UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811- 21261
Rydex ETF Trust
(Exact name of registrant as specified in charter)
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Address of principal executive offices) (Zip code)
Carl G. Verboncoeur
Rydex ETF Trust
9601 Blackwell Road, Suite 500
Rockville, Maryland 20850
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-301-296-5100
Date of fiscal year end: October 31, 2008
Date of reporting period: April 30, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
April 30, 2008
RYDEX ETF TRUST
SEMI-ANNUAL REPORT
RYDEX S&P EQUAL WEIGHT ETF
RYDEX RUSSELL TOP 50 ETF
[GRAPHIC] [RYDEX INVESTMENTS LOGO]
SEMI-ANNUAL REPORT 1
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<Table>
LETTER TO OUR SHAREHOLDERS............................................... 2
FEES & EXPENSES.......................................................... 4
PORTFOLIO SUMMARY........................................................ 5
SCHEDULE OF INVESTMENTS.................................................. 7
STATEMENTS OF ASSETS AND LIABILITIES..................................... 16
STATEMENTS OF OPERATIONS................................................. 17
STATEMENTS OF CHANGES IN NET ASSETS...................................... 18
FINANCIAL HIGHLIGHTS..................................................... 19
NOTES TO FINANCIAL STATEMENTS............................................ 21
SUPPLEMENTAL INFORMATION................................................. 25
</Table>
SEMI-ANNUAL REPORT 2
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER,
Rydex is a proud participant in the ETF space, having $6.1 million in ETF
assets, 31 exchange traded products and plans to introduce many more in the
future. In the last six months, we've launched six new exchange traded products
and in the past year our assets have grown more than 27%.
Because of their cost-effectiveness, transparency, convenience and
accessibility, ETFs can be a beneficial part of most investor portfolios.
However, lack of education about the products can be a barrier for many
investors. For example, a Rydex survey of individual mutual fund investors in
2007 found that more than half (53%) of investors do not know the difference
between a mutual fund and ETF and 38% don't know what an ETF is.(1) Rydex
believes that investors need to be knowledgeable about their investment
selections -- whether they choose ETFs or any other investment option. That's
why we created ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help
boost ETF knowledge for both advisors and their clients. ETF Essentials presents
information in simple, understandable language and is available via podcast
(audio downloads), print and online. It's free and can be requested on the Rydex
web site (www.rydexinvestments.com).
MARKET RECAP
The six-month period ending April 30 was a momentous one in many respects. The
U.S. financial system teetered on the brink of collapse as the ongoing crisis in
the nation's credit markets seemed to threaten the solvency of many major Wall
Street institutions. Indeed, financial market turmoil, the magnitude of which
had not been seen in decades, led to the dramatic collapse of Bear Stearns, a
powerhouse investment bank that traced its origins back to the 1920s and had
successfully weathered the Great Depression.
References to the Great Depression are appropriate since many of the emergency
actions taken by the Fed to keep the financial system afloat during this period
had their origins in that earlier crisis. The acceptance of mortgage-backed debt
as collateral, and lending to non-depository institutions in particular are
policies taken straight from the 1930s.
Most financial crises lead to the demise of at least one major financial
institution -- think of Penn Central, Continental Illinois and Long Term Capital
Management -- and this one was no exception. If there is good news here, it is
that collapses, such as Bear Stearns in March, usually signify the beginning of
the end of a financial panic. True to form, once it was clear that other major
financial institutions did not face solvency issues along the lines of Bear
Stearns, stocks soared in a classic relief rally.
Although there was a perceptible shift in sentiment at the tail end of the
period, it was not enough to reverse what was a difficult period for stocks. The
bellwether S&P 500 fell nearly 10% as investors ran to the safety of U.S.
Treasury securities, pulling long-term interest rates to five-year lows in the
process. The Fed slashed interest rates at the fastest pace in history, dropping
the widely watched Fed Funds target rate to 2.00% from 4.50% in five sweeping
moves. In this crisis environment the Fed, in conjunction with other central
banks, continuously pumped hundreds of billions of dollars of liquidity into the
global financial system. In fact, government at all levels was in full crisis
prevention mode. Congress and the Bush administration forged a $168 billion
fiscal stimulus plan with lightning speed and the nation's home lending
industry, in the form of Fannie Mae and Freddie Mac, was restructured to help
relieve pressure on the beleaguered housing market.
Risk exposures of all types were sold indiscriminately, hitting financials,
technology and consumer discretionary stocks particularly hard. Aggravated by a
weakening job market, falling housing values and rising inflation, consumer
sentiment levels hit multi-year lows. With all the ingredients for a recession
firmly in place -- shrinking payrolls, declining retail sales, curtailed capital
spending plans and falling wealth levels -- economic activity essentially
crawled to a halt. The cheap U.S. dollar fueled a boom in exports, which kept
economic growth just barely in the black.
One outgrowth of the dollar's descent in foreign exchange markets was a
corresponding rise in commodity prices. The speculative boom in commodity prices
reached a frenzy, putting commodity index levels at 10-year highs. Much of that
was driven by oil, the price of which rose in excess of 20% and broke the
$100/bbl. level in early March.
- ----------
(1) Rydex Investments in conjunction with e-Rewards Market Research
conducted this survey of individual investors in July 2007. The survey was
conducted with 500 individual mutual fund investors. All participants had
investable assets of more than $100K, with 150 of the participants having
investable assets of more than $500K. e-Rewards Market Research is not
affiliated with Rydex Investments. Although Rydex Investments believes the
information from this organization is correct, it cannot, and does not,
guarantee or warrant the completeness or suitability of this information.
SEMI-ANNUAL REPORT 3
- --------------------------------------------------------------------------------
An implicit part of the sentiment shift observed at the end of the quarter was
the notion that the Fed is no longer part of the problem but rather part of the
solution. In retrospect it appears that the Fed's policy responses throughout
the crisis have been effective and appropriate.
We appreciate the trust you have placed in our firm's quality and integrity by
investing with us. It is our goal to continue to offer you innovative ETF
choices to meet your investment needs.
Sincerely,
/s/ DAVID C. REILLY, CFA
David Reilly, CFA
Director of Portfolio Strategies
All sources: Bloomberg
SEMI-ANNUAL REPORT 4
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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, 2007 and held for the six months ended April 30, 2008.
ACTUAL EXPENSES
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you incurred over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
table under the heading entitled "Expenses Paid During the Six-Month Period" to
estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second table below provides information about hypothetical account values
and hypothetical expenses based on a Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not a Fund's actual
return. Thus, you should not use the hypothetical account values and expenses to
estimate the actual ending account balance or your expenses for the period.
Rather, these figures are provided to enable you to compare the ongoing costs of
investing in a Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as creation
and redemption fees, or brokerage charges. Therefore, the second table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES PAID
VALUE VALUE DURING PERIOD*
11/1/2007 4/30/2008 11/1/07 TO 4/30/08
--------- --------- ------------------
ACTUAL
Rydex S&P Equal Weight ETF............................ $1,000.00 $ 901.40 $1.89
Rydex Russell Top 50 ETF.............................. $1,000.00 $ 893.70 $0.94
HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES)
Rydex S&P Equal Weight ETF............................ $1,000.00 $1,022.87 $2.01
Rydex Russell Top 50 ETF.............................. $1,000.00 $1,023.87 $1.01
</Table>
- --------
* Expenses are equal to the Fund's annualized expense ratio of 0.40% and
0.20% respectively, multiplied by the average account value of the period,
multiplied by days in the period, divided by 366.
SEMI-ANNUAL REPORT 5
RYDEX S&P EQUAL WEIGHT ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
BEAR STEARNS COS., INC. 0.35%
SAFECO CORP. 0.29%
BROADCOM CORP. -- CLASS A 0.29%
FORD MOTOR CO. 0.28%
SPRINT NEXTEL CORP. 0.26%
GOOGLE, INC. -- CLASS A 0.26%
SANDISK CORP. 0.25%
UNITED STATES STEEL CORP. 0.25%
APPLE, INC. 0.25%
NATIONAL-OILWELL VARCO, INC. 0.25%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 18.10
Consumer Discretionary 16.77
Information Technology 14.49
Industrials 11.48
Health Care 9.97
Energy 7.81
Consumer Staples 7.70
Utilities 6.19
Materials 5.65
Telecommunication Services 1.84
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 6
RYDEX RUSSELL TOP 50 ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
EXXON MOBIL CORP. 8.86%
GENERAL ELECTRIC CO. 5.68%
AT&T, INC. 4.03%
MICROSOFT CORP. 3.96%
PROCTER & GAMBLE CO. 3.57%
CHEVRON CORP. 3.49%
JOHNSON & JOHNSON 3.28%
BANK OF AMERICA CORP. 2.81%
INTERNATIONAL BUSINESS MACHINES CORP. 2.78%
JPMORGAN CHASE & CO. 2.75%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Information Technology 21.38
Energy 16.80
Financials 16.09
Health Care 12.73
Consumer Staples 12.68
Industrials 9.28
Telecommunication Services 6.32
Consumer Discretionary 4.72
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Sector Allocations are expressed as a percentage of the Fund's investments
market value. These percentages may change over time.
SEMI-ANNUAL REPORT 7
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS 99.8%
AEROSPACE & DEFENSE 2.2%
Boeing Co. ..................................... 34,598 $2,935,986
General Dynamics Corp. ......................... 30,000 2,712,600
Goodrich Corp. ................................. 43,274 2,949,123
Honeywell International, Inc. .................. 47,279 2,808,373
L-3 Communications Holdings, Inc. .............. 23,860 2,659,197
Lockheed Martin Corp. .......................... 25,513 2,705,398
Northrop Grumman Corp. ......................... 32,505 2,391,393
Precision Castparts Corp. ...................... 26,714 3,140,498
Raytheon Co. ................................... 40,528 2,592,576
Rockwell Collins, Inc. ......................... 47,289 2,984,409
United Technologies Corp. ...................... 36,982 2,680,086
--------------
TOTAL AEROSPACE & DEFENSE 30,559,639
--------------
AIR FREIGHT & LOGISTICS 0.8%
C.H. Robinson Worldwide, Inc. .................. 46,728 2,928,911
Expeditors International of Washington, Inc. ... 59,998 2,795,307
FedEx Corp. .................................... 29,570 2,834,876
United Parcel Service, Inc. -- Class B.......... 35,540 2,573,451
--------------
TOTAL AIR FREIGHT & LOGISTICS 11,132,545
--------------
AIRLINES 0.2%
Southwest Airlines Co. ......................... 212,144 2,808,787
--------------
TOTAL AIRLINES 2,808,787
--------------
AUTO COMPONENTS 0.4%
Goodyear Tire & Rubber Co.*..................... 102,284 2,739,166
Johnson Controls, Inc. ......................... 75,647 2,667,313
--------------
TOTAL AUTO COMPONENTS 5,406,479
--------------
AUTOMOBILES 0.7%
Ford Motor Co.*................................. 462,077 3,816,756
General Motors Corp. ........................... 132,781 3,080,519
Harley-Davidson, Inc. .......................... 68,583 2,623,300
--------------
TOTAL AUTOMOBILES 9,520,575
--------------
BEVERAGES 1.5%
Anheuser-Busch Cos., Inc. ...................... 55,424 2,726,861
Brown-Forman Corp. -- Class B................... 38,374 2,610,199
Coca-Cola Co. .................................. 42,011 2,473,188
Coca-Cola Enterprises, Inc. .................... 104,435 2,349,787
Constellation Brands, Inc. -- Class A*.......... 134,146 2,462,921
Molson Coors Brewing Co. -- Class B............. 48,732 2,672,463
Pepsi Bottling Group, Inc. ..................... 75,826 2,556,094
PepsiCo, Inc. .................................. 36,051 2,470,575
--------------
TOTAL BEVERAGES 20,322,088
--------------
BIOTECHNOLOGY 1.0%
Amgen, Inc.*.................................... 64,627 2,705,932
Biogen Idec, Inc.*.............................. 43,393 2,633,521
Celgene Corp.*.................................. 44,554 2,768,586
Genzyme Corp.*.................................. 36,630 2,576,920
Gilead Sciences, Inc.*.......................... 53,289 2,758,239
--------------
TOTAL BIOTECHNOLOGY 13,443,198
--------------
BUILDING PRODUCTS 0.4%
Masco Corp. .................................... 131,831 2,400,643
Trane, Inc. .................................... 56,195 2,613,629
--------------
TOTAL BUILDING PRODUCTS 5,014,272
--------------
CAPITAL MARKETS 3.5%
American Capital Strategies, Ltd. .............. 71,348 2,265,299
Ameriprise Financial, Inc. ..................... 49,410 2,346,481
Bank of New York Mellon Corp. .................. 57,673 2,510,506
Bear Stearns Cos., Inc. ........................ 447,443 4,801,063
Charles Schwab Corp. ........................... 135,921 2,935,894
E*TRADE Financial Corp.*........................ 715,571 2,847,973
Federated Investors, Inc. -- Class B............ 64,339 2,154,070
Franklin Resources, Inc. ....................... 26,683 2,538,888
Goldman Sachs Group, Inc. ...................... 14,884 2,848,351
Janus Capital Group, Inc. ...................... 110,589 3,103,127
Legg Mason, Inc. ............................... 46,937 2,829,362
Lehman Brothers Holdings, Inc. ................. 58,759 2,599,498
Merrill Lynch & Co., Inc. ...................... 58,422 2,911,168
Morgan Stanley.................................. 56,397 2,740,894
Northern Trust Corp. ........................... 37,872 2,806,694
State Street Corp. ............................. 31,452 2,268,947
T. Rowe Price Group, Inc. ...................... 52,455 3,071,765
--------------
TOTAL CAPITAL MARKETS 47,579,980
--------------
CHEMICALS 2.6%
Air Products & Chemicals, Inc. ................. 28,498 2,805,058
Ashland, Inc. .................................. 54,682 2,899,240
Dow Chemical Co. ............................... 69,208 2,778,701
Du Pont (E.I.) de Nemours & Co. ................ 55,885 2,733,335
Eastman Chemical Co. ........................... 41,150 3,024,525
Ecolab, Inc. ................................... 58,680 2,696,933
Hercules, Inc. ................................. 137,594 2,586,767
International Flavors & Fragrances, Inc. ....... 60,112 2,741,708
Monsanto Co. ................................... 26,144 2,980,939
PPG Industries, Inc. ........................... 43,083 2,644,004
Praxair, Inc. .................................. 31,193 2,848,233
Rohm & Haas Co. ................................ 47,922 2,561,431
Sigma-Aldrich Corp. ............................ 44,375 2,530,262
--------------
TOTAL CHEMICALS 35,831,136
--------------
COMMERCIAL BANKS 2.8%
BB&T Corp. ..................................... 74,663 2,560,194
Comerica, Inc. ................................. 66,039 2,293,534
Fifth Third Bancorp............................. 112,185 2,404,125
First Horizon National Corp. ................... 153,791 1,660,943
Huntington Bancshares, Inc. .................... 235,662 2,212,866
KeyCorp......................................... 112,664 2,718,582
M&T Bank Corp. ................................. 30,500 2,843,515
Marshall & Ilsley Corp. ........................ 106,632 2,663,667
National City Corp. ............................ 254,062 1,600,591
PNC Financial Services Group, Inc. ............. 39,404 2,732,667
Regions Financial Corp. ........................ 123,168 2,699,843
SunTrust Banks, Inc. ........................... 42,699 2,380,469
U.S. Bancorp.................................... 75,215 2,549,036
Wachovia Corp. ................................. 86,980 2,535,467
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 8
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Wells Fargo & Co. .............................. 79,722 $2,371,730
Zions Bancorp................................... 52,605 2,438,242
--------------
TOTAL COMMERCIAL BANKS 38,665,471
--------------
COMMERCIAL SERVICES & SUPPLIES 1.8%
Allied Waste Industries, Inc.*.................. 252,130 3,116,327
Avery Dennison Corp. ........................... 53,760 2,590,694
Cintas Corp. ................................... 88,728 2,627,236
Equifax, Inc. .................................. 74,854 2,864,663
Monster Worldwide, Inc.*........................ 107,578 2,617,373
Pitney Bowes, Inc. ............................. 72,122 2,604,326
R.R. Donnelley & Sons Co. ...................... 88,299 2,705,481
Robert Half International, Inc. ................ 101,259 2,399,838
Waste Management, Inc. ......................... 77,169 2,785,801
--------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 24,311,739
--------------
COMMUNICATIONS EQUIPMENT 1.6%
Ciena Corp.*.................................... 87,103 2,944,952
Cisco Systems, Inc.*............................ 102,474 2,627,433
Corning, Inc. .................................. 106,810 2,852,895
JDS Uniphase Corp.*............................. 193,895 2,774,638
Juniper Networks, Inc.*......................... 104,641 2,890,184
Motorola, Inc. ................................. 277,506 2,763,960
QUALCOMM, Inc. ................................. 67,213 2,902,930
Tellabs, Inc.*.................................. 452,146 2,333,073
--------------
TOTAL COMMUNICATIONS EQUIPMENT 22,090,065
--------------
COMPUTERS & PERIPHERALS 2.2%
Apple, Inc.*.................................... 19,492 3,390,633
Dell, Inc.*..................................... 128,435 2,392,744
EMC Corp.*...................................... 178,325 2,746,205
Hewlett-Packard Co. ............................ 54,353 2,519,262
International Business Machines Corp. .......... 21,766 2,627,156
Lexmark International, Inc. -- Class A*......... 82,667 2,594,917
NetApp, Inc.*................................... 130,338 3,154,180
QLogic Corp.*................................... 168,365 2,687,105
SanDisk Corp.*.................................. 126,799 3,434,985
Sun Microsystems, Inc.*......................... 161,069 2,522,341
Teradata Corp.*................................. 109,894 2,339,643
--------------
TOTAL COMPUTERS & PERIPHERALS 30,409,171
--------------
CONSTRUCTION & ENGINEERING 0.5%
Fluor Corp. .................................... 19,783 3,024,227
Jacobs Engineering Group, Inc.*................. 36,960 3,190,757
--------------
TOTAL CONSTRUCTION & ENGINEERING 6,214,984
--------------
CONSTRUCTION MATERIALS 0.2%
Vulcan Materials Co. ........................... 39,745 2,735,251
--------------
TOTAL CONSTRUCTION MATERIALS 2,735,251
--------------
CONSUMER FINANCE 0.8%
American Express Co. ........................... 58,004 2,785,352
Capital One Financial Corp. .................... 49,691 2,633,623
Discover Financial Services..................... 158,867 2,892,968
SLM Corp.*...................................... 160,023 2,965,226
--------------
TOTAL CONSUMER FINANCE 11,277,169
--------------
CONTAINERS & PACKAGING 0.8%
Ball Corp. ..................................... 58,338 3,137,418
Bemis Co., Inc. ................................ 104,476 2,747,719
Pactiv Corp.*................................... 97,614 2,322,237
Sealed Air Corp. ............................... 105,387 2,665,237
--------------
TOTAL CONTAINERS & PACKAGING 10,872,611
--------------
DISTRIBUTORS 0.2%
Genuine Parts Co. .............................. 63,406 2,692,219
--------------
TOTAL DISTRIBUTORS 2,692,219
--------------
DIVERSIFIED CONSUMER SERVICES 0.4%
Apollo Group, Inc. -- Class A*.................. 46,253 2,354,278
H&R Block, Inc. ................................ 122,544 2,680,037
--------------
TOTAL DIVERSIFIED CONSUMER SERVICES 5,034,315
--------------
DIVERSIFIED FINANCIAL SERVICES 1.9%
Bank of America Corp. .......................... 63,833 2,396,291
CIT Group, Inc. ................................ 290,400 3,162,456
Citigroup, Inc. ................................ 118,642 2,998,083
CME Group, Inc. ................................ 5,509 2,520,092
IntercontinentalExchange, Inc.*................. 20,785 3,224,793
JPMorgan Chase & Co. ........................... 58,234 2,774,850
Leucadia National Corp. ........................ 58,005 2,971,016
Moody's Corp. .................................. 73,051 2,699,965
NYSE Euronext................................... 41,898 2,769,458
--------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 25,517,004
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES 1.4%
AT&T, Inc. ..................................... 70,257 2,719,649
CenturyTel, Inc. ............................... 76,418 2,479,764
Citizens Communications Co. .................... 241,758 2,591,646
Embarq Corp. ................................... 65,469 2,721,546
Qwest Communications International, Inc. ....... 555,784 2,867,846
Verizon Communications, Inc. ................... 72,178 2,777,409
Windstream Corp. ............................... 211,984 2,488,692
--------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 18,646,552
--------------
ELECTRIC UTILITIES 2.6%
Allegheny Energy, Inc. ......................... 52,579 2,828,750
American Electric Power Co., Inc. .............. 62,726 2,799,461
Duke Energy Corp. .............................. 142,056 2,601,045
Edison International............................ 52,751 2,752,020
Entergy Corp. .................................. 24,311 2,792,361
Exelon Corp. ................................... 31,864 2,723,735
FirstEnergy Corp. .............................. 37,012 2,799,588
FPL Group, Inc. ................................ 42,171 2,795,516
Pepco Holdings, Inc. ........................... 103,505 2,578,310
Pinnacle West Capital Corp. .................... 71,240 2,417,886
PPL Corp. ...................................... 55,354 2,658,099
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 9
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Progress Energy, Inc. .......................... 61,353 $2,576,212
Southern Co. ................................... 71,609 2,666,003
--------------
TOTAL ELECTRIC UTILITIES 34,988,986
--------------
ELECTRICAL EQUIPMENT 0.6%
Cooper Industries, Ltd. -- Class A.............. 68,115 2,887,395
Emerson Electric Co. ........................... 51,898 2,712,189
Rockwell Automation, Inc. ...................... 47,229 2,561,229
--------------
TOTAL ELECTRICAL EQUIPMENT 8,160,813
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.8%
Agilent Technologies, Inc.*..................... 87,355 2,638,995
Jabil Circuit, Inc. ............................ 216,612 2,356,739
Molex, Inc. .................................... 112,106 3,181,568
Tyco Electronics, Ltd. ......................... 79,001 2,955,427
--------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 11,132,729
--------------
ENERGY EQUIPMENT & SERVICES 2.9%
Baker Hughes, Inc. ............................. 38,216 3,090,910
BJ Services Co. ................................ 104,548 2,955,572
Cameron International Corp.*.................... 65,342 3,216,787
ENSCO International, Inc. ...................... 41,992 2,676,150
Halliburton Co. ................................ 70,329 3,228,804
Nabors Industries, Ltd.*........................ 83,282 3,126,406
National-Oilwell Varco, Inc.*................... 49,274 3,372,805
Noble Corp. .................................... 54,803 3,084,313
Rowan Cos., Inc. ............................... 69,718 2,718,305
Schlumberger, Ltd. ............................. 31,283 3,145,506
Smith International, Inc. ...................... 42,012 3,214,338
Transocean, Inc.*............................... 19,463 2,870,014
Weatherford International, Ltd.*................ 40,028 3,229,059
--------------
TOTAL ENERGY EQUIPMENT & SERVICES 39,928,969
--------------
FOOD & STAPLES RETAILING 1.8%
Costco Wholesale Corp. ......................... 40,908 2,914,695
CVS Caremark Corp. ............................. 64,438 2,601,362
Kroger Co. ..................................... 100,610 2,741,623
Safeway, Inc. .................................. 87,699 2,771,288
SUPERVALU, Inc. ................................ 90,111 2,982,674
Sysco Corp. .................................... 87,297 2,668,669
Wal-Mart Stores, Inc. .......................... 48,581 2,816,726
Walgreen Co. ................................... 70,037 2,440,790
Whole Foods Market, Inc. ....................... 79,242 2,586,459
--------------
TOTAL FOOD & STAPLES RETAILING 24,524,286
--------------
FOOD PRODUCTS 2.6%
Archer-Daniels-Midland Co. ..................... 62,817 2,767,717
Campbell Soup Co. .............................. 77,069 2,682,001
ConAgra Foods, Inc. ............................ 115,184 2,713,735
Dean Foods Co.*................................. 127,593 2,965,261
General Mills, Inc. ............................ 42,492 2,566,517
H.J. Heinz Co. ................................. 56,685 2,665,895
Hershey Co. .................................... 67,865 2,536,794
Kellogg Co. .................................... 49,652 2,540,693
Kraft Foods, Inc. -- Class A.................... 82,978 2,624,594
McCormick & Co., Inc. .......................... 70,159 2,651,309
Sara Lee Corp. ................................. 195,494 2,836,618
Tyson Foods, Inc. -- Class A.................... 150,785 2,683,973
Wm. Wrigley Jr. Co. ............................ 41,239 3,140,762
--------------
TOTAL FOOD PRODUCTS 35,375,869
--------------
GAS UTILITIES 0.4%
Nicor, Inc. .................................... 76,569 2,689,103
Questar Corp. .................................. 47,340 2,936,500
--------------
TOTAL GAS UTILITIES 5,625,603
--------------
HEALTH CARE EQUIPMENT & SUPPLIES 2.1%
Baxter International, Inc. ..................... 43,874 2,734,228
Becton, Dickinson & Co. ........................ 29,009 2,593,405
Boston Scientific Corp.*........................ 203,887 2,717,814
C.R. Bard, Inc. ................................ 25,843 2,433,635
Covidien, Ltd. ................................. 59,321 2,769,697
Hospira, Inc.*.................................. 59,130 2,433,199
Medtronic, Inc. ................................ 52,959 2,578,044
St Jude Medical, Inc.*.......................... 60,621 2,653,987
Stryker Corp. .................................. 40,577 2,630,607
Varian Medical Systems, Inc.*................... 54,892 2,573,337
Zimmer Holdings, Inc.*.......................... 32,455 2,406,863
--------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 28,524,816
--------------
HEALTH CARE PROVIDERS & SERVICES 3.0%
Aetna, Inc. .................................... 60,220 2,625,592
AmerisourceBergen Corp. ........................ 62,074 2,517,101
Cardinal Health, Inc. .......................... 49,502 2,577,569
CIGNA Corp. .................................... 64,098 2,737,626
Coventry Health Care, Inc.*..................... 60,883 2,723,297
Express Scripts, Inc.*.......................... 42,170 2,952,743
Humana, Inc.*................................... 56,664 2,707,972
Laboratory Corp. of America Holdings*........... 34,198 2,586,053
McKesson Corp. ................................. 46,918 2,445,366
Medco Health Solutions, Inc.*................... 57,396 2,843,398
Patterson Cos., Inc.*........................... 71,240 2,436,408
Quest Diagnostics, Inc. ........................ 56,866 2,853,536
Tenet Healthcare Corp.*......................... 502,145 3,213,728
UnitedHealth Group, Inc. ....................... 72,582 2,368,351
WellPoint, Inc.*................................ 55,634 2,767,791
--------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 40,356,531
--------------
HEALTH CARE TECHNOLOGY 0.2%
IMS Health, Inc. ............................... 120,423 2,980,469
--------------
TOTAL HEALTH CARE TECHNOLOGY 2,980,469
--------------
HOTELS, RESTAURANTS & LEISURE 1.9%
Carnival Corp. ................................. 65,375 2,626,114
Darden Restaurants, Inc. ....................... 75,657 2,691,876
International Game Technology................... 58,085 2,017,873
Marriott International, Inc. -- Class A......... 75,946 2,604,948
McDonald's Corp. ............................... 46,889 2,793,646
Starbucks Corp.*................................ 143,826 2,334,296
Starwood Hotels & Resorts Worldwide, Inc. ...... 50,823 2,653,469
Wendy's International, Inc. .................... 108,290 3,140,410
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 10
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Wyndham Worldwide Corp. ........................ 128,879 $2,768,321
Yum! Brands, Inc. .............................. 69,005 2,807,123
--------------
TOTAL HOTELS, RESTAURANTS & LEISURE 26,438,076
--------------
HOUSEHOLD DURABLES 2.4%
Black & Decker Corp. ........................... 38,804 2,546,706
Centex Corp. ................................... 108,735 2,263,863
D.R. Horton, Inc. .............................. 164,295 2,544,930
Fortune Brands, Inc. ........................... 39,165 2,648,337
Harman International Industries, Inc. .......... 58,417 2,387,503
KB HOME......................................... 105,881 2,382,322
Leggett & Platt, Inc. .......................... 166,856 2,769,810
Lennar Corp. -- Class A......................... 152,433 2,807,816
Newell Rubbermaid, Inc. ........................ 112,456 2,308,722
Pulte Homes, Inc. .............................. 184,034 2,399,803
Snap-on, Inc. .................................. 52,277 3,100,549
Stanley Works................................... 53,289 2,570,661
Whirlpool Corp. ................................ 29,669 2,159,310
--------------
TOTAL HOUSEHOLD DURABLES 32,890,332
--------------
HOUSEHOLD PRODUCTS 0.7%
Clorox Co. ..................................... 45,106 2,390,618
Colgate-Palmolive Co. .......................... 33,036 2,335,645
Kimberly-Clark Corp. ........................... 39,396 2,520,950
Procter & Gamble Co. ........................... 37,272 2,499,088
--------------
TOTAL HOUSEHOLD PRODUCTS 9,746,301
--------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.6%
AES Corp.*...................................... 159,368 2,766,628
Constellation Energy Group, Inc. ............... 30,311 2,565,826
Dynegy, Inc. -- Class A*........................ 333,988 2,878,977
--------------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 8,211,431
--------------
INDUSTRIAL CONGLOMERATES 0.8%
3M Co. ......................................... 32,705 2,515,014
General Electric Co. ........................... 69,045 2,257,772
Textron, Inc. .................................. 47,510 2,898,585
Tyco International, Ltd. ....................... 59,109 2,765,710
--------------
TOTAL INDUSTRIAL CONGLOMERATES 10,437,081
--------------
INSURANCE 4.8%
ACE, Ltd. ...................................... 45,324 2,732,584
AFLAC, Inc. .................................... 39,967 2,664,600
Allstate Corp. ................................. 53,939 2,716,368
Ambac Financial Group, Inc. .................... 445,553 2,062,910
American International Group, Inc. ............. 58,526 2,703,901
Aon Corp. ...................................... 62,665 2,844,364
Assurant, Inc. ................................. 41,889 2,722,785
Chubb Corp. .................................... 51,746 2,740,986
Cincinnati Financial Corp. ..................... 65,979 2,368,646
Genworth Financial, Inc. -- Class A............. 112,335 2,590,445
Hartford Financial Services Group, Inc. ........ 35,368 2,520,677
Lincoln National Corp. ......................... 49,941 2,684,828
Loews Corp. .................................... 64,047 2,697,019
Marsh & McLennan Cos., Inc. .................... 101,790 2,808,386
MBIA, Inc. ..................................... 204,290 2,124,616
MetLife, Inc. .................................. 43,442 2,643,446
Principal Financial Group, Inc. ................ 47,378 2,542,304
Progressive Corp. .............................. 160,325 2,916,312
Prudential Financial, Inc. ..................... 34,757 2,631,452
SAFECO Corp. ................................... 59,438 3,966,892
Torchmark Corp. ................................ 42,531 2,753,457
Travelers Cos., Inc. ........................... 53,860 2,714,544
Unum Group...................................... 118,218 2,743,840
XL Capital, Ltd. -- Class A..................... 80,365 2,803,935
--------------
TOTAL INSURANCE 64,699,297
--------------
INTERNET & CATALOG RETAIL 0.6%
Amazon.com, Inc.*............................... 35,929 2,825,097
Expedia, Inc.*.................................. 120,840 3,052,419
IAC/InterActiveCorp*............................ 124,195 2,584,498
--------------
TOTAL INTERNET & CATALOG RETAIL 8,462,014
--------------
INTERNET SOFTWARE & SERVICES 1.1%
Akamai Technologies, Inc.*...................... 86,531 3,095,214
eBay, Inc.*..................................... 91,341 2,858,060
Google, Inc. -- Class A*........................ 6,040 3,468,711
VeriSign, Inc.*................................. 74,603 2,689,438
Yahoo!, Inc.*................................... 94,085 2,578,870
--------------
TOTAL INTERNET SOFTWARE & SERVICES 14,690,293
--------------
IT SERVICES 2.4%
Affiliated Computer Services, Inc. -- Class A*.. 53,638 2,841,205
Automatic Data Processing, Inc. ................ 62,965 2,783,053
Cognizant Technology Solutions Corp. -- Class
A*........................................... 91,838 2,961,776
Computer Sciences Corp.*........................ 63,616 2,773,021
Convergys Corp.*................................ 169,520 2,664,854
Electronic Data Systems Corp. .................. 156,737 2,909,039
Fidelity National Information Services, Inc. ... 66,861 2,411,008
Fiserv, Inc.*................................... 52,761 2,667,069
Paychex, Inc. .................................. 78,951 2,871,448
Total System Services, Inc. .................... 113,919 2,711,272
Unisys Corp.*................................... 608,034 2,529,421
Western Union Co. .............................. 116,236 2,673,428
--------------
TOTAL IT SERVICES 32,796,594
--------------
LEISURE EQUIPMENT & PRODUCTS 0.8%
Brunswick Corp. ................................ 153,298 2,557,011
Eastman Kodak Co. .............................. 154,148 2,757,708
Hasbro, Inc. ................................... 93,374 3,320,379
Mattel, Inc. ................................... 121,882 2,285,287
--------------
TOTAL LEISURE EQUIPMENT & PRODUCTS 10,920,385
--------------
LIFE SCIENCES TOOLS & SERVICES 1.0%
Applera Corp. -- Applied Biosystems Group....... 81,375 2,596,676
Millipore Corp.*................................ 38,354 2,688,615
PerkinElmer, Inc. .............................. 110,555 2,936,341
Thermo Electron Corp.*.......................... 47,299 2,737,193
Waters Corp.*................................... 47,732 2,933,609
--------------
TOTAL LIFE SCIENCES TOOLS & SERVICES 13,892,434
--------------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 11
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MACHINERY 2.9%
Caterpillar, Inc. .............................. 34,498 $2,824,696
Cummins, Inc. .................................. 52,588 3,294,638
Danaher Corp. .................................. 33,646 2,625,061
Deere & Co. .................................... 32,434 2,726,726
Dover Corp. .................................... 62,515 3,092,617
Eaton Corp. .................................... 32,134 2,822,651
Illinois Tool Works, Inc. ...................... 53,049 2,773,932
Ingersoll-Rand Co., Ltd. -- Class A............. 59,790 2,653,480
ITT Corp. ...................................... 48,452 3,100,928
Manitowoc Co., Inc. ............................ 67,412 2,549,522
PACCAR, Inc. ................................... 55,192 2,611,686
Pall Corp. ..................................... 69,126 2,403,511
Parker-Hannifin Corp. .......................... 39,576 3,160,144
Terex Corp.*.................................... 43,693 3,044,528
--------------
TOTAL MACHINERY 39,684,120
--------------
MEDIA 3.0%
CBS Corp. -- Class B............................ 112,396 2,592,976
Clear Channel Communications, Inc. ............. 76,814 2,315,942
Comcast Corp. -- Class A........................ 131,593 2,704,236
DIRECTV Group, Inc.*............................ 104,016 2,562,954
E.W. Scripps Co. -- Class A..................... 60,612 2,722,085
Gannett Co., Inc. .............................. 84,391 2,415,270
Interpublic Group of Cos., Inc.*................ 298,702 2,703,253
McGraw-Hill Cos., Inc. ......................... 69,455 2,846,961
Meredith Corp. ................................. 64,798 2,100,103
New York Times Co. -- Class A................... 132,581 2,585,330
News Corp. -- Class A........................... 137,873 2,467,927
Omnicom Group, Inc. ............................ 59,520 2,841,485
Time Warner, Inc. .............................. 179,054 2,658,952
Viacom, Inc. -- Class B*........................ 65,901 2,533,234
Walt Disney Co. ................................ 80,615 2,614,344
Washington Post Co. -- Class B.................. 3,816 2,501,770
--------------
TOTAL MEDIA 41,166,822
--------------
METALS & MINING 1.4%
Alcoa, Inc. .................................... 72,774 2,531,080
Allegheny Technologies, Inc. ................... 35,389 2,435,825
Freeport-McMoRan Copper & Gold, Inc. ........... 28,868 3,283,735
Newmont Mining Corp. ........................... 54,054 2,389,727
Nucor Corp. .................................... 36,995 2,793,122
Titanium Metals Corp. .......................... 186,579 2,843,464
United States Steel Corp. ...................... 22,098 3,401,987
--------------
TOTAL METALS & MINING 19,678,940
--------------
MULTI-UTILITIES 2.6%
Ameren Corp. ................................... 59,059 2,678,916
CenterPoint Energy, Inc. ....................... 180,674 2,749,858
CMS Energy Corp. ............................... 185,152 2,699,516
Consolidated Edison, Inc. ...................... 62,726 2,609,402
Dominion Resources, Inc. ....................... 63,046 2,735,566
DTE Energy Co. ................................. 65,210 2,628,615
Integrys Energy Group, Inc. .................... 56,245 2,693,573
NiSource, Inc. ................................. 145,606 2,606,347
PG&E Corp. ..................................... 69,205 2,768,200
Public Service Enterprise Group, Inc. .......... 61,405 2,696,294
Sempra Energy................................... 51,407 2,913,235
TECO Energy, Inc. .............................. 169,882 2,719,811
Xcel Energy, Inc. .............................. 127,164 2,645,011
--------------
TOTAL MULTI-UTILITIES 35,144,344
--------------
MULTILINE RETAIL 1.8%
Big Lots, Inc.*................................. 119,638 3,233,815
Dillard's, Inc. -- Class A...................... 143,865 2,934,846
Family Dollar Stores, Inc. ..................... 129,740 2,776,436
J.C. Penney Co., Inc. .......................... 62,682 2,663,985
Kohl's Corp.*................................... 58,045 2,835,498
Macy's, Inc. ................................... 105,293 2,662,860
Nordstrom, Inc. ................................ 73,342 2,586,039
Sears Holdings Corp.*........................... 25,160 2,481,028
Target Corp. ................................... 49,392 2,624,197
--------------
TOTAL MULTILINE RETAIL 24,798,704
--------------
OFFICE ELECTRONICS 0.2%
Xerox Corp. .................................... 169,324 2,365,456
--------------
TOTAL OFFICE ELECTRONICS 2,365,456
--------------
OIL, GAS & CONSUMABLE FUELS 4.9%
Anadarko Petroleum Corp. ....................... 42,751 2,845,507
Apache Corp. ................................... 23,570 3,174,408
Chesapeake Energy Corp. ........................ 58,107 3,004,132
Chevron Corp. .................................. 30,482 2,930,844
ConocoPhillips.................................. 34,658 2,985,787
CONSOL Energy, Inc. ............................ 40,467 3,276,208
Devon Energy Corp. ............................. 26,695 3,027,213
El Paso Corp. .................................. 167,782 2,875,784
EOG Resources, Inc. ............................ 22,898 2,987,731
Exxon Mobil Corp. .............................. 29,901 2,782,886
Hess Corp. ..................................... 28,537 3,030,629
Marathon Oil Corp. ............................. 55,503 2,529,272
Murphy Oil Corp. ............................... 34,057 3,076,709
Noble Energy, Inc. ............................. 36,261 3,154,707
Occidental Petroleum Corp. ..................... 37,092 3,086,425
Peabody Energy Corp. ........................... 53,101 3,246,064
Range Resources Corp. .......................... 44,263 2,938,178
Spectra Energy Corp. ........................... 111,028 2,742,392
Sunoco, Inc. ................................... 45,767 2,124,046
Tesoro Corp. ................................... 84,203 2,116,863
Valero Energy Corp. ............................ 50,827 2,482,899
Williams Cos., Inc. ............................ 81,646 2,898,433
XTO Energy, Inc. ............................... 44,695 2,764,833
--------------
TOTAL OIL, GAS & CONSUMABLE FUELS 66,081,950
--------------
PAPER & FOREST PRODUCTS 0.6%
International Paper Co. ........................ 94,182 2,464,743
MeadWestvaco Corp. ............................. 96,303 2,532,769
Weyerhaeuser Co. ............................... 40,668 2,597,872
--------------
TOTAL PAPER & FOREST PRODUCTS 7,595,384
--------------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 12
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PERSONAL PRODUCTS 0.4%
Avon Products, Inc. ............................ 64,209 $2,505,435
Estee Lauder Cos., Inc -- Class A............... 57,335 2,615,050
--------------
TOTAL PERSONAL PRODUCTS 5,120,485
--------------
PHARMACEUTICALS 2.7%
Abbott Laboratories............................. 46,377 2,446,387
Allergan, Inc. ................................. 45,547 2,567,484
Barr Pharmaceuticals, Inc.*..................... 54,842 2,754,714
Bristol-Myers Squibb Co. ....................... 119,291 2,620,823
Eli Lilly & Co. ................................ 51,316 2,470,352
Forest Laboratories, Inc.*...................... 65,229 2,264,099
Johnson & Johnson............................... 39,046 2,619,596
King Pharmaceuticals, Inc.*..................... 292,820 2,749,580
Merck & Co., Inc. .............................. 59,339 2,257,255
Mylan Laboratories, Inc. ....................... 228,428 3,008,397
Pfizer, Inc. ................................... 123,709 2,487,788
Schering-Plough Corp. .......................... 128,332 2,362,592
Watson Pharmaceuticals, Inc.*................... 89,440 2,776,218
Wyeth........................................... 61,925 2,753,805
--------------
TOTAL PHARMACEUTICALS 36,139,090
--------------
REAL ESTATE INVESTMENT TRUSTS (REITS) 2.8%
Apartment Investment & Management Co. -- Class
A............................................ 66,903 2,474,073
AvalonBay Communities, Inc. .................... 25,081 2,501,830
Boston Properties, Inc. ........................ 27,976 2,811,308
Developers Diversified Realty Corp. ............ 62,921 2,702,457
Equity Residential Properties Trust............. 62,272 2,585,534
General Growth Properties, Inc. ................ 72,744 2,979,594
HCP, Inc. ...................................... 76,204 2,720,483
Host Hotels & Resorts, Inc. .................... 161,436 2,776,699
Kimco Realty Corp. ............................. 69,473 2,772,667
Plum Creek Timber Co., Inc. .................... 62,735 2,562,097
ProLogis........................................ 43,280 2,709,761
Public Storage, Inc. ........................... 28,077 2,546,584
Simon Property Group, Inc. ..................... 27,465 2,742,655
Vornado Realty Trust............................ 30,710 2,858,794
--------------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 37,744,536
--------------
REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2%
CB Richard Ellis Group, Inc. -- Class A*........ 135,572 3,134,425
--------------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 3,134,425
--------------
ROAD & RAIL 1.1%
Burlington Northern Santa Fe Corp. ............. 28,147 2,886,475
CSX Corp. ...................................... 47,159 2,968,659
Norfolk Southern Corp. ......................... 48,511 2,890,286
Ryder System, Inc. ............................. 41,739 2,857,869
Union Pacific Corp. ............................ 20,865 3,029,389
--------------
TOTAL ROAD & RAIL 14,632,678
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.8%
Advanced Micro Devices, Inc.*................... 414,754 2,471,934
Altera Corp. ................................... 141,356 3,008,056
Analog Devices, Inc. ........................... 91,742 2,955,010
Applied Materials, Inc. ........................ 121,685 2,270,642
Broadcom Corp. -- Class A*...................... 151,665 3,937,223
Intel Corp. .................................... 117,958 2,625,745
KLA-Tencor Corp. ............................... 71,900 3,140,592
Linear Technology Corp. ........................ 82,719 2,891,856
LSI Logic Corp.*................................ 507,240 3,144,888
MEMC Electronic Materials, Inc.*................ 31,283 1,969,890
Microchip Technology, Inc. ..................... 76,929 2,827,141
Micron Technology, Inc.*........................ 435,161 3,359,443
National Semiconductor Corp. ................... 142,366 2,902,843
Novellus Systems, Inc.*......................... 119,901 2,621,036
NVIDIA Corp.*................................... 142,092 2,919,990
Teradyne, Inc.*................................. 212,980 2,830,504
Texas Instruments, Inc. ........................ 90,492 2,638,747
Xilinx, Inc. ................................... 106,370 2,634,785
--------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 51,150,325
--------------
SOFTWARE 2.3%
Adobe Systems, Inc.*............................ 73,945 2,757,409
Autodesk, Inc.*................................. 80,135 3,045,130
BMC Software, Inc.*............................. 78,219 2,718,893
CA, Inc. ....................................... 115,123 2,548,823
Citrix Systems, Inc.*........................... 80,135 2,624,421
Compuware Corp.*................................ 336,235 2,535,212
Electronic Arts, Inc.*.......................... 53,249 2,740,726
Intuit, Inc.*................................... 95,281 2,569,729
Microsoft Corp. ................................ 88,150 2,514,038
Novell, Inc.*................................... 424,221 2,664,108
Oracle Corp.*................................... 128,625 2,681,831
Symantec Corp.*................................. 152,442 2,625,051
--------------
TOTAL SOFTWARE 32,025,371
--------------
SPECIALTY RETAIL 3.3%
Abercrombie & Fitch Co. -- Class A.............. 33,746 2,507,665
AutoNation, Inc.*............................... 167,924 2,688,463
AutoZone, Inc.*................................. 22,097 2,668,213
Bed Bath & Beyond, Inc.*........................ 82,318 2,675,335
Best Buy Co., Inc. ............................. 61,252 2,635,061
GameStop Corp. -- Class A*...................... 51,976 2,860,759
Gap, Inc. ...................................... 120,182 2,237,789
Home Depot, Inc. ............................... 92,484 2,663,539
Limited Brands, Inc. ........................... 151,803 2,811,392
Lowe's Cos., Inc. .............................. 111,996 2,821,179
Office Depot, Inc.*............................. 218,344 2,768,602
OfficeMax, Inc. ................................ 128,251 2,343,146
RadioShack Corp. ............................... 157,060 2,183,134
Sherwin-Williams Co. ........................... 47,060 2,603,359
Staples, Inc. .................................. 112,908 2,450,104
Tiffany & Co. .................................. 68,032 2,962,113
TJX Cos., Inc. ................................. 76,867 2,476,655
--------------
TOTAL SPECIALTY RETAIL 44,356,508
--------------
TEXTILES, APPAREL & LUXURY GOODS 1.2%
Coach, Inc.*.................................... 87,154 3,100,068
Jones Apparel Group, Inc. ...................... 182,465 2,888,421
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 13
RYDEX S&P EQUAL WEIGHT ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Liz Claiborne, Inc. ............................ 136,501 $2,414,702
NIKE, Inc. -- Class B........................... 38,624 2,580,083
Polo Ralph Lauren Corp. ........................ 42,853 2,661,600
V.F. Corp. ..................................... 32,705 2,432,598
--------------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 16,077,472
--------------
THRIFTS & MORTGAGE FINANCE 1.2%
Countrywide Financial Corp. .................... 465,156 2,688,602
Federal Home Loan Mortgage Corp. ............... 77,882 1,940,041
Federal National Mortgage Association........... 74,986 2,122,104
Hudson City Bancorp, Inc. ...................... 140,296 2,683,862
MGIC Investment Corp. .......................... 196,740 2,563,522
Sovereign Bancorp, Inc. ........................ 259,254 1,936,627
Washington Mutual, Inc. ........................ 250,828 3,082,676
--------------
TOTAL THRIFTS & MORTGAGE FINANCE 17,017,434
--------------
TOBACCO 0.7%
Altria Group, Inc. ............................. 119,361 2,387,220
Philip Morris International, Inc.*.............. 47,815 2,440,000
Reynolds American, Inc. ........................ 42,001 2,261,754
UST, Inc. ...................................... 45,618 2,375,329
--------------
TOTAL TOBACCO 9,464,303
--------------
TRADING COMPANIES & DISTRIBUTORS 0.2%
W.W. Grainger, Inc. ............................ 32,745 2,839,319
--------------
TOTAL TRADING COMPANIES & DISTRIBUTORS 2,839,319
--------------
WIRELESS TELECOMMUNICATION SERVICES 0.5%
American Tower Corp. -- Class A*................ 65,080 2,825,774
Sprint Nextel Corp. ............................ 441,357 3,526,442
--------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 6,352,216
--------------
TOTAL COMMON STOCKS
(Cost $1,541,411,051) 1,357,438,441
--------------
SHORT TERM INVESTMENTS 0.2%
SSgA Prime Money Market Fund.................... 2,989,177 2,989,177
--------------
TOTAL SHORT TERM INVESTMENTS
(Cost $2,989,177) 2,989,177
--------------
TOTAL INVESTMENTS 100.0%
(Cost $1,544,400,228) 1,360,427,618
--------------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 502,452
--------------
NET ASSETS--100.0% $1,360,930,070
- ------------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 14
RYDEX RUSSELL TOP 50 ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ---------------------------------------------------------------------------
COMMON STOCKS 99.6%
AEROSPACE & DEFENSE 2.3%
Boeing Co. ..................................... 78,720 $6,680,179
United Technologies Corp. ...................... 99,419 7,204,895
------------
TOTAL AEROSPACE & DEFENSE 13,885,074
------------
AIR FREIGHT & LOGISTICS 0.8%
United Parcel Service, Inc. -- Class B.......... 67,120 4,860,159
------------
TOTAL AIR FREIGHT & LOGISTICS 4,860,159
------------
BEVERAGES 4.2%
Coca-Cola Co. .................................. 230,935 13,595,144
PepsiCo, Inc. .................................. 162,848 11,159,973
------------
TOTAL BEVERAGES 24,755,117
------------
BIOTECHNOLOGY 1.3%
Amgen, Inc.*.................................... 108,465 4,541,429
Genentech, Inc.*................................ 46,535 3,173,687
------------
TOTAL BIOTECHNOLOGY 7,715,116
------------
CAPITAL MARKETS 3.0%
Goldman Sachs Group, Inc. ...................... 42,477 8,128,824
Merrill Lynch & Co., Inc. ...................... 87,963 4,383,196
Morgan Stanley.................................. 107,058 5,203,019
------------
TOTAL CAPITAL MARKETS 17,715,039
------------
COMMERCIAL BANKS 2.6%
Wachovia Corp. ................................. 191,166 5,572,489
Wells Fargo & Co. .............................. 335,584 9,983,624
------------
TOTAL COMMERCIAL BANKS 15,556,113
------------
COMMUNICATIONS EQUIPMENT 3.8%
Cisco Systems, Inc.*............................ 606,284 15,545,122
QUALCOMM, Inc. ................................. 166,630 7,196,749
------------
TOTAL COMMUNICATIONS EQUIPMENT 22,741,871
------------
COMPUTERS & PERIPHERALS 7.4%
Apple, Inc.*.................................... 86,471 15,041,631
Hewlett-Packard Co. ............................ 267,774 12,411,325
International Business Machines Corp. .......... 136,352 16,457,686
------------
TOTAL COMPUTERS & PERIPHERALS 43,910,642
------------
CONSUMER FINANCE 1.0%
American Express Co. ........................... 103,536 4,971,799
Discover Financial Services..................... 47,633 867,397
------------
TOTAL CONSUMER FINANCE 5,839,196
------------
DIVERSIFIED FINANCIAL SERVICES 7.7%
Bank of America Corp. .......................... 443,670 16,655,372
Citigroup, Inc. ................................ 492,937 12,456,518
JPMorgan Chase & Co. ........................... 341,531 16,273,952
------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 45,385,842
------------
DIVERSIFIED TELECOMMUNICATION SERVICES 5.9%
AT&T, Inc. ..................................... 616,399 23,860,805
Verizon Communications, Inc. ................... 290,268 11,169,513
------------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 35,030,318
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Tyco Electronics, Ltd. ......................... 49,552 1,853,740
------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,853,740
------------
ENERGY EQUIPMENT & SERVICES 2.0%
Schlumberger, Ltd. ............................. 117,829 $11,847,706
------------
TOTAL ENERGY EQUIPMENT & SERVICES 11,847,706
------------
FOOD & STAPLES RETAILING 2.4%
Wal-Mart Stores, Inc. .......................... 241,053 13,976,253
------------
TOTAL FOOD & STAPLES RETAILING 13,976,253
------------
HEALTH CARE EQUIPMENT & SUPPLIES 0.4%
Covidien, Ltd. ................................. 49,552 2,313,583
------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,313,583
------------
HEALTH CARE PROVIDERS & SERVICES 0.7%
UnitedHealth Group, Inc. ....................... 134,512 4,389,127
------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 4,389,127
------------
HOUSEHOLD PRODUCTS 3.6%
Procter & Gamble Co. ........................... 314,813 21,108,212
------------
TOTAL HOUSEHOLD PRODUCTS 21,108,212
------------
INDUSTRIAL CONGLOMERATES 6.1%
General Electric Co. ........................... 1,028,559 33,633,879
Tyco International, Ltd. ....................... 49,552 2,318,538
------------
TOTAL INDUSTRIAL CONGLOMERATES 35,952,417
------------
INSURANCE 1.8%
American International Group, Inc. ............. 224,091 10,353,004
------------
TOTAL INSURANCE 10,353,004
------------
INTERNET SOFTWARE & SERVICES 2.2%
Google, Inc. -- Class A*........................ 22,932 13,169,618
------------
TOTAL INTERNET SOFTWARE & SERVICES 13,169,618
------------
MEDIA 3.7%
Comcast Corp. -- Class A........................ 295,260 6,067,593
News Corp. -- Class A........................... 227,830 4,078,157
Time Warner, Inc. .............................. 376,746 5,594,678
Walt Disney Co. ................................ 198,113 6,424,805
------------
TOTAL MEDIA 22,165,233
------------
OIL, GAS & CONSUMABLE FUELS 14.7%
Chevron Corp. .................................. 214,861 20,658,885
ConocoPhillips.................................. 163,400 14,076,910
Exxon Mobil Corp. .............................. 563,441 52,439,454
------------
TOTAL OIL, GAS & CONSUMABLE FUELS 87,175,249
------------
PHARMACEUTICALS 10.3%
Abbott Laboratories............................. 153,993 8,123,131
Eli Lilly & Co. ................................ 99,308 4,780,687
Johnson & Johnson............................... 289,580 19,427,922
Merck & Co., Inc. .............................. 216,671 8,242,165
Pfizer, Inc. ................................... 701,648 14,110,141
Wyeth........................................... 134,479 5,980,281
------------
TOTAL PHARMACEUTICALS 60,664,327
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.2%
Intel Corp. .................................... 580,951 12,931,969
------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 12,931,969
------------
SOFTWARE 5.3%
Microsoft Corp. ................................ 820,635 23,404,510
Oracle Corp.*................................... 385,474 8,037,133
------------
TOTAL SOFTWARE 31,441,643
------------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 15
RYDEX RUSSELL TOP 50 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ---------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
SPECIALTY RETAIL 1.0%
Home Depot, Inc. ............................... 197,397 $5,685,034
------------
TOTAL SPECIALTY RETAIL 5,685,034
------------
TOBACCO 2.5%
Altria Group, Inc. ............................. 210,266 4,205,320
Philip Morris International, Inc.*.............. 210,266 10,729,874
------------
TOTAL TOBACCO 14,935,194
------------
WIRELESS TELECOMMUNICATION SERVICES 0.4%
Sprint Nextel Corp. ............................ 281,189 2,246,700
------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 2,246,700
------------
TOTAL COMMON STOCKS
(Cost $625,442,886) 589,603,496
------------
SHORT TERM INVESTMENTS 0.3%
SSgA Prime Money Market Fund.................... 1,808,576 1,808,576
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,808,576) 1,808,576
------------
TOTAL INVESTMENTS 99.9%
(Cost $627,251,462) 591,412,072
------------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 520,191
------------
NET ASSETS--100.0% $591,932,263
- ---------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 16
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX RUSSELL
EQUAL TOP 50
WEIGHT ETF ETF
-------------- -------------
ASSETS
Investments at Market Value*............................. $1,360,427,618 $591,412,072
Cash..................................................... 10 --
Receivables:
Dividends.............................................. 940,732 616,292
-------------- ------------
TOTAL ASSETS........................................ 1,361,368,360 592,028,364
-------------- ------------
LIABILITIES
Payables:
Accrued Management Fees................................ 438,290 96,101
-------------- ------------
TOTAL LIABILITIES................................... 438,290 96,101
-------------- ------------
NET ASSETS............................................... $1,360,930,070 $591,932,263
============== ============
NET ASSETS CONSIST OF:
Paid-in Capital.......................................... $1,563,937,709 $628,647,119
Undistributed Net Investment Income...................... 1,111,744 671,729
Accumulated Net Realized Loss on Investments............. (20,146,773) (1,547,195)
Net Unrealized Depreciation on Investments............... (183,972,610) (35,839,390)
-------------- ------------
NET ASSETS............................................... $1,360,930,070 $591,932,263
============== ============
Shares Outstanding (Unlimited Shares Authorized), No Par
Value.................................................. 30,057,482 5,750,122
============== ============
Net Asset Value, Offering Price and Repurchase Price Per
Share.................................................. $ 45.28 $ 102.94
============== ============
*Total Cost of Investments............................... $1,544,400,228 $627,251,462
============== ============
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 17
STATEMENTS OF OPERATIONS For the Six Months Ended
April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX RUSSELL
EQUAL TOP 50
WEIGHT ETF ETF
------------- -------------
INVESTMENT INCOME
Dividends............................................... $ 15,676,565 $ 7,343,214
------------- ------------
Total Income......................................... 15,676,565 7,343,214
------------- ------------
EXPENSES
Management Fee.......................................... 3,077,845 608,904
------------- ------------
Net Investment Income..................................... 12,598,720 6,734,310
------------- ------------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net Realized Gain/(Loss) From:
Investments............................................. (16,747,338) (8,895)
In-kind Redemptions..................................... 56,554,889 8,750,090
------------- ------------
Net Realized Gain.................................... 39,807,551 8,741,195
Net Change in Unrealized Depreciation on Investments...... (256,979,913) (90,015,293)
------------- ------------
Net Realized and Unrealized Loss on Investments........... (217,172,362) (81,274,098)
------------- ------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS......................................... $(204,573,642) $(74,539,788)
============= ============
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 18
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT ETF RYDEX RUSSELL TOP 50 ETF
----------------------------------- -----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
---------------- ---------------- ---------------- ----------------
OPERATIONS
Net Investment Income.......... $ 12,598,720 $ 25,817,694 $ 6,734,310 $ 10,928,752
Net Realized Gain.............. 39,807,551 236,861,135 8,741,195 27,813,824
Net Change in Unrealized
Appreciation/(Depreciation)
on Investments.............. (256,979,913) (60,770,241) (90,015,293) 33,495,340
-------------- --------------- ------------- -------------
Net Increase/(Decrease) in Net
Assets Resulting From
Operations.................. (204,573,642) 201,908,588 (74,539,788) 72,237,916
-------------- --------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net Investment Income.......... (12,089,503) (25,503,538) (6,752,842) (10,668,692)
-------------- --------------- ------------- -------------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold...... 138,987,881 1,286,385,367 108,495,560 451,183,675
Value of Shares Reinvested..... 24,450 214,399 8,775 3,303
Value of Shares Repurchased.... (739,111,684) (1,045,109,356) (116,634,221) (195,942,838)
-------------- --------------- ------------- -------------
Net Increase/(Decrease) in Net
Assets Resulting From Share
Transactions................ (600,099,353) 241,490,410 (8,129,886) 255,244,140
-------------- --------------- ------------- -------------
Increase/(Decrease) in Net
Assets.................... (816,762,498) 417,895,460 (89,422,516) 316,813,364
NET ASSETS--BEGINNING OF PERIOD.. 2,177,692,568 1,759,797,108 681,354,779 364,541,415
-------------- --------------- ------------- -------------
NET ASSETS--END OF PERIOD(1)..... $1,360,930,070 $ 2,177,692,568 $ 591,932,263 $ 681,354,779
============== =============== ============= =============
(1) Including Undistributed Net
Investment Income.............. $ 1,111,744 $ 602,527 $ 671,729 $ 690,261
============== =============== ============= =============
CHANGES IN SHARES OUTSTANDING:
Shares Sold.................... 3,150,000 25,750,000 1,050,000 4,150,000
Shares Reinvested.............. 536 4,357 87 30
Shares Repurchased............. (16,104,000) (20,950,000) (1,150,000) (1,800,000)
Shares Outstanding, Beginning
of Period................... 43,010,946 38,206,589 5,850,035 3,500,005
-------------- --------------- ------------- -------------
Shares Outstanding, End of
Year........................ 30,057,482 43,010,946 5,750,122 5,850,035
============== =============== ============= =============
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 19
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT ETF
----------------------------------------------------------------------------------------------------
FOR THE PERIOD
SIX MONTHS APRIL 24, 2003*
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
APRIL 30, 2008 OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 2007 2006(1)(2) 2005(1) 2004(1) 2003(1)
--------------- --------------- --------------- --------------- --------------- ---------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF
PERIOD.............. $50.63 $46.06 $39.68 $35.70 $31.61 $25.26
---------- ---------- ---------- ---------- -------- --------
Net Investment
Income**............ 0.37 0.59 0.52 0.43 0.37 0.18
Net Realized and
Unrealized
Gain/(Loss) on
Investments......... (5.36) 4.56 6.36 3.95 4.08 6.33
---------- ---------- ---------- ---------- -------- --------
TOTAL FROM INVESTMENT
OPERATIONS.......... (4.99) 5.15 6.88 4.38 4.45 6.51
---------- ---------- ---------- ---------- -------- --------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment
Income.............. (0.36) (0.58) (0.50) (0.40) (0.36) (0.16)
---------- ---------- ---------- ---------- -------- --------
NET ASSET VALUE AT END
OF PERIOD........... $45.28 $50.63 $46.06 $39.68 $35.70 $31.61
========== ========== ========== ========== ======== ========
TOTAL RETURN***....... (9.86)% 11.23% 17.42% 12.29% 14.11% 25.77%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at End of
Period (000's
Omitted)............ $1,360,930 $2,177,693 $1,759,797 $1,071,410 $485,636 $177,135
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.............. 0.40%**** 0.40% 0.40% 0.40% 0.40% 0.40%****
Net Investment
Income.............. 1.64%**** 1.22% 1.21% 1.11% 1.09% 1.13%****
Portfolio Turnover
Rate+............... 14% 25% 16% 22% 55% 42%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
(1) All per share information representing data prior to April 26, 2006 has
been adjusted for the effect of a 4 for 1 stock split which occurred on
April 26, 2006.
(2) Beginning with the year ended October 31, 2006, the Fund was audited by
Ernst & Young LLP. The previous periods were audited by another
independent registered public accounting firm.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 20
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX RUSSELL TOP 50 ETF
--------------------------------------------------------------------------
SIX MONTHS FOR THE PERIOD
ENDED MAY 4, 2005*
APRIL 30, 2008 YEAR ENDED YEAR ENDED THROUGH
(UNAUDITED) OCTOBER 31, 2007 OCTOBER 31, 2006(1) OCTOBER 31, 2005
-------------- ---------------- ------------------- ----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF
PERIOD.............................. $116.47 $104.15 $91.39 $91.51
-------- -------- -------- --------
Net Investment Income**............... 1.15 2.15 1.92 0.79
Net Realized and Unrealized
Gain/(Loss) on Investments.......... (13.52) 12.25 12.71 (0.46)
-------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS...... (12.37) 14.40 14.63 0.33
-------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income................. (1.16) (2.08) (1.87) (0.45)
-------- -------- -------- --------
NET ASSET VALUE AT END OF PERIOD...... $102.94 $116.47 $104.15 $91.39
======== ======== ======== ========
TOTAL RETURN***....................... (10.63)% 13.96% 16.18% 0.36%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's
Omitted)............................ $591,932 $681,355 $364,541 $137,085
RATIO TO AVERAGE NET ASSETS OF:
Expenses.............................. 0.20%**** 0.20% 0.20% 0.20%****
Net Investment Income................. 2.21%**** 1.96% 1.98% 1.74%****
Portfolio Turnover Rate+.............. 0% 8% 7% 1%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
(1) Beginning with the year ended October 31, 2006, the Fund was audited by
Ernst & Young LLP. The previous periods were audited by another
independent registered public accounting firm.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 21
NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
1. ORGANIZATION
Rydex ETF Trust (the "Trust") is an open-end, management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act"). The Trust was organized as a Delaware statutory trust on November 22,
2002. As of April 30, 2008, the Trust offers twenty three portfolios, each of
which represents a separate series of beneficial interest in the Trust (each a
"Fund" and collectively the "Funds"). The financial statements herein relate to
the following two Funds: Rydex S&P Equal Weight ETF and Rydex Russell Top 50
ETF. Rydex S&P Equal Weight ETF commenced operations on April 24, 2003 and the
Rydex Russell Top 50 ETF commenced operations on May 4, 2005.
The Funds' investment objective is to provide investment results that correspond
generally to the performance, before fees and expenses, of an index representing
publicly traded equity securities (the "Underlying Index"). Rydex S&P Equal
Weight ETF tracks the S&P 500 Equal Weight Total Return Index. Rydex Russell Top
50 ETF tracks the Russell Top 50(TM )Index. The Funds seek to achieve their
objective by investing in common stocks that comprise the Underlying Index. The
Funds use a "replication" strategy to track the Underlying Index. "Replication"
refers to investing in substantially all of the securities in the Underlying
Index in approximately the same proportions as in the Underlying Index.
The Funds operate as index funds and are not actively managed. Adverse
performance of a security in the Funds' portfolio will ordinarily not result in
the elimination of the security from the Funds' portfolio.
The Funds issue and redeem shares on a continuous basis, at net asset value,
only in aggregations of 50,000 shares called a "Creation Unit". Creation Units
are issued and redeemed principally in-kind for securities included in the
Underlying Index.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosures at the date of the financial statements and
accompanying notes and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Management believes that the
estimates utilized in preparing the Funds' financial statements are reasonable
and prudent; however, actual results could differ from these estimates.
A. SECURITY VALUATION
Securities listed on a domestic securities exchange are valued based on the last
sale price as of the close of regular trading hours on the New York Stock
Exchange or, in the absence of recorded sales, are valued at the most recent bid
price. Securities for which the primary market is the National Association of
Securities Dealers Automated Quotations National Market System ("NASDAQ") are
valued at the NASDAQ Official Closing Price. The Funds invest in money market
mutual funds, which are valued at their NAV.
Securities, for which market quotations are not readily available, including
investments that are subject to limitations as to their sale, are valued at fair
value as determined in good faith by the Advisor in accordance with procedures
adopted by the Board of Trustees. In determining fair value, consideration is
given to market conditions, relative benchmarks and other financial data.
B. SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are recorded on the trade date. Realized gains and losses
from portfolio fund transactions are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date, net of foreign tax
withholdings. Interest income is recorded on the accrual basis.
C. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with financial institutions. In a
repurchase agreement, a Fund buys a security and the seller simultaneously
agrees to repurchase the security on a specified future date at an agreed-upon
price. The repurchase price reflects an agreed-upon interest rate during the
time the Fund's money is invested in the security. Because the security
constitutes collateral for the repurchase obligation, a repurchase agreement can
be considered a collateralized loan. The Funds follows certain procedures
designed to minimize the risks inherent in such agreements. These procedures
include effecting repurchase transactions only with large, well-capitalized and
well-established financial institutions whose condition will be continually
monitored by Rydex Global Advisors, which acts as the Funds' investment advisor
(the "Advisor"). In addition, the value of the collateral underlying the
repurchase
SEMI-ANNUAL REPORT 22
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
agreement will always be at least equal to the repurchase price, including any
accrued interest earned on the repurchase agreement. In the event of a default
or bankruptcy by a selling financial institution, the Funds will seek to
liquidate such collateral. However, the exercising of the Funds right to
liquidate such collateral could involve certain costs or delays and, to the
extent that proceeds from any sale upon a default of the obligation to
repurchase were less than the repurchase price, the Funds could suffer a loss.
It is the current policy of the Funds not to invest in repurchase agreements
that do not mature within seven days if any such investment, together with any
other illiquid assets held by the Funds, amounts to more than 15% of the Funds
net assets. The investments of the Funds in repurchase agreements, at times, may
be substantial when, in the view of the Advisor, liquidity or other
considerations so warrant. For the six months ended April 30, 2008, the Funds
had not engaged in repurchase transactions.
D. FEDERAL INCOME TAXES
The Funds policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of the
taxable income and capital gains, if any, to the shareholders within the
allowable time limits. Therefore, no provision for Federal income taxes is
required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for in-kind redemptions, income reclassifications from real
estate investment trusts ("REITs") and losses deferred due to wash sales.
For the six months ended April 30, 2008, the Funds realized net capital gains
resulting from in-kind redemptions and other transactions. Because gains from
in-kind redemptions are not taxable to the Funds, and are not distributed to
existing Fund shareholders, the gains are reclassified from accumulated net
realized gains to paid-in-capital at the end of the Funds tax year. These
reclassifications have no effect on net assets or net asset value per share. The
in-kind net capital gains for the six months ended April 30, 2008 are disclosed
in the Fund's Statement of Operations.
At April 30, 2008, the Funds had capital loss carryforwards which may be
utilized to offset any net realized capital gains expiring October 31:
<Table>
<Caption>
2013 2014 2015
------- -------- -------
Rydex S&P Equal Weight ETF.................................. $ -- $ -- --
Rydex Russell Top 50 ETF.................................... 88,468 675,404 618,363
</Table>
E. DIVIDENDS AND DISTRIBUTIONS
The Funds declare and pay dividends from net investment income and distribute
from net realized capital gains at least annually.
F. RISK AND UNCERTAINTIES
The Trust invests in various investments which are exposed to risk, such as
market risk. Due to the level of risk associated with certain investments it is
at least reasonably possible that changes in the values of investment securities
will occur in the near term and that such changes could materially affect
amounts reported in the financial statements. The Rydex Russell Top 50 ETF is a
non-diversified fund, subjecting it to a greater risk than a fund that is
diversified.
G. NEW ACCOUNTING PRONOUNCEMENTS
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet a more-likely-than-not threshold
would be recorded as a tax expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date.
Management evaluated the implications of FIN 48 and determined that all tax
positions meet the "more-likely than not" threshold. As a result, the financial
statements have not been impacted by the adoption of FIN 48. However,
management's conclusions regarding FIN 48 are subject to review and adjustment
at a later date based on factors including, but not limited to, further
implementation guidance expected from FASB, and on-going analysis of tax laws,
regulation, and interpretations thereof.
SEMI-ANNUAL REPORT 23
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
In September, 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements ("SFAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact, if any, the
adoption of SFAS 157 will have on the Funds' financial statements. Management
does not anticipate SFAS 157 will have a material impact on the Funds' financial
statements.
In March, 2008, Statement of Financial Accounting Standards No. 161,
"Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161")
was issued and is effective for fiscal years and interim periods beginning after
November 15, 2008. SFAS 161 requires enhanced disclosures about Funds'
derivative and hedging activities. Management is currently evaluating the
impact, if any, the adoption of SFAS 161 will have on the Funds' financial
statement disclosures.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor determines the composition of the portfolio of securities that must
be delivered in exchange for the issuance of Creation Units and periodically
adjusts the composition of the portfolio of the Funds to conform to changes in
the composition of the relevant index. For these services, the Advisor receives
an advisory fee at the annual rate shown below of the average daily net assets
of the Funds.
<Table>
<Caption>
ADVISORY FEE
------------
Rydex S&P Equal Weight ETF........................................... 0.40%
Rydex Russell Top 50 ETF............................................. 0.20%
</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, 2008, there were an unlimited number of no par value shares of
beneficial interest authorized. There is a minimum transaction fee per
transaction to those persons purchasing or redeeming Creation Units. An
additional charge of up to three times the standard transaction fee may be
imposed for purchases and redemptions effected outside the National Securities
Clearing Corporation usual clearing process or for cash. Such transactions are
generally permitted on an in-kind basis, with a balancing cash component to
equate the transaction to the net asset value per unit of the Fund on the
transaction date. The minimum transaction fees are:
<Table>
<Caption>
MINIMUM
TRANSACTION FEE
---------------
Rydex S&P Equal Weight ETF......................................... $2,000
Rydex Russell Top 50 ETF........................................... 500
</Table>
5. INVESTMENT TRANSACTIONS
For the six months ended April 30, 2008 the Funds had in-kind contributions and
in-kind redemptions as follows:
<Table>
<Caption>
SUBSCRIPTIONS REDEMPTIONS
--------------- ---------------
Rydex S&P Equal Weight ETF.................................. $120,874,461 $718,860,828
Rydex Russell Top 50 ETF.................................... 103,195,484 111,274,280
</Table>
SEMI-ANNUAL REPORT 24
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Purchases and sales of investment securities (excluding short-term investments,
U.S. government and government agency obligations) for the Funds were as
follows:
<Table>
<Caption>
PURCHASES SALES
--------------- ---------------
Rydex S&P Equal Weight ETF.................................. $217,595,229 $215,697,573
Rydex Russell Top 50 ETF.................................... -- 41,259
</Table>
There were no purchases or sales of U.S. government or government agency
obligations for the six months ended April 30, 2008.
The identified cost of investments in securities owned by each Fund for federal
income tax purposes was substantially the same as the cost for financial
reporting purposes. Accordingly, gross unrealized appreciation and depreciation
at April 30, 2008 were as follows:
<Table>
<Caption>
GROSS GROSS NET UNREALIZED
IDENTIFIED UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
--------------- --------------- --------------- ---------------
Rydex S&P Equal Weight ETF.................. $1,544,400,228 $90,008,322 $273,980,932 $(183,972,610)
Rydex Russell Top 50 ETF.................... 627,251,462 33,916,697 69,756,087 (35,839,390)
</Table>
6. ACQUISITION OF RYDEX INVESTMENTS AND THE DISTRIBUTOR
At the close of business on January 17, 2008, Rydex NV, Inc., comprised of Rydex
Investments, together with several other Rydex entities, was acquired by
Security Benefit Corporation ("Security Benefit"), a financial services firm
that provides a broad variety of financial programs to investors in the advisor,
banking, education, government, institutional, and qualified plan markets (the
"Transaction"). As a result of the Transaction's completion, Rydex Investments
and the Distributor are wholly-owned subsidiaries of Security Benefit. While the
Transaction has no material impact on the Funds or their shareholders, it
resulted in a change of control of Rydex Investments, which in turn caused the
termination of the investment advisory agreement between Rydex Investments and
the Funds.
A new investment advisory agreement between Rydex Investments and the Funds was
approved under substantially the same terms as the previous investment advisory
agreement (the "New Agreement"). This New Agreement was approved by
shareholders, via proxy, and took effect upon the closing of the Transaction.
The Transaction had no impact on the day-to-day operations of Rydex Investments,
the fees payable to Rydex Investments under the New Agreement, or the persons
responsible for the management of the Funds.
SEMI-ANNUAL REPORT 25
SUPPLEMENTAL INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's website at
http://www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if
applicable, during the most recent 12-month period ended June 30, is also
available, without charge and upon request, by (i) calling 1-800-820-0888; or
accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Trust's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
SEMI-ANNUAL REPORT 26
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling 1-800-820-
0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
<Table>
<Caption>
NAME, POSITION LENGTH OF SERVICE
AND AS TRUSTEE NUMBER OF FUNDS
YEAR OF BIRTH (YEAR BEGAN) OVERSEEN
- ---------------- ----------------------------------------- ----------------
CARL G. Rydex Series Funds - 2004 149
VERBONCOEUR* Rydex Variable Trust - 2004
Trustee, Rydex Dynamic Funds - 2004
President (1952) Rydex ETF Trust - 2004
</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 Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II,
Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President
of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund
Services, Inc. and Rydex Distributors, Inc. (1997 to 2000)
<Table>
---------------------
MICHAEL P. Rydex Series Funds - 2005 149
BYRUM* Rydex Variable Trust - 2005
Trustee, Vice Rydex Dynamic Funds - 2005
President and Rydex ETF Trust - 2005
Secretary (1970)
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Investment Officer of Rydex
Investments (2003 to present); Secretary of Rydex Specialized Products, LLC
(2005 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and
Rydex Dynamic Funds (2004 to present); Vice President of Rydex Series Funds
(1997 to present); Vice President of Rydex Variable Trust (1998 to present);
Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex
ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners
SPhinX Fund (2003 to 2006); President of Rydex Global Advisors (2004 to
present); Chief Operating Officer of Rydex Global Advisors and Rydex
Distributors, Inc. (2003 to 2004)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
<Table>
<Caption>
NAME, POSITION LENGTH OF SERVICE
AND AS TRUSTEE NUMBER OF FUNDS
YEAR OF BIRTH (YEAR BEGAN) OVERSEEN
- ---------------- ----------------------------------------- ----------------
JOHN O. DEMARET Rydex Series Funds - 1997 141
Trustee, Rydex Variable Trust - 1998
Chairman of the Rydex Dynamic Funds - 1999
Board (1940) Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
<Table>
---------------------
COREY A. Rydex Series Funds - 1993 141
COLEHOUR Rydex Variable Trust - 1998
Trustee (1945) Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
<Table>
---------------------
J. KENNETH Rydex Series Funds - 1995 141
DALTON Rydex Variable Trust - 1998
Trustee (1941) 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 141
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, Rydex Series Funds - 2005 141
JR. Rydex Variable Trust - 2005
Trustee (1960) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
Investments
<Table>
---------------------
PATRICK T. Rydex Series Funds - 1997 141
MCCARVILLE Rydex Variable Trust - 1998
Trustee (1942) Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
<Table>
---------------------
ROGER SOMERS Rydex Series Funds - 1993 141
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT 27
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES (CONT.)
EXECUTIVE OFFICERS
<Table>
<Caption>
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE
YEAR OF BIRTH YEARS
- ----------------------------------------- -----------------------------------------
NICK BONOS* Chief Financial Officer of Rydex
Vice President and Treasurer (1963) Specialized Products, LLC (2005 to
present); Vice President and Treasurer of
Rydex Series Funds, Rydex Variable Trust,
Rydex Dynamic Funds, and Rydex ETF Trust
(2003 to present); Senior Vice President
of Rydex Fund Services, Inc. (2003 to
present); Vice President and Treasurer of
Rydex Capital Partners SPhinX Fund (2003
to 2006); Vice President of Accounting of
Rydex Fund Services, Inc. (2000 to 2003)
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series
Chief Compliance Officer and Secretary Funds, Rydex Assistant Variable Trust,
(1966) and Rydex Dynamic Funds (2004 to
present); Assistant Secretary of Rydex
Series Funds, Rydex Variable Trust, and
Rydex Dynamic Funds (2000 to present);
Assistant Secretary of Rydex ETF Trust
(2002 to present); Vice President of
Compliance of Rydex Fund Services, Inc.
(2000 to present); Secretary of Rydex
Capital Partners SphinX Fund (2003 to
2006)
JOSEPH ARRUDA* Assistant Treasurer of Rydex Series
Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex
Dynamic Funds, Rydex ETF Trust (2006);
Vice President of Rydex Fund Services,
Inc. (2004 to present); Director of
Accounting of Rydex Fund Services, Inc.
(2003 to 2004); Vice President of Mutual
Funds, State Street Bank & Trust (2000 to
2003)
PAULA BILLOS* Controller of Rydex Series Funds, Rydex
Controller (1974) Variable Trust, Rydex Dynamic Funds,
Rydex ETF Trust (2006); Director of Fund
Administration of Rydex Fund Services,
Inc. (2001 to present)
</Table>
* Trustees and Officers of the Funds are deemed to be "interested persons" of
the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as
this person is affiliated with the Advisor.
[RYDEX INVESTMENTS LOGO] [GRAPHIC]
9601 Blackwell Road o Suite 500 o Rockville, MD 20850
www.rydexinvestments.com o 800.820.0888
ETF-SEMI-ANN-0408X1008
April 30, 2008
RYDEX ETF TRUST
SEMI-ANNUAL REPORT
RYDEX S&P 500 PURE VALUE ETF
RYDEX S&P 500 PURE GROWTH ETF
RYDEX S&P MIDCAP 400 PURE VALUE ETF
RYDEX S&P MIDCAP 400 PURE GROWTH ETF
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF
RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF
RYDEX S&P EQUAL WEIGHT ENERGY ETF
RYDEX S&P EQUAL WEIGHT FINANCIALS ETF
RYDEX S&P EQUAL WEIGHT HEALTH CARE ETF
RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF
RYDEX S&P EQUAL WEIGHT MATERIALS ETF
RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF
RYDEX S&P EQUAL WEIGHT UTILITIES ETF
[GRAPHIC] [RYDEX INVESTMENTS LOGO]
SEMI-ANNUAL REPORT 1
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<Table>
LETTER TO OUR SHAREHOLDERS............................................... 2
FEES & EXPENSES.......................................................... 4
PORTFOLIO SUMMARY........................................................ 5
SCHEDULE OF INVESTMENTS.................................................. 20
STATEMENTS OF ASSETS AND LIABILITIES..................................... 48
STATEMENTS OF OPERATIONS................................................. 51
STATEMENTS OF CHANGES IN NET ASSETS...................................... 54
FINANCIAL HIGHLIGHTS..................................................... 62
NOTES TO FINANCIAL STATEMENTS............................................ 70
SUPPLEMENTAL INFORMATION................................................. 75
</Table>
SEMI-ANNUAL REPORT 2
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER,
Rydex is a proud participant in the ETF space, having $6.1 million in ETF
assets, 31 exchange traded products and plans to introduce many more in the
future. In the last six months, we've launched six new exchange traded products
and in the past year our assets have grown more than 27%.
Because of their cost-effectiveness, transparency, convenience and
accessibility, ETFs can be a beneficial part of most investor portfolios.
However, lack of education about the products can be a barrier for many
investors. For example, a Rydex survey of individual mutual fund investors in
2007 found that more than half (53%) of investors do not know the difference
between a mutual fund and ETF and 38% don't know what an ETF is.(1) Rydex
believes that investors need to be knowledgeable about their investment
selections -- whether they choose ETFs or any other investment option. That's
why we created ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help
boost ETF knowledge for both advisors and their clients. ETF Essentials presents
information in simple, understandable language and is available via podcast
(audio downloads), print and online. It's free and can be requested on the Rydex
web site (www.rydexinvestments.com).
MARKET RECAP
The six-month period ending April 30 was a momentous one in many respects. The
U.S. financial system teetered on the brink of collapse as the ongoing crisis in
the nation's credit markets seemed to threaten the solvency of many major Wall
Street institutions. Indeed, financial market turmoil, the magnitude of which
had not been seen in decades, led to the dramatic collapse of Bear Stearns, a
powerhouse investment bank that traced its origins back to the 1920s and had
successfully weathered the Great Depression.
References to the Great Depression are appropriate since many of the emergency
actions taken by the Fed to keep the financial system afloat during this period
had their origins in that earlier crisis. The acceptance of mortgage-backed debt
as collateral, and lending to non-depository institutions in particular are
policies taken straight from the 1930s.
Most financial crises lead to the demise of at least one major financial
institution -- think of Penn Central, Continental Illinois and Long Term Capital
Management -- and this one was no exception. If there is good news here, it is
that collapses, such as Bear Stearns in March, usually signify the beginning of
the end of a financial panic. True to form, once it was clear that other major
financial institutions did not face solvency issues along the lines of Bear
Stearns, stocks soared in a classic relief rally.
Although there was a perceptible shift in sentiment at the tail end of the
period, it was not enough to reverse what was a difficult period for stocks. The
bellwether S&P 500 fell nearly 10% as investors ran to the safety of U.S.
Treasury securities, pulling long-term interest rates to five-year lows in the
process. The Fed slashed interest rates at the fastest pace in history, dropping
the widely watched Fed Funds target rate to 2.00% from 4.50% in five sweeping
moves. In this crisis environment the Fed, in conjunction with other central
banks, continuously pumped hundreds of billions of dollars of liquidity into the
global financial system. In fact, government at all levels was in full crisis
prevention mode. Congress and the Bush administration forged a $168 billion
fiscal stimulus plan with lightning speed and the nation's home lending
industry, in the form of Fannie Mae and Freddie Mac, was restructured to help
relieve pressure on the beleaguered housing market.
Risk exposures of all types were sold indiscriminately, hitting financials,
technology and consumer discretionary stocks particularly hard. Aggravated by a
weakening job market, falling housing values and rising inflation, consumer
sentiment levels hit multi-year lows. With all the ingredients for a recession
firmly in place -- shrinking payrolls, declining retail sales, curtailed capital
spending plans and falling wealth levels -- economic activity essentially
crawled to a halt. The cheap U.S. dollar fueled a boom in exports, which kept
economic growth just barely in the black.
One outgrowth of the dollar's descent in foreign exchange markets was a
corresponding rise in commodity prices. The speculative boom in commodity prices
reached a frenzy, putting commodity index levels at 10-year highs. Much of that
was driven by oil, the price of which rose in excess of 20% and broke the
$100/bbl. level in early March.
- ----------
(1) Rydex Investments in conjunction with e-Rewards Market Research
conducted this survey of individual investors in July 2007. The survey was
conducted with 500 individual mutual fund investors. All participants had
investable assets of more than $100K, with 150 of the participants having
investable assets of more than $500K. e-Rewards Market Research is not
affiliated with Rydex Investments. Although Rydex Investments believes the
information from this organization is correct, it cannot, and does not,
guarantee or warrant the completeness or suitability of this information.
SEMI-ANNUAL REPORT 3
- --------------------------------------------------------------------------------
An implicit part of the sentiment shift observed at the end of the quarter was
the notion that the Fed is no longer part of the problem but rather part of the
solution. In retrospect it appears that the Fed's policy responses throughout
the crisis have been effective and appropriate.
We appreciate the trust you have placed in our firm's quality and integrity by
investing with us. It is our goal to continue to offer you innovative ETF
choices to meet your investment needs.
Sincerely,
/s/ DAVID C. REILLY, CFA
David C. Reilly, CFA
Director of Portfolio Strategies
SEMI-ANNUAL REPORT 4
- --------------------------------------------------------------------------------
SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Rydex ETF Trust, you incur transaction costs such as
creation and redemption fees or brokerage charges, and ongoing costs including
advisory fees and, if applicable, distribution fees. All other Trust expenses
are paid by the advisor. This Example is intended to help you understand your
ongoing costs (in dollars) of investing in a Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The example in the table is based on an investment of $1,000 invested on
November 1, 2007 and held for the six months ended April 30, 2008.
ACTUAL EXPENSES
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you incurred over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
table under the heading entitled "Expenses Paid During the Six-Month Period" to
estimate the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second table below provides information about hypothetical account values
and hypothetical expenses based on a Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not a Fund's actual
return. Thus, you should not use the hypothetical account values and expenses to
estimate the actual ending account balance or your expenses for the period.
Rather, these figures are provided to enable you to compare the ongoing costs of
investing in a Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as creation
and redemption fees, or brokerage charges. Therefore, the second table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING
VALUE VALUE SIX-MONTH PERIOD *
11/1/2007 4/30/2008 11/1/07 TO 4/30/08
--------- --------- ------------------
ACTUAL
Rydex S&P 500 Pure Value ETF.......................... $1,000.00 $ 846.40 $1.61
Rydex S&P 500 Pure Growth ETF......................... $1,000.00 $ 926.70 $1.68
Rydex S&P MidCap 400 Pure Value ETF................... $1,000.00 $ 906.20 $1.66
Rydex S&P MidCap 400 Pure Growth ETF.................. $1,000.00 $ 923.10 $1.67
Rydex S&P SmallCap 600 Pure Value ETF................. $1,000.00 $ 852.40 $1.61
Rydex S&P SmallCap 600 Pure Growth ETF................ $1,000.00 $ 859.30 $1.62
Rydex S&P Equal Weight Consumer Discretionary ETF..... $1,000.00 $ 868.20 $2.32
Rydex S&P Equal Weight Consumer Staples ETF........... $1,000.00 $ 961.10 $2.44
Rydex S&P Equal Weight Energy ETF..................... $1,000.00 $1,091.10 $2.60
Rydex S&P Equal Weight Financials ETF................. $1,000.00 $ 805.20 $2.24
Rydex S&P Equal Weight Health Care ETF................ $1,000.00 $ 915.50 $2.38
Rydex S&P Equal Weight Industrials ETF................ $1,000.00 $ 973.90 $2.45
Rydex S&P Equal Weight Materials ETF.................. $1,000.00 $ 941.00 $2.41
Rydex S&P Equal Weight Technology ETF................. $1,000.00 $ 854.70 $2.31
Rydex S&P Equal Weight Utilities ETF.................. $1,000.00 $ 907.00 $2.37
HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES)
Rydex S&P 500 Pure Value ETF.......................... $1,000.00 $1,023.12 $1.76
Rydex S&P 500 Pure Growth ETF......................... $1,000.00 $1,023.12 $1.76
Rydex S&P MidCap 400 Pure Value ETF................... $1,000.00 $1,023.12 $1.76
Rydex S&P MidCap 400 Pure Growth ETF.................. $1,000.00 $1,023.12 $1.76
Rydex S&P SmallCap 600 Pure Value ETF................. $1,000.00 $1,023.12 $1.76
Rydex S&P SmallCap 600 Pure Growth ETF................ $1,000.00 $1,023.12 $1.76
Rydex S&P Equal Weight Consumer Discretionary ETF..... $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Consumer Staples ETF........... $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Energy ETF..................... $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Financials ETF................. $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Health Care ETF................ $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Industrials ETF................ $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Materials ETF.................. $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Technology ETF................. $1,000.00 $1,022.38 $2.51
Rydex S&P Equal Weight Utilities ETF.................. $1,000.00 $1,022.38 $2.51
</Table>
- --------
* Expenses are equal to the Fund's annualized expense ratio of 0.35%, 0.35%,
0.35%, 0.35%, 0.35%, 0.35%, 0.50%, 0.50%, 0.50%, 0.50%, 0.50%, 0.50%,
0.50%, 0.50% and 0.50% respectively, multiplied by the average account
value of the period, multiplied by days in the period, divided by 366.
SEMI-ANNUAL REPORT 5
Rydex S&P 500 Pure Value ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
D.R. HORTON, INC. 2.66%
KB HOME 2.49%
LENNAR CORP. -- CLASS A 2.37%
DILLARD'S, INC. -- CLASS A 2.28%
SPECTRA ENERGY CORP. 1.92%
OFFICEMAX, INC. 1.82%
TYSON FOODS, INC. -- CLASS A 1.71%
WASHINGTON MUTUAL, INC. 1.71%
RYDER SYSTEM, INC. 1.61%
JONES APPAREL GROUP, INC. 1.59%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 33.35
Consumer Discretionary 27.60
Utilities 14.17
Industrials 4.71
Consumer Staples 4.57
Materials 4.48
Health Care 3.75
Telecommunication Services 3.09
Information Technology 2.35
Energy 1.93
</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 S&P 500 Pure Growth ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
UNITED STATES STEEL CORP. 1.55%
COACH, INC. 1.40%
XTO ENERGY, INC. 1.31%
CB RICHARD ELLIS GROUP, INC. -- CLASS A 1.31%
SEARS HOLDINGS CORP. 1.31%
NUCOR CORP. 1.29%
EOG RESOURCES, INC. 1.21%
YAHOO!, INC. 1.20%
GOOGLE, INC. -- CLASS A 1.17%
ZIMMER HOLDINGS, INC. 1.15%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Consumer Discretionary 19.20
Information Technology 17.67
Health Care 15.97
Energy 13.67
Financials 9.19
Industrials 8.89
Consumer Staples 7.04
Materials 6.80
Utilities 1.57
</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 Midcap 400 Pure Value ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
ARVINMERITOR, INC. 3.26%
FURNITURE BRANDS INTERNATIONAL, INC. 3.03%
KELLY SERVICES, INC. 2.24%
FIDELITY NATIONAL FINANCIAL, INC. -- CLASS A 2.17%
RYLAND GROUP, INC. 2.10%
YRC WORLDWIDE, INC. 2.00%
CHARMING SHOPPES, INC. 1.74%
AVIS BUDGET GROUP, INC. 1.72%
IMATION CORP. 1.71%
HEALTH MANAGEMENT ASSOCIATES, INC. -- CLASS A 1.62%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 29.83
Consumer Discretionary 24.56
Industrials 12.98
Utilities 12.75
Information Technology 6.94
Materials 6.90
Health Care 3.39
Consumer Staples 2.65
</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 MIDCAP 400 PURE GROWTH ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
ENCORE ACQUISITION CO. 2.51%
CLEVELAND-CLIFFS, INC. 2.42%
AEROPOSTALE, INC. 1.89%
PSYCHIATRIC SOLUTIONS, INC. 1.87%
NVR, INC. 1.86%
DIGITAL RIVER, INC. 1.76%
STEEL DYNAMICS, INC. 1.76%
URBAN OUTFITTERS, INC. 1.67%
JOY GLOBAL, INC. 1.65%
CIMAREX ENERGY CO. 1.63%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Consumer Discretionary 26.51
Health Care 19.65
Information Technology 16.00
Industrials 11.07
Energy 10.20
Materials 7.59
Financials 5.20
Consumer Staples 3.78
</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 SMALLCAP 600 PURE VALUE ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
FINISH LINE, INC. -- CLASS A 2.91%
STEIN MART, INC. 1.71%
BASSETT FURNITURE INDUSTRIES, INC. 1.70%
ARKANSAS BEST CORP. 1.66%
WABASH NATIONAL CORP. 1.52%
M/I HOMES, INC. 1.42%
FIRST BANCORP 1.42%
LANDAMERICA FINANCIAL GROUP, INC. 1.36%
STEWART INFORMATION SERVICES CORP. 1.34%
GEVITY HR, INC. 1.30%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Consumer Discretionary 30.28
Financials 29.06
Industrials 13.51
Materials 7.50
Utilities 6.92
Information Technology 6.17
Consumer Staples 5.01
Health Care 1.55
</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 SMALLCAP 600 PURE GROWTH ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
LIFECELL CORP. 1.50%
BANKRATE, INC. 1.45%
HEALTHEXTRAS, INC. 1.42%
MARTEK BIOSCIENCES CORP. 1.40%
BASIC ENERGY SERVICES, INC. 1.36%
MANNATECH, INC. 1.32%
J2 GLOBAL COMMUNICATIONS, INC. 1.30%
PANERA BREAD CO. -- CLASS A 1.27%
UNIT CORP. 1.27%
WRIGHT EXPRESS CORP. 1.27%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Consumer Discretionary 25.55
Information Technology 23.77
Health Care 18.69
Energy 10.22
Financials 8.42
Industrials 7.31
Consumer Staples 3.12
Materials 2.92
</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 Equal Weight Consumer Discretionary ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
FORD MOTOR CO. 1.67%
HASBRO, INC. 1.44%
BIG LOTS, INC. 1.42%
WENDY'S INTERNATIONAL, INC. 1.36%
COACH, INC. 1.36%
SNAP-ON, INC. 1.35%
GENERAL MOTORS CORP. 1.34%
EXPEDIA, INC. 1.34%
TIFFANY & CO. 1.30%
DILLARD'S, INC. -- CLASS A 1.30%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Specialty Retail 19.38
Media 17.87
Household Durables 14.56
Hotels, Restaurants & Leisure 11.61
Multiline Retail 10.98
Textiles, Apparel & Luxury Goods 7.05
Leisure Equipment & Products 4.81
Automobiles 4.18
Internet & Catalog Retail 3.74
Auto Components 2.40
Diversified Consumer Services 2.25
Distributors 1.17
</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 12
Rydex S&P Equal Weight Consumer Staples ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
WM. WRIGLEY JR. CO. 2.99%
SUPERVALU, INC. 2.84%
DEAN FOODS CO. 2.83%
COSTCO WHOLESALE CORP. 2.78%
SARA LEE CORP. 2.70%
WAL-MART STORES, INC. 2.69%
SAFEWAY, INC. 2.64%
ARCHER-DANIELS-MIDLAND CO. 2.64%
KROGER CO. 2.61%
ANHEUSER-BUSCH COS., INC. 2.60%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Food Products 33.85
Food & Staples Retailing 23.46
Beverages 19.45
Household Products 9.32
Tobacco 9.02
Personal Products 4.90
</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 13
Rydex S&P Equal Weight Energy ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
NATIONAL-OILWELL VARCO, INC. 3.16%
CONSOL ENERGY, INC. 3.09%
PEABODY ENERGY CORP. 3.04%
WEATHERFORD INTERNATIONAL, LTD. 3.03%
HALLIBURTON CO. 3.03%
CAMERON INTERNATIONAL CORP. 3.01%
SMITH INTERNATIONAL, INC. 3.01%
APACHE CORP. 2.98%
NOBLE ENERGY, INC. 2.97%
SCHLUMBERGER, LTD. 2.94%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Oil, Gas & Consumable Fuels 62.42
Energy Equipment & Services 37.58
</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 Financials ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
BEAR STEARNS COS., INC. 1.95%
SAFECO CORP. 1.61%
INTERCONTINENTALEXCHANGE, INC. 1.31%
CIT GROUP, INC. 1.29%
CB RICHARD ELLIS GROUP, INC. -- CLASS A 1.28%
JANUS CAPITAL GROUP, INC. 1.26%
WASHINGTON MUTUAL, INC. 1.26%
T. ROWE PRICE GROUP, INC. 1.25%
CITIGROUP, INC. 1.22%
GENERAL GROWTH PROPERTIES, INC. 1.21%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Insurance 26.33
Capital Markets 19.39
Commercial Banks 15.74
Real Estate Investment Trusts (REITs) 15.38
Diversified Financial Services 10.36
Thrifts & Mortgage Finance 6.93
Consumer Finance 4.59
Real Estate Management & Development 1.28
</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 Health Care ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
TENET HEALTHCARE CORP. 2.34%
MYLAN LABORATORIES, INC. 2.24%
IMS HEALTH, INC. 2.21%
WATERS CORP. 2.20%
EXPRESS SCRIPTS, INC. 2.17%
PERKINELMER, INC. 2.17%
QUEST DIAGNOSTICS, INC. 2.11%
MEDCO HEALTH SOLUTIONS, INC. 2.10%
COVIDIEN, LTD. 2.06%
WELLPOINT, INC. 2.06%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Health Care Providers & Services 29.78
Pharmaceuticals 26.71
Health Care Equipment & Supplies 21.12
Life Sciences Tools & Services 10.29
Biotechnology 9.89
Health Care Technology 2.21
</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 Industrials ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
CUMMINS, INC. 2.11%
JACOBS ENGINEERING GROUP, INC. 2.04%
PARKER-HANNIFIN CORP. 2.02%
PRECISION CASTPARTS CORP. 2.01%
ALLIED WASTE INDUSTRIES, INC. 1.99%
ITT CORP. 1.98%
DOVER CORP. 1.98%
TEREX CORP. 1.94%
UNION PACIFIC CORP. 1.94%
FLUOR CORP. 1.93%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Machinery 25.47
Aerospace & Defense 19.61
Commercial Services & Supplies 15.61
Road & Rail 9.39
Air Freight & Logistics 7.16
Industrial Conglomerates 6.69
Electrical Equipment 5.24
Construction & Engineering 3.99
Building Products 3.22
Trading Companies & Distributors 1.82
Airlines 1.80
</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 Materials ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
UNITED STATES STEEL CORP. 4.38%
BALL CORP. 4.15%
FREEPORT-MCMORAN COPPER & GOLD, INC. 4.13%
EASTMAN CHEMICAL CO. 3.88%
TITANIUM METALS CORP. 3.84%
MONSANTO CO. 3.84%
ASHLAND, INC. 3.80%
VULCAN MATERIALS CO. 3.75%
AIR PRODUCTS & CHEMICALS, INC. 3.72%
PRAXAIR, INC. 3.72%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Chemicals 46.51
Metals & Mining 25.47
Containers & Packaging 14.36
Paper & Forest Products 9.90
Construction Materials 3.76
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Industry Allocations are expressed as a percentage of the Fund's
investments market value. These percentages may change over time.
SEMI-ANNUAL REPORT 18
Rydex S&P Equal Weight Technology ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
BROADCOM CORP. -- CLASS A 2.00%
GOOGLE, INC. -- CLASS A 1.76%
SANDISK CORP. 1.75%
APPLE, INC. 1.72%
MICRON TECHNOLOGY, INC. 1.71%
MOLEX, INC. 1.62%
NETAPP, INC. 1.60%
LSI LOGIC CORP. 1.60%
KLA-TENCOR CORP. 1.60%
AKAMAI TECHNOLOGIES, INC. 1.58%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Semiconductors & Semiconductor Equipment 26.00
IT Services 16.69
Software 16.28
Computers & Peripherals 15.46
Communications Equipment 11.23
Internet Software & Services 7.48
Electronic Equipment & Instruments 5.66
Office Electronics 1.20
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Industry Allocations are expressed as a percentage of the Fund's
investments market value. These percentages may change over time.
SEMI-ANNUAL REPORT 19
Rydex S&P Equal Weight Utilities ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
SPRINT NEXTEL CORP. 3.23%
QUESTAR CORP. 2.69%
SEMPRA ENERGY 2.67%
DYNEGY, INC. -- CLASS A 2.63%
QWEST COMMUNICATIONS INTERNATIONAL, INC. 2.63%
ALLEGHENY ENERGY, INC. 2.59%
AMERICAN TOWER CORP. -- CLASS A 2.59%
FIRSTENERGY CORP. 2.57%
AMERICAN ELECTRIC POWER CO., INC. 2.57%
FPL GROUP, INC. 2.56%
- ------------------------------------------------------------------------------------
</Table>
INDUSTRY ALLOCATIONS*
(PIE CHART)
<Table>
Electric Utilities 34.59
Multi-Utilities 29.78
Diversified Telecommunication Services 17.11
Independent Power Producers & Energy
Traders 7.53
Wireless Telecommunication Services 5.83
Gas Utilities 5.16
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Industry Allocations are expressed as a percentage of the Fund's
investments market value. These percentages may change over time.
SEMI-ANNUAL REPORT 20
RYDEX S&P 500 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.8%
AEROSPACE & DEFENSE 0.3%
Northrop Grumman Corp. ......................... 1,110 $81,663
-----------
TOTAL AEROSPACE & DEFENSE 81,663
-----------
AUTOMOBILES 1.1%
Ford Motor Co.*................................. 35,188 290,653
-----------
TOTAL AUTOMOBILES 290,653
-----------
BUILDING PRODUCTS 0.7%
Masco Corp. .................................... 10,846 197,506
-----------
TOTAL BUILDING PRODUCTS 197,506
-----------
CAPITAL MARKETS 3.8%
American Capital Strategies, Ltd. .............. 6,758 214,567
Bear Stearns Cos., Inc. ........................ 2,399 25,741
E*TRADE Financial Corp.*........................ 99,853 397,415
Lehman Brothers Holdings, Inc. ................. 1,490 65,918
Merrill Lynch & Co., Inc. ...................... 2,659 132,498
Morgan Stanley.................................. 3,859 187,547
-----------
TOTAL CAPITAL MARKETS 1,023,686
-----------
CHEMICALS 1.9%
Ashland, Inc. .................................. 6,318 334,980
Dow Chemical Co. ............................... 4,638 186,216
-----------
TOTAL CHEMICALS 521,196
-----------
COMMERCIAL BANKS 10.9%
BB&T Corp. ..................................... 6,678 228,989
Comerica, Inc. ................................. 6,068 210,742
Fifth Third Bancorp............................. 7,507 160,875
First Horizon National Corp. ................... 18,933 204,476
Huntington Bancshares, Inc. .................... 19,840 186,298
KeyCorp......................................... 12,477 301,070
M&T Bank Corp. ................................. 1,330 123,996
Marshall & Ilsley Corp. ........................ 8,067 201,514
National City Corp. ............................ 24,055 151,546
PNC Financial Services Group, Inc. ............. 1,379 95,634
Regions Financial Corp. ........................ 12,796 280,488
SunTrust Banks, Inc. ........................... 2,909 162,177
U.S. Bancorp.................................... 4,078 138,203
Wachovia Corp. ................................. 7,628 222,356
Wells Fargo & Co. .............................. 3,828 113,883
Zions Bancorp................................... 3,709 171,912
-----------
TOTAL COMMERCIAL BANKS 2,954,159
-----------
COMMERCIAL SERVICES & SUPPLIES 1.3%
Allied Waste Industries, Inc.*.................. 12,825 158,517
Avery Dennison Corp. ........................... 1,759 84,766
R.R. Donnelley & Sons Co. ...................... 3,589 109,967
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 353,250
-----------
CONSUMER FINANCE 0.5%
Capital One Financial Corp. .................... 2,729 144,637
-----------
TOTAL CONSUMER FINANCE 144,637
-----------
CONTAINERS & PACKAGING 0.6%
Bemis Co., Inc. ................................ 6,148 161,692
-----------
TOTAL CONTAINERS & PACKAGING 161,692
-----------
DIVERSIFIED FINANCIAL SERVICES 3.2%
Bank of America Corp. .......................... 5,838 219,159
CIT Group, Inc. ................................ 19,943 217,179
Citigroup, Inc. ................................ 9,337 235,946
JPMorgan Chase & Co. ........................... 4,118 196,223
-----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 868,507
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES 2.6%
AT&T, Inc. ..................................... 2,789 107,962
Citizens Communications Co. .................... 14,235 152,599
Embarq Corp. ................................... 3,819 158,756
Verizon Communications, Inc. ................... 4,058 156,152
Windstream Corp. ............................... 10,526 123,575
-----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 699,044
-----------
ELECTRIC UTILITIES 4.5%
American Electric Power Co., Inc. .............. 2,949 131,614
Duke Energy Corp. .............................. 14,435 264,305
Pepco Holdings, Inc. ........................... 8,767 218,386
Pinnacle West Capital Corp. .................... 7,077 240,193
Progress Energy, Inc. .......................... 5,778 242,618
Southern Co. ................................... 3,629 135,108
-----------
TOTAL ELECTRIC UTILITIES 1,232,224
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.8%
Jabil Circuit, Inc. ............................ 20,072 218,383
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 218,383
-----------
FOOD & STAPLES RETAILING 2.0%
Kroger Co. ..................................... 5,178 141,101
Safeway, Inc. .................................. 3,009 95,084
SUPERVALU, Inc. ................................ 9,117 301,773
-----------
TOTAL FOOD & STAPLES RETAILING 537,958
-----------
FOOD PRODUCTS 2.2%
Dean Foods Co. ................................. 6,038 140,323
Tyson Foods, Inc. -- Class A.................... 26,141 465,310
-----------
TOTAL FOOD PRODUCTS 605,633
-----------
GAS UTILITIES 0.7%
Nicor, Inc. .................................... 5,798 203,626
-----------
TOTAL GAS UTILITIES 203,626
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 0.5%
Covidien, Ltd. ................................. 2,719 126,950
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 126,950
-----------
HEALTH CARE PROVIDERS & SERVICES 2.8%
AmerisourceBergen Corp. ........................ 8,077 327,522
Cardinal Health, Inc. .......................... 2,509 130,644
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 21
RYDEX S&P 500 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
McKesson Corp. ................................. 2,709 $141,193
Tenet Healthcare Corp.*......................... 27,090 173,376
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 772,735
-----------
HOTELS, RESTAURANTS & LEISURE 0.3%
Carnival Corp. ................................. 2,109 84,719
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 84,719
-----------
HOUSEHOLD DURABLES 10.3%
Centex Corp. ................................... 14,695 305,950
D.R. Horton, Inc. .............................. 46,684 723,135
KB HOME......................................... 30,110 677,475
Leggett & Platt, Inc. .......................... 12,985 215,551
Lennar Corp. -- Class A......................... 34,998 644,663
Whirlpool Corp. ................................ 3,109 226,273
-----------
TOTAL HOUSEHOLD DURABLES 2,793,047
-----------
INDUSTRIAL CONGLOMERATES 0.8%
Tyco International, Ltd. ....................... 4,448 208,122
-----------
TOTAL INDUSTRIAL CONGLOMERATES 208,122
-----------
INSURANCE 6.6%
ACE, Ltd. ...................................... 1,940 116,963
Allstate Corp. ................................. 4,888 246,160
Ambac Financial Group, Inc. .................... 11,196 51,838
Chubb Corp. .................................... 1,719 91,055
Cincinnati Financial Corp. ..................... 4,818 172,966
Genworth Financial, Inc. -- Class A............. 7,037 162,273
Hartford Financial Services Group, Inc. ........ 1,549 110,397
Lincoln National Corp. ......................... 2,419 130,045
Marsh & McLennan Cos., Inc. .................... 6,488 179,004
MBIA, Inc. ..................................... 16,734 174,034
Travelers Cos., Inc. ........................... 3,808 191,923
XL Capital, Ltd. -- Class A..................... 5,188 181,009
-----------
TOTAL INSURANCE 1,807,667
-----------
IT SERVICES 0.8%
Electronic Data Systems Corp. .................. 11,616 215,593
-----------
TOTAL IT SERVICES 215,593
-----------
LEISURE EQUIPMENT & PRODUCTS 2.0%
Brunswick Corp. ................................ 20,103 335,318
Eastman Kodak Co. .............................. 7,317 130,901
Mattel, Inc. ................................... 4,788 89,775
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 555,994
-----------
MEDIA 3.3%
CBS Corp. -- Class B............................ 9,287 214,251
Gannett Co., Inc. .............................. 8,657 247,763
New York Times Co. -- Class A................... 16,324 318,318
Time Warner, Inc. .............................. 7,597 112,816
-----------
TOTAL MEDIA 893,148
-----------
MULTI-UTILITIES 8.9%
Ameren Corp. ................................... 3,869 175,498
CenterPoint Energy, Inc. ....................... 9,766 148,638
CMS Energy Corp. ............................... 8,017 116,888
Consolidated Edison, Inc. ...................... 5,518 229,549
Dominion Resources, Inc. ....................... 2,259 98,018
DTE Energy Co. ................................. 7,487 301,801
Integrys Energy Group, Inc. .................... 8,367 400,696
NiSource, Inc. ................................. 21,982 393,478
PG&E Corp. ..................................... 3,019 120,760
TECO Energy, Inc. .............................. 14,474 231,729
Xcel Energy, Inc. .............................. 9,367 194,833
-----------
TOTAL MULTI-UTILITIES 2,411,888
-----------
MULTILINE RETAIL 4.1%
Big Lots, Inc.*................................. 5,718 154,557
Dillard's, Inc. -- Class A...................... 30,349 619,120
J.C. Penney Co., Inc. .......................... 2,939 124,907
Macy's Inc. .................................... 8,627 218,177
-----------
TOTAL MULTILINE RETAIL 1,116,761
-----------
OIL, GAS & CONSUMABLE FUELS 1.9%
Spectra Energy Corp. ........................... 21,163 522,726
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 522,726
-----------
PAPER & FOREST PRODUCTS 2.0%
International Paper Co. ........................ 7,867 205,879
MeadWestvaco Corp. ............................. 3,809 100,177
Weyerhaeuser Co. ............................... 3,579 228,627
-----------
TOTAL PAPER & FOREST PRODUCTS 534,683
-----------
PHARMACEUTICALS 0.4%
Pfizer, Inc. ................................... 5,838 117,402
-----------
TOTAL PHARMACEUTICALS 117,402
-----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 3.6%
Apartment Investment & Management Co. -- Class
A............................................ 6,250 231,125
Developers Diversified Realty Corp. ............ 3,659 157,154
Equity Residential Properties Trust............. 4,818 200,043
General Growth Properties, Inc. ................ 2,559 104,817
HCP, Inc. ...................................... 4,541 162,114
Host Hotels & Resorts, Inc. .................... 7,787 133,936
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 989,189
-----------
ROAD & RAIL 1.6%
Ryder System, Inc. ............................. 6,388 437,386
-----------
TOTAL ROAD & RAIL 437,386
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.8%
Micron Technology, Inc.*........................ 26,600 205,352
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 205,352
-----------
SPECIALTY RETAIL 4.5%
AutoNation, Inc.*............................... 25,991 416,116
Limited Brands, Inc. ........................... 7,607 140,881
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 22
RYDEX S&P 500 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Office Depot, Inc.*............................. 12,985 $164,650
OfficeMax, Inc. ................................ 27,040 494,021
-----------
TOTAL SPECIALTY RETAIL 1,215,668
-----------
TEXTILES, APPAREL & LUXURY GOODS 2.0%
Jones Apparel Group, Inc. ...................... 27,370 433,267
Liz Claiborne, Inc. ............................ 6,228 110,173
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 543,440
-----------
THRIFTS & MORTGAGE FINANCE 4.6%
Countrywide Financial Corp. .................... 46,794 270,469
Federal Home Loan Mortgage Corp. ............... 14,335 357,085
Sovereign Bancorp, Inc. ........................ 23,132 172,796
Washington Mutual, Inc. ........................ 37,837 465,017
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 1,265,367
-----------
TOBACCO 0.4%
Reynolds American, Inc. ........................ 1,820 98,007
-----------
TOTAL TOBACCO 98,007
-----------
WIRELESS TELECOMMUNICATION SERVICES 0.5%
Sprint Nextel Corp. ............................ 17,364 138,738
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 138,738
-----------
TOTAL COMMON STOCKS
(Cost $32,933,545) 27,148,399
-----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 19,708 19,708
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $19,708) 19,708
-----------
TOTAL INVESTMENTS 99.9%
(Cost $32,953,253) 27,168,107
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 24,946
-----------
NET ASSETS--100.0% $27,193,053
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 23
RYDEX S&P 500 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.3%
AEROSPACE & DEFENSE 2.2%
General Dynamics Corp. ......................... 2,670 $241,421
L-3 Communications Holdings, Inc. .............. 2,690 299,801
Lockheed Martin Corp. .......................... 2,690 285,248
Rockwell Collins, Inc. ......................... 4,421 279,009
-----------
TOTAL AEROSPACE & DEFENSE 1,105,479
-----------
AIR FREIGHT & LOGISTICS 1.3%
C.H. Robinson Worldwide, Inc. .................. 4,780 299,611
Expeditors International of Washington, Inc. ... 7,631 355,528
-----------
TOTAL AIR FREIGHT & LOGISTICS 655,139
-----------
AUTO COMPONENTS 0.9%
Goodyear Tire & Rubber Co.*..................... 16,221 434,398
-----------
TOTAL AUTO COMPONENTS 434,398
-----------
AUTOMOBILES 0.7%
Harley-Davidson, Inc. .......................... 8,691 332,431
-----------
TOTAL AUTOMOBILES 332,431
-----------
BEVERAGES 1.6%
Anheuser-Busch Cos., Inc. ...................... 6,270 308,484
Pepsi Bottling Group, Inc. ..................... 8,021 270,388
PepsiCo, Inc. .................................. 3,100 212,443
-----------
TOTAL BEVERAGES 791,315
-----------
BIOTECHNOLOGY 3.2%
Amgen, Inc.*.................................... 7,421 310,717
Biogen Idec, Inc.*.............................. 5,440 330,154
Celgene Corp.*.................................. 5,300 329,342
Genzyme Corp.*.................................. 2,630 185,020
Gilead Sciences, Inc.*.......................... 8,071 417,755
-----------
TOTAL BIOTECHNOLOGY 1,572,988
-----------
BUILDING PRODUCTS 0.7%
Trane, Inc. .................................... 7,310 339,988
-----------
TOTAL BUILDING PRODUCTS 339,988
-----------
CAPITAL MARKETS 0.9%
Federated Investors, Inc. -- Class B............ 8,121 271,891
Franklin Resources, Inc. ....................... 1,870 177,931
-----------
TOTAL CAPITAL MARKETS 449,822
-----------
CHEMICALS 0.9%
Ecolab, Inc. ................................... 4,701 216,058
Sigma-Aldrich Corp. ............................ 4,200 239,484
-----------
TOTAL CHEMICALS 455,542
-----------
COMMERCIAL SERVICES & SUPPLIES 1.0%
Equifax, Inc. .................................. 5,820 222,731
Pitney Bowes, Inc. ............................. 7,080 255,659
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 478,390
-----------
COMMUNICATIONS EQUIPMENT 1.8%
Cisco Systems, Inc.*............................ 12,181 312,321
Motorola, Inc. ................................. 22,132 220,434
QUALCOMM, Inc. ................................. 8,431 364,135
-----------
TOTAL COMMUNICATIONS EQUIPMENT 896,890
-----------
COMPUTERS & PERIPHERALS 3.8%
Apple, Inc.*.................................... 2,380 414,001
Dell, Inc.*..................................... 17,921 333,868
Lexmark International, Inc. -- Class A*......... 10,231 321,151
NetApp, Inc.*................................... 10,851 262,594
QLogic Corp.*................................... 14,591 232,873
SanDisk Corp.*.................................. 11,391 308,582
-----------
TOTAL COMPUTERS & PERIPHERALS 1,873,069
-----------
CONSTRUCTION & ENGINEERING 0.3%
Jacobs Engineering Group, Inc.*................. 1,630 140,718
-----------
TOTAL CONSTRUCTION & ENGINEERING 140,718
-----------
CONSUMER FINANCE 1.2%
American Express Co. ........................... 4,000 192,080
SLM Corp.*...................................... 21,482 398,061
-----------
TOTAL CONSUMER FINANCE 590,141
-----------
CONTAINERS & PACKAGING 1.4%
Ball Corp. ..................................... 9,371 503,973
Pactiv Corp.*................................... 7,080 168,433
-----------
TOTAL CONTAINERS & PACKAGING 672,406
-----------
DIVERSIFIED CONSUMER SERVICES 1.6%
Apollo Group, Inc. -- Class A*.................. 7,631 388,418
H&R Block, Inc. ................................ 17,591 384,715
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 773,133
-----------
DIVERSIFIED FINANCIAL SERVICES 3.7%
CME Group, Inc. ................................ 630 288,194
IntercontinentalExchange, Inc.*................. 3,210 498,031
Leucadia National Corp. ........................ 7,670 392,857
Moody's Corp. .................................. 14,511 536,327
NYSE Euronext................................... 2,010 132,861
-----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 1,848,270
-----------
ELECTRICAL EQUIPMENT 0.3%
Rockwell Automation, Inc. ...................... 2,920 158,352
-----------
TOTAL ELECTRICAL EQUIPMENT 158,352
-----------
ENERGY EQUIPMENT & SERVICES 4.1%
Baker Hughes, Inc. ............................. 2,150 173,892
BJ Services Co. ................................ 11,921 337,007
Cameron International Corp.*.................... 3,260 160,490
Halliburton Co. ................................ 8,051 369,621
Schlumberger, Ltd. ............................. 4,000 402,200
Smith International, Inc. ...................... 3,300 252,483
Transocean, Inc.*............................... 2,320 342,107
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 2,037,800
-----------
FOOD PRODUCTS 2.3%
Campbell Soup Co. .............................. 7,901 274,955
Hershey Co. .................................... 8,001 299,077
Kellogg Co. .................................... 5,880 300,880
Wm. Wrigley Jr. Co. ............................ 3,550 270,368
-----------
TOTAL FOOD PRODUCTS 1,145,280
-----------
GAS UTILITIES 0.5%
Questar Corp. .................................. 4,200 260,526
-----------
TOTAL GAS UTILITIES 260,526
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 24
RYDEX S&P 500 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES 5.4%
Becton, Dickinson & Co. ........................ 2,400 $214,560
C.R. Bard, Inc. ................................ 2,310 217,533
Hospira, Inc.*.................................. 6,651 273,689
Medtronic, Inc. ................................ 6,390 311,065
St Jude Medical, Inc.*.......................... 8,371 366,482
Stryker Corp. .................................. 4,330 280,714
Varian Medical Systems, Inc.*................... 8,721 408,840
Zimmer Holdings, Inc.*.......................... 7,691 570,365
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 2,643,248
-----------
HEALTH CARE PROVIDERS & SERVICES 3.9%
Coventry Health Care, Inc.*..................... 7,490 335,028
Express Scripts, Inc.*.......................... 7,071 495,111
Laboratory Corp. of America Holdings*........... 3,960 299,455
Patterson Cos., Inc.*........................... 9,561 326,986
Quest Diagnostics, Inc. ........................ 4,910 246,384
UnitedHealth Group, Inc. ....................... 7,441 242,800
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,945,764
-----------
HEALTH CARE TECHNOLOGY 0.9%
IMS Health, Inc. ............................... 17,231 426,467
-----------
TOTAL HEALTH CARE TECHNOLOGY 426,467
-----------
HOTELS, RESTAURANTS & LEISURE 2.6%
Darden Restaurants, Inc. ....................... 11,301 402,090
International Game Technology................... 6,171 214,380
Starbucks Corp.*................................ 20,172 327,392
Yum! Brands, Inc. .............................. 8,871 360,872
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,304,734
-----------
HOUSEHOLD DURABLES 1.1%
Black & Decker Corp. ........................... 5,210 341,932
Harman International Industries, Inc. .......... 4,640 189,637
-----------
TOTAL HOUSEHOLD DURABLES 531,569
-----------
HOUSEHOLD PRODUCTS 1.3%
Clorox Co. ..................................... 6,400 339,200
Colgate-Palmolive Co. .......................... 4,010 283,507
-----------
TOTAL HOUSEHOLD PRODUCTS 622,707
-----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.0%
AES Corp.*...................................... 13,821 239,933
Constellation Energy Group, Inc. ............... 3,150 266,647
-----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 506,580
-----------
INSURANCE 2.0%
Progressive Corp. .............................. 25,562 464,973
SAFECO Corp. ................................... 7,630 509,226
-----------
TOTAL INSURANCE 974,199
-----------
INTERNET & CATALOG RETAIL 1.9%
Amazon.com, Inc.*............................... 6,400 503,232
Expedia, Inc.*.................................. 17,031 430,203
-----------
TOTAL INTERNET & CATALOG RETAIL 933,435
-----------
INTERNET SOFTWARE & SERVICES 3.7%
Akamai Technologies, Inc.*...................... 8,651 309,446
eBay, Inc.*..................................... 11,631 363,934
Google, Inc. -- Class A*........................ 1,010 580,033
Yahoo!, Inc.*................................... 21,562 591,015
-----------
TOTAL INTERNET SOFTWARE & SERVICES 1,844,428
-----------
IT SERVICES 2.6%
Cognizant Technology Solutions Corp. -- Class
A*........................................... 15,741 507,647
Fiserv, Inc.*................................... 6,530 330,091
Total System Services, Inc. .................... 11,566 275,271
Western Union Co. .............................. 8,300 190,900
-----------
TOTAL IT SERVICES 1,303,909
-----------
LIFE SCIENCES TOOLS & SERVICES 0.6%
Waters Corp.*................................... 5,160 317,134
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 317,134
-----------
MACHINERY 3.0%
Caterpillar, Inc. .............................. 4,790 392,205
Cummins, Inc. .................................. 5,540 347,081
Danaher Corp. .................................. 3,350 261,367
ITT Corp. ...................................... 3,330 213,120
Terex Corp.*.................................... 3,880 270,359
-----------
TOTAL MACHINERY 1,484,132
-----------
MEDIA 0.9%
McGraw-Hill Cos., Inc. ......................... 5,180 212,328
Omnicom Group, Inc. ............................ 4,950 236,313
-----------
TOTAL MEDIA 448,641
-----------
METALS & MINING 4.5%
Freeport-McMoRan Copper & Gold, Inc. ........... 4,680 532,350
Nucor Corp. .................................... 8,431 636,541
Titanium Metals Corp. .......................... 17,882 272,522
United States Steel Corp. ...................... 4,971 765,285
-----------
TOTAL METALS & MINING 2,206,698
-----------
MULTILINE RETAIL 1.9%
Kohl's Corp.*................................... 5,981 292,172
Sears Holdings Corp.*........................... 6,540 644,909
-----------
TOTAL MULTILINE RETAIL 937,081
-----------
OIL, GAS & CONSUMABLE FUELS 9.4%
Apache Corp. ................................... 3,970 534,680
Chesapeake Energy Corp. ........................ 9,111 471,039
ConocoPhillips.................................. 4,721 406,714
CONSOL Energy, Inc. ............................ 2,870 232,355
Devon Energy Corp. ............................. 3,230 366,282
EOG Resources, Inc. ............................ 4,600 600,208
Exxon Mobil Corp. .............................. 3,510 326,676
Murphy Oil Corp. ............................... 4,350 392,979
Sunoco, Inc. ................................... 8,341 387,106
Valero Energy Corp. ............................ 6,120 298,962
XTO Energy, Inc. ............................... 10,461 647,117
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 4,664,118
-----------
PERSONAL PRODUCTS 1.2%
Avon Products, Inc. ............................ 8,811 343,805
Estee Lauder Cos., Inc -- Class A............... 5,920 270,011
-----------
TOTAL PERSONAL PRODUCTS 613,816
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 25
RYDEX S&P 500 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PHARMACEUTICALS 1.9%
Barr Pharmaceuticals, Inc.*..................... 5,190 $260,694
Forest Laboratories, Inc.*...................... 12,381 429,745
Johnson & Johnson............................... 3,550 238,169
-----------
TOTAL PHARMACEUTICALS 928,608
-----------
REAL ESTATE MANAGEMENT & DEVELOPMENT 1.3%
CB Richard Ellis Group, Inc. -- Class A*........ 27,942 646,019
-----------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 646,019
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.9%
MEMC Electronic Materials, Inc.*................ 2,420 152,387
National Semiconductor Corp. ................... 7,981 162,733
NVIDIA Corp.*................................... 6,631 136,267
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 451,387
-----------
SOFTWARE 4.7%
Adobe Systems, Inc.*............................ 8,321 310,290
Autodesk, Inc.*................................. 7,230 274,740
BMC Software, Inc.*............................. 3,790 131,740
Citrix Systems, Inc.*........................... 6,520 213,530
Electronic Arts, Inc.*.......................... 3,820 196,615
Intuit, Inc.*................................... 13,081 352,795
Microsoft Corp. ................................ 8,161 232,752
Oracle Corp.*................................... 15,171 316,315
Symantec Corp.*................................. 15,521 267,272
-----------
TOTAL SOFTWARE 2,296,049
-----------
SPECIALTY RETAIL 5.3%
Abercrombie & Fitch Co. -- Class A.............. 5,870 436,200
AutoZone, Inc.*................................. 3,360 405,720
Bed Bath & Beyond, Inc.*........................ 14,701 477,782
Best Buy Co., Inc. ............................. 5,901 253,861
GameStop Corp. -- Class A*...................... 3,820 210,253
Lowe's Cos., Inc. .............................. 14,481 364,776
TJX Cos., Inc. ................................. 14,371 463,034
-----------
TOTAL SPECIALTY RETAIL 2,611,626
-----------
TEXTILES, APPAREL & LUXURY GOODS 2.3%
Coach, Inc.*.................................... 19,411 690,449
NIKE, Inc. -- Class B........................... 3,590 239,812
Polo Ralph Lauren Corp. ........................ 2,920 181,361
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 1,111,622
-----------
TOBACCO 0.6%
UST, Inc. ...................................... 5,402 281,282
-----------
TOTAL TOBACCO 281,282
-----------
TOTAL COMMON STOCKS
(Cost $51,032,017) 49,047,330
-----------
SHORT TERM INVESTMENTS 0.7%
SSgA Prime Money Market Fund.................... 332,817 332,817
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $332,817) 332,817
-----------
TOTAL INVESTMENTS 100.0%
(Cost $51,364,834) 49,380,147
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 8,823
-----------
NET ASSETS--100.0% $49,388,970
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 26
RYDEX S&P MIDCAP 400 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.6%
AIRLINES 1.3%
Alaska Air Group, Inc.*......................... 6,040 $129,739
JetBlue Airways Corp.*.......................... 10,951 55,193
-----------
TOTAL AIRLINES 184,932
-----------
AUTO COMPONENTS 5.7%
ArvinMeritor, Inc. ............................. 31,442 469,744
Lear Corp.*..................................... 5,260 150,278
Modine Manufacturing Co. ....................... 11,081 194,693
-----------
TOTAL AUTO COMPONENTS 814,715
-----------
CAPITAL MARKETS 0.3%
Apollo Investment Corp. ........................ 2,662 43,071
-----------
TOTAL CAPITAL MARKETS 43,071
-----------
CHEMICALS 4.9%
Cabot Corp. .................................... 1,510 44,032
Chemtura Corp. ................................. 20,781 143,804
Ferro Corp. .................................... 5,170 90,889
Lubrizol Corp. ................................. 830 48,406
Olin Corp. ..................................... 6,160 124,247
RPM International, Inc. ........................ 5,730 127,779
Sensient Technologies Corp. .................... 1,720 51,204
Valspar Corp. .................................. 3,540 77,809
-----------
TOTAL CHEMICALS 708,170
-----------
COMMERCIAL BANKS 3.9%
Associated Banc-Corp. .......................... 3,660 103,468
Colonial BancGroup, Inc. ....................... 10,151 82,629
First Community Bancorp......................... 1,640 35,244
FirstMerit Corp. ............................... 4,590 94,187
TCF Financial Corp. ............................ 5,840 101,616
Webster Financial Corp. ........................ 3,680 95,864
Wilmington Trust Corp. ......................... 1,470 48,333
-----------
TOTAL COMMERCIAL BANKS 561,341
-----------
COMMERCIAL SERVICES & SUPPLIES 3.0%
Kelly Services, Inc. ........................... 14,511 322,870
Manpower, Inc. ................................. 1,590 106,737
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 429,607
-----------
COMPUTERS & PERIPHERALS 3.1%
Diebold, Inc. .................................. 1,830 71,736
Imation Corp. .................................. 10,511 246,378
Palm, Inc. ..................................... 22,191 127,820
-----------
TOTAL COMPUTERS & PERIPHERALS 445,934
-----------
CONSUMER FINANCE 1.3%
AmeriCredit Corp.*.............................. 13,641 190,428
-----------
TOTAL CONSUMER FINANCE 190,428
-----------
CONTAINERS & PACKAGING 0.5%
Sonoco Products Co. ............................ 2,240 73,808
-----------
TOTAL CONTAINERS & PACKAGING 73,808
-----------
DIVERSIFIED CONSUMER SERVICES 0.5%
Regis Corp. .................................... 2,670 77,964
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 77,964
-----------
ELECTRIC UTILITIES 3.8%
Aquila, Inc.*................................... 12,761 45,940
Great Plains Energy, Inc. ...................... 5,220 133,841
Hawaiian Electric Industries, Inc. ............. 5,970 147,161
IDACORP, Inc. .................................. 2,460 79,802
Sierra Pacific Resources........................ 3,040 41,435
Westar Energy, Inc. ............................ 4,460 103,427
-----------
TOTAL ELECTRIC UTILITIES 551,606
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 3.0%
Arrow Electronics, Inc.*........................ 1,740 47,345
Ingram Micro, Inc. -- Class A*.................. 8,551 145,453
KEMET Corp.*.................................... 14,131 57,513
Tech Data Corp.*................................ 3,120 104,863
Vishay Intertechnology, Inc.*................... 8,391 79,295
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 434,469
-----------
FOOD & STAPLES RETAILING 0.3%
Ruddick Corp. .................................. 1,320 51,084
-----------
TOTAL FOOD & STAPLES RETAILING 51,084
-----------
FOOD PRODUCTS 1.0%
J.M. Smucker Co. ............................... 1,080 53,870
Smithfield Foods, Inc.*......................... 3,120 89,482
-----------
TOTAL FOOD PRODUCTS 143,352
-----------
GAS UTILITIES 2.6%
AGL Resources, Inc. ............................ 3,260 110,840
Oneok, Inc. .................................... 2,800 134,736
WGL Holdings, Inc. ............................. 4,100 134,480
-----------
TOTAL GAS UTILITIES 380,056
-----------
HEALTH CARE PROVIDERS & SERVICES 3.4%
Health Management Associates, Inc. -- Class A*.. 32,692 233,094
Kindred Healthcare, Inc.*....................... 6,560 155,669
Omnicare, Inc. ................................. 4,760 96,866
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 485,629
-----------
HOTELS, RESTAURANTS & LEISURE 1.8%
Bob Evans Farms, Inc. .......................... 2,900 81,403
Boyd Gaming Corp. .............................. 1,380 25,875
Ruby Tuesday, Inc. ............................. 17,671 150,380
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 257,658
-----------
HOUSEHOLD DURABLES 5.1%
Furniture Brands International, Inc. ........... 32,232 436,744
Ryland Group, Inc. ............................. 9,471 302,882
-----------
TOTAL HOUSEHOLD DURABLES 739,626
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 27
RYDEX S&P MIDCAP 400 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.5%
Black Hills Corp. .............................. 1,960 $76,460
-----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 76,460
-----------
INDUSTRIAL CONGLOMERATES 0.3%
Teleflex, Inc. ................................. 819 45,119
-----------
TOTAL INDUSTRIAL CONGLOMERATES 45,119
-----------
INSURANCE 10.2%
American Financial Group, Inc. ................. 3,580 98,164
Arthur J. Gallagher & Co. ...................... 2,710 66,585
Commerce Group, Inc. ........................... 2,220 80,897
Everest Re Group, Ltd. ......................... 649 58,637
Fidelity National Financial, Inc. -- Class A.... 19,521 312,141
First American Corp. ........................... 6,310 206,968
Hanover Insurance Group, Inc. .................. 1,580 70,910
Horace Mann Educators Corp. .................... 3,600 60,912
Mercury General Corp. .......................... 2,160 107,762
Old Republic International Corp. ............... 12,221 175,371
Protective Life Corp. .......................... 3,090 131,696
Unitrin, Inc. .................................. 2,480 94,091
-----------
TOTAL INSURANCE 1,464,134
-----------
IT SERVICES 0.8%
Acxiom Corp. ................................... 9,661 114,290
-----------
TOTAL IT SERVICES 114,290
-----------
MACHINERY 2.7%
Federal Signal Corp. ........................... 14,081 195,444
Timken Co. ..................................... 2,400 86,760
Trinity Industries, Inc. ....................... 3,310 100,624
-----------
TOTAL MACHINERY 382,828
-----------
MEDIA 4.4%
Belo Corp. -- Class A........................... 9,021 91,112
Entercom Communications Corp. -- Class A........ 13,011 137,917
Lee Enterprises, Inc. .......................... 21,591 166,898
Media General, Inc. -- Class A.................. 11,971 175,734
Scholastic Corp.*............................... 2,090 58,834
-----------
TOTAL MEDIA 630,495
-----------
METALS & MINING 0.7%
Worthington Industries, Inc. ................... 5,270 94,913
-----------
TOTAL METALS & MINING 94,913
-----------
MULTI-UTILITIES 5.7%
Alliant Energy Corp. ........................... 2,170 81,744
Energy East Corp. .............................. 6,120 139,536
NSTAR........................................... 2,320 74,727
OGE Energy Corp. ............................... 2,560 83,686
PNM Resources, Inc. ............................ 8,350 120,992
Puget Energy, Inc. ............................. 3,150 85,712
SCANA Corp. .................................... 2,570 101,335
Vectren Corp. .................................. 4,680 132,350
-----------
TOTAL MULTI-UTILITIES 820,082
-----------
MULTILINE RETAIL 0.4%
99 Cents Only Stores*........................... 6,300 59,913
-----------
TOTAL MULTILINE RETAIL 59,913
-----------
PAPER & FOREST PRODUCTS 0.8%
Louisiana-Pacific Corp. ........................ 9,761 112,349
-----------
TOTAL PAPER & FOREST PRODUCTS 112,349
-----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 9.6%
BRE Properties, Inc. ........................... 1,190 57,061
Camden Property Trust........................... 1,820 96,296
Cousins Properties, Inc. ....................... 3,120 79,279
Duke Realty Corp. .............................. 3,700 90,354
Equity One, Inc. ............................... 2,950 72,865
Health Care REIT, Inc. ......................... 1,880 91,086
Highwoods Properties, Inc. ..................... 4,390 153,826
Hospitality Properties Trust.................... 4,280 137,517
Liberty Property Trust.......................... 3,840 134,515
Mack-Cali Realty Corp. ......................... 3,770 147,106
Nationwide Health Properties, Inc. ............. 2,570 92,571
Realty Income Corp. ............................ 2,240 58,934
UDR, Inc. ...................................... 3,390 85,699
Weingarten Realty Investors..................... 2,160 79,682
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 1,376,791
-----------
ROAD & RAIL 4.3%
Avis Budget Group, Inc.*........................ 18,621 247,287
Werner Enterprises, Inc. ....................... 4,160 80,912
YRC Worldwide, Inc.*............................ 17,671 287,154
-----------
TOTAL ROAD & RAIL 615,353
-----------
SPECIALTY RETAIL 6.5%
Barnes & Noble, Inc. ........................... 1,930 62,300
Borders Group, Inc. ............................ 19,311 121,659
Charming Shoppes, Inc.*......................... 48,533 250,430
Collective Brands, Inc.*........................ 6,330 78,302
Foot Locker, Inc. .............................. 17,901 226,448
Rent-A-Center, Inc.*............................ 9,371 201,758
-----------
TOTAL SPECIALTY RETAIL 940,897
-----------
THRIFTS & MORTGAGE FINANCE 4.5%
Astoria Financial Corp. ........................ 2,890 68,493
First Niagara Financial Group, Inc. ............ 10,931 157,734
IndyMac Bancorp, Inc. .......................... 56,224 182,728
New York Community Bancorp, Inc. ............... 5,730 106,979
PMI Group, Inc. ................................ 11,081 62,386
Washington Federal, Inc. ....................... 2,670 63,573
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 641,893
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 28
RYDEX S&P MIDCAP 400 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
TOBACCO 1.3%
Universal Corp. ................................ 2,900 $186,151
-----------
TOTAL TOBACCO 186,151
-----------
TRADING COMPANIES & DISTRIBUTORS 1.4%
GATX Corp. ..................................... 2,730 120,120
United Rentals, Inc.*........................... 4,390 82,708
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 202,828
-----------
TOTAL COMMON STOCKS
(Cost $16,820,652) 14,337,946
-----------
SHORT TERM INVESTMENTS 0.3%
SSgA Prime Money Market Fund.................... 44,216 44,216
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $44,216) 44,216
-----------
TOTAL INVESTMENTS 99.9%
(Cost $16,864,868) 14,382,162
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 16,761
-----------
NET ASSETS-- 100.0% $14,398,923
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 29
RYDEX S&P MIDCAP 400 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.6%
AEROSPACE & DEFENSE 1.1%
Alliant Techsystems, Inc.*...................... 1,730 $190,265
-----------
TOTAL AEROSPACE & DEFENSE 190,265
-----------
BEVERAGES 1.4%
Hansen Natural Corp.*........................... 6,369 225,399
-----------
TOTAL BEVERAGES 225,399
-----------
CAPITAL MARKETS 2.0%
Affiliated Managers Group, Inc.*................ 1,120 111,261
Eaton Vance Corp. .............................. 3,279 120,011
SEI Investments Co. ............................ 4,429 103,063
-----------
TOTAL CAPITAL MARKETS 334,335
-----------
CHEMICALS 1.9%
CF Industries Holdings, Inc. ................... 1,349 180,361
Terra Industries, Inc.*......................... 3,669 138,909
-----------
TOTAL CHEMICALS 319,270
-----------
COMMERCIAL SERVICES & SUPPLIES 5.8%
Copart, Inc.*................................... 2,380 97,271
Corporate Executive Board Co. .................. 2,599 113,238
Dun & Bradstreet Corp. ......................... 1,569 132,267
Korn/Ferry International*....................... 7,708 143,831
Mine Safety Appliances Co. ..................... 1,900 70,623
Navigant Consulting, Inc.*...................... 11,837 238,160
Rollins, Inc. .................................. 5,729 91,263
Stericycle, Inc.*............................... 1,250 66,725
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 953,378
-----------
COMMUNICATIONS EQUIPMENT 2.6%
F5 Networks, Inc.*.............................. 8,848 200,230
Harris Corp. ................................... 1,610 86,988
Plantronics, Inc. .............................. 5,649 140,717
-----------
TOTAL COMMUNICATIONS EQUIPMENT 427,935
-----------
COMPUTERS & PERIPHERALS 1.3%
Western Digital Corp.*.......................... 7,368 213,598
-----------
TOTAL COMPUTERS & PERIPHERALS 213,598
-----------
DIVERSIFIED CONSUMER SERVICES 5.4%
Career Education Corp.*......................... 8,118 163,578
Corinthian Colleges, Inc.*...................... 11,077 125,724
ITT Educational Services, Inc.*................. 2,150 164,819
Matthews International Corp. -- Class A......... 2,789 137,888
Sotheby's....................................... 3,529 97,753
Strayer Education, Inc. ........................ 1,060 196,831
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 886,593
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.9%
Amphenol Corp. ................................. 3,149 145,421
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 145,421
-----------
ENERGY EQUIPMENT & SERVICES 0.9%
FMC Technologies, Inc.*......................... 2,250 151,200
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 151,200
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 5.0%
Gen-Probe, Inc.*................................ 2,250 126,810
Hologic, Inc.*.................................. 6,039 176,278
Intuitive Surgical, Inc.*....................... 780 225,623
Kinetic Concepts, Inc.*......................... 4,489 178,034
ResMed, Inc.*................................... 2,980 128,498
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 835,243
-----------
HEALTH CARE PROVIDERS & SERVICES 5.7%
Apria Healthcare Group, Inc.*................... 7,298 128,591
Community Health Systems, Inc.*................. 3,689 138,448
Henry Schein, Inc.*............................. 1,600 88,592
Lincare Holdings, Inc.*......................... 4,339 105,611
Psychiatric Solutions, Inc.*.................... 8,928 309,891
VCA Antech, Inc.*............................... 5,118 165,670
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 936,803
-----------
HEALTH CARE TECHNOLOGY 0.5%
Cerner Corp.*................................... 1,770 81,898
-----------
TOTAL HEALTH CARE TECHNOLOGY 81,898
-----------
HOTELS, RESTAURANTS & LEISURE 2.1%
Cheesecake Factory, Inc.*....................... 5,039 114,033
Chipotle Mexican Grill, Inc. -- Class A*........ 1,330 130,513
Scientific Games Corp. -- Class A*.............. 3,609 101,629
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 346,175
-----------
HOUSEHOLD DURABLES 3.2%
NVR, Inc.*...................................... 500 306,750
Toll Brothers, Inc.*............................ 10,187 230,634
-----------
TOTAL HOUSEHOLD DURABLES 537,384
-----------
HOUSEHOLD PRODUCTS 1.6%
Church & Dwight Co., Inc. ...................... 1,860 105,685
Energizer Holdings, Inc.*....................... 2,019 159,622
-----------
TOTAL HOUSEHOLD PRODUCTS 265,307
-----------
INSURANCE 1.7%
Brown & Brown, Inc. ............................ 6,638 127,450
W.R. Berkley Corp. ............................. 5,928 152,290
-----------
TOTAL INSURANCE 279,740
-----------
INTERNET SOFTWARE & SERVICES 2.6%
Digital River, Inc.*............................ 8,868 291,314
ValueClick, Inc.*............................... 6,638 132,428
-----------
TOTAL INTERNET SOFTWARE & SERVICES 423,742
-----------
IT SERVICES 3.5%
Alliance Data Systems Corp.*.................... 1,819 104,429
DST Systems, Inc.*.............................. 2,859 171,083
Gartner, Inc.*.................................. 3,409 78,134
Global Payments, Inc. .......................... 2,859 126,539
SRA International, Inc. -- Class A*............. 3,769 99,012
-----------
TOTAL IT SERVICES 579,197
-----------
LIFE SCIENCES TOOLS & SERVICES 4.7%
Affymetrix, Inc.*............................... 8,958 97,732
Charles River Laboratories International,
Inc.*........................................ 1,060 61,533
Covance, Inc.*.................................. 909 76,165
Invitrogen Corp.*............................... 2,699 252,546
Pharmaceutical Product Development, Inc. ....... 3,339 138,301
Techne Corp.*................................... 2,069 150,044
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 776,321
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 30
RYDEX S&P MIDCAP 400 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MACHINERY 3.3%
Donaldson Co., Inc. ............................ 2,449 $106,629
Graco, Inc. .................................... 4,109 170,154
Joy Global, Inc. ............................... 3,679 273,166
-----------
TOTAL MACHINERY 549,949
-----------
MEDIA 3.0%
Getty Images, Inc.*............................. 6,168 201,385
John Wiley & Sons, Inc.- Class A................ 2,719 125,210
Valassis Communications, Inc.*.................. 11,637 165,246
-----------
TOTAL MEDIA 491,841
-----------
METALS & MINING 5.6%
Cleveland-Cliffs, Inc. ......................... 2,489 399,236
Commercial Metals Co. .......................... 7,708 240,027
Steel Dynamics, Inc. ........................... 8,338 290,579
-----------
TOTAL METALS & MINING 929,842
-----------
MULTILINE RETAIL 0.9%
Dollar Tree Stores, Inc.*....................... 4,609 145,644
-----------
TOTAL MULTILINE RETAIL 145,644
-----------
OIL, GAS & CONSUMABLE FUELS 9.2%
Cimarex Energy Co. ............................. 4,329 269,697
Denbury Resources, Inc.*........................ 4,579 139,934
Encore Acquisition Co.*......................... 9,108 415,598
Frontier Oil Corp. ............................. 5,159 128,201
Newfield Exploration Co.*....................... 2,299 139,687
Pioneer Natural Resources Co. .................. 2,369 136,762
Quicksilver Resources, Inc.*.................... 3,689 153,057
Southwestern Energy Co.*........................ 3,429 145,081
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 1,528,017
-----------
PERSONAL PRODUCTS 0.8%
NBTY, Inc.*..................................... 4,699 132,277
-----------
TOTAL PERSONAL PRODUCTS 132,277
-----------
PHARMACEUTICALS 3.7%
Endo Pharmaceuticals Holdings, Inc.*............ 7,848 194,866
Medicis Pharmaceutical Corp. -- Class A......... 3,110 64,066
Par Pharmaceutical Cos., Inc.*.................. 6,129 104,500
Sepracor, Inc.*................................. 11,217 241,726
-----------
TOTAL PHARMACEUTICALS 605,158
-----------
REAL ESTATE MANAGEMENT & DEVELOPMENT 1.5%
Jones Lang LaSalle, Inc. ....................... 3,119 242,066
-----------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 242,066
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.2%
Cree, Inc.*..................................... 7,008 182,208
Silicon Laboratories, Inc.*..................... 5,399 182,324
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 364,532
-----------
SOFTWARE 2.9%
ACI Worldwide, Inc.*............................ 8,858 195,762
Fair Isaac Corp. ............................... 3,269 80,973
Macrovision Corp.*.............................. 4,599 72,572
McAfee, Inc.*................................... 3,929 130,639
-----------
TOTAL SOFTWARE 479,946
-----------
SPECIALTY RETAIL 10.1%
Advance Auto Parts, Inc. ....................... 3,739 129,669
Aeropostale, Inc.*.............................. 9,808 311,796
American Eagle Outfitters, Inc. ................ 6,208 114,041
Chico's FAS, Inc.*.............................. 26,553 187,730
Guess?, Inc. ................................... 1,869 71,545
O'Reilly Automotive, Inc.*...................... 3,290 94,982
Pacific Sunwear of California, Inc.*............ 10,538 141,315
Ross Stores, Inc. .............................. 6,248 209,245
Urban Outfitters, Inc.*......................... 8,078 276,671
Williams-Sonoma, Inc. .......................... 5,019 132,502
-----------
TOTAL SPECIALTY RETAIL 1,669,496
-----------
TEXTILES, APPAREL & LUXURY GOODS 1.7%
Timberland Co. -- Class A*...................... 8,718 127,283
Warnaco Group, Inc.*............................ 3,479 160,521
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 287,804
-----------
TRADING COMPANIES & DISTRIBUTORS 0.8%
Fastenal Co. ................................... 2,659 129,785
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 129,785
-----------
TOTAL COMMON STOCKS
(Cost $17,662,527) 16,465,561
-----------
SHORT TERM INVESTMENTS 0.4%
SSgA Prime Money Market Fund.................... 73,509 73,509
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $73,509) 73,509
-----------
TOTAL INVESTMENTS 100.0%
(Cost $17,736,036) 16,539,070
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (2,570)
-----------
NET ASSETS--100.0% $16,536,500
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 31
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS 99.6%
AEROSPACE & DEFENSE 0.4%
Applied Signal Technology, Inc. ................ 9,150 $104,676
-----------
TOTAL AEROSPACE & DEFENSE 104,676
-----------
AUTO COMPONENTS 1.8%
Standard Motor Products, Inc. .................. 46,248 281,188
Superior Industries International, Inc. ........ 10,359 210,391
-----------
TOTAL AUTO COMPONENTS 491,579
-----------
AUTOMOBILES 0.7%
Monaco Coach Corp. ............................. 29,198 184,823
-----------
TOTAL AUTOMOBILES 184,823
-----------
BUILDING PRODUCTS 2.1%
Gibraltar Industries, Inc. ..................... 13,419 140,229
Griffon Corp.*.................................. 13,999 130,891
NCI Building Systems, Inc.*..................... 2,509 60,567
Universal Forest Products, Inc. ................ 6,720 233,251
-----------
TOTAL BUILDING PRODUCTS 564,938
-----------
CAPITAL MARKETS 0.7%
SWS Group, Inc. ................................ 14,349 188,259
-----------
TOTAL CAPITAL MARKETS 188,259
-----------
CHEMICALS 4.5%
A. Schulman, Inc. .............................. 7,590 160,908
Georgia Gulf Corp. ............................. 54,667 328,549
Material Sciences Corp.*........................ 10,270 81,544
Omnova Solutions, Inc.*......................... 14,709 50,158
PolyOne Corp.*.................................. 34,569 255,119
Quaker Chemical Corp. .......................... 7,020 217,620
Tronox, Inc. ................................... 39,659 118,580
-----------
TOTAL CHEMICALS 1,212,478
-----------
COMMERCIAL BANKS 9.4%
Central Pacific Financial Corp. ................ 10,909 200,289
Community Bank System, Inc. .................... 5,309 135,326
First Bancorp................................... 36,928 379,989
First Commonwealth Financial Corp. ............. 10,920 135,954
First Financial Bancorp......................... 10,560 138,547
First Midwest Bancorp, Inc. .................... 1,630 41,614
Hanmi Financial Corp. .......................... 13,399 93,659
Independent Bank Corp. ......................... 21,879 174,595
Irwin Financial Corp. .......................... 23,339 136,300
National Penn Bancshares, Inc. ................. 6,300 105,147
Old National Bancorp............................ 7,309 125,057
Provident Bankshares Corp. ..................... 7,449 95,422
South Financial Group, Inc. .................... 9,299 56,166
Sterling Bancorp................................ 8,169 134,053
Sterling Financial Corp. ....................... 6,420 78,388
Susquehanna Bancshares, Inc. ................... 8,480 168,667
Umpqua Holdings Corp. .......................... 12,019 177,280
United Bankshares, Inc. ........................ 1,780 51,780
Whitney Holding Corp. .......................... 3,770 88,256
-----------
TOTAL COMMERCIAL BANKS 2,516,489
-----------
COMMERCIAL SERVICES & SUPPLIES 3.7%
ABM Industries, Inc. ........................... 6,790 142,183
Angelica Corp. ................................. 9,240 149,318
CDI Corp. ...................................... 3,970 107,984
Spherion Corp.*................................. 32,139 158,767
Standard Register Co. .......................... 18,699 177,266
United Stationers, Inc.*........................ 1,190 52,467
Volt Information Sciences, Inc.*................ 14,939 199,286
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 987,271
-----------
COMMUNICATIONS EQUIPMENT 0.7%
Black Box Corp. ................................ 1,980 58,865
Ditech Networks, Inc.*.......................... 26,729 76,178
Symmetricom, Inc.*.............................. 12,999 55,766
-----------
TOTAL COMMUNICATIONS EQUIPMENT 190,809
-----------
CONSTRUCTION & ENGINEERING 0.2%
Insituform Technologies, Inc. -- Class A*....... 3,480 58,882
-----------
TOTAL CONSTRUCTION & ENGINEERING 58,882
-----------
CONTAINERS & PACKAGING 1.7%
Chesapeake Corp.*............................... 54,598 239,139
Rock-Tenn Co. .................................. 6,200 210,366
-----------
TOTAL CONTAINERS & PACKAGING 449,505
-----------
DISTRIBUTORS 1.4%
Audiovox Corp. -- Class A*...................... 7,100 77,532
Building Materials Holding Corp. ............... 63,327 295,104
-----------
TOTAL DISTRIBUTORS 372,636
-----------
DIVERSIFIED CONSUMER SERVICES 0.2%
CPI Corp. ...................................... 3,180 59,975
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 59,975
-----------
DIVERSIFIED FINANCIAL SERVICES 0.3%
Financial Federal Corp. ........................ 3,220 75,187
-----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 75,187
-----------
ELECTRIC UTILITIES 1.8%
Allete, Inc. ................................... 2,740 114,450
Central Vermont Public Service Corp. ........... 3,720 86,676
Cleco Corp. .................................... 3,230 77,552
UIL Holdings Corp. ............................. 3,150 98,595
Unisource Energy Corp. ......................... 3,630 113,401
-----------
TOTAL ELECTRIC UTILITIES 490,674
-----------
ELECTRICAL EQUIPMENT 0.6%
AO Smith Corp. ................................. 3,200 99,008
C&D Technologies, Inc.*......................... 11,149 61,542
-----------
TOTAL ELECTRICAL EQUIPMENT 160,550
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 3.0%
Benchmark Electronics, Inc.*.................... 4,499 79,992
CTS Corp. ...................................... 9,249 104,051
Gerber Scientific, Inc.*........................ 6,790 62,943
Insight Enterprises, Inc.*...................... 6,609 79,705
Methode Electronics, Inc. ...................... 4,300 46,612
Park Electrochemical Corp. ..................... 3,179 86,151
SYNNEX Corp.*................................... 14,329 342,177
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 801,631
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 32
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
FOOD & STAPLES RETAILING 2.7%
Great Atlantic & Pacific Tea Co., Inc.*......... 1,890 $52,013
Longs Drug Stores Corp. ........................ 1,190 47,671
Nash Finch Co. ................................. 7,110 260,084
Performance Food Group Co.*..................... 6,309 211,099
Spartan Stores, Inc. ........................... 7,530 157,226
-----------
TOTAL FOOD & STAPLES RETAILING 728,093
-----------
FOOD PRODUCTS 0.2%
Lance, Inc. .................................... 2,930 61,413
-----------
TOTAL FOOD PRODUCTS 61,413
-----------
GAS UTILITIES 4.0%
Atmos Energy Corp. ............................. 10,260 283,997
Laclede Group, Inc. ............................ 5,970 225,785
New Jersey Resources Corp. ..................... 2,940 93,639
Northwest Natural Gas Co. ...................... 1,230 55,190
Piedmont Natural Gas Co., Inc. ................. 3,450 90,701
Southern Union Co. ............................. 2,360 60,463
Southwest Gas Corp. ............................ 5,680 163,982
UGI Corp. ...................................... 3,929 102,154
-----------
TOTAL GAS UTILITIES 1,075,911
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 0.3%
Datascope Corp. ................................ 2,040 76,418
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 76,418
-----------
HEALTH CARE PROVIDERS & SERVICES 0.9%
Gentiva Health Services, Inc.*.................. 2,650 57,611
MedCath Corp.*.................................. 3,259 60,487
Owens & Minor, Inc. ............................ 2,459 111,442
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 229,540
-----------
HOTELS, RESTAURANTS & LEISURE 2.0%
CKE Restaurants, Inc. .......................... 3,870 40,596
Landry's Restaurants, Inc. ..................... 6,700 106,999
O'Charleys, Inc. ............................... 12,829 148,816
Steak n Shake Co.*.............................. 7,040 55,757
Triarc Cos., Inc. -- Class A.................... 27,249 193,468
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 545,636
-----------
HOUSEHOLD DURABLES 5.7%
Bassett Furniture Industries, Inc. ............. 38,269 456,932
Ethan Allen Interiors, Inc. .................... 2,990 82,135
La-Z-Boy, Inc. ................................. 49,068 312,563
Libbey, Inc. ................................... 7,639 108,474
M/I Homes, Inc. ................................ 22,289 382,256
National Presto Industries, Inc. ............... 3,240 175,576
-----------
TOTAL HOUSEHOLD DURABLES 1,517,936
-----------
HOUSEHOLD PRODUCTS 1.2%
Central Garden & Pet Co.*....................... 48,198 241,954
Spectrum Brands, Inc.*.......................... 18,149 81,489
-----------
TOTAL HOUSEHOLD PRODUCTS 323,443
-----------
INDUSTRIAL CONGLOMERATES 1.4%
Standex International Corp. .................... 12,179 256,733
Tredegar Corp. ................................. 6,990 114,217
-----------
TOTAL INDUSTRIAL CONGLOMERATES 370,950
-----------
INSURANCE 4.5%
LandAmerica Financial Group, Inc. .............. 12,739 365,609
Presidential Life Corp. ........................ 8,019 136,002
Safety Insurance Group, Inc. ................... 5,159 185,208
Selective Insurance Group, Inc. ................ 4,420 94,234
Stewart Information Services Corp. ............. 14,699 359,979
United Fire & Casualty Co. ..................... 2,390 78,751
-----------
TOTAL INSURANCE 1,219,783
-----------
IT SERVICES 1.7%
Ciber, Inc.*.................................... 17,149 107,353
Gevity HR, Inc. ................................ 51,128 348,693
-----------
TOTAL IT SERVICES 456,046
-----------
LEISURE EQUIPMENT & PRODUCTS 1.7%
Arctic Cat, Inc. ............................... 21,129 160,158
MarineMax, Inc.*................................ 12,809 146,022
Nautilus, Inc. ................................. 38,229 138,007
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 444,187
-----------
LIFE SCIENCES TOOLS & SERVICES 0.4%
Cambrex Corp. .................................. 18,629 108,980
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 108,980
-----------
MACHINERY 2.6%
Briggs & Stratton Corp. ........................ 6,640 101,061
Lydall, Inc.*................................... 9,960 116,034
Mueller Industries, Inc. ....................... 2,380 77,041
Wabash National Corp. .......................... 48,698 408,089
-----------
TOTAL MACHINERY 702,225
-----------
MEDIA 0.5%
Live Nation, Inc.*.............................. 9,129 125,889
-----------
TOTAL MEDIA 125,889
-----------
METALS & MINING 0.4%
AM Castle & Co. ................................ 3,310 102,312
-----------
TOTAL METALS & MINING 102,312
-----------
MULTI-UTILITIES 1.0%
Avista Corp. ................................... 6,180 126,875
CH Energy Group, Inc. .......................... 4,410 155,938
-----------
TOTAL MULTI-UTILITIES 282,813
-----------
MULTILINE RETAIL 1.9%
Fred's, Inc. -- Class A......................... 19,539 216,492
Tuesday Morning Corp.*.......................... 55,148 300,005
-----------
TOTAL MULTILINE RETAIL 516,497
-----------
PAPER & FOREST PRODUCTS 0.9%
Schweitzer-Mauduit International, Inc. ......... 3,170 70,152
Wausau Paper Corp. ............................. 21,899 169,498
-----------
TOTAL PAPER & FOREST PRODUCTS 239,650
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 33
RYDEX S&P SMALLCAP 600 PURE VALUE ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
REAL ESTATE INVESTMENT TRUSTS (REITS) 8.6%
BioMed Realty Trust, Inc. ...................... 6,210 $161,460
Colonial Properties Trust....................... 12,159 294,612
DiamondRock Hospitality Co. .................... 7,680 97,920
Entertainment Properties Trust.................. 1,910 101,918
Home Properties, Inc. .......................... 2,520 132,476
Inland Real Estate Corp. ....................... 5,850 94,477
Kite Realty Group Trust......................... 7,889 107,133
Lexington Corporate Properties Trust............ 9,709 139,810
LTC Properties, Inc. ........................... 3,540 96,394
Medical Properties Trust, Inc. ................. 13,799 167,658
Mid-America Apartment Communities, Inc. ........ 3,040 159,600
National Retail Properties, Inc. ............... 4,849 111,091
Parkway Properties, Inc. ....................... 4,280 169,745
Pennsylvania Real Estate Investment Trust....... 7,379 185,803
PS Business Parks, Inc. ........................ 1,000 57,240
Senior Housing Properties Trust................. 4,760 114,002
Sovran Self Storage, Inc. ...................... 2,510 112,197
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 2,303,536
-----------
ROAD & RAIL 1.7%
Arkansas Best Corp. ............................ 11,310 446,519
-----------
TOTAL ROAD & RAIL 446,519
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.7%
Photronics, Inc.*............................... 12,579 133,337
Rudolph Technologies, Inc.*..................... 6,580 66,853
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 200,190
-----------
SPECIALTY RETAIL 13.4%
Big 5 Sporting Goods Corp. ..................... 5,609 51,547
Brown Shoe Co., Inc. ........................... 9,560 159,461
Cabela's, Inc.*................................. 3,850 52,090
Cato Corp. -- Class A........................... 11,340 195,615
Finish Line, Inc. -- Class A.................... 119,045 782,126
Group 1 Automotive, Inc. ....................... 11,740 313,223
Haverty Furniture Cos., Inc. ................... 34,088 311,223
Jo-Ann Stores, Inc.*............................ 17,679 334,840
Lithia Motors, Inc. -- Class A.................. 27,948 251,532
PEP Boys-Manny Moe & Jack....................... 24,229 216,123
Sonic Automotive, Inc. -- Class A............... 13,889 281,808
Stein Mart, Inc. ............................... 86,296 459,958
Zale Corp.*..................................... 8,699 180,243
-----------
TOTAL SPECIALTY RETAIL 3,589,789
-----------
TEXTILES, APPAREL & LUXURY GOODS 0.9%
Oxford Industries, Inc. ........................ 8,900 247,331
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 247,331
-----------
THRIFTS & MORTGAGE FINANCE 5.5%
Anchor BanCorp Wisconsin, Inc. ................. 2,199 33,403
Bank Mutual Corp. .............................. 6,980 78,106
BankAtlantic Bancorp, Inc. -- Class A........... 54,398 167,546
BankUnited Financial Corp. -- Class A........... 33,419 131,337
Brookline Bancorp, Inc. ........................ 7,390 79,812
Corus Bankshares, Inc. ......................... 32,609 239,024
Dime Community Bancshares....................... 5,510 102,872
Downey Financial Corp. ......................... 4,579 64,747
FirstFed Financial Corp.*....................... 3,500 53,480
Flagstar Bancorp, Inc. ......................... 53,048 324,654
Franklin Bank Corp.*............................ 56,548 87,649
Guaranty Financial Group, Inc.*................. 6,109 46,734
TrustCo Bank Corp. ............................. 6,350 55,435
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 1,464,799
-----------
TOBACCO 0.8%
Alliance One International, Inc.*............... 36,979 227,421
-----------
TOTAL TOBACCO 227,421
-----------
TRADING COMPANIES & DISTRIBUTORS 0.8%
Lawson Products, Inc. .......................... 2,220 56,344
Watsco, Inc. ................................... 3,530 160,156
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 216,500
-----------
TOTAL COMMON STOCKS
(Cost $31,045,109) 26,734,169
-----------
SHORT TERM INVESTMENTS 0.3%
SSgA Prime Money Market Fund.................... 87,330 87,330
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $87,330) 87,330
-----------
TOTAL INVESTMENTS 99.9%
(Cost $31,132,439) 26,821,499
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 13,904
-----------
NET ASSETS--100.0% $26,835,403
- -------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 34
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.9%
AEROSPACE & DEFENSE 3.0%
AAR Corp.*...................................... 930 $21,762
Ceradyne, Inc.*................................. 1,230 47,921
Curtiss-Wright Corp. ........................... 660 31,343
Orbital Sciences Corp.*......................... 1,740 46,823
Teledyne Technologies, Inc.*.................... 430 25,254
----------
TOTAL AEROSPACE & DEFENSE 173,103
----------
AIR FREIGHT & LOGISTICS 0.5%
Forward Air Corp. .............................. 890 30,340
----------
TOTAL AIR FREIGHT & LOGISTICS 30,340
----------
AUTO COMPONENTS 0.7%
Drew Industries, Inc.*.......................... 1,570 38,292
----------
TOTAL AUTO COMPONENTS 38,292
----------
BEVERAGES 0.4%
Boston Beer Co., Inc. -- Class A*............... 580 25,694
----------
TOTAL BEVERAGES 25,694
----------
BIOTECHNOLOGY 2.9%
LifeCell Corp.*................................. 1,700 86,326
Martek Biosciences Corp.*....................... 2,290 80,745
----------
TOTAL BIOTECHNOLOGY 167,071
----------
BUILDING PRODUCTS 0.6%
Simpson Manufacturing Co., Inc. ................ 1,250 32,988
----------
TOTAL BUILDING PRODUCTS 32,988
----------
CAPITAL MARKETS 1.7%
optionsXpress Holdings, Inc. ................... 2,230 47,878
TradeStation Group, Inc.*....................... 5,340 49,822
----------
TOTAL CAPITAL MARKETS 97,700
----------
CHEMICALS 0.8%
NewMarket Corp. ................................ 740 48,048
----------
TOTAL CHEMICALS 48,048
----------
COMMERCIAL BANKS 2.2%
Nara Bancorp, Inc. ............................. 2,640 34,663
PrivateBancorp, Inc. ........................... 820 27,872
UCBH Holdings, Inc. ............................ 1,750 12,740
Wilshire Bancorp, Inc. ......................... 6,050 49,852
----------
TOTAL COMMERCIAL BANKS 125,127
----------
COMMERCIAL SERVICES & SUPPLIES 0.4%
Waste Connections, Inc.*........................ 710 22,770
----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 22,770
----------
COMMUNICATIONS EQUIPMENT 1.3%
Comtech Telecommunications Corp.*............... 750 29,047
NETGEAR, Inc.*.................................. 2,170 35,176
ViaSat, Inc.*................................... 640 14,144
----------
TOTAL COMMUNICATIONS EQUIPMENT 78,367
----------
COMPUTERS & PERIPHERALS 1.0%
Intevac, Inc.*.................................. 2,900 38,512
Stratasys, Inc.*................................ 900 17,496
----------
TOTAL COMPUTERS & PERIPHERALS 56,008
----------
CONSTRUCTION MATERIALS 0.9%
Headwaters, Inc.*............................... 4,430 50,635
----------
TOTAL CONSTRUCTION MATERIALS 50,635
----------
CONSUMER FINANCE 1.2%
First Cash Financial Services, Inc.*............ 1,620 24,041
World Acceptance Corp.*......................... 1,210 47,650
----------
TOTAL CONSUMER FINANCE 71,691
----------
DISTRIBUTORS 0.3%
LKQ Corp.*...................................... 840 18,278
----------
TOTAL DISTRIBUTORS 18,278
----------
DIVERSIFIED CONSUMER SERVICES 2.7%
Bright Horizons Family Solutions, Inc.*......... 750 35,557
Coinstar, Inc.*................................. 1,890 60,272
Pre-Paid Legal Services, Inc.*.................. 940 41,116
Universal Technical Institute, Inc.*............ 1,580 17,917
----------
TOTAL DIVERSIFIED CONSUMER SERVICES 154,862
----------
DIVERSIFIED FINANCIAL SERVICES 1.1%
Portfolio Recovery Associates, Inc. ............ 1,420 62,494
----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 62,494
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 3.8%
Brightpoint, Inc.*.............................. 2,260 20,702
Daktronics, Inc. ............................... 1,320 19,523
FARO Technologies, Inc.*........................ 1,410 49,688
FLIR Systems, Inc.*............................. 1,890 64,884
LoJack Corp.*................................... 1,650 16,319
Scansource, Inc.*............................... 930 23,222
Trimble Navigation, Ltd.*....................... 750 24,592
----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 218,930
----------
ENERGY EQUIPMENT & SERVICES 6.3%
Basic Energy Services, Inc.*.................... 3,370 78,184
CARBO Ceramics, Inc. ........................... 780 37,073
Dril-Quip, Inc.*................................ 260 14,862
Helix Energy Solutions Group, Inc.*............. 1,240 42,842
Hornbeck Offshore Services, Inc.*............... 1,220 60,841
Oceaneering International, Inc.*................ 420 28,048
Superior Well Services, Inc.*................... 1,240 29,524
Unit Corp.*..................................... 1,150 73,037
----------
TOTAL ENERGY EQUIPMENT & SERVICES 364,411
----------
FOOD & STAPLES RETAILING 0.3%
United Natural Foods, Inc.*..................... 920 18,216
----------
TOTAL FOOD & STAPLES RETAILING 18,216
----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 35
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
HEALTH CARE EQUIPMENT & SUPPLIES 5.7%
Abaxis, Inc.*................................... 940 $23,951
American Medical Systems Holdings, Inc.*........ 1,230 17,343
Cooper Cos., Inc. .............................. 860 30,100
Haemonetics Corp.*.............................. 250 14,308
ICU Medical, Inc.*.............................. 600 15,072
Idexx Laboratories, Inc.*....................... 550 29,260
Immucor, Inc.*.................................. 1,500 40,470
Integra LifeSciences Holdings Corp.*............ 900 38,133
Kensey Nash Corp.*.............................. 720 20,995
Merit Medical Systems, Inc.*.................... 1,470 21,624
Palomar Medical Technologies, Inc.*............. 4,120 58,092
SurModics, Inc.*................................ 460 20,456
----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 329,804
----------
HEALTH CARE PROVIDERS & SERVICES 8.2%
Air Methods Corp.*.............................. 650 26,065
Amedisys, Inc.*................................. 440 22,792
AMN Healthcare Services, Inc.*.................. 2,360 34,432
Amsurg Corp.*................................... 970 24,774
HealthExtras, Inc.*............................. 2,900 81,838
Healthways, Inc.*............................... 820 29,955
inVentiv Health, Inc.*.......................... 1,710 50,838
LCA-Vision, Inc. ............................... 3,870 39,126
LHC Group, Inc.*................................ 3,070 47,892
Molina Healthcare, Inc.*........................ 1,070 26,568
Pediatrix Medical Group, Inc.*.................. 460 31,289
PharMerica Corp.*............................... 1,650 28,099
Sunrise Senior Living, Inc.*.................... 1,250 26,813
----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 470,481
----------
HOTELS, RESTAURANTS & LEISURE 5.3%
CEC Entertainment, Inc.*........................ 1,230 45,756
Monarch Casino & Resort, Inc.*.................. 1,440 19,066
P.F. Chang's China Bistro, Inc.*................ 1,450 44,993
Panera Bread Co. -- Class A*.................... 1,400 73,164
Papa John's International, Inc.*................ 1,590 42,930
Shuffle Master, Inc.*........................... 5,240 25,728
Sonic Corp.*.................................... 1,680 36,943
WMS Industries, Inc.*........................... 450 16,286
----------
TOTAL HOTELS, RESTAURANTS & LEISURE 304,866
----------
HOUSEHOLD DURABLES 2.2%
Meritage Homes Corp.*........................... 3,680 69,810
Standard Pacific Corp. ......................... 11,720 59,303
----------
TOTAL HOUSEHOLD DURABLES 129,113
----------
INSURANCE 2.2%
Infinity Property & Casualty Corp. ............. 1,100 42,636
Philadelphia Consolidated Holding Co.*.......... 1,040 38,355
Zenith National Insurance Corp. ................ 1,270 47,168
----------
TOTAL INSURANCE 128,159
----------
INTERNET & CATALOG RETAIL 2.9%
NutriSystem, Inc.*.............................. 3,440 69,075
PetMed Express, Inc.*........................... 5,320 59,691
Stamps.com, Inc.*............................... 2,810 38,525
----------
TOTAL INTERNET & CATALOG RETAIL 167,291
----------
INTERNET SOFTWARE & SERVICES 5.8%
Bankrate, Inc.*................................. 1,600 83,584
DealerTrack Holdings, Inc.*..................... 1,950 37,518
InfoSpace, Inc. ................................ 2,550 30,753
j2 Global Communications, Inc.*................. 3,510 75,114
United Online, Inc. ............................ 3,950 42,186
Websense, Inc.*................................. 3,270 63,601
----------
TOTAL INTERNET SOFTWARE & SERVICES 332,756
----------
IT SERVICES 1.9%
CACI International, Inc. -- Class A*............ 720 36,086
Wright Express Corp.*........................... 2,210 72,930
----------
TOTAL IT SERVICES 109,016
----------
LEISURE EQUIPMENT & PRODUCTS 1.6%
Polaris Industries, Inc. ....................... 770 35,844
Pool Corp. ..................................... 2,500 54,575
----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 90,419
----------
LIFE SCIENCES TOOLS & SERVICES 1.4%
Dionex Corp.*................................... 440 34,417
Kendle International, Inc.*..................... 650 27,749
PharmaNet Development Group, Inc.*.............. 740 17,656
----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 79,822
----------
MACHINERY 0.5%
Toro Co. ....................................... 640 27,130
----------
TOTAL MACHINERY 27,130
----------
MEDIA 0.7%
Arbitron, Inc. ................................. 840 40,186
----------
TOTAL MEDIA 40,186
----------
METALS & MINING 0.4%
Brush Engineered Materials, Inc.*............... 720 22,327
----------
TOTAL METALS & MINING 22,327
----------
OIL, GAS & CONSUMABLE FUELS 3.9%
Cabot Oil & Gas Corp. .......................... 780 44,437
Penn Virginia Corp. ............................ 860 45,150
Petroleum Development Corp.*.................... 950 71,468
St. Mary Land & Exploration Co. ................ 1,440 62,957
----------
TOTAL OIL, GAS & CONSUMABLE FUELS 224,012
----------
PAPER & FOREST PRODUCTS 0.8%
Deltic Timber Corp. ............................ 890 46,948
----------
TOTAL PAPER & FOREST PRODUCTS 46,948
----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 36
RYDEX S&P SMALLCAP 600 PURE GROWTH ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PERSONAL PRODUCTS 2.3%
Chattem, Inc.*.................................. 370 $25,856
Mannatech, Inc. ................................ 11,670 76,205
USANA Health Sciences, Inc.*.................... 1,740 33,930
----------
TOTAL PERSONAL PRODUCTS 135,991
----------
PHARMACEUTICALS 0.5%
Sciele Pharma, Inc.*............................ 1,530 29,483
----------
TOTAL PHARMACEUTICALS 29,483
----------
ROAD & RAIL 2.3%
Heartland Express, Inc. ........................ 1,980 30,631
Knight Transportation, Inc. .................... 2,350 39,926
Landstar System, Inc. .......................... 1,230 63,911
----------
TOTAL ROAD & RAIL 134,468
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 0.4%
Diodes, Inc.*................................... 820 22,173
----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 22,173
----------
SOFTWARE 9.6%
Ansoft Corp.*................................... 1,830 60,683
Ansys, Inc.*.................................... 740 29,770
Blackbaud, Inc. ................................ 1,350 31,712
Concur Technologies, Inc.*...................... 1,110 36,785
Epicor Software Corp.*.......................... 5,300 42,400
EPIQ Systems, Inc.*............................. 1,910 29,490
Factset Research Systems, Inc. ................. 770 46,223
MICROS Systems, Inc.*........................... 810 28,877
Quality Systems, Inc. .......................... 1,780 57,174
Secure Computing Corp.*......................... 5,220 34,556
Smith Micro Software, Inc.*..................... 5,050 43,581
Sonic Solutions, Inc.*.......................... 4,020 36,944
SPSS, Inc.*..................................... 990 41,818
Tyler Technologies, Inc.*....................... 2,200 31,834
----------
TOTAL SOFTWARE 551,847
----------
SPECIALTY RETAIL 6.3%
Christopher & Banks Corp. ...................... 2,370 28,084
Dress Barn, Inc.*............................... 2,470 33,246
Gymboree Corp.*................................. 1,400 60,508
Hibbett Sports, Inc.*........................... 2,060 37,616
Jos. A. Bank Clothiers, Inc.*................... 1,390 33,930
Select Comfort Corp.*........................... 5,900 17,818
Stage Stores, Inc. ............................. 4,470 70,358
Tractor Supply Co.*............................. 1,070 38,049
Zumiez, Inc.*................................... 2,080 43,576
----------
TOTAL SPECIALTY RETAIL 363,185
----------
TEXTILES, APPAREL & LUXURY GOODS 2.9%
Crocs, Inc.*.................................... 1,890 19,297
Deckers Outdoor Corp.*.......................... 200 27,614
Fossil, Inc.*................................... 690 24,695
K-Swiss, Inc. -- Class A........................ 3,010 44,096
Volcom, Inc.*................................... 2,600 49,374
----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 165,076
----------
TOTAL COMMON STOCKS
(Cost $6,380,323) 5,759,578
----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 5,897 5,897
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $5,897) 5,897
----------
TOTAL INVESTMENTS 100.0%
(Cost $6,386,220) 5,765,475
----------
LIABILITIES IN EXCESS OF OTHER ASSETS--0.0%(A) (513)
----------
NET ASSETS--100.0% $5,764,962
- -----------------------------------------------------------------------
</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 EQUAL WEIGHT CONSUMER DISCRETIONARY ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.6%
AUTO COMPONENTS 2.4%
Goodyear Tire & Rubber Co.*..................... 3,541 $94,828
Johnson Controls, Inc. ......................... 2,498 88,080
----------
TOTAL AUTO COMPONENTS 182,908
----------
AUTOMOBILES 4.2%
Ford Motor Co.*................................. 15,447 127,592
General Motors Corp. ........................... 4,427 102,706
Harley-Davidson, Inc. .......................... 2,314 88,511
----------
TOTAL AUTOMOBILES 318,809
----------
DISTRIBUTORS 1.2%
Genuine Parts Co. .............................. 2,094 88,911
----------
TOTAL DISTRIBUTORS 88,911
----------
DIVERSIFIED CONSUMER SERVICES 2.2%
Apollo Group, Inc. -- Class A*.................. 1,622 82,560
H&R Block, Inc. ................................ 4,075 89,120
----------
TOTAL DIVERSIFIED CONSUMER SERVICES 171,680
----------
HOTELS, RESTAURANTS & LEISURE 11.6%
Carnival Corp. ................................. 2,254 90,543
Darden Restaurants, Inc. ....................... 2,535 90,195
International Game Technology................... 1,964 68,229
Marriott International, Inc. -- Class A......... 2,542 87,191
McDonald's Corp. ............................... 1,534 91,396
Starbucks Corp.*................................ 4,659 75,616
Starwood Hotels & Resorts Worldwide, Inc. ...... 1,726 90,115
Wendy's International, Inc. .................... 3,603 104,487
Wyndham Worldwide Corp. ........................ 4,403 94,576
Yum! Brands, Inc. .............................. 2,294 93,320
----------
TOTAL HOTELS, RESTAURANTS & LEISURE 885,668
----------
HOUSEHOLD DURABLES 14.5%
Black & Decker Corp. ........................... 1,300 85,319
Centex Corp. ................................... 3,751 78,096
D.R. Horton, Inc. .............................. 5,445 84,343
Fortune Brands, Inc. ........................... 1,306 88,312
Harman International Industries, Inc. .......... 1,964 80,269
KB HOME......................................... 3,649 82,102
Leggett & Platt, Inc. .......................... 5,591 92,810
Lennar Corp. -- Class A......................... 5,297 97,571
Newell Rubbermaid, Inc. ........................ 3,739 76,761
Pulte Homes, Inc. .............................. 6,393 83,365
Snap-on, Inc. .................................. 1,738 103,081
Stanley Works................................... 1,758 84,806
Whirlpool Corp. ................................ 1,006 73,217
----------
TOTAL HOUSEHOLD DURABLES 1,110,052
----------
INTERNET & CATALOG RETAIL 3.7%
Amazon.com, Inc.*............................... 1,216 95,614
Expedia, Inc.*.................................. 4,049 102,278
IAC/InterActiveCorp*............................ 4,181 87,006
----------
TOTAL INTERNET & CATALOG RETAIL 284,898
----------
LEISURE EQUIPMENT & PRODUCTS 4.8%
Brunswick Corp. ................................ 5,269 87,887
Eastman Kodak Co. .............................. 5,109 91,400
Hasbro, Inc. ................................... 3,107 110,485
Mattel, Inc. ................................... 4,091 76,706
----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 366,478
----------
MEDIA 17.8%
CBS Corp. -- Class B............................ 3,769 86,951
Clear Channel Communications, Inc. ............. 2,635 79,445
Comcast Corp. -- Class A........................ 4,293 88,221
DIRECTV Group, Inc.*............................ 3,419 84,244
E.W. Scripps Co. -- Class A..................... 1,994 89,550
Gannett Co., Inc. .............................. 2,771 79,306
Interpublic Group of Cos., Inc.*................ 9,854 89,179
McGraw-Hill Cos., Inc. ......................... 2,324 95,261
Meredith Corp. ................................. 2,154 69,811
New York Times Co. -- Class A................... 4,403 85,858
News Corp. -- Class A........................... 4,493 80,425
Omnicom Group, Inc. ............................ 1,970 94,048
Time Warner, Inc. .............................. 5,845 86,798
Viacom, Inc. -- Class B*........................ 2,168 83,338
Walt Disney Co. ................................ 2,669 86,556
Washington Post Co. -- Class B.................. 128 83,917
----------
TOTAL MEDIA 1,362,908
----------
MULTILINE RETAIL 10.9%
Big Lots, Inc.*................................. 4,021 108,688
Dillard's, Inc. -- Class A...................... 4,889 99,736
Family Dollar Stores, Inc. ..................... 4,445 95,123
J.C. Penney Co., Inc. .......................... 2,134 90,695
Kohl's Corp.*................................... 1,970 96,234
Macy's, Inc. ................................... 3,543 89,602
Nordstrom, Inc. ................................ 2,439 85,999
Sears Holdings Corp.*........................... 850 83,819
Target Corp. ................................... 1,642 87,239
----------
TOTAL MULTILINE RETAIL 837,135
----------
SPECIALTY RETAIL 19.3%
Abercrombie & Fitch Co. -- Class A.............. 1,128 83,822
AutoNation, Inc.*............................... 5,709 91,401
AutoZone, Inc.*................................. 732 88,389
Bed Bath & Beyond, Inc.*........................ 2,715 88,237
Best Buy Co., Inc. ............................. 2,050 88,191
GameStop Corp. -- Class A*...................... 1,750 96,320
Gap, Inc. ...................................... 3,971 73,940
Home Depot, Inc. ............................... 3,083 88,790
Limited Brands, Inc. ........................... 5,079 94,063
Lowe's Cos., Inc. .............................. 3,747 94,387
Office Depot, Inc.*............................. 7,275 92,247
OfficeMax, Inc. ................................ 4,117 75,218
RadioShack Corp. ............................... 5,259 73,100
Sherwin-Williams Co. ........................... 1,536 84,972
Staples, Inc. .................................. 3,749 81,353
Tiffany & Co. .................................. 2,296 99,968
TJX Cos., Inc. ................................. 2,583 83,224
----------
TOTAL SPECIALTY RETAIL 1,477,622
----------
TEXTILES, APPAREL & LUXURY GOODS 7.0%
Coach, Inc.*.................................... 2,925 104,042
Jones Apparel Group, Inc. ...................... 6,059 95,914
Liz Claiborne, Inc. ............................ 4,675 82,701
NIKE, Inc. -- Class B........................... 1,290 86,172
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 38
RYDEX S&P EQUAL WEIGHT CONSUMER DISCRETIONARY ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Polo Ralph Lauren Corp. ........................ 1,422 $88,321
V.F. Corp. ..................................... 1,082 80,479
----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 537,629
----------
TOTAL COMMON STOCKS
(Cost $9,882,944) 7,624,698
----------
SHORT TERM INVESTMENTS 0.4%
SSgA Prime Money Market Fund.................... 34,267 34,267
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $34,267) 34,267
----------
TOTAL INVESTMENTS 100.0%
(Cost $9,917,211) 7,658,965
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 41
----------
NET ASSETS--100.0% $7,659,006
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 39
RYDEX S&P EQUAL WEIGHT CONSUMER STAPLES ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.6%
BEVERAGES 19.4%
Anheuser-Busch Cos., Inc. ...................... 6,640 $326,688
Brown-Forman Corp. -- Class B................... 4,600 312,892
Coca-Cola Co. .................................. 5,030 296,116
Coca-Cola Enterprises, Inc. .................... 12,510 281,475
Constellation Brands, Inc. -- Class A*.......... 16,070 295,045
Molson Coors Brewing Co. -- Class B............. 5,840 320,265
Pepsi Bottling Group, Inc. ..................... 9,080 306,087
PepsiCo, Inc. .................................. 4,320 296,050
-----------
TOTAL BEVERAGES 2,434,618
-----------
FOOD & STAPLES RETAILING 23.3%
Costco Wholesale Corp. ......................... 4,900 349,125
CVS Caremark Corp. ............................. 7,720 311,656
Kroger Co. ..................................... 12,050 328,362
Safeway, Inc. .................................. 10,500 331,800
SUPERVALU, Inc. ................................ 10,790 357,149
Sysco Corp. .................................... 10,450 319,456
Wal-Mart Stores, Inc. .......................... 5,820 337,444
Walgreen Co. ................................... 8,390 292,392
Whole Foods Market, Inc. ....................... 9,490 309,754
-----------
TOTAL FOOD & STAPLES RETAILING 2,937,138
-----------
FOOD PRODUCTS 33.7%
Archer-Daniels-Midland Co. ..................... 7,520 331,331
Campbell Soup Co. .............................. 9,230 321,204
ConAgra Foods, Inc. ............................ 13,790 324,892
Dean Foods Co. ................................. 15,280 355,107
General Mills, Inc. ............................ 5,090 307,436
H.J. Heinz Co. ................................. 6,790 319,334
Hershey Co. .................................... 8,130 303,899
Kellogg Co. .................................... 5,950 304,462
Kraft Foods, Inc. -- Class A.................... 9,940 314,402
McCormick & Co., Inc. .......................... 8,400 317,436
Sara Lee Corp. ................................. 23,420 339,824
Tyson Foods, Inc. -- Class A.................... 18,060 321,468
Wm. Wrigley Jr. Co. ............................ 4,940 376,231
-----------
TOTAL FOOD PRODUCTS 4,237,026
-----------
HOUSEHOLD PRODUCTS 9.3%
Clorox Co. ..................................... 5,400 286,200
Colgate-Palmolive Co. .......................... 3,960 279,972
Kimberly-Clark Corp. ........................... 4,720 302,033
Procter & Gamble Co. ........................... 4,460 299,043
-----------
TOTAL HOUSEHOLD PRODUCTS 1,167,248
-----------
PERSONAL PRODUCTS 4.9%
Avon Products, Inc. ............................ 7,690 300,064
Estee Lauder Cos., Inc -- Class A............... 6,870 313,341
-----------
TOTAL PERSONAL PRODUCTS 613,405
-----------
TOBACCO 9.0%
Altria Group, Inc. ............................. 14,320 286,400
Philip Morris International, Inc.*.............. 5,640 287,809
Reynolds American, Inc. ........................ 5,030 270,866
UST, Inc. ...................................... 5,460 284,302
-----------
TOTAL TOBACCO 1,129,377
-----------
TOTAL COMMON STOCKS
(Cost $11,963,073) 12,518,812
-----------
SHORT TERM INVESTMENTS 0.3%
SSgA Prime Money Market Fund.................... 40,947 40,947
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $40,947) 40,947
-----------
TOTAL INVESTMENTS 99.9%
(Cost $12,004,020) 12,559,759
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 7,273
-----------
NET ASSETS--100.0% $12,567,032
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 40
RYDEX S&P EQUAL WEIGHT ENERGY ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.6%
ENERGY EQUIPMENT & SERVICES 37.4%
Baker Hughes, Inc. ............................. 5,111 $413,378
BJ Services Co. ................................ 14,028 396,572
Cameron International Corp.*.................... 8,750 430,762
ENSCO International, Inc. ...................... 5,628 358,672
Halliburton Co. ................................ 9,449 433,804
Nabors Industries, Ltd.*........................ 11,167 419,209
National-Oilwell Varco, Inc.*................... 6,614 452,728
Noble Corp. .................................... 7,367 414,615
Rowan Cos., Inc. ............................... 9,369 365,297
Schlumberger, Ltd. ............................. 4,190 421,304
Smith International, Inc. ...................... 5,623 430,216
Transocean, Inc.*............................... 2,612 385,166
Weatherford International, Ltd.*................ 5,384 434,327
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 5,356,050
-----------
OIL, GAS & CONSUMABLE FUELS 62.2%
Anadarko Petroleum Corp. ....................... 5,778 384,584
Apache Corp. ................................... 3,169 426,801
Chesapeake Energy Corp. ........................ 7,832 404,914
Chevron Corp. .................................. 4,093 393,542
ConocoPhillips.................................. 4,677 402,924
CONSOL Energy, Inc. ............................ 5,466 442,527
Devon Energy Corp. ............................. 3,594 407,560
El Paso Corp. .................................. 22,601 387,381
EOG Resources, Inc. ............................ 3,082 402,139
Exxon Mobil Corp. .............................. 4,015 373,676
Hess Corp. ..................................... 3,850 408,870
Marathon Oil Corp. ............................. 7,485 341,091
Murphy Oil Corp. ............................... 4,585 414,209
Noble Energy, Inc. ............................. 4,884 424,908
Occidental Petroleum Corp. ..................... 5,006 416,549
Peabody Energy Corp. ........................... 7,112 434,757
Range Resources Corp. .......................... 5,992 397,749
Spectra Energy Corp. ........................... 14,916 368,425
Sunoco, Inc. ................................... 6,150 285,422
Tesoro Corp. ................................... 11,278 283,529
Valero Energy Corp. ............................ 6,807 332,522
Williams Cos., Inc. ............................ 11,019 391,175
XTO Energy, Inc. ............................... 6,019 372,335
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 8,897,589
-----------
TOTAL COMMON STOCKS
(Cost $11,904,212) 14,253,639
-----------
SHORT TERM INVESTMENTS 0.4%
SSgA Prime Money Market Fund.................... 63,449 63,449
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $63,449) 63,449
-----------
TOTAL INVESTMENTS 100.0%
(Cost $11,967,661) 14,317,088
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 384
-----------
NET ASSETS--100.0% $14,317,472
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 41
RYDEX S&P EQUAL WEIGHT FINANCIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.9%
CAPITAL MARKETS 19.4%
American Capital Strategies, Ltd. .............. 1,610 $51,117
Ameriprise Financial, Inc. ..................... 1,120 53,189
Bank of New York Mellon Corp. .................. 1,310 57,024
Bear Stearns Cos., Inc. ........................ 10,140 108,802
Charles Schwab Corp. ........................... 3,080 66,528
E*TRADE Financial Corp.*........................ 16,200 64,476
Federated Investors, Inc. -- Class B............ 1,460 48,881
Franklin Resources, Inc. ....................... 600 57,090
Goldman Sachs Group, Inc. ...................... 340 65,066
Janus Capital Group, Inc. ...................... 2,500 70,150
Legg Mason, Inc. ............................... 1,060 63,897
Lehman Brothers Holdings, Inc. ................. 1,330 58,839
Merrill Lynch & Co., Inc. ...................... 1,320 65,776
Morgan Stanley.................................. 1,280 62,208
Northern Trust Corp. ........................... 860 63,735
State Street Corp. ............................. 710 51,219
T. Rowe Price Group, Inc. ...................... 1,190 69,686
----------
TOTAL CAPITAL MARKETS 1,077,683
----------
COMMERCIAL BANKS 15.7%
BB&T Corp. ..................................... 1,690 57,950
Comerica, Inc. ................................. 1,490 51,748
Fifth Third Bancorp............................. 2,540 54,432
First Horizon National Corp. ................... 3,480 37,584
Huntington Bancshares, Inc. .................... 5,330 50,049
KeyCorp......................................... 2,550 61,531
M&T Bank Corp. ................................. 690 64,329
Marshall & Ilsley Corp. ........................ 2,410 60,202
National City Corp. ............................ 5,760 36,288
PNC Financial Services Group, Inc. ............. 890 61,721
Regions Financial Corp. ........................ 2,790 61,157
SunTrust Banks, Inc. ........................... 970 54,078
U.S. Bancorp.................................... 1,700 57,613
Wachovia Corp. ................................. 1,970 57,425
Wells Fargo & Co. .............................. 1,800 53,550
Zions Bancorp................................... 1,190 55,157
----------
TOTAL COMMERCIAL BANKS 874,814
----------
CONSUMER FINANCE 4.6%
American Express Co. ........................... 1,310 62,906
Capital One Financial Corp. .................... 1,120 59,360
Discover Financial Services..................... 3,600 65,556
SLM Corp.*...................................... 3,620 67,079
----------
TOTAL CONSUMER FINANCE 254,901
----------
DIVERSIFIED FINANCIAL SERVICES 10.3%
Bank of America Corp. .......................... 1,450 54,433
CIT Group, Inc. ................................ 6,580 71,656
Citigroup, Inc. ................................ 2,690 67,976
CME Group, Inc. ................................ 120 54,894
IntercontinentalExchange, Inc.*................. 470 72,921
JPMorgan Chase & Co. ........................... 1,320 62,898
Leucadia National Corp. ........................ 1,310 67,098
Moody's Corp. .................................. 1,650 60,984
NYSE Euronext................................... 950 62,795
----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 575,655
----------
INSURANCE 26.3%
ACE, Ltd. ...................................... 1,030 62,099
AFLAC, Inc. .................................... 900 60,003
Allstate Corp. ................................. 1,220 61,439
Ambac Financial Group, Inc. .................... 10,110 46,809
American International Group, Inc. ............. 1,320 60,984
Aon Corp. ...................................... 1,420 64,454
Assurant, Inc. ................................. 950 61,750
Chubb Corp. .................................... 1,170 61,975
Cincinnati Financial Corp. ..................... 1,490 53,491
Genworth Financial, Inc. -- Class A............. 2,540 58,572
Hartford Financial Services Group, Inc. ........ 800 57,016
Lincoln National Corp. ......................... 1,130 60,749
Loews Corp. .................................... 1,450 61,059
Marsh & McLennan Cos., Inc. .................... 2,300 63,457
MBIA, Inc. ..................................... 4,620 48,048
MetLife, Inc. .................................. 980 59,633
Principal Financial Group, Inc. ................ 1,070 57,416
Progressive Corp. .............................. 3,630 66,030
Prudential Financial, Inc. ..................... 790 59,811
SAFECO Corp. ................................... 1,340 89,432
Torchmark Corp. ................................ 960 62,150
Travelers Cos., Inc. ........................... 1,220 61,488
Unum Group...................................... 2,670 61,971
XL Capital, Ltd. -- Class A..................... 1,820 63,500
----------
TOTAL INSURANCE 1,463,336
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 15.4%
Apartment Investment & Management Co. -- Class
A............................................ 1,510 55,840
AvalonBay Communities, Inc. .................... 570 56,857
Boston Properties, Inc. ........................ 630 63,309
Developers Diversified Realty Corp. ............ 1,420 60,989
Equity Residential Properties Trust............. 1,410 58,543
General Growth Properties, Inc. ................ 1,650 67,584
HCP, Inc. ...................................... 1,730 61,761
Host Hotels & Resorts, Inc. .................... 3,650 62,780
Kimco Realty Corp. ............................. 1,570 62,659
Plum Creek Timber Co., Inc. .................... 1,420 57,993
ProLogis........................................ 980 61,358
Public Storage, Inc. ........................... 640 58,048
Simon Property Group, Inc. ..................... 620 61,913
Vornado Realty Trust............................ 700 65,163
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 854,797
----------
REAL ESTATE MANAGEMENT & DEVELOPMENT 1.3%
CB Richard Ellis Group, Inc. -- Class A*........ 3,070 70,978
----------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 70,978
----------
THRIFTS & MORTGAGE FINANCE 6.9%
Countrywide Financial Corp. .................... 10,530 60,863
Federal Home Loan Mortgage Corp. ............... 1,760 43,842
Federal National Mortgage Association........... 1,700 48,110
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 42
RYDEX S&P EQUAL WEIGHT FINANCIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Hudson City Bancorp, Inc. ...................... 3,170 $60,642
MGIC Investment Corp. .......................... 4,450 57,984
Sovereign Bancorp, Inc. ........................ 5,870 43,849
Washington Mutual, Inc. ........................ 5,690 69,930
----------
TOTAL THRIFTS & MORTGAGE FINANCE 385,220
----------
TOTAL COMMON STOCKS
(Cost $7,167,747) 5,557,384
----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 7,127 7,127
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $7,127) 7,127
----------
TOTAL INVESTMENTS 100.0%
(Cost $7,174,874) 5,564,511
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 1,631
----------
NET ASSETS--100.0% $5,566,142
- -----------------------------------------------------------------------
</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 EQUAL WEIGHT HEALTH CARE ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 100.0%
BIOTECHNOLOGY 9.9%
Amgen, Inc.*.................................... 27,690 $1,159,380
Biogen Idec, Inc.*.............................. 18,732 1,136,845
Celgene Corp.*.................................. 19,146 1,189,733
Genzyme Corp.*.................................. 15,540 1,093,239
Gilead Sciences, Inc.*.......................... 22,886 1,184,579
-----------
TOTAL BIOTECHNOLOGY 5,763,776
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 21.1%
Baxter International, Inc. ..................... 19,008 1,184,578
Becton, Dickinson & Co. ........................ 12,520 1,119,288
Boston Scientific Corp.*........................ 88,596 1,180,985
C.R. Bard, Inc. ................................ 11,120 1,047,170
Covidien, Ltd. ................................. 25,716 1,200,680
Hospira, Inc.*.................................. 25,640 1,055,086
Medtronic, Inc. ................................ 22,808 1,110,293
St Jude Medical, Inc.*.......................... 26,010 1,138,718
Stryker Corp. .................................. 17,336 1,123,893
Varian Medical Systems, Inc.*................... 23,626 1,107,587
Zimmer Holdings, Inc.*.......................... 14,054 1,042,245
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 12,310,523
-----------
HEALTH CARE PROVIDERS & SERVICES 29.8%
Aetna, Inc. .................................... 25,782 1,124,095
AmerisourceBergen Corp. ........................ 26,730 1,083,902
Cardinal Health, Inc. .......................... 21,162 1,101,905
CIGNA Corp. .................................... 27,712 1,183,580
Coventry Health Care, Inc.*..................... 26,316 1,177,115
Express Scripts, Inc.*.......................... 18,052 1,264,001
Humana, Inc.*................................... 24,256 1,159,194
Laboratory Corp. of America Holdings*........... 14,814 1,120,235
McKesson Corp. ................................. 20,104 1,047,820
Medco Health Solutions, Inc.*................... 24,712 1,224,232
Patterson Cos., Inc.*........................... 30,708 1,050,214
Quest Diagnostics, Inc. ........................ 24,566 1,232,722
Tenet Healthcare Corp.*......................... 213,106 1,363,878
UnitedHealth Group, Inc. ....................... 31,310 1,021,645
WellPoint, Inc.*................................ 24,082 1,198,080
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 17,352,618
-----------
HEALTH CARE TECHNOLOGY 2.2%
IMS Health, Inc. ............................... 52,002 1,287,050
-----------
TOTAL HEALTH CARE TECHNOLOGY 1,287,050
-----------
LIFE SCIENCES TOOLS & SERVICES 10.3%
Applera Corp. -- Applied Biosystems Group....... 34,860 1,112,383
Millipore Corp.*................................ 16,510 1,157,351
PerkinElmer, Inc. .............................. 47,564 1,263,300
Thermo Electron Corp.*.......................... 20,388 1,179,853
Waters Corp.*................................... 20,868 1,282,547
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 5,995,434
-----------
PHARMACEUTICALS 26.7%
Abbott Laboratories............................. 19,916 1,050,569
Allergan, Inc. ................................. 19,646 1,107,445
Barr Pharmaceuticals, Inc.*..................... 23,570 1,183,921
Bristol-Myers Squibb Co. ....................... 51,500 1,131,455
Eli Lilly & Co. ................................ 22,170 1,067,264
Forest Laboratories, Inc.*...................... 27,976 971,047
Johnson & Johnson............................... 16,890 1,133,150
King Pharmaceuticals, Inc.*..................... 125,916 1,182,351
Merck & Co., Inc. .............................. 25,544 971,694
Mylan Laboratories, Inc. ....................... 99,236 1,306,938
Pfizer, Inc. ................................... 53,576 1,077,413
Schering-Plough Corp. .......................... 54,344 1,000,473
Watson Pharmaceuticals, Inc.*................... 38,514 1,195,475
Wyeth........................................... 26,612 1,183,436
-----------
TOTAL PHARMACEUTICALS 15,562,631
-----------
TOTAL COMMON STOCKS
(Cost $60,162,128) 58,272,032
-----------
SHORT TERM INVESTMENTS 0.0%(A)
SSgA Prime Money Market Fund.................... 3,150 3,150
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $3,150) 3,150
-----------
TOTAL INVESTMENTS 100.0%
(Cost $60,165,278) 58,275,182
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 5,494
-----------
NET ASSETS--100.0% $58,280,676
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 44
RYDEX S&P EQUAL WEIGHT INDUSTRIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.6%
AEROSPACE & DEFENSE 19.5%
Boeing Co. ..................................... 3,080 $261,369
General Dynamics Corp. ......................... 2,670 241,421
Goodrich Corp. ................................. 3,860 263,059
Honeywell International, Inc. .................. 4,210 250,074
L-3 Communications Holdings, Inc. .............. 2,130 237,388
Lockheed Martin Corp. .......................... 2,270 240,711
Northrop Grumman Corp. ......................... 2,900 213,353
Precision Castparts Corp. ...................... 2,380 279,793
Raytheon Co. ................................... 3,610 230,932
Rockwell Collins, Inc. ......................... 4,220 266,324
United Technologies Corp. ...................... 3,300 239,151
-----------
TOTAL AEROSPACE & DEFENSE 2,723,575
-----------
AIR FREIGHT & LOGISTICS 7.1%
C.H. Robinson Worldwide, Inc. .................. 4,170 261,376
Expeditors International of Washington, Inc. ... 5,350 249,256
FedEx Corp. .................................... 2,640 253,097
United Parcel Service, Inc. -- Class B.......... 3,170 229,540
-----------
TOTAL AIR FREIGHT & LOGISTICS 993,269
-----------
AIRLINES 1.8%
Southwest Airlines Co. ......................... 18,910 250,368
-----------
TOTAL AIRLINES 250,368
-----------
BUILDING PRODUCTS 3.2%
Masco Corp. .................................... 11,750 213,968
Trane, Inc. .................................... 5,010 233,015
-----------
TOTAL BUILDING PRODUCTS 446,983
-----------
COMMERCIAL SERVICES & SUPPLIES 15.5%
Allied Waste Industries, Inc.*.................. 22,480 277,853
Avery Dennison Corp. ........................... 4,790 230,830
Cintas Corp. ................................... 7,910 234,215
Equifax, Inc. .................................. 6,670 255,261
Monster Worldwide, Inc.*........................ 9,590 233,325
Pitney Bowes, Inc. ............................. 6,430 232,187
R.R. Donnelley & Sons Co. ...................... 7,870 241,137
Robert Half International, Inc. ................ 9,030 214,011
Waste Management, Inc. ......................... 6,880 248,368
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 2,167,187
-----------
CONSTRUCTION & ENGINEERING 4.0%
Fluor Corp. .................................... 1,760 269,051
Jacobs Engineering Group, Inc.*................. 3,300 284,889
-----------
TOTAL CONSTRUCTION & ENGINEERING 553,940
-----------
ELECTRICAL EQUIPMENT 5.2%
Cooper Industries, Ltd. -- Class A.............. 6,070 257,307
Emerson Electric Co. ........................... 4,630 241,964
Rockwell Automation, Inc. ...................... 4,210 228,308
-----------
TOTAL ELECTRICAL EQUIPMENT 727,579
-----------
INDUSTRIAL CONGLOMERATES 6.7%
3M Co. ......................................... 2,910 223,779
General Electric Co. ........................... 6,150 201,105
Textron, Inc. .................................. 4,230 258,073
Tyco International, Ltd. ....................... 5,270 246,583
-----------
TOTAL INDUSTRIAL CONGLOMERATES 929,540
-----------
MACHINERY 25.4%
Caterpillar, Inc. .............................. 3,070 251,372
Cummins, Inc. .................................. 4,690 293,829
Danaher Corp. .................................. 3,000 234,060
Deere & Co. .................................... 2,890 242,962
Dover Corp. .................................... 5,570 275,548
Eaton Corp. .................................... 2,860 251,222
Illinois Tool Works, Inc. ...................... 4,730 247,332
Ingersoll-Rand Co., Ltd. -- Class A............. 5,330 236,545
ITT Corp. ...................................... 4,320 276,480
Manitowoc Co., Inc. ............................ 6,010 227,298
PACCAR, Inc. ................................... 4,920 232,814
Pall Corp. ..................................... 6,160 214,183
Parker-Hannifin Corp. .......................... 3,530 281,871
Terex Corp.*.................................... 3,890 271,055
-----------
TOTAL MACHINERY 3,536,571
-----------
ROAD & RAIL 9.4%
Burlington Northern Santa Fe Corp. ............. 2,510 257,401
CSX Corp. ...................................... 4,200 264,390
Norfolk Southern Corp. ......................... 4,320 257,386
Ryder System, Inc. ............................. 3,720 254,708
Union Pacific Corp. ............................ 1,860 270,053
-----------
TOTAL ROAD & RAIL 1,303,938
-----------
TRADING COMPANIES & DISTRIBUTORS 1.8%
W.W. Grainger, Inc. ............................ 2,920 253,193
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 253,193
-----------
TOTAL COMMON STOCKS
(Cost $12,572,154) 13,886,143
-----------
SHORT TERM INVESTMENTS 0.4%
SSgA Prime Money Market Fund.................... 55,641 55,641
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $55,641) 55,641
-----------
TOTAL INVESTMENTS 100.0%
(Cost $12,627,795) 13,941,784
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.0%(A) 4,920
-----------
NET ASSETS--100.0% $13,946,704
- -----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 45
RYDEX S&P EQUAL WEIGHT MATERIALS ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------------
COMMON STOCKS 99.7%
CHEMICALS 46.3%
Air Products & Chemicals, Inc. ................. 1,042 $102,564
Ashland, Inc. .................................. 1,972 104,555
Dow Chemical Co. ............................... 2,427 97,444
Du Pont (E.I.) de Nemours & Co. ................ 1,988 97,233
Eastman Chemical Co. ........................... 1,456 107,016
Ecolab, Inc. ................................... 2,086 95,873
Hercules, Inc. ................................. 4,858 91,330
International Flavors & Fragrances, Inc. ....... 2,161 98,563
Monsanto Co. ................................... 927 105,697
PPG Industries, Inc. ........................... 1,532 94,019
Praxair, Inc. .................................. 1,122 102,450
Rohm & Haas Co. ................................ 1,682 89,903
Sigma-Aldrich Corp. ............................ 1,576 89,864
----------
TOTAL CHEMICALS 1,276,511
----------
CONSTRUCTION MATERIALS 3.8%
Vulcan Materials Co. ........................... 1,501 103,299
----------
TOTAL CONSTRUCTION MATERIALS 103,299
----------
CONTAINERS & PACKAGING 14.3%
Ball Corp. ..................................... 2,128 114,444
Bemis Co., Inc. ................................ 3,758 98,835
Pactiv Corp.*................................... 3,548 84,407
Sealed Air Corp. ............................... 3,818 96,557
----------
TOTAL CONTAINERS & PACKAGING 394,243
----------
METALS & MINING 25.4%
Alcoa, Inc. .................................... 2,558 88,967
Allegheny Technologies, Inc. ................... 1,292 88,928
Freeport-McMoRan Copper & Gold, Inc. ........... 999 113,636
Newmont Mining Corp. ........................... 1,832 80,993
Nucor Corp. .................................... 1,328 100,264
Titanium Metals Corp. .......................... 6,937 105,720
United States Steel Corp. ...................... 784 120,697
----------
TOTAL METALS & MINING 699,205
----------
PAPER & FOREST PRODUCTS 9.9%
International Paper Co. ........................ 3,270 85,576
MeadWestvaco Corp. ............................. 3,453 90,814
Weyerhaeuser Co. ............................... 1,492 95,309
----------
TOTAL PAPER & FOREST PRODUCTS 271,699
----------
TOTAL COMMON STOCKS
(Cost $3,059,531) 2,744,957
----------
SHORT TERM INVESTMENTS 0.2%
SSgA Prime Money Market Fund.................... 6,360 6,360
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $6,360) 6,360
----------
TOTAL INVESTMENTS 99.9%
(Cost $3,065,891) 2,751,317
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 3,611
----------
NET ASSETS--100.0% $2,754,928
- -----------------------------------------------------------------------
</Table>
*Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 46
RYDEX S&P EQUAL WEIGHT TECHNOLOGY ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------------
COMMON STOCKS 99.9%
COMMUNICATIONS EQUIPMENT 11.2%
Ciena Corp.*.................................... 9,404 $317,949
Cisco Systems, Inc.*............................ 11,004 282,143
Corning, Inc. .................................. 11,492 306,951
JDS Uniphase Corp.*............................. 20,886 298,879
Juniper Networks, Inc.*......................... 11,300 312,106
Motorola, Inc. ................................. 29,879 297,595
QUALCOMM, Inc. ................................. 7,228 312,177
Tellabs, Inc.*.................................. 48,792 251,767
-----------
TOTAL COMMUNICATIONS EQUIPMENT 2,379,567
-----------
COMPUTERS & PERIPHERALS 15.4%
Apple, Inc.*.................................... 2,101 365,469
Dell, Inc.*..................................... 13,829 257,634
EMC Corp.*...................................... 19,242 296,327
Hewlett-Packard Co. ............................ 5,826 270,035
International Business Machines Corp. .......... 2,346 283,162
Lexmark International, Inc. -- Class A*......... 8,918 279,936
NetApp, Inc.*................................... 14,043 339,841
QLogic Corp.*................................... 18,088 288,684
SanDisk Corp.*.................................. 13,684 370,700
Sun Microsystems, Inc.*......................... 17,363 271,905
Teradata Corp.*................................. 11,843 252,137
-----------
TOTAL COMPUTERS & PERIPHERALS 3,275,830
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 5.6%
Agilent Technologies, Inc.*..................... 9,417 284,488
Jabil Circuit, Inc. ............................ 23,193 252,340
Molex, Inc. .................................... 12,081 342,859
Tyco Electronics, Ltd. ......................... 8,518 318,658
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 1,198,345
-----------
INTERNET SOFTWARE & SERVICES 7.5%
Akamai Technologies, Inc.*...................... 9,349 334,414
eBay, Inc.*..................................... 9,855 308,363
Google, Inc. -- Class A*........................ 652 374,437
VeriSign, Inc.*................................. 8,050 290,202
Yahoo!, Inc.*................................... 10,153 278,294
-----------
TOTAL INTERNET SOFTWARE & SERVICES 1,585,710
-----------
IT SERVICES 16.7%
Affiliated Computer Services, Inc. -- Class A*.. 5,791 306,749
Automatic Data Processing, Inc. ................ 6,786 299,941
Cognizant Technology Solutions Corp. -- Class
A*........................................... 9,931 320,275
Computer Sciences Corp.*........................ 6,864 299,202
Convergys Corp.*................................ 18,292 287,550
Electronic Data Systems Corp. .................. 16,926 314,146
Fidelity National Information Services, Inc. ... 7,214 260,137
Fiserv, Inc.*................................... 5,676 286,922
Paychex, Inc. .................................. 8,517 309,763
Total System Services, Inc. .................... 12,286 292,407
Unisys Corp.*................................... 65,541 272,651
Western Union Co. .............................. 12,494 287,362
-----------
TOTAL IT SERVICES 3,537,105
-----------
OFFICE ELECTRONICS 1.2%
Xerox Corp. .................................... 18,256 255,036
-----------
TOTAL OFFICE ELECTRONICS 255,036
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 26.0%
Advanced Micro Devices, Inc.*................... 44,518 265,327
Altera Corp. ................................... 15,235 324,201
Analog Devices, Inc. ........................... 9,898 318,815
Applied Materials, Inc. ........................ 13,094 244,334
Broadcom Corp. -- Class A*...................... 16,333 424,005
Intel Corp. .................................... 12,696 282,613
KLA-Tencor Corp. ............................... 7,750 338,520
Linear Technology Corp. ........................ 8,912 311,563
LSI Logic Corp.*................................ 54,719 339,258
MEMC Electronic Materials, Inc.*................ 3,362 211,705
Microchip Technology, Inc. ..................... 8,282 304,363
Micron Technology, Inc.*........................ 46,943 362,400
National Semiconductor Corp. ................... 15,351 313,007
Novellus Systems, Inc.*......................... 12,915 282,322
NVIDIA Corp.*................................... 15,347 315,381
Teradyne, Inc.*................................. 22,995 305,604
Texas Instruments, Inc. ........................ 9,738 283,960
Xilinx, Inc. ................................... 11,434 283,220
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 5,510,598
-----------
SOFTWARE 16.3%
Adobe Systems, Inc.*............................ 7,950 296,455
Autodesk, Inc.*................................. 8,620 327,560
BMC Software, Inc.*............................. 8,442 293,444
CA, Inc. ....................................... 12,402 274,580
Citrix Systems, Inc.*........................... 8,618 282,239
Compuware Corp.*................................ 36,201 272,956
Electronic Arts, Inc.*.......................... 5,740 295,438
Intuit, Inc.*................................... 10,246 276,335
Microsoft Corp. ................................ 9,498 270,883
Novell, Inc.*................................... 45,785 287,530
Oracle Corp.*................................... 13,864 289,064
Symantec Corp.*................................. 16,445 283,183
-----------
TOTAL SOFTWARE 3,449,667
-----------
TOTAL COMMON STOCKS
(Cost $23,671,957)...................................... 21,191,858
-----------
SHORT TERM INVESTMENTS 0.0%(A)
SSgA Prime Money Market Fund.................... 100 100
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $100) 100
-----------
TOTAL INVESTMENTS 99.9%
(Cost $23,672,057) 21,191,958
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 17,525
-----------
NET ASSETS--100.0% $21,209,483
- ------------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 47
RYDEX S&P EQUAL WEIGHT UTILITIES ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS 99.8%
DIVERSIFIED TELECOMMUNICATION SERVICES 17.1%
AT&T, Inc. ..................................... 3,580 $138,582
CenturyTel, Inc. ............................... 3,890 126,230
Citizens Communications Co. .................... 12,319 132,060
Embarq Corp. ................................... 3,340 138,844
Qwest Communications International, Inc. ....... 28,348 146,276
Verizon Communications, Inc. ................... 3,680 141,606
Windstream Corp. ............................... 10,799 126,780
----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 950,378
----------
ELECTRIC UTILITIES 32.0%
Allegheny Energy, Inc. ......................... 2,680 144,184
American Electric Power Co., Inc. .............. 3,200 142,816
Duke Energy Corp. .............................. 7,239 132,546
Edison International............................ 2,690 140,337
Entergy Corp. .................................. 1,240 142,426
Exelon Corp. ................................... 1,620 138,478
FirstEnergy Corp. .............................. 1,890 142,960
FPL Group, Inc. ................................ 2,150 142,523
Pepco Holdings, Inc. ........................... 5,270 131,276
Pinnacle West Capital Corp. .................... 3,630 123,202
PPL Corp. ...................................... 2,820 135,416
Progress Energy, Inc. .......................... 3,130 131,429
Southern Co. ................................... 3,650 135,890
----------
TOTAL ELECTRIC UTILITIES 1,783,483
----------
GAS UTILITIES 5.2%
Nicor, Inc. .................................... 3,900 136,968
Questar Corp. .................................. 2,410 149,492
----------
TOTAL GAS UTILITIES 286,460
----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 7.5%
AES Corp.*...................................... 8,119 140,946
Constellation Energy Group, Inc. ............... 1,540 130,361
Dynegy, Inc. -- Class A*........................ 17,019 146,704
----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 418,011
----------
MULTI-UTILITIES 32.2%
Ameren Corp. ................................... 3,010 $136,534
CenterPoint Energy, Inc. ....................... 9,209 140,161
CMS Energy Corp. ............................... 9,429 137,475
Consolidated Edison, Inc. ...................... 3,200 133,120
Dominion Resources, Inc. ....................... 3,210 139,282
DTE Energy Co. ................................. 3,320 133,829
Integrys Energy Group, Inc. .................... 2,870 137,444
NiSource, Inc. ................................. 7,419 132,800
PG&E Corp. ..................................... 3,530 141,200
Public Service Enterprise Group, Inc. .......... 3,130 137,438
Sempra Energy................................... 2,620 148,475
TECO Energy, Inc. .............................. 8,659 138,631
Xcel Energy, Inc. .............................. 6,480 134,784
----------
TOTAL MULTI-UTILITIES 1,791,173
----------
WIRELESS TELECOMMUNICATION SERVICES 5.8%
American Tower Corp. -- Class A*................ 3,320 144,154
Sprint Nextel Corp. ............................ 22,528 179,999
----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 324,153
----------
TOTAL COMMON STOCKS
(Cost $5,778,662) 5,553,658
----------
SHORT TERM INVESTMENTS 0.1%
SSgA Prime Money Market Fund.................... 3,474 3,474
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $3,474) 3,474
----------
TOTAL INVESTMENTS 99.9%
(Cost $5,782,136) 5,557,132
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 8,251
----------
NET ASSETS--100.0% $5,565,383
- ----------------------------------------------------------------------
</Table>
*Non-Income Producing Security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 48
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P
RYDEX S&P RYDEX S&P MIDCAP 400 MIDCAP 400 SMALLCAP
500 PURE 500 PURE PURE VALUE PURE GROWTH 600 PURE
VALUE ETF GROWTH ETF ETF ETF VALUE ETF
----------- ----------- ----------- ----------- -----------
ASSETS
Investments at Market Value*....... $27,168,107 $49,380,147 $14,382,162 $16,539,070 $26,821,499
Cash............................... 16 -- -- -- --
Receivables:
Dividends........................ 32,725 22,765 20,808 2,066 21,791
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS.................. 27,200,848 49,402,912 14,402,970 16,541,136 26,843,290
----------- ----------- ----------- ----------- -----------
LIABILITIES
Payables:
Accrued Management Fees.......... 7,795 13,942 4,047 4,636 7,887
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES............. 7,795 13,942 4,047 4,636 7,887
----------- ----------- ----------- ----------- -----------
NET ASSETS......................... $27,193,053 $49,388,970 $14,398,923 $16,536,500 $26,835,403
=========== =========== =========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital.................... $33,210,084 $52,119,954 $16,989,519 $18,314,997 $33,574,256
Undistributed Net Investment
Income/(Loss).................... 52,042 13,047 29,479 (2,478) 62,548
Accumulated Net Realized Loss on
Investments...................... (283,927) (759,344) (137,369) (579,053) (2,490,461)
Net Unrealized Depreciation on
Investments...................... (5,785,146) (1,984,687) (2,482,706) (1,196,966) (4,310,940)
----------- ----------- ----------- ----------- -----------
NET ASSETS......................... $27,193,053 $49,388,970 $14,398,923 $16,536,500 $26,835,403
=========== =========== =========== =========== ===========
Shares Outstanding (Unlimited
Shares Authorized), No Par
Value............................ 950,550 1,350,065 450,121 300,011 850,034
=========== =========== =========== =========== ===========
Net Asset Value, Offering Price and
Repurchase Price Per Share....... $ 28.61 $ 36.58 $ 31.99 $ 55.12 $ 31.57
=========== =========== =========== =========== ===========
*Total Cost of Investments......... $32,953,253 $51,364,834 $16,864,868 $17,736,036 $31,132,439
=========== =========== =========== =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 49
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P
RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P
SMALLCAP 600 CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT
PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF ENERGY ETF FINANCIALS ETF
--------------- ----------------- ------------ ------------ --------------
ASSETS
Investments at Market Value*.. $5,765,475 $ 7,658,965 $12,559,759 $14,317,088 $ 5,564,511
Cash.......................... -- -- -- 23 --
Receivables:
Dividends................... 1,127 5,206 12,393 6,174 3,892
---------- ----------- ----------- ----------- -----------
TOTAL ASSETS............. 5,766,602 7,664,171 12,572,152 14,323,285 5,568,403
---------- ----------- ----------- ----------- -----------
LIABILITIES
Payables:
Accrued Management Fees..... 1,640 5,165 5,120 5,813 2,261
---------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES........ 1,640 5,165 5,120 5,813 2,261
---------- ----------- ----------- ----------- -----------
NET ASSETS.................... $5,764,962 $ 7,659,006 $12,567,032 $14,317,472 $ 5,566,142
========== =========== =========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital............... $6,693,841 $10,831,213 $12,058,381 $11,665,009 $ 7,361,096
Undistributed Net Investment
Income/(Loss)............... (343) 4,479 14,211 (318) 9,131
Accumulated Net Realized
Gain/(Loss) on Investments.. (307,791) (918,440) (61,299) 303,354 (193,722)
Net Unrealized
Appreciation/(Depreciation)
on Investments.............. (620,745) (2,258,246) 555,739 2,349,427 (1,610,363)
---------- ----------- ----------- ----------- -----------
NET ASSETS.................... $5,764,962 $ 7,659,006 $12,567,032 $14,317,472 $ 5,566,142
========== =========== =========== =========== ===========
Shares Outstanding (Unlimited
Shares Authorized), No Par
Value....................... 150,004 200,000 250,000 200,005 150,000
========== =========== =========== =========== ===========
Net Asset Value, Offering
Price and Repurchase Price
Per Share................... $ 38.43 $ 38.30 $ 50.27 $ 71.59 $ 37.11
========== =========== =========== =========== ===========
*Total Cost of Investments.... $6,386,220 $ 9,917,211 $12,004,020 $11,967,661 $ 7,174,874
========== =========== =========== =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 50
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (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*... $58,275,182 $13,941,784 $2,751,317 $21,191,958 $5,557,132
Cash........................... -- -- -- -- 10
Receivables:
Investments Sold............. -- -- -- 22,981 --
Dividends.................... 24,555 10,504 5,204 4,998 10,487
----------- ----------- ---------- ----------- ----------
TOTAL ASSETS.............. 58,299,737 13,952,288 2,756,521 21,219,937 5,567,629
----------- ----------- ---------- ----------- ----------
LIABILITIES
Payables:
Due to Custodian............. -- -- -- 548 --
Accrued Management Fees...... 19,061 5,584 1,593 9,906 2,246
----------- ----------- ---------- ----------- ----------
TOTAL LIABILITIES......... 19,061 5,584 1,593 10,454 2,246
----------- ----------- ---------- ----------- ----------
NET ASSETS..................... $58,280,676 $13,946,704 $2,754,928 $21,209,483 $5,565,383
=========== =========== ========== =========== ==========
NET ASSETS CONSIST OF:
Paid-in Capital................ $60,342,145 $12,525,672 $3,153,327 $24,096,392 $5,735,156
Undistributed Net Investment
Income/(Loss)................ 4,334 5,299 6,720 (6,412) 13,795
Accumulated Net Realized
Gain/(Loss) on Investments... (175,707) 101,744 (90,545) (400,398) 41,436
Net Unrealized
Appreciation/(Depreciation)
on Investments............... (1,890,096) 1,313,989 (314,574) (2,480,099) (225,004)
----------- ----------- ---------- ----------- ----------
NET ASSETS..................... $58,280,676 $13,946,704 $2,754,928 $21,209,483 $5,565,383
=========== =========== ========== =========== ==========
Shares Outstanding (Unlimited
Shares Authorized), No Par
Value........................ 1,100,000 250,000 50,000 450,000 100,000
=========== =========== ========== =========== ==========
Net Asset Value, Offering Price
and Repurchase Price Per
Share........................ $ 52.98 $ 55.79 $ 55.10 $ 47.13 $ 55.65
=========== =========== ========== =========== ==========
*Total Cost of Investments..... $60,165,278 $12,627,795 $3,065,891 $23,672,057 $5,782,136
=========== =========== ========== =========== ==========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 51
STATEMENTS OF OPERATIONS For the Six-Months Ended
April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P RYDEX S&P
500 PURE 500 PURE MIDCAP 400 MIDCAP 400 SMALLCAP 600
VALUE ETF GROWTH ETF PURE VALUE ETF PURE GROWTH ETF PURE VALUE ETF
----------- ----------- -------------- --------------- --------------
INVESTMENT INCOME
Dividends................... $ 619,435 $ 214,577 $ 230,980 $ 36,513 $ 326,702
Foreign Taxes Withheld...... -- -- -- -- (355)
----------- ----------- ----------- ----------- -----------
Total Income............. 619,435 214,577 230,980 36,513 326,347
----------- ----------- ----------- ----------- -----------
EXPENSES
Management Fee.............. 55,771 87,741 26,427 30,992 39,994
----------- ----------- ----------- ----------- -----------
Net Investment Income......... 563,664 126,836 204,553 5,521 286,353
----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN/(LOSS)
ON INVESTMENTS
Net Realized Gain/(Loss) From:
Investments................. (272,835) (403,696) (10,160) (554,428) (2,267,588)
In-kind Redemptions......... (659,099) 2,995,646 (164,386) 1,463,975 607,023
----------- ----------- ----------- ----------- -----------
Net Realized
Gain/(Loss)............ (931,934) 2,591,950 (174,546) 909,547 (1,660,565)
Net Change in Unrealized
Depreciation on
Investments................. (5,552,665) (7,314,696) (2,020,763) (2,245,128) (1,590,350)
----------- ----------- ----------- ----------- -----------
Net Realized and Unrealized
Loss on Investments......... (6,484,599) (4,722,746) (2,195,309) (1,335,581) (3,250,915)
----------- ----------- ----------- ----------- -----------
NET DECREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $(5,920,935) $(4,595,910) $(1,990,756) $(1,330,060) $(2,964,562)
=========== =========== =========== =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 52
STATEMENTS OF OPERATIONS For the Six-Months Ended
April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P RYDEX S&P
RYDEX S&P EQUAL WEIGHT EQUAL WEIGHT RYDEX S&P RYDEX S&P
SMALLCAP 600 CONSUMER CONSUMER EQUAL WEIGHT EQUAL WEIGHT
PURE GROWTH ETF DISCRETIONARY ETF STAPLES ETF ENERGY ETF FINANCIALS ETF
--------------- ----------------- ------------ ------------ --------------
INVESTMENT INCOME
Dividends..................... $ 35,004 $ 173,785 $ 98,915 $ 63,229 $ 94,504
----------- ----------- --------- ---------- -----------
Total Income............... 35,004 173,785 98,915 63,229 94,504
----------- ----------- --------- ---------- -----------
EXPENSES
Management Fee................ 11,819 43,110 22,237 33,920 14,539
----------- ----------- --------- ---------- -----------
Net Investment Income........... 23,185 130,675 76,678 29,309 79,965
----------- ----------- --------- ---------- -----------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net Realized Gain/(Loss) From:
Investments................... (255,659) (915,584) 19,236 314,607 (162,551)
In-kind Redemptions........... 573,585 (846,883) -- 751,134 --
----------- ----------- --------- ---------- -----------
Net Realized Gain/(Loss)... 317,926 (1,762,467) 19,236 1,065,741 (162,551)
Net Change in Unrealized
Depreciation on Investments... (1,530,065) (1,303,954) (151,947) (262,124) (1,280,258)
----------- ----------- --------- ---------- -----------
Net Realized and Unrealized
Gain/(Loss) on Investments.... (1,212,139) (3,066,421) (132,711) 803,617 (1,442,809)
----------- ----------- --------- ---------- -----------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $(1,188,954) $(2,935,746) $ (56,033) $ 832,926 $(1,362,844)
=========== =========== ========= ========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 53
STATEMENTS OF OPERATIONS For the Six-Months Ended
April 30, 2008 (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...................... $ 83,671 $ 75,349 $ 139,251 $ 59,740 $ 100,637
----------- -------- --------- ----------- ---------
Total Income................ 83,671 75,349 139,251 59,740 100,637
----------- -------- --------- ----------- ---------
EXPENSES
Management Fee................. 57,900 24,014 18,463 52,110 14,296
----------- -------- --------- ----------- ---------
Net Investment Income............ 25,771 51,335 120,788 7,630 86,341
----------- -------- --------- ----------- ---------
REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS
Net Realized Gain/(Loss) From:
Investments.................... (155,495) 113,961 (78,067) (376,413) 43,622
In-kind Redemptions............ 234,475 -- 317,838 448,019 --
----------- -------- --------- ----------- ---------
Net Realized Gain........... 78,980 113,961 239,771 71,606 43,622
Net Change in Unrealized
Appreciation/(Depreciation) on
Investments.................... (1,742,759) 37,578 (853,015) (2,974,655) (706,941)
----------- -------- --------- ----------- ---------
Net Realized and Unrealized
Gain/(Loss) on Investments..... (1,663,779) 151,539 (613,244) (2,903,049) (663,319)
----------- -------- --------- ----------- ---------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS................ $(1,638,008) $202,874 $(492,456) $(2,895,419) $(576,978)
=========== ======== ========= =========== =========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 54
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF
--------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
-------------- ---------------- -------------- ----------------
OPERATIONS
Net Investment Income............... $ 563,664 $ 782,512 $ 126,836 $ 287,779
Net Realized Gain/(Loss)............ (931,934) 1,498,971 2,591,950 (303,897)
Net Change in Unrealized
Appreciation/(Depreciation) on
Investments...................... (5,552,665) (1,243,457) (7,314,696) 4,763,550
------------ ------------ ------------ -----------
Net Increase/(Decrease) in Net
Assets Resulting From
Operations....................... (5,920,935) 1,038,026 (4,595,910) 4,747,432
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income............... (582,663) (763,947) (129,003) (279,098)
------------ ------------ ------------ -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold........... 6,014,981 30,026,191 13,294,295 41,220,808
Value of Shares Reinvested.......... 10,755 6,721 893 1,567
Value of Shares Repurchased......... (11,963,950) (11,904,315) (22,521,342) --
------------ ------------ ------------ -----------
Net Increase/(Decrease) in Net
Assets Resulting From Share
Transactions..................... (5,938,214) 18,128,597 (9,226,154) 41,222,375
------------ ------------ ------------ -----------
Increase/(Decrease) in Net
Assets......................... (12,441,812) 18,402,676 (13,951,067) 45,690,709
NET ASSETS--BEGINNING OF PERIOD....... 39,634,865 21,232,189 63,340,037 17,649,328
------------ ------------ ------------ -----------
NET ASSETS--END OF PERIOD(1).......... $ 27,193,053 $ 39,634,865 $ 49,388,970 $63,340,037
============ ============ ============ ===========
(1) Including Undistributed Net
Investment Income................... $ 52,042 $ 71,041 $ 13,047 $ 15,214
============ ============ ============ ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold......................... 200,000 850,000 350,000 1,100,000
Shares Reinvested................... 358 192 24 41
Shares Repurchased.................. (400,000) (350,000) (600,000) --
Shares Outstanding, Beginning of
Period........................... 1,150,192 650,000 1,600,041 500,000
------------ ------------ ------------ -----------
Shares Outstanding, End of Period... 950,550 1,150,192 1,350,065 1,600,041
============ ============ ============ ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 55
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P MIDCAP 400 PURE VALUE RYDEX S&P MIDCAP 400 PURE GROWTH
ETF ETF
--------------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
-------------- ---------------- -------------- ----------------
OPERATIONS
Net Investment Income............... $ 204,553 $ 431,034 $ 5,521 $ 121,930
Net Realized Gain/(Loss)............ (174,546) 1,170,195 909,547 1,847,506
Net Change in Unrealized
Appreciation/(Depreciation) on
Investments...................... (2,020,763) (1,114,000) (2,245,128) 2,040,810
----------- ------------ ------------ ------------
Net Increase/(Decrease) in Net
Assets Resulting From
Operations....................... (1,990,756) 487,229 (1,330,060) 4,010,246
----------- ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income............... (182,927) (425,129) (13,818) (118,480)
Net Realized Gains.................. -- -- -- (64,208)
----------- ------------ ------------ ------------
Total Distributions................. (182,927) (425,129) (13,818) (182,688)
----------- ------------ ------------ ------------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold........... -- 20,533,730 10,426,073 8,630,176
Value of Shares Reinvested.......... 1,369 2,802 170 432
Value of Shares Repurchased......... (4,886,391) (14,113,540) (13,460,071) (14,090,678)
----------- ------------ ------------ ------------
Net Increase/(Decrease) in Net
Assets Resulting From Share
Transactions..................... (4,885,022) 6,422,992 (3,033,828) (5,460,070)
----------- ------------ ------------ ------------
Increase/(Decrease) in Net
Assets......................... (7,058,705) 6,485,092 (4,377,706) (1,632,512)
NET ASSETS--BEGINNING OF PERIOD....... 21,457,628 14,972,536 20,914,206 22,546,718
----------- ------------ ------------ ------------
NET ASSETS--END OF PERIOD(1).......... $14,398,923 $ 21,457,628 $ 16,536,500 $ 20,914,206
=========== ============ ============ ============
(1) Including Undistributed Net
Investment Income................... $ 29,479 $ 7,853 $ (2,478) $ 5,819
=========== ============ ============ ============
CHANGES IN SHARES OUTSTANDING:
Shares Sold......................... -- 550,000 200,000 150,000
Shares Reinvested................... 43 78 3 8
Shares Repurchased.................. (150,000) (400,000) (250,000) (250,000)
Shares Outstanding, Beginning of
Period........................... 600,078 450,000 350,008 450,000
----------- ------------ ------------ ------------
Shares Outstanding, End of Period... 450,121 600,078 300,011 350,008
=========== ============ ============ ============
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 56
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 ENDED SIX MONTHS ENDED
APRIL 30, 2008 YEAR ENDED APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
---------------- ---------------- ---------------- ----------------
OPERATIONS
Net Investment Income.......... $ 286,353 $ 341,437 $ 23,185 $ 189
Net Realized Gain/(Loss)....... (1,660,565) (164,386) 317,926 470,249
Net Change in Unrealized
Appreciation/(Depreciation)
on Investments.............. (1,590,350) (2,989,872) (1,530,065) 855,709
----------- ----------- ----------- -----------
Net Increase/(Decrease) in Net
Assets Resulting From
Operations.................. (2,964,562) (2,812,821) (1,188,954) 1,326,147
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net Investment Income.......... (223,805) (304,472) (23,528) (4,792)
Capital........................ -- (9,172) -- --
----------- ----------- ----------- -----------
Total Distributions to
Shareholders................ (223,805) (313,644) (23,528) (4,792)
----------- ----------- ----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold...... 12,729,553 21,411,904 -- 4,219,106
Value of Shares Reinvested..... 433 883 111 44
Value of Shares Repurchased.... (5,132,560) (1,879,073) (4,251,773) (2,131,084)
----------- ----------- ----------- -----------
Net Increase/(Decrease) in Net
Assets Resulting From Share
Transactions................ 7,597,426 19,533,714 (4,251,662) 2,088,066
----------- ----------- ----------- -----------
Increase/Decrease in Net
Assets.................... 4,409,059 16,407,249 (5,464,144) 3,409,421
NET ASSETS--BEGINNING OF PERIOD.. 22,426,344 6,019,095 11,229,106 7,819,685
----------- ----------- ----------- -----------
NET ASSETS--END OF PERIOD(1)..... $26,835,403 $22,426,344 $ 5,764,962 $11,229,106
=========== =========== =========== ===========
(1) Including
Undistributed/(Overdistrib-
uted) Net Investment Income.. $ 62,548 $ -- $ (343) $ --
=========== =========== =========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold.................... 400,000 500,000 -- 100,000
Shares Reinvested.............. 13 21 3 1
Shares Repurchased............. (150,000) (50,000) (100,000) (50,000)
Shares Outstanding, Beginning
of Period................... 600,021 150,000 250,001 200,000
----------- ----------- ----------- -----------
Shares Outstanding, End of
Period...................... 850,034 600,021 150,004 250,001
=========== =========== =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 57
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT
CONSUMER DISCRETIONARY ETF CONSUMER STAPLES ETF
------------------------------------ ------------------------------------
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
---------------- ----------------- ---------------- -----------------
OPERATIONS
Net Investment Income........ $ 130,675 $ 256,800 $ 76,678 $ 173,946
Net Realized Gain/(Loss)..... (1,762,467) (3,021,999) 19,236 (50,768)
Net Change in Unrealized
Appreciation/(Deprecia-
tion) on Investments...... (1,303,954) (954,292) (151,947) 707,686
------------ ------------- ----------- -----------
Net Increase/(Decrease) in
Net Assets Resulting From
Operations................ (2,935,746) (3,719,491) (56,033) 830,864
------------ ------------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net Investment Income........ (136,167) (246,829) (70,088) (166,325)
------------ ------------- ----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold.... 45,856,438 164,688,912 4,791,047 9,840,904
Value of Shares Reinvested... -- -- -- --
Value of Shares Repurchased.. (64,053,450) (131,794,661) -- (2,603,337)
------------ ------------- ----------- -----------
Net Increase/(Decrease) in
Net Assets Resulting From
Share Transactions........ (18,197,012) 32,894,251 4,791,047 7,237,567
------------ ------------- ----------- -----------
Increase/(Decrease) in Net
Assets.................. (21,268,925) 28,927,931 4,664,926 7,902,106
NET ASSETS--BEGINNING OF
PERIOD....................... 28,927,931 -- 7,902,106 --
------------ ------------- ----------- -----------
NET ASSETS--END OF PERIOD(1)... $ 7,659,006 $ 28,927,931 $12,567,032 $ 7,902,106
============ ============= =========== ===========
(1) Including Undistributed Net
Investment
Income...................... $ 4,479 $ 9,971 $ 14,211 $ 7,621
============ ============= =========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold.................. 1,150,000 3,550,000 100,000 200,000
Shares Reinvested............ -- -- -- --
Shares Repurchased........... (1,600,000) (2,900,000) -- (50,000)
Shares Outstanding, Beginning
of Period................. 650,000 -- 150,000 --
------------ ------------- ----------- -----------
Shares Outstanding, End of
Period.................... 200,000 650,000 250,000 150,000
============ ============= =========== ===========
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 58
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL RYDEX S&P EQUAL
WEIGHT ENERGY ETF WEIGHT FINANCIALS ETF
---------------------------------- ----------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED NOVEMBER 1, 2006* ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
-------------- ----------------- -------------- -----------------
OPERATIONS
Net Investment Income............ $ 29,309 $ 39,906 $ 79,965 $ 105,693
Net Realized Gain/(Loss)......... 1,065,741 260,240 (162,551) 393,350
Net Change in Unrealized
Appreciation/(Depreciation) on
Investments................... (262,124) 2,611,551 (1,280,258) (330,105)
----------- ----------- ----------- ------------
Net Increase/(Decrease) in Net
Assets Resulting From
Operations.................... 832,926 2,911,697 (1,362,844) 168,938
----------- ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income............ (29,627) (42,062) (70,834) (98,785)
Net Realized Gains............... (269,337) -- -- --
----------- ----------- ----------- ------------
Total Distributions.............. (298,964) -- -- --
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold........ 6,873,049 7,251,932 -- 31,922,837
Value of Shares Reinvested....... 343 -- -- --
Value of Shares Repurchased...... (3,211,449) -- -- (24,993,170)
----------- ----------- ----------- ------------
Net Increase in Net Assets
Resulting From Share
Transactions.................. 3,661,943 7,251,932 (1,433,678) 6,929,667
----------- ----------- ----------- ------------
Increase/(Decrease) in Net
Assets...................... 4,195,905 10,121,567 -- 6,999,820
NET ASSETS--BEGINNING OF PERIOD.... 10,121,567 -- 6,999,820 --
----------- ----------- ----------- ------------
NET ASSETS--END OF PERIOD(1)....... $14,317,472 $10,121,567 $ 5,566,142 $ 6,999,820
=========== =========== =========== ============
(1) Including
Undistributed/(Overdistributed)
Net Investment Income/(Loss)... $ (318) $ -- $ 9,131 $ --
=========== =========== =========== ============
CHANGES IN SHARES OUTSTANDING:
Shares Sold...................... 100,000 150,000 -- 650,000
Shares Reinvested................ 5 -- -- --
Shares Repurchased............... (50,000) -- -- (500,000)
Shares Outstanding, Beginning of
Period........................ 150,000 -- 150,000 --
----------- ----------- ----------- ------------
Shares Outstanding, End of
Period........................ 200,005 150,000 150,000 150,000
=========== =========== =========== ============
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 59
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL RYDEX S&P EQUAL
WEIGHT HEALTH CARE ETF WEIGHT INDUSTRIALS ETF
---------------------------------- ------------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED NOVEMBER 1, 2006* ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
-------------- ----------------- -------------- -----------------
OPERATIONS
Net Investment Income............ $ 25,771 $ 39,168 $ 51,335 $ 84,478
Net Realized Gain................ 78,980 1,090,098 113,961 253,601
Net Change in Unrealized
Appreciation/(Depreciation) on
Investments................... (1,742,759) (147,337) 37,578 1,276,411
----------- ------------ ----------- ----------
Net Increase/(Decrease) in Net
Assets Resulting From
Operations.................... (1,638,008) 981,929 202,874 1,614,490
----------- ------------ ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income............ (23,602) (37,003) (47,983) (81,906)
Net Realized Gains............... -- -- (266,443) --
----------- ------------ ----------- ----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold........ 48,158,532 36,174,181 5,153,009 7,372,663
Value of Shares Reinvested....... -- -- -- --
Value of Shares Repurchased...... (5,598,834) (19,736,519) -- --
----------- ------------ ----------- ----------
Net Increase in Net Assets
Resulting From Share
Transactions.................. 42,559,698 16,437,662 5,153,009 7,372,663
----------- ------------ ----------- ----------
Increase in Net Assets........ 40,898,088 17,382,588 5,041,457 8,905,247
NET ASSETS--BEGINNING OF PERIOD.... 17,382,588 -- 8,905,247 --
----------- ------------ ----------- ----------
NET ASSETS--END OF PERIOD(1)....... $58,280,676 $ 17,382,588 $13,946,704 $8,905,247
=========== ============ =========== ==========
(1) Including Undistributed Net
Investment Income................ $ 4,334 $ 2,165 $ 5,299 $ 1,947
=========== ============ =========== ==========
CHANGES IN SHARES OUTSTANDING:
Shares Sold...................... 900,000 650,000 100,000 150,000
Shares Reinvested................ -- -- -- --
Shares Repurchased............... (100,000) (350,000) -- --
Shares Outstanding, Beginning of
Period........................ 300,000 -- 150,000 --
----------- ------------ ----------- ----------
Shares Outstanding, End of
Period........................ 1,100,000 300,000 250,000 150,000
=========== ============ =========== ==========
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 60
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL RYDEX S&P EQUAL
WEIGHT MATERIALS ETF WEIGHT TECHNOLOGY ETF
------------------------------------ ------------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED NOVEMBER 1, 2006* ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
-------------- ----------------- -------------- -----------------
OPERATIONS
Net Investment Income/(Loss)... $ 120,788 $ 128,347 $ 7,630 $ (11,089)
Net Realized Gain.............. 239,771 1,084,454 71,606 1,406,629
Net Change in Unrealized
Appreciation/(Depreciation)
on Investments.............. (853,015) 538,441 (2,974,655) 494,556
----------- ------------ ----------- -----------
Net Increase/(Decrease) in Net
Assets Resulting From
Operations.................. (492,456) 1,751,242 (2,895,419) 1,890,096
----------- ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net Investment Income.......... (122,463) (119,952) (14,042) --
----------- ------------ ----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold...... -- 26,216,591 9,412,576 25,589,410
Value of Shares Reinvested..... -- -- -- --
Value of Shares Repurchased.... (5,543,626) (18,934,408) (4,605,642) (8,167,496)
----------- ------------ ----------- -----------
Net Increase/(Decrease) in Net
Assets Resulting From Share
Transactions................ (5,543,626) 7,282,183 4,806,934 17,421,914
----------- ------------ ----------- -----------
Increase/(Decrease) in Net
Assets.................... (6,158,545) 8,913,473 1,897,473 19,312,010
NET ASSETS--BEGINNING OF PERIOD.. 8,913,473 -- 19,312,010 --
----------- ------------ ----------- -----------
NET ASSETS--END OF PERIOD(1)..... $ 2,754,928 $ 8,913,473 $21,209,483 $19,312,010
=========== ============ =========== ===========
(1) Including Undistributed Net
Investment Income............ $ 6,720 $ 8,395 $ (6,412) $ --
=========== ============ =========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold.................... -- 500,000 200,000 500,000
Shares Reinvested.............. -- -- -- --
Shares Repurchased............. (100,000) (350,000) (100,000) (150,000)
Shares Outstanding, Beginning
of Period................... 150,000 -- 350,000 --
----------- ------------ ----------- -----------
Shares Outstanding, End of
Period...................... 50,000 150,000 450,000 350,000
=========== ============ =========== ===========
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 61
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL
WEIGHT UTILITIES ETF
----------------------------------
SIX MONTHS FOR THE PERIOD
ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007
-------------- -----------------
OPERATIONS
Net Investment Income................................. $ 86,341 $ 217,228
Net Realized Gain..................................... 43,622 661,560
Net Change in Unrealized Appreciation/(Depreciation)
on Investments..................................... (706,941) 481,937
---------- -----------
Net Increase/(Decrease) in Net Assets Resulting From
Operations......................................... (576,978) 1,360,725
---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income................................. (86,125) (203,649)
---------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold............................. -- 13,839,342
Value of Shares Reinvested............................ -- --
Value of Shares Repurchased........................... -- (8,767,932)
---------- -----------
Net Increase in Net Assets Resulting From Share
Transactions....................................... -- 5,071,410
---------- -----------
Increase/(Decrease) in Net Assets.................. (663,103) 6,228,486
NET ASSETS--BEGINNING OF PERIOD......................... 6,228,486 --
---------- -----------
NET ASSETS--END OF PERIOD(1)............................ $5,565,383 $ 6,228,486
========== ===========
(1) Including Undistributed Net Investment Income....... $ 13,795 $ 13,579
========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................................... -- 250,000
Shares Reinvested..................................... -- --
Shares Repurchased.................................... -- (150,000)
Shares Outstanding, Beginning of Period............... 100,000 --
---------- -----------
Shares Outstanding, End of Period..................... 100,000 100,000
========== ===========
</Table>
* The Fund commenced operations on November 1, 2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 62
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P 500 PURE VALUE ETF RYDEX S&P 500 PURE GROWTH ETF
------------------------------------------------------ ----------------------------------
SIX MONTHS FOR THE PERIOD SIX MONTHS
ENDED MARCH 1, 2006* ENDED
APRIL 30, 2008 YEAR ENDED THROUGH APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007 OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2007
-------------- ---------------- ---------------- -------------- ----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF
PERIOD.............. $34.46 $32.66 $29.87 $39.59 $35.30
------- ------- ------- ------- -------
Net Investment
Income**............ 0.54 0.75 0.49 0.09 0.25
Net Realized and
Unrealized
Gain/(Loss) on
Investments......... (5.81) 1.80 2.58 (3.00) 4.26
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS.......... (5.27) 2.55 3.07 (2.91) 4.51
------- ------- ------- ------- -------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment
Income.............. (0.58) (0.75) (0.28) (0.10) (0.22)
------- ------- ------- ------- -------
NET ASSET VALUE AT END
OF PERIOD........... $28.61 $34.46 $32.66 $36.58 $39.59
======= ======= ======= ======= =======
TOTAL RETURN***....... (15.36)% 7.79% 10.27% (7.33)% 12.79%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at End of
Period (000's
Omitted)............ $27,193 $39,635 $21,232 $49,389 $63,340
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.............. 0.35%**** 0.35% 0.35%**** 0.35%**** 0.35%
Net Investment
Income.............. 3.54%**** 2.15% 2.37%**** 0.51%**** 0.66%
Portfolio Turnover
Rate+............... 41% 26% 4% 22% 24%
<Caption>
RYDEX S&P 500
PURE GROWTH ETF
----------------
FOR THE PERIOD
MARCH 1, 2006*
THROUGH
OCTOBER 31, 2006
----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF
PERIOD.............. $34.42
-------
Net Investment
Income**............ 0.11
Net Realized and
Unrealized
Gain/(Loss) on
Investments......... 0.84
-------
TOTAL FROM INVESTMENT
OPERATIONS.......... 0.95
-------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment
Income.............. (0.07)
-------
NET ASSET VALUE AT END
OF PERIOD........... $35.30
=======
TOTAL RETURN***....... 2.77%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets at End of
Period (000's
Omitted)............ $17,649
RATIO TO AVERAGE NET
ASSETS OF:
Expenses.............. 0.35%****
Net Investment
Income.............. 0.48%****
Portfolio Turnover
Rate+............... 7%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 63
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<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
ENDED MARCH 1, 2006* ENDED
APRIL 30, 2008 YEAR ENDED THROUGH APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007 OCTOBER 31, 2006 (UNAUDITED) OCTOBER 31, 2007
-------------- ---------------- ---------------- -------------- ----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD.... $35.76 $33.27 $31.53 $59.75 $50.10
------- ------- ------- ------- -------
Net Investment Income**.. 0.43 0.82 0.44 0.02 0.33
Net Realized and
Unrealized Gain/(Loss)
on Investments......... (3.79) 2.48 1.60 (4.61) 9.73
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT
OPERATIONS............. (3.36) 3.30 2.04 (4.59) 10.06
------- ------- ------- ------- -------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income.... (0.41) (0.81) (0.30) (0.04) (0.27)
------- ------- ------- ------- -------
Net Realized Gains....... -- -- -- -- (0.14)
------- ------- ------- ------- -------
Total Distributions...... (0.41) (0.81) (0.30) (0.04) (0.41)
------- ------- ------- ------- -------
NET ASSET VALUE AT END OF
PERIOD................. $31.99 $35.76 $33.27 $55.12 $59.75
======= ======= ======= ======= =======
TOTAL RETURN***.......... (9.38)% 9.94% 6.48% (7.69)% 20.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
Omitted)............... $14,399 $21,458 $14,973 $16,537 $20,914
RATIO TO AVERAGE NET
ASSETS OF:
Expenses................. 0.35%**** 0.35% 0.35%**** 0.35%**** 0.35%
Net Investment Income.... 2.71%**** 2.28% 2.07%**** 0.06% 0.60%
Portfolio Turnover
Rate+.................. 52% 46% 4% 41% 53%
<Caption>
RYDEX S&P MIDCAP
400
PURE GROWTH ETF
----------------
FOR THE PERIOD
MARCH 1, 2006*
THROUGH
OCTOBER 31, 2006
----------------
PER SHARE OPERATING
PERFORMANCE:
NET ASSET VALUE AT
BEGINNING OF PERIOD.... $52.62
-------
Net Investment Income**.. 0.02
Net Realized and
Unrealized Gain/(Loss)
on Investments......... (2.53)
-------
TOTAL FROM INVESTMENT
OPERATIONS............. (2.51)
-------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net Investment Income.... (0.01)
-------
Net Realized Gains....... --
-------
Total Distributions...... (0.01)
-------
NET ASSET VALUE AT END OF
PERIOD................. $50.10
=======
TOTAL RETURN***.......... (4.76)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of
Period (000's
Omitted)............... $22,547
RATIO TO AVERAGE NET
ASSETS OF:
Expenses................. 0.35%****
Net Investment Income.... 0.07%
Portfolio Turnover
Rate+.................. 14%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 64
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P SMALLCAP 600 RYDEX S&P SMALLCAP 600
PURE VALUE ETF PURE GROWTH ETF
-------------------------------------------- --------------------------------------------
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS MARCH 1, 2006* SIX MONTHS MARCH 1, 2006*
ENDED YEAR ENDED THROUGH ENDED YEAR ENDED THROUGH
APRIL 30, 2008 OCTOBER 31, OCTOBER 31, APRIL 30, 2008 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 2007 2006 (UNAUDITED) 2007 2006
-------------- -------------- -------------- -------------- -------------- --------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF
PERIOD........................ $37.38 $40.13 $38.45 $44.92 $39.10 $39.31
------- ------- ------ ------ ------- ------
Net Investment Income/(Loss)**.. 0.41 0.74 0.37 0.13 -- (0.01)
Net Realized and Unrealized
Gain/(Loss) on Investments.... (5.92) (2.85) 1.62 (6.46) 5.84 (0.20)
------- ------- ------ ------ ------- ------
TOTAL FROM INVESTMENT
OPERATIONS.................... (5.51) (2.11) 1.99 (6.33) 5.84 (0.21)
------- ------- ------ ------ ------- ------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net Investment Income........... (0.30) (0.62) (0.31) (0.16) (0.02) --
Capital......................... -- (0.02) -- -- -- --
------- ------- ------ ------ ------- ------
Total Distributions............. -- (0.64) (0.31) -- (0.02) --
------- ------- ------ ------ ------- ------
NET ASSET VALUE AT END OF
PERIOD........................ $31.57 $37.38 $40.13 $38.43 $44.92 $39.10
======= ======= ====== ====== ======= ======
TOTAL RETURN***................. (14.76)% (5.38)% 5.19% (14.07)% 14.93% (0.55)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period
(000's Omitted)............... $26,835 $22,426 $6,019 $5,765 $11,229 $7,820
RATIO TO AVERAGE NET ASSETS OF:
Expenses........................ 0.35%**** 0.35% 0.35%**** 0.35%**** 0.35% 0.35%****
Net Investment Income/(Loss).... 2.51%**** 1.78% 1.46%**** 0.69%**** 0.00% (0.04)%****
Portfolio Turnover Rate+........ 46% 37% 7% 49% 51% 14%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 65
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT RYDEX S&P EQUAL WEIGHT
CONSUMER DISCRETIONARY ETF CONSUMER STAPLES ETF
------------------------------------ ------------------------------------
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
---------------- ----------------- ---------------- -----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF
PERIOD.......................... $44.50 $44.98 $52.68 $48.16
------ ------- ------- ------
Net Investment Income**........... 0.29 0.32 0.43 1.16
Net Realized and Unrealized
Gain/(Loss) on Investments...... (6.15) (0.49) (2.47) 4.32
------ ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS.. (5.86) (0.17) (2.04) 5.48
------ ------- ------- ------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net Investment Income............. (0.34) (0.31) (0.37) (0.96)
------ ------- ------- ------
NET ASSET VALUE AT END OF PERIOD.. $38.30 $44.50 $50.27 $52.68
====== ======= ======= ======
TOTAL RETURN***................... (13.18)% (0.40)% (3.89)% 11.45%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's
omitted)........................ $7,659 $28,928 $12,567 $7,902
RATIO TO AVERAGE NET ASSETS OF:
Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50%
Net Investment Income............. 1.52%**** 0.67% 1.72%**** 2.29%
Portfolio Turnover Rate+.......... 13% 28% 11% 19%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 66
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT FINANCIALS
RYDEX S&P EQUAL WEIGHT ENERGY ETF ETF
------------------------------------ ------------------------------------
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
---------------- ----------------- ---------------- -----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF
PERIOD.......................... $67.48 $48.35 $46.67 $48.57
------- ------- ------ ------
Net Investment Income**........... 0.14 0.27 0.53 0.92
Net Realized and Unrealized
Gain/(Loss) on Investments...... 5.92 19.14 (9.62) (1.95)
------- ------- ------ ------
TOTAL FROM INVESTMENT OPERATIONS.. 6.06 19.41 (9.09) (1.03)
------- ------- ------ ------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net Investment Income............. (0.15) (0.28) (0.47) (0.87)
Net Realized Gains................ (1.80) -- -- --
------- ------- ------ ------
Total Distributions............... (1.95) (0.28) (0.47) (0.87)
------- ------- ------ ------
NET ASSET VALUE AT END OF PERIOD.. $71.59 $67.48 $37.11 $46.67
======= ======= ====== ======
TOTAL RETURN***................... 9.11% 40.28% (19.48)% (2.23)%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's
omitted)........................ $14,317 $10,122 $5,566 $7,000
RATIO TO AVERAGE NET ASSETS OF:
Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50%
Net Investment Income............. 0.43%**** 0.47% 2.75%**** 1.84%
Portfolio Turnover Rate+.......... 18% 34% 19% 31%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 67
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL RYDEX S&P EQUAL
WEIGHT HEALTH CARE ETF WEIGHT INDUSTRIALS ETF
------------------------------------ ------------------------------------
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
---------------- ----------------- ---------------- -----------------
- ----------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF
PERIOD.......................... $57.94 $49.46 $59.37 $49.15
------- ------- ------- ------
Net Investment Income**........... 0.06 0.11 0.29 0.56
Net Realized and Unrealized
Gain/(Loss) on Investments...... (4.95) 8.48 (1.83) 10.21
------- ------- ------- ------
TOTAL FROM INVESTMENT OPERATIONS.. (4.89) 8.59 (1.54) 10.77
------- ------- ------- ------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net Investment Income............. (0.07) (0.11) (0.26) (0.55)
Net Realized Gains................ -- -- (1.78) --
------- ------- ------- ------
Total Distribution................ (0.07) (0.11) (2.04) (0.55)
------- ------- ------- ------
NET ASSET VALUE AT END OF PERIOD.. $52.98 $57.94 $55.79 $59.37
======= ======= ======= ======
TOTAL RETURN***................... (8.45)% 17.37% (2.61)% 22.00%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's
omitted)........................ $58,281 $17,383 $13,947 $8,905
RATIO TO AVERAGE NET ASSETS OF:
Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50%
Net Investment Income............. 0.22%**** 0.20% 1.07%**** 1.02%
Portfolio Turnover Rate+.......... 12% 55% 16% 36%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 68
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL RYDEX S&P EQUAL
WEIGHT MATERIALS ETF WEIGHT TECHNOLOGY ETF
------------------------------------ ------------------------------------
FOR THE PERIOD FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 1, 2006* SIX MONTHS ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007 (UNAUDITED) OCTOBER 31, 2007
---------------- ----------------- ---------------- -----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF
PERIOD.......................... $59.42 $48.43 $55.18 $47.80
------ ------ ------- -------
Net Investment Income/(Loss)**.... 0.88 0.85 0.02 (0.05)
Net Realized and Unrealized
Gain/(Loss) on Investments...... (4.38) 10.74 (8.04) 7.43
------ ------ ------- -------
TOTAL FROM INVESTMENT OPERATIONS.. (3.50) 11.59 (8.02) 7.38
------ ------ ------- -------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net Investment Income............. (0.82) (0.60) (0.03) --
------ ------ ------- -------
NET ASSET VALUE AT END OF PERIOD
(000'S OMITTED)................. $55.10 $59.42 $47.13 $55.18
====== ====== ======= =======
TOTAL RETURN***................... (5.90)% 24.02% (14.53)% 15.44%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's
omitted)........................ $2,755 $8,913 $21,209 $19,312
RATIO TO AVERAGE NET ASSETS OF:
Expenses.......................... 0.50%**** 0.50% 0.50%**** 0.50%
Net Investment Income/(Loss)...... 3.27%**** 1.53% 0.07%**** (0.10)%
Portfolio Turnover Rate+.......... 14% 31% 20% 60%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 69
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX S&P EQUAL WEIGHT UTILITIES ETF
------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED NOVEMBER 1, 2006*
APRIL 30, 2008 THROUGH
(UNAUDITED) OCTOBER 31, 2007
---------------- -----------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF PERIOD................ $62.28 $54.91
------ ------
Net Investment Income**............................... 0.86 1.55
Net Realized and Unrealized Gain/(Loss) on
Investments**....................................... (6.63) 7.38
------ ------
TOTAL FROM INVESTMENT OPERATIONS...................... (5.77) 8.93
------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income................................. (0.86) (1.56)
------ ------
NET ASSET VALUE AT END OF PERIOD...................... $55.65 $62.28
====== ======
TOTAL RETURN***....................................... (9.30)% 16.41%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's omitted)........... $5,565 $6,228
RATIO TO AVERAGE NET ASSETS OF:
Expenses.............................................. 0.50%**** 0.50%
Net Investment Income................................. 3.02%**** 2.59%
Portfolio Turnover Rate+.............................. 13% 20%
</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 distribution at net asset value during the period,
and redemption on the last day of the period. Transaction fees are not
reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
**** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 70
NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
1. ORGANIZATION
Rydex ETF Trust (the "Trust") is an open-end, management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act"). The Trust was organized as a Delaware statutory trust on November 22,
2002. As of April 30, 2008, the Trust offers twenty three portfolios, each of
which represents a separate series of beneficial interest in the Trust, (each a
"Fund" and collectively, the "Funds"). The financial statement herein relate to
the following Funds: Rydex S&P 500 Pure Value ETF, Rydex S&P 500 Pure Growth
ETF, Rydex S&P MidCap 400 Pure Value ETF, Rydex S&P MidCap 400 Pure Growth ETF,
Rydex S&P SmallCap 600 Pure Value ETF, Rydex S&P SmallCap 600 Pure Growth ETF,
Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal Weight
Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal Weight
Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal Weight
Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal Weight
Technology ETF and Rydex S&P Equal Weight Utilities ETF. Rydex S&P 500 Pure
Value ETF, Rydex S&P 500 Pure Growth ETF, Rydex S&P MidCap 400 Pure Value ETF,
Rydex S&P MidCap 400 Pure Growth ETF, Rydex S&P SmallCap 600 Pure Value ETF and
Rydex S&P SmallCap 600 Pure Growth ETF commenced operations on March 1, 2006.
Rydex S&P Equal Weight Consumer Discretionary ETF, Rydex S&P Equal Weight
Consumer Staples ETF, Rydex S&P Equal Weight Energy ETF, Rydex S&P Equal Weight
Financials ETF, Rydex S&P Equal Weight Health Care ETF, Rydex S&P Equal Weight
Industrials ETF, Rydex S&P Equal Weight Materials ETF, Rydex S&P Equal Weight
Technology ETF and Rydex S&P Equal Weight Utilities ETF commenced operations on
November 1, 2006.
The Funds' investment objective is to provide investment results that correspond
generally to the performance, before fees and expenses, of an index representing
publicly traded equity securities (the "Underlying Index"). Rydex S&P 500 Pure
Value ETF tracks the S&P 500/Citigroup Pure Value Index, the Rydex S&P 500 Pure
Growth ETF tracks the S&P 500/Citigroup Pure Growth Index, the Rydex S&P MidCap
400 Pure Value ETF tracks the S&P MidCap 400/Citigroup Pure Value Index, the
Rydex S&P MidCap 400 Pure Growth ETF tracks the S&P MidCap 400/Citigroup Pure
Growth Index, the Rydex S&P SmallCap 600 Pure Value ETF tracks the S&P SmallCap
600/Citigroup Pure Value Index, the Rydex S&P SmallCap 600 Pure Growth ETF
tracks the S&P SmallCap 600/Citigroup Pure Growth Index, Rydex S&P Equal Weight
Consumer Discretionary ETF tracks the S&P Equal Weight Index Consumer
Discretionary, the Rydex S&P Equal Weight Consumer Staples ETF tracks the S&P
Equal Weight Index Consumer Staples, the Rydex S&P Equal Weight Energy ETF
tracks the S&P Equal Weight Index Energy, the Rydex S&P Equal Weight Financials
ETF tracks the S&P Equal Weight Index Financials, the Rydex S&P Equal Weight
Health Care ETF tracks the S&P Equal Weight Index Health Care, the Rydex S&P
Equal Weight Industrials ETF tracks the S&P Equal Weight Index Industrials, the
Rydex S&P Equal Weight Materials ETF tracks the S&P Equal Weight Index
Materials, the Rydex S&P Equal Weight Technology ETF tracks the S&P Equal Weight
Index Information Technology and the Rydex S&P Equal Weight Utilities ETF tracks
the S&P Equal Weight Index Telecommunication Services & Utilities. The Funds
seek to achieve their objective by investing in common stocks that comprise the
Underlying Index. The Funds use a "replication" strategy to track the Underlying
Index. "Replication" refers to investing in substantially all of the securities
in the Underlying Index in approximately the same proportions as in the
Underlying Index.
The Funds operate as index funds and are not actively managed. Adverse
performance of a security in the Funds' portfolio will ordinarily not result in
the elimination of the security from the Funds' portfolio.
The Funds issue and redeem shares on a continuous basis, at net asset value,
only in aggregations of 50,000 shares called a "Creation Unit". Creation Units
are issued and redeemed principally in-kind for securities included in the
Underlying Index.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosures at the date of the financial statements and
accompanying notes and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Management believes that the
estimates utilized in preparing the Funds' financial statements are reasonable
and prudent; however, actual results could differ from these estimates.
A. SECURITY VALUATION
Securities listed on a domestic securities exchange are valued based on the last
sale price as of the close of regular trading hours on the New York Stock
Exchange or, in the absence of recorded sales, are valued at the most recent bid
price. Securities for which the primary market is the National Association of
Securities Dealers Automated Quotations National Market System ("NASDAQ") are
valued at the NASDAQ Official Closing Price. The Funds invest in money market
mutual funds, which are valued at their NAV.
Securities, for which market quotations are not readily available, including
investments that are subject to limitations as to their sale, are valued at fair
value as determined in good faith by the Advisor in accordance with procedures
adopted by the Board of Trustees. In determining fair value, consideration is
given to market conditions, relative benchmarks and other financial data.
SEMI-ANNUAL REPORT 71
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
B. SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are recorded on the trade date. Realized gains and losses
from portfolio fund transactions are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date, net of foreign tax
withholdings. Interest income is recorded on the accrual basis.
C. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with financial institutions. In a
repurchase agreement, a Fund buys a security and the seller simultaneously
agrees to repurchase the security on a specified future date at an agreed-upon
price. The repurchase price reflects an agreed-upon interest rate during the
time the Fund's money is invested in the security. Because the security
constitutes collateral for the repurchase obligation, a repurchase agreement can
be considered a collateralized loan. The Funds follows certain procedures
designed to minimize the risks inherent in such agreements. These procedures
include effecting repurchase transactions only with large, well-capitalized and
well-established financial institutions whose condition will be continually
monitored by Rydex Global Advisors, which acts as the Funds' investment advisor
(the "Advisor"). In addition, the value of the collateral underlying the
repurchase agreement will always be at least equal to the repurchase price,
including any accrued interest earned on the repurchase agreement. In the event
of a default or bankruptcy by a selling financial institution, the Funds will
seek to liquidate such collateral. However, the exercising of the Funds right to
liquidate such collateral could involve certain costs or delays and, to the
extent that proceeds from any sale upon a default of the obligation to
repurchase were less than the repurchase price, the Funds could suffer a loss.
It is the current policy of the Funds not to invest in repurchase agreements
that do not mature within seven days if any such investment, together with any
other illiquid assets held by the Funds, amounts to more than 15% of the Funds
net assets. The investments of the Funds in repurchase agreements, at times, may
be substantial when, in the view of the Advisor, liquidity or other
considerations so warrant. For the six months ended April 30, 2008, the Funds
had not engaged in repurchase transactions.
D. FEDERAL INCOME TAXES
The Funds policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of the
taxable income and capital gains, if any, to the shareholders within the
allowable time limits. Therefore, no provision for Federal income taxes is
required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for in-kind redemptions, income reclassifications from real
estate investment trusts ("REITs") and losses deferred due to wash sales.
For the six months ended April 30, 2008, the Funds realized net capital gains
resulting from in-kind redemptions and other transactions. Because gains from
in-kind redemptions are not taxable to the Funds, and are not distributed to
existing Fund shareholders, the gains are reclassified from accumulated net
realized gains to paid-in-capital at the end of the Funds tax year. These
reclassifications have no effect on net assets or net asset value per share. The
in-kind net capital gains for the six months ended April 30, 2008 are disclosed
in the Fund's Statement of Operations.
At April 30, 2008, the Funds had capital loss carryforwards which may be
utilized to offset any net realized capital gains expiring October 31:
<Table>
<Caption>
2014 2015
------- --------
Rydex S&P 500 Pure Value ETF..................................... $ -- $ --
Rydex S&P 500 Pure Growth ETF.................................... 28,988 142,389
Rydex S&P MidCap 400 Pure Value ETF.............................. 94,708 13,767
Rydex S&P MidCap 400 Pure Growth ETF............................. -- --
Rydex S&P SmallCap 600 Pure Value ETF............................ 16,654 170,782
Rydex S&P SmallCap 600 Pure Growth ETF........................... -- --
Rydex S&P Equal Weight Consumer Discretionary ETF................ -- --
Rydex S&P Equal Weight Consumer Staples ETF...................... -- 54,862
Rydex S&P Equal Weight Energy ETF................................ -- --
Rydex S&P Equal Weight Financials ETF............................ -- --
Rydex S&P Equal Weight Health Care ETF........................... -- --
Rydex S&P Equal Weight Industrials ETF........................... -- --
Rydex S&P Equal Weight Materials ETF............................. -- --
Rydex S&P Equal Weight Technology ETF............................ -- --
Rydex S&P Equal Weight Utilities ETF............................. -- --
</Table>
E. DIVIDENDS AND DISTRIBUTIONS
The Funds declare and pay dividends from net investment income and distribute
from net realized capital gains at least annually.
SEMI-ANNUAL REPORT 72
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
F. RISK AND UNCERTAINTIES
The Trust invests in various investments which are exposed to risk, such as
market risk. Due to the level of risk associated with certain investments it is
at least reasonably possible that changes in the values of investment securities
will occur in the near term and that such changes could materially affect
amounts reported in the financial statements. The Rydex S&P Equal Weight Sector
ETFs are non-diversified funds, subjecting them to a greater risk than funds
that are diversified.
G. NEW ACCOUNTING PRONOUNCEMENTS
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet a more-likely-than-not threshold
would be recorded as a tax expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date.
Management evaluated the implications of FIN 48 and determined that all tax
positions meet the "more-likely than not" threshold. As a result, the financial
statements have not been impacted by the adoption of FIN 48. However,
management's conclusions regarding FIN 48 are subject to review and adjustment
at a later date based on factors including, but not limited to, further
implementation guidance expected from FASB, and on-going analysis of tax laws,
regulation, and interpretations thereof.
In September, 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements ("SFAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact, if any, the
adoption of SFAS 157 will have on the Funds' financial statements. Management
does not anticipate SFAS 157 will have a material impact on the Funds' financial
statements.
In March, 2008, Statement of Financial Accounting Standards No. 161,
"Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161")
was issued and is effective for fiscal years and interim periods beginning after
November 15, 2008. SFAS 161 requires enhanced disclosures about Funds'
derivative and hedging activities. Management is currently evaluating the
impact, if any, the adoption of SFAS 161 will have on the Funds' financial
statement disclosures.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor determines the composition of the portfolio of securities that must
be delivered in exchange for the issuance of Creation Units and periodically
adjusts the composition of the portfolio of the Funds to conform to changes in
the composition of the relevant index. For these services, the Advisor receives
an advisory fee at the annual rate shown below of the average daily net assets
of the Funds.
<Table>
<Caption>
ADVISORY FEE
------------
Rydex S&P 500 Pure Value ETF......................................... 0.35%
Rydex S&P 500 Pure Growth ETF........................................ 0.35%
Rydex S&P MidCap 400 Pure Value ETF.................................. 0.35%
Rydex S&P MidCap 400 Pure Growth ETF................................. 0.35%
Rydex S&P SmallCap 600 Pure Value ETF................................ 0.35%
Rydex S&P SmallCap 600 Pure Growth ETF............................... 0.35%
Rydex S&P Equal Weight Consumer Discretionary ETF.................... 0.50%
Rydex S&P Equal Weight Consumer Staples ETF.......................... 0.50%
Rydex S&P Equal Weight Energy ETF.................................... 0.50%
Rydex S&P Equal Weight Financials ETF................................ 0.50%
Rydex S&P Equal Weight Health Care ETF............................... 0.50%
Rydex S&P Equal Weight Industrials ETF............................... 0.50%
Rydex S&P Equal Weight Materials ETF................................. 0.50%
Rydex S&P Equal Weight Technology ETF................................ 0.50%
Rydex S&P Equal Weight Utilities ETF................................. 0.50%
</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
SEMI-ANNUAL REPORT 73
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Agreement with the Trust, the Administrator acts as a transfer agent for the
Trust's authorized and issued shares of beneficial interest, and as dividend
disbursing agent of the Trust. The Advisor compensates the Administrator
directly for the foregoing services.
The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to
pay distribution fees to Rydex Distributors, Inc. (the "Distributor") and other
firms that provide distribution services ("Service Providers"). If a Service
Provider provides distribution services, the Funds will pay distribution fees to
the Distributor at an annual rate not to exceed 0.25% of average daily net
assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor will, in turn,
pay the Service Provider out of its fees. No such fee is currently charged to
the Funds.
4. CAPITAL
At April 30, 2008, there were an unlimited number of no par value shares of
beneficial interest authorized. There is a minimum transaction fee per
transaction to those persons purchasing or redeeming Creation Units. An
additional charge of up to three times the standard transaction fee may be
imposed for purchases and redemptions effected outside the National Securities
Clearing Corporation usual clearing process or for cash. Such transactions are
generally permitted on an in-kind basis, with a balancing cash component to
equate the transaction to the net asset value per unit of the Fund on the
transaction date. The minimum transaction fees are:
<Table>
<Caption>
MINIMUM
TRANSACTION FEE
---------------
Rydex S&P 500 Pure Value ETF....................................... $1,000
Rydex S&P 500 Pure Growth ETF...................................... 1,000
Rydex S&P MidCap 400 Pure Value ETF................................ 750
Rydex S&P MidCap 400 Pure Growth ETF............................... 750
Rydex S&P SmallCap 600 Pure Value ETF.............................. 1,000
Rydex S&P SmallCap 600 Pure Growth ETF............................. 1,000
Rydex S&P Equal Weight Consumer Discretionary ETF.................. 750
Rydex S&P Equal Weight Consumer Staples ETF........................ 500
Rydex S&P Equal Weight Energy ETF.................................. 500
Rydex S&P Equal Weight Financials ETF.............................. 750
Rydex S&P Equal Weight Health Care ETF............................. 500
Rydex S&P Equal Weight Industrials ETF............................. 500
Rydex S&P Equal Weight Materials ETF............................... 500
Rydex S&P Equal Weight Technology ETF.............................. 750
Rydex S&P Equal Weight Utilities ETF............................... 500
</Table>
5. INVESTMENT TRANSACTIONS
For the six months ended April 30, 2008 the Funds had in-kind contributions and
in-kind redemptions as follows:
<Table>
<Caption>
SUBSCRIPTIONS REDEMPTIONS
------------- -----------
Rydex S&P 500 Pure Value ETF................................. $ 5,985,902 $11,843,159
Rydex S&P 500 Pure Growth ETF................................ 13,216,847 22,373,502
Rydex S&P MidCap 400 Pure Value ETF.......................... -- 4,756,051
Rydex S&P MidCap 400 Pure Growth ETF......................... 10,386,406 13,416,579
Rydex S&P SmallCap 600 Pure Value ETF........................ 12,563,055 5,113,009
Rydex S&P SmallCap 600 Pure Growth ETF....................... -- 4,254,691
Rydex S&P Equal Weight Consumer Discretionary ETF............ 45,750,004 63,969,077
Rydex S&P Equal Weight Consumer Staples ETF.................. 4,777,913 --
Rydex S&P Equal Weight Energy ETF............................ 6,874,552 3,212,343
Rydex S&P Equal Weight Financials ETF........................ -- --
Rydex S&P Equal Weight Health Care ETF....................... 48,054,192 5,471,377
Rydex S&P Equal Weight Industrials ETF....................... 5,137,610 --
Rydex S&P Equal Weight Materials ETF......................... -- 5,539,678
Rydex S&P Equal Weight Technology ETF........................ 9,414,896 4,609,894
Rydex S&P Equal Weight Utilities ETF......................... -- --
</Table>
SEMI-ANNUAL REPORT 74
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Purchases and sales of investment securities (excluding short-term investments,
U.S. government and government agency obligations) for the Funds were as
follows:
<Table>
<Caption>
PURCHASES SALES
----------- -----------
Rydex S&P 500 Pure Value ETF.................................. $18,144,075 $13,324,028
Rydex S&P 500 Pure Growth ETF................................. 10,771,369 14,001,951
Rydex S&P MidCap 400 Pure Value ETF........................... 8,013,012 8,022,482
Rydex S&P MidCap 400 Pure Growth ETF.......................... 8,350,319 7,563,908
Rydex S&P SmallCap 600 Pure Value ETF......................... 11,119,595 10,893,516
Rydex S&P SmallCap 600 Pure Growth ETF........................ 3,541,594 3,584,422
Rydex S&P Equal Weight Consumer Discretionary ETF............. 3,118,486 2,689,228
Rydex S&P Equal Weight Consumer Staples ETF................... 998,204 1,146,732
Rydex S&P Equal Weight Energy ETF............................. 2,440,494 2,940,616
Rydex S&P Equal Weight Financials ETF......................... 1,240,661 1,145,968
Rydex S&P Equal Weight Health Care ETF........................ 3,001,410 3,192,372
Rydex S&P Equal Weight Industrials ETF........................ 1,542,740 1,892,357
Rydex S&P Equal Weight Materials ETF.......................... 1,027,649 1,052,109
Rydex S&P Equal Weight Technology ETF......................... 4,200,839 4,153,415
Rydex S&P Equal Weight Utilities ETF.......................... 738,387 787,681
</Table>
There were no purchases or sales of U.S. government or government agency
obligations for the six months ended April 30, 2008.
The identified cost of investments in securities owned by each Fund for federal
income tax purposes was substantially the same as the cost for financial
reporting purposes. Accordingly, gross unrealized appreciation and depreciation
at April 30, 2008 were as follows:
<Table>
<Caption>
GROSS GROSS NET UNREALIZED
IDENTIFIED UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
----------- ------------ ------------ --------------
Rydex S&P 500 Pure Value ETF.................... $32,953,253 $ 564,379 $6,349,525 $(5,785,146)
Rydex S&P 500 Pure Growth ETF................... 51,364,834 3,607,849 5,592,536 (1,984,687)
Rydex S&P MidCap 400 Pure Value ETF............. 16,864,868 528,643 3,011,349 (2,482,706)
Rydex S&P MidCap 400 Pure Growth ETF............ 17,736,036 1,262,693 2,459,659 (1,196,966)
Rydex S&P SmallCap 600 Pure Value ETF........... 31,132,439 1,149,843 5,460,783 (4,310,940)
Rydex S&P SmallCap 600 Pure Growth ETF.......... 6,386,220 386,809 1,007,554 (620,745)
Rydex S&P Equal Weight Consumer Discretionary
ETF........................................... 9,917,211 72,198 2,330,444 (2,258,246)
Rydex S&P Equal Weight Consumer Staples ETF..... 12,004,020 868,207 312,468 555,739
Rydex S&P Equal Weight Energy ETF............... 11,967,661 2,867,059 517,632 2,349,427
Rydex S&P Equal Weight Financials ETF........... 7,174,874 188,664 1,799,027 (1,610,363)
Rydex S&P Equal Weight Health Care ETF.......... 60,165,278 1,117,694 3,007,790 (1,890,096)
Rydex S&P Equal Weight Industrials ETF.......... 12,627,795 1,614,926 300,937 1,313,989
Rydex S&P Equal Weight Materials ETF............ 3,065,891 224,067 538,641 (314,574)
Rydex S&P Equal Weight Technology ETF........... 23,672,057 381,446 2,861,545 (2,480,099)
Rydex S&P Equal Weight Utilities ETF............ 5,782,136 383,430 608,434 (225,004)
</Table>
6. ACQUISITION OF RYDEX INVESTMENTS AND THE DISTRIBUTOR
At the close of business on January 17, 2008, Rydex NV, Inc., comprised of Rydex
Investments, together with several other Rydex entities, was acquired by
Security Benefit Corporation ("Security Benefit"), a financial services firm
that provides a broad variety of financial programs to investors in the advisor,
banking, education, government, institutional, and qualified plan markets (the
"Transaction"). As a result of the Transaction's completion, Rydex Investments
and the Distributor are wholly-owned subsidiaries of Security Benefit. While the
Transaction has no material impact on the Funds or their shareholders, it
resulted in a change of control of Rydex Investments, which in turn caused the
termination of the investment advisory agreement between Rydex Investments and
the Funds.
A new investment advisory agreement between Rydex Investments and the Funds was
approved under substantially the same terms as the previous investment advisory
agreement (the "New Agreement"). This New Agreement was approved by
shareholders, via proxy, and took effect upon the closing of the Transaction.
The Transaction had no impact on the day-to-day operations of Rydex Investments,
the fees payable to Rydex Investments under the New Agreement, or the persons
responsible for the management of the Funds.
SEMI-ANNUAL REPORT 75
SUPPLEMENTAL INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's website at
http://www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if
applicable, during the most recent 12-month period ended June 30 is also
available, without charge and upon request, by (i) calling 1-800-820-0888; or
accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Trust's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
SEMI-ANNUAL REPORT 76
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling 1-800-820-
0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
<Table>
<Caption>
NAME, POSITION LENGTH OF SERVICE
AND AS TRUSTEE NUMBER OF FUNDS
YEAR OF BIRTH (YEAR BEGAN) OVERSEEN
- ---------------- ----------------------------------------- ----------------
CARL G. Rydex Series Funds - 2004 149
VERBONCOEUR* Rydex Variable Trust - 2004
Trustee, Rydex Dynamic Funds - 2004
President (1952) Rydex ETF Trust - 2004
</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 Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II,
Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President
of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund
Services, Inc. and Rydex Distributors, Inc. (1997 to 2000)
<Table>
---------------------
MICHAEL P. Rydex Series Funds - 2005 149
BYRUM* Rydex Variable Trust - 2005
Trustee, Vice Rydex Dynamic Funds - 2005
President and Rydex ETF Trust - 2005
Secretary (1970)
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Investment Officer of Rydex
Investments (2003 to present); Secretary of Rydex Specialized Products, LLC
(2005 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and
Rydex Dynamic Funds (2004 to present); Vice President of Rydex Series Funds
(1997 to present); Vice President of Rydex Variable Trust (1998 to present);
Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex
ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners
SPhinX Fund (2003 to 2006); President of Rydex Global Advisors (2004 to
present); Chief Operating Officer of Rydex Global Advisors and Rydex
Distributors, Inc. (2003 to 2004)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
<Table>
<Caption>
NAME, POSITION LENGTH OF SERVICE
AND AS TRUSTEE NUMBER OF FUNDS
YEAR OF BIRTH (YEAR BEGAN) OVERSEEN
- ---------------- ----------------------------------------- ----------------
JOHN O. DEMARET Rydex Series Funds - 1997 141
Trustee, Rydex Variable Trust - 1998
Chairman of the Rydex Dynamic Funds - 1999
Board (1940) Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
<Table>
---------------------
COREY A. Rydex Series Funds - 1993 141
COLEHOUR Rydex Variable Trust - 1998
Trustee (1945) Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
<Table>
---------------------
J. KENNETH Rydex Series Funds - 1995 141
DALTON Rydex Variable Trust - 1998
Trustee (1941) 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 141
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, Rydex Series Funds - 2005 141
JR. Rydex Variable Trust - 2005
Trustee (1960) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
Investments
<Table>
---------------------
PATRICK T. Rydex Series Funds - 1997 141
MCCARVILLE Rydex Variable Trust - 1998
Trustee (1942) Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
<Table>
---------------------
ROGER SOMERS Rydex Series Funds - 1993 141
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT 77
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES (CONT.)
EXECUTIVE OFFICERS
<Table>
<Caption>
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE
YEAR OF BIRTH YEARS
- ----------------------------------------- -----------------------------------------
NICK BONOS* Chief Financial Officer of Rydex
Vice President and Treasurer (1963) Specialized Products, LLC (2005 to
present); Vice President and Treasurer of
Rydex Series Funds, Rydex Variable Trust,
Rydex Dynamic Funds, and Rydex ETF Trust
(2003 to present); Senior Vice President
of Rydex Fund Services, Inc. (2003 to
present); Vice President and Treasurer of
Rydex Capital Partners SPhinX Fund (2003
to 2006); Vice President of Accounting of
Rydex Fund Services, Inc. (2000 to 2003)
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series
Chief Compliance Officer and Secretary Funds, Rydex Assistant Variable Trust,
(1966) and Rydex Dynamic Funds (2004 to
present); Assistant Secretary of Rydex
Series Funds, Rydex Variable Trust, and
Rydex Dynamic Funds (2000 to present);
Assistant Secretary of Rydex ETF Trust
(2002 to present); Vice President of
Compliance of Rydex Fund Services, Inc.
(2000 to present); Secretary of Rydex
Capital Partners SphinX Fund (2003 to
2006)
JOSEPH ARRUDA* Assistant Treasurer of Rydex Series
Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex
Dynamic Funds, Rydex ETF Trust (2006);
Vice President of Rydex Fund Services,
Inc. (2004 to present); Director of
Accounting of Rydex Fund Services, Inc.
(2003 to 2004); Vice President of Mutual
Funds, State Street Bank & Trust (2000 to
2003)
PAULA BILLOS* Controller of Rydex Series Funds, Rydex
Controller (1974) Variable Trust, Rydex Dynamic Funds,
Rydex ETF Trust (2006); Director of Fund
Administration of Rydex Fund Services,
Inc. (2001 to present)
</Table>
* Trustees and Officers of the Funds are deemed to be "interested persons" of
the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as
this person is affiliated with the Advisor.
[RYDEX INVESTMENTS LOGO] [GRAPHIC]
9601 Blackwell Road o Suite 500 o Rockville, MD 20850
www.rydexinvestments.com o 800.820.0888
ETF-SEMI-ANN-0408X1008
April 30, 2008
RYDEX ETF TRUST
SEMI-ANNUAL REPORT
RYDEX 2x S&P 500 ETF
RYDEX INVERSE 2x S&P 500 ETF
RYDEX 2x S&P MIDCAP 400 ETF
RYDEX INVERSE 2x S&P MIDCAP 400 ETF
RYDEX 2x RUSSELL 2000(R) ETF
RYDEX INVERSE 2x RUSSELL 2000(R) ETF
[GRAPHIC] [RYDEX INVESTMENTS LOGO]
SEMI-ANNUAL REPORT 1
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<Table>
LETTER TO OUR SHAREHOLDERS........................ 2
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS........ 4
FEES & EXPENSES................................... 4
PORTFOLIO SUMMARY................................. 6
SCHEDULE OF INVESTMENTS........................... 9
STATEMENTS OF ASSETS AND LIABILITIES.............. 43
STATEMENTS OF OPERATIONS.......................... 45
STATEMENTS OF CHANGES IN NET ASSETS............... 47
FINANCIAL HIGHLIGHTS.............................. 50
NOTES TO FINANCIAL STATEMENTS..................... 53
SUPPLEMENTAL INFORMATION.......................... 58
</Table>
SEMI-ANNUAL REPORT 2
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER,
Rydex is a proud participant in the ETF space, having $6.1 million in ETF
assets, 31 exchange traded products and plans to introduce many more in the
future. In the last six months, we've launched six new exchange traded products
and in the past year our assets have grown more than 27%.
Because of their cost-effectiveness, transparency, convenience and
accessibility, ETFs can be a beneficial part of most investor portfolios.
However, lack of education about the products can be a barrier for many
investors. For example, a Rydex survey of individual mutual fund investors in
2007 found that more than half (53%) of investors do not know the difference
between a mutual fund and ETF and 38% don't know what an ETF is.(1) Rydex
believes that investors need to be knowledgeable about their investment
selections -- whether they choose ETFs or any other investment option. That's
why we created ETF Essentials(TM) -- a comprehensive guide to ETFs -- to help
boost ETF knowledge for both advisors and their clients. ETF Essentials presents
information in simple, understandable language and is available via podcast
(audio downloads), print and online. It's free and can be requested on the Rydex
web site (www.rydexinvestments.com).
MARKET RECAP
The six-month period ending April 30 was a momentous one in many respects. The
U.S. financial system teetered on the brink of collapse as the ongoing crisis in
the nation's credit markets seemed to threaten the solvency of many major Wall
Street institutions. Indeed, financial market turmoil, the magnitude of which
had not been seen in decades, led to the dramatic collapse of Bear Stearns, a
powerhouse investment bank that traced its origins back to the 1920s and had
successfully weathered the Great Depression.
References to the Great Depression are appropriate since many of the emergency
actions taken by the Fed to keep the financial system afloat during this period
had their origins in that earlier crisis. The acceptance of mortgage-backed debt
as collateral, and lending to non-depository institutions in particular are
policies taken straight from the 1930s.
Most financial crises lead to the demise of at least one major financial
institution -- think of Penn Central, Continental Illinois and Long Term Capital
Management -- and this one was no exception. If there is good news here, it is
that collapses, such as Bear Stearns in March, usually signify the beginning of
the end of a financial panic. True to form, once it was clear that other major
financial institutions did not face solvency issues along the lines of Bear
Stearns, stocks soared in a classic relief rally.
Although there was a perceptible shift in sentiment at the tail end of the
period, it was not enough to reverse what was a difficult period for stocks. The
bellwether S&P 500 fell nearly 10% as investors ran to the safety of U.S.
Treasury securities, pulling long-term interest rates to five-year lows in the
process. The Fed slashed interest rates at the fastest pace in history, dropping
the widely watched Fed Funds target rate to 2.00% from 4.50% in five sweeping
moves. In this crisis environment the Fed, in conjunction with other central
banks, continuously pumped hundreds of billions of dollars of liquidity into the
global financial system. In fact, government at all levels was in full crisis
prevention mode. Congress and the Bush administration forged a $168 billion
fiscal stimulus plan with lightning speed and the nation's home lending
industry, in the form of Fannie Mae and Freddie Mac, was restructured to help
relieve pressure on the beleaguered housing market.
Risk exposures of all types were sold indiscriminately, hitting financials,
technology and consumer discretionary stocks particularly hard. Aggravated by a
weakening job market, falling housing values and rising inflation, consumer
sentiment levels hit multi-year lows. With all the ingredients for a recession
firmly in place -- shrinking payrolls, declining retail sales, curtailed capital
spending plans and falling wealth levels -- economic activity essentially
crawled to a halt. The cheap U.S. dollar fueled a boom in exports, which kept
economic growth just barely in the black.
One outgrowth of the dollar's descent in foreign exchange markets was a
corresponding rise in commodity prices. The speculative boom in commodity prices
reached a frenzy, putting commodity index levels at 10-year highs. Much of that
was driven by oil, the price of which rose in excess of 20% and broke the
$100/bbl. level in early March.
- ----------
(1) Rydex Investments in conjunction with e-Rewards Market Research
conducted this survey of individual investors in July 2007. The survey was
conducted with 500 individual mutual fund investors. All participants had
investable assets of more than $100K, with 150 of the participants having
investable assets of more than $500K. e-Rewards Market Research is not
affiliated with Rydex Investments. Although Rydex Investments believes the
information from this organization is correct, it cannot, and does not,
guarantee or warrant the completeness or suitability of this information.
SEMI-ANNUAL REPORT 3
- --------------------------------------------------------------------------------
An implicit part of the sentiment shift observed at the end of the quarter was
the notion that the Fed is no longer part of the problem but rather part of the
solution. In retrospect it appears that the Fed's policy responses throughout
the crisis have been effective and appropriate.
We appreciate the trust you have placed in our firm's quality and integrity by
investing with us. It is our goal to continue to offer you innovative ETF
choices to meet your investment needs.
Sincerely,
/s/ DAVID C. REILLY, CFA
David Reilly, CFA
Director of Portfolio Strategies
All sources: Bloomberg
SEMI-ANNUAL REPORT 4
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)
- --------------------------------------------------------------------------------
Many of the Rydex Funds described in this report are benchmarked daily to
leveraged or inverse leveraged versions of published indices. To properly
evaluate the performance of these funds, it is essential to understand the
effect of mathematical compounding on their respective returns.
Because of the nonlinear effects of leverage applied over time, it is possible
for a fund to perform in line with its benchmark for several individual periods
in a row, yet seem to trail the benchmark over the entire period. It is also
possible that a fund that performs in-line with its benchmark on a daily basis
may seem to outperform its benchmark over longer periods.
AN EXAMPLE OF COMPOUNDING
For example, consider a hypothetical fund that is designed to produce returns
that correspond to 150% of an index. On the first day of a period, the index
rises from a level of 100 to a level of 106, producing a 6.0% gain and an
expectation that the fund will rise by 9.0%. On the same day, the fund's net
asset value ("NAV") increases from $10.00 to $10.90 for a gain of 9.0% -- in
line with its benchmark.
On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The
fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund
performed exactly in line with its benchmark, but for the two-day period, the
fund was down 1.8%, while the index was down only 1.0%. Without taking into
account the daily compounding of returns, one would expect the fund to lose 1.5%
and would see the fund as trailing by 0.3% when in fact it had performed
perfectly. This example is summarized in the table below.
<Table>
<Caption>
INDEX INDEX FUND FUND FUND
LEVEL PERFORMANCE EXPECTATION NAV PERFORMANCE ASSESSMENT
- ---------------------------------------------------------------------------------------------------------------
Start 100 $10.00
Day 1 106 6.0% 9.0% $10.90 9.0% In line
Day 2 99 (6.6)% (9.9)% $ 9.82 (9.9)% In line
Cumulative (1.0)% (1.5)% (1.8)% (0.3)%
- ---------------------------------------------------------------------------------------------------------------
</Table>
As illustrated by this simple example, the effect of leverage can make it
difficult to form expectations or judgments about fund performance given only
the returns of the unleveraged index.
In general, any change in direction in an index will produce compounding that
seems to work against an investor. Were the index to move in the same direction
(either up or down) for two or more periods in a row, the compounding of those
returns would work in an investor's favor, causing the fund to seemingly beat
its benchmark.
As a general rule of thumb, more leverage in a fund will magnify the compounding
effect, while less leverage will generally produce results that are more in line
with expectations. In addition, periods of high volatility in an underlying
index will also cause the effects of compounding to be more pronounced, while
lower volatility will produce a more muted effect.
SEMI-ANNUAL REPORT 5
- --------------------------------------------------------------------------------
SHAREHOLDER EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of the Rydex ETF Trust, you incur transaction costs such as
creation and redemption fees or brokerage charges, and ongoing costs including
advisory fees, trustee fees and, if applicable, distribution fees. All other
Trust expenses are paid by the advisor. This Example is intended to help you
understand your ongoing costs (in dollars) of investing in a Fund and to compare
these costs with the ongoing costs of investing in other mutual funds.
The example in the table is based on an investment of $1,000 invested on
November 5, 2007 and held for the period ended April 30, 2008.
ACTUAL EXPENSES
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you incurred over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
table under the heading entitled "Expenses Paid During the Period" to estimate
the expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second table below provides information about hypothetical account values
and hypothetical expenses based on a Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not a Fund's actual
return. Thus, you should not use the hypothetical account values and expenses to
estimate the actual ending account balance or your expenses for the period.
Rather, these figures are provided to enable you to compare the ongoing costs of
investing in a Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as creation
and redemption fees, or brokerage charges. Therefore, the second table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID
ACCOUNT ACCOUNT DURING
VALUE VALUE PERIOD*
11/5/2007 4/30/2008 11/1/07 TO 4/30/08
--------- --------- ------------------
ACTUAL
Rydex Inverse 2x S&P 500 ETF**........................ $1,000 $ 831.50 $3.12
Rydex 2x S&P 500 ETF**................................ $1,000 $1,129.20 $3.62
Rydex 2x MidCap 400 ETF**............................. $1,000 $ 879.40 $3.20
Rydex Inverse 2x S&P MidCap 400 ETF**................. $1,000 $1,052.00 $3.49
Rydex 2x Russell 2000(R) ETF**........................ $1,000 $ 787.10 $3.04
Rydex Inverse 2x Russell 2000(R) ETF**................ $1,000 $1,121.70 $3.61
HYPOTHETICAL (ASSUMING A 5% RETURN BEFORE EXPENSES)
Rydex Inverse 2x S&P 500 ETF**........................ $1,000 $1,021.38 $3.52
Rydex 2x S&P 500 ETF**................................ $1,000 $1,021.38 $3.52
Rydex 2x MidCap 400 ETF**............................. $1,000 $1,021.38 $3.52
Rydex Inverse 2x S&P MidCap 400 ETF**................. $1,000 $1,021.38 $3.52
Rydex 2x Russell 2000(R) ETF**........................ $1,000 $1,021.38 $3.52
Rydex Inverse 2x Russell 2000(R) ETF**................ $1,000 $1,021.38 $3.52
</Table>
- --------
* Actual expenses are equal to the Fund's annualized expense ratio of 0.70%,
0.70%, 0.70%, 0.70%, 0.70%, and 0.70%. respectively, multiplied by the
average account value of the period, multiplied by days in the period
since commencement, divided by 366. Hypothetical expenses are equal to the
Fund's annualized expense ratio of 0.70%, 0.70%, 0.70%, 0.70%, 0.70%, and
0.70%, respectively, multiplied by the average account value of the
period, multiplied by days in the most recent six month period, divided by
366.
** Fund commenced operations on 11/5/07
SEMI-ANNUAL REPORT 6
RYDEX 2x S&P 500 ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
EXXON MOBIL CORP. 3.60%
GENERAL ELECTRIC CO. 2.36%
AT&T, INC. 1.69%
MICROSOFT CORP. 1.65%
PROCTER & GAMBLE CO. 1.49%
CHEVRON CORP. 1.44%
JOHNSON & JOHNSON 1.38%
INTERNATIONAL BUSINESS MACHINES CORP. 1.21%
BANK OF AMERICA CORP. 1.21%
JPMORGAN CHASE & CO. 1.17%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 17.12
Information Technology 15.97
Energy 14.05
Industrials 11.79
Health Care 11.35
Consumer Staples 10.52
Consumer Discretionary 8.59
Utilities 3.62
Materials 3.58
Telecommunication Services 3.41
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Sector Allocations are expressed as a percentage of the Fund's equity
investments market value. These percentages may change over time.
SEMI-ANNUAL REPORT 7
RYDEX 2x S&P MIDCAP 400 ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
SOUTHWESTERN ENERGY CO. 1.13%
INTUITIVE SURGICAL, INC. 0.88%
FMC TECHNOLOGIES, INC. 0.70%
AMPHENOL CORP. 0.65%
EQUITABLE RESOURCES, INC. 0.65%
ARCH COAL, INC. 0.65%
MILLENNIUM PHARMACEUTICALS, INC. 0.64%
JOY GLOBAL, INC. 0.63%
NEWFIELD EXPLORATION CO. 0.63%
ACTIVISION, INC. 0.63%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Industrials 16.40
Financials 16.00
Information Technology 13.54
Consumer Discretionary 12.51
Health Care 11.99
Energy 10.33
Utilities 7.97
Materials 7.60
Consumer Staples 3.19
Telecommunication Services 0.47
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Sector Allocations are expressed as a percentage of the Fund's equity
investments market value. These percentages may change over time.
SEMI-ANNUAL REPORT 8
RYDEX 2x RUSSELL 2000(R) ETF
PORTFOLIO SUMMARY As of April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOP 10 HOLDINGS*
- ------------------------------------------------------------------------------------
DESCRIPTION % OF NET ASSETS
- ------------------------------------------------------------------------------------
CF INDUSTRIES HOLDINGS, INC. 0.55%
HOLOGIC, INC. 0.52%
PRICELINE.COM, INC. 0.36%
BUCYRUS INTERNATIONAL, INC. -- CLASS A 0.34%
PETROHAWK ENERGY CORP. 0.33%
FLIR SYSTEMS, INC. 0.33%
ILLUMINA, INC. 0.30%
EXTERRAN HOLDINGS, INC. 0.30%
WALTER INDUSTRIES, INC. 0.27%
TERRA INDUSTRIES, INC. 0.26%
- ------------------------------------------------------------------------------------
</Table>
SECTOR ALLOCATIONS*
(PIE CHART)
<Table>
Financials 19.61
Information Technology 17.39
Industrials 15.25
Consumer Discretionary 13.44
Health Care 12.87
Energy 8.29
Materials 5.65
Consumer Staples 3.14
Utilities 3.11
Telecommunication Services 1.25
</Table>
* The Fund's Top Ten Holdings are expressed as a percentage of net assets and
the Sector Allocations are expressed as a percentage of the Fund's equity
investments market value. These percentages may change over time.
SEMI-ANNUAL REPORT 9
RYDEX 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------
COMMON STOCKS 87.2%
AEROSPACE & DEFENSE 2.6%
Boeing Co. ................................ 1,890 $160,385
General Dynamics Corp. .................... 990 89,516
Goodrich Corp. ............................ 310 21,127
Honeywell International, Inc. ............. 1,840 109,296
L-3 Communications Holdings, Inc. ......... 300 33,435
Lockheed Martin Corp. ..................... 850 90,134
Northrop Grumman Corp. .................... 830 61,063
Precision Castparts Corp. ................. 340 39,970
Raytheon Co. .............................. 1,050 67,169
Rockwell Collins, Inc. .................... 400 25,244
United Technologies Corp. ................. 2,420 175,377
----------
TOTAL AEROSPACE & DEFENSE 872,716
----------
AIR FREIGHT & LOGISTICS 0.9%
C.H. Robinson Worldwide, Inc. ............. 420 26,326
Expeditors International of Washington,
Inc. ................................... 530 24,693
FedEx Corp. ............................... 760 72,861
United Parcel Service, Inc. -- Class B..... 2,550 184,645
----------
TOTAL AIR FREIGHT & LOGISTICS 308,525
----------
AIRLINES 0.1%
Southwest Airlines Co. .................... 1,810 23,964
----------
TOTAL AIRLINES 23,964
----------
AUTO COMPONENTS 0.2%
Goodyear Tire & Rubber Co.*................ 590 15,800
Johnson Controls, Inc. .................... 1,460 51,480
----------
TOTAL AUTO COMPONENTS 67,280
----------
AUTOMOBILES 0.3%
Ford Motor Co.*............................ 5,440 44,934
General Motors Corp. ...................... 1,400 32,480
Harley-Davidson, Inc. ..................... 590 22,568
----------
TOTAL AUTOMOBILES 99,982
----------
BEVERAGES 2.1%
Anheuser-Busch Cos., Inc. ................. 1,760 86,592
Brown-Forman Corp. -- Class B.............. 210 14,284
Coca-Cola Co. ............................. 4,930 290,229
Coca-Cola Enterprises, Inc. ............... 710 15,975
Constellation Brands, Inc. -- Class A*..... 480 8,813
Molson Coors Brewing Co. -- Class B........ 340 18,646
Pepsi Bottling Group, Inc. ................ 340 11,461
PepsiCo, Inc. ............................. 3,950 270,694
----------
TOTAL BEVERAGES 716,694
----------
BIOTECHNOLOGY 1.1%
Amgen, Inc.*............................... 2,680 112,212
Biogen Idec, Inc.*......................... 730 44,304
Celgene Corp.*............................. 1,070 66,490
Genzyme Corp.*............................. 660 46,431
Gilead Sciences, Inc.*..................... 2,290 118,530
----------
TOTAL BIOTECHNOLOGY 387,967
----------
BUILDING PRODUCTS 0.1%
Masco Corp. ............................... 900 16,389
Trane, Inc. ............................... 430 19,999
----------
TOTAL BUILDING PRODUCTS 36,388
----------
CAPITAL MARKETS 2.7%
American Capital Strategies, Ltd. ......... 480 15,240
Ameriprise Financial, Inc. ................ 560 26,594
Bank of New York Mellon Corp. ............. 2,820 122,755
Bear Stearns Cos., Inc. ................... 477 5,118
Charles Schwab Corp. ...................... 2,320 50,112
E*TRADE Financial Corp.*................... 1,140 4,537
Federated Investors, Inc. -- Class B....... 210 7,031
Franklin Resources, Inc. .................. 390 37,109
Goldman Sachs Group, Inc. ................. 970 185,629
Janus Capital Group, Inc. ................. 360 10,102
Legg Mason, Inc. .......................... 330 19,892
Lehman Brothers Holdings, Inc. ............ 1,310 57,954
Merrill Lynch & Co., Inc. ................. 2,400 119,592
Morgan Stanley............................. 2,730 132,678
Northern Trust Corp. ...................... 470 34,832
State Street Corp. ........................ 960 69,254
T. Rowe Price Group, Inc. ................. 650 38,064
----------
TOTAL CAPITAL MARKETS 936,493
----------
CHEMICALS 1.7%
Air Products & Chemicals, Inc. ............ 530 52,168
Ashland, Inc. ............................. 140 7,423
Dow Chemical Co. .......................... 2,320 93,148
Du Pont (E.I.) de Nemours & Co. ........... 2,220 108,580
Eastman Chemical Co. ...................... 200 14,700
Ecolab, Inc. .............................. 430 19,763
Hercules, Inc. ............................ 280 5,264
International Flavors & Fragrances, Inc. .. 200 9,122
Monsanto Co. .............................. 1,350 153,927
PPG Industries, Inc. ...................... 400 24,548
Praxair, Inc. ............................. 770 70,309
Rohm & Haas Co. ........................... 310 16,569
Sigma-Aldrich Corp. ....................... 320 18,246
----------
TOTAL CHEMICALS 593,767
----------
COMMERCIAL BANKS 2.5%
BB&T Corp. ................................ 1,350 46,292
Comerica, Inc. ............................ 370 12,850
Fifth Third Bancorp........................ 1,310 28,073
First Horizon National Corp. .............. 460 4,968
Huntington Bancshares, Inc. ............... 900 8,451
KeyCorp.................................... 980 23,647
M&T Bank Corp. ............................ 190 17,714
Marshall & Ilsley Corp. ................... 650 16,237
National City Corp. ....................... 1,870 11,781
PNC Financial Services Group, Inc. ........ 840 58,254
Regions Financial Corp. ................... 1,710 37,483
SunTrust Banks, Inc. ...................... 870 48,503
U.S. Bancorp............................... 4,270 144,710
Wachovia Corp. ............................ 5,250 153,038
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 10
RYDEX 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Wells Fargo & Co. ......................... 8,130 $241,867
Zions Bancorp.............................. 260 12,051
----------
TOTAL COMMERCIAL BANKS 865,919
----------
COMMERCIAL SERVICES & SUPPLIES 0.4%
Allied Waste Industries, Inc.*............. 830 10,259
Avery Dennison Corp. ...................... 260 12,530
Cintas Corp. .............................. 320 9,475
Equifax, Inc. ............................. 320 12,247
Monster Worldwide, Inc.*................... 310 7,542
Pitney Bowes, Inc. ........................ 520 18,777
R.R. Donnelley & Sons Co. ................. 530 16,239
Robert Half International, Inc. ........... 390 9,243
Waste Management, Inc. .................... 1,220 44,042
----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 140,354
----------
COMMUNICATIONS EQUIPMENT 2.2%
Ciena Corp.*............................... 210 7,100
Cisco Systems, Inc.*....................... 14,710 377,164
Corning, Inc. ............................. 3,880 103,635
JDS Uniphase Corp.*........................ 550 7,871
Juniper Networks, Inc.*.................... 1,290 35,630
Motorola, Inc. ............................ 5,560 55,378
QUALCOMM, Inc. ............................ 3,980 171,896
Tellabs, Inc.*............................. 1,020 5,263
----------
TOTAL COMMUNICATIONS EQUIPMENT 763,937
----------
COMPUTERS & PERIPHERALS 3.9%
Apple, Inc.*............................... 2,170 377,471
Dell, Inc.*................................ 5,040 93,895
EMC Corp.*................................. 5,180 79,772
Hewlett-Packard Co. ....................... 6,080 281,808
International Business Machines Corp. ..... 3,420 412,794
Lexmark International, Inc. -- Class A*.... 230 7,220
NetApp, Inc.*.............................. 850 20,570
QLogic Corp.*.............................. 330 5,267
SanDisk Corp.*............................. 570 15,441
Sun Microsystems, Inc.*.................... 1,960 30,694
Teradata Corp.*............................ 440 9,368
----------
TOTAL COMPUTERS & PERIPHERALS 1,334,300
----------
CONSTRUCTION & ENGINEERING 0.2%
Fluor Corp. ............................... 220 33,631
Jacobs Engineering Group, Inc.*............ 300 25,899
----------
TOTAL CONSTRUCTION & ENGINEERING 59,530
----------
CONSTRUCTION MATERIALS 0.1%
Vulcan Materials Co. ...................... 270 18,581
----------
TOTAL CONSTRUCTION MATERIALS 18,581
----------
CONSUMER FINANCE 0.7%
American Express Co. ...................... 2,850 136,857
Capital One Financial Corp. ............... 920 48,760
Discover Financial Services................ 1,180 21,488
SLM Corp.*................................. 1,150 21,309
----------
TOTAL CONSUMER FINANCE 228,414
----------
CONTAINERS & PACKAGING 0.1%
Ball Corp. ................................ 240 12,907
Bemis Co., Inc. ........................... 250 6,575
Pactiv Corp.*.............................. 320 7,613
Sealed Air Corp. .......................... 400 10,116
----------
TOTAL CONTAINERS & PACKAGING 37,211
----------
DISTRIBUTORS 0.1%
Genuine Parts Co. ......................... 410 17,409
----------
TOTAL DISTRIBUTORS 17,409
----------
DIVERSIFIED CONSUMER SERVICES 0.1%
Apollo Group, Inc. -- Class A*............. 340 17,306
H&R Block, Inc. ........................... 800 17,496
----------
TOTAL DIVERSIFIED CONSUMER SERVICES 34,802
----------
DIVERSIFIED FINANCIAL SERVICES 3.9%
Bank of America Corp. ..................... 10,960 411,438
CIT Group, Inc. ........................... 700 7,623
Citigroup, Inc. ........................... 12,840 324,467
CME Group, Inc. ........................... 130 59,468
IntercontinentalExchange, Inc.*............ 170 26,376
JPMorgan Chase & Co. ...................... 8,380 399,307
Leucadia National Corp. ................... 420 21,512
Moody's Corp. ............................. 510 18,850
NYSE Euronext.............................. 650 42,965
----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 1,312,006
----------
DIVERSIFIED TELECOMMUNICATION SERVICES 2.7%
AT&T, Inc. ................................ 14,890 576,392
CenturyTel, Inc. .......................... 260 8,437
Citizens Communications Co. ............... 810 8,683
Embarq Corp. .............................. 380 15,797
Qwest Communications International, Inc. .. 3,790 19,556
Verizon Communications, Inc. .............. 7,080 272,438
Windstream Corp. .......................... 1,120 13,149
----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 914,452
----------
ELECTRIC UTILITIES 1.9%
Allegheny Energy, Inc. .................... 410 22,058
American Electric Power Co., Inc. ......... 990 44,184
Duke Energy Corp. ......................... 3,120 57,127
Edison International....................... 800 41,736
Entergy Corp. ............................. 470 53,984
Exelon Corp. .............................. 1,630 139,332
FirstEnergy Corp. ......................... 750 56,730
FPL Group, Inc. ........................... 1,010 66,953
Pepco Holdings, Inc. ...................... 500 12,455
Pinnacle West Capital Corp. ............... 250 8,485
PPL Corp. ................................. 920 44,178
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 11
RYDEX 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Progress Energy, Inc. ..................... 640 $26,874
Southern Co. .............................. 1,890 70,365
----------
TOTAL ELECTRIC UTILITIES 644,461
----------
ELECTRICAL EQUIPMENT 0.4%
Cooper Industries, Ltd. -- Class A......... 430 18,228
Emerson Electric Co. ...................... 1,940 101,384
Rockwell Automation, Inc. ................. 370 20,065
----------
TOTAL ELECTRICAL EQUIPMENT 139,677
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 0.3%
Agilent Technologies, Inc.*................ 900 27,189
Jabil Circuit, Inc. ....................... 510 5,549
Molex, Inc. ............................... 350 9,933
Tyco Electronics, Ltd. .................... 1,200 44,892
----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 87,563
----------
ENERGY EQUIPMENT & SERVICES 2.6%
Baker Hughes, Inc. ........................ 760 61,469
BJ Services Co. ........................... 720 20,354
Cameron International Corp.*............... 540 26,584
ENSCO International, Inc. ................. 360 22,943
Halliburton Co. ........................... 2,170 99,625
Nabors Industries, Ltd.*................... 690 25,903
National-Oilwell Varco, Inc.*.............. 1,020 69,819
Noble Corp. ............................... 660 37,145
Rowan Cos., Inc. .......................... 270 10,527
Schlumberger, Ltd. ........................ 2,950 296,622
Smith International, Inc. ................. 500 38,255
Transocean, Inc.*.......................... 780 115,019
Weatherford International, Ltd.*........... 840 67,763
----------
TOTAL ENERGY EQUIPMENT & SERVICES 892,028
----------
FOOD & STAPLES RETAILING 2.3%
Costco Wholesale Corp. .................... 1,070 76,238
CVS Caremark Corp. ........................ 3,530 142,506
Kroger Co. ................................ 1,660 45,235
Safeway, Inc. ............................. 1,090 34,444
SUPERVALU, Inc. ........................... 520 17,212
Sysco Corp. ............................... 1,490 45,549
Wal-Mart Stores, Inc. ..................... 5,830 338,023
Walgreen Co. .............................. 2,450 85,382
Whole Foods Market, Inc. .................. 340 11,098
----------
TOTAL FOOD & STAPLES RETAILING 795,687
----------
FOOD PRODUCTS 1.4%
Archer-Daniels-Midland Co. ................ 1,590 70,055
Campbell Soup Co. ......................... 540 18,792
ConAgra Foods, Inc. ....................... 1,200 28,272
Dean Foods Co.*............................ 370 8,599
General Mills, Inc. ....................... 830 50,132
H.J. Heinz Co. ............................ 780 36,683
Hershey Co. ............................... 410 15,326
Kellogg Co. ............................... 640 32,749
Kraft Foods, Inc. -- Class A............... 3,780 119,561
McCormick & Co., Inc. ..................... 320 12,093
Sara Lee Corp. ............................ 1,760 25,538
Tyson Foods, Inc. -- Class A............... 680 12,104
Wm. Wrigley Jr. Co. ....................... 530 40,365
----------
TOTAL FOOD PRODUCTS 470,269
----------
GAS UTILITIES 0.1%
Nicor, Inc. ............................... 110 3,863
Questar Corp. ............................. 430 26,673
----------
TOTAL GAS UTILITIES 30,536
----------
HEALTH CARE EQUIPMENT & SUPPLIES 1.6%
Baxter International, Inc. ................ 1,570 97,842
Becton, Dickinson & Co. ................... 600 53,640
Boston Scientific Corp.*................... 3,310 44,122
C.R. Bard, Inc. ........................... 250 23,542
Covidien, Ltd. ............................ 1,230 57,429
Hospira, Inc.*............................. 390 16,048
Medtronic, Inc. ........................... 2,770 134,844
St Jude Medical, Inc.*..................... 850 37,213
Stryker Corp. ............................. 590 38,250
Varian Medical Systems, Inc.*.............. 310 14,533
Zimmer Holdings, Inc.*..................... 580 43,013
----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 560,476
----------
HEALTH CARE PROVIDERS & SERVICES 1.6%
Aetna, Inc. ............................... 1,230 53,628
AmerisourceBergen Corp. ................... 400 16,220
Cardinal Health, Inc. ..................... 880 45,822
CIGNA Corp. ............................... 690 29,470
Coventry Health Care, Inc.*................ 380 16,997
Express Scripts, Inc.*..................... 620 43,412
Humana, Inc.*.............................. 420 20,072
Laboratory Corp. of America Holdings*...... 270 20,417
McKesson Corp. ............................ 710 37,005
Medco Health Solutions, Inc.*.............. 1,290 63,907
Patterson Cos., Inc.*...................... 320 10,944
Quest Diagnostics, Inc. ................... 390 19,570
Tenet Healthcare Corp.*.................... 1,170 7,488
UnitedHealth Group, Inc. .................. 3,090 100,827
WellPoint, Inc.*........................... 1,340 66,665
----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 552,444
----------
HEALTH CARE TECHNOLOGY 0.0%(A)
IMS Health, Inc. .......................... 450 11,138
----------
TOTAL HEALTH CARE TECHNOLOGY 11,138
----------
HOTELS, RESTAURANTS & LEISURE 1.2%
Carnival Corp. ............................ 1,080 43,384
Darden Restaurants, Inc. .................. 350 12,453
International Game Technology.............. 770 26,750
Marriott International, Inc. -- Class A.... 740 25,382
McDonald's Corp. .......................... 2,840 169,207
Starbucks Corp.*........................... 1,800 29,214
Starwood Hotels & Resorts Worldwide,
Inc. ................................... 460 24,017
Wendy's International, Inc. ............... 220 6,380
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 12
RYDEX 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Wyndham Worldwide Corp. ................... 440 $9,451
Yum! Brands, Inc. ......................... 1,170 47,595
----------
TOTAL HOTELS, RESTAURANTS & LEISURE 393,833
----------
HOUSEHOLD DURABLES 0.4%
Black & Decker Corp. ...................... 150 9,844
Centex Corp. .............................. 300 6,246
D.R. Horton, Inc. ......................... 680 10,533
Fortune Brands, Inc. ...................... 380 25,696
Harman International Industries, Inc. ..... 150 6,131
KB HOME.................................... 190 4,275
Leggett & Platt, Inc. ..................... 410 6,806
Lennar Corp. -- Class A.................... 340 6,263
Newell Rubbermaid, Inc. ................... 680 13,960
Pulte Homes, Inc. ......................... 530 6,911
Snap-on, Inc. ............................. 140 8,303
Stanley Works.............................. 190 9,166
Whirlpool Corp. ........................... 190 13,828
----------
TOTAL HOUSEHOLD DURABLES 127,962
----------
HOUSEHOLD PRODUCTS 2.0%
Clorox Co. ................................ 340 18,020
Colgate-Palmolive Co. ..................... 1,260 89,082
Kimberly-Clark Corp. ...................... 1,040 66,550
Procter & Gamble Co. ...................... 7,590 508,909
----------
TOTAL HOUSEHOLD PRODUCTS 682,561
----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2%
AES Corp.*................................. 1,650 28,644
Constellation Energy Group, Inc. .......... 440 37,246
Dynegy, Inc. -- Class A*................... 1,220 10,516
----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 76,406
----------
INDUSTRIAL CONGLOMERATES 3.0%
3M Co. .................................... 1,750 134,575
General Electric Co. ...................... 24,640 805,728
Textron, Inc. ............................. 610 37,216
Tyco International, Ltd. .................. 1,200 56,148
----------
TOTAL INDUSTRIAL CONGLOMERATES 1,033,667
----------
INSURANCE 3.5%
ACE, Ltd. ................................. 810 48,835
AFLAC, Inc. ............................... 1,170 78,004
Allstate Corp. ............................ 1,380 69,497
Ambac Financial Group, Inc. ............... 710 3,287
American International Group, Inc. ........ 6,220 287,364
Aon Corp. ................................. 750 34,042
Assurant, Inc. ............................ 240 15,600
Chubb Corp. ............................... 910 48,203
Cincinnati Financial Corp. ................ 410 14,719
Genworth Financial, Inc. -- Class A........ 1,070 24,674
Hartford Financial Services Group, Inc. ... 770 54,878
Lincoln National Corp. .................... 650 34,944
Loews Corp. ............................... 1,080 45,479
Marsh & McLennan Cos., Inc. ............... 1,290 35,591
MBIA, Inc. ................................ 520 5,408
MetLife, Inc. ............................. 1,750 106,487
Principal Financial Group, Inc. ........... 640 34,342
Progressive Corp. ......................... 1,670 30,377
Prudential Financial, Inc. ................ 1,100 83,281
SAFECO Corp. .............................. 220 14,683
Torchmark Corp. ........................... 220 14,243
Travelers Cos., Inc. ...................... 1,530 77,112
Unum Group................................. 860 19,961
XL Capital, Ltd. -- Class A................ 440 15,352
----------
TOTAL INSURANCE 1,196,363
----------
INTERNET & CATALOG RETAIL 0.2%
Amazon.com, Inc.*.......................... 760 59,759
Expedia, Inc.*............................. 510 12,883
IAC/InterActiveCorp*....................... 450 9,364
----------
TOTAL INTERNET & CATALOG RETAIL 82,006
----------
INTERNET SOFTWARE & SERVICES 1.6%
Akamai Technologies, Inc.*................. 410 14,666
eBay, Inc.*................................ 2,750 86,047
Google, Inc. -- Class A*................... 570 327,345
VeriSign, Inc.*............................ 530 19,107
Yahoo!, Inc.*.............................. 3,300 90,453
----------
TOTAL INTERNET SOFTWARE & SERVICES 537,618
----------
IT SERVICES 0.8%
Affiliated Computer Services, Inc. -- Class
A*...................................... 240 12,713
Automatic Data Processing, Inc. ........... 1,290 57,018
Cognizant Technology Solutions
Corp. -- Class A*....................... 710 22,897
Computer Sciences Corp.*................... 400 17,436
Convergys Corp.*........................... 310 4,873
Electronic Data Systems Corp. ............. 1,260 23,386
Fidelity National Information Services,
Inc. ................................... 420 15,145
Fiserv, Inc.*.............................. 410 20,726
Paychex, Inc. ............................. 800 29,096
Total System Services, Inc. ............... 490 11,662
Unisys Corp.*.............................. 870 3,619
Western Union Co. ......................... 1,850 42,550
----------
TOTAL IT SERVICES 261,121
----------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Brunswick Corp. ........................... 220 3,670
Eastman Kodak Co. ......................... 710 12,702
Hasbro, Inc. .............................. 350 12,446
Mattel, Inc. .............................. 890 16,687
----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 45,505
----------
LIFE SCIENCES TOOLS & SERVICES 0.3%
Applera Corp. -- Applied Biosystems Group.. 410 13,083
Millipore Corp.*........................... 140 9,814
PerkinElmer, Inc. ......................... 290 7,703
Thermo Electron Corp.*..................... 1,030 59,606
Waters Corp.*.............................. 250 15,365
----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 105,571
----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 13
RYDEX 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
MACHINERY 1.7%
Caterpillar, Inc. ......................... 1,540 $126,095
Cummins, Inc. ............................. 500 31,325
Danaher Corp. ............................. 630 49,153
Deere & Co. ............................... 1,080 90,795
Dover Corp. ............................... 470 23,251
Eaton Corp. ............................... 400 35,136
Illinois Tool Works, Inc. ................. 990 51,767
Ingersoll-Rand Co., Ltd. -- Class A........ 670 29,735
ITT Corp. ................................. 450 28,800
Manitowoc Co., Inc. ....................... 320 12,102
PACCAR, Inc. .............................. 900 42,588
Pall Corp. ................................ 300 10,431
Parker-Hannifin Corp. ..................... 420 33,537
Terex Corp.*............................... 250 17,420
----------
TOTAL MACHINERY 582,135
----------
MEDIA 2.5%
CBS Corp. -- Class B....................... 1,680 38,758
Clear Channel Communications, Inc. ........ 1,230 37,085
Comcast Corp. -- Class A................... 7,430 152,686
DIRECTV Group, Inc.*....................... 1,760 43,366
E.W. Scripps Co. -- Class A................ 220 9,880
Gannett Co., Inc. ......................... 570 16,313
Interpublic Group of Cos., Inc.*........... 1,160 10,498
McGraw-Hill Cos., Inc. .................... 800 32,792
Meredith Corp. ............................ 90 2,917
New York Times Co. -- Class A.............. 350 6,825
News Corp. -- Class A...................... 5,680 101,672
Omnicom Group, Inc. ....................... 790 37,715
Time Warner, Inc. ......................... 8,820 130,977
Viacom, Inc. -- Class B*................... 1,580 60,735
Walt Disney Co. ........................... 4,650 150,799
Washington Post Co. -- Class B............. 11 7,212
----------
TOTAL MEDIA 840,230
----------
METALS & MINING 1.0%
Alcoa, Inc. ............................... 2,010 69,908
Allegheny Technologies, Inc. .............. 250 17,208
Freeport-McMoRan Copper & Gold, Inc. ...... 940 106,925
Newmont Mining Corp. ...................... 1,120 49,515
Nucor Corp. ............................... 710 53,605
Titanium Metals Corp. ..................... 240 3,658
United States Steel Corp. ................. 290 44,645
----------
TOTAL METALS & MINING 345,464
----------
MULTI-UTILITIES 0.9%
Ameren Corp. .............................. 510 23,134
CenterPoint Energy, Inc. .................. 810 12,328
CMS Energy Corp. .......................... 560 8,165
Consolidated Edison, Inc. ................. 670 27,872
Dominion Resources, Inc. .................. 1,420 61,614
DTE Energy Co. ............................ 400 16,124
Integrys Energy Group, Inc................. 190 9,099
NiSource, Inc. ............................ 680 12,172
PG&E Corp. ................................ 880 35,200
Public Service Enterprise Group, Inc. ..... 1,250 54,887
Sempra Energy.............................. 640 36,269
TECO Energy, Inc. ......................... 520 8,325
Xcel Energy, Inc. ......................... 1,060 22,048
----------
TOTAL MULTI-UTILITIES 327,237
----------
MULTILINE RETAIL 0.7%
Big Lots, Inc.*............................ 200 5,406
Dillard's, Inc. -- Class A................. 140 2,856
Family Dollar Stores, Inc. ................ 350 7,490
J.C. Penney Co., Inc. ..................... 550 23,375
Kohl's Corp.*.............................. 770 37,615
Macy's, Inc. .............................. 1,070 27,060
Nordstrom, Inc. ........................... 440 15,514
Sears Holdings Corp.*...................... 180 17,750
Target Corp. .............................. 2,020 107,323
----------
TOTAL MULTILINE RETAIL 244,389
----------
OFFICE ELECTRONICS 0.1%
Xerox Corp. ............................... 2,260 31,572
----------
TOTAL OFFICE ELECTRONICS 31,572
----------
OIL, GAS & CONSUMABLE FUELS 9.6%
Anadarko Petroleum Corp. .................. 1,150 76,544
Apache Corp. .............................. 820 110,437
Chesapeake Energy Corp. ................... 1,130 58,421
Chevron Corp. ............................. 5,120 492,288
ConocoPhillips............................. 3,850 331,677
CONSOL Energy, Inc. ....................... 450 36,432
Devon Energy Corp. ........................ 1,100 124,740
El Paso Corp. ............................. 1,730 29,652
EOG Resources, Inc. ....................... 610 79,593
Exxon Mobil Corp. ......................... 13,200 1,228,524
Hess Corp. ................................ 690 73,278
Marathon Oil Corp. ........................ 1,750 79,747
Murphy Oil Corp. .......................... 470 42,460
Noble Energy, Inc. ........................ 420 36,540
Occidental Petroleum Corp. ................ 2,030 168,916
Peabody Energy Corp. ...................... 670 40,957
Range Resources Corp. ..................... 370 24,561
Spectra Energy Corp. ...................... 1,560 38,532
Sunoco, Inc. .............................. 290 13,459
Tesoro Corp. .............................. 340 8,548
Valero Energy Corp. ....................... 1,320 64,482
Williams Cos., Inc. ....................... 1,440 51,120
XTO Energy, Inc. .......................... 1,260 77,944
----------
TOTAL OIL, GAS & CONSUMABLE FUELS 3,288,852
----------
PAPER & FOREST PRODUCTS 0.2%
International Paper Co. ................... 1,060 27,740
MeadWestvaco Corp. ........................ 430 11,309
Weyerhaeuser Co. .......................... 520 33,218
----------
TOTAL PAPER & FOREST PRODUCTS 72,267
----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 14
RYDEX 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
PERSONAL PRODUCTS 0.2%
Avon Products, Inc. ....................... 1,050 $40,971
Estee Lauder Cos., Inc -- Class A.......... 280 12,771
----------
TOTAL PERSONAL PRODUCTS 53,742
----------
PHARMACEUTICALS 5.2%
Abbott Laboratories........................ 3,810 200,977
Allergan, Inc. ............................ 750 42,277
Barr Pharmaceuticals, Inc.*................ 270 13,562
Bristol-Myers Squibb Co. .................. 4,880 107,214
Eli Lilly & Co. ........................... 2,440 117,462
Forest Laboratories, Inc.*................. 770 26,727
Johnson & Johnson.......................... 6,990 468,959
King Pharmaceuticals, Inc.*................ 610 5,728
Merck & Co., Inc. ......................... 5,340 203,134
Mylan Laboratories, Inc. .................. 750 9,877
Pfizer, Inc. .............................. 16,680 335,435
Schering-Plough Corp. ..................... 4,000 73,640
Watson Pharmaceuticals, Inc.*.............. 260 8,070
Wyeth...................................... 3,300 146,751
----------
TOTAL PHARMACEUTICALS 1,759,813
----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 1.1%
Apartment Investment & Management
Co. -- Class A.......................... 230 8,505
AvalonBay Communities, Inc. ............... 190 18,953
Boston Properties, Inc. ................... 290 29,142
Developers Diversified Realty Corp. ....... 290 12,456
Equity Residential Properties Trust........ 670 27,818
General Growth Properties, Inc. ........... 660 27,034
HCP, Inc. ................................. 580 20,706
Host Hotels & Resorts, Inc. ............... 1,290 22,188
Kimco Realty Corp. ........................ 620 24,744
Plum Creek Timber Co., Inc. ............... 420 17,153
ProLogis................................... 640 40,070
Public Storage, Inc. ...................... 310 28,117
Simon Property Group, Inc. ................ 550 54,923
Vornado Realty Trust....................... 330 30,720
----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 362,529
----------
REAL ESTATE MANAGEMENT & DEVELOPMENT 0.0%(A)
CB Richard Ellis Group, Inc. -- Class A*... 430 9,942
----------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 9,942
----------
ROAD & RAIL 0.9%
Burlington Northern Santa Fe Corp. ........ 730 74,861
CSX Corp. ................................. 1,000 62,950
Norfolk Southern Corp. .................... 930 55,409
Ryder System, Inc. ........................ 140 9,586
Union Pacific Corp. ....................... 640 92,922
----------
TOTAL ROAD & RAIL 295,728
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.2%
Advanced Micro Devices, Inc.*.............. 1,490 8,880
Altera Corp. .............................. 760 16,173
Analog Devices, Inc. ...................... 730 23,513
Applied Materials, Inc. ................... 3,340 62,324
Broadcom Corp. -- Class A*................. 1,150 29,854
Intel Corp. ............................... 14,280 317,873
KLA-Tencor Corp. .......................... 440 19,219
Linear Technology Corp. ................... 550 19,228
LSI Logic Corp.*........................... 1,630 10,106
MEMC Electronic Materials, Inc.*........... 560 35,263
Microchip Technology, Inc. ................ 470 17,273
Micron Technology, Inc.*................... 1,880 14,514
National Semiconductor Corp. .............. 560 11,418
Novellus Systems, Inc.*.................... 250 5,465
NVIDIA Corp.*.............................. 1,370 28,154
Teradyne, Inc.*............................ 430 5,715
Texas Instruments, Inc. ................... 3,270 95,353
Xilinx, Inc. .............................. 710 17,587
----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 737,912
----------
SOFTWARE 2.9%
Adobe Systems, Inc.*....................... 1,310 48,850
Autodesk, Inc.*............................ 570 21,660
BMC Software, Inc.*........................ 470 16,337
CA, Inc. .................................. 960 21,254
Citrix Systems, Inc.*...................... 460 15,065
Compuware Corp.*........................... 680 5,127
Electronic Arts, Inc.*..................... 780 40,146
Intuit, Inc.*.............................. 810 21,846
Microsoft Corp. ........................... 19,750 563,270
Novell, Inc.*.............................. 870 5,464
Oracle Corp.*.............................. 9,760 203,496
Symantec Corp.*............................ 2,090 35,990
----------
TOTAL SOFTWARE 998,505
----------
SPECIALTY RETAIL 1.4%
Abercrombie & Fitch Co. -- Class A......... 210 15,605
AutoNation, Inc.*.......................... 330 5,283
AutoZone, Inc.*............................ 110 13,283
Bed Bath & Beyond, Inc.*................... 650 21,125
Best Buy Co., Inc. ........................ 870 37,428
GameStop Corp. -- Class A*................. 400 22,016
Gap, Inc. ................................. 1,120 20,854
Home Depot, Inc. .......................... 4,160 119,808
Limited Brands, Inc. ...................... 770 14,260
Lowe's Cos., Inc. ......................... 3,610 90,936
Office Depot, Inc.*........................ 670 8,496
OfficeMax, Inc. ........................... 190 3,471
RadioShack Corp. .......................... 320 4,448
Sherwin-Williams Co. ...................... 250 13,830
Staples, Inc. ............................. 1,730 37,541
Tiffany & Co. ............................. 310 13,497
TJX Cos., Inc. ............................ 1,080 34,798
----------
TOTAL SPECIALTY RETAIL 476,679
----------
TEXTILES, APPAREL & LUXURY GOODS 0.4%
Coach, Inc.*............................... 870 30,946
Jones Apparel Group, Inc. ................. 210 3,324
Liz Claiborne, Inc. ....................... 250 4,423
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 15
RYDEX 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
NIKE, Inc. -- Class B...................... 940 $62,792
Polo Ralph Lauren Corp. ................... 150 9,316
V.F. Corp. ................................ 220 16,364
----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 127,165
----------
THRIFTS & MORTGAGE FINANCE 0.5%
Countrywide Financial Corp. ............... 1,430 8,265
Federal Home Loan Mortgage Corp. .......... 1,590 39,607
Federal National Mortgage Association...... 2,410 68,203
Hudson City Bancorp, Inc. ................. 1,280 24,487
MGIC Investment Corp. ..................... 290 3,779
Sovereign Bancorp, Inc. ................... 890 6,648
Washington Mutual, Inc. ................... 2,610 32,077
----------
TOTAL THRIFTS & MORTGAGE FINANCE 183,066
----------
TOBACCO 1.2%
Altria Group, Inc. ........................ 5,200 104,000
Philip Morris International, Inc.*......... 5,200 265,356
Reynolds American, Inc. ................... 420 22,617
UST, Inc. ................................. 370 19,266
----------
TOTAL TOBACCO 411,239
----------
TRADING COMPANIES & DISTRIBUTORS 0.0%(A)
W.W. Grainger, Inc. ....................... 170 14,741
----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 14,741
----------
WIRELESS TELECOMMUNICATION SERVICES 0.3%
American Tower Corp. -- Class A*........... 1,000 43,420
Sprint Nextel Corp. ....................... 7,030 56,170
----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 99,590
----------
TOTAL COMMON STOCKS
(Cost $29,687,140) 29,760,380
----------
</Table>
<Table>
<Caption>
FACE MARKET
AMOUNT VALUE
- ----------------------------------------------------------------------
REPURCHASE AGREEMENTS 10.6%
State Street Bank & Trust Co., 1.850%,
dated 04/30/08, to be repurchased at
$3,597,185 on 05/01/08 collateralized by
$3,640,000 FHLB at 5.700% due 04/03/28 with
a value of $3,671,850...................... 3,597,000 $3,597,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,597,000) 3,597,000
-----------
TOTAL INVESTMENTS 97.8%
(Cost $33,284,140) 33,357,380
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--2.2% 735,699
-----------
NET ASSETS--100.0% $34,093,079
- ----------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
CONTRACTS GAIN (LOSS)
- ---------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2008 S&P 500 Index Mini Futures
Contracts (Aggregate Market Value of
Contracts $24,324,300)..................... 351 $1,070,403
----------
</Table>
<Table>
<Caption>
UNITS
- ---------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENTS PURCHASED
July 2008 S&P 500 Index Swap, Terminating
07/31/08** (Notional Market Value
$14,880,308)............................... 10,523 $ (57,455)
- ---------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
** Price return based on S&P 500 Index +/- financing at a variable rate.
FHLB--Federal Home Loan Bank
(a) Amount represents less than 0.05% of net assets.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 16
RYDEX INVERSE 2x S&P 500 ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
FACE MARKET
AMOUNT VALUE
- ----------------------------------------------------------------------
REPURCHASE AGREEMENTS 72.8%
State Street Bank & Trust Co., 1.850%,
dated 04/30/08, to be repurchased at
$42,846,202 on 05/01/08 collateralized
by $43,325,000 FHLB at 5.700% due
04/03/28 with a value of $43,704,094.... 42,844,000 $42,844,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $42,844,000) 42,844,000
-----------
UNITED STATES TREASURY BILLS 11.1%
United States Treasury Bills
0.757%, due 05/01/08(a)+................ 1,800,000 1,800,000
0.998%, due 05/08/08(a)+................ 4,750,000 4,748,947
-----------
TOTAL UNITED STATES TREASURY BILLS
(Cost $6,548,947) 6,548,947
-----------
TOTAL INVESTMENTS 83.9%
(Cost $49,392,947) 49,392,947
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--16.1% 9,505,812
-----------
NET ASSETS--100.0% $58,898,759
- ----------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
GAIN
CONTRACTS (LOSS)
- ---------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2008 S&P 500 Index Mini Futures
Contracts (Aggregate Market Value of
Contracts $9,979,200)...................... 144 $(317,848)
---------
</Table>
<Table>
<Caption>
UNITS
- ----------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT
July 2008 S&P 500 Index Swap, Terminating
07/31/08* (Notional Market Value
$104,711,073).............................. 76,654 $404,309
- ----------------------------------------------------------------------
</Table>
* Price return based on S&P 500 Index +/- financing at a variable rate.
(a) Zero coupon bond--Interest rate represents current yield to maturity.
+ Security or portions of the security was pledged as collateral for a swap
agreement sold short.
FHLB --Federal Home Loan Bank
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 17
RYDEX 2x S&P MIDCAP 400 ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------
COMMON STOCKS 86.0%
AEROSPACE & DEFENSE 0.8%
Alliant Techsystems, Inc.*................. 80 $8,798
BE Aerospace, Inc.*........................ 240 9,687
DRS Technologies, Inc. .................... 110 6,868
---------
TOTAL AEROSPACE & DEFENSE 25,353
---------
AIRLINES 0.2%
Airtran Holdings, Inc.*.................... 290 989
Alaska Air Group, Inc.*.................... 100 2,148
JetBlue Airways Corp.*..................... 470 2,369
---------
TOTAL AIRLINES 5,506
---------
AUTO COMPONENTS 1.0%
ArvinMeritor, Inc. ........................ 190 2,839
BorgWarner, Inc. .......................... 300 14,745
Gentex Corp. .............................. 370 6,911
Lear Corp.*................................ 200 5,714
Modine Manufacturing Co. .................. 80 1,406
---------
TOTAL AUTO COMPONENTS 31,615
---------
AUTOMOBILES 0.1%
Thor Industries, Inc. ..................... 90 2,729
---------
TOTAL AUTOMOBILES 2,729
---------
BEVERAGES 0.3%
Hansen Natural Corp.*...................... 160 5,662
PepsiAmericas, Inc. ....................... 150 3,855
---------
TOTAL BEVERAGES 9,517
---------
BIOTECHNOLOGY 1.3%
Cephalon, Inc.*............................ 170 10,609
Millennium Pharmaceuticals, Inc.*.......... 840 20,891
PDL BioPharma, Inc.*....................... 300 3,978
Vertex Pharmaceuticals, Inc.*.............. 340 8,677
---------
TOTAL BIOTECHNOLOGY 44,155
---------
CAPITAL MARKETS 1.6%
Affiliated Managers Group, Inc.*........... 90 8,941
Apollo Investment Corp. ................... 310 5,016
Eaton Vance Corp. ......................... 300 10,980
Jefferies Group, Inc. ..................... 290 5,452
Raymond James Financial, Inc. ............. 250 7,192
SEI Investments Co. ....................... 330 7,679
Waddell & Reed Financial, Inc. -- Class A.. 220 7,449
---------
TOTAL CAPITAL MARKETS 52,709
---------
CHEMICALS 3.3%
Airgas, Inc. .............................. 210 10,107
Albemarle Corp. ........................... 200 7,482
Cabot Corp. ............................... 170 4,957
CF Industries Holdings, Inc. .............. 120 16,044
Chemtura Corp. ............................ 620 4,291
Cytec Industries, Inc. .................... 110 6,491
Ferro Corp. ............................... 110 1,934
FMC Corp. ................................. 190 11,928
Lubrizol Corp. ............................ 180 10,498
Minerals Technologies, Inc. ............... 50 3,387
Olin Corp. ................................ 190 3,832
RPM International, Inc. ................... 310 6,913
Scotts Miracle-Gro Co. .................... 110 3,645
Sensient Technologies Corp. ............... 120 3,572
Terra Industries, Inc.*.................... 230 8,708
Valspar Corp. ............................. 260 5,715
---------
TOTAL CHEMICALS 109,504
---------
COMMERCIAL BANKS 2.2%
Associated Banc-Corp. ..................... 330 9,329
Bank of Hawaii Corp. ...................... 120 6,580
Cathay General Bancorp..................... 130 2,216
City National Corp. ....................... 100 4,852
Colonial BancGroup, Inc. .................. 510 4,151
Cullen/Frost Bankers, Inc. ................ 150 8,373
First Community Bancorp.................... 60 1,289
FirstMerit Corp. .......................... 210 4,309
SVB Financial Group*....................... 80 3,893
Synovus Financial Corp. ................... 850 10,064
TCF Financial Corp. ....................... 280 4,872
Webster Financial Corp. ................... 140 3,647
Westamerica Bancorp........................ 70 4,091
Wilmington Trust Corp. .................... 170 5,590
---------
TOTAL COMMERCIAL BANKS 73,256
---------
COMMERCIAL SERVICES & SUPPLIES 3.3%
Brink's Co. ............................... 120 8,730
ChoicePoint, Inc.*......................... 180 8,703
Copart, Inc.*.............................. 180 7,357
Corporate Executive Board Co. ............. 90 3,921
Corrections Corp. of America*.............. 320 8,160
Deluxe Corp. .............................. 130 2,764
Dun & Bradstreet Corp. .................... 150 12,645
Herman Miller, Inc. ....................... 150 3,500
HNI Corp. ................................. 110 2,395
Kelly Services, Inc. ...................... 60 1,335
Korn/Ferry International*.................. 120 2,239
Manpower, Inc. ............................ 210 14,097
Mine Safety Appliances Co. ................ 80 2,974
Navigant Consulting, Inc.*................. 120 2,414
Republic Services, Inc. ................... 410 13,034
Rollins, Inc. ............................. 110 1,752
Stericycle, Inc.*.......................... 230 12,277
---------
TOTAL COMMERCIAL SERVICES & SUPPLIES 108,297
---------
COMMUNICATIONS EQUIPMENT 1.8%
3Com Corp.*................................ 1,040 2,486
ADC Telecommunications, Inc.*.............. 300 4,206
Adtran, Inc. .............................. 150 3,549
Avocent Corp.*............................. 120 2,341
CommScope, Inc.*........................... 170 8,083
Dycom Industries, Inc.*.................... 110 1,582
F5 Networks, Inc.*......................... 220 4,979
Foundry Networks, Inc.*.................... 390 4,965
Harris Corp. .............................. 350 18,910
Plantronics, Inc. ......................... 130 3,238
Polycom, Inc.*............................. 230 5,152
---------
TOTAL COMMUNICATIONS EQUIPMENT 59,491
---------
COMPUTERS & PERIPHERALS 1.2%
Diebold, Inc. ............................. 170 6,664
Imation Corp. ............................. 80 1,875
NCR Corp.*................................. 450 11,084
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 18
RYDEX 2x S&P MIDCAP 400 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Palm, Inc. ................................ 280 $1,613
Western Digital Corp.*..................... 570 16,524
---------
TOTAL COMPUTERS & PERIPHERALS 37,760
---------
CONSTRUCTION & ENGINEERING 1.1%
Granite Construction, Inc. ................ 80 2,744
KBR, Inc. ................................. 440 12,689
Quanta Services, Inc.*..................... 440 11,678
URS Corp.*................................. 220 8,875
---------
TOTAL CONSTRUCTION & ENGINEERING 35,986
---------
CONSTRUCTION MATERIALS 0.4%
Martin Marietta Materials, Inc. ........... 110 12,032
---------
TOTAL CONSTRUCTION MATERIALS 12,032
---------
CONSUMER FINANCE 0.1%
AmeriCredit Corp.*......................... 300 4,188
---------
TOTAL CONSUMER FINANCE 4,188
---------
CONTAINERS & PACKAGING 0.8%
AptarGroup, Inc. .......................... 180 7,947
Packaging Corp. of America................. 240 5,275
Sonoco Products Co. ....................... 260 8,567
Temple-Inland, Inc. ....................... 270 3,151
---------
TOTAL CONTAINERS & PACKAGING 24,940
---------
DIVERSIFIED CONSUMER SERVICES 1.5%
Career Education Corp.*.................... 230 4,634
Corinthian Colleges, Inc.*................. 220 2,497
DeVry, Inc. ............................... 150 8,550
ITT Educational Services, Inc.*............ 80 6,133
Matthews International Corp. -- Class A.... 80 3,955
Regis Corp. ............................... 110 3,212
Service Corp. International................ 680 7,555
Sotheby's.................................. 170 4,709
Strayer Education, Inc. ................... 40 7,428
---------
TOTAL DIVERSIFIED CONSUMER SERVICES 48,673
---------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.1%
Cincinnati Bell, Inc.*..................... 640 2,970
---------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 2,970
---------
ELECTRIC UTILITIES 1.6%
Aquila, Inc.*.............................. 970 3,492
DPL, Inc. ................................. 290 8,071
Great Plains Energy, Inc. ................. 220 5,641
Hawaiian Electric Industries, Inc. ........ 220 5,423
IDACORP, Inc. ............................. 120 3,893
Northeast Utilities........................ 400 10,528
Sierra Pacific Resources................... 600 8,178
Westar Energy, Inc. ....................... 250 5,797
---------
TOTAL ELECTRIC UTILITIES 51,023
---------
ELECTRICAL EQUIPMENT 1.2%
AMETEK, Inc. .............................. 280 13,586
Hubbell, Inc. -- Class A................... 150 6,709
Roper Industries, Inc. .................... 230 14,287
Thomas & Betts Corp.*...................... 130 4,870
---------
TOTAL ELECTRICAL EQUIPMENT 39,452
---------
ELECTRONIC EQUIPMENT & INSTRUMENTS 1.9%
Amphenol Corp. ............................ 460 21,243
Arrow Electronics, Inc.*................... 320 8,707
Avnet, Inc.*............................... 390 10,214
Ingram Micro, Inc. -- Class A*............. 380 6,464
KEMET Corp.*............................... 220 895
National Instruments Corp. ................ 150 4,413
Tech Data Corp.*........................... 140 4,706
Vishay Intertechnology, Inc.*.............. 480 4,536
---------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 61,178
---------
ENERGY EQUIPMENT & SERVICES 2.9%
Exterran Holdings, Inc.*................... 170 11,354
FMC Technologies, Inc.*.................... 340 22,848
Helmerich & Payne, Inc. ................... 270 14,513
Patterson-UTI Energy, Inc. ................ 400 11,176
Pride International, Inc.*................. 430 18,253
Superior Energy Services, Inc.*............ 210 9,320
Tidewater, Inc. ........................... 140 9,131
---------
TOTAL ENERGY EQUIPMENT & SERVICES 96,595
---------
FOOD & STAPLES RETAILING 0.3%
BJ's Wholesale Club, Inc.*................. 150 5,718
Ruddick Corp. ............................. 100 3,870
---------
TOTAL FOOD & STAPLES RETAILING 9,588
---------
FOOD PRODUCTS 1.1%
Corn Products International, Inc. ......... 190 8,812
Hormel Foods Corp. ........................ 190 7,488
J.M. Smucker Co. .......................... 140 6,983
Lancaster Colony Corp. .................... 50 1,910
Smithfield Foods, Inc.*.................... 300 8,604
Tootsie Roll Industries, Inc. ............. 70 1,703
---------
TOTAL FOOD PRODUCTS 35,500
---------
GAS UTILITIES 2.1%
AGL Resources, Inc. ....................... 200 6,800
Energen Corp. ............................. 190 12,966
Equitable Resources, Inc. ................. 320 21,238
National Fuel Gas Co. ..................... 220 11,260
Oneok, Inc. ............................... 270 12,992
WGL Holdings, Inc. ........................ 130 4,264
---------
TOTAL GAS UTILITIES 69,520
---------
HEALTH CARE EQUIPMENT & SUPPLIES 3.5%
Advanced Medical Optics, Inc.*............. 160 3,360
Beckman Coulter, Inc. ..................... 160 10,928
Dentsply International, Inc. .............. 390 15,159
Edwards Lifesciences Corp.*................ 150 8,313
Gen-Probe, Inc.*........................... 140 7,890
Hill-Rom Holdings, Inc. ................... 160 4,021
Hologic, Inc.*............................. 660 19,266
Intuitive Surgical, Inc.*.................. 100 28,926
Kinetic Concepts, Inc.*.................... 140 5,552
ResMed, Inc.*.............................. 200 8,624
STERIS Corp. .............................. 160 4,434
---------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 116,473
---------
HEALTH CARE PROVIDERS & SERVICES 2.4%
Apria Healthcare Group, Inc.*.............. 110 1,938
Community Health Systems, Inc.*............ 250 9,383
Health Management Associates, Inc. -- Class
A*...................................... 630 4,492
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 19
RYDEX 2x S&P MIDCAP 400 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Health Net, Inc.*.......................... 280 $8,201
Henry Schein, Inc.*........................ 230 12,735
Kindred Healthcare, Inc.*.................. 80 1,898
LifePoint Hospitals, Inc.*................. 150 4,518
Lincare Holdings, Inc.*.................... 190 4,625
Omnicare, Inc. ............................ 310 6,309
Psychiatric Solutions, Inc.*............... 140 4,859
Universal Health Services, Inc. -- Class
B....................................... 130 8,143
VCA Antech, Inc.*.......................... 220 7,121
WellCare Health Plans, Inc.*............... 110 4,816
---------
TOTAL HEALTH CARE PROVIDERS & SERVICES 79,038
---------
HEALTH CARE TECHNOLOGY 0.2%
Cerner Corp.*.............................. 170 7,866
---------
TOTAL HEALTH CARE TECHNOLOGY 7,866
---------
HOTELS, RESTAURANTS & LEISURE 1.2%
Bob Evans Farms, Inc. ..................... 80 2,246
Boyd Gaming Corp. ......................... 150 2,813
Brinker International, Inc. ............... 260 5,899
CBRL Group, Inc. .......................... 60 2,216
Cheesecake Factory, Inc.*.................. 180 4,073
Chipotle Mexican Grill, Inc. -- Class A*... 90 8,832
International Speedway Corp. -- Class A.... 80 3,394
Life Time Fitness, Inc.*................... 90 3,272
Ruby Tuesday, Inc. ........................ 130 1,106
Scientific Games Corp. -- Class A*......... 170 4,787
---------
TOTAL HOTELS, RESTAURANTS & LEISURE 38,638
---------
HOUSEHOLD DURABLES 1.3%
American Greetings Corp. -- Class A........ 130 2,327
Blyth, Inc. ............................... 60 1,010
Furniture Brands International, Inc. ...... 130 1,762
Hovnanian Enterprises, Inc. -- Class A*.... 100 1,182
MDC Holdings, Inc. ........................ 90 3,922
Mohawk Industries, Inc.*................... 140 10,667
NVR, Inc.*................................. 10 6,135
Ryland Group, Inc. ........................ 110 3,518
Toll Brothers, Inc.*....................... 330 7,471
Tupperware Brands Corp. ................... 160 6,304
---------
TOTAL HOUSEHOLD DURABLES 44,298
---------
HOUSEHOLD PRODUCTS 0.7%
Church & Dwight Co., Inc. ................. 170 9,659
Energizer Holdings, Inc.*.................. 150 11,859
---------
TOTAL HOUSEHOLD PRODUCTS 21,518
---------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.1%
Black Hills Corp. ......................... 100 3,901
---------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 3,901
---------
INDUSTRIAL CONGLOMERATES 0.3%
Carlisle Cos., Inc. ....................... 160 4,621
Teleflex, Inc. ............................ 100 5,509
---------
TOTAL INDUSTRIAL CONGLOMERATES 10,130
---------
INSURANCE 3.3%
American Financial Group, Inc. ............ 180 4,936
Arthur J. Gallagher & Co. ................. 240 5,897
Brown & Brown, Inc. ....................... 290 5,568
Commerce Group, Inc. ...................... 110 4,008
Everest Re Group, Ltd. .................... 160 14,456
Fidelity National Financial, Inc. -- Class
A....................................... 550 8,795
First American Corp. ...................... 240 7,872
Hanover Insurance Group, Inc. ............. 130 5,834
HCC Insurance Holdings, Inc. .............. 300 7,404
Horace Mann Educators Corp. ............... 100 1,692
Mercury General Corp. ..................... 90 4,490
Old Republic International Corp. .......... 600 8,610
Protective Life Corp. ..................... 180 7,672
Stancorp Financial Group, Inc. ............ 130 6,661
Unitrin, Inc. ............................. 130 4,932
W.R. Berkley Corp. ........................ 400 10,276
---------
TOTAL INSURANCE 109,103
---------
INTERNET & CATALOG RETAIL 0.1%
NetFlix, Inc.*............................. 120 3,838
---------
TOTAL INTERNET & CATALOG RETAIL 3,838
---------
INTERNET SOFTWARE & SERVICES 0.3%
Digital River, Inc.*....................... 100 3,285
ValueClick, Inc.*.......................... 250 4,988
---------
TOTAL INTERNET SOFTWARE & SERVICES 8,273
---------
IT SERVICES 1.8%
Acxiom Corp. .............................. 180 2,129
Alliance Data Systems Corp.*............... 200 11,482
Broadridge Financial Solutions, Inc. ...... 360 6,703
CSG Systems International, Inc.*........... 90 1,089
DST Systems, Inc.*......................... 130 7,779
Gartner, Inc.*............................. 170 3,896
Global Payments, Inc. ..................... 210 9,295
Metavante Technologies, Inc.*.............. 230 5,421
MoneyGram International, Inc. ............. 210 326
MPS Group, Inc.*........................... 250 2,683
NeuStar, Inc.*............................. 200 5,502
SRA International, Inc. -- Class A*........ 110 2,890
---------
TOTAL IT SERVICES 59,195
---------
LEISURE EQUIPMENT & PRODUCTS 0.1%
Callaway Golf Co. ......................... 170 2,336
---------
TOTAL LEISURE EQUIPMENT & PRODUCTS 2,336
---------
LIFE SCIENCES TOOLS & SERVICES 1.8%
Affymetrix, Inc.*.......................... 180 1,964
Charles River Laboratories International,
Inc.*................................... 180 10,449
Covance, Inc.*............................. 170 14,244
Invitrogen Corp.*.......................... 120 11,229
Pharmaceutical Product Development, Inc. .. 270 11,183
Techne Corp.*.............................. 100 7,252
Varian, Inc.*.............................. 80 4,074
----- ---------
TOTAL LIFE SCIENCES TOOLS & SERVICES 60,395
----- ---------
MACHINERY 5.2%
AGCO Corp.*................................ 240 14,431
Crane Co. ................................. 130 5,322
Donaldson Co., Inc. ....................... 180 7,837
Federal Signal Corp. ...................... 120 1,666
Flowserve Corp. ........................... 150 18,613
Graco, Inc. ............................... 160 6,626
Harsco Corp. .............................. 220 13,053
IDEX Corp. ................................ 210 7,705
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 20
RYDEX 2x S&P MIDCAP 400 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Joy Global, Inc. .......................... 280 $20,790
Kennametal, Inc. .......................... 200 6,954
Lincoln Electric Holdings, Inc. ........... 110 8,393
Nordson Corp. ............................. 90 5,313
Oshkosh Truck Corp. ....................... 190 7,714
Pentair, Inc. ............................. 260 9,576
SPX Corp. ................................. 140 17,220
Timken Co. ................................ 250 9,037
Trinity Industries, Inc. .................. 210 6,384
Wabtec Corp. .............................. 130 5,574
---------
TOTAL MACHINERY 172,208
---------
MARINE 0.2%
Alexander & Baldwin, Inc. ................. 110 5,525
---------
TOTAL MARINE 5,525
---------
MEDIA 0.8%
Belo Corp. -- Class A...................... 230 2,323
Entercom Communications Corp. -- Class A... 70 742
Getty Images, Inc.*........................ 120 3,918
Harte-Hanks, Inc. ......................... 120 1,639
John Wiley & Sons, Inc. -- Class A......... 120 5,526
Lamar Advertising Co. -- Class A*.......... 200 7,908
Lee Enterprises, Inc. ..................... 100 773
Media General, Inc. -- Class A............. 60 881
Scholastic Corp.*.......................... 70 1,971
Valassis Communications, Inc.*............. 120 1,704
---------
TOTAL MEDIA 27,385
---------
METALS & MINING 2.0%
Carpenter Technology Corp. ................ 130 6,666
Cleveland-Cliffs, Inc. .................... 120 19,248
Commercial Metals Co. ..................... 300 9,342
Reliance Steel & Aluminum Co. ............. 160 9,725
Steel Dynamics, Inc. ...................... 490 17,076
Worthington Industries, Inc. .............. 170 3,062
---------
TOTAL METALS & MINING 65,119
---------
MULTI-UTILITIES 2.9%
Alliant Energy Corp. ...................... 290 10,924
Energy East Corp. ......................... 410 9,348
MDU Resources Group, Inc. ................. 470 13,569
NSTAR...................................... 280 9,019
OGE Energy Corp. .......................... 240 7,846
PNM Resources, Inc. ....................... 200 2,898
Puget Energy, Inc. ........................ 330 8,979
SCANA Corp. ............................... 300 11,829
Vectren Corp. ............................. 200 5,656
Wisconsin Energy Corp. .................... 300 14,238
---------
TOTAL MULTI-UTILITIES 94,306
---------
MULTILINE RETAIL 0.4%
99 Cents Only Stores*...................... 120 1,141
Dollar Tree Stores, Inc.*.................. 240 7,584
Saks, Inc.*................................ 370 4,814
---------
TOTAL MULTILINE RETAIL 13,539
---------
OFFICE ELECTRONICS 0.2%
Zebra Technologies Corp. -- Class A*....... 170 6,248
---------
TOTAL OFFICE ELECTRONICS 6,248
---------
OIL, GAS & CONSUMABLE FUELS 5.9%
Arch Coal, Inc. ........................... 370 21,223
Bill Barrett Corp.*........................ 90 4,629
Cimarex Energy Co. ........................ 210 13,083
Denbury Resources, Inc.*................... 630 19,253
Encore Acquisition Co.*.................... 140 6,388
Forest Oil Corp.*.......................... 230 13,554
Frontier Oil Corp. ........................ 270 6,710
Newfield Exploration Co.*.................. 340 20,658
Overseas Shipholding Group, Inc. .......... 70 5,268
Pioneer Natural Resources Co. ............. 310 17,896
Plains Exploration & Production Co.*....... 290 18,061
Quicksilver Resources, Inc.*............... 270 11,202
Southwestern Energy Co.*................... 880 37,233
---------
TOTAL OIL, GAS & CONSUMABLE FUELS 195,158
---------
PAPER & FOREST PRODUCTS 0.1%
Louisiana-Pacific Corp. ................... 270 3,108
---------
TOTAL PAPER & FOREST PRODUCTS 3,108
---------
PERSONAL PRODUCTS 0.3%
Alberto-Culver Co. ........................ 220 5,537
NBTY, Inc.*................................ 140 3,941
---------
TOTAL PERSONAL PRODUCTS 9,478
---------
PHARMACEUTICALS 0.9%
Endo Pharmaceuticals Holdings, Inc.*....... 350 8,690
Medicis Pharmaceutical Corp. -- Class A.... 150 3,090
Par Pharmaceutical Cos., Inc.*............. 90 1,535
Perrigo Co. ............................... 200 8,198
Sepracor, Inc.*............................ 290 6,250
Valeant Pharmaceuticals International*..... 230 3,054
---------
TOTAL PHARMACEUTICALS 30,817
---------
REAL ESTATE INVESTMENT TRUSTS (REITS) 5.3%
Alexandria Real Estate Equities, Inc. ..... 80 8,402
AMB Property Corp. ........................ 250 14,437
BRE Properties, Inc. ...................... 130 6,234
Camden Property Trust...................... 140 7,407
Cousins Properties, Inc. .................. 100 2,541
Duke Realty Corp. ......................... 380 9,280
Equity One, Inc. .......................... 100 2,470
Federal Realty Investment Trust............ 150 12,322
Health Care REIT, Inc. .................... 230 11,144
Highwoods Properties, Inc. ................ 150 5,256
Hospitality Properties Trust............... 240 7,711
Liberty Property Trust..................... 240 8,407
Macerich Co. .............................. 190 13,895
Mack-Cali Realty Corp. .................... 170 6,633
Nationwide Health Properties, Inc. ........ 250 9,005
Potlatch Corp. ............................ 100 4,481
Rayonier, Inc. ............................ 200 8,406
Realty Income Corp. ....................... 260 6,841
Regency Centers Corp. ..................... 180 12,883
UDR, Inc. ................................. 340 8,595
Weingarten Realty Investors................ 190 7,009
---------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 173,359
---------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 21
RYDEX 2x S&P MIDCAP 400 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- -----------------------------------------------------------------
COMMON STOCKS (CONTINUED)
REAL ESTATE MANAGEMENT & DEVELOPMENT 0.2%
Jones Lang LaSalle, Inc. .................. 80 $6,209
---------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 6,209
---------
ROAD & RAIL 0.9%
Avis Budget Group, Inc.*................... 270 3,586
Con-way, Inc. ............................. 120 5,550
J.B. Hunt Transport Services, Inc. ........ 220 7,473
Kansas City Southern*...................... 200 9,016
Werner Enterprises, Inc. .................. 110 2,140
YRC Worldwide, Inc.*....................... 150 2,437
---------
TOTAL ROAD & RAIL 30,202
---------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.1%
Atmel Corp.*............................... 1,150 4,278
Cree, Inc.*................................ 230 5,980
Cypress Semiconductor Corp.*............... 390 10,967
Fairchild Semiconductor International,
Inc.*................................... 320 4,173
Integrated Device Technology, Inc.*........ 490 5,238
International Rectifier Corp.*............. 190 4,324
Intersil Corp. -- Class A.................. 330 8,818
Lam Research Corp.*........................ 320 13,069
RF Micro Devices, Inc.*.................... 750 2,527
Semtech Corp.*............................. 170 2,761
Silicon Laboratories, Inc.*................ 140 4,728
TriQuint Semiconductor, Inc.*.............. 370 2,438
---------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 69,301
---------
SOFTWARE 2.5%
ACI Worldwide, Inc.*....................... 90 1,989
Activision, Inc.*.......................... 760 20,558
Advent Software, Inc.*..................... 50 1,993
Cadence Design Systems, Inc.*.............. 720 8,014
Fair Isaac Corp. .......................... 130 3,220
Jack Henry & Associates, Inc. ............. 200 5,256
Macrovision Solutions Corp.*............... 140 2,209
McAfee, Inc.*.............................. 420 13,965
Mentor Graphics Corp.*..................... 230 2,316
Parametric Technology Corp.*............... 300 5,229
Sybase, Inc.*.............................. 200 5,884
Synopsys, Inc.*............................ 370 8,551
Wind River Systems, Inc.*.................. 200 1,648
---------
TOTAL SOFTWARE 80,832
---------
SPECIALTY RETAIL 3.6%
Advance Auto Parts, Inc. .................. 240 8,323
Aeropostale, Inc.*......................... 170 5,404
American Eagle Outfitters, Inc. ........... 550 10,103
AnnTaylor Stores Corp.*.................... 160 4,048
Barnes & Noble, Inc. ...................... 120 3,874
Borders Group, Inc. ....................... 150 945
CarMax, Inc.*.............................. 560 11,620
Charming Shoppes, Inc.*.................... 300 1,548
Chico's FAS, Inc.*......................... 450 3,182
Coldwater Creek, Inc.*..................... 150 801
Collective Brands, Inc.*................... 170 2,103
Dick's Sporting Goods, Inc.*............... 220 6,292
Foot Locker, Inc. ......................... 400 5,060
Guess?, Inc. .............................. 140 5,359
O'Reilly Automotive, Inc.*................. 300 8,661
Pacific Sunwear of California, Inc.*....... 180 2,414
Petsmart, Inc. ............................ 330 7,385
Rent-A-Center, Inc.*....................... 170 3,660
Ross Stores, Inc. ......................... 350 11,721
Urban Outfitters, Inc.*.................... 290 9,933
Williams-Sonoma, Inc. ..................... 230 6,072
---------
TOTAL SPECIALTY RETAIL 118,508
---------
TEXTILES, APPAREL & LUXURY GOODS 0.7%
Hanesbrands, Inc.*......................... 250 8,755
Phillips-Van Heusen Corp. ................. 130 5,487
Timberland Co. -- Class A*................. 130 1,898
Warnaco Group, Inc.*....................... 120 5,537
---------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 21,677
---------
THRIFTS & MORTGAGE FINANCE 1.0%
Astoria Financial Corp. ................... 210 4,977
First Niagara Financial Group, Inc. ....... 270 3,896
IndyMac Bancorp, Inc. ..................... 210 683
New York Community Bancorp, Inc. .......... 840 15,683
PMI Group, Inc. ........................... 210 1,182
Radian Group, Inc. ........................ 210 1,134
Washington Federal, Inc. .................. 230 5,476
---------
TOTAL THRIFTS & MORTGAGE FINANCE 33,031
---------
TOBACCO 0.1%
Universal Corp. ........................... 70 4,493
---------
TOTAL TOBACCO 4,493
---------
TRADING COMPANIES & DISTRIBUTORS 0.9%
Fastenal Co. .............................. 320 15,619
GATX Corp. ................................ 120 5,280
MSC Industrial Direct Co. ................. 120 5,851
United Rentals, Inc.*...................... 200 3,768
---------
TOTAL TRADING COMPANIES & DISTRIBUTORS 30,518
---------
WATER UTILITIES 0.2%
Aqua America, Inc. ........................ 340 6,266
---------
TOTAL WATER UTILITIES 6,266
---------
WIRELESS TELECOMMUNICATION SERVICES 0.3%
Telephone & Data Systems, Inc. ............ 270 10,341
---------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 10,341
---------
TOTAL COMMON STOCKS (Cost $2,867,790) 2,824,167
---------
</Table>
<Table>
<Caption>
FACE
AMOUNT
- -------------------------------------------------------------------
REPURCHASE AGREEMENTS 12.6%
State Street Bank & Trust Co., 1.850%,
dated 04/30/08, to be repurchased at
$412,021 on 05/01/08 collateralized by
$420,000 FHLB at 5.700% due 04/03/28
with a value of $423,675................ 412,000 $412,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $412,000) 412,000
-----------
TOTAL INVESTMENTS 98.6%
(Cost $3,279,790) 3,236,167
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--1.4% 43,309
-----------
NET ASSETS--100.0% $3,279,476
- -------------------------------------------------------------------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 22
RYDEX 2x S&P MIDCAP 400 ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
UNREALIZED
CONTRACTS GAIN
- ---------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2008 S&P MidCap 400 Index Mini Futures
Contracts (Aggregate Market Value of
Contracts $2,436,290)................... 29 $169,652
- ---------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
UNITS GAIN
- ---------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENTS PURCHASED
May 2008 S&P MidCap 400 Index Swap,
Terminating 05/20/08** (Notional Market
Value $1,300,353)....................... 1,550 $60,059
- ---------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
** Price return based on S&P MidCap 400 Index +/- financing at a variable
rate.
FHLB--Federal Home Loan Bank
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 23
RYDEX INVERSE 2x S&P MIDCAP 400 ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
FACE MARKET
AMOUNT VALUE
- ---------------------------------------------------------------------
REPURCHASE AGREEMENTS 86.3%
State Street Bank & Trust Co., 1.850%,
dated 04/30/08 to be repurchased at
$6,727,346 on 05/01/08 collateralized by
$6,805,000 FHLB at 5.700% due 04/03/28
with a value of $6,864,544.............. 6,727,000 $6,727,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $6,727,000) 6,727,000
----------
TOTAL INVESTMENTS 86.3%
(Cost $6,727,000) 6,727,000
----------
OTHER ASSETS IN EXCESS OF LIABILITIES--13.7% 1,071,073
----------
NET ASSETS--100.0% $7,798,073
- ---------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
CONTRACTS LOSS
- ---------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2008 S&P MidCap 400 Index Mini Futures
Contracts (Aggregate Market Value of
Contracts $1,008,120)................... 12 $(39,508)
---------
<Caption>
Units
- ---------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT
May 2008 S&P MidCap 400 Index Swap,
Terminating 05/20/08* (Notional Market
Value $14,613,390)...................... 17,421 $(294,916)
- ---------------------------------------------------------------------
</Table>
* Price return based on S&P MidCap 400 Index +/- financing at a variable
rate.
FHLB --Federal Home Loan Bank
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 24
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS 85.8%
AEROSPACE & DEFENSE 1.4%
AAR Corp.*................................. 320 $7,488
Aerovironment, Inc.*....................... 60 1,435
American Science & Engineering, Inc. ...... 80 3,898
Applied Energetics, Inc.*.................. 270 578
Argon ST, Inc.*............................ 110 2,025
Ceradyne, Inc.*............................ 230 8,961
Cubic Corp. ............................... 130 3,524
Curtiss-Wright Corp. ...................... 380 18,046
DynCorp International, Inc.*............... 220 3,949
Esterline Technologies Corp.*.............. 250 13,915
GenCorp, Inc.*............................. 480 4,114
Heico Corp. ............................... 220 11,332
Hexcel Corp.*.............................. 810 18,128
Innovative Solutions & Support, Inc.*...... 110 1,018
Ladish Co., Inc.*.......................... 120 3,607
Moog, Inc.*................................ 330 14,226
MTC Technologies, Inc.*.................... 80 1,909
Orbital Sciences Corp.*.................... 510 13,724
Stanley, Inc.*............................. 70 1,766
Taser International, Inc.*................. 530 3,954
Teledyne Technologies, Inc.*............... 300 17,619
TransDigm Group, Inc.*..................... 90 3,417
Triumph Group, Inc. ....................... 140 8,242
-----------
TOTAL AEROSPACE & DEFENSE 166,875
-----------
AIR FREIGHT & LOGISTICS 0.3%
ABX Air, Inc.*............................. 540 1,447
Atlas Air Worldwide Holdings, Inc.*........ 110 6,675
Dynamex, Inc.*............................. 90 2,262
Forward Air Corp. ......................... 260 8,863
HUB Group, Inc. -- Class A*................ 330 10,788
Pacer International, Inc. ................. 300 5,568
Park-Ohio Holdings Corp.*.................. 70 1,167
-----------
TOTAL AIR FREIGHT & LOGISTICS 36,770
-----------
AIRLINES 0.3%
Airtran Holdings, Inc.*.................... 790 2,694
Alaska Air Group, Inc.*.................... 330 7,088
Allegiant Travel Co.*...................... 50 1,362
ExpressJet Holdings, Inc.*................. 470 1,424
JetBlue Airways Corp.*..................... 1,540 7,762
Pinnacle Airlines Corp.*................... 160 1,331
Republic Airways Holdings, Inc.*........... 280 4,721
SkyWest, Inc. ............................. 520 9,896
-----------
TOTAL AIRLINES 36,278
-----------
AUTO COMPONENTS 0.9%
Aftermarket Technology Corp.*.............. 190 4,353
American Axle & Manufacturing Holdings,
Inc. ................................... 390 7,855
Amerigon, Inc.*............................ 190 2,789
ArvinMeritor, Inc. ........................ 620 9,263
Cooper Tire & Rubber Co. .................. 530 6,964
Drew Industries, Inc.*..................... 160 3,903
Exide Technologies*........................ 640 9,338
Hayes Lemmerz International, Inc.*......... 860 2,580
Lear Corp.*................................ 660 18,856
Modine Manufacturing Co. .................. 280 4,920
Noble International, Ltd. ................. 100 625
Raser Technologies, Inc.*.................. 270 2,932
Sauer-Danfoss, Inc. ....................... 90 2,598
Spartan Motors, Inc. ...................... 280 2,629
Standard Motor Products, Inc. ............. 140 851
Stoneridge, Inc.*.......................... 120 1,748
Superior Industries International, Inc. ... 200 4,062
Tenneco, Inc.*............................. 400 10,232
Visteon Corp.*............................. 1,120 4,861
-----------
TOTAL AUTO COMPONENTS 101,359
-----------
AUTOMOBILES 0.1%
Fleetwood Enterprises, Inc.*............... 550 1,898
Monaco Coach Corp. ........................ 260 1,646
Winnebago Industries, Inc. ................ 250 4,022
-----------
TOTAL AUTOMOBILES 7,566
-----------
BEVERAGES 0.2%
Boston Beer Co., Inc. -- Class A*.......... 80 3,544
Central European Distribution Corp.*....... 300 18,276
Coca-Cola Bottling Co. Consolidated........ 50 2,861
Jones Soda Co.*............................ 220 713
MGP Ingredients, Inc. ..................... 90 659
National Beverage Corp. ................... 90 725
-----------
TOTAL BEVERAGES 26,778
-----------
BIOTECHNOLOGY 3.0%
Acadia Pharmaceuticals, Inc.*.............. 270 2,160
Acorda Therapeutics, Inc.*................. 250 5,262
Affymax, Inc.*............................. 40 618
Alexion Pharmaceuticals, Inc.*............. 310 21,818
Alkermes, Inc.*............................ 870 10,814
Allos Therapeutics, Inc.*.................. 360 2,030
Alnylam Pharmaceuticals, Inc.*............. 300 7,524
Altus Pharmaceuticals, Inc.*............... 180 742
Amicus Therapeutics, Inc.*................. 40 422
Applera Corp. -- Celera Group*............. 680 9,098
Arena Pharmaceuticals, Inc.*............... 620 3,466
Ariad Pharmaceuticals, Inc.*............... 590 1,746
ArQule, Inc.*.............................. 340 1,309
Array BioPharma, Inc.*..................... 400 2,488
BioMarin Pharmaceutical, Inc.*............. 830 30,262
Bionovo, Inc.*............................. 450 508
Cell Genesys, Inc.*........................ 670 2,573
Cepheid, Inc.*............................. 470 9,198
Cubist Pharmaceuticals, Inc.*.............. 480 9,293
CV Therapeutics, Inc.*..................... 510 4,666
Cytokinetics, Inc.*........................ 300 1,035
CytRx Corp.*............................... 750 637
Dendreon Corp.*............................ 720 3,794
Emergent Biosolutions, Inc.*............... 50 471
Encysive Pharmaceuticals, Inc.*............ 590 1,381
Enzon Pharmaceuticals, Inc.*............... 380 3,314
Genomic Health, Inc.*...................... 120 2,582
GenVec, Inc.*.............................. 570 1,146
Geron Corp.*............................... 630 2,974
GTx, Inc.*................................. 150 2,557
Halozyme Therapeutics, Inc.*............... 550 2,717
Human Genome Sciences, Inc.*............... 1,160 7,598
Idenix Pharmaceuticals, Inc.*.............. 210 1,361
Immunomedics, Inc.*........................ 500 1,215
Incyte Corp.*.............................. 720 7,812
Indevus Pharmaceuticals, Inc.*............. 530 2,549
InterMune, Inc.*........................... 260 4,121
Isis Pharmaceuticals, Inc.*................ 800 9,424
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 25
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Keryx Biopharmaceuticals, Inc.*............ 380 $198
Kosan Biosciences, Inc.*................... 370 614
LifeCell Corp.*............................ 290 14,726
Ligand Pharmaceuticals, Inc. -- Class B*... 730 2,956
MannKind Corp.*............................ 450 1,170
Martek Biosciences Corp.*.................. 280 9,873
Maxygen, Inc.*............................. 210 1,245
Medarex, Inc.*............................. 1,080 7,744
Metabolix, Inc.*........................... 120 1,321
Molecular Insight Pharmaceuticals, Inc.*... 40 313
Momenta Pharmaceuticals, Inc.*............. 200 2,796
Myriad Genetics, Inc.*..................... 370 15,370
Nabi Biopharmaceuticals*................... 450 1,813
Nanosphere, Inc.*.......................... 60 400
Neurocrine Biosciences, Inc.*.............. 330 1,792
Neurogen Corp.*............................ 270 265
Novacea, Inc.*............................. 60 175
Omrix Biopharmaceuticals, Inc.*............ 120 1,782
Onyx Pharmaceuticals, Inc.*................ 470 16,525
Orexigen Therapeutics, Inc.*............... 80 850
OSI Pharmaceuticals, Inc.*................. 500 17,325
Osiris Therapeutics, Inc.*................. 130 1,504
Poniard Pharmaceuticals, Inc.*............. 200 734
Progenics Pharmaceuticals, Inc.*........... 220 2,963
Protalix BioTherapeutics, Inc.*............ 20 55
Regeneron Pharmaceuticals, Inc.*........... 550 10,791
Rigel Pharmaceuticals, Inc.*............... 310 6,975
Savient Pharmaceuticals, Inc.*............. 460 10,046
Seattle Genetics, Inc.*.................... 500 5,080
Senomyx, Inc.*............................. 260 1,560
Synta Pharmaceuticals Corp.*............... 40 268
Telik, Inc.*............................... 450 949
Tercica, Inc.*............................. 280 1,392
Trubion Pharmaceuticals, Inc.*............. 70 494
United Therapeutics Corp.*................. 190 16,055
Vanda Pharmaceuticals, Inc.*............... 230 812
XOMA, Ltd.*................................ 1,130 2,735
Zymogenetics, Inc.*........................ 340 3,026
-----------
TOTAL BIOTECHNOLOGY 347,377
-----------
BUILDING PRODUCTS 0.4%
AAON, Inc. ................................ 120 2,170
American Woodmark Corp. ................... 90 1,698
Ameron International Corp. ................ 80 7,904
Apogee Enterprises, Inc. .................. 250 5,577
Builders FirstSource, Inc.*................ 130 857
China Architectural Engineering, Inc.*..... 40 218
Gibraltar Industries, Inc. ................ 220 2,299
Griffon Corp.*............................. 260 2,431
Insteel Industries, Inc. .................. 160 1,994
NCI Building Systems, Inc.*................ 170 4,104
PGT, Inc.*................................. 90 287
Quanex Building Products Corp.*............ 320 5,440
Simpson Manufacturing Co., Inc. ........... 320 8,445
Trex Co., Inc.*............................ 100 910
Universal Forest Products, Inc. ........... 140 4,859
-----------
TOTAL BUILDING PRODUCTS 49,193
-----------
CAPITAL MARKETS 1.5%
Apollo Investment Corp. ................... 1,031 16,674
Ares Capital Corp. ........................ 801 9,014
BGC Partners, Inc. -- Class A*............. 170 1,639
BlackRock Kelso Capital Corp. ............. 91 1,114
Calamos Asset Management, Inc. ............ 170 3,051
Capital Southwest Corp. ................... 30 3,568
Cohen & Steers, Inc. ...................... 150 4,188
Cowen Group, Inc.*......................... 130 865
Epoch Holding Corp. ....................... 70 832
Evercore Partners, Inc. -- Class A......... 80 1,349
FBR Capital Markets Corp.*................. 270 1,755
FCStone Group, Inc.*....................... 80 3,314
GAMCO Investors, Inc. ..................... 50 2,301
GFI Group, Inc. ........................... 550 6,462
Gladstone Capital Corp. ................... 180 3,380
Greenhill & Co., Inc. ..................... 150 9,757
Hercules Technology Growth Capital, Inc. .. 280 2,842
HFF, Inc. -- Class A*...................... 140 881
Kayne Anderson Energy Development Co. ..... 90 1,996
KBW, Inc.*................................. 250 5,935
Knight Capital Group, Inc.*................ 840 15,716
Kohlberg Capital Corp. .................... 145 1,455
LaBranche & Co., Inc.*..................... 460 2,939
Ladenburg Thalmann Financial Services,
Inc.*................................... 840 1,638
MCG Capital Corp. ......................... 620 4,749
MVC Capital, Inc. ......................... 210 3,268
NGP Capital Resources Co. ................. 150 2,420
optionsXpress Holdings, Inc. .............. 380 8,159
Patriot Capital Funding, Inc. ............. 180 1,832
PennantPark Investment Corp. .............. 170 1,260
Penson Worldwide, Inc.*.................... 110 1,197
Piper Jaffray Cos., Inc.*.................. 150 5,589
Prospect Capital Corp. .................... 200 2,968
Pzena Investment Management, Inc. ......... 50 608
Riskmetrics Group, Inc.*................... 180 3,177
Sanders Morris Harris Group, Inc. ......... 160 1,317
Stifel Financial Corp.*.................... 130 6,145
SWS Group, Inc. ........................... 190 2,493
Thomas Weisel Partners Group, Inc.*........ 190 1,252
TICC Capital Corp. ........................ 181 1,316
TradeStation Group, Inc.*.................. 250 2,333
U.S. Global Investors, Inc. -- Class A..... 100 1,297
W.P. Stewart & Co., Ltd. .................. 190 287
Waddell & Reed Financial, Inc. -- Class A.. 720 24,379
-----------
TOTAL CAPITAL MARKETS 178,711
-----------
CHEMICALS 2.5%
A. Schulman, Inc. ......................... 230 4,876
American Vanguard Corp. ................... 160 2,768
Arch Chemicals, Inc. ...................... 210 7,155
Balchem Corp. ............................. 150 3,429
Calgon Carbon Corp.*....................... 350 4,987
CF Industries Holdings, Inc. .............. 480 64,176
Ferro Corp. ............................... 370 6,505
Flotek Industries, Inc.*................... 200 3,744
GenTek, Inc.*.............................. 70 2,174
Georgia Gulf Corp. ........................ 300 1,803
H.B. Fuller Co. ........................... 500 11,540
Hercules, Inc. ............................ 1,000 18,800
Innophos Holdings, Inc. ................... 180 3,224
Innospec, Inc. ............................ 210 4,282
Koppers Holdings, Inc. .................... 150 7,266
Kronos Worldwide, Inc. .................... 20 585
Landec Corp.*.............................. 190 1,541
LSB Industries, Inc.*...................... 130 1,990
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 26
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Minerals Technologies, Inc. ............... 160 $10,838
NewMarket Corp. ........................... 120 7,792
NL Industries, Inc. ....................... 60 665
Olin Corp. ................................ 640 12,909
OM Group, Inc.*............................ 260 14,237
PolyOne Corp.*............................. 800 5,904
Rockwood Holdings, Inc.*................... 300 11,073
Sensient Technologies Corp. ............... 400 11,908
ShengdaTech, Inc.*......................... 250 1,930
Spartech Corp. ............................ 260 2,324
Stepan Co. ................................ 50 1,967
Terra Industries, Inc.*.................... 800 30,288
Tronox, Inc. .............................. 360 1,076
Valhi, Inc. ............................... 60 1,597
WR Grace & Co.*............................ 600 15,216
Zep, Inc. ................................. 190 2,816
Zoltek Cos., Inc.*......................... 210 5,601
-----------
TOTAL CHEMICALS 288,986
-----------
COMMERCIAL BANKS 4.7%
1st Source Corp. .......................... 120 2,378
AMCORE Financial, Inc. .................... 190 2,364
AmericanWest Bancorp....................... 150 547
Ameris Bancorp............................. 120 1,798
Bancfirst Corp. ........................... 70 3,061
Banco Latinoamericano de Exportaciones,
S.A. -- Class E......................... 230 4,324
Bancorp, Inc.*............................. 100 1,106
Bank of the Ozarks, Inc. .................. 110 2,744
Banner Corp. .............................. 130 2,808
Boston Private Financial Holdings, Inc. ... 320 2,976
Capital City Bank Group, Inc. ............. 100 2,625
Capital Corp. of the West.................. 80 548
Capitol Bancorp, Ltd. ..................... 120 2,063
Cascade Bancorp............................ 190 1,733
Cathay General Bancorp..................... 440 7,502
Centennial Bank Holdings, Inc.*............ 440 2,754
Center Financial Corp. .................... 90 937
Central Pacific Financial Corp. ........... 250 4,590
Chemical Financial Corp. .................. 210 5,099
Citizens Republic Bancorp, Inc. ........... 650 5,362
City Bank.................................. 120 2,174
City Holding Co. .......................... 140 5,821
CoBiz, Inc. ............................... 160 1,778
Columbia Banking System, Inc. ............. 150 4,062
Community Bancorp*......................... 90 999
Community Bank System, Inc. ............... 260 6,627
Community Trust Bancorp, Inc. ............. 130 3,908
CVB Financial Corp. ....................... 570 6,544
Enterprise Financial Services Corp. ....... 90 1,930
F.N.B. Corp. .............................. 740 11,440
First BanCorp. ............................ 800 8,232
First Bancorp.............................. 100 1,882
First Charter Corp. ....................... 300 9,114
First Commonwealth Financial Corp. ........ 640 7,968
First Community Bancorp.................... 210 4,513
First Community Bancshares, Inc. .......... 90 3,008
First Financial Bancorp.................... 290 3,805
First Financial Bankshares, Inc. .......... 180 8,098
First Financial Corp. ..................... 110 3,498
First Merchants Corp. ..................... 160 4,091
First Midwest Bancorp, Inc. ............... 430 10,978
First Regional Bancorp*.................... 70 1,039
First South Bancorp, Inc. ................. 70 1,564
First State Bancorp........................ 180 1,674
FirstMerit Corp. .......................... 690 14,159
Frontier Financial Corp. .................. 360 5,760
Glacier Bancorp, Inc. ..................... 450 9,261
Great Southern Bancorp, Inc. .............. 90 1,357
Greene Bankshares, Inc. ................... 100 2,003
Hancock Holding Co. ....................... 230 9,492
Hanmi Financial Corp. ..................... 330 2,307
Harleysville National Corp. ............... 260 3,760
Heartland Financial USA, Inc. ............. 110 2,475
Heritage Commerce Corp. ................... 120 2,122
Home Bancshares, Inc. ..................... 110 2,555
Horizon Financial Corp. ................... 110 1,351
IBERIABANK Corp. .......................... 100 4,820
Independent Bank Corp. .................... 120 3,508
Independent Bank Corp. .................... 190 1,516
Integra Bank Corp. ........................ 180 2,630
International Bancshares Corp. ............ 440 10,996
Investors Bancorp, Inc.*................... 440 6,455
Irwin Financial Corp. ..................... 160 934
Lakeland Bancorp, Inc. .................... 170 2,633
Lakeland Financial Corp. .................. 100 2,329
Macatawa Bank Corp. ....................... 130 1,478
MainSource Financial Group, Inc. .......... 160 2,370
MB Financial, Inc. ........................ 300 8,610
Midwest Banc Holdings, Inc. ............... 190 1,953
Nara Bancorp, Inc. ........................ 190 2,495
National Penn Bancshares, Inc. ............ 670 11,182
NBT Bancorp, Inc. ......................... 280 6,378
Northfield Bancorp, Inc.*.................. 170 1,773
Old National Bancorp....................... 570 9,753
Old Second Bancorp, Inc. .................. 120 2,944
Oriental Financial Group................... 180 3,384
Pacific Capital Bancorp.................... 410 8,356
Park National Corp. ....................... 100 7,601
Peoples Bancorp, Inc. ..................... 90 2,184
Pinnacle Financial Partners, Inc.*......... 190 5,149
Preferred Bank............................. 80 937
PrivateBancorp, Inc. ...................... 160 5,438
Prosperity Bancshares, Inc. ............... 310 9,601
Provident Bankshares Corp. ................ 280 3,587
Renasant Corp. ............................ 180 4,171
Republic Bancorp, Inc. .................... 80 1,850
Royal Bancshares of Pennsylvania,
Inc. -- Class A......................... 50 543
S&T Bancorp, Inc. ......................... 210 7,155
S.Y. Bancorp, Inc. ........................ 100 2,463
Sandy Spring Bancorp, Inc. ................ 140 3,570
Santander Bancorp.......................... 40 452
SCBT Financial Corp. ...................... 90 3,057
Seacoast Banking Corp. of Florida.......... 130 1,366
Security Bank Corp. ....................... 180 1,382
Sierra Bancorp............................. 70 1,513
Signature Bank*............................ 260 6,859
Simmons First National Corp. .............. 120 3,841
South Financial Group, Inc. ............... 640 3,866
Southside Bancshares, Inc. ................ 101 2,425
Southwest Bancorp, Inc. ................... 120 2,112
Sterling Bancorp........................... 160 2,626
Sterling Bancshares, Inc. ................. 640 6,650
Sterling Financial Corp. .................. 440 5,372
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 27
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Suffolk Bancorp............................ 90 $2,914
Sun Bancorp, Inc.*......................... 140 1,623
Superior Bancorp*.......................... 90 1,597
Susquehanna Bancshares, Inc. .............. 730 14,520
SVB Financial Group*....................... 280 13,625
Taylor Capital Group, Inc. ................ 50 746
Texas Capital Bancshares, Inc.*............ 200 3,690
Tompkins Financial Corp. .................. 60 2,902
Trico Bancshares........................... 120 2,041
Trustmark Corp. ........................... 420 9,148
UCBH Holdings, Inc. ....................... 860 6,261
UMB Financial Corp. ....................... 270 13,403
Umpqua Holdings Corp. ..................... 530 7,817
Union Bankshares Corp. .................... 110 2,108
United Bankshares, Inc. ................... 330 9,600
United Community Banks, Inc. .............. 360 4,943
United Security Bancshares Co. ............ 70 998
Univest Corp. of Pennsylvania.............. 110 2,818
Virginia Commerce Bancorp, Inc.*........... 160 1,128
W Holding Co., Inc. ....................... 980 1,029
Washington Trust Bancorp, Inc. ............ 100 2,418
WesBanco, Inc. ............................ 220 4,732
West Coast Bancorp......................... 140 1,807
Westamerica Bancorp........................ 260 15,194
Western Alliance Bancorp*.................. 140 1,788
Wilshire Bancorp, Inc. .................... 150 1,236
Wintrust Financial Corp. .................. 210 6,661
-----------
TOTAL COMMERCIAL BANKS 557,682
-----------
COMMERCIAL SERVICES & SUPPLIES 3.7%
ABM Industries, Inc. ...................... 370 7,748
ACCO Brands Corp.*......................... 460 6,403
Administaff, Inc. ......................... 190 4,976
Advisory Board Co.*........................ 160 7,459
American Ecology Corp. .................... 140 3,721
American Reprographics Co.*................ 260 4,126
AMREP Corp. ............................... 10 522
Arrowhead Research Corp.*.................. 290 777
Barrett Business Services, Inc. ........... 60 720
Bowne & Co., Inc. ......................... 240 3,994
Casella Waste Systems, Inc. -- Class A*.... 200 2,132
CBIZ, Inc.*................................ 410 3,637
CDI Corp. ................................. 110 2,992
Cenveo, Inc.*.............................. 460 4,724
Clean Harbors, Inc.*....................... 140 9,236
Comfort Systems USA, Inc. ................. 350 4,760
CompX International, Inc. ................. 10 63
COMSYS IT Partners, Inc.*.................. 150 1,227
Consolidated Graphics, Inc.*............... 70 4,072
Cornell Cos., Inc.*........................ 90 2,045
CoStar Group, Inc.*........................ 170 8,151
Courier Corp. ............................. 90 2,119
CRA International, Inc.*................... 90 3,103
Deluxe Corp. .............................. 450 9,567
Diamond Management & Technology
Consultants, Inc. ...................... 230 1,415
Duff & Phelps Corp.*....................... 80 1,446
EnergySolutions, Inc. ..................... 260 5,681
EnerNOC, Inc.*............................. 40 617
Ennis, Inc. ............................... 220 3,727
Exponent, Inc.*............................ 130 4,386
First Advantage Corp.*..................... 60 1,231
FTI Consulting, Inc.*...................... 410 26,240
Fuel Tech, Inc.*........................... 150 3,855
G&K Services, Inc. ........................ 170 5,360
Geo Group, Inc.*........................... 430 11,373
GeoEye, Inc.*.............................. 150 3,454
Healthcare Services Group, Inc. ........... 360 5,494
Heidrick & Struggles International, Inc. .. 150 4,489
Herman Miller, Inc. ....................... 490 11,432
Hudson Highland Group, Inc.*............... 220 1,951
Huron Consulting Group, Inc.*.............. 160 6,698
ICT Group, Inc.*........................... 70 765
IHS, Inc.*................................. 290 19,154
IKON Office Solutions, Inc. ............... 690 7,555
Innerworkings, Inc.*....................... 200 2,688
Interface, Inc. ........................... 470 6,035
Kelly Services, Inc. ...................... 200 4,450
Kenexa Corp.*.............................. 200 3,498
Kforce, Inc.*.............................. 280 2,304
Kimball International, Inc. ............... 230 2,362
Knoll, Inc. ............................... 430 5,599
Korn/Ferry International*.................. 410 7,651
Layne Christensen Co.*..................... 140 5,974
LECG Corp.*................................ 220 2,286
M&F Worldwide Corp.*....................... 100 3,440
McGrath Rentcorp........................... 220 5,683
Mine Safety Appliances Co. ................ 240 8,921
Mobile Mini, Inc.*......................... 310 6,587
Multi-Color Corp. ......................... 70 1,436
Navigant Consulting, Inc.*................. 410 8,249
Odyssey Marine Exploration, Inc.*.......... 350 1,691
On Assignment, Inc.*....................... 300 2,109
PeopleSupport, Inc.*....................... 190 1,879
PHH Corp.*................................. 460 9,030
Pike Electric Corp.*....................... 150 2,406
Protection One, Inc.*...................... 60 618
Resources Connection, Inc. ................ 390 7,882
Rollins, Inc. ............................. 370 5,894
RSC Holdings, Inc.*........................ 180 1,663
Schawk, Inc. .............................. 130 2,084
School Specialty, Inc.*.................... 170 5,005
Spherion Corp.*............................ 490 2,421
Standard Parking Corp.*.................... 80 1,714
Standard Register Co. ..................... 150 1,422
Team, Inc.*................................ 140 4,162
TeleTech Holdings, Inc.*................... 360 8,255
Tetra Tech, Inc.*.......................... 500 10,565
TrueBlue, Inc.*............................ 380 4,837
United Stationers, Inc.*................... 200 8,818
Viad Corp. ................................ 180 5,663
Volt Information Sciences, Inc.*........... 110 1,467
Waste Connections, Inc.*................... 590 18,921
Waste Industries USA, Inc. ................ 40 1,510
Waste Services, Inc.*...................... 170 1,328
Watson Wyatt Worldwide, Inc. .............. 370 21,689
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 434,793
-----------
COMMUNICATIONS EQUIPMENT 1.8%
3Com Corp.*................................ 3,350 8,006
Acme Packet, Inc.*......................... 190 1,739
Adtran, Inc. .............................. 470 11,120
Airvana, Inc.*............................. 70 452
Anaren, Inc.*.............................. 130 1,751
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 28
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Arris Group, Inc.*......................... 1,150 $9,315
Aruba Networks, Inc.*...................... 70 417
Avanex Corp.*.............................. 1,680 1,445
Avocent Corp.*............................. 390 7,609
Bel Fuse, Inc. ............................ 100 2,607
BigBand Networks, Inc.*.................... 110 810
Black Box Corp. ........................... 150 4,459
Blue Coat Systems, Inc.*................... 280 5,911
Comtech Group, Inc.*....................... 170 2,213
Comtech Telecommunications Corp.*.......... 200 7,746
Digi International, Inc.*.................. 220 1,813
Ditech Networks, Inc.*..................... 220 627
Dycom Industries, Inc.*.................... 350 5,033
EMS Technologies, Inc.*.................... 130 3,362
Extreme Networks*.......................... 1,020 3,091
Finisar Corp.*............................. 2,310 3,118
Foundry Networks, Inc.*.................... 1,260 16,040
Harmonic, Inc.*............................ 800 6,616
Harris Stratex Networks, Inc.*............. 220 2,088
Hughes Communications, Inc.*............... 60 3,240
Infinera Corp.*............................ 150 1,899
InterDigital, Inc.*........................ 400 8,108
Ixia*...................................... 380 2,694
Loral Space & Communications, Ltd.*........ 100 2,159
MasTec, Inc.*.............................. 370 3,030
MRV Communications, Inc.*.................. 1,360 2,135
NETGEAR, Inc.*............................. 300 4,863
Network Equipment Technologies, Inc.*...... 250 1,625
Neutral Tandem, Inc.*...................... 60 1,154
Nextwave Wireless, Inc.*................... 260 1,661
Oplink Communications, Inc.*............... 180 1,730
OpNext, Inc.*.............................. 160 944
Optium Corp.*.............................. 110 855
Orbcomm, Inc.*............................. 230 1,355
Packeteer, Inc.*........................... 310 2,186
Plantronics, Inc. ......................... 410 10,213
Polycom, Inc.*............................. 790 17,696
Powerwave Technologies, Inc.*.............. 1,120 3,058
SeaChange International, Inc.*............. 250 1,790
ShoreTel, Inc.*............................ 80 370
Sonus Networks, Inc.*...................... 2,300 9,223
Starent Networks Corp.*.................... 110 1,740
Sycamore Networks, Inc.*................... 1,590 5,120
Symmetricom, Inc.*......................... 400 1,716
Tekelec*................................... 520 7,654
Utstarcom, Inc.*........................... 910 2,958
ViaSat, Inc.*.............................. 210 4,641
-----------
TOTAL COMMUNICATIONS EQUIPMENT 213,205
-----------
COMPUTERS & PERIPHERALS 0.8%
3PAR, Inc.*................................ 60 482
Adaptec, Inc.*............................. 1,020 2,846
Avid Technology, Inc.*..................... 330 6,887
Compellent Technologies, Inc.*............. 60 765
Cray, Inc.*................................ 280 1,744
Data Domain, Inc.*......................... 80 1,740
Electronics for Imaging, Inc.*............. 460 6,633
Emulex Corp.*.............................. 740 9,687
Hutchinson Technology, Inc.*............... 220 3,111
Hypercom Corp.*............................ 460 1,964
Imation Corp. ............................. 280 6,563
Immersion Corp.*........................... 260 2,935
Intermec, Inc.*............................ 520 10,983
Intevac, Inc.*............................. 180 2,390
Isilon Systems, Inc.*...................... 70 339
Netezza Corp.*............................. 90 954
Novatel Wireless, Inc.*.................... 280 2,498
Palm, Inc. ................................ 890 5,126
Quantum Corp.*............................. 1,690 2,958
Rackable Systems, Inc.*.................... 250 2,750
Rimage Corp.*.............................. 90 1,608
Silicon Graphics, Inc.*.................... 60 648
STEC, Inc.*................................ 280 2,570
Stratasys, Inc.*........................... 180 3,499
Super Micro Computer, Inc.*................ 80 597
Synaptics, Inc.*........................... 210 7,128
-----------
TOTAL COMPUTERS & PERIPHERALS 89,405
-----------
CONSTRUCTION & ENGINEERING 0.5%
Aecom Technology Corp.*.................... 370 10,160
EMCOR Group, Inc.*......................... 550 13,783
Granite Construction, Inc. ................ 290 9,947
Great Lakes Dredge & Dock Corp. ........... 100 598
Insituform Technologies, Inc. -- Class A*.. 230 3,891
Integrated Electrical Services, Inc.*...... 120 2,008
Michael Baker Corp.*....................... 60 1,264
Northwest Pipe Co.*........................ 80 3,402
Perini Corp.*.............................. 230 8,321
-----------
TOTAL CONSTRUCTION & ENGINEERING 53,374
-----------
CONSTRUCTION MATERIALS 0.2%
Headwaters, Inc.*.......................... 340 3,886
Texas Industries, Inc. .................... 240 18,579
U.S. Concrete, Inc.*....................... 290 957
-----------
TOTAL CONSTRUCTION MATERIALS 23,422
-----------
CONSUMER FINANCE 0.3%
Advance America, Cash Advance Centers,
Inc. ................................... 530 4,669
Advanta Corp. ............................. 320 2,810
Cardtronics, Inc.*......................... 100 829
Cash America International, Inc. .......... 260 10,605
CompuCredit Corp.*......................... 160 1,293
Credit Acceptance Corp.*................... 40 770
Dollar Financial Corp.*.................... 140 3,021
Ezcorp, Inc.*.............................. 320 3,885
First Cash Financial Services, Inc.*....... 210 3,116
Nelnet, Inc. -- Class A.................... 150 1,919
QC Holdings, Inc. ......................... 70 614
World Acceptance Corp.*.................... 150 5,907
-----------
TOTAL CONSUMER FINANCE 39,438
-----------
CONTAINERS & PACKAGING 0.6%
AEP Industries, Inc.*...................... 50 1,411
AptarGroup, Inc. .......................... 600 26,490
Boise, Inc.*............................... 360 1,505
Chesapeake Corp.*.......................... 170 745
Graphic Packaging Holding Co.*............. 590 1,652
Greif, Inc. ............................... 290 18,734
Myers Industries, Inc. .................... 240 3,019
Rock-Tenn Co. ............................. 290 9,840
Silgan Holdings, Inc. ..................... 210 11,189
-----------
TOTAL CONTAINERS & PACKAGING 74,585
-----------
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 29
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
DISTRIBUTORS 0.2%
Audiovox Corp. -- Class A*................. 140 $1,529
Building Materials Holding Corp. .......... 250 1,165
Core-Mark Holding Co., Inc.*............... 80 2,293
LKQ Corp.*................................. 970 21,107
Source Interlink Cos., Inc.*............... 300 423
-----------
TOTAL DISTRIBUTORS 26,517
-----------
DIVERSIFIED CONSUMER SERVICES 1.3%
American Public Education, Inc.*........... 50 1,611
Bright Horizons Family Solutions, Inc.*.... 230 10,904
Capella Education Co.*..................... 90 5,804
Coinstar, Inc.*............................ 240 7,654
Corinthian Colleges, Inc.*................. 750 8,512
CPI Corp. ................................. 40 754
DeVry, Inc. ............................... 520 29,640
INVESTools, Inc.*.......................... 450 5,215
Jackson Hewitt Tax Service, Inc. .......... 240 3,578
K12, Inc.*................................. 50 1,274
Lincoln Educational Services Corp.*........ 40 467
Matthews International Corp. -- Class A.... 270 13,349
Pre-Paid Legal Services, Inc.*............. 70 3,062
Regis Corp. ............................... 380 11,096
Sotheby's.................................. 570 15,789
Steiner Leisure, Ltd.*..................... 140 4,633
Stewart Enterprises, Inc. ................. 820 5,601
Strayer Education, Inc. ................... 130 24,140
Universal Technical Institute, Inc.*....... 180 2,041
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 155,124
-----------
DIVERSIFIED FINANCIAL SERVICES 0.3%
Ampal-American Israel Corp. -- Class A*.... 180 1,111
Asset Acceptance Capital Corp. ............ 130 1,566
Asta Funding, Inc. ........................ 100 1,427
Compass Diversified Holdings............... 180 2,207
Encore Capital Group, Inc.*................ 140 938
Financial Federal Corp. ................... 220 5,137
Interactive Brokers Group, Inc.*........... 340 10,734
MarketAxess Holdings, Inc.*................ 270 2,373
NewStar Financial, Inc.*................... 160 861
Pico Holdings, Inc.*....................... 130 4,592
Portfolio Recovery Associates, Inc. ....... 130 5,721
Primus Guaranty, Ltd.*..................... 390 1,739
Resource America, Inc. .................... 110 958
-----------
TOTAL DIVERSIFIED FINANCIAL SERVICES 39,364
-----------
DIVERSIFIED TELECOMMUNICATION SERVICES 0.9%
Alaska Communications Systems Group,
Inc. ................................... 370 4,137
Atlantic Tele-Network, Inc. ............... 80 2,490
Cbeyond, Inc.*............................. 180 3,553
Cincinnati Bell, Inc.*..................... 2,130 9,883
Cogent Communications Group, Inc.*......... 400 8,404
Consolidated Communications Holdings,
Inc. ................................... 200 2,860
Fairpoint Communications, Inc. ............ 780 7,184
General Communication, Inc. -- Class A*.... 460 2,857
Global Crossing Ltd.*...................... 310 5,183
Globalstar, Inc.*.......................... 170 551
Hungarian Telephone & Cable Corp.*......... 30 484
iBasis, Inc. .............................. 290 925
IDT Corp. -- Class B*...................... 390 1,494
Iowa Telecommunications Services, Inc. .... 270 4,676
NTELOS Holdings Corp. ..................... 240 6,211
PAETEC Holding Corp.*...................... 640 4,934
Premiere Global Services, Inc.*............ 530 7,696
Shenandoah Telecom Co. .................... 200 2,712
SureWest Communications.................... 120 1,669
Time Warner Telecom, Inc.*................. 1,250 24,500
Vonage Holdings Corp.*..................... 560 1,103
-----------
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES 103,506
-----------
ELECTRIC UTILITIES 1.3%
Allete, Inc. .............................. 220 9,189
Aquila, Inc.*.............................. 3,230 11,628
Central Vermont Public Service Corp. ...... 90 2,097
Cleco Corp. ............................... 510 12,245
El Paso Electric Co.*...................... 390 8,802
Empire District Electric Co. .............. 290 6,041
IDACORP, Inc. ............................. 380 12,327
ITC Holdings Corp. ........................ 420 23,428
MGE Energy, Inc. .......................... 180 6,262
NorthWestern Corp. ........................ 340 8,439
Otter Tail Corp. .......................... 260 9,641
Portland General Electric Co. ............. 260 6,240
UIL Holdings Corp. ........................ 220 6,886
Unisource Energy Corp. .................... 300 9,372
Westar Energy, Inc. ....................... 860 19,943
-----------
TOTAL ELECTRIC UTILITIES 152,540
-----------
ELECTRICAL EQUIPMENT 1.6%
Acuity Brands, Inc. ....................... 350 16,744
American Superconductor Corp.*............. 350 8,848
AO Smith Corp. ............................ 180 5,569
AZZ, Inc.*................................. 100 2,668
Baldor Electric Co. ....................... 390 12,636
Belden CDT, Inc. .......................... 390 13,159
Brady Corp. ............................... 430 14,599
Coleman Cable, Inc.*....................... 70 844
Encore Wire Corp. ......................... 200 4,520
Energy Conversion Devices, Inc.*........... 340 11,081
EnerSys*................................... 180 4,212
Evergreen Solar, Inc.*..................... 870 7,473
Franklin Electric Co., Inc. ............... 170 6,582
FuelCell Energy, Inc.*..................... 570 5,033
GrafTech International, Ltd.*.............. 900 17,685
II-VI, Inc.*............................... 200 7,428
LSI Industries, Inc. ...................... 160 1,754
Medis Technologies, Ltd.*.................. 210 1,762
Orion Energy Systems, Inc.*................ 80 894
Polypore International, Inc.*.............. 130 3,043
Powell Industries, Inc.*................... 70 2,945
Power-One, Inc.*........................... 600 1,794
Preformed Line Products Co. ............... 20 986
Regal-Beloit Corp. ........................ 280 10,385
Superior Essex, Inc.*...................... 180 5,351
Vicor Corp. ............................... 170 2,050
Woodward Governor Co. ..................... 520 18,268
-----------
TOTAL ELECTRICAL EQUIPMENT 188,313
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS 2.2%
Acacia Research -- Acacia Technologies*.... 260 1,383
Agilysys, Inc. ............................ 200 2,192
Anixter International, Inc.*............... 270 15,382
Benchmark Electronics, Inc.*............... 630 11,201
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 30
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Brightpoint, Inc.*......................... 440 $4,030
Checkpoint Systems, Inc.*.................. 340 8,816
Cogent, Inc.*.............................. 380 3,545
Cognex Corp. .............................. 380 9,576
Comverge, Inc.*............................ 60 787
CPI International, Inc.*................... 60 687
CTS Corp. ................................. 290 3,263
Daktronics, Inc. .......................... 270 3,993
DTS, Inc.*................................. 160 4,720
Echelon Corp.*............................. 260 2,928
Electro Scientific Industries, Inc.*....... 250 4,102
Excel Technology, Inc.*.................... 100 2,359
FARO Technologies, Inc.*................... 140 4,934
FLIR Systems, Inc.*........................ 1,140 39,136
Gerber Scientific, Inc.*................... 200 1,854
ICx Technologies, Inc.*.................... 40 242
Insight Enterprises, Inc.*................. 420 5,065
IPG Photonics Corp.*....................... 90 1,506
Itron, Inc.*............................... 260 24,201
KEMET Corp.*............................... 720 2,930
L-1 Identity Solutions, Inc.*.............. 550 7,925
Littelfuse, Inc.*.......................... 190 6,984
LoJack Corp.*.............................. 160 1,582
Measurement Specialties, Inc.*............. 120 1,943
Mercury Computer Systems, Inc.*............ 190 1,524
Methode Electronics, Inc. ................. 310 3,360
MTS Systems Corp. ......................... 150 5,157
Multi-Fineline Electronix, Inc.*........... 70 1,323
Newport Corp.*............................. 280 3,223
OSI Systems, Inc.*......................... 130 3,179
Park Electrochemical Corp. ................ 170 4,607
PC Connection, Inc.*....................... 80 598
Plexus Corp.*.............................. 400 9,636
Radisys Corp.*............................. 190 1,792
Rofin-Sinar Technologies, Inc.*............ 270 10,282
Rogers Corp.*.............................. 150 5,136
Scansource, Inc.*.......................... 220 5,493
Smart Modular Technologies WWH, Inc.*...... 430 2,593
SYNNEX Corp.*.............................. 140 3,343
Technitrol, Inc. .......................... 350 7,350
TTM Technologies, Inc.*.................... 360 4,792
Universal Display Corp.*................... 230 3,402
X-Rite, Inc.*.............................. 250 630
Zygo Corp.*................................ 130 1,516
-----------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 256,202
-----------
ENERGY EQUIPMENT & SERVICES 2.6%
Allis-Chalmers Energy, Inc.*............... 220 3,527
Atwood Oceanics, Inc.*..................... 240 24,166
Basic Energy Services, Inc.*............... 350 8,120
Bristow Group, Inc.*....................... 170 8,968
Bronco Drilling Co., Inc.*................. 220 3,784
Cal Dive International, Inc.*.............. 370 4,510
CARBO Ceramics, Inc. ...................... 170 8,080
Complete Production Services, Inc.*........ 370 9,994
Dawson Geophysical Co.*.................... 70 5,064
Dril-Quip, Inc.*........................... 230 13,147
ENGlobal Corp.*............................ 140 1,407
Exterran Holdings, Inc.*................... 520 34,731
Geokinetics, Inc.*......................... 60 1,139
Grey Wolf, Inc.*........................... 1,590 9,969
Gulf Island Fabrication, Inc. ............. 90 3,559
Gulfmark Offshore, Inc.*................... 200 11,960
Hercules Offshore, Inc.*................... 720 18,979
Hornbeck Offshore Services, Inc.*.......... 200 9,974
ION Geophysical Corp.*..................... 710 11,310
Lufkin Industries, Inc. ................... 130 9,809
Matrix Service Co.*........................ 230 4,625
NATCO Group, Inc.*......................... 160 8,096
Newpark Resources, Inc.*................... 770 4,227
Oil States International, Inc.*............ 420 21,025
OYO Geospace Corp.*........................ 30 1,452
Parker Drilling Co.*....................... 960 7,699
PHI, Inc.*................................. 120 4,508
Pioneer Drilling Co.*...................... 430 7,022
RPC, Inc. ................................. 280 3,576
SulphCo, Inc.*............................. 400 1,408
Superior Well Services, Inc.*.............. 140 3,333
T-3 Energy Services, Inc.*................. 50 2,640
Trico Marine Services, Inc.*............... 100 3,769
Union Drilling, Inc.*...................... 120 2,029
W-H Energy Services, Inc.*................. 260 20,095
Willbros Group, Inc.*...................... 320 11,549
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 309,250
-----------
FOOD & STAPLES RETAILING 0.8%
Andersons, Inc. ........................... 130 5,908
Arden Group, Inc. -- Class A............... 10 1,340
Casey's General Stores, Inc. .............. 440 9,737
Great Atlantic & Pacific Tea Co., Inc.*.... 240 6,605
Ingles Markets, Inc. ...................... 110 2,510
Longs Drug Stores Corp. ................... 280 11,217
Nash Finch Co. ............................ 120 4,390
Pantry, Inc.*.............................. 200 2,170
Performance Food Group Co.*................ 300 10,038
PriceSmart, Inc. .......................... 120 3,426
Ruddick Corp. ............................. 350 13,545
Spartan Stores, Inc. ...................... 190 3,967
United Natural Foods, Inc.*................ 370 7,326
Village Super Market -- Class A............ 30 1,413
Weis Markets, Inc. ........................ 110 3,378
Winn-Dixie Stores, Inc.*................... 290 5,142
-----------
TOTAL FOOD & STAPLES RETAILING 92,112
-----------
FOOD PRODUCTS 1.1%
Alico, Inc. ............................... 30 1,198
American Dairy, Inc.*...................... 60 696
Cal-Maine Foods, Inc. ..................... 110 3,251
Chiquita Brands International, Inc.*....... 370 8,417
Darling International, Inc.*............... 700 10,689
Farmer Brothers Co. ....................... 60 1,483
Flowers Foods, Inc. ....................... 660 17,087
Fresh Del Monte Produce, Inc.*............. 260 8,239
Green Mountain Coffee Roasters, Inc.*...... 150 4,830
Hain Celestial Group, Inc.*................ 340 8,391
Imperial Sugar Co. ........................ 100 1,577
J&J Snack Foods Corp. ..................... 120 3,437
Lancaster Colony Corp. .................... 180 6,874
Lance, Inc. ............................... 270 5,659
Maui Land & Pineapple Co., Inc.*........... 40 1,260
Pilgrim's Pride Corp. ..................... 350 8,459
Ralcorp Holdings, Inc.*.................... 220 13,429
Reddy Ice Holdings, Inc. .................. 190 2,516
Sanderson Farms, Inc. ..................... 150 6,251
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 31
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Synutra International, Inc.*............... 40 $1,328
Tootsie Roll Industries, Inc. ............. 320 7,786
TreeHouse Foods, Inc.*..................... 270 6,121
-----------
TOTAL FOOD PRODUCTS 128,978
-----------
GAS UTILITIES 0.8%
EnergySouth, Inc. ......................... 60 3,243
Laclede Group, Inc. ....................... 190 7,186
New Jersey Resources Corp. ................ 360 11,466
Nicor, Inc. ............................... 390 13,697
Northwest Natural Gas Co. ................. 230 10,320
Piedmont Natural Gas Co., Inc. ............ 640 16,826
South Jersey Industries, Inc. ............. 250 9,127
Southwest Gas Corp. ....................... 360 10,393
WGL Holdings, Inc. ........................ 420 13,776
-----------
TOTAL GAS UTILITIES 96,034
-----------
HEALTH CARE EQUIPMENT & SUPPLIES 3.1%
Abaxis, Inc.*.............................. 180 4,586
Abiomed, Inc.*............................. 250 3,648
Accuray, Inc.*............................. 140 1,096
Align Technology, Inc.*.................... 510 6,263
American Medical Systems Holdings, Inc.*... 620 8,742
Analogic Corp. ............................ 110 6,335
Angiodynamics, Inc.*....................... 180 2,660
Arthrocare Corp.*.......................... 240 10,815
Aspect Medical Systems, Inc.*.............. 130 868
Cantel Medical Corp.*...................... 100 955
Conceptus, Inc.*........................... 250 4,505
CONMED Corp.*.............................. 240 6,125
CryoLife, Inc.*............................ 210 2,230
Cutera, Inc.*.............................. 110 1,463
Cyberonics, Inc.*.......................... 200 3,160
Cynosure, Inc. -- Class A*................. 70 1,821
Datascope Corp. ........................... 110 4,121
ev3, Inc.*................................. 400 3,324
Greatbatch, Inc.*.......................... 190 3,454
Haemonetics Corp.*......................... 230 13,163
Hansen Medical, Inc.*...................... 80 1,396
Hologic, Inc.*............................. 2,110 61,591
I-Flow Corp.*.............................. 180 2,403
ICU Medical, Inc.*......................... 110 2,763
Immucor, Inc.*............................. 590 15,918
Insulet Corp.*............................. 70 1,282
Integra LifeSciences Holdings Corp.*....... 160 6,779
Invacare Corp. ............................ 250 4,510
Inverness Medical Innovations, Inc.*....... 650 24,050
Kensey Nash Corp.*......................... 100 2,916
Masimo Corp.*.............................. 120 3,498
Medical Action Industries, Inc.*........... 120 1,967
Mentor Corp. .............................. 290 8,488
Meridian Bioscience, Inc. ................. 340 9,156
Merit Medical Systems, Inc.*............... 240 3,530
Micrus Endovascular Corp.*................. 130 1,479
Minrad International, Inc.*................ 410 951
Natus Medical, Inc.*....................... 190 3,737
Northstar Neuroscience, Inc.*.............. 170 306
NuVasive, Inc.*............................ 300 11,445
NxStage Medical, Inc.*..................... 170 983
OraSure Technologies, Inc.*................ 400 2,584
Orthofix International NV*................. 140 4,306
Palomar Medical Technologies, Inc.*........ 160 2,256
Quidel Corp.*.............................. 250 4,003
RTI Biologics, Inc.*....................... 390 3,955
Sirona Dental Systems, Inc.*............... 140 3,748
Sonic Innovations, Inc.*................... 230 984
SonoSite, Inc.*............................ 140 4,465
Spectranetics Corp.*....................... 270 2,905
Stereotaxis, Inc.*......................... 230 1,566
STERIS Corp. .............................. 560 15,518
SurModics, Inc.*........................... 130 5,781
Symmetry Medical, Inc.*.................... 300 4,209
Thoratec Corp.*............................ 460 7,356
TomoTherapy, Inc.*......................... 100 976
Trans1, Inc.*.............................. 60 783
Vital Signs, Inc. ......................... 90 4,710
Volcano Corp.*............................. 250 2,958
West Pharmaceutical Services, Inc. ........ 280 13,135
Wright Medical Group, Inc.*................ 310 8,655
Zoll Medical Corp.*........................ 180 6,008
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 359,343
-----------
HEALTH CARE PROVIDERS & SERVICES 2.3%
Air Methods Corp.*......................... 90 3,609
Alliance Imaging, Inc.*.................... 220 1,793
Amedisys, Inc.*............................ 220 11,396
American Dental Partners, Inc.*............ 110 1,276
AMERIGROUP Corp.*.......................... 450 11,695
AMN Healthcare Services, Inc.*............. 300 4,377
Amsurg Corp.*.............................. 260 6,640
Animal Health International, Inc.*......... 100 879
Apria Healthcare Group, Inc.*.............. 380 6,696
Assisted Living Concepts, Inc.*............ 480 3,509
athenahealth, Inc.*........................ 60 1,500
Bio-Reference Labs, Inc.*.................. 100 2,518
BMP Sunstone Corp.*........................ 260 1,843
Capital Senior Living Corp.*............... 200 1,702
Centene Corp.*............................. 380 6,981
Chemed Corp. .............................. 210 7,161
Corvel Corp.*.............................. 70 2,303
Cross Country Healthcare, Inc.*............ 280 3,349
Emergency Medical Services Corp. -- Class
A*...................................... 80 1,806
Emeritus Corp.*............................ 110 2,711
Ensign Group, Inc. ........................ 40 384
Genoptix, Inc.*............................ 50 1,372
Gentiva Health Services, Inc.*............. 240 5,218
HealthExtras, Inc.*........................ 270 7,619
HEALTHSOUTH Corp.*......................... 680 13,376
Healthspring, Inc.*........................ 410 6,904
Healthways, Inc.*.......................... 300 10,959
HMS Holdings Corp.*........................ 190 4,896
Hythiam, Inc.*............................. 320 867
inVentiv Health, Inc.*..................... 270 8,027
IPC The Hospitalist Co., Inc.*............. 50 1,174
Kindred Healthcare, Inc.*.................. 250 5,932
Landauer, Inc. ............................ 80 4,260
LCA-Vision, Inc. .......................... 160 1,618
LHC Group, Inc.*........................... 120 1,872
Magellan Health Services, Inc.*............ 340 13,121
Matria Healthcare, Inc.*................... 180 4,590
MedCath Corp.*............................. 90 1,670
Molina Healthcare, Inc.*................... 120 2,980
MWI Veterinary Supply, Inc.*............... 70 2,413
National Healthcare Corp. ................. 60 3,005
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 32
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Nighthawk Radiology Holdings, Inc.*........ 180 $1,350
Odyssey HealthCare, Inc.*.................. 290 2,654
Owens & Minor, Inc. ....................... 350 15,862
PharMerica Corp.*.......................... 230 3,917
Providence Service Corp.*.................. 100 2,814
PSS World Medical, Inc.*................... 550 9,058
Psychiatric Solutions, Inc.*............... 470 16,314
RehabCare Group, Inc.*..................... 150 2,550
Res-Care, Inc.*............................ 210 3,421
Skilled Healthcare Group, Inc.*............ 190 2,299
Sun Healthcare Group, Inc.*................ 370 4,865
Sunrise Senior Living, Inc.*............... 390 8,365
Triple-S Management Corp. -- Class B*...... 120 2,189
Universal American Corp.*.................. 420 4,507
Virtual Radiologic Corp.*.................. 40 559
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 266,725
-----------
HEALTH CARE TECHNOLOGY 0.3%
Allscripts Healthcare Solutions, Inc.*..... 480 5,357
Computer Programs & Systems, Inc. ......... 80 1,522
Eclipsys Corp.*............................ 390 8,100
MedAssets, Inc.*........................... 130 1,951
Omnicell, Inc.*............................ 290 3,486
Phase Forward, Inc.*....................... 350 6,440
TriZetto Group, Inc.*...................... 370 7,788
Vital Images, Inc.*........................ 150 2,265
-----------
TOTAL HEALTH CARE TECHNOLOGY 36,909
-----------
HOLDING COMPANIES 0.2%
Alternative Asset Management Acquisition
Corp.*.................................. 360 3,323
Energy Infrastructure Acquisition Corp.*... 190 1,898
Heckmann Corp.*............................ 460 3,395
Hicks Acquisition Co. I, Inc.*............. 480 4,382
Marathon Acquisition Corp.*................ 330 2,554
NRDC Acquisition Corp.*.................... 360 3,312
NTR Acquisition Co.*....................... 210 2,018
Triplecrown Acquisition Corp.*............. 410 3,711
-----------
TOTAL HOLDING COMPANIES 24,593
-----------
HOTELS, RESTAURANTS & LEISURE 2.2%
AFC Enterprises, Inc.*..................... 240 2,484
Ambassadors Group, Inc. ................... 140 2,724
Ambassadors International, Inc. ........... 80 403
Ameristar Casinos, Inc. ................... 220 3,777
Bally Technologies, Inc.*.................. 460 15,497
Benihana, Inc. -- Class A*................. 110 1,142
BJ's Restaurants, Inc.*.................... 150 2,091
Bluegreen Corp.*........................... 180 1,265
Bob Evans Farms, Inc. ..................... 270 7,579
Buffalo Wild Wings, Inc.*.................. 130 3,997
California Pizza Kitchen, Inc.*............ 220 3,430
Carrols Restaurant Group, Inc.*............ 90 725
CBRL Group, Inc. .......................... 190 7,019
CEC Entertainment, Inc.*................... 200 7,440
Chipotle Mexican Grill, Inc.*.............. 280 23,792
Churchill Downs, Inc. ..................... 80 4,084
CKE Restaurants, Inc. ..................... 490 5,140
Denny's Corp.*............................. 810 2,552
Domino's Pizza, Inc. ...................... 380 5,046
Dover Downs Gaming & Entertainment, Inc. .. 130 1,050
Gaylord Entertainment Co.*................. 350 10,367
Great Wolf Resorts, Inc.*.................. 260 1,589
IHOP Corp. ................................ 150 6,996
Isle of Capri Casinos, Inc.*............... 140 944
Jack in the Box, Inc.*..................... 510 13,642
Jamba, Inc.*............................... 450 1,130
Krispy Kreme Doughnuts, Inc.*.............. 560 1,730
Landry's Restaurants, Inc. ................ 110 1,757
Life Time Fitness, Inc.*................... 290 10,541
Lodgian, Inc.*............................. 150 1,457
Magna Entertainment Corp. -- Class A*...... 350 123
Marcus Corp. .............................. 180 2,986
McCormick & Schmick's Seafood Restaurants,
Inc.*................................... 130 1,564
Monarch Casino & Resort, Inc.*............. 100 1,324
Morgans Hotel Group Co.*................... 180 2,518
Morton's Restaurant Group, Inc.*........... 90 719
MTR Gaming Group, Inc.*.................... 180 1,103
Multimedia Games, Inc.*.................... 200 852
O'Charleys, Inc. .......................... 190 2,204
P.F. Chang's China Bistro, Inc.*........... 210 6,516
Papa John's International, Inc.*........... 190 5,130
Peet's Coffee & Tea, Inc.*................. 120 2,788
Pinnacle Entertainment, Inc.*.............. 510 7,915
Premier Exhibitions, Inc.*................. 250 1,453
Red Robin Gourmet Burgers, Inc.*........... 140 5,751
Riviera Holdings Corp.*.................... 90 1,486
Ruby Tuesday, Inc. ........................ 470 4,000
Ruth's Chris Steak House*.................. 160 1,176
Shuffle Master, Inc.*...................... 300 1,473
Six Flags, Inc.*........................... 610 1,098
Sonic Corp.*............................... 520 11,435
Speedway Motorsports, Inc. ................ 120 3,125
Steak n Shake Co.*......................... 250 1,980
Texas Roadhouse, Inc. -- Class A*.......... 450 5,310
Town Sports International Holdings, Inc.*.. 140 1,039
Triarc Cos., Inc. -- Class A............... 540 3,834
Trump Entertainment Resorts, Inc.*......... 270 753
Vail Resorts, Inc.*........................ 270 13,184
WMS Industries, Inc.*...................... 350 12,666
-----------
TOTAL HOTELS, RESTAURANTS & LEISURE 256,895
-----------
HOUSEHOLD DURABLES 0.9%
American Greetings Corp. -- Class A........ 450 8,055
Avatar Holdings, Inc.*..................... 50 2,043
Beazer Homes USA, Inc. .................... 340 3,764
Blyth, Inc. ............................... 210 3,536
Brookfield Homes Corp. .................... 100 1,574
Champion Enterprises, Inc.*................ 660 6,811
CSS Industries, Inc. ...................... 70 2,189
Ethan Allen Interiors, Inc. ............... 210 5,769
Furniture Brands International, Inc. ...... 420 5,691
Helen of Troy, Ltd.*....................... 260 4,396
Hooker Furniture Corp. .................... 100 2,097
Hovnanian Enterprises, Inc. -- Class A*.... 320 3,782
iRobot Corp.*.............................. 130 2,085
La-Z-Boy, Inc. ............................ 440 2,803
Libbey, Inc. .............................. 120 1,704
Lifetime Brands, Inc. ..................... 90 767
M/I Homes, Inc. ........................... 100 1,715
Meritage Homes Corp.*...................... 230 4,363
National Presto Industries, Inc. .......... 40 2,168
Palm Harbor Homes, Inc.*................... 80 689
Russ Berrie & Co., Inc.*................... 140 1,963
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 33
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Sealy Corp. ............................... 390 $2,379
Skyline Corp. ............................. 60 1,651
Standard Pacific Corp. .................... 560 2,834
Syntax-Brillian Corp.*..................... 490 598
Tarragon Corp.*............................ 120 293
Tempur-Pedic International, Inc. .......... 650 7,221
Tupperware Brands Corp. ................... 530 20,882
Universal Electronics, Inc.*............... 120 3,084
WCI Communities, Inc.*..................... 270 888
-----------
TOTAL HOUSEHOLD DURABLES 107,794
-----------
HOUSEHOLD PRODUCTS 0.1%
Central Garden & Pet Co.*.................. 600 3,012
Spectrum Brands, Inc.*..................... 340 1,527
WD-40 Co. ................................. 150 4,668
-----------
TOTAL HOUSEHOLD PRODUCTS 9,207
-----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 0.2%
Black Hills Corp. ......................... 320 12,483
Ormat Technologies, Inc. .................. 120 5,916
-----------
TOTAL INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 18,399
-----------
INDUSTRIAL CONGLOMERATES 0.4%
Raven Industries, Inc. .................... 140 4,289
Standex International Corp. ............... 110 2,319
Tredegar Corp. ............................ 240 3,922
Walter Industries, Inc. ................... 450 31,212
-----------
TOTAL INDUSTRIAL CONGLOMERATES 41,742
-----------
INSURANCE 3.0%
American Equity Investment Life Holding
Co. .................................... 490 4,728
American Physicians Capital, Inc. ......... 70 3,245
Amerisafe, Inc.*........................... 160 2,282
Amtrust Financial Services, Inc. .......... 220 3,421
Argo Group International Holdings, Ltd.*... 250 8,955
Aspen Insurance Holdings, Ltd. ............ 760 19,752
Assured Guaranty, Ltd. .................... 690 17,450
Baldwin & Lyons, Inc. ..................... 70 1,664
Castlepoint Holdings, Ltd. ................ 70 644
Citizens, Inc.*............................ 320 2,256
CNA Surety Corp.*.......................... 140 1,852
Commerce Group, Inc. ...................... 420 15,305
Crawford & Co. -- Class B*................. 220 1,142
Darwin Professional Underwriters, Inc.*.... 70 1,733
Delphi Financial Group..................... 370 10,071
Donegal Group, Inc. -- Class A............. 110 1,869
eHealth, Inc.*............................. 110 2,976
EMC Insurance Group, Inc. ................. 50 1,460
Employers Holdings, Inc. .................. 430 8,204
Enstar Group, Ltd.*........................ 60 6,524
FBL Financial Group, Inc. ................. 120 3,323
First Acceptance Corp.*.................... 150 467
First Mercury Financial Corp.*............. 110 1,738
Flagstone Reinsurance Holdings, Ltd. ...... 120 1,468
FPIC Insurance Group, Inc.*................ 80 3,722
Greenlight Capital Re, Ltd.*............... 90 1,577
Hallmark Financial Services*............... 40 433
Harleysville Group, Inc. .................. 130 4,738
Hilb Rogal & Hobbs Co. .................... 320 9,258
Hilltop Holdings, Inc.*.................... 410 4,330
Horace Mann Educators Corp. ............... 350 5,922
Independence Holding Co. .................. 50 670
Infinity Property & Casualty Corp. ........ 140 5,426
IPC Holdings, Ltd. ........................ 520 15,137
Kansas City Life Insurance Co. ............ 40 2,000
LandAmerica Financial Group, Inc. ......... 130 3,731
Max Capital Group, Ltd. ................... 480 11,237
Meadowbrook Insurance Group, Inc. ......... 280 2,027
Montpelier Re Holdings, Ltd. .............. 830 13,695
National Financial Partners Corp. ......... 320 8,614
National Interstate Corp. ................. 50 1,138
National Western Life Insurance Co. ....... 20 5,072
Navigators Group, Inc.*.................... 110 5,390
NYMAGIC, Inc. ............................. 50 1,138
Odyssey Re Holdings Corp. ................. 230 8,229
Phoenix Cos., Inc. ........................ 980 12,740
Platinum Underwriters Holdings, Ltd. ...... 460 16,500
PMA Capital Corp. -- Class A*.............. 280 2,598
Presidential Life Corp. ................... 190 3,222
ProAssurance Corp.*........................ 290 15,350
RAM Holdings, Ltd.*........................ 160 275
RLI Corp. ................................. 170 8,160
Safety Insurance Group, Inc. .............. 140 5,026
SeaBright Insurance Holdings, Inc.*........ 180 2,794
Security Capital Assurance, Ltd. .......... 210 206
Selective Insurance Group, Inc. ........... 470 10,020
State Auto Financial Corp. ................ 120 3,306
Stewart Information Services Corp. ........ 150 3,674
Tower Group, Inc. ......................... 170 3,993
United America Indemnity, Ltd.*............ 210 3,247
United Fire & Casualty Co. ................ 190 6,260
Validus Holdings, Ltd. .................... 140 3,185
Zenith National Insurance Corp. ........... 320 11,885
-----------
TOTAL INSURANCE 348,454
-----------
INTERNET & CATALOG RETAIL 0.7%
1-800-FLOWERS.COM, Inc. -- Class A*........ 210 1,852
Blue Nile, Inc.*........................... 120 5,960
FTD Group, Inc. ........................... 160 2,200
Gaiam, Inc. -- Class A*.................... 150 2,640
GSI Commerce, Inc.*........................ 170 2,366
NetFlix, Inc.*............................. 360 11,513
Orbitz Worldwide, Inc.*.................... 290 2,306
Overstock.com, Inc.*....................... 140 2,691
PetMed Express, Inc.*...................... 180 2,020
Priceline.com, Inc.*....................... 330 42,121
Shutterfly, Inc.*.......................... 130 2,126
Stamps.com, Inc.*.......................... 140 1,919
Systemax, Inc. ............................ 90 1,440
ValueVision Media, Inc.- Class A*.......... 260 1,453
-----------
TOTAL INTERNET & CATALOG RETAIL 82,607
-----------
INTERNET SOFTWARE & SERVICES 2.1%
Ariba, Inc.*............................... 730 8,665
Art Technology Group, Inc.*................ 1,100 3,938
AsiaInfo Holdings, Inc.*................... 270 3,286
Bankrate, Inc.*............................ 100 5,224
Chordiant Software, Inc.*.................. 280 1,277
CMGI, Inc.*................................ 420 5,809
CNET Networks, Inc.*....................... 1,300 10,075
comScore, Inc.*............................ 50 944
Constant Contact, Inc.*.................... 60 1,071
DealerTrack Holdings, Inc.*................ 310 5,964
Dice Holdings, Inc.*....................... 150 1,023
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 34
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Digital River, Inc.*....................... 360 $11,826
DivX, Inc.*................................ 200 1,496
EarthLink, Inc.*........................... 950 8,673
Equinix, Inc.*............................. 310 28,030
Greenfield Online, Inc.*................... 190 2,168
HSW International, Inc.*................... 130 521
Imergent, Inc. ............................ 100 1,141
InfoSpace, Inc. ........................... 280 3,377
Internap Network Services Corp.*........... 420 2,020
Internet Brands, Inc. -- Class A*.......... 50 326
Internet Capital Group, Inc.*.............. 330 3,316
Interwoven, Inc.*.......................... 380 4,279
Ipass, Inc.*............................... 430 1,225
j2 Global Communications, Inc.*............ 430 9,202
Keynote Systems, Inc.*..................... 140 1,617
Knot, Inc.*................................ 240 2,818
Limelight Networks, Inc.*.................. 160 445
Liquidity Services, Inc.*.................. 90 734
LivePerson, Inc.*.......................... 350 1,180
LoopNet, Inc.*............................. 230 2,597
Marchex, Inc. ............................. 240 2,479
Mercadolibre, Inc.*........................ 140 7,081
Move, Inc.*................................ 900 2,835
NIC, Inc. ................................. 340 2,203
Omniture, Inc.*............................ 380 8,672
On2 Technologies, Inc.*.................... 1,380 1,201
Openwave Systems, Inc. .................... 710 1,519
Perficient, Inc.*.......................... 270 2,479
RealNetworks, Inc.*........................ 830 5,113
S1 Corp.*.................................. 440 2,974
SAVVIS, Inc.*.............................. 240 3,516
Sohu.com, Inc.*............................ 240 16,591
SonicWALL, Inc.*........................... 520 3,999
Switch & Data Facilities Co., Inc.*........ 110 1,665
TechTarget, Inc.*.......................... 70 939
Terremark Worldwide, Inc.*................. 440 2,649
TheStreet.com, Inc. ....................... 190 1,484
Travelzoo, Inc.*........................... 60 668
United Online, Inc. ....................... 570 6,088
ValueClick, Inc.*.......................... 860 17,157
Vignette Corp.*............................ 210 2,425
VistaPrint, Ltd.*.......................... 370 12,591
Vocus, Inc.*............................... 110 3,057
Websense, Inc.*............................ 390 7,585
-----------
TOTAL INTERNET SOFTWARE & SERVICES 251,237
-----------
IT SERVICES 1.6%
BearingPoint, Inc.*........................ 1,850 3,423
CACI International, Inc. -- Class A*....... 270 13,532
Cass Information Systems, Inc. ............ 60 2,023
Ciber, Inc.*............................... 470 2,942
CSG Systems International, Inc.*........... 290 3,509
Cybersource Corp.*......................... 550 9,983
Euronet Worldwide, Inc.*................... 390 6,895
ExlService Holdings, Inc.*................. 190 4,773
Forrester Research, Inc.*.................. 130 3,749
Gartner, Inc.*............................. 560 12,835
Gevity HR, Inc. ........................... 210 1,432
Global Cash Access Holdings, Inc.*......... 380 2,348
Heartland Payment Systems, Inc. ........... 140 3,066
iGate Corp.*............................... 190 1,545
Information Services Group, Inc.*.......... 210 1,088
infoUSA, Inc. ............................. 280 1,588
Integral Systems, Inc. .................... 80 2,759
Lionbridge Technologies, Inc.*............. 520 1,534
Mantech International Corp. -- Class A*.... 170 8,121
MAXIMUS, Inc. ............................. 160 6,067
MPS Group, Inc.*........................... 820 8,799
Ness Technologies, Inc.*................... 290 2,630
Online Resources Corp.*.................... 250 2,528
Perot Systems Corp.*....................... 750 11,730
RightNow Technologies, Inc.*............... 160 1,915
Safeguard Scientifics, Inc.*............... 1,040 1,664
SAIC, Inc.*................................ 1,440 27,360
Sapient Corp.*............................. 700 4,984
SI International, Inc.*.................... 110 2,523
SRA International, Inc. -- Class A*........ 360 9,457
SYKES Enterprises, Inc.*................... 280 4,654
Syntel, Inc. .............................. 110 3,642
TNS, Inc.*................................. 210 4,830
Virtusa Corp.*............................. 40 444
Wright Express Corp.*...................... 340 11,220
-----------
TOTAL IT SERVICES 191,592
-----------
LEISURE EQUIPMENT & PRODUCTS 0.4%
Arctic Cat, Inc. .......................... 100 758
Callaway Golf Co. ......................... 570 7,832
JAKKS Pacific, Inc.*....................... 240 5,637
Leapfrog Enterprises, Inc.*................ 300 2,493
Marine Products Corp. ..................... 100 736
MarineMax, Inc.*........................... 140 1,596
Nautilus, Inc. ............................ 270 975
Polaris Industries, Inc. .................. 290 13,499
RC2 Corp.*................................. 150 2,775
Smith & Wesson Holding Corp.*.............. 260 1,950
Steinway Musical Instruments, Inc.*........ 70 2,030
Sturm Ruger & Co., Inc.*................... 180 1,354
-----------
TOTAL LEISURE EQUIPMENT & PRODUCTS 41,635
-----------
LIFE SCIENCES TOOLS & SERVICES 1.2%
Affymetrix, Inc.*.......................... 590 6,437
Albany Molecular Research, Inc.*........... 210 2,440
AMAG Pharmaceuticals, Inc.*................ 140 5,744
Bio-Rad Laboratories, Inc. -- Class A*..... 160 13,336
Bruker BioSciences Corp.*.................. 560 6,787
Cambrex Corp. ............................. 250 1,463
Dionex Corp.*.............................. 160 12,515
Enzo Biochem, Inc.*........................ 270 2,209
eResearchTechnology, Inc.*................. 340 4,141
Exelixis, Inc.*............................ 900 6,849
Illumina, Inc.*............................ 460 35,829
Kendle International, Inc.*................ 110 4,696
Luminex Corp.*............................. 310 6,048
Medivation, Inc.*.......................... 180 2,754
Nektar Therapeutics*....................... 790 3,808
Parexel International Corp.*............... 480 12,192
PharmaNet Development Group, Inc.*......... 160 3,818
Varian, Inc.*.............................. 260 13,242
-----------
TOTAL LIFE SCIENCES TOOLS & SERVICES 144,308
-----------
MACHINERY 3.1%
3D Systems Corp.*.......................... 150 2,278
Accuride Corp.*............................ 200 1,594
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 35
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Actuant Corp. ............................. 470 $15,919
Albany International Corp. -- Class A...... 250 9,075
Altra Holdings, Inc.*...................... 100 1,523
American Railcar Industries, Inc. ......... 80 1,650
Ampco-Pittsburgh Corp. .................... 60 2,713
Astec Industries, Inc.*.................... 160 5,864
Badger Meter, Inc. ........................ 120 6,248
Barnes Group, Inc. ........................ 400 10,432
Blount International, Inc.*................ 330 4,082
Briggs & Stratton Corp. ................... 430 6,545
Bucyrus International, Inc. -- Class A..... 320 40,298
Cascade Corp. ............................. 100 4,325
Chart Industries, Inc.*.................... 120 4,877
CIRCOR International, Inc. ................ 140 6,744
CLARCOR, Inc. ............................. 440 18,462
Columbus McKinnon Corp.*................... 160 4,530
Commercial Vehicle Group, Inc.*............ 180 2,169
Dynamic Materials Corp. ................... 100 4,703
EnPro Industries, Inc.*.................... 180 6,534
ESCO Technologies, Inc.*................... 220 10,243
Federal Signal Corp. ...................... 410 5,691
Flow International Corp.*.................. 320 3,210
Force Protection, Inc.*.................... 590 1,764
FreightCar America, Inc. .................. 110 4,224
Gehl Co.*.................................. 90 1,389
Gorman-Rupp Co. ........................... 120 4,204
Greenbrier Cos., Inc. ..................... 140 3,185
Hardinge, Inc. ............................ 100 1,668
Hurco Cos., Inc.*.......................... 50 2,289
Kadant, Inc.*.............................. 120 3,130
Kaydon Corp. .............................. 240 12,569
LB Foster Co. -- Class A*.................. 90 2,889
Lindsay Corp. ............................. 100 10,412
Middleby Corp.*............................ 120 7,530
Miller Industries, Inc.*................... 90 1,015
Mueller Industries, Inc. .................. 320 10,358
Mueller Water Products, Inc. .............. 990 7,969
NACCO Industries, Inc. .................... 50 4,495
Nordson Corp. ............................. 290 17,119
RBC Bearings, Inc.*........................ 180 7,195
Robbins & Myers, Inc. ..................... 240 9,566
Sun Hydraulics Corp. ...................... 100 3,018
Tecumseh Products Co. -- Class A*.......... 130 4,073
Tennant Co. ............................... 150 5,119
Titan International, Inc. ................. 210 7,482
Titan Machinery, Inc.*..................... 50 911
Trimas Corp.*.............................. 120 740
TurboChef Technologies, Inc.*.............. 170 1,472
Twin Disc, Inc. ........................... 80 1,442
Valmont Industries, Inc. .................. 160 15,754
Wabash National Corp. ..................... 260 2,179
Wabtec Corp. .............................. 420 18,010
Watts Water Technologies, Inc. ............ 260 6,986
Xerium Technologies, Inc. ................. 170 287
-----------
TOTAL MACHINERY 360,152
-----------
MARINE 0.3%
American Commercial Lines, Inc.*........... 430 6,803
Eagle Bulk Shipping, Inc. ................. 400 11,772
Genco Shipping & Trading, Ltd. ............ 170 11,501
Horizon Lines, Inc. ....................... 260 2,743
TBS International, Ltd.*................... 40 1,607
Ultrapetrol Bahamas, Ltd.*................. 130 1,249
-----------
TOTAL MARINE 35,675
-----------
MEDIA 1.4%
AH Belo Corp. -- Class A*.................. 150 1,462
Arbitron, Inc. ............................ 240 11,482
Belo Corp. -- Class A...................... 730 7,373
Carmike Cinemas, Inc. ..................... 110 902
Charter Communications, Inc. -- Class A*... 3,520 3,766
Cinemark Holdings, Inc. ................... 240 3,554
Citadel Broadcasting Corp. ................ 1,570 2,135
CKX, Inc.*................................. 330 2,970
Cox Radio, Inc. -- Class A*................ 270 3,140
Crown Media Holdings, Inc. -- Class A*..... 140 638
Cumulus Media, Inc.*....................... 240 1,416
DG FastChannel, Inc.*...................... 130 2,424
Dolan Media Co.*........................... 100 1,734
Emmis Communications Corp.*................ 260 809
Entercom Communications Corp. -- Class A... 260 2,756
Entravision Communications Corp.*.......... 540 3,775
Fisher Communications, Inc.*............... 50 1,638
GateHouse Media, Inc. ..................... 190 1,007
Gemstar-TV Guide International, Inc.*...... 2,160 8,705
Global Sources, Ltd.*...................... 150 2,083
Gray Television, Inc. ..................... 360 1,692
Harris Interactive, Inc.*.................. 450 1,125
Interactive Data Corp. .................... 310 8,364
Journal Communications, Inc. .............. 350 2,016
Knology, Inc.*............................. 220 2,820
Lakes Entertainment, Inc.*................. 150 696
Lee Enterprises, Inc. ..................... 400 3,092
Lin TV Corp. -- Class A*................... 230 2,305
Live Nation, Inc.*......................... 630 8,688
Lodgenet Entertainment Corp.*.............. 200 1,224
Martha Stewart Living Omnimedia, Inc.*..... 230 1,819
Marvel Entertainment, Inc.*................ 430 12,337
Media General, Inc. -- Class A............. 190 2,789
Mediacom Communications Corp.*............. 410 1,759
Morningstar, Inc.*......................... 110 6,378
National CineMedia, Inc. .................. 360 6,898
Nexstar Broadcasting Group, Inc.*.......... 90 508
Playboy Enterprises, Inc. -- Class B*...... 190 1,588
Primedia, Inc. ............................ 380 2,573
Radio One, Inc.*........................... 660 660
RCN Corp.*................................. 260 2,980
Salem Communications Corp. -- Class A...... 80 272
Scholastic Corp.*.......................... 260 7,319
Sinclair Broadcast Group, Inc. ............ 420 3,692
Spanish Broadcasting System, Inc.*......... 350 577
Sun-Times Media Group, Inc.*............... 560 392
Valassis Communications, Inc.*............. 410 5,822
Value Line, Inc. .......................... 10 448
Westwood One, Inc.*........................ 610 1,019
World Wrestling Entertainment,
Inc. -- Class A......................... 190 3,353
-----------
TOTAL MEDIA 158,974
-----------
METALS & MINING 1.3%
AM Castle & Co. ........................... 120 3,709
AMCOL International Corp. ................. 220 6,534
Apex Silver Mines, Ltd.*................... 510 5,125
Brush Engineered Materials, Inc.*.......... 170 5,272
Century Aluminum Co.*...................... 250 17,322
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 36
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Coeur d'Alene Mines Corp.*................. 4,230 $12,986
Compass Minerals International, Inc. ...... 280 17,640
Esmark, Inc.*.............................. 110 1,836
General Moly, Inc.*........................ 420 3,797
Haynes International, Inc.*................ 100 6,265
Hecla Mining Co.*.......................... 1,040 10,670
Horsehead Holding Corp.*................... 50 701
Kaiser Aluminum Corp. ..................... 130 8,922
Olympic Steel, Inc. ....................... 80 4,096
Royal Gold, Inc. .......................... 220 6,224
RTI International Metals, Inc.*............ 200 8,238
Schnitzer Steel Industries, Inc. .......... 190 16,720
Stillwater Mining Co.*..................... 360 5,105
Universal Stainless & Alloy*............... 60 2,296
US Gold Corp.*............................. 480 984
Worthington Industries, Inc. .............. 560 10,086
-----------
TOTAL METALS & MINING 154,528
-----------
MULTI-UTILITIES 0.2%
Avista Corp. .............................. 450 9,239
CH Energy Group, Inc. ..................... 140 4,950
PNM Resources, Inc. ....................... 660 9,563
-----------
TOTAL MULTI-UTILITIES 23,752
-----------
MULTILINE RETAIL 0.1%
99 Cents Only Stores*...................... 400 3,804
Bon-Ton Stores, Inc. ...................... 90 789
Fred's, Inc. -- Class A.................... 350 3,878
Retail Ventures, Inc.*..................... 240 1,231
Tuesday Morning Corp.*..................... 260 1,415
-----------
TOTAL MULTILINE RETAIL 11,117
-----------
OIL, GAS & CONSUMABLE FUELS 4.5%
Alon USA Energy, Inc. ..................... 110 1,535
Alpha Natural Resources, Inc.*............. 560 27,244
APCO Argentina, Inc. ...................... 80 1,970
Approach Resources, Inc.*.................. 70 1,327
Arena Resources, Inc.*..................... 260 11,674
Arlington Tankers, Ltd. ................... 110 2,461
Atlas America, Inc. ....................... 200 13,912
ATP Oil & Gas Corp.*....................... 220 6,323
Aventine Renewable Energy Holdings, Inc.*.. 260 1,141
Berry Petroleum Co. -- Class A............. 340 16,837
Bill Barrett Corp.*........................ 270 13,886
Bois d'Arc Energy, Inc.*................... 160 3,824
BPZ Resources, Inc.*....................... 530 10,324
Brigham Exploration Co.*................... 390 3,682
Callon Petroleum Co.*...................... 180 3,600
Carrizo Oil & Gas, Inc.*................... 230 14,603
Clayton Williams Energy, Inc.*............. 50 3,159
Clean Energy Fuels Corp.*.................. 90 1,172
Comstock Resources, Inc.*.................. 380 17,286
Concho Resources, Inc.*.................... 200 5,514
Contango Oil & Gas Co.*.................... 110 8,429
Crosstex Energy, Inc. ..................... 320 11,075
CVR Energy, Inc.*.......................... 170 3,660
Delek US Holdings, Inc. ................... 100 1,103
Delta Petroleum Corp.*..................... 570 13,988
Double Hull Tankers, Inc. ................. 180 1,845
Edge Petroleum Corp.*...................... 250 1,305
Encore Acquisition Co.*.................... 460 20,990
Energy Partners, Ltd.*..................... 240 2,916
Evergreen Energy, Inc.*.................... 720 1,058
EXCO Resources, Inc.*...................... 530 11,830
FX Energy, Inc.*........................... 350 1,743
General Maritime Corp. .................... 250 6,532
GeoGlobal Resources, Inc.*................. 280 647
GeoMet, Inc.*.............................. 160 1,080
GMX Resources, Inc.*....................... 120 4,361
Golar LNG, Ltd. ........................... 300 6,018
Goodrich Petroleum Corp.*.................. 160 5,405
Gulfport Energy Corp.*..................... 200 2,318
Harvest Natural Resources, Inc.*........... 300 2,847
International Coal Group, Inc.*............ 1,090 8,676
Knightsbridge Tankers, Ltd. ............... 150 4,329
Mariner Energy, Inc.*...................... 750 20,670
McMoRan Exploration Co.*................... 390 10,694
Meridian Resource Corp.*................... 770 1,632
Nordic American Tanker Shipping, Ltd. ..... 260 8,767
Nova Biosource Fuels, Inc.*................ 270 308
Oilsands Quest, Inc.*...................... 1,200 5,220
Pacific Ethanol, Inc.*..................... 310 1,063
Parallel Petroleum Corp.*.................. 360 7,628
Penn Virginia Corp. ....................... 350 18,375
PetroHawk Energy Corp.*.................... 1,660 39,242
Petroleum Development Corp.*............... 130 9,780
PetroQuest Energy, Inc.*................... 360 7,481
Rentech, Inc.*............................. 1,400 1,764
Rex Energy Corp.*.......................... 80 1,736
Rosetta Resources, Inc.*................... 440 9,588
Ship Finance International, Ltd. .......... 270 8,186
Stone Energy Corp.*........................ 240 14,626
Swift Energy Co.*.......................... 260 13,556
Teekay Tankers, Ltd. ...................... 120 2,422
Toreador Resources Corp.*.................. 130 1,067
TXCO Resources, Inc.*...................... 290 3,706
Uranium Resources, Inc.*................... 450 2,682
USEC, Inc.*................................ 930 4,315
VAALCO Energy, Inc.*....................... 510 3,305
Venoco, Inc.*.............................. 120 1,804
VeraSun Energy Corp.*...................... 440 2,746
Verenium Corp.*............................ 350 1,050
Warren Resources, Inc.*.................... 500 6,140
Whiting Petroleum Corp.*................... 360 27,547
World Fuel Services Corp. ................. 250 6,140
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 526,869
-----------
PAPER & FOREST PRODUCTS 0.2%
AbitibiBowater, Inc. ...................... 460 4,540
Buckeye Technologies, Inc.*................ 330 2,848
Deltic Timber Corp. ....................... 90 4,748
Glatfelter................................. 390 5,690
Mercer International, Inc.*................ 270 1,812
Neenah Paper, Inc. ........................ 130 2,987
Schweitzer-Mauduit International, Inc. .... 140 3,098
Wausau Paper Corp. ........................ 380 2,941
-----------
TOTAL PAPER & FOREST PRODUCTS 28,664
-----------
PERSONAL PRODUCTS 0.3%
American Oriental Bioengineering, Inc.*.... 480 4,618
Chattem, Inc.*............................. 150 10,482
Elizabeth Arden, Inc.*..................... 210 3,887
Inter Parfums, Inc. ....................... 70 2,027
Mannatech, Inc. ........................... 130 849
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 37
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Nu Skin Enterprises, Inc. -- Class A....... 430 $7,710
Prestige Brands Holdings, Inc.*............ 290 2,604
Revlon, Inc. -- Class A*................... 1,690 1,572
Tiens Biotech Group USA, Inc.*............. 30 58
USANA Health Sciences, Inc.*............... 70 1,365
-----------
TOTAL PERSONAL PRODUCTS 35,172
-----------
PHARMACEUTICALS 1.2%
Akorn, Inc.*............................... 470 2,115
Alexza Pharmaceuticals, Inc.*.............. 170 1,127
Alpharma, Inc. -- Class A*................. 370 9,106
Auxilium Pharmaceuticals, Inc.*............ 270 8,302
Bentley Pharmaceuticals, Inc.*............. 160 2,464
Biodel, Inc.*.............................. 50 692
BioForm Medical, Inc.*..................... 100 508
BioMimetic Therapeutics, Inc.*............. 90 884
Cadence Pharmaceuticals, Inc.*............. 180 1,181
Caraco Pharmaceutical Laboratories, Ltd.*.. 90 1,483
Cypress Bioscience, Inc.*.................. 320 2,106
Discovery Laboratories, Inc.*.............. 830 2,382
Durect Corp.*.............................. 640 2,906
Javelin Pharmaceuticals, Inc.*............. 370 977
Jazz Pharmaceuticals, Inc.*................ 50 451
KV Pharmaceutical Co. -- Class A*.......... 300 7,332
MAP Pharmaceuticals, Inc.*................. 50 668
Medicines Co.*............................. 450 8,887
Medicis Pharmaceutical Corp. -- Class A.... 480 9,888
Nastech Pharmaceutical Co., Inc.*.......... 230 315
Noven Pharmaceuticals, Inc.*............... 210 1,911
Obagi Medical Products, Inc.*.............. 50 401
Pain Therapeutics, Inc.*................... 310 2,151
Par Pharmaceutical Cos., Inc.*............. 290 4,944
Penwest Pharmaceuticals, Co.*.............. 200 598
Perrigo Co. ............................... 660 27,053
Pozen, Inc.*............................... 220 2,911
Salix Pharmaceuticals, Ltd.*............... 410 2,878
Santarus, Inc.*............................ 440 1,179
Sciele Pharma, Inc.*....................... 300 5,781
Sirtris Pharmaceuticals, Inc.*............. 50 1,117
Somaxon Pharmaceuticals, Inc.*............. 90 415
Sucampo Pharmaceuticals, Inc. -- Class A*.. 40 573
SuperGen, Inc.*............................ 460 1,293
Valeant Pharmaceuticals International*..... 770 10,226
ViroPharma, Inc.*.......................... 600 5,496
Vivus, Inc.*............................... 500 2,835
XenoPort, Inc.*............................ 190 8,128
-----------
TOTAL PHARMACEUTICALS 143,664
-----------
REAL ESTATE INVESTMENT TRUSTS (REITS) 5.5%
Acadia Realty Trust........................ 280 7,179
Agree Realty Corp. ........................ 70 1,865
Alesco Financial, Inc. .................... 530 1,829
Alexander's, Inc.*......................... 20 7,126
Alexandria Real Estate Equities, Inc. ..... 270 28,358
American Campus Communities, Inc. ......... 230 7,022
Anthracite Capital, Inc. .................. 550 4,290
Anworth Mortgage Asset Corp. .............. 650 4,342
Arbor Realty Trust, Inc. .................. 120 2,072
Ashford Hospitality Trust, Inc. ........... 910 5,269
Associated Estates Realty Corp. ........... 130 1,573
BioMed Realty Trust, Inc. ................. 560 14,560
BRT Realty Trust........................... 60 905
Capital Trust, Inc. -- Class A............. 120 3,210
CapLease, Inc. ............................ 370 3,075
CBRE Realty Finance, Inc. ................. 250 970
Cedar Shopping Centers, Inc. .............. 380 4,750
Chimera Investment Corp. .................. 290 4,022
Corporate Office Properties Trust.......... 340 12,682
Cousins Properties, Inc. .................. 350 8,894
Crystal River Capital, Inc. ............... 220 1,815
DCT Industrial Trust, Inc. ................ 1,450 14,500
Deerfield Capital Corp. ................... 570 798
DiamondRock Hospitality Co. ............... 810 10,328
Digital Realty Trust, Inc. ................ 490 18,987
DuPont Fabros Technology, Inc. ............ 300 5,400
EastGroup Properties, Inc. ................ 200 9,542
Education Realty Trust, Inc. .............. 240 3,202
Entertainment Properties Trust............. 240 12,806
Equity Lifestyle Properties, Inc. ......... 170 8,405
Equity One, Inc. .......................... 310 7,657
Extra Space Storage, Inc. ................. 550 9,257
FelCor Lodging Trust, Inc. ................ 540 6,799
First Industrial Realty Trust, Inc. ....... 390 11,782
First Potomac Realty Trust................. 210 3,568
Franklin Street Properties Corp. .......... 510 7,533
Friedman, Billings, Ramsey Group, Inc. .... 1,210 3,013
Getty Realty Corp. ........................ 150 2,717
Glimcher Realty Trust...................... 320 3,840
GMH Communities Trust...................... 270 2,549
Gramercy Capital Corp. .................... 350 6,650
Healthcare Realty Trust, Inc. ............. 440 12,465
Hersha Hospitality Trust................... 350 3,332
Highwoods Properties, Inc. ................ 490 17,170
Home Properties, Inc. ..................... 290 15,245
IMPAC Mortgage Holdings, Inc.*............. 660 779
Inland Real Estate Corp. .................. 500 8,075
Investors Real Estate Trust................ 490 4,998
JER Investors Trust, Inc. ................. 220 1,694
Kite Realty Group Trust.................... 180 2,444
LaSalle Hotel Properties................... 350 11,224
Lexington Corporate Properties Trust....... 530 7,632
LTC Properties, Inc. ...................... 200 5,446
Luminent Mortgage Capital, Inc.*........... 360 86
Maguire Properties, Inc. .................. 320 5,152
Medical Properties Trust, Inc. ............ 560 6,804
MFA Mortgage Investments, Inc. ............ 1,310 9,157
Mid-America Apartment Communities, Inc. ... 220 11,550
Mission West Properties, Inc. ............. 170 2,021
National Health Investors, Inc. ........... 200 6,118
National Retail Properties, Inc. .......... 620 14,204
Nationwide Health Properties, Inc. ........ 820 29,536
Newcastle Investment Corp. ................ 360 3,560
NorthStar Realty Finance Corp. ............ 530 5,496
Omega Healthcare Investors, Inc. .......... 580 10,150
Parkway Properties, Inc. .................. 140 5,552
Pennsylvania Real Estate Investment Trust.. 280 7,050
Post Properties, Inc. ..................... 380 13,946
Potlatch Corp. ............................ 340 15,235
PS Business Parks, Inc. ................... 140 8,014
RAIT Financial Trust....................... 550 4,180
Ramco-Gershenson Properties Trust.......... 160 3,595
Realty Income Corp. ....................... 870 22,890
Redwood Trust, Inc. ....................... 210 6,991
Resource Capital Corp. .................... 190 1,651
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 38
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Saul Centers, Inc. ........................ 90 $4,491
Senior Housing Properties Trust............ 820 19,639
Sovran Self Storage, Inc. ................. 190 8,493
Strategic Hotels & Resorts, Inc. .......... 640 9,222
Sun Communities, Inc. ..................... 140 2,723
Sunstone Hotel Investors, Inc. ............ 540 10,087
Tanger Factory Outlet Centers, Inc. ....... 270 10,892
U-Store-It Trust........................... 400 4,828
Universal Health Realty Income Trust....... 100 3,354
Urstadt Biddle Properties, Inc. ........... 180 3,037
Washington Real Estate Investment Trust.... 390 13,857
Winthrop Realty Trust...................... 440 1,914
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) 651,120
-----------
REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1%
Consolidated-Tomoka Land Co. .............. 50 2,609
FX Real Estate and Entertainment, Inc.*.... 70 337
Grubb & Ellis Co. ......................... 340 2,087
Meruelo Maddux Properties, Inc.*........... 390 983
Stratus Properties, Inc.*.................. 40 1,116
Tejon Ranch Co.*........................... 100 4,226
Thomas Properties Group, Inc. ............. 200 1,666
-----------
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT 13,024
-----------
ROAD & RAIL 0.5%
Amerco, Inc.*.............................. 90 5,169
Arkansas Best Corp. ....................... 190 7,501
Celadon Group, Inc.*....................... 190 1,955
Dollar Thrifty Automotive Group, Inc.*..... 180 2,374
Genesee & Wyoming, Inc. -- Class A*........ 270 9,634
Heartland Express, Inc. ................... 500 7,735
Knight Transportation, Inc. ............... 490 8,325
Marten Transport, Ltd.*.................... 130 2,119
Old Dominion Freight Line, Inc.*........... 260 7,982
Patriot Transportation Holding, Inc.*...... 10 814
Saia, Inc.*................................ 120 1,657
Universal Truckload Services, Inc.*........ 50 1,048
Werner Enterprises, Inc. .................. 400 7,780
-----------
TOTAL ROAD & RAIL 64,093
-----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.9%
Actel Corp.*............................... 220 3,626
Advanced Analogic Technologies, Inc.*...... 330 2,284
Advanced Energy Industries, Inc.*.......... 310 4,340
Amkor Technology, Inc.*.................... 900 8,595
Anadigics, Inc.*........................... 540 6,026
Applied Micro Circuits Corp.*.............. 560 4,906
Asyst Technologies, Inc.*.................. 420 1,504
Atheros Communications, Inc.*.............. 510 13,576
ATMI, Inc.*................................ 300 8,832
AuthenTec, Inc.*........................... 70 939
Axcelis Technologies, Inc.*................ 880 4,752
Brooks Automation, Inc.*................... 560 5,802
Cabot Microelectronics Corp.*.............. 200 6,810
Cavium Networks, Inc.*..................... 60 1,233
Cirrus Logic, Inc.*........................ 760 5,434
Cohu, Inc. ................................ 200 3,474
Conexant Systems, Inc.*.................... 4,230 2,094
Credence Systems Corp.*.................... 870 905
Cymer, Inc.*............................... 260 6,757
Diodes, Inc.*.............................. 260 7,030
DSP Group, Inc.*........................... 260 3,414
Eagle Test Systems, Inc.*.................. 110 1,328
Entegris, Inc.*............................ 1,000 7,540
Entropic Communications, Inc.*............. 80 342
Exar Corp.*................................ 350 2,950
FEI Co.*................................... 310 6,780
FormFactor, Inc.*.......................... 410 7,901
Hittite Microwave Corp.*................... 140 5,558
IXYS Corp.*................................ 210 1,506
Kulicke & Soffa Industries, Inc.*.......... 460 3,031
Lattice Semiconductor Corp.*............... 990 3,356
LTX Corp.*................................. 540 1,566
Mattson Technology, Inc.*.................. 430 2,085
Micrel, Inc. .............................. 440 4,321
Microsemi Corp.*........................... 660 16,170
Microtune, Inc.*........................... 460 1,624
MIPS Technologies, Inc.*................... 370 1,680
MKS Instruments, Inc.*..................... 390 8,911
Monolithic Power Systems, Inc.*............ 220 5,038
Netlogic Microsystems, Inc.*............... 140 4,591
OmniVision Technologies, Inc.*............. 470 7,539
ON Semiconductor Corp.*.................... 2,750 20,542
PDF Solutions, Inc.*....................... 200 956
Pericom Semiconductor Corp.*............... 220 3,749
Photronics, Inc.*.......................... 360 3,816
PLX Technology, Inc.*...................... 250 2,157
PMC-Sierra, Inc.*.......................... 1,840 14,297
RF Micro Devices, Inc.*.................... 2,280 7,684
Rubicon Technology, Inc.*.................. 60 1,324
Rudolph Technologies, Inc.*................ 250 2,540
Semitool, Inc.*............................ 190 1,678
Semtech Corp.*............................. 540 8,769
Sigma Designs, Inc.*....................... 250 4,470
Silicon Image, Inc.*....................... 760 4,537
Silicon Storage Technology, Inc.*.......... 780 2,395
Sirf Technology Holdings, Inc.*............ 520 3,073
Skyworks Solutions, Inc.*.................. 1,380 11,992
Spansion, Inc.*............................ 870 2,871
Standard Microsystems Corp.*............... 200 5,930
Supertex, Inc.*............................ 90 1,931
Techwell, Inc.*............................ 130 1,365
Tessera Technologies, Inc.*................ 410 8,298
Trident Microsystems, Inc.*................ 520 2,257
TriQuint Semiconductor, Inc.*.............. 1,200 7,908
Ultra Clean Holdings, Inc.*................ 160 1,710
Ultratech, Inc.*........................... 200 2,852
Veeco Instruments, Inc.*................... 270 5,084
Volterra Semiconductor Corp.*.............. 180 2,711
Zoran Corp.*............................... 430 5,659
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 338,705
-----------
SOFTWARE 3.5%
ACI Worldwide, Inc.*....................... 320 7,072
Actuate Corp.*............................. 520 2,116
Advent Software, Inc.*..................... 150 5,979
Ansoft Corp.*.............................. 150 4,974
Ansys, Inc.*............................... 670 26,954
ArcSight, Inc.*............................ 60 461
Blackbaud, Inc. ........................... 380 8,926
Blackboard, Inc.*.......................... 250 8,635
Borland Software Corp.*.................... 630 1,115
Bottomline Technologies, Inc.*............. 190 2,024
Commvault Systems, Inc.*................... 310 3,813
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 39
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Concur Technologies, Inc.*................. 370 $12,262
Deltek, Inc.*.............................. 80 982
Double-Take Software, Inc.*................ 70 1,042
Epicor Software Corp.*..................... 500 4,000
EPIQ Systems, Inc.*........................ 270 4,169
FalconStor Software, Inc.*................. 280 2,282
Glu Mobile, Inc.*.......................... 60 281
Guidance Software, Inc.*................... 30 305
i2 Technologies, Inc.*..................... 130 1,365
Informatica Corp.*......................... 750 11,970
Interactive Intelligence, Inc.*............ 110 1,396
Intervoice, Inc.*.......................... 330 2,069
Jack Henry & Associates, Inc. ............. 680 17,871
JDA Software Group, Inc.*.................. 220 4,158
Lawson Software, Inc.*..................... 1,060 8,469
Macrovision Solutions Corp.*............... 460 7,259
Magma Design Automation, Inc.*............. 350 3,266
Manhattan Associates, Inc.*................ 220 5,722
Mentor Graphics Corp.*..................... 770 7,754
MICROS Systems, Inc.*...................... 700 24,955
MicroStrategy, Inc.*....................... 80 7,098
Midway Games, Inc.*........................ 200 514
Monotype Imaging Holdings, Inc.*........... 90 1,319
MSC.Software Corp.*........................ 380 4,628
Net 1 UEPS Technologies, Inc.*............. 360 8,438
NetSuite, Inc.*............................ 60 1,184
Nuance Communications, Inc.*............... 1,290 26,161
OpenTV Corp. -- Class A*................... 810 915
Parametric Technology Corp.*............... 990 17,256
Pegasystems, Inc. ......................... 120 1,268
Progress Software Corp.*................... 350 10,581
PROS Holdings, Inc.*....................... 70 818
QAD, Inc. ................................. 120 912
Quality Systems, Inc. ..................... 150 4,818
Quest Software, Inc.*...................... 590 7,859
Radiant Systems, Inc.*..................... 230 3,103
Renaissance Learning, Inc. ................ 70 984
Secure Computing Corp.*.................... 400 2,648
Smith Micro Software, Inc.*................ 260 2,244
Solera Holdings, Inc.*..................... 230 5,936
Sonic Solutions, Inc.*..................... 190 1,746
Sourcefire, Inc.*.......................... 60 411
SourceForge, Inc.*......................... 580 1,038
SPSS, Inc.*................................ 160 6,758
SuccessFactors, Inc.*...................... 100 1,104
Sybase, Inc.*.............................. 790 23,242
Symyx Technologies, Inc.*.................. 290 2,178
Synchronoss Technologies, Inc.*............ 160 3,339
Take-Two Interactive Software, Inc.*....... 660 17,319
Taleo Corp.*............................... 140 2,730
THQ, Inc.*................................. 580 12,342
TIBCO Software, Inc.*...................... 1,640 12,579
TiVo, Inc.*................................ 840 6,913
Tyler Technologies, Inc.*.................. 340 4,920
Ultimate Software Group, Inc.*............. 210 6,886
Unica Corp.*............................... 80 559
Vasco Data Security International, Inc.*... 230 2,321
Veraz Networks, Inc.*...................... 80 206
Wind River Systems, Inc.*.................. 640 5,274
-----------
TOTAL SOFTWARE 414,195
-----------
SPECIALTY RETAIL 2.2%
Aaron Rents, Inc. -- Class B............... 400 9,960
AC Moore Arts & Crafts, Inc.*.............. 170 1,124
Aeropostale, Inc.*......................... 580 18,438
Asbury Automotive Group, Inc. ............. 220 3,663
Bebe Stores, Inc. ......................... 220 2,198
Big 5 Sporting Goods Corp. ................ 200 1,838
Blockbuster, Inc. -- Class A*.............. 1,650 4,818
Books-A-Million, Inc. ..................... 120 972
Borders Group, Inc. ....................... 500 3,150
Brown Shoe Co., Inc. ...................... 380 6,338
Buckle, Inc. .............................. 120 5,830
Build-A-Bear Workshop, Inc.*............... 140 1,526
Cabela's, Inc.*............................ 330 4,465
Cache, Inc.*............................... 90 1,103
Casual Male Retail Group, Inc.*............ 310 1,339
Cato Corp. -- Class A...................... 260 4,485
Charlotte Russe Holding, Inc.*............. 220 3,494
Charming Shoppes, Inc.*.................... 1,010 5,212
Children's Place Retail Stores, Inc.*...... 190 4,417
Christopher & Banks Corp. ................. 310 3,673
Citi Trends, Inc.*......................... 120 2,537
Collective Brands, Inc.*................... 560 6,927
Conn's, Inc.*.............................. 100 1,763
CSK Auto Corp.*............................ 380 4,533
Dress Barn, Inc.*.......................... 410 5,519
DSW, Inc. -- Class A*...................... 140 2,146
Eddie Bauer Holdings, Inc.*................ 260 1,035
Finish Line, Inc. -- Class A............... 370 2,431
Gander Mountain Co.*....................... 40 196
Genesco, Inc.*............................. 200 4,432
Group 1 Automotive, Inc. .................. 200 5,336
Gymboree Corp.*............................ 250 10,805
Haverty Furniture Cos., Inc. .............. 160 1,461
hhgregg, Inc.*............................. 80 822
Hibbett Sports, Inc.*...................... 270 4,930
Hot Topic, Inc.*........................... 380 2,018
J. Crew Group, Inc.*....................... 340 16,150
Jo-Ann Stores, Inc.*....................... 210 3,977
Jos. A. Bank Clothiers, Inc.*.............. 160 3,906
Lithia Motors, Inc. -- Class A............. 140 1,260
Men's Wearhouse, Inc. ..................... 470 12,516
Midas, Inc.*............................... 120 1,864
Monro Muffler, Inc. ....................... 140 2,310
New York & Co., Inc.*...................... 190 1,206
NexCen Brands, Inc.*....................... 390 1,193
Pacific Sunwear of California, Inc.*....... 600 8,046
PEP Boys-Manny Moe & Jack.................. 340 3,033
Pier 1 Imports, Inc.*...................... 760 5,928
Rent-A-Center, Inc.*....................... 570 12,272
Sally Beauty Holdings, Inc.*............... 810 4,909
Select Comfort Corp.*...................... 400 1,208
Shoe Carnival, Inc.*....................... 80 1,118
Sonic Automotive, Inc. -- Class A.......... 250 5,072
Stage Stores, Inc. ........................ 370 5,824
Stein Mart, Inc. .......................... 230 1,226
Talbots, Inc. ............................. 200 1,606
Tween Brands, Inc.*........................ 210 3,990
Ulta Salon Cosmetics & Fragrance, Inc.*.... 70 990
West Marine, Inc.*......................... 130 650
Wet Seal, Inc.*............................ 730 2,533
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 40
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
Zale Corp.*................................ 380 $7,874
Zumiez, Inc.*.............................. 150 3,142
-----------
TOTAL SPECIALTY RETAIL 258,737
-----------
TEXTILES, APPAREL & LUXURY GOODS 1.2%
Carter's, Inc.*............................ 500 7,070
Cherokee, Inc. ............................ 60 1,740
Columbia Sportswear Co. ................... 120 5,035
Deckers Outdoor Corp.*..................... 110 15,188
FGX International Holdings, Ltd.*.......... 100 1,305
Fossil, Inc.*.............................. 380 13,600
G-III Apparel Group, Ltd.*................. 110 1,622
Heelys, Inc.*.............................. 60 261
Iconix Brand Group, Inc.*.................. 440 7,005
K-Swiss, Inc. -- Class A................... 220 3,223
Kenneth Cole Productions, Inc. -- Class A.. 90 1,732
Lululemon Athletica, Inc.*................. 110 3,407
Maidenform Brands, Inc.*................... 200 2,980
Movado Group, Inc. ........................ 150 3,276
Oxford Industries, Inc. ................... 120 3,335
Perry Ellis International, Inc.*........... 100 2,284
Quiksilver, Inc.*.......................... 1,070 10,411
Skechers U.S.A., Inc. -- Class A*.......... 180 4,257
Steven Madden, Ltd.*....................... 180 3,404
Timberland Co. -- Class A*................. 410 5,986
True Religion Apparel, Inc.*............... 120 2,203
Under Armour, Inc. -- Class A*............. 210 6,999
UniFirst Corp. ............................ 120 5,617
Volcom, Inc.*.............................. 130 2,469
Warnaco Group, Inc.*....................... 400 18,456
Weyco Group, Inc. ......................... 60 1,639
Wolverine World Wide, Inc. ................ 430 12,358
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 146,862
-----------
THRIFTS & MORTGAGE FINANCE 1.1%
Abington Bancorp, Inc. .................... 90 941
Anchor BanCorp Wisconsin, Inc. ............ 170 2,582
Bank Mutual Corp. ......................... 430 4,812
BankAtlantic Bancorp, Inc. -- Class A...... 360 1,109
BankFinancial Corp. ....................... 200 3,208
BankUnited Financial Corp. -- Class A...... 280 1,100
Beneficial Mutual Bancorp, Inc.*........... 310 3,165
Berkshire Hills Bancorp, Inc. ............. 90 2,303
Brookline Bancorp, Inc. ................... 500 5,400
Centerline Holding Co. .................... 440 1,500
Clayton Holdings, Inc.*.................... 100 578
Clifton Savings Bancorp, Inc. ............. 100 1,000
Corus Bankshares, Inc. .................... 340 2,492
Dime Community Bancshares.................. 210 3,921
Downey Financial Corp. .................... 180 2,545
Federal Agricultural Mortgage Corp. ....... 90 2,880
First Busey Corp. ......................... 220 4,363
First Financial Holdings, Inc. ............ 100 2,401
First Niagara Financial Group, Inc. ....... 910 13,131
First Place Financial Corp. ............... 140 1,750
FirstFed Financial Corp.*.................. 120 1,834
Flagstar Bancorp, Inc. .................... 380 2,326
Flushing Financial Corp. .................. 180 3,514
Franklin Bank Corp.*....................... 220 341
Imperial Capital Bancorp, Inc. ............ 50 754
K-Fed Bancorp.............................. 40 446
Kearny Financial Corp. .................... 180 1,958
NASB Financial, Inc. ...................... 30 854
NewAlliance Bancshares, Inc. .............. 980 13,191
Northwest Bancorp, Inc. ................... 160 4,128
Ocwen Financial Corp.*..................... 310 1,531
Oritani Financial Corp.*................... 100 1,517
PFF Bancorp, Inc. ......................... 190 718
Provident Financial Services, Inc. ........ 530 8,178
Provident New York Bancorp................. 350 4,676
Rockville Financial, Inc. ................. 80 1,086
Roma Financial Corp. ...................... 90 1,397
TierOne Corp. ............................. 160 1,434
Triad Guaranty, Inc.*...................... 100 228
TrustCo Bank Corp. ........................ 650 5,674
United Community Financial Corp. .......... 230 1,888
ViewPoint Financial Group.................. 100 1,625
Wauwatosa Holdings, Inc.*.................. 80 975
Westfield Financial, Inc. ................. 90 875
WSFS Financial Corp. ...................... 50 2,541
-----------
TOTAL THRIFTS & MORTGAGE FINANCE 124,870
-----------
TOBACCO 0.2%
Alliance One International, Inc.*.......... 820 5,043
Universal Corp. ........................... 230 14,764
Vector Group, Ltd. ........................ 270 4,652
-----------
TOTAL TOBACCO 24,459
-----------
TRADING COMPANIES & DISTRIBUTORS 0.6%
Applied Industrial Technologies, Inc. ..... 370 8,939
Beacon Roofing Supply, Inc.*............... 380 4,047
BlueLinx Holdings, Inc. ................... 100 518
Electro Rent Corp. ........................ 150 2,027
H&E Equipment Services, Inc.*.............. 150 1,967
Houston Wire & Cable Co. .................. 130 2,432
Interline Brands, Inc.*.................... 240 4,644
Kaman Corp. -- Class A..................... 210 5,691
Lawson Products, Inc. ..................... 40 1,015
Nuco2, Inc.*............................... 130 3,596
Rush Enterprises, Inc.*.................... 290 4,675
TAL International Group, Inc. ............. 140 3,389
Textainer Group Holdings, Ltd. ............ 60 1,026
UAP Holding Corp. ......................... 440 17,120
Watsco, Inc. .............................. 200 9,074
-----------
TOTAL TRADING COMPANIES & DISTRIBUTORS 70,160
-----------
WATER UTILITIES 0.2%
American States Water Co. ................. 150 5,253
Cadiz, Inc.*............................... 100 1,896
California Water Service Group............. 170 6,579
Consolidated Water Co., Ltd. .............. 120 2,844
SJW Corp. ................................. 130 3,909
Southwest Water Co. ....................... 210 2,339
-----------
TOTAL WATER UTILITIES 22,820
-----------
WIRELESS TELECOMMUNICATION SERVICES 0.2%
Centennial Communications Corp.*........... 210 1,273
FiberTower Corp.*.......................... 890 1,353
ICO Global Communications Holdings, Ltd.*.. 890 3,320
iPCS, Inc. ................................ 150 4,563
Rural Cellular Corp.*...................... 110 4,888
Syniverse Holdings, Inc.*.................. 240 3,770
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 41
RYDEX 2x RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) (continued) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
MARKET
SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
USA Mobility, Inc.*........................ 200 $1,428
Virgin Mobile USA, Inc. -- Class A*........ 240 996
-----------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 21,591
-----------
TOTAL COMMON STOCKS
(Cost $10,413,954) 10,084,380
-----------
<Caption>
FACE MARKET
AMOUNT VALUE
- ----------------------------------------------------------------------
REPURCHASE AGREEMENTS 6.8%
State Street Bank & Trust Co., 1.850%,
dated 04/30/08, at 1.850% to be
repurchased at $804,041 on 05/01/08
collateralized by $815,000 FHLB at
5.700% due 04/03/28 with a value of
$822,131................................ 804,000 $804,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $804,000) 804,000
-----------
UNITED STATES TREASURY BILLS 4.7%
United States Treasury Bill 0.757%, due
05/01/08(a)+............................ 550,000 550,000
-----------
TOTAL UNITED STATES TREASURY BILLS
(Cost $550,000) 550,000
-----------
TOTAL INVESTMENTS 97.3%
(Cost $11,767,954) 11,438,380
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--2.7% 305,618
-----------
NET ASSETS--100.0% $11,743,998
- ----------------------------------------------------------------------
<Caption>
UNREALIZED
CONTRACTS GAIN
- ----------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED
June 2008 Russell 2000(R) Index Mini
Futures Contracts (Aggregate Market
Value of Contracts $6,385,750).......... 89 $137,605
-----------
<Caption>
UNITS
- ----------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENTS PURCHASED
July 2008 Russell 2000(R) Index Swap,
Terminating 07/01/08* (Notional Market
Value $7,216,480)....................... 10,076 $331,089
- ----------------------------------------------------------------------
</Table>
* Non-Income Producing Security.
** Price return based on S&P Russell 2000(R) Index +/- financing at a
variable rate.
(a) Zero coupon bond--Interest rate represents current yield to maturity.
+ Security or portions of the security was pledged as collateral for a swap
agreement.
FHLB--Federal Home Loan Bank
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 42
RYDEX INVERSE 2X RUSSELL 2000(R) ETF
SCHEDULE OF INVESTMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
<Table>
<Caption>
FACE MARKET
AMOUNT VALUE
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS 85.2%
State Street Bank & Trust Co., 1.850%, dated
04/30/08, to be repurchased at $17,774,913 on
05/01/08 collateralized by $17,975,000 FHLB at
5.70% due 04/03/08 with a value of $18,132,281.. 17,774,000 $17,774,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $17,774,000) 17,774,000
-----------
UNITED STATES TREASURY BILLS 4.8%
United States Treasury Bill
0.757%, due 05/01/08(a)+..................... 1,000,000 1,000,000
-----------
TOTAL UNITED STATES TREASURY BILLS
(Cost $1,000,000) 1,000,000
-----------
TOTAL INVESTMENTS 100.0%
(Cost $18,774,000) 18,774,000
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES--10.0% 2,091,191
-----------
NET ASSETS--100.0% $20,865,191
- ---------------------------------------------------------------------------
</Table>
<Table>
<Caption>
UNREALIZED
CONTRACTS LOSS
- -------------------------------------------------------------------------
FUTURES CONTRACTS SOLD SHORT
June 2008 Russell 2000 Index Mini Futures
Contracts (Aggregate Market Value of Contracts
$5,453,000)..................................... 76 $(171,398)
---------
</Table>
<Table>
<Caption>
UNITS
- ------------------------------------------------------------------------
EQUITY INDEX SWAP AGREEMENTS SOLD SHORT
July 2008 Russell 2000(R) Index Swap,
Terminating 07/01/08* (Notional Market Value
$7,178,000)..................................... 10,023 $(551,849)
-----------
May 2008 Russell 2000(R) Index Swap, Terminating
05/20/08* (Notional Market Value $28,864,238)... 40,303 (1,346,905)
-----------
(Total Notional Market Value $36,042,238) $(1,898,754)
- ------------------------------------------------------------------------
</Table>
* Price return based on S&P Russell 2000(R) Index +/- financing at a
variable rate.
(a) Zero coupon bond--Interest rate represents current yield to maturity.
+ Security or portions of the security was pledged as collateral for a swap
agreement sold short.
FHLB--Federal Home Loan Bank
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 43
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX 2X RYDEX RYDEX 2X
S&P 500 INVERSE 2X S&P MIDCAP
ETF S&P 500 ETF 400 ETF
----------- ----------- -----------
ASSETS
Investment Securities at Market Value*....... $29,760,380 $ 6,548,947 $ 2,824,167
Repurchase Agreements* (Note 2).............. 3,597,000 42,844,000 412,000
Cash......................................... 848 922 214
Segregated Cash for Swaps.................... 1,466,000 8,565,000 100,000
Margin Deposit for Futures Contracts......... 1,263,600 518,400 92,800
Receivables:
Dividends.................................. 21,755 -- 1,563
Interest................................... 185 2,202 21
Fund Shares Sold........................... 3,151,657 -- --
Equity Index Swap Settlement (Note 2)...... -- 407,614 56,191
Variation Margin on Futures Contracts (Note
2)...................................... -- 47,160 --
----------- ----------- -----------
TOTAL ASSETS............................ 39,261,425 58,934,245 3,486,956
----------- ----------- -----------
LIABILITIES
Payables:
Investments Purchased...................... 4,978,615 -- 199,853
Equity Index Swap Settlement (Note 2)...... 57,967 -- --
Variation Margin on Futures Contracts (Note
2)...................................... 114,953 -- 5,800
Accrued Management Fees.................... 16,540 34,689 1,795
Accrued Trustee Fees....................... 271 797 32
----------- ----------- -----------
TOTAL LIABILITIES....................... 5,168,346 35,486 207,480
----------- ----------- -----------
NET ASSETS................................... $34,093,079 $58,898,759 $ 3,279,476
=========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital.............................. $34,504,474 $61,458,864 $ 5,622,478
Undistributed Net Investment Income.......... 19,235 84,772 1,687
Accumulated Net Realized Gain/(Loss) on
Investment Securities, Futures and Swaps... (1,516,818) (2,731,338) (2,530,777)
Net Unrealized Appreciation/(Depreciation) on
Investment Securities, Futures and Swaps... 1,086,188 86,461 186,088
----------- ----------- -----------
NET ASSETS................................... $34,093,079 $58,898,759 $ 3,279,476
=========== =========== ===========
Shares Outstanding (Unlimited Shares
Authorized), No Par Value.................. 550,000 700,000 50,000
=========== =========== ===========
Net Asset Value, Offering Price and
Repurchase Price Per Share................. $ 61.99 $ 84.14 $ 65.59
=========== =========== ===========
*Total Cost of Investments................... $33,284,140 $49,392,947 $ 3,279,790
=========== =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 44
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX INVERSE RYDEX 2X RYDEX INVERSE
2X S&P MIDCAP RUSSELL 2X RUSSELL
400 ETF 2000(R) ETF 2000(R) ETF
------------- ----------- -------------
ASSETS
Investment Securities at Market Value*............ $ -- $10,634,380 $ 1,000,000
Repurchase Agreements* (Note 2)................... 6,727,000 804,000 17,774,000
Cash.............................................. 74 495 750
Segregated Cash for Swaps......................... 1,285,000 140,000 3,572,000
Margin Deposit for Futures Contracts.............. 35,200 373,800 319,200
Receivables:
Dividends....................................... -- 5,425 --
Interest........................................ 346 41 913
Equity Index Swap Settlement (Note 2)........... -- 322,436 --
Variation Margin on Futures Contracts (Note 2).. 2,200 -- 29,640
---------- ----------- -----------
TOTAL ASSETS................................. 8,049,820 12,280,577 22,696,503
---------- ----------- -----------
LIABILITIES
Payables:
Investments Purchased........................... -- 495,124 --
Equity Index Swap Settlement (Note 2)........... 246,876 -- 1,816,781
Variation Margin on Futures Contracts (Note 2).. -- 34,710 --
Accrued Management Fees......................... 4,714 6,627 14,067
Accrued Trustee Fees............................ 157 118 464
---------- ----------- -----------
TOTAL LIABILITIES............................ 251,747 536,579 1,831,312
---------- ----------- -----------
NET ASSETS........................................ $7,798,073 $11,743,998 $20,865,191
========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in Capital................................... $5,656,548 $14,088,507 $20,848,655
Undistributed Net Investment Income............... 10,489 8,628 37,923
Accumulated Net Realized Gain/(Loss) on Investment
Securities, Futures and Swaps................... 2,465,460 (2,492,257) 2,048,765
Net Unrealized Appreciation/(Depreciation) on
Investment Securities, Futures and Swaps........ (334,424) 139,120 (2,070,152)
---------- ----------- -----------
NET ASSETS........................................ $7,798,073 $11,743,998 $20,865,191
========== =========== ===========
Shares Outstanding (Unlimited Shares Authorized),
No Par Value.................................... 100,000 200,000 250,000
========== =========== ===========
Net Asset Value, Offering Price and Repurchase
Price Per Share................................. $ 77.98 $ 58.72 $ 83.46
========== =========== ===========
*Total Cost of Investments........................ $6,727,000 $11,767,954 $18,774,000
========== =========== ===========
</Table>
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 45
STATEMENTS OF OPERATIONS For the Period Ended
April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX 2X RYDEX INVERSE RYDEX 2X
S&P 500 2X S&P 500 S&P MIDCAP
ETF* ETF* 400 ETF*
----------- ------------- -----------
INVESTMENT INCOME
Dividends....................................... $ 106,436 $ -- $ 34,930
Interest........................................ 31,410 396,345 17,884
----------- ----------- -----------
Total Income................................. 137,846 396,345 52,814
----------- ----------- -----------
EXPENSES
Management Fee.................................. 46,318 109,541 21,212
Trustee Fee..................................... 443 1,048 203
----------- ----------- -----------
Total Expenses............................... 46,761 110,589 21,415
----------- ----------- -----------
Net Investment Income............................. 91,085 285,756 31,399
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net Realized Gain/(Loss) From:
Investment Securities........................... (476,928) -- (904,043)
Futures Contracts............................... (522,815) 1,051,533 (107,458)
Swap Contracts.................................. (517,075) (3,782,871) (1,519,276)
----------- ----------- -----------
Net Realized Loss............................ (1,516,818) (2,731,338) (2,530,777)
Net Change in Unrealized
Appreciation/(Depreciation) On:
Investment Securities........................... 73,240 -- (43,623)
Futures Contracts............................... 1,070,403 (317,848) 169,652
Swap Contracts.................................. (57,455) 404,309 60,059
----------- ----------- -----------
Net Change in Unrealized Appreciation on
Investments..................................... 1,086,188 86,461 186,088
----------- ----------- -----------
Net Realized and Unrealized Loss on Investments... (430,630) (2,644,877) (2,344,689)
----------- ----------- -----------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................... $ (339,545) $(2,359,121) $(2,313,290)
=========== =========== ===========
</Table>
* The Fund commenced operations on November 5, 2007.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 46
STATEMENTS OF OPERATIONS For the Period Ended
April 30, 2008 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX INVERSE RYDEX 2X RYDEX INVERSE
2X S&P MIDCAP RUSSELL 2000(R) 2X RUSSELL
400 ETF* ETF* 2000(R) ETF*
------------- --------------- -------------
INVESTMENT INCOME
Dividends..................................... $ -- $ 54,259 $ --
Interest...................................... 170,682 24,677 268,283
Foreign Taxes Withheld........................ -- (16) --
---------- ----------- -----------
Total Income............................... 170,682 78,920 268,283
---------- ----------- -----------
EXPENSES
Management Fee................................ 36,304 29,863 68,232
Trustee Fees.................................. 348 285 653
---------- ----------- -----------
Total Expenses............................. 36,652 30,148 68,885
---------- ----------- -----------
Net Investment Income........................... 134,030 48,772 199,398
---------- ----------- -----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS
Net Realized Gain/(Loss) From:
Investment Securities......................... -- (587,153) --
Futures Contracts............................. 1,294,033 (227,579) 214,480
Swap Contracts................................ 1,171,427 (1,677,525) 1,834,285
---------- ----------- -----------
Net Realized Gain/(Loss)................... 2,465,460 (2,492,257) 2,048,765
Net Change in Unrealized
Appreciation/(Depreciation) On:
Investment Securities......................... -- (329,574) --
Futures Contracts............................. (39,508) 137,605 (171,398)
Swap Contracts................................ (294,916) 331,089 (1,898,754)
---------- ----------- -----------
Net change in Unrealized
Appreciation/(Depreciation) on Investments.... (334,424) 139,120 (2,070,152)
---------- ----------- -----------
Net Realized and Unrealized Gain/(Loss) on
Investments................................... 2,131,036 (2,353,137) (21,387)
---------- ----------- -----------
NET INCREASE/DECREASE IN NET ASSETS
RESULTING
FROM OPERATIONS.......................... $2,265,066 $(2,304,365) $ 178,011
========== =========== ===========
</Table>
* The Fund commenced operations on November 5, 2007.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 47
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX 2X RYDEX INVERSE 2X
S&P 500 ETF S&P 500 ETF
----------------- -----------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 5, 2007* NOVEMBER 5, 2007*
THROUGH THROUGH
APRIL 30, 2008 APRIL 30, 2008
(UNAUDITED) (UNAUDITED)
----------------- -----------------
OPERATIONS
Net Investment Income.............................. $ 91,085 $ 285,756
Net Realized Loss.................................. (1,516,818) (2,731,338)
Net Change in Unrealized Appreciation on
Investments..................................... 1,086,188 86,461
----------- -----------
Net Decrease in Net Assets Resulting From
Operations...................................... (339,545) (2,359,121)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income.............................. (71,850) (200,984)
----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold.......................... 34,504,474 61,458,864
Value of Shares Reinvested......................... -- --
Value of Shares Repurchased........................ -- --
----------- -----------
Net Increase in Net Assets Resulting From Share
Transactions.................................... 34,504,474 61,458,864
----------- -----------
Increase in Net Assets.......................... 34,093,079 58,898,759
NET ASSETS--BEGINNING OF PERIOD...................... -- --
----------- -----------
NET ASSETS--END OF PERIOD(1)......................... $34,093,079 $58,898,759
=========== ===========
(1) Including Undistributed Net Investment Income.... $ 19,235 $ 84,772
=========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................................ 550,000 700,000
Shares Reinvested.................................. -- --
Shares Repurchased................................. -- --
Shares Outstanding, Beginning of Period............ -- --
----------- -----------
Shares Outstanding, End of Period.................. 550,000 700,000
=========== ===========
</Table>
* The Fund commenced operations on November 5, 2007.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 48
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX 2X RYDEX INVERSE 2X
S&P MIDCAP S&P MIDCAP
400 ETF 400 ETF
----------------- -----------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 5, 2007* NOVEMBER 5, 2007*
THROUGH THROUGH
APRIL 30, 2008 APRIL 30, 2008
(UNAUDITED) (UNAUDITED)
----------------- -----------------
OPERATIONS
Net Investment Income.............................. $ 31,399 $ 134,030
Net Realized Gain/(Loss)........................... (2,530,777) 2,465,460
Net Change in Unrealized
Appreciation/(Depreciation) on Investments...... 186,088 (334,424)
----------- -----------
Net Increase/(Decrease) in Net Assets Resulting
From Operations................................. (2,313,290) 2,265,066
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income.............................. (29,712) (123,541)
----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold.......................... 11,250,000 15,406,205
Value of Shares Reinvested......................... -- --
Value of Shares Repurchased........................ (5,627,522) (9,897,697)
----------- -----------
Net Increase in Net Assets Resulting From Share
Transactions.................................... 5,622,478 5,508,508
----------- -----------
VOLUNTARY CONTRIBUTION FROM ADVISOR (Note 3)......... -- 148,040
----------- -----------
Increase in Net Assets.......................... 3,279,476 7,798,073
NET ASSETS--BEGINNING OF PERIOD...................... -- --
----------- -----------
NET ASSETS--END OF PERIOD(1)......................... $ 3,279,476 $ 7,798,073
=========== ===========
(1) Including Undistributed Net Investment Income.... $ 1,687 $ 10,489
=========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................................ 150,000 200,000
Shares Reinvested.................................. -- --
Shares Repurchased................................. (100,000) (100,000)
Shares Outstanding, Beginning of Period............ -- --
----------- -----------
Shares Outstanding, End of Period.................. 50,000 100,000
=========== ===========
</Table>
* The Fund commenced operations on November 5, 2007.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 49
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX 2X RYDEX INVERSE 2X
RUSSELL 2000(R) ETF RUSSELL 2000(R) ETF
------------------- -------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 5, 2007* NOVEMBER 5, 2007*
THROUGH THROUGH
APRIL 30, 2008 APRIL 30, 2008
(UNAUDITED) (UNAUDITED)
------------------- -------------------
OPERATIONS
Net Investment Income.............................. $ 48,772 $ 199,398
Net Realized Gain/(Loss)........................... (2,492,257) 2,048,765
Net Change in Unrealized
Appreciation/(Depreciation) on Investments...... 139,120 (2,070,152)
----------- -----------
Net Increase/(Decrease) in Net Assets Resulting
From Operations................................. (2,304,365) 178,011
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income.............................. (40,144) (161,475)
----------- -----------
SHAREHOLDER TRANSACTIONS
Proceeds From Shares Sold.......................... 16,906,096 29,402,741
Value of Shares Reinvested......................... -- --
Value of Shares Repurchased........................ (2,817,589) (8,554,086)
----------- -----------
Net Increase in Net Assets Resulting From Share
Transactions.................................... 14,088,507 20,848,655
----------- -----------
Increase in Net Assets.......................... 11,743,998 20,865,191
NET ASSETS--BEGINNING OF PERIOD...................... -- --
----------- -----------
NET ASSETS--END OF PERIOD(1)......................... $11,743,998 $20,865,191
=========== ===========
(1) Including Undistributed Net Investment Income.... $ 8,628 $ 37,923
=========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares Sold........................................ 250,000 350,000
Shares Reinvested.................................. -- --
Shares Repurchased................................. (50,000) (100,000)
Shares Outstanding, Beginning of Period............ -- --
----------- -----------
Shares Outstanding, End of Period.................. 200,000 250,000
=========== ===========
</Table>
* The Fund commenced operations on November 5, 2007.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 50
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX INVERSE
RYDEX 2X 2X
S&P 500 ETF S&P 500 ETF
--------------- ---------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 5, NOVEMBER 5,
2007* 2007*
THROUGH THROUGH
APRIL 30, 2008 APRIL 30, 2008
(UNAUDITED) (UNAUDITED)
--------------- ---------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF PERIOD.............. $75.00 $75.00
------- -------
Net Investment Income**............................. 0.41 0.77
Net Realized and Unrealized Gain/(Loss) on
Investments***.................................... (13.04) 8.91
------- -------
TOTAL FROM INVESTMENT OPERATIONS.................... (12.63) 9.68
------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income............................... (0.38) (0.54)
------- -------
NET ASSET VALUE AT END OF PERIOD.................... $61.99 $84.14
======= =======
TOTAL RETURN****.................................... (16.85)% 12.92%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's Omitted)......... $34,093 $58,899
RATIO TO AVERAGE NET ASSETS OF:
Expenses............................................ 0.70%***** 0.70%*****
Net Investment Income............................... 1.37%***** 1.82%*****
Portfolio Turnover Ratio+........................... 14% --%
</Table>
* The Fund commenced operations on November 5, 2007.
** Based on average shares outstanding.
*** The amounts shown at this caption for a share outstanding may not
accord with the change in aggregate gains and losses on investments for
the fiscal period because of the timing of sales and repurchases of
Fund shares in relation to fluctuating market values for the Fund.
**** Total investment return is calculated assuming an initial investment
made at the net asset value at the beginning of the period,
reinvestment of all dividends and distribution at net asset value
during the period, and redemption on the last day of the period.
Transaction fees are not reflected in the calculation of total
investment return. Total investment return calculated for a period of
less than one year is not annualized.
***** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
Portfolio turnover rate is calculated without regard to instruments
having a maturity of less than one year from acquisition or derivative
instruments (including swap agreements and futures contracts). The
portfolio turnover rate can be high and volatile due to the sales and
purchases of fund shares during the period.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 51
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX 2X S&P RYDEX INVERSE 2X
MIDCAP 400 ETF S&P MIDCAP 400 ETF
----------------- ------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 5, 2007* NOVEMBER 5, 2007*
THROUGH THROUGH
APRIL 30, 2008 APRIL 30, 2008
(UNAUDITED) (UNAUDITED)
----------------- ------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF PERIOD........... $75.00 $75.00
------ ------
Net Investment Income**.......................... 0.33 1.06
Net Realized and Unrealized Gain/(Loss) on
Investments***................................. (9.41) 1.46
------ ------
TOTAL FROM INVESTMENT OPERATIONS................. (9.08) 2.52
------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income............................ (0.33) (1.02)
------ ------
VOLUNTARY CONTRIBUTION FROM ADVISOR (Note 3)..... -- 1.48
------ ------
NET ASSET VALUE AT END OF PERIOD................. $65.59 $77.98
====== ======
TOTAL RETURN****................................. (12.06)% 5.20%(1)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's Omitted)...... $3,279 $7,798
RATIO TO AVERAGE NET ASSETS OF:
Expenses......................................... 0.70%***** 0.70%*****
Net Investment Income............................ 1.03%***** 2.57%*****
Portfolio Turnover Ratio+........................ 98% --%
</Table>
(1) If the Advisor had not made a voluntary capital contribution to the
Fund, the total return would have been 3.21%.
* The Fund commenced operations on November 5, 2007.
** Based on average shares outstanding.
*** The amounts shown at this caption for a share outstanding may not
accord with the change in aggregate gains and losses on investments for
the fiscal period because of the timing of sales and repurchases of
Fund shares in relation to fluctuating market values for the Fund.
**** Total investment return is calculated assuming an initial investment
made at the net asset value at the beginning of the period,
reinvestment of all dividends and distribution at net asset value
during the period, and redemption on the last day of the period.
Transaction fees are not reflected in the calculation of total
investment return. Total investment return calculated for a period of
less than one year is not annualized.
***** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
Portfolio turnover rate is calculated without regard to instruments
having a maturity of less than one year from acquisition or derivative
instruments (including swap agreements and futures contracts). The
portfolio turnover rate can be high and volatile due to the sales and
purchases of fund shares during the period.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 52
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<Table>
<Caption>
RYDEX 2X RYDEX INVERSE 2X
RUSSELL 2000(R) ETF RUSSELL 2000(R) ETF
------------------- -------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 5, 2007* NOVEMBER 5, 2007*
THROUGH THROUGH
APRIL 30, 2008 APRIL 30, 2008
(UNAUDITED) (UNAUDITED)
------------------- -------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE AT BEGINNING OF PERIOD.............. $75.00 $75.00
------- -------
Net Investment Income**............................. 0.34 0.87
Net Realized and Unrealized Gain/(Loss) on
Investments***.................................... (16.30) 8.27
------- -------
TOTAL FROM INVESTMENT OPERATIONS.................... (15.96) 9.14
------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income............................... (0.32) (0.68)
------- -------
NET ASSET VALUE AT END OF PERIOD.................... $58.72 $83.46
======= =======
TOTAL RETURN****.................................... (21.29)% 12.17%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at End of Period (000's Omitted)......... $11,744 $20,865
RATIO TO AVERAGE NET ASSETS OF:
Expenses............................................ 0.70%***** 0.70%*****
Net Investment Income............................... 1.14%***** 2.03%******
Portfolio Turnover Ratio+........................... 8% --%
</Table>
* The Fund commenced operations on November 5, 2007.
** Based on average shares outstanding.
*** The amounts shown at this caption for a share outstanding may not
accord with the change in aggregate gains and losses on investments for
the fiscal period because of the timing of sales and repurchases of
Fund shares in relation to fluctuating market values for the Fund.
**** Total investment return is calculated assuming an initial investment
made at the net asset value at the beginning of the period,
reinvestment of all dividends and distribution at net asset value
during the period, and redemption on the last day of the period.
Transaction fees are not reflected in the calculation of total
investment return. Total investment return calculated for a period of
less than one year is not annualized.
***** Annualized.
+ Portfolio turnover is not annualized and does not include securities
received or delivered from processing creations or redemptions.
Portfolio turnover rate is calculated without regard to instruments
having a maturity of less than one year from acquisition or derivative
instruments (including swap agreements and futures contracts). The
portfolio turnover rate can be high and volatile due to the sales and
purchases of fund shares during the period.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT 53
NOTES TO FINANCIAL STATEMENTS (Unaudited) April 30, 2008
- --------------------------------------------------------------------------------
1. ORGANIZATION
Rydex ETF Trust (the "Trust") is an open-end, management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act"). The Trust was organized as a Delaware statutory trust on November 22,
2002. As of April 30, 2008, the Trust offers of twenty three portfolios, each of
which represent a separate series of beneficial interest in the Trust (each a
"Fund" and collectively, the "Funds"). The financial statements herein relate to
the following Funds: Rydex 2x S&P 500 ETF, Rydex Inverse 2x S&P 500 ETF, Rydex
2x S&P MidCap 400 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, Rydex 2x Russell
2000(R) ETF, and Rydex Inverse 2x Russell 2000(R) ETF. The Funds commenced
operations on November 5, 2007.
The Funds' investment objective is to provide investment results that match the
performance of a specific benchmark, before fees and expenses, on a daily basis.
For Rydex 2x S&P 500 ETF, Rydex 2x S&P MidCap 400 ETF, and Rydex 2x Russell
2000(R) ETF (each, a "Leveraged Fund" and collectively, the "Leveraged Funds"),
each Fund's benchmark is 200% of the performance of an index representing
publicly traded equity securities (the "Underlying Index"). For Rydex Inverse 2x
S&P 500 ETF, Rydex Inverse 2x S&P MidCap 400 ETF, and Rydex Inverse 2x Russell
2000(R) ETF (each, a "Leveraged Inverse Fund" and collectively, the "Leveraged
Inverse Funds"), each Fund's benchmark is 200% of the inverse (opposite)
performance of its Underlying Index. The Underlying Index for Rydex 2x S&P 500
ETF and Rydex Inverse 2x S&P 500 ETF is the S&P 500 Index. The Underlying Index
for the Rydex 2x S&P MidCap 400 ETF and the Rydex Inverse 2x S&P MidCap 400 ETF
is the S&P MidCap 400 Index. The Underlying Index for the Rydex 2x Russell
2000(R) ETF and the Rydex Inverse 2x Russell 2000(R) ETF is the Russell 2000(R)
Index.
The Leveraged Funds seek to achieve their objective by investing in equity
securities contained in the Underlying Index, and leveraged derivative
instruments, such as equity index swaps, futures contracts, and options on
securities, futures contracts, and stock indices. The Leveraged Inverse Funds
seek to achieve their objective by engaging in short sales of securities and
investing in leveraged derivative instruments, such as equity index swaps,
futures contracts, and options on securities, futures contracts, and stock
indices.
The Funds operate as index funds and are not actively managed. Adverse
performance of a security in the Funds' portfolio will ordinarily not result in
the elimination of the security from the Funds' portfolio.
The Funds issue and redeem shares on a continuous basis, at net asset value,
only in aggregations of 50,000 shares called a "Creation Unit". Creation Units
are issued and redeemed principally in-kind for securities included in the
Underlying Index.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosures at the date of the financial statements and
accompanying notes and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Management believes that the
estimates utilized in preparing the Funds' financial statements are reasonable
and prudent; however, actual results could differ from these estimates.
A. SECURITY VALUATION
Securities listed on a domestic securities exchange are valued based on the last
sale price as of the close of regular trading hours on the New York Stock
Exchange or, in the absence of recorded sales, are valued at the most recent bid
price. Securities for which the primary market is the National Association of
Securities Dealers Automated Quotations National Market System ("NASDAQ") are
valued at the NASDAQ Official Closing Price. The Funds invest in money market
mutual funds, which are valued at their NAV.
Investments for which market quotations are not readily available are fair
valued as determine in good faith by Rydex Investments under the direction of
the Board of Trustees using methods established or ratified by the Board of
Trustees. These methods include, but are not limited to: (i) general information
as to how these securities and assets trade, (ii) in connection with futures
contracts and options thereupon, and other derivative investments, information
as to how (a) these contracts and other derivative investments trade in the
futures or other derivative markets, respectively, and (b) the securities
underlying these contracts and other derivative investments trade in the cash
market, and (iii) other information and considerations, including current values
in related-markets.
Financial futures contracts are valued based on the unrealized gain or loss on
the contracts that is determined by the last quoted sales price, usually as of
4:00 PM on the valuation date on the exchange on which they trade.
Domestic equity index swap agreements entered into by a Fund are valued based on
the unrealized gain or loss on the agreements that is determined by marking the
agreements to the relevant index at the close of the NYSE, usually 4:00 PM or,
if there is an afternoon trade, to the "fill". The swaps' market values are then
adjusted to include dividends accrued, financing charges and/or interest
associated with the swap agreements.
Short-term securities are valued at amortized cost, which approximates market
price. Certain U.S. Government and Agency Obligations are traded on a discount
basis; the interest rates shown on the Schedule of Investments reflect the
current yield to maturity based on amortized cost as of the date of this report.
Other securities bear interest at the rates shown, payable at fixed dates
through
SEMI-ANNUAL REPORT 54
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
maturity. The Funds may also purchase American Depository Receipts, U.S.
Government securities, and enter into repurchase agreements.
B. SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are recorded as of trade date. Realized gains and losses
from portfolio fund transactions are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date, net of foreign tax
withholdings. Interest income is recorded on the accrual basis. Advisory fees,
which are directly identifiable to a specific Fund, are applied to that Fund.
Trustee fees which cannot be attributed to a Fund are allocated in such a manner
as deemed equitable, taking into consideration the relative net assets of the
Fund.
C. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with financial institutions. In a
repurchase agreement, a Fund buys a security and the seller simultaneously
agrees to repurchase the security on a specified future date at an agreed-upon
price. The repurchase price reflects an agreed-upon interest rate during the
time the Fund's money is invested in the security. Because the security
constitutes collateral for the repurchase obligation, a repurchase agreement can
be considered a collateralized loan. The Funds follows certain procedures
designed to minimize the risks inherent in such agreements. These procedures
include effecting repurchase transactions only with large, well-capitalized and
well-established financial institutions whose condition will be continually
monitored by Rydex Global Advisors, which acts as the Funds' investment advisor
(the "Advisor"). In addition, the value of the collateral underlying the
repurchase agreement will always be at least equal to the repurchase price,
including any accrued interest earned on the repurchase agreement. In the event
of a default or bankruptcy by a selling financial institution, the Funds will
seek to liquidate such collateral. However, the exercising of the Funds right to
liquidate such collateral could involve certain costs or delays and, to the
extent that proceeds from any sale upon a default of the obligation to
repurchase were less than the repurchase price, the Funds could suffer a loss.
It is the current policy of the Funds not to invest in repurchase agreements
that do not mature within seven days if any such investment, together with any
other illiquid assets held by the Funds, amounts to more than 15% of the Funds
net assets. The investments of the Funds in repurchase agreements, at times, may
be substantial when, in the view of the Advisor, liquidity or other
considerations so warrant.
D. FUTURES CONTRACTS
The Funds may enter into stock index futures contracts and options on such
futures contracts. Futures contracts are contracts for delayed delivery of
securities at a specified futures delivery date and at a specific price. Upon
entering into a contract, a Fund deposits and maintains as collateral such
initial margin as required by the exchange on which the transaction is effected.
Pursuant to the contract, the fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin and are recorded by the Fund
as unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. There are
several risks in connection with the use of futures contracts. Risks may be
caused by an imperfect correlation between movements in the price of the
instruments and the price of the underlying securities. In addition, there is
the risk that a Fund may not be able to enter into a closing transaction because
of an illiquid secondary market.
E. SWAP AGREEMENTS
The Funds may enter into domestic equity index swap agreements, which are over-
the-counter contracts in which one party agrees to make periodic payments based
on the change in market value of a specified equity index, in return for
periodic payment based on a fixed or variable interest rate. Swap agreements are
used to obtain exposure to an equity or market without owning or taking physical
custody of securities. The swap agreements are marked-to-market daily based upon
quotations from market makers and the change, if any, is recorded as unrealized
gain or loss. Payments received or made as a result of an agreement or
termination of the agreement are recognized as realized gains or losses. There
are several risks associated with the use of swap agreements that are different
from those associated with ordinary portfolio securities transactions, due to
the fact they could be considered illiquid. Although the Trust will not enter
into any swap agreement unless the Advisor believes that the other party to the
transaction is creditworthy, the Funds bear the risk of loss of the amount
expected to be received under a swap agreement in the event of the default or
bankruptcy of the agreement counterparty.
F. COLLATERAL
In conjunction with the use of short sales, futures and swap agreements, the
Funds are required to maintain collateral in various forms. The Funds use, where
appropriate, depending on the financial instrument utilized and the broker
involved, margin deposits at the broker, cash and/or securities segregated at
the custodian bank, discount notes, or the repurchase agreements allocated to
each Fund.
SEMI-ANNUAL REPORT 55
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
G. FEDERAL INCOME TAXES
The Funds policy is to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of the
taxable income and capital gains, if any to the shareholders within the
allowable time limits. Therefore, no provision for Federal income taxes is
required.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments for in-kind redemptions, income reclassifications from real
estate investment trusts ("REITs") and losses deferred due to wash sales.
For the period ended April 30, 2008, the Funds realized no net capital gains
resulting from in-kind redemptions and other transactions. Because gains from
in-kind redemptions are not taxable to the Funds, and are not distributed to
existing Fund shareholders, the gains are reclassified from accumulated net
realized gains to paid-in-capital at the end of the Funds tax year. These
reclassifications have no effect on net assets or net asset value per share. Had
there been in-kind net capital gains for the period ended April 30, 2008 are
disclosed in the Fund's Statement of Operations.
At April 30, 2008, the Funds had no capital loss carryforwards which may be
utilized to offset any net realized capital gains as the Funds are in their
first year of operation.
H. DIVIDENDS AND DISTRIBUTIONS
The Funds declare and pay dividends from net investment income and distribute
from net realized capital gains at least annually.
I. RISK AND UNCERTAINTIES
The Trust invests in various investments which are exposed to risk, such as
market risk. Due to the level of risk associated with certain investments it is
at least reasonably possible that changes in the values of investment securities
will occur in the near term and that such changes could materially affect
amounts reported in the financial statements.
The risks inherent in the use of futures contracts and swap agreements, include
i) adverse changes in the value of such instruments; ii) imperfect correlation
between the price of the instruments and movements in the price of the
underlying securities, indices, or futures contracts; III) the possible absence
of a liquid secondary market for any particular instrument at any time; and iv)
the potential of counterparty default. The Funds have established strict
counterparty credit guidelines and enter into transactions only with financial
institutions of investment grade or better.
J. NEW ACCOUNTING PRONOUNCEMENTS
On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet a more-likely-than-not threshold
would be recorded as a tax expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date.
Management evaluated the implications of FIN 48 and determined that all tax
positions meet the "more-likely than not" threshold. As a result, the financial
statements have not been impacted by the adoption of FIN 48. However,
management's conclusions regarding FIN 48 are subject to review and adjustment
at a later date based on factors including, but not limited to, further
implementation guidance expected from FASB, and on-going analysis of tax laws,
regulation, and interpretations thereof.
In September, 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements ("SFAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact, if any, the
adoption of SFAS 157 will have on the Funds' financial statements. Management
does not anticipate SFAS 157 will have a material impact on the Funds' financial
statements.
In March, 2008, Statement of Financial Accounting Standards No. 161,
"Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161")
was issued and is effective for fiscal years and interim periods beginning after
November 15, 2008. SFAS 161 requires enhanced disclosures about Funds'
derivative and hedging activities. Management is currently evaluating the
impact, if any, the adoption of SFAS 161 will have on the Funds' financial
statement disclosures.
3. ADVISORY, ADMINISTRATION AND OTHER TRANSACTIONS WITH AFFILIATES
The Advisor determines the composition of the portfolio of securities that must
be delivered in exchange for the issuance of Creation Units and periodically
adjusts the composition of the portfolio of the Funds to conform to changes in
the composition of the relevant
SEMI-ANNUAL REPORT 56
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
index. For these services, the Advisor receives an advisory fee at the annual
rate shown below of the average daily net assets of the Funds.
<Table>
<Caption>
ADVISORY FEE
------------
Rydex 2x S&P 500 ETF................................................. 0.70%
Rydex Inverse 2x S&P 500 ETF......................................... 0.70%
Rydex 2x S&P MidCap 400 ETF.......................................... 0.70%
Rydex Inverse 2x S&P MidCap 400 ETF.................................. 0.70%
Rydex 2x Russell 2000(R) ETF......................................... 0.70%
Rydex Inverse 2x Russell 2000(R) ETF................................. 0.70%
</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 and trustee fees or expenses and extraordinary
expenses.
Under an Administration Agreement, State Street Bank and Trust Company (the
"Administrator") provides various administrative and accounting services for the
maintenance and operations of the Funds. Under a Custodian Agreement with the
Trust, the Administrator maintains cash, securities and other assets of the
Trust and the Funds in separate accounts for each fund, keeps all necessary
accounts and records, and provides other services. The Administrator is
required, upon the order of the Trust, to deliver securities held by the
Custodian and to make payments for securities purchased by the Trust for the
Funds. Pursuant to a Transfer Agency and Service Agreement with the Trust, the
Administrator acts as a transfer agent for the Trust's authorized and issued
shares of beneficial interest, and as dividend disbursing agent of the Trust.
The Advisor compensates the Administrator directly for the foregoing services.
The Funds have adopted a Distribution Plan (the "Plan") that allows the Funds to
pay distribution fees to Rydex Distributors, Inc. (the "Distributor") and other
firms that provide distribution services ("Service Providers"). If a Service
Provider provides distribution services, the Funds will pay distribution fees to
the Distributor at an annual rate not to exceed 0.25% of average daily net
assets, pursuant to Rule 12b-1 of the 1940 Act. The Distributor will, in turn,
pay the Service Provider out of its fees. No such fee is currently charged to
the Funds.
The Advisor made a voluntary capital contribution to the Fund during the period
ended April 30, 2008 of $148,040 to offset a loss on a portfolio investment.
4. CAPITAL
At April 30, 2008, there were an unlimited number of no par value shares of
beneficial interest authorized. There is a minimum transaction fee per
transaction to those persons purchasing or redeeming Creation Units. An
additional charge of up to three times the standard transaction fee may be
imposed for purchases and redemptions effected outside the National Securities
Clearing Corporation usual clearing process or for cash. Such transactions are
generally permitted on an in-kind basis, with a balancing cash component to
equate the transaction to the net asset value per unit of the Fund on the
transaction date. The minimum transaction fees are:
<Table>
<Caption>
MINIMUM
TRANSACTION FEE
---------------
Rydex 2x S&P 500 ETF............................................... $2,000
Rydex Inverse 2x S&P 500 ETF....................................... 50
Rydex 2x S&P MidCap 400 ETF........................................ 2,000
Rydex Inverse 2x S&P MidCap 400 ETF................................ 50
Rydex 2x Russell 2000(R) ETF....................................... 3,000
Rydex Inverse 2x Russell 2000(R) ETF............................... 50
</Table>
The Administrator has waived the in-kind creation and redemption fees for the
Funds for a period of six months from commencement. The Advisor will reimburse
the Administrator for 50% of the waived creation and redemption fees.
5. INVESTMENT TRANSACTIONS
For the period ended April 30, 2008 the Funds had in-kind contributions and in-
kind redemptions as follows:
<Table>
<Caption>
SUBSCRIPTIONS REDEMPTIONS
------------- -----------
Rydex 2x S&P 500 ETF......................................... 2,292,461 --
Rydex Inverse 2x S&P 500 ETF................................. -- --
Rydex 2x S&P MidCap 400 ETF.................................. -- --
Rydex Inverse 2x S&P MidCap 400 ETF.......................... -- --
Rydex 2x Russell 2000(R) ETF................................. -- --
Rydex Inverse 2x Russell 2000(R) ETF......................... -- --
</Table>
SEMI-ANNUAL REPORT 57
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Purchases and sales of investment securities (excluding short-term investments,
U.S. government and government agency obligations) for the Funds were as
follows:
<Table>
<Caption>
PURCHASES SALES
---------- ---------
Rydex 2x S&P 500 ETF........................................... 56,937,380 2,313,537
Rydex Inverse 2x S&P 500 ETF................................... -- --
Rydex 2x S&P MidCap 400 ETF.................................... 11,424,434 7,602,977
Rydex Inverse 2x S&P MidCap 400 ETF............................ -- --
Rydex 2x Russell 2000(R) ETF................................... 27,915,618 863,719
Rydex Inverse 2x Russell 2000(R) ETF........................... -- --
</Table>
There were no purchases or sales of U.S. government or government agency
obligations for the period ended April 30, 2008.
The identified cost of investments in securities owned by each Fund for federal
income tax purposes was substantially the same as the cost for financial
reporting purposes. Accordingly, gross unrealized appreciation and depreciation
at April 30, 2008 were as follows:
<Table>
<Caption>
GROSS GROSS NET UNREALIZED
IDENTIFIED UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
---------- ------------ ------------ --------------
Rydex 2x S&P 500 ETF............................ 33,284,140 870,582 797,342 73,240
Rydex Inverse 2x S&P 500 ETF.................... 49,392,947 -- -- --
Rydex 2x S&P MidCap 400 ETF..................... 3,279,790 185,788 229,411 (43,623)
Rydex Inverse 2x S&P MidCap 400 ETF............. 6,727,000 -- -- --
Rydex 2x Russell 2000(R) ETF.................... 11,767,954 506,431 836,005 (329,574)
Rydex Inverse 2x Russell 2000(R) ETF............ 18,774,000 -- -- --
</Table>
6. ACQUISITION OF RYDEX INVESTMENTS AND THE DISTRIBUTOR
At the close of business on January 17, 2008, Rydex NV, Inc., comprised of Rydex
Investments, together with several other Rydex entities, was acquired by
Security Benefit Corporation ("Security Benefit"), a financial services firm
that provides a broad variety of financial programs to investors in the advisor,
banking, education, government, institutional, and qualified plan markets (the
"Transaction"). As a result of the Transaction's completion, Rydex Investments
and the Distributor are wholly-owned subsidiaries of Security Benefit. While the
Transaction has no material impact on the Funds or their shareholders, it
resulted in a change of control of Rydex Investments, which in turn caused the
termination of the investment advisory agreement between Rydex Investments and
the Funds.
A new investment advisory agreement between Rydex Investments and the Funds was
approved under substantially the same terms as the previous investment advisory
agreement (the "New Agreement"). This New Agreement was approved by
shareholders, via proxy, and took effect upon the closing of the Transaction.
The Transaction had no impact on the day-to-day operations of Rydex Investments,
the fees payable to Rydex Investments under the New Agreement, or the persons
responsible for the management of the Funds.
SEMI-ANNUAL REPORT 58
SUPPLEMENTAL INFORMATION
- --------------------------------------------------------------------------------
PROXY VOTING INFORMATION
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to securities held in the Funds' portfolios is
available, without charge and upon request, by calling 1-800-820-0888. This
information is also available from the EDGAR database on the SEC's website at
http://www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if
applicable, during the most recent 12-month period ended June 30, is also
available, without charge and upon request, by (i) calling 1-800-820-0888; or
accessing the Trust's Form N-PX on the SEC's website at, http://www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULES INFORMATION
The Trust files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q; which are available on
the SEC's website at http://www.sec.gov. The Trust's Forms N-Q may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC, and that
information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. Copies of the portfolio holdings are also available to
shareholders, without charge and upon request, by calling 1-800-820-0888.
SEMI-ANNUAL REPORT 59
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
A Board of Trustees oversees all Rydex Investments, in which its members have no
stated term of service, and continue to serve after election until resignation.
The Statement of Additional Information includes further information about Fund
Trustees and Officers, and can be obtained without charge by calling 1-800-820-
0888.
All Trustees and Officers may be reached c/o Rydex Investments, 9601 Blackwell
Rd., Suite 500, Rockville, MD 20850.
TRUSTEES AND OFFICERS
<Table>
<Caption>
NAME, POSITION LENGTH OF SERVICE
AND AS TRUSTEE NUMBER OF FUNDS
YEAR OF BIRTH (YEAR BEGAN) OVERSEEN
- ---------------- ----------------------------------------- ----------------
CARL G. Rydex Series Funds - 2004 149
VERBONCOEUR* Rydex Variable Trust - 2004
Trustee, Rydex Dynamic Funds - 2004
President (1952) Rydex ETF Trust - 2004
</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 Fund Services, Inc., PADCO Advisors, Inc., PADCO Advisors II,
Inc., and Rydex Distributors, Inc. (2003 to present); Executive Vice President
of Rydex Fund Services, Inc. (2000 to 2003); Vice President of Rydex Fund
Services, Inc. and Rydex Distributors, Inc. (1997 to 2000)
<Table>
---------------------
MICHAEL P. Rydex Series Funds - 2005 149
BYRUM* Rydex Variable Trust - 2005
Trustee, Vice Rydex Dynamic Funds - 2005
President and Rydex ETF Trust - 2005
Secretary (1970)
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Chief Investment Officer of Rydex
Investments (2003 to present); Secretary of Rydex Specialized Products, LLC
(2005 to present); Secretary of Rydex Series Funds, Rydex Variable Trust, and
Rydex Dynamic Funds (2004 to present); Vice President of Rydex Series Funds
(1997 to present); Vice President of Rydex Variable Trust (1998 to present);
Vice President of Rydex Dynamic Funds (1999 to present); Vice President of Rydex
ETF Trust (2002 to present); President and Trustee of Rydex Capital Partners
SPhinX Fund (2003 to 2006); President of Rydex Global Advisors (2004 to
present); Chief Operating Officer of Rydex Global Advisors and Rydex
Distributors, Inc. (2003 to 2004)
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
<Table>
<Caption>
NAME, POSITION LENGTH OF SERVICE
AND AS TRUSTEE NUMBER OF FUNDS
YEAR OF BIRTH (YEAR BEGAN) OVERSEEN
- ---------------- ----------------------------------------- ----------------
JOHN O. DEMARET Rydex Series Funds - 1997 141
Trustee, Rydex Variable Trust - 1998
Chairman of the Rydex Dynamic Funds - 1999
Board (1940) Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Retired
<Table>
---------------------
COREY A. Rydex Series Funds - 1993 141
COLEHOUR Rydex Variable Trust - 1998
Trustee (1945) Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Senior Vice President of
Marketing/Co-Owner, Schield Management Company
<Table>
---------------------
J. KENNETH Rydex Series Funds - 1995 141
DALTON Rydex Variable Trust - 1998
Trustee (1941) 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 141
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, Rydex Series Funds - 2005 141
JR. Rydex Variable Trust - 2005
Trustee (1960) Rydex Dynamic Funds - 2005
Rydex ETF Trust - 2005
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: President, Global Trends
Investments
<Table>
---------------------
PATRICK T. Rydex Series Funds - 1997 141
MCCARVILLE Rydex Variable Trust - 1998
Trustee (1942) Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Founder and Chief Executive
Officer, Par Industries, Inc.
<Table>
---------------------
ROGER SOMERS Rydex Series Funds - 1993 141
Trustee (1944) Rydex Variable Trust - 1998
Rydex Dynamic Funds - 1999
Rydex ETF Trust - 2003
</Table>
PRINCIPAL OCCUPATIONS DURING PAST FIVE YEARS: Owner, Arrow Limousine
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT 60
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS
<Table>
<Caption>
NAME, POSITION AND PRINCIPAL OCCUPATIONS DURING PAST FIVE
YEAR OF BIRTH YEARS
- ----------------------------------------- -----------------------------------------
NICK BONOS* Chief Financial Officer of Rydex
Vice President and Treasurer (1963) Specialized Products, LLC (2005 to
present); Vice President and Treasurer of
Rydex Series Funds, Rydex Variable Trust,
Rydex Dynamic Funds, and Rydex ETF Trust
(2003 to present); Senior Vice President
of Rydex Fund Services, Inc. (2003 to
present); Vice President and Treasurer of
Rydex Capital Partners SPhinX Fund (2003
to 2006); Vice President of Accounting of
Rydex Fund Services, Inc. (2000 to 2003)
JOANNA M. HAIGNEY* Chief Compliance Officer Rydex Series
Chief Compliance Officer and Secretary Funds, Rydex Assistant Variable Trust,
(1966) and Rydex Dynamic Funds (2004 to
present); Assistant Secretary of Rydex
Series Funds, Rydex Variable Trust, and
Rydex Dynamic Funds (2000 to present);
Assistant Secretary of Rydex ETF Trust
(2002 to present); Vice President of
Compliance of Rydex Fund Services, Inc.
(2000 to present); Secretary of Rydex
Capital Partners SphinX Fund (2003 to
2006)
JOSEPH ARRUDA* Assistant Treasurer of Rydex Series
Assistant Treasurer (1966) Funds, Rydex Variable Trust, Rydex
Dynamic Funds, Rydex ETF Trust (2006);
Vice President of Rydex Fund Services,
Inc. (2004 to present); Director of
Accounting of Rydex Fund Services, Inc.
(2003 to 2004); Vice President of Mutual
Funds, State Street Bank & Trust (2000 to
2003)
PAULA BILLOS* Controller of Rydex Series Funds, Rydex
Controller (1974) Variable Trust, Rydex Dynamic Funds,
Rydex ETF Trust (2006); Director of Fund
Administration of Rydex Fund Services,
Inc. (2001 to present)
</Table>
* Trustees and Officers of the Funds are deemed to be "interested persons" of
the Trust, within the meaning of Section 2(a)(19) of the 1940 Act, inasmuch as
this person is affiliated with the Advisor.
[RYDEX INVESTMENTS LOGO] [GRAPHIC]
9601 Blackwell Road o Suite 500 o Rockville, MD 20850
www.rydexinvestments.com o 800.820.0888
ETF-SEMI-ANN-0408X1008
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based on their evaluation on July 2, 2008, the President (principal
executive officer) and the Treasurer (principal financial officer) of the Rydex
ETF Trust (the "Trust") believe that there were no significant deficiencies in
the design or operation of the internal controls of the Trust or Rydex Global
Advisors ("RGA"), the investment advisor and manager of the Trust, and State
Street Bank and Trust Company (the "Administrator"), the administrator of the
Trust, or Rydex Distributors, Inc. ("RD"), which acts as distributor for the
Trust, including disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940) which would have adversely affected
the ability of the Trust, the Administrator or RGA on behalf of the Trust, to
record, process, summarize, and report the subject matter contained in this
Report, and the President and Treasurer of the Trust have identified no material
weaknesses in such internal controls on behalf of the Trust.
There was no fraud, whether or not material, involving officers or employees of
RGA, the Administrator, RD or the Trust who have a significant role in the
Trust's internal controls, including disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come
to the attention of the advisor or the officers of the Trust, including its
President and Treasurer.
(b) There were no significant changes in the Trust's and RGA's internal controls
over financial reporting, including disclosure controls and procedures (as
defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred
during the second fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(2) Separate certifications by the President (principal executive officer)
and Treasurer (principal financial officer) of the registrant as required by
Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.
(b) A certification by the registrant's President (principal executive officer)
and Treasurer (principal financial officer) as required by Rule 30a-2(b) under
the Act (17 CFR 270.30a-2(b)) is attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Rydex ETF Trust
By (Signature and Title)* /s/ Carl G. Verboncoeur
----------------------------------------
Carl G. Verboncoeur, President
Date July 2, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Carl G. Verboncoeur
----------------------------------------
Carl G. Verboncoeur, President
Date July 2, 2008
By (Signature and Title)* /s/ Nick Bonos
----------------------------------------
Nick Bonos, Vice President and Treasurer
Date July 2, 2008
* Print the name and title of each signing officer under his or her
signature.