The industry’s first alternatively-weighted ETF continues to make a compelling case for incorporating equal weight investment strategies as part of an overall asset allocation strategy. As of May 12, 2010, Rydex S&P Equal Weight ETF (RSP) outperformed the market capitalization-weighted S&P 500⁽¹⁾ Index by 16.97% since the beginning of last year — sporting a 40.82% return compared to the S&P 500^®‘s return of 23.85%.⁽²⁾ Since its inception in 2003, RSP has returned 9.32% versus the S&P 500^®‘s 5.71% for the same time period.⁽²⁾ With approximately $2 billion in assets, the fund has experienced more than 200% asset growth since the beginning of 2009.⁽³⁾

“Compared to its cap-weighted counterparts, RSP has benefited from increased exposure to the smaller, more nimble companies within the S&P 500^® which tend to outperform during periods of stock market recovery,” says Carl Resnick, managing director, Rydex|SGI.

Benchmarked to the S&P Equal Weight Index (S&P EWI), RSP provides equal exposure to each of the 500 stocks within the S&P 500^®, ensuring that smaller cap names are weighted as heavily as market giants therefore eliminating the large-cap bias of traditional capitalization-weighted index products. The fund rebalances on a quarterly basis to maintain its equal weight status, offering an inherent rebalancing of gains and an opportunity for enhanced diversification.

“Although there are periods when a cap-weighted approach may do better depending on market conditions, equal weighting tends to outperform over time,” says Resnick. “Investors seeking to diversify their predominately cap-weighted portfolios may benefit from a combined cap-weight/equal weight approach to investing.”

RSP launched in April 2003 as Rydex|SGI’s flagship ETF. Today the firm has approximately $6.3 billion in exchange traded assets under management, and offers a diverse suite of exchange traded products, which offer exposure to broad market, sector, style and currency investment strategies.

⁽¹⁾“Standard & Poor’s^®,” “S&P” and “S&P 500^®,” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Rydex|SGI and its affiliates. Rydex S&P Equal Weight ETF is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in Rydex S&P Equal Weight ETF. ⁽²⁾Source data used: FactSet as of 5/12/2010. ⁽³⁾Assets as of 5/21.10. Composition is subject to change.

Performance displayed represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Returns reflect the reinvestment of all dividends. Current performance may be lower or higher than the performance data quoted. For up-to-date fund performance, including performance current to the most recent month end, visit our web site at http://www.rydex-sgi.com/. For additional information, see the fund’s prospectus. ETFs are subject to third party transaction fees/commissions. Net asset value (NAV) is calculated by subtracting total liabilities from total assets, then dividing by the number of shares outstanding. Market close is the last price at which shares are traded. Fund shares may trade at, above or below NAV.

⁽¹⁾Partial year returns are cumulative, not annualized. Performance results are short-term and may not provide an adequate basis for evaluating the performance potential of the fund over varying market conditions or economic cycles. ⁽²⁾The fund has adopted a distribution (12b-1) plan pursuant to which the fund may bear an annual 12b-1 fee of up to 0.25%. However, no such fee is currently charged to the fund and no such fees will be charged prior to 3/01/2011. ⁽³⁾Source: Fundstation. Performance is for illustrative purposes. The index is unmanaged and is not available for direct investment. ⁽⁴⁾Returns are for the period 4/24/03-3/31/10 (since inception of Rydex S&P Equal Weight ETF).

About SGI | Security Global Investors^SM and Rydex|SGI
SGI|Security Global Investors manages approximately $21 billion in assets⁽⁵⁾, and offers institutional investors and financial intermediaries a broad spectrum of traditional and nontraditional investment options that span five distinct disciplines — actively managed specialty fixed-income, value, growth and global equity strategies, as well as quantitative investment management solutions. For more information call 800.820.0888.

⁽⁵⁾Assets as of 5/21/10.

The Rydex S&P Equal Weight ETF may not be suitable for all investors. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. The elimination of the bias toward large-cap companies in the fund also lessens the impact of large-cap gains as compared to those reflected in funds benchmarked to the S&P 500 Index. Please see the prospectus for more details.

The funds are distributed by Rydex Distributors, Inc. (RDI). Security Global Investors^SM is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc. SGI and RDI are affiliates and are subsidiaries of Security Benefit.

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