THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION THAT SUPPLEMENTS
INFORMATION CONTAINED IN THE RYDEX ETF TRUST PROSPECTUSES LISTED ABOVE (THE
"PROSPECTUSES") AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUSES.
Effective immediately, the "Portfolio Management" section in each Prospectus is
deleted and replaced with the following:
PORTFOLIO MANAGEMENT
Mike Byrum, President and Chief Investment Officer ("CIO") of Rydex Investments,
leads the Portfolio Department. Mr. Byrum's senior management team, called the
Investment Leadership Team ("ILT"), consists of five investment professionals
that are responsible for overseeing different functions within the Portfolio
Department. In addition to Mr. Byrum, those members include Michael Dellapa as
the Director of Alternative Investment Strategies, Douglas Holmes as the
Director of Stock Selection and Asset Allocation, David Reilly as the head of
Portfolio Strategies, and Stephen Sachs as the Director of Trading. The role of
the ILT is to set the overall policies of the Portfolio Department with respect
to investment strategies and business development. The remainder of the
Portfolio Department reports to the members of the ILT, and consists of a team
of approximately 15 investment professionals that focus on research, trading,
and implementing the portfolios.
On a day-to-day basis the following four individuals are jointly and primarily
responsible for the management of the Funds.
MICHAEL P. BYRUM, CFA, President and CIO of Rydex Investments - As the CIO, Mr.
Byrum has ultimate responsibility for the management of the Funds. In addition
to generally overseeing all aspects of the management of all of the Rydex Funds,
Mr. Byrum reviews the activities of Messrs. Dellapa, Harder, and Holmes. He has
been associated with Rydex Investments since the Advisor was founded in 1993.
Mr. Byrum was named the President of Rydex Investments in 2004 and has served as
Chief Investment Officer of Rydex Investments since 2000. During this time, he
has played a key role in the development of the firm's investment strategies and
product offerings. As Senior Portfolio Manager, Mr. Byrum was instrumental in
the launch of the OTC, Precious Metals, Government Long Bond 1.2x Strategy,
Inverse Government Long Bond Strategy, Inverse S&P 500 Strategy and Inverse OTC
Strategy Funds, and helped to create the Sector Fund, all of which are offered
in a separate prospectus. He was named Vice President of Portfolio for Rydex
Investments in 1998, and Executive Vice President in 2000. Prior to joining
Rydex Investments, Mr. Byrum worked for Money Management Associates, the
investment adviser for Rushmore Funds, Inc. He holds a degree in finance from
Miami University of Ohio and is a member of the CFA Institute and the Washington
Society of Investment Analysts. Mr. Byrum has co-managed each Fund since its
inception.
MICHAEL J. DELLAPA, CFA, CAIA, Director of Alternative Investment Strategies -
Mr. Dellapa plays a key role in the development of new products and research
processes and systems that enhance the management of all of the Rydex Funds. In
particular, Mr. Dellapa focuses on the management of the
Alternative Investment Funds, including the Absolute Return Strategies Fund and
the Hedged Equity Fund. Mr. Dellapa joined Rydex Investments in 2000 as a
Research Analyst and was promoted to portfolio manager in 2003. During his
tenure as a portfolio manager, he had direct oversight for the Russell 2000(R)
1.5x Strategy, Healthcare, Biotechnology, and Consumer Products Funds. In 2005,
Mr. Dellapa became Director of Investment Research and in 2007 became the
Director of Alternative Investment Strategies. Prior to joining Rydex
Investments, Mr. Dellapa worked as an equity analyst for Invista Capital and
systems analyst for Accenture. He holds an engineering degree from the
University of Maryland and MBA from the University of Chicago. Previously, he
was owner/consultant of Dellapa Consulting Inc. as well as a senior consultant
and an analyst at Andersen Consulting. Mr. Dellapa has co-managed the Rydex S&P
Equal Weight ETF and the Rydex Russell Top 50(R) ETF since September 2005 and
each other Fund since its inception.
RYAN A. HARDER, CFA, Senior Portfolio Manager - Mr. Harder is involved in the
management of all of the Rydex Funds, but focuses particularly on the management
of the Domestic Equity, Domestic Equity-Style, International Equity, Fixed
Income, and Alternative Investment Funds. Mr. Harder joined Rydex Investments in
2004 as an Assistant Portfolio Manager, was promoted to Portfolio Manager in
2005 and has served in his current capacity since 2008. He was instrumental in
the launch of the Absolute Return Strategies, Hedged Equity, High Yield Strategy
and Inverse High Yield Strategy Funds, all of which are offered in a separate
prospectus. Prior to joining Rydex Investments, Mr. Harder served in various
capacities with WestLB Asset Management, including as an Assistant Portfolio
Manager, and worked in risk management at CIBC World Markets. He holds a B.A. in
Economics from Brock University in Ontario, Canada and a Master of Science in
International Securities, Investment and Banking from the ICMA Centre at the
University of Reading in the U.K. Mr. Harder has co-managed each Fund since
March 2008.
DOUGLAS HOLMES, CFA, Director of Stock Selection and Asset Allocation - As the
Director of Stock Selection and Asset Allocation, Mr. Holmes oversees the
development and daily maintenance of the stock selection and asset allocation
methodologies employed by the Rydex Funds. While Mr. Holmes is involved in the
management of all of the Rydex Funds, he focuses on the management of the
Alternative Investment, Essential Portfolio and Sector Funds, all of which are
offered in a separate prospectus. Mr. Holmes first became associated with Rydex
as a consultant in September 2004. In October 2005, Mr. Holmes accepted a
permanent position as the Strategic Advisor and in September 2007 was named the
Director of Stock Selection and Asset Allocation. Mr. Holmes has been a member
of the ILT since its inception. Prior to his association with Rydex, Mr. Holmes
was a 20-year veteran of State Street Global Advisors as the department head of
the US Indexing Department, the US Active Department, and finally the Global
Enhanced Department. He holds a BS degree in mathematics from Northeastern
University. Mr. Holmes has co-managed each Fund since March 2008.
Additional information about the portfolio managers' compensation, other
accounts managed by the portfolio managers, and the portfolio managers'
ownership of securities in the Funds is available in the Funds' Statement of
Additional Information.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
ETF-1-SUP7