ETFessentials - Trading Characteristics

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Trading Characteristics
ETF PRICING

Overview

NAV and
Market Price

Discount or Premium

Arbitrage keeps
the Price Right

Intraday
Indicative Value

One of the more complex characteristics of exchange traded funds (ETFs) is their pricing. Unlike most mutual funds, which can be purchased or redeemed only at an end-of-day closing price, ETFs can be traded on stock exchanges all day long—much like stocks. ETFs are priced continuously during normal trading hours, so you can get a price at which to buy or sell your fund when the market is open. However, ETFs have a wider variety of pricing terms—such as net asset value, market price, bid price, ask price and intraday indicative value. It’s essential to understand these terms when considering an investment in ETFs.

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.

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.