Fund Description

The fund was incepted in August 2001 and is managed by Rydex Global Advisors Inc. The fund seeks to provide investment results that correlate to the performance of the S&P MidCap 400 Index for mid-cap securities. The fund invests principally in securities of companies included on the S&P MidCap 400 Index and in leveraged instruments, such as equity swaps agreements, futures contracts and options on securities, futures contracts and stock indices. The fund's investment advisor attempts to consistently apply leverage to increase the fund's exposure to 150% of its benchmark. The fund holds U.S. government securities or cash equivalents to collateralize these futures and options contracts. The fund may also enter into repurchase agreements. Dividends and capital gains are distributed annually.