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Trading Expense Calculator
The Trading Expense Calculator will help you compare the potential costs of using ETFs and no-load mutual funds.

The calculator is designed for active investors to determine whether ETFs or mutual funds' costs are more suitable. (Some mutual funds are sold with a front-end or back-end load. These types of funds are not designed for active trading. This calculator is appropriate for comparison of ETFs and no-load funds.) In addition to the expense ratio, this calculator incorporates other factors that may affect costs:

Number of round trips per year or average holding period: Since you have to pay a commission/transaction cost each time you buy or sell an ETF (and the same may apply to mutual funds), transaction costs and trading frequency should be considered.
Cost per transaction
Trading price spread: Because ETFs are traded on the exchange, they can be affected by bid and ask prices. The wider the spread between those two prices, the more costly it is to trade.

There are many differences between ETFs and mutual funds. Consult your financial advisor to find out which product is appropriate for your investment goals. The Trading Expense Calculator may help you determine the difference in cost based on your trading frequency.

Remember though that cost structure is only one difference between mutual funds and ETFs. There are other differences, including but not limited to:

	Mutual Fund	Exchange Traded Fund
Fees	Generally higher operating expenses than ETFs. Some mutual funds may charge redemption fees.	Generally lower annual expenses than mutual funds. You must pay a commission each time you buy or sell an ETF.
Trading	Does not trade on an exchange. Can be bought or sold only at "net asset value," which is normally calculated once a day after the close of trading. At Rydex, however, there are some funds whose NAV is calculated twice a day.	Trades on an exchange. Can be bought whenever the exchange is open. Must go through a brokerage firm. The market price may be different than the underlying value (you may end up buying at a premium or selling at a discount). Can be affected by bid and asking price. The wider the spread between those two prices, the more costly it is for the investor.
Tax Consequences	Shareholders' redemptions can force a fund manager to sell securities in order to raise money, which can result in taxable capital gains distribution affecting remaining shareholders.	Due to ETFs' unique creation and redemption process, securities are generally acquired and disposed of via in-kind transfers that do not trigger capital gains that would need to be distributed to investors.

Getting Started

Enter estimated sum of money you intend to invest
Enter estimated number of ETF round trip trades
Enter average period you intend to hold an ETF or a mutual fund (number of buy/sell x average holding period ≤ 365)
As needed, enter the ETF’s assumptions:

Transaction cost – enter total commission cost
Expense ratio – enter the ETF’s expense ratio as stated in the prospectus
Average share price – estimated average price per ETF share
Spread – the estimated difference between bid and ask prices (for indication of the spread, check the current trading quote of the ETF)

As needed, enter the mutual fund assumptions:
1. Estimated transaction/commission cost, if applicable (does not take a load into account)
2. Expense ratio – enter the mutual fund’s expense ratio as stated in the prospectus

Explanatory Notes

To use the calculator effectively, consider the explanatory notes listed below. The Rydex Trading Expense Calculator:

Assumes 365 days in a year
Considers a minimum holding period of one day
Presumes that the average holding period multiplied by the number of round trips cannot exceed 365
Looks at costs over the course of a year

Inverse and leveraged ETFs may not be suitable for all investors. The more an ETF invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. Inverse ETFs involve certain risks, which include increased volatility due to the ETFs’ possible use of short sales of securities and derivatives, such as options and futures. The ETFs’ use of derivatives, such as futures, options and swap agreements, may expose the ETFs’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. Short-selling involves increased risks and costs. You risk paying more for a security than you received from its sale. Leveraged and inverse ETFs seek to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. Because the ETFs seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those ETFs that use leverage as part of their investment strategy, may prevent an ETF from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse ETFs’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse ETFs’ holdings consistent with their strategies, as frequently as daily. For those ETFs that consistently apply leverage, the value of the ETF’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

Not FDIC Insured No Bank Guarantee May Lose Value

For more complete information regarding the funds click here for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund’s prospectus contains this and other information about the fund. Read the prospectus carefully before you invest or send money.

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.