SOURCE: Rydex Investments

August 23, 2005 13:31 ET

Rydex S&P Equal Weight ETF Reaches $1 Billion in Assets

Chicago Board Options Exchange Lists Rydex S&P Equal Weight ETF's Options

ROCKVILLE, MD -- (MARKET WIRE) -- August 23, 2005 -- Rydex Investments announced today that Rydex S&P Equal Weight ETF (AMEX: RSP) has reached $1 billion in assets in the two years since its inception in April 2003.

Rydex S&P Equal Weight ETF tracks the S&P Equal Weight Index® (SPXEW), which includes the same stocks as the well-known S&P 500® Index. Unlike the S&P 500, which is capitalization weighted, the SPXEW is equal weighted. Each of the 500 stocks in the index is represented equally, eliminating the higher concentration to individual stocks. S&P estimates the total AUM of the SPXEW to be around $4.6 billion as of 12/31/04, up 95% from the previous year.

"The rapid success of Rydex S&P Equal Weight ETF clearly demonstrates investors' desire for this pioneering investment product -- one which combines the benefits of quality companies of the S&P 500 with the power of periodic rebalancing," said Timothy Meyer, Rydex Investments' ETF business manager. "By lowering the concentration in larger companies, Rydex S&P Equal Weight ETF attempts to evenly capture the results of all constituents in the S&P 500, making it a potentially valuable core holding for an investor's portfolio."

Meyer noted that average annual total returns for the S&P Equal Weight Index® (SPXEW), which Rydex S&P Equal Weight ETF tracks, have exceeded returns for the S&P 500® Index (SPX) over the past one-, three-, five- and 10-year periods. According to data from Standard & Poor's, the SPXEW has average annual returns of 12.4%, 9.3% and 20.21% for the past 10-, five- and three-year periods versus 10%, -1.4% and 12.6% for the SPX. In an effort to meet investor demand for information on its popular ETF products, Rydex also is making available new educational materials about ETFs, including Rydex S&P Equal Weight ETF and Rydex Russell Top 50™ ETF (AMEX: XLG), which was launched in May 2005 and which gives investors exposure to the 50 largest companies in the U.S. by market capitalization. Performance displayed represents past performance which is no guarantee of future results.

In a separate development, the Chicago Board Options Exchange (CBOE) began listing options on Rydex S&P Equal Weight ETF this month. Founded in 1973, the CBOE is the world's largest options marketplace and the creator of listed options in a variety of financial instruments. Of the 172 ETFs listed on exchanges today, less than 50% have options available.

About Rydex S&P Equal Weight ETF

Rydex S&P Equal Weight ETF is an exchange traded fund that tracks the S&P Equal Weight Index (SPXEW), a benchmark that includes the same constituents as the S&P 500 Index. Unlike the S&P 500, which is capitalization weighted, the SPXEW is equal weighted. The index is rebalanced quarterly so that each stock continues to represent 1/500th of the fund's assets.

As an exchange traded fund, Rydex S&P Equal Weight ETF combines the benefits of mutual funds with the flexibility of stocks. It enables investors to purchase a diversified pool of securities in a single transaction; and, since it is listed on the American Stock Exchange, it can be traded like a stock.

The SPXEW was developed by Standard & Poor's in coordination with Rydex Investments and is maintained by Standard & Poor's according to a methodology consistent with the S&P 500 Index.

About Rydex

Rydex Investments, the investment advisor to Rydex Funds, continues to drive change in the financial industry by introducing investment products and services that challenge conventional thinking, empower investors and provide essential new options for uncertain market conditions. Rydex manages $13.6 billion in assets via 51 mutual funds, including two ETFs, as well as a registered fund of hedge funds. For more information, call 800.820.0888 or visit

For more complete information regarding Rydex funds, call 800.820.0888 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.

Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF are subject to risks similar to those of stocks and may not be suitable for all investors. Shares can be bought and sold through a broker, and the selling shareholder may have to pay brokerage commissions in connection with the sale. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Shares may only be redeemed directly from the fund by Authorized Participants via Creation Units. The elimination of the bias toward large-cap companies in Rydex S&P Equal Weight ETF also lessens the impact of large-cap gains as compared to those reflected in the funds benchmarked to the S&P 500 Index. Rydex Russell Top 50 ETF is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity markets as a whole. See the prospectus for more details.

"S&P®," "Standard & Poor's®" and "S&P 500®" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Rydex Investments and its affiliates. Rydex S&P Equal Weight ETF is not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in the fund.

The Russell Top 50™ Index is a trademark of Russell Investment Group and has been licensed for use by Rydex Investments and its affiliates. Neither Russell's publication of the Russell indexes nor its licensing of its trademarks for use in connection with financial products derived from a Russell index in any way suggests or implies a representation or opinion by Russell as to the attractiveness of investment in any securities or other financial products based upon or derived from any Russell index. Russell is not the issuer of any such securities or other financial products and makes no expressed or implied warranties of merchantability or fitness for any particular purpose with respect to any Russell index or any data included or reflected therein, nor as to results to be obtained by any person or any entity from the use of the Russell index or any data included or reflected therein.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).

Rydex Distributors, Inc., an affiliate of Rydex Investments, is the distributor of the Rydex funds.

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