Diversification neither assures a profit nor eliminates the risk
of experiencing investment losses.
Inverse and leveraged Funds are not suitable
for all investors. These Funds should be utilized only by
investors who (a) understand the risks associated with the use of
leverage, (b) understand the consequences of seeking daily
leveraged investment results, (c) understand the risk of shorting,
and (d) intend to actively monitor and manage their investments.
The more a Fund invests in leveraged instruments, the more the
leverage will magnify any gains or losses on those investments.
Inverse Funds involve certain risks, which include increased
volatility due to the Funds' possible use of short sales of
securities and derivatives, such as options and futures. The Funds'
use of derivatives, such as futures, options and swap agreements,
may expose the Funds' shareholders to additional risks that they
would not be subject to if they invested directly in the securities
underlying those derivatives. Short-selling involves increased
risks and costs. You risk paying more for a security than you
received from its sale. Leveraged and inverse Funds seek to provide
investment results that match the performance of a specific
benchmark, before fees and expenses, on a daily basis. Because the
Funds seek to track the performance of their benchmark on a daily
basis, mathematical compounding, especially with respect to those
Funds that use leverage as part of their investment strategy, may
prevent a fund from correlating with the monthly, quarterly, annual
or other period performance of its benchmark. Due to the
compounding of daily returns, leveraged and inverse Funds' returns
over periods other than one day will likely differ in amount and
possibly direction from the benchmark return for the same period.
For those Funds that consistently apply leverage, the value of the
fund's shares will tend to increase or decrease more than the value
of any increase or decrease in its benchmark index. The Funds
rebalance their portfolios on a daily basis, increasing exposure in
response to that day's gains or reducing exposure in response to
that day's losses. Daily rebalancing will impair a fund's
performance if the benchmark experiences volatility. Investors
should monitor their leveraged and inverse Funds' holdings
consistent with their strategies, as frequently as daily. For more
on these and other risks, please read the prospectus.
Read the fund's prospectus and summary
prospectus (if available) carefully before investing. It contains
the fund's investment objectives, risks, charges, expenses and
other information, which should be considered carefully before
investing. Obtain a prospectus and summary prospectus (if
available) at www.rydex-sgi.com or call
800.820.0888.
Rydex|SGI funds are distributed by Rydex
Distributors, LLC (RDL). Security Investors, LLC (SI) is a
registered investment advisor, and does business as Security Global
Investors® and Rydex
Investments. SI and RDL are affiliates and are subsidiaries of
Security Benefit Corporation, which is wholly owned by Guggenheim
SBC Holdings, LLC, a special purpose entity managed by an affiliate
of Guggenheim Partners, LLC, a diversified financial services firm
with more than $100 billion in assets under supervision.