Company Press Release

NEW YORK, NY--(Aug 4, 2011) - Rydex, a leading provider of ETF and alternative investments, today announced the launch of two new equal weight (EW) ETFs, Rydex S&P SmallCap 600® Equal Weight ETF and Rydex S&P MidCap 400® Equal Weight ETF.

The addition of the two new ETFs brings Rydex's total number of EW ETFs to 18 and total number of exchange traded products to 36, with assets over $9 billion. The ETF line-up at Rydex, with the exception of CurrencyShares®, is known in the marketplace as RydexShares®. Rydex is the leader in equal weight ETFs -- offering the widest choice of equal weight products and the most equal weight ETFs in the industry.

Rydex S&P Midcap 400® Equal Weight ETF (EWMD) and Rydex S&P SmallCap 600 Equal Weight ETF (EWSM) offer broad exposure to the companies in the S&P MidCap 400 Equal Weight Index (EWI) and the S&P SmallCap 600® (EWI), respectively. Both EW ETFs invest in the same stocks as their cap weight versions, have equal exposure to each stock and are rebalanced quarterly.

"Rydex has been a pioneer in the ETF space since the 2003 launch of our flagship ETF Rydex S&P 500® Equal Weight ETF (RSP)," said Jim King, ETF portfolio manager at Rydex|SGI. "The new ETFs provide investors access to two additional ways to employ an equal weight approach in portfolio construction, allowing them to increase performance potential and diversify holdings," he said.

"Rydex was an early innovator in the equal weight ETF market," said Craig Lazarra, senior director for U.S. Equities at S&P Indices. "S&P is pleased to see Rydex's equal weight product line growing, and excited to partner with them on this natural extension of their business."

Equal weight indices are typically comprised of the same constituents as their cap-weighted equivalents but each component is equally weighted -- which provides the following potential benefits:

Performance Potential. An equal weight approach reduces the bias towards the largest companies within a particular cap-weighted strategy. The smaller companies may help an equal weight strategy outperform when large caps are not in favor, though when large stocks are in favor, equal weight strategies may underperform.

Diversification. While diversification does not assure a profit nor eliminate the risk of experiencing investment losses, it may help reduce concentration risk and provide more balanced exposure across market capitalizations, sectors and other broad risk factors.

Disciplined rebalancing. As portfolios are regularly rebalanced back to equal-weight, they take profits on outperforming components of the index-such as specific companies or sectors. This rebalancing may help balance risk factors and provide enhanced risk control.

About Rydex


Rydex manages approximately $26 billion in assets -- including more than $9.5 billion in exchange traded product assets. Rydex offers institutional investors and financial intermediaries a broad spectrum of traditional and nontraditional investment options that span four distinct disciplines -- fundamental alpha (actively managed equity and fixed-income), alternative strategies, target beta strategies and ETFs. For more information call 800.820.0888.

Rydex S&P MidCap 400® Equal Weight ETF and Rydex S&P SmallCap 600® Equal Weight ETF are subject to risks and may not be suitable for all investors. The funds is subject to the risk that unanticipated early closings of the NYSE Arca, Inc. (the "Exchange") may result in the funds' inability to buy or sell securities or other financial instruments on that day. In certain circumstances, it may be difficult for the funds to purchase and sell particular investments within a reasonable time at a fair price. Investments in securities and derivatives, in general, are subject to market risks that may cause their prices to fluctuate over time. An investment in the funds may lose money. Unlike many investment companies, the funds are not actively "managed." This means that, based on market and economic conditions, the funds' performance could be lower than other types of mutual funds that may actively shift their portfolio assets to take advantage of market opportunities or to lessen the impact of a market decline. Tracking error risk refers to the risk that the Advisor may not be able to cause the funds' performance to match or correlate to that of the funds' underlying index, either on a daily or aggregate basis. Tracking error risk may cause the funds' performance to be less than you expect. Shares may trade below their net asset value ("NAV"). The NAV of shares will fluctuate with changes in the market value of the funds' holdings. In addition, although the funds' shares are currently listed on NYSE Arca, Inc. (the "Exchange"), there can be no assurance that an active trading market for shares will develop or be maintained.

The funds are subject to the risk that medium-capitalization or small-cap stocks may underperform other segments of the equity market or the equity market as a whole. The funds are considered nondiversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single security could cause greater fluctuations in the value of fund shares than would occur in a more diversified fund. See prospectus for more details.

For more complete information regarding Rydex|SGI funds, call 800.258.4332 or visit www.rydexsgi.com for a prospectus and a summary prospectus (if available). Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. The fund's prospectus and its summary prospectus (if available) contains this and other information about the fund. Please read the prospectus and summary prospectus (if available) carefully before you invest or send money.

"Standard & Poor's," "S&P," "S&P 500," "Standard & Poor's 500," "500," "S&P MidCap 400," and "S&P SmallCap 600" are trademarks of The Standard & Poor's, LLC and have been licensed for use by Rydex|SGI and its affiliates. The Products are not sponsored, endorsed, sold or promoted by Standard and Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Products.

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.


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