UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 21261
Rydex ETF Trust
--------------------------------------------
(Exact name of registrant as specified in charter)
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
--------------------------
(Address of principal executive offices) (Zip code)
Carl G. Verboncoeur
Rydex ETF Trust
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
----------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-301-296-5100
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Date of fiscal year end: October 31, 2007
-----------------
Date of reporting period: April 30, 2007
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
April 30, 2007
RYDEX ETF TRUST
SEMI-ANNUAL REPORT
RYDEX S&P EQUAL WEIGHT ETF
RYDEX RUSSELL TOP 50 ETF
RYDEX S&P 500 PURE VALUE ETF
RYDEX S&P 500 PURE GROWTH ETF
RYDEX S&P MIDCAP 400 PURE VALUE ETF
RYDEX S&P MIDCAP 400 PURE GROWTH ETF
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF
RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF
RYDEX S&P EQUAL WEIGHT ENERGY ETF
RYDEX S&P EQUAL WEIGHT FINANCIALS ETF
RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF
RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF
RYDEX S&P EQUAL WEIGHT MATERIALS ETF
RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF
RYDEX S&P EQUAL WEIGHT UTILITIES ETF
[GRAPHIC] [RYDEX INVESTMENTS LOGO]
SEMI-ANNUAL REPORT 1
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<Table>
LETTER TO OUR SHAREHOLDERS.................................. 2
FEES & EXPENSES............................................. 4
PORTFOLIO SUMMARY........................................... 5
SCHEDULE OF INVESTMENTS..................................... 22
STATEMENTS OF ASSETS AND LIABILITIES........................ 61
STATEMENTS OF OPERATIONS.................................... 65
STATEMENTS OF CHANGES IN NET ASSETS......................... 69
FINANCIAL HIGHLIGHTS........................................ 76
NOTES TO FINANCIAL STATEMENTS............................... 82
SUPPLEMENTAL INFORMATION.................................... 88
</Table>
SEMI-ANNUAL REPORT 2
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DEAR SHAREHOLDER,
The period ended April 30 was a positive environment for investors in nearly all
asset classes. Although economic growth in the U.S. showed unmistakable signs of
slowing, that was a positive development for both equity and fixed-income
investors as it mitigated inflationary pressures, allowing interest rates to
fall and take pressure off the Federal Reserve Bank. The global economy, on the
other hand, raced ahead as the rapidly growing economies of Brazil, Russia,
India and China continued their breakneck economic expansions. International
equity markets surged higher and were, once again, one of the most profitable
areas for investors over the past year.
Despite the fact that U.S. equity markets continued to be buffeted by
crosscurrents over high and volatile energy prices and uncertainty about the
future course of monetary policy, equity prices rose strongly during this
period. The bellwether S&P 500(R) Index rose nearly 8.60% on a total return
basis, with the Dow Jones Industrial Average up an even more robust 9.41%.
If there was an overriding theme to domestic equity markets during this period,
it was the ongoing debate over the future direction of interest rates. It is
frequently said that markets climb a wall of worry, and examination of return
patterns bears this out. Investors sought exposure to stocks, but they wanted to
play it safe at the same time. The defensive mindset favored value stocks. With
the possibility of a damaging market reversal present in investors' minds,
inexpensive stocks seemed to be the safer play. The S&P/Citigroup 500 Pure Value
Index, which combines the attributes of both size and low valuations, rose
12.07% compared to a gain of 8.41% for the S&P/Citigroup 600 Small Cap Pure
Growth Index. The 17.93% gain for the S&P 500 Utilities Index -- one of the
strongest of all 10 of the sector indices -- reinforced the defensive
orientation on the part of many investors during the period.
With the pullback in stock prices in late February and early March, equities are
more attractively valued now and have some room to rally going forward. That
said, we think the preference for defense at home and exposure to the rapidly
growing global economy is here for some time to come. Our outlook for stock
prices is further enhanced if the Fed begins to cut interest rates, something we
anticipate, but not until later this year.
We appreciate the trust you have placed in our firm's quality and integrity by
investing with us.
Sincerely,
/s/ DAVID C. REILLY, CFA
David Reilly, CFA
Director of Portfolio Strategies
All sources: Bloomberg
SEMI-ANNUAL REPORT 3
(This page intentionally left blank)
SEMI-ANNUAL REPORT 4
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SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Rydex ETF Trust, you incur transaction costs such as
creation and redemption fees or brokerage charges, and ongoing costs including
advisory fees and, if applicable, distribution fees. All other Trust expenses
are paid by the advisor. This Example is intended to help you understand your
ongoing costs (in dollars) of investing in a Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example in the table is based on an investment of $1,000 invested on
November 1, 2006 and held for the six months ended April 30, 2007.
ACTUAL EXPENSES
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you incurred over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
table under the heading entitled "Expenses Paid During the Six-Month Period" to
estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second table below provides information about hypothetical account values
and hypothetical expenses based on a Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not a Fund's actual
return. Thus, you should not use the hypothetical account values and expenses to
estimate the actual ending account balance or your expenses for the period.
Rather, these figures are provided to enable you to compare the ongoing costs of
investing in a Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as creation
and redemption fees, or brokerage charges. Therefore, the second table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING
VALUE VALUE PERIOD*
11/1/2006 4/30/2007 11/1/06 TO 4/30/07
--------- ---------- ------------------
ACTUAL
Rydex S&P Equal Weight ETF................................ $1,000.00 $1,105.60 $2.09
Rydex Russell Top 50 ETF.................................. $1,000.00 $1,066.60 $1.02
Rydex S&P 500 Pure Value ETF.............................. $1,000.00 $1,118.50 $1.84
Rydex S&P 500 Pure Growth ETF............................. $1,000.00 $1,082.40 $1.81
Rydex S&P MidCap 400 Pure Value ETF....................... $1,000.00 $1,132.30 $1.85
Rydex S&P MidCap 400 Pure Growth ETF...................... $1,000.00 $1,125.40 $1.84
Rydex S&P SmallCap 600 Pure Value ETF..................... $1,000.00 $1,085.60 $1.81
Rydex S&P SmallCap 600 Pure Growth ETF.................... $1,000.00 $1,082.20 $1.81
Rydex S&P Equal Weight Consumer Discretionary ETF**....... $1,000.00 $1,095.10 $2.58
Rydex S&P Equal Weight Consumer Staples ETF**............. $1,000.00 $1,095.00 $2.58
Rydex S&P Equal Weight Energy ETF**....................... $1,000.00 $1,160.60 $2.66
Rydex S&P Equal Weight Financials ETF**................... $1,000.00 $1,075.80 $2.56
Rydex S&P Equal Weight Health Care ETF**.................. $1,000.00 $1,148.90 $2.65
Rydex S&P Equal Weight Industrials ETF**.................. $1,000.00 $1,126.40 $2.62
Rydex S&P Equal Weight Materials ETF**.................... $1,000.00 $1,178.00 $2.69
Rydex S&P Equal Weight Technology ETF**................... $1,000.00 $1,084.00 $2.57
Rydex S&P Equal Weight Utilities ETF**.................... $1,000.00 $1,159.60 $2.66
HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES)
Rydex S&P Equal Weight ETF................................ $1,000.00 $1,022.81 $2.01
Rydex Russell Top 50 ETF.................................. $1,000.00 $1,023.80 $1.00
Rydex S&P 500 Pure Value ETF.............................. $1,000.00 $1,023.06 $1.76
Rydex S&P 500 Pure Growth ETF............................. $1,000.00 $1,023.06 $1.76
Rydex S&P MidCap 400 Pure Value ETF....................... $1,000.00 $1,023.06 $1.76
Rydex S&P MidCap 400 Pure Growth ETF...................... $1,000.00 $1,023.06 $1.76
Rydex S&P SmallCap 600 Pure Value ETF..................... $1,000.00 $1,023.06 $1.76
Rydex S&P SmallCap 600 Pure Growth ETF.................... $1,000.00 $1,023.06 $1.76
Rydex S&P Equal Weight Consumer Discretionary ETF**....... $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Consumer Staples ETF**............. $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Energy ETF**....................... $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Financials ETF**................... $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Health Care ETF**.................. $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Industrials ETF**.................. $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Materials ETF**.................... $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Technology ETF**................... $1,000.00 $1,022.32 $2.49
Rydex S&P Equal Weight Utilities ETF**.................... $1,000.00 $1,022.32 $2.49
</Table>
- ---------------
* Expenses are equal to the Fund's annualized expense ratio of 0.40%, 0.20%,
0.35%, 0.35%, 0.35%, 0.35%, 0.35%, 0.35%, 0.50%, 0.50%, 0.50%, 0.50%, 0.50%,
0.50%, 0.50%, 0.50% and 0.50% respectively, multiplied by the average account
value of the period, multiplied by days in the period, divided by 365.
** Fund commenced operations on 11/1/06
SEMI-ANNUAL REPORT 5
Rydex S&P Equal Weight ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ---------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ---------------------------------------------------------------------------------
MEDIMMUNE, INC. 0.33%
AMAZON.COM, INC. 0.30%
SCHERING-PLOUGH CORP. 0.26%
CUMMINS, INC. 0.25%
FIRST DATA CORP. 0.25%
SLM CORP. 0.24%
BAKER HUGHES, INC. 0.24%
PEABODY ENERGY CORP. 0.24%
WHIRLPOOL CORP. 0.24%
HARMAN INTERNATIONAL INDUSTRIES, INC. 0.23%
- ---------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 18.13
Consumer Discretionary 17.19
Information Technology 14.51
Industrials 11.58
Health Care 10.52
Consumer Staples 7.13
Utilities 6.68
Energy 6.31
Materials 5.96
Telecommunication Services 1.99
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 6
Rydex Russell Top 50 ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
EXXON MOBIL CORP. 7.26%
GENERAL ELECTRIC CO. 6.12%
CITIGROUP, INC. 4.25%
MICROSOFT CORP. 4.24%
AT&T, INC. 3.88%
BANK OF AMERICA CORP. 3.71%
PROCTER & GAMBLE CO. 3.37%
PFIZER, INC. 3.04%
JOHNSON & JOHNSON 2.98%
JPMORGAN CHASE & CO. 2.83%
- --------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 22.14
Information Technology 18.07
Health Care 14.36
Energy 11.89
Industrials 10.15
Consumer Staples 9.10
Consumer Discretionary 7.67
Telecommunication Services 6.62
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 7
Rydex S&P 500 Pure Value ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
FORD MOTOR CO. 2.32%
EMBARQ CORP. 1.93%
FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.70%
INTEGRYS ENERGY GROUP, INC. 1.66%
SUPERVALU, INC. 1.66%
SANMINA-SCI CORP. 1.57%
TYSON FOODS, INC. -- CLASS A 1.36%
DTE ENERGY CO. 1.22%
GENERAL MOTORS CORP. 1.22%
DILLARD'S, INC. -- CLASS A 1.20%
- --------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 21.74
Utilities 21.04
Consumer Discretionary 16.15
Materials 8.91
Consumer Staples 7.84
Telecommunication Services 7.56
Industrials 6.86
Information Technology 3.95
Health Care 3.65
Energy 2.30
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 8
Rydex S&P 500 Pure Growth ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
AMAZON.COM, INC. 1.84%
EXPRESS SCRIPTS, INC. 1.44%
HOSPIRA, INC. 1.42%
XTO ENERGY, INC. 1.30%
COACH, INC. 1.30%
GILEAD SCIENCES, INC. 1.26%
APOLLO GROUP, INC. -- CLASS A 1.22%
COVENTRY HEALTH CARE, INC. 1.22%
ZIMMER HOLDINGS, INC. 1.20%
COGNIZANT TECHNOLOGY SOLUTIONS CORP. -- CLASS A 1.19%
- --------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Health Care 22.46
Consumer Discretionary 19.94
Information Technology 17.85
Energy 9.20
Consumer Staples 9.04
Industrials 8.50
Financials 8.15
Materials 4.04
Utilities 0.82
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 9
Rydex S&P Midcap 400 Pure Value ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
AVIS BUDGET GROUP, INC. 2.84%
LEAR CORP. 2.39%
LYONDELL CHEMICAL CO. 2.12%
UNIVERSAL CORP. 2.00%
FURNITURE BRANDS INTERNATIONAL, INC. 1.94%
AVNET, INC. 1.90%
YRC WORLDWIDE, INC. 1.67%
FIRST AMERICAN CORP. 1.57%
ENERGY EAST CORP. 1.57%
WESTWOOD ONE, INC. 1.52%
- --------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Consumer Discretionary 23.68
Utilities 22.48
Materials 14.89
Financials 14.80
Industrials 10.02
Information Technology 6.99
Consumer Staples 6.26
Energy 0.51
Telecommunication Services 0.37
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 10
Rydex S&P Midcap 400 Pure Growth ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
AEROPOSTALE, INC. 1.79%
PAR PHARMACEUTICAL COS., INC. 1.71%
NVR, INC. 1.59%
CHICO'S FAS, INC. 1.56%
ENERGIZER HOLDINGS, INC. 1.46%
CYTYC CORP. 1.45%
CAREER EDUCATION CORP. 1.42%
DST SYSTEMS, INC. 1.41%
CORINTHIAN COLLEGES, INC. 1.38%
ITT EDUCATIONAL SERVICES, INC. 1.38%
- --------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Consumer Discretionary 29.37
Industrials 20.68
Health Care 19.51
Information Technology 8.87
Energy 8.68
Financials 8.50
Materials 2.33
Consumer Staples 1.71
Utilities 0.35
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 11
Rydex S&P Smallcap 600 Pure Value ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
STEEL TECHNOLOGIES, INC. 2.14%
LIBBEY, INC. 2.01%
RYERSON, INC. 1.97%
NASH FINCH CO. 1.97%
LANDAMERICA FINANCIAL GROUP, INC. 1.53%
CENTRAL VERMONT PUBLIC SERVICE CORP. 1.37%
POPE & TALBOT, INC. 1.35%
STANDARD MOTOR PRODUCTS, INC. 1.31%
CHESAPEAKE CORP. 1.28%
LA-Z-BOY, INC. 1.21%
- --------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Consumer Discretionary 23.79
Industrials 17.26
Financials 15.95
Materials 15.55
Utilities 9.47
Information Technology 6.71
Consumer Staples 6.39
Health Care 4.88
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 12
Rydex S&P Smallcap 600 Pure Growth ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- -------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- -------------------------------------------------------------------------------
BIOSITE, INC. 1.82%
VERTRUE, INC. 1.33%
FLIR SYSTEMS, INC. 1.32%
WEBEX COMMUNICATIONS, INC. 1.16%
PORTFOLIO RECOVERY ASSOCIATES, INC. 1.14%
BANKRATE, INC. 1.12%
PRE-PAID LEGAL SERVICES, INC. 1.11%
POSSIS MEDICAL, INC. 1.10%
J2 GLOBAL COMMUNICATIONS, INC. 1.10%
INTEGRA LIFESCIENCES HOLDINGS CORP. 1.09%
- -------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Health Care 20.26
Consumer Discretionary 19.79
Information Technology 19.43
Industrials 15.92
Financials 9.90
Energy 8.37
Consumer Staples 4.12
Materials 1.67
Telecommunication Services 0.54
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 13
Rydex S&P Equal Weight Consumer Discretionary ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ---------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ---------------------------------------------------------------------------------
AMAZON.COM, INC. 1.73%
WHIRLPOOL CORP. 1.34%
HARMAN INTERNATIONAL INDUSTRIES, INC. 1.33%
WENDY'S INTERNATIONAL, INC. 1.30%
GOODYEAR TIRE & RUBBER CO. 1.26%
SNAP-ON, INC. 1.21%
TRIBUNE CO. 1.21%
RADIOSHACK CORP. 1.19%
TIFFANY & CO. 1.19%
MCDONALD'S CORP. 1.19%
- ---------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Media 18.76
Specialty Retail 18.63
Household Durables 14.72
Hotels, Restaurants & Leisure 13.48
Multiline Retail 11.14
Textiles & Apparel 6.72
Leisure Equipment & Products 4.52
Automobiles 3.39
Internet & Catalog Retail 2.86
Auto Components 2.41
Diversified Consumer Services 2.28
Distributors 1.09
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 14
Rydex S&P Equal Weight Consumer Staples ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ---------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ---------------------------------------------------------------------------------
SUPERVALU, INC. 2.97%
CONSTELLATION BRANDS, INC. -- CLASS A 2.83%
ARCHER-DANIELS-MIDLAND CO. 2.81%
TYSON FOODS, INC. -- CLASS A 2.79%
WM. WRIGLEY JR. CO. 2.79%
KROGER CO. 2.70%
COCA-COLA CO. (THE) 2.69%
CVS CORP. 2.67%
ALTRIA GROUP, INC. 2.64%
COCA-COLA ENTERPRISES, INC. 2.64%
- ---------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Food Products 32.78
Food & Staples Retailing 23.26
Beverages 20.75
Household Products 10.30
Tobacco 7.71
Personal Products 5.20
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 15
Rydex S&P Equal Weight Energy ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ---------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ---------------------------------------------------------------------------------
BAKER HUGHES, INC. 3.42%
PEABODY ENERGY CORP. 3.36%
ROWAN COS., INC. 3.22%
SMITH INTERNATIONAL, INC. 3.21%
WEATHERFORD INTERNATIONAL LTD. 3.20%
ANADARKO PETROLEUM CORP. 3.16%
VALERO ENERGY CORP. 3.15%
NATIONAL-OILWELL VARCO, INC. 3.14%
CONSOL ENERGY, INC. 3.09%
SCHLUMBERGER LTD. 3.09%
- ---------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE GRAPH)
<Table>
Oil, Gas & Consumable Fuels 63.11
Energy Equipment & Services 36.89
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 16
Rydex S&P Equal Weight Financials ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
SLM CORP. 1.36%
JANUS CAPITAL GROUP, INC. 1.31%
CIT GROUP, INC. 1.22%
FRANKLIN RESOURCES, INC. 1.21%
XL CAPITAL LTD. -- CLASS A 1.21%
MERRILL LYNCH & CO., INC. 1.19%
MORGAN STANLEY 1.19%
UNUMPROVIDENT CORP. 1.19%
AFLAC, INC. 1.19%
GOLDMAN SACHS GROUP, INC. 1.17%
- --------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Insurance 27.34
Commercial Banks 20.29
Capital Markets 19.59
Real Estate Investments Trusts (REITs) 13.71
Thrifts & Mortgage Finance 7.70
Diversified Financial Services 6.74
Consumer Finance 3.58
Real Estate Management & Development 1.05
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 17
Rydex S&P Equal Weight Health Care ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
MEDIMMUNE, INC. 2.94%
SCHERING-PLOUGH CORP. 2.28%
MANOR CARE, INC. 2.04%
MERCK & CO., INC. 2.02%
BAUSCH & LOMB, INC. 2.01%
CELGENE CORP. 1.99%
GILEAD SCIENCES, INC. 1.98%
TENET HEALTHCARE CORP. 1.97%
EXPRESS SCRIPTS, INC. 1.96%
WYETH 1.94%
- --------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Health Care Providers & Services 29.10
Pharmaceuticals 26.26
Health Care Equipment & Supplies 21.42
Biotechnology 12.45
Life Science Tools & Services 9.03
Health Care Technology 1.74
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 18
Rydex S&P Equal Weight Industrials ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ---------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ---------------------------------------------------------------------------------
CUMMINS, INC. 2.41%
PACCAR, INC. 2.11%
HONEYWELL INTERNATIONAL, INC. 2.09%
CATERPILLAR, INC. 2.09%
UNION PACIFIC CORP. 2.07%
TEREX CORP. 2.07%
R.R. DONNELLEY & SONS CO. 2.06%
GOODRICH CORP. 2.05%
TEXTRON, INC. 2.05%
C.H. ROBINSON WORLDWIDE, INC. 2.04%
- ---------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Machinery 25.80%
Aerospace & Defense 18.91%
Commercial Services & Supplies 16.66%
Road & Rail 9.93%
Industrial Conglomerates 7.92%
Electrical Equipment 5.79%
Air Freight & Logistics 5.62%
Building Products 3.67%
Trading Companies & Distributors 1.99%
Construction & Engineering 1.97%
Airlines 1.74%
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 19
Rydex S&P Equal Weight Materials ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
MONSANTO CO. 3.89%
UNITED STATES STEEL CORP. 3.88%
MEADWESTVACO CORP. 3.87%
BALL CORP. 3.81%
EASTMAN CHEMICAL CO. 3.79%
FREEPORT-MCMORAN COPPER & GOLD, INC. -- CLASS B 3.76%
PACTIV CORP. 3.75%
VULCAN MATERIALS CO. 3.66%
INTERNATIONAL PAPER CO. 3.64%
PRAXAIR, INC. 3.63%
- --------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Chemicals 45.69
Metals & Mining 21.69
Containers & Packaging 18.03
Paper & Forest Products 10.93
Construction Materials 3.66
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 20
Rydex S&P Equal Weight Technology ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
FIRST DATA CORP. 1.68%
JUNIPER NETWORKS, INC. 1.58%
PMC -- SIERRA, INC. 1.51%
AFFILIATED COMPUTER SERVICES, INC. -- CLASS A 1.50%
EMC CORP. 1.50%
NVIDIA CORP. 1.49%
CIENA CORP. 1.48%
FIDELITY NATIONAL INFORMATION SERVICES, INC. 1.48%
XILINX, INC. 1.48%
ADC TELECOMMUNICATIONS, INC. 1.44%
- --------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Semiconductors & Semiconductor Equipment 24.29
It Services 16.33
Software 16.26
Computers & Peripherals 14.72
Communications Equipment 13.90
Electronic Equipment & Instruments 7.73
Internet Software & Services 5.36
Office Electronics 1.41
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 21
Rydex S&P Equal Weight Utilities ETF
PORTFOLIO SUMMARY April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- --------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- --------------------------------------------------------------------------------
PPL CORP. 2.61%
EXELON CORP. 2.60%
ENTERGY CORP. 2.57%
QUESTAR CORP. 2.57%
ALLEGHENY ENERGY, INC. 2.55%
EMBARQ CORP. 2.54%
PUBLIC SERVICE ENTERPRISE GROUP, INC. 2.52%
DYNEGY, INC. 2.50%
PG&E CORP. 2.48%
AMERICAN ELECTRIC POWER CO., INC. 2.47%
- --------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Electric Utilities 32.11%
Multi-Utilities 31.53%
Diversified Telecommunication Services 16.87%
Independent Power Producers & Energy Traders 9.74%
Gas Utilities 5.05%
Wireless Telecommunication Services 4.70%
</Table>
* The Fund's Top 10 Holdings are expressed as a percentage of net assets and the
Industry Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 22
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS 99.8%
AEROSPACE & DEFENSE 2.0%
Boeing Co. ..................................... 47,356 $4,404,108
General Dynamics Corp. ......................... 55,314 4,342,149
Goodrich Corp. ................................. 85,945 4,885,114
Honeywell International, Inc. .................. 91,375 4,950,698
L-3 Communications Holdings, Inc. .............. 51,549 4,635,802
Lockheed Martin Corp. .......................... 43,960 4,226,314
Northrop Grumman Corp. ......................... 58,771 4,327,896
Raytheon Co. ................................... 81,495 4,363,242
Rockwell Collins, Inc. ......................... 63,218 4,151,526
United Technologies Corp. ...................... 66,800 4,484,284
--------------
TOTAL AEROSPACE & DEFENSE 44,771,133
--------------
AIR FREIGHT & LOGISTICS 0.6%
C.H. Robinson Worldwide, Inc. .................. 90,369 4,831,127
FedEx Corp. .................................... 38,533 4,062,919
United Parcel Service, Inc. -- Class B.......... 62,072 4,371,731
--------------
TOTAL AIR FREIGHT & LOGISTICS 13,265,777
--------------
AIRLINES 0.2%
Southwest Airlines Co. ......................... 287,582 4,126,802
--------------
TOTAL AIRLINES 4,126,802
--------------
AUTO COMPONENTS 0.4%
Goodyear Tire & Rubber Co.*..................... 151,350 5,033,901
Johnson Controls, Inc. ......................... 45,357 4,641,382
--------------
TOTAL AUTO COMPONENTS 9,675,283
--------------
AUTOMOBILES 0.6%
Ford Motor Co. ................................. 567,297 4,561,068
General Motors Corp. ........................... 146,657 4,580,098
Harley-Davidson, Inc. .......................... 70,461 4,461,590
--------------
TOTAL AUTOMOBILES 13,602,756
--------------
BEVERAGES 1.6%
Anheuser-Busch Cos., Inc. ...................... 86,354 4,247,753
Brown-Forman Corp. -- Class B................... 66,283 4,237,472
Coca-Cola Co. (The)............................. 91,259 4,762,807
Coca-Cola Enterprises, Inc. .................... 211,523 4,640,815
Constellation Brands, Inc. -- Class A*.......... 222,131 4,977,956
Molson Coors Brewing Co. -- Class B............. 48,501 4,572,674
Pepsi Bottling Group, Inc. ..................... 139,704 4,583,688
PepsiCo, Inc. .................................. 68,404 4,520,821
--------------
TOTAL BEVERAGES 36,543,986
--------------
BIOTECHNOLOGY 1.4%
Amgen, Inc.*.................................... 71,819 4,606,471
Biogen Idec, Inc.*.............................. 97,729 4,613,786
Celgene Corp.*.................................. 83,281 5,093,466
Genzyme Corp.*.................................. 71,981 4,701,079
Gilead Sciences, Inc.*.......................... 61,362 5,014,502
MedImmune, Inc.*................................ 132,231 7,494,853
--------------
TOTAL BIOTECHNOLOGY 31,524,157
--------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
BUILDING PRODUCTS 0.4%
American Standard Cos., Inc. ................... 80,593 $4,437,451
Masco Corp. .................................... 154,630 4,207,482
--------------
TOTAL BUILDING PRODUCTS 8,644,933
--------------
CAPITAL MARKETS 3.4%
Ameriprise Financial, Inc. ..................... 77,567 4,612,909
Bank of New York Co., Inc....................... 110,257 4,463,203
Bear Stearns Cos., Inc. ........................ 29,062 4,524,953
Charles Schwab Corp. ........................... 237,917 4,548,973
E*Trade Financial Corp.*........................ 197,641 4,363,913
Federated Investors, Inc. -- Class B............ 119,898 4,575,308
Franklin Resources, Inc. ....................... 36,703 4,819,471
Goldman Sachs Group, Inc. ...................... 21,347 4,666,668
Janus Capital Group, Inc. ...................... 211,882 5,301,288
Legg Mason, Inc. ............................... 44,420 4,406,020
Lehman Brothers Holdings, Inc. ................. 59,090 4,448,295
Mellon Financial Corp. ......................... 103,316 4,435,356
Merrill Lynch & Co., Inc. ...................... 53,483 4,825,771
Morgan Stanley.................................. 57,549 4,834,692
Northern Trust Corp. ........................... 74,063 4,662,266
State Street Corp. ............................. 67,673 4,660,640
T. Rowe Price Group, Inc. ...................... 92,524 4,596,592
--------------
TOTAL CAPITAL MARKETS 78,746,318
--------------
CHEMICALS 2.5%
Air Products & Chemicals, Inc. ................. 58,694 4,490,091
Ashland, Inc. .................................. 67,317 4,035,654
Dow Chemical Co. (The).......................... 94,111 4,198,292
Du Pont (E.I.) de Nemours & Co. ................ 85,449 4,201,527
Eastman Chemical Co. ........................... 70,996 4,806,429
Ecolab, Inc. ................................... 100,579 4,323,891
Hercules, Inc.*................................. 209,894 3,954,403
International Flavors & Fragrances, Inc. ....... 92,341 4,494,236
Monsanto Co. ................................... 81,724 4,820,899
PPG Industries, Inc. ........................... 62,315 4,585,138
Praxair, Inc. .................................. 70,342 4,540,576
Rohm & Haas Co. ................................ 83,897 4,293,010
Sigma-Aldrich Corp. ............................ 107,179 4,510,092
--------------
TOTAL CHEMICALS 57,254,238
--------------
COMMERCIAL BANKS 3.6%
BB&T Corp. ..................................... 105,668 4,397,902
Comerica, Inc. ................................. 73,170 4,529,955
Commerce Bancorp, Inc. ......................... 130,077 4,349,775
Compass Bancshares, Inc. ....................... 64,175 4,375,451
Fifth Third Bancorp............................. 109,210 4,432,834
First Horizon National Corp. ................... 104,734 4,106,620
Huntington Bancshares, Inc. .................... 193,365 4,288,836
KeyCorp......................................... 116,563 4,158,968
M&T Bank Corp. ................................. 37,181 4,139,733
Marshall & Ilsley Corp. ........................ 92,665 4,449,773
National City Corp. ............................ 119,336 4,361,731
PNC Financial Services Group, Inc. ............. 61,313 4,543,293
Regions Financial Corp. ........................ 123,962 4,349,827
SunTrust Banks, Inc. ........................... 51,429 4,341,636
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 23
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Synovus Financial Corp. ........................ 133,511 $4,213,607
U.S. Bancorp.................................... 122,031 4,191,765
Wachovia Corp. ................................. 77,807 4,321,401
Wells Fargo & Co. .............................. 126,268 4,531,758
Zions Bancorp................................... 50,774 4,153,313
--------------
TOTAL COMMERCIAL BANKS 82,238,178
--------------
COMMERCIAL SERVICES & SUPPLIES 1.7%
Allied Waste Industries, Inc.*.................. 348,912 4,664,953
Avery Dennison Corp.*........................... 66,859 4,158,630
Cintas Corp. ................................... 108,297 4,057,889
Equifax, Inc. .................................. 116,042 4,618,472
Monster Worldwide, Inc.*........................ 90,644 3,811,580
Pitney Bowes, Inc. ............................. 94,841 4,552,368
R.R. Donnelley & Sons Co. ...................... 119,939 4,821,548
Robert Half International, Inc. ................ 116,403 3,876,220
Waste Management, Inc. ......................... 128,074 4,791,248
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 39,352,908
--------------
COMMUNICATIONS EQUIPMENT 2.0%
ADC Telecommunications, Inc.*................... 263,348 4,845,603
Avaya, Inc.*.................................... 367,461 4,747,596
Ciena Corp.*.................................... 169,725 4,949,181
Cisco Systems, Inc.*............................ 166,019 4,439,348
Corning, Inc.*.................................. 197,374 4,681,711
JDS Uniphase Corp.*............................. 282,323 4,652,683
Juniper Networks, Inc.*......................... 234,985 5,254,265
Motorola, Inc. ................................. 235,184 4,075,739
QUALCOMM, Inc. ................................. 98,414 4,310,533
Tellabs, Inc.*.................................. 432,004 4,587,883
--------------
TOTAL COMMUNICATIONS EQUIPMENT 46,544,542
--------------
COMPUTERS & PERIPHERALS 2.2%
Apple, Inc.*.................................... 47,938 4,784,212
Dell, Inc.*..................................... 191,041 4,816,144
EMC Corp.*...................................... 331,653 5,034,493
Hewlett-Packard Co. ............................ 107,945 4,548,802
International Business Machines Corp. .......... 46,032 4,704,931
Lexmark International, Inc. -- Class A*......... 72,685 3,961,332
NCR Corp.*...................................... 90,178 4,544,971
Network Appliance, Inc.*........................ 117,152 4,359,226
QLogic Corp.*................................... 250,120 4,472,146
SanDisk Corp.*.................................. 105,707 4,592,969
Sun Microsystems, Inc.*......................... 689,490 3,599,138
--------------
TOTAL COMPUTERS & PERIPHERALS 49,418,364
--------------
CONSTRUCTION & ENGINEERING 0.2%
Fluor Corp. .................................... 48,905 4,676,296
--------------
TOTAL CONSTRUCTION & ENGINEERING 4,676,296
--------------
CONSTRUCTION MATERIALS 0.2%
Vulcan Materials Co. ........................... 36,645 4,531,887
--------------
TOTAL CONSTRUCTION MATERIALS 4,531,887
--------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
CONSUMER FINANCE 0.6%
American Express Co. ........................... 76,778 $4,658,121
Capital One Financial Corp. .................... 56,726 4,212,473
SLM Corp. ...................................... 103,239 5,557,355
--------------
TOTAL CONSUMER FINANCE 14,427,949
--------------
CONTAINERS & PACKAGING 1.0%
Ball Corp. ..................................... 94,653 4,797,960
Bemis Co., Inc. ................................ 130,536 4,336,406
Pactiv Corp.*................................... 136,500 4,720,170
Sealed Air Corp. ............................... 135,524 4,458,740
Temple-Inland, Inc. ............................ 74,017 4,384,767
--------------
TOTAL CONTAINERS & PACKAGING 22,698,043
--------------
DISTRIBUTORS 0.2%
Genuine Parts Co. .............................. 88,382 4,366,955
--------------
TOTAL DISTRIBUTORS 4,366,955
--------------
DIVERSIFIED CONSUMER SERVICES 0.4%
Apollo Group, Inc. -- Class A*.................. 93,721 4,433,003
H&R Block, Inc. ................................ 205,457 4,645,383
--------------
TOTAL DIVERSIFIED CONSUMER SERVICES 9,078,386
--------------
DIVERSIFIED FINANCIAL SERVICES 1.2%
Bank of America Corp. .......................... 86,030 4,378,927
Chicago Mercantile Exchange Holdings, Inc. ..... 8,080 4,175,340
CIT Group, Inc. ................................ 82,588 4,926,374
Citigroup, Inc. ................................ 85,990 4,610,784
JPMorgan Chase & Co. ........................... 90,371 4,708,329
Moody's Corp. .................................. 67,713 4,477,184
--------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 27,276,938
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES 1.4%
AT&T, Inc. ..................................... 116,047 4,493,340
CenturyTel, Inc. ............................... 98,414 4,531,965
Citizens Communications Co. .................... 300,011 4,671,171
Embarq Corp. ................................... 79,728 4,786,869
Qwest Communications International, Inc.*....... 497,820 4,420,642
Verizon Communications, Inc. ................... 118,279 4,515,892
Windstream Corp................................. 299,536 4,379,216
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 31,799,095
--------------
ELECTRIC UTILITIES 2.6%
Allegheny Energy, Inc.*......................... 90,188 4,821,451
American Electric Power Co., Inc. .............. 92,897 4,665,287
Duke Energy Corp. .............................. 219,043 4,494,762
Edison International............................ 88,343 4,624,756
Entergy Corp. .................................. 43,035 4,868,980
Exelon Corp. ................................... 64,945 4,897,503
FirstEnergy Corp. .............................. 68,312 4,675,273
FPL Group, Inc. ................................ 72,480 4,665,538
Integrys Energy Group, Inc. .................... 79,698 4,471,058
Pinnacle West Capital Corp. .................... 90,795 4,384,491
PPL Corp. ...................................... 113,389 4,944,894
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 24
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Progress Energy, Inc. .......................... 86,599 $4,377,579
Southern Co. ................................... 120,789 4,564,616
--------------
TOTAL ELECTRIC UTILITIES 60,456,188
--------------
ELECTRICAL EQUIPMENT 0.6%
Cooper Industries Ltd., -- Class A.............. 93,003 4,627,829
Emerson Electric Co. ........................... 101,303 4,760,228
Rockwell Automation, Inc.*...................... 71,488 4,256,396
--------------
TOTAL ELECTRICAL EQUIPMENT 13,644,453
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.1%
Agilent Technologies, Inc.*..................... 135,535 4,658,338
Jabil Circuit, Inc. ............................ 163,844 3,817,565
Molex, Inc. .................................... 151,247 4,519,260
Sanmina-SCI Corp.*.............................. 1,151,972 3,974,304
Solectron Corp.*................................ 1,337,885 4,481,915
Tektronix, Inc. ................................ 149,475 4,393,070
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 25,844,452
--------------
ENERGY EQUIPMENT & SERVICES 2.6%
Baker Hughes, Inc. ............................. 67,938 5,461,536
BJ Services Co. ................................ 158,417 4,540,231
ENSCO International, Inc. ...................... 84,396 4,758,246
Halliburton Co. ................................ 133,708 4,247,903
Nabors Industries Ltd.*......................... 146,173 4,695,077
National-Oilwell Varco, Inc.*................... 58,683 4,979,253
Noble Corp. .................................... 57,894 4,875,254
Rowan Cos., Inc. ............................... 140,510 5,148,286
Schlumberger Ltd. .............................. 66,800 4,931,844
Smith International, Inc. ...................... 97,618 5,119,088
Transocean, Inc.*............................... 56,140 4,839,268
Weatherford International Ltd.*................. 96,997 5,091,373
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 58,687,359
--------------
FOOD & STAPLES RETAILING 1.8%
Costco Wholesale Corp. ......................... 81,007 4,339,545
CVS Corp. ...................................... 129,121 4,679,345
Kroger Co. ..................................... 161,090 4,753,766
Safeway, Inc. .................................. 123,173 4,471,180
SUPERVALU, Inc. ................................ 113,734 5,220,390
Sysco Corp. .................................... 131,962 4,320,436
Wal-Mart Stores, Inc. .......................... 93,270 4,469,498
Walgreen Co. ................................... 93,602 4,109,128
Whole Foods Market, Inc. ....................... 96,667 4,523,049
--------------
TOTAL FOOD & STAPLES RETAILING 40,886,337
--------------
FOOD PRODUCTS 2.5%
Archer-Daniels-Midland Co. ..................... 127,863 4,948,298
Campbell Soup Co. .............................. 109,043 4,263,581
ConAgra Foods, Inc. ............................ 177,300 4,358,034
Dean Foods Co. ................................. 92,321 3,363,254
General Mills, Inc. ............................ 76,644 4,590,976
H.J. Heinz Co. ................................. 93,347 4,397,577
Hershey Co. (The)............................... 80,163 4,405,758
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
Kellogg Co. .................................... 84,403 $4,465,763
Kraft Foods, Inc. .............................. 136,006 4,552,121
McCormick & Co, Inc. ........................... 113,754 4,222,548
Sara Lee Corp. ................................. 258,387 4,240,131
Tyson Foods, Inc. -- Class A.................... 235,468 4,935,409
Wm. Wrigley Jr. Co. ............................ 83,044 4,889,631
--------------
TOTAL FOOD PRODUCTS 57,633,081
--------------
GAS UTILITIES 0.4%
Nicor, Inc. .................................... 91,018 4,663,762
Questar Corp. .................................. 49,859 4,842,805
--------------
TOTAL GAS UTILITIES 9,506,567
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.4%
Bausch & Lomb, Inc. ............................ 85,302 5,018,317
Baxter International, Inc. ..................... 83,593 4,733,872
Becton Dickinson & Co. ......................... 57,741 4,543,639
Biomet, Inc. ................................... 101,625 4,390,200
Boston Scientific Corp.*........................ 287,664 4,441,532
C.R. Bard, Inc. ................................ 54,158 4,502,155
Hospira, Inc.*.................................. 109,000 4,419,950
Medtronic, Inc. ................................ 87,339 4,622,853
St Jude Medical, Inc.*.......................... 113,843 4,871,342
Stryker Corp. .................................. 66,276 4,303,963
Varian Medical Systems, Inc.*................... 89,507 3,778,090
Zimmer Holdings, Inc.*.......................... 50,312 4,552,230
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 54,178,143
--------------
HEALTH CARE PROVIDERS & SERVICES 3.2%
Aetna, Inc. .................................... 100,166 4,695,782
AmerisourceBergen Corp. ........................ 82,493 4,123,825
Cardinal Health, Inc. .......................... 60,949 4,263,382
Cigna Corp. .................................... 30,227 4,703,019
Coventry Health Care, Inc.*..................... 77,855 4,502,355
Express Scripts, Inc.*.......................... 52,283 4,995,641
Humana, Inc.*................................... 73,508 4,648,646
Laboratory Corp. of America Holdings*........... 60,323 4,761,898
Manor Care, Inc. ............................... 79,831 5,180,233
McKesson Corp. ................................. 77,948 4,585,681
Medco Health Solutions, Inc.*................... 62,653 4,888,187
Patterson Cos., Inc.*........................... 129,727 4,677,956
Quest Diagnostics, Inc. ........................ 87,549 4,280,271
Tenet Healthcare Corp.*......................... 678,877 5,037,267
UnitedHealth Group, Inc. ....................... 79,739 4,230,951
WellPoint, Inc.*................................ 54,603 4,311,999
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 73,887,093
--------------
HEALTH CARE TECHNOLOGY 0.2%
IMS Health, Inc. ............................... 151,257 4,436,368
--------------
TOTAL HEALTH CARE TECHNOLOGY 4,436,368
--------------
HOTELS, RESTAURANTS & LEISURE 2.4%
Carnival Corp. ................................. 94,108 4,600,940
Darden Restaurants, Inc. ....................... 108,454 4,498,672
Harrah's Entertainment, Inc. ................... 51,420 4,386,126
Hilton Hotels Corp. ............................ 128,903 4,382,702
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 25
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
International Game Technology, Inc. ............ 110,083 $4,198,566
Marriott International, Inc. -- Class A......... 90,093 4,073,105
McDonald's Corp. ............................... 98,700 4,765,236
Starbucks Corp.*................................ 143,121 4,439,613
Starwood Hotels & Resorts Worldwide, Inc. ...... 67,519 4,525,123
Wendy's International, Inc. .................... 138,979 5,239,508
Wyndham Worldwide Corp.*........................ 129,939 4,495,889
Yum! Brands, Inc. .............................. 73,925 4,573,001
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE 54,178,481
--------------
HOUSEHOLD DURABLES 2.6%
Black & Decker Corp. ........................... 51,839 4,702,834
Centex Corp. ................................... 97,501 4,365,120
D.R. Horton, Inc. .............................. 187,611 4,161,212
Fortune Brands, Inc. ........................... 54,714 4,382,591
Harman International Industries, Inc. .......... 43,717 5,328,665
KB Home......................................... 93,059 4,104,832
Leggett & Platt, Inc. .......................... 185,412 4,360,890
Lennar Corp. -- Class A......................... 94,515 4,036,736
Newell Rubbermaid, Inc.*........................ 141,270 4,332,751
Pulte Homes, Inc. .............................. 161,867 4,354,222
Snap-On, Inc. .................................. 88,966 4,848,647
Stanley Works................................... 79,353 4,624,693
Whirlpool Corp. ................................ 50,759 5,381,977
--------------
TOTAL HOUSEHOLD DURABLES 58,985,170
--------------
HOUSEHOLD PRODUCTS 0.8%
Clorox Co. ..................................... 68,677 4,606,853
Colgate-Palmolive Co. .......................... 65,907 4,464,540
Kimberly-Clark Corp. ........................... 64,140 4,564,844
Procter & Gamble Co. ........................... 69,489 4,468,838
--------------
TOTAL HOUSEHOLD PRODUCTS 18,105,075
--------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.8%
AES Corp.*...................................... 207,819 4,569,940
Constellation Energy Group, Inc. ............... 51,196 4,562,588
Dynegy, Inc.*................................... 496,935 4,676,158
TXU Corp. ...................................... 68,181 4,471,310
--------------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS
18,279,996
--------------
INDUSTRIAL CONGLOMERATES 0.8%
3M Co. ......................................... 56,705 4,693,473
General Electric Co. ........................... 124,590 4,592,387
Textron, Inc. .................................. 47,950 4,875,077
Tyco International Ltd. ........................ 139,300 4,545,359
--------------
TOTAL INDUSTRIAL CONGLOMERATES 18,706,296
--------------
INSURANCE 4.8%
ACE Ltd. ....................................... 78,204 4,650,010
AFLAC, Inc. .................................... 93,671 4,809,069
Allstate Corp................................... 72,168 4,497,510
Ambac Financial Group, Inc. .................... 49,897 4,580,545
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
American International Group, Inc. ............. 64,121 $4,482,699
Aon Corp. ...................................... 114,040 4,419,050
Assurant, Inc. ................................. 77,609 4,464,846
Chubb Corp. .................................... 86,771 4,670,883
Cincinnati Financial Corp. ..................... 100,735 4,557,251
Genworth Financial, Inc. -- Class A............. 124,866 4,556,360
Hartford Financial Services Group, Inc. ........ 45,396 4,594,075
Lincoln National Corp. ......................... 64,887 4,616,710
Loews Corp. .................................... 98,215 4,647,534
Marsh & McLennan Cos., Inc. .................... 149,010 4,732,558
MBIA, Inc. ..................................... 65,857 4,581,013
MetLife, Inc. .................................. 69,430 4,561,551
Principal Financial Group, Inc. ................ 72,220 4,585,248
Progressive Corp. .............................. 203,773 4,701,043
Prudential Financial, Inc. ..................... 48,341 4,592,395
SAFECO Corp. ................................... 64,563 4,308,935
Torchmark Corp. ................................ 67,644 4,620,085
Travelers Cos., Inc. (The)...................... 85,631 4,632,637
UnumProvident Corp. ............................ 193,492 4,814,081
XL Capital Ltd. -- Class A...................... 63,228 4,930,519
--------------
TOTAL INSURANCE 110,606,607
--------------
INTERNET & CATALOG RETAIL 0.5%
Amazon.Com, Inc.*............................... 113,423 6,956,233
IAC/InterActiveCorp*............................ 117,386 4,474,754
--------------
TOTAL INTERNET & CATALOG RETAIL 11,430,987
--------------
INTERNET SOFTWARE & SERVICES 0.8%
eBay, Inc.*..................................... 135,455 4,597,343
Google, Inc. -- Class A*........................ 9,667 4,556,830
VeriSign, Inc.*................................. 173,869 4,755,317
Yahoo!, Inc.*................................... 143,322 4,018,749
--------------
TOTAL INTERNET SOFTWARE & SERVICES 17,928,239
--------------
IT SERVICES 2.4%
Affiliated Computer Services, Inc. -- Class
A*............................................ 83,579 5,007,218
Automatic Data Processing, Inc. ................ 99,174 4,439,028
Cognizant Technology Solutions Corp. -- Class
A*............................................ 48,143 4,303,984
Computer Sciences Corp.*........................ 84,120 4,672,025
Convergys Corp.*................................ 171,663 4,336,207
Electronic Data Systems Corp. .................. 156,338 4,571,323
Fidelity National Information Services, Inc. ... 97,770 4,940,318
First Data Corp. ............................... 174,675 5,659,470
Fiserv, Inc.*................................... 83,868 4,459,262
Paychex, Inc. .................................. 107,598 3,991,886
Unisys Corp.*................................... 518,196 4,062,657
Western Union Co. (The)......................... 197,509 4,157,564
--------------
TOTAL IT SERVICES 54,600,942
--------------
LEISURE EQUIPMENT & PRODUCTS 0.8%
Brunswick Corp. ................................ 135,793 4,448,579
Eastman Kodak Co. .............................. 187,321 4,666,166
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 26
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Hasbro, Inc. ................................... 147,056 $4,648,440
Mattel, Inc. ................................... 154,524 4,373,029
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 18,136,214
--------------
LIFE SCIENCES TOOLS & SERVICES 1.0%
Applera Corp. -- Applied Biosystems Group....... 148,244 4,631,143
Millipore Corp.*................................ 60,440 4,462,285
PerkinElmer, Inc. .............................. 184,517 4,465,311
Thermo Electron Corp.*.......................... 95,229 4,957,622
Waters Corp.*................................... 76,683 4,557,271
--------------
TOTAL LIFE SCIENCES TOOLS & SERVICES 23,073,632
--------------
MACHINERY 2.7%
Caterpillar, Inc. .............................. 67,742 4,919,424
Cummins, Inc. .................................. 62,417 5,752,351
Danaher Corp. .................................. 60,565 4,311,622
Deere & Co. .................................... 38,838 4,248,877
Dover Corp. .................................... 90,188 4,339,847
Eaton Corp. .................................... 52,363 4,671,303
Illinois Tool Works, Inc. ...................... 85,605 4,392,393
Ingersoll-Rand Co., Ltd. -- Class A............. 100,220 4,474,823
ITT Corp. ...................................... 72,403 4,620,035
PACCAR, Inc. ................................... 59,777 5,020,072
Pall Corp. ..................................... 113,426 4,758,221
Parker-Hannifin Corp. .......................... 52,313 4,820,120
Terex Corp.*.................................... 63,243 4,923,468
--------------
TOTAL MACHINERY 61,252,556
--------------
MEDIA 3.3%
CBS Corp. -- Class B............................ 142,559 4,529,099
Clear Channel Communications, Inc. ............. 121,970 4,321,397
Comcast Corp. -- Class A*....................... 167,578 4,467,630
DIRECTV Group, Inc.*............................ 191,884 4,574,515
Dow Jones & Co., Inc. .......................... 125,924 4,574,819
E.W. Scripps Co. -- Class A..................... 98,521 4,265,959
Gannett Co., Inc. .............................. 74,118 4,229,173
Interpublic Group of Cos., Inc.*................ 342,361 4,341,137
McGraw-Hill Cos., Inc. ......................... 68,078 4,461,151
Meredith Corp. ................................. 74,828 4,334,038
New York Times Co. -- Class A................... 176,103 4,120,810
News Corp. -- Class A........................... 191,918 4,297,044
Omnicom Group, Inc. ............................ 41,428 4,337,926
Time Warner, Inc. .............................. 220,795 4,555,001
Tribune Co. .................................... 145,547 4,773,942
Viacom, Inc. -- Class B*........................ 106,687 4,400,839
Walt Disney Co. ................................ 127,289 4,452,569
--------------
TOTAL MEDIA 75,037,049
--------------
METALS & MINING 1.2%
Alcoa, Inc. .................................... 127,216 4,514,896
Allegheny Technologies, Inc. ................... 41,644 4,563,349
Freeport-McMoRan Copper & Gold, Inc. -- Class
B............................................. 71,032 4,770,509
Newmont Mining Corp. (Holding Co.).............. 101,286 4,223,626
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
Nucor Corp. .................................... 68,115 $4,322,578
United States Steel Corp. ...................... 47,685 4,841,935
--------------
TOTAL METALS & MINING 27,236,893
--------------
MULTI-UTILITIES 2.6%
Ameren Corp. ................................... 86,776 4,561,814
CenterPoint Energy, Inc. ....................... 245,273 4,618,491
CMS Energy Corp. ............................... 251,102 4,650,409
Consolidated Edison, Inc. ...................... 88,304 4,526,463
Dominion Resources, Inc. ....................... 50,433 4,599,490
DTE Energy Co. ................................. 92,706 4,689,996
KeySpan Corp. .................................. 105,006 4,348,298
NiSource, Inc. ................................. 180,348 4,434,757
PG&E Corp. ..................................... 92,665 4,688,849
Public Service Enterprise Group, Inc. .......... 55,022 4,756,652
Sempra Energy................................... 71,158 4,517,110
TECO Energy, Inc. .............................. 256,147 4,597,839
Xcel Energy, Inc. .............................. 181,733 4,377,948
--------------
TOTAL MULTI-UTILITIES 59,368,116
--------------
MULTILINE RETAIL 1.9%
Big Lots, Inc.*................................. 138,302 4,453,324
Dillard's, Inc. -- Class A...................... 133,441 4,621,062
Dollar General Corp. ........................... 203,616 4,347,202
Family Dollar Stores, Inc. ..................... 147,663 4,701,590
Federated Department Stores, Inc. .............. 96,881 4,255,014
J.C. Penney Holding Co., Inc. .................. 54,032 4,273,391
Kohl's Corp.*................................... 59,217 4,384,427
Nordstrom, Inc. ................................ 84,006 4,613,609
Sears Holdings Corp.*........................... 24,555 4,687,795
Target Corp. ................................... 71,823 4,264,131
--------------
TOTAL MULTILINE RETAIL 44,601,545
--------------
OFFICE ELECTRONICS 0.2%
Xerox Corp.*.................................... 255,423 4,725,325
--------------
TOTAL OFFICE ELECTRONICS 4,725,325
--------------
OIL, GAS & CONSUMABLE FUELS 4.4%
Anadarko Petroleum Corp. ....................... 107,861 5,032,794
Apache Corp. ................................... 63,618 4,612,305
Chesapeake Energy Corp. ........................ 145,070 4,896,112
Chevron Corp. .................................. 62,592 4,869,032
ConocoPhillips.................................. 64,840 4,496,654
CONSOL Energy, Inc. ............................ 118,676 4,968,964
Devon Energy Corp. ............................. 66,884 4,873,837
El Paso Corp. .................................. 307,842 4,617,630
EOG Resources, Inc. ............................ 64,583 4,742,976
Exxon Mobil Corp. .............................. 60,965 4,839,402
Hess Corp....................................... 83,189 4,720,976
Kinder Morgan, Inc. ............................ 40,409 4,305,983
Marathon Oil Corp. ............................. 45,890 4,660,130
Murphy Oil Corp. ............................... 82,617 4,580,286
Occidental Petroleum Corp. ..................... 93,840 4,757,688
Peabody Energy Corp. ........................... 112,384 5,392,184
Spectra Energy Corp. ........................... 178,276 4,653,004
Sunoco, Inc. ................................... 64,725 4,888,679
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 27
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Valero Energy Corp. ............................ 71,198 $5,000,236
Williams Cos., Inc. ............................ 160,301 4,728,879
XTO Energy, Inc. ............................... 84,383 4,579,465
--------------
TOTAL OIL, GAS & CONSUMABLE FUELS 100,217,216
--------------
PAPER & FOREST PRODUCTS 0.6%
International Paper Co. ........................ 121,714 4,591,052
MeadWestvaco Corp. ............................. 145,591 4,856,916
Weyerhaeuser Co. ............................... 54,109 4,286,515
--------------
TOTAL PAPER & FOREST PRODUCTS 13,734,483
--------------
PERSONAL PRODUCTS 0.4%
Avon Products, Inc. ............................ 114,344 4,550,891
Estee Lauder Cos., Inc -- Class A............... 89,582 4,606,307
--------------
TOTAL PERSONAL PRODUCTS 9,157,198
--------------
PHARMACEUTICALS 2.9%
Abbott Laboratories............................. 80,380 4,551,116
Allergan, Inc. ................................. 38,847 4,708,256
Barr Pharmaceuticals, Inc.*..................... 89,793 4,342,389
Bristol-Myers Squibb Co. ....................... 158,917 4,586,345
Eli Lilly & Co. ................................ 82,411 4,872,962
Forest Laboratories, Inc.*...................... 84,909 4,518,008
Johnson & Johnson............................... 70,787 4,545,941
King Pharmaceuticals, Inc.*..................... 228,491 4,672,641
Merck & Co., Inc. .............................. 99,449 5,115,657
Mylan Laboratories, Inc. ....................... 218,527 4,792,297
Pfizer, Inc. ................................... 171,826 4,546,516
Schering-Plough Corp. .......................... 184,695 5,860,372
Watson Pharmaceuticals, Inc.*................... 168,022 4,587,001
Wyeth........................................... 88,717 4,923,794
--------------
TOTAL PHARMACEUTICALS 66,623,295
--------------
REAL ESTATE INVESTMENT TRUSTS (REITS) 2.4%
Apartment Investment & Management Co. -- Class
A............................................. 77,450 4,282,985
Archstone-Smith Trust........................... 79,476 4,141,494
AvalonBay Communities, Inc. .................... 33,106 4,047,540
Boston Properties, Inc. ........................ 36,481 4,288,706
Developers Diversified Realty Corp. ............ 68,517 4,460,457
Equity Residential Properties Trust............. 89,749 4,167,046
Host Hotels & Resorts, Inc. .................... 161,825 4,149,193
Kimco Realty Corp. ............................. 88,362 4,247,561
Plum Creek Timber Co., Inc. .................... 112,566 4,468,870
ProLogis........................................ 65,257 4,228,654
Public Storage, Inc. ........................... 44,258 4,130,157
Simon Property Group, Inc. ..................... 38,788 4,471,481
Vornado Realty Trust............................ 35,196 4,175,301
--------------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 55,259,445
--------------
REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2%
CB Richard Ellis Group, Inc. -- Class A*........ 129,721 4,391,056
--------------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 4,391,056
--------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
ROAD & RAIL 1.0%
Burlington Northern Santa Fe Corp. ............. 54,574 $4,777,408
CSX Corp. ...................................... 110,857 4,785,697
Norfolk Southern Corp. ......................... 88,852 4,730,480
Ryder System, Inc. ............................. 86,771 4,567,625
Union Pacific Corp. ............................ 43,475 4,967,019
--------------
TOTAL ROAD & RAIL 23,828,229
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.6%
Advanced Micro Devices, Inc.*................... 307,585 4,250,825
Altera Corp.*................................... 205,591 4,634,021
Analog Devices, Inc. ........................... 121,272 4,683,525
Applied Materials, Inc. ........................ 231,886 4,456,849
Broadcom Corp. -- Class A*...................... 125,617 4,088,833
Intel Corp. .................................... 224,316 4,822,794
KLA-Tencor Corp. ............................... 82,449 4,580,042
Linear Technology Corp. ........................ 127,378 4,766,485
LSI Logic Corp.*................................ 422,919 3,594,812
Maxim Integrated Products, Inc. ................ 133,992 4,250,226
Micron Technology, Inc.*........................ 372,790 4,275,901
National Semiconductor Corp. ................... 171,418 4,508,293
Novellus Systems, Inc.*......................... 129,909 4,205,154
NVIDIA Corp.*................................... 150,593 4,953,004
PMC -- Sierra, Inc.*............................ 648,563 5,013,392
Teradyne, Inc.*................................. 256,147 4,469,765
Texas Instruments, Inc. ........................ 136,505 4,691,677
Xilinx, Inc. ................................... 167,159 4,927,847
--------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT
81,173,445
--------------
SOFTWARE 2.4%
Adobe Systems, Inc.*............................ 110,480 4,591,549
Autodesk, Inc.*................................. 114,529 4,726,612
BMC Software, Inc.*............................. 139,206 4,506,098
CA, Inc. ....................................... 169,660 4,624,932
Citrix Systems, Inc.*........................... 137,558 4,484,391
Compuware Corp.*................................ 460,727 4,547,375
Electronic Arts, Inc.*.......................... 86,267 4,348,719
Intuit, Inc.*................................... 148,802 4,233,417
Microsoft Corp. ................................ 157,382 4,712,017
Novell, Inc.*................................... 614,364 4,484,857
Oracle Corp.*................................... 257,267 4,836,620
Symantec Corp.*................................. 256,656 4,517,146
--------------
TOTAL SOFTWARE 54,613,733
--------------
SPECIALTY RETAIL 3.3%
Abercrombie & Fitch Co. -- Class A.............. 57,802 4,720,111
AutoNation, Inc.*............................... 203,706 4,163,751
AutoZone, Inc.*................................. 34,345 4,569,259
Bed Bath & Beyond, Inc.*........................ 110,282 4,492,889
Best Buy Co., Inc. ............................. 89,295 4,165,612
Circuit City Stores, Inc. ...................... 241,574 4,215,466
Gap, Inc. ...................................... 245,014 4,398,001
Home Depot, Inc. ............................... 114,687 4,343,197
Limited Brands, Inc. ........................... 167,401 4,615,245
Lowe's Cos., Inc. .............................. 138,091 4,220,061
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 28
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Office Depot, Inc.*............................. 124,452 $4,184,076
OfficeMax, Inc. ................................ 86,485 4,256,792
RadioShack Corp. ............................... 165,425 4,808,905
Sherwin-Williams Co. ........................... 65,270 4,162,268
Staples, Inc. .................................. 167,923 4,164,490
Tiffany & Co. .................................. 100,181 4,777,632
TJX Cos., Inc. ................................. 164,409 4,585,367
--------------
TOTAL SPECIALTY RETAIL 74,843,122
--------------
TEXTILES, APPAREL & LUXURY GOODS 1.2%
Coach, Inc.*.................................... 87,529 4,274,041
Jones Apparel Group, Inc. ...................... 134,444 4,489,085
Liz Claiborne, Inc. ............................ 100,313 4,485,997
Nike, Inc. -- Class B........................... 80,598 4,341,008
Polo Ralph Lauren Corp. ........................ 51,034 4,700,742
V.F. Corp. ..................................... 53,006 4,654,457
--------------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 26,945,330
--------------
THRIFTS & MORTGAGE FINANCE 1.4%
Countrywide Financial Corp. .................... 121,546 4,506,926
Federal Home Loan Mortgage Corp. ............... 70,929 4,594,781
Federal National Mortgage Association........... 79,481 4,683,020
Hudson City Bancorp, Inc. ...................... 318,604 4,243,805
MGIC Investment Corp. .......................... 73,806 4,547,188
Sovereign Bancorp, Inc. ........................ 172,067 4,176,066
Washington Mutual, Inc. ........................ 106,997 4,491,734
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 31,243,520
--------------
TOBACCO 0.6%
Altria Group, Inc. ............................. 67,618 4,660,233
Reynolds American, Inc. ........................ 71,424 4,589,706
UST, Inc. ...................................... 76,168 4,317,202
--------------
TOTAL TOBACCO 13,567,141
--------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS 0.2%
W.W. Grainger, Inc. ............................ 57,094 $4,717,106
--------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 4,717,106
--------------
WIRELESS TELECOMMUNICATION SERVICES 0.4%
ALLTEL Corp. ................................... 69,797 4,375,574
Sprint Nextel Corp. ............................ 224,820 4,503,144
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 8,878,718
--------------
TOTAL COMMON STOCKS
(Cost $2,000,545,266) 2,279,171,125
--------------
SHORT TERM INVESTMENTS 0.2%
SSgA Prime Money Market Fund.................... 4,555,691 4,555,691
--------------
TOTAL SHORT TERM INVESTMENTS
(Cost $4,555,691) 4,555,691
--------------
TOTAL INVESTMENTS 100.0%
(Cost $2,005,100,957) 2,283,726,816
--------------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 828,074
--------------
NET ASSETS--100.0% $2,284,554,890
- ------------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 29
RYDEX RUSSELL TOP 50 ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------------
COMMON STOCKS 98.8%
AEROSPACE & DEFENSE 2.2%
Boeing Co. ..................................... 67,494 $6,276,942
United Technologies Corp. ...................... 85,434 5,735,184
------------
TOTAL AEROSPACE & DEFENSE 12,012,126
------------
AIR FREIGHT & LOGISTICS 0.7%
United Parcel Service, Inc. -- Class B.......... 54,401 3,831,462
------------
TOTAL AIR FREIGHT & LOGISTICS 3,831,462
------------
BEVERAGES 3.4%
Coca-Cola Co. (The)............................. 172,128 8,983,360
PepsiCo, Inc. .................................. 139,546 9,222,595
------------
TOTAL BEVERAGES 18,205,955
------------
BIOTECHNOLOGY 1.8%
Amgen, Inc.*.................................... 99,591 6,387,767
Genentech, Inc.*................................ 39,469 3,157,125
------------
TOTAL BIOTECHNOLOGY 9,544,892
------------
CAPITAL MARKETS 4.1%
Goldman Sachs Group, Inc. ...................... 34,495 7,540,952
Merrill Lynch & Co., Inc. ...................... 77,872 7,026,390
Morgan Stanley.................................. 90,476 7,600,889
------------
TOTAL CAPITAL MARKETS 22,168,231
------------
COMMERCIAL BANKS 3.5%
Wachovia Corp. ................................. 159,326 8,848,966
Wells Fargo & Co. .............................. 283,844 10,187,161
------------
TOTAL COMMERCIAL BANKS 19,036,127
------------
COMMUNICATIONS EQUIPMENT 3.7%
Cisco Systems, Inc.*............................ 515,611 13,787,438
QUALCOMM, Inc. ................................. 141,582 6,201,292
------------
TOTAL COMMUNICATIONS EQUIPMENT 19,988,730
------------
COMPUTERS & PERIPHERALS 5.2%
Dell, Inc.*..................................... 194,921 4,913,958
Hewlett-Packard Co. ............................ 236,716 9,975,212
International Business Machines Corp. .......... 130,912 13,380,516
------------
TOTAL COMPUTERS & PERIPHERALS 28,269,686
------------
CONSUMER FINANCE 1.0%
American Express Co. ........................... 91,449 5,548,211
------------
TOTAL CONSUMER FINANCE 5,548,211
------------
DIVERSIFIED FINANCIAL SERVICES 10.8%
Bank of America Corp. .......................... 392,669 19,986,852
Citigroup, Inc. ................................ 427,743 22,935,580
JPMorgan Chase & Co. ........................... 293,539 15,293,382
------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 58,215,814
------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES 5.6%
AT&T, Inc. ..................................... 540,803 $20,939,892
Verizon Communications, Inc. ................... 246,411 9,407,972
------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 30,347,864
------------
FOOD & STAPLES RETAILING 1.8%
Wal-Mart Stores, Inc. .......................... 207,796 9,957,584
------------
TOTAL FOOD & STAPLES RETAILING 9,957,584
------------
HEALTH CARE EQUIPMENT & SUPPLIES 1.0%
Medtronic, Inc. ................................ 101,918 5,394,520
------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 5,394,520
------------
HEALTH CARE PROVIDERS & SERVICES 1.1%
UnitedHealth Group, Inc. ....................... 113,749 6,035,522
------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 6,035,522
------------
HOUSEHOLD PRODUCTS 3.4%
Procter & Gamble Co. ........................... 282,354 18,158,186
------------
TOTAL HOUSEHOLD PRODUCTS 18,158,186
------------
INDUSTRIAL CONGLOMERATES 7.1%
3M Co. ......................................... 63,713 5,273,525
General Electric Co. ........................... 894,776 32,981,443
------------
TOTAL INDUSTRIAL CONGLOMERATES 38,254,968
------------
INSURANCE 2.4%
American International Group, Inc. ............. 186,091 13,009,622
------------
TOTAL INSURANCE 13,009,622
------------
INTERNET SOFTWARE & SERVICES 1.5%
Google, Inc. -- Class A*........................ 17,653 8,321,271
------------
TOTAL INTERNET SOFTWARE & SERVICES 8,321,271
------------
MEDIA 4.5%
Comcast Corp. -- Class A*....................... 246,802 6,579,741
Idearc, Inc. ................................... 12,316 427,981
News Corp. -- Class A........................... 194,533 4,355,594
Time Warner, Inc. .............................. 323,306 6,669,803
Walt Disney Co. ................................ 174,762 6,113,175
------------
TOTAL MEDIA 24,146,294
------------
OIL, GAS & CONSUMABLE FUELS 11.8%
Chevron Corp. .................................. 187,256 14,566,644
ConocoPhillips.................................. 139,448 9,670,719
Exxon Mobil Corp. .............................. 492,994 39,133,864
------------
TOTAL OIL, GAS & CONSUMABLE FUELS 63,371,227
------------
PHARMACEUTICALS 10.3%
Abbott Laboratories............................. 128,879 7,297,129
Johnson & Johnson............................... 250,093 16,060,972
Merck & Co., Inc. .............................. 184,347 9,482,810
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 30
RYDEX RUSSELL TOP 50 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Pfizer, Inc. ................................... 618,988 $16,378,423
Wyeth........................................... 113,652 6,307,686
------------
TOTAL PHARMACEUTICALS 55,527,020
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.0%
Intel Corp. .................................... 491,368 10,564,412
------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 10,564,412
------------
SOFTWARE 5.4%
Microsoft Corp. ................................ 763,689 22,864,849
Oracle Corp.*................................... 335,728 6,311,686
------------
TOTAL SOFTWARE 29,176,535
------------
SPECIALTY RETAIL 1.3%
Home Depot, Inc. ............................... 178,918 6,775,625
------------
TOTAL SPECIALTY RETAIL 6,775,625
------------
TOBACCO 2.3%
Altria Group, Inc. ............................. 176,396 12,157,212
------------
TOTAL TOBACCO 12,157,212
------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES 0.9%
Sprint Nextel Corp. ............................ 244,858 $4,904,506
------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 4,904,506
------------
TOTAL COMMON STOCKS
(Cost $504,173,883) 532,923,602
------------
SHORT TERM INVESTMENTS 1.1%
SSgA Prime Money Market Fund.................... 5,871,820 5,871,820
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $5,871,820) 5,871,820
------------
TOTAL INVESTMENTS 99.9%
(Cost $510,045,703) 538,795,422
------------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 400,947
------------
NET ASSETS--100.0% $539,196,369
- ----------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 31
RYDEX S&P 500 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- --------------------------------------------------------------------------
COMMON STOCKS 99.7%
AEROSPACE & DEFENSE 1.4%
Goodrich Corp. ................................. 2,597 $147,613
Northrop Grumman Corp. ......................... 4,090 301,188
Raytheon Co. ................................... 2,729 146,111
------------
TOTAL AEROSPACE & DEFENSE 594,912
------------
AUTO COMPONENTS 1.4%
Goodyear Tire & Rubber Co.*..................... 8,692 289,096
Johnson Controls, Inc. ......................... 2,926 299,417
------------
TOTAL AUTO COMPONENTS 588,513
------------
AUTOMOBILES 3.5%
Ford Motor Co. ................................. 125,300 1,007,412
General Motors Corp. ........................... 16,923 528,505
------------
TOTAL AUTOMOBILES 1,535,917
------------
BEVERAGES 1.7%
Coca-Cola Enterprises, Inc. .................... 14,165 310,780
Molson Coors Brewing Co. -- Class B............. 4,476 421,997
------------
TOTAL BEVERAGES 732,777
------------
BUILDING PRODUCTS 0.5%
Masco Corp. .................................... 7,700 209,517
------------
TOTAL BUILDING PRODUCTS 209,517
------------
CAPITAL MARKETS 0.3%
Bear Stearns Cos., Inc. ........................ 727 113,194
------------
TOTAL CAPITAL MARKETS 113,194
------------
CHEMICALS 3.5%
Air Products & Chemicals, Inc. ................. 2,106 161,109
Ashland, Inc. .................................. 5,392 323,250
Dow Chemical Co. (The).......................... 8,103 361,475
Eastman Chemical Co. ........................... 5,052 342,021
PPG Industries, Inc. ........................... 3,021 222,285
Rohm & Haas Co. ................................ 2,163 110,681
------------
TOTAL CHEMICALS 1,520,821
------------
COMMERCIAL BANKS 7.3%
BB&T Corp. ..................................... 4,881 203,147
Comerica, Inc. ................................. 4,626 286,396
Fifth Third Bancorp............................. 5,001 202,991
First Horizon National Corp. ................... 9,605 376,612
Huntington Bancshares, Inc. .................... 10,505 233,001
KeyCorp......................................... 6,821 243,373
National City Corp. ............................ 9,961 364,074
PNC Financial Services Group, Inc. ............. 2,761 204,590
Regions Financial Corp. ........................ 8,153 286,089
SunTrust Banks, Inc. ........................... 2,116 178,633
U.S. Bancorp.................................... 4,892 168,040
Wachovia Corp. ................................. 5,129 284,865
Wells Fargo & Co. .............................. 3,792 136,095
------------
TOTAL COMMERCIAL BANKS 3,167,906
------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- --------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES 1.6%
Allied Waste Industries, Inc.*.................. 15,649 $209,227
R.R. Donnelley & Sons Co. ...................... 9,234 371,207
Waste Management, Inc. ......................... 3,405 127,381
------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 707,815
------------
CONTAINERS & PACKAGING 1.4%
Bemis Co., Inc. ................................ 4,313 143,278
Temple-Inland, Inc. ............................ 8,074 478,304
------------
TOTAL CONTAINERS & PACKAGING 621,582
------------
DISTRIBUTORS 0.4%
Genuine Parts Co. .............................. 3,785 187,017
------------
TOTAL DISTRIBUTORS 187,017
------------
DIVERSIFIED FINANCIAL SERVICES 2.4%
Bank of America Corp. .......................... 4,391 223,502
CIT Group, Inc. ................................ 4,307 256,913
Citigroup, Inc. ................................ 4,754 254,909
JPMorgan Chase & Co. ........................... 6,106 318,123
------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 1,053,447
------------
DIVERSIFIED TELECOMMUNICATION SERVICES 6.1%
AT&T, Inc. ..................................... 7,766 300,699
CenturyTel, Inc. ............................... 3,857 177,615
Citizens Communications Co. .................... 24,748 385,326
Embarq Corp. ................................... 13,933 836,537
Verizon Communications, Inc. ................... 12,037 459,573
Windstream Corp.*............................... 32,980 482,168
------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 2,641,918
------------
ELECTRIC UTILITIES 7.9%
American Electric Power Co., Inc. .............. 6,491 325,978
Duke Energy Corp. .............................. 15,720 322,574
Entergy Corp. .................................. 1,679 189,962
FirstEnergy Corp. .............................. 4,457 305,037
FPL Group, Inc. ................................ 2,973 191,372
Integrys Energy Group, Inc. .................... 12,871 722,063
Pinnacle West Capital Corp. .................... 8,982 433,741
PPL Corp. ...................................... 4,079 177,885
Progress Energy, Inc. .......................... 9,325 471,379
Southern Co. ................................... 7,833 296,009
------------
TOTAL ELECTRIC UTILITIES 3,436,000
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.5%
Sanmina-SCI Corp.*.............................. 196,973 679,557
Solectron Corp.*................................ 125,003 418,760
------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,098,317
------------
FOOD & STAPLES RETAILING 3.5%
Costco Wholesale Corp. ......................... 3,381 181,120
Kroger Co. ..................................... 12,721 375,397
Safeway, Inc. .................................. 7,235 262,631
SUPERVALU, Inc. ................................ 15,655 718,564
------------
TOTAL FOOD & STAPLES RETAILING 1,537,712
------------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 32
RYDEX S&P 500 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- --------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FOOD PRODUCTS 3.0%
ConAgra Foods, Inc. ............................ 8,970 $220,483
Kraft Foods, Inc. .............................. 5,197 173,943
Sara Lee Corp. ................................. 19,127 313,874
Tyson Foods, Inc. -- Class A.................... 28,158 590,192
------------
TOTAL FOOD PRODUCTS 1,298,492
------------
GAS UTILITIES 0.9%
Nicor, Inc. .................................... 7,279 372,976
------------
TOTAL GAS UTILITIES 372,976
------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.3%
Bausch & Lomb, Inc. ............................ 2,140 125,896
------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 125,896
------------
HEALTH CARE PROVIDERS & SERVICES 3.0%
AmerisourceBergen Corp. ........................ 8,957 447,761
McKesson Corp. ................................. 6,392 376,041
Medco Health Solutions, Inc.*................... 2,582 201,448
Tenet Healthcare Corp.*......................... 35,610 264,226
------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,289,476
------------
HOTELS, RESTAURANTS & LEISURE 0.4%
Wyndham Worldwide Corp.*........................ 5,470 189,262
------------
TOTAL HOTELS, RESTAURANTS & LEISURE 189,262
------------
HOUSEHOLD DURABLES 2.2%
Leggett & Platt, Inc. .......................... 11,976 281,675
Newell Rubbermaid, Inc.*........................ 4,389 134,611
Stanley Works................................... 2,238 130,431
Whirlpool Corp. ................................ 3,938 417,546
------------
TOTAL HOUSEHOLD DURABLES 964,263
------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.8%
Dynegy, Inc.*................................... 36,252 341,131
------------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS
341,131
------------
INSURANCE 7.8%
ACE Ltd. ....................................... 5,321 316,387
Allstate Corp................................... 4,717 293,963
Chubb Corp. .................................... 3,334 179,469
Cincinnati Financial Corp. ..................... 7,480 338,395
Genworth Financial, Inc. -- Class A............. 6,496 237,039
Hartford Financial Services Group, Inc. ........ 2,764 279,717
Lincoln National Corp. ......................... 3,603 256,353
SAFECO Corp. ................................... 3,165 211,232
Travelers Cos., Inc. (The)...................... 6,085 329,199
UnumProvident Corp. ............................ 18,078 449,781
XL Capital Ltd. -- Class A...................... 6,126 477,706
------------
TOTAL INSURANCE 3,369,241
------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- --------------------------------------------------------------------------
IT SERVICES 1.2%
Computer Sciences Corp.*........................ 4,433 $246,209
Electronic Data Systems Corp. .................. 4,139 121,024
Unisys Corp.*................................... 18,127 142,116
------------
TOTAL IT SERVICES 509,349
------------
LEISURE EQUIPMENT & PRODUCTS 1.5%
Brunswick Corp. ................................ 11,285 369,696
Eastman Kodak Co. .............................. 10,981 273,537
------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 643,233
------------
MACHINERY 1.4%
Cummins, Inc. .................................. 4,090 376,934
PACCAR, Inc. ................................... 2,547 213,897
------------
TOTAL MACHINERY 590,831
------------
MEDIA 2.7%
CBS Corp. -- Class B............................ 11,928 378,953
Dow Jones & Co., Inc. .......................... 3,787 137,582
Gannett Co., Inc. .............................. 2,352 134,205
New York Times Co. -- Class A................... 7,517 175,898
Time Warner, Inc. .............................. 6,880 141,934
Tribune Co. .................................... 6,323 207,394
------------
TOTAL MEDIA 1,175,966
------------
METALS & MINING 1.6%
Alcoa, Inc. .................................... 7,816 277,390
Freeport-McMoRan Copper & Gold, Inc. -- Class
B............................................. 2,738 183,884
United States Steel Corp. ...................... 2,157 219,022
------------
TOTAL METALS & MINING 680,296
------------
MULTI-UTILITIES 11.4%
Ameren Corp. ................................... 6,348 333,714
CenterPoint Energy, Inc. ....................... 23,160 436,103
CMS Energy Corp. ............................... 18,301 338,935
Consolidated Edison, Inc. ...................... 8,371 429,097
Dominion Resources, Inc. ....................... 3,100 282,720
DTE Energy Co. ................................. 10,497 531,043
KeySpan Corp. .................................. 11,911 493,235
NiSource, Inc. ................................. 20,402 501,685
PG&E Corp. ..................................... 4,862 246,017
Public Service Enterprise Group, Inc. .......... 3,771 326,003
Sempra Energy................................... 3,787 240,399
TECO Energy, Inc. .............................. 18,312 328,700
Xcel Energy, Inc. .............................. 19,072 459,445
------------
TOTAL MULTI-UTILITIES 4,947,096
------------
MULTILINE RETAIL 1.5%
Dillard's, Inc. -- Class A...................... 15,006 519,658
Federated Department Stores, Inc. .............. 2,989 131,277
------------
TOTAL MULTILINE RETAIL 650,935
------------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 33
RYDEX S&P 500 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- --------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
OIL, GAS & CONSUMABLE FUELS 2.3%
ConocoPhillips.................................. 5,864 $406,668
Hess Corp.*..................................... 4,980 282,615
Marathon Oil Corp. ............................. 3,022 306,884
------------
TOTAL OIL, GAS & CONSUMABLE FUELS 996,167
------------
PAPER & FOREST PRODUCTS 2.4%
International Paper Co. ........................ 7,165 270,264
MeadWestvaco Corp. ............................. 11,627 387,877
Weyerhaeuser Co. ............................... 4,691 371,621
------------
TOTAL PAPER & FOREST PRODUCTS 1,029,762
------------
PHARMACEUTICALS 0.4%
Bristol-Myers Squibb Co. ....................... 5,590 161,327
------------
TOTAL PHARMACEUTICALS 161,327
------------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.3%
Apartment Investment & Management Co. -- Class
A............................................. 3,782 209,145
Boston Properties, Inc. ........................ 1,434 168,581
Plum Creek Timber Co., Inc. .................... 4,917 195,205
------------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 572,931
------------
ROAD & RAIL 1.2%
Ryder System, Inc. ............................. 6,731 354,320
Union Pacific Corp. ............................ 1,514 172,974
------------
TOTAL ROAD & RAIL 527,294
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.2%
Micron Technology, Inc.*........................ 8,756 100,431
------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 100,431
------------
SPECIALTY RETAIL 2.0%
AutoNation, Inc.*............................... 20,989 429,015
Circuit City Stores, Inc. ...................... 8,851 154,450
OfficeMax, Inc. ................................ 5,401 265,837
------------
TOTAL SPECIALTY RETAIL 849,302
------------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- --------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS 0.5%
Jones Apparel Group, Inc. ...................... 6,180 $206,350
------------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 206,350
------------
THRIFTS & MORTGAGE FINANCE 2.6%
Federal National Mortgage Association........... 12,535 738,562
Washington Mutual, Inc. ........................ 9,205 386,426
------------
TOTAL THRIFTS & MORTGAGE FINANCE 1,124,988
------------
TOBACCO 0.3%
Reynolds American, Inc. ........................ 2,321 149,147
------------
TOTAL TOBACCO 149,147
------------
WIRELESS TELECOMMUNICATION SERVICES 1.4%
ALLTEL Corp. ................................... 4,797 300,724
Sprint Nextel Corp. ............................ 16,204 324,566
------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 625,290
------------
TOTAL COMMON STOCKS
(Cost $39,886,710) 43,238,797
------------
SHORT TERM INVESTMENTS 0.2%
SSgA Prime Money Market Fund.................... 102,225 102,225
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $102,225) 102,225
------------
TOTAL INVESTMENTS 99.9%
(Cost $39,988,935) 43,341,022
------------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 42,131
------------
NET ASSETS--100.0% $43,383,153
- --------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 34
RYDEX S&P 500 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS 99.7%
AEROSPACE & DEFENSE 2.5%
General Dynamics Corp. ......................... 4,089 $320,986
L-3 Communications Holdings, Inc. .............. 4,335 389,847
Rockwell Collins, Inc. ......................... 5,253 344,965
United Technologies Corp. ...................... 3,478 233,478
-----------
TOTAL AEROSPACE & DEFENSE 1,289,276
-----------
AIR FREIGHT & LOGISTICS 0.6%
C.H. Robinson Worldwide, Inc. .................. 5,931 317,071
-----------
TOTAL AIR FREIGHT & LOGISTICS 317,071
-----------
AUTOMOBILES 0.8%
Harley-Davidson, Inc. .......................... 6,419 406,451
-----------
TOTAL AUTOMOBILES 406,451
-----------
BEVERAGES 2.4%
Anheuser-Busch Cos., Inc. ...................... 6,831 336,017
Brown-Forman Corp. -- Class B................... 3,197 204,384
Pepsi Bottling Group, Inc. ..................... 12,669 415,670
PepsiCo, Inc. .................................. 3,774 249,424
-----------
TOTAL BEVERAGES 1,205,495
-----------
BIOTECHNOLOGY 2.8%
Amgen, Inc.*.................................... 4,900 314,286
Celgene Corp.*.................................. 3,989 243,967
Genzyme Corp.*.................................. 3,144 205,335
Gilead Sciences, Inc.*.......................... 7,941 648,938
-----------
TOTAL BIOTECHNOLOGY 1,412,526
-----------
BUILDING PRODUCTS 0.7%
American Standard Cos., Inc. ................... 6,339 349,025
-----------
TOTAL BUILDING PRODUCTS 349,025
-----------
CAPITAL MARKETS 0.8%
Federated Investors, Inc. -- Class B............ 10,418 397,551
-----------
TOTAL CAPITAL MARKETS 397,551
-----------
CHEMICALS 1.9%
Ecolab, Inc. ................................... 6,706 288,291
International Flavors & Fragrances, Inc. ....... 4,250 206,847
Praxair, Inc. .................................. 2,896 186,937
Sigma-Aldrich Corp. ............................ 6,969 293,256
-----------
TOTAL CHEMICALS 975,331
-----------
COMMERCIAL BANKS 0.6%
Commerce Bancorp, Inc. ......................... 8,432 281,966
-----------
TOTAL COMMERCIAL BANKS 281,966
-----------
COMMERCIAL SERVICES & SUPPLIES 0.8%
Cintas Corp. ................................... 4,735 177,420
Pitney Bowes, Inc. ............................. 4,981 239,088
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 416,508
-----------
COMMUNICATIONS EQUIPMENT 1.0%
Cisco Systems, Inc.*............................ 9,216 246,436
QUALCOMM, Inc. ................................. 6,112 267,705
-----------
TOTAL COMMUNICATIONS EQUIPMENT 514,141
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 3.1%
Dell, Inc.*..................................... 14,459 $364,511
International Business Machines Corp. .......... 2,565 262,169
Lexmark International, Inc. -- Class A*......... 4,532 246,994
Network Appliance, Inc.*........................ 5,769 214,665
QLogic Corp.*................................... 14,758 263,873
SanDisk Corp.*.................................. 5,794 251,749
-----------
TOTAL COMPUTERS & PERIPHERALS 1,603,961
-----------
CONSUMER FINANCE 1.8%
American Express Co. ........................... 3,395 205,975
Capital One Financial Corp. .................... 4,670 346,794
SLM Corp. ...................................... 7,100 382,193
-----------
TOTAL CONSUMER FINANCE 934,962
-----------
CONTAINERS & PACKAGING 1.1%
Ball Corp. ..................................... 7,006 355,134
Pactiv Corp.*................................... 6,307 218,096
-----------
TOTAL CONTAINERS & PACKAGING 573,230
-----------
DIVERSIFIED CONSUMER SERVICES 2.0%
Apollo Group, Inc. -- Class A*.................. 13,273 627,813
H&R Block, Inc. ................................ 18,310 413,989
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 1,041,802
-----------
DIVERSIFIED FINANCIAL SERVICES 1.6%
Chicago Mercantile Exchange Holdings, Inc. ..... 784 405,132
Moody's Corp. .................................. 6,574 434,673
-----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 839,805
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Jabil Circuit, Inc. ............................ 6,685 155,761
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS.......... 155,761
-----------
ENERGY EQUIPMENT & SERVICES 2.4%
BJ Services Co. ................................ 9,436 270,436
Nabors Industries Ltd.*......................... 8,821 283,331
National-Oilwell Varco, Inc.*................... 2,917 247,507
Noble Corp. .................................... 1,652 139,115
Smith International, Inc. ...................... 6,033 316,370
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 1,256,759
-----------
FOOD & STAPLES RETAILING 1.7%
Sysco Corp. .................................... 9,214 301,666
Wal-Mart Stores, Inc. .......................... 6,175 295,906
Walgreen Co. ................................... 6,561 288,028
-----------
TOTAL FOOD & STAPLES RETAILING 885,600
-----------
FOOD PRODUCTS 2.5%
Campbell Soup Co. .............................. 6,371 249,106
Hershey Co. (The)............................... 4,595 252,541
Kellogg Co. .................................... 5,456 288,677
McCormick & Co, Inc. ........................... 5,528 205,199
Wm. Wrigley Jr. Co. ............................ 4,893 288,100
-----------
TOTAL FOOD PRODUCTS 1,283,623
-----------
GAS UTILITIES 0.5%
Questar Corp. .................................. 2,397 232,821
-----------
TOTAL GAS UTILITIES 232,821
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 35
RYDEX S&P 500 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES 8.2%
Baxter International, Inc. ..................... 3,773 $213,665
Becton Dickinson & Co. ......................... 3,015 237,250
Biomet, Inc. ................................... 9,152 395,366
Boston Scientific Corp.*........................ 17,132 264,518
C.R. Bard, Inc. ................................ 2,886 239,913
Hospira, Inc.*.................................. 18,039 731,482
Medtronic, Inc. ................................ 5,953 315,092
St Jude Medical, Inc.*.......................... 9,121 390,288
Stryker Corp. .................................. 7,115 462,048
Varian Medical Systems, Inc.*................... 8,275 349,288
Zimmer Holdings, Inc.*.......................... 6,850 619,788
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 4,218,698
-----------
HEALTH CARE PROVIDERS & SERVICES 6.6%
Cardinal Health, Inc. .......................... 5,202 363,880
Coventry Health Care, Inc.*..................... 10,838 626,762
Express Scripts, Inc.*.......................... 7,735 739,079
Humana, Inc.*................................... 3,663 231,648
Laboratory Corp. of America Holdings*........... 2,434 192,140
Patterson Cos., Inc.*........................... 10,536 379,928
Quest Diagnostics, Inc. ........................ 7,461 364,768
UnitedHealth Group, Inc. ....................... 8,939 474,304
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 3,372,509
-----------
HEALTH CARE TECHNOLOGY 0.6%
IMS Health, Inc. ............................... 11,158 327,264
-----------
TOTAL HEALTH CARE TECHNOLOGY 327,264
-----------
HOTELS, RESTAURANTS & LEISURE 2.6%
Darden Restaurants, Inc. ....................... 7,868 326,364
International Game Technology, Inc. ............ 10,034 382,697
Starbucks Corp.*................................ 11,484 356,234
Yum! Brands, Inc. .............................. 4,563 282,267
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,347,562
-----------
HOUSEHOLD DURABLES 2.2%
Black & Decker Corp. ........................... 3,311 300,374
D.R. Horton, Inc. .............................. 18,378 407,624
Harman International Industries, Inc. .......... 3,347 407,966
-----------
TOTAL HOUSEHOLD DURABLES 1,115,964
-----------
HOUSEHOLD PRODUCTS 1.7%
Clorox Co. ..................................... 4,595 308,233
Colgate-Palmolive Co. .......................... 4,425 299,750
Procter & Gamble Co. ........................... 4,169 268,108
-----------
TOTAL HOUSEHOLD PRODUCTS 876,091
-----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.4%
AES Corp.*...................................... 8,929 196,349
-----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS
196,349
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
INSURANCE 2.1%
Ambac Financial Group, Inc. .................... 4,019 $368,944
American International Group, Inc. ............. 3,531 246,853
Progressive Corp. .............................. 21,016 484,839
-----------
TOTAL INSURANCE 1,100,636
-----------
INTERNET & CATALOG RETAIL 1.8%
Amazon.Com, Inc.*............................... 15,428 946,199
-----------
TOTAL INTERNET & CATALOG RETAIL 946,199
-----------
INTERNET SOFTWARE & SERVICES 3.0%
eBay, Inc.*..................................... 15,763 534,996
Google, Inc. -- Class A*........................ 1,286 606,195
Yahoo!, Inc.*................................... 13,337 373,969
-----------
TOTAL INTERNET SOFTWARE & SERVICES 1,515,160
-----------
IT SERVICES 4.8%
Affiliated Computer Services, Inc. -- Class
A*............................................ 6,234 373,479
Automatic Data Processing, Inc. ................ 4,099 183,471
Cognizant Technology Solutions Corp. -- Class
A*............................................ 6,878 614,893
Fidelity National Information Services, Inc. ... 3,146 158,967
First Data Corp. ............................... 16,431 532,364
Fiserv, Inc.*................................... 7,263 386,174
Paychex, Inc. .................................. 6,425 238,368
-----------
TOTAL IT SERVICES 2,487,716
-----------
LIFE SCIENCES TOOLS & SERVICES 1.4%
Applera Corp. -- Applied Biosystems Group....... 3,847 120,180
Millipore Corp.*................................ 2,271 167,668
Waters Corp.*................................... 6,912 410,780
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 698,628
-----------
MACHINERY 1.1%
Danaher Corp. .................................. 3,965 282,268
ITT Corp. ...................................... 4,405 281,083
-----------
TOTAL MACHINERY 563,351
-----------
MEDIA 1.0%
McGraw-Hill Cos., Inc. ......................... 3,182 208,516
Omnicom Group, Inc. ............................ 2,705 283,241
-----------
TOTAL MEDIA 491,757
-----------
METALS & MINING 1.0%
Newmont Mining Corp. (Holding Co.).............. 4,917 205,039
Nucor Corp. .................................... 5,036 319,584
-----------
TOTAL METALS & MINING 524,623
-----------
MULTILINE RETAIL 0.7%
Kohl's Corp.*................................... 5,096 377,308
-----------
TOTAL MULTILINE RETAIL 377,308
-----------
OIL, GAS & CONSUMABLE FUELS 6.7%
Anadarko Petroleum Corp. ....................... 7,223 337,025
Apache Corp. ................................... 6,987 506,558
Chesapeake Energy Corp. ........................ 11,547 389,711
Devon Energy Corp. ............................. 6,387 465,421
EOG Resources, Inc. ............................ 5,978 439,024
Exxon Mobil Corp. .............................. 3,258 258,620
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 36
RYDEX S&P 500 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Murphy Oil Corp. ............................... 7,142 $395,953
XTO Energy, Inc. ............................... 12,375 671,591
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 3,463,903
-----------
PERSONAL PRODUCTS 1.3%
Avon Products, Inc. ............................ 9,709 386,418
Estee Lauder Cos., Inc -- Class A............... 5,801 298,288
-----------
TOTAL PERSONAL PRODUCTS 684,706
-----------
PHARMACEUTICALS 3.7%
Allergan, Inc. ................................. 1,399 169,559
Barr Pharmaceuticals, Inc.*..................... 6,751 326,478
Forest Laboratories, Inc.*...................... 11,118 591,589
Johnson & Johnson............................... 4,136 265,614
Mylan Laboratories, Inc. ....................... 14,365 315,024
Wyeth........................................... 4,360 241,980
-----------
TOTAL PHARMACEUTICALS 1,910,244
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.4%
KLA-Tencor Corp. ............................... 2,405 133,598
National Semiconductor Corp. ................... 10,356 272,363
NVIDIA Corp.*................................... 10,195 335,313
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 741,274
-----------
SOFTWARE 4.4%
Adobe Systems, Inc.*............................ 7,212 299,731
Autodesk, Inc.*................................. 5,978 246,712
Citrix Systems, Inc.*........................... 9,441 307,777
Electronic Arts, Inc.*.......................... 7,694 387,855
Intuit, Inc.*................................... 16,623 472,924
Oracle Corp.*................................... 15,830 297,604
Symantec Corp.*................................. 15,217 267,819
-----------
TOTAL SOFTWARE 2,280,422
-----------
SPECIALTY RETAIL 7.4%
Abercrombie & Fitch Co. -- Class A.............. 5,542 452,560
AutoZone, Inc.*................................. 3,768 501,295
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
Bed Bath & Beyond, Inc.*........................ 11,732 $477,962
Best Buy Co., Inc. ............................. 7,508 350,248
Home Depot, Inc. ............................... 8,145 308,451
Lowe's Cos., Inc. .............................. 12,133 370,784
RadioShack Corp. ............................... 16,949 492,707
Staples, Inc. .................................. 8,337 206,758
Tiffany & Co. .................................. 5,432 259,052
TJX Cos., Inc. ................................. 14,048 391,799
-----------
TOTAL SPECIALTY RETAIL 3,811,616
-----------
TEXTILES, APPAREL & LUXURY GOODS 2.8%
Coach, Inc.*.................................... 13,708 669,362
Liz Claiborne, Inc. ............................ 5,835 260,941
Nike, Inc. -- Class B........................... 5,390 290,306
Polo Ralph Lauren Corp. ........................ 2,394 220,511
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 1,441,120
-----------
THRIFTS & MORTGAGE FINANCE 0.9%
Countrywide Financial Corp. .................... 12,622 468,024
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 468,024
-----------
TOTAL COMMON STOCKS
(Cost $48,764,230) 51,334,789
-----------
SHORT TERM INVESTMENTS 0.3%
SSgA Prime Money Market Fund.................... 143,428 143,428
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $143,428) 143,428
-----------
TOTAL INVESTMENTS 100.0%
(Cost $48,907,658) 51,478,217
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 7,316
-----------
NET ASSETS--100.0% $51,485,533
- -------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 37
RYDEX S&P MIDCAP 400 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.7%
AIRLINES 0.2%
Alaska Air Group, Inc.*......................... 1,760 $52,096
-----------
TOTAL AIRLINES 52,096
-----------
AUTO COMPONENTS 6.1%
ArvinMeritor, Inc. ............................. 11,154 230,330
Bandag, Inc. ................................... 3,307 166,805
BorgWarner, Inc. ............................... 1,817 141,563
Lear Corp.*..................................... 14,538 533,835
Modine Manufacturing Co. ....................... 13,043 301,685
-----------
TOTAL AUTO COMPONENTS 1,374,218
-----------
BEVERAGES 0.7%
PepsiAmericas, Inc. ............................ 6,409 154,713
-----------
TOTAL BEVERAGES 154,713
-----------
CHEMICALS 8.7%
Cabot Corp. .................................... 1,483 67,180
Chemtura Corp. ................................. 21,294 234,873
Cytec Industries, Inc. ......................... 1,967 107,988
Ferro Corp. .................................... 12,664 263,538
Lubrizol Corp. ................................. 2,655 159,141
Lyondell Chemical Co. .......................... 15,239 474,238
Olin Corp. ..................................... 18,381 315,050
RPM International, Inc. ........................ 7,897 167,969
Sensient Technologies Corp. .................... 5,485 143,597
-----------
TOTAL CHEMICALS 1,933,574
-----------
COMMERCIAL BANKS 1.8%
Associated Banc-Corp. .......................... 3,414 110,545
Colonial BancGroup, Inc. ....................... 3,066 73,768
FirstMerit Corp. ............................... 6,225 129,978
Greater Bay Bancorp............................. 3,573 92,148
-----------
TOTAL COMMERCIAL BANKS 406,439
-----------
COMMERCIAL SERVICES & SUPPLIES 3.0%
Deluxe Corp. ................................... 8,008 303,103
Kelly Services, Inc. ........................... 9,542 273,855
Manpower, Inc. ................................. 1,261 101,195
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 678,153
-----------
COMMUNICATIONS EQUIPMENT 0.5%
Andrew Corp.*................................... 10,616 115,927
-----------
TOTAL COMMUNICATIONS EQUIPMENT 115,927
-----------
CONSUMER FINANCE 0.4%
AmeriCredit Corp.*.............................. 3,838 96,833
-----------
TOTAL CONSUMER FINANCE 96,833
-----------
CONTAINERS & PACKAGING 1.3%
Packaging Corp. of America...................... 7,638 189,117
Sonoco Products Co. ............................ 2,285 97,432
-----------
TOTAL CONTAINERS & PACKAGING 286,549
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
ELECTRIC UTILITIES 8.0%
DPL, Inc. ...................................... 3,373 $105,744
Duquesne Light Holdings, Inc. .................. 6,750 134,595
Great Plains Energy, Inc. ...................... 7,887 257,432
Hawaiian Electric Industries, Inc. ............. 8,562 225,352
Idacorp, Inc. .................................. 3,912 134,768
Northeast Utilities............................. 9,291 298,891
Pepco Holdings, Inc. ........................... 10,923 322,447
Sierra Pacific Resources*....................... 5,080 92,761
Westar Energy, Inc. ............................ 7,677 208,968
-----------
TOTAL ELECTRIC UTILITIES 1,780,958
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 6.2%
Arrow Electronics, Inc.*........................ 5,187 204,990
Avnet, Inc.*.................................... 10,369 424,092
Ingram Micro, Inc. -- Class A*.................. 11,951 234,479
KEMET Corp.*.................................... 11,543 97,885
Tech Data Corp.*................................ 4,620 164,195
Vishay Intertechnology, Inc.*................... 15,025 250,166
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,375,807
-----------
FOOD & STAPLES RETAILING 1.9%
BJ's Wholesale Club, Inc.*...................... 5,338 184,321
Ruddick Corp. .................................. 7,842 235,495
-----------
TOTAL FOOD & STAPLES RETAILING 419,816
-----------
FOOD PRODUCTS 2.5%
J.M. Smucker Co. ............................... 2,580 144,016
Lancaster Colony Corp. ......................... 3,483 147,087
Smithfield Foods, Inc.*......................... 8,776 268,282
-----------
TOTAL FOOD PRODUCTS 559,385
-----------
GAS UTILITIES 4.2%
AGL Resources, Inc. ............................ 5,244 228,324
National Fuel Gas Co. .......................... 3,801 178,685
Oneok, Inc. .................................... 5,403 261,559
WGL Holdings, Inc. ............................. 8,018 271,329
-----------
TOTAL GAS UTILITIES 939,897
-----------
HOTELS, RESTAURANTS & LEISURE 0.6%
Bob Evans Farms, Inc. .......................... 3,798 139,387
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 139,387
-----------
HOUSEHOLD DURABLES 4.6%
American Greetings Corp. -- Class A............. 7,306 185,938
Beazer Homes USA, Inc. ......................... 5,465 182,422
Furniture Brands International, Inc. ........... 26,943 433,243
Tupperware Brands Corp. ........................ 8,365 235,224
-----------
TOTAL HOUSEHOLD DURABLES 1,036,827
-----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.4%
Black Hills Corp. .............................. 8,109 322,819
-----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS
322,819
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 38
RYDEX S&P MIDCAP 400 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
INDUSTRIAL CONGLOMERATES 0.5%
Sequa Corp.*.................................... 873 $102,316
-----------
TOTAL INDUSTRIAL CONGLOMERATES 102,316
-----------
INSURANCE 7.4%
American Financial Group, Inc. ................. 4,389 154,800
Fidelity National Financial, Inc. -- Class A.... 6,472 164,971
First American Corp. ........................... 6,829 351,693
Horace Mann Educators Corp. .................... 7,215 151,804
Mercury General Corp. .......................... 3,130 169,489
Ohio Casualty Corp. ............................ 3,704 117,195
Old Republic International Corp. ............... 10,610 225,675
Protective Life Corp. .......................... 2,711 127,146
Unitrin, Inc. .................................. 4,261 200,906
-----------
TOTAL INSURANCE 1,663,679
-----------
LEISURE EQUIPMENT & PRODUCTS 0.5%
Callaway Golf Co. .............................. 6,287 112,914
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 112,914
-----------
MACHINERY 2.0%
Kennametal, Inc. ............................... 1,176 82,979
Pentair, Inc. .................................. 2,243 72,090
Timken Co. ..................................... 8,581 283,001
-----------
TOTAL MACHINERY 438,070
-----------
MARINE 0.6%
Alexander & Baldwin, Inc. ...................... 2,579 137,848
-----------
TOTAL MARINE 137,848
-----------
MEDIA 4.5%
Belo Corp. -- Class A........................... 9,983 192,372
Lee Enterprises, Inc. .......................... 5,263 137,785
Media General, Inc. -- Class A.................. 4,873 179,034
Scholastic Corp.*............................... 4,778 147,497
Westwood One, Inc. ............................. 49,944 340,119
-----------
TOTAL MEDIA 996,807
-----------
METALS & MINING 1.3%
Worthington Industries.......................... 13,068 290,763
-----------
TOTAL METALS & MINING 290,763
-----------
MULTI-UTILITIES 8.8%
Alliant Energy Corp. ........................... 4,027 176,383
Energy East Corp. .............................. 14,470 350,463
NSTAR........................................... 3,328 119,475
OGE Energy Corp. ............................... 5,168 198,658
PNM Resources, Inc. ............................ 5,594 182,085
Puget Energy, Inc. ............................. 12,226 315,675
SCANA Corp. .................................... 6,331 275,588
Vectren Corp. .................................. 8,097 235,380
Wisconsin Energy Corp. ......................... 2,238 109,192
-----------
TOTAL MULTI-UTILITIES 1,962,899
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
MULTILINE RETAIL 0.6%
Saks, Inc. ..................................... 6,329 $132,529
-----------
TOTAL MULTILINE RETAIL 132,529
-----------
OIL, GAS & CONSUMABLE FUELS 1.4%
Forest Oil Corp.*............................... 3,223 113,579
Overseas Shipholding Group, Inc. ............... 2,889 204,541
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 318,120
-----------
PAPER & FOREST PRODUCTS 2.9%
Bowater, Inc. .................................. 14,867 325,439
Glatfelter...................................... 7,537 112,678
Louisiana-Pacific Corp. ........................ 10,426 205,496
-----------
TOTAL PAPER & FOREST PRODUCTS 643,613
-----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 4.5%
Cousins Properties, Inc. ....................... 3,375 113,299
Highwoods Properties, Inc. ..................... 2,753 112,267
Hospitality Properties Trust.................... 3,222 146,698
Liberty Property Trust.......................... 2,543 123,056
Mack-Cali Realty Corp. ......................... 2,454 120,172
Potlatch Corp. ................................. 4,368 189,527
Rayonier, Inc. ................................. 2,686 116,492
Weingarten Realty Investors..................... 1,614 77,246
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 998,757
-----------
ROAD & RAIL 5.6%
Avis Budget Group, Inc.*........................ 22,548 634,275
Con-way, Inc. .................................. 2,167 118,383
Werner Enterprises, Inc. ....................... 6,807 128,720
YRC Worldwide, Inc.*............................ 9,345 371,838
-----------
TOTAL ROAD & RAIL 1,253,216
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.3%
Fairchild Semiconductor International, Inc.*.... 3,675 64,680
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 64,680
-----------
SPECIALTY RETAIL 1.6%
Borders Group, Inc. ............................ 9,931 209,644
Foot Locker, Inc. .............................. 6,023 143,287
-----------
TOTAL SPECIALTY RETAIL 352,931
-----------
THRIFTS & MORTGAGE FINANCE 2.0%
Astoria Financial Corp. ........................ 2,478 65,816
First Niagara Financial Group, Inc. ............ 11,027 149,967
Washington Federal, Inc. ....................... 5,894 139,747
Webster Financial Corp. ........................ 1,836 81,610
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 437,140
-----------
TOBACCO 2.0%
Universal Corp. ................................ 7,140 447,535
-----------
TOTAL TOBACCO 447,535
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 39
RYDEX S&P MIDCAP 400 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
TRADING COMPANIES & DISTRIBUTORS 0.7%
United Rentals, Inc.*........................... 4,844 $162,274
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 162,274
-----------
WIRELESS TELECOMMUNICATION SERVICES 0.4%
Telephone & Data Systems, Inc. ................. 1,404 79,958
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 79,958
-----------
TOTAL COMMON STOCKS
(Cost $21,617,484) 22,269,447
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
SHORT TERM INVESTMENTS 0.2%
SSgA Prime Money Market Fund.................... 52,076 $52,076
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $52,076) 52,076
-----------
TOTAL INVESTMENTS 99.9%
(Cost $21,669,560) 22,321,523
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 18,213
-----------
NET ASSETS--100.0% $22,339,736
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 40
RYDEX S&P MIDCAP 400 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.9%
AEROSPACE & DEFENSE 1.2%
Alliant Techsystems, Inc.*...................... 2,834 $263,930
-----------
TOTAL AEROSPACE & DEFENSE 263,930
-----------
AIR FREIGHT & LOGISTICS 0.8%
Expeditors International Washington, Inc. ...... 4,374 182,833
-----------
TOTAL AIR FREIGHT & LOGISTICS 182,833
-----------
AIRLINES 0.5%
Airtran Holdings, Inc.*......................... 10,215 112,467
-----------
TOTAL AIRLINES 112,467
-----------
AUTOMOBILES 0.9%
Thor Industries, Inc. .......................... 5,144 204,886
-----------
TOTAL AUTOMOBILES 204,886
-----------
BEVERAGES 1.0%
Hansen Natural Corp.*........................... 6,008 229,506
-----------
TOTAL BEVERAGES 229,506
-----------
BIOTECHNOLOGY 1.1%
Cephalon, Inc.*................................. 3,018 240,263
-----------
TOTAL BIOTECHNOLOGY 240,263
-----------
CAPITAL MARKETS 4.4%
Eaton Vance Corp. .............................. 5,721 218,657
Investors Financial Services Corp. ............. 4,913 304,016
Nuveen Investments, Inc. -- Class A............. 3,111 165,816
SEI Investments Co. ............................ 2,783 169,847
Waddell & Reed Financial, Inc. -- Class A....... 4,862 117,758
-----------
TOTAL CAPITAL MARKETS 976,094
-----------
COMMERCIAL SERVICES & SUPPLIES 4.4%
ChoicePoint, Inc.*.............................. 2,951 112,050
Copart, Inc.*................................... 4,930 142,872
Corporate Executive Board Co. .................. 2,291 145,799
Dun & Bradstreet Corp. ......................... 999 90,210
Mine Safety Appliances Co. ..................... 3,674 154,859
Rollins, Inc. .................................. 7,404 170,810
Stericycle, Inc.*............................... 2,045 178,201
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 994,801
-----------
COMMUNICATIONS EQUIPMENT 0.8%
Plantronics, Inc. .............................. 7,329 184,031
-----------
TOTAL COMMUNICATIONS EQUIPMENT 184,031
-----------
COMPUTERS & PERIPHERALS 1.1%
Western Digital Corp.*.......................... 13,425 237,354
-----------
TOTAL COMPUTERS & PERIPHERALS 237,354
-----------
CONSTRUCTION & ENGINEERING 0.6%
Jacobs Engineering Group, Inc.*................. 2,683 135,304
-----------
TOTAL CONSTRUCTION & ENGINEERING 135,304
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES 5.8%
Career Education Corp.*......................... 10,763 $317,939
Corinthian Colleges, Inc.*...................... 22,348 309,073
DeVry, Inc. .................................... 3,285 108,372
ITT Educational Services, Inc.*................. 3,172 308,350
Strayer Education, Inc. ........................ 2,086 259,373
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 1,303,107
-----------
DIVERSIFIED FINANCIAL SERVICES 0.8%
Leucadia National Corp. ........................ 5,647 170,201
-----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 170,201
-----------
ELECTRICAL EQUIPMENT 0.9%
AMETEK, Inc. ................................... 2,849 103,362
Roper Industries, Inc. ......................... 1,731 97,040
-----------
TOTAL ELECTRICAL EQUIPMENT 200,402
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.5%
Amphenol Corp. ................................. 4,381 153,817
CDW Corp. ...................................... 2,444 175,992
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 329,809
-----------
ENERGY EQUIPMENT & SERVICES 2.1%
FMC Technologies, Inc.*......................... 1,886 133,680
Patterson-UTI Energy, Inc. ..................... 5,470 133,413
Superior Energy Services, Inc.*................. 5,818 211,368
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 478,461
-----------
GAS UTILITIES 0.6%
Equitable Resources, Inc. ...................... 2,426 126,176
-----------
TOTAL GAS UTILITIES 126,176
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 4.6%
Cytyc Corp.*.................................... 9,191 323,799
Dentsply International, Inc. ................... 4,559 152,316
Edwards Lifesciences Corp.*..................... 1,700 83,300
Gen-Probe, Inc.*................................ 5,751 293,934
ResMed, Inc.*................................... 4,286 181,126
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,034,475
-----------
HEALTH CARE PROVIDERS & SERVICES 5.7%
Apria Healthcare Group, Inc.*................... 8,408 266,870
Community Health Systems, Inc.*................. 7,244 266,579
Health Management Associates, Inc. -- Class A... 18,309 195,723
Henry Schein, Inc.*............................. 2,794 145,651
Lincare Holdings, Inc.*......................... 5,701 224,848
Universal Health Services, Inc. -- Class B...... 2,888 175,359
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,275,030
-----------
HEALTH CARE TECHNOLOGY 0.7%
Cerner Corp.*................................... 2,849 151,681
-----------
TOTAL HEALTH CARE TECHNOLOGY 151,681
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 41
RYDEX S&P MIDCAP 400 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
HOTELS, RESTAURANTS & LEISURE 4.5%
Applebees International, Inc. .................. 7,478 $203,252
Brinker International, Inc. .................... 5,298 164,768
Cheesecake Factory (The)*....................... 6,613 182,519
International Speedway Corp. -- Class A......... 2,542 125,575
Ruby Tuesday, Inc. ............................. 5,182 138,670
Scientific Games Corp. -- Class A*.............. 5,810 193,415
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,008,199
-----------
HOUSEHOLD DURABLES 4.3%
Hovnanian Enterprises, Inc. -- Class A*......... 8,253 197,990
NVR, Inc.*...................................... 433 356,792
Ryland Group, Inc. ............................. 4,528 200,590
Toll Brothers, Inc.*............................ 6,907 205,690
-----------
TOTAL HOUSEHOLD DURABLES 961,062
-----------
HOUSEHOLD PRODUCTS 2.1%
Church & Dwight Co., Inc. ...................... 3,026 153,509
Energizer Holdings, Inc.*....................... 3,361 326,622
-----------
TOTAL HOUSEHOLD PRODUCTS 480,131
-----------
INSURANCE 3.4%
Brown & Brown, Inc. ............................ 8,220 211,665
Everest Re Group Ltd. .......................... 1,635 164,546
HCC Insurance Holdings, Inc. ................... 4,757 145,850
W.R. Berkley Corp. ............................. 7,188 233,538
-----------
TOTAL INSURANCE 755,599
-----------
IT SERVICES 3.9%
Alliance Data Systems Corp.*.................... 2,607 165,962
CSG Systems International*...................... 4,269 114,324
DST Systems, Inc.*.............................. 4,048 315,946
Global Payments, Inc. .......................... 3,884 147,514
SRA International, Inc. -- Class A*............. 5,403 131,995
-----------
TOTAL IT SERVICES 875,741
-----------
LIFE SCIENCES TOOLS & SERVICES 3.8%
Affymetrix, Inc.*............................... 4,046 106,288
Covance, Inc.*.................................. 1,311 79,316
Invitrogen Corp.*............................... 2,701 176,834
Pharmaceutical Product Development, Inc. ....... 4,961 178,943
Techne Corp.*................................... 3,142 185,284
Ventana Medical Systems, Inc.*.................. 2,669 129,687
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 856,352
-----------
MACHINERY 1.9%
Donaldson Co., Inc. ............................ 3,957 142,135
Graco, Inc. .................................... 3,619 142,951
Oshkosh Truck Corp. ............................ 2,501 139,906
-----------
TOTAL MACHINERY 424,992
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
MEDIA 3.2%
Catalina Marketing Corp. ....................... 4,169 $132,157
Entercom Communications Corp. -- Class A........ 5,509 152,820
Harte-Hanks, Inc. .............................. 3,740 97,614
John Wiley & Sons, Inc. -- Class A.............. 4,032 150,998
Valassis Communications, Inc.*.................. 9,242 177,077
-----------
TOTAL MEDIA 710,666
-----------
METALS & MINING 2.3%
Commercial Metals Co. .......................... 7,491 251,173
Steel Dynamics, Inc. ........................... 6,085 269,627
-----------
TOTAL METALS & MINING 520,800
-----------
MULTILINE RETAIL 2.0%
99 Cents Only Stores*........................... 15,730 224,939
Dollar Tree Stores, Inc.*....................... 5,576 219,248
-----------
TOTAL MULTILINE RETAIL 444,187
-----------
OFFICE ELECTRONICS 0.5%
Zebra Technologies Corp. -- Class A*............ 2,893 115,112
-----------
TOTAL OFFICE ELECTRONICS 115,112
-----------
OIL, GAS & CONSUMABLE FUELS 6.3%
Denbury Resources, Inc.*........................ 6,322 209,195
Frontier Oil Corp. ............................. 7,980 281,933
Newfield Exploration Co.*....................... 4,581 200,419
Pioneer Natural Resources Co. .................. 5,377 269,925
Pogo Producing Co. ............................. 5,158 248,925
Quicksilver Resources, Inc.*.................... 3,003 125,706
Southwestern Energy Co.*........................ 1,835 77,070
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 1,413,173
-----------
PHARMACEUTICALS 3.6%
Medicis Pharmaceutical Corp. -- Class A......... 4,253 129,291
Par Pharmaceutical Cos., Inc.*.................. 14,214 382,783
Sepracor, Inc.*................................. 5,401 289,926
-----------
TOTAL PHARMACEUTICALS 802,000
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.8%
Cree, Inc.*..................................... 8,110 165,444
Silicon Laboratories, Inc.*..................... 7,485 245,583
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT
411,027
-----------
SOFTWARE 2.9%
Activision, Inc.*............................... 4,468 89,360
Fair Isaac Corp. ............................... 3,014 107,630
Jack Henry & Associates, Inc. .................. 5,443 129,271
Macrovision Corp.*.............................. 5,644 136,980
McAfee, Inc.*................................... 5,419 176,063
-----------
TOTAL SOFTWARE 639,304
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 42
RYDEX S&P MIDCAP 400 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SPECIALTY RETAIL 12.5%
Advance Auto Parts, Inc. ....................... 5,552 $228,742
Aeropostale, Inc.*.............................. 9,747 401,089
American Eagle Outfitters....................... 4,558 134,324
Chico's FAS, Inc.*.............................. 13,257 349,455
Dick's Sporting Goods, Inc.*.................... 3,294 184,760
GameStop Corp. -- Class A*...................... 8,428 279,557
O'Reilly Automotive, Inc.*...................... 4,571 162,728
Pacific Sunwear Of California*.................. 10,325 216,102
Petsmart, Inc. ................................. 6,135 203,621
Ross Stores, Inc. .............................. 6,616 219,320
Urban Outfitters, Inc.*......................... 8,784 226,276
Williams-Sonoma, Inc. .......................... 5,663 199,451
-----------
TOTAL SPECIALTY RETAIL 2,805,425
-----------
TEXTILES, APPAREL & LUXURY GOODS 0.7%
Timberland Co. -- Class A*...................... 5,985 154,473
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 154,473
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS 0.7%
Fastenal Co. ................................... 3,722 $153,049
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 153,049
-----------
TOTAL COMMON STOCKS
(Cost $21,456,874) 22,362,103
-----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 29,109 29,109
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $29,109) 29,109
-----------
TOTAL INVESTMENTS 100.0%
(Cost $21,485,983) 22,391,212
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (3,087)
-----------
NET ASSETS--100.0% $22,388,125
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 43
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS 99.5%
AEROSPACE & DEFENSE 0.4%
Applied Signal Technology, Inc. ................ 6,072 $101,220
-----------
TOTAL AEROSPACE & DEFENSE 101,220
-----------
AIRLINES 1.7%
Frontier Airlines Holdings, Inc.*............... 16,986 100,557
Mesa Air Group, Inc.*........................... 28,696 193,985
SkyWest, Inc. .................................. 4,322 117,602
-----------
TOTAL AIRLINES 412,144
-----------
AUTO COMPONENTS 2.4%
Standard Motor Products, Inc. .................. 17,025 312,068
Superior Industries International............... 11,679 266,865
-----------
TOTAL AUTO COMPONENTS 578,933
-----------
AUTOMOBILES 2.3%
Coachmen Industries, Inc. ...................... 19,958 206,366
Fleetwood Enterprises, Inc.*.................... 14,636 121,918
Monaco Coach Corp. ............................. 14,014 214,834
-----------
TOTAL AUTOMOBILES 543,118
-----------
BUILDING PRODUCTS 1.1%
Apogee Enterprises, Inc. ....................... 3,600 86,688
Lennox International, Inc. ..................... 2,055 69,480
Universal Forest Products, Inc. ................ 2,522 117,172
-----------
TOTAL BUILDING PRODUCTS 273,340
-----------
CAPITAL MARKETS 1.3%
LaBranche & Co., Inc.*.......................... 13,731 111,770
Piper Jaffray Cos.*............................. 963 61,449
SWS Group, Inc. ................................ 5,046 131,146
-----------
TOTAL CAPITAL MARKETS 304,365
-----------
CHEMICALS 5.4%
Arch Chemicals, Inc. ........................... 3,853 116,438
Georgia Gulf Corp. ............................. 11,462 183,048
Material Sciences Corp.*........................ 6,091 56,768
Omnova Solutions, Inc.*......................... 20,432 107,472
Penford Corp. .................................. 7,718 151,119
PolyOne Corp.*.................................. 24,161 158,496
Quaker Chemical Corp. .......................... 9,034 206,517
Schulman A, Inc. ............................... 8,780 203,345
Tronox, Inc. ................................... 7,769 107,756
-----------
TOTAL CHEMICALS 1,290,959
-----------
COMMERCIAL BANKS 3.7%
Central Pacific Financial Corp. ................ 1,273 43,740
Community Bank System, Inc. .................... 3,968 81,344
First Bancorp................................... 15,553 195,035
First Commonwealth Financial Corp. ............. 8,178 91,021
First Financial Bancorp......................... 4,811 71,684
Irwin Financial Corp. .......................... 3,154 50,559
Provident Bankshares Corp. ..................... 2,152 68,950
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
South Financial Group, Inc. (The)............... 3,084 $69,791
Sterling Bancorp................................ 4,200 72,702
Susquehanna Bancshares, Inc. ................... 3,576 79,673
Whitney Holding Corp. .......................... 2,096 64,494
-----------
TOTAL COMMERCIAL BANKS 888,993
-----------
COMMERCIAL SERVICES & SUPPLIES 5.1%
ABM Industries, Inc. ........................... 4,907 138,083
Angelica Corp. ................................. 5,660 147,386
Bowne & Co., Inc. .............................. 3,767 62,834
CDI Corp. ...................................... 4,392 130,091
Spherion Corp.*................................. 32,722 279,773
Standard Register Co. (The)..................... 20,201 251,704
United Stationers, Inc.*........................ 2,190 130,349
Volt Information Sciences, Inc.*................ 2,560 65,434
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,205,654
-----------
COMMUNICATIONS EQUIPMENT 0.9%
Inter-Tel, Inc. ................................ 5,053 127,436
Tollgrade Communications, Inc.*................. 6,666 79,659
-----------
TOTAL COMMUNICATIONS EQUIPMENT 207,095
-----------
COMPUTERS & PERIPHERALS 0.3%
Adaptec, Inc.*.................................. 18,310 70,677
-----------
TOTAL COMPUTERS & PERIPHERALS 70,677
-----------
CONSTRUCTION & ENGINEERING 0.5%
Shaw Group, Inc.*............................... 1,436 46,570
URS Corp.*...................................... 1,393 60,874
-----------
TOTAL CONSTRUCTION & ENGINEERING 107,444
-----------
CONTAINERS & PACKAGING 2.4%
Caraustar Industries, Inc.*..................... 15,955 113,600
Chesapeake Corp. ............................... 20,606 304,145
Rock-Tenn Co. .................................. 4,221 161,495
-----------
TOTAL CONTAINERS & PACKAGING 579,240
-----------
DISTRIBUTORS 1.0%
Audiovox Corp. -- Class A*...................... 7,154 102,946
Building Materials Holding Corp. ............... 10,003 145,244
-----------
TOTAL DISTRIBUTORS 248,190
-----------
ELECTRIC UTILITIES 3.5%
Allete, Inc. ................................... 1,912 92,560
Central Vermont Public Service Corp. ........... 10,145 326,669
Cleco Corp. .................................... 6,497 182,306
UIL Holdings Corp. ............................. 3,095 105,694
Unisource Energy Corp. ......................... 3,486 133,897
-----------
TOTAL ELECTRIC UTILITIES 841,126
-----------
ELECTRICAL EQUIPMENT 1.7%
AO Smith Corp. ................................. 3,552 135,331
C&D Technologies, Inc.*......................... 53,975 271,494
-----------
TOTAL ELECTRICAL EQUIPMENT 406,825
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 44
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
ELECTRONIC EQUIPMENT & INSTRUMENTS 4.7%
Agilysys, Inc. ................................. 12,361 $259,952
Anixter International, Inc.*.................... 2,597 185,945
Bell Microproducts, Inc.*....................... 25,310 172,108
Brightpoint, Inc.*.............................. 8,553 113,755
CTS Corp. ...................................... 3,534 46,225
Insight Enterprises, Inc.*...................... 6,915 137,055
Methode Electronics, Inc. ...................... 8,670 130,744
Park Electrochemical Corp. ..................... 2,802 77,195
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,122,979
-----------
FOOD & STAPLES RETAILING 4.6%
Casey's General Stores, Inc. ................... 3,298 82,945
Longs Drug Stores Corp. ........................ 3,787 207,300
Nash Finch Co. ................................. 12,023 468,536
Performance Food Group Co.*..................... 6,998 218,688
Spartan Stores, Inc. ........................... 4,448 114,580
-----------
TOTAL FOOD & STAPLES RETAILING 1,092,049
-----------
FOOD PRODUCTS 0.5%
Lance, Inc. .................................... 5,234 115,828
-----------
TOTAL FOOD PRODUCTS 115,828
-----------
GAS UTILITIES 4.7%
Atmos Energy Corp. ............................. 6,443 204,372
Cascade Natural Gas Corp. ...................... 4,767 123,942
Laclede Group, Inc. (The)....................... 5,011 157,296
New Jersey Resources Corp. ..................... 2,016 108,259
Northwest Natural Gas Co. ...................... 2,420 122,960
Piedmont Natural Gas Co. ....................... 3,393 89,541
South Jersey Industries, Inc. .................. 2,143 84,156
Southwest Gas Corp. ............................ 3,018 114,352
UGI Corp. ...................................... 3,842 108,959
-----------
TOTAL GAS UTILITIES 1,113,837
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 2.0%
Datascope Corp. ................................ 3,757 139,197
Invacare Corp. ................................. 5,373 100,153
Theragenics Corp.*.............................. 40,169 241,817
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 481,167
-----------
HEALTH CARE PROVIDERS & SERVICES 2.5%
Genesis HealthCare Corp.*....................... 2,599 166,336
Gentiva Health Services, Inc.*.................. 3,590 67,205
Owens & Minor, Inc. ............................ 5,208 184,103
RehabCare Group, Inc.*.......................... 10,152 166,289
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 583,933
-----------
HOTELS, RESTAURANTS & LEISURE 1.3%
Landry's Restaurants, Inc. ..................... 4,397 130,591
Marcus Corp. ................................... 3,172 68,928
O'Charleys, Inc.*............................... 5,722 120,791
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 320,310
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
HOUSEHOLD DURABLES 6.5%
Bassett Furniture Industries, Inc. ............. 13,754 $194,757
Champion Enterprises, Inc.*..................... 5,585 57,414
Ethan Allen Interiors, Inc. .................... 1,225 43,242
La-Z-Boy, Inc. ................................. 24,581 287,352
Libbey, Inc. ................................... 25,696 479,230
M/I Homes, Inc. ................................ 5,636 167,558
National Presto Industries, Inc. ............... 1,424 84,144
Skyline Corp. .................................. 1,807 59,360
Standard-Pacific Corp. ......................... 8,141 169,740
-----------
TOTAL HOUSEHOLD DURABLES 1,542,797
-----------
HOUSEHOLD PRODUCTS 0.3%
Spectrum Brands, Inc.*.......................... 8,684 60,441
-----------
TOTAL HOUSEHOLD PRODUCTS 60,441
-----------
INDUSTRIAL CONGLOMERATES 0.9%
Standex International Corp. .................... 4,700 128,592
Tredegar Corp. ................................. 3,493 81,631
-----------
TOTAL INDUSTRIAL CONGLOMERATES 210,223
-----------
INSURANCE 3.7%
LandAmerica Financial Group, Inc. .............. 4,536 364,468
Presidential Life Corp. ........................ 4,663 88,644
Safety Insurance Group, Inc. ................... 1,025 41,061
SCPIE Holdings, Inc.*........................... 1,736 37,897
Selective Insurance Group....................... 2,779 72,476
Stewart Information Services Corp. ............. 6,830 274,703
-----------
TOTAL INSURANCE 879,249
-----------
INTERNET SOFTWARE & SERVICES 1.6%
MIVA, Inc.*..................................... 59,396 255,403
United Online, Inc. ............................ 9,410 135,786
-----------
TOTAL INTERNET SOFTWARE & SERVICES 391,189
-----------
IT SERVICES 1.1%
Ciber, Inc.*.................................... 17,215 140,302
Startek, Inc. .................................. 12,262 117,838
-----------
TOTAL IT SERVICES 258,140
-----------
LEISURE EQUIPMENT & PRODUCTS 1.4%
Arctic Cat, Inc. ............................... 8,059 143,450
Jakks Pacific, Inc.*............................ 3,081 74,037
K2, Inc.*....................................... 8,169 123,270
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 340,757
-----------
MACHINERY 3.1%
Albany International Corp. -- Class A........... 2,042 78,209
Barnes Group, Inc. ............................. 2,853 69,328
Briggs & Stratton Corp. ........................ 7,069 209,737
Lydall, Inc.*................................... 12,433 180,776
Mueller Industries, Inc. ....................... 2,146 70,389
Wabash National Corp. .......................... 7,760 120,745
-----------
TOTAL MACHINERY 729,184
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 45
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MEDIA 0.4%
Radio One, Inc. -- Class D*..................... 12,616 $89,069
-----------
TOTAL MEDIA 89,069
-----------
METALS & MINING 5.3%
AM Castle & Co. ................................ 1,991 67,495
Gibraltar Industries, Inc. ..................... 5,522 123,141
Quanex Corp. ................................... 2,157 92,816
Ryerson, Inc. .................................. 11,389 468,543
Steel Technologies, Inc. ....................... 17,034 509,998
-----------
TOTAL METALS & MINING 1,261,993
-----------
MULTI-UTILITIES 1.2%
Avista Corp. ................................... 5,735 135,288
CH Energy Group, Inc. .......................... 3,165 151,857
-----------
TOTAL MULTI-UTILITIES 287,145
-----------
MULTILINE RETAIL 0.9%
Fred's, Inc. -- Class A......................... 15,075 217,683
-----------
TOTAL MULTILINE RETAIL 217,683
-----------
PAPER & FOREST PRODUCTS 3.0%
Buckeye Technologies, Inc.*..................... 5,704 72,270
Neenah Paper, Inc. ............................. 1,963 74,986
Pope & Talbot, Inc.*............................ 43,372 322,254
Schweitzer-Mauduit International, Inc. ......... 6,231 171,041
Wausau Paper Corp. ............................. 6,067 81,662
-----------
TOTAL PAPER & FOREST PRODUCTS 722,213
-----------
PHARMACEUTICALS 0.4%
Alpharma, Inc. -- Class A....................... 3,750 91,125
-----------
TOTAL PHARMACEUTICALS 91,125
-----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 4.4%
Colonial Properties Trust....................... 2,380 118,072
Entertainment Properties Trust.................. 1,168 70,570
Inland Real Estate Corp. ....................... 3,846 69,959
Kite Realty Group Trust......................... 3,097 61,940
Lexington Corporate Properties Trust............ 5,411 113,036
LTC Properties, Inc. ........................... 4,172 104,592
Medical Properties Trust, Inc. ................. 2,826 40,242
Mid-America Apartment Communities, Inc. ........ 795 42,890
National Retail Properties, Inc. ............... 5,483 131,318
Parkway Properties, Inc. ....................... 2,405 127,465
Senior Housing Properties Trust................. 4,702 107,347
Sovran Self Storage, Inc. ...................... 1,250 69,075
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,056,506
-----------
ROAD & RAIL 0.6%
Arkansas Best Corp. ............................ 3,477 136,994
-----------
TOTAL ROAD & RAIL 136,994
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.3%
Photronics, Inc.*............................... 4,008 $60,320
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 60,320
-----------
SPECIALTY RETAIL 5.2%
Cost Plus, Inc.*................................ 20,200 196,950
Group 1 Automotive, Inc. ....................... 2,881 118,121
Haverty Furniture Cos., Inc. ................... 14,162 180,707
Jo-Ann Stores, Inc.*............................ 6,578 197,011
PEP Boys-Manny Moe & Jack....................... 12,772 238,198
Sonic Automotive, Inc. -- Class A............... 7,456 213,167
Stein Mart, Inc. ............................... 6,205 101,142
-----------
TOTAL SPECIALTY RETAIL 1,245,296
-----------
TEXTILES, APPAREL & LUXURY GOODS 1.3%
Ashworth, Inc.*................................. 22,894 189,791
Kellwood Co. ................................... 3,929 110,719
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 300,510
-----------
THRIFTS & MORTGAGE FINANCE 2.7%
Bank Mutual Corp. .............................. 4,137 48,775
Brookline Bancorp, Inc. ........................ 8,778 104,634
Dime Community Bancshares....................... 7,892 105,042
Flagstar Bancorp, Inc. ......................... 16,728 197,390
Fremont General Corp. .......................... 10,283 77,637
MAF Bancorp, Inc. .............................. 1,646 66,087
TrustCo Bank Corp. NY........................... 5,492 50,362
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 649,927
-----------
TOBACCO 0.6%
Alliance One International, Inc.*............... 13,775 135,133
-----------
TOTAL TOBACCO 135,133
-----------
TRADING COMPANIES & DISTRIBUTORS 0.6%
Kaman Corp. .................................... 5,334 132,283
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 132,283
-----------
TOTAL COMMON STOCKS
(Cost $22,733,245) 23,687,603
-----------
SHORT TERM INVESTMENTS 0.4%
SSgA Prime Money Market Fund.................... 104,603 104,603
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $104,603) 104,603
-----------
TOTAL INVESTMENTS 99.9%
(Cost $22,837,848) 23,792,206
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 17,956
-----------
NET ASSETS--100.0% $23,810,162
- -------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 46
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.9%
AEROSPACE & DEFENSE 2.3%
Armor Holdings, Inc.*........................... 1,069 $76,434
Ceradyne, Inc.*................................. 1,558 91,688
Curtiss-Wright Corp. ........................... 1,824 78,596
-----------
TOTAL AEROSPACE & DEFENSE 246,718
-----------
AIR FREIGHT & LOGISTICS 0.5%
Forward Air Corp. .............................. 1,596 48,694
-----------
TOTAL AIR FREIGHT & LOGISTICS 48,694
-----------
AUTO COMPONENTS 0.6%
Drew Industries, Inc.*.......................... 2,117 60,906
-----------
TOTAL AUTO COMPONENTS 60,906
-----------
AUTOMOBILES 0.7%
Winnebago Industries............................ 2,266 72,648
-----------
TOTAL AUTOMOBILES 72,648
-----------
BIOTECHNOLOGY 0.4%
Digene Corp.*................................... 864 39,614
-----------
TOTAL BIOTECHNOLOGY 39,614
-----------
BUILDING PRODUCTS 0.6%
Simpson Manufacturing Co., Inc. ................ 1,909 61,413
-----------
TOTAL BUILDING PRODUCTS 61,413
-----------
CAPITAL MARKETS 0.3%
Investment Technology Group, Inc.*.............. 886 33,526
-----------
TOTAL CAPITAL MARKETS 33,526
-----------
COMMERCIAL BANKS 2.7%
Cascade Bancorp................................. 1,616 34,647
East West Bancorp, Inc. ........................ 1,065 42,451
Nara Bancorp, Inc. ............................. 3,109 51,330
PrivateBancorp, Inc. ........................... 1,331 43,697
UCBH Holdings, Inc. ............................ 2,967 53,287
Wilshire Bancorp, Inc. ......................... 4,346 59,801
-----------
TOTAL COMMERCIAL BANKS 285,213
-----------
COMMERCIAL SERVICES & SUPPLIES 1.0%
Mobile Mini, Inc.*.............................. 1,378 41,299
Waste Connections, Inc.*........................ 2,152 67,078
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 108,377
-----------
COMMUNICATIONS EQUIPMENT 1.6%
Comtech Telecommunications Corp.*............... 1,584 59,954
NETGEAR, Inc.*.................................. 3,323 111,686
-----------
TOTAL COMMUNICATIONS EQUIPMENT 171,640
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMPUTERS & PERIPHERALS 2.3%
Komag, Inc.*.................................... 2,950 $81,155
Neoware, Inc.*.................................. 8,450 100,048
Synaptics, Inc.*................................ 1,988 59,560
-----------
TOTAL COMPUTERS & PERIPHERALS 240,763
-----------
CONSTRUCTION MATERIALS 1.0%
Headwaters, Inc.*............................... 4,690 101,632
-----------
TOTAL CONSTRUCTION MATERIALS 101,632
-----------
CONSUMER FINANCE 1.1%
Rewards Network, Inc.*.......................... 15,395 60,964
World Acceptance Corp.*......................... 1,410 60,532
-----------
TOTAL CONSUMER FINANCE 121,496
-----------
DISTRIBUTORS 0.6%
LKQ Corp.*...................................... 2,618 59,114
-----------
TOTAL DISTRIBUTORS 59,114
-----------
DIVERSIFIED CONSUMER SERVICES 4.0%
Bright Horizons Family Solutions, Inc.*......... 1,424 54,995
Coinstar, Inc.*................................. 3,595 111,769
Pre-Paid Legal Services, Inc.*.................. 2,065 117,808
Vertrue, Inc.*.................................. 2,966 140,351
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 424,923
-----------
DIVERSIFIED FINANCIAL SERVICES 1.1%
Portfolio Recovery Associates, Inc.*............ 2,159 120,148
-----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 120,148
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.5%
General Communication, Inc. -- Class A*......... 4,032 57,375
-----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 57,375
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 3.9%
Daktronics, Inc. ............................... 1,453 33,099
Flir Systems, Inc.*............................. 3,460 140,095
Itron, Inc.*.................................... 1,440 96,970
Scansource, Inc.*............................... 2,329 66,889
Trimble Navigation Ltd.*........................ 2,529 72,532
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 409,585
-----------
ENERGY EQUIPMENT & SERVICES 4.4%
CARBO Ceramics, Inc. ........................... 1,560 67,782
Hornbeck Offshore Services, Inc.*............... 2,384 75,406
Hydril*......................................... 1,133 109,697
Oceaneering International, Inc.*................ 989 47,017
Unit Corp.*..................................... 1,476 84,353
W-H Energy Services, Inc.*...................... 1,480 80,083
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 464,338
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 47
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FOOD & STAPLES RETAILING 0.4%
United Natural Foods, Inc.*..................... 1,502 $46,847
-----------
TOTAL FOOD & STAPLES RETAILING 46,847
-----------
FOOD PRODUCTS 0.9%
Sanderson Farms, Inc. .......................... 2,497 98,706
-----------
TOTAL FOOD PRODUCTS 98,706
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 12.4%
American Medical Systems Holdings, Inc.*........ 3,156 55,956
Arthrocare Corp.*............................... 1,144 47,201
Biolase Technology, Inc.*....................... 6,751 43,882
Biosite, Inc.*.................................. 2,085 192,863
Cooper Cos., Inc. (The)......................... 1,397 71,387
Greatbatch, Inc.*............................... 2,229 64,708
Hologic, Inc.*.................................. 1,240 71,362
ICU Medical, Inc.*.............................. 983 41,040
Idexx Laboratories, Inc.*....................... 626 56,446
Immucor, Inc.*.................................. 2,558 83,468
Integra LifeSciences Holdings Corp.*............ 2,534 115,474
Kensey Nash Corp.*.............................. 2,037 52,392
Mentor Corp. ................................... 1,307 50,855
Merit Medical Systems, Inc.*.................... 3,633 41,888
PolyMedica Corp. ............................... 1,619 65,472
Possis Medical, Inc.*........................... 9,008 116,564
Respironics, Inc.*.............................. 1,419 57,838
SurModics, Inc.*................................ 2,120 86,136
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,314,932
-----------
HEALTH CARE PROVIDERS & SERVICES 6.6%
Amedisys, Inc.*................................. 1,900 59,565
AMN Healthcare Services, Inc.*.................. 4,085 99,470
Amsurg Corp.*................................... 2,767 63,503
HealthExtras, Inc.*............................. 3,058 94,645
Healthways, Inc.*............................... 1,992 84,501
Odyssey HealthCare, Inc.*....................... 4,529 60,417
Pediatrix Medical Group, Inc.*.................. 1,077 61,443
Sierra Health Services, Inc.*................... 2,192 90,792
Sunrise Senior Living, Inc.*.................... 2,329 89,177
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 703,513
-----------
HOTELS, RESTAURANTS & LEISURE 6.3%
CEC Entertainment, Inc.*........................ 1,526 63,588
Jack in the Box, Inc.*.......................... 783 52,164
Monarch Casino & Resort, Inc.*.................. 2,629 70,116
Multimedia Games, Inc.*......................... 9,585 107,352
P.F. Chang's China Bistro, Inc.*................ 2,273 86,942
Panera Bread Co. -- Class A*.................... 1,656 92,223
Papa John's International, Inc.*................ 2,202 67,623
Shuffle Master, Inc.*........................... 3,694 62,909
Sonic Corp.*.................................... 3,012 67,589
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 670,506
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
HOUSEHOLD DURABLES 0.7%
Meritage Homes Corp.*........................... 2,092 $72,823
-----------
TOTAL HOUSEHOLD DURABLES 72,823
-----------
INSURANCE 2.1%
Hilb Rogal & Hobbs Co. ......................... 1,426 61,960
Infinity Property & Casualty Corp. ............. 2,318 107,810
Philadelphia Consolidated Holding Co.*.......... 1,224 53,121
-----------
TOTAL INSURANCE 222,891
-----------
INTERNET & CATALOG RETAIL 0.9%
PetMed Express, Inc.*........................... 8,416 92,828
-----------
TOTAL INTERNET & CATALOG RETAIL 92,828
-----------
INTERNET SOFTWARE & SERVICES 4.4%
Bankrate, Inc.*................................. 2,922 117,961
j2 Global Communications, Inc.*................. 4,035 116,047
WebEx Communications, Inc.*..................... 2,164 122,785
Websense, Inc.*................................. 4,580 113,172
-----------
TOTAL INTERNET SOFTWARE & SERVICES 469,965
-----------
IT SERVICES 2.2%
CACI International, Inc. -- Class A*............ 1,124 51,400
eFunds Corp.*................................... 1,673 46,677
Mantech International Corp. -- Class A*......... 1,588 48,720
Talx Corp. ..................................... 2,597 89,571
-----------
TOTAL IT SERVICES 236,368
-----------
LEISURE EQUIPMENT & PRODUCTS 1.7%
Nautilus, Inc. ................................. 6,079 83,951
Pool Corp. ..................................... 2,298 92,219
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 176,170
-----------
LIFE SCIENCES TOOLS & SERVICES 1.5%
Dionex Corp.*................................... 1,075 74,175
PharmaNet Development Group, Inc.*.............. 3,095 84,463
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 158,638
-----------
MACHINERY 1.5%
ASV, Inc.*...................................... 3,815 57,912
Manitowoc Co., Inc. ............................ 572 39,028
Toro Co. ....................................... 1,161 58,340
-----------
TOTAL MACHINERY 155,280
-----------
MARINE 0.3%
Kirby Corp.*.................................... 974 36,817
-----------
TOTAL MARINE 36,817
-----------
METALS & MINING 1.7%
Chaparral Steel Co. ............................ 1,370 96,585
Cleveland-Cliffs, Inc. ......................... 1,148 79,545
-----------
TOTAL METALS & MINING 176,130
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 48
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
OIL, GAS & CONSUMABLE FUELS 4.7%
Cabot Oil & Gas Corp. .......................... 1,528 $55,650
Helix Energy Solutions Group, Inc.*............. 1,778 68,026
Penn Virginia Corp. ............................ 813 65,081
Petroleum Development Corp.*.................... 1,718 89,336
St Mary Land & Exploration Co. ................. 2,496 91,403
Stone Energy Corp.*............................. 2,437 72,208
Swift Energy Co.*............................... 1,347 54,756
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 496,460
-----------
PERSONAL PRODUCTS 1.9%
NBTY, Inc.*..................................... 1,886 93,187
Playtex Products, Inc.*......................... 1,968 29,953
USANA Health Sciences, Inc.*.................... 1,849 73,664
-----------
TOTAL PERSONAL PRODUCTS 196,804
-----------
PHARMACEUTICALS 1.5%
Bradley Pharmaceuticals, Inc.*.................. 4,054 79,580
Noven Pharmaceuticals, Inc.*.................... 1,139 26,664
Sciele Pharma, Inc.*............................ 2,127 52,579
-----------
TOTAL PHARMACEUTICALS 158,823
-----------
ROAD & RAIL 2.0%
Heartland Express, Inc. ........................ 3,545 61,080
Knight Transportation, Inc. .................... 3,464 67,444
Landstar System, Inc. .......................... 1,708 82,514
-----------
TOTAL ROAD & RAIL 211,038
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.9%
Cabot Microelectronics Corp.*................... 1,550 49,817
Diodes, Inc.*................................... 1,102 40,686
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 90,503
-----------
SOFTWARE 5.9%
Ansys, Inc.*.................................... 1,432 73,318
Blackbaud, Inc. ................................ 3,123 68,956
EPIQ Systems, Inc.*............................. 4,278 101,089
Factset Research Systems, Inc. ................. 1,460 89,805
Kronos, Inc.*................................... 1,443 78,745
Manhattan Associates, Inc.*..................... 1,533 44,334
MICROS Systems, Inc.*........................... 699 38,305
Quality Systems, Inc. .......................... 1,628 65,885
Take-Two Interactive Software, Inc.*............ 3,389 64,967
-----------
TOTAL SOFTWARE 625,404
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
SPECIALTY RETAIL 6.5%
Childrens Place Retail Stores Inc. (The)*....... 729 $38,542
Christopher & Banks Corp. ...................... 4,744 82,119
Dress Barn, Inc.*............................... 1,766 35,161
Guitar Center, Inc.*............................ 1,220 56,486
Gymboree Corp.*................................. 1,155 44,098
Hibbett Sports, Inc.*........................... 2,065 60,195
HOT Topic, Inc.*................................ 6,534 73,769
Jos. A. Bank Clothiers, Inc.*................... 2,054 79,367
Stage Stores, Inc. ............................. 4,261 93,955
Tractor Supply Co.*............................. 1,680 86,923
Tween Brands, Inc.*............................. 853 33,403
-----------
TOTAL SPECIALTY RETAIL 684,018
-----------
TEXTILES, APPAREL & LUXURY GOODS 2.8%
Crocs, Inc.*.................................... 615 34,366
Deckers Outdoor Corp.*.......................... 755 57,176
Fossil, Inc.*................................... 2,768 77,975
K-Swiss, Inc. -- Class A........................ 2,863 82,684
Quiksilver, Inc.*............................... 3,558 47,321
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 299,522
-----------
THRIFTS & MORTGAGE FINANCE 0.5%
Franklin Bank Corp.*............................ 3,290 51,324
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 51,324
-----------
TOTAL COMMON STOCKS
(Cost $9,953,346) 10,574,433
-----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 6,511 6,511
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $6,511) 6,511
-----------
TOTAL INVESTMENTS 100.0%
(Cost $9,959,857) 10,580,944
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,532)
-----------
NET ASSETS--100.0% $10,578,412
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 49
RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.9%
AUTO COMPONENTS 2.4%
Goodyear Tire & Rubber Co.*..................... 21,338 $709,702
Johnson Controls, Inc. ......................... 6,357 650,512
-----------
TOTAL AUTO COMPONENTS 1,360,214
-----------
AUTOMOBILES 3.4%
Ford Motor Co. ................................. 79,694 640,740
General Motors Corp. ........................... 20,560 642,089
Harley-Davidson, Inc. .......................... 9,914 627,754
-----------
TOTAL AUTOMOBILES 1,910,583
-----------
DISTRIBUTORS 1.1%
Genuine Parts Co. .............................. 12,439 614,611
-----------
TOTAL DISTRIBUTORS 614,611
-----------
DIVERSIFIED CONSUMER SERVICES 2.3%
Apollo Group, Inc. -- Class A*.................. 13,356 631,739
H&R Block, Inc. ................................ 28,900 653,429
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 1,285,168
-----------
HOTELS, RESTAURANTS & LEISURE 13.5%
Carnival Corp. ................................. 13,175 644,126
Darden Restaurants, Inc. ....................... 15,245 632,362
Harrah's Entertainment, Inc. ................... 7,219 615,781
Hilton Hotels Corp. ............................ 18,168 617,712
International Game Technology, Inc. ............ 15,441 588,920
Marriott International, Inc. -- Class A......... 12,694 573,896
McDonald's Corp. ............................... 13,873 669,788
Starbucks Corp.*................................ 19,553 606,534
Starwood Hotels & Resorts Worldwide, Inc. ...... 9,545 639,706
Wendy's International, Inc. .................... 19,470 734,019
Wyndham Worldwide Corp.*........................ 18,313 633,630
Yum! Brands, Inc. .............................. 10,388 642,601
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 7,599,075
-----------
HOUSEHOLD DURABLES 14.7%
Black & Decker Corp. ........................... 7,302 662,437
Centex Corp. ................................... 13,792 617,468
D.R. Horton, Inc. .............................. 26,217 581,493
Fortune Brands, Inc. ........................... 7,708 617,411
Harman International Industries, Inc. .......... 6,144 748,892
KB Home......................................... 13,116 578,547
Leggett & Platt, Inc. .......................... 26,140 614,813
Lennar Corp. -- Class A......................... 13,247 565,779
Newell Rubbermaid, Inc.*........................ 19,887 609,934
Pulte Homes, Inc. .............................. 22,759 612,217
Snap-On, Inc. .................................. 12,600 686,700
Stanley Works................................... 11,164 650,638
Whirlpool Corp. ................................ 7,134 756,418
-----------
TOTAL HOUSEHOLD DURABLES 8,302,747
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
INTERNET & CATALOG RETAIL 2.9%
Amazon.Com, Inc.*............................... 15,976 $979,808
IAC/InterActiveCorp*............................ 16,539 630,467
-----------
TOTAL INTERNET & CATALOG RETAIL 1,610,275
-----------
LEISURE EQUIPMENT & PRODUCTS 4.5%
Brunswick Corp. ................................ 19,081 625,094
Eastman Kodak Co. .............................. 26,200 652,642
Hasbro, Inc. ................................... 20,663 653,157
Mattel, Inc. ................................... 21,754 615,638
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 2,546,531
-----------
MEDIA 18.7%
CBS Corp. -- Class B............................ 20,024 636,162
Clear Channel Communications, Inc. ............. 17,158 607,908
Comcast Corp. -- Class A*....................... 23,676 631,202
DIRECTV Group, Inc.*............................ 27,197 648,376
Dow Jones & Co., Inc. .......................... 17,632 640,571
E.W. Scripps Co. -- Class A..................... 13,883 601,134
Gannett Co., Inc. .............................. 10,625 606,263
Interpublic Group of Cos., Inc.*................ 47,985 608,450
McGraw-Hill Cos., Inc. ......................... 9,607 629,547
Meredith Corp. ................................. 10,561 611,693
New York Times Co. -- Class A................... 24,933 583,432
News Corp. -- Class A........................... 26,935 603,075
Omnicom Group, Inc. ............................ 5,803 607,632
Time Warner, Inc. .............................. 30,971 638,932
Tribune Co. .................................... 20,800 682,240
Viacom, Inc. -- Class B*........................ 15,033 620,111
Walt Disney Co. ................................ 17,942 627,611
-----------
TOTAL MEDIA 10,584,339
-----------
MULTILINE RETAIL 11.1%
Big Lots, Inc.*................................. 19,617 631,667
Dillard's, Inc. -- Class A...................... 18,756 649,520
Dollar General Corp. ........................... 28,655 611,784
Family Dollar Stores, Inc. ..................... 20,844 663,673
Federated Department Stores, Inc. .............. 13,626 598,454
J.C. Penney Holding Co., Inc. .................. 7,597 600,847
Kohl's Corp.*................................... 8,352 618,382
Nordstrom, Inc. ................................ 11,849 650,747
Sears Holdings Corp.*........................... 3,460 660,549
Target Corp. ................................... 10,083 598,628
-----------
TOTAL MULTILINE RETAIL 6,284,251
-----------
SPECIALTY RETAIL 18.6%
Abercrombie & Fitch Co. -- Class A.............. 7,939 648,299
AutoNation, Inc.*............................... 28,659 585,790
AutoZone, Inc.*................................. 4,838 643,648
Bed Bath & Beyond, Inc.*........................ 15,452 629,515
Best Buy Co., Inc. ............................. 12,538 584,898
Circuit City Stores, Inc. ...................... 33,909 591,712
Gap, Inc. ...................................... 34,476 618,844
Home Depot, Inc. ............................... 16,058 608,116
Limited Brands, Inc. ........................... 23,490 647,619
Lowe's Cos., Inc. .............................. 19,456 594,575
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 50
RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Office Depot, Inc.*............................. 17,453 $586,770
OfficeMax, Inc. ................................ 12,223 601,616
RadioShack Corp. ............................... 23,200 674,424
Sherwin-Williams Co. ........................... 9,169 584,707
Staples, Inc. .................................. 23,729 588,479
Tiffany & Co. .................................. 14,075 671,237
TJX Cos., Inc. ................................. 23,043 642,669
-----------
TOTAL SPECIALTY RETAIL 10,502,918
-----------
TEXTILES, APPAREL & LUXURY GOODS 6.7%
Coach, Inc.*.................................... 12,362 603,637
Jones Apparel Group, Inc. ...................... 18,887 630,637
Liz Claiborne, Inc. ............................ 14,099 630,507
Nike, Inc. -- Class B........................... 11,278 607,433
Polo Ralph Lauren Corp. ........................ 7,193 662,547
V.F. Corp. ..................................... 7,458 654,887
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 3,789,648
-----------
TOTAL COMMON STOCKS
(Cost $54,859,226) 56,390,360
-----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 71,510 $71,510
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $71,510) 71,510
-----------
TOTAL INVESTMENTS 100.0%
(Cost $54,930,736) 56,461,870
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,326)
-----------
NET ASSETS--100.0% $56,459,544
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 51
RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.9%
BEVERAGES 20.7%
Anheuser-Busch Cos., Inc. ...................... 3,853 $189,529
Brown-Forman Corp. -- Class B................... 2,959 189,169
Coca-Cola Co. (The)............................. 4,052 211,474
Coca-Cola Enterprises, Inc. .................... 9,454 207,421
Constellation Brands, Inc. -- Class A*.......... 9,925 222,419
Molson Coors Brewing Co. -- Class B............. 2,152 202,890
Pepsi Bottling Group, Inc. ..................... 6,233 204,505
PepsiCo, Inc. .................................. 3,055 201,905
----------
TOTAL BEVERAGES 1,629,312
----------
FOOD & STAPLES RETAILING 23.2%
Costco Wholesale Corp. ......................... 3,610 193,388
CVS Corp. ...................................... 5,807 210,446
Kroger Co. ..................................... 7,191 212,206
Safeway, Inc. .................................. 5,543 201,211
SUPERVALU, Inc. ................................ 5,087 233,492
Sysco Corp. .................................... 5,894 192,970
Wal-Mart Stores, Inc. .......................... 4,139 198,341
Walgreen Co. ................................... 4,136 181,570
Whole Foods Market, Inc. ....................... 4,325 202,367
----------
TOTAL FOOD & STAPLES RETAILING 1,825,991
----------
FOOD PRODUCTS 32.8%
Archer-Daniels-Midland Co. ..................... 5,708 220,900
Campbell Soup Co. .............................. 4,913 192,098
ConAgra Foods, Inc. ............................ 7,854 193,051
Dean Foods Co. ................................. 4,142 150,893
General Mills, Inc. ............................ 3,409 204,199
H.J. Heinz Co. ................................. 4,154 195,695
Hershey Co. (The)............................... 3,577 196,592
Kellogg Co. .................................... 3,784 200,212
Kraft Foods, Inc. -- Class A.................... 6,068 203,096
McCormick & Co, Inc. ........................... 5,081 188,607
Sara Lee Corp. ................................. 11,515 188,961
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
Tyson Foods, Inc. -- Class A.................... 10,492 $219,912
Wm. Wrigley Jr. Co. ............................ 3,724 219,269
----------
TOTAL FOOD PRODUCTS 2,573,485
----------
HOUSEHOLD PRODUCTS 10.3%
Clorox Co. ..................................... 3,073 206,137
Colgate-Palmolive Co. .......................... 2,938 199,020
Kimberly-Clark Corp. ........................... 2,866 203,973
Procter & Gamble Co. ........................... 3,103 199,554
----------
TOTAL HOUSEHOLD PRODUCTS 808,684
----------
PERSONAL PRODUCTS 5.2%
Avon Products, Inc. ............................ 5,093 202,702
Estee Lauder Cos., Inc -- Class A............... 3,998 205,577
----------
TOTAL PERSONAL PRODUCTS 408,279
----------
TOBACCO 7.7%
Altria Group, Inc. ............................. 3,010 207,449
Reynolds American, Inc. ........................ 3,196 205,375
UST, Inc. ...................................... 3,400 192,713
----------
TOTAL TOBACCO 605,537
----------
TOTAL COMMON STOCKS
(Cost $7,331,767) 7,851,288
----------
SHORT TERM INVESTMENTS 0.0%(A)
SSgA Prime Money Market Fund.................... 2,063 2,063
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $2,063) 2,063
----------
TOTAL INVESTMENTS 99.9%
(Cost $7,333,830) 7,853,351
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 9,490
----------
NET ASSETS--100.0% $7,862,841
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 52
RYDEX S&P EQUAL WEIGHT ENERGY ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.9%
ENERGY EQUIPMENT & SERVICES 36.9%
Baker Hughes, Inc. ............................. 3,565 $286,590
BJ Services Co. ................................ 8,356 239,483
ENSCO International, Inc. ...................... 4,437 250,158
Halliburton Co. ................................ 7,088 225,186
Nabors Industries Ltd.*......................... 7,696 247,196
National-Oilwell Varco, Inc.*................... 3,104 263,374
Noble Corp. .................................... 3,047 256,588
Rowan Cos., Inc. ............................... 7,377 270,293
Schlumberger Ltd. .............................. 3,517 259,660
Smith International, Inc. ...................... 5,143 269,699
Transocean, Inc.*............................... 2,969 255,928
Weatherford International Ltd.*................. 5,112 268,329
----------
TOTAL ENERGY EQUIPMENT & SERVICES 3,092,484
----------
OIL, GAS & CONSUMABLE FUELS 63.0%
Anadarko Petroleum Corp. ....................... 5,691 265,542
Apache Corp. ................................... 3,344 242,440
Chesapeake Energy Corp. ........................ 7,625 257,344
Chevron Corp. .................................. 3,290 255,929
ConocoPhillips.................................. 3,435 238,217
CONSOL Energy, Inc. ............................ 6,202 259,678
Devon Energy Corp. ............................. 3,507 255,555
El Paso Corp. .................................. 16,184 242,760
EOG Resources, Inc. ............................ 3,420 251,165
Exxon Mobil Corp. .............................. 3,232 256,556
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
Hess Corp.*..................................... 4,409 $250,211
Kinder Morgan, Inc. ............................ 2,155 229,637
Marathon Oil Corp. ............................. 2,428 246,563
Murphy Oil Corp. ............................... 4,379 242,772
Occidental Petroleum Corp. ..................... 4,971 252,030
Peabody Energy Corp. ........................... 5,868 281,547
Spectra Energy Corp. ........................... 9,493 247,767
Sunoco, Inc. ................................... 3,429 258,992
Valero Energy Corp. ............................ 3,764 264,346
Williams Cos., Inc. ............................ 8,449 249,245
XTO Energy, Inc. ............................... 4,453 241,664
----------
TOTAL OIL, GAS & CONSUMABLE FUELS 5,289,960
----------
TOTAL COMMON STOCKS
(Cost $7,290,590) 8,382,444
----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 10,935 10,935
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $10,935) 10,935
----------
TOTAL INVESTMENTS 100.0%
(Cost $7,301,525) 8,393,379
----------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (598)
----------
NET ASSETS--100.0% $8,392,781
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 53
RYDEX S&P EQUAL WEIGHT FINANCIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.6%
CAPITAL MARKETS 19.5%
Ameriprise Financial, Inc. ..................... 985 $58,578
Bank of New York Co., Inc....................... 1,409 57,036
Bear Stearns Cos., Inc. ........................ 377 58,699
Charles Schwab Corp. ........................... 3,048 58,278
E*Trade Financial Corp.*........................ 2,528 55,818
Federated Investors, Inc. -- Class B............ 1,523 58,118
Franklin Resources, Inc. ....................... 478 62,766
Goldman Sachs Group, Inc. ...................... 276 60,336
Janus Capital Group, Inc. ...................... 2,716 67,954
Legg Mason, Inc. ............................... 580 57,530
Lehman Brothers Holdings, Inc. ................. 767 57,740
Mellon Financial Corp. ......................... 1,323 56,797
Merrill Lynch & Co., Inc. ...................... 685 61,808
Morgan Stanley.................................. 734 61,663
Northern Trust Corp. ........................... 945 59,488
State Street Corp. ............................. 867 59,710
T. Rowe Price Group, Inc. ...................... 1,187 58,970
----------
TOTAL CAPITAL MARKETS 1,011,289
----------
COMMERCIAL BANKS 20.2%
BB&T Corp. ..................................... 1,345 55,979
Comerica, Inc. ................................. 933 57,762
Commerce Bancorp, Inc. ......................... 1,659 55,477
Compass Bancshares, Inc. ....................... 815 55,567
Fifth Third Bancorp............................. 1,390 56,420
First Horizon National Corp. ................... 1,334 52,306
Huntington Bancshares, Inc. .................... 2,469 54,762
KeyCorp......................................... 1,485 52,985
M&T Bank Corp. ................................. 472 52,552
Marshall & Ilsley Corp. ........................ 1,179 56,616
National City Corp. ............................ 1,518 55,483
PNC Financial Services Group, Inc. ............. 781 57,872
Regions Financial Corp. ........................ 1,582 55,512
SunTrust Banks, Inc. ........................... 655 55,295
Synovus Financial Corp. ........................ 1,703 53,747
U.S. Bancorp.................................... 1,553 53,346
Wachovia Corp. ................................. 995 55,262
Wells Fargo & Co. .............................. 1,608 57,711
Zions Bancorp................................... 647 52,925
----------
TOTAL COMMERCIAL BANKS 1,047,579
----------
CONSUMER FINANCE 3.6%
American Express Co. ........................... 989 60,002
Capital One Financial Corp. .................... 730 54,210
SLM Corp. ...................................... 1,312 70,625
----------
TOTAL CONSUMER FINANCE 184,837
----------
DIVERSIFIED FINANCIAL SERVICES 6.7%
Bank of America Corp. .......................... 1,096 55,787
Chicago Mercantile Exchange Holdings, Inc. ..... 103 53,225
CIT Group, Inc. ................................ 1,062 63,348
Citigroup, Inc. ................................ 1,102 59,089
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
JPMorgan Chase & Co. ........................... 1,157 $60,280
Moody's Corp. .................................. 849 56,136
----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 347,865
----------
INSURANCE 27.2%
ACE Ltd. ....................................... 999 59,401
AFLAC, Inc. .................................... 1,198 61,505
Allstate Corp................................... 916 57,085
Ambac Financial Group, Inc. .................... 635 58,293
American International Group, Inc. ............. 819 57,256
Aon Corp. ...................................... 1,451 56,226
Assurant, Inc. ................................. 978 56,264
Chubb Corp. .................................... 1,103 59,374
Cincinnati Financial Corp. ..................... 1,286 58,179
Genworth Financial, Inc. -- Class A............. 1,599 58,348
Hartford Financial Services Group, Inc. ........ 582 58,898
Lincoln National Corp. ......................... 831 59,126
Loews Corp. .................................... 1,254 59,339
Marsh & McLennan Cos., Inc. .................... 1,896 60,217
MBIA, Inc. ..................................... 845 58,778
MetLife, Inc. .................................. 887 58,276
Principal Financial Group, Inc. ................ 927 58,855
Progressive Corp. .............................. 2,595 59,867
Prudential Financial, Inc. ..................... 617 58,615
SAFECO Corp. ................................... 824 54,994
Torchmark Corp. ................................ 865 59,080
Travelers Cos., Inc. (The)...................... 1,091 59,023
UnumProvident Corp. ............................ 2,475 61,578
XL Capital Ltd. -- Class A...................... 801 62,462
----------
TOTAL INSURANCE 1,411,039
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 13.7%
Apartment Investment & Management Co. -- Class
A............................................. 991 54,802
Archstone-Smith Trust........................... 1,016 52,944
AvalonBay Communities, Inc. .................... 424 51,838
Boston Properties, Inc. ........................ 468 55,018
Developers Diversified Realty Corp. ............ 870 56,637
Equity Residential Properties Trust............. 1,151 53,441
Host Hotels & Resorts, Inc. .................... 2,068 53,024
Kimco Realty Corp. ............................. 1,129 54,271
Plum Creek Timber Co., Inc. .................... 1,440 57,168
ProLogis........................................ 835 54,108
Public Storage, Inc. ........................... 570 53,192
Simon Property Group, Inc. ..................... 498 57,410
Vornado Realty Trust............................ 452 53,621
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 707,474
----------
REAL ESTATE MANAGEMENT & DEVELOPMENT 1.0%
CB Richard Ellis Group, Inc. -- Class A*........ 1,608 54,431
----------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 54,431
----------
THRIFTS & MORTGAGE FINANCE 7.7%
Countrywide Financial Corp. .................... 1,552 57,548
Federal Home Loan Mortgage Corp. ............... 913 59,144
Federal National Mortgage Association........... 1,011 59,568
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 54
RYDEX S&P EQUAL WEIGHT FINANCIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Hudson City Bancorp, Inc. ...................... 4,066 $54,159
MGIC Investment Corp. .......................... 939 57,852
Sovereign Bancorp, Inc. ........................ 2,145 52,059
Washington Mutual, Inc. ........................ 1,364 57,261
----------
TOTAL THRIFTS & MORTGAGE FINANCE 397,591
----------
TOTAL COMMON STOCKS
(Cost $4,986,986) 5,162,105
----------
SHORT TERM INVESTMENTS 0.3%
SSgA Prime Money Market Fund.................... 16,865 16,865
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $16,865) 16,865
----------
TOTAL INVESTMENTS 99.9%
(Cost $5,003,851) 5,178,970
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 3,201
----------
NET ASSETS--100.0% $5,182,171
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 55
RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.9%
BIOTECHNOLOGY 12.4%
Amgen, Inc.*.................................... 2,427 $155,668
Biogen Idec, Inc.*.............................. 3,302 155,888
Celgene Corp.*.................................. 2,765 169,108
Genzyme Corp.*.................................. 2,427 158,507
Gilead Sciences, Inc.*.......................... 2,067 168,915
MedImmune, Inc.*................................ 4,424 250,752
----------
TOTAL BIOTECHNOLOGY 1,058,838
----------
HEALTH CARE EQUIPMENT & SUPPLIES 21.4%
Bausch & Lomb, Inc. ............................ 2,906 170,960
Baxter International, Inc. ..................... 2,802 158,677
Becton Dickinson & Co. ......................... 1,933 152,108
Biomet, Inc. ................................... 3,406 147,139
Boston Scientific Corp.*........................ 9,698 149,737
C.R. Bard, Inc. ................................ 1,814 150,798
Hospira, Inc.*.................................. 3,680 149,224
Medtronic, Inc. ................................ 2,942 155,720
St Jude Medical, Inc.*.......................... 3,826 163,715
Stryker Corp. .................................. 2,204 143,128
Varian Medical Systems, Inc.*................... 3,040 128,318
Zimmer Holdings, Inc.*.......................... 1,683 152,278
----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,821,802
----------
HEALTH CARE PROVIDERS & SERVICES 29.1%
Aetna, Inc. .................................... 3,329 156,064
AmerisourceBergen Corp. ........................ 2,774 138,672
Cardinal Health, Inc. .......................... 2,031 142,069
Cigna Corp. .................................... 1,009 156,990
Coventry Health Care, Inc.*..................... 2,619 151,457
Express Scripts, Inc.*.......................... 1,744 166,639
Humana, Inc.*................................... 2,470 156,203
Laboratory Corp. of America Holdings*........... 2,031 160,327
Manor Care, Inc. ............................... 2,674 173,516
McKesson Corp. ................................. 2,604 153,193
Medco Health Solutions, Inc.*................... 2,113 164,856
Patterson Cos., Inc.*........................... 4,335 156,320
Quest Diagnostics, Inc. ........................ 2,936 143,541
Tenet Healthcare Corp.*......................... 22,653 168,085
UnitedHealth Group, Inc. ....................... 2,707 143,634
WellPoint, Inc.*................................ 1,826 144,199
----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,475,765
----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
HEALTH CARE TECHNOLOGY 1.8%
IMS Health, Inc. ............................... 5,043 $147,911
----------
TOTAL HEALTH CARE TECHNOLOGY 147,911
----------
LIFE SCIENCES TOOLS & SERVICES 9.0%
Applera Corp. -- Applied Biosystems Group....... 4,869 152,108
Millipore Corp.*................................ 2,015 148,767
PerkinElmer, Inc. .............................. 6,186 149,701
Thermo Electron Corp.*.......................... 3,168 164,926
Waters Corp.*................................... 2,564 152,379
----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 767,881
----------
PHARMACEUTICALS 26.2%
Abbott Laboratories............................. 2,720 154,006
Allergan, Inc. ................................. 1,299 157,439
Barr Pharmaceuticals, Inc.*..................... 2,979 144,064
Bristol-Myers Squibb Co. ....................... 5,363 154,776
Eli Lilly & Co. ................................ 2,756 162,962
Forest Laboratories, Inc.*...................... 2,845 151,382
Johnson & Johnson............................... 2,378 152,715
King Pharmaceuticals, Inc.*..................... 7,628 155,993
Merck & Co., Inc. .............................. 3,338 171,707
Mylan Laboratories, Inc. ....................... 7,406 162,414
Pfizer, Inc. ................................... 5,756 152,304
Schering-Plough Corp. .......................... 6,125 194,346
Watson Pharmaceuticals, Inc.*................... 5,637 153,890
Wyeth........................................... 2,979 165,335
----------
TOTAL PHARMACEUTICALS 2,233,333
----------
TOTAL COMMON STOCKS
(Cost $7,551,276) 8,505,529
----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 10,339 10,339
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $10,339) 10,339
----------
TOTAL INVESTMENTS 100.0%
(Cost $7,561,615) 8,515,868
----------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (143)
----------
NET ASSETS--100.0% $8,515,725
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 56
RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.8%
AEROSPACE & DEFENSE 18.9%
Boeing Co. ..................................... 1,662 $154,566
General Dynamics Corp. ......................... 1,929 151,427
Goodrich Corp. ................................. 2,983 169,554
Honeywell International, Inc. .................. 3,190 172,834
L-3 Communications Holdings, Inc. .............. 1,785 160,525
Lockheed Martin Corp. .......................... 1,530 147,094
Northrop Grumman Corp. ......................... 2,064 151,993
Raytheon Co. ................................... 2,821 151,036
Rockwell Collins, Inc. ......................... 2,192 143,949
United Technologies Corp. ...................... 2,318 155,607
----------
TOTAL AEROSPACE & DEFENSE 1,558,585
----------
AIR FREIGHT & LOGISTICS 5.6%
C.H. Robinson Worldwide, Inc. .................. 3,154 168,613
FedEx Corp. .................................... 1,348 142,133
United Parcel Service, Inc. -- Class B.......... 2,162 152,269
----------
TOTAL AIR FREIGHT & LOGISTICS 463,015
----------
AIRLINES 1.7%
Southwest Airlines Co. ......................... 9,979 143,199
----------
TOTAL AIRLINES 143,199
----------
BUILDING PRODUCTS 3.7%
American Standard Cos., Inc. ................... 2,812 154,829
Masco Corp. .................................... 5,439 147,995
----------
TOTAL BUILDING PRODUCTS 302,824
----------
COMMERCIAL SERVICES & SUPPLIES 16.6%
Allied Waste Industries, Inc.*.................. 12,229 163,502
Avery Dennison Corp.*........................... 2,336 145,299
Cintas Corp. ................................... 3,774 141,412
Equifax, Inc. .................................. 4,049 161,150
Monster Worldwide, Inc.*........................ 3,127 131,490
Pitney Bowes, Inc. ............................. 3,312 158,976
R.R. Donnelley & Sons Co. ...................... 4,235 170,247
Robert Half International, Inc. ................ 4,022 133,933
Waste Management, Inc. ......................... 4,466 167,073
----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,373,082
----------
CONSTRUCTION & ENGINEERING 1.9%
Fluor Corp. .................................... 1,698 162,363
----------
TOTAL CONSTRUCTION & ENGINEERING 162,363
----------
ELECTRICAL EQUIPMENT 5.8%
Cooper Industries Ltd., -- Class A.............. 3,259 162,168
Emerson Electric Co. ........................... 3,543 166,485
Rockwell Automation, Inc.*...................... 2,492 148,374
----------
TOTAL ELECTRICAL EQUIPMENT 477,027
----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES 7.9%
3M Co. ......................................... 1,989 $164,629
General Electric Co. ........................... 4,358 160,636
Textron, Inc. .................................. 1,665 169,281
Tyco International Ltd. ........................ 4,846 158,125
----------
TOTAL INDUSTRIAL CONGLOMERATES 652,671
----------
MACHINERY 25.8%
Caterpillar, Inc. .............................. 2,369 172,037
Cummins, Inc. .................................. 2,162 199,250
Danaher Corp. .................................. 2,108 150,068
Deere & Co. .................................... 1,360 148,784
Dover Corp. .................................... 3,151 151,626
Eaton Corp. .................................... 1,815 161,916
Illinois Tool Works, Inc. ...................... 2,968 152,288
Ingersoll-Rand Co., Ltd. -- Class A............. 3,483 155,516
ITT Corp. ...................................... 2,516 160,546
PACCAR, Inc. ................................... 2,070 173,839
Pall Corp. ..................................... 3,929 164,821
Parker-Hannifin Corp. .......................... 1,815 167,234
Terex Corp.*.................................... 2,189 170,414
----------
TOTAL MACHINERY 2,128,339
----------
ROAD & RAIL 9.9%
Burlington Northern Santa Fe Corp. ............. 1,875 164,138
CSX Corp. ...................................... 3,732 161,110
Norfolk Southern Corp. ......................... 3,070 163,447
Ryder System, Inc. ............................. 3,019 158,920
Union Pacific Corp. ............................ 1,497 171,032
----------
TOTAL ROAD & RAIL 818,647
----------
TRADING COMPANIES & DISTRIBUTORS 2.0%
W.W. Grainger, Inc. ............................ 1,989 164,331
----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 164,331
----------
TOTAL COMMON STOCKS
(Cost $7,420,653) 8,244,083
----------
SHORT TERM INVESTMENTS 0.2%
SSgA Prime Money Market Fund.................... 12,578 12,578
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $12,578) 12,578
----------
TOTAL INVESTMENTS 100.0%
(Cost $7,433,231) 8,256,661
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,053
----------
NET ASSETS--100.0% $8,257,714
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 57
RYDEX S&P EQUAL WEIGHT MATERIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.9%
CHEMICALS 45.6%
Air Products & Chemicals, Inc. ................. 2,632 $201,348
Ashland, Inc. .................................. 3,063 183,627
Dow Chemical Co. (The).......................... 4,266 190,306
Du Pont (E.I.) de Nemours & Co. ................ 3,863 189,944
Eastman Chemical Co. ........................... 3,179 215,218
Ecolab, Inc. ................................... 4,548 195,519
Hercules, Inc.*................................. 9,585 180,581
International Flavors & Fragrances, Inc. ....... 4,176 203,246
Monsanto Co. ................................... 3,743 220,800
PPG Industries, Inc. ........................... 2,796 205,730
Praxair, Inc. .................................. 3,189 205,850
Rohm & Haas Co. ................................ 3,808 194,855
Sigma-Aldrich Corp. ............................ 4,826 203,078
----------
TOTAL CHEMICALS 2,590,102
----------
CONSTRUCTION MATERIALS 3.7%
Vulcan Materials Co. ........................... 1,677 207,394
----------
TOTAL CONSTRUCTION MATERIALS 207,394
----------
CONTAINERS & PACKAGING 18.0%
Ball Corp. ..................................... 4,268 216,345
Bemis Co., Inc. ................................ 5,889 195,633
Pactiv Corp.*................................... 6,157 212,909
Sealed Air Corp. ............................... 6,095 200,525
Temple-Inland, Inc. ............................ 3,324 196,914
----------
TOTAL CONTAINERS & PACKAGING 1,022,326
----------
METALS & MINING 21.7%
Alcoa, Inc. .................................... 5,765 204,600
Allegheny Technologies, Inc. ................... 1,877 205,682
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc. -- Class
B............................................. 3,179 $213,502
Newmont Mining Corp. (Holding Co.).............. 4,490 187,233
Nucor Corp. .................................... 3,131 198,693
United States Steel Corp. ...................... 2,166 219,935
----------
TOTAL METALS & MINING 1,229,645
----------
PAPER & FOREST PRODUCTS 10.9%
International Paper Co. ........................ 5,468 206,253
MeadWestvaco Corp. ............................. 6,586 219,709
Weyerhaeuser Co. ............................... 2,443 193,534
----------
TOTAL PAPER & FOREST PRODUCTS 619,496
----------
TOTAL COMMON STOCKS
(Cost $5,362,571) 5,668,963
----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 3,765 3,765
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $3,765) 3,765
----------
TOTAL INVESTMENTS 100.0%
(Cost $5,366,336) 5,672,728
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,559
----------
NET ASSETS--100.0% $5,674,287
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 58
RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.9%
COMMUNICATIONS EQUIPMENT 13.9%
ADC Telecommunications, Inc.*................... 10,163 $186,999
Avaya, Inc.*.................................... 14,230 183,852
Ciena Corp.*.................................... 6,577 191,785
Cisco Systems, Inc.*............................ 6,384 170,708
Corning, Inc.*.................................. 7,591 180,058
JDS Uniphase Corp.*............................. 10,937 180,242
Juniper Networks, Inc.*......................... 9,150 204,594
Motorola, Inc. ................................. 9,108 157,842
QUALCOMM, Inc. ................................. 3,804 166,615
Tellabs, Inc.*.................................. 16,645 176,770
-----------
TOTAL COMMUNICATIONS EQUIPMENT 1,799,465
-----------
COMPUTERS & PERIPHERALS 14.7%
Apple, Inc.*.................................... 1,849 184,530
Dell, Inc.*..................................... 7,378 186,000
EMC Corp.*...................................... 12,746 193,484
Hewlett-Packard Co. ............................ 4,152 174,965
International Business Machines Corp. .......... 1,777 181,627
Lexmark International, Inc. -- Class A*......... 2,792 152,164
NCR Corp.*...................................... 3,475 175,140
Network Appliance, Inc.*........................ 4,524 168,338
QLogic Corp.*................................... 9,699 173,418
SanDisk Corp.*.................................. 4,088 177,624
Sun Microsystems, Inc.*......................... 26,597 138,836
-----------
TOTAL COMPUTERS & PERIPHERALS 1,906,126
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 7.7%
Agilent Technologies, Inc.*..................... 5,222 179,480
Jabil Circuit, Inc. ............................ 6,347 147,885
Molex, Inc. .................................... 5,803 173,394
Sanmina-SCI Corp.*.............................. 44,282 152,773
Solectron Corp.*................................ 51,840 173,664
Tektronix, Inc. ................................ 5,884 172,931
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,000,127
-----------
INTERNET SOFTWARE & SERVICES 5.3%
eBay, Inc.*..................................... 5,227 177,404
Google, Inc. -- Class A*........................ 375 176,767
VeriSign, Inc.*................................. 6,719 183,765
Yahoo!, Inc.*................................... 5,546 155,510
-----------
TOTAL INTERNET SOFTWARE & SERVICES 693,446
-----------
IT SERVICES 16.3%
Affiliated Computer Services, Inc. -- Class
A*............................................ 3,248 194,588
Automatic Data Processing, Inc. ................ 3,833 171,565
Cognizant Technology Solutions Corp. -- Class
A*............................................ 1,868 166,999
Computer Sciences Corp.*........................ 3,269 181,560
Convergys Corp.*................................ 6,636 167,625
Electronic Data Systems Corp. .................. 6,032 176,376
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
Fidelity National Information Services, Inc. ... 3,793 $191,660
First Data Corp. ............................... 6,727 217,955
Fiserv, Inc.*................................... 3,262 173,441
Paychex, Inc. .................................. 4,175 154,893
Unisys Corp.*................................... 20,050 157,192
Western Union Co. (The)......................... 7,621 160,422
-----------
TOTAL IT SERVICES 2,114,276
-----------
OFFICE ELECTRONICS 1.4%
Xerox Corp.*.................................... 9,855 182,318
-----------
TOTAL OFFICE ELECTRONICS 182,318
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 24.3%
Advanced Micro Devices, Inc.*................... 11,801 163,090
Altera Corp.*................................... 7,968 179,599
Analog Devices, Inc. ........................... 4,688 181,051
Applied Materials, Inc. ........................ 8,962 172,250
Broadcom Corp. -- Class A*...................... 4,870 158,518
Intel Corp. .................................... 8,663 186,254
KLA-Tencor Corp. ............................... 3,187 177,038
Linear Technology Corp. ........................ 4,936 184,705
LSI Logic Corp.*................................ 16,425 139,612
Maxim Integrated Products, Inc. ................ 5,191 164,659
Micron Technology, Inc.*........................ 14,456 165,810
National Semiconductor Corp. ................... 6,619 174,080
Novellus Systems, Inc.*......................... 5,062 163,857
NVIDIA Corp.*................................... 5,850 192,406
PMC -- Sierra, Inc.*............................ 25,308 195,631
Teradyne, Inc.*................................. 9,922 173,139
Texas Instruments, Inc. ........................ 5,290 181,817
Xilinx, Inc. ................................... 6,491 191,355
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3,144,871
-----------
SOFTWARE 16.3%
Adobe Systems, Inc.*............................ 4,240 176,214
Autodesk, Inc.*................................. 4,414 182,166
BMC Software, Inc.*............................. 5,353 173,277
CA, Inc. ....................................... 6,552 178,608
Citrix Systems, Inc.*........................... 5,317 173,334
Compuware Corp.*................................ 17,676 174,462
Electronic Arts, Inc.*.......................... 3,367 169,730
Intuit, Inc.*................................... 5,766 164,043
Microsoft Corp. ................................ 6,067 181,646
Novell, Inc.*................................... 23,664 172,747
Oracle Corp.*................................... 9,923 186,552
Symantec Corp.*................................. 9,825 172,920
-----------
TOTAL SOFTWARE 2,105,699
-----------
TOTAL COMMON STOCKS
(Cost $12,214,329) 12,946,328
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 59
RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
SHORT TERM INVESTMENTS 0.0%(A)
SSgA Prime Money Market Fund.................... 100 $100
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $100) 100
-----------
TOTAL INVESTMENTS 99.9%
(Cost $12,214,429) 12,946,428
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 6,634
-----------
NET ASSETS--100.0% $12,953,062
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 60
RYDEX S&P EQUAL WEIGHT UTILITIES ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2007
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.5%
DIVERSIFIED TELECOMMUNICATION SERVICES 16.8%
AT&T, Inc. ..................................... 5,799 $224,537
CenturyTel, Inc. ............................... 4,914 226,290
Citizens Communications Co. .................... 15,009 233,690
Embarq Corp. ................................... 3,996 239,920
Qwest Communications International, Inc.*....... 24,818 220,384
Verizon Communications, Inc. ................... 5,905 225,453
Windstream Corp.*............................... 14,879 217,531
----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 1,587,805
----------
ELECTRIC UTILITIES 31.9%
Allegheny Energy, Inc.*......................... 4,507 240,944
American Electric Power Co., Inc. .............. 4,661 234,075
Duke Energy Corp. .............................. 10,927 224,222
Edison International............................ 4,426 231,701
Entergy Corp. .................................. 2,149 243,138
Exelon Corp. ................................... 3,257 245,610
FirstEnergy Corp. .............................. 3,401 232,765
FPL Group, Inc. ................................ 3,605 232,054
Integrys Energy Group, Inc. .................... 3,989 223,783
Pinnacle West Capital Corp. .................... 4,541 219,285
PPL Corp. ...................................... 5,673 247,400
Progress Energy, Inc. .......................... 4,336 219,185
Southern Co. ................................... 6,041 228,289
----------
TOTAL ELECTRIC UTILITIES 3,022,451
----------
GAS UTILITIES 5.0%
Nicor, Inc. .................................... 4,548 233,039
Questar Corp. .................................. 2,499 242,728
----------
TOTAL GAS UTILITIES 475,767
----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 9.7%
AES Corp.*...................................... 10,385 228,366
Constellation Energy Group, Inc. ............... 2,559 228,058
Dynegy, Inc.*................................... 25,160 236,756
TXU Corp. ...................................... 3,412 223,759
----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS
916,939
----------
</Table>
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
MULTI-UTILITIES 31.4%
Ameren Corp. ................................... 4,357 $229,047
CenterPoint Energy, Inc. ....................... 12,271 231,063
CMS Energy Corp. ............................... 12,553 232,482
Consolidated Edison, Inc. ...................... 4,416 226,364
Dominion Resources, Inc. ....................... 2,516 229,459
DTE Energy Co. ................................. 4,611 233,270
KeySpan Corp. .................................. 5,260 217,817
NiSource, Inc. ................................. 9,019 221,777
PG&E Corp. ..................................... 4,641 234,835
Public Service Enterprise Group, Inc. .......... 2,762 238,775
Sempra Energy................................... 3,551 225,417
TECO Energy, Inc. .............................. 12,746 228,791
Xcel Energy, Inc. .............................. 9,099 219,195
----------
TOTAL MULTI-UTILITIES 2,968,292
----------
WIRELESS TELECOMMUNICATION SERVICES 4.7%
ALLTEL Corp. ................................... 3,467 217,346
Sprint Nextel Corp. ............................ 11,259 225,518
----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 442,864
----------
TOTAL COMMON STOCKS
(Cost $8,359,552) 9,414,118
----------
SHORT TERM INVESTMENTS 0.4%
SSgA Prime Money Market Fund.................... 33,929 33,929
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $33,929) 33,929
----------
TOTAL INVESTMENTS 99.9%
(Cost $8,393,481) 9,448,047
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 12,429
----------
NET ASSETS--100.0% $9,460,476
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 61
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX RYDEX RYDEX S&P RYDEX S&P
S&P EQUAL RUSSELL TOP 500 PURE 500 PURE
WEIGHT ETF 50 ETF VALUE ETF GROWTH ETF
-------------- ------------ ----------- -----------
ASSETS
Investments at Market Value*........................... $2,283,726,816 $538,795,422 $43,341,022 $51,478,217
Receivables:
Investments Sold..................................... 105,122 -- -- 4,378
Dividends............................................ 1,431,803 489,367 53,349 16,390
Rydex In-kind Subscriptions.......................... 10,464 -- -- --
-------------- ------------ ----------- -----------
TOTAL ASSETS....................................... 2,285,274,205 539,284,789 43,394,371 51,498,985
-------------- ------------ ----------- -----------
LIABILITIES
Payables:
Accrued Management Fees.............................. 719,315 88,420 11,218 13,452
-------------- ------------ ----------- -----------
TOTAL LIABILITIES.................................. 719,315 88,420 11,218 13,452
-------------- ------------ ----------- -----------
NET ASSETS............................................. $2,284,554,890 $539,196,369 $43,383,153 $51,485,533
============== ============ =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital........................................ $2,012,616,323 $511,011,746 $39,525,027 $48,646,543
Undistributed Net Investment Income.................... 3,253,480 511,400 64,039 81,279
Accumulated Net Realized Gain/(Loss) on Investments.... (9,940,772) (1,076,496) 442,000 187,152
Net Unrealized Appreciation on Investments............. 278,625,859 28,749,719 3,352,087 2,570,559
-------------- ------------ ----------- -----------
NET ASSETS............................................. $2,284,554,890 $539,196,369 $43,383,153 $51,485,533
============== ============ =========== ===========
Shares Outstanding (Unlimited Shares Authorized), No
Par Value............................................ 45,108,865 4,900,019 1,200,038 1,350,007
============== ============ =========== ===========
Net Asset Value, Offering Price and Repurchase Price
Per Share............................................ $ 50.65 $ 110.04 $ 36.15 $ 38.14
============== ============ =========== ===========
*Total Cost of Investments............................. $2,005,100,957 $510,045,703 $39,988,935 $48,907,658
============== ============ =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 62
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P
MIDCAP 400 MIDCAP 400 SMALLCAP 600 SMALLCAP 600
PURE VALUE ETF PURE GROWTH ETF PURE VALUE ETF PURE GROWTH ETF
-------------- --------------- -------------- ---------------
ASSETS
Investments at Market Value*.................. $22,321,523 $22,391,212 $23,792,206 $10,580,944
Receivables:
Dividends................................... 23,970 3,216 24,628 463
----------- ----------- ----------- -----------
TOTAL ASSETS.............................. 22,345,493 22,394,428 23,816,834 10,581,407
----------- ----------- ----------- -----------
LIABILITIES
Payables:
Accrued Management Fees..................... 5,757 6,303 6,672 2,995
----------- ----------- ----------- -----------
TOTAL LIABILITIES......................... 5,757 6,303 6,672 2,995
----------- ----------- ----------- -----------
NET ASSETS.................................... $22,339,736 $22,388,125 $23,810,162 $10,578,412
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital............................... $21,108,026 $21,341,805 $22,721,168 $ 9,914,908
Undistributed Net Investment Income/(Loss).... 28,637 (2,017) 30,605 (4,455)
Accumulated Net Realized Gain on
Investments................................. 551,110 143,108 104,031 46,872
Net Unrealized Appreciation on Investments.... 651,963 905,229 954,358 621,087
----------- ----------- ----------- -----------
NET ASSETS.................................... $22,339,736 $22,388,125 $23,810,162 $10,578,412
=========== =========== =========== ===========
Shares Outstanding (Unlimited Shares
Authorized), No Par Value................... 600,017 400,008 550,007 250,000
=========== =========== =========== ===========
Net Asset Value, Offering Price and Repurchase
Price Per Share............................. $ 37.23 $ 55.97 $ 43.29 $ 42.31
=========== =========== =========== ===========
*Total Cost of Investments.................... $21,669,560 $21,485,983 $22,837,848 $ 9,959,857
=========== =========== =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 63
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P
CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT
DISCRETIONARY ETF STAPLES ETF ENERGY ETF FINANCIALS ETF
----------------- ------------ ------------ --------------
ASSETS
Investments at Market Value*....................... $56,461,870 $7,853,351 $8,393,379 $5,178,970
Receivables:
Investments Sold................................. -- 4,892 -- --
Dividends........................................ 16,299 7,791 2,787 5,302
----------- ---------- ---------- ----------
TOTAL ASSETS................................... 56,478,169 7,866,034 8,396,166 5,184,272
----------- ---------- ---------- ----------
LIABILITIES
Payables:
Accrued Management Fees.......................... 18,625 3,193 3,385 2,101
----------- ---------- ---------- ----------
TOTAL LIABILITIES.............................. 18,625 3,193 3,385 2,101
----------- ---------- ---------- ----------
NET ASSETS......................................... $56,459,544 $7,862,841 $8,392,781 $5,182,171
=========== ========== ========== ==========
NET ASSETS CONSIST OF:
Paid-in Capital.................................... $54,817,900 $7,224,635 $7,251,932 $4,977,639
Undistributed Net Investment Income/(Loss)......... 1,819 71,341 (956) 9,033
Accumulated Net Realized Gain on Investments....... 108,691 47,344 49,951 20,380
Net Unrealized Appreciation on Investments......... 1,531,134 519,521 1,091,854 175,119
----------- ---------- ---------- ----------
NET ASSETS......................................... $56,459,544 $7,862,841 $8,392,781 $5,182,171
=========== ========== ========== ==========
Shares Outstanding (Unlimited Shares Authorized),
No Par Value..................................... 1,150,000 150,000 150,000 100,000
=========== ========== ========== ==========
Net Asset Value, Offering Price and Repurchase
Price Per Share.................................. $ 49.10 $ 52.42 $ 55.95 $ 51.82
=========== ========== ========== ==========
*Total Cost of Investments......................... $54,930,736 $7,333,830 $7,301,525 $5,003,851
=========== ========== ========== ==========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 64
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT
HEALTH CARE ETF INDUSTRIALS ETF MATERIALS ETF TECHNOLOGY ETF UTILITIES ETF
--------------- --------------- ------------- -------------- -------------
ASSETS
Investments at Market Value*......... $8,515,868 $8,256,661 $5,672,728 $12,946,428 $9,448,047
Receivables:
Investments Sold................... -- -- -- 13,045 --
Dividends.......................... 3,274 4,366 3,892 2,195 16,292
---------- ---------- ---------- ----------- ----------
TOTAL ASSETS..................... 8,519,142 8,261,027 5,676,620 12,961,668 9,464,339
---------- ---------- ---------- ----------- ----------
LIABILITIES
Payables:
Due to Custodian................... -- -- -- 3,562 --
Accrued Management Fees............ 3,417 3,313 2,333 5,044 3,863
---------- ---------- ---------- ----------- ----------
TOTAL LIABILITIES................ 3,417 3,313 2,333 8,606 3,863
---------- ---------- ---------- ----------- ----------
NET ASSETS........................... $8,515,725 $8,257,714 $5,674,287 $12,953,062 $9,460,476
========== ========== ========== =========== ==========
NET ASSETS CONSIST OF:
Paid-in Capital...................... $7,419,653 $7,372,664 $5,315,351 $12,154,577 $8,341,382
Undistributed Net Investment
Income/(Loss)...................... 5,477 498 4,143 (5,137) 20,345
Accumulated Net Realized Gain on
Investments........................ 136,342 61,122 48,401 71,623 44,183
Net Unrealized Appreciation on
Investments........................ 954,253 823,430 306,392 731,999 1,054,566
---------- ---------- ---------- ----------- ----------
NET ASSETS........................... $8,515,725 $8,257,714 $5,674,287 $12,953,062 $9,460,476
========== ========== ========== =========== ==========
Shares Outstanding (Unlimited Shares
Authorized), No Par Value.......... 150,000 150,000 100,000 250,000 150,000
========== ========== ========== =========== ==========
Net Asset Value, Offering Price and
Repurchase Price Per Share......... $ 56.77 $ 55.05 $ 56.74 $ 51.81 $ 63.07
========== ========== ========== =========== ==========
*Total Cost of Investments........... $7,561,615 $7,433,231 $5,366,336 $12,214,429 $8,393,481
========== ========== ========== =========== ==========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 65
STATEMENTS OF OPERATIONS For the Period Ended
April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX RYDEX RYDEX S&P RYDEX S&P
S&P EQUAL RUSSELL 500 PURE 500 PURE
WEIGHT ETF TOP 50 ETF VALUE ETF GROWTH ETF
------------ ------------- ---------- ----------
INVESTMENT INCOME
Dividends............................................. $ 16,861,399 $ 5,470,133 $ 329,649 $ 180,770
------------ ----------- ---------- ----------
Total Income........................................ 16,861,399 5,470,133 329,649 180,770
------------ ----------- ---------- ----------
EXPENSES
Management Fee........................................ 3,931,442 506,557 47,581 51,666
Other Fees............................................ -- -- -- 4
------------ ----------- ---------- ----------
Total Expenses...................................... 3,931,442 506,557 47,581 51,670
------------ ----------- ---------- ----------
Net Investment Income................................... 12,929,957 4,963,576 282,068 129,100
------------ ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net Realized Gain/(Loss) From:
Investments........................................... 7,248,178 (273,546) 494,641 238,903
In-kind Redemptions................................... 32,680,387 19,526,792 -- --
------------ ----------- ---------- ----------
Net Realized Gain................................... 39,928,565 19,253,246 494,641 238,903
Net Change in Unrealized Appreciation on Investments.... 144,848,315 8,069,156 2,341,111 2,004,100
------------ ----------- ---------- ----------
Net Realized and Unrealized Gain on Investments......... 184,776,880 27,322,402 2,835,752 2,243,003
------------ ----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $197,706,837 $32,285,978 $3,117,820 $2,372,103
============ =========== ========== ==========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 66
STATEMENTS OF OPERATIONS For the Period Ended
April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P
MIDCAP MIDCAP SMALLCAP SMALLCAP
400 PURE 400 PURE 600 PURE 600 PURE
VALUE ETF GROWTH ETF VALUE ETF GROWTH ETF
---------- ---------- ---------- ----------
INVESTMENT INCOME
Dividends................................................ $ 211,661 $ 151,182 $125,341 $ 10,314
Foreign Taxes Withheld................................... -- -- (95) --
---------- ---------- -------- --------
Total Income........................................... 211,661 151,182 125,246 10,314
---------- ---------- -------- --------
EXPENSES
Management Fee........................................... 25,425 40,511 22,088 14,769
Other Fees............................................... -- 6 135 --
---------- ---------- -------- --------
Total Expenses......................................... 25,425 40,517 22,223 14,769
---------- ---------- -------- --------
Net Investment Income/(Loss)............................... 186,236 110,665 103,023 (4,455)
---------- ---------- -------- --------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net Realized Gain From:
Investments.............................................. 651,071 230,732 128,746 104,503
In-kind Redemptions...................................... 660,378 482,886 -- --
---------- ---------- -------- --------
Net Realized Gain...................................... 1,311,449 713,618 128,746 104,503
Net Change in Unrealized Appreciation/(Depreciation) on
Investments.............................................. (94) 1,897,877 685,076 567,476
---------- ---------- -------- --------
Net Realized and Unrealized Gain on Investments............ 1,311,355 2,611,495 813,822 671,979
---------- ---------- -------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS... $1,497,591 $2,722,160 $916,845 $667,524
========== ========== ======== ========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 67
STATEMENTS OF OPERATIONS For the Period Ended
April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P
CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT
DISCRETIONARY ETF* STAPLES ETF* ENERGY ETF* FINANCIALS ETF*
------------------ ------------ ------------ ---------------
INVESTMENT INCOME
Dividends..................................... $ 164,235 $135,695 $ 38,982 $ 64,961
---------- -------- ---------- --------
Total Income................................ 164,235 135,695 38,982 64,961
---------- -------- ---------- --------
EXPENSES
Management Fee................................ 71,427 18,404 18,872 14,395
Other Fees.................................... 24 -- -- --
---------- -------- ---------- --------
Total Expenses.............................. 71,451 18,404 18,872 14,395
---------- -------- ---------- --------
Net Investment Income........................... 92,784 117,291 20,110 50,566
---------- -------- ---------- --------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS
Net Realized Gain From:
Investments................................... 108,691 47,344 49,951 20,380
In-kind Redemptions........................... -- -- -- 410,092
---------- -------- ---------- --------
Net Realized Gain........................... 108,691 47,344 49,951 430,472
Net Change in Unrealized Appreciation on
Investments................................... 1,531,134 519,521 1,091,854 175,119
---------- -------- ---------- --------
Net Realized and Unrealized Gain on
Investments................................... 1,639,825 566,865 1,141,805 605,591
---------- -------- ---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................ $1,732,609 $684,156 $1,161,915 $656,157
========== ======== ========== ========
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 68
STATEMENTS OF OPERATIONS For the Period Ended
April 30, 2007 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT
HEALTH CARE ETF* INDUSTRIALS ETF* MATERIALS ETF* TECHNOLOGY ETF* UTILITIES ETF*
---------------- ---------------- -------------- --------------- --------------
INVESTMENT INCOME
Dividends...................... $ 32,924 $ 63,499 $ 100,003 $ 15,274 $ 124,847
---------- -------- ---------- -------- ----------
Total Income................. 32,924 63,499 100,003 15,274 124,847
---------- -------- ---------- -------- ----------
EXPENSES
Management Fee................. 19,361 19,258 23,150 20,411 20,149
---------- -------- ---------- -------- ----------
Total Expenses............... 19,361 19,258 23,150 20,411 20,149
---------- -------- ---------- -------- ----------
Net Investment Income/(Loss)..... 13,563 44,241 76,853 (5,137) 104,698
---------- -------- ---------- -------- ----------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net Realized Gain From:
Investments.................... 136,342 61,122 48,401 71,623 44,183
In-kind Redemptions............ -- -- 1,038,098 -- 209,134
---------- -------- ---------- -------- ----------
Net Realized Gain............ 136,342 61,122 1,086,499 71,623 253,317
Net Change in Unrealized
Appreciation on Investments.... 954,253 823,430 306,392 731,999 1,054,566
---------- -------- ---------- -------- ----------
Net Realized and Unrealized Gain
on Investments................. 1,090,595 884,552 1,392,891 803,622 1,307,883
---------- -------- ---------- -------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................. $1,104,158 $928,793 $1,469,744 $798,485 $1,412,581
========== ======== ========== ======== ==========
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 69
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT ETF
---------------------------------
SIX MONTHS
ENDED
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
-------------- ----------------
OPERATIONS
Net Investment Income..................................... $ 12,929,957 $ 18,288,154
Net Realized Gain......................................... 39,928,565 98,930,337
Net Change in Unrealized Appreciation on Investments...... 144,848,315 112,521,932
-------------- --------------
Net Increase in Net Assets Resulting From Operations...... 197,706,837 229,740,423
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income..................................... (10,772,207) (17,292,008)
-------------- --------------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold................................. 476,159,445 1,072,339,911
Value of Shares Reinvested................................ 108,784 114,370
Value of Shares Repurchased............................... (138,445,077) (596,515,156)
-------------- --------------
Net Increase in Net Assets Resulting From Share
Transactions............................................ 337,823,152 475,939,125
-------------- --------------
Increase in Net Assets.................................. 524,757,782 688,387,540
NET ASSETS--BEGINNING OF PERIOD............................. 1,759,797,108 1,071,409,568
-------------- --------------
NET ASSETS--END OF PERIOD(1)................................ $2,284,554,890 $1,759,797,108
============== ==============
(1) Including Undistributed Net Investment Income........... $ 3,253,480 $ 1,095,730
============== ==============
CHANGES IN SHARES OUTSTANDING:
Shares Sold............................................... 9,800,000 14,253,000
Shares Issued in Connection with Stock Split.............. -- 27,150,006
Shares Reinvested......................................... 2,276 2,583
Shares Repurchased........................................ (2,900,000) (9,950,000)
Shares Outstanding, Beginning of Period................... 38,206,589 6,751,000
-------------- --------------
Shares Outstanding, End of Period......................... 45,108,865 38,206,589
============== ==============
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 70
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX RUSSELL TOP 50 ETF
---------------------------------
SIX MONTHS
ENDED
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006
-------------- ----------------
OPERATIONS
Net Investment Income..................................... $ 4,963,576 $ 3,238,051
Net Realized Gain......................................... 19,253,246 6,613,107
Net Change in Unrealized Appreciation on Investments...... 8,069,156 22,742,988
------------- ------------
Net Increase in Net Assets Resulting From Operations...... 32,285,978 32,594,146
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income..................................... (4,882,377) (3,010,095)
------------- ------------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold................................. 271,604,712 275,530,048
Value of Shares Reinvested................................ 1,488 512
Value of Shares Repurchased............................... (124,354,847) (77,658,417)
------------- ------------
Net Increase in Net Assets Resulting From Share
Transactions............................................ 147,251,353 197,872,143
------------- ------------
Increase in Net Assets.................................. 174,654,954 227,456,194
NET ASSETS--BEGINNING OF PERIOD............................. 364,541,415 137,085,221
------------- ------------
NET ASSETS--END OF PERIOD(1)................................ $ 539,196,369 $364,541,415
============= ============
(1) Including Undistributed Net Investment Income........... $ 511,400 $ 430,201
============= ============
CHANGES IN SHARES OUTSTANDING:
Shares Sold............................................... 2,550,000 2,800,000
Shares Reinvested......................................... 14 5
Shares Repurchased........................................ (1,150,000) (800,000)
Shares Outstanding, Beginning of Period................... 3,500,005 1,500,000
------------- ------------
Shares Outstanding, End of Period......................... 4,900,019 3,500,005
============= ============
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 71
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF
--------------------------------- ---------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED MARCH 1, 2006* ENDED MARCH 1, 2006*
APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH
(UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006
-------------- ---------------- -------------- ----------------
OPERATIONS
Net Investment Income.............................. $ 282,068 $ 191,191 $ 129,100 $ 43,592
Net Realized Gain/(Loss)........................... 494,641 (56,285) 238,903 (51,751)
Net Change in Unrealized Appreciation on
Investments...................................... 2,341,111 1,010,976 2,004,100 566,459
----------- ----------- ----------- -----------
Net Increase in Net Assets Resulting From
Operations....................................... 3,117,820 1,145,882 2,372,103 558,300
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income.............................. (280,397) (125,179) (54,350) (37,063)
----------- ----------- ----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold.......................... 19,312,213 20,211,486 31,518,196 17,128,091
Value of Shares Reinvested......................... 1,328 -- 256 --
Value of Shares Repurchased........................ -- -- -- --
----------- ----------- ----------- -----------
Net Increase in Net Assets Resulting From Share
Transactions..................................... 19,313,541 20,211,486 31,518,452 17,128,091
----------- ----------- ----------- -----------
Increase in Net Assets........................... 22,150,964 21,232,189 33,836,205 17,649,328
NET ASSETS--BEGINNING OF PERIOD...................... 21,232,189 -- 17,649,328 --
----------- ----------- ----------- -----------
NET ASSETS--END OF PERIOD(1)......................... $43,383,153 $21,232,189 $51,485,533 $17,649,328
=========== =========== =========== ===========
(1) Including Undistributed Net Investment Income.... $ 64,039 $ 62,368 $ 81,279 $ 6,529
=========== =========== =========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................................ 550,000 650,000 850,000 500,000
Shares Reinvested.................................. 38 -- 7 --
Shares Repurchased................................. -- -- -- --
Shares Outstanding, Beginning of Period............ 650,000 -- 500,000 --
----------- ----------- ----------- -----------
Shares Outstanding, End of Period.................. 1,200,038 650,000 1,350,007 500,000
=========== =========== =========== ===========
</Table>
* The Fund commenced operations on March 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 72
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P MIDCAP 400 RYDEX S&P MIDCAP 400
PURE VALUE ETF PURE GROWTH ETF
--------------------------------- ---------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED MARCH 1, 2006* ENDED MARCH 1, 2006*
APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH
(UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006
-------------- ---------------- -------------- ----------------
OPERATIONS
Net Investment Income.............................. $ 186,236 $ 161,783 $ 110,665 $ 8,022
Net Realized Gain/(Loss)........................... 1,311,449 (106,316) 713,618 (23,417)
Net Change in Unrealized
Appreciation/(Depreciation) on Investments....... (94) 652,057 1,897,877 (992,648)
----------- ----------- ----------- -----------
Net Increase/(Decrease) in Net Assets Resulting
From Operations.................................. 1,497,591 707,524 2,722,160 (1,008,043)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income.............................. (179,556) (133,471) (115,045) (5,659)
Net Realized Gains................................. -- -- (64,207) --
----------- ----------- ----------- -----------
Total Distributions................................ (179,556) (133,471) (179,252) (5,659)
----------- ----------- ----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold.......................... 14,803,538 14,398,483 2,708,945 23,560,420
Value of Shares Reinvested......................... 618 -- 432 --
Value of Shares Repurchased........................ (8,754,991) -- (5,410,878) --
----------- ----------- ----------- -----------
Net Increase/(Decrease) in Net Assets Resulting
From Share Transactions.......................... 6,049,165 14,398,483 (2,701,501) 23,560,420
----------- ----------- ----------- -----------
Increase/(Decrease) in Net Assets................ 7,367,200 14,972,536 (158,593) 22,546,718
NET ASSETS--BEGINNING OF PERIOD...................... 14,972,536 -- 22,546,718 --
----------- ----------- ----------- -----------
NET ASSETS--END OF PERIOD(1)......................... $22,339,736 $14,972,536 $22,388,125 $22,546,718
=========== =========== =========== ===========
(1) Including Undistributed Net Investment
Income/(Loss).................................... $ 28,637 $ 21,957 $ (2,017) $ 2,363
=========== =========== =========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................................ 400,000 450,000 50,000 450,000
Shares Reinvested.................................. 17 -- 8 --
Shares Repurchased................................. (250,000) -- (100,000) --
Shares Outstanding, Beginning of Period............ 450,000 -- 450,000 --
----------- ----------- ----------- -----------
Shares Outstanding, End of Period.................. 600,017 450,000 400,008 450,000
=========== =========== =========== ===========
</Table>
* The Fund commenced operations on March 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 73
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P SMALLCAP 600 RYDEX S&P SMALLCAP 600
PURE VALUE ETF PURE GROWTH ETF
--------------------------------- ---------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED MARCH 1, 2006* ENDED MARCH 1, 2006*
APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH
(UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006
-------------- ---------------- -------------- ----------------
OPERATIONS
Net Investment Income/(Loss).......................... $ 103,023 $ 55,748 $ (4,455) $ (2,038)
Net Realized Gain/(Loss).............................. 128,746 (25,510) 104,503 (239,219)
Net Change in Unrealized Appreciation on
Investments......................................... 685,076 269,282 567,476 53,611
----------- ---------- ----------- -----------
Net Increase/(Decrease) in Net Assets Resulting From
Operations.......................................... 916,845 299,520 667,524 (187,646)
----------- ---------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income................................. (80,121) (47,250) -- --
----------- ---------- ----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold............................. 16,954,045 5,766,825 2,091,203 15,469,445
Value of Shares Reinvested............................ 298 -- -- --
Value of Shares Repurchased........................... -- -- -- (7,462,114)
----------- ---------- ----------- -----------
Net Increase in Net Assets Resulting From Share
Transactions.......................................... 16,954,343 5,766,825 2,091,203 8,007,331
----------- ---------- ----------- -----------
Increase in Net Assets................................ 17,791,067 6,019,095 2,758,727 7,819,685
NET ASSETS--BEGINNING OF PERIOD......................... 6,019,095 -- 7,819,685 --
----------- ---------- ----------- -----------
NET ASSETS--END OF PERIOD(1)............................ $23,810,162 $6,019,095 $10,578,412 $ 7,819,685
=========== ========== =========== ===========
(1) Including Undistributed Net Investment
Income/(Loss)....................................... $ 30,605 $ 7,703 $ (4,455) $ --
=========== ========== =========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................................... 400,000 150,000 50,000 400,000
Shares Reinvested..................................... 7 -- -- --
Shares Repurchased.................................... -- -- -- (200,000)
Shares Outstanding, Beginning of Period............... 150,000 -- 200,000 --
----------- ---------- ----------- -----------
Shares Outstanding, End of Period..................... 550,007 150,000 250,000 200,000
=========== ========== =========== ===========
</Table>
* The Fund commenced operations on March 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 74
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P
CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT
DISCRETIONARY ETF* STAPLES ETF* ENERGY ETF* FINANCIALS ETF*
------------------ ----------------- ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006*
THROUGH THROUGH THROUGH THROUGH
APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------------ ----------------- ----------------- -----------------
OPERATIONS
Net Investment Income.............. $ 92,784 $ 117,291 $ 20,110 $ 50,566
Net Realized Gain.................. 108,691 47,344 49,951 430,472
Net Change in Unrealized
Appreciation on Investments...... 1,531,134 519,521 1,091,854 175,119
----------- ---------- ---------- ------------
Net Increase in Net Assets
Resulting From Operations........ 1,732,609 684,156 1,161,915 656,157
----------- ---------- ---------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income.............. (90,965) (45,950) (21,066) (41,533)
----------- ---------- ---------- ------------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold.......... 54,817,900 7,224,635 7,251,932 29,560,717
Value of Shares Reinvested......... -- -- -- --
Value of Shares Repurchased........ -- -- -- (24,993,170)
----------- ---------- ---------- ------------
Net Increase in Net Assets Resulting
From
Share Transactions................. 54,817,900 7,224,635 7,251,932 4,567,547
----------- ---------- ---------- ------------
Increase in Net Assets............. 56,459,544 7,862,841 8,392,781 5,182,171
NET ASSETS--BEGINNING OF PERIOD...... -- -- -- --
----------- ---------- ---------- ------------
NET ASSETS--END OF PERIOD(1)......... $56,459,544 $7,862,841 $8,392,781 $ 5,182,171
=========== ========== ========== ============
(1) Including Undistributed Net
Investment Income/(Loss)......... $ 1,819 $ 71,341 $ (956) $ 9,033
=========== ========== ========== ============
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................ 1,150,000 150,000 150,000 600,000
Shares Reinvested.................. -- -- -- --
Shares Repurchased................. -- -- -- (500,000)
Shares Outstanding, Beginning of
Period........................... -- -- -- --
----------- ---------- ---------- ------------
Shares Outstanding, End of
Period........................... 1,150,000 150,000 150,000 100,000
=========== ========== ========== ============
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 75
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT
HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY
ETF* ETF* ETF* ETF*
----------------- ----------------- ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006*
THROUGH THROUGH THROUGH THROUGH
APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------------- ----------------- ----------------- -----------------
OPERATIONS
Net Investment
Income/(Loss)......... $ 13,563 $ 44,241 $ 76,853 $ (5,137)
Net Realized Gain....... 136,342 61,122 1,086,499 71,623
Net Change in Unrealized
Appreciation on
Investments........... 954,253 823,430 306,392 731,999
---------- ---------- ------------ -----------
Net Increase in Net
Assets Resulting From
Operations............ 1,104,158 928,793 1,469,744 798,485
---------- ---------- ------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net Investment Income... (8,086) (43,743) (72,710) --
---------- ---------- ------------ -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares
Sold.................. 7,419,653 7,372,664 20,248,804 12,154,577
Value of Shares
Reinvested............ -- -- -- --
Value of Shares
Repurchased........... -- -- (15,971,551) --
---------- ---------- ------------ -----------
Net Increase in Net Assets
Resulting From Share
Transactions............ 7,419,653 7,372,664 4,277,253 12,154,577
---------- ---------- ------------ -----------
Increase in Net
Assets................ 8,515,725 8,257,714 5,674,287 12,953,062
NET ASSETS--BEGINNING OF
PERIOD.................. -- -- -- --
---------- ---------- ------------ -----------
NET ASSETS--END OF
PERIOD(1)............... $8,515,725 $8,257,714 $ 5,674,287 $12,953,062
========== ========== ============ ===========
(1) Including
Undistributed Net
Investment
Income/(Loss)......... $ 5,477 $ 498 $ 4,143 $ (5,137)
========== ========== ============ ===========
CHANGES IN SHARES
OUTSTANDING:
Shares Sold............. 150,000 150,000 400,000 250,000
Shares Reinvested....... -- -- -- --
Shares Repurchased...... -- -- (300,000) --
Shares Outstanding,
Beginning of Period... -- -- -- --
---------- ---------- ------------ -----------
Shares Outstanding, End
of Period............. 150,000 150,000 100,000 250,000
========== ========== ============ ===========
<Caption>
RYDEX S&P
EQUAL WEIGHT
UTILITIES
ETF*
-----------------
FOR THE PERIOD
NOVEMBER 1, 2006*
THROUGH
APRIL 30, 2007
(UNAUDITED)
-----------------
OPERATIONS
Net Investment
Income/(Loss)......... $ 104,698
Net Realized Gain....... 253,317
Net Change in Unrealized
Appreciation on
Investments........... 1,054,566
-----------
Net Increase in Net
Assets Resulting From
Operations............ 1,412,581
-----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net Investment Income... (84,353)
-----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares
Sold.................. 13,839,342
Value of Shares
Reinvested............ --
Value of Shares
Repurchased........... (5,707,094)
-----------
Net Increase in Net Assets
Resulting From Share
Transactions............ 8,132,248
-----------
Increase in Net
Assets................ 9,460,476
NET ASSETS--BEGINNING OF
PERIOD.................. --
-----------
NET ASSETS--END OF
PERIOD(1)............... $ 9,460,476
===========
(1) Including
Undistributed Net
Investment
Income/(Loss)......... $ 20,345
===========
CHANGES IN SHARES
OUTSTANDING:
Shares Sold............. 250,000
Shares Reinvested....... --
Shares Repurchased...... (100,000)
Shares Outstanding,
Beginning of Period... --
-----------
Shares Outstanding, End
of Period............. 150,000
===========
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 76
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT ETF
---------------------------------------
SIX MONTHS
ENDED
APRIL 30, 2007 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2006(1)
-------------- -------------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD..... $46.06 $39.68
-------------- -------------------
Net Investment Income**... 0.31 0.52
Net Realized and
Unrealized Gain on
Investments............. 4.54 6.36
-------------- -------------------
TOTAL FROM INVESTMENT
OPERATIONS.............. 4.85 6.88
-------------- -------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income..... (0.26) (0.50)
-------------- -------------------
NET ASSET VALUE AT END OF
PERIOD.................. $50.65 $46.06
============== ===================
TOTAL RETURN***........... 10.56% 17.42%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
omitted)................ $2,284,555 $1,759,797
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.................. 0.40%**** 0.40%
Net Investment Income..... 1.32%**** 1.21%
Portfolio Turnover
Rate+................... 11% 16%
<Caption>
RYDEX S&P EQUAL WEIGHT ETF
---------------------------------------------------------------
FOR THE PERIOD
APRIL 24, 2003*
YEAR ENDED YEAR ENDED THROUGH
OCTOBER 31, 2005(1) OCTOBER 31, 2004(1) OCTOBER 31, 2003(1)
------------------- ------------------- -------------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD..... $35.70 $31.61 $25.26
------------------- ------------------- -------------------
Net Investment Income**... 0.43 0.37 0.18
Net Realized and
Unrealized Gain on
Investments............. 3.95 4.08 6.33
------------------- ------------------- -------------------
TOTAL FROM INVESTMENT
OPERATIONS.............. 4.38 4.45 6.51
------------------- ------------------- -------------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income..... (0.40) (0.36) (0.16)
------------------- ------------------- -------------------
NET ASSET VALUE AT END OF
PERIOD.................. $39.68 $35.70 $31.61
=================== =================== ===================
TOTAL RETURN***........... 12.29% 14.11% 25.77%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
omitted)................ $1,071,410 $485,636 $177,135
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.................. 0.40% 0.40% 0.40%****
Net Investment Income..... 1.11% 1.09% 1.13%****
Portfolio Turnover
Rate+................... 22% 55% 42%
</Table>
* The Fund commenced operations on April 24, 2003.
** Based on average shares outstanding.
*** Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total investment
return calculated for a period of less than one year is not annualized.
**** Annualized.
(1) All per share information representing data prior to April 26, 2006 has
been adjusted for the effect of a 4 for 1 stock split which occurred on
April 26, 2006.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 77
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX RUSSELL TOP 50 ETF
-----------------------------------------------------------
SIX MONTHS FOR THE PERIOD
ENDED MAY 4, 2005*
APRIL 30, 2007 YEAR ENDED THROUGH
(UNAUDITED) OCTOBER 31, 2006 OCTOBER 31, 2005
-------------- ---------------- ----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF PERIOD................... $104.15 $91.39 $91.51
-------------- ---------------- ----------------
Net Investment Income**.................................. 1.04 1.92 0.79
Net Realized and Unrealized Gain/(Loss) on Investments... 5.86 12.71 (0.46)
-------------- ---------------- ----------------
TOTAL FROM INVESTMENT OPERATIONS......................... 6.90 14.63 0.33
-------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income.................................... (1.01) (1.87) (0.45)
-------------- ---------------- ----------------
NET ASSET VALUE AT END OF PERIOD......................... $110.04 $104.15 $91.39
============== ================ ================
TOTAL RETURN***.......................................... 6.66% 16.18% 0.36%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's omitted).............. $539,196 $364,541 $137,085
RATIO TO AVERAGE NET ASSETS OF:
Expenses................................................. 0.20%**** 0.20% 0.20%****
Net Investment Income.................................... 1.96%**** 1.98% 1.74%****
Portfolio Turnover Rate+................................. 1% 7% 1%
</Table>
* The Fund commenced operations on May 4, 2005.
** Based on average shares outstanding.
*** Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total investment
return calculated for a period of less than one year is not annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 78
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P 500 RYDEX S&P 500
PURE VALUE ETF PURE GROWTH ETF
------------------------------------ ------------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED MARCH 1, 2006* ENDED MARCH 1, 2006*
APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH
(UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006
-------------- ---------------- -------------- ----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD...... $32.66 $29.87 $35.30 $34.42
-------------- ---------------- -------------- ---------------
Net Investment Income**.... 0.36 0.49 0.16 0.11
Net Realized and Unrealized
Gain on Investments...... 3.49 2.58 2.75 0.84
-------------- ---------------- -------------- ---------------
TOTAL FROM INVESTMENT
OPERATIONS............... 3.85 3.07 2.91 0.95
-------------- ---------------- -------------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income...... (0.36) (0.28) (0.07) (0.07)
-------------- ---------------- -------------- ---------------
NET ASSET VALUE AT END OF
PERIOD................... $36.15 $32.66 $38.14 $35.30
============== ================ ============== ===============
TOTAL RETURN***............ 11.85% 10.27% 8.24% 2.77%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period
(000's omitted).......... $43,383 $21,232 $51,486 $17,649
RATIO TO AVERAGE NET ASSETS
OF:
Expenses................... 0.35%**** 0.35%**** 0.35%**** 0.35%****
Net Investment Income...... 2.07%**** 2.37%**** 0.87%**** 0.48%****
Portfolio Turnover Rate+... 24% 4% 23% 7%
<Caption>
RYDEX S&P MIDCAP 400
PURE VALUE ETF
------------------------------------
SIX MONTHS FOR THE PERIOD
ENDED MARCH 1, 2006*
APRIL 30, 2007 THROUGH
(UNAUDITED) OCTOBER 31, 2006
-------------- ----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD...... $33.27 $31.53
-------------- ----------------
Net Investment Income**.... 0.45 0.44
Net Realized and Unrealized
Gain on Investments...... 3.93 1.60
-------------- ----------------
TOTAL FROM INVESTMENT
OPERATIONS............... 4.38 2.04
-------------- ----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income...... (0.42) (0.30)
-------------- ----------------
NET ASSET VALUE AT END OF
PERIOD................... $37.23 $33.27
============== ================
TOTAL RETURN***............ 13.23% 6.48%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period
(000's omitted).......... $22,340 $14,973
RATIO TO AVERAGE NET ASSETS
OF:
Expenses................... 0.35%**** 0.35%****
Net Investment Income...... 2.56%**** 2.07%****
Portfolio Turnover Rate+... 44% 4%
</Table>
* The Fund commenced operations on March 1, 2006.
** Based on average shares outstanding.
*** Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total investment
return calculated for a period of less than one year is not annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 79
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P MIDCAP 400 RYDEX S&P SMALLCAP 600
PURE GROWTH ETF PURE VALUE ETF
------------------------------------ ------------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED MARCH 1, 2006* ENDED MARCH 1, 2006*
APRIL 30, 2007 THROUGH APRIL 30, 2007 THROUGH
(UNAUDITED) OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2006
-------------- ---------------- -------------- ----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD..... $50.10 $52.62 $40.13 $38.45
-------------- ----------- -------------- -----------
Net Investment Income
(Loss)**................ 0.25 0.02 0.34 0.37
Net Realized and
Unrealized Gain/(Loss)
on Investments.......... 6.02 (2.53) 3.08 1.62
-------------- ----------- -------------- -----------
TOTAL FROM INVESTMENT
OPERATIONS.............. 6.27 (2.51) 3.42 1.99
-------------- ----------- -------------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income..... (0.26) (0.01) (0.26) (0.31)
Net Realized Gains........ (0.14) -- -- --
-------------- ----------- -------------- -----------
Total Distributions....... (0.40) (0.01) (0.26) (0.31)
-------------- ----------- -------------- -----------
NET ASSET VALUE AT END OF
PERIOD.................. $55.97 $50.10 $43.29 $40.13
============== =========== ============== ===========
TOTAL RETURN***........... 12.54% (4.76)% 8.56% 5.19%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
omitted)................ $22,388 $22,547 $23,810 $6,019
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.................. 0.35%**** 0.35%**** 0.35%*** 0.35%****
Net Investment Income
(Loss).................. 0.96%**** 0.07%**** 1.63%*** 1.46%****
Portfolio Turnover
Rate+................... 41% 14% 40% 7%
<Caption>
RYDEX S&P SMALLCAP 600
PURE GROWTH ETF
------------------------------------
SIX MONTHS FOR THE PERIOD
ENDED MARCH 1, 2006*
APRIL 30, 2007 THROUGH
(UNAUDITED) OCTOBER 31, 2006
-------------- ----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD..... $39.10 $39.31
-------------- ----------
Net Investment Income
(Loss)**................ (0.02) (0.01)
Net Realized and
Unrealized Gain/(Loss)
on Investments.......... 3.23 (0.20)
-------------- ----------
TOTAL FROM INVESTMENT
OPERATIONS.............. 3.21 (0.21)
-------------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income..... -- --
Net Realized Gains........ -- --
-------------- ----------
Total Distributions....... -- --
-------------- ----------
NET ASSET VALUE AT END OF
PERIOD.................. $42.31 $39.10
============== ==========
TOTAL RETURN***........... 8.22% (0.55)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
omitted)................ $10,578 $7,820
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.................. 0.35%**** 0.35%****
Net Investment Income
(Loss).................. -0.11%**** -0.04%****
Portfolio Turnover
Rate+................... 33% 14%
</Table>
* The Fund commenced operations on March 1, 2006.
** Based on average shares outstanding.
*** Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total investment
return calculated for a period of less than one year is not annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 80
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P
EQUAL WEIGHT RYDEX S&P
CONSUMER EQUAL WEIGHT
DISCRETIONARY CONSUMER STAPLES
ETF ETF
----------------- -----------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 1, 2006* NOVEMBER 1, 2006*
THROUGH THROUGH
APRIL 30, 2007 APRIL 30, 2007
(UNAUDITED) (UNAUDITED)
----------------- -----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF PERIOD... $44.98 $48.16
----------------- -----------------
Net Investment Income**.................. 0.15 0.78
Net Realized and Unrealized Gain on
Investments**.......................... 4.13 3.79
----------------- -----------------
TOTAL FROM INVESTMENT OPERATIONS......... 4.28 4.57
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income.................... (0.16) (0.31)
----------------- -----------------
NET ASSET VALUE AT END OF PERIOD......... $49.10 $52.42
================= =================
TOTAL RETURN***.......................... 9.51% 9.50%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's
omitted)............................... $56,460 $7,863
RATIO TO AVERAGE NET ASSETS OF:
Expenses................................. 0.50%**** 0.50%****
Net Investment Income.................... 0.65%**** 3.17%****
Portfolio Turnover Rate+................. 12% 9%
<Caption>
RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT
ENERGY FINANCIALS
ETF ETF
----------------- -----------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 1, 2006* NOVEMBER 1, 2006*
THROUGH THROUGH
APRIL 30, 2007 APRIL 30, 2007
(UNAUDITED) (UNAUDITED)
----------------- -----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF PERIOD... $48.35 $48.57
----------------- -----------------
Net Investment Income**.................. 0.13 0.44
Net Realized and Unrealized Gain on
Investments**.......................... 7.61 3.23
----------------- -----------------
TOTAL FROM INVESTMENT OPERATIONS......... 7.74 3.67
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income.................... (0.14) (0.42)
----------------- -----------------
NET ASSET VALUE AT END OF PERIOD......... $55.95 $51.82
================= =================
TOTAL RETURN***.......................... 16.06% 7.58%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's
omitted)............................... $8,393 $5,182
RATIO TO AVERAGE NET ASSETS OF:
Expenses................................. 0.50%**** 0.50%****
Net Investment Income.................... 0.53%**** 1.75%****
Portfolio Turnover Rate+................. 14% 15%
</Table>
* The Fund commenced operations on November 1, 2006.
** Based on average shares outstanding.
*** Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total investment
return calculated for a period of less than one year is not annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 81
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P
EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT EQUAL WEIGHT
HEALTH CARE INDUSTRIALS MATERIALS TECHNOLOGY
ETF ETF ETF ETF
----------------- ----------------- ----------------- -----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006* NOVEMBER 1, 2006*
THROUGH THROUGH THROUGH THROUGH
APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007 APRIL 30, 2007
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------------- ----------------- ----------------- -----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD..... $49.46 $49.15 $48.43 $47.80
----------------- ----------------- ----------------- -----------------
Net Investment
Income/(Loss)**......... 0.09 0.29 0.44 (0.03)
Net Realized and
Unrealized Gain on
Investments**........... 7.27 5.90 8.16 4.04
----------------- ----------------- ----------------- -----------------
TOTAL FROM INVESTMENT
OPERATIONS.............. 7.36 6.19 8.60 4.01
----------------- ----------------- ----------------- -----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income..... (0.05) (0.29) (0.29) --
----------------- ----------------- ----------------- -----------------
NET ASSET VALUE AT END OF
PERIOD.................. $56.77 $55.05 $56.74 $51.81
================= ================= ================= =================
TOTAL RETURN***........... 14.89% 12.64% 17.80% 8.39%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
omitted)................ $8,516 $8,258 $5,674 $12,953
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.................. 0.50%**** 0.50%**** 0.50%**** 0.50%****
Net Investment Income..... 0.35%**** 1.14%**** 1.65%**** -0.13%****
Portfolio Turnover
Rate+................... 59% 13% 18% 18%
<Caption>
RYDEX S&P
EQUAL WEIGHT
UTILITIES
ETF
-----------------
FOR THE PERIOD
NOVEMBER 1, 2006*
THROUGH
APRIL 30, 2007
(UNAUDITED)
-----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD..... $54.91
-----------------
Net Investment
Income/(Loss)**......... 0.75
Net Realized and
Unrealized Gain on
Investments**........... 7.97
-----------------
TOTAL FROM INVESTMENT
OPERATIONS.............. 8.72
-----------------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income..... (0.56)
-----------------
NET ASSET VALUE AT END OF
PERIOD.................. $63.07
=================
TOTAL RETURN***........... 15.96%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
omitted)................ $9,460
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.................. 0.50%****
Net Investment Income..... 2.58%****
Portfolio Turnover
Rate+................... 9%
</Table>
* The Fund commenced operations on November 1, 2006.
** Based on average shares outstanding.
*** Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of
all dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total investment
return calculated for a period of less than one year is not annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 82
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) April 30, 2007
- --------------------------------------------------------------------------------
1. ORGANIZATION
Rydex ETF Trust (the "Trust") is an open-end, management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act"). The Trust was organized as a Delaware statutory trust on November 22,
2002. The Trust currently consists of seventeen series: Rydex S&P Equal Weight
ETF, Rydex Russell Top 50 ETF, Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure
Growth ETF, Rydex S&P MidCap 400 Pure Value ETF, Rydex S&P MidCap 400 Pure
Growth ETF, Rydex S&P SmallCap 600 Pure Value ETF, Rydex S&P SmallCap 600 Pure
Growth ETF, Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal
Weight Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal
Weight Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal
Weight Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal
Weight Technology ETF and Rydex S&P Equal Weight Utilities ETF (each a "Fund"
and collectively, the "Funds"). Rydex S&P Equal Weight ETF commenced operations
on April 24, 2003. Rydex Russell Top 50 ETF commenced operations on May 4, 2005.
Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure Growth ETF, Rydex S&P MidCap
400 Pure Value ETF, Rydex S&P MidCap 400 Pure Growth ETF, Rydex S&P SmallCap 600
Pure Value ETF and Rydex S&P SmallCap 600 Pure Growth ETF commenced operations
on March 1, 2006. Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P
Equal Weight Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P
Equal Weight Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P
Equal Weight Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P
Equal Weight Technology ETF and Rydex S&P Equal Weight Utilities ETF commenced
operations on November 1, 2006.
The Funds' investment objective is to provide investment results that correspond
generally to the performance, before fees and expenses, of an index representing
publicly traded equity securities (the "Underlying Index"). Rydex S&P Equal
Weight ETF tracks the S&P 500 Equal Weight Total Return Index. Rydex Russell Top
50 ETF tracks the Russell Top 50(TM) Index. Rydex S&P 500 Pure Value ETF tracks
the S&P 500/Citigroup Pure Value Index, the Rydex S&P 500 Pure Growth ETF tracks
the S&P 500/Citigroup Pure Growth Index, the Rydex S&P MidCap 400 Pure Value ETF
tracks the S&P MidCap 400/Citigroup Pure Value Index, the Rydex S&P MidCap 400
Pure Growth ETF tracks the S&P MidCap 400/Citigroup Pure Growth Index, the Rydex
S&P SmallCap 600 Pure Value ETF tracks the S&P SmallCap 600/Citigroup Pure Value
Index, the Rydex S&P SmallCap 600 Pure Growth ETF tracks the S&P SmallCap
600/Citigroup Pure Growth Index. Rydex S&P Equal Weight Consumer Discretionary
ETF tracks the S&P Equal Weight Index Consumer Discretionary, the Rydex S&P
Equal Weight Consumer Staples ETF tracks the S&P Equal Weight Index Consumer
Staples, the Rydex S&P Equal Weight Energy ETF tracks the S&P Equal Weight Index
Energy, the Rydex S&P Equal Weight Financials ETF tracks the S&P Equal Weight
Index Financials, the Rydex S&P Equal Weight Health Care ETF tracks the S&P
Equal Weight Index Health Care, the Rydex S&P Equal Weight Industrials ETF
tracks the S&P Equal Weight Index Industrials, the Rydex S&P Equal Weight
Materials ETF tracks the S&P Equal Weight Index Materials, the Rydex S&P Equal
Weight Technology ETF tracks the S&P Equal Weight Index Information Technology
and the Rydex S&P Equal Weight Utilities ETF tracks the S&P Equal Weight Index
Telecommunication Services & Utilities. The Funds seek to achieve their
objective by investing in common stocks that comprise the Underlying Index. The
Funds use a "replication" strategy to track the Underlying Index. "Replication"
refers to investing in substantially all of the securities in the Underlying
Index in approximately the same proportions as in the Underlying Index.
The Funds operate as index funds and are not actively managed. Adverse
performance of a security in the Funds' portfolio will ordinarily not result in
the elimination of the security from the Funds' portfolio.
The Funds issue and redeem shares on a continuous basis, at net asset value,
only in aggregations of 50,000 shares called a "Creation Unit". Creation Units
are issued and redeemed principally in-kind for securities included in the
Underlying Index.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosures at the date of the financial statements and
accompanying notes and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Management believes that the
estimates utilized in preparing the Funds' financial statements are reasonable
and prudent; however, actual results could differ from these estimates.
A. SECURITY VALUATION
Securities listed on a domestic securities exchange are valued based on the last
sale price as of the close of regular trading hours on the New York Stock
Exchange or, in the absence of recorded sales, are valued at the most recent bid
price. Securities for which the
SEMI-ANNUAL REPORT 83
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
primary market is the National Association of Securities Dealers Automated
Quotations National Market System ("NASDAQ") are valued at the NASDAQ Official
Closing Price. The Funds invest in money market mutual funds, which are valued
at their NAV.
Securities, for which market quotations are not readily available, including
investments that are subject to limitations as to their sale, are valued at fair
value as determined in good faith by the Advisor in accordance with procedures
adopted by the Board of Trustees. In determining fair value, consideration is
given to market conditions, relative benchmarks and other financial data.
On September 15, 2006, the Financial Accounting Standards Board ("FASB")
released Statement of Financial Accounting Standard No. 157 Fair Value
Measurement ("FAS 157") which provided enhanced guidance for using fair value to
measure assets and liabilities. The standard requires companies to provide
expanded information about the assets and liabilities measured at fair value and
the potential effect of these fair valuations on an entity's financial
performance. The standard does not expand the use of fair value in any new
circumstances, but provides clarification on acceptable fair valuation methods
and applications. Adoption of FAS 157 is required for fiscal years beginning
after November 15, 2007. The standard is not expected to materially impact the
Funds' financial statements.
B. SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are recorded on the trade date. Realized gains and losses
from portfolio fund transactions are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date, net of foreign tax
withholdings. Interest income is recorded on the accrual basis.
C. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with financial institutions. The
Funds follows certain procedures designed to minimize the risks inherent in such
agreements. These procedures include effecting repurchase transactions only with
large, well-capitalized and well-established financial institutions whose
condition will be continually monitored by Rydex Global Advisors, which acts as
the Funds' investment advisor (the "Advisor"). In addition, the value of the
collateral underlying the repurchase agreement will always be at least equal to
the repurchase price, including any accrued interest earned on the repurchase
agreement. In the event of a default or bankruptcy by a selling financial
institution, the Funds will seek to liquidate such collateral. However, the
exercising of the Funds right to liquidate such collateral could involve certain
costs or delays and, to the extent that proceeds from any sale upon a default of
the obligation to repurchase were less than the repurchase price, the Funds
could suffer a loss. It is the current policy of the Funds not to invest in
repurchase agreements that do not mature within seven days if any such
investment, together with any other illiquid assets held by the Funds, amounts
to more than 15% of the Funds net assets. The investments of the Funds in
repurchase agreements, at times, may be substantial when, in the view of the
Advisor, liquidity or other considerations so warrant. For the six months ended
April 30, 2007, the Funds had not engaged in repurchase transactions.
D. FEDERAL INCOME TAXES
The Funds policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and distribute all of the taxable
income to the shareholders within the allowable time limits. Therefore, no
provision for Federal income taxes is required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for in-kind redemptions, income reclassifications from real
estate investment trusts ("REITs") and losses deferred due to wash sales.
For the six months ended April 30, 2007, the Funds realized net capital gains
resulting from in-kind redemptions and other transactions. Because gains from
in-kind redemptions are not taxable to the Funds, and are not distributed to
existing Fund shareholders, the gains are reclassified from accumulated net
realized gains to paid-in-capital at the end of the Funds tax year. These
reclassifications have no effect on net assets or net asset value per share. The
in-kind gains for the six months ended April 30, 2007 are disclosed in the Funds
Statement of Operations.
SEMI-ANNUAL REPORT 84
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
At April 30, 2007, the Funds had a capital loss carryforwards which may be
utilized to offset any net realized capital gains expiring October 31:
<Table>
<Caption>
2010 2013 2014
-------- ---------- -----------
Rydex S&P Equal Weight ETF.................................. $272,282 $5,596,230 $10,726,815
Rydex Russell Top 50 ETF.................................... -- 88,468 675,404
Rydex S&P 500 Pure Value ETF................................ -- -- 44,302
Rydex S&P 500 Pure Growth ETF............................... -- -- 28,988
Rydex S&P MidCap 400 Pure Value ETF......................... -- -- 94,708
Rydex S&P MidCap 400 Pure Growth ETF........................ -- -- --
Rydex S&P SmallCap 600 Pure Value ETF....................... -- -- 16,696
Rydex S&P SmallCap 600 Pure Growth ETF...................... -- -- 27,599
Rydex S&P Equal Weight Consumer Discretionary ETF........... -- -- --
Rydex S&P Equal Weight Consumer Staples ETF................. -- -- --
Rydex S&P Equal Weight Energy ETF........................... -- -- --
Rydex S&P Equal Weight Financials ETF....................... -- -- --
Rydex S&P Equal Weight Health Care ETF...................... -- -- --
Rydex S&P Equal Weight Industrials ETF...................... -- -- --
Rydex S&P Equal Weight Materials ETF........................ -- -- --
Rydex S&P Equal Weight Technology ETF....................... -- -- --
Rydex S&P Equal Weight Utilities ETF........................ -- -- --
</Table>
On July 13, 2006, the FASB released FASB Interpretation No. 48 Accounting for
Uncertainty in Income Taxes ("FIN 48"). FIN 48 provides guidance for how
uncertain tax positions should be recognized, measured, presented and disclosed
in the financial statements. FIN 48 requires the evaluation of tax positions
taken or expected to be taken in the course of preparing the Fund's tax returns
to determine whether the tax positions are "more-likely- than-not" of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold would be recorded as a tax benefit or expense in
the current year. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of the
effective date. Recent SEC guidance allows implementing FIN 48 in fund net asset
value calculations as late as a fund's last net asset value calculation in the
first required financial statement reporting period. As a result, the Funds will
incorporate FIN 48 in their semi-annual report on April 30, 2008. At this time,
management is evaluating the implications of FIN 48 and its impact on the
financial statements has not yet been determined.
E. DIVIDENDS AND DISTRIBUTIONS
The Funds declare and pay dividends from net investment income and distribute
from net realized capital gains at least annually.
F. RISK AND UNCERTAINTIES
The Trust invests in various investments which are exposed to risk, such as
market risk. Due to the level of risk associated with certain investments it is
at least reasonably possible that changes in the values of investment securities
will occur in the near term and that such changes could materially affect
amounts reported in the financial statements. The Rydex Russell Top 50 ETF and
Rydex S&P Equal Weight Sector ETFs are non-diversified funds, subjecting them to
a greater risk than funds that are diversified.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor determines the composition of the portfolio of securities that must
be delivered in exchange for the issuance of Creation Units and periodically
adjusts the composition of the portfolio of the Funds to conform to changes in
the composition of
SEMI-ANNUAL REPORT 85
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
the relevant index. For these services, the Advisor receives an advisory fee at
the annual rate shown below of the average daily net assets of the Funds.
<Table>
<Caption>
ADVISORY FEE
------------
Rydex S&P Equal Weight ETF.................................. 0.40%
Rydex Russell Top 50 ETF.................................... 0.20%
Rydex S&P 500 Pure Value ETF................................ 0.35%
Rydex S&P 500 Pure Growth ETF............................... 0.35%
Rydex S&P MidCap 400 Pure Value ETF......................... 0.35%
Rydex S&P MidCap 400 Pure Growth ETF........................ 0.35%
Rydex S&P SmallCap 600 Pure Value ETF....................... 0.35%
Rydex S&P SmallCap 600 Pure Growth ETF...................... 0.35%
Rydex S&P Equal Weight Consumer Discretionary ETF........... 0.50%
Rydex S&P Equal Weight Consumer Staples ETF................. 0.50%
Rydex S&P Equal Weight Energy ETF........................... 0.50%
Rydex S&P Equal Weight Financials ETF....................... 0.50%
Rydex S&P Equal Weight Health Care ETF...................... 0.50%
Rydex S&P Equal Weight Industrials ETF...................... 0.50%
Rydex S&P Equal Weight Materials ETF........................ 0.50%
Rydex S&P Equal Weight Technology ETF....................... 0.50%
Rydex S&P Equal Weight Utilities ETF........................ 0.50%
</Table>
The Advisor pays all expenses of the Funds, including the cost of transfer
agency, custody, fund administration, legal, audit and other services, except:
interest, taxes, distribution fees or expenses and extraordinary expenses.
Under an Administration agreement, State Street Bank and Trust Company (the
"Administrator") provides various administrative and accounting services for the
maintenance and operations of the Funds. Under a Custodian Agreement with the
Trust, the Administrator maintains cash, securities and other assets of the
Trust and the Funds in separate accounts for each fund, keeps all necessary
accounts and records, and provides other services. The Administrator is
required, upon the order of the Trust, to deliver securities held by the
Custodian and to make payments for securities purchased by the Trust for the
Funds. Pursuant to a Transfer Agency and Service Agreement with the Trust, the
Administrator acts as a transfer agent for the Trust's authorized and issued
shares of beneficial interest, and as dividend disbursing agent of the Trust.
The Advisor compensates the Administrator directly for the foregoing services.
The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to
pay distribution fees to Rydex Distributors, Inc. (the "Distributor") and other
firms that provide distribution services ("Service Providers"). If a Service
Provider provides distribution services, the Funds will pay distribution fees to
the Distributor at an annual rate not to exceed 0.25% of average daily net
assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor will, in turn,
pay the Service Provider out of its fees. No such fee is currently charged to
the Funds.
4. CAPITAL
At April 30, 2007, there were an unlimited number of no par value shares of
beneficial interest authorized. There is a minimum transaction fee per
transaction to those persons purchasing or redeeming Creation Units. An
additional charge of up to three times the standard transaction fee may be
imposed for purchases and redemptions effected outside the National Securities
Clearing Corporation usual clearing process or for cash. Such transactions are
generally permitted on an in-kind basis, with a balancing cash
SEMI-ANNUAL REPORT 86
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
component to equate the transaction to the net asset value per unit of the Fund
on the transaction date. The minimum transaction fees are:
<Table>
<Caption>
MINIMUM
TRANSACTION FEE
---------------
Rydex S&P Equal Weight ETF.................................. $2,000
Rydex Russell Top 50 ETF.................................... 500
Rydex S&P 500 Pure Value ETF................................ 1,000
Rydex S&P 500 Pure Growth ETF............................... 1,000
Rydex S&P MidCap 400 Pure Value ETF......................... 750
Rydex S&P MidCap 400 Pure Growth ETF........................ 750
Rydex S&P SmallCap 600 Pure Value ETF....................... 1,000
Rydex S&P SmallCap 600 Pure Growth ETF...................... 1,000
Rydex S&P Equal Weight Consumer Discretionary ETF........... 750
Rydex S&P Equal Weight Consumer Staples ETF................. 500
Rydex S&P Equal Weight Energy ETF........................... 500
Rydex S&P Equal Weight Financials ETF....................... 750
Rydex S&P Equal Weight Health Care ETF...................... 500
Rydex S&P Equal Weight Industrials ETF...................... 500
Rydex S&P Equal Weight Materials ETF........................ 500
Rydex S&P Equal Weight Technology ETF....................... 750
Rydex S&P Equal Weight Utilities ETF........................ 500
</Table>
5. INVESTMENT TRANSACTIONS
For the six months ended April 30, 2007 the Funds had in-kind contributions and
in-kind redemptions as follows:
<Table>
<Caption>
SUBSCRIPTIONS REDEMPTIONS
------------- ------------
Rydex S&P Equal Weight ETF.................................. $475,053,289 $137,509,820
Rydex Russell Top 50 ETF.................................... 268,864,109 123,898,183
Rydex S&P 500 Pure Value ETF................................ 19,271,797 --
Rydex S&P 500 Pure Growth ETF............................... 31,493,993 --
Rydex S&P MidCap 400 Pure Value ETF......................... 14,763,237 8,681,226
Rydex S&P MidCap 400 Pure Growth ETF........................ 2,709,257 5,411,275
Rydex S&P SmallCap 600 Pure Value ETF....................... 16,864,336 --
Rydex S&P SmallCap 600 Pure Growth ETF...................... 2,092,319 --
Rydex S&P Equal Weight Consumer Discretionary ETF........... 54,574,401 --
Rydex S&P Equal Weight Consumer Staples ETF................. 7,224,944 --
Rydex S&P Equal Weight Energy ETF........................... 7,252,144 --
Rydex S&P Equal Weight Financials ETF....................... 29,515,781 24,978,240
Rydex S&P Equal Weight Health Care ETF...................... 7,419,930 --
Rydex S&P Equal Weight Industrials ETF...................... 7,372,804 --
Rydex S&P Equal Weight Materials ETF........................ 20,236,584 15,970,615
Rydex S&P Equal Weight Technology ETF....................... 12,157,185 --
Rydex S&P Equal Weight Utilities ETF........................ 13,834,457 5,707,091
</Table>
Purchases and sales of investment securities (excluding short-term investments,
U.S. government and government agency obligations) for the Funds were as
follows:
<Table>
<Caption>
PURCHASES SALES
------------ ------------
Rydex S&P Equal Weight ETF.................................. $222,285,144 $224,851,539
Rydex Russell Top 50 ETF.................................... 5,823,019 9,164,760
Rydex S&P 500 Pure Value ETF................................ 6,942,962 6,678,254
Rydex S&P 500 Pure Growth ETF............................... 7,001,120 7,729,156
Rydex S&P MidCap 400 Pure Value ETF......................... 7,144,761 6,706,642
Rydex S&P MidCap 400 Pure Growth ETF........................ 9,934,472 9,225,049
Rydex S&P SmallCap 600 Pure Value ETF....................... 5,400,759 5,375,606
Rydex S&P SmallCap 600 Pure Growth ETF...................... 3,115,557 2,760,677
Rydex S&P Equal Weight Consumer Discretionary ETF........... 3,600,264 3,521,351
Rydex S&P Equal Weight Consumer Staples ETF................. 720,447 668,669
Rydex S&P Equal Weight Energy ETF........................... 1,063,407 1,166,915
Rydex S&P Equal Weight Financials ETF....................... 1,038,144 1,018,675
Rydex S&P Equal Weight Health Care ETF...................... 4,685,832 4,620,994
Rydex S&P Equal Weight Industrials ETF...................... 1,001,842 1,043,701
Rydex S&P Equal Weight Materials ETF........................ 1,354,331 1,467,053
Rydex S&P Equal Weight Technology ETF....................... 1,440,047 1,459,424
Rydex S&P Equal Weight Utilities ETF........................ 745,029 716,757
</Table>
SEMI-ANNUAL REPORT 87
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
At April 30, 2007, gross unrealized appreciation of investments for the Funds
were as follows:
<Table>
<Caption>
GROSS GROSS NET UNREALIZED
IDENTIFIED UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
-------------- ------------ ------------ --------------
Rydex S&P Equal Weight ETF.................................. $2,005,100,957 $315,386,352 $36,760,493 $278,625,859
Rydex Russell Top 50 ETF.................................... 510,045,703 32,887,175 4,137,456 28,749,719
Rydex S&P 500 Pure Value ETF................................ 39,988,935 3,650,545 298,458 3,352,087
Rydex S&P 500 Pure Growth ETF............................... 48,907,658 3,374,977 804,418 2,570,559
Rydex S&P MidCap 400 Pure Value ETF......................... 21,669,560 1,190,163 538,200 651,963
Rydex S&P MidCap 400 Pure Growth ETF........................ 21,485,983 2,086,070 1,180,841 905,229
Rydex S&P SmallCap 600 Pure Value ETF....................... 22,837,848 1,724,901 770,543 954,358
Rydex S&P SmallCap 600 Pure Growth ETF...................... 9,959,857 1,091,952 470,865 621,087
Rydex S&P Equal Weight Consumer Discretionary ETF........... 54,930,736 2,717,827 1,186,693 1,531,134
Rydex S&P Equal Weight Consumer Staples ETF................. 7,333,830 665,912 146,391 519,521
Rydex S&P Equal Weight Energy ETF........................... 7,301,525 1,106,751 14,897 1,091,854
Rydex S&P Equal Weight Financials ETF....................... 5,003,851 249,216 74,097 175,119
Rydex S&P Equal Weight Health Care ETF...................... 7,561,615 1,001,573 47,320 954,253
Rydex S&P Equal Weight Industrials ETF...................... 7,433,231 879,461 56,031 823,430
Rydex S&P Equal Weight Materials ETF........................ 5,366,336 407,811 101,419 306,392
Rydex S&P Equal Weight Technology ETF....................... 12,214,429 945,500 213,501 731,999
Rydex S&P Equal Weight Utilities ETF........................ 8,393,481 1,059,665 5,099 1,054,566
</Table>
SEMI-ANNUAL REPORT 88
SUPPLEMENTAL INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's website at
http://www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if
applicable, during the most recent 12-month period ended June 30, is also
available, without charge and upon request, by (i) calling 1-800-820-0888; or
accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Trust's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
SEMI-ANNUAL REPORT 89
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling
1-800-820-0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
<Table>
<Caption>
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE
YEAR OF BIRTH (YEAR BEGAN) NUMBER OF FUNDS OVERSEEN
- ---------------------------- ------------------------------------------------------- ----------------------------
CARL G. VERBONCOEUR* Rydex Series Funds - 2004 140
Trustee, President (1952) Rydex Variable Trust - 2004
Rydex Dynamic Funds - 2004
Rydex ETF Trust - 2004
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Executive Officer and
Treasurer of Rydex Specialized Products, LLC (2005 to present); Chief Executive
Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to present);
Executive Vice President of Rydex Investments (2000 to 2003)
---------------
<Table>
MICHAEL P. BYRUM* Rydex Series Funds - 2005 140
Trustee, Vice President Rydex Variable Trust - 2005
(1970) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Secretary of Rydex Specialized
Products, LLC (2005 to present); Vice President of Rydex Series Funds (1997 to
present); Vice President of Rydex Variable Trust (1998 to present); Vice
President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex ETF
Trust (2002 to present); President and Trustee of Rydex Capital Partners SPhinX
Fund (2003 to 2006); President of Rydex Investments (2004 to present); Chief
Operating Officer of Rydex Investments and Rydex Distributors, Inc. (2003 to
2004)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
<Table>
<Caption>
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE
YEAR OF BIRTH (YEAR BEGAN) NUMBER OF FUNDS OVERSEEN
- ---------------------------- ------------------------------------------------------- ----------------------------
JOHN O. DEMARET Rydex Series Funds - 1997 132
Trustee, Chairman of the Rydex Variable Trust - 1998
Board (1940) Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
---------------
<Table>
COREY A. COLEHOUR Rydex Series Funds - 1993 132
Trustee (1945) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2006-present); Owner and
President of Schield Management Company, registered investment adviser (2005 to
2006); Senior Vice President of Marketing and Co-Owner of Schield Management
Company, registered investment adviser (1985 to 2005)
---------------
<Table>
J. KENNETH DALTON Rydex Series Funds - 1995 132
Trustee (1941) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Mortgage Banking Consultant and
Investor, The Dalton Group
---------------
<Table>
WERNER E. KELLER Rydex Series Funds - 2005 132
Trustee (1940) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired (2001 to present);
Chairman, Centurion Capital Management (1991 to 2001)
---------------
<Table>
THOMAS F. LYDON, JR. Rydex Series Funds - 2005 132
Trustee (1960) Rydex Variable Trust - 2005
Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
Investments
---------------
<Table>
PATRICK T. MCCARVILLE Rydex Series Funds - 1997 132
Trustee (1942) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
---------------
SEMI-ANNUAL REPORT 90
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES (CONT.)
<Table>
LENGTH OF SERVICE
NAME, POSITION AND AS TRUSTEE
YEAR OF BIRTH (YEAR BEGAN) NUMBER OF FUNDS OVERSEEN
- ---------------------------- ------------------------------------------------------- ----------------------------
ROGER SOMERS Rydex Series Funds - 1993 132
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
<Table>
<Caption>
NAME, POSITION AND
YEAR OF BIRTH PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS
- -------------------------------------------------------- --------------------------------------------------------
NICK BONOS* Chief Financial Officer of Rydex Specialized Products,
Vice President and Treasurer (1963) LLC (2005 to present); Vice President and Treasurer of
Rydex Series Funds, Rydex Variable Trust, Rydex Dynamic
Funds, and Rydex ETF Trust (2003 to present); Senior
Vice President of Rydex Investments (2003 to present);
Vice President and Treasurer of Rydex Capital Partners
SPhinX Fund (2003 to 2006); Vice President of Accounting
of Rydex Investments (2000 to 2003)
JOANNA M. HAIGNEY* Chief Compliance Officer of Rydex Series Funds, Rydex
Chief Compliance Officer and Secretary (1966) Variable Trust, and Rydex Dynamic Funds (2004 to
present); Secretary of Rydex Series Funds, Rydex
Variable Trust, and Rydex Dynamic Funds (2000 to
present); Secretary of Rydex ETF Trust (2002 to
present); Vice President of Compliance of Rydex
Investments (2000 to present); Secretary of Rydex
Capital Partners SPhinX Fund (2003 to 2006)
JOSEPH ARRUDA* Assistant Treasurer of Rydex Series Funds, Rydex
Assistant Treasurer (1966) Variable Trust, Rydex Dynamic Funds, Rydex ETF Trust
(2006); Vice President of Rydex Investments (2004 to
present); Director of Accounting of Rydex Investments
(2003 to 2004); Vice President of Mutual Funds, State
Street Bank & Trust (2000 to 2003)
PAULA BILLOS* Controller of Rydex Series Funds, Rydex Variable Trust,
Controller (1974) Rydex Dynamic Funds, Rydex ETF Trust (2006); Director of
Fund Administration of Rydex Investments (2001 to
present)
</Table>
* Officers of the Fund are deemed to be "interested persons" of the Trust,
within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as this person
is affiliated with the Advisor.
[RYDEX INVESTMENTS LOGO] [GRAPHIC]
9601 Blackwell Road o Suite 500 o Rockville, MD 20850
www.rydexinvestments.com o 800.820.0888
ETF-SEMI-ANN-0407X1007
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based on their evaluation on July 5, 2007, the President (principal
executive officer) and the Treasurer (principal financial officer) of the Rydex
ETF Trust (the "Trust") believe that there were no significant deficiencies in
the design or operation of the internal controls of the Trust or Rydex Global
Advisors ("RGA"), the investment advisor and manager of the Trust, and State
Street Bank and Trust Company (the "Administrator"), the administrator of the
Trust, or Rydex Distributors, Inc. ("RD"), which acts as distributor for the
Trust, including disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940) which would have adversely affected
the ability of the Trust, the Administrator or RGA on behalf of the Trust, to
record, process, summarize, and report the subject matter contained in this
Report, and the President and Treasurer of the Trust have identified no material
weaknesses in such internal controls on behalf of the Trust.
There was no fraud, whether or not material, involving officers or employees of
RGA, the Administrator, RD or the Trust who have a significant role in the
Trust's internal controls, including disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come
to the attention of the advisor or the officers of the Trust, including its
President and Treasurer.
(b) There were no significant changes in the Trust's and RGA's internal controls
over financial reporting, including disclosure controls and procedures (as
defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred
during the second fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is
attached.
(a)(2) Separate certifications by the President (principal executive officer)
and Treasurer (principal financial officer) of the registrant as required by
Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.
(b) A certification by the registrant's President (principal executive officer)
and Treasurer (principal financial officer) as required by Rule 30a-2(b) under
the Act (17 CFR 270.30a-2(b)) is attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Rydex ETF Trust
--------------------------------------------------------------------
By (Signature and Title)* /s/ Carl G. Verboncoeur
---------------------------------------------------------
Carl G. Verboncoeur, President
Date July 5, 2007
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Carl G. Verboncoeur
-------------------------------------------------------
Carl G. Verboncoeur, President
Date July 5, 2007
----------------------------------------------------------------------------
By (Signature and Title)* /s/ Nick Bonos
-------------------------------------------------------
Nick Bonos, Vice President and Treasurer
Date July 5, 2007
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.