Morningstar Advisor - August/September 2011 - (Page 25)

RYDEX | SGI LONG SHORT COMMODITIES FUND (RYLFX) How to invest in commodities no matter which way the market goes. Commodities have a reputation for being volatile. Which is why a long-only approach may not be the best strategy. How does an investor capture the upside when commodities prices move up… and the downside when commodities turn? Consider RYLFX. The Rydex|SGI Long Short Commodities Fund. RYLFX provides the opportunity to capture returns on rising and falling commodity prices. Volatility is managed by monthly rebalancing–reducing size of commodity positions when historical price volatility is high. And the RYLFX mutual fund structure has no accredited investor requirements. It’s an intelligent way to own commodities in your client portfolios. • Monthly rebalancing reduces position when volatility is high. • Fund structure has no accredited investor requirements. Go to: rydex-sgi.com or call 800.258.4332. The intelligent pursuit of wealth. For more complete information regarding the fund, call 800.258.4332 or visit www.rydex-sgi.com for a prospectus and a summary prospectus (if available). Investors carefully consider the investment objectives, risks, charges and expenses a fund before investing. The fund’s prospectus and its summary prospectus (if should carefully consider the investment objectives, risks, charges and expenses ofof a fund before investing. The fund’s prospectus and its summary prospectus (if available) contains and other information about the the funds. Please read the prospectus and summary prospectus (if available) carefully before you invest available) contains thisthis and other information aboutfunds. Please read the prospectus and summary prospectus (if available) carefully before you invest or send or send money. money. Investing in alternative strategies presents the opportunity for signiﬁcant losses. There is no assurance that the investment objective will be attained. Rydex|SGI Long Short Commodities Strategy Fund is subject to a number of risks and may not be suitable for all investors. • The fund’s use of derivatives such as futures, options, structured notes and swap agreements may expose the fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. • A highly liquid secondary market may not exist for the commodity-linked structured notes the fund invests in, and there can be no assurance that a highly liquid secondary market will develop. The fund’s exposure to the commodity markets may subject the fund to greater volatility as commodity-linked investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or factors affecting a particular industry or commodity—such as droughts, ﬂoods,weather, embargos, tariffs and international economic, political and regulatory developments. • The fund’s use of short selling involves increased risk and costs. The fund risks paying more for a security than it received from its sale. Theoretically, securities sold short have the risk of unlimited losses. The more the fund invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. • When the fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF’s expenses. Further, in part because of these additional expenses, the performance of an ETF may differ from the performance the fund would achieve if it invested directly in the underlying investments of an ETF. • The fund is subject to tracking error risks, which may cause the fund’s performance not to match that of or be lower than the fund’s underlying benchmark. See the prospectus for more details. • The fund is considered nondiversiﬁed and can invest a greater portion of its assets in securities of individual issuers than a diversiﬁed fund. As a result, changes in the market value of a single security could cause greater ﬂuctuations in the value of fund shares than would occur in a more diversiﬁed fund. Rydex|SGI funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is aa registered investment advisor, and does business as Security Global InvestorsSM and Rydex Investments. SI and RDL are afﬁliates and are subsidiaries Security Beneﬁt Corporation, which is wholly owned by an by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is registered investment advisor, and does business as Security Global InvestorsSM and Rydex Investments. SI and RDL are afﬁliates and are subsidiaries of of Security Beneﬁt Corporation, which is wholly owned by Rydex SGI Guggenheim SBC Holdings, LLC, a special purpose entity managed by an afﬁliateGuggenheim Partners, LLC, a diversiﬁed ﬁnancial services ﬁrm rm with more than $100 billionassets under supervision. afﬁliate of Guggenheim SBC Holdings, LLC, a special purpose entity managed by of Guggenheim Partners, LLC, a diversiﬁed ﬁnancial services ﬁ with more than $100 billion in in assets under supervision. http://www.rydex-sgi.com http://www.rydex-sgi.com http://www.rydex-sgi.com

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2011

Morningstar Advisor - August/September 2011
Contents
Contributors
Letter From the Editor
Simplicity and Design Matter
Do You Use ETFs Strategically or Tactically?
The Institutional Way
How to Analyze an ETF
Eyeing ETFs’ Next Chapter
Small-Cap/Large-Cap Flip-Flop?
Four Picks for the Present
Investment Briefs
Morningstar Investment Conference
Pitfalls of Peer Groups
A REIT Recovery, With a Catch
Turning Fund Distribution on Its Head
Here Come ETF Managed Portfolios
Circle These Picks Amid the Crop of New ETFs
ETF Analyst Favorites
Beware, the Accidental Portfolio Manager
It’s the Destination, Not the Vehicle
New Growth, Rooted in Experience
Better Ways to Look at ETFs
How to Better Manage Your Clients’ Future(s)
More Bargain Than Bubble
Cheap, Local, and On a Roll
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
First-Quarter Assets Hit an All-Time High
You Say You Want a Revolution?

Morningstar Advisor - August/September 2011