ETFessentials - Product Characteristics

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Product Characteristics
ETF OVERVIEW

Overview

ETFs vs.
Mutual Fund

Potential
Benefits of ETFs

How to
Use ETFs

Are ETFs Right
for Your Portfolio

What Is an Exchange Traded Fund (ETF)?
ETFs combine many of the benefits of an index mutual fund with the flexibility of stocks. Like mutual funds, ETFs enable you to invest in a pool of securities in one transaction. And similar to stocks, ETFs are listed on a stock exchange so you purchase them through a brokerage account. ETFs offer stock-like trading features enabling you to trade throughout the day, purchase on margin, use limit and stop orders and even short-sell.

ETFs 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. Most investors will also incur customary brokerage commissions when buying or selling shares of an ETF. •Investments in securities and derivatives, in general, are subject to market risks that may cause their prices to fluctuate over time. •ETF Shares may trade below their net asset value (“NAV”). The NAV of shares will fluctuate with changes in the market value of an ETF’s holdings. In addition, there can be no assurance that an active trading market for shares will develop or be maintained.

There are special risks associated with margin investing. Investors may be called upon to deposit additional cash or securities if their account value decreases. This strategy may not be suitable for all investors.

Short selling involves increased risks and costs. You risk paying more for a security than you received from its sale. This strategy may not be suitable for all investors.

Securities are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

RydexShares™ are distributed by Rydex Distributors, LLC (RDL), an affiliate of Rydex SGI.

Not FDIC Insured No Bank Guarantee May Lose Value

For more complete information regarding the funds, call 800.820.0888 or click here 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. A 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.

The funds are distributed by Rydex Distributors, LLC (RDL). Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC (GP), which includes Guggenheim Partners Asset Management, LLC (GPAM) and Security Investors, LLC (SI), the investment advisors to the referenced funds. Rydex Distributors, LLC, is affiliated with GP, GPAM and SI.