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Reasons for Sector Outperformance

It is important to monitor external factors that may drive the growth of specific sectors. A positive outlook for the general economy certainly helps the broad market, but individual sectors may respond more favorably. Sector rotation tries to capitalize on those sectors that outperform.

The direction of the entire economy is important for particular sectors in the short run. The competitive conditions and economic forces at work in that industry also affect sector-growth prospects. Other key external factors include innovation, consolidation and consumer demand.

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The funds are distributed by Rydex Distributors, Inc. (RDI). Security Global Investors^SM is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc. SGI and RDI are affiliates and are subsidiaries of Security Benefit.