. 210 4,612

Sandy Spring Bancorp, Inc. 6,188 United Financial Bancorp, Inc. 4,603

CapLease, Inc. 780 6,185 United America Indemnity Ltd. —

FBL Financial Group, Inc. — Class A 6,136 Class A* 320 4,554

1st Source Corp. 260 6,110 Camden National Corp. 130 4,544

Ramco-Gershenson Properties Trust 6,053 Capital Trust, Inc. — Class A 4,495

Amerisafe, Inc.* 330 6,006 Sterling Bancorp† 310 4,483

First Community Bancshares, Inc. 6,003 Nara Bancorp, Inc. 400 4,480

Presidential Life Corp. 380 6,000 Old Second Bancorp, Inc.† 4,445

Home Bancshares, Inc. 230 5,950 Southwest Bancorp, Inc. 250 4,418

RAIT Financial Trust 1,080 5,929 MarketAxess Holdings, Inc.* 4,358

Prospect Capital Corp. 460 5,893 Enterprise Financial Services Corp. 4,286

Newcastle Investment Corp. 5,842 First Bancorp 250 4,275

Heartland Financial USA, Inc. 5,764 Westwood Holdings Group, Inc. 4,266

Berkshire Hills Bancorp, Inc. 5,760 Nelnet, Inc. — Class A 300 4,260

Sun Communities, Inc. 290 5,745 Abington Bancorp, Inc. 420 4,250

Compass Diversified Trust 410 5,715 The PMI Group, Inc.† 1,410 4,160

Bank of the Ozarks, Inc. 210 5,670 Thomas Properties Group, Inc. 4,141

Westfield Financial, Inc. 550 5,665 First Financial Northwest, Inc. 4,128

Gladstone Capital Corp. 370 5,639 Northfield Bancorp, Inc.* 340 4,117

Provident Bankshares Corp. 5,632 Lakeland Bancorp, Inc. 350 4,092

Guaranty Bancorp* 910 5,551 Darwin Professional Underwriters,

NGP Capital Resources Co. 5,537 Inc.* 130 4,044

Hercules Technology Growth Capital, ESSA Bancorp, Inc. 290 4,031

Inc. 570 5,529 Penson Worldwide Co., Inc.* 4,022

Union Bankshares Corp. 230 5,520 Wilshire Bancorp, Inc. 330 4,016

Columbia Banking Systems, Inc.† 5,496 LaBranche & Co., Inc.* 890 4,005

Anthracite Capital, Inc. 1,020 5,467 Agree Realty Corp. 140 4,004

Advanta Corp. 660 5,432 CoBiz Financial, Inc. 330 3,963

Education Realty Trust, Inc. 5,429 West Coast Bancorp 270 3,958

GFI Group, Inc. 1,150 5,416 Danvers Bancorp, Inc. 310 3,953

Green Bankshares, Inc. 230 5,407 BancTrust Financial Group, Inc. 3,936

Citizens, Inc.* 650 5,343 Maguire Properties, Inc. 660 3,934

Flagstone Reinsurance Holdings 5,340 Peoples Bancorp, Inc. 180 3,919

Washington Trust Bancorp, Inc. 5,320 West Bancorporation, Inc. 300 3,909

Southside Bancshares, Inc. 5,292 Consolidated-Tomoka Land Co. 3,887

First Financial Holdings, Inc. 5,236 Oritani Financial Corp.* 230 3,876

TradeStation Group, Inc.* 560 5,236 Shore Bancshares, Inc. 150 3,855

Triko Bancshares 240 5,167 Kite Realty Group Trust 350 3,850

Friedman Billings Ramsey Group, Smithtown Bancorp, Inc. 170 3,825

Inc. — Class A* 2,570 5,140 Financial Institutions, Inc. 190 3,802

Citizens Banking Corp. 1,660 5,113 Kearny Financial Corp. 310 3,794

Western Alliance Bancorp, Inc.* 5,102 Winthrop Realty Trust 970 3,783

First Cash Financial Services, Inc.* 5,100 City Bank 240 3,744

Tompkins Financial Corp. 100 5,050 First Place Financial Corp. 290 3,727

BankFinancial Corp. 340 4,991 State Bancorp, Inc. 250 3,725

420

150

370

320

200

140

410

280

310

220

270

290

160

240

540

190

920

230

90

180

410

400

580

380

290

310

490

300

520

200

210

90

200

330

340

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

46 | See Notes to Financial Statements.

September 30, 2008

Maiden Holdings Ltd. 850 $ 3,698 American Safety Insurance

Kansas City Life Insurance Co. 3,680 Holdings Ltd.* 180 $ 2,720

Amtrust Financial Services, Inc. 3,669 Oceanfirst Financial Corp. 150 2,718

Chimera Investment Corp. 3,664 Sierra Bancorp 130 2,712

Donegal Group, Inc. — Class A 3,626 Pennsylvania Commerce Bancorp,

Life Partners Holdings, Inc. 3,597 Inc.* 90 2,683

Diamond Hill Investment Group, Flagstar Bancorp, Inc. 900 2,682

Inc.* 40 3,597 BlackRock Kelso Capital Corp. 2,652

Baldwind & Lyons, Inc. — Class B 3,596 Monmouth Real Estate Investment

Ameris Bancorp 240 3,564 Corp. — Class A 340 2,649

First Mercury Financial Corp.* 3,563 National Interstate Corp. 110 2,643

Cascade Bancorp. 390 3,467 Care Investment Trust, Inc. 2,640

Citizens & Northern Corp. 160 3,448 Bryn Mawr Bank Corp. 120 2,638

MCG Capital Corp. 1,310 3,432 Corus Bankshares, Inc. 650 2,633

NewStar Financial, Inc.* 420 3,398 Gladstone Investment Corp. 2,614

Cardinal Financial Corp. 420 3,394 Kohlberg Capital Corp. 300 2,577

Yadkin Valley Financial Corp. 3,392 Guaranty Financial Group, Inc.* 2,568

Sun Bancorp, Inc.* 250 3,388 AmCOMP, Inc.* 220 2,552

Quanta Capital Holdings Ltd. 3,367 Arbor Realty Trust, Inc. 250 2,500

ViewPoint Financial Group 3,325 BGC Partners, Inc. - Class A 2,488

Mission West Properties 340 3,312 One Liberty Properties, Inc. 2,474

Encore Capital Group, Inc.* 3,288 United Security Bancshares 2,454

Hanmi Financial Corp. 650 3,283 Anchor BanCorp Wisconsin, Inc. 2,426

Associated Estates Realty Corp. 3,258 First South Bancorp, Inc.† 140 2,418

Amcore Financial, Inc. 350 3,238 Rockville Financial, Inc. 150 2,363

DuPont Fabros Technology, Inc. 3,203 United Community Financial Corp. 2,300

Ladenburg Thalmann Financial Patriot Capital Funding, Inc. 2,293

Services, Inc.* 1,770 3,186 Resource Capital Corp. 370 2,242

FBR Capital Markets Corp.* 3,110 Roma Financial Corp. 150 2,213

Evercore Partners, Inc. — Class A 3,057 US Global Investors, Inc. — Class A 2,211

Stratus Properties, Inc.* 110 3,027 Advance America Cash Advance

First Marblehead Corp. 1,200 2,988 Centers, Inc. 730 2,183

Farmers Capital Bank Corp. 2,972 Clifton Savings Bancorp, Inc. 2,158

EMC Insurance Group, Inc. 2,948 NYMAGIC, Inc. 80 2,020

American Capital Agency Corp. 2,944 Encore Bancshares, Inc.* 110 1,980

Sanders Morris Harris Group Inc. 2,941 NASB Financial, Inc. 60 1,949

First Bancorp, Inc. 150 2,940 Epoch Holding Corp. 180 1,899

Cogdell Spencer, Inc. 180 2,887 FirstFed Financial Corp.*† 240 1,882

Banner Corp. 240 2,882 JER Investors Trust, Inc. 390 1,880

Kayne Anderson Energy Gramercy Capital Corp. 720 1,865

Development Co. 170 2,878 Meridian Interstate Bancorp, Inc.* 1,838

Integra Bank Corp. 360 2,873 Credit Acceptance Corp.* 100 1,700

Harris & Harris Group, Inc.* 2,871 International Assets Holding Corp.* 1,688

Thomas Weisel Partners Group, Cardtronics, Inc.* 210 1,651

Inc.* 340 2,866 Grubb & Ellis Co. 600 1,620

Centerstate Banks of Florida, Inc. 2,859 Resource America, Inc. — Class A 1,615

Ames National Corp. 110 2,855 Midwest Banc Holdings, Inc. 1,560

Seacoast Banking Corporation of Home Federal Bancorp, Inc. 1,403

Florida 260 2,790 Fox Chase Bancorp, Inc.* 110 1,287

Pacific Continental Corp. 190 2,782 Independence Holding Co. 1,271

Premierwest Bancorp 340 2,744 Broadpoint Securities Group, Inc.* 1,218

PennantPark Investment Corp. 2,742 Waterstone Financial, Inc.* 1,172

Asset Acceptance Capital Corp.* 2,740 CompuCredit Corp.*† 280 1,098

Heritage Commerce Corp. 2,740 W Holding Co., Inc. 1,980 1,069

Medallion Financial Corp. 260 2,722 Ampal American Israel — Class A* 1,051

80

270

590

200

100

230

150

250

230

380

200

650

1,220

190

580

140

240

150

330

250

210

460

360

480

170

220

110

180

100

170

340

180

450

70

160

170

390

110

110

420

370

120

260

180

340

MARKET MARKET

Total Financials

INFORMATION TECHNOLOGY 11.7%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 47

September 30, 2008

Primus Guaranty Ltd.* 400 $ 1,048 Progress Software Corp.* 720 $ 18,713

Pzena Investment Management, j2 Global Communications, Inc.* 17,979

Inc. — Class A 110 1,043 Mentor Graphics Corp.* 1,580 17,933

First Acceptance Corp.* 300 1,020 Synaptics, Inc.* 585 17,679

Doral Financial Corp.* 90 983 Websense, Inc.* 780 17,433

Downey Financial Corp. 350 980 Net 1 UEPS Technologies, Inc.* 17,417

Hallmark Financial Services, Inc.* 909 L-1 Identity Solutions, Inc.* 17,266

Meruelo Maddux Properties, Inc.* 903 MKS Instruments, Inc.* 860 17,123

Brooklyn Federal Bancorp, Inc. 887 SRA International, Inc. — Class A* 16,746

Santander BanCorp 80 864 MPS Group, Inc.* 1,640 16,531

Federal Agricultural Mortgage Benchmark Electronics, Inc.* 16,474

Corp. 160 656 Arris Group, Inc.* 2,130 16,465

FX Real Estate and Entertainment, 3Com Corp.* 7,000 16,310

Inc.* 180 187 EarthLink, Inc.* 1,900 16,150

Quest Software, Inc.* 1,260 15,989

Avocent Corp.* 780 15,959

Rofin-Sinar Technologies, Inc.* 15,917

Tekelec* 1,130 15,809

Emulex Corp.* 1,460 15,578

Infinera Corp.* 1,610 15,392

ValueClick, Inc.* 1,500 15,345

Lawson Software, Inc.* 2,190 15,330

FEI Co.* 630 15,000

Semtech Corp.* 1,070 14,937

Formfactor, Inc.* 850 14,807

Cognex Corp. 730 14,717

Coherent, Inc.* 410 14,575

Blackbaud, Inc. 780 14,391

Plexus Corp.* 690 14,283

THQ, Inc.* 1,160 13,966

Harmonic, Inc.* 1,630 13,773

Tessera Technologies, Inc.* 13,726

Euronet Worldwide, Inc.* 820 13,719

Cymer, Inc.* 530 13,425

RF Micro Devices, Inc.* 4,560 13,315

Acxiom Corp. 1,060 13,292

Scansource, Inc.* 460 13,243

Cabot Microelectronics Corp.* 13,153

Checkpoint Systems, Inc.* 690 12,986

TiVo, Inc.* 1,770 12,956

Sanmina-SCI Corp.* 9,200 12,880

Electronics for Imaging, Inc.* 12,816

Power Integrations, Inc.* 530 12,773

Data Domain, Inc.* 570 12,694

Quality Systems, Inc. 300 12,678

MTS Systems Corp. 300 12,630

United Online, Inc. 1,340 12,609

SYKES Enterprises, Inc.* 570 12,517

Avid Technology, Inc.* 520 12,511

Wind River Systems, Inc.* 12,500

DealerTrack Holdings, Inc.* 12,462

Riverbed Technology, Inc.* 12,144

Amkor Technology, Inc.* 1,890 12,039

Triquint Semiconductor, Inc.* 11,927

MAXIMUS, Inc. 320 11,789

3,856,092

Foundry Networks, Inc.* 2,530 46,071

Sybase, Inc.* 1,380 42,256

Micros Systems, Inc.* 1,410 37,591

Parametric Technology Corp.* 36,800

Polycom, Inc.* 1,520 35,158

Microsemi Corp.* 1,360 34,653

Anixter International, Inc.* 520 30,945

Concur Technologies, Inc.* 28,695

PMC - Sierra, Inc.* 3,800 28,196

Jack Henry & Associates, Inc. 26,429

CACI International, Inc. — Class A* 26,052

Perot Systems Corp. — Class A* 26,025

Solera Holdings, Inc.* 900 25,848

VistaPrint Ltd.* 770 25,287

Atheros Communications, Inc.* 24,287

TIBCO Software, Inc.* 3,240 23,717

Skyworks Solutions, Inc.* 23,659

Gartner, Inc. — Class A* 1,030 23,360

Macrovision Solutions Corp.* 21,993

Take-Two Interactive Software,

Inc. 1,330 21,812

Blackboard, Inc.* 540 21,757

Mantech International Corp. —

Class A* 360 21,344

Intermec, Inc.* 1,070 21,015

Ariba, Inc.* 1,480 20,912

Digital River, Inc.* 640 20,736

Comtech Telecommunications

Corp.* 420 20,681

Informatica Corp.* 1,540 20,005

Wright Express Corp.* 670 19,999

Omniture, Inc.* 1,080 19,829

VeriFone Holdings, Inc.* 1,190 19,683

Fair Isaac Corp. 840 19,362

Cybersource Corp.* 1,200 19,332

Plantronics, Inc. 850 19,142

InterDigital, Inc.* 790 18,999

ADTRAN, Inc. 970 18,905

770

780

100

1,130

740

60

740

1,170

520

840

410

920

1,250

740

970

2,490

2,000

750

1,300

520

1,500

1,030

2,830

1,430

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

48 | See Notes to Financial Statements.

September 30, 2008

Imation Corp. 520 $ 11,747 Micrel, Inc. 860 $ 7,800

Ultimate Software Group, Inc.* 11,610 Ness Technologies, Inc.* 680 7,800

Rogers Corp.* 310 11,464 Advanced Energy Industries, Inc.* 7,798

Hittite Microwave Corp.* 340 11,424 Cavium Networks, Inc.* 530 7,462

Littelfuse, Inc.* 380 11,297 CTS Corp. 580 7,412

Sapient Corp.* 1,520 11,294 Zoran Corp.* 900 7,344

Interwoven, Inc.* 790 11,155 TTM Technologies, Inc.* 740 7,341

Palm, Inc. 1,860 11,104 Cogent, Inc.* 710 7,256

Insight Enterprises, Inc.* 810 10,862 Netezza Corp.* 680 7,215

Heartland Payment Systems, Inc. 10,735 Finisar Corp.* 6,850 6,918

Sycamore Networks, Inc.* 10,724 SI International, Inc.* 230 6,911

CSG Systems International, Inc.* 10,693 Adaptec, Inc.* 2,100 6,888

ACI Worldwide, Inc.* 600 10,512 JDA Software Group, Inc.* 6,844

Technitrol, Inc. 710 10,501 Extreme Networks, Inc.* 2,020 6,807

ViaSat, Inc.* 440 10,375 China Security & Surveillance

Black Box Corp. 300 10,359 Technology, Inc.* 490 6,801

Advent Software, Inc.* 290 10,217 Silicon Image, Inc.* 1,270 6,782

Sonus Networks, Inc.* 3,540 10,195 Starent Networks Corp.* 520 6,729

OmniVision Technologies, Inc.* 10,155 SYNNEX Corp.* 300 6,702

ATMI, Inc.* 560 10,069 Applied Micro Circuits Corp.* 6,698

Tyler Technologies, Inc.* 660 10,012 Newport Corp.* 620 6,684

Mastec, Inc.* 750 9,967 Electro Scientific Industries, Inc.* 6,683

Standard Microsystems Corp.* 9,742 Sigma Designs, Inc.* 460 6,541

Manhattan Associates, Inc.* 9,606 InfoSpace, Inc. 600 6,510

Entegris, Inc.* 1,980 9,583 Ciber, Inc.* 930 6,501

MicroStrategy, Inc. — Class A* 9,525 Utstarcom, Inc.* 1,920 6,470

Vocus, Inc.* 280 9,509 IPG Photonics Corp.* 330 6,438

Daktronics, Inc. 570 9,496 OSI SYSTEMS INC* 270 6,348

Diodes, Inc.* 500 9,225 Cohu, Inc. 400 6,328

Brooks Automation, Inc.* 9,196 Terremark Worldwide, Inc.* 6,320

Netgear, Inc.* 610 9,150 Stratasys, Inc.*† 360 6,289

Dycom Industries, Inc.* 700 9,114 Emcore Corp.*† 1,270 6,274

SPSS, Inc.* 310 9,102 Brightpoint, Inc.* 870 6,264

Netlogic Microsystems, Inc.* 9,072 Cirrus Logic, Inc.* 1,130 6,158

Powerwave Technologies, Inc.* 9,029 RightNow Technologies, Inc.* 6,034

MercadoLibre, Inc.* 440 8,954 EMS Technologies, Inc.* 270 6,024

Taleo Corp.* 450 8,950 Integral Systems, Inc.* 290 6,023

Commvault Systems, Inc.* 740 8,917 Bel Fuse, Inc. — Class B 210 5,979

SAVVIS, Inc.* 650 8,736 Constant Contact, Inc.* 350 5,974

DTS, Inc. — Class A* 310 8,627 Faro Technologies, Inc.* 290 5,907

Bankrate, Inc.* 220 8,560 Methode Electronics, Inc. —

Park Electrochemical Corp. 8,484 Class A 660 5,900

MSC.Software Corp.* 780 8,346 Symyx Technologies, Inc.* 580 5,748

EPIQ Systems, Inc.* 610 8,296 Volterra Semiconductor Corp.* 5,601

ModusLink Global Solutions, Inc.* 8,168 AsiaInfo Holdings, Inc.* 600 5,508

Veeco Instruments, Inc.* 550 8,145 Actel Corp.* 440 5,491

TNS, Inc.* 420 8,135 Universal Display Corp.* 500 5,480

Epicor Software Corp.* 1,030 8,127 comScore, Inc.* 310 5,465

Blue Coat Systems, Inc.* 570 8,088 Ixia* 740 5,454

Greenfield Online, Inc.* 460 8,004 Internet Capital Group, Inc.* 5,434

RealNetworks, Inc.* 1,570 7,976 Netscout Systems, Inc.* 510 5,426

Forrester Research, Inc.* 270 7,916 Syntel, Inc. 220 5,390

Art Technology Group, Inc.* 7,850 Neutral Tandem, Inc.* 290 5,377

Monolithic Power Systems, Inc.* 7,816 Supertex, Inc.* 190 5,350

430

570

420

3,320

610

450

890

1,120

470

390

430

160

1,100

920

300

2,280

480

350

440

850

670

2,230

450

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 49

September 30, 2008

S1 Corp.* 860 $ 5,263 Actuate Corp.* 1,050 $ 3,675

Seachange International, Inc.* 5,216 Eagle Test Systems, Inc.* 240 3,674

Secure Computing Corp.* 920 5,042 Advanced Analogic Technologies,

Echelon Corp.* 510 5,039 Inc.* 790 3,674

LoopNet, Inc.* 510 5,013 Perficient, Inc.* 550 3,652

Rackable Systems, Inc.* 510 5,003 i2 Technologies, Inc.* 270 3,642

Exar Corp.* 650 4,979 Synchronoss Technologies, Inc.* 3,576

Ultratech, Inc.* 410 4,961 Global Cash Access Holdings, Inc.* 3,542

SonicWALL, Inc.* 930 4,873 FalconStor Software, Inc.* 660 3,538

Vasco Data Security International* 4,869 Mercury Computer Systems, Inc.* 3,471

NIC, Inc. 690 4,761 Harris Stratex Networks, Inc. —

Photon Dynamics, Inc.* 310 4,758 Class A* 440 3,436

Hutchinson Technology, Inc.* 4,748 Spansion, Inc.* 2,210 3,426

Move, Inc.* 2,230 4,728 Super Micro Computer, Inc.* 3,424

Silicon Storage Technology, Inc.* 4,727 Transmeta Corp.* 210 3,404

Aruba Networks, Inc.* 910 4,668 Zygo Corp., Inc.* 270 3,397

Vignette Corp.* 430 4,618 Radisys Corp.* 390 3,354

Digi International, Inc.* 450 4,590 Novatel Wireless, Inc.* 550 3,333

SuccessFactors, Inc.* 420 4,578 iGate Corp.* 380 3,295

Switch & Data Facilities Co., Inc.* 4,482 Pegasystems, Inc. 250 3,228

Rudolph Technologies, Inc.* 4,441 DSP Group, Inc.* 420 3,213

Hughes Communications, Inc.* 4,404 MRV Communications, Inc.* 3,194

Measurement Specialties, Inc.* 4,360 Semitool, Inc.* 390 3,190

Oplink Communications, Inc.* 4,345 Keynote Systems, Inc.* 240 3,180

ShoreTel, Inc.* 750 4,305 NCI, Inc.* 110 3,133

Cass Information Systems, Inc. 4,302 Immersion Corp.* 530 3,085

Maxwell Technologies, Inc.* 4,269 PC-Tel, Inc. 330 3,076

Marchex, Inc. 410 4,219 DemandTec, Inc.* 340 3,063

Kulicke & Soffa Industries, Inc.* 4,194 Anadigics, Inc.* 1,090 3,063

Radiant Systems, Inc.* 480 4,171 Globecomm Systems, Inc.* 3,059

Lattice Semiconductor Corp.* 4,120 Magma Design Automation, Inc.* 3,055

The Knot, Inc.* 490 4,092 DivX, Inc.* 470 3,041

STEC, Inc.*† 530 4,081 3PAR, Inc.* 470 3,032

Mattson Technology, Inc.* 860 4,068 Internap Network Services Corp.* 3,028

Intevac, Inc.* 380 4,043 Axcelis Technologies, Inc.* 3,026

TeleCommunication Systems, Double-Take Software, Inc.* 2,985

Inc. — Class A* 580 4,008 Compellent Technologies, Inc.* 2,976

Parkervision, Inc.* 400 4,000 Loral Space & Communications,

Pericom Semiconductor Corp.* 3,990 Inc.* 200 2,954

Symmetricom, Inc.* 800 3,976 Cray, Inc.* 570 2,953

Bottomline Technologies, Inc.* 3,952 Gevity HR, Inc. 400 2,912

Agilysys, Inc. 390 3,935 Ceva, Inc.* 350 2,905

Online Resources Corp.* 500 3,885 Monotype Imaging Holdings, Inc.* 2,894

Hackett Group, Inc.* 710 3,862 Opnet Technologies, Inc.* 230 2,801

Phoenix Technologies, Ltd.* 3,835 Liquidity Services Inc.* 250 2,713

IXYS Corp. 420 3,818 Orbcomm, Inc.* 550 2,712

LTX-Credence Corp.* 2,170 3,776 Presstek, Inc.* 480 2,707

infoGROUP, Inc. 570 3,768 MIPS Technology, Inc.* 770 2,703

Smith Micro Software, Inc.* 3,763 Acme Packet, Inc.* 470 2,693

Ebix, Inc.* 40 3,758 Chordiant Software, Inc.* 520 2,668

Quantum Corp.* 3,570 3,749 Internet Brands, Inc. — Class A* 2,649

Gerber Scientific, Inc.* 410 3,747 Safeguard Scientifics, Inc.* 2,638

Kopin Corp.* 1,200 3,744 Website Pros, Inc.* 480 2,592

Hypercom Corp.* 930 3,701 Sourcefire, Inc.* 350 2,552

540

380

700

470

390

410

380

1,450

360

530

120

2,730

250

360

120

320

930

350

2,000

760

870

1,780

300

240

380

380

260

480

530

380

2,110

MARKET MARKET

Total Information Technology

INDUSTRIALS 11.0%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

50 | See Notes to Financial Statements.

September 30, 2008

Techwell, Inc.* 270 $ 2,546 Midway Games, Inc.* 200 $ 474

Trident Microsystems, Inc.* 2,544 Elixir Gaming Technologies, Inc.* 386

Anaren, Inc.* 250 2,538 Entropic Communications, Inc.* 226

Microtune, Inc.* 940 2,519

PLX Technology, Inc.* 490 2,509

Airvana, Inc.* 420 2,474

CPI International, Inc.* 170 2,462

SupportSoft, Inc.* 800 2,400

Rimage Corp.* 170 2,373

Cogo Group, Inc.* 450 2,372

Smart Modular Technologies WWH,

Inc.* 770 2,310

Entrust, Inc.* 1,060 2,279

NVE Corp.* 80 2,265

Multi-Fineline Electronix, Inc.* 2,219

Renaissance Learning, Inc. 170 2,208

ExlService Holdings, Inc.* 250 2,195

Interactive Intelligence, Inc.* 2,165

NetSuite, Inc.* 120 2,162

OpenTV Corp.* 1,510 2,129

American Software, Inc. — Class A 2,126

BigBand Networks, Inc.* 570 2,103

PROS Holdings, Inc.* 220 2,066

Asyst Technologies, Inc.* 860 2,064

Callidus Software, Inc.* 520 2,059

KEMET Corp.* 1,460 1,986

Bookham, Inc.* 1,750 1,978

Dice Holdings, Inc.* 270 1,917

TheStreet.com, Inc. 320 1,917

Isilon Systems, Inc.* 430 1,896

Unica Corp.* 240 1,882

China Information Security

Technology, Inc.* 400 1,880

ICx Technologies, Inc.* 240 1,850

Comverge, Inc.* 380 1,748

Ultra Clean Holdings* 340 1,714

TechTarget, Inc.* 240 1,680

Sonic Solutions, Inc.* 380 1,672

Rubicon Technology, Inc.* 230 1,661

SiRF Technology Holdings, Inc.* 1,565

QAD, Inc. 220 1,522

Opnext, Inc.* 330 1,515

Photronics, Inc.* 730 1,372

Deltek, Inc.* 220 1,338

PC Mall, Inc.* 190 1,298

Limelight Networks Inc.* 500 1,250

HSW International, Inc.* 480 1,248

Avanex Corp.* 230 1,076

PC Connection, Inc.* 160 1,070

Virtusa Corp.* 150 977

AuthenTec, Inc.* 430 925

ArcSight, Inc.* 120 916

Bidz.com, Inc.* 100 866

Guidance Software, Inc.* 160 750

Nextwave Wireless, Inc.* 840 504

3,029,031

Energy Conversion Devices, Inc.* 45,435

Wabtec Corp. 840 43,033

Waste Connections, Inc.* 39,445

Watson Wyatt & Co. Holdings 36,800

Woodward Governor Co. 35,975

Curtiss-Wright Corp. 780 35,451

Teledyne Technologies, Inc.* 34,868

Clarcor, Inc. 880 33,396

Moog, Inc. — Class A* 740 31,731

GrafTech International Ltd.* 31,278

EMCOR Group, Inc.* 1,180 31,058

Brady Corp. — Class A 870 30,694

Acuity Brands, Inc. 700 29,232

Nordson Corp. 580 28,484

Tetra Tech, Inc.* 1,020 24,541

Actuant Corp. — Class A 970 24,483

Orbital Sciences Corp.* 1,020 24,449

Belden, Inc. 760 24,160

HUB Group, Inc. — Class A* 24,096

IKON Office Solutions, Inc.† 23,984

Regal-Beloit Corp. 560 23,811

Herman Miller, Inc. 970 23,736

Baldor Electric Co. 800 23,048

Clean Harbors, Inc.* 340 22,967

Hexcel Corp.* 1,660 22,725

ESCO Technologies, Inc.* 450 21,676

Kaydon Corp. 480 21,629

Watsco, Inc. 410 20,615

Mine Safety Appliances Co. 20,585

Huron Consulting Group, Inc.* 20,513

Granite Construction, Inc. 570 20,417

Esterline Technologies Corp.* 20,191

Genesee & Wyoming, Inc. —

Class A* 530 19,886

TransDigm Group, Inc.* 580 19,853

Applied Industrial Technologies,

Inc. 730 19,659

United Stationers, Inc.* 410 19,610

HNI Corp.† 770 19,512

UAL Corp. 2,180 19,162

Mueller Water Products, Inc. —

Class A 2,000 17,960

Franklin Electric Co., Inc. 400 17,820

Resources Connection, Inc.* 17,799

Geo Group, Inc.* 880 17,785

Simpson Manufacturing Co., Inc.† 17,608

American Superconductor Corp.* 17,206

Ceradyne, Inc.* 460 16,864

Knight Transportation, Inc. 16,800

1,060

1,170

160

150

240

390

1,050

780

1,150

740

1,020

610

2,070

640

1,410

540

360

510

790

650

730

990

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 51

September 30, 2008

Barnes Group, Inc. 830 $ 16,783 American Reprographics Co.* $ 10,867

Navigant Consulting, Inc.* 840 16,708 NCI Building Systems, Inc.* 10,795

ABM Industries, Inc. 760 16,598 Interface, Inc. — Class A 920 10,460

II-VI, Inc.* 420 16,237 Viad Corp. 360 10,364

SkyWest, Inc. 1,010 16,140 School Specialty, Inc.* 330 10,293

Werner Enterprises, Inc. 740 16,065 Universal Forest Products, Inc. 10,124

Middleby Corp.* 290 15,750 Administaff, Inc. 370 10,071

CoStar Group, Inc.* 340 15,433 Tennant Co. 290 9,935

Lindsay Manufacturing Co. 15,277 Pacer International, Inc. 600 9,882

Robbins & Myers, Inc. 490 15,156 Quanex Building Products Corp. 9,754

Heartland Express, Inc. 970 15,054 Astec Industries, Inc.* 310 9,557

JetBlue Airways Corp.* 2,996 14,830 American Science & Engineering,

Mueller Industries, Inc. 640 14,726 Inc. 160 9,557

Korn/Ferry International, Inc.* 14,256 EnerSys* 480 9,461

Albany International Corp. — NACCO Industries, Inc. — Class A 9,452

Class A 520 14,212 Gorman-Rupp Co. 250 9,430

Chart Industries, Inc.* 490 13,994 RSC Holdings, Inc.* 830 9,429

Genco Shipping & Trading Ltd. 13,961 Comfort Systems USA, Inc. 9,352

Watts Industries, Inc. — Class A 13,948 Atlas Air Worldwide Holdings Co.,

Briggs & Stratton Corp. 860 13,915 Inc.* 230 9,271

Evergreen Solar, Inc.* 2,490 13,745 Interline Brands, Inc.* 560 9,078

Healthcare Services Group 13,717 Advisory Board Co.* 300 9,048

A.O. Smith Corp. 350 13,716 Heidrick & Struggles International,

Rollins, Inc. 720 13,666 Inc. 300 9,045

Forward Air Corp. 500 13,615 Axsys Technologies, Inc.* 150 8,841

Old Dominion Freight Line, Inc.* 13,603 Gibraltar Industries, Inc. 470 8,794

Triumph Group, Inc. 290 13,256 Kelly Services, Inc. — Class A 8,763

Arkansas Best Corp. 390 13,139 AZZ, Inc.* 210 8,688

EnPro Industries, Inc.* 350 13,006 Exponent, Inc.* 260 8,603

Deluxe Corp. 890 12,807 Allegiant Travel Co.* 240 8,477

RBC Bearings, Inc.* 380 12,802 Teletech Holdings, Inc.* 680 8,459

Titan International, Inc. 600 12,792 M&F Worldwide Corp.* 200 8,000

Knoll, Inc. 840 12,701 Taser International, Inc.* 1,090 7,793

Alaska Air Group, Inc.* 620 12,642 Columbus McKinnon Corp. —

Circor International, Inc. 290 12,595 Class A* 330 7,778

Seaboard Corp. 10 12,570 American Ecology Corp. 280 7,748

Kaman Corp. — Class A 440 12,531 Apogee Enterprises, Inc. 500 7,515

PHH Corp.* 940 12,493 Tredegar Corp. 420 7,472

Heico Corp. 380 12,472 Rush Enterprises, Inc. — Class A* 7,424

TrueBlue, Inc.* 770 12,443 Blount International, Inc.* 660 7,346

Perini Corp.* 470 12,121 DynCorp International, Inc. —

Beacon Roofing Supply, Inc.* 12,027 Class A* 430 7,207

US Airways Group, Inc.* 1,980 11,939 Insituform Technologies, Inc. —

YRC Worldwide, Inc.* 990 11,840 Class A* 480 7,181

Mcgrath Rentcorp 410 11,816 FuelCell Energy, Inc.* 1,190 7,176

Badger Meter, Inc. 250 11,737 ACCO Brands Corp.* 940 7,088

Layne Christensen Co.* 330 11,692 Tecumseh Products Co. — Class A* 7,011

Mobile Mini, Inc.* 600 11,598 Cascade Corp. 160 7,010

Team, Inc.* 320 11,558 Northwest Pipe Co.* 160 6,979

Ameron International Corp. 11,464 Ennis Inc. 450 6,957

Federal Signal Corp. 830 11,371 GeoEye, Inc.* 310 6,860

Eagle Bulk Shipping Inc. 810 11,291 Griffon Corp.*† 760 6,855

G & K Services, Inc. — Class A 11,237 Altra Holdings, Inc.* 460 6,790

AAR Corp.* 670 11,115 Amerco, Inc.* 160 6,709

Raven Industries, Inc.† 280 11,018 Gencorp, Inc.* 990 6,673

630

340

290

210

640

800

100

420

700

510

750

480

460

580

770

280

160

340

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

52 | See Notes to Financial Statements.

September 30, 2008

Cubic Corp. 270 $ 6,639 3D Systems Corp.* 310 $ 4,417

American Commercial Lines, Inc.* 6,597 Celadon Group, Inc.* 380 4,359

CBIZ, Inc.* 780 6,591 Great Lakes Dredge & Dock Corp.

Furmanite Corp.* 630 6,514 Co. 690 4,354

Hawaiian Holdings, Inc.* 690 6,403 Ducommun, Inc. 180 4,298

Cenveo, Inc.* 830 6,383 Pike Electric Corp.* 290 4,272

Republic Airways Holdings, Inc.* 6,216 AAON, Inc. 230 4,184

Colfax Corp.* 370 6,183 Insteel Industries, Inc. 300 4,077

Kenexa Corp. — Class A* 390 6,158 American Woodmark Corp. 4,041

Freightcar America, Inc. 210 6,147 Aceto Corp. 420 4,028

Standex International Corp. 6,105 Herley Industries, Inc.* 230 3,933

Innerworkings, Inc.* 550 6,099 Schawk, Inc. 260 3,931

Polypore International, Inc.* 6,023 Teekay Tankers Ltd. 230 3,894

Fuel Tech, Inc.* 330 5,970 Orion Marine Group, Inc.* 3,881

Kimball International, Inc. — PeopleSupport, Inc.* 330 3,858

Class B 550 5,940 Thermadyne Holdings Corp.* 3,834

EnergySolutions, Inc. 580 5,800 Applied Signal Technology, Inc. 3,824

Encore Wire Corp. 320 5,795 Met-Pro Corp. 260 3,793

LB Foster Co. — Class A* 190 5,780 Duff & Phelps Corp. — Class A* 3,785

Aerovironment, Inc.* 180 5,751 Odyssey Marine Exploration, Inc.* 3,768

Hill International, Inc.* 410 5,678 Courier Corp. 180 3,665

Stanley, Inc.* 150 5,536 Ampco-Pittsburgh Corp. 140 3,626

Kadant, Inc.* 240 5,465 NN, Inc. 280 3,598

Greenbrier Companies, Inc. 5,463 LECG Corp.* 440 3,551

Bowne & Co., Inc. 470 5,428 Arlington Tankers Ltd. 220 3,384

Kforce, Inc.* 530 5,411 Ultrapetrol Bahamas Ltd.* 430 3,375

Argon ST, Inc.* 230 5,403 Standard Parking Corp.* 150 3,333

Houston Wire & Cable Co. 5,323 PMFG, Inc.* 230 3,333

Powell Industries, Inc.* 130 5,305 Flow International Corp.* 650 3,302

Gehl Co.* 180 5,297 Capstone Turbine Corp.* 3,264

Marten Transport Ltd.* 270 5,268 Hurco Companies, Inc.* 110 3,253

CRA International, Inc.* 190 5,221 Sterling Construction Co., Inc.* 3,240

Sun Hydraulics Corp. 200 5,208 DXP Enterprises, Inc.* 60 3,199

TAL International Group, Inc. 5,205 LaBarge, Inc.* 210 3,163

Cornell Companies, Inc.* 190 5,164 Force Protection, Inc.* 1,176 3,152

Consolidated Graphics, Inc.* 5,156 Saia, Inc.* 230 3,054

K-Tron International, Inc.* 40 5,153 Waste Services Inc.* 410 3,038

CDI Corp. 230 5,136 Valence Technology, Inc.*† 3,036

Horizon Lines, Inc. — Class A† 5,132 Vicor Corp. 340 3,019

Dynamic Materials Corp. 220 5,106 LMI Aerospace, Inc.* 150 3,017

Ladish Co., Inc.* 250 5,062 Hudson Highland Group, Inc.* 2,989

Wabash National Corp. 530 5,008 Preformed Line Products Co. 2,917

Electro Rent Corp. 370 4,969 Lydall, Inc.* 290 2,793

AirTran Holdings, Inc.* 2,030 4,933 LSI Industries, Inc. 330 2,729

Graham Corp. 90 4,869 Titan Machinery, Inc.* 130 2,705

Ener1, Inc.* 620 4,842 H&E Equipment Services, Inc.* 2,705

On Assignment, Inc.* 610 4,807 Commercial Vehicle Group, Inc.* 2,631

Trex Co., Inc.* 260 4,709 Textainer Group Holdings Ltd. 2,582

Spherion Corp.* 950 4,626 American Railcar Industries, Inc. 2,566

Casella Waste Systems, Inc. — Standard Register Co. 260 2,561

Class A* 390 4,579 First Advantage Corp. — Class A* 2,529

DHT Maritime, Inc. 680 4,570 China Fire & Security Group, Inc.* 2,522

Dynamex, Inc.* 160 4,554 TurboChef Technologies, Inc.* 2,522

Multi-Color Corp. 190 4,539 Park-Ohio Holdings Corp.* 2,505

Michael Baker Corp.* 130 4,524 Metalico, Inc.* 420 2,478

620

610

180

220

280

370

230

220

180

830

280

310

2,530

200

250

170

880

520

430

50

280

370

170

160

180

240

410

140

MARKET MARKET

Total Industrials

HEALTH CARE 10.1%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 53

September 30, 2008

Advanced Battery Technologies, Psychiatric Solutions, Inc.* 960 $ 36,432

Inc.* 760 $ 2,455 Onyx Pharmaceuticals, Inc.* 34,733

Universal Truckload Services, Inc.* 2,436 Owens & Minor, Inc. 710 34,435

COMSYS IT Partners, Inc.* 2,430 Bio-Rad Laboratories, Inc. —

TBS International Ltd. — Class A* 2,423 Class A* 330 32,710

Fushi Copperweld, Inc.* 250 2,423 NuVasive, Inc.* 620 30,585

International Shipholding Corp.* 2,409 Masimo Corp.* 800 29,760

Patriot Transportation Holding, Inc.* 2,370 Magellan Health Services, Inc.* 28,742

Key Technology, Inc.* 100 2,370 Healthsouth Corp.* 1,530 28,198

ICF International, Inc.* 120 2,370 Parexel International Corp.* 28,087

VSE Corp. 70 2,361 Haemonetics Corp.* 450 27,774

PRG-Schultz International, Inc.* 2,330 West Pharmaceutical Services, Inc. 27,339

Xerium Technologies, Inc. 360 2,318 Alpharma, Inc. — Class A* 26,561

Microvision, Inc.* 1,180 2,289 Isis Pharmaceuticals, Inc.* 26,517

Integrated Electrical Services, Inc.* 2,283 Sequenom, Inc.* 980 26,088

China Architectural Engineering, Thoratec Corp.* 950 24,937

Inc.* 320 2,269 Valeant Pharmaceuticals

Beacon Power Corp.* 1,540 2,233 International* 1,210 24,769

Twin Disc, Inc. 150 2,064 Regeneron Pharmaceuticals, Inc.* 23,576

Volt Information Sciences, Inc.* 1,976 AMERIGROUP Corp.* 930 23,473

Lawson Products, Inc. 70 1,936 Auxilium Pharmaceuticals, Inc.* 23,004

Alamo Group, Inc. 110 1,876 Amedisys, Inc.* 460 22,388

China BAK Battery, Inc.* 520 1,872 American Medical Systems

Power-One, Inc.* 1,290 1,871 Holdings, Inc.* 1,260 22,378

Flanders Corp.* 280 1,764 Alkermes, Inc.* 1,660 22,078

EnerNOC, Inc.* 170 1,758 Varian, Inc.* 510 21,879

PowerSecure International, Inc.* 1,757 Cubist Pharmaceuticals, Inc.* 21,785

Ultralife Batteries, Inc.* 220 1,705 Celera Corp.* 1,390 21,475

Builders FirstSource, Inc.* 280 1,677 XenoPort, Inc.* 440 21,336

Trimas Corp.* 250 1,640 Medicines Co.* 900 20,898

Harbin Electric, Inc.* 130 1,541 PSS World Medical, Inc.* 20,865

CAI International, Inc.* 130 1,438 Dionex Corp.* 320 20,336

Coleman Cable Inc.* 140 1,404 Meridian Bioscience, Inc. 700 20,328

Plug Power, Inc.* 1,390 1,376 Eclipsys Corp.* 940 19,693

Akeena Solar, Inc.* 360 1,364 Wright Medical Group, Inc.* 19,482

Amrep Corp. PLC* 30 1,272 PDL BioPharma, Inc. 2,070 19,272

ICT Group, Inc.* 150 1,208 Healthspring, Inc.* 860 18,198

Omega Flex, Inc. 50 1,128 Luminex Corp.* 720 18,007

Medis Technologies Ltd.* 540 972 Alnylam Pharmaceuticals, Inc.* 17,949

Protection One, Inc.* 110 969 Martek Biosciences Corp. 570 17,909

Orion Energy Systems Inc.* 898 Sciele Pharma, Inc. 550 16,934

United Capital Corp.* 30 795 Chemed Corp. 410 16,835

Ascent Solar Technologies, Inc.* 790 Conmed Corp.* 500 16,000

Dollar Thrifty Automotive Group, Viropharma, Inc.* 1,210 15,875

Inc.* 370 714 Phase Forward, Inc.* 740 15,473

China Direct, Inc.* 100 422 Centene Corp.* 750 15,382

Acorda Therapeutics, Inc.* 15,264

Human Genome Sciences, Inc.* 14,922

HealthExtras, Inc.* 570 14,888

Rigel Pharmaceuticals, Inc.* 14,710

Medicis Pharmaceutical Corp. —

Class A 980 14,612

Medarex, Inc.* 2,210 14,299

Volcano Corp.* 820 14,178

Mentor Corp. 590 14,077

2,840,196

Alexion Pharmaceuticals, Inc.* 52,269

Myriad Genetics, Inc.* 770 49,958

OSI Pharmaceuticals, Inc.* 990 48,797

United Therapeutics Corp.* 41,016

Immucor, Inc.* 1,220 38,991

Steris Corp. 1,020 38,332

960

100

250

180

110

30

700

980

260

560

720

1,570

130

1,080

220

710

290

980

1,070

640

620

160

130

640

2,350

630

1,330

390

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

54 | See Notes to Financial Statements.

September 30, 2008

Savient Pharmaceuticals, Inc.* $ 14,015 Durect Corp.* 1,420 $ 7,952

AmSurg Corp.* 550 14,008 Res-Care, Inc.* 430 7,800

Apria Healthcare Group, Inc.* 13,862 Halozyme Therapeutics, Inc.* 7,780

Cepheid, Inc.* 990 13,692 Molina Healthcare, Inc.* 250 7,750

Integra LifeSciences Holdings Abaxis, Inc.* 380 7,486

Corp.* 310 13,649 Albany Molecular Research, Inc.* 7,417

Invacare Corp. 560 13,518 Par Pharmaceutical Companies,

Kindred Healthcare, Inc.* 490 13,509 Inc.* 600 7,374

KV Pharmaceutical Co.* 570 12,945 LHC Group, Inc.* 250 7,120

ArthroCare Corp.* 460 12,751 Omnicell, Inc.* 540 7,101

Allscripts Healthcare Solutions, Inc.* 12,316 MWI Veterinary Supply, Inc.* 7,072

ev3, Inc.* 1,220 12,249 National Healthcare Corp. 7,068

athenahealth, Inc.* 360 11,977 Neogen Corp.* 250 7,045

PharMerica Corp.* 530 11,920 Hanger Orthopedic Group, Inc.* 6,980

Datascope Corp.† 230 11,875 Cyberonics, Inc.* 410 6,970

Gentiva Health Services, Inc.* 11,854 Questcor Pharmaceuticals, Inc.* 6,909

Zoll Medical Corp.* 360 11,779 Allos Therapeutics, Inc.* 920 6,817

Bruker BioSciences Corp.* 11,730 Sirona Dental Systems, Inc.* 6,751

Align Technology, Inc.* 1,080 11,696 Angiodynamics, Inc.* 420 6,636

Medivation, Inc.* 440 11,642 Arena Pharmaceuticals, Inc.* 6,400

Landauer, Inc. 160 11,640 CryoLife, Inc.* 480 6,298

Symmetry Medical, Inc.* 620 11,507 Array Biopharma, Inc.* 820 6,298

Analogic Corp. 230 11,445 Enzo Biochem, Inc.* 560 6,149

CV Therapeutics, Inc.* 1,050 11,340 Progenics Pharmaceuticals, Inc.* 6,123

Seattle Genetics, Inc.* 1,050 11,235 GTx, Inc.* 320 6,086

AMAG Pharmaceuticals, Inc.* 11,232 Assisted Living Concepts, Inc. —

Theravance, Inc.* 900 11,214 Class A* 950 6,051

Exelixis, Inc.* 1,820 11,066 Pain Therapeutics, Inc.* 600 5,862

Sun Healthcare Group, Inc.* 10,995 NPS Pharmaceuticals, Inc.* 5,855

Natus Medical, Inc.* 480 10,877 Odyssey HealthCare, Inc.* 5,785

Sunrise Senior Living, Inc.* 10,756 Pharmasset, Inc.* 290 5,786

Abiomed, Inc.* 590 10,472 Bio-Reference Labs, Inc.* 200 5,780

AMN Healthcare Services, Inc.* 10,366 ICU Medical, Inc.* 190 5,778

Vital Signs, Inc. 140 10,346 Enzon Pharmaceuticals, Inc.* 5,756

HMS Holdings Corp.* 430 10,303 Nektar Therapeutics* 1,600 5,744

Kendle International, Inc.* 230 10,283 IRIS International, Inc.* 320 5,728

Incyte Corp.* 1,320 10,098 Momenta Pharmaceuticals, Inc.* 5,637

inVentiv Health, Inc.* 570 10,066 RehabCare Group, Inc.* 310 5,611

Healthways, Inc.* 610 9,839 Orthofix International NV* 5,589

Greatbatch, Inc.* 400 9,816 MedAssets, Inc.* 320 5,504

Vivus, Inc.* 1,200 9,528 Genomic Health, Inc.* 240 5,436

InterMune, Inc.* 550 9,410 Air Methods Corp.* 190 5,379

Affymetrix, Inc.* 1,200 9,288 Geron Corp.* 1,350 5,333

Dendreon Corp.*† 1,620 9,250 Salix Pharmaceuticals Ltd.* 5,320

SonoSite, Inc.* 290 9,106 Life Sciences Research, Inc.* 5,250

Merit Medical Systems, Inc.* 9,010 Accuray, Inc.* 630 5,084

eResearch Technology, Inc.* 8,932 Akorn, Inc.* 990 5,079

RTI Biologics, Inc.* 930 8,695 Idera Pharmaceuticals, Inc.* 5,065

Cougar Biotechnology, Inc.* 8,681 Noven Pharmaceuticals, Inc.* 5,022

Cross Country Healthcare, Inc.* 8,634 Medcath Corp.* 280 5,018

Conceptus, Inc.* 520 8,622 Osiris Therapeutics, Inc.* 260 5,015

SurModics, Inc.* 270 8,502 Sangamo Biosciences, Inc.*† 4,928

Emeritus Corp.* 340 8,466 XOMA Ltd.* 2,300 4,830

Universal American Financial Corp.* 8,289 Vnus Medical Technologies, Inc.* 4,814

Quidel Corp.* 490 8,041

940

760

1,060

410

990

180

150

400

440

940

880

290

1,280

460

290

750

820

570

780

590

780

430

300

830

150

480

750

360

260

430

530

640

680

230

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 55

September 30, 2008

Emergency Medical Services Capital Senior Living Corp.* $ 2,964

Corp. — Class A* 160 $ 4,781 Novavax, Inc.* 1,010 2,929

Cypress Bioscience, Inc.* 650 4,778 Ardea Biosciences, Inc.* 210 2,904

Skilled Healthcare Group, Inc. — Clinical Data, Inc.* 180 2,894

Class A* 300 4,767 Cytokinetics, Inc.* 610 2,891

Pozen, Inc.*† 450 4,730 Exactech, Inc.* 130 2,891

Computer Programs & Systems, Nighthawk Radiology Holdings,

Inc. 160 4,632 Inc.* 400 2,888

Somanetics Corp.* 210 4,593 DexCom, Inc.* 460 2,847

Genoptix Inc.* 140 4,574 Stereotaxis, Inc.* 470 2,844

Indevus Pharmaceuticals, Inc.* 4,523 IPC The Hospitalist Co., Inc.* 2,827

Alliance Imaging, Inc.* 440 4,519 BMP Sunstone Corp.* 400 2,776

Omrix Biopharmaceuticals, Inc.* 4,485 Adolor Corp.* 800 2,760

Insulet Corp.* 320 4,454 Tercica, Inc.* 300 2,682

Almost Family, Inc.* 110 4,351 FGX International Holdings Ltd.* 2,657

Zymogenetics, Inc.* 650 4,329 Inspire Pharmaceuticals, Inc.* 2,606

ImmunoGen, Inc.* 880 4,321 Spectranetics Corp.* 550 2,547

Palomar Medical Technologies, BioMimetic Therapeutics, Inc.* 2,544

Inc.* 320 4,307 Repligen Corp.* 540 2,543

Ligand Pharmaceuticals, Inc. — Accelrys, Inc.* 460 2,525

Class B* 1,460 4,307 Lexicon Genetics, Inc.* 1,390 2,474

Dyax Corp.* 960 4,224 PharmaNet Development Group,

Nabi Biopharmaceuticals* 900 4,194 Inc.* 340 2,455

Synovis Life Technologies, Inc.* 4,140 Ensign Group, Inc. 140 2,393

Kensey Nash Corp.* 130 4,090 Molecular Insight Pharmaceuticals,

Triple-S Management Corp. — Inc.* 310 2,381

Class B* 250 4,073 Caraco Pharm Labs, Inc.* 190 2,377

Vital Images, Inc.* 270 4,050 Caliper Life Sciences, Inc.* 2,324

Hansen Medical, Inc.* 300 4,032 Arqule, Inc.* 700 2,254

Corvel Corp.* 140 4,005 Javelin Pharmaceuticals, Inc.* 2,210

OraSure Technologies, Inc.* 3,985 Synta Pharmaceuticals Corp.* 2,210

Orexigen Therapeutics, Inc.* 3,777 Columbia Labs, Inc. Com* 810 2,122

Micrus Endovascular Corp.* 3,767 Cantel Medical Corp.* 220 2,116

US Physical Therapy, Inc.* 210 3,646 TranS1, Inc.* 210 2,077

Metabolix, Inc.* 330 3,590 Chindex International, Inc.* 2,063

Optimer Pharmaceuticals, Inc.* 3,578 Five Star Quality Care, Inc.* 2,063

Affymax, Inc.* 180 3,573 Providence Service Corp.* 2,058

Cardiac Science Corp.* 340 3,522 Alexza Pharmaceuticals, Inc.* 2,025

I-Flow Corp.* 370 3,445 Immunomedics, Inc.* 1,130 2,011

MannKind Corp.*† 890 3,435 CardioNet, Inc.* 80 1,997

TomoTherapy, Inc.* 710 3,252 Alphatec Holdings, Inc.* 430 1,978

Medical Action Industries, Inc.* 3,151 NxStage Medical, Inc.* 450 1,899

Neurocrine Biosciences, Inc.* 3,142 Nanosphere, Inc.* 220 1,877

Discovery Laboratories, Inc.* 3,142 Maxygen Inc.* 440 1,861

Idenix Pharmaceuticals, Inc.* 3,109 Cytori Therapeutics, Inc.* 350 1,848

Cadence Pharmaceuticals, Inc.* 3,108 Targacept, Inc.* 310 1,801

Obagi Medical Products, Inc.* 3,094 Acadia Pharmaceuticals, Inc.* 1,528

Atrion Corp. 30 3,091 BioForm Medical, Inc.* 380 1,490

Cambrex Corp.* 500 3,075 RadNet, Inc.* 370 1,484

Cynosure, Inc.* 170 3,050 Opko Health, Inc.* 830 1,453

Depomed, Inc.* 830 3,030 MAP Pharmaceuticals, Inc.* 1,417

Celldex Therapeutics, Inc.* 3,024 Sucampo Pharmaceuticals, Inc. —

Emergent Biosolutions, Inc.* 3,011 Class A* 160 1,365

Orthovita, Inc.* 1,150 2,990 Amicus Therapeutics, Inc.* 80 1,210

Ariad Pharmaceuticals, Inc.* 2,989 Vision-Sciences, Inc.* 290 1,157

390

1,350

110

250

240

730

230

220

830

850

810

290

350

270

190

450

550

210

410

240

670

1,680

430

350

310

570

140

260

230

1,210

MARKET MARKET

Total Health Care

CONSUMER DISCRETIONARY 8.7%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

56 | See Notes to Financial Statements.

September 30, 2008

Acura Pharmaceuticals, Inc.* $ 984 Sonic Corp.* 1,040 $ 15,153

Virtual Radiologic Corp.* 120 979 Buckle, Inc. 270 14,996

MiddleBrook Pharmaceuticals, Inc.* 930 Bob Evans Farms, Inc. 540 14,737

National Research Corp. 30 920 Timberland Co. — Class A* 14,417

Cell Genesys, Inc.* 1,490 879 Sally Beauty Holdings, Inc.*† 14,104

Marshall Edwards, Inc.* 360 774 Children’s Place Retail Stores, Inc.* 13,673

Rexahn Pharmaceuticals, Inc.* 658 Meritage Homes Corp.*† 530 13,091

Jazz Pharmaceuticals, Inc.* 642 Iconix Brand Group, Inc.* 13,080

Biodel, Inc.* 190 637 American Greetings Corp. —

Protalix BioTherapeutics, Inc.* 424 Class A 850 12,996

Quiksilver, Inc.* 2,190 12,571

Buffalo Wild Wings, Inc.* 310 12,474

Ethan Allen Interiors, Inc. 430 12,049

Brown Shoe Co., Inc. 730 11,957

Jakks Pacific, Inc.* 480 11,957

Dress Barn, Inc.* 780 11,926

Helen of Troy Ltd.* 520 11,840

Dillard’s, Inc. — Class A 990 11,682

Lear Corp.* 1,110 11,655

CEC Entertainment, Inc.* 350 11,620

Stewart Enterprises, Inc. —

Class A 1,450 11,397

Genesco, Inc.* 330 11,048

Scholastic Corp. 420 10,786

Unifirst Corp. 250 10,772

Jos. A. Bank Clothiers, Inc.* 10,752

Capella Education Co.* 250 10,715

Standard-Pacific Corp.* 2,150 10,556

Papa John’s International, Inc.* 10,321

CBRL Group, Inc. 380 9,994

P.F. Chang’s China Bistro, Inc.* 9,887

Blue Nile, Inc.* 230 9,860

Fred’s, Inc. 690 9,812

Hibbett Sports Inc.* 490 9,810

Exide Technologies* 1,310 9,668

CKE Restaurants, Inc. 910 9,646

Charming Shoppes, Inc.* 9,633

Steiner Leisure Ltd.* 280 9,626

Skechers U.S.A., Inc. — Class A* 9,593

NutriSystem, Inc.† 530 9,392

Belo Corp. — Class A 1,550 9,238

Jo-Ann Stores, Inc.* 440 9,231

American Public Education, Inc.* 9,173

Stage Stores, Inc. 660 9,016

99 Cents Only Stores* 810 8,886

Columbia Sportswear Co. 210 8,812

ATC Technology Corp.* 370 8,784

Cooper Tire & Rubber Co. 8,772

Group 1 Automotive, Inc. 400 8,692

Tenneco, Inc.* 810 8,610

Cato Corp. — Class A 480 8,424

Churchill Downs, Inc. 170 8,327

Dana Holding Corp.* 1,720 8,325

La-Z-Boy, Inc. 890 8,295

Pacific Sunwear of California, Inc.* 8,278

2,604,705

Aeropostale, Inc.* 1,160 37,248

The Warnaco Group, Inc.* 790 35,779

Tupperware Brands Corp. 29,840

Marvel Entertainment, Inc.* 29,019

Bally Technologies, Inc.* 950 28,766

Matthews International Corp. —

Class A 540 27,400

Polaris Industries, Inc. 570 25,929

Rent-A-Center, Inc.* 1,160 25,845

Tractor Supply Co.* 580 24,389

Deckers Outdoor Corp.* 230 23,938

Sotheby’s 1,170 23,470

WMS Industries, Inc.* 760 23,233

Wolverine World Wide, Inc. 22,756

Fossil, Inc.* 790 22,302

Corinthian Colleges, Inc.* 22,200

Netflix, Inc.* 700 21,616

Jack in the Box, Inc.* 1,020 21,522

Aaron Rents, Inc. 790 21,385

Live Nation, Inc.* 1,310 21,314

J. Crew Group, Inc.* 740 21,142

Arbitron, Inc. 470 21,004

Gaylord Entertainment Co.* 20,853

Regis Corp. 750 20,625

Collective Brands, Inc.* 1,110 20,324

Ryland Group, Inc. 740 19,625

Brunswick Corp. 1,520 19,441

Pool Corp. 830 19,364

Carter’s, Inc.* 980 19,335

Men’s Wearhouse, Inc. 900 19,116

Vail Resorts, Inc.* 540 18,873

Life Time Fitness, Inc.*† 600 18,762

Under Armour, Inc.* 570 18,103

Gymboree Corp.* 490 17,395

Cheesecake Factory, Inc.* 16,959

Chico’s FAS, Inc.* 3,060 16,738

ArvinMeritor, Inc. 1,280 16,691

Callaway Golf Co. 1,150 16,180

Interactive Data Corp. 630 15,889

Zale Corp.* 620 15,500

Coinstar, Inc.* 480 15,360

Tempur-Pedic International, Inc. 15,288

140

620

830

1,640

410

510

130

1,000

190

320

380

420

1,970

570

190

1,020

1,230

1,080

850

860

1,480

710

1,160

1,300

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 57

September 30, 2008

Domino’s Pizza, Inc.* 680 $ 8,255 CKX, Inc.* 910 $ 5,606

Cabela’s, Inc. — Class A* 680 8,214 Zumiez, Inc.* 340 5,603

Texas Roadhouse, Inc.* 910 8,181 Volcom, Inc.* 320 5,530

Modine Manufacturing Co. 8,109 Talbots, Inc. 420 5,502

National CineMedia, Inc. 730 8,066 M/I Homes, Inc.† 240 5,467

RCN Corp.* 650 7,969 Overstock.com, Inc.*† 270 5,349

Pinnacle Entertainment, Inc.* 7,862 Visteon Corp.* 2,270 5,266

K-Swiss, Inc. — Class A 450 7,830 Ambassadors Group, Inc. 330 5,250

Red Robin Gourmet Burgers, Inc.* 7,772 Ruby Tuesday, Inc.* 900 5,211

True Religion Apparel, Inc.* 7,755 Charter Communications, Inc. —

Steven Madden, Ltd.* 310 7,682 Class A* 7,080 5,168

Superior Industries International, CROCS, Inc.* 1,440 5,155

Inc. 400 7,664 Morgans Hotel Group Co.* 5,128

Furniture Brands International, Inc. 7,574 DineEquity, Inc. 300 5,058

Jackson Hewitt Tax Service, Inc. 7,517 HOT Topic, Inc.* 760 5,024

thinkorswim Group, Inc.* 900 7,497 Sealy Corp. 770 4,974

Champion Enterprises, Inc.* 7,492 Media General, Inc. 400 4,972

Finish Line, Inc. — Class A 740 7,393 American Apparel, Inc.* 590 4,838

Fuel Systems Solutions, Inc.* 7,234 Hayes Lemmerz International, Inc.* 4,778

Valassis Communications, Inc.* 7,188 Blyth, Inc. 420 4,763

Lululemon Athletica, Inc.* 310 7,139 California Pizza Kitchen, Inc.* 4,762

Cinemark Holdings, Inc. 520 7,072 Fisher Communications, Inc. 4,728

Borders Group, Inc. 1,050 6,888 Sauer, Inc. 190 4,691

Peet’s Coffee & Tea, Inc.* 240 6,701 Shuffle Master, Inc.* 920 4,683

Harte-Hanks, Inc. 640 6,637 Christopher & Banks Corp. 4,679

Raser Technologies, Inc.* 780 6,630 Speedway Motorsports, Inc. 4,675

Bebe Stores, Inc. 670 6,546 Ulta Salon Cosmetics & Fragrance,

Winnebago Industries, Inc. 6,460 Inc.* 350 4,648

Oxford Industries, Inc. 250 6,457 Cox Radio Inc. — Class A* 4,646

Monro Muffler Brake, Inc. 280 6,457 iRobot Corp.* 310 4,594

PetMed Express, Inc.* 410 6,437 Sinclair Broadcast Group, Inc. —

Pier 1 Imports, Inc.* 1,550 6,401 Class A 910 4,586

Hovnanian Enterprises, Inc. — PEP Boys-Manny Moe & Jack 4,511

Class A* 800 6,392 Dolan Media Co.* 440 4,440

GSI Commerce, Inc.*† 410 6,347 McClatchy Co. — Class A 990 4,356

Asbury Automotive Group, Inc. 6,336 Weyco Group, Inc. 130 4,351

Universal Technical Institute, Inc.* 6,312 Steak n Shake Co.*† 500 4,340

Blockbuster, Inc. — Class A* 6,293 G-III Apparel Group Ltd.* 230 4,303

Movado Group, Inc. 280 6,258 American Axle & Manufacturing

Universal Electronics, Inc.* 250 6,245 Holdings, Inc. 800 4,288

Ameristar Casinos, Inc. 440 6,244 Denny’s Corp.* 1,650 4,257

Leapfrog Enterprises, Inc.* 6,019 Tween Brands, Inc.* 430 4,210

RC2 Corp.* 300 6,000 Citi Trends, Inc.* 250 4,073

National Presto Industries, Inc. 5,960 Beazer Homes USA, Inc.* 680 4,066

DG FastChannel, Inc.* 270 5,918 Mediacom Communications

Drew Industries, Inc.* 340 5,817 Corp.* 680 4,026

The Wet Seal, Inc. — Class A* 5,808 Core-Mark Holding Co., Inc.* 3,998

Pre-Paid Legal Services, Inc.* 5,776 Cavco Industries, Inc.* 110 3,977

Coldwater Creek, Inc.* 990 5,732 Knology, Inc.* 490 3,954

World Wrestling Entertainment, Big 5 Sporting Goods Corp. 3,922

Inc. 370 5,720 New York & Co., Inc.* 400 3,816

Wendy’s/Arby’s Group, Inc. — Sonic Automotive, Inc. 450 3,807

Class A 1,080 5,681 Unifi, Inc.* 780 3,775

Maidenform Brands, Inc.* 390 5,659 Orbitz Worldwide, Inc.* 640 3,757

Marcus Corp. 350 5,628 Martha Stewart Omnimedia, Inc.* 3,744

560

1,040

290

300

470

720

490

1,350

210

1,750

830

370

120

610

240

500

440

730

550

370

3,070

570

80

1,600

160

140

380

440

MARKET MARKET

Total Consumer Discretionary

ENERGY 4.3%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

58 | See Notes to Financial Statements.

September 30, 2008

Charlotte Russe Holding, Inc.* $ 3,690 Libbey, Inc. 250 $ 2,128

Avatar Holdings Inc.* 110 3,630 Build-A-Bear Workshop, Inc.* 2,111

CSS Industries, Inc. 140 3,604 MarineMax, Inc.*† 280 2,024

BJ’s Restaurants, Inc.* 300 3,582 Lumber Liquidators, Inc.* 160 2,010

Journal Communications, Inc. — Learning Tree International, Inc.* 1,992

Class A 730 3,562 Cumulus Media, Inc. — Class A* 1,960

Haverty Furniture Companies, Inc. 3,546 Retail Ventures, Inc.* 500 1,950

drugstore.com, Inc.* 1,450 3,408 Global Traffic Network, Inc.* 1,947

Steinway Musical Instruments, Inc.* 3,398 Dover Downs Gaming &

Midas, Inc.* 240 3,302 Entertainment, Inc. 240 1,867

Gaiam, Inc.* 310 3,286 AH Belo Corp. - Class A 360 1,858

Shutterfly, Inc.* 340 3,267 Quantum Fuel Systems

Krispy Kreme Doughnuts, Inc.* 3,234 Technologies Worldwide, Inc.*† 1,845

Idearc, Inc. 2,560 3,200 Princeton Review, Inc.* 230 1,840

AFC Enterprises, Inc.* 440 3,194 Town Sports International Holdings,

Conn’s, Inc.* 170 3,181 Inc.* 300 1,830

Skyline Corp. 120 3,172 Nautilus, Inc.*† 400 1,828

America’s Car Mart, Inc.* 170 3,160 Spartan Motors, Inc. 560 1,781

DSW, Inc.* 230 3,151 Stein Mart, Inc. 440 1,720

Perry Ellis International, Inc.* 3,131 Great Wolf Resorts, Inc.* 470 1,720

Landry’s Restaurants, Inc. 200 3,110 Palm Harbor Homes, Inc.* 170 1,685

Hooker Furniture Corp. 170 3,018 Syms Corp.* 120 1,621

Luby’s, Inc.* 370 2,975 Rex Stores Corp.* 140 1,617

Global Sources Ltd.* 290 2,920 Wonder Auto Technology, Inc.* 1,603

Stamps.com, Inc.* 250 2,918 Bluegreen Corp.* 220 1,520

K12 Inc.* 110 2,915 Playboy Enterprises, Inc. —

Cherokee, Inc. 130 2,857 Class B* 370 1,458

Stoneridge, Inc.* 250 2,813 Dover Motorsports, Inc. 260 1,417

Audiovox Corp. — Class A* 2,811 Marine Products Corp. 170 1,411

Entravision Communications Fuqi International, Inc.* 170 1,386

Corp. — Class A* 1,030 2,771 Ruth’s Chris Steak House* 350 1,376

Lee Enterprises, Inc. 780 2,730 Cache, Inc.* 200 1,374

O’Charleys, Inc. 310 2,713 Fleetwood Enterprises, Inc.* 1,346

1-800-FLOWERS.com, Inc.* 2,709 Gray Television, Inc. 740 1,273

Systemax, Inc. 190 2,671 Riviera Holdings Corp.* 170 1,250

Casual Male Retail Group, Inc.* 2,555 Rick’s Cabaret International, Inc.* 1,080

Amerigon, Inc.* 380 2,500 Primedia, Inc.† 440 1,069

Outdoor Channel Holdings, Inc.* 2,464 Crown Media Holdings, Inc. —

Shoe Carnival, Inc.* 150 2,457 Class A* 190 956

Citadel Broadcasting Corp.* 2,449 Lincoln Educational Services Corp.* 926

Isle of Capri Casinos, Inc.* 270 2,435 Six Flags, Inc.* 1,260 869

Smith & Wesson Holding Corp.* 2,431 Einstein Noah Restaurant Group,

Dorman Products, Inc.* 190 2,381 Inc.* 80 806

Lin TV Corp. — Class A* 460 2,374 Westwood One, Inc.* 1,230 677

RH Donnelley Corp.* 1,190 2,368 Value Line, Inc. 20 670

Kenneth Cole Productions, Inc. — Aristotle Corp.* 20 159

Class A 160 2,352

Brookfield Homes Corp. 160 2,298

Monarch Casino & Resort, Inc.* 2,278

Entercom Communications Corp. 2,259

Circuit City Stores, Inc. 2,930 2,227

Russ Berrie & Co., Inc.* 290 2,224

Tuesday Morning Corp.* 530 2,189

Lodgian, Inc.* 280 2,184

hhgregg, Inc.* 220 2,145

2,247,315

EXCO Resources, Inc.* 2,590 42,269

Comstock Resources, Inc.* 39,539

Penn Virginia Corp. 720 38,477

Berry Petroleum Co. — Class A 28,660

Concho Resources, Inc.* 960 26,506

Arena Resources, Inc.* 660 25,641

360

290

160

460

310

210

120

980

1,430

210

250

300

1,320

450

650

110

280

3,140

70

650

200

450

790

740

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 59

September 30, 2008

Grey Wolf, Inc.* 3,100 $ 24,118 Callon Petroleum Co.* 360 $ 6,491

Dril-Quip, Inc.* 540 23,431 Clayton Williams Energy, Inc.* 6,348

Stone Energy Corp.* 550 23,281 Energy XXI Bermuda Ltd. 6,323

McMoRan Exploration Co.* 22,222 ENGlobal Corp.* 470 6,237

ION Geophysical Corp.* 1,470 20,859 Allis-Chalmers Energy, Inc.* 6,199

Lufkin Industries, Inc. 260 20,631 Harvest Natural Resources, Inc.* 6,173

Bill Barrett Corp.* 640 20,550 TXCO Resources, Inc.* 610 6,124

Swift Energy Co.* 530 20,506 Dawson Geophysical Co.* 130 6,070

Atlas America, Inc. 600 20,466 VeraSun Energy Corp.* 1,780 5,571

Nordic American Tanker Shipping 19,236 Clean Energy Fuels Corp.* 5,377

CARBO Ceramics, Inc. 360 18,580 Western Refining, Inc. 520 5,257

BPZ Resources, Inc.*† 1,040 17,888 FX Energy, Inc.* 700 5,208

Willbros Group, Inc.* 670 17,755 Energy Partners Ltd.* 550 4,769

GulfMark Offshore, Inc.* 390 17,503 Bronco Drilling Co., Inc.* 460 4,701

Crosstex Energy, Inc. 700 17,479 Gulfport Energy Corp.* 460 4,623

Carrizo Oil & Gas, Inc.* 470 17,047 Rex Energy Corp.* 290 4,570

Goodrich Petroleum Corp.* 17,000 Venoco, Inc.* 350 4,550

Complete Production Services, Rentech, Inc.* 2,880 3,830

Inc.* 830 16,708 Trico Marine Services, Inc.* 3,758

Rosetta Resources, Inc.* 890 16,340 Panhandle Oil and Gas, Inc. —

Ship Finance International Ltd. 15,739 Class A 130 3,722

Parker Drilling Co.* 1,960 15,719 Natural Gas Services Group, Inc.* 3,669

Hornbeck Offshore Services, Inc.* 15,448 CVR Energy, Inc.* 400 3,408

Basic Energy Services, Inc.* 15,336 Northern Oil And Gas, Inc.* 3,008

Delta Petroleum Corp.* 1,080 14,666 Gasco Energy, Inc.* 1,630 2,967

Bristow Group, Inc.* 420 14,213 BMB Munai, Inc.* 690 2,864

NATCO Group, Inc.* 350 14,063 OYO Geospace Corp.* 70 2,750

GMX Resources, Inc.* 290 13,862 Toreador Resources Corp.* 2,607

International Coal Group, Inc.* 13,790 Endeavour International Corp.* 2,600

Contango Oil & Gas Co.* 230 12,415 Alon USA Energy, Inc. 190 2,561

Petroleum Development Corp.* 11,536 Union Drilling, Inc.* 240 2,542

World Fuel Services Corp. 500 11,515 Westmoreland Coal Co.* 160 2,528

Petroquest Energy, Inc.* 750 11,512 National Coal Corp.* 480 2,510

Pioneer Drilling Co.* 860 11,438 Meridian Resource Corp.* 2,484

Newpark Resources, Inc.* 11,388 Tri-Valley Corp.* 390 2,473

USEC, Inc.* 1,930 10,441 RAM Energy Resources, Inc.* 2,341

Warren Resources, Inc.* 1,010 10,080 Approach Resources, Inc.* 2,314

James River Coal Co.* 440 9,676 Bolt Technology Corp.* 150 2,171

Oilsands Quest, Inc.* 3,050 9,119 Delek US Holdings, Inc. 230 2,132

General Maritime Corp. 460 8,961 Double Eagle Petroleum Co.* 1,999

PHI, Inc.* 240 8,863 APCO Argentina, Inc. 70 1,982

Brigham Exploration Co.* 800 8,792 Abraxas Petroleum Corp.* 1,905

Matrix Service Co.* 450 8,595 Cano Petroleum, Inc.* 820 1,894

ATP Oil & Gas Corp.* 480 8,549 Cheniere Energy, Inc.* 840 1,890

T-3 Energy Services, Inc. — Sulphco, Inc.* 920 1,849

Class A* 220 8,166 GeoMet, Inc.* 320 1,741

Cal Dive International, Inc.* 8,162 Mitcham Industries, Inc.* 170 1,715

Golar LNG Ltd. 610 8,101 American Oil & Gas, Inc.* 640 1,670

Knightsbridge Tankers Ltd. 7,941 GeoGlobal Resources, Inc.* 1,663

Superior Well Services, Inc.* 7,340 Houston American Energy Corp. 1,643

Gulf Island Fabrication, Inc. 7,239 Aventine Renewable Energy

Vaalco Energy, Inc.* 1,030 7,045 Holdings, Inc.* 510 1,612

RPC, Inc.† 500 7,030 Geokinetics, Inc.* 80 1,520

Parallel Petroleum Corp.* 720 6,782 PrimeEnergy Corp.* 20 1,480

Gran Tierra Energy, Inc.* 1,800 6,678 Uranium Resources, Inc.* 850 1,437

90

2,080

940

490

610

600

380

390

220

730

210

400

720

370

290

2,210

1,970

260

1,350

1,560

810

160

140

730

770

300

660

290

260

210

MARKET MARKET

Total Energy

MATERIALS 2.7%

Total Materials

UTILITIES 2.5%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

60 | See Notes to Financial Statements.

September 30, 2008

Evergreen Energy Inc.* 1,470 $ 1,382 A.M. Castle & Co. 290 $ 5,011

Quest Resource Corp.* 480 1,277 American Vanguard Corp. 330 4,976

Georesources, Inc.* 110 1,261 Neenah Paper, Inc. 250 4,950

Pacific Ethanol, Inc.* 770 1,070 Innospec, Inc. 410 4,945

GreenHunter Energy, Inc.* 70 998 General Moly, Inc.* 1,090 4,742

Olympic Steel, Inc. 160 4,718

Allied Nevada Gold Corp.* 4,462

Innophos Holdings, Inc. 180 4,388

Flotek Industries, Inc.* 390 4,290

LSB Industries, Inc.* 300 4,155

GenTek, Inc.* 160 4,114

Stillwater Mining Co.* 690 4,009

ShengdaTech, Inc.* 520 3,640

Horsehead Holding Corp.* 3,599

AbitibiBowater, Inc.* 920 3,560

Penford Corp. 190 3,361

Landec Corp.* 400 3,276

U S Concrete, Inc.* 690 3,084

Universal Stainless & Alloy* 3,066

ICO, Inc.* 480 2,693

KapStone Paper and Packaging

Corp.* 310 1,969

Mercer International, Inc.* 520 1,903

AEP Industries, Inc.* 90 1,800

Apex Silver Mines Ltd.* 1,020 1,754

Bway Holding Co.* 130 1,525

General Steel Holdings, Inc.*† 1,357

NL Industries, Inc. 120 1,232

United States Lime & Minerals,

Inc.* 30 1,155

China Precision Steel, Inc.* 999

Boise, Inc.* 620 967

Verso Paper Corp. 240 634

Sutor Technology Group Ltd.* 428

714,019

Hecla Mining Co.*† 2,210 10,343

Haynes International, Inc.* 210 9,834 ITC Holdings Corp. 860 44,522

Headwaters, Inc.* 730 9,745 Westar Energy, Inc. 1,820 41,933

A. Schulman, Inc. 470 9,297 Piedmont Natural Gas Co. 40,589

Balchem Corp. 310 8,268 Nicor, Inc. 780 34,593

Zoltek Companies, Inc.* 480 8,213 WGL Holdings, Inc. 860 27,907

RTI International Metals, Inc.* 7,824 Cleco Corp. 1,040 26,260

Wausau Paper Corp. 770 7,800 New Jersey Resources Corp. 26,200

Westlake Chemical Corp. 330 6,940 Portland General Electric Co. 25,789

Brush Engineered Materials, Inc.* 6,499 Northwest Natural Gas Co. 23,920

Zep, Inc. 360 6,350 IDACORP, Inc. 790 22,981

Graphic Packaging Holding Co.* 6,275 Southwest Gas Corp. 750 22,695

Myers Industries, Inc. 490 6,179 Black Hills Corp. 670 20,817

Stepan Co. 110 6,003 Allete, Inc. 450 20,025

Buckeye Technologies, Inc.* 5,569 Avista Corp. 920 19,973

Spartech Corp. 530 5,247 South Jersey Industries, Inc. 18,564

Schweitzer-Mauduit International, Laclede Group, Inc. 380 18,426

Inc. 270 5,127 Unisource Energy Corp. 600 17,514

Quaker Chemical Corp. 180 5,123 NorthWestern Corp. 680 17,088

1,118,710

Hercules, Inc. 1,960 38,788

Compass Minerals International,

Inc. 560 29,338

Rock-Tenn Co. — Class A 660 26,387

Olin Corp. 1,300 25,220

Sensient Technologies Corp. 23,348

Solutia, Inc.* 1,640 22,960

Silgan Holdings, Inc. 440 22,480

Minerals Technologies, Inc. 19,589

W.R. Grace & Co.* 1,250 18,900

Rockwood Holdings, Inc.* 720 18,475

Royal Gold, Inc. 510 18,340

H.B. Fuller Co. 840 17,531

Texas Industries, Inc. 410 16,753

Worthington Industries, Inc. 16,733

Louisiana-Pacific Corp. 1,790 16,647

Ferro Corp. 760 15,276

Arch Chemicals, Inc. 430 15,179

Coeur d’Alene Mines Corp.* 14,611

Calgon Carbon Corp.* 710 14,456

Amcol International Corp. 450 14,067

Koppers Holdings, Inc. 360 13,468

NewMarket Corp. 230 12,089

OM Group, Inc.* 530 11,925

Kaiser Aluminum Corp. 270 11,596

Deltic Timber Corp. 180 11,455

Glatfelter 780 10,561

PolyOne Corp.* 1,620 10,449

780

610

120

190

300

130

1,270

400

730

1,090

350

460

2,510

680

520

830

330

1,120

9,550

MARKET MARKET

Total Utilities

CONSUMER STAPLES 2.5%

Total Consumer Staples

TELECOMMUNICATION SERVICES 0.8%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® 1.5x STRATEGY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 61

September 30, 2008

El Paso Electric Co.* 780 $ 16,380 Smart Balance, Inc.* 1,090 $ 7,150

Otter Tail Power Co. 520 15,980 Boston Beer Co., Inc. — Class A* 7,124

UIL Holding Corp. 440 15,105 American Oriental Bioengineering,

PNM Resources, Inc. 1,330 13,619 Inc.* 1,070 6,944

Mge Energy, Inc. 380 13,509 Weis Markets, Inc. 190 6,842

California Water Service Group 13,090 Central Garden and Pet Co. —

Empire District Electric Co. 12,597 Class A* 1,120 6,664

CH Energy Group, Inc. 270 11,764 Great Atlantic & Pacific Tea

American States Water Co. 11,550 Company, Inc* 610 6,600

Ormat Technologies, Inc. 310 11,262 Cal-Maine Foods, Inc. 230 6,311

EnergySouth, Inc. 130 7,986 Alliance One International, Inc.* 5,852

SJW Corp. 230 6,893 Prestige Brands Holdings, Inc. —

Southwest Water Co.† 420 5,355 Class A* 590 5,239

Connecticut Water Service, Inc. 4,343 Ingles Markets, Inc. — Class A 5,023

Consolidated Water Co., Inc. 4,255 USANA Health Sciences, Inc.* 4,919

Central Vermont Public Service Pricesmart, Inc. 250 4,185

Corp. 180 4,219 Star Scientific, Inc.* 1,140 4,058

Middlesex Water Co. 230 4,018 Omega Protein Corp.* 320 3,763

Cadiz, Inc.* 210 4,005 Synutra International, Inc.* 3,623

Chesapeake Utilities Corp. 3,985 Zhongpin, Inc.* 320 3,402

Synthesis Energy Systems, Inc.* 2,134 Inter Parfums, Inc. 240 3,254

US Geothermal, Inc.* 1,080 1,937 Coca-Cola Bottling Co.

Consolidated 70 3,056

Farmer Brothers Co. 120 2,984

Arden Group, Inc. 20 2,912

Village Super Market 60 2,860

Alico, Inc. 60 2,846

Imperial Sugar Co., Inc. 210 2,843

AgFeed Industries, Inc.* 340 2,686

B&G Foods, Inc. 350 2,503

Calavo Growers, Inc. 180 2,243

Griffin Land & Nurseries, Inc. 2,225

Maui Land & Pineapple Co., Inc.* 2,199

Susser Holdings Corp.* 140 2,108

Pilgrim’s Pride Corp.† 780 1,942

National Beverage Corp.* 190 1,685

China Sky One Medical, Inc.* 1,580

American Dairy, Inc.* 120 1,216

Reddy Ice Holdings, Inc. 310 1,132

Schiff Nutrition International, Inc.* 1,093

Mannatech, Inc.† 270 1,080

Spectrum Brands, Inc.* 700 973

Lifeway Foods, Inc.* 80 936

HQ Sustainable Maritime Industries,

Inc.* 120 607

644,289

WD-40 Co. 290 10,420

Vector Group Ltd. 570 10,066 tw telecom Inc.* 2,550 26,494

Nash Finch Co. 220 9,486 Premiere Global Services, Inc.* 15,044

Spartan Stores, Inc. 380 9,454 Syniverse Holdings, Inc.* 890 14,783

J&J Snack Foods Corp. 250 8,478 NTELOS Holdings Corp. 520 13,983

Pantry, Inc.* 390 8,264 Fairpoint Communications, Inc. 13,352

Elizabeth Arden, Inc.* 420 8,245 Cincinnati Bell, Inc.* 4,220 13,040

Diamond Foods, Inc. 280 7,848

653,782

Ralcorp Holdings, Inc.* 980 66,062

Longs Drug Stores Corp. 540 40,846

Flowers Foods, Inc. 1,340 39,342

Casey’s General Stores, Inc. 26,550

Ruddick Corp. 730 23,689

Chattem, Inc.* 300 23,454

Universal Corp. 440 21,600

Hain Celestial Group, Inc.* 19,271

United Natural Foods, Inc.* 18,493

Fresh Del Monte Produce, Inc.* 16,206

TreeHouse Foods, Inc.* 540 16,038

Darling International, Inc.* 15,665

Nu Skin Enterprises, Inc. 860 13,949

Lancaster Colony Corp. 350 13,181

Winn-Dixie Stores, Inc.* 940 13,066

Sanderson Farms, Inc. 350 12,859

Chiquita Brands International, Inc.* 11,858

Tootsie Roll Industries, Inc. 11,853

Green Mountain Coffee Roasters,

Inc.* 300 11,802

Andersons, Inc. 310 10,918

Lance, Inc. 470 10,664

150

340

590

300

1,540

150

220

250

120

180

120

440

60

80

130

160

1,070

1,540

880

700

740

730

1,410

750

410

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

RUSSELL 2000^® 1.5x STRATEGY FUND

MARKET

FACE

MARKET

SHARES

VALUE

AMOUNT

VALUE

Iowa Telecommunications Services,

REPURCHASE AGREEMENTS 29.3%

Inc.

560

$

10,461

Repurchase Agreements (Note 5)

Alaska Communications Systems

Morgan Stanley

Group, Inc.

750

9,172

issued 09/30/08 at 0.05%

Shenandoah Telecommunications

due 10/01/08

$2,386,600

$

2,386,600

Co.

410

9,049

Mizuho Financial Group, Inc.

Centennial Communications Corp.*

1,170

7,301

issued 09/30/08 at 0.26%

General Communication, Inc. —

due 10/01/08

1,976,879

1,976,879

Class A*

780

7,223

Credit Suisse Group

Global Crossing*

450

6,822

issued 09/30/08 at 0.25%

iPCS, Inc. — Class A*

300

6,681

due 10/01/08††

1,807,529

1,807,529

Cogent Communications Group,

Morgan Stanley

Inc.*

830

6,407

issued 09/30/08 at 0.10%

Cbeyond, Inc.*

420

6,044

due 10/01/08

1,399,560

1,399,560

Consolidated Communications

Total Repurchase Agreements

Holdings, Inc.

400

6,032

(Cost $7,570,568)

7,570,568

PAETEC Holding Corp.*

2,140

4,601

Total Investments 99.4%

Atlantic Tele-Network, Inc.

160

4,480

(Cost $25,629,896)

$25,698,032

USA Mobility, Inc.*

400

4,400

FiberTower Corp.*

2,090

2,884

Other Assets in Excess

ICO Global Communications

of Liabilities – 0.6%

$

160,410

Holdings Ltd.*

1,800

1,962

Net Assets – 100.0%

$25,858,442

Ibasis, Inc.

550

1,919

Hungarian Telephone & Cable

UNREALIZED

Corp.*

80

1,592

CONTRACTS

GAIN (LOSS)

Virgin Mobile USA, Inc. — Class A*

530

1,558

FUTURES CONTRACTS PURCHASED

Globalstar, Inc.*

730

1,241

December 2008 Russell 2000 Index

TerreStar Corp.*

1,010

1,010

Mini Futures Contracts

IDT Corp. — Class B*

940

696

(Aggregate Market Value

Total Telecommunication Services

198,231

of Contracts $11,522,420)

169

$

(552,446)

Total Common Stocks

(Cost $17,838,234)

17,906,370

UNITS

SECURITIES LENDING COLLATERAL 0.9%

EQUITY INDEX SWAP AGREEMENT

Mount Vernon Securities

Credit Suisse Capital, LLC

Lending Trust Prime

December 2008 Russell 2000 Index

Portfolio (Note 9)

221,094

221,094

Swap, Terminating 12/29/08**

Total Securities Lending Collateral

(Notional Market Value

(Cost $221,094)

221,094

$9,310,647)

13,701

$

—

* Non-Income Producing Security.

** Total Return based on Russell 2000 Index +/- financing at a variable rate.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2008.

62

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

MARKET MARKET

COMMON STOCKS 48.5%

FINANCIALS 10.5%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 63

September 30, 2008

Cousins Properties, Inc. 795 $ 20,058

Greenhill & Co., Inc. 270 19,912

Post Properties, Inc. 700 19,579

Senior Housing Properties Trust $ 43,132 Extra Space Storage, Inc. 19,354

Realty Income Corp. 1,600 40,960 Selective Insurance Group, Inc. 19,253

Apollo Investment Corp. 2,250 38,362 Eastgroup Properties, Inc. 390 18,931

Aspen Insurance Holdings Ltd. 37,125 First Midwest Bancorp, Inc. 18,665

Highwoods Properties, Inc. 35,560 Cathay General Bancorp 780 18,564

BioMed Realty Trust, Inc. 29,888 Stifel Financial Corp.* 370 18,463

Home Properties, Inc. 500 28,975 National Penn Bancshares, Inc. 18,396

Potlatch Corp. 620 28,762 Delphi Financial Group, Inc. —

Washington Real Estate Investment Class A 650 18,226

Trust 780 28,571 MB Financial Corp. 550 18,188

ProAssurance Corp.* 510 28,560 Sovran Self Storage, Inc. 405 18,099

National Retail Properties, Inc. 27,782 Argo Group International Holdings

Platinum Underwriters Holdings Ltd.* 490 18,056

Ltd. 770 27,320 RLI Corp. 290 18,006

First Niagara Financial Group, Inc. 27,247 First Financial Bankshares, Inc. 17,120

SVB Financial Group* 470 27,222 Equity Lifestyle Properties, Inc. 16,970

Healthcare Realty Trust, Inc. 27,109 Phoenix Companies, Inc. 16,724

Hilb Rogal & Hobbs Co. 580 27,109 Odyssey Re Holdings Corp. 16,644

FirstMerit Corp. 1,280 26,880 Cash America International, Inc. 16,578

Susquehanna Bancshares, Inc. 26,547 Signature Bank* 470 16,394

Westamerica Bancorporation 26,464 Lexington Realty Trust 945 16,273

Entertainment Properties Trust 26,266 Trustmark Corp. 780 16,177

NewAlliance Bancshares, Inc. 25,852 Ares Capital Corp. 1,540 16,062

UMB Financial Corp. 490 25,735 First Commonwealth Financial

Omega Healthcare Investors, Inc. 25,361 Corp. 1,160 15,625

Colonial BancGroup, Inc. 25,066 Provident Financial Services, Inc. 15,519

Corporate Office Properties Trust NBT Bancorp, Inc. 510 15,259

SBI 610 24,613 Pacific Capital Bancorp 730 14,855

Montpelier Re Holdings Ltd. 24,435 LaSalle Hotel Properties 630 14,692

IPC Holdings Ltd. 790 23,866 CVB Financial Corp. 1,050 14,595

Validus Holdings Ltd. 1,020 23,715 Assured Guaranty Ltd. 880 14,309

Mid-America Apartment Inland Real Estate Corp. 910 14,278

Communities, Inc. 472 23,194 Interactive Brokers Group, Inc. —

American Campus Communities, Class A* 640 14,189

Inc. 670 22,700 PrivateBancorp, Inc. 340 14,164

Knight Capital Group, Inc. — TrustCo Bank Corp. 1,200 14,052

Class A* 1,480 21,993 Colonial Properties Trust 750 14,017

Tanger Factory Outlet Centers, S&T Bancorp, Inc. 380 13,995

Inc. 500 21,895 Umpqua Holding Corp. 950 13,974

International Bancshares Corp. 21,870 PS Business Parks, Inc. 240 13,824

FNB Corp. 1,360 21,733 East-West Bancorp, Inc. 999 13,686

Zenith National Insurance Corp. 21,618 DiamondRock Hospitality Co. 13,650

Prosperity Bancshares, Inc. 21,074 Employers Holdings, Inc. 780 13,556

Glacier Bancorp, Inc. 850 21,054 KBW, Inc.* 410 13,505

Old National Bancorp 1,050 21,021 Park National Corp. 170 13,260

United Bankshares, Inc. 600 21,000 optionsXpress Holdings, Inc. 13,011

Hancock Holding Co. 410 20,910 Piper Jaffray Companies, Inc.* 12,975

Max Capital Group Ltd. 890 20,675 Acadia Realty Trust 510 12,893

MFA Mortgage Investments, Inc. 20,345 First Bancorp Puerto Rico 12,387

DCT Industrial Trust, Inc. 2,710 20,298 Navigators Group, Inc.* 209 12,122

First Industrial Realty Trust, Inc.† 20,076 Sterling Bancshares, Inc. 1,160 12,122

1,810

1,260

840

1,350

770

1,000

1,130

1,260

1,160

1,730

330

320

930

1,810

380

460

1,360

460

480

1,720

1,290

3,189

940

1,480

810

590

1,500

620

670

300

3,130

1,120

700

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

64 | See Notes to Financial Statements.

September 30, 2008

Franklin Street Properties Corp., Horace Mann Educators Corp. $ 8,237

Inc. 930 $ 12,090 Independent Bank Corp. 260 8,104

Alexander’s, Inc.* 30 12,000 Stewart Information Services Corp. 8,032

National Health Investors, Inc. 11,963 Harleysville Group, Inc. 210 7,938

Medical Properties Trust Inc. 11,917 Cedar Shopping Centers, Inc. 7,932

Sterling Savings Bank 820 11,890 Simmons First National Corp. 7,832

Community Bank System, Inc. 11,820 Anworth Mortgage Asset Corp. 7,696

Chemical Financial Corp. 379 11,802 SWS Group, Inc. 380 7,661

Brookline Bancorp, Inc. 920 11,767 Ashford Hospitality Trust, Inc. 7,654

Portfolio Recovery Associates, Inc.* 11,671 Saul Centers, Inc. 150 7,581

Ezcorp, Inc. — Class A* 610 11,468 Central Pacific Financial Corp. 7,564

Redwood Trust, Inc. 520 11,300 Tower Group, Inc. 320 7,539

UCBH Holdings, Inc. 1,750 11,217 Boston Private Financial Holdings,

WesBanco, Inc. 420 11,180 Inc. 859 7,508

PacWest Bancorp 390 11,150 American Equity Investment Life

Pinnacle Financial Partners, Inc.* 11,088 Holding Co. 993 7,447

Sunstone Hotel Investors, Inc. 10,935 StellarOne Corp. 360 7,441

Wintrust Financial Corp. 370 10,859 Northwest Bancorp, Inc. 270 7,436

Greenlight Capital Re Ltd. — Univest Corp. of Pennsylvania 7,400

Class A* 460 10,575 Universal Health Realty Income

IBERIABANK Corp. 200 10,570 Trust 190 7,391

City Holding Co. 250 10,562 Cohen & Steers, Inc. 260 7,366

Pennsylvania Real Estate Aircastle Ltd. 740 7,333

Investment Trust 560 10,556 First Busey Corp. 400 7,332

LTC Properties, Inc. 360 10,555 Hilltop Holdings, Inc.* 710 7,327

Ambac Financial Group, Inc. 10,555 TowneBank 330 7,260

Investors Bancorp, Inc.* 700 10,535 Renasant Corp. 330 7,164

Equity One, Inc. 510 10,450 GAMCO Investors, Inc. — Class A 7,116

United Fire & Casualty Co. 10,292 Capital Southwest Corp. 50 7,103

Investors Real Estate Trust 910 10,183 FelCor Lodging Trust, Inc. 990 7,088

Frontier Financial Corp. 739 9,925 NorthStar Realty Finance Corp. 6,820

Infinity Property & Casualty Corp. 9,888 Oriental Financial Group 380 6,787

Safety Insurance Group, Inc. 9,862 First Potomac Realty Trust 390 6,704

Capstead Mortgage Corp. 9,745 Tejon Ranch Co. De* 180 6,687

National Western Life Insurance FPIC Insurance Group, Inc.* 6,681

Co. — Class A 40 9,683 Crawford & Co. — Class B* 6,658

U-Store-It Trust 780 9,571 Riskmetrics Group, Inc.* 340 6,654

Getty Realty Corp. 430 9,533 First Merchants Corp. 290 6,612

World Acceptance Corp.* 260 9,360 Beneficial Mutual Bancorp, Inc.* 6,578

Pico Holdings, Inc.* 260 9,337 FCStone Group, Inc.* 360 6,476

National Financial Partners Corp. 9,300 SY Bancorp, Inc. 210 6,430

Financial Federal Corp. 400 9,168 Radian Group, Inc. 1,270 6,401

Texas Capital Bancshares, Inc.* 9,134 State Auto Financial Corp. 6,395

Parkway Properties, Inc. 240 9,086 Glimcher Realty Trust 600 6,264

Strategic Hotels & Resorts, Inc. 8,909 eHealth, Inc.* 390 6,240

Enstar Group* 89 8,665 Meadowbrook Insurance Group,

Bank Mutual Corp. 759 8,615 Inc. 880 6,213

First Financial Bancorp 590 8,614 Banco Latinoamericano de

United Community Banks, Inc. 8,493 Exportaciones SA 430 6,201

Harleysville National Corp. 8,490 Urstadt Biddle Properties, Inc. 6,188

First Financial Corp. 180 8,456 SCBT Financial Corp. 160 6,016

South Financial Group, Inc. 8,429 WSFS Financial Corp. 100 6,000

Provident New York Bancorp 8,329 Capital City Bank Group, Inc. 5,957

Forestar Real Estate Group, Inc.* 8,260 Flushing Financial Corp. 340 5,950

Community Trust Bancorp, Inc. 8,256 Suffolk Bancorp 150 5,912

640

270

350

1,050

600

220

470

1,300

1,890

240

450

360

810

200

4,530

120

360

880

240

260

890

130

438

520

620

440

220

1,180

640

500

330

1,150

630

190

560

240

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 65

September 30, 2008

Castlepoint Holdings Ltd. 530 $ 5,899 BankFinancial Corp. 310 $ 4,551

Dollar Financial Corp.* 380 5,848 Republic Bancorp, Inc. 150 4,548

LandAmerica Financial Group, Inc. 5,820 Tompkins Financial Corp. 90 4,545

Bancfirst Corp. 120 5,800 Ocwen Financial Corp.* 560 4,508

MVC Capital, Inc. 380 5,795 Capitol Bancorp, Ltd. 230 4,483

Sandy Spring Bancorp, Inc. 5,746 PMA Capital Corp.* 500 4,410

Calamos Asset Management, Peapack Gladstone Financial Corp. 4,355

Inc. — Class A 320 5,734 CNA Surety Corp.* 260 4,342

MainSource Financial Group, Inc. 5,684 SeaBright Insurance Holdings, Inc.* 4,290

Hersha Hospitality Trust 760 5,654 Camden National Corp. 120 4,194

1st Source Corp. 240 5,640 Hatteras Financial Corp. 180 4,176

Dime Community Bancshares 5,631 Lakeland Financial Corp. 190 4,172

CapLease, Inc. 710 5,630 United Financial Bancorp, Inc. 4,158

Ramco-Gershenson Properties United America Indemnity Ltd. —

Trust 250 5,605 Class A* 290 4,127

FBL Financial Group, Inc. — Arrow Financial Corp. 140 4,117

Class A 200 5,578 Old Second Bancorp, Inc. 220 4,074

American Physicians Capital, Inc. 5,503 Southwest Bancorp, Inc. 230 4,064

Amerisafe, Inc.* 300 5,460 Sterling Bancorp 280 4,049

Berkshire Hills Bancorp, Inc. 5,440 Nara Bancorp, Inc. 360 4,032

Home Bancshares, Inc. 210 5,433 Capital Trust, Inc. — Class A 4,030

Bank of the Ozarks, Inc. 200 5,400 Nelnet, Inc. — Class A 280 3,976

Friedman Billings Ramsey Group, MarketAxess Holdings, Inc.* 3,954

Inc. — Class A* 2,697 5,394 Abington Bancorp, Inc. 390 3,947

RAIT Financial Trust 980 5,380 First Bancorp 230 3,933

Prospect Capital Corp. 420 5,380 Consolidated-Tomoka Land Co. 3,887

Presidential Life Corp. 340 5,369 Thomas Properties Group, Inc. 3,838

Compass Diversified Trust 379 5,283 Enterprise Financial Services Corp. 3,835

Newcastle Investment Corp. 5,271 Westwood Holdings Group, Inc. 3,792

Heartland Financial USA, Inc. 5,263 The PMI Group, Inc. 1,280 3,776

First Community Bancshares, Inc. 5,253 Northfield Bancorp, Inc.* 310 3,754

Sun Communities, Inc. 260 5,151 Penson Worldwide Co., Inc.* 3,745

Westfield Financial, Inc. 500 5,150 Lakeland Bancorp, Inc. 320 3,741

Columbia Banking Systems, Inc. 5,142 ESSA Bancorp, Inc. 269 3,739

Guaranty Bancorp* 830 5,063 Darwin Professional Underwriters,

Provident Bankshares Corp. 5,049 Inc.* 120 3,733

Hercules Technology Growth Capital, First Financial Northwest, Inc. 3,715

Inc. 520 5,044 West Coast Bancorp 250 3,665

Union Bankshares Corp. 210 5,040 BancTrust Financial Group, Inc. 3,660

Gladstone Capital Corp. 330 5,029 Wilshire Bancorp, Inc. 300 3,651

Advanta Corp. 610 5,020 LaBranche & Co., Inc.* 810 3,645

Education Realty Trust, Inc. 4,986 West Bancorporation, Inc. 279 3,635

NGP Capital Resources Co. 4,954 Smithtown Bancorp, Inc. 160 3,600

Green Bankshares, Inc. 210 4,937 CoBiz Financial, Inc. 299 3,591

Flagstone Reinsurance Holdings 4,930 Maguire Properties, Inc. 600 3,576

GFI Group, Inc. 1,040 4,898 Danvers Bancorp, Inc. 279 3,557

Citizens, Inc.* 590 4,850 Oritani Financial Corp.* 210 3,539

Southside Bancshares, Inc. 4,788 Kite Realty Group Trust 320 3,520

Washington Trust Bancorp, Inc. 4,788 Peoples Bancorp, Inc. 160 3,483

TradeStation Group, Inc.* 510 4,769 First Place Financial Corp. 269 3,457

Triko Bancshares 220 4,737 Donegal Group, Inc. — Class A 3,445

First Financial Holdings, Inc. 4,712 City Bank 220 3,432

Citizens Banking Corp. 1,520 4,682 Agree Realty Corp. 120 3,432

Western Alliance Bancorp, Inc.* 4,638 Winthrop Realty Trust 880 3,432

First Cash Financial Services, Inc.* 4,635 Kearny Financial Corp. 280 3,427

240

260

130

290

330

370

280

130

170

260

490

90

380

170

830

80

210

140

270

290

520

360

279

450

340

480

190

180

190

180

300

309

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

66 | See Notes to Financial Statements.

September 30, 2008

State Bancorp, Inc. 230 $ 3,427 Premierwest Bancorp 310 $ 2,502

Financial Institutions, Inc. 170 3,402 Pacific Continental Corp. 170 2,489

Amtrust Financial Services, Inc. 3,398 Seacoast Banking Corporation of

Maiden Holdings Ltd. 780 3,393 Florida 230 2,468

Shore Bancshares, Inc. 130 3,341 PennantPark Investment Corp. 2,445

Baldwind & Lyons, Inc. — Class B 3,332 Flagstar Bancorp, Inc. 820 2,444

Chimera Investment Corp. 3,291 Heritage Commerce Corp. 2,435

First Mercury Financial Corp.* 3,278 Corus Bankshares, Inc. 599 2,426

Life Partners Holdings, Inc. 90 3,237 Monmouth Real Estate Investment

Kansas City Life Insurance Co. 3,220 Corp. — Class A 310 2,415

Ameris Bancorp 210 3,119 Care Investment Trust, Inc. 2,411

MCG Capital Corp. 1,190 3,118 BlackRock Kelso Capital Corp. 2,410

Sun Bancorp, Inc.* 230 3,117 Medallion Financial Corp. 230 2,408

Cascade Bancorp. 349 3,103 Gladstone Investment Corp. 2,408

NewStar Financial, Inc.* 380 3,074 National Interstate Corp. 100 2,403

Quanta Capital Holdings Ltd. 3,064 Bryn Mawr Bank Corp. 109 2,396

Cardinal Financial Corp. 379 3,062 Pennsylvania Commerce Bancorp,

Yadkin Valley Financial Corp. 3,053 Inc.* 80 2,385

Cogdell Spencer, Inc. 190 3,048 Guaranty Financial Group, Inc.* 2,331

Ladenburg Thalmann Financial Kohlberg Capital Corp. 270 2,319

Services, Inc.* 1,690 3,042 One Liberty Properties, Inc. 2,297

Mission West Properties 310 3,019 BGC Partners, Inc. - Class A 2,274

Citizens & Northern Corp. 140 3,017 First South Bancorp, Inc. 130 2,245

Encore Capital Group, Inc.* 3,014 Rockville Financial, Inc. 140 2,205

Associated Estates Realty Corp. 2,997 Arbor Realty Trust, Inc. 220 2,200

Hanmi Financial Corp. 590 2,980 Anchor BanCorp Wisconsin, Inc. 2,198

ViewPoint Financial Group 2,975 United Security Bancshares 2,127

Amcore Financial, Inc. 320 2,960 Patriot Capital Funding, Inc. 2,102

DuPont Fabros Technology, Inc. 2,898 United Community Financial Corp. 2,100

Evercore Partners, Inc. — Class A 2,859 Roma Financial Corp. 140 2,065

FBR Capital Markets Corp.* 2,845 Resource Capital Corp. 340 2,060

American Capital Agency Corp. 2,771 Clifton Savings Bancorp, Inc. 2,038

Stratus Properties, Inc.* 100 2,752 US Global Investors, Inc. —

First Bancorp, Inc. 139 2,724 Class A 200 2,010

First Marblehead Corp. 1,090 2,714 JER Investors Trust, Inc. 415 2,000

Kayne Anderson Energy Advance America Cash Advance

Development Co. 160 2,709 Centers, Inc. 660 1,973

Farmers Capital Bank Corp. 2,702 Encore Bancshares, Inc.* 100 1,800

Diamond Hill Investment Group, Epoch Holding Corp. 170 1,794

Inc.* 30 2,698 NYMAGIC, Inc. 70 1,768

Anthracite Capital, Inc. 502 2,691 Meridian Interstate Bancorp, Inc.* 1,736

Sanders Morris Harris Group Inc. 2,682 FirstFed Financial Corp.*† 220 1,725

Centerstate Banks of Florida, Inc. 2,681 Gramercy Capital Corp. 660 1,709

Banner Corp. 220 2,642 International Assets Holding Corp.* 1,688

Integra Bank Corp. 330 2,633 NASB Financial, Inc. 50 1,625

EMC Insurance Group, Inc. 89 2,624 Fifth Street Finance Corp. 160 1,608

Harris & Harris Group, Inc.* 2,616 Credit Acceptance Corp.* 90 1,530

Thomas Weisel Partners Group, Resource America, Inc. — Class A 1,520

Inc.* 310 2,613 Cardtronics, Inc.* 190 1,493

Ames National Corp. 100 2,595 Grubb & Ellis Co. 550 1,485

American Safety Insurance Midwest Banc Holdings, Inc. 1,400

Holdings Ltd.* 170 2,569 AmCOMP, Inc.* 110 1,276

Oceanfirst Financial Corp. 140 2,537 Home Federal Bancorp, Inc. 1,275

Asset Acceptance Capital Corp.* 2,530 Fox Chase Bancorp, Inc.* 100 1,170

Sierra Bancorp 120 2,503 Independence Holding Co. 1,155

250

330

139

530

160

230

70

210

209

350

1,110

180

590

130

530

220

230

299

170

130

330

190

420

159

439

160

170

100

170

310

150

70

410

160

350

100

240

100

MARKET MARKET

Total Financials

INFORMATION TECHNOLOGY 8.2%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 67

September 30, 2008

Broadpoint Securities Group, Inc.* $ 1,099 Cybersource Corp.* 1,089 $ 17,544

Waterstone Financial, Inc.* 1,075 ADTRAN, Inc. 890 17,346

Downey Financial Corp. 370 1,036 Plantronics, Inc. 770 17,340

Doral Financial Corp.* 90 983 InterDigital, Inc.* 720 17,316

CompuCredit Corp.* 250 980 Progress Software Corp.* 660 17,153

W Holding Co., Inc. 1,800 972 j2 Global Communications, Inc.* 16,345

Primus Guaranty Ltd.* 370 969 Mentor Graphics Corp.* 1,429 16,219

Ampal American Israel — Class A* 958 Synaptics, Inc.* 535 16,168

Pzena Investment Management, Websense, Inc.* 710 15,868

Inc. — Class A 100 948 Net 1 UEPS Technologies, Inc.* 15,854

First Acceptance Corp.* 270 918 L-1 Identity Solutions, Inc.* 15,738

Santander BanCorp 80 864 MKS Instruments, Inc.* 790 15,729

Meruelo Maddux Properties, Inc.* 830 SRA International, Inc. — Class A* 15,162

Hallmark Financial Services, Inc.* 818 Benchmark Electronics, Inc.* 15,066

Brooklyn Federal Bancorp, Inc. 740 MPS Group, Inc.* 1,490 15,019

Federal Agricultural Mortgage Arris Group, Inc.* 1,940 14,996

Corp. 149 611 3Com Corp.* 6,370 14,842

FX Real Estate and Entertainment, EarthLink, Inc.* 1,730 14,705

Inc.* 160 166 Avocent Corp.* 710 14,527

Quest Software, Inc.* 1,140 14,467

Tekelec* 1,030 14,410

Rofin-Sinar Technologies, Inc.* 14,387

Emulex Corp.* 1,329 14,180

Infinera Corp.* 1,470 14,053

ValueClick, Inc.* 1,370 14,015

FEI Co.* 580 13,810

Semtech Corp.* 980 13,681

Formfactor, Inc.* 769 13,396

Cognex Corp. 660 13,306

Coherent, Inc.* 370 13,153

Blackbaud, Inc. 710 13,099

Lawson Software, Inc.* 1,870 13,090

Plexus Corp.* 630 13,041

THQ, Inc.* 1,050 12,642

Harmonic, Inc.* 1,490 12,590

Tessera Technologies, Inc.* 12,418

Euronet Worldwide, Inc.* 740 12,380

Imation Corp. 542 12,244

Acxiom Corp. 970 12,164

Cymer, Inc.* 480 12,158

RF Micro Devices, Inc.* 4,160 12,147

Scansource, Inc.* 420 12,092

Cabot Microelectronics Corp.* 11,870

Checkpoint Systems, Inc.* 630 11,857

Quality Systems, Inc. 280 11,833

MTS Systems Corp. 280 11,788

TiVo, Inc.* 1,610 11,785

Sanmina-SCI Corp.* 8,390 11,746

Electronics for Imaging, Inc.* 11,687

Data Domain, Inc.* 520 11,580

Power Integrations, Inc.* 480 11,568

Avid Technology, Inc.* 480 11,549

United Online, Inc. 1,220 11,480

SYKES Enterprises, Inc.* 520 11,419

Wind River Systems, Inc.* 11,400

3,540,114

Foundry Networks, Inc.* 2,300 41,883

Sybase, Inc.* 1,250 38,275

Micros Systems, Inc.* 1,290 34,391

Parametric Technology Corp.* 33,488

Polycom, Inc.* 1,380 31,919

Microsemi Corp.* 1,240 31,595

Anixter International, Inc.* 470 27,970

CACI International, Inc. — Class A* 27,805

Concur Technologies, Inc.* 26,017

PMC - Sierra, Inc.* 3,460 25,673

Jack Henry & Associates, Inc. 23,989

Perot Systems Corp. — Class A* 23,769

Solera Holdings, Inc.* 820 23,550

VistaPrint Ltd.* 700 22,988

Atheros Communications, Inc.* 22,165

TIBCO Software, Inc.* 2,950 21,594

Skyworks Solutions, Inc.* 21,569

Gartner, Inc. — Class A* 940 21,319

Wright Express Corp.* 703 20,985

Fair Isaac Corp. 887 20,445

Macrovision Solutions Corp.* 19,994

Take-Two Interactive Software, Inc. 19,844

Blackboard, Inc.* 490 19,742

Digital River, Inc.* 590 19,116

Ariba, Inc.* 1,350 19,075

Intermec, Inc.* 970 19,051

Mantech International Corp. —

Class A* 320 18,973

Comtech Telecommunications

Corp.* 380 18,711

Informatica Corp.* 1,400 18,186

Omniture, Inc.* 990 18,176

VeriFone Holdings, Inc.* 1,080 17,863

379

110

700

310

710

1,030

680

670

90

1,070

50

470

760

370

839

1,140

1,820

555

680

1,180

1,370

940

2,580

1,300

1,210

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

68 | See Notes to Financial Statements.

September 30, 2008

DealerTrack Holdings, Inc.* $ 11,283 RealNetworks, Inc.* 1,430 $ 7,264

Riverbed Technology, Inc.* 11,143 Art Technology Group, Inc.* 7,146

Amkor Technology, Inc.* 1,720 10,956 Monolithic Power Systems, Inc.* 7,122

Triquint Semiconductor, Inc.* 10,878 Advanced Energy Industries, Inc.* 7,114

MAXIMUS, Inc. 290 10,684 Ness Technologies, Inc.* 620 7,111

Ultimate Software Group, Inc.* 10,530 Micrel, Inc. 780 7,075

Hittite Microwave Corp.* 310 10,416 CTS Corp. 530 6,773

Rogers Corp.* 280 10,354 Cavium Networks, Inc.* 480 6,758

Sapient Corp.* 1,390 10,328 Zoran Corp.* 820 6,691

Interwoven, Inc.* 720 10,166 TTM Technologies, Inc.* 670 6,646

Littelfuse, Inc.* 340 10,108 Cogent, Inc.* 650 6,643

Palm, Inc. 1,690 10,089 Netezza Corp.* 620 6,578

Heartland Payment Systems, Inc. 9,968 SI International, Inc.* 210 6,310

Insight Enterprises, Inc.* 740 9,923 Finisar Corp.* 6,240 6,302

Sycamore Networks, Inc.* 9,755 Adaptec, Inc.* 1,910 6,265

CSG Systems International, Inc.* 9,641 China Security & Surveillance

Black Box Corp. 279 9,634 Technology, Inc.* 450 6,246

Technitrol, Inc. 650 9,613 JDA Software Group, Inc.* 6,236

ACI Worldwide, Inc.* 540 9,461 Silicon Image, Inc.* 1,160 6,194

ViaSat, Inc.* 400 9,432 Newport Corp.* 570 6,145

Sonus Networks, Inc.* 3,220 9,274 Electro Scientific Industries, Inc.* 6,115

OmniVision Technologies, Inc.* 9,242 Applied Micro Circuits Corp.* 6,100

ATMI, Inc.* 510 9,170 Starent Networks Corp.* 470 6,082

Advent Software, Inc.* 260 9,160 SYNNEX Corp.* 270 6,032

Tyler Technologies, Inc.* 600 9,102 Sigma Designs, Inc.* 420 5,972

Mastec, Inc.* 680 9,037 Ciber, Inc.* 850 5,941

Standard Microsystems Corp.* 8,993 Utstarcom, Inc.* 1,750 5,897

Manhattan Associates, Inc.* 8,713 OSI SYSTEMS INC* 250 5,877

Entegris, Inc.* 1,800 8,712 InfoSpace, Inc. 540 5,859

Daktronics, Inc. 520 8,663 IPG Photonics Corp.* 300 5,853

Vocus, Inc.* 250 8,490 Terremark Worldwide, Inc.* 5,771

Diodes, Inc.* 460 8,487 Stratasys, Inc.* 330 5,765

Netgear, Inc.* 560 8,400 Emcore Corp.* 1,160 5,730

Brooks Automation, Inc.* 999 8,352 Cohu, Inc. 360 5,695

MicroStrategy, Inc. — Class A* 8,334 Brightpoint, Inc.* 790 5,688

Powerwave Technologies, Inc.* 8,237 Cirrus Logic, Inc.* 1,030 5,613

SPSS, Inc.* 280 8,221 Integral Systems, Inc.* 270 5,608

Dycom Industries, Inc.* 630 8,203 EMS Technologies, Inc.* 250 5,577

Commvault Systems, Inc.* 680 8,194 RightNow Technologies, Inc.* 5,531

Netlogic Microsystems, Inc.* 8,165 Constant Contact, Inc.* 320 5,462

Taleo Corp.* 410 8,155 Bel Fuse, Inc. — Class B 190 5,409

MercadoLibre, Inc.* 400 8,140 Methode Electronics, Inc. —

SAVVIS, Inc.* 590 7,930 Class A 600 5,364

Bankrate, Inc.* 200 7,782 Faro Technologies, Inc.* 260 5,296

DTS, Inc. — Class A* 279 7,765 Symyx Technologies, Inc.* 530 5,252

Park Electrochemical Corp. 7,757 Volterra Semiconductor Corp.* 5,092

EPIQ Systems, Inc.* 560 7,616 Supertex, Inc.* 180 5,069

MSC.Software Corp.* 710 7,597 AsiaInfo Holdings, Inc.* 550 5,049

TNS, Inc.* 390 7,554 Universal Display Corp.* 460 5,042

Epicor Software Corp.* 940 7,417 Netscout Systems, Inc.* 470 5,001

Veeco Instruments, Inc.* 500 7,405 Actel Corp.* 399 4,980

ModusLink Global Solutions, Inc.* 7,400 Internet Capital Group, Inc.* 4,947

Blue Coat Systems, Inc.* 520 7,379 Ixia* 670 4,938

Greenfield Online, Inc.* 420 7,308 comScore, Inc.* 280 4,936

Forrester Research, Inc.* 249 7,301 Syntel, Inc. 200 4,900

670

890

2,030

410

2,271

520

390

390

3,020

550

410

430

810

1,020

360

390

840

140

2,080

440

270

320

400

770

610

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 69

September 30, 2008

Neutral Tandem, Inc.* 260 $ 4,820 Perficient, Inc.* 510 $ 3,386

S1 Corp.* 780 4,774 Gerber Scientific, Inc.* 370 3,382

Seachange International, Inc.* 4,733 i2 Technologies, Inc.* 250 3,372

Extreme Networks, Inc.* 1,400 4,718 Eagle Test Systems, Inc.* 220 3,368

Echelon Corp.* 469 4,634 Actuate Corp.* 960 3,360

Rackable Systems, Inc.* 470 4,611 Advanced Analogic Technologies,

Secure Computing Corp.* 840 4,603 Inc.* 720 3,348

LoopNet, Inc.* 460 4,522 Synchronoss Technologies, Inc.* 3,293

Exar Corp.* 590 4,519 FalconStor Software, Inc.* 600 3,216

Ultratech, Inc.* 370 4,477 Mercury Computer Systems, Inc.* 3,204

SonicWALL, Inc.* 840 4,402 Global Cash Access Holdings, Inc.* 3,188

Vasco Data Security International* 4,351 Super Micro Computer, Inc.* 3,154

NIC, Inc. 630 4,347 Spansion, Inc.* 2,020 3,131

Move, Inc.* 2,030 4,304 Harris Stratex Networks, Inc. —

Silicon Storage Technology, Inc.* 4,303 Class A* 400 3,124

Photon Dynamics, Inc.* 280 4,298 Transmeta Corp.* 190 3,080

Hutchinson Technology, Inc.* 4,285 iGate Corp.* 350 3,035

Aruba Networks, Inc.* 830 4,258 Novatel Wireless, Inc.* 500 3,030

Vignette Corp.* 390 4,189 Zygo Corp., Inc.* 240 3,019

Digi International, Inc.* 410 4,182 Radisys Corp.* 350 3,010

SuccessFactors, Inc.* 380 4,142 Pegasystems, Inc. 230 2,969

Hughes Communications, Inc.* 4,037 Semitool, Inc.* 360 2,945

Rudolph Technologies, Inc.* 4,022 Keynote Systems, Inc.* 220 2,915

Measurement Specialties, Inc.* 4,011 DSP Group, Inc.* 380 2,907

Switch & Data Facilities Co., Inc.* 3,984 MRV Communications, Inc.* 2,902

Oplink Communications, Inc.* 3,983 NCI, Inc.* 100 2,848

Cass Information Systems, Inc. 3,943 Ebix, Inc.* 30 2,819

Marchex, Inc. 380 3,910 Magma Design Automation, Inc.* 2,814

ShoreTel, Inc.* 680 3,903 Globecomm Systems, Inc.* 2,797

Maxwell Technologies, Inc.* 3,869 PC-Tel, Inc. 300 2,796

Hypercom Corp.* 970 3,861 Immersion Corp.* 480 2,794

Kulicke & Soffa Industries, Inc.* 3,833 DemandTec, Inc.* 309 2,784

Radiant Systems, Inc.* 440 3,824 Internap Network Services Corp.* 2,784

STEC, Inc.* 490 3,773 Anadigics, Inc.* 990 2,782

The Knot, Inc.* 450 3,757 DivX, Inc.* 429 2,776

Lattice Semiconductor Corp.* 3,749 3PAR, Inc.* 430 2,774

Mattson Technology, Inc.* 780 3,689 Axcelis Technologies, Inc.* 2,754

BearingPoint, Inc.* 3,440 3,681 Compellent Technologies, Inc.* 2,728

Pericom Semiconductor Corp.* 3,675 Gevity HR, Inc. 370 2,694

TeleCommunication Systems, Cray, Inc.* 520 2,694

Inc. — Class A* 530 3,662 Double-Take Software, Inc.* 2,687

Bottomline Technologies, Inc.* 3,640 Monotype Imaging Holdings, Inc.* 2,671

Agilysys, Inc. 360 3,632 Loral Space & Communications,

Symmetricom, Inc.* 730 3,628 Inc.* 180 2,659

Intevac, Inc.* 340 3,618 Ceva, Inc.* 320 2,656

Parkervision, Inc.* 360 3,600 Rackspace Hosting* 270 2,638

Online Resources Corp.* 460 3,574 Opnet Technologies, Inc.* 210 2,558

Hackett Group, Inc.* 650 3,536 Liquidity Services Inc.* 230 2,496

IXYS Corp. 380 3,454 Presstek, Inc.* 440 2,482

LTX-Credence Corp.* 1,980 3,445 Orbcomm, Inc.* 500 2,465

infoGROUP, Inc. 520 3,437 Acme Packet, Inc.* 430 2,464

Phoenix Technologies, Ltd.* 3,436 MIPS Technology, Inc.* 700 2,457

Quantum Corp.* 3,250 3,412 Internet Brands, Inc. — Class A* 2,440

Smith Micro Software, Inc.* 3,408 Chordiant Software, Inc.* 470 2,411

Kopin Corp.* 1,090 3,401 Safeguard Scientifics, Inc.* 2,400

490

350

360

630

420

350

1,320

370

110

480

230

320

2,480

330

110

700

320

290

850

800

1,820

1,620

220

350

270

350

240

430

350

480

1,920

MARKET MARKET

Total Information Technology

INDUSTRIALS 7.8%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

70 | See Notes to Financial Statements.

September 30, 2008

Website Pros, Inc.* 440 $ 2,376 Guidance Software, Inc.* 150 $ 704

Anaren, Inc.* 230 2,335 Nextwave Wireless, Inc.* 770 462

Sourcefire, Inc.* 320 2,333 Midway Games, Inc.* 180 427

Microtune, Inc.* 860 2,305 Elixir Gaming Technologies, Inc.* 353

Trident Microsystems, Inc.* 2,304 Entropic Communications, Inc.* 212

Techwell, Inc.* 240 2,263

PLX Technology, Inc.* 440 2,253

Airvana, Inc.* 379 2,232

SupportSoft, Inc.* 730 2,190

Cogo Group, Inc.* 410 2,161

CPI International, Inc.* 149 2,158

Smart Modular Technologies

WWH, Inc.* 700 2,100

Rimage Corp.* 150 2,094

Entrust, Inc.* 970 2,086

Multi-Fineline Electronix, Inc.* 2,071

Interactive Intelligence, Inc.* 1,984

NetSuite, Inc.* 110 1,982

NVE Corp.* 70 1,982

American Software, Inc. — Class A 1,962

Renaissance Learning, Inc. 150 1,949

OpenTV Corp.* 1,370 1,932

ExlService Holdings, Inc.* 220 1,932

BigBand Networks, Inc.* 520 1,919

Callidus Software, Inc.* 480 1,901

Asyst Technologies, Inc.* 789 1,894

PROS Holdings, Inc.* 200 1,878

KEMET Corp.* 1,330 1,809

Bookham, Inc.* 1,589 1,796

Dice Holdings, Inc.* 250 1,775

TheStreet.com, Inc. 290 1,737

Unica Corp.* 220 1,725

Isilon Systems, Inc.* 390 1,720

ICx Technologies, Inc.* 220 1,696

China Information Security

Technology, Inc.* 360 1,692

Comverge, Inc.* 340 1,564

Ultra Clean Holdings* 310 1,562

Sonic Solutions, Inc.* 350 1,540

TechTarget, Inc.* 220 1,540

Rubicon Technology, Inc.* 210 1,516

SiRF Technology Holdings, Inc.* 1,430

QAD, Inc. 200 1,384

Opnext, Inc.* 300 1,377

Photronics, Inc.* 660 1,241

Deltek, Inc.* 200 1,216

PC Mall, Inc.* 170 1,161

Limelight Networks Inc.* 460 1,150

HSW International, Inc.* 440 1,144

PC Connection, Inc.* 150 1,004

Avanex Corp.* 209 978

Virtusa Corp.* 140 911

AuthenTec, Inc.* 400 860

ArcSight, Inc.* 110 839

Bidz.com, Inc.* 89 771

2,772,812

Waste Connections, Inc.* 41,469

Energy Conversion Devices, Inc.* 41,357

Wabtec Corp. 760 38,935

Watson Wyatt & Co. Holdings 33,319

Woodward Governor Co. 930 32,801

Curtiss-Wright Corp. 710 32,269

Teledyne Technologies, Inc.* 32,010

Clarcor, Inc. 800 30,360

Moog, Inc. — Class A* 670 28,730

GrafTech International Ltd.* 28,558

EMCOR Group, Inc.* 1,070 28,162

Brady Corp. — Class A 789 27,836

Acuity Brands, Inc. 640 26,726

Nordson Corp. 530 26,028

Belden, Inc. 795 25,273

Hexcel Corp.* 1,752 23,985

Tetra Tech, Inc.* 930 22,376

Actuant Corp. — Class A 880 22,211

Orbital Sciences Corp.* 920 22,052

HUB Group, Inc. — Class A* 21,837

Herman Miller, Inc. 890 21,778

IKON Office Solutions, Inc. 21,773

Regal-Beloit Corp. 510 21,685

Baldor Electric Co. 730 21,031

Clean Harbors, Inc.* 309 20,873

Perini Corp.* 800 20,632

Kaydon Corp. 440 19,826

ESCO Technologies, Inc.* 410 19,750

Huron Consulting Group, Inc.* 18,803

Mine Safety Appliances Co. 18,679

Granite Construction, Inc. 520 18,626

Watsco, Inc. 370 18,604

Esterline Technologies Corp.* 18,211

TransDigm Group, Inc.* 530 18,142

Applied Industrial Technologies, Inc. 18,043

Genesee & Wyoming, Inc. —

Class A* 480 18,010

HNI Corp. 700 17,738

United Stationers, Inc.* 370 17,697

Knight Transportation, Inc. 17,598

UAL Corp. 1,990 17,492

Geo Group, Inc.* 810 16,370

Mueller Water Products, Inc. —

Class A 1,820 16,344

Resources Connection, Inc.* 16,222

Franklin Electric Co., Inc. 360 16,038

Simpson Manufacturing Co., Inc. 15,983

1,070

960

150

140

220

360

960

1,209

710

670

560

1,890

580

1,280

330

490

460

670

1,037

720

590

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 71

September 30, 2008

American Superconductor Corp.* $ 15,556 Ameron International Corp. $ 10,031

Ceradyne, Inc.* 420 15,397 American Reprographics Co.* 10,005

Barnes Group, Inc. 760 15,367 NCI Building Systems, Inc.* 9,842

Navigant Consulting, Inc.* 760 15,116 Raven Industries, Inc. 250 9,837

II-VI, Inc.* 390 15,077 Comfort Systems USA, Inc. 9,686

ABM Industries, Inc. 690 15,070 Interface, Inc. — Class A 840 9,551

SkyWest, Inc. 920 14,702 Viad Corp. 330 9,501

Middleby Corp.* 269 14,609 School Specialty, Inc.* 299 9,326

Werner Enterprises, Inc. 670 14,546 Universal Forest Products, Inc. 9,077

CoStar Group, Inc.* 310 14,071 Pacer International, Inc. 550 9,058

Lindsay Manufacturing Co. 13,822 Quanex Building Products Corp. 8,992

Heartland Express, Inc. 880 13,658 Astec Industries, Inc.* 290 8,941

Robbins & Myers, Inc. 440 13,609 Tennant Co. 260 8,908

Mueller Industries, Inc. 590 13,576 Gorman-Rupp Co. 230 8,676

JetBlue Airways Corp.* 2,740 13,563 RSC Holdings, Inc.* 750 8,520

Alaska Air Group, Inc.* 658 13,417 NACCO Industries, Inc. — Class A 8,507

Korn/Ferry International, Inc.* 13,009 EnerSys* 430 8,475

Chart Industries, Inc.* 450 12,852 Atlas Air Worldwide Holdings Co.,

Albany International Corp. — Inc.* 210 8,465

Class A 470 12,845 American Science & Engineering,

Genco Shipping & Trading Ltd. 12,631 Inc. 140 8,362

Briggs & Stratton Corp. 780 12,620 Interline Brands, Inc.* 510 8,267

Watts Industries, Inc. — Class A 12,581 Axsys Technologies, Inc.* 139 8,193

Seaboard Corp. 10 12,570 Advisory Board Co.* 270 8,143

A.O. Smith Corp. 320 12,541 Heidrick & Struggles International,

Evergreen Solar, Inc.* 2,270 12,530 Inc. 270 8,140

Rollins, Inc. 660 12,527 AZZ, Inc.* 190 7,860

Forward Air Corp. 460 12,526 Gibraltar Industries, Inc. 420 7,858

Old Dominion Freight Line, Inc.* 12,470 Kelly Services, Inc. — Class A 7,811

Healthcare Services Group 12,437 Allegiant Travel Co.* 220 7,770

Arkansas Best Corp. 360 12,128 Teletech Holdings, Inc.* 620 7,713

EnPro Industries, Inc.* 320 11,891 Exponent, Inc.* 230 7,611

Triumph Group, Inc. 260 11,885 M&F Worldwide Corp.* 180 7,200

Circor International, Inc. 270 11,726 American Ecology Corp. 260 7,194

Deluxe Corp. 810 11,656 Taser International, Inc.* 990 7,079

Knoll, Inc. 770 11,642 Columbus McKinnon Corp. —

Titan International, Inc. 540 11,513 Class A* 300 7,071

Heico Corp. 350 11,487 CBIZ, Inc.* 820 6,929

RBC Bearings, Inc.* 340 11,455 Furmanite Corp.* 670 6,928

PHH Corp.* 860 11,429 Apogee Enterprises, Inc. 460 6,914

Kaman Corp. — Class A 400 11,392 Rush Enterprises, Inc. — Class A* 6,784

TrueBlue, Inc.* 700 11,312 Tredegar Corp. 380 6,760

Beacon Roofing Supply, Inc.* 10,934 Blount International, Inc.* 600 6,678

US Airways Group, Inc.* 1,800 10,854 Insituform Technologies, Inc. —

Badger Meter, Inc. 230 10,798 Class A* 440 6,582

YRC Worldwide, Inc.* 900 10,764 DynCorp International, Inc. —

Administaff, Inc. 393 10,697 Class A* 390 6,536

Mcgrath Rentcorp 370 10,663 FuelCell Energy, Inc.* 1,080 6,512

Mobile Mini, Inc.* 550 10,631 Tecumseh Products Co. — Class A* 6,510

Layne Christensen Co.* 300 10,629 ACCO Brands Corp.* 860 6,484

Team, Inc.* 290 10,475 Ennis Inc. 410 6,339

Federal Signal Corp. 760 10,412 Amerco, Inc.* 150 6,290

Eagle Bulk Shipping Inc. 740 10,316 Griffon Corp.* 690 6,224

G & K Services, Inc. — Class A 10,245 Altra Holdings, Inc.* 420 6,199

AAR Corp.* 610 10,120 GeoEye, Inc.* 279 6,174

660

140

580

310

725

260

190

590

90

730

380

460

440

410

680

530

700

260

310

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

72 | See Notes to Financial Statements.

September 30, 2008

Cubic Corp. 250 $ 6,148 Multi-Color Corp. 170 $ 4,061

Cascade Corp. 140 6,133 Ducommun, Inc. 170 4,060

Northwest Pipe Co.* 140 6,107 Celadon Group, Inc.* 350 4,015

Gencorp, Inc.* 900 6,066 3D Systems Corp.* 280 3,990

American Commercial Lines, Inc.* 5,958 Pike Electric Corp.* 270 3,977

Hawaiian Holdings, Inc.* 630 5,846 Great Lakes Dredge & Dock Corp.

Cenveo, Inc.* 760 5,844 Co. 630 3,975

Kenexa Corp. — Class A* 360 5,684 AAON, Inc. 210 3,820

Colfax Corp.* 340 5,681 American Woodmark Corp. 3,817

Cornell Companies, Inc.* 207 5,626 Insteel Industries, Inc. 280 3,805

Republic Airways Holdings, Inc.* 5,605 Aceto Corp. 390 3,740

Freightcar America, Inc. 190 5,561 Schawk, Inc. 240 3,629

Standex International Corp. 5,550 Herley Industries, Inc.* 210 3,591

Innerworkings, Inc.* 500 5,545 Duff & Phelps Corp. — Class A* 3,575

Fuel Tech, Inc.* 299 5,409 Orion Marine Group, Inc.* 3,567

Kimball International, Inc. — Class B 5,400 Teekay Tankers Ltd. 210 3,555

Polypore International, Inc.* 5,378 PeopleSupport, Inc.* 300 3,507

Wabash National Corp. 565 5,339 Met-Pro Corp. 240 3,502

Encore Wire Corp. 290 5,252 Thermadyne Holdings Corp.* 3,501

GT Solar International, Inc.* 5,208 Applied Signal Technology, Inc. 3,476

EnergySolutions, Inc. 520 5,200 Odyssey Marine Exploration, Inc.* 3,450

LB Foster Co. — Class A* 170 5,171 Ampco-Pittsburgh Corp. 130 3,367

Stanley, Inc.* 140 5,167 Courier Corp. 160 3,258

K-Tron International, Inc.* 40 5,153 LECG Corp.* 400 3,228

Hill International, Inc.* 370 5,125 NN, Inc. 250 3,213

Aerovironment, Inc.* 160 5,112 DXP Enterprises, Inc.* 60 3,199

Greenbrier Companies, Inc. 5,073 Standard Parking Corp.* 140 3,111

Kadant, Inc.* 220 5,009 Arlington Tankers Ltd. 200 3,076

Argon ST, Inc.* 210 4,933 Ultrapetrol Bahamas Ltd.* 390 3,062

Kforce, Inc.* 480 4,901 Flow International Corp.* 590 2,997

Powell Industries, Inc.* 120 4,897 Capstone Turbine Corp.* 2,967

Consolidated Graphics, Inc.* 4,853 Hurco Companies, Inc.* 100 2,957

Bowne & Co., Inc. 420 4,851 Sterling Construction Co., Inc.* 2,916

Houston Wire & Cable Co. 4,808 PMFG, Inc.* 200 2,898

TAL International Group, Inc. 4,789 Force Protection, Inc.* 1,080 2,894

Gehl Co.* 160 4,709 LaBarge, Inc.* 190 2,861

Sun Hydraulics Corp. 180 4,687 Waste Services Inc.* 380 2,816

Marten Transport Ltd.* 240 4,682 LMI Aerospace, Inc.* 140 2,815

CRA International, Inc.* 170 4,672 Saia, Inc.* 210 2,789

CDI Corp. 209 4,667 Hudson Highland Group, Inc.* 2,780

Ladish Co., Inc.* 230 4,658 Valence Technology, Inc.* 800 2,760

Dynamic Materials Corp. 200 4,642 Vicor Corp. 310 2,753

Horizon Lines, Inc. — Class A 4,639 H&E Equipment Services, Inc.* 2,512

Electro Rent Corp. 340 4,566 Lydall, Inc.* 260 2,504

AirTran Holdings, Inc.* 1,850 4,496 Titan Machinery, Inc.* 120 2,497

Ener1, Inc.* 570 4,452 LSI Industries, Inc. 300 2,481

On Assignment, Inc.* 560 4,413 Commercial Vehicle Group, Inc.* 2,410

Trex Co., Inc.* 240 4,346 American Railcar Industries, Inc. 2,406

Graham Corp. 80 4,328 Patriot Transportation Holding, Inc.* 2,370

Dynamex, Inc.* 150 4,269 Preformed Line Products Co. 2,334

Spherion Corp.* 870 4,237 Park-Ohio Holdings Corp.* 2,326

Casella Waste Systems, Inc. — China Fire & Security Group, Inc.* 2,312

Class A* 360 4,226 TBS International Ltd. — Class A* 2,288

Michael Baker Corp.* 120 4,176 Textainer Group Holdings Ltd. 2,279

DHT Maritime, Inc. 620 4,166 TurboChef Technologies, Inc.* 2,276

560

170

550

200

170

340

500

250

210

480

200

760

260

2,300

160

180

280

230

400

470

260

339

150

30

40

130

220

170

150

370

MARKET MARKET

Total Industrials

HEALTH CARE 6.9%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 73

September 30, 2008

Standard Register Co. 230 $ 2,266 United Therapeutics Corp.* $ 37,861

First Advantage Corp. — Class A* 2,248 Immucor, Inc.* 1,110 35,476

Metalico, Inc.* 380 2,242 Steris Corp. 930 34,949

COMSYS IT Partners, Inc.* 2,236 Psychiatric Solutions, Inc.* 880 33,396

Advanced Battery Technologies, Onyx Pharmaceuticals, Inc.* 31,838

Inc.* 690 2,229 Owens & Minor, Inc. 650 31,525

Fushi Copperweld, Inc.* 230 2,229 Bio-Rad Laboratories, Inc. —

Energy Recovery, Inc.* 230 2,206 Class A* 300 29,736

Universal Truckload Services, Inc.* 2,192 NuVasive, Inc.* 560 27,625

International Shipholding Corp.* 2,190 Masimo Corp.* 730 27,156

PRG-Schultz International, Inc.* 2,150 Magellan Health Services, Inc.* 26,278

Key Technology, Inc.* 90 2,133 Healthsouth Corp.* 1,390 25,618

Xerium Technologies, Inc. 330 2,125 Parexel International Corp.* 25,507

Integrated Electrical Services, Inc.* 2,107 Haemonetics Corp.* 410 25,305

Microvision, Inc.* 1,070 2,076 West Pharmaceutical Services,

China Architectural Engineering, Inc. 510 24,898

Inc.* 290 2,056 AMERIGROUP Corp.* 982 24,786

Beacon Power Corp.* 1,400 2,030 Isis Pharmaceuticals, Inc.* 24,153

VSE Corp. 60 2,024 Sequenom, Inc.* 890 23,692

ICF International, Inc.* 100 1,975 Thoratec Corp.* 860 22,575

Lawson Products, Inc. 70 1,936 Valeant Pharmaceuticals

Twin Disc, Inc. 140 1,926 International* 1,100 22,517

China BAK Battery, Inc.* 520 1,872 Regeneron Pharmaceuticals, Inc.* 21,372

Volt Information Sciences, Inc.* 1,796 Amedisys, Inc.* 420 20,441

Power-One, Inc.* 1,180 1,711 American Medical Systems

Alamo Group, Inc. 100 1,705 Holdings, Inc.* 1,150 20,424

PowerSecure International, Inc.* 1,636 Varian, Inc.* 470 20,163

Flanders Corp.* 250 1,575 Alkermes, Inc.* 1,510 20,083

EnerNOC, Inc.* 150 1,551 Cubist Pharmaceuticals, Inc.* 19,785

Ultralife Batteries, Inc.* 200 1,550 Celera Corp.* 1,260 19,467

Trimas Corp.* 230 1,509 XenoPort, Inc.* 400 19,396

Builders FirstSource, Inc.* 250 1,498 PSS World Medical, Inc.* 980 19,110

Harbin Electric, Inc.* 120 1,422 Medicines Co.* 820 19,040

CAI International, Inc.* 120 1,327 Dionex Corp.* 290 18,429

Coleman Cable Inc.* 130 1,304 Meridian Bioscience, Inc. 630 18,295

Amrep Corp. PLC* 30 1,272 Eclipsys Corp.* 859 17,996

Plug Power, Inc.* 1,270 1,257 Wright Medical Group, Inc.* 17,960

Akeena Solar, Inc.* 330 1,251 PDL BioPharma, Inc. 1,890 17,596

Omega Flex, Inc. 50 1,128 Healthspring, Inc.* 780 16,505

ICT Group, Inc.* 140 1,127 Martek Biosciences Corp. 520 16,338

Accuride Corp.* 560 896 Luminex Corp.* 650 16,256

Medis Technologies Ltd.* 490 882 Alnylam Pharmaceuticals, Inc.* 16,212

Protection One, Inc.* 100 881 Sciele Pharma, Inc. 500 15,395

United Capital Corp.* 30 795 Chemed Corp. 370 15,192

Orion Energy Systems Inc.* 785 Viropharma, Inc.* 1,110 14,563

Ascent Solar Technologies, Inc.* 724 Conmed Corp.* 449 14,368

Dollar Thrifty Automotive Group, Phase Forward, Inc.* 680 14,219

Inc.* 340 656 Centene Corp.* 690 14,152

China Direct, Inc.* 110 464 Acorda Therapeutics, Inc.* 14,071

Human Genome Sciences, Inc.* 13,589

HealthExtras, Inc.* 520 13,582

Rigel Pharmaceuticals, Inc.* 13,543

Alpharma, Inc. — Class A* 13,280

Medicis Pharmaceutical Corp. —

Class A 890 13,270

2,627,992

Alexion Pharmaceuticals, Inc.* 47,553

Myriad Genetics, Inc.* 710 46,065

OSI Pharmaceuticals, Inc.* 900 44,361

360

160

230

880

90

100

240

640

890

120

1,430

979

200

270

890

590

560

140

119

590

2,140

580

360

1,210

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

74 | See Notes to Financial Statements.

September 30, 2008

Medarex, Inc.* 2,020 $ 13,069 Emeritus Corp.* 309 $ 7,694

Volcano Corp.* 750 12,967 Universal American Financial Corp.* 7,558

Savient Pharmaceuticals, Inc.* 12,823 SurModics, Inc.* 240 7,558

AmSurg Corp.* 500 12,735 Quidel Corp.* 450 7,384

Mentor Corp. 530 12,646 Durect Corp.* 1,289 7,218

Apria Healthcare Group, Inc.* 12,586 Molina Healthcare, Inc.* 230 7,130

Cepheid, Inc.* 900 12,447 Res-Care, Inc.* 390 7,075

Integra LifeSciences Holdings Halozyme Therapeutics, Inc.* 7,046

Corp.* 280 12,328 Par Pharmaceutical Companies,

Invacare Corp. 510 12,311 Inc.* 550 6,759

Kindred Healthcare, Inc.* 440 12,131 Albany Molecular Research, Inc.* 6,693

KV Pharmaceutical Co.* 520 11,809 Abaxis, Inc.* 339 6,678

ArthroCare Corp.* 420 11,642 LHC Group, Inc.* 230 6,550

Auxilium Pharmaceuticals, Inc.* 11,340 Neogen Corp.* 230 6,481

Allscripts Healthcare Solutions, Enzo Biochem, Inc.* 590 6,478

Inc.* 900 11,196 Omnicell, Inc.* 490 6,443

ev3, Inc.* 1,110 11,144 Cyberonics, Inc.* 379 6,443

athenahealth, Inc.* 330 10,979 MWI Veterinary Supply, Inc.* 6,286

Landauer, Inc. 150 10,912 Sirona Dental Systems, Inc.* 6,286

Zoll Medical Corp.* 330 10,798 Hanger Orthopedic Group, Inc.* 6,282

PharMerica Corp.* 480 10,795 Questcor Pharmaceuticals, Inc.* 6,248

Datascope Corp. 209 10,791 Allos Therapeutics, Inc.* 840 6,224

Gentiva Health Services, Inc.* 10,776 National Healthcare Corp. 6,126

Bruker BioSciences Corp.* 10,664 Angiodynamics, Inc.* 379 5,988

Align Technology, Inc.* 980 10,613 Arena Pharmaceuticals, Inc.* 5,850

Medivation, Inc.* 400 10,584 CryoLife, Inc.* 440 5,773

Analogic Corp. 210 10,450 Array Biopharma, Inc.* 750 5,760

AMAG Pharmaceuticals, Inc.* 10,418 Progenics Pharmaceuticals, Inc.* 5,590

Symmetry Medical, Inc.* 560 10,394 Assisted Living Concepts, Inc. —

CV Therapeutics, Inc.* 960 10,368 Class A* 870 5,542

Seattle Genetics, Inc.* 960 10,272 GTx, Inc.* 290 5,516

Theravance, Inc.* 820 10,217 Pharmasset, Inc.* 270 5,387

Exelixis, Inc.* 1,660 10,093 NPS Pharmaceuticals, Inc.* 5,355

Natus Medical, Inc.* 440 9,970 Odyssey HealthCare, Inc.* 5,278

Sun Healthcare Group, Inc.* 9,969 Pain Therapeutics, Inc.* 540 5,276

Sunrise Senior Living, Inc.* 9,791 RehabCare Group, Inc.* 290 5,249

Vital Signs, Inc. 130 9,607 Nektar Therapeutics* 1,460 5,241

Abiomed, Inc.* 539 9,567 Enzon Pharmaceuticals, Inc.* 5,240

Kendle International, Inc.* 210 9,389 Bio-Reference Labs, Inc.* 180 5,202

HMS Holdings Corp.* 390 9,344 IRIS International, Inc.* 290 5,191

AMN Healthcare Services, Inc.* 9,312 ICU Medical, Inc.* 170 5,170

inVentiv Health, Inc.* 520 9,183 Momenta Pharmaceuticals, Inc.* 5,113

Incyte Corp.* 1,200 9,180 Orthofix International NV* 5,030

Healthways, Inc.* 560 9,033 MedAssets, Inc.* 290 4,988

Greatbatch, Inc.* 360 8,834 Genomic Health, Inc.* 220 4,983

Vivus, Inc.* 1,090 8,655 Life Sciences Research, Inc.* 4,900

InterMune, Inc.* 500 8,555 Geron Corp.* 1,230 4,859

SonoSite, Inc.* 270 8,478 Air Methods Corp.* 170 4,813

Dendreon Corp.* 1,470 8,394 Salix Pharmaceuticals Ltd.* 4,808

Merit Medical Systems, Inc.* 8,259 Osiris Therapeutics, Inc.* 240 4,630

eResearch Technology, Inc.* 8,099 Affymetrix, Inc.* 597 4,621

Cougar Biotechnology, Inc.* 8,014 Akorn, Inc.* 900 4,617

Conceptus, Inc.* 480 7,958 Accuray, Inc.* 569 4,592

RTI Biologics, Inc.* 850 7,947 Noven Pharmaceuticals, Inc.* 4,555

Cross Country Healthcare, Inc.* 7,819 Idera Pharmaceuticals, Inc.* 4,502

620

860

690

960

370

350

160

270

360

850

400

130

800

1,170

269

420

750

520

680

710

710

530

390

270

140

750

440

680

240

390

480

320

MARKET MARKET

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements. | 75

September 30, 2008

Emergency Medical Services Orthovita, Inc.* 1,050 $ 2,730

Corp. — Class A* 150 $ 4,482 Ariad Pharmaceuticals, Inc.* 2,715

Medcath Corp.* 250 4,480 Cynosure, Inc.* 149 2,673

Sangamo Biosciences, Inc.* 4,466 Nighthawk Radiology Holdings,

Skilled Healthcare Group, Inc. — Inc.* 370 2,671

Class A* 280 4,449 Exactech, Inc.* 120 2,669

Vnus Medical Technologies, Inc.* 4,395 Novavax, Inc.* 920 2,668

XOMA Ltd.* 2,090 4,389 Ardea Biosciences, Inc.* 190 2,628

Computer Programs & Systems, Stereotaxis, Inc.* 430 2,602

Inc. 150 4,343 Clinical Data, Inc.* 160 2,573

Cypress Bioscience, Inc.* 590 4,337 IPC The Hospitalist Co., Inc.* 2,570

Pozen, Inc.* 410 4,309 BMP Sunstone Corp.* 370 2,568

Genoptix Inc.* 130 4,247 DexCom, Inc.* 410 2,538

Somanetics Corp.* 190 4,155 Adolor Corp.* 730 2,519

Omrix Biopharmaceuticals, Inc.* 4,126 FGX International Holdings Ltd.* 2,435

Alliance Imaging, Inc.* 400 4,108 Tercica, Inc.* 270 2,414

Indevus Pharmaceuticals, Inc.* 4,087 Inspire Pharmaceuticals, Inc.* 2,392

Insulet Corp.* 290 4,037 BioMimetic Therapeutics, Inc.* 2,323

Almost Family, Inc.* 100 3,955 Spectranetics Corp.* 500 2,315

Zymogenetics, Inc.* 590 3,929 Repligen Corp.* 490 2,308

ImmunoGen, Inc.* 800 3,928 Accelrys, Inc.* 420 2,306

Ligand Pharmaceuticals, Inc. — Lexicon Genetics, Inc.* 1,270 2,261

Class B* 1,330 3,924 PharmaNet Development Group,

Palomar Medical Technologies, Inc.* 310 2,238

Inc.* 290 3,903 Ensign Group, Inc. 130 2,222

Dyax Corp.* 880 3,872 Molecular Insight Pharmaceuticals,

Nabi Biopharmaceuticals* 820 3,821 Inc.* 280 2,150

Synovis Life Technologies, Inc.* 3,764 Caliper Life Sciences, Inc.* 2,128

Vital Images, Inc.* 250 3,750 Caraco Pharm Labs, Inc.* 170 2,127

Corvel Corp.* 130 3,719 Arqule, Inc.* 640 2,061

OraSure Technologies, Inc.* 3,641 Javelin Pharmaceuticals, Inc.* 2,028

Hansen Medical, Inc.* 270 3,629 Synta Pharmaceuticals Corp.* 1,981

Triple-S Management Corp. — Atrion Corp. 19 1,958

Class B* 220 3,584 Columbia Labs, Inc. Com* 740 1,939

Micrus Endovascular Corp.* 3,488 Cantel Medical Corp.* 200 1,924

Kensey Nash Corp.* 110 3,461 TranS1, Inc.* 190 1,879

Orexigen Therapeutics, Inc.* 3,453 Alexza Pharmaceuticals, Inc.* 1,877

US Physical Therapy, Inc.* 190 3,298 Five Star Quality Care, Inc.* 1,875

Metabolix, Inc.* 300 3,264 Providence Service Corp.* 1,862

Optimer Pharmaceuticals, Inc.* 3,260 Chindex International, Inc.* 1,846

Cardiac Science Corp.* 310 3,212 Immunomedics, Inc.* 1,030 1,833

I-Flow Corp.* 340 3,165 Alphatec Holdings, Inc.* 390 1,794

MannKind Corp.* 810 3,127 CardioNet, Inc.* 70 1,747

Capital Senior Living Corp.* 3,063 NxStage Medical, Inc.* 410 1,730

TomoTherapy, Inc.* 650 2,977 Affymax, Inc.* 87 1,727

Idenix Pharmaceuticals, Inc.* 2,892 Nanosphere, Inc.* 200 1,706

Medical Action Industries, Inc.* 2,889 Maxygen Inc.* 400 1,692

Discovery Laboratories, Inc.* 2,861 Targacept, Inc.* 290 1,685

Neurocrine Biosciences, Inc.* 2,861 Cytori Therapeutics, Inc.* 310 1,637

Cadence Pharmaceuticals, Inc.* 2,842 Cytokinetics, Inc.* 295 1,398

Cambrex Corp.* 460 2,829 Acadia Pharmaceuticals, Inc.* 1,394

Obagi Medical Products, Inc.* 2,794 BioForm Medical, Inc.* 350 1,372

Celldex Therapeutics, Inc.* 2,791 RadNet, Inc.* 340 1,363

Depomed, Inc.* 760 2,774 Opko Health, Inc.* 760 1,330

Emergent Biosolutions, Inc.* 2,749 MAP Pharmaceuticals, Inc.* 1,214

1,099

580

210

100

230

220

1,220

670

210

200

760

740

780

260

250

320

380

500

190

410

170

403

400

220

1,530

610

320

520

280

240

210

120

MARKET MARKET

Total Health Care

CONSUMER DISCRETIONARY 6.1%

SHARES VALUE SHARES VALUE

RUSSELL 2000^® FUND

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

76 | See Notes to Financial Statements.

September 30, 2008

Amicus Therapeutics, Inc.* 80 $ 1,210 Interactive Data Corp. 580 $ 14,628

Sucampo Pharmaceuticals, Inc. — Coinstar, Inc.* 440 14,080

Class A* 140 1,194 Tempur-Pedic International, Inc. 13,877

Vision-Sciences, Inc.* 270 1,077 Sonic Corp.* 950 13,841

National Research Corp. 30 920 Bob Evans Farms, Inc. 490 13,372

Acura Pharmaceuticals, Inc.* 914 Buckle, Inc. 240 13,330

Virtual Radiologic Corp.* 110 898 Timberland Co. — Class A* 13,201

MiddleBrook Pharmaceuticals, Inc.* 855 Sally Beauty Holdings, Inc.* 12,814

Cell Genesys, Inc.* 1,359 802 Zale Corp.* 510 12,750

Marshall Edwards, Inc.* 330 710 Brown Shoe Co., Inc. 775 12,694

Rexahn Pharmaceuticals, Inc.* 593 Children’s Place Retail Stores, Inc.* 12,339

Jazz Pharmaceuticals, Inc.* 593 Iconix Brand Group, Inc.* 910 11,903

Biodel, Inc.* 170 570 Meritage Homes Corp.* 480 11,856

Protalix BioTherapeutics, Inc.* 379 American Greetings Corp. —

Class A 770 11,773

Quiksilver, Inc.* 1,990 11,423

Buffalo Wild Wings, Inc.* 279 11,227

Helen of Troy Ltd.* 480 10,930

Ethan Allen Interiors, Inc. 390 10,928

Dress Barn, Inc.* 710 10,856

Jakks Pacific, Inc.* 430 10,711

CEC Entertainment, Inc.* 320 10,624

Dillard’s, Inc. — Class A 900 10,620

Lear Corp.* 1,010 10,605

Stewart Enterprises, Inc. —

Class A 1,320 10,375

Genesco, Inc.* 300 10,044

Unifirst Corp. 230 9,911

Scholastic Corp. 380 9,758

Jos. A. Bank Clothiers, Inc.* 9,744

Standard-Pacific Corp.* 1,960 9,624

Papa John’s International, Inc.* 9,506

Capella Education Co.* 220 9,429

CBRL Group, Inc. 350 9,205

Hibbett Sports Inc.* 450 9,009

Blue Nile, Inc.* 210 9,003

Fred’s, Inc. 630 8,959

P.F. Chang’s China Bistro, Inc.* 8,945

Steiner Leisure Ltd.* 260 8,939

CKE Restaurants, Inc. 830 8,798

Exide Technologies* 1,190 8,782

Charming Shoppes, Inc.* 8,753

Skechers U.S.A., Inc. — Class A* 8,752

NutriSystem, Inc. 480 8,506

Belo Corp. — Class A 1,410 8,404

Jo-Ann Stores, Inc.* 400 8,392

Columbia Sportswear Co. 199 8,350

Stage Stores, Inc. 610 8,333

American Public Education, Inc.* 8,208

99 Cents Only Stores* 740 8,118

ATC Technology Corp.* 340 8,072

Group 1 Automotive, Inc. 370 8,040

Cooper Tire & Rubber Co. 7,998

Tenneco, Inc.* 740 7,866

Cato Corp. — Class A 440 7,722

2,350,065

Aeropostale, Inc.* 1,060 34,037

The Warnaco Group, Inc.* 720 32,609

Tupperware Brands Corp. 980 27,077

Marvel Entertainment, Inc.* 26,288

Bally Technologies, Inc.* 860 26,041

Matthews International Corp. —

Class A 490 24,863

Sotheby’s 1,222 24,513

Wolverine World Wide, Inc. 24,079

Polaris Industries, Inc. 520 23,655

Rent-A-Center, Inc.* 1,050 23,394

Tractor Supply Co.* 530 22,286

Deckers Outdoor Corp.* 210 21,857

WMS Industries, Inc.* 690 21,093

Fossil, Inc.* 720 20,326

Corinthian Colleges, Inc.* 20,235

Netflix, Inc.* 640 19,763

Jack in the Box, Inc.* 930 19,623

Live Nation, Inc.* 1,200 19,524

Aaron Rents, Inc. 720 19,490

Arbitron, Inc. 430 19,217

J. Crew Group, Inc.* 670 19,142

Gaylord Entertainment Co.* 19,090

Regis Corp. 680 18,700

Collective Brands, Inc.* 1,010 18,493

Ryland Group, Inc. 670 17,768

Pool Corp. 760 17,731

Brunswick Corp. 1,380 17,650

Carter’s, Inc.* 890 17,560

Men’s Wearhouse, Inc. 820 17,417

Life Time Fitness, Inc.* 550 17,198

Vail Resorts, Inc.* 490 17,125

Under Armour, Inc.* 520 16,515

Gymboree Corp.* 450 15,975

Cheesecake Factory, Inc.* 15,483

Chico’s FAS, Inc.* 2,790 15,261

ArvinMeritor, Inc. 1,160 15,126

Callaway Golf Co. 1,050 14,773

1,180

130

760

570

1,490

460

370

120

170

290

350

380

1,790

520

170

930

770

910

1,349

650

1,059

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

RUSSELL 2000^® FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

Dana Holding Corp.*

1,560

$

7,550

Wendy’s/Arby’s Group, Inc. —

La-Z-Boy, Inc.

810

7,549

Class A

990

$

5,184

Domino’s Pizza, Inc.*

620

7,527

Marcus Corp.

320

5,146

Cabela’s, Inc. — Class A*

620

7,490

CKX, Inc.*

830

5,113

Texas Roadhouse, Inc.*

830

7,462

Talbots, Inc.

390

5,109

Modine Manufacturing Co.

510

7,385

Zumiez, Inc.*

310

5,109

Churchill Downs, Inc.

149

7,298

Maidenform Brands, Inc.*

350

5,078

National CineMedia, Inc.

660

7,293

M/I Homes, Inc.

220

5,012

Red Robin Gourmet Burgers, Inc.*

270

7,236

Volcom, Inc.*

290

5,011

RCN Corp.*

590

7,233

Visteon Corp.*

2,070

4,802

Pinnacle Entertainment, Inc.*

950

7,182

Ambassadors Group, Inc.

299

4,757

K-Swiss, Inc. — Class A

410

7,134

Overstock.com, Inc.*

240

4,754

Pacific Sunwear of California, Inc.*

1,040

6,999

Ruby Tuesday, Inc.*

820

4,748

True Religion Apparel, Inc.*

270

6,979

CROCS, Inc.*

1,320

4,726

Furniture Brands International, Inc.

660

6,943

Charter Communications, Inc. —

Steven Madden, Ltd.*

280

6,938

Class A*

6,450

4,708

Jackson Hewitt Tax Service, Inc.

450

6,903

Morgans Hotel Group Co.*

430

4,691

Superior Industries International,

HOT Topic, Inc.*

690

4,561

Inc.

360

6,898

DineEquity, Inc.

270

4,552

thinkorswim Group, Inc.*

820

6,831

Sealy Corp.

700

4,522

Champion Enterprises, Inc.*

1,230

6,826

Media General, Inc.

360

4,475

Finish Line, Inc. — Class A

669

6,683

Sauer, Inc.

180

4,444

Blockbuster, Inc. — Class A*

3,227

6,615

American Apparel, Inc.*

540

4,428

Valassis Communications, Inc.*

760

6,582

Blyth, Inc.

390

4,423

Fuel Systems Solutions, Inc.*

190

6,545

Hayes Lemmerz International, Inc.*

1,600

4,368

Lululemon Athletica, Inc.*

280

6,448

Fisher Communications, Inc.

110

4,334

Cinemark Holdings, Inc.

470

6,392

Cox Radio Inc. — Class A*

410

4,330

Borders Group, Inc.

960

6,298

Christopher & Banks Corp.

560

4,295

Peet’s Coffee & Tea, Inc.*

220

6,142

Speedway Motorsports, Inc.

220

4,286

Raser Technologies, Inc.*

710

6,035

Shuffle Master, Inc.*

840

4,276

Harte-Hanks, Inc.

580

6,015

Ulta Salon Cosmetics & Fragrance,

Monro Muffler Brake, Inc.

260

5,996

Inc.*

320

4,250

PetMed Express, Inc.*

380

5,966

California Pizza Kitchen, Inc.*

330

4,247

Bebe Stores, Inc.

610

5,960

Sinclair Broadcast Group, Inc. —

Winnebago Industries, Inc.

460

5,943

Class A

830

4,183

Hovnanian Enterprises, Inc. —

iRobot Corp.*

280

4,150

Class A*

730

5,833

PEP Boys-Manny Moe & Jack

670

4,141

Pier 1 Imports, Inc.*

1,410

5,823

Dolan Media Co.*

400

4,036

Universal Technical Institute, Inc.*

340

5,800

McClatchy Co. — Class A

900

3,960

Asbury Automotive Group, Inc.

500

5,760

G-III Apparel Group Ltd.*

210

3,929

GSI Commerce, Inc.*

370

5,728

American Axle & Manufacturing

Oxford Industries, Inc.

220

5,683

Holdings, Inc.

730

3,913

Ameristar Casinos, Inc.

400

5,676

Steak n Shake Co.*

450

3,906

RC2 Corp.*

280

5,600

Denny’s Corp.*

1,499

3,867

Movado Group, Inc.

250

5,587

Tween Brands, Inc.*

390

3,818

Universal Electronics, Inc.*

220

5,496

Core-Mark Holding Co., Inc.*

150

3,748

Leapfrog Enterprises, Inc.*

520

5,491

Citi Trends, Inc.*

230

3,747

Pre-Paid Legal Services, Inc.*

130

5,364

Beazer Homes USA, Inc.*

620

3,708

Drew Industries, Inc.*

310

5,304

Haverty Furniture Companies, Inc.

322

3,684

The Wet Seal, Inc. — Class A*

1,450

5,263

Weyco Group, Inc.

110

3,682

DG FastChannel, Inc.*

240

5,261

Mediacom Communications Corp.*

620

3,670

World Wrestling Entertainment,

Knology, Inc.*

450

3,631

Inc.

340

5,256

Cavco Industries, Inc.*

100

3,615

National Presto Industries, Inc.

70

5,215

Steinway Musical Instruments, Inc.*

127

3,597

Coldwater Creek, Inc.*

900

5,211

New York & Co., Inc.*

370

3,530

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

77

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

RUSSELL 2000^® FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

Big 5 Sporting Goods Corp.

340

$

3,509

Lodgian, Inc.*

260

$

2,028

Sonic Automotive, Inc.

410

3,469

Russ Berrie & Co., Inc.*

260

1,994

Unifi, Inc.*

710

3,436

Dover Downs Gaming &

Orbitz Worldwide, Inc.*

580

3,405

Entertainment, Inc.

255

1,984

Martha Stewart Omnimedia, Inc.*

400

3,404

Tuesday Morning Corp.*

480

1,982

Charlotte Russe Holding, Inc.*

330

3,382

Libbey, Inc.

230

1,957

Avatar Holdings Inc.*

100

3,300

hhgregg, Inc.*

200

1,950

Journal Communications, Inc. —

Build-A-Bear Workshop, Inc.*

260

1,893

Class A

670

3,270

Lumber Liquidators, Inc.*

150

1,884

BJ’s Restaurants, Inc.*

270

3,224

MarineMax, Inc.*

260

1,880

RHI Entertainment*

210

3,129

Retail Ventures, Inc.*

460

1,794

drugstore.com, Inc.*

1,320

3,102

Cumulus Media, Inc. — Class A*

420

1,789

CSS Industries, Inc.

120

3,089

Global Traffic Network, Inc.*

190

1,761

Midas, Inc.*

220

3,027

Learning Tree International, Inc.*

140

1,743

Shutterfly, Inc.*

310

2,979

Town Sports International Holdings,

America’s Car Mart, Inc.*

160

2,974

Inc.*

279

1,702

Gaiam, Inc.*

279

2,957

Princeton Review, Inc.*

210

1,680

Krispy Kreme Doughnuts, Inc.*

890

2,937

Quantum Fuel Systems

Idearc, Inc.

2,330

2,912

Technologies Worldwide, Inc.*

1,300

1,677

Skyline Corp.

110

2,907

AH Belo Corp. — Class A

320

1,651

AFC Enterprises, Inc.*

399

2,897

Nautilus, Inc.*

360

1,645

DSW, Inc.*

210

2,877

Spartan Motors, Inc.

510

1,622

Perry Ellis International, Inc.*

190

2,833

Palm Harbor Homes, Inc.*

160

1,586

Conn’s, Inc.*

150

2,806

Great Wolf Resorts, Inc.*

430

1,574

Landry’s Restaurants, Inc.

180

2,799

Stein Mart, Inc.

400

1,564

Luby’s, Inc.*

340

2,734

Dover Motorsports, Inc.

277

1,510

Global Sources Ltd.*

270

2,719

Rex Stores Corp.*

130

1,501

Stamps.com, Inc.*

230

2,684

Wonder Auto Technology, Inc.*

230

1,474

K12 Inc.*

100

2,650

Bluegreen Corp.*

200

1,382

Audiovox Corp. — Class A*

280

2,624

Syms Corp.*

100

1,351

Cherokee, Inc.

119

2,616

Playboy Enterprises, Inc. — Class B*

340

1,340

Stoneridge, Inc.*

230

2,587

Marine Products Corp.

160

1,328

O’Charleys, Inc.

290

2,537

Ruth’s Chris Steak House*

320

1,258

Entravision Communications

Cache, Inc.*

180

1,237

Corp. — Class A*

940

2,529

Fleetwood Enterprises, Inc.*

1,210

1,234

Hooker Furniture Corp.

140

2,485

Fuqi International, Inc.*

150

1,223

Lee Enterprises, Inc.

709

2,481

Riviera Holdings Corp.*

160

1,176

1-800-FLOWERS.com, Inc.*

410

2,468

Gray Television, Inc.

670

1,152

Systemax, Inc.

170

2,390

Rick’s Cabaret International, Inc.*

100

982

Entercom Communications Corp.

473

2,374

Primedia, Inc.

400

972

Casual Male Retail Group, Inc.*

590

2,319

Lincoln Educational Services Corp.*

70

926

Amerigon, Inc.*

350

2,303

Crown Media Holdings, Inc. —

Shoe Carnival, Inc.*

140

2,293

Class A*

170

855

Isle of Capri Casinos, Inc.*

250

2,255

Six Flags, Inc.*

1,150

794

Citadel Broadcasting Corp.*

2,860

2,231

Einstein Noah Restaurant Group,

Smith & Wesson Holding Corp.*

590

2,207

Inc.*

70

706

Outdoor Channel Holdings, Inc.*

250

2,200

Value Line, Inc.

20

670

RH Donnelley Corp.*

1,090

2,169

Westwood One, Inc.*

1,120

616

Lin TV Corp. — Class A*

420

2,167

GateHouse Media, Inc.

500

510

Brookfield Homes Corp.

150

2,154

Aristotle Corp.*

19

151

Dorman Products, Inc.*

170

2,130

Total Consumer Discretionary

2,058,540

Kenneth Cole Productions, Inc. —

ENERGY 3.0%

Class A

140

2,058

EXCO Resources, Inc.*

2,360

38,515

Monarch Casino & Resort, Inc.*

180

2,050

Comstock Resources, Inc.*

720

36,036

Circuit City Stores, Inc.

2,670

2,029

78

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

RUSSELL 2000^® FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

Penn Virginia Corp.

660

$

35,270

Clayton Williams Energy, Inc.*

90

$

6,348

Berry Petroleum Co. — Class A

773

29,938

Parallel Petroleum Corp.*

650

6,123

Concho Resources, Inc.*

870

24,021

Gran Tierra Energy, Inc.*

1,640

6,084

Arena Resources, Inc.*

600

23,310

Callon Petroleum Co.*

330

5,950

McMoRan Exploration Co.*

950

22,458

Energy XXI Bermuda Ltd.

1,890

5,746

Grey Wolf, Inc.*

2,830

22,017

ENGlobal Corp.*

430

5,706

Dril-Quip, Inc.*

490

21,261

Harvest Natural Resources, Inc.*

560

5,667

Stone Energy Corp.*

500

21,165

Dawson Geophysical Co.*

120

5,603

ION Geophysical Corp.*

1,340

19,015

Allis-Chalmers Energy, Inc.*

440

5,566

Atlas America, Inc.

550

18,760

TXCO Resources, Inc.*

550

5,522

Bill Barrett Corp.*

580

18,624

VeraSun Energy Corp.*

1,620

5,071

Swift Energy Co.*

480

18,571

Clean Energy Fuels Corp.*

340

4,811

Lufkin Industries, Inc.

230

18,250

FX Energy, Inc.*

639

4,754

Nordic American Tanker Shipping

540

17,312

Western Refining, Inc.

470

4,752

CARBO Ceramics, Inc.

320

16,515

Energy Partners Ltd.*

500

4,335

BPZ Resources, Inc.*

950

16,340

Brigham Exploration Co.*

392

4,308

Willbros Group, Inc.*

610

16,165

Bronco Drilling Co., Inc.*

420

4,292

GulfMark Offshore, Inc.*

360

16,157

Venoco, Inc.*

320

4,160

Crosstex Energy, Inc.

640

15,981

Gulfport Energy Corp.*

410

4,120

Goodrich Petroleum Corp.*

361

15,736

Rex Energy Corp.*

260

4,098

Carrizo Oil & Gas, Inc.*

430

15,596

Rentech, Inc.*

2,620

3,485

Complete Production Services, Inc.*

760

15,299

Panhandle Oil and Gas, Inc. —

Rosetta Resources, Inc.*

810

14,872

Class A

120

3,436

Ship Finance International Ltd.

670

14,445

Trico Marine Services, Inc.*

200

3,416

Hornbeck Offshore Services, Inc.*

370

14,289

Natural Gas Services Group, Inc.*

190

3,319

Parker Drilling Co.*

1,780

14,276

CVR Energy, Inc.*

360

3,067

Delta Petroleum Corp.*

980

13,308

Northern Oil And Gas, Inc.*

340

2,764

Bristow Group, Inc.*

380

12,859

Gasco Energy, Inc.*

1,480

2,694

NATCO Group, Inc.*

320

12,858

BMB Munai, Inc.*

630

2,614

International Coal Group, Inc.*

2,010

12,542

Toreador Resources Corp.*

270

2,427

GMX Resources, Inc.*

260

12,428

Endeavour International Corp.*

1,800

2,376

Contango Oil & Gas Co.*

210

11,336

Westmoreland Coal Co.*

150

2,370

Petroquest Energy, Inc.*

690

10,591

OYO Geospace Corp.*

60

2,357

Pioneer Drilling Co.*

790

10,507

Union Drilling, Inc.*

220

2,330

Newpark Resources, Inc.*

1,420

10,366

National Coal Corp.*

440

2,301

World Fuel Services Corp.

450

10,363

Alon USA Energy, Inc.

170

2,292

Petroleum Development Corp.*

230

10,205

Meridian Resource Corp.*

1,230

2,263

USEC, Inc.*

1,760

9,522

Tri-Valley Corp.*

350

2,219

Warren Resources, Inc.*

920

9,182

RAM Energy Resources, Inc.*

740

2,139

James River Coal Co.*

400

8,796

Approach Resources, Inc.*

140

2,024

Oilsands Quest, Inc.*

2,770

8,282

Bolt Technology Corp.*

139

2,011

General Maritime Corp.

420

8,182

Delek US Holdings, Inc.

210

1,947

PHI, Inc.*

220

8,125

Double Eagle Petroleum Co.*

130

1,856

Matrix Service Co.*

410

7,831

Cheniere Energy, Inc.*

770

1,732

ATP Oil & Gas Corp.*

439

7,819

Cano Petroleum, Inc.*

750

1,732

Basic Energy Services, Inc.*

350

7,455

Abraxas Petroleum Corp.*

660

1,723

Golar LNG Ltd.

560

7,437

APCO Argentina, Inc.

60

1,699

T-3 Energy Services, Inc. —

Sulphco, Inc.*

840

1,688

Class A*

200

7,424

GeoMet, Inc.*

290

1,578

Cal Dive International, Inc.*

700

7,420

Geokinetics, Inc.*

80

1,520

Knightsbridge Tankers Ltd.

270

7,147

Houston American Energy Corp.

240

1,517

Superior Well Services, Inc.*

260

6,581

American Oil & Gas, Inc.*

580

1,514

Gulf Island Fabrication, Inc.

190

6,549

Mitcham Industries, Inc.*

150

1,513

RPC, Inc.

460

6,468

GeoGlobal Resources, Inc.*

600

1,512

Vaalco Energy, Inc.*

930

6,361

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

79

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

RUSSELL 2000^® FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

Aventine Renewable Energy

Spartech Corp.

480

$

4,752

Holdings, Inc.*

460

$

1,454

Schweitzer-Mauduit International,

Uranium Resources, Inc.*

780

1,318

Inc.

250

4,747

Evergreen Energy Inc.*

1,340

1,260

Neenah Paper, Inc.

230

4,554

Quest Resource Corp.*

440

1,170

Quaker Chemical Corp.

160

4,554

Georesources, Inc.*

100

1,146

American Vanguard Corp.

300

4,524

GreenHunter Energy, Inc.*

70

998

A.M. Castle & Co.

260

4,493

Pacific Ethanol, Inc.*

700

973

Innospec, Inc.

370

4,462

PrimeEnergy Corp.*

10

740

General Moly, Inc.*

990

4,306

Total Energy

1,013,648

Innophos Holdings, Inc.

170

4,145

MATERIALS 1.9%

Olympic Steel, Inc.

140

4,129

Hercules, Inc.

1,790

35,424

Allied Nevada Gold Corp.*

710

4,061

Compass Minerals International,

Flotek Industries, Inc.*

360

3,960

Inc.

510

26,719

LSB Industries, Inc.*

270

3,740

Rock-Tenn Co. — Class A

600

23,988

Stillwater Mining Co.*

620

3,602

Olin Corp.

1,180

22,892

GenTek, Inc.*

140

3,599

Sensient Technologies Corp.

760

21,379

ShengdaTech, Inc.*

480

3,360

Solutia, Inc.*

1,490

20,860

AbitibiBowater, Inc.*

840

3,251

Silgan Holdings, Inc.

400

20,436

Horsehead Holding Corp.*

550

3,245

Minerals Technologies, Inc.

300

17,808

Penford Corp.

180

3,184

Texas Industries, Inc.

427

17,447

Landec Corp.*

370

3,030

W.R. Grace & Co.*

1,140

17,237

U S Concrete, Inc.*

630

2,816

Rockwood Holdings, Inc.*

660

16,936

Universal Stainless & Alloy*

110

2,811

Royal Gold, Inc.

460

16,542

ICO, Inc.*

440

2,468

H.B. Fuller Co.

770

16,070

AEP Industries, Inc.*

90

1,800

Worthington Industries, Inc.

1,020

15,239

KapStone Paper and Packaging

Louisiana-Pacific Corp.

1,630

15,159

Corp.*

280

1,778

Ferro Corp.

690

13,869

Mercer International, Inc.*

480

1,757

Arch Chemicals, Inc.

390

13,767

Apex Silver Mines Ltd.*

931

1,601

Coeur d’Alene Mines Corp.*

8,700

13,311

Bway Holding Co.*

120

1,408

Calgon Carbon Corp.*

650

13,234

General Steel Holdings, Inc.*

170

1,214

Amcol International Corp.

410

12,817

United States Lime & Minerals, Inc.*

30

1,155

Deltic Timber Corp.

197

12,537

NL Industries, Inc.

110

1,130

Koppers Holdings, Inc.

330

12,345

China Precision Steel, Inc.*

270

899

NewMarket Corp.

210

11,038

Boise, Inc.*

560

874

OM Group, Inc.*

480

10,800

Verso Paper Corp.

220

581

Kaiser Aluminum Corp.

250

10,737

Sutor Technology Group Ltd.*

120

395

Glatfelter

710

9,613

Total Materials

654,896

PolyOne Corp.*

1,470

9,481

UTILITIES 1.8%

Hecla Mining Co.*

2,010

9,407

ITC Holdings Corp.

780

40,381

Haynes International, Inc.*

190

8,898

Westar Energy, Inc.

1,660

38,246

Headwaters, Inc.*

660

8,811

Piedmont Natural Gas Co.

1,160

37,074

A. Schulman, Inc.

430

8,505

Nicor, Inc.

710

31,488

Balchem Corp.

290

7,734

WGL Holdings, Inc.

780

25,311

Zoltek Companies, Inc.*

430

7,357

Cleco Corp.

950

23,987

Wausau Paper Corp.

700

7,091

New Jersey Resources Corp.

660

23,687

RTI International Metals, Inc.*

360

7,042

Portland General Electric Co.

990

23,423

Westlake Chemical Corp.

300

6,309

Northwest Natural Gas Co.

420

21,840

Brush Engineered Materials, Inc.*

320

5,942

IDACORP, Inc.

710

20,654

Zep, Inc.

330

5,821

Southwest Gas Corp.

680

20,577

Graphic Packaging Holding Co.*

2,280

5,700

Black Hills Corp.

610

18,953

Myers Industries, Inc.

450

5,674

Allete, Inc.

410

18,245

Stepan Co.

100

5,457

Avista Corp.

840

18,236

Buckeye Technologies, Inc.*

620

5,078

Otter Tail Power Co.

560

17,209

80

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

RUSSELL 2000^® FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

South Jersey Industries, Inc.

470

$

16,779

J&J Snack Foods Corp.

220

$

7,460

Laclede Group, Inc.

340

16,487

Pantry, Inc.*

350

7,416

Unisource Energy Corp.

540

15,763

Diamond Foods, Inc.

250

7,007

NorthWestern Corp.

620

15,581

Smart Balance, Inc.*

990

6,494

El Paso Electric Co.*

710

14,910

American Oriental Bioengineering,

PNM Resources, Inc.

1,370

14,029

Inc.*

980

6,360

UIL Holding Corp.

400

13,732

Boston Beer Co., Inc. — Class A*

130

6,174

Mge Energy, Inc.

350

12,442

Weis Markets, Inc.

170

6,122

California Water Service Group

310

11,935

Central Garden and Pet Co. —

Empire District Electric Co.

530

11,315

Class A*

1,020

6,069

CH Energy Group, Inc.

250

10,892

Great Atlantic & Pacific Tea

American States Water Co.

270

10,395

Company, Inc*

560

6,059

Ormat Technologies, Inc.

280

10,172

Cal-Maine Foods, Inc.

200

5,488

EnergySouth, Inc.

120

7,372

Alliance One International, Inc.*

1,400

5,320

SJW Corp.

210

6,294

Prestige Brands Holdings, Inc. —

Southwest Water Co.

390

4,973

Class A*

530

4,706

Consolidated Water Co., Inc.

230

3,915

Ingles Markets, Inc. — Class A

200

4,566

Connecticut Water Service, Inc.

130

3,764

USANA Health Sciences, Inc.*

110

4,509

Central Vermont Public Service

Pricesmart, Inc.

230

3,850

Corp.

160

3,750

Star Scientific, Inc.*

1,040

3,702

Middlesex Water Co.

210

3,669

Omega Protein Corp.*

290

3,410

Chesapeake Utilities Corp.

110

3,653

Synutra International, Inc.*

160

3,221

Cadiz, Inc.*

190

3,623

Zhongpin, Inc.*

290

3,083

Synthesis Energy Systems, Inc.*

400

1,940

Inter Parfums, Inc.

220

2,983

US Geothermal, Inc.*

980

1,744

Arden Group, Inc.

20

2,912

Total Utilities

598,440

Alico, Inc.

60

2,846

CONSUMER STAPLES 1.8%

Farmer Brothers Co.

110

2,736

Ralcorp Holdings, Inc.*

890

59,995

Coca-Cola Bottling Co.

Longs Drug Stores Corp.

565

42,737

Consolidated

59

2,576

Flowers Foods, Inc.

1,220

35,819

Imperial Sugar Co., Inc.

190

2,573

Casey’s General Stores, Inc.

799

24,106

AgFeed Industries, Inc.*

310

2,449

Ruddick Corp.

670

21,741

Village Super Market

50

2,383

Chattem, Inc.*

270

21,109

B&G Foods, Inc.

320

2,288

Universal Corp.

400

19,636

Calavo Growers, Inc.

160

1,994

Hain Celestial Group, Inc.*

640

17,619

Maui Land & Pineapple Co., Inc.*

70

1,924

United Natural Foods, Inc.*

680

16,993

Griffin Land & Nurseries, Inc.

50

1,854

Fresh Del Monte Produce, Inc.*

660

14,652

Susser Holdings Corp.*

120

1,807

Nu Skin Enterprises, Inc.

900

14,598

Pilgrim’s Pride Corp.

710

1,768

TreeHouse Foods, Inc.*

490

14,553

National Beverage Corp.*

170

1,508

Darling International, Inc.*

1,290

14,332

China Sky One Medical, Inc.*

120

1,458

Lancaster Colony Corp.

320

12,051

American Dairy, Inc.*

110

1,114

Winn-Dixie Stores, Inc.*

850

11,815

Schiff Nutrition International, Inc.*

150

1,025

Sanderson Farms, Inc.

320

11,757

Reddy Ice Holdings, Inc.

279

1,018

Tootsie Roll Industries, Inc.

380

10,986

Mannatech, Inc.

250

1,000

Chiquita Brands International, Inc.*

680

10,751

Lifeway Foods, Inc.*

80

936

Green Mountain Coffee Roasters,

Spectrum Brands, Inc.*

630

876

Inc.*

270

10,622

HQ Sustainable Maritime Industries,

Andersons, Inc.

290

10,214

Inc.*

110

557

Lance, Inc.

430

9,757

Total Consumer Staples

592,957

WD-40 Co.

260

9,342

TELECOMMUNICATION SERVICES 0.5%

Vector Group Ltd.

520

9,183

tw telecom Inc.*

2,320

24,105

Spartan Stores, Inc.

350

8,708

Fairpoint Communications, Inc.

1,628

14,115

Nash Finch Co.

200

8,624

Premiere Global Services, Inc.*

980

13,779

Elizabeth Arden, Inc.*

390

7,656

Syniverse Holdings, Inc.*

810

13,454

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

81

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

RUSSELL 2000^® FUND

MARKET

FACE

MARKET

SHARES

VALUE

AMOUNT

VALUE

NTELOS Holdings Corp.

470

$

12,638

REPURCHASE AGREEMENTS 73.5%

Cincinnati Bell, Inc.*

3,840

11,865

Repurchase Agreements (Note 5)

Iowa Telecommunications

Morgan Stanley

Services, Inc.

510

9,527

issued 09/30/08 at 0.05%

Alaska Communications Systems

due 10/01/08

$10,129,048

$10,129,048

Group, Inc.

680

8,316

Mizuho Financial Group, Inc.

Shenandoah Telecommunications

issued 09/30/08 at 0.26%

Co.

370

8,166

due 10/01/08

8,390,137

8,390,137

Centennial Communications

Morgan Stanley

Corp.*

1,060

6,614

issued 09/30/08 at 0.10%

General Communication, Inc. —

due 10/01/08

5,939,920

5,939,920

Class A*

710

6,575

Credit Suisse Group

Global Crossing*

410

6,216

issued 09/30/08 at 0.25%

iPCS, Inc. — Class A*

270

6,013

due 10/01/08††

409,028

409,028

Cogent Communications Group,

Total Repurchase Agreements

Inc.*

750

5,790

(Cost $24,868,133)

24,868,133

Consolidated Communications

Total Investments 122.0%

Holdings, Inc.

370

5,580

(Cost $41,707,109)

$41,264,778

Cbeyond, Inc.*

380

5,468

PAETEC Holding Corp.*

1,950

4,192

Liabilities in Excess of

Atlantic Tele-Network, Inc.

149

4,172

Other Assets – (22.0)%

$ (7,431,267)

USA Mobility, Inc.*

370

4,070

Net Assets – 100.0%

$33,833,511

FiberTower Corp.*

1,900

2,622

ICO Global Communications

UNREALIZED

Holdings Ltd.*

1,640

1,788

CONTRACTS

G

AIN

(L

OSS

)

Ibasis, Inc.

500

1,745

FUTURES CONTRACTS PURCHASED

Hungarian Telephone & Cable

December 2008 Russell 2000 Index

Corp.*

80

1,592

Mini Futures Contracts

Virgin Mobile USA, Inc. — Class A*

480

1,411

(Aggregate Market Value

Globalstar, Inc.*

660

1,122

of Contracts $11,522,420)

232

$

(417,909)

TerreStar Corp.*

920

920

Vonage Holdings Corp.*

810

818

UNITS

IDT Corp. — Class B*

850

629

EQUITY INDEX SWAP AGREEMENT

Total Telecommunication Services

183,302

Credit Suisse Capital, LLC

Total Common Stocks

December 2008 Russell 2000 Index

(Cost $16,835,097)

16,392,766

Swap, Terminating 12/29/08**

SECURITIES LENDING COLLATERAL 0.0%

(Notional Market Value

Mount Vernon Securities

$9,310,647)

2,957

$

—

Lending Trust Prime

Portfolio (Note 9)

3,879

3,879

Total Securities Lending Collateral

(Cost $3,879)

3,879

* Non-Income Producing Security.

** Total Return based on Russell 2000 Index +/- financing at a variable rate.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

†† All or a portion of this security is pledged as equity index swap collateral at September 30, 2008.

82

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

INVERSE RUSSELL 2000^® STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 96.5%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$15,898,884

$15,898,884

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

13,169,435

13,169,435

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

9,323,494

9,323,494

Credit Suisse Group

issued 09/30/08 at 0.25%

due 10/01/08†

1,552,988

1,552,988

Total Repurchase Agreements

(Cost $39,944,801)

39,944,801

Total Long Securities 96.5%

(Cost $39,944,801)

$39,944,801

SHARES

COMMON STOCKS SOLD SHORT 0.0%

INFORMATION TECHNOLOGY 0.0%

DMRC Corp.*

126

(1,584)

Total Information Technology

(1,584)

Total Common Stocks Sold Short

(Proceeds $1,412)

(1,584)

Other Assets in Excess

of Liabilities – 3.5%

$

1,443,518

Net Assets – 100.0%

$41,386,735

UNREALIZED

CONTRACTS

GAIN

FUTURES CONTRACTS SOLD SHORT

December 2008 Russell 2000 Index

Mini Futures Contracts

(Aggregate Market Value

of Contracts $22,976,660)

337

$

583,219

UNITS

EQUITY INDEX SWAP AGREEMENT

SOLD SHORT

Credit Suisse Capital, LLC

December 2008 Russell 2000 Index

Swap, Terminating 12/29/08**

(Notional Market Value

$18,596,800)

27,365

$

—

* Non-Income Producing Security.

** Total Return based on Russell 2000 Index +/- financing at a variable rate.

† All or a portion of this security is pledged as equity index swap collateral at September 30, 2008.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

83

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

U.S. TREASURY OBLIGATIONS 95.6%

U.S. Treasury Bond

4.50% due 05/15/38

$47,000,000

$48,432,031

Total U.S. Treasury Obligations

(Cost $46,999,667)

48,432,031

REPURCHASE AGREEMENTS 4.0%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

844,841

844,841

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

699,802

699,802

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

495,435

495,435

Total Repurchase Agreements

(Cost $2,040,078)

2,040,078

Total Investments 99.6%

(Cost $49,039,745)

$50,472,109

Other Assets in Excess

of Liabilities – 0.4%

$

184,122

Net Assets – 100.0%

$50,656,231

UNREALIZED

CONTRACTS

LOSS

FUTURES CONTRACTS PURCHASED

December 2008 U.S. Treasury Bond

Futures Contracts

(Aggregate Market Value

of Contracts $19,541,609)

167

$

(14,318)

84

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FACE

MARKET

UNREALIZED

AMOUNT

VALUE

CONTRACTS

GAIN

FEDERAL AGENCY DISCOUNT NOTES 77.4%

FUTURES CONTRACTS SOLD SHORT

Fannie Mae*

December 2008 U.S. Treasury Bond

1.98% due 12/04/08

$100,000,000

$

99,648,000

Futures Contracts

2.70% due 12/01/08

50,000,000

49,771,250

(Aggregate Market Value of

Federal Home Loan Bank*

Contracts $719,880,125)

6,152

$

10,541,695

3.00% due 01/05/09

100,000,000

99,200,000

2.32% due 10/01/08

25,000,000

25,000,000

Freddie Mac*

2.45% due 12/16/08

100,000,000

99,482,777

Total Federal Agency Discount Notes

(Cost $373,102,027)

373,102,027

CONTRACTS

OPTIONS PURCHASED 0.0%

Call Options on:

December 2008 U.S. Treasury

Bond Index Futures Contracts

Expiring November 2008

with strike price of 159†

3,168

—

Total Options Purchased

(Cost $55,852)

—

FACE

AMOUNT

REPURCHASE AGREEMENTS 16.8%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$33,632,884

33,632,884

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

27,858,941

27,858,941

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

19,723,144

19,723,144

Total Repurchase Agreements

(Cost $81,214,969)

81,214,969

Total Investments 94.2%

(Cost $454,372,848)

$454,316,996

Other Assets in Excess

of Liabilities – 5.8%

$

27,931,392

Net Assets – 100.0%

$482,248,388

* The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the

U.S. Government.

† Security is fair valued.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

85

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

HIGH YIELD STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 110.5%

Repurchase Agreements (Note 5)

Credit Suisse Group

issued 09/30/08 at 0.25%

due 10/01/08†

$10,810,046

$10,810,046

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

4,622,618

4,622,618

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

3,829,027

3,829,027

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

2,710,816

2,710,816

Total Repurchase Agreements

(Cost $21,972,507)

21,972,507

Total Investments 110.5%

(Cost $21,972,507)

$21,972,507

Liabilities in Excess of

Other Assets – (10.5)%

$

(2,087,240)

Net Assets – 100.0%

$19,885,267

UNREALIZED

CONTRACTS

GAIN (LOSS)

FUTURES CONTRACTS PURCHASED

December 2008 U.S. 5 Year

Treasury Note Futures Contracts

(Aggregate Market Value

of Contracts $13,586,977)

121

$

34,084

NOTIONAL

PRINCIPAL

CREDIT DEFAULT SWAP AGREEMENT

PROTECTION SOLD

Goldman Sachs International

CDX North American

High Yield Index Swap

Agreement, Series 10

Protection Premium Rate

5.00% Terminating 06/20/13

$20,000,000

$

(464,871)

† All or a portion of this security is pledged as credit default swap collateral at September 30, 2008.

86

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

INVERSE HIGH YIELD STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 87.2%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$6,560,117

$

6,560,117

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

5,433,906

5,433,906

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

3,847,013

3,847,013

Total Repurchase Agreements

(Cost $15,841,036)

15,841,036

Total Investments 87.2%

(Cost $15,841,036)

$15,841,036

Other Assets in Excess

of Liabilities – 12.8%

$

2,318,232

Net Assets – 100.0%

$18,159,268

UNREALIZED

CONTRACTS

GAIN

FUTURES CONTRACTS SOLD SHORT

December 2008 U.S. 5 Year

Treasury Note Futures Contracts

(Aggregate Market Value

of Contracts $11,902,641)

106

$

47,181

NOTIONAL

PRINCIPAL

CREDIT DEFAULT SWAP AGREEMENT

PROTECTION PURCHASED

Goldman Sachs International

CDX North American

High Yield Index Swap

Agreement, Series 10

Protection Premium Rate

5.00% Terminating 06/20/13

$17,500,000

$

599,354

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

87

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

EUROPE 1.25x STRATEGY FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 54.9%

MATERIALS 3.3%

Rio Tinto PLC — SP ADR

590

$

147,205

FINANCIALS 15.6%

BHP Billiton Ltd. — SP ADR

2,320

120,616

HSBC Holdings PLC —

Anglo American PLC —

SP ADR

5,650

$

456,690

SP ADR

6,160

103,057

Banco Santander Central

ArcelorMittal

1,810

89,378

Hispano SA — SP ADR

17,671

265,419

Syngenta AG — SP ADR

840

35,549

Banco Bilbao Vizcaya

Total Materials

495,805

Argentaria SA — SP ADR†

12,931

209,094

CONSUMER STAPLES 3.2%

AXA — SP ADR

6,240

203,798

Unilever NV

7,360

207,257

Credit Suisse Group AG —

Diageo PLC — SP ADR

2,880

198,317

SP ADR

3,990

192,637

British American Tobacco

Allianz SE — SP ADR

13,161

180,437

PLC — SP ADR

1,320

81,840

Barclays PLC — SP ADR

6,830

168,701

Deutsche Bank AG — SP ADR

2,310

168,145

Total Consumer Staples

487,414

UBS AG — SP ADR*

9,401

164,894

INFORMATION TECHNOLOGY 2.6%

ING Groep NV — SP ADR

6,010

128,614

Nokia Oyj — SP ADR

9,471

176,634

Lloyds TSB Group PLC —

SAP AG — SP ADR

2,880

153,878

SP ADR

7,010

117,277

Telefonaktiebolaget LM

Allied Irish Banks PLC —

Ericsson — SP ADR

7,050

66,482

SP ADR

3,230

53,101

Total Information Technology

396,994

Willis Group Holdings Ltd.

1,510

48,713

INDUSTRIALS 2.1%

Total Financials

2,357,520

Siemens AG — SP ADR

2,100

197,169

HEALTH CARE 10.1%

Koninklijke Philips

Novartis AG — SP ADR

8,451

446,551

Electronics NV — SP ADR

2,730

74,393

GlaxoSmithKline PLC —

Ryanair Holdings PLC —

SP ADR

9,481

412,044

SP ADR*

1,680

37,682

Sanofi-Aventis — SP ADR

8,481

278,771

Total Industrials

309,244

AstraZeneca PLC — SP ADR

4,600

201,848

CONSUMER DISCRETIONARY 1.2%

Novo Nordisk A/S — SP ADR

1,520

77,824

Daimler AG — SP ADR†

2,730

137,865

Teva Pharmaceutical

Carnival PLC — SP ADR

1,470

45,570

Industries Ltd. — SP ADR

1,120

51,285

Alcon, Inc. — SP ADR

310

50,068

Total Consumer Discretionary

183,435

Total Health Care

1,518,391

UTILITIES 0.3%

Veolia Environnement —

TELECOMMUNICATION SERVICES 8.4%

SP ADR

990

40,867

Telefonica SA — SP ADR

4,810

343,867

Vodafone Group PLC —

Total Utilities

40,867

SP ADR

14,301

316,052

Total Common Stocks

France Telecom SA — SP ADR

9,781

273,966

(Cost $7,844,335)

8,271,253

Deutsche Telekom AG —

SECURITIES LENDING COLLATERAL 2.0%

SP ADR

11,241

171,200

Mount Vernon Securities Lending

BT Group PLC — SP ADR†

5,650

163,907

Trust Prime Portfolio (Note 9)

305,120

305,120

Total Telecommunication Services

1,268,992

Total Securities Lending Collateral

ENERGY 8.1%

(Cost $305,120)

305,120

BP PLC — SP ADR

7,560

379,285

Total SA — SP ADR

5,710

346,483

Royal Dutch Shell PLC —

SP ADR

4,610

272,036

Eni SpA — SP ADR

3,420

181,089

Compagnie Generale de

Geophysique SA, Inc. —

SP ADR*

1,060

33,698

Total Energy

1,212,591

88

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

EUROPE 1.25x STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 39.3%

Country Diversification

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

Sweden

due 10/01/08

$2,455,649

$

2,455,649

2%

Greece

Mizuho Financial Group, Inc.

Finland

1%

Other

Ireland

2%

issued 09/30/08 at 0.26%

2%

3%

due 10/01/08

2,034,074

2,034,074

Italy

3%

Morgan Stanley

Luxembourg

Great

issued 09/30/08 at 0.10%

5%

Britain

due 10/01/08

1,440,053

1,440,053

29%

Total Repurchase Agreements

Spain

7%

(Cost $5,929,776)

5,929,776

Total Investments 96.2%

(Cost $14,079,231)

$14,506,149

Germany

Other Assets in Excess

9%

of Liabilities – 3.8%

$

577,499

Net Assets – 100.0%

$15,083,648

France

Netherlands

16%

UNREALIZED

9%

Switzerland

CONTRACTS

LOSS

12%

The pie chart above reflects percentages of

CURRENCY FUTURES

the market value of Common Stocks.

CONTRACTS PURCHASED

December 2008 EURO Currency

Futures Contracts

(Aggregate Market Value

of Contracts $10,952,300)

62

$

(103,823)

FUTURES CONTRACTS PURCHASED

December 2008 Dow Jones EURO

STOXX 50 Index Futures Contracts

(Aggregate Market Value

of Contracts $10,839,853)

248

$

(4,764)

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

ADR — American Depository Receipt.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

89

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

JAPAN 2x STRATEGY FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 15.2%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$177,445

$

177,445

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

146,982

146,982

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

104,058

104,058

Total Repurchase Agreements

(Cost $428,485)

428,485

Total Investments 15.2%

(Cost $428,485)

$

428,485

Other Assets in Excess

of Liabilities – 84.8%

$

2,381,678

Net Assets – 100.0%

$

2,810,163

UNREALIZED

CONTRACTS

GAIN (LOSS)

CURRENCY FUTURES

CONTRACTS PURCHASED

December 2008 Japanese Yen

Currency Futures Contracts

(Aggregate Market Value

of Contracts $5,461,625)

46

$

88,695

FUTURES CONTRACTS PURCHASED

December 2008 Nikkei-225 Stock

Average Index Futures Contracts

(Aggregate Market Value

of Contracts $5,536,125)

95

$

(210,618)

90

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

SMALL-CAP VALUE FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 100.0%

Umpqua Holding Corp.

15,694

$

230,859

Lexington Realty Trust

12,680

218,350

CONSUMER DISCRETIONARY 31.8%

Susquehanna Bancshares, Inc.

11,078

216,243

Finish Line, Inc. — Class A

155,436

$

1,552,807

BioMed Realty Trust, Inc.

8,107

214,430

M/I Homes, Inc.†

29,105

663,012

Parkway Properties, Inc.

5,581

211,297

La-Z-Boy, Inc.

64,071

597,142

Flagstar Bancorp, Inc.

69,267

206,416

Haverty Furniture

Medical Properties Trust Inc.†

18,015

204,470

Companies, Inc.

44,509

509,183

First Financial Bancorp

13,786

201,276

Jo-Ann Stores, Inc.*

23,080

484,218

Mid-America Apartment

Stein Mart, Inc.†

112,671

440,544

Communities, Inc.

3,966

194,889

Bassett Furniture Industries, Inc.

49,968

427,226

First Commonwealth

Standard Motor Products, Inc.

60,388

375,613

Financial Corp.

14,264

192,136

Fred’s, Inc.

25,502

362,638

Old National Bancorp

9,544

191,071

Group 1 Automotive, Inc.

15,335

333,230

Home Properties, Inc.

3,291

190,713

National Presto Industries, Inc.

4,223

314,613

Pennsylvania Real Estate

Oxford Industries, Inc.

11,616

300,041

Investment Trust

9,634

181,601

Tuesday Morning Corp.*

72,007

297,389

Independent Bank Corp.†

28,573

176,867

Zale Corp.*

11,358

283,950

Community Bank System, Inc.

6,925

174,164

Brunswick Corp.

21,027

268,935

Corus Bankshares, Inc.†

42,577

172,437

Cato Corp. — Class A

14,810

259,915

Presidential Life Corp.†

10,464

165,227

Superior Industries

Sterling Bancorp†

10,668

154,259

International, Inc.†

13,523

259,101

Urstadt Biddle Properties, Inc.

8,160

153,000

Arctic Cat, Inc.

27,594

252,485

National Retail Properties, Inc.

6,328

151,556

Nautilus, Inc.*

49,922

228,144

Senior Housing Properties Trust

6,223

148,294

OfficeMax Inc.

23,886

212,347

Sovran Self Storage, Inc.

3,282

146,673

Brown Shoe Co., Inc.

12,482

204,455

Entertainment Properties Trust

2,491

136,307

Ruby Tuesday, Inc.*

34,100

197,439

LTC Properties, Inc.

4,619

135,429

PEP Boys-Manny Moe & Jack

31,631

195,480

Selective Insurance Group, Inc.

5,778

132,432

Live Nation, Inc.*

11,918

193,906

Brookline Bancorp, Inc.

9,651

123,436

Lithia Motors, Inc. — Class A

36,486

157,255

Sterling Savings Bank

8,385

121,582

Sonic Automotive, Inc.†

18,129

153,371

Irwin Financial Corp.

30,482

120,404

O’Charleys, Inc.

16,751

146,571

National Penn Bancshares, Inc.

8,226

120,100

Landry’s Restaurants, Inc.

8,744

135,969

Inland Real Estate Corp.†

7,639

119,856

MarineMax, Inc.*†

16,727

120,936

Whitney Holding Corp.

4,924

119,407

Ethan Allen Interiors, Inc.

3,906

109,446

BankAtlantic Bancorp, Inc. —

Audiovox Corp. — Class A*

9,269

86,851

Class A

14,202

116,456

Libbey, Inc.

9,970

84,845

Kite Realty Group Trust

10,298

113,278

Steak n Shake Co.*

9,198

79,839

Dime Community Bancshares

7,199

109,569

Big 5 Sporting Goods Corp.

7,322

75,563

Bank Mutual Corp.

9,115

103,455

Monaco Coach Corp.

38,113

74,320

TrustCo Bank Corp.

8,294

97,123

Cabela’s, Inc. — Class A*

5,030

60,762

Financial Federal Corp.

4,200

96,264

CKE Restaurants, Inc.

5,053

53,562

Provident Bankshares Corp.†

9,723

94,410

CPI Corp.

4,153

44,645

DiamondRock Hospitality Co.

10,025

91,227

Total Consumer Discretionary

10,597,748

United Fire & Casualty Co.

3,118

89,144

FINANCIALS 27.9%

South Financial Group, Inc.

12,142

89,001

Stewart Information

Hanmi Financial Corp.

17,489

88,319

Services Corp.

19,195

571,051

United Bankshares, Inc.

2,322

81,270

First Bancorp Puerto Rico†

48,218

533,291

PS Business Parks, Inc.

1,299

74,822

LandAmerica Financial

First Midwest Bancorp, Inc.

2,128

51,583

Group, Inc.

16,635

403,399

FirstFed Financial Corp.*†

4,570

35,829

SWS Group, Inc.

18,729

377,577

Guaranty Financial Group, Inc.*

7,972

31,489

Colonial Properties Trust

15,873

296,666

Anchor BanCorp Wisconsin, Inc.

2,866

21,065

Safety Insurance Group, Inc.†

6,737

255,534

Total Financials

9,286,327

Central Pacific Financial Corp.†

14,237

239,324

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

91

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

SMALL-CAP VALUE FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

INDUSTRIALS 14.4%

Material Sciences Corp.*

13,416

$

77,142

Wabash National Corp.†

63,587

$

600,897

A.M. Castle & Co.

4,327

74,770

Arkansas Best Corp.

14,771

497,635

Omnova Solutions, Inc.*

19,196

38,200

Standex International Corp.

15,898

441,170

Total Materials

2,046,148

Gibraltar Industries, Inc.

17,516

327,724

INFORMATION TECHNOLOGY 5.8%

Universal Forest Products, Inc.

8,769

306,126

Gevity HR, Inc.

66,761

486,020

Standard Register Co.

24,417

240,507

SYNNEX Corp.*

18,705

417,870

Watsco, Inc.

4,604

231,489

Ciber, Inc.*

22,393

156,527

Applied Signal Technology, Inc.

11,955

207,778

CTS Corp.

12,072

154,280

Spherion Corp.*

41,961

204,350

Insight Enterprises, Inc.*

8,622

115,621

ABM Industries, Inc.

8,867

193,655

Park Electrochemical Corp.

4,142

100,402

Griffon Corp.*†

21,273

191,883

Black Box Corp.

2,585

89,260

Volt Information Sciences, Inc.*†

19,501

175,119

Symmetricom, Inc.*

16,968

84,331

A.O. Smith Corp.

4,176

163,657

Benchmark Electronics, Inc.*

5,872

82,678

Tredegar Corp.

9,123

162,298

Gerber Scientific, Inc.*

8,867

81,044

Briggs & Stratton Corp.

8,668

140,248

Rudolph Technologies, Inc.*

8,598

72,051

Lydall, Inc.*

13,008

125,267

Methode Electronics, Inc. —

CDI Corp.

5,193

115,960

Class A

5,623

50,270

NCI Building Systems, Inc.*

3,275

103,981

Photronics, Inc.*

16,420

30,870

C&D Technologies, Inc.*†

14,557

82,684

Lawson Products, Inc.

2,901

80,213

Total Information Technology

1,921,224

United Stationers, Inc.*

1,555

74,376

CONSUMER STAPLES 4.4%

Mueller Industries, Inc.

3,111

71,584

Nash Finch Co.

9,285

400,369

Insituform Technologies, Inc. —

Central Garden and Pet Co. —

Class A*

4,539

67,903

Class A*

62,923

374,392

Total Industrials

4,806,504

Spartan Stores, Inc.

9,839

244,794

Alliance One International, Inc.*

48,288

183,494

UTILITIES 7.8%

Longs Drug Stores Corp.

1,555

117,620

Laclede Group, Inc.

7,791

377,786

Lance, Inc.

3,836

87,039

Atmos Energy Corp.

13,397

356,628

Spectrum Brands, Inc.*†

23,702

32,946

CH Energy Group, Inc.

5,766

251,225

Great Atlantic & Pacific

Southwest Gas Corp.

7,417

224,438

Tea Company, Inc*

2,463

26,650

Avista Corp.

8,072

175,243

Allete, Inc.

3,579

159,265

Total Consumer Staples

1,467,304

Piedmont Natural Gas Co.

4,512

144,204

HEALTH CARE 1.8%

UIL Holding Corp.

4,118

141,371

Owens & Minor, Inc.

3,205

155,443

Unisource Energy Corp.

4,732

138,127

Cambrex Corp.*

24,320

149,568

New Jersey Resources Corp.

3,838

137,746

Datascope Corp.†

2,662

137,439

UGI Corp.

5,129

132,226

Gentiva Health Services, Inc.*

3,462

93,266

Central Vermont Public

Medcath Corp.*

4,247

76,106

Service Corp.†

4,855

113,801

Total Health Care

611,822

Cleco Corp.

4,222

106,605

Total Common Stocks

Northwest Natural Gas Co.

1,603

83,356

(Cost $33,044,459)

33,342,617

Southern Union Co.

3,076

63,519

Total Utilities

2,605,540

SECURITIES LENDING COLLATERAL 4.5%

MATERIALS 6.1%

Mount Vernon Securities

Rock-Tenn Co. — Class A

8,095

323,638

Lending Trust Prime

PolyOne Corp.*

45,142

291,166

Portfolio (Note 9)

1,516,971

1,516,971

Wausau Paper Corp.

28,601

289,728

Total Securities Lending Collateral

Quaker Chemical Corp.

9,171

261,007

(Cost $1,516,971)

1,516,971

Stepan Co.

4,350

237,379

A. Schulman, Inc.

9,911

196,040

Georgia Gulf Corp.

71,376

178,440

Schweitzer-Mauduit

International, Inc.

4,141

78,638

92

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

SMALL-CAP VALUE FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 1.0%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$

137,419

$

137,419

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

113,827

113,827

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

80,586

80,586

Total Repurchase Agreements

(Cost $331,832)

331,832

Total Investments 105.5%

(Cost $34,893,262)

$35,191,420

Liabilities in Excess of

Other Assets – (5.5)%

$ (1,848,092)

Net Assets – 100.0%

$33,343,328

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

93

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

MID-CAP VALUE FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 98.9%

Charming Shoppes, Inc.*

28,971

$

141,668

Rent-A-Center, Inc.*

5,593

124,612

FINANCIALS 30.3%

Modine Manufacturing Co.

6,618

95,829

Fidelity National Financial, Inc. —

Media General, Inc.†

7,139

88,738

Class A

11,657

$

171,358

Borders Group, Inc.

11,526

75,611

First American Corp.

3,760

110,920

Collective Brands, Inc.*

3,777

69,157

First Niagara Financial Group, Inc.

6,526

102,784

Bob Evans Farms, Inc.

1,731

47,239

Highwoods Properties, Inc.

2,623

93,274

Regis Corp.

1,597

43,917

Old Republic International Corp.

7,298

93,049

99 Cents Only Stores*

3,757

41,214

Liberty Property Trust

2,292

86,294

Entercom Communications Corp.

7,764

38,975

AmeriCredit Corp.*

8,142

82,478

Lear Corp.*

3,139

32,960

Mack-Cali Realty Corp.

2,250

76,207

Scholastic Corp.

1,255

32,228

Mercury General Corp.

1,288

70,518

Belo Corp. — Class A

5,389

32,118

American Financial Group, Inc.

2,138

63,071

Barnes & Noble, Inc.

1,161

30,279

TCF Financial Corp.

3,485

62,730

Boyd Gaming Corp.

823

7,703

Health Care REIT, Inc.

1,130

60,150

Total Consumer Discretionary

1,672,015

FirstMerit Corp.

2,739

57,519

UTILITIES 12.3%

New York Community Bancorp, Inc.

3,417

57,371

Hawaiian Electric Industries, Inc.

3,564

103,748

Nationwide Health Properties, Inc.

1,540

55,409

WGL Holdings, Inc.

2,447

79,405

Webster Financial Corp.

2,194

55,398

Vectren Corp.

2,795

77,841

Duke Realty Corp.

2,213

54,396

Great Plains Energy, Inc.

3,113

69,171

UDR, Inc.

2,030

53,085

Westar Energy, Inc.

2,661

61,309

Protective Life Corp.

1,849

52,715

AGL Resources, Inc.

1,948

61,128

Hospitality Properties Trust

2,557

52,470

SCANA Corp.

1,543

60,069

Camden Property Trust

1,088

49,896

Oneok, Inc.

1,671

57,482

Colonial BancGroup, Inc.

6,059

47,624

PNM Resources, Inc.

4,980

50,995

Cousins Properties, Inc.

1,868

47,130

Puget Energy, Inc.

1,875

50,062

Weingarten Realty Investors

1,298

46,300

OGE Energy Corp.

1,536

47,432

Associated Banc-Corp.

2,182

43,531

NSTAR

1,381

46,264

Hanover Insurance Group, Inc.

952

43,335

IDACORP, Inc.

1,476

42,937

Arthur J. Gallagher & Co.

1,625

41,698

Alliant Energy Corp.

1,297

41,776

Unitrin, Inc.

1,491

37,186

Black Hills Corp.

1,181

36,694

Equity One, Inc.

1,760

36,062

Sierra Pacific Resources

1,813

17,369

Astoria Financial Corp.

1,736

35,987

BRE Properties, Inc. — Class A

715

35,035

Total Utilities

903,682

Realty Income Corp.

1,339

34,278

INDUSTRIALS 12.2%

Everest Re Group Ltd.

386

33,401

Kelly Services, Inc. — Class A

8,667

165,106

Washington Federal, Inc.

1,600

29,520

YRC Worldwide, Inc.*†

10,551

126,190

PacWest Bancorp

978

27,961

Federal Signal Corp.

8,403

115,121

Horace Mann Educators Corp.

2,147

27,632

Alaska Air Group, Inc.*

3,601

73,425

BancorpSouth, Inc.

980

27,567

GATX Corp.

1,627

64,381

Apollo Investment Corp.

1,600

27,280

Avis Budget Group, Inc.*

11,113

63,789

Wilmington Trust Corp.

883

25,457

Werner Enterprises, Inc.

2,480

53,841

The PMI Group, Inc.

6,613

19,508

Trinity Industries, Inc.

1,977

50,868

Total Financials

2,227,584

Manpower, Inc.

958

41,347

Timken Co.

1,441

40,852

CONSUMER DISCRETIONARY 22.8%

United Rentals, Inc.*

2,618

39,898

ArvinMeritor, Inc.†

18,767

244,722

JetBlue Airways Corp.*

6,536

32,353

Furniture Brands International, Inc.

19,241

202,415

Teleflex, Inc.

490

31,110

Foot Locker, Inc.

10,686

172,686

Ryland Group, Inc.

5,654

149,944

Total Industrials

898,281

94

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

MID-CAP VALUE FUND

MARKET

FACE

MARKET

SHARES

VALUE

AMOUNT

VALUE

INFORMATION TECHNOLOGY 8.1%

REPURCHASE AGREEMENTS 0.5%

Imation Corp.

6,273

$

141,707

Repurchase Agreements (Note 5)

Ingram Micro, Inc. — Class A*

5,106

82,053

Morgan Stanley

Palm, Inc.

13,246

79,079

issued 09/30/08 at 0.05%

Acxiom Corp.

5,767

72,318

due 10/01/08

$14,872

$

14,872

SAIC, Inc.*

3,470

70,198

Mizuho Financial Group, Inc.

Tech Data Corp.*

1,859

55,491

issued 09/30/08 at 0.26%

Diebold, Inc.

1,093

36,189

due 10/01/08

12,318

12,318

Vishay Intertechnology, Inc.*

5,009

33,160

Morgan Stanley

Arrow Electronics, Inc.*

1,049

27,505

issued 09/30/08 at 0.10%

Total Information Technology

597,700

due 10/01/08

8,721

8,721

MATERIALS 7.1%

Total Repurchase Agreements

Olin Corp.

3,679

71,373

(Cost $35,911)

35,911

RPM International, Inc.

3,416

66,065

Total Investments 101.9%

Ferro Corp.

3,088

62,069

(Cost $6,778,883)

$7,485,044

Chemtura Corp.

12,402

56,553

Liabilities in Excess of

Louisiana-Pacific Corp.

5,829

54,210

Other Assets – (1.9)%

$

(143,005)

Valspar Corp.

2,117

47,188

Net Assets – 100.0%

$7,342,039

Worthington Industries, Inc.

3,143

46,956

Sonoco Products Co.

1,341

39,801

Sensient Technologies Corp.

1,030

28,974

Cabot Corp.

906

28,793

Lubrizol Corp.

494

21,311

Total Materials

523,293

HEALTH CARE 3.7%

Kindred Healthcare, Inc.*

3,920

108,074

Omnicare, Inc.

2,835

81,563

Health Management

Associates, Inc. — Class A*

19,519

81,199

Total Health Care

270,836

CONSUMER STAPLES 2.4%

Universal Corp.

1,734

85,122

J.M. Smucker Co.

646

32,746

Smithfield Foods, Inc.*

1,862

29,569

Ruddick Corp.

787

25,538

Total Consumer Staples

172,975

Total Common Stocks

(Cost $6,560,205)

7,266,366

SECURITIES LENDING COLLATERAL 2.5%

Mount Vernon Securities Lending

Trust Prime Portfolio (Note 9)

182,767

182,767

Total Securities Lending Collateral

(Cost $182,767)

182,767

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

REIT — Real Estate Investment Trust.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

95

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

LARGE-CAP VALUE FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 101.0%

KB HOME

21,080

$

414,854

Lennar Corp. — Class A†

24,490

372,003

FINANCIALS 29.0%

Jones Apparel Group, Inc.

19,152

354,503

E*Trade Financial Corp.*

69,883

$

195,672

Dillard’s, Inc. — Class A

21,240

250,632

BB&T Corp.

4,674

176,677

AutoNation, Inc.*

18,190

204,456

Allstate Corp.

3,424

157,915

Leggett & Platt, Inc.†

9,093

198,136

Equity Residential

3,368

149,573

Whirlpool Corp.

2,175

172,456

Apartment Investment &

Centex Corp.

10,290

166,698

Management Co. — Class A

4,227

148,030

New York Times Co. — Class A

11,426

163,278

Marsh & McLennan

Ford Motor Co.*

24,623

128,040

Companies, Inc.

4,540

144,190

Big Lots, Inc.*

4,000

111,320

Bank of America Corp.

4,082

142,870

Macy’s, Inc.

6,039

108,581

MBIA, Inc.

11,714

139,397

Gannett Co., Inc.

6,060

102,475

Comerica, Inc.

4,250

139,357

CBS Corp.

6,498

94,741

JPMorgan Chase & Co.

2,878

134,403

Limited Brands, Inc.

5,320

92,142

Citigroup, Inc.

6,535

134,033

Eastman Kodak Co.

5,118

78,715

First Horizon National Corp.

13,651

127,769

Liz Claiborne, Inc.

4,360

71,635

HCP, Inc.

3,178

127,533

Time Warner, Inc.

5,310

69,614

American Capital Ltd.†

4,728

120,611

J.C. Penney Company, Inc.

2,060

68,680

Travelers Companies, Inc.

2,664

120,413

Mattel, Inc.

3,345

60,344

Marshall & Ilsley Corp.

5,645

113,747

Office Depot, Inc.*

9,090

52,904

Huntington Bancshares, Inc.

13,883

110,925

Carnival Corp.

1,468

51,894

KeyCorp

8,734

104,284

Total Consumer Discretionary

3,813,464

U.S. Bancorp

2,849

102,621

UTILITIES 18.2%

Zions Bancorporation

2,600

100,620

Integrys Energy Group, Inc.

5,855

292,399

Wells Fargo & Co.

2,675

100,393

NiSource, Inc.

15,378

226,979

Capital One Financial Corp.

1,910

97,410

DTE Energy Co.

5,240

210,229

CIT Group, Inc.

13,960

97,162

Nicor, Inc.

4,061

180,105

Cincinnati Financial Corp.

3,372

95,900

Duke Energy Corp.

10,108

176,182

SunTrust Banks, Inc.

2,036

91,600

Progress Energy, Inc.†

4,041

174,288

Regions Financial Corp.

8,954

85,958

Pinnacle West Capital Corp.

4,957

170,570

M&T Bank Corp.

926

82,645

Consolidated Edison, Inc.

3,860

165,826

Developers Diversified

TECO Energy, Inc.

10,126

159,282

Realty Corp.

2,561

81,158

Pepco Holdings, Inc.

6,140

140,667

Host Hotels & Resorts, Inc.

5,450

72,430

Xcel Energy, Inc.

6,555

131,035

Lincoln National Corp.

1,690

72,349

Ameren Corp.

2,707

105,654

PNC Financial Services

CenterPoint Energy, Inc.

6,832

99,542

Group, Inc.

962

71,861

Southern Co.

2,533

95,469

Chubb Corp.

1,200

65,880

PG&E Corp.

2,109

78,982

XL Capital Ltd.

3,630

65,122

American Electric

Sovereign Bancorp, Inc.

16,190

63,951

Power Co., Inc.

2,061

76,319

Fifth Third Bancorp

5,250

62,475

CMS Energy Corp.

5,610

69,957

Morgan Stanley

2,700

62,100

Dominion Resources, Inc.

1,584

67,764

Merrill Lynch & Co., Inc.

1,860

47,058

Hartford Financial Services

Total Utilities

2,621,249

Group, Inc.

1,078

44,187

INDUSTRIALS 5.5%

Genworth Financial, Inc. —

Ryder System, Inc.

4,474

277,388

Class A

4,923

42,387

Masco Corp.

7,588

136,129

National City Corp.

16,832

29,456

Tyco International Ltd.

3,110

108,912

General Growth Properties, Inc.

1,790

27,029

Allied Waste Industries, Inc.*

8,975

99,712

Wachovia Corp.

5,336

18,676

RR Donnelley & Sons Co.

2,511

61,595

Total Financials

4,167,827

Avery Dennison Corp.

1,230

54,711

Northrop Grumman Corp.

778

47,100

CONSUMER DISCRETIONARY 26.5%

D.R. Horton, Inc.

32,670

425,363

Total Industrials

785,547

96

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

LARGE-CAP VALUE FUND

MARKET

FACE

MARKET

SHARES

VALUE

AMOUNT

VALUE

MATERIALS 4.9%

REPURCHASE AGREEMENTS 1.8%

Weyerhaeuser Co.

2,505

$

151,753

Repurchase Agreements (Note 5)

International Paper Co.

5,510

144,252

Morgan Stanley

Ashland, Inc.

4,423

129,328

issued 09/30/08 at 0.05%

Bemis Co.

4,304

112,808

due 10/01/08

$109,225

$

109,225

Dow Chemical Co.

3,243

103,063

Mizuho Financial Group, Inc.

MeadWestvaco Corp.

2,666

62,144

issued 09/30/08 at 0.26%

Total Materials

703,348

due 10/01/08

90,473

90,473

HEALTH CARE 4.8%

Morgan Stanley

AmerisourceBergen Corp.

5,656

212,948

issued 09/30/08 at 0.10%

Tenet Healthcare Corp.*

18,961

105,234

due 10/01/08

64,052

64,052

Covidien Ltd.

1,900

102,144

Total Repurchase Agreements

McKesson Corp.

1,892

101,808

(Cost $263,750)

263,750

Cardinal Health, Inc.

1,753

86,388

Total Investments 103.4%

Pfizer, Inc.

4,088

75,383

(Cost $13,883,538)

$14,871,246

Total Health Care

683,905

Liabilities in Excess of

CONSUMER STAPLES 4.6%

Other Assets – (3.4)%

$

(489,372)

Tyson Foods, Inc. — Class A

18,293

218,418

Net Assets – 100.0%

$14,381,874

SUPERVALU, INC.

6,375

138,337

Kroger Co.

3,620

99,478

Dean Foods Co.*

4,230

98,813

Reynolds American, Inc.

1,275

61,991

Safeway, Inc.

2,107

49,978

Total Consumer Staples

667,015

TELECOMMUNICATION SERVICES 3.6%

Frontier Communications Corp.

9,958

114,517

Embarq Corp.

2,672

108,349

Verizon Communications, Inc.

2,841

91,168

Windstream Corp.

7,366

80,584

Sprint Nextel Corp.

12,159

74,170

AT&T, Inc.

1,948

54,388

Total Telecommunication Services

523,176

ENERGY 2.4%

Spectra Energy Corp.

14,810

352,478

Total Energy

352,478

INFORMATION TECHNOLOGY 1.5%

Jabil Circuit, Inc.

14,050

134,037

Micron Technology, Inc.*

18,615

75,391

Total Information Technology

209,428

Total Common Stocks

(Cost $13,539,729)

14,527,437

SECURITIES LENDING COLLATERAL 0.6%

Mount Vernon Securities Lending

Trust Prime Portfolio (Note 9)

80,059

80,059

Total Securities Lending Collateral

(Cost $80,059)

80,059

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

97

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

SMALL-CAP GROWTH FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 101.0%

Bankrate, Inc.*

6,148

$

239,219

Concur Technologies, Inc.*

4,275

163,562

CONSUMER DISCRETIONARY 28.5%

Epicor Software Corp.*

20,452

161,366

Meritage Homes Corp.*†

14,187

$

350,419

United Online, Inc.

15,245

143,456

PetMed Express, Inc.*†

20,527

322,274

Comtech

Panera Bread Co. — Class A*

5,421

275,929

Telecommunications Corp.*

2,912

143,387

True Religion Apparel, Inc.*

9,836

254,260

CACI International, Inc. —

Standard-Pacific Corp.*

50,445

247,685

Class A*

2,798

140,180

Stage Stores, Inc.

17,251

235,649

Smith Micro Software, Inc.*

19,457

138,145

NutriSystem, Inc.†

13,266

235,073

Tyler Technologies, Inc.*

8,473

128,535

Coinstar, Inc.*

7,301

233,632

DealerTrack Holdings, Inc.*

7,526

126,738

Pool Corp.†

9,635

224,784

Netgear, Inc.*

8,385

125,775

K-Swiss, Inc. — Class A

11,614

202,084

Intevac, Inc.*

11,186

119,019

Gymboree Corp.*

5,404

191,842

SPSS, Inc.*

3,820

112,155

Jos. A. Bank Clothiers, Inc.*

5,372

180,499

Faro Technologies, Inc.*

5,441

110,833

Tractor Supply Co.*

4,135

173,877

Secure Computing Corp.*

20,138

110,356

Volcom, Inc.*

10,027

173,266

InfoSpace, Inc.

9,848

106,851

Papa John’s International, Inc.*

6,142

166,817

Scansource, Inc.*

3,593

103,443

Hibbett Sports Inc.*

7,932

158,799

EPIQ Systems, Inc.*

7,377

100,327

CEC Entertainment, Inc.*

4,754

157,833

Blackbaud, Inc.

5,220

96,309

Pre-Paid Legal Services, Inc.*

3,631

149,815

Daktronics, Inc.

5,081

84,650

Dress Barn, Inc.*

9,513

145,454

Micros Systems, Inc.*

3,140

83,712

Arbitron, Inc.

3,235

144,572

Sonic Solutions, Inc.*†

15,491

68,160

Polaris Industries, Inc.

2,957

134,514

Brightpoint, Inc.*

8,726

62,827

Zumiez, Inc.*

8,008

131,972

Stratasys, Inc.*

3,456

60,376

P.F. Chang’s China Bistro, Inc.*

5,605

131,942

Diodes, Inc.*

3,178

58,634

Stamps.com, Inc.*

10,833

126,421

ViaSat, Inc.*

2,484

58,573

Universal Technical

LoJack Corp.*

6,376

42,655

Institute, Inc.*

6,084

103,793

Total Information Technology

4,032,202

Drew Industries, Inc.*

6,052

103,550

HEALTH CARE 18.7%

Shuffle Master, Inc.*

20,224

102,940

LHC Group, Inc.*

11,841

337,232

Sonic Corp.*

6,469

94,253

HealthExtras, Inc.*

11,185

292,152

Deckers Outdoor Corp.*

769

80,037

Martek Biosciences Corp.

8,819

277,093

Fossil, Inc.*

2,673

75,459

Palomar Medical

Christopher & Banks Corp.

9,128

70,012

Technologies, Inc.*

15,870

213,610

Monarch Casino &

Immucor, Inc.*

5,763

184,185

Resort, Inc.*

5,572

63,465

Sciele Pharma, Inc.

5,888

181,292

LKQ Corp.*

3,228

54,779

AMN Healthcare

WMS Industries, Inc.*

1,752

53,559

Services, Inc.*

9,117

160,186

Select Comfort Corp.*

22,735

37,513

Integra LifeSciences

CROCS, Inc.*

7,276

26,048

Holdings Corp.*

3,468

152,696

Total Consumer Discretionary

5,614,820

PharMerica Corp.*

6,362

143,081

INFORMATION TECHNOLOGY 20.5%

Molina Healthcare, Inc.*

4,148

128,588

j2 Global Communications, Inc.*

13,543

316,229

inVentiv Health, Inc.*

6,581

116,220

Quality Systems, Inc.

6,875

290,538

Cooper Companies, Inc.

3,316

115,264

Websense, Inc.*

12,621

282,079

Kendle International, Inc.*

2,502

111,864

Wright Express Corp.*

8,513

254,113

Dionex Corp.*

1,689

107,336

98

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

SMALL-CAP GROWTH FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

Merit Medical Systems, Inc.*

5,675

$

106,520

Petroleum

AmSurg Corp.*

3,757

95,691

Development Corp.*

3,679

$

163,237

Pediatrix Medical Group, Inc.*

1,765

95,169

CARBO Ceramics, Inc.

3,013

155,501

Kensey Nash Corp.*

2,780

87,459

Superior Well Services, Inc.*

4,766

120,628

Par Pharmaceutical

Dril-Quip, Inc.*

995

43,173

Companies, Inc.*

6,880

84,555

Total Energy

1,536,260

American Medical Systems

INDUSTRIALS 7.6%

Holdings, Inc.*

4,728

83,969

Landstar System, Inc.

4,745

209,065

Amedisys, Inc.*

1,703

82,885

Ceradyne, Inc.*

4,733

173,512

Abaxis, Inc.*

3,644

71,787

Orbital Sciences Corp.*

6,719

161,055

Air Methods Corp.*

2,496

70,662

Knight Transportation, Inc.

9,052

153,613

ICU Medical, Inc.*

2,296

69,821

Simpson

LCA-Vision, Inc.

14,945

69,345

Manufacturing Co., Inc.†

4,835

130,980

Sunrise Senior Living, Inc.*

4,805

66,261

Heartland Express, Inc.

7,629

118,402

Haemonetics Corp.*

971

59,930

Curtiss-Wright Corp.

2,547

115,761

SurModics, Inc.*

1,767

55,643

Toro Co.

2,453

101,309

Healthways, Inc.*

3,152

50,842

Teledyne Technologies, Inc.*

1,677

95,857

PharmaNet Development

Forward Air Corp.

3,441

93,698

Group, Inc.*

2,862

20,664

Waste Connections, Inc.*

2,724

93,433

Total Health Care

3,692,002

AAR Corp.*

3,592

59,591

FINANCIALS 11.1%

Total Industrials

1,506,276

Greenhill & Co., Inc.

5,075

374,281

MATERIALS 3.8%

Wilshire Bancorp, Inc.

23,335

283,987

Headwaters, Inc.*

17,098

228,258

Portfolio Recovery

Deltic Timber Corp.

3,418

217,522

Associates, Inc.*

5,459

265,471

NewMarket Corp.

2,874

151,057

TradeStation Group, Inc.*

20,572

192,348

Balchem Corp.

3,808

101,559

Zenith National

Brush Engineered

Insurance Corp.

4,906

179,756

Materials, Inc.*

2,775

51,532

Infinity Property &

Casualty Corp.

4,255

175,306

Total Materials

749,928

World Acceptance Corp.*

4,659

167,724

CONSUMER STAPLES 3.0%

optionsXpress Holdings, Inc.

8,613

167,265

Mannatech, Inc.†

45,006

180,024

PrivateBancorp, Inc.

3,152

131,312

Green Mountain Coffee

Nara Bancorp, Inc.

10,175

113,960

Roasters, Inc.*

2,889

113,653

First Cash Financial

Chattem, Inc.*

1,412

110,390

Services, Inc.*

6,254

93,810

Boston Beer Co., Inc. —

UCBH Holdings, Inc.

6,727

43,120

Class A*

2,219

105,380

Total Financials

2,188,340

United Natural Foods, Inc.*

3,562

89,015

ENERGY 7.8%

Total Consumer Staples

598,462

Basic Energy Services, Inc.*

13,012

277,156

Total Common Stocks

Unit Corp.*

4,438

221,101

(Cost $19,317,336)

19,918,290

St. Mary Land &

Exploration Co.

5,545

197,679

SECURITIES LENDING COLLATERAL 2.4%

Hornbeck Offshore

Mount Vernon Securities Lending

Services, Inc.*

4,691

181,166

Trust Prime Portfolio (Note 9)

480,527

480,527

Penn Virginia Corp.

3,305

176,619

Total Securities Lending Collateral

(Cost $480,527)

480,527

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

99

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

SMALL-CAP GROWTH FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 1.1%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$

91,680

$

91,680

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

75,941

75,941

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

53,763

53,763

Total Repurchase Agreements

(Cost $221,384)

221,384

Total Investments 104.5%

(Cost $20,019,247)

$20,620,201

Liabilities in Excess of

Other Assets – (4.5)%

$

(893,620)

Net Assets – 100.0%

$19,726,581

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

100

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

MID-CAP GROWTH FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 100.7%

Kinetic Concepts, Inc.*

4,326

$

123,680

ResMed, Inc.*

2,871

123,453

CONSUMER DISCRETIONARY 30.2%

Gen-Probe, Inc.*

2,166

114,906

Aeropostale, Inc.*

9,439

$

303,086

Hologic, Inc.*

5,815

112,404

DreamWorks Animation

Community Health

SKG, Inc. — Class A*

9,463

297,611

Systems, Inc.*

3,549

104,021

NVR, Inc.*

470

268,840

Henry Schein, Inc.*

1,542

83,021

Urban Outfitters, Inc.*

7,775

247,789

Covance, Inc.*

869

76,828

Toll Brothers, Inc.*

9,798

247,204

Cerner Corp.*

1,704

76,067

Ross Stores, Inc.

6,011

221,265

Affymetrix, Inc.*

8,628

66,781

Strayer Education, Inc.

1,017

203,664

Charles River Laboratories

Marvel Entertainment, Inc.*

5,580

190,501

International, Inc.*

1,015

56,363

ITT Educational Services, Inc.*

2,068

167,322

Medicis Pharmaceutical

Dollar Tree, Inc.*

4,441

161,475

Corp. — Class A

2,969

44,268

Corinthian Colleges, Inc.*

10,658

159,870

Total Health Care

2,903,307

The Warnaco Group, Inc.*

3,341

151,314

INFORMATION TECHNOLOGY 17.8%

Under Armour, Inc.*

4,750

150,860

Digital River, Inc.*

8,545

276,858

Timberland Co. — Class A*

8,395

145,821

Flir Systems, Inc.*

5,670

217,841

Advance Auto Parts, Inc.

3,599

142,736

F5 Networks, Inc.*

8,515

199,081

Chico’s FAS, Inc.*

25,559

139,808

Silicon Laboratories, Inc.*

5,189

159,302

Matthews International

DST Systems, Inc.*

2,758

154,420

Corp. — Class A

2,693

136,643

Cree, Inc.*

6,745

153,651

Career Education Corp.*

7,805

127,612

Western Digital Corp.*

7,095

151,265

John Wiley & Sons, Inc. —

ACI Worldwide, Inc.*

8,522

149,305

Class A

2,620

105,979

FactSet Research Systems Inc.

2,825

147,606

Valassis Communications, Inc.*

11,193

96,931

McAfee, Inc.*

3,780

128,369

American Eagle Outfitters, Inc.

5,972

91,073

Global Payments, Inc.

2,755

123,589

priceline.com, Inc.*

1,285

87,933

Plantronics, Inc.

5,434

122,374

O’Reilly Automotive, Inc.*

3,174

84,968

Alliance Data Systems Corp.*

1,754

111,169

Scientific Games Corp. —

ANSYS, Inc.*

2,380

90,131

Class A*

3,468

79,833

SRA International, Inc. —

Williams-Sonoma, Inc.

4,824

78,052

Class A*

3,625

82,034

Chipotle Mexican Grill, Inc. —

Gartner, Inc. — Class A*

3,281

74,413

Class A*

1,286

71,360

Fair Isaac Corp.

3,148

72,561

Cheesecake Factory, Inc.*

4,846

70,849

Macrovision Solutions Corp.*

4,425

68,057

Sotheby’s

3,397

68,144

ValueClick, Inc.*

6,385

65,319

Pacific Sunwear of

Trimble Navigation Ltd.*

2,360

61,030

California, Inc.*

10,030

67,502

Guess?, Inc.

1,795

62,448

Total Information Technology

2,608,375

Total Consumer Discretionary

4,428,493

INDUSTRIALS 10.0%

Navigant Consulting, Inc.*

11,397

226,686

HEALTH CARE 19.8%

Joy Global, Inc.

3,540

159,796

Psychiatric Solutions, Inc.*

8,593

326,104

Alliant Techsystems, Inc.*

1,660

155,940

United Therapeutics Corp.*

2,360

248,201

Dun & Bradstreet Corp.

1,505

142,012

Sepracor, Inc.*

10,796

197,675

Graco, Inc.

3,964

141,158

Invitrogen Corp.*

5,200

196,560

Korn/Ferry International, Inc.*

7,417

132,171

Endo Pharmaceuticals

Rollins, Inc.

5,519

104,751

Holdings, Inc.*

7,551

151,020

Donaldson Co., Inc.

2,353

98,614

VCA Antech, Inc.*

4,920

144,992

Copart, Inc.*

2,293

87,134

Techne Corp.*

1,987

143,303

Corporate Executive Board Co.

2,498

78,062

Pharmaceutical Product

Stericycle, Inc.*

1,204

70,928

Development, Inc.

3,213

132,858

Mine Safety Appliances Co.

1,831

69,798

Apria Healthcare Group, Inc.*

7,028

128,191

IDEXX Laboratories, Inc.*

2,320

127,136

Total Industrials

1,467,050

Lincare Holdings, Inc.*

4,170

125,475

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

101

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

MID-CAP GROWTH FUND

MARKET

FACE

MARKET

SHARES

VALUE

AMOUNT

VALUE

ENERGY 8.2%

REPURCHASE AGREEMENTS 0.8%

Encore Acquisition Co.*

8,761

$

366,035

Repurchase Agreements (Note 5)

Cimarex Energy Co.

4,163

203,612

Morgan Stanley

Helix Energy Solutions

issued 09/30/08 at 0.05%

Group, Inc.*

4,910

119,215

due 10/01/08

$50,774

$

50,774

FMC Technologies, Inc.*

2,288

106,506

Mizuho Financial Group, Inc.

Frontier Oil Corp.

4,959

91,345

issued 09/30/08 at 0.26%

Denbury Resources, Inc.*

4,405

83,871

due 10/01/08

42,058

42,058

Oceaneering International, Inc.*

1,560

83,179

Morgan Stanley

Newfield Exploration Co.*

2,207

70,602

issued 09/30/08 at 0.10%

Quicksilver Resources, Inc.*

3,548

69,647

due 10/01/08

29,775

29,775

Total Energy

1,194,012

Total Repurchase Agreements

FINANCIALS 6.5%

(Cost $122,607)

122,607

Philadelphia Consolidated

Total Investments 101.5%

Holding Corp.*

4,291

251,324

(Cost $13,202,359)

$14,882,858

Brown & Brown, Inc.

6,390

138,152

Liabilities in Excess of

W.R. Berkley Corp.

5,706

134,376

Other Assets – (1.5)%

$

(217,520)

Jones Lang LaSalle, Inc.

3,006

130,701

Net Assets – 100.0%

$14,665,338

Eaton Vance Corp.

3,156

111,186

SEI Investments Co.

4,257

94,505

Affiliated Managers Group, Inc.*

1,110

91,964

Total Financials

952,208

MATERIALS 4.2%

Cleveland-Cliffs, Inc.

4,792

253,688

Steel Dynamics, Inc.

8,028

137,199

Commercial Metals Co.

7,421

125,341

Terra Industries, Inc.

3,527

103,694

Total Materials

619,922

CONSUMER STAPLES 4.0%

Hansen Natural Corp.*

6,137

185,644

Energizer Holdings, Inc.*

1,943

156,509

NBTY, Inc.*

4,517

133,342

Church & Dwight Co., Inc.

1,794

111,389

Total Consumer Staples

586,884

Total Common Stocks

(Cost $13,079,752)

14,760,251

* Non-Income Producing Security.

102

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

LARGE-CAP GROWTH FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

COMMON STOCKS 101.0%

Polo Ralph Lauren Corp.

820

$

54,645

Omnicom Group, Inc.

1,403

54,100

HEALTH CARE 19.9%

McGraw-Hill Companies, Inc.

1,460

46,151

Express Scripts, Inc.*

1,993

$

147,123

Harman International

Varian Medical Systems, Inc.*

2,457

140,368

Industries, Inc.

1,308

44,563

Zimmer Holdings, Inc.*

2,174

140,353

GameStop Corp. — Class A*

1,080

36,947

Intuitive Surgical, Inc.*

550

132,539

International Game

DaVita, Inc.*

2,190

124,852

Technology, Inc.

1,737

29,842

Amgen, Inc.*

2,094

124,111

Total Consumer Discretionary

2,271,773

Gilead Sciences, Inc.*

2,282

104,014

INFORMATION TECHNOLOGY 18.8%

St. Jude Medical, Inc.*

2,365

102,854

Google, Inc. — Class A*

292

116,952

Forest Laboratories, Inc.*

3,499

98,952

Intuit, Inc.*

3,692

116,704

Barr Pharmaceuticals, Inc.*

1,464

95,599

Yahoo!, Inc.*

6,087

105,305

Celgene Corp.*

1,494

94,540

Qualcomm, Inc.

2,378

102,183

IMS Health, Inc.

4,863

91,959

Cognizant Technology

Medtronic, Inc.

1,804

90,380

Solutions Corp. — Class A*

4,444

101,456

Waters Corp.*

1,460

84,943

Lexmark International, Inc.*

2,886

93,997

Patterson Companies, Inc.*

2,696

81,985

Adobe Systems, Inc.*

2,348

92,675

Laboratory Corporation of

Fiserv, Inc.*

1,840

87,069

America Holdings*

1,119

77,771

Oracle Corp.*

4,281

86,947

Biogen Idec, Inc.*

1,540

77,447

Symantec Corp.*

4,386

85,878

Stryker Corp.

1,220

76,006

Dell, Inc.*

5,059

83,372

Quest Diagnostics, Inc.

1,390

71,821

Cisco Systems, Inc.*

3,435

77,494

Hospira, Inc.*

1,873

71,549

Apple, Inc.*

670

76,152

Johnson & Johnson, Inc.

1,008

69,834

eBay, Inc.*

3,282

73,451

Coventry Health Care, Inc.*

2,114

68,811

Amphenol Corp. — Class A

1,790

71,851

C.R. Bard, Inc.

656

62,235

Autodesk, Inc.*

2,038

68,375

Genzyme Corp.*

740

59,859

Salesforce.com, Inc.*

1,310

63,404

Becton, Dickinson & Co.

680

54,577

QLogic Corp.*†

4,118

63,252

UnitedHealth Group, Inc.

2,105

53,446

SanDisk Corp.*

3,218

62,912

Total Health Care

2,397,928

MasterCard, Inc.

350

62,065

CONSUMER DISCRETIONARY 18.9%

Microsoft Corp.

2,310

61,654

Sears Holdings Corp.*

1,845

172,507

Western Union Co.

2,340

57,728

Coach, Inc.*

5,481

137,244

NetApp, Inc.*

3,068

55,930

Amazon.com, Inc.*

1,809

131,623

Harris Corp.

1,176

54,331

Bed Bath & Beyond, Inc.*

4,149

130,320

Total System Services, Inc.

3,259

53,448

Apollo Group, Inc. — Class A*

2,160

128,088

Citrix Systems, Inc.*

1,841

46,504

TJX Companies, Inc.

4,053

123,697

Motorola, Inc.

6,250

44,625

AutoZone, Inc.*

950

117,173

Akamai Technologies, Inc.*

2,440

42,554

H&R Block, Inc.

4,965

112,954

Electronic Arts, Inc.*

1,083

40,060

Lowe’s Companies, Inc.

4,091

96,916

National Semiconductor Corp.

2,250

38,722

Harley-Davidson, Inc.

2,449

91,348

BMC Software, Inc.*

1,070

30,634

Darden Restaurants, Inc.

3,190

91,330

Nvidia Corp.*

1,873

20,060

Black & Decker Corp.

1,478

89,788

MEMC Electronic

Starbucks Corp.*

5,700

84,759

Materials, Inc.*

680

19,217

Yum! Brands, Inc.

2,502

81,590

Total Information Technology

2,256,961

Kohl’s Corp.*

1,688

77,783

ENERGY 12.8%

Expedia, Inc.*

4,810

72,679

XTO Energy, Inc.

2,955

137,467

Goodyear Tire & Rubber Co.*

4,580

70,120

Apache Corp.

1,120

116,794

Nike, Inc. — Class B

1,010

67,569

EOG Resources, Inc.

1,300

116,298

Abercrombie & Fitch Co. —

ConocoPhillips

1,330

97,423

Class A

1,660

65,487

Chesapeake Energy Corp.

2,570

92,160

Best Buy Company, Inc.

1,668

62,550

Schlumberger Ltd.

1,130

88,242

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

103

SCHEDULE OF INVESTMENTS (Unaudited) (continued)

September 30, 2008

LARGE-CAP GROWTH FUND

MARKET

MARKET

SHARES

VALUE

SHARES

VALUE

Sunoco, Inc.

2,350

$

83,613

FINANCIALS 7.2%

Devon Energy Corp.

915

83,448

Moody’s Corp.†

4,100

$

139,400

Murphy Oil Corp.

1,230

78,892

Progressive Corp.

7,221

125,645

Exxon Mobil Corp.

990

76,884

CB Richard Ellis Group, Inc. —

Halliburton Co.

2,270

73,525

Class A*

7,890

105,489

Transocean, Inc.*

660

72,494

Leucadia National Corp.

2,166

98,423

BJ Services Co.

3,369

64,449

SLM Corp.*

6,068

74,879

Pioneer Natural Resources Co.

1,080

56,462

IntercontinentalExchange, Inc.*

910

73,419

Smith International, Inc.

935

54,828

CME Group, Inc.

188

69,844

Valero Energy Corp.

1,730

52,419

Federated Investors, Inc. —

Southwestern Energy Co.*

1,360

41,534

Class B

2,296

66,239

Cabot Oil & Gas Corp.

1,140

41,200

Franklin Resources, Inc.

530

46,709

Consol Energy, Inc.

816

37,446

American Express Co.

1,134

40,178

Baker Hughes, Inc.

610

36,929

NYSE Euronext

566

22,176

Cameron International Corp.*

912

35,149

Total Financials

862,401

Total Energy

1,537,656

MATERIALS 5.5%

CONSUMER STAPLES 9.0%

United States Steel Corp.

1,400

108,654

Anheuser-Busch

Ball Corp.

2,643

104,372

Companies, Inc.

1,770

114,838

Nucor Corp.

2,378

93,931

Clorox Co.

1,810

113,469

Freeport-McMoRan

Avon Products, Inc.

2,494

103,675

Copper & Gold, Inc.

1,320

75,042

UST, Inc.

1,529

101,740

Ecolab, Inc.

1,324

64,240

Kellogg Co.

1,655

92,845

Sigma-Aldrich Corp.

1,190

62,380

Hershey Co.

2,254

89,123

Titanium Metals Corp.

5,049

57,256

Campbell Soup Co.

2,230

86,078

CF Industries Holdings, Inc.

580

53,047

Colgate-Palmolive Co.

1,134

85,447

Pactiv Corp.*

2,000

49,660

Estee Lauder

Total Materials

668,582

Companies, Inc. — Class A

1,676

83,649

UTILITIES 1.0%

Wm. Wrigley Jr. Co.

1,007

79,956

Questar Corp.

1,188

48,613

Pepsi Bottling Group, Inc.

2,265

66,070

AES Corp.*

3,907

45,673

PepsiCo, Inc.

878

62,575

Constellation Energy Group, Inc.

890

21,627

Total Consumer Staples

1,079,465

Total Utilities

115,913

INDUSTRIALS 7.9%

Total Common Stocks

Lockheed Martin Corp.

760

83,349

(Cost $11,180,457)

12,145,392

Caterpillar, Inc.

1,350

80,460

Expeditors International of

SECURITIES LENDING COLLATERAL 0.1%

Washington, Inc.

2,160

75,254

Mount Vernon Securities Lending

L-3 Communications

Trust Prime Portfolio (Note 9)

8,704

8,704

Holdings, Inc.

764

75,117

Total Securities Lending Collateral

CH Robinson Worldwide, Inc.

1,350

68,796

(Cost $8,704)

8,704

Cummins, Inc.

1,560

68,203

Pitney Bowes, Inc.

2,000

66,520

Danaher Corp.

945

65,583

Rockwell Collins, Inc.

1,250

60,113

Fastenal Co.

1,180

58,280

Equifax, Inc.

1,640

56,498

General Dynamics Corp.

754

55,509

ITT Corporation

938

52,162

Terex Corp.*

1,090

33,267

Rockwell Automation, Inc.

820

30,619

Jacobs Engineering Group, Inc.*

460

24,983

Total Industrials

954,713

104

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

SCHEDULE OF INVESTMENTS (Unaudited) (concluded)

September 30, 2008

LARGE-CAP GROWTH FUND

FACE

MARKET

AMOUNT

VALUE

REPURCHASE AGREEMENTS 0.7%

Repurchase Agreements (Note 5)

Morgan Stanley

issued 09/30/08 at 0.05%

due 10/01/08

$34,755

$

34,755

Mizuho Financial Group, Inc.

issued 09/30/08 at 0.26%

due 10/01/08

28,788

28,788

Morgan Stanley

issued 09/30/08 at 0.10%

due 10/01/08

20,381

20,381

Total Repurchase Agreements

(Cost $83,924)

83,924

Total Investments 101.8%

(Cost $11,273,085)

$12,238,020

Liabilities in Excess of

Other Assets – (1.8)%

$

(213,465)

Net Assets – 100.0%

$12,024,555

* Non-Income Producing Security.

† All or a portion of this security is on loan at September 30, 2008 — See Note 9.

See Notes to Financial Statements.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

105

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2008

U.S. GOVERNMENT MONEY MARKET FUND

FACE

MARKET

FACE

MARKET

AMOUNT

VALUE

AMOUNT

VALUE

FEDERAL AGENCY DISCOUNT NOTES 73.3%

REPURCHASE AGREEMENTS 21.7%

Fannie Mae*

Repurchase Agreements (Note 5)

2.50% due 01/12/09

$100,000,000

$

99,284,722

Morgan Stanley

2.48% due 10/27/08

50,000,000

49,910,444

issued 09/30/08 at 0.05%

2.28% due 01/28/09

50,000,000

49,623,167

due 10/01/08

$132,489,714

$

132,489,714

2.76% due 01/26/09

25,000,000

24,775,750

Mizuho Financial Group, Inc.

2.77% due 02/02/09

25,000,000

24,761,472

issued 09/30/08 at 0.26%

2.79% due 02/25/09

25,000,000

24,715,187

due 10/01/08

109,744,472

109,744,472

2.66% due 01/05/09

10,000,000

9,929,067

Morgan Stanley

Farmer Mac*

issued 09/30/08 at 0.10%

2.20% due 10/01/08

25,000,000

25,000,000

due 10/01/08

77,695,201

77,695,201

2.34% due 10/14/08

25,000,000

24,978,875

Total Repurchase Agreements

2.35% due 10/16/08

25,000,000

24,975,521

(Cost $319,929,387)

319,929,387

2.50% due 12/12/08

25,000,000

24,875,000

Total Investments 106.6%

Federal Farm Credit*

(Cost $1,569,900,143)

$1,569,900,143

2.15% due 10/23/08

25,000,000

24,967,153

2.18% due 10/29/08

25,000,000

24,957,611

Liabilities in Excess of

Federal Home Loan Bank*

Other Assets – (6.6)%

$

(97,344,938)

2.56% due 10/02/08

50,000,000

49,996,444

Net Assets – 100.0%

$1,472,555,205

2.62% due 10/07/08

50,000,000

49,978,167

2.47% due 10/10/08

50,000,000

49,969,125

2.50% due 10/27/08

50,000,000

49,909,722

2.80% due 12/17/08

50,000,000

49,696,904

2.31% due 01/12/09

50,000,000

49,669,542

2.61% due 01/15/09

50,000,000

49,615,750

3.30% due 01/02/09

50,000,000

49,573,750

3.10% due 01/12/09

50,000,000

49,556,528

2.46% due 11/14/08

25,000,000

24,924,833

3.29% due 01/02/09

25,000,000

24,787,521

2.80% due 02/17/09

25,000,000

24,729,722

Freddie Mac*

2.32% due 10/06/08

25,000,000

24,991,944

2.02% due 10/14/08

25,000,000

24,981,764

2.09% due 10/20/08

25,000,000

24,972,424

2.33% due 10/31/08

25,000,000

24,951,458

2.41% due 11/19/08

25,000,000

24,917,993

Total Federal Agency Discount Notes

(Cost $1,079,977,560)

1,079,977,560

FEDERAL AGENCY BONDS 11.6%

Federal Home Loan Bank*

3.25% due 01/14/09

50,000,000

50,000,000

2.88% due 01/30/09

50,000,000

49,996,639

2.26% due 10/10/08

25,000,000

24,998,754

2.80% due 03/17/09

15,000,000

15,000,000

2.85% due 03/04/09

15,000,000

15,000,000

2.23% due 03/12/09

15,000,000

14,997,803

Total Federal Agency Bonds

(Cost $169,993,196)

169,993,196

* The issuer is a publicly traded company that operates under a Congressional charter; its securities are neither issued nor guaranteed by the

U.S. Government.

106

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

This page intentionally left blank.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

107

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)

Inverse

S&P 500

Nova

S&P 500

Strategy

NASDAQ-100^®

Fund

Fund

Fund

Fund

ASSETS

Investment Securities

$

81,491,953

$105,792,698

$198,800,799

$

560,542,757

Repurchase Agreements

10,533,202

38,833,784

112,395,018

18,783,317

Total Investments

92,025,155

144,626,482

311,195,817

579,326,074

Segregated Cash with Broker

4,807,681

3,758,421

24,967,152

1,413,677

Cash

—

2,991

—

—

Deposits with Brokers for Securities Sold Short

—

—

—

—

Receivable for Swap Units Sold

3,314

3,480

—

—

Variation Margin on Futures Contracts

3,037,696

2,413,287

1,440,000

1,194,908

Receivable for Securities Sold

—

1,556,135

—

115,309

Receivable for Fund Shares Sold

316,233

517,140

5,039,210

2,180,223

Investment Income Receivable

127,420

107,913

419

33,332

Total Assets

100,317,499

152,985,849

342,642,598

584,263,523

LIABILITIES

Short Sales at Market Value

—

—

—

—

Payable for Swap Units Sold

—

—

98,118

2,541

Variation Margin on Futures Contracts

—

—

16,518,323

—

Payable upon Return of Securities Loaned

85,572

41,536

—

29,320,434

Payable for Securities Purchased

1,670,436

—

—

117,728

Payable for Fund Shares Redeemed

2,483,186

2,108,259

2,315,006

4,040,487

Investment Advisory Fees Payable

61,312

70,384

228,612

364,792

Transfer Agent and Administrative Fees Payable

20,437

23,461

63,503

121,597

Distribution and Service Fees Payable

26,045

28,894

31,555

17,856

Portfolio Accounting Fees Payable

8,175

9,385

24,017

39,217

Custody Fees Payable

2,458

3,187

7,620

14,592

Short Sales Dividends Payable

—

—

—

—

Dividends Payable

—

—

—

—

Other Liabilities

63,250

36,338

138,538

382,183

Total Liabilities

4,420,871

2,321,444

19,425,292

34,421,427

NET ASSETS

$

95,896,628

$150,664,405

$323,217,306

$

549,842,096

NET ASSETS CONSIST OF

Paid-In Capital

$272,353,003

$166,300,700

$580,857,049

$1,107,598,949

Undistributed Net Investment Income (Loss)

798,828

197,157

4,917,755

(2,367,907)

Accumulated Net Realized Loss on Investments

(184,523,801)

(9,864,841)

(271,087,832)

(743,720,354)

Net Unrealized Appreciation (Depreciation) on Investments

7,268,598

(5,968,611)

8,530,334

188,331,408

NET ASSETS

$

95,896,628

$150,664,405

$323,217,306

$

549,842,096

Investor Class

$

55,021,460

N/A

$256,726,785

$

519,826,973

Advisor Class

16,773,465

N/A

14,450,569

15,144,488

A-Class

4,173,656

$

8,154,604

27,207,740

4,383,408

C-Class

19,928,047

6,553,267

24,832,212

10,487,227

H-Class

N/A

135,956,534

N/A

N/A

SHARES OUTSTANDING

Investor Class

2,558,044

N/A

5,846,938

49,138,044

Advisor Class

826,098

N/A

349,992

1,508,551

A-Class

203,173

353,613

653,617

431,706

C-Class

1,007,828

289,479

614,360

1,074,213

H-Class

N/A

5,901,234

N/A

N/A

NET ASSET VALUES

Investor Class

$21.51

N/A

$43.91

$10.58

Advisor Class

20.30

N/A

41.29

10.04

A-Class

20.54

$23.06

41.63

10.15

A-Class Maximum Offering Price*

21.56

24.21

43.71

10.66

C-Class

19.77

22.64

40.42

9.76

H-Class

N/A

23.04

N/A

N/A

Cost of Investments

$

83,220,590

$149,374,599

$311,195,817

$

390,261,545

Proceeds from Short Sales

—

—

—

—

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

108

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

September 30, 2008

Inverse

Inverse

Inverse

Government

Inverse

NASDAQ-100^®

Mid-Cap

Mid-Cap

Russell 2000^®

Russell 2000^®

Long Bond

Government

Strategy

1.5x Strategy

Strategy

1.5x Strategy

Russell 2000^®

Strategy

1.2x Strategy

Long Bond

Fund

Fund

Fund

Fund

Fund

Fund

Fund

Strategy Fund

$

—

$14,885,548

$

—

$ 18,127,464

$16,396,645

$

—

$ 48,432,031

$373,102,027

67,175,468

1,758,868

3,732,213

7,570,568

24,868,133

39,944,801

2,040,078

81,214,969

67,175,468

16,644,416

3,732,213

25,698,032

41,264,778

39,944,801

50,472,109

454,316,996

6,090,091

480,001

3,200

709,800

974,400

1,488,804

417,500

15,324,148

—

—

—

—

101,100

—

—

—

—

—

—

—

—

1,412

—

—

24,101

—

559,674

—

—

1,246,002

—

—

—

408,014

—

575,411

1,967,127

—

—

14,030,001

—

—

—

63,911

20,834

—

—

—

1,109,765

261,445

802,964

39,327

121,505

75,435

1,717,861

2,938,178

250

16,478

—

20,964

6,555

154

798,880

303

74,399,675

17,810,354

5,098,051

27,107,445

44,456,299

42,756,608

53,406,350

486,609,626

—

—

—

—

—

1,584

—

—

—

83,514

—

816,044

408,984

—

—

—

4,036,527

—

2,346

—

—

1,087,348

553,188

—

—

20,776

—

221,094

3,879

—

—

—

—

—

—

—

10,154,964

—

1,534,538

—

1,030,369

135,016

38,101

149,496

1,131

195,831

565,682

3,530,865

47,395

13,983

4,225

22,294

23,383

30,646

28,453

333,794

13,165

3,884

1,174

6,193

7,794

8,513

11,381

92,721

5,934

8,915

1,813

13,697

8,382

12,646

17,647

125,886

5,266

1,554

469

2,477

3,118

3,405

5,691

32,776

1,580

466

141

743

935

1,022

1,876

11,127

—

—

—

—

—

5,790

—

—

—

—

—

—

—

—

223

—

37,856

13,572

5,121

16,965

10,218

23,088

31,440

234,069

5,178,092

281,680

53,390

1,249,003

10,622,788

1,369,873

2,750,119

4,361,238

$

69,221,583

$17,528,674

$

5,044,661

$ 25,858,442

$33,833,511

$41,386,735

$ 50,656,231

$482,248,388

$190,624,450

$27,676,214

$11,241,939

$ 37,198,474

$36,099,831

$74,457,177

$ 55,896,078

$764,837,429

833,423

(16,350)

43,243

(21,616)

8,431

225,254

183,622

(3,080,086)

(125,953,106)

(8,661,215)

(6,237,559)

(10,834,106)

(1,414,511)

(33,878,743)

(6,841,515)

(289,994,798)

3,716,816

(1,469,975)

(2,962)

(484,310)

(860,240)

583,047

1,418,046

10,485,843

$

69,221,583

$17,528,674

$

5,044,661

$ 25,858,442

$33,833,511

$41,386,735

$ 50,656,231

$482,248,388

$

59,521,099

N/A

N/A

N/A

N/A

N/A

$ 19,590,579

$253,040,072

932,494

N/A

N/A

N/A

N/A

N/A

11,267,005

36,120,548

3,352,822

$

1,082,478

$

732,942

$

1,588,018

$

3,895,304

$

2,885,824

13,613,573

60,453,105

5,415,168

7,213,767

771,759

11,269,958

908,271

7,278,670

6,185,074

132,634,663

N/A

9,232,429

3,539,960

13,000,466

29,029,936

31,222,241

N/A

N/A

2,598,336

N/A

N/A

N/A

N/A

N/A

1,670,994

15,048,488

41,800

N/A

N/A

N/A

N/A

N/A

965,323

2,204,017

148,638

38,289

18,566

58,234

168,143

76,803

1,159,915

3,652,028

257,352

269,966

20,312

438,169

39,847

200,812

528,204

8,515,852

N/A

326,406

89,707

476,855

1,252,833

830,416

N/A

N/A

$22.91

N/A

N/A

N/A

N/A

N/A

$11.72

$16.81

22.31

N/A

N/A

N/A

N/A

N/A

11.67

16.39

22.56

$28.27

$39.48

$27.27

$23.17

$37.57

11.74

16.55

23.69

29.68

41.45

28.63

24.33

39.44

12.33

17.38

21.04

26.72

37.99

25.72

22.79

36.25

11.71

15.58

N/A

28.29

39.46

27.26

23.17

37.60

N/A

N/A

$

67,175,468

$17,346,856

$

3,732,213

$ 25,629,896

$41,707,109

$39,944,801

$ 49,039,745

$454,372,848

—

—

—

—

—

1,412

—

—

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

109

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (concluded)

Inverse

High Yield

High Yield

Europe

Japan

Strategy

Strategy

1.25x Strategy

2x Strategy

Fund

Fund

Fund

Fund

ASSETS

Investment Securities

$

—

$

—

$

8,576,373

$

—

Repurchase Agreements

21,972,507

15,841,036

5,929,776

428,485

Total Investments

21,972,507

15,841,036

14,506,149

428,485

Unrealized Appreciation on Swap

—

599,354

—

—

Unamortized Upfront Premiums Received

—

1,139,708

—

—

Segregated Cash with Broker

193,600

169,600

1,806,421

1,844,559

Cash

—

—

1,531

—

Receivable for Credit Default Swap Settlement

25,000

—

—

—

Receivable for Swap Units Sold

—

—

24,288

29,483

Variation Margin on Futures Contracts

—

92,087

125,273

174,141

Receivable for Securities Sold

—

—

301,658

—

Receivable for Fund Shares Sold

25,495

607,683

593,046

614,176

Investment Income Receivable

117

—

50,236

—

Receivable from Advisor

—

—

—

17,395

Other Assets

—

—

—

—

Total Assets

22,216,719

18,449,468

17,408,602

3,108,239

LIABILITIES

Payable for Credit Default Swap Settlement

—

21,875

—

—

Unamortized Upfront Premiums Paid

1,522,629

—

—

—

Unrealized Depreciation on Swap

464,871

—

—

—

Variation Margin on Futures Contracts

189,819

—

—

—

Payable upon Return of Securities Loaned

—

—

305,120

—

Payable for Fund Shares Redeemed

76,410

242,571

1,980,525

292,884

Investment Advisory Fees Payable

29,134

8,561

12,210

1,753

Transfer Agent and Administrative Fees Payable

9,711

2,854

3,392

584

Distribution and Service Fees Payable

10,084

4,520

5,408

768

Portfolio Accounting Fees Payable

3,884

1,142

1,357

234

Custody Fees Payable

1,165

342

407

70

Dividends Payable

—

—

—

—

Other Liabilities

23,745

8,335

16,535

1,783

Total Liabilities

2,331,452

290,200

2,324,954

298,076

NET ASSETS

$19,885,267

$18,159,268

$15,083,648

$ 2,810,163

NET ASSETS CONSIST OF

Paid-In Capital

$24,765,962

$17,268,079

$25,350,016

$ 4,239,136

Undistributed Net Investment Income (Loss)

584,003

18,428

(2,401,758)

10,764

Accumulated Net Realized Gain (Loss) on Investments

(5,033,911)

226,226

(8,182,941)

(1,317,814)

Net Unrealized Appreciation (Depreciation) on Investments

(430,787)

646,535

318,331

(121,923)

NET ASSETS

$19,885,267

$18,159,268

$15,083,648

$ 2,810,163

Investor Class

N/A

N/A

N/A

N/A

Advisor Class

N/A

N/A

N/A

N/A

A-Class

$

8,432,860

$

1,685,235

$

889,402

$

127,164

C-Class

666,781

2,973,973

3,097,553

255,697

H-Class

10,785,626

13,500,060

11,096,693

2,427,302

SHARES OUTSTANDING

Investor Class

N/A

N/A

N/A

N/A

Advisor Class

N/A

N/A

N/A

N/A

A-Class

348,971

32,562

52,656

6,990

C-Class

27,918

57,894

195,082

14,106

H-Class

447,234

260,175

656,720

133,432

NET ASSET VALUES

Investor Class

N/A

N/A

N/A

N/A

Advisor Class

N/A

N/A

N/A

N/A

A-Class

$24.16

$51.75

$16.89

$18.19

A-Class Maximum Offering Price*

25.36

54.33

17.73

19.10

C-Class

23.88

51.37

15.88

18.13

H-Class

24.12

51.89

16.90

18.19

Cost of Investments

$21,972,507

$15,841,036

$14,079,231

$

428,485

* Net asset value adjusted for the maximum sales charge of 4.75% of offering price, calculated NAV/(1-4.75%).

110

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

September 30, 2008

U.S.

Small-Cap

Mid-Cap

Large-Cap

Small-Cap

Mid-Cap

Large-Cap

Government

Value

Value

Value

Growth

Growth

Growth

Money Market

Fund

Fund

Fund

Fund

Fund

Fund

Fund

$ 34,859,588

$

7,449,133

$14,607,496

$ 20,398,817

$ 14,760,251

$ 12,154,096

$1,249,970,756

331,832

35,911

263,750

221,384

122,607

83,924

319,929,387

35,191,420

7,485,044

14,871,246

20,620,201

14,882,858

12,238,020

1,569,900,143

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

2,113

—

—

—

—

—

9,008,975

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

527,023

52,443

296,832

387,524

—

372,290

—

4,400

15,430

23,442

521,832

19,223

5,290

62,819,485

48,535

11,158

64,313

5,463

4,769

7,791

603,718

—

—

—

—

—

—

—

—

—

—

—

—

—

1,572

35,773,491

7,564,075

15,255,833

21,535,020

14,906,850

12,623,391

1,642,333,893

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

1,516,971

182,767

80,059

480,527

—

8,704

—

867,060

24,067

755,754

1,300,712

197,958

558,197

168,103,108

17,237

5,013

13,848

10,639

12,710

8,234

536,384

5,746

1,671

4,616

3,546

4,237

2,745

214,554

12,949

2,330

5,890

4,284

6,114

5,048

177,564

2,298

668

1,846

1,419

1,695

1,098

58,998

704

201

573

476

776

514

34,176

—

—

—

—

—

—

30,041

7,198

5,319

11,373

6,836

18,022

14,296

623,863

2,430,163

222,036

873,959

1,808,439

241,512

598,836

169,778,688

$ 33,343,328

$

7,342,039

$14,381,874

$ 19,726,581

$ 14,665,338

$ 12,024,555

$1,472,555,205

$ 46,217,206

$10,296,476

$19,922,938

$ 24,615,751

$ 23,204,294

$ 21,524,791

$1,472,746,515

169,247

81,018

489,454

(49,935)

(203,457)

(85,619)

(20,987)

(13,341,283)

(3,741,616)

(7,018,226)

(5,440,189)

(10,015,998)

(10,379,552)

(170,323)

298,158

706,161

987,708

600,954

1,680,499

964,935

—

$ 33,343,328

$

7,342,039

$14,381,874

$ 19,726,581

$ 14,665,338

$ 12,024,555

$1,472,555,205

N/A

N/A

N/A

N/A

N/A

N/A

$1,118,020,463

N/A

N/A

N/A

N/A

N/A

N/A

178,219,792

$

232,107

$

594,771

$

245,640

$

225,675

$

4,841,745

$

1,685,968

34,253,308

11,748,234

1,066,662

1,644,791

1,759,366

2,195,859

2,759,114

142,061,642

21,362,987

5,680,606

12,491,443

17,741,540

7,627,734

7,579,473

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1,118,481,227

N/A

N/A

N/A

N/A

N/A

N/A

178,481,262

9,389

21,609

14,574

8,300

191,512

76,064

34,239,728

492,895

40,178

102,050

66,897

90,038

128,833

142,079,421

865,341

206,390

740,691

652,110

301,404

342,002

N/A

N/A

N/A

N/A

N/A

N/A

N/A

$1.00

N/A

N/A

N/A

N/A

N/A

N/A

1.00

$24.72

$27.52

$16.85

$27.19

$25.28

$22.17

1.00

25.95

28.89

17.69

28.55

26.54

23.28

1.00

23.84

26.55

16.12

26.30

24.39

21.42

1.00

24.69

27.52

16.86

27.21

25.31

22.16

N/A

$ 34,893,262

$

6,778,883

$13,883,538

$ 20,019,247

$ 13,202,359

$ 11,273,085

$1,569,900,143

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

111

STATEMENTS OF OPERATIONS (Unaudited)

Inverse

S&P 500

Nova

S&P 500

Strategy

NASDAQ-100^®

Fund

Fund

Fund

Fund

INVESTMENT INCOME

Interest

$

224,341

$

293,869

$

3,074,059

$

213,500

Income from Securities Lending, net

43,252

17,411

—

415,932

Dividends, Net of Foreign Tax Withheld

1,142,564

579,083

—

1,557,593

Total Income

1,410,157

890,363

3,074,059

2,187,025

EXPENSES

Investment Advisory Fees

492,743

322,497

1,244,615

2,587,809

Transfer Agent and Administrative Fees

164,248

107,499

345,726

862,603

Distribution & Service Fees:

Advisor Class

53,509

—

34,177

48,655

A-Class

10,850

5,175

20,689

5,888

C-Class

136,368

53,434

120,247

69,179

H-Class

—

88,965

—

—

Audit and Outside Service Fees

23,368

7,512

40,858

90,271

Portfolio Accounting Fees

65,699

43,000

134,558

266,427

Registration Fees

45,111

12,687

79,076

276,526

Short Sales Interest Expense

—

—

—

—

Short Sales Dividend Expense

—

—

—

—

Trustees’ Fees*

7,523

2,903

14,095

32,979

Custody Fees

18,416

11,812

36,310

90,604

Miscellaneous

25,496

40,281

75,032

223,991

Total Expenses

1,043,331

695,765

2,145,383

4,554,932

Net Investment Income (Loss)

366,826

194,598

928,676

(2,367,907)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

Net Realized Gain (Loss) on:

Investment Securities

(2,107,136)

(3,530,572)

—

(2,800,992)

Equity Index Swaps

(2,226,983)

(2,885,001)

15,574,458

(454,560)

Futures Contracts

(3,828,124)

1,366,378

(1,994,171)

(2,598,383)

Securities Sold Short

—

—

—

—

Total Net Realized Gain (Loss)

(8,162,243)

(5,049,195)

13,580,287

(5,853,935)

Net Change in Unrealized Appreciation (Depreciation) on:

Investment Securities

(9,513,383)

(5,715,867)

—

(56,704,116)

Equity Index Swaps

(156,965)

(2,172)

901,991

(126,350)

Futures Contracts

(1,655,123)

(1,759,801)

9,417,337

(695,332)

Securities Sold Short

—

—

—

—

Net Change in Unrealized Appreciation (Depreciation)

(11,325,471)

(7,477,840)

10,319,328

(57,525,798)

Net Gain (Loss) on Investments

(19,487,714)

(12,527,035)

23,899,615

(63,379,733)

Net Increase (Decrease) in Net Assets from Operations

$(19,120,888) $(12,332,437)

-->

$(19,120,888)

$(12,332,437)

$24,828,291

$(65,747,640)

Foreign Tax Withheld

$

—

$

—

$

—

$

28,322

* Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

112

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

Period Ended September 30, 2008

Inverse

Inverse

Inverse

Government

Inverse

NASDAQ-100^®

Mid-Cap

Mid-Cap

Russell 2000^®

Russell 2000^®

Long Bond

Government

Strategy

1.5x Strategy

Strategy

1.5x Strategy

Russell 2000^®

Strategy

1.2x Strategy

Long Bond

Fund

Fund

Fund

Fund

Fund

Fund

Fund

Strategy Fund

$

629,344

$

111,808

$

116,033

$

113,490

$

100,063

$

621,861

$ 1,357,980

$

7,892,117

—

11,322

—

27,342

3,866

—

—

—

—

127,758

—

178,503

27,338

—

—

—

629,344

250,888

116,033

319,335

131,267

621,861

1,357,980

7,892,117

277,199

125,501

50,564

157,062

58,261

209,299

155,981

2,288,201

77,000

34,861

14,046

43,628

19,420

58,139

62,392

635,612

6,366

—

—

—

—

—

43,750

82,673

2,638

1,902

837

5,022

2,114

6,140

18,717

74,920

33,957

46,202

6,247

60,505

3,934

31,389

33,810

685,026

—

21,408

11,646

23,480

16,323

44,151

—

—

11,285

5,406

2,848

5,524

665

7,917

11,709

63,384

30,800

13,945

5,618

17,451

7,768

23,255

31,196

219,537

29,688

8,665

3,699

13,362

3,317

18,292

18,156

100,582

—

—

—

—

—

—

—

6,560,648

—

—

—

—

—

122,588

—

—

3,595

1,684

850

1,814

288

2,640

3,541

24,061

8,046

3,626

1,454

4,562

2,135

6,049

8,534

66,522

10,954

4,038

610

8,541

8,611

10,027

10,690

171,037

491,528

267,238

98,419

340,951

122,836

539,886

398,476

10,972,203

137,816

(16,350)

17,614

(21,616)

8,431

81,975

959,504

(3,080,086)

—

(372,170)

—

(743,300)

(194,259)

—

(23,537)

(41,459)

250

(493,084)

(876,938)

(930,471)

616,588

(1,625,506)

—

—

(1,061,589)

101,554

564,537

468,974

(1,163,999)

(1,053,343)

369,561

(19,622,245)

—

—

—

—

—

394,609

—

(11,633,154)

(1,061,339)

(763,700)

(312,401)

(1,204,797)

(741,670)

(2,284,240)

346,024

(31,296,858)

—

(1,015,365)

—

59,798

(460,219)

—

(2,306,535)

(44,995)

1,098,348

19,836

(1,158,618)

91,106

(12,486)

151,107

—

—

3,748,233

(962,719)

4,303

(797,460)

(434,624)

620,664

(845,208)

15,527,378

—

—

—

—

—

(1,780,527)

—

13,734,403

4,846,581

(1,958,248)

(1,154,315)

(646,556)

(907,329)

(1,008,756)

(3,151,743)

29,216,786

3,785,242

(2,721,948)

(1,466,716)

(1,851,353)

(1,648,999)

(3,292,996)

(2,805,719)

(2,080,072)

$ 3,923,058

$(2,738,298)

$(1,449,102)

$(1,872,969)

$(1,640,568)

$(3,211,021)

$(1,846,215)

$

(5,160,158)

$

—

$

—

$

—

$

75

$

11

$

—

$

—

$

—

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

113

STATEMENTS OF OPERATIONS (Unaudited) (concluded)

Inverse

High Yield

High Yield

Europe

Japan

Strategy

Strategy

1.25x Strategy

2x Strategy

Fund

Fund

Fund

Fund

INVESTMENT INCOME

Interest

$

808,662

$160,275

$

138,441

$

48,724

Income from Securities Lending, net

—

—

8,423

—

Dividends, Net of Foreign Tax Withheld

—

—

299,288

—

Total Income

808,662

160,275

446,152

48,724

EXPENSES

Investment Advisory Fees

288,428

64,598

118,895

18,547

Transfer Agent and Administrative Fees

96,143

21,533

33,026

6,182

Distribution & Service Fees:

Advisor Class

—

—

—

—

A-Class

31,018

2,180

1,799

824

C-Class

4,671

14,778

26,776

2,903

H-Class

63,957

15,658

24,533

4,633

Audit and Outside Service Fees

8,390

2,107

7,337

346

Portfolio Accounting Fees

38,457

8,613

13,211

2,473

Registration Fees

9,704

3,935

14,700

430

Trustees’ Fees*

2,800

988

2,070

186

Custody Fees

10,127

2,233

3,416

640

Miscellaneous

55,004

5,224

(1,478)

2,548

Total Expenses

608,699

141,847

244,285

39,712

Net Investment Income (Loss)

199,963

18,428

201,867

9,012

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

Net Realized Gain (Loss) on:

Investment Securities

—

—

81,629

—

Credit Default/Equity Index Swaps

(1,508,824)

279,991

(2,480,648)

(437,992)

Futures Contracts

(535,025)

478,810

(549,022)

(611,489)

Net Increase from Payments by Affiliates

—

—

—

17,395

Total Net Realized Gain (Loss)

(2,043,849)

758,801

(2,948,041)

(1,032,086)

Net Change in Unrealized Appreciation (Depreciation) on:

Investment Securities

—

—

(2,142,805)

—

Credit Default/Equity Index Swaps

147,302

(60,143)

(48,170)

(54,558)

Futures Contracts

(283,679)

121,300

(243,075)

(299,522)

Net Change in Unrealized Appreciation (Depreciation)

(136,377)

61,157

(2,434,050)

(354,080)

Net Gain (Loss) on Investments

(2,180,226)

819,958

(5,382,091)

(1,386,166)

Net Increase (Decrease) in Net Assets from Operations

$(1,980,263)

$838,386

$(5,180,224)

$(1,377,154)

Foreign Tax Withheld

$

—

$

—

$

44,895

$

—

*Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.

114

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

Period Ended September 30, 2008

U.S.

Small-Cap

Mid-Cap

Large-Cap

Small-Cap

Mid-Cap

Large-Cap

Government

Value

Value

Value

Growth

Growth

Growth

Money Market

Fund

Fund

Fund

Fund

Fund

Fund

Fund

$

1,299

$

471

$

982

$

957

$

3,455

$

1,704

$14,974,461

30,683

13,882

20,621

24,463

39,260

19,960

11,336

189,217

157,574

298,755

33,412

64,765

130,318

—

221,199

171,927

320,358

58,832

107,480

151,982

14,985,797

63,204

39,545

62,433

46,681

139,560

108,956

3,198,814

21,068

13,182

20,811

15,560

46,520

36,319

1,279,525

—

—

—

—

—

—

405,600

2,013

1,816

3,647

1,337

4,182

8,135

33,052

21,282

14,425

10,490

16,368

30,012

22,251

607,001

13,734

7,759

14,541

10,131

34,835

22,620

—

2,424

2,619

6,721

1,805

4,339

6,549

187,637

8,427

5,273

8,325

6,224

18,608

14,527

361,142

2,827

4,137

9,782

2,972

7,252

10,563

295,645

688

702

1,731

575

1,749

2,038

65,062

2,546

1,415

2,263

1,722

5,157

4,071

172,626

5,929

36

(6,518)

5,392

18,723

1,572

353,664

144,142

90,909

134,226

108,767

310,937

237,601

6,959,768

77,057

81,018

186,132

(49,935)

(203,457)

(85,619)

8,026,029

(4,964,950)

(704,269)

(3,089,600)

(713,660)

(2,352,566)

(1,279,771)

(39,306)

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

(4,964,950)

(704,269)

(3,089,600)

(713,660)

(2,352,566)

(1,279,771)

(39,306)

1,330,705

219,706

(1,161,016)

(123,994)

(535,272)

(1,499,090)

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

1,330,705

219,706

(1,161,016)

(123,994)

(535,272)

(1,499,090)

—

(3,634,245)

(484,563)

(4,250,616)

(837,654)

(2,887,838)

(2,778,861)

(39,306)

$(3,557,188)

$(403,545)

$(4,064,484)

$(887,589)

$(3,091,295)

$(2,864,480)

$

7,986,723

$

295

$

—

$

—

$

—

$

—

$

—

$

—

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

115

STATEMENTS OF CHANGES IN NET ASSETS

Nova Fund

S&P 500 Fund

Period

Year

Period

Year

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

FROM OPERATIONS

Net Investment Income (Loss)

$

366,826

$

1,814,491

$

194,598

$

390,281

Net Realized Gain (Loss) on Investments

(8,162,243)

(9,551,255)

(5,049,195)

(4,633,846)

Net Change in Unrealized Appreciation (Depreciation) on Investments

(11,325,471)

(18,422,080)

(7,477,840)

949,099

Net Increase (Decrease) in Net Assets from Operations

(19,120,888)

(26,158,844)

(12,332,437)

(3,294,466)

Distributions to Shareholders from:

Net Investment Income

Investor Class

—

(2,576,835)

—

—

Advisor Class

—

(587,393)

—

—

A-Class

—

(263,460)

—

(5,509)

C-Class

—

(872,315)

—

(22,779)

H-Class

—

—

—

(121,712)

Realized Gain on Investments

A-Class

—

—

—

—

C-Class

—

—

—

—

H-Class

—

—

—

—

Total Distributions to Shareholders

—

(4,300,003)

—

(150,000)

SHARE TRANSACTIONS

Proceeds from Shares Purchased

Investor Class

138,413,663

341,259,500

—

—

Advisor Class

25,220,935

68,277,906

—

—

A-Class

6,401,650

14,230,806

12,924,482

19,984,413

C-Class

8,609,410

35,778,708

72,127,194

100,930,691

H-Class

—

—

343,301,874

243,409,668

Value of Shares Purchased through Dividend Reinvestment

Investor Class

—

2,412,637

—

—

Advisor Class

—

502,879

—

—

A-Class

—

215,508

—

3,583

C-Class

—

815,962

—

22,414

H-Class

—

—

—

121,524

Cost of Shares Redeemed

Investor Class

(147,499,788)

(362,877,907)

—

—

Advisor Class

(24,564,017)

(83,015,389)

—

—

A-Class

(13,126,820)

(16,109,773)

(6,484,678)

(19,732,723)

C-Class

(13,835,974)

(43,779,722)

(72,253,568)

(94,416,991)

H-Class

—

—

(275,775,418)

(168,129,248)

Net Increase (Decrease) in Net Assets From Share Transactions

(20,380,941)

(42,288,885)

73,839,886

82,193,331

Net Increase (Decrease) in Net Assets

(39,501,829)

(72,747,732)

61,507,449

78,748,865

NET ASSETS—BEGINNING OF PERIOD

135,398,457

208,146,189

89,156,956

10,408,091

NET ASSETS—END OF PERIOD

$

95,896,628

$ 135,398,457

$ 150,664,405

$

89,156,956

Undistributed Net Investment Income (Loss)—End of Period

$

798,828

$

432,002

$

197,157

$

2,559

† Unaudited

116

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

Inverse

Inverse

Mid-Cap

S&P 500 Strategy Fund

NASDAQ-100^® Fund

NASDAQ-100^® Strategy Fund

1.5x Strategy Fund

Period

Year

Period

Year

Period

Year

Period

Year

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

2008†

2008

2008†

2008

$

928,676

$

9,239,729

$

(2,367,907)

$

(3,871,579)

$

137,816

$

2,739,850

$

(16,350)

$

184,928

13,580,287

8,497,642

(5,853,935)

37,550,926

(1,061,339)

(8,791,690)

(763,700)

(4,634,390)

10,319,328

5,979,963

(57,525,798)

(35,808,024)

4,846,581

1,330,389

(1,958,248)

(4,432,221)

24,828,291

23,717,334

(65,747,640)

(2,128,677)

3,923,058

(4,721,451)

(2,738,298)

(8,881,683)

—

(10,150,499)

—

—

—

(2,469,997)

—

—

—

(544,365)

—

—

—

(93,712)

—

—

—

(417,734)

—

—

—

(220,499)

—

(13,285)

—

(1,287,404)

—

—

—

(365,790)

—

(81,268)

—

—

—

—

—

—

—

(155,448)

—

—

—

—

—

—

—

(86,908)

—

—

—

—

—

—

—

(531,658)

—

—

—

—

—

—

—

(1,016,946)

—

(12,400,002)

—

—

—

(3,149,998)

—

(1,885,513)

299,537,350

415,012,456

302,843,741

555,891,864

91,020,735

266,757,622

—

—

37,024,669

48,201,826

67,257,199

139,974,270

1,287,422

11,607,871

—

—

27,996,150

23,979,245

6,420,741

15,782,415

3,428,373

9,715,769

587,962

4,937,608

31,067,365

107,600,065

66,826,892

93,532,178

23,496,615

37,796,095

13,047,178

19,972,516

—

—

—

—

—

—

98,068,145

338,407,973

—

9,133,319

—

—

—

2,169,008

—

—

—

457,021

—

—

—

78,193

—

—

—

354,871

—

—

—

145,081

—

89,731

—

1,125,213

—

—

—

345,264

—

579,143

—

—

—

—

—

—

—

1,101,301

(285,031,784)

(504,104,091)

(338,516,143)

(573,819,417)

(94,776,531)

(308,127,363)

—

—

(35,444,193)

(60,172,882)

(65,727,187)

(132,669,492)

(4,027,789)

(18,768,096)

—

—

(11,972,027)

(26,601,648)

(7,789,458)

(13,135,349)

(2,130,391)

(11,615,256)

(955,875)

(5,770,358)

(40,607,344)

(120,326,325)

(65,220,370)

(92,744,657)

(25,979,353)

(47,225,030)

(12,997,913)

(26,383,646)

—

—

—

—

—

—

(99,204,441)

(345,280,940)

22,570,186

(105,340,930)

(33,904,585)

(7,188,188)

(7,680,919)

(57,120,842)

(1,454,944)

(12,346,672)

47,398,477

(94,023,598)

(99,652,225)

(9,316,865)

(3,757,861)

(64,992,291)

(4,193,242)

(23,113,868)

275,818,829

369,842,427

649,494,321

658,811,186

72,979,444

137,971,735

21,721,916

44,835,784

$ 323,217,306

$ 275,818,829

$ 549,842,096

$ 649,494,321

$ 69,221,583

$

72,979,444

$ 17,528,674

$

21,721,916

$

4,917,755

$

3,989,079

$

(2,367,907)

$

—

$

833,423

$

695,607

$

(16,350)

$

—

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

117

STATEMENTS OF CHANGES IN NET ASSETS (continued)

Inverse

Russell 2000^®

Mid-Cap Strategy Fund

1.5x Strategy Fund

Period

Year

Period

Year

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

FROM OPERATIONS

Net Investment Income (Loss)

$

17,614

$

379,675

$

(21,616)

$

328,224

Net Realized Gain (Loss) on Investments

(312,401)

264,155

(1,204,797)

(6,256,309)

Net Change in Unrealized Appreciation (Depreciation) on Investments

(1,154,315)

1,132,496

(646,556)

(7,678,425)

Net Increase (Decrease) in Net Assets from Operations

(1,449,102)

1,776,326

(1,872,969)

(13,606,510)

Distributions to Shareholders from:

Net Investment Income

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

—

(14,414)

—

(11,847)

C-Class

—

(12,714)

—

(39,861)

H-Class

—

(392,699)

—

(53,601)

Total Distributions to Shareholders

—

(419,827)

—

(105,309)

SHARE TRANSACTIONS

Proceeds from Shares Purchased

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

656,297

1,473,841

3,281,717

5,608,927

C-Class

3,839,155

19,784,055

9,487,297

27,002,919

H-Class

32,071,528

100,782,437

88,823,268

243,835,904

Value of Shares Purchased through Dividend Reinvestment

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

—

10,623

—

11,014

C-Class

—

11,651

—

35,684

H-Class

—

377,291

—

50,275

Cost of Shares Redeemed

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

(856,875)

(1,125,508)

(6,130,340)

(5,958,829)

C-Class

(4,590,317)

(19,223,442)

(8,378,166)

(31,943,301)

H-Class

(73,639,472)

(71,243,410)

(88,435,878)

(264,626,266)

Net Increase (Decrease) in Net Assets From Share Transactions

(42,519,684)

30,847,538

(1,352,102)

(25,983,673)

Net Increase (Decrease) in Net Assets

(43,968,786)

32,204,037

(3,225,071)

(39,695,492)

NET ASSETS—BEGINNING OF PERIOD

49,013,447

16,809,410

29,083,513

68,779,005

NET ASSETS—END OF PERIOD

$

5,044,661

$

49,013,447

$ 25,858,442

$

29,083,513

Undistributed Net Investment Income (Loss)—End of Period

$

43,243

$

25,629

$

(21,616)

$

—

† Unaudited

118

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

Russell 2000^®

Inverse

Government Long Bond

Inverse Government

Fund

Russell 2000^® Strategy Fund

1.2x Strategy Fund

Long Bond Strategy Fund

Period

Year

Period

Year

Period

Year

Period

Year

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

2008†

2008

2008†

2008

$

8,431

$

130,395

$

81,975

$

1,842,934

$

959,504

$

2,568,216

$

(3,080,086)

$

10,945,020

(741,670)

(214,609)

(2,284,240)

4,123,664

346,024

(1,773,685)

(31,296,858)

(28,527,890)

(907,329)

(361,722)

(1,008,756)

1,287,153

(3,151,743)

5,317,858

29,216,786

(24,199,216)

(1,640,568)

(445,936)

(3,211,021)

7,253,751

(1,846,215)

6,112,389

(5,160,158)

(41,782,086)

—

—

—

—

(390,897)

(1,420,257)

—

(8,268,999)

—

—

—

—

(251,631)

(415,210)

—

(1,048,257)

—

(3,218)

—

(262,498)

(236,215)

(478,407)

—

(1,181,600)

—

(6,072)

—

(314,182)

(80,761)

(254,342)

—

(5,301,155)

—

(24,871)

—

(1,673,321)

—

—

—

—

—

(34,161)

—

(2,250,001)

(959,504)

(2,568,216)

—

(15,800,011)

—

—

—

—

418,807,503

824,506,330

613,529,985

1,047,079,062

—

—

—

—

358,611,783

180,695,157

374,222,991

151,234,508

5,044,208

6,689,164

1,341,361

15,262,274

10,176,669

27,478,043

49,383,998

27,820,957

5,367,525

11,788,819

16,963,008

29,493,508

79,110,951

79,769,479

50,828,713

57,936,431

193,754,218

112,455,644

77,366,306

226,253,216

—

—

—

—

—

—

—

—

371,617

1,291,988

—

5,921,254

—

—

—

—

249,547

411,265

—

873,772

—

3,055

—

245,925

213,057

372,582

—

1,052,303

—

4,822

—

264,680

77,803

221,778

—

4,607,055

—

24,724

—

1,475,890

—

—

—

—

—

—

—

—

(429,210,810)

(837,686,520)

(596,271,937)

(1,097,133,564)

—

—

—

—

(371,398,155)

(166,581,027)

(362,661,749)

(167,400,041)

(1,814,522)

(6,005,450)

(4,896,261)

(19,266,022)

(16,469,588)

(20,498,724)

(24,923,722)

(58,850,467)

(5,150,878)

(11,713,559)

(15,454,939)

(32,705,884)

(79,567,570)

(89,766,321)

(41,319,899)

(130,620,082)

(167,639,814)

(121,115,706)

(86,227,267)

(237,600,325)

—

—

—

—

29,560,737

(7,868,487)

(10,907,792)

(16,576,738)

(29,027,193)

214,030

62,788,380

(157,478,812)

27,920,169

(8,348,584)

(14,118,813)

(11,572,988)

(31,832,912)

3,758,203

57,628,222

(215,060,909)

5,913,342

14,261,926

55,505,548

67,078,536

82,489,143

78,730,940

424,620,166

639,681,075

$

33,833,511

$

5,913,342

$ 41,386,735

$

55,505,548

$

50,656,231

$

82,489,143

$ 482,248,388

$

424,620,166

$

8,431

$

—

$

225,254

$

143,279

$

183,622

$

183,622

$

(3,080,086)

$

—

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

119

STATEMENTS OF CHANGES IN NET ASSETS (continued)

High Yield

Inverse High Yield

Strategy Fund

Strategy Fund

Period

Year

Period

Year

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

2008†

2008*

2008†

2008*

FROM OPERATIONS

Net Investment Income

$

199,963

$

597,094

$

18,428

$

327,727

Net Realized Gain (Loss) on Investments

(2,043,849)

(2,022,664)

758,801

(1,151,097)

Net Change in Unrealized Appreciation (Depreciation) on Investments

(136,377)

(294,410)

61,157

585,378

Net Increase (Decrease) in Net Assets from Operations

(1,980,263)

(1,719,980)

838,386

(237,992)

Distributions to Shareholders from:

Net Investment Income

A-Class

—

(94,059)

—

—

C-Class

—

(3,119)

—

—

H-Class

—

(252,822)

—

—

Realized Gain on Investments

A-Class

—

—

—

—

C-Class

—

—

—

—

H-Class

—

—

—

—

Total Distributions to Shareholders

—

(350,000)

—

—

SHARE TRANSACTIONS

Proceeds from Shares Purchased

A-Class

159,284,004

49,111,859

4,034,411

18,335,302

C-Class

2,167,740

4,241,692

1,470,752

6,037,467

H-Class

291,932,025

298,135,020

135,440,159

159,139,664

Value of Shares Purchased through Dividend Reinvestment

A-Class

—

93,585

—

—

C-Class

—

3,048

—

—

H-Class

—

252,521

—

—

Cost of Shares Redeemed

A-Class

(159,985,023)

(37,905,292)

(4,046,659)

(16,310,916)

C-Class

(2,490,329)

(3,224,690)

(1,467,831)

(3,060,250)

H-Class

(344,864,090)

(232,816,560)

(129,276,267)

(152,736,958)

Net Increase (Decrease) in Net Assets From Share Transactions

(53,955,673)

77,891,183

6,154,565

11,404,309

Net Increase (Decrease) in Net Assets

(55,935,936)

75,821,203

6,992,951

11,166,317

NET ASSETS—BEGINNING OF PERIOD

75,821,203

—

11,166,317

—

NET ASSETS—END OF PERIOD

$

19,885,267

$

75,821,203

$

18,159,268

$

11,166,317

Undistributed Net Investment Income (Loss)—End of Period

$

584,003

$

384,040

$

18,428

$

—

* Since commencement of operations: April 16, 2007 — High Yield Strategy Fund and Inverse High Yield Strategy Fund; February 22, 2008 —

Japan 2x Strategy Fund.

† Unaudited

120

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

Europe

Japan

Small-Cap

Mid-Cap

1.25x Strategy Fund

2x Strategy Fund

Value Fund

Value Fund

Period

Year

Period

Year

Period

Year

Period

Year

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008*

2008†

2008

2008†

2008

$

201,867

$

1,874,122

$

9,012

$

607

$

77,057

$

145,848

$

81,018

$

300,251

(2,948,041)

(583,438)

(1,032,086)

(285,728)

(4,964,950)

(3,529,923)

(704,269)

2,556,717

(2,434,050)

(4,787,080)

(354,080)

232,157

1,330,705

(4,152,139)

219,706

(4,572,641)

(5,180,224)

(3,496,396)

(1,377,154)

(52,964)

(3,557,188)

(7,536,214)

(403,545)

(1,715,673)

—

(27,890)

—

—

—

(18,247)

—

(78,237)

—

(143,919)

—

—

—

(7,413)

—

(41,598)

—

(573,127)

—

—

—

(28,903)

—

(157,115)

—

(84,392)

—

—

—

—

—

—

—

(435,477)

—

—

—

—

—

—

—

(1,734,199)

—

—

—

—

—

—

—

(2,999,004)

—

—

—

(54,563)

—

(276,950)

141,985

12,571,808

272,427

655,392

2,088,309

5,591,744

1,166,390

6,102,704

56,046,222

164,682,136

15,317,417

1,074,730

13,803,783

33,963,980

15,147,594

27,510,830

79,090,094

425,839,427

33,028,957

13,009,228

65,368,129

139,955,762

27,181,359

93,270,475

—

102,592

—

—

—

18,143

—

72,305

—

555,797

—

—

—

7,069

—

39,879

—

2,247,120

—

—

—

28,137

—

152,723

(688,172)

(22,788,995)

(618,042)

(56,585)

(4,500,468)

(5,725,821)

(3,427,380)

(7,404,551)

(58,161,762)

(167,193,672)

(15,153,076)

(829,607)

(15,276,777)

(20,857,249)

(14,630,880)

(34,318,144)

(85,733,554)

(458,269,642)

(34,778,807)

(7,681,753)

(93,130,862)

(93,517,092)

(28,082,491)

(162,625,394)

(9,305,187)

(42,253,429)

(1,931,124)

6,171,405

(31,647,886)

59,464,673

(2,645,408)

(77,199,173)

(14,485,411)

(48,748,829)

(3,308,278)

6,118,441

(35,205,074)

51,873,896

(3,048,953)

(79,191,796)

29,569,059

78,317,888

6,118,441

—

68,548,402

16,674,506

10,390,992

89,582,788

$ 15,083,648

$

29,569,059

$

2,810,163

$

6,118,441

$

33,343,328

$

68,548,402

$

7,342,039

$

10,390,992

$

(2,401,758)

$

(2,603,625)

$

10,764

$

1,752

$

169,247

$

92,190

$

81,018

$

—

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

121

STATEMENTS OF CHANGES IN NET ASSETS (concluded)

Large-Cap

Small-Cap

Value Fund

Growth Fund

Period

Year

Period

Year

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

FROM OPERATIONS

Net Investment Income (Loss)

$

186,132

$

875,220

$

(49,935)

$

(181,870)

Net Realized Gain (Loss) on Investments

(3,089,600)

26,243,034

(713,660)

730,805

Net Change in Unrealized Appreciation (Depreciation) on Investments

(1,161,016)

(23,545,348)

(123,994)

(1,728,062)

Net Increase (Decrease) in Net Assets from Operations

(4,064,484)

3,572,906

(887,589)

(1,179,127)

Distributions to Shareholders from:

Net Investment Income

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

—

(259,465)

—

—

C-Class

—

(384,645)

—

—

H-Class

—

(580,308)

—

—

Realized Gain on Investments

A-Class

—

(765,247)

—

(101,616)

C-Class

—

(1,134,442)

—

(327,448)

H-Class

—

(1,711,515)

—

(222,904)

Total Distributions to Shareholders

—

(4,835,622)

—

(651,968)

SHARE TRANSACTIONS

Proceeds from Shares Purchased

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

2,249,004

8,142,461

886,307

8,648,656

C-Class

10,734,135

56,251,502

33,431,344

71,659,894

H-Class

112,559,295

236,489,451

61,634,135

116,986,235

Value of Shares Purchased through Dividend Reinvestment

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

—

993,745

—

101,611

C-Class

—

1,442,982

—

327,318

H-Class

—

2,241,255

—

222,054

Cost of Shares Redeemed

Investor Class

—

—

—

—

Advisor Class

—

—

—

—

A-Class

(5,624,672)

(8,107,705)

(2,605,569)

(7,810,332)

C-Class

(10,650,074)

(76,358,825)

(33,901,491)

(76,836,624)

H-Class

(115,386,852)

(405,771,580)

(49,007,677)

(128,439,749)

Net Increase (Decrease) in Net Assets From Share Transactions

(6,119,164)

(184,676,714)

10,437,049

(15,140,937)

Net Increase (Decrease) in Net Assets

(10,183,648)

(185,939,430)

9,549,460

(16,972,032)

NET ASSETS—BEGINNING OF PERIOD

24,565,522

210,504,952

10,177,121

27,149,153

NET ASSETS—END OF PERIOD

$

14,381,874

$

24,565,522

$

19,726,581

$

10,177,121

Undistributed Net Investment Income (Loss)—End of Period

$

489,454

$

303,322

$

(49,935)

$

—

† Unaudited

122

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

See Notes to Financial Statements.

Mid-Cap

Large-Cap

U.S. Government

Growth Fund

Growth Fund

Money Market Fund

Period

Year

Period

Year

Period

Year

Ended

Ended

Ended

Ended

Ended

Ended

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

2008†

2008

$

(203,457)

$

(300,551)

$

(85,619)

$

(424,286)

$

8,026,029

$

43,732,402

(2,352,566)

(4,673,720)

(1,279,771)

(4,624,388)

(39,306)

1,840

(535,272)

(149,780)

(1,499,090)

(1,638,431)

—

—

(3,091,295)

(5,124,051)

(2,864,480)

(6,687,105)

7,986,723

43,734,242

—

—

—

—

(6,877,137)

(34,843,919)

—

—

—

—

(741,652)

(5,056,359)

—

—

—

—

(154,236)

(686,982)

—

—

—

—

(253,002)

(3,145,141)

—

—

—

—

—

—

—

(215,956)

—

(61,132)

—

—

—

(147,969)

—

(210,937)

—

—

—

(703,587)

—

(560,509)

—

—

—

(1,067,512)

—

(832,578)

(8,026,027)

(43,732,401)

—

—

—

—

7,501,817,303

16,744,764,573

—

—

—

—

2,381,240,453

3,541,832,288

6,095,176

7,741,318

7,516,057

7,583,898

51,476,753

86,075,767

61,822,064

46,185,102

6,468,171

121,153,557

694,433,277

1,349,987,737

181,478,368

230,118,496

58,250,273

199,536,612

—

—

—

—

—

—

6,816,269

34,409,275

—

—

—

—

740,009

5,026,273

—

214,830

—

60,489

141,762

611,010

—

146,362

—

207,581

247,038

3,040,004

—

698,887

—

545,152

—

—

—

—

—

—

(7,369,166,884)

(16,782,939,167)

—

—

—

—

(2,362,867,612)

(3,591,814,816)

(5,124,801)

(6,349,744)

(10,424,848)

(4,409,453)

(38,553,186)

(84,291,559)

(61,374,336)

(48,784,216)

(7,565,945)

(118,548,255)

(674,037,092)

(1,352,007,025)

(184,586,625)

(220,140,598)

(61,188,879)

(232,280,349)

—

—

(1,690,154)

9,830,437

(6,945,171)

(26,150,768)

192,288,090

(45,305,640)

(4,781,449)

3,638,874

(9,809,651)

(33,670,451)

192,248,786

(45,303,799)

19,446,787

15,807,913

21,834,206

55,504,657

1,280,306,419

1,325,610,218

$

14,665,338

$

19,446,787

$ 12,024,555

$

21,834,206

$ 1,472,555,205

$

1,280,306,419

$

(203,457)

$

—

$

(85,619)

$

—

$

(20,987)

$

(20,989)

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

123

FINANCIAL HIGHLIGHTS

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Combined

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Net

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Net

Income

Investment

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses■

Expenses■

(Loss)

Income (Loss)▲

Rate

omitted)

Nova Fund Investor Class

September 30, 2008D

$26.13

$

.11

$

(4.73)

$ (4.62)

$

—

$

—

$

—

$

(4.62)

$21.51

(17.68)%

1.28%**

1.28%**

0.86%**

—

83%

$

55,021

March 31, 2008

30.92

.40

(4.51)

(4.11)

(.68)

—

(.68)

(4.79)

26.13

(13.71)%

1.27%

1.27%

1.26%

—

115%

74,674

March 31, 2007

28.89

(.15)

4.19

4.04

(2.01)

—

(2.01)

2.03

30.92

13.99%

1.25%

1.25%

1.23%

—

144%

113,195

March 31, 2006

25.96

(.12)

3.90

3.78

(.85)

—

(.85)

2.93

28.89

14.68%

1.35%

1.23%

(0.45)%

0.95%

192%

139,786

March 31, 2005

24.12

(.11)

1.95

1.84

—

—

—

1.84

25.96

7.63%

1.21%

1.21%

(0.44)%

0.82%

388%

175,042

March 31, 2004

15.54

.07

8.51

8.58

—

—

—

8.58

24.12

55.25%

1.25%

1.25%

0.35%

1.16%

540%

187,051

Nova Fund Advisor Class

September 30, 2008D

24.72

.05

(4.47)

(4.42)

—

—

—

(4.42)

20.30

(17.88)%

1.78%**

1.78%**

0.38%**

—

83%

16,773

March 31, 2008

29.44

.23

(4.27)

(4.04)

(.68)

—

(.68)

(4.72)

24.72

(14.16)%

1.77%

1.77%

0.78%

—

115%

19,218

March 31, 2007

27.73

(.28)

4.00

3.72

(2.01)

—

(2.01)

1.71

29.44

13.41%

1.75%

1.75%

0.73%

—

144%

36,441

March 31, 2006

25.08

(.25)

3.75

3.50

(.85)

—

(.85)

2.65

27.73

14.07%

1.85%

1.74%

(0.96)%

0.44%

192%

41,002

March 31, 2005

23.42

(.23)

1.89

1.66

—

—

—

1.66

25.08

7.09%

1.71%

1.71%

(0.94)%

0.32%

388%

52,642

March 31, 2004

15.17

(.05)

8.30

8.25

—

—

—

8.25

23.42

54.42%

1.74%

1.74%

(0.24)%

0.57%

540%

46,405

Nova Fund A-Class

September 30, 2008D

24.99

.08

(4.53)

(4.45)

—

—

—

(4.45)

20.54

(17.81)%

1.54%**

1.54%**

0.59%**

—

83%

4,174

March 31, 2008

29.67

.29

(4.29)

(4.00)

(.68)

—

(.68)

(4.68)

24.99

(13.92)%

1.52%

1.52%

0.97%

—

115%

11,791

March 31, 2007

27.87

(.21)

4.02

3.81

(2.01)

—

(2.01)

1.80

29.67

13.67%

1.50%

1.50%

0.98%

—

144%

15,586

March 31, 2006

25.15

(.19)

3.76

3.57

(.85)

—

(.85)

2.72

27.87

14.32%

1.60%

1.49%

(0.71)%

0.69%

192%

29,315

March 31, 2005

23.42

(.17)

1.90

1.73

—

—

—

1.73

25.15

7.39%

1.45%

1.45%

(0.68)%

0.58%

388%

18,463

March 31, 2004*

23.42

—

—

—

—

—

—

—

23.42

0.00%

0.00%**à

0.00%**à

0.00%**

0.81%**

540%

1

Nova Fund C-Class

September 30, 2008D

24.14

(.02)

(4.35)

(4.37)

—

—

—

(4.37)

19.77

(18.10)%

2.28%**

2.28%**

(0.13)%**

—

83%

19,928

March 31, 2008

28.91

.07

(4.16)

(4.09)

(.68)

—

(.68)

(4.77)

24.14

(14.60)%

2.27%

2.27%

0.24%

—

115%

29,715

March 31, 2007

27.39

(.42)

3.95

3.53

(2.01)

—

(2.01)

1.52

28.91

12.88%

2.25%

2.25%

0.23%

—

144%

42,925

March 31, 2006

24.89

(.38)

3.73

3.35

(.85)

—

(.85)

2.50

27.39

13.58%

2.35%

2.24%

(1.46)%

(0.06)%

192%

50,131

March 31, 2005

23.36

(.35)

1.88

1.53

—

—

—

1.53

24.89

6.55%

2.21%

2.21%

(1.44)%

(0.18)%

388%

49,464

March 31, 2004

15.20

(.12)

8.28

8.16

—

—

—

8.16

23.36

53.72%

2.26%

2.26%

(0.56)%

0.25%

540%

32,710

S&P 500 Fund A-Class

September 30, 2008D

25.92

.08

(2.94)

(2.86)

—

—

—

(2.86)

23.06

(11.03)%

1.52%**

1.52%**

0.64%**

—

100%

8,155

March 31, 2008

27.32

.52

(1.78)

(1.26)

(.14)

—

(.14)

(1.40)

25.92

(4.68)%

1.51%

1.51%

1.86%

—

396%

2,358

March 31, 2007*

25.00

.30

2.53

2.83

(.11)

(.40)

(.51)

2.32

27.32

11.34%

1.55%**

1.55%**

1.35%**

—

119%

2,063

S&P 500 Fund C-Class

September 30, 2008D

25.55

(.03)

(2.88)

(2.91)

—

—

—

(2.91)

22.64

(11.39)%

2.27%**

2.27%**

(0.22)%**

—

100%

6,553

March 31, 2008

27.15

.18

(1.64)

(1.46)

(.14)

—

(.14)

(1.60)

25.55

(5.45)%

2.25%

2.25%

0.67%

—

396%

7,836

March 31, 2007*

25.00

.19

2.47

2.66

(.11)

(.40)

(.51)

2.15

27.15

10.65%

2.25%**

2.25%**

0.84%**

—

119%

1,971

S&P 500 Fund H-Class

September 30, 2008D

25.90

.07

(2.93)

(2.86)

—

—

—

(2.86)

23.04

(11.04)%

1.53%**

1.53%**

0.54%**

—

100%

135,957

March 31, 2008

27.31

.39

(1.66)

(1.27)

(.14)

—

(.14)

(1.41)

25.90

(4.72)%

1.48%

1.48%

1.40%

—

396%

78,963

March 31, 2007*

25.00

.30

2.52

2.82

(.11)

(.40)

(.51)

2.31

27.31

11.29%

1.54%**

1.54%**

1.33%**

—

119%

6,374

Inverse S&P 500 Strategy Fund Investor Class

September 30, 2008D

40.00

.16

3.75

3.91

—

—

—

3.91

43.91

9.78%

1.42%**

1.42%**

0.80%**

—

—

256,727

March 31, 2008

37.85

.93

2.74

3.67

(1.52)

—

(1.52)

2.15

40.00

10.24%

1.41%

1.41%

3.08%

—

—

223,044

March 31, 2007†††

40.30

(.20)

(1.15)

(1.35)

(1.10)

—

(1.10)

(2.45)

37.85

(3.26)%

1.36%

1.36%

3.85%

—

—

293,092

March 31, 2006†††

43.45

(.20)

(2.35)

(2.55)

(.60)

—

(.60)

(3.15)

40.30

(5.84)%

1.41%

1.38%

(0.45)%

2.29%

—

329,785

March 31, 2005†††

45.85

(.20)

(2.20)

(2.40)

—

—

—

(2.40)

43.45

(5.23)%

1.38%

1.38%

(0.46)%

0.25%

—

326,085

March 31, 2004†††

65.30

(.20)

(17.25)

(17.45)

—

(2.00)

(2.00)

(19.45)

45.85

(26.90)%

1.38%

1.38%

(0.37)%

(0.28)%

—

353,496

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Combined

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Net

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Net

Income

Investment

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses■

Expenses■

(Loss)

Income (Loss)▲

Rate

omitted)

Inverse S&P 500 Strategy Fund Advisor Class

September 30, 2008D

$37.72

$

.05

$

3.52

$

3.57

$

—

$

—

$

—

$

3.57

$41.29

9.46%

1.93%**

1.93%**

0.28%**

—

—

$

14,451

March 31, 2008

36.00

.73

2.51

3.24

(1.52)

—

(1.52)

1.72

37.72

9.56%

1.92%

1.92%

2.64%

—

—

11,131

March 31, 2007†††

38.55

(.35)

(1.10)

(1.45)

(1.10)

—

(1.10)

(2.55)

36.00

(3.67)%

1.87%

1.87%

3.34%

—

—

22,712

March 31, 2006†††

41.80

(.40)

(2.25)

(2.65)

(.60)

—

(.60)

(3.25)

38.55

(6.32)%

1.91%

1.88%

(0.95)%

1.79%

—

45,332

March 31, 2005†††

44.35

(.40)

(2.15)

(2.55)

—

—

—

(2.55)

41.80

(5.75)%

1.88%

1.88%

(0.96)%

(0.25)%

—

40,964

March 31, 2004†††

63.50

(.45)

(16.70)

(17.15)

—

(2.00)

(2.00)

(19.15)

44.35

(27.19)%

1.87%

1.87%

(0.86)%

(0.77)%

—

45,073

Inverse S&P 500 Strategy Fund A-Class

September 30, 2008D

37.97

.10

3.56

3.66

—

—

—

3.66

41.63

9.64%

1.67%**

1.67%**

0.53%**

—

—

27,208

March 31, 2008

36.10

.81

2.58

3.39

(1.52)

—

(1.52)

1.87

37.97

9.95%

1.66%

1.66%

2.83%

—

—

9,344

March 31, 2007†††

38.60

(.25)

(1.15)

(1.40)

(1.10)

—

(1.10)

(2.50)

36.10

(3.53)%

1.61%

1.61%

3.60%

—

—

11,388

March 31, 2006†††

41.85

(.30)

(2.35)

(2.65)

(.60)

—

(.60)

(3.25)

38.60

(6.31)%

1.66%

1.63%

(0.70)%

2.04%

—

8,932

March 31, 2005†††

44.35

(.30)

(2.20)

(2.50)

—

—

—

(2.50)

41.85

(5.64)%

1.63%

1.63%

(0.71)%

0.00%

—

7,318

March 31, 2004*†††

44.35

—

—

—

—

—

—

—

44.35

0.00%

0.00%**à

0.00%**à

0.00%**

0.09%**

—

1

Inverse S&P 500 Strategy Fund C-Class

September 30, 2008D

37.00

(.04)

3.46

3.42

—

—

—

3.42

40.42

9.24%

2.43%**

2.43%**

(0.19)%**

—

—

24,832

March 31, 2008

35.50

.58

2.44

3.02

(1.52)

—

(1.52)

1.50

37.00

9.07%

2.41%

2.41%

2.14%

—

—

32,299

March 31, 2007†††

38.25

(.55)

(1.10)

(1.65)

(1.10)

—

(1.10)

(2.75)

35.50

(4.22)%

2.36%

2.36%

2.85%

—

—

42,651

March 31, 2006†††

41.65

(.60)

(2.20)

(2.80)

(.60)

—

(.60)

(3.40)

38.25

(6.70)%

2.41%

2.38%

(1.45)%

1.29%

—

39,146

March 31, 2005†††

44.45

(.65)

(2.15)

(2.80)

—

—

—

(2.80)

41.65

(6.30)%

2.38%

2.38%

(1.46)%

(0.75)%

—

43,763

March 31, 2004†††

64.00

(.70)

(16.85)

(17.55)

—

(2.00)

(2.00)

(19.55)

44.45

(27.62)%

2.39%

2.39%

(1.42)%

(1.33)%

—

45,604

NASDAQ-100^® Fund Investor Class

September 30, 2008D

11.81

(.04)

(1.19)

(1.23)

—

—

—

(1.23)

10.58

(10.41)%

1.28%**

1.28%**

(0.65)%**

—

38%

519,827

March 31, 2008

11.78

(.06)

.09

.03

—

—

—

.03

11.81

0.25%

1.28%

1.28%

(0.50)%

—

57%

617,923

March 31, 2007

11.34

(.06)

.50

.44

—

—

—

.44

11.78

3.88%

1.22%

1.22%

(0.52)%

—

71%

635,744

March 31, 2006

9.94

(.05)

1.49

1.44

(.04)

—

(.04)

1.40

11.34

14.45%

1.20%

1.20%

(0.49)%

—

122%

893,295

March 31, 2005

9.73

.04

.17

.21

—

—

—

.21

9.94

2.16%

1.20%

1.20%

0.40%

—

132%

801,185

March 31, 2004

7.02

(.09)

2.80

2.71

—

—

—

2.71

9.73

38.60%

1.22%

1.22%

(0.98)%

—

139%

858,816

NASDAQ-100^® Fund Advisor Class

September 30, 2008D

11.23

(.07)

(1.12)

(1.19)

—

—

—

(1.19)

10.04

(10.60)%

1.78%**

1.78%**

(1.14)%**

—

38%

15,144

March 31, 2008

11.26

(.12)

.09

(.03)

—

—

—

(.03)

11.23

(0.27)%

1.78%

1.78%

(0.99)%

—

57%

15,184

March 31, 2007

10.90

(.11)

.47

.36

—

—

—

.36

11.26

3.30%

1.73%

1.73%

(1.07)%

—

71%

9,349

March 31, 2006

9.60

(.10)

1.44

1.34

(.04)

—

(.04)

1.30

10.90

13.92%

1.70%

1.70%

(1.00)%

—

122%

27,832

March 31, 2005

9.46

(.02)

.16

.14

—

—

—

.14

9.60

1.48%

1.69%

1.69%

(0.25)%

—

132%

19,887

March 31, 2004

6.85

(.13)

2.74

2.61

—

—

—

2.61

9.46

38.10%

1.71%

1.71%

(1.47)%

—

139%

57,535

NASDAQ-100^® Fund A-Class

September 30, 2008D

11.35

(.05)

(1.15)

(1.20)

—

—

—

(1.20)

10.15

(10.57)%

1.54%**

1.54%**

(0.87)%**

—

38%

4,383

March 31, 2008

11.36

(.09)

.08

(.01)

—

—

—

(.01)

11.35

(0.09)%

1.54%

1.54%

(0.76)%

—

57%

6,044

March 31, 2007

10.96

(.08)

.48

.40

—

—

—

.40

11.36

3.65%

1.46%

1.46%

(0.73)%

—

71%

3,686

March 31, 2006

9.63

(.08)

1.45

1.37

(.04)

—

(.04)

1.33

10.96

14.18%

1.46%

1.46%

(0.78)%

—

122%

2,491

March 31, 2005

9.46

.06

.11

.17

—

—

—

.17

9.63

1.80%

1.45%

1.45%

0.59%

—

132%

1,818

March 31, 2004*

9.46

—

—

—

—

—

—

—

9.46

0.00%

0.00%**à

0.00%**à

0.00%**

—

139%

1

NASDAQ-100^® Fund C-Class

September 30, 2008D

10.95

(.09)

(1.10)

(1.19)

—

—

—

(1.19)

9.76

(10.87)%

2.28%**

2.28%**

(1.63)%**

—

38%

10,487

March 31, 2008

11.02

(.18)

.11

(.07)

—

—

—

(.07)

10.95

(0.64)%

2.28%

2.28%

(1.50)%

—

57%

10,343

March 31, 2007

10.73

(.16)

.45

.29

—

—

—

.29

11.02

2.70%

2.22%

2.22%

(1.55)%

—

71%

10,032

March 31, 2006

9.50

(.16)

1.43

1.27

(.04)

—

(.04)

1.23

10.73

13.33%

2.21%

2.21%

(1.52)%

—

122%

18,707

March 31, 2005

9.41

(.03)

.12

.09

—

—

—

.09

9.50

0.96%

2.19%

2.19%

(0.33)%

—

132%

14,422

March 31, 2004

6.86

(.18)

2.73

2.55

—

—

—

2.55

9.41

37.17%

2.23%

2.23%

(1.97)%

—

139%

13,653

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Combined

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Net

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Net

Income

Investment

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses■

Expenses■

(Loss)

Income (Loss)▲

Rate

omitted)

Inverse NASDAQ-100^® Strategy Fund Investor Class

September 30, 2008D

$21.27

$

.06

$

1.58

$

1.64

$

—

$

—

$

—

$

1.64

$22.91

7.71%

1.46%**

1.46%**

0.58%**

—

—

$

59,521

March 31, 2008

21.67

.59

(.30)

.29

(.69)

—

(.69)

(.40)

21.27

1.92%

1.47%

1.47%

2.98%

—

—

59,819

March 31, 2007

21.80

(.11)

.54

.43

(.56)

—

(.56)

(.13)

21.67

2.01%

1.40%

1.40%

3.79%

—

—

104,617

March 31, 2006

24.55

(.11)

(2.31)

(2.42)

(.33)

—

(.33)

(2.75)

21.80

(9.85)%

1.39%

1.38%

(0.45)%

2.22%

—

143,742

March 31, 2005

25.69

(.11)

(1.03)

(1.14)

—

—

—

(1.14)

24.55

(4.44)%

1.38%

1.38%

(0.46)%

0.20%

—

198,288

March 31, 2004

37.79

(.13)

(11.97)

(12.10)

—

—

—

(12.10)

25.69

(32.02)%

1.40%

1.40%

(0.47)%

(0.37)%

—

209,994

Inverse NASDAQ-100^® Strategy Fund Advisor Class

September 30, 2008D

20.77

.02

1.52

1.54

—

—

—

1.54

22.31

7.41%

1.96%**

1.96%**

0.23%**

—

—

932

March 31, 2008

21.28

.51

(.33)

.18

(.69)

—

(.69)

(.51)

20.77

1.43%

1.98%

1.98%

2.56%

—

—

3,744

March 31, 2007

21.51

(.22)

.55

.33

(.56)

—

(.56)

(.23)

21.28

1.56%

1.90%

1.90%

3.29%

—

—

11,436

March 31, 2006

24.34

(.22)

(2.28)

(2.50)

(.33)

—

(.33)

(2.83)

21.51

(10.27)%

1.89%

1.89%

(0.96)%

1.71%

—

10,390

March 31, 2005

25.60

(.24)

(1.02)

(1.26)

—

—

—

(1.26)

24.34

(4.92)%

1.88%

1.88%

(0.96)%

(0.30)%

—

17,059

March 31, 2004*

29.97

(.16)

(4.21)

(4.37)

—

—

—

(4.37)

25.60

(14.58)%

1.90%**

1.90%**

(0.97)%**

(0.87)%**

—

17,975

Inverse NASDAQ-100^® Strategy Fund A-Class

September 30, 2008D

20.97

.02

1.57

1.59

—

—

—

1.59

22.56

7.58%

1.71%**

1.71%**

0.25%**

—

—

3,353

March 31, 2008

21.43

.52

(.29)

.23

(.69)

—

(.69)

(.46)

20.97

1.65%

1.72%

1.72%

2.61%

—

—

1,784

March 31, 2007

21.61

(.16)

.54

.38

(.56)

—

(.56)

(.18)

21.43

1.79%

1.64%

1.64%

3.55%

—

—

4,086

March 31, 2006

24.39

(.16)

(2.29)

(2.45)

(.33)

—

(.33)

(2.78)

21.61

(10.04)%

1.63%

1.63%

(0.70)%

1.97%

—

2,108

March 31, 2005

25.60

(.17)

(1.04)

(1.21)

—

—

—

(1.21)

24.39

(4.73)%

1.62%

1.62%

(0.70)%

(0.04)%

—

5,697

March 31, 2004*

25.60

—

—

—

—

—

—

—

25.60

0.00%

0.00%**à

0.00%**à

0.00%**

0.10%**

—

1

Inverse NASDAQ-100^® Strategy Fund C-Class

September 30, 2008D

19.63

(.04)

1.45

1.41

—

—

—

1.41

21.04

7.18%

2.46%**

2.46%**

(0.38)%**

—

—

5,415

March 31, 2008

20.27

.38

(.33)

.05

(.69)

—

(.69)

(.64)

19.63

0.85%

2.48%

2.48%

2.05%

—

—

7,633

March 31, 2007

20.63

(.32)

.52

.20

(.56)

—

(.56)

(.36)

20.27

1.00%

2.40%

2.40%

2.79%

—

—

17,834

March 31, 2006

23.48

(.32)

(2.20)

(2.52)

(.33)

—

(.33)

(2.85)

20.63

(10.73)%

2.40%

2.39%

(1.46)%

1.21%

—

13,527

March 31, 2005

24.83

(.35)

(1.00)

(1.35)

—

—

—

(1.35)

23.48

(5.44)%

2.38%

2.38%

(1.46)%

(0.80)%

—

15,693

March 31, 2004

36.92

(.38)

(11.71)

(12.09)

—

—

—

(12.09)

24.83

(32.75)%

2.41%

2.41%

(1.48)%

(1.38)%

—

34,375

Mid-Cap 1.5x Strategy Fund A-Class

September 30, 2008D

32.39

.02

(4.14)

(4.12)

—

—

—

(4.12)

28.27

(12.72)%

1.67%**

1.67%**

0.09%**

—

97%

1,082

March 31, 2008

41.56

.23

(7.46)

(7.23)

(.26)

(1.68)

(1.94)

(9.17)

32.39

(18.29)%

1.67%

1.67%

0.57%

—

226%

1,571

March 31, 2007

40.14

.05

2.74

2.79

—

(1.37)

(1.37)

1.42

41.56

7.11%

1.67%

1.67%

0.13%

—

296%

2,806

March 31, 2006

31.86

.01

8.65

8.66

—

(.38)

(.38)

8.28

40.14

27.27%

1.92%

1.66%

0.03%

—

528%

4,948

March 31, 2005

28.30

(.03)

3.59

3.56

—

—

—

3.56

31.86

12.58%

1.63%

1.63%

(0.10)%

—

669%

1,050

March 31, 2004*

28.30

—

—

—

—

—

—

—

28.30

0.00%

0.00%**à

0.00%**à

0.00%**

—

1,239%

4

Mid-Cap 1.5x Strategy Fund C-Class

September 30, 2008D

30.73

(.11)

(3.90)

(4.01)

—

—

—

(4.01)

26.72

(13.05)%

2.42%**

2.42%**

(0.65)%**

—

97%

7,214

March 31, 2008

39.82

(.08)

(7.07)

(7.15)

(.26)

(1.68)

(1.94)

(9.09)

30.73

(18.90)%

2.42%

2.42%

(0.20)%

—

226%

8,388

March 31, 2007

38.81

(.23)

2.61

2.38

—

(1.37)

(1.37)

1.01

39.82

6.29%

2.41%

2.41%

(0.62)%

—

296%

17,112

March 31, 2006

31.03

(.25)

8.41

8.16

—

(.38)

(.38)

7.78

38.81

26.38%

2.66%

2.40%

(0.72)%

—

528%

28,836

March 31, 2005

27.76

(.26)

3.53

3.27

—

—

—

3.27

31.03

11.78%

2.37%

2.37%

(0.91)%

—

669%

17,912

March 31, 2004

15.85

(.31)

12.22

11.91

—

—

—

11.91

27.76

75.14%

2.41%

2.41%

(1.31)%

—

1,239%

14,444

Mid-Cap 1.5x Strategy Fund H-Class

September 30, 2008D

32.40

.03

(4.14)

(4.11)

—

—

—

(4.11)

28.29

(12.69)%

1.67%**

1.67%**

0.15%**

—

97%

9,232

March 31, 2008

41.58

.25

(7.49)

(7.24)

(.26)

(1.68)

(1.94)

(9.18)

32.40

(18.31)%

1.67%

1.67%

0.61%

—

226%

11,763

March 31, 2007

40.17

.06

2.72

2.78

—

(1.37)

(1.37)

1.41

41.58

7.08%

1.67%

1.67%

0.16%

—

296%

24,918

March 31, 2006

31.86

—§§

8.69

8.69

—

(.38)

(.38)

8.31

40.17

27.36%

1.90%

1.64%

0.01%

—

528%

50,883

March 31, 2005

28.30

(.06)

3.62

3.56

—

—

—

3.56

31.86

12.58%

1.62%

1.62%

(0.21)%

—

669%

59,274

March 31, 2004

16.04

(.14)

12.40

12.26

—

—

—

12.26

28.30

76.43%

1.66%

1.66%

(0.56)%

—

1,239%

68,193

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Net

Income

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses

Expenses

(Loss)

Rate

omitted)

Inverse Mid-Cap Strategy Fund A-Class

September 30, 2008D

$37.07

$

.05

$

2.36

$

2.41

$

—

$

—

$

—

$

2.41

$39.48

6.50%

1.67%**

1.67%**

0.29%**

—

$

733

March 31, 2008

33.78

.81

3.11

3.92

(.63)

—

(.63)

3.29

37.07

11.83%

1.66%

1.66%

2.35%

—

906

March 31, 2007

37.03

1.35

(1.81)

(.46)

(2.79)

—

(2.79)

(3.25)

33.78

(1.35)%

1.65%

1.65%

3.52%

—

477

March 31, 2006

44.01

.87

(7.20)

(6.33)

(.65)

—

(.65)

(6.98)

37.03

(14.44)%

1.66%

1.66%

2.12%

—

161

March 31, 2005

49.01

(.06)

(4.94)

(5.00)

—

—

—

(5.00)

44.01

(10.20)%

1.63%

1.63%

(0.13)%

—

61

March 31, 2004*

49.01

—

—

—

—

—

—

—

49.01

0.00%

0.00%**à

0.00%**à

0.00%**

—

1

Inverse Mid-Cap Strategy Fund C-Class

September 30, 2008D

35.82

(.07)

2.24

2.17

—

—

—

2.17

37.99

6.06%

2.42%**

2.42%**

(0.41)%**

—

772

March 31, 2008

32.89

.60

2.96

3.56

(.63)

—

(.63)

2.93

35.82

11.05%

2.41%

2.41%

1.83%

—

1,478

March 31, 2007

36.43

1.05

(1.80)

(.75)

(2.79)

—

(2.79)

(3.54)

32.89

(2.19)%

2.40%

2.40%

2.81%

—

801

March 31, 2006

43.62

.15

(6.69)

(6.54)

(.65)

—

(.65)

(7.19)

36.43

(15.05)%

2.41%

2.41%

1.54%

—

1,147

March 31, 2005

48.98

(.27)

(5.09)

(5.36)

—

—

—

(5.36)

43.62

(10.94)%

2.36%

2.36%

(0.58)%

—

1,011

March 31, 2004*

50.00

(.08)

(.94)

(1.02)

—

—

—

(1.02)

48.98

(2.04)%

2.23%**

2.23%**

(1.45)%**

—

137

Inverse Mid-Cap Strategy Fund H-Class

September 30, 2008D

37.07

.07

2.32

2.39

—

—

—

2.39

39.46

6.45%

1.67%**

1.67%**

0.41%**

—

3,540

March 31, 2008

33.78

.78

3.14

3.92

(.63)

—

(.63)

3.29

37.07

11.83%

1.65%

1.65%

2.26%

—

46,630

March 31, 2007

37.04

1.35

(1.82)

(.47)

(2.79)

—

(2.79)

(3.26)

33.78

(1.38)%

1.66%

1.66%

3.51%

—

15,531

March 31, 2006

44.01

.83

(7.15)

(6.32)

(.65)

—

(.65)

(6.97)

37.04

(14.42)%

1.64%

1.64%

2.01%

—

18,475

March 31, 2005

49.01

.18

(5.18)

(5.00)

—

—

—

(5.00)

44.01

(10.20)%

1.60%

1.60%

0.39%

—

30,073

March 31, 2004*

50.00

(.05)

(.94)

(.99)

—

—

—

(.99)

49.01

(1.98)%

1.54%**

1.54%**

(0.74)%**

—

2,678

Russell 2000^® 1.5x Strategy Fund A-Class

September 30, 2008D

28.62

.02

(1.37)

(1.35)

—

—

—

(1.35)

27.27

(4.72)%

1.69%**

1.69%**

0.11%**

192%

1,588

March 31, 2008

37.24

.29

(8.83)

(8.54)

(.08)

—

(.08)

(8.62)

28.62

(22.98)%

1.67%

1.67%

0.81%

227%

4,372

March 31, 2007

37.33

.10

1.24

1.34

—

(1.43)

(1.43)

(.09)

37.24

3.60%

1.66%

1.66%

0.28%

179%

5,976

March 31, 2006

27.54

.04

9.75

9.79

—

—

—

9.79

37.33

35.55%

2.06%

1.65%

0.13%

441%

6,789

March 31, 2005

26.22

(.03)

1.51

1.48

—

(.16)

(.16)

1.32

27.54

5.63%

1.61%

1.61%

(0.10)%

501%

3,340

March 31, 2004*

26.22

—

—

—

—

—

—

—

26.22

0.00%

0.00%**à

0.00%**à

0.00%**

965%

4

Russell 2000^® 1.5x Strategy Fund C-Class

September 30, 2008D

27.10

(.09)

(1.29)

(1.38)

—

—

—

(1.38)

25.72

(5.09)%

2.44%**

2.44%**

(0.63)%**

192%

11,270

March 31, 2008

35.51

.03

(8.36)

(8.33)

(.08)

—

(.08)

(8.41)

27.10

(23.50)%

2.42%

2.42%

0.09%

227%

10,873

March 31, 2007

35.93

(.16)

1.17

1.01

—

(1.43)

(1.43)

(.42)

35.51

2.81%

2.41%

2.41%

(0.47)%

179%

19,942

March 31, 2006

26.69

(.21)

9.45

9.24

—

—

—

9.24

35.93

34.62%

2.81%

2.40%

(0.70)%

441%

31,956

March 31, 2005

25.63

(.26)

1.48

1.22

—

(.16)

(.16)

1.06

26.69

4.75%

2.37%

2.37%

(1.00)%

501%

18,915

March 31, 2004

12.75

(.28)

13.16

12.88

—

—

—

12.88

25.63

101.02%

2.41%

2.41%

(1.34)%

965%

48,851

Russell 2000^® 1.5x Strategy Fund H-Class

September 30, 2008D

28.62

.02

(1.38)

(1.36)

—

—

—

(1.36)

27.26

(4.75)%

1.69%**

1.69%**

0.15%**

192%

13,000

March 31, 2008

37.22

.30

(8.82)

(8.52)

(.08)

—

(.08)

(8.60)

28.62

(22.93)%

1.67%

1.67%

0.83%

227%

13,839

March 31, 2007

37.32

.10

1.23

1.33

—

(1.43)

(1.43)

(.10)

37.22

3.57%

1.66%

1.66%

0.27%

179%

42,861

March 31, 2006

27.51

.03

9.78

9.81

—

—

—

9.81

37.32

35.66%

2.05%

1.64%

0.10%

441%

170,698

March 31, 2005

26.22

(.07)

1.52

1.45

—

(.16)

(.16)

1.29

27.51

5.52%

1.62%

1.62%

(0.26)%

501%

68,084

March 31, 2004

12.94

(.14)

13.42

13.28

—

—

—

13.28

26.22

102.63%

1.66%

1.66%

(0.62)%

965%

174,320

Russell 2000^® Fund A-Class

September 30, 2008D

23.57

.02

(.42)

(.40)

—

—

—

(.40)

23.17

(1.70)%

1.54%**

1.54%**

0.14%**

316%

3,895

March 31, 2008

27.64

.34

(4.21)

(3.87)

(.20)

—

(.20)

(4.07)

23.57

(14.08)%

1.51%

1.51%

1.26%

535%

909

March 31, 2007*

25.00

.35

2.43

2.78

(.14)

—

(.14)

2.64

27.64

11.13%

1.51%**

1.51%**

1.54%**

335%

275

Russell 2000^® Fund C-Class

September 30, 2008D

23.28

(.06)

(.43)

(.49)

—

—

—

(.49)

22.79

(2.10)%

2.29%**

2.29%**

(0.52)%**

316%

908

March 31, 2008

27.48

.23

(4.23)

(4.00)

(.20)

—

(.20)

(4.20)

23.28

(14.63)%

2.27%

2.27%

0.85%

535%

678

March 31, 2007*

25.00

.17

2.45

2.62

(.14)

—

(.14)

2.48

27.48

10.49%

2.28%**

2.28%**

0.76%**

335%

739

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund's performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Operating

Income

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses

Expenses§

(Loss)

Rate

omitted)

Russell 2000^® Fund H-Class

September 30, 2008D

$23.57

$

.02

$

(.42)

$

(.40)

$

—

$

—

$

—

$

(.40)

$23.17

(1.70)%

1.54%**

1.54%**

0.14%**

316%

$

29,030

March 31, 2008

27.64

.51

(4.38)

(3.87)

(.20)

—

(.20)

(4.07)

23.57

(14.08)%

1.52%

1.52%

1.86%

535%

4,327

March 31, 2007*

25.00

.34

2.44

2.78

(.14)

—

(.14)

2.64

27.64

11.13%

1.52%**

1.52%**

1.55%**

335%

13,248

Inverse Russell 2000^® Strategy Fund A-Class

September 30, 2008D

39.05

.10

(1.58)

(1.48)

—

—

—

(1.48)

37.57

(3.79)%

2.23%**

1.70%**

0.52%**

—

2,886

March 31, 2008

35.00

1.06

4.40

5.46

(1.41)

—

(1.41)

4.05

39.05

16.11%

1.89%

1.67%

2.96%

—

6,816

March 31, 2007

36.96

1.38

(1.65)

(.27)

(1.69)

—

(1.69)

(1.96)

35.00

(0.67)%

1.65%

1.65%

3.64%

—

9,905

March 31, 2006

46.09

.85

(9.26)

(8.41)

(.72)

—

(.72)

(9.13)

36.96

(18.40)%

1.63%

1.63%

1.97%

—

1,067

March 31, 2005

48.80

(.02)

(2.69)

(2.71)

—

—

—

(2.71)

46.09

(5.55)%

1.63%

1.63%

(0.03)%

—

404

March 31, 2004*

48.80

—

—

—

—

—

—

—

48.80

0.00%

0.00%**à

0.00%**à

0.00%**

—

1

Inverse Russell 2000^® Strategy Fund C-Class

September 30, 2008D

37.80

(.06)

(1.49)

(1.55)

—

—

—

(1.55)

36.25

(4.10)%

2.97%**

2.44%**

(0.33)%**

—

7,279

March 31, 2008

34.18

.76

4.27

5.03

(1.41)

—

(1.41)

3.62

37.80

15.22%

2.67%

2.42%

2.17%

—

6,136

March 31, 2007

36.40

1.07

(1.60)

(.53)

(1.69)

—

(1.69)

(2.22)

34.18

(1.40)%

2.40%

2.40%

2.87%

—

8,455

March 31, 2006

45.71

.56

(9.15)

(8.59)

(.72)

—

(.72)

(9.31)

36.40

(18.95)%

2.40%

2.40%

1.33%

—

3,164

March 31, 2005

48.77

(.49)

(2.57)

(3.06)

—

—

—

(3.06)

45.71

(6.27)%

2.39%

2.39%

(0.97)%

—

3,951

March 31, 2004*

50.00

(.08)

(1.15)

(1.23)

—

—

—

(1.23)

48.77

(2.46)%

2.24%**

2.24%**

(1.42)%**

—

492

Inverse Russell 2000^® Strategy Fund H-Class

September 30, 2008D

39.07

.08

(1.55)

(1.47)

—

—

—

(1.47)

37.60

(3.76)%

2.22%**

1.69%**

0.45%**

—

31,222

March 31, 2008

35.02

1.05

4.41

5.46

(1.41)

—

(1.41)

4.05

39.07

16.10%

1.89%

1.67%

2.93%

—

42,554

March 31, 2007

36.98

1.36

(1.63)

(.27)

(1.69)

—

(1.69)

(1.96)

35.02

(0.67)%

1.65%

1.65%

3.56%

—

48,718

March 31, 2006

46.09

.91

(9.30)

(8.39)

(.72)

—

(.72)

(9.11)

36.98

(18.36)%

1.65%

1.65%

2.14%

—

52,201

March 31, 2005

48.80

.04

(2.75)

(2.71)

—

—

—

(2.71)

46.09

(5.55)%

1.63%

1.63%

0.09%

—

46,832

March 31, 2004*

50.00

(.04)

(1.16)

(1.20)

—

—

—

(1.20)

48.80

(2.40)%

1.54%**

1.54%**

(0.72)%**

—

5,054

Government Long Bond 1.2x Strategy Fund Investor Class

September 30, 2008D

11.78

.20

(.07)

.13

(.19)

—

(.19)

(.06)

11.72

1.20%

0.97%**

0.97%**

3.38%**

1,080%

19,591

March 31, 2008

10.59

.40

1.19

1.59

(.40)

—

(.40)

1.19

11.78

15.43%

0.97%

0.97%

3.75%

1,142%

30,695

March 31, 2007

10.50

.41

.09

.50

(.41)

—

(.41)

.09

10.59

4.87%

0.96%

0.96%

3.92%

1,357%

40,816

March 31, 2006

11.04

.42

(.54)

(.12)

(.42)

—

(.42)

(.54)

10.50

(1.37)%

0.94%

0.94%

3.69%

1,451%

33,223

March 31, 2005

11.03

.42

—

.42

(.41)

—

(.41)

.01

11.04

4.04%

0.93%

0.93%

3.95%

737%

25,992

March 31, 2004

10.95

.41

.08

.49

(.41)

—

(.41)

.08

11.03

4.65%

0.95%

0.95%

3.84%

1,143%

25,188

Government Long Bond 1.2x Strategy Fund Advisor Class

September 30, 2008D

11.72

.16

(.05)

.11

(.16)

—

(.16)

(.05)

11.67

1.03%

1.47%**

1.47%**

2.88%**

1,080%

11,267

March 31, 2008

10.54

.34

1.19

1.53

(.35)

—

(.35)

1.18

11.72

14.82%

1.47%

1.47%

3.13%

1,142%

25,181

March 31, 2007

10.50

.37

.03

.40

(.36)

—

(.36)

.04

10.54

3.86%

1.46%

1.46%

3.44%

1,357%

10,815

March 31, 2006

11.07

.37

(.57)

(.20)

(.37)

—

(.37)

(.57)

10.50

(2.10)%

1.42%

1.42%

3.16%

1,451%

21,200

March 31, 2005

11.04

.36

.04

.40

(.37)

—

(.37)

.03

11.07

3.75%

1.41%

1.41%

3.32%

737%

53,283

March 31, 2004*

10.00

.23

1.04

1.27

(.23)

—

(.23)

1.04

11.04

12.84%

1.45%**

1.45%**

3.21%**

1,143%

46,690

Government Long Bond 1.2x Strategy Fund A-Class

September 30, 2008D

11.79

.18

(.05)

.13

(.18)

—

(.18)

(.05)

11.74

1.16%

1.22%**

1.22%**

3.15%**

1,080%

13,614

March 31, 2008

10.60

.38

1.19

1.57

(.38)

—

(.38)

1.19

11.79

15.13%

1.22%

1.22%

3.44%

1,142%

20,374

March 31, 2007

10.50

.38

.10

.48

(.38)

—

(.38)

.10

10.60

4.71%

1.22%

1.22%

3.64%

1,357%

11,460

March 31, 2006

11.07

.40

(.58)

(.18)

(.39)

—

(.39)

(.57)

10.50

(1.88)%

1.17%

1.17%

3.45%

1,451%

1,503

March 31, 2005

11.05

.39

.02

.41

(.39)

—

(.39)

.02

11.07

3.86%

1.15%

1.15%

3.63%

737%

1,703

March 31, 2004*

11.05

—

—

—

—

—

—

—

11.05

0.00%

0.00%**à

0.00%**à

0.00%**

1,143%

1

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

Combined

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Net

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Investment

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Operating

Income

Income

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses■

Expenses§

(Loss)

(Loss)▲

Rate

omitted)

Government Long Bond 1.2x Strategy Fund C-Class

September 30, 2008D

$11.77

$

.14

$

(.06)

$

.08

$

(.14)

$

—

$

(.14)

$

(.06)

$11.71

0.70%

1.97%**

1.97%**

2.39%**

—

1,080%

$

6,185

March 31, 2008

10.59

.30

1.18

1.48

(.30)

—

(.30)

1.18

11.77

14.20%

1.98%

1.98%

2.80%

—

1,142%

6,239

March 31, 2007

10.50

.31

.08

.39

(.30)

—

(.30)

.09

10.59

3.84%

1.96%

1.96%

2.93%

—

1,357%

15,640

March 31, 2006

11.07

.31

(.57)

(.26)

(.31)

—

(.31)

(.57)

10.50

(2.61)%

1.93%

1.93%

2.69%

—

1,451%

7,293

March 31, 2005

11.05

.31

.02

.33

(.31)

—

(.31)

.02

11.07

3.10%

1.92%

1.92%

2.86%

—

737%

11,005

March 31, 2004

10.97

.30

.08

.38

(.30)

—

(.30)

.08

11.05

3.59%

1.96%

1.96%

2.85%

—

1,143%

3,828

Inverse Government Long Bond Strategy Fund Investor Class

September 30, 2008D

16.81

(.08)

.08

—

—

—

—

—

16.81

0.00%

4.00%**

1.40%**

(0.89)%**

—

314%

253,040

March 31, 2008

19.37

.49

(2.39)

(1.90)

(.66)

—

(.66)

(2.56)

16.81

(9.98)%

3.45%

1.40%

2.56%

—

550%

237,900

March 31, 2007

19.69

(.09)

.40

.31

(.63)

—

(.63)

(.32)

19.37

1.66%

4.97%

1.36%

3.68%

—

192%

313,117

March 31, 2006

18.94

(.07)

.82

.75

—

—

—

.75

19.69

3.96%

4.66%

1.33%

(0.40)%

0.78%

179%

768,588

March 31, 2005

19.77

(.08)

(.75)

(.83)

—

—

—

(.83)

18.94

(4.20)%

5.11%

1.32%

(0.40)%

1.53%

101%

1,472,040

March 31, 2004

21.23

(.09)

(1.37)

(1.46)

—

—

—

(1.46)

19.77

(6.88)%

5.57%

1.38%

(0.45)%

(3.84)%

187%

898,294

Inverse Government Long Bond Strategy Fund Advisor Class

September 30, 2008D

16.41

(.12)

.10

(.02)

—

—

—

(.02)

16.39

(0.12)%

4.51%**

1.91%**

(1.38)%**

—

314%

36,121

March 31, 2008

19.01

.34

(2.28)

(1.94)

(.66)

—

(.66)

(2.60)

16.41

(10.39)%

4.10%

1.90%

1.84%

—

550%

24,891

March 31, 2007

19.43

(.18)

.39

.21

(.63)

—

(.63)

(.42)

19.01

1.17%

5.47%

1.86%

3.18%

—

192%

43,782

March 31, 2006

18.79

(.16)

.80

.64

—

—

—

.64

19.43

3.41%

5.16%

1.83%

(0.90)%

0.28%

179%

99,546

March 31, 2005

19.71

(.17)

(.75)

(.92)

—

—

—

(.92)

18.79

(4.67)%

5.61%

1.82%

(0.90)%

1.03%

101%

232,541

March 31, 2004*

22.41

(.13)

(2.57)

(2.70)

—

—

—

(2.70)

19.71

(12.05)%

6.05%**

1.86%**

(0.93)%**

(4.32)%**

187%

52,298

Inverse Government Long Bond Strategy Fund A-Class

September 30, 2008D

16.57

(.09)

.07

(.02)

—

—

—

(.02)

16.55

(0.12)%

4.16%**

1.66%**

(1.09)%**

—

314%

60,453

March 31, 2008

19.16

.44

(2.37)

(1.93)

(.66)

—

(.66)

(2.59)

16.57

(10.25)%

3.86%

1.65%

2.37%

—

550%

37,256

March 31, 2007

19.52

(.14)

.41

.27

(.63)

—

(.63)

(.36)

19.16

1.47%

5.22%

1.61%

3.43%

—

192%

69,606

March 31, 2006

18.84

(.12)

.80

.68

—

—

—

.68

19.52

3.61%

4.91%

1.58%

(0.65)%

0.53%

179%

124,679

March 31, 2005

19.71

(.13)

(.74)

(.87)

—

—

—

(.87)

18.84

(4.41)%

5.35%

1.56%

(0.64)%

1.29%

101%

177,178

March 31, 2004*

19.71

—

—

—

—

—

—

—

19.71

0.00%

0.00%**à

0.00%**à

0.00%**

(3.39)%**

187%

5,057

Inverse Government Long Bond Strategy Fund C-Class

September 30, 2008D

15.65

(.15)

.08

(.07)

—

—

—

(.07)

15.58

(0.45)%

4.97%**

2.40%**

(1.87)%**

—

314%

132,635

March 31, 2008

18.26

.29

(2.24)

(1.95)

(.66)

—

(.66)

(2.61)

15.65

(10.87)%

4.44%

2.40%

1.62%

—

550%

124,572

March 31, 2007

18.78

(.27)

.38

.11

(.63)

—

(.63)

(.52)

18.26

0.67%

5.97%

2.36%

2.68%

—

192%

213,175

March 31, 2006

18.25

(.25)

.78

.53

—

—

—

.53

18.78

2.90%

5.66%

2.33%

(1.40)%

(0.22)%

179%

533,862

March 31, 2005

19.24

(.27)

(.72)

(.99)

—

—

—

(.99)

18.25

(5.15)%

6.11%

2.32%

(1.40)%

0.53%

101%

893,249

March 31, 2004

20.88

(.29)

(1.35)

(1.64)

—

—

—

(1.64)

19.24

(7.85)%

6.57%

2.38%

(1.45)%

(4.84)%

187%

489,918

High Yield Strategy Fund A-Class

September 30, 2008D

24.31

.06

(.21)

(.15)

—

—

—

(.15)

24.16

(0.62)%

1.55%**

1.55%**

0.47%**

—

—

8,433

March 31, 2008*

25.00

.69

(1.31)

(.62)

(.07)

—

(.07)

(.69)

24.31

(2.49)%

1.50%**

1.50%**

2.79%**

—

—

10,530

High Yield Strategy Fund C-Class

September 30, 2008D

24.12

(—)§§

(.24)

(.24)

—

—

—

(.24)

23.88

(1.00)%

2.31%**

2.31%**

(0.03)%**

—

—

667

March 31, 2008*

25.00

.46

(1.27)

(.81)

(.07)

—

(.07)

(.88)

24.12

(3.25)%

2.22%**

2.22%**

1.90%**

—

—

1,001

High Yield Strategy Fund H-Class

September 30, 2008D

24.28

.07

(.23)

(.16)

—

—

—

(.16)

24.12

(0.66)%

1.58%**

1.58%**

0.55%**

—

—

10,786

March 31, 2008*

25.00

.62

(1.27)

(.65)

(.07)

—

(.07)

(.72)

24.28

(2.61)%

1.49%**

1.49%**

2.55%**

—

—

64,290

Inverse High Yield Strategy Fund A-Class

September 30, 2008D

51.26

.12

.37

.49

—

—

—

.49

51.75

0.96%

1.52%**

1.52%**

0.47%**

—

—

1,685

March 31, 2008*

50.00

.54

.72

1.26

—

—

—

1.26

51.26

2.52%

1.52%**

1.52%**

1.09%**

—

—

1,673

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Net

Income

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses

Expenses

(Loss)

Rate

omitted)

Inverse High Yield Strategy Fund C-Class

September 30, 2008D

$51.06

$

(.06)

$

.37

$

.31

$

—

$

—

$

—

$

.31

$51.37

0.61%

2.27%**

2.27%**

(0.24)%**

—

$

2,974

March 31, 2008*

50.00

(.62)

1.68

1.06

—

—

—

1.06

51.06

2.12%

2.26%**

2.26%**

(1.25)%**

—

2,958

Inverse High Yield Strategy Fund H-Class

September 30, 2008D

51.38

.07

.44

.51

—

—

—

.51

51.89

0.99%

1.52%**

1.52%**

0.28%**

—

13,500

March 31, 2008*

50.00

1.44

(.06)

1.38

—

—

—

1.38

51.38

2.76%

1.52%**

1.52%**

2.84%**

—

6,536

Europe 1.25x Strategy Fund A-Class

September 30, 2008D

22.25

.17

(5.53)

(5.36)

—

—

—

(5.36)

16.89

(24.09)%

1.67%**

1.67%**

1.53%**

115%

889

March 31, 2008

24.13

.62

(1.57)

(.95)

(.23)

(.70)

(.93)

(1.88)

22.25

(4.60)%

1.69%

1.69%

2.42%

320%

1,750

March 31, 2007

20.06

.54

3.65

4.19

(.12)

—

(.12)

4.07

24.13

20.90%

1.54%

1.54%

2.33%

373%

10,892

March 31, 2006

17.14

.18

3.06

3.24

—

(.32)

(.32)

2.92

20.06

19.10%

1.67%

1.66%

1.02%

454%

1,378

March 31, 2005

14.98

.05

2.59

2.64

(.47)

(.01)

(.48)

2.16

17.14

17.56%

1.62%

1.62%

0.29%

—

180

March 31, 2004*

14.98

—

—

—

—

—

—

—

14.98

0.00%

0.00%**à

0.00%**à

0.00%**

—

1

Europe 1.25x Strategy Fund C-Class

September 30, 2008D

21.00

.08

(5.20)

(5.12)

—

—

—

(5.12)

15.88

(24.38)%

2.42%**

2.42%**

0.80%**

115%

3,098

March 31, 2008

22.98

.31

(1.36)

(1.05)

(.23)

(.70)

(.93)

(1.98)

21.00

(5.28)%

2.40%

2.40%

1.27%

320%

6,149

March 31, 2007

19.25

.39

3.46

3.85

(.12)

—

(.12)

3.73

22.98

20.01%

2.40%

2.40%

1.85%

373%

9,539

March 31, 2006

16.57

.10

2.90

3.00

—

(.32)

(.32)

2.68

19.25

18.30%

2.42%

2.41%

0.59%

454%

8,703

March 31, 2005

14.62

(.09)

2.52

2.43

(.47)

(.01)

(.48)

1.95

16.57

16.55%

2.37%

2.37%

(0.57)%

—

5,717

March 31, 2004

9.74

(1.18)

6.77

5.59

—

(.71)

(.71)

4.88

14.62

57.29%

2.47%

2.47%

(8.31)%

—

1,999

Europe 1.25x Strategy Fund H-Class

September 30, 2008D

22.26

.19

(5.55)

(5.36)

—

—

—

(5.36)

16.90

(24.08)%

1.71%**

1.71%**

1.73%**

115%

11,097

March 31, 2008

24.14

.57

(1.52)

(.95)

(.23)

(.70)

(.93)

(1.88)

22.26

(4.60)%

1.67%

1.67%

2.20%

320%

21,670

March 31, 2007

20.06

.59

3.61

4.20

(.12)

—

(.12)

4.08

24.14

20.95%

1.66%

1.66%

2.63%

373%

57,887

March 31, 2006

17.13

.22

3.03

3.25

—

(.32)

(.32)

2.93

20.06

19.17%

1.64%

1.63%

1.21%

454%

46,066

March 31, 2005

14.98

.05

2.58

2.63

(.47)

(.01)

(.48)

2.15

17.13

17.49%

1.61%

1.61%

0.28%

—

62,957

March 31, 2004

9.88

(1.65)

7.46

5.81

—

(.71)

(.71)

5.10

14.98

58.72%

1.73%

1.73%

(11.25)%

—

35,914

Japan 2x Strategy Fund A-Class

September 30, 2008D

25.12

.09

(7.02)

(6.93)

—

—

—

(6.93)

18.19

(27.59)%

1.52%**

1.52%**

0.75%**

—

127

March 31, 2008*

25.00

—§§

.12

.12

—

—

—

.12

25.12

0.48%

1.25%**

1.25%**

(0.12)%**

—

636

Japan 2x Strategy Fund C-Class

September 30, 2008D

25.10

(.02)

(6.95)

(6.97)

—

—

—

(6.97)

18.13

(27.77)%

2.27%**

2.27%**

(0.15)%**

—

256

March 31, 2008*

25.00

(.02)

.12

.10

—

—

—

.10

25.10

0.40%

2.21%**

2.21%**

(0.74)%**

—

240

Japan 2x Strategy Fund H-Class

September 30, 2008D

25.12

.05

(6.98)

(6.93)

—

—

—

(6.93)

18.19

(27.59)%

1.52%**

1.52%**

0.38%**

—

2,427

March 31, 2008*

25.00

—§§

.12

.12

—

—

—

.12

25.12

0.48%

1.44%**

1.44%**

0.17%**

—

5,243

Small-Cap Value Fund A-Class

September 30, 2008D

26.56

.28

(2.12)

(1.84)

—

—

—

(1.84)

24.72

(6.93)%

1.52%**

1.52%**

2.10%**

367%

232

March 31, 2008

35.54

.26

(8.97)

(8.71)

(.27)

—

(.27)

(8.98)

26.56

(24.54)%

1.53%

1.53%

0.82%

566%

2,945

March 31, 2007

33.40

.23

1.94

2.17

—

(.03)

(.03)

2.14

35.54

6.49%

1.51%

1.51%

0.66%

728%

3,929

March 31, 2006

28.22

(.03)

5.71

5.68

—

(.50)

(.50)

5.18

33.40

20.35%

1.46%

1.46%

(0.11)%

806%

335

March 31, 2005*

25.28

(.06)

3.13

3.07

—

(.13)

(.13)

2.94

28.22

12.14%

1.43%**

1.43%**

(0.37)%**

744%

714

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Income

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses

(Loss)

Rate

omitted)

Small-Cap Value Fund C-Class

September 30, 2008D

$25.71

$

.01

$

(1.88)

$

(1.87)

$

—

$

—

$

—

$

(1.87)

$23.84

(7.27)%

2.27%**

0.04%**

367%

$ 11,748

March 31, 2008

34.68

.28

(8.98)

(8.70)

(.27)

—

(.27)

(8.97)

25.71

(25.12)%

2.26%

0.99%

566%

14,040

March 31, 2007

32.85

(.05)

1.91

1.86

—

(.03)

(.03)

1.83

34.68

5.65%

2.26%

(0.16)%

728%

2,268

March 31, 2006

28.01

(.18)

5.52

5.34

—

(.50)

(.50)

4.84

32.85

19.29%

2.27%

(0.60)%

806%

18,779

March 31, 2005

25.59

(.24)

2.79

2.55

—

(.13)

(.13)

2.42

28.01

9.96%

2.21%

(0.89)%

744%

12,119

March 31, 2004*

25.00

(.05)

.64

.59

—

—

—

.59

25.59

2.36%

2.11%**

(1.68)%**

177%

2,207

Small-Cap Value Fund H-Class

September 30, 2008D

26.53

.14

(1.98)

(1.84)

—

—

—

(1.84)

24.69

(6.94)%

1.52%**

1.08%**

367%

21,363

March 31, 2008

35.51

.33

(9.04)

(8.71)

(.27)

—

(.27)

(8.98)

26.53

(24.56)%

1.48%

1.04%

566%

51,563

March 31, 2007

33.38

.15

2.01

2.16

—

(.03)

(.03)

2.13

35.51

6.46%

1.52%

0.46%

728%

10,478

March 31, 2006

28.24

.06

5.58

5.64

—

(.50)

(.50)

5.14

33.38

20.20%

1.50%

0.19%

806%

102,448

March 31, 2005

25.62

(.01)

2.76

2.75

—

(.13)

(.13)

2.62

28.24

10.73%

1.47%

(0.04)%

744%

75,748

March 31, 2004*

25.00

(.01)

.63

.62

—

—

—

.62

25.62

2.48%

1.41%**

(0.21)%**

177%

19,900

Mid-Cap Value Fund A-Class

September 30, 2008D

29.72

.24

(2.44)

(2.20)

—

—

—

(2.20)

27.52

(7.40)%

1.52%**

1.52%**

455%

595

March 31, 2008

36.58

.44

(6.37)

(5.93)

(.93)

—

(.93)

(6.86)

29.72

(16.45)%

1.53%

1.25%

297%

2,797

March 31, 2007

31.83

.34

4.57

4.91

—

(.16)

(.16)

4.75

36.58

15.45%

1.53%

1.00%

625%

4,744

March 31, 2006

27.49

.06

4.47

4.53

(—)§§

(.19)

(.19)

4.34

31.83

16.51%

1.48%

0.21%

558%

1,480

March 31, 2005*

24.58

.11

2.91

3.02

(—)§§

(.11)

(.11)

2.91

27.49

12.29%

1.42%**

0.69%**

731%

312

Mid-Cap Value Fund C-Class

September 30, 2008D

28.78

.20

(2.43)

(2.23)

—

—

—

(2.23)

26.55

(7.75)%

2.27%**

1.33%**

455%

1,067

March 31, 2008

35.75

.30

(6.34)

(6.04)

(.93)

—

(.93)

(6.97)

28.78

(17.15)%

2.28%

0.88%

297%

1,082

March 31, 2007

31.34

.11

4.46

4.57

—

(.16)

(.16)

4.41

35.75

14.61%

2.28%

0.33%

625%

8,326

March 31, 2006

27.29

(.10)

4.34

4.24

(—)§§

(.19)

(.19)

4.05

31.34

15.57%

2.25%

(0.35)%

558%

7,270

March 31, 2005

25.11

(.07)

2.36

2.29

(—)§§

(.11)

(.11)

2.18

27.29

9.12%

2.21%

(0.28)%

731%

8,831

March 31, 2004*

25.00

(.02)

.13

.11

—

—

—

.11

25.11

0.44%

2.11%**

(0.50)%**

172%

710

Mid-Cap Value Fund H-Class

September 30, 2008D

29.71

.25

(2.44)

(2.19)

—

—

—

(2.19)

27.52

(7.37)%

1.52%**

1.64%**

455%

5,681

March 31, 2008

36.58

.35

(6.29)

(5.94)

(.93)

—

(.93)

(6.87)

29.71

(16.48)%

1.54%

0.96%

297%

6,512

March 31, 2007

31.82

.46

4.46

4.92

—

(.16)

(.16)

4.76

36.58

15.49%

1.52%

1.39%

625%

76,513

March 31, 2006

27.49

.07

4.45

4.52

(—)§§

(.19)

(.19)

4.33

31.82

16.47%

1.48%

0.25%

558%

31,340

March 31, 2005

25.13

.21

2.26

2.47

(—)§§

(.11)

(.11)

2.36

27.49

9.83%

1.46%

0.77%

731%

115,660

March 31, 2004*

25.00

.01

.12

.13

—

—

—

.13

25.13

0.52%

1.41%**

0.19%**

172%

18,064

Large-Cap Value Fund A-Class

September 30, 2008D

20.00

.21

(3.36)

(3.15)

—

—

—

(3.15)

16.85

(15.75)%

1.52%**

2.14%**

778%

246

March 31, 2008

33.46

.49

(6.10)

(5.61)

(1.99)

(5.86)

(7.85)

(13.46)

20.00

(19.98)%

1.52%

1.67%

289%

4,269

March 31, 2007

29.12

.37

4.33

4.70

(.21)

(.15)

(.36)

4.34

33.46

16.21%

1.50%

1.17%

389%

5,348

March 31, 2006

26.56

.19

2.77

2.96

—

(.40)

(.40)

2.56

29.12

11.20%

1.47%

0.70%

1,054%

713

March 31, 2005*

24.68

.12

1.81

1.93

(—)§§

(.05)

(.05)

1.88

26.56

7.82%

1.43%**

0.77%**

747%

211

Large-Cap Value Fund C-Class

September 30, 2008D

19.20

.14

(3.22)

(3.08)

—

—

—

(3.08)

16.12

(16.04)%

2.27%**

1.46%**

778%

1,645

March 31, 2008

32.68

.14

(5.77)

(5.63)

(1.99)

(5.86)

(7.85)

(13.48)

19.20

(20.57)%

2.29%

0.48%

289%

1,838

March 31, 2007

28.67

.09

4.28

4.37

(.21)

(.15)

(.36)

4.01

32.68

15.31%

2.27%

0.29%

389%

21,075

March 31, 2006

26.38

.04

2.65

2.69

—

(.40)

(.40)

2.29

28.67

10.25%

2.26%

0.14%

1,054%

4,344

March 31, 2005

24.85

.01

1.57

1.58

(—)§§

(.05)

(.05)

1.53

26.38

6.35%

2.20%

0.03%

747%

4,636

March 31, 2004*

25.00

(.02)

(.13)

(.15)

—

—

—

(.15)

24.85

(0.60)%

2.10%**

(0.53)%**

202%

2,612

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Income

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses

(Loss)

Rate

omitted)

Large-Cap Value Fund H-Class

September 30, 2008D

$20.00

$

.22

$

(3.36)

$

(3.14)

$

—

$

—

$

—

$

(3.14)

$16.86

(15.70)%

1.52%**

2.40%**

778%

$ 12,491

March 31, 2008

33.46

.36

(5.97)

(5.61)

(1.99)

(5.86)

(7.85)

(13.46)

20.00

(19.98)%

1.53%

1.11%

289%

18,459

March 31, 2007

29.12

.35

4.35

4.70

(.21)

(.15)

(.36)

4.34

33.46

16.21%

1.51%

1.12%

389%

184,082

March 31, 2006

26.56

.23

2.73

2.96

—

(.40)

(.40)

2.56

29.12

11.20%

1.49%

0.82%

1,054%

56,005

March 31, 2005

24.87

.16

1.58

1.74

(—)§§

(.05)

(.05)

1.69

26.56

6.99%

1.47%

0.63%

747%

24,974

March 31, 2004*

25.00

.01

(.14)

(.13)

—

—

—

(.13)

24.87

(0.52)%

1.41%**

0.34%**

202%

8,094

Small-Cap Growth Fund A-Class

September 30, 2008D

27.43

(.11)

(.13)

(.24)

—

—

—

(.24)

27.19

(0.91)%

1.52%**

(0.78)%**

547%

226

March 31, 2008

32.61

(.13)

(3.72)

(3.85)

—

(1.33)

(1.33)

(5.18)

27.43

(12.27)%

1.52%

(0.40)%

834%

1,938

March 31, 2007

32.25

(.29)

.65

.36

—

—

—

.36

32.61

1.12%

1.56%

(0.93)%

623%

1,408

March 31, 2006

27.96

(.18)

5.27

5.09

—

(.80)

(.80)

4.29

32.25

18.41%

1.47%

(0.61)%

1,003%

943

March 31, 2005*

24.43

(.12)

3.90

3.78

—

(.25)

(.25)

3.53

27.96

15.49%

1.43%**

(0.74)%**

983%

76

Small-Cap Growth Fund C-Class

September 30, 2008D

26.65

(.20)

(.15)

(.35)

—

—

—

(.35)

26.30

(1.31)%

2.28%**

(1.40)%**

547%

1,759

March 31, 2008

31.94

(.51)

(3.45)

(3.96)

—

(1.33)

(1.33)

(5.29)

26.65

(12.88)%

2.29%

(1.57)%

834%

1,980

March 31, 2007

31.82

(.58)

.70

.12

—

—

—

.12

31.94

0.38%

2.32%

(1.83)%

623%

7,570

March 31, 2006

27.78

(.47)

5.31

4.84

—

(.80)

(.80)

4.04

31.82

17.63%

2.27%

(1.57)%

1,003%

5,972

March 31, 2005

25.33

(.44)

3.14

2.70

—

(.25)

(.25)

2.45

27.78

10.68%

2.21%

(1.58)%

983%

2,710

March 31, 2004*

25.00

(.04)

.37

.33

—

—

—

.33

25.33

1.32%

2.08%**

(1.31)%**

117%

2,505

Small-Cap Growth Fund H-Class

September 30, 2008D

27.45

(.08)

(.16)

(.24)

—

—

—

(.24)

27.21

(0.87)%

1.56%**

(0.57)%**

547%

17,742

March 31, 2008

32.62

(.26)

(3.58)

(3.84)

—

(1.33)

(1.33)

(5.17)

27.45

(12.23)%

1.53%

(0.79)%

834%

6,259

March 31, 2007

32.27

(.33)

.68

.35

—

—

—

.35

32.62

1.08%

1.53%

(1.05)%

623%

18,171

March 31, 2006

27.97

(.22)

5.32

5.10

—

(.80)

(.80)

4.30

32.27

18.44%

1.50%

(0.73)%

1,003%

73,489

March 31, 2005

25.34

(.23)

3.11

2.88

—

(.25)

(.25)

2.63

27.97

11.38%

1.46%

(0.84)%

983%

26,145

March 31, 2004*

25.00

(.02)

.36

.34

—

—

—

.34

25.34

1.36%

1.41%**

(0.85)%**

117%

2,544

Mid-Cap Growth Fund A-Class

September 30, 2008D

26.65

(.14)

(1.23)

(1.37)

—

—

—

(1.37)

25.28

(5.14)%

1.57%**

(0.98)%**

524%

4,842

March 31, 2008

30.72

(.27)

(1.42)

(1.69)

—

(2.38)

(2.38)

(4.07)

26.65

(6.26)%

1.52%

(0.88)%

736%

3,863

March 31, 2007

31.94

(.08)

.48

.40

—

(1.62)

(1.62)

(1.22)

30.72

1.36%

1.51%

(0.25)%

537%

2,777

March 31, 2006

26.85

(.17)

5.39

5.22

—

(.13)

(.13)

5.09

31.94

19.47%

1.48%

(0.60)%

681%

1,530

March 31, 2005*

23.91

(.09)

3.04

2.95

—

(.01)

(.01)

2.94

26.85

12.33%

1.46%**

(0.58)%**

1,211%

553

Mid-Cap Growth Fund C-Class

September 30, 2008D

25.79

(.25)

(1.15)

(1.40)

—

—

—

(1.40)

24.39

(5.43)%

2.31%**

(1.80)%**

524%

2,196

March 31, 2008

30.01

(.50)

(1.34)

(1.84)

—

(2.38)

(2.38)

(4.22)

25.79

(6.92)%

2.28%

(1.69)%

736%

1,426

March 31, 2007

31.47

(.42)

.58

.16

—

(1.62)

(1.62)

(1.46)

30.01

0.60%

2.27%

(1.40)%

537%

5,316

March 31, 2006

26.66

(.42)

5.36

4.94

—

(.13)

(.13)

4.81

31.47

18.55%

2.26%

(1.43)%

681%

3,305

March 31, 2005

25.15

(.37)

1.89

1.52

—

(.01)

(.01)

1.51

26.66

6.04%

2.21%

(1.43)%

1,211%

2,313

March 31, 2004*

25.00

(.05)

.20

.15

—

—

—

.15

25.15

0.60%

2.10%**

(1.50)%**

356%

1,172

Mid-Cap Growth Fund H-Class

September 30, 2008D

26.68

(.14)

(1.23)

(1.37)

—

—

—

(1.37)

25.31

(5.13)%

1.54%**

(0.96)%**

524%

7,628

March 31, 2008

30.75

(.28)

(1.41)

(1.69)

—

(2.38)

(2.38)

(4.07)

26.68

(6.25)%

1.51%

(0.92)%

736%

14,158

March 31, 2007

31.95

(.24)

.66

.42

—

(1.62)

(1.62)

(1.20)

30.75

1.42%

1.52%

(0.80)%

537%

7,715

March 31, 2006

26.86

(.19)

5.41

5.22

—

(.13)

(.13)

5.09

31.95

19.46%

1.50%

(0.63)%

681%

48,888

March 31, 2005

25.17

(.17)

1.87

1.70

—

(.01)

(.01)

1.69

26.86

6.75%

1.46%

(0.66)%

1,211%

23,733

March 31, 2004*

25.00

(.02)

.19

.17

—

—

—

.17

25.17

0.68%

1.41%**

(0.75)%**

356%

625

FINANCIAL HIGHLIGHTS (continued)

This table is presented to show selected data for a share outstanding throughout each period, and to assist shareholders in evaluating a Fund’s performance for the periods presented.

RATIOS TO

AVERAGE NET ASSETS:

Net Realized

Net Increase

NET ASSET

Net

and

(Decrease)

Distributions

Distributions

Net Increase

NET ASSET

Net

Net Assets,

VALUE,

Investment

Unrealized

in Net Asset

from Net

from Net

(Decrease) in

VALUE,

Total

Investment

Portfolio

End of

BEGINNING

Income

Gains (Losses)

Value Resulting

Investment

Realized

Total

Net Asset

END OF

Investment

Total

Net

Income

Turnover

Period (000’s

Period Ended

OF PERIOD

(Loss)†

on Investments

from Operations

Income

Gains

Distributions

Value

PERIOD

Return††

Expenses

Expenses

(Loss)

Rate

omitted)

Large-Cap Growth Fund A-Class

September 30, 2008D

$25.11

$

(.07)

$

(2.87)

$ (2.94)

$

—

$

—

$

—

$ (2.94)

$22.17

(11.71)%

1.52%**

1.52%**

(0.52)%**

220%

$

1,686

March 31, 2008

27.17

(.15)

(1.52)

(1.67)

—

(.39)

(.39)

(2.06)

25.11

(6.28)%

1.51%

1.51%

(0.53)%

450%

5,443

March 31, 2007

26.11

(.13)

1.19

1.06

—

—

—

1.06

27.17

4.06%

1.52%

1.52%

(0.51)%

1,029%

2,675

March 31, 2006

24.48

(.07)

1.72

1.65

—

(.02)

(.02)

1.63

26.11

6.76%

1.48%

1.48%

(0.29)%

1,276%

914

March 31, 2005*

23.44

.09

.95

1.04

—

(—)§§

(—)§§

1.04

24.48

4.45%

1.45%**

1.45%**

0.62%**

2,018%

74

Large-Cap Growth Fund C-Class

September 30, 2008D

24.35

(.15)

(2.78)

(2.93)

—

—

—

(2.93)

21.42

(12.03)%

2.27%**

2.27%**

(1.17)%**

220%

2,759

March 31, 2008

26.57

(.32)

(1.51)

(1.83)

—

(.39)

(.39)

(2.22)

24.35

(7.02)%

2.27%

2.27%

(1.21)%

450%

4,453

March 31, 2007

25.74

(.37)

1.20

.83

—

—

—

.83

26.57

3.22%

2.28%

2.28%

(1.44)%

1,029%

3,743

March 31, 2006

24.30

(.26)

1.72

1.46

—

(.02)

(.02)

1.44

25.74

6.03%

2.23%

2.23%

(1.04)%

1,276%

5,249

March 31, 2005

24.18

(.01)

.13

.12

—

(—)§§

(—)§§

.12

24.30

0.51%

2.20%

2.20%

(0.06)%

2,018%

19,703

March 31, 2004*

25.00

(.05)

(.77)

(.82)

—

—

—

(.82)

24.18

(3.28)%

2.08%**

2.08%**

(1.25)%**

296%

—

Large-Cap Growth Fund H-Class

September 30, 2008D

25.10

(.06)

(2.88)

(2.94)

—

—

—

(2.94)

22.16

(11.71)%

1.52%**

1.52%**

(0.47)%**

220%

7,579

March 31, 2008

27.16

(.17)

(1.50)

(1.67)

—

(.39)

(.39)

(2.06)

25.10

(6.28)%

1.53%

1.53%

(0.62)%

450%

11,937

March 31, 2007

26.11

(.14)

1.19

1.05

—

—

—

1.05

27.16

4.02%

1.52%

1.52%

(0.53)%

1,029%

49,087

March 31, 2006

24.49

(.05)

1.69

1.64

—

(.02)

(.02)

1.62

26.11

6.71%

1.49%

1.49%

(0.19)%

1,276%

32,258

March 31, 2005

24.18

.37

(.06)

.31

—

(—)§§

(—)§§

.31

24.49

1.30%

1.47%

1.47%

1.52%

2,018%

11,762

March 31, 2004*

25.00

(—)§§

(.82)

(.82)

—

—

—

(.82)

24.18

(3.28)%

1.41%**

1.41%**

(0.16)%**

296%

793

U.S. Government Money Market Fund Investor Class

September 30, 2008D

1.00

.01

—

.01

(.01)

—

(.01)

—

1.00

0.71%

0.92%**

0.92%**

1.42%**

—

1,118,020

March 31, 2008

1.00

.04

—

.04

(.04)

—

(.04)

—

1.00

3.76%

0.93%

0.93%

3.71%

—

978,584

March 31, 2007

1.00

.04

—

.04

(.04)

—

(.04)

—

1.00

4.26%

0.92%

0.92%

4.20%

—

982,347

March 31, 2006

1.00

.03

—

.03

(.03)

—

(.03)

—

1.00

2.79%

0.88%

0.88%

2.74%

—

975,088

March 31, 2005

1.00

.01

—

.01

(.01)

—

(.01)

—

1.00

0.82%

0.87%

0.87%

0.81%

—

1,196,009

March 31, 2004

1.00

—§§

—

—§§

(—)§§

—

(—)§§

—

1.00

0.18%

0.90%

0.90%

0.18%

—

1,057,062

U.S. Government Money Market Fund Advisor Class

September 30, 2008D

1.00

—§§

—

—§§

(—)§§

—

(—)§§

—

1.00

0.46%

1.42%**

1.42%**

0.91%**

—

178,220

March 31, 2008

1.00

.03

—

.03

(.03)

—

(.03)

—

1.00

3.24%

1.43%

1.43%

3.25%

—

159,111

March 31, 2007

1.00

.04

—

.04

(.04)

—

(.04)

—

1.00

3.75%

1.42%

1.42%

3.70%

—

204,068

March 31, 2006

1.00

.02

—

.02

(.02)

—

(.02)

—

1.00

2.28%

1.39%

1.39%

2.21%

—

151,828

March 31, 2005

1.00

—§§

—

—§§

(—)§§

—

(—)§§

—

1.00

0.43%

1.38%

1.25%

0.39%

—

245,890

March 31, 2004

1.00

—§§

—

—§§

(—)§§

—

(—)§§

—

1.00

0.01%

1.38%

1.08%

0.01%

—

249,599

U.S. Government Money Market Fund A-Class

September 30, 2008D

1.00

.01

—

.01

(.01)

—

(.01)

—

1.00

0.59%

1.17%**

1.17%**

1.17%**

—

34,253

March 31, 2008

1.00

.03

—

.03

(.03)

—

(.03)

—

1.00

3.51%

1.18%

1.18%

3.45%

—

21,174

March 31, 2007

1.00

.04

—

.04

(.04)

—

(.04)

—

1.00

4.01%

1.17%

1.17%

3.97%

—

18,779

March 31, 2006

1.00

.03

—

.03

(.03)

—

(.03)

—

1.00

2.51%

1.15%

1.15%

2.66%

—

14,324

March 31, 2005

1.00

.01

—

.01

(.01)

—

(.01)

—

1.00

0.59%

1.10%

1.10%

0.93%

—

7,335

March 31, 2004*

1.00

—

—

—

—

—

—

—

1.00

0.00%

0.00%**à

0.00%**à

0.00%**

—

1

U.S. Government Money Market Fund C-Class

September 30, 2008D

1.00

—§§

—

—§§

(—)§§

—

(—)§§

—

1.00

0.21%

1.92%**

1.92%**

0.42%**

—

142,062

March 31, 2008

1.00

.03

—

.03

(.03)

—

(.03)

—

1.00

2.74%

1.93%

1.93%

2.69%

—

121,436

March 31, 2007

1.00

.03

—

.03

(.03)

—

(.03)

—

1.00

3.24%

1.92%

1.92%

3.20%

—

120,415

March 31, 2006

1.00

.02

—

.02

(.02)

—

(.02)

—

1.00

1.76%

1.89%

1.89%

1.72%

—

131,045

March 31, 2005

1.00

—§§

—

—§§

(—)§§

—

(—)§§

—

1.00

0.19%

1.87%

1.51%

0.19%

—

155,668

March 31, 2004

1.00

—§§

—

—§§

(—)§§

—

(—)§§

—

1.00

0.01%

1.90%

1.08%

0.01%

—

131,704

FINANCIAL HIGHLIGHTS (concluded)

* Since the commencement of operations:

August 1, 2003 — Inverse NASDAQ-100^® Strategy Fund Advisor Class, Government Long Bond 1.2x Strategy Fund Advisor Class, and Inverse Government Long Bond Strategy Fund Advisor Class;

February 20, 2004 — Inverse Mid-Cap Strategy Fund C-Class and H-Class, Inverse Russell 2000^® Strategy Fund C-Class and H-Class, Small-Cap Value Fund C-Class and H-Class, Mid-Cap Value C-Class and H-Class, Large-Cap

Value Fund C-Class and H-Class, Small-Cap Growth Fund C-Class and H-Class, Mid-Cap Growth Fund C-Class and H-Class, and Large-Cap Growth Fund C-Class and H-Class;

March 31, 2004 — Nova Fund A-Class, Inverse S&P 500 Strategy Fund A-Class, NASDAQ-100^® Fund A-Class, Inverse NASDAQ-100^® Strategy Fund A-Class, Mid-Cap 1.5x Strategy Fund A-Class, Inverse Mid-Cap Strategy Fund

A-Class, Russell 2000^® 1.5x Strategy Fund A-Class, Inverse Russell 2000^® Strategy Fund A-Class, Government Long Bond 1.2x Strategy Fund A-Class, Inverse Government Long Bond Strategy Fund A-Class, Europe 1.25x

Strategy Fund A-Class, and U.S. Government Money Market Fund A-Class;

September 1, 2004 — Small-Cap Value Fund A-Class, Mid-Cap Value Fund A-Class, Large-Cap Value Fund A-Class, Small-Cap Growth Fund A-Class, Mid-Cap Growth Fund A-Class, and Large-Cap Growth Fund A-Class;

May 31, 2006 — S&P 500 Fund A-Class, C-Class and H-Class and Russell 2000^® Fund A-Class, C-Class and H-Class;

April 16, 2007 — High Yield Strategy Fund A-Class, C-Class and H-Class and Inverse High Yield Strategy Fund A-Class, C-Class and H-Class;

February 22, 2008 —Japan 2x Strategy Fund A-Class, C-Class and H-Class.

** Annualized

† Calculated using the average daily shares outstanding for the period.

†† Total investment return does not reflect the impact of any applicable sales charges and has not been annualized.

††† Inverse S&P 500 Strategy Fund — Per share amounts for the periods ended March 31, 2004 through March 31, 2007 have been restated to reflect a 1:5 reverse stock split effective April 23, 2007.

à Expense ratios for the period ended March 31, 2004 are calculated for one day only and are not indicative of future class performance.

§ Operating Expenses exclude interest and dividend expense from securities sold short.

§§ Less than $.01 per share.

D  Unaudited

Prior to April 1, 2007, the Nova Fund, Inverse S&P 500 Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, and Inverse Government Long Bond Strategy Fund operated under a Master-Feeder Structure.

▲ Ratios represent combined net investment income of the former Master Portfolio and the Fund. Ratios shown under the caption “Net Investment Income (Loss)” for the year ended March 31, 2006 and preceding periods did

not reflect the net investment income of the former Master Portfolio. This has no effect on the Fund's net asset value, per share value or total increase (decrease) in net assets from operations during any period.

■ Expense ratios to average net assets include expenses of the corresponding former Master Portfolio for the year ended March 31, 2007 and preceding periods.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1.

Organization and Significant Accounting Policies

All equity securities for the morning NAV are valued at

Organization

the current sales price as of 10:45 a.m. on the valuation

The Rydex Series Funds (the “Trust”) is registered with

date. Equity securities listed on an exchange (NYSE or

the SEC under the Investment Company Act of 1940

American Stock Exchange) are valued at the last quoted

(the “1940 Act”) as a non-diversified, open-ended

sales price as of the close of business on the NYSE,

investment company. The Trust offers five separate

usually 4:00 p.m. on the valuation date for the afternoon

classes of shares, Investor Class Shares, Advisor Class

NAV. Equity securities listed on the NASDAQ market

Shares, A-Class Shares, C-Class Shares, and H-Class

system are valued at the NASDAQ Official Closing Price,

Shares. C-Class Shares have a 1% contingent deferred

usually as of 4:00 p.m. on the valuation date. Short-term

sales charge (“CDSC”) if shares are redeemed within 12

securities, if any, are valued at amortized cost, which

months of purchase. Sales of shares of each Class are

approximates market value.

made without a sales charge at the net asset value per

Listed options held by the Trust are valued at the their

share, with the exception of A-Class Shares. A-Class

last bid price for twice a day pricing or the Official

Shares are sold at net asset value, plus the applicable

Settlement Price listed by the exchange, usually as of 4:00

front-end sales charge, except for the U.S. Government

p.m. Over-the-Counter options held by the Trust are

Money Market Fund. The sales charge varies depending

valued using the average bid price obtained from one or

on the amount purchased, but will not exceed 4.75%.

more security dealers.

A-Class Share purchases of $1 million or more are

The value of futures contracts purchased and sold by the

exempt from the front-end sales charge but have a 1%

Trust is accounted for using the unrealized gain or loss

CDSC if shares are redeemed within 18 months of

on the contracts that is determined by marking the

purchase.

contracts to their current realized settlement prices.

At September 30, 2008, the Trust consisted of fifty-four

Financial futures contracts are valued as of the spot price

separate Funds: twenty-two Benchmark Funds, one

at 10:45 a.m. on the valuation date for the morning

Money Market Fund, eleven Alternative Strategy Funds,

pricing cycle. Financial futures contracts are valued at the

seventeen Sector Funds, and three Essential Portfolio

last quoted sales price, usually as of 4:00 p.m. on the

Funds. This report covers the twenty-two Benchmark

valuation date for the afternoon NAV cycle. In the event

Funds and the Money Market Fund (the “Funds”), while

that the exchange for a specific futures contract closes

the Sector Funds, the Alternative Strategy Funds, and

earlier than 4:00 p.m., the futures contract is valued at

the Essential Portfolio Funds are contained in separate

the Official Settlement Price of the exchange. However,

reports.

the underlying securities from which the futures contract

Rydex Investments provides advisory, transfer agent and

value is derived are monitored until 4:00 p.m. to

administrative services, and accounting services to the

determine if fair valuation would provide a more

Trust. Rydex Distributors, Inc. (the “Distributor”) acts as

accurate valuation.

principal underwriter for the Trust. Both Rydex

Debt securities with a maturity greater than 60 days are

Investments and the Distributor are affiliated entities.

valued at the last traded fill price at the close of the

Significant Accounting Policies

Funds’ pricing cycle, unless no trades were executed. If

there are no trades, a security is valued at the reported

The following significant accounting policies are in

bid price, at the close of the Funds’ pricing cycle, usually

conformity with U.S. generally accepted accounting

4:00 p.m.

principles and are consistently followed by the Trust. All

time references are based on Eastern Time. The

Structured notes are valued in accordance with the terms

information contained in these notes may not apply to

of their agreement at the value of the underlying index

every Fund in the Trust.

close, usually 4:00 p.m., adjusted for any interest accruals

and financing charges. If the securities comprising the

A. The Trust calculates a NAV twice each business day,

underlying index cease trading before a Fund’s close of

first in the morning and again in the afternoon for the

business, the index will be fair valued with the use of an

Russell 2000^® Fund and the S&P 500 Fund. All other

appropriate market indicator.

Funds in the Trust will price at the afternoon NAV.

The morning NAV is calculated at 10:45 a.m., and the

Traditional open-end investment companies (“Mutual

afternoon NAV is calculated at the close of the New

Funds”) are valued at their NAV as of the close of

York Stock Exchange (“NYSE”), usually 4:00 p.m. The

business, usually 4:00 p.m. on the valuation date.

NAV is calculated using the current market value of

Exchange Traded Funds (“ETFs”) and closed-end

each Fund’s total assets as of the respective time of

investment companies are valued at the last quoted

calculation. These financial statements are based on the

sales price.

September 30, 2008 afternoon NAV.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

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135

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The value of domestic equity index and credit default

realized capital gains in all Funds, if any, are declared

swap agreements entered into by a Fund is accounted

and paid at least annually. Distributions are recorded on

for using the unrealized gain or loss on the agreements

the ex-dividend date and are determined in accordance

that is determined by marking the agreements to the

with income tax regulations which may differ from U.S.

last quoted value of the index that the swap pertains to

generally accepted accounting principles.

at the close of the NYSE, usually 4:00 p.m. The swap’s

D. When a Fund engages in a short sale of an equity or

market value is then adjusted to include dividends

fixed income security, an amount equal to the proceeds

accrued, financing charges and/or interest associated

is reflected as an asset and an equivalent liability. The

with the swap agreements.

amount of the liability is subsequently marked-to-market

The value of foreign equity and currency index swap

to reflect the market value of the short sale. The Fund

agreements entered into by a Fund is accounted for

maintains a segregated account of cash and/or securities

using the unrealized gain or loss on the agreements that

as collateral for short sales. The Fund is exposed to

is determined by marking the agreements to the price at

market risk based on the amount, if any, that the market

which orders are being filled at the close of the NYSE,

value of the security exceeds the market value of the

usually 4:00 p.m. In the event that no order is filled at

securities in the segregated account. Fees, if any, paid to

4:00p.m., the security dealer provides a fair value quote

brokers to borrow securities in connection with short

at which the swap agreement is valued. The swap’s

sales are considered part of the cost of short sale

market value is then adjusted to include dividends

transactions. In addition, the Fund must pay out the

accrued, financing charges and/or interest associated

dividend rate of the equity or coupon rate of the

with the swap agreements.

treasury obligation to the lender and records this as an

Investments for which market quotations are not readily

expense. Short dividends or interest expense is a cost

available are fair valued as determined in good faith by

associated with the investment objective of short sales

Rydex Investments under the direction of the Board of

transactions, rather than an operational cost associated

Trustees using methods established or ratified by the

with the day-to-day management of any mutual fund.

Board of Trustees. These methods include, but are not

E. Upon the purchase of an option by a Fund, the

limited to:(i) general information as to how these

premium paid is recorded as an investment, the value of

securities and assets trade; (ii) in connection with futures

which is marked-to-market daily. When a purchased

contracts and options thereupon, and other derivative

option expires, that Fund will realize a loss in the

investments, information as to how (a) these contracts

amount of the cost of the option. When a Fund enters

and other derivative investments trade in the futures or

into a closing sale transaction, that Fund will realize a

other derivative markets, respectively, and (b) the

gain or loss depending on whether the proceeds from

securities underlying these contracts and other

the closing sale transaction are greater or less than the

derivative investments trade in the cash market; and

cost of the option. When a Fund exercises a put option,

(iii)other information and considerations, including

that Fund will realize a gain or loss from the sale of the

current values in related-markets.

underlying security and the proceeds from such sale will

B. Securities transactions are recorded on the trade date

be decreased by the premium originally paid. When a

for financial reporting purposes. Realized gains and

Fund exercises a call option, the cost of the security

losses from securities transactions are recorded using

purchased by that Fund upon exercise will be increased

the identified cost basis. Proceeds from lawsuits related

by the premium originally paid. When a Fund writes

to investment holdings are recorded as realized gains in

(sells) an option, an amount equal to the premium

the respective Fund. Dividend income is recorded on the

received is entered in that Fund’s accounting records as

ex-dividend date, net of applicable taxes withheld by

an asset and equivalent liability. The amount of the

foreign countries. Interest income, including amortization

liability is subsequently marked-to-market to reflect the

of premiums and accretion of discount, is accrued on a

current value of the option written. When a written

daily basis. Distributions received from investments in

option expires, or if a Fund enters into a closing

REITs are recorded as dividend income on the ex-

purchase transaction, that Fund realizes a gain (or loss if

dividend date, subject to reclassification upon notice of

the cost of a closing purchase transaction exceeds the

the character of such distribution by the issuer.

premium received when the option was sold).

C. Distributions from net investment income are

F. The Trust may enter into stock and bond index futures

declared daily and paid monthly in the Government

contracts and options on such futures contracts. Futures

Long Bond 1.2x Strategy Fund and the U.S. Government

contracts are contracts for delayed delivery of securities

Money Market Fund. Distributions of net investment

at a specified future delivery date and at a specific price.

income in the remaining Funds and distributions of net

Upon entering into a contract, a Fund deposits and

136

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

maintains as collateral such initial margin as required by

maturity date. In addition, the contract may require

the exchange on which the transaction is effected.

periodic interest payments. Structured notes are used to

Pursuant to the contract, the Fund agrees to receive

obtain exposure to a market without owning or taking

from or pay to the broker an amount of cash equal to

physical custody of securities or commodities.

the daily fluctuation in value of the contract. Such

Fluctuations in value of the structured notes are

receipts or payments are known as variation margin and

recorded as unrealized gains and losses in the

are recorded by the Fund as unrealized gains or losses.

accompanying financial statements. Coupon payments

When the contract is closed, the Fund records a realized

are recorded as income while net payments are recorded

gain or loss equal to the difference between the value of

as net realized gains or losses.

the contract at the time it was opened and the value at

I. Investment securities and other assets and liabilities

the time it was closed.

denominated in foreign currencies are translated into

G. The Trust may enter into domestic equity index and

U.S. dollar amounts at the date of valuation. Purchases

domestic currency index swap agreements, which are

and sales of investment securities and income and

over the-counter contracts in which one party agrees to

expense items denominated in foreign currencies are

make periodic payments based on the change in market

translated into U.S. dollar amounts on the respective

value of a specified equity security, basket of equity

dates of such transactions. The Trust does not isolate

securities, equity index or domestic currency index, in

that portion of the results of operations resulting from

return for periodic payments based on a fixed or variable

changes in foreign exchange rates on investments from

interest rate or the change in market value of a different

the fluctuations arising from changes in market prices of

equity security, basket of equity securities, equity index

securities held. Such fluctuations are included with the

or domestic currency index. Swap agreements are used

net realized and unrealized gain and loss from

to obtain exposure to an equity or market without

investments.

owning or taking physical custody of securities. The swap

Reported net realized foreign exchange gains or losses

agreements are marked-to-market daily based upon

arise from sales of foreign currencies and currency gains

quotations from market makers and the change, if any, is

or losses realized between the trade and settlement

recorded as unrealized gain or loss. Payments received

dates on investment transactions. Net unrealized

or made as a result of an agreement or termination of

exchange gains and losses arise from changes in the fair

the agreement are recognized as realized gains or losses.

values of assets and liabilities other than investments in

The Trust may enter into credit default swap agreements

securities at the fiscal period end, resulting from changes

where one party, the protection buyer, makes an upfront

in exchange rates.

or periodic payment to a counterparty, the protection

J. The Trust may enter into forward currency contracts

seller, in exchange for the right to receive a contingent

primarily to hedge against foreign currency exchange

payment. The maximum amount of the payment may

rate risks on its non-U.S. dollar denominated investment

equal the notional amount, at par, of the underlying

securities. When entering into a forward currency

index or security as a result of a related credit event.

contract, a Fund agrees to receive or deliver a fixed

Upfront payments received or made by a Fund, are

quantity of foreign currency for an agreed-upon price on

amortized over the expected life of the agreement.

an agreed future date. These contracts are valued daily

Periodic payments received or paid by a Fund are

and the corresponding unrealized gain or loss on the

recorded as realized gains or losses. The credit default

contracts, as measured by the difference between the

contracts are marked-to-market daily based upon

forward foreign exchange rates at the dates of entry into

quotations from market makers and the change, if any,

the contracts and the forward rates at the reporting

is recorded as unrealized gain or loss. Payments

date, is included in the Statement of Assets and

received or made as a result of a credit event or

Liabilities. Realized and unrealized gains and losses are

termination of the contract are recognized, net of a

included in the Statement of Operations.

proportional amount of the upfront payment, as

realized gains or losses.

K. Certain U.S. Government and Agency Obligations are

traded on a discount basis; the interest rates shown on

H. The Trust may invest in structured notes, which are

the Schedules of Investments reflect the effective rates

over the-counter contracts linked to the performance of

at the time of purchase by the Funds. Other securities

an underlying benchmark such as interest rates, equity

bear interest at the rates shown, payable at fixed dates

markets, equity indices, commodities indices, corporate

through maturity. The Funds may also purchase

credits or foreign exchange markets. A structured note is

American Depository Receipts, U.S. Government

a type of bond in which an issuer borrows money from

securities, and enter into repurchase agreements.

investors and pays back the principal, adjusted for

performance of the underlying benchmark, at a specified

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

137

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

L. The Funds may leave cash overnight in their cash

such price increases is the principal risk of engaging in

account with the custodian, U.S. Bank. Periodically, a

short sales.

Fund may have cash due to the custodian bank as an

The risk associated with purchasing options is limited to

overdraft balance. A fee is incurred on this overdraft,

the premium originally paid. The risk in writing a covered

calculated by multiplying the overdraft by a rate

call option is that a Fund may forego the opportunity for

based on the federal funds rate. Segregated cash with

profit if the market price of the underlying security

the broker is held as collateral for investments in

increases and the option is exercised. The risk in writing

derivative instruments such as futures contracts and

a covered put option is that a Fund may incur a loss if

index swap agreements.

the market price of the underlying security decreases

M. Interest and dividend income, most expenses, all

and he option is exercised. In addition, there is the risk

realized gains and losses, and all unrealized gains and

that a Fund may not be able to enter into a closing

losses are allocated to the Classes based upon the value

transaction because of an illiquid secondary market or,

of the outstanding shares in each Class. Certain costs,

for over-the-counter options, because of the

such as distribution fees relating to A-Class Shares and

counterparty’s inability to perform.

H-Class Shares and service and distribution fees related

There are several risks in connection with the use of

to Advisor Class Shares and C-Class Shares, are charged

futures contracts. Risks may be caused by an imperfect

directly to specific Classes. In addition, certain expenses

correlation between movements in the price of the

have been allocated to the individual Funds in the Trust

instruments and the price of the underlying securities. In

on a pro rata basis upon the respective aggregate net

addition, there is the risk that a Fund may not be able to

assets of each Fund included in the Trust.

enter into a closing transaction because of an illiquid

N. The preparation of financial statements in conformity

secondary market.

with U.S. generally accepted accounting principles

There are several risks associated with the use of

requires management to make estimates and

structured notes. Structured notes are leveraged,

assumptions that affect the reported amount of assets

thereby providing an exposure to the underlying

and liabilities and disclosure of contingent assets and

benchmark greater than the face amount and increasing

liabilities at the date of the financial statements and the

the volatility of each note relative to the change in the

reported amounts of revenues and expenses during the

underlying linked financial instrument. A highly liquid

reporting period. Actual results could differ from these

secondary market may not exist for the structured notes

estimates.

a Fund invests in, which may make it difficult for that

O. Throughout the normal course of business, the Funds

Fund to sell the structured notes it holds at an

enter into contracts that contain a variety of

acceptable price or to accurately value them. In addition,

representations and warranties which provide general

structured notes are subject to the risk that the

indemnifications. The Funds’ maximum exposure under

counterparty to the instrument, or issuer, might not pay

these arrangements is unknown, as this would involve

interest when due or repay principal at maturity of the

future claims that may be made against the Funds

obligation. Although the Trust will not invest in any

and/or their affiliates that have not yet occurred.

structured notes unless Rydex Investments believes that

However, based on experience, the Funds expect the

the issuer is creditworthy, a Fund does bear the risk of

risk of loss to be remote.

loss of the amount expected to be received in the event

2.

Financial Instruments

of the default or bankruptcy of the issuer.

As part of its investment strategy, the Trust may utilize

There are several risks associated with the use of swap

short sales and a variety of derivative instruments

agreements that are different from those associated with

including, options, futures, options on futures, structured

ordinary portfolio securities transactions, due to the fact

notes and swap agreements. These investments involve,

they could be considered illiquid. Although the Trust will

to varying degrees, elements of market risk and risks in

not enter into any swap agreement unless Rydex

excess of the amounts recognized in the Statements of

Investments believes that the other party to the

Assets and Liabilities.

transaction is creditworthy, the Funds bear the risk of

loss of the amount expected to be received under a

Short sales are transactions in which a Fund sells an

swap agreement in the event of the default or

equity or fixed income security it does not own. If the

bankruptcy of the agreement counterparty.

security sold short decreases in price between the time

the Fund sells the security and closes its short position,

There are several risks associated with credit default

that Fund will realize gain on the transaction. Conversely,

swaps. Credit default swaps involve the exchange of a

if the security increases in price during the period, that

fixed-rate premium for protection against the loss in

Fund will realize a loss on the transaction. The risk of

value of an underlying debt instrument in the event of a

138

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

defined credit event (such as payment default or

Rydex Investments also provides accounting services to

bankruptcy). Under the terms of the swap, one party acts

the Trust for fees calculated at an annualized rate of

as a “guarantor,” receiving a periodic payment that is a

0.10% on the first $250 million of the average daily net

fixed percentage applied to a notional principal amount.

assets, 0.075% on the next $250 million of the average

In return, the party agrees to purchase the notional

daily net assets, 0.05% on the next $250 million of the

amount of the underlying instrument, at par, if a credit

average daily net assets, and 0.03% on the average daily

event occurs during the term of the swap. A Fund may

net assets over $750 million of each Fund.

enter into credit default swaps in which that Fund or its

Rydex Investments engages external service providers to

counterparty acts as guarantor. By acting as the

perform other necessary services to the Trust, such as

guarantor of a swap, that Fund assumes the market and

accounting and auditing services, legal services, printing

credit risk of the underlying instrument, including

and mailing, etc., on a pass-through basis. Such

liquidity and loss of value.

expenses vary from Fund to Fund and are allocated to

In conjunction with the use of short sales, options,

the Funds based on relative net assets. Organizational

futures, options on futures, structured notes and swap

and setup costs for new Funds are paid by the Trust.

agreements, the Funds are required to maintain collateral

The Trust has adopted a Distribution and Shareholder

in various forms. The Funds use, where appropriate,

Services Plan applicable to Advisor Class Shares and

depending on the financial instrument utilized and the

a Distribution Plan applicable to A-Class Shares and

broker involved, margin deposits at the broker, cash

H-Class Shares for which the Distributor and other firms

and/or securities segregated at the custodian bank,

that provide distribution and/or shareholder services

discount notes, or the repurchase agreements allocated

(“Service Providers”) may receive compensation. If a

to each Fund.

Service Provider provides distribution services, the Trust

The risks inherent in the use of short sales, options,

will pay distribution fees to the Distributor at an annual

futures contracts, options on futures contracts, structured

rate not to exceed 0.25% of average daily net assets,

notes, and swap agreements, include i) adverse changes

pursuant to Rule 12b-1 of the 1940 Act. The Distributor,

in the value of such instruments; ii) imperfect correlation

in turn, will pay the Service Provider out of its fees. The

between the price of the instruments and movements in

Distributor may, at its discretion, retain a portion of such

the price of the underlying securities, indices, or futures

payments to compensate itself for distribution services.

contracts; iii) the possible absence of a liquid secondary

With regard to Advisor Class Shares only, if a Service

market for any particular instrument at any time; and iv)

Provider provides shareholders services, the Distributor

the potential of counterparty default. The Trust has

will receive shareholder servicing fees from the Trust at

established strict counterparty credit guidelines and

an annual rate not to exceed 0.25% of average daily net

enters into transactions only with financial institutions of

assets. The Distributor, in turn, will pay the Service

investment grade or better.

Provider out of its fees.

3.

Fees And Other Transactions With Affiliates

The Trust has adopted a separate Distribution and

Under the terms of an investment advisory contract, the

Shareholder Services Plan applicable to its C-Class

Trust pays Rydex Investments investment advisory fees

Shares that allows the Funds to pay annual distribution

calculated at an annualized rate of 0.50% of the average

and service fees of 1.00% of the Funds’ C-Class Shares

daily net assets of the Government Long Bond 1.2x

average daily net assets. The annual 0.25% service fee

Strategy Fund and the U.S. Government Money Market

compensates the shareholder’s financial advisor for

Fund; 0.75% of the average daily net assets of the Nova

providing on-going services to the shareholder. The

Fund, S&P 500 Fund, High Yield Fund, Inverse High Yield

annual 0.75% distribution fee reimburses the Distributor

Fund, NASDAQ-100^® Fund, Russell 2000^® Fund, Japan

for paying the shareholder’s financial advisor an ongoing

2x Strategy Fund, Small-Cap Value Fund, Mid-Cap Value

sales commission. The Distributor advances the first

Fund, Large-Cap Value Fund, Small-Cap Growth Fund,

year’s service and distribution fees to the Financial Advisor.

Mid-Cap Growth Fund, and the Large-Cap Growth Fund;

The Distributor retains the service and distribution fees

and 0.90% of the average daily net assets of the

on accounts with no authorized dealer of record.

remaining Funds covered in this report.

During the period ended September 30, 2008, the

Rydex Investments provides transfer agent and

Distributor retained sales charges of $557,030 relating to

administrative services to the Trust for fees calculated at

sales of A-Class Shares of the Trust.

an annualized rate of 0.20% of the average daily net

During the period ended September 30, 2008, Rydex

assets of the Government Long Bond 1.2x Strategy Fund

Investments reimbursed the Japan 2x Strategy Fund in

and the U.S. Government Money Market Fund; and

the amount of $17,395 ($0.127 per share) related to

0.25% of the average daily net assets for the remaining

estimated losses on amounts receivable from Lehman

Funds covered in this report.

Brothers Finance S.A. and certain of its affiliates.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

139

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Certain officers and trustees of the Trust are also officers of Rydex Investments and the Distributor.

4.

Federal Income Tax Information

The Funds intend to comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated

investment companies and will distribute substantially all net investment income and capital gains to shareholders.

Therefore, no Federal income tax provision has been recorded.

The Funds adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 Accounting for Uncertainty in

Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured,

presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be

taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likelythan-not” of

being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold

would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds’ tax positions

taken on federal income tax returns for all open tax years for purposes of complying with FIN 48, and has concluded that

no provision for income tax was required in the Funds’ financial statements.

The Funds file U.S. federal income tax returns and returns in various foreign jurisdictions in which they invest. While the

statute of limitations remains open to examine the Funds’ U.S. federal income tax returns filed for the fiscal years 2004 to

2007, no examinations are in progress or anticipated at this time.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ

from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for

derivatives, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses,

and excise tax regulations.

Permanent book and tax basis differences, if any, will result in reclassifications. This includes net operating losses not

utilized during the current period, capital loss carry forward expired, and the utilization of earnings and profits distributed

to the shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. These

reclassifications have no effect on net assets or net asset values per share. Any undistributed ordinary income or long-term

capital gain remaining at fiscal year end is distributed in the following year.

The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the

statement of operations. During the period, the Funds did not incur any interest or penalties.

At September 30, 2008, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all

securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for

which there was an excess of tax cost over value were as follows:

Tax

Tax

Net

Tax

Unrealized

Unrealized

Unrealized

Fund

Cost

Gain

Loss

Gain (Loss)

Nova Fund

$

84,355,740

$

13,955,878

$

(6,286,463)

$

7,669,415

S&P 500 Fund

152,171,099

1,124,169

(8,668,786)

(7,544,617)

Inverse S&P 500 Strategy Fund

311,195,817

—

—

—

NASDAQ-100^® Fund

392,525,006

212,173,553

(25,372,485)

186,801,068

Inverse NASDAQ-100^® Strategy Fund

67,175,468

—

—

—

Mid-Cap 1.5x Strategy Fund

17,467,160

640,204

(1,462,948)

(822,744)

Inverse Mid-Cap Strategy Fund

3,732,213

—

—

—

Russell 2000^® 1.5x Strategy Fund

25,826,644

1,406,469

(1,535,081)

(128,612)

Russell 2000^® Fund

41,942,786

108,295

(786,303)

(678,008)

Inverse Russell 2000^® Strategy Fund

39,944,801

—

—

—

Government Long Bond 1.2x Strategy Fund

49,410,919

1,061,190

—

1,061,190

Inverse Government Long Bond Strategy Fund

454,372,848

—

(55,852)

(55,852)

High Yield Strategy Fund

21,972,507

—

—

—

Inverse High Yield Strategy Fund

15,841,036

—

—

—

Europe 1.25x Strategy Fund

14,668,266

340,819

(502,936)

(162,117)

Japan 2x Strategy Fund

428,485

—

—

—

Small-Cap Value Fund

34,893,262

1,780,280

(1,482,122)

298,158

Mid-Cap Value Fund

6,778,883

802,390

(96,229)

706,161

140

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

Tax

Tax

Net

Tax

Unrealized

Unrealized

Unrealized

Fund

Cost

Gain

Loss

Gain (Loss)

Large-Cap Value Fund

$

14,620,079

$

1,003,212

$

(752,045)

$

251,167

Small-Cap Growth Fund

21,985,037

—

(1,364,836)

(1,364,836)

Mid-Cap Growth Fund

13,202,359

2,016,488

(335,989)

1,680,499

Large-Cap Growth Fund

11,273,085

1,537,043

(572,108)

964,935

U.S.Government Money Market Fund

1,569,900,143

—

—

—

5.

Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested

in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and/or U.S. Government

Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value

exceeds by, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata

share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

The repurchase agreements executed by the joint account and outstanding as of September 30, 2008, were as follows:

Counterparty

Terms of Agreement

Face Value

Market Value

Repurchase Price

Morgan Stanley

0.15% due 10/01/08

$682,099,856

$

682,099,856

$

682,102,698

Mizuho Financial Group, Inc.

0.26% due 10/01/08

565,000,000

565,000,000

565,004,081

Morgan Stanley

0.10% due 10/01/08

400,000,000

400,000,000

400,001,111

Credit Suisse Group

0.25% due 10/01/08

88,479,252

88,479,252

88,479,866

$1,735,579,108

$1,735,587,756

As of September 30, 2008, the collateral for the repurchase agreements in the joint account was as follows:

Security Type

Maturity Dates

Range of Rates

Par Value

Market Value

U.S. Treasury Notes

12/31/08 - 08/15/17

3.375% - 4.750%

-->

3.375% - 4.750%

$793,096,500

$

816,275,910

U.S. TIP Bond

04/15/28

3.625%

289,705,400

474,835,309

U.S. Treasury Bills

10/02/08 - 09/24/09

—

252,540,300

251,799,789

U.S. Treasury Bonds

05/15/16 - 04/15/28

3.625% - 7.250%

176,171,900

227,466,324

$1,770,377,332

In the event of counterparty default, the Funds have the right to collect the collateral to offset losses incurred. There is

potential loss to the Funds in the event the Funds are delayed or prevented from exercising their rights to dispose of the

collateral securities, including the risk of a possible decline in the value of the underlying securities during the period while

the Funds seek to assert their rights. The Funds’ investment advisor, acting under the supervision of the Board of Trustees,

reviews the value of the collateral and the creditworthiness of those banks and dealers with which the Funds enter into

repurchase agreements to evaluate potential risks.

6.

Fair Value Measurement

The Funds adopted Statement of Financial Accounting Standard No. 157 (“FAS 157”) Fair Value Measurement which

provided enhanced guidance for using fair value to measure assets and liabilities. The standard requires companies to

provide expanded information about the assets and liabilities measured at fair value and the potential effect of these fair

valuations on an entity’s financial performance. The standard does not expand the use of fair value in any new

circumstances, but provides clarification on acceptable fair valuation methods and applications.

Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three

broad levels:

Level 1 — quoted prices in active markets for identical securities.

Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment

speeds, credit risk, etc.).

Level 3 — significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of

investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with

investing in those securities.

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

141

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The following table summarizes the inputs used to value the Funds’ net assets as of September 30, 2008:

Level 1

Level 2

Level 3

Level 1

Other

Level 2

Other

Level 3

Other

Investments

Financial

Investments

Financial

Investments

Financial

Fund

In Securities

Instruments

In Securities

Instruments

In Securities

Instruments

Total

Assets

Nova Fund

$

92,025,155

$

—

$

—

$

—

$

—

$

—

$

92,025,155

S&P 500 Fund

144,626,482

—

—

—

—

—

144,626,482

Inverse S&P 500

Strategy Fund

112,395,018

8,530,334

198,800,799

—

—

—

319,726,151

NASDAQ-100^® Fund

579,326,074

—

—

—

—

—

579,326,074

Inverse NASDAQ-100^®

Strategy Fund

67,175,468

3,716,816

—

—

—

—

70,892,284

Mid-Cap 1.5x

Strategy Fund

16,644,416

—

—

—

—

—

16,644,416

Inverse Mid-Cap

Strategy Fund

3,732,213

—

—

—

—

—

3,732,213

Russell 2000^® 1.5x

Strategy Fund

25,698,032

—

—

—

—

—

25,698,032

Russell 2000^® Fund

41,264,778

—

—

—

—

—

41,264,778

Inverse Russell 2000^®

Strategy Fund

39,944,801

583,219

—

—

—

—

40,528,020

Government Long Bond

1.2x Strategy Fund

50,472,109

—

—

—

—

—

50,472,109

Inverse Government

Long Bond

Strategy Fund

81,214,969

10,541,695

373,102,027

—

—

—

464,858,691

High Yield

Strategy Fund

21,972,507

34,084

—

—

—

—

22,006,591

Inverse High Yield

Strategy Fund

15,841,036

646,535

—

—

—

—

16,487,571

Europe 1.25x

Strategy Fund

14,506,149

—

—

—

—

—

14,506,149

Japan 2x Strategy Fund

428,485

—

—

—

—

—

428,485

Small-Cap Value Fund

35,191,420

—

—

—

—

—

35,191,420

Mid-Cap Value Fund

7,485,044

—

—

—

—

—

7,485,044

Large-Cap Value Fund

14,871,246

—

—

—

—

—

14,871,246

Small-Cap Growth Fund

20,620,201

—

—

—

—

—

20,620,201

Mid-Cap Growth Fund

14,882,858

—

—

—

—

—

14,882,858

Large-Cap Growth Fund

12,238,020

—

—

—

—

—

12,238,020

U.S. Government Money

Market Fund

1,569,900,143

—

—

—

—

—

1,569,900,143

Liabilities

Nova Fund

—

1,535,967

—

—

—

—

1,535,967

S&P 500 Fund

—

1,220,494

—

—

—

—

1,220,494

Inverse S&P 500

Strategy Fund

—

—

—

—

—

—

—

NASDAQ-100^® Fund

—

733,121

—

—

—

—

733,121

Inverse NASDAQ-100^®

Strategy Fund

—

—

—

—

—

—

—

Mid-Cap 1.5x

Strategy Fund

—

767,535

—

—

—

—

767,535

Inverse Mid-Cap

Strategy Fund

—

2,962

—

—

—

—

2,962

Russell 2000^® 1.5x

Strategy Fund

—

552,446

—

—

—

—

552,446

Russell 2000^® Fund

—

417,909

—

—

—

—

417,909

Inverse Russell 2000^®

Strategy Fund

—

—

1,584

—

—

—

1,584

Government Long Bond

1.2x Strategy Fund

—

14,318

—

—

—

—

14,318

Inverse Government

Long Bond

Strategy Fund

—

—

—

—

—

—

—

High Yield

Strategy Fund

—

464,871

—

—

—

—

464,871

Inverse High Yield

Strategy Fund

—

—

—

—

—

—

—

Europe 1.25x

Strategy Fund

—

—

—

108,587

—

—

108,587

Japan 2x Strategy Fund

—

—

—

121,923

—

—

121,923

Small-Cap Value Fund

—

—

—

—

—

—

—

Mid-Cap Value Fund

—

—

—

—

—

—

—

Large-Cap Value Fund

—

—

—

—

—

—

—

Small-Cap Growth Fund

—

—

—

—

—

—

—

Mid-Cap Growth Fund

—

—

—

—

—

—

—

Large-Cap Growth Fund

—

—

—

—

—

—

—

U.S. Government

Money Market Fund

—

—

—

—

—

—

—

142

|

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

7.

Securities Transactions

During the period ended September 30, 2008, the cost of purchases and proceeds from sales of investment securities,

excluding short term and temporary cash investments, were:

Inverse

Inverse

Inverse

Nova

S&P 500

S&P 500

NASDAQ-100^®

NASDAQ-100^®

Mid-Cap 1.5x

Mid-Cap

Fund

Fund

Strategy Fund

Fund

Strategy Fund

Strategy Fund

Strategy Fund

Purchases

$

87,301,924

$124,809,383

$

—

$246,557,058

$

—

$

17,075,170

$

—

Sales

$110,012,341

$

60,192,186

$

—

$288,297,593

$

—

$

16,681,001

$

—

Inverse

Government

Inverse

Russell

Russell 2000^®

Long Bond

Government

Inverse

2000^® 1.5x

Russell 2000^®

Strategy

1.2x Strategy

Long Bond

High Yield

High Yield

Strategy Fund

Fund

Fund

Fund

Strategy Fund

Strategy Fund

Strategy Fund

Purchases

$

44,548,068

$

29,438,883

$

—

$630,061,491

$

866,834,024

$

—

$

—

Sales

$

48,014,236

$

16,697,951

$

—

$666,048,698

$1,175,501,526

$

—

$

—

Small-Cap

Mid-Cap

Large-Cap

Small-Cap

Mid-Cap

Europe 1.25x

Japan 2x

Value

Value

Value

Growth

Growth

Strategy Fund

Strategy Fund

Fund

Fund

Fund

Fund

Fund

Purchases

$

14,457,541

$

—

$  75,152,190

$

39,574,866

$

120,506,628

$

79,484,656

$ 212,456,440

Sales

$

17,537,753

$

—

$106,193,408

$

42,156,997

$

126,206,203

$

68,829,205

$ 214,242,658

Large-Cap  U.S. Government

Growth

Money Market

Fund

Fund

Purchases

$

59,870,373

$

—

Sales

$

66,771,641

$

—

THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

|

143

NOTES TO FINANCIAL STATEMENTS (continued)

8.

Share Transactions

The Trust is authorized to issue an unlimited number of shares (no par value). Transactions in shares for the periods presented were:

Shares Purchased

Purchased through Dividend Reinvestment

Shares Redeemed

Net Shares Purchased (Redeemed)

Period Ended

Year Ended

Period Ended

Year Ended

Period Ended

Year Ended

Period Ended

Year Ended

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

2008†

2008

2008†

2008

Nova Fund

Investor Class

5,446,050

10,763,436

—

75,348

(5,746,223)

(11,641,404)

(300,173)

(802,620)

Advisor Class

1,072,165

2,287,134

—

16,569

(1,023,354)

(2,764,194)

48,811

(460,491)

A-Class

250,113

486,941

—

7,031

(518,862)

(547,325)

(268,749)

(53,353)

C-Class

366,930

1,227,847

—

27,492

(590,077)

(1,509,363)

(223,147)

(254,024)

S&P 500 Fund

A-Class

516,965

717,124

—

124

(254,325)

(701,805)

262,640

15,443

C-Class

2,827,914

3,802,327

—

787

(2,845,143)

(3,568,990)

(17,229)

234,124

H-Class

13,719,661

8,954,070

—

4,221

(10,866,729)

(6,143,418)

2,852,932

2,814,873

Inverse S&P 500 Strategy Fund

Investor Class

7,344,820

11,985,693

—

259,306

(7,074,146)

(45,382,295)

270,674

(33,137,296)

Advisor Class

959,934

1,435,780

—

13,737

(905,031)

(4,310,762)

54,903

(2,861,245)

A-Class

716,557

724,012

—

10,606

(309,036)

(2,065,981)

407,521

(1,331,363)

C-Class

829,659

3,180,263

—

34,413

(1,088,147)

(8,351,679)

(258,488)

(5,137,003)

NASDAQ-100^®  Fund

Investor Class

24,289,419

42,755,463

—

—

(27,489,202)

(44,366,095)

(3,199,783)

(1,610,632)

Advisor Class

5,710,521

11,133,034

—

—

(5,554,240)

(10,611,159)

156,281

521,875

A-Class

529,751

1,224,853

—

—

(630,762)

(1,016,650)

(101,011)

208,203

C-Class

5,813,869

7,582,203

—

—

(5,684,251)

(7,547,831)

129,618

34,372

Inverse NASDAQ-100^® Strategy Fund

Investor Class

4,528,245

13,266,797

—

121,160

(4,742,168)

(15,402,931)

(213,923)

(2,014,974)

Advisor Class

66,260

584,179

—

4,466

(204,722)

(945,671)

(138,462)

(357,026)

A-Class

168,029

486,070

—

8,211

(104,451)

(599,900)

63,578

(105,619)

C-Class

1,268,613

2,065,870

—

20,816

(1,400,026)

(2,577,766)

(131,413)

(491,080)

Mid-Cap 1.5x Strategy Fund

A-Class

16,786

114,194

—

2,239

(26,996)

(135,455)

(10,210)

(19,022)

C-Class

386,992

499,616

—

15,201

(389,981)

(671,558)

(2,989)

(156,741)

H-Class

2,771,822

8,197,410

—

27,478

(2,808,473)

(8,461,182)

(36,651)

(236,294)

Inverse Mid-Cap Strategy Fund

A-Class

18,678

42,249

—

323

(24,551)

(32,269)

(5,873)

10,303

C-Class

113,850

603,381

—

366

(134,789)

(586,835)

(20,939)

16,912

H-Class

894,311

2,884,473

—

11,489

(2,062,644)

(2,097,722)

(1,168,333)

798,240

Russell 2000^® 1.5x Strategy Fund

A-Class

111,398

155,573

—

312

(205,906)

(163,625)

(94,508)

(7,740)

C-Class

331,064

794,721

—

1,065

(294,107)

(956,120)

36,957

(160,334)

H-Class

2,908,552

6,640,565

—

1,424

(2,915,254)

(7,309,867)

(6,702)

(667,878)

Russell 2000^® Fund

A-Class

204,631

253,665

—

114

(75,047)

(225,169)

129,584

28,610

C-Class

221,936

441,630

—

182

(211,205)

(439,576)

10,731

2,236

H-Class

7,953,518

4,122,727

—

924

(6,884,226)

(4,419,348)

1,069,292

(295,697)

† Unaudited

NOTES TO FINANCIAL STATEMENTS (continued)

Shares Purchased

Purchased through Dividend Reinvestment

Shares Redeemed

Net Shares Purchased (Redeemed)

Period Ended

Year Ended

Period Ended

Year Ended

Period Ended

Year Ended

Period Ended

Year Ended

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

2008†

2008

2008†

2008

Inverse Russell 2000^® Strategy Fund

A-Class

36,261

430,239

—

7,114

(134,007)

(545,832)

(97,746)

(108,479)

C-Class

474,776

847,999

—

7,889

(436,275)

(940,973)

38,501

(85,085)

H-Class

2,037,456

6,274,357

—

42,668

(2,296,272)

(6,618,998)

(258,816)

(301,973)

Government Long Bond 1.2x Strategy Fund

Investor Class

37,220,034

76,783,346

32,871

119,095

(38,187,579)

(78,150,310)

(934,674)

(1,247,869)

Advisor Class

31,907,429

16,143,329

22,140

37,347

(33,112,262)

(15,059,265)

(1,182,693)

1,121,411

A-Class

883,125

2,480,041

18,890

33,796

(1,470,057)

(1,867,065)

(568,042)

646,772

C-Class

6,991,191

7,398,417

6,875

20,651

(7,000,136)

(8,365,974)

(2,070)

(946,906)

Inverse Government Long Bond Strategy Fund

Investor Class

35,525,345

55,942,835

—

335,286

(34,625,269)

(58,292,241)

900,076

(2,014,120)

Advisor Class

22,220,366

8,604,796

—

50,624

(21,532,946)

(9,441,570)

687,420

(786,150)

A-Class

2,904,138

1,523,588

—

60,408

(1,499,922)

(2,969,787)

1,404,216

(1,385,791)

C-Class

3,170,416

3,335,250

—

279,343

(2,613,139)

(7,328,114)

557,277

(3,713,521)

High Yield Strategy Fund

A-Class

6,339,178

1,930,328*

—

3,634*

(6,423,328)

(1,500,841)*

(84,150)

433,121*

C-Class

88,267

170,873*

—

119*

(101,862)

(129,479)*

(13,595)

41,513*

H-Class

11,714,384

11,912,677*

—

9,814*

(13,914,972)

(9,274,669)*

(2,200,588)

2,647,822*

Inverse High Yield Strategy Fund

A-Class

79,922

350,188*

—

—*

(79,996)

(317,552)*

(74)

32,636*

C-Class

29,228

117,922*

—

—*

(29,256)

(60,000)*

(28)

57,922*

H-Class

2,679,202

3,107,955*

—

—*

(2,546,224)

(2,980,758)*

132,978

127,197*

Europe 1.25x Strategy Fund

A-Class

6,584

481,557

—

3,796

(32,574)

(858,069)

(25,990)

(372,716)

C-Class

2,736,573

6,793,370

—

21,736

(2,834,308)

(6,937,333)

(97,735)

(122,227)

H-Class

3,661,818

16,294,141

—

83,104

(3,978,652)

(17,801,896)

(316,834)

(1,424,651)

Japan 2x Strategy Fund

A-Class

11,710

27,605**

—

—**

(30,027)

(2,298)**

(18,317)

25,307**

C-Class

645,529

44,347**

—

—**

(640,968)

(34,802)**

4,561

9,545**

H-Class

1,353,100

528,213**

—

—**

(1,428,358)

(319,523)**

(75,258)

208,690**

Small-Cap Value Fund

A-Class

78,443

177,319

—

644

(179,941)

(177,608)

(101,498)

355

C-Class

568,172

1,259,064

—

258

(621,429)

(778,563)

(53,257)

480,759

H-Class

2,632,385

4,777,161

—

999

(3,710,554)

(3,129,747)

(1,078,169)

1,648,413

* Since the commencement of operations: April 16, 2007.

** Since the commencement of operations: February 22, 2008.

† Unaudited

NOTES TO FINANCIAL STATEMENTS (continued)

Shares Purchased

Purchased through Dividend Reinvestment

Shares Redeemed

Net Shares Purchased (Redeemed)

Period Ended

Year Ended

Period Ended

Year Ended

Period Ended

Year Ended

Period Ended

Year Ended

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

September 30,

March 31,

2008†

2008

2008†

2008

2008†

2008

2008†

2008

Mid-Cap Value Fund

A-Class

37,420

174,959

—

2,215

(109,932)

(212,737)

(72,512)

(35,563)

C-Class

494,128

845,951

—

1,257

(491,559)

(1,042,478)

2,569

(195,270)

H-Class

914,577

2,664,509

—

4,679

(927,332)

(4,541,599)

(12,755)

(1,872,411)

Large-Cap Value Fund

A-Class

112,978

279,929

—

42,908

(311,803)

(269,266)

(198,825)

53,571

C-Class

566,918

2,025,443

—

64,737

(560,586)

(2,639,246)

6,332

(549,066)

H-Class

6,127,921

9,372,167

—

96,773

(6,310,007)

(14,047,706)

(182,086)

(4,578,766)

Small-Cap Growth Fund

A-Class

30,823

262,368

—

3,278

(93,170)

(238,178)

(62,347)

27,468

C-Class

1,215,240

2,189,483

—

10,842

(1,222,653)

(2,363,032)

(7,413)

(162,707)

H-Class

2,152,573

3,527,056

—

7,158

(1,728,443)

(3,863,333)

424,130

(329,119)

Mid-Cap Growth Fund

A-Class

220,290

250,895

—

7,273

(173,716)

(203,641)

46,574

54,527

C-Class

2,267,597

1,561,001

—

5,107

(2,232,845)

(1,687,976)

34,752

(121,868)

H-Class

6,319,241

7,525,765

—

23,635

(6,548,545)

(7,269,598)

(229,304)

279,802

Large-Cap Growth Fund

A-Class

281,775

277,830

—

2,193

(422,478)

(161,710)

(140,703)

118,313

C-Class

267,242

4,408,801

—

7,740

(321,288)

(4,374,533)

(54,046)

42,008

H-Class

2,268,325

7,048,426

—

19,766

(2,401,829)

(8,400,012)

(133,504)

(1,331,820)

U.S. Government Money Market Fund

Investor Class

7,501,815,928

16,744,764,573

6,817,645

34,409,275

(7,369,166,884)

(16,782,939,166)

139,466,689

(3,765,318)

Advisor Class

2,381,240,439

3,541,832,288

740,023

5,026,273

(2,362,867,612)

(3,591,814,815)

19,112,850

(44,956,254)

A-Class

51,476,754

86,075,767

141,762

611,010

(38,553,187)

(84,291,559)

13,065,329

2,395,218

C-Class

694,433,242

1,349,987,737

247,073

3,040,004

(674,037,092)

(1,352,007,026)

20,643,223

1,020,715

† Unaudited

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

9.

Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the

statement of operations is shown net of rebates paid to borrowers and earnings on cash collateral investments shared with

the lending agent. Within this arrangement, the Funds act as the lender, U.S. Bank acts as the agent, and other approved

registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at a minimum of 100% of the

value of the securities on loan, which is initially held in a segregated account at U.S. Bank. Under the terms of the Funds’

securities lending agreement with U.S.Bank, cash collateral may be invested by U.S. Bank in certain high quality, liquid

investments. At September 30, 2008, the cash collateral investments consisted of a money market mutual fund and

repurchase agreement. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life

of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day;

any additional collateral required due to changes in security values is delivered to the Fund the next business day. Although

the collateral mitigates risk, the Funds could experience a delay in recovering its securities and a possible loss of income or

value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to

recover the securities from the borrower on demand.

The following represents a breakdown of the collateral:

MUTUAL FUND

Issuer

Shares

Market Value

Mount Vernon Securities Lending Trust

32,267,439

$32,267,439

Total Mutual Fund

$32,267,439

At September 30, 2008, the following Funds participated in securities lending and received cash collateral:

Fund

Cash Collateral

Value of Securities Loaned

Nova Fund

$

85,572

$

82,956

S&P 500 Fund

41,536

38,869

NASDAQ-100^® Fund

29,320,434

29,201,950

Mid-Cap 1.5x Strategy Fund

20,776

20,106

Russell 2000^® 1.5x Strategy Fund

221,094

215,417

Russell 2000^® Fund

3,879

3,833

Europe 1.25x Strategy Fund

305,120

280,907

Small-Cap Value Fund

1,516,971

1,525,145

Mid-Cap Value Fund

182,767

181,108

Large-Cap Value Fund

80,059

85,496

Small-Cap Growth Fund

480,527

450,023

Large-Cap Growth Fund

8,704

9,199

10. New Accounting Pronouncements

In March 2008, the FASB issued FAS 161, “Disclosures about Derivative Instruments and Hedging Activities.” The new

requirement is intended to improve disclosures around an entity’s derivatives activity and help investors understand how

entities use derivatives, how they are accounted for and how they affect the financial position and operations of that entity.

FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008.

11. NASDAQ Name Change

Effective April 1, 2008, the OTC Fund and the Inverse OTC Strategy Fund changed their Fund names to the

NASDAQ-100^® Fund and the Inverse NASDAQ-100^® Strategy Fund, respectively. The name change will have no impact

on the Funds’ investment objectives, tickers and CUSIPS.

12. Subsequent Event

U.S. Government Money Market Fund (the “Fund”) has filed a Guarantee Agreement with the United States Department

of the Treasury (the “Treasury”) to participate in the Treasury’s Temporary Guarantee Program for Money Market Funds (the

“Program”).

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)

Under the Program, the Treasury will guarantee the share price of shares of the Fund held by shareholders as of

September 19, 2008 at $1.00 per share if the Fund’s net asset value per share falls below $0.995 (a “Guarantee Event”)

and the Fund liquidates. Recovery under the Program is subject to certain conditions and limitations, including the following:

•

For shareholders of a Fund, the Program provides a guarantee for the lesser of (a) the number of Fund shares owned

by the shareholder as of the close of business on September 19, 2008, or (b) the number of Fund shares owned by the

shareholder on the date of a Guarantee Event.

•

The total amount of coverage available for all participants in the Program is limited to the amount of funds available

under the Federal Exchange Stabilization Fund at the time of a Guarantee Event (currently approximately $50 billion).

•

In order to recover, a Guarantee Event must occur during the term of the Program.

Fund shares acquired by investors after September 19, 2008 that increase the number of Fund shares the investor held as

of the close of business on September 19, 2008 are not eligible for protection under the Program. In addition, Fund shares

acquired by investors who did not hold Fund shares as of the close of business on September 19, 2008 are not eligible for

protection under the Program.

The Program will be in effect for a three month term expiring on December 18, 2008, after which the Secretary of the

Treasury will review the need for, and terms of, the Program. Participation in the initial three months of the Program

requires a payment to the Treasury in the amount of .01% of the value of all shares outstanding as of September 19, 2008,

which has been paid by the Fund. The Secretary may extend the Program through the close of business on September 18,

2009. If the Program is extended, the Fund will consider whether to continue to participate and pay any additional fees.

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held

in the Funds' portfolios is available, without charge and upon request, by calling 1-800-820-0888. This information is also

available from the EDGAR database on the SEC's website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period

ended June 30 is available without charge, upon request, by calling 1-800-820-0888. This information is also available from

the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on

Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed and

copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public

Reference Room may be obtained by calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to

shareholders, without charge and upon request, by calling 1-800-820-0888.

Rydex Investments Board Review and Approval of the Investment Advisory Agreement

The Advisory Agreements dated January 18, 2008 between Rydex Series Funds, on behalf of the Funds, and PADCO

Advisors, Inc. were last approved by shareholders at Special Meetings held on October 4, 2007, November 1, 2007,

January 31, 2008 and February 12, 2008. Subject to the terms and conditions provided for in the Advisory Agreements,

each Advisory Agreement remains in effect for an initial two year term from the date of the Agreement and remains in

effect for periods of one year thereafter subject to Board approval. Therefore, the Advisory Agreements are next

scheduled to be approved by the Board of Trustees at the Trust’s August 2009 Meeting.

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INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees all Rydex Investments, in which its members have no stated term of service, and continue to

serve after election until resignation. The Statement of Additional Information includes further information about Fund

Trustees and Officers, and can be obtained without charge by calling 1-800-820-0888.

All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell Rd., Suite 500, Rockville, MD 20850.

TRUSTEES AND OFFICERS

Length of Service

Name, Position and

As Trustee

Number of

––––––––––––––––––––––––––––––

Year of Birth

–––––––––––––––––––––––––––

(Year Began)

––––––––––––––––––––––––

Funds Overseen

Carl G. Verboncoeur*

Rydex Series Funds – 2004

158

Trustee, President (1952)

Rydex Variable Trust – 2004

Rydex Dynamic Funds – 2004

Rydex ETF Trust – 2004

Principal Occupations During Past Five Years: Treasurer of Rydex Specialized Products, LLC (2005 to present) Chief Executive

Officer of Rydex Specialized Products, LLC (2005 to 2008); Chief Executive Officer of Rydex Investments and Rydex Distributors,

Inc. (2003 to present); Executive Vice President of Rydex Investments (2000 to 2003)

Michael P. Byrum*

Rydex Series Funds – 2005

150

Trustee, Vice President

Rydex Variable Trust – 2005

(1970)

Rydex Dynamic Funds – 2005

Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Chief Investment Officer of Rydex Investments (2003 to present); Secretary of

Rydex Specialized Products, LLC (2005 to 2008); Vice President of Rydex Series Funds (1997 to present); Vice President of Rydex

Variable Trust (1998 to present); Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF Trust

(2002 to present); President and Trustee of Rydex Capital Partners SPhinX Fund (2003 to 2006); President of Rydex Investments

(2004 to present); Chief Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to 2004)

INDEPENDENT TRUSTEES

Length of Service

Name, Position and

As Trustee

Number of

––––––––––––––––––––––––––––––

Year of Birth

–––––––––––––––––––––––––––

(Year Began)

––––––––––––––––––––––––

Funds Overseen

John O. Demaret

Rydex Series Funds – 1997

150

Trustee, Chairman of the

Rydex Variable Trust – 1998

Board (1940)

Rydex Dynamic Funds – 1999

Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Retired

Corey A. Colehour

Rydex Series Funds – 1993

150

Trustee (1945)

Rydex Variable Trust – 1998

Rydex Dynamic Funds – 1999

Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Retired (2006 to present); Owner and President of Schield Management

Company, registered investment adviser (2005 to 2006); Senior Vice President of Marketing and Co-Owner of Schield

Management Company, registered investment adviser (1985 to 2005)

J. Kenneth Dalton

Rydex Series Funds – 1995

150

Trustee (1941)

Rydex Variable Trust – 1998

Rydex Dynamic Funds – 1999

Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Mortgage Banking Consultant and Investor, The Dalton Group

150

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THE RYDEX SERIES FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited) (concluded)

Length of Service

Name, Position and

As Trustee

Number of

––––––––––––––––––––––––

Year of Birth

–––––––––––––––––––––––––––

(Year Began)

––––––––––––––––––––––––

Funds Overseen

Werner E. Keller

Rydex Series Funds – 2005

150

Trustee (1940)

Rydex Variable Trust – 2005

Rydex Dynamic Funds – 2005

Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: Retired (2001 to present); Chairman, Centurion Capital Management (1991 to 2001)

Thomas F. Lydon, Jr.

Rydex Series Funds – 2005

150

Trustee (1960)

Rydex Variable Trust – 2005

Rydex Dynamic Funds – 2005

Rydex ETF Trust – 2005

Principal Occupations During Past Five Years: President, Global Trends Investments

Patrick T. McCarville

Rydex Series Funds – 1997

150

Trustee (1942)

Rydex Variable Trust – 1998

Rydex Dynamic Funds – 1999

Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Founder and Chief Executive Officer, Par Industries, Inc.

Roger Somers

Rydex Series Funds – 1993

150

Trustee (1944)

Rydex Variable Trust – 1998

Rydex Dynamic Funds – 1999

Rydex ETF Trust – 2003

Principal Occupations During Past Five Years: Owner, Arrow Limousine

EXECUTIVE OFFICERS

Name, Position and

Principal Occupations

–––––––––––––––––––––––

Year of Birth

–––––––––––––––––––––––––––––––––––

During Past Five Years

Nick Bonos*

Chief Financial Officer of Rydex Specialized Products, LLC (2005 to present);

Vice President and Treasurer (1963)

Vice President and Treasurer of Rydex Series Funds, Rydex Variable Trust,

Rydex Dynamic Funds, and Rydex ETF Trust (2003 to present); Senior Vice

President of Rydex Investments (2003 to present); Vice President and

Treasurer of Rydex Capital Partners SPhinX Fund (2003 to 2006)

Joanna M. Haigney*

Chief Compliance Officer of Rydex Series Funds, Rydex Variable Trust, and

Chief Compliance Officer and

Rydex Dynamic Funds (2004 to present); Secretary of Rydex Series Funds,

Secretary (1966)

Rydex Variable Trust, and Rydex Dynamic Funds (2000 to present); Secretary

of Rydex ETF Trust (2002 to present); Vice President of Compliance of Rydex

Investments (2000 to present); Secretary of Rydex Capital Partners SPhinX

Fund (2003 to 2006)

Joseph Arruda*

Assistant Treasurer of Rydex Series Funds, Rydex Variable Trust, Rydex

Assistant Treasurer (1966)

Dynamic Funds, Rydex ETF Trust (2006 to present); Senior Vice President of

Rydex Investments (2008 to present); Vice President of Rydex Investments

(2004 to 2008); Director of Accounting of Rydex Investments (2003 to 2004)

Paula Billos*

Controller of Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic

Controller (1974)

Funds, Rydex ETF Trust (2006 to present); Director of Fund Administration of

Rydex Investments (2001 to present)

* Officers of the Funds are deemed to be “interested persons” of the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as

this person is affiliated with Rydex Investments.

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9601 Blackwell Road, Suite 500

Rockville, MD 20850

www.rydexinvestments.com

800-820-0888

RBENF-SEMI-0908x0309