Rydex Inverse 2x S&P 500 ETF (the Fund) seeks to provide investment results that will match 200% of the inverse performance of the S&P 500 Index (the Index) on a daily basis. The Index is a capitalization-weighted index consisting of 500 common stocks, which are chosen by the Standard & Poor’s Corporation (S&P) on a statistical basis. The Fund employs as its investment strategy a program of engaging in short sales of securities, and investing in leveraged derivative instruments, such as equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. On a day-to-day basis, the Fund holds the United States Government securities or cash equivalents to collateralize its short sales and derivative positions. The Fund’s investment advisor is PADCO Advisors II, Inc., which operates under the name Rydex Investments.